STATE OF MICHIGAN

CENTRAL PROCUREMENT SERVICES

Department of Technology, Management, and Budget

525 W. ALLEGAN ST., LANSING, MICHIGAN 48913

P.O. BOX 30026 LANSING, MICHIGAN 48909

CONTRACT CHANGE NOTICE

Change Notice Number 9 to 071B2200116Contract Number hamptonk@Michigan.gov

Kristen Hampton

Valerie Hiltz lamissa_jensen@identisys.com

Lamissa Jensen

Eden Prairie, MN 55344

IDENTISYS INCORPORATED

CV0050478

952-294-1206

7630 Commerce Way

(517) 249-0459

STA

TE

P ro g ra m

M a n a g e r

C o n tra ct

A d m in istra to r

C O

N T R A C T O

R

517-636-7747

DTMB

hiltzv@michigan.gov

$3,418,971.49

January 17, 2012 January 16, 2022

CARD ISSUANCE SYSTEM

January 16, 2015

INITIAL AVAILABLE OPTIONS EXPIRATION DATE

BEFORE

2 - 1 Year

PAYMENT TERMS DELIVERY TIMEFRAME

1% 15 DAYS

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

☐ P-Card ☐ PRC ☐ Other ☐ Yes ☒ No

MINIMUM DELIVERY REQUIREMENTS

DESCRIPTION OF CHANGE NOTICE

OPTION LENGTH OF OPTION EXTENSION LENGTH OF EXTENSION REVISED EXP. DATE

☐ ☒ January 16, 2030

CURRENT VALUE VALUE OF CHANGE NOTICE ESTIMATED AGGREGATE CONTRACT VALUE

N/A

$2,462,000.00 $5,880,971.49

Effective December 10, 2021 this contract is being extended via MPPM Chapter 5.7.6. Useful Life provision. The new contract expiration date is January 16, 2030.

$2,462,000.00 in funding is being added. The Contract Administrator is changed to Valerie Hiltz, hiltzv@michigan.gov, 517-249-0459. Schedule B pricing is being revised as attached.

All other terms, conditions and specifications remain the same. Per Contractor and agency agreement, DTMB Central Procurement Services approval and the approval of the State Administrative Board given on December 6, 2021.

INITIAL EXPIRATION DATEINITIAL EFFECTIVE DATE

As Directed

DESCRIPTION

CONTRACT SUMMARY

DTMB

Schedule B- Pricing Revised via CN # 9, Effective December 10, 2021

Contract # 071B2200116 11

Description of Consumable/Supplies Part Number Price per unit

1/1/2022 - 12/31/ 2022

Unit of Measure

Quantity per Unit of Measure

Full Color Ribbon Sets (YMCK) 568116-001 2,035.00$ EA 1 Duraguard Laminate, 1.0 mil, Holographic, full card 559467-005 550.00$ Roll 1 Stickers, card affixing, MXD, Double Sided Adhesive 558734-301 120.00$ Box 8 Blue Cleaning Tape 559791-501 43.75$ EA 1 Cleaning Roller (4 needed) 514277-001 43.75$ EA 1 Black Monochrome Graphics Ribbon 559789-501 63.50$ EA 1 Printhead, Graphics for MX 564265-008 1,025.00$ EA 1 HP Printer Image Unit CF325XC 811394-281 265.00$ EA 1 Custom Card-CR80 .030 mil preprinted UV Cards 1401 0.11$ EA 1 Wetter Fluid 807884-261 131.00$ EA 1 DX3100- HP Toner Cartridge 811394-281 265.00$ EA 1

Consumables/Supplies Pricing is firm and fixed on an annual basis.

Pricing may be evaluated annually. Any price increases for this category will be capped at 3% aggregate based on the previous 12 month usage.

Description of Service Annual Cost Hardware- MC6000 with Mxi 66,642.00$ Software- Controller Software $ 5,485.00

Pricing may be evaluated annually. Any price increases for this category shall be capped at 2% per line item, per year.

State of Michigan

SCHEDULE B- PRICING

CONSUMABLES/ SUPPLIES

Service Pricing is firm and fixed on an annual basis.

Effective Dates 1/23/2022 - 1/22/2023 2/2/2022 - 1/31/2023

SERVICE CONTRACTS

Department of Technology, Management, and Budget

525 W. ALLEGAN ST., LANSING, MICHIGAN 48913

P.O. BOX 30026 LANSING, MICHIGAN 48909

CONTRACT CHANGE NOTICE

Change Notice Number 8 to 071B2200116Contract Number hamptonk@Michigan.gov

Kristen Hampton

Kathleen McFarland lamissa_jensen@identisys.com

Lamissa Jensen

Eden Prairie, MN 55344

IDENTISYS INCORPORATED

CV0050478

952-294-1206

7630 Commerce Way

(517)

STA

TE

P ro g n a g e r

C o n tra ct

A d m in istra to r

C O

N T R A C T O

R

517-636-7747

DTMB

mcfarlandk1@michigan.gov

$3,218,971.49

January 17, 2012 January 16, 2022

CARD ISSUANCE SYSTEM

January 16, 2015

INITIAL AVAILABLE OPTIONS EXPIRATION DATE

BEFORE

2 - 1 Year

PAYMENT TERMS DELIVERY TIMEFRAME

1% 15 DAYS

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

☐ P-Card ☐ PRC ☐ Other ☐ Yes ☒ No

MINIMUM DELIVERY REQUIREMENTS

DESCRIPTION OF CHANGE NOTICE

OPTION LENGTH OF OPTION EXTENSION LENGTH OF EXTENSION REVISED EXP. DATE

☐ ☐ N/A

CURRENT VALUE VALUE OF CHANGE NOTICE ESTIMATED AGGREGATE CONTRACT VALUE

N/A

$200,000.00 $3,418,971.49

Effective October 26, 2021 this contract's funding is being increased by $200,000.00.

All other terms, conditions, specifications and pricing remain the same per Contractor and Agency agreement, and DTMB Central Procurement Services approval.

INITIAL EXPIRATION DATEINITIAL EFFECTIVE DATE

As directed

DESCRIPTION

DTMB

Department of Technology, Management, and Budget

525 W. ALLEGAN ST., LANSING, MICHIGAN 48913

P.O. BOX 30026 LANSING, MICHIGAN 48909

CONTRACT CHANGE NOTICE

Change Notice Number 7 to 071B2200116Contract Number hamptonk@Michigan.gov

Kristen Hampton

Sue Cieciwa lamissa_jensen@identisys.com

Lamissa Jensen

Eden Prairie, MN 55344

IDENTISYS INCORPORATED

CV0050478

952-294-1206

7630 Commerce Way

(517) 249-0458 S T A T E

P ro g n a g e r

C o n tra ct

A d m in istra to r

C O

N T R A C T O

R

DTMB

517-636-7747

DTMB

cieciwas@michigan.gov

$3,218,971.49

January 17, 2012 January 16, 2022

CARD ISSUANCE SYSTEM - DEPARTMENT OF TECHNOLOGY, MANAGEMENT AND BUDGET

January 16, 2015

INITIAL AVAILABLE OPTIONS EXPIRATION DATE

BEFORE

2 - 1 Year

PAYMENT TERMS DELIVERY TIMEFRAME

1% 15 DAYS

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

☐ P-Card ☐ PRC ☐ Other ☐ Yes ☒ No

MINIMUM DELIVERY REQUIREMENTS

DESCRIPTION OF CHANGE NOTICE

OPTION LENGTH OF OPTION EXTENSION LENGTH OF EXTENSION REVISED EXP. DATE

☐ ☐ January 16, 2022

CURRENT VALUE VALUE OF CHANGE NOTICE ESTIMATED AGGREGATE CONTRACT VALUE

N/A

$0.00 $3,218,971.49

Effective October 7, 2019, this Contract is amended as follows:

