procurement process through the issuance of a Request for Proposals (RFP) to ensure the City continues to receive high-quality, cost-effective, and technologically current services that align with the City’s operational needs and evolving service expectations.
DISCUSSION:
The City’s parking enforcement and citation processing operations are an important component of maintaining parking compliance, supporting public safety, and administering overnight parking permit programs citywide.
The City’s operational needs have continued to evolve since the execution of the current agreement in 2021, including increased emphasis on:
• Online and mobile-friendly customer access;
• Digital permit processing capabilities;
• Real-time citation management and reporting;
• Administrative citation tracking;
• Payment plan administration and compliance with State law; • Data security and records management;
• Integration with City operational systems; and
• Improved customer service and dispute resolution processes.
The proposed RFP process will allow the City to evaluate qualified vendors capable of providing comprehensive parking citation processing and permit management services while ensuring competitive pricing, operational efficiency, and enhanced technological capabilities.
Staff anticipates the RFP will seek proposals for services including, but not limited to:
Core Citation Processing Services
• Citation issuance and processing;
• Online citation payments;
• DMV registered owner processing;
• Delinquent notice administration;
• Collections processing and Franchise Tax Board (FTB) referrals; • Administrative hearing and appeal tracking;
• Citation reporting and reconciliation; and
• Payment plan administration in compliance with California law.
Parking Permit Management Services
• Overnight parking permit administration;
• Temporary permit processing;
• Online permit issuance and renewals;
• Permit fulfillment and mailing services;
• Customer account management; and
• Digital verification and recordkeeping.
Technology and Software Requirements
• Secure cloud-based system access;
• Mobile-friendly interfaces;
• Reporting and analytics dashboards;
• Real-time data access;
• Data retention and archival capabilities;
• Cybersecurity protections;
• Integration compatibility with existing City systems; and • Scalable software capable of adapting to future City operational needs.
Customer Service Expectations
• Multilingual customer support capabilities;
• Responsive customer service standards;
• Online dispute and appeal functionality;
• Accessible payment options; and
• Timely processing and resolution procedures.
The RFP process will provide the City with the opportunity to review current industry standards, evaluate available technologies and pricing structures, and determine the best overall value for the City.
Upon completion of the RFP process, staff will return to the City Council with a recommendation for award of contract, including proposed agreement terms, pricing, and implementation details.
LEGAL REVIEW:
The City Attorney has reviewed this report.
FISCAL IMPACT:
There is no immediate fiscal impact associated with the release of the RFP.
Future fiscal impacts associated with a recommended agreement will be presented to the City Council upon completion of the competitive procurement process. Costs associated with the current agreement include monthly service fees, per-citation processing fees, permit processing fees, postage, collections-related costs, and software-related service charges.
ATTACHMENT(S)
1. RFP for Citation Processing, Parking Permit Administration, Collections, and Parking Enforcement Support Services
City of Maywood
Request for Proposals
for
Citation Processing, Parking Permit
Administration, Collections, and Parking
Enforcement Support Services
Date of Issuance: May 28, 2026
RESPONSES MUST BE RECEIVED NO LATER THAN
3:00 p.m. on June 26, 2026
Submit via PlanetBids
4319 E. Slauson Avenue
Maywood, CA 90270
1 TABLE OF CONTENTS
I. PURPOSE .............................................................................................................1 II. BACKGROUND .....................................................................................................1 III. GENERAL REQUIREMENTS................................................................................1 IV. SCOPE OF SERVICES .........................................................................................1 V. SCHEDULE ...........................................................................................................4 VI. LIST OF INTERESTED PROPOSERS..................................................................5 VII. QUESTIONS..........................................................................................................5 VIII. SUBMITTAL PROCEDURES ................................................................................5 IX. SUBMITTAL FORMAT...........................................................................................6 X. AGREEMENT FOR PROFESSIONAL SERVICES ...............................................8 XI. GENERAL ADMINISTRATIVE INFORMATION ....................................................8 XII. SUBMITTAL DUE DATE........................................................................................9 XIII. SELECTION PROCESS........................................................................................9 XIV. AUTHORITY TO WITHDRAW .............................................................................10 XV. AWARD OF CONTRACT.....................................................................................10 XVI. ATTACHMENTS..................................................................................................10
1 I. PURPOSE
The purpose of this Request for Proposals (RFP) is to select the most-qualified Consultant to Provide Citation processing management, permits collection, and database Services for the City of Maywood. The City wishes to obtain Citation processing management, permits collection, and database services under a Professional Services Agreement. The City will award no more than one contract on a not-to-exceed basis.
II. BACKGROUND
The City of Maywood is issuing this Request for Proposals (RFP) for citation processing management, permit collection, and database Services. The City of Maywood is a General Law City, with a Council/Manager form of government. The city is located in the southeast region of Los Angeles County, is 1.18 square miles and is bordered by the cities of Bell, Vernon, Huntington Park, and Commerce.
The City is currently in the final year of its contract for citation processing services with PHOENIX GROUP Information Systems (PHX) which terminates on October 2, 2026.
III. GENERAL REQUIREMENTS
A. Respondents shall have at least five (5) years of consecutive experience in the Citation processing management, permits collection, and database services.
B. The proposed term of the contract under this RFP shall be for three years with the option to renew for two additional one-year periods at the discretion of the City.
C. Respondent shall comply with the insurance requirements set forth in the form professional services agreement.
IV. SCOPE OF SERVICES
A. The selected Respondent shall provide the following scope of services as follows:
1. The City of Maywood is seeking a consultant who is qualified to provide citation processing management, permit collection, and database services. The service task shall include but will not be limited to the information shown below. If the consultant believes that additional tasks are warranted, it must be clearly identified in the consultant proposals as a “suggested task” with a “suggested price” as well. The City will maintain the authority to accept or reject the suggested tasks.
2 2. The services of the parking citation management partner will be responsible for providing products and services necessary for the city to provide its parking customers with a seamless experience and staff with the tools necessary to manage daily parking operations.
The firm selected through this proposal process must demonstrate their organization’s ability to deliver responsive customer service to both its end users and management.
3. Transition / Implementation Requirements
The selected consultant shall be responsible for all transition and implementation services necessary to ensure continuity of operations, including data migration from the City’s existing citation processing system, staff training, testing, onboarding, and coordination with applicable State agencies. The transition shall occur with minimal disruption to City operations and public services.
4. Cybersecurity / Data Security Requirements
Consultant shall maintain industry-standard cybersecurity protections, including secure hosting environments, encrypted payment processing, regular system backups, disaster recovery capabilities, and compliance with applicable data security and payment processing standards, including PCI-DSS requirements.
5. Processing Services – The consultant will provide a citation processing management system and access to the website. The city and consultant will be in constant communication pertaining to any payment information, cancellations, dismissals, voids, corrections and/or citation(s) status. The consultant will also give continuous updates on the current status of payment whether it be monthly or where the city can check on the website provided.
a. DMV Requirements – The consultant will be responsible for ensuring that they are in constant communication with the California DMV. This is required as only Maywood residents are allowed to buy annual parking permits. The consultant will ensure that all registered owner information is matched to Maywood. Consultant must demonstrate experience
administering citation processing services in compliance with California Vehicle Code requirements, including AB 503
indigent payment plan administration and DMV hold
processing.
b. Permit Types
• The proposed system shall support the administration and management of overnight parking permits, including permit issuance, renewals, enforcement integration, payment
processing, and reporting capabilities.
• The system shall support temporary permit functionality for short-term parking needs, including configurable durations, automated expiration dates, and user-friendly issuance
3 processes for residents, guests, contractors, and special circumstances.
• The system shall include guest permit capabilities allowing residents to request, manage, and monitor visitor parking permits through an online portal or mobile-friendly platform. • The system shall support digital permit functionality that eliminates or minimizes the need for physical permits by utilizing electronic records, online verification, and
enforcement integration.
• The system shall support virtual and license plate-based permitting technology, allowing permits to be assigned directly to vehicle license plates for enforcement verification through handheld devices, vehicle-mounted systems, or web-based platforms.
The system shall allow City staff to configure permit rules, permit zones, time restrictions, eligibility requirements, permit limits, and enforcement parameters based on City operational needs.
c. Parking delinquent notices – The consultant will generate and mail out all notices for citations.
d. Mobile Friendly Resident Portal
The consultant’s platform shall be fully mobile responsive and accessible from smartphones and tablets, which will host mobile responsiveness, online appeals, permit uploads,
bilingual accessibility, ADA compliance.
6. Payment Processing – All payment processing will be handled by the consultant.
a. The consultant will provide a descriptive process of their payment processing system. This will include all invoicing, bank return checks, credit card payments, credit card charge back, and bank account and depositing procedures. This
consultant will itemize and disclose how they will process all payments. The consultant will inform the city if they need to include another process and will add an adjusted rate. The City reserves the right to decline. The city and consultants must come to a mutual agreement before any new task is
done. If a new task is completed without City approval the City will not be charged.
7. Consultant Website – The consultant will provide a website and link for Maywood residents to utilize. The website will allow for residents to buy their parking pass, pay citations, contact customer service.
The consultant will also have a remote website for remote data entry for City staff. This will allow City staff to check on citation status, notes provided by consultant. The consultant will provide different accounts for different staff. This will allow staff to create their own unique login and password. Individual staff will all have different
4 function levels. The Director of Building and Planning will have full access and will have the option to add or limit the function levels of City Staff.
8. City Municipal Code – The consultant will ensure that on every citation ticket it will match what is written on the City Municipal Code.
The Consultant must match all the records to the City Municipal Code.
9. Parking Citation Cost – The consultant will provide a yearly cost for all parking citations costs based on the website and consultant fees.
The consultant will list in the line item the service, price, description, and its annual cost. The consultant is also encouraged to submit their own scheduling fee if it is differing from the fillable form. Consultant must include a do-not-exceed amount.
10. Parking Permit Cost – The consultant will provide a yearly cost for all parking permit costs based on the website and consultant fees.
The consultant will list in the line item the service, price, description, and its annual cost. The consultant is also encouraged to submit their own scheduling fee if it is differing from the fillable form. Consultant must include a do-not-exceed amount.
11. Administrative Citation Processing Cost – The consultant will provide a yearly cost for all administrative citation processing costs based on the website and consultant fees. The consultant will list in the line item the service, price, description, and its annual cost. The consultant is also encouraged to submit their own scheduling fee if it is differing from the fillable form. Consultant must include a do-notexceed amount.
12. Mobile Enforcement – Parking Enforcement officers will be provided with all the necessary equipment needed out in the field.
The consultant will provide the parking enforcement offices with a license place reader/permit reader. The consultant will list in the line item the service, price, description, and its annual cost. The consultant is also encouraged to submit their own scheduling fee if it is differing from the fillable form. Consultant must include a do-notexceed amount.
13. Customer Service – The City expects an average wait time of 3 minutes for both payments and citation inquiries/requests. The consultant is expected to comply with the American Disabilities Act (ADA) requirements by providing reasonable accommodations for residents with hearing loss or deafness. An Interactive voice response must be provided, and it must provide accommodations in both English and in Spanish. The consultant must also specify any other languages that are being provided elsewhere.
Customers/residents must be provided with the ability to make citation and permits payments via secured website, IVR, and by first class mail.
5 a. Maintain a minimum system uptime of 99% for all hosted software, online permitting, payment processing, citation management, and customer portal services, excluding
scheduled maintenance periods approved by the City in
advance.
b. Ensure customer service calls are answered by a live representative or qualified support staff within an average wait time of three (3) minutes during normal business hours. c. Respond to all technical support issues, system outages, or service interruptions within twenty-four (24) hours of
notification, with critical system failures requiring immediate escalation and continuous communication until resolved. d. Establish and maintain permit processing and transaction turnaround standards, including timely review, approval, issuance, payment posting, and reporting functions, with proposed turnaround times to be clearly identified by the proposer in their response.
e. Provide regular system performance reporting to the City, including uptime metrics, customer response times, technical support response logs, and permit processing performance indicators.
14. Management – The consultants must be providing a designated account representative that will serve as the City’s primary point of contact. The representative will be required to provide management with regular integration updates and participate in any conference calls with management as deemed necessary.
a. Technical Support – The consultant must provide on-call technical services available to City staff during regular business hours, 8:00am-5:00pm PST. Technical services
provided via email are required 24 hours per day, 365 days per year and responses must be received within a 24-hour period of when a receipt was issued. Technical services will also be provided to City staff with an assigned representative. b. Real time reporting – The consultant must provide a detailed summary of its product such as real-time reporting capability which includes citation issuance, parking occupancy and any other service that the city might require.
c. The proposed system should be scalable and capable of integration with future parking enforcement technologies and City software platforms.
15. Reporting Period – The consultant must provide electronic reporting these reports will be accessible in standard pdf format for easy accessibility.
a. Required reports must include monthly billing reports, officer summary reports, officer summary year to date monthly
recap, void/dismiss report by operator, habitual offender hot
6 sheet report and detail, DMV monthly reports, out of state revenue detail report, revenue collection detail report, revenue distribution surcharge report, Contested citations pending and outcome, refunds “Due” report, FTB or special collections reports, and any other report the City might need in the future.
b. Automated Monthly Report – The consultant must provide a sample of monthly reports which provide city staff/accounting a detailed account of citation collections, all possible fee deductions, fines, and fees, etc. The consultant must provide this report within the first 10 days of the month.
c. Automated Annual and Fiscal year audit Report – The
consultant will be responsible for producing an annual report similar to/or identical to the automated monthly report for the fiscal year. The consultant must provide the electronic reports to the city within 30 days before the annual reporting period. d. The system shall provide customizable dashboards that allow City staff to configure, view, and monitor operational data, enforcement activity, permit activity, citation trends, revenue collection, and system performance metrics in real time. e. The system shall allow authorized users to export reports, records, financial data, citation data, permit activity, and analytics into commonly used formats including Microsoft Excel (.xlsx) and CSV files.
f. The system shall provide live analytics and real-time reporting capabilities to assist staff with monitoring enforcement activity, permit issuance, citation trends, payment activity, and operational performance.
g. The system shall generate citation aging reports that track outstanding citations, delinquency timelines, payment status, collections activity, appeals, and unresolved cases.
h. The system shall include revenue forecasting and financial reporting tools capable of projecting citation, permit, and program-related revenues based on historical trends, current activity, and user-defined variables.
i. The system shall provide officer productivity reporting features, including but not limited to citation issuance totals, route activity, patrol coverage, enforcement statistics, response activity, and performance metrics by officer, shift, zone, or date range.
7 V. SCHEDULE
Deadlines
Release of Requests for Proposals May 28, 2026
Submittal of Questions June 8, 2026, by 3:00 pm
Response to Questions June 15, 2026, by 3:00 pm
Proposal Due Date June 26, 2026, by 3:00 pm
Proposal Review/Evaluation Week of June 29, 2026
Interview (if required) Week of July 6, 2026
Tentative City Council award July 22, 2026
Tentative Start date August / September 2026
* These dates are anticipated and may change.
VI. LIST OF INTERESTED PROPOSERS
The full content of the RFP is available through the city website at www.cityofmaywood.org. If addendums are necessary, they will be posted onto the previously mentioned websites as well. All respondents interested in proposing on this RFP are encouraged to sign-up on the "List of Interested Proposers" for the project. This list will be used to email any project updates, addendums, changes or responses to written inquires and will be distributed to all interested contractors. .
VII. QUESTIONS
All questions regarding this RFP shall be submitted in writing via the PlanetBids portals.
The date and time when questions must be submitted are shown in “Section V-Schedule” of this RFP.
I. SUBMITTAL PROCEDURES
Submittals shall comply with all conditions, requirements and specifications contained herein, with any departure rendering the proposal non-responsive and may serve as grounds for rejection of the proposal at the City’s sole discretion. The submittal shall contain the name of this RFP.
Proposals shall be submitted in searchable PDF format on the City’s portal on PlanetBids at the following website: https://pbsystem.planetbids.com/portal/64496/portal-home Separate files shall be submitted for Technical and Cost Proposals. Submittals received after the specified date and time will be considered late and will not be considered for further evaluation.
8 VIII. SUBMITTAL FORMAT
All Respondents must submit qualifications according to the specifications set forth below.
Proposals should be prepared in such a way as to provide a straightforward, concise delineation of capabilities to satisfy the requirements of this RFP. Responses should emphasize the Respondent’s demonstrated capability to perform work of this type.
Proposals shall be valid for a minimum of 120 days following submission. The City reserves the right to request additional information that, in the City’s opinion, is necessary to ensure that the Proposer’s competence, qualified employees, business organization and financial resources are adequate for the performance of the services under this RFP.
A. WORK PROPOSAL
1. Cover Letter
a. Provide a cover letter including the Respondent’s name, address and telephone number of the contact person(s) who is authorized to submit the proposal on behalf of the
Respondent. The cover letter shall include a brief general statement of intent to perform the services and correspondent that all elements of the RFP have been reviewed and
understood. The letter should include a brief description of the Respondent’s Respondent. The letter should be signed by an individual who can bind the Respondent contractually. b. There shall be one person from the Respondent identified in the proposal who shall be the Respondent’s designated
representative and who is responsible for the services listed in "Section IV - Scope of Services" of this RFP (“Point of Contact”).
c. If applicable, Respondent shall acknowledge receipt of any addendum to the RFP.
2. Table of Contents
a. Include a table of content identifying the contents of the proposal in a format consistent with the proposal
requirements and format set forth herein.
3. Experience and Qualifications
a. Describe the Respondent, its size and organization, the number and location of offices, and general operational structure, as well as its management and key personnel.
Provide a description of the Respondent’s Respondent, its size and organization, the number and location of offices and general operational structure. Include a discussion
demonstrating that the Respondent has the resources
(financial, equipment, labor and capacity) available to provide services under this RFP from the first day at the start of the work.
b. Provide a summary of Respondents qualification and
experience Citation processing management, permits
collection, and database services. At a minimum, Respondent
9 should have at least seven (5) years of consecutive
experience.
c. Provide at least three references that received similar services from your Respondent at a minimum over the last five years. Include name of organization, contact name, telephone number and email address.
d. Demonstrate the qualifications of all personnel to be assigned to the City, including key personnel, by providing resumes and/or relative experience summaries describing their
education, credentials, licensing, training and related experience and their proposed roles for this contract.
e. Provide an organization chart of the proposed team, including a contingency plan should a member of the proposed team be unable to fulfill their responsibilities.
f. Respondent shall hold the required license(s) to perform the work and provide proof of required license for itself and its personnel.
4. Approach to Scope of Services
a. This section should set forth a comprehensive description of the approach to providing the Scope of Services and should clearly demonstrate an understanding of the City’s
requirements, the work to be done and the objectives to be accomplished. .
b. Provide a description of the work plan for the services describing how each task under the Scope of Services will be accomplished. This may be used as an Exhibit for the Scope of Services to the agreement.
c. Provide any other information or tasks that Respondent believes necessary to complete the Scope of Services.
B. COST PROPOSAL
1. Detailed Cost Proposal
a. Respondent shall submit a detailed cost proposal that shall include all tasks required to perform the Scope of Services.
The cost proposal shall indicate how the City will be charged for services (i.e. unit, hourly or flat rate basis as appropriate) for the term of the contract, including any extensions. Costs should include all services and materials if any, needed to perform the Scope of Services.
b. As it relates to the services under this RFP, if Respondent is proposing to provide the services on an hourly basis, the cost proposal shall identify the hourly rate for the personnel needed to complete the Scope of Services.
10 c. In addition, Respondent shall also submit the
rates/compensation for any “additional services” that
Respondent can provide.
IX. AGREEMENT FOR PROFESSIONAL SERVICES
The City of Maywood’s Agreement for Professional Services (Attachment 1) is included for review and comment. The Respondent’s submission of a proposal indicates Respondent’s compliance of such terms, unless the proposal indicates that compliance is not possible. Proposed revisions should be addressed in the cover letter; however, the City maintains discretion to accept or reject the Respondent’s request for revisions. The City reserves the right to make any revisions to the proposed professional services agreement.
X. GENERAL ADMINISTRATIVE INFORMATION
All respondents are advised to become familiar with all conditions, instructions and specifications of this RFP. By submitting a proposal, Respondent represents that it has thoroughly examined and become familiar with the work required under this RFP and that the Respondent has conducted such additional investigation as it deems necessary.
Once the contract has been made, a failure to have read the conditions or conduct any investigations of the properties shall not be caused to alter the contract or for Respondent to request additional compensation.
Each Respondent understands and agrees that the city, its departments, its officers, employees or agents are not responsible for:
• Any costs incurred by a Respondent in the preparation, delivery or presentation of a proposal.
• Any costs incurred by a Respondent in meeting the criteria as a result of making or submitting a proposal or subsequently in entering into a formal agreement with the City; and
• Any errors, inaccuracies or misstatements related to the information or data supplied to any contractor by the city. The use of such information or data provided by the City, its officers, employees or agents is intended to be used at the sole discretion and risk of the Respondent in the preparation of a proposal pursuant to this Request for Proposals only.
The selected Respondent shall comply with any and all Federal and State laws applicable to the services. All proposals submitted to the City of Maywood in response to this RFP shall become the property of the City and will not be returned and such proposals, after the agreement is awarded, are subject to the California Public Records Act.
The City reserves the right to accept, reject, modify or cancel in whole or in part, this RFP.
The City reserves the right to accept or reject any or all proposals, negotiate modifications to proposals that it deems acceptable, to request and consider additional information from any proposer, and to waive irregularities and technical defects in the proposal process, all in its sole discretion. The city has no obligation, express or implied, to make an award.
11 The City may reject proposals from Respondents who cannot satisfactorily provide the experience and qualifications required by this RFP and/or provides the scope of services required herein. The City reserves the right to seek new proposals when it determines that it is in the best interest to do so.
XI. SUBMITTAL DUE DATE
The submittal package must be received before the deadline specified in "Section V - Schedule" of this RFP. Respondents mailing a proposal must allow sufficient delivery time to ensure timely receipt of the proposal by the date and time specified. Submittals arriving after the deadline will not be considered.
XII. SELECTION PROCESS
All proposals timely received shall be reviewed to verify that the proposal meets the minimum requirements and qualifications. Proposals that have not complied with requirements, do not meet minimum content and quality standards, or take unacceptable exceptions to the professional services agreement, may be eliminated from further consideration at the discretion of the City. Proposals will be reviewed and evaluated by an evaluation committee comprised of City of Maywood personnel.
The city will be the sole and exclusive judge of quality and compliance with proposal specifications in any of the matters pertaining to this RFP. The City’s final selection will not be dictated on any single factor or criteria including price. The City reserves the right to award the contract(s) in any manner it deems to be in the best interest of the City and make the selection based on its sole discretion, notwithstanding the criteria set forth herein, including negotiating with one or more of the Respondents for the same services.
City will evaluate the proposals provided in response to this RFP based on the following criteria:
1. The city will evaluate Respondents based on meeting all of the City’s requirements and who offers the most advantageous combination of cost and high-quality service. In addition to cost, however, the City will consider the quality of services proposed, the financial qualification of, and the work experience of the proposer in determining the best value to the City.
2. Other criteria shall include, but not be limited to:
a. Quality and completeness of proposal
b. Qualifications and experience of proposer, including experience and qualifications of key personnel and staff
c. Similar experience and expertise in the type of work required, with the city or with other public agencies
d. Demonstrated understanding of the scope of services requested as well as capacity of respondent
e. References
f. Financial stability of proposer
g. Cost to the City
12 h. Oral interviews, if applicable.
i. Any other factors determined by the city to be relevant to the performance of these services.
XIII. AUTHORITY TO WITHDRAW
The City of Maywood reserves the right to withdraw this Request for Proposals without prior notice. The City of Maywood makes no representation that any agreement will be awarded to any Respondent as a result of having responded to this request. All proposals submitted to the City of Maywood in response to this RFP shall become the property of the City and will not be returned.
XIV. AWARD OF CONTRACT
Based on the outcome of the evaluation committee’s evaluation of the proposals, a recommendation will be submitted to the City Council for consideration of award. An award of a contract occurs when the contract is approved by the Maywood City Council.
Selection of a respondent with whom the City enters into contract negotiations with or a recommendation of an award by the evaluation committee or any other party, does not constitute an award of a contract. The contract shall be in accordance with the attached Agreement.
XV. ATTACHMENTS
Attachment 1. Form Professional Services Agreement
Attachment 2. Scope of Work
ATTACHMENT 1
PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is dated (“Effective Date”) and is between the City of Maywood, a California municipal corporation (“City”) and _____________ (“Contractor”). City and Contractor are sometimes referred to herein as the “Parties”, and individually as a “Party”.
RECITALS
A. City desires to utilize the services of Contractor as an independent Contractor to perform ____________________________________.
B. Contractor represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.
C. City desires to retain Contractor and Contractor desires to serve City to perform these services in accordance with the terms and conditions of this Agreement.
The Parties therefore agree as follows:
Contractor’s Services.
Scope of Services. Contractor shall perform the services described in the Scope of Services (the “Services”), attached as Exhibit A. City may request, in writing, changes in the Scope of Services to be performed. Any changes mutually agreed upon by the Parties, and any increase or decrease in compensation, shall be incorporated by written amendments to this Agreement.
Party Representatives. For the purposes of this Agreement, the City Representative shall be the City Manager, or such other person designated in writing by the City Manager (the “City Representative”). For the purposes of this Agreement, the Contractor Representative shall be ________________(the “Contractor Representative”). The Contractor Representative shall directly manage Contractor’s Services under this Agreement. Contractor shall not change the Contractor Representative without City’s prior written consent.
Time for Performance. Contractor shall commence the Services on the Effective Date and shall perform all Services by the deadline established by the City Representative or, if no deadline is established, with reasonable diligence.
Standard of Performance. Contractor shall perform all Services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City.
Personnel. Contractor has, or will secure at its own expense, all personnel required to perform the Services required under this Agreement. All of the Services required under this Agreement shall be performed by Contractor or under its supervision, and all personnel engaged in the work shall be qualified to perform such Services.
Compliance with Laws. Contractor shall comply with all applicable federal, state and local laws, ordinances, codes, regulations and requirements.
Permits and Licenses. Contractor shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the provision of Services under this Agreement, including a business license.
Term of Agreement. The term of this Agreement shall be from the Effective Date through _________________, unless sooner terminated as provided in Section 12 of this Agreement or extended.
Compensation.
Compensation. As full compensation for Scope of Services satisfactorily rendered, City agrees to compensate Contractor, and Contractor agrees to accept in full satisfaction for the services required by this Agreement, __________________, as more particularly described in Exhibit B (“Compensation”). Said Compensation shall constitute reimbursement of Contractor’s fee for the services as well as the actual cost of any staff time, other direct or indirect costs or fees, including the work of employees, Contractors and subcontractors, equipment, materials, and supplies necessary to provide the service (including all labor, materials, delivery, tax, assembly, and installation, as applicable). In no event shall the Contractor be paid more than $___________, which includes expenses and additional services (if any) during the term of this Agreement (“Maximum Compensation”). Any annual cost increases during optional renewal terms shall not exceed the Consumer Price Index (CPI) for the Los Angeles-Long BeachAnaheim region in a form submitted by request to the City prior to changes.
Expenses. The City will not reimburse Contractor for any expenses, unless expenses are agreed upon in advance in writing by both parties and/or set forth in Exhibit B.
Unauthorized Services and Expenses. City will not pay for any services not specified in the Scope of Services, unless the City Council or the City Representative, if applicable, and the Contractor Representative authorize such services in writing prior to Contractor’s performance of those services or incurrence of additional expenses. Any additional services or expenses authorized by the City Council or the City Representative shall be compensated at the rates set forth in Exhibit B, or, if not specified, at a rate mutually agreed to by the Parties. City shall make payment for additional services and expenses in accordance with Section 4 of this Agreement.
Method of Payment.
Invoices. Contractor shall submit to City an invoice, on a monthly basis, for the Services performed pursuant to this Agreement. Each invoice shall itemize the Services rendered during the billing period, hourly rates charged, if applicable, and the amount due. City shall review each invoice and notify Contractor in writing within ten Business days of receipt of any disputed invoice amounts.
Payment. City shall pay all undisputed invoice amounts within 30 calendar days after receipt up to the Maximum Compensation set forth in Section 3 of this Agreement or within such other reasonable time dependent on the City’s warrant run procedures. City does not pay interest on past due amounts. City shall not withhold federal payroll, state payroll or other taxes, or other similar deductions, from payments made to Contractor. Notwithstanding the preceding sentence, if Contractor is a nonresident of California, City will withhold the amount required by the Franchise Tax Board pursuant to Revenue and Taxation Code Section 18662 and applicable regulations.
Audit of Records. Contractor shall make all records, invoices, time cards, cost control sheets and other records maintained by Contractor in connection with this Agreement available during Contractor’s regular working hours to City for review and audit by City.
Independent Contractor. Contractor is, and shall at all times remain as to City, a wholly independent Contractor. Contractor shall have no power to incur any debt, obligation, or liability on behalf of City. Neither City nor any of its agents shall have control over the conduct of Contractor or any of Contractor’s employees, except as set forth in this Agreement. Contractor shall not, at any time, or in any manner, represent that it or any of its officers, agents or employees are in any manner employees of City.
Information and Documents.
Contractor covenants that all data, reports, documents, discussion, or other information (collectively “Data”) developed or received by Contractor or provided for performance of this Agreement are deemed confidential and shall not be disclosed or released by Contractor without prior written authorization by City. City shall grant such authorization if applicable law requires disclosure. Contractor, its officers, employees, agents, or subContractors shall not without written authorization from the City Manager or unless requested in writing by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court
order shall not be considered “voluntary,” provided Contractor gives City notice of such court order or subpoena.
Contractor shall promptly notify City should Contractor, its officers, employees, agents or subContractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the City. City may, but has no obligation to, represent Contractor or be present at any deposition, hearing or similar proceeding.
Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, City’s right to review any such response does not imply or mean the right by City to control, direct or rewrite the response.
All Data required to be furnished to City in connection with this Agreement shall become City’s property, and City may use all or any portion of the Data submitted by Contractor as City deems appropriate. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files containing data generated for the Services, surveys, notes, and other documents prepared in the course of providing the Services shall become City’s sole property and may be used, reused or otherwise disposed of by City without Contractor’s permission. Contractor may take and retain copies of the written products as desired, but the written products shall not be the subject of a copyright application by Contractor. All data generated pursuant to this contract shall remain the sole property of the City of Maywood.
