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~ .: MEIHORAl'\;l)lJiYI OF T.0lDERSTAl'fDlNG This Memorandum of UndersTanding is entered into thisolq day of~~ , 199f by and between the North Central Suburban Cable Communications Commission (hereinafter "Commission"), a joint powers commission COnsiSTing of the cities of Blaine, Centerville. Circk Pines, Lexington, Lino Lakes, Ham Lake, Spring Lake Park and Coon Rapids (hereiilafter "iyfember Cities"), and Meredith/New Heritage Strategic Partners, L.P.; Nonh Central Cabie Communications Company; and Group W of the North Central Suburbs, Inc., d/b/a MerediTh Cable (hereinafler "Meredith"), as to cenain rate rewlarorv and other issues within the authority ~ - . cf the Commission, and by and between the Member Cities and Meredith as to issues solely within the authority of the Member Cities. Meredith is the operator of cable communications systems operating pursuant to franchises granted by the Member Cities ("Cable System"). The franchises granted by those cities to Meredith shall be hereinafter collectively referred to as the "Franchise". The Franc:1i:,e is adminiSTered and enforced pursuant to a Joint and Cooperative Agreement (hereinafter "Agreement") creating Commission. The purpose of this Memorandum of Undersl.1nding (hereinafter "Memorandum") is to set forth c~rrain understandings, STipulations and agreemems between the Member Cities and :vferedith 'Nith regard to lhe respor>..sibility for and funding ,)f public, educational, govci1lffiemaL religious, alld iibrary progranm1ing ("PEG Programming"); and between Meredith aUG Commission with regard to Meredidl' s basic service rates and related equipment charges; provision by MereditJl of "Universal PEG Service", certain Grants to be paid by Meredi!:h [G Cammis.:iion; and treatment of "ProfiTs" upon the sale or transfer of ownership of any p,Jr[ of Ivleredith'~ cable system sufrlcient to require Member Cities' approval pursuant to r..'1e Franchi~e. Commission is authorized by the Agreement and applicable state and federal laws and regulations to negotiate and ma..1ce such contracts or agreements and take such other action as it deems necessary and appropriate to accomplish its purposes in administering and enforcing the Franchise. Anv Franchise Ordinance amendments remain the exclusive authority of each Member (. ~lty. The understandings, stipulations and agreements between the Member Cities and lv[eredith herein are in addition to and external to the Franchise and are as follows: 1. PEG FUNDING AND RELATED OBLIGATIONS. Meredith shall remain, for the remainder of the current Franchise and any subsequent renewed franchise period [The sum total of which shall not to exceed fiftetn (15) years 'tv i~hout mutual agreement of both parties], responsible and obligated for the provision and funding of PEG 1 P.S