Window 10 Upgrade Pricing for MX6000, installed by Contractor:

RAID Option Total for All Items: $17,490.00

RAID1 Controller HW MS Win 10 Upgrade for systems w non-SSD hard drives $15,995.00 (includes full Controller HW, USB keyboard, mouse, two SSD hard drives; RAID array is preconfigured; order CIS v10 separately) Current Version of MX Series Controller Software – Windows 10 – SMA Customers only $0.00 Datacard Vision Software for Windows 10 includes Vision Software only $0.00 Installation – Per Day $1,495.00

All other terms, conditions, specifications and pricing remain the same. Per Contractor and Agency agreement, and DTMB, Central Procurement Services approval.

INITIAL EXPIRATION DATEINITIAL EFFECTIVE DATE

As Directed

DESCRIPTION

Department of Technology, Management, and Budget

525 W. ALLEGAN ST., LANSING, MICHIGAN 48913

P.O. BOX 30026 LANSING, MICHIGAN 48909

CONTRACT CHANGE NOTICE

Change Notice Number 6 to

Contract Number 071B2200116

CARD ISSUANCE SYSTEM - DEPARTMENT OF TECHNOLOGY, MANAGEMENT AND BUDGET

INITIAL EFFECTIVE DATE INITIAL EXPIRATION DATE INITIAL AVAILABLE OPTIONS EXPIRATION DATE

BEFORE

January 17, 2012 January 16, 2015 2 - 1 Year January 16, 2022

PAYMENT TERMS DELIVERY TIMEFRAME

1% 15 Days As Directed

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

☐ P-Card ☐ PRC ☐ Other ☐ Yes ☒ No

MINIMUM DELIVERY REQUIREMENTS

N/A

DESCRIPTION OF CHANGE NOTICE

OPTION LENGTH OF OPTION EXTENSION LENGTH OF EXTENSION REVISED EXP. DATE

☐ ☐ January 16, 2022

CURRENT VALUE VALUE OF CHANGE NOTICE ESTIMATED AGGREGATE CONTRACT VALUE

$3,218,971.49 $0.00 $3,218,971.49

DESCRIPTION

Effective July 2, 2019, this Contract is amended as follows:

1. The State agency under this Contract has been changed from the Department of Licensing and Regulatory Affairs (LARA) to the Department of Technology, Management and Budget (DTMB).

2. Printer upgrade (1) HP M806 Printer with Connection Kit $6,995.00

3. (1) MC6000 Controller Software $7,595.00

4. On-Site Installation Services $995.00

5. Software Maintenance Agreement - 1 Year $4,000.00 effective August 1, 2019 for technical phone support and includes updates as made available by the manufacturer if applicable.

6. The location of the Data Card MX6000 Card Issuance System, Serial Number MX61026 will be changed on July 10, 2019 to:

DTMB Print & Mail Management 7461 Crowner Drive Lansing, MI 48913

7. Please note the Program Manager has been changed to Kristen Hampton.

8. Standard Contract Terms, Section 2.23.4. Nondiscrimination is hereby changed to:

IDENTISYS INCORPORATED

7630 Commerce Way

Eden Prairie, MN 55344

Lamissa Jensen

952-294-1206 lamissa_jensen@identisys.com

CV0050478

P ro g ram an ag er

Kristen Hampton DTMB

517-636-7747 hamptonk@michigan.gov C o n tract

A d m in istrato r Sue Cieciwa DTMB

(517) 249-0458 cieciwas@michigan.gov

STA

TE

C O

N

TR

A C

TO

R mailto:lamissa_jensen@identisys.com mailto:hamptonk@michigan.gov mailto:cieciwas@michigan.gov

2.23.4 Nondiscrimination. Under the Elliott-Larsen Civil Rights Act, 1976 PA 453, MCL 37.2101, et seq., the

Persons with Disabilities Civil Rights Act, 1976 PA 220, MCL 37.1101, et seq., and Executive Directive 2019-09. Contractor and its subcontractors agree not to discriminate against an employee or applicant for employment with respect to hire, tenure, terms, conditions, or privileges of employment, or a matter directly or indirectly related to employment, because of race, color, religion, national origin, age, sex (as defined in Executive Directive 2019-09), height, weight, marital status, partisan considerations, any mental or physical disability, or genetic information that is unrelated to the person’s ability to perform the duties of a particular job or position. Breach of this covenant is a material breach of this Contract.

All other terms, conditions, specifications and pricing remain the same. Per Contractor and Agency agreement, and DTMB, Central Procurement Services approval.

https://www.michigan.gov/whitmer/0,9309,7-387-90499_90704-486781--,00.html https://www.michigan.gov/whitmer/0,9309,7-387-90499_90704-486781--,00.html

Revised 5/4/2016

CONTRACT CHANGE NOTICE

Change Notice Number 5 .

C O

N

TR

A C

R

IDENTISYS INCORPORATED

ST

A

T E Pr og an ag er

Desmond Mitchell LARA

7630 Commerce Way (517) 373-4992

Eden Prairie, MN 55344 mitchelld6@michigan.gov

Lamissa Jensen

C on tra ct

Ad in is tra to r Sue Cieciwa DTMB

(952) 294-1206 (517) 284-7007

Lamissa_jensen@identisys.com cieciwas@michigan.gov

*******8567

DESCRIPTION: Effective November 15, 2016 the following changes are made to Article 2 – Terms and Conditions:

Section 2.1.2 Options to Renew, the first sentence is changed to read:

This Contract may be renewed for up to seven additional one year periods.

Section 2.15.1 General Indemnification is changed to read:

To the extent permitted by law, the Contractor must indemnify, defend, and hold the State harmless from liability, including all claims and losses, and all related costs and expenses (including reasonable attorneys’ fees and costs of investigation, litigation, settlement, judgments, interest and penalties), accruing or resulting to any person, firm, or corporation that may be injured or damaged by the Contractor in the performance of this Contract and that are attributable to the negligence or tortious acts of the Contractor, any of its subcontractors.

Section 2.15.5 Continuing Obligation is removed from this Contract.

