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09/.15/00 FRI 1x:56 FAX 216 771 1070 CABLEVISION ADMIN. Cablevisi°n/Mayfiefd Village Franchise Agreement 2000 Page No. -)- (a) The definitions contained in the Codified ®rdinances are incorporated iterein as if fully set forth. (b) "Gross Revenues" means all amounts earned by the Grantee,. in whatever form and from all. sources, derived from tlxe provision of video programming services distributed by Grantee over Grantee's Cable System within the Village and converter equipment rentals and installation. (;roes Revenues shall include, without limitation, amounts received from Subscribers for all video programming services, including but not limited to premium service, pay-per-view service, basic service, expanded basic service, converter equipment rentals and installation, franchise fees and alt other revenues derived from the provision of video progratx-ming services, converter equipment rentals and installations. "Gross revenues" shall also include amounts earned during any period for the provision of Cable Service regardless of whether: (1) the amounts are characterized, separately identified or accounted for as being for goods, services, or fees to be paid for government agencies; and (2) the amounts are initially recorded by the Grantee or any affiliated entity. Notwithstanding the above and in accordance with generally accepted accounting practices, "Gross .Revenue" shall not include: (1) revenues of any affiliated entity to the extent that such revenues have also been reported as revenues by Grantee; (2) other governmental assessments including to but not limited to sales and/or use taxes collected by Grantee; (3) revenues from the sale of goods and merchandise to the extent that Grantee does not retain any of the revenue collected; (4) revenues from capital contributions paid by commercial entities to extend Cable System plant so as to serve such commercial location and revenues collected frown subscribers as capital contributions iiZ order to meet identified cable-related needs of the Village; (5) any amounts documented and written off as bad debt or refunds to Subscribers; and (6) any copyright fees. (c) "Economic and T'echnicQl Fes~sibiliry" means capable of being provided; (a) through technology which has been demonstrated in actual applications (not simply through tests or experlrttents) to operate in a workable manner; and (b) in a manner which has a reasonable likelihood of generating a commercially acceptable return on investment for the Cable System over the remaining term of the franchise. AItT'YCLE 2. GENERAL REQIUIItE1VIENTS Section X0. Governing Requirements. Grantee shall comply with alI lawful requirements of this ,agreement, the Codif cd Ordizxances and applicable State and federal -law. Section I I. Franchise Fee. As compensation for the benefits and privileges granted under this Franchise and in consideration of permission to use the Grantor's streets and rights-of--way, the Grantee shall pay to the Grantor an annual Franchise Fee of Three Percent (3%) of Grantee's annual Gross Revenues earned by Grantee throughout the term of this Franchise. If the Grantor desires to r~ooa M & M 1999 Yase 7 of 28