STATE OF MICHIGAN PROCUREMENT

Department Technology, Management and Budget Central Procurement Services 320 S Walnut Street Lansing, MI 48933 P.O. Box 30026, Lansing, MI 48909

CONTRACT CHANGE NOTICE

Change Notice Number 2 to

Contract Number MA250000000844

C O

N

TR

AC

TO

R

Hospital Network Healthcare Services

6212 American Avenue

Portage MI 49002

Stanley Burland

269-329-3506 burlands@hnv-hnhs.com

CV0013382

ST

AT

E

Pr og ra m

M an ag er

Stephanie A. Smoyer MDOC

SmoyerS@michigan.gov

C on tr ac t Ad m in is tr at or Alannah Doak DTMB

(517) 230-9424

DoakA@michigan.gov

CONTRACT SUMMARY

Hazardous and Medical Waste Disposal - Statewide

INITIAL EFFECTIVE DATE

October 1, 2025

INITIAL EXPIRATION DATE

October 1, 2028

INITIAL AVAILABLE OPTIONS

5 - 1 Year

EXPIRATION DATE BEFORE

October 1, 2028

PAYMENT TERMS

Net 45

DELIVERY TIMEFRAME

N/A

ALTERNATE PAYMENT OPTIONS

P-Card Direct Voucher (PRC) Other

EXTENDED PURCHASING

Yes No

MINIMUM DELIVERY REQUIREMENTS

N/A

DESCRIPTION OF CHANGE NOTICE

OPTION LENGTH OF OPTION EXTENSION LENGTH OF EXTENSION

REVISED EXP. DATE

CURRENT VALUE

$2,000,000.00

VALUE OF CHANGE NOTICE

$0.00

ESTIMATED AGGREGATE CONTRACT VALUE

$2,000,000.00

DESCRIPTION

Please note the Program Manager or Contract Administrator may have changed, and are reflected on this Change Notice.

Effective July 31, 2026, Country Mile Document Destruction has been added as an additional subcontractor under section 3.5 of Schedule A.

Country Mile Document Destruction 148 South School Road, Daggett, MI 49821 906-753-9905

All other terms, conditions, specifications and pricing remain the same. Per contractor and agency agreement, and DTMB Central Procurement approval.

Central Procurement Services 320 S Walnut Street Lansing, MI 48933 P.O. Box 30026, Lansing, MI 48909

CONTRACT CHANGE NOTICE

Change Notice Number 1 to

Contract Number MA250000000844

C O

N

TR

AC

TO

R

Hospital Network Healthcare Services

6212 American Avenue

Portage MI 49002

Stanley Burland

269-329-3506 burlands@hnv-hnhs.com

CV0013382

ST

AT

E

Pr og ra m

M an ag er

Stephanie A. Smoyer MDOC

SmoyerS@michigan.gov

C on tr ac t Ad m in is tr at or Alannah Doak DTMB

(517) 230-9424

DoakA@michigan.gov

CONTRACT SUMMARY

Hazardous and Medical Waste Disposal - Statewide

INITIAL EFFECTIVE DATE

October 1, 2025

INITIAL EXPIRATION DATE

October 1, 2028

INITIAL AVAILABLE OPTIONS

5 - 1 Year

EXPIRATION DATE BEFORE

October 1, 2028

PAYMENT TERMS

Net 45

DELIVERY TIMEFRAME

N/A

ALTERNATE PAYMENT OPTIONS

P-Card Direct Voucher (PRC) Other

EXTENDED PURCHASING

Yes No

MINIMUM DELIVERY REQUIREMENTS

N/A

DESCRIPTION OF CHANGE NOTICE

OPTION LENGTH OF OPTION EXTENSION LENGTH OF EXTENSION

REVISED EXP. DATE

CURRENT VALUE

$2,000,000.00

VALUE OF CHANGE NOTICE

$0.00

ESTIMATED AGGREGATE CONTRACT VALUE

$2,000,000.00

DESCRIPTION

Please note the Program Manager or Contract Administrator may have changed, and are reflected on this Change Notice.

Effective 3/25/2026, Schedule B - Pricing has been updated to include additional MDHHS locations.

All other terms, conditions, specifications and pricing remain the same. Per contractor and agency agreement, and DTMB Central Procurement approval.

Name Address City State Zip

Type of Waste:

Hazardous/Medical/

Both

1 Alger Correctional Facility N6141 Industrial Park Dr Munising MI 49862 Both 2 Baraga Correctional Facility 13924 Wadaga Rd Baraga MI 49908 Both 3 Bellamy Creek Correctional Facility 1727 W Bluewater Hwy Ionia MI 48846 Both 4 Carson City Correctional - Healthcare 10274 E Boyer Rd Carson City MI 48811 Both 5 Central Michigan Correctional Facility 320 Hubbard St Saint Louis MI 48880 Both 6 Chippewa Correctional Facility 4269 W M 80 Kincheloe MI 49784 Both 7 Cooper Street Correctional Facility 3100 Cooper St Jackson MI 49201 Both 8 Duane Waters Health Center 3857 Cooper St Jackson MI 49201 Both 9 Earnest C Brooks Correctional Facility 2500 S Sheridan Dr Muskegon Heights MI 49444 Both

10 G Robert Cotton Correctional 3500 N Elm Ave Jackson MI 49201 Both 11 Gus Harrison Correctional Facility 2727 E Beecher St Adrian MI 49221 Both 12 Ionia Correctional Facility 1576 W Bluewater Hwy Ionia MI 48846 Both 13 Kinross Correctional Facility 4533 W Industrial Park Dr Kincheloe MI 49786 Both 14 Lakeland Correctional Facility 141 1st St Coldwater MI 49036 Both 15 Macomb Correctional Facility 34625 26 Mile Rd Lenox MI 48048 Both 16 Marquette Branch Prison 1960 US 41 S Marquette MI 49855 Both 17 Muskegon Correctional Facility 2400 S Sheridan Dr Muskegon MI 49442 Both

