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HomeMy WebLinkAboutNYS DEC FW&M MELISSA A. SPIRO LAND PRESERVATION COORDINATOR melissa.spiro@town.southold.ny.us Telephone (631) 765-5711 Facsimile (631 ~ 765-6640 OFFICE LOCATION: Town Hall Annex 54375 State Route 25 (comer of Main Road & Youngs Avenue) Southold, New York MAILING ADDRESS: P.O. Box 1179 Southold. NY 11971-0959 DEPARTMENT OF LAND PRESERVATION TOWN OF SOUTHOLD To: Elizabeth A. Neville Town Clerk Date: Re: Melissa Spiro Land Preservation Coordinator January 10, 2006 Contract No. C005692 = $1,000,000 grant Plan and Cost-Sharing Agreement for Acquisition of Coastal Wetlands Pipe's Cove Land Acquisition - Reese Property Dear Betty: Enclosed you will find the Town's copy of the approved and executed Plan and Cost Sharing Agreement for Acquisition of Coastal Wetlands referencing the $1,000,000 grant the Town was awarded from NYS-DEC, Division of Fish, Wildlife and Marine Resources for the Reese property acquisition. Please enter Contract No. C005692 into LaserFiche and retain the original document for safe-keeping. Supervisor Horton executed this agreement in accordance with Resolution No. 390, adopted June 21, 2005, by the Southold Town Board. A copy of said resolution is attached to the document. Mehssa /md cc: Patricia A. Finnegan, Town Attorney w/o enc. New York State Department of Environmental Conservation Division of Fish, Wildlife & Marine Resources, 5th Floor 625 Broadway, Albany, New York 12233-4750 Phone: (518) 402-8924 · FAX: (518) 402-9027 Website: www.dec.state.ny.us Denise M. Sheehan Commissioner Janua~ 4,2006 Ms. Meiissa A. Spire Land Preservation Coordinator Department of Land Preservation Town of Southold P.O. Box 1179 Southhold, New York 11971-0959 Subject: Contract C005692 Pipe's Cove Land Acquisition Dear Ms. Spiro: Enclosed is your copy of Contract No. C005692. It has been approved by ail State agencies concerned. If you have any questions, please call me at (518-402-8994) or Heather Amster at (631-444-0300). Thank you for your assistance during the contract process. Sincerely, Enclosure cc: H. Amster Sondra King Sr. Administrative Assistant Division of Fish, Wildlife and Marine Resources JAN -9 2006 !'~ ~ Contract No. C005692 PLAN AND COST-SHARING AGREEMENT FOR ACQUISITION OF COASTAL WETLANDS Project Name: Cooperator: Pipe's Cove Coastal Wetlands Town of Southold This AGREEMENT by and between the New York State Departmem of Enviromemal Conservation, hereinafter referred to as "Departmem," with offices located at 625 Broadway, Albany, New York 12233 and the Town of Southold, hereinat~er referred to as "Town," with offices located at 53095 Main Road, Southold, NY 11971. WITNESSETH: WHEREAS, Pipe's Cove, located in the Town of Southold, Suffolk County, New York is recognized as a Coastal Wetland of Critical Importance to the environmental health of the Peconic Estuary; and WHEREAS, the Department, the Town, the County of Suffolk (hereinafter "County"), and The Nature Conservancy (hereinafter "TNC") have undertaken a land preservation effort at Pipe's Cove which includes acquisition of certain critical properties, including the 47.31-acre Reese property (hereinafter "Property'); and WHEREAS, the Town has entered into a Contract of Sale to purchase the Property for $2,250,000, which Contract is attached hereto as SCHEDULE A; and WHEREAS, the Department has been awarded a $1,000,000 Coastal Wetlands Grant (hereinafter "Grant") from the U.S. Fish and Wildlife Service for purchase of the Property, and has entered into Grant Agreement Number C - 4 -L- 1, dated March 28, 2005, with U.S. Fish & Wildlife Service, attached hereto as SCHEDULE B; and ~--~ [~ ~ [~ ~ ~ 1 .~ JAN -9 2006 DEPI OF LAND PRESERVATION WHEREAS, under the terms of the Grant Agreement, the Town, County and TNC are matching the $1,000,0000 federal contribution with cash, land and in-kind services totaling $2,067,000, including $1,250,000 cash needed to complete the Reese acquisition; and WHEREAS, under the terms of the Grant Agreement, the Department is to subgrant the Grant to the Town, for purposes of completing the Reese acquisition: NOW, THEREFORE, in consideration of the promises and the mutual covenants and conditions contained in this Agreement, the Department and the Town agree as follows: 1. The Department will, subject to the availability of funds and upon transfer of the deed to the Town in recordable form, tender to the Town a State Treasury Check in the amount of $1,000,000. 2. The Town will cause the deed from Reese to the Town to include the following language: "The above-described property is acquired in part with funding received by the State of New York from Grant Agreement Number C - 4 - L - 1 dated March 28, 2005 between the U.S. Fish and Wildlife Service (Service) and the State of New York, Department of Environmental Conservation. All present and future use of this property are and shall remain subject to the terms and conditions described in the Notice of Grant Agreement, attached hereto as Schedule __ and recorded herewith, and to the other administrative requirements of the applicable grant funding program of the Service." 3. The Town will cause the deed from Reese to the Town to include as an exhibit a Notice of Grant Agreement, substantially in the form attached hereto and made a part hereof as SCHEDULE C; 2 4. Concurrently with recording of the deed to the Town, the Town will cause a Notice of Grant Agreement to be recorded against each of the properties being contributed by the Town and County as match under the Grant Agreement. The match properties are the Posillico Property, SCTM# 1000-53-1-7 and 1000-53-3-15.1, the Waldron Property, SCTM# 1000-53-2-5, and the Levin Property, SCTM# 1000- 45-1-9.1. The form of the Notice of Grant Agreement for the match properties is attached hereto and made a part hereof as SCHEDULE D. 5. The Town will ensure that the conveyance complies with all applicable state and federal laws including State Environmental Quality Review Act (SEQRA). 6. The Town covenants and agrees that the Property will be accessible to the general public, including all residents of the State of New York. 7. The Town will visibly and permanently recognize the Department and US Fish & Wildlife Service participation in the project on all site identification signs installed upon completion of the project. 8. The Department and Town will comply fully with 50 CFR Part 84 Department of the Interior Fish & Wildlife Service National Coastal Wetland Conservation Grant Program, with specific emphasis on 84.48 as it pertains to the procedures of acquiring, maintaining and disposing of real property. 9. The Town will comply fully with the terms and conditions of Appendices A and B. 10. After signatures are affixed hereto and upon approval by the Attorney General and the State Comptroller, this Agreement shall be binding upon the parties, their heirs, personal representatives, assigns and successors in interest. 11. Notwithstanding the foregoing, if the conveyance contemplated herein is not accomplished by December 31, 2005, this Agreement shall become null and void.. 1N WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto on the day and year appearing following their respective signatures. SIGNATURE PAGE Contract Number: C005692 Agency Certification: "In addition to the acceptance of this Agreement, I also certify that original copies of this signature page will be attached to all other exact copies of this contract." TOWN SIGNATURE DEPARTMENT SIGNATURE DATED: I t' t [J~' 0 C ATTORNEY GENERAL'S SIGNATURE APPROVED AS TO FORM NYS ATTORNEY GENERAL COMPTROLLER'S SIGNATURE DATED: By signature hereunder, the Town of Southold represents that it has the legal status necessary to enter into this contract and that the person signing is authorized to do so as evidenced by a resolution of its legislative body. a,. J,,ff~ Authorized Representative: ¢ Supervisor/ 6/30/05 Date On this 30th day of June ~ 20 Q5 before me personally came Joshua Y. Horton to me known who being duly sworn did depose and say thatm&e is the Supervisor (list title) of the Town of Southold the political subdivision of agency there of described in and which executed the within instrument; that s/he knows the seal of said political subdivision; that the seal affixed to said instrument is such seal; that it was so affixed by order resolution or authority of the Southold Town Board (attached certified copy of order resolution or the ordinance authorizing execution of this contract) of said political subdivision, and that ~rhe signed his/her name by that authority. MELANE DOROSKI NOTARY PUBUC, State of New No. 01D04634870 Qualified i~ Suffo k County Commission F. xpir~s Septembe~ 30, ,oUJ~o ELIZABETH A. NEVILLE TOWN CLERK REGISTRAR OF VITAL STATISTICS MARRIAGE OFFICER RECORDS MANAGEMENT OFFICER FREEDOM OF INFORMATION OFFICER Town Hall, 53095 Main Road P.O. Box 1179 Southold, New York 11971 Fax (631) 765-6145 Telephone (631) 765-1800 southoldtown.northfork.net OFFICE OF THE TOWN CLERK TOWN OF SOUTHOLD THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 390 OF 2005 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON JUNE 21, 2005: WHEREAS, the Town of Southold, after thorough consideration has hereby determined that the signing of this Plan and Cost Sharing Agreement with the State of New York for the Acquisition of the Pipe's Cove Coastal Wetlands is desirable and in the public interest; now, therefore, be it RESOLVED that the Town Board of the Town of Southold hereby authorizes and directs Suoervisor Joshua Y. Horton to execute a Plan and Cost Sharing Agreement with the State of New York in connection with the Acquisition of the Pioe's Cove Coastal Wetlands, all in accordance with the approval of the Town Attorney; and, be it further RESOLVED that a certified copy of this resolution be prepared and sent to the New York State Department of Environmental Conservation, 625 Broadway, Albany, New York 12233 together with the executed Plan and Cost Sharing Agreement, and a copy sent to Heather Amster, Esq., NYS-DEC, Division of Land & Forestry, Region 1, Bureau of Real Property, Building 40, SUNY, Stony Brook, NY 11790. Elizabeth A. Neville Southold Town Clerk CERTIFICATE OF RECORDING OFFICER That the attached Resolution is a true and correct copy of the Resolution, authorizing the signing of a Plan and Cost Sharing Agreement in connection with Pipe's Cove Coastal Wetland Acquisition, adopted at a legally convened meeting of the Town Board of the Town of Southold duly held on the 21st day of June, 2005; and further that such Resolution has been fully recorded in the Town Board Minutes in my office. (Title of Record Book) In witness whereof, I have hereunto set my hand this 20th day of June, 2005. If the Applicant has an Official Seal, Impress here. Signature of Recording Officer Town Clerk ~ritle of Recording Officer WARNING: NO REPRESENTATION IS MADE THAT THIS FORM OF CONTRACT FOR THE SALE AND PURCHASE OF REAL ESTATE COMPLIES WITH SECTION S-702 OF THE GENERAL OBLIGATIONS LAW ("PLAIN LANGUAGE"). RESIDENTIAL VACANT LAND CONTRACT OF SALE THIS IS A LEGALLY BINDING CONTRACT. IF NOT FULLY UNDERSTOOD, WE RECOMMEND ALL PARTIES TO THE CONTRACT CONSULT AN ATTORNEY BEFORE SIGNING, NOTE: FIRE AND CASUALTY LOSSES AND CONDEMNATION This contract form does not provide for what happens in the event of fire, or other casualty loss or condemnation before the title closing. Unless different provision is made in this contract, Section 5-131 I of the General Obligations Law will apply. One part of that law makes a Purchaser responsible for fire and casualty loss upon taking possession of the Premises before the title closing. ~t[F('~'[ 'g · Contract of Sale made as of~ ~/;' 200( BETWEEN Harold Rease, Jr., Ronald Reese and Christine Reese Address: 74 Whitehall Road, Rockvllle Center, New York 11570 Social Security Number/Fed. I. D. No(s): hereinai%r called "Seller" and THE TOWN OF SOUTHOLD. 