1 2 3 4 Kipp Williams, Esq. (SBN 165688) John F. Whittemore, Esq. (SBN 307212) BLANCHARD, KRASNER & FRENCH, APC 800 Silverado Street, 2nd Floor La Jolla, California 92037 Telephone: (858) 551-2440 Facsimile: (858) 551-2434 5 6 Attorneys for Plaintiff, XENIA MANAGEMENT, LLC 7 8 SUPERIOR COURT OF THE STATE OF CALIFORNIA 9 COUNTY OF SAN DIEGO, CENTRAL DIVISION 10 11 XENIA MANAGEMENT, LLC, a California limited liability company, 12 13 Plaintiff, vs. 14 15 16 17 SAN DIEGO CHRISTIAN COLLEGE, a California corporation, and DOES 1-20, inclusive, Defendants. ) Case No.: ) ) COMPLAINT FOR: ) 1. BREACH OF CONTRACT; ) 2. MONEY HAD AND RECEIVED; AND ) 3. CONVERSION ) ) ) [IMAGED FILE] ) ) ) ) ---------------------------) 18 19 20 COMES NOW Plaintiff XENIA MANAGEMENT, LLC for causes of action against Defendant, and hereby alleges as follows: 21 The Parties 22 1. Plaintiff Xenia Management, LLC ("Xenia") is a California limited liability 23 company and has its principal place of business in La Mesa, California. '24 Philoxenia Food Services Company ("Philoxenia"). 25 26 27 28 2. Xenia does business as Defendant San Diego Christian College ("SDCC") is a California corporation with its principal place of business in Santee, California. 3. Jurisdiction is proper in this Court because at all relevant times SDCC operated in San Diego County. Moreover, all contracts that are the subject of this lawsuit were entered into Complaint 1 2 'n San Diego County and were to be performed in San Diego County. 4. Plaintiff is unaware of the true names and capacities of defendants sued herein as 3 DOES 1-20, and therefore sues these Defendants by such fictitious names. Plaintiff will amend 4 this complaint to allege their true names and capacities when ascertained. Plaintiff is informed, 5 believes, and thereon alleges that each of the fictitiously named DOE Defendants is responsible in 6 some manner for the allegations in this complaint. 7 2014-2015 Agreement 8 5. 9 10 Philoxenia was founded in 2014 by Taylor Maddox and Jesus Paredes, two former SDCC students, and provides food and beverage, cafeteria, and catering services. In September 2014, Plaintiff and SDCC entered into a one year contract, effective 6. 11 July 1,2014, under which Plaintiff would provide catering and cafeteria services for SDCC at its 12 campus in Santee, California for the 2014-2015 academic year. 13 Exhibit A and is hereinafter referred to as the "2014-15 Agreement." 14 Plaintiffs food services were provided as part of SDCC's resident dining program, 7. 15 or board plan. 16 provided "buffet style." 17 website and Facebook page for each upcoming week. 18 19 The agreement is attached as 8. The program included three daily meals (breakfast, lunch, and dinner) all Plaintiff was responsible for setting the menus, which were posted on its Section 3.7 provided the following chart showing the various dining rates for the board plan: 20 21 Meals per week Daily Rate SDC Payment to Philoxenia $17.72 $2,109 $17.72 $2,109 22 Freshman 19 23 Sophomores 19 Juniors 19 or 17 $17.72/$16.83 $2,109/$2,003 Seniors 19, 17 or 15 $17.72/$16.83/$15.32 $2,109/$2,003/$1,823 Commuters 10 or 5 $9.82/$4.95 $1,169/$589 24 25 26 ., 27 28 2 Complaint 9. 1 Section 3.7 included the following explanation below the chart: "Daily rate utilized 2 by [SDCC] in making weekly settlement payments to Philoxenia. 3 board plan days divided into total Philoxenia's semester board plan enrollment revenue per 4 column 4 in the table above." 5 column when budgeting for each upcoming semester. 6 10. Daily rate is the total semester Philoxenia relied on the payment amounts in the far right hand Section 2.2(b) further provided that Plaintiff would "[b]e provided the first 7 opportunity to acquire any of [SDCC's] catering service needs within the time period of the 8 Contract." 9 11. Plaintiff provided invoices for the meal plan and other programs at the end of each 10 week. SDCC was required to pay the invoices within thirty (30) days after the invoice date or 11 twenty-five (25) days after receipt of the invoice, whichever occurred first. 12 to pay interest on any amount not paid when due at the lesser of one and one-half percent (1.5%) 13 per month or the highest contractual interest rate allowed by California law. 14 2015-2016 Agreement 15 12. SDCC was required Plaintiff and SDCC entered into a second agreement, effective August 24,2015, for 16 the 2015-2016 academic year under which Plaintiff would continue the same services as provided 17 for in the 2014-2015 Agreement. 18 referred to as the "2015-16 Agreement." 19 13. This agreement is attached as Exhibit B and is hereinafter Section 1.2 provided: "This Contract shall be automatically renewed for an 20 additional one (1) year unless either party provides the other with written notice of termination at 21 least one hundred and twenty (120) days prior to the end of a term." 22 14. Section 2.2(b) provided that Plaintiff would handle the "[m]anagement of any and 23 all catering events [for SDCC], provided [Plaintiff] is informed with ample time to make the 24 necessary preparations." 25 26 27 28 15. Plaintiff accepted every catering event presented to it by SDCC during the course of their relationship. 16. On March 31, 2016, Robert Jensen, SDCC's Vice President for Advancement & Administration, emailed Taylor Maddox and Jesus Paredes and provided a request for proposal for 3 Complaint 1 food services ("RFP Letter"). 17. 2 This letter is attached as Exhibit C. The RFP Letter provided in part: "as a matter of contractual necessity, I need to 3 mention that if you decide not to participate in the RFP, or if you are not selected as the 4 professional food service provider moving forward, this letter will dually serve as the timely 5 notice of termination of contract per July 1,2016." 18. 6 SDCC's March 31, 2016 letter did not terminate the current agreement. Section 7 1.2 provided the contract would automatically renew unless "either party provides the other with 8 written notice of termination at least one hundred and twenty (120) days prior to the end of a 9 term." SDCC's attempt to make its purported termination conditional by providing that the 10 contract would only terminate if (1) Plaintiff "decide[ d] not to participate in the RFP ," or (2) if 11 Plaintiff was "not selected as the professional food service provider moving forward" is 12 ineffective. 13 conditions; rather, they simply had to terminate the contract, or it would automatically renew for 14 another year. 15 automatically renewed for the 2016-17 academic year. The bargained for 2015-16 Agreement did not permit SDCC to impose such Due to SDCC's failure to properly terminate the 2015-16 Agreement, it 16 FIRST CAUSE OF ACTION 17 (Breach of Contract) 18 19. Plaintiff hereby incorporates paragraphs 1-18 as if fully set forth herein. 19 20. As described herein, Plaintiff and SDCC entered into food service contracts for the 20 2014-2015 and 2015-2016 academic years, respectively. 21 21. Plaintiff performed all requirements under the contracts. 22 22. Plaintiff is informed, believes, and thereon alleges that its profits were typically 20 23 to 25 percent of its total revenue. r 24 25 26 23. Plaintiff contends SDCC breached the 2014-15 Agreement by failing to pay the following compensation: • Missed revenue pursuant to Section 3.7: Plaintiff is owed additional revenue of 27 $36,729.43 for the Fall 2014 Semester and $36,692.26 for the 2015 Spring 28 Semester based on amounts SDCC agreed to pay as seen in column 4 of the 4 Complaint chart in Paragraph 8. 1 2 3 4 24. SDCC breached the 2015-16 Agreement by failing to pay the following compensation: • Lost profits pursuant to Section 2.2(b): Based on SDCC's failure to present 5 Plaintiff with the chance to cater its graduation banquet in May 2016, Plaintiff 6 seeks lost profits of at least $1,800 (based on revenue of $9,000 for the 2015 7 graduation banquet) or an amount to be proven at time of trial. 8 Plaintiff seeks lost profits from SDCC's summer 2016 catering events (i.e. 9 athletic meals, new student orientation, and staff and summer caterings) Additionally, 10 because SDCC did not first present these opportunities to Plaintiff. 11 explained herein, Plaintiff accepted every catering opportunity it had 12 previously been presented with. 13 profits based on similar events in summer 2015) or an amount to be proven at 14 time of trial. 15 • As Plaintiff seeks $25,000 (estimated lost Outstanding revenue pursuant to Section 3.7: During the Spring 2016 16 Semester, Plaintiff provided board plan services for sixteen (16) weeks, but 17 was only paid for fourteen (14) weeks. 18 of at least $38,900.77, plus interest pursuant to contract in an amount to be 19 proven at time of trial. 