Contractor’s covenants under this Section shall survive the expiration or termination of this Agreement.
Conflicts of Interest. Contractor and its officers, employees, associates and subContractors, if any, shall comply with all conflict of interest statutes of the State of California applicable to Contractor’s Services under this Agreement, including the Political Reform Act (Gov. Code § 81000, et seq.) and Government Code Section 1090. During the term of this Agreement, Contractor may perform similar Services for other clients, but Contractor and its officers, employees, associates and subContractors shall not, without the City Representative’s prior written approval, perform work for another person or entity for whom Contractor is not currently performing work that would require Contractor or one of its officers, employees, associates or subContractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Contractor shall incorporate a clause substantially similar to this Section into any subcontract that Contractor executes in connection with the performance of this Agreement.
Indemnification, Hold Harmless, and Duty to Defend.
Indemnities.
To the fullest extent permitted by law, Contractor shall, at its sole cost and expense, defend, hold harmless and indemnify City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent Contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith and the payment of all consequential damages (collectively “Liabilities”), in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Contractor, its officers, agents, servants, employees, subContractors, materialmen, Contractors or their officers, agents, servants or employees (or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees as determined by court decision or by the agreement of the Parties. Contractor shall defend the Indemnitees in any action or actions filed in connection with any Liabilities with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Contractor shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith.
Contractor shall pay all required taxes on amounts paid to Contractor under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent Contractor relationship created by this Agreement. Contractor shall fully comply with the workers’ compensation law regarding Contractor and Contractor’s employees. Contractor shall indemnify and hold City harmless from any failure of Contractor to comply with applicable workers’ compensation laws. City may offset against the amount of any fees due to Contractor under this Agreement any amount due to City from Contractor as a result of Contractor’s failure to promptly pay to City any reimbursement or indemnification arising under this subparagraph A.2).
Contractor shall obtain executed indemnity agreements with provisions identical to those in this Section from each and every subContractor or any other person or entity involved by, for, with or on behalf of Contractor in the performance of this Agreement. If Contractor fails to obtain such indemnity obligations, Contractor shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Liabilities at law or in equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Contractor’s subContractor, its officers, agents, servants, employees, subContractors, materialmen, Contractors or their officers, agents, servants or employees (or any entity or individual that Contractor’s subContractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive
negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees as determined by court decision or by the agreement of the Parties.
Workers’ Compensation Acts not Limiting. Contractor’s indemnifications and obligations under this Section, or any other provision of this Agreement, shall not be limited by the provisions of any workers’ compensation act or similar act. Contractor expressly waives its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.
Insurance Requirements not Limiting. City does not, and shall not, waive any rights that it may possess against Contractor because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. The indemnities in this Section shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liabilities, tax, assessment, penalty or interest asserted against City.
Survival of Terms. Contractor’s indemnifications and obligations under this Section shall survive the expiration or termination of this Agreement.
Insurance.
Minimum Scope and Limits of Insurance. Contractor shall procure and at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:
Commercial General Liability Insurance with a minimum limit of $1,000,000.00 per occurrence for bodily injury, personal injury and property damage and a general aggregate limit of $1,000,000.00 per project or location. If Contractor is a limited liability company, the commercial general liability coverage shall be amended so that Contractor and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.
Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of $1,000,000.00 per accident for bodily injury and property damage. If Contractor does not use any owned, nonowned or hired vehicles in the performance of Services under this Agreement, Contractor shall provide insurance in the amount required by California law.
Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of $1,000,000.00 per accident for bodily injury or disease. If Contractor has no employees while performing Services under this Agreement, workers’ compensation policy is not required, but Contractor shall execute a declaration that it has no employees.
Acceptability of Insurers. The insurance policies required under this Section shall be issued by an insurer admitted to write insurance in the State of California with a rating of A:VII
or better in the latest edition of the A.M. Best Insurance Rating Guide or such other rating as approved by the City Manager. Self insurance shall not be considered to comply with the insurance requirements under this Section.
Additional Insured. The general liability policy shall contain an endorsement naming City and its elected and appointed officials, officers, employees, agents and volunteers as additional insureds. This provision shall also apply to any excess/umbrella liability policies.
Primary and Non-Contributing. The insurance policies required under this Section shall apply on a primary non-contributing basis in relation to any other insurance or self-insurance available to City. Any insurance or self-insurance maintained by City, its elected and appointed officials, officers, employees, agents or volunteers, shall be in excess of Contractor’s insurance and shall not contribute with it.
Contractor’s Waiver of Subrogation. The insurance policies required under this Section shall not prohibit Contractor and Contractor’s employees, agents or subContractors from waiving the right of subrogation prior to a loss. Contractor hereby waives all rights of subrogation against City.
Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by City. At City’s option, Contractor shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Contractor shall procure a bond guaranteeing payment of losses and expenses.
Cancellations or Modifications to Coverage. Contractor shall not cancel, reduce or otherwise modify the insurance policies required by this Section during the term of this Agreement. The commercial general and automobile liability policies required under this Agreement shall be endorsed to state that should the issuing insurer cancel the policy before the expiration date, the issuing insurer will endeavor to mail 30 days’ prior written notice to City.
If any insurance policy required under this Section is canceled or reduced in coverage or limits, Contractor shall, within two Business Days of notice from the insurer, phone, fax or notify City via certified mail, return receipt requested, of the cancellation of or changes to the policy.
City Remedy for Noncompliance. If Contractor does not maintain the policies of insurance required under this Section in full force and effect during the term of this Agreement, or in the event any of Contractor’s policies do not comply with the requirements under this Section, City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may, but has no duty to, take out the necessary insurance and pay, at Contractor’s expense, the premium thereon. Contractor shall promptly reimburse City for any premium paid by City or City may withhold amounts sufficient to pay the premiums from payments due to Contractor.
Evidence of Insurance. Prior to the performance of Services under this Agreement, Contractor shall furnish City’s Risk Manager or such other official designed by the City Manager with a certificate or certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Section. The endorsements are subject to City’s approval. Contractor may provide complete, certified copies of all required insurance policies to City. Contractor shall maintain current endorsements on file with City’s Risk Manager.
Contractor shall provide proof to City’s Risk Manager that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Contractor shall furnish such proof at least two weeks prior to the expiration of the coverages.
Indemnity Requirements not Limiting. Procurement of insurance by Contractor shall not be construed as a limitation of Contractor’s liability or as full performance of Contractor’s duty to indemnify City under Section 8 of this Agreement.
SubContractor Insurance Requirements. Contractor shall require each of its subContractors that perform Services under this Agreement to maintain insurance coverage that meets all of the requirements of this Section.
Mutual Cooperation.
City’s Cooperation. City shall provide Contractor with all pertinent Data, documents and other requested information as is reasonably available for Contractor’s proper performance of the Services required under this Agreement.
Contractor’s Cooperation. In the event any claim or action is brought against City relating to Contractor’s performance of Services rendered under this Agreement, Contractor shall render any reasonable assistance that City requires.
Records and Inspections. Contractor shall maintain complete and accurate records with respect to time, costs, expenses, receipts, correspondence, and other such information required by City that relate to the performance of the Services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Contractor shall provide free access to City, its designees and representatives at reasonable times, and shall allow City to examine and audit the books and records, to make transcripts therefrom as necessary, and to inspect all work, data, documents, proceedings and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three years after receipt of final payment.
Termination of Agreement.
Right to Terminate. City may terminate this Agreement at any time, at will, for any reason or no reason, after giving written notice to Contractor at least ten calendar days before the termination is to be effective. Contractor may terminate this Agreement at any time, at will, for any reason or no reason, after giving written notice to City at least 60 calendar days before the termination is to be effective.
Obligations upon Termination. Contractor shall cease all work under this Agreement on or before the effective date of termination specified in the notice of termination. In the event of City’s termination of this Agreement due to no fault or failure of performance by Contractor, City shall pay Contractor based on the percentage of work satisfactorily performed up to the effective date of termination. In no event shall Contractor be entitled to receive more than the amount that would be paid to Contractor for the full performance of the Services required by this Agreement. Contractor shall have no other claim against City by reason of such termination, including any claim for compensation.
Force Majeure. Contractor shall not be liable for any failure to perform its obligations under this Agreement if Contractor presents acceptable evidence, in City’s sole judgment, that such failure was due to acts of God, embargoes, inability to obtain labor or materials or reasonable substitutes for labor or materials, governmental restrictions, governmental regulations, governmental controls, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes beyond Contractor’s reasonable control and not due to any act by Contractor.
Default.
Contractor’s failure to comply with the provisions of this Agreement shall constitute a default. In the event that Contractor is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Contractor for any work performed after the date of default.
In addition to the right to terminate pursuant to Section 12, if the City Manager determines that Contractor is in default in the performance of any of the terms or conditions of this Agreement, City shall serve Contractor with written notice of the default. Contractor shall have ten calendar days after service upon it of the notice in which to cure the default by rendering a satisfactory performance. In the event that Contractor fails to cure its default within such period of time, City may, notwithstanding any other provision of this Agreement, terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.
Notices. Any notice, consent, request, demand, bill, invoice, report or other communication required or permitted under this Agreement shall be in writing and conclusively deemed effective:
(a) on personal delivery, (b) on confirmed delivery by courier service during Contractor’s and
City’s regular business hours, or (c) three Business Days after deposit in the United States mail, by first class mail, postage prepaid, and addressed to the Party to be notified as set forth below:
If to City: If to Contractor:
Attn: City Manager _________________
City of Maywood _________________
4319 East Slauson Avenue _________________
Maywood, California 90270 _________________
Non-Discrimination and Equal Employment Opportunity. In the performance of this Agreement, Contractor shall not discriminate against any employee, subContractor or applicant for employment because of race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information, sexual orientation or other basis prohibited by law.
Contractor will take affirmative action to ensure that subContractors and applicants are employed, and that employees are treated during employment, without regard to their race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information or sexual orientation.
Prohibition of Assignment and Delegation. Contractor shall not assign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, without City’s prior written consent. City’s consent to an assignment of rights under this Agreement shall not release Contractor from any of its obligations or alter any of its primary obligations to be performed under this Agreement. Any attempted assignment or delegation in violation of this Section shall be void and of no effect and shall entitle City to terminate this Agreement. As used in this Section, “assignment” and “delegation” means any sale, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of the rights, obligations, or liabilities in or arising from this Agreement to any person or entity, whether by operation of law or otherwise, and regardless of the legal form of the transaction in which the attempted transfer occurs.
No Third Party Beneficiaries Intended. This Agreement is made solely for the benefit of the Parties to this Agreement and their respective successors and assigns, and no other person or entity may have or acquire a right by virtue of this Agreement.
Waiver. No delay or omission to exercise any right, power or remedy accruing to City under this Agreement shall impair any right, power or remedy of City, nor shall it be construed as a waiver of, or consent to, any breach or default. No waiver of any breach, any failure of a condition, or
any right or remedy under this Agreement shall be (1) effective unless it is in writing and signed by the Party making the waiver, (2) deemed to be a waiver of, or consent to, any other breach, failure of a condition, or right or remedy, or (3) deemed to constitute a continuing waiver unless the writing expressly so states.
Final Payment Acceptance Constitutes Release. The acceptance by Contractor of the final payment made under this Agreement shall operate as and be a release of City from all claims and liabilities for compensation to Contractor for anything done, furnished or relating to Contractor’s work or services. Acceptance of payment shall be any negotiation of City’s check or the failure to make a written extra compensation claim within ten calendar days of the receipt of that check. However, approval or payment by City shall not constitute, nor be deemed, a release of the responsibility and liability of Contractor, its employees, subContractors and agents for the accuracy and competency of the information provided and/or work performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by City for any defect or error in the work prepared by Contractor, its employees, subContractors and agents.
Corrections. In addition to the above indemnification obligations, Contractor shall correct, at its expense, all errors in the work which may be disclosed during City’s review of Contractor’s report or plans. Should Contractor fail to make such correction in a reasonably timely manner, such correction may be made by City, and the cost thereof shall be charged to Contractor. In addition to all other available remedies, City may deduct the cost of such correction from any retention amount held by City or may withhold payment otherwise owed Contractor under this Agreement up to the amount of the cost of correction.
Non-Appropriation of Funds. Payments to be made to Contractor by City for services performed within the current fiscal year are within the current fiscal budget and within an available, unexhausted fund. In the event that City does not appropriate sufficient funds for payment of Contractor’s services beyond the current fiscal year, this Agreement shall cover payment for Contractor’s services only to the conclusion of the last fiscal year in which City appropriates sufficient funds and shall automatically terminate at the conclusion of such fiscal year.
Exhibits. Exhibits A and B constitute a part of this Agreement and are incorporated into this Agreement by this reference. If any inconsistency exists or arises between a provision of this Agreement and a provision of any exhibit, or between a provision of this Agreement and a provision of Contractor’s proposal, the provisions of this Agreement shall control.
Entire Agreement and Modification of Agreement. This Agreement and all exhibits referred to in this Agreement constitute the final, complete and exclusive statement of the terms of the agreement between the Parties pertaining to the subject matter of this Agreement and supersede all other prior or contemporaneous oral or written understandings and agreements of
the Parties. No Party has been induced to enter into this Agreement by, nor is any Party relying on, any representation or warranty except those expressly set forth in this Agreement. This Agreement may not be amended, nor any provision or breach hereof waived, except in a writing signed by both Parties.
Headings. The headings in this Agreement are included solely for convenience of reference and shall not affect the interpretation of any provision of this Agreement or any of the rights or obligations of the Parties to this Agreement.
Word Usage. Unless the context clearly requires otherwise, (a) the words “shall,” “will” and “agrees” are mandatory and “may” is permissive; (b) “or” is not exclusive; and (c) “includes” or “including” are not limiting.
Time of the Essence. Time is of the essence in respect to all provisions of this Agreement that specify a time for performance; provided, however, that the foregoing shall not be construed to limit or deprive a Party of the benefits of any grace or use period allowed in this Agreement.
Business Days. “Business days” means days Maywood City Hall is open for business.
Governing Law and Choice of Forum. This Agreement, and any dispute arising from the relationship between the Parties to this Agreement, shall be governed by and construed in accordance with the laws of the State of California, except that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement. Any dispute that arises under or relates to this Agreement (whether contract, tort or both) shall be resolved in a superior court with geographic jurisdiction over the City of Maywood.
Attorneys’ Fees. In any litigation or other proceeding by which a Party seeks to enforce its rights under this Agreement (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this Agreement, the prevailing Party shall be entitled to recover all attorneys’ fees, experts’ fees, and other costs actually incurred in connection with such litigation or other proceeding, in addition to all other relief to which that Party may be entitled.
Severability. If a court of competent jurisdiction holds any provision of this Agreement to be illegal, invalid or unenforceable for any reason, the validity of and enforceability of the remaining provisions of this Agreement shall not be affected and continue in full force and effect.
Counterparts. This Agreement may be executed in multiple counterparts, all of which shall be deemed an original, and all of which will constitute one and the same instrument.
Corporate Authority. Each person executing this Agreement on behalf of his or her Party warrants that he or she is duly authorized to execute this Agreement on behalf of that Party and that by such execution, that Party is formally bound to the provisions of this Agreement.
[SIGNATURE PAGE FOLLOWS]
The Parties, through their duly authorized representatives are signing this Agreement on the date stated in the introductory clause.
City:
City of Maywood,
a California municipal corporation
By:
Heber Marquez
Mayor of the City of Maywood
ATTEST:
By:
Miguel Leon, Deputy City Clerk
APPROVED AS TO FORM:
By:
Roxanne Diaz, City Attorney
Contractor:
_________________________
By:
Name: ___________________
Title: ____________________
EXHIBIT A
SCOPE OF SERVICES
EXHIBIT B
COMPENSATION
AGENDA REPORT
CITY OF MAYWOOD
AGENDA ITEM NO. 9.
DATE: May 27, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROXANNE DIAZ, CITY ATTORNEY
BY: JENNIFER VASQUEZ, CITY MANAGER
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 26-01, AN ORDINANCE
OF THE CITY COUNCIL OF THE CITY OF MAYWOOD AMENDING PENALTY
PROVISIONS FOR VARIOUS VIOLATIONS OF THE MAYWOOD MUNICIPAL CODE RECOMMENDATION:
Adopt Ordinance No. 26-01, an ordinance of the City Council of the City of Maywood amending penalty provisions for various violations of the Maywood Municipal Code.
BACKGROUND:
California Government Code Section 36900(a) provides that every violation of a city ordinance is a misdemeanor unless by ordinance it is made an infraction. In 2023, the City adopted Ordinance No. 23-03 to amend certain penalty provisions of the Maywood Municipal Code to provide the City with greater ability to deter violations of the Code and to sanction persons who do commit violations of the Maywood Municipal Code. The City Prosecutor, who works with City Staff on code enforcement matters, is recommending that the City make several clarifications and amendments to strengthen the City's ability to impose fines and penalties on those persons who violate the Municipal Code and to clean-up inconsistencies in our Code.
At its regular meeting on April 22, 2026, the City Council introduced Ordinance No. 26-01 by title only and waived full reading. Ordinance No. 26-01 is now before the City Council for second reading and adoption.
DISCUSSION:
in Section 1 makes several revisions to the general penalty provisions of the Municipal Code to make clear that it is a violation not only to violate or fail to comply with any provision of the Municipal Code but also any ordinance of the City or rule or regulation adopted pursuant to an ordinance or any approval or permit issued under the Code. Further, there are clarifications as to when a violation is not a misdemeanor. In Section 2, the public nuisance provision has been updated. In the remaining Sections 3 through 9, revisions were made for clarity and internal consistency to provide the City with the most flexibility in terms of enforcement. Attachment 1 provides a redline of the proposed revisions and Attachment 2 is the clean final version of Ordinance No. 26-
01. Because Ordinance No. 26-01 was introduced at the April 22, 2026 City Council meeting, staff recommends that the City Council adopt Ordinance No. 26-01.
LEGAL REVIEW:
The City Prosecutor drafted Ordinance No. 26-01, and the City Attorney has reviewed this report.
FISCAL IMPACT:
Upon adoption, costs will be incurred for incorporation of the ordinance into the City’s Municipal Code through Municode. Funding in the amount of $15,000 has been budgeted for this purpose within the City Clerk’s Division.
ATTACHMENT(S)
1. Attachment 1 - Final Ordinance 26-01 Penalties Ordinance
2. Attachment 2 - Legislative Digest of Ordinance 26-01 Penalties
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ORDINANCE NO. 26-01
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MAYWOOD
AMENDING PENALTY PROVISIONS FOR VARIOUS VIOLATIONS OF THE
MAYWOOD MUNICIPAL CODE
WHEREAS, California Government Code Section 36900(a) provides that every violation of a city ordinance is a misdemeanor unless by ordinance it is made an infraction;
WHEREAS, on April 26, 2023, the City Council of the City of Maywood adopted Ordinance No. 23-03, which, in part, amended penalty provisions of the Maywood Municipal Code to provide greater ability to the City to deter violations of the Maywood Municipal Code and to sanction persons who do commit violations of the Maywood Municipal Code;
WHEREAS, infraction violations, like traffic tickets, are punishable only by a fine, and a defendant is often able to avoid appearing before a judge by paying the requisite fine;
WHEREAS, misdemeanor violations are punishable by a fine, imprisonment in jail, or both fine and jail, and persons charged and/or convicted of misdemeanor violations are subject to court supervision in the form of “diversion” or “probation” and can be ordered to address recurring behavioral issues and/or to correct any ongoing or continuing violation; and, WHEREAS, the City Council of the City of Maywood desires to further clarify the penalties for violations of the Maywood Municipal Code
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
MAYWOOD DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Section 1-2.01.A (“Misdemeanors, Infractions, and Civil Penalty”) of Chapter 2 (“Penalty Provisions”) of Title 1 (“General Provisions”) of the Maywood Municipal Code is hereby amended to read as follows:
“1-2.01 – Misdemeanors, Infractions, and Civil Penalty
A. No person shall violate or fail to comply with any
provision or requirement of this Code, any ordinance of the City, any rule or regulation promulgated pursuant to any ordinance or provision of this Code, or any approval or permit issued pursuant to this Code.
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Any person who shall violate or fail to comply with any provision or requirement of this Code, any ordinance of the City, any rule or regulation promulgated pursuant to any ordinance or provision of this Code, or a condition of any approval or permit issued pursuant to this Code, shall be guilty of a misdemeanor, unless:
1) Such a violation or failure is designated as an
infraction by this Code, any ordinance of the City, or any applicable State or Federal law;
2) The City Attorney or City Prosecutor files a
complaint charging the offense as an infraction;
3) After the filing of a misdemeanor complaint, the
Court, upon motion of the people, reduces the offense to an infraction, and the defendant does not object to having the case proceed as an infraction; or,
4) Such a violation or failure is prosecuted as a
civil administrative action pursuant to pursuant to Title 6, Chapter 4, Section 6-4.30 of this Code.”
Section 2. Section 1-2.01.B (“Misdemeanors, Infractions, and Civil Penalty”) of Chapter 2 (“Penalty Provisions”) of Title 1 (“General Provisions”) of the Maywood Municipal Code is hereby amended to read as follows:
“B. Public Nuisance. In addition to the penalties provided by this Section, Any violation of any provision of this Code, any ordinance of the City, any rule or regulation promulgated pursuant to any ordinance or provision of this Code, or any approval or permit issued pursuant to this Code, shall be deemed a public nuisance and may be summarily abated by the City by any and all means (civil, administrative, and/or equitable) as provided by law or in equity. All remedies provided herein shall be cumulative and not exclusive.” Section 3. Section 3-1.102(b) (“License: Required”) of Article 1 (“General Provisions”) of Chapter 1 (“Business Licensing”) of Title 3 (“Finance”) of this Code is hereby amended to read as follows:
“(b) Any person violating any of the provisions of the herein title or knowingly or intentionally misrepresenting to any officer or employee of the city any material fact in procuring or any license or permit provided for in this Code shall be deemed guilty of an misdemeanor, punishable in accordance with the provisions of Section 1-2.01 of this Code. Any person failing to comply with this Article shall continue to be responsible for the payment of any license fees, interest, and/or penalties due the City All remedies
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prescribed herein shall be cumulative, and the use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions of this Code.”
Section 4. Section 4-8.11 (“Violations”) of Chapter 8 (“Alarm Systems”) of Title 4 (“Public Safety”) of this Code is hereby amended to read as follows:
“(a) In addition to any other penalty authorized by law, any alarm installed or maintained in violation of this chapter is declared to be a public nuisance and may be abated as provided by law.”
Section 5. Section 5-25.04(b) (“Enforcement – Penalty for Violation”) of Chapter 25 (“Sales of Personal Property in Residential Zones”) of Title 5 (“Public Welfare, Morals, and Conduct”) of this Code is hereby amended to read as follows:
“(b) Penalty for violation
(1) In addition to any other penalty authorized by law, violators shall also forfeit any permit issued under this chapter and the right to seek a permit hereunder for one (1) year from the date of the violation.”
Section 6. Section 5-42.03 (“Enforcement”) of Chapter 42 (“Smoking Prohibited in Parks and Recreation Areas”) of Title 5 (“Public Welfare, Morals, and Conduct”) of this Code is hereby amended to read as follows:
“(a) Punishment under this Chapter shall not preclude
punishment pursuant to Health and Safety Code Section 13002, Penal Code Section 374.4 or any other law proscribing the act of littering. Nothing in this Chapter shall preclude any person, corporation or governmental entity from seeking any other remedies, penalties or procedures provided by law whether civil or criminal.”
Section 7. Section 6-10.07 (“Enforcement”) of Chapter 10 (“Urban Storm Water Mitigation, Management, and Discharge”) of Title 6 (“Sanitation and Health”) of this Code is hereby amended to read as follows:
“(a) Whenever necessary to make an inspection to enforce any of the provisions of this chapter or whenever an authorized
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enforcement officer has reasonable cause to believe that there exists in any building or upon any premises any condition which constitutes a violation of the provisions of this chapter, the officer may, upon consent or upon obtaining an inspection warrant, enter such building or premises at all reasonable times to inspect the same or perform any duty imposed upon the officer by this chapter.
(b) Routine or area inspections shall be based upon such reasonable selection process as may be deemed necessary to carry out the objectives of this chapter, including but not limited to, random sampling and/or sampling in areas with evidence of storm water contamination, discharges of non-storm water into the City's storm drain system, discharges which are not pursuant to an NPDES permit or similar factors.
(c) For the first failure to comply with any provision of this chapter, the City Manager, or his or her designee, may issue to the person believed to be the violator, a written notice, which includes the following:
(1) A statement specifying the violation committed;
(2) A specified time period within which the affected person shall correct the failure or file a written notice disputing the notice of violation;
(3) A statement of the penalty for continued noncompliance (d) Each failure to comply with any provision of this chapter following written notice issued pursuant to subsection (c) of this section, shall constitute a misdemeanor punishable as provided in Section 1-2.04 of the Maywood Municipal Code. Each day during which a person fails to comply with the provisions of this chapter following written notice shall constitute a separate offense.
(e) A violation of any provision of this chapter is declared a public nuisance, and the City Attorney is authorized to abate such violation by means of a civil action.
(f) The penalties and remedies established by this section shall become accumulative.”
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Section 8. Section 8-16.01 (“Temporary Structures, Canopies and Similar Uses”) of Chapter 16 (“Temporary Structures and Canopies”) of Title 8 (“Building Regulations”) of this Code is hereby amended to read as follows:
“Temporary structures as defined by Section 2020.200 of the Zoning Ordinance are not permitted in any zoning land use designation where visible from the public right-of-way except pursuant to this section. The definition of temporary structure shall also include any structure which is covered by a tarpaulin, or a tarpaulin which is suspended by any means which is used for shelter purposes.
Professionally manufactured appropriately sized canopies and tarpaulin covers designed for shelter of vehicles or outdoor activities and used in the manner for which they were designed, may be maintained on a long-term basis in driveways and approved parking areas of front yards, side yards and rear yards for the cover of vehicles, so long as they are properly maintained in safe condition, do not become deteriorated, and do not protrude into the front yard setback area from the front of the building structure by more than three (3′) feet.
Except as provided above, temporary structures visible from the public right-of-way such as canopies or tarpaulin covers, shall not be utilized for longer than forty-eight (48) consecutive hours, once a month in any calendar year on any lot within the City.
Violation of this section may be enforced by any means legally available to the City, including as set forth in Chapter 2 (“Penalty Provisions”) of Title 1 (“General Provisions”) of this Code, as that Chapter may be amended from time to time.”
Section 9. The following sections and subsections are hereby repealed and deleted in their entirety:
(a) Section 5-22.05 (“Littering – Violation: Infraction”); and, (b) Section 5-30.02 (“Consumption of Alcoholic Beverages – Violation:
Infraction”).
SECTION 10: Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Ordinance or any part thereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The
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City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional.
SECTION 11: Effective Date. This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days after passage and adoption.
SECTION 12: Certification and Publication. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published or posted in the manner prescribed by law.
PASSED, APPROVED, AND ADOPTED this 27th day of May, 2026.
HEBER MARQUEZ, Mayor
ATTEST:
MIGUEL LEON, Deputy City Clerk
I, Miguel Leon, Deputy City Clerk of the City of Maywood, hereby certifies that Ordinance No. 26-01 was duly passed, approved, and adopted by the City Council of the City of Maywood at a regular meeting held the 27th day of May, 2026, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
MIGUEL LEON, Deputy City Clerk
LEGISLATIVE DIGEST OF MUNICIPAL CODE REVISIONS
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ORDINANCE NO. 26-01
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MAYWOOD
AMENDING PENALTY PROVISIONS FOR VARIOUS VIOLATIONS OF THE
MAYWOOD MUNICIPAL CODE
WHEREAS, California Government Code Section 36900(a) provides that every violation of a city ordinance is a misdemeanor unless by ordinance it is made an infraction;
WHEREAS, on April 26, 2023, the City Council of the City of Maywood adopted Ordinance No. 23-03, which, in part, amended penalty provisions of the Maywood Municipal Code to provide greater ability to the City to deter violations of the Maywood Municipal Code and to sanction persons who do commit violations of the Maywood Municipal Code;
WHEREAS, infraction violations, like traffic tickets, are punishable only by a fine, and a defendant is often able to avoid appearing before a judge by paying the requisite fine;
WHEREAS, misdemeanor violations are punishable by a fine, imprisonment in jail, or both fine and jail, and persons charged and/or convicted of misdemeanor violations are subject to court supervision in the form of “diversion” or “probation” and can be ordered to address recurring behavioral issues and/or to correct any ongoing or continuing violation; and, WHEREAS, the City Council of the City of Maywood desires to further clarify the penalties for violations of the Maywood Municipal Code
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MAYWOOD DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Section 1-2.01.A (“Misdemeanors, Infractions, and Civil Penalty”) of Chapter 2 (“Penalty Provisions”) of Title 1 (“General Provisions”) of the Maywood Municipal Code is hereby amended to read as follows:
1-2.01 – Misdemeanors, Infractions, and Civil Penalty
A. No person shall violate or fail to comply with any
provision or requirement of this Code, any ordinance of the City, any rule or regulation promulgated pursuant to any ordinance or
LEGISLATIVE DIGEST OF MUNICIPAL CODE REVISIONS
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provision of this Code, or any approval or permit issued pursuant to this Code.
Any person who shall violate or fail to comply with any provision or requirement of this Code, any ordinance of the City, any rule or regulation promulgated pursuant to any ordinance or provision of this Code, or a condition of any approval or permit issued pursuant to this Code, shall be guilty of a misdemeanor, unless:
1) sSuch a violation or failure is designated as an
infraction by this Code, any ordinance of the City, or any applicable State or Federal law;
2) The City Attorney or City Prosecutor files a
complaint charging the offense as an infraction;
3) After the filing of a misdemeanor complaint, the
Court, upon motion of the people, reduces the offense to an infraction, and the defendant does not object to having the case proceed as an infraction; or,
4) or is subsequently prosecuted as an infraction,
in which case such person is guilty of an infraction; or 2) sSuch a violation or failure is prosecuted as a civil administrative action pursuant to pursuant to Title 6, Chapter 4, Section 6-4.30 of this Code.
