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1999-094 FILE REFERENCE FORM 99-094 x Additional File Exists Additional File Contains Records Not Public, According to the Public Records Act Other FILE(s) Date Initials Amended by Ordinance No. 2005-156 06/07/05 JR AN ORDINANCE AMENDING ORDINANCE NOS 88-189 AND 95-191 AND CHAPTER 8 OF THE CODE OF ORDINANCES, WHICH RESPECTIVELY GRANTED A FRANCHISE TO SAMMONS COMMUNICATIONS, INC AND AUTHORIZED THE TRANSFER OF THAT FRANCHISE TO MARCUS CABLE ASSOCIATES, L P, GRANTING CONSENT TO THE ASSIGNMENT AND TRANSFER OF CONTROL OF A CABLE TELEVISION SYS- TEM AND FRANCHISE FROM MARCUS CABLE ASSOCIATES, L L C TO PAUL G AL- LEN, AND APPROVING AN ACCEPTANCE AGREEMENT AND AN AGREEMENT IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS ORDINANCE, PRO- VIDING FOR A SAVINGS CLAUSE, PROVIDING FOR PUBLICATION, PROVIDING FOR THE EFFECT OF THIS ORDINANCE UPON OTHER ORDINANCES AND RESOLUTIONS, AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Denton granted a cable television franchise to Sammons Com- munmatlons, Inc ("Sammons") pursuant to Ordinance No 88-189 passed by the City Council on November 5, 1988 and duly accepted by Sammons which incorporates the provisions of Chapter 8 "Cable Television" of the Code of Ordinances of the City of Denton, and WHEREAS, the City's Ordmance No 95-191 consented to the transfer and assignment of the Franchise and the cable television system in the City from Sammons to Marcus Cable As- sociates, L P subject to the terms and eonchtlons set forth in the Ordinance and in an Acceptance Agreement dated September 12, 1995 (Orchnance Nos 88-189 and 95-191 and the Acceptance Agreement of September 12, 1995 are hereinafter referred to collectively as the "Franchise"), and WHEREAS, performance of the obligations of the Franchise by Marcus Cable Associ- ates, L P was unconditionally guaranteed by Marcus Cable Operating Company, L P, Marcus Cable Company, L P and Marcus Cable Properties, L P, and WHEREAS, Marcus Cable Associates, L P has converted to a Delaware llunted liability company named Marcus Cable Associates, L L C, which is the current grantee under the Fran- chise, and WHEREAS, the other Marcus entities that are guarantors of the performance of the Fran- ctnse have also converted to Delaware hmlted liability companies respectively named Marcus Cable Operating Company, L L C ("MCOC"), Marcus Cable Company, L L C ("MCC") and Marcus Cable Properties, L L C ("MCPLLC"), and WHEREAS, Marcus Cable Associates, L L C is a wholly owned subsidiary of MCOC which is in turn a wholly owned subsidiary of MCC, and WHEREAS, Charter Commamcatlons Holdings, L L C, a Delaware hmlted liability company ("CC Holdings") is or will be the sole owner of MCC, and WHEREAS, CC Holdmgs is or will be wholly owned by the following entities MCPLLC, Vulcan Cable, Inc, a Waslungton corporation ("Vulcan"), Vulcan Cable II, Inc, a Washington corporation ("Vulcan II"), and Charter Commtmlcatlons, Inc ("Charter"), and WHEREAS, MCPLLC Is owned 74 36% by Marcus Cable Properties, Inc, a Delaware corporation ("MCP Inc ") and 25 64% by Vulcan, and WHEREAS, Paul G Allen is the sole owner of MCP Inc, Vulcan and Vulcan II and owns 93 25% of Charter, and Allen thereby controls Marcus Cable Associates, L L C, the grantee under the Franchise, and WHEREAS, Vulcan as the Manager of MCC pursuant to F~rst Amendment to Operating Agreement dated as of August 25, 1998, and Wi-IEREAS, Charter is managing Marcus Cable Associates, L L C pursuant to a Man- agement Consulting Agreement dated as of October 6, 1998, and WHEREAS, the ownership and control structure as ~t will ex~st after the transfer of con- trol is shown m Exlulut A, and WHEREAS, the transfer of control of Marcus Cable Associates, L L C to Allen, the re- struetunng of the Marcus and Charter cable businesses, and the management of Marcus Cable Associates, L L C by Charter are hereinafter referred to collectively as the "Transaction", and WHEREAS, MCPLLC and Vulcan submitted an Apphcatlon for Franeluse Authority Consent on FCC Form 394 provldmg certam anformat~on with respect to the parties and the pro- posed transfer in accordance with Section 8-62 of the Code of Ordmances of the City of Denton, and the Caty has jomed with a number of other eltles in the Dallas/Fort Worth regmn served by Marcus Cable Associates, L L C to lure the law finn of Vamum, R~ddenng, Schmldt & Howlett L L P to ~examme and evaluate the transfer and to represent the c~ties an negotiations with Paul G Allen and Marcus Cable Associates, L L C regarding the transfer, and WHEREAS, MCPLLC, Charter and Vulcan submitted additional information and docu- ments relatmg to the Transaction and its effect on the prowsaon of cable telews~on service within the City in response to requests of the City, and WHEREAS, the C~ty is relymg upon the foregoing information and documents in acting upon the Application for Franclus~ng Authonty Consent, and WHEREAS, the City Council, relymg on the recommendation of Varnum, Raddenng, Sehm~dt & Howlett, L L P and the City staff, m accordance with Section 8-62 of the Code of Ordanances and apphcable federal laws and regulations, has exammed Paul G Allen's financial capaluht~es, legal qualifications, general character qualifications, and techmcal ability to meet community needs for cable telewslon service and to comply with the provisxon of the Franchise, the current Pole Lea~e and Cable Duct Use Agreements, the conditions ~mposed by tins ordinance, and with all applicable local, state, and federal laws and regulations, and P~e2 WHEREAS, the City intends to consent to the Transaction, subject to acceptance by Marcus Cable Associates, L L C, MCP Inc, CC Holdings, Charter, Vulcan and Vulcan II of the terms and conditions set forth herein, having determined that such consent is in the best interest of and consistent with the public necessity and convenience of the City, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I. That the City Council hereby consents to the Transaction, including the transfer of control of the Franchise and the cable television system from Marcus Cable Associ- ates, L L C to Paul G Allen, subject to execution by Marcus Cable Associates, L L C, MCP Inc, CC Holdings, Charter, Vulcan and Vulcan II of an Acceptance Agreement in the form at- tached hereto and incorporated hereto as Exinbit 1, and subject to execution by Paul G Allen of an Agreement m the form attached hereto and ~ncorporated herein as Exhibit 2 SECTION II. That the City Council hereby consents to and approves Marcus Cable As- sociates, L L C's continued operation under the terms and conditions of those certmn Pole Lease and Cable Duct Use Agreements, attached hereto and incorporated herein as Exinb~ts 3 and 4 for the remaining terms of these agreements SECTION III That to the extent that tins ordinance or the attached Acceptance Agree- ment and Agreement modify any of the terms and conditions of Orthnance No 88-189 and Ordi- nance No 95-191 and Chapter 8 of the Code of Ordinances of the City of Denton, stud ordi- nances and Chapter 8 of the Code of Ordinances are hereby amended Save and except as hereby amended, the remmmng sections, sentences, paragraphs, and provisions of Ordinance Nos 88- 189 and 95-191 and Chapter 8 of the Code of Ordinances shall remtun unchanged and in full fome and effect SECTION IV. That ~n accordance with Section 13 02 of the C~ty Charter, tins orthnance shall become effective twenty-one days alter final approval, if, after that date, Vulcan and Char- ter shall have their written acceptance of this ordinance by signing as prowded below, and pro- vided that, after final approval and before expiration of twenty-one days, the full text of this or- dinance shall be published once each week for two consecutive weeks in the official newspaper of the City, the entire expense of winch shall be borne by Vulcan, Vulcan II, and Charter The City Secretary is hereby directed to publish the full text of this ordinance in such official news- paper of the City once each week for two consecutive weeks immediately following the passage of this ordinance on second reading SECTION V. That Vulcan Cable, Inc, Vulcan Cable II, Inc, Charter Communications, Inc, and Charter Commumcatlons Holdings, L L C for themselves, their successors and assigns shall accept tins ordinance including the attached exhibits and agree to be bound by all of its terms and conditions by executing the paragraph entitled "Acceptance" on page 4 of this ordi- nance SECTION VI. That this ordinance shall be in full force and effect from and after its pas- sage, pubheatlon and written acceptance as above specffied, prowded however, that this ordi- nance shall expire and be of no further force and effect on October 31, 1999 ffthe entire Trans- action has not been consummated by that date Page 3 PASSED AND APPROVED thls the"~" '~ ?~..,,j)/i~.~ day oft~tl~ ,/~2.~,~_, 1999 JAC~ ATTESTI JENNIFER WALTERS, CITY SECRETARY /J APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY ACCEPTANCE By the mgnature hereunder, Vulcan Cable, Inc, Vulcan Cable II, Inc, Charter Commumcatlons, Inc, and Charter Communications Holdings, L L C, the transferee and grantee, hereby represent that the officers s, gnmg below are fully authonzed to bind the under- mgned co~poratlons, and their mgnatures hereon constitute an acceptance and the unders, gned bumness ent~t, es' agreement to fully comply and abide by the terms and conditions of tlus Ordi- nance, Orthnance Nos 88-189 and 95-191 as amended hereby, the attached Acceptance Agree- ment and Pole Lease Agreement, the prowmons of Chapter 8 of the Code of Ordinances of the City of Denton, Artmle XIII "Francluses" of the City Charter, and all other apphcable laws and regulations VULCAN CABLE, INC oushee Title nt gacratarv DateofExecutmn March 23~ 1999 Page 4 VULCAN CABLE II, INC BY, hee Dat¢ofExocutlon March 23, 1999 CHARTER COMMUNICATIONS, 1NC llum ?oushee V~¢a .......... & ...... Counse Law & Regulatory Affaxrs Date of Execution March 23: I qqq CHARTER COMMUNICATIONS HOLDINGS, INC T~tle M C leste Vossmeyer ....... Relatxons DateofExecut~on u~,-~h 93~ lq99 Page 5 EXHIBIT 1 DENTON ACCEPTANCE OF TERMS AND CONDITIONS TO TRANSFER OF CONTROL OF A CABLE TELEVISION SYSTEM AND FRANCHISE ("ACCEPTANCE AGREEMENT") dated as of.