§ 4. [System expansion.]

I.

System expansion, isolated subscribers.

(a)

The "designated service area" for this nonexclusive franchise is the incorporated area of the city.

(b)

Grantee's present construction is approved, and grantee shall extend cable television services to any isolated residence located within the designated service area at the standard rate if:

(1)

The resident requests the service extension, and

(2)

The service connection to the isolated residence would require no more than a standard 100-foot drop line.

(c)

Grantee shall extend cable television services to any isolated residence requiring more than a standard 100-foot drop line at a premium installation rate if such service has been requested by the resident. The premium installation rate charged shall be the actual cost for the installation less the cost of installing a subscriber by means of a standard 100-foot drop line. Grantee may require advance payment for such installation. The grantee's installation charges and rates inside the city shall at no time be greater than the rates to be charged outside the city in West Orange County.

II.

System expansion new or existing developments—Overhead cable construction.

(a)

Grantee shall extend its distribution facilities and cable television services to any area within the designated service area where there exists 20 dwelling units which have received a certificate of occupancy from the city for each strand-mile of cable extension required or portion thereof. Grantee shall have six months from the issuance of the certificates of occupancy for new dwelling units to substantially complete construction and provide service to the new dwelling units. The grantee's obligation to extend its distribution facilities and cable television services is contingent upon at least 20 residences or group of residences to be serviced having requested service in writing as provided in subparagraph V hereof.

(b)

Any development or group of residences not meeting any or all of the above requirements may be served at grantee's discretion.

III.

System expansion for new developments—Existing underground.

(a)

Grantee shall extend underground energized or unenergized cable or conduit to all new residential developments which meet the requirements of section 4(II) as they are constructed. Costs of trenching, conduit, pedestals and/or vault and laterals as well as easements therefore required to bring service to the development shall be borne by the grantee.

(b)

All installations and construction related to cable television by any developers and/or landowners shall be to the specifications of the grantee. Grantee shall not be required to provide cable television services to such a development until such development has at least 20 residential dwelling units that have agreed in writing as provided in subparagraph V hereof to subscribe to receive cable services.

(c)

(1)
It shall be the responsibility of the grantee to obtain written permits and approvals from the city and all other governmental agencies and easement holders prior to beginning any installation. It shall be the responsibility of the grantee to coordinate the proposed installation with all governmental agencies, easement holders and beneficiaries, and any persons holding an interest in the property where the installation is proposed. It shall be the responsibility of the grantee to determine any conflicts of its proposed installation with the facilities or equipment of easement holders or beneficiaries. The grantee shall join and maintain a continuous membership in U.N.C.L.E. and use its services prior to each installation.

(2)

The installations in easements shall be in accordance with the National Electrical Code. The pedestals and amplifiers installed or worked on by the grantee after December 31, 1992 shall be marked by the grantee with the name of the grantee. All pedestals and amplifiers of the grantee shall be marked within 18 months after December 31, 1992.

(3)

Within 30 days of the completion of any installation in compatible easements, the grantee shall furnish to the city engineer a set of as-built plans and maps of the installation.

IV.

Undergrounding of the system. For any system expansion, the grantee shall be required to place the cable system underground. For existing facilities, grantee shall replace aerial facilities with underground facilities concurrently and in cooperation with similar programs of the telephone and/or power utilities. Grantee may, at its option and its expense, choose to place its existing facilities underground regardless of whether telephone and power utilities are underground or aerial. Where undergrounding is required, the grantee shall have the option of sharing or not sharing utility trenches, so long as all other utilities using said trench consent to such in writing.

V.

Credit status of new subscribers.

(a)

Notwithstanding anything to the contrary contained herein, the grantee may refuse to provide service to anyone who does not commit in writing to subscribe for at least a one-year period to the basic cable service offered by the grantee. In cases where, in the grantee's judgment, after conducting a reasonable inquiry with respect thereto, the credit standing of the prospective subscriber is poor, the grantee may require a nonrefundable deposit equal to one year's service charge for basic cable television service, which deposit shall be applied against the service provided during the first year.

(b)

In addition to the nonrefundable deposit for one year's service set forth in the preceding subparagraph (a) (or at grantee's discretion, as an alternative thereto), grantee may require a deposit from each subscriber whose service requires the use of subscriber terminal equipment ("the equipment deposit"). The amount of the equipment deposit shall not exceed the cost to grantee of purchasing new subscriber terminal equipment of similar kind and description to that used by it in providing such service plus the cost of installing same. The equipment deposit shall be refundable upon the termination of service provided that the subscriber shall have returned the subscriber terminal equipment to grantee in as good a condition as it was when it was installed in subscriber's home, reasonable wear and tear excluded, and upon the payment to grantee by subscriber of all amounts due and owing to the grantee for services rendered as of the date of termination of service. Grantee shall have the right to waive the requirement for such a deposit for existing subscribers or for new subscribers who have demonstrated their credit worthiness to grantee in accordance with grantee's standards for determining same applied on a nondiscriminatory basis.