18 Newberry Correctional Facility 13747 E. County Road 428 Newberry MI 49868 Both 19 Oaks Correctional Facility 1500 Caberfae Hwy Manistee MI 49660 Both 20 Parnall Correctional Facility 1780 E Parnall Rd Jackson MI 49201 Both 21 Richard A Handlon Correctional 1728 W Bluewater Hwy Ionia MI 48846 Both 22 Saginaw Correctional Facility 9625 Pierce Rd Freeland MI 48623 Both 23 St Louis Correctional Facility 8585 N Croswell Rd Saint Louis MI 48880 Both 24 Thumb Correctional Facility 3225 John Conley Dr Lapeer MI 48446 Both 25 Womens Huron Valley Correctional 3201 Bemis Rd Ypsilanti MI 48197 Both 26 Woodland Center Correctional 9036 E M 36 Whitmore Lake MI 48189 Both

27 Michigan State Police - Crime Lab 103 S James St Grayling MI 49738 Both 28 Michigan State Police - Crime Lab 6296 Dixie Hwy Bridgeport MI 48722 Both 29 Michigan State Police - Crime Lab 720 Fuller Ave NE Grand Rapids MI 49503 Both 30 Michigan State Police - Crime Lab 7320 N Canal Rd Lansing MI 48913 Both 31 Michigan State Police - Crime Lab 42145 W. 7 Mile Rd Northville MI 48167 Both 32 Michigan State Police - Crime Lab 1924 Industrial Parkway Marquette MI 49855 Both 33 Michigan State Police - Crime Lab 1301 Third St Detroit MI 48226 Both

34 RRD Laboratory 3350 N Martin Luther King Blvd Lansing MI 48906 Hazardous

35 State of Michigan - Agricultural Lab 1615 Harrison Rd East Lansing MI 48823 Both 36 State of Michigan - Agricultural Lab 16860 M-32 East Atlanta MI 49709 Both

37 Bureau of Laboratories 50 N. Martin Luther King Jr. Bl Lansing MI 48906 Both

Bureau of Laboratories- new lab opening in 2027 Crowner Rd. Lansing MI 48821 Both

39 Walter Reuther 30901 Palmer Westland MI 48186 Both 40 Caro Center 2000 Chamber Rd Caro MI 48723 Both 41 Center for Forensic Psychiatry 8303 Platt Rd Saline MI 48176 Both 42 Hawthorn Center 18471 Haggerty Rd Northville MI 48168 Both 43 Kalamazoo Psychiatric Hospital 1312 Oakland Dr Kalamazoo MI 49008 Both 44 ACCESS 4301 E 14 Mile Rd Sterling Heights MI 48310 Sharps 45 COPE Network/Kalamazoo Harm Reduc. 3330 Miller Rd Kalamazoo MI 49001 Sharps 46 Detroit Recovery Project 1121 E. Mcnichols Rd Detroit MI 48203 Sharps 47 Grand Rapids Red Project 401 Hall St. SE Grand Rapids MI 49507 Sharps 48 Harm Reduction Michigan 124 Munson Ave Traverse City MI 49686 Sharps 49 Harm Reduction Michigan 850 B N. Mitchell Street Cadillac MI 49602 Sharps 50 Home of New Vision 434 Wildwood Ave Jackson MI 49201 Sharps

* All Department of Corrections sites will have regular medical waste.

Hazardous waste will be on an as needed basis.

NOTE:

Department of Corrections

Department of Health and Human Services

Department of Environment, Great Lakes, and Energy

Department of Agriculture and Rural Development

Michigan State Police

STATE OF MICHIGAN

MA: 250000000844

SCHEDULE B - Pricing Hazardous and Medical Waste Disposal - Statewide

51 Lansing Syringe Access 913 W Holmes Rd. Ste 130 Lansing MI 48910 Sharps 52 LEAF 211 E Michigan Ave Ypsilanti MI 48198 Sharps

53 Punks with Lunch 913 W Holmes Rd. Ste 130 *Until the New Year Lansing MI 48910 Sharps

54 Salvation Army Harbor Light 815 E 1st St Monroe MI 48161 Sharps 55 SHAR Academy 1851 W. Grand Blvd Detroit MI 48208 Sharps 56 SOOAR 122 South St Belleville MI 48111 Sharps

57 MIOSHA - Technical Services Division 7707 Rickle Rd Lansing MI 48917 Hazardous

Michigan Veteran Homes at Grand Rapids 2950 Monroe Ave NE Grand Rapids MI 49505 Medical

Michigan Veteran Homes D.J. Jacobetti 425 Fisher Street Marquette MI 49855 Medical

