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services from persons other than CONTRACTOR during such periods, including CONTRACTOR's Bin and/or Roll-Off Service Customers. (g). CONTRACTOR shall not have the exclusive right to collect and dispose of Solid Waste by providing Bin and/or Roll-Off Service if the conditions stated in Section 28( c) are applicable. (h) In exchange for the exclusive rights guaranteed above, CONTRACTOR shall provide to the City a one million ($1,000,000.00) payment on July 1,2005 with an additional five hundred thousand ($500,000.00) per year to be paid monthly beginning July 1, 2006 and continuing each year until expiration of this Agreement. The initial $1,000,000 payment will be made by CONTRACTOR upon execution of this Agreement or on January 1, 2006, whichever occurs later. The additional $500,000 annual payment will be deducted monthly beginning July 1, 2006 on a pro rata basis from the curbside service payments. However, neither payment will affect the rates that customers are currently paying. 10. SOLID WASTE PROGRAM SURCHARGE: (a) CONTRACTOR shall pay to the CITY a Solid Waste program surcharge based upon the Gross Receipts received by CONTRACTOR. This surcharge is now set at an amount equal to 12.8 percent of said Gross Receipts. This amount may be increased by resolution of the City Council and, whenever said surcharge is increased by resolution of the City Council, CONTRACTOR shall be permitted to pass through to both its Bin Service and Roll-Off Service Customers one hundred (100%) percent ofthe amount of such increase. (b) Invoices submitted to Customers by CONTRACTOR shall not reference the aforementioned surcharge. Payments to the CITY of said Solid Waste surcharges shall be made to the CITY on a monthly basis and shall be due and payable on or before the last calendar day of the following month. Accompanying each payment will be a listing of the Gross Receipts for that corresponding month. CONTRACTOR shall, whenever requested to do so, make available such records to the Executive Director at any reasonable time. (c) Failure of CONTRACTOR to make any of the payments provided for in section (a) above on or before the dates due will result in a penalty of ten (10%) percent per month to CONTRACTOR. 11. AUTOMATED SYSTEM (a) LICENSE: The CITY grants to the CONTRACTOR an exclusive license to use the Solid Waste collection and Recycling vehicles and Solid Waste collection and Recycling carts listed on Exhibit "A", attached hereto and incorporated herein by this reference (hereinafter referred to collectively as "the Licensed Equipment"), for a period of time coterminous with the term of this Agreement. This license to use the Licensed Equipment shall not be deemed an equipment lease but, rather, a personal property license to use the Licensed Equipment pursuant to the specific terms, covenants, obligations and provisions of this Agreement. CONTRACTOR may not use the Licensed Equipment for any other purposes or business. This license is personal to the CONTRACTOR and shall not be assigned. It is the intent of the parties hereto that the Licensed Equipment shall be sufficient to permit CONTRACTOR to adequately perform its performance obligations under this 9 25A-17