20 approximately $2,000, or an amount to be proven at time of trial, for items 21 purchased by its managing partners due to SDCC's failure to keep current on 22 its invoices. 23 • Plaintiff is owed outstanding revenue Plaintiff is also owed credit card interest of Lost profits for the 2016-17 board plan pursuant to Section 1.2: Plaintiff is 24 owed the lost profits it would have received for its board plan services and 25 other catering events during the 2016-17 academic year because SDCC 26 anticipatorily breached the 2015-16 Agreement. 27 at least $130,000 for its board plan services, or an amount to be proven at time 28 of trial (this figure represents 20 percent of its estimated revenue of $650,000 5 Plaintiff seeks lost profits of Complaint 1 for the 2016-17 academic year). Plaintiff seeks an additional $13,000 for 2 missed catering events, or an amount to be proven at time of trial (this figure 3 represents 20 percent of its estimated revenue of $65,000 for SDCC catering 4 events). 5 SECOND CAUSE OF ACTION 6 (Money Had and Received) 7 25. Plaintiff hereby incorporates paragraphs 1-24 as if fully set forth herein. 8 26. SDCC received money at the beginning of each semester from its students for the 9 school's board plan and other catering events. 10 have been used to pay Plaintiff for its services. 11 27. A portion of the money SDCC received should Though SDCC received money specifically for the board plan dining services and 12 other catering events, the money was not used to fully compensate Plaintiff for its services under 13 the contracts described herein. 14 28. Plaintiff has been damaged in an amount to be determined at time of trial. 15 THIRD CAUSE OF ACTION 16 (Conversion) 17 29. Plaintiff hereby incorporates paragraphs 1-28 as if fully set forth herein. 18 30. Plaintiff had a legal right to the various funds described herein pursuant to its 19 20 contracts with SDCC. 31. SDCC intentionally and substantially interfered with the funds owed to Plaintiff 21 because SDCC collected money from its students for the board plan service and other catering 22 events, but failed to pay Plaintiff amounts owed pursuant to the contracts. 23 24 32. Plaintiff did not consent or otherwise acquiesce to SDCC's withholding of the funds owed to Plaintiff. 25 33. Plaintiff has been harmed in an amount to be determined at time of trial. 26 34. SDCC's conduct in failing to pay Plaintiff all funds owed under the contracts was a 27 28 substantial factor in causing Plaintiff harm. 35. SDCC's conduct was reckless, willful, and in conscious disregard of Plaintiff's 6 Complaint 1 rights, and supports a finding of punitive damages. 2 PRAYER 3 WHEREFORE, PLAINTIFF PRAYS AS FOLLOWS: 4 1. General damages according to proof; 5 2. Special damages according to proof; 6 3. Punitive damages according to proof; and 7 4. For such other and further relief as the court deems just and proper. 8 Dated: August _t_t_, 2016 BLANCHARD, KRASNER & FRENCH, APC 9 10 11 12 13 By: kiQWilliams, Esq. John F. Whittemore, Esq. Attorneys for Plaintiff, XENIA MANAGEMENT, ,LLC 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7 Complaint EXHIBIT A EXHIBIT A Philoxenia Food Service & San Diego Christian College Agreement San Diego Christian College 1 ~ ItClient" "~I"~ PU"I"'t,:r • 'f) TJ I) 'f) (') r.C1Jent~~jG(0mpany_ _ __ "~!"E dC," ,'\... ' omp.an.y..'_.__._... _. .._....E______,11Vll ,.,.l ...:l.enllC.es..._ ___1-\'. _____ ,_. _.__ ___'."' P,.h'l1 .QX!.aJ..W....!.!lO.' II 200 Riverview Parkway ' ,," ,,,-,, l) ~., , Santee, CA 92071 ,,._~ ' (619) 201 .. 8700 ~_, . sdcc.edu A~ fJiiG ~___.____,._"_____,_._._~_~o!i~ge fo~ nde_~or0~~~h":, c5 CHRISTIAN , " Article I Introduction 1.1 Purpose of Con tract: This Contract solidifies the terms and conditions by which the Client (San Diego Christian College) retains the services of the Company (Philoxenia Food Services Company) to manage and operate the Client's food service operations, which is an essential aspect of the Client's educational activities. Food service operations shall be solely for the use of faculty/staff, students, invited guests and other individuals or groups as designated by the Client. 1.2 Terms of Con tract: The term of this Contract shall be one (1) year, commencing on July 1st, 2014. This Contract shall be automatically renewed for an additional one (1) year unless either party provides the other with written notice of termination at least one hundred and twenty (120) days prior to the end of a term. If Client would like to establish a multi~year contract at any time, such matters can be discussed when/if Client desires to discuss such a contract. Article II Relationship of the Parties Involved (Client and Company) 2.1 Independent Contractor: The Company enters this Contract-and will remain throughout the terms of it-as an independent contractor. Nothing in this Contract renders either party the agent or partner of the other party for any reason. The Company will provide a complted W~9 to be on file with the Client. 2.2 Food Service Contract: Company will provide the following services: (a) Manage the Resident Board Plan at San Diego Christian College, which includes timely providing healthy meals in the locations, amounts and times designated with this Contract; (b) Be provided the first opportunity to acquire any of the Client's catering service needs within the time period of the Contract; (c) Company shall prepare and serve quality, diverse, nutritious and tasteful food and beverages for the faculty/staff, students, invited guests and other individuals or groups designated by the Client in accordance with the terms and conditions of this Contract; i. Company shall establish a committee consisting of Client students and faculty and any other members the Client so desires to provide feedback on the quality of food and service provided by the Company and immediately improve the quality of food if needed; ii. Collect cash or payment for food; iii. Supply food and beverages; iv. Provide employees to serve food and beverages; San Diego Christian College 2 ~ "Client" C't:"'I ' IYlJI) 'l)() 0~Cl:',ent~ . , p~(~~Tpany_ _ __ '1.0 '" d S1·']) .. :\...'U' '·"u, LI .. -.r. . i-\.,..... Ell 1 LXe.lllilJ.:.O.O. ,. B,J:Vlc.es__ DillpaU;)L_ _... ___.__. . __......____.. _ . _.__. ___,•...._ _._.--_._-,.1] '200 Riverview Parkway 1 1 ' .\... . , , Santee, CA 92071 ' (619) 201-8700 . sdcc,edu ',: ~ ;:" '. ..': ... "'-'.,: _ ::. :-:\,~ . :.. , :i:.. '. ":. ~. :r.;;;r;~~7".~,~~~';~~~~·;1:i::;-"<>;-~~" c5~If~~2ycontroCoffoocrandbeveragesserV~d~OI!~!!" found~rut~ Cd) Be responsible. for usual and customary cleaning and sanitation of the Food Service areaSi i. Client shall be responsible for any costs involved in setting up and cleaning the Food Service Areas for all non-food service functions; (e) Be responsible for housekeeping and sanitation in the food preparation storage and serving areas (s), shall clean the tops of tables and chairs in the cafeteria and shall transport refuse to the immediate refuse collection area; i. Client shall be responsible for the daily janitorial service for the public food service area, including the cleaning of cafeteria floors ~md/or carpets· and of all windows, walls, ceilings, drapes, fixtures, air ducts and hood vent systems, shall provide and maintain adequate fire extinguishing equipment for the Food Service areas, shall provide necessary pest control and shall be responsible for the removal of refuse from the immediate refuse collection area. ; (f) Be responsible to conduct bi~monthly inspections and reviews of its service in the areas of sanitation, product quality/variety and service; (g) Will require all management personnel to be trained in ServSafe food safety handling practices and will employ the latest "best of practices" to insure the healthiest food and the best food service performance. Article III Resident Dining Program 3.1 Paymentfor Dining Services: (a) Client shall pay Company for all food and beverage services provided pursuant to this Agreement. Client will be invoiced at the end of each week for all cafeteria services provided by the Company. Client will be invoiced separately for catering services and will be provided a singular invoice for each catered event. Client is expected to provide full payment for each invoice within 30 days of receipt. 3.2 Location: (a) Breakfast, Brunch, Lunch and Dinner: Company will provide Client's food services at the College Cafeteria (260 Riverview Parkway, Santee, CA). Any other locations shall require the written agreement of Client and Company. 3.3 Buffet Style Policy: Unlimited servings of all food and beverage items, vyith the exception of special event menus, shall be made available to Cafeteria Diners under the following conditions: San Diego Christian College "Client" . T:g U '1' T-I ~~A--• 1~,U RY 0 £lf~nt1~.N~11jlpany__ · -3 Philoxe.ma_Eo.Q.