~,_~L, 1999 relates to a cable television This Acceptance Agreement franehme granted by the Caty of Denton ("Caty")'" z:A~J~tn Ordinance No 88-189, as amended by Ordanance No 95-191 and an Acceptance Agreement dated September 12, 1995 The foregoang Ordinances and the 1995 Acceptance Agreement are hereinafter referred to collectively as the "Franctuse" Marcus Cable Assocmtes, L L C, formerly Marcus Cable Assocmtes, L P, m the current grantee under the Franehme and m referred to herren as "Company" Company is a wholly owned submchary of Marcus Cable Operating Company, L L C Marcus Cable Operating Company, L L C m a wholly owned submdmry of Marcus Cable Company, L L C Marcus Cable Company, L L C ~s m turn wholly owned, directly or indirectly, by Marcus Cable Prope~es, Inc ("MCP") and Vulcan Cable, Inc, a Washington corporation ("Vulcan") MCP and Vulcan are wholly owned by Paul G Allen ("Allen") The follownng matters are the subject of this Acceptance Agreement · Vulcan will become the Manager of Marcus Cable Company, L L C pursuant to Farst Amendment to Operating Agreement dated August 25, 1998 · Allen has aeqmred 93 25% ownershap of Charter Communications, Inc, ("Charter"), a Delaware corporation that mdlreetly owns all of the Charter cable televlmon operating entrees Charter has been conducting the day-to-day operations of Company pursuant to a Management Consulting Agreement dated as of October 6, 1998 · Charter Commumeations Holdings, L L C ("CC Holdangs"), a Delaware hmated hablhty company, owns or wall own 100% of Marcus Cable Company, which wall continue to own 100% of Marcus Cable Operating Company, L L C, which m turn owns 100% of Company and 100% of all other Marcus cable televmlon operating entities CC Holdings will also have ~ndlrect 100% ownershap of all Charter cable telewmon operating entities · CC Holdings will be 100% owned d~rectly or ~nd~rectly by MCP, Vulcan, Charter and Vulcan Cable II, Inc ("Vulcan II"), a Washington corporation Allen owns 100% of Vulcan II m addition to h~s ownership of 100% of MCP and Vulcan and 93 25% of Charter Vulcan, Vulcan II, Charter, CC Holdings, MCP and Marcus Cable Associates, L L C make this agreement for the purpose of accepting an Ordinance of the Caty eonsenttng to the transfer of control of the franchise to Allen and the restructunng set forth above, ~nelud~ng management of Company by Charter The structure of ownership and control as ~t will exist after the transfer of control and the restmctunng is set forth in Exhibit A attached hereto The transfer of control of Company to Allen and the foregoing restmctunng, including Charter's management of Company, are referred to collectively herein as the Transaction 1 ~ The prormses, covenants, and conditions contained here~n Inure to the benefit of the City and are binding on MCP, Charter, Vulcan, Vulcan II, CC Holdings and Company 2 ~ CC Holdings, MCP, Charter and Vulcan acknowledge that the transfer of control and restmctunng are expressly subordinate to and will not affect the blnchng nature of the Franchise and the obhgatlons provided thereto, and that the consent of the City to the Transaction does not conmtute a wmver or release of any rights of the C~ty 3 Reliance Company, CC Holdings, MCP, Charter and Vulcan acknowledge that the City has consented to the Transaction in reliance upon the representatmns, documents and information prowded by Company, Charter and Vulcan, all of wluch are incorporated herein by reference 4 ~ Company will comply w~th the customer servme and consumer protection prov~mons set forth ~n Exhlba B 5 Prior Defaults Company, MCP, Charter, Vulcan and CC Holdings agree that they will not contend d~rectly or indirectly that any defaults or failures to comply w~th the franchise or other matters set forth in 47 USC § 546(c)(1)(A) (Commumcatmns Act of 1934, Sectton 626(c)(1)(A) (eollectxvely "Defaults") occumng prior to the Transaction are wmved, ~ncludlng but not hmlted to the following 5 1 The ability of the C~ty to obtain redress for prior Defaults, such as recovery of any underpayment of franchise fees or obtain refunds for periods prior to the Transaction 5 2 The ability of the City to enforce in the future any Franchise terms which may not have been enforced ~n the past 5 3 The ability of the City tO consider Defaults occumng prior to the Transaction m connection w~th any renewal or nonrenewal of the Franchise 5 4 This Section 5 is without prejudice to Company, MCP, Vulcan or CC Holdings contending that the default or failure to comply has been cured 6 Valldl[y of Franchise. Charter, MCP, CC Hol&ngs and Vulcan accept and agree to be bound by the terms and conditions of the City Charter, the Franchise and all ordinances applicable to Company's operations after the transfer Charter, MCP, CC Holdings, Vulcan and Company do not contend that any provision of the Franchise is unlawful or unenforceable, nor are they aware of any ordinance or any provision in the City Charter which they contend is unlawful or unenforceable The City acknowledges that the Franchise is in full force and effect 7 Franchise for Cable Only Company, MCP, CC Holdings, Charter and Vulcan acknowledge that the Franchise is granted solely for the provision of Cable Service including services described in Section 12 8 Service and Equipment for Public Facilities 8 1 Following the transfer of control, Charter, MCP, CC Holdings and Vulcan will cause Company to continue to provide the same installations and service without charge to public facilities being provided at the present time, but in all events no less than is required by the Franchise, this Acceptance Agreement or any applicable city ordinance 3 9. Access to Records The records and reports of the franchise grantee which are to be submitted to the City or otherwise made available for the City (such as for inspection by the City) pursuant to the Franchise or other ordinance or charter provisions of the City shall include records maintained by Charter, Vulcan, CC Holdings and their Affiliates to the extent necessary for the City to ahscharge its responslblht~es under the Franchise, FCC rules or state or local law, or to insure compliance w~th the Franchise or this Acceptance Agreement 10 Transaction Transparent to Rates CC Hol&ngs, Charter, MCP, Company and Vulcan acknowledge that unless expressly provided elsewhere in this Acceptance Agreement (a) the transfer, the consent process, the City's action grantmg consent, and this Acceptance Agreement and the terms hereof (other than Seetmn 18 2 ) do not provide any basis for increasing the amounts paid by subscribers through cost pass-through as so-called "external costs" or as new franchise requirements, (b) the consent process, action, and this Acceptance Agreement do not provide any basis for increasing the amounts paid by subscribers m any other manner, and (c) Company will not separately itemize costs or francluse requirements ansmg from this Acceptance Agreement on subscriber bills 11 Revlew of Purchase Price Section 8-62(0 of the Cable Television Ordinance contains provisions relating to review by the City of the price paid for the cable system and the impact of that price on future rotes In light of the present hmitat~ons and uncertain future of rate regulation, the parties have agreed not to address the ~nterpretatton, apphcatton and enforceability of these provisions in the consent process All such matters may be raised and decided m the future MCP, Charter and Vulcan agree that the City has not wmved any claims or rights it may have m that connection by fathng to pursue them in the transfer approval process and the City acknowledges that MCP, Charter and Vulcan have not wmved any rights in that connection 12 Cob|e Modem. High-Speed Data and Internet Servmes The Federal Telecommumcat~ons Act of 1996 modified the defimt~on of"cable services" in the Federal Cable Act (Title VI of the Communications Act of 1934, 47 USC Section 115 and following) The change addresses cable companies' ability to provide Enhanced, Advanced Cable Services over a Cable System as a cable service (and not as a telephone service, with accompanying telephone regulation ) The Franchise predates and does not reflect this 4 legtslat~ve change Company tntends to provtde Enhanced, Advanced Cable Servtces where econommally feasible 12 1 To remove any uncertatnty on Company' authority to provtde Enhanced, Advanced Cable Serwces the pames agree that Company has the authority to provide Enhanced, Advanced Cable Services under the Franchise and that the revenues therefrom shall be included tn gross revenues for the purpose of computing and paying cable franchtse fees 12 2 If Company provides any Enhanced, Advanced Cable Servmes to restdent~al subscribers wtthtn the City, then without any mitlal or ongoing charge tt shall provtde the Ctty cable modems and assocmted access to the Interact wtth a speed of up to 250 kbs Such modems and servme shall be promded to each C~ty hbrary located wtth~n Ctty and to three (3) additional locations speeffied by the C~ty in City buildings 13 Sy~[em Up_made. If Company has scheduled an upgrade of Company's facfltt~es tn the C~ty that has not yet been completed, the esttmated completion date ~s shown on Schedule 13 Company, CC Holdings, MCP, Charter and Vulcan agree that the Transaction will not adversely affect the scope or t~mIng of the upgrade 14 Continm_ty of Manaeement Company, CC Holchngs, MCP, Charter and Vulcan acknowledge that (a) at the time of submission of the Form 394 subscribers restdlng tn the City were expenenmng serious and on-going defietenetes tn servtee, (b) the provtstons of Exhtb~t B are tn response to these problems, and (c) the Ctty ~s approving the Transaction and the transfer of control m reliance on the actions taken by Allen and Charter in the interim to improve customer servtce and tn the expectation of contlnmty of Charter's management to assure that the problems will not recur Allen and Charter have informed the C~ty that they intend to keep the present Charter management team m place Until the Transaction is completed, Charter will continue to manage Company and the cable television system in the C~ty 15 Frequency of Rate Increases Company will not file a submission to ~ncrease 1ts rates for basic cable servme, eqmpment, or servme calls regulated by the C~ty more than once in each calendar year 16 Other Matters 16 1 Conflmt In the event of any conflmt between the terms of thas Acceptance Agreement and the Franchase or any Caty Ordanance, that promsaon whmh provades the greatest benefit to the Caty, an the opmaon of the Caty Council, shall prevail 16 2 Wmvers The partaes hereto wall joan the Caty an obtalmng from the FCC any wmvers or other rehef from tame to tame necessary to effectuate the prowsaons of thru Acceptance Agreement 16 3 Null and Voad At the Clty's optaon thas Acceptance Agreement and the C~ty's consent to the Transaction shall become null and voad an e~ther of the following mrcumstances Such optaon may be exercased prior to completaon of the Transactaon by the Caty gavang written notme to Company and Vulcan at the addresses designated m the Form 394 16 3 1 If the transfer of control of the Franchise or any other part of the Transaction as not completed on or before October 31, 1999 16 3 2 If the Management Consultang Agreement dated as of October 6, 1998 pursuant to whmh Charter ~s dlrectang the management of Company as termanated or ff Charter's control over Company's opemtaons as materially reduced 16 4 Costs Vulcan wall cause the Caty to be reimbursed for its reasonable expenses m connection wath the consent process ~nctudang pubhcatlon costs and fees of consultants and attorneys Such reimbursement shall not exceed the aggregate amount of $275,000 plus publlcataon costs for the Caty and the other munlcapalmes whach have acted wath the Caty an connection wath the consent process Reimbursement of costs and fees under th~s provasaon shall not be considered a payment of franehase fees, shall not be passed through to subscribers and is subject to the provas~ons of Section l0 16 5 Venue and Chmce of Law Venue of any stat under or arising out of th~s Acceptance Agreement shall be exclusavely ~n Denton County, 6 Texas or in the Umted States District Court for the Northern District of Texas Th~s Acceptance Agreement shall be construed m accordance w~th the laws of the State of Texas 16 6 Treatment of Llqmdated Damages Company, CC Holdings, MCP and Vulcan acknowledge and agree that hquldated damages under this Acceptance Agreement (including its Exhibits) and the Francfuse do not constitute francfuse fees, do not reduce the