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3. Operating Fees Not a Pass -Through Fee: Gross Receipts Defined <br />A. OPERATOR, as a cannabis manufacturing business, shall not pass the operating <br />agreement fees or any portion thereof through to the cannabis manufacturing business' <br />customer in any fashion except as part of the basic product sales and/or service price. <br />B. For the purposes of this AGREEMENT, "gross receipts" shall mean any and all of the <br />following with respect to OPERATOR's business transacted and carried -on at, from, or <br />in direct connection with, OPERATOR's City of Santa Ana permitted and licensed <br />business location or branch facility, hereinabove referenced as "subject property <br />location": <br />• Transfer of title or possession, exchange or barter, conditional or otherwise, in any <br />manner or by any means whatsoever, of tangible and/or intangible personal property <br />for consideration, including any monetary consideration for cannabis manufacturing <br />business services and/or related goods or services; <br />• Anything else of value obtained by a cannabis manufacturing business; <br />• The total amount of the sale price of all sales and services; <br />• The total amount charged or received for the performance of any act, service or <br />employment of whatever nature it may be, whether or not such service, act or <br />employment is done as a part of or in connection with the sale of goods, wares, <br />merchandise, for which a charge is made or credit allowed, including all refunds, <br />cash credits and properties of any amount or nature; <br />• Any amount for which credit is allowed by the seller to the purchaser without any <br />deduction therefrom, on account of the cost of the property sold, the cost of materials <br />used, the labor or service cost, interest paid or payable, losses, or any other expense <br />whatsoever; provided that cash discounts allowed or payment on sales shall not be <br />included; <br />C. "Gross receipts" shall not include the following: <br />• The amount of federal transaction taxes (sales, use, excise, value added) imposed <br />on or with respect to sales made or services provided whether or not the amount of <br />such taxes is stated as a separate charge; The amount of any California state excise <br />tax or state cultivation tax regardless of whether or not the amount of such excise tax <br />or cultivation tax is stated to customers as a separate charge, or any California state, <br />city or city and county sales or use tax (including any city or city and county <br />transaction and use tax) required by law to be included in or added to the purchase <br />price and collected from the consumer or purchaser, or such part of the sales price of <br />any property previously sold and returned by the purchaser to the seller which is <br />refunded by the seller by way of cash or credit allowances given or taken as part <br />payment on any property so accepted for resale; or <br />D. "Gross receipts" shall be calculated without any deduction on account of any of the <br />following: <br />4 The cost of tangible or intangible property sold or bartered; <br />