2a. Sheriff-jail commissary contract

.- VENDING MACHINE LEASE AGREEMENT ~ This vending machine lease agreement, entered into this 1st day of February, 2002, by and between FM Vending, whose postoffice address is 2700 71h Avenue North, Fargo, NO 58102 ("Lessor"), and Cass County Jail, whose postoffice address is located in Fargo, NO ("Lessee"). In consideration of the mutual covenants and agreements contained herein, both parties agree to the following: Lessee hereby agrees to lease, from Lessor, various models and types of vending machines to be located at the Cass County Jail (hereinafter referred to as Premises) for a period of one year under the terms of this Agreement for the initial term commencing March I, 2002. Lessor shall provide vending machines, on site service, routine stocking, cashless accounting system and associated equipment to Lessee during the initial term in accordance with the terms of this Agreement. This agreement shall automatically renew for a like period unless termination notice, as provided for herein; is received at least thirty (30) days prior to the end of the initial or any renewal term. Both parties agree that Lessor will pay a commission to Lessee in the amount of 26.5% on gross sales for candy/snack/convenience item sales; 1.5.0% on gross sales of sport drinks, juices and water; and 20.5% on gross sales of bottled soda sales. Gross sales are defined as total sales less any applicable sales taxes. Furthermore, both parties agree that Lessee shall, in all manner ana respects, be the sole operating entity for vending operations at the premises. \r The vending machines are to be placed in a conspicuous location on the Premises approved by Lessee and are to be offered for display and use. Lessee agrees to furnish electrical and water connections to vending machines during the effective term. Both parties agree that Lessor shall bear the entire cost of service and maintenance as required except that Lessee shall bear the cost of electricity and other utilities required for proper machine operation. Lessor or its agent shall have the authority to enter the premises for purposes of installing, servicing, repairing or removing vending equipment leased pursuant to the provisions of this Agreement. Lessor shall determine the location of each vending piece of equipment after consulting with Lessee and subject to the approval of Lessee. Lessee agrees not to change the approved location of any piece of vending equipment without the written consent of Lessor. Lessor shall also have the right to enter the premises for purposes of removing the contents of the vending equipment. The exercise of any right under this paragraph shall be done according to a schedule given to Lessor by Lessee. Lessor shall use all reasonable means to ensure that such rights are exercised in a manner that does not interrupt or interfere with Lessee's business. Lessee agrees that, during the initial term of this agreement, they will not allow any other person or Lessor to place food or beverage vending equipment on the premises without the expressed written consent of Lessor. Lessor shall service and maintain the vending equipment under this agreement as often as necessary and keep the equipment in good working condition, clean, and in good appearance. Lessee agrees to notify Lessor promptly of any machine needing service, either from an out of stock or out of order condition. Lessor agrees to respond to any out of order and out of service calls within two (2) hours and provide return to service within forty eight (48) hours. \.,. Lessor agrees to assume liability for, and does hereby agree to indemnify, protect, save and hold harmless Lessee from and against any and all liabilities, obligations, losses, damages, penalties, claims, suits and judgments, attorney fees and other expenses or disbursements of any kind, including damages for negligence of the contractor which becomes the obligation of Lessee Vending Machine Lnse Agreement Page I