53095 Main Road, P.O. Box 1179, Southold, New York 11971, Address: Social Security Number/Fed. L D. No(s): here/namer called "Purchaser." The parties hereby agree as follows: 1. Premises, Seller shall sell and convey and Purchaser shall purchase the property, together with all buildings and improvements thereon (collectively the "Premises"), more fully described on a separate page marked "Schedule A," annexed hereto and made a part hereof and also known as: Street Address: + 47.314 acres VACANT LAND located at 70380 Main Road, Greenport Tax Map Designation: 1000-45-5-5 Together with Seller's ownership and rights, if any, to land lying in the bed of any street or highway, opened or proposed, ac[ioining the Premises to the center line thereof, including any right of Seller to any unpaid award by reason of any taking by condemnation and/or for any damage to the Premises by reason of change of grade of any street or highway. Seller shall deliver at no additional cost to Purchaser, at Closing (as hereinat~er defined), or therea~er, on demand, any documents that Purchaser may reasonably require for the conveyance of such title and the assignment and collection of such award or damages. 2. Personal Property. This sale also includes all fixtures and articles of personal property now attached or appurtanam to the Premises units specifically excluded below. 8oiler represents and warrants that at Closing they will be paid for and owned by Seller, free and alear of all liens and encumbrances, except any existing mortgage to which this sale may be subject. They include, but are not limited to: Air Conditioning Equipment and Installations, Pumps, Plumbing. i~athroom and Kitchen Cabinets, Range, Oven. Refrigerator, -Freezer, Washing Machine, Clothes Dryer, Dish,masher, Garbage Disposal Unit, Awnipgs, Screens, Sbadoo]~ Venetian Itl/nde, Window ~eatments, Ston,a Doors~ Storm Windows, Door Mirrors, Shrubbery. -Fencing, Flagpole, Tool 8hod, Mail l~ox, Outdoor Statuary, Weather Vano, Window foxes, Television Aerials Switch Plates and Door Hardware, bleating/Lighting/Cooking Fixtures, Mantels, Wall to Wall Carpoting~ and built ins not excluded bolo,.,; (strike out inappliaable items). A8 SAME PRESENTLY EXISTS IN OR ON THE PREMISES IN "AS IS" CONDITION. Excluded from this solo are furniture and household 3. Purchase Price. The purchase price is: payable as follows: $2,250,000.00 (a) on the signing of this contract, by Purchaser's check payable to the Esorowee (as hereina~er defined), subject to collection, the receipt of which is hereby acknowledged, to be held in escrow pursuant to paragraph 6 of this contract (the "Downpayment"): $ (b) by allowance for the principal amount unpaid on the existing mortgage on the date hereof, payment of which Purchaser shall assume by joinder in the deed: $ (c) by a purchase money note and mortgage from Purchaser to Seller: $ (d) with paragraph 7: balance at Closing in accordance $2,250,000.00 4. Existing Mortgage. (Delete if inapplicable) If this sale is subjoot to an existing mortgage as indicated in paragraph 3(b) above: (a) The Promises shall be- conveyed subject to the continuing lion of the existing mortgage, which is presently payable, with interust at tho rate of percent par annum, in monthly installments- of $ whioh include principal, interest and escrow amounts, if any. and with any balance of principal being duo and payable on -- (b) To the extent that any required payments are made on tho ex/ming mortgage between the date hereof and Closing which reduce thu unpaid principal amount thereof below the amount shown in paragraph 3(b), than tho balance pt' tho price payable at Closing under paragraph 3(d) shall be increased by the amount of the payments of pr/no/pal. Seller represents and warrants that tho amount shown in paragraph 3(b) is substantially correat and agrees that only payments requirud by tho ox/sting mortgagu will be made bet,maon tho data horeof and Closing. (o) If there is a mortgagee escrow account, Seller shall asoign it to Pumhaser, if it ~n bo assigned, and in that ease Purshaser shall pay the amount in tho o~row aanount to Sailor at Closing. (d) .Seller ~hail deliver to Pumha~or at Closing a caStiGate dated not mom than 30 da,ye before Cleans ai~ad by ~ holdas of tho existing mongag~, in form fur recording oe~ing ~ amount of ~a unpaid p~noip~, ~a dm~ to which intor~t h~ haan paid ~d~ ~oun~, if ~y, olaim~ to unpaid for principal md inta~ i~mi~ng ~e c~. 8oiler ahall pay ~a f~a fur rcaording anoh ~ifi~to. If ~ holder of tho ani~ng mo~ i~ a b~k or o~ar th~itotian ~ defined in ~otian 274 a of Real Pmpo~ Law it may, inatsM of ~o ~8~ifi~e, fumi~ a leRor oi~od by a duly on.cried employee or a~nh daad not moro ~ 30 day~ before Cluing, annmining ~s ~ info.etlon. (o) Sailer ropras~nto and warrant~ that (i) Sailor hag delivered to Purchaser true and anmplote anpias of tho existing mortg~a, tho note soanr~l thereby and any sxtansion~ and modifisations thereof, (ii) the existing mortgage is not now, and at the time of Ctosing will not be, in default, and (iii) the existing mortga~ does not anntain any provision that permits the holder of the mortgage m r~quiro its immodinte payment in full or to ohang~ any ethos term thasecf by reason of the cole or annv~y~noo of tho Premises. $. Purohuso Mousy Mort~. (Dolet$ if inapplioable) If thoro is to bo a purchar~ munsy mortgage m: indianted in paragraph 3(0) abo~: (a) Tho purchase money note and mortgage shall be drawn by the attorney for Sailer in · e fo~ ~hed or, if no~ ~ ~e o~d~d fo~ MoptM by ~a Now York S~ ~d Title ~infion. P~oh~or ~h~l p~J at Cloning ~ mo~ r~oMing ~ reooMing f~ ~d ~a a~m~s face in ~a ~o~t of ~ for i~ (b) The purshaso money note and mortgage shall also provide that it is sobjsst mad subordiunte to the lion of tho oaiating mortgage and any extensions, modifiaatioas, raplanaments or annsolidatiuns Of tho oMming mortga$o, provided that (i) tho inter~t rate thereof shall not bo gnmter than poroont per annum and the total debt sasvioe thorounder ~mll not be grzater than $ per annum, end (ii) if the principal amount thereof oh~ll exceed the amount of prinoipM owing and unpaid on the nailing mortgage at the time of plasing such now mortgage or consolidated mortgage, the e}to~ bo paid to the holder of sooh pumhac~s money mortgage in reduction of the prinalpal the?asr. The purshase money mortgage shall also provide that sosh payment to the holder thereof shall not alter or affect the regular iantMlmenta, if any, of principnl payable thereunder and that the holder thoranf ~xill, on demand and without charge therefor, exsouto, acknowledge and deli~,~r any agreement or agroomont~ further to offostuate ouch subordination. for any roar, on Clooing does not oeanr and either p~ gives Notice (as defined in paragraph 25) to Eooro~o demanding payment of the Downpaymant, ~oorow~e shall give prompt Notise to the other party of anab demand, If ~sorowee does not ranoivo Noti~ of objection .from ~uoh other pray to the prepaid payment within 10 hue, ieee du~ a1~er tho giving of such Notice, ~;aroxvo~ is haraby anthoriz~:l and directed to make such payment. If receive anoh Notio~ of objantion within such 10 da)' period or if for any other r~on Ec~m,~o in good faith shall cleat not to make such payment, Esoros~ shall anntinue to hold guab amount until otherwi~ dir~ted by Motioe from the pasties to thio ountr=at or u final, nounppealshle judgment, order or danroo of a sourt. However, Esorowoo shall have the fight at any time to deposit tho Downpaymant and the interest thereon ~,Ath the clerk of a anurt in tho ananty in which tho Premiss am lanat~d and shall give Notice ef ~uoh deposit to Seller and Purchaser. Upon sush deposit or other dishurzment in ananrdano~ with tho terms of thio paragraph, Igsoro~c shall be relieved and di~sharg~d of all further obligation~ and maponsibilitias hereunder. (b) The pm'ties anknowlodge that, although Eoarox~ io holding the Do~paymant for $o[lor'~ asoount, for all other acting solely as a stakeholder at their roquom and for their convenience and that lganroweo shall not be liable to eithas party for any ant or omission on its pm unless taken or c, uffor~ in bad faith or in willful disregard of thio aontn'~t or involving Dro~ negliganoe on tho p{~ of Eooraxx~o. Seller and Purchaser jointly and ~rally a~cc ~ defend, indemnif7 and bold Esorowoe hasml~ from and against all ansts, claims; and anpoan~ (including reasonable uttom~' f~) incurred.in anuneotiun with the performance of Eoarosxze's duti~ heroandsr, except with re~p~t to aztinn~ or 0miasions token or ~uffered by Ec~l~xwe in bad faith or in willful disrega,M of thio annt~ant or inv~lvin§ nogii~noo on tho pm of Fs~arov,~o. (o) ~omw$o may ant or refrain from acting in rsap~ot of any matter referred to herein in full reliance upon and with tho advise of anusol which may be selected by it (including any member of its firm) and shall bo fully pmtant~d '.in so anting or refraining from eating upon the a~vioo of suoh (d) Esoro~o anlmowledgcs manipt of the Downpaymant by cheek subject to anllantinn and Esornwso's agreement to the provi~iana of thio paragraph by ~igning in the plane inthantod on the aignatoro page ofthM contract. (e) E~oro,~e or any member of its firm ~hall bo pormittsd to ant as anusol for Seller in any dispute as to tho disbursement of the Downpaymont or any other dispute botv,~oen thc pm-tie: whether or not Eoorowan is in posocsc, ian of the Downpaymant and anntinuas to eat as Ec~rowee. 6. Downnavmant in F~erow. (a) 8~11or2 attorney ("~oorowoo") shall hold tho Downpayment. for Seller's asoount in e~row in a c~gregated bank aanount at until Closing or ~oaner torminatiun of this sontraot and shall pa)' o~r or apply the Dovmpaymant in ancordanoe with the terms of this paragraph. E~asow~ shall not hold the Dov~npaymant in an interas¢ bearing account for tho benefit of tho pmti~. If intareat is held for the benefit of the parties, it shall be paid to tho party entitled to the Downpaymant and the part)' receiving the inter~X :hall pa), any income taken thereon. If interest is not held for tho ban~sfit of tho pastime, tho Downpaymant shall be placed in an IOLA anoount or as otherwis~ permitw, d or required by lasv. Tho ~osial Security or F~daral Idantifiantion number~ of the parties shall be furnished to ~orow~c upon r~luast. At Closing, the Dov~npaymant shall b~ paid by ~;orowan to Seller. If 7~_7. Accantable Funds. All money payable ,d~r ~h s contract, unless otherwise specified, shall be p~d by: (a) Cash, but not over $1,000.00; (b) Good certified check of Purchaser drawn on or official cheek issued by any bank, savings bank, trust company or savings and loan association having a banking office in the State of New York, unendorsed and payable to the order of Seller, or as Seller may otherwise direct upon not less than 3 business days notice (by telephone or otherwise) to Purchaser; (c) As to money other than the purchase price payable to Seller at Closihg, unterrified check of Purchaser up to tho amount of $1000.00; and overnight courier, with receipt acknowledged, to the respective addresses given in this contract for the party and the Escrowee, to whom the Notice isto be given, or to such other address as such party or Escrowee shall hereafter designate by Notice given to the other party or parties and the Escrowee pursuant to this paragraph. Each Notice mailed shall be deemed given on the third business day following the date of mailing the same, except that any notice to Escrowee shall be deemed given only upon receipt by Escrowee and each Notice delivered in person or by overnight courier shall be deemed given when delivered. 26. No Assignment. This contract may not be assigned by Purchaser without the prior written consent of Seller in each instance and any purported assignment(s) made without such consent shall be void. 27. Broker. Seller and Purchaser each represents and warrants to the other that it has not dealt with any real estate broker in connection with this sale other than NO BROKER ("Broker") and Seller shall pay Broker any commission earned pursuant to a separate agreement between Seller and Broker. Seller and Pumhaser shall indemnify and defend each other against any costs, claims and, including reasonable attorneys' fees, arising out of the breach on their respective parts of any representation or agreement contained in this paragraph, The provisions of this paragraph shall survive Closing or, if Closing does not occur, the termination of this contract. 