amounts otherwise payable as franchise fees, and wll not be passed through to subscribers 167 Y2KComphanee By September 30,1999 Company will become Y2K eomphant and will establish and prowde the City w~th a copy of a contingency plan to prevent d~sruption of mission critical components including customer service matters 16 8 W~re Maintenance Fee Company has announced ~ts Intention to d~scontmue the 99¢ optional wire maintenance fee program that Company first implemented in 1998 ("Current Fee") and offer m its place an optional program covenng maintenance of both telephone and cable wires for a monthly fee of approximately 99¢ ("New Program") 16 8 1 Ifth~s occurs dunng or before March 1999 (a) the C~ty will not seek to obtam refunds of amounts collected under the Current Fee, (b) if the City has adopted a Rate Order w~th respect to the Current Fee, the Rate Order will be deemed to be withdrawn, and (c) ~f there ~s a proceeding pending before the FCC w~th respect to such a Rate Order Company and the City will jointly request termination of the proceeding 16 8 2 The City will not challenge the New Program dunng 1999 if the monthly charge remains under $1 00 16 9 Rate Orders Unless a final order of the FCC (affirmed on appeal ~f an appeal ~s taken) determines that franchise authority rate orders are automatically stayed by the filing of an appeal to the FCC, Company will ~mplement each rate order adopted by the City unless and until Company obtains an order of the FCC or a court of competent jurisdiction staying the effectiveness of the rate order Company will 7 reimburse all attorneys fees and other expenses ~ncurred by the City as a result of a violation oftfus Section 16 9 16 10 Franchise Fee Calculation Company will comply w~th the dems~on of the United States Court of Appeals for the Fffih Clmmt in City of Dallas v FCC, 118 F3d 393 (1997) 16 10 1 Company will pay the add~tional franchise fees due under the Fifth Clrcmt demsion w~th ~nterest and w~thout pass-through to subscribers for the time period from September 1997 until Company ~mplemented the decision 16 10 2 Company will also pay the additmnal franchise fees due under the Fifth Circuit decision for the period of time from the FCC's dec~slon m Untted Arttsts Cable of Baltimore, l0 FCC Red 7250 (1995) to September 1997 together w~th ~nterest thereon Company may pass through payments under this Section 16 102 to subscribers (other than interest) ~f and to the extent Company reduced mrs charges to subscribers as a result of the FCC's decision 17 Institutional Network Company shall provide, construct, operate and maintam an Inst~tutmnal Network (excludmng coders/decoders, ~nterface and other tenmnal equipment which will be supphed by Users) that will prowde the C~ty and other I-NET Users w~th Institutional Network Servmes The I- NET shall be as set forth below Unless the City agrees otherwise ~n writing, the I-NET, including the individual fiber optic fibers constituting all or a pomon of it, shall be owned and maintained by Company but provided for the exclusive use of the City and other I-NET Users and shall be provided w~thout any charge to the City or I-NET Users 17 1 This Section Is left blank 17 2 Company shall install and terminate additional fiber optm pmrs ("Incremental I-NET Fiber") in Company's future new and replacement fiber optm installations for use as an I-NET as follows 8 17 2 1 City will inform Company in writing from time to time of the additional faclhtIes ~t would hke to have served by an I-NET Company will use such information ~n ItS plans for future fiber installations, where (for example) one routtng will pass a facthty City would like to have served and another (of comparable cost) would not 17 2 2 By January 31 of each year Company will provide Clty wlth lts conceptual plans for new and replacement fiber optm construction for that calendar year 17 2 3 Company will also provide City from t~me to tlme dunng the year w~th written nottce of conceptual plans for any additional fiber optic construction dunng that year (or January of the following year) Such notice shall be provided as soon as ~s feasthle 17 2 4 Upon written request by City, Company will provide City with a conceptual cost eremite (and other Information City may reasonably require) of lnstalhng Incremental I-Net Fiber along all or a port,on of the routes that are a part of such conceptual plans Such estimates shall be prowded as soon as possible after request by City in order that C~ty may have t~me to obtain approval (such as from ~ts legislative body) to install such Incremental I-Net F~ber 17 2 5 As to any route where C~ty has requested a conceptual cost estimate, Company shall prowde C~ty w~th the final cost of mstalhng Incremental I-Net F~ber (and such other ~nformat~on as C~ty may reasonably request) as soon as Company's design of the fiber for such route ~s reasonably complete C~ty will have 30 days after receipt of the final cost figure to not~fy Company to ~nstall Incremental I-NET Fiber 17 2 6 The cost of ~nstalhng Incremental I-NET F~ber shall be computed on an mcremental bas~s, meamng the d~fference ~n cost to Company of constructing and ~nstalhng fiber on a g~ven route (a) w~th, and (b) w~thout, the Incremental I-NET F~ber 9 17 2 7 Company shall be reimbursed by C~ty for the cost of~nstalhng I-NET fibers under th~s Section 17 2 computed as set forth ~n Section 17 2 6 17 3 I-NET Mmntenance Company shall prowde I-NET Users w~th a rehable level of servme, repmr and mmntenance that at a m~mmum, meets the following performance standards 17 3 1 Company shall maintain a mtmmum of 99 5 percent service avmlabthty to I-NET Users measured over a period of one year 17 3 2 Company shall respond to repmr requests from an I-NET User for c~rcmts ~dentffied as cntmal pursuant to Section 17 3 4 w~tlun 2 (two) hours of the request Company shall respond to other repmr requests w~th~n four (4) hours of the request 17 3 3 Company shall prowde ongoing mmntenance at ~ts d~scret~on, as ~t deems necessary Company shall provide at least one week advance notme to any affected I-NET User of any mmntenance requmng temporary ~ntermption of services, except ~n emergency s~tuat~ons 1734 Company and the C~ty shall develop a mutually agreeable priority hstmg of cntmal c~rcmts and their terminal locations When not~fymg Company of service complaints, an I-NET User shall ~dent~fy cntmal etrcmts requmng priority repmr Company shall escalate repmr of cntmal c~rcmts to the extent reasonable under the c~rcumstanees 174 Defimtmns 1741 I~lst~tut~onal Network or I-NET means the fiber optic commumcat~ons network described m Section 17 and Schedule 17 to be constructed and operated by Company for the prows~on to I-NET Users (but not Cable Servme subscnbers) of Inst~tutmnal Network Servmes 1742 Instttuttonal Network Servmes means the prows~on of usable bandwidth capacity to I-NET Users through fiber optic hnes for 10 applications including but not hmlted to two-way de&cated vmee, data, video and telephony channels connecting and interconnecting facilities owned, leased or used by the City, schools, counties, road commissions or other units of state or local government Other apphcat~ons include but are not limited to computerized traffic control systems for coordinated traffic control on an area-wide basis, Supervisory Control and Data Acquisition (SCADA) systems for municipally owned water, sewer, gas and electric systems (including street lighting systems), lnterconnect~on of facilities serving pohce, fire and other public safety systems, wdeo arrmgnment factht~es for local courts, lntemonnectlon of government buildings for the two or one-way interchange of video signals, and local area networks or w~de-area networks connecting governmental buildings, such as for GIS (Geographical informational Systems) purposes 17 4 3 I-NET User means and is hm~ted to the C~ty and any school or unit of state or local government designated by the C~ty to receive Institutional Network Services under this Acceptance Agreement 18 HDTV Broadcast and cable channels are likely to convert in whole or in part to an HDTV (high defimt~on television) format w~th~n the next few years, w~th channels likely being delivered in both HDTV and conventional analog formats dunng a transition period The following provisions address the ablhty of the City to acquire additional PEG Channels such that one or more Users may have their signals simultaneously delivered by the Cable System in both an HDTV and conventtonal analog 6 .MHz NTSC format for the transition penod, and prowde funds for Users to convert to an HDTV format 18 1 Reports. Company shall provide quarterly reports to City on its plans and progress for HDTV conversion, including the number of channels to be converted, date, equipment changes, formats to be used and other Information reasonably necessary for the City to be able to plan an appropriate and potentially concurrent conversion of PEG Channels and facilities to HDTV format 18 2 Grant After the date when Company provides at least fifty (50) channels in one or mom of several high definition television (or 11 successor) formats, as such formats may from time to time be adopted or in effect ("HDTV Format"), then upon request from City Company shall provide a Capital Famhtles grant to City sufficient for Users to convert all their facilities and equipment (including but not limited to studios, vans, video, andlo, lighting, control, storage and editing equipment) to the HDTV Format selected by City but with the amount of such grant not to exceed 30¢ per customer per month when amortized over Company's subscnbers as of the end of the calendar quarter preceding the date when the grant is made, using straight line amortizat~on wnthout interest for the lesser of five (5) years or the remaining term of the Franchise City shall allocate the grant among Users for such purpose as City deems is in the public interest Company shall mochfy the cable system whereby Company receives PEG signals from each User (for redistribution on its Cable System) so as to be capable of receiving and accepting the User's signals City shall co- ordinate with Company to ensure that the HDTV Format selected by City is compatible w~th the format employed by Company 18 3 Temporary Addmonal PEG Channels After the date when Company provides at least fifty (50) channels in HDTV Format, City may from time to time request, and Company shall provide, one additional PEG Channel so as to allow, to the extent deemed appropriate by City, PEG Channel slmulcastmg in both 6 MHz analog NTSC format and in an HDTV Format Company need no longer provide the additional PEG Channel described m the preceding sentence when Company no longer provides any channel of programming on the Cable System in 6 MHz NTSC analog format 18 4 Allocation of PEG Channels As of the effective date of this Acceptance Agreement City may allocate and reallocate PEG Channels as follows City may at any time on SlX (6) months notice to Company allocate or reallocate the usage of the PEG Channels among and between different uses and Users This expressly may include City removing a User or PEG Channel, replacing a User or PEG Channel, requmng several different persons to share or jointly use a given PEG Channel or conversely allowing one or more persons currently shanng such a channel to have a channel on which they are the sole User 12 19 Leased Access and PEG Channels The need for a PEG Channel can be