Michigan Veteran Homes at Chesterfield Township 47901 Sugarbush Road

Chesterfield Township MI 48047 Medical

Michigan Veterans Facility Authority

Department of Labor and Economic Opportunity

LOCATION

PRICE PER

CONTAINER

Tote/Box/Sharps

PRICE PER

CONTAINER

Herbies UP Stop Fee Turn away Fee

000001 Baraga Correctional Facility $30.00 $150 $30.00 000002 Alger Correctional Facility $30.00 $150 $30.00 000003 Bellamy Creek Correctional Fac $30.00 $30.00 000004 Carson City Correctional - Healthcare $30.00 $30.00 000005 Central Michigan Correctional Facility $30.00 $30.00 000006 Chippewa Correctional Facility $30.00 $150 $30.00 000007 Cooper Street Correctional $30.00 $30.00 000010 Duane Waters Health Center $30.00 $30.00 000011 EC Brooks Correctional Facility $30.00 $30.00 000012 G Robert Cotton Correctional $30.00 $30.00 000013 Gus Harrison Correctional Facility $30.00 $30.00 000014 Ionia Correctional Facility $30.00 $30.00 000015 Kinross Correctional Facility $30.00 $150 $30.00 000016 Lakeland Correctional Facility $30.00 $30.00 000017 Macomb Correctional Facility $30.00 $30.00 000018 Marquette Branch Prison $30.00 $150 $30.00 000020 Muskegon Correctional Facility $30.00 $150 $30.00 000021 Newberry Correctional Facility $30.00 $30.00 000022 Oaks Correctional Facility $30.00 $30.00 000024 Parnall Correctional Facility $30.00 $30.00 000025 Richard A Handlon Correctional $30.00 $30.00 000026 Saginaw Correctional Facility $30.00 $30.00 000028 St Louis Correctional Facility $30.00 $30.00 000029 Thumb Correctional Facility $30.00 $30.00 000031 Womens Huron Valley Correctional $30.00 $30.00 000032 Woodland Center Correctional $30.00 $30.00 000034 Jackson Regional Maintenance Department $30.00 $30.00 000001 Caro Psychiatric Hospital $30.00 $30.00 000001 MSP Crime Lab - Bridgeport $30.00 $30.00 000002 MSP Crime Lab - Detroit $30.00 $30.00 000003 MSP Crime Lab - Grand Rapids $30.00 $30.00 000004 MSP Crime Lab - Grayling $30.00 $30.00 000005 MSP Crime Lab - Lansing $30.00 $75.00 $30.00 000006 MSP Crime Lab - Marquette $30.00 $150.00 $30.00 000007 MSP Crime Lab - Northville $30.00 $30.00 000001 State Of MI Agricultural Lab - ATL $30.00 $30.00 000002 State Of MI Agricultural Lab - EL $30.00 $30.00 000001 Kalamazoo Psychiatric Hospital $30.00 $30.00 000001 Grand Rapids Home For Veterans $30.00 $75.00 $30.00 000001 Walter P Reuther Psychiatric Hospital $30.00 $30.00 000001 Michigan Career & Technical Institute $30.00 $30.00 000001 Center For Forensic Psychiatry $30.00 $30.00 000001 State of Michigan Warehouse Complex $30.00 $30.00 000001 Michigan Dept of Health & Human Services $30.00 $30.00 000001 D J Jacobetti Home For Veterans $30.00 $150 $30.00 000001 Michigan Veterans Home $30.00 $30.00

000001 Cadillac Place $30.00 $30.00 000001 Michigan Gaming Control Board $30.00 $30.00 000002 MIOSHA Laboratory $30.00 $30.00

000001 ACCESS $30.00 $30.00

000002 COPE Network/Kalamazoo Harm Reduction $30.00 $30.00 000003 Detroit Recovery Project $30.00 $30.00 000004 Grand Rapids Red Project $30.00 $30.00 000005 Harm Reduction Michigan (Traverse City) $30.00 $30.00 000006 Harm Reduction Michigan (Cadillac) $30.00 $30.00 000007 Home of New Vision $30.00 $30.00 000008 Lansing Syringe Access $30.00 $30.00

000009 LEAF $30.00 $30.00

000010 Punks with Lunch $30.00 $30.00 000011 Salvation Army Harbor Light $30.00 $30.00 000012 SHAR Academy $30.00 $30.00

000013 SOOAR $30.00 $30.00

320 S Walnut Street Lansing, MI 48933

NOTICE OF CONTRACT

between

THE STATE OF MICHIGAN

and

6212 American Avenue

Portage Michigan 49002

Stanley Burland

269-329-3506 burlands@hnv-hnhs.com

CV0013382

Hospital Network Healthcare Services

C O

N

TR

A C

TO

R SmoyerS@michigan.gov

Alannah Doak

(517) 230-9424

DTMB

Stephanie A. Smoyer MDOC

DoakA@michigan.gov

CONTRACT SUMMARY

DESCRIPTION: Hazardous and Medical Waste Disposal - Statewide

INITIAL EFFECTIVE DATE INITIAL EXPIRATION DATE EXPIRATION DATE BEFORE

CHANGE(S) NOTED BELOW

10/1/2025 10/1/2028 5 - 1 Year

PAYMENT TERMS DELIVERY TIMEFRAME

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

MINIMUM DELIVERY REQUIREMENTS

N/A

P-card Payment Request (PRC) Other Yes No

MISCELLANEOUS INFORMATION

THIS IS NOT AN ORDER: This contract Agreement is awarded on the basis of our inquiry bearing RFP No.

240000002667. Orders for delivery will be issued directly by Departments through the issuance of a Delivery Order.

ESTIMATED CONTRACT VALUE AT TIME OF EXECUTION $2,000,000.00

N/ANet 45

C on tra ct

Ad m in is tra to r Pr og ra m M an ag er

ST

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TE

P.O. Box 30026, Lansing, MI 48909

NOTICE OF CONTRACT NO. 250000000844

INITIAL

AVAILABLE

OPTIONS

10/1/2028

FOR THE CONTRACTOR:

Company Name

Authorized Agent Signature

Authorized Agent (Print or Type)

Date

FOR THE STATE:

Signature

Name and Title

Agency

Date

CONTRACT NO. 250000000844

Mich igan .gov/MiProcure ment

Version 2024-2 Page 1

STANDARD CONTRACT TERMS

This STANDARD CONTRACT (“Contract”) is agreed to between the State of Michigan (the “State”) and Hospital Network Healthcare Services (“Contractor”), a Michigan Corporation. This Contract is effective on October 1, 2025 (“Effective Date”), and unless terminated, will expire on October 1, 2028 (the “Term”).

