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TABC 03.25.2026 RFP No. 458-E260331 – Exhibit D Liquidated Damages Page 1 of 4

EXHIBIT D RFP NO. 458-E260331 TAX ID STAMPS LIQUIDATED

DAMAGES FOR SERVICE LEVEL AGREEMENTS (SLA’S)

LIQUIDATED DAMAGES

Should the Vendor fail to complete or deliver the service level agreement(s) or project deliverables requirements within the specified parameters allowed by the RFP and Contract, then, for each calendar day of delay, TABC has the right to hold the Vendor to the standards set forth in the Tax ID Stamp Service Level Agreement Liquidated Damages list below as well as the right to without the Daily Charge amount(s) shown in the System Specific Service Level Agreement Liquidated Damages Table 1 below as liquidated damages.

Liquidated damages are compensation to TABC for costs incurred due to the Vendor’s delay and should not be construed as penalties.

Liquidated damages will be documented, calculated and withheld from TABC payments to Vendor invoices and reconciled monthly.

As applicable to a specific metric, the identified Severity Level of a system specific requirement shall indicate the liquidated damage daily charge for that metric. If remedied within the successful response remedy time for the Severity Level, Vendor shall not incur a liquidated damage daily charge.

System Specific Severity Levels are defined and their respective successful response remedy times outlined in the System Specific Severity Level Definitions Table 2 below.

Severity Level and whether a metric is successfully met is at the sole discretion of TABC and must be evidenced through documented contract requirements and the severity definitions herein.

Tax ID Stamp Service Level Agreement Liquidated Damages

a) Tax ID Stamps that do not to meet the minimum standards set in the Contract will not be accepted, and TABC will not pay for any costs associated with Tax ID Stamps that do not meet the minimum standards. Vendor will expedite shipping of replacement Tax ID Stamps that meet the minimum standards at no charge to TABC. This standard shall apply whether the Tax ID Stamps are defective and never met the minimum standards or are damaged and no longer meet the minimum standard as a result of the damage.

b) TABC will inform Vendor of the number of Tax ID Stamps needed for the coming fiscal year no later than July 1st. Vendor will have at least this many Tax ID Stamps available for the fiscal year. To the extent TABC becomes aware that there will be

TABC 03.25.2026 RFP No. 458-E260331 – Exhibit D Liquidated Damages Page 2 of 4 a need for additional Tax ID Stamps, Vendor will have the additional Tax ID Stamps in inventory within one month of TABC’s notice of the need.

c) TABC’s duty is to ensure that the collection of liquor taxes does not impede business. The failure to provide Tax ID Stamps in a timely manner will require additional work by TABC employees to serve Texas taxpayers. Accordingly, Tax ID Stamps must arrive at a Distributor within ten (10) business days of Vendor’s receipt of an order. If Vendor fails to deliver the requested Tax ID Stamps within ten (10) business days, then the price of the short number of Tax ID Stamps will be reduced by one percent (1%) for each day until the full order is fulfilled. If the Tax ID Stamp order exceeds TABC’s estimated number of Tax ID Stamps needed, no damages shall accrue.

System Specific Service Level Agreement Liquidated Damages Table 1

# METRIC SLA REQUIREMENT LIQUIDATED DAMAGES

DAILY CHARGE

LD 1 System Go Live Delayed system Go-Live beyond target date of 09/01/2026

$1,111,00 per day ($33,333.00 per month)

LD 2 System Functionality Issues Refers to all applicable system functionality referenced in section 2.1 Scope of Work of the RFP

S1 100% S2 50% S3 25%

LD 3 Data Integrity Refers to all applicable data integrity referenced in section 2.1 Scope of Work of the RFP

S1 100% S2 50% S3 25%

LD 4 System Unavailable Refers to all applicable system availability referenced in section 2.1 Scope of Work of the RFP

S1 100% S2 50% S3 25%

System Specific Severity Level Definitions Table 2

The table below defines the System Performance Severity Levels. These severity levels set the expected standards for system performance and specify the applicable Severity Level for liquidated damages if those standards are not met.

SEVERITY DEFINITION SUCCESSFUL

RESPONSE REMEDY

TIME

EXAMPLE(S)

S1 A Severity One (S1) issue is a defect inherent to or in the functioning of the Solution causing inability to access the Solution or Services

Acknowledge: Within ½ hour

Fix: Within 4 hours

System is down or unavailable.

User unable to submit an order.

TABC 03.25.2026 RFP No. 458-E260331 – Exhibit D Liquidated Damages Page 3 of 4 causing critical or significant impact to Customer’s business operations and no workaround is immediately available.

Report feature is not available, no workaround.

S2 A Severity Two (S2) Issue is a defect inherent to or in the functioning of the Solution that impairs the Solution or Services functionality, but where a practical workaround is readily available.

Customer and User can continue processing transactions.

Acknowledge: Within 8 hours

Fix: Within 40 hours

Email notifications are not being sent to TABC for orders submitted for review, but TABC users can login and see the orders in their queue awaiting review.

Order history is not consistently displayed throughout the system.

Account issues that require TABC to act on behalf of a Local Distributor.

S3 A Severity Three (S3) Issue is a defect inherent to or in the functioning of the Solution that does not impair the Solution or Services functionality and for which a practical workaround is readily available.

Acknowledge: Within 16 hours

Fix: Within 240 hours

The submit button on the order page moved from the center to the bottom right of the page. Orders can still be submitted but the button is in the wrong area on the page.

Liquidated Damages Calculation Method

1. Flat Rate per Daily Charge for System Related Metrics

• For unit per day, indicate a percentage of day the issue is not resolved for each severity level. The calculation is based on the number of days the defect affected business operations times the daily cost.

o Example: Severity 1 defect not fixed within 4 hours would yield liquidated damages in the amount of $1,111.00 per day, with the assumptions below and an average of 30 days per month.

Percenter per day = 100% Average monthly cost for the product is $33,333.00 Cost per day is $1,111.00 o Example: Severity 2 defect not fixed within 4 hours would yield liquidated damages in the amount of $555.50 per day, with the assumptions below and an average of 30 days per month.

Percent per day = 50% Average monthly cost for the product is $33,333

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Cost per day is $1,111.00 o Example: Severity 3 defect not fixed within 40 hours would yield liquidated damages in the amount of $277.75 per day, with the assumptions below and an average of 30 days per month.

Percent per day = 25% Average monthly cost for the product is $33,333 Cost per day is $1,111.00