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Addendum To Customer Service Agreement Terms: Sanitary District

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UniFirst Corporation

2016 Zanker Rd
San Jose, CA 95131
Phone: 408-297-8101

Addendum to Customer Service Agreement Terms


This Addendum is being used to amend the Customer Service Agreement
(“Service Agreement”) between UniFirst Corporation and East Palo Alto
Sanitary District:

Terms

 The Term and Renewal provision of the Service Agreement is hereby


amended in its entirety to read as follows:

o “TERM AND RENEWAL. This Agreement is effective upon the


occurrence of both of the following: (1) when this Agreement is signed
by both the Customer and UniFirst Location Manager and (2) upon
Customer successfully terminating its existing rental garment
agreement with Cintas and agreeing to move forward with this
Agreement. The initial term of this Agreement shall be for one (1)
year. The Customer shall have the unilateral option, at its sole
discretion, to renew this Agreement for no more than two (2)
additional one-year terms. In the event Customer terminates the
Agreement without cause prior to expiration of the initial one (1) year
term of this Agreement, Customer agrees to pay for the cost of
Merchandise at the replacement rate(s) set forth in this Agreement.
Notwithstanding anything to the contrary, this Agreement shall
automatically terminate in the event Customer is unable to secure
release from its existing garment rental agreement with Cintas and
Customer shall not be liable to Unifirst for any cancellation or
termination fees, penalties or expenses.”

 The following shall be added to the DEFE Charge provision of the Service Agreement:

o “The DEFE charge shall not exceed three percent (3%) per service invoice.”

 The following shall be added to the Prices and Payments provisions of the Service
Agreement:

o “Customer will NOT pay any set up/prep fees upon initial set up. Customer
will not be subject to any off-cycle price increases throughout the term of this
Agreement. UniFirst may only increase prices once annually during the term
of this Agreement based on the annual percent increase in the Consumer Price
Index (CPI).
 The Miscellaneous provision of the Service Agreement is hereby amended in
its entirety to read as follows:

o “MISCELLANEOUS. The parties agree that this Agreement


represents the entire agreement between them. In the event Customer
issues a purchase order to UniFirst at any time, none of the standard
pre-printed terms and conditions therein shall have any application to
this Agreement, or any transactions occurring pursuant hereto or
thereto. UniFirst may, in its sole discretion, assign this Agreement.
Customer may not assign this Agreement without the prior written
consent of UniFirst. Customer agrees that in the event it sells or
transfers its business, it will require the purchaser or transferee to
assume all obligations and responsibilities under this Agreement;
provided that such assumption shall not relieve Customer of its
liabilities hereunder; and provided further that any failure by a
purchaser or transferee to assume this Agreement shall constitute a
breach and early termination of this Agreement resulting in the
obligation to pay all amounts on account thereof as set forth in this
Agreement. Neither party will be liable for any incidental,
consequential, special or punitive damages. In no event shall Unifirst’s
aggregate liability to Customer for any and all claims exceed the sum
of all amounts actually paid by Customer to Unifirst. In the event any
portion of this Agreement is held by a court of competent jurisdiction
or by a duly appointed arbitrator to be unenforceable, the balance will
remain in effect. All written notices provided to UniFirst must be sent
by certified mail to the attention of the Location Manager. In Texas
and certain other locations, UniFirst's business is conducted by, and the
term “UniFirst”as used herein means, UniFirst Holdings, Inc. d.b.a.
UniFirst.”

 The Obligations and Remedies provision of the Service Agreement is hereby


amended in its entirety to read as follows:

“OBLIGATIONS AND REMEDIES. If Customer breaches or


terminates this Agreement before the expiration date for any
reason (other than for UniFirst's failure under the performance
guarantee described above) Customer will pay Unifirst, as
liquidated damages And not as a penalty (the parties
acknowledging that actual damages would be difficult to
Calculate with reasonable certainty) an amount equal to 50
percent of the average weekly Amounts invoiced in the
preceding 26 weeks, multiplied by the number of weeks
remaining in the current term Unifirst shall be entitled to
compensation for all Services properly rendered under the
Agreement prior to the effective date of termination. These This
damages compensation will be in addition to all other obligations
or amounts owed by Customer to UniFirst, including the return
of Standard Merchandise or payment of replacement charges,
and the purchase of any Non-Standard Merchandise items as set
forth herein.

This Agreement shall be governed by Massachusetts California


law (exclusive of choice of law). If a dispute arises from or relates
in any way to this Agreement or any alleged breach thereof at any
time, the parties will first attempt to resolve the claim or dispute
by negotiation at agreed time(s) and location(s). All negotiations
are confidential and will be treated as settlement negotiations.
Any matter not resolved through direct negotiations within 30
days shall be resolved in a state or federal court situated in the
County of Yolo State of California exclusively by final and
binding arbitration, conducted in the capital city of the state
where Customer has its principal place of business (or some
other location mutually agreed Pursuant to the Commercial
Arbitration Rules of the American Arbitration Association; and
Governed by the Federal Arbitration Act, to the exclusion of the
state law inconsistent therewith. The parties will agree upon one
(1) Arbitrator to settle the controversy or claim. The successful or
substantially prevailing party in any proceeding, including any
appeals thereof (as determined by the Arbitrator/court) shall
recover all of its costs and expenses including, without limitation,
reasonable attorney fees, witness fees and discovery costs, all of
which shall be included in and as a part of the judgment or award
rendered hereunder. This provision for Arbitration is specifically
enforceable by the parties; the Arbitrator shall have No power to
vary or ignore the provisions hereof; and, the decision of the
Arbitrator in accordance herewith, may be entered in any court
having jurisdiction thereof, Customer Acknowledges that, with
respect to all such disputes, it has voluntarily and knowingly
waived any right it may have to a jury trial or to participate in a
class litigation as a representative of any other persons or as a
member of any class of persons or to consolidate its claims with
those of any other persons or class of persons. If this prohibition
against class litigation is ruled to be unenforceable for any
reason in any proceeding, then the prohibition against class
litigation shall be void and of no force and effect in that
proceeding.”

The purpose of entering the Agreement is to lock in proposed pricing and to create an
account number. If Customer is held to current rental garment agreement with Cintas,
Unifirst agrees to terminate this Agreement and will not charge Customer for any
termination or expiration fees, costs or penalties.

Agreed to and Authorized by____________________________________

Date
East Palo Alto Sanitary District

Accepted by_

Date
UniFirst General Manager

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