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Section 4. Area/Location. The franchise granted hereunder is for such areas and <br />locations within the City as shall from time to time be approved by the Public Works <br />Directorpursuant to Section 1207.13. The initial locations requestedby the franchisee <br />are outlined in Exhibit A. <br />Section 5. Design. The City hereby approves the design of the transit shelters as more <br />fully delineated in Exhibit A, attached hereto and incorporated herein by reference; <br />provided that changes to such design shall be submittedto and approvedby the Public <br />Works Director pursuant to Section 1207.10. <br />Section 6. Fee for Franchise. During the initial term hereof, the franchisee shall pay to <br />the City a fee equal to eight percent (8%) of annual gross revenue, as definedin Section <br />1207.15. In consideration of the award of the franchise by the City, the franchisee shall <br />pay to the City a fee as defined in Section 1207.15. Franchisee fee shall be based upon <br />the annual gross revenue derived from advertising in its shelters located within the City in <br />accordance with the following schedule: <br />(1) If annual gross revenues are less than one hundred thousand dollars <br />($100,000.00): Eight (8) percent. <br />(2) If annual gross revenues are one hundred thousand dollars {$100,000.00) but less <br />than one hundred twenty five thousand dollars ($125,000.00): Nine (9) percent. <br />(3) If annual gross revenues are more than one hundred twenty five thousand dollars <br />($125,000.00): Ten {10) percent. <br />Section 7. Construction of Facilities. Subject to unavoidable delays, Franchisee shall <br />construct the facilities described in Section 4 and 5 hereof within 180 days of the <br />effective date of the grant of the franchise, or the franchise granted hereunder shall be <br />void. For purposes of this Section 7, "unavoidable delays" means unexpected delays <br />which are the direct result of: (a) adverse weather conditions, (b) shortages of materials, <br />(c) strikes, other labor troubles, (d) fire or other casualty, (e) litigation commenced by <br />third parties which, by injunction or other judicial action, directly results in delays, {� <br />acts of any federal or state governmental unit, including legislative and administrative <br />acts, (g) approved changes to design that result in delays, (h) delays caused by utility <br />companies and (i) any other cause or force maj eure beyond the control of the Franchisee <br />that directly results in delays, provided, however, that adverse market conditions <br />affecting the marketability or profitability of the franchise or an inability to secure <br />financing shall not constitute unavoidable delays. <br />