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