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HomeMy WebLinkAboutContract 2006 -1J1a (o AGREEMENT FOR BOOKING AND MANAGEMENT SERVICES BY AND BETWEEN THE CITY OF CATHEDRAL CITY, LOCATIONS 760 This Agreement for Booking and Management Services ("Agreement") is entered into as of this 11th day of May, 2022 ("Effective Date") by and between the City of Cathedral City, a California Charter ("City"), Locations 760, a California sole proprietorship, hereinafter referred to as "Service Provider"). City and Service Provider are sometimes hereinafter individually referred to as "Party" and hereinafter collectively referred to as the "Parties." RECITALS WHEREAS, City is the owner of certain improved real property known as the Cathedral City Community Amphitheater, located in Cathedral City, County of Riverside, State of California, which is more particularly described on Exhibit "A" attached hereto and incorporated herein by reference ("Property" or "Amphitheater"); and WHEREAS, the City has sought the performance of the services defined and described particularly in Section 2 of this Agreement; and WHEREAS, Service Provider was selected through direct negotiation by the City to perform those services. WHEREAS, it is the intent of the Parties that Service Provider will I market the Amphitheater to potential Amphitheater Clients, handle the booking of Events for Amphitheater Clients procured by Service Provider, and, in coordination with the City, will assist in having Amphitheater Clients execute the appropriate contract(s) between the City and Amphitheater Clients and will oversee the Events of Amphitheater Clients booked by Service Provider. WHEREAS, it is understood by Service Provider that it is not the exclusive booking agent for the Amphitheater, that City has retained the services of another booking agent that will be marketing and booking additional Amphitheater Clients and will be responsible for managing the Events of Amphitheater Clients that were procured by that other booking agent. WHEREAS, it is also understood by Service Provider that City may, but is not obligated to, from time to time, receive leads from potential Amphitheater Clients ("City Leads"), and that City will provide City Leads to each Service Provider on an alternating basis. 1 RIV#4895-6539-0626 v1 OPERATIVE PROVISIONS NOW, THEREFORE, in consideration of the mutual promises and agreements made by the Parties and contained herein and for other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows: SECTION 1. DEFINITIONS (a) "Amphitheater Client" means an individual, business, for-profit entity, which is obtained, procured and scheduled by Service Provider and is granted use of the Amphitheater for an Event or Event Day which may be open to the general public or exclusive to a private audience. Solely for the purposes of this Agreement, Amphitheater Client shall not include any non-profit or charitable organization duly organized under California and/or federal law (including any IRC section 501(c) organization) that has not contacted the Service Provider directly. The City, any City department, or any instrumentality or agency of the City retains the right to obtain, procure, schedule and manage its own events and not-for-profit community events. (b) "City Liaison" means the City Manager or his or her designee, who will administer the Agreement for the City and who will interface with Service Provider to facilitate open communication between the Parties with respect to the booking and management of the Amphitheater. (c) "City Marks" shall mean any name or mark that (1) contains, in whole or part, name(s) and/or mark(s) (including service marks, trademarks, names, titles, descriptions, slogans, insignias, emblems or logos) of the City of Cathedral City; or (2) imparts the color of authority of the City of Cathedral City. City Marks shall not include the official Seal of the City of Cathedral City. (d) "Event" means any activity that occurs at Amphitheater whether open to the general public or exclusive to a private audience. (e) "Event Days" means any day in which Amphitheater is in use for any purpose to support any type of an Event. This includes but is not limited to, rehearsal, technical staging of lights and sound, set up and strike of stage and actual performance days. For the avoidance of doubt an Event Day shall include days, which cannot be rented to other Amphitheater Client(s) that are work days used to support a coming Event. Notwithstanding the foregoing, rehearsals or similar activities are not deemed to be an Event but are deemed to be Event Days. (f) "Performing Artist" means any individual or group who perform any of a wide range of performance disciplines including, without limitation to, a play, musical, dance or similar performance Event for an audience at Amphitheater. 2 RIV#4895-6539-0626 v1 SECTION 2. GENERAL SCOPE; ENGAGEMENT OF SERVICE PROVIDER The City hereby engages Service Provider to promote and book Performing Artists the Cathedral City Community Amphitheater subject to the terms and conditions of this Agreement and Service Provider hereby accepts such engagement. SECTION 3. SERVICE PROVIDER SCOPE OF SERVICES (a) Scope of Services. Service Provider shall provide for the management and operation of Amphitheater as set forth in Exhibit "B" [Scope of Services]. (b) Changes to the Scope of Services. Parties may modify the Services by mutual agreement, in writing signed by the duly authorized representative of each Party. SECTION 4. MUTUAL OBLIGATIONS The Parties shall work together to review issues and other matters related to the smooth, orderly and efficient booking and management of the Amphitheater. The Parties shall develop a proposed plan for remediation of any such issues. Service Provider agrees to work in good faith to ensure that the City obtains the best fee for each booked Event. Each Service Provider agrees that they will not, directly or indirectly, take any action to solicit, initiate, encourage, or assist prospective Amphitheater Clients in quotation / price shopping, deception or manipulation of the Parties, collusion with a Party, or other practices seeking to gain an unfair advantage over the City. SECTION 5. BILLING AND PAYMENT (a) Invoice. Service Provider shall provide an invoice to the City detailing charges for work performed within thirty (30) days after the completion of an Event. (b) Payment. City shall pay Service Provider one thousand dollars ($1,000.00) for each completed Event that generates at least two thousand five hundred dollars ($2,500.00) but no more than five thousand dollars ($5,000.00) in revenue. Further, City shall pay Service Provider twenty percent of the revenue received for each completed Event that generates five thousand and one dollars ($5,001.00) or more. No compensation shall be provided for Events that generate less than two thousand five hundred dollars ($2,500.00) in revenue. Payment for all services shall be due to Service Provider within thirty (30) days of City's receipt of required invoice. (c) Fee Disputes. In the event the City disputes any particular item or amount on an invoice, City shall provide Service Provider with written notice within seven (7) days of receipt of the invoice, stating the particulars of the dispute. The Parties shall mutually cooperate to resolve any such disputes in good faith and by mutual agreement. All items not in dispute shall be paid as provided for above. 3 RIV#4895-6539-0626 v1 SECTION 6. EXPENSES PAID BY SERVICE PROVIDER The Service Provider's business and travel expenses are to be paid by the Service Provider and not by the City. SECTION 7. CITY MARKS (a) Use of City Marks. During the term of this Agreement, and subject to the terms and conditions of this Agreement, the City grants to Service Provider a limited, non-exclusive, non-transferable, worldwide, royalty free license to use the City Marks, as defined in Section 1 , in connection with the operation and promotion of the Amphitheater and for the purposes of fulfilling Service Providers obligations under this Agreement (each a "Licensed Use" or collectively, the "Licensed Uses"). No other or different rights are granted hereunder to Service Provider and Service Provider shall have no right to use any of the City Marks apart from the Licensed Uses. Other than the express licenses granted herein with respect to the City Marks, nothing herein will grant Service Provider any other right, title or interest in the City Marks, which are reserved by the City. (b) Conditions of Use. Service Provider agrees that the City Marks will always be reproduced as shown in Exhibit "C" [City Marks] in their entirety with no alterations, obstructions or modifications. Service Provider agrees that it will comply with any additional trademark usage and guidelines that City may communicate to Service Provider from time to time. Service Provider shall be required to obtain written approval of City Liaison prior to each use of the City Marks on any products, materials, or premiums designed, manufactured, marketed or sold under or pursuant to this Agreement or in connection with any marketing or promotional materials under this Agreement provided such use: (i) is a Licensed Use and (ii) the appearance (e.g. form, color, type, style, orientation, etc.) of the City Marks is unaltered. SECTION 8. TERM OF AGREEMENT Subject to the provisions of Section 17 "Termination" of this Agreement, the initial term of this Agreement shall be for a period of two (2) years commencing on the Effective Date first ascribed above. This Agreement shall renew automatically for a subsequent one (1) year term unless either Party provides written notice of nonrenewal at least ninety (90) days before the end of the initial term. SECTION 9. SERVICE PROVIDER REPRESENTATIONS (a) Standard of Performance. Service Provider shall perform services with the degree, skill and care observed by national firms performing the same or similar services. (b) Compliance with Laws. Service Provider shall use the standard of care in its profession to comply with all applicable federal, state, and local laws, codes, ordinances, and regulations. Service Provider represents and warrants to City that it 4 RIV#4895-6539-0626 v1 has and shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, insurance and approvals which are legally required for Service Provider to practice its profession. (c) No Discrimination. Service Provider shall not discriminate, in any way, in the employment of persons to perform the Services in violation of any federal or state law prohibiting discrimination in employment, including based on the race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, of any person, except as provided under California Government Code Section 12940. (d) Independent Contractor. Service Provider is not to be considered an agent or employee of City for any purpose, and neither Service Provider nor any employees of Service Provider are entitled to any of the benefits that City provides for City's employees. It is understood that Service Provider is free to contract for similar services to be performed for other cities, persons or entities during the term of the Agreement. Service Provider shall be fully responsible for all income, social security or other taxes or deductions relating to the services it performs for City. SECTION 10. CITY REPRESENTATIONS (a) Authority. City represents and warrants that it owns and controls the Amphitheater. City has the authority to enter into this Agreement with Service Provider for the booking, management and operation of the Amphitheater and for the production of entertainment, performing arts, school and community events. (b) Maintenance and Repair of the Amphitheater. City shall maintain, or cause to be maintained the buildings, appurtenances and grounds of the Amphitheater in substantial compliance with applicable laws, statutes, ordinances and regulations in accordance with commercial reasonable standards, including such maintenance as, without limitation thereof, electrical and plumbing, equipment, carpentry, and such other normal maintenance and repair work as may be reasonably necessary. (c) Acknowledgment of Risk. City acknowledges that the production and promotion of Events in the entertainment and cultural arts industry have associated inherent risks, which include but are not limited to financial and other general liabilities. Both Parties also acknowledge that a decision to produce entertainment, recreation, cultural Events, or any specific Event, may at times be made by City for reasons other than financial profit potential and that at times City may elect to produce Events which will require financial subsidy in order to achieve other community service objectives. SECTION 11. EXCLUSIVE PEPSI BEVERAGE AGREEMENT During the term of this Agreement, Service Provider shall notify all Amphitheater Clients and vendors of the City's Beverage Agreement with Pepsi Co., attached hereto as Exhibit "D". All Amphitheater Clients and vendors booked through Service Provider shall purchase soda products and other covered beverages using the City's account 5 RIV#4895-6539-0626 v1 code per the City's Beverage Agreement with Pepsi, where applicable. All rebates earned for sale of covered beverages made on the Property will be paid to City and Service Provider shall not have claim to these funds. SECTION 12. CONCESSIONAIRE AGREEMENT During the term of this Agreement, Service Provider shall notify all Amphitheater Clients and vendors of the City's Concessionaire Agreement with Kick Back Cinemas, LLC, attached hereto as Exhibit "E" where applicable. SECTION 13. PERSONAL SERVICES NOT REQUIRED (a) Employees. Service Provider shall have sole responsibility and authority in the selection, hiring, compensation, benefits, training, supervision, discipline and/or discharge of all Service Provider employees. For all purposes, all Service Provider employees shall be deemed to be only employees of Service Provider and not the City. In the event that City requests or requires training unique to the City, City shall reimburse Service Provider for costs associated with employee time and expenses of employees to attend such training. (b) No Co-Employment. In consideration of the liabilities that may accrue to a co-employer, Parties agree that they shall not be co-employers. Service Provider employee(s) assigned to work at the Amphitheater shall work exclusively for Service Provider. City shall have no authority in the selection, hiring, compensation, benefits, supervision, discipline and/or discharge of any employee of Service Provider. City Project Liaison and or City personnel shall not direct Service Provider employees. SECTION 14. NO SET WORK HOURS The Service Provider has no set hours of work. There is no requirement that the Service Provider work full time or otherwise account for work hours. SECTION 15. SOCIAL MEDIA; OWNERSHIP OF SOCIAL MEDIA CONTACTS Service Provider may, in fulfillment of the obligations set forth in this Agreement, create and/or use social media accounts (including, but not limited to email addresses, blogs, Twitter, Facebook, YouTube, or other social media networks) for the promotion of the Amphitheater. City reserves the right to amend, limit and/or terminate Service Provider's authority to use social media accounts promoting the Amphitheater at any time. Service Provider shall not have access to City controlled social media accounts. Any social media contacts, including "followers" or "friends" that are acquired through accounts created by the Service Provider (including, but not limited to email addresses, blogs, Twitter, Facebook, YouTube, or other social media networks) used in promotion of the Amphitheater are the property of the Service Provider. 