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EXHIBIT "A" <br />completed; provided, however, that Gross Revenues shall not include revenues attributable to any lien <br />sales. For purposes of this Agreement, the term "Gross Revenues" means all cash, credits, revenues, <br />property of any kind or nature or other consideration as determined according to generally accepted <br />accounting principles consistently applied, derived directly or indirectly by Franchisee, its affiliates, <br />subsidiaries, parents, and any other person or entity in which Franchisee has a financial interest or which <br />has a financial interest in Franchisee's tow truck business, arising from or attributable to the towing and <br />storage services provided. <br />(b) Franchise fee payments due to the City as specified in subsection (a) <br />above shall be computed monthly. For the purpose of the franchise fee payment computation, the <br />applicable accounting period shall be calendar month unless otherwise agreed to in writing by the City <br />and Franchisee. <br />(c) The monthly franchise fee payments shall be due and payable on or <br />before the 20th (twentieth day) of the month immediately following the month for which the franchise fee <br />is calculated. Each payment shall be accompanied by a brief report from Franchisee showing the basis for <br />the computation and a written statement, signed under penalty of perjury byFranchisee, which identifies <br />in detail the sources and amounts of Gross Revenues received by Franchisee during the month for which <br />payment is made. No acceptance of any payment shall be construed as an accord that the amount paid is <br />in fact the correct amount, nor shall such acceptance of payment be construed as a release of any claim <br />that the City may have for further or additional sums due the City by Franchisee. <br />(d) Any franchise fees which remain unpaid after the date specified in <br />subsection (c) above shall be delinquent, shall result in a penalty equal to 10% of the unpaid amount and <br />the unpaid amount shall thereafter accrue interest at 10% per year, compounded daily, until paid, <br />(e) Franchisee or Franchisee's designated representatives shall, upon five (5) <br />days' written notice from the City, make available to the City or City's designated representatives its <br />accounting records for confidential inspection and audit. If the results of the audit show a franchise fee <br />underpayment of greater than two (2) percen� Franchisee will pay all costs associated with the audit in <br />addition to any other amounts owed as shown by the audit. If the results of the audit show an <br />underpayment of greater than ten (10) percent, Franchisee will pay the cost of the audit plus fifty (50) <br />percent of the total error as a penalty in addition to any amount owed as shown by the audit. If the results <br />of the audit show an underpayment of less than two (2) percent or an overpayment, the City shall pay its <br />own costs associated with the audit. Any underpayment shall result in a penalty equal to 10% of the <br />underpayment and the amount of such underpayment shall accrue interest at the rate of 10% per annum, <br />compounded daily from the date the underpayment should have been paid pursuant to subsection (c) <br />above until the date the underpayment is paid. <br />(f) In the event the results of the audit are disputed, the City may, at its sole <br />discretion, elect to arbitrate the dispute. In the event the City elects to arbitrate, the City and Franchisee <br />shall each select an independent auditor at their own cost. The two auditors will agree upon the results of <br />the audit. If the two independent auditors cannot agree upon the results of the audit, a third auditor will <br />be selected by the two independent auditors to make a final determination. The determination of the third <br />independent auditor will be final. <br />(g) By accepting this franchise, Franchisee irrevocably waives the defenses <br />of any statute of limitation, laches, waiver or other equitable doctrine of similar import or effect in any <br />action brought by the City to recover any franchise fee, interest or penalties due under this Agreement. <br />(h) By accepting this franchise, Franchisee agrees that if it challenges the <br />right of the City to collect the franchise fee provided by this Agreement, any relief requested by <br />Franchisee and awarded to it by virtue of such challenge shall be prospective only from and after the date <br />Page 6 of 9 <br />