How must weekly payments be made to Aw?

Gross Revenue will not include any receipts from sales, use, or service taxes collected from customers and paid to the appropriate taxing authority, promotional customer discounts and coupons, authorized employee discounts and complimentary products for promotional or charitable purposes.

• 10.5 Electronic Funds Transfer. You must make the weekly payments for the royalty fee, Marketing Fund contributions and any and all other fees that may become due and payable to us hereunder by either electronic transfer or electronic debiting of your business account, or in any other manner that we may hereinafter designate. You must execute such authorization forms as are necessary for electronic transfer or debiting as soon as you have established a bank account for your Papa Ray's Pizza Restaurant and shall execute any other documents as may be required from time to time by us to permit us to electronically transfer funds or debit your account for the purpose

of making the required payments. You may not make any change in your banking relationships, including any change in the account number of your business account, or any change in banks, without our prior written approval and your execution of new authorization forms.

On Tuesday of each week, you must submit to us in the form and manner we specify a statement of Gross Revenue for the previous Monday through Sunday. Payments of the royalty fee and Marketing Fund contributions will be transferred by Noon on Wednesday of each week for the previous Monday through Sunday. The amount of the royalty and Marketing Fund contribution transferred will be based on the Gross Revenue reported by you. You agree to make the funds available for withdrawal by electronic transfer or debiting before each Wednesday at Noon. If you fail to submit a report of the Gross Revenue of your Papa Ray's Pizza Restaurant, we may transfer or debit from your account an amount which is one hundred twenty percent (120%) of the last amount we transferred for payment of the royalty and Marketing Fund contribution. If the amount of the royalty and Marketing Fund contribution we transferred is less than the amount that you actually owe to us (once we have determined the true and correct amount of Gross Revenue), we will transfer from your account the balance of the royalty and Marketing Fund contribution due or we will credit the excess against the next transfer for royalty and Marketing Fund contribution due, as applicable.

• 10.6 Interest on Late Payments. To encourage prompt payment of all amounts due to us and to cover the costs and expenses involved in handling and processing late payments, you will pay a late payment charge equal to the greater of (i) One Hundred Fifty Dollars ($150.00) or (ii) one and one-half percent (1 ½%) per month on all payments due to us during the period of time said payments are due and unpaid, but no more than the highest interest rate permitted by law. (You acknowledge that the inclusion of this Paragraph in this Agreement does not mean we agree to accept or condone late payments, nor does it indicate that we have any intention to extend credit to, or otherwise finance your operation of the Papa Ray's Pizza Restaurant.) We shall have the right to transfer from your bank account designated for making payments to us in the amount of any interest due and owing under this Paragraph. In addition, you will pay us any and all service charges we incur for each rejected electronic transfer or if you submit to us a check that is not honored and/or returned for insufficient funds.
• 10.7 Application of Payments. When we receive a payment from you, we have the right in our sole discretion to apply it as we see fit to any past due indebtedness of yours due to us or our affiliates, whether for royalties, Marketing Fund contributions, purchases, interest, or for any other reason, regardless of how you may designate a particular payment to be applied.

**11.

Source: Item 22 — CONTRACTS (FDD pages 39–40)