ENTERPRISE PROCUREMENT

Department of Technology, Management, and Budget

525 W. ALLEGAN ST., LANSING, MICHIGAN 48913

P.O. BOX 30026 LANSING, MICHIGAN 48909

CONTRACT SUMMARY

DESCRIPTION: Card Issuance System – Department of Licensing and Regulatory Affairs

INITIAL EFFECTIVE DATE INITIAL EXPIRATION DATE

INITIAL AVAILABLE

OPTIONS

EXPIRATION DATE BEFORE

CHANGE(S) NOTED BELOW

January 17, 2012 January 16, 2015 2 - 1 Year January 16, 2017

PAYMENT TERMS DELIVERY TIMEFRAME

1% 15 Days As Directed

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

☐ P-card ☐ Direct Voucher (DV) ☐ Other ☐ Yes ☒ No

MINIMUM DELIVERY REQUIREMENTS

N/A

DESCRIPTION OF CHANGE NOTICE

OPTION LENGTH OF OPTION EXTENSION LENGTH OF

EXTENSION REVISED EXP. DATE

☒ Seven – 1 Year ☐ January 16, 2022

CURRENT VALUE VALUE OF CHANGE NOTICE ESTIMATED AGGREGATE CONTRACT VALUE

$1,577,371.49 $ 1,641,600.00 $3,218,971.49

Revised 4/7/2016

Section 2.15.7 Limitation of Liability is changed to read:

Neither the Contractor nor the State is liable to each other, regardless of the form of action, for consequential, incidental, indirect, or special damages, and neither party’s liability to each other, regardless of the form of action, shall exceed the budget ceiling of this Contract. This limitation of liability does not apply to claims for infringement of United States patent, copyright, trademark or trade secrets; to claims for personal injury or damage to property caused by the gross negligence or willful misconduct of the Contractor; to claims covered by other specific provisions of this Contract calling for liquidated damages; or to court costs or attorneys’ fees awarded by a court in addition to damages after litigation based on this Contract.

This Contract is exercising the remaining five option years, three through seven and is increased by $1,641,600.00.

The revised Contract expiration date is January 16, 2022.

Attachment A – Pricing is revised, per attached.

Maintenance / Support is added for Years 6-10 as specified in Attachment B – Maintenance and Support for MX6000 Card Issuance System, per attached.

The Contractor contact is changed to: Lamissa Jensen, lamissa_jensen@identisys.com, (952) 294-1206.

All other terms, conditions, specifications, and pricing remain the same. Per contractor and agency agreement, DTMB Procurement approval, and State Administrative Board approval on November 15, 2016.

CHANGE NOTICE NO. 5 TO CONTRACT NO. 071B2200116

FOR THE CONTRACTOR:

IDENTISYS INCORPORATED

Company Name

Authorized Agent Signature

Authorized Agent (Print or Type)

Date

FOR THE STATE:

Signature

Sharon Walenga-Maynard, Sourcing Director

Name & Title

DTMB Procurement

Agency

Date

ATTACHMENT A - PRICING

ITEM Initial Cost Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

System Implementation

(Includes – delivery, installation and testing)

$638,758.00

Training Services (includes all travel costs) INCLUDED

Maintenance / Support for MX6000 Card Issuance System

(8AM-5PM Monday – Friday)

$15,000.00 $20,000.00 $57,500.00 $60,375.00 $63,393.75 $60,375.00 $61,884.00 $63,431.00 $65,017.00 $66,642.00

Supplies - List all supplies needed for continuous system operation.

Approx. Yield Unit Cost Box of CR80 .030 mil 4/0 full color w/UV image pre-printed cards 500 $60.00 Cleaning, Tape, Blue 23,500 $43.75 Cleaning Roller (4 needed) 200,000 $41.40 Graphics Monochrome Ribbon, Black Single Sided 16,280 $63.50 Full Color Print Ribbon Set 31,370 $1,995.00 DuraGard Laminate, 1.0 mil, Holographic, Full Card 1,650 $550.00 Stickers, Card Affixing, MXD, Double-sided Adhesive 15,200 $120.00 Envelope Sealing Wetter Fluid, 10-Liter 70,000 $131.00 Printheads 30,000 $995.00

Tier 1 pricing covers up to 240,000 cards/year, 60,000 per quarter. Any overages are billed at $0.05 per card.

Supplies exclude paper, envelopes and card stock.

ATTACHMENT B – MAINTENANCE & SUPPORT

EQUIPMENT: DATA CARD MX6000 CARD ISSUANCE SYSTEM & SOFTWARE

SERIAL NUMBER: MX61026

LOCATION: 525 WEST ALLEGAN, CONSTITUTION HALL, 1st FLOOR, NORTHWEST

CORNER, LANSING, MI 48933

Maintenance Deliverables The Contractor must provide on-site preventative and remedial maintenance services recommended by the manufacturer. Contractor’s technicians must perform maintenance services, at the scheduled frequency, sufficient to keep the equipment in good operating condition and to ensure the system continues to perform at peak efficiency.

On-site maintenance services include all replacement parts and labor necessary to replace such parts, to make technical adjustments, and to clean and lubricate the equipment at the scheduled frequency.

On-site maintenance services include scheduled monthly preventive maintenance, software support, emergency repairs and travel. No travel or expenses will be reimbursed by the State.

The Contractor must provide all maintenance service performed by Original Equipment Manufacturer (OEM) trained, certified, and authorized technicians.

The Contractor is the sole point of contact for maintenance service.

Preventive Maintenance must be completed once a month. The Contractor must clean and lubricate the equipment at the scheduled frequency.

Within two Days of notification, the Contractor must adjust, repair or replace all equipment that is defective or not performing in compliance with the Contract. The Contractor must assume all costs for replacing parts or units and their installation including transportation and delivery fees, if any.

Hours of Operation The Contractor must provide service Monday through Friday, 8:00 a.m. to 5:00 p.m. local time, excluding holidays observed by State of Michigan including but not limited to: New Year’s Day, Martin Luther King Day, Presidents Day, Memorial Day, July 4th, Labor Day, Thanksgiving and Thanksgiving Friday, Christmas Eve Day and Christmas Day, New Year’s Eve Day.

Toll-Free Phone Number The Contractor must provide a toll-free telephone number for the State to report equipment failures and problems.

Warranty To the extent the Contractor is responsible for maintaining equipment/system(s), the Contractor represents and warrants that it will maintain the equipment/system(s) in good operating condition and will undertake all repairs and preventive maintenance according to the applicable manufacturer’s recommendations for the period specified in this Contract.

Parts/Component Replacement The Contractor must replace any part/component which fails to perform its function under normal use with new parts. Only in the event that new parts are not available, and after Program Manager notification, will rebuilt or refurbished parts be accepted.

Reports At the beginning of each maintenance/support period (March 23rd of each year), the Contractor must provide a monthly maintenance schedule for the 12-month period. Within 14 calendar days after each preventative maintenance and repair service is performed, the Contractor must provide the Program Manager with a summary report of the activity performed. This summary report must include a list of parts replaced, consumables used, a description of the work completed, and the amount of time needed to complete the service.

Software and Hardware Maintenance A software maintenance agreement includes unlimited technical phone support and access to all software upgrades and updates during the agreement.

The Contractor must provide timely updates for software and hardware.

Invoices Maintenance/support is billed annually, for each period effective March 23 – March 22.

Pricing Maintenance/support prices specified in Attachment A – Pricing are firm for the additional five option years, years 6-10.

Cancellation of Maintenance/Support Section 2.16.3 Termination for Convenience of the Contract specifies “…The State may fully or partially terminate this Contract for its convenience if the State determines that a termination is in the State’s best interest. The State may terminate this Contract for its convenience by giving Contractor notice at least 30 days before the date of termination…” If the State chooses to terminate this Contract, the Contractor must reimburse the State for the annual maintenance/support charges paid on a pro-rated basis, as of the effective date of the termination.

Rev 8/20/2012

Form No. DTMB-3521 (Rev. 7/2015) AUTHORITY: Act 431 of 1984 COMPLETION: Required PENALTY: Contract change will not be executed unless form is filed

DEPARTMENT OF TECHNOLOGY, MANAGEMENT AND BUDGET

PROCUREMENT

P.O. BOX 30026, LANSING, MI 48909

OR

525 W. ALLEGAN, LANSING, MI 48933

CHANGE NOTICE NO. 4

CONTRACT NO. 071B2200116

between

THE STATE OF MICHIGAN

and

NAME & ADDRESS OF CONTRACTOR PRIMARY CONTACT EMAIL

Identisys Incorporated Tim Smit tim_smit@identisys.com

7630 Commerce Way PHONE CONTRACTOR’S TAX ID NO.

(LAST FOUR DIGITS ONLY)

Eden Prairie MN, 55344 616-895-2047 *****8567

STATE CONTACTS AGENCY NAME PHONE EMAIL

PROGRAM MANAGER / CCI LARA Desmond Mitchell 517-373-4992 mitchelld6@michigan.gov

CONTRACT ADMINISTRATOR DTMB Sue Cieciwa 517-284-7007 cieciwas@michigan.gov

DESCRIPTION: Card Issuance System – Department of Licensing and Regulatory Affairs

INITIAL EFFECTIVE DATE

INITIAL EXPIRATION

DATE

INITIAL AVAILABLE

OPTIONS

EXPIRATION DATE BEFORE

CHANGE(S) NOTED BELOW

January 17, 2012 January 16, 2015 2 - 1 Year January 16, 2016

PAYMENT TERMS DELIVERY TIMEFRAME

Net 45 Days As Directed

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

☐ P-card ☐ Direct Voucher (DV) ☐ Other ☐ Yes ☒ No

MINIMUM DELIVERY REQUIREMENTS

N/A

DESCRIPTION OF CHANGE NOTICE

EXERCISE OPTION? LENGTH OF OPTION EXERCISE EXTENSION? LENGTH OF

EXTENSION REVISED EXP. DATE

☒ One Year ☐ January 16, 2017

CURRENT VALUE VALUE OF CHANGE NOTICE ESTIMATED AGGREGATE CONTRACT VALUE

$1,577,371.49 $ 0.00 $1,577,371.49

DESCRIPTION: Effective January 17, 2016, the last option year available on this contract is hereby exercised. The revised contract expiration date is January 16, 2017. All other terms, conditions, specifications and pricing remain the same. Per agency and contractor agreement, and DTMB Procurement approval.

Form No. DTMB-3521 (Rev. 4/2012) AUTHORITY: Act 431 of 1984 COMPLETION: Required PENALTY: Contract change will not be executed unless form is filed

STATE OF MICHIGAN

DEPARTMENT OF TECHNOLOGY, MANAGEMENT AND BUDGET

PROCUREMENT

P.O. BOX 30026, LANSING, MI 48909

525 W. ALLEGAN, LANSING, MI 48933

CHANGE NOTICE NO. 3

NAME & ADDRESS OF CONTRACTOR: PRIMARY CONTACT EMAIL

IdentiSys Inc. Tim Smit tim_smit@identisys.com 7630 Commerce Way TELEPHONE CONTRACTOR #, MAIL CODE

Eden Prairie, MN 55344 (616) 895-2047

CONTRACT COMPLIANCE

INSPECTOR LARA Desmond Mitchell (517) 373-4992 mitchelld6@michigan.gov BUYER DTMB Sue Cieciwa (517) 284-7007 cieciwas@michigan.gov

CONTRACT SUMMARY:

INITIAL EFFECTIVE DATE

INITIAL EXPIRATION

DATE

INITIAL AVAILABLE

OPTIONS

EXPIRATION DATE BEFORE CHANGE(S)

NOTED BELOW

January 17, 2012 January 16, 2015 2, one year January 16, 2015

PAYMENT TERMS F.O.B SHIPPED SHIPPED FROM

Net 45 Days Delivered As Directed Eden Prairie, MN ALTERNATE PAYMENT OPTIONS: AVAILABLE TO MiDEAL PARTICIPANTS

P-card Direct Voucher (DV) Other Yes No

MINIMUM DELIVERY REQUIREMENTS:

DESCRIPTION OF CHANGE NOTICE:

EXTEND CONTRACT

EXPIRATION DATE

EXERCISE CONTRACT

OPTION YEAR(S)

EXTENSION BEYOND

CONTRACT OPTION YEARS

LENGTH OF

OPTION/EXTENSION

EXPIRATION DATE

AFTER CHANGE

No Yes One Year January 16, 2016

VALUE/COST OF CHANGE NOTICE: ESTIMATED REVISED AGGREGATE CONTRACT VALUE:

$134,322.65 $1,577,371.49 Effective September 30, 2014, this Contract is exercising the first option year and is increasing by $134,322.65. The revised Contract expiration date is January 16, 2016.

Please note the Contract Compliance Inspector has been changed to Desmond Mitchell and the Contract Administrator has been changed to Sue Cieciwa.

All other terms, conditions, specifications, and pricing remain the same. Per DTMB and agency request, Contractor agreement, DTMB Procurement approval, and State Administrative Board approval on September 30, 2014.

PROCUREMENT

P.O. BOX 30026, LANSING, MI 48909

530 W. ALLEGAN, LANSING, MI 48933

CHANGE NOTICE NO. 2

IdentiSys Tim Smit tim_smit@identisys.com

INSPECTOR LARA Celesta Clarkson (517) 373-4992 clarksonc@michigan.gov BUYER DTMB William C. Walsh (517) 373-6535 walshw@michigan.gov

INITIAL EFFECTIVE DATE

INITIAL EXPIRATION

DATE

INITIAL AVAILABLE

OPTIONS

EXPIRATION DATE BEFORE CHANGE(S)

NOTED BELOW

January 17, 2012 January 16, 2015 2, one year January 16, 2015

PAYMENT TERMS F.O.B SHIPPED SHIPPED FROM

Net 45 Days Delivered As Directed Eden Prairie, MN ALTERNATE PAYMENT OPTIONS: AVAILABLE TO MiDEAL PARTICIPANTS

P-card Direct Voucher (DV) Other Yes No

EXPIRATION DATE

EXERCISE CONTRACT

OPTION YEAR(S)

EXTENSION BEYOND

CONTRACT OPTION YEARS

LENGTH OF

OPTION/EXTENSION

EXPIRATION DATE

AFTER CHANGE

No Yes January 16, 2015

VALUE/COST OF CHANGE NOTICE: ESTIMATED REVISED AGGREGATE CONTRACT VALUE:

$9,990.00 $1,443,048.24 Effective March 21, 2013, this change upgrades the hard drive for the Medical Marihuana Program (MMP) Datacard MX6000 printer, which includes a 2 year service agreement and full installation of IdentiSys service staff. Contract is increased by $9,990.00. All other terms, conditions, pricing and specifications remain the same. Per vendor and agency agreement and DTMB Procurement.