6 RIV#4895-6539-0626 v1 SECTION 16. INDEMNITY To the fullest extent permitted by law, the Parties shall defend, indemnify, and hold harmless each other and their respective officers, elected officials, employees, agents, and volunteers (collectively "Indemnitees") from and against any and all claims, loss, cost, damage, injury, expense and liability of every kind, nature and description (including, without limitation, fines, penalties, incidental and consequential damages, reasonable court costs and attorneys' fees, litigation expenses and fees of expert consultants or expert witnesses incurred in connection therewith, and costs of investigation), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by the Parties. Neither termination of this Agreement nor completion of the services shall release the Parties from their obligations under this Agreement, as long as the event giving rise to the claim, loss, cost, damage, injury, expense or liability occurred prior to the effective date of any such termination or completion. SECTION 17. TERMINATION (a) City Termination. City may terminate this Agreement, with or without cause, at any time by giving thirty (30) days written notice of termination to Service Provider. In the event such notice is given, Service Provider shall cease immediately all work in progress. (b) Suspension. City may temporarily suspend this Agreement, at no additional cost to City, provided that Service Provider is given written notice of temporary suspension. If City gives such notice of temporary suspension, Service Provider shall immediately suspend its activities under this Agreement. A temporary suspension may be issued concurrent with the notice of termination provided for in this Section. (c) Service Provider Termination. Service Provider may terminate this Agreement for cause at any time upon thirty (30) days written notice of termination to City. (d) Performance of Material Obligations. If either Service Provider or City fail to perform any material obligation under this Agreement, then, in addition to any other remedies, either Service Provider, or City may terminate this Agreement immediately upon written notice. (e) Final Invoice. Upon termination of this Agreement by either Service Provider or City, all property belonging exclusively to City which is in Service Provider's possession shall be returned to City. Design Professional shall furnish to City a final invoice for work performed by Service Provider, as set forth in Section 5 of this Agreement. This final invoice shall be reviewed and paid in the same manner as set forth in Section 5 of this Agreement. 7 RIV#4895-6539-0626 v1 SECTION 18. EFFECT OF TERMINATION (a) Records and Executory Contracts. Upon termination of this Agreement, for any reason, all of the records in the Service Provider's possession pertaining to the operation of the Amphitheater, together with the supplies, equipment, or other property of the City in Service Provider's possession shall be delivered to the City. (b) Booking Contracts. Upon termination of this Agreement, all duties and obligations of Service Provider with respect to negotiation and booking of an Event shall cease. In no event shall City have the right to reduce or deduct any of the fees due to Service Provider under the terms and conditions of this Agreement. SECTION 19. ASSIGNMENT Service Provider shall not assign, delegate, or transfer any interest in this Agreement nor the performance of any Service Provider's obligations hereunder, without the prior written consent of the City. SECTION 20. NOTICES All notices and other communications required or permitted to be given hereunder shall be in writing and shall be sent by: (a) certified or registered mail, postage prepaid, return receipt requested, (b) personal delivery, or (c) a recognized overnight carrier that provides proof of delivery, and shall be addressed as follows: If to City: If to Service Provider: City of Cathedral City Locations 760 Attn: City Manager Attn: Richard "Kip" Serafin 68700 Avenida Lalo Guerrero 1775 E. Palm Canyon Drive Cathedral City, California 92234 Suite 110-250 Palm Springs, California 92264 Notices shall be deemed effective upon receipt or rejection only. SECTION 21. LAW TO GOVERN; VENUE This Agreement shall be governed by the laws of the State of California. In the event of litigation between the Parties, venue in state trial courts shall take place in the Superior Court of the State of California for the County of Riverside, or if in federal court the United States District Court for the Central District of California, Eastern Division. SECTION 22. AMENDMENT Any amendment to this Agreement will be effective only if it is in writing signed by all Parties to this Agreement. 8 RIV#4895-6539-0626 v1 SECTION 23. OWNERSHIP OF DOCUMENTS All plans, studies, documents and other writings, including working notes and internal documents, prepared by and for Service Provider, its officers, employees and agents and sub-Service Providers in the course of implementing this Agreement, shall become the property of City upon payment to Service Provider, and City shall have the sole right to use such materials in its discretion without further compensation to Service Provider or to any other Party. Service Provider shall, at Service Provider's expense, provide such reports, plans, studies, documents and other writings to City upon written request. All documents prepared by Service Provider are confidential and shall be maintained to preserve their confidential nature. Release of any such documents to third parties shall only be made upon written consent of City. SECTION 24. WAIVER Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement. SECTION 25. SEVERABILITY If any term, condition or covenant of this Agreement is declared or determined by any court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall not be affected thereby and the Agreement shall be read and construed without the invalid, void or unenforceable provision(s). SECTION 26. ENTIRE AGREEMENT This Agreement constitutes the entire agreement of the Parties with respect to the matters set forth herein. Any amendments, modifications, or changes to this Agreement shall be in writing and signed by both Parties. [Signatures on Following Page] 9 RIV#4895-6539-0626 v1 CITY OF CATHEDRAL CITY: LOCATIONS 760 By: Y� By: '` 0 AIW:�. harles P. McClendon , , gL � City Manager Its: By: Its: Approved as to form: BURKE, WILLIAMS & SORENSEN, LLP By: Eric S. Vail, City Attorney 10 RIV#4895-6539-0626 v1 EXHIBIT "A" DEPICTION OF PROPERTY Cathedral City Community Amphitheater 68-526 Avenida Lalo Guerrero, Cathedral City, CA 92234 Located on the Northeast corner of Cathedral Canyon Drive and Avenida Lalo Guerrero R -_ _ . : . :.,. ` 1 \\‘, :.* . i- . .\.,. v, \ Y, • .. ,. . . s ,,,,_ \.,,,60 fly ', '0,' \,,' -u ',.. .. et.. • h • �,. . r, < ; #• t. Nov-- r• . ' 1 4 11 RIV#4895-6539-0626 v1 EXHIBIT "B" SCOPE OF SERVICES Development of Booking and Marketing Systems: 1) Develop and establish a professional booking and marketing system designed to provide for the on-going administration of the Amphitheater subject to the terms and conditions of the Agreement. Amphitheater Management and Consultation: 1) Represent the City of Cathedral City with regard to the use of the Amphitheater by potential Amphitheater Clients for the production of private events. 2) Assist in the management, upon consultation with the City Liaison, of the master calendar of Events for Amphitheater including, but not limited to, performance, rehearsal, technical and production needs for private Events or those others designated by City. 3) Confirm whether the Amphitheater Clients would like operation of Concession Stand by Kickback Cinemas, LLC during an Event. Marketing and Business Development: 1) Business development and marketing for the Amphitheater operation including the development of technical specification brochures, sales materials, website, on-line marketing strategies, social media and other required collateral materials, in coordination with City. Coordination, Planning and Communication with City: 1) Recommend operating budgets, programming models, rental rates, operating policies, business strategies and changes to the Business Plan, where necessary, to the City. Final approval shall be provided by the City Council. 2) Coordinate all reporting requirements for the City Council and the City Manager through the City Liaison. 3) Meet regularly with the City Liaison. 12 RIV#4895-6539-0626 v1 EXHIBIT "C" CITY MARKS lit Cathedral City /'1 Cathedral City hCATHEDRAL CITY COMMUNITY ..------. AMPHITHEATER EXHIBIT "D" PEPSI BEVERAGE AGREEMENT 14 RIV#4895-6539-0626 v1 PEPSI BEVERAGES COMPANY BEVERAGE SALES AGREEMENT This sets forth the agreement ("Agreeaaenf')between Bottling Group,LLC, a Delaware limited liability company, and its affiliates and/or respective subsidiaries collectively comprising Pepsi Beverages Company with an office located at 6659 Sycamore Canyon Blvd., Riverside, CA 92507 ("Pepsi") and Cathedral City, with its principal place of business at 68700 Avenue Lalo Guerrero, Cathedral City, CA 92234 on its own behalf, on behalf of its affiliates and wholly- owned subsidiaries, and on behalf of its individual franchisees and licensees, if any (the "Customer"). The support described below is in lieu of any other discounts, allowances or rebates to which the Customer might otherwise be entitled from time to time. When fully executed, this Agreement will constitute a binding obligation of both parties until expiration or to minstion.Pepsi and Customer are sometimes hereinafter individually referred to as"Party"or hereinafter collectively referred to as the"Parties." Definitions As used in this Agreement, the following capitalized terms have the respective meanings assigned thereto below. "Beverage" or "Beverages" means all carbonated and non-carbonated, non-alcoholic drinks, however dispensed during the Tenn of the Agreement "Beverage" or "Beverage." excludes bottled water,alcoholic beverages and cannabis infused beverages. "Cases" means cases of Packaged Products (as defined herein) purchased by Customer from Pepsi during the Term,initially delivered in quantities of 24 plastic bottles,aluminum cans,glass bottles(or equalized 24 pack cases,e.g., two 12-pack cases), eight 2-liter plastic bottles, or such other size,quantity and type of containers as Pepsi may make available from time to time during the Term. "Competitive Products"means any and all Beverages other than the Products. "Equi menr means equipment loaned by Pepsi to Customer to dispense, store or cool Products (as defined below),as more fully described in Section 4 herein. "Gallons"means gallons of the Postmix Products purchased by Customer from Pepsi during the Term. "Outlets" means existing,ng, future and after-acquired (provided not already under a pre-existing beverage agreement with Pepsi) outlets owned, operated, managed, leased or franchised by Customer under the Cathedral City trademark[s]as listed in attached Exhibit A(and any related or similar trademarks, including any successor trademarks) including the parking garages or other Comer-owned/controlled/operated surrounding areas located at or within those facilities and shall include any outlet or other facility in Customer's system that may be opened or acquired by Customer now or in the future, including under different concept and/or trademark during the Term.This excludes beverages within City Hall,and City park properties or facilities, #6575-1 PEPSI BEVERAGES COMPANY unless the Parties mutually agree to identify additional Outlets in an updated Exhibit A. "Packaged Products" means Beverages that are sold or distributed by Pepsi in pro-packaged form (e.g., bottles and cans). A current list of Pepsi's Packaged Products is listed in attached Exhibit B which may be amended by Pepsi from time to time. "Posy Prodxds" means Beverages sold and/or distributed by Pepsi and used to create and prepare fountain beverages, frozen carbonated or non-carbonated beverages. A current list of Pepsi's Postmix Products is listed in attached Exhibit B which may be amended by Pepsi from time to time. "Products"means Postmix Products,and Packaged Products. "Year(s)" means each 12-month period during the Term commencing on the first day of the Term or an anniversary thereof. 