Section 2. Section 1-2.01.B (“Misdemeanors, Infractions, and Civil Penalty”) of Chapter 2 (“Penalty Provisions”) of Title 1 (“General Provisions”) of the Maywood Municipal Code is hereby amended to read as follows:
B. Public Nuisance. In addition to the penalties provided by this Section, Aany violation of any provision of this Code, any ordinance of the City, any rule or regulation promulgated pursuant to any ordinance or provision of this Code, or any approval or permit issued pursuant to this Code, shall be deemed a public nuisance and may be summarily abated by the City by any and all means (civil, administrative, and/or equitable) as provided by law or in equity. All remedies provided herein shall be cumulative and not exclusive. may be prosecuted as a misdemeanor, as an infraction, or as a civil administrative action in the discretion of the city attorney or prosecutor.
Section 3. Section 3-1.102(b) (“License: Required”) of Article 1 (“General Provisions”) of Chapter 1 (“Business Licensing”) of Title 3 (“Finance”) of this Code is hereby amended to read as follows:
LEGISLATIVE DIGEST OF MUNICIPAL CODE REVISIONS
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(b) Any person violating any of the provisions of the herein title or knowingly or intentionally misrepresenting to any officer or employee of the city any material fact in procuring or any license or permit provided for in this Code shall be deemed guilty of an infraction misdemeanor, punishable in accordance with the provisions of Section 1-2.01 of this Code. Any person failing to comply with this Article shall continue to be responsible for the payment of any license fees, interest, and/or penalties due the City All remedies prescribed herein shall be cumulative, and the use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions of this Code.
Section 4. Section 4-8.11 (“Violations”) of Chapter 8 (“Alarm Systems”) of Title 4 (“Public Safety”) of this Code is hereby amended to read as follows:
(a) Any person violating the provisions of this chapter, excluding Sections 4-8.02 (e) and 4-8.05 hereof, shall be guilty of an infraction punishable by a fine of One Hundred and No/100th ($100.00) Dollars. (ab) In addition to any other penalty authorized by law, Aany alarm installed or maintained in violation of this chapter is declared to be a public nuisance and may be abated as provided by law.
Section 5. Section 5-25.04(b) (“Enforcement – Penalty for Violation”) of Chapter 25 (“Sales of Personal Property in Residential Zones”) of Title 5 (“Public Welfare, Morals, and Conduct”) of this Code is hereby amended to read as follows:
(b) Penalty for violation
(1) Any person violation any of the provisions of this
subsection is guilty of an infraction.
(2) Any person convicted of an infraction under the
provisions of this subsection is punishable upon a first offense by a fine of not more than twenty-five and
no/100ths ($25.00) dollars, and for a second conviction within a period of one (1) year by a fine of not more than fifty and no/100ths ($50.00) dollars, and for a third or any subsequent conviction within a period of one (1) year by a fine of not more than one hundred and no/100ths
($100.00) dollars.
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(13) In addition to any other penalty authorized by law, Vviolators will shall also forfeit any permit issued under this chapter and the right to seek a permit hereunder for one (1) year from the date of the violation.
Section 6. Section 5-42.03 (“Enforcement”) of Chapter 42 (“Smoking Prohibited in Parks and Recreation Areas”) of Title 5 (“Public Welfare, Morals, and Conduct”) of this Code is hereby amended to read as follows:
(a) Each separate violation of this chapter is an infraction punishable by:
(1) A fine not to exceed One Hundred and no/100ths
($100.00) dollars for the first violation.
(2) A fine not to exceed Two Hundred and no/100ths
($200.00) dollars for the second violation of this chapter within one (1) year.
(3) A fine not to exceed Five Hundred Fifty and
no/100ths ($500.00) dollars for each additional violation of this chapter within one (1) year.
(ab) Punishment under this section Chapter shall not preclude punishment pursuant to Health and Safety Code Section 13002, Penal Code Section 374.4 or any other law proscribing the act of littering. Nothing in this section Chapter shall preclude any person, corporation or governmental entity from seeking any other remedies, penalties or procedures provided by law whether civil or criminal.
Section 7. Section 6-10.07 (“Enforcement”) of Chapter 10 (“Urban Storm Water Mitigation, Management, and Discharge”) of Title 6 (“Sanitation and Health”) of this Code is hereby amended to read as follows:
(a) Whenever necessary to make an inspection to enforce any of the provisions of this chapter or whenever an authorized enforcement officer has reasonable cause to believe that there exists in any building or upon any premises any condition which constitutes a violation of the provisions of this chapter, the officer may, upon consent or upon obtaining an inspection warrant, enter such building or premises at all reasonable times to inspect the same or perform any duty imposed upon the officer by this chapter.
LEGISLATIVE DIGEST OF MUNICIPAL CODE REVISIONS
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(b) Routine or area inspections shall be based upon such reasonable selection process as may be deemed necessary to carry out the objectives of this chapter, including but not limited to, random sampling and/or sampling in areas with evidence of storm water contamination, discharges of nonstorm water into the City's storm drain system, discharges which are not pursuant to an NPDES permit or similar factors. (c) For the first failure to comply with any provision of this chapter, the City Manager, or his or her designee, shall may issue to the person believed to be the violator, a written notice, which includes the following:
(1)A statement specifying the violation committed;
(2)A specified time period within which the affected person shall correct the failure or file a written notice disputing the notice of violation;
(3)A statement of the penalty for continued noncompliance (d) Each subsequent failure to comply with any provision of this chapter following written notice issued pursuant to subsection (c) of this section, shall constitute an infraction misdemeanor punishable as provided in Section 1-2.04 of the Maywood Municipal Code. Each day during which a person fails to comply with the provisions of this chapter following written notice shall constitute a separate offense.
(e) A violation of any provision of this chapter is declared a public nuisance, and the City Attorney is authorized to abate such violation by means of a civil action.
(f) The penalties and remedies established by this section shall become accumulative.
Section 8. Section 8-16.01 (“Temporary Structures, Canopies and Similar Uses”) of Chapter 16 (“Temporary Structures and Canopies”) of Title 8 (“Building Regulations”) of this Code is hereby amended to read as follows:
Temporary structures as defined by Section 2020.200 of the Zoning Ordinance are not permitted in any zoning land use designation where visible from the public right-of-way except pursuant to this section. The definition of temporary structure shall also include any structure which is covered by a tarpaulin,
LEGISLATIVE DIGEST OF MUNICIPAL CODE REVISIONS
-6-
or a tarpaulin which is suspended by any means which is used for shelter purposes.
Professionally manufactured appropriately sized canopies and tarpaulin covers designed for shelter of vehicles or outdoor activities and used in the manner for which they were designed, may be maintained on a long-term basis in driveways and approved parking areas of front yards, side yards and rear yards for the cover of vehicles, so long as they are properly maintained in safe condition, do not become deteriorated, and do not protrude into the front yard setback area from the front of the building structure by more than three (3′) feet.
Except as provided above, temporary structures visible from the public right-of-way such as canopies or tarpaulin covers, shall not be utilized for longer than forty-eight (48) consecutive hours, once a month in any calendar year on any lot within the City.
Violation of this section may be enforced by any means legally available to the City, including as set forth in Chapter 2 (“Penalty Provisions”) of Title 1 (“General Provisions”) of this Code, as that Chapter may be amended from time to time citation as an administrative violation or an infraction.
Section 9. The following sections and subsections are hereby repealed and deleted in their entirety:
(a) Section 5-22.05 (“Littering – Violation: Infraction”); and, (b) Section 5-30.02 (“Consumption of Alcoholic Beverages – Violation:
Infraction”).
SECTION 10: Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Ordinance or any part thereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional.
LEGISLATIVE DIGEST OF MUNICIPAL CODE REVISIONS
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SECTION 11: Effective Date. This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days after passage and adoption.
SECTION 12: Certification and Publication. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published or posted in the manner prescribed by law.
AGENDA REPORT
CITY OF MAYWOOD
AGENDA ITEM NO. 10.
DATE: May 27, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JENNIFER VASQUEZ, CITY MANAGER
BY: MIGUEL LEON, DEPUTY CITY CLERK/ASSISTANT TO THE CITY MANAGER SUBJECT: CONSIDERATION OF APPROVAL OF AGREEMENTS WITH IBE DIGITAL FOR
CITYWIDE MANAGED PRINT SERVICES AND AUTHORIZATION OF XEROX COPIER
EQUIPMENT BUYOUT
RECOMMENDATION:
It is recommended that the City Council:
1. Approve agreements with IBE Digital for citywide managed print services for a five-year/60-month term, utilizing Sourcewell Contract No. 112124-KON, in an amount not-to-exceed $51,290.40, plus applicable taxes, overage charges, and adjustments allowed under the agreement;
2. Authorize the City Manager, or designee, to execute all necessary agreements and related documents, subject to final review and approval by the City Attorney;
3. Authorize the buyout of the City’s existing Xerox copier equipment in the amount of $5,858.84, or the updated buyout amount if the quote must be refreshed prior to payment, with eligible buyout costs to be reimbursed by IBE Digital at no cost to the City; and
4. Authorize staff to coordinate the transition, removal, cancellation notices, and data sanitization of the existing Xerox copier/printer equipment.
BACKGROUND:
The City currently utilizes Xerox copier equipment through QDoxs/Xerox, including a Xerox VersaLink B7035, Serial No. 2DA804857, and a Xerox AltaLink B8170, Serial No. HHZ761667. The current Xerox equipment lease is scheduled to expire on September 30, 2026. The City has received cancellation instructions for the existing Xerox equipment and related service agreements, as well as a buyout quote in the amount of $5,858.84.
In March 2026, IBE Digital conducted a print assessment of the City’s copier and printer environment.
Following the assessment, IBE Digital provided a presentation and proposal outlining options to modernize the City’s managed print services.
DISCUSSION:
The IBE Digital assessment found that the City’s current print environment includes multiple copier and desktop printer devices, multiple vendors, and several billing sources for copier lease, service, usage/overage billing, fax subscription, and toner purchases. The assessment identified an average monthly print volume of approximately 13,796 pages and found that unmanaged desktop printers create additional cost, service, and administrative challenges because they are not covered under a centralized managed print service model.
Staff reviewed the options presented by IBE Digital and recommends moving forward with the option that centralizes printing through three Konica Minolta bizhub devices: one C651i, one C361i, and one C3351i. The proposed agreement is for a 60-month term, with an annual base payment of $10,258.08, plus applicable taxes, quarterly meter readings, monthly image allowances, and a fair market value purchase option at the end of the term.
The assessment estimates that the recommended option would reduce the City’s monthly print cost from approximately $1,311.42 to approximately $854.84, resulting in estimated annual savings of approximately $5,478.96.
Staff recommends procuring the proposed managed print services through Sourcewell Contract No. 112124-KON, a competitively solicited cooperative purchasing contract for Konica Minolta products and services. IBE Digital, legally identified as I Copy Inc., DBA IBE Digital, is an authorized dealer under the Sourcewell contract and would be responsible for equipment, installation, maintenance, supplies, and ongoing support.
In connection with the transition, staff recommends authorizing the buyout of the existing Xerox copier equipment in the amount of $5,858.84, or the updated buyout amount if the quote must be refreshed prior to payment. IBE Digital has confirmed that it will provide transition assistance, including letter of intent templates, equipment removal, data sanitization, return coordination, and reimbursement of eligible buyout invoices upon approval of final amounts.
If approved, staff will coordinate with IBE Digital to begin implementation following execution of the agreements. IBE Digital has identified a target deployment timeline of approximately 30 days from the signed agreement, subject to final scheduling, equipment availability, installation coordination, and City operational needs.
LEGAL REVIEW:
The City Attorney has reviewed this report.
FISCAL IMPACT:
The proposed IBE Digital agreement is for a five-year/60-month term. The annual base payment is $10,258.08, plus applicable taxes, for a full 60-month base amount of $51,290.40, plus applicable taxes, overage charges, and any adjustments allowed under the final agreements.
The existing Xerox copier equipment buyout is currently quoted at $5,858.84, or the updated amount if the quote must be refreshed prior to payment. IBE Digital has provided written confirmation that it will reimburse eligible buyout invoices upon approval of final amounts, excluding any unpaid lease or maintenance charges incurred during the City’s use of the equipment.
Description Amount
Annual Base Payment $10,258.08, plus applicable taxes
Equivalent Monthly Base Cost $854.84, plus applicable taxes Full 60-Month Base Amount $51,290.40, plus applicable taxes Xerox Buyout Quote $5,858.84, reimbursable by IBE Digital Estimated Annual Savings $5,478.96
There is sufficient budget available under this lease to cover the proposed new IBE Digital agreement.
ATTACHMENT(S)
1. IBE Digital City of Maywood Presentation
2. IBE Digital City of Maywood Print Assessment Appendix
3. IBE CPI FMV Agreement - City of Maywood 2026
4. IBE Maintenance Agreement City of Maywood
5. Sourcewell Contract No. 112124-KON - IBE Digital CA
6. Sourcewell Dealer Participation Agreement for I Copy Inc., DBA IBE Digital
7. City of Maywood Cancellation Letter -QDoxs/Xerox Cancellation Instructions
8. City of Maywood - PEAC Solutions Buyout Quote
About Us
The ibe Story
40+
Years of Service
Founded 1986, family-owned under
President Ron Varing
MBE Certified
Minority Business Enterprise
NMSDC certified — trusted by public
agencies throughout SoCal
LA, OC & SB
Regional Coverage
Offices in Garden Grove and Goleta, CA
97.1%
NPS Score (2025)
8-year Konica Minolta Pro-Tech Award
recipient
Ron Varing
Founder & President
[email protected]
ibe 01
April 2026
Your Success.
Our Solutions.
Cutting-Edge Technology that Makes Sense
APPENDIX A:
Configurations
Average monthly total pages 13,796
Average monthly B&W pages 11,516
Average monthly color pages 2,280
Overall color share 16.50%
Copier share of total volume 77.30%
Desktop share of total volume 22.70%
Highest-volume device Front Office (6,768 pages/mo)
Highest-volume site City Hall (13,180 pages/mo)
Print Assessment Findings - Usage
Metrics:
*most expensive job types (color) are only run on
the least cost efficient devices
Site & Location Current Model
Average Monthly
Volume
(past 12 mos)
Current Average
Monthly Investment
Proposed Model
City Hall- Front Office Xerox AltaLink B8170 BW: 6,768 $486.46 Konica Minolta bizhub
C651i
City Hall- Finance Xerox Versalink B7035 BW: 3,900 $214.45 Konica Minolta bizhub
C361i
Copiers - Overview
Site & Location Current Model Average Monthly Volumes
Current Average
Monthly Investment
Proposed Model
CH: Front Office HP Color Laserjet Pro M255dw BW: 146 / Color: 522 $136.42 REMOVE CH: City Manager’s Office HP Color Laserjet Pro M452dn BW: 160 / Color: 33 $14.63 Konica Minolta bizhub C3301i CH: Director of Finance HP Color Laserjet Pro M452dn BW: 12 / Color: 215 $43.42 Konica Minolta bizhub C3301i CH: Deputy City Clerk HP Color Laserjet Pro M255dw BW: 241 / Color: 362 $101.48 Konica Minolta bizhub C3301i CH: HR Manager HP Color Laserjet Pro M255dw BW: 54 / Color: 223 $57.86 Konica Minolta bizhub C3301i CH: Senior Accountant HP Laserjet Pro 400 color M451dn BW: 114 / Color: 429 $128.15 Konica Minolta bizhub C3301i CH: Finance, Back Office HP Color Laserjet Pro M452dn BW: 1 / Color: 0 (inoperable) $0.05 REMOVE CH: Council Conference Room HP Laserjet Pro MFP M29w BW: 0 $0.00 REMOVE CH: Parking / Code Enforcement HP Laserjet M402n BW: 82 (Estimate) $4.76 Konica Minolta bizhub 4000i Public Works: Jerry’s Desk HP Color Laserjet Pro M255dw BW: 101 / Color: 495 $127.53 Konica Minolta bizhub C3321i Public Works: Alex’s Desk HP Laserjet Pro M404dn BW: 19 $0.91 Konica Minolta bizhub 4000i Printers - Overview
Site & Location Current Model
Average Monthly
Volumes
Current Average
Monthly
Investment
Proposed Model
CH: Deputy Director of
Planning
NONE, requesting color 0 $0.00
Konica Minolta bizhub
C3301i
Printers - Overview
Additional Recommendation: Color Desktop Printer
requested by Deputy Director of Planning
Quantity Description
2 QTY 1 Konica Minolta bizhub C651i
QTY 1 Konica Minolta bizhub C361i
Includes Delivery, Installation, Training, Service+Supplies Plan, and Removal of Old Equipment
Copiers: Our Solution - Option 1
Konica Minolta bizhub C361i
36 prints per minute Color Copier
2 Universal Paper Feed Cabinets,
High Capacity Tray, Power Filter
50-Sheet Staple Finisher, Hole Punch Kit
Searchable PDF/OCR Scanning,
Bitdefender Antivirus, Dual Scan Feeder
Automated Supply Replenishment
Equipment: Service:
Service & Supplies - Front Office
B&W Overage
Cost
$0.00669
Color Overage
Cost
$0.044
B&W Monthly
Allotment
7,000
Color Monthly
Allotment
1,050
*A service contract with IBE Digital includes all parts, labor, service calls and supplies.
Excludes paper, staples, and taxes. Service rates subject to 10% annual increase Accounting/Finance
Service & Supplies - Accounting
B&W Overage
Cost
$0.008
Color Overage
Cost
$0.055
B&W Monthly
Allotment
4,000
Color Monthly
Allotment
225
Front Office Konica Minolta bizhub C651i
65 prints per minute Color Copier
2 Universal Paper Feed Cabinets,
High Capacity Tray, Power Filter
50-Sheet Staple Finisher, Hole Punch Kit
Searchable PDF/OCR Scanning,
Bitdefender Antivirus, Fax-Kit
Intelligent Media Sensor, Dual Scan Feeder
Automated Supply Replenishment
WIDTH D EPTH HEIGHT
35.61 inches 27.1 inches 47.8 inches
11 x 17
3500
PAPER SIZE MAX PAPER CAPACITY (80g/m )
2 WIDTH D EPTH HEIGHT
35.61 inches 27 inches 41 inches
11 x 17
3500
PAPER SIZE MAX PAPER CAPACITY (80g/m )
2
Quantity Description
9 QTY 6 Konica Minolta bizhub C3301i
QTY 2 Konica Minolta bizhub 4000i
QTY 1 Konica Minolta bizhub C3321i
Includes Delivery, Installation, Training, Service+Supplies Plan, and Removal of Old Equipment
Printers: Our Solution - Option 1
Konica Minolta bizhub 4000i
42 prints per minute B&W Single-Function Printer
Power Filter
Equipment: Service:
Service & Supplies - All Printers (Pooled/Blended)
B&W Overage Cost
$0.02025
Color Overage Cost
$0.09495
Monthly Allotment
2,725
Color Monthly Allotment
2,120
*A service contract with IBE Digital includes all parts, labor, service calls and supplies.
Excludes paper, staples, and taxes. Service rates subject to 10% annual increase Parking/Code Enforcement, Public Works (Alex’s Desk)
City Manager, Director of Finance, Deputy Director of Planning, Deputy City Clerk, HR Manager, Senior Accountant
Konica Minolta bizhub C3301i
35 prints per minute
Color Single-Function Printer
Power Filter
Automated Supply Replenishment
(Senior Accountant: Wireless +
Bluetooth)
WIDTH D EPTH HEIGHT
16.5 inches 20.8 inches 18.6 inches
8.5" x 14"
1600
PAPERSIZE
MAX PAPER CAPACITY (80g/m )
2 WIDTH D EPTH HEIGHT
14.7 inches 15.3 inches 11.3 inches
4.1 x 5.8/8-1/2 x 14
570
PAPERSIZE MAX PAPER CAPACITY (80g/m )
2 WIDTH D EPTH HEIGHT
16.5 inches 20.7 inches 22.5 inches
Konica Minolta bizhub C3321i
35 prints per minute Color All-in-One Printer
Power Filter, Bitdefender Antivirus
Public Works (Jerry’s Desk)
8-1/2 x 14
500
PAPERSIZE MAX PAPER CAPACITY (80g/m )
2
Quantity Description
3 QTY 1 Konica Minolta bizhub C651i
QTY 1 Konica Minolta bizhub C361i
QTY 1 Konica Minolta bizhub C3351i
Includes Delivery, Installation, Training, Service+Supplies Plan, and Removal of Old Equipment
Copiers: Our Solution - Option 2
Konica Minolta bizhub C361i
36 prints per minute Color Copier
2 Universal Paper Feed Cabinets,
High Capacity Tray, Power Filter,
50-Sheet Staple Finisher, Hole Punch Kit
Searchable PDF/OCR Scanning, Bitdefender Antivirus, Dual Scan Feeder Automated Supply Replenishment
Equipment: Service:
Service & Supplies - C651i
B&W
Overage Cost
$0.0056
Color
Overage Cost
$0.044
B&W
Monthly
Allotment
9,000
Color
Monthly
Allotment
2,000
*A service contract with IBE Digital includes all parts, labor, service calls and supplies.
Excludes paper, staples, and taxes. Service rates subject to 10% annual increase Accounting/Finance
Service & Supplies - C361i
B&W
Overage
Cost
$0.00914
Color
Overage
Cost
$0.05
B&W
Monthly
Allotment
5,000
Color
Monthly
Allotment
1,000
Front Office Konica Minolta bizhub C651i
65 prints per minute Color Copier
2 Universal Paper Feed Cabinets,
High Capacity Tray, Power Filter
50-Sheet Staple Finisher, Hole Punch Kit
Searchable PDF/OCR Scanning,
Bitdefender Antivirus, Fax-Kit
Intelligent Media Sensor, Dual Scan Feeder
Automated Supply Replenishment
WIDTH D EPTH HEIGHT
35.61 inches 27.1 inches 47.8 inches
11 x 17
3500
PAPER SIZE MAX PAPER CAPACITY (80g/m )
2 WIDTH D EPTH HEIGHT
35.61 inches 27 inches 41 inches
11 x 17
3500
PAPER SIZE MAX PAPER CAPACITY (80g/m )
2 WIDTH
D EPTH
HEIGHT
27.6 inches
20.8 inches
47.7 inches
8-1/2 x 14
1500
PAPERSIZE MAX PAPER CAPACITY (80g/m )
2 Public Works: Konica Minolta bizhub C3351i
35 prints per minute Color Copier
3 Paper Feed Trays, Copy Desk
Searchable PDF/OCR Scanning, Bitdefender Antivirus,
Dual Scan Feeder, Power Filter
Automated Supply Replenishment
Service & Supplies - C3351i
B&W
Overage
Cost
$0.00914
Color
Overage
Cost
$0.05
B&W
Monthly
Allotment
500
Color
Monthly
Allotment
500
Service Protocols
A Step-by-Step Guide for Order Fulfillment, Service Requests, and Accessing Vendor Information for Your Equipment.
Requesting Toner
When placing a toner order for your machine, kindly
have your machine’s ID# ready (found on the front face
sticker of your machine) and provide your current B&W
and Color meter readings.
Contact IBE
To order toner or request service from an IBE technician, simply call our direct office line at (562) 921-0202.
We're here to assist you promptly!
For All Other Inquiries
Please contact our office at (562) 921-0202, Monday
to Friday, from 8:00 am to 5:00 pm.
Placing a Service Call
When submitting a service request, please have the
machine's ID# ready, provide a clear explanation of the issue, specify the hours of operation for your department, and include the name of the designated contact person.
STEP 4
STEP 2
STEP 3
STEP 1
E-Info Enhanced Client Portal
Fleet overview,
View service request history
View and pay invoices
View sales orders and shipments
Clean Planet Program
Reduce, Reuse, Recycle
Recycling is available for all Konica Minolta
consumables: toner cartridges, imaging
units, waste toner bottles, developer,
developer units and drums.
All products sent for recycling are tracked
and reported on, and sustainability
reporting is available to document the
positive environmental impact you are
making.
Register at cleanplanetprogram.com to
order free boxes and shipping labels.
Boxes must contain at least 10 printer
consumables.
Register and Ship for Free
Sustainability Reporting
Services
Managed Print Services
Cybersecurity Risk Assessment
Managed IT Services Unified Communications
Core IT Assessment Cloud Readiness Assessment
Uncover vulnerabilities,
Identify threats,
Develop security strategy
Free print assessment,
Customized print solutions,
Industry leading service
Proactive Monitoring,
Remote and onsite support,
Minimize downtime
Voice, Video, Message
Centralized and integrated,
All in the cloud
Evaluate infrastructure,
Identify gaps,
Roadmap for remediation
Assess current state,
Identify best-fit model,
Roadmap for migration
Proudly Serving
Sloan Aguilar-Varing
You Focus on People.
We’ll Handle the Tech.
Less Downtime. More Impact.
Your Success.
Our Solutions.
www.ibedigital.com
(562) 921-0202
11266 Monarch Street, Suite B
Garden Grove, CA 92841
360 Storke Rd,
Goleta, CA 93117
Vice President
[email protected]
Maxwell Drakeford
Business Development
[email protected]
Jennifer Perez
Public Affairs
[email protected]
ZP03A(TL)_0810 04/12/24 PAGE 1 OF 2 135
COST PER IMAGE AGREEMENT
AGREEMENT NO.:
CUSTOMER (“YOU” OR “YOUR”)
FULL LEGAL NAME: City of Maywood
ADDRESS: 4319 E Slauson Avenue, Maywood, CA 90270
EQUIPMENT AND PAYMENT TERMS SEE ATTACHED SCHEDULE
NOT
FINANCED
UNDER THIS
AGREEMENT
BEGINNING METER
READING
MONTHLY IMAGE
ALLOWANCE
EXCESS PER IMAGE
CHARGE (PLUS TAX)
TYPE, MAKE, MODEL NUMBER, SERIAL NUMBER,
AND INCLUDED ACCESSORIES B&W COLOR B&W COLOR B&W COLOR
Konica Minolta bizhub C651i 9,000 2,000 $0.00669 $0.044 Konica Minolta bizhub C361i 5,000 1,000 $0.008 $0.05
Konica Minolta bizhub C3351i
(Pricing compliant with Sourcewell Contract #112124-KON) 500 500 $0.0165 $0.055
TOTAL CONSOLIDATED MONTHLY IMAGE ALLOWANCE AND EXCESS PER IMAGE CHARGES (IF CONSOLIDATED) EQUIPMENT LOCATION: (4319 E Slauson Avenue, Maywood, CA 90270), (5600 Heliotrope Avenue, Maywood, CA 90270) METER FREQUENCY: Quarterly
TERM IN MONTHS: 60 ANNUAL BASE PAYMENT AMOUNT*: $10,258.08 (*PLUS TAX) PURCHASE OPTION*: Fair Market Value SECURITY DEPOSIT:
CONTRACT
THIS AGREEMENT IS NON-CANCELABLE AND IRREVOCABLE. IT CANNOT BE TERMINATED. PLEASE READ CAREFULLY BEFORE SIGNING. YOU AGREE THAT THIS AGREEMENT
AND ANY CLAIM RELATED TO THIS AGREEMENT SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE IN WHICH OUR (OR, IF WE ASSIGN THIS AGREEMENT, OUR ASSIGNEE’S) PRINCIPAL PLACE OF BUSINESS IS LOCATED AND ANY DISPUTE CONCERNING THIS AGREEMENT WILL BE ADJUDICATED IN A FEDERAL OR STATE COURT IN SUCH STATE. YOU HEREBY CONSENT TO PERSONAL JURISDICTION AND VENUE IN SUCH COURTS AND WAIVE TRANSFER OF VENUE. EACH PARTY WAIVES ANY RIGHT TO A JURY TRIAL.
CUSTOMER’S AUTHORIZED SIGNATURE
BY SIGNING THIS PAGE, YOU REPRESENT TO US THAT YOU HAVE RECEIVED AND READ THE ADDITIONAL TERMS AND CONDITIONS APPEARING ON THE SECOND PAGE OF THIS TWO-PAGE AGREEMENT. THIS AGREEMENT IS BINDING UPON OUR ACCEPTANCE HEREOF. (As Stated Above) X
CUSTOMER SIGNATURE PRINT NAME & TITLE DATE
OWNER (“WE”, “US”, “OUR”)
IBE Digital
OWNER SIGNATURE PRINT NAME & TITLE DATE
11266 Monarch St Ste B Garden Grove, CA 92841-1450
CERTIFICATE OF DELIVERY AND ACCEPTANCE
The Customer hereby certifies that all the Equipment: 1) has been received, installed, and inspected, and 2) is fully operational and unconditionally accepted.
SIGNATURE: X NAME AND TITLE: DATE:
ZP03A(TL)_0810 04/12/24 PAGE 2 OF 2 135
ADDITIONAL TERMS AND CONDITIONS
AGREEMENT. You want us to now provide you the equipment and/or software referenced herein, excluding equipment marked as not financed under this Agreement (“Equipment”) and you unconditionally agree to pay us the amounts payable under the terms of this agreement (“Agreement”) each period by the due date. This Agreement is binding upon our acceptance hereof and will begin on the date the Equipment is delivered to you or any later date we designate. If we designate a later commencement date, you agree to pay us an additional amount equal to the periodic payments due under this Agreement prorated for the period between the date the Equipment is delivered to you and the commencement date. We may charge you a one-time origination fee of $125.00. If we do not receive by the due date, at the remittance address indicated on your invoice, any amount payable to us, you will pay a late charge equal to: 1) the greater of ten (10) cents for each dollar overdue or twenty-six dollars ($26.00); or 2) the highest lawful charge, if less. Any security deposit will be returned upon full performance.
NET AGREEMENT. THIS AGREEMENT IS NON-CANCELABLE FOR THE ENTIRE AGREEMENT TERM. YOU AGREE THAT YOU ARE UNCONDITIONALLY OBLIGATED TO PAY ALL AMOUNTS DUE UNDER THIS AGREEMENT FOR THE ENTIRE TERM. YOU ARE NOT ENTITLED TO REDUCE OR SET-OFF AGAINST AMOUNTS DUE UNDER THIS AGREEMENT FOR ANY REASON.
IMAGE CHARGES AND OVERAGES. You are entitled to make the total number of images shown under Image Allowance (or Total Consolidated Image Allowance, if applicable) each period during the term of this Agreement. If you make more than the allowed images in any period, you will pay us an additional amount equal to the number of the excess images made during such period multiplied by the applicable Excess Per Image Charge. Regardless of the number of images made in any period, you will never pay less than the Base Payment Amount. You agree to provide us with the actual meter readings on any business day as designated by us, provided that we may estimate the number of images used if such meter readings are not received within five days after being requested. We will adjust the estimated charge for excess images upon receipt of actual meter readings. You agree that the Base Payment Amount and the Excess Per Image Charges may be proportionately increased at any time if our estimated average page coverage is exceeded. After the end of the first year of this Agreement and not more than once each successive twelve-month period thereafter, the Base Payment Amount and the Excess Per Image Charges (and, at our election, the Base Payment Amount and Excess Per Image Charges under any subsequent agreements between you and us that incorporate the terms hereof) may be increased by a maximum of 10% of the then existing payment or charge. Images made on equipment marked as not financed under this Agreement will be included in determining your image and overage charges.
