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ARTICLE 4 TERM OF CONTRACT Section 4.1 Contract Term This Contract will be effective January 1, 2009, and will continue for a period of six months, until June 30, 2009 and may be extended by mutual agreement of the parties on a month-to- month basis thereafter. Section 4.2 Breach/Default Failure by either party to this Contract to perform any of its provisions will constitute a breach of Contract, in which case, either party may require corrective action within ten days from date of receipt of written notice citing the exact nature of such breach. Failure to take corrective action or failure to provide a satisfactory written reply excusing such failure within the prescribed ten days will constitute a default of Contract. The defaulting party will be given a 20 day period within which to show cause why the Contract should not be terminated for default. City Council may take whatever action as its interest may appear, resulting from such notice. The City reserves the right to enforce the performance of the Contract in any manner prescribed by law in the event of breach or default of the Contract, and may Contract with another party with or without solicitation of proposals or further notification to the Contractor. At a minimum, the Contractor will be required to pay any difference in the cost of securing the services covered by this Contract, or compensate for any loss or damage to the City derived hereunder should it become necessary to contract with another source because of this default, plus reasonable administrative costs and attorney's fees. In the event of termination for default, the City, its agents or representatives, will not be liable for loss of any profits anticipated to be made under this Contract. Section 4.3 Termination By City The City reserves the right to terminate this Contract upon 30 days written notice for any reason deemed by City Council to serve the public interest, or resulting from any governmental law, ordinance, regulations, or court order. No termination for convenience will be taken with the intention of awarding the same or a similar Contract to another source. In the event of such termination the City will pay the Contractor those costs directly attributable to work done or supplies obtained in preparation for completion or compliance with this Contract prior to termination. Provided, however, that no costs will be paid which are recoverable in the normal course of doing business in which the Contractor is engaged, or costs which can be mitigated through the sale of supplies or inventories. In the event City pays for the cost of supplies or materials obtained for use under this Contract, these supplies or materials will become the property of City and will be delivered to the City at the place designated by the Director. The City will not be liable for loss of any profits anticipated to be made under this Contract. Section 4.4 Funding Availability Page 7