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(D) As a covenant to this Agreement, Operator agrees to adhere to and comply with all of the terms, conditions and responsibilities enumerated in the Request For Proposals, RFP 04- 129-PRCSA, issue date November 1, 2004, (hereinafter "RFP") attached hereto as Exhibit "B" and incorporated herein by reference. Any failure to adhere to and comply with the terms, conditions and responsibilities enumerated in the Request For Proposal, RFP 04-129-PRCSA shall be deemed a breach of this Agreement and of the RFP. (E) The parties hereto agree that if, at the sole discretion of the City, a Carnival Event should not proceed on the dates set forth in Section 3 hereof due to foul or inclement weather, the City at its discretion may grant Operator alternative dates for the conducting of the Carnival Event within the term of this Agreement. If Operator desires to obtain alternative dates as provided in this paragraph, Operator must timely request the same from City. 2. SCOPE OF SERVICES Operator shall provide at the Park identified in Section 3 hereof a full service Carnival Event complete with the rides, equipment and services as set forth in the RFP (Exhibit B) to this Agreement. 3. FEES/DEPOSITS/PERMITS/LICENSES At least 10 days prior to the commencement date of the Carnival Event as set forth below, Operator shall pay to City the applicable fee for use of the Carnival Area as further set forth below. Operator agrees to pay the City and City agrees to accept from Operator the following fees per Carnival Event. Park/ Carnival Dates Fee Jerome Park June 29, 30, July 1 and $7,000.00 2, 2007 In addition to the fees set forth herein, Operator shall pay all required City fees and deposits including the fees for police services and Park clean up, and obtain all required permits and licenses as detailed in the RFP, Exhibit B hereto. All fees and deposits shall be due and payable as set forth in the RFP. A late charge of 10% shall be applied to the fee amount after any payment is due but unpaid. In addition, an interest charge of one and one-half percent (1 1/2%) per month will be added to for each month that any fee or portion thereof remains due and unpaid. 4. SECURITY DEPOSIT Contemporaneously with the execution of this Agreement, Operator shall deposit with City the additional sum of $5,000.00 as a security deposit. The deposit shall be held by City,