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<br />, <br />, ' <br /> <br />, . <br /> <br />" ' <br /> <br />.,) <br /> <br />SECTION 7. <br /> <br />SUPPORT FOR LOCAL PROGRAMMING <br /> <br />Grantee shall provide the following in accordance <br />with the budget, "Exhibit B," attached hereto and incorporated <br />herein by reference. <br /> <br />7.1 <br /> <br />Grant for Local Progamming <br /> <br />Grantee shall provide two hundred forty thousand <br />six hundred dollars ($240,600) per year during the term <br />hereof to Grantor for local programming. <br /> <br />7.2 <br /> <br />Lease of Studio Facilities <br /> <br />Within six (6) months from and after the effective <br />date of the franchise, Grantor shall notify Grantee whether <br />or not Grantor shall provide a building of approximately <br />12,500 square feet for studio facilities. If Grantor no- <br />tifies it will provide studio facilities, Grantee agrees to <br />enter a lease with Grantor for the studio facilities, which <br />shall be a part of a studio-community facility. Lease pay- <br />ments for such studio facility shall be one-fifteenth (1/15) <br />of four million four hundred fifty thousand dollars ($4,450,000) <br />per year, plus twenty-five percent (25%) of the revenues <br />received by Grantee from leases of the facility for productions <br />which are not produced for the City and twenty-five percent <br />(25%) of advertising revenues resulting from programs produced <br />for the City and/or Orange County. <br /> <br />7.3 <br /> <br />Administrative Space <br /> <br />Grantee shall have the option to include its admin- <br />istrative office in the studio facilities which may be pro- <br />vided by City pursuant to Section 7.2 at a rental price to <br />be negotiated. <br /> <br />7.4 <br /> <br />Change of Use <br /> <br />Grantor's City Manager shall review the quality of <br />local programming performance of Grantee at the end of years <br />4,8 and 12 of the franchise term. If the City manager <br />reasonably determines that Grantee has not provided local <br />programming at a level anticipated by this agreement, i.e., <br />"commercial quality," the City Manager shall report the <br />deficiency to the City Council. The City Council may de- <br />termine to offer the studio and operating budget for the <br />main facility to another production company to operate the <br />main facility and local programming. <br /> <br />7.5 <br /> <br />Staff & Technical Services <br /> <br />Grantee shall provide to the City, the Bowers <br /> <br />-27- <br />