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ORIGINAL AGREEMENT FOR PROFESSIONAL SERVICES - PARKING CITATION PROCESSING AND ADJUDICATION THIS AGREEMENT made and entered into this day of , 1999, by and between Turbo Data Systems, Inc. (TDS), a California Corporation, and the City of Redwood City, a municipal corporation of the State of California (hereinafter "Customer"); WHEREAS, TDS and the Customer desire to enter into an Agreement whereby TDS will process parking citations for the Customer pursuant to the terms and conditions set forth herein, including all applicable State and local laws and regulations in effect now and during the term of this Agreement, and WHEREAS, TDS is a firm specializing in the provision of parking citation processing and related services, with considerable knowledge and experience in the field. NOW, THEREFORE, in consideration of the mutual covenants, conditions, representations, and warranties contained herein the parties hereby agree as follows: 1. PROFESSIONAL SERVICES TO BE PROVIDED. TDS shall be independently responsible for providing the services described in the scope of work attached hereto as Exhibit "A" and incorporated herein by reference. TDS agrees to extend these services to all San Mateo County Cities and Agencies which issue parking citations and wish to receive such services from TDS. Courier and banking services will be negotiated separately with new agencies not a part of the original RFP process. 2. TERM. This Agreement shall become effective June 30, 1999 for a period of three (3) years. 3. OPTION. Upon the expiration of this Agreement, Customer shall have the option, in its sole and absolute discretion, of extending this Agreement for an additional three (3) years on the terms and conditions contained herein, except that TDS may propose an increase of six (6) percent or less to the compensation amounts in Exhibit "A". Customer shall notify TDS in writing at the address listed in the NOTICE section of this Agreement of its intention to extend this Agreement at least one hundred-twenty (120) days prior to the expiration of this Agreement. 4. CONSIDERATION. In consideration for services performed by TDS as provided in this Agreement, Customer shall pay TDS pursuant to the terms set forth in Exhibit "A" which is attached hereto and incorporated herein by this reference. 5. PAYMENT OF FEES. Charges determined on the basis set forth in Exhibit "A" shall be billed on a monthly basis in arrears and payment therefore shall be made within fifteen (15) days after submission of each separate invoice. 6. CALCULATION OF AMOUNTS DUE COUNTY. TDS shall calculate amounts due the County of San Mateo as required by State law and forward the figures (Paid Citation Distribution Report) to Customer in a timely manner so that Customer is able to remit the required funds to the County of San Mateo before the date due. Page 1 of 5