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CONTRACT 4287 Professional Services AgreementPROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF EL SEGUNDO AND INTUITIVE CONTROL SYSTEMS, LLC This AGREEMENT is entered into this 1sT day of June, 2012, by and between the CITY OF EL SEGUNDO, a municipal corporation and general law city ( "CITY ") and INTUITIVE CONTROL SYSTEMS, LLC a LIMITED LIABILITY CORPORATION ( "CONSULTANT "). 1. CONSIDERATION. A. As partial consideration, CONSULTANT agrees to perform the work listed in the SCOPE OF SERVICES, below; B. As additional consideration, CONSULTANT and CITY agree to abide by the terms and conditions contained in this Agreement; C. As additional consideration, CITY agrees to pay CONSULTANT a sum not to exceed Twenty -Four Thousand, Eight - Hundred Sixty -Seven dollars ($24,867) for CONSULTANT's services. CITY may modify this amount as set forth below. Unless otherwise specified by written amendment to this Agreement, CITY will pay this sum as specified in the attached Exhibit "A," which is incorporated by reference. 2. SCOPE OF SERVICES. A. CONSULTANT will perform services listed in the attached Exhibit "B," which is incorporated by reference. B. CONSULTANT will, in a professional manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculation, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by CITY, necessary or proper to perform and complete the work and provide the professional services required of CONSULTANT by this Agreement. 3. PERFORMANCE STANDARDS. While performing this Agreement, CONSULTANT will use the appropriate generally accepted professional standards of practice existing at the time of performance utilized by persons engaged in providing similar services. CITY will continuously monitor CONSULTANT's services. CITY will notify CONSULTANT of any deficiencies and CONSULTANT will have fifteen (15) days after such notification to cure any shortcomings to CITY's satisfaction. Costs associated with curing the deficiencies will be borne by CONSULTANT. 4. PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement, CONSULTANT must submit a detailed invoice to CITY which lists the hours worked and hourly rates for each personnel category and reimbursable costs (all as set forth in Exhibit "A ") the tasks performed, the percentage of the task completed during the billing period, the cumulative percentage completed for each task, the total cost of that work during the preceding billing month and a cumulative cash flow curve showing projected and actual expenditures versus time to date. 5. NON - APPROPRIATION OF FUNDS. Payments due and payable to CONSULTANT for current services are within the current budget and within an available, unexhausted and unencumbered appropriation of the CITY. In the event the CITY has not appropriated sufficient funds for payment of CONSULTANT services beyond the current fiscal year, this Agreement will cover only those costs incurred up to the conclusion of the current fiscal year. ADDITIONAL WORK. A. CITY's city manager ( "Manager ") may determine, at the Manager's sole discretion, that CONSULTANT must perform additional work ( "Additional Work ") to complete the Scope of Work. If Additional Work is needed, the Manager will give written authorization to CONSULTANT to perform such Additional Work. B. If CONSULTANT believes Additional Work is needed to complete the Scope of Work, CONSULTANT will provide the Manager with written notification that contains a specific description of the proposed Additional Work, reasons for such Additional Work, and a detailed proposal regarding cost. C. Payments over $100 for Additional Work must be approved by CITY's city council. All Additional Work will be subject to all other terms and provisions of this Agreement. 7. FAMILIARITY WITH WORK. A. By executing this Agreement, CONSULTANT agrees that it has: i. Carefully investigated and considered the scope of services to be performed; ii. Carefully considered how the services should be performed; and iii. Understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement. & If services involve work upon any site, CONSULTANT agrees that CONSULTANT has or will investigate the site and is or will be fully acquainted with the conditions there existing, before commencing the services hereunder. Should CONSULTANT discover any latent or unknown conditions that may materially affect the performance of the services, CONSULTANT will immediately inform CITY of such fact and will not proceed except at CONSULTANT's own risk until written instructions are received from CITY. 8. TERM. The term of this Agreement will be for three (3) years. This Agreement will automatically renew, on an annual basis, on its anniversary date unless otherwise terminated. Unless otherwise determined by written amendment between the parties, this Agreement will terminate in the following instances: A. Completion of the work specified in Exhibit "A "; B. Termination as stated in Section 15, 9. TIME FOR