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conditions, strikes, labor disturbances, lockouts, war or act of war(whether an actual declaration <br /> of war is made or not), insurrection, riots, act of public enemy, actions or inactions of any <br /> government instrumentality or public utility including condemnation, accidents for which the <br /> Franchisee is not primarily responsible, fire, flood, or other acts of God, or work delays caused <br /> by waiting for utility providers to service or monitor utility poles to which Franchisee's FTTP <br /> Network is attached, and unavailability of materials and/or qualified labor to perform the work <br /> necessary. <br /> 1.13 Franchise Area: The incorporated area(entire existing territorial limits) of the <br /> City and such additional areas as may be included in the corporate(territorial) limits of the City <br /> during the term of this Franchise. <br /> 1.14 Franchisee: Verizon Northwest Inc., and its lawful and permitted successors, <br /> assigns and transferees. <br /> 1.15 Government Access Channel: An Access Channel available for the use of the <br /> City. <br /> 1.16 Gross Revenue: All revenue, including any and all cash, credits, property, or <br /> consideration of any kind, as determined in accordance with generally accepted accounting <br /> principles, which is earned or derived by Franchisee and/or its Affiliates, received from <br /> Franchisee's provision of Cable Service over the Cable System in the Franchise Area. Gross <br /> Revenue shall be reported to the City using the"accrual method" of accounting. Gross Revenue <br /> shall include the following items so long as all other cable providers in the Service Area include <br /> the same in Gross Revenues for purposes of calculating franchise fees: <br /> (a) fees charged for Basic Service; <br /> (b) fees charged to Subscribers for any service tier other than Basic Service; <br /> (c) fees charged for premium Channel(s), e.g. HBO, Cinemax, or Showtime; <br /> (d) fees charged to Subscribers for any optional, per-channel, or per-program <br /> services; <br /> (e) charges for installation, additional outlets, relocation, disconnection, <br /> reconnection, and change-in-service fees for video or audio programming; <br /> (f) fees for downgrading any level of Cable Service programming; <br /> (g) fees for service calls; <br /> (h) fees for leasing of Channels; <br /> (i) rental of customer equipment, including converters (e.g. set top boxes, <br /> high definition converters, and digital video recorders) and remote control <br /> devices; <br /> (j) advertising revenue as set forth herein; <br /> (k) revenue from the sale or lease of access Channel(s) or Channel capacity; <br /> (1) revenue from the sale or rental of Subscriber lists; <br /> (m) revenues or commissions received from the carriage of home shopping <br /> channels; <br /> (n) fees for any and all music services that are deemed to be a Cable Service <br /> over a Cable System; <br /> (o) revenue from the sale of program guides; <br /> EVERETT 4 <br /> Seattle-3388207.8 0010932-00119 <br />