HomeMy WebLinkAboutContract CAG-19-315
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AGREEMENT FOR TERRA STAFFING GROUP
THIS AGREEMENT, dated May 7th, 2018, is by and between the City of Renton (the "City" or
"Customer"), a Washington municipal corporation, and TERRA Services, Inc. ("Consultant" or
"TERRA"), a Washington corporation.The City and the Consultant are referred to collectively in
this Agreement as the "Parties." Once fully executed by the Parties, this Agreement is effective
as of the last date signed by both parties.
1. Scope of Work: Consultant agrees to provide staffing and recruiting services as specified
in Exhibit 1, which is attached and incorporated herein and may hereinafter be referred
to as the "Work."
2. Changes in Scope of Work: The City, without invalidating this Agreement, may order
changes to the Work consisting of additions,deletions or modifications.Any such changes
to the Work shall be ordered by the City in writing and the Compensation shall be
equitably adjusted consistent with the rates set forth in Exhibit 2 or as otherwise mutually
agreed by the Parties,
3. Time of Performance: Consultant shall commence performance of the Agreement
pursuant to the schedule(s)set forth in Exhibit 1.All Work shall be performed by no later
than 12/31/19.
4. Compensation:
A. Amount, Compensation shall be paid based upon Work actually performed according
to the rate(s)or amounts specified in Exhibit 2.The Consultant agrees that any hourly
or flat rate charged by It for its Work shall remain locked at the negotiated rate(s)
unless otherwise agreed to in writing or provided in Exhibit 2. Except as specifically
provided herein, the Consultant shall be solely responsible for payment of any taxes
imposed as a result of the performance and payment of this Agreement.
B. Method of Payment. On a weekly basis during any week in which Work is performed,
the Consultant shall submit a voucher or invoice in a form specified by the City,
including a description of what Work has been performed,the name of the personnel
performing such Work, and any hourly labor charge rate for such personnel. The
Consultant shall also submit a final bill upon completion of all Work, Payment shall be
made by the City for Work performed within thirty (30) calendar days after receipt
and approval by the appropriate City representative of the voucher or invoice. If the
Consultant's performance does not meet the requirements of this Agreement, the
Consultant will correct or modify its performance to comply with the Agreement.The
City may withhold payment for work that does not meet the requirements of this
Agreement.
C. Effect of Payment. Payment for any part of the Work shall not constitute a waiver by
the City of any remedies it may have against the Consultant for failure of the
Consultant to perform the Work or for any breach of this Agreement by the
Consultant.
D. Non-Appropriation of Funds. If sufficient funds are not appropriated or allocated for
payment under this Agreement for any future fiscal period, the City shall not be
obligated to make payments for Work or amounts incurred after the end of the
current fiscal period, and this Agreement will terminate upon the completion of all
remaining Work for which funds are allocated. No penalty or expense shall accrue to
the City in the event this provision applies.
5. Termination:
A. The City reserves the right to terminate this Agreement at any time, with or without
cause by giving ten(10)calendar days'notice to the Consultant in writing.In the event
of such termination or suspension,all finished or unfinished documents,data,studies,
worksheets, models and reports, or other material prepared by the Consultant
pursuant to this Agreement shall be submitted to the City, if any are required as part
of the Work.
B. In the event this Agreement is terminated by the City,the Consultant shall be entitled
to payment for all hours worked to the effective date of termination,less all payments
previously made. If the Agreement is terminated by the City after partial performance
of Work for which the agreed compensation is a fixed fee, the City shall pay the
Consultant an equitable share of the fixed fee. This provision shall not prevent the
City from seeking any legal remedies it may have for the violation or nonperformance
of any of the provisions of this Agreement and such charges due to the City shall be
deducted from the final payment due the Consultant. No payment shall be made by
the City for any expenses incurred or work done following the effective date of
termination unless authorized in advance In writing by the City.