PERFORMANCE. A. CONSULTANT will not perform any work under this Agreement until: i. CONSULTANT furnishes proof of insurance as required under Section 23 of this Agreement; and ii. CITY gives CONSULTANT a written notice to proceed. B. Should CONSULTANT begin work on any phase in advance of receiving written authorization to proceed, any such professional services are at CONSULTANT's own risk. 10. CONSISTENCY. In interpreting this Agreement and resolving any ambiguities, the main body of this Agreement takes precedence over the attached Exhibits; this Agreement supersedes any conflicting provisions. Any inconsistency between the Exhibits will be resolved in the order in which the Exhibits appear below: A. Exhibit A: Scope of Work; B. Exhibit B: Additional Terms C. Exhibit C: Subscription T -1 11. CHANGES. CITY may order changes in the services within the general scope of this Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the contract time will be adjusted accordingly. All such changes must be authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY resulting from changes in the services will be determined in accordance with written agreement between the parties. 12. TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a Taxpayer Identification Number. 13. PERMITS AND LICENSES. CONSULTANT, at its sole expense, will obtain and maintain during the term of this Agreement, all necessary permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement. 14. WAIVER. CITY's review or acceptance of, or payment for, work product prepared by CONSULTANT under this Agreement will not be construed to operate as a waiver of any rights CITY may have under this Agreement or of any cause of action arising from CONSULTANT's performance. A waiver by CITY of any breach of any term, covenant, or condition contained in this Agreement will not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained in this Agreement, whether of the same or different character. 15. TERMINATION. A. Except as otherwise provided, CITY may terminate this Agreement at any time with or without cause. B. CONSULTANT may terminate this Agreement at any time upon thirty (30 days written notice. C. Upon receiving a termination notice, CONSULTANT will immediately cease performance under this Agreement unless otherwise provided in the termination notice. Except as otherwise provided in the termination notice, any additional work performed by CONSULTANT after receiving a termination notice will be performed at CONSULTANT" own cost; CITY will not be obligated to compensate CONSULTANT for such work. D. Should termination occur, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by CONSULTANT will, at CITY's option, become CITY's property, and CONSULTANT will receive just and equitable compensation for any work satisfactorily completed up to the effective date of notice of termination, not to exceed the total costs under Section 1(C). E. Should the Agreement be terminated pursuant to this Section, CITY may procure on its own terms services similar to those terminated. F. By executing this document, CONSULTANT waives any and all claims for damages that might otherwise arise from CITY's termination under this Section. 16. OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps, models, photographs and reports prepared by CONSULTANT under this Agreement are CITY's property. CONSULTANT may retain copies of said documents and materials as desired, but will deliver all original materials to CITY upon CITY's written notice. CITY agrees that use of CONSULTANT's completed work product, for purposes other than identified in this Agreement, or use of incomplete work product, is at CITY's own risk. 17. PUBLICATION OF DOCUMENTS. Except as necessary for performance of service under this Agreement, no copies, sketches, or graphs of materials, including graphic art work, prepared pursuant to this Agreement, will be released by CONSULTANT to any other person or public CITY without CITY's prior written approval. All press releases, including graphic display information to be published in newspapers or magazines, will be approved and distributed solely by CITY, unless otherwise provided by written agreement between the parties. 18. INDEMNIFICATION. A. CONSULTANT agrees to the following: i. Indemnification for Professional Services. CONSULTANT will save harmless and indemnify and at CITY's request reimburse defense costs for CITY and all its officers, volunteers, employees and representatives from and against any and all suits, actions, or claims, of any character whatever, brought for, or on account of, any injuries or damages sustained by any person or property resulting or arising from any negligent or wrongful act, error or omission by CONSULTANT or any of CONSULTANT's officers, agents, employees, or representatives, in the performance of this Agreement, except for such loss or damage arising from CITY's sole negligence or willful misconduct. ii, Indemnification for other Damages. CONSULTANT indemnifies and holds CITY harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising out of this Agreement, or its performance, except for such loss or damage arising from CITY's sole negligence or willful misconduct. Should CITY be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, CONSULTANT will defend CITY (at CITY's request and with counsel satisfactory to CITY) and will indemnify CITY for any judgment rendered against it or any sums paid out in settlement or otherwise. iii. Intellectual Property Infringement. Notwithstanding any provision to the contrary, CONSULTANT will, at its own expense, indemnify and defend CITY against any claim that CONSULTANT's services or work product furnished under this Agreement infringes a patent or copyright in the United States or Puerto Rico. In such event, CONSULTANT will pay all costs damages and attorney's fees that a w JA court finally awards as a result of such claim. To qualify for such defense and payment, CITY must (a) give CONSULTANT prompt written notice of any such claim; and (b) allow CONSULTANT to control, and fully cooperate with CONSULTANT in the defense and all related settlement negotiations. CITY agrees that if the use of CONSULTANT's services or work product becomes, or CONSULTANT believes is likely to become, the subject of such an intellectual property claim, CITY will permit CONSULTANT, at its option and expense, either to secure the right for CITY to continue using CONSULTANT's services and work product or to replace it with comparable services and work product. B. For purposes of this section "CITY" includes CITY's elected and appointed officials, officers, employees, and volunteers. C. It is expressly understood and agreed that the foregoing provisions will survive termination of this Agreement. D. The requirements as to the types and limits of insurance coverage to be maintained by CONSULTANT as required by Section 22, and any approval of said insurance by CITY, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONSULTANT pursuant to this Agreement, including, without limitation, to the provisions concerning indemnification. 19. ASSIGNABILITY. This Agreement is for CONSULTANT's professional services. CONSULTANT's attempts to assign the benefits or burdens of this Agreement without CITY's written approval are prohibited and will be null and void. 20. INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that CONSULTANT will act as an independent contractor and will have control of all work and the manner in which is it performed. CONSULTANT will be free to contract for similar service to be performed for other employers while under contract with CITY. CONSULTANT is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees. Any provision in this Agreement that may appear to give CITY the right to direct CONSULTANT as to the details of doing the work or to exercise a measure of control over the work means that CONSULTANT will follow the direction of the CITY as to end results of the work only. 21. AUDIT OF RECORDS. CONSULTANT will maintain full and accurate records with respect to all services and matters covered under this Agreement. CITY will have free access at all reasonable times to such records, and the right to examine and audit the same and to make transcript therefrom, and to inspect all program data, documents, proceedings and activities. CONSULTANT will retain such financial and program service records for at least three (3) years after termination or final payment under this Agreement. 22. INSURANCE. A. Before commencing performance under this Agreement, and at all other times this Agreement is effective, CONSULTANT will procure and maintain the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below: Type of Insurance Limits Commercial general liability: $1,000,000 Professional Liability $1,000,000 Business automobile liability $1,000,000 Workers compensation Statutory requirement B. Commercial general liability insurance will meet or exceed the requirements of ISO -CGL Form No. CG 00 01 1185 or 88. The amount of insurance set forth above will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage. Liability policies will be endorsed to name CITY, its officials, and employees as "additional insureds" under said insurance coverage and to state that such insurance will be deemed "primary" such that any other insurance that may be carried by CITY will be excess thereto. Such insurance will be on an "occurrence," not a "claims made," basis and will not be cancelable or subject to reduction except upon thirty (30) days prior written notice to CITY. C. Professional liability coverage will be on an "occurrence basis" if such coverage is available, or on a "claims made" basis if not available. When coverage is provided on a "claims made basis," CONSULTANT will continue to renew the insurance for a period of three (3) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONSULTANT for all claims made by CITY arising out of any errors or omissions of CONSULTANT, or its officers, employees or agents during the time this Agreement was in effect. D. Automobile coverage will be written on ISO Business Auto Coverage Form CA 00 0106 92, including symbol 1 (Any Auto). E. CONSULTANT will furnish to CITY duly authenticated Certificates of Insurance evidencing maintenance of the insurance required under this Agreement and such other evidence of insurance or copies of policies as may be reasonably required by CITY from time to time. Insurance must be placed with insurers with a current A.M. Best Company Rating equivalent to at least a Rating of "A:VII." F, Should CONSULTANT, for any reason, fail to obtain and maintain the insurance required by this Agreement, CITY may obtain such coverage at CONSULTANT's expense and deduct the cost of such insurance from payments due to CONSULTANT under this Agreement or terminate pursuant to Section 15. 23. USE OF SUBCONTRACTORS. CONSULTANT must obtain CITY's prior written approval to use any consultants while performing any portion of this Agreement. Such approval must approve of the proposed consultant and the terms of compensation. The consultants listed in Exhibit `B" are hereby approved. 24. INCIDENTAL TASKS. CONSULTANT will meet with CITY monthly to provide the status on the project, which will include a schedule update and a short narrative description of progress during the past month for each major task, a description of the work remaining and a description of the work to be done before the next schedule update. 25. NOTICES. All communications to either party by the other party will be deemed made when received by such parry at its respective name and address as follows: If to CONSULTANT: All Traffic Solutions 3100 Research Drive, State College, PA 16801 Attention: Jody Rowe, Accounting Manager If to CITY: City of El Segundo 348 Main Street El Segundo, CA Attention: Captain, Administrative Services Bureau, ESPD Any such written communications by mail will be conclusively deemed to have been received by the addressee upon deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph. 26. CONFLICT OF INTEREST. CONSULTANT will comply with all conflict of interest laws and regulations including, without limitation, CITY's conflict of interest regulations. 27. SOLICITATION. CONSULTANT maintains and warrants that it has not employed nor retained any company or person, other than CONSULTANT's bona fide employee, to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not paid nor has it agreed to pay any company or person, other than CONSULTANT's bona fide employee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Should CONSULTANT breach or violate this warranty, CITY may rescind this Agreement without liability. 28. THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of any 4287 . ,I ,,_ other party. There will be no incidental or other beneficiaries of any of CONSULTANT's or CITY's obligations under this Agreement. 29. INTERPRETATION. This Agreement was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Los Angeles County. 30. COMPLIANCE WITH LAW. CONSULTANT agrees to comply with all federal, state, and local laws applicable to this Agreement. 31. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire understanding of the parties. There are no other understandings, terms or other agreements expressed or implied, oral or written. There are three (3) Attachments to this Agreement. This Agreement will bind and inure to the benefit of the parties to this Agreement and any subsequent successors and assigns. 32. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party. 33. SEVERABILITY. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect. 34. AUTHORITY /MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment. CITY's executive manager, or designee, may execute any such amendment on behalf of CITY. 35. ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that this Agreement, agreements ancillary to this Agreement, and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by facsimile transmission. Such facsimile signature will be treated in all respects as having the same effect as an original signature. 36. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of reference only and will not affect the interpretation of this Agreement. 37. TIME IS OF ESSENCE. Time is of the essence for each and every provision of this Agreement. 38. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire, flood, explosion, acts of terrorism, war, embargo, government action, civil or military authority, the 1 natural elements, or other similar causes beyond the Parties' reasonable control, then the Agreement will immediately terminate without obligation of either party to the other. 39. STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT represents that it has demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the Agreement in a manner satisfactory to CITY. CONSULTANT represents that its financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, experience in dealing with private consultants, and experience in dealing with public agencies all suggest that CONSULTANT is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public CITY. [Signatures on next page] IN WITNESS WHEREOF' the parties hereto have executed this contract the day and year first hercinabove written. ary OF EL 8 -G U N DO Ule G P9 re 'i City atiager ATTEST: Tr- my er,, (" y Clerk ,raxpayer ID No 9,Cl EXHIBIT A — SCOPE OF WORK 4287 a, r At BILL TO: SHIP TO: City of El Segundo City of El Segundo Accounts Payable 348 Main Street 350 Main Street El Segundo, CA 90245 -3813 El Segundo, CA 90245 -3813 Attn: Carlos Mendoza PAYMENT TERMS: CUSTOMER: 202043 CONTACT: 310 - 524 -2339 Net 30 ITEM NO: DESCRIPTION: QTY: EACH: EXT. PRICE: 4000561 Shield 12 Speed Display; base unit w/ mounting 1 $3,150.00 $3,150.00 bracket 4000647 App, Traffic Suite (12mo); Equip Mgmt, 1 $1,500.00 $1,500.00 Reporting, Image Mgmt, Alerts, Mapping and PremierCare 4000760 All Options Activation: Bluetooth, Traffic Data, 1 $3,000.00 $3,000.00 Violator Alert, Pictures, Linking (as applic) 4000719 Options CREDIT; requires SmartApp Traffic Suite 1 ($3,000.00) ($3,000.00) 4000743 LFP Power kit, 10Ah battery (2), internal power 1 $750.00 $750.00 controller, charger w /connector 4000561 Shield 12 Speed Display; base unit w/ mounting 2 $3,150.00 $6,300.00 bracket 4000772 App, Traffic Suite (24mo); Equip Mgmt, 2 $3,000.00 $6,000.00 Reporting, Image Mgmt, Alerts, Mapping and PremierCare 4000758 Trade -in CREDIT: ATS speed display 2 ($3,150.00) ($6,300.00) 4000760 All Options Activation: Bluetooth, Traffic Data, 2 $3,000.00 $6,000.00 Violator Alert, Pictures, Linking (as applic) 4000719 Options CREDIT; requires SmartApp Traffic Suite 2 ($3,000.00) ($6,000.00) 4000745 SpeedAlert 24 Radar Message Sign (RMS); base 1 $9,000.00 $9,000.00 unit (select mount separately) 4000772 App, Traffic Suite (24mo); Equip Mgmt, 1 $3,000.00 $3,000.00 Reporting, Image Mgmt, Alerts, Mapping and PremierCare 4287 - 0.i 4000761 Trade -in CREDIT: ATS radar message display 1 ($7,000.00) ($7,000.00) 4000760 All Options Activation: Bluetooth, Traffic Data, 1 $3,000.00 $3,000.00 Violator Alert, Pictures, Linking (as applic) 4000719 Options CREDIT; requires SmartApp Traffic Suite 1 ($3,000.00) ($3,000.00) 4060072 Shipping Charge, SA/iA 24 3 -way, flat -rate 1 $0.00 $0.00 4000641 Shipping 1 $0.00 $0.00 4000603 AC supply, 6A, 12VDC out, 120VAC 50/60 Hz in, 1 $465.40 $465.40 NEMA 4 (Sh12,Sh15,SA18JA18) 4000724 Retrofit upgrade for Re- certified SS12 Speed 2 $0.00 $0.00 Display to leverage web platform; hdwr only 4000772 App, Traffic Suite (24mo); Equip Mgmt, 2 $3,000.00 $6,000.00 Reporting, Image Mgmt, Alerts, Mapping and PremierCare 4000760 All Options Activation: Bluetooth, Traffic Data, 2 $3,000.00 $6,000.00 Violator Alert, Pictures, Linking (as applic) 4000719 Options CREDIT; requires SmartApp Traffic Suite 2 ($3,000.00) ($6,000.00) 4000705 Sales Tax 1 $2,000.73 $2,000.73 Special Notes: SALES $24,866.13 AMOUNT: SHIPPING: TOTAL: $24,866.13 Duration! This quote is good for 120 days frown date of Issue. Shipping Motes: Unless ahippi'ng charges are specifically Indicated, prices are FOB factory. Shipping charges may apply Taxas; Taxes are not Included In quota. please provide a tax exempt certificate or sales tax will be applied. Warranty: Unless otherwise indicated, all products have a one year warranty from date of sale. Warranty extensions are a component of some applications that are available at time of purchase. A Finance Charge of 1.5% per month will be applied to overdue balances.. Service Line Billing Options: Only applies to extended subscription payments when required (select one) Device # Item # Description Term (mo) ❑ Annual ❑ Qtrly ❑ Monthly 5 4000772 App, Traffic Suite (24mo); Equip 24.000 7500.00 2025.00 750.00 Mgmt, Reporting, Image Mgmt, Alerts, Mapping and PremierCare 1 4000647 App, Traffic Suite (12mo); Equip 12.000 1500.00 405.00 150.00 Mgmt, Reporting, Image Mgmt, Alerts, Mapping and PremierCare 1. Definitions. ���FA "Customer Data" shall mean all information and images supplied by Customer or collected by Customer using any Device and entered, stored or accessed by Customer on the ATS server. "Device" shall mean any of the following equipment that is compatible with the ATS System, including, without limitation, speed displays, message signs or video products, whether that equipment was manufactured by or purchased from ATS or a third party. "Governmental Body" shall mean any governmental body or agency in which Customer is in the jurisdiction of such body or agency. "Product" shall mean any ATS or third party product or Device that is compatible with the ATS System. "Services" shall mean providing Customer with the ability to communicate with the Device(s) and granting Customer access to remotely program, manage, view, a accumulate and upload Customer Data from the Device using a cellular service, or any other means, through web -based applications and platform using the ATS web portal, server and System. "Start of