1. Term The term of this Agreement will commence on December 15,2019 and the term will expire upon the later of five(5)Years or at such time as Customer's collective purchases of Products meets or exceeds a volume threshold (the "Voimare Threshold's of 12,250 Cases (the "Term") or if terminated pursuant to Section 6(B)of this Agreement Thus,in the event the Volume Threshold is not met on or before the date indicated above,then the Term will automatically extend for the period of time necessary umtil the Volume Threshold has been met(the"Automatic RI tension"). Except for applicable Rebates,which may be earned during the Automatic Extension,Pepsi will not provide any other funding to Customer. 2. Performance This Agreement, including all of Pepsi's support to Customer as described below, is contingent upon Customer complying,throughout the Term,with all of the following performance criteria: (A) Exclusivity. Pepsi is the exclusive Beverage supplier to Customer's Outlets. Customer agrees to take all necessary steps to ensure that the Products are the exclusive Beverages of their respective types sold, dispensed or otherwise made available, or in any way advertised, displayed, represented or promoted at or in connection with the Outlets by any method or through any medium whatsoever (including without limitation print, broadcast, direct mail, coupons,handbills,displays and signage),whether public or private. The Outlets will not serve, dispense or otherwise make available or permit the availability of, or in any way advertise, display, represent or promote, Beverage products licensed by, or produced by bottlers licensed by, The Coca-Cola Company or any affiliate thereof, or any other supplier of Competitive Products. (B) Purchase of Products. Customer agrees to purchase, and require its Outlets and purchasing representatives to purchase,Beverage Products exclusively and directly from Pepsi. #6575-1 440 PEPSI BEVERAGES COMPANY (C) Fountain Products. Customer agrees to use the Postmix Products for use in preparing the fountain beverage products (the"Fountain Products": (i)in accordance with the standards established by Pepsi and(ii)only for immediate or imminent consumption;Customer agrees not to resell the Postmix Products either to nonaffiliated outlets or to consumers in any form other than the Fountain Products. (D) Ancillary Product Customer agrees to purchase, and require its purchasing representatives to purchase all their respective requirements for carbon dioxide and branded disposable cups("Ancillary Products")exclusively from Pepsi. (E) Advertising Rights. Pepsi may advertise and promote its Products in and with respect to Customer and its Outlets upon mutually agreed to tams and conditions. In addition, Customer must display appropriate brand identification for each Product served on all menus (including catering and digital), menu boards and postmix dispensing valves at each of the Outlets throughout the Tam. (F) Changes in Outiet(s). Customer will promptly notify Pepsi, in writing, of any Outlet which is closed, sold or otherwise disposed of during the Term so that the Parties may promptly update Exhibit A. (0) Product Mix; Minimum SKU/Brand Requirement Customer must mandate the distribution of a minimum core assortment of Products, including a mix of both Postmix Products and Packaged Products at each of the Outlets throughout the Term, as identified by Pepsi,based on Equipment type at the Outlets. (H) Restrictions for Products. The Parties recognize and agree that there are certain additional territorial restrictions that pertain to the purchase and resale of the Products. To the extent any prospective Outlet(s) are located outside the territories serviced by Pepsi,then Pepsi may, upon request by the Customer, use commercially reasonable efforts to facilitate an agreement between the Pepsi-Cola bottler servicing the applicable territory and the Customer with terms substantially similar to the terms of this Agreement. Furthermore, Customer agrees not to distribute or resell the Products, directly or indirectly, outside the territories serviced by Pepsi and shall cause its purchasing representative to abide by such territorial restrictions. 3. Funding Provided Customer is not in breach of this Agreement, Pepsi agrees to provide Customer with the funding described below. (A) Annual Sponsorship Support Funds. Pepsi agrees to provide Customer with annual sponsorship support funds in the amount of Seven Thousand US Dollars ($7,000), payable to Customer within ninety(90)days after the later of(i)the first day of the Term or(ii)the signing of this Agreement by both Parties (the "Annual Sponsorship Support Fundy"). The Annual Sponsorship Support Funds are earned by Customer over the Term and may be increased to include additional Outlets acquired by Customer. In the event of early termination for any reason other than an uncured material breach by Pepsi pursuant to Section 6(A) herein, the #6575-1 CO PEPSI BEVERAGES COMPANY unearned Annual Sponsorship Support Funds will be repaid to Pepsi pursuant to the terms of Section 6(B)(i) herein The funds will used to sponsor the following events listed. $1,000 - Cathedral City Hot Air Balloon Festival, $1,000 - North Pole Village at Snow Feat, $1,000 - Movies in the Park, $1,000 - Taste of Jalisco Festival, $1,000 - Cathedral City LGBT Days, $1,000-Easter Kidapalooza,$1,000-East Palm Canyon Banner Program. (B) Marketing Support. Each Year during the Term, Pepsi will provide Customer with marketing support, valued at up to Two Thousand Five Hundred US Dollars ($2,500) ("Marketing Support'). The Marketing Support will be used and spent by Pepsi to pay for umbrellas and ice barrels, as mutually agreed to by the Parties. Customer acknowledges and agrees that unused Marketing Support in any Year will not be carried over to a subsequent Year and will not be redeemable for a cash payment. (C) Rebates. Each Year throughout the Term, Pepsi agrees to calculate the total number of eligible Cases and Gallons purchased by each of the applicable Outlets from Pepsi pursuant to this Agreement, and will provide Customer with rebates calculated based on applicable rates set forth below(the"Rebates?. The Rebates, as applicable, will be paid by Pepsi within sixty(60) days after the end of each Year. The Parties agree that Pepsi will not accrue or pay any Rebates for sales to Outlets that are in breach of the Performance Requirements listed in Section 2 above. Rebates Rates Eligible Products* $2.00/Gallon All Posdnix Products, Crush, Dr Pepper, El Nino and Lipton Iced Tea $2.00/Case** All CSDs as noted in Exhibit B 'The following Products are excluded from Rebates: 12 and 24 oz.CSDa, 16.9 Aquafina **24-pk or equivalent e.g.,two(2) 12 pk) (D) Commissions. Pepsi shall provide Customer with commissions, as a percentage of the actual cash ("cask in bag" or "CIB")collected by Pepsi from the Vending Machines placed at the Outlets, less any applicable government-imposed taxes/fees and deposits, as applicable ("Commissions?. Such Commissions shall be at the rate(s) set forth below(the "Commission Rate")and shall be calculated as follows: (CIB*Commission Rate)—applicable CRV=Commission due Prang Initial Vend Price* Commission Rate** All 20 oz.Corporate CSDs 3.00 35% -� 20 oz.Gatorade 3.00 35% 20 oz.Aquafiaa 3.00 35% *Pepsi shall have the right to increase vend prices by$0.25 in each of Years 2 through 5. "Commission Rates and Vend Prices for new Product will be mutually agreed upon by Pepsi and Customer (1) Commissions Payment Pepsi shall pay Commissions to the Customer within thirty(30)days of the end of each 4-week accounting period established by Pepsi. Pepsi shall make all pertinent revenue and sales records respecting the Vending Machines #6575-1 esi PEPSI BEVERAGES COMPANY available to Customer. Customer agrees that it is responsible for reviewing such records and that any claim or dispute relating to the Commissions must be brought by Customer in writing within one(1) year of the date such Commissions payment is due. Customer further acknowledges and agrees that it shall not receive any Commissions payment from Pepsi if Commissions fail to reach a certain threshold amount per period or quarter. The current threshold amounts are$50 per four-week period or$75 per quarter.The threshold may be revised by Pepsi from time to time. (2) Change to Commission Rate/Formula. Customer agrees that Pepsi shall have the right to change the Commission Rate and/or its formula/method for calculating Commissions as may be required by applicable laws or as reasonably necessary to respond to legislative acts in order that the Commission Rate remains cost neutral. (3) Vend Price. The initial vend prices and minimum scheduled increases that are necessary for Customer to qualify for any Commissions are set forth in the Commission chart above. Customer acknowledges that Pepsi has the right to pass through any incremerdaI fees, deposits, taxes or other governmentally imposed charges (whether local, state, federal or judicially imposed on manufacturers, distributors, consumers or otherwise).The pass-through of any such governmentally imposed fees,deposits,taxes or charges on the Products will be in addition to any scheduled Vend Prices increases set forth herein or notification restrictions that may be specified in this Agreement. 4. Egninment and Service (A) Equipment. Pepsi will loan to the Customer, at no charge, appropriate Equipment for dispensing the Products at the Outlets. Customer agrees that the Equipment will be exclusively used to display and merchandise the Products as reasonably determined by Pepsi, and subject to applicable local law,rule or regulation. Customer will}Kt use the Equipment to display, stock, advertise, sell or maintain any other products (including on the exterior of the Equipment).Title to such Equipment will remain vested in Pepsi or its affiliate and Customer will return all Equipment to Pepsi upon expiration or earlier termination of this Agreement. At Pepsi's request, Customer will provide Pepsi with a written Equipment verification list indicating the asset number, Equipment type and location of the Equipment loaned to Customer pursuant to this Agreement. To the extent that future technology enhancements, equipment platforms or products to support these platforms are substantially(Efferent nt in scope or composition compared to existing equipment components and products, Pepsi and Customer will work in good faith to negotiate the economic terms for implementation of the new technology equipment. (B) Vending Machines. With respect to the vending machine Equipment placed at the Outlets(the"Vending Machines"),Pepsi will have the additional responsibility for(i)stocking the Vending Machines with the Products and(ii) collecting, for its own account,all cash monies from the Vending Machines and for all related accounting for collected monies. Customer agrees to provide reasonable assistance to Pepsi in apprehending and prosecuting vandals. Pepsi shall not be obligated to pay Commissions on documented revenue losses resulting from vandalism or theft of Product with respect to any Vending Machines. Pepsi shall not be assessed common area maintenance fees, taxes or other charges based on its occupation of the space #6575-1 PEPSI BEVERAGES COMPANY allocated to its Equipment at the Outlets. (C) Service. Pepsi will provide, at no charge to Customer, preventative maintenance and service to the Equipment. Pepsi will also provide Customer with a telephone number to request emergency repairs and receive technical assistance related to the Equipment after business hours. Pepsi will promptly respond to each Customer request,and will use reasonable efforts to remedy the related Equipment problem as soon as possible, however because delays in service may be caused by factors well outside of Pepsi's control, Pepsi's service record will be measured in the aggregate such that an isolated failure is not a material breach of the Agreement. 5. Pricing Customer will purchase, and will require that any third parties or purchasing representative for the Outlets to purchase, Products and Ancillary Products directly and exclusively from Pepsi pursuant to the pricing and terms and conditions set forth herein. The initial pricing schedule for Products is set forth on attached Exhibit B, which may be changed by Pepsi from time to time during the Term Pepsi will be entitled to pass-through any incremental fees, deposits, taxes or other governmentally imposed charges (whether local, state, federal or judicially imposed on manufacturers, distributors, consumers or otherwise). The pass-through of any such governmentally imposed fees, deposits, taxes or charges on the Products will not be subject to any pricing cap or notification restrictions that may be specified in this Agreement. 