Document:

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                                                                   Exhibit 10.36

                             DATED NOVEMBER 12, 2004

                          NINETOWNS DIGITAL WORLD TRADE
                                HOLDINGS LIMITED

                                       AND

                                  JOHN YAN WANG

                                -----------------

                                SERVICE AGREEMENT

                                -----------------

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AN AGREEMENT made on November 12, 2004

BETWEEN

(1)  NINETOWNS DIGITAL WORLD TRADE HOLDINGS LIMITED, a company established under
     the laws of the Cayman Islands with limited liability and having its
     registered office at Century Yard, Cricket Square, Hutchins Drive, P.O. Box
     2681 GT, George Town, Grand Cayman, British West Indies, and registered as
     an overseas company in Hong Kong having its principal place of business in
     Hong Kong at Units 2502-3 Worldwide House, 19 Des Voeux Road Central, Hong
     Kong ("COMPANY"); and

(2)  JOHN YAN WANG ("EMPLOYEE").

IT IS AGREED as follows:

1.   INTERPRETATION

1.1  In this Agreement the following expressions shall have the following
     meanings, except where the context otherwise requires:

<TABLE>
<S>                            <C>
     "ASSOCIATED COMPANY"      means any company which is:

                               (a)  a company having an ordinary share capital
                                    of which not less than twenty percent (20%)
                                    is owned directly or indirectly by the
                                    Company;

                               (b)  a holding company of the Company or a
                                    subsidiary of any such holding company; or

                               (c)  a company to which the Company or any of its
                                    subsidiaries (as defined in the Companies
                                    Ordinance, Cap.32) renders managerial,
                                    administrative or technical services in the
                                    ordinary course of its business;

     "BOARD OF DIRECTORS"           means the directors for the time being of
                                    the Company including any duly appointed
                                    committee of such directors;

     "CALENDAR YEAR"                means each period commencing on 1 January
                                    and ending on 31 December, inclusive;

     "CONFIDENTIAL                  means:
     INFORMATION"
                               (a)  trade secrets or other confidential
                                    information of the Company, including in
                                    particular lists or details of customers and
                                    clients of the Company or any Associated
                                    Company and/or

                               (b)  the proprietary information (including any
                                    Intellectual Property and/or Information
                                    Technology owned or licensed by a Group
                                    Company), observations and data obtained by
                                    the Employee whilst employed by the Company
                                    concerning the organization, business,
                                    technology, finance, transactions or affairs
                                    of the Company or any Associated Company;

     "FINANCIAL YEAR"               means any year or other period for which
                                    accounts of the Company are made up and
                                    audited;

     "GROUP"                        means the Company and all its Associated
                                    Companies;
</TABLE>

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<TABLE>
<S>                            <C>
     "GROUP COMPANY"                means any company within the Group,
                                    including the Company;

     "HONG KONG"                    means the Hong Kong Special Administrative
                                    Region of the People's Republic of China;

     "INFORMATION                   means computer hardware, software, networks
     TECHNOLOGY"                    and/or other information technology and any
                                    aspect or asset of a business which relies
                                    on computer hardware, software, networks
                                    and/or other information technology
                                    (including, without limitation, development,
                                    security, disaster recovery, EDI, source
                                    code escrow, computer bureau services,
                                    maintenance and support, facilities
                                    management, website, domain name and
                                    outsourcing agreements) whether embedded or
                                    otherwise;

     "INTELLECTUAL PROPERTY"        means trade marks, service marks, trade or
                                    business names or signs, logos, get-up,
                                    patents, inventions, registered and
                                    unregistered design rights, copyrights
                                    (including rights in computer software),
                                    semi-conductor topography rights, database
                                    rights and all similar proprietary rights
                                    which may subsist in any part of the world
                                    (including know-how) including, where such
                                    rights are obtained or enhanced by
                                    registration, any registration of such
                                    rights and applications and rights to apply
                                    for such registrations;

     "INVENTION"                    means any discovery, technique, design,
                                    formula, method of manufacture, invention,
                                    secret process or improvement in procedure,
                                    whether patentable or not;

     "PRC"                          means the People's Republic of China;

     "TERM"                         means such period as will expire on the
                                    earlier of either:

                                    (a)  four years from the date when this
                                         Agreement commences; or

                                    (b)  such date where the Agreement is
                                         lawfully and validly terminated under
                                         the terms of this Agreement.
</TABLE>

1.2  References to Clauses are references to clauses or sub-clauses of this
     Agreement.

1.3  Headings are for ease of reference only and do not form part of this
     Agreement.

1.4  References to (or to any specific provision of) this Agreement or any other
     document shall be construed as references to this Agreement, that provision
     or that other document as amended, varied, modified or supplemented from
     time to time.

1.5  Reference to a Schedule is to a schedule of this Agreement unless otherwise
     stated. Schedules form part of this Agreement.

1.6  Reference to the neuter gender shall include the masculine and feminine and
     vice versa, and references to the singular number shall include the plural
     and vice versa.

2.   APPOINTMENT

2.1  This contract supersedes the previous service contract entered into between
     the Group and the Employee.

2.2  The Company hereby agrees to employ the Employee, and the Employee hereby
     agrees to act, as the Senior Vice President of the Company or in such other
     office or offices as the Company may from time to time direct in accordance
     with the terms and conditions hereof.

2.3  The Employee accepts that the Company may, at its discretion, require him
     to perform other

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     duties or tasks not within the scope of his normal duties hereunder and the
     Employee shall perform those duties and/or undertake those tasks as if they
     were specifically required under this Agreement.

3.   TERM

     The Term shall commence on the date hereof and shall continue until the
     expiry of the Term or until earlier terminated by either party giving to
     the other written notice in accordance with CLAUSE 10.

4.   DUTIES

4.1  The Employee shall, during the Term:

     4.5.1  responsible for the research and development of the Company's
            products;

     4.5.2  devote the whole of his time, attention and skill to the duties of
            his office;

     4.5.3  faithfully and diligently perform such duties and exercise such
            powers as may from time to time be assigned to or vested in him;

     4.5.4  obey all reasonable and lawful instructions and directions given to
            him by or under the authority of the Board of Directors;

     4.5.5  act at all times in a civil manner and shall be punctual, sober,
            conscientious and loyal in carrying out his duties; and

     4.5.6  generally, do all things possible to promote, develop and extend the
            business and interests of the Company and its Associated Companies
            and the Group.

4.2  The Employee may be required in pursuance of his duties hereunder to
     perform services not only for the Company but also for any of its
     Associated Companies and without further remuneration (except as otherwise
     agreed) to accept such offices in such of its Associated Companies as the
     Company may from time to time reasonably require.

4.3  The Employee hereby agrees that the Company shall be entitled from time to
     time, without any further consent from the Employee, to second the Employee
     to the employment of any Associated Company of the Company without
     prejudice to the rights of the Employee under this Agreement and that the
     Company shall be at liberty from time to time to appoint any other person
     or persons to act jointly with the Employee whether in such secondment or
     in his normal duties hereunder or otherwise.

4.4  The Employee shall not during the Term (except as a representative of the
     Company or with the prior consent in writing of the Board of Directors):

     4.4.1  be directly or indirectly engaged or concerned in the conduct of any
            business, whether or not such business is competing in any material
            respect with the business for the time being of the Company or of
            any of its Associated Companies; or

     4.4.2  be directly or indirectly interested in any such business save
            through his holding or being interested in investments (quoted or
            unquoted) representing not more than five percent (5%) of the issued
            investments of any class of any one such company.

4.5  The Employee shall not and shall not permit any member of his family to,
     demand, receive or obtain directly or indirectly:

     4.5.1  any discount, rebate or commission in respect of any sale and
            purchase of goods effected or other business transacted (whether or
            not by him) by or on behalf of any Group Companies; or

     4.5.2  from any third party, any gifts, benefits or advantages offered or
            given to the Employee or any member of his family, as the case may
            be, by reason of his employment with the Company,

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           and if he or a member of his family (or any firm or company in which
           he or a member of his family is interested) obtains any such
           discount, rebate commission, gift, benefit or advantage, the Employee
           shall (in addition to the other rights of the Company hereunder in
           respect thereof) account to the Company for the amount or value
           received.

5.   CONFIDENTIALITY

5.1  The Employee acknowledges that:

     5.1.1  he has been advised by the Company that it would not have entered
            into this Agreement unless assured of the confidentiality covenants
            contained in this CLAUSE 5 which, the Employee acknowledges, are
            essential to protect the business and goodwill of the Company; and

     5.1.2  the Confidential Information is the property of the Company or such
            Associated Company.

5.2  The Employee agrees that he shall not disclose, divulge or communicate to
     any unauthorized person or use for his own account, or through any failure
     to exercise all due care and diligence cause any unauthorised disclosure
     of, any Confidential Information unless and to the extent that the Employee
     may, after giving prior notice to the Company to the extent practicable
     under the circumstances and subject to any practicable arrangements to
     protect confidentiality, disclose such matters to the extent required by
     applicable laws or governmental regulations or judicial or regulatory
     process or in connection with any judicial process or arbitration regarding
     any legal action, suit or proceeding arising out of or relating to this
     Agreement or the business of the Company or any Associated Company.

5.3  The provisions of this CLAUSE 5 shall apply mutatis mutandis in relation to
     each of the Associated Companies, to trade secrets or confidential
     information which the Employee may have received or obtained while in the
     service of the Company, and the Employee shall further, upon the request of
     any such company, enter into a separate agreement or undertaking with such
     Associated Company to the like effect.

5.4  The Employee acknowledges that the terms of this Agreement (and any
     amendments or variations thereof) are confidential in nature and agrees
     that he shall not disclose or use the terms of this Agreement or any part
     thereof for any purpose which may adversely affect the business of the
     Company.

