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C. <br />0 <br />E <br />of time after receiving notice, Client fails to make necessary repairs or replacement to <br />essential equipment that becomes inoperative, hazardous or inefficient to operate or <br />interferes with Summit' ability to provide Services in a safe and sanitary manner. <br />Summit shall be entitled to assert a security interest in any equipment that it <br />purchases or repairs under this section and shall retain title to equipment purchased <br />hereunder. Once the cost of the purchased equipment or equipment repair has been <br />recovered, Summit shall release the security interest and title for any such purchased <br />equipment to Client. A piece of equipment in the nature of what is commonly known <br />as a "vending machine" is to be included in this agreement in order to provide <br />commissary services to short term inmates. The products available from this piece of <br />equipment shall be agreed upon by KCCC and Summit. KCCC and Summit agree that <br />as to this piece of equipment, the parties shall share the cost by each paying 50% of <br />the initial cost thereof. After Summit has recovered its portion of those costs, title <br />thereto shall be in the KCCC. <br />Any change or addition requested by the Client to modify the commissary software <br />that is specific to this location shall be paid for by the Client. Any costs incurred by <br />Summit for travel for training for the Client specific modifications shall be paid for by <br />the Client. <br />The Client represents and warrants that it has and will maintain all required licenses <br />and permits, necessary to operate the Premises. The Client represents and warrants <br />that the Premises is in compliance and will remain in compliance with local, state, and <br />federal laws and regulations. The Client agrees to notify Summit immediately upon <br />receiving notice of loss of any such permit or license. <br />For the purpose of this Section 3, "Supervisory Employees" shall be defined as those <br />persons who have directly or indirectly performed management or professional <br />services on behalf of Summit on behalf of Client at any time during this Agreement. <br />Client acknowledges that Summit has invested considerable amounts of time and <br />money in training its Supervisory Employees, in the systems, procedures, methods, <br />forms, reports, formulas, computer programs, recipes, menus, plans, techniques and <br />other valuable information, all of which is proprietary and unique to Summit. <br />Therefore, the Client agrees that during the Supervisory Employee's employment with <br />Summit and for a period of twelve (12) months thereafter no Supervisory Employees <br />of Summit will be hired by Client nor any facility affiliated with Client, nor will Client <br />permit employment of Summit Supervisory Employees on Client's Premises or the <br />Premises of any facility affiliated with Client, whether as an individual or as owner, <br />partner, majority stockholder, director, officer or employee of a food/Commissary <br />service provider. Client agrees that if it violates this contract provision, Client shall <br />pay to Summit, and Summit shall accept as liquidated damages and not as a penalty, <br />an amount equal to the annual salary (including costs of all benefits) of the <br />Supervisory Employee(s) hired by or allowed to work with Client in violation of the <br />terms of this Agreement. Summit shall be entitled to pursue all other remedies <br />available under federal, state, or local law. <br />Page 3 of 11 <br />