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SECTION 2 GENERAL REQUIREMENTS <br />2.1 Governing Requirements <br />Grantee shall comply with all lawful requirements of this Agreement, <br />Ordinance No. 1829 and applicable State and Federal law. <br />2.2 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 derived by <br />the Grantee from all operations of the Cable System in the City of Pleasanton to <br />provide Cable Services. The fee shall be payable quarterly, by no later than <br />sixty (60) days after the end of the calendar quarter for which payment is due. <br />(b) Revenues collected as Franchise Fees shall be included in <br />Gross Annual Cable Service Revenues. <br />(c) For the purposes of this Agreement, revenues generated <br />from the provision of cable modem Internet access services shall be included in <br />Gross Annual Cable Service Revenues. <br />(d) For the purposes of this Agreement, revenues collected from <br />Subscribers for the Educational and Governmental Access capital grants of <br />Exhibit "B," Section 5, shall be included in Gross Annual Cable Service <br />Revenues. <br />(e) If Federal or State law permits the Grantee to provide non- <br />video services to Subscribers through the facilities of the Cable System, and to <br />the extent the Grantor has the regulatory authority to collect either a Franchise <br />Fee or an in-lieu-of-franchise-fee payment on such services, then the fee for <br />revenues derived by the Grantee from such services shall be at the maximum <br />rate permitted by law, following a public hearing and an affirmative Council vote, <br />and beginning on the date that Grantor has the authority to collect such a fee. <br />a <br />