6.   REMUNERATION

6.1  The Company shall pay to the Employee during the continuance of his
     employment hereunder a salary at the rate specified in SCHEDULE 1 (or such
     higher rate as may, from time to time, be agreed in accordance with CLAUSE
     15.7). In the event of any increase of basic salary being so agreed or
     notified, the increase shall thereafter have effect as if it were
     specifically provided for as a term of this Agreement. Such basic salary
     shall be inclusive of all sums receivable by the Employee from the Company
     or any of its Associated Companies, excluding benefits outlined in CLAUSE
     6.2. The basic salary shall be payable in arrears on the last working day
     of each month.

6.2  The Employee shall also be entitled to the benefits set out in SCHEDULE 2,
     which may, from time to time, be varied in accordance with CLAUSE 15.7.

6.3  The Employee's total compensation (as set out in CLAUSE 6.1 and CLAUSE 6.2)
     may be reviewed by the Board of Directors at the end of each financial
     year. Any change of the Employee's compensation shall, from time to time,
     be agreed in accordance with CLAUSE 15.7.

6.4  So far as is permitted by law, the Company shall be entitled at any time to
     deduct from the Employee's remuneration hereunder any monies due from him
     to the Company including, but not limited to, any outstanding loans,
     advances, the cost of repairing any damage to or loss of the Company's
     property caused by him (and of recovering the same) and any other monies

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     owed by him to the Company.

6.5  The Company shall, against production of receipts and vouchers if
     requested, reimburse the Employee all necessary and reasonable expenses
     (including travel, hotel, entertainment and other out-of-pocket expenses):

     6.5.1  up to but not exceeding HK$1,000 (or equivalent if in foreign
            currency); or

     6.5.2  exceeding HK$1,000 (or equivalent if in foreign currency), incurred
            with the Company's prior consent if such expenses,

     properly incurred in the performance of his duties pursuant to this
     Agreement.

6.6  For the avoidance of doubt, the Employee shall be solely responsible for
     the due and prompt payment of all taxes that he may be held liable in Hong
     Kong or elsewhere, non-exclusively including, but not limited to, salaries
     tax based on his income under this Agreement.

7.   PLACE OF WORK

     The Employee shall perform his duties at the office of the Company in Hong
     Kong, or such other place of business of the Company as the Company may, in
     its absolute discretion, from time to time, require the Employee to work.

8.   WORKING HOURS AND HOLIDAYS

8.1  The Employee shall personally attend to the business and interests of the
     Company during the normal working hours of the Company as determined by the
     Company from time to time, and during such other times as the Company may
     reasonably require for the Employee to carry out his duties faithfully and
     diligently except in case of incapacity through illness or accident.

8.2  The Employee shall be entitled to annual leave as specified in SCHEDULE 3
     in each Calendar Year ("ANNUAL LEAVE"). Annual Leave will be allowed and
     shall be taken in accordance with the provisions hereof following written
     requests therefor by the Employee.

8.3  The Employee shall abide by such rules and policies as the Company may,
     from time to time, implement and notify to the Employee in regards to the
     Employee's attendance at the office of the Company during periods of
     extreme weather conditions in Hong Kong, including the hoisting of
     rainstorm and typhoon warnings by the Hong Kong Observatory.

9.   INVENTIONS

9.1  The Employee acknowledges that the nature of his duties, and the particular
     responsibilities arising therefrom, are such that he has a special
     obligation within the meaning of S57 of the Patents Ordinance, Cap 514 to
     further the interest of the Company's undertakings. Accordingly, any
     Invention made or discovered by the Employee or jointly with others, wholly
     or substantially in the course of the Employee's normal duties or of duties
     specifically assigned to the Employee, or in the course of duties falling
     outside his normal duties, but specifically assigned to the Employee, must
     immediately be disclosed to the Company and all rights in such Inventions
     shall be and become the absolute property of the Company and shall not be
     disclosed to any other person or entity without the consent of the Company
     being previously obtained, which, if given, may be subject to conditions.

9.2  The Employee shall whenever requested to do so (whether during or after the
     termination of this Agreement) promptly disclose and deliver to the Company
     all information and data in the Employee's possession, necessary to enable
     the Company to have a full understanding of the Invention. The Employee
     agrees to execute all documents and to do all things that may, in the
     opinion of the Company, be necessary to enable the Company or its nominees
     to obtain patent, design, or other intellectual property protection of the
     Invention in Hong Kong or any other part of the world. The Employee also
     agrees to vest such patent, design or other intellectual property
     protection, when obtained, and all right and title to and interest in the

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      same in the Company or its nominees absolutely and as sole beneficial
      owner.

9.3   The Employee hereby irrevocably appoints the Company to be the Employee's
      attorney in his name and on his behalf to execute and do any such acts,
      matters, documents or things as mentioned above and generally to use his
      name for the purpose of giving to the Company (or its nominees) the full
      benefit of the provisions of this CLAUSE 9, in favour of any third party.
      A certificate in writing signed by the Employee or the Company that any
      instrument or act falls within the authority conferred upon the Company by
      this CLAUSE 9.3 shall be conclusive evidence that such is the case.

9.4   The Company shall be under no obligation to apply for or to seek to obtain
      patent, design or other intellectual property protection in relation to
      any such Invention or in any way to use, exploit or seek to benefit from
      such Inventions.

9.5   The provisions of this CLAUSE 9 shall not be read or construed as
      purporting to exclude or limit the operation of S60 of the Patents
      Ordinance, Cap 514 (as the same may be amended from time to time).

9.6   The Employee agrees to give the Company not less than thirty (30) days'
      prior notice in writing of any application proposed to be made by the
      Employee or on the Employee's behalf pursuant to S58 of the Patents
      Ordinance, Cap 514 (as the same may be amended from time to time) for
      compensation in respect of any such Invention for which a patent has been
      granted.

9.8   The copyright and all rights in the nature of copyright to any work
      created by the Employee during his employment, including but not limited
      to written works, computer programs, designs, trade marks (whether or not
      in conjunction with another party) in connection with, affecting or
      otherwise related to the business of the Company or an Associated Company
      shall belong to the Company, which shall among other things have the full
      right to use, transfer and/or alter any such work. The Employee waives his
      right, or agrees not to enforce, any moral or other intellectual property
      rights which the Employee may have in such works. The Employee will not
      infringe any rights in such works and will notify the Company immediately
      of any circumstances where such rights may have been infringed.

9.9   Any trade mark, design or copyright to works created by the Employee
      during his employment (and whether or not in conjunction with a third
      party) in connection with, affecting or relating to the business of the
      Company or Associated Companies or capable of being used or adapted for
      use in the Company or Associated Companies, must immediately be disclosed
      to the Company.

9.10  The Employee further agrees to waive any right to compensation in respect
      of any such work which is exploited by the Company or by someone else with
      the Company's permission in a way that could not reasonably have been
      contemplated by the Company and the Employee at the time of making the
      work.

9.11  The Employee agrees that he will, at the Company's expense and upon
      request (whether during or after the termination of the employment)
      execute such documents as may be necessary to implement the provisions of
      this CLAUSE 9 and vest all rights, title and interest in such property in
      the Company.

9.12  The Employee shall not, except as provided in this CLAUSE 9 or as may be
      necessary in the course of his employment, disclose or make use of any
      Invention which is the property of the Company.

9.13  Rights and obligations under this CLAUSE 9 shall continue in force after
      the termination of the Agreement in respect of Inventions made during the
      Employee's employment hereunder and shall be binding upon the
      representatives of the Employee.

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10.   TERMINATION

10.1  The employment of the Employee under this Agreement may be terminated only
      by the Company summarily and without notice (or payment in lieu of notice)
      if the Employee:

      10.1.1  is guilty of gross negligence or wilful misconduct in relation to
              her employment with the Company;

      10.1.2  is guilty of any grave misconduct which in the opinion of the
              Company is detrimental to the interests or reputation of the
              Company;

      10.1.3  is convicted of any criminal offence involving her integrity or
              honesty,

      10.1.4  becomes an undischarged bankrupt; or

      10.1.5  refuses to carry out any decision of the Board or any reasonable
              and lawful order given to him by the Board of Directors in the
              course of his appointment or fails diligently to attend to his
              duties

      and will automatically terminate in the event of the death of the
      Employee, in which event the employment of the Employee and all salary,
      benefits, allowances, commissions and entitlements payable under this
      Agreement, or otherwise, shall cease from the date of termination or
      payment in lieu of notice as applicable.

10.2  If the employment of the Employee is terminated pursuant to CLAUSE 10.1,
      the Company shall not be liable to pay to the Employee any salary,
      benefits, allowances, commissions and entitlements in respect of any
      period after the date of termination.

10.3  Notwithstanding how the employment of the Employee is terminated the
      Company shall not be liable to pay to the Employee any compensation or
      similar payment in respect of such termination.

11.   EFFECTS OF TERMINATION

11.1  On the termination of this Agreement, howsoever arising, the Employee
      shall:

      11.1.1  deliver to the Company all documents (including Confidential
              Information, correspondence, notes, memoranda, plans, drawings,
              records, reports, computer disks, software and other documents and
              data of whatsoever nature) made or compiled by or delivered to the
              Employee during his employment hereunder and concerning the
              business, finances or affairs of any Group Company. For the
              avoidance of doubt it is hereby declared that the property in all
              such documents as aforesaid shall at all times belong in the
              Company; and

      11.1.2  at the Company's request, and without compensation or other
              payment, resign from all appointments or offices which he holds as
              nominee or representative of the Company and if he should fail to
              do so within seven days of such request the Company is irrevocably
              authorised to appoint some person in his name and on his behalf to
              sign any documents or do any things necessary or requisite to give
              effect to such resignation(s). Such resignation(s) shall be
              without prejudice to any claims which the Employee may have
              against the Company arising out of this Agreement or its
              termination.