6. Warranties And Right To Use Work Product: Consultant represents and warrants that
Consultant will perform all Work identified in this Agreement in a professional and
workmanlike manner and in accordance with all reasonable and professional standards
and laws.Compliance with professional standards includes,as applicable,performing the
Work in compliance with applicable City standards or guidelines (e.g. design criteria and
Standard Plans for Road,Bridge and Municipal Construction).Professional engineers shall
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certify engineering plans, specifications, plats, and reports, as applicable, pursuant to
RCW 18.43.070. Consultant further represents and warrants that all final work product
created for and delivered to the City pursuant to this Agreement shall be the original work
of the Consultant and free from any intellectual property encumbrance which would
restrict the City.from using the work product. Consultant grants to the City a non-
exclusive, perpetual right and license to use, reproduce, distribute, adapt, modify, and
display all final work product produced pursuant to this Agreement.The City's or other's
adaptation, modification or use of the final work products other than for the purposes of
this Agreement shall be without liability to the Consultant. The provisions of this section
shall survive the expiration or termination of this Agreement.
7. Record Maintenance: The Consultant shall maintain accounts and records, which
properly reflect all direct and indirect costs expended and Work provided in the
performance of this Agreement and retain such records for as long as may be required by
applicable Washington.State records retention laws, but in any event no less than six
years after the termination of this Agreement. The Consultant agrees to provide access
to and copies of any records related to this Agreement as required by the City to audit
expenditures and charges and/or to comply with the Washington State Public Records Act
(Chapter 42.56 RCW). The provisions of this section shall survive the expiration or
termination of this Agreement.
8. Public Records Compliance: To the full extent the City determines necessary to comply
with the Washington State Public Records Act, Consultant shall make a due diligent search
of all records in its possession or control relating to this Agreement and the Work,
including, but not limited to, e-mail, correspondence, notes, saved telephone messages,
recordings,photos, or drawings and provide them to the City for production. In the event
Consultant believes said records need to be protected from disclosure, it may, at
Consultant's own expense, seek judicial protection. Consultant shall indemnify, defend,
and hold harmless the City for all costs, including attorneys' fees, attendant to any claim
or litigation related to a Public Records Act request for which Consultant has responsive
records and for which Consultant has withheld records or information contained therein,
or not provided them to the City in a timely manner. Consultant shall produce for
distribution any and all records responsive to the Public Records Act request in a timely
manner, unless those records are protected by court order.The provisions of this section
shall survive the expiration or termination of this Agreement.
9. ; Independent Contractor Relationship:
A. The Consultant is retained by the City only for the purposes and to the extent set forth
in this Agreement.The nature of the relationship between the Consultant and the City
during the period of the Work shall be that of an independent contractor, not
employee.The Consultant, not the City,shall have the power to control and direct the
details, manner or means of Work. Specifically, but not by means of limitation, the
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Consultant shall have no obligation to work any particular hours or particular
schedule, unless otherwise indicated in the Scope of Work or where scheduling of
attendance or performance is mutually arranged due to the nature of the Work.
Consultant shall retain the right to designate the means of performing the Work
covered by this agreement, and the Consultant shall be entitled to employ other
workers at such compensation and such other conditions as it may deem proper,
provided, however, that any contract so made by the Consultant is to be paid by it
alone, and that employing such workers, it is acting individually and not as an agent
for the City.
B. The City shall not be responsible for withholding or otherwise deducting federal
income tax or Social Security or contributing to the State Industrial Insurance
Program,or otherwise assuming the duties of an employer with respect to Consultant
or any employee of the Consultant.
C. If the Consultant is a sole proprietorship or if this Agreement is with an individual,the
Consultant agrees to notify the City and complete any required form if the Consultant
retired under a State of Washington retirement system and agrees to indemnify any
losses the City may sustain through the Consultant's failure to do so.
