§ 304. Support for public, educational and government use of the cable system.

304.(a). In addition to satisfying the other requirements of this Article III, the Company is required to provide the following additional PEG use funding (as used in this Section 304, PEG access refers to the channels, facilities and equipment used in connection with the channels on the subscriber network provided under Section 300 and associated interconnections; PEG use includes PEG access and institutional network use, including use in connection with the network provided pursuant to the agreements referenced in Section 301):

304.(a).(1). The Company will provide the following capital grant for PEG use for so long as it continues to operate under this franchise: 2.5% of Gross revenues paid quarterly based upon revenues for the calendar quarter. The first payment shall be due on May 15, 2015 based on Gross revenues for the quarter beginning January 1, 2015 and ending March 31, 2015, and thereafter, payments shall be due 45 days after the end of each calendar quarter, based on revenues for that quarter, or if the franchise should terminate or be revoked, 45 days after termination or revocation for any portion of quarter during which Company provided cable service. To remove any doubt, in addition to the amounts owed under this paragraph, Company shall also pay the amount that would have been due for the quarter ending December 31, 2014.

304.(a).(2). Notwithstanding the foregoing requirements of Section 304(a), if Company has a valid and binding contract with an entity designated by the City to manage any public access channel, the City agrees that Company may offset any amount it pays under such contract against payments required under Section 304.(a).(3). The City may establish offset limits for each calendar year by resolution. Nothing in this section requires or shall be deemed to require Company to make any payment that constitutes a franchise fee under 47 U.S.C. § 542.

304.(b). Throughout the franchise term, playback for the PEG access channels must be configured so that the designated entities that are responsible for the access channels are able to use their own independent automated playback facilities, located the premises of their choice. Any master control that Company intends to use for its operations must be located outside the space occupied by a designated entity, unless the parties agree otherwise. The playback facility must be configured so as to permit the designated entity to program all channels for which it is responsible for playback, on a live or taped basis. Company shall continue to have access to the designated entity's master control so that it can conduct necessary maintenance and repair upon reasonable notice or at any time in the event of emergencies.

304.(c). Public access facilities .

304.(c).(1). Subject to section 304.(c).(1).—(3). below, through and including December 31, 2015, Company shall provide, free of rent and other charges, except those specified below, the space at 375 Jackson Street (hereinafter "designated space" or "space") for use by the designated entity responsible for public access. The designated entity shall pay Company fifty (50) percent of the amount (if any) actually paid by the Company annually for rent, property taxes and operating charges, but no more than $12,500.00 per annum. The designated space shall include the studio, edit facilities and other equipment and resources, available for PEG use as of the effective date. Company shall maintain the availability of existing utilities and HVAC in the space as part of Company's obligation to ensure that this space remains commercially habitable consistent with its existing use and will allow the designated entity to expand HVAC and utilities, and allow the designated entity temporary access to any space it may control within the building for such purposes. In addition, the Company shall ensure that adequate restroom facilities are available to the designated space.

304.(c).(2). In the event the designated entity is denied use of the designated space by Company or any third party, the use of the designated space is prohibited by local law or code, or the designated space is rendered unfit for use as a video production and playback facility, prior to January 1, 2016, Company shall provide to designated entity on comparable terms and conditions, comparable space finished to comparable quality and with comparable utilities and services as existed in the designated space at the time of relocation at an alternative location (hereinafter "substitute space" or "space"), mutually selected by Company and City, or, if the parties cannot agree, by binding arbitration pursuant to Section 430.035 of the City's Legislative Code. Company shall pay reasonable relocation expenses, including, but not limited to, expenses for reinstalling electrical and technical equipment and for third-party reactivation, reconnection of internal equipment, and balancing. The alternative space must be provided so that there is no interruption in PEG operations.

304.(c).(3). Beginning January 1, 2016, the Company is not responsible for providing PEG space. Company, however, is responsible for providing and maintaining the connections to any PEG playback facility designated by City, whether at 375 Jackson Street or other location and shall provide the equipment required by Section 300. At City's request, and if permitted by the building owner, Company will transfer the lease for facilities at 375 Jackson Street to City or its designee.

304.(d). Company shall provide the following promotional support for access:

304.(d).(1). Two (2) cross-channel public service announcement spots daily to promote community programs and the availability of community programming facilities and training;

304.(d).(2). Insertion at the Company's cost in at least two (2) bill stuffers annually for promoting the designated entity's service or generally promoting community programming, which bill stuffers shall be produced by the designated entity and shall conform to the Company's standards and policies for size and weight. Any bill stuffer denigrating the Company, its service or its programming is not permitted.

304.(d).(3). Distribution of the designated entity's newsletter to Company's employees.

304.(e). The designated entity responsible for public access shall indemnify, keep and save the City and Company free and harmless from any or all claims (other than claims for which the Company may enjoy immunity under 47 U.S.C. Section 558) arising out of the designated entity's actions or omissions, or its PEG programming operations, to the extent the claims are not attributable to the acts or omissions or operations of the party seeking indemnification. Subject to the foregoing, in the event that suit shall be brought or recourse or damages sought against either the City or the Company, the designated entity shall defend and indemnify the City and/or the Company and pay any judgments or damages with all costs. The indemnity is conditioned on the party seeking indemnification tendering notice to the designated entity of any proceeding asserting claims for which it may seek indemnity within ten (10) days of the date the party seeking indemnification receives notice of such proceeding. The party seeking indemnification may participate by its own counsel in any action against it, but at its own expense. The City may require the designated entity to obtain liability or other insurance in the City's discretion.

304.(f). Payments made under this agreement by Company in one calendar year do not have to be spent in that calendar year. References to the designated entity include any successor to the designated entity. An entity that is a designated entity may only hold and use the resources, equipment, facility and funds provided for under the franchise for so long and to the extent it is a designated entity, and must transfer resources, equipment, facilities and funds to its successor upon request of the City.

304.(g). For any period or for any channel where there is no designated entity, the City, at its option and after notifying the Company in writing, the City shall act and enjoy all rights and responsibilities as if it were the designated entity.