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17 <br />the collection of the fee from such Subscribers. The Grantor, at its <br />election, may decrease (or eliminate) the amount of the PEG Capital <br />Charge upon sixty (60) days written notice to the Grantee. <br />4. The PEG Capital Fee shall be itemized as a monthly charge to directly <br />billed Basic Service Subscribers and shall be included by the Grantee in its <br />statements for the provision of Basic Service. No Franchise Fee payment <br />shall be due on such funds collected by the Grantee. The Grantee's sole <br />obligation shall be to remit the amounts of the PEG Capital Fee it collects <br />to the Grantor on a quarterly basis along with the Grantee's Franchise Fee <br />payment. Other than as outlined in Section 13A, the Grantee shall have no <br />obligation to attempt to collect unpaid PEG Capital Fee on behalf of the <br />Grantor. The Grantee shall not be obligated to terminate service to any <br />Subscriber for failure to pay all or any portion of the PEG Capital Fee. <br />5. The Grantee's obligation to bill and remit the PEG Capital Charge shall <br />terminate upon the Grantee's giving thirty (30) days written notice to the <br />Grantor should the funds collected through the PEG Capital Fee be used <br />by the Grantor or an Access Center, which may include the Grantor, for <br />purposes other than the production of Public, Education, and Government <br />Access Programming distributed within the Grantor's Franchise area over <br />facilities provided by the Grantee. <br />6. The Grantee shall be permitted to recover all costs of funding Franchise <br />requirements in support of PEG Access equipment, facilities, and channels <br />including a return on the funding as permitted by rules of the FCC. <br />7. The PEG Capital Fee described in this Section is not a Franchise Fee <br />payment and falls within 47 U.S.C. §542(g)(2)(C). In all other respects, <br />all payments, contributions, services, equipment, facilities support or other <br />resources supplied by the Grantee pursuant to Franchise requirements <br />imposed by the Grantor shall be treated in accordance with applicable law <br />for purposes of Franchise Fee computation. <br />8. The Grantee shall be permitted to pass through all Franchise <br />commitments, obligations, or payments or recover them through <br />adjustments to Basic Service Subscriber rates, as permitted by applicable <br />law and FCC regulations and the Grantor shall promptly approve all such <br />rates or adjustments submitted by the Grantee in accordance with such <br />laws or obligations. <br />B. Operating Expense Support Fee for PEG Access <br />1. During the term of this Franchise, the Grantee may collect from cable <br />television subscribers residing within Orange County, a maximum of two <br />dollars ($2.00) per month, per Subscriber or equivalent unit to fund the <br />8/22/2003 <br />