4. PRODUCT MIX AND PRICING 4.1. Product Mix and Availability Contractor shall provide for retail sale a mix of Beverage products and packages as agreed to by the parties. The initial Beverage product and package mix are set forth in Attachment A, Beverages and Service Containers Price List. Newly developed, produced or acquired products, not available as of the date of this Contract, may be added after WOU consent and through written amendment of this Contract. Both parties agree to discuss availability, pricing, financial requirements and any additional terms and conditions necessary to make available newly developed, produced or acquired products, subject to WOU’s approval at its sole discretion. Contractor will provide each Beverage in sufficient quantities as may be required by WOU to fulfill its needs under this Contract. If Contractor fails to provide sufficient quantities requested by WOU within a reasonable timeframe as specified by WOU, then WOU may obtain a substitute beverage for any such Beverage. If Contractor fails to provide sufficient quantities of each Beverage within 30 days of initial notification, then WOU in addition to pursuing remedies available elsewhere in this Contract, may remove the unavailable product from the definition of Beverage. This does not limit the availability of other remedies set forth in this Contract. 4.2. Product Responsibility Contractor agrees to only carry products that have a positive reputation in the media. If, in WOU’s sole discretion, a product generates a negative reputation in the media, WOU has the right to immediately remove, and/or require Contractor to remove, the product from the Monmouth Campus and no longer permit the product in the future. In addition, WOU may replace the product with a similar competing product. 4.3. Beverage Service Containers Contractor shall provide beverage cups, containers, and lids to WOU for resale at the prices listed in Attachment A, Beverages and Service Containers Price List. Contractor prices for such items should be competitively priced. WOU may use self-branded and generic cups and lids and may purchase them from other suppliers if available at prices lower than those offered by Contractor. 4.4. Beverage and Product Pricing Contractor shall sell Beverages and product to WOU at prices no higher than those set forth in Attachment A. Contractor must adhere to and maintain the price commitments and incentives listed in Attachment A for a minimum of three (3) years. After three (3) years, Contractor may request that pricing be increased once per year with an effective date of September 1. Any agreed price increase shall not exceed the lower of either three percent (3%) or the 12-month percentage change for annual data from the prior year using the Bureau of Labor Statistics Consumer Price Index (“CPI”), West Region, unadjusted data for Nonalcoholic Beverages and Beverage Materials. Contractor will submit price increase requests, in writing, to WOU’s Contract Administrator no later than July 1 for an effective date of September 1. For price increases to take effect, WOU must approve of Contractor’s requested price increase in writing and amend this Contract by the effective date. 4.5. Vending Sale Prices Contractor’s vending sale prices will be in alignment with WOU’s retail sale pricing. When vending sale pricing is out of alignment, Contractor will adjust vending sale prices in order to bring vending sale prices into alignment. Contractor will submit vending sale price increase requests, in writing, to WOU’s Contract Administrator no later than June 1 for an effective date of September 1. For vending sale price increases to take effect, WOU must approve of Contractor’s requested vending sale price increase in writing by July 1. Contractor will communicate the vending sale price increase to customers by displaying a notice on all vending machines a minimum of 60 days before the vending sale pricing increase will take effect. 4.6. FOB Destination All prices are FOB destination, including transportation costs, packaging, crates, containers, loading, unloading and any other requirements necessary to complete delivery on an FOB destination basis. 4.7. Additional Fees and Surcharges No additional fees or surcharges above the prices stated in Attachment A are allowed including but not limited to fuel surcharges, environmental fees, increased labor charges, or minimum order fees.