PROCUREMENT

P.O. BOX 30026, LANSING, MI 48909

CHANGE NOTICE NO. 1

IdentiSys Tim Smit tim_smit@identisys.com

INSPECTOR LARA Celesta Clarkson (517) 373-4992 clarksonc@michigan.gov BUYER DTMB William C. Walsh (517) 373-6535 walshw@michigan.gov

INITIAL EFFECTIVE DATE

INITIAL EXPIRATION

DATE

INITIAL AVAILABLE

OPTIONS

EXPIRATION DATE BEFORE CHANGE(S)

NOTED BELOW

January 17, 2012 January 16, 2015 Two One-Year Options January 16, 2015

PAYMENT TERMS F.O.B SHIPPED SHIPPED FROM

Net 45 Days Delivered As Directed Eden Prairie, MN ALTERNATE PAYMENT OPTIONS: AVAILABLE TO MiDEAL PARTICIPANTS

P-card Direct Voucher (DV) Other Yes No

EXPIRATION DATE

EXERCISE CONTRACT

OPTION YEAR(S)

EXTENSION BEYOND

CONTRACT OPTION YEARS

LENGTH OF

OPTION/EXTENSION

EXPIRATION DATE

AFTER CHANGE

No Yes January 16, 2015

VALUE/COST OF CHANGE NOTICE: ESTIMATED REVISED AGGREGATE CONTRACT VALUE:

$603,331.40 $1,433,058.24 Effective November 20, 2012 this Contract is hereby INCREASED by $603,331.40.

In addition, Attachment A, Pricing (Supplies) is revised per attached.

All other terms, conditions, specifications, and pricing remain the same.

Per agency request dated October 24, 2012, vendor request by email dated October 30, 2012, DTMB, Procurement approval, and State Administrative Board approval on November 20, 2012.

Change Notice Number 1

ATTACHMENT A - PRICING

Supplies - List all supplies needed for continuous system operation

Yield Unit Cost

Cleaning, Tape, Blue 23,500 $43.75

Cleaning Roller 200,000(4 needed) $41.40

Graphics Monochrome Ribbon, Black (based on 1” square)

16,280 $63.50

Full Color Print Ribbon Set (based on 1” square) 31,370 $1,995.00

DuraGard Holographics, 1.0 mil, Clear, Full Card 1,650 $550.00

HP Toner Cartridge 30,000 $320.00

Stickers, Card Affixing, MXD, Double-sided Adhesive Stickers

15,200 $120.00

Envelope Sealing Wetter Fluid, 10-Liter 70,000 $131.00

Printheads $995.00

Box of CR80 .030 mil preprinted UV cards 500 $48.00

* *Supplies exclude paper, envelopes and card stock

Optional supplies Yield Unit Cost

Box of CR80 .030 mil full color pre-printed cards 500 $60.00

Form No. DMB 234 (Rev. 1/96) AUTHORITY: Act 431 of 1984 COMPLETION: Required PENALTY: Contract will not be executed unless form is filed

STATE OF MICHIGAN

DEPARTMENT OF TECHNOLOGY, MANAGEMENT AND BUDGET January 19, 2012

PROCUREMENT

P.O. BOX 30026, LANSING, MI 48909

NOTICE

CONTRACT NO. 071B2200116

between

THE STATE OF MICHIGAN

and

NAME & ADDRESS OF CONTRACTOR TELEPHONE (616) 895-2047

IdentiSys Inc. Tim Smit 7630 Commerce Way CONTRACTOR NUMBER/MAIL CODE Eden Prairie, MN 55344

BUYER/CA (517) 373-6535

Email:tim_smit@identisys.com William C. Walsh, CPPB Contract Compliance Inspector: Celesta Clarkson (517) 373-4992 Clarksonc@michigan.gov

Card Issuance System – Department of Licensing and Regulatory Affairs CONTRACT PERIOD: 3 yrs. + 2 one-year options From: January 17, 2012 To: January 16, 2015

TERMS SHIPMENT

Net 45 As Directed

F.O.B. SHIPPED FROM

Destination/Installed Eden Prairie, MN

ALTERNATE PAYMENT OPTIONS:

P-card Direct Voucher (DV) Other

MINIMUM DELIVERY REQUIREMENTS

N/A

MISCELLANEOUS INFORMATION:

N/A

The terms and conditions of this Contract are those of ITB 071I2200047, this Contract Agreement and the vendor's quote dated December 7, 2011. In the event of any conflicts between the specifications, and terms and conditions, indicated by the State and those indicated by the vendor, those of the State take precedence.

Estimated Contract Value: $829,726.84 mailto:Clarksonc@michigan.gov

Form No. DMB 234 (Rev. 1/96) AUTHORITY: Act 431 of 1984 COMPLETION: Required PENALTY: Contract will not be executed unless form is filed

STATE OF MICHIGAN

DEPARTMENT OF TECHNOLOGY, MANAGEMENT AND BUDGET

PURCHASING OPERATIONS

P.O. BOX 30026, LANSING, MI 48909

THE STATE OF MICHIGAN

and

NAME & ADDRESS OF CONTRACTOR TELEPHONE (616) 895-2047

IdentiSys Inc. Tim Smit 7630 Commerce Way CONTRACTOR NUMBER/MAIL CODE Eden Prairie, MN 55344

BUYER/CA (517) 373-6535

Email:tim_smit@identisys.com William C. Walsh, CPPB Contract Compliance Inspector: Celesta Clarkson (517) 373-4992 Clarksonc@michigan.gov

Card Issuance System – Department of Licensing and Regulatory Affairs CONTRACT PERIOD: 3 yrs. + 2 one-year options From: January 17, 2012 To: January 16, 2015

TERMS SHIPMENT

Net 45 As Directed

F.O.B. SHIPPED FROM

Destination/Installed Eden Prairie, MN

ALTERNATE PAYMENT OPTIONS:

P-card Direct Voucher (DV) Other

MINIMUM DELIVERY REQUIREMENTS

N/A

MISCELLANEOUS INFORMATION:

The terms and conditions of this Contract are those of ITB 071I2200047, this Contract Agreement and the vendor's quote dated December 7, 2011. In the event of any conflicts between the specifications, and terms and conditions, indicated by the State and those indicated by the vendor, those of the State take precedence.

Estimated Contract Value: $829,726.84

THIS IS NOT AN ORDER: This Contract Agreement is awarded on the basis of our inquiry bearing the ITB No. 071I2200047. Orders for delivery will be issued directly by the Department of Licensing and Regulatory Affairs through the issuance of a Purchase Order Form.

All terms and conditions of the invitation to bid are made a part hereof.

FOR THE CONTRACTOR:

FOR THE STATE:

IdentiSys Inc.

