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INSU~tANC[ N~~ cJ,~! ~!~% <br />WORK MAY _N.JT ~~tQCEEU <br />CLERK QF CC1iiNCtl. <br />DATES zl ~~ ~'°' <br />C . P R~ <br />h <br />~yx,;.~) <br />VENDING AGREEMENT BETWEEN <br />THE CITY OF SANTA ANA AND <br />THE AMERICAN HOT FOODS <br />N-2005-046 <br />-~k <br />This Agreement is made and entered into this ~ day of ~~' 2005, <br />by and between American Hot Foods, a ("American Hot Foods"), and the City of Santa <br />Ana, a charter city and municipal corporation duly organized and existing under the <br />Constitution and laws of the state of California ("City"). <br />RECITALS <br />A. American Hot Foods offers soft drinks, water, isotonics, iced tea and juice and <br />snack products for sale in American Hot Foods-owned vending machines. American Hot Foods <br />desires to place its vending machines at City owned and operated parks and Recreational <br />Facilities ("the Premises', subject to the approval of the Parks, Recreation and Community <br />Services Agency. <br />B. The City has reviewed applications from other vendors, and has determined that <br />the offer from American Hot Foods is the most beneficial to the City. <br />WHEREFORE, in consideration of the mutual and respective promises, and subject to the <br />terms and conditions hereinafrer set forth, the parties hereto do hereby agree as follows: <br />1. TERM <br />The term of this Agreement shall be for a period of five (5) years, commencing on the date <br />set forth above and expiring on the anniversary date in the year 2010, unless earlier <br />terminated by either party as provided herein. As used in this Agreement, the capitalized <br />term "year" shall mean each twelve (12) month period during the term, commencing on the <br />first day or an anniversary thereof. <br />2. EXCLUSNITY/VENDEJG RIGHTS <br />The City hereby grants American Hot Foods the exclusive right to install and maintain soft <br />drink and snack vending machines ("vending machines") throughout the Premises for the <br />term of the Agreement. City agrees to exclusively use American Hot Foods identified soft <br />drink and snack vending equipment on the Premises for such American Hot Foods beverages. <br />3. COMPENSATION <br />American Hot Foods agrees to pay, and City agrees to accept as payment for its granting the <br />exclusive right to install and maintain vending operations on City owned property 25% of <br />gross receipts received from sales of all vending machine products as identified in Exhibit A, <br />Commissions (attached hereto and incorporated herein by reference). In addition, American <br />Hot Foods agrees to provide additional products and services as set forth in the Request for <br />Proposal and response (attached hereto as Exhibit C and incorporated herein by reference). <br />