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4. RESPONSIBILITY FOR EQUIPMENT <br />American Hot Foods will provide vending machines on the Premises as mutually agreed upon <br />between American Hot Foods and the Executive Director of the Parks, Recreation and <br />Community Services Agency, or his(her designee ("Executive Director"), throughout the <br />term of this Agreement. All machines shall at all times remain the property of American Hot <br />Foods. American Hot Foods will repair and maintain the vendors and agrees to keep the <br />vendors in good working order and condition at all times. American Hot Foods shall have the <br />exclusive right and obligation to repair, replace, or remove any and all vending equipment. <br />City shall not replace, relocate, move or remove any vending equipment. Notwithstanding <br />the foregoing, City agrees to use reasonable efforts to keep the vending machines in clean and <br />sanitary condition, wholly free of all advertising and other City materials, at all times. In <br />addition, City agrees to promptly notify American Hot Foods of any need for repair or <br />service, and to fully cooperate with American Hot Foods in effecting such necessary repairs <br />or service. City shall bear no responsibility whatsoever for any vandalism or theft occurring <br />with regard to American Hot Food's equipment and machines. Further, American Hot Foods <br />shall be responsible for the costs of repair or replacement necessitated by vandalism or theft. <br />Should vandalism occur to the same machine for a second time, City may elect one of the <br />following options: relocate vendor(s); remove vendor(s). American Hot Foods and the <br />Executive Director shall mutually agree on all locations to relocate vending equipment if <br />needed. <br />5. VEND RATES AND COMMISSION <br />Current vend rates and commission rates for the products is set forth in Exhibit A. <br />6. EQUIPMENT PLACEMENTS <br />A detailed list reflecting the proposed placement of all equipment is set forth in Placement <br />List, (attached hereto as Exhibit B and incorporated herein by reference). American Hot <br />Foods shall provide vending machines at all listed locations. Additional vending machines <br />may periodically be added to the list subject to approval of the Executive Director. Should <br />the proposed locations of the vending machines (as set forth in Exhibit B) be found not to be <br />in the best interest of American Hot Foods or the City, both parties must mutually agree as to <br />whether or not to relocate the equipment. If the Executive Director agrees that relocation is <br />necessary, he/she has the authority to exercise discretion as to the most appropriate new <br />location for placement of said equipment on behalf of the City. An updated list evidencing <br />the placement of the vending equipment shall be kept by the Executive Director. A minimum <br />number of 25 vending machines shall be in place, at 11 City approved locations, at all times <br />this Agreement is in effect. <br />7. DEFAULT AND TERMINATION: <br />This Agreement maybe terminated by the non-defaulting party if the other party materially <br />fails to perform or comply with this Agreement or any provision hereof. The non-defaulting <br />party may cancel the Agreement by sending a Cancellation Notice describing the non- <br />compliance to the non-complying parry. Upon receipt of such Cancellation Notice, the non- <br />complying party shall have forty-five (45) days from the date of such notice to cure any such <br />non-compliance. If such non-compliance is not cured within the required forty-five (45) day <br />period, the party providing the Non-Compliance Notice shall have the right to cancel this <br />2 <br />