(lS.e.r_~l:es-:.c.o.mp.al1Y-._. ____.__. _._. ___•______ ...--.--------.-------.--.---.. . . 200 r~IV61Y16W Parkway - Santee, CA 92071 ' (619) 201-8700 . sdcc.edu fuEGO A Co~iege ~'H)l(bded Ol(b 1rn.»i'h, AN C H R -i3.%.FF01pp~nNi1ay IlmffResident Diners'"fu oneTi) portionofeach food iten1"-"-··_"--" c5 , the first time through the food line. Resident Diners who do not exit the College Cafeteria may return to the serving line or other designated areas thereafter. Any Diners who leave the College Cafeteria will not be able to return to the serving line without an incremental swipe or charge. 3.3.2 All food obtained by Resident Diners must be eaten within the College Cafeteria} unless the Resident Diner chooses the later addressed ((To Go ll option upon entering the College Cafeteria. 3.4 Serving Style: Unless otherwise agreed to by Client and Company) Company shall serve all Resident Dining Meals ((buffet style. Company will occasionally provide variations to this style and will coordinate the implementation of these variations in advance of said occasions with the Client. 1I 3.5 Menus: Company shall display entree menus for the upcoming week on its website and Facebook page by 12 am on the Sunday of said week. Menus will consist of food only) unless Company decides to list special beverages. All posted menus will be subject to change and will be stated as such on its website and Facebook page. 3.6 Unique Resident Diets: Company shall supply any medically necessary diets for Resident Diners when prescribed and approved in writing by a medical doctor and Client. 3.7 Dining Rates: Board Plan* Freshman Sophomores Juniors Seniors Commuters Meals per week Daily Rate SDC Payment to Philoxenia 19 19 $17.72 $17.72 $17.72/$16.83 $17.72/$16.83/$15.32 $9.82/$4.95 $2}109 '$2}109 $2109/$2}003 $2}109 L$2}OO3L$1}823 $1}169/$589 19 or 17 19} 17 01':1.5 10 or 5 *Daily rate utilized by SDC in making weekly settlement payments to Philoxenia. Daily rate is the total semester board plan days divided into total Philoxenia's semester board plan enrollment revenue per column 4 in the table above. The Client will be charged for meals only when the board plan is used for that meal. The Client will not be charged for meals when the board plan is not open or utilized. San Diego Christian College 4~ ")CI~entll . T B,JJT I-I • 1~}U RP 0 ,~ll:~n~rP-A~~nrpany_ _ _£hlloxenla£o.o.cLSe.r.v.LCB.s._Co.mp,al1.,Y.._ .....______._..,____---....---.----".-,-.---~-----,---. 200 Riverview Parkway . Santee, CA 92071 . (619) 201-8700 . sdcc.edu Guests Commuters APS Staff/faculty 12 and u 65 and over Breakfast 6.50 6.00 6.00 5.00 Lunch 8.50 7.50 7.50 7.00 Dinner 8.50 7.50 5.00 7.00 Brunch 11.00 10.00 9.00 9.00 6.50 6.50 Philoxenia 6.50/8.50/8.50/11.00 .. 5.S5 L7.30 (7.30 L9~ 5.85/7.30/4.85/S.50 4.85 L6.85 L6.85L8.5 0 6.35 6.35 3.9 Service Times Breakfast Lunch - Dinner 7:00~9:00am Monday 11:00~1:3012m 6:00·S:00pm 7:00~9:00am 11:00~1:30pm Tuesday 6:00-8:00pm 7:00-9:00am 11:00-1:30pm 6:00-8:00pm Wednesday 7:00-9:00am 11:00~1:30pm Thursday 6:00·8:00pm Friday 7:00 9:00am 11:00-1:30pm 6:00-8:00pm Saturday: Philoxenia will offer 2 meals - breakfast and dinner. Saturday meals w will be served at requested times. Service time limited to 2 hours for each meal. Sunday: Philoxenia will offer 2 meals - brunch (also open to local community) and dinner. Sunday meals will be served at requested times. Service time for Brunch not to exceed 3 hours; service time for dinner not to exceed dinner. Article IV Retail Sales 4.1 Locations Company shall provide retail sales in the College Cafeteria (260 Riverview Parkway, Santee, CA). Additionally, Company will occasionally provide Retail Sales at the Resident Apartments when granted permission from Client. Any other locations shall require written agreement by Client and Company. 4.2 Retail Prices Sale prices for retail segments shall be reasonable and competitive with the prices charged in comparable establishments for comparable products. Client can discllss Company's retail pricing anytime it so chooses if Client feels pricing is unfair. Unless otherwise agreed upon by Client and Company, Company will never undercut Client prices in liThe Perch" (Client's bookstore) if any identical products are sold by Company, meaning Company will provide identical prices for identical products to those sold in liThe Perch." 4.3 Client-Sponsored Function Prices The prices for Client-sponsored functions shall be established by mutual written agreement of Client and Company. San Diego Christian College IICI~ent" . ,TILUTH' 5: ~~L.r-~ 1~IU:rtPO§IA~n~i.~~rp.pany _ _ __.._"..___ ._~_. . ._____..._....._____."__,_,. . . £hllox.ema.Eo.o.d.SBr.v.lces__Go.mp.any._,.._...._ 200 Riverview Parkway • Santee, CA 92071 . (619) 201 .. 8700 . sdcc,edu \':,,:,',' . c5 AN flrEGO A Co!iega -"_~, , ": .. '" ' " '.'- ;'. ':: ":' W~ouR"idad OU1l Truth. c--r;i4.~Tlnt~ppn:rorjjf~(rTnirQj5ar~ij; FuncElonPaji,nerit Company Shall be'-------"-----· , responsible for the collection of amounts due from all C1ient~sponsored functions. Company·shall prepare and submit invoices to Client for individuals or groups served by Company at Client-sponsored functions. Article V Management and Personnel 5.1 Company Management/Professional Employees Company will provide sufficient and qualified management/professional employees who agree to work as those in community with Client. Client shall have the right to reasonably approve and to request removal from the premises any Company employee deemed undesirable by Client. The Company shall furnish fully trained managerial, supervisory, technical, administrative, clerical, and direct labor personnel, sufficient in number and qualifications to accomplish all work. The Company personnel shall be able to speak} read, write and understand the English language. All Company hired personnel will have a background check performed prior to employment and must be legal residents and eligible for employment in the United States. STANDARDS OF CONDUCT The Company is responsible for the conduct of its employees and shall take prompt} reasonable, and appropriate disciplinary action against employees for misconduct, malfeasance, misfeasance, or nonfeasance. The removal from) or barring of} a Company employee from a location shall not relieve the Company of its obligation to perform all work contained within this Agreement. Company personnel will be denied access to} removed from) and/or barred from locations when their presence is determined by the Client to be detrimental to the security, health, welfare, or wellbeing of persons) to normal operations, or to the accomplishment of work. The Client reserves the right to require removal of Company personnel whose activity) on or off location, endangers persons or property, or Company personnel whose presence at the location(s) presents an unacceptable risk to others. The ,Company shall provide supervisory and managerial authorities in support of the Agreement to include onsite supervision and there shall be a IIpersonin-charge that has equivalent qualifications during all hours of operation under this Agreement. lJ 5.2 Personnel Obligations The Company shall be solely responsible for employees) incl uding recruitment) employment, promotion) transfer) layoff and termination. Each party shall withhold and/or pay all applicable federal and state employment San Diego Christian College 6 ~ IICHene' . T BJ.JT H · l~)U RP 0 ~~11ent:..~Ace1fpany_'_ _Pl1.U.oxelllaE.o_o.d.S,eT'lLc.e,s_._Gmnpan.y__ ,__......... _..._, _____,__._______,__.________._.______ ._, ____, 200 Riverview Parkway . Santee, CA 92071 . (619) 20].8700 . sdcc.edu :' ~ T~.,..~«",=;>?~~j'>.:::·~;-Tt""~T~Ra~~r,- c5 AN flrEGO A Coliege Founded on ~'wun~. C Fflxi¥ 1fIlC§pcWij1rjlpsJ:~lance~insurance"pre·m1Ums~coi1tributTons to benefit'ana---'~-'-----'" deferred compensation plans, licensing fees and workers' compensation costs and shall file all required documents. 5.3 Equal Opportunity and Affirmative Action Employer Company shall not discriminate because of race, color, religion, sex, age, national origin, handicap or status as a Vietnam veteran, as defined and prohibited by applicable governmental law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities concerning Food Service employees. The Company affirms that it is an equal opportunity and affirmative action employer and shall comply with all applicable federal, California state and local laws. Article VI Inventories, Facilities, Equipment and Maintenance 6.1 Inventory of Equipment All equipment, furniture and fixtures necessary for operating the Food Service shall be provided by the Client at its expense. The Company shall provide the Client with a list of the necessary equipment, furniture, fixtures, china, small wares, service carts and other items required to complete Food Service at the cafeteria. All such property shall remain the assets of the Client throughout the term of this Agreement and upon expiration thereof. The Client shall replace any worn or broken equipment, fixtures and other items as necessary during the term of this Agreement upon reasonable. notice from the Company. 