10. Hold Harmless:The Consultant agrees to release, indemnify, defend, and hold harmless
the City, elected officials, employees, officers, representatives, and volunteers from any
and all claims, demands, actions, suits, causes of action, arbitrations, mediations,
proceedings, judgments, awards, injuries, damages, liabilities, taxes, losses, fines, fees,
penalties, expenses, attorney's or attorneys'fees, costs, and/or litigation expenses to or
by any and all persons or entities,arising from, resulting from,or related to the negligent
acts, errors or omissions of the Consultant in its performance of this Agreement or a
breach of this Agreement by Consultant, except for that portion of the claims caused by
the City's sole negligence.
Should a court of competent jurisdiction determine that this agreement is subject to RCW
4.24.115, (Validity of agreement to indemnify against liability for negligence relative to
construction,alteration,improvement,etc.,of structure or improvement attached to real
estate...)then, in the event of liability for damages arising out of bodily injury to persons
or damages to property caused by or resulting from the concurrent negligence of the
Consultant and the City, its officers, officials, •employees and volunteers, Consultant's
liability shall be only to the extent of Consultant's negligence.
It is further specifically and expressly understood that the indemnification provided in
this Agreement constitute Consultant's waiver of immunity under the Industrial
Insurance Act, RCW Title 51, solely for the purposes of this indemnification. The Parties
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have mutually negotiated and agreed to this waiver. The provisions of this section shall
survive the expiration or termination of this Agreement.
11. Gifts and Conflicts: The City's Code of Ethics and Washington State law prohibit City
employees from soliciting, accepting, or receiving any gift, gratuity or favor from any
person, firm or corporation involved in a contract or transaction, To ensure compliance
with the City's Code of Ethics and state law,the Consultant shall not give a gift of any kind
to City employees or officials. Consultant also confirms that Consultant does not have a
business interest or a close family relationship with any City officer or employee who was,
is, or will be involved in selecting the Consultant, negotiating or administering this
Agreement, or evaluating the Consultant's performance of the Work.
12. City of Renton Business License: The Consultant shall obtain a City of Renton Business
License prior to performing any Work and maintain the business license in good standing
throughout the term of this agreement with the City.
Information regarding acquiring a city business license can be found at:
http://www.rentonwa.gov/cros/O n e.aspx?portalld=7922741&page l d=9824882
Information regarding State business licensing requirements can be found at:
http://dor.wa.gov/doing-business/register-my-business
13. Insurance: Consultant shall secure and maintain:
A. Commercial general liability insurance in the minimum amounts of $1,000,000 for
each occurrence/$2,000,000 aggregate for the.Term of this Agreement.
B. In the event that Work delivered pursuant to this Agreement either directly or
•
indirectly involve or require Professional Services, Professional Liability, Errors and
Omissions coverage shall be provided with minimum limits of $1,000,000 per
occurrence. "Professional Services", for the purpose of this section, shall mean any
Work provided by a licensed professional or Work that requires a professional
standard of care.
C. Workers' compensation coverage, as required by the Industrial Insurance laws of the
State of Washington,shall also be secured.
D. Commercial Automobile Liability for owned,leased,hired or non-owned,leased,hired
or non-owned, with minimum limits of$1,000,000 per occurrence combined single
limit, if there will be any use of Consultant's vehicles on the City's Premises by or on
behalf of the City, beyond normal commutes.
E. Consultant shall name the City as an Additional Insured on its commercial general
liability policy on a non-contributory primary basis. The City's insurance policies shall
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not be a source for payment of any Consultant liability, nor shall the maintenance of
any insurance required by this Agreement be construed to limit the liability of
Consultant to the coverage provided by such insurance or otherwise limit the City's
recourse to any remedy available at law or in equity.
F. Subject to the City's review and acceptance, a certificate of insurance showing the
proper endorsements,shall be delivered to the City before performing the Work.
G. Consultant shall provide the City with written notice of any policy cancellation,within
two (2)business days of their receipt of such notice.
