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EXCLUSIVE AGREEMENT BETWEEN THE CITY OF SAN LEANDRO CALIFORNIA <br />AND REDFLEX TRAFFIC SYSTEMS, INC. FOR <br />TRAFFIC CAMERA SAFETY IMPROVEMENT PROGRAM <br />This Agreement (this "Agreement ") is made as of this April 20, 2011 by and between Redflex <br />Traffic Systems, Inc., a Delaware Corporation, with offices at 6076 Bristol Parkway, Culver <br />City California, 90230 ( "Redflex "), and The City of San Leandro a municipal corporation, with <br />offices at 835 East 14` Street, San Leandro, California 94577 (the "Customer" and/or the <br />City "). <br />RECITALS <br />WHEREAS, Redflex has exclusive knowledge, possession and ownership of certain equipment, <br />licenses, applications, and citation processes related to the Traffic Camera Safety Improvement <br />Program (hereinafter "the Program "); and <br />WHEREAS, the Customer desires to engage the services of Redflex to provide certain <br />equipment, processes and back office services so that Authorized Employees of the Customer are <br />able to monitor, identify and enforce traffic violations; and <br />WHEREAS, it is a mutual objective of both Redflex and the Customer to reduce the incidence of <br />vehicle collisions at the traffic intersections and city streets that will be monitored pursuant to the <br />terms of this Agreement. <br />NOW THEREFORE, in consideration of the mutual covenants contained herein, and for other <br />valuable consideration received, the receipt and sufficiency of which are hereby acknowledged, <br />the parties agree as follows: <br />AGREEMENT <br />1. DEFINITIONS. In this Agreement, the words and phrases below shall have the following <br />meanings: <br />1.1. "Authorized Employee" means the Project Manager or such other individual(s) as the <br />Customer shall designate to review Potential Violations and to authorize the Issuance of <br />Citations in respect thereto, <br />1.2. "Authorized Violation" means each Potential Violation in the Violation Data for which <br />authorization to issue a citation in the form of an Electronic Signature is given by the <br />Authorized Employee by using the Redflex System. <br />1.3. "Citation" means the notice of a Violation, which is mailed or otherwise delivered by <br />Redflex to the violator on the appropriate Enforcement Documentation in respect of each <br />Authorized Violation. <br />1.4. "Confidential or Private Information" means, with respect to any Person, any <br />information, matter or thing of a secret, confidential or private nature, whether or not so <br />labeled, which is connected with such Person's business or methods of operation or <br />concerning any of such Person's suppliers, licensors, licensees, customers.or others with <br />whom such Person has a business relationship, and which has current or potential value <br />to such Person or the unauthorized disclosure of which could be detrimental to such <br />Person, including but not limited to: <br />1.4.1. Matters of a business nature, including but not limited to information relating to <br />development plans, costs, finances, marketing plans, data, procedures, business <br />opportunities, marketing methods, plans and strategies, the costs of construction, <br />installation, materials or components, the prices such Person obtains or has obtained <br />1