28, Miscellaneous. (a) All pri~r understandings. agreements, representations and warranties, oral or written, between Seller and Purchaser are merged in this contract; it completely expresses their full investigation, neither party relying upon any statement made by anyone else that is not set forth in this contract. (b) Neither this contract nor any provision thereof may be waived, changed or cancelled except in writing. This contract shall also apply to and bind the heirs, distributees, legal representatives, successors and permitted assigns of the respeclive parties. The parties hereby authorize their respective attorneys to agree in writing to any changes in dates and time periods provided for in this contract. (c) Any singular word or term herein shall also be read as in the plural and the neuter shall include the masculine and feminine gender, whenever the sense of this contract may require it. (d) The captions in this contract are for convenience of reference only and in no way define, limit or describe the scope of this contract and shall not be considered in the interpretation of this contract or any provision hereot~ (e) This contract shall not be binding or effective until duly executed and delivered by Seller and Purchaser. (t) Seller and Purchaser shalI comply with IRC reporting requirements, if applicable. This subparagraph shall survive Closing, (g) Each party shall, at any time and from time to time, execute, acknowledge where appropriate and deliver such further instruments and documents and take such other action as may be reasonably requested by the other in order to carry out the intent and purpose of this contract. This subparagraph shall survive Closing. (h) This contract is intended for the exclusive benefit of the parties hereto and, except as otherwise expressly provided herein, shall not be for the benefit of, and shall not create any rights in, or be entbrceable by, any other person or entity. SEE RIDER ANNEXED HERETO IN WItTSS Wy~EI~OF, th~contract has been duly executed by the parties hereto. M,AROLD~'~L'~"'REESt~. JR., ~ |' Seller. ~ ~ T~E TOWN~ SOUTHOLD CHRIST1N~ REESE Attorney for Sellers: PAUL CAMINITI, ESQ. Attorney for Pumhasers: LISA C. KOMBRINK Address: 54075 Main Road Southold, New York 11971 Address: 235 Hampton Road Southampton, New York 11968 Tel.: (63 I)765-5900 Fax: Tel.: (631)287-3939 Fax: (631)287.3790 R;[DER TO CONTRACT OF SALE DATED ~~/, 200.~j BETWEEN HAROLD REESE, Jr., RONALD REESE AND CHRISTINE REESE, SELLERS AND TOWN OF SOUTHOLD, PURCHASER 29. Description. Supplementing ¶1 of the printed form, the area and dimensions of the premises are subject to such changes and modifications consistent with the area and dimensions as shown on a survey (see ¶32 herein). 30. Survey. Purchaser will have the Property surveyed by a licensed land surveyor to determine the actual acreage of the area for Town acquisition. The cost of the survey of the Property shall be paid by the Purchaser. 31. Environmental 1Inspection. Supplementing ¶12 of the printed portion hereof, Purchaser may conduct an environmental inspection of the Property. If Purchaser elects to do so, the Purchaser's obligations under this agreement are subject to and conditioned on the receipt of a report verifying that there are no negative environmental conditions, including but not limited to debris, equipment, abandoned vehicles or unused wells, or any hazardous substances on or in the premises, including structures thereon. The Seller shall have the right to remedy any defects raised by an environmental inspection, at his sole cost and expense, upon notice to the Town and within a reasonable period of time. In this event, Seller shall provide proof satisfactory to the Purchaser that such defects have been cured. If Seller elects not to remedy the defect(s), the Purchaser may cancel this Agreement and be reimbursed for the costs of title examination, survey and environmental inspection, with no further liability between the parties, or the Purchaser may proceed to closing. 32. Seller's Representations. Seller represents that: a) To the Seller's knowledge at no time since Seller acquired title, has the Property been used for the generation, storage, or disposal of hazardous substances, or as a landfill or other waste disposal site; b) there are no hazardous substances or toxic wastes in or on the Property that may affect the Property or any use thereof or that may support a claim or cause of action under common law or under any federal, state or local environmental.statute, regulation, ordinance or any other environmental regulatory requirement, nor' has any action been instituted for enforcement.of same; c) to the Seller's knowledge, there are currently no buried or underground storage or fuel tanks on the Property, and none were Io(~ated on the property; d) there are no actions, suits, claims or proceedings seeking money damages, injunctive relief, remedial action or any other remedy pending or threatened relating to a violation or non-compliance with any environmental law, or the disposal, discharge or release or solid wastes, pollutants or hazardous substances, or exposure to any chemical substances, noises or vibrations to the extent the same arise from the condition of the premises or Seller's ownership or use of the premises; e) neither the execution of this agreement, nor the closing of title, will violate any environmental law. 33. ]~ndemnification. Seller will defend, indemnify, and hold harmless the Purchaser against any and all damages, claims, losses, liabilities and expenses, including, without limitation, reasonable legal, consulting, engineering fees and otl~er costs and expenses which may arise out of 1) any inaccuracy or misrepresentation in any representation or warranty made by Seller in this agreement~ 2) the breach or non- performance of any covenants required by thi~-ag.r, eement to be performed by the Seller, prior to the closing of title herein; or 3) any action, suit, claim, or proceeding seeking money damages, injunctive relief, remedial action, or other remedy by reason of a violation or non-compliance with any environmental law, or the disposal or release of solid wastes, pollutants or hazardous substances, or exposure to any chemical substances, noises or vibrations to the extent they arise from the ownership, operation, and/or condition of the premises prior to the execution of the deed, This paragraph shall survive closing. 2 34. Public Disclosure Statement. The Seller, simultaneously with the, Execution and delivery of this Agreement, has also delivered the required verified public disclosure statement for filing with the Town Fiscal Officer. At the time of the closing, the Seller shall submit a sworn statement that there have been no changes in interest since the date of this Agreement. Any evidence of a conflict of interest or prohibited contractual relaUonshlp shall require approval of the contract and sale by the Supreme Court. 35. Binding Effect. This Agreement shall apply to and bind the heirs, distributes, legal representatives, successors and permitted assigns of the respective parties. 36. No Assignment. This contract may not be assigned by Seller without the written consent of Purchaser. 37. Defects lin 7~tle. The Purchaser shall notify the Seller in advance of the closing of any defects in title. Seller shall have a reasonable time to correct same, but nothing herein shall be construed so as to require Seller to bring any action or proceeding or to otherwise incur any expenses whatsoever to render the title Insurable or marketable. However, Purchaser may, at its option, accept such title as the Seller can convey without any abatement or diminution of the purchase price. Receipt of a complete title report, and any updates thereof, shall be deemed notice to Seller. 38. Additional Subject To Provisions. In addition to the "subject to" provisions listed in Paragraph 9 of the printed portion, the premises are also being conveyed subject to: a) Any state of facts an accurate survey may show, provided same do not render title unmarketable and uninsurable; b) Covenants, restrictions and easements of record provided same are not violated by any existing structures at the premises and present use thereof, and f0rther provided that same do not render title unmarketable and uninsurable; c) Variations between fences, curbs, retaining walls, hedges, eaves, if anY, and the record lines provided same do not exceed twelve (:~2") inches, and provided purchaser's title company does not raise any "rights of others", "out of possession" or similar exceptions. 39. Agents. It understood and agreed by the parties hereto that their respective 3 attorneys can by letter agreement, change, amend, modify and/or add to the terms and conditions of this contract, as agents of the respective parties and the respective parties shall be bound by same as if they had subscribed their signatures or initiale~l said subject matter. 40. Supplemental Seller's Representations. Supplementing ¶11 of the printed portion hereof, the following Seller's representations are added: a) Seller has no knowledge of, nor has Seller received any notice of, any litigation pending or threatened affecting title to the within premises; b) From the date of this Contract through the Closing, Seller shall not remove any soil from the subject premises or make any material alterations to the premises. 41. Removal Of Defects By Seller. Supplementing the provisions of ¶21(b) of the printed portion hereof and ¶37 of this rider and anything contained therein to the contrary notwithstanding, Seller expressly a\g~e~es...to remove the following Defect or Defects: any mechanic's lien or mechanic's liens, regardless of amount, and any other Defect or Defects which can be removed by payment of a liquidated sum or sums not exceeding in the aggregate $3,500.00, It being expressly understood and agreed that under no circumstances shall the Seller be obligated to commence any action or proceeding in order to remove any such other Defect or Defects. 42. Inconsistency. In the event of any inconsistency between the terms and provisions of this rider and the terms and provisions of the printed portion to which same is annexed, the terms and provision of this Rider shall control and be binding. 43. Town Board Approval. This contract and the closing contemplated herein is subject to approval by the Town Board following a public hearing and the approval of a resolution authorizing the acquisition. 44. Closing Costs. Purchaser, Town of Southold, is responsible for all closing costs related to this transaction, including but not limited to State Transfer Tax, Peconic Bay Region Tax (if applicable), except for Sellers' attorney's fees and any other expenses incurred by Sellers related to the delivery of title pursuant to the provisions of ¶21 and ¶4l. 45. Coastal Wetlands Grand DeclaraUon. The subject property encompasses 47.314 acres of the 9,950 acres of vacant land within the watershed of the Peconic Estuary which is recommended for protection in the Peconic Estuary Program's Critical Land Protection Strategy (CLPS). Given the amount and high value of the acreage which needs to be protected, it is essential to the success of the Peconic Estuary Program that funds from the U.S. Fish & Wildlife's Coastal Wetlands Grant program be made available to supplement local government funding. The $1,000,000 Coastal Wetlands Grant awarded through NYSDEC to Southold Town is essential to this acquisition. However, closing will not be contingent upon receipt of these funds. CHRTSTINE REESE,~SELLER TOWN OF SOUTHOLD, PURCHASER By~/OSHUA HORTON, SUPERVISOR C:anne/town of southold purchase co~tracts/reese rider 5 SCHEDULE B Grant Agreement UNITED STATES New Yo~k ~'~. ,/_ ~ DEPA~RT/v~NT OF THE ~TE~IOR (~) ~8 NO::. Division of Fe~ni Aid G~ A~REEMENT Coastal Wetlandl Conserva~on G~nt - Pec~lic Eatuary Pipe's Cove Acquisitt k. .) b.~, :~ , ~ ~ Private State Federal Total olS'lRIl~'n~: ~ Party % 8hare % S~re % G~t ~ Fl~ R~ ~ 0,0% 0.0% 0,~ ( 16 U.6.C. 77Z-7~k) ~ife R~t~n ~ 0.0% 0.0% 0,00 0S U.SC. ~r (sp~):~ 2,~7,~.00 67.4% 0.0% 1,0~,0~.