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CONSULTANT AGREEMENT <br />This agreement for the performance of services ( "Agreement') is made and entered into <br />on this _ day of September, 2014 ( "Effective Date "), by and between Procure America, a <br />California Corporation which provides cost reduction consulting services to public and private <br />agencies /companies, with its principal place of business located at 31103 Rancho Viejo Road, <br />San Juan Capistrano, California 92675 (herein after referred to as "Consultant "), and the City of <br />Santa Ana, a charter city and municipal corporation organized and existing under the <br />Constitution and laws of the State of California (hereinafter "City "), with its principal place of <br />business located at 20 Civic Center Plaza, Santa Ana, CA 92701, City and Consultant may be <br />referred to herein individually as a "Party" or collectively as the "Parties" or the "Parties to this <br />Agreement." <br />RECITALS <br />A. City desires to retain a Consultant having special skill and knowledge in providing <br />cost reduction consulting services by analyzing client's policies, procedures, supplier <br />contracts, past invoices, and other pertinent information in order to provide client <br />recommendations that achieve cost savings consistent with operations; <br />B. Consultant represents that Consultant is able and willing to provide such services to <br />the City; <br />C. hi undertaking the performance of this Agreement, Consultant represents that it is <br />knowledgeable in its field and that any services performed by Consultant under this <br />Agreement will be performed in compliance with such standards as may reasonably be <br />expected from a professional consulting firm in the field, <br />D. The Parties have specified in this Agreement the terms and conditions under which <br />such services will be provided and paid for. <br />NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the <br />terms and conditions hereinafter set forth, the parties agree as follows: <br />SCOPE OF SERVICES <br />Consultant shall perform those services identified in Procure America's Statement of <br />Work as set forth in Exhibit A to this Agreement. <br />2. COMPENSATION <br />a) The review cost associated with the initiation of cost reduction services is equal to 1% <br />of the gross annual spend of the target reviewed category and thereafter <br />ProcureAmerica will share 40% of the net savings realized. This 1% fee is typically <br />paid in advance, however for the City of Santa Ana, this fee will be either waived if <br />25G -3 <br />