6. General Terms (A) Termination for Default. Either Party may terminate this Agreement if the other commits a material breach of this Agreement;provided, however, that the terminating Party has given the other Party written notice of the breach and the other Party has failed to remedy or cure the breach within thirty(30)days of such notice. If for any reason Customer closes one or more Outlets or if one or more Outlets breaches the Agreement, then Pepsi shall have the option, in lieu of termination of the entire Agreement, to (i) adjust Funding in Section 3 commensurate with the projected decline in volume; (ir)terminate the Agreement only as it pertains to the sold, closed or breaching Outlet(s); ped (iii) obtain an equitable reimbursement for the portions of Funding and other costs attributable to such sold,closed or breaching Outlet(s). Notwithstatuling the foregoing, this paragraph will not apply to seasonal Outlet closures with Pepsi prior written approval,such approval not to be unreasonably withheld. Remedies. If the Term of this Agreement is terminated early for any reason other than an uncured material breach by Pepsi pursuant to subsection(A)above, the Customer will surrender to Pepsi all Equipment provided by Pepsi and will forfeit all Funding not paid as of the date of termination. In addition, without prejudice to any other right or remedy available to Pepsi,Pepsi will have the right to immediately seek reimbursement from Customer and the Outlets for the following: (1) An amount reflecting reimbursement for all Funding previously advanced by Pepsi but not earned by Customer pursuant to the terms of this Agreement. With regard to the Annual Sponsorship Support Funds, if any,the amount of such reimbursement will #6575-1 ed PEPSI BEVERAGES COMPANY be the result of multiplying, the Anneal Sponsorship Support Funds by a fraction, the numerator of which is the number of months remaining in the Year in which the Agreement is terminated at the time such termination occurs and the denominator of which is I2(twelve); (2) An amount reflecting reimbursement for the cost of installation, service and refurbishing of Equipment provided during the Term and the cost of removal of all Equipment that has been installed in the Outlets,as applicable; and (3) An amount as liquidated damages, for lost sales suffered by Pepsi as a result of such termination, equal to the sum of: (a) the product of$7 multiplied by the projected number of Gallons of Postmix Products that Customer would have been expected to purchase during the remainder of the Term based on the Volume Threshold and Customer's average annualized purchase rate and(b)the product of$10 multiplied by the projected number of 24-pk case equivalents of Packaged Products that Customer would have been expected to purchase during the remainder of the Term based on the Volume Threshold and Customer's average annualized purchase rate. (C) Expiration. Upon expiration of this Agreement, if Customer has not entered into a further agreement with Pepsi for the purchase of the Products, Customer will surrender to Pepsi all Equipment installed in the Outlets. (D) Right of Offset. Pepsi reserves the right to withhold payments due hereunder as an offset against amounts not paid by Customer or its Outlets for Products ordered from and delivered by Pepsi and any and all balances due and payable to Pepsi pursuant to this Agreement (E) Non-Disclosure. Except as may otherwise be required by law or legal process or as reasonably necessary far either Party to enforce its rights hereunder,neither Party will disclose to unrelated third parties the terms and conditions of this Agreement without the consent of the other. (F) Assignment. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned or otherwise transferred by either Party(whether by operation of law or otherwise)without the prior written consent of the other Patty,provided,however,that Pepsi may assign and transfer this Agreement (in whole and not in part) to an affiliate without the consent of Customer hereto if such affiliate is (a)capable of Rrlly performing all obligations of the assignor hereunder and(b)agrees, in writing to perform all of the obligations and assume all liabilities of the assignor hereunder. In the event that a third party acquires Customer or substantially all Outlets or if Customer is acquired or merges with a third party,Customer will,in connection with such transaction, cause the acquiring party/merged entity, in writing, to ratify this Agreement and assume all of the obligations of Customer hereunder. In the event that Customer does not deliver written evidence of such ratification and assumption of this Agreement by the acquiring party or merged entity within ten(10)days following the closing of the transaction, Customer will be in breach of this Agreement and Pepsi may, at its option, terminate this Agreement effective immediately and Customer will pay to Pepsi all sums specified in Section 6(B)herein. #6575-1 PEPSI BEVERAGES COMPANY (G) Governing Law. The laws of the state of California govern all matters arising out of this Agreement. (H) Price Discrepancy. Any price discrepancy claim must be submitted to Pepsi within 365 days of the date of the invoice in question. If Customer makes a price discrepancy claim within 90 days of the invoice date, Customer must submit a written request specifying the particular Product,amount in dispute and reason for the dispute. This request should be addressed to: Accounts Receivable Pepsi-Cola Customer Service Center P.O.Box 10 Winston-Salem,North Carolina 27102 If Customer makes a price discrepancy claim from 91 to 365 days after the date of invoice, in addition to the written request as specified above, Customer must submit to Pepsi a copy of the invoice in question,copies of any check remittances pursuant to the invoice in question and any additional supporting documentation. (I) Tax. Neither Pepsi nor its affiliates will be responsible for any taxes payable, fees or other tax liability incurred by Customer in connection with the consideration or any other fees payable by Pepsi under this Agreement If Pepsi is charged common area maintenance fees,taxes or other charges related to Pepsi's occupation of the space allocated to its Equipment at the Outlets,Pepsi may make an adjustment to the consideration provided in Section 4 above to offset for such costs. (3) Force Majeure. Pepsi will not be responsible for any delay or lack of delivery resulting directly or indirectly from any foreign or domestic embargo, product detention, seizure, act of God, insurrection, war and/or continuance of war, the passage or enactment of any law ordinance, regulation, ruling, or order interfering directly or indirectly with or rendering more burdensome the purchase, production,delivery or payment hereunder, including the lack of the usual means of transportation due to fire, flood, explosion, riot, strike or other acts of nature or man that are beyond the control of Pepsi or that of the suppliers to Pepsi unless such contingency is specifically excluded in another part of this Agreement. Subject to the provisions below,this Agreement will be suspended as to both Product and delivery during any of the above force majeure contingencies. Any and all suspended deliveries will resume after such contingencies cease to exist, if possible, and this Agreement will resume in accordance with its terms, unless otherwise provided for herein. (K) Waiver. No failure or delay of either Party to exercise any rights or remedies under this Agreement will operate as a waiver thereof,nor will any single or partial exercise of any rights or remedies preclude any further or other exercise of the same or any other rights or remedies. Any waiver must be in writing and signed by the Party waiving the rights. (L) Relationship of the Parties. The Parties are independent contractors with respect to each other. Nothing contained in this Agreement creates a joint venture partnership between the #6575-1 PEPSI BEVERAGES COMPANY Parties. (M) Construction. Customer and Pepsi acknowledge that both Parties participated equally in the negotiation of this Agreement and that, accordingly, in interpreting this Agreement, no weight shall be placed upon which Party hereto or its counsel drafted the provision being (N) Notices. Any notice which either Party is required or permitted to give hereunder will be in writing, signed by the notifying Party and will be either delivery by hand or nationally- recognized overnight courier service or deposited in the United States mail, certified or registered mail, return receipt requested, postage paid, addressed as follows: If to Customer, to the name and address set forth in the preamble herein. If to Pepsi, to the name and address set forth in the preamble herein, with a copy thereof to: Pepsi Beverages Company, 1111 Westchester Avenue,White Plains,NY 10604,Attention:Law Department or to such addresses as the Parties may subsequently provide in writing. Notice will be deemed to have been given when delivered by hand or nationally recognized overnight courier service, or when received as evidenced by the return receipt,or the date such notice is first refused,if that be the case. (0) Right of First Negotlation/Refusal. As of the commencement of this Agreement until ninety (90) days prior to the expiration of the Term, Customer hereby agrees to grant Pepsi exclusive negotiation rights with respect to extending the current Agreement or entering into a new agreement for Beverage pouring rights at the Outlets upon expiration of the current Term. If the Parties have not entered into a new agreement by the ninetieth day prior to expiration of the Term, Customer will be free to enter into discussions/negotiations with third parties except that Customer hereby grants Pepsi the absolute right of first refusal to match any bona fide offers made by a third party with respect to Beverage pouring rights/sales at the Outlets. Customer will provide Pepsi with details of any such bona fide offers, and Pepsi will have a fifteen (15) day window to decide whether it will match such offer and exercise its right of first refusal. The Parties agree that beverage type/category and not brand names will be considered for the purposes of determining a match. In the event that Pepsi declines to match such offer,or fails to respond within the fifteen(15)day period,then Customer will be free to enter into an agreement with any third party based on terms and conditions equal or favorable to those presented to Pepsi in connection with the notice specified herein. (P) Distribution Limitations. Pepsi reserves the right to limit quantities, withhold or deduct Funding as an offset to amounts not paid by Customer or terminate this Agreement if Customer (i) sells Products directly or indirectly for resale outside of the Pepsi's exclusive territory where the Outlet operates and(ii)purchases Products outside Pepsi's exclusive territory where the Outlet operates and resells such Products within Pepsi's exclusive territory. (Q) Entire Agreement. This Agreement contains the entire agreement between the Parties hereto regarding the subject matter hereof and supersedes all other agreements between the Parties. This Agreement may be amended or modified only by a writing signed by each of the Parties. (R) Representations. The Parties, represents and warrants to the other Party that (1) the #6575-1 PEPSI BEVERAGES COMPANY execution, delivery and performance of this Agreement will not violate any agreements with, or rights of, third parties or any statute, rule or regulation applicable to the party or any of its properties, assets or operations (including without limitation any financial reporting and disclosure requirements promulgated by the Securities and Exchange Commission) and (2) is duly authorized and empowered to bind itself to the terms and conditions of this Agreement for the duration of the Term and(3) it possesses legal authority to enter into and perform the terms and conditions of this Agreement. IN WITNESS WHEREOF,the undersigned have caused this Agreement to be duly executed as of the date set forth below. Bottling Group,LLC Cathedral City By. ��" By: 22 Print Nam 101+41 dD Print Name:Charles P.McClendon Title: TS g CZ%vfxr s de Tide: City Manager Data 12 Z 2011 Date: =2 '?—/9 #6575-1 fiiid PEPSI BEVERAGES COMPANY EXHIBIT A Customer Outlets Downtown Festivals • Snow Fest • Taste of Jalisco • Food Truck Mash Up • Cathedral City LOBI Days • Easter Kidapaloora • Coachella Valley Battle in the Desert • Tejano Music Fest • Halloween Spooktacular • Cathedral City Hot Air Balloon Fest • Movies in the Park Exclusivity for all events at the Cathedral City Community Amphitheater One vending machine inside the Cathedral City Community Amphitheater #6575-1 CO PEPSI BEVERAGES COMPANY EXHIBIT B Products and Prices #6575-1 EXHIBIT "E" CONCESSIONAIRE AGREEMENT 15 RIV#4895-6539-0626 v1 2c CONCESSIONAIRE AGREEMENT This Concessionaire Agreement ("Agreement") dated as of the 1st day of October, 2021 ("Effective Date"), is made and entered into by CITY OF CATHEDRAL CITY, a California charter city and municipal corporation ("City"), and KICK BACK CINEMAS CATHEDRAL CITY, LLC, a California limited liability company ("Kick Back Cinemas"). Hereafter, City and Kick Back Cinemas may sometimes be referred to individually as a"Party," and collectively as the "Parties." RECITALS WHEREAS, City is the owner of certain improved real property known as the Cathedral City Community Amphitheater, located in Cathedral City, County of Riverside ("County"), State of California ("State"), which is more particularly described on Exhibit "A" attached hereto and incorporated herein by reference ("Property"); and WHEREAS, Kick Back Cinemas desires an agreement for exclusive access and use of portions of the Property for the purpose of conducting the Permitted Activities; and City has agreed to grant Kick Back Cinemas such access to and use of portions of the Property, subject to the terms and conditions set forth in this Agreement. AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals, which Recitals are incorporated herein by this reference, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and for the mutual covenants contained herein,the Parties agree as follows: 1. definitions. The following terms have the meanings set forth in this Section wherever used in this Agreement or the attached exhibits: (a) "City Event" means a function, party, dinner, show, performance, concert, pageant, parade, play, movie, festival or any other type of event designated by the City as a City Event, whether wholly or partially organized, hosted, sponsored or otherwise undertaken by the City on the Property. (b) "Concessions" mean only Popcorn (including flavored popcorns, such as but not limited to, kettle corn, caramel corn, and cheese popcorn), hot dogs, nachos, candy, chips, cookies, fountain or bottled soda, bottled drinks(excluding beer, wine and other beverages containing alcohol), bottled water, coffee or other pre-packaged items sold at the Mary Pickford Theatre located at 36850 Pickfair Street,Cathedral City,CA 92234. (c) "Concession Stand" means that portion of the Property more particularly described in Exhibit "B," which is attached hereto and incorporated herein by reference, which is improved with a structure commonly known as the concession stand where patrons can purchase Concessions. (d) "Hawk" means to offer for sale by a person walking on the Property, carrying Concessions for sale in a suitable container and calling aloud in public. 1 RIV#4849-3950-2765 v5 (e) "Third Party" means a person or group not affiliated with the Parties renting the Property. (f) "Third Party Event" means a function, party, dinner, show, performance, concert, pageant, parade, play, movie, festival or any other type of event designated by the City as a Third Party Event, whether wholly or partially organized, hosted, sponsored or otherwise undertaken by a Third Party on the Property. 