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<br /> <br />7400 Reese Road, Sacramento, CA 95828 | Office 916.330.1638 | Fax 916.330.1649 <br /> <br /> <br /> <br /> <br /> <br />Page 3 of 3 <br />ACCEPTING THIS PROPOSAL <br /> <br />In the event Customer wishes to purchase the Product described in this Proposal and the attached specifications, then, prior to the expiration <br />date listed on page 2 of this Proposal, Customer shall sign and return this Proposal. Thereafter, GSFA and Customer will endeavor to enter into <br />a purchase agreement incorporating this Proposal and including additional terms (a “Purchase Agreement”). If Customer returns a signed copy <br />of this Proposal alone, GSFA will send Customer its form of Purchase Agreement for Customer’s review and signature. If Customer desires to <br />use its standard form of purchase order as the Purchase Agreement, then Customer should return a signed copy of this Proposal along with a <br />copy of such purchase order. All purchase orders shall be made out to GSFA. GSFA will review such purchase order and contact the Customer <br />regarding any required revisions. Only upon a full execution of a Purchase Agreement shall GSFA and Customer be obligated to purchase and <br />sell the Product set forth in this Proposal. <br /> <br />TERMS AND CONDITIONS <br /> <br />The following Terms and Conditions are hereby made part of this Proposal: <br />1. Payment Terms, 100% Pre-Payment at Time of Order – <br />Customer shall pay the amount listed on page 2 of this Proposal, <br />which includes: (i) the total price for the Product (the “Purchase <br />Price”) less the Pre-Payment discount, (ii) the estimated state <br />sales tax on the Product, and (iii) the California tire fee (together <br />with the Purchase Price and estimated state sales tax, the “Grand <br />Total”) within fifteen (15) calendar days from the date on which <br />the Purchase Agreement is fully executed. In the event Customer <br />does not pay GSFA the Grand Total in the timeframe set forth in <br />this Section 1, Customer shall not receive the Pre-Payment <br />discount shown on page 2 of this Proposal and GSFA may, in its <br />sole discretion cancel the Purchase Agreement entered into <br />between the parties. <br /> <br />2. Multiple Unit Purchase – If the Purchase Price includes pricing <br />for multiple units, the price stated on this Proposal shall only be <br />valid if the quantity of Products being proposed are purchased at <br />the same time, pursuant to the same Purchase Agreement. <br /> <br />3. Stock / Demo Units – If applicable, any stock/demo units, <br />including those identified by this Proposal, are available for sale <br />on an as-is, first-come and first served-basis. Regardless of this <br />Proposal, the first Customer to enter into a Purchase Agreement <br />identifying any such stock/demo unites shall obtain said units. <br /> <br />4. Order Changes – The Customer may request that GSFA <br />incorporate a change to the Product or the Specifications for the <br />Product by delivering a written change order to GSFA, which shall <br />include a description of the proposed change sufficient to permit <br />GSFA to evaluate the feasibility of such change (a “Change <br />Order”). GSFA will provide Customer a written response (a <br />“Response”) stating (i) whether GSFA will accommodate such <br />Change Order (which GSFA may decide in its sole and absolute <br />discretion) and (ii) the terms of the modification to the order, <br />including any increase or decrease in the Purchase Price resulting <br />from such Change Order, and any effect on production scheduling <br />or Delivery resulting from such Change Order. Customer shall <br />have seven (7) days after receipt of the Response to notify GSFA <br />as to whether Customer desires to make the changes GSFA has <br />approved in the Response. In the event Customer counter-signs <br />GSFA’s Response, Customer shall pay the increase (or be <br />refunded the decrease) in the Purchase Price prior to final <br />delivery to Customer location. <br />5. Force Majeure – GSFA shall not be responsible nor deemed to <br />be in default on account of delays in performance due to causes <br />which are beyond GSFA’s and manufacturer’s control and which <br />make GSFA’s performance impracticable, including but not limited <br />to wars, insurrections, strikes, riots, fires, storms, floods, other <br />acts of nature, explosions, earthquakes, accidents, any act of <br />government, delays in transportation, inability to obtain <br />necessary labor supplies or manufacturing facilities, allocation <br />regulations or orders affecting materials, equipment, facilities or <br />completed products, failure to obtain any required license or <br />certificates, acts of God or the public enemy or terrorism, failure <br />of transportation, epidemics, quarantine restrictions, failure of <br />vendors (due to causes similar to those within the scope of this <br />clause) to perform their contracts or labor troubles causing <br />cessation, slowdown, or interruption of work. <br /> <br />6. Cancellation/Termination – In the event Customer and GSFA <br />enter into a Purchase Agreement and Customer thereafter <br />cancels or terminates the Purchase Agreement, GSFA will charge <br />a cancellation fee as follows: (a) 10% of the Purchase Price after <br />order is accepted and entered by GSFA; (b) 20% of the Purchase <br />Price after completion of the pre-construction phase of the order <br />process; and (c) 50% of the Purchase Price after the requisition of <br />any materials or commencement of any manufacturing or <br />assembly of the Product by either GSFA or the manufacturer of <br />the Product. The tier of cancellation fee applicable to any <br />cancellation shall be in the sole and absolute discretion of GSFA. <br /> <br />7. State Sales Tax – Customer shall be responsible for the cost of <br />state sales tax associated with, or attributable to the Product. The <br />taxes owed by Customer for the Product is subject to adjustment <br />for the applicable state sales tax rate in effect when the Product is <br />delivered to the Customer. Therefore, the sales tax will be <br />increased or decreased at the time of delivery if a change in the <br />sales tax rate has occurred, in which case Customer shall pay <br />GSFA (or be refunded by GSFA) the applicable change in sales tax. <br /> <br />8. Proposal Expiration – After the Expiration Date shown on page <br />one of this Proposal, Customer shall require GSFA’s written <br />consent to accept this Proposal. <br /> <br />9. Governing Law – This Proposal is to be governed by and under <br />the laws of the state of California. <br /> <br />Thank you for providing Golden State Fire Apparatus, Inc. with the opportunity to provide this proposal. If you have any questions regarding <br />the options presented or need additional options, please contact me. <br /> <br />Sincerely, I, _______________________________________________________________authorized representative of <br />CITY OF SAN LEANDRO agrees to purchase the proposed Product(s) and agree to the terms <br />and conditions of this proposal and the specifications hereto attached. <br /> <br /> <br />Daron Wright SIGNATURE: _________________________________________________________________________________ <br />Golden State Fire Apparatus, Inc. <br /> TITLE: _________________________________________________ DATE: ______________________________ <br /> <br />121