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HomeMy WebLinkAboutC30340 Desert Willows Golf Resort Golf Cart Onboard GPSContract No. C30520 CITY OF PALM DESERT STAFF REPORT REQUEST: APPROVE THE LEASE AGREEMENT BETWEEN THE DESERT WILLOW GOLF RESORT AND GPS INDUSTRIES, LLC, IN THE AMOUNT OF $11,058.61 PER MONTH FOR A TERM OF 48 MONTHS FOR THE PURPOSE OF PROCURING A GOLF CART ONBOARD GLOBAL POSITIONING SYSTEM (GPS) SUBMITTED BY: Catherine Walker, Senior Management Analyst APPLICANT: GPS Industries, LLC 1074 N. Orange Avenue Sarasota, FL 34236 DATE: January 13, 2010 CONTENTS: Bid Proposal Recommendation By Minute Motion: Approve the Lease Agreement for a golf cart onboard global positioning system for the Desert Willow Golf Resort in the amount of $11,058.61 per month (includes tax and interest) with GPS Industries, LLC, of Sarasota, Florida. Funds are available in Golf Course Expenses, Account No. 520-4195-495- 8091. Executive Summary The City of Palm Desert conducted a Request for Proposals (RFP) for the procurement of a golf cart onboard GPS system for the Desert Willow Golf Resort. The new lease agreement would provide GPS systems for the following: 191 golf carts which include marshal carts, spare golf cart units, spare marshal, spare beverage cart, and maintenance carts for a term of 48 months. The parameters of the lease are as follows: Equipment 191 units Lease Term 48 months GPS Rental Price Per Unit Per Month $53.24 Monthly GPS System Lease Payment 191 Units Plus Tax $11,058.61 Trade-in Value for Existing System 1 $20,337.68 Total Lease Cost for a 48-Month Term (includes trade-in value for existing GPS System) $530,813.28 Staff Report Golf Car On Board GPS System for the Desert Willow Golf Resort January 13, 2011 Page 2 of 4 Background The previous four-year lease agreement for the golf cart GPS system at the Desert Willow Golf Resort has expired. As per the terms of the previous lease agreement at the end of the four-year term, the Desert Willow Golf Resort purchases the existing GPS system and utilizes the trade-in value as part of the negotiation for a new GPS system. The Desert Willow Golf Resort is a nationally recognized golf destination that accommodated over 83,000 rounds of golf in fiscal year 2009/2010, and generated over $6 million in golf green fees. The purpose for the lease agreement is to cover all expenses relating to the procurement of a GPS system that will work in conjunction with the new fleet of 2011 Club Car golf carts and Desert Willow Clubhouse operations. The GPS system allows for ease of course playability and seamless player to clubhouse communication. On October 29, 2010, the City Clerk posted the public notice for the RFP for the City of Palm Desert and Desert Willow Golf Resort golf cart onboard GPS. Two bid proposals were received, both of which were non -responsive. In an effort to increase competition in the bidding process, secure a full complement of responsive bids, and accurately meet the business needs of the Desert Willow Golf Resort; the City Council rejected all of the bids on November 18, 2010. Staff issued a new RFP with the bid opening held on December 10, 2010. Three bids for a 48-month term were received the results were as follows: Company Location Bid Amount GPS Technologies Carroll, Iowa $70,656.00 Non -responsive Bollse a Hiawatha, Kansas $257,792.88 GPS Industries Sarasota, Florida $530,813.28 Recommended GPS Technologies was non -responsive to the RFP, in that the proposed product does not meet the GPS specifications outlined in Appendix A of the RFP. The following is an analysis of the two remaining systems proposed by Bollseye and GPS Industries, LLC (GPSI), examining both their functionality and responsiveness to Appendix A of the RFP: GPSI: Company Overview • Proven Product - Leading Provider of Golf Car GPS Systems. • 165 new facilities and over 300 existing clients. • 100% compatible with Club Car Systems. • Total Cart Control Integration (Cart Speed Control, Cart Identification, Cart Battery Monitoring, Cart Maintenance IQ System with Club Car only GPS System that is 100% compatible). • Advanced advertising capabilities with on the fly live updates. • Management reporting capabilities built in and in place. • Multiple management workstations for monitoring all aspects of customers' needs part of the system. • Full tournament management package in place. G:\rda\Cathy Walker\Word Data\StfRptDWGPS.doc Staff Report Golf Car On Board GPS System for the Desert Willow Golf Resort January 13, 2011 Page 3 of 4 BOLLSEYE: Company Overview • New Company — untested in commercial market — virtually a market Beta Test. • New Company with unknown proven long-term financing due to minimal revenue streams at present. • Not 100% compatible with Club Car Systems. • Only one 9-hole facility in operation in Kansas and another installation in process in Dubai. • Limited Cart Control (On/Off only) • Company can offer advertising services, but does not have systems fully in place. May require overnight changes. • Company offers the future creation of management reporting, but does not have systems in place at presentation. • Only one master workstation with the capacity to add viewing stations offered, but not in place at presentation. • Will be rolling out tournament program with VP Golf. Desert Willow works to provide guests with the most professional product, the best possible golf experience, and strives for Desert Willow to be competitive in the marketplace. Desert Willow experiences the most competition for play from the Classic Club, the Indian Wells Club, La Quinta Resort, the Marriott, and others all of whom offer GPS services on the level of GPSI or the GPSI system itself. GPSI is a superior product at this time based on the features offered, the compatibility with Club Car, and the number of installations as noted in the above analysis. Bollseye offers positive features and with time and development could become competitive. Bollseye is not yet a proven system, and would require Desert Willow to be a test site for their product. The GPS system is an integral part of play at Desert Willow and not only a benefit to the golfer, but also the Desert Willow Golf Resort operationally. The system allows customers to contact the pro shop in the event of an emergency, issue weather alerts, allows for Desert Willow to control the pace of play, allows the golfer to contact food and beverage, and contact on course service staff as needed. The system also allows for Desert Willow to control access to the delicate desertscape, and react to customer needs as they arise. Staff recommends approval of the lease agreement between the Desert Willow Golf Resort and GPSI for the lease of a golf cart onboard GPS system for a term of 48 months. The Desert Willow Golf Resort in conjunction with the Finance Department has thoroughly reviewed the proposed terms of the lease agreement, and has determined that the terms of the lease agreement are reasonable and proposed costs are in accordance with the previous agreement and current market conditions. The Desert Willow Golf Resort currently uses an older iteration of the GPSI system, and the proposed cost for the new and improved 2011 GPSI equipment is approximately $300,000 less than the previous four-year contract. G:\rda\Cathy Walker\Word Data\StfRptDWGPS.doc Staff Report Golf Car On Board GPS System for the Desert Willow Golf Resort January 13, 2011 Page 4 of.4 Fiscal Analysis No appropriation is required; funding is available in the 2010/2011 Desert Willow budget. The cost of the new GPS is $300,000 less than the previous four-year lease agreement. Submitted By: erine der, Sr�Manag (ment Analyst Department Head: McCarthy, ACM for Paul S. Gibson, Director of Finance n M. Wohlmuth, City Manager ent artin Alvarez, Redevelopment Manager � CITYCOUNCTG'AON APPROVED ✓✓ DENTED RECEIVED OTHER MEETING G DAT AYES: HL-eThI00111 NOES: ' • AI3SENT: G>77 ABSTAIN: VERIFIED BY: Lajajdm Original on File with City erk's Office G:\rda\Cathy Walker\Word Data\StfRptDWGPS.doc REQUEST FOR PROPOSALS (RFP) FOR THE CITY OF PALM DESERT AND DESERT WILLOW GOLF RESORT GOLF CART ONBOARD GLOBAL POSITIONING SYSTEM (GPS) City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611, Extension 415 November 24, 2010 G:\Rda\Cathy Walker\Word Data\REQUEST FOR PROPOSAL DW GPS 4 Doc.DOC 72500.00001 \5734873.1 DRAFT 11/24/10 TABLE OF CONTENTS Notice of Inviting Sealed Proposals.................................................................... Instructionsto Bidders........................................................................................ Vendor's Proposal............................................................................................... Bidder's Information............................................................................................ Appendix A (Specifications for GPS))................................................................. Page 2 72500.00001 \5734873.1 DRAFT 11/24/10 .3 .4 .7 11 12 CITY OF PALM DESERT NOTICE OF INVITING SEALED BIDS FOR GOLF CART ONBOARD GLOBAL POSITIONING SYSTEM (GPS) PUBLIC NOTICE IS HEREBY GIVEN that the City of Palm Desert invites sealed proposals to purchase a GOLF CART ONBOARD GLOBAL POSITIONING SYSTEM (GPS) for the Desert Willow Golf Resort. The City will receive the proposals in the office of the City Clerk up to the hour of 10 a.m. on Friday the 10th of December, 2010, at which time they will be publicly opened. Request for Proposal packets are available at City of Palm Desert, Redevelopment Agency, located at 73-510 Fred Waring Drive, Palm Desert, California 92260. It is the responsibility of the bidder to see that any bids sent through the mail have sufficient time to be in the hands of the City Clerk prior to the bid closing date and time. The receiving time at City Hall will be the governing factor on acceptability of bids. Electronic or telephone bids will not be accepted. Bids must be prepared on the approved proposal forms and submitted in a sealed envelope plainly marked on the outside "SEALED BID FOR GOLF CART ONBOARD GLOBAL POSITIONING SYSTEM — DO NOT OPEN WITH REGULAR MAIL." Bids should be addressed to Office of the City Clerk, City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert, California 92260. The complete proposal packet includes: 1) Vendor Proposal; and 2) Bidder Information forms. All forms must be fully completed and submitted for the proposal to be considered responsive. The City reserves the right to reject any or all bids, to waive any irregularity, to accept any bid or portion thereof, and to take all bids under advisement for a period of sixty (60) days. Requests for additional information should be directed to Catherine Walker, Senior Management Analyst, (760) 346-0611, Extension 415. BY ORDER OF the City Council of the City of Palm Desert. Dated this 24th day of November, 2010. RACHELLE D. KLASSEN, CITY CLERK Page 3 72500, 00001 \5734873.1 DRAFT 11/24/10 INSTRUCTIONS TO BIDDERS The City of Palm Desert is currently soliciting bids for the Golf Cart Onboard Global Positioning System (GPS) for the Desert Willow Golf Resort located at 38-995 Desert Willow Drive, Palm Desert, California 92260. Successful bidders should complete the Proposal Specifications and Bidder Information forms and submit in a sealed envelope plainly marked on the outside "SEALED BID FOR GOLF CART ONBOARD GLOBAL POSITIONING SYSTEM — DO NOT OPEN WITH REGULAR MAIL." The proposal is due in the office of the City Clerk no later than 10:00 a.m. on Friday, December 10, 2010. Proposals received after that time will not be accepted. Form of Proposal. The proposal must be made on the form of Vendor's Proposal, which is included in the Contract Documents and must be completely filled in, dated, and signed. Bids must be submitted on all items included in the Contract Documents. FAILURE TO BID ON ALL ITEMS MAY RESULT IN THE BID BEING REJECTED AS NON -RESPONSIVE. Documents and Specifications. The specifications attached as Appendix A are a sample of the product needs at the Desert Willow Golf Resort, but may not be inclusive of the total GPS needs, which may be required. License. To be considered, a potential bidder must have the appropriate license required under provisions of the California Business and Professions Code for the work covered in its Proposal when its bid is submitted. This includes a joint venture formed to submit a bid. Additionally, the Vendor must possess a current City of Palm Desert Business License or provide proof of exemption. If bidder does not possess a City of Palm Desert business license, the bidder must obtain a City of Palm Desert business license prior to entering into a contract. Interpretation of Documents. Discrepancies, omissions, ambiguities, and requirements likely to cause disputes and similar matters shall be promptly brought to the attention of the CITY, in writing, and to the attention of Catherine Walker, Senior Management Analyst. When appropriate, Addenda will be issued by the City of Palm Desert. No communication by anyone as to such matters except by Addenda affects the meaning or requirements of the bid documents. Addenda. CITY reserves the right to issue Addenda to the bid documents at any time prior to the time set to open bids. Each potential bidder shall leave with the CITY its name, address, phone number, fax number, and email address Page 4 72500.00001 \5734873.1 DRAFT 11/24/10 for the purpose of receiving Addenda. CITY will cause copies of Addenda to be mailed or delivered to such names at such addresses. To be considered, a Vendor's Proposal must list and take into account all issued Addenda. Bids, to be acceptable must acknowledge receipt of all Addenda. Bids. Total Price Bids are required for the Golf Cart Onboard Global Positioning System. The amount of the bid for comparison purposes will be the total of all items. The evaluation of bids and award of contract shall be the exclusive decision of the City. The City reserves the right to award separate schedules to separate bidders, or all schedules to a single bidder, and consider all relevant factors in making its decision. Approval of Purchase. Approval by the City Council, of a Vendor's Proposal shall authorize the Desert Willow Golf Resort to enter into a lease agreement (with purchase option) for the GPS system. The City shall mail or deliver to the selected bidder the Notice of Award of bid acceptance. City's execution of the purchase order is contingent upon Bidder's submission of all documents required of Bidder. Qualifications of Bidders. No award will be made to any bidder who cannot give satisfactory assurance to the City and the Desert Willow Golf Resort as to their own ability to carry out the terms of the purchase order, both from a financial standpoint and by reason of previous experience as a vendor on work of the nature contemplated in this request for proposal. The bidder may be required to submit its record of work of similar nature to that proposed for this bid, and unfamiliarity with the type of work may be sufficient cause for rejection of bid. Government Code Section 4552. In submitting a bid to a public purchasing body, the Bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section)* or under the Cartwright Act (Chapter 2 commencing with Section 16700) or Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and become effective at the time the awarding body tenders final payment to the Vendor, without further acknowledgment by the parties. *15 U.S.C.A. Chapter 15 Requests for Information (RFI). In the event of a request for information regarding bidding information, all requests must be sent to the City's Representative, attention Mrs. Catherine Walker, 73-510 Fred Waring Drive, Palm Desert, CA 92260, telephone number (760) 346-0611. All requests must be Page 5 72500.00001 \5734873.1 DRAFT 11/24/10 in writing and delivered or mailed to the above location. Faxed RFI's are not acceptable. All RFI are due no later than 4 p.m. on Friday, December 3, 2010. Equal Specification Substitutes. If potential bidders believe they know of a GPS System of equal specifications not mentioned in the Request for Proposal (RFP), then such potential bidder shall advise the City's Representative of such fact in writing giving all relevant information, no later than seven (7) calendar days prior to bid opening. The City shall promptly determine whether the substitute is substantially equal to the item specified, and approve or deny the request accordingly, and shall notify the vendor of the determination made, in writing of the decision. Unless the request is granted, substitution will not be permitted. Pricing of Products. It is beneficial to the bidder to provide pricing on all items so that an accurate price comparison can be made. Please provide the item's list price. Failure to provide the requested information may be considered non -responsive and result in disqualification of the proposal. Note, that the award of the purchase order is based on a number of criteria including price, and the bidder's ability to provide the requested products in a timely manner. Bidders should base their quote on the best available pricing to the City of Palm Desert rather than on a tiered basis or plan, as the purchase order will be awarded based on the quotes submitted. This is a non-exclusive purchase order, and serves only to select the primary provider of Golf Cart Onboard Global Positioning System for the Palm Desert Willow Golf Resort. The City and Desert Willow Golf Resort reserves the right to purchase from other vendors as necessary. 72500.00001\5734873.1 DRAFT 11/24/10 VENDOR'S PROPOSAL FOR GOLF CART ONBOARD GLOBAL POSITIONING SYSTEM FOR THE DESERT WILLOW GOLF RESORT Total bid amount is for the delivery, all taxes, freight, materials, incidental expenses, and direct and indirect costs associated with providing Golf Carl Onboard Global Positioning System to the Desert Willow Golf Resort. GENERAL INFORMATION The City of Palm Desert's Desert Willow Golf Resort is seeking proposals for a 48-month operational lease for a GPS System to equip the new golf cart fleet. The golf car fleet of 2011 Club Car Precedents and the GPS system must be 100% compatible with one another and meet the specifications listed in Appendix A. Please provide as much information as possible about the GPS product that is being proposed for use at the Desert Willow Golf Resort. Include product information sheets/specifications product warranty information and access to any relevant online materials for the proposed product. From the submitted materials the City must be able to determine that the proposed product meets the capability criteria outlined in Appendix A. If this information is not included, the proposal could be considered non -responsive. TRADE VALUATION The City of Palm Desert owns the following: (1) UpLink Base GPS System with Accessories (164) Uplink Inova (dash view) Display Units for Golf Cars (3) Uplink Graphic Caddy Units for Beverage Cars with Accessories (4) UpLink Graphic Caddy Units for Marshal Cars with Accessories (1) IQLink Fleet Manager (1) EventLink Advertising Manager that will be traded in against the operation GPS System lease proposed Consideration (trade-in value) shall be given in your bid proposal for this equipment. INCENTIVES Any other special consideration or promotional incentive will be considered in the overall bid package. Please provide values for special consideration and promotional incentives included in your bid package. Page 7 72500.00001 \5734873.1 DRAFT 11/24/10 GUARANTEED PURCHASE PRICE A guaranteed purchase price, if any, for purchasing the GPS system at completion of lease shall be included in the bid package. Purchase price should be on a per unit basis and on overall basis. Valuations shall be at a 48-month interval. WARRANTY AND SERVICE INFORMATION The bid shall include all warranty information. In addition, the bid shall provide for staff training on the use of and any required maintenance of the leased equipment. DELIVERY The delivery and installation of the GPS units will need to be coordinated with the arrival of the golf car fleet. The golf carts are expected to be delivered by or before January 1, 2011. ADDITIONAL INFORMATION All equipment and accessories necessary for the safe operation of the equipment shall be provided. The equipment furnished shall meet all Federal and State of California requirements. Please Refer to Appendix A for Specifications The total bid price is based on the anticipated 48-month (4 years) lease agreement. 1. GPS TOTAL EQUIPMENT COST 2. TRADE-IN VALUE 3. DELIVERY COST 4. SALES TAX 5. TOTAL GUARANTEED PURCHASE PRICE (AT END OF LEASE) 6. INCENTIVES 7. MONTHLY GPS SYSTEM LEASE PAYMENT Page 8 72500.00001 \5734873.1 DRAFT 11/24/10 *See attached bid pricing sheet TOTAL AMOUNT OF BID IN FIGURES (includes items No. 1 through No. 5, exclude No. 6 & 7) * see attached bid pricing sheet TOTAL AMOUNT OF BID IN WORDS (includes items No. 1 through No. 5, exclude No. 6 & 7) * see attached bid pricing sheet IN WITNESS WHEREOF TRACTO executed this proposal as of date set forth: r; BY: - Signature (Must V3e Notarized) Title:4F ��..�,.. . . ANGIE CROSBY HAMMOND Contractor * :"= MY COMMISSION # DD768197 r ^ EXPIRES March 12, 2012 (407) 398-0153 Fioridallota Service.com � � K Page 9 72500.00001 \5734873.1 DRAFT 11/24/10 State of California County of Acknowledgement Certificate } i .. t s °.: �, ,, On �'�r',�.E-�n�.,,!< �2010 ,before me, � � '��� �� .a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ---� -� Page 10 72500.00001 \5734873.1 DRAFT 11/24/10 MYC(";�ofISSION#DD76819T EXPIRES March 12, 2012 1'7) ��I) Fk)ddalloteryServke.com BIDDER'S INFORMATION The undersigned has carefully examined the documents pertinent to this Request for Proposal (RFP) and hereby offers and submits the above price in consideration of the Proposal Requirements, attached hereto and a part of this offer and proposal. GPSI Leas C Company: Authorized Signature: Contact Name (please print): set Fr edm n VP, Sales Title: Individual, Partnership, or Corporation: Limited Liability Company 1074 N. Orange Ave. Address: Sarasota City: FL, 34236 State, Zip: 888-575-2901 Telephone: 480-383-6799 FAX: seth.freedman@gpsindustries.com Email address: December 6, 2010 Date: 0 Number of Addenda Page 11 72500.00001 \5734873.1 DRAFT 11/24/10 APPENDIX A: GPS SPECIFICATIONS 1. General Information: The City of Palm Desert is seeking proposals for an operational lease of a roof mounted GPS System for one hundred seventy-two (172) Golf Cars, four (4) Marshal Cars, three (3) Beverage Cars, ten (10) Spare Golf Car units, (1) Spare Marshall Car Unit, and (1) Spare Beverage Cart Unit. 2. Specifications/Features to Include: A. Golf car units must be roof mounted B. Full course graphics and mapping C. Clubhouse computer & communication network D. Graphical hole overview for all holes with associated distance information E. Tee shot distances F. On -Cart scorecard G. Golf car messaging H. Real time cart positioning I. Pace of play reporting J. Cart look ahead K. Pin placement manager L. Ability to post daily ads for tournaments and special events M. Video capability for facility promotions and welcome messages N. Marshall cart features O. Video flyovers P. Tournament manager Q. Food & beverage ordering R. Freight and tax 3. Trade Valuation: The City of Palm Desert owns the following: (1) UpLink Base GPS System with Accessories (164) Uplink Inova (dash view) Display Units for Golf Cars (3) Uplink Graphic Caddy Units for Beverage Cars with accessories (4) UpLink Graphic Caddy Units for Marshal Cars with accessories (1) lQLink Fleet Manager (1) EventLink Advertising Manager that will be traded in against the operation GPS System lease proposed Consideration (trade-in value) shall be given in your bid proposal for this equipment. Page 12 72500,00001 \5734873.1 DRAFT 11/24/10 4. Additional Information: A. Prices shown in proposal must be on a per unit basis. B. Any exceptions to basic specifications must be noted. C. Bids shall include warranty and delivery time information. D. Bids shall include recommended spare parts with list prices and applicable discounts. E. Bidders, if requested by the City of Palm Desert, shall demonstrate their GPS System within one week after bid closing date or some other date mutually agreed upon. F. Bidder must provide staff training. G. Bid must include all warranties. H. Bid must include reference list. I. Bid must be 100 percent compatible with the features of the 2011 Club Car Precedent golf car. J. Bid must include total update of course graphics and hole mapping. IMPORTANT NOTES: The award of these purchases will be determined solely by the City of Palm Desert based on the overall value, lowest cost, and compatibility of the Golf Car Fleet and GPS Systems. The City of Palm Desert also has the right to refuse any and all bids. Page 13 72500.0000115734873.1 DRAFT 11/24/10 BID PRICING We are responding with a 48-month rental program which does not conform with the 48-month lease with purchase option exactly as specified in the RFP. The rental agreement is for 48- months and may be cancelled for any reason on the 12`h, 241h or 36th month with 90 days notice. - GPS RENTAL PRICE PER UNIT PER MONTH: $53.24 - MONTHLY GPS SYSTEM RENTAL PAYMENT (191 units): $10,168.84 - SALES TAX: 8.75% $889.77 (If the city is tax exempt, please provide exemption certificate) - TOTAL MONTHLY RENTAL PAYMENT: $11,058.61 - TOTAL TRADE IN VALUE: $20,337.68 (Trade in credit will be applied to the first 2 months rental payments. Regular monthly payments will begin the 3`d month of the term) Pricing includes all delivery charges for the installation. IN WITNESS WHEREOF CO _ 7TOR executed this proposal as of date set forth: r By: Signature (Must Bit Notarized) ' ANGIE QRO,98Y HAMMpND Title: � A U �' Contractor City of Palm Desert RFP Bid submission from GPS Industries, LLC December 6, 2010 My COMMISSION # DD768197 EXPIRES March 12, 2012 407) 3 rN-0153 Fbrtdaf�otary�rvica.com EXCEPTIONS / CLARIFICATION Exceptions: - Page 12, Section 2. J. Cart Look ahead feature is called blind shot warning - Page 12, Section 2. M. Video capability for facility promotions and welcome messages is not available at this time. The Visage system does allow for high quality .jpg images to be used for promotions and welcome messages however. Clarification: - Page 13, Section 4. C. Delivery time: Installation will start a minimum of 5 weeks from the date of confirmed order which includes the receipt of these items: o Notice of Award o Signed Purchase order from the City of Palm Desert o Signed Equipment Rental Agreement (included with this bid submission) GPSI will endeavor to coordinate delivery of the GPS system with ClubCar to the extent possible based on the receipt of order and the timelines associated. - Page 13, Sections 4.0 & G. With respect to warranty, maintenance services shall be provided according to the terms of Exhibit C in the enclosed Equipment Rental Agreement. Page 13, Section D. Spare GPS units are included in the bid pricing proposal. In -scope repairs are covered in the maintenance plan included in Exhibit C of the Equipment Rental Agreement and out -of -scope pricing is listed in Exhibit D of the Equipment Rental Agreement City of Palm Desert RFP Bid submission from GPS Industries, LLC December 6, 2010 CUSTOMER REFERENCE LIST: Eagle Springs Golf & Country Club Fresno, CA Kenny Collins 559-325-8900 Stonewall Country Club Gainesville, VA Gary Huebner 703-753-5101 Harbor Links Port Washington, NY Bob Lippiello 516-767-4817 The Experience at Koele Lanai City, HI Doug Daguay 808-565-4653 SilverRock Resort La Quinta, CA Randy Duncan 760-777-8884 City of Palm Desert RFP Bid submission from GPS Industries, LLC December 6, 2010 PRODUCT INFORMATION SHEETS / SPECIFIC ATIONS The Visage product brochure is attached. Additional information and online demo can be found at: hftp://www.qpsindustries.comN2salesdemo/demo index.html City of Palm Desert RFP Bid submission from GPS Industries, LLC December 6, 2010 For more information, visit visagegolf.com. VISAGE OGPSi '8033969 G PSi Leasing, LC Date: 12/3/10 Dear Customer: In executing the enclosed documents, it is essential that you carefully observe the following items: 1. Please ensure that your company's legal name and billing address appears correctly on page 1 as well as company type (LLC, Corp, etc.), company jurisdiction (the state in which your company is legally organized) and, if applicable, the organization ID number (provided by the state agency where your organization is legally organized). 