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4. The Company shall make available for the term of the Franchise and any renewals <br />thereof for use by the Commission and City those six channels currently on the North Central <br />Suburban cable system and currently known as the Public Access Channel 15, the Government <br />Access Channel 16, and the Educational Access Channels 58, 60, and 61, and the Religious <br />Access Channel 57. The Company shall separate cablecasting on these channels, if not already <br />accomplished, so that these channels may be discretely programmed and cablecast to Coon Rapids <br />and the remaining seven (7) Member Cities of the Commission. The expense for system <br />conversion to allow for such discrete cablecasting shall come from any excess PEG fees collected <br />by the Company in 1995 and 1996, and the first two (2) months of 1997 pursuant to that certain <br />Memorandum of Understanding ("MOU") by and between City and Company. In addition, the <br />Commission and City shall have complete and unrestricted access to the above-mentioned <br />channels, however, the Company will have full responsibility for the term of the Franchise for <br />the maintenance, repair, and technical performance of said channels. <br />5. Commencing January 1, 1997, the PEG Fee established pursuant to the <br />Memorandum of Understanding shall be $1.75 per month per subscriber. <br />6. The Company shall pay the full amount of the PEG Fee collected from the <br />subscribers of City to the Commission, or its designee. The Company shall prepay quarterly, an <br />estimated quarterly PEG Fee, which shall be annually reconciled to reflect actual PEG Fee <br />receipts by Meredith subject to more frequent reconciliation by mutual agreement of the parties. <br />The first prepayment shall be on or before March 1, 1997 for March, April, May and June of <br />1997. <br />7. The Company shall assign and the Commission, or its designee, shall assume all <br />real estate and equipment leases and contracts relating to PEG Programming. <br />8. The Commission shall be responsible for any and all I -Net or other switching <br />related to PEG Programming or non-profit use of the I -Net capacity for its seven (7) Member <br />Cities, which shall occur only as provided in the Franchise and consistent with applicable laws. <br />9. The Commission shall advise Meredith in writing at least thirty (30) days prior to <br />the Effective Date of Transfer of its intention to make offers of employment to Meredith personnel <br />relating to PEG Programming. The Commission intends to employ all five (5) current employees <br />of Meredith and North Central Community programming operations. <br />10. City agrees to allow Meredith to keep its local customer service office in the space <br />it occupies as of December 31, 1996, provided that Meredith assumes the capital costs necessary <br />to segregate the office from the remainder of Commission space, and further provided that <br />Meredith shall pay One Hundred ($100.00) per month rent to Commission commencing the <br />effective date of any Transfer. <br />2 <br />