Mail Contractor Agreement MAILCONTRACTOR AGREEMENT MAIL SERVICE NUMBER: MAIL SERVICE NAME: ABN 28 864 970 579 THIS MAIL CONTRACTOR AGREEMENT is made up in various parts as defined in Clause 1 of this Agreement. Contractor’s Declaration – please read before signing this Mail Contractor Agreement By signing this Mail Contractor Agreement (“Agreement”), the Contractor acknowledges that: It has read and understood the Agreement. The Agreement does not confer upon it any right to sell the Agreement or sell a sub-contract of the Agreement. When preparing its Tender submission and calculating the Contract Fee it has considered and made allowance for all expenses relating to the performance of the Services and the requirements of the Agreement, including appropriate payment of Personnel with respect to any relevant legislation It is required to develop and implement a WHS Management Plan that demonstrates compliance with its work health and safety duties under applicable legislation and satisfies Australia Post’s safety standards. Australia Post has advised the Contractor to seek its own independent legal and financial advice in preparing its Tender and entering into this Agreement. Executed by the parties as an Agreement on Date (Execution date) in the State of State. (Contractor to sign here if the contractor is a company): Company name ACN 123 456 789 (“Contractor”) Executed in accordance with section 127 of the Corporations Act 2001 (Cth): …………………………………………………………………. Signature of director ……………………………………………………………… Signature of director/company secretary (Delete as applicable) …………………………………………………………………. Name of director (print) ……………………………………………………………… Name of director/ company secretary (print) (Contractor to sign here if the contractor is NOT a company): Contractor name ABN 12 345 678 910 (“Contractor”) In the presence of: Executed by: …………………………………………………………………. Signature of contractor ……………………………………………………………… Signature of witness ……………………………………………………………… Name of witness (print) AUSTRALIAN POSTAL CORPORATION ABN 28 864 970 579 (“Australia Post”) Executed by: In the presence of: …………………………………………………………………. Signature of Australia Post delegate ……………………………………………………………… Signature of witness …………………………………………………………………. Name of Australia Post delegate (print) …………………………………………………………… Name of witness (print) Page | i Mail Contractor Agreement REFERENCE TABLE Item 1: Trust: Item 2: Contractor Name: ACN: Contractor Address: Item 3: Contractor Representative: Address: Not Applicable or The Contractor enters into this Agreement as trustee of the following trust: Trust Name: Trust ABN: Telephone (work): Telephone (home): Mobile: Fax: Email: Item 4: Nature of Services: Item 5: Delivery Area: Item 6: Contract Fee: Parcel Delivery Roadside Mail Delivery Street Mail Delivery Street Post Box Clearance Depot Bag Delivery Transport (Interstate/Intrastate) Miscellaneous Services For a per annum rate contract, the Contract Fee is: The Contract Fee will be paid monthly in 12 equal instalments. Each instalment will be paid no later than the last day of the month to which the payment relates, however Australia Post may elect to pay the monthly Contract Fee at an earlier date. For a per unit rate contract, the Contract Fee is: Ordinary/Express Post: $ per Recorded Article Signature Items: $ per Recorded Article Call for Returns: $ per Recorded Article eParcel Consignments: $ per Recorded Article eParcel Additional Parcels: $ per Recorded Article <insert unit rate category> $ per <insert unit rate category> $ per <insert unit rate category> $ per <insert unit rate category> $ per <insert unit rate category> $ per The Contract Fee will be paid monthly for the agreed recorded quantity of each unit rate category for period to which the payment relates. The payment will be made in arrears within seven (7) days of the end of the period to which the payment relates, however Australia Post may elect to pay the monthly Contract Fee at an earlier date. Page | ii Mail Contractor Agreement REFERENCE TABLE For contracts other than per annum or per unit contracts, the Contract Fee is calculated on the following basis: The Contract Fee will be paid monthly in arrears within seven (7) days of the end of the period to which the payment relates, however Australia Post may elect to pay the monthly Contract Fee at an earlier date. Item 7: Commencement date: Item 8: Initial Term: years Item 9: Further Period: years Item 10: Maximum Number of Further Periods: Item 11: Australia Post Manager: Operations Address: Item 12: Security: Item 13: Equipment: (eg, scanners, sorting equipment, keys) Item 14: Equipment Rental Fee: $ per month per Scanner (inclusive of GST) $ per month per Sorting Frame (inclusive of GST) Item 15: Marine Cargo Insurance: $ per load Item 16: General Property Insurance: $ per item/unit Scanner $ per item/unit Sorting Frame Page | iii A guarantee and indemnity in a form approved by Australia Post from each of the Contractor’s directors. Mail Contractor Agreement REFERENCE TABLE Item 17: Tools of Trade: (e.g. Motor vehicle/s, mobile telephone, CB radio, satellite phones, pallet jacks etc. Specify any item the contractor brings to the contract that has been costed in part E of the tender document. Refer to below table as an example) Type of tool e.g Station Wagon e.g. Mobile phone e.g. Truck Make Model Colour Registration (if applicable) Holden 2008 White CMD001 Nokia Isuzu 3000 2009 N/A White N/A CMD002 (Specify tools of trade in the below table. Attach sheet/s for additional information): Type of tool Make Model Colour Registration (if applicable) (or as otherwise approved in writing by Australia Post) [The rest of this page is left intentionally blank; next page is “General Conditions of Contract” page 1 Page | iv Mail Contractor Agreement GENERAL CONDITIONS OF CONTRACT Table of Contents Page 1 Definitions and interpretation ..................................................................................................................1 2 Services ...........................................................................................................................................................4 3 Term of Agreement......................................................................................................................................4 4 Status of Contractor ...................................................................................................................................5 5 Contractor a Trustee...................................................................................................................................5 6 Payment of Contract Fee ..........................................................................................................................6 7 Records Information and Reporting .......................................................................................................6 8 Contact Fee Adjustment – Australia Post Initiatives.........................................................................6 9 Variations .......................................................................................................................................................6 10 Contract Fee Adjustment – Input Costs ................................................................................................7 11 Contractor's Warranties.............................................................................................................................9 12 Assignment ....................................................................................................................................................9 13 Subcontracting .............................................................................................................................................9 14 Security ........................................................................................................................................................ 10 15 Intellectual Property................................................................................................................................. 10 16 Goodwill ........................................................................................................................................................ 10 17 Personnel ..................................................................................................................................................... 10 18 No Rights Over Articles ............................................................................................................................ 11 19 Supply of Contract Materials by Australia Post .............................................................................. 12 20 Equipment and Tools of Trade .............................................................................................................. 12 21 Security Checks ......................................................................................................................................... 12 22 Australia Post Reputation ...................................................................................................................... 13 23 Contractor’s Insurances .......................................................................................................................... 13 24 Contractor’s Liability and Indemnities ................................................................................................ 14 25 Audit and Searches .................................................................................................................................. 15 26 Co-operation With Other Contractors ................................................................................................. 16 27 Confidential Information ......................................................................................................................... 16 28 Work Health and Safety and Environment Management ............................................................ 17 29 Cooperation on Transition ...................................................................................................................... 18 30 Termination ................................................................................................................................................. 18 31 Dispute Resolution .................................................................................................................................... 19 32 Force Majeure ............................................................................................................................................ 20 Mail Contractor Agreement 33 Goods and Services Tax (“GST”)............................................................................................................ 21 33A Australian Business Number “ABN” ..................................................................................................... 22 34 Conflict of Interest..................................................................................................................................... 22 35 Restraint ...................................................................................................................................................... 23 36 Australia Post Identification .................................................................................................................. 23 37 Privacy of Personal Information ........................................................................................................... 24 38 Set Offs ......................................................................................................................................................... 24 39 Costs and Expenses ................................................................................................................................. 25 40 Severance .................................................................................................................................................... 25 41 Time of the Essence ................................................................................................................................. 25 42 Entire Agreement ...................................................................................................................................... 25 43 Variation and Waiver ............................................................................................................................... 25 44 Survival of Obligations ............................................................................................................................. 25 45 Notices.......................................................................................................................................................... 25 46 Governing Law ........................................................................................................................................... 25 47 No Merger .................................................................................................................................................... 26 48 Access to Documents............................................................................................................................... 26 49 Schedule of General Specifications ............................................................................................. 27 Mail Contractor Agreement 1 Definitions and interpretation 1.1 Definitions matter or thing arising from it, but excludes material or information which: In this Agreement, unless the context otherwise indicates or requires: Act means the Australian Postal Corporation Act 1989 (Commonwealth). Agreement means this Mail Contractor Agreement comprising these General Conditions of Contract and the annexed Face Page, Reference Table and Schedule and any attachments, together with the General Information for Tenderers, Mail Service Specifications and the Tender Form contained in the tender documentation provided to the Contractor by Australia Post prior to entry into this Agreement. APT&C means the Australia Post Terms and Conditions relating to services supplied to a Person by Australia Post as from time to time determined under section 32 of the Act and published on the Australia Post website: auspost.com.au. Article means every article within the meaning in the Act intended to be carried by the Contractor under this Agreement. Australia Post Initiative means an initiative of Australia Post to increase the market or market share for Services, or any part thereof, and/or to improve efficiencies and/or to reduce costs in the performance of Services, whether by the introduction of new technology or otherwise. Australia Post Manager means the Person identified in Item 11 of the Reference Table or such other Person notified by Australia Post to the Contractor, being the Person who has authority to act on behalf of Australia Post in respect of this Agreement. Australia Post Privacy Policy means the policy and procedures from time to time adopted by Australia Post relating to personal information of Persons contracting with it and published as “Privacy Statement” on the Australia Post website: auspost.com.au. Australia Post Equipment. Property includes Articles and Authority means any Federal, State, or local Government, semi-Government, quasi-Government or other body or authority, statutory or otherwise, including any court or tribunal. Business Day means any day not being a Saturday, Sunday or public holiday in the State in which the majority of the Services are to be performed. Commencement Date means the date specified in Item 7 of the Reference Table. Confidential Information means those Contract Materials which are marked as, otherwise identified, known or which ought reasonably to be known to be confidential and includes Confidential Postal Information and Documents, Customer Lists, trade secrets and know-how and this Agreement and any Page | 1 (a) is at the time of disclosure, or subsequently becomes, material or information in the public domain otherwise than by a breach by the Contractor of this Agreement; or (b) is or was rightfully acquired without any obligations of confidence by the Contractor from a source other than Australia Post and without a breach of confidence by any source of the information, prior to the receipt of the information by the Contractor. Confidential Postal Information and Documents means any information or documents falling within section 90G(1) of the Act and includes Personal Information, address lists, names of addressees and round or route information whether or not created by the Contractor. Contract Fee means the fees set out in Item 6 of the Reference Table payable to the Contractor in consideration of performance of the Services. Contract Materials means all Data, whether comprising Confidential Information or not, produced by or provided to the Contractor or its Personnel pursuant to this Agreement or forming part of the tender documentation provided to the Contractor by Australia Post prior to entry into this Agreement. Contractor means the Person so named in this Agreement (who represents it is located at the address described in Item 2 of the Reference Table) and includes, where the context permits, its Personnel. Contractor’s Representative means the natural Person specified in Item 3 of the Reference Table or such other natural Person nominated in writing by the Contractor to Australia Post, provided that natural Person is one of the Contractor’s Personnel. Corporation means any company, corporation or other body corporate constituted under the Corporations Act 2001 (Commonwealth). Customer means any addressee or other intended recipient of an Article or any Person who provides Australia Post with one or more Articles for carriage. Customer List means any list of Customers. Data means all information recorded in any media, and includes accounting records and Customer Lists. Delivery Area means the area specified in Item 5 of the Reference Table and includes the area indicated on any map annexed and such adjacent areas in which Australia Post may from time to time request Articles be delivered whether to accord with any responsibility for delivery from the office or other place from which the Contractor collects Articles for delivery or otherwise. Delivery Point means each location where Articles are to be delivered pursuant to this Agreement. AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement Dispute means a dispute in connection with or arising in any way out of this Agreement. (b) is otherwise unable to pay its debts as and when they become due and payable; Employee Benefits means remuneration, annual leave, sick leave, long service leave, redundancy payments, extra payments for overtime or public holidays and any other similar benefits, payable to, or in respect, of the Contractor and its Personnel. (c) being a natural Person, commits or suffers an act of bankruptcy; or Employer Obligations means accident or workers' compensation payments and premiums, payroll tax, pay as you go tax and related income tax deductions, superannuation contributions or other similar payments or contributions payable to or in respect of, the Contractor and its Personnel. Intellectual Property includes all proprietary rights (registered or unregistered) including any intellectual or industrial property rights, whether now existing or coming into existence in the future, related in any way to this Agreement, including but not limited to inventions, patents, business processes, software programs, copyright, trademarks, registered designs and Confidential Information and Contract Materials. Equipment means the equipment specified in Item 13 of the Reference Table and such other equipment as may be supplied (whether for fee or not) by Australia Post under this Agreement. Face Page means the first (cover) page of the document constituting this Agreement. Force Majeure has the meaning set out in clause 32. Further Period means the period (if any) referred to in Item 9 of the Reference Table. Goodwill means all rights title and interest attached to the delivery of Articles and/or the Services and includes the relationship with Customers and any Customer Lists. GST and “GST Law” have the same meaning as in A New Tax System (Goods and Services Tax) Act 1999 (Commonwealth). Improvement Notice means a written notice setting out the nature of breach of the Agreement including relevant clauses breached, the steps required to remedy the breach and the period within which to remedy the breach. Initial Term means the period described in Item 8 of the Reference Table. Insolvency Event means, in relation to a Person, when the Person: (a) is: (i) insolvent for the purposes of Section 95A of the Corporations Act 2001 (Commonwealth); or (ii) the subject of an event described in Sections 459C(2) (a) to (f) or Section 585 of the Corporations Act 2001 (Commonwealth) (or it makes a statement from which another party to this agreement may reasonably deduce it is so subject); or (iii) an insolvent under administration or suffers the appointment of a controller, administrator, liquidator or provisional (iv) liquidator as those terms are defined in Section 9 of the Corporations Act 2001 (Commonwealth); or (v) dissolved or deregistered; Page | 2 (d) takes or suffers a similar consequence in debt to those in paragraphs (a) to (c) under the law of any jurisdiction. KPIs means Key Performance Indicators specified in clause S1 of the Schedule, being one of the means (among others) of assessing the Contractor’s compliance with the Performance Requirements. WH&S Management Plan means the Work Health and Safety management procedures and methods to be implemented in accordance with a predetermined plan and regularly self-audited by the Contractor in performing the Services to ensure such performance complies with all Relevant Law, Relevant Standards and the requirements of all Authorities and Australia Post. Operations Address means the address specified in Item 11 of the Reference Table. Our Ethics means the policy and procedures from time to time adopted and published by Australia Post relating to the conduct of its staff and contractors or, if none are published at any time, Our Ethics booklet from time to time published on the Australia Post website: auspost.com.au. Parcel Delivery means delivery of Articles, other than letter mail, carried by and delivered to Delivery Points by the Contractor under this Agreement. Payment Period means for a) an annual rate service a calendar month, and b) a unit rate service a period which Australia Post will advise the Contractor from time to time, typically consisting of four to five weeks which may contain parts of two consecutive calendar months. Performance Requirements means all of Australia Post’s requirements from time to time in respect of performance of the Services, comprising the minimum performance standards required to be achieved under this Agreement including the Specifications, as varied or added to from time to time whether in the form of directions, lists, or otherwise. Person means a legal person and includes a trust, a body politic or corporate as well as an individual. Personal Information has the same meaning as in Section 6 of the Privacy Act 1988 (Commonwealth). AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement Personnel means every natural Person (whether Contractor, Subcontractor, or working director, employee or agent of either) who performs or intends to perform the Services and includes where the context permits any Contractor or Subcontractor which is a Corporation. Privacy Act means the Privacy Act 1988 (Cth). Privacy Laws means all relevant Commonwealth, State and Territory legislation, principles, industry codes and policies relating to the collection, use, disclosure, storage or granting of access rights to the Personal Information including, but not limited to: (i) the Privacy Act (including the Information Privacy Principles and the National Privacy Principles); (ii) the Australian Direct Marketing Association Code of Practice ; (iii) Part 7B of the Australian Postal Corporation Act 1989 (Cth); (iv) The Spam Act 2003 (Cth) Reference Table, means the table set out on page (ii) of this Agreement. Relevant Law means any statute, rule, regulation, proclamation, ordinance or by-law, whether Federal, State, local or otherwise and includes any award, certified agreement or industrial instrument given legal effect under Federal or State legislation. Supplier Code of Conduct means the statement as set out in S.13 of the Schedule of General Specifications comprising part of this Agreement. Subcontractor means any Person, not being an employee, engaged by the Contractor for the purpose of providing or assisting in the performance of any part of the Contractor’s obligations under this Agreement. Tender means all information supplied to Australia Post by the Contractor prior to the Commencement Date in respect of and in contemplation of entry into this Agreement and performance of the Services. Term means the period of currency of this Agreement and includes (unless the Agreement is terminated earlier) the Initial Term and any Further Period. Tools of Trade means all materials, parts, labour, Vehicles or other means of transport, tools, instruments and other equipment necessary and suitable for the performance of the Services including but not limited to those items set out in Item 17 of the Reference Table and clause S5 of the Schedule. Vehicle means any vehicle or other conveyance used or proposed to be used by the Contractor in the performance of Services. 1.2 Interpretation (a) Unless the context otherwise requires, a word which denotes: (i) Relevant Standards means any international or Australian standards applicable or relevant to the Services, including but not limited to any such standards notified from time to time by Australia Post to the Contractor. Schedule means the Schedule of General Specifications comprising part of this Agreement. Security means any guarantee and/or indemnity, bond or other surety granted to or required by Australia Post to be granted to it, by or on behalf of the Contractor as security for performance of the Contractor’s obligations under this Agreement. (ii) any gender includes the other genders; and (iii) a person includes an individual, a body corporate and the Crown in whatever capacity. (b) Unless the context otherwise requires, a reference to: Services means delivery (including collection) within the Delivery Area by the Contractor of Articles of the general nature set out in Item 4 of the Reference Table pursuant to the APT&C and this Agreement excluding (for the removal of doubt) invoicing any Customer, which Australia Post will do. Specifications means the service specifications referable to the Services contained in the Schedule and the Mail Service Specifications of the tender documentation provided to the Contractor by Australia Post prior to entry into this Agreement, or as added to or otherwise varied from time to time whether in the form of directions, timetables, lists or otherwise. Page | 3 the singular includes the plural and vice versa; AUSTRALIA POST (i) any legislation includes any regulation or instrument made under it and where amended re-enacted or replaced means that amended re-enacted or replacement legislation; (ii) any other agreement or instrument where amended or replaced means that agreement or instrument as amended or replaced; (iii) a clause, schedule or annexure is a reference to clause of , annexure to, or schedule to this Agreement; (iv) any thing is a reference to the whole or any part of it and a reference to a group of persons is a reference to any one or more of them; (v) any word or phrase that is given a defined meaning in the Act or the APT&C shall, for purposes of this Agreement, be SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement a reference to the word or phrase so defined; (vi) a day is to be interpreted as the period of time commencing at midnight and ending 24 hours later; (vii) a month is to be interpreted as a calendar month; and amount of Services available for performance from day to day under this Agreement. 2.5 Australia Post reserves the right to engage other contractors to perform the Services as and when, in Australia Post’s discretion, required. 2.6 In performing Services the Contractor must: (viii) time is to local time in the capital city of the State where the majority of the Services are to be performed. (a) perform all of its obligations under this Agreement in a sound and commercially reasonable manner with appropriate professional skill, care and diligence, and honesty; (c) Where any word or phrase is given a defined meaning, any other part of speech or other grammatical form in respect of that word or phrase has a corresponding meaning. (b) do all lawful and co-operative acts necessary on its part to bring about the contractual result and to comply with: (d) Unless the context otherwise requires, if a period of time is specified and dates from a given day or the day of an act or event, it is to be calculated exclusive of that day. (i) (iii) the requirements of all Authorities; and (iv) Our Ethics; and (e) Use of the word including and similar expressions are not, nor are they intended to be words of limitation. 1.3 (c) procure each of its servants, agents, consultants, Subcontractors and suppliers to sign execute and deliver all such documents, instruments and writings and procure to be done all such acts, matters and things including the provision of relevant information in a timely manner as may be necessary or desirable to give full effect to this Agreement. Successors and assignees A Person includes the trustee, executor, administrator, and successor in title and permitted assignee of that Person. 1.4 Headings, notes and table of contents Headings, marginal notes, footnotes and the table of contents are included for ease of reference. None of the provisions of this Agreement shall be construed or interpreted by reference to such headings, marginal notes, footnotes or table of contents. 2 Services 2.1 The Contractor must, in accordance with the terms of this Agreement, provide the Services to Australia Post strictly in accordance in all respects with the Performance Requirements. 2.2 In consideration of and subject to the Contractor performing its obligations under this Agreement, Australia Post shall pay the Contractor the Contract Fee, adjusted by any additions or deductions, in accordance with the terms of this Agreement. 2.3 The Contractor acknowledges and accepts that Australia Post cannot and does not guarantee any particular demand for or use of the Services, nor any particular level of Contract Fee from the provision of the Services. The Contractor further acknowledges and accepts that the minimum number of hours that Australia Post may allocate is zero (0). 2.4 Australia Post will use reasonable endeavours to provide to the Contractor opportunities to perform Services, but will not be liable for any failure to do so, or for any variations in the Page | 4 Relevant Laws; (ii) Relevant Standards; 2.7 Where under any Relevant Law (including, any law concerning registrations, payments, taxes, activities, or arrangements in respect of workers compensation, payroll tax, or work health and safety): (a) the Contractor has an obligation to take action, effect registration, provide information or statements, make payments, withhold monies, or the like; and (b) Australia Post has, or may have, an independent, concurrent or consequential liability to take action, effect registration, provide information or statements, make payments, withhold monies, or the like, in the event that the Contractor omits to fully comply with the Contractor’s obligations as prescribed by such Relevant Law, the Contractor will fully comply with the Contractor’s obligations as prescribed by the Relevant Law and provide to Australia Post upon request such evidence of the Contractor’s compliance with any such Relevant Law. 3 Term of Agreement 3.1 The Contractor must commence performing the Services on the Commencement Date and continuing performing the Services for the Term, unless this Agreement is terminated prior to the expiry of the Term. AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement 3.2 If Australia Post is willing to engage the Contractor for a Further Period it will give notice to the Contractor accordingly not less than ninety (90) days before expiry of the Initial Term. 3.3 If the Contractor receives a notice under clause 3.2, it must accept the offer for the Further Period within fifteen (15) Business Days of receipt, otherwise such offer will lapse. If the offer is accepted, the Term will be extended accordingly and the engagement of the Contractor for the Further Period will, unless otherwise agreed in writing by the parties, be on the same terms and conditions as contained in this Agreement. 3.4 Australia Post may similarly offer to engage the Contractor for additional consecutive Further Periods, up to the maximum number of Further Periods set out in Item 10 of the Reference Table. Engagement of the Contractor for additional Further Periods will, unless otherwise agreed in writing by the parties, be on the same terms and conditions as contained in this Agreement. 4 Status of Contractor 4.1 The Contractor is an independent contractor and must not for any purpose in connection with the provision of Services or otherwise represent or hold itself out to be, acting as, or deemed to be an employee or agent of Australia Post. Nothing in this Agreement either express or implied will give rise to the relationship of employer and employee, principal and agent, or partnership between Australia Post and the Contractor. 4.2 Australia Post is required by law to deduct (including any deduction under clause 33); (f) Australia Post is not liable for any other payment over and above the Contract Fee; and (g) where any government directive or legislative amendment affects the conditions of this Agreement so as to impose on Australia Post the obligation for payment of any Employer Obligation or Employee Benefit, the Contractor must assume liability for the payment, and indemnifies and must keep indemnified Australia Post in respect of any such payment which Australia Post is required to make. 5 5.1 (a) the Contractor and its Personnel are not employees or agents of Australia Post and have no authority to act as agent of or in any way bind or commit Australia Post to any obligation of any kind; Warranty if Contractor not a trustee If the Contractor is not described in Item 1 of the Reference Table as trustee of a trust, the Contractor warrants that it enters into this Agreement in its own right and not as a trustee for any Person. 5.2 As an independent contractor, the Contractor acknowledges and accepts that: Contractor a Trustee Application of clause if Contractor is a trustee Clauses 5.3 and 5.4 apply if the Contractor enters into this Agreement as trustee of any trust (Trust) regardless of whether or not that Trust is described in Item 1 of the Reference Table. 5.3 Warranties as to Trusts Where the Contractor is a trustee, the Contractor is bound both personally and in its capacity as a trustee and the Contractor warrants to Australia Post that it: (a) is the sole trustee of the Trust and will not during the Term resign that office or appoint a new or additional trustee of the Trust nor cause the Trust to vest; (b) its Personnel are employees, Subcontractors or agents of the Contractor for taxation and other purposes; (b) has entered into this Agreement for the purposes and benefit of the Trust and has obtained the consent or approval of any Person which is needed to ensure that the property of the Trust is bound upon the execution of this Agreement; (c) Australia Post is not responsible for payments of Employer Obligations or Employee Benefits and the Contractor indemnifies and must keep indemnified Australia Post against any payments by Australia Post of Employer Obligations or Employee Benefits; (c) has power under the relevant Trust deed to enter into this Agreement, to undertake the obligations and liabilities in the manner and the extent contemplated by this Agreement and to apply the assets of the Trust in satisfaction of any money payable under this Agreement; and (d) the Contractor is responsible for payments of Employer Obligations and Employee Benefits; (d) has an unrestricted right to be fully indemnified out of the assets of the Trust; and (e) the Contractor is responsible for any tax payments in respect of the Contract Fee except for any tax payments which (e) will not cause or suffer the Trust deed to be varied in any respect (without the prior written consent of Australia Post). Page | 5 AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement 5.4 Australia Post’s reliance on Trust warranties The Contractor acknowledges and agrees that this Agreement is entered into on the basis that each of the warranties contained in clause 5.3 is and will remain true and correct throughout the Term. 6 Payment of Contract Fee 6.1 In consideration of performance of the Services Australia Post will pay the Contractor the Contract Fee. The Contract Fee (which the Contractor acknowledges forms part of Confidential Information) will be calculated and payable in the manner set out in Item 6 of the Reference Table. 