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Minnesota Statutes Section 238.084, Grantee shall provide and make available for PEG <br /> Access usage within the Service Area in accordance with Exhibit E hereto. <br /> a. PEG Access Facilities shall be operated by the City. <br /> b. Community Access/PEG Programming. Subject to the legal, financial, and <br /> technical feasibility of same, Grantee shall, upon request from the City provide <br /> carriage of the Lake Minnetonka Cable Commission (LMCC) PEG programming <br /> originating from the LMCC and the Cities of Wayzata and Medina. Grantee will <br /> work with the City to explore the feasibility of broadcasting programming <br /> originating from the City in the future. <br /> SECTION 7 <br /> OPERATION AND ADMINISTRATION PROVISIONS <br /> (1) Franchise Fee. <br /> a. During the term of the Franchise, Grantee shall pay monthly to the City a <br /> Franchise Fee of five percent (5%) of Gross Revenues or a lower percentage <br /> amount as established by the City Council from time to time. Grantee and City <br /> may mutually agree to increase the Franchise Fee subject to Applicable Law. In <br /> the event Grantee bundles or combines Cable Services (which are subject to the <br /> Franchise Fee) with non-Cable Services (which are not subject to the Franchise <br /> Fee) so that Subscribers pay a single fee for more than one (1) class of service <br /> resulting in a discount on Cable Services, Grantee agrees that for the purpose of <br /> calculation of the Franchise Fee, it shall allocate to Cable Service revenue no less <br /> than a pro rata share of the revenue received for the bundled or combined <br /> services. The pro rata share shall be computed on the basis of the published <br /> charge for each service in the bundled or combined classes of services when <br /> purchased separately. <br /> b. Each Franchise Fee payment shall be paid monthly not later than thirty (30) days <br /> following the end of a given month and each payment shall be accompanied by <br /> the Franchise Fee Payment Worksheet in the form attached hereto as Exhibit H. <br /> c. Except as otherwise provided by law, no acceptance of any payment by the City <br /> shall be construed as a release or as an accord and satisfaction of any claim the <br /> City may have for further or additional sums payable as a Franchise Fee under <br /> this Franchise or for the performance of any other obligation of the Grantee. <br /> d. Any Franchise Fees owing pursuant to this Franchise which remain unpaid more <br /> than thirty (30) days after the end of a given quarter shall be delinquent and shall <br /> immediately thereafter accrue simple interest at twelve percent (12%)per annum. <br /> Enforcement of unpaid Franchise Fees shall be handled in accordance with <br /> Section 9(7), however, Grantee shall in all cases be subject to interest on any <br /> payment more than thirty (30) days after the end of a given month. <br /> 18 <br /> 232860v1 <br />