~ TOTAL COST 2,067,000.00 0,00 %000,00000 3,067.000.00 The funds f .r~lp this grant will I~e ~onire~tnd to i~e Town of Southold b.y the NYSDEC, ~(,~ ~<- J~ ~ c,''~'~ :'-..;~7//~,S-j~.- . ~t~,~; E~P~ram I~me: ~ ...... Coasta~ Stat~ A~o~n: ~ ~ ~ Program ;n~e: __ ~ve _~ Deducli~ Fresh.ac: _~% Marine: ~ The ~te ag~ ~ exeou~ ~s g~nt in ~dan~ ~ ~ app~ia~ ~ a~e, the peatiest rul~ and regul~Uon~ of ~e 6~ of I~ ~edor ~ In ~e C~ of F~eml Regula~one, and ~he pmviou~lF appmv~ G~ P~sal to the extent I'r'~lle; Direclor, Mgmt and Budget Services eocomCme~ed by ~is Agreement. I~i'ATE A~ (Name and Addn~m): Ms. N~ ~c DiVot Ma~g~nt a~ 6u~t ~ N~ Y~ ~e De~e~ ~ En~men~l Co~gon 625 B~y N~y, New Y~k 12233~2~ OTHER GRANT PROVISIONS: NY C-4-L & C-4-L-1 Effective: March 11, 2005. There will be no reimbursement for costs (other than the recognized pro- agreement costs) h~arred prior to the effective dat~. Pending clarification of policy on level of cost accounting, the required level of cost accounting for this grant agreement will be at the grant agreement level, ~PECIAL GRANT CONDITIONS; 1, The State of New York and thc Town of Southold will ide, ntify in the deed, th~ Federal inte~st in ~he title of the real property and will simultaneously record with the deed a Notice of Grant Agreement wkich fmihcr de, scribes the purpose of thc acquisition and outlines the te~nns and conditions of thc grant; 2. Thc State of New York and the Town of Southold will also record a Notice of Grant ii}~'"i Agreement for the lands used as match in this grant. The State and To;~n wili ~lso insmict Registrar of Dcexls to make note in the margin of the original match land deeds referencing the Notice of Grant Agreement. ,~, :. SCHEDULE C Notice of Grant Agreement - Acquisition Parcel The State of New York, Department of Environmental Conservation, and its successors and assigns (hereinafter "Department") and the Town of Southold and its successors and assigns (hereinafter "Town") acknowledges that the above described property is acquired in part with federal funds received from the National Coastal Wetlands Grant Program administered by U.S. Fish and Wildlife Service, Division of Federal Assistance, its successors and assigns (hereinafter SERVICE) and that the property described is subject to all the terms and conditions of Grant Agreement Number C - 4 - L -1 (hereinafter Grant Agreement) between the Service and the Department. A copy of the Grant Agreement is kept on file at the offices of the Service, 300 Westgate Center Drive, Hadley, MA 01035-9589 and at the offices of the Department, 625 Broadway, Albany, New York 12233-5010. The Department and Town acknowledges that the real property, which is the subject of this Grant Agreement, is acquired for the approved purpose of long-term conservation of coastal wetland ecosystems, thereby preserving and protecting in perpetuity these multiple, interrelated land features which are critical to coastal fish, wildlife and their habitats. The Department and Town further acknowledges that the property will be administered for the long-term conservation of said lands and waters and the hydrology, water quality and fish and wildlife dependent thereon. The Department, as the Grant Recipient, and the Town as Subgrantee hereby acknowledges that it is responsible for exercising sufficient control over the property to ensure that the property is used and will continue to be used for the approved purposes for which it is acquired and that the property may not be conveyed or encumbered, in whole or in part, to any other party or for any other use, whatsoever, without the written consent of the Regional Director of the U.S. Fish and Wildlife Service. If the Town loses control of the property, control must be fully restored to the Town or the property must be replaced, within three years, with like property of equal value at current market prices and equal benefits. Further, if the property is used for activities which interfere with accomplishment of approved purposes, the violating activities must cease and any resulting adverse effects must be remedied. If the Department and the Town determines the property is no longer needed or useful for its original purpose and the Service concurs, the Town, may with the prior consent of the Service:, either (1) acquire title to another parcel of real property of equal value that serves the same approved purpose as the original property and to manage the newly acquired real property for same purposes specified in the original Grant Agreement, or (2) repay the Service, in cash, the proportionate federal share of funds invested in the original purchase price, or to repay the Service, in cash, the proportionate federal share of the current fair market value of the property, or any portion thereof, whichever is higher, or (3) as a last resort, transfer the subject property to the Service or to a third- party designated or approved by the Service. The Department, as Grant Recipient, and the Town as Subgrantee hereby confirms its obligations and responsibilities with regards to the acquired property pursuant to terms and conditions associated with Grant Agreement C - 4 - L - 1. SCHEDULE D Notice of Grant Agreement - Match Parcels The State of New York, Department of Environmental Conservation, and its successors and assigns (hereinafter DEPARTMENT) and the Town of Southold and its successors and assigns (hereinafter TOWN) acknowledges that the property described in Liber , Page , at the Suffolk County Clerk Records Office in , New York, is pledged as match for federal funds received from the National Coastal Wetlands Grant Program administered by U.S. Fish and Wildlife Service, Division of Federal Assistance, its successors and assigns (hereinafter SERVICE) and that the property described is subject to all the terms and conditions of Grant Agreement Number C - 4 - L -l(hereinafter Grant Agreement) between the Service and the Department. A copy of the Grant Agreement is kept on file at the offices of the Service, 300 Westgate Center Drive, Hadley, MA 01035-9589 and at the offices of the Department, 625 Broadway, Albany, New York 12233-5010. The Department and Town acknowledges that the mai property, which is pledged as match, was acquired for the approved purpose of long-term conservation of coastal wetland ecosystems, thereby preserving and protecting in perpetuity these multiple, interrelated land features which are critical to coastal fish, wildlife and their habitats. The Department and Town further acknowledges that the property will be administered for the long-term conservation of said lands and waters and the hydrology, water quality and fish and wildlife dependent thereon. The Department, as the Grant Recipient, and the Town as Subgrantee hereby acknowledges that it is responsible for exercising sufficient control over the property to ensure that the property is used and will continue to be used for the approved purposes for which it is acquired and that the property may not be conveyed or encumbered, in whole or in part, to any other party or for any other use, whatsoever, without the written consent of the Regional Director of the U.S. Fish and Wildlife Service. If the Town loses control of the property, control must be fully restored to the Town or the property must be replaced, within three years, with like property of equal value at current market prices and equal benefits. Further, if the property is used for activities which interfere with accomplishment of approved purposes, the violating activities must cease and any resulting adverse effects must be remedied. If the Department and the Town determines the property is no longer needed or useful for its original purpose and the Service concurs, the Town, may with the prior consent of the Service:, either (1) acquire title to another parcel of real property o fequal value that serves the same approved purpose as the original property and to manage the newly acquired real property for same purposes specified in the original Grant Agreement, or (2) repay the Service, in cash, the proportionate matching share of the current fair market value of the property, or any portion thereof, whichever is higher, or (3) as a last resort, transfer the subject property to the Service or to a third-party designated or approved by the Service. The Department, as Grant Recipient, and the Town as Subgrantee hereby confirms its obligations and responsibilities with regards to the acquired property pursuant to terms and conditions associated with Grant Agreement C - 4 - L - 1. APPENDIX A Standard Clauses for All New York State Contracts The parties to the attached contract, license, lease, amendment or other agreement of any kind (hereinafter, "the contract" or "this contract") agree to be bound by the following clauses which are hereby made a part of the contract (the word "Contractor" herein refers to any party other than the State, whether a contractor, licenser, licensee, lessor, lessee or any other party): 4. WORKERS' COMPENSATION BENEFITS. In accordance with Section 142 of the State Finance Law, this contract shall be void and of no force and effect unless the Contractor shall provide and maintain coverage dudng the life of this contract for the benefit of such employees as ara required to be covered by the provisions of the Workers' Compensation Law. 1. EXECUTORY CLAUSE. In accordance with Section 41 of the State Finance Law, the State shall have no liability under this contract to the Contractor or to anyone else beyond funds appropriated and available for this contract. 2. NON-ASSIGNMENT CLAUSE. In accordance with Section 138 of the State Finance Law, this contract may not be assigned by the Contractor or its right, title or interest therein assigned, transferred, conveyed, sublet or otherwise disposed of without the previous consent, in writing, of the State and any attempts to assign the contract without the State's written consent are null and void. The Contractor may, however, assign its right to receive payment without the State's prior wdtten consent unless this contract concerns Certificates of Participation pursuant to Article 5-A of the State Finance Law. 3. COMPTROLLER'S APPROVAL. in accordance with Section 112 of the State Finance Law (or, if this contract is with the State University or City University of New York, Section 355 or Section 6218 of the Education Law), if this contract exceeds $15,000 (or the minimum thresholds agreed to by the Office of the State Comptroller for certain S.U.N.Y. and C.U.N.Y. contracts), or if this is an amendment for any amount to a contract which, as so amended, exceeds said statutory amount, or if, by this contract, the State ag rees to give something other than money when the value or reasonably estimated value of such consideration exceeds $10,000, it shall not be valid, effective or binding upon the State until it has been approved by the State Comptroller and filed in his office. Comptroller's approval of contracts let by the Office of General Services is raquirad when such contracts exceed $30,000 (State Finance Law Section 163.6.a). 5. NON-DISCRIMINATION REQUIREMENTS. To the extent required by Article 15 of the Executive Law (also known as the Human Rights Law) and all other State and Federal statutory and constitutional non-discrimination provisions, the Contractor will not discriminate against any employee or applicant for employment because of race, creed, color, sex, national origin, sexual orientation, age, disability, genetic predisposition or carrier status, or marital status. Furthermore, in accordance with Section 220-e of the Labor Law, if this is a contract for the construction, alteration or repair of any public building or public work or for the manufacture, sale or distribution of materials, equipment or supplies, and to the extent that this contract shall be performed within the State of New York, Contractor agrees that neither it not its subcontractors shall, by reason of race, creed, color, disability, sex, or national origin: (a) discriminate in hiring against any New York State citizen who is qualified and available to perform the work; or (b) discriminate against or intimidate any employee hired for the performance of work under this contract, If this is a building service contract as defined in Section 230 of the Labor Law, then, in accordance with Section 239 thereof, Contractor agrees that neither it nor its subcontractors shall by reason of race, creed, color, national origin, age, sex or disability: (a) discriminate in hiring against any New York State citizen who is qualified and available to perform the work; or (b) discriminate against or intimidate any employee hired for the performance of work under this contract. Contractor is subject to fines of $50.00 per person per day for any violation of Section 220-e or Section 239 as well as possible termination of this contract and forfeiture of all moneys due hereunder for a second or subsequent violation. 