6.2 The Contractor must, if requested (and, if so, as a condition precedent to payment), provide to Australia Post all information necessary and all documents reasonably required by Australia Post to enable Australia Post to periodically determine the Contract Fee. 6.3 The Contractor agrees to accept payment by electronic funds transfer to an Australian bank account or financial institution, which the Contractor must nominate as a pre-condition to payment. 6.4 Payment to the Contractor will be deemed to be made once the deposit is received by the Contractor’s nominated bank or financial institution. 7 Records Information and Reporting 7.1 The Contractor must, at its own cost, record and keep in accordance with good accounting principles and practice applied in Australia and provide to Australia Post (by upload and/or download or otherwise) such Data in such media (including upon any relevant item of Equipment) in relation to the provision of the Services as from time to time required by Australia Post so as to enable Australia Post to ascertain: (a) the Contractor’s compliance Performance Requirements; with the (b) the nature and quantity of Articles delivered in performance of the Services; (c) the Contractor’s cost savings as a result of Australia Post Initiatives; and (d) any other act matter or thing reasonably requested by Australia Post. 7.2 The Contractor must also at its own cost: (a) as often as Australia Post may require, produce to Australia Post: (i) for inspection, any relevant item of Equipment intended for recording Data; and (ii) for inspection or audit in accordance with clause 25, copies of any or all of Page | 6 such Data in required; and whatever medium (b) retain all Data for a period of at least seven (7) years from the date of its respective creation. 8 Contact Fee Adjustment – Australia Post Initiatives 8.1 The Contractor must take all steps and provide all information required to assist with and facilitate all Australia Post Initiatives. 8.2 If Australia Post has made or intends or proposes to make an Australia Post Initiative, then Australia Post may by notice in writing to the Contractor at any time require a review of the Contract Fee to take into account any changes to the Contractor’s cost structure, whether cost increases or savings, that have been or might reasonably be expected to be achieved in the provision of Services as a result of that Australia Post Initiative. 8.3 Within ten (10) Business Days of the Contractor receiving a notice under clause 8.2, the parties must meet to review the impact of the Australia Post Initiative and negotiate in good faith with a view to agreeing a variation in the Contract Fee (including any adjustment that should be made as a result of payments already made, taking into account the date of impact of the Australia Post Initiative and/or the impact over time). 9 Variations 9.1 Australia Post may at any time by notice to the Contractor vary the Services (including the Delivery Area), whether permanent or in any particular case, and/or the Performance Requirements. To avoid doubt, where warranted in the Australia Post Manager’s opinion, such notice may be immediate and may be a verbal notice providing it is subsequently confirmed in writing. If such variation amounts to a material variation of the Services and/or the Performance Requirements, the Contract Fee will be adjusted by the parties negotiating in good faith to reflect any additional direct costs reasonably incurred by the Contractor and/or any cost savings which the Contractor achieves or in the reasonable opinion of Australia Post should achieve as a result of the variation, together with a reasonable allowance for profit and overheads. In determining whether a variation in the Delivery Area (whether permanent or temporary) gives rise to an additional direct cost, the cost which the Contractor would have incurred if an Article had been delivered to the boundary of the Delivery Area (nearest the Delivery Point outside the Delivery Area), must be deducted from the actual cost. AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement 9.2 For the purposes of clause 9.1, the Contractor must, if so requested in writing by Australia Post, provide within ten (10) Business Days: (a) a written estimate of the financial impact of a proposed variation, including the supporting calculations; and (b) a tax invoice in a form reasonably required by Australia Post detailing the additional costs incurred by the Contractor. Australia Post may withhold any adjustment in the Contract Fee until such time as the Contractor complies with its obligations under this clause 9.2. 9.3 If the number of Delivery Points increases beyond those in the Delivery Area as at the Commencement Date (or as varied by agreement of the Parties) by: (a) More than 20 in respect of Street Mail Delivery; or (b) More than 10 in respect of Roadside Mail Delivery, (as both of those types of Services are designated by Australia Post) then the Contractor will be entitled to an additional payment for any variations in time and route distance travelled calculated by reference to the Contractor’s operating costs as specified in the Contractor’s tender submission. Australia Post and the Contractor will negotiate an amount for this additional work. For the avoidance of doubt a Contractor is not entitled to further additional payments under this clause 9.3 until a further increase of 20 or more Delivery Points in respect of Street Mail Delivery or 10 or more Delivery Points in respect of Roadside Mail Delivery has occurred. 10 “Fuel Index” means the monthly average wholesale cost of fuel published by an independent fuel monitor of Australia Post’s choice, applicable to the capital city of the State in which the majority of Services are being performed. “LPI” means the Labour Price Index, Catalogue Number 6345.0 published by the Australian Bureau of Statistics for the Transport, Postal and Warehousing (as updated from time to time) applicable to the State in which the majority of Services are being performed. “Periodic Review Period” means: (a) the period between the date of submission of the current Review Notice for a Periodic Review and the date of submission of the last Review Notice for a Periodic Review or, (b) in the event that the Periodic Review is taking place for the first time, the period between the date of submission of the current Review Notice for a Periodic Review and the date that tenders for the Agreement closed. 10.2 Either Australia Post or the Contractor (subject to clause 10.3) may by notice in writing (“Review Notice”) to the other apply for a review of the Contract Fee, to take account of changes to the cost base of certain input costs of providing the Services, on the conditions set out in this clause 10. 10.3 To be eligible to apply for a review of the Contract Fee under this clause 10 the Contractor must: (a) have itemised an allowance for labour costs, fuel costs and motor Vehicle operating costs in the Contractor’s tender submission; and (b) not be in breach of this Agreement; and Contract Fee Adjustment – Input Costs (c) remedy any breach of this Agreement which has not been remedied and of which the Contractor has been given notice. 10.1 Definitions: For the purpose of this clause 10, 10.4 ”Annual Review Period“ means: (a) the period between the date of submission of the current Review Notice for an Annual Review and the date of submission of the last Review Notice for an Annual Review or, (b) in the event that the Annual Review is taking place for the first time, the period between the date of submission of the current Review Notice for an Annual Review and the date that tenders for the Agreement closed. “CPI” means the Consumer Price Index, Catalogue Number 6401.0, All Groups Index published on a quarterly basis by the Australian Bureau of Statistics (as updated from time to time) applicable to the capital city of the State in which the majority of Services are performed Page | 7 Either Australia Post or the Contractor may submit a Review Notice to the other, applying for an annual review of the Contract Fee to take into account any variation in labour costs, vehicle operating costs and fuel costs (“Annual Review”), provided that: (a) The first Review Notice for an Annual Review may not be submitted until at least 11 months have elapsed from the Commencement Date. For the sake of clarity, this means that if the Contract commenced on 1 July the first Review Notice for an Annual Review may not be submitted until 1 June in the following year, then pursuant to clause 10.10 any variation would take effect from 1 July; and (b) Any further Review Notice for an Annual Review may not be submitted until at least 12 AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement months have elapsed from the date that the last Review Notice for an Annual Review was submitted. For the sake of clarity, this means that if a Review Notice for an Annual Review was submitted on 1 June the next notice for an Annual Review may not be submitted until 1 June in the following year, then pursuant to clause 10.10 any variation would take effect from 1 July. 10.5 10.6 10.7 10.8 (b) Any further Review Notice may not be submitted until at least 3 months have elapsed from the date that the last Review Notice for a Periodic Review was provided. For the sake of clarity, this means that if a Review Notice for a Periodic Review was submitted on 1 September, the next Review Notice for a Periodic Review may not be submitted until 1 December, then pursuant to clause 10.10 any variation would take effect from 1 January subject to the provisions of clause 10.8.2; and Under an Annual Review, the component of the Contract Fee attributed to labour costs will be adjusted (up or down) if there has been a movement in the LPI over the Annual Review Period and any adjustment will be calculated in accordance with the percentage movement in the LPI over the Annual Review Period. For the sake of clarity, this means that if the LPI has increased by 2% over the Annual Review Period, the component of the Contract Fee attributed to labour costs will increase by 2%. Under an Annual Review, the component of the Contract Fee attributed to vehicle operating costs will be adjusted (up or down) if there has been a movement in the CPI and any adjustment will be calculated in accordance with the percentage movement in the CPI over the Annual Review Period. For the sake of clarity, this means that if the CPI has increased by 2% over the Annual Review Period, the component of the Contract Fee attributed to vehicle operating costs will increase by 2%. Under an Annual Review, the component of the Contract Fee attributed to fuel costs will be adjusted (up or down) if there has been a movement in the Fuel Index over the Annual Review Period, and any adjustment will be calculated in accordance with the percentage movement in the Fuel Index over the Annual Review Period. For the sake of clarity, this means that if the Fuel Index has increased by 2% over the Annual Review Period, the component of the Contract Fee attributed to fuel costs will increase by 2%. (c) Notwithstanding clause 10.8.1(b), a Review Notice for a Periodic Review may not be submitted until at least 3 months have elapsed from the date that the last Review Notice for an Annual Review was submitted. For the sake of clarity, this means that if a Review Notice for an Annual Review was submitted on 1 June, the next Review Notice for a Periodic Review may not be submitted until 1 September, then pursuant to clause 10.10 any variation would take effect from 1 October subject to the provisions of clause 10.8.2. 10.8.2 Under a Periodic Review, the component of the Contract Fee attributed to fuel costs will be adjusted (up or down) if the Fuel Index has increased or decreased by at least seven percent (+/- 7%) over the Periodic Review Period and any adjustment will be calculated in accordance with the percentage movement in the Fuel Index over the Periodic Review Period. 10.9 The Contractor acknowledges that: (a) the data which forms the CPI, LPI and Fuel Index is obtained from independent sources; (b) Annual Reviews and Periodic Reviews may only be carried out once the data becomes available to Australia Post; Periodic Reviews of Fuel Costs 10.8.1 In addition to the Annual Review, either Australia Post or the Contractor may submit a Review Notice to the other applying for an periodic review of the Contract Fee to take into account any variation in fuel costs only (“Periodic Review”), provided that: (a) The first Review Notice for a Periodic Review may not be submitted until at least 2 months have elapsed from the Commencement Date. For the sake of clarity, this means that if the Contract commences on 1 July the first Review Notice for a Periodic Review may not be Page | 8 submitted until 1 September, then pursuant to clause 10.10 any variation would take effect from 1 October subject to the provisions of clause 10.8.2; (c) 10.10 delays in the publication of the data, through no fault of Australia Post, may lead to delays in the Annual Reviews and Periodic Reviews being carried out. Any variation in the Contract Fee as a result of an Annual Review or Periodic Review under this clause 10 will become effective on the first day of the Payment Period following the giving of the relevant Review Notice. AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement 11 Contractor's Warranties 11.1 As an inducement to Australia Post to enter into and remain a party to this Agreement, the Contractor warrants and represents (each as a separate warranty and representation) at each of the execution date of this Agreement and again on every occasion Data is provided by the Contractor to Australia Post during the Term that: (a) it is solvent and able to pay its accounts according to normal trading terms; (b) it has examined and understood all information provided by Australia Post and has made all reasonable inquiries considered necessary of professional advisers and otherwise having regard to the Performance Requirements and all other aspects of this Agreement; conditions of consent prescribed by Australia Post, be subject to the condition precedent in all cases that the Contractor must, at the Contractor’s cost in all things, fully train the intending assignee in performing Services to a standard reasonably approved by Australia Post. 12.4 Any change of control of the Contractor will be deemed to be an assignment of this Agreement, except where the change of control is due to an internal re-organisation of the Contractor and does not amount to an effective change of control. For the purpose of this clause 12, “change of control” means: (a) any transfer of any shares, or any other interest in the Contractor or in any entity that directly or indirectly controls or influences that Contractor; or (c) it has not been induced to enter into this Agreement nor relied on representations, warranties or statements whether oral or written made by Australia Post, its officers, employees or agents except those contained in the information provided to all tenderers upon which the Tender was based; (d) it has been made aware of the need for it to seek independent legal and financial advice concerning the terms and effect of this Agreement and has been given a reasonable opportunity to seek and obtain such advice; and (e) it acknowledges that it has read and understood the Supplier Code of Conduct and warrants that the Contractor and all persons consulting to, contracting to or employed by the Contractor in connection with the performance of the Contractor's obligations under this Agreement shall work to the ethical, social and environmental standards of conduct set out in the Supplier Code of Conduct. 12 Assignment 12.1 The Contractor must not, without the prior consent in writing of Australia Post, sell, assign, mortgage, charge or encumber, or purport to do so, this Agreement or any of the money payable or to become payable under this Agreement. 12.2 Any request by the Contractor for consent to any of the matters listed in clause 12.1 must be made in accordance with the same principles and procedures set out in clauses 13.2 and 13.3 as referable to subcontracting (with the word “Subcontractor” replaced with “assignee”). 12.3 Any consent given under clause 12.2 (applying the same principles and procedures set out in clauses 13.2 and 13.3) will, in addition to any Page | 9 (b) any reconstruction, amalgamation or reorganisation of the Contractor or of any entity that directly or indirectly controls or influences the Contractor, if, in either case, after such a transaction, there would be a change in the person having the power to direct its management and policies, or if no one person has such power, a change in the majority of such persons who, acting together, have such power. 13 Subcontracting 13.1 The Contractor must not subcontract any of its obligations under this Agreement without the prior written consent of Australia Post. Where such consent is provided and the Contractor uses Subcontractors, the Contractor agrees that it will at all times remain responsible for all actions of the subcontractor and the complete and timely performance of all obligations under this Agreement. 13.2 In seeking consent under clause 13.1, the Contractor must provide to Australia Post particulars in writing of the Services to be subcontracted and the name and the address of the proposed Subcontractor together with any other information which Australia Post reasonably requests in relation to the proposed performance of Services by the Subcontractor, including the proposed subcontract documents. 