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2. Programming. Local programming for the public access channel may be submitted by public access producers residing in Santa Ana. The scheduling of this programming will be at the discretion of the Grantor. 3. Local Production Studio. The parties acknowledge that the existing production studio is currently located at Buena Park High School, 8833 Academy, Buena Park, California. Nothing contained in this subsection is intended to prohibit Grantee from charging facility users for incidental materials and supplies. The Grantee and Grantor understand that this Agreement does not require that a studio be maintained. D. Educational Access Channels. I. Channel Allocations. During the term of this Agreement, Grantee must provide three channels for educational access programming to be used by educational institutions under authority delegated by Grantor 2. Programming. Programming for any educational access channel will be provided by a direct feed from the educational facility or by any other arrangement that is agreed upon between the Grantee and the owner or operator of the educational facility. Grantee shall not be responsible for the cost of relocating the direct feed should an educational facility change the location from which it transmits the programming, if that relocated facility is not within 150 feet of Grantee's existing cable plant. E. Digital PEG Access Channels. I. The parties acknowledge that Grantee may in the future use video compression technology in order to transmit PEG access video programming in a digital format to subscribers. During the transition period when Grantee is converting the cable system to 100 percent digital programming, consistent with federal law, Grantee must carry the PEG access channels on both its analog and digital cable systems. This provision, however, shall not require Grantee to carry duplicative digital and analog PEG access channels solely on the basis that Grantee is offering digital channels, as long as digital subscribers will also have access to PEG analog channels. 2. When Grantee has converted all video programming, both commercial and non-commercial, from analog to digital, then the parties will meet and confer concerning additional bandwidth that may be allocated for PEG access use, taking into consideration the prior use of PEG access channel capacity, both analog and digital, and the extent of any excess demand that may then exist. 12097-0002\6~0672v19.doc F-5 City of Sanfa Ana EXECUTION COPY 4/07/0;;