6. WAGE AND HOURS PROVISIONS. If this is a public work contract covered by Article 8 of the Labor Law or a building service contract covered by Article 9 thereof, neither Contractor's employees nor the employees of its subcontractors may be required or permitted to work more than the number of hours or days stated in said statutes, except as otherwise provided in the Labor Law and as set forth in prevailing wage and supplement schedules issued by the State Labor Department. Furthermore, Contractor and its subcontractors must pay at least the prevailing wage rate and pay or provide the prevailing supplements, including the premium rates for overtime pay, as determined by the State Labor Department in accordance with the Labor Law. 7. NON-COLLUSIVE BIDDING CERTIFICATION E. In accordance with Section 139-d of the State Finance Law, if this contract was awarded based upon the submission of bids, Contractor warrants, under penalty of perjury, that its bid was arrived at independently and without collusion aimed at restricting competition. Contractor further warrants that, at the time Contractor submitted its bid, an authorized and responsible person executed and delivered to the State a non-collusive bidding certification on Contractor's behalf. 8. INTERNATIONAL BOYCO'I-F PROHIBITION. In accordance with Section 220-f of the Labor Law and Section 139-h of the State Finance Law, if this contract exceeds $5,000, the Contractor agrees, as a matedal condition of the contract, that neither the Contractor nor any substantially owned or affiliated person, firm, partnership or corporation has participated, is participating, or shall participate in an international boycott in violation of the federal Export Administration Act of 1979 (50 USC App. Sections 2401 et seq.) or regulations thereunder. If such Contractor, or any of the aforesaid affiliates of Contractor, is convicted or is otherwise found to have violated said laws or regulations upon the final determination of the United States Commerce Department or any other appropriate agency of the United States subsequent to the contract's execution, such contract, amendment or modification thereto shall be rendered forfeit and void. The Contractor shall so notify the State Comptroller within five (5) business days of such conviction, determination or disposition of appeal (2NYCRR 105.4). 9~ SET-OFF RIGHTS. The State shall have all of its common law, equitable and statutory rights of set-off. These rights shall include, but not be limited to, the State's option to withhold for the purposes of setoff any moneys due to the Contractor under this contract up to any amounts due and owing to the State with regard to this contract, any other contract with any State department or agency, including any contract for a term commencing pdor to the term of this contract, plus any amounts due and owing to the State for any other reason including, without limitation, tax delinquencies, fee delinquencies or monetary penalties relative thereto. The State shall exercise its set-off dghts in accordance with normal State practices including, in cases of set-off pursuant to an audit, the finalization of such audit by the State agency, its representatives, or the State Comptroller. 10. RECORDS. The Contractor shall establish and maintain complete and accurate books, records, documents, accounts and otherevidence directly pertinent to performance under this contract (hereinafter, collectively, "the Records"). The Records must be kept for the balance of the calendar year in which they were made and for six (6) additional years thereafter. The State Comptroller, the Attorney General and any other person or entity authorized to conduct an examination, as well as the agency or agencies involved in this contract, shall have access to the Records dudng normal business hours at an office of the Contractor within the State of New York or, if no such office is ava ila ble, at a mutually agreeable and reasonable venue within the State, for the term specified above for the purposes of inspection, auditing and copying. The State shall take reasonable steps to protect from public disclosure any of the Records which are exempt from disclosure under Section 87 of the Public Officers Law (the "Statute") provided that: (i) the Contractor shall timely inform an appropriate State official, in wdting, that said records should not be disclosed; and (ii) said records shall be sufficiently identified; and (iii) designation of said records as exempt under the Statute is reasonable. Nothing contained herein shall diminish, or in any way adversely affect, the State's dght to discovery in any pending or future litigation 11. IDENTIFYING INFORMATION AND PRIVACY NOTIFICATION. (a) FEDERAL EMPLOYER IDENTIFICATION NUMBER and/or FEDERAL SOCIAL SECURITY NUMBER. All invoices or New York State standard vouchers submitted for payment for the sale of goods or services or the lease of real or personal property to a New York State agency must include the payee's identification number, i.e., the seller's or lessor's identification number. The number is either the payee's Federal employer identification number or Federal social secudty number, or both such numbers when the payee has both such numbers. Failure to include this number or numbers may delay payment. Where the payee does not have such number or numbers, the payee, on its invoice or New York State standard voucher, must give the reason or reasons why the payee does not have such number or numbers. (b) PRIVACY NOTIFICATION. (1) The authority to request the above personal information from a seller of goods or services or a lessor of real or personal property, and the authority to maintain such information, is found in Section 5 of the State Tax Law. Disclosure of this information by the seller or lessor to the State is mandatory. The principal purpose for which the information is collected is to enable the State to identify individuals, businesses and others who have been delinquent in filing tax returns or may have understated their tax liabilities and to generally identify persons affected by the taxes administered by the Commissioner of Taxation and Finance. The information will be used for tax administration purposes and for any other purpose authorized by law. (2) The personal information is requested by the purchasing unit of the agency contracting to purchase the goods or services or lease the real or personal property covered by this contract or lease. The information is maintained in New York State's Central Accounting System by the Director of Accounting Operations, Office of the State Comptroller, AESOB, Albany, New York 12236. 12. EQUAL EMPLOYMENT OPPORTUNITIES FOR MINORITIES AND WOMEN. In accordance with Section 312 of the Executive Law, if this contract is: (i) a written agreement or purchase order instrument, providing for a total expenditure in excess of $25,000.00, whereby a contracting agency is committed to expend or does expend funds in return for labor, services, supplies, equipment, materials or any combination of the foregoing, to be performed for, or randerad or furnished to the contracting agency; or (ii) a wdtten agreement in excess of $100,000.00 whereby a contracting agency is committed to expend or does expend funds for the acquisition, construction, demolition, replacement, major repair or renovation of real property and improvements thereon; or (iii) a written agreement in excess of $100,000.00 whereby the owner of a State assisted housing project is committed to expend or does expend funds for the acquisition, construction, demolition, replacement, major repair or renovation of real property and improvements thereon for such project, then: (a) The Contractor will not discriminate against employees or applicants foremployment because of race, creed, color, national origin, sex, age, disability or marital status, and will undertake or continue existing programs of affirmative action to ensure that minority group members and women ara afforded equal employment opportunities without discrimination. Affirmative action shall mean recruitment, employment, job assignment, promotion, upgradings, demotion, transfer, layoff, or termination and rates of pay or other forms of compensation; (b) at the request of the contracting agency, the Contractor shall request each employment agency, labor union, or authorized representative of workers with which it has a collective bargaining or other agreement or understanding, to furnish a written statement that such employment agency, labor union or representative will not discriminate on the basis of race, creed, color, national origin, sex, age, disability or marital status and that such union or representative will affirmatively cooperate in the implementation of the contractor's obligations herein; and (c) the Contractor shall state, in all solicitations or advertisements for employees, that, in the performance of the State contract, all qualified applicants will be afforded equal employment opportunities without discrimination because of race, creed, color, national origin, sex, age, disability or marital status. Contractor will include the previsions of "a", "b", and "c" above, in every subcontract over $25,000.00 for the construction, demolition, replacement, major repair, renovation, planning or design of real property and improvements thereon (the '~/Vork") except where the Work is for the beneficial use of the Contractor. Section 312 does not apply to: (i) work, goods or services unrelated to this contract; or (ii) employment outside New York State; or (iii) banking services, insurance policies or the sale of securities. The State shall consider compliance by a contractor or subcontractor with the requirements of any federal law concerning equal employment opportunity which effectuates the purpose of this section. The contracting agency shall determine whether the imposition of the requirements of the provisions hereof duplicate or conflic{ with any such federal law and if such duplication or conflict exists, the contracting agency shall waive the applicability of Section 312 to the extent of such duplication or conflict. Contractor will comply with all duly promulgated and lawful rules and regulations of the Governor's Office of Minority and Women's Business Development pertaining hereto. 13. CONFLICTING TERMS. In the event of a conflict between the terms of the contract (including any and all attachments thereto and amendments thereof) and the terms of this Appendix A, the terms of this Appendix A shall control. 14. GOVERNING LAW. This contract shall be governed by the laws of the State of New York except where the Ferieral supremacy clause requires otherwise. 15. LATE PAYMENT. Timeliness of payment and any interest to be paid to Contractor for late payment shall be governed by Article 11-A of the State Finance Law to the extent required by law. 16. NO ARBITRATION. Disputes involving this contract, including the breach or alleged breach thereof, may not be submitted to binding arbitration (except where statutorily authorized), but must, instead, be heard in a court of competant jurisdiction of the State of New York. 17. SERVICE OF PROCESS. In addition to the methods of service allowed by the State Civil Practice Law & Rules ("CPLR"), Contractor hereby consents to service of precess upon it by registered or certified mail, return receipt requested. Service hereunder shall be complete upon Contractor's actual receipt of process or upon the State's receipt of the return thereof by the United States Postal Service as refused or undeliverable. Contractor must promptly notify the State, in writing, of each and every change of address to which service of process can be made. Service by the State to the last known address shall be sufficient. Contractor will have thirty (30) calendar days afferservice hereunder is complete in which to respond. 