Seattle SMSA dba Verizon Wireless 12/26/2018

representative of Grantee,containing an accurate statement in summarized form, as well as in detail, of Grantee's Gross Revenues and the computation of the payment amount. Such reports shall detail all Gross Revenues of the Telecommunications System and shall be drafted in accordance with GAAP. 4.5. Annual Reports If Grantee makes any payments due hereunder based on its Gross Revenues during any given calendar year,then Grantee shall,within sixty(60)days after the end of such year,furnish to the City a statement stating the total amount of Gross Revenues for the year and all payments, deductions and computations for the period. On an annual basis,upon thirty(30)days prior written notice,the City shall have the right to conduct an independent audit of Grantee's records reasonably related to the administration or enforcement of this Franchise, in accordance with GAAP. If the audit shows that fee payments due hereunder have been underpaid by three percent(3%)or more,Grantee shall pay the total cost of the audit. 4.6. Late Payments In the event any payment due quarterly is not received within thirty (30) days from the end of the calendar quarter, Grantee shall pay interest on the amount due at the rate of one percent (1%) per month,compounded daily,calculated from the date the payment was originally due until the date the City receives the payment. 4.7. Tax Liability The fees shall be in addition to any and all taxes or other levies or assessments which are now or hereafter required to be paid by businesses in general by any law of the City,the State or the United States including, without limitation, sales, use and other taxes, business license fees or other payments. Payment of the fees under this Franchise shall not exempt Grantee from the payment of any other license fee, permit fee, tax or charge on the business, occupation, property or income of Grantee that may be lawfully imposed by the City. 4.8. Payment on Termination If this Franchise terminates for any reason, the Grantee shall file with the City within ninety (90) calendar days of the date of the termination, a financial statement showing the Gross Revenues received by the Grantee since the end of the previous fiscal year. The City reserves the right to satisfy any remaining financial obligations of the Grantee to the City by utilizing the funds available in the irrevocable letter of credit or performance bond provided by the Grantee. 5. ADMINISTRATION AND REGULATION A. The City shall be vested with the power and right to reasonably regulate the exercise of the privileges permitted by this Franchise in the public interest,or to delegate that power and right,or any part thereof,to the extent permitted under law to any agent in its sole discretion. Seattle SMSA Limited Partnership (Verizon Wireless) Small Cell Franchise 12 of 33