EQUIPMENT USE. You will keep the Equipment in good working order, use it for business purposes only and not modify or move it from its initial location without our consent. You agree that you will not take the Equipment out of service and have a third party pay (or provide funds to pay) the amounts due hereunder. You will comply with all laws, ordinances, regulations, requirements and rules relating to the use and operation of the Equipment.
SERVICES/SUPPLIES. If we have entered into a separate arrangement with you for maintenance, service, supplies, etc. with respect to the Equipment, payments under this Agreement may include amounts owed under that arrangement, which amounts may be invoiced as one payment for your convenience. You agree that you will look solely to us for performance under any such arrangement and for the delivery of any applicable supplies.
SOFTWARE/DATA. Except as provided in this paragraph, references to “Equipment” include any software referenced above or installed on the Equipment. We do not own the software and cannot transfer any interest in it to you. We are not responsible for the software or the obligations of you or the licensor under any license agreement. You are solely responsible for protecting and removing any confidential data/images stored on the Equipment prior to its return for any reason.
LIMITATION OF WARRANTIES. EXCEPT TO THE EXTENT THAT WE HAVE PROVIDED YOU A WARRANTY IN WRITING, WE MAKE NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. YOU CHOSE ANY/ALL THIRD-PARTY SERVICE PROVIDERS BASED ON YOUR JUDGMENT. YOU MAY CONTACT US OR THE MANUFACTURER FOR A STATEMENT OF THE WARRANTIES, IF ANY, THAT THE MANUFACTURER IS PROVIDING. WE ASSIGN TO YOU ANY WARRANTIES GIVEN TO US.
ASSIGNMENT. You may not sell, assign, or sublease the Equipment or this Agreement without our written consent. We may sell or assign this Agreement and our rights in the Equipment, in whole or in part, to a third party without notice to you. You agree that if we do so, our assignee will have our assigned rights under this Agreement but none of our obligations and will not be subject to any claim, defense, or set-off that may be assertable against us or anyone else. Notwithstanding the foregoing, if we sell or assign this Agreement or our rights in the Equipment, we will retain our obligations under the Agreement.
LOSS OR DAMAGE. You are responsible for any damage to or loss of the Equipment. No such loss or damage will relieve you from your payment obligations hereunder. Except for claims, losses, or damages caused by our gross negligence or willful misconduct, you agree to indemnify us and our assignee, if applicable, against any claims, losses, or damages, including attorney fees, in any way relating to the Equipment or data stored on it. This indemnity will survive the expiration of this Agreement. In no event will we be liable for any consequential or indirect damages.
INSURANCE. You agree to maintain commercial general liability insurance acceptable to us. You also agree to: 1) keep the Equipment fully insured against loss at its replacement cost, with us named as loss payee; and 2) provide proof of insurance satisfactory to us no later than 30 days following the commencement of this Agreement, and thereafter upon our written request. If you fail to maintain property loss insurance satisfactory to us and/or you fail to timely provide proof of such insurance, we have the option, but not the obligation, to secure property loss insurance on the Equipment from a carrier of our choosing in such forms and amounts as we deem reasonable to protect our interests. If we secure insurance on the Equipment, we will not name you as an insured party, your interests may not be fully protected, and you will reimburse us the premium which may be higher than the premium you would pay if you obtained insurance, and which may result in a profit to us through an investment in reinsurance. If you are current in all of your obligations under the Agreement at the time of loss, any insurance proceeds received will be applied, at our option, to repair or replace the Equipment, or to pay us the remaining payments due or to become due under this Agreement, plus our booked residual, both discounted at 3% per annum.
TAXES. We own the Equipment. You will pay when due, either directly or by reimbursing us, all taxes and fees relating to the Equipment and this Agreement. Sales or use tax due upfront will be payable over the term with a finance charge.
END OF TERM. At the end of the term of this Agreement (or any renewal term) (the “End Date”), this Agreement will renew for an additional one-year period under the same terms unless a) we receive written notice from you, at least 60 days prior to the End Date, of your intent to return the Equipment, and b) you timely return the Equipment to the location designated by us, at your expense. If a Purchase Option is indicated above and you are not in default on the End Date, you may purchase the Equipment from us “AS IS” for the Purchase Option price. If the returned Equipment is not immediately available for use by another without need of repair, you will reimburse us for all repair costs. You cannot pay off this Agreement or return the Equipment prior to the End Date without our consent. If we consent, we may charge you, in addition to other amounts owed, an early termination fee equal to 5% of the amount we paid for the Equipment.
DEFAULT/REMEDIES. If a payment becomes 10+ days past due, or if you otherwise breach this Agreement, you will be in default, and we may require that you return the Equipment to us at your expense and pay us: 1) all past due amounts and 2) all remaining payments for the unexpired term, plus our booked residual, discounted at 3% per annum; and we may disable or repossess the Equipment and use all other legal remedies available to us. You agree to pay all costs and expenses (including reasonable attorney fees) we incur in any dispute with you related to this Agreement. You agree to pay us interest on all past due amounts at the rate of 1.5% per month, or at the highest rate allowed by applicable law, if less.
UCC. If we assign rights in this Agreement for financing purposes, you agree that this Agreement, in the hands of our assignee, is, or shall be treated as, a “Finance Lease” as that term is defined in Article 2A of the Uniform Commercial Code (“UCC”). You agree to forgo the rights and remedies provided under sections 507-522 of Article 2A of the UCC.
MISCELLANEOUS. This Agreement is the entire agreement between you and us relating to our providing and your use of the Equipment and supersedes any prior representations or agreements, including any purchase orders. Amounts payable under this Agreement may include a profit to us. The parties agree that the original hereof for enforcement and perfection purposes, and the sole “record” constituting “chattel paper” under the UCC, is either (a) the paper copy hereof bearing (i) the original or a copy of either your manual signature or an electronically applied indication of your intent to enter into this Agreement, and (ii) our original manual signature or (b) the copy of this Agreement executed by the parties and controlled by us or our assignee or custodian in accordance with the Electronic Signatures in Global and National Commerce Act or any similar state laws based on the Uniform Electronic Transactions Act and other applicable law as electronic chattel paper under the UCC. Upon execution, the parties agree to be bound to the terms hereof regardless of the medium or format in which this Agreement is maintained or controlled. If any provision of this Agreement is unenforceable, the other provisions herein shall remain in full force and effect to the fullest extent permitted by law. You authorize us to either insert or correct the Agreement number, serial numbers, model numbers, beginning date, and signature date. All other modifications to the Agreement must be in writing signed by each party.
DOCTypeNonApprops OnBaseOriginal
VP07NAMC_0426-Docu
NON-APPROPRIATION AGREEMENT AND ACKNOWLEDGEMENT
(Applicable to Governmental Entities Only)
This Non-Appropriation Agreement and Acknowledgement (“Acknowledgement”) relates to that certain agreement between Maywood, City of (“Governmental Entity”) and IBE Digital (“Company”), which agreement is identified in Company’s records as agreement number 3270137 (“Agreement”). All capitalized terms used in this Acknowledgement which are not defined herein shall have the meanings given to such terms in the Agreement. The undersigned, an authorized representative of Governmental Entity, hereby acknowledges and agrees as follows:
• As of the date of the Agreement: (a) the individual who executed the Agreement had full power and authority to execute the Agreement on Governmental Entity’s behalf; (b) all required procedures necessary to make the Agreement a legal and binding obligation against it were followed; (c) the Equipment will be operated and controlled by Governmental Entity and will be used for essential government purposes for the entire term of the Agreement; (d) that all payments due and payable for the current fiscal year are within the current budget and are within an available, unexhausted, and unencumbered appropriation; (e) Governmental Entity intends to pay all amounts payable under the terms of the Agreement when due, if funds are legally available to do so; (f) Governmental Entity’s obligations to remit amounts under the Agreement constitute a current expense and not a debt under applicable state law; (g) no provision of the Agreement constitutes a pledge of its tax or general revenues; and (h) Governmental Entity will comply with any applicable information reporting requirements of the tax code, which may include 8038-G or 8038-GC Information Returns. • If Governmental Entity exercises its right under applicable law to return the Equipment and terminate the Agreement on the last day of the fiscal period for which funds were available (without penalty or additional expense (other than the expense of returning the Equipment to the location designated by Company)), Governmental Entity’s Chief Executive Officer (or Legal Counsel) will deliver a certificate (or opinion) to Company at least thirty (30) days prior to the start of the fiscal period for which funds were not appropriated, certifying that (a) Governmental Entity is a state or a fully constituted political subdivision or agency of the state in which it is located; (b) funds have not been appropriated for the applicable fiscal period to pay amounts due under the Agreement; (c) such non-appropriation did not result from any act or failure to act by Governmental Entity; and (d) Governmental Entity has exhausted all funds legally available for the payment of amounts due under the Agreement. This paragraph only applies if, and to the extent that, state law precludes Governmental Entity from entering into the Agreement if the Agreement is deemed to constitute a multi-year unconditional payment obligation. If and to the extent that the items financed under the Agreement is/are software, the above-referenced certificate shall also include certification that the software is no longer being used by Governmental Entity as of the termination date.
• Company relied on this Acknowledgement as part of the Agreement.
A copy of this Acknowledgement containing Governmental Entity’s original or facsimile signature or other indication of its intent to agree to the terms set forth herein shall be enforceable for all purposes.
GOVERNMENTAL ENTITY’S AUTHORIZED SIGNATURE
(As Stated Above) X LesseeSignature LesseeName LesseeTitle LesseeDate
SIGNATURE NAME & TITLE DATE
DocTypeNonApprops
1 of 3
Maintenance and Support Agreement
Customer Information
Location Bill To
Company Name: Company Name:
Street Address: Street Address:
City: State: Zip: City: State: Zip:
Main Phone: Main Fax: Main Phone: Main Fax:
Key Operator’s Name: Location: Buyer’s Name: Title:
Key Operator’s Phone #: Key Operator’s Fax #: Buyer’s Phone #: Buyer’s Fax #:
Meter Read Contact Name: Meter Read Contact Email: Meter Read Contact Phone: Meter Read Contact Fax:
Tax Exempt? Yes No Seller’s Permit Number:________________ CA Resale Certificate Must Be Attached PO Required? Yes No PO Number:______________ PO Expiration Date: ______________ Individual PO Blanket PO PO Contact_______________ Email:______________ Phone:_____________ Equipment Covered and Pricing
Equipment Covered By This Agreement: Contract Term (Months):
Equipment Brand and
Model
Serial No: IBE’s
Equip. ID
Meters
Type
Start
Meters
Base
Charge
Copies
Included
Overage
Rates
Installation
Location
B&W
Color
B&W
Color
B&W
Color
B&W
Color
B&W
Color
Coverage/Billing Options
Coverage Options:
Select Options Supply Included Staples Included Freight Included Billing Options:
Initial Term in Months:
Flat Rate Frequency: Monthly Quarterly Annually
Meter Frequency: Monthly Quarterly Annually
Aggregate Volume:
Effective Date: On Install Date:_______________
Billing Date: Selected By IBE:______________ Preferred Date:_____________ ͺͺͺͺͺͺͺͺ
2 of 3
Terms and Conditions
GENERAL SCOPE OF COVERAGE: In consideration for the payment by customer of the maintenance charges set forth herein, except as provided herein, IBE Digital shall provide all labor, parts and materials required for the maintenance and minor repair of the equipment, set forth on the reverse side hereof, which adjustment and maintenance is caused by the Customer's normal, non-commercial use of the equipment. Damage to the equipment or components arising out of misuse, negligence, neglect or causes beyond IBE's reasonable control are not covered. Not included in the maintenance and support agreement unless stated otherwise are paper, staples, freight, and network support.
SERVICE CALLS: Service calls under this agreement will be performed during normal business hours at the installation address shown on this agreement. Travel and labor time for service calls after normal hours, on weekends and on holidays, if and when available, will be paid by Customer at the overtime rates in effect at the time the service call is made. Customer agrees to promptly notify IBE of any requests for service, by contacting the IBE Service Department. During the performance of IBE’s maintenance services, Customer agrees that IBE shall have the right to generate all copies/prints/faxes necessary to properly perform its service without being required to credit Customer's account. This agreement does not include mileage on service calls for customers outside of IBE 's normal service area. Service performed after the termination, expiration or non renewal of this agreement will be paid for by Customer on a "Per Call" basis at IBE 's then published rates. All on-site service calls are billed at a one-hour minimum and 15 minute increments thereafter. All phone support is billed in 15 minute increments.
CHARGES: The initial charge for maintenance under this agreement shall be the amount set forth on the reverse side hereof. Customer agrees to pay IBE up to $175.00 on the due date of the first payment to cover the expense of originating the agreement and delivery of the equipment. The maintenance charge may be changed annually to the then effective IBE rates.
Customer agrees to pay the total of all charges for maintenance during the initial term and any renewal term within 10 days of the due date or of the date on which IBE invoices Customer for such charges, whichever is earlier. IBE reserves the right to withhold service or supplies if any charges become past due, regardless of whether those charges are related to this Agreement or the equipment covered by this Agreement. Customer understands that alterations, attachments, or specification changes to the equipment may require an increase in maintenance charges and agrees to pay such charges promptly when due. IBE reserves the right to charge a processing/handling fee. Customer agrees that IBE may increase the base charge and overage rates each year during any term by an amount not to exceed 10%. Customer agrees that the base charge and overage rates may be proportionately increased at any time if our estimated average page coverage is exceeded. We will compare the actual quantity of supplies shipped to you against your inventory and the equipment meter reading(s). This comparison is based on the manufacturers published supply yield for 8 ½ x 11 images. You agree that we reserve the right to bill you for any increased supply usage in excess of the manufacturers published yield. Labor for the installation of memory upgrades or other upgrades and enhancements, or parts and supplies not provided by IBE, are not covered by this agreement and will be installed on a "Per Call" basis at IBE 's then published rates. Appropriate taxes will apply.
METER READINGS: Customer agrees to provide IBE true and accurate meter readings monthly and in any reasonable manner requested by IBE. If accurate meter readings are not provided, IBE reserves the right to estimate Customer's meter readings based upon previous meter readings and bill Customer based upon such estimates or send an IBE representative to visually inspect such meter readings, in which event Customer shall also pay IBE an additional charge for such site visit.
RECONDITIONING: In the event Customer's equipment cannot be properly maintained by IBE, due to the age or condition of the equipment, to perform on a reasonably consistent and good quality basis, Customer's equipment may need to be replaced or reconditioned. When, in its sole discretion, IBE determines reconditioning is necessary to keep the equipment in good working condition, IBE will submit to customer, an estimate of the reconditioning costs which will be in addition to the charge payable under this Agreement. If the customer does not authorize such reconditioning, IBE may discontinue service of the equipment, terminate this agreement, and refund the unused portion of the maintenance charge, if any, or give notice of its intention not to renew this agreement upon its expiration. Thereafter, service will be available on a "Per Call" basis at IBE 's published rates.
TERM, TERMINATION AND RENEWAL: This agreement shall become effective upon the proper execution of this Agreement by Customer and IBE, and shall continue for a minimum of 60 months, or the time period specified on the reverse side hereof, or shall continue until Customer has generated the maximum number of copies/prints/faxes shown on this agreement, whichever occurs first. This agreement shall automatically renew for successive similar periods or number of copies/prints/faxes unless written notice is received by the non-terminating party 30 days prior to the expiration date, as extended, or approximately 30 days prior to the expected generation of the maximum number of copies/prints/faxes, as extended. IBE reserves the right to modify the maximum number of copies/prints/ faxes in any renewal in a good faith attempt to approximate the number of copies/prints/faxes Customer would generate during the covered period. Notice of the election not to renew this agreement, shall be sent, by the terminating party to the non-terminating party, by IBE's regular address (If Customer is terminating party). Notwithstanding anything to the contrary, IBE may terminate this agreement at any time in the event (a) the equipment is modified, damaged, altered, serviced by personnel other than those employed by IBE, or if parts, supplies, accessories or components not authorized by IBE are fitted to or used in the equipment; or (b) if the Customer uses supplies other than IBE supplies and such supplies are defective or not acceptable for use in IBE equipment and cause abnormally frequent service calls or service problems. If there is a change to more than 10% of your original number of units, your CPC will be adjusted to the current IBE cost per page for the new mix of models. All other terms of the contract will remain in effect.
BREACH OR DEFAULT: If the customer does not pay all charges, billed under the terms of this Agreement, promptly, when due, in the event of a breach of any of the other terms of this Agreement, IBE may (a) refuse to service the equipment until remittance is made, (b) provide service on "Per Call" basis rates, (c) require C.O.D. payment in full at the time of service at IBE's "Per Call" basis rates, and (d) take any and all other actions as provided by law. Such remedies shall be cumulative, and the waiver of any one breach by Customer shall not be deemed a waiver of any other or subsequent breach.
PRORATION AND TRANSFERS: If the covered equipment is upgraded with equipment purchased from IBE, any unused portion of a paid Agreement may be prorated and applied toward a service program for the new equipment. This agreement may not be assigned by the Customer without IBE prior written consent. Customer specifically agrees that this Agreement shall not terminate upon Customer's election to sell, transfer or remove from service any equipment covered by this Agreement, unless IBE agrees, in writing, to terminate this Agreement prior to such sale, transfer or removal from service.
INSURANCE: During the term of this Agreement, Customer will keep the equipment insured against all risks of loss or damage in an amount not less than the replacement cost of the equipment, without deductible, and without co-insurance. Customer shall also obtain and maintain for the term of this Agreement, comprehensive public liability insurance covering both personal injury and property damage of at least $100,000 per person and $300,000 per occurrence for bodily injury and $50,000 for property damage. IBE shall be the sole named loss payee on the property insurance and shall be named as an additional insured on the public liability insurance. Customer will pay all premiums for such insurance and shall deliver proof of insurance coverage satisfactory to IBE. If Customer does not provide such insurance, Customer agrees that IBE has the right, but not the obligation, to obtain such insurance, and add an insurance fee to the amount due, on which IBE makes a profit.
MISCELLANEOUS: IBE expressly disclaims any duty as an insurer of the equipment herein and Customer shall pay for all costs or repair and parts or replacement of the equipment made necessary by any casualty, theft, or negligent act of Customer or Customer's Agents. Customer agrees to provide reasonable space and proper and sufficient electrical power as specified or required for each machine. IBE's technicians must be able to access the machine from all sides. Equipment relocation by IBE is not covered under this Agreement. This Agreement represents the entire Agreement between the parties and supersedes all prior oral and written proposals and communications. Customer shall pay all IBE costs and expenses (included, but not limited to legal fees and costs) incurred in the collection of any amount due to IBE, or incurred in the enforcement of IBE rights and remedies under this Agreement, whether or not legal action is instituted. In the event any amounts required to be paid by Customer under this Agreement are not paid when due, IBE may assess and collect a finance charge equivalent to
1.5% per month on all outstanding amounts. This Agreement shall be governed by and construed according to the laws of the State of California, and the jurisdiction and venue for any legal action shall be in the City and County of Los Angeles, California or Orange County, California. IBE reserves the right to provide compatible parts and supplies for printer fleet.
Customer Initials:_____________
Date Signed:________________
3 of 3
Authorization and Acceptance
Customer Authorization and Acceptance
Customer Signature:_____________________________________ Date Signed:_____________________________ Customer Print:_________________________________________ Title:____________________________________ IBE Digital Authorization and Acceptance
IBE Digital Signature:_____________________________________ Date Signed:_____________________________ IBE Digital Print:_________________________________________ Title:____________________________________
3/27/2025
Sourcewell #112124-KON – Dealer Participation Agreement (DPA) Dealer Alliance Number 24NJPA15716
Konica Minolta Business Solutions U.S.A., Inc. ("Konica Minolta") is pleased to offer I Copy Inc., DBA IBE Digital
the ability to act as a selling agent for the Konica Minolta awarded SOURCEWELL contract (hereinafter “SOURCEWELL” or “SOURCEWELL Contract”). Konica Minolta sees SOURCEWELL as an opportunity and have high expectations of a strong increase in business for both parties. SOURCEWELL Contract is extremely important to Konica Minolta on a national scale.
Konica Minolta wants to ensure that the undersigned dealer has a proper understanding of the requirements of the SOURCEWELL Contract and that Konica Minolta has provided all of the necessary information to the dealer in order to make the SOURCEWELL Contract a success for both parties.
This Dealer Participation Agreement ("DPA") is entered into between Konica Minolta and I Copy Inc., DBA IBE Digital
(herein referred to as “Dealer”), an
authorized Konica Minolta dealer pursuant to the terms of the agreement between the parties (the ”Dealer Agreement”).
With their respective signatures, the parties represent and warrant that each is authorized to execute and deliver this DPA to each other, that the person signing on behalf of such party is a duly authorized signatory of such party and that this DPA shall bind such party and is enforceable in accordance with its terms. With Dealer’s signature, the dealership agrees to abide by the terms and conditions of the SOURCEWELL terms and conditions and this DPA.
NOW THEREFORE, in consideration of the mutual covenants herein and other good and valuable consideration, receipt of which is hereby acknowledged, Konica Minolta and Dealer agree as follows.
1. Subject to the terms and conditions of this DPA and the Dealer Agreement, including, but not limited to matters of confidentiality, Konica Minolta authorizes Dealer to solicit and offer to sell Konica Minolta products and services to SOURCEWELL members pursuant to the terms of the SOURCEWELL Contract and thereafter accept Orders (as defined in Section 7) issued by SOURCEWELL members and to invoice and receive payment for items purchased by SOURCEWELL members or other qualifying entities.
2. Dealer may accept Orders for outright purchase or leased sales from Konica Minolta approved leasing partners of Konica Minolta products within Dealer's authorized territory as defined in the Dealer Agreement between Konica Minolta and Dealer, the terms of which are expressly incorporated herein.
3. Leasing is limited to partners approved by Konica Minolta.
4. All orders issued hereunder are subject to the provisions of this DPA.
5. Dealer shall use only Konica Minolta brand parts and supplies to service equipment placed under this DPA or this DPA may be terminated pursuant to Section 15.
6. Pricing: Under no circumstances can the Dealer offer any customer a price that is more than our published SOURCEWELL pricing. For opportunities over $100,000 the Dealer may submit a purchase price authorization (“PRA”) to obtain a more competitive response. The Dealer agrees to send a PRA, referencing the SOURCEWELL Contract, through their normal channel process. The 2% SOURCEWELL administrative fee (on hardware only) and any discounted pricing quoted by the Dealer, will come out of the Dealer’s gross margin on all non -standard SOURCEWELL pricing orders and special pricing requests. Any approved lower pricing provided will be used only for the opportunity specifically requested. If Konica Minolta products and services are billed by Dealer to an Entity at a price that is not in compliance with this DPA, the SOURCEWELL Contract or approved PRA, this DPA may be terminated.
7. Taxes: Dealer is responsible for paying all taxes, assessments, fees, premiums, permits and licenses required by law. The State’s real property or personal property taxes are the responsibility of the Dealer unless included in the lease rate utilized for the customer.
8. Audit: The Dealer agrees to maintain books, records documents, records, documents, and accounting procedures and practices relevant to the sales made hereunder for a minimum of six (6) years from the expiration date Docusign Envelope ID: CE81C8A4-843F-4447-9211-E8F0AE5D9475
3/27/2025
(including any extensions) of the order. Dealer agrees to fully cooperate with SOURCEWELL in auditing transactions under the Contract to ensure compliance with pricing terms, correct calculation and remittance of Administrative Fees, and verification of transactions as may be requested by a SOURCEWELL member or SOURCEWELL.
9. All hardware, solutions, supplies, services, and/or 3rd party items sold to any SOURCEWELL member must be acquired directly from Konica Minolta.
10. Ordering Specifications:
For hardware purposes the Dealer MUST place order for equipment & solutions via mykonicaminolta.com utilizing the KMAP+ alliance contract #24NJPA15716. Dealer may not place equipment under this program from their standard wholesale purchase inventory. If Konica Minolta Products not obtained via the Alliance KMAP contract above are sold by the Dealer to a SOURCEWELL member, this DPA will be terminated.
With each order, Dealer is required to submit Section 7(a)-(e) which shall collectively be referred to hereinafter as the “Order”:
a) Member purchase order
b) If leasing, signed Lease Agreement & Non-Appropriation Rider (if applicable) c) Maintenance contract
d) Completed, signed rebate worksheet
e) “Cash with Order” is available under this program
Above package should be emailed to:
[email protected]
Executed DPA and associated documents should be emailed to:
[email protected]
MPS Order Submittal and Reporting: To facilitate the setup of a MPS Contract:
a) Dealer places order for any items needed on mykonicaminolta.com and selects KMAP+ alliance contract #24NJPA15716.
b) Dealer submits the following documents to [email protected] a. Member purchase order
b. Maintenance PO
c. SOURCEWELL Attachment MPS Site Agreement
d. Tax Exempt Certificate
Above package should be emailed to: [email protected] The Order shall not be processed or deemed complete unless all the above referenced items have been received, accepted and deemed complete by Konica Minolta, at its sole discretion. Orders will be reviewed to ensure customer is an authorized member, equipment and maintenance pricing is concurrent to the SOURCEWELL Contract, the rebate worksheet is accurate and applies to all product sold to the member. Dealer understands it shall receive payment from the SOURCEWELL member and Dealer shall be responsible for all costs of collection.
As stated above, Solutions and 3rd party products listed in the SOURCEWELL catalog must be ordered through Konica Minolta online utilizing contract # 24NJPA15716. Solutions and 3rd party products are not included in the issued alliance pricing. The Dealer will need to input the appropriate item numbers while ordering online. The pricing will populate at LDN. If special pricing has been approved for these 3rd party items for the specific transaction, credit will be issued to the dealership or price adjustments will be made at time of Order depending on 3rd party manufacturer.
11. Authorized Dealer may charge SOURCEWELL member directly for maintenance services. It is the Dealer’s responsibility to assume Konica Minolta's obligations to provide installation, service, repair and/or maintenance of Konica Minolta products. Furthermore, in the event that the SOURCEWELL member has opted to enter into a lease agreement which requires that the equipment be returned to a third party leasing company at the end of the term Docusign Envelope ID: CE81C8A4-843F-4447-9211-E8F0AE5D9475
3/27/2025
of such lease, it shall be the Dealer’s responsibility to assume Konica Minolta’s obligations to return the equipment to the appropriate third party leasing company. Dealer may charge SOURCEWELL member the removal fees specified in the contract for return of equipment. Any amount in excess of the Return Fee shall be borne solely by Dealer.
12. Payment of Administrative Fee: A 2% administrative fee is charged to SOURCEWELL awarded vendors as a rebate on all contract hardware sales (“Administration Fee”). At time of Dealer hardware and software/solutions order, the Administration Fee will be added to the Order by Konica Minolta after review and approval of the rebate worksheet submitted with Order and will be charged when any of the items are shipped (even if there is a back order). Konica Minolta will invoice the Dealer for the applicable administrative fee and then Konica Minolta will pay SOURCEWELL. Administrative Fees are included in the SOURCEWELL member pricing and cannot be added as a line item on the customer’s invoice.
a. Large Deal Exception: Hardware revenue of the total transaction >$250K, fee = 1%
13. Dealer certifies that its activities and performance hereunder will be in accordance with Konica Minolta’s installation and service policies and procedures and all terms and conditions of this DPA, including without limitation, the prices to be offered, the extension of audit rights to SOURCEWELL and the maintenance of a system for reporting sales made under Konica Minolta's SOURCEWELL, including date of sale, agency to which sale was made, product and model sold, quantity of each product and model acquired, pricing at which items were sold including discounts and all other significant sales data, or as otherwise directed by Konica Minolta.
14. Authorized Territory: Dealer may only accept purchase orders; service and invoice within their Konica Minolta authorized territory as defined in the Dealer Agreement, the terms of which are expressly incorporated herein.
15. Sale of Dealer to Another Manufacturer: In the event that Dealer is purchased by a competing manufacturer, Dealer agrees to discontinue the Alliance SOURCEWELL Contract to eligible entities and members.
16. Dealer has reviewed and read the SOURCEWELL Contract located at the following link: https://www.sourcewellmn.gov/cooperative-purchasing/112124-kon and agrees to abide by the terms and conditions of Konica Minolta's SOURCEWELL Contract.
17. If it is found that the Dealer has not complied with the SOURCEWELL Contract terms and conditions in any way, this DPA may be immediately terminated, and the Dealer will be responsible for any and all costs or penalties assessed in association with the contract misrepresentation. Dealer is responsible for return of equipment costs back to Dealer at the end of the lease term.
18. Konica Minolta or Dealer may terminate this DPA without cause upon thirty (30) days written notice. Dealer’s performance of services hereunder, may be terminated or assigned to another Konica Minolta authorized dealer, a third party or performed by Konica Minolta itself, in whole or in part, as follows: (a) automatically should Dealer cease to be an authorized Konica Minolta dealer; or (b) upon fifteen (15) days written notice, for a material breach by Dealer of any term of this DPA, which material breach remains uncured following Konica Minolta's delivery to Dealer of written notice describing the material breach in reasonable detail. Termination shall be affected by delivery to Dealer of a notice of termination specifying the extent to which performance of services is terminated and the date upon which such termination becomes effective. After receipt of the notice, and except as otherwise directed by Konica Minolta, Dealer shall, as applicable:
a) stop work on the date and to the extent specified in the notice; b) place no further orders, except as may be necessary for completion of the portion of the services that is not terminated, if any;
c) terminate all orders to the extent that they relate to the performance of the portion of the services terminated by the notice;
d) settle all outstanding liabilities and all claims arising out of the termination of orders so terminated; e) transfer and deliver to Konica Minolta any completed or partially completed work and material produced or acquired in connection with the portion of the Order terminated; f) submit a final invoice to Konica Minolta within 60 (sixty) calendar days after receipt of the notice; g) dispose of all property, facilities, and material in accordance with instructions issued by Konica Minolta; and h) complete performance of the portion of the services, which was not terminated, if any. i) Furthermore, pursuant to your Dealer Agreement with Konica Minolta, in no event shall Konica Minolta be liable to Dealer for any special, incidental or consequential damages of any type or nature whatsoever as a result of said termination.
19. Upon termination or non-renewal of this DPA, with or without cause, Dealer will issue a final invoice to SOURCEWELL member(s) for any amounts owed up to the date of termination or non-renewal, and cease all communications and work under SOURCEWELL member(s) hereunder. Upon termination or non-renewal of this Docusign Envelope ID: CE81C8A4-843F-4447-9211-E8F0AE5D9475
3/27/2025
DPA, neither party shall be liable to or have any responsibility to the other party for payment of any compensation, damages, or other amounts of money, including, but not limited to, compensation based on good will, expenditures incurred or investments made by Dealer, or relating to the termination or non -renewal of this DPA in the event that either party elects not to renew or to terminate this DPA. In no event shall either party be liable for consequential, incidental or punitive damages. Further, each party agrees the other Party's aggregate liability to such party for any direct, first-party damages (i.e. excluding damages arising from or in connection with a third party claim) will be limited to amounts paid and payable during the term hereof.
20. Dealer agrees to indemnify, defend and hold Konica Minolta harmless from any and all third party claims for (1) injuries or death to persons or damage to tangible personal property or real property to the extent resulting directly from Dealer's negligence or willful misconduct; or (2) breaches of confidentiality laws or regulations (including data privacy and security laws) applicable to Dealer's business. Dealer further agrees to be responsible for the full amount of any penalties, fees or claims which Konica Minolta is required to pay to the SOURCEWELL members or a 3rd party, but only to the extent such penalties or claims are the direct result of Dealer's violation of terms and conditions hereof, or failure to accurately report sales.
21. This DPA constitutes the entire agreement between Konica Minolta and Dealer regarding participation in Konica Minolta's SOURCEWELL Contract and supersedes all prior or contemporaneous oral or written communication, understandings, negotiation, discussions or agreements with respect to the subject matter hereof, all of which are merged herein. This DPA shall not be modified, amended, or in any way altered except by an instrument in writing signed by an authorized officer of Konica Minolta and by Dealer. Dealer may not assign this DPA without Konica Minolta express written consent.
22. This DPA shall be governed by the laws of the state of New York.
IN WITNESS WHEREOF, the parties have caused this DPA to be signed by their duly authorized representative of the date set forth below.
Dealer Konica Minolta Business Solutions U.S.A., Inc
Dealership Name:
I Copy Inc., DBA IBE Digital
Print Name: Kristen McKenna
Address:
11266 Monarch St. Suite B
Title: Director, Government Contracts
City, State, Zip:
Garden Grove, CA 92841
Signature:
Print Name: Date:
Signature:
Date:
Sloan Aguilar-Varing
6/24/25
Docusign Envelope ID: CE81C8A4-843F-4447-9211-E8F0AE5D9475 6/26/2025
112124-KON
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MASTER AGREEMENT #112124
CATEGORY: ŽƉŝĞƌƐ͕WƌŝŶƚĞƌƐ͕ĂŶĚDƵůƟ-&ƵŶĐƟŽŶĞǀŝĐĞƐǁŝƚŚZĞůĂƚĞĚ^ƵƉƉůŝĞƐ͕ ĐĐĞƐƐŽƌŝĞƐ͕ĂŶĚ^ĞƌǀŝĐĞƐ
SUPPLIER: <ŽŶŝĐĂDŝŶŽůƚĂƵƐŝŶĞƐƐ^ŽůƵƟŽŶƐh͘^͕͘͘/ŶĐ͘ This Master Agreement (Agreement) is between Sourcewell, ĂDŝŶŶĞƐŽƚĂƐĞƌǀŝĐĞĐŽŽƉĞƌĂƟǀĞlocated at 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and Konica Minolta Business ^ŽůƵƟŽŶƐh͘^͕͘͘/ŶĐ͕͘ϭϱϵϱ^ƉƌŝŶŐ,ŝůůZŽĂĚ͕^ƵŝƚĞϰϭϬ͕sŝĞŶŶĂ͕sϮϮϭϴϮ (Supplier).
Sourcewell is a ůŽĐĂůŐŽǀĞƌŶŵĞŶƚĂŶĚƐĞƌǀŝĐĞĐŽŽƉĞƌĂƟǀĞĐƌĞĂƚĞĚƵŶĚĞƌƚŚĞůĂǁƐŽĨƚŚĞ^ƚĂƚĞŽĨ DŝŶŶĞƐŽƚĂ;DŝŶŶĞƐŽƚĂ^ƚĂƚƵƚĞƐ^ĞĐƟŽŶϭϮϯ͘ϮϭͿŽīĞƌŝŶŐ a CŽŽƉĞƌĂƟǀĞPurchasing Program to eligible ƉĂƌƟĐŝƉĂƟŶŐŐŽǀĞƌŶŵĞŶƚĞŶƟƟĞƐ.
hŶĚĞƌƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚĞŶƚĞƌĞĚwith Sourcewell, Supplier will provide /ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐ to WĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐƚŚƌŽƵŐŚ^ŽƵƌĐĞǁĞůů͛ƐCŽŽƉĞƌĂƟǀĞPurchasing Program. ƌƟĐůĞϭ͗
General Terms
dŚĞ'ĞŶĞƌĂůdĞƌŵƐŝŶƚŚŝƐƌƟĐůĞϭĐŽŶƚƌŽůƚŚĞŽƉĞƌĂƟŽŶŽĨƚŚŝƐ Master Agreement between Sourcewell ĂŶĚ^ƵƉƉůŝĞƌĂŶĚĂƉƉůLJƚŽĂůůƚƌĂŶƐĂĐƟŽŶƐĞŶƚĞƌĞĚďLJ^ƵƉƉůŝĞƌĂŶĚWĂƌƟĐŝƉĂƟŶŐ ŶƟƟĞƐ͘^ƵďƐĞƋƵĞŶƚ
ƌƟĐůĞƐƚŽƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚĐŽŶƚƌŽůƚŚĞƌŝŐŚƚƐĂŶĚŽďůŝŐĂƟŽŶƐĚŝƌĞĐƚůLJďĞƚǁĞĞŶ^ŽƵƌĐĞǁĞůůĂŶĚ ^ƵƉƉůŝĞƌ;ƌƟĐůĞ ϮͿ͕ĂŶĚďĞƚǁĞĞŶ^ƵƉƉůŝĞƌĂŶĚWĂƌƟĐŝƉĂƟŶŐ ŶƟƚLJ;ƌƟĐůĞϯͿ͕ƌĞƐƉĞĐƟǀĞůLJ͘dŚĞƐĞƌƟĐůĞϭ
'ĞŶĞƌĂůdĞƌŵƐĐŽŶƚƌŽůŽǀĞƌĂŶLJĐŽŶŇŝĐƟŶŐƚĞƌŵƐ͘tŚĞƌĞƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚŝƐƐŝůĞŶƚŽŶĂŶLJƐƵďũĞĐƚ͕ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJĂŶĚ^ƵƉƉůŝĞƌƌĞƚĂŝŶƚŚĞĂďŝůŝƚLJƚŽŶĞŐŽƟĂƚĞŵƵƚƵĂůůLJĂĐĐĞƉƚĂďůĞƚĞƌŵƐ. 1) WƵƌƉŽƐĞ͘ Pursuant to Minnesota law, tŚĞ^ŽƵƌĐĞǁĞůůŽĂƌĚŽĨŝƌĞĐƚŽƌƐŚĂƐĂƵƚŚŽƌŝnjĞĚ ĂŽŽƉĞƌĂƟǀĞ Purchasing Program designed to provide PĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐǁŝƚŚĂĐĐĞƐƐƚŽĐŽŵƉĞƟƟǀĞůLJĂǁĂƌĚĞĚ
ĐŽŽƉĞƌĂƟǀĞƉƵƌĐŚĂƐŝŶŐagreements͘dŽĨĂĐŝůŝƚĂƚĞƚŚĞWƌŽŐƌĂŵ͕^ŽƵƌĐĞǁĞůůhas awarded Supplier this ĐŽŽƉĞƌĂƟǀĞƉƵƌĐŚĂƐŝŶŐDĂƐƚĞƌŐƌĞĞŵĞŶƚĨŽůůŽǁŝŶŐĂĐŽŵƉĞƟƟǀĞƉƌŽĐƵƌĞŵĞŶƚƉƌŽĐĞƐƐŝŶƚĞŶĚĞĚƚŽ ŵĞĞƚĐŽŵƉůŝĂŶĐĞƐƚĂŶĚĂƌĚƐŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚDŝŶŶĞƐŽƚĂůĂǁĂŶĚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐĐŽŶƚĂŝŶĞĚ herein.
2) /ŶƚĞŶƚ͘ dŚĞŝŶƚĞŶƚŽĨƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚŝƐƚŽĚĞĮŶĞƚŚĞƌŽůĞƐŽĨ^ŽƵƌĐĞǁĞůů͕^ƵƉƉůŝĞƌ͕ĂŶĚ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJĂƐŝƚƌĞůĂƚĞƐƚŽ^ŽƵƌĐĞǁĞůů͛ƐŽŽƉĞƌĂƟǀĞWƵƌĐŚĂƐŝŶŐWƌŽŐƌĂŵ͘ ϯͿ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJĐĐĞƐƐ͘ ^ŽƵƌĐĞǁĞůů͛ƐCŽŽƉĞƌĂƟǀĞPurchasing Program Master Agreements are ĂǀĂŝůĂďůĞƚŽĞůŝŐŝďůĞƉƵďůŝĐĂŐĞŶĐŝĞƐ;WĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐͿ. WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ͛ƐĂƵƚŚŽƌŝƚLJƚŽĂĐĐĞƐƐ
^ŽƵƌĐĞǁĞůů͛ƐCŽŽƉĞƌĂƟǀĞPurchasing PƌŽŐƌĂŵŝƐĚĞƚĞƌŵŝŶĞĚƚŚƌŽƵŐŚƚŚĞůĂǁƐŽĨŝƚƐƌĞƐƉĞĐƟǀĞ ũƵƌŝƐĚŝĐƟŽŶ͘
4) ^ƵƉƉůŝĞƌĐĐĞƐƐ͘ dŚĞ/ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐŽīĞƌĞĚƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚŵĂLJďĞŵĂĚĞĂǀĂŝůĂďůĞƚŽĂŶLJ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ͘^ƵƉƉůŝĞƌƵŶĚĞƌƐƚĂŶĚƐƚŚĂƚĂWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ͛ƐƵƐĞŽĨƚŚŝƐŐƌĞĞŵĞŶƚŝƐĂƚƚŚĞ
WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ͛ƐƐŽůĞĐŽŶǀĞŶŝĞŶĐĞ͘^ƵƉƉůŝĞƌǁŝůůĞĚƵĐĂƚĞŝƚƐƐĂůĞƐĂŶĚƐĞƌǀŝĐĞĨŽƌĐĞƐĂďŽƵƚ
112124-KON
v052824 2
^ŽƵƌĐĞǁĞůůĞůŝŐŝďŝůŝƚLJƌĞƋƵŝƌĞŵĞŶƚƐĂŶĚƌĞƋƵŝƌĞĚĚŽĐƵŵĞŶƚĂƟŽŶ͘^ƵƉƉůŝĞƌǁŝůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌ ĞŶƐƵƌŝŶŐƐĂůĞƐĂƌĞǁŝƚŚWĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐ.
5) dĞƌŵ͘ dŚŝƐŐƌĞĞŵĞŶƚŝƐĞīĞĐƟǀĞƵƉŽŶƚŚĞĚĂƚĞŽĨƚŚĞĮŶĂůƐŝŐŶĂƚƵƌĞďĞůŽǁ͘dŚĞƚĞƌŵŽĨƚŚŝƐ ŐƌĞĞŵĞŶƚŝƐĨŽƵƌ;ϰͿLJĞĂƌƐĨƌŽŵƚŚĞĞīĞĐƟǀĞĚĂƚĞ͘dŚĞŐƌĞĞŵĞŶƚĞdžƉŝƌĞƐĂƚϭϭ͗ϱϵW͘D͘ĞŶƚƌĂů Time on January 10, 2029, ƵŶůĞƐƐŝƚŝƐĐĂŶĐĞůůĞĚŽƌĞdžƚĞŶĚĞĚĂƐĚĞĮŶĞĚŝŶƚŚŝƐŐƌĞĞŵĞŶƚ͘ a)
džƚĞŶƐŝŽŶƐ͘ Sourcewell and Supplier may agree to up to three ;ϯͿ ĂĚĚŝƟŽŶĂůŽŶĞ-year extensions ďĞLJŽŶĚƚŚĞŽƌŝŐŝŶĂůĨŽƵƌ-LJĞĂƌƚĞƌŵ͘dŚĞƚŽƚĂůƉŽƐƐŝďůĞůĞŶŐƚŚŽĨƚŚŝƐŐƌĞĞŵĞŶƚǁŝůůďĞƐĞǀĞŶ(7) LJĞĂƌƐĨƌŽŵƚŚĞĞīĞĐƟǀĞĚĂƚĞ͘
b)
džĐĞƉƟŽŶĂůŝƌĐƵŵƐƚĂŶĐĞƐ͘ ^ŽƵƌĐĞǁĞůůƌĞƚĂŝŶƐƚŚĞƌŝŐŚƚƚŽĐŽŶƐŝĚĞƌĂĚĚŝƟŽŶĂůĞdžƚĞŶƐŝŽŶƐĂƐ ƌĞƋƵŝƌĞĚƵŶĚĞƌĞdžĐĞƉƟŽŶĂůĐŝƌĐƵŵƐƚĂŶĐĞƐ͘
6) ^ƵƌǀŝǀĂůŽĨdĞƌŵƐ͘ EŽƚǁŝƚŚƐƚĂŶĚŝŶŐƚŚĞƚĞƌŵŝŶĂƟŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͕ƚŚĞŽďůŝŐĂƟŽŶƐŽĨƚŚŝƐ ŐƌĞĞŵĞŶƚǁŝůůĐŽŶƟŶƵĞƚŚƌŽƵŐŚƚŚĞƉĞƌĨŽƌŵĂŶĐĞƉĞƌŝŽĚŽĨĂŶLJƚƌĂŶƐĂĐƟŽŶĞŶƚĞƌĞĚbetween ^ƵƉƉůŝĞƌĂŶĚĂŶLJWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJďĞĨŽƌĞƚŚĞƚĞƌŵŝŶĂƟŽŶĚĂƚĞ͘
7) ^ĐŽƉĞ͘^ƵƉƉůŝĞƌŝƐĂǁĂƌĚĞĚĂDĂƐƚĞƌŐƌĞĞŵĞŶƚƚŽƉƌŽǀŝĚĞƚŚĞƐŽůƵƟŽŶƐŝĚĞŶƟĮĞĚŝŶ;^ŽůŝĐŝƚĂƟŽŶ #112124) ƚŽWĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐ͘/Ŷ-^ĐŽƉĞƐŽůƵƟŽŶƐŝŶĐůƵĚĞ͗
a) ŽƉŝĞƌƐ͕ƉƌŝŶƚĞƌƐ͕ƐĐĂŶŶĞƌƐ͕ĂŶĚŵƵůƟ-ĨƵŶĐƟŽŶĚĞǀŝĐĞƐĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨƉƌŝŶƚ͕ƐƉĞĐŝĂůƚLJƉƌŝŶƚ͕ ĚƵƉůŝĐĂƟŽŶ͕ƌĞƉƌŽĚƵĐƟŽŶ͕ŽƌŝŵĂŐŝŶŐŽĨĚŽĐƵŵĞŶƚƐŽƌŵĂƚĞƌŝĂůĂĐƌŽƐƐĂďƌŽĂĚƌĂŶŐĞŽĨŽƵƚƉƵƚ ĨŽƌŵĂƚƐ͕ƋƵĂůŝƟĞƐ͕ĂŶĚƐŝnjĞƐ͕ŝŶĂǀĂƌŝĞƚLJŽĨĚĞǀŝĐĞĐĂƉĂďŝůŝƟes, such as mobile, desktop, and ƉƌŽĚƵĐƟŽŶƵŶŝƚƐ͕ĂŶĚďůĂĐŬĂŶĚǁŚŝƚĞŽƌĐŽůŽƌĨŽƌŵĂƚ͖
b) WƌŽƉŽƐĞƌƐŵĂLJŽīĞƌŚĂƌĚǁĂƌĞ͕ƐŽŌǁĂƌĞ͕ĂŶĚĂĐĐĞƐƐŽƌŝĞƐ, to the extent that they are complementary and directly related to the ƐŽůƵƟŽŶƐ ĚĞƐĐƌŝďĞĚŝŶϳͿĂĂďŽǀĞ͖ c) ^ĞƌǀŝĐĞƐƌĞůĂƚĞĚƚŽƚŚĞƐŽůƵƟŽŶƐĚĞƐĐƌŝďĞd in 7)a – b) above, including managed print services ;DW^Ϳ͕ĂĐĐĞƐƐŽƌƐĞĐƵƌŝƚLJĐŽŶƚƌŽůƐ͕ŶĞƚǁŽƌŬŝŶŐ͕ŝŶƐƚĂůůĂƟŽŶ͕ŵŽŶŝƚŽƌŝŶŐŽƌƚĞƐƟŶŐ͕ŵĂŝŶƚĞŶĂŶĐĞ ŽƌƌĞƉĂŝƌ͕ĂŶĚǁĂƌƌĂŶƚLJƉƌŽŐƌĂŵƐ͘,ŽǁĞǀĞƌ͕ƚŚŝƐƐŽůŝĐŝƚĂƟŽŶƐŚŽƵůĚEKdďĞĐŽŶƐƚƌƵĞĚƚŽŝŶĐůƵĚĞ MPS-only or service-onůLJƐŽůƵƟŽŶƐ͘
ϴͿ /ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐ͘ ^ƵƉƉůŝĞƌ͛ƐWƌŽƉŽƐĂůƚŽƚŚĞĂďŽǀĞƌĞĨĞƌĞŶĐĞĚZ&Wis incorporated into this Master ŐƌĞĞŵĞŶƚ͘KŶůLJƚŚŽƐĞ^ŽůƵƟŽŶƐŝŶĐůƵĚĞĚǁŝƚŚŝŶ^ƵƉƉůŝĞƌ͛ƐWƌŽƉŽƐĂůĂŶĚǁŝƚŚŝŶ^ĐŽƉĞ;/ŶĐůƵĚĞĚ ^ŽůƵƟŽŶƐͿĂƌĞŝŶĐůƵĚĞĚǁŝƚŚŝŶƚŚĞŐƌĞĞŵĞŶƚĂŶĚŵĂLJďĞŽīĞƌĞĚƚŽWĂƌƟĐŝƉĂƟŶŐ ŶƟƟĞƐ.
9) /ŶĚĞĮŶŝƚĞYƵĂŶƟƚLJ͘ dŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚĚĞĮŶĞƐĂŶŝŶĚĞĮŶŝƚĞƋƵĂŶƟƚLJŽĨƐĂůĞƐƚŽĞůŝŐŝďůĞ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐ.
10) WƌŝĐŝŶŐ͘ WƌŝĐŝŶŐŝŶĨŽƌŵĂƟŽŶ;ŝŶĐůƵĚŝŶŐWƌŝĐŝŶŐĂŶĚĞůŝǀĞƌLJĂŶĚWƌŝĐŝŶŐKīĞƌĞĚtĂďůĞƐͿĨŽƌĂůů/ŶĐůƵĚĞĚ ^ŽůƵƟŽŶƐǁŝƚŚŝŶ^ƵƉƉůŝĞƌ͛ƐWƌŽƉŽƐĂůŝƐŝŶĐŽƌƉŽƌĂƚĞĚŝŶƚŽƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚ͘ 11) Not to Exceed WƌŝĐŝŶŐ͘ Suppliers may not exceed the prices listed in the current Pricing List ŽŶĮůĞ with Sourcewell ǁŚĞŶŽīĞƌŝŶŐ/ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐƚŽWĂƌƟĐŝƉĂƟŶŐ ŶƟƟĞƐ͘WĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐŵĂLJ
ƌĞƋƵĞƐƚĂĚũƵƐƚŵĞŶƚƐƚŽƉƌŝĐŝŶŐĚŝƌĞĐƚůLJĨƌŽŵ^ƵƉƉůŝĞƌĚƵƌŝŶŐƚŚĞŶĞŐŽƟĂƟŽŶĂŶĚĞdžĞĐƵƟŽŶŽĨĂŶLJ ƚƌĂŶƐĂĐƟŽŶ.
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12) KƉĞŶDĂƌŬĞƚ͘ ^ƵƉƉůŝĞƌ͛ƐŽƉĞŶŵĂƌŬĞƚƉƌŝĐŝŶŐprocess is included within its Proposal. ϭϯͿ ^ƵƉƉůŝĞƌZĞƉƌĞƐĞŶƚĂƟŽŶƐ͗
i) ŽŵƉůŝĂŶĐĞ͘ Supplier represents and warrants it will provide all /ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐ ƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚŝŶĨƵůůĐŽŵƉůŝĂŶĐĞǁŝƚŚĂƉƉůŝĐĂďůĞĨĞĚĞƌĂů͕ƐƚĂƚĞ͕ĂŶĚůŽĐĂůůĂǁƐĂŶĚ ƌĞŐƵůĂƟŽŶƐ͘
ii) >ŝĐĞŶƐĞƐ͘ ƐĂƉƉůŝĐĂďůĞ͕^ƵƉƉůŝĞƌǁŝůůŵĂŝŶƚĂŝŶĂǀĂůŝĚƐƚĂƚƵƐŽŶĂůůƌĞƋƵŝƌĞĚĨĞĚĞƌĂů͕ƐƚĂƚĞ͕ ĂŶĚůŽĐĂůůŝĐĞŶƐĞƐ͕ďŽŶĚƐ͕ĂŶĚƉĞƌŵŝƚƐƌĞƋƵŝƌĞĚĨŽƌƚŚĞŽƉĞƌĂƟŽŶŽĨ^ƵƉƉůŝĞƌ͛ƐďƵƐŝŶĞƐƐǁŝƚŚ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐ͘WĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐŵĂLJƌĞƋƵĞƐƚĂůůƌĞůĞǀĂŶƚĚŽĐƵŵĞŶƚĂƟŽŶĚŝƌĞĐƚůLJĨƌŽŵ Supplier.