removed by Company provtdlng the User designated by C~ty of such current or prospective PEG Channel w~th an otherwise ~dent~cal leased access channel, so long as the leased access rate for such User ~s One Dollar ($1 00) per year In the event the precedmg sentence ~s exermsed ~t shall be applied first to educattonal channels and then to pubhc channels If apphed to such channels the channel number on whmh they are earned shall not be changed and such channels shall be included m the basra tier of servme and shall be hsted in Company's program grade or comparable hstlng with an appropriate description, such as "C~ty of Fort Worth Channel" or "Fort Worth Public Schools Channel" The need for a PEG Channel is removed only so long as the User in question m fact is prowded w~th such leased access channel 20 Transfer Ctty consent m advance shall be reqmred for a transfer of control of Company, whmh shall include, but is not hm~ted to, any of the following 20 1 Any change in hm~ted parmersh~p interests, non-managing hm~ted habthty company interests, or non voting stock representing thirty pement or more of the equity interests m the entity m question 20 2 Any option, right of conversion or s~mflar right to acquire ~nterasts const~tuttng control w~thout substantial additional consideration (such as compared to consideration premously prowded) 20 3 Any change m the effective control of Company ~ncludmg that described ~n 47 C F R § 76 501 and following (including the notes thereto but excluding footnote 2f) as in effect on the date of this Acceptance Agreement 20 4 A transfer by Paul G Allen of any interest ~n MCP, Vulcan, Vulcan II or Charter other than to an entity at least 80% owned by him that assumes the guarantees provided in Section 23 20 5 Any transfer or transfers such that the direct and ~nd~rect ownership of Allen in CC Holdings ~s less than 70% 20 6 Any acqmslt~on of more than 10% ownership of CC Holdings by a person or entity (or a group of persons or entlt~es acting together) other than Allen or ent~t~es wholly or more than 80% owned by Allen 13 21 Special Provision Company will implement the refund plan in response to FCC Order 0A97-2441 upon approval of the plan by the FCC and without filing a petition for reconsideration or other delaying action 22 Defimtlorls The following definitions shall apply for the purpose of this Acceptance Agreement and its Exhibits 22 1 Affiliate means any individual, partnership, association, joint stock company, hmlted liability company, trust, corporation, or other person or entity who owns or controls, or is owned or controlled by, or is under common ownership or control w~th the entity in question 22 2 Capital Faclht~es means PEG Channel and I-NET related facilities and equipment including fiber lines, studios, production facilities, vans and cameras or other property having a useful life of more than one year, as well as any expenditures wtuch increase or add to the value of the facilities or equipment, adapt the facilities or equipment to new or different uses, or maintain, restore, extend or prolong the useful life of such facflmes or eqmpment 22 3 Cable Service means 22 3 1 The one-way transmission to all subscnbers of (1) Video Programming, or (ii) other programming services, by which is meant information which Company makes available to all subscribers generally, such as digital cable radio service, and 22 3 2 Subscriber interaction, if any, including but not limited to that which ~s used for the selection or use of such Video Programmmg or other programming services, selecting from various on-screen options, use of Enhanced, Advanced Cable Services, game channels, interactive services, downloading programs or data access, or ordenng merchandise, and 22 3 3 Instututional Network Services 22 4 Cable System or System means a faclhty consisting of a set of closed transmismon paths and associated signal generation, reception, and 14 control equipment that ~s designed to provide Cable Services to multiple subscribers within the franchised area, but such term does not include 0) a facility that serves only to re-transmit the television signals of one or more television broadcast stations, (n) a facility that serves subscribers without using any public right of way, (m) a facility of a common carrier which Is subject, in whole or in part, to the prows~ons of Title II of the Communications Act of 1934, as amended, except that such a facility shall be considered a Cable System (other than for purposes of Section 62 l(c) of such Ac0 to the extent such facility is used in the transmission of video programming chrectly to subscribers, unless the extent of such use is solely to prowde interactive on-demand services, 0v) an open video system that complies with Section 653 of Title VI of the Communications Act of 1934, as amended, or (v) any facfllt~es of any electric utility used solely for operating its electric utthty system 22 5 Enhanced. Advanced Cable Services means enhanced services, information sermces, Interact protocol (IP) telephony, high speed data service, Internet access and Intemet service (such as that of an Internet service provider) 22 6 FCC means the Federal Communications Commission 22 7 I-NET User has the meaning set forth in Section 17 4 3 22 8 Institut~onal Network or I-NET has the meaning set forth in Section 1741 22 9 Institutional Network Serwces has the meaning set forth in Section 1742 22 10 PEG Chan~lels means the public channels, educational channels and government channels prowded by Company on the cable system under the Franchise, this Acceptance Agreement, or applicable ordinance, and shall include leased access channels provided pursuant to Section 19 herein 22 11 User means a person authorized to operate or use a PEG Channel (or a leased access channel promded in heu of a PEG Channel under Section 15 19) or the I-NET, and shall ~nclude C~ty If several persons share the operation of a PEG Channel each person shall be a separate User 22 12 ~ means programming prowded by, or generally considered comparable to programming promded by, a telemmon broadcast station 23 Guarantee Marcus Cable Propemes, Inc, Vulcan Cable, Inc, Vulcan Cable II, Inc, Charter Commumcat~ons, Inc and Charter Communications Holchngs, L L C hereby jointly and severally unconditionally guarantee performance of the obhgat~ons of the Franchise and of thru Acceptance Agreement by Company Vulca~)b]e, In~,, A iQ? m ~ BY 4~u~x~2~F o u s~e e Assistant Secretary [-~Tr/udl ~Mg}Collum Foushee Assistant Secretary Marcu~ Cable Assocmtes,,L ~ C M. Celeste Vossmeyer // Vice Presldent-GovernmenF'Relatlons Marcu~ Cable Properties, ~nc,) M Celeste Vossmeyer Vice Pres~dent-Governme~/Relatlons 16 Law & Regulatory Affairs M Celeste Vossmeyer U V~ce President-Government Relations l? EXHIBIT B TO ACCEPTANCE AGREEMENT CUSTOMER SERVICE AND CONSUMER PROTECTION 1. Customer Servme Standards Company shall at all t~mes comply w~th the more stnngent of the customer servme and consumer protection provisions of th~s Exhibit B, the Franctuse and the FCC This reqmrement is an ad&t~on to the specific prowslons of subsequent secttons set forth below 1 1 Company shall continue to comply w~th the National Cable Telews~on Assocmt~on's On-T~me Customer Service Guarantee, a copy of whmh ~s attached as Exhibit B 1 The guarantee prom~ses on-ttme servme calls or the customer receives $20 00, and on-t~me ~nstallat~on calls or the customer receives a free installation The $20 00 may be ~n the form of a cre&t 1 2 Company may prowde the Customer Ball of R~ghts of Charter to ~ts subscribers ~n the C~ty 2 Ct_ty Momtonng In addition to free outlets, free cable sermce or servmes otherwise mqmred by the Franchise, Company shall prowde one servme outlet (whtch shall be at the Cable Administrator's office at C~ty Hall, unless otherwise specffied by C~ty) that shall receive w~thout charge all programming (and any other Cable Servmes) provtded by Company, ~nclu&ng servmes of a premmm, pay per wew or other nature Such servme shall be promded ~n such a manner that C~ty may momtor the programming and use of the cable system for comphance with the Franchise, th~s Acceptance Agreement, FCC techmcal standards, and apphcable law The services prowded pursuant to th~s Sectton 2 shall be m a secure office location and not ~n a location open to pubhc wewmg 3 Scrambhng/Bloclan~ Upon completion of the planned system upgrade to 860 MHz, Company shall at all t~mes scramble both the audio and wdeo port~ons of all channels with predomlnately adult oriented programming 3 1 Upon request by a subscriber, Company shall entirely block such subscriber from receiving both the audio and video pomon of any channel with predominantly adult oriented programmmg w~th devines 19 such as a notch filter which prevent the frequencies contalmng a specific channel or channels from being transmitted into the subscriber's premises 4 Pay Per V~ew Subscnbers shall be given the options of (a) not hawng pay per view or per program servme avmlable at all or (b) only having such service provided upon the subscriber providing a security number selected by an adult representative of the subscriber 5 Notification Company shall prowde written information on at least each of the following matters (a) at the time of~nstallatton or relnstallatlon of service, (b) annually to all subscribers, and (c) at any time upon request of a subscriber or the C~ty The mfonnat~on shall be dated with the pnnting, revmton, or effective date 5 1 Products and services offered 5 2 Prices (rates) and options for Cable Services and conditions of subscription to Cable Servme Prices shall mclude those for programming, eqmpment rental, program guides, installation, disconnection, processing charges for late payment and other fees charged by Company 5 3 Installation and service maintenance pohcles 5 4 Instructions on how to use Cable Services, including procedures and opttons for pay per view, premium clmnnels and connectuon to a VCR 5 5 Channel positions of programming camed on the cable system, meludlng a hstmg specific to the City showing the channel names and numbers actually avmlable to subscribers in the City 5 6 Bflhng and complmnt procedures with a notme for the subscriber to lnlt~ally contact Company with complmnts and questions 5 7 Applicable privacy requirements as set forth in the Franchise or provided for by law 20 5 8 The avmlabfllty of lockout devices and the ability to have a channel entirely blocked or trapped (Section 3 1) 5 9 The refunds and free service available for violations of Sections 10 and 12 and how to obtain same 5 10 The procedure for resolving signal quality problems set forth in Section 20 2 6 NoBce of Changes Subscribers and the City shall be notffied of any changes m rates, Cable Services or channel positions as soon as posmble through announcements on the cable system or in writing Company wdl notify City in advance of notifying subscribers and will make every effort to notify City forth-five (45) days in advance of a change Unless a longer time period is required by apphcable law or regulation, notice must be given to subscribers a mlmmum of thirty (30) days in advance of such changes ~f the change is w~thm the control of Company and as soon as possible if not within the control of Company In adchtton, Company shall notify subscribers and the City tlurty (30) days m advance of any sigmficant changes in the matters covered by the preceding Section 5 Notifications provided pursuant to this Section shall be dated with the pnntlng, remslon or effective date 7 Telephone Service Standards 7 1 Company shall have a local or toll-free telephone number avmlable for use by subscnbers toll-free twenty-four (24) hours per day, seven (7) days per week 7 2 The local or toll-free numbers shall be listed, with appropriate explanations, ~n the directory published by each local telephone company and m any slgmficant directories pubhshed by others 7 3 Trained Company Representatives shall be available to respond to subscriber telephone lnqumas twenty-four (24) hours per day, seven (7) days per week 7 3 1 As to video service matters, the term "Trained Company Representatives" shall mean employees of Company who have the authority and capabdlty while spealang w~th a subscriber to, 21 among other th~ngs, answer billing questions, adjust bills, and schedule service and installation calls 7 3 2 This Section 7 3 will take effect October 1, 1999 7 4 Under Normal Operating Conditions, telephone answer time by a Trained Company Representative, including wmt t~me, shall not exceed tlurty (30) seconds from when the connectton IS made If the call needs to be transferred, the ttme to complete the transfer time shall not exceed thirty (30) seconds These standards shall be met no less than ninety pement (90%) of the time under Normal Operating Conditions, measured on a quarterly basis 7 5 Under Normal Operating Condltuons, the subscriber shall receive a busy s~gnal less than three percent (3%) of the t~me, measured on a quarterly bas~s 8 Office/Home Dehvery-Plek Up 8 1 Company shall maintain a physical office within the City, which shall include a place where subscribers may pay their bills, pickup and return converter boxes and comparable items and receive reformation on Company and ItS servmes 8 1 1 The office shall be open at least from 8 AM to 5 PM Monday through Fnday plus an additional 8 hours in the evemng and/or on the weekend 9 ~ Under Normal Operating Conditions, installations located up to one hundred fifty (150) aerial feet from the existing distribution cable system shall be performed within seven (7) bus~ness days after an order has been placed no less than ninety-five percent (95%) of the t~me, measured on a quarterly basis l0 Installations/Service Calls The following shall apply to subscribers (current or new) requesting installations or service 22 10 1 Installations and servme calls shall be avmlable at a mlmmum from 8 AM to 7 PM Monday through Saturday Company shall at the subscriber's optton e~ther (1) schedule the subscriber to be the first call of the day or last call of the day on a first come, first served bas~s, (2) schedule the appointment for a date certmn on a "call to meet" bas~s where as the servme techmcmn fimshes h~s/her prior task, the techmc~an calls the subscriber and arranges to meet the subscriber shortly thereafter, or (3) establish an appointment w~ndow of no more than three (3) hours w~th the subscriber (or adult representative of the subscriber) or another appointment w~ndow mutually agreed upon between the subscriber and Company 10 2 Company shall respond to the request for servme ~n accordance w~th the option selected by the subscriber 10 3 Company shall not cancel an appointment w~th a subscriber after 5 PM on the business day prior to the scheduled appointment 10 4 If Company's techmcmn ~s mnmng late for an appointment w~th a subscriber and will not be able to keep the appointment as scheduled, the subscriber shall promptly be contacted The appointment shall be rescheduled, as necessary, at a t~me whmh ~s convenient for the subscriber 10 5 In the event access to the subscriber's premises ~s not made available to Company's techmctan when the techmman amves dunng the estabhshed appointment wtndow, the techmclan shall leave written notfficat~on stating the t~me of amval and requesting that Company be contacted again to estabhsh a new appointment w~ndow 10 6 Notwithstanding the foregoing, ~f Company's techmcmn or service representative telephones the subscriber dunng or prior to the appointment window and is advised that the techmman will not be g~ven access to the subscriber's premises dunng the appointment window, then the techmc~an shall not be obhged to travel to the subscriber's premises or to leave the written notfficat~on referred to above, and the burden shall agmn be upon the subscriber (or adult representative of the subscriber) to contact Company to arrange for a new appointment 10 7 Except as otherwise prowded above, Company shall be deemed to have responded to a serwce or ~nstallat~on request under the prows~ons of 23 this section when a technician arrives at the service location or is advised by telephone no access will be given l0 8 Company's service technician or service representative shall take adequate time on each service call to address or correct the problem in question l0 9 In the event that Company ceases to provide the NCTA On-Time Customer Service Guarantee (Exhibit B1) a violation by Company of the provisions of this Section l0 shall automatically entitle the subscrlbeI to one month of free basic service and (If currently purchased by the subscriber) one month of free cable programming service (as defined in 47 C F R § 76 901) l0 10 Under Normal Operating Conditions, Company shall meet the standards of Section l0 1 through l0 3 no less than ninety-five percent (95%) of the time, measured on a quarterly basis 11 ~ No charge shall be made to the subscriber for any service call relating to Company owned and Company maintained equipment after the lmtial mstallation of Cable Service unless the problem g~wng rise to the service request can be demonstrated by Company to have been 11 1 Caused by neghgence Ol mahc~ous destruction of cable equipment by the subscriber, or 11 2 A problem estabhshed as having been non-cable in origin 12 Service Interruptions 12 1 Under Normal Operating Conditions, Company shall meet the standards of Sections 12 2 and 12 4 no less than ninety-five percent (95%) of the time measured on a quarterly bas~s 12 2 Under Normal Operating Condlt~ons, Company shall beg~n worlang on a Service Interruption promptly and in no event later than twenty-four (24) hours after the ~ntermptlon becomes known to Company 12 3 "Service Interruption" means the loss of picture or sound on one or more cable channels, affecting one or more subscribers 24 12 4 Under Normal Operating Conditions, Company shall beg~n worlang on subscriber complaints mvolwng ~mpalrment or degradation of signal quahty (other than a Serwce Interruption) promptly and m no event later than the next bus~ness day after the problem becomes known to Company 12 5 Company shall be deemed to have begun work under the prows~ons of th~s section when a techmclan amves at the servme location 12 6 Company shall provide affected subscnbers, upon request by the Ctty or the subscnber, w~th one day's free service (equivalent to the servme they were rece~wng at the t~me of the interruption) for each day or port~on thereof of Sermce Interruption 13 ~ Company shall mmntmn a written log, or an equivalent stored m computer memory and capable of access and reproduction m pnnted form, of a random samphng of all cable-related customer Complmnts w~thm the City that are referred to Company's Customer Care Group Such log shall be in form and substance acceptable to the C~ty and at mm~mum hst the date and t~me of each such Complaint, ~dentffy the customer to the extent allowed by law, and describe the nature of the Complaint and when and what actions were taken by Company ~n response thereto The log shall be organized by City The log shall be kept at Company's office m or near the C~ty for a period of at least two (2) years and shall be available for inspection during regular bus~ness hours by the City upon request 14 Bills Company shall comply with the following on Cable Servme bflhng 14 1 Bills shall be issued monthly to each subscriber with a balance due or change of service 14 2 Bills shall be clear, concise and understandable Bills shall be fully itemized, w~th ~temlzat~ons including, but not limited to, basra servme, cable programming service, premium servme charges and equipment charges Bills shall also clearly dehneate all actlwty dunng the bflhng period, including optaonal charges, rebates, credits, and late charges 14 3 Each bill shall prominently display Company's local or toll-free telephone numbers available for use by subscribers If a bill has more than one pomon (for example, one port~on that is kept by the customer and one port~on that ~s sent to Company) the numbers shall prormnently 25 appear on the front side of the pomon of the bill retmned by the customer 14 4 Company shall respond ~n writing to all written complmnts from subscribers regarding bllhng matters w~th~n thirty (30) days 14 5 Company shall not disconnect a subscriber for failure to pay legitimately contested charges during a bdhng d~spute However, dunng a billing d~spute Company may d~sconnect a subscriber for failure to pay charges that are not contested 14 6 The C~ty shall be g~ven thirty (30) days advance notme of any change ~n the format of balls 15 Refunds and Credtts Refund checks for Cable Servme shall be ~ssued promptly, but no later than etther 15 1 The subscriber's next bfihng cycle following resolution of the request or thirty (30) days, whmhever ~s earlier, or 15 2 If service ~s terminated, 30 days after return of eqmpment owned by Company or at the t~me of the next bilhng cycle, whmhever ~s ead~er 15 3 Credits for Cable Service shall be issued no later than the subscriber's next btllmg cycle following a determination that a credit ~s warranted 16 Late Payment for Cable Service 16 1 Each bill shall specify on ~ts face m a fashion emphasizing same (such as bold face type, underhned type or a larger font) "For payments received after [date] a $__ processing fee for late payment may be charged" 16 2 No processing fees for late payment, however denomxnated, shall be added to a subscriber's bdl less than twenty-one (21) calendar days after the mmhng of the bdl to the subscriber 16 3 No processing fees for late payment, however denominated, shall be added to a subscriber's bdl by reason of delay in payment other than those described m this Section 16 All such charges shall be separately stated on the subscriber's bdl and ~nclude the word "late" ~n the description of them 26 16 4 There have been negotiations in connection with this Acceptance Agreement regarding the appropriate amount of fees that may be charged for late payment The part,es have agreed to withdraw this ~ssue from consideration without prejudice to any clmms and defenses 17 1 Company shall not disconnect a subscriber for fatlure to pay until at least forty-five (45) days have elapsed after the due date for payment of the subscriber's bill and Company has provided at least ten (10) days written not, ce separate from the monthly btll to the subscriber prior to d~sconnectlon, spemfy~ng the effective date after whmh Cable Services are subject to thsconnectlon 17 2 Company may d~sconnect a subscriber at any t~me if Company ~n good froth beheves that the subscriber has tampered w~th or abused Company's eqmpment, that there is a s~gnal leakage problem (or other non-comphance with FCC rules or other standards which poses a risk to hves or property) on the subscriber's premises, or that the subscriber ~s or may be engaged in the theft of Cable Services 17 3 