6.2 InventolY ofSmallwares Client and Company will jointly inventory all dishware, flatware, glassware and similar items (referred to as IIsmallwares" hereafter) owned by Client that shall be attached to this contract. Thereafter, Company shall maintain the agreed upon operating levels of these items at Company's expense.lf and when Company is to provide additional food service, it shall be the Client's responsibility to increase the inventory levels of such items as are required by the Company at the expense of the Client. 6.3 Office Facilities/Supplies Client shall provide-without charge to the Companysuitable office facilities, including the furniture and equipment for use by the Company in the performance of this Contract. Company shall take reasonable and proper care of the office facilities and shall return them to the Client at the termination of this Contract in good condition with ordinary wear and tear accepted. 6.4 Telephone Expenses Client shall be responsible for telephone installation costs. Company shall pay all long distance telephone billings in connection with the Food Service. San Diego Christian College 7 ~ IIClient" rI"\) TJ"}"1 1)'U' 'I~P f) (CIJent . -:A'C.:-l/C0mpany_ __ . E!"OD.LL ,1S.e.r,1!].ces.__ .,\..'-. P. h. 1'loxerua. ompan.y._.. ___._\..~)~'/ ....,..___..__ ,_.__.____,______ ,._". . _.....--,-..-"'''''''''-' -',[ . t 'ft"" 200 Riverview Parkway " .. }.- .. . Santee, CA 92071 ..... . (619) 201-8700 . sdcc.edu c5 Coli~~ge flrEGO A fCHmded on l'n.lth, C--HsWatnlgmqn-c£1 Q\ie~fsharrfurnfsh the service-s"'of its'''malntenance staffar s11'i:lfr----·-·---.. . .·authorize the use of outside maintenance services when required for proper maintenance and reparation ofthe Food Service facilities, including major repairs to the equipm~nt. Client shall be responsible for all costs of maintenance, including labor and supplies. However, Company shall maintain and repair all equipment that is damaged-in any manner-through the negligence of Company's employees, including labor and supplies. AN 6.6 Equipment Failure In the event of equipment failure directly caused by Client and causing loss of refrigerated or frozen products, Client shall reimburse Company for all loss based on the cost of price to Company for the lost products. If Client's dish machine equipment becomes inoperative for any reason other than the Company's negligence, Client shall reimburse Company for ~he cost of disposable wares used in lieu of reusable items until the dish machine equipment becomes operational. Company shall notify Client immediately upon Company's discovery of any such electrical or equipment failures. Additionally, in the event that any electrical or equipment failure is caused by the negligence of the Company. 6.7 Laundry, Linen and Uniforms Company shall be responsible for the costs of all laundry, linen and uniform services 6.8 Utilities Client shall be responsible for the cost of utilities consumed in the operation of the Food Service. 6.9 On-Campus Catering Client agrees that Company may use the facilities on the campus of the College for catering at off~campus events provided Company obtains consent of the Client in advance of said events, and this consent shall not be unreasonably withheld. If Company uses the facilities for such purposes, the Client shall be paid 6% of the gross revenue received by the Company from each such event. Company shall pay such amount to Client within thirty (30) days after the date of the event. Company shall obtain liability insurance coverage of one million dollars ($1,000,000.00) for any off-campus events for which Company utilizes the on-campus facilities. Article VII Billing and Financial Disclosure 7.1 Billing Company shall submit invoices to Client for the Meal Plan and other programs at the conclusion of each week. Company shall submit all other billings to Client as they occur. 7.2 Invoice Due Date Invoices for all charge sales shall be submitted to Client weekly and shall be paid by Client within thirty (30) days after the invoice date or twentyfive (25) days after receipt of the invoice, whichever occurs first. Client shall pay interest on any amount not paid when due at the lesser of one and one-half percent . San Diego Christian College 8 ~fr--., IICl!ent". TRU'"I;;T:i' PIlUltPO§~~n,1i~8.?-:A('errpany_ _ _PJ1il.oXf'.Jlla . E.o.o.d..S.ru:v.l.c.e.s.__C.o.mp.any__._____ . _. . _____.___ ._.___.'.'__.-.._.__...'."..'.__"". ___._._..... 200 Riverview Parkway . Santee, CA 92071 . (619) 201-8700 . sdcc.edu 7.3 Changes in Policies and Practices The parties agree to meet and confer in good faith regarding the financial terms of this Contract. The financial terms of this Contract shall be adjusted to reflect the change in Company's cost cause by any changes in the Client's current policies, practices, wage rates, employee benefits, whether mandated by law or not, serving methods and serving locations. Company's Meal Plan compensation shall be automatically adjusted to reflect any increases resulting from a change in the federal or state minimum wage rates, employee benefits, or any other Federal or State Law passed or enacted ruing the term of the contract which affects the costs of the Company. Company's calculations regarding such automatic adjustments shall be provided in writing to Client. 7.4 Financial Results (a) On the last day of the month, or on the termination of the Contract (whichev~r occurs earlier), Company shall prepare a financial statement and provide to the Client a statement for the month, year or accounting period in the case of early termination, reflecting the year~to"date financial results. These results will be reported to Client at monthly operational meeting with Client administrators (b) Net sales shall be defined as the total of weekly meal plan billings! cash sales and charge sales from the Food Service operations. This total shall be reported on each operating statement, less any and all applicable sales tax (c) Profit is defined as the excess. of net sales over the total of operating expenses, general support services allowance and the management fee. (d) Loss is defined as the excess of the total of operating expenses, general support services allowance and the management fee over net sales (e) Operating expenses are defined as all costs, charged and expenses incurred in connection with the Food Service operation including, but not limited to-costs! charges and expenses for the following: 1. Goods sold, including food, beverages and supplies 2. Labor, including salaries! wages, taxes, payroll, administration! benefits and human resources development 3. Other expenses, including but not limited to-charges based on manual insurance rates for workers' compensation, general 9~ San Diego Christian College ..... IIClient" ' I -' R'U 'I't:'.J • 1)U' 'f) 'I)() <.Ci:i,ent ... !~01ppany_ _ _~ Dh'l1.Qxema. . . E<.oD..I.l..0.e.r.V:Lc.es_. ,rl C· " it .. 1. n '~\I'" E ._. _____ , . . .. ....__ i\..J._ 'Oll1pany____ . __..__I.). ___ ._.___ ........._______ -_. ~:... ~ 200 Riverview Porkwoy , Sontee, CA 92071 ' (619) 201 ·8700 ' sdcc,edu cjAN fuEGO A College founded on Truth. c'I~i'-R-I-'ST-'f~Trfy-and otherinsurancema-inta-irle-d pursuant-totheCo'ntract-;--"'--'sales and use taxes, licenses, permits, information systems, proprietary material, flowers, decorations, smallwares, minor equipment, repair and maintenance of equipment supplied by the company and other services used in the Food Service operation, 4. General support services allowance to cover services provided by Company for the supervision of Company employees by executives not assigned to the Food Service operation 7.5 Economies o/Scale and Rebates The Company shall disclose within one week to Client all direct rebates applicable to food and supplies purchased for the performance of Company's obligation under this Contract. The written monthly and annual statements provided to Client shall include applicable rebates. Company shall be entitled to fifty percent (50%) of all rebates as an administrative fee to capture all such monies available. The other 50% will be paid to the Client. 