11.2  This CLAUSE 11 shall survive the termination of this Agreement howsoever
      arising.

12.   NON-SOLICITATION

12.1  The Employee covenants with the Company that he will not for the period of
      12 months after ceasing to be employed under this Agreement in connection
      with the carrying on of any business in competition with the business of
      the Company then being carried on, either on his own behalf or on behalf
      of any person firm or company directly or indirectly:

      12.1.1  seek to procure orders from or do business with any person firm or
              company who has

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              at any time done business with the Company or any of the
              Associated Companies during the 12 months immediately preceding
              the date the Employee ceased employment with the Company; or

      12.1.2  endeavour to entice away from the Company any person who has at
              any time been employed or engaged by the Company any of the
              Associated Companies during the 12 months immediately preceding
              the date the Employee ceased employment with the Company, provided
              that nothing in this CLAUSE 12 shall prohibit the seeking or
              procuring of orders or the doing of business not relating or
              similar to the business of the Company then being carried on.

13.   NON-COMPETITION

13.1  The Employee covenants with the Company that he will not within the PRC
      (which shall include Hong Kong and the Macao SAR) and Taiwan, Republic of
      China and for the period of 12 months after ceasing to be employed under
      this Agreement either alone or jointly with or as manager agent consultant
      or employee of any person firm or company directly or indirectly carry on
      or be engaged in any activity or business which shall be in competition
      with the Business.

14.   NOTICES

14.1  Any notice to be given by a party under this Agreement must be in writing
      and must be given by delivery at or sending registered post or other
      faster postal service, or facsimile transmission or other means of
      telecommunication in permanent written form (provided the addressee has
      his or its own facilities for receiving such transmissions) to (in the
      case of the Company) its registered office for the time being and (in the
      case of the Employee) his last known address or relevant
      telecommunications number of the other party.

14.2  Where notice is given by sending in a prescribed manner it shall be deemed
      to have been received when, in the ordinary course of the means of
      transmission, it would be received by the addressee. To prove the giving
      of a notice it shall be sufficient to show it was dispatched. A notice
      shall have effect from the sooner of its actual or deemed receipt by the
      addressee.

15.   GENERAL

15.1  This Agreement is in substitution for all previous contracts of service
      between the Company and the Employee which shall be deemed to have been
      terminated by mutual consent as from the date on which this Agreement
      commences.

15.2  This Agreement constitutes the entire agreement amongst the parties hereto
      and supersedes any previous agreements or arrangements (written or oral)
      between them relating to the subject matter hereof. Each of the parties
      hereto acknowledges that it is not relying on any statements, warranties
      or representations given or made by the other party relating to the
      subject matter hereof, save as expressly set out in this Agreement.

15.3  No failure or delay by any party in exercising any right, power or remedy
      under this Agreement shall operate as a waiver thereof, nor shall any
      single or partial exercise of the same preclude any further exercise
      thereof or the exercise of any other right, power or remedy. Without
      limiting the foregoing, no waiver by any party of any breach of any
      provision hereof shall be deemed to be a waiver of any subsequent breach
      of that or any other provision hereof. If at any time any provision of
      this Agreement is or becomes illegal, invalid or unenforceable in any
      respect, the legality, validity and enforceability of the remaining
      provisions of this Agreement shall not be affected or impaired thereby.
      The rights and remedies provided in this Agreement are cumulative and not
      exclusive of any rights or remedies otherwise provided by law.

15.4  If any provision or part of a provision of this Agreement shall be, or be
      found by any authority or court of competent jurisdiction to be, illegal,
      invalid or unenforceable, such

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      illegality, invalidity or unenforceability shall not affect the other
      provisions or parts of such provisions of this Agreement, all of which
      shall remain in full force and effect.

15.5  While CLAUSE 12 and CLAUSE 13 are considered by the parties to be
      reasonable in all the circumstances, it is agreed that if such clauses as
      a whole are adjudged to go beyond what is reasonable for the protection of
      the confidential information and other legitimate investment interests of
      the Company or any Associated Company, and to be unenforceable, but would
      be adjudged reasonable if any part or parts thereof were deleted, such
      clauses shall apply as if such unreasonable part or parts had been
      deleted.

15.6  The parties agree that a construction of this Agreement that results in
      all provisions being enforceable is to be preferred to a construction that
      does not so result.

15.7  This Agreement may not be modified or varied except by an instrument in
      writing signed by both of the parties hereto or their duly authorized
      representative.

15.8  This Agreement shall be governed by and construed in accordance with the
      laws of Hong Kong. The parties irrevocably agree that the courts of Hong
      Kong have non-exclusive jurisdiction to settle any dispute or claim that
      arises out of or in connection with this Agreement.

                                   SCHEDULE 1

Basic Salary: RMB 360,000 per annum

                                   SCHEDULE 2

Discretionary Bonus

The Employee shall be eligible to receive a discretionary annual bonus. Payment
of such bonus and the amount (if any) thereof shall be at the entire discretion
of the Company determined by them using such criteria as they consider
appropriate, including, but not limited to, whether the Company has made audited
profits after tax and minority interest but before extraordinary items of over
HK$100 million, the performance of the Group and of the Employee during the
period in question, provided always that such bonus (if any) shall not exceed 1%
of such profits.

Retirement Scheme

The Employee shall have the benefit of participation in the mandatory provident
fund scheme provided by the Company subject to the terms and conditions of such
scheme from time to time in force, and the mandatory payments by the Company
shall not exceed the statutory minimum.

                                   SCHEDULE 3

                                  ANNUAL LEAVE

In addition to statutory holidays, the Employee shall be entitled after
completion of each year of service to 14 working days (including Saturdays) of
Annual Leave, which Annual Leave shall be taken at such time or times as may be
convenient to the Company having regard to the exigencies of the Company's
business, provided that:

1.   if the employment of the Employee hereunder is to cease on the completion
     of any year of service, the Employee shall be entitled to take the Annual
     Leave immediately prior to the end of such year of service, notwithstanding
     that at that time such year of service shall not have been completed;

2.   if the Employee has taken more Annual Leave during the final year of
     employment than has accrued by the termination of this Agreement, the
     Employees hereby consents to the Company deducting from his final salary
     payment an amount equivalent to such excess

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     Annual Leave taken but not accrued, or paying to the Company such amount if
     the final salary payment is insufficient for such purpose;

3.   if for any reason the Employee shall not have taken his full entitlement of
     Annual Leave in any one year he shall not have any claim against the
     Company in respect thereof nor, unless the reason is the exigencies of the
     Company's business (of which the Company shall be the sole judge), shall he
     be entitled to additional Annual Leave in any year in respect of leave not
     taken in previous years.

IN WITNESS whereof this Agreement has been entered into the day and year first
before written.

<TABLE>
<S>                       <C>   <C>
SIGNED by Wang Shuang     )
for and on behalf of      )
NINETOWNS DIGITAL WORLD   )     /s/ Wang Shuang
TRADE HOLDINGS LIMITED          --------------------------------
                          )

SIGNED by                 )
JOHN YAN WANG             )     /s/ John Yan Wang
                                --------------------------------
</TABLE>

                                       10PROFESSIONAL/PERSONAL SERVICES CONTRACT

CONTRACT BETWEEN

THE OFFICE OF MEDICAID POLICY AND PLANNING, 

THE OFFICE OF THE CHILDREN'S HEALTH INSURANCE PROGRAM

AND 

 MOLINA HEALTHCARE OF INDIANA, INC.

This Contract, entered into by and between The Office of Medicaid Policy and Planning and the Office of Children's Health Insurance Program, (hereinafter referred to as "State" or "Office") of the Indiana Family and Social Services Administration, 402 West Washington Street, Room W382, Indianapolis, IN 46204, and Molina Healthcare of Indiana, Inc. (hereinafter referred to as "Contractor"),Merrillville Corporate Center, 8001 Broadway, Suite 400, Merrillville, Indiana  46410, is executed pursuant to the terms and conditions set forth herein.  

WHEREAS, IC 12-15-30-1 authorizes the Office of Medicaid Policy and Planning to enter into contracts to assist in the administration of the Medicaid program; 

WHEREAS, IC 12-17.6 authorizes the Office of the Children's Health Insurance Program to enter into contracts as necessary to assist in the design and administration of the Indiana Children's Health Insurance Program;

WHEREAS, the State of Indiana is desirous to contract for services to assist the Office's efforts to effectively manage a risk-based health care delivery system that administers and provides covered health care services for certain Hoosier Healthwise members enrolled in Benefit Packages A, B and C, as procured through Request for Proposal (RFP) # 4-79;  

WHEREAS this Contract contains the payment rates under which the Contractor shall be paid and that these rates have been determined to be actuarially sound for risk contracts, in accordance with applicable law;

WHEREAS, the Contractor is willing and able to perform the desired services for Hoosier Healthwise members assigned to the Contractor;

NOW THEREFORE, the parties enter into this contract for the consideration set out below, all of which is deemed to be good and sufficient consideration in order to make this contract a binding legal instrument.

1.  Duties of Contractor

The Contractor shall provide the following services relative to this Contract:

A.The Contractor agrees to assume financial risk for developing and managing a health care delivery system and for arranging or administering all Hoosier Healthwise covered services, as set out in section 2.0 of Attachment 1 of this Contract, in exchange for a per-enrollee, per-month fixed fee, to enrollees in Hoosier Healthwise Packages A, B and C and enrolled with the Contractor.  Wards of the State, foster children and children receiving adoption assistance may enroll on a voluntary basis and will not be subject to auto-assignment into the Hoosier Healthwise program.  The Contractor must, at a minimum, furnish covered services up to the limits specified by the Medicaid and CHIP programs. The Contractor may exceed these limits.  However, in no instance may any covered service's limitations be more restrictive than those which exist in the Indiana Medicaid fee-for-service program for Packages A and B, and the Children's Health Insurance Program for Package C, in accordance with 42 CFR 438.210.

