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GRAFFITI REMOVAL SERVICE AGREEMENT THIS AGREEMENT, made and entered into this 19`'' day of October, 2009 by and between Graffiti Protective Coatings, Inc., a California corporation (hereinafter "Contractor"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "City"). RECITALS A. The City desires to retain a Contractor having special skill and knowledge in the field of graffiti removal. B. Contractor represents that Contractor is able and willing to provide such services to the City. C. In undertaking the performance of this Agreement, Contractor represents that it is knowledgeable in its field and that any services performed by Contractor under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES Contractor shall provide graffiti removal services, with a staff of five (5) weekday Graffiti Removal Persons and one (1) weekend Graffiti Removal Person, under the direction of City staff, as set forth in Exhibit A, attached hereto and incorporated to this Agreement by reference. 2. COMPENSATION a. City agrees to pay, and Contractor agrees to accept as total payment for its services, $58,333 per month, as set forth in Contractor's Fee Schedule, attached hereto as Exhibit B. The total sum to be expended under this Agreement shall not exceed $524,997, during the initial nine-month term of this Agreement. b. Payment by City shall be made within thirty (30) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. 3. TERM This Agreement shall commence on the date first written above and terminate on June 30, 2010, unless terminated earlier in accordance with Section 12, below. The term of this Agreement may be extended upon a writing executed by the Executive Director of Public Works and the City Attorney. The contract may be extended on the written agreement of the parties, for up to four (4) additional one-year terms. Any such extension shall be subject to the same terms and conditions contained in this Agreement. Increases may be negotiated and adjusted prior to the commencement of any extended term, to be effective during such extended term. In the event sufficient budgeted funds are not available for a new 1 25B-3