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1 <br />SERVICES AGREEMENT <br />This Services Agreement (“Agreement”) by and between SKY INSURANCE <br />TECHNOLOGIES, LLC, a South Carolina limited liability company located at 1325 Miller Road, Suite <br />C, Greenville, SC 29607, and the City of Everett, (“Client”) a municipal government located at 2930 <br />Wetmore Ave, Suite 5A Everett, WA 98201, is effective as of the date of Client’s electronic signature <br />(“Effective Date”). <br />BACKGROUND <br />Sky Insurance Technologies, LLC and/or its subcontractors (collectively, “ACA Reporting Service”) <br />provide a service to prepare and file Internal Revenue Service reports to document employee and dependent <br />enrollment in employer sponsored health plans as required under Sections 6055 and 6056 of the Internal <br />Revenue Code (the “Code”), enacted by the Patient Protection and Affordable Care Act, or other similar <br />reporting required by law to administer health insurance subsidies or tax credits. <br />NOW, THEREFORE, in consideration of the mutual agreements and valuable consideration set <br />out below, the parties agree as follows: <br />1.Services. Subject to the obligations of Client under this Agreement, ACA Reporting Service shall <br />provide to Client those services described on Addendum 1 (the “Services”) attached hereto and <br />incorporated herein by reference. <br />2.Term. Unless sooner terminated as provided in this Agreement, this Agreement shall continue for an <br />initial term of one (1) year, beginning on the Effective Date. <br />Except to the extent (if any) otherwise provided in this Agreement, Client may extend the term of this <br />Agreement (subject to the "Termination" sections below), on the same terms and conditions as in effect <br />just before the then-current end of the term, for up to one period of one (1) year by providing written <br />notice to Sky Insurance Technologies LLC no later than sixty (60) days before the then-current end of <br />the term. Payment for the period of the extension shall be considered sufficient written notice and <br />extend the term of this Agreement. The cost of services and payment for the period of the extension is <br />based upon the products and services selected by Client as well as the rates as in effect for the Services <br />on the date of the extension of this Agreement. <br />Client may not extend the term of this Agreement if at the time of its notice of extension it is in material <br />breach of this Agreement. <br />3.Performance of Services. ACA Reporting Service will arrange to provide the Services to Client as <br />specified in this Agreement. <br />3.1 ACA Reporting Service warrants to Client, and to no other party (including individuals who <br />receive an IRS form created from the Services), that ACA Reporting Service will use <br />commercially reasonable care in providing the Services under this Agreement. As ACA <br />Reporting Service’s sole liability and Client’s sole and exclusive remedy under this Agreement <br />for erroneous information