14. Delays: Consultant is not responsible for delays caused by factors beyond the
Consultant's reasonable control. When such delays beyond the Consultant's reasonable
control occur,the City agrees the Consultant is not responsible for damages, nor shall the
Consultant be deemed to be in default of the Agreement.
15. Successors and Assigns: Neither the City nor the Consultant shall assign, transfer or
encumber any rights, duties or interests accruing from this Agreement without the
written consent of the other.
16. Notices: Any notice required under this Agreement will be in writing, addressed to the
appropriate party at the address which appears below (as modified in writing from time
to time by such party), and given personally, by registered or certified mail,return receipt
requested,by facsimile or by nationally recognized overnight courier service.Time period
for notices shall be deemed to have commenced upon the date of receipt, EXCEPT
facsimile delivery will be deemed to have commenced on the first business day following
transmission. Email and telephone may be used for purposes of administering the
Agreement,but should not be used to give any formal notice required by the Agreement.
CITY OF RENTON CONSULTANT
Craig Burnell • TERRA Staffing Group
1055 South Grady Way 16400 Southcenter Pkwy, #200
Renton, WA 98057 Tukwila, Wa 98188
Phone: (425)430-7290 Phone:425-793-5460
cburnell@rentonwa.gov
Fax: (425) 430-7300
17. Discrimination Prohibited: Except to the extent permitted by a bona fide occupational
qualification,the Consultant agrees as follows:
A. Consultant, and Consultant's agents, employees, representatives, and volunteers
with regard to the Work performed or to be performed under this Agreement, shall
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not discriminate on the basis of race, color, sex, religion, nationality, creed, marital
status, sexual orientation or preference, age (except minimum age and retirement
provisions), honorably discharged veteran or military status, or the presence of any
sensory, mental or physical handicap, unless based upon a bona fide occupational
qualification in relationship to hiring and employment, in employment or application
for employment, the administration of the delivery of Work or any other benefits
under this Agreement, or procurement of materials or supplies.
B. The Consultant will take affirmative action to insure that applicants are employed and
that employees are treated during employment without regard to their race, creed,
color, national origin, sex, age, sexual orientation, physical, sensory or mental
handicaps, or marital status. Such action shall include, but not be limited to the
following employment, upgrading, demotion or transfer, recruitment or recruitment
advertising, layoff or termination, rates of pay or other forms of compensation and
selection for training.
C. If the Consultant fails to comply with any of this Agreement's non-discrimination
provisions, the City shall have the right, at its option, to cancel the Agreement in
whole or in part.
D. The Consultant is responsible to be aware of and in compliance with all federal,state
and local laws and regulations that may affect the satisfactory completion of the
project, which includes but is not limited to fair labor laws, worker's compensation,
and Title VI of the Federal Civil Rights Act of 1964,and will comply with City of Renton
Council Resolution Number 4085.
18. Miscellaneous:The parties hereby acknowledge:
A. The City is not responsible to train or provide training for Consultant.
B. Consultant will not be reimbursed for job related expenses except to the extent
specifically agreed within the attached exhibits.
C. Consultant shall furnish all tools and/or materials necessary to perform the Work
except to the extent specifically agreed within the attached exhibits.
D. In the event special training, licensing, or certification is required for Consultant to
provide Work he/she will acquire or maintain such at his/her own expense and, if
Consultant employs,sub-contracts,or otherwise assigns the responsibility to perform
the Work, said employee/sub-contractor/assignee will acquire and or maintain such
training,licensing, or certification.
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E. This is a non-exclusive agreement and Consultant is free to provide his/her Work to
other entities,so long as there is no interruption or interference with the provision of
Work called for in this Agreement.
F. Consultant is responsible for his/her own insurance, including, but not limited to
health insurance.
G. Consultant is responsible for his/her own Worker's Compensation coverage as well as
that for any persons employed by the Consultant.
19. Other Provisions:
A. Approval Authority. Each individual executing this Agreement on behalf of the City
and Consultant represents and warrants that such individuals are duly authorized to
execute and deliver this Agreement on behalf of the City or Consultant.
