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1NBROA1IN1 ON POLL 190111CPAOCEE A-2014-227 1f V11L INSURANCE RPIR1 S WC CLERK 01= COON IL DATE: NOV 12 2011 CONSULTANT AGREEMENT TVs reement for the performance of services ("Agreement") is made and entered into on thisday of September, 2014 ("Effective Date"), by and between Procure America, a California Corporation which provides cost reduction consulting services to public and private agencies/companies, with its principal place of business located at 31103 Rancho Viejo Road, San Juan Capistrano, California 92675 (herein after referred to as "Consultant"), 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"), with its principal place of business located at 20 Civic Center Plaza, Santa Ana, CA 92701. City and Consultant may be referred to herein individually as a "Party" or collectively as the "Parties" or the "Parties to this Agreement." RECITALS A. City desires to retain a Consultant having special skill and knowledge in providing cost reduction consulting services by analyzing client's policies, procedures, supplier contracts, past invoices, and other pertinent information in order to provide client recommendations that achieve cost savings consistent with operations; B. Consultant represents that Consultant is able and willing to provide such services to the City; C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firm in the field. D. The Parties have specified in this Agreement the terms and conditions under which such services will be provided and paid for. 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 Consultant shall perform those services identified in Procure America's Statement of Work as set forth in Exhibit A to this Agreement. 2. COMPENSATION a) The review cost associated with the initiation of cost reduction services is equal to 1% of the gross annual spend of the target reviewed category and thereafter ProcureAmerica will share 40% of the net savings realized. This 1% fee is typically paid in advance, however for the City of Santa Ana, this fee will be either waived if