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i. Parity of Obligations. The City will impose equivalent PEG Access obligations on any other franchised provider of Cable Service in the City. Section 4.3 Drops and Service to Public Buildings. a. Subject to applicable law, and provided that Grantee's service area includes the public institutional site, Grantee must provide, without charge, monthly Basic Cable Service, one (1) Drop, one (1) outlet, and one (1) Converter of the type and functionality made available to Subscribers ("Complimentary Service") to the public institutional sites listed in Exhibit A-2 attached. The programming provided by Grantee is not for public display. The City shall hold the Grantee harmless for any copyright, or other penalties, incurred due to improper use of free service. If additional Converters, other customer premises equipment ("CPE") or other services (e.g., a broadband Internet connection) are required to receive Complimentary Service, Grantee reserves the right to charge the institution the published rate for such CPE or other services consistent with applicable law. b. Subject to applicable law, the Grantee shall connect such additional public administration buildings within Grantee's service area as mutually agreed upon by the City and Grantee. Section 4A Receipt of Subscriber Payments The Grantee must maintain a convenient means for Subscribers to make payments such as the ability to make payments electronically via a company website. SECTION 5. ADMINISTRATION PROVISIONS Section 5.1 Franchise Fee. a. The Grantee shall pay a Franchise Fee to the City in an amount equal to five percent (5%) of its Gross Revenues. The Grantee shall remit Franchise Fee payments to the City on a quarterly basis within 60 days of the close of the preceding calendar quarter. Payments shall be based on Gross Revenues generated during the preceding calendar quarter. In the event Grantee offers a bundle or package of Cable Services and non -Cable Services at a discounted rate, the Grantee must allocate revenues between Cable Services subject to the Franchise Fee and non -Cable Services (which, for the avoidance of doubt, includes revenue from third -party programming services) that are not subject to the Fee on a proportionate pro rata basis in accordance with Generally Accepted Accounting Principles ("GAAP"). In no event shall the Grantee allocate the revenues to evade its Franchise Fee obligations under this Franchise or to disproportionately reduce Gross Revenues. b. Each Franchise Fee payment must be accompanied by a report in form reasonably acceptable to City detailing the computation of the payment. All amounts paid are subject to audit and recomputation by the City, and acceptance of any payment must not be construed as an accord that the amount paid is in fact the correct amount. In accordance with Minn. Stat. § 541.05, any action to recover Franchise Fees must be commenced within three (3) years of receipt of the Franchise Fee payment or due date for such payment. c. In the event that any Franchise payment or recomputed payment is not made on or before the dates specified herein, Grantee shall pay an interest charge, computed from such due date, at the annual rate of one percent over the prime interest rate. DOC SOPEN\SH255\ 16\843960.v2-2/3/23