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Amended and Restated Banquet and Concessions Management Agreement

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Amended and Restated Banquet and Concessions Management Agreement DocuSign Envelope ID: 4B34C561-C0C6-470E-985F-6CD740146C82 AMENDED AND RESTATED BANQUET AND CONCESSIONS MANAGEMENT AGREEMENT for McCORMICK PLACE CONVENTION CENTER, CHICAGO, ILLINOIS between the METROPOLITAN PIER AND EXPOSITION AUTHORITY and SMG FOOD AND BEVERAGE, LLC d/b/a SAVOR DATED: December 29, 2017 DocuSign Envelope ID: 4B34C561-C0C6-470E-985F-6CD740146C82 TABLE OF CONTENTS [UPDATE] ARTICLE I - INCORPORATION OF RECITALS, DEFINITIONS AND INTERPRETATION............................................................................................................2 1.1 Incorporation of Recitals..........................................................................................2 1.2 Exhibits. ...................................................................................................................2 1.3 Definitions................................................................................................................2 1.4 Interpretation. .........................................................................................................10 1.5 Conflicting Provisions. ..........................................................................................10 ARTICLE II - ENGAGEMENT OF MANAGER; SCOPE OF SERVICES; RIGHTS AND RESPONSIBILITIES ........................................................................................................11 2.1 Engagement............................................................................................................11 ARTICLE III - Use of the Food Service Areas; Certain Restrictions on Use ...............................12 3.1 Use of the Food Service Areas...............................................................................12 3.2 Grant of Right to Use Certain Office Space, Equipment and other Facilities at McCormick Place. ..............................................................................................13 3.3 Right to Use Certain McCormick Place Parking Spaces. ......................................14 ARTICLE IV - TERM, REVIEWS AND OPERATING HOURS ...............................................14 4.1 Term and Term Extensions. ...................................................................................14 4.2 Commencement of Services. .................................................................................14 4.3 Review of Performance..........................................................................................14 4.4 Review of Economic Performance. .......................................................................15 4.5 Hours of Operation. ...............................................................................................15 ARTICLE V - CERTAIN LICENSES ..........................................................................................15 5.1 Licenses for the Performance of Food and Beverage Services. .............................15 ARTICLE VI - PERFORMANCE BOND REQUIREMENTS ....................................................16 6.1 Performance Bond. ................................................................................................16 ARTICLE VII - FINANCIAL ARRANGEMENTS .....................................................................17 7.1 Fees. .......................................................................................................................17 7.2 Qualifications to Receive Incentive Fee Payments ................................................18 7.3 Miscellaneous Revenue and Fees ..........................................................................19 7.4 Food Service Operating and Revenue Accounts ...................................................21 7.5 Operating Funding, ................................................................................................21 7.6 Financial Management Services ............................................................................22 7.7 Reserve Fund. ........................................................................................................22 7.8 Manager Payments .................................................................................................23 ARTICLE VIII - RECORDKEEPING AND ACCOUNTING .....................................................24 8.1 Books and Records. ...............................................................................................24 8.2 Reporting Requirements. .......................................................................................25 i DocuSign Envelope ID: 4B34C561-C0C6-470E-985F-6CD740146C82 8.3 Audits. ....................................................................................................................27 ARTICLE IX - STANDARDS OF PERFORMANCE .................................................................28 9.1 Representation as to Performance. .........................................................................28 9.2 Food Service to the Public. ....................................................................................28 9.3 Food Service to the Authority. ...............................................................................29 9.4 Cash Handling and Security...................................................................................29 9.5 Maximization of Business......................................................................................29 9.6 Performance of the Services. .................................................................................30 ARTICLE X - PRICING ...............................................................................................................32 10.1 Pricing in General. .................................................................................................32 10.2 Value Pricing. ........................................................................................................32 10.3 Pricing Related to Authority Sponsored Events. ...................................................32 10.4 Conducting of Surveys. ..........................................................................................33 ARTICLE XI - MANAGEMENT, OTHER KEY PERSONNEL AND STAFFING REQUIREMENTS .............................................................................................................33 11.1 Manager’s General Manager and Other Key Personnel. .......................................33 11.2 Staffing. ..................................................................................................................34 11.3 Employee Salaries. .................................................................................................35 11.4 Management Responsibilities. ...............................................................................35 11.5 Meetings. ................................................................................................................35 ARTICLE XII - MANAGER PROMOTIONS..............................................................................35 12.1 Examination and Approval. ...................................................................................35 12.2 Permitted Signage. .................................................................................................36 12.3 Advertising and Marketing. ...................................................................................36 12.4 Surveys and Research. ...........................................................................................37 12.5 Banquet and Concession Web Site. .......................................................................37 ARTICLE XIII - SUBCONTRACTORS ......................................................................................37 13.1 Subcontractors........................................................................................................37 13.2 Subcontractor / Subcontractor Certifications. ........................................................37 ARTICLE XIV - REPRESENTATIONS AND WARRANTIES OF THE PARTIES .................38 14.1 Manager’s Representations and Warranties. ..........................................................38 14.2 Representations and Warranties of the Authority. .................................................40 ARTICLE XV - - CERTAIN COVENANTS AND OTHER OBLIGATIONS ............................41 15.1 Negative Covenants of Manager. ...........................................................................41 15.2 Certain Rights and Obligations of the Authority. ..................................................42 ARTICLE XVI - INDEMNITY, FORCE MAJEURE AND INSURANCE .................................45 16.1 Indemnification by Manager. .................................................................................45 16.2 Force Majeure. .......................................................................................................46 16.3 Insurance. ...............................................................................................................47 ii DocuSign Envelope ID: 4B34C561-C0C6-470E-985F-6CD740146C82 ARTICLE XVII - DEFAULT, REMEDIES, TERMINATION, LIQUIDATED DAMAGES ........................................................................................................................49 17.1 Manager Event of Default. The following events shall constitute an “Event of Default” by Manager under this Agreement: ....................................................49 17.2 Remedies of the Authority Upon Default by Manager. .........................................51 17.3 Authority Event of Default.
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