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EXHIBIT B - COMPENSATION TO CONTRACTOR <br />In consideration of the Services, CONTRACTOR shall be entitled to the following compensation: <br />A. Basic Fees. <br />CITY shall pay to CONTRACTOR the following fees for all animal licenses issued during the term of this <br />Agreement, regardless of whether they are issued by CITY, CONTRACTOR, veterinarians, or any other persons: <br />1) $4.30 for each one-year license or replacement tag and for the first year for each multi -year <br />license (which amount is subject to adjustment as provided below). <br />2) $2.00 for each additional year after the first year for each multi -year license. <br />3) $2.50 collection service fee for each late fee, if any, paid by a Licensee during the term of this <br />Agreement. <br />The fee provided for in clause 1), above, will be adjusted as follows during any of the following periods that fall <br />within the tern of this Agreement: (a) commencing on the third (3rd) annual anniversary of the Execution Date <br />and continuing until the fifth (5th) annual anniversary of the Execution Date, the fee provided for in clause 1), <br />above, will be $4.40; and (b) if the term of this Agreement is for more than five (5) years, then, commencing on <br />the fifth (5th) annual anniversary of the Execution Date and continuing on each annual anniversary of the <br />Execution Date thereafter throughout the remaining term of this Agreement, the fee provided for in clause 1), as <br />previously adjusted, will increase by an amount equal to five percent (5%) of the fee under clause 1) that is in <br />effect immediately prior to the respective anniversary, and the fee, as so increased, will thereupon become the <br />fee payable under clause 1) unless and until further adjusted in accordance with this clause (b). <br />An animal license will be considered "issued" for purposes of this Agreement regardless of the means, method, <br />program, process, or agency used for the issuance or registration of the license, and whether or not a fee or other <br />consideration is charged or received by the CITY for the license. Without limiting the generality of the foregoing, <br />an animal license that is donated or issued free of charge by the CITY or that is issued as part of a bundling of <br />CITY services or programs will be considered "issued" for purposes of this Agreement. Further, any animal <br />license that is processed by CONTRACTOR for CITY during the tern of this Agreement will be considered <br />"issued" for purposes of this Agreement, whether or not the license was or is actually issued or delivered before, <br />during, or after the term of this Agreement. <br />Notwithstanding the preceding provisions of this Section 6A, the parties agree that CONTRACTOR's <br />minimum aggregate fees under this Section A are $6,000.00 per calendar year. In order to assure the <br />payment of such minimum aggregate annual fees to CONTRACTOR, the parties agree that if the <br />aggregate fees payable to CONTRACTOR under this Section A for a calendar month would, but for the <br />application of this sentence, be less than $500.00, then the aggregate fees payable to CONTRACTOR under <br />this Section A for that calendar month will be $500.00. However, the foregoing minimum monthly amount <br />will not be applicable if the aggregate fees paid to CONTRACTOR under this Section A have already <br />equaled or exceeded, or in the opinion of CONTRACTOR are reasonably expected to otherwise equal or <br />exceed, $6,000.00 for that calendar year. If the aggregate annual fees paid to CONTRACTOR under this <br />Section A during any calendar year do not equal or exceed $6,000.00, then CITY shall pay an amount <br />equal to the positive difference between (i) the amount previously paid to CONTRACTOR for that calendar <br />year and (ii) $6,000.00, upon demand by CONTRACTOR. The $6,000.00 minimum annual amount shall be <br />prorated for any partial calendar year during the term of this Agreement. No delay or failure on the part of <br />CONTRACTOR in imposing or collecting the aforesaid monthly minimum amount shall affect <br />CONTRACTOR's right to receive the aforesaid minimum aggregate annual fees or to collect the aforesaid <br />minimum aggregate monthly amount either then or in the future. CITY acknowledges that the aforesaid <br />minimum fee amounts apply only to the fees payable to CONTRACTOR under this Section <br />