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Exhibit A-1 attached. The Grantee shall not be required to provide end-user equipment. <br />The City may designate relocated or additional live programming sites provided that the City <br />shall pay the actual construction cost of connecting such relocated or additional live <br />programming sites prior to the Grantee's construction of same. The Grantee must ensure <br />that the System meets the technical standards attached as Exhibit B at all live origination <br />sites. The Grantee must further ensure that the City can "narrowcast" programming <br />originated from City Hall consistent with Section 4.2c. <br />e. High Definition. <br />(i) Within one hundred and twenty (120) days after the Effective Date, unless <br />delayed by events out of Grantee's reasonable control, the Grantee shall convert the <br />Commission's area -wide PEG Access Channel (i.e. the Channel that is not <br />"narrowcast" to each member city pursuant to Section 4.2(c)) to high definition <br />("HD") provided that the programming signals are provided to the Grantee in HD <br />and meet Grantee's technical specifications for HD channels. Thereafter, at such <br />time as Grantee makes at least 90% of all non -PEG Channels available in HD, the <br />Grantee shall also convert the "narrowcast" PEG Access Channel to HD provided <br />that the programming signals are provided to the Grantee in HD and meet Grantee's <br />technical specifications for HD channels. The City understands that, although the <br />Grantee must ensure that the PEG Access Channels are cablecast on the Basic Cable <br />Service tier and available to all Subscribers at no additional charge, the HD PEG <br />Access Channel will not be located on the Basic Cable tier, the signal from the HD <br />PEG Access Channels may not be available in HD on the Basic Cable tier of service, <br />and Grantee shall have no obligation to carry PEG Access Channels in more than <br />one format; i.e. dual carriage. Grantee's costs to purchase equipment to convert and <br />distribute programming on the PEG Access Channels in HD will be reimbursed by <br />the City or Commission in an aggregate amount not to exceed Seven Thousand Five <br />Hundred Dollars ($7500.00) within sixty (60) days of receipt of invoices evidencing <br />Grantee's expenditures. ii) The City acknowledges that in order to receive Access <br />Channels in HD format Subscribers may be required to buy or lease special <br />equipment, or pay additional HD charges applicable to all HD services, <br />f. PEG Access Capital Support. In addition to the requirements of Section <br />4.2(a) -(d) above, the Grantee shall collect and remit a PEG capital fee of up to eighty-five <br />cents ($.85) per Subscriber, per month ("PEG Capital Fee"). The Grantee shall remit such <br />payments on the same schedule as the Franchise Fee. All amounts paid shall be subject to <br />audit and recomputation and acceptance thereof does not constitute an accord that amounts <br />paid are correct. The PEG Capital Fee as of the Effective Date is eighty-five cents ($.85) <br />per Subscriber, per month. Grantee may itemize any PEG Capital Fee on Subscriber's bills. <br />Payment by Grantee must be separate from and in addition to any Franchise Fee. <br />g. Use of PEG Capital Fee. The City and Grantee agree that the City will <br />expend the PEG Capital Fees solely for capital costs (consistent with GAAP) associated <br />with PEG Access. In consideration for Grantee's obligation to remit the PEG Capital Fee, <br />the City agrees to provide financial support for PEG Access that is equivalent to the amount <br />of PEG Capital Fees collected and provided to the City. Within sixty (60) days of written <br />request, the City shall provide Grantee with an annual report of any expenditures of the <br />PEG Access Capital Fee to insure such fees are used for capital costs related to PEG <br />Access. The report shall also demonstrate how the City fulfilled its requirement to provide <br />matching support for PEG Access. Based on the report, the Grantee may send a written <br />526220v5 RJV SH255-14 5 <br />