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HomeMy WebLinkAboutADP, Inc =oOgUfFO(,yC3 RESOLUTION 2024-86 ADOPTED DOC ID: 19899 THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2024-86 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON JANUARY 16, 2024: RESOLVED that the Town Board of the Town of Southold hereby authorizes and directs Supervisor Albert J. Krupski, Jr. to execute a Web Services Agreement with ADP. Inc. in connection with Payroll in the amount of$6,500 for implementation and one time setup fees, $27,396.00 annually for Workforce payroll solutions, and year end forms, W2s or 1099s, and $3,728.00 annually for Fishers Island Employees Workforce payroll solutions, and year end forms, W2s or 1099s, for an Estimated Annual Net Investment of$31,124.00 funded from account line A.1310.4.500.150 all in accordance with the approval of the Town Attorney. Denis Noncarrow Southold Town Clerk RESULT: ADOPTED [UNANIMOUS] MOVER: Greg Doroski, Councilman SECONDER:Brian O. Mealy, Councilman AYES: Doroski, Mealy, Smith, Krupski Jr, Doherty, Evans JAN 2 0 2024 Southold T® � wn Clerk Office of the Town Attorney Town of Southold Town Hall Annex, 54375 Route 25 P.O. Box 1179 Southold, New York 11971-0959 Telephone : 631-765-1939 Facsimile: 631-765-6639 MEMORANDUM To: Denis Noncarrow, Town Clerk From: Missy Mirabelli Secretary to the Town Attorney Date: January 19, 2024 Subject: ADP Inc — Electronic Payroll Services With respect to the above-referenced matter, I am enclosing the original Agreement together with the Resolution. If you have any questions regarding the enclosed, please do not hesitate to call me. Thank you. /mm Enclosures cc: Accounting -C GLOBAL MASTER SERVICES AGREEMENT Effective Date: ; 20_ As between: ADP, INC. -and- Town Of Southold (Referred to in this agreement as"ADP") (Referred to in this agreement as"Client") One ADP Boulevard 53095 Route 25 Roseland, NJ 07068 Southold, NY 11971-4642 ADP and Client agree that ADP shall provide Client with the following services in accordance with the terms set forth in this Global Master Services Agreement and the applicable Sales Order(as defined herein): •ADP Payroll Services—delivered via ADP Workforce Now •ADP Marketplace •Employment Verification Services •ESS&MSS Technology •History Conversion Services ADP,INC. Town Of Southold Signature of Authoriz presen tive Signature of Au harized jRepresbntatl).ve1 Name-Please Print Name.-Please Print J Chris Russo M Title Major Accounts District Manager Title Notwithstanding any Investment Summary that may precede this Global Master Services Agreement and the page numbering below,this signature page is the first page of the Global Master Services Agreement and the Investment Summary that precedes it is for illustration purposes only and shall not become part of the Global Master Services Agreement. Appendices • Appendix:History Conversion Services • Appendix:Data Privacy PROPRIETARY AND CONFIDENTIAL TO ADP, INC. Page 2 GLOBAL MASTER SERVICES AGREEMENT Effective Date: 120 As between: ADP, INC. -and- Town Of Southold (Referred to in this agreement as"ADP") (Referred to in this agreement as"Client") One ADP Boulevard 53095 Route 25 Roseland, NJ 07068 Southold, NY 11971-4642 ADP and Client agree that ADP shall provide Client with the following services in accordance with the terms set forth in this Global Master Services Agreement and the applicable Sales Order(as defined herein): •ADP Payroll Services—delivered via ADP Workforce Now •ADP Marketplace •Employment Verification Services •ESS&MSS Technology •History Conversion Services ADP,INC. Town Of Southold Signature of Authorized Representative Signature of Authorized Representative l41�er�' �• ��ry io.1 ��� �r- Name-Please Print Name.-Please Print J 0 U R-R)1�0�1 Title Title Notwithstanding any Investment Summary that may precede this Global Master Services Agreement and the page numbering below,this signature page is the first page of the Global Master Services Agreement and the Investment Summary that precedes it is for illustration purposes only and shall not become part of the Global Master Services Agreement. Appendices • Appendix:History Conversion Services • Appendix:Data Privacy PROPRIETARY AND CONFIDENTIAL TO ADP, INC. Page 2 Global Master Terms and Conditions 1 Definitions 1.1 ADP HCM Services.Only those Services, as defined below,that have been purchased by Client(as listed on the cover page, a Sales Order or otherwise)will be applicable. 1.1.1 ADP Marketplace. Enable Client to build applications and/or purchase available applications via online store. Provide access to certain Client data stored in ADP systems via industry-standard Application Programming Interfaces(APIs). 1.1.2 ADP Payroll Services. Administration and processing of payroll including performing gross-to-net calculations and generating and/or transmitting of payment instructions, and also including: 1.1.2.1 ADP Employment Tax Services. Coordination of payroll-related tax and/or regulatory agency deposits, filings and reconciliations on behalf of employers. 1.1.2.2 ADP Wage Garnishment Payment Services. Garnishment payment processing and disbursement of payments to appropriate Payees as directed by Client. 1.1.2.3 ADP Wage Payment Services. Payment of wages, commissions, consulting fees, or similar compensation or work-related expenses in the employment context to employees and independent contractors via direct deposit, check or payroll debit cards,in each case only to the extent applicable. 1.1.2.4 Print and Online Statement Services. Print and distribution of payroll checks, pay statements, and/or year-end statements, as well as online posting of pay statements and/or year-end statements. 1.1.2.5 State Unemployment Insurance (SUI) Management Services. ADP becomes the unemployment insurance address of record. ADP requests the state to send unemployment insurance claims, charges, tax rates and related information to ADP and Client receives a quarterly summary of all claims. 1.1.3 ADP Workforce Now. ADP's web-based portal which provides a single point of access to ADP online solutions and employee-facing websites and resources related to payroll, HR,benefits,talent, and time and attendance. 1.1.4 Employment Verification Services.Management of employment and income verification requests. 1.1.5 ESS & MSS Technology. Employee self-service (ESS) and Manager self-service (MSS) functionality provides all Client Users(practitioners, managers and employees)24x7 online access to ADP Application Programs. 1.1.6 History Conversion Services. Conversion and loading of certain Client historical payroll or other human capital management data elements into ADP's systems or a standalone history viewer,as applicable. 1.2 General 1.2.1 "ADP"has the meaning set forth on the cover page. 1.2.2 "ADP Application Programs" means the computer software programs and related Documentation, including any updates, modifications or enhancements thereto, that are either delivered or made accessible to Client through a hosted environment by ADP in connection with the Services. 1.2.3 "ADPCheck"means checks printed and distributed by ADP to Payees pursuant to Client's direction. 1.2.4 "ADPCheck Services" refers to ADP's payment of Client's Payees for Permitted Payments through ADPCheck. 1.2.5 "ADP Direct Deposit Services" means ADP's full service direct deposit services which includes ADP's payment of Client's Payees who have elected to receive Permitted Payments by direct deposit into an account at a financial institution of such Payee's selection. 1.2.6 "Affiliate" means, with respect to any entity, any other entity that controls, is controlled by or under control with such first entity. For purposes of this Agreement, "control"(or variants of it) means the ability,whether directly or indirectly, to direct the management and corporate policies and actions of an entity by means of ownership, contract or otherwise. Client's Affiliates do not include third parties for whom Client is a service provider or provides outsourcing services. 1.2.7 "Agreement" means this Global Master Services Agreement, consisting of the signature pages, the Global Master Terms and Conditions, all exhibits, annexes, appendices,addenda and schedules, and each Amendment, if any. 1.2.8 "Amendment" means a written amendment to this Agreement modifying, supplementing or amending the terms and conditions of this Agreement. 1.2.9 "API"means application programming interface. 1.2.10 "Approved Country" means each country in which, subject to the terms of this Agreement, Client is authorized to use or receive the Services. The following is the list of Approved Countries for the Services: United States. 1.2.11 "Business Day" means any day, except a Saturday, Sunday or a day on which ADP's bank is not open for business in the applicable jurisdiction where services are provided by ADP. PROPRIETARY AND CONFIDENTIAL TO ADP, INC. Page 3 1.2.12 "Cardholder" means the Payees of Client who receive a Pay Card. 1.2.13 "Client" has the meaning set forth on the cover page. 1.2.14 "Client Content"means all information and materials provided by Client, its agents or employees, regardless of form. 1.2.15 "Client Group"means Client and Client's Affiliates listed in the Sales Order who are authorized to receive the Services. 1.2.16 "Client Infringement Event" means (i) any change or enhancement in, or use of, the Services by Client or a third party on Client's behalf other than at the direction of, or as approved by, ADP or(ii) Client's failure to use the most current release or version of any computer software programs included in the ADP Application Programs or any corrections or enhancements provided by ADP thereto (to the extent ADP requires Client to use the most current release or version of any computer software programs,the implementation of such shall be at no charge to Client). 1.2.17 "Confidential Information" means all trade secrets, processes, proprietary data and documentation and any pricing and product information, Personal Data,the terms of this Agreement, and any other information that is confidential or proprietary provided by the disclosing party to the receiving party for use in connection with the Services or this Agreement, but does not include information that (i) the receiving party already knows prior to its disclosure by the disclosing parry, (ii) becomes generally available to the public, except as a result of disclosure by the receiving party in violation of this Agreement or (iii) becomes known to the receiving parry on a non-confidential basis from a source other than the disclosing party. 1.2.18 "Data Security Breach" means a security breach as defined by applicable law or any incident that compromises the confidentiality,integrity, or availability of Personal Data. 1.2.19 "Documentation" means all manuals, tutorials and related materials that may be provided or made available to Client by ADP in connection with the Services. 1.2.20 "Effective Date"has the meaning set forth on the cover page. 1.2.21 "FCRA"means the Fair Credit Reporting Act, 15 U.S.C.§1681 et seq. 1.2.22 "Global Master Terms and Conditions" means the terms and conditions contained in the main body of this document following the signature pages. 1.2.23 "Go-Live Date"means the date of commencement of the first live processing of any given Service. 1.2.24 "Implementation Services"means the Services to be performed in order to commence ongoing Services. 1.2.25 "Improvements" has the meaning set forth in Section 5.4. 1.2.26 "Indemnitee"has the meaning set forth in Section 6.3. 1.2.27 "Indemnitor"has the meaning set forth in Section 6.3. 1.2.28 "Intellectual Property Rights" means all rights, title and interest to or in patent, copyright, trademark, service mark, trade secret, business or trade name, know-how and rights of a similar or corresponding character. 1.2.29 "Internal Business Purposes" means the usage of the Services, including the ADP Application Programs, exclusively by the Client Group for its own internal business purposes, without the right to provide service bureau or other data processing services,or otherwise share or distribute the Services. 1.2.30 "NACHA"means the National Automated Clearing House Association. 1.2.31 "Notice to Furnishers" means with respect to Employment Verification Services, the notice provided to a furnisher of information pursuant to the Obligations of Furnishers of Information provided at the following URL: https: www.consumer.ftc.gov/articles/pdf-0092-notice-to-furnishers.pdf. 1.2.32 "Payee" means any intended recipient of payments under the Payment Services and may include Client's employees,taxing authorities, governmental agencies, suppliers, benefit carriers and/or other third parties; provided that in the case of ADP Wage Payment Services, Payee shall be limited to Client's employees and independent contractors. 1.2.33 Payment Services" means Services that involve electronic or check payments being made by ADP to third parties on Client's behalf and at its direction. 1.2.34 "Permitted Payment" means the legal payment of wages, commissions, consulting fees or similar compensation or work- related expenses in the employment context. 1.2.35 "Personal Data" means any information relating to an identified or identifiable natural person. An identifiable person is one who can be identified, directly or indirectly, in particular by reference to an identification number or to one or more factors specific to such person's physical, physiological, mental,economic, cultural or social identity. 1.2.36 "Sales Order(s)"means the document(s) between the parties that lists the specific Services purchased by Client Group from ADP. PROPRIETARY AND CONFIDENTIAL TO ADP, INC. Page 4 1.2.37 "Services" means the services listed on the cover page of this Agreement (including Implementation Services related thereto and ADP Application Programs), and such other services as the parties may agree to be performed from time to time. 1.2.38 "SOC 1 Reports" has the meaning set forth in Section 9.1. 1.2.39 "Term" means the period beginning as of the Effective Date and ending upon termination of the Agreement. 1.2.40 "Termination Event" means with respect to any party, the occurrence of any of the following: (i) under the applicable bankruptcy laws or similar law regarding insolvency or relief for debtors, (A) a trustee, receiver, custodian or similar officer is appointed for a parry's business or property, (B) a parry seeks to liquidate, wind-up, dissolve, reorganize or otherwise obtain relief from its creditors, or (C) an involuntary proceeding is commenced against a parry and the proceeding is not stayed, discharged or dismissed within thirty(30)days of its commencement, or(ii)a party's Standard and Poor's issuer credit rating falls to or below BB. 1.2.41 "Unauthorized Third Party" means any commercial third party or business that seeks to access or accesses ADP Application Programs using the account credentials(e.g., username and password)of a User even if such User has provided consent. 1.2.42 "User" means any single natural person who, subject to the terms of this Agreement, is an employee or independent contractor of Client authorized by Client to use, access or receive the Services. 1.2.43 "Verification Agent" means ADP and its subcontractors, as authorized by the Client, to perform Employment Verification Services. 1.2.44 "Verification Data" means employment and income information disclosed on the Client's behalf in connection with Employment Verification Services. 1.2.45 "Verifiers" means commercial, private, non-profit and government entities and their agents that wish to obtain or verify any Client's employees or former employees Verification Data in connection with Employment Verification Services. 2 Provision and Use of Services 2.1 Provision of Services. ADP, or one of its Affiliates, will provide the Services to Client Group in accordance with the terms of this Agreement. ADP will provide the Services in a good, diligent and professional manner in accordance with industry standards, utilizing personnel with a level of skill commensurate with the Services to be performed.ADP's performance of the Services(including any applicable implementation activities) is dependent upon the timely completion of Client's responsibilities and obligations under this Agreement. Without limitation of the foregoing, Client will timely provide the Client Content necessary for ADP to provide the Services. 2.2 Cooperation. ADP and Client will work together to implement the Services. Client will cooperate with ADP and execute and deliver all documents, forms, or instruments necessary for ADP to implement and render the Services. Client will provide ADP with all reasonable and necessary Client Content in the format requested by ADP, and will otherwise provide all reasonable assistance required of Client in order for ADP to successfully implement the Services. 2.3 Use of Services. Client will use the Services in accordance with the terms of this Agreement and solely for its own Internal Business Purposes. Client will be responsible for the use of the Services by the Client Group and the Users in accordance with the terms of this Agreement. Client understands and agrees that only Users are permitted to access and use ADP Application Programs (and that access by Unauthorized Third Parties is not permitted) and will reasonably cooperate with ADP to limit access to such persons. Client is responsible for the accuracy and completeness of the Client Content provided to ADP. The Services are designed for use in the Approved Country only and Client understands that the Services have not been designed to assist Client in complying with the laws and regulations of any country other than the Approved Country. ADP makes no representation or warranty that access and use of the Services from outside the Approved Country by Client employee managers and/or other Users who are not physically located in an Approved Country comport with any local laws, regulations, or directives in any other country. Furthermore, if Client during the implementation process or as part of the ongoing Services configures the ADP Application Programs to process additional data elements beyond those data elements that are required by ADP to perform the Services, Client will remain solely responsible for such configurations, including the processing of Personal Data pursuant to applicable law. 2.4 Errors. Client will promptly review all documents and reports produced by ADP and provided or made available to Client in connection with the Services and promptly notify ADP of any error, omission, or discrepancy with Client's records. ADP will promptly correct such error, omission or discrepancy and, if such error, omission or discrepancy was caused by ADP,then such correction will be done at no additional charge to Client. 2.5 Records. Unless expressly included as a part of the Services, and without prejudice to ADP's obligation to retain the data necessary for the provision of the Services, ADP does not serve as Client's record keeper and Client will be responsible for retaining copies of all documentation received from or provided to ADP in connection with the Services to the extent required by law or Client's internal policies. 3 Compliance 3.1 Applicable Laws. Each party will comply with laws and regulations that affect its business generally, including any applicable anti- bribery, export control,computer fraud and data protection laws. PROPRIETARY AND CONFIDENTIAL TO ADP, INC. Page 5 3.2 Design of the Services. ADP will design the Services, including the functions and processes applicable to ADP's performance of the Services, to assist the Client in complying with its legal and regulatory requirements applicable to the Services, and ADP will be responsible for the accuracy of such design. Client and not ADP will be responsible for(i)how it uses the Services to comply with its legal and regulatory requirements and (ii) the consequences of any instructions that it gives to ADP, including as part of the implementation of the Services, provided ADP follows such instructions. Services do not include any legal, financial, regulatory, benefits,accounting or tax advice. 3.3 Online Statements. If Client instructs ADP to provide online pay statements, Forms W2, Forms 1099, or Forms 1095-C without physical copies thereof, Client will be exclusively responsible for determining if and to what extent Client's use of online pay statements, Forms W2, Forms 1099, or Forms 1095-C satisfies Client's obligations under applicable laws and the consequences resulting from such determinations. 3.4 Data Protection Laws. During the Term of the Agreement(i) Personal Data transferred by Client or at Client's direction to ADP has been collected by Client in accordance with applicable privacy laws; and (ii)Client has the authority to provide such Personal Data to ADP under applicable privacy laws. ADP may not retain, sell (as defined by applicable privacy laws), use or disclose the Personal Data for any purpose other than as needed to perform the Services,as permitted by the Agreement,or as required by law. 4 Confidentiality 4.1 General. All Confidential Information disclosed under this Agreement will remain the exclusive and confidential property of the disclosing party. The receiving party will not disclose to any third party the Confidential Information of the disclosing parry and will use at least the same degree of care, discretion and diligence in protecting the Confidential Information of the disclosing parry as it uses with respect to its own confidential information. The receiving parry will limit access to Confidential Information to its employees and independent contractors with a need to know the Confidential Information and will instruct those employees and independent contractors to keep such information confidential. ADP may disclose Client's Confidential Information on a need to know basis to (i)ADP's subcontractors who are performing the Services, provided that ADP shall remain liable for any unauthorized disclosure of Client's Confidential Information by those subcontractors, (ii) employees of ADP's Affiliates, provided such employees are instructed to keep the information confidential as set forth in this Agreement and (iii)social security agencies,tax authorities and similar third parties, to the extent strictly necessary to perform the Services. ADP may use Client's and its employees' and other Services recipients'information in an aggregated, anonymized form,such that neither Client nor such person may be identified, and Client will have no ownership interest in such aggregated, anonymized data. Client authorizes ADP to release employee-related data, and such other data as required to perform the Services, to third party vendors of Client as designated by Client from time to time. Notwithstanding the foregoing, the receiving party may disclose Confidential Information (x)to the extent necessary to comply with any law, rule, regulation or ruling applicable to it, (y) as appropriate to respond to any summons or subpoena or in connection with any litigation and (z)to the extent necessary to enforce its rights under this Agreement. 4.2 Return or Destruction. Upon the request of the disclosing parry or upon the expiration or earlier termination of this Agreement, and to the extent feasible,the receiving party will return or destroy all Confidential Information of the disclosing parry in the possession of the receiving party, provided that each parry may maintain a copy if required to meet its legal or regulatory obligations and may maintain archival copies stored in accordance with regular computer back-up operations. To the extent that any portion of Confidential Information of a disclosing party remains in the possession of the receiving parry following expiration or earlier termination of this Agreement, such Confidential Information shall remain subject to the generally applicable statutory requirements and the confidentiality protections contained in Section 4.1. 5 Intellectual Property 5.1 Client IP Rights. Except for the rights expressly granted to ADP in this Agreement, all rights, title and interests in and to Client Content, including all Intellectual Property Rights inherent therein and pertaining thereto, are owned exclusively by Client or its licensors. Client hereby grants to ADP for the Term a non-exclusive, worldwide, non-transferable, royalty-free license to use, edit, modify, adapt, translate, exhibit, publish, reproduce, copy and display the Client Content for the sole purpose of performing the Services;provided Client has the right to pre-approve the use by ADP of any Client trademarks or service marks. 5.2 ADP IP Rights. Except for the rights expressly granted to Client in this Agreement, all rights, title and interest in and to the Services, including all Intellectual Property Rights inherent therein and pertaining thereto, are owned exclusively by ADP or its licensors. ADP grants to Client for the Term a personal, non-exclusive, non-transferable, royalty-free license to use and access the ADP Application Programs solely for the Internal Business Purposes in the Approved Countries and solely up to the maximum number of Users (if any) indicated in the Sales Order. The ADP Application Programs do not include any Client-specific customizations unless otherwise agreed in writing by the parties. Client will not obscure, alter or remove any copyright, trademark, service mark or proprietary rights notices on any materials provided by ADP in connection with the Services, and will not copy, recompile, disassemble, reverse engineer, or make or distribute any other form of, or any derivative work from,such ADP materials. 5.3 Ownership of Reports. Client will retain ownership of the content of reports and other materials that include Client Content produced and delivered by ADP as a part of the Services, provided that ADP will be the owner of the format of such reports. To the extent any such reports or other materials incorporate any ADP proprietary information, ADP (i) retains sole ownership of such proprietary information and (ii)provides the Client a fully paid up, irrevocable, perpetual, royalty-free license to access and use same for its Internal Business Purposes without the right to create derivative works (other than derivative works to be used solely for its Internal Business Purposes)or to further distribute any of the foregoing rights outside the Client Group. 5.4 Improvements. ADP will make available to Client, at no additional cost, software improvements, enhancements, or updates to any ADP Application Programs that are included in the Services (collectively "Improvements") if and as they are made generally available by ADP at no additional cost to ADP's other clients using the same ADP Application Programs as Client and receiving the same Services as Client. All Improvements provided under this Section 5.4 shall be considered part of the ADP Application Programs. If Client fails to implement Improvements provided or made available to Client by ADP, ADP shall be relieved of any responsibility for errors or degradation in the Services and shall have no obligation to provide support for the ADP Application Programs. PROPRIETARY AND CONFIDENTIAL TO ADP, INC. Page 6 6 Indemnities 6.1 ADP Indemnity. Subject to the remainder of this Section 6.1, and Sections 6.3 and 7,ADP will defend Client against any third parry claims and will indemnify and hold Client harmless from any resulting damage awards or settlement amounts in any cause of action to the extent such cause of action is based on a claim alleging that the Services or ADP Application Programs, as provided by ADP and used in accordance with the terms of this Agreement, infringe upon any Intellectual Property Rights of a third party in the United States. The foregoing infringement indemnity will not apply and ADP will not be liable for any damages assessed in any cause of action to the extent resulting from a Client Infringement Event or ADP's use of Client Content as contemplated by this Agreement. If any Service is held or believed to infringe on any third-party's Intellectual Property Rights, ADP may, in its sole discretion, (i) modify the Service to be non-infringing, (ii)obtain a license to continue using such Service, or(iii)if neither(i)nor(ii)are practical,terminate this Agreement as to the infringing Service and return to Client any unearned fees prepaid by Client to ADP. 6.2 Client Indemnity. Subject to Sections 6.3 and 7, Client will defend ADP against any third party claims and will indemnify and hold ADP harmless from any resulting damage awards or settlement amounts in any cause of action to the extent such cause of action is based on the occurrence of a Client Infringement Event or ADP's use of Client Content as contemplated by this Agreement. 6.3 Indemnity Conditions. The indemnities set forth in this Agreement are conditioned on the following: (i) the party claiming indemnification (the "Indemnitee") shall promptly notify the indemnifying party (the "Indemnitor") of any matters in respect of which it seeks to be indemnified, and shall give the Indemnitor full cooperation and opportunity to control the response thereto and the defense thereof, including without limitation any settlement thereof, (ii) the Indemnitor shall have no obligation for any claim under this Agreement if the Indemnitee makes any admission, settlement or other communication regarding such claim without the prior written consent of the Indemnitor, which consent shall not be unreasonably withheld, and (iii) the Indemnitee's failure to promptly give notice to the Indemnitor shall affect the Indemnitor's obligation to indemnify the Indemnitee only to the extent the Indemnitor's rights are materially prejudiced by such failure. The Indemnitee may participate, at its own expense, in such defense and in any settlement discussions directly or through counsel of its choice. 7 Limit on Liability 7.1 Ordinary Cap. Notwithstanding anything to the contrary in this Agreement and subject to the remainder of this Section 7, neither parry's aggregate liability in any calendar year shall exceed an amount equal to six (6) times the average ongoing monthly Services fees paid or payable to ADP by Client during such calendar year for all Services(the"Ordinary Cap"). 7.2 Extraordinary Cap. As an exception to Section 7.1, if damages arise from a breach of Section 4 (Confidentiality), Section 9.3 (Data Security) or Section 9.4 (Unauthorized Third Party Access), the Ordinary Cap will be increased by an additional six (6) times the average ongoing monthly Services fees paid or payable to ADP by Client during such calendar year for all Services (the "Extraordinary Cap"). For the avoidance of doubt, in no case shall either party's aggregate liability in any calendar year under this Agreement exceed an amount equal to twelve (12) times the average monthly ongoing Services fees paid or payable to ADP by Client during such calendar year for all Services. 7.3 Matters not Subject to the Cap.The foregoing limits on liability shall not apply to the following: 7.3.1 Client's funding obligations in connection with the Payment Services; 7.3.2 Loss or misdirection of Client funds in possession or control of ADP due to ADP's error or omission; 7.3.3 In connection with the ADP Employment Tax Services, (i)interest charges imposed by an applicable tax authority on Client for the failure by ADP to pay funds to the extent and for the period that such funds were held by ADP and (ii) all tax penalties resulting from ADP's error or omission in the performance of such Service. The provisions of this Section 7.3.3 shall only apply if (x) Client permits ADP to act on Client's behalf in any communications and negotiations with the applicable taxing authority that is seeking to impose any such penalties or interest and (y)Client assists ADP as reasonably required by ADP; 7.3.4 Either parry's gross negligence, or willful, criminal or fraudulent misconduct; 7.3.5 The infringement indemnity set forth in Section 6.1 and 6.2; 7.3.6 Client's obligations to pay the fees for Services; and 7.3.7 ADP's obligations to provide credit monitoring as set forth in Section 10.2. 7.4 Mitigation of Damages. ADP and Client will each use reasonable efforts to mitigate any potential damages or other adverse consequences arising from or related to the Services. 7.5 No Consequential Damages. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT AND ONLY TO THE EXTENT PERMITTED BY APPLICABLE LAW, NONE OF ADP, CLIENT OR ANY BANK WILL BE RESPONSIBLE FOR SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR OTHER SIMILAR DAMAGES (INCLUDING DAMAGES FOR LOSS OF BUSINESS OR PROFITS, BUSINESS INTERRUPTIONS OR HARM TO REPUTATION) THAT ANY OTHER PARTY OR ITS RESPECTIVE AFFILIATES MAY INCUR OR EXPERIENCE IN CONNECTION WITH THIS AGREEMENT OR THE SERVICES, HOWEVER CAUSED AND UNDER WHATEVER THEORY OF LIABILITY, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.The foregoing exclusion shall not apply to claims for consequential damages arising from (i)ADP's or Client's gross negligence or willful, criminal or fraudulent misconduct, (ii) Client or Client's Users sharing or allowing access to a User's password, User ID, or other form of user authentication, or (iii) ADP's or Client's breach or breaches of Section 4.1 or Section 9.3 under this Agreement; provided however, that any consequential damages recovered by Client or ADP in a calendar year for claims pursuant to Sections 7.5(ii)and 7.5(iii)will be subject to the Extraordinary Cap set forth in Section 7.2 above. PROPRIETARY AND CONFIDENTIAL TO ADP, INC. Page 7 8 Warranties and Disclaimer 8.1 Warranties. Each party warrants that (i) it has full corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby and (ii) this Agreement has been duly and validly executed and delivered and constitutes the valid and binding agreement of the parties, enforceable in accordance with its terms. 8.2 DISCLAIMER. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, ALL SERVICES, ADP APPLICATION PROGRAMS AND EQUIPMENT PROVIDED BY ADP OR ITS SUPPLIERS ARE PROVIDED "AS IS" AND ADP AND ITS LICENSORS AND SUPPLIERS EXPRESSLY DISCLAIM ANY WARRANTY, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, NON-INTERRUPTION OF USE, AND FREEDOM FROM PROGRAM ERRORS, VIRUSES OR ANY OTHER MALICIOUS CODE, WITH RESPECT TO THE SERVICES,THE ADP APPLICATION PROGRAMS,ANY CUSTOM PROGRAMS CREATED BY ADP OR ANY THIRD-PARTY SOFTWARE DELIVERED BY ADP AND RESULTS OBTAINED THROUGH THE USE THEREOF. 9 Security and Controls 9.1 Service Organization Control Reports. Following completion of implementation of any applicable Services, ADP will, at Client's request and at no charge, provide Client with copies of any routine Service Organization Control 1 reports ("SOC 1 Reports") (or any successor reports thereto)that are both directly related to those Services provided hereunder for Client and already released to ADP by the public accounting firm producing the report. SOC 1 Reports are ADP Confidential Information and Client will not distribute or allow any third party (other than its independent auditors) to use any such report without the prior written consent of ADP. Client will instruct its independent auditors or other approved third parties to keep such report confidential and Client will remain liable for any unauthorized disclosure of such report by its independent auditors or other approved third parties. 9.2 Business Continuity; Disaster Recovery. ADP maintains a commercially reasonable business continuity and disaster recovery plan and will follow such plan. 9.3 Data Security. ADP has an established information security program containing appropriate administrative, technical and physical measures to protect Client data (including Personal Data) against accidental unlawful or unauthorized destruction, alteration, unauthorized disclosure or access consistent with applicable laws. In the event ADP suspects any unauthorized access to, or use of, the Services and ADP Application Programs, ADP may suspend access to the Services to the extent ADP deems necessary to preserve the security of ADP, Client or User data. 9.4 Unauthorized Third Party Access. Client and its Users are responsible for maintaining the security and confidentiality of any password, User ID, or other form of user authentication involved in obtaining access to ADP Application Programs, and Client and its Users shall not disclose any confidential account access credentials or related information to Unauthorized Third Parties. 10 Data Security Breach 10.1 Notification. If ADP becomes aware of a Data Security Breach of Client's Personal Data, ADP will take appropriate actions to contain, investigate and mitigate the Data Security Breach. ADP shall notify Client without undue delay after becoming aware that a Data Security Breach has occurred, unless otherwise required or instructed by law enforcement or regulatory authority. ADP will share information in its possession with Client for Client to determine any regulatory reporting obligations required by applicable law. 10.2 Other ADP Obligations. In the event that a Data Security Breach is the result of the failure of ADP to comply with the terms of this Agreement, ADP shall, to the extent legally required or otherwise necessary to notify the individuals of potential harm, bear the actual, reasonable costs of notifying affected individuals. ADP and Client shall mutually agree on the content and timing of any such notifications, in good faith and as needed to meet applicable legal requirements. In addition, where notifications are required, and where such monitoring is practicable and customary, ADP shall also bear the cost of one year of credit monitoring to affected individuals in the applicable jurisdictions. 11 Payment Terms 11.1 Fees and Fee Adjustments.Client shall pay to ADP the fees and other charges for the Services as set forth in the Sales Order.The recurring Services fees (excluding delivery, tax and banking (including reverse wire), jurisdiction, year-end and maintenance fees) will remain fixed during the first six (6) months following the Effective Date, and thereafter ADP may modify the fees on an annual basis upon thirty (30) days' prior written notice to Client. The fees presented in any Sales Order were calculated based upon particular assumptions relative to Client requirements (including funding requirements), specifications, volumes and quantities as reflected in the applicable Sales Order and related documentation, and if Client's actual requirements vary from what is stated,ADP may adjust the fees based on such changes.The fees do not include any customizations to any Service. 11.2 Additional Services and Charges.Any Services provided to Client but not included in a Sales Order will be provided subject to the terms of this Agreement and charged at the applicable rates as they occur; and those services will be considered to be"Services"for purposes of this Agreement. Additional charges may be assessed Client in relation to the performance of the Services in certain circumstances, including without limitation, late funding, an insufficient funds notification and emergency payment requests from Client. 11.3 Fees for Implementation Services. Implementation fees are due and payable by Client upon the Go-Live Date for such Services. However, if(i)this Agreement or any Service is terminated after Implementation Services have started but before the applicable Go- Live Date or (ii) Client fails to reasonably cooperate with ADP in connection with the Implementation Services such that ADP is unable to complete such Implementation Services, then ADP may terminate this Agreement or any Service upon written notice to Client and, in each case, thirty percent (30%) of the total non-discounted implementation fees set forth in the Sales Order shall be immediately due and payable by Client. PROPRIETARY AND CONFIDENTIAL TO ADP, INC. Page 8 11.4 Invoicing.ADP will notify Client of all applicable Services fees payable by Client by way of invoice or other method (i.e. ADP's on- line reporting tool). Client will pay the amount on each invoice or such other similar document in full pursuant to the agreed upon method of payment set forth in the Sales Order. All amounts not paid when due are subject to a late payment charge of one and one-half percent(1.5%)per month (not to exceed the maximum allowed by applicable law)of the past due amount from the due date until the date paid. If applicable, ADP shall invoice Client for any History Conversion Services fees upon the completion of the Services, unless the History Conversion Services will be provided over a time period which exceeds thirty (30) days, in which case ADP reserves the right to invoice the Client on a monthly basis for such Services rendered. 11.5 Currency.Client shall pay the fees in US dollars. 11.6 Taxes. Unless Client provides ADP a valid tax exemption or direct pay certificate, Client will pay directly, or will pay to ADP, an amount equal to all applicable taxes or similar fees levied or based on the Agreement or the Services, exclusive of taxes based on ADP's net income. 11.7 Postage, Shipping, Travel and Out-of-Pocket Expenses. ADP will invoice Client for postage charges, delivery charges, other third party charges, reasonable preapproved travel expenses, and travel-related out-of-pocket expenses, as necessary to provide the Services. 11.8 Funding Requirements and Disbursement Disclosures. With respect to Payment Services to be deducted by ACH or Pre- Authorized Debit, Client must have sufficient good funds for payment of the payroll obligations, tax filing obligations, wage garnishment deduction obligations, service fees (as applicable), expenses, and any other applicable charges, to be direct debited from Client's designated account no later than one (1) Business Day prior to the pay date for the applicable payroll (in the case of payroll processing services), or as otherwise agreed by the parties. For reverse wire clients, funds must be available (a) by 6:00 a.m. Pacific time on the Business Day immediately before the associated payroll check date (in the case of the ADP Employment Tax Services) and (b) by 6:00 a.m. Pacific time two (2) Business Days prior to the associated payroll check date for all other Payment Services. In consideration for the additional costs incurred by ADP in providing wire transfer service, Client agrees to pay a reasonable fee for each wire transfer. Notwithstanding the foregoing, ADP reserves the right to modify the aforementioned deadlines at any time and will communicate any such modifications to Client. 11.9 Change Control. In the event either party requests a change in the scope of Services (including implementation services) or any rework is required by ADP as a result of a delay by Client in implementation of any Services (each a"Change Control Item"), the parties shall address such change request, if possible via ADP's change control process. Change Control Items and the cost associated with such changes (if any)to the Services shall be mutually agreed to by the parties and shall be defined in a statement of work agreed to by the parties, with the exceptions of Change Control Items that are required to be made by law or regulation applicable to the Services or to the duration of implementation services,which ADP will notify Client of prior to making the change. 12 Term;Termination;Suspension 12.1 Term;Termination for Convenience.This Agreement will commence on the Effective Date and remain in effect until terminated by either parry in accordance with the terms hereof. Either party may terminate this Agreement or any Service upon ninety (90) days' prior written notice to the other parry(except as otherwise set forth in this Section 12). 12,2 Termination for Cause. Either party may terminate this Agreement for the other's material breach of this Agreement if such breach is not cured within sixty(60)days following notice thereof or in the event either parry is the subject of a Termination Event. In addition, ADP may terminate this Agreement in the event Client fails to timely pay fees for Services performed within ten (10) days following notice that such fees are past due. ADP may also terminate this Agreement or the Services immediately on written notice to Client if the provision of Service to Client causes or will cause ADP or its Affiliates to be in violation of any laws, rules or regulations applicable to it including any sanction laws applicable to ADP or any Affiliate. 12.3 Suspension. Without limiting the foregoing,the parties agree that Payment Services involve credit risk to ADP. Payment Services may be suspended by ADP (A) immediately following notice to Client(i)that Client has failed to remit sufficient, good and available funds within the deadline and via the method of delivery agreed upon as it relates to the applicable Payment Services, or(ii) if Client breaches any rules promulgated by the NACHA (or other similar local regulator) as it relates to ADP conducting ACH (or similar electronic payment)transactions on behalf of Client, and (B)with 24 hour notice if: (i)a bank notifies ADP that it is no longer willing to originate debits from Client's account(s)or credits for Client's behalf for any reason or(ii)the authorization to debit Client's account is terminated or ADP reasonably believes that there is or has been fraudulent activity on the account. If the Payment Services are terminated or suspended pursuant to Sections 12.2 or 12.3, Client acknowledges that ADP shall be entitled to allocate any funds in ADP's possession that have been previously remitted or otherwise made available by Client to ADP relative to the Payment Services in such priorities as ADP may determine appropriate, including reimbursing ADP for payments made by ADP on Client's behalf to a third party. If the Payment Services are terminated by ADP, Client understands that it will (x) immediately become solely responsible for all of Client's third parry payment obligations covered by the Payment Services then or thereafter due (including,without limitation, for ADP Employment Tax Services, any and all penalties and interest accruing after the date of such termination, other than penalties and interest for which ADP is responsible under Section 7.3.3), and (y) reimburse ADP for all payments properly made by ADP on behalf of Client to any Payee,which has not been paid or reimbursed by Client. If the Payment Services remains suspended for 30 days,the affected Payment Service shall be deemed terminated on the 31st day following suspension. 12.4 Additional Termination Provisions. 12.4.1 Additional Termination Provisions for ADP Employment Tax Services. If the ADP Employment Tax Services in the United States are terminated, Client's access to ADP websites containing Client's data will expire 90 days from the effective date of the termination, and Client will be responsible for downloading all relevant data, including Statements of Deposit (SODs)prior to the expiration of such access. 12.4.2 Additional Termination Provisions for Employment Verification Services. ADP may, in its sole discretion, terminate the Employment Verification Services at any time upon 90 days prior written notice to Client should a Verification Agent notify ADP that it is no longer willing to provide the Employment Verification Services and ADP, after taking commercially reasonable steps, cannot engage a successor Verification Agent. PROPRIETARY AND CONFIDENTIAL TO ADP, INC. Page 9 12.4.3 Additional Termination Provisions for History Conversion Services. Either party can terminate History Conversion Services at any time for any reason by providing at least ten (10) days' advance written notification to the other party. Upon termination of the History Conversion Services by either parry for any reason, all fees and expenses for the History Conversion Services incurred by Client prior to the termination date shall become immediately due and payable. 13 Post Termination 13.1 Scope. At any time prior to the termination of Client's access to the ADP Application Programs, Client may download Client's information or reports available to it in conjunction with all of the Services provided to Client by ADP. Under no circumstances will ADP be required to provide any third party with access to the ADP Application Programs, ADP's intellectual property or any Confidential Information of ADP. 13.2 Past Due Amounts. If ADP has terminated this Agreement due to Client's failure to pay fees,ADP's obligations in Section 13.1 will be subject to Client's payment of all past due amounts and ADP may require Client to prepay for any services. 14 Additional Terms 14.1 ADP Employment Tax Services. The following additional terms and conditions apply to the ADP Employment Tax Services: 14.1.1 Important Tax Information (IRS Disclosure)for U.S. Only. Notwithstanding Client's engagement of ADP to provide the ADP Employment Tax Services in the United States, please be aware that Client remains responsible for the timely filing of payroll tax returns and the timely payment of payroll taxes for its employees. The Internal Revenue Service recommends that employers enroll in the U.S. Treasury Department's Electronic Federal Tax Payment System (EFTPS) to monitor their accounts and ensure that timely tax payments are being made for them, and that online enrollment in EFTPS is available at www.eftps.gov; an enrollment form may also be obtained by calling (800) 555-4477;that state tax authorities generally offer similar means to verify tax payments; and that Client may contact appropriate state offices directly for details. 14.2 Payment Services. The following additional terms and conditions apply to the Payment Services: 14.2.1 Client Credentialing. Client understands and acknowledges that the implementation and ongoing provision of Payment Services are conditioned upon Client passing (and continuing to pass) a credentialing process that ADP may deem necessary in connection with the provision of Payment Services. 14.2.2 Additional Requirements. Payment Services may be subject to the rules and standards of any applicable clearing house, payment and/or card networks or associations. Client and ADP each agree to comply with all such rules and standards applicable to it with respect to the Payment Services. 14.2.3 Funding Obligations. Client acknowledges that ADP is not a lender. As such, as a condition to receiving services, Client will remit or otherwise make available to ADP sufficient, good and available funds within the agreed-to deadline and via the agreed-to method of delivery to satisfy all of Client's third-party payment obligations covered by the Agreement. ADP will apply such funds to satisfy such third-party payment obligations. ADP will not be required to provide Payment Services if ADP has not received all funds required to satisfy Client's third-parry payment obligations. Client will immediately notify ADP if it knows or should know that it will not have sufficient funds to satisfy the amounts required in connection with the Payment Services. If Client has a material adverse change in its condition, ADP may modify the funding method or deadline by which funds must be made available to ADP for payment to Payees. Client agrees to pay to ADP upon demand any amounts that have been paid by ADP to satisfy Client's third parry payment obligations prior to receiving such amounts from Client. 14.2.4 Investment Proceeds; Commingling of Client Funds. IF ADP RECEIVES CLIENT'S FUNDS IN ADVANCE OF THE TIME ADP IS REQUIRED TO PAY SUCH FUNDS TO THIRD PARTIES,ALL AMOUNTS EARNED ON SUCH FUNDS, IF ANY, WHILE HELD BY ADP WILL BE FOR THE SOLE ACCOUNT OF ADP. ADP may commingle Client's funds with similar funds from other clients and with similar ADP and ADP-administered funds. ADP utilizes a funds control system that maintains general ledger entries by client and/or by jurisdiction. 14.2.5 Recovery of Funds; Stop Payment Requests. Client agrees to cooperate with ADP and any other third parties to recover funds erroneously issued or transferred to any Payee or credited to any Payee's account. If Client desires to stop payment on any check or to recall or reverse any electronic payment, Client will provide ADP with a stop payment request in the form required by ADP. Client acknowledges that ADP's placement of a stop order request is not a guarantee that such stop payment will occur. 14.3 ADP Wage Payment Services. The following additional terms and conditions apply to ADP Wage Payment Services: 14.3.1 ADPCheck; Direct Deposit. Client agrees not to distribute any ADPChecks to Payees in a manner that would allow Payees to access the associated funds before pay date. Prior to the first credit to the account of any employee or other individual under ADP Direct Deposit Services, Client shall obtain and retain a signed authorization from such employee or individual authorizing the initiation of credits to such parry's account and debits of such account to recover funds credited to such account in error. 14.4 Tax Registration Services. ADP shall provide tax registration services as further described in this Section (the "Tax Registration Services") in accordance with and subject to the terms of this Agreement.The Tax Registration Services provided hereunder relate solely to ADP obtaining jurisdiction account numbers for employment tax as requested by Client. In receiving the Tax Registration Services hereunder, Client acknowledges the following: PROPRIETARY AND CONFIDENTIAL TO ADP, INC. Page 10 14.4.1 Client understands that ADP will not perform Tax Registration Services in connection with the following events: (i) mergers and acquisitions; (ii) name, address or entity (corporate form) changes; (iii) applications to a state's Secretary of State; and (iv)closing of accounts with a state taxing agency. 14.4.2 As a third-party service provider,ADP's Services hereunder are consultative in nature.ADP is not representing Client in any dealings before any tax agencies.ADP's provision of the Tax Registration Services should not be construed as legal,tax, or accounting advice. Client should consult its legal,tax, or accounting advisors for such advice. 14.4.3 All submissions to the taxing jurisdiction will be (i) reviewed by Client prior to submission,when provided and (ii) signed by Client where necessary or Client will instruct ADP to affix electronically the Client signature provided by Client. By signing the documents or requesting that ADP affix Client's electronic signature, Client is confirming that(i) Client has reviewed the documents and/or data being submitted to the taxing jurisdiction and (ii)the information contained therein is complete and accurate. 14.4.4 By utilizing the Tax Registration Services, Client authorizes ADP to act on its behalf in obtaining jurisdiction employment tax account numbers including, but not limited to, affixing the electronic signature provided by Client to registration forms and other documentation,submitting forms to tax agencies and directly communicating with such agencies as necessary. 14.4.5 Client understands that ADP's Services are based solely on the information provided by Client and/or otherwise available for ADP in connection with the Services about Client's business established within a particular jurisdiction and other written correspondence that is in reply to ADP's questions regarding the registration process or otherwise provided by Client. Client authorizes ADP to rely upon such in providing the Tax Registration Services. ADP is not responsible for Tax Registration Services provided hereunder based on any inaccurate information supplied by Client or the failure by Client to provide ADP with information relating to the registration process. 14.4.6 Client understands that, for reasons beyond ADP's reasonable control, ADP may not be successful in securing an employment tax account number for Client in any particular jurisdiction. 14.4.7 ADP is not responsible for any penalties or interest incurred by Client as a result of ADP's failure to timely receive Client's identification numbers. 14.5 State Unemployment Insurance (SUI) Management Services. The following additional terms and conditions apply to the SUI Management Services: 14.5.1 Provision and Transfer of Information. Client will provide ADP with accurate, complete and timely information necessary for ADP to perform the SUI Management Services, including without limitations,the claimants'names, relevant dates,wage and separation information, state-specific required information, and other documentation to support responses to unemployment compensation agencies. Client will transfer this information via (i) on-line connection between ADP and Client's computer system or(ii) inbound data transmissions from Client to ADP, using mutually acceptable communications protocols and delivery methods. Client will promptly notify ADP in writing if Client wishes to modify the communication protocol or delivery method. 14.5.2 Definition of Claim; Claim Cap. For purposes of the SUI Management Services provided under this Agreement and billed to Client, a "claim" shall be defined as a claim notice generated by a state agency as a result of an individual filing for unemployment insurance benefits. In addition, Client acknowledges and agrees that(i)claim notices are typically generated for each state unemployment tax ID number under which an employee had worked and earned wages; (ii) state unemployment agencies generally issue multiple claim notices per individual as identified by a Social Security Number during the benefit eligibility period upon receiving a request for unemployment benefits; and (iii) all such claim notices require review ADP (e.g., including but not limited to, last employer claims, base period employer claims, periodic qualification claims, additional benefit claims, renewed claims and extended benefit claims). Client further acknowledges and agrees that an applicable claim cap applies to the fees for SUI Management Services and that the claim cap shall be stated on the Sales Order, and will be based on all claim notices processed by ADP as a result of an individual filing for unemployment benefits. The number of claims counted for billing purposes will be reported to Client by ADP as "Claims Processed"via on-line reports. 14.6 ADP Wage Garnishment Payment Services. The following additional terms and conditions apply to the ADP Wage Garnishment Payment Services: 14.6.1 Description of Services. ADP will act solely in the capacity of a third parry service provider of payment processing. 14.6.2 Client's Use of Services. Client agrees not to distribute any ADPChecks to Payees in a manner that would allow Payees to access the associated funds before pay date. 14.7 Employment Verification Services; Employee Authorized Disclosure. The following additional terms and conditions apply to the Employment Verification Services and Employee Authorized Disclosure: PROPRIETARY AND CONFIDENTIAL TO ADP, INC. Page 11 14.7.1 Employment Verification Services. Client authorizes ADP and Verification Agents through which Employment Verification Services are performed to disclose, on Client's behalf, Verification Data to Verifiers who wish to obtain or verify any of Client's employees' (or former employees')Verification Data. Verification Data will be disclosed to Verifiers who certify they are entitled to receive such data (as described below) pursuant to FCRA, and, in the case of income information requests, who additionally certify they have a record of the employee's consent to such disclosure or who utilize a salary key. In accordance with FCRA, Verification Data may be provided to Verifiers where (i) the employee has applied for a benefit (such as credit, other employment or social services assistance); (ii)the employee has obtained a benefit and the Verifier is seeking to (a) determine whether the employee is qualified to continue to receive the benefit; and/or (b) collect a debt or enforce other obligations undertaken by the employee in connection with the benefit; or(iii)the Verifier is otherwise entitled under FCRA to obtain the Verification Data. In certifying they have a record of the employee's consent, Verifiers generally rely on the employee's signature on the original application as authorization for the Verifier to access the employee's income data at the time of the application and throughout the life of the obligation. Client understands that Verifiers are charged for commercial verifications processed through ADP or its Verification Agents. 14.7.1.1 Data Quality. If requested by ADP, Client agrees to work with ADP during implementation to produce a test file and validate the Verification Data using validation reports made available by ADP or its Verification Agents. If Client uses ADP's hosted payroll processing services, ADP will utilize the latest Verification Data available on ADP's payroll processing system. 14.7.1.2 Notice to Furnishers of Information: Obligations of Furnishers of Information". Client certifies that it has read the Notice to Furnishers provided to Client at the following URL: https://www.consumer.ftc:gov/articles/ pdf-0092-notice-to-furnishers.pdf. Client understands its obligations as a data furnisher set forth in such notice and under FCRA which include duties regarding data accuracy and investigation of disputes, and certifies it will comply with all such obligations. Client further understands that if it does not comply with such obligations, ADP may correct incorrect Verification Data on behalf of Client or terminate the Employment Verification Services upon 90 days prior written notice to Client. 14.7.1.3 Archival Copies. Notwithstanding anything to the contrary in the Global Master Terms and Conditions, Client agrees that, after the termination of this Agreement, ADP and its Verification Agents may maintain archival copies of the Verification Data as needed to show the discharge and fulfillment of obligations to Client's employees and former employees and the provisions of Section 4 of the Global Master Terms and Conditions will continue to apply during the time that ADP and its Verification Agents maintain any such archival copies. 14.7.1.4 Employee Authorized Disclosure.ADP may disclose or use Personal Data of Client's employees to the extent the employee requested or consented to the disclosure or use such as but not limited to when an employee needs their identity verified when they submit an application for a bank account, cellular service, credit or a benefit. 14.8 ADP Marketplace and Use of ADP APIs. 14.8.1 Disclaimer. ADP may provide Client with access to the ADP Marketplace. Client acknowledges that any third party application or service purchased by Client through the ADP Marketplace is provided by a third party and not ADP and ADP makes no endorsements, representations or warranties (including any representations or warranties regarding compliance with laws) regarding such application or service. Client will enter into a relationship directly with the third parry provider of such application or service.Any application or service purchased through the ADP Marketplace will be governed exclusively by the terms and conditions agreed to by Client and the third parry provider and not by this Agreement. ADP will not provide any advice, service or support with respect to any third party application or service purchased on the ADP Marketplace. 14.8.2 Transmitting Information to Third Parties. In the event that Client elects to use an API to provide any Client Content or employee or plan participant information to any third parry, Client represents that it has acquired any consents or provided any notices required to transfer such content or information and that such transfer does not violate any applicable international, federal, state, or local laws and/or regulations. ADP shall not be responsible for any services or data provided by any such third party. 14.8.3 Use of the ADP APIs. Client will use the ADP APIs to access Client's information only. Client may not use any robot, spider, or other automated process to scrape, crawl, or index the ADP Marketplace and will integrate Client's application with the ADP Marketplace only through documented APIs expressly made available by ADP. Client also agrees that Client will not (a) use the ADP Marketplace or any ADP API to transmit spam or other unsolicited email; (b) take any action that may impose an unreasonable or disproportionately large load on the ADP infrastructure, as determined by ADP; or(c) use the ADP APIs or the ADP Marketplace in any way that threatens the integrity, performance or reliability of the ADP Marketplace, Services or ADP infrastructure. ADP may limit the number of requests that Client can make to the ADP API gateway to protect ADP's system or to enforce reasonable limits on Client's use of the ADP APIs. Specific throttling limits may be imposed and modified from time to time by ADP. 14.9 ESS&MSS Technology. The following additional terms and conditions apply to the ESS&MSS Technology. 14.9.1 Client acknowledges that Client's employees or participants may input information into the self-service portions of the ADP Application Programs.ADP shall have no responsibility to verify, nor does ADP review the accuracy or completeness of the information provided by Client's employees or participants to ADP using any self-service features. ADP shall be entitled to rely upon such information in the performance of the Services under this Agreement as if such information was provided to ADP by Client directly. 14.10 History Conversion Services. ADP shall provide to Client certain history conversion professional services as indicated on the Sales Order (the "History Conversion Services"). As a condition to receiving the History Conversion Services, Client will be subject to the additional terms and conditions of this Agreement. The following History Conversion Services are intended for Clients that has no more than 5,000 terminated and active records. PROPRIETARY AND CONFIDENTIAL TO ADP, INC. Page 12 14.10.1 Description of Services. The History Conversion Services shall include one or more of the Services set forth in the accompanying appendix. History Conversion Services includes virtual training (all training is done remotely via internet and/or telephone). History Conversion Services do not include the conversion or import of any documents. 14.10.2 Client Obligations. As a prerequisite to receiving the History Conversion Services (the "Project"), Client agrees that (a) it has sufficient resources to allocate to the Project; (b) it will provide access to prior vendor data in order to perform an extraction of data (access may include either extraction of data related to the history conversion or via PDF reports, or registers; (c) it will perform an audit of converted data and review internally, in accordance with the timeline set forth below; (d)it will consent to the direct import of the converted check history data files into ADP Workforce Now; (e)it will ensure that all employees with data to be converted be loaded into ADP Workforce Now(to include prior year terminated employees) in advance of the import of check history data; (f) it will provide ADP a single point of contact for data extraction from a prior single vendor database(if multiple points of contact are required which necessitates additional data extraction work efforts and/or separate security access rights for the external viewer, such additional work efforts would be subject to additional fees). All other historical data items will be loaded to an external history viewer ("History Viewer") as described in the History Conversion Services Appendix. In addition, with respect to Check History Conversion Services only ("Check History"), Client agrees that it will complete and validate the data mapping and shall be responsible for final review of data during mapping process. If ADP discovers errors in the data mapping following Client's final validation and submission, corrections to the Check History data may be required. In connection therewith, additional fees may be charged by ADP in order to correct such errors in addition to the fees described in the Sales Order. Data mapping must be completed within sixty (60) days of the date that the Client is first able to commence the data mapping processing ("Data Mapping Completion Date"). If Client fails to complete the data mapping by the Data Mapping Completion Date, then additional monthly storage charges shall apply. 14.10.3 Completion of History Conversion Services. Upon completion of the History Conversion Services, Client will immediately notify ADP if the History Conversion Services and deliverables outlined in the Sales Order have not been satisfactorily delivered.The History Conversion Services will be deemed accepted by Client if no response has been received within five (5)days of the date of completion of the History Conversion Services. 15 Miscellaneous 15.1 Amendment. This Agreement may not be modified, supplemented or amended, except by a writing signed by the authorized representatives of ADP and Client. 15.2 Assignment. Neither this Agreement, nor any of the rights or obligations under this Agreement, may be assigned by any party without the prior written consent of the other party, such consent not to be unreasonably withheld. However, Client may assign any or all of its rights and obligations to any other Client Group member and ADP may assign any or all of its rights and obligations to any Affiliate of ADP, provided that any such assignment shall not release the assigning parry from its obligations under this Agreement. This Agreement is binding upon and inures to the benefit of the parties hereto and their respective successors and permitted assigns. 15.3 Additional Documentation. In order for ADP to perform the Services, it may be necessary for Client to execute-and deliver additional documents (including reporting agent authorization, client account agreement, limited powers of attorney, etc.) and Client agrees to execute and deliver such additional documents. 15.4 Subcontracting. Notwithstanding Section 15.2,ADP reserves the right to subcontract any or all of the Services, provided that ADP remains fully responsible under this Agreement for the performance of any such subcontractor. For the avoidance of doubt, third parties used by ADP to provide delivery or courier services, including the postal service in any country or any third party courier service, and banking institutions,are not considered subcontractors of ADP. 15.5 Entire Agreement. This Agreement constitutes the entire agreement and understanding between ADP and Client with respect to its subject matter and merges and supersedes all prior discussions, agreements and understandings of every kind and nature between the parties. No parry will be bound by any representation, warranty, covenant, term or condition other than as expressly stated in this Agreement. Except where the parties expressly state otherwise in a relevant exhibit, annex, appendix or schedule, in case of conflict or inconsistency between these Global Master Terms and Conditions and any such exhibit, annex, appendix or schedule, the Global Master Terms and Conditions will prevail and control. Purchase orders or statements of work submitted to ADP by Client will be for Client's internal administrative purposes only and the terms and conditions contained in any purchase order or statements of work will have no force and effect and will not amend or modify this Agreement. 15.6 No Third Party Beneficiaries. Except as expressly provided herein or in an applicable exhibit, annex, appendix or schedule, nothing in this Agreement creates, or will be deemed to create, third parry beneficiaries of or under this Agreement. Client agrees that ADP's obligations in this Agreement are to Client only, and ADP has no obligation to any third party(including,without limitation, Client's personnel, directors,officers, employees, Users and any administrative authorities). 15.7 Force Majeure. Any parry to this Agreement will be excused from performance of its obligations under this Agreement, except for Client's obligation to pay the fees to ADP pursuant to Section 11, for any period of time that the parry is prevented from performing its obligations under this Agreement due to an act of God, war, earthquake, civil disobedience, court order, labor disputes or disturbances,governmental regulations,communication or utility failures or other cause beyond the party's reasonable control. Such non-performance will not constitute grounds for breach. 15.8 Waiver. The failure by any party to this Agreement to insist upon strict performance of any provision of this Agreement will not constitute a waiver of that provision. The waiver of any provision of this Agreement shall only be effective if made in writing signed by the authorized representatives of ADP and Client and shall not operate or be construed to waive any future omission or breach of, or compliance with, any other provision of this Agreement. 15.9 Headings. The headings used in this Agreement are for reference only and do not define, limit, or otherwise affect the meaning of any provisions hereof. PROPRIETARY AND CONFIDENTIAL TO ADP, INC. Page 13 15.10 Severability. If any provision of this Agreement is finally determined to be invalid, illegal or unenforceable by a court of competent jurisdiction, the validity, legality or enforceability of the remainder of this Agreement will not in any way be affected or impaired and such court shall have the authority to modify such invalid, illegal or unenforceable provision to the extent necessary to render such provision valid, legal or enforceable, preserving the intent of the parties to the furthest extent permissible. 15.11 Relationship of the Parties. The performance by ADP of its duties and obligations under this Agreement will be that of an independent contractor and nothing contained in this Agreement will create, construe or imply an agency,joint venture, partnership or fiduciary relationship of any kind between ADP and Client. None of ADP's employees, agents or subcontractors will be considered employees, agents or subcontractors of Client. Unless expressly stated in this Agreement, none of ADP, its employees, agents or its subcontractors may enter into contracts on behalf of, bind, or otherwise obligate Client in any manner whatsoever. 15.12 Governing Law. This Agreement is governed by the laws of the State of New York without giving effect to its conflict of law provisions. 15.13 Communications to U.S. Based Employees. Client agrees that ADP may use Client's U.S.-based employee and/or participant name, email and mailing address to provide information about products and/or services offered by ADP directly such employees and/or participants. Client may elect for ADP to cease such communications upon 30 days' prior written notice. In addition, each communication sent by ADP will comply with applicable laws and will enable the recipient to opt-out of receiving additional similar communications from ADP. 15.14 Jurisdiction. Any disputes that may arise between ADP and Client regarding the performance or interpretation of this Agreement shall be subject to the exclusive jurisdiction of the state and federal courts of New York, New York. The parties hereby irrevocably consent to the exclusive jurisdiction of the state and federal courts of New York, New York and waive any claim that any proceedings brought in such courts have been brought in an inconvenient forum. THE PARTIES HEREBY IRREVOCABLY WAIVE THEIR RIGHT TO TRIAL BY JURY. 15.15 Counterparts. This Agreement may be signed in two or more counterparts by original, .pdf(or similar format for scanned copies of documents) or facsimile signature, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 15.16 Notices. All notices required to be sent or given under this Agreement will be sent in writing and will be deemed duly given and effective (i) immediately if delivered in person, or (ii) upon confirmation of signature recording delivery, if sent via an internationally recognized overnight courier service with signature notification requested to Client at the address indicated on the signature page hereof or to ADP at 99 Jefferson Road, Parsippany, New Jersey 07054,Attention: Legal Department or to any other address a party may identify in writing from time to time. A copy (which shall not constitute notice) of all such notices shall be sent to ADP at One ADP Boulevard, MS 425, Roseland, New Jersey 07068, Attention: General Counsel and to Client at the address indicated on the signature page hereof. 15.17 Survival. Those provisions which by their content are intended to, or by their nature would,survive the performance,termination, or expiration of this Agreement,shall survive termination or expiration of this Agreement. PROPRIETARY AND CONFIDENTIAL TO ADP, INC. Page 14 Appendix History Conversion Services Description u,Available History Conversion Services Check History Includes:Net/Gross Salary,Taxes, Deductions, Hours, Hours&Earnings Codes. History data files will be created and imported into ADP Workforce Now for Client practitioner level access only(not individual employee access). Pay Rate History Includes:Position ID, Change Effective On, Compensation change Reason, Rate Type, Rate 1 Amount, Standard Hours, Pay Frequency Code, Rate 2 Amount, Rate Currency,Annual Salary. History data will be loaded to an external viewer provided by ResNav Solutions(see below). Position History Includes:Job Title, Department, Business Unit, Location,Assigned Shift, Full time Employee, Pay Grade, Job Class,Salary Structure,Allocation, Union, FLSA,Workers Compensation,Scheduled Hours, Hours period, EEO Job Class, Cost Number, Management Position, Reports to Position ID. History data will be loaded to an external viewer provided by ResNav Solutions(see below).Automated Export Services are available(see below). Benefits History(Employee Includes:Employee level Benefit selectiown data included: Plan Type and Name, Coverage Level, Benefit Selection) Enrollment Effective and End Dates, Employee and Employer Costs per period. Does not include company level detail for Benefit plans. History data will be loaded to an external viewer provided by ResNav Solutions(see below). Automated Export Services are available (see below). Benefits I Dependent History Includes: Employee Level Dependents, Including: Dependent Tax ID, Relationship, Name,Address, Gender, Birth Date,Type, Status, Enrollment Start and End Dates, Plan Name and type, Plan Provider Name, Coverage level, Benefit Status. History data will be loaded to an external viewer provided by ResNav Solutions(see below). Automated Export Services are available (see below). Time&Attendance History Includes:Employee Time Zone, Pay Rule, Punch Date, Punch In/Out Times&Codes,Totaled Amount, Cumulative Total, Reason/Details. History data will be loaded to an external viewer provided by ResNav Solutions(see below). Automated Export Services are available(see below). Employee Status History Includes:Changes to Employee Status, including Termination Date and Reason, Rehire Eligibility and Date, LOA Start and Return Dates with Reasons Loading History Data Using RosmavSolutions. History data will b loaded tanexternal history viewer provided byResNav Solutions, a standalone system,which allows Client ooretain history from its legacy systems. History Viewer URL access will be provided 0oClient practitioner for login with password.Access to History Viewer will be at the practitioner level only(not individual employee access). Automated Export Services.The Automated Export Services associated with History Viewer, applies to the custom report that loads data from the ADP Application Platform tnthe History Viewer onaone-time daily basis.The data loaded from the ADP Application P|atformtotheHistnry Viewer/sspecific to pay rate,status and position data only.This enables joint reporting from History Viewer for both current and historical employee data. ResNav Solutions shall setup the custom report under a specific practitioner during the history conversion process and the ADP integration team shall initiate the automation ofthe report. PROPRIETARY AND CONFIDENTIAL TOADP, INC. Page 15 Data Privacy Appendix This Data Privacy Appendix is a data processing agreement under Applicable Law and supplements the Agreement, including Sections 4 (Confidentiality), 9.3 (Data Security)and 10.1 (Data Security Breach/Notification), between ADP, Inc. and Client. Capitalized terms throughout this Data Privacy Appendix not defined in the Agreement are defined in the ADP Privacy Glossary at www.adp.com/-/media/adp/privacy/pdf/ glossary en.pdf. PART I-GENERAL 5. Compliance Obligations. ADP will notify Client if ADP makes a determination that it can no longer meet its Processing obligations 1. Client Obligations. Client shall only provide ADP with Client under Applicable Law. Personal Data that: (a) is required to perform the Services; (b) has Client may, upon providing written notice to ADP, take reasonable been collected in accordance with Applicable Law; and (c) Client steps to stop and remediate unauthorized Processing of Client has authority to provide under Applicable Law. Personal Data. 2. ADP Obligations. ADP, as a Data Processor (or equivalent 6. Client Instructions. When receiving a Client instruction term under Applicable Law), will comply with Applicable Law for regarding the Processing of Personal Data, ADP will notify Client if Processing Client Personal Data pursuant to the Agreement. ADP ADP considers such instruction violates Applicable Law; however, will not: (a) "sell" or "share" Client Personal Data; (b) retain, use, ADP is not obliged to and will not perform a legal examination with disclose or otherwise Process Client Personal Data outside of its respect to a Client instruction. direct business relationship with Client or for any commercial or other purpose other than the business purposes specified in the 7. Assistance. ADP will assist Client with its data privacy agreement(s) between Client and ADP, except as permitted by obligations where required under Applicable Law,including assisting Applicable Law; or (c) combine Client Personal Data with personal Client in responding to and addressing Client Employee individual data that ADP receives from, or on behalf of, other persons, or rights requests and complaints and providing Client with relevant collects from its own interaction with a consumer, except as information for conducting data protection impact or risk permitted under Applicable Law. ADP shall have the right to assessments.ADP reserves the right to charge for such assistance Process Client Personal Data in order to comply with its legal rendered. If ADP receives an individual rights request or complaint obligations (e.g., compliance with sanction laws) or in order to directly from a Client Employee, ADP shall promptly forward the prevent,detect or investigate fraud. Client Employee request to Client. ADP employees and contingent workers are authorized to Process Client Personal Data to the extent necessary to provide Services g. Client Audit. ADP will answer questions asked by Client and as permitted under the Agreement and by Applicable Law. regarding the Processing of Client Personal Data by ADP. In the event Client reasonably considers that the answers provided by 3. De-identification and Aggregation. In addition to any right's ADP justify further analysis, ADP will, in agreement with Client, granted to ADP in Section 4 of the Agreement to use aggregated either: and anonymized data, ADP will not attempt to, and will not, re- identify any Client Personal Data. (a)provide security materials known as ADP's trust package(which includes security policy and standards overview, password 4. Transfers to Subprocessors.ADP may transfer Client Personal summary, resiliency program summary, disaster recovery program Data to ADP Subprocessors and Third Party Subprocessors located overview, data center and hosting service summary and a third outside of the country in which Client Personal Data was collected. party risk management executive summary), that details ADP's Third Party Subprocessors are bound by written contracts with business processes and procedures for the Processing of Client ADP that impose data protection terms that are not less protective Personal Data;or, than those imposed by this Data Privacy Appendix. An up-to-date list of ADP Subprocessors and Third Party (b) make the facilities it uses to Process Client Personal Data Subprocessors, including locations, is accessible at htt sem:// available for an audit by a qualified independent third-party thebridge.adp.com/workforce-now/qdpr/m/media/634. Such list may assessor reasonably acceptable to ADP, bound by confidentiality be updated from time to time. obligations satisfactory to ADP and engaged by Client. Client will provide a copy of the audit report to ADP's Global Chief Privacy Officer which will be ADP Confidential 20221202 PROPRIETARY AND CONFIDENTIAL TO ADP, INC. Page 16 Information. Audits shall be conducted no more than once per year clauses, or rely upon any other lawful transfer mechanism prior to during the term of the Agreement during regular business hours and transferring Client Personal Data to a Third Party Subprocessor or will be subject to (i) a written request submitted to ADP at least 45 to an ADP company when the ADP Privacy Code does not apply. days in advance of the proposed audit date; (ii) a detailed written audit plan reviewed and approved in advance by ADP's security 11.Additional Subprocessor Obligations.Within 30 days of a written organization; and (iii) ADP's on-site security policies. Such audits update (including electronic notice) by ADP to Client adding a new will take place only in the presence of a representative of ADP's Subprocessor, Client may object to such new Subprocessor by global security office, ADP's global data privacy & governance providing written notice to ADP alleging objective justifiable grounds team, or such person designated by the appropriate ADP that such Subprocessor is unable to protect Client Personal Data. If representative. The audits shall not be permitted to disrupt ADP's the parties cannot reach a mutually acceptable solution,ADP shall, Processing activities or compromise the security and confidentiality at its option, either: (a) not allow the Subprocessor to access Client of Personal Data pertaining to other ADP Clients. ADP will charge Personal Data; or(b)allow Client to terminate the relevant Services Client a reasonable fee for such audit. in accordance with the terms of the Agreement. PART II—GDPR 12. ADP Privacy Code EU Authorization. ADP will make commercially reasonable efforts to maintain the EU authorization of 9. Scope. This Part II applies solely with respect to Client Personal its ADP Privacy Code for the duration of the Agreement and will Data subject to Regulation (EU) 2016/679 on the protection of promptly notify Client of any subsequent material changes in the EU natural persons with regard to the processing of Personal Data and authorization of its ADP Privacy Code. on the free movement of such data ("General Data Protection Regulations" or "GDPR"). With respect to ADP's processing of PART III-Miscellaneous Client Personal Data subject to GDPR, the ADP Privacy Code, located at https://vvww.adp.com/-/media/adp/privacy/pdf/ bcrpc en.pdf, governs. ADP has obtained EU authorization of its 13. Order of Precedence. In the event of a conflict between the ADP Privacy Code. Agreement, this Data Privacy Appendix, the ADP Privacy Code and Applicable Law,then the conflict will be resolved by giving effect to such in the following order of precedence: (a)Applicable Law; (b) 10. International Transfers. For transfers outside of the EEA, the ADP Privacy Code; (c)this Data Privacy Appendix; and (d)the Switzerland and United Kingdom, the ADP Privacy Code serves as Agreement. the legal basis for the data transfer to an ADP Group Company or between ADP and an ADP Subprocessor, which Client acknowledges and accepts. ADP shall enter into appropriate 14.Scope.This Data Privacy Appendix provides no additional rights contractual agreements,such as standard contractual to a Client Employee that are not already provided under the Applicable Law to which the Client Employee is subject. 20221202 PROPRIETARY AND CONFIDENTIAL TO ADP, INC. Page 17 Sales Order Quote Number 02-2023-641367 1 Company Information Executive Contact Town Of Southold Michelle Nickonovitz 53095 Route 25 Deputy Comprtoller Southold, NY 11971-4642 michelleri(asoutholdtownnV.gov United States (631) 765-4333 Recurring Fees and Considerations Number of Employees:280 on Town Of Southold Per Processing Count Min Base Rate Bi-Weekly Annual Workforce Now Payroll Solutions 280 - $100.00 $3.20 $996.00 $25,896.00 • Enhanced Payroll Delivery Fee(if applicable) 1 - - $20.00 $20.00 $520.00 Employment and Income Verification 320 - - - $0.00 $0.00 • Employment Verification Additional Jurisdiction (if applicable) 2+ $11.00/month Annual Processing Count Min Base Rate Annual Year End Forms,W2s or 1099s 280 - - $3.50 $980.00 Total Annual investment Total Annual Workforce Now Services $27,396.00 Other Considerations Count Rate Total '1i• ' Hardware and Other Fees • Professional Services: Pay Check History Conversion 1 $0.00 $0.00 • Professional Services: Historical Data Conversion 1 $0.00 $0.00 *Employee Pay Rate(or Salary)History *Employee Position (or Job Profile) History Other Considerations Total Implementation • Implementation for Workforce Now Payroll Solutions $6,500.00 Total Other Considerations Total Setup Implementation and One-Time Fees $6,500.00 Page 18 Sales Order Quote Number 02-2023-641367 1 AP Company Information Executive Contact Town Of Southold Michelle Nickonovitz 53095 Route 25 Deputy Comprtoller Southold, NY 11971-4642 michellen 6�1)south oldtownm;.gov United States (631) 765-4333 Recurring Fees and Considerations Number of Employees:40 on Ferry District Per Processing Count Min Base Rate Bi-Weekly Annual Workforce Now Payroll Solutions 40 - - $3.20 $128.00 $3,328.00 o Enhanced Payroll Delivery Fee(if applicable) 1 - - $10.00 $10.00 $260.00 Additional Jurisdiction (if applicable) 2+ $11.00/month ,. Annual Processing Count Min Base Rate Annual Year End Forms,W2s or 1099s 40 - - $3.50 $140.00 s Total Annual Investment Total Annual Workforce Now Services $3,728.00 Page 19 Sales Order � Quote Number 02-2023-641367 1 Important Project and Billing Information Billing for Payroll Processing Services, HCM and any module bundled into the single per employee per processing fee for payroll, is billed immediately following the client's first payroll processing. The billing count is based on the number of pays submitted during each processing period,therefore total billing may fluctuate. Unemployment Claims in excess of the 10%claims cap will be billed at$36.00 per claim.The fee for optional hearing representation is$155.00 per appearance. Attorney representation required in certain states and is subject to change (currently: AZ, DE, KY, MO, NC, SC, SD,and WV). Representation fee not to exceed actual attorney fees. Optional service available through non-ADP affiliated attorneys. Attorneys will be retained on behalf of client for limited purpose of representing Client at the hearing. No referral fee applies. No attorney-client relationship exists or will be formed between ADP and Client. Other ADP's Fees for Service will be debited directly out of client's bank account of their choosing seven(7)days from invoice date.ADP will send invoices to michellen@southoldtownny.gov Expiration Date: 1/18/2024 Important Professional Services Information History Conversion: The services noted on this sales order are performed by ADP Professional Services and are for companies with less than 1000 active employees with a maximum of 5000 total records (a combination of both active and terminated lives) with data coming from a single data base source. Conversion of history from a database with a greater number of records or from multiple databases must be quoted via a customized statement of work. L ummary timated Annual Net Investment: $31,124.00 Total Net Implementation: $6,500.00 The ADP Services Listed on this Sales Order are provided at the prices set forth herein and in accordance with the ADP Master Services Agreement(or other similar agreement governing ADP's services),which shall include any appendix,exhibit, addendum,schedule or other similar document attached thereto or accompanying this Sales Order. By signing below you are acknowledging and agreeing to such terms and conditions and to the listed prices. ADP, Inc. Client:Town Of Southold Signature: Signature: (�i�G da Name: Name: 6( 0 _r J Title: Title: Date: Date: I 1 6 3,0@L Page Page 20 Sales Order Quote NUM11)c:1,C-2-2023-641367 1 Workforce Now included Services Enhanced Payroll n Tax Filing Service a Employee and Manager Self Service n Payment Services a Paid Time Off Accruals ® Reports Library and Custom Report Writer a ADP Portal with Customized Content • Wage Garnishment Processing ® Access to Mobile Apps ® New Hire Reporting o Employee Discount Program • General Ledger Solution a Group Term Life Auto Calculation ® Intelligent Insights for Employee Issue o Conversational Virtual Assistant Resolution e Online Reports and Pay Statements Employment Verification • Commercial Employment and Income a Client access to Electronic Reports and Tools Verifications o Social Services Verifications o Immigration Verifications ® Workers Compensation Verifications Implementation Support and Data Conversion 9 Pay Rate (or Salary)History: Inc.up to 7 a Position (or Job Profile) History: Inc. up to 7 years;Max 5000 records(Total Lives,Terms, years;Max 5000 records(Total Lives,Terms, LOA) LOA) Thank you for your consideration Page 21 . . � ' IDV�stOleDtSummary Quotc NUMber 02-20213-641367 1 29P Company Information ExecuhveConLac1 Town OfSoutho!d ` Michelle Nicknnnvitz G3O95Route 25 Deputy Cornprtoller Southold. NY 11971-4642 United States (63l) 765'4333 320 Total Implementation Total Annual Employees costs /nvesnant Expiration 1/18/2U24 ADP Sales Associate Chris Russo MAS UMDIVI ^* The Implementation Costs and Total Annual Investment listed out on this Investment Summary are estimates based on the services, frequencies, recurring rates and pay counts outlined on the sales order and are shown for illustrative purposes only. These numbers are not binding amounts and shall not become incorporated into or made a part ofany sales order orservices agreement governing the services contemplated therein. Page