Firm Name Signature

Jeff Brownlee, Chief Procurement Officer Authorized Agent Signature Name/Title

Tim Smit DTMB, Procurement Authorized Agent (Print or Type) Division

Date Date mailto:Clarksonc@michigan.gov

CONTRACT #071B2200116

Table of Contents Definitions

Article 1 – Statement of Work

36.1 Project Identification

36.1.12 Project Request

1.1.2 Background- Deleted – Not Applicable

1.2 Scope of Work and Deliverable(s)

1.2.1 In Scope – [Deleted, Not Applicable]

1.2.2 Deliverable(s)

1.2.3 Quantity

1.2.4 Ordering

1.2.5 Alternate Bids- Deleted – Not Applicable

1.3 Management and Staffing

1.3.1 Project Management

1.3.2 Reports –Deleted –Not Applicable

1.3.3 Staff, Duties, and Responsibilities

1.3.4 Meetings

1.3.5 Place of Performance

1.3.6 Reserved

1.3.7 Binding Commitments

1.3.8 Training

1.3.9 Security

1.4 Delivery and Acceptance

1.4.1 Time Frames

1.4.2 Minimum Order- Deleted – Not Applicable

1.4.3 Packaging

1.4.4 Palletizing- Deleted – Not Applicable

1.4.5 Delivery Term

1.4.6 Acceptance Process

1.4.7 Criteria

1.5 Pricing

1.5.1 Pricing

1.5.2 Quick Payment Terms

1.5.3 Price Term

1.5.4 Tax Excluded from Price

1.5.5 Invoices

1.6 Commodity Requirements

1.6.1 Customer Service

1.6.2 Research and Development- Deleted – Not Applicable

1.6.3 Quality Assurance Program- Deleted – Not Applicable

1.6.4 Warranty for Deliverable(s)

1.6.5 Special Incentives- Deleted – Not Applicable

1.6.6 Energy Efficiency

1.6.7 Environmental Requirements

1.6.8 Recycled Content and Recyclability

1.6.9 Materials Identification and Tracking

1.7 Extended Purchasing

1.7.1 MiDEAL- Deleted – Not Applicable

1.7.2 State Employee Purchases – Deleted – Not Applicable

Article 2 – Terms and Conditions

2.1 Contract Term

2.1.1 Contract Term

2.1.2 Options to Renew

2.2 Payments and Taxes

2.2.1 Fixed Prices for Deliverable(s)

2.2.2 Payment Deadlines

2.2.3 Invoicing and Payment – In General –[Deleted- Not Applicable

2.2.4 Pro-ration [Deleted, Not Applicable]

2.2.5 Final Payment and Waivers

2.2.6 Electronic Payment Requirement

2.2.7 Employment Taxes

2.2.8 Sales and Use Taxes

2.3 Contract Administration

2.3.1 Issuing Office

2.3.2 Contract Compliance Inspector

2.3.3 Project Manager

2.3.4 Contract Changes

2.3.5 Price Changes

2.3.6 Notices

2.3.7 Covenant of Good Faith

2.3.8 Assignments

2.3.9 Equipment

2.3.10 Facilities [Deleted, Not Applicable]

2.4 Contract Management

2.4.1 Contractor Personnel Qualifications

2.4.2 Contractor Key Personnel

2.4.3 Removal or Reassignment of Personnel at the State’s Request

2.4.4 Contractor Personnel Location

2.4.5 Contractor Identification

2.4.6 Cooperation with Third Parties

2.4.7 Relationship of the Parties

2.4.8 Contractor Return of State Equipment/Resources

2.4.9 Background Checks

2.4.10 Compliance With State Policies

2.5 Subcontracting by Contractor

2.5.1 Contractor Responsible

2.5.2 State Approval of Subcontractor

2.5.3 Subcontract Requirements

2.5.4 Competitive Selection

2.6 Reserved

2.7 Performance

2.7.1 Time of Performance

2.7.2 Service Level Agreements – Deleted - Not Applicable

2.7.3 Liquidated Damages – Deleted – Not Applicable

2.7.4 Excusable Failure

2.8 Acceptance of Deliverable(s)

2.8.1 Quality Assurance

2.8.2 Delivery Responsibilities

2.8.3 Process for Acceptance of Deliverable(s)

2.8.4 Acceptance of Deliverable(s)

2.8.5 Process for Approval of Written Deliverable(s) [Deleted, Not Applicable]

2.8.6 Process for Approval of Services [Deleted, Not Applicable]

2.8.7 Final Acceptance

2.9 Ownership [Deleted, Not Applicable]

2.10 State Standards [Deleted, Not Applicable]

2.11 Confidentiality

2.11.1 Confidential Information

2.11.2 Protection and Destruction of Confidential Information

2.11.3 Exclusions

2.11.4 No Obligation to Disclose

2.11.5 Security Breach Notification

2.12 Records and Inspections

2.12.1 Inspection of Work Performed

2.12.2 Retention of Records

2.12.3 Examination of Records

2.12.4 Audit Resolution

2.12.5 Errors

2.13 Warranties

2.13.1 Warranties and Representations

2.13.2 Warranty of Merchantability

2.13.3 Warranty of Fitness for a Particular Purpose

2.13.4 Warranty of Title

2.13.5 Equipment Warranty

2.13.6 New Deliverable(s)

2.13.7 Prohibited Products

2.13.8 Consequences For Breach

2.14 Insurance

2.14.1 Liability Insurance

2.14.2 Subcontractor Insurance Coverage

2.14.3 Certificates of Insurance and Other Requirements

2.15 Indemnification

2.15.1 General Indemnification

2.15.2 Code Indemnification [Deleted, Not Applicable]

2.15.3 Employee Indemnification

2.15.4 Patent/Copyright Infringement Indemnification

2.15.5 Continuing Obligation

2.15.6 Indemnification Procedures

2.15.7 Limitation of Liability

2.16 Termination by the State

2.16.1 Notice and Right to Cure

2.16.2 Termination for Cause

2.16.3 Termination for Convenience

2.16.4 Termination for Non-Appropriation

2.16.5 Termination for Criminal Conviction

2.16.6 Termination for Approvals Rescinded

2.16.7 Rights and Obligations upon Termination

2.16.8 Reservation of Rights

2.16.9 Contractor Transition Responsibilities

2.16.10 Transition Payments

2.17 Termination by the Contractor

2.17.1 Termination

2.18 Stop Work

2.18.1 Stop Work Order- Deleted – Not Applicable

2.18.2 Termination of Stop Work Order- Deleted – Not Applicable

2.18.3 Allowance of the Contractor’s Costs – Deleted – Not Applicable

2.19 Reserved

2.20 Dispute Resolution

2.20.1 General

2.20.2 Informal Dispute Resolution

2.20.3 Injunctive Relief

2.20.4 Continued Performance

2.21 Disclosure Responsibilities

2.21.1 Disclosure of Litigation

2.21.2 Other Disclosures

2.21.3 Call Center Disclosure- Deleted – Not Applicable

2.22 Extended Purchasing

2.22.1 MiDEAL Requirements –Deleted –Not Applicable

2.22.2 State Administrative Fee- Deleted – Not Applicable

2.22.3 State Employee Purchase Requirements – Deleted – Not Applicable

2.23 Laws

2.23.1 Governing Law

2.23.2 Compliance with Laws

2.23.3 Jurisdiction

2.23.4 Nondiscrimination

2.23.5 Unfair Labor Practices

2.23.6 Environmental Provision

2.23.7 Freedom of Information

2.23.8 Workplace Safety and Discriminatory Harassment- Deleted- Not Applicable

2.23.9 Prevailing Wage –Deleted- Not Applicable

2.23.10 Abusive Labor Practices

2.24 General Provisions

2.24.1 Bankruptcy and Insolvency

2.24.2 Media Releases

2.24.3 Contract Distribution

2.24.4 Permits

2.24.5 Website Incorporation

2.24.6 Future Bidding Preclusion [Deleted, Not Applicable]

2.24.7 Antitrust Assignment

2.24.8 Disaster Recovery

2.24.9 Legal Effect

2.24.10 Entire Agreement

2.24.11 Order of Precedence

2.24.12 Headings

2.24.13 Form, Function and Utility- Deleted- Not Applicable

2.24.14 Reformation and Severability

2.24.15 Approval

2.24.16 No Waiver of Default

2.24.17 Survival

Definitions

This section provides definitions for terms used throughout this document.

