FOODSERVICES MANAGEMENT AGREEMENT TH|S AGREEMENT, made rhisl!{day betweenMIDWESTERN STATEUNIVERSITYa
of {U
'r
, 2000, by and , hav i ng i ts
principal placeof businesslocatedat3410TaftBoulevard, WichitaFalls,Texas("Client") and ARAMARKEDUCATIONAL SERVICES, lNC.,a Delaware corporation, havingits principalplaceof businessat ARAMARKTower,1101 MarketStreet,Philadelphia, ("ARAMARK"). Pennsylvania WITNESSETH THAT: 1. ENGAGEMENT OF ARAMARK;EFFECTIVE DATE:Clientherebyengages ARAMARK, basis,to provideClientwithmeals,including a la carteitems on an exclusive and non-alcoholic for Clientto resellto its students, faculty,staffand guests beverages, on its campusin WichitaFalls,Texas.Theeffective dateof thisAgreement is January2, 2000. 2. DEFINITIONS: Thefollowing wordsandphrases whenusedin thisAgreement, givento themin thisParagraph: or anyamendment hereto, shallhavethemeanings A.
"AccountingPeriods": One of the twelve(12) segmentsof the
ARAMARKfiscalyear,eachconsisting of four(4) or five(5) weeks.Two (2)Accounting Periodsof four (4)weekseachand one (1)Accounting Periodof five(5)weeksoccurin eachARAMARKfiscalquarter. TheSeptemberAccounting Periodin 2003shallconsistof six (6)weeks. B.
"Agreement": ThisFoodServices ManagementAgreement.
C.
"AllocatedCharge":An amountestablished whichis by ARAMARK
reasonably for certainservicesprovided allocated to the CampusFoodServiceProgram, by ARAMARK to clientlocations. D.
"CampusFood ServiceProgram":Thoseboard,cash,catering,
(including a LittleCaesars concessions, campand otherrelatedfoodserviceoperations
anda Blimpiefoodoutletanda Starbucks kiosk)to be managed by ARAMARKunderthis Agreement. E.
"DirectCosts":Costsincurred by ARAMARKdirectlyattributable to
provided services underthisAgreement. F.
"Food Service Facilities":The areas, improvements, personal
propeftyandfacilities madeavailable by Clientto ARAMARK for the provision of thefood services as morefullydescribed in Paragraph 3.A.below. G.
"Generaland Administrative ExpenseAllowance":ARAMARK's
allowance of an amountequivalent to Six Percent(6%)of Net Receipts for the financial reporting,legal,tax and audit services,operational accountability and management provided oversight to clientlocations by ARAMARKat the district, regionalandcorporate levels. H.
"GrossReceipts":All receiptsreceived by ARAMARKin operating
the CampusFood ServiceProgram,including, withoutlimitation, the amountpaid to ARAMARKfor boardplan patrons,receiptsfrom cash operations, and receiptsfrom catering sales. l.
"Net Receipts":GrossReceiptslessall applicable stateand local
J.
"Prime InterestRate": The interestrate publishedin The Wall
salestaxes. StreetJournalas the base rate on corporateloanspostedby at leastSeventy-Five Percent(75%)of the thirty(30)largestU.S. banks,suchrateto be adjustedon the last day of eachAccounting Period. K.
"ReimbursableCosts": Direct Costs, AllocatedCharges and
Genera I andAdministrative Expense Allowance. L.
"Seryicewares": ltemsusedin the servingof food and beverages
glassware, packaging. suchas chinaware, silverware and"take-out" M.
"SmallExpendableEquipment":ltemsusedin the preparation of
foodsuchas pots,pansandkitchen utensils.
1
Midwestern Stae University
3.
FACILITIES ANDEQUIPMENT: A.
Food ServiceFacilities:Clientshallmakeavailable to ARAMARK
with suitableFoodServiceFacilities, equippedand readyto operate, completely together requiredfor the such heat,refrigeration, and utilitiesserviceas may be reasonably performance efficient shall by ARAMARK. The FoodServlceFacilities of thisAgreement includeadequatedressingrooms and rest rooms for ARAMARK'semployeesand appropriate officespaceandofficeequipment including, but not limitedto, desks,chairs, of tables,filingcabinets and safe,for the exclusive useof ARAMARKin the performance thisAgreement.Clientshallhavefullaccessto the FoodServiceFacilities at alltimes. B.
Repair, Replacementand Maintenance:Client shall furnish
buildingmaintenance shallpromptlymakeall services for the FoodServiceFacilities, withall equipment repairsand replacements, and shallbe responsible for compliance with respectto the Food federal,stateand localsafetyand healthlawsand regulations ServiceFacilities. C.
Servicewaresand Small ExpendableEquipment:Clientshall
initialinventory and SmallExpendable Equipment. furnishan adequate of Servicewares and Clientshalljointlytake At the commencement hereunder, ARAMARK of operations a copyof andSmallExpendable Equipment, of suchServicewares an openinginventory as a ARAMARKshallmaintain suchinventory whichshallbecomepartof thisAgreement. DirectCost. D.
lT System: AMMARK shall develop,implement, operateand
technology system(whichmay include,but not be limitedto, maintainan information to supportthe hardware, ownedand licensedsoftwareandsystemssupport)necessary servicesprovidedby ARAMARK(the "lT System"). ARAMARKshall charge an of implementation, operation and maintenance Allocated Chargefor the development, including environment, the lT System.Clientshallprovide,at its expense,a suitable for phoneand utilityserviceas maybe reasonably required suchheat,air conditioning, of the lT System. the operation
-3Midwestent State UniversiE
4.