2. Please provide your company's Tax ID number. This number is required in order to ship equipment. In the US, provide the 9-digit EIN. For Canadian and Mexican Customers, provide the appropriate business number required for importing which is typically your GST or RFC number, respectively. 3. Please have all documents where indicated signed and dated by an authorized party (corporate officer, partner, owner). The name and title of the signer must be legibly printed beneath the signature. 4. Please consult with your GPSI representative prior to making any changes. Any authorized changes (line-outs, additions, etc.) must be initialed by both parties to the contract. 5. Payments. It is essential to review the payment schedule on the enclosed agreement to understand the due dates of Payments. A Security Deposit is required with return of this agreement. 6. We have provided an automatic bank draft form to enroll in electronic funds transfer of the monthly payment amounts. Enrollment is required under the payment terms of the agreement. Please complete the EFT form and enclose a voided check. 7. Credit Application. Please complete and return the enclosed credit application along with the requested financial information outlined on the credit guidelines document. 8. The agreement stipulates that insurance coverage is required. Please contact your insurance agent to request that a Certificate of Insurance be prepared according to the enclosed instructions. The insurance agent should forward the certificate to GPSL as soon as possible. 9. If you are claiming a sales tax exemption, a valid certificate must be completed, signed and returned to GPSL. Enclosed with the documents is a blanket certificate of resale for your use. (Applicable to most US states & certain Canadian provinces). Final acceptance of the rental agreement cannot take place until GPSL has received all of the documents properly signed and dated and the Certificate of Insurance has been received. Please send all documentation via fax or email to: GPS Industries Attn: Amy Hoellrich Fax (480) 383-6799 amy.hoellrich@gpsindustries.com Thank you, we appreciate your business! GPSI Leasing, LLC GPSI Leasing, LLC 1074 N. Orange Ave. Sarasota, FL 34236 P$i leasingr : Equipment Rental Agreement Issued Date: 12/3/10 Customer Information Full Legal Name (the "Customer") Course Name (DBA) The City of Palm Desert Desert Willow Golf Resort Billing Address/ City/ County/ State/ Zip Type of Organization 73-510 Fred Waring Drive / Palm Desert / Riverside / CA / 92260 Municipality Equipment Location/ City/ County/ Stale/ Zip (if different) Organization Junsdiction Organization ID # 38-995 Desert Willow Drive / Palm Desert / Riverside / CA / 92260-1674 California Contact Name Title Phone 760-346-0015 Tax Identification Number Darrell Souza Director of Golf Email dsouza@desertwillow com Course Information # of Holes Golf Car Make/Model/Year/Power/Motor Controller 36 ClubCar / Precedent / 2011 / Electric i E ui ment Quantity Equip ment Description Feature Set Selection" 174 Visage Display Installed on Golf Car 4 Visage Display Installed on Marshal Car Visage RT+ 3 Visage Display Installed on Beverage Car 12 Spare Visage Display Units `See attached Exhibit A for Detailed Feature Set Description. Term and Pa ments Term (Months) Payment: @@ phis tax (USD) `P10r1s$•84 # Security Payment Months ] F M A M ] ] A S O N D 48 Deposit (�:ix?icatas ✓ ❑ ✓ ❑ ✓ ❑ ✓ ❑ ✓ ✓ ❑ � ✓ ❑ ✓ ❑ ✓ ❑ ✓ ❑ [DIE] paymen? month] ' The trade-in credit for the existing Inova Dash system will be applied to the first two rental payments. No monthly payments will be due until the 3rd month. TERMS AND CONDITIONS 1. System. Customer shall rent a mobile golf information system comprised of the equipment listed above enabled with the selected feature set described on Exhibit A (the "System"). 2. Term. The term of this Agreement (including any extensions hereto, the "Term") shall commence on the Effective Date and run for 60 months from completion of installation (defined as the Date of Completion on Exhibit B). Customer may cancel this Agreement at the 12th, 24th, or 36" month upon not less than 90 days written notice prior to the conclusion of the then current annual period. The Term of this Agreement shall be extended at the conclusion of the initial Term for additional one-year Terms unless terminated by either party upon not less than 90 days written notice prior to the conclusion of the then current Term. 3. Payments. Customer shall make all Payments stated in this Agreement according to the payment terms above beginning on the Date of Completion. GPSI requires one Payment as a security deposit in advance with return of this signed Agreement. The security deposit will be applied at the end of the initial or any extension term. Customer must enroll in the automatic payment plan to have all Payments made through electronic funds transfer ("EFT") for the Term. GPSL will draft the first month's Payment through EFT upon the Date of Completion. The second month's Payment will be due no less than 30 days after the Date of Completion. If the Date of Completion is between the 1st and 15t" day of the month, all Payments will be due on the 15"day of each month. If the Date of Completion is between the 161" and the last day of the month, all Payments will be due on the lstday of each month. All amounts payable under this Agreement are payable at GPSL's address below or at such other address as GPSL may specify in writing from time to time. Time is of the essence for all obligations arising hereunder. 4. Taxes and Insurance. Customer is required to provide and maintain insurance related to the System, and to pay any property, use and other taxes related to this Agreement or the System. (See sections 7 and 12.3 on the following pages). If Customer is tax-exempt, Customer agrees to provide satisfactory evidence of exemption. 5. Installation. GPSL shall deliver and install the System at Customer's location above based on the installation Terms and Conditions, set forth in Exhibit B. 6. Maintenance Service. GPSL shall provide maintenance service based on the Service Terms and Conditions, set forth in Exhibit C, for a period beginning with the Date of Completion and ending at the conclusion of the Term. SEE THE FOLLOWING PAGES FOR ADDITIONAL TERMS AND CONDITIONS THIS AGREEMENT IS SUBJECT TO THE TERMS AND CONDITIONS PRINTED ON THIS AND THE FOLLOWING PAGES, WHICH PERTAIN TO THIS AGREEMENT AND WHICH CUSTOMER ACKNOWLEDGES HAVING READ. THIS AGREEMENT IS NON -BINDING UNTIL ACCEPTED BY GPSL, CUSTOMER CERTIFIES ALL ACTIONS REQUIRED TO AUTHORIZE THE EXECUTION OF THIS AGREEMENT, INCLUDING CUSTOMER'S AUTHORITY HAVE BEEN FULFILLED. ACCEPTANCE OF THIS AGREEMENT is SUBJECT TO FINANCIAL QUALIFICATION AND CREDITWORTHINESS OF CUSTOMER. CUSTOMER SHALL PROVIDE A CREDIT APPLICATION AND FINANCIAL STATEMENTS AS REQUESTED BY GPSL. THIS AGREEMENT SHALL EXPIRE AND BE OF NO FORCE AND EFFECT IF NOT EXECUTED BY BOTH PARTIES WITHIN 30 DAYS AFTER THE ISSUED DATE ABOVE. GPSI Leasing, LLC ("GPSL") customer 1074 N. Orange Ave., Sarasota, Florida, 34236 The City of Palm Desert Authorized Signatory Authorized Signatory X X Print Name and Title Effective Date Print Name and Title Date 11242010 1(7) (GPSL Rental Agreement Terms and Conditions Continued) 7. Taxes. All Payments made under this Agreement shall be net to GPSL. Customer shall pay all taxes, tax pass along, assessments, and any sales, use, personal property privilege, value-added taxes, import duties or excise taxes incurred in connection with the System or otherwise with respect to this Agreement. If the System is subject to personal property tax, GPSL shall have the option to bill and collect these charges when assessed or to establish a personal property tax account ("PPTA"). If a PPTA is established, GPSL shall bill Customer and Customer shall pay GPSL a monthly assessment based on the average annual assessment charges in the State in which the System is located. GPSL shall have the right to change the monthly assessment based on the actual annual assessment. At the expiration of this Agreement, Customer shall pay us for any deficiency in the PPTA. If, at the expiration of this Agreement, there are any excess funds in the PPTA, GPSL shall pay that amount to Customer. 8. Ownership. GPSL is the owner and has title to the System. The only right, title or interest Customer shall have in the System shall be under the terms of this Agreement. This is a rental of personal property and Customer agrees to do everything necessary or reasonably requested by GPSL to ensure that the System shall be considered and remain personal property. Customer shall, at its own expense, keep the System free and clear of all liens, charges, claims and other encumbrances. GPSL may encumber, sell, lease, or otherwise finance the System, although such actions will not relieve GPSL of its obligations under this Agreement. Customer agrees to execute and deliver from time to time as requested any document necessary or desirable to evidence GPSL's or its assigns ownership of and all rights to the System. GPSL or its assigns may, upon notice to Customer, enter onto Customer's property and remove the System following the termination of this Agreement or at any other time authorized by this Agreement or by law. Without limiting the generality of the foregoing, to secure Customer's payments under this Agreement, Customer agrees to give GPSL a security interest in the System and all additions, attachments, upgrades, accessories and substitutions to it. You also agree to any assignment of that security interest. 