Business Day – whether capitalized or not, means any day other than a Saturday, Sunday, State employee temporary layoff day, or State-recognized legal holiday (as identified in the Collective Bargaining Agreement for State employees) from 8:00am through 5:00pm Eastern Time unless otherwise stated.

Buyer – the DTMB-Procurement employee identified on the cover page of this ITB.

Chronic Failure – as defined in applicable Service Level Agreements.

Contract – based on this ITB, an agreement that has been approved and executed by the awarded Contractor, the DTMB-Procurement Director, and the State Administrative Board.

Contractor – the awarded Contractor after the Effective Date.

Days – Business Days unless otherwise specified.

Deleted, Not Applicable – the section is not applicable or included in this ITB. This is used as a placeholder to maintain consistent numbering.

Deliverable(s) – physical goods or commodities as required or identified in a Statement of Work.

Eastern Time – either Eastern Standard Time or Eastern Daylight Time, whichever is prevailing in Lansing, Michigan.

Effective Date – the date that a binding contract is executed by the final party.

Final Acceptance – has the meaning provided in Section 2.8.7, Final Acceptance, unless otherwise stated in Article 1.

Key Personnel – any personnel designated as Key Personnel in Sections 1.3.3, Staff, Duties, and Responsibilities, and 2.4.2, Contractor Key Personnel, subject to the restrictions of Section 2.4.2.

Post-Industrial Waste – industrial by-products which would otherwise go to disposal and wastes generated after completion of a manufacturing process, but does not include internally generated scrap commonly returned to industrial or manufacturing processes.

Purchase Order – a written document issued by the State that requests full or partial performance of the Contract.

State – the State of Michigan.

State Location – any physical location where the State performs work. State Location may include state-owned, leased, or rented space.

Stop Work Order – a notice requiring the Contractor to fully or partially stop work in accordance with the terms of the notice.

Subcontractor – a company or person that the Contractor delegates performance of a portion of the Deliverable(s) to, but does not include independent contractors engaged by the Contractor solely in a staff augmentation role.

Unauthorized Removal – the Contractor’s removal of Key Personnel without the prior written consent of the State.

Article 1 – Statement of Work

36.1 Project Identification

This Contract is for the purchase of a Card Issuance System for the Department of Licensing and Regulatory Affairs (LARA) for the Medical Marihuana Registry Card program.

36.1.12 Project Request

This is a Statement of Work (SOW) for the purchase of a Card Issuance System, three year maintenance for the software and system and supplies noted in Attachment A – Price.

1.1.2 Background- Deleted – Not Applicable

1.2 Scope of Work and Deliverable(s)

1.2.1 In Scope – [Deleted, Not Applicable]

1.2.2 Deliverable(s)

Contractor must provide the following Deliverable(s):

The Datacard® MX6000™ card issuance system integrates the sophisticated technologies governments, integrators, financial institutions, retailers, service bureaus and other card issuers require to produce a wide range of cards and secure IDs.

• Optimized for high-volume performance. The MX6000 system delivers up to 1,500 cards per hour with outstanding efficiency. The innovative platform enables issuers to meet challenging production schedules for complex cards and jobs, while maintaining exceptional card integrity. A Microsoft® Windows® operating system interface promotes ease of use, and the system enhances productivity with secure, remote diagnostics and troubleshooting.

• Advanced inline technologies. The MX6000 system is the first of its kind to integrate full-card, pigment-based retransfer color printing with an array of other card personalization capabilities — including direct-to-card color and graphics printing — completely inline. Plus, the system’s flexible, modular design allows you to select a configuration that addresses current needs, then expand your system with new modules and technologies over time.

• Comprehensive security. The MX6000 system incorporates multiple security features for hardware, software and data. The system also uses access privileges and login authentication to help you control which operators have access to sensitive information.

• A complete card-to-envelope solution. The Datacard® MXD™ card delivery and Datacard® Mxi™ envelope insertion systems seamlessly integrate with the MX6000 system to enhance your overall card operations. In one automated process, you can affix cards and add marketing insertions into an envelope for a complete card-to-envelope solution.

The MX6000 system features the following modules:

• System controller

• Card input

• Card cleaning

• Magnetic stripe encoding

• MM module

• OCR-B/Bar code scanner

• Barrel dual interface smart card personalization

• Contact smart card personalization

• Contactless smart card personalization

• Graphics printing

• Color printing

• Artista® VHD retransfer color printing

• Laser engraving

• Multi-card buffer

• Basic topcoat

• CardGard™ UV-curing topcoat

• DuraGard® laminate

• Embossing

• Topping

• Vision ichig cation

• Label affi xing

• Card Flipper

• Card Output

Module Specs MX6000 Module Current Draw Heat Output Weight System Controller 0.79 Amps at 230V 594 BTUs per hour 240.0 lbs (109.0 kg) Card Input 0.40 Amps at 230V 309 BTUs per hour 100.0 lbs (45.4 kg) Card Cleaning 0.58 Amps at 230V 439 BTUs per hour 132.0 lbs (59.9 kg) Magnetic Stripe Encoding 0.39 Amps at 230V 300 BTUs per hour 85.0 lbs (38.6 kg) MM module 0.44 Amps at 230V 344 TBD BTUs per hour 89.0 lbs (40.4 kg) OCR-B/Bar Code Scanner 0.46 Amps at 230V 348 BTUs per hour 93.0 lbs (42.2 kg) Barrel Dual Interface 1.3 Amps at 230V (24 heads) 1020 BTUs per hour (24 heads) 200.0 lbs (50.3 kg) plus 1.75 lbs (0.68 kg) per Smart Card programming coupler Personalization

Contact Smart Card 0.74 Amps at 230V (11 stations) 566 BTUs per hour (11 stations) 111.0 lbs (90.7 kg) plus Personalization 1.5 lbs (0.79 kg) per programming station

Contactless 0.74 Amps at 230V (6 stations) 566 BTUs per hour (6 stations) 111.0 lbs (50.3 kg) plus 1.5 lbs Smart Card (0.68 kg) per programming station Personalization

Graphics Printing 0.60 Amps at 230V 1,476 BTUs per hour 348.0 lbs (157.9 kg) Artista® VHD Retransfer 4.97 Amps at 230V 3,794 BTUs per hour 481.0 lbs. (218.2 kg) Color Printing Laser Engraving Gen 2 0.95 Amps at 230V 696 BTUs per hour 154.0 lbs (69.9 kg) Multi-Card Buffer 0.39 Amps at 230V 304 BTUs per hour 90.0 lbs (40.8 kg) Basic Topcoat 1.79 Amps at 230V 1,390 BTUs per hour 197.0 lbs (89.4 kg) CardGard™ UV-Curing 2.24 Amps at 230V 6,790 BTUs per hour 340.0 lbs (154.2 kg) Topcoat DuraGard® Laminate 1.61 Amps at 230V 1,110 BTUs per hour 248.0 lbs (112.5 kg) Embossing 0.80 Amps at 230V for embossing 606 BTUs per hour for embossing 123.0 lbs (55.8 kg)