B.The Contractor agrees to perform all duties and arrange and administer the provision of all services as set out herein and in Contract Attachment 1, MCO Scope of Work, as attached, and contained in the RFP as attached and the Contractor's responses to the RFP as attached, all of which are incorporated into this Contract by reference. In addition, the Contractor shall comply with all policies and procedures defined in any bulletin, manual, or handbook yet to be distributed by the State or its agents insofar as those policies and procedures provide further clarification and are no more restrictive than any policies and procedures contained in the RFP and any amendments to the RFP. The Contractor agrees to comply with all pertinent state and federal statutes and regulations in effect throughout the duration of this Contract and as they may be amended from time to time.

C.The Contractor agrees that it will not discriminate against individuals eligible to be covered under this Contract on the basis of health status or need for health services; and the Contractor may not terminate an enrollee's enrollment, or act to encourage an enrollee to terminate his/her enrollment, because of an adverse change in the enrollee's health.  The disenrollment function will be carried out by a State contractor who is independent of the Contractor; therefore, any request to terminate an enrollee's enrollment must be approved by the Offices.

D.The Contractor agrees that no services or duties owed by the Contractor under this Contract will be performed or provided by any person or entity other than the Contractor, except as contained in written subcontracts or other legally binding agreements.  Prior to entering into any such subcontract or other legally binding agreement, the Contractor shall, in each case, submit the proposed subcontract or other legally binding agreement to the Offices for prior review and approval.  Prior review and approval of a subcontract or legally binding agreement shall not be unreasonably delayed by the Offices.  The Offices shall, in appropriate cases and as requested by the Contractor, expedite the review and approval process.  Under no circumstances shall the Contractor be deemed to have breached its obligations under this Contract if such breach was a result of the Offices' failure to review and approve timely any proposed subcontract or other legally binding agreement.  If the Offices disapprove any proposed subcontract or other legally binding agreement, the Offices shall state with reasonable particularity the basis for such disapproval.  No subcontract into which the Contractor enters with respect to performance under this Contract shall in any way relieve the Contractor of any responsibility for the performance of duties under this Contract. All subcontracts and amendments thereto executed by the Contractor under this Contract must meet the following requirements; any existing subcontracts or legally binding agreements which fail to meet the following requirements shall be revised to include the requirements within ninety (90) days from the effective date of this Contract:

	Be in writing and specify the functions of the subcontractor.

	Be legally binding agreements. 

	Specify the amount, duration and scope of services to be provided by the subcontractor.

	Provide that the Offices may evaluate, through inspection or other means, the quality, appropriateness, and timeliness of services performed.
	Provide for inspections of any records pertinent to the contract by the Offices. 
	Require an adequate record system to be maintained for recording services, charges, dates and all other commonly accepted information elements for services rendered to recipients under the contract. 
	Provide for the participation of the Contractor and subcontractor in any internal and external quality assurance, utilization review, peer review, and grievance procedures established by the Contractor, in conjunction with the Offices. 
	Provide that the subcontractor indemnify and hold harmless the State of Indiana, its officers, and employees from all claims and suits, including court costs, attorney's fees, and other expenses, brought because of injuries or damage received or sustained by any person, persons, or property that is caused by any act or omission of the Contractor and/or the subcontractors.  The State shall not provide such indemnification to the subcontractor.
	Identify and incorporate the applicable terms of this Contract and any incorporated documents.  The subcontract shall provide that the subcontractor agrees to perform duties under the subcontract, as those duties pertain to enrollees, in accordance with the applicable terms and conditions set out in this Contract, any incorporated documents, and all applicable state and federal laws, as amended.

E. The Contractor agrees that, during the term of this Contract, it shall maintain, with any contracted provider rendering health care services under the RFP, provider service agreements which, in addition to the subcontractor requirements in paragraph 1.D., meet the following requirements; any existing provider service agreements which fail to meet the requirements shall be revised to include the requirements within ninety (90) days from the effective date of this Contract.  The provider service agreements shall:

1.  Identify and incorporate the applicable terms of this Contract and any incorporated documents.  Under the terms of the provider services agreement, the provider shall agree that the applicable terms and conditions set out in this Contract, any incorporated documents, and all applicable state and federal laws, as amended, govern the duties and responsibilities of the provider with regard to the provision of services to enrollees.  

2. Reference a written provider claim resolution procedure as set out in RFP Attachment N.

3.PMP agreements for Primary Medical Providers (PMPs) shall include a provision allowing the PMP to terminate the agreement for any reason upon written notice to the Contractor.  The Contractor may require that the physician provide said notice to the Contractor up to ninety (90) days prior to termination.

4.Any monies paid to the PMP, such as bonuses or incentives, over and above the contracted rate must be linked to improvements in member health outcomes (e.g., HEDIS measures) or process performance (e.g., encounter submissions). The payment or retention of the payment may not be contingent on the PMP continuing its contract with the MCO for any period longer than ninety (90) days. On an annual basis, MCO must report to OMPP each PMP who received such a payment, the amount of the payment, and the improvements realized that prompted the payment. This provision shall apply to any and all new PMP contracts, renewals or amendments that are effective after January 1, 2005.

F.The Contractor agrees that all laboratory testing sites providing services under this Contract must have a valid Clinical Laboratory Improvement Amendments (CLIA) certificate and comply with the CLIA regulations at 42 CFR Part 493. 

G.The Contractor agrees that it shall:

1.Retain, at all times during the term of this Contract, a valid Certificate of Authority under applicable State laws issued by the State of Indiana Department of Insurance.

2.Ensure that, during the term of this Contract, each provider rendering health care services under the RFP is authorized to do so in accordance with the following:

	The provider must maintain a current Indiana Health Coverage Programs (IHCP) provider agreement and must be duly licensed in accordance with the appropriate state licensing board and shall remain in good standing with said board.
	If a provider is not authorized to provide such services under a current IHCP provider agreement or is no longer licensed by said board, the Contractor is obligated to terminate its contractual relationship authorizing or requiring such provider to provide services under the RFP.  The Contractor must terminate its contractual relationship with the provider as soon as the Contractor has knowledge of the termination of the provider's license or the IHCP provider agreement. 

3.   Comply with the specific requirements for Health Maintenance Organizations (HMOs) eligible to receive Federal Financial Participation (FFP) under Medicaid, as listed in the State Organization and General Administration Chapter of the Centers for Medicare and Medicaid Services State Medicaid Manual.  These requirements include, but are not limited to the following:

a.The Contractor shall meet the definition of HMO as specified in the Indiana State Medicaid Plan.

b.Throughout the duration of this Contract, the Contractor shall satisfy the Chicago Regional Office of the Centers for Medicare and Medicaid Services (hereinafter called CMS) that the Contractor is compliant with the Federal requirements for protection against insolvency pursuant to 42 CFR 438.116, the requirement that the Contractor shall continue to provide services to Contractor enrollees until the end of the month in which insolvency has occurred, and the requirement that the Contractor shall continue to provide inpatient services until the date of discharge for an enrollee who is institutionalized when insolvency occurs.  The Contractor shall meet this requirement by posting a performance bond pursuant to paragraph 1.27 of the RFP, obtaining appropriate reinsurance pursuant to Section 1.5.3 of Attachment 1 to this Contract, and satisfying the statutory reserve requirements of the Indiana Department of Insurance. 

	The Contractor shall comply with, and shall exclude from participation as either a provider or subcontractor of the Contractor, any entity or person that has been excluded under the authority of Sections 1124A, 1128 or 1128A of the Social Security Act or does not comply with the requirements of Section 1128(b) of the Social Security Act.  
	In the event that the CMS determines that the Contractor has violated any of the provisions of 42 CFR 434.67(a), CMS may deny payment of FFP for new enrollees of the HMO under 42 USC 1396b(m)(5)(B)(ii).  The Offices shall automatically deny State payment for new enrollees whenever, and for so long as, Federal payment for such enrollees has been denied.

H.The Contractor shall submit proof, satisfactory to the Offices, of indemnification of the Contractor by the Contractor's parent corporation, if applicable, and by all of its subcontractors.

I.The Contractor shall submit proof, satisfactory to the Offices, that all subcontractors will hold the State harmless from liability under the subcontract.  This assurance in no way relieves the Contractor of any responsibilities under the RFP or this Contract.

J.The Contractor agrees that, prior to initially enrolling any Hoosier Healthwise Package A, B or C enrollees, it shall go through and satisfactorily complete the readiness review as described in the RFP.  The required readiness review shall begin before the contract between the Contractor and the State is finalized and executed. Within ninety (90) days from the effective date of this Contract, the Contractor shall make a good faith effort to resolve, to the satisfaction of the Offices, any outstanding issues brought to the Contractor's attention by the Offices as a result of the readiness review.

K.The Contractor shall establish and maintain a quality improvement program that meets the requirements of 42 CFR 438, subpart D, as well as other specific requirements set forth in the RFP.  The Offices and the CMS may evaluate, through inspection or other means, including but not limited to, the review of the quality assurance reports required under this Contract, and the quality, appropriateness, and timeliness of services performed under this Contract.  The Contractor agrees to participate and cooperate, as directed by the Offices, in the annual external quality review of the services furnished by the Contractor.

L.In accordance with 42 CFR 438.6(i), the Contractor agrees that it and any of its subcontractors shall comply with the requirements, if applicable, of 42 CFR 489, Subpart I, relating to maintaining and distributing written policies and procedures respecting advance directives.  The Contractor shall distribute policies and procedures to adult individuals during the enrollee enrollment process and whenever there are revisions to these policies and procedures.  The Contractor shall make available for inspection, upon reasonable notice and request by the Offices, documentation concerning its written policies, procedures and distribution of such written procedures to enrollees.