iii) ^ƵƉƉůŝĞƌtĂƌƌĂŶƚƐ͘ Supplier warrants that all /ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐĨƵƌŶŝƐŚĞĚƵŶĚĞƌƚŚŝƐ ŐƌĞĞŵĞŶƚĂƌĞĨƌĞĞĨƌŽŵůŝĞŶƐĂŶĚĞŶĐƵŵďƌĂŶĐĞƐ͕ĂŶĚ that all Supplier-ďƌĂŶĚĞĚĞƋƵŝƉŵĞŶƚĂŶĚ products ĂƌĞĨƌĞĞĨƌŽŵĚĞĨĞĐƚƐŝŶĚĞƐŝŐŶ͕ŵĂƚĞƌŝĂůƐ͕ĂŶĚǁŽƌŬŵĂŶƐŚŝƉ͘Third-party branded ĞƋƵŝƉŵĞŶƚĂŶĚƉƌŽĚƵĐƚƐĂƌĞĐŽǀĞƌĞĚĞdžĐůƵƐŝǀĞůLJďLJƚŚĞƚĞƌŵƐŽĨƚŚĞƚŚŝƌĚ-ƉĂƌƚLJŵĂŶƵĨĂĐƚƵƌĞƌ͛Ɛ warranty. /ŶĂĚĚŝƟŽŶ͕^ƵƉƉůŝĞƌǁĂƌƌĂŶƚƐthat Supplier-ďƌĂŶĚĞĚĞƋƵŝƉŵĞŶƚĂŶĚƉƌŽĚƵĐƚƐǁŝůů ƉĞƌĨŽƌŵŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŵĂŶƵĨĂĐƚƵƌĞƌ͛ƐƐƉĞĐŝĮĐĂƟŽŶs, and the services will be ƉĞƌĨŽƌŵĞĚŝŶĂƉƌŽĨĞƐƐŝŽŶĂů͕ǁŽƌŬŵĂŶůŝŬĞŵĂŶŶĞƌ͕ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚŝŶĚƵƐƚƌLJƐƚĂŶĚĂƌĚƐĂƐ ĚĞƐĐƌŝďĞĚŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨǁŽƌŬ͘^ƵƉƉůŝĞƌ͛ƐĚĞĂůĞƌƐĂŶĚĚŝƐƚƌŝďƵƚŽƌƐŵƵƐƚĂŐƌĞĞƚŽĂƐƐŝƐƚƚŚĞ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJŝŶƌĞĂĐŚŝŶŐĂƌĞƐŽůƵƟŽŶŝŶĂŶLJĚŝƐƉƵƚĞŽǀĞƌǁĂƌƌĂŶƚLJƚĞƌŵƐǁŝƚŚƚŚĞ ŵĂŶƵĨĂĐƚƵƌĞƌ͘ŶLJŵĂŶƵĨĂĐƚƵƌĞƌ͛ƐǁĂƌƌĂŶƚLJƚŚĂƚŝƐĞīĞĐƟǀĞƉĂƐƚƚŚĞĞdžƉŝƌĂƟŽŶŽĨƚŚĞ^ƵƉƉůŝĞƌ͛Ɛ ǁĂƌƌĂŶƚLJĂŶĚĐĂŶďĞƚƌĂŶƐĨĞƌƌĞĚǁŝůůďĞƉĂƐƐĞĚŽŶƚŽƚŚĞWĂƌƟĐŝƉĂƟŶŐ ŶƟƚLJ͘
^ƵƉƉůŝĞƌ͛ƐĞŶƟƌĞůŝĂďŝůŝƚLJĨŽƌĂŶLJǁĂƌƌĂŶƚLJĐůĂŝŵƐŚĂůůďĞĨŽƌ^ƵƉƉůŝĞƌƚŽƌĞƉĂŝƌŽƌƌĞƉůĂĐĞƚŚĞ ĚĞĨĞĐƟǀĞ
ƋƵŝƉŵĞŶƚĂŶĚͬŽƌWƌŽĚƵĐƚƐŽƌƌĞ-ƉĞƌĨŽƌŵƚŚĞĚĞĮĐŝĞŶƚ^ĞƌǀŝĐĞƐ͕Žƌ͕ŝĨ^ƵƉƉůŝĞƌĨĂŝůƐƚŽ ĐŽƌƌĞĐƚƐƵĐŚĚĞĨĞĐƚŽƌĚĞĮĐŝĞŶĐLJǁŝƚŚŝŶƚŚŝƌƚLJ;ϯϬͿĚĂLJƐŽĨŶŽƟĐĞŽĨĂĐůĂŝŵ͕ƚŽǀŽŝĚƚŚĞŝŶǀŽŝĐĞ ĨŽƌƚŚĞĚĞĨĞĐƟǀĞ
ƋƵŝƉŵĞŶƚŽƌWƌŽĚƵĐƚŽƌĚĞĮĐŝĞŶƚ^ĞƌǀŝĐĞƐ͘^ƵƉƉůŝĞƌƐŚĂůůŚĂǀĞŶŽŽďůŝŐĂƟŽŶ ǁŝƚŚƌĞƐƉĞĐƚƚŽĂǁĂƌƌĂŶƚLJĐůĂŝŵ;ŝͿŝĨŶŽƟĮĞĚŽĨƐƵĐŚĐůĂŝŵŵŽƌĞƚŚĂŶƚŚŝƌƚLJ;ϯϬͿĚĂLJƐĂŌĞƌƚŚĞ WƌŽĚƵĐƚŝŶƋƵĞƐƟŽŶ ǁĂƐĚĞůŝǀĞƌĞĚŽƌƚŚĞ^ĞƌǀŝĐĞƐŝŶƋƵĞƐƟŽŶǁĞƌĞĮƌƐƚƉĞƌĨŽƌŵĞĚŽƌ;ŝŝͿŝĨƚŚĞ ĐůĂŝŵŝƐƚŚĞƌĞƐƵůƚŽĨƚŚŝƌĚ-ƉĂƌƚLJŚĂƌĚǁĂƌĞŽƌƐŽŌǁĂƌĞĨĂŝůƵƌĞƐ͕ŽƌƚŚĞĂĐƟŽŶƐŽĨWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJŽƌĂƚŚŝƌĚƉĂƌƚLJ͘d,/^^
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KE>ztZZEd/
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14) ĂŶŬƌƵƉƚĐLJEŽƟĐĞƐ͘ ^ƵƉƉůŝĞƌĐĞƌƟĮĞƐĂŶĚǁĂƌƌĂŶƚƐŝƚŝƐŶŽƚĐƵƌƌĞŶƚůLJŝŶĂďĂŶŬƌƵƉƚĐLJƉƌŽĐĞĞĚŝŶŐ͘ Supplier has disclosed all current and completed bankruptcy proceedings within the past seven years ǁŝƚŚŝŶŝƚƐWƌŽƉŽƐĂů͘^ƵƉƉůŝĞƌŵƵƐƚƉƌŽǀŝĚĞŶŽƟĐĞŝŶǁƌŝƟŶŐƚŽ^ŽƵƌĐĞǁĞůůŝĨŝƚĞŶƚĞƌƐĂďĂŶŬƌƵƉƚĐLJ ƉƌŽĐĞĞĚŝŶŐĂƚĂŶLJƟŵĞĚƵƌŝŶŐƚŚĞƚĞƌŵŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘ 15) ĞďĂƌŵĞŶƚĂŶĚ^ƵƐƉĞŶƐŝŽŶ͘ ^ƵƉƉůŝĞƌĐĞƌƟĮĞƐĂŶĚǁĂƌƌĂŶƚƐƚŚĂƚŶĞŝƚŚĞƌŝƚŶŽƌŝƚƐƉƌŝŶĐŝƉĂůƐĂƌĞ ƉƌĞƐĞŶƚůLJĚĞďĂƌƌĞĚ͕ƐƵƐƉĞŶĚĞĚ͕ƉƌŽƉŽƐĞĚĨŽƌĚĞďĂƌŵĞŶƚ͕ĚĞĐůĂƌĞĚŝŶĞůŝŐŝďůĞ͕ŽƌǀŽůƵŶƚĂƌŝůLJĞdžĐůƵĚĞĚ ĨƌŽŵƉƌŽŐƌĂŵƐŽƉĞƌĂƚĞĚďLJƚŚĞ^ƚĂƚĞŽĨDŝŶŶĞƐŽƚĂ͕ƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐĨĞĚĞƌĂůŐŽǀĞƌŶŵĞnt, or any WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ͘^ƵƉƉůŝĞƌĐĞƌƟĮĞƐĂŶĚǁĂƌƌĂŶƚƐƚŚĂƚŶĞŝƚŚĞƌŝƚŶŽƌŝƚƐƉƌŝŶĐŝƉĂůƐŚĂǀĞďĞĞŶ ĐŽŶǀŝĐƚĞĚŽĨĂĐƌŝŵŝŶĂůŽīĞŶƐĞƌĞůĂƚĞĚƚŽƚŚĞƐƵďũĞĐƚŵĂƩĞƌŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘^ƵƉƉůŝĞƌĨƵƌƚŚĞƌ warrants that it will pƌŽǀŝĚĞŝŵŵĞĚŝĂƚĞǁƌŝƩĞŶŶŽƟĐĞƚŽ^ŽƵƌĐĞǁĞůůŝĨƚŚŝƐĐĞƌƟĮĐĂƟŽŶĐŚĂŶŐĞƐĂƚ ĂŶLJƟŵĞĚƵƌŝŶŐƚŚĞƚĞƌŵŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘
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16) WƌŽǀŝƐŝŽŶƐĨŽƌŶŽŶ-hŶŝƚĞĚ^ƚĂƚĞƐĨĞĚĞƌĂůĞŶƟƚLJƉƌŽĐƵƌĞŵĞŶƚƐƵŶĚĞƌhŶŝƚĞĚ^ƚĂƚĞƐĨĞĚĞƌĂůĂǁĂƌĚƐ ŽƌŽƚŚĞƌĂǁĂƌĚƐ;ƉƉĞŶĚŝdžII ƚŽϮ͘&͘ZΑϮϬϬͿ͘ WĂƌƟĐŝƉĂƟŶŐ ŶƟƟĞƐƚŚĂƚƵƐĞhŶŝƚĞĚ^ƚĂƚĞƐĨĞĚĞƌĂů
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60, all agreements ƚŚĂƚŵĞĞƚƚŚĞĚĞĮŶŝƟŽŶŽĨ͞ĨĞĚĞƌĂůůLJĂƐƐŝƐƚĞĚĐŽŶƐƚƌƵĐƟŽŶĐŽŶƚƌĂĐƚ͟ŝŶϰϭ ͘&͘Z͘ΑϲϬ-ϭ͘ϯŵƵƐƚŝŶĐůƵĚĞƚŚĞĞƋƵĂůŽƉƉŽƌƚƵŶŝƚLJĐůĂƵƐĞƉƌŽǀŝĚĞĚƵŶĚĞƌϰϭ͘&͘Z͘ΑϲϬ-1.4(b), in ĂĐĐŽƌĚĂŶĐĞǁŝƚŚ
džĞĐƵƟǀĞKƌĚĞƌϭϭϮϰϲ͕͞
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ŵƉůŽLJŵĞŶƚKƉƉŽƌƚƵŶŝƚLJ͟;ϯϬ&ZϭϮϯϭϵ͕ϭϮϵϯϱ͕
ϯ͘&͘Z͘Α͕ϭϵϲϰ-ϭϵϲϱŽŵƉ͕͘Ɖ͘ϯϯϵͿ͕ĂƐĂŵĞŶĚĞĚďLJ
džĞĐƵƟǀĞKƌĚĞƌϭϭϯϳϱ͕͞ŵĞŶĚŝŶŐ
džĞĐƵƟǀĞKƌĚĞƌϭϭϮϰϲZĞůĂƟŶŐƚŽ
ƋƵĂů
ŵƉůŽLJŵĞŶƚKƉƉŽƌƚƵŶŝƚLJ͕͟ ĂŶĚŝŵƉůĞŵĞŶƟŶŐ
ƌĞŐƵůĂƟŽŶƐĂƚϰϭ͘&͘Z͘ΑϲϬ͕͞KĸĐĞŽĨ&ĞĚĞƌĂůŽŶƚƌĂĐƚŽŵƉůŝĂŶĐĞWƌŽŐƌĂŵƐ͕ ƋƵĂů
ŵƉůŽLJŵĞŶƚKƉƉŽƌƚƵŶŝƚLJ͕ĞƉĂƌƚŵĞŶƚŽĨ>ĂďŽƌ͘͟dŚĞĞƋƵĂůŽƉƉŽƌƚƵŶŝƚLJĐůĂƵƐĞŝƐŝŶĐŽƌƉŽƌĂƚĞĚ ŚĞƌĞŝŶďLJƌĞĨĞƌĞŶĐĞ͘
ii) s/^-KEd͕^D
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;ϰϬh͘^͘͘Αϯϭϰϭ-ϯϭϰϴͿ͘ tŚĞŶƌĞƋƵŝƌĞĚďLJĨĞĚĞƌĂů
ƉƌŽŐƌĂŵůĞŐŝƐůĂƟŽŶ͕ĂůůƉƌŝŵĞĐŽŶƐƚƌƵĐƟŽŶĐŽŶƚƌĂĐƚƐŝŶĞdžĐĞƐƐŽĨΨϮ͕ϬϬϬĂǁĂƌĚĞĚďLJŶŽŶ-ĨĞĚĞƌĂů ĞŶƟƟĞƐŵƵƐƚŝŶĐůƵĚĞĂƉƌŽǀŝƐŝŽŶĨŽƌĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞĂǀŝƐ-ĂĐŽŶĐƚ;ϰϬh͘^͘͘Αϯϭϰϭϯϭϰϰ͕ĂŶĚϯϭϰϲ-ϯϭϰϴͿĂƐƐƵƉƉůĞŵĞŶƚĞĚďLJĞƉĂƌƚŵĞŶƚŽĨ>ĂďŽƌƌĞŐƵůĂƟŽŶƐ;Ϯϵ͘&͘Z͘Αϱ͕ ͞>ĂďŽƌ^ƚĂŶĚĂƌĚƐWƌŽǀŝƐŝŽŶƐƉƉůŝĐĂďůĞƚŽŽŶƚƌĂĐƚƐŽǀĞƌŝŶŐ&ĞĚĞƌĂůůLJ&ŝŶĂŶĐĞĚĂŶĚƐƐŝƐƚĞĚ ŽŶƐƚƌƵĐƟŽŶ͟Ϳ͘/ŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƐƚĂƚƵƚĞ͕ĐŽŶƚƌĂĐƚŽƌƐŵƵƐƚďĞƌĞƋƵŝƌĞĚƚŽƉĂLJǁĂŐĞƐƚŽ laborers and mechanics ĂƚĂƌĂƚĞŶŽƚůĞƐƐƚŚĂŶƚŚĞƉƌĞǀĂŝůŝŶŐǁĂŐĞƐƐƉĞĐŝĮĞĚŝŶĂǁĂŐĞ ĚĞƚĞƌŵŝŶĂƟŽŶŵĂĚĞďLJƚŚĞ^ĞĐƌĞƚĂƌLJŽĨ>ĂďŽƌ͘/ŶĂĚĚŝƟŽŶ͕ĐŽŶƚƌĂĐƚŽƌƐŵƵƐƚďĞƌĞƋƵŝƌĞĚƚŽƉĂLJ wages not less than once a week. The non-ĨĞĚĞƌĂůĞŶƟƚLJŵƵƐƚƉůĂĐĞĂĐŽƉLJŽĨƚŚĞĐƵƌƌĞŶƚ prevailŝŶŐǁĂŐĞĚĞƚĞƌŵŝŶĂƟŽŶŝƐƐƵĞĚďLJƚŚĞĞƉĂƌƚŵĞŶƚŽĨ>ĂďŽƌŝŶĞĂĐŚƐŽůŝĐŝƚĂƟŽŶ͘dŚĞ ĚĞĐŝƐŝŽŶƚŽĂǁĂƌĚĂĐŽŶƚƌĂĐƚŽƌƐƵďĐŽŶƚƌĂĐƚŵƵƐƚďĞĐŽŶĚŝƟŽŶĞĚƵƉŽŶƚŚĞĂĐĐĞƉƚĂŶĐĞŽĨƚŚĞ ǁĂŐĞĚĞƚĞƌŵŝŶĂƟŽŶ͘dŚĞŶŽŶ-ĨĞĚĞƌĂůĞŶƟƚLJŵƵƐƚƌĞƉŽƌƚĂůůƐƵƐƉĞĐƚĞĚŽƌƌĞƉŽƌƚĞĚǀŝŽůĂƟŽŶƐƚŽ ƚŚĞĨĞĚĞƌĂůĂǁĂƌĚŝŶŐĂŐĞŶĐLJ͘dŚĞĐŽŶƚƌĂĐƚƐŵƵƐƚĂůƐŽŝŶĐůƵĚĞĂƉƌŽǀŝƐŝŽŶĨŽƌĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞ ŽƉĞůĂŶĚ͞ŶƟ-<ŝĐŬďĂĐŬ͟Đƚ;ϰϬh͘^͘͘ΑϯϭϰϱͿ͕ĂƐƐƵƉƉůĞŵĞŶƚĞĚďLJĞƉĂƌƚŵĞŶƚŽĨ>ĂďŽƌ ƌĞŐƵůĂƟŽŶƐ;Ϯϵ͘&͘Z͘Αϯ͕͞ŽŶƚƌĂĐƚŽƌƐĂŶĚ^ƵďĐŽŶƚƌĂĐƚŽƌƐŽŶWƵďůŝĐƵŝůĚŝŶŐŽƌWƵďůŝĐtŽƌŬ &ŝŶĂŶĐĞĚŝŶtŚŽůĞŽƌŝŶWĂƌƚďLJ>ŽĂŶƐŽƌ'ƌĂŶƚƐĨƌŽŵƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐ͟Ϳ͘dŚĞĐƚƉƌŽǀŝĚĞƐƚŚĂƚ ĞĂĐŚĐŽŶƚƌĂĐƚŽƌŽƌƐƵďƌĞĐŝƉŝĞŶƚŵƵƐƚďĞƉƌŽŚŝďŝƚĞĚĨƌŽŵŝŶĚƵĐŝŶŐ͕ďLJĂŶLJŵĞĂŶƐ͕ĂŶLJƉĞƌƐŽŶ ĞŵƉůŽLJĞĚŝŶƚŚĞĐŽŶƐƚƌƵĐƟŽŶ͕ĐŽŵƉůĞƟŽŶ͕ŽƌƌĞƉĂŝƌŽĨƉƵďůŝĐǁŽƌŬ͕ƚŽŐŝǀĞƵƉĂŶLJƉĂƌƚŽĨƚŚĞ ĐŽŵƉĞŶƐĂƟŽŶƚŽǁŚŝĐŚŚĞŽƌƐŚĞŝƐŽƚŚĞƌǁŝƐĞĞŶƟƚůĞĚ͘dŚĞŶŽŶ-ĨĞĚĞƌĂůĞŶƟƚLJŵƵƐƚƌĞƉŽƌƚĂůů ƐƵƐƉĞĐƚĞĚŽƌƌĞƉŽƌƚĞĚǀŝŽůĂƟŽŶƐƚŽƚŚĞĨĞĚĞƌĂůĂǁĂƌĚŝŶŐĂŐĞŶĐLJ͘^ƵƉƉůŝĞƌŵƵƐƚĐŽŵƉůLJǁŝƚŚĂůů appliĐĂďůĞĂǀŝƐ-Bacon Act provisions.
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112124-KON
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ƚŚĞƐƚĂŶĚĂƌĚǁŽƌŬǁĞĞŬŝƐƉĞƌŵŝƐƐŝďůĞƉƌŽǀŝĚĞĚƚŚĂƚƚŚĞǁŽƌŬĞƌŝƐĐŽŵƉĞŶƐĂƚĞĚĂƚĂƌĂƚĞŽĨŶŽƚ ůĞƐƐƚŚĂŶŽŶĞĂŶĚĂŚĂůĨƟŵĞƐƚŚĞďĂƐŝĐƌĂƚĞŽĨƉĂLJĨŽƌĂůůŚŽƵƌƐǁŽƌŬĞĚŝŶĞdžĐĞƐƐŽĨϰϬŚŽƵƌƐŝŶ ƚŚĞǁŽƌŬǁĞĞŬ͘dŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨϰϬh͘^͘͘ΑϯϳϬϰĂƌĞĂƉƉůŝĐĂďůĞƚŽĐŽŶƐƚƌƵĐƟŽŶǁŽƌŬĂŶĚ ƉƌŽǀŝĚĞƚŚĂƚŶŽůĂďŽƌĞƌŽƌŵĞĐŚĂŶŝĐŵƵƐƚďĞƌĞƋƵŝƌĞĚƚŽǁŽƌŬŝŶƐƵƌƌŽƵŶĚŝŶŐƐŽƌƵŶĚĞƌǁŽƌŬŝŶŐ ĐŽŶĚŝƟŽŶƐǁŚŝĐŚĂƌĞƵŶƐĂŶŝƚĂƌLJ͕ŚĂnjĂƌĚŽƵƐŽƌĚĂŶŐĞƌŽƵƐ͘dŚĞƐĞƌĞƋƵŝƌĞŵĞŶƚƐĚŽŶŽƚĂƉƉůLJƚŽ ƚŚĞƉƵƌĐŚĂƐĞƐŽĨƐƵƉƉůŝĞƐ͕ŵĂƚĞƌŝĂůƐ͕Žƌ ĂƌƟĐůĞƐŽƌĚŝŶĂƌŝůLJĂǀĂŝůĂďůĞŽŶƚŚĞŽƉĞŶŵĂƌŬĞƚ͕Žƌ ĐŽŶƚƌĂĐƚƐĨŽƌƚƌĂŶƐƉŽƌƚĂƟŽŶŽƌƚƌĂŶƐŵŝƐƐŝŽŶŽĨŝŶƚĞůůŝŐĞŶĐĞ͘dŚŝƐƉƌŽǀŝƐŝŽŶŝƐŚĞƌĞďLJŝŶĐŽƌƉŽƌĂƚĞĚ ďLJƌĞĨĞƌĞŶĐĞŝŶƚŽƚŚŝƐŐƌĞĞŵĞŶƚ͘^ƵƉƉůŝĞƌĐĞƌƟĮĞƐƚŚĂƚĚƵƌŝŶŐƚŚĞƚĞƌŵŽĨĂŶĂǁĂƌĚĨŽƌĂůů AgreemenƚƐďLJ^ŽƵƌĐĞǁĞůůƌĞƐƵůƟŶŐĨƌŽŵƚŚŝƐƉƌŽĐƵƌĞŵĞŶƚƉƌŽĐĞƐƐ͕^ƵƉƉůŝĞƌŵƵƐƚĐŽŵƉůLJǁŝƚŚ ĂƉƉůŝĐĂďůĞƌĞƋƵŝƌĞŵĞŶƚƐĂƐƌĞĨĞƌĞŶĐĞĚĂďŽǀĞ͘
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;
WͿ͘^ƵƉƉůŝĞƌĐĞƌƟĮĞƐƚŚĂƚĚƵƌŝŶŐƚŚĞƚĞƌŵŽĨƚŚŝƐŐƌĞĞŵĞŶƚŝƚǁŝůůĐŽŵƉůLJǁŝƚŚĂƉƉůŝĐĂďůĞ ƌĞƋƵŝƌĞŵĞŶƚƐĂƐƌĞĨĞƌĞŶĐĞĚĂďŽǀĞ͘
vi)
ZD
EdE^h^W
E^/KE;
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KZ
Z^ϭϮϱϰϵEϭϮϲϴϵͿ͘ A contract
ĂǁĂƌĚ;ƐĞĞϮ͘&͘Z͘ΑϭϴϬ͘ϮϮϬͿŵƵƐƚŶŽƚďĞŵĂĚĞƚŽƉĂƌƟĞƐůŝƐƚĞĚŽŶƚŚĞŐŽǀĞƌŶŵĞŶƚǁŝĚĞ ĞdžĐůƵƐŝŽŶƐŝŶƚŚĞ^LJƐƚĞŵĨŽƌǁĂƌĚDĂŶĂŐĞŵĞŶƚ;^DͿ͕ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞKDŐƵŝĚĞůŝŶĞƐ ĂƚϮ͘&͘Z͘ΑϭϴϬƚŚĂƚŝŵƉůĞŵĞŶƚ
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ƚŚĞŶĂŵĞƐŽĨƉĂƌƟĞƐĚĞďĂƌƌĞĚ͕ƐƵƐƉĞŶĚĞĚ͕ŽƌŽƚŚĞƌǁŝƐĞĞdžĐůƵĚĞĚďLJĂŐĞŶĐŝĞƐ͕ĂƐǁĞůůĂƐƉĂƌƟĞƐ ĚĞĐůĂƌĞĚŝŶĞůŝŐŝďůĞƵŶĚĞƌƐƚĂƚƵƚŽƌLJŽƌƌĞŐƵůĂƚŽƌLJĂƵƚŚŽƌŝƚLJŽƚŚĞƌƚŚĂŶ džĞĐƵƟǀĞKƌĚĞƌϭϮϱϰϵ͘
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vii) zZEd/->Kz/E'D
ED
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E
;ϯϭh͘^͘͘ΑϭϯϱϮͿ͘ Suppliers must
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112124-KON
v052824 6
ƚŚĂƚƚĂŬĞƐƉůĂĐĞŝŶĐŽŶŶĞĐƟŽŶǁŝƚŚŽďƚĂŝŶŝŶŐĂŶLJĨĞĚĞƌĂůĂǁĂƌĚ͘^ƵĐŚĚŝƐĐůŽƐƵƌĞƐĂƌĞĨŽƌǁĂƌĚĞĚ ĨƌŽŵƟĞƌƚŽƟĞƌƵƉƚŽƚŚĞŶŽŶ-ĨĞĚĞƌĂůĂǁĂƌĚ͘^ƵƉƉůŝĞƌƐŵƵƐƚĮůĞĂůůĐĞƌƟĮĐĂƟŽŶƐĂŶĚĚŝƐĐůŽƐƵƌĞƐ ƌĞƋƵŝƌĞĚďLJ͕ĂŶĚŽƚŚĞƌǁŝƐĞĐŽŵƉůLJǁŝƚŚ͕ƚŚĞLJƌĚŶƟ-LobbLJŝŶŐŵĞŶĚŵĞŶƚ;ϯϭh͘^͘͘ΑϭϯϱϮͿ͘ viii) Z
KZZ
d
Ed/KEZ
Yh/Z
D
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ǁŝƚŚƚŚĞƌĞĐŽƌĚƌĞƚĞŶƟŽŶƌĞƋƵŝƌĞŵĞŶƚƐĚĞƚĂŝůĞĚŝŶϮ͘&͘Z͘ΑϮϬϬ͘ϯϯϯ͘dŚĞ^ƵƉƉůŝĞƌĨƵƌƚŚĞƌ ĐĞƌƟĮĞƐƚŚĂƚŝƚǁŝůůƌĞƚĂŝŶĂůůƌĞĐŽƌĚƐĂƐƌĞƋƵŝƌĞĚďLJϮ͘&͘Z͘ΑϮϬϬ͘ϯϯϯĨŽƌĂƉĞƌŝŽĚŽĨϯLJĞĂƌƐĂŌĞƌ ŐƌĂŶƚĞĞƐŽƌƐƵďŐƌĂŶƚĞĞƐƐƵďŵŝƚĮŶĂůĞdžƉĞŶĚŝƚƵƌĞƌĞƉŽƌƚƐŽƌƋƵĂƌƚĞƌůLJŽƌĂŶŶƵĂůĮŶĂŶĐŝĂů reports, as applicable, and alůŽƚŚĞƌƉĞŶĚŝŶŐŵĂƩĞƌƐĂƌĞĐůŽƐĞĚ͘ ix)
E
Z'zWK>/zEKE^
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WŽůŝĐLJĂŶĚŽŶƐĞƌǀĂƟŽŶĐƚ͘
x) hzD
Z/EWZKs/^/KE^KDW>/E
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xi)
^^dKZ
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xii) WZKhZ
D
EdK&Z
Ks
Z
Dd
Z/>^;Ϯ͘&͘Z͘ΑϮϬϬ͘ϯϮϮͿ͘A non-ĨĞĚĞƌĂůĞŶƟƚLJ
ƚŚĂƚŝƐĂƐƚĂƚĞĂŐĞŶĐLJŽƌĂŐĞŶĐLJŽĨĂƉŽůŝƟĐĂůƐƵďĚŝǀŝƐŝŽŶŽĨĂƐƚĂƚĞĂŶĚŝƚƐĐŽŶƚƌĂĐƚŽƌƐŵƵƐƚ ĐŽŵƉůLJǁŝƚŚ^ĞĐƟŽŶϲϬϬϮŽĨƚŚĞ^ŽůŝĚtĂƐƚĞŝƐƉŽƐĂůĐƚ͕ĂƐĂŵĞŶĚĞĚďLJƚŚĞZĞƐŽƵƌĐĞ ŽŶƐĞƌǀĂƟŽŶĂŶĚZĞĐŽǀĞƌLJĐƚ͘dŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨ^ĞĐƟŽŶϲϬϬϮŝŶĐůƵĚĞƉƌŽĐƵƌŝŶŐŽŶůLJŝƚĞŵƐ ĚĞƐŝŐŶĂƚĞĚŝŶŐƵŝĚĞůŝŶĞƐŽĨƚŚĞ
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5) ^ĂůĞƐZĞƉŽƌƟŶŐZĞƋƵŝƌĞĚ͘ ^ƵƉƉůŝĞƌŝƐƌĞƋƵŝƌĞĚĂƐĂŵĂƚĞƌŝĂůĞůĞŵĞŶƚƚŽƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚƚŽ ƌĞƉŽƌƚĂůůĐŽŵƉůĞƚĞĚƚƌĂŶƐĂĐƟŽŶƐǁŝƚŚWĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐƵƟůŝnjŝŶŐƚŚŝƐŐƌĞĞŵĞŶƚ͘&ĂŝůƵƌĞƚŽ
provide complete and accurate ƌĞƉŽƌƚƐĂƐĚĞĮŶĞĚŚĞƌĞŝŶǁŝůůďĞĂŵĂƚĞƌŝĂůďƌĞĂĐŚŽĨƚŚĞŐƌĞĞŵĞŶƚ ĂŶĚ^ŽƵƌĐĞǁĞůůƌĞƐĞƌǀĞƐƚŚĞƌŝŐŚƚƚŽƉƵƌƐƵĞĂůůƌĞŵĞĚŝĞƐĂǀĂŝůĂďůĞĂƚůĂǁŝŶĐůƵĚŝŶŐĐĂŶĐĞůůĂƟŽŶŽĨ this Agreement.