9. Software License. Customer understands that GPSL does not sell its software. For the Term, GPSL grants Customer a nontransferable, non- exclusive license to use the software only in conjunction with the System and only as expressly authorized in this Agreement. "System Software" means standard system software included with the System provided to Customer. Customer shall (i) hold System Software in confidence and not disclose it to anyone other than its employees and consultants who require disclosure in connection with Customer's use of the System and who are subject to confidentiality obligations in substance at least as strict as these, (ii) not print, copy, modify, translate, alter, reverse compile, decompile or reverse engineer System Software, (iii) not remove any GPSL copyright, trademark or other proprietary notice from System Software and shall reproduce all such notices on copies made by Customer, and (iv) not transfer System Software or assign any license or rights regarding the System Software. 10. Force Maieure. GPSL shall not be liable for any interruption in service, delay in the delivery, or disruption of performance of the System resulting from any cause beyond its reasonable control or caused by acts of God, acts of Customer, acts of civil or military authorities, fires, strikes, floods, epidemics, governmental rules or regulations, war, riot, delays in transportation, or shortages. 11. Delinquency Charges. Payments not paid by 5 days after the Payment due date are subject to a late payment fee of ten percent (10%) of the Payment amount and subject to interest at the rate of two percent (2%) per month, or the maximum percentage allowed under applicable laws, whichever is less. Should any fee paid by Customer under this Agreement result in interest in excess of the maximum lawful rate, then such excess shall be automatically credited to Customer. 12. Customer Responsibilities. Customer hereby agrees to the following responsibilities as a part of this Agreement: 12.1. Customer agrees to store safely and properly secure the System indoors in a reasonably safe area protected from the weather when not in use. At all times, Customer shall use and operate the System in a careful manner, in compliance of all applicable laws and in compliance of any maintenance or operating manuals and instructions provided by GPSL. Customer shall not use or operate the System in a manner that may subject it to depreciation above the normal depreciation associated with its specified use. Customer acknowledges and agrees that it will not allow any repairs to the System or the replacement of System parts to be done by any person except GPSL or persons authorized by GPSL. Customer shall not make any additions, subtractions or alterations affecting the System without the written consent of GPSL. Customer shall use reasonable efforts not to permit any System to be abused by an employee, vandalized by any third party, permit the removal of any plate or markings put on the System by GPSL, or attach anything to or remove anything from the System. 12.2. Customer shall not install software unauthorized by GPSL on the System. 12.3. Customer assumes responsibility for all risk of loss to the System and all of its components from the time any of the components arrive at the Customer's premises. Customer shall procure "All Risk" property loss (personal business property & equipment) and general public liability insurance covering the system and its use and shall name GPSL and its assigns as additional named insured and loss payee. Customer shall provide GPSL with certificates or other evidence of insurance, acceptable to GPSL, before this Agreement Term begins. If Customer does not procure the insurance required, GPSL may obtain such insurance and pay the amounts due thereon. Customer will reimburse GPSL, upon demand, for the amount of such payment or cost of such performance. Even if the System is damaged, lost or stolen Customer shall fulfill all of its obligations hereunder. 12.4. If requested, Customer will reasonably cause third -parties to execute any leasehold or other waivers regarding the attachment of the System components to any car, maintenance vehicle, or other attachment to real or personal property on the premises. 12.5, At the termination of this Agreement, in case of default, if not extended, or otherwise modified, Customer agrees to provide GPSL with reasonable access to Customer's facility for the de -installation and removal of the System. Prior to GPSL's removal of the System, Customer shall be responsible for repair or replacement of any damaged or missing System components, if caused by Customer's misuse, abuse and/or negligence. GPSL will use normal care in the de -installation and removal of the system, which will be performed so as not to unduly disrupt the operations of the golf course. 13. General 13.1. Assignment. Customer acknowledges that GPSL may assign to a successor all or any part of its right, title and interest in this Agreement, and hereby consents to such assignments provided such assignee assumes all obligations of GPSL under this Agreement. In case of such assignment, Customer agrees to continue to perform all of its obligations under this Agreement. 13.2. Events of Default and Remedies. 13.2.1. In the event that the Customer violates any provision of this Agreement and GPSL believes the System or any property or rights of GPSL to be threatened, GPSL may immediately disable the System. In addition, in the event that Customer violates any provision of this Agreement and such violation continues for a period of at least twenty (20) days after notice in writing of such default from GPSL, Customer shall be deemed to be in default and GPSL may (at its sole election), in addition to any other legal or equitable remedy permitted by law: a. remove or disable the System; Initial 11242010 2(7) GPSL Rental Agreement b. terminate this Agreement and Customer's rights herein and retain any and all prior payments paid to GPSL by Customer ("Termination"). Upon Termination, GPSL may, in its sole discretion, collect as liquidated damages (and not as a penalty) a sum equal to the lesser of (i) six (6) times the highest monthly payment referenced herein; or (ii) the number of months remaining on the Term of this Agreement times the highest monthly payment referenced herein. The parties agree and acknowledge that the agreed upon liquidated damages for default is not a penalty or forfeiture, actual damages being difficult or impossible to measure, and the parties agree, acknowledge understand that the remedy of liquidated damages is a proper and mutually acceptable negotiated remedy for the parties due to the fact that the damages suffered by GPSL are not ascertainable at the time of execution of this Agreement and that such remedy takes into account the peculiar expenses and risks assumed by each party. Such liquidated damages shall be payable in immediately available funds not later than ten (10) days after the termination of this Agreement. C. In the event of termination of this Agreement, whether due to an Event of Default or otherwise, if Customer does not allow GPSL onto the Golf Course to de -install the System, and does not otherwise make the System available to GPSL to de -install, in addition to any other rights or remedies available to GPSL, Customer shall pay to GPSL any and all costs incurred by GPSL in collecting its System and any other amounts due to GPSL, including without limitation all legal fees and costs, whether or not suit is commenced, and further, in addition to the foregoing, Customer will pay the full monthly payment multiplied by 1.5 for each and every month after termination hereof that GPSL is without possession of the System. d. This Section 13.2.1, without limitation, shall survive termination of this Agreement. 13.2.2. In the event that GPSL violates any provision of this Agreement and such violation continues for a period of at least twenty (20) days after notice in writing of such default from Customer, GPSL shall be deemed to be in default and Customer may pursue such remedies as it may have in law or in equity; provided, however, that if GPSL cannot reasonably remedy the breach within twenty (20) days, the twenty (20) day period shall be extended for as long as GPSL diligently pursues such corrective action in a prompt and reasonable manner, not to exceed ninety (90) days. 13.2.3. In addition to the other events of default under this Agreement, either party shall be in default if (i) a petition in bankruptcy is filed by either party or (ii) if a petition in bankruptcy is filed against either party and is not dismissed within 30 days of the date it is filed. 13.3. Notice. All notices required, permitted or given in accordance with the provisions of this Agreement shall be in writing, and either hand - delivered or delivered by recognized overnight courier to the offices listed in the first paragraph of this Agreement or such other address as either party may designate by notice as specified in this section. 