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3. FEES Operator agrees to pay the City and City agrees to accept from Operator the following fees per event. Parkh___ mva1 m..w Centennial Park $6,500 I" Carnival (Cinco De Mayo) Centennial Park $10,000 or 15% of the ride gross 2"d Carnival (4`h of July) whichever is greater Jerome Park $6,000 or 15% of the ride gross I" Carnival whichever is greater JeromePark $6,000 or 15% of the ride gross 2"a Carnival whichever is greater As a condition precedent to being granted a license to operate a carnival, the Operator agrees to pay in advance all City permit and/or license fees for the events as well as any deposits. 3. TERM This Agreement shall commence on the date first written above and terminate on /lJCtnA /7 , 2004 unless terminated earlier in accordance with Section 12, below. The term of this Agreement may be extended upon in writing executed by the Executive Director of the Parks Recreations and Community Services Agency and the City Attorney. 4. RECORD KEEPING AND AUDIT A. Operator shall establish and maintain separate accounting records specified for the carnival activity at the specified parks. Operator's accounting system shall conform to generally accepted accounting principles and all records shall provide a breakdown of total costs and revenues associated with the park carnival events. B. ALL Operator's records of revenues and repairs pertaining to Santa Ana Carnivals shall be kept for the duration of this Agreement and made available at all times for audit by City upon request 5. INDEPENDENT CONTRACTOR Operator shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Operator performs the services which are the subject matter of this Agreement; however, the services to be provided by Operator shall be provided in a manner consistent with all applicable standards and regulations governing such services. Operator shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes.