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Exhibit A and incorporated in full. Contractor shall provide at least 75 beds for the City, with a guarantee of up to 100 beds if needed. All Services shall be performed at the Fullerton Shelter, owned by the Contractor and acceptable to the City, and in accordance with the provisions of this Agreement and all applicable local, state, and federal laws, rules, and regulations. b. Contractor shall ensure that any equipment purchased with funds pursuant to this Agreement, and utilized for and at the Fullerton Shelter, will be disposed of in accordance with the direction of the City. In addition, all equipment furnished to the Contractor by the City and/or purchased by the Contractor with funds pursuant to this Agreement, will be limited to use within the activities outlined by this Agreement and will remain the property of the City. Upon termination of this Agreement, Contractor will immediately return all equipment to the City or dispose of it in accordance with the direction of the City. 2. EFFECTIVENESS AND TERM OF AGREEMENT a. The Fullerton Shelter is located at 3535 W. Commonwealth Avenue in Fullerton. CA ("Site"). b. This Agreement will commence upon the date first written above and continue through September 30 2021 ("Term"), unless terminated earlier in accordance with Section 15, below. Services shall commence on or before April 20, 2021 ("Effective Date"). The term of this Agreement may be extended upon a writing executed by the City Manager and the City Attorney. C. The City shall indemnify, defend and hold harmless Contractor from any loss, claim or damage arising out of or resulting from any breach by the City of its obligations under this Agreement, including without limitation the City's failure to pay sums required hereunder. The Contractor acknowledges that City is entering into this Agreement in reliance on the Contractor's performance of its obligations under this Agreement. The Contractor shall indemnify, defend and hold harmless City from any loss, claim or damage arising out of or resulting from any breach by the Contractor of its obligations under this Agreement, including without limitation the Contractor's failure to operate the Fullerton Shelter and Services required hereunder which City will rely upon to fulfill City's obligations under this Agreement, but excluding the Contractor's failure to pay sums to be funded by the City under this Agreement. 3. COMPENSATION a. From and after the Effective Date, City shall pay Contractor the flat monthly fee of $230,000 as compensation for all Services rendered under this Agreement for up to 75 individuals during the Term as provided in Exhibit B attached hereto and incorporated herein by reference. If the daily census exceeds 75 for any days during the month, a true -up calculation can be made in arrears monthly at a per diem rate of $55 per individual in excess of 75. An audit of expenses will be conducted on a monthly basis to reconcile any over or under -payment of expenses by the City. In Page 2 of 11