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pursuant to this Section 5.1.2.1 that is not utilized by the locality for at least eight (8) hours per day shall no longer be made available to the LFA and may be programmed at the Franchisee's discretion. At such time as the LFA can certify to the Franchisee a schedule for at least eight (8) hours of daily programming for a period of three (3) months, the Franchisee shall restore the previously re -allocated Additional PEG Channel. 5.1.3. The LFA hereby authorizes Franchisee to transmit such programming within and without LFA jurisdictional boundaries. Franchisee specifically reserves its right to make or change channel assignments in its sole discretion. 5.1.4. PEG Connection: Franchisee shall provide and maintain upstream equipment and facilities necessary to transmit the PEG Channels from the following PEG origination points: (1) City Hall, 801 Crawford St., 5th Floor, Portsmouth, Virginia ("City Hall"); and (2) I.C. Norcom High School, 1801 London Blvd, Portsmouth, Virginia ("Norcum High School") (collectively, the "PEG Locations"). The Franchisee's obligations under this Subsection 5.1.4, including its obligation to provide upstream equipment and facilities necessary to transmit signals, shall be subject to the provision by the LFA, without charge to the Franchisee, of: (1) access to the PEG Locations; (2) access to any required PEG equipment within the PEG Locations and suitable required space, environmental conditions, electrical power supply, access, and pathways within the PEG Locations; (3) video signals in a mutually agreed upon format suitable for PEG Access Channel programming; (4) any third -party consent that may be necessary to transmit PEG signals; and (5) any other cooperation and access to facilities as are reasonably necessary for the Franchisee to fulfill the obligations stated herein. The LFA shall further be responsible for ensuring that such video signals and signal feeds are properly connected to the correct PEG Access Channel for distribution to Subscribers. 5.1.5. Notwithstanding the obligations in Section 5.1.4, Franchisee shall not be obligated to provide LFA with either cablecast equipment and facilities or personnel responsible for maintaining and operating such cablecast equipment and facilities used to generate any such PEG signals. 5.2. PEG Grant: 5.2.1. Franchisee shall provide a PEG capital fee to the LFA (the "PEG Capital Fee") as set forth in this Subsection 5.2.1. The PEG Capital Fee shall be used by the LFA to support the capital costs of PEG Access Channel facilities. 5.2.1.1. The PEG Capital Fee shall be the sum of fifty cents ($0.50) per month, per Subscriber in the Service Area to Franchisee's Basic Service Tier. The PEG Capital Fee shall be delivered to the LFA within forty-five (45) days after the beginning of each calendar quarter during the Franchise term. Calculation of the PEG Capital Fee will commence within one (1) month after the Effective Date of this Franchise as defined herein and shall only be required of Franchisee so long as the same quarterly payment amount is required of all other providers of Cable Service within the LFA. 5.2.1.2. If the Franchisee fails to materially comply with timely and full payment of the PEG Capital Fee pursuant to Subsection 5.2.1.1, Franchisee agrees to