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VENDING AGREEMENT BETWEEN <br />THE CITY OF SANTA ANA AND <br />AUTOMATED VENDING TECHNOLOGIES, INC. <br />This Agreement is made and entered into this 1St day of July, 2013, by and <br />between Automated Vending Technologies Inc., a Nevada corporation dba in California <br />as Automated Vending Inc. ( "Vendor "), and the City of Santa Ana, a charter city and <br />municipal corporation duly organized and existing under the Constitution and laws of the <br />state of California ( "City "). <br />RECITALS <br />A. On April 11, 2013, the City issued a Request for Proposals (RFP 13 -011 PRCSA) <br />for a vending company to provide twenty -two (22) beverage and /or snack vending <br />machines at various City -owned properties. <br />B. The City received responsive proposals from three vending companies. Upon <br />review of said proposals and rating through an evaluation committee, the City has <br />determined that the Vendor's proposal is the most beneficial to the City. <br />C. Vendor offers soft drinks, water, iced tea, juice and snack products for sale in <br />Vendor -owned vending machines. Vendor desires to place its vending machines <br />at various agreed upon City -owned and operated facilities ( "the Premises "). <br />D. Vendor ensures that no less than fifty percent (50 %) of the food and beverages <br />provided in all vending machines located on the Premises will be of a healthy <br />variety in compliance with the City's policy regarding healthy snacks in vending <br />machines at City -owned facilities. <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 an initial term of one (1) year, commencing on <br />the date set forth above and expiring on the anniversary date in the year 2014, unless <br />earlier terminated by either party as provided herein. There shall be the option of <br />extending the Agreement for five (5) additional one -year terms, exercisable by the <br />Executive Director of Parks, Recreation and Community Services ( "Executive Director "). <br />2. EXCLUSIVITY/VENDING RIGHTS <br />The City hereby grants Vendor the exclusive right to install and maintain their soft drink <br />and snack vending machines ( "vending machines ") throughout the Premises for the term <br />of this Agreement. City agrees to exclusively use Vendor identified soft drink and snack <br />vending machines on the Premises. <br />25A -3 <br />