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3. COMPENSATION Vendor agrees to pay, and City agrees to accept as payment for its granting the exclusive right to install and maintain vending operations on City-owned property, thirty percent (30%) of gross receipts received from sales of all vending machine products as identified in Exhibit A, Commissions (attached hereto and incorporated herein by reference) from the machines installed at the City Yard, the Santa Ana Regional Transportation Center, Library and at the Parks and Recreation Centers. At the Police Facility, City Hall and City Yard administration building, the product will be sold at a lower price with no commission. In addition, Vendor agrees to provide additional products and services as set forth in the Request for Proposal and Vendor's responsive proposal (attached hereto as Exhibit C and incorporated herein by reference). 4. RESPONSIBILITY FOR VENDING MACHINES Vendor will provide vending machines on the Premises as mutually agreed upon between Vendor and the Executive Director throughout the term of this Agreement. All vending machines shall at all times remain the property of Vendor. Vendor will repair and maintain the vending machines and agrees to keep them in good working order and condition at all times. Vendor shall have the exclusive right and obligation to repair, replace, or remove any and all vending machines. City shall not replace, relocate, move or remove any vending machines. Notwithstanding the foregoing, City agrees to use reasonable efforts to keep the vending machines in clean and sanitary condition, wholly free of all advertising at all times. In addition, City agrees to promptly notify Vendor of any need for repair or service, and to fully cooperate with Vendor in effecting such necessary repairs or service. City shall bear no responsibility whatsoever for any vandalism or theft occurring with regard to Vendor's equipment and vending machines. Further, Vendor shall be responsible for the costs of repair or replacement necessitated by vandalism, graffiti or theft. Should vandalism occur to the same vending machine for a second time, City may elect one to either relocate or remove said vending machine. Vendor and the Executive Director shall mutually agree on all locations to relocate vending machines if needed. 5. VEND RATES AND COMMISSION Current vending rates and commission rates shall be as approved in writing from time to time by the Executive Director. Vendor shall maintain all vending machines stocked with at least 50% healthy foods, such as such as baked chips, fruit, pretzels, granola, nuts, bottled water, low fat milk products, sports drinks and natural fruit juice drinks in compliance with the City's policy regarding healthy snacks, healthy eating and active living (City of Santa Ana Resolution No. 2006-053 and Resolution No. 2011-003). 6. VENDING MACHINE PLACEMENT A detailed list reflecting the proposed placement of all vending machines and equipment is set forth in Placement List, (attached hereto as Exhibit B and incorporated herein by 2 25A-4