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GRAFFITI REMOVAL SERVICE AGREEMENT THIS AGREEMENT, made and entered into this 7`h day of February, 2011 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) Graffiti Removal Persons, under the direction of City staff, as set forth in Exhibit A, attached hereto and incorporated to this Agreement by reference. Said graffiti removal services shall comply with the City of Santa Ana Graffiti Abatement Standards Manual attached hereto as Exhibit A-1, and Contractor's proposed Method of Approach attached hereto as Exhibit A-2. Graffiti removal shall be performed every day of the week. It shall be Contractor's responsibility to schedule personnel to ensure graffiti removal is accomplished in a timely manner each day. 2. COMPENSATION a. City agrees to pay, and Contractor agrees to accept as total payment for its services, $50,000 per month, as set forth in Exhibit B, attached hereto and incorporated by reference. The total sum to be expended under this Agreement shall not exceed $600,000, annually, during the 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 March 1, 2011 and terminate on February 28, 2012, unless terminated earlier in accordance with Section 12, below. 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 1 25C-7