CLEANING RESPONSIBILITIES: A.
ARAMARK'sResponsibilities:ARAMARK shall maintainhigh
standards of sanitation andshallbe responsible for routine andhousekeeping in cleaning the foodpreparation and serviceareas(including foodserviceequipment, kitchenfloors, hoodsand greasefilters)of the FoodServiceFacilities and for the routinecleaningof tablesandchairsin suchareas. B.
Client'sResponsibilities: Client,at its cost,shallprovideregular
cleaningservicefor walls,windows,floors,light fixtures,draperiesand blinds,and periodicwaxingand buffingof floorsin the FoodServiceFacilities. ln addition, Client,at plenum its cost,shallbe responsible for routinecleaningof all greasetraps,ductwork, chambersand rooffans in the FoodServiceFacilities.Clientshallbe responsible for trashandgarbageremovaland extermination service. 5.
FOODSERVICEAND MENUS:ARAMARKshallmanagethe Campus
FoodServiceProgramfor Clientand Client'sstudents, faculty,staffand guestsat such hoursand locations as ClientandARAMARK shall shallmutually determine.|ARAMARK submitmenusto suchpersonas Clientshalldesignateat leastone (1) weekin advance of implementationf 6.
PERSONNEL: A.
ARAMARKshallprovideand pay a staffof personnel on duty on
Client'spremisesfor the efficientmanagement of the CampusFoodServiceProgram. ARAMARKpersonnelwill be subjectto the rulesand regulations of Clientwhile on personnelmay Client'spremises.ARAMARK and be employed by an ARAMARK affiliate pursuant madeavailable to ARAMARK to an intercompany agreement. and relatedpayrollcostsfor ARAMARKpersonnel Compensation premises assigned to dutyon Client's shallbe DirectCosts.ln addition, ARAMARKshall chargeto the CampusFoodServiceProgram an Allocated Chargefor fringebenefitsand humanresource services. B.
premises ARAMARK shallassignto dutyon Client's onlypersonnel
acceptable to Client.
4Midwestern Snte University
C.
Cligt shall furnishARAMARKwith studentlabor to an extent
mutually agreedupon. ( D.
lf ARAMARKincursany costs,includinglegal fees, retroactive
wagesanddamages, takenby Clientor byARAMARK as a resultof anypersonnelaction or its affiliates at the direction of Client,whichactionARAMARKor its affiliates wouldnot havetakenbutfor Client's direction, Clientshallreimburse ARAMARK for suchcosts. E.
personnel ARAMARKagreesthat no supervisory of Clientshallbe
hiredby ARAMARK forthetermof thisAgreement andsix(6)monthsthereafter. thatARAMARKand its affiliates Clientacknowledges haveinvested personnel considerable assigned amounts of timeand moneyin training the supervisory to the CampusFoodServiceProgramin the systems,procedures, methods,forms, reports,formulas,computerprograms, recipes,menus,plans,techniques and other valuableinformation and uniqueto ARAMARK'smannerof which is proprietary is available, basis,to conducting its business on a confidential andthatsuchinformation such supervisorypersonnel.Therefore,Client agrees that supervisorypersonnel assignedto the CampusFoodServiceProgramby ARAMARKwill neitherbe hiredby Clientfor the termof thisAgreement and six (6) monthsthereafter, nor willClientpermit personnel supervisory assigned to the CampusFoodServiceProgramby ARAMARKto to the be employedon Client'spremisesfor a periodof six (6) monthssubsequent (unlesssuchpersonswereformerlyemployees termination of Client). of thisAgreement personnel" "supervisory For the purposeof this prohibition, shallbe definedas those personswho havedirectlyor indirectly performed management services or professional on Client'spremisesat any time duringthe twelve(12) monthperiodimmediately preceding termination of thisAgreement. In addition, Clientagreesthatif it violatesthe conditions set forthin paragraph, preceding theimmediately thenClientshallpayto ARAMARK andARAMARK damagesand not as a penaltyfor such breach,an amount shallacceptas liquidated personnelhiredby equalto two timesthe annualsalaryof the ARAMARKsupervisory premises of thetermsof thisAgreement. in violation Clientor allowedto workon Client's
-5MidwesternStateUniversity
F.
ARAMARKshall not discriminate becauseof race,color,religion,
sex, age, nationalorigin,disability, or statusas a VietnamVeteran,as definedand prohibited by applicable law,in the recruitment, selection, promotion, training, utilization, or otheremployment-related personnel termination activities concerning of the Campus FoodServiceProgram. ARAMARKaffirmsthat it is an equalopportunity and affirmative actionemployerand shallcomplywith all applicable federal,stateand locallawsand regulations. 7.
HEALTHEXAMINATIONS: ARAMARKshall causeall of its personnel
assignedto duty on Client'spremises to submitto periodichealthexaminations as requiredby law, and shallsubmitsatisfactory evidenceof compliance with all health regulations to Clientuponrequest. Thecostof suchexaminations shallbe a DirectCost. 8.