This Contract may be renewed for up to five additional one-year period(s). Renewal is at the sole discretion of the State and will automatically extend the Term of this Contract. The State will document its exercise of renewal options via Contract Change Notice.

The parties agree as follows:

Duties of Contractor. Contractor must perform the services and provide the deliverables (the “Contract Activities”) described in a Statement of Work, the initial Statement of Work is attached as Schedule A – Statement of Work. An obligation to provide delivery of any commodity is considered a service and is a Contract Activity.

Contractor must furnish all labor, equipment, materials, and supplies necessary for the performance of the Contract Activities unless otherwise specified in a Statement of Work.

Contractor must: (a) perform the Contract Activities in a timely, professional, safe, and workmanlike manner consistent with standards in the trade, profession, or industry; (b) meet or exceed the performance and operational standards, and specifications of the Contract; (c) provide all Contract Activities in good quality, with no material defects; (d) not interfere with the State’s operations; (e) obtain and maintain all necessary licenses, permits or other authorizations necessary for the performance of the Contract; (f) cooperate with the State, including the State’s quality assurance personnel, and any third party to achieve the objectives of the Contract; (g) return to the State any State-furnished equipment or other resources in the same condition as when provided when no longer required for the Contract; (h) assign to the State any claims resulting from state or federal antitrust violations to the extent that those violations concern materials or services supplied by third parties toward fulfillment of the Contract; (i) comply with all State physical and IT security policies and standards which will be made available upon request; and (j) provide the State priority in performance of the Contract except as mandated by federal disaster response requirements. Any breach under this paragraph is considered a material breach.

Contractor must also be clearly identifiable while on State property by wearing identification issued by the State, and clearly identify themselves whenever making contact with the State.

Notices. All notices and other communications required or permitted under this Contract must be in writing and will be considered given and received: (a) when verified by written receipt if sent by courier; (b) when actually received if sent by mail without verification of receipt; or (c) when verified by automated receipt or electronic logs if sent by facsimile or email.

If to State: If to Contractor:

See Contract Administrator information shown below.

Stanley Burland 6212 American Avenue Portage, MI 49002

Version 2024-2 Page 2 burlands@hnv-hnhs.com 269-329-3506

Contract Administrator. The Contract Administrator, or the individual duly authorized for each party, is the only person authorized to modify any terms of this Contract, and approve and execute any change under this Contract (each a “Contract Administrator”):

State: Contractor:

Alannah Doak 320 S Walnut St.

Lansing, MI 48933 DoakA@michigan.gov 517-230-9424

Stanley Burland 6212 American Avenue Portage, MI 49002 burlands@hnv-hnhs.com 269-329-3506

Program Manager. The Program Manager for each party will monitor and coordinate the day-to-day activities of the Contract (each a “Program Manager”):

State: Contractor:

Stephanie A. Smoyer Michigan Department of Corrections SmoyerS@michigan.gov 517-780-5618

Stanley Burland 6212 American Avenue Portage, MI 49002 burlands@hnv-hnhs.com 269-329-3506

Performance Guarantee. Contractor must at all times have financial resources sufficient, in the opinion of the State, to ensure performance of the Contract and must provide proof upon request. The State may require a performance bond (as specified in a Statement of Work) if, in the opinion of the State, it will ensure performance of the Contract.

Insurance Requirements.

See Schedule C.

Reserved.

Reserved.

Relationship of the Parties. The relationship between the parties is that of independent contractors. Contractor, its employees, and agents will not be considered employees of the State. No partnership or joint venture relationship is created by virtue of this Contract.

Contractor, and not the State, is responsible for the payment of wages, benefits and taxes of Contractor’s employees and any subcontractors. Prior performance does not modify Contractor’s status as an independent contractor. Neither party has authority to contract for nor bind the other party in any manner whatsoever.

Intellectual Property Rights. If a Statement of Work requires Contractor to create any intellectual property, Contractor hereby acknowledges that the State is and will be the sole and exclusive owner of all right, title, and interest in the Contract Activities and all associated intellectual property rights, if any. Such Contract Activities are works made for hire as defined in Section 101 of the Copyright Act of 1976. To the extent any Contract Activities and related intellectual property do not qualify as works made for hire under the Copyright Act, Contractor mailto:DoakA@michigan.gov mailto:SmoyerS@michigan.gov

Version 2024-2 Page 3 will, and hereby does, immediately on its creation, assign, transfer and otherwise convey to the State, irrevocably and in perpetuity, throughout the universe, all right, title and interest in and to the Contract Activities, including all intellectual property rights therein.

Subcontracting. Contractor may not delegate any of its obligations under the Contract without the prior written approval of the State. Contractor must notify the State at least 90 calendar days before the proposed delegation and provide the State any information it requests to determine whether the delegation is in its best interest. If approved, Contractor must: (a) be the sole point of contact regarding all contractual matters, including payment and charges for all Contract Activities; (b) make all payments to the subcontractor; and (c) incorporate the terms and conditions contained in this Contract in any subcontract with a subcontractor. Contractor remains responsible for the completion of the Contract Activities, compliance with the terms of this Contract, and the acts and omissions of the subcontractor. The State, in its sole discretion, may require the replacement of any subcontractor.

Staffing. The State’s Contract Administrator may require Contractor to remove or reassign personnel providing services by providing a notice to Contractor.

