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Schedule A <br />System Cost and Initial Term <br />The Initial Term shall be for a period of three (3) years. <br />System Costs shall be: <br />Year One: $121,000 per yeaz. <br />Year Two: $44,750 per year. <br />Year Three: $44,750 per year. <br />Payment Schedule: <br />Yeaz One: <br />$90,750 payable upon execution of this Agreement; <br />$30,350 payable on the date of the Launch Event; <br />Years Two and Three (and option years): <br />$11,187.50 due at the beginning of each quarter, the first of which starts with the first day <br />of the first full calendar month following the one-year anniversary of Launch Event. <br />Launch Event: <br />The Launch Event shall be scheduled to take place after all of the screens are installed <br />and operational and the first eight "spots" have been to produced. CCN USA will work <br />with the City to arrange a system launch aimed at getting the maximum exposure for the <br />city and its new system. CCN will work closely with the Cityto maximize earned media <br />including attendance of television crews and print media. Those invited to the launch <br />will include members of the media, Santa Ana city officials, other city, county, state, and <br />national officials. A newsworthy individual will be recruited to conduct the official <br />"switching on of the system" with Santa Ana leaders. The launch will be filmed for the <br />city and DVD's of the event will be supplied for post-event publicity. <br />The City shall pay the cost of the launch event. CCN shall work with the City to locate <br />sponsors to offset the cost of the launch event. <br />