B. General Administration and Management.The City's project manager is Craig Burnell.
In providing Work, Consultant shall coordinate with the City's contract manager or
his/her designee.
C. Amendment and Modification. This Agreement may be amended only by an
instrument in writing,duly executed by both Parties.
D. Conflicts. In the event of any inconsistencies between Consultant proposals and this
Agreement, the terms of this Agreement shall prevail. Any exhibits/attachments to
this Agreement are incorporated by reference only to the extent of the purpose for
which they are referenced within this Agreement. To the extent a Consultant
prepared exhibit conflicts with the terms in the body of this Agreement or contains
terms that are extraneous to the purpose for which it is referenced,the terms in the
body of this Agreement shall prevail and the extraneous terms shall not be
incorporated herein.
E. Governing Law. This Agreement shall be made in and shall be governed by and
interpreted in accordance with the laws of the State of Washington and the City of
Renton. Consultant and all of the Consultant's employees shall perform the Work in
accordance with all applicable federal, state, county and city laws, codes and
ordinances.
F. Joint Drafting Effort.This Agreement shall be considered for all purposes as prepared
by the joint efforts of the Parties and shall not be construed against one party or the
other as a result of the preparation, substitution, submission or other event of
negotiation, drafting or execution.
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G. Jurisdiction and Venue.Any lawsuit or legal action brought by any party to enforce or
interpret this Agreement or any of its terms or covenants shall be brought in the King
County Superior Court for the State of Washington at the Maleng Regional Justice
Center in Kent, King County, Washington, or its replacement or successor.
H. Severability. A court of competent jurisdiction's determination that any provision or
part of this Agreement is illegal or unenforceable shall not cancel or invalidate the
remainder of this Agreement, which shall remain in full force and effect.
I. Sole and Entire Agreement. This Agreement contains the entire agreement of the
Parties and any representations or understandings, whether oral or written, not
incorporated are excluded.
J. Time is of the Essence. Time is of the essence of this Agreement and each and all of
its provisions in which performance is a factor. Adherence to completion dates set
forth in the description of the Work is essential to the Consultant's performance of
this Agreement.
K. Third-Party Beneficiaries. Nothing in this Agreement is intended to, nor shall be
construed to give any rights or benefits in the Agreement to anyone other than the
Parties, and all duties and responsibilities undertaken pursuant to this Agreement will
be for the sole and exclusive benefit of the Parties and no one else.
L. Binding Effect. The Parties each bind themselves, their partners, successors, assigns,
and legal representatives to the other party to this Agreement, and to the partners,
successors, assigns, and legal representatives of such other party with respect to all
covenants of the Agreement.
M. Waivers.All waivers shall be in writing and signed by the waiving party. Either party's
failure to enforce any provision of this Agreement shall not be a waiver and shall not
prevent either the City or Consultant from enforcing that provision or any other
provision of this Agreement in the future. Waiver of breach of any provision of this
Agreement shall not be deemed to be a waiver of any prior or subsequent breach
unless it is expressly waived in writing.
N. Counterparts. The Parties may execute this Agreement in any number of
counterparts, each of which shall constitute an original, and all of which will together
constitute this one Agreement.
IN WITNESS WHEREOF, the Parties have voluntarily entered into this Agreement as of the date
last signed by the Parties below.
44.
