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in. "Gross Revenues" shall be defined as and shall be construed broadly to include all <br /> revenues derived directly or indirectly by Grantee and/or an Affiliate that is a <br /> cable operator of the Cable System, from the operation of Grantee's Cable System <br /> to provide Cable Services within the City(including cash, credits, property or <br /> other consideration of any kind or nature). Gross revenues include, by way of <br /> illustration and not limitation: monthly fees for Cable Services, regardless of <br /> whether such Cable Services are provided to residential or commercial customers, <br /> including revenues derived from the provision of all Cable Services (including but <br /> not limited to pay or premium Cable Services, digital Cable Services, pay-per- <br /> view, pay-per-event and video-on-demand Cable Services); installation, <br /> reconnection, downgrade, upgrade or similar charges associated with changes in <br /> subscriber Cable Service levels; fees paid to Grantee for channels designated for <br /> commercial/leased access use; converter, remote control, lockout device and other <br /> Cable Service equipment rentals and/or leases or sales; advertising revenues <br /> received or derived by Grantee and/or its Affiliates, including but not limited to, <br /> rep fees, Affiliate fees, rebates and commissions, but excluding unaffiliated <br /> agency fees; late fees, convenience fees and administrative fees; revenues from <br /> program guides; franchise fees; and commissions from home shopping channels <br /> and other revenue sharing arrangements. Gross Revenues subject to franchise <br /> fees shall include revenues derived from sales of advertising that run on Grantee's <br /> Cable System within the City and shall be allocated on a pro rata basis using total <br /> Cable Service subscribers reached by the advertising. Additionally, Grantee <br /> agrees that Gross Revenues subject to franchise fees shall include all commissions <br /> paid to third parties associated with sales of advertising on the Cable System <br /> within the City allocated according to this paragraph using total Cable Service <br /> subscribers reached by the advertising. Gross revenues shall not include: actual <br /> bad debt write-offs,provided, however, that all or part of any such actual bad debt <br /> that is written off but subsequently collected shall be included in Gross Revenues <br /> in the period collected; and any taxes on services furnished by Grantee imposed <br /> by any municipality, state or other governmental unit, provided that franchise fees <br /> shall not be regarded as such a tax. <br /> (i) To the extent revenues are received by Grantee for the provision of a <br /> discounted bundle of services which includes Cable Services and non- <br /> Cable Services, Grantee shall calculate revenues to be included in Gross <br /> Revenues using a methodology that allocates revenue on a pro rata basis <br /> when comparing the bundled service price and its components to the sum <br /> of the most recent published rate card rate for the components, except it is <br /> expressly understood that equipment may be subject to inclusion in the <br /> bundled price at full rate card value. This calculation shall be applied to <br /> every bundled service package containing Cable Service from which <br /> Grantee receives or derives revenues in the City, and must be updated <br /> within sixty(60) days of the date any rate change for cable and/or non- <br /> cable services is implemented for a service package containing Cable <br /> Service or the date any rate change is implemented for any service <br /> 3 <br />