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�, �rrd <br /> �vw+r' <br /> 3.2 Franchise Fee <br /> (a) The Grantee shall pay to the Grantor an annual Franchise <br /> Fee of five percent (5%) of Gross Annual Cable Service Revenues, received by <br /> the Grantee and derived from the operations of the Cable System in the City of <br /> Redwood City to provide Cable Service. <br /> (b) If Federal or State law permits the Grantee to provide non- <br /> video Telecommunications Services to Subscribers (such as telephone <br /> communications) through the facilities of the Cable System, and the Grantor has <br /> the regulatory authority to collect either a Franchise Fee or an in-lieu-ofi <br /> franchise-fee payment on such services, then the Grantee shall pay a fee for <br /> revenues derived by the Grantee from such services at the rate established in an <br /> Ordinance adopted by the Council and applied in a non-discriminatory manner to <br /> all providers of such services franchised by Grantor. <br /> (c) For the purposes of this Agreement, revenues collected as <br /> Franchise Fees shall be included in Gross Annual Cable Service Revenues. <br /> (d) For the purposes of this Agreement, revenues derived from <br /> the provision of Internet access services shall be included in Gross Annual Cable <br /> Service Revenues, so long as all other Cable Operators in the City are required <br /> to follow the same practice. <br /> (e) In the event that the Grantee shall, during the term of the <br /> Franchise, bundle, tie or combine Cable Services (which are subject to the <br /> Franchise Fee) with non-Cable Services (which are not subject to the Franchise <br /> Fee) and provide the bundled, tied or combined service at a discount from the <br /> sum of the rates for the individual services, then the discount shall be <br /> apportioned to the Cable Service in proportion to the ratio of the unbundled <br /> 10 <br /> sh/RWC/Council <br /> AGMT-382 <br /> FXS/fs <br /> 08/02/00 <br />