Background Checks. Pursuant to Michigan law, all agencies subject to IRS Pub. 1075 are required to ask the Michigan State Police to perform fingerprint background checks on all employees, including Contractor and Subcontractor employees, who may have access to any database of information maintained by the federal government that contains confidential or personal information, including, but not limited to, federal tax information. Further, pursuant to Michigan law, any agency described above is prohibited from providing Contractors or Subcontractors with the result of such background check. For more information, please see Michigan Public Act 427 of 2018. Upon request, or as may be specified in a Statement of Work, Contractor must perform background checks on all employees and subcontractors and its employees prior to their assignment. The scope is at the discretion of the State and documentation must be provided as requested. Contractor is responsible for all costs associated with the requested background checks. The State, in its sole discretion, may also perform background checks.

Assignment. Contractor may not assign this Contract to any other party without the prior approval of the State. Upon notice to Contractor, the State, in its sole discretion, may assign in whole or in part, its rights or responsibilities under this Contract to any other party. If the State determines that a novation of the Contract to a third party is necessary, Contractor will agree to the novation and provide all necessary documentation and signatures.

Change of Control. Contractor will notify the State, within 30 days of any public announcement or otherwise once legally permitted to do so, of a change in Contractor’s organizational structure or ownership. For purposes of this Contract, a change in control means any of the following: (a) a sale of more than 50% of Contractor’s stock; (b) a sale of substantially all of Contractor’s assets; (c) a change in a majority of Contractor’s board members; (d) consummation of a merger or consolidation of Contractor with any other entity; (e) a change in ownership through a transaction or series of transactions; (f) or the board (or the stockholders) approves a plan of complete liquidation. A change of control does not include any consolidation or merger effected exclusively to change the domicile of Contractor, or any transaction or series of transactions principally for bona fide equity financing purposes.

Version 2024-2 Page 4

In the event of a change of control, Contractor must require the successor to assume this Contract and all of its obligations under this Contract.

Ordering. Contractor is not authorized to begin performance until receipt of authorization as identified in a Statement of Work.

Acceptance. Contract Activities are subject to inspection and testing by the State within 30 calendar days of the State’s receipt of them (“State Review Period”), unless otherwise provided in a Statement of Work. If the Contract Activities are not fully accepted by the State, the State will notify Contractor by the end of the State Review Period that either: (a) the Contract Activities are accepted but noted deficiencies must be corrected; or (b) the Contract Activities are rejected. If the State finds material deficiencies, it may: (i) reject the Contract Activities without performing any further inspections; (ii) demand performance at no additional cost; or

(iii) terminate this Contract in accordance with Section 24, Termination for Cause.

Within 10 business days from the date of Contractor’s receipt of notification of acceptance with deficiencies or rejection of any Contract Activities, Contractor must cure, at no additional cost, the deficiency and deliver unequivocally acceptable Contract Activities to the State. If acceptance with deficiencies or rejection of the Contract Activities impacts the content or delivery of other non-completed Contract Activities, the parties’ respective Program Managers must determine an agreed to number of days for re-submission that minimizes the overall impact to the Contract. However, nothing herein affects, alters, or relieves Contractor of its obligations to correct deficiencies in accordance with the time response standards set forth in this Contract.

If Contractor is unable or refuses to correct the deficiency within the time response standards set forth in this Contract, the State may cancel the order in whole or in part. The State, or a third party identified by the State, may perform the Contract Activities and recover the difference between the cost to cure and the Contract price plus an additional 10% administrative fee.

Reserved.

Reserved.

Reserved.

Invoices and Payment. Invoices must conform to the requirements communicated from time-to-time by the State. All undisputed amounts are payable within 45 days of the State’s receipt.

Contractor may only charge for Contract Activities provided as specified in a Statement of Work.

Invoices must include an itemized statement of all charges. The State is exempt from State sales tax for direct purchases and may be exempt from federal excise tax, if Services purchased under this Agreement are for the State’s exclusive use. Notwithstanding the foregoing, all fees are exclusive of taxes, and Contractor is responsible for all sales, use and excise taxes, and any other similar taxes, duties and charges of any kind imposed by any federal, state, or local governmental entity on any amounts payable by the State under this Contract.

The State has the right to withhold payment of any disputed amounts until the parties agree as to the validity of the disputed amount. The State will notify Contractor of any dispute within a reasonable time. Payment by the State will not constitute a waiver of any rights as to Contractor’s continuing obligations, including claims for deficiencies or substandard Contract Activities. Contractor’s acceptance of final payment by the State constitutes a waiver of all

Version 2024-2 Page 5 claims by Contractor against the State for payment under this Contract, other than those claims previously filed in writing on a timely basis and still disputed.

The State will only disburse payments under this Contract through Electronic Funds Transfer (EFT). Contractor must register with the State at http://www.michigan.gov/SIGMAVSS to receive electronic fund transfer payments. If Contractor does not register, the State is not liable for failure to provide payment. Without prejudice to any other right or remedy it may have, the State reserves the right to set off at any time any amount then due and owing to it by Contractor against any amount payable by the State to Contractor under this Contract.

Excluding federal government charges and terms, Contractor warrants and agrees that each of the fees, economic or product terms or warranties granted pursuant to this Contract are comparable to or better than the equivalent fees, economic or product term or warranty being offered to any commercial or government customer (including any public educational institution within the State of Michigan) of Contractor. If Contractor enters into any arrangements with another customer of Contractor to provide the products or services, available under this Contract, under more favorable prices, as the prices may be indicated on Contractor’s current U.S. and International price list or comparable document, then this Contract will be deemed amended as of the date of such other arrangements to incorporate those more favorable prices, and Contractor will immediately notify the State of such fee and formally memorialize the new pricing in a change notice.

