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<br />proportionate to the total number of cable operators or competitive video service <br />providers (collectively "Providers"), unless other negotiated compensation has been <br />provided to the City, <br /> <br />The Company shall negotiate with other Providers in good faith, as necessary, to <br />determine who will provide video service to which school or public building. If <br />Providers are unable to reach agreement as to who will provide free video service to <br />which school, governmental, or library building, the Law Director will confer with the <br />Providers and determine the assignments in a reasonable manner. This obligation will <br />apply to a new Provider of video service once that Provider's video service is available <br />on the section of its system that passes the school or public building assigned to that <br />Provider. Until such time, the incumbent Provider of video service to that locatiòn will <br />provide video service to such school or public building. <br /> <br />SECTION 4 <br />COMPENSATION AND OTHER PAYMENTS <br /> <br />4.1 Revenue To City. During the term of this Agreement, the Company shall <br />pay to City a fee of five percent (5 %) of the gross revenues received by the Company or <br />any affiliate or parent entity from the provision of the IF Video Service product over the <br />Company's Facilities in the City ("Gross Revenues"). Gross Revenues includes <br />subscription fees received from the COIIJpa1J,y's IF Video Service subscribers within the <br />City (including, without' limitation, pay~per-view and video on demand fees) and a pro <br />rata portion of all revenue derived by the Company from advertising and home-shopping <br />sales associated with the IF Video Service provided over the Company's Facilities in the <br />n__CityLJ'h~allocJ!riQn or pro_cÍatiºn ºf adv~rtising and home-shopping revenue referred to <br />above shall be based on the number of subscribers-iri theCiiY diÝÎded bý the totar- <br />number of subscribers in relation to the relevant regional or national 'compensation <br />arrangement: The fee does not apply to taxes or other governmental fees, non-video <br />revenues, except as provided herein, or the non-video revenues of a buridled product that <br />contains both IP Video and non-video offerings. <br /> <br />4.2 Collection and Remittance to City. All amounts to be paid to the City under <br />Section 4.1 shall be collected monthly from subscribers, and the amounts collected shall <br />be remitted to the City on a quarterly basis, within thirty (30) days after the last day of <br />each calendar quarter, unless the parties otherwise agree. <br /> <br />4.3 Term of Pavment Obligation. The Company will remit 5% of its Gross <br />Revenues for as long as the Company provides IP Video Services in the City, subject to <br />any relevant changes in federal or state law and conditioned upon any incumbent cable <br />operator's continued obligation to remit an equivalent percentage of its gross revenues, <br />unless the parties otherwise agree. <br /> <br />477196-2 <br /> <br />9 <br />