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ORIG9NAL <br />EXCLUSIVE AGREEMENT BETWEEN THE CITY OF REDWOOD CITY <br />AND REDFLEX TRAFFIC SYSTEMS, INC. FOR <br />PHOTO RED LIGHT ENFORCEMENT PROGRAM <br />This Agreement (this "A~reement") is made as of this 23rd day of April, 2007 by and <br />between Redflex Traffic Systems, Inc. with offices at 6047 Bristol Parkway 1St Floor, <br />Culver City, California 90230 ("Redflex"), and The City of Redwood City, a charter city <br />and municipal corporation of the State of California, with offices at 1017 Middlefield <br />Road, Redwood City, California 94064 (the "Customer"). <br />RECITALS <br />WHEREAS, Redflex has exclusive knowledge, possession and ownership of certain <br />equipment, licenses, applications, and citation processes related to digital photo red light <br />enforcement systems; and <br />WHEREAS, the Customer desires to engage the services of Redflex to provide certain <br />equipment, processes and back office services so that sworn peace officers of the <br />Customer are able to monitor, identify and enforce red light running violations; and <br />WHEREAS, it is a mutual objective of both Redflex and the Customer to reduce the <br />incidence of vehicle collisions at the traffic intersections and city streets that will be <br />monitored pursuant to the terms of this Agreement. <br />NOW THEREFORE, in consideration of the mutual covenants contained herein, and for <br />other valuable consideration received, the receipt and sufficiency of which are hereby <br />acknowledged, the parties agree as follows: <br />AGREEMENT <br />1. DEFINITIONS. In this Agreement, the words and phrases below shall have the <br />following meanings: <br />1.1. "Authorized Officer" means the Police Project Manager or such other <br />individual(s) as the Customer shall designate to review Potential Violations and <br />to authorize the Issuance of Citations in respect thereto, and in any event, a <br />sworn peace officer or a qualified employee of the Police Department. <br />L2. "Authorized Violation" means each Potential Violation in the Violation Data for <br />which authorization to issue a citation in the form of an Electronic Signature is <br />given by the Authorized Officer by using the Redflex System. <br />1.3. "Citation" means the notice of a Violation, which is mailed or otherwise <br />delivered by Redflex to the violator on the appropriate Enforcement <br />Documentation in respect of each Authorized Violation. <br />1.4. "Confidential or Private Information" means, with respect to any Person, any <br />information, matter or thing of a secret, confidential or private nature, whether or <br />not so labeled, which is connected with such Person's business or methods of <br />operation or concerning any of such Person's suppliers, licensors, licensees, <br />customers or others with whom such Person has a business relationship, and <br />which has current or potential value to such Person or the unauthorized <br />