13.3 Within twenty (20) Business Days after submission of a request by the Contractor for consent under clause 13.2, and providing the Contractor has properly complied with clause 13.2, Australia Post will notify the Contractor whether it has consented to the request (and of any conditions of that consent). If no such notice has been given within that period, the request will be deemed to be denied. AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement 13.4 The Contractor agrees that in its dealings with its Subcontractors: extent possible) in Intellectual Property created by the Contractor during the Term which relates to Australia Post or is in any way associated with the provision of the Services immediately upon creation. The Contractor will, and must ensure its Personnel and Subcontractors will do all things necessary (including executing any assignment document) to perfect any such assignment under this clause 15.2. (a) all of its Subcontractors engaged in connection with the Services are engaged as independent contractors to the Contractor; (b) it will not hold itself out, or purport to hold itself out, as being the agent of Australia Post in connection with any subcontract; (c) it has no authority, and will not purport to have any authority, to contract or otherwise deal with any person as agent for, or on behalf of, Australia Post; (d) all of its Subcontractors will enter into legally binding contracts with the Contractor which will impose upon the Subcontractors the obligations which are under this Agreement imposed upon the Contractor, including those obligations contained in clauses 2, 4, 7,11, 13, 15, 17 to 28 inclusive, 34, 36, and 37. 13.5 For the avoidance of doubt, clauses 13.1, 13.2, 13.3 and 13.4 do not in any way limit the ability of the Contractor to engage Personnel to perform the Services (or any part of them) in accordance with this Agreement. 14 Security 14.1 Australia Post may at any time during the Term require the Contractor, on not less than five (5) Business Days written notice, to provide Security for the purpose of ensuring the due and proper performance of this Agreement. 14.2 Without limiting clause 14.1: (a) the Contractor must on or before the Execution Date provide to Australia Post the Security described in Item 12 of the Reference Table; and (b) where the Contractor is: (i) a Corporation, each of its shareholders and directors from time to time; or (ii) a Trust, each of its beneficiaries from time to time (save those specifically excused) will be required to enter into a guarantee and indemnity in the form approved by Australia Post in respect of the Contractor’s obligations pursuant to this Agreement. 15 Intellectual Property 15.4 The Contractor must promptly disclose to Australia Post any invention, discovery or improvement and all programs, systems and concepts made, conceived or created as a direct result of providing the Services. 15.5 The Contractor must not, in the course of performing the Services, breach the Intellectual Property rights of Australia Post or any third party. If any such rights are breached, the Contractor indemnifies and must keep indemnified Australia Post against any loss or damage it may suffer arising out of the breach, and the Contractor must (if so required by Australia Post) assist in and/or assume the defence of any claim or action brought against Australia Post for infringement of any third party rights, including any patents, or for wrongful use of proprietary information. 15.6 The Contractor agrees that it will not make use of or display Australia Post's Intellectual Property including the display of any Australia Post trade mark on any Vehicle, work attire, stationery or documents other than in accordance with this Agreement or any guidelines from time to time published by Australia Post and for the purpose and in the performance of the Services. 16 15.2 The Contractor and its Personnel severally assign all rights (existing and future, to the Goodwill 16.1 The Contractor acknowledges and agrees that Australia Post owns and will be entitled to retain all Goodwill associated with the performance by the Contractor of this Agreement and nothing in this Agreement will be construed as conferring upon the Contractor any right, interest or title in the Goodwill. 17 15.1 All Intellectual Property vested in Australia Post on the Commencement Date remains the sole property of Australia Post and all Intellectual Property created in the performance of the Services vests solely in Australia Post upon creation. Page | 10 15.3 The Contractor must not claim ownership of any Intellectual Property referred to in this clause 15. Personnel 17.1 The Contractor must at all times maintain one of its Personnel nominated as Contractor’s Representative for the purpose of liaison between the Contractor and Australia Post. 17.2 Any direction, notice or other communication desired or required to be given by Australia Post to the Contractor will be sufficiently given if given (orally or, if so required by this AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement Agreement, in writing) to the Contractor’s Representative. (f) take other reasonable steps to address Australia Post’s complaint in relation to the relevant Personnel; 17.3 The Contractor may, subject to compliance with clause 21, employ Personnel to perform the Services and warrants in respect of such Personnel: and the Contractor must in any such event immediately and at the Contractor’s own cost in all things comply with such action or direction by Australia Post, provided always Australia Post may, in its sole discretion and without in any way limiting or waiving any of its rights under this clause 17 or this Agreement generally, agree to review its decision to direct the removal of the Personnel or reinstate that Personnel’s access to any Australia Post computer system or premises where the Contractor has provided evidence satisfactory to Australia Post of remedial action in relation to the security risk, performance of the Services, or causing or contributing to a breach by the Contractor’s Personnel. (a) they are, and will remain, eligible to work in Australia, of an age which is above the minimum required by any Relevant Law, suitably qualified and experienced and possess the level of trustworthiness and professional skill, care and judgement which is necessary in providing or overseeing the provision of the Services and, as far as practicable, the Contractor will use the same Personnel continuously in carrying out the Services; (b) it will at its own cost provide such training for Personnel (including new Personnel) to ensure they perform Services in accordance with Performance Requirements; and (c) that before engaging any Personnel in the performance of Services it will allow sufficient time (which will not be less than ten (10) Business Days) to ensure that: (i) each such Personnel receive sufficient training so that they will be capable of complying with the provisions of this Agreement and in particular, the Specifications set out in the Schedule; and (ii) the Contractor can satisfy requirements of clause 21. In this clause 17.4 “security risk” means a risk to the safety and/or wellbeing of either persons or property or both. 17.5 The Contractor must ensure that those of its Personnel whose duties include driving Vehicles or operating machinery, hold a current driver's and/or operator’s licence in compliance with Relevant Laws. The Contractor must not permit any Personnel to provide any part of the Services which involve driving or machinery operating duties until the Contractor has ensured that each such Personnel holds a current driver's and/or operator’s licence. the 17.4 If Australia Post is of the opinion that any of the Contractor’s Personnel: (a) have represented, do represent or may represent an unacceptable security risk in respect of the provision of Services; (b) have not previously performed, or are not currently performing, the Services in accordance with this Agreement, including in accordance with the Performance Requirements; or 17.6 The costs of verifying that Personnel hold a current driver's and/or operator’s licence will be borne solely by the Contractor. 17.7 The Contractor must ensure that all of its Personnel at all times hold a valid visa which entitles them to work in Australia. The Contractor must not permit any Personnel to provide any part of the Services until the Contractor has ensured that each of its Personnel holds a current visa to work in Australia. (c) have caused or contributed to, or are causing or contributing to, a breach of this Agreement, then Australia Post may in its discretion: absolute (d) immediately cancel access of such Personnel to any Australia Post computer system or premises; and/or (e) immediately suspend (temporarily or otherwise) each such Personnel’s right to perform the Services on behalf of the Contractor, and as soon as practicable direct in writing that the Contractor permanently remove any such Personnel from providing the Services; and/or Page | 11 In accordance with all Relevant Law the Contractor shall not allow any Personnel to work outside the conditions of their visa, including excess hours. 18 No Rights Over Articles 18.1 The Contractor acknowledges and agrees that: (a) the Contractor is a bailee in relation to Articles and accepts all obligations of a bailee; and (b) the Contractor has no right of lien or right or ability to in any way encumber Articles. AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement 19 Supply of Contract Materials by Australia Post 19.1 Australia Post will supply to the Contractor, at its own cost, sufficient copies of the Contract Materials (including WH&S information) considered necessary by Australia Post for the proper and complete performance of this Agreement. 19.2 Contract Materials remain the property of Australia Post, and must not, without the prior written approval of Australia Post, be used, copied or reproduced for any purpose other than the provision of the Services, and must be returned by the Contractor to Australia Post on demand. 19.3 Intellectual Property in all Contract Materials will remain, as between Australia Post and the Contractor, the property of Australia Post for all purposes. 20 Equipment and Tools of Trade 20.1 The Contractor acknowledges Australia Post may, at its discretion, provide Equipment to the Contractor at the rental fee (if any) set out at Item 14 of the Reference Table which the Contractor agrees to pay (together with any GST thereon) as and when due. Any Equipment so supplied will remain the property of Australia Post and the Contractor will hold the same (at the Contractor’s risk) as bailee only. The Contractor must ensure that Equipment is kept safe, secure, adequately maintained and used only in a proper and safe manner strictly in accordance with manufacturers’ specifications, safe operating procedures and all Relevant Laws and for the sole purpose of performing the Services. The Contractor will be responsible for ensuring that its Personnel are adequately trained in the use of the Equipment and will bear all associated costs. The Contractor will be liable for replacement or repair of any Equipment which is lost, stolen, damaged or misused. On termination of this Agreement the Contractor must immediately return all Equipment to Australia Post in good condition, fair wear and tear only excepted. 20.2 The Contractor must provide all Tools of Trade and maintain them in sound working order and good condition, at its own cost, and use them only in a proper and safe manner strictly in accordance with manufacturers’ specifications and all Relevant Laws. 20.3 The Contractor must take all reasonable steps to ensure that no Tools of Trade, or their use, have any detrimental effect on the Services, Australia Post Property, Customers or the general public. 20.4 Any damage caused to any property belonging to Australia Post or any third party, either Page | 12 directly or indirectly, as a result of any breach of clauses 20.1, 20.2 or 20.3 must be rectified by the Contractor at the Contractor’s cost and the Contractor indemnifies and must keep indemnified Australia Post in respect of any such damage. 20.5 Australia Post acknowledges that the amount it will charge as a rental fee for equipment and tools of the trade as set out in Item 14 of the Reference Table is a direct and proper reflection of the actual cost of the service or equipment in respect of which the costs are charged. Australia Post also accepts the Contractor may wish to obtain the services or equipment from a supplier other than Australia Post. 21 Security Checks 21.1 The Contractor must take all reasonable steps to ensure that no Personnel pose an unacceptable risk to the safety or security of any Person, property or working environment. 21.2 The Contractor acknowledges performance of the Services will entail (among other things) the Contractor and its Personnel being entrusted: (a) with the care and carriage of Articles; (b) to enter commercial or private premises (including secured premises); and (c) to deal and interact with individuals including staff at Australia Post, Customers and members of the public generally. As a consequence Australia Post requires security and identity checks be undertaken (including inquiries with the Australian Federal Police and/or any Police Service of a State or Territory) in respect of the Contractor (including in Australia Post’s absolute discretion if the Contractor is a Corporation, any of the Contractor’s directors whether they perform or intend to perform the Services or not) and its Personnel (each a Security Check) as and when from time to time required by Australia Post. 21.3 It is a condition precedent to their undertaking performance of any Services, and continuing to perform any Services, that all Personnel consent to undergo (and then pass) a thorough Security Check. The Contractor will not be permitted, and must not permit any Personnel, to provide any part of the Services until an initial Security Check has been completed. The Contractor must provide Australia Post with all necessary Personnel details for that purpose. Australia Post will advise the Contractor of its decision as soon as practicable. 21.4 The Contractor must immediately advise Australia Post if, at any time, the Contractor (including if the Contractor is a Corporation, any of the Contractor’s directors) or any of its AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement Personnel is charged with, convicted of, or notified that they may be charged with any offence. 21.5 The costs of Security Checks required by clause 21.2 and 21.3 will be borne by the Contractor. 22 Australia Post Reputation 22.1 The Contractor must at all times, by itself and its Personnel, act so as to preserve the good name and reputation of Australia Post when performing the Services including when driving Vehicles and otherwise act in a courteous, safe and responsible manner (including in respect of disposal of litter). 22.2 If any dispute or matter which does or may affect the good name or reputation of Australia Post arises between the Contractor and a third party, including in respect of the provision of Services, the Contractor must immediately notify Australia Post, giving full particulars of the dispute or matter. 22.3 If Australia Post considers that such dispute or matter does or may have some adverse impact on the good name or reputation of Australia Post then, without prejudice to the rights of either the Contractor or Australia Post, Australia Post may resolve the dispute for and on behalf of the Contractor on such terms and conditions as it considers (in its sole discretion) reasonable. Any costs incurred by Australia Post (including any costs of settlement) must be reimbursed by the Contractor as a liquidated debt on demand unless: (a) the Contractor considers the terms and conditions upon which Australia Post resolved the dispute were grossly unreasonable; and (b) the Contractor notifies Australia Post of this in writing within fifteen (15) Business Days of the date upon which the dispute was settled; then the matter will be dealt with as a Dispute under clause 31. 23 Contractor’s Insurances 23.1 Before the Commencement Date the Contractor must effect, with an insurer reasonably acceptable to Australia Post, all insurances required under Relevant Law. The Contractor must also maintain the following insurances for the term of this Agreement: (a) Public and Products Liability insurance with a limit of not less than A$20 Million any one event and in the aggregate per annum in respect of Products. (b) Motor Vehicle Third Party Property Damage with a limit of not less than A$20 Million any Page | 13 one event, unlimited in the aggregate per annum. (c) Marine Cargo insurance covering fire, flood, collision, overturning, theft, loss of or damage to Articles in possession of the Contractor for not less than $50,000.00 any one load/conveyance or if a greater amount is specified in Item 15 of the Reference Table, for not less than that greater amount any one load/conveyance; and (d) General property insurance covering loss of or damage to any Equipment, anywhere in Australia, for not less than the amount specified in Item 16 of the Reference Table. 23.2 The insurance policy outlined under clause 23.1(a) must include Australia Post as an additional insured in respect of the Services and provide that: (a) the insurer waives all rights, remedies or relief to which it might become entitled by subrogation against any of the parties comprising the insured and that failure by any insured to observe and fulfil the terms of the policy will not prejudice the insurance in regard to any other insured; and (b) in so far as the policy may cover more than one insured all insuring agreements and endorsements with the exception of limits of liability will operate in the same manner as if there were a separate policy of insurance covering each party comprising the insured. 23.3 All other insurances must note Australia Post for their respective rights and interests. 23.4 Workers' Compensation Liability Insurance or Employers' Except where clause 23.5 applies: (a) The Contractor must obtain and maintain for the Term, insurance or pay levies or similar charges, as required by any legislation relating to compensation in respect of claims by injured workers, their legal representatives or dependants. (b) The Contractor indemnifies and must keep indemnified Australia Post in respect of any claim for personal injury or death by any of the Contractor's Personnel, their personal representatives or their dependents, including a claim at common law, provided that the Contractor's liability to indemnify Australia Post shall be reduced proportionately to the extent that the negligent act, omission or default of Australia Post or its servants or agents contributed to the relevant injury, loss or damage. AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement (c) For the purposes of this clause 23 "worker" means any natural Person in respect of whom the Contractor is liable or in respect of whom the Contractor must take out insurance by reason of any legislation dealing with workers' compensation. (e) Where the Contractor provides a cover note, it must within a further five (5) Business Days provide a certificate of currency in respect of the particular policy of insurance. 