7.6 Profit Distribution Any profit or loss shall be distributed as follows: (a) Annually, or on,the termination of the Contract (whichever occurs first), Company shall prepare a statement for the year, or accounting period in the case of early termination, reflecting the year-to-date profits and losses 1, If annual statement reHects a profit, Company shall retain an amount equal to seventy five percent (75%) of said profit. Client shall be paid the other twenty five percent (25%) of profit no later than 30 days from date of annual statement. 2. In the event of a loss, Company is responsible for any and all costs above and beyond the agreed upon daily rate. Article VIII Terms and Conditions 8.1 Compliance with Law Company shall comply with the laws, ordinances, rules and regulations of all applicable federal} California state} county and city governments} bureaus and departments concerning the sanitation} safety and health of the Food Service operation, and shall procure and maintain all necessary licenses and permits. Client shall cooperate as necessary for Company's compliance and procurement efforts. 8.2 Taxes Company shall bill and collect sales and use taxes} if applicable, on all meals and services rendered to Client or to others on Client's premises. If the parties disagree as to the taxability of any meals or services, Company agrees to promptly obtain a ruling from the appropriate government authority. In the event additional San Diego Christian Col1ege "Client" . rlS'l'R-'f]'I't: I." r PhilQxema.£o.ou. 10 ~ . nu' I>' 1)0 0(Client -, "i\.'C·r '/(,!empany_ _ __ II} _e,LV.lC.e.s___.•.Qmp.an.y_ ...__.\,___._. ______., ____._,____,._,,_~__. _,.__-"-~-- 200 Riverview Parkway "I , Santee, CA 92071 ' "_ (619) 201-8700 ' sdcc,edu r U \AN fuEGO · C()i~ege rWijJH~. A founded on :C J-Ila"Sis~rESaS£es.fle2\ a Nh'isYthe ·FoOCfServlce:ln theevent it is"determined"fEat-a--..- - - refund is due Company, other than from vending sales or sales of meals to the general public, then Company shall return the same, including any interest, to Client. Nothing herein is intended to absolve Company from the payment of employee taxes or city, state or federal income taxes. 8.3 Worker's Compensation Insurance Each parly shall maintain a system of coverage for worker's compensation in conformance with applicable state law covering all of its employees who may be employed for any purpose connected with the operation and management ofthe Food Service. 8.4 Comprehensive Insurance Company shall maintain and keep in force Comprehensive General Bodily Injury and Property Damage Liability insurance during the term of this Contract in the combined single limit of not less than one million dollars ($1,000,000.00), including but not limited to coverage for Vehicle Liability, Personal Injury Liability, Property Damage Liability, Blanket Contractual Liability and Products Liability, covering only the operations and activities of Company under this Contract and shall deliver a certificate evidencing such policy or policies to Client annually. The insurance policy or policies shall contain a covenant by the Company issuing said policies shall not be canceled unless a thirty (30) day prior written notice of cancellation is given to Client. Client shall be an additionaloinsured Company's policies of insurance to the extent Client is indemnified pursuant to Section 8.6 hereof. 8.5 Indemnification Except as otherwise expressly provided, Company and Client shall defend, indemnify and hold each other harmless from and against all claims, liability} loss and expense, including reasonable costs, collection expenses and attorney's fees incurred, which arise by reason of the acts or omissions of the indemnifying party, its agents or employees in the performance of its obligation under this Contract. This clause shall survive the termination of this Contract. 8.6 Trade Secrets and Proprietary Information During the term of this Contract, Company may grant to Client, as an operating expense, a nonexclusive license to use certain proprietary information of Company, including but not limited to recipes, dietary surveys and studies, management guidelines and procedures, software programs, and computerized data bases, operating manuals, and similar compilations and documents regularly used in the operation ofthe business of Company. Client shall not disclose any of Company's trade or proprietary secrets or confidential information, directly or indirectly, during or subsequent to the term of this Contract. Client further agrees not to photocopy or otherwise duplicate any such material without the prior specific written consent of Company. All recipes, sign age, files, records, documents, compilations, manuals and similar items shall remain the exclusive property of Company and shall be returned to Company immediately upon termination of this Contract. . AlL San Diego Christian College 11 "CI!ent" . 'I'I\.UT,;r~I. PJJrtPOS(Wen.tj~f.~w.:t7~_'ornpany--.P.hllox.enuLEood.Ser.v.:l.c.e.s:.:c.o.mpany... __.__....____..._.-.-. _______.._..__. ~,. __. _~__ 200 Riverview Parkwqy . Sqntee, CA 92071 ' (619) 201·8700 . sdcc.edu c5 Coih~ge AN fliE'GO A founded on lfl'uUn. C I~· 71~s~:ig{imi1i1frlAs ~ntract rni:ty notbe asslgnedby either p.arW without the--------·--·-written consent of the other party, except that either party may, without prior approval and without exoneration of any of its responsibilities, assign this Contract to any affiliate or wholly-owned subsidiary. 8.8 NoUces Any notice of communication required or permitted to be given under this Contract shall be in writing and shall be either served personally, delivered by courier or sent by United States registered or certified mail, postage prepaid with return receipt requested, addressed to the other party as follows: To Client: San Diego Christian College 200 Riverview Parkway Santee, CA, 92071 To Company: Philoxenia Food Service 964·0 Mission Gorge Rd. Suite B, #21.8 Santee, CAl 92071-3854 8.9 Catastrophe Neither Company nor Client shall be liable for the failure to perform their respective obligations under this Contract when such failure is caused by fire, explosion, water, act of God, civil disorder or disturbances, strikes, vandalism, war, riot, sabotage, weather and energy-related closings, governmental rules or regulations, or like causes beyond the control of such party, nor for real or personal property destroyed or damaged due to such causes 8.10 Termination Without Cause Either party may terminate this Contract at any time by giving at least one hundred twenty (120) days' prior written notice to the other party of the intention to terminate this Contract without penalty to the party. 8.11 Termination With Cause In the event either party breaches a material provision herein, the non-breaching party must give the other party notice of such cause. In the event such cause is remedied within twenty (20) days in the case of failure to make payment when due or lwenty (20) days in the case of other breaches, the notice shall be null and void. If such cause is not remedied within the specified period, this Contract shall terminate at the option ofthe non~breaching party upon the expiration of such remedy period. The rights of termination referred to in this Contract are not intended to be exclusive and are in addition to any other rights available to either party at law or in equity 8.12 Construction and Effect A waiver of any failure hereunder shall not be construed to be-nor shall it constitute-a waiver of any subsequent failure. This Contract supersedes all prior negotiations, rep'resentations or contracts, if any exist. San Diego Christian College 12 ~. "Client" '-["'1) 'Urr" ' 'jJ"U" '[)P (). cG1Jent . ... . :. .: Jt;0lil1pany • • • . . \" . If I .' L ---.EhlloxenlaEo.o.d-S.e.l:.v.1Ces..o.mp.a.ny:-_ .. ~__.-___.__. ____ . -.--__ .... __\~.l.. ._.._._ ...__ . -". ---... -._-.--,,---- 't 200 RlvelYlew Pqrkwqy /I '."- .) . Scm1"ee, CA 92071 . (619) 201·8700 . sdcc.edu c5~~a~£.Ph headings are Used solely for con:en~e~~:fnj-::a~:~e~_ut~ deemed to limit the subject of the articles and paragraphs or be considered in their interpretation. The exhibits referred to herein are made part of this Contract by the respective references to them. This Contract may be executed in several counterparts, each of which shall be deemed an original. This agreement may be executed by way of facsimile signature. 