PURCHASING:ARAMARK,as an authorized agent of Client,shall
purchaseand pay for, as a DirectCost,all food,suppliesand servicesutilizedin the CampusFoodServiceProgram. ARAMARKwill creditlocaltradediscounts againstthe DirectCost. Cash discountsor discountsnot exclusivelyrelatedto ARAMARK's at the Client's facilities operation to Client's shallnotbe credited account. In the event an affiliatedcompanyor divisionof ARAMARKfurnishes _ productsor ancillary servicesnecessary to the efficientoperation of the CampusFood ServiceProgram,the costsfor such productsor ancillaryservicesas reflectedin the Costsshallbe competitive with the cost of obtainingsuch productsor Reimbursable froman independentsource services in theopenmarket. 9.
INVENTORY OF FOOD AND SUPPLIES:Duringthe term of this
titleto the inventory Agreement, of food and suppliesshallremainin ARAMARKuntil areconsumed in the CampusFoodServiceProgram. suchinventories At the termination of this Agreement,Clientshall,if requestedby ARAMARK,purchaseARAMARK's usableinventoryof all food and supplieswhichhas not yet beenchargedas a Direct priceshallbe determined by ARAMARK's Cost.The purchase invoicecost. 10.
LICENSES, PERMITS AND TAXES:ARAMARKshallobtainall federal,
and permitsrequired for operation of the CampusFoodSeruice stateand locallicenses and shallbe responsiblefor Program, all sales,use,excise,stateand localbusinessand 4Midwestern State University
incometaxesattributable of the CampusFoodServiceProgram.The to the operation cost of all such licenses,permitsand taxes,includingan estimated amountfor state incometaxesbasedon the operating unit'sincome,shallbe DirectCosts. In the eventthat a determination is madeby a government that authority payments, any sales,purchases, or useof propertymadeto or by ARAMARKunderthis Agreement, eitherin whole or in part, is subjectto any sales,Lrse,gross receipts, property,or any similartax which tax was not contemplated by the partiesat the commencement of operations hereunder, thefullamountof anysuchtax liability, together with any interestpaid by ARAMARK,shall be invoicedby ARAMARKand shall be reimbursed by Client,notwithstanding the factthatthisAgreement may haveexpiredor beenterminated for anyreasonby eitherpartypriorto thedateof suchdetermination. 11.
INSURANCE: ARAMARKshallprovideworkers'compensation insurance
generalliability as required by law. In addition, ARAMARKshallcarrycomprehensive insurance, includingproducts,contractual, and broadform vendors'coverage,with minimum limitsof at leastOne MillionDollars($1,000,000). ARAMARK shallfurnishto Client,annually,a certificate of insuranceindicating that such coverageis in effect. ARAMARKshallchargean AllocatedChargefor providing insurance coverageand relatedservices. Clientand ARAMARKwaiveany and all rightof recovery fromeach other for propertydamageor loss of use thereof,howsoeveroccurring. This waivershall but not be limitedto, lossescoveredby policies include, of fire,extended coverage, boiler and sprinkler explosion leakage. Thiswaivershallnot applyto claimsfor personal injury or death. 12.
CAPITALINVESTMENTS: A.
PriorInvestment: Pursuantto a prior agreementbetweenthe
parties, ARAMARKinvested ThreeHundredThousand approximately Dollars($300,000) for the purchaseand installation of certainfood serviceequipment, area treatment, signageand marketingmaterialsand othercostsassociated with certainfood outlets, franchised food outlets(the "PriorInvestrnent"). which includedcedainnationally An listof the costsincurred willbe attached to thisAgreement itemized as Exhibit"A". The t
Midw est ern SI ate Univ ersity
unamortized balanceof ARAMARK'sPriorlnvestment as of January2, 2000 is Six ThousandSix HundredFifty-Seven Dollarsand Eighty-Four Cents ($6,657.84). ARAMARKshall continueto amortizeits Prior Investment over the remainderof its originalfive (5) year amortization scheduleby includingthe AccountingPeriod amortization chargeas a DirectCostuntilARAMARK's investment is fullyamortized. Uponexpiration of thisAgreement or termination of or cancellation this Agreementby either party for any reasonwhatsoeverprior to the complete amortizationof the Prior Investment,Client shall reimburseARAMARKfor the plusall accruedbut unbilledinterestas of unamortized balanceof the PriorInvestment the date of expiration, termination or cancellation, whichinteresthas accruedfromthe date the expenditure was finalizedat the PrimeInterestRateplustwo (2) percentage pointsper annum,computed eachAccounting Periodon the declining balance.ln the event such amountis not paid to ARAMARKwithinthirty(30) days of expiration, termination or cancellation, Clientagreesto pay intereston suchamountat the Prime pointsperannum,computed InterestRateplustwo (2)percentage monthlyfromthe date of expiration, or cancellation termination to the datepaid. Titleto the equipment and areatreatment shallpassto Clientupon completion of amortization or earlierpayment to ARAMARKof the unamortized balance, rightto repurchase subjectto the franchisor's the equipment, andARAMARK's obligation to removethe franchisor's signageandothertradedress,in accordance withthe termsof between ARAMARK thefranchise agreement andthefranchisor. B.
