1. In consideration of grant of Franchise rights for exchange company business by KKI on the terms mentioned above and further detailed terms and conditions to be enunciated in the Franchise Agreement, the Franchisee shall pay to KKI a Royalty @ 10% on net profit by the Franchisee. The Royalty shall be computed monthly and shall be paid to KKI by the 10th day of each ensuing calendar month for which the royalty becomes payable. The first royalty payment shall however commence from the date of the commencement of the operations and end of the last day of that calendar month.

2. The Franchisee shall submit monthly royalty statements on Forms as may be prescribed by KKI with supporting documents, such as photocopies of the bills/receipts/memos issued by the Dealers and counter signed by the General Manager, monthly account statements of all receivables and payables, statement of gross volume of business transacted and such other documents and records as may be required by KKI. These shall be certified as true copies under the signatures of the chief Executive and the General Manager. KKI shall have the right to physically examine and verify the correctness of such statements, accounts and documents at its discretion.