6) ZĞƉŽƌƟŶŐZĞƋƵŝƌĞŵĞŶƚƐ͘ ^ƵƉƉůŝĞƌŵƵƐƚƉƌŽǀŝĚĞ^ŽƵƌĐĞǁĞůůĂŶĂĐƟǀŝƚLJƌĞƉŽƌƚŽĨĂůůƚƌĂŶƐĂĐƟŽŶƐ ĐŽŵƉůĞƚĞĚƵƟůŝnjŝŶŐƚŚŝƐŐƌĞĞŵĞŶƚ͘ZĞƉŽƌƚƐĂƌĞĚƵĞĂƚůĞĂƐƚŽŶĐĞĞĂĐŚĐĂůĞŶĚĂƌƋƵĂƌƚĞƌ;ZĞƉŽƌƟŶŐ WĞƌŝŽĚͿ͘ZĞƉŽƌƚƐŵƵƐƚďĞƌĞĐĞŝǀĞĚŶŽůĂƚĞƌƚŚĂŶϰϱĐĂůĞŶĚĂƌĚĂLJƐĂŌĞƌƚŚĞĞŶĚŽĨĞĂch calendar ƋƵĂƌƚĞƌ͘^ƵƉƉůŝĞƌŵĂLJƌĞƉŽƌƚŽŶĂŵŽƌĞĨƌĞƋƵĞŶƚďĂƐŝƐŝŶŝƚƐĚŝƐĐƌĞƟŽŶ͘ZĞƉŽƌƚƐŵƵƐƚďĞƉƌŽǀŝĚĞĚ ƌĞŐĂƌĚůĞƐƐŽĨƚŚĞĂŵŽƵŶƚŽĨĐŽŵƉůĞƚĞĚƚƌĂŶƐĂĐƟŽŶƐĚƵƌŝŶŐƚŚĂƚƋƵĂƌƚĞƌ;ŝ͘Ğ͕͘ŝĨƚŚĞƌĞĂƌĞŶŽƐĂůĞƐ͕ Supplier must submit a ƌĞƉŽƌƚŝŶĚŝĐĂƟŶŐŶŽƐĂůĞƐǁĞƌĞŵĂĚĞͿ͘ dŚĞZĞƉŽƌƚŵƵƐƚĐŽŶƚĂŝŶƚŚĞĨŽůůŽǁŝŶŐĮĞůĚƐ͗
x WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJEĂŵĞ;Ğ͘Ő͕͘ŝƚLJŽĨ^ƚĂƉůĞƐ,ŝŐŚǁĂLJĞƉĂƌƚŵĞŶƚͿ͖
x WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJWŚLJƐŝĐĂů^ƚƌĞĞƚĚĚƌĞƐƐ͖
x WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJŝƚLJ͖
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ŶƟƚLJ^ƚĂƚĞͬWƌŽǀŝŶĐĞ͖
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x ^ŽƵƌĐĞǁĞůůWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJAccount EƵŵďĞƌ͖
x dƌĂŶƐĂĐƟŽŶĞƐĐƌŝƉƟŽŶ͖
x dƌĂŶƐĂĐƟŽŶWƵƌĐŚĂƐĞĚWƌŝĐĞ͖
x ^ŽƵƌĐĞǁĞůůĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞƉƉůŝĞĚ͖ĂŶĚ
x ĂƚĞdƌĂŶƐĂĐƟŽŶǁĂƐŝŶǀŽŝĐĞĚͬƐĂůĞǁĂƐƌĞĐŽŐŶŝnjĞĚĂƐƌĞǀĞŶƵĞďLJ^ƵƉƉůŝĞƌ͘ /Ĩcollected by Supplier, ƚŚĞZĞƉŽƌƚŵĂLJŝŶĐůƵĚĞƚŚĞĨŽůůŽǁŝŶŐĮĞůĚƐĂƐĂǀĂŝůĂďůĞ͗
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x WĂƌƟĐŝƉĂƟŶŐ
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ŶƟƚLJŽŶƚĂĐƚ
ŵĂŝůĚĚƌĞƐƐ͖
x WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJŽŶƚĂĐƚdĞůĞƉŚŽŶĞEƵŵďĞƌ͖
7) ĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞ͘ /ŶĐŽŶƐŝĚĞƌĂƟŽŶĨŽƌƚŚĞƐƵƉƉŽƌƚĂŶĚƐĞƌǀŝĐĞƐƉƌŽǀŝĚĞĚďLJ^ŽƵƌĐĞǁĞůů͕^ƵƉƉůŝĞƌ ǁŝůůƉĂLJĂŶĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞƚŽ^ŽƵƌĐĞǁĞůůŽŶĂůůĐŽŵƉůĞƚĞĚƚƌĂŶƐĂĐƟŽŶƐƚŽWĂƌƟĐŝƉĂƟŶŐ ŶƟƟĞƐ
ƵƟůŝnjŝŶŐƚŚŝƐŐƌĞĞŵĞŶƚ͘^ƵƉƉůŝĞƌǁŝůůŝŶĐůƵĚĞŝƚƐĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞǁŝƚŚin its proposed pricing. ^ƵƉƉůŝĞƌŵĂLJŶŽƚĚŝƌĞĐƚůLJĐŚĂƌŐĞWĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐƚŽŽīƐĞƚƚŚĞĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞ͘
ϴͿ &ĞĞĂůĐƵůĂƟŽŶ͘ ^ƵƉƉůŝĞƌ͛ƐĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞƉĂLJĂďůĞƚŽ^ŽƵƌĐĞǁĞůůǁŝůůďĞĐĂůĐƵůĂƚĞĚĂƐĂƐƚĂƚĞĚ ƉĞƌĐĞŶƚĂŐĞ;ůŝƐƚĞĚŝŶ^ƵƉƉůŝĞƌ͛ƐWƌŽƉŽƐĂůͿŽĨĂůůĐŽŵƉůĞƚĞĚƚƌĂŶƐĂĐƟŽŶƐƵƟůŝnjŝŶŐƚŚŝƐDĂƐƚĞƌ ŐƌĞĞŵĞŶƚǁŝƚŚŝŶƚŚĞƉƌĞĐĞĚŝŶŐZĞƉŽƌƟŶŐWĞƌŝŽĚ͘ &ŽƌĐĞƌƚĂŝŶcategories, a ŇĂƚĨĞĞ may be proposed. dŚĞĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞǁŝůůďĞƐƚĂƚĞĚŝŶ^ƵƉƉůŝĞƌ͛ƐWƌŽƉŽƐĂů. 9) &ĞĞZĞŵŝƩĂŶĐĞ͘ ^ƵƉƉůŝĞƌǁŝůůƌĞŵŝƚĨĞĞƚŽ^ŽƵƌĐĞǁĞůůŶŽůĂƚĞƌƚŚĂŶϰϱĐĂůĞŶĚĂƌĚĂLJƐĂŌĞƌƚŚĞĐůŽƐĞ ŽĨƚŚĞƉƌĞĐĞĚŝŶŐĐĂůĞŶĚĂƌƋƵĂƌƚĞƌŝŶĐŽŶũƵŶĐƟŽŶǁŝƚŚ^ƵƉƉůŝĞƌ͛ƐZĞƉŽƌƟŶŐWĞƌŝŽĚŽďůŝŐĂƟŽŶƐ ĚĞĮŶĞĚŚĞƌĞŝŶ͘WĂLJŵĞŶƚƐƐŚŽƵůĚŶŽƚĞƚŚĞ^ƵƉƉůŝĞƌ͛ƐŶĂŵĞĂŶĚ^ŽƵƌĐĞǁĞůů-assigned Agreement ŶƵŵďĞƌŝŶƚŚĞŵĞŵŽ͖ĂŶĚŵƵƐƚďĞĞŝƚŚĞƌŵĂŝůĞĚto Sourcewell ĂďŽǀĞ͞ƩŶ͗ĐĐŽƵŶƚƐZĞĐĞŝǀĂďůĞ͟Žƌ ƌĞŵŝƩĞĚĞůĞĐƚƌŽŶŝĐĂůůLJƚŽ^ŽƵƌĐĞǁĞůů͛ƐďĂŶŬŝŶŐŝŶƐƟƚƵƟŽŶƉĞƌ^ŽƵƌĐĞǁĞůů͛Ɛ&ŝŶĂŶĐĞĚĞƉĂƌƚŵĞŶƚ ŝŶƐƚƌƵĐƟŽŶƐ͘
10) EŽŶĐŽŵƉůŝĂŶĐĞ͘ Sourcewell reserves the right to seek all remedies available ĂƚůĂǁĨŽƌƵŶƉĂŝĚŽƌ ƵŶĚĞƌƉĂŝĚĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞƐĚƵĞƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚ͘&ĂŝůƵƌĞƚŽƌĞŵŝƚƉĂLJŵĞŶƚ͕ĚĞůŝŶƋƵĞŶƚ payments͕ƵŶĚĞƌƉĂLJŵĞŶƚƐ͕ŽƌŽƚŚĞƌĚĞǀŝĂƟŽŶƐĨƌŽŵƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚŝƐŐƌĞĞŵĞŶƚŵĂLJďĞ ĚĞĞŵĞĚĂŵĂƚĞƌŝĂůďƌĞĂĐŚĂŶĚŵĂLJƌĞƐƵůƚŝŶĐĂŶĐĞůůĂƟŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚĂŶĚĚŝƐďĂƌŵĞŶƚĨƌŽŵ ĨƵƚƵƌĞŐƌĞĞŵĞŶƚƐ͘
11) ƵĚŝƚZĞƋƵŝƌĞŵĞŶƚƐ͘ Pursuant to Minn. Stat. Α 16C.05, subdivision 5, the books, records, ĚŽĐƵŵĞŶƚƐ͕ĂŶĚĂĐĐŽƵŶƟŶŐƉƌŽĐĞĚƵƌĞƐĂŶĚƉƌĂĐƟĐĞƐƌĞůĞǀĂŶƚƚŽƚŚŝƐŐƌĞĞŵĞŶƚĂƌĞƐƵďũĞĐƚƚŽ ĞdžĂŵŝŶĂƟŽŶďLJ^ŽƵƌĐĞǁĞůůand ƚŚĞDŝŶŶĞƐŽƚĂ^ƚĂƚĞƵĚŝƚŽƌĨŽƌĂŵŝŶŝŵƵŵŽĨƐŝdžLJĞĂƌƐĨƌŽŵƚŚĞĞŶĚ ŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘^ƵƉƉůŝĞƌĂŐƌĞĞƐƚŽĨƵůůLJĐŽŽƉĞƌĂƚĞǁŝƚŚ^ŽƵƌĐĞǁĞůůŝŶĂƵĚŝƟŶŐƚƌĂŶƐĂĐƟŽŶƐƵŶĚĞƌ ƚŚŝƐŐƌĞĞŵĞŶƚƚŽĞŶƐƵƌĞĐŽŵƉůŝĂŶĐĞǁŝƚŚƉƌŝĐŝŶŐƚĞƌŵƐ͕ĐŽƌƌĞĐƚĐĂůĐƵůĂƟŽŶĂŶĚƌĞŵŝƩĂŶĐĞŽĨ ĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞƐ͕ĂŶĚǀĞƌŝĮĐĂƟŽŶŽĨƚƌĂŶƐĂĐƟŽŶƐĂƐŵĂLJďĞƌĞƋƵĞƐƚĞĚďLJĂWĂƌƟĐŝƉĂƟŶŐ ŶƟƚLJŽƌ
Sourcewell. ůůĂƵĚŝƚƐǁŝůůďĞƐƵďũĞĐƚƚŽƌĞĂƐŽŶĂďůĞĐŽŶĚŝƟŽŶƐ^ƵƉƉůŝĞƌŵĂLJŝŵƉŽƐĞƚŽƉƌŽƚĞĐƚƚŚĞ ĐŽŶĮĚĞŶƟĂůŝƚLJ͕ŝŶƚĞŐƌŝƚLJ͕ĂŶĚĂǀĂŝůĂďŝůŝƚLJŽĨŝƚƐĚĂƚĂĂŶĚƐLJƐƚĞŵƐ͕ǁŝůůďĞĐŽŶĚƵĐƚĞĚĚƵƌŝŶŐ^ƵƉƉůŝĞƌ͛Ɛ ŶŽƌŵĂůďƵƐŝŶĞƐƐŚŽƵƌƐ͕ǁŝƚŚƌĞĂƐŽŶĂďůĞĂĚǀĂŶĐĞǁƌŝƩĞŶŶŽƟĐĞƚo Supplier, and with minimal ĚŝƐƌƵƉƟŽŶƚŽ^ƵƉƉůŝĞƌ͛ƐďƵƐŝŶĞƐƐ͘
12) ƐƐŝŐŶŵĞŶƚ͕dƌĂŶƐĨĞƌ͕and ĚŵŝŶŝƐƚƌĂƟǀĞŚĂŶŐĞƐ͘^ƵƉƉůŝĞƌŵĂLJŶŽƚĂƐƐŝŐŶŽƌŽƚŚĞƌǁŝƐĞƚƌĂŶƐĨĞƌŝƚƐ ƌŝŐŚƚƐŽƌŽďůŝŐĂƟŽŶƐƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚǁŝƚŚŽƵƚƚŚĞƉƌŝŽƌǁƌŝƩĞŶĐŽŶƐĞŶƚŽĨ^ŽƵƌĐĞǁĞůů͘^ƵĐŚ consent will not be unreasonably withheld. Sourcewell reserves the right to unilaterally assign all or ƉŽƌƟŽŶƐŽĨƚŚŝƐŐƌĞĞŵĞŶƚǁŝƚŚŝŶŝƚƐƐŽůĞĚŝƐĐƌĞƟŽŶƚŽĂĚĚƌĞƐƐĐŽƌƉŽƌĂƚĞƌĞƐƚƌƵĐƚƵƌŝŶŐƐ͕ŵĞƌŐĞƌƐ͕ ĂĐƋƵŝƐŝƟŽŶƐ͕ŽƌŽƚŚĞƌĐŚĂŶŐĞƐƚŽƚŚĞZesponsible Party and named in the Agreement. Any prohibited ĂƐƐŝŐŶŵĞŶƚŝƐŝŶǀĂůŝĚ͘hƉŽŶƌĞƋƵĞƐƚ Sourcewell may make adminisƚƌĂƟǀĞĐŚĂŶŐĞƐƚŽĂŐƌĞĞŵĞŶƚ ĚŽĐƵŵĞŶƚĂƟŽŶƐƵĐŚĂƐŶĂŵĞĐŚĂŶŐĞƐ͕ĂĚĚƌĞƐƐĐŚĂŶŐĞƐ͕ĂŶĚŽƚŚĞƌŶŽŶ-material updates as determined ǁŝƚŚŝŶŝƚƐƐŽůĞĚŝƐĐƌĞƟŽŶ͘
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ϭϯͿ ŵĞŶĚŵĞŶƚƐ͘ ŶLJŵĂƚĞƌŝĂůĐŚĂŶŐĞƚŽƚŚŝƐŐƌĞĞŵĞŶƚŵƵƐƚďĞĞdžĞĐƵƚĞĚŝŶǁƌŝƟŶŐƚŚƌŽƵŐŚĂŶ ĂŵĞŶĚŵĞŶƚĂŶĚǁŝůůŶŽƚďĞĞīĞĐƟǀĞƵŶƟůŝƚŚĂƐďĞĞŶĚƵůLJĞdžĞĐƵƚĞĚďLJƚŚĞƉĂƌƟĞƐ. 14) tĂŝǀĞƌ͘ &ĂŝůƵƌĞďLJ a party to ĞŶĨŽƌĐĞĂŶLJƌŝŐŚƚƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚǁŝůůŶŽƚďĞĚĞĞŵĞĚĂǁĂŝǀĞƌŽĨ ƐƵĐŚƌŝŐŚƚŝŶƚŚĞĞǀĞŶƚŽĨƚŚĞĐŽŶƟŶƵĂƟŽŶŽƌƌĞƉĞƟƟŽŶŽĨƚŚĞĐŝƌĐƵŵƐƚĂŶĐĞƐŐŝǀŝŶŐƌŝƐĞƚŽƐƵĐŚƌŝŐŚƚ͘ 15) ŽŵƉůĞƚĞŐƌĞĞŵĞŶƚ͘ dŚŝƐŐƌĞĞŵĞŶƚƌĞƉƌĞƐĞŶƚƐƚŚĞĐŽŵƉůĞƚĞĂŐƌĞĞŵĞŶƚďĞƚǁĞĞŶƚŚĞƉĂƌƟĞƐ ĨŽƌ ƚŚĞƐĐŽƉĞĂƐĚĞĮŶĞĚŚĞƌĞŝŶ͘^ƵƉƉůŝĞƌĂŶĚ^ŽƵƌĐĞǁĞůůŵĂLJĞŶƚĞƌŝŶƚŽƐĞƉĂƌĂƚĞǁƌŝƩĞŶĂŐƌĞĞŵĞŶƚƐ ƌĞůĂƟŶŐƐƉĞĐŝĮĐĂůůLJƚŽƚƌĂŶƐĂĐƟŽŶƐŽƵƚƐŝĚĞŽĨƚŚĞƐĐŽƉĞŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͘ 16) ZĞůĂƟŽŶƐŚŝƉŽĨ^ŽƵƌĐĞǁĞůůĂŶĚ^ƵƉƉůŝĞƌ͘ dŚŝƐŐƌĞĞŵĞŶƚĚŽĞƐŶŽƚĐƌĞĂƚĞĂƉĂƌƚŶĞƌƐŚŝƉ͕ũŽŝŶƚ ǀĞŶƚƵƌĞ͕ŽƌĂŶLJŽƚŚĞƌƌĞůĂƟŽŶƐŚŝƉƐƵĐŚĂƐĞŵƉůŽLJĞĞ͕ŝŶĚĞƉĞŶĚĞŶƚĐŽŶƚƌĂĐƚŽƌ͕ŵĂƐƚĞƌ-servant, or principal-agent.
17) /ŶĚĞŵŶŝĮĐĂƟŽŶ͘ ^ƵƉƉůŝĞƌŵƵƐƚŝŶĚĞŵŶŝĨLJ͕ĚĞĨĞŶĚ͕ƐĂǀĞ͕ĂŶĚŚŽůĚ^ŽƵƌĐĞǁĞůů͕ŝŶĐůƵĚŝŶŐƚŚĞŝƌĂŐĞŶƚƐ ĂŶĚĞŵƉůŽLJĞĞƐ͕ŚĂƌŵůĞƐƐĨƌŽŵĂŶLJthird-party ĐůĂŝŵƐŽƌĐĂƵƐĞƐŽĨĂĐƟŽŶ͕ŝŶĐůƵĚŝŶŐreasonable ĂƩŽƌŶĞLJƐ͛ĨĞĞƐŝŶĐƵƌƌĞĚďLJ^ŽƵƌĐĞǁĞůů͕ĨŽƌďŽĚŝůLJŝŶũƵƌLJ͕ŝŶĐůƵĚŝŶŐĚĞĂƚŚ͕ŽƌƌĞĂůŽƌƚĂŶŐŝďůĞƉƌŽƉĞƌƚLJ damage, ĂƌŝƐŝŶŐŽƵƚŽĨĂŶLJĂĐƚŽƌŽŵŝƐƐŝŽŶŝŶƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚŝƐŐƌĞĞŵĞŶƚďLJƚŚĞ^ƵƉƉůŝĞƌŽƌ its agents or employees ƚŽƚŚĞĞdžƚĞŶƚĐĂƵƐĞĚďLJƚŚĞŶĞŐůŝŐĞŶĐĞ;ŽƌŐƌĞĂƚĞƌĐƵůƉĂďŝůŝƚLJͿŽĨ^ƵƉƉůŝĞƌŽƌ its agents or employees͖ƚŚŝƐŝŶĚĞŵŶŝĮĐĂƟŽŶŝŶĐůƵĚĞƐŝŶũƵƌLJŽƌĚĞĂƚŚƚŽƉĞƌƐŽŶ;ƐͿŽƌƉƌŽƉĞƌƚLJ ĂůůĞŐĞĚƚŽŚĂǀĞďĞĞŶĐĂƵƐĞĚďLJƐŽŵĞĚĞĨĞĐƚŝŶĚĞƐŝŐŶ͕ĐŽŶĚŝƟŽŶ͕ŽƌƉĞƌĨŽƌŵĂŶĐĞŽĨ/ŶĐůƵĚĞĚ ^ŽůƵƟŽŶƐƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚ ƚŽƚŚĞĞdžƚĞŶƚƚŚĞ/ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐŚĂƐďĞĞŶƵƐĞĚĂĐĐŽƌĚŝŶŐƚŽŝƚƐ ƐƉĞĐŝĮĐĂƟŽŶƐ͘^ƵƉƉůŝĞƌ͛ƐŝŶĚĞŵŶŝĮĐĂƟŽŶŽďůŝŐĂƟŽŶƐƵŶĚĞƌƚŚŝƐƐĞĐƟŽŶĂƌĞĐŽŶĚŝƟŽŶĞĚƵƉŽŶƚŚĞ ŝŶĚĞŵŶŝĮĞĚƉĂƌƚLJ͗;ŝͿƉƌŽŵƉƚůLJŶŽƟĨLJŝŶŐ^ƵƉƉůŝĞƌŽĨĂŶLJĐůĂŝŵŝŶǁƌŝƟŶŐ͖ĂŶĚ͕;ŝŝͿĐŽŽƉĞƌĂƟŶŐǁŝƚŚ ^ƵƉƉůŝĞƌŝŶƚŚĞĚĞĨĞŶƐĞŽĨƚŚĞĐůaim͘^ŽƵƌĐĞǁĞůů͛ƐƌĞƐƉŽŶƐŝďŝůŝƚLJǁŝůůďĞŐŽǀĞƌŶĞĚďLJƚŚĞ^ƚĂƚĞŽĨ DŝŶŶĞƐŽƚĂ͛ƐdŽƌƚ>ŝĂďŝůŝƚLJĐƚ;DŝŶŶĞƐŽƚĂ^ƚĂƚƵƚĞƐŚĂƉƚĞƌϰϲϲͿĂŶĚŽƚŚĞƌĂƉƉůŝĐĂďůĞůĂǁ͘ Supplier is ŶŽƚůŝĂďůĞƚŽ^ŽƵƌĐĞǁĞůůŽƌWĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐƵŶĚĞƌƚŚŝƐAgreement ĨŽƌĂŶLJŝŶĚŝƌĞĐƚ͕ŝŶĐŝĚĞŶƚĂů͕ ƐƉĞĐŝĂů͕ƉƵŶŝƟǀĞ͕ĞdžĞŵƉůĂƌLJ͕ŽƌĐŽŶƐĞƋƵĞŶƟĂůĚĂŵĂŐĞƐ;ŝŶĐůƵĚŝŶŐ͕ǁŝƚŚŽƵƚůŝŵŝƚĂƟŽŶ͕ĚĂŵĂŐĞƐĨŽƌ ŝŶƚĞƌƌƵƉƟŽŶŽĨƐĞƌǀŝĐĞƐ͕ůŽƐƐŽĨďƵƐŝŶĞƐƐ͕ůŽƐƐŽĨƉƌŽĮƚƐ͕ůŽƐƐŽĨƌĞǀĞŶƵĞ͕ůŽƐƐŽĨĚĂƚĂ͕ŽƌůŽƐƐŽƌ ŝŶĐƌĞĂƐĞĚĞdžƉĞŶƐĞŽĨƵƐĞ), whether in aŶĂĐƟŽŶŝŶĐŽŶƚƌĂĐƚ͕ǁĂƌƌĂŶƚLJ͕ƚŽƌƚ;ŝŶĐůƵĚŝŶŐ͕ǁŝƚŚŽƵƚ ůŝŵŝƚĂƟŽŶ͕ŶĞŐůŝŐĞŶĐĞͿ͕ŽƌƐƚƌŝĐƚůŝĂďŝůŝƚLJ͕ĞǀĞŶŝĨƚŚĞƉĂƌƟĞƐŚĂǀĞďĞĞŶĂĚǀŝƐĞĚŽĨƚŚĞƉŽƐƐŝďŝůŝƚLJŽĨ ƐƵĐŚůŝĂďŝůŝƟĞƐ͘
ϭϴͿ ĂƚĂWƌĂĐƟĐĞƐ͘ ^ƵƉƉůŝĞƌĂŶĚ^ŽƵƌĐĞǁĞůůĂĐŬŶŽǁůĞĚŐĞ^ŽƵƌĐĞǁĞůůŝƐƐƵďũĞĐƚƚŽƚŚĞDŝŶŶĞƐŽƚĂ 'ŽǀĞƌŶŵĞŶƚĂƚĂWƌĂĐƟĐĞƐĐƚ͕DŝŶŶĞƐŽƚĂ^ƚĂƚƵƚĞƐŚĂƉƚĞƌϭϯ͘ƐŝƚĂƉƉůŝĞƐƚŽĂůůĚĂƚĂĐƌĞĂƚĞĚĂŶĚ ŵĂŝŶƚĂŝŶĞĚŝŶƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͕^ƵƉƉůŝĞƌŵĂLJďĞƐƵďũĞĐƚƚŽƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚŝƐ chapter.
19) 'ƌĂŶƚŽĨ>ŝĐĞŶƐĞ͘
a) ƵƌŝŶŐƚŚĞƚĞƌŵŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͗
i) ^ƵƉƉůŝĞƌWƌŽŵŽƟŽŶ͘ Sourcewell grants to Supplier a royalty-ĨƌĞĞ͕ǁŽƌůĚǁŝĚĞ͕ŶŽŶ-exclusive ƌŝŐŚƚĂŶĚůŝĐĞŶƐĞƚŽƵƐĞƚŚĞƚƌĂĚĞŵĂƌŬ;ƐͿƉƌŽǀŝĚĞĚƚŽ^ƵƉƉůŝĞƌďLJ^ŽƵƌĐĞǁĞůůŝŶĂĚǀĞƌƟƐŝŶŐ͕ ƉƌŽŵŽƟŽŶĂůŵĂƚĞƌŝĂůƐ͕ĂŶĚŝŶĨŽƌŵĂƟŽŶĂůƐŝƚĞƐĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨŵĂƌŬĞƟŶŐ^ŽƵƌĐĞǁĞůů͛Ɛ Agreement with Supplier.
ii) ^ŽƵƌĐĞǁĞůůWƌŽŵŽƟŽŶ͘ Supplier grants to Sourcewell a royalty-ĨƌĞĞ͕ǁŽƌůĚǁŝĚĞ͕ŶŽŶĞdžĐůƵƐŝǀĞƌŝŐŚƚĂŶĚůŝĐĞŶƐĞƚŽƵƐĞ^ƵƉƉůŝĞƌ͛ƐƚƌĂĚĞŵĂƌŬƐŝŶĂĚǀĞƌƟƐŝŶŐ͕ƉƌŽŵŽƟŽŶĂů
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ŵĂƚĞƌŝĂůƐ͕ĂŶĚŝŶĨŽƌŵĂƟŽŶĂůƐŝƚĞƐĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨŵĂƌŬĞƟŶŐ^ƵƉƉůŝĞƌ͛ƐŐƌĞĞŵĞŶƚǁŝƚŚ Sourcewell.
b) >ŝŵŝƚĞĚZŝŐŚƚŽĨ^ƵďůŝĐĞŶƐĞ͘ dŚĞƌŝŐŚƚĂŶĚůŝĐĞŶƐĞŐƌĂŶƚĞĚŚĞƌĞŝŶŝŶĐůƵĚĞƐĂůŝŵŝƚĞĚƌŝŐŚƚŽĨĞĂĐŚ ƉĂƌƚLJƚŽŐƌĂŶƚƐƵďůŝĐĞŶƐĞƐƚŽƚŚĞŝƌƌĞƐƉĞĐƟǀĞƐƵďƐŝĚŝĂƌŝĞƐ͕ĚŝƐƚƌŝďƵƚŽƌƐ͕ĚĞĂůĞƌƐ͕ƌĞƐĞůůĞƌƐ͕ ŵĂƌŬĞƟŶŐƌĞƉƌĞƐĞŶƚĂƟǀĞƐ͕ƉĂƌƚŶĞƌƐ͕ŽƌĂŐĞŶƚƐ;ĐŽůůĞĐƟǀĞůLJ͞WĞƌŵŝƩĞĚ^ƵďůŝĐĞŶƐĞĞƐ͟ͿŝŶ ĂĚǀĞƌƟƐŝŶŐ͕ƉƌŽŵŽƟŽŶĂů͕ŽƌŝŶĨŽƌŵĂƟŽŶĂůŵĂƚĞƌŝĂůƐĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨŵĂƌŬĞƟŶŐƚŚĞWĂƌƟĞƐ͛ ƌĞůĂƟŽŶƐŚŝƉ͘ŶLJƐƵďůŝĐĞŶƐĞŐƌĂŶƚĞĚǁŝůůďĞƐƵďũĞĐƚƚŽƚŚĞƚĞƌŵƐĂŶĚĐŽŶĚŝƟŽŶƐŽĨƚŚŝƐƌƟĐůĞ͘
ĂĐŚƉĂƌƚLJǁŝůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌĂŶLJďƌĞĂĐŚŽĨƚŚŝƐƐĞĐƟŽŶ bLJĂŶLJŽĨƚŚĞŝƌƌĞƐƉĞĐƟǀĞ sublicensees.
c) hƐĞ͖YƵĂůŝƚLJŽŶƚƌŽů͘
i) EĞŝƚŚĞƌƉĂƌƚLJŵĂLJĂůƚĞƌƚŚĞŽƚŚĞƌƉĂƌƚLJ͛ƐƚƌĂĚĞŵĂƌŬƐĨƌŽŵƚŚĞĨŽƌŵƉƌŽǀŝĚĞĚĂŶĚŵƵƐƚ ĐŽŵƉůLJǁŝƚŚƌĞŵŽǀĂůƌĞƋƵĞƐƚƐĂƐƚŽƐƉĞĐŝĮĐƵƐĞƐŽĨŝƚƐƚƌĂĚĞŵĂƌŬƐŽƌůŽŐŽƐ. ii)
ĂĐŚƉĂƌƚLJĂŐƌĞĞƐƚŽƵƐĞ͕ĂŶĚƚŽĐĂƵƐĞŝƚƐWĞƌŵŝƩĞĚ^ƵďůŝĐĞŶƐĞĞƐƚŽƵƐĞ͕ƚŚĞŽƚŚĞƌƉĂƌƚLJ͛Ɛ ƚƌĂĚĞŵĂƌŬƐŽŶůLJŝŶŐŽŽĚĨĂŝƚŚĂŶĚŝŶĂĚŝŐŶŝĮĞĚŵĂŶŶĞƌĐŽŶƐŝƐƚĞŶƚǁŝƚŚƐƵĐŚƉĂƌƚLJ͛ƐƵƐĞŽĨ ƚŚĞƚƌĂĚĞŵĂƌŬƐ͘
ĂĐŚƉĂƌƚLJŵĂLJŵĂŬĞǁƌŝƩĞŶŶŽƟĐĞƚŽƚŚĞŽƚŚĞƌƌĞŐĂƌĚŝŶg misuse under ƚŚŝƐƐĞĐƟŽŶ͘dŚĞŽīĞŶĚŝŶŐƉĂƌƚLJǁŝůůŚĂǀĞϯϬĚĂLJƐŽĨƚŚĞĚĂƚĞŽĨƚŚĞǁƌŝƩĞŶŶŽƟĐĞƚŽĐƵƌĞ ƚŚĞŝƐƐƵĞŽƌƚŚĞůŝĐĞŶƐĞͬƐƵďůŝĐĞŶƐĞǁŝůůďĞƚĞƌŵŝŶĂƚĞĚ͘ d) dĞƌŵŝŶĂƟŽŶ͘ hƉŽŶƚŚĞƚĞƌŵŝŶĂƟŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚĨŽƌĂŶLJƌĞĂƐŽŶ͕ĞĂĐŚƉĂƌƚLJ͕ŝŶĐůƵĚŝŶŐ WĞƌŵŝƩĞĚ^ƵďůŝĐĞŶƐĞĞƐ͕ǁŝůůŚĂǀĞϯϬĚĂLJƐƚŽƌĞŵŽǀĞĂůůdƌĂĚĞŵĂƌŬƐĨƌŽŵƐŝŐŶĂŐĞ͕ǁĞďƐŝƚĞƐ͕ĂŶĚ ƚŚĞůŝŬĞďĞĂƌŝŶŐƚŚĞŽƚŚĞƌƉĂƌƚLJ͛ƐŶĂŵĞŽƌůŽŐŽ;ĞdžĐĞƉƟŶŐ^ŽƵƌĐĞǁĞůů͛ƐƉƌĞ-printed ĐĂƚĂůŽŐŽĨ ƐƵƉƉůŝĞƌƐǁŚŝĐŚŵĂLJďĞƵƐĞĚƵŶƟůƚŚĞŶĞdžƚƉƌŝŶƟŶŐͿ͘^ƵƉƉůŝĞƌŵƵƐƚƌĞƚƵƌŶĂůůŵĂƌŬĞƟŶŐĂŶĚ ƉƌŽŵŽƟŽŶĂůŵĂƚĞƌŝĂůƐ͕ŝŶĐůƵĚŝŶŐƐŝŐŶĂŐĞ͕ƉƌŽǀŝĚĞĚďLJ^ŽƵƌĐĞǁĞůů͕ŽƌĚŝƐƉŽƐĞŽĨŝƚĂĐĐŽƌĚŝŶŐƚŽ ^ŽƵƌĐĞǁĞůů͛ƐǁƌŝƩĞŶĚŝƌĞĐƟŽŶƐ͘
20) sĞŶƵĞĂŶĚ'ŽǀĞƌŶŝŶŐůĂǁďĞƚǁĞĞŶ^ŽƵƌĐĞǁĞůůĂŶĚ^ƵƉƉůŝĞƌKŶůLJ͘ dŚĞƐƵďƐƚĂŶƟǀĞĂŶĚƉƌŽĐĞĚƵƌĂů ůĂǁƐŽĨƚŚĞ^ƚĂƚĞŽĨDŝŶŶĞƐŽƚĂǁŝůůŐŽǀĞƌŶƚŚŝƐŐƌĞĞŵĞŶƚďĞƚǁĞĞŶ^ŽƵƌĐĞǁĞůůĂŶĚ^ƵƉƉůŝĞƌ͘sĞŶƵĞ ĨŽƌĂůůůĞŐĂůƉƌŽĐĞĞĚŝŶŐƐĂƌŝƐŝŶŐŽƵƚŽĨƚŚŝƐŐƌĞĞŵĞŶƚďĞƚǁĞĞŶ^ŽƵƌĐĞǁĞůůĂŶĚ^ƵƉƉůŝĞƌǁŝůůďĞŝŶ ĐŽƵƌƚŽĨĐŽŵƉĞƚĞŶƚũƵƌŝƐĚŝĐƟŽŶǁŝƚŚŝŶƚŚĞ^ƚĂƚĞŽĨDŝŶŶĞƐŽƚĂ͘dŚŝƐƐĞĐƟŽŶĚŽĞƐŶŽƚĂƉƉůLJƚŽĂŶLJ ĚŝƐƉƵƚĞďĞƚǁĞĞŶ^ƵƉƉůŝĞƌĂŶĚWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ͘dŚŝƐŐƌĞĞŵĞŶƚƌĞƐĞƌǀĞƐƚŚĞƌŝŐŚƚĨŽƌ^ƵƉƉůŝĞƌĂŶĚ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJƚŽŶĞŐŽƟĂƚĞƚŚŝƐƚĞƌŵƚŽǁŝƚŚŝŶĂŶLJƚƌĂŶƐĂĐƟŽŶĚŽĐƵŵĞŶƚƐ. 21) ^ĞǀĞƌĂďŝůŝƚLJ͘ /ĨĂŶLJƉƌŽǀŝƐŝŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚŝƐĨŽƵŶĚďLJĂĐŽƵƌƚŽĨĐŽŵƉĞƚĞŶƚũƵƌŝƐĚŝĐƟŽŶƚŽďĞ ŝůůĞŐĂů͕ƵŶĞŶĨŽƌĐĞĂďůĞ͕ŽƌǀŽŝĚƚŚĞŶďŽƚŚƉĂƌƟĞƐǁŝůůďĞƌĞůŝĞǀĞĚĨƌŽŵĂůůŽďůŝŐĂƟŽŶƐĂƌŝƐŝŶŐĨƌŽŵƚŚĂƚ ƉƌŽǀŝƐŝŽŶ͘/ĨƚŚĞƌĞŵĂŝŶĚĞƌŽĨƚŚŝƐŐƌĞĞŵĞŶƚŝƐĐĂƉĂďůĞŽĨďĞŝŶŐƉĞƌĨŽƌŵĞĚ͕ŝƚǁŝůůŶŽƚďĞĂīĞĐƚĞĚ ďLJƐƵĐŚĚĞƚĞƌŵŝŶĂƟŽŶŽƌĮŶĚŝŶŐĂŶĚŵƵƐƚďĞĨƵůůLJƉĞƌĨŽƌŵĞĚ͘ 22) /ŶƐƵƌĂŶĐĞŽǀĞƌĂŐĞ͘ At its own expense, Supplier must maintain valid insurance policy(ies) during ƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚŝƐŐƌĞĞŵĞŶƚǁŝƚŚŝŶƐƵƌĂŶĐĞĐŽŵƉĂŶLJ;ŝĞƐͿůŝĐĞŶƐĞĚŽƌĂƵƚŚŽƌŝnjĞĚƚŽĚŽ ďƵƐŝŶĞƐƐŝŶƚŚĞ^ƚĂƚĞŽĨDŝŶŶĞƐŽƚĂŚĂǀŝŶŐĂŶ͞D
^d͟ƌĂƟŶŐŽĨ- ŽƌďĞƩĞƌ͕ǁŝƚŚĐŽverage and
ůŝŵŝƚƐŽĨŝŶƐƵƌĂŶĐĞŶŽƚůĞƐƐƚŚĂŶƚŚĞĨŽůůŽǁŝŶŐ͗
a) ŽŵŵĞƌĐŝĂů'ĞŶĞƌĂů>ŝĂďŝůŝƚLJ/ŶƐƵƌĂŶĐĞ͘ ^ƵƉƉůŝĞƌǁŝůůŵĂŝŶƚĂŝŶŝŶƐƵƌĂŶĐĞĐŽǀĞƌŝŶŐŝƚƐŽƉĞƌĂƟŽŶƐ͕ ǁŝƚŚĐŽǀĞƌĂŐĞŽŶĂŶŽĐĐƵƌƌĞŶĐĞďĂƐŝƐ͕ĂŶĚŵƵƐƚďĞƐƵďũĞĐƚƚŽƚĞƌŵƐŶŽůĞƐƐďƌŽĂĚƚŚĂŶƚŚĞ /ŶƐƵƌĂŶĐĞ^ĞƌǀŝĐĞƐKĸĐĞ;͞/^K͟ͿŽŵŵĞƌĐŝĂů'ĞŶĞƌĂů>ŝĂďŝůŝƚLJ&Žƌŵ'ϬϬϬϭ;ϮϬϬϭŽƌŶĞǁĞƌ ĞĚŝƟŽŶͿ͕ŽƌĞƋƵŝǀĂůĞŶƚ͘ƚĂŵŝŶŝŵƵŵ͕ĐŽǀĞƌĂŐĞŵƵƐƚŝŶĐůƵĚĞůŝĂďŝůŝƚLJĂƌŝƐŝŶŐĨƌŽŵƉƌĞŵŝƐĞƐ͕
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ŽƉĞƌĂƟŽŶƐ͕ďŽĚŝůLJŝŶũƵƌLJĂŶĚƉƌŽƉĞƌƚLJĚĂŵĂŐĞ͕ŝŶĚĞƉĞŶĚĞŶƚĐŽŶƚƌĂĐƚŽƌƐ͕ƉƌŽĚƵĐƚƐ-completed ŽƉĞƌĂƟŽŶƐŝŶĐůƵĚŝŶŐĐŽŶƐƚƌƵĐƟŽŶĚĞĨĞĐƚ͕ĐŽŶƚƌĂĐƚƵĂůůŝĂďŝůŝƚLJ͕ďůĂŶŬĞƚĐŽŶƚƌĂĐƚƵĂůůŝĂďŝůŝƚLJ͕ĂŶĚ ƉĞƌƐŽŶĂůŝŶũƵƌLJĂŶĚĂĚǀĞƌƟƐŝŶŐŝŶũƵƌLJ͘ůůƌĞƋƵŝƌĞĚůŝŵŝƚƐ͕ƚĞƌŵƐĂŶĚĐŽŶĚŝƟŽŶƐŽĨĐŽǀĞƌĂŐĞŵƵƐƚ ďĞŵĂŝŶƚĂŝŶĞĚĚƵƌŝŶŐƚŚĞƚĞƌŵŽĨƚŚŝƐAgreement.