2000 Investment In additionto the Prior Investment made by
ARAMARK,ARAMARKagreesto investan amountestimatedat Two HundredFifty for foodservicefacilityrenovations ThousandDollars($250,000) and for the purchase and installation of foodserviceequipment on Client'spremises.An itemizedlist of the to thisAgreement costsincurred willbe attached as Exhibit"8". ARAMARKshallamofiizeits investment on a straightline basis over a periodof five (5) yearsby chargingthe Accounting Periodamortization charge as a Direct Cost until AMMARK's 2000 Investmentis fully amortized. Such shallbeginat suchtimeas ARAMARKhasfinalized amortization its 2000lnvestment, -8Midwestenr State University
Uponexpiration of thisAgreement of or termination or cancellation this Agreementby either party for any reasonwhatsoeverprior to the complete amortization of the investment. Clientshallreimburse ARAMARKfor the unamortized plusall accruedbut unbilledinterest balanceof the 2000Investment as of the dateof expiration, termination or cancellation, whichinteresthas accruedfrom the date the 2000Investment points wasfinalized at the PrimeInterestRateplustwo (2) percentage per annum,computed eachAccounting Periodon the declining balance.In the event suchamountis not paidto ARAMARKwithinthirly(30)daysof expiration, termination or cancellation, Clientagreesto pay interest on suchamountat the Primelnterest Rate plus two (2) percentagepoints per annum,computedmonthlyfrom the date of expiration, termination or cancellation to thedatepaid. Title to the equipmentshall pass to Clientupon completion of amortization or earlierpaymentto ARAMARKof the unamortized balance. 13.
F I N A N C I ATLE R M S : A.
ClientResponsibilitiesAllfacilities, to be equipment andservices
provided by ClientunderthisAgreement shallbe at Client's expense. B. MealPlanRates:ARAMARK agreesto prepareandservemealsto _ Clientfor Clientto resellto its studentsparticipating in the Meal Planat the following rates: MealPlan
Meal Rate
F a l l a n d S p ri n g S e me ste rs 1 9 - M e aPl l a n 14- M ealPlan 1 O - M e aPl l a n 25 MealBlock*
$
1 O - M eP alan 1S-MeP a ll a n
$
2.20lmeal 2.94lmeal 3.7Slmeal plustax $1O0/plan
SummerSession 2.65lmeal 2.65lmeal
. Only non-resident students,facultyand staffmay purchasethe 25 Meal Block plan.
-9Midwestent Stue University
At the beginning of eachsemester,ClientshallfurnishARAMARK witha listof all personsentitled to mealsat BoardPlanratesandshalladviseAMMARK weeklyin advanceof any changesin the list.Billingsto Clientfor each week of the Periodwillbe basedon the number Accounting of persons listedon the Mondaymorning of such week beforebreakfast. will be madefor mealsor days which No allowance contractpatronsmiss,andpartialdayswillbe considered fulldaysfor billingpurposes. C.
CasualMeals:ARAMARKshallprovidecasualmealsto Client's
faculty,staffandguestsat thefollowing students, rates. Breakfast: $4.25plustax Lunch: $4.75plustax Dinner: $4.90plustax D.
Client'sCommissions: ARAMARK shallpayto Clientcommissions,
basedon NetReceipts fromthefollowing services. CasualMeals 10% ClientSponsored 10o/o Catering CafeCash 10% - SnackBar 10% SummerCampMealPlan 10o/o Non-ClientSponsoredCatering 15o/o No commission willbe paidto Clientbasedon FallandSpringsemester MealPlansales pointsales. noron declining balance E.
Catering:ARAMARKshall providecateringservicesfor special
groupsand Presidential functions authorized by Clientat pricesto be mutuallyagreed upon. F.
Caf6 Cash: Client'sstudents,facultyand staff may purchase
declining balanceCaf6CashdirectlyfromARAMARK, whichCafeCashmaybe usedto of Fifty makepurchases in the MealPlanandretailoperations. Foranyindividualdeposit Caf6Cashaccountan Dollars($50.00) or more,AMMARK willaddto the individual's (5%)of theamount deposited. amountequalto FivePercent
-10Midw estent Stue University
G.
Profit Limitation:ARAMARKshallretainall GrossReceiptsfrom
which it shall be entitledto reimburseitselffor all Reimbursable Costs includingits Generaland Administrative fxnerfftflowance. In addition, ARAMARKshallreceivea ServiceFee of FourPercent(4%)of l,{etReceipts(the"ServiceFee").The totalof the Reimbursable "Entitlement." CostsandServiceFeeshallbe referred to as ARAMARK's to ARAMARK,it being Clientdoes not guarantee any Entitlement understood that ARAMARKshall receiveits Entitlement only if Gross Receiptsare provided, sufficient to coverARAMARK's Entitlement; however, thatARAMARKshallbe permitted year deficitin its to reimburseitselffor any Accounting Periodor operating Entitlement by retaining the amountof suchdeficitfrom GrossReceiptsof succeeding years.lf GrossReceipts Accounting in Periodsor operating fromARAMARK's operations any year exceed ARAMARK'sEntitlement for such year, plus reimbursement to ARAMARKfor deficitsin its Entitlement from prioryears,if any, thenARAMARKand Clientshallsharesuchexcessas follows:FiftyPercent(50%)to Clientand FiftyPercent (50%)toARAMARK. 14. _
ACCOUNTING: A.
Initial Four-WeekPayment: Prior to the commencementof
foran amountequalto operations hereunder, ARAMARK shallsubmitto Clientan invoice the estimateof ARAMARK's chargesfor servingMealPlanpatronsfor one (1) FourWeekAccounting Period("lnitial Payment"). Withintwenty(20) dayspriorto the commencement date of each academicyear (as definedin the Client'sofficialcalendar) thereafter, ARAMARKwill submitto Clientan invoice in an amountequaltotheincrease, if any,or a creditmemofor the decrease,if any, betweenthe originalInitial Paymentand the estimated Reimbursable Periodin such Accounting Costsand ServiceFee for the firstfour-week year. academic The foregoingpayments shallbe retainedby ARAMARKand shall as authorized agent be usedfromtimeto timeby ARAMARKin partto makepurchases to Clientat thetimeof thelastbillingmadeby of Client.Suchpayments shallbe credited ARAMARK to Clientat thetermination of thisAqreement. -IL Midw estern State Univ ersity
B.
AccountingPeriodBilling:Withintwenty(20)daysafterthe endof
eachAccounting Period,ARAMARKwillsubmitto Clientan invoicefor the amountsdue ARAMARKpursuant to Paragraph 13forsuchperiod. C.
CommissionPayment:Withinthirty(30)daysafterthe end of each
Accounting Period, ARAMARK willpayto Clientthe commissions to due Clientpursuant P a r a g r a p1h3 . D . D.
Accounting Period OperatingStatementand Reconciliation:
Withinthirty(30)daysafterthe end of eachAccounting Period,ARAMARKwillsubmitto Clientan operating statement for suchperiod.Any difference betweenthe amountof the invoicepreviously submitted fortheAccounting Period(as referred 14.8.) to in Paragraph and the amountshownon the operatingstatementas owingto ARAMARKfor the Accounting Periodwillbe reflected in the subsequent Accounting Periodbilling.In the for the Accounting for eventGrossReceipts Periodexceeded ARAMARK's Entitlement the period,plusreimbursement to ARAMARKfor any deficitsin its Entitlement for prior years,ARAMARKshallpay to Clientits shareof such Accounting Periodsor operating in accordance excessreceipts withParagraph 13.G.
E.
-
shall Payment Terms: toClient byARAMARK ,bXt1""rfrffsubmitted
be paidwithinten (10)daysof the invoice date.lfithe eventinvoices are not paidwithin (25)daysof the invoi.ce twenty-five shallbe chargedon eachinvoiceat One date,interest Percent(125o/o) HundredTwenty-Five of the PrimeInterestRate per annum or One perAccounting Percent(1o/o) Period,whichever is greater,on the unpaidbalance(or in the eventlocallaw prohibits the chargingof suchrate,interestshallbe chargedat the maximumlegalratepermitted), computed fromthe invoicedateuntilthedatepaid. The rightof ARAMARK for latepaymentshallnot to chargeinterest be construed as a waiverof ARAMARK's rightto receivepaymentof invoiceswithinten (10) days of the invoicedate. In the eventthat ARAMARKincurslegalexpensein
its rightto receivetimelypaymentof invoices, Clientagreesto pay reasonable enforcing feesandothercosts. attorney's 15.
RENEGOTIATION: The financialtermsset forthin this Agreementand
arebasedon conditions in existence by ARAMARK hereunder otherobligations assumed -12M idw estenr Stale U niv e rsity
Client's including by way of example, operations, on the dateARAMARKcommences labor,foodand supplycosts;and federal,stateand localsales,use studentpopulation; regarding and excisetaxes. In addition,ARAMARKhas reliedon representations and with the negotiation made by Clientin connection existingand futureconditions or the inaccuracy of thisAgreement.ln the eventof a changein the conditions execution to all other by Client,in addition or breachof, or the failureto fulfill,any representations the rightsand remediesof ARAMARKat law, in equityand underthis Agreement, basis agreeable on a mutually shallbe renegotiated andotherobligations financialterms or breach. to reflectsuchchange,inaccuracy anythinghereinto the contrary,the MealPlan ratesset Notwithstanding wagelawsin effect 13.8,are basedon thefederalandstateminimum forthin Paragraph wage Shouldthe minimum hereunder. operations commences as of the dateARAMARK to any federal,stateor locallaw or at any time aftersuchdatepursuant be increased be entitledto a pro rataincreasein its Board ARAMARKshallautomatically regulation, from such Plan rates to cover increasedlabor costs resultingdirectlyor indirectly increase. to the otherfor any partyshallbe responsible Neither _ 16. FORCEMAJEURE: of thisAgreement, fromthe failureto performany termsor provisions lossesresulting war, of moniesowed,if theparty'sfailureto performis attributableto exceptforpayments fire;flood;or anyotheract notwithin strikeor otherworkstoppage; riot,or otherdisorder; with,and which,by reasonable is interfered the controlof the partywhoseperformance shallbe referredto as a suchoccurrence suchpartyis unableto prevent.Any diligence, withthe CampusFood whichinterferes ln the eventof a ForceMajeure "ForceMajeure." stepsto continueto shalltakeall reasonable ARAMARK uponrequest, ServiceProgram, ARAMARKandClient. satisfactoryto provideserviceupontermsandconditions accurate shallmaintain ARAMARK BOOKSANDRECORDS: ACCURATE andshallretain withthe CampusFoodServiceProgram booksandrecordsin connection 17.
for a periodof two (2)years. suchrecords
-13MidwesternStateUniversiry
18.