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CITY OF RENTON CONSULTANT
By: By:
Craig Burnell Lan a Fis hbach
Building Official Branch Manager ////
6;77 ( 5/7/18
Date Date
Attest
Jaso. r.Seth
C' Clerk
Approved as too Legal Form
Shane Moloney
Renton City Attorney
Contract Template Updated 04/10/2018
TERRA Staffing Group—Exhibit 1 T E
(1) Description of Work;Services-Customer engages TERRA to assist it with its staffing and payroll needs as furt er
described in Exhibit 1("Services").Customer will contact TERRA with a staffing or payroll need and TERRA will
provide Customer with candidates for Customer's position(s)("Candidates"). Selected Candidates will be
employees of TERRA,except under Direct Hire Placement,and assigned to Customer("Placed Employee"or
"Payroll Employee",collectively'Employee"). As the employer of an Employee,TERRA will perform all activiti-s
required by employers including maintenance of personnel and payroll records,payment of all wages,calcula ion
and payment of taxes,and the provision of insurance(including coverage for qualifying Employees pursuant to
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the Patient Protection and Affordable Care Act)and Workers'Compensation. TERRA retains the right to hire,
assign,re-assign,or terminate its employees(including Placed Employees)at any time.
(2) Fees and Payment.The fees due to TERRA in connection with the Services are set forth in Exhibit 1("Fees").
TERRA will invoice Customer weekly for the Services based on time submitted by the Placed Employee.
Submitted time will be deemed conclusive as to the number of compensable hours worked unless Customer
disputes the hours within 10 business days following the invoice. Direct Hire placements and conversions to
permanent positions will be billed upon acceptance of employment by a Candidate or Placed Employee with
Customer. Invoices are due upon receipt. Customer will pay any costs of collections including,but not limited
to,interest,attorney's fees and collection agency fees.TERRA reserves the right to change rates and ternis of
service at any time,but agrees to notify Customer at least 30 days prior to the effective date of such changes.
(3) Customer's Obligations.
(a)Customer agrees to provide Employees with a suitable workplace in compliance with all applicable Federal,
State and local laws.
(b)If Customer requires Employees to abide by certain of Its internal safety rules and regulations,Customer will
furnish to TERRA copies thereof.Customer agrees to provide Employees assigned to it safety and health
training specific to performing the work.In the event the work requires the use of any personal safety
equipment,TERRA and Customer agree to mutually arrange for the provision thereof.
(c) Customer has a policy prohibiting discrimination and harassment that has been distributed to all of its
employees.Customer will promptly notify TERRA of any instances in which Customer becomes aware of
alleged discrimination or harassment that involve Employees,including as witness.
(d)Customer agrees that Customer's applicable standard employee policies and practices will apply to
Employees as they do to Customer's employees.
(e)Customer warrants that It has provided to TERRA accurate information relating to Employees'employment
status,pay rate and other employment and payroll related information.
(f) In the event that a Payroll Employee is injured In an on-the-job accident and able to perform a modified duty
job,Customer agrees to provide modified duty work for Employee until Employee receives medical release
to return to regular job duties or Customer may authorize TERRA to place Employee in a modified duty job
arranged by TERRA under the current fee schedule for a period not to exceed 30 days.
(g)Customer will maintain in effect during the term of this Agreement any and all Federal,State and/or local
licenses and permits which may be required of employers generally and for the operation of its business
specifically.
(4) Indemnity. Customer will Indemnify and hold TERRA harmless from and against any claims,demands,suits,
losses,damages,costs and expenses arising out of i)any non-compliance violation or alleged non-compliance
violation by Customer of any laws;ii)any action or inaction by Employee acting at the direction of Customer or in
the ordinary course of Customer's business;lii)bodily injury or death of any person or damage to or destruction
of any property caused by any negligent act or omission on the part of Customer or its agents;iv)false,
inaccurate,misleading,or incomplete Employee information provided by Customer;v)actions or Inactions of
Customer's employees and agents;and vi)any breach of this Agreement by Customer. TERRA will indemnify and
hold Customer harmless from and against any claims,demands,suits,losses,damages,costs and expenses
arising out of i)any non-compliance violation or alleged non-compliance violation by TERRA of any laws;and ii)
any breach of this Agreement by TERRA.