Company shall promptly disconnect any subscnber who so requests d~seonnect~on No period of notice prior to requested termination of servtee shall be required of subscribers by Company No charge shall be ~mposed upon the subscriber for or related to d~sconnectlon or for any Cable Service dehvered after the effective date of the disconnect request (unless there is a delay in returning Company equipment) If the subscriber fatls to specify an effective date for disconnection, the effective date shall be deemed to be the day following the date the thsconnect request is received by Company prowded that Company eqmpment has been returned 17 4 The term "d~sconnect" shall include customers who elect to cease receiving Cable Service from Company and to receive Cable Service or other multi-channel video service from another person or entity 18 Truth In AdverOmng Company's btlls, advert~mng and communications to its current or potential subscribers shall be truthful and shall not contain any false or mlsleadmg statement For the purposes of the preceding, a statement is false or mmleading If ~t contains an untrue statement of any material fact or omits to state a material fact necessary ~n order to make the statements made, 27 tn the hght of the ctrcumstances under whmh they were made, not m~sleadtng 19 Reports Company shall provide reports to the Ctty monthly (by the 15th busmess day of the following month) and quarterly (by the 15th bustness day of the follownng quarter) as follows 19 1 The reports shall include the followtng forms currently used by Charter or otherwise m form and substance acceptable to the C~ty, showang on a consistent basis, fmrly apphed, Company's comphance wtth customer servme standards 19 1 1 System Statasttcs Report, Exhlbat B2, whmh covers customer serv1ce matters 19 1 2 Monthly Report of Serwce Calls by Reason, Exhibit B3, whmh shall ~nclude an explanatton of the categories of reported reasons 19 1 3 Monthly Outage Summary by Franchise, Exhibit B4 19 1 4 Monthly Service Call Avadabthty Analys~s and Installation Call Avmlabd~ty Analysts, Exhibit B$ 19 1 5 Monthly Customer Call Sample Report, Exh]btt B6, both by C~ty and on an overall basis, showing the results of a random sampling of customer complaints referred to Company's Customer Care Group 19 1 6Monthly Call Center Performance Report, Exhibit B7 (excluding the 2% "assumed" adjustment) 19 2 Such reports shall show Company's performance excluding periods that were not Normal Operating Conditions ("Abnormal Operating Condtt~ons") and ~f Company contends any such condttlons occurred during the period tn questton, tt shall also describe the nature and extent of Abnormal Operating Conditions and show Company's performance both mcludmg and excluding the time periods Company contends such condlttons were tn effect 19 3 At the City's request Company wdl provide addtUonal lnformatton and extstmg reports reasonably related to the measurement and evaluatmn 28 of Company's compliance with the customer service requirements of the Franchise, the Acceptance Agreement, and this Exhibit B 194 Reports of installations/service calls (Section 10) and service interruptions (Section 12) shall report matters occumng w~thln the C~ty Telephone reports may be for a larger area than the City if Company can demonstrate that it is, In fact, representative of the phone service provided within the C~ty, such as where a call center receives calls from numerous municipalities with no abihty to distinguish between or g~ve preference to calls from one area or City over another 19 5 The City, by Itself or m combination with other municipalities, reserves the right to audit Company (or any Affiliate of Company) to verify the accuracy of the reports required under this Section 19 All records (including those of Affihates) reasonably necessary to conduct the audit shall be made available at a convement location m the Fort Worth area If the audit d~seloses performance that is three (3) percentage points worse than any of the standards of the referenced sectuons (such as comphanee 92% of the tlme versus 95% of the time) Company shall pay the City's costs in connection with the audit within thirty (30) days of submission of an invoice 20 FCC T~chmcal Standards The following shall apply to Company's implementation of and compliance wlth the roles and regulatuons relating to cable television technical standards for signal quality, currently set forth at 47 C F R § 76 601 and following, and subsequent amendments thereto 20 1 Company shall notify the City In advance of testing for compliance with FCC standards The City may have a representative present to observe such tests and may designate one location to be tested Company shall provide the City with a report of testing for compliance with such standards upon written request (but not more than twice a year) Such report to C~ty shall state, in pertinent part, that the person doing the testing has reviewed the applicable rules and regulations of the FCC, the industry standards and other materials referenced therein, and that such testing was done fairly and either shows full compliance with such rules and regulations or sets forth with specificity and in detail all areas of non-compliance, their actual or likely scope and causes, and Company's professional recommendation of the best corrective measures to lmmedmtely and permanently correct the non- comphance 29 20 2 Company shall establish the following procedure for resolving complaints from subscribers about the quality of the television signal delivered to them All complaints shall go initially to Company All matters not resolved by Company shall at Company's or the subscriber's option be referred to the City for it to resolve All matters not resolved by the City may be referred to the FCC for it to resolve 20 3 The City at its expense (no more than twice per year, barnng unusual mreumstances) upon thirty (30) days written notice to Company may test the cable system for compliance with the FCC technical standards Company shall cooperate in such tests and prowde access to the cable system Company shall reimburse the City for the full expense of any test which shows a material non-comphance with such standards 21 Liquidated Damages - Telephone Service, Installation, Service Calls Company acknowledges that non-comphance with the customer service standards identified above will harm subscribers and the City and the amounts of actual damages will be difficult or impossible to ascertain For the second calendar quarter of 1999 and thereafter, the City may therefore assess the following liquidated damages against Company for non-comphance with the customer servme standards set forth m Sections 7 3, 7 4, 7 5, 9, l0 l, l0 2, 10 3, 10 10, 12 1, 12 2 and 12 4 (measured on a quarterly basis) Company acknowledges that the llqmdated damages set forth below are a reasonable approximation of actual damages and that this Section 21 is intended to provide compensation and is not a penalty 21 1 Telephone Standards The damages for non-compliance with one or more of the standards in Sections 7 3, 7 4 and 7 5 dunng a calendar quarter are 21 1 1 First non-comphance $1 00 per subscriber 21 1 2 Second non-comphance within three (3) consecutive calendar quarters $2 00 per subscriber 21 1 3 Third non-comphance wlthln SlX (6) consecutive calendar quarters and (subJect to Section 21 4) each subsequent non- eomphanee $3 00 per subscriber 21 2 Service and Installation Standards The damages for non-comphance with one or more of the standards in Sections 9, l0 l, l0 2, 10 3, l0 10, 12 l, 12 2 and 12 4 dunng a calendar quarter are 3O 21 2 I F~rst non-compliance $1 O0 per subscriber 21 2 2 Second non-comphance within three (3) consecutive calendar quarters $2 O0 per subscriber 21 2 3 Third non-comphance within SlX (6) consecutive calendar quarters and (subject to Section 21 4) each subsequent non- comphanee $3 O0 per subscriber 21 3 M~mmums The l~qmdated damages for the first and each subsequent non-compliance under Section 21 1 or Section 21 2 shall be no less than $5,000, unless modified as provided an Section 21 4 21 4 Effect of Extended Periods of Comphanee If Company complies w~th all of the standards ~dentlfied in Sections 21 1 and 21 2 for e~ght consecutive calendar quarters, the damages for the first subsequent non- comphance w~th any of those standards will be the greater of 25¢ per subscriber or $3,000 21 4 1 Following such a non-comphance the damages provided in Sections 21 1 and 21 2 wall agmn be apphcable so that the next non-eomphance w~thm four (4) consecutive calendar quarters will be subject to Sections 21 1 2 and/or 21 2 2 21 5 An event ofnon-comphance will be taken ~nto account ~n determ~mng whether a later event of non-comphance is a second, third or subsequent event w~thout regard to whether C~ty has assessed hquldated damages or taken any other action with respect to the non- compliance 21 6 Company shall report the number of subscribers within the City on the last day of the quarter by the 15th busmess day of the following quarter 22 Llqmdated Danlages - Other 22 1 Liquidated damages ~n the amount set forth in Section 21 1 1 (but not less than the amount set forth m Section 21 3) may be assessed for failure to timely submit the quarterly reports reqmred by Section 19 31 22 2 Liquidated damages may be assessed for violation of the provision of Section 26 4 for submission of reports w~thln five (5) business days m the amount of $1,000 per day 23 Procedure for Assessment of L~quldated Damages The procedure for consideration and assessment of hquldated damages ~s as follows 23 1 Liqmdated damages shall be assessed by the City Manager or his or her designee 23 2 Company may obtain a review of the assessment by the Clty Council by making a written request w~thln ten (10) business days after receipt of notice m writing of the assessment and its basis 23 3 Company shall have an opportumty to be heard at a meetmg of the C~ty Council or by a person designated by the Council as a heanng officer prior to action being taken by the Council 23 4 The City Council may adopt additional procedures, including appointment ora City official or other person to act as a heanng officer The Council's decision may be based upon the record of proceedings conducted by the heanng officer or a proposal for decision submitted by the heanng officer 24 PaYment of LlO_uldated Damages Liquidated damages shall be paid on or before the tenth (10th) business day following assessment or, ff Company requests review by the City Council, on or before the tenth (10th) business day following ~ssuance of the Councxl's dec~slon 25 Ombudsman Company will provide a senior employee (at the Vice President or Director level) as chrector of government affairs and ombudsman reporting directly to a regional vice president of CC Holdings The director of government affairs will have responsibility for ~forklng voth the C~ty and other crees m the area to address problems that may arise under the Franchise and shall be Company's ombudsman for both the C~ty and subscribers Company will give the City an opportunity to comment on the detmled job description of the director of government affairs before the position is filled 26 C~_ty Lamson Company shall continue to provide problem solving halson services for the City of the type being provided to the City of Fort Worth by Charter's Customer Care Group in the Fall of 1998 The purpose of this service is to