8.13 SeverabiliLy If any term or provision of this Contract or the application thereof to any persons or circumstances shall to any extent or for any reason be invalid or unenforceable, the remainder of this Contract and the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this Contract shall be valid and enforced to the fullest extent permitted by law 8.1.4 Amendment's to Agreement Each of the articles and exhibits shall remain in effect throughout the term of this Contract unless the parties mutually agree, in a written document signed by both parties to amend, add or delete an article or exhibit 8.15 Controlling Law The parties hereto agree that the laws'ofthe State of California shall apply to the interpretation and enforcement of this agreement Venue shall be San Diego, California . . hi-WItness Hereof, the duly authorized officers of the parties have executed this Contract as of the date written below BY:-b~~~~~~~--- _____________~--_________________ PHILOXENIA FOOD SERVICE By: ______________________________________________________ Printed Name & Title: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ San Diego Christian College 13 G~ "Client" 'I"o '(}"f" T • I)'U' 'r) 'I) () cG1JenL-..:· . . (;(i}Jjy,)pany _ _ __ 0hiLoxenla...J. . ....aO'.LL rlS' .{\... .'II' , ompau:)L11 ___________ .\..... ...) .f~ C T.r.:. ._._. ____ ._....... __ ._____,\.. __________ . ___.. ___. .__. n [;' 't .e.n.~lc.eS__ 200 Riverview Parkway ~. , Santee, CA 92071 . (619) 201-8700 . sdcc.edu San Diego Christian CoJlege II)Cliene' . TR.U'I;)-l' ~~-k--> 14 P ,PKP 0 SGf~enj;~17(@?rpany_ _ __ ,L.hil.o.xemaEo.o.cL£e.r:Y.:lces_Compan¥_,____________,. ___...___~____._.____,__.._. . ___.__ 200 Riverview Parkway . Santee, CA 92071 . (619) 201-8700 . sdcc.edu EXHIBIT EXHIBIT • Philoxenia Food Service & San Diego Christian College Agreement " '\ San Diego Christian College "Client" Philoxenia Food Services "Company" \"" 1 'Client ~company_ _ __ \ \ " Article I In traduction 1.1 Purpose a/Contract: This Contract solidifies the terms and conditions by which the Client (San Diego Christian College) retains the services ofthe Company (Phlloxenia Food Service) to manage and operate the CHent's food sel'Vice operations, which is an essential aspect of the Client's educational activities. Food sel'Vice operations shall be solely for the use of facuity /staff, stUdents, invited guests and othel' individuals or groups as designated by the Client. .~ 1.2 Terms 0/ Contract: The term of this Contract shall be one (1) year, commencing on August 24,2015. This Contract shall be automatically renewed fol' an' additional one (1) year unless either party provides the other with written notice of termination at least one hundred and twenty (120) days prior to the end of a term. If Client would like to establish a multi-year contract at any time, such matters can be discussed when/if Client desires to discuss such a contract. Article II Relationship a/the Parties Involved (Client and Company) 2.1 Independent Contractor: The Company enters this Contract-and will remain throughout the terms of it-as an independent contractor. Nothing in this Contl'act renders either party the agent or partner of the other party for any reason. 2.2 Food Service Contract: Company will provide the following services: (a) Management of the Resident Board Plan at San Diego Christian College (b) Management of any and all catering events, provided the Company Is informed with ample time to make the necessary preparations t (c) Company shall prepare and serve quality, diverse, nutritious and tasteful food and beverages for the faculty/staff, students, invited guests and other individuals or groups designated by the Client in accordance with the terms and conditions of this Contract. 2 San Diego Christian College "Client" Philoxenia Food Services "Company" Client M/company_ _ __ Article III Resident Dining Program 3.1 Paymentjor Dining Services: (a) Client shall pay Company for all food and beverage services provided pursuant to this Agreement. Cllent will be invoiced at the end of each week for all cafeteria services provided by the Company. Client will be invoiced separately for catering services and will be provided a singular invoice for each catered event. Client is expected to provide full payment for each invoice within 30 days of receipt. . 3.2 Location: . (a) Unless otherwise specified beforehand, Company shall operate at the following address: 260 Riverview Pkwy., Santee, CA, 92071 3.3 Buffet Style Policy: Unlimited servings of all food and beverage items, with the exception of special event menus, shall be made available to Resident Diners under the following conditions: 3.3.1 Company may limit Resident Diners to one (1) portion of each food item the first time through the food line. Resident Diners who do not exit the College Cafeteria may return to the serving line or other designated areas thereafter. Any Diners who leave the College Cafeteria will not be able to return to the serving line without an incremental swipe or charge. 3.3.2 All food obtained by Resident Diners must be eaten within the College Cafeteria, unless the Resident Diner chooses the later addressed "To Go" option upon entering the College Cafeteria. 3.4 Serving Style: Unless otherwise agreed to by Cllent and Company, Company shall serve all Resident Dining Meals "buffet style." Company will occasionally provide variations to this style and will coordinate the implementation of these variations in advance of said occasions with the Client 3 San Diego Christian College "Client" Ph,iloxenia Food Services "Company" Client~Company_ _ __ I', ·. _ _~_ _ _ _ _ _~_ _ _ _ _L - ,_ _ _ .. ___ :=L~ __ "~ ________ 3.5 Dining Rates' DuilyRate $17.50 $16.83 $15.32 Meal-Plan (Meals per Weel{) 19 17 15 10 5 $9,82 $4,95 • *These per day charges are uniform charges for each of the seven days in the week, 3,6 Service Times Monday Tuesday Wednesday Thursday Friday' Breakfast Lunch Dinner 7:00 am - 9:00 am 7:00 am - 9:00 am 7:00 am - 9:00 am 7:00 am - 9:00 am 7:00 am - 9:00 am 11:30 am - 2:00 pm 11:30 am - 2:00 pm 11:30 am - 2:00 pm -11:30 am - 2:00 pm 11:30 am - 2:00 pm 5:30 pm - 7:30 pm 5:30 pm - 7:30 pm 5:30 pm - 7:30 pm 5:30 pm - 7:30 pm 5:30 pm - 7:30 pm Saturday: Breal{fast: 9 am - 11 am Dinner: 5 pm - 7 pm Sunday: Brunch: 11 am - 2 pm Dinner: S pm - 7 pm 3.7 Guest Meals in College Cafeteria Guest Commuter 4 San piego Christian College "Client" PhiIoxenia [lood Services "Company" Client Staff Nrcompany_'_ _ __ '. ~~ Breakfast Lunch Dinner $6.50 $8.25 $8.25 $4;85 $7.00 $7.00 $6.00 $7.50 $7.50 Article IV Retail Sales 4.1 Locations Company shall provide retail sales in the Dirfing Hall, both during and , between meal hours. Additionally, Company will occasionally provide Retail Sales at the Resident Apartments when granted permission from Client. Any other locations shall require written agreement by Client and Company. 4.2 Retail Prices Sale prices for retail segments shall be reasonable and competitive with the prices charged in comparable establishments for comparable products. Client can discuss Company's retail pricing anytime it so chooses if Client feels pricing is unfair. Unless otherwise agreed upon by Client and Company} Company will never undercut the prices for products the Client sells in the student store. Also, to the best of our ability, we, will not offer any identical products as those sold in the Client's student store. 4.2.1 Retail Revenue Distribution Client shall receive 5% of all retail revenue, and Company can demonstrate its retail revenue upon Client request 4.3 Company-Sponsored Function Functions Company may solicit business and use Client's facility only when Client authorizes the use of its facility. Article V Management and Personnel 5.1 Company Management/Professional Employees Company will provide sufficient and qualified management/professional employees for operating the Resident Board Plan Program5.1.2 Standards of Conduct Company is responsible for the conduct of its employees and shall take prompt, reasonable and appropriate, disciplinary action against employees for misconduct, malfeasance, misfeasance or nonfe'asance. The removal from, or barring of, a Company employee from a location 5 San Diego Christian College "Cljent" Philoxenia Food Services "Company" Client /t{f7company_ _ __ '. shall not relieve the Company of its obligation to perform all work contained within this agreement 5.2 Personnel Obligations The parties herein shall be solely responsible for their respective employees on their respective payrolls, including recruitment, employment, promotion, transfer, layoff and termination. Each party shall withhold and/or pay all applicable federal and state employment taxes and payroll insurance, insurance premiums, contributions to benefit and deferred compensation plans, licensing fees and workers' compensation costs and shall file all required documents. 