Service" shall mean the date defined of acceptance of this Agreement by Customer, or activation and access to the first Device through the ATS server, whichever is first. "Subscription Agreement" shall mean the document containing a listing of the subscription fees charged on a per Device basis for providing specified levels of Services and the accumulation of Customer Data on the System, which may be amended from time to time by ATS upon providing Customer with thirty (30) days prior written notice during which thirty days Customer shall have the option of terminating this Agreement. "Subscription Period" shall mean the specified period for the level of Services chosen and paid in full by Customer in advance from the Start of Service set forth in the Subscription Agreement. ATS shall have the sole discretion and authority to set, amend and terminate levels of access and Subscription Periods from time to time without Customer's consent but upon providing Customer with prior written notice "System" shall mean the Product, Services, Devices, web portal, server, software, documentation and cellular services used by ATS and /or Customer to collect, store, manage, analyze and access Customer Data. . "Third Party Provider" shall mean any person or entity other than ATS which provides any portion of the System to ATS. "Underlying Carrier" shall mean the communications carrier, which may be providing international, interstate, intrastate communications services to ATS, which in turn provides the same to Customer. 2. Access and Ownership. All Customer Data entered, stored and accessed on the ATS server shall be owned by Customer. 3. System. ATS agrees to provide Customer access to the ATS server through the ATS web portal via one or more user access accounts delivered by ATS to Customer for its limited access to the Customer Data during the Subscription Period pursuant to the level of Services chosen and paid for by Customer. The remote communication to the Devices is via any cellular network 4 service provider chosen by ATS from time to time. It is Customer's responsibility to ensure the Device and Product are used where adequate cellular signal is present. ATS agrees (a) that the System will be operational at all times (seven (7) days a week and twenty -four (24) hours per day), except in the case of technical problems, and (b) to use reasonable efforts to repair the System should it experience technical problems. Customer shall be solely responsible for the Device and its operation, maintenance, repair and replacement. ATS shall not be responsible for any portion of the System which is dependent in any manner upon the services or product of a Third Party Provider, although ATS will make reasonable efforts to facilitate repairs by that Third Party Provider in the event of technical problems. ATS shall only be responsible for providing Services subject to applicable laws and governmental regulations and subject to the limitations of the System. 4. Cellular Service. ATS shall not be responsible for the quality of or lack of cellular service provided by any Underlying Carrier. 5. System and Software Updates. Customer hereby acknowledges and agrees that as algorithms and techniques are developed by ATS, ATS may update software and that viewing the same Customer Data across different versions of software may result in different analyses. 6. Customer's Proprietary Information. It is the sole responsibility of the Customer to take security precautions in protecting its proprietary information. 7. Indemnification for Licensure and Approvals. Customer shall be responsible for obtaining such regulatory authority licenses and approval as may be necessary for the provision of the access to the ATS System, Product, Services. Customer agrees to indemnify and hold ATS harmless against any and all claims or demands made on ATS or Customer as a result of Customer's failure to comply regardless of whether such failure was the result of negligence, gross negligence, willful misconduct, or fraud. 8. Integrity of System. Customer agrees that it shall not in any manner permit any person, party or entity to have access to the ATS Products or Services, except as specifically permitted under this Agreement between ATS and Customer. 9. Taxes or Assessments. Customer shall be responsible for payment of all applicable taxes or assessments due to local, state, federal, governmental, and international taxing or regulatory authorities, including income, sales, use, value added tax, other excise taxes or assessments relating to the Products or Services. Customer agrees to indemnify and hold ATS harmless against any and all claims or demands made upon ATS or Customer as a result of Customer's failure to properly pay any such taxes or assessments regardless of whether such failure was the result of negligence, gross negligence, willful misconduct, or fraud. 