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(p) late payment fees; <br /> (q) forgone revenue that Franchisee chooses not to receive in exchange for <br /> trades, barters, services, or other items of value; <br /> (r) revenue from NSF check charges; <br /> (s) revenue received from programmers as payment for programming content <br /> cablecast on the Cable System; and <br /> (t) Franchise fees. <br /> Advertising commissions paid to independent third parties shall not be deducted from <br /> advertising revenue included in Gross Revenue. Advertising revenue is based upon the ratio of <br /> the number of Subscribers as of the last day of the period for which Gross Revenue is being <br /> calculated to the number of Franchisee's Subscribers within all areas covered by the particular <br /> advertising source as of the last day of such period, e.g., Franchisee sells two ads: Ad"A" is <br /> broadcast nationwide; Ad "B"is broadcast only within Washington. Franchisee has 100 <br /> Subscribers in the Franchise Area, 500 Subscribers in Washington, and 1,000 Subscribers <br /> nationwide. Gross Revenue as to the City from Ad"A" is 10% of Franchisee's revenue <br /> therefrom. Gross Revenue as to the City from Ad "B" is 20% of Franchisee's revenue <br /> therefrom. <br /> Gross Revenue shall not include: <br /> 1.16.1 Revenues received by any Affiliate or other Person from Franchisee in <br /> exchange for supplying goods or services used by Franchisee to provide Cable Service over the <br /> Cable System in the Franchise Area; <br /> 1.16.2 Bad debts written off by Franchisee in the normal course of its business, <br /> provided, however, that bad debt recoveries shall be included in Gross Revenue during the <br /> period collected; <br /> 1.16.3 Refunds, rebates, or discounts made to Subscribers or other third parties; <br /> 1.16.4 Any revenues classified, in whole or in part, as Non-Cable Services <br /> revenue under federal or state law including, without limitation, revenue received from: <br /> Telecommunications Services; Information Services, including without limitation Internet <br /> Access services; charges made to the public for commercial or cable television that is used for <br /> two-way communication; and any other revenues attributed to Non-Cable Services in accordance <br /> with applicable federal and state laws or regulations; <br /> 1.16.5 Any revenue of Franchisee or any Person that is received directly from <br /> the sale of merchandise through any Cable Service distributed over the Cable System, but Gross <br /> Revenue shall include that portion of such revenue that represents or can be attributed to a <br /> Subscriber fee or a payment for the use of the Cable System for the sale of such merchandise; <br /> 1.16.6 The sale of Cable Services on the Cable System for resale in which the <br /> purchaser is required to collect cable franchise fees from purchaser's customer; <br /> EVERETT 5 <br /> Seattle-3388207.8 0010932-00119 <br />