x Ψϭ͕ϱϬϬ͕ϬϬϬĞĂĐŚŽĐĐƵƌƌĞŶĐĞŽĚŝůLJ/ŶũƵƌLJĂŶĚWƌŽƉĞƌƚLJĂŵĂŐĞ x Ψϭ͕ϱϬϬ͕ϬϬϬWĞƌƐŽŶĂůĂŶĚĚǀĞƌƟƐŝŶŐ/ŶũƵƌLJ
x ΨϮ͕ϬϬϬ͕ϬϬϬĂŐŐƌĞŐĂƚĞĨŽƌƉƌŽĚƵĐƚƐůŝĂďŝůŝƚLJ-ĐŽŵƉůĞƚĞĚŽƉĞƌĂƟŽŶƐ x ΨϮ͕ϬϬϬ͕ϬϬϬŐĞŶĞƌĂůĂŐŐƌĞŐĂƚĞ
b) ĞƌƟĮĐĂƚĞƐŽĨ/ŶƐƵƌĂŶĐĞ͘ WƌŝŽƌƚŽĞdžĞĐƵƟŽŶŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͕^ƵƉƉůŝĞƌŵƵƐƚĨƵƌŶŝƐŚƚŽ ^ŽƵƌĐĞǁĞůůĂĐĞƌƟĮĐĂƚĞŽĨŝŶƐƵƌĂŶĐĞ͕ĂƐĞǀŝĚĞŶĐĞŽĨƚŚĞŝŶƐƵƌĂŶĐĞƌĞƋƵŝƌĞĚƵŶĚĞƌƚŚŝƐ ŐƌĞĞŵĞŶƚ͘WƌŝŽƌƚŽĞdžƉŝƌĂƟŽŶŽĨƚŚĞƉŽůŝĐLJ;ŝĞƐͿ͕ƌĞŶĞǁĂůĐĞƌƟĮĐĂƚĞƐŵƵƐƚďĞŵĂŝůĞĚƚŽ Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or provided to in an ĂůƚĞƌŶĂƟǀĞŵĂŶŶĞƌĂƐĚŝƌĞĐƚĞĚďLJ^ŽƵƌĐĞǁĞůů. ^ƵƉƉůŝĞƌĂŐƌĞĞƐƚŚĂƚƚŚĞƌĞŶĞǁĂůĐĞƌƟĮĐĂƚĞƐƐŚĂůů ďĞƉƌŽǀŝĚĞĚǁŝƚŚŝŶƚĞŶ;ϭϬͿĚĂLJƐĂŌĞƌƚŚĞŝŶĐĞƉƟŽŶŽĨƚŚĞƌĞŶĞǁĂůƉŽůŝĐŝĞƐĂŶĚƐŚĂůůďĞƉƌŽǀŝĚĞĚ ďLJ^ƵƉƉůŝĞƌ͛ƐŝŶƐƵƌĂŶĐĞďƌŽŬĞƌ;ƐͿ͘ dŚĞĐĞƌƟĮĐĂƚĞƐŵƵƐƚďĞƐŝŐŶĞĚďLJĂƉĞƌƐŽŶĂƵƚŚŽƌŝnjĞĚďLJƚŚĞ ŝŶƐƵƌĞƌ;ƐͿƚŽďŝŶĚĐŽǀĞƌĂŐĞŽŶƚŚĞŝƌďĞŚĂůĨ͘&ĂŝůƵƌĞŽĨ^ƵƉƉůŝĞƌƚŽŵĂŝŶƚĂŝŶƚŚĞƌĞƋƵŝƌĞĚŝŶƐƵƌĂŶĐĞ ĂŶĚĚŽĐƵŵĞŶƚĂƟŽŶŵĂLJĐŽŶƐƟƚƵƚĞĂŵĂƚĞƌŝĂůďƌĞĂĐŚ͘
c) ĚĚŝƟŽŶĂů/ŶƐƵƌĞĚ
ŶĚŽƌƐĞŵĞŶƚĂŶĚWƌŝŵĂƌLJĂŶĚEŽŶ-ĐŽŶƚƌŝďƵƚŽƌLJ/ŶƐƵƌĂŶĐĞůĂƵƐĞ͘ Supplier agrees to include ^ŽƵƌĐĞǁĞůů͕ŝŶĐůƵĚŝŶŐŝƚƐŽĸĐĞƌƐ͕ĂŐĞŶƚƐ͕ĂŶĚĞŵƉůŽLJĞĞƐ͕ĂƐĂŶĂĚĚŝƟŽŶĂů ŝŶƐƵƌĞĚƵŶĚĞƌƚŚĞ^ƵƉƉůŝĞƌ͛ƐĐŽŵŵĞƌĐŝĂůŐĞŶĞƌĂůůŝĂďŝůŝƚLJŝŶƐƵƌĂŶĐĞƉŽůŝĐLJǁŝƚŚƌĞƐƉĞĐƚƚŽůŝĂďŝůŝƚLJ ĂƌŝƐŝŶŐŽƵƚŽĨĂĐƟǀŝƟĞƐ͕͞ŽƉĞƌĂƟŽŶƐ͕͟Žƌ͞ǁŽƌŬ͟ƉĞƌĨŽƌŵĞĚďLJŽƌŽŶďĞŚĂůĨŽĨ Supplier, and ƉƌŽĚƵĐƚƐĂŶĚĐŽŵƉůĞƚĞĚŽƉĞƌĂƟŽŶƐŽĨ^ƵƉƉůŝĞƌ͘dŚĞƉŽůŝĐLJƉƌŽǀŝƐŝŽŶ;ƐͿŽƌĞŶĚŽƌƐĞŵĞŶƚ;ƐͿŵƵƐƚ ĨƵƌƚŚĞƌƉƌŽǀŝĚĞƚŚĂƚĐŽǀĞƌĂŐĞŝƐƉƌŝŵĂƌLJĂŶĚŶŽƚĞdžĐĞƐƐŽǀĞƌŽƌĐŽŶƚƌŝďƵƚŽƌLJǁŝƚŚĂŶLJŽƚŚĞƌ valid, applicable, and collĞĐƟďůĞŝŶƐƵƌĂŶĐĞŽƌƐĞůĨ-ŝŶƐƵƌĂŶĐĞŝŶĨŽƌĐĞĨŽƌƚŚĞĂĚĚŝƟŽŶĂůŝŶƐƵƌĞĚƐ͘ d) tĂŝǀĞƌŽĨ^ƵďƌŽŐĂƟŽŶ͘ ^ƵƉƉůŝĞƌǁĂŝǀĞƐĂŶĚŵƵƐƚƌĞƋƵŝƌĞ;ďLJĞŶĚŽƌƐĞŵĞŶƚŽƌŽƚŚĞƌǁŝƐĞͿĂůůŝƚƐ ŝŶƐƵƌĞƌƐƚŽǁĂŝǀĞƐƵďƌŽŐĂƟŽŶƌŝŐŚƚƐĂŐĂŝŶƐƚ^ŽƵƌĐĞǁĞůůĂŶĚŽƚŚĞƌĂĚĚŝƟŽŶĂůŝŶƐƵƌĞĚƐĨŽƌůŽƐƐĞƐ ƉĂŝĚƵŶĚĞƌƚŚĞŝŶƐƵƌĂŶĐĞƉŽůŝĐŝĞƐƌĞƋƵŝƌĞĚďLJƚŚŝƐŐƌĞĞŵĞŶƚŽƌŽƚŚĞƌŝŶƐƵƌĂŶĐĞĂƉƉůŝĐĂble to ƚŚĞ^ƵƉƉůŝĞƌŽƌŝƚƐƐƵďĐŽŶƚƌĂĐƚŽƌƐ͘dŚĞǁĂŝǀĞƌŵƵƐƚĂƉƉůLJƚŽĂůůĚĞĚƵĐƟďůĞƐĂŶĚͬŽƌƐĞůĨ-insured ƌĞƚĞŶƟŽŶƐĂƉƉůŝĐĂďůĞƚŽƚŚĞƌĞƋƵŝƌĞĚŽƌĂŶLJŽƚŚĞƌŝŶƐƵƌĂŶĐĞŵĂŝŶƚĂŝŶĞĚďLJƚŚĞ^ƵƉƉůŝĞƌŽƌŝƚƐ ƐƵďĐŽŶƚƌĂĐƚŽƌƐ͘tŚĞƌĞƉĞƌŵŝƩĞĚďLJůĂǁ͕^ƵƉƉůŝĞƌŵƵƐƚƌĞƋƵŝƌĞƐŝŵŝůĂƌǁƌŝƩĞŶĞdžƉƌĞƐƐǁĂŝǀĞƌƐ ŽĨƐƵďƌŽŐĂƟŽŶĂŶĚŝŶƐƵƌĂŶĐĞĐůĂƵƐĞƐĨƌŽŵĞĂĐŚŽĨŝƚƐƐƵďĐŽŶƚƌĂĐƚŽƌƐ͘ e) hŵďƌĞůůĂͬ
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Ed/KE͘ dŚĞůŝŵŝƚƐƌĞƋƵŝƌĞĚďLJƚŚŝƐAgreement can
ďĞŵĞƚďLJĞŝƚŚĞƌƉƌŽǀŝĚŝŶŐĂƉƌŝŵĂƌLJƉŽůŝĐLJŽƌŝŶĐŽŵďŝŶĂƟŽŶǁŝƚŚƵŵďƌĞůůĂͬĞdžĐĞƐƐůŝĂďŝůŝƚLJ ƉŽůŝĐLJ;ŝĞƐͿ͕ŽƌƐĞůĨ-ŝŶƐƵƌĞĚƌĞƚĞŶƟŽŶ͘
ϮϯͿ dĞƌŵŝŶĂƟŽŶĨŽƌŽŶǀĞŶŝĞŶĐĞ͘ Sourcewell or Supplier may terminate this Agreement upon 60 ĐĂůĞŶĚĂƌĚĂLJƐΖǁƌŝƩĞŶŶŽƟĐĞƚŽƚŚĞŽƚŚĞƌWĂƌƚLJ͘dĞƌŵŝŶĂƟŽŶƉƵƌƐƵĂŶƚƚŽƚŚŝƐƐĞĐƟŽŶǁŝůůŶŽƚƌĞůŝĞǀĞ ƚŚĞ^ƵƉƉůŝĞƌ͛ƐŽďůŝŐĂƟŽŶƐƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚĨŽƌany ƚƌĂŶƐĂĐƟŽŶƐĞŶƚĞƌĞĚǁŝƚŚWĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐƚŚƌŽƵŐŚƚŚĞĚĂƚĞŽĨƚĞƌŵŝŶĂƟŽŶ͕ŝŶĐůƵĚŝŶŐƌĞƉŽƌƟŶŐĂŶĚƉĂLJŵĞŶƚŽĨĂƉƉůŝĐĂďůĞ ĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞƐ͘
24) dĞƌŵŝŶĂƟŽŶĨŽƌĂƵƐĞ͘ ^ŽƵƌĐĞǁĞůůŵĂLJƚĞƌŵŝŶĂƚĞƚŚŝƐŐƌĞĞŵĞŶƚƵƉŽŶƉƌŽǀŝĚŝŶŐǁƌŝƩĞŶŶŽƟĐĞŽĨ ŵĂƚĞƌŝĂůďƌĞĂĐŚƚŽ^ƵƉƉůŝĞƌ͘EŽƟĐĞŵƵƐƚĚĞƐĐƌŝďĞƚŚĞďƌĞĂĐŚŝŶƌĞĂƐŽŶĂďůĞĚĞƚĂŝůĂŶĚƐƚĂƚĞƚŚĞ ŝŶƚĞŶƚƚŽƚĞƌŵŝŶĂƚĞƚŚĞŐƌĞĞŵĞŶƚ͘hƉŽŶƌĞĐĞŝƉƚŽĨEŽƟĐĞ͕ƚŚĞ^ƵƉƉůŝĞƌǁŝůůŚĂǀĞϯϬĐalendar days
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ŝŶǁŚŝĐŚŝƚŵƵƐƚĐƵƌĞƚŚĞďƌĞĂĐŚ͘dĞƌŵŝŶĂƟŽŶƉƵƌƐƵĂŶƚƚŽƚŚŝƐƐĞĐƟŽŶǁŝůůŶŽƚƌĞůŝĞǀĞƚŚĞ^ƵƉƉůŝĞƌ͛Ɛ ŽďůŝŐĂƟŽŶƐƵŶĚĞƌƚŚŝƐŐƌĞĞŵĞŶƚĨŽƌany ƚƌĂŶƐĂĐƟŽŶƐĞŶƚĞƌĞĚǁŝƚŚWĂƌƟĐŝƉĂƟŶŐ ŶƟƟĞƐƚŚƌŽƵŐŚƚŚĞ
ĚĂƚĞŽĨƚĞƌŵŝŶĂƟŽŶ͕ŝŶĐůƵĚŝŶŐƌĞƉŽƌƟŶŐĂŶĚƉĂLJŵĞŶƚŽĨĂƉƉůŝĐĂďůĞĚŵŝŶŝƐƚƌĂƟǀĞ&ĞĞƐ͘ ƌƟĐůĞϯ͗
^ƵƉƉůŝĞƌKďůŝŐĂƟŽŶƐƚŽWĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐ
dŚĞdĞƌŵƐŝŶƚŚŝƐƌƟĐůĞϯƌĞůĂƚĞƐƉĞĐŝĮĐĂůůLJƚŽ^ƵƉƉůŝĞƌĂŶĚĂWĂƌƟĐŝƉĂƟŶŐ ŶƟƚLJǁŚĞŶĞŶƚĞƌŝŶŐ
ƚƌĂŶƐĂĐƟŽŶƐƵƟůŝnjŝŶŐƚŚĞ'ĞŶĞƌĂůdĞƌŵƐĞƐƚĂďůŝƐŚĞĚŝŶƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚ͘ƌƟĐůĞϭ'ĞŶĞƌĂůdĞƌŵƐ ĐŽŶƚƌŽůŽǀĞƌĂŶLJĐŽŶŇŝĐƚǁŝƚŚƚŚŝƐƌƟĐůĞ ϯ͘tŚĞƌĞƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚŝƐƐŝůĞŶƚŽŶĂŶLJƐƵďũĞĐƚ͕ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJĂŶĚ^ƵƉƉůŝĞƌƌĞƚĂŝŶƚŚĞĂďŝůŝƚLJƚŽŶĞŐŽƟĂƚĞŵƵƚƵĂůůLJĂĐĐĞƉƚĂďůĞƚĞƌŵƐ. 1) YƵŽƚĞƐƚŽWĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐ͘ ^ƵƉƉůŝĞƌƐĂƌĞĞŶĐŽƵƌĂŐĞĚƚŽƉƌŽǀŝĚĞĂůůƉƌŝĐŝŶŐŝŶĨŽƌŵĂƟŽŶ ƌĞŐĂƌĚŝŶŐƚŚĞƚŽƚĂůĐŽƐƚŽĨĂĐƋƵŝƐŝƟŽŶǁŚĞŶƋƵŽƟŶŐƚŽĂWĂƌƟĐŝƉĂƟŶŐ ŶƟƚLJ͘^ƵƉƉůŝĞƌƐĂŶĚ
WĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐĂƌĞĞŶĐŽƵƌĂŐĞĚƚŽŝŶĐůƵĚĞĂůůĐŽƐƚƐƉĞĐŝĮĐĂůůLJĂƐƐŽĐŝĂƚĞĚǁŝƚŚŽƌŝŶĐůƵĚĞĚǁŝthin ƚŚĞ^ƵƉƉůŝĞƌƐƉƌŽƉŽƐĂůĂŶĚ/ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐ ǁŝƚŚŝŶƚƌĂŶƐĂĐƟŽŶĚŽĐƵŵĞŶƚƐ. 2) ^ŚŝƉƉŝŶŐ͕ĞůŝǀĞƌLJ͕ĐĐĞƉƚĂŶĐĞ͕ZĞũĞĐƟŽŶ͕ĂŶĚtĂƌƌĂŶƚLJ͘ ^ƵƉƉůŝĞƌ͛ƐƉƌŽƉŽƐĂůŵĂLJŝŶĐůƵĚĞƉƌŽƉŽƐĞĚ ƚĞƌŵƐƌĞůĂƟŶŐƚŽƐŚŝƉƉŝŶŐ͕ĚĞůŝǀĞƌLJ͕ŝŶƐƉĞĐƟŽŶ͕ĂŶĚĂĐĐĞƉƚĂŶĐĞͬƌĞũĞĐƟŽŶ and other relevant terms ŽĨƚĞŶĚĞƌĞĚ^ŽůƵƟŽŶƐ͘^ƵƉƉůŝĞƌĂŶĚWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJŵĂLJŶĞŐŽƟĂƚĞĮŶĂůƚĞƌŵƐĂƉƉƌŽƉƌŝĂƚĞĨŽƌƚŚĞ
ƐƉĞĐŝĮĐƚƌĂŶƐĂĐƟŽŶƌĞůĂƟŶŐƚŽnon-ĂƉƉƌŽƉƌŝĂƟŽŶ͕ƐŚŝƉƉŝŶŐ͕ĚĞůŝǀĞƌLJ͕ŝŶƐƉĞĐƟŽŶ͕ ĂĐĐĞƉƚĂŶĐĞͬƌĞũĞĐƟŽŶŽĨƚĞŶĚĞƌĞĚ ^ŽůƵƟŽŶƐ͕ĂŶĚǁĂƌƌĂŶƚLJĐŽǀĞƌĂŐĞĨŽƌ/ŶĐůƵĚĞĚ^ŽůƵƟŽŶƐ͘^ƵĐŚ terms may include, but are not lŝŵŝƚĞĚƚŽ͕ĐŽƐƚƐ͕ƌŝƐŬŽĨůŽƐƐ͕ƉƌŽƉĞƌƉĂĐŬĂŐŝŶŐ͕ŝŶƐƉĞĐƟŽŶƌŝŐŚƚƐĂŶĚ ƟŵĞůŝŶĞƐ͕ĂĐĐĞƉƚĂŶĐĞŽƌƌĞũĞĐƟŽŶƉƌŽĐĞĚƵƌĞƐ͕ĂŶĚƌĞŵĞĚŝĞƐĂƐŵƵƚƵĂůůLJĂŐƌĞĞĚŝŶĐůƵĚĞŶŽƟĐĞ ƌĞƋƵŝƌĞŵĞŶƚƐ͕ƌĞƉůĂĐĞŵĞŶƚ͕ƌĞƚƵƌŶŽƌĞdžĐŚĂŶŐĞƉƌŽĐĞĚƵƌĞƐ͕ĂŶĚĂƐƐŽĐŝĂƚĞĚĐŽƐƚƐ͘ ϯͿ ƉƉůŝĐĂďůĞdĂdžĞƐ͘ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌŶŽƟĨLJŝŶŐƐƵƉƉůŝĞƌŽĨŝƚƐƚĂdž-exempt status and ĨŽƌƉƌŽǀŝĚŝŶŐ^ƵƉƉůŝĞƌǁŝƚŚĂŶLJǀĂůŝĚƚĂdž-ĞdžĞŵƉƟŽŶĐĞƌƟĮĐĂƟŽŶ;ƐͿŽƌƌĞůĂƚĞĚĚŽĐƵŵĞŶƚĂƟŽŶ͘ 4) KƌĚĞƌŝŶŐWƌŽĐĞƐƐĂŶĚWĂLJŵĞŶƚ͘ ^ƵƉƉůŝĞƌ͛ƐŽƌĚĞƌŝŶŐƉƌŽĐĞƐƐĂŶĚĂĐĐĞƉƚĂďůĞĨŽƌŵƐŽĨƉĂLJŵĞŶƚĂƌĞ ŝŶĐůƵĚĞĚǁŝƚŚŝŶŝƚƐWƌŽƉŽƐĂů͘WĂƌƟĐŝƉĂƟŶŐ
ŶƟƟĞƐǁŝůůďĞƐŽůĞůLJƌĞƐƉŽŶƐŝďůĞĨŽƌƉĂLJŵĞŶƚƚŽ^ƵƉƉůŝĞƌ ĂŶĚ^ŽƵƌĐĞǁĞůůǁŝůůŚĂǀĞŶŽůŝĂďŝůŝƚLJĨŽƌĂŶLJƵŶƉĂŝĚŝŶǀŽŝĐĞŽĨĂŶLJWĂƌƟĐŝƉĂƟŶŐ ŶƟƚy.
5) dƌĂŶƐĂĐƟŽŶŽĐƵŵĞŶƚƐ͘ WĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJŵĂLJƌĞƋƵŝƌĞƚŚĞƵƐĞŽĨŝƚƐŽǁŶĨŽƌŵƐƚŽĐŽŵƉůĞƚĞ
ƚƌĂŶƐĂĐƟŽŶƐĚŝƌĞĐƚůLJǁŝƚŚ^ƵƉƉůŝĞƌƵƟůŝnjŝŶŐƚŚĞƚĞƌŵƐĞƐƚĂďůŝƐŚĞĚŝŶƚŚŝƐŐƌĞĞŵĞŶƚ͘^ƵƉƉůŝĞƌ͛Ɛ ƐƚĂŶĚĂƌĚĨŽƌŵĂŐƌĞĞŵĞŶƚƐŵĂLJďĞŽīĞƌĞĚĂƐƉĂƌƚŽĨŝƚƐWƌŽƉŽƐĂů͘^ƵƉƉůŝĞƌĂŶĚWĂƌƟĐŝƉĂƟŶŐ ŶƟƚLJ
ŵĂLJĐŽŵƉůĞƚĞĂŶĚĚŽĐƵŵĞŶƚƚƌĂŶƐĂĐƟŽŶƐƵƟůŝnjŝŶŐĂŶLJƚLJƉĞŽĨƚƌĂŶƐĂĐƟŽŶĚŽĐƵŵĞŶƚƐĂƐŵƵƚƵĂůůLJ ĂŐƌĞĞĚ͘/ŶĂŶLJƚƌĂŶƐĂĐƟŽŶĚŽĐƵŵĞŶƚĞŶƚĞƌĞĚƵƟůŝnjŝŶŐƚŚŝƐŐƌĞĞŵĞŶƚ͕^ƵƉƉůŝĞƌĂŶĚWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJŵƵƐƚŝŶĐůƵĚĞƐƉĞĐŝĮĐƌĞĨĞƌĞŶĐĞƚŽƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚďLJŶƵŵďĞƌĂŶĚƚŽWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ͛ƐƵŶŝƋƵĞ^ŽƵƌĐĞǁĞůůaccount number.
6) ĚĚŝƟŽŶĂůdĞƌŵƐĂŶĚŽŶĚŝƟŽŶƐ WĞƌŵŝƩĞĚ͘ WĂƌƟĐŝƉĂƟŶŐ ŶƟƚLJĂŶĚ^ƵƉƉůŝĞƌŵĂLJŶĞŐŽƟĂƚĞĂŶĚ
ŝŶĐůƵĚĞĂĚĚŝƟŽŶĂůƚĞƌŵƐĂŶĚĐŽŶĚŝƟŽŶƐǁŝƚŚŝŶƚƌĂŶƐĂĐƟŽŶĚŽĐƵŵĞŶƚĂƟŽŶĂƐŵƵƚƵĂůůLJĂŐƌĞĞĚ͘^ƵĐŚ terms may supplant or supersede this Master Agreement when necessary and as solely determined ďLJWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ͘^ŽƵƌĐĞǁĞůůŚĂƐĞdžƉƌĞƐƐůLJƌĞƐĞƌǀĞĚƚŚĞƌŝŐŚƚĨŽƌ^ƵƉƉůŝĞƌĂŶĚWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJƚŽĂĚĚƌĞƐƐĂŶLJŶĞĐĞƐƐĂƌLJƉƌŽǀŝƐŝŽŶƐǁŝƚŚŝŶƚƌĂŶƐĂĐƟŽŶĚŽĐƵŵĞŶƚƐŶŽƚĞdžƉƌĞƐƐůLJŝŶĐůƵĚĞĚ ǁŝƚŚŝŶƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚ͕ŝŶĐůƵĚŝŶŐďƵƚŶŽƚůŝŵŝƚĞĚƚŽƚƌĂŶƐĂĐƟŽŶĐĂŶĐĞůůĂƟŽŶ͕ĚŝƐƉƵƚĞ
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ƌĞƐŽůƵƟŽŶ͕ŐŽǀĞƌŶŝŶŐůĂǁĂŶĚǀĞŶƵĞ͕ŶŽŶ-ĂƉƉƌŽƉƌŝĂƟŽŶ͕ŝŶƐƵƌĂŶĐĞ͕ĚĞĨĞŶƐĞĂŶĚŝŶĚĞŵŶŝƚLJ͕ĨŽƌĐĞ ŵĂũĞƵƌĞ͕and other material terms as mutually agreed.
ϳͿ &ŽƌĐĞDĂũĞƵƌĞ͘ EĞŝƚŚĞƌƉĂƌƚLJƚŽƚŚŝƐŽŶƚƌĂĐƚǁŝůůďĞŚĞůĚƌĞƐƉŽŶƐŝďůĞĨŽƌĚĞůĂLJŽƌĚĞĨĂƵůƚŽƚŚĞƌ ƚŚĂŶƉĂLJŵĞŶƚŽďůŝŐĂƟŽŶƐ͕ĐĂƵƐĞĚďLJĂĐƚƐŽĨ'ŽĚŽƌŽƚŚĞƌĐŽŶĚŝƟŽŶƐƚŚĂƚĂƌĞďĞLJŽŶĚƚŚĂƚƉĂƌƚLJ͛Ɛ ƌĞĂƐŽŶĂďůĞĐŽŶƚƌŽů͘ƉĂƌƚLJĚĞĨĂƵůƟŶŐƵŶĚĞƌƚŚŝƐƉƌŽǀŝƐŝŽŶŵƵƐƚƉƌŽǀŝĚĞƚŚĞ other party prompt ǁƌŝƩĞŶŶŽƟĐĞŽĨƚŚĞĚĞĨĂƵůƚ͘
ϴͿ ^ƵďƐĞƋƵĞŶƚŐƌĞĞŵĞŶƚƐĂŶĚ^ƵƌǀŝǀĂů͘ ^ƵƉƉůŝĞƌĂŶĚWĂƌƟĐŝƉĂƟŶŐ ŶƟƚLJŵĂLJĞŶƚĞƌŝŶƚŽĂƐĞƉĂƌĂƚĞ
ĂŐƌĞĞŵĞŶƚƚŽĨĂĐŝůŝƚĂƚĞůŽŶŐ-ƚĞƌŵƉĞƌĨŽƌŵĂŶĐĞŽďůŝŐĂƟŽŶƐƵƟůŝnjŝŶŐƚŚĞƚĞƌŵƐŽĨƚŚŝƐDĂƐƚĞƌ ŐƌĞĞŵĞŶƚĂƐŵƵƚƵĂůůLJĂŐƌĞĞĚ͘^ƵĐŚĂŐƌĞĞŵĞŶƚƐŵĂLJƉƌŽǀŝĚĞĨŽƌĂƉĞƌĨŽƌŵĂŶĐĞƉĞƌŝŽĚĞdžƚĞŶĚŝŶŐ beyond thĞĨƵůůƚĞƌŵŽĨƚŚŝƐDĂƐƚĞƌŐƌĞĞŵĞŶƚ ĂƐĚĞƚĞƌŵŝŶĞĚŝŶƚŚĞĚŝƐĐƌĞƟŽŶŽĨWĂƌƟĐŝƉĂƟŶŐ
ŶƟƚLJ.
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