CONFIDENTIAL INFORMATION ANDPROPRIETARY MATERIALS: A.
ConfidentialInformation:All financial,statistical, operatingand
personnel materials and information, including, but not limitedto, technicalmanuals, recipes,menusand mealplans,policyand procedure manualsand computersoftware programs,includingthosesoftwareprogramscreatedby Clientbasedon ARAMARK suppliedinformation, relative to or utilized in ARAMARK's or the business business of any subsidiary or affiliateof ARAMARK,shallbe the propertyof ARAMARKand shallbe confidential. Exceptto the extentdisclosure of ARAMARK's is confidential information requiredby law,Clientshallkeepsuchinformation confidential and shallso instructits agents,employees, and independent contractors, and the use of such information by Clientin any mannershallnotaffectAMMARK'sownership natureof or the confidential such information. Clientshallnot photocopy or otherwise duplicate any such materials withoutthe priorwrittenconsentof ARAMARK. B.
ProprietaryMaterials:Clientagreesthat all computersoftware
programs,signageand marketing and promotional literature and material(collectively referredto as "Proprietary Materials"), used by ARAMARKon Client'scampusin connection with the food servicesprovidedby ARAMARKunderthis Agreement, shall remainthe property of AMMARK notwithstanding the factthatClientmay havereceived an AllocatedChargefor the use of such Proprietary Materialsin connectionwith the Campus Food ServiceProgram.Upon terminationof this Agreement,all use of trademarks, servicemarks,and logosownedby ARAMARKor licensed to ARAMARKby third partiesshallbe discontinued by Client,and Clientshallimmediately returnto ARAMARKall Proprietary Materials. 19.
permitted NOTICE:Any noticerequired, or desiredto be givenunderthis
Agreementshall be sent by prepaidregisteredor certifiedmail, return receipt requested, or by commercial courierseryice,or by electronic facsimile(butin the latter instance,also by mail or by commercial courierservice). Noticesshall be deemed receivedon the firstto occurof the following:(i) whenpersonally delivered;(ii)when actuallyreceived;or (iii)two (2) businessdaysfollowingthe depositthereofwith the
-14Midwestern StateUniversity
mail. Noticesshallbe sentto the addresses set forthbelow(or to any otheraddress whichthe relevantpartymaydesignate to the otherby writtennotice): To ARAMARK:
To Client:
ARAMARKEducational Services, Inc. ARAMARKTower 1101MarketStreet Philadelphia, PA 19107 Attn: President 20.
Dr.LouisJ. Rodriquez President Midwestern StateUniversity 3410TaftBoulevard WichitaFalls,TX 76308
ENTIREAGREEMENT AND AMENDMENTS: ThisAgreement represents
the entireagreement betweenthe partiesandsupersedes any and all prioragreements. All prior negotiations have been mergedinto this Agreement,and there are no understandings, representations, oralor written,expressor impliedother or agreements, 14.Obligations thanthoseset forthhereinor referenced in Paragraph of the partiesset forthin thisAgreement duringthe lifeof thisAgreement arisingout of eventsoccurring shallsurvivethetermination of thisAgreement. The termsof this Agreement may not be changed,modifiedor amended exceptby a writingsignedby bothparties. 21.
WAIVER:The failureof AMMARK or Clientto exerciseany right or
remedyavailableunderthis Agreementuponthe other party'sbreachof the terms, representations, or conditions or the failureto demandthe covenants of thisAgreement promptperformance shallnotbe deemeda waiver of anyobligation underthisAgreement performance; of (i)suchrightor remedy;(ii)the requirement of punctual or (iii)any rightor remedyin connection withsubsequent breachor defaulton the partof the otherparty. 22.
LAW: ThisAgreement shallbe governedby the law of the GOVERNING
statewherethe servicesdescribedin Paragraph1 are rendered,withoutregardto principles of conflicts of lawsapplicable therein.
-15Midw estern State U niversity
23.
TERMANDTERMINATION: A.
Term:The initialtermof this Agreementshallbe for five (5) years
commencingon January2, 2000. Thereafter, the term of this Agreementmay be extended as mutually agreedupon. B.
Termination:lf at any time duringthe initialterm or any renewal
termof thisAgreement eitherpartyconsiders terminating the Agreement, suchpartyshall givethe otherpartywrittennoticethatit is considering suchaction,whichnoticeshallset forthwithsufficient specificity suchparty'sreasonsfor contemplating During termination. the followingthirty(30) day periodthe partiesshalldiscuss,in goodfaith,the party's reasonsfor considering termination in an effortto avoid the need for such action. period,the partyconsidering Following the thirty(30)day discussion if not termination, fullysatisfied, may electto terminate the Agreement by givingthe otherpartysixty(60) provided, days'written noticeof its intention to terminate; however, neitherpartymaygive noticeof its intention to terminate duringthefirstninety(90)daysof operation underthis Agreement. lN WITNESSWHEREOF, the partiesheretohavecausedthisAgreement to be signerlby theirdulyauthorized represenhtives the dayandyearfirstabovewritten. MIDWESTERN STATEUNIVERSITY ("Client")
B ARAMARKEDUCATIONAL SERVICES. lNc. ("ARAMARK") M *4-
rJ..lt-t---.--
Name: MarkNelson Title: VicePresident Doc#122134v1 cs# 23749 Comp#2122
-16Midw estern State University
Exhibit"A" PriorInvestmentCostsIncurred
-17Midwestern Stak Aniversit!
