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4. PAYMENT TERMS <br /> A. Within 15 (fifteen) calendar days after the last day of each month, the Contractor shall <br /> furnish the City a statement for the month showing the amount of gross sales, by machine, the <br /> amount of sales taxes, and the net sales amount. And at the same time the Contractor shall <br /> remit to the City the percentage payment for that month, as specified below. <br /> B. In consideration of the rights and privileges granted under this Agreement, the Contractor <br /> shall pay to the City each month an amount equal to 12 percent of net sales (gross sales less <br /> sales tax). <br /> 5. OBLIGATIONS OF CONTRACTOR <br /> A. The Contractor hereby ab ees to provide vending machines and to maintain and stock <br /> those machines, as per the specific terms of this Agreement, for the duration of this <br /> Agreement. The Contractor shall operate to maximize the sales revenue generated from such <br /> vending machines. The Contractor shall provide this service in accordance with this <br /> Agreement. The Contractor shall provide, install, repair, maintain, stock, operate, etc. <br /> vending machines on City property at the sole expense of the Contractor. <br /> B. The Contractor shall provide and install vending machines in locations designated by the <br /> City. The City shall have the right to limit the number of such machines. The vending <br /> machines provided shall all be newer model machines able to accept and make change for <br /> dollar bills. The Contractor shall keep the vending machines in proper working order and in <br /> good condition and appearance, and shall provide service/repairs within 48 hours of any <br /> request for service or repairs. The Contractor shall,within a reasonable period of time, <br /> remove and replace any vending machine which is not acceptable to the City due to <br /> appearance, condition or possible hazard to the public. <br /> C. The Contractor shall be responsible for stocking the vending machines and keeping them <br /> well supplied with food and beverage items. Unless specifically approved in writing by the <br /> City, the Contractor's vending machines shall only offer for sale food and beverage items. <br /> The Contractor shall control the types of products sold; the City shall have the right to require <br /> the removal of a type of product only when the sale of a product presents a threat to public <br /> health and welfare, or when the sale of a product results in unreasonable costs for the <br /> maintenance of vehicles and facilities. The Contractor shall have control of the brands and <br /> sizes of items sold. The Contractor shall set and control the prices of all items sold by the <br /> vending machines. <br /> D. The Contractor shall be responsible for establishing a reasonable procedure for customer <br /> refunds. A customer service telephone number shall be posted in plain sight on each bank <br /> (group) of vending machines to enable customers and employees to request refunds, to report <br /> machine malfunctions, or to make comments and suggestions. <br /> - 2 - <br />