2. Grant of License: Scone. City hereby grants to Kick Back Cinemas, its officers, employees, agents, and representatives (collectively, the "Kick Back Cinemas Parties"), a license to use the Concession Stand solely for the Permitted Uses set forth in Section 3. This license includes the right of the Kick Back Cinemas Parties to access and have ingress and egress over the Property to the extent reasonably necessary for operation of the Concession Stand. (a) No Lease or Easement. Kick Back Cinemas agrees that the rights granted hereunder do not constitute a lease of any portion of the Property or Concession Stand,nor create or vest in Kick Back Cinemas or the Kick Back Cinemas Parties a leasehold estate, easement, or any other real property interest in or to any portion of the Property or Concession Stand. (b) Needed Access. City shall provide to Kick Back Cinemas such identification,badges, tickets or passes required for entry into the Property when being utilized for a City Event for the purpose of permitting the Kick Back Cinema Parties to have access to and to operate the Concession Stand and to otherwise Hawk Concessions during the City Event. City shall also provide four(4)complementary tickets to Kick Back Cinemas for each City Event. 3. Permitted Activities. Subject to the terms and conditions set forth in this Agreement and all local, state and federal laws and regulations, Kick Back Cinemas shall use the Concession Stand during the Term of this Agreement solely for the following purposes,and for no other purposes, unless agreed to in writing in advance by City in its sole and absolute discretion (collectively, the "Permitted Activities"): (a) During City Events, the sale of Concessions from the Concession Stand, and the Hawking of Concessions on the Property, unless Hawking is otherwise restricted or prohibited by the City for specific City Events; (b) During Third Party Events, the sale of Concessions from the Concession Stand and the Hawking of Concessions on the Property, unless Hawking is otherwise restricted or prohibited by the organizer of the Third Party Event. 4. Term. The term of this Agreement will commence on October 1. 2021 at 7:00 a.m., or upon the City's issuance of a certificate of occupancy for Property (including the Concession Stand)(the"Commencement Date")and will expire on December 31,2022 at 1 1:59 p.m. ("Termination Date"). The period between the Commencement Date and Termination Date shall be referred to collectively as the"Term." 5. Exclusive Right to Sell, (a) At City Events. Subject to City's reserved rights, during the Term, Kick Back Cinemas shall have the exclusive right to use the Concession Stand to sell Concessions and to Hawk Concessions(unless otherwise restricted or prohibited by City as provided in Section 3) 2 RIV#4849-3950-2765 v5 on the Property during City Events. At such times as Kick Back Cinemas is operating the Concession Stand during a City Event, and except as is expressly provided below, no Concessions (as expressly defined in this Agreement) shall be sold or offered for sale by any other vendor on the Property. City reserves the right to permit other vendors to sell and offer for sale during City Events, fountain or bottled soda, bottled drinks,bottled water,cookies and chips (only if offered as part of a meal combination and not as a single item sale) and any food or consumable items not included within the definition of Concessions. Such vendors may include food trucks, local restaurants,caterers and similar vendors. (b) Reservation of Rights in Event Service is Declined for City Event. In the event Kick Back Cinemas declines to, or is otherwise unable to, operate the Concession Stand and/or Hawk Concessions at a City Event as provided in Section 6, City reserves the right to contract with or otherwise retain the services of another concessionaire to operate the Concession Stand and to sell and Hawk Concessions during the City Event. In such event, Kick Back Cinemas shall have no right to payment from City or have any right to any of the revenues generated from such sales at that specific City Event. (c) Third Party Events. Kick Back Cinemas may, but is not obligated to, and does not have any right (exclusive or otherwise) to, operate the Concession Stand, to Hawk Concessions or to provide catering or other food and beverage services at Third Party Events, but may do so by arrangement with the organizer of the Third Party Event and with the written permission of City. City reserves the right to make such arrangements with the organizer of any Third Party Event for Concessions, Hawking, catering or other food or beverage services as City and the organizer may agree upon. 6. Jtight of Refusal. The Parties agree that operation of the Concession Stand by Kick Back Cinemas at City Events is mutually beneficial to City and Kick Back Cinemas and as such Kick Back Cinemas shall make its best effort to operate the Concession Stand for City Events. Kick Back Cinemas shall be notified of booked City Events at least twenty(20)days prior to the event. Kick Back Cinemas shall have the right to decline to open and operate the Concession Stand or to Hawk Concessions at any City Event which City anticipates will not draw at least 100 guests per hour at the City Event. 7. License Fee. During the Term of the Agreement, Kick Back Cinemas shall pay to City a license fee ("License Fee") in the amount of 40% of the Net Receipts for each City Event and Third Party Event which Kick Back Cinemas operates the Concession Stand. Net Receipts shall be defined as Gross Sales Receipts of Kick Back Cinemas from all sources at the City Event minus the sum of sales tax, cost of goods, and a monthly internes connection for the Concession Stand not to exceed $200 per month, prorated per City Event per Month. An accounting of sales from each event, along with documented expenses and payment in U.S. dollars, shall be made within 30 days of the end of each event. 8. Jtieht to Neeotiate Product Prices with Third Party. Kickback Cinemas shall have a right to directly negotiate the price of Concessions with any Third Party of the Property sold during Third Party Events. 9. exclusive Pepsi Beverage Agreement. During the Term of the Agreement, Kick Back Cinemas shall purchase soda products and other covered beverages using the City's account code per the City's Beverage Agreement with Pepsi Co., attached hereto as Exhibit "C." Kick Back Cinemas is responsible for all payments of soda products utilized in the 3 RIV#4849-3950-2765 v5 Concession Stand. All rebates earned for sale of covered beverages made on the premises will be paid to City and Kick Back Cinemas shall not have claim to these funds. Kick Back Cinemas acknowledges that they have read and understand the terms of the Pepsi Beverage Agreement in Exhibit "C." Initials 10. J-Iealth Permit. Kick Back Cinemas shall be responsible, at its sole expense, to obtain and maintain a valid health permit for operation of the Concession Stand during the Term of this Agreement as required by Riverside County, including but not limited to, food handlers cards. This expense shall not be deducted as an expense from Gross Sales when determining the License Fee. Fees associated with plan check and construction of the Concession Stand will be the responsibility of the City. 11. Maintenance and Use of Concession Stand. Kick Back Cinemas agrees to maintain the Concession Stand in a neat and clean condition free of all debris, trash and refuse. Kick Back Cinemas shall comply with all applicable laws, codes, ordinances, and other City requirements specific to the Permitted Activities, or affecting the cleanliness, safety, occupation, and use of the Concession Stand during the Term. Kick Back Cinemas covenants that no hazardous, toxic, flammable, or explosive material shall be permitted or released within the Concession Stand, as further set forth in this Agreement. Kick Back Cinemas shall not commit or suffer any nuisance upon or about the Concession Stand. In no event may Kick Back Cinemas conduct business other than as expressly provided in Section 3, above. Kick Back Cinemas shall be financially responsible for any damage or maintenance costs caused by his/her negligence. City shall be responsible for routine building maintenance. "Routine building maintenance" shall include,but not be limited to,structural repairs,plumbing and electrical repairs. 12. Cleaning Deposit. Upon execution of this Agreement by both Parties, Kick Back Cinemas shall either(a) pay to City the amount of One Thousand Dollars ($1,000.00) as a security and cleaning deposit ("Deposit"); or (b) install within thirty (30) days inside of the Concession Stand permanent shelving, counters, and/or equipment or other tenant improvements of equivalent value to the Deposit amount, all of which must be approved by the City in writing in advance of installation, and all of which shall be considered to be permanent fixtures to the Property ("Fixtures"). Upon expiration or termination of this Agreement. if Kick Back Cinemas fails to timely comply with Section 17 of this Agreement then City may use the Deposit, or any portion thereof, to pay for the removal of such personal property or equipment or for the cleaning and repair of the Concession Stand. Any amount of the Deposit not used by the City shall be returned to Kick Back Cinemas. If no Deposit was made, or if such Deposit was not adequate to cover the cost of the cleaning or repair, then City may pursue such legal and equitable remedies against Kick Back Cinemas as are available to City. 13. jvlodifications to the Property. Kick Back Cinemas may not make any material or permanent modifications to the Concession Stand without the City's prior written approval, which City may give or withhold in its sole and absolute discretion. If approved, all work undertaken by Kick Back Cinemas or its contractors, subcontractors and other agents in connection with the modifications shall be undertaken and completed in a good and workmanlike manner by professional, licensed and qualified personnel and contractors. Any fixtures installed by Kick Back Cinemas that cannot be removed without damage to the Property,or that remain on the Property after the expiration or earlier termination of this Agreement shall, at City's option and without payment or other compensation to Kick Back Cinemas, become the sole property of 4 RIV#4849-3950-2765 v5 City upon such expiration or termination. Any non-affixed equipment and all furnishings shall be retrieved by Kick Back Cinemas at the end of the Term and Kick Back Cinemas shall fully repair any damage caused by such removal. 14. Provided Equipment. (a) City shall provide at its own expense, within the Concession Stand for use by Kick Back Cinemas the following: an ice machine, Pepsi Soda Towers,power plugs, electricity, internet service,water,hot water,sewer,restroom,and menu board signage. (b) Kick Back Cinemas shall provide at its own expense, point of sale terminals, needed interior shelving and tables, hot dog grills, microwave oven or portable convection oven, popcorn popper, cheese machines, condiment dispensers, and any other needed equipment that may be used to sell Concessions not identified in subsection(a)above. 15. jvjjintenance of Equipment. During the Term of the Agreement Kick Back Cinemas shall be responsible for maintaining and cleaning of City's equipment in the Concession Stand. 16. Utilities. The cost of all utilities will remain the responsibility of City. 17. Surrender: Obligation to Remove Personal Property. Upon the expiration or earlier termination of this Agreement, Kick Back Cinemas shall surrender the Agreement to City and return possession of the Property to City in substantially the same condition as it exists on the Effective Date. Kick Back Cinemas shall also be responsible for removing any and all personal property or equipment belonging to Kick Back Cinemas and to leave Concession Stand in a neat and clean condition. 18. Insurance. From and after the Commencement Date, and continuing thereafter until the expiration or sooner termination of the Term, Kick Back Cinemas shall carry and maintain, at its sole cost and expense, the following types of insurance in the amounts specified and,in the form hereinafter provided for: (a) Commercial or comprehensive general liability insurance (including bodily injury and property damage) in an amount of not less than a single limit per occurrence of One Million Dollars($1,000,000)and One Million Dollars ($1,000,000) aggregate, insuring City and its principals, officers, employees, agents, contractors, lenders, and insurers (collectively, "City Parties") against any and all loss and liability arising out of Kick Back Cinemas' or the Kick Back Cinemas Parties' use of the Concession Stand. (b) Workers' compensation for Kick Back Cinemas' employees in the amount required by law. (c) Any other form of insurance for risks and/or perils against which a prudent person would protect itself and as are customarily obtained by Cities of similar operations in the State of California, including fire and casualty insurance, and/or increases in the amounts of coverage under any or all of the liability or other insurance policies carried by Kick Back Cinemas to the extent commercially reasonable and typically obtained by Cities of similar operations. 5 RIV#4849-3950-2765 v5 (d) As an express condition precedent to Kick Back Cinemas' first use of the Concession Stand for any purpose, Kick Back Cinemas shall furnish to City properly executed certificates of insurance and endorsements to those policies as required herein, and copies of its policies of insurance. Such policies shall clearly evidence all coverage required of Kick Back Cinemas and hereunder shall have commercially reasonable deductibles and shall provide that such insurance shall not be materially changed, terminated or allowed to expire at any time during the Term. All policies obtained by Kick Back Cinemas must be primary and non- contributing with any policies that City may elect to obtain and must contain waiver of subrogation provisions acceptable to City. All policies required hereunder must be endorsed to name City and the City Parties as additional insureds and copies of those endorsements must be provided to City. All policies shall be issued by insurers qualified to do business in the State of California whose financial strength is acceptable to City in its reasonable discretion and shall be in a form reasonably satisfactory to City. (e) Kick Back Cinemas acknowledges that neither it nor any of the Kick Back Cinemas Parties will be subject to coverage under any policy of insurance that City may elect(in its sole and absolute discretion)to obtain. 19. Indemnification. (a) General Indemnification. Except to the extent attributable to City's sole gross negligence or willful misconduct, City shall not be liable to Kick Back Cinemas or Kick Back Cinemas Parties for any damage to Kick Back Cinemas or Kick Back Cinemas Parties (or to Kick Back Cinemas' or the Kick Back Cinemas Parties' property) from any cause whatsoever, including, without limitation, theft, mysterious disappearance, rodents, vermin and acts of God. Kick Back Cinemas and Kick Back Cinemas Parties shall jointly and severably indemnify, protect, defend and hold harmless the Property, Concession Stand, City or City Parties from and against any and all actual or alleged claims, and/or damages, liens, judgments, penalties, attorneys' and consultants' fees, expenses and/or liabilities arising out of, involving, or in connection with, a Kick Back Cinemas Default or the use and/or occupancy of the Concession Stand by Kick Back Cinemas or the Kick Back Cinemas Parties or any act or omission of Kick Back Cinemas or the Kick Back Cinemas Parties. If any action or proceeding is brought against City or City Parties by reason of any of the foregoing matters, Kick Back Cinemas shall, upon notice, defend the same at Kick Back Cinemas' sole expense by counsel reasonably satisfactory to City. The indemnification provided for in this Section shall survive the expiration or termination of the Agreement granted herein as to matters occurring or accruing during the Term or by reason of Kick Back Cinemas' or the Kick Back Cinemas' Parties' occupancy or use of the Property. 20. Compliance with Applicable Laws. Rules. and Regulations. Kick Back Cinemas represents, warrants, and agrees that it shall use and occupy the Concession Stand in compliance with all applicable laws, statutes, ordinances, rules, regulations, orders and requirements in effect during the Term, or any part of the Term hereof, which regulate use or occupancy by Kick Back Cinemas of the Concession Stand or the conduct of the Permitted Activities. Kick Back Cinemas represents, warrants, and agrees that it and the Kick Back Cinemas Parties shall use and occupy the Concession Stand in compliance with all applicable Environmental Laws (defined below). Kick Back Cinemas further warrants and agrees that it shall remediate and clean, to the extent required by Environmental Laws, applicable to its or the Kick Back Cinemas Parties' use of the Concession Stand, any spills or releases of Hazardous 6 RIV#4849-3950-2765 v5 Substances (defined below), to the extent caused or contributed to by Kick Back Cinemas, or the Kick Back Cinemas Parties, or their respective agents, Kick Back Cinemas, invitees, and successors and assigns'use or occupancy of the Concession Stand. (a) "Environmental Laws" shall mean all federal, state, local, or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, or requirements of any government authority regulating, relating to, or imposing liability or standards of conduct concerning any Hazardous Substance (as hereinafter defined), or pertaining to occupational health or industrial hygiene (and only to the extent that the occupational health or industrial hygiene laws, ordinances, or regulations relate to Hazardous Substances on, under, or about the Concession Stand), occupational or environmental conditions on, under, or about the Concession Stand, as now or may at any later time be in effect, including without limitation, the Comprehensive Environmental Response,Compensation and Liability Act of 1980("CERCLA") [42 U.S.C.A §§ 9601 et seq.]; the Resource Conservation and Recovery Act of 1976 ("RCRA") [42 U.S.C.A §§ 6901 et seq.]; the Clean Water Act, also known as the Federal Water Pollution Control Act ("FWPCA") [33 U.S.C.A && 1251 et seq.]; the Toxic Substances Control Act ("TSCA") [15 U.S.C.A §§ 2601 et seq.]; the Federal Insecticide, Fungicide, Rodenticide Act U.S.C.A §§ 136 et seq.]; the Superfund Amendments and Reauthorization Act [42 U.S.C.A &§ 9601 et seq.]; the Clean Air Act [42 U.S.C.A §§ 7401 et seq.]; the Safe Drinking Water Act [42 U.S.C.A §§ 300f et seq.]; the Solid Waste Disposal Act [42 U.S.C.A §§ 6901 et seq.]; the Surface Mining Control and Reclamation Act [30 U.S.C.A §§ 1201 et seq.]; the Emergency Planning and Community Right-to-Know Act [42 U.S.C.A §§ 11001 et seq.]; the Occupational Safety and Health Act [29 U.S.C.A §§ 655 and 657]; the California Underground Storage of Hazardous Substances Act [Health & Saf. Code &§ 25280 et seq.]; the California Hazardous Substances Account Act [Health& Saf. Code && 25300 et seq.]; the California Hazardous Waste Control Act [Health & Saf. Code &§ 25100 et seq.]; the California Safe Drinking Water and Toxic Enforcement Act [Health & Saf. Code && 25249.5 et seq.]; the Porter-Cologne Water Quality Act [Wat. Code §& 13000 et seq.] together with any amendments of or regulations promulgated under the statutes cited above and any other federal, state, or local law, statute, ordinance, or regulation now in effect or later enacted that pertains to occupational health or industrial hygiene, and only to the extent that the occupational health or industrial hygiene laws, ordinances, or regulations relate to Hazardous Substances on, under, or about the Concession Stand, or the regulation or protection of the environment, including ambient air, soil, soil vapor, groundwater,surface water,or land use. (b) "Hazardous Substances" shall mean and include (a) those substances included within the definitions of "hazardous substance," "hazardous waste," "hazardous material," "toxic substance," "solid waste," or "pollutant or contaminant" in CERCLA, RCRA, TSCA, or under any other Environmental Law; (b)those substances listed in the United States Department of Transportation (DOT) Table [49 C.F.R. 172.101], or by the Environmental Protection Agency (EPA), or any successor agency, as hazardous substances [40 C.F.R. Part 302]; (c)other substances, materials, and wastes that are or become regulated or classified as hazardous or toxic under federal, state, or local laws or regulations; and (d)any material, waste, or substance that is (i)a petroleum or refined petroleum product, (ii)asbestos, (iii)polychlorinated biphenyl, (iv)designated as a hazardous substance pursuant to 33 U.S.C.A § 1321 or listed pursuant to 33 U.S.C.A § 1317, (v) a flammable explosive, or (vi)a radioactive material. 7 RIV#4849-3950-2765 v5 21. Events of Default: Termination. The material breach of any provision of this Agreement by Kick Back Cinemas shall constitute a default and material breach of this Agreement ("Default"). In the event of a Default by Kick Back Cinemas, City (in addition to any other remedies available at law or in equity), at its option, and without further notice to Kick Back Cinemas, shall have the right to (i) terminate the Agreement and all rights of Kick Back Cinemas in or to the Property; (ii) take full possession of the Property; and (iii) remove all of Kick Back Cinemas' equipment, facilities and other personal property from City's Property and either deliver the same at Kick Back Cinemas' cost or place it in storage for Kick Back Cinemas' account and give Kick Back Cinemas notice of the location of the same. In such event, neither Party shall have any further rights or obligations hereunder. 22. Non-Assignment. This Agreement shall not be assigned or otherwise transferred by Kick Back Cinemas, nor may any portion of the Property sublicensed by Kick Back Cinemas, without City's prior written approval,which City may withhold in its sole and absolute discretion. 23. notices. All notices and other communications required or permitted to be given hereunder shall be in writing and shall be sent by: (a)certified or registered mail, postage prepaid, return receipt requested, (b) personal delivery, or (c) a recognized overnight carrier that provides proof of delivery,and shall be addressed as follows: If to City : If to Kick Back Cinemas: City of Cathedral City Kick Back Cinemas Cathedral City,LLC Attn: City Kick Back Cinemas Attn: Damon Rubio 68-700 Avenida Lalo Guerrero 354 Rimhurst Court Cathedral City,CA 92234 Oceanside,CA 92058 Notices shall be deemed effective upon receipt or rejection only. 24. No Recordation. This Agreement may not be recorded. 25. Severability. If any provision of this Agreement is found by any court of competent jurisdiction to be invalid, illegal, or unenforceable, then such portion shall be deemed severed from this Agreement and the Parties shall negotiate in good faith to modify this Agreement to fulfill as closely as possible the original intent and purpose of this Agreement. 26. Entire Asreement: Amendment. This Agreement contains the entire agreement between the Parties with respect to the subject matter herein and supersedes any and all prior or contemporaneous negotiations, correspondence, or oral or written agreements between the Parties. No supplement, amendment, or modification of any provision of this Agreement shall be effective unless it is in writing and executed by both Parties. 27. Independent Contractor. In the operation of the Concession Stand granted by this Agreement, Kick Back Cinemas is an independent contractor and is not an agent or employee of City. Kick Back Cinemas, its officers, employees, agents, and subcontractors, if any, shall have no power to bind or commit City to any decision or course of action, and shall not represent to any person or business that they have such power. Kick Back Cinemas has and shall retain the right to exercise full control of the supervision of the services and over the employment, direction, compensation and discharge of all persons assisting Kick Back Cinemas 8 RIV#4849-3950-2765 v5 in the performance of this Agreement. Kick Back Cinemas shall be solely responsible for all matters relating to the payment of its employees, including compliance with social security and income tax withholding, worker's compensation insurance and all other regulations governing such matters. 28. Records and Audits. Kick Back Cinemas shall permit City and its authorized representatives to inspect and examine Kick Back Cinemas' books, records, accounts, and any and all data relevant to this Agreement at any reasonable time for the purpose of auditing and verifying statements, invoices, or bills submitted by Kick Back Cinemas pursuant to this Agreement and shall provide such assistance as may be reasonably required in the course of such inspection. City further reserves the right to examine and re-examine said books, records, accounts, and data during the three (3) year period following the termination of this Agreement and Kick Back Cinemas shall in no event dispose of, destroy, alter or mutilate said books, records, accounts and data in any manner whatsoever for three (3) years after the termination of this Agreement. 29. Counterparts. This Agreement may be signed in multiple counterparts, each of which shall be deemed an original, but all of which, taken together, shall constitute one and the same Agreement. 30. Governing Law. This Agreement shall be governed by and construed in accordance with the procedural and substantive laws of the State of California, without regard to its conflicts of laws principles. In the event of litigation between the Parties, venue in state trial courts shall lie exclusively in the County of Riverside, California. In the event of litigation in a U.S. District Court,venue shall lie exclusively in the Central District of California,in Riverside. 31. Attorneys' Fees. In the event of a suit by either Party against the other arising out of this Agreement, the prevailing Party shall be entitled to recover from the other Party all reasonable costs and expenses of suit, including attorneys' fees and the fees of other professionals. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. "CITY": -KICK BACK CINEMAS": City o Ca ,u:s ral , Kick Back Cinem: athedral City,LLC ,,i�r ' / i B (� . . . A By: Charles P.McClendon Name: w(t Ra,,,,,e City Manager Its: TR/4*A-C,.. 9 RIV#4849-3950-2765 v5 EXHIBIT "A" DEPICTION OF PROPERTY Cathedral City Community Amphitheater 68-526 Avenida Lalo Guerrero,Cathedral City,CA 92234 Located on the Northeast corner of Cathedral Canyon drive and Avenida Lalo Guerrero P • h1 4 ' t RIV#4849-3950-2765 v5 EXHIBIT "B" CONCESSION STAND AREA Concession Stand located within the Cathedral City Community Amphitheater located at 68-526 Avenida Lalo Guerrero,Cathedral City,CA 92234 .. , - ._ ....:;-.-4.04. .1 ...,. AP: .""i ,. . ' .' .6� _ y 1 e a ` '. :dry � w�Y[', �: 'i•., • i' "y ,,,, .... - . • ": '%.tom —*St''`; , _ '- - ry. I i i -, i 1 1 i 5 - --- -•-•41kblia.. 4....j!_ i rte'``... 1 I , fit • �" - A .. , RIV#4849-3950-2765 v5 EXHIBIT"C" PEPSI BEVERAGE AGREEMENT PEPSI BEVERAGES C AIPA Y BEVERAGE SALES AGREEMENT This Jets forth the agreement("Agreement)between Bottling Group,LLC,a Delaware limited liability company,and its affiliates and/or respective subsidiaries collectively comprising Pepsi Beverages Company with an office located at 6659 Sycamore Canyon Blvd., Riverside, CA 92507("Perpd")and Cathedral City,with its principal place of business at 68700 Avenue Lalo Guerrero, Cathedral City, CA 92234 on its own behalf,on behalf of its affiliates and wholly- owned subsidiaries, end on behalf of its individual franchisees and licensees, if any (the "Cuseaau'r"). The support described below is in lieu of any other discounts, allowances or rebates to which the Customer might otherwise be entitled from time to time. When fully executed,this Agreement will constitute a binding obligation of both parties until expiration or termination.Pepsi and Customer are sometimes hereinafter individually referred to as"Party"or hereinafter collectively referred to as the'parties." Pefuoti ons As used in this Agreement, the following capitalized terms have the respective meanings assigned thereto below. "Benerrage" or "Beverages" means all carbonated and non-carbonated, nn-alcoholic drinks, however dispensed during the Term of the Agreement "Beverage"or"Beverages"excludes bottled water,alcoholic hero-ages and cannabis infused beverages. "Cases"moans cases of Packaged Products (as defined herein) purchased by Customer from Pepsi during the Term,initially delivered in quantities of 24 plastic bottles,aluminum cans,glass bottles(or equalized 24 pack cases,e.g.,two 12-pack cases),eight 2-liter plastic bottles,or such other size,quantity and type of containers as Pepsi may make available from time to time during the Term. "Competitive Products"means any and all Bcveragea other than the Products 'Equipment means equipment loaned by Pepsi to Customer to dispeave,store or cocil.Products (as defined below),as more fully described in Section 4 herein "Gallons"means gallons of the Postmix Products purchased by Customer front Pepsi during the Term "Outlets"means existing future and after-acquired(provided not already undo a pre-existing beverage agreement with Pepsi) outlets owned, operated, managed, leased or franchised by. Customer under the Cathedral City trademarkjs)as listed in attached Exhibit A(and any related or similar trademarks, including any successor tradaaarks) including the parking garages or other Customer ownned'contmlled/operated surrounding areas located at or within those facilities and shall include any outlet or other facility in Customer's system that may be opened or acquired by Customer now or in the future,including under different concept and/or trademark during the Term This excludes beverages within City Hall,and City park properties or facilities, #6575-I RIV#4849-3950-2765 v5 C t PEPSI 131 VERAGI•c tMPANY unless the Parties mutually agree to identify additional Outlets inanupdated Exhibit A. "'fbckllg"/hotluctY"means Beverages that are sold ordistrl)utcd by Pepsi in pre-packaged form(eg.,bottles and cans).A curratt list of Pepsi's Packaged Produclll is listed in attached Exhibit B which may beamended by Pepsi fromtimc to time "Postalix Protbu.:ts"means Beverages 901d Illldiordistrbuted by Pepsi and used to create and prepare fountain beverages,frozen carlxmated or non-carbonated beverages. A current list of Pepsi's Postmix Products is listed in attached Exhibit B which may be amended by Pepsi from time to time Prodllcls"means Postmix Products,and Packaged Products. "Ynrtal"means each I2-month period during the Term commencing on the first day of the Term or an anniversary thrreot: L Im!! 1 hctermofthisAgreement will commenceon December IS,2019and thetmm will expireupon the later of five(Si Yews or at such time as Customer's collective purchases of Producu meets or exceeds a volume threshold(the "'tbhunu 7'hm/UJII')of 1 2,2S0 Cases(the"Tmq or if terminated pursuant to Section 6(B)ofthis Agreement.Thus,intheevent the VolumeThreshold is notmeton orbeforethe date indicated above,then the Tmn will automatically extend for the period oftime nccessary until the Volume Threshold has been met(the'AuttHlUltic E.xtmsionj. Except forapplicable Rebates,which may beearned duringtheAutomatic Extension,Pepsi will notprovideam otherfundingtoCustomer. 2. Performance This Agreement,including all of Pepsi's support to Customer as descd>ed below.is contingent upon Customer complying.throughout the Term.with allofthe following performance criteria (A) Exdusivity. Pepsi is the exclusive Beverage supplier to Customer's Outlets Customer aij:ees to take all necessar steps to ensure that the Products are the exclusive Beverages of their respective types sold, dispensed or otherwise made available, or in any way advertised, displayed, represented or promoted at or in connection with the Outlets by my method or through any medium whatsoever (including without limitation print, broadcast, direct mail. coupons,handbills,displays and signage),whether public orprivate.The Outlets will not aerve. dispense or otherwise make available or permit the availability of,or in any way advertise, display,represent or promote,Beverage products licensed by,or produced by bottlers 1 icemed by,The Coca-Cola Company or any affiliate thereof,or any other supplier of Competitive Products Bt Purchase of Produds Customer agrees to purchase and require its Outlets and purcbaaingrepresentatives topurchase.Beverage Products exclusively and directly from Pepsi. ::btilC-( RIV#4849-3950-2765 v5 PEPSI RIVERA(iES COMPANY (C) Fountain Products. Customer agrees to use the Pos l mix Products for use inpreparing the fountain beverage products(the'Founldn Pro"11cts',t(I)in accordance with the standards established by Pepsi and(ii)only for immediateor imminent consumption;Customer agreesnot to resell the Postmix Products either to I1011affiliated outlets or to consumers in any form other than theFountain Products (L} And Ilary Product. Customer agrees to purchase, and require its purchasing representatives to purchase all their respective rcquirem.cnts for carbon diox ide and bnmdcd disposable cups\A.ncilltuyProdllcd)exclusively ftom Pepsi. (E) Advertising Rigtts.Pepsi may advertise and promote its Products inand with respect to Custom.er and its Outlets upon mutually agreed to terms and conditions.Inaddition,Customer must display appropriate brand identification for each Product served on all menus(including catering and digital),menu boards and postmix dispensing valves at each of the Outlets throughout the Term. (F) Changes hi OutletO. Customer will promptly notify Pepsi, in writing. of any Outlet which isclosed,sold or otherwise disposed ofdwing the Tenn so that the Parties may promptly update Ell Ibit A. (G) Product Mn: Minimum SKU'Brud Requirement. Customer must mandate the distribution of a minimum core assortment of Products, including a mix of both Postmix Products mid Packaged Products at each ofthe Outlets throughout the Tenn,as identified by Pepsi.based on F.quipment type at the Outlets (H) Realrictionl for Products. The Parties recognize and agree that there are certain additional territorial restrictions that pertain to the purchase and resale of the Products.To the extent any prospective Outict(s)are boated outside the territories serviced by Pepsi,then Pepsi may,upon request by the Customer, use commercially reasonable efforts to fiu:ilitatc an agreement between the Pepsi-Cola bottler servicing the applicable territory and the Customer with tams P.Ubstantially similar to the terms of this Agreement. Fwthermore,Customer agrees not to distd'bule or resell the Products,directly Q indirectly,outside the territories serviced by Pepsi and shall cause itspurohasing representative to abideby suchterritorial real rictions 3. f=unding Provided Customer isnot in breach of this Agreement,Pepsi agrees to provide Customer with the funding described below. (A) Annual Sponaonhip Support Fund I Pepsi agrees to provide Customer with annual sponsorship support funds inthe IIDI OUDt of Seven Thousand US Dollars($7,000),payable to Customer within ninety(90 days after the later of(i)the first day of the Term or(i}the signing of this Agreement by both Parties(the 7A.nnul11 Sponsorship Support Frutb"). The Annual Sponsorship Support Flllkis are earned by Customer over the Tmn and may be iacreased to include additional Outlets acquired by Customer. In the event of early termination for any reason othel"than an uncured material breach by Pepsi pursuant to Section 6(A)herein,the #6575-1 RIV#4849-3950-2765 v5 CQQ .G PEPSI BEVERA(iI S t1 IMPANY unearned Annual Sponsorship Support Funds will be repaid to Pepsi pursuant to the terms of Sectim 6(B)Q herein.The funds will used to sponsor the following events listed.$1,000- Cathedral City Hot Air Balloon Festival,$1000-North Pole Village at Snow Fest,$11:100- Movies in the Park,SI,000-Taste of Jalisc.o Festival,$1,000•Cathedral City LGBT Days, $1,000-EasterKidapalooza,$1,000-East Palm Canyon Banner Program. (B) Marketing Support.Each Year during the Term,Pepsi will provide Customer with marketing support, valued et up to Two Thousand Five HUDdred US Dollars ($2500) C' Markding Support'). The Marketing Support will be used and spent by Pepsi to pay for umbrellas and ice barrels,as mutually agreed to by the Parties.Customer acknowledges and agrees that unused Marketing Supportin any Ycarwill not be carried overto a subsequent Year andwill notbe redeemable for a cashpayment. (C) Rebates.Each Year throughout the Term,Pepsi agrees to calculate the total number of eligible Cases and Gallons purchased by each of the applicable Outlets from Pepsi purBU8Dt to this Agreement,andwillprovide Customer with rebates calculated based on applicable rates set forth below(the RelHltd').The Rebates,as applicable,will be paid by Pepsi within sixty(60) days after the end of each Year. The Parties agree that Pepsi will not accrue or pay any Rebates for sales to Outlets that are in breach of the Performance Recpiremerts listed in Section 2 above. to""... I — yu(cjble Products- . $2.00/Gallon All Postmix PrUducts,Crush,Dr Pepper,El Nino and Lipton l eeed Tea $2.00/Case•• .All CSDs as noted in Emibit B 'The following Prod uctS are a.el uded from Rebates:12and24az CSDs.169Aquafina "24-pk or uivalent(e.g.,two(2)I 2-pk) (D) Commfssion(Pepsi shall provide Customer with commissions,as a percentage of the actual cash C'Clllh it bag'or"CIB')collected by Pepsi from the Vending Machines placed at the Outlets,less any applicable government-imposed taxes/fees and deposits, as applicable C'Co.,,Jnions'). Such Commissions shall be at the rate(s)set forth below(the"Comrnmum Ill/t/l')and shall be calculated as follows: (CIB*Comminion Rate)-applicable C RV_Commission due Proiva bUdal I adl'rke* RAUs* All 20 oz.. r@rateCSDs — 300 . . 35% - - 20oz.(iatorade 31)0 3S 20 oz.Aquafina 300 35% "'PcpSishall havetheright toincrease ven.pnces.y•1. meac o 'ears roug . "Commission Rates and Vend Prices for new Product will be mutually agreed uponby Pepsi t. a n rel LCLustonler (1) Commissions Payment. Pepsi shall pay Commissions to the Customer within thirty(30)days ofthe end ofeach 4-weck accounting period established by Pepsi.Pepsi shall make all pertinent revenue and sales records respecting the Vending Machines #6575-1 RIV 44849-3950-2765 v5 aPEPSI BI:VI:RA(i1 «)MPANI available to Customer.Customer agrees that it is responsible forreviewing such rccotds and that any claim or dispute relating to the Commissions must be brou&ht by Customer in writing within one(1)year of the date such Commissions payment is due.Customer further acknowledges and agrees that it shall not receive any Commissions payment from Pepsi ifCommissions failto reachacertain threshold amount per period orquaner.The • current threshold amounts are$5Oper four-week period or$75 per quarter The threshold may berevised by Pepsi from time to time. (2) Change to Commission RaW/Formula. Customer agrees that Pepsi shall have the right to change the Commission Rate and/or its formula/method for calculating Commissions as may be required by applicable laws or as reasonably necessary to respond to legislative acts inorderthat theCommission Rateremainscostneutral (3)Vend Price. The initial vend prices and minimum scheduled incmi.ses that are necessary forCustomerto qualify forany Commissions are set forth in theCommission chart above. Customer acknowledges that Pepsi has the right to pass through any incremental fees,deposits,taxes or other governmentally imposed charges (whether local,state,federal orjudicially imposed on manufacturers,distributors,coosuucm or otherwise).Thepass-through of any such govemmmrtally imposed fees,deposits.taxes or charges on the Products will be in addition to any acheduled Vend Prices increases set forth herein ornotification restrictions that maybe specified in this Agreement. 4. Euuinment and Service (A) Equipment. Pepsi will loan to the Customer,at no charge,appropriate Equipment for dispensing the Products at the Outlets. Customer agrees that the Equipment will be allusively used to di splay and merchand i se the Products as reasonably determ ined by Pepsi and subject to applicablelocallaw,nll.eorregulation. Customer willm t use the Equipment to display,stock, advertise,sell ormaintain any other products(including ontheexteriorofthe Equipment).Title to such Equipment will remain vested in Pepsi or its affiliate and Customer will return all Equipment to Pepsi upon expiration or earlier termination ofthis Agreement. At Pepsi'srequest. Customer will provide Pepsi with a written Equipment verification list indicating the 8880 number,Equipment type and location of the Equipment loaned to Customer pursuant to this Agreement. To the extent that future technology enhancements, equipment platfonns or products to support these platfurms arc substantially different in scope or composition COI DparM to existing cquipmc:lit components and products,Pepsi and Customer will work in good faith to negotiate the economic teims for implementation ofthe new technology equipment. (13) Vending Machinet.With respect to the vending machine Equipment placed at the Outlets(the"t'au/brg Mochlna'),Pepsi will have the additional responsibility for(i)stocking the Vending Machines with the Products and(ii)collecting,forks own account,all cash monies from the Veruling Machines and for all related accounting for collected monies. Customer agrees to provide reasonable assistance to Pepsi in apprehending and prosecuting sandals. Pepsi shall not be obligated to pay Commissions on docmnented revenue 1)88es resulting from s andalism or theft of Product with respect to any Vending Machines.Pepsi shall not be asl lCSsed common area maintenance fees,taxes or other charges based on its occupation of the space 116575-1 RIV#4849-3950-2765 v5 PEPSI BEVERAGES COMPANY allocated to is Equipment attheOutlets. (C) Senice Pepsi Will provide. at Do charge to Customer, preventative maintenance and service to the Equipment Pepsi will also provide Customer with