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INSURANCE 8N FILE <br />WORK MAY PROCEED <br />UNTIL INSURANCE EXPIRES N- 2010 -093 <br />S-3 - // <br />CLERK OF COUNCIL <br />DATE: $EP 1 4 2Q'RAI VENDING AGREEMENT BETWEEN <br />O: PRCS (� ) THE CITY OF SANTA ANA AND AVT VENDING, INC. <br />Silvia Cuevas <br />This Agreement is made and entered into this 15L day of July 2010, by and <br />between AVT Inc. a Nevada corporation dba in California as AVT Vending Inc. <br />( "AVT "), and the City of Santa Ana, a charter city and municipal corporation duly <br />organized and existing under the Constitution and laws of the state of California ( "City "). <br />RECITALS <br />A. AVT offers soft drinks, water, isotonics, iced tea and juice and snack products for <br />sale in AVT -owned vending machines. AVT desires to place its vending <br />machines at City owned and operated parks and Recreational Facilities ( "the <br />Premises "). <br />B. The City has reviewed applications from other vendors, and has determined that <br />the offer from AVT 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 hereinafter 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 one (1) yeaz, commencing on the date <br />set forth above and expiring on the anniversary date in the yeaz 2011, unless earlier <br />terminated by either party as provided herein. <br />2. EXCLUSIVITY/VENDING RIGHTS <br />The City hereby grants AVT the exclusive right to install and maintain soft drink and <br />snack vending machines ( "vending machines ") throughout the Premises for the term of <br />the Agreement. City agrees to exclusively use AVT identified soft drink and snack <br />vending equipment on the Premises for such AVT beverages. <br />3. COMPENSATION <br />AVT agrees to pay, and City agrees to accept as payment for its granting the exclusive <br />right to install and maintain vending operations on City owned property 25% of gross <br />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, AVT <br />agrees to provide additional products and services as set forth in the Request for Proposal <br />and response (attached hereto as Exhibit C and incorporated herein by reference). <br />4. RESPONSIBILITY FOR EQUIPMENT <br />AVT will provide vending machines on the Premises as mutually agreed upon between <br />AVT and the Executive Director of the Parks, Recreation and Community Services <br />Agency, or his /her designee ( "Executive Director "), throughout the term of this <br />Agreement. All machines shall at all times remain the property of AVT. AVT will repair <br />and maintain the vendors and agrees to keep the vendors in good working order and <br />