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Alternative Parking Payment Model Subject to the final quantities and total cost, IPS can provide the City with an alternative payment option which is based on the increased revenue generated by converting coin meters to IPS credit card meters, The City may pay more up front to reduce the total monthly payments. IPS will provide a complete amortization schedule in final agreement. Formula for Alternative Payment Model: ALL PARKING REVENUES (Cash and card) - (less) MONTHLY IPS FEES - BASELINE REVENUE _ MONEY REMAINING to pay for IPS HARDWARE PAYMENT. Definitions: • Cash: IPS data management system will be used to quantify the monthly cash generated by the meter system. • Card: Revenues which are generated using credit / debit card at IPS meters. CPS will hold the merchant account and reconcile each month with the City, no later than 10 business days following the end of each calendar month. • MONTHLY IPS FEES: as defined in IPS Pricing, all monthly IPS service, credit card gateway fees are paid first out of the parking money generated by both cash and card. • MONTHLY IPS HARDWARE PAYMENT: Monies paid towards the IPS meter hardware on a schedule defined by IPS. The MONEY REMAINING will be used to first pay for the CPS MONTHLY HARDWARE PAYMENT. If there is not enough MONEY REMAINING in each calendar month to pay for the full MONTHLY IPS HARDWARE PAYMENT, then IFS would receive 100% of what is available, and the remaining payment balance for MONTHLY IPS HARDWARE PAYMENT would be deferred and would accumulate until paid in full during future periods. BASELINE REVENUE: Shall be the average monthly revenue generated by the parking meter system for the areas to be upgraded over the last 12 months, This amount is defined by this Agreement as [To be Determined]. Key terms and conditions of the Alternative Pricing Proposal: • The IPS MONTHLY IPS FEES AND CC FEES shall continue for so long as the meters are installed and are necessary for the ongoing operation of the meters. • IPS Group retains complete ownership and title to all equipment until the IPS HARDWARE PAYMENT is paid in full. • Number of metered spaces and number of paid parking days cannot decrease by more than 5% during the term, unless there are exceptional situations, for example construction, which will be discussed with IPS in advance. • Parking meter rates cannot decrease below current rates. Page 8 of 9