12. Limitation of Liability. EXCEPT AS REQUIRED BY LAW, ATS AND ITS DIRECTORS, LICENSORS, CONTRIBUTORS AND AGENTS (COLLECTIVELY, THE "ATS GROUP ") WILL NOT BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES ARISING OUT OF OR IN ANY WAY RELATING TO THIS AGREEMENT OR THE USE OF OR INABILITY TO USE THE SERVICES, INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS OF GOODWILL, WORK STOPPAGE, LOST PROFITS, LOSS OF DATA, AND COMPUTER FAILURE OR MALFUNCTION, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND REGARDLESS OF THE THEORY (CONTRACT, TORT OR OTHERWISE) UPON WHICH SUCH CLAIM IS BASED. ® b 13. Computer System Failures And Data Loss. Each party to this Agreement will assume the risk of loss associated with loss of data, software or computer system failure attributable to viruses, worms or other similar components which may be downloaded during Online Services. This provision shall not apply to intentional acts which are designed to lead to system failure. Under no circumstances shall ATS be responsible for any indirect, incidental or consequential damages. 14. Liability to Others. Without limitation, this Agreement is between Customer and ATS only, and other customers who may have received Customer Data shall have no rights or remedies against ATS under this Agreement. The indemnification provisions of the Agreement shall apply to all claims against ATS by other ATS customers receiving Customer Data. 15. Default. Customer shall be in default under this Agreement, and ATS shall have the right to immediately terminate this Agreement, to terminate Customer's access and use of any Product, the Services, the Devices, the System, and any other ATS product or device and to disable and rendered useless to Customer the Product, the Services, the Devices, the System, and any other ATS product or device, and all without notice and without refund of any fee paid hereunder, however, all provisions of this Agreement except the license for access to the ATS System, Product, Services and Device will survive termination and continue in effect, upon the occurrence of any of the following: 15.1. Customer fails to make payments due pursuant to this Agreement and the Subscription Agreement; 15.2. Customer fails to pay when due in full any and all amounts owed by Customer to ATS under any other agreement or for the purchase of any other ATS product, device or service, this shall include any reclamation of payment for non - sufficient funds or stop payment orders; 15.4 Any violations of applicable laws and regulations, 15.5 Customer providing the Services or access to any third parties without the prior written consent of ATS; 15.6 Any representation or warranty made by Customer herein is materially false or misleading when delivered; 15.7. Customer makes a general assignment to or for the benefit of creditors or suspends all or substantially all of its business operations; 15.8. Bankruptcy, reorganization, involuntary liquidation, receivership, or other similar proceedings are instituted against Customer and the same is not fully discharged within thirty (30) days; or 15.9 Failure to provide proof of the undersigned's authority to bind the Customer in contract prior to access to the ATS System, Product, Services or Device; 15.10. After notification to Customer of a breach of any provision of this Agreement or the Subscription Agreement via facsimile and /or electronic mail from ATS, Customer fails to immediately remedy such breach. However, nothing contained in this subsection shall require ATS to provide Customer with any notice of any breach or default. 16. Remedy Not Exclusive. Notwithstanding any termination of this Agreement, the rights required or obligations incurred by the parties prior to termination shall not be affected and each party shall remain liable, unless waived or indemnified, for any and all damages sustained by the other party by reason of such termination or by reason of a party's default or breach and each party shall have and retain unimpaired all pertinent rights and remedies, whether at law or in equity. All rights and remedies under this Agreement are cumulative, not exclusive and shall be in addition to all rights and remedies available to either party at law or in equity. I 24. DISCLAIMER OF WARRANTY. THE PRODUCTS AND SERVICES ARE PROVIDED "AS IS" WITH ALL FAULTS. TO THE EXTENT PERMITTED BY LAW, ATS AND ITS LICENSORS HEREBY DISCLAIM ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES THAT THE PRODUCT AND /OR THE SERVICES ARE FREE OF DEFECTS, MERCHANTABLE, FIT FOR A PARTICULAR PURPOSE AND NON - INFRINGING. CUSTOMER BEARS THE ENTIRE RISK AS TO SELECTING THE PRODUCT AND THE SERVICES FOR CUSTOMER'S PURPOSES AND AS TO THE QUALITY AND PERFORMANCE OF THE PRODUCT AND THE SERVICES. THIS LIMITATION WILL APPLY NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY REMEDY. ATS MAKES NO WARRANTY, EXPRESSED OR IMPLIED WITH RESPECT TO THE TRANSMISSION OF SERVICES PROVIDED HEREUNDER AND EXPRESSLY DISCLAIMS ANY WARRANTY OR MERCHANTABILITY, DESCRIPTION OR FITNESS FOR ANY PARTICULAR PURPOSE OR FUNCTION. 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