23.9 Procedure as to claims 23.5 Where the Contractor is prevented by law from taking out workers' compensation insurance the Contractor must, before commencing the Services, obtain and maintain for the Term personal accident insurance sufficient to: The Contractor must: (a) immediately notify its insurer or broker, and Australia Post, in writing of any occurrence, injury, death, loss, destruction or damage likely to give rise to a claim under the policies of insurance referred to in this clause 23; and (a) maintain as far as possible the Contractor's projected income for the period of this Agreement; and (b) keep Australia Post informed of all subsequent developments concerning the possible claim or claims, (b) cover medical and like expenses for any such personal accident. 23.6 Insurance notices provided always Australia Post acknowledges that the Contractor may take immediate action to avoid loss of life or damage to property where reasonably necessary in the circumstances. All policies of insurance effected under this Agreement must contain provisions: (a) requiring the insurer to inform Australia Post in writing that a notice has been given to or served upon the Contractor under the policy including any notice of cancellation, notice of renewal or other notice under or in relation to the policy; and (b) which provide that a notice of claim given to the insurer by either Australia Post or the Contractor will be accepted by the insurer as a notice of claim. 23.7 The Contractor must ensure that all of its Subcontractors are similarly insured and provide indemnities to the same extent as required of the Contractor. 23.8 Evidence of insurances (a) The Contractor acknowledges and warrants that prior to the Commencement Date it will have taken out insurance policies, which comply with this clause 23. (b) The Contractor must, prior to the provision of Services under this Agreement, and as may reasonably be requested by Australia Post from time to time, provide certificates of currency, as evidence for each of the policies of insurance required under this Agreement in a form satisfactory to Australia Post. The certificates must be delivered to Australia Post by the Commencement Date. (c) The Contractor must provide all certificates of currency to Australia Post each year within 7 days of the policy renewal date. (d) All certificates of currency must detail that each insurance policy is paid in full for the annual policy period. Certificates of currency must also contain sufficient detail to confirm the Contractor’s compliance with the requirements stated under Clause 23. Page | 14 24 Contractor’s Liability and Indemnities 24.1 Parties Indemnified For the purposes of this clause 24 only, “Australia Post” includes any person in respect of whom Australia Post is vicariously liable, including its employees and agents (but, for removal of doubt, excluding Personnel). 24.2 Liability for damage to property The Contractor will be solely liable for and indemnifies and must keep indemnified Australia Post from and against any liability, loss, claim or proceeding in respect of any injury, loss or damage whatsoever to any property real or personal insofar as such injury, loss or damage arises out of, or in the course of, or by reason of the Contractor’s performance of the Services. 24.3 Liability for injury to persons other than the Contractor’s workers covered under clause 23.3 The Contractor will be liable for and indemnifies and must keep indemnified Australia Post from and against any liability, loss, claim or proceeding whatsoever arising under any legislation or at common law in respect of personal injury to or death of any person other than the Contractor’s Personnel in respect of a claim covered under clause 23.3(b), arising out of or in the course of or caused by the performance of the Services. 24.4 Australia Post Liability Limited Australia Post will not be liable to the Contractor or third parties for any loss or damage whatsoever suffered, or that may be suffered (including consequential loss) as a result of any act or omission by Australia Post, AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement whether negligent or otherwise, in the performance or non performance of any duty, obligation or function under this Agreement or in any way arising out of this Agreement except for: (iii) in respect of an Article, results from delayed delivery, mis-delivery, negligent delivery or non-delivery by the Contractor. 24.7 Third Parties (a) loss or damage to the Contractor’s property caused by, and solely to the extent of, the negligence of Australia Post; and (a) Where a third party suffers loss or damage to an Article carried by the Contractor Australia Post may agree to pay compensation to the third party on such terms and conditions as it considers (in its sole discretion) reasonable, regardless of whether Australia Post has excluded or limited its liability to third parties. (b) loss or damage arising from personal injury or death suffered by the Contractor or any Personnel involved in the performance of the Services, caused by, and solely to the extent of, the negligence of Australia Post. (b) Where Australia Post has agreed to pay a third party compensation, in accordance with clause 24.7(a), that compensation and any costs incurred by Australia Post (including administrative costs of dealing with the claim, the costs of retrieval, repair and further processing of an Article and the cost of arranging settlement) must be reimbursed by the Contractor as a liquidated debt on demand, unless: 24.5 Australia Post Property The Contractor acknowledges Australia Post Property entrusted to the Contractor is not property of the Contractor and the Contractor indemnifies and must keep indemnified Australia Post in respect of the theft, loss of or damage to, or loss or damage arising from the use or carriage of, any item of Australia Post Property. (i) 24.6 Generally The Contractor indemnifies and must keep indemnified Australia Post from and against: (a) any loss and damage whatsoever suffered, or that may be suffered (including indirect and consequential loss) by Australia Post or third parties in any way arising out of this Agreement, whether such loss or damage is a result of any act or omission by Australia Post, whether negligent or otherwise, in the performance or non-performance of any duty or obligation or function under this Agreement, or the exercise of any authority, right or power by Australia Post, except for that loss or damage in respect of which Australia Post is liable under clause 24.4; (b) any claim, demand, loss, liability, or expense arising out of the Contractor’s failure to fully comply with its obligations under this Agreement or any Relevant Law or Relevant Standard; (c) any amount paid by Australia Post to settle any dispute between the Contractor and a third party; and (d) the theft, loss of or damage to, or loss or damage arising from the use or carriage of, any Australia Post property entrusted to the Contractor which: (i) is caused by the Contractor; (ii) arises during the time that the Contractor has that item of Australia Post Property in its possession or control; or Page | 15 the Contractor considers the terms and conditions upon which Australia Post resolved the matter were grossly unreasonable; and (ii) the Contractor notifies Australia Post of this in writing within fifteen (15) Business Days of the date upon which the matter was settled: then the matter will be dealt with as a Dispute under clause 31. Should an arbitrator find that the terms and conditions were grossly unreasonable, there is no obligation on the Contractor to reimburse Australia Post for such amount. (c) The parties agree that for the purposes of determining whether the resolution under clause 24.7(b) is grossly unreasonable, the availability of an exclusion or limitation of liability is to be disregarded. 25 Audit and Searches 25.1 Australia Post may, at any time on a Business Day and after giving reasonable (in the circumstances) notice to the Contractor, conduct (either by itself or through an agent) audits or inspections of Data recorded or retained on any medium including books and records of the Contractor, or at any time and without prior notice conduct searches of the Contractor’s premises, Vehicle or Vehicles, for the purpose of assessing the level of compliance by the Contractor with the terms of this Agreement. 25.2 The Contractor agrees, for the purpose of assisting such audits or inspections, to grant or arrange access by Australia Post (or any AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement nominated agent) to the Contractor’s premises or any other place where the Data or records are maintained or kept (including directing any third party who may have custody or control of such to provide such access if it is lawfully able to do so). Further, the Contractor agrees to give reasonable assistance to Australia Post (or any nominated agent) in order to ensure that any audit or inspection under this clause 25 proceeds expeditiously and is not adversely affected. 25.3 The Contractor must provide to Australia Post, within ten (10) Business Days of a written request, evidence in writing that: (a) any policy of insurance required under this Agreement is current; and (b) any licence or registration required by any Relevant Law to be held current by the Contractor or any of its Personnel, is current. 25.4 The Contractor must on each anniversary of the Commencement Date provide to Australia Post a copy certificate of currency dated no more than 14 days previously in respect of each policy of insurance required under this Agreement together with up-to-date details regarding Items 1, 2 and 3 of the Reference Table and (where the Contractor is a Corporation) the name and address of each then current director, even if there has been no change over the prior twelve months. 26 Co-operation With Other Contractors 26.1 The Contractor will, when performing Services or undertaking activities ancillary to the performance of Services, cooperate, liaise and coordinate with Australia Post, its employees and agents and all other contractors so as to avoid interference with or disruption to or delay to the work of other contractors. 27 Confidential Information to enable the Contractor to perform its obligations pursuant to this Agreement or to advise the Contractor; and (ii) any Person to whom the Contractor is required to disclose the Confidential Information by law, and provided that the Contractor has given at least 24 hours written notice on a Business Day to the Australia Post Manager of this requirement and its intention to disclose the Confidential Information; (d) maintain proper and secure custody of the Confidential Information; (e) use its best endeavours to prevent the use or disclosure of Confidential Information (otherwise than in accordance with this clause 27) by third parties which have received or accessed that information from or through the Contractor; (f) notify Australia Post of any actual or suspected breach of confidence or security of Confidential Information of which the Contractor becomes aware; (g) ensure that its Personnel and any professional service providers are aware of the confidential nature of the Confidential Information and ensure that its Personnel and professional service providers hold that information in confidence on the terms of this clause 27 and that Personnel who are Subcontractors, and professional service providers upon request by Australia Post, execute a confidentiality agreement in the form or to the effect of this clause 27; (h) as soon as is practicable after the termination or expiration of this Agreement, deliver to the Australia Post Manager: (i) Confidential Information 27.1 The Contractor acknowledges that the Confidential Information and all Intellectual Property rights in such information will remain the sole and exclusive property of Australia Post. (ii) any Australia Post forms or documents in the Contractor’s possession or control; and (iii) any Vehicle identification sign and any identification for the Contractor, and/or its Personnel, provided by Australia Post; and 27.2 The Contractor must: (a) treat Confidential Information as secret and confidential; (b) not, without the prior written consent of Australia Post, use Confidential Information for any purpose other than the performance of its obligations pursuant to this Agreement; (c) restrict the disclosure Information to: (i) Page | 16 of Confidential those of its Personnel and professional service providers who require all the Confidential Information which is in its possession or control and is in a physical form, including all copies of computer files; and (iv) any Australia Post insignia or badges used on clothing provided always the Contractor may (but only to the extent required to comply with any Relevant Laws) make and retain on the provisions of this clause 27 copies of any Confidential Information excluding Confidential Postal Information and Documents. Where the Contractor claims an exemption from its AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement obligation under this clause 27, it will bear the onus of showing its entitlement to such exemption. 27.3 The Contractor acknowledges that it is aware of, and will bring to the attention of all Personnel prior to their performing any Services, the provisions of Part 7B of the Act rendering it an offence punishable by fine and/or imprisonment to use or disclose to any Person Confidential Postal Information and Documents. 28 Work Health and Safety and Environment Management Australia Post will be entitled, but not obliged, to issue directions in relation to any work health, safety and environmental (“WHS&E”) issues which arise in respect of the rights and obligations of the parties to this Agreement and the Contractor must, at its own cost, comply with such directions. 28.2 The Contractor acknowledges and agrees that in relation to its provision of services in Australia, the Contractor must: comply with and ensure that any Subcontractors, employees and agents comply with all Relevant Laws and Relevant Standards and the requirements of any Government authority relating to WH&S in respect of its obligations under this Agreement; and (b) exercise all necessary precautions for the health and safety of all Persons, including its employees, employees of Australia Post, other contractors, employees of any of the Contractor’s subcontractors as well as members of the public who may be affected by the actions of the Contractor or its Subcontractors. 28.3 The Contractor must document and implement an WH&S Management Plan that demonstrates the Contractor’s compliance with all duties of an employer specified in relevant WH&S legislation and satisfies Australia Post’s WH&S requirements. A copy of the WH&S Management Plan must be submitted to Australia Post and the Contractor shall, at their own cost or as agreed with Australia Post, implement or modify any procedure or system as Australia Post may require to ensure the Contractor and their Personnel comply with the necessary WH&S obligations to Australia Post’s satisfaction. The WH&S Management Page | 17 28.4 The Contractor must comply with all Australia Post WH&S requirements including: (a) All Australia Post policies and procedures that apply at the Australia Post premises where the Contractor is working. (b) The Contractor’s responsibilities set out in the General Information for Tenderers of the tender pack (WH&S). Permitting Australia Post, or other parties deemed appropriate by Australia Post, to conduct occasional audits of the Contractor’s WH&S Management Plan as necessary, which may include WH&S observations of the and Contractor’s employees Subcontractors. Any costs associated with these audits are to be borne by the Contractor. (c) 28.1 (a) Plan shall comply with the requirements of Australian Standards: (d) Complying with any Australia Post direction to Contractor Personnel to wear Personal Protective Equipment such as approved High Visibility Clothing and Safety Footwear. The Contractor will be responsible for its own supply of this safety equipment including maintenance/replacement and training on its use. 28.5 The Contractor must immediately notify Australia Post of any accident, injury to or death of a person and/or damage to property and/or environmental damage including any significant “near miss” incident or dangerous occurrence which may affect or impact on the WH&S Management Plan and whilst undertaking work as part of this Agreement. This information must be recorded on the Australia Post incident report form. The Contractor must within 5 days of the incident give a report to Australia Post providing details of the incident, its cause and the action taken by the Contractor to eliminate or avoid the occurrence of another such incident. The Contractor shall provide at, their own cost any reports, or complete any documents, required by Australia Post in relation to the investigation of the incident. 28.6 If Australia Post notifies the Contractor that it believes that the Contractor is: • not satisfactorily performing the Services in compliance with the WH&S Management Plan; or • not complying with Australia Post’s WH&S policies and procedures at the Australia Post premises where the Contractor is working for Australia Post; or AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement • is endangering the health and safety of its employees, Australia Post’s employees, other contractors or visitors or a Subcontractor's employees, plant, equipment or materials (d) a period of at least ninety (90) days notice is given (in which event there will be no necessity to ascribe a reason and, clause 31 will have no application). the Contractor must promptly rectify the situation. 