[4sta ny 2 aprs tu a$?ilptn -8I-
parJnculslsoS luatulsa^ul0002 ,,9,,l!q!qx=l
AnanenxCoRpon.,rrrorv C,llrpusSenvrcgs
COPY FAtWvtARK CLIENT December 24,2002
Dr. HowardFarrell VicePresident Advancement of University and StudentAffairs Midwestern StateUniversity 3410TaftBlvd. WichitaFalls,TX 76308
*%
DearDr.Farrell: This LetterAmendment will confirmthe understanding betweenyou and our representatives that effectiveNovember 1, 20Q2, the Agreementbetween MIDWESTERNSTATE UNIVERSITY ("Client") and ARAMARKEDUCATIONAL SERVICES,lNC. ("ARAMARK") datedJune16,2000,as amended("Agreement") shallbe f ufiheramendedas f ollows: 1.
Subparagraph 12.D, 2002 CAPITALINVESTMENT, shall be added to the Agreement as follows: "D. 2OO2Capitallnvestment:ARAMARKagreesto investan amountup to One Hundredand ThreeThousandDollars($103,000) for foodseruicefacility renovations on Client'spremises(the"2002CapitalInvestment"). A R A MA R Ksh allam or tizeOne Hundr edThousandDollar s( $100,000) of the 2002CapitalInvestment on a straight-line basisovera periodof five (5) years by chargingthe Accounting Periodamortization chargeas a DirectCostupon completionof the renovations untilARAMARK's2OQ2CapitalInvestmentis fullyamoftized. Upon expirationof this Agreementor terminationor cancellationof this Agreementby eitherpady for any reasonwhatsoeverpriorto the complete amortizationof the 2002 Capital Investment,Client shall reimburse ARAMARKfor the unamodizedbalanceof the 2002 CapitalInvestmentplus all accruedbut unbilledinterestas of the date of expiration, terminationor cancellation, which interesthas accruedfrom the date the 2002 Capital Investment was finalizedat the PrimeInterestRate plustwo (2) percentage points per annum, computedeach AccountingPeriod on the declining balance.In the eventsuchamountis not paidto ARAMARKwithinthirty(30) daysof expiration, termination or cancellation, Clientagreesto pay intereston such amountat the PrimeInterestRate plus two (2) percentagepointsper annum, computed monthlyfrom the date of expiration,terminationor cancellation to the dateoaid.
Anev.lRx Torvrn I l0l Menrrr Srnrrr Purr.rorrpure,PA 19107-2988 2 l s 2 3 8J 0 0 0 0 ,
Dr. HowardFarrell December 24,2002 PageTwo
Titleto the equipment shallpassto Clientuponcompletionof amortization or earlierpaymentto ARAMARKof the unamoftized balance." In all otherrespectsourAgreementshallremainin fullforceand effect, lf the foregoingis in accordance with your understanding, pleasehavean authorized representative of Clientsignand datethe three(3) copiesof this LetterAmendment.Please retainone copy and returnthe remaining two (2) copiesof this LetterAmendmentat your convenience.
Verytrulyyours, ARAMARKEDUCATIONAL INC. SERVICES. ("ARAMARK")
MarkNelson VicePresident
Accepted tnis\Wa^y
ot T0(',
,2002. MIDWESTERN STATEUNIVERSITY ("Client")
trLr-lOl060
C,lupus Slnvrcrs
CLITTJT ,trAIIAII4ARK J u n e1 6 , 2 0 0 6
Dr, HowardFarrell, Vice President- UniversityAdvancement& StudentAffairs MidwesternStateUniversity 3410Taft Boulevarc WichitaFalls,TX 76308 DearDr. Farrell: This LetterAmendmentwill confirmthe understanding betweenyou and our representatives that effectiveMay 15, 2006, the Food ServicesManagementAgreementbetweenMIDWESTERN STATE UNIVERSIry("Client")and ARAMARKEDUCATIONALSERVICES,lNC. ("ARAMARK") datedJune 16,2000,as amended("Agreement"), shallbe furtheramendedas follows: 1. P a r a g r a p h1 2 , C A P I T A LI N V E S T M E N TS,u b p a r a g r a pE h s h a l lb e a d d e dt o t h e Agreementand shallread in its entiretyas follows. "12.