M.Pursuant to 42 CFR 417.479(a), the Contractor agrees that no specific payment can be made directly or indirectly under a physician incentive plan to a physician or physician group as an inducement to reduce or limit medically necessary services furnished to an individual enrollee. The Contractor must disclose to the State the information on provider incentive plans listed in 42 CFR 417.479(h)(1) and 417.479(i) at the times indicated at 42 C.F.R. 438.6(h), in order to determine whether the incentive plan meets the requirements of 42 CFR 417(d)-(g). The Contractor must provide the capitation data required under paragraph (h)(1)(vi) for the previous calendar year to the State by application/contract renewal of each year. The Contractor will provide the information on its physician incentive plan(s) listed in 42 CFR 417.479(h)(3) to any enrollee upon request.

N.The Contractor must not prohibit or restrict a health care professional from advising an enrollee about his/her health status, medical care, or treatment, regardless of whether benefits for such care are provided under this Contract, if the professional is acting within the lawful scope of practice.  However, this provision does not require the Contractor to provide coverage of a counseling or referral service if the Contractor objects to the service on moral or religious grounds and makes available information on its policies to potential enrollees and enrollees within ninety (90) days after the date the Contractor adopts a change in policy regarding such counseling or referral service.

O.In accordance with 42 U.S.C. Section 1396u-2(b)(6), the Contractor agrees that an enrollee may not be held liable for the following: 

 

	Debts of the Contractor, or its subcontractors, in the event of any organization's insolvency;

	Services provided to the enrollee in the event the Contractor fails to receive payment from the Offices for such services or in the event a provider fails to receive payment from the Contractor or Offices; or 

	Payments made to a provider in excess of the amount that would be owed by the enrollee if the Contractor had directly provided the services. 

P.      The Offices may from time to time request and the Contractor, and all of its subcontractors, agree that the Contractor, or its subcontractors, shall prepare and submit additional compilations and reports as requested by the Offices.  Such requests will be limited to situations in which the desired data is considered essential and cannot be obtained through existing Contractor reports.  The Contractor, and all of its subcontractors, agree that a response to the request shall be submitted by the Offices' requested completion date, or if the Offices do not specify a completion date, within thirty (30) days from the date of the request,. The response shall include the additional compilations and reports as requested, or the status of the requested information and an expected completion date. When such requests pertain to legislative inquiries or expedited inquiries from the Office of the Governor, the additional compilations and reports shall be submitted by the Offices' requested completion date. Failure by the Contractor, or its subcontractors, to comply with response time frames shall be considered grounds for the Offices to pursue the provisions outlined in Section 8.0 of Attachment 1 of this Contract.  In the event that delays in submissions are a consequence of a delay by the Offices or the Medicaid Fiscal Agent, the time frame for submission shall be extended by the length of time of the delay.

Q.Contractor agrees that an abortion will be covered only in the following situations:

1.If the pregnancy is the result of an act of rape or incest; or

2.If the woman suffers from a physical disorder, physical injury, or physical illness, including a life-endangering physical condition caused by or arising from the pregnancy itself, which would, as certified by a physician, place the woman in danger of death unless an abortion is performed.

2.  Consideration

In consideration of the services to be performed by the Contractor, the Offices agree to pay the Contractor the following amounts per month per enrolled member, and per maternity delivery, as contained in the Offices' capitation payment listing and based upon the capitation rates by category as listed below:

	 	

CAPITATION RATES
	 
	

Category
	

Packages A and B
	

Package C

	

North Region
	 	 
	

Newborns
	

$320.53
	

$176.46

	

Preschool 
	

$72.83
	

$74.95

	

Children 
	

$70.15
	

$67.54

	

Adolescents 
	

$100.83
	

$94.02

	

Adult Males
	

$234.99
	 
	

Adult Females
	

$211.26
	 
	

Deliveries
	

$3,331.43/delivery
	

$3,331.43/delivery

	

Central Region
	 	 
	

Newborns
	

$286.09
	

$156.09

	

Preschool 
	

$82.19
	

$80.54

	

Children 
	

$79.16
	

$82.57

	

Adolescents 
	

$113.78
	

$101.04

	

Adult Males
	

$303.08
	 
	

Adult Females
	

$272.48
	 
	

Deliveries
	

$3,301.57/delivery
	

$3,301.57/delivery

	

South Region
	 	 
	

Newborns
	

$287.06
	

$158.04

	

Preschool 
	

$79.12
	

$74.94

	

Children 
	

$76.11
	

$67.57

	

Adolescents 
	

$109.36
	

$93.93

	

Adult Males
	

$286.33
	 
	

Adult Females
	

$258.38
	 
	

Deliveries
	

$3,324.80/delivery
	

$3,324.80/delivery

The parties agree that the Offices have the option to adjust the capitation rates annually. In the event that the Offices adjust the fee-for-service (FFS) rates, the Offices may, in its sole discretion, further adjust the capitation rates in accordance with the FFS adjustment.  If the Offices made such an adjustment, it shall apply only to the specific service component of the capitation rate that corresponds to the FFS adjustment.  Any capitation rates adjusted due to a change in the FFS program may be further adjusted to ensure actuarial soundness.  All adjustments are subject to federal regulations for risk contracts. Rates revised under this provision shall be implemented only after a contract amendment is executed and approved.

Payments provided for under this Contract will be denied for new enrollees when, and for so long as, payment for those enrollees is denied by CMS, in accordance with 42 CFR 438.730.

3.  Term

This Contract shall be effective for a period of two (2) years.  It shall commence on January 1, 2005, and shall remain in effect through December 31, 2006.  At the discretion of the State, the term may be extended for up to two (2) additional year(s).  In no event shall the term exceed December 31, 2008.

4.  Access to Records

The Contractor and its subcontractors, if any, shall maintain all books, documents, papers, accounting records, and other evidence pertaining to all costs incurred under this Contract.  They shall make such materials available at their respective offices at all reasonable times during this Contract term, and for three (3) years from the date of final payment under this Contract, for inspection by the State or by any other authorized representative of state or federal government.  Copies thereof shall be furnished at no cost to the State if requested.

5.  Assignment

The Contractor shall not assign or subcontract the whole or any part of this Contract without the State's prior written consent.  The Contractor may assign its right to receive payments to such third parties as the Contractor may desire without the prior written consent of the State, provided that Contractor gives written notice (including evidence of such assignment) to the State thirty (30) days in advance of any payment so assigned.  The assignment shall cover all unpaid amounts under this Contract and shall not be made to more than one party.

6.  Audits

Contractor acknowledges that it may be required to submit to an audit of funds paid through this Contract.  Any such audit shall be conducted in accordance with IC 5-11-1, and audit guidelines specified by the State.

7.  Authority to Bind Contractor

Notwithstanding anything in this Contract to the contrary, the signatory for the Contractor represents that he/she has been duly authorized to execute contracts on behalf of the Contractor and has obtained all necessary or applicable approvals from the home office of the Contractor, if applicable, to make this Contract fully binding upon the Contractor when his/her signature is affixed, and this Contract is not subject to further acceptance by Contractor when accepted by the State of Indiana.

8.  Changes in Work

In the event the State requires a major change in the scope, character or complexity of the work after the work has begun, adjustments in compensation to the Contractor shall be determined by the State in the exercise of its good faith and prudent judgment.  The Contractor shall not commence any additional work or change the scope of the work until authorized in writing by the State.  No claim for additional compensation shall be made in the absence of a prior written approval executed by all signatories hereto.  All changes shall be by formal amendment, signed by all parties as required by Indiana law.

9.  Compliance with Laws

The Contractor shall comply with all applicable federal, state and local laws, rules, regulations and ordinances, the provisions of which are incorporated by reference.  The enactment or amendment of any applicable state or federal statute or the promulgation of any rules or regulations thereunder after execution of this Contract shall be reviewed by the State and the Contractor to determine whether the provisions of this Contract require formal modification.

10.  Condition of Payment

All deliverables provided by the Contractor under this contract must be performed to the State's reasonable satisfaction, as determined at the discretion of the undersigned State representative and in accordance with all applicable federal, state, local laws, ordinances, rules, and regulations.  The Contractor will not receive payment for work found by the State to be unsatisfactory or performed in violation of federal, state, or local law.

11.  Confidentiality of Data, Property Rights in Products, and Copyright Prohibition

The Contractor agrees that all information, data, findings, recommendations, proposals, etc. by whatever name described and in whatever form secured, developed, written or produced by the Contractor in furtherance of this Contract shall be the property of the State.  The Contractor shall take such action as is necessary under law to preserve such confidentiality and property rights in and of the State while such property is within the control and/or custody of the Contractor. The Contractor hereby specifically waives and/or releases to the State any cognizable property right of the Contractor to copyright, license, patent or otherwise use such information, data, findings, recommendations, proposals, etc.

12.  Confidentiality of State Information

The Contractor understands and agrees that data, materials, and information disclosed to Contractor may contain confidential and protected data. Therefore, the Contractor promises and assures that data, material, and information gathered, based upon or disclosed to the Contractor for the purpose of this Contract, will not be disclosed to others or discussed with third parties without the prior written consent of the State.

13.  Reserved

14.  Conflict of Interest

A.       As used in this section:

"Immediate family" means the spouse and the unemancipated children of an individual.

"Interested party," means:

	The individual executing this contract;

	An individual who has an interest of three percent (3%) or more of Contractor, if Contractor is not an individual; or

	Any member of the immediate family of an individual specified under subdivision 1 or 2.

"Department" means the Indiana Department of Administration.

"Commission" means the State Ethics Commission.

	The Department may cancel this Contract without recourse by Contractor if any interested party is an employee of the State of Indiana.

	The Department will not exercise its right of cancellation under section B above if the Contractor gives the Department an opinion by the Commission indicating that the existence of this Contract and the employment by the State of Indiana of the interested party does not violate any statute or rule relating to ethical conduct of state employees.  The Department may take action, including cancellation of this Contract consistent with an opinion of the Commission obtained under this section. 

	Contractor has an affirmative obligation under this Contract to disclose to the Department when an interested party is or becomes an employee of the State of Indiana.  The obligation under this section extends only to those facts that Contractor knows or reasonably could know.

15.  Reserved

16.  Debarment and Suspension

Contractor certifies, by entering into this Contract, that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from entering into this Contract by any federal agency or by any department, agency or political subdivision of the State of Indiana.  The term "principal" for purposes of this Contract means an officer, director, owner, partner, key employee, or other person with primary management or supervisory responsibilities, or a person who has a critical influence on or substantive control over the operations of Contractor.  The Contractor also further certifies that it has verified the suspension and debarment status for all sub-contractors receiving funds under this contract and is solely responsible for any paybacks and or penalties that might arise from non-compliance.

17.  Default by State

If the State, sixty (60) days after receipt of written notice, fails to correct or cure any breach of this Contract, then the Contractor may cancel and terminate this Contract and collect all monies due up to and including the date of termination.

18.  Disputes

A.       Should any disputes arise with respect to this Contract, Contractor and the State agree to act immediately to resolve such disputes.  Time is of the essence in the resolution of disputes.  

B.      The Contractor agrees that, the existence of a dispute notwithstanding, it will continue without delay to carry out all its responsibilities under this Contract that are not affected by the dispute.  Should the Contractor fail to continue to perform its responsibilities regarding all non-disputed work, without delay, any additional costs incurred by the State or the Contractor as a result of such failure to proceed shall be borne by the Contractor, and the Contractor shall make no claim against the State for such costs.  If the State and the Contractor cannot resolve a dispute within ten (10) working days following notification in writing by either party of the existence of a dispute, then the following procedure shall apply:

The parties agree to resolve such matters through submission of their dispute to the Commissioner of the Indiana Department of Administration.  The Commissioner shall reduce a decision to writing and mail or otherwise furnish a copy thereof to the Contractor and the State within ten (10) working days after presentation of such dispute for action.  The Commissioner's decision shall be final and conclusive unless either party mails or otherwise furnishes to the Commissioner, within ten (10) working days after receipt of the Commissioner's decision, a written appeal.  Within ten (10) working days of receipt by the Commissioner of a written request for appeal, the decision may be reconsidered.  If no reconsideration is provided within ten (10) working days, the parties may mutually agree to submit the dispute to arbitration for a determination, or otherwise the dispute may be submitted to an Indiana court of competent jurisdiction.

The State may withhold payments on disputed items pending resolution of the dispute.  The unintentional nonpayment by the State to the Contractor of one or more invoices not in dispute in accordance with the terms of this Contract will not be cause for Contractor to terminate this Contract, and the Contractor may bring suit to collect these amounts without following the disputes procedure contained herein.

19.  Drug-Free Workplace Certification

The Contractor hereby covenants and agrees to make a good faith effort to provide and maintain a drug-free workplace.  Contractor will give written notice to the State within ten (10) days after receiving actual notice that the Contractor or an employee of the Contractor has been convicted of a criminal drug violation occurring in the contractor's workplace.

False certification or violation of the certification may result in sanctions including, but not limited to, suspension of contract payments, termination of this Contract and/or debarment of contracting opportunities with the State of Indiana for up to three (3) years.

In addition to the provisions of the above paragraphs, if the total contract amount set forth in this Contract is in excess of $25,000.00, Contractor hereby further agrees that this agreement is expressly subject to the terms, conditions, and representations of the following certification:

This certification is required by Executive Order No. 90-5, April 12, 1990, issued by the Governor of Indiana.  Pursuant to its delegated authority, the Indiana Department of Administration is requiring the inclusion of this certification in all contracts and grants from the State of Indiana in excess of $25,000.00.  No award of a contract shall be made, and no contract, purchase order or agreement, the total amount of which exceeds $25,000.00, shall be valid, unless and until this certification has been fully executed by the Contractor and made a part of the contract or agreement as part of the contract documents.  

The Contractor certifies and agrees that it will provide a drug-free workplace by:

	Publishing and providing to all of its employees a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the Contractor's workplace, and specifying the actions that will be taken against employees for violations of such prohibition; 

	Establishing a drug-free awareness program to inform it's employees of (1) the dangers of drug abuse in the workplace; (2) the Contractor's policy of maintaining a drug-free workplace; (3) any available drug counseling, rehabilitation, and employee assistance programs; and (4) the penalties that may be imposed upon an employee for drug abuse violations occurring in the workplace;

	Notifying all employees in the statement required by subparagraph (A) above that as a condition of continued employment, the employee will (1) abide by the terms of the statement; and (2) notify the Contractor of any criminal drug statute conviction for a violation occurring in the workplace no later than five (5) days after such conviction;

	Notifying in writing the State within ten (10) days after receiving notice from an employee under subdivision (C)(2) above, or otherwise receiving actual notice of such conviction;

	Within thirty (30) days after receiving notice under subdivision (C)(2) above of a conviction, imposing the following sanctions or remedial measures on any employee who is convicted of drug abuse violations occurring in the workplace: (1) taking appropriate personnel action against the employee, up to and including termination; or (2) requiring such employee to satisfactorily participate in a drug abuse assistance or rehabilitation program approved for such purposes by a federal, state or local health, law enforcement, or other appropriate agency; and 

	Making a good faith effort to maintain a drug-free workplace through the implementation of subparagraphs (A) through (E) above.

20.  Employment Option

If the State determines that it would be in the State's best interest to hire an employee of the Contractor, the Contractor will release the selected employee from any non-compete agreements that may be in effect.  This release will be at no cost to the State or the employee.

21.  Force Majeure

In the event that either party is unable to perform any of its obligations under this Contract or to enjoy any of its benefits because of natural disaster or decrees of governmental bodies not the fault of the affected party (hereinafter referred to as a "Force Majeure Event"), the party who has been so affected shall immediately give notice to the other party and shall do everything possible to resume performance. Upon receipt of such notice, all obligations under this Contract shall be immediately suspended.  If the period of nonperformance exceeds thirty (30) days from the receipt of notice of the Force Majeure Event, the party whose ability to perform has not been so affected may, by giving written notice, terminate this Contract.

22.  Funding Cancellation

When the Director of the State Budget Agency makes a written determination that funds are not appropriated or otherwise available to support continuation of performance of this Contract, this Contract shall be canceled.  A determination by the Budget Director that funds are not appropriated or otherwise available to support continuation of performance shall be final and conclusive.

23.  Governing Laws

This Contract shall be construed in accordance with and governed by the laws of the State of Indiana and suit, if any, must be brought in the State of Indiana.

24.  Indemnification

Contractor agrees to indemnify, defend, and hold harmless the State of Indiana and its agents, officials, and employees from all claims and suits including court costs, attorney's fees, and other expenses caused by any act or omission of the Contractor and/or its subcontractors, if any.  The State shall not provide such indemnification to the Contractor.

25.  Independent Contractor

Both parties hereto, in the performance of this Contract, shall act in an individual capacity and not as agents, employees, partners, joint venturers or associates of one another.  The employees or agents of one party shall not be deemed or construed to be the employees or agents of the other party for any purposes whatsoever.  Neither party will assume liability for any injury (including death) to any persons, or damage to any property arising out of the acts or omissions of the agents, employees or subcontractors of the other party.

The Contractor shall be responsible for providing all necessary unemployment and workers' compensation insurance for the Contractor's employees.

26.  Reserved

27.  Insurance 

	The Contractor shall secure and keep in force during the term of this agreement, the following insurance coverages, covering the Contractor for any and all claims of any nature which may in any manner arise out of or result from this agreement:

	Commercial general liability, including contractual coverage, and products or completed operations coverage (if applicable), with minimum liability limits of $500,000 per person and $1,000,000 per occurrence unless additional coverage is required by the State. 
	Reserved 
	Reserved 
	Workers compensation coverage meeting all statutory requirements of IC 22-3-2.  In addition, an "all states endorsement" covering claims occurring outside the state of Indiana if any of the services provided under this agreement involve work outside the state of Indiana.  The Contractor shall provide proof of such insurance coverage by tendering to the undersigned State representative, a certificate of insurance prior to the commencement of this agreement. 

B.       The Contractor's insurance coverage must meet the following additional requirements:

	Any deductible or self-insured retention amount or other similar obligation under the insurance policies shall be the sole obligation of the Contractor.  
	The State will be defended, indemnified, and held harmless to the full extent of any coverage actually secured by the Contractor in excess of the minimum requirements set forth above.  The duty to indemnify the State under this agreement shall not be limited by the insurance required in this agreement. 
	The insurance required in this agreement, through a policy or endorsement, shall include a provision that the policy and endorsements may not be canceled or modified without thirty (30) days' prior written notice to the undersigned State representative. 
	Failure to provide insurance as required in this agreement is a material breach of contract entitling the State to immediately terminate this agreement. 

The Contractor shall furnish a certificate of insurance and all endorsements to the undersigned State representative prior to the commencement of this agreement.

28.  Reserved

29.  Licensing Standards

The parties agree that Contractor and its employees and subcontractors shall comply with all applicable licensing standards, certification standards, accrediting standards and any other laws, rules or regulations governing services to be provided by the Contractor pursuant to this Contract.  The State shall not be required to reimburse Contractor for any services performed when Contractor or its employees or subcontractors are not in compliance with such applicable standards, laws, rules or regulations.  If licensure, certification or accreditation expires or is revoked, Contractor shall notify State immediately and the State, at its option, may immediately terminate this Contract.

30.  Merger and Modification 

This contract constitutes the entire agreement between the parties.  No understandings, agreements, or representations, oral or written, not specified within this contract will be valid provisions of this contract.  This contract may not be modified, supplemented, or amended, in any manner, except by written agreement signed by all necessary parties.

31. Minority and Women Business Enterprise Compliance

The Contractor agrees to comply fully with the provisions of the Contractor's MBE/WBE participation plans, and agrees to comply with all Minority and Women Business Enterprise statutory and administrative code requirements and obligations, including IC 4-13-16.5 and 25 IAC 5.

The Contractor further agrees to cooperate fully with the minority and women's business enterprises division to facilitate the promotion, monitoring, and enforcement of the policies and goals of MBE/WBE program including any and all assessments, compliance reviews and audits that may be required.

32. Nondiscrimination

Pursuant to IC 22-9-1-10 and the Civil Rights Act of 1964, Contractor and its subcontractors shall not discriminate against any employee or applicant for employment in the performance of this Contract.  The Contractor shall not discriminate with respect to the hire, tenure, terms, conditions or privileges of employment or any matter directly or indirectly related to employment, because of race, color, religion, sex, disability, national origin or ancestry.  Breach of this covenant may be regarded as a material breach of this Contract.  The Contractor's execution of this Contract also signifies compliance with applicable federal laws, regulations, and executive orders prohibiting discrimination in the provision of services based on race, color, national origin, age, sex, disability or status as a veteran.

The Contractor understands that the State is a recipient of federal funds.  Pursuant to that understanding, the Contractor and its subcontractor, if any, agree that if the Contractor employs fifty (50) or more employees and does at least $50,000.00 worth of business with the State and is not exempt, the Contractor will comply with the affirmative action reporting requirements of 41 CFR 60-1.7.  The Contractor shall comply with Section 202 of Executive Order 11246, as amended, 41 CFR 60-250, and 41 CFR 60-741, as amended, which are incorporated herein by specific reference.  Breach of this covenant may be regarded as a material breach of this Contract.

33. Notice to Parties

Whenever any notice, statement or other communication is required under this Contract, it shall be sent to the following addresses, unless otherwise specifically advised.

	Notices to the State shall be sent to:

John Barth, Director of Operations -- Managed Care

Office of Medicaid Policy and Planning

402 W. Washington St., W374, MS-07

Indianapolis, IN  46204

	Notices to the Contractor shall be sent to:

Paul Hobson, Executive Director

Molina Healthcare of Indiana, Inc.

Merrillville Corporate Center

8001 Broadway, Suite 400 

Merrillville, IN  46410

	Payments to the Contractor shall be sent via electronic funds transfer by the fiscal agent to an account to be specified by the Contractor.

 

34. Order of Precedence

Any inconsistency or ambiguity in this Contract shall be resolved by giving precedence in the following order:  (1) This Contract, (2) Contract Attachment 1, (3) RFP# 4-79, (4) Contractor's response to RFP# 4-79, and (5) attachments prepared by the Contractor.

35. Ownership of Documents and Materials

All documents, records, programs, data, film, tape, articles, memoranda, and other materials not developed or licensed by the Contractor prior to execution of this Contract, but specifically developed under this Contract shall be considered "work for hire" and the Contractor transfers any ownership claim to the State of Indiana and all such materials will be the property of the State of Indiana.  Use of these materials, other than related to contract performance by the Contractor, without the prior written consent of the State, is prohibited.  During the performance of this Contract, the Contractor shall be responsible for any loss of or damage to these materials developed for or supplied by the State and used to develop or assist in the services provided herein while the materials are in the possession of the Contractor.  Any loss or damage thereto shall be restored at the Contractor's expense.  Full, immediate, and unrestricted access to the work product of the Contractor during the term of this Contract shall be available to the State.

36. Payments 

	The Office will provide the above-specified funding on a per member per month and per maternity delivery basis, as contained in the Offices' capitation payment listing, and according to the capitation rates by category as listed in Paragraph 2.

	All payment obligations are subject to the encumbrance of monies and shall be made in arrears in accordance with Indiana law and the State of Indiana's fiscal policies and procedures.  The Contractor may not submit claim forms before the services have been performed.  

	It is understood and agreed upon by the parties that all obligations of the State of Indiana are contingent upon the availability and continued appropriation of State and Federal funds, and in no event shall the State of Indiana be liable for any payments in excess of available appropriated funds.  

37. Penalties/Interest/Attorney's Fees

The State will in good faith perform its required obligations hereunder and does not agree to pay any penalties, liquidated damages, interest, or attorney's fees, except as required by Indiana law, in part, IC 5-17-5, IC 34-54-8, and IC 34-13-1.

Notwithstanding the provisions contained in IC 5-17-5, the Parties stipulate and agree that any liability resulting from the State of Indiana's failure to make prompt payment shall be based solely on the amount of funding originating from the State of Indiana and shall not be based on funding from federal or other sources.

38. Progress Reports

The Contractor shall submit progress reports to the State upon request.  The report shall be oral, unless the State, upon receipt of the oral report, should deem it necessary to have it in written form.  The progress reports shall serve the purpose of assuring the State that work is progressing in line with the schedule, and that completion can be reasonably assured on the scheduled date.

39. Reserved

 40. Security and Privacy of Health Information

The Contractor agrees to comply with all requirements of the Health Insurance Portability and Accountability Act of 1996 (HIPAA), Privacy Regulations, that take effect April 14, 2003, and Security Regulations, that take effect on April 20, 2005, in all activities related to the contract, to maintain compliance throughout the life of the contract, to operate any systems used to fulfill the requirements of this contract in full compliance with HIPAA and to take no action which adversely affects the State's HIPAA compliance.

The parties acknowledge that the Department of Health and Human Services (DHHS) has issued the Final Rules, as amended from time to time on the Standards for Privacy of Individually Identifiable Health Information and on the Standards for Security of Individually Identifiable Health Information, as required by the Administrative Simplification Section of HIPAA.  The parties acknowledge that the Office is Covered Entity within the meaning of HIPAA.  To the extent required by the provisions of HIPAA and regulations promulgated thereunder, the Contractor assures that it will appropriately safeguard Protected Health Information (PHI), as defined by the regulations, which is made available to or obtained by the Contractor in the course of its work under the contract.  The Contractor agrees to comply with all applicable requirements of law relating to PHI with respect to any task or other activity it performs for the Office including, as required by the final Privacy and Security regulations: 

	Implementing administrative, physical and technical safeguards that reasonably and appropriately protect the confidentiality, integrity and availability of the electronic PHI that the Contractor creates, receives, maintains, or transmits on behalf of OMPP;
	Implementing a disaster recovery plan, as appropriate, which includes mechanisms to recover data and/or alternative data storage sites, as determined by OMPP to be necessary to uphold integral business functions in the event of an unforeseen disaster;
	Not using or further disclosing PHI other than as permitted or required by this Contract or by applicable law;

	Using appropriate safeguards to prevent use or disclosure of PHI other than as provided by this Contract or by applicable law;

	Reporting to OMPP any security and/or privacy incident of which the Contractor becomes aware;

	Mitigating, to the extent practicable, any harmful effect that is known to the Contractor and reporting to the Office any use or disclosure by the Contractor, its agent, employees, subcontractors or third parties, of PHI obtained under this Contract in a manner not provided for by this Contract or by applicable law of which the Contractor becomes aware;

	Ensuring that any subcontractors or agents to whom the Contractor provides PHI received from, or created or received by the Contractor, subcontractors or agents on behalf of the Office agree to the same restrictions, conditions and obligations applicable to such party regarding PHI and agrees to implement reasonable and appropriate safeguards to protect it;

	Making the Contractor's internal practices, books and records related to the use of disclosure of PHI received from, or created or received by the Contractor on behalf of the Office available to the Office at its request or to the Secretary of the United States Department of Health and Human Services for purposes of determining the Office's compliance with applicable law.  The Contractor shall immediately notify the Office upon receipt by the Contractor of any such request from the Secretary of DHHS, and shall provide the Office with copies of any materials made available in response to such a request;

	In accordance with procedures established by the Office, making available the information required to provide an accounting of disclosures pursuant to applicable law, if the duties of the Contractor include disclosures that must be accounted for; 

	Making available PHI for amendment and incorporating any amendments to PHI in accordance with 45 CFR 164.526, if the Contractor maintains PHI subject to amendment;

	In accordance with procedures established by the Office, making PHI available to individuals entitled to access and requesting access in compliance with 45 CFR 164.524 and the duties of the Contractor;

	Authorizing termination of the Contract if OMPP determines that the Contractor has violated a material provision; and

	At the termination of the Contract, if feasible, return or destroy all PHI received or created under the Contract.  If OMPP determines return or destruction is not feasible, the protections in this agreement shall continue to be extended to any PHI maintained by the Contractor for as long as it is maintained.

40.5 Electronic Transaction Standards Compliance

In order to fulfill the terms of this Contract, Contractor will utilize and interface with the State's electronic systems and will use them to perform certain electronic transactions that contain health information, and which are subject to the final rules for the Standards for Electronic Transactions, dated August 17, 2000, under the Administrative Simplification Section of HIPAA (the "Transaction Standards").

The Contractor shall comply with the Transaction Standards, as may be amended from time to time, and shall provide documentation of its compliance with them, including a summary of project plans for remediation, status reports of remediation efforts, summary of text results, copies of certifications, if any, and the Contractor's statement affirming completion of all requirements.  Such compliance shall be maintained at no additional cost to the State.

Contractor will indemnify and hold the State harmless from any loss, damage, costs, expense, judgment, sanction or liability, including, but not limited to, attorneys' fees and costs, that the State incurs or is subject to, as a result of Contractor's breach of this Paragraph.

41. Severability 

The invalidity of any section, subsection, clause or provision of this Contract shall not affect the validity of the remaining sections, subsections, clauses or provisions of this Contract.

42. Substantial Performance

This Contract shall be deemed to be substantially performed only when fully performed according to its terms and conditions and any modification thereof.

43. Successors and Assignees

The Contractor binds its successors, executors, administrators, and assignees to all covenants of this Contract.  Except as above set forth, the Contractor shall not assign, sublet or transfer interest in this Contract without the prior written consent of the State of Indiana.

44. Taxes

The State of Indiana is exempt from state, federal, and local taxes.  The State will not be responsible for any taxes levied on the Contractor as a result of this Contract.

45. Termination for Convenience

This Contract may be terminated, in whole or in part, by the State whenever, for any reason, the State determines that such termination is in the best interest of the State.  Termination of services shall be effected by delivery to the Contractor of a Termination Notice at least thirty (30) days prior to the termination effective date, specifying the extent to which performance of services under such termination becomes effective.  The Contractor shall be compensated for services properly rendered prior to the effective date of termination.  The State will not be liable for services performed after the effective date of termination.  The Contractor shall be compensated for services herein provided but in no case shall total payment made to the Contractor exceed the original contract price or shall any price increase be allowed on individual line items if canceled only in part prior to the original termination date. 

46. Termination for Default 

	With the provision of thirty (30) days notice to the Contractor, the State may terminate this Contract in whole or in part, if the Contractor fails to:

	Correct or cure any breach of this Contract;

	Deliver the supplies or perform the services within the time specified in this Contract or any extension;

	Make progress so as to endanger performance of this Contract; or

	Perform any of the other provisions of this Contract.

	If the State terminates this Contract in whole or in part, it may acquire, under the terms and in the manner the State considers appropriate, supplies or services similar to those terminated, and the Contractor will be liable to the State for any excess costs for those supplies or services.  However, the Contractor shall continue the work not terminated.

	The State shall pay the contract price for completed supplies delivered and services accepted.  The Contractor and the State shall agree on the amount of payment for manufacturing materials delivered and accepted and for the protection and preservation of the property.  Failure to agree will be a dispute under the Disputes clause.  The State may withhold from these amounts any sum the State determines to be necessary to protect the State against loss because of outstanding liens or claims of former lien holders.

	The rights and remedies of the State in this clause are in addition to any other rights and remedies provided by law or equity or under this Contract.

47. Registration with the Secretary of State of Indiana

The Contractor certifies that if it is a non-domestic entity, it is registered with the Indiana Secretary of State to do business in the State of Indiana.

48. Reserved

49.  Waiver of Rights

No right conferred on either party under this Contract shall be deemed waived and no breach of this Contract excused, unless such waiver or excuse is in writing and signed by the party claimed to have waived such right.

Failure of the State to enforce at any time any provision of this Contract shall not be construed as a waiver thereof. The remedies herein reserved shall be cumulative and additional to any other remedies in law or equity.

50. Work Standards

The Contractor shall execute its responsibilities by following and applying at all times the highest professional and technical guidelines and standards.  If the State becomes dissatisfied with the work product of or the working relationship with those individuals assigned to work on this Contract, the State may request in writing the replacement of any or all such individuals, and Contractor shall grant such request.

51. State Boilerplate Affirmation Clause

The undersigned attests on behalf of the contractor, subject to the penalties of perjury that I have not altered, modified or changed the State's Boilerplate contract clauses paragraphs 4 through 49) or the Offices' additionally required clauses (paragraphs 50 through 56) in any way and that I am not aware of any alterations, modifications or changes to the State's Boilerplate contract clauses, except for the following clauses which are identified by name below:

Clause 2 Consideration 

Clause 15 Continuity of Services

Clause 26 Information Technology Accessibility 

Clause 28 Key Persons

Clause 33 Notice to Parties

Clause 36 Payments

Clause 48 Travel

 

52.   Assurance of Compliance with Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973 and the Age Discrimination Act of 1975, the Americans with Disabilities Act of 1990 and Title IX of the Education Amendments of 1972

The Contractor agrees that it, and all of its subcontractors and providers, will comply with the following:

A.       Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352), as amended, and all

requirements imposed by or pursuant to the Regulation of the Department of Health and Human Services (45 CFR Part 80), to the end that, in accordance with Title VI of that Act and the Regulation, no person in the United States shall on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity for which the Contractor receives Federal financial assistance under this Contract.

	Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93-112), as amended, and all requirements imposed by or pursuant to the Regulation of the Department of Health and Human Services (45 CFR Part 84), to the end that, in accordance with Section 504 of that Act and the Regulation, no otherwise qualified handicapped individual in the United States shall, solely by reason of his/her handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity for which the Contractor receives Federal financial assistance under this Contract.  

	The Age Discrimination Act of 1975 (Pub. L. 94-135), as amended, and all

requirements imposed by or pursuant to the Regulation of the Department of Health and Human Services (45 CFR Part 91), to the end that, in accordance with the Act and the Regulation, no person in the United States shall, on the basis of age, be denied the benefits of, be excluded from participation in, or be subjected to discrimination under any program or activity for which the Contractor receives Federal financial assistance under this Contract.

	The Americans with Disabilities Act of 1990 (Pub. L. 101-336), as amended, and all requirements imposed by or pursuant to the Regulation of the Department of Justice (28 CFR 35.101 et seq.), to the end that in accordance with the Act and Regulation, no person in the United States with a disability shall, on the basis of the disability, be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination under any program or activity for which the Contractor receives Federal financial assistance under this Contract.

	Title IX of the Education Amendments of 1972, as amended (20 U.S.C. Sections 1681,1683, and 1685-1686), and all requirements imposed by or pursuant to regulation, to the end that, in accordance with the Amendments, no person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination under any program or activity for which the Contractor receives Federal financial assistance under this Contract.

     

The Contractor agrees that compliance with this assurance constitutes a condition of continued receipt of Federal financial assistance, and that it is binding upon the Contractor, its successors, transferees and assignees for the period during which such assistance is provided.  The Contractor further recognizes that the United States shall have the right to seek judicial enforcement of this assurance.

 

53.  Conveyance of Documents and Continuation of Existing Activity

Should the Contract for whatever reason, (i.e. completion of a contract with no renewal, or termination of service by either party), be discontinued and the activities as provided for in the Contract for services cease, the Contractor and any subcontractors employed by the terminating Contractor in the performance of the duties of the Contract shall promptly convey to the State of Indiana, copies of all vendor working papers, data collection forms, reports, charts, programs, cost records and all other material related to work performed on this Contract. The Contractor and the Office shall convene immediately upon notification of termination or non-renewal of the Contract to determine what work shall be suspended, what work shall be completed, and the time frame for completion and conveyance.  The Office will then provide the Contractor with a written schedule of the completion and conveyance activities associated with termination. Documents/materials associated with suspended activities shall be conveyed by the Contractor to the State of Indiana upon five days' notice from the State of Indiana.  Upon completion of those remaining activities noted on the written schedule, the Contractor shall also convey all documents and materials to the State of Indiana upon five days' notice from the State of Indiana.    

54.  Environmental Standards 

If the contract amount set forth in this Contract is in excess of $100,000, the Contractor shall comply with all applicable standards, orders, or requirements issued under section 306 of the Clean Air Act (42 U.S.C. Section 7606), section 508 of the Clean Water Act (33 U.S.C. Section 1368), Executive Order 11738, and Environmental Protection Agency regulations (40 C.F.R. Part 32), which prohibit the use under non-exempt Federal contracts of facilities included on the EPA List of Violating Facilities.  The Contractor shall report any violations of this paragraph to the State of Indiana and to the United States Environmental Protection Agency Assistant Administrator for Enforcement.

55.  Lobbying Activities

Pursuant to 31 U.S.C. Section 1352, and any regulations promulgated thereunder, the Contractor hereby assures and certifies that no federally appropriated funds have been paid, or will be paid, by or on behalf of the Contractor, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress, in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative contract, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan or cooperative contract.  If any funds other than federally appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with this Contract, the Contractor

shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions.

56. Ethics Compliance

The contractor and its agents shall abide by all ethical requirements that apply to persons who have a business relationship with the State, as set forth in Indiana Code Section 4-2-6 et seq., the regulations promulgated thereunder, and Executive Order 04-08, dated April 27, 2004.  If the contractor is not familiar with these ethical requirements, the contractor should refer any questions to the Indiana State Ethics Commission, or visit the Indiana State Ethics Commission website at <<<http://www.in.gov/ethics/>>>.  If the contractor or its agents violate any applicable ethical standards, the State may, in its sole discretion, terminate this contract immediately upon notice to the contractor.  In addition, the contractor may be subject to penalties under Indiana Code Section 4-2-6-12.

Non-Collusion and Acceptance 

The undersigned attests, subject to the penalties for perjury, that he/she is the Contractor, or that he/she is the representative, agent, member or officer of the contracting party, that he/she has not, nor has any other member, employee, representative, agent or officer of the Contractor, directly or indirectly, to the best of his/her knowledge, entered into or offered to enter into any combination, collusion or agreement to receive or pay, and that he/she has not received or paid, any sum of money or other consideration for the execution of this Contract other than that which appears upon the face of this Contract.

The rest of this page is left blank intentionally.

 

In Witness Whereof, Contractor and the State of Indiana have, through duly authorized representatives, entered into this Contract.  The parties having read and understand the foregoing terms of this Contract do by their respective signatures dated below hereby agree to the terms thereof.

Contractor:

By:  /s/ Paul Hobson

 

Name: Paul Hobson

Title:  Executive Director

Date:  November 23, 2004

State of Indiana Agency:

 

Melanie Bella

Assistant Secretary

Family and Social Services Administration

Date:  November 23, 2004

Department of Administration: 

Charles R. Martindale

Commissioner

Date:            

State Budget AgencyOffice of the Attorney General

Marilyn F. SchultzStephen Carter

DirectorAttorney General

Date:Date:

 

Office of the Attorney General

Stephen Carter

Attorney General

Date:

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