18. PROHIBITION ON PURCHASE OF TROPICAL HARDWOODS. The Contractor certifies and warrants that all wood products to be used under this contract award will be in accordance with, but not limited to, the specifications and previsions of State Finance Law °165. (Use of Tropical Hardwoods) which prohibits purchase and use of tropical hardwoods, unless specifically exempted, by the State or any governmental agency or political subdivision or public benefit corporation. Qualification for an exemption under this law will be the responsibility of the contractor to establish to meet with the approval of the State. In addition, when any portion of this contract involving the use of woods, whether supply or installation, is to be performed by any subcontractor, the prime Contractor will indicate and certify in the submitted bid proposal that the subcontractor has been informed and is in compliance with specifications and provisions regarding use of tropical hardwoods as detailed in ~'165 State Finance Law. Any such use must meet with the approval of the State; otherwise, the bid may not be considered responsive. Under bidder certifications, proof of qualification for exemption will be the responsibility of the Contractor to meet with the approval of the State. 19. MACBRIDE FAIR EMPLOYMENT PRINCIPLES. In accordance with the MacBride Fair Employment Principles (Chapter 807 of the Laws of 1992), the Contractor hereby stipulates that the Contractor either (a) has no business operations in Northern Ireland, or (b) shall take lawful steps in good faith to conduct any business operations in Northern Ireland in accordance with the MacBride Fair Employment Principles (as described in Section 165 of the New York State Finance Law), and shall permit independent monitoring of compliance with such principles. 20. OMNIBUS PROCUREMENT ACT OF 1992. It is the policy of New York State to maximize opportunities for the participation of New York State business enterprises, including minority and women-owned business enterprises as bidders, subcontractors and suppliers on its procurement contracts. Information on the availability of New York State subcontractors and suppliers is available from: NYS Department of Economic Development Division for Small Business 30 South Pearl St - 7th Floor Albany, New York 12245 Telephone: 518-292-5220 A directory of certified minodty and women-owned business enterprises is available from: NYS Department of Economic Development Division of Minodty and Women's Business Development 30 South Pearl St - 2nd Floor Albany, New York 12245 http:/N/ww, empire.state.ny.us The Omnibus Procurement Act of 1992 requires that by signing this bid proposal or contract, as applicable, Contractors certify that whenever the total bid amount is greater than $1 million: (a) The Contractor has made reasonable efforts to encourage the participation of New York State Business Enterprises as suppliers and subcontractors, including certified minodty and women-owned business enterprises, on this project, and has retained the documentation of these efforts to be provided upon request to the State; (b) The Contractor has complied with the Federal Equal Opportunity Act of 1972 (P.L. 92-261), as amended; (c) The Contractor agrees to make reasonable efforts to provide notification to New York State residents of employment opportunities on this project through listing any such positions with the Job Servico Division of the New York State Department of Labor, or providing such notification in such manner as is consistent with existing collective bargaining contracts or agreements. The Contractor agrees to document these efforts and to provide said documentation to the State upon request; and (d) The Contractor acknowledges notice that the State may seek to obtain offset credits from foreign countries as a result of this contract and agrees to cooperate with the State in these efforts. 21. RECIPROCITY AND SANCTIONS PROVISIONS. Bidders are hereby notified that if their principal place of business is located in a country, nation, province, state or political subdivision that penalizes New York State vendors, and if the goods or services they offer will be substantially produced or performed outside New York State, the Omnibus Procurement Act 1994 and 2000 amendments (Chapter 684 and Chapter 383, respectively) require that they be denied contracts which they would otherwise obtain. NOTE: As of May 15, 2002, the list of discriminatory jurisdictions subject to this provision includes the states of South Carolina, Alaska, West Virginia, Wyoming, Louisiana and Hawaii. Contact NYS Department of Economic Development for a current list of jurisdictions subject to this provision. 22. PURCHASES OF APPAREL. In accordance with State Finance Law 162 (4-a), the State shall not purchase any apparel from any vendor unable or unwilling to certify that: (i) such apparel was manufactured in compliance with all applicable labor and occupational safety laws, including, but not limited to, child labor laws, wage and hours laws and workplace safety laws, and (ii) vendor will supply, with its bid (or, if not a bid situation, prior to or at the time of signing a contract with the State), if known, the names and addresses of each subcontractor and a list of all manufacturing plants to be utilized by the bidder. May, 2003 APPENDIX B Standard Clauses for All New York State Department of Environmental Conservation Contracts The parties Io the attached contract, license, lease, gram, amendment or olher agreement of any kind (hereinafter "lhe contract" or "this contract") agree to be bound by the following clauses which are hereby made a part of the contract. The word "Contractor" herein refers to any party to the contract, other than the New York State Department of Environmental Conservation (hereinafter "Department"). I. Postponement, suspension, abandonment or termination by the Department: The Department shall have the right to postpone, suspend, abandon or terminate this contract, and such actions shall in no event be deemed a breach of contract. ]n the event of any termination, postponement, delay, suspension or abandonment, the Contractor shall immediately stop work. take steps to incur no additional obligations, and to limit further expenditures. Within 15 days of receipt of notice, the Contractor shall deliver to the Department all data, reports, plans, or other documentation related to the performance of this contract, including but not limited to source codes and specifications, guarantees, warranties, as-built plans and shop drawings. ]n any of these events, the Department shall make selllement with the Contractor upon an equitable basis as determined by the Department which shall fix the value of the work which was performed by the Contractor prior to the postponement, suspension, abandonment or termination of this contract. This clause shall not apply to this contract if the contract contains other provisions applicable to postponement, suspension or termination of the contract. 11. Indemnification and Holdharmless The Contraclor agrees that it will indemnify and save harmless the Department and the State of New York from and against all losses from claims, demands, payments, suits, actions, recoveries and judgments of every nature and description brought or recovered against it by reason of any omission or tortious act of the Contractor, its agents, employees, suppliers or subcontractors in the performance of this conlract. The Department and the State of New York may retain such monies from the amount due Contractor as may be necessary to satisfy any claim for damages, costs and the like, which is asserted against the Department and/or the State of New York. 111. Conflict of Interest (a) Oreanizational Conflict of Interest. To the best of the Contractor's knowledge and belief, the Contractor warrants that there are no relevant facts or circumstances which could give rise to an organizational conflict of interest, as herein defined, or that the Contractor has disclosed all such relevant information to the Department. (1) An organizational conflict of interest exists when the nature of the work to be performed under this contract may, without some restriction on future activities, impair or appear to impair the Contractor's objectivity in performing the work for the Department. (2) The Contractor agrees that if an actual, or potential organizational conflict of interest is discovered at any time after award, whether before or during performance, the Contractor will immediately make a full disclosure in writing to the Department. This disclosure shall include a description o factions which the Contractor has taken or proposes to take, after consultation with the Department, to avoid, mitigate, or minimize the actual or potential conflict. (3) To the extent that the work under this contract requires access to personal, proprietary or confidential business or financial data of persons or other companies, and as long as such data remains proprietary or confidential, the Contractor shall protect such data from unauthorized use and disclosure and agrees not to use it to compete with such companies. (b) Personal Conflict of Interest: The following provisions with regard to management or professional level employee personnel performing under this contract shall apply until the earlier of the termination date of the affected employee(s) or the duration of the contract. (1) A personal conflict of interest is defined as a relationship of an employee, subcontractor employee, or consultant with an entity that may impair or appear to impair the objectivity of the employee, subcontractor employee, or consultant in performing the contract work. The Contractor agrees to notify the Department immediately of any actual, or potential personal conflict of interest with regard to any such person working on or having access to information regarding this contract, as soon as Contractor becomes aware of such conflict. The Department will notify the Contractor of the appropriate action to be taken. (2) The Contractor agrees to advise all management or professional level employees involved in the work of this contract, that they must report any personal conflicts App. B 4/17/00 Page 1 of interest to the Contractor. Fhe Contractor must then advise the Department which will advise the Contractor of the appropriate action to be taken. (3) Unless waived by the Department, the Contractor shall certify annually that. to the best of the Contractor's knowledge and belief, all actual, apparent or potential conflicts of interest, both personal and organizational, as defined herein, have been reported to the Department. Such certification musl be signed by a senior executive of the Contractor and submiiled in accordance with instructions provided by the Department. Along with the annual certification, the Contractor shall also submit an update of any changes in any conflict of interest plan submitted with its proposal for this contract. The initial certification shall cover the one-year period from the date of contract award, and all subsequenl certifications shall cover successive annual periods thereafter. The certification is to be submitted no later than 45 days after the close of the previous certification period covered. (4) In performing this contract, the Contractor recognizes that its employees may have access to data. either provided by the Department or first generated durJt~g contract performance, of a sensitive nature which should not be released without Department approval. If this situation occurs, the Contractor agrees to obtain confidentiality