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Barnett ; B- 2-92 ; 4:41iPM ; Minneapolis, MNy 804 971 95234 5 • right to offset the salary and applicable benefits of this employee against applicable franchise fees. J. Both the City and Grantee recognize that interest in the access channels identified in Section 6.05A may increase during the life of this Franchise. Both parties agree that an annual meeting is appropriate to review interest in these channels. At this meeting, a representative of the City and a representative of Grantee shall discuss the interest in access channels including discussion of facilities, equipment and other access related issues. The parties shall determine whether interest in the access channels warrants the increase or decrease of employees to administer the access channels. If both parties mutually agree that more employees are necessary to administer the channels, Grantee shall hire said employees. City agrees that salary and applicable benefits of said employees shall be offset by Grantee against applicable franchise fees. 6.06 Access Eauinment and F cil ie A. Grantee shall provide and maintain the existing studio at 324 West Main Street in a reasonable manner. Within eighteen (18) months from the date of acceptance of is this Franchise, the City shall consider purchasing television production equipment for use at the studio, including but not limited to: an industrial grade or better grade switcher, two (2) studio cameras, two (2) portable SVHS camcorders or equivalent, an SVHS editing equivalentSystem or ll complement of audio equipment. Tit e in l the equipmentsoPurchased shall belong to the City. B. On or before April 1, 1993, Grantee shall provide the City a check paid to the order of the City in the amount of Fifty Five Thousand Dollars and oo/loos ($55,000.00), all or a portion of which may be used by the City to purchase the access equipment identified in Section 6.06 A. C. On or before the date which is five (5) years from the date of acceptance on this Franchise, Grantee shall provide the City with an additional Thirty Thousand Dollars and 00/100s ($30,000.00), which may be used by the City, over the remaining term of the Franchise, for the purchase of additional access equipment, to replace then existing access equipment or for other cable related purp__ o T pursuant to the terms and con 1 ions o Franchise. is • D. The payments made pursuant to Section 6.06 B and 6.06 C shall not be deemed to be "franchise fees" within the meaning of Section 622 of the Cable Act (47 U.S.c. § 542) and such payments shall not be deemed to be: (i) "Payments -in-kind" or involuntary payments chargeable -15- N