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PAGE 3 <br />8.Cancellation/Rescheduling by Sponsor. If the Display is cancelled by the Sponsor after receipt of this <br />signed Agreement, Sponsor agrees to pay 25% of the total price ($18,750.00) for restocking and costs <br />incurred. If the Display is cancelled by the Sponsor within 30 days of the scheduled Display date, Sponsor <br />agrees to pay 50% of the total price ($37,500.00). If the Display is cancelled by the Sponsor on the date <br />of the Display, Sponsor agrees to pay 100% of the total price ($75,000.00). By providing notice of not <br />less than 30 days from the original Display date, Sponsor may elect to reschedule the Display to a mutually <br />agreeable date. This date must occur before January 2, 2026. Western agrees to facilitate this <br />rescheduling and Sponsor agrees to reimburse Western for new permits and other additional costs <br />associated with this change. Sponsor understands that permitting requirements, burn bans and other <br />factors beyond Western’s control may prohibit rescheduling of a display. If these factors prohibit the <br />rescheduled Display from taking place then the standard cancellation schedule applies. In the event of <br />system failure to launch the Display, Western agrees to reimburse the Sponsor 100% of any <br />deposits/payments made. <br />9.Safety / Weather Forced Cancellation. Western agrees that it shall be the responsibility of the <br />pyrotechnic operator in charge, acting on Western's behalf or the Authority Having Jurisdiction, to cancel <br />or delay the Display if in the operator's judgment circumstances beyond the control of either Party pose <br />an extraordinary risk to the health and safety of any persons or property within the vicinity of the Display. <br />In this situation, the Display will be rescheduled to a mutually agreeable date. <br />If the product has been damaged as an attempt to execute the Display and cannot be safely reused, 100% <br />of the price is due and Western has no further obligation under this Agreement. If the product is intact <br />and reusable, Western agrees to store the product and execute the Display on a mutually agreeable <br />future date. Sponsor agrees to reimburse Western for reasonable costs associated with the rescheduling <br />of the event. <br />10.Force Majeure. Sponsor assumes the risks of weather, strike, civil unrest, terrorism, military action, <br />governmental action, and any other causes beyond the control of Western which may prevent the Display <br />from being safely performed on the scheduled date, which may cause the cancellation of the event for <br />which Sponsor has purchased the Display, or which may affect or damage such portion of the Display as <br />must be replaced and exposed a necessary time before the Display. In this situation, the Display will be <br />rescheduled to a mutually agreeable date. <br />11.Product Performance. Sponsor recognizes and acknowledges that due to the nature of fireworks, an <br />industry accepted level of 3% of the product used in any display may not function as designed and this <br />level of nonperformance is acceptable as full performance. <br />12.Time. Time is of the essence in this agreement. The Parties expressly recognize that in the performance <br />of their respective obligations, each Party is relying on timely performance by the other Party and will <br />schedule operations and incur obligations to third parties in reliance upon timely performances by the <br />other Party and may sustain substantial losses by reason of any failure of timely performance. <br />13.Independent Contractor/No Joint Venture. The Parties agree that Western is an independent <br />contractor, and is not an agent or employee of Sponsor for any purpose. It is further agreed that <br />Western's employees shall be, and remain, the employees of Western and not of Sponsor. Nothing in this