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EXHIBIT 2—SERVICES AND FEES
1.Services. Customer may engage TERRA for the following services("Services"):
(a) Temporary Assignment.A"Temporary Assignment"Is the placement of temporary employees for Customer
and includes TERRA providing recruiting,interviewing,selection and hiring of Candidates who,in TERRA's ' E R R
judgment,are best qualified to perform the type of work requested by Customer on a temporary basis as c,;:
Placed Employees. Customer may at any time convert a Placed Employee from Temporary Assignment to a
Customer employee. Fees associated with such conversion will be Invoiced to Customer at the time of the
conversion as described herein.
(b) Temporary-to-Hire Assignment.A"Temporary-to-Hire Assignment"is the placement of an employee on a
temporary basis for Customer,with the intention of Customer hiring the employee into a permanent position.
Temporary-to-Hire Assignment includes the services set forth under Temporary Assignment above.Customer
may at any time convert a Placed Employee from a Temporary-to-Hire Assignment to a Customer employee.
Fees associated with such conversion will be invoiced to Customer at the time of the conversion.If for any reason
the Employee leaves the employment of the Customer during the first 90 days of employment following the
conversion,TERRA will provide a one time replacement of the employee.
(c) Direct Hire Placement. A"Direct Hire Placement"is the placement of an employee in a permanent position for
Customer and includes TERRA providing recruiting,interviewing and selection of Candidates who,in TERRA's
judgment,are best qualified to fill a permanent role on Customer's staff. Direct Hire Candidates will not be
employees of TERRA. If for any reason the Direct Hire employee leaves the employment of the Customer during
the first 90 days of employment,TERRA will provide a one time replacement of the employee or refund of Fees
as described below. The guarantee will not apply to layoffs or reduction of workforce due to insufficient work.
(d) Payrolling Services. "Payrolling Services"is a service whereby payroll services are provided on Customer's behalf
for a Customer selected employee("Payroll Employee"). Payroll Employee will be an employee of TERRA.
Customer may convert Payroll Employee to its payroll at any time without Incurring any additional fees.
2. Fees.Customer will pay to TERRA the following Fees("Fees")for the Services:
(a) Temporary Assignment. An hourly rate(s)agreed to by both parties for a Placed Employee.The billing rate
includes wages,the payroll burden costs required by law or otherwise referenced in the Agreement and TERRA's
service charge. For mandated benefits compliance,a surcharge will be incorporated into client markup. At any
time following 520 hours on assignment with Customer,the Customer may offer to employ the temporary
employee assigned by TERRA Staffing Group("Placed Employee")without payment of any additional
consideration to TERRA.Should Customer choose to convert the Employee prior to 520 hours with Customer,
the following conversion charges will apply:
Hours Worked on Assignment with Customer Percent of Starting Salary -- -1
From start up to and including 200 15%
I Greater than 200 up to and including 360 10%
Greater than 361 up to and including 520 5%
(b) Temporary-to-Hire Assignment. A fee of 20%of the estimated first year earnings of the Placed Employee.
While the Placed Employee serves in a temporary role,an hourly rate will be calculated based on the Placed
Employee's estimated first year earnings rate plus fifteen percent(15%)payroll tax and payroll processing
charge. The hourly rate Is calculated by amortizing the service charge over the length of the Temp-to-Hire
assignment and added pay rate plus fifteen percent(15%)for payroll tax and processing. When a Temp-to-Hire
Assignment is converted to a Customer employee,the balance of the service change is Invoiced and due in full.
(c) Direct Hire. Direct Hire placements are performed on a contingency basis and the associated Fees will be billed
upon acceptance of employment by a Candidate if such employment occurs within 12 months of TERRA's
presentation of the Candidate to Customer. Fees are a percentage of the annual wages offered to Candidate as
follows: For annual wages up to$75,000,the Fee is 20%,and for annual wages equal to or greater than$75,000,
the Fee is 25%. If Customer elects a refund of Fees In lieu of a replacement as described in Section 1(c)above,
TERRA will refund Fees as follows:
Days of Employment Percent of Fee Refunded
1-29 100%
30-59 I 66.66%
r 60-90 33.33%
e.
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