13.4. WARRANTIES CONTAINED HEREIN ARE IN LIEU OF ALL OTHER WARRANTIES AND CONDITIONS, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THOSE GOVERNING MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. THE LIMITED WARRANTY PROVISIONS SHALL BE GPSL'S SOLE LIABILITY WITH REGARD TO THE SYSTEM. GPSL SHALL, IN NO EVENT, BE LIABLE FOR DAMAGES, FOR LOSS OF PROFIT, GOODWILL, OR OTHER SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGE SUFFERED BY CUSTOMER OR ITS CUSTOMERS AS A RESULT OF THE USE OF THE SYSTEM RENTED UNDER THIS AGREEMENT, EVEN IF DAMAGES COULD HAVE BEEN FORESEEN AND WHETHER OR NOT GPSL HAS BEEN APPRISED BY CUSTOMER OR ITS CUSTOMERS FOR THE POSSIBILITY OF SUCH DAMAGES, CUSTOMER'S EXCLUSIVE REMEDY UNDER THE LIMITED WARRANTY PROVISIONS SHALL BE LIMITED TO, AT GPSL'S OPTION, REPAIR, PERFORMANCE, ADJUSTMENT AND/OR REPLACEMENT, OR ANY COMBINATION THEREOF IN AN AMOUNT NOT TO EXCEED THE PURCHASE PRICE OR COST OF SERVICES PROVIDED, AS REASONABLY DETERMINED BY GPSL, PROVIDED, HOWEVER, THAT GPSL HAS RECEIVED WRITTEN NOTICE OF ANY SUCH WARRANTY CLAIM, SPECIFYING THE NATURE THEREOF, WITHIN THE APPLICABLE WARRANTY PERIOD. THESE WARRANTIES ARE MADE ONLY TO CUSTOMER AND ARE NOT TRANSFERABLE TO ANY OTHER PERSON OR ENTITY. ALL WARRANTY CLAIMS MUST BE MADE BY AN AUTHORIZED REPRESENTATIVE OR AGENT OF CUSTOMER. EXCEPT AS OTHERWISE PROVIDED HEREIN, GPSL SHALL NOT BE LIABLE TO CUSTOMER, OR ANY OTHER PERSON OR ENTITY, FOR ANY CLAIM OR DAMAGES ARISING DIRECTLY OR INDIRECTLY FROM THE FURNISHING OF MATERIAL AND SERVICE SOLD HEREUNDER UPON WHICH ANY CLAIM OF WARRANTY LIABILITY IS BASED. 13.5. General. This Agreement, together with the exhibits and schedules referred to in it, constitutes the entire agreement between the parties pertaining to the within subject matter and supersedes any prior understandings or oral or written. This Agreement may not be varied, modified, or amended except in writing signed by the parties. Waiver by either party of any breach or violation or default of any provision of this Agreement will not operate as a waiver of such provision or of any subsequent breach or violation or any default. The failure or refusal of any party to exercise any right or remedy shall not be deemed to be a waiver or abandonment of any right or remedy. If any term of this Agreement is for any reason invalid or unenforceable, the rest of the Agreement remains fully valid and enforceable. The headings in the Agreement are for convenience of reference only and do not constitute a part of it. The headings do not affect its interpretation. This Agreement shall be governed by and construed in accordance with the procedural and substantive laws of the State of Delaware. This Agreement may be executed by facsimile and/or electronic signature. The parties agree that this Agreement was fully negotiated by the parties; therefore, no provision of this Agreement shall be interpreted against any party because such party or its legal representative drafted such provision. All work performed by GPSL in connection with the services to be performed under this Agreement shall be performed by GPSL as an independent contractor and not as the agent of Customer. GPSL may subcontract any or all of the work to be performed under this Agreement but shall retain full responsibility for the work so subcontracted. 13.6. Arbitration. The parties each hereby irrevocably consent to arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association ("AAA"), for the resolution of all disputes arising under or in connection with this Agreement. Any such arbitration shall be conducted by one arbitrator selected by the AAA. The parties waive any all rights to discovery, including without limitation the taking of depositions. The arbitrator shall not have subpoena power. The arbitrator shall use their best efforts to conclude such arbitration and issue a decision within 30 days after the selection of the arbitrator. The decision of the arbitrator shall be final and binding upon the parties, and judgment in accordance with the decision may be entered in any court having jurisdiction thereof. 13.7. Supplemental or Replacement Provisions. Notwithstanding any provision to the contrary in this Agreement, supplement or replacement provisions, if any, shall be set forth on Exhibit E attached hereto. Initial 11242010 3(7) GPSL Rental Agreement GP& ILeasing,s EXHIBIT A Visage System Description Equipment Quantity Equipment Description Feature Set Selection 174 Visage Display Installed on Golf Car 4 Visage Display Installed on Marshal Car Visage RT+ 3 Visage Display Installed on Beverage Car 12 Spare Visage Display Units The System will be enabled with the selected Feature Set as described below: Feature Set I Description i0 Mapping, Full Course Graphics, • Club House Computer, • Wi-Fi Coverage of Cart -barn & Staging Area, Visage • Graphical Hole Overview for all holes with associated distance information, • Tee Shot Distances, • On -car Scorecard, • Action Zone with Messaging. All Visage Features plus, • Cart Positioning, Visage RT Pace of Play, • Two-way Messaging, • Blind Shot Warning, • Pin Placement Manager, • Marshall Car Features. All Visage RT Features plus, Visage RT+ Video Flyovers, • Tournament Manager, • Food & Beverage Ordering. 11242010 Initial GPSL Rental Agreement 4 (7) GPSi Leasing,.x EXHIBIT B Installation Terms and Conditions 1. To facilitate installation, Customer agrees to provide the following: a. Access to all areas of the site where System is to be installed. b. Facility information that Customer can provide such as GPS data, mapping data, facility design, graphics, photographs or aerial photos. c. Physical, mechanical, and electrical modifications reasonably requested for System installation. d. An unrestricted broadband Internet connection for the duration of this Agreement for System installation, monitoring and maintenance service. The internet connection must provide the following minimum speeds as measured by online testing tools found at sites such as www.speakeasy.net: Minimum 120 carts or more 160 carts or more Download speed (Mbit/sec): 1.5 2.25 3.0 UpLoad speed (Mbittsec): 0.5 0.75 1.0 e. Battery power to the Golf Car -mounted units at all times, and Customer agrees to allow power to be drawn from the Golf Course irrigation system (or other power sources) to supply radio repeater stations as needed. GPSL requires Customer must use deep -cycle batteries for all gas powered vehicles on which display units will be installed. f. The golf car fleet on -site and ready for installation. g. Up to 8 room nights for GPSL installation staff (if Golf Course is a destination or resort facility). h. Not less than two Customer staff members full time for three days (per 18 holes) for the installation of the System display units. Customer's personnel will be trained on the installation, maintenance and replacement of the display units. 2. Training. GPSL shall provide System training at the time of installation. Customer shall make available, as requested by GPSL, all pertinent staff members for training. In the event Customer requires additional training after installation of the System, such training shall be quoted and billed as on -site non -warranty Service. 3. Customer Representative. Customer shall designate one employee to act as the liaison between GPSL and Customer ("Customer Rep"). Customer Rep is responsible for facilitating all Customer obligations as required under this Agreement. 4. Completion. When GPSL has completed installation of the items required by this Agreement, GPSL will notify Customer and the date of that notice shall be the "Date of Completion" for purposes of this Agreement. Upon the Date of Completion, Customer agrees to promptly execute and deliver to GPSL the System delivery and acceptance certificate, which shall be provide by GPSL. Customer shall not withhold such execution and delivery documentation provided the System is performing in a commercially reasonable manner. Without limiting the foregoing, and without providing a defense to Customer if customer unreasonably withholds acceptance of the System, if Customer intends to withhold acceptance of the System, Customer shall provide GPSL written notice of Customer's intention to withhold acceptance and the specific reasons for such withholding of acceptance and further the specific actions Customer requests that GPSL take in order for Customer to accept installation of the System. In the event that Customer does not provide GPSL with a written notice of intent to withhold the System delivery and acceptance documentation and the reasons therefore within three (3) days of the Date of Completion, the System shall be deemed to be accepted in all regards; provided however, this shall not relieve Customer of its obligation to provide written delivery and acceptance documentation to GPSL as provided herein and failure to provide written acceptance shall be a material and substantial breach of this Agreement. 5. Additional Services. This Agreement provides for installation of the System based on the golf course facilities as configured on the date of this Agreement. Customer acknowledges that modifications to the System required due to environmental changes (such as vegetation growth or new buildings) or changes requested by Customer after the Date of Completion will be provided for an additional charge unless specifically provided on an Exhibit E. Additional services include such services as mapping, wireless network reconfiguration, hardware installation, hardware relocation, software configuration and graphics production. Initial 11242010 GPSL Rental Agreement 5 (7) Mitsaww., EXHIBIT C Service Terms and Conditions 1. Scope of Service. 1.1. Defective Components. GPSL shall provide maintenance service as provided for in paragraph 2.3 and 2.4, at its expense, to repair, modify or replace System components, as necessary that are defective in workmanship ("Service"). GPSL does not warrant that the operation of the System shall be uninterrupted or completely error -free. 1.2. Exclusions. Service does not cover System damage due to external causes, including: accident abuse, misuse, theft, vandalism, weather, acts of God, defects or failure of electrical power, any software damage caused by unauthorized use (including the introduction of malicious programs, ad -ware or viruses), maintenance of the System by unauthorized personnel, changes in the clubhouse or golf course, changes in golf car dimensions that requires new car mounting hardware, repair of damaged equipment (over and above normal wear and tear), remedying post -installation radio interference due to new construction (power lines, communications antennae), remedying destruction of any cabling, including electrical disturbances. 2. Customer Responsibilities 2.1. Problem Notification. Customer agrees to promptly notify Customer Support in the event of any System or component failure and provide diagnostic assistance to support GPSL's service efforts. 2.2, To Contact Customer Support. Customer shall have reasonable access to Customer Support during business hours. Customer Support provides user support, troubleshooting, and diagnostic assistance and is Customer's point of contact for reporting system problems or requesting service. a. For all routine requests and status inquiries, contact Customer Support via email to support@gpsindustries.com. b. To report emergency or critical system issues contact Customer Support by calling the toll free Customer Support hotline at 888-575-2901. 2.3. Component Replacement. Customer agrees to perform the task of changing out replacement components provided by GPSL. Customer will be billed for repair or replacement of returned components that have been damaged due to causes not covered by Service as described in paragraph 1.2. 2.4. RMA request for defective components. A Return Materials Authorization (RMA) number is required for the return of any defective component. To obtain an RMA, Customer must contact the Customer Support center at 888-575-2901. If Customer Support determines that the component needs to be returned for repair, the Customer Support representative will issue an RMA number. Customer is then responsible for properly following procedures for returning components as provided by Customer Support upon issuance of an RMA number. Any request for special handling such as expedited repair, overnight return delivery, or non -business day delivery may be subject to additional charges billable to Customer. GPSL will pay for return shipment to Customer and Customer agrees to pay for shipment of components returned to GPSL. Normal turn -around time for factory repairs is 14 days but can vary depending upon seasonal workload. 3. Definition of Service Elements 3.1. Remote Diagnostics. GPSL accesses the course System via the Internet to perform system diagnostics, remote health monitoring or specific troubleshooting procedures to detect, identify or correct failures. 3.2. Software Upgrades and Enhancements. GPSL shall provide software maintenance for the System Software. Software maintenance provides for bug fixes, patches, corrections, upgrades and enhancements as available. Software upgrades do not include new software features or hardware product offerings that are priced separately_ 3.3. On -site Service. If a problem cannot be resolved through telephone support or by shipping a replacement component, GPSL may dispatch a technician to Customer's site to address the problem; however, regardless of the source of the problem, travel expenses associated with site visits are chargeable to Customer and shall be quoted on a case -by -case basis. 3.4. Fleet Change Out. A fleet change out may require on -site labor by a GPSL representative or additional cart mounting hardware or both and services and materials therefore are billable at the appropriate time and materials rate per Exhibit D. Customer shall notify GPSL 90 days in advance for any fleet change out that requires GPSL assistance. 11242010 Initial GPSL Rental Agreement 6 (7) F Mi i easing. , EXHIBIT D Pricing of Additional Services Services that are excluded from Exhibit C (Service Terms and Conditions) or that are considered additional in support of Customer requested changes to the System are provided for an additional charge according to the prices below. All prices and terms for additional services are subject to change. Description Prices Graphical Changes US$60 / half hour Mapping Changes US$60 / half hour plus travel and expenses at reasonable cost On -site service for repairs covered under Service Travel and expenses at reasonable cost On -site service for items not covered under Service (due to external causes or at customer's requests for additional services) Repair of GPS unit for damage not covered under Service US$400 per half day on site plus $40 per hour travel time to and from site plus travel and expenses at reasonable cost; plus any applicable material charges. $395 per unit plus shipping back to Customer Fleet Replacement (like -to -like car changeover; i.e. Club Car Precedent electric to Club Car Precedent electric which requires no additional or replacement mounting hardware), Customer may chose alternatives a or b (90 days advance notice required): a- By Customer (3-4 people) + 1 GPSL employee b- By GPSL (3-4 people) on -site Fleet Replacement (different type cars) (90 days advance notice required): US$1,500 plus travel and expenses at reasonable cost US$3,000 plus travel and expenses at reasonable cost Quoted on case by case basis Payment Terms for Additional Services: For orders up to US$1,500. GPSL will provide services upon receipt and confirmation of the order. Payment will then be due upon delivery of services. For orders of US$1,500 or more, GPSL requires a signed purchase order or a deposit payment equal to 50% of the order price with the final payment due upon delivery of services. GPSL at its sole discretion reserves the right to hold orders for accounts that have outstanding payables beyond terms. Scheduling of services depends on material lead-times and the backlog of service orders at the time of order confirmation. Initial 11242010 GPSL Rental Agreement 7 (7) `GPISinldustries,, GPSI ADVERTISING AND MARKETING AGREEMENT THIS MARKETING AGREEMENT (this "Agreement") is by and between The City of Palm Desert ("Customer') and GPS Industries, LLC, 1074 N. Orange Ave., Sarasota, FL 34236 ("GPSI"). Reference is made to that certain Equipment Rental Agreement dated of even date herewith; 1. Advertising Rights and Proceeds. GPSI retains all rights to advertising space on the System and ancillary System services and features and may sell ads for placement on and in connection with the System. Customer retains right of approval for such ads and where approved will receive 10% of net revenues, if any. Net advertising revenue is defined as gross advertising revenue received by GPSI less sales expenses and administration charges incurred by GPSI. Any information and data arising out of or in connection with Customer's use of the System shall be owned jointly by GPSI and Customer. 2. Marketing. Customer shall provide GPSI with a reasonable number of complimentary golf rounds and rooms stays (if Customer is a destination or resort golf facility) for demonstration to prospective partners or customers, and for the purposes of verifying the system on an ongoing basis. GPSI shall provide reasonable advance notice to Customer, which will be subject to availability. Customer shall allow GPSI to reference Customer in various marketing material or corporate literature, and to the use of approved photos of the Customer's facility for various marketing materials or media. Customer further agrees to allow GPSI to reference it in a press release or other media announcing it as a new location for its System. 3. Independence of Agreements, This Agreement is independent of and separate from the Equipment Rental Agreement. No provision of this Agreement has any effect on the terms and conditions of the Equipment Rental Agreement. 4. General. This Agreement, together with the exhibits and schedules referred to in it, constitutes the entire agreement between the parties pertaining to the within subject matter and supersedes any prior understandings or oral or written. This Agreement may not be varied, modified, or amended except in writing signed by the parties. Waiver by either party of any breach or violation or default of any provision of this Agreement will not operate as a waiver of such provision or of any subsequent breach or violation or any default. The failure or refusal of any party to exercise any right or remedy shall not be deemed to be a waiver or abandonment of any right or remedy. If any term of this Agreement is for any reason invalid or unenforceable, the rest of the Agreement remains fully valid and enforceable. The headings in the Agreement are for convenience of reference only and do not constitute a part of it. The headings do not affect its interpretation. This Agreement shall be governed by and construed in accordance with the procedural and substantive laws of the State of Delaware. This Agreement may be executed by facsimile and/or electronic signature. The parties agree that this Agreement was fully negotiated by the parties; therefore, no provision of this Agreement shall be interpreted against any party because such party or its legal representative drafted such provision. All work performed by GPSI in connection with the services to be performed under this Agreement shall be performed by GPSI as an independent contractor and not as the agent of Customer. GPSI may subcontract any or all of the work to be performed under this Agreement but shall retain full responsibility for the work so subcontracted. 