04-02-2018 Council Work Session Packet

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State of Minnesota -U.S. Bank Commercial Card Solutions -Participating Addendum Contract 1175413 Purchasing Card Contract 1175427 Fleet Card Appendix A, Document 5 -Applicable Card Fee and Rebate Information MINIMUM REQUIREMENTS If Any Entity does not earn at least $75.00 in Incentive Share for Category 1 Incentive Share Components 1 through 3 and Category 2 Incentive Share Components 1 through 2 will forfeit Incentive share for the preceding quarter. Any Incentive Share payment made pursuant to the Contract will be net of accumulated Charge-offs resulting from participation in Contractor programs regardless of whether the underlying Contract between the parties is valid or has been terminated. In the event that the Card Program or the Contract is terminated prior to the completion of the Base Period or prior to the completion of any Agreement Quarter after the completion of the Base Period by Entity without cause, or by Contractor with cause, and/or the sole provider provision of this Contract is violated, in addition to any other remedies available to Contractor, this Incentive Share opportunity shall immediately terminate and no Incentive Share shall be paid to Entity. The State of Minnesota, Materials Management will receive the annual incentive based on all spend regardless if an entity terminates within the Base Period. Any Charge-offs in excess of the net Incentive Share from one (1) Agreement Quarter will be subtracted from one (1) or more of the following Agreement Quarters. Upon termination of the Contract, if the net Incentive Share is a negative dollar amount due to Charge-offs, Contractor may request, and Entity agrees to reimburse, Contractor up to the dollar amount previously paid by Contractor to Entity within thirty (30) days of the termination of the Contract. Incentive Rebates Apptlcabte to Fleet Card Rebate BPS Paid Share 1 Participating Entity Volume: Entity will receive a basis point 130 Quarterly via (percentage) of their quarterly sales volume, credits to managing The Formula to determine quarterly volume incentive share: accounts Q11arter{e_sa!es volume eer enti{X w g11ali6!_in;:. lar;:.e ticket volillne X basis (2.0lnts (vercentag_e2 = EntiQ!. Quarterly_ Volume Incentivf 2 Participating Entity Prompt payment: A prompt payment Incentive will Quarterly via be offered and is designed to provide an incentive to each entity when 45 credits to managing Client Held Days Is less than 45 days. Client held days cannot be less (1 bp/day) accounts than zero {0) The Prompt Payment Incentive is based solely on the Client Held Days Payment Performance for each Entity for each Agreement Quarter {3 calendar months).The Formula to determine Prompt Payment Incentive: (45 -Client Held Days)/ 45 x 0.0045 x Quarterly Sales Volume 3 All WSCA-NASPO States Annual Volume Incentive (per Slate) Annually via $50,000,000-$100,000,000 40 electronic payment $100,000,001 -$300,000,000 41 to the Slate of $300,000,001 -$500,000,000 43 Minnesota, $500,000,001 -$1,000,000,000 45 Materials Management Division MINIMUM REQUIREMENTS Any Entity does not earn at least $75.00 in Incentive Share for Category 1 Incentive Share Components 1 through 3 and Category 2 Incentive Share Components 1 through 2 will forfeit Incentive share for the preceding quarter. Any Incentive Share payment made pursuant to the Contract will be net of accumulated Charge-offs resulting from participation in Contractor programs regardless of whether the underlying Contract between the parties is valid or has been terminated. In the event that the Card Program or the Contract is terminated prior to the completion of the Base Period or prior to the completion of any Agreement Quarter after the completion of the Base Period by Entity without cause, or by Contractor with cause, and/or the sole provider provision of this Contract is violated, In addition to any other remedies available to Contractor, this Incentive Share opportunity shall immediately terminate and no Incentive Share shall be paid to Entity. The State of Minnesota, Materials Management will receive the annual incentive based on all spend regardless if an entity terminates within the Base Period. Any Charge-offs in excess of the net Incentive Share from one (1) Agreement Quarter will be subtracted from one (1) or more of the following Agreement Quarters. Upon termination of the Contract, if the net Incentive Share is a negative dollar amount due to Charge-offs, Contractor may request, and Entity agrees lo reimburse, Contractor up to the dollar amount previously paid by Contractor to Entity within thirty (30) days of the termination of the Contract. Page 29 of 37