Liquidated Damages. Liquidated damages, if applicable, will be assessed as described in a Statement of Work. The parties understand and agree that any liquidated damages (which includes but is not limited to applicable credits) set forth in this Contract are reasonable estimates of the State’s damages in accordance with applicable law. The parties acknowledge and agree that Contractor could incur liquidated damages for more than 1 event. The assessment of liquidated damages will not constitute a waiver or release of any other remedy the State may have under this Contract for Contractor’s breach of this Contract, including without limitation, the State’s right to terminate this Contract for cause under Section 24 and the State will be entitled in its discretion to recover actual damages caused by Contractor’s failure to perform its obligations under this Contract. However, the State will reduce such actual damages by the amounts of liquidated damages received for the same events causing the actual damages. Amounts due the State as liquidated damages may be set off against any fees payable to Contractor under this Contract, or the State may bill Contractor as a separate item and Contractor will promptly make payments on such bills.

Stop Work Order. The State may suspend any or all activities under the Contract at any time.

The State will provide Contractor a written stop work order detailing the suspension. Contractor must comply with the stop work order upon receipt. Within 90 calendar days, or any longer period agreed to by Contractor, the State will either: (a) issue a notice authorizing Contractor to resume work, or (b) terminate the Contract or delivery order. The State will not pay for Contract Activities, Contractor’s lost profits, or any additional compensation during a stop work period.

Termination for Cause. (a) The State may terminate this Contract for cause, in whole or in part, if Contractor, as determined by the State: (i) endangers the value, integrity, or security of any facility, data, or personnel; (ii) becomes insolvent, petitions for bankruptcy court proceedings, or has an involuntary bankruptcy proceeding filed against it by any creditor; (iii) engages in any http://www.michigan.gov/SIGMAVSS

Version 2024-2 Page 6 conduct that may expose the State to liability; (iv) breaches any of its material duties or obligations under this Contract; or (v) fails to cure a breach within the time stated by the State in a notice of breach, if in its sole discretion the State has chosen to provide a time to cure. Any reference to specific breaches being material breaches within this Contract will not be construed to mean that other breaches are not material.

(b) If the State terminates this Contract under this Section, the State will issue a termination notice specifying whether Contractor must: (i) cease performance immediately. Contractor must submit all invoices for Contract Activities accepted by the State within 30 days of the date of termination. Failure to submit an invoice within that timeframe will constitute a waiver by Contractor for any amounts due to Contactor for Contract Activities accepted by the State under this Contract or (ii) continue to perform for a specified period. If it is later determined that Contractor was not in breach of the Contract, the termination will be deemed to have been a Termination for Convenience, effective as of the same date, and the rights and obligations of the parties will be limited to those provided in Section 25, Termination for Convenience.

The State will only pay for amounts due to Contractor for Contract Activities accepted by the State on or before the date of termination, subject to the State’s right to set off any amounts owed by the Contractor for the State’s reasonable costs in terminating this Contract. Contractor must promptly reimburse to the State any fees prepaid by the State prorated to the date of such termination, including any prepaid fees. The Contractor must pay all reasonable costs incurred by the State in terminating this Contract for cause, including administrative costs, attorneys’ fees, court costs, transition costs, and any costs the State incurs to procure the Contract Activities from other sources.

Termination for Convenience. The State may immediately terminate this Contract in whole or in part without penalty and for any reason or no reason, including but not limited to, appropriation or budget shortfalls. The termination notice will specify whether Contractor must:

(a) cease performance of the Contract Activities immediately. Contractor must submit all invoices for Contract Activities accepted by the State within 30 days of the date of termination.

Failure to submit an invoice within that timeframe will constitute a waiver by Contractor for any amounts due Contractor for Contract Activities accepted by the State under this Contract, or (b) continue to perform the Contract Activities in accordance with Section 26, Transition Responsibilities. If the State terminates this Contract for convenience, the State will pay all reasonable costs, as determined by the State, for State approved Transition Responsibilities to the extent the funds are available.

Transition Responsibilities. Upon termination or expiration of this Contract for any reason, Contractor must, for a period of time specified by the State (not to exceed 180 calendar days), provide all reasonable transition assistance requested by the State, to allow for the expired or terminated portion of the Contract Activities to continue without interruption or adverse effect, and to facilitate the orderly transfer of such Contract Activities to the State or its designees.

Such transition assistance may include, but is not limited to: (a) continuing to perform the Contract Activities at the established Contract rates; (b) taking all reasonable and necessary measures to transition performance of the work, including all applicable Contract Activities, training, equipment, software, leases, reports and other documentation, to the State or the State’s designee; (c) transferring title in and delivering to the State, at the State’s discretion, all completed or partially completed deliverables prepared under this Contract as of the Contract

Version 2024-2 Page 7 termination date; and (d) preparing an accurate accounting from which the State and Contractor may reconcile all outstanding accounts (collectively, “Transition Responsibilities”). This Contract will automatically be extended through the end of the transition period.

Return of State Property. Upon termination or expiration of this Contract for any reason, Contractor must take all necessary and appropriate steps, or such other action as the State may direct, to preserve, maintain, protect, or return to the State all materials, data, property, and confidential information provided directly or indirectly to the Contractor by any entity, agent, vendor, or employee of the State.