28.7 Australia Post may direct the Contractor to suspend the Services until such time as the Contractor satisfies Australia Post that it is complying with the WH&S Management Plan and Australia Post’s WH&S policies and procedures. Australia Post shall not be liable to make payment for any costs incurred as a consequence of such suspension. (e) a breach by the Contractor will not be considered remedied until all costs or losses incurred by Australia Post as a consequence of the breach (including those mentioned in clause 30.3 and any payments made to remedy a complaint by a Customer in relation to performance of Services) are paid to Australia Post by the Contractor; and 28.8 29 The Contractor will indemnify Australia Post from and against any claim, demand, loss, liability, loss or damage arising from, or caused by the failure of the Contractor or its Personnel to comply with Australia Post’s WH&S policies and procedures and/or the Contractor’s WH&S Management Plan. For the purposes of this clause 30.1: (f) without limiting the meaning of “material breach”, the Contractor will be considered to commit a material breach of this Agreement if the Contractor or its Personnel: Cooperation on Transition 29.1 The Contractor must at all times (whether prior to or after the expiration or earlier termination of this Agreement) co-operate in good faith, at its cost, in the implementation of appropriate transitional arrangements reasonably required by Australia Post to facilitate any other Person nominated by Australia Post providing the Services or services similar to the Services so as to, as far as practicable, ensure continuity of the Services with minimal disruption to Australia Post or Customers. Such assistance will include assistance with training any new Australia Post contractor prior to any change over. The Contractor will not be entitled to any payment from either Australia Post or any new contractor for providing such co-operation and assistance. 30 Termination 30.1 When a party may terminate Either party may terminate this Agreement at any time with immediate effect only (for the removal of doubt, in no other way or circumstances) by giving the other party written notice of termination where: (a) the other party commits or suffers an Insolvency Event; or (b) the other party serves an Improvement Notice setting out the breaches of this Agreement (not being a material breach) and does not rectify the breach within ten (10) Business Days of being notified to remedy it; or (c) the other party commits a material breach of this Agreement; or Page | 18 AUSTRALIA POST (i) breaches this Agreement in a manner that impacts adversely on the security of Australia Post Property; or (ii) breaches any of clauses 11, 12, 13, 15, 22, 27, 28 and 37; or (iii) engages in conduct which materially and unfavourably reflects upon the reputation or goodwill of Australia Post or which is otherwise materially prejudicial to Australia Post or its Intellectual Property; or (iv) engages in conduct that is illegal, dishonest or unconscionable; or (v) (or the Contractor’s Representative or, if the Contractor is a Corporation, any of the Contractor’s directors) is convicted of or charged with a criminal offence; or (vi) fails to perform the Services or conveys, indicates or demonstrates an intention or inability to continue to perform the Services, for a continuous period exceeding five (5) Business Days; or (vii) performs the Services in a way that does or may endanger the health and/or safety of any Person; or (viii) fails, on more than ten (10) days in any rolling twelve (12) month period, to fully satisfy all KPIs; or (ix) suffers, on at least three (3) occasions in any rolling twelve month period, Australia Post to obtain Substitute Services within the meaning in clause 30.3; or (x) suffers, in any rolling twelve (12) month period, Australia Post to give at least three (3) Improvement Notices under clause 30.1(b) or any like provision in an antecedent agreement; or SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement (xi) otherwise fails to adequately perform its obligations under this Agreement or conveys, indicates an unwillingness or inability to adequately perform its obligations under this Agreement. (a) Australia Post may, in lieu of the notice period required by section 30.1(d), pay the Contractor an amount calculated in accordance with this section. (b) The amount payable is the gross amount less the appropriate taxation and agreed deductions. 30.2 Consequences of Termination (a) Where Australia Post has terminated this Agreement otherwise than by notice under clause 30.1(d), it will be entitled to recover from the Contractor (and the Contractor indemnifies and must keep indemnified Australia Post from and against) all loss, damage and expense incurred or suffered or to be incurred or suffered by Australia Post directly or indirectly as a consequence of that termination or any event giving rise to such termination. (b) Either party may, as a consequence of termination and unless expressly otherwise constrained by this Agreement, exercise all available legal and equitable remedies including but not limited to, suing for compensation or seeking orders for a declaration, injunctive relief or damages or such other orders and relief as it may think fit. 30.3 Alternative arrangements unable to provide Service when Contractor (a) Where the Contractor (whether being unwilling or unable) fails for any reason (other than an event of Force Majeure dealt with under clause 32) to provide all or part of the Services strictly in accordance with Performance Requirements either temporarily or otherwise, Australia Post may in addition to all of its other rights under this Agreement (but is not obliged to), without notice, make alternative arrangements for the performance of the Services (Substitute Services). (b) Any costs incurred by Australia Post in remedying such failure and arranging Substitute Services (including internal costs, legal costs and any loss of revenue from or compensation paid to any Customer as a consequence of the failure) will be a liquidated debt due by the Contractor to Australia Post, payable on demand. (c) Where Australia Post obtains Substitute Services the Contractor will not be entitled to any Contract Fee whatsoever in respect of such Substitute Services and Australia Post will as soon as practicable provide the Contractor with details in writing of the steps taken and costs incurred. 30.4 Payment in lieu of Notice Page | 19 31 Dispute Resolution 31.1 Restriction on legal proceedings (a) Subject to paragraph (b), no party may commence legal proceedings in relation to any Dispute unless and until: (i) the dispute resolution procedures in this clause 31 have first been followed in respect of the Dispute; (ii) a decision has been made by the arbitrator in respect of the Dispute in accordance with clause 31.5(f); and (iii) ten (10) Business Days have elapsed since the delivery of the arbitrator’s decision. (b) Should any party reasonably consider that injunctive, declaratory or other interlocutory relief (including for specific performance) against another party is necessary or desirable in order to protect or preserve its rights under this Agreement, that party may apply to a court of competent jurisdiction for such relief pending the outcome of any arbitration pursuant to clause 31.5. 31.2 Dispute Notice In the event of a Dispute, the party disputing the issue may give a written notice to the other specifying the nature of the Dispute (Dispute Notice). The Dispute Notice must be in the form (if any) prescribed by Australia Post from time to time. 31.3 Good faith discussions Within ten (10) Business Days (or such other period as agreed in writing by the parties) of the giving of a Dispute Notice the Australia Post Manager or his nominee and the Contractor’s Representative must meet and engage in good faith discussions with the objective of resolving the Dispute by agreement. 31.4 Termination of discussions If after a further period of ten (10) Business Days after the period specified in clause 31.3 the parties have not been able to resolve their Dispute, either party may then by written notice terminate the operation of the procedure in clause 31.3 in relation to the Dispute. AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement 31.5 Arbitration (a) If a notice has been issued by either party under clause 31.4, either party may submit the Dispute to an arbitrator for arbitration in accordance with this clause 31.5. (i) The cost of, and incidental to, the arbitration and the proportion in which the parties shall pay such costs will be at the discretion of the arbitrator. 31.6 Use of Documentation (b) The following procedures apply to the appointment of an arbitrator for the purpose of arbitration proceedings under this clause 31.5: (i) the parties agree to appoint an arbitrator from the Institute of Arbitrators and Mediators of Australia; (ii) the parties agree to make the appointment within five (5) Business Days of the Dispute being submitted to arbitration; and (iii) if the parties do not agree on the arbitrator to be appointed within the period referred to in paragraph (ii), the party seeking arbitration will request the President of the Institute of Arbitrators and Mediators of Australia to appoint an arbitrator within five (5) Business Days after that request is made. (c) Subject to clause 31.5(d) the arbitration is to be conducted in accordance with and subject to the Commercial Arbitration Act 1984 (Vic) and by executing this Agreement, the parties acknowledge that they have signified their agreement in writing that the Dispute be referred to arbitration within the meaning of that Act. (d) The arbitrator will have no power to: (i) grant equitable relief; (ii) exercise a discretion available to a party under this Agreement without that party’s written consent; or (iii) set aside the exercise of a discretion made by a party under the Agreement without that party’s written consent. (e) The venue of the arbitration will be in the capital city of the State in which the majority of Services are to be performed unless another venue is mutually agreed between the parties. (f) The parties agree to request that the arbitrator make a determination within twenty (20) Business Days of the Dispute being submitted for arbitration. (g) Until the arbitrator hands down an award, the parties are obliged to fulfil their obligations under this Agreement. (h) A party may be represented in respect of the arbitration by a duly qualified legal practitioner. Page | 20 The parties acknowledge that the sole purpose of any exchange of information or documents pursuant to this clause 31 is for the resolution of a Dispute and such information or documents cannot be used for any other purpose. 31.7 Confidentiality The parties acknowledge that all matters arising and dealt with under this clause 31 are confidential 32 Force Majeure 32.1 Neither party is liable for delays or for nonperformance due to an event of Force Majeure, subject to compliance with the obligations in this clause 32. 32.2 Where a party is unable, wholly or in part, by reason of an event of Force Majeure, to carry out any obligation under this Agreement, that obligation is suspended so far as it is affected by the continuance of that event of Force Majeure provided always that the party affected: (a) gives to the other party prompt notice of that event of Force Majeure and the affected obligation with reasonably full particulars and, in so far as known, the probable extent to which it will be unable to perform or be delayed in performing that obligation; (b) uses all reasonable endeavours to remove that event of Force Majeure as quickly as possible; and (c) complies fully with clause 32.4, if applicable. 32.3 Each party will use all reasonable endeavours to continue to perform its obligations for the duration of the event of Force Majeure. 32.4 Immediately on the occurrence of an event of Force Majeure, the parties must meet in good faith to discuss the situation and endeavour to achieve a mutually satisfactory resolution of the problem. A satisfactory resolution may include the carrying out of the Services on agreed terms in whole or in part by Australia Post personnel or personnel nominated by Australia Post or the employment by Australia Post of some or all of the Contractor’s Personnel and/or the use by Australia Post, its employees or personnel nominated by it of materials, parts, tools, instruments and equipment owned or used by the Contractor in or for the provision of the Services. The Contractor agrees to facilitate any such resolution. AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement 32.5 An obligation to pay money, which is due and payable is not excused by Force Majeure. 33.3.2 In the event of a Registration Change or Registration Failure, Australia Post: 32.6 If an event of Force Majeure prevents the Contractor from performing its obligations under this Agreement for a period in excess of thirty (30) continuous days, Australia Post may immediately terminate this Agreement without cause upon written notice to the Contractor. (a) May at its sole discretion review the amounts paid or payable to the Contractor under this Agreement to take into consideration the change in the Contractor’s GST registration status (including the Contractor’s ability to claim any available input tax credits); 32.7 For the purposes of this clause 32: (b) May require the Contractor to produce evidence to confirm the change in its GST registration status; (a) “Force Majeure” means any cause which is not reasonably within the control of the party affected and includes: (i) an act of God; (ii) strike, lockout, industrial action or other interference with work; (iii) war declared or undeclared, blockade, disturbance, lightning, fire, earthquake, storm, flood explosion; and (iv) governmental or quasi-governmental restraint, expropriation, prohibition, intervention, direction or embargo; (b) “all reasonable endeavours” does not require the settlement of strikes, lockout or other labour disputes, or claims or demands by any government or quasigovernmental authority on terms contrary to the wishes of the party affected. 33 Goods and Services Tax (“GST”) 33.1 Interpretation (c) Will not be liable for any GST amount not disclosed by the Contractor to the Australia Taxation Office (“ATO”) whether in the required form or otherwise; (d) Will not be liable for any GST amount not paid by the Contractor to the ATO; (e) Will not be liable for any penalties and/or general interest charge that may arise because of an undisclosed or unpaid GST amount by the Contractor; (f) Will not be liable for any other loss or expense or liability that arises as a result of the change in the Contractor’s GST registration status; (g) May require the Contractor to issue a tax invoice in relation to taxable supplies made during the period the Contractor was required to be registered for GST. Unless the contrary intention appears, words or expressions used in this clause that are defined in the A New Tax System (Goods and Services Tax) Act 1999 (Cth) (“GST Act”) have that same meaning. 33.3.3 The Contractor indemnifies and must keep indemnified Australia Post against all losses, liabilities, claims and expenses which Australia Post may suffer, incur or be liable for as a result of or arising from any Registration Change or Registration Failure. 33.2 GST-inclusive Amounts 33.4 Adjustment Events The parties agree and acknowledge that all pricing, consideration and amounts otherwise payable under this Agreement include any applicable GST (unless GST-exclusive amounts have been expressly specified). If in relation to a supply made under this Agreement an adjustment event occurs that gives rise to an adjustment, then the price of that supply, including any GST, will alter accordingly and where necessary a payment will be made to reflect the price adjustment. 33.3 Contract Fee Adjustment registration status - GST 33.5 Recipient Created Tax Invoice 33.3.1 Where a Contractor: (i) Changes its GST registration status by either becoming registered for GST during the Term or ceasing to be registered for GST during the Term (“Registration Change”); or (ii) Is required to be registered under Part 2-5 of the GST Act during any part of the Term but is not registered or has stated its intention to become registered in its Tender but does not become registered within 90 days of the Commencement Date (“Registration Failure”); Australia Post will prepare Recipient Created Tax Invoices (RCTI’s) on the Contractor’s behalf. This clause is intended to be the “RCTI Agreement” between the Contractor and Australia Post and the Contractor and Australia Post agree that: (a) this clause applies to all supplies made by the Contractor to Australia Post under this Agreement; (b) this RCTI Agreement from the earlier of: the Contractor must immediately inform Australia Post of the Registration Change or Registration Failure. Page | 21 AUSTRALIA POST (i) or applies the Commencement Date; SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement (ii) if either party is not registered for GST at the Commencement Date, the date when that unregistered party becomes registered for GST; (c) (iii) the Contractor’s dealings with Australia Post are terminated or expire. 