§ 38-24. Payment to the town.

(a)

Franchise fee.

(1)

For the use of the streets, and other facilities of the incorporated area of the town for the operation of the cable communications system and for the supervision thereof by the town, Century shall pay to the town five percent of Century's gross revenues from the operations of the cable communications system in the incorporated area of the town during the previous year. Century and the town agree to negotiate in good faith in the event federal law permits a greater franchise fee.

(2)

Gross revenues. The term "gross revenues" means all cash, credits, property of any kind or nature, or other consideration received directly by Century, from or attributable to the sale or exchange of cable service by Century within the town or in any way received by Century from the operations of its cable system within the town, including, but not limited to, all cable, pay television and pay-per-view fees net of that share of fees which is remitted to suppliers of those services, without any deduction whatsoever. Gross revenues shall not include converter deposits, refunds to subscribers by Century, uncollectible accounts, or receipts from sales or use taxes or any other tax that Century collects on behalf of any taxing authority or monies paid to a grantee which Century is required to pay to a third party in full for promotional activities.

(3)

The annual sum shall be payable one-half thereof at the end of each semi-annual period (six months). The semi-annual anniversary shall be the last day of the sixth-month anniversary and the last day of the 12-month anniversary of the effective date of this agreement each year during the term (as hereinafter defined), and each semi-annual payment shall be paid within 60 days thereafter.

(b)

Statements. Century shall, with the payment set forth above, provide a statement of gross revenues and payments to the town.

(c)

Audit. The town shall have the right to inspect Century's income records directly related to gross revenues and the right to audit and to recompute any amounts determined to be payable under this section; provided, however, that such audit shall take place within 12 months following the close of each of Century's fiscal years. Any additional amount due to the town as a result of the audit shall be paid within the 30 days following written notice to Century by the town, which notice shall include a copy of the audit report.

(d)

Payments. Payments of compensation made by century to the town pursuant to the provisions of this section shall not be considered in the nature of a tax but shall be in addition to any and all taxes which are now or hereafter required to be paid by any law of the United States, the state, the County of Washington or the town.

(Prior Code, § 9-1-6)