a telephone number to request emergency repairs and receive technical assistance related to the F.qupment after business hours. Pepsi will promptly respond to each Customer request,and Will use reasonable efforai to remedy the related Equipment problem as soon as poSSlble.however because delays inservice may be caused by factors well outside ofPepsi'scontrol,Pepsi's scrvic:c record will be measum I inthe aggregate such that an isolated failure isnot amaterial breachofthe Agree m est 5 Customer will purchase. and will require that any third parties or purchasing representative for the Outlets to purchase. Products and Ancillary Products directly and exclusively from Pepsi pursuant to the pricing and terms and conditions set forth herein. The initial pricing schedule for Products is set forth on attached Ellibit B, which may be changed by Pepsi from time to time during the Term Pepsi will be entitled to pass-through any incremental fees,deposits, taxes or other governmentally imposed charges(whether tical, state, federal or judicially imposed on manufilcturers, distributors. consumers or otherwise). The pass-through of any such governmentally imposed fees, deposits, taxes or charges on the Products will not be subject to anypricing cap or notification restrictions that may bespecified inthis Agreement 6. General Tenm (A) Tennlnadon for Default. Either Party may terminate this Agreement if the other commits a material breach of this Agreement; provided, however, that the taminating Party has given the other Party written notice of the breach and the other Party has failed to n:mcdy or cun: the breach within thirty(30)days of such uoticc Iffor any reason Customer closes one or more Outlets or ifone or more Outlets breaches the Agreement, then Pepsi shall have the option,in lieu of termination of the entire Agreement. to (i)adjust Funding in Section 3 commensurate with the projected decline Involume; *terminate the Agreement only as it pertains to the sold, closed or breaching Outlet(s); .mid(iii)obtain an equitable reimbursement for the portions of Fuoding and other cosbi athibutable to Such sold,closed or breaching Outlet(s) Notwithstanding the foregoing,this paragraph will not apply to seasonal Outlet dosures with Pepsi prior written approval.such approval not to beunreasonahly withheld. Remedies. If the Term of this Agreement is terminated early for any reason other than an uncured material breach by Pepsi pursuant to subsection(A)above,the Customer will surrender to Pepsi all Equipment provided by Pepsi and will forfeit all Furding not paid ss of the date of termination Inadd[ion. without prejudice to any other right or remedy available to Pepsi.Pepsi will have I he right to immediately acck reimbursement from Customer and the Outlets for the following: (I) An amount reflecting reimbursement for all Funding previously advanced by Pepsi but not earned by Customer pursuant to the terms of this Agreement With regard to the Annual Sponsorship Support Funds. if any,the amount of such reimbursement will 40575-I RIV#4849-3950-2765 v5 V I PEPSI BEVERAGES COMPANY be the result of multiplying.the Ammal Sponsorship Support Funds by a fraction,the numerator of which is the numbec of months remaining in the Year in which the Agreement is terminated at the time such termination occurs and the denominator of whichis 12 (twelve): (2) An amount reflecting reimbursement for the cost of installation, service and refurbishing of Equipment provided during the Term and the cost of removal of all F.quipment that has beeninstalled inthe Outlets,as applicable:and (3) An amount as liquidated damages, for lost sales suffered by Pepsi as a resuh of such termination,equal to the sum of:(a)the product of S7 multiplied by the projected number of Gallons of Poshnix Prodtcts that Customer would have been expected to purchase during the remainder of the Term based on the Volume Threshold and Customer's average annualized purchase rate and(b)theproduct ofS I Omultiplied by the projected number of 24-pk case equivalents of Packaged Products that Customer would have been expected to purchase during the remainder of the Term based on the Volume Threshold and Customer'saveragc annnahud purchase rate (CI Expiration. Upon expiration of this Agreement. if Customer has not entered into a further agreement with Pepsi for the purchase ofthe Products,Customer will summer to Pepsi all Equipment installed inthe Outlets. (D) Rpt of Offset. Pepsi reserves the right to withhold payments due hereunder as an offilet against amounts not paid by Customer or its Outlets for Products ordered from and delivered by Pepsi and any and all balances due and payable to Pepsi pursuant to this.Agreement. (E) Non-Disclosure. Except as may otherwise be required by law or legal process or as reasonably necessary for either Party to enforce its rights hereunder,neither Party will disclose to UDI'Cllated third parties the terms and conditions of this Agreement without the consent of the other. (F) A kignment Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned or otherwise transferred by either Party(whether by operation of law orothmwiseI without the prior written consent of the other Party,prorided. however,that Pepsi may assign and transfer this Agrccmcnt (in whole and not in part)to an affiliate without the coment of Customer hcRto ifsuch affiliate is(a)capable of fully performing all obligations of the assignor hereunder and(b)agrees,inwriting to perform all ofthe obligations and assume all liabilities of the assignor hereunder. In the event that a third party acquires Customer or substantially all Outlets orifCustomer isacquired or merges with a third party,Customer will.in connection with such transaction, cause the acquiring party/maged entity,in writing, to ratify this Agreement and assume all of the obligations of Customer hereunder. In the event that Customer does not deliver written evidence of such ratification and assumption of this Agreement by the acquiring party or merged entity within ten(10)days following the closing of the transaction. Customer will be in breach of this Agreement and Pepsi may,at its option, terminate this Agreement effective immediately and Customer will pay to Pepsi all sums specified inSection 6(B)herein. #6575-1 RIV#4849-3950-2765 v5 PEPSI Bf VERAGI v (()MPANY (G) Governing Law. The laws of the state of California govern all matters arising out of this Agreement. III) Price Dibepancy.Any pricediscrepancy claim mustbe submitted t.o Pepsi within 36S days ofthe date of the invoice in question. I fCustomer makes aprice discrepancy claim within 90 days of the invoice date,Customer must submit a written request the particular Product,amount in dispute andreason forthe dispute.This request should be addressed to: Accounts Receivable Pepsi-Cola Customer Service Center P.O.Box 10 Winston-Salem.North Carolina 27102 If Customer makes a price discrepancy claim from 91 to 365 days after the date of invoice,in addition t.o the written request as specified above,Customer mnst submit to Pepsi a copy of the invoice inquestion,copies of any check remittances pursuant to the invoice in question and any additional supporting documentation. (1) Tu. Neither Pepsi nor its affiliates will be responsible for any taxes payable,fees or other tax liability incurred by Customer in connection with theconsideration or any other fees payable by Pepsi under this Agreement.tfPepsi iScharged common area maintenanoc fees,taxes or other charges related to Pepsi's occupation of the space allocated to its Equipment at the Outlets,Pepsi may makean adjustment to theconsideration prov ided in Section4 abovetooffset for such costs. (J) Force Majeure. Pepsi willoot be responsible for any delay or lack of delivezy resulting directly or indirectly from any foreign or domestic embargo,product detention,seizure,act of God, insurrection, war and/or continwmcc of war, the passage or enactment of any law ordinaru:e,regulation,ruling,or order interfering directly or indirectly with or rendering more burdensome the purchase,production,delivery orpayment hereunder,including the lack ofthe usual means of transportation due tofire,flood,explosion,riot,strike or other acts ofnature or man that are beyondthe control ofPepsi or that of thesupplierstoPepsi unless such contingency is specifically excluded inanotherpartofthisAgreement. Subject t.otheprovisionsbelow,this Agreement will be suspended as to both Product and delivery during any of the above force majeure contingencies.Any and all suspended deliveries will resume after such contingencies cease to exist,ifpossble,and this Agreement will resume in accordance wilt its terms,unless ott rwiseprovided for herein. (K) Waiver. No failure or delay of either Party to exercise any rigbm or remedies under this Agreement will operate as a waiver thereof,nor will any single or partial exercise of any rights or remedies preclude any further or other exercise of the same or any other rights or remedies Any waiver must be in writing and signed by the Party waiving the rights. p_) Relationship of the Parties. The Parties are independent contractors with respect to each other.Nothing contained in th i s Agreement creates ajoint ven ture partnership between the #6575-I RIV#4849-3950-2765 v5 PEPSI BEVERA( 1 t t)MPAN1 Parties. (M1 Con II roction. CUstomer and Pepsi acknowledge that both Parties participated equally in the negotiation of this Agreement and that, accordingly, in intapret.ing this Agrmrumt, no weight shall be placed upon which Party hereto or its counsel drafted the provision being interpreted (N) Notices. Any notice which either Party is recyired or permitted 1 D give herewider will be in writing, signed by the notifying Party and will be either delivery by hand or nationally- recognized overnight courier service or deposited in the United States mail, certified or registered mail,return receipt requested,postage paid,addressed 88 follows If to Customer, 1 D the name and address set furth inthe preamble herein. If to Pepsi,to the name and address set forth in the preamble herein, with a copy thereof ID. Pepsi Beverages Company, 1111 Westchester Avenue,White Plains,NY I 0604,Attention:Law Department or to such addresses 88 the Parties may subsequently provide inwriting Notice will be deeined to have been given when delivered by hand or nationally recognized overnight courier service,or when received as evidenced bythereturn receipt.orthedate suchnotice is first refused,ifthatbethecase. (0) Right of First Negotiation/Refusal. As of the commencement of this Agreement until ninety(90)days prior to the expiration of the Term,Customer hereby agrees to gnml Pepsi exclusive negotiation rights with respect to extending the current Agreement or entering into a new agreement for Beverage pouring rights at the Outlets upon expiration of the ctmmt Tenn lithe Parties have not entered intoa new agreement by the ninetieth day prior to expiration of the Term,Customer will be free to enter into discussions/negotiations with third parties except that Customer hereby grmts Pepsi the absolute right offirst refusal to match any bona fide offers made by a thirdparty with respect to Beverage pouring rights/sales at the Outlets. Customer will provide Pepsi with details of any such bona fide offers,and Pepsi will have a fifteen(15)day window to decide whether it wilt match such offer and exercise its right of first refusal The Parties agree that beverage type/category and not brand names will be considered for the pw:poses of determining a match Inthe event that Pepsi declines I D match such offer,or fails to respOnd within the fifteen(15)day period,then Customer will be free to enter into an agreement with any third party based on tmns and conditions equal or favorable to those presented to Pepsi inconnection with the notice specified herein IPI Distribution Limitatloal. Pepsi reserves the right to limit quantities, withhold or deduct Funding as an offset to amounts not paid by Customer or terminate this Agreement if Customer () sells Products directly or indirectly for resale outside of the Pepsi's exclusive territory where the Outlet operates and(ii)purchases Products outside Pepsi's exclusive territory where the Outlet operates and resells such Products within Pepsi's exclusive territory. (Q) Entire Agreement. This Agreement contsins the entire agreement between the Parties hereto regarding the subject matter hereof and supersedes all other agreements between the Parties This Agreement may be amended or modified only by a writing signed by each of the Parties. (R) Representations The Parties. represents and warrants to the other Party that (1)the "116575-I RBI#4849-3950-2765 v5 • . •I PEPSI BEVERACIES QOMF4NY execution,delivery-and performance of this Agreement will not violate any agreemcnls with, or rights o( third parties or any statute, rule or regulation applicable to the party or any of its properties, assets or operations (including witbDut limitation any financial reporting and disclosure requirements promulgated by the Securities and Exchange Commission)and (2) is duly authorized and empowered to hind itself to the terms and conditions of this Agreement for the duration of the Term and(3) it possesses legal authority to enter into and perform the terms and conditions of this Agreement. IN WITNESSWHEREOF,the undersigned have caused this Agreement to be duly executed as o fthe date set forth below Bottling Group.LEC Cathedral City O BY. r " BY: -6:40.611)':40.61"' Print N te'vo 1 PrintName CharlesP McClcodon 1it1� fiSRCe; S(dQ) Title City Manager Date: l 2 '2,2019 Date: //- ,.J..'7-i('J 46575-I RIV#4849-3950-2765 v5 CIPEPSI BEVERAGES COMP t v I \IIIBI] A Customer Outlets Downtown Festivals • Snow Fcst - Taste oflalisco - Food Truck Mash Up • Cathedral('ay LOBI Days • Easter Kidapalooza - Coachella Valley Battle in the Desert - Tejano Music Fest - Halloween 4rooktacular - Cathedral Cm Hot Air Balloon Fest - Movies in theParle Exclusivity for all even ill at the Cathedral City Community Amphitheater One ending machine inside theCathedraICityCommunity Amphitheater #6S/S-1 RIV#4849-3950-2765 v5 :CI i�lr,i �t�,1 tt,ii• (11vIvov EXHIBIT B Products and Prtes #6575-1 RIV#4849-3950-2765 v5