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condition at all times. AVT shall have the exclusive right and obligation to repair, <br />replace, or remove any and all vending equipment. City shall not replace, relocate, move <br />or remove any vending equipment. Notwithstanding the foregoing, City agrees to use <br />reasonable efforts to keep the vending machines in clean and sanitary condition, wholly <br />free of all advertising and other City materials, at all times. In addition, City agrees to <br />promptly notify AVT of any need for repair or service, and to fully cooperate with AVT <br />in effecting such necessary repairs or service. City shall bear no responsibility <br />whatsoever for any vandalism or theft occurring with regard to American Hot Food's <br />equipment and machines. Further, AVT shall be responsible for the costs of repair or <br />replacement necessitated by vandalism or theft. Should vandalism occur to the same <br />machine for a second time, City may elect one of the following options: relocate <br />vendor(s); remove vendor(s). AVT and the Executive Director shall mutually agree on <br />all locations to relocate vending equipment if needed. <br />5. VEND RATES AND COMMISSION <br />Current vend rates and commission rates shall be as approved in writing from time to <br />time by the Executive Director of Parks, Recreation and Community Services Agency, or <br />his/her designee ( "Executive Director "). Automated Vending Technologies (AVT) shall <br />maintain all vending machines stocked at 50% Healthy Foods per the City's Healthy <br />Vending Policy as determined by the Executive Director from time to time. <br />6. EQUIPMENT PLACEMENTS <br />A detailed list reflecting the proposed placement of all equipment is set forth in <br />Placement List, (attached hereto as Exhibit B and incorporated herein by reference). <br />AVT shall provide vending machines at all listed locations. Additional vending <br />machines may periodically be added to the list subject to approval of the Executive <br />Director. Should the proposed locations of the vending machines (as set forth in Exhibit <br />B) be found not to be in the best interest of AVT or the City, both parties must mutually <br />agree as to whether or not to relocate the equipment. If the Executive Director agrees <br />that relocation is necessary, he /she has the authority to exercise discretion as to the most <br />appropriate new location for placement of said equipment on behalf of the City. An <br />updated list evidencing the placement of the vending equipment shall be kept by the <br />Executive Director. A minimum number of 25 vending machines shall be in place, at 1 1 <br />City approved locations, at all times this Agreement is in effect. Two (2) vending <br />machines currently located at the Santa Ana Public Library, "Main Library ". <br />7. DEFAULT AND TERMINATION: <br />This Agreement may be terminated by the non - defaulting party if the other party <br />materially fails to perform or comply with this Agreement or any provision hereof. The <br />non - defaulting party may cancel the Agreement by sending a Cancellation Notice <br />describing the non - compliance to the non - complying party. Upon receipt of such <br />Cancellation Notice, the non - complying party shall have forty -five (45) days from the <br />date of such notice to cure any such non - compliance. If such non - compliance is not <br />cured within the required forty -five (45) day period, the party providing the Non- <br />compliance Notice shall have the right to cancel this Agreement. The rights of <br />2 <br />