§ 19. Franchise fee.

As compensation for this franchise, Company shall pay to City a franchise fee equal to five percent (5%) of the gross revenues received by Company from the operation of the Cable System in the service area, provided however, that Company may credit against any such payments any tax, fee, or assessment imposed by the City on, and paid by, the Company which is unduly discriminatory against cable operators or cable subscribers.

Company must pay the franchise fee due to City for the preceding six-month period within forty-five (45) calendar days f the end of that period. City may inspect and audit books and records of Company which are reasonably necessary for a franchise fee audit, and recompute any amounts determined to be payable under the franchise. The cost of the audit will be borne by Company if the annual payment to City is increased by more than five percent (5%) as a result of the audit.