5.3 Equal Opportunity and Affirmative Action Employer Comptmy shall not discriminate because of race, color, religion, sex, age, national origin, handicap or status as a Vietnam veteran, as defined and prohibited by "applicable governmental law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities concerning Food Service employees. Company affirms that it is an equal opportunity and affirmative action employer and shall comply with all applicable federal, state (California) and local laws. Article VI Inventories, Facilities, Equipment and Maintenance 6.1lnventolY of EqUipment All equipment, furniture and fixtures necessary for operating the Food Service shall be provided by the Client at its expense. The Company shall provide the Client with a list of the necessary equipment, furniture, fixtures, china, small wares, service carts an-d other items required to complete Food Service at the cafeteria. All such property shall remain the assets of the Client throughout the term of this Agreement and upon expiration thereof. The Client shall replace any worn at' broken equipment, fixtures and other items as necessary during the term of this Agreement upon reasonable notice from the Company. 6.2 Inventory of Smallwares Client and Company will jointly inventory all dishware, flatware, glassware and similar items (referred to as "smallwares" hereafter) owned by Client that shall be attached to this contract. Thereafter, Company shall maintain the agreed upon operating levels of these items at Company's expense. If and when Company is to provide additional food service, it shall be the Client's responsibility to incr~ase the inventory levels of such items as are required by the Company at the expense of the Client. 6.3 Equipment Failure In the event of equipment failure causing loss of refrigerated or frozen products, Client shall reimburse Company for all loss based on the cost of price to Company for the lost pro~ucts. If Client's dish machine equipment becomes 6 'AU;San Diego Christian College "Client" Client / .I.{/ /Company_ _ __ Philoxenia Food Services "Company" 1 inoperative for any reason other than the Company's negligence, Client shall reimburse Company for the cost of disposable wares used in lieu of reusable items until the dish machine equipment becomes operational. Company shall notify Client immediately upon Company's discovery of any such electrical or equipment failures. Additionally, in the event that any electrical or equipment failure is caused by the negligence of the Company. 6.4 Laundry, Linen and Uniforms Company shall be responsible for the costs of all laundry, linen and uniform services • 6.5 On-Campus Catering Client agrees that Company may use the facilities on the campus of the College for catering at off-campus events, and the Client shall receive 5% of the gross revenue from any such events. Company shall pay such amount to .. Client within thirty (30) days after the date of the event. Company shall obtain liability insurance coverage of five hundred thousand dollars ($500,000.00) for any off-campus events for which Company utilizes the on-campus facilities. Article Vll Billing and Financial Disclosure 7.1 Billing Company shall submit invoices to Client for the Meal Plan at the conclusion of each week, and based upon the number of board participants. Company shall submit all other billings to Client as they occur. 7.2 Payment Terms, Discounts and Penalties 7.2.1 Terms (a) Meal-plan Invoices: Client will provide Company with payment via Net 30 Terms (b) Catering Invoices: Client will provide Company payment via Net 30 Terms 7.2.2 Discounts (a) If Client provides on-time payment for 16 weekly meal-plan invoices during a semester, Client will receive cred'it in the amount of 1.5% of Meal-plan Service Revenue for the respective semester 7.2.3 Penalties (a) Interest Rates 7 Sa.n Diego Christian College "Client" Philoxenia Food Services "Company" Client M!Campany_ _ __ .~ "'t, -'- .--. 1. Company will apply a monthly inter~st charge of 2.125% for every day an invoice is late 7.3 Changes in Policies and Practices The parties agree to meet and confer in good faith regarding the financial terms of this Contract. The financial terms of this Contract shall be adjusted to renect the change in Company's (jost caused by any changes in the Client's current policies', practices, wage rates, employee benefits, whether mandated by law or not"serving methods and serving locations. Company's Meal Plan compensation shall be automatically adjllsted to renect any increases resulting from a change in the federal or state minimum wage rates, employee benefits, or any other Federal or State Law passed or enacted ruing the term of the contract which affects the costs of the Company. Company's calculations regarding such automatic adjustments shall be provided in writing to Client. 7.4 Financial Results (a) Net sales shall be defined as the total of weekly meal plan billings, cash sales and charge sales from the Food Service operations. (b) Profit is defined as the excess of net sales over the total of operating expenses, general support services allowance and the management fee. (c) Loss is defined as the excess of the total of operating expenses, general support services allowance and the management fee over net sales Cd) Operating expenses are defined as all costs, charged and expenses incurred in connection with the Food Service operation including, but not limited to-costs, charges and expenses for the following: 1. Goods sold, including food, beverages and supplies . 2. Labor, inCluding salaries, wages, taxes, payroll, administration, benefits and human resources development 3: Other expenses, including but not limited to-charges based on manual insurance rates for workers' compensation, general San Diego Christian College "Client" Philoxenia Foo,d Services "Company" 8 Client K: ' /Company_ _ _-'-- _... _---- -----_._- liability and other insurance maintained pursuant to the Contract, sales and use taxes, licenses, permits, information systems, proprietary material, flowers, decorations, smallwares, minor equipment, repair and maintenance of equipment supplied by the company and other services used in the Food Service operation. 4, General support services allowance to cover services provided by Company for the supervision of Company employees by executives not assigned to the Food Service operation 7.5 Profit Distribution Any profit or loss shall be distributed as follows: (a) Annually, or on the termination of the Contract (whichever occurs first), Company shall prepare a statement for the year reflecting revenue less expenses 1. If annual statement reflects a profit, Company shall retain an amount equal to seventy-five percent (75%) of said profit. The remaining twenty-five percent (25%) of the profit shall be paid to the .Client within one hundred eighty (180) days of the final day of the contract period' Article VIII Terms and Conditions 8.1 Compliance with Law Company shall comply with the laws, ordinances, rules and regulations of all applicable Federal, State (California), county and city governments, bureaus and departments concerning the sanitation, safety and health of the Food Service operation, and shall procure and maintain all necessary licenses and permits. Client shall cooperate as necessary for Company's compliance and procurement efforts. 8.2 Taxes Company shall bill and collect sales and use taxes, if applicable, on all meals and services rendered to Client or to others on Client's premises. If the parties disagree as to the taxability of any meals or services, Company agrees to promptly obtain a ruling from the appropriate government authority. In the event additional taxes are assessed against the Food Service, Client shall reimburse Company upon receipt .of an ihvoice for all such taxes and the amount of interest and penalties, 9 San Diego Christi'an College "Client" Client OCcompany_ _ __ Philoxenia Food Services "Company" .. ~_ ~.~_~I?_-L-I .. attorney's fees and costs which are proximately caused by the acts or omissions of Client. In the event it is determined that a refund is due Company, other than from vending sales or sales of meals to the general public, then Company shall return the same, including any interest, to Client. Nothing herein is intended to absolve Company from the payment of employee taxes or city, state or federal income taxes. The foregoing obligation shall survive the termination of this Agreement and continue until the applicable statute of limitation period has expired . • 8.3 Worker's Compensation Insurance Each party shall maintain a system of coverage for worker's compensation in conformance with applicable state law covering all of its employees who may be employed for any purpose connected with the operation and management of the Food Service. 