Indemnification. Contractor must defend, indemnify and hold the State, its departments, divisions, agencies, offices, commissions, officers, and employees harmless, without limitation, from and against any and all actions, claims, losses, liabilities, damages, costs, attorney fees, and expenses (including those required to establish the right to indemnification), arising out of or relating to: (a) any breach by Contractor (or any of Contractor’s employees, agents, subcontractors, or by anyone else for whose acts any of them may be liable) of any of the promises, agreements, representations, warranties, or insurance requirements contained in this Contract; (b) any infringement, misappropriation, or other violation of any intellectual property right or other right of any third party; (c) any bodily injury, death, or damage to real or tangible personal property occurring wholly or in part due to action or inaction by Contractor (or any of Contractor’s employees, agents, subcontractors, or by anyone else for whose acts any of them may be liable); and (d) any acts or omissions of Contractor (or any of Contractor’s employees, agents, subcontractors, or by anyone else for whose acts any of them may be liable).

The State will notify Contractor in writing if indemnification is sought; however, failure to do so will not relieve Contractor, except to the extent that Contractor is materially prejudiced.

Contractor must, to the satisfaction of the State, demonstrate its financial ability to carry out these obligations.

The State is entitled to: (i) regular updates on proceeding status; (ii) participate in the defense of the proceeding; (iii) employ its own counsel; and to (iv) retain control of the defense, at its own cost and expense, if the State deems necessary. Contractor will not, without the State’s prior written consent (not to be unreasonably withheld), settle, compromise, or consent to the entry of any judgment in or otherwise seek to terminate any claim, action, or proceeding.

Any litigation activity on behalf of the State, or any of its subdivisions under this Section, must be coordinated with the Department of Attorney General. An attorney designated to represent the State may not do so until approved by the Michigan Attorney General and appointed as a Special Assistant Attorney General.

The State is constitutionally prohibited from indemnifying Contractor or any third parties.

Infringement Remedies. If, in either party’s opinion, any piece of equipment, software, commodity, or service supplied by Contractor or its subcontractors, or its operation, use or reproduction, is likely to become the subject of a copyright, patent, trademark, or trade secret infringement claim, Contractor must, at its expense: (a) procure for the State the right to continue using the equipment, software, commodity, or service, or if this option is not reasonably available to Contractor, (b) replace or modify the same so that it becomes non-

Version 2024-2 Page 8 infringing; or (c) accept its return by the State with appropriate credits to the State against Contractor’s charges and reimburse the State for any losses or costs incurred as a consequence of the State ceasing its use and returning it.

Limitation of Liability and Disclaimer of Damages. IN NO EVENT WILL THE STATE’S

AGGREGATE LIABILITY TO CONTRACTOR UNDER THIS CONTRACT, REGARDLESS OF THE

FORM OF ACTION, WHETHER IN CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY OR BY

STATUTE OR OTHERWISE, FOR ANY CLAIM RELATED TO OR ARISING UNDER THIS

CONTRACT, EXCEED THE MAXIMUM AMOUNT OF FEES PAYABLE UNDER THIS CONTRACT.

The State is not liable for consequential, incidental, indirect, or special damages, regardless of the nature of the action.

Disclosure of Litigation, or Other Proceeding. Contractor must notify the State within 14 calendar days of receiving notice of any litigation, investigation, arbitration, or other proceeding (collectively, “Proceeding”) involving Contractor, a subcontractor, or an officer or director of Contractor or subcontractor, that arises during the term of the Contract, including: (a) a criminal Proceeding; (b) a parole or probation Proceeding; (c) a Proceeding under the Sarbanes-Oxley Act; (d) a civil Proceeding involving: (1) a claim that might reasonably be expected to adversely affect Contractor’s viability or financial stability; or (2) a governmental or public entity’s claim or written allegation of fraud; or (3) any complaint filed in a legal or administrative proceeding alleging the Contractor or its subcontractors discriminated against its employees, subcontractors, vendors, or suppliers during the term of this Contract; or (e) a Proceeding involving any license that Contractor is required to possess in order to perform under this Contract.

State Data. All data and information provided to Contractor by or on behalf of the State, and all data and information derived therefrom, is the exclusive property of the State (“State Data”);

this definition is to be construed as broadly as possible. Upon request, Contractor must provide to the State, or a third party designated by the State, all State Data within 10 calendar days of the request and in the format requested by the State. Contractor will assume all costs incurred in compiling and supplying State Data. No State Data may be used for any marketing or commercial purposes.

Reserved.

Non-Disclosure of Confidential Information. The parties acknowledge that each party may be exposed to or acquire communication or data of the other party that is confidential, privileged communication not intended to be disclosed to third parties.

a. Meaning of Confidential Information. For the purposes of this Contract, the term “Confidential Information” means all information and documentation of a party that: (a) has been marked “confidential” or with words of similar meaning, at the time of disclosure by such party; (b) if disclosed orally or not marked “confidential” or with words of similar meaning, was subsequently summarized in writing by the disclosing party and marked “confidential” or with words of similar meaning; or, (c) should reasonably be recognized as confidential information of the disclosing party. The term “Confidential Information” does not include any information or documentation that was or is: (a) subject to disclosure under the Michigan Freedom of Information Act (FOIA); (b) already in the possession of the receiving party without an obligation of confidentiality; (c) developed independently by the receiving party, as demonstrated by the receiving party, without violating the disclosing

Version 2024-2 Page 9 party’s proprietary rights; (d) obtained from a source other than the disclosing party without an obligation of confidentiality; or, (e) publicly available when received, or thereafter became publicly available (other than through any unauthorized disclosure by, through, or on behalf of, the receiving party). For purposes of this Contract, in all cases and for all matters, State Data is deemed to be Confidential Information.

b. Obligation of Confidentiality. The parties agree to hold all Confidential Information in strict confidence and not to copy, reproduce, sell, transfer, or otherwise dispose of, give or disclose such Confidential Information to third parties other than employees, agents, or subcontractors of a party who have a need to know in connection with this Contract or to use such Confidential Information for any purposes whatsoever other than the performance of this Contract. The parties agree to advise and require their respective employees, agents, and subcontractors of their obligations to keep all Confidential Information confidential.

Disclosure to a subcontractor is permissible where: (a) use of a subcontractor is authorized under this Contract; (b) the disclosure is necessary or otherwise naturally occurs in connection with work that is within the subcontractor's responsibilities; and (c) Contractor obligates the subcontractor in a written contract to maintain the State's Confidential Information in confidence. At the State's request, any employee of Contractor or any subcontractor may be required to execute a separate agreement to be bound by the provisions of this Section.

c. Cooperation to Prevent Disclosure of Confidential Information. Each party must use its best efforts to assist the other party in identifying and preventing any unauthorized use or disclosure of any Confidential Information. Without limiting the foregoing, each party must advise the other party immediately in the event either party learns or has reason to believe that any person who has had access to Confidential Information has violated or intends to violate the terms of this Contract and each party will cooperate with the other party in seeking injunctive or other equitable relief against any such person.

d. Remedies for Breach of Obligation of Confidentiality. Each party acknowledges that breach of its obligation of confidentiality may give rise to irreparable injury to the other party, which damage may be inadequately compensable in the form of monetary damages.

Accordingly, a party may seek and obtain injunctive relief against the breach or threatened breach of the foregoing undertakings, in addition to any other legal remedies which may be available, to include, in the case of the State, at the sole election of the State, the immediate termination, without liability to the State, of this Contract or any Statement of Work corresponding to the breach or threatened breach.

e. Surrender of Confidential Information upon Termination. Upon termination of this Contract or a Statement of Work, in whole or in part, each party must, within 5 calendar days from the date of termination, return to the other party any and all Confidential Information received from the other party, or created or received by a party on behalf of the other party, which are in such party’s possession, custody, or control; provided, however, that Contractor must return State Data to the State following the timeframe and procedure described further in this Contract. Should Contractor or the State determine that the return of any Confidential Information is not feasible, such party must destroy the Confidential Information and must certify the same in writing within 5 calendar days from the date of termination to the other party. However, the State’s legal ability to destroy Contractor data

Version 2024-2 Page 10 may be restricted by its retention and disposal schedule, in which case Contractor’s Confidential Information will be destroyed after the retention period expires.

Reserved.

Reserved.

Reserved.

Records Maintenance, Inspection, Examination, and Audit. Pursuant to MCL 18.1470, the State or its designee may audit Contractor to verify compliance with this Contract. Contractor must retain and provide to the State or its designee and the auditor general upon request, all records related to the Contract through the term of the Contract and for 4 years after the latter of termination, expiration, or final payment under this Contract or any extension (“Audit Period”). If an audit, litigation, or other action involving the records is initiated before the end of the Audit Period, Contractor must retain the records until all issues are resolved.

Within 10 calendar days of providing notice, the State and its authorized representatives or designees have the right to enter and inspect Contractor's premises or any other places where Contract Activities are being performed, and examine, copy, and audit all records related to this Contract. Contractor must cooperate and provide reasonable assistance. If financial errors are revealed, the amount in error must be reflected as a credit or debit on subsequent invoices until the amount is paid or refunded. Any remaining balance at the end of the Contract must be paid or refunded within 45 calendar days.

This Section applies to Contractor, any parent, affiliate, or subsidiary organization of Contractor, and any subcontractor that performs Contract Activities in connection with this Contract.

Representations and Warranties. Contractor represents and warrants: (a) Contractor is the owner or licensee of any Contract Activities that it licenses, sells, or develops and Contractor has the rights necessary to convey title, ownership rights, or licensed use; (b) all Contract Activities are delivered free from any security interest, lien, or encumbrance and will continue in that respect; (c) the Contract Activities will not infringe the patent, trademark, copyright, trade secret, or other proprietary rights of any third party; (d) Contractor must assign or otherwise transfer to the State or its designee any manufacturer's warranty for the Contract Activities; (e) the Contract Activities are merchantable and fit for the specific purposes identified in the Contract; (f) the Contract signatory has the authority to enter into this Contract; (g) all information furnished by Contractor in connection with the Contract fairly and accurately represents Contractor's business, properties, finances, and operations as of the dates covered by the information, and Contractor will inform the State of any material adverse changes;(h) all information furnished and representations made in connection with the award of this Contract is true, accurate, and complete, and contains no false statements or omits any fact that would make the information misleading; and that (i) Contractor is neither currently engaged in nor will engage in the boycott of a person based in or doing business with a strategic partner as described in 22 USC 8601 to 8606. A breach of this Section is considered a material breach of this Contract, which entitles the State to terminate this Contract under Section 24, Termination for Cause.

Conflicts and Ethics. Contractor will uphold high ethical standards and is prohibited from: (a) holding or acquiring an interest that would conflict with this Contract; (b) doing anything that creates an appearance of impropriety with respect to the award or performance of the Contract;

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(c) attempting to influence or appearing to influence any State employee by the direct or indirect offer of anything of value; or (d) paying or agreeing to pay any person, other than employees and consultants working for Contractor, any consideration contingent upon the award of the Contract. Contractor must immediately notify the State of any violation or potential violation of these standards. This Section applies to Contractor, any parent, affiliate, or subsidiary organization of Contractor, and any subcontractor that performs Contract Activities in connection with this Contract.

Compliance with Laws. Contractor must comply with all federal, state and local laws, rules and regulations.

Reserved.

Reserved.

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.

Unfair Labor Practice. Under MCL 423.324, the State may void this Contract if the name of the Contractor, or the name of a subcontractor, manufacturer, or supplier of the…