provide the City with direct access to supervisory level personnel 32 who can obtmn prompt action on customer servme problems referred by the C~ty to Company This service shall include at least the following 26 1 The personnel providing the sermce shall be located ~n Tarrant County 26 2 The personnel provldmg the service shall have sufficient authority and access to Company famhtles and personnel ~n order to ~nvest~gate and take appropriate remedlal action without delay 26 3 The C~ty shall be g~ven a specml direct phone number to use (which may also be used by other crees, but which will not be made available to the general pubhc) which will generally during normal business hours be answered by a hve person and will prowde lmmedmte access to a person haxnng the authority specified ~n the preceding sectuon 26 4 Company shall ~nvest~gate (tnclud~ng an attempt to contact the subscriber) and respond to the C~ty on each call, fax or written complaint or request by the end of the next business day and shall promde a written report w~th~n five (5) bus~ness days 26 5 Company shall g~ve the City notme In writing of changes in the key contact personnel or material changes in procedures ~nvolved m prowd~ng th~s service 27 Defimt~ons For the purposes ofth~s Exhibit B, the following defimtlons shall apply 27 1 Cable Admlmstrator means the person designated by C~ty as having pnnclple responslbflxty for cable matters 27 2 Complmnt means a telephone call or written commumcatlon from a customer notifying Company of a problem relating to Company's bflhng or bllhng practices, Company's equipment, p~eture quahty, failure to receive one or more channels, a change m Company's praetme or pohcy, Company advertising or other buslness practme, the conduct of a Company employee or contractor, or the failure of Company or a servme representative to comply with customer service regulations 27 3 Normal Operating Cond~ttons means those service conditions whmh are w~th~n the control of Company Those conditions whmh are not w~thln the control of Company ~nclude, but are not bm~ted to, natural disasters, 33 Clvll disturbances, power outages, telephone network outages, and severe or unusual weather conditions Those conditions which are wtthln the control of Company ~nclude, but are not hm~ted to, specml promotions, pay-per-wew events, rate increases, regular or seasonal demand periods, changes ~n the bflhng cycle, changes in the form of bills and other billing matters, changes in channel hneups or servmes that are w~th~n Company's control, and repmrs, rebuilds, maintenance and upgrade of the cable system including computer software and hardware 27 3 1 Y2K Y2K problems mvolwng systems of Company, CC Holdings, Vulcan, Charter or Affihates of any of them are not w~thln the control of Company for purposes of measunng comphance wath customer service standards dunng the period January 1, 2000 through and ~nclud~ng January 14, 2000 but are w~thm the control of Company before and after that period of t~me 27 3 2 Labor D~sputes Employee strikes, slowdowns and walkouts of less than 30 days duration are not w~tlun the control of Company 34 EXHIBIT 2 DENTON AGREEMENT Paul G Allen, as transferee of ultimate control of Marcus Cable Associates, L L C, makes the following agreement for the purpose of accepting an ordinance of the City of Denton ("Ci~y") consenting to the transfer of control of the cable television francl~lse in the City and the restmcmnng described in an Acceptance Agreement dated 3/,2 ~ , 1999 Capitalized words and phrases in this Agreement have the meaning set forth in the Acceptance Agreement t F_,92L~lttllI~ The promises, covenants, and conditions contained herein inure to the benefit of the City and are binding on Allen 2 Acknowled~mnent Allen acknowledges that the transfer of control and restructunng are expressly subordinate to and will not affect the binding nature of the Franchise and the obligations provided therein, and that the consent of the City to the Transaction does not constitute a waiver or release of any rights of the City 3 Reliance Allen acknowledges that the City has consented to the Transaction in reliance upon the representations, documents and information provided by Company, Charter, Vulcan and Allen, all of which are incorporated herein by reference 4 ~g~[.~3~d~glt~ Allen agrees that he will not contend directly or indirectly that any defaults or failures to comply with the franchise or other matters set forth in 47 USC § 546(c)(1)(A) (Commumcatlons Act of 1934, Section 626(c)(1)(A) (collectively "Defaults") which may have occurred prior to the Transaction are wmved, ~nclu&ng but not limited to the following 4 1 The ability of the City to obtmn redress for alleged prior Defaults, such as recover) of any underpayment of franchise fees or obtmn refunds for periods prior to the Transaction 4 2 The ability of the C~ty to enforce in the future any Franchise _. terms which may not have been enfomed in the past 4 3 The ability of the C~ty to consider alleged Defaults occumng prior to the Transaction in connection w~th any renewal or nonrenewal of the Franchise 4 4 Th~s Section 4 ~s w~thout preju&ce to Company contending that an alleged default or failure to comply either did not occur or has been cured 5 Cont~nm _ty of Management Allen acknowledges that (a) at the t~me of submission of the Form 394 subscribers residing ~n the C~ty were experiencing serious and on-going defimencles ~n servme, (b) the prowsmns of Exhth~t B are m response to these problems, and (c) the C~ty ~s approving the Transactmn and the transfer of control in rehance on the actmns taken by Allen and Charter m the ~ntenm to ~mprove customer servme and ~n the expectatmn of cont~nmty of Charter's management to assure that the problems wdl not recur Allen has caused the C~ty to be ~nformed that he intends to keep the present Charter management team m place 5 1 Allen agrees that ~fthere ~s any substantial change ~n Charter's semor management prior to December 31, 2001, then (a) Allen or Wflham D Savoy, and (b) a top officer of Charter, upon request, wdl appear m person ~n a public forum ~n Tarrant County, Texas (to be held jointly w~th other e~t~es with whom Allen has made a s~mllar agreement) m advance of the change for the purpose of explaining the change and answering questions "Substantml change" for purposes of th~s Section means a change of the CEO of Charter or the semor executive reporting to h~m or her who is responsible for the systems m Texas managed by Charter Paul G Allen ODMA~PCDOCS\GRR~262010\1 EXHIBIT B 1 CHARTER CO MMUNIC]AT~ONS' ,O,n-T~m, e Cu, stomer Service Gu, arantee Program Our On-Time Cu~omer Service Guarantee Program undcrscores our commitment w providing our customers w~th the best service possible This program is not about refunds; it is about making customer service a top priodty. Simply stated, we pledge the following · /' On-me installatton appomtment~ or the mstallauon of the primary. outlet ts ,z' On-ttme service appointments or the customer recexvea 5120 35 EXHIBIT B2 System Statistics for City, Third Quarter 1999 Homes Passed 11,719 Customers 4,937 Penetration 42% Discotmects 382 inet C-am Technical Performance Technical Service Galls 124 Technical Service Gall Rate 2 5% Service Interrupuon Response < 24 hfs 98 7% Service Call Availability for Next Business Day 96 5% ! Installation Schedules < 7 days 99 0% System Reliabihty 99 927% Telephone Performance Galls Received 110,000 Calls/knswered <30 seco~xds 101,000 Percentage answered < 30 seconds (unadluste~ 91 8% Percentage answered < 30 seconds (adjusted) * 93 7% Reasons for adjustment ice storm 12/17/98 City power outage 12/25/98 Calls to City Referred to Charter 10 On-Time Performance Servxcecalls - 95% next business day 99 8% installations - 95% within 1 business days 98 7% Serv,ce disruption - 95% within 2q hours Trained Company Representative available to respond to telephone inquiries 2q hfs/day. 7 days/week Percentage calls receiving busy signal Total outages reported · Adlustments are for Abnormal Operating Conditions as defined m Sections 19 3 and 21.3 of Exhibit 13 Acceptance Agr-eement 36 EXHIBIT B3 37 ZJo 1 ZJo Z O~ed ~[t &I[II}IX~ EXHIBIT B5 Page l of 2 ~Lt~ailabihty Analysis Month of ~ Date N~nh -' Sooth Southl~¢ [ Avail~bdlty A_vadabdlty TmphyClubl 01/02/99 0 0 0 01/0~/99 0 0 0 01/04/99 0 0 0 0~/05D9 ! I 01/0099 0 0 0 01/07/99 1 0 01/08D9 0 ! ! 01/09/99 0 0 0~/10/99 0 0 0 0]/11/99 0 0 0 01/12~)9 I 0 0 0~113/99 1 0 0 01114,t99 I 0 0 O1115/99 0 0 0 O1116/99 0 0 0 Ol,t17/t)9 0 0 0 01118/99 0 0 0 01119/99 I 0 0 01/20/99 0 0 0 01/21/99 0 I 0 01/22/99 0 0 I 01/23/99 0 0 0 01124/99 0 0 0 01/25/99 0 0 0 01/26/99 I 0 0 01/27/99 I 0 0 01/28/99 0 I 0 01/29/99 0 0 0 01/30199 0 0 0 0,1/31/99 0 0 0 tandard 95% 95% 95% [Standard Met'/ YES YES SAME DAY < 12 HFs Next Day 'I~o Days Ot~t 40 EXHIBIT B5 Page 2 of 2 laleSaIlatlan A v~ai[ab ll. iLv_An aly~is Month of ~ua~ Availability 01/01/99 0 01.t02~9 0 01/05/~ I ~I~ 0 01~ 0 01~ 0 O1~9 0 ~ 1~ 0 01/1~9 0 0~i I~ 0 0tti~ 0 01/1~9 0 01/14~ 0 01/15~ 0 01/1~ 0 01117~9 0 01118~9 0 01/19~ 0 01~ 0 01~1~ 0 01~9 0 01~9 0 01~4~9 0 0l~ 0 01~ 0 01~7~ 0 01~9 0 01~9D9 I 01~ 01~1~ 0 95% 0 ~S~DAY < 12 H~ Next Day Two ~ Out 41 _ EXHIBIT B6 _Customer Call Sample - January_ Calls Sampled 42 ~.XHIBIT 3 CATV POLE LEASE AGREENENT BETWEEN CITY OF DENTON, TEXAS AND GOLDEN TRIANGLE COHIqUN[CATIONS CATV Pole Lease A~reeme~ Index Ps~e Cos~ of Po~e Replace~n~s, A~c~e VI ~0 ~s~ Con~rac~s, A~icle ~ General, A~cle ~ Ind~y and Ins~ce, ~c~e X lns~la~o~ and h~e~nce of A~c~en~s and Poles, Project, on AKa~ns~ Cla~ for L~bel and S~ander, CopF~E2~ R~h~s-o~-~y, Leeal Au~ori~ and ~e~aul~, A~t~cle ~ 11 Scope of A~re~eu~, Ac~cle II 2 Spec~ca~o~, ~le IV 5 Te~ and Tem~on of A~reemen~, Act~cLe ~ CATV POLE LEASE AGREEMENT THIS AGREEMENT made as of the e]~q~ day of May, 197g, between the City of Denton, Texas, a Home Rule Municipal Corporation, hereinafter called Licensor, and Golden Triangle Communications, a partnership of the State of Texas, having its principal office at Atlanta, Georgia, hereinafter called Licensee, WITNESSETH. WHEREAS, Licensee proposes to furnish a CATV service {as hereinafter defined) to residents of Denton, Texas, intends to erect and maintain an antenna tower(s) located at Denton, Texas and proposes to install coaxial television cables, amplifiers and drop wires, wires and appliances together with associated cable messengers, anchors and other appurtenances (herein- after sometimes collectively called "equipment") throughout the area to be served and desires to attach such equipment to poles of Licensor and/or to poles used Jointly by Licensor and other companies; and WHEREAS, Licensor is willing to permit, to the extent it may lawfully do so, the attachment: of said equipment to its poles where, in its Judgment, such use will not interfere with its own serwce requirements or, as it may be adwsed, the serwce requirements of other joint users, including conside- rations of economy and s, fety. l~OV, TIIER~ORE, ~n cons~.derat'.~on of ~=he mu~.ual covenants, r. en~s and conditions he~e~n con~ned~ ~e para,es hereto do mutually covenen~ and as ~TIC~ ~ D~ITIONS 1. ~1 refer~ces he=ein ~o "Lice~orts poles" o~ "~s pole~" s~ll mean poles solely o~ed by ~e Licenso~, jowlly o~ed ~ Libor or ~e pole space ren~e~ o~ obeyed by o~her a~an~en~s by L=cp.-or from ~o~er o~e~. 