agreements fi.om all affected employees working on requirements under this contract including subcontractors and consultants. Such agreements shall contain provisions which stipulate that each employee agrees not to disclose, either in whole or in part, to any entity external to the Department, Department of Health or the New York State Department of Law, any information or data provided by the Department or first generated by the Contractor under this contract, any site- specific cost information, or any enforcement strategy without first obtaining the written permission of the Department. If a Contractor, through an employee or otherwise, is subpoenaed to testify or produce documents. which could result in such disclosure, the Contractor must provide immediate advance notification to the Department so that the Department can authorize such disclosure or have the opportunity to take action to prevent such disclosure. Such agreements shall be effective for the life of the contract and for a period of five (5) years after completion of the contract. (c) Remedies - The Depart~nent may lerminate this contract in whole or in part, if it deems such termination necessary to avoid an organizational or personal conflict of interest, or an unauthorized disclosure of information. If the Contractor fails to make required disclosures or misrepresents relevant information to the Department, the Department may terminate the contract, or pursue such other remedies as may be permitted by the terms of Clause I of this Appendix or other applicable provisions of this contract regarding termination. (d) The Contractor will be ineligible to make a proposal or bid on a contract for which the Contractor has developed the statement of work or the solicitation package (e) The Contractor agrees to insert in each subcontract or consultant agreement placed hereunder (except for subcontracts or consultant agreements for well drilling, fence erecting, plumbing, utility hookups, security guard services, or electrical services) provisions which shall conform substantially to the language of this clause, including this paragraph (e), unless otherwise authorized by the Department. If this is a contract for work related to action at au inactive hazardous waste site, the following paragraph shall apply to those Contractors whose work requires the application of professional judgment: It does not apply to construction contracts. (O Due to the scope and nature of this contract, the Contractor shall observe the following restrictions on future hazardous waste site contracting for the duration of the contract. (1) The Contractor, during the life of the work assignment and for a period of three (3) years after the completion of the work assignment, agrees not to enter into a contract with or to represent any party with respect to any work relating to remedial activities or work pertaining to a site where the Contractor previously performed work for the Department under this contract without the prior written approval of the Department. (2) The Contractor agrees in advance that if any bids/proposals are submitted for any work for a third party that would require written approval of the Department prior to entering into a contract because of the restrictions of this clause, then the bids/proposals are submitted at the Contractor's own risk, and no claim shall be made against the Department to recover bid/proposal costs as a direct cost whether the request for authorization to enter into the contract is denied or approved. IV. Requests for Payment All requests for payment by the Contractor must be submitled on forms supplied and approved by the Department. Each payment request must contain such items of information and supporting documentation as are required by the Department, and shall be all-inclusive for the period of time covered by the payment request. App. B 4/17/00 Page 2 V. Compliance with Federal requirements To the extent that federal funds are provided to the Contractor or used in paying the Contractor under this contract, the Contractor agrees that it will comply with all applicable federal laws and regulations, including but not limited to those laws and regulations under which the Federal funds were authorized. The Contractor further agrees to insert in any subcontract hereunder, provisions which shall conform substantially to the language of this clause. VI. Independent Contractor The Contractor shall have the status of an independent contractor. Accordingly, the Contractor agrees that it will conduct itself in a manner consistent with such status, and that it will neither hold itself out as, nor claim to be, an officer or employee of the Department by reason of this contract. It further agrees that it will not make any claim, demand or application to the Department for any right or privilege applicable to an officer or employee of the Department including but not limited to worker's compensation coverage, unemployment insurance benefits, social security coverage, or retirement membership or credit. VII. Article 15-A Requirements The terms contained in this clause shall have the definitions as given in, and shall be construed according to the intent of Article 15-A of the Executive Law, 5 NYCRR Part 140, et. seq., Article 52 of the Environmental Conservation Law and 6 NYCRR Part 615, et. seq., as applicable, and any goals established by this clause are subject to the intent of such laws and regulations. (a) If the maximum contract price herein equals or exceeds $25,000, and this contract is for labor, services, supplies, equipment, or materials; or (b) If the maximum contract price herein equals or exceeds $100,000 and this contract is for the acquisition, construction, demolition, replacement, major repair or renovation of real property and improvements thereon; then (c) The affmmative action provisions and equal employment opportunity provisions contained in this paragraph and paragraphs (d) and (e) of this clause shall be applicable within the limitations established by Executive Law §§312 and 313 and the applicable regulations. (1) The Contractor is required to make good faith efforts to subcontract at least N/A of the dollar value of this contract to Minority Owned Business Enterprises (MBEs) and at least N/A of such value to Women Owned Business Enterprises (WBEs). (2) The Contractor is required to make good faith efforts to employ or contractually require any Subcontractor with whom it contracts to make good faith efforts to employ minority group members for at least N/A of, and women for at least N/A of, the workforce hours required to perform the work under this contract. (3) The Contractor is required to make good faith efforts to solicit the meaningful participation by enterprises identified in the NYS Directory of Certified Businesses provided by: Empire State Development Corp. Div. Minority & Women's Business Development 30 South Pearl Street Albany, New York 12245 Phone: (518) 292-5250 Fax: (518) 292~5803 and Empire State Development Corp. 633 Third Avenue New York, NY 10017 Phone: (212) 803-2414 Fax: (2 t2) 803-3223 internet: www.empire.state.ny.us\esd.htm (d) The Contractor agrees to include the provisions set forth in paragraphs (a), (b) and (c) above and paragraphs (a), (b), and (c) of clause t2 of Appendix A in every subcontract in such a manner that the provisions will be binding upon each Subcontractor as to work under such subcontract. For the purpose of this paragraph, a "subcontract" shall mean an agreement providing for a total expenditure in excess of $25,000 for the construction, demolition, replacement, major repair, renovation, planning or design of real property and improvements thereon in which a portion of the Contractor's obligation under a State contract is undertaken or assumed. (e) The Contractor is required to make good faith efforts to utilize the MBE/WBEs identified in the utilization plan to the extent indicated in such plan, and otherwise to implement it according to its teru~s. The Contractor is requested to report on such implementation periodically as provided by the contract, or annually, whichever is more frequent. VIII. Compliance with applicable laws (a) Prior to the commencement of any work under this contract, the Contractor is required to meet all legal requirements necessary in the performance of the contract. This includes but is not limited to compliance with all applicable federal, state and local laws and regulations promulgated thereunder. It is the App. B 4/17/00 Page 3 Contractor's responsibility to obtain any necessary permits, or other authorizations. By signing this contract, the Contractor affirmatively represents that it has complied with said laws, unless it advises the Department otherwise, in writing. The Depamnent signs this contract in reliance upon this representation. (b) During the term of this contract, and any extensions thereof, the Contractor must remain in compliance with said laws. A failure to notify the Department of noncompliance of which the Contractor was or should have been aware, may be considered a material breach of this contract. IX. Dispute Resolution The parties agree to the following steps, or as many as are necessary to resolve disputes between the Department and the Contractor. (a) The Contractor specifically agrees to submit, in the first instance, any dispute relating to this contract to the designated individual, who shall render a written decision and furnish a copy thereof to the Contractor. (1) The Contractor must request such decision in writing no more than fifteen days after it knew or should have known of the facts which are the basis of the dispute. (2) The decision of the designated individual shall be the final agency determination, unless the Contractor files a written appeal of that decision with the designated appeal individual ("DAI") within twenty days of receipt of that decision. (b) Upon receipt of the written appeal, the DAI, wilt review the record and decision. Following divisional procedures in effect at that time, the DAI will take one of the following actions, with written notice to the Contractor. (1) Remand the matter to the program staff for further negotiation or information Wit is determined that the mailer is not ripe for review; or (2) Determine that there is no need for further action, and that the determination of the designated individual is confirmed; or (3) Make a determination on the record as it exists. (c) The decision of the DAI shall be the final agency decision unless the Contractor files a written appeal of that decision with the Chair of the Contract Review Committee ("CRC") within twenty days of receipt of that decision. The designated individual to hear disputes is: John Keating, Superintendent NYS Department of Environmental Conservation Bureau of Real Property 625 Broadway, yh Floor AIbnay, New York 12233-4256 (518) 402-9442 The designated appeal individual to review decisions is: S. McCrea Burnham, Special Assistant NYS Department of Environmental Conservation Division of Lands and Forests 625 Broadway, 5~h Floor Albany New York 12233-4250 (518) 402-9205 The Chair of the Contract Review Committee is: Department of Environmental Conservation Nancy W. Lussier, Chair Contract Review Commiilee 625 Broadway, Iffh Floor Albany, NY 12233-5010 Telephone: (5 t 8) 402-9228 (d) Upon receipt of the written appeal, the Chair of the CRC, in consultation with the members of the CRC and the Office of General Counsel, will take one of the following actions, or a combination thereof, with written notice to the Contractor. (1) Remand the matter to program staff for additional fact finding,negotiation, or other appropriate action; or (2) Adopt the decision of the DAI; or (3) Consider the mailer for review by the CRC in accordance with its procedures. (e) Following a decision to proceed pursuant to (d) 3, above, the Chair of the CRC shall convene a proceeding in accordance with the CRC's established contract dispute resolution guidelines. The proceeding will provide the Contractor with an opportunity to be heard. (f) Following a decision pursuant to (d) 2 or (d) 3, the CRC shall make a wriilen recommendation to the Assistant Commissioner for Administration who shall render the final agency determination. (g) At any time during the dispute resolution process, and upon mutual agreement of the parties, the Office of Hearings and Mediation Services (OHMS) may be App. B 4/17/00 · Page 4 requested to provide mediation services or other appropriate means to assist in resolving the dispute. Any findings or recommendations made by the OHMS will not be binding on either party. (h) Final agency determinations shall be subject to review only pursuant to Article 78 of the Civil Practice Law and Rules. (i) Pending final determination of a dispute hereunder, the Contractor shall proceed diligently with the performance of the Contract in accordance with the decision of the designated individual. Nothing in this Contract shall he construed as making final the decision of any administrative officer upon a question of law. 0) (1) Notwithstanding the foregoing, at the option of the Contractor, the following shall be subject to review by the CRC: Disputes arising under Article 15-A of the Executive Law (Minority and Women Owned Business participation), the Department's determination with respect to the adequacy of the Contractor's Utilization Plan, or the Contractor's showing of good faith efforts to comply therewith. A request for a review before the CRC should be made, in writing, within twenty days of receipt of the Department's determination. (2) The CRC will promptly convene a review in accordance with Article 15-A of the Executive Law and the regulations promulgated thereunder. X. Labor Law Provisions (a) When applicable, the Contractor shall post, in a location designated by the D~partmant, a copy of the New York State Department of Labor schedules of prevailing wages and supplements for this project, a copy of all re-determinations of such schedules for the project, the Workers' Compensation Law Section 51 notice, all other notices required by law to be posted at the site, the Department of Labor notice that this project is a public work project on .which each worker is entitled to receive the prevailing wages and supplements for their occupation, and all other notices which the Department directs the Contractor to post. The Contractor shall provide a surface for such notices which is satisfactory to the Department. The Contractor shall maintain such notices in a legible manner and shall replace any notice or schedule which is damaged, defaced, illegible or removed for any reason. Contractor shall post such notices before commencing any work on the site and shall maintain such notices until all work on the site is complete. (b) When appropriate, contractor shall distribute to each worker for this Contract a notice, in a form provided by the Department, that this project is a public work project on which each worker is entitled to receive the prevailing wage and supplements for the occupation at which he or she is working. Worker includes employees of Contractor and all Subcontractors and all employees of suppliers entering the site. Such notice shall be distributed to each worker before they start performing any work of this contract. At the time of distribution, Contractor shall have each worker sign a statement, in a form provided by the Department, certifying that the worker has received the notice required by this section, which signed statement shall be maintained with the payroll records required by the following paragraph (c). (c) Contractor shall maintain on the site the original certified payrolls or certified transcripts thereof which Contractor and all of its Subcontractors are required to maintain pursuant to the New York Labor Law Section 220. Contractor shall maintain with the payrolls or transcripts thereof, the statements signed by each worker pursuant to paragraph (b). (d) Within thirty days of issuance of the first payroll, and every thirty days thereafter, the Contractor and every subcontractor must submit a transcript of the original payroll to the Department, which transcript must be subscribed and affirmed as true under penalty of perjury. XI. Offset In accordance with State Law, the Department has the authority to administratively offset any monies due it fi.om the Contractor, fi.om payments due to the Contractor under this contract. The Department may also (a) assess interest or late payment charges, and collection fees, if applicable; (b) charge a fee for any dishonored check; (c) refuse to renew certain licenses and permits. XlI. Tax Exemption Pursuant to Tax Law Section 1116, the State is exempt from sales and use taxes. A standard state voucher is sufficient evidence thereofi For federal excise taxes, New York's registration Number 14740026K covers tax-free transactions under the Internal Revenue Code. XIII. Litigation Support In the event that the Department becomes involved in litigation related to the subject mailer of this contract, the Contractor agrees to provide background support and other litigation support, including but not limited to depositions, appearances, and testimony. Compensation will be negotiated and based on rates established in the contract, or as may otherwise be provided in the contract. App. B 4/17/00 Page 5 XIV. Equipment Any equipment purchased with funds provided under this contract, shall remain the propemd of the Department, unless otherwise provided in the contract. The Contractor shall be liable for all costs for maintaining the property in good, usable condition. It shall be returned to the Department upon completion of the contract, in such condition, unless the Department elects to sell the equipment to the Contractor, upon mutually agreeable terms. XV. Inventions or Discoveries Any invention or discovery first made in performance of this Contract shall be the property of the Department, unless otherwise provided in the contract. The Contractor agrees to provide the Department with any and all materials related to this property. At the Department's option, the Contractor may be granted a non-exclusive license. XVI. Patent and Copyright Protection If any patented or copyrighted material is involved in or results from the performance'of this Contract, this Article shall apply. (a) The Contractor shall, at its expense, defend any suit instituted against the Department and indemnify the Department against any award of damages and costs made against the Department by a final judgment of a court of last resort based on the claim that any of the products, services or consumable supplies furnished by the Contractor under this Contract infringes any patent, copyright or other proprieta~ right; provided the Department gives the Contractor: (1) prompt written notice of any action, claim or threat of infringement suit, or other suit, and (2) the opportunity to take over, settle or defend such action at the Contractor's sole expense, and (3) all available infornmtion, assistance and authority necessary to the action, at the Contractor's sole expense. The Contractor shall control the defense of any such suit, including appeals, and all negotiations to effect settlement, but shall keep the Department fully informed concerning the progress of the litigation. (b) If the use of any item(s) or parts thereof is held to infringe a patent or copyright and its use is enjoined, or Contractor believes it will be enjoined, the Contractor shall have the right, at its election and expense to take action in the following order of precedence: (1) procure for the Department the right to continue using the same item or parts thereof; (2) modify the same so that it becomes non-infringing and of at least the same quality and performance; (3) replace the item(s) or parts thereof with noninfringing items of at least the same quality and performance: (4) if none of the above remedies are available, discontinue its use and eliminate any future charges or royalties pertaining thereto. The Contractor will buy back the infringing product(s) at the State's book value, or in the event of a lease, the parties shall terminate the lease. If discontinuation or elimination results in the Contractor not being able to perform the Contract, the Contract shall be terminated. (c) In the event that an action at law or in equity is commenced against the Department arising out of a claim that the DeparOnent's use of any item or material pursuant to or resulting from this Contract infringes any patent, copyright or proprietary right, and such action is forwarded by the Department to the Contractor for defense and indemnification pursuant to this Article, the Department shall copy all pleadings and documents forwarded to the Contractor together with the forwarding correspondence and a copy of this Contract to the Office of the Attorney General of the State of New York. If upon receipt of such request for defense, or at any time thereafter, the Contractor is of the opinion that the allegations in such action, in whole or in part, are not covered by the indemnification set forth in this Article, the Contractor shall inunediately notify the Department and the Office of the Attorney General of the State of New York in writing and shall specify to what extent the Contractor believes it is and is not obligated to defend and indemnify under the terms and conditions of this Contract. The Contractor shall in such event protect the interests of the Department and State of New York and secure a continuance to permit the State of New York to appear and defend its interests in cooperation with Contractor as is appropriate, including any jurisdictional defenses which the Department and State shall have. (d) The Contractor shall, however, have no liability to the Department under this Article if any infringement is based upon or arises out of: (1) compliance with designs, plans, or specifications furnished by or on behalf of the Department as to the items; (2) alterations of the items by the Department; (3) failure of the Department to use updated items provided by the Contractor for avoiding infringement; (4) use of items in combination with apparatus or devices not delivered by the Contractor; (5) use of items in a manner for which the same were neither designed nor contemplated; or (6) a patent or copyright in which the App. B 4/17/00 Page 6 Department or any affiliate or subsidiary of the Department has any direct or indirect interest by license or otherwise. (e) The foregoing states the Contractor's entire liability for, or resulting from, patent or copyright infringement or claim thereof. XVI1. Force Majeure Theterm Force Majeure shall include acts of God, work stoppages due to labor disputes or strikes, fires, explosions, epidemics, riots, war rebellion, sabotage or the like. Ifa failure of or delay in performance by either party results from the occurrence ora Force Majeure event, the delay shall be excused and the time for performance extended by a period equivalent to the time lost because of the Force majeure event~ if and to the extent that: (a) The delay or failure was beyond the control of the party affected and not due to its fault or negligence; and (b) The delay or failure was not extended because of the affected party's failure to use all reasonable diligence to overcome the obstacle or to resume performance immediately after such obstacle was overcome; and (c) The affected party provides notice within (5) days of the onset of the event, that it is invoking the protection of this provision. XVIll. Freedom of Information Requests The Contractor agrees to provide the Department with any records which must be released in order to comply with a request pursuant to the Freedom oflnfdrmation Law. The Department will provide the contractor with an opportunity to identify mffterial which may be protected from release and to support its position. XIX. Precedence In the event of a conflict between the terms of this Appendix B and the terms of the Contract (including any and all attachments thereto and amendments thereof, but not including Appendix A), the terms of this Appendix B shall control. In the event ora conflict between the terms of this Appendix B, and the terms of Appendix A, the terms of Appendix A shall control. App. B 4/17/00 Page 7