0.80 Amps at 230V for indent printing 606 BTUs per hour for indent printing Topping 0.76 Amps at 230V 559 BTUs per hour 101.0 lbs (45.8 kg) Vision Verifi cation 0.47 Amps at 230V 365 BTUs per hour 105.0 lbs (47.63 kg) Label Affi xing 0.54 Amps at 230V 425 BTUs per hour 100.0 lbs (45.4 kg) Card Flipper 0.46 Amps at 230V 348 BTUs per hour 93.0 lbs (42.2 kg) Card Output 0.43 Amps at 230V 307 BTUs per hour 100.0 lbs (45.4 kg)

System Specs Rated Speed Up to 1,500 CPH Operating System Microsoft® Windows® XP Professional Maximum Configuration 28 modules Card Types Supported ISO/IEC 7810 ID-1 Size; 30 mil (+/- 10%) System Height To top of module 50.1 in. (127.3 cm) System Depth 33.8 in. (85.85 cm) Electrical Requirements 230V, 50/60Hz, 15 Amps Operating Requirements Room temperature: 65° to 80° F (18° to 27° C); Humidity: 20% to 85% (non-condensing)

Storage Requirements Room temperature: -50° to 130° F (-46° to 54° C); Humidity: 0% to 100% (non-condensing) Agency Approvals FCC, UL, cUL, CE and RoHS Compliant.

Card Materials Supported All card materials can be processed, including PVC, composite, polycarbonate, ABS, PET and PETG Limitations may exist for each personalization or verification technology

1.2.3 Quantity

The State is not obligated to purchase in any specific quantity.

1.2.4 Ordering

The State will issue a Purchase Order, which must be approved by the Contract Compliance Inspector, to order any Deliverable(s). The Contractor is not authorized to begin performance until receipt of a Purchase Order.

1.2.5 Alternate Bids- Deleted – Not Applicable

1.3 Management and Staffing

1.3.1 Project Management

The Contractor will carry out this project under the direction and control of the Department of Licensing and Regulatory Affairs.

The project manager will meet as necessary with the Contractor’s project manager to review progress and provide necessary guidance.

Within 15 Days of the Effective Date, the Contractor will submit a project plan to the project manager for final approval. The plan must include the project breakdown showing sub-projects, tasks, and resources required.

1.3.2 Reports –Deleted –Not Applicable

1.3.3 Staff, Duties, and Responsibilities

The following Contractor personnel are assigned to this Contract:

Name Tim Smit Name Chris Sinnen Title District Sales Manager Title Service Operations Manager

Phone 616-889-6532 Phone 952-294-1200

Email tim_smit@identisys.com Email chris_sinnen@identisys.com

Name Joe Wright Name Scott Nordquist Title VP of Sales Title Service Manager

Phone 651-329-4747 Phone 952-294-1221

Email joe_wright@identisys.com Email scott_nordquist@identisys.com

Name Becky Woitas Name Nick Painter Title Accounts Receivable Title Lead Service Technician

Phone 952-294-1200 Phone 517-449-7745

Email becky_woitas@identisys.com Email nick_painter@identisys.com mailto:tim_smit@identisys.com mailto:chris_sinnen@identisys.com mailto:joe_wright@identisys.com mailto:scott_nordquist@identisys.com mailto:becky_woitas@identisys.com mailto:nick_painter@identisys.com

1.3.4 Meetings

The State may request a kick-off meeting with the Contractor within fifteen (15) days of the Effective Date. The State may request other meetings as it deems appropriate.

1.3.5 Place of Performance

The Contractor must list the location of all facilities that will be involved in performing the Contract:

Full address of place of performance

Owner/operator of facility to be used

Percent (%) of Contract value to be performed at listed location

7667 Bittersweet Ct.

Allendale, MI 49401

IdentiSys Inc.

7630 Commerce Way Eden Prairie, MN 55344

IdentiSys Inc.

1.3.6 Reserved

1.3.7 Binding Commitments

Tim Smit – District Sales Manager has the authority to make binding commitments on the Contractor’s behalf.

1.3.8 Training

Implementation includes preparation for spacing, production environment requirements, data file and graphics review & project management of implementation events.

Installation includes the delivery and unpacking of all equipment, set-up and power up, connection to the network, card testing and system diagnostics.

Training includes operator and administrator orientation on all aspects of data file management, individual equipment components, general troubleshooting and cleaning requirements. Training will take place during normal working hours, Monday – Friday, 8:00 A.M. to 5:00 P.M.

Maintenance ensures that the system continues to perform at peak efficiency after the warranty period is over and covers all parts and labor, as well as, preventive maintenance, software support, and emergency repairs.

Extended maintenance coverage is also available on systems that require service coverage beyond standard contract hours. A software maintenance agreement includes unlimited technical phone support and access to all software upgrades and updates during the agreement.

1.3.9 Security

Contractor uses an independent company which performs a detailed criminal, financial and driving record background check. Should the State of Michigan require any additional information, Contractor will provide that information. Contractor personnel do not wear uniforms, but they do wear an identification badge at all times.

All personnel that will be working on this Contract have satisfactorily completed a background check.

1.4 Delivery and Acceptance

1.4.1 Time Frames

Contractor will do everything that it can do to ensure that the new equipment is operational at the earliest possible date.

1.4.2 Minimum Order- Deleted – Not Applicable

1.4.3 Packaging

Packaging and containers must meet the current requirements of state and federal law applicable to rail and motor carrier freight classifications, which will permit application of the lowest freight rate.

1.4.4 Palletizing- Deleted – Not Applicable

1.4.5 Delivery Term

Unless specified otherwise below, delivery is governed by Section 2.8.2, Delivery Responsibilities.

All deliverables listed in 1.2.2 will have freight charges included in the purchase.

1.4.6 Acceptance Process

The acceptance process is defined in Section 2.8.4, Acceptance of Deliverable(s), unless otherwise defined in this section.

1.4.7 Criteria

The State will use the following criteria to determine acceptance of Deliverable(s):

On time delivery of Card Issuance System.

On time delivery of supplies Training of LARA personnel on use of system

Timely upgrades for software and hardware

1.5 Pricing

1.5.1 Pricing

Contractor pricing is stated in Attachment A.

1.5.2 Quick Payment Terms

The Contractor will offer a quick payment discount of 1% off an invoice if paid within 15 Days from the State’s receipt of the invoice or delivery of the Deliverable(s), whichever is later.

1.5.3 Price Term

Prices in Attachment A are firm with prospective renegotiation at an agreed upon time. The criteria for a re-determination of pricing are under Section 2.3.5, Price Changes.

1.5.4 Tax Excluded from Price

(a) Sales Tax: The State is exempt from sales tax for direct purchases. The Contractor’s prices must not include sales tax. DTMB-Procurement will furnish exemption certificates for sales tax upon request.

(b) Federal Excise Tax: The State may be exempt from Federal Excise Tax, or the taxes may be reimbursable, if articles purchased under any resulting Contract are used for the State’s exclusive use.

Certificates showing exclusive use for the purposes of substantiating a tax-free, or tax-reimbursable sale will be sent upon request.