8.4 Comprehensive Insurance Company shall maintain and keep in force Comprehensive General Bodily Injury and Property Damage Liability insurance during the term of this Contract in the combined single limit of not less than one million dollars ($1.,000,000.00), including but not limited to coverage for Vehicle Liability, Personal Injury Liabllity, Property Damage Liability, Blanket Contractual Liability and Products Liability, covering only the operations and activities of Company under this Contract and shall deliver a certificate evidencing such policy or policies to Client annually. 8,5 Waiver of Recovery Each party to .this Contract mutually agrees to waive its !'ights, as well as the rights of its insurer to recover from the other party for any damage or loss to the party's building, equipment, improvements or other property whatsoever because of fire, explosion or any other cause normally covered in standard form Fire and Casualty lnsmance Policies with extended endorsements. Client shall keep its building, including the food service area, its contents and other property insured against loss or damage by fire, explosion and/or similar casualties 8,6 Indemnification Except as otherwise expressly prOVided, Company and Client shall defend, indemnify and hold each other harmless from and against all claims, liability, loss and expense, including reasonable costs, collection expenses and attorney's fees incurred, which arise by reason of the acts or omissions of the indemnifying party, Its agents or employees in the performance of its obligation undel,this Contract. This clause shall survive the termination of this Contract. 8.7 Trade Secrets and Proprietary Information During the term of this Contract, Company may grant to Client, as an operating expense, a nonexclusive license to use certain proprietary information of Company, including but not limited to reCipes, dietary surveys and studies, management gUidelines and procedures, software programs, and computerized data bases, operating manuals, and similar 10 ,J\V San Diego Christian College "Client" Client , VI, /Company_ _ _---'" Philoxenia Food .,Services "Company" " -' - ' -".-,------------........------~ compilations and documents regularly used in the operation of the business of Company. Client shall not disclose any of Company's trade or proprietary secrets or confidential information, directly or indirectly, during or subsequent to the term of this Contract. Client further agrees not to photocopy or otherwise duplicate any such material without the prior specific written consent of Company. All recipes, signage, files, records, documents, compilations, manuals and similar items shall remain the exclusive property of Company and shall be returned to Company immediately upon termination of this Contract. ' 8.8 Assignment This Contract may be assigned by Compan·y if Client consistently fails to provide timely payment and, therefore, forces company to acquire additional funding. Either party may, without prior approval and without exoneration of any of its responsibilities, assign this Contract to any affiliate or wholly-owned subsidiary. 8.9 Notices Any notice of communication required or permitted to be given under this Contract shall be in writing and shall be either served personaly via email, delivered by courier or sent by United States registered or certified mail, postage prepaid with return receipt requested, addressed to the other party as follows: To Client: San Diego Christian College 200 Riverview Parkway Santee, CA, 92071 To Company: Philoxenia Food Service 260 Riverview Pkwy. Santee, CA, 92071 8.10 Catastrophe Neither Company nor Client shall be liable for the failure to perform their respective obligations under this Contract when such failure is caused by fire, explosion, water, act of God, civil disorder or disturbances, strikes, vandalism, war, riot, sabotage, weather and energy-related closings,governmental rules or regulations, or like causes beyond the control of such party, 'nor for real or . personal property destroyed or damaged due to such causes 8.11 Termination Without Cause Either party may terminate this Contract at any time by giving at least one hundred twenty (120) days' prior written notice to the other party of the intention to terminate this Contract, which must be signed and dated by the party intending to terminate this contract. . 11 San Diego Christian College "Client" Client '( \{) /Company_ _ __ Philoxenia Food Services "Company" Ar- ·~ 'S ·.~·I ' 8.12 Termination With Cause In the event either party breaches a material provision herein, the non-breaching party must give the other party notice of such cause. In the event such cause is remedied within twenty (20) days in the case of failure to make payment when due or twenty (20) days in the case of other breaches, the notice shall be null and void. If such cause is not remedied within the specified period, this Contract shall terminate at the option of the non-Qreaching party upon the expiration of such remedy period. The rights of termination referred to in this Contract are not intended to be exclusive and are in addition to any other rights available to either party at law or In equity 8.13 Construction and l!,1fect A waiver df any failure hereunder shall not be construed to be-nor shall it constitute-a waiver of any subsequent failure. This Contract supersedes all prior negotiations, representations or contracts) If any exist. The article and paragraph headings are used solely for convenience and shall not be deemed to limit the subject of the articles and paragraphs or be considered in their interpretation. The exhibits referred, to herein are made part of this Contract by the respective references to them. This Contract may be executed in several counterparts, each of which shall be deemed an original. This agreement may be executed by way of facsimile signature. 8.14 Severability If any term or provision of this Contract or the application thereof to any persons or circumstances shall to any extent or for any reason be invalid or unenforceable, the remainder of this Contract and the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this Contract shall be valid and enforced to the fullest extent permitted by law 8.15 Amendments to Agreement Each of the articles and exhibits shall remain in effect throughout the term of this Contract unless the parties mutually agree, in a written document signed by both parties to amend, add or delete an article or exhibit 8.16 Controlling Law The parties hereto agree that the laws of the State Of California. shall apply to the interpretation and enforcement of this agreement 12 San Diego Christian College "Client" Philoxenia Food ~ervices "Company" ClIent~Company_ _ __ '~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ L_ _- - - -_ _ _ _ _ _2 • In Witness Hereof, the duly authorized officers of the parties have executed this Contract as of the date written below By:--~---...,.£.--_l_+_-------------- Printed Name & Title: Date: kJw-~~ vf AI~...,;-/ v/l.!.,wirfrh- ------=/~04-"'f-i-....::...1-()-'-rt-,~------ PHILOXENIA FOOD SERVICE By:---------------------------------~~------ Printed Name & Title: _______-'-_ _ _ _ _ _ _ _ _ _ _ _ _ __ 13 Sari Diego Christian College "Client" Philoxenia Food Services "Company" Client ~company---- '., EXHIBIT EXHIBIT A College founded on Truth. March 31, 2016 Taylor Maddox & Jesus Paredes - Managing Partners Phlloxenla Food Service 260 Riverview Parkway Santee, CA. 92071 CAll FOR REQUEST FOR PROPOSAl- FOOD SERVICES Dear Jesus and Taylor, This letter serves as an initiation into the process for a formal request for proposal (RFP) for food services in partnership with San Diego Christian College in preparation for the academic year 2016-2017, and beyond. As you may remember from our conversations last year, we discussed that it Is normal business practice to engage the market in regular intervals through an RFP. A detailed RFP document will be sent to you and other professional food service providers In the coming days. It will outline the process and requirements for the scope of services as we move forward. In honor of our working relationship, I am sending this letter to you first. You will also be the first company to receive the RFP once it is sent out. Finally, as a matter of contractual necessity, I need to mention that if you decide not to participate in the RFP, or if you are not selected as the professional food service provider moving forward, this letter will dually serve as the timely notice of termination of contract per July 1, 2016. Should you have any questions, please do not hesitate to contact me. Sincerely, Robert Jensen Vice President for Advancement & Administration 200 Riverview Pkwy, Santee, 92071 . (619) 201-8700 • SDCC.EDU