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, Memorandum, Negotiated Renewal Franchise with Meredith Cable Page Three June 25, 1998 In addition, we are still discussing whether any lift stations should be included for future SCADA systems. The institutions will be connected to both networks free of charge and current uses will continue free of charge. Additionally, three (3) upstream and three (3) downstream channels will be provided for non-video purposes, free of charge, with additional non- video use of this network provided for "cost plus 45%" or the "most favorable comparable user rate." For the six fibers to the nodes, additional use of these fibers will be on an "actual cost only" basis. 7. Construction will be completed on or before November 30, 2000. 8. The new franchise has attempted to interface with right-of-way ordinances. Since Arden Hills has not adopted such an ordinance, the franchise needed to answer questions regaxding construction or access to rights-of-way in the City. However, should Arden Hills adopt such an ordinance, that ordinance will pre-empt the franchise in Section 3, construction standards and permitting, and 8.5(c), mapping. In all other situations, the cable franchise will prevail over conflicting ordinances, except for those other situations where the City is involved in a lawful exercise of its police power. 9. Undergrounding. The company will have to put any new construction underground where all other utility lines are underground, unless the City elects to require otherwise. In other words, the City has complete authority to require whatever policy it wishes in this area. Absent such an action, the general rule, above, will apply to the cable company. 10. A performance bond of $500,000 will be maintained by the company, and the company will be fully insured and agrees to defend, hold harmless and indemnify the City regarding any action of Grantee related to the franchise and any action resulting from the City's administration or enforcement of the franchise. 11. The company must maintain a$25,000 Letter of Credit per City from which the City may draw monies to enforce various penalties and fines delineated in the franchise. 12. The City retains the authority to review any qualifying transfer of ownership. The City further retains its right to purchase the system for the value of the consideration proposed in such a transaction. The major provisions of the franchise are not substantively changed from the previous franchise except to bring the document in compliance with current law.