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(See Appendix "A".) With a periodical analysis of the placing methods and costs associated with them, a broad gauge costing model can be developed for the NETWORK that is very close to actual contract costs. The elements making up the installed cost can be used to apportion the revenues from any fiber leasing arrangement in a fair and equitable way. Examples of how the revenue will be shared are shown in Appendix "B". The City will function as the contract and billing agent on License Agreements relating to NETWORK on behalf of the CONSORTIUM. Revenues will be collected as negotiated in the contract with the licensee, and the City will deposit the funds in the Holding Account set aside for the purpose of collecting and dispersing funds for the NETWORK. As revenues from License Agreements are deposited to the account, a record of the percentages in which the funds are credited among the CONSORTIUM members will be kept and a quarterly report will be made to each member. Funds generated from leasing fibers will be used to pay for maintenance, expansion, and other expenses. If the funds in the account accumulate faster than what is dispersed from the account, any member may request a disbursement from its portion of the account, but preferably no more frequently than once per quarter. This request is to be made on Form IRNET1 as shown in Appendix "B". As costs are identified that are to be shared among the members of the CONSORTIUM, an internal invoice will be generated to the member organizations indicating each agency's portion of the cost along with a complete description of the costs. If there are sufficient funds available in the holding account of the CONSORTIUM, the member organizations can have the payments made from their portion of the holding account by authorizing such actions on the invoice and returning to the City. A sample invoice is shown in Appendix "B". C. Allocation of Fiber When a third party desires to enter into a License Agreement with the CONSORTIUM, the fiber to be used for the License Agreement shall be in the same proportion as those reserved by each member for its use. For example, a customer desires to lease twelve (12) fibers of a seventy-two (72) count line, of which the City owns thirty-six (36), and the County and District each owns eighteen (18). In this instance, assuming the City, County and District have fiber available to license, six (6) of the City's fibers would be used, and three (3) each from the County and District. If a member of the CONSORTIUM does not wish to participate in the License Agreement, its ownership share will be disregarded for the purpose of calculating proportionate share ownership to determine the quantity of each member's fibers available for licensing. In the example above, assuming the District does not wish to license any of their fibers, then the total line count would be reduced to fifty-four (54), of which the City would own sixty-six and two-thirds per cent (66 2/3%) and the County would own thirty-three and one-third per cent (33 1/3%). In this instance, assuming the capacity is available, eight (8) fibers from the City and four (4) from the County would be used for the License Agreement. Joint Fiber Optics Project - Interlocal Agreement Page 7 of 18