CAPITALINVESTMENT:
E. 2006 Financial Commitment: In consideration of Client's agreementto extendthe termof thisAgreementas describedin Paragraph23.A of this Agreement,and other good and valuableconsideration, the receiptand sufficiencyof which is herebyacknowledged, ARAMARKshallmake a financial commitmentto Client in an amount up to Three HundredThousandDollars ($300,000) (the "2006 Financial Commitment")for food service facility renovationsand for the purchaseand installationof food serviceequipment, areatreatment,signageand marketingmaterialsand othercostsassociated with the Campus Food Service Program on Client's premises. Any equipment purchasedby ARAMARKon Client'sbehalfshall be purchasedas a "sale-for resale"to the Client. Clientshall hold title to all such equipment(with the exceptionof those itemswhichbearthe name of ARAMARK,its logo,or any of its logo,servicemarksor trademarksor any logo, servicemarksor trademarks of a third party)upon such resale. Clientacknowledges that it is a tax-exempt entity and will provideARAMARKwith a copy of the appropriatetax-exempt certificate.The 2006 FinancialCommitmentshallbe amortizedon a straight-line basis over a period of eight (B) years, commencingupon the complete expenditureof the 2006 FinancialCommitment. The amortization will not be chargedto Clientas a DirectCost or an AllocatedCharge. Notwithstanding the foregoing,the amortization expenseof the 2006 FinancialCommitmentshallbe includedas a Direct Cost solely for purposes of determiningARAMARK's Entitlement as set forthherein. Upon expirationor terminationof this Agreementby eitherparty for any reason whatsoeverprior to the complete amortizationof the 2006 Commitment,Clientshall reimburseARAMARKfor the unamortized AR,*r,rRxro,u.Fin?ncial I l0l Menrcr Srnr.rr PHrreorrrHre, PA 19107 2 1 52 3 83 0 0 0
J u n e1 6 , 2 0 0 6 Page2 balance of the 2006 FinancialCommitmentas of the date of expirationor termination. In the event that such terminationis either (i) by Client for its convenience or (ii) by ARAMARKdue to Client'suncuredbreachof the termsof this Agreement,then, in additionto the outstandingunamortized balanceof the 2006 FinancialCommitment,Client shall pay to ARAMARK all accrued but unbilledinterest,calcuatedas set forth below, as of the date of expirationor termination.Such interestshallaccruefrom the date the FinancialCommitment was finalizedat One HundredTwenty-Five Percent(125%)of the PrimeRateper annumor One Percent(1%)per AccountingPeriod,whicheveris greater,on the unpaidbalance(or in the event local law prohibitsthe chargingof such rate, interestshall be chargedat the maximumlegal rate permitted),computedeach AccountingPeriodon the decliningbalance. ln the eventsuchamountsowingto ARAMARKare not paidto ARAMARKwithin30 days of expiration or termination, Client agrees to pay intereston such amounts at One HundredTwenty-Five Percent(125o/o) of the PrimeRate per annum or One Percent(1%) per month, whicheveris greater,on the unpaidbalance(or in the event local law prohibits the chargingof such rate, interestshall be chargedat the maximumlegal rate permitted), compoundedmonthlyfrom the date of expirationor termination, until paid. the date The rightof ARAMARKto chargeinterestfor late paymentshall not be construedas a waiverof ARAMARK'srightto receivepaymentof invoices within30 daysof the invoicedate." 2. Paragraph13, FINANCIALTERMS,SubparagraphsB and C shall be deleted and replacedin theirentiretvas follows. ..13.
FINANCIAL TERMS:
B. Meal Plan Rates: ARAMARKagreesto prepareand servemeals to Clientfor Clientto resellto its studentsparticipating in the Meal Plan at the followinorates: F A L LA N D S P R I N GS E M E S T E R S M e a lP l a n
Meal Rate
1 0m e a l 14meal 19meal
g a l a n c eD o l l a r s $ 4 . 7 0p e r m e a lp l u s$ 7 5 . 0 0D e c l i n i n B $3.69per meal plus $75.00DeclininqBalanceDollars q a l a n c eD o l l a r s $ 2 . 7 7p e r m e a lp l u s$ 6 5 . 0 0D e c l i n i n B
M e a lP l a n
lRat
p l u st a x C o m m u t eM r e m b e r s h i o$ 1 2 5 . 0 0 FreedomMembershio $600.00olustax S u mme1r 0me a lo l an $ 3 . 3 5o e r m e a l SummerConference B r e a k f a s- t$ 4 . 1 0 Lunch - $4.95 Dinner - $6.10 At the beginningof each semester,ClientshallfurnishARAMARKwith a listof all oersonsentitledto mealsat BoardPlanratesand shalladviseARAMARK
MZC--216484.02
J u n e1 6 , 2 0 0 6 Page3 weeklyin advanceof any changesin the list. Billingsto Clientfor each week of the AccountingPeriod will be based on the number of persons listed on the Wednesdaymorningof such week before breakfast. No allowancewill be made for meals or days whichcontractpatronsmiss,and partialday will be considered fulldaysfor billingpurposes. C. GasualMeals: ARAMARKshallprovidecasualmealsto Client's students,faculty,staffand guestsat the followingratesper meal: Breakfast Lunch
$5.25plustax
Dinner
$6.05plustax"
S5.85olustax
3. Paragraph23, TERMAND TERMINATION, Subparagraph A, shall be deletedin itsentirety, and in its placeshallbe insertedthe following: "23.
TERMAND TERMINATION:
A. Term: The term of this AgreementshallcontinuethroughJanuary 1,2014,unlessotheruvise terminated as providedfor elsewhereherein." ln all otherrespects,the Agreementshallremainin full forceand effect. This lettershall be attachedto, and becomepartof, the Agreement. pleasesign,date,and returnthe lf the foregoingis in accordance withyour understanding, enclosedcopyof this LetterAmendmentat your convenience. Very trulyyours, ARAMARKEDUCATIONALSERVICES. rNc. ("ARAMARK")
Acceptedthis
dav of June.2006.
MIDWESTERN STATEUNIVERSITY ("Client")
MZC--216484.02