5. Arbitration. The parties each hereby irrevocably consent to arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association ("AAA"), for the resolution of all disputes arising under or in connection with this Agreement. Any such arbitration shall be conducted by one arbitrator selected by the AAA. The parties waive any all rights to discovery, including without limitation the taking of depositions. The arbitrator shall not have subpoena power. The arbitrator shall use their best efforts to conclude such arbitration and issue a decision within 30 days after the selection of the arbitrator. The decision of the arbitrator shall be final and binding upon the parties, and judgment in accordance with the decision may be entered in any court having jurisdiction thereof. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the Effective Date. GPS Industries, LLC The City of Palm Desert Authorized Signatory Name Authorized Signatory Title Effective Date Title 08232010 CL Grit teasing,.,. AUTOMATIC PAYMENT PLAN Electronic Funds Transfer (EFT) Enrollment EFT enrollment is required according to the payment terms of the Equipment Rental Agreement. Please complete the information below and return this form along with a voided check. Authorization: Customer hereby authorizes GPSI Leasing, LLC ("GPSL") to deduct all payments when due under this Agreement, according to the terms and conditions of the Agreement from the account listed below by electronic funds transfer for the Term of the Agreement. Authorized Signer's Name Name on Bank Account Transaction Date 1 St Day of Month Amount of Rent $ (Applicable tax will be added to this amount) Bank Account Number Routing Number - - IT I I I Complete Name of Bank - Mailing Address of Bank Date and Signature Date Bank Signature of Depositor (Required for banks located outside the US SWIFT CODE If you wish to have this completed form returned to you as confirmation of this enrollment, please provide the following: Name: Fax Number: THIS INFORMATION TO BE COMPLETED BY GPSL EFT payments will begin with the payment due on GPSi t®asing,,,, Insurance Instructions The City of Palm Desert ("Customer") has rented or will be renting equipment from GPSI Leasing, LLC ("GPSL"). The Customer is required to provide GPSL with the following insurance coverage: A. "All Risk" personal business property and equipment insurance covering the complete System including stationary equipment and mobile GPS displays mounted on vehicles (as listed in the Rental Agreement) owned by or in which GPSL has a security interest, in an amount not less than the full replacement value of the equipment, with GPSL named as loss payee. Replacement values: Stationary equipment: Club House Computer, Wireless Equipment — $10,000; Mobile equipment: GPS displays mounted on vehicles — $850/unit. B. Public Liability Insurance naming GPSL as an additional insured with the proceeds to be payable first on the behalf of GPSL to the extent of its liability, if any. The amount of the Public Liability Insurance shall not be less than $1,000,000.00, combined single limit. C. Each policy shall provide that: (i) GPSL will be given not less than thirty (30) days prior written notice of cancellation or non -renewal, (ii) it is primary insurance and any other insurance covering GPSL shall be secondary or excess of the policy and (iii) in no event shall the policy be invalidated as against GPSL or its assigns for any violation of any term of the policy of the Customer's application therefore. A certificate evidencing such coverage should faxed and mailed to GPSL at the following address: (480) 383-6799 (Fax) GPS Industries Attn: Betty Temple 2121 SW Broadway, 2nd Floor Portland, OR 97201 Proof of insurance is required before GPSL can release shipment of equipment to the site. BLANKET CERTIFICATE OF RESALE Company Name: The City of Palm Desert Address: 73-510 Fred Waring Drive / Palm Desert / Riverside / CA / 92260 State of Sales Tax Registration: This is to certify that all, material, merchandise, or goods leased or rented by the undersigned from: After GPSI Leasing, LLC 1074 N. Orange Ave. Sarasota, Florida, 34236 Is rented for the following purpose: (Date) Resale as tangible personal property Rental as tangible personal property To be incorporated as a material part of other tangible personal property to be produced for sale by manufacturing, assembly, processing or refining. To be exported for sale, use or consumption outside the continental limits of the United States. Exemption under Federal, State, or local Governmental Laws. Other: This certificate shall be considered a part of each order, which we shall give unless otherwise stated. This certificate is to continue enforce until evoked. Certificate Number: By: Title: Instructions: (Please print or Type) 1. State of Registration: The State with which your certificate number is filed. Please complete one form for each State of registration. 2. Date: Fill in approximate date of first lease or rental with GPSI Leasing, LLC. 3. Check the most appropriate intended purpose of the leased equipment. 4. Certificate Number: Indicate your certificate number issued by the state in which you are registered. 5. By: Signature of person authorized by your Company. GPSi easing. BUSINESS INFORMATION Full Legal Name (Include DBA If Applicable) Tax Identification # Billing Street Address City County Equipment Location (If different from above) (Street Address/City Business/Credit Contact Name and Title Phone # State/Province Zip Course Contact Name and Title, if different Phone # Contact Email _Corporation _Partnership _Proprietorship _LLC _LLP _Municipal Tribal Business Description (ie Daily Fee, Resort, Municipal) Years Under Current Owner Years in Operation Date & State of Incorporation # of Holes at Facility # of Annual 18 Hole Rounds Equipment is: New _Replacement _Additional Inventory Public Private If Yes, # of Members _Member Owned _Equity Membership Semi -Private Other Investor Owned Other GOLF CARS Type of Car Year Number of Cars Contract Thru Gas or Electric? Name of Lessor GPS SYSTEM TURF EQUIP. Name of System Lease/Own Contract Thru ..__..........._--._....-..—,-_.---................. ----......-._...._._..._.....-.......-.._..-._...-_.....----- Type Lease/Own Contract Thru Existing Payments -- - -- --- - ---- Existing Payments Name of Lessor — --- ..__...---- Name of Lessor GOLF COURSE Financed by: OWNERS Name (Principal/Partner/Officer) 77' Social Security # Home Street Address (Principal/Partner/Officer) City/ State/Zip Phone w/Area Code OWNERS Name (Principal/Partner/Officer) % Ownership Social Security # Home Street Address (Principal/Partner/Officer) City/ State/Zip Phone w/Area Code BANK Business Bank Reference Name Checking/Loan Account # REFERENCE Address (City, State) Account/Loan Officer SEND Attention Phone #: Email DOCUMENTS TO Address (City, State, Zip) Phone # I hereby certify: (i) the information provided above is true and correct, (ii) you are hereby authorized to investigate all bank, credit references, and said references are hereby authorized to release any requested information to you or your nominee, (iii) such authorization shall extend to obtaining a credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (iv) this information may be transmitted by us to you and by you to underwriter/s for the purpose of granting us credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (v) 1 acknowledge my rights under the Fair Credit Reporting Act, (vi) I agree to receive communication via phone, fax or email and (vii) this request is for business and not consumer purposes. X Authorized Signatory Date 08DEC2009 GPSI uwsft. Credit Application Guidelines In general, the following financial information is required for all applications: A. If you have been in business for 3 or more years: Completed and signed credit application. 2. Last 2 year-end financial statements on the business, and • Most recent year-to-date financial statement on the business. Financial statements referred to above should include at a minimum a balance sheet, income statement. Be sure to indicate the total number of annualized 18 hole round equivalents on the credit application form. If there have been a decline or softness in number of rounds, please include a short note regarding what occurred and what has been done to remedy the situation. B. If you have been in business for less than 3 years: 1. Completed and signed credit application. 2. Information regarding Golf Industry Experience of Majority Owners. 3. If this is a new course, provide Opening Balance Sheet and Pro Forma statements and feasibility study. 4. If the course is open, provide complete year-end (all years available) and interim (within last 90 days) Balance Sheet, Income Statements. 5. Be sure to indicate the total number of annualized 18 hole round equivalents on the credit application form. If there have been a decline or softness in number of rounds, please include a short note regarding what occurred and what has been done to remedy the situation. 08DEC2009 Face Customer .:" N�1 '.. VISAGE OGPSi o }\\\ \\�\ \\\\ \\\\ !f). 1999 \cE > }d ƒf7 (\\\ _ - ;{ � k E f- o \ $ §)C. \ \} / 0 \ § _\\ 0 § '- § 0 u, - =8«® 000 - § }\\ \ I o l 1 I O G y � o y � 4 4 n s+ � E .. i Ali a °i. �pp N N m yy O E. WE c N A cn LL F £6 w - � w O E L E N 7 O J G U p o yC N!� c Y.A mg' as u< E m m Y Y a ? G C -�>s 53 /\ /U &_ \\ M- m ... \}.. \/ } 7} { Z > !ƒm -E ;! ; \}\\ } } ( } - �.l, tuTD �-)�|)/ |. \§\}!f a0..° Eli U-U LL- 00- LAJCa CL