33.6 Non-monetary consideration If non-monetary consideration is given for a taxable supply under this Agreement and the GST-inclusive market value of that consideration is not clearly identifiable, the parties must discuss and mutually agree on the GST-inclusive market value of that non-monetary consideration using GSTR 2001/6 as a guide. Australia Post will: (i) issue the original or a copy of the RCTI to the Contractor within twenty-eight (28) days of determining the value of a taxable supply by the Contractor; 33.7 Entitlement to input tax credits acquisitions made from third parties (ii) issue the original or a copy of an adjustment note to the Contractor for any adjustments made to a supply, within twentyeight (28) days of that adjustment; If Australia Post is required to pay, reimburse or contribute to an amount paid or payable by the Contractor in respect of an acquisition from a third party, including any amount stated in Tender Form of the Tender documents that forms part of the Contract Fee submitted by a Contractor, the GST-exclusive amount for payment, reimbursement or contribution shall be the acquisition price paid by the Contractor, less any input tax credit it is entitled to claim. (iii) reasonably comply with its obligations under the GST Law; (iv) notify the Contractor if it ceases to be registered for GST; (v) not issue a document that would otherwise be a RCTI, on or after the date when it has failed to comply with any requirements of the GST Law; (d) The Contractor will: (i) not issue tax invoices or adjustment notes to Australia Post for the supplies covered by this RCTI Agreement; 33.8 Survival All Sub-clauses of this Clause 33 survive the execution and delivery of this Agreement and the completion of the transactions contemplated by it. 33A Australian Business Number “ABN” If the Contractor is entitled to obtain an Australian Business Number (“ABN”) under the A New Tax System (Australian Business Number) Act 1999 (Cth), the Contractor: (ii) immediately notify Australia Post if it ceases to be registered for GST purposes; (a) agrees to obtain an ABN and provide that ABN to Australia Post; and (iii) indemnify and keep indemnified Australia Post for any loss, cost or liability for GST and penalty that may arise as a result of the Contractor’s failure to notify Australia Post that it has ceased to be registered for GST purposes; (b) must ensure that it: (i) continues to have an ABN during the Term; (ii) quotes its ABN on each invoice it provides to the other party; and (iii) advises Australia Post in writing immediately if its ABN changes or its ABN is cancelled; and (e) Both parties acknowledge that they are registered for GST at the date when this RCTI Agreement applies, stated in clause 33.5 (b) above; (f) (c) indemnifies Australia Post for any loss or damage suffered Australia Post or any tax, charge, fine, penalty or other impost which Australia Post incurs or becomes liable to pay, as a result of its breach of any law relating to ABNs or GST. This RCTI Agreement will terminate immediately if: (i) either party ceases to be registered for GST; (ii) either party fails to comply with the terms of this RCTI Agreement; or Page | 22 for 34 Conflict of Interest 34.1 The Contractor must not, concurrently with performing Services, carry any goods other than Articles nor perform any other activities of like or similar nature to Services, which would in AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement the reasonable opinion of Australia Post interfere with the Performance Requirements. do any of the following without the prior written permission of Australia Post (which may be granted or withheld in its absolute discretion): 34.2 During the Term the Contractor and its Personnel must: (f) approach, solicit or contact any Restricted Person with the purpose of enticing such Restricted Person to cease doing business with Australia Post or to reduce the amount of business the Restricted Person would normally do with Australia Post or to use any mail service other than that provided by Australia Post; or (a) comply in all respects with Our Ethics and the Supplier Code of Conduct; (b) not, while performing Services, whether on its own account or in any other capacity, directly or indirectly engage in any other business pursuits or employment if, in the reasonable opinion of Australia Post, the same would adversely affect the compliance by the Contractor with its obligations under this Agreement; and (c) obtain the prior written permission of Australia Post (which may be granted or withheld in its absolute discretion) to provide or promote whether on its own account or in any other capacity services similar to the Services to or for any competitor of Australia Post during the Term. In this clause 34, “competitor” means any Person that competes with Australia Post including mere competition in peripheral products or services. 35 (g) accept from or perform for a Restricted Person any business of like or similar nature to Services. 35.3 The Contractor acknowledges that each of the prohibitions and restrictions in this clause 35: (a) must be read and construed and will have effect as a separate, severable and independent prohibition or restriction and will be enforceable accordingly; (b) is reasonable as to period, territorial limitation and subject matter; and (c) confers a benefit upon Australia Post, which is no more than that is reasonably required by Australia Post for the maintenance and protection of the goodwill of its business. Restraint 35.1 For the purposes of this clause 35: (a) “Effective Date” means the date of termination of this Agreement, whether by expiration of the Term or otherwise; (b) “Restricted Person” means any customer of Australia Post or any person who uses the Services provided by the Contractor pursuant to this Agreement. 35.2 For the sole purpose of protecting the business interests of Australia Post, the Contractor undertakes to Australia Post that it will not, and will ensure that each of its Directors and Personnel will not during the Term and for a period of: (a) six (6) months from the Effective Date; but if for any reason this period is unenforceable, then (b) three (3) months from the Effective Date; within the Delivery Area or any other area in which the Contractor has performed Services within six (6) months prior to the Effective Date, and whether: 35.4 If any prohibition or restriction (or any part of them) contained in this clause 35 is held or found to be void, invalid or otherwise unenforceable, it will be deemed to be severed to the extent that it is void or to the extent of voidability, invalidity or unenforceability and the remainder of the prohibitions or restrictions will remain in full force and effect. 36 Australia Post Identification 36.1 The Contractor must ensure that its Personnel carry and display such identification from time to time required and provided by Australia Post at all times when performing the Services and maintain such identification secure and in good order and condition and immediately report any loss or destruction to Australia Post. 36.2 Without limiting clause 36.1, for better confirming identification, the Contractor agrees that Australia Post may from time to time require: (a) the Contractor’s Personnel to wear work attire; and/or (c) on their own account; (b) Vehicles to display signage; (d) in partnership or jointly with or on behalf of any Person; which has been approved by Australia Post, and the Contractor will at its own cost acquire and ensure the same is at all times maintained in good order and condition and used only in performing the Services and as directed by Australia Post from time to time. (e) as beneficiary, trustee, principal, agent, member, shareholder, unit holder, joint venture participant, syndicate participant, financier, employee, consultant, director, manager or in any other capacity; Page | 23 AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement 37 Privacy of Personal Information authorised personnel have access to the Personal Information; 37.1 The Contractor acknowledges that Australia Post is bound by the provisions of the Privacy Act 1988 (Commonwealth) and the Privacy Act (Public Sector) Amendment Act 2001(Commonwealth) in relation to Personal Information collected or held by Australia Post. In relation to Personal Information held by the Contractor in connection with this Agreement, the Contractor must: (f) to immediately notify Australia Post if the Contractor becomes aware of a breach of any of clauses 37.1 and 37.2(a) to (e) (inclusive); (g) to notify Australia Post immediately of any complaint alleging an interference with the privacy of an individual by the Contractor or its Personnel; and (a) observe the provisions of the Privacy Act 1988 and the Australia Post Privacy Policy; (h) to co-operate with all reasonable requests or directions of Australia Post arising directly from, or in connection with, the exercise of the functions either by Australia Post or of the Privacy Commissioner under the Privacy Act 1988 or otherwise, including but not limited to: (b) not do anything which may result in Australia Post being in breach of any of Privacy Laws or its legal obligations; and (c) not do anything, which if done by Australia Post would constitute a breach of the Privacy Laws or the Australia Post Privacy Policy. (i) 37.2 Protection of Personal Information Without limiting clause 37.1, the Contractor agrees in respect of Personal Information held by it in connection with this Agreement: (a) to use Personal Information only for the purposes of fulfilling its obligations under this Agreement; (ii) the handling of any complaint alleging an interference with the privacy of an individual. 37.3 Contractor's Indemnity The Contractor agrees to indemnify and keep indemnified Australia Post against, and must pay Australia Post on demand the amount of, all losses, liabilities, costs (including legal costs) expenses and damages incurred or arising in connection with any breach of its obligations under this clause or any of its officers, employees, agents, advisers, auditors, consultants or third parties. This indemnity is a continuing obligation, independent from the other obligations of the Contractor under this Agreement and continues after this Agreement ends. It is not necessary for Australia Post to incur expense or make payment before enforcing this indemnity. (b) unless required by law, not to disclose Personal Information without the written authority of Australia Post except for the purpose of fulfilling its obligations under this Agreement. The Contractor must immediately notify Australia Post where it becomes aware that a disclosure of Personal Information may be required by law; (c) not to transfer Personal Information outside Australia, or allow parties outside Australia to have access to it, without the prior written approval of Australia Post; (d) to ensure that all Personnel requiring access to Personal Information: (i) undertake not to access, use, disclose or retain Personal Information except in the performance of their duties in connection with the Contractor's provision of Services under this Agreement; and (ii) are informed that failure to comply with this undertaking may lead the Contractor to take disciplinary action against that Personnel; (e) to ensure that Personal Information held in connection with this Agreement is protected against loss, and against unauthorised access, use, modification, disclosure or other misuse and that only Page | 24 the issuing of any guideline concerning the handling of Personal Information; and 38 Set Offs 38.1 Australia Post may deduct from moneys otherwise due or which may become due to the Contractor on any account whatsoever, any debt, charge or amount due (contingently or otherwise) or claimed to be due from the Contractor to Australia Post under this Agreement or otherwise or a bona fide estimate of any damages payable by the Contractor to Australia Post in connection with this Agreement or otherwise. For the avoidance of doubt, this means that: (a) where the Contractor performs services under other contracts with Australia Post, including but not limited to other mail contracts (“Other Contracts”) and has defaulted in its obligations under any Other Contracts, any amount owing to Australia Post under the Other Contract may be AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement deducted from the Contract Fee due to the Contractor under this Agreement; and (b) where the Contractor has defaulted in its obligations under this Agreement, any amounts owing by the Contractor to Australia Post in connection with this Agreement may be deducted from any fee payable by Australia Post to the Contractor under any Other Contract. 39 (including by expiry of the term) of this Agreement. 45 45.1 Any demand, notice, consent, approval or other communication under this Agreement must be: (a) in legible writing, in English, and addressed to the intended recipient; and (b) signed by the sender (if an individual) or by an authorised representative of the sender; and Costs and Expenses 39.1 The parties will pay their own costs and expenses arising out of the preparation, negotiation and execution of this Agreement. (c) given to the addressee by: (i) 39.2 The Contractor indemnifies and must keep indemnified, Australia Post in respect of all costs (including in the case of legal costs, costs on an indemnity basis) relating to any default by the Contractor under this Agreement, or failure to perform any obligations required by this Agreement to be performed on the part of the Contractor. 40 Notices (ii) post to, or leaving at, that party’s address for service; or (iii) sending by fax to the party’s address for service; and (d) is regarded as being given by the sender and received by the addressee: Severance (i) 40.1 If anything in this Agreement is unenforceable (illegal or void) then it is severed leaving the rest of this Agreement remaining in force. 41 Time of the Essence Entire Agreement 42.1 This Agreement constitutes the entire Agreement between the parties and will take effect according to its terms notwithstanding any prior agreement in conflict or variance with it or any correspondence or documents relating to its subject matter which may have passed between the parties before its execution. 43 43.2 Notwithstanding the requirements set out in clause 43.1 above Australia Post may from time to time propose variations to the Agreement and give notice to the Contractor with particulars of the proposed variations. If Australia Post does not receive a response within 90 days to the proposed variations the variations will be deemed to have been accepted by the Contractor and the variations will take effect upon expiration of the 90 days notice period. 44 (iii) if by fax, when legibly received by the addressee, with receipt being evidenced by a report generated by the sender’s machine confirming uninterrupted transmission; but if the delivery or receipt occurs on a day which is not a Business Day or at a time after 5.00pm (both the day and time being in the place of receipt) it is regarded as having been received at 9.00am on the next following Business Day. Variation and Waiver 43.1 An amendment or variation to this Agreement is not effective unless in writing and signed by both parties, subject to clause 43.2 below. A waiver is not effective unless it is in writing. Survival of Obligations 44.1 Clauses 7, 15, 19, 24, 27, 29, 35, 37 and this clause 44 survive determination for any reason Page | 25 if by delivery in person or by being left at the party’s address for service, upon delivery; (ii) if by post, two (2) Business Days from and including the date of posting by ordinary prepaid post in respect of an address for service within the Commonwealth of Australia and twenty one (21) Business Days in respect of other any address; or 41.1 Time is of the essence in this Agreement. 42 delivery in person (including in the case of the Contractor, to the Contractor’s Representative); or 45.2 For the purposes of this clause 45, a party’s address for service will be: (a) if paragraph (b) does not apply, the party’s postal address or fax number (if any) set out in the Reference Table; or (b) if that party has notified in writing the sender of a change of postal address or changed fax number, the address or fax number last so notified, and, if the party is a Corporation, will also include its registered office. 46 Governing Law 46.1 This Agreement shall be governed by and construed in accordance with laws in force in the State in which the Agreement is entered AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement and the parties submit to the non-exclusive jurisdiction of the Courts of that State. 47 No Merger 47.1 The rights and obligations of the parties will not merge on the assignment, termination or expiration of this Agreement but will survive and continue to have full force and effect. 48 Access to Documents 48.1 In this clause, ‘document’ and ‘Commonwealth contract’ have the same meaning as in the Freedom of Information Act 1982 (Cth). 48.2 The Contractor acknowledges that Agreement is a Commonwealth contract. this 48.3 Where Australia Post has received a request for access to a document created by, or in possession of, the Contractor or any subcontractor that relates to the performance of this Agreement (and not to the entry into the Agreement), Australia Post may at any time by written notice require the Contractor to provide the document to Australia Post and the Contractor must, at no additional cost to Australia Post, promptly comply with the notice. 