2. A~i ~efer~ces here~n ~o "3o~ ~er" s~ll mean (1) a co. any or m~pal~=y w~ch ~o~e~er wi~ Llc~so= has a percen=a~e o~ersB=p ~ a pole, (2) a public u~1i~y co. any or m~c~pal~ w~ has at~a~en~ pr~leses L~censor's poles, or (3) a publ=c u=ili~y co.any vh~ olds poles on which L~ce~or has k~ac~n~ pr~v~leses. * 3. All references here~ to "~ se~.~ce" ~hall mean ~he mission ~ s~scribe=s of off-~e-ai= pic~p of broadcas= sisals or ~ransmiss~on wi~ou~ separa=e ~Ke of locally or~g~na=ed closed circui= ~elev~s~on =o ~e subscribers of off-~e-a~r sauce. SCO~ OF A~ 1. ~ce~o= hereby a~rees ~o l~cense and pe~ L~censee ~o a=~ch · ~s equipment, for ~he pr~a~ pu~ose of [u=~sh=~ CA~ sea=ce wi=~=n the area ou=lined in red un ~he map a~ached hereto as Exh=b~= A, to sucB -2- poles as are, ~n ~he judgueu~ of the L~censor, su~.able and available for such a~r. aclmene, s, subjec~ ~.o r=he coud~ons and l~a~o~ con~ed he~e~n. 2. L~c~ee agrees ~h~ ~s eq~pmen~ ~o be a~ed po~es s~ be ~ed fo~ ~he pu~ose of pFo~d~g ~ se~ce and s~ be ~ed pr~r~y ~or f~s~n~ ~ sauce. ~y res~d~ ~e~ capacity, however, ~y be ~ed by ~ce~ee for any ~awf~ pu~osa. 3. ~c~see agrees ~o sere from ~e proper fr~,s~g aurora=y, a frn~se ~o erec= and ma~n ~=s eq~pm~= w~ p~l~c s==ee=s, nd o~er ~orous~a~es provided su~ fran~s~ au~o=~=F =~s~, ~ shall sec=e ~y nd aL1 co~en=s, pe~=s o= l~c~es ~= my be legally for its opera~o~ heralder. P=io= to ~e ~ecu=~on of ~e A~remen=, ~censee shall del~ver =o L~c~so~ doc~en=a=ion sa=~s~ac=oW ~o L~c~or ev~denc~n~ ~= all such fran~ses, consents, pemi=s or ~ce~es ~ye been obeyed. ~. Lic~see asrees =o assis~ in, ~d bea~ ~e ~ense of, secur~ any co~en=s, pemi=s or l~ce~es ~a= may be req~ed by L~ce~or by =eason ~TIC~ III ~PLI~TION FOR P~ISSI0~ T0 1. A~ leas~ ~ (30) da~s p~o= to ~e t~e L~censee desires au=a~ ~=s equipmen= ~o any of L~censo='s poles, i= shall make written ~on on ~e fora marked E~b~= B at~ached he=e=o and male a par~ hereof, ~ n~be= of cop~es from ~e =o =~e prescribed by L~ce~o=. ~on approval of -3- sa~d appl~ca~ion, L~censor shall return one copy of Exhibit B to the L~censee bearLng ~he endorse~en~ of L~s pe~LssLon. 2. ~on rece~v~ su~ endorsed copy of sa~d application, bu~ no~ sooner, L~censee sha~ have ~he r~sh~, s~jec~ ~o Ar~Lc~e IV h~raLn, ~o ~s~a~, · aLn~aLn and use ~s equ~p~an~ described ~n saLd appL~ca~Lon upon ~e po~es Ldentified ~era~, provided ~ L%c~ee s~l co~te each ~ns~atzon v~ one (1) year from'da~e of said approved app~ca~2on; prided, however, ~t before co~enc~ any such ~s~al~a~Lon, L~ce~ee shall noilly L~c~sor ~e t~e when i~ proposes ~o do su~ ~ork and e co~le~on o~ su~ work, L~c~see s~l no~fy L~c~or and, ~ ~e even~ Licensor e~ec~ ~o ~ve l~s rapresen~ve present, L~c~see s~ re~burse L~censor for ~e cos~ and e~ense ~ereof. 3. ~ere costs are ~nvo~ved ~n ~e rearrang~en~ of L~censor's or o~er facL~es ~o acco~da~e L~censee's equipment, ~wo s~sned copies of sa~d application shall be re~u~ed ~o L~censee de~n~ the costs ~n ~he space provided ~ereon for ~ p~ose. Approval s~jec~ ~o ~ece~ au~o~Lza~on ~rom L~censee, on sa~d application space provided ~ereon ~or ~at pu~ose, to make ~anses and rea~ran$~s, L~c~see's sole ~sk ~d e~se, de~aLled by L~c~so~ ~i~ sa~d cop~es o~ sa~d app~cation. _ ~. L~censee s~l no~ have ~he r~ht to p~ace, nor s~ ~ p~ace, any addL~Lonal equLpmen~ upon any po~e used by app~Lca.~on ~herefor and receives L~censor's p~Lss~on ~o do so, a~ as -4- prescribed in paragraph ! of th~s Article, nor shal! L~censee change she pos~on of any equ£pnen~ attached to any such pole v£thout I~censor's prior ~r~tuen app=oval. The provisions of ~s Article shall not restr~c~ she at~achmen~ of telev£s~on drops to television crossa~ms or television cabl~ messenger. It ~s agreed that a charge equal to one and one hal£ the pole rental amount, as sp~c~ed ~ ~cle VIII, pez a~ac~en~ sha~ be ~ev~ed agaLns~ ~d pa~d by L~censee ~o~censoz for any~au~o~zed a~ac~n~ made by Lzce~ee to Lz~soz's poles or faczlz~zes. T~s ~azge addz~zon ~o renal cha~ges ~om ~e t~e of sazd ~au~o~zzed rear~ang~en~ costs, or o~her appropriate ~a~ges. In ~e ev~ of ~he ~u~o~Lzed a~ac~ ca~ot be de~e~Lned, ~ s~ be deemed to have occurred on ~he da~e succeed~g the day on ~h~ ~e ~ast jo~ su~ey ~as made zn accordance ~z~h Paragraph 1 of Ar~zcle V. 5. I~ Es agreed and ~de~s~ood ~ba~ zn ~he case of poles, pa~z~zon Lo a~ach ~ere~o sha!~ be subjec~ ~o Lzcenso~'s ob~znzng approval from such join~ users and/or o~mers wheneve= necessa~. ~TIC~ IV SPECIFI~TIONS ~. Lzce~ee, a~ E~s o~m cos~ and e~ense, shall comstock, ~d ~eplace z~s a~ac~n~s on L~censor's poles zn accordance wz~ (z) suc~ requzr~en~s and speczfzca~ons as Lzcensor shall f~om ~e ~o ~zme prescribe, (~z) zn complzance w~h any ~ules oz orders now zn ef~ec~ or ~ha~ he=eaf~e~ may ],e zssued by any ~egula~ory Co~zsszon o~ o~er au~ho~z~y havzn~ -5- and (~) ~:he requirements and specifications o~ ~-he ~a~:~oual Electrical Code, 1977 Ed~on~ and any american,s or ~evLs~ons of sa~d specifications code. In add~on, a~ a~ac~en~s sha~ be made by Lzcensee ~n accordance ~h~s Asre~en~ and ~b~s 1-10 a~ached hereto and made ~ pa~ he~eof. L~censee as~ees ~o co~y~ a~ ~s so~e r~sk and ~ense, ~L~ ~e of a~ EV~b~s a~ed he~e~o~ as revised f~om ~e ~o ~e by L~censo~ accordance ~ ~he provisions of ~s Article ~V. ~T~C~ V 1. The exac~ location of L~ce~ee~s a~c~en~s on po~es s~ be de~e~ed f~om a ~oLn~ su~ey ~o be made~ a~ su~ ~es as s~ be asked upon, by represen~ves o~ L~censor, L~ce~ee aud~ ~f desired by a ~o~ user L~ce~or may ~nspec~ each ne~ ~a~a~Lon of L~c~see on ~s po~es and ~n ~e v~c~y of L~s ~nes or appliances and may make periodic ~spec~ons ~e en~e p~n~ of L~censee as p~a~ cohesions my vagrant; and L~censee s~, on d~and~ re~b~se L~c~sor for ~e cos~ of such s~e~s and ~spec~ons. Such ~spec~ons sha~ no~ operate ~o re~eve L~censee of any respons~bL~i~y, ob~Lsa~on ~r ~ab~W ass~ed ~de~ ~s Asre~en~. 2. ~e L~censee*s a~a~en~s can be acco~oda~d on po~es L~censoF by Fearrans~$ o: c~ng~nl ~he fac~es of L~censor o~ o~her ~o~ use~s~ LLcensee aKrees ~o pay LLcensoF ~ advanca ~e cos~ of mak~l su~ rea~ans~en~s or c~an~es S~rens~n~n~ of po~es (~uy~s) ~eq~ed ~o accom- modaLe ~he a~ac~en~s of LLcensee and ~he bond~ o~ LLcensee*s s~and ~o -6- of L~censor sha].~, be pe=foL-med by L~censee ak ~s so].e r~sk and e~euse. ~o~k, however, ~y be pa=foxed by L~censo~ a~ ~s option) end ~ su~ even= L~censee s~ pay ~o L~censor ~n advance ~e cos~ o~ a~ suc~ vo~k. 3. Upon written no~ce ~rom L~c~so~, L~censee s~ ~e~oca~e o~ ~ep~ace ~s equ~pmen~ a~ed ~o L~ce~or*s po~es, or ~ra~e~ ~e same s~s~u~ed po~es, or p~fom any o~her vork ~n co.action w~ sa~d eq~pm~ ~a~ may be requested.by L~censo~, a~ L~c~ee's so~e :~sk and ~e~e, provided, however, ~ ~ oases of ~ergen~ L~c~so~ my, a~ L~c~ee's so~e :~sk and e~euse, a~se ~o relocate or :apiece ~e fac~es a~a~ed ~o sa:d poles by ~censee, ~ransfer ~'Co substituted po~es o: pe:fo~ any o~er p~c~, removal o~ re~ocaC~ou of sa~d po~es, ~e fac~es ~ereon or ~e eq~pmu~ w~ my be p~ac~d ~ereon, or ~o~ ~e se~ce needs of L~c~so:. ~. L~c~see sha~ no~:fy L~ceusq~ ~ advanced of ~he ~me ~hen p~oposes ~o replace any of ~s equ~puenc'a~ched ~o L~ce~or's po~es. 5. ~ ~ee ~:~-~ :eq~red on acco~ of L~censee's equ:pmen~ s~ be done by L~c~see a~ ~s so~e ~sk end e~ense end ~ a ma~er fac~ow ~o L~ce~or and any o~er jo~n: users. 6. L~censee s~, a~ ~s ~o~e r~sk and e~ense, ~n~a~n a~ m~c~s on L:ce~or's po~es ~ s~e con~on and ~ ~ho:ouS~ 7. Licensor reserves ko i~.sel£, i~.s successors and sss~sus ~.he r~gh~ ko maintain ~s poles and ~o operate ~s ~ac~es ~hereon ~n such maker as ~11 bes~ enable 2~ ~o [~f~ll ~s public se~ce ~eq~en~s. L~censor o~er jo~C ~ers s~ no~ be l~able ~o ~ce~ee ~or any ~er~pt~on to ~e se~ce o~ ~censee o~ ~or ~n~er~erence v~ ~he operation o~ ~e equ~pmen~ ~c~see, ~ess ~ se~ce ~2e~p~on ~as crea~ed so~e~ by ac~s ~c~sor. p~ace a crossa~ on any pole. ~ a crossa~ ~s req~red ~o acco~oda~e ~e ~ac2~es of ~e L~ce~ee, ~ Licensee sha~l so s~a~e ~he reasons ~erefore ~hou~ ~e ~r~or ~ri~ consu~ of L~ce~or except, ~ cases o~ ~ergenc~, vhen oral pe~ss~on sha~l ~ve been ob~ued [rom L~censor*s a~hor~zed r~Fes~a~ve a~ Denton, Texas and s~seque~ly co~ed ~ lO. If L~censee should ~equ~re ~he location o[ ~s eq~pmen~ upon p~c ~oroug~are or o~er p~ic or p~va~e proper~y ~n ~he conduc~ o~ its bus.ess ~ ~e ~e~o~ cove~ed by ~s Agre~ and L~censor sha~ no~ have pole ~ac~es so ~oca~ed ~o ~u~ L~cen3ee's requ~s, L~cense~ sBa~ so not~ ~censor, and ~e pa~es sha~l ~ere~on dene~ne vho sha~ p~ace such -8- pole facilities ~n such location. The pole fac~l~ties shall be erected xn such locatzons adequate to mee~ ~e se~ce requ~en~s o~ bo~ L~censee and L~censo~ and ~f placed by ~e L~censo~, ~e L~censee sha~ ~ereupon make application for pem~ss~on ~o p~ace ~s eq~pmen~ ~e~eon as provided ~n ~s A~re~en~. If ~e pole fac~es are placed by L~c~see, a~ privileges sha~l be made available char~ed Lice~ee heralder. ll. Ho~ ~n ~.~s Agreemen~ shall be construed to oblzga~e Licensor to grant Licensee pemn~ss~on to use any particu~sr pole and Licensor at its d~screCion may revoke penn~ssion Cheretofora Srauted ~o L~ceusee ~th respect Co any part~cuJ, er po~.e. If such pe~ss~on ~s refused~ L~ce~ee ~s free Co ~ka any o~e~ a~an~an~ no~ pro~b~ed ~der ~e ~e~ of Chis Asre~en~, it may ~sh ~o provide fo~ i~s equipment a~ ~he location ~ q~es~on. 12. Whenever, pursuant to the provisions of Chis Asreeuent, Licensee shall be required Co remove ~s a~c~n~s from any pole, such r~oval sha~ be made, except as o~se speci~ca~ly pro~ded, vi~n ~y (30) days follow~g ~e g~v~g of no~2ce ~o Licensee by ~c~sor Zo so ~emove. fa~ure of L~censee ~o r~ove such a~c~en~s wit~,~ su~ ~r~y (30) days or as o~e~se req~ed, L~c~or may r~ove ~ and ~arge all costs associated v~h su~ ~oval Co.L~censee. · 13. Licensee agrees that £t shall not ~uCerset po~es vhere Licensor's facilities are located no~ shall ~t ~oca~e poles, S, tys, or o~her facilities where ~n e~her case they w£~l ~er[e~e ~th access to L~censor's poles or violate any prov~sion o~e Ha~onal Electric Safe,y Code. ARTICLE VI COST OF POL~ REPLACEHENIS 1. ~aenever Licensee appl=es for penn~ss£ou to at~ach to a pole is considered by ~ic~sor ~o be ~su~f~c~ ~ he~g~ or s~r~g~ ~o~ acco~oda~ion of L~c~ee's a~ac~en~s, or ~n ~e eveu~ ~= L~ce~or or ~o~ ~er of ~e pole shall ceq~e ~e space occupied ~ L~c~see's a~en~, ~censor s~L~ no~ L~c~see o[ sn~ [ac~ ~d o~ ~e es~a~ed cos~ ~o L~c~ee o~ ~p~ac~ su~ po~e ~ a po~e ~ch ~1 acco~oda~e ~e a~en~s o~ L~c-~ee, L~ce~or and ~y su~ jo~n~ ~e~. W~h~ ~r2y (30) cloys o~ such no~fica~ou, L~censee shall e~er no~2~ L~c~sor (i) o[ a~val o~ su~ r~lac~ or (~) off ~s ~nce~la~on o~ ~e app~ca~on ~Bpec~ tO SU~ po~e or (~) ~ ~e case o~ ~2s~ a~~s, off elec~on ~ E~ove ~s a~c~s ~rom ~e pole. 2. ~n ~ ~en~ o~ ~c-neee's approva~ o~ su~ ~c-e-or shll ~epLace ~e pole a~ Lice~ee sha~ pay ~o L2censor ~ advance ~ ~Kes ~e~efore co~u~ed as ~o~ows: ~e ~o~1 cos~ o~ ~e n~ pole, ~e r~ova~ o~ ~e old pole, ~e ~An~er~n~ o~ ~c~or*s and a~ su~ jo~n~ ~er's a~s ~rom ~ o~d ~e ne~ pole and su~ o~e~ costs, ~ ~, necess~ed by Licensee's ~eq~s, less ~e ~o~al o~ ~e ~o~lov~s: acc~ed deprecation on ~e old po~e, s8lvaBe, ~ an~, and ~e cos~ o~ such port,on o~ ~e ne~ po~e, ~ff ~ ~epresen~s s~ace rescued ~or ~e use of L~censor or any such ~o~n~ user Krea~er ~an ~a~ provided ~or ~ on the old po~e, less appropriate contribution by any o~her [~censee, ~ any -10- ARTICLE VII ,RIG~TS=OF-WAY~ LEGAL AUTHORITY A~D DE~AU~? 1. ~on execution of t~s A~reenen~, Licensee shall submit evidence sat~sfac~o~ to licensor of ~s au~or~Cy ~o erecC and ma~ ~s eq~pmen~ w~n public s~ee~s, ~ways and o~er ~o~ou~a~es end sha~ se~e necessaw ~c~se, pