PYRO SPECTACULARS , INC. 2 -2002

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\. ~ INSURAHC[ ,Mm ON filE WORK Mfi\ liQI PROCEED milK OF COUNCil tMTE: '5 ~ 20 -0 a. ~..~sJ t==1 N. I) TH[S AGREEMENT. entered into this 1. (J ib ~ay Of~ California corporation hereinafter referred to as "PYRO" and rity of Sa nta Ana PYRO SPECTACULARS, INC. Display Agreement N_2002-052 oZ--- 20Q.1. by and between PYRO SPECTACULARS, [NC., a hereinafter referred to as "PURCHASER. 2) PYRO agrees to furnish PURCHASER, in accordance with the terms and conditions hereinafter set forth, ---L- fireworks display as per Program ----'L- , submitted, accepted and made part hereof, including the services of a licensed pyrotechnic operator to take charge of and, along with sufficient helpers, safely discharge the display. The said display is scheduled to be performed on J ulv 4, 20QL at Centennial Park. Santa Ana 3) PURCHASER, at its own expense, agrees to provide to PYRO: A) A suitable DISPLAY S[TE in which to stage the fireworks display, including a firing and fallout zone reasonably acceptable to PYRO in which the fireworks and firework debris may be exhibited, rise and fall safely. B) Adequate policing, guard protection, roping, fencing andlor other crowd control measures to prevent the access of the public or its property or any other people or property not authorized by PYRO into the DISPLAY S[TE. C) The services and cost of standby firemen andlor any applicable permit fees as required by state and local statutes, ordinances or regulations. D) Access by PYRO, at all times, to the D[SPLA Y S[TE to set up the display. If PURCHASER fails to fully comply with requirements A, B. C andlor D set forth above, PYRO shall have no obligation to perform and PURCHASER agrees to pay to PYRO the entire contract price plus any additional expenses incurred because of said failure. If, in its sole discretion, PURCHASER designates an area for members of the public to view the Display ("Spectator Area") andlor an area for vehicular parking ("Parking Area"), the PURCHASER shall: E) Ensure that the Spectator Area does not infringe on the Display Area; F) Have sole responsibility for ensuring that the terrain of the Spectator Area and any structures thereon, including, but not limited to grandstands and bleachers are safe for use by spectators; G) have sole responsibility for ensuring that the Parking Area is safe for use; H) Have sole responsibility to police, monitor and appropriately control spectator access to the Spectator Area and the Parking Area and police, monitor and appropriately control the behavior of persons in these areas. It is expressly ab'feed that PYRO, (including its operators and helpers) shall not inspect, police, monitor or otherwise supervise any area of the site other than the Display Area, except to ensure: I) That any Spectator or Parking Areas are outside the Display Area; and J) After completion of the Display, that the Display Area is cleared of any live firework debris originating from the program. 4) PURCHASER shall pay to PYRO the sum of TEN THOUSAND-------------------------------------------DolIars ($ 10.000.00 ). A deposit of $ 0.00 and fire department fees approximated at $ 61.18 must be paid by Julv 5. 2002 . Full fmal payment of $ 10.000.00 is due on the first regular business day after the date set for the display. A finance charge at a periodic rate of 1.5% per month, 18% annual percentage rate, or the maximum rate permitted by law, whichever is less, will be charged on the unpaid balance after ten days from the date of the display. PURCHASER, by signing this agreement, authorizes PYRO to receive and verify fmancial information concerning PURCHASER from any person or entity. 5) PURCHASER agrees to assume the risk of weather, or other causes beyond PYRO's control, which may prevent the display from being safely discharged on the scheduled date, which may cause the cancellation of any event for which PURCHASER has purchased the display, or which may affect or damage such portion of the exhibits as must be placed and exposed a necessary time before the display. [t shall be within PYRO's sole discretion to determine whether or not the display may be safely discharged on the scheduled date and at the scheduled time. If, for any reason beyond PYRO's control, including, without limitation, inclement weather, PYRO is unable to safely discharge the display on the scheduled date or should any event for which PURCHASER has purchased the display be cancelled, the parties shall attempt to negotiate a new display date, which shall be within 60 days of the original display date. PURCHASER further agrees to pay PYRO for any additional expenses made necessary by this postponement. [fthey are unable to agree on a new display date, PYRO shall be entitled to liquidated damages from PURCHASER as if PURCHASER had cancelled the display on the date set for the display, as provided in the following paragraph. 6) PURCHASER shall have the option to unilaterally cancel this display prior to the date of the display. If PURCHASER exercises this option, PURCHASER agrees to pay to PYRO, as liquidated damages. the following percentages of the agreed contract price. I) 25% if cancellation three (3) or more days prior to the scheduled day of the display, 2) 50% if cancellation occurs within two (2) days of the actual date set for the display, 3) 75% if cancellation occurs on the date set for the display but prior to the time physical set-up ofthe display actually begins, 4) 100% thereafter. If cancellation occurs prior to the date set forthe display, PURCHASER agrees to pay PYRO in addition to the above percentages, the value associated with any specific custom work performed by PYRO or its agents including but not limited to music/narration tape production andlor Sponsors logos. (continued on reverse)