48.4 The Contractor must include this in any subcontract relating to the performance of Services under this Agreement that will enable the Contractor to comply with its obligations under this clause 48. EXECUTED AS AN AGREEMENT [The rest of this page is left intentionally blank; next page is “Schedule of General Specifications”] Page | 26 AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement SCHEDULE OF GENERAL SPECIFICATIONS S1. Minimum Standards and KPIs and use best endeavours to deliver to; (iii) residential Delivery Points by 3 p.m., and The Performance Requirements are the minimum standards required by Australia Post in performance of Services by the Contractor. This Agreement provides serious consequences, including termination, for non-compliance. (iv) (d) deliver all Articles for delivery within the Delivery Area at the address specified to a box or receptacle for that purpose or as otherwise directed by Australia Post (and any failure to correctly so deliver shall be considered a “mis-delivery”); (e) maintain and keep current a list of the names and addressees in respect of each Delivery Point within the Delivery Area including any Customer List; (f) comply with any other delivery and/or pick-up arrangement as advised by Australia Post including electronic Data capture (and, for the purpose of this Schedule, an Article will not be considered delivered where the Contractor fails to obtain delivery confirmation and/or identifying information from an addressee where that confirmation or information is required in any medium either by the Customer or Australia Post); (g) where required to use Equipment for purposes of electronic Data capture, scan Articles for delivery prior to departing the Australia Post facility (and prior to 10am unless specifically in writing directed otherwise) and upload Data collected on completion of the day’s deliveries; (h) redirect and “card” Articles in accordance with advised procedures or as required from time to time by Australia Post; (i) where required, alight from any Vehicle for the purpose of effecting delivery; (j) where required by Australia Post, separate Articles addressed care of a Post Office or a Post Office Box from other Articles, and deliver those Articles to the relevant Post Office if within the Delivery Area on the day of delivery by the time directed by the Australia Post Manager; (k) where a charge is payable by the addressee on the delivery of an Article, not (unless otherwise directed Compliance with the Performance Requirements will be measured (non-exhaustively) by the following KPIs: Service Component KPI Timely delivery of Articles 100% delivery upon day of receipt Accurate delivery of Articles No more than one misdelivery per day 100% accuracy in daily uploads at the completion of performing the Services Accurate and timely Data uploads from scanning devices in accordance with Specifications Capturing full name and signature upon delivery of signature required Articles Customer complaints received (written or oral) 100% captured correctly No more than one (1) per month S2. Delivery of Articles In the delivery (including collection) of Articles, the Contractor must: (a) (b) (c) Page | 27 at all times comply with the Act, any regulations made under the Act, the APT&C, and all Relevant Laws and Relevant Standards as appropriate; on each day the Services are to be performed, sort all Articles into the Contractor’s delivery sequence prior to the commencement of delivery; deliver all Articles for delivery on the same day as received no earlier than; (i) 7a.m. on that day residential premises, and (ii) any such time on that day before businesses or other non-residential premises have opened for the day, to AUSTRALIA POST businesses and other nonresidential Delivery Points by 11 a.m. SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement by Australia Post) deliver the Article without first collecting that charge, and account for all such charges received from or on behalf of an addressee as required by Australia Post; (l) where the Agreement provides for a Service between a Post Office/Licensed Post Office and a railway station, airport or wharf, collect and deliver Articles at the railway station or railway van, airport or wharf as directed by Australia Post; (m) when required by Australia Post and for no extra charge: (i) (ii) (n) (o) Page | 28 Contractor will not be able to return each such undelivered Article as required by this paragraph then, as soon as practicable after the Contractor becomes aware of this, the Contractor must contact the Australia Post Manager (including outside business hours if required to comply with this paragraph) to implement arrangements directed by the Australia Post Manager for the return and/or safekeeping of each such undelivered Article. The Contractor agrees to return any such undelivered Article to an Australia Post office or deal with the Article as otherwise directed by the Australia Post Manager; deliver all telephone directories and no more than ten (10) different sets of unaddressed mail per week to Delivery Points within the Delivery Area. For the avoidance of doubt, a “set” of unaddressed mail can comprise of any number of Articles provided that each Article in the set is the same and does not include a name or specific address for delivery but is to be delivered to a particular Delivery Area; collect Articles from Delivery Points in a Delivery Area from any box or receptacle provided for that purpose or as otherwise directed by Australia Post; (iii) clear any Post-box located in the Delivery Area; and (iv) deliver the same day all Articles collected under paragraphs (ii) and (iii) to Australia Post; (p) comply with any reasonable direction and procedure as advised by Australia Post and in particular comply with all written specific Customer pick-up and delivery instructions unless specifically directed otherwise by the Australia Post Manager in any particular instance; (q) comply absolutely with and not deviate from all Performance Requirements without the written permission of Australia Post. S3. Security of and Dealing with Articles (a) before delivering an Article which requires a signature on delivery, obtain in respect of each such Article on the approved delivery sheet or electronic Data capture device any barcode details and signature and full name of the addressee as directed by Australia Post and provide such Data to Australia Post on the day of receipt; if, for whatever reason, it is unable to deliver an Article on the day of receipt then, before close of business on the day of receipt, return each such undelivered Article to the Australia Post Manager or otherwise as the Australia Post Manager directs. If the AUSTRALIA POST (b) The Contractor must ensure that all Articles are safely carried and must protect all Articles from weather, dust, damage, loss or theft. In particular, if consignments are carried: (i) in a motor Vehicle (other than a motorcycle), the Contractor must ensure that the Vehicle is fully enclosed and securely lockable and locked when the Vehicle is unattended; and if (ii) by motorcycle or bicycle, the Contractor must ensure that the motorcycle or bicycle is equipped with a secure weatherproof container and wherever practicable, ensure that the motorcycle or bicycle is not left unattended or out of the Contractor’s sight. The Contractor must examine all Articles being carried and if it appears that any seal, fastening or bag has SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement been tampered with, the Contractor must inform Australia Post of this immediately. S4. Times for Performing Services The Contractor acknowledges that Services may be required to be provided (without further cost to Australia Post in addition to the Contract Fee) as from time to time directed by Australia Post including: (a) (b) (c) (save only to the extent otherwise specifically directed by the Australia Post Manager in any particular instance) to ensure consistent and seamless performance of the Services. S7. Communication with Customers For the purposes of ensuring that Australia Post can communicate effectively and in a timely manner with its Customers, the Contractor must immediately inform the Australia Post Manager of: during peak periods (for example in December and prior to Mother’s Day in each year): (i) 7 days per week; and (ii) 24 hours per day; on public or otherwise gazetted holidays or, if a public holiday is taken by the Contractor with the approval or direction of the Australia Post Manager, on the next following Business Day even if not a specified working day under the relevant Specification applying to the Contractor; on the Australia Post Authorised Holiday (being the day nominated by Australia Post each year on which its employees are granted an additional day of holiday leave). (a) any delays in performing Services; or (b) any Vehicle breakdown; or (c) heavy loads, extra bags or extra pickup or Delivery Points; or (d) any problems at pickup or Delivery Points; or (e) any changes to any Services requested by any Customer; or (f) any changes made by a Customer in its procedures including changes in Customer representatives dealing with the Contractor; or (g) any other relevant matters. S8. Personnel The Contractor must ensure that all Personnel: (a) are experienced, prompt, efficient, professional, courteous and helpful in all dealings with Customers, members of the public, Australia Post employees, licensees, agents and other Australia Post contractors; (b) provide the Services within the time frame agreed with the Customer by Australia Post and work the hours required to meet the Performance Requirements; (c) carry and be contactable by communication equipment at all times while performing Services; (d) do not engage in any unlawful discrimination against or harassment of any Person; (e) are always neat, tidy and appropriately attired (in approved work attire if so required by Australia Post) and maintain a high standard of personal hygiene and presentation generally consistent with and appropriate to the professional standard of service expected by Customers; S5. Material Handling Aids Tools of Trade will include any material handling equipment (such as hand trolleys, lifting aids [eg. plastic tubs], etc) reasonably required or directed by the Australia Post Manager for the purpose of assisting the Contractor’s Personnel in providing the Services in accordance with all applicable Work Health and Safety requirements. Prior to the Contractor’s Personnel using any items of material handling equipment on Australia Post’s premises, the Contractor must have each item checked and approved by the Australia Post Manager or its delegate to ensure that it meets operational requirements. The Contractor is fully responsible for ensuring that all Tools of Trade are safe, fit for purpose and adequately maintained. S6. Customer Instructions The Contractor must note specific pick up and delivery instructions (eg enter via side entrance) and ensure that all such instructions are incorporated into the Contractor’s system and followed implicitly Page | 29 AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement (f) (g) display any identification provided by Australia Post which must be visible at all times while the Personnel is on site or providing the Services; wear security passes in Australia Post premises where Australia Post requires the passes to be worn; (h) do not engage in any conduct which would result in a lack of ability or suitability to provide the Services and/or adversely affect the goodwill and/or reputation of Australia Post; (i) accurately and promptly complete all paperwork required in respect of the Services; and (j) without cost to Australia Post, attend when requested, briefing sessions and “safety talks” conducted by or on behalf of Australia Post and participate in any emergency evacuation drills or similar procedures. S10. Vehicles The Contractor warrants that, unless otherwise agreed in writing by Australia Post, all Vehicles will: S9. Training (a) (b) The Contractor will provide, at its cost, all necessary training for all Personnel to ensure that the Services are performed in accordance with the Performance Requirements and best industry practice. Without limiting the requirements of paragraph (a) the Contractor will be responsible for conducting or arranging training sessions at its own cost prior to the commencement of new Personnel in the provision of Services and as further required during the Term to take account of any variations in Performance Requirements or otherwise, and must ensure such training includes: (i) Page | 30 an overview of this Agreement and the Contractor's obligations in respect of Services under this Agreement including Customer service requirements; (ii) the details of the engagement or arrangement between the Contractor and such Personnel; (iii) for any Personnel who drive Vehicles, general driver induction; and (iv) the Australia Post contractor induction program. AUSTRALIA POST (a) be presented to the Australia Post Manager for inspection to determine that the vehicle is compliant with the terms of this clause S10 prior to being used in the performance of the Services. Where the Contractor intends replacing or changing the Vehicles in its fleet, the proposed new Vehicle/s must first be approved by Australia Post prior to the Contractor procuring them; (b) be not more than five years old at the Commencement Date unless otherwise specified in the Specifications and is capable of being secured; (c) be of sufficient capacity otherwise suitable for performance of the Services; (d) be locked at all times performance of Services unattended; (e) be equipped with a mobile telephone or other approved communication device, which must be on at all times while the Services are being performed; (f) be in a safe and good condition, clean (both outside and inside if appropriate) and free of dents, damage, rust and signage or marks reasonably deemed by the Australia Post Manager to be offensive or inappropriate or damaging to the Goodwill or the image or reputation of Australia Post; (g) receive immediate professional repair of any damage sustained as soon as possible thereafter or a replacement Vehicle used; (h) comply with the Relevant Laws, Relevant Standards and the requirements of all Authorities, including all special registration and Vehicle identification requirements; and, in respect of Vehicles that are not motor cycles, will: (i) and the during when be equipped with a trolley and an operative fire extinguisher (if a fire extinguisher is specified as being required in the Mail Service Specifications of the tender documentation provided to the Contractor by SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement Australia Post prior to entry into this Agreement) of at least 1.5kg DCP capacity or other size as specified in the Mail Service Specifications and complying with Relevant Standards and Relevant Laws; (i) display such signage (if any) as required by clause 36.2(b); and (j) be white in colour, unless specifically agreed otherwise in writing by the Australia Post Manager. not display any other signage or advertising, unless specifically agreed otherwise in writing by Australia Post. (k) will be performed) and a Contingency Plan (demonstrating how the Contractor will deal with disruptions that may occur to its “normal” daily arrangements). Each such plan must be in writing and address as a minimum the following issues respectively: (a) S11. Reporting (a) (b) (c) The Contractor will provide to Australia Post Data and other information regarding performance of the Services on a daily basis in a medium and form and in such detail as Australia Post may from time to time require in order for Australia Post to correctly invoice its Customers. The Contractor must advise Australia Post immediately of any noncompliance with any Performance Requirements including any time requirements attaching to any particular task or tasks. The Contractor must provide a written summary of each incident of noncompliance within 24 hours of occurrence. The Contractor must make available its Contractor’s Representative to meet with Australia Post at least monthly (or such other interval as Australia Post may reasonably require) to review the Contractor's performance of the Services and the Contractor’s compliance with the WH&S Management Plan. S12. Operational and Contingency Plans In order to demonstrate that the Contractor will be able to satisfactorily perform its obligations under the Agreement throughout the Term, the Contractor must, prior to commencing performing Services under this Agreement, and again as often as required to accommodate any changed circumstances, provide to Australia Post, an Operational Plan (demonstrating how the Services Page | 31 AUSTRALIA POST (b) The Operational Plan must set out: (i) the number and nature of the runs or rounds necessary in performance of the Services; (ii) the number of Contractor’s Personnel and hours proposed to be engaged in performance of the Services; (iii) whether the Contractor’s Personnel will be/are engaged as employees or subcontractors; (iv) the estimated commencement and finishing times for all Contractor’s Personnel for each shift; and (v) The number and type of Vehicles to be used in performance of the Services. The Contingency Plan must set out: (i) the arrangements that will be in place to deal with any temporary inability of Contractor’s Personnel to perform the Services whether due to illness, incapacity or any other reason; (ii) the arrangements that will be in place to accommodate unavailable Vehicles, Equipment or Tools of Trade due to breakdown or maintenance of any Vehicles, Equipment or Tools of Trade; (iii) the arrangements that will be in place to accommodate periods of increased demand for Services during peak periods; (iv) how relevant WH&S information and training will be provided to those Personnel the Contractor may engage to perform the Services during any contingency period. SAMPLE CONTRACT VERSION 1 2013 Mail Contractor Agreement S13. Supplier Code of Conduct that builds good relations and achieves a positive impact. For the purposes of this schedule S.13 the term ‘Supplier’ shall have the same meaning as ‘Contractor’. Impact on Environment Code of Conduct Suppliers are expected to: Australia Post takes care in selecting suppliers of goods and services and expects them to operate to recognised national and/or international standards and appropriate codes of practice. While our suppliers are independent entities, their business practises and actions may impact upon Australia Post’s reputation. For this reason our suppliers are expected to work to the following ethical, social and environmental standards of conduct: • have an environmental management plan which takes responsibility for goods and services throughout their lifecycle and minimises the impact of activities on the environment. Suppliers are expected to: Suppliers are expected to: comply with all local and national laws and regulations on bribery, corruption and prohibited business practises, • conduct business in an ethical, fair and courteous manner, • be able to report on social, ethical and environmental performance, • promote timely and balanced disclosure of material matters concerning the goods or services provided by the company to Australia Post, • • conduct their business operations in a way that protects and sustains the environment, Risk Management Corporate Governance and Ethical Business Practices • • comply with all relevant local and national laws and regulations relating to the environment, adhere to acceptable business practises with their own suppliers, including providing for timely payment and reasonable contractual conditions. • have a risk management framework which incorporates social, ethical and environmental risks into their risk management processes, • have a business continuity plan to minimise business impacts in the event of major disruption including an emergency response plan to minimise harm to employees, the local community and environment in the event of a site disaster __________________________________________ ____ [The rest of this page is left intentionally blank;] END OF DOCUMENT. Management Practices which Respect the Rights of Employees and Local Community Suppliers are expected to: • demonstrate a commitment to human rights and fair employment practises in accordance with existing international standards such as the UN Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights, the ILO Declaration on Fundamental Rights at Work, and the UN Convention on the Rights of the Child, • provide a safe and healthy workplace for all employees, • provide a workplace that is free of discrimination, harassment or bullying, • show responsibility to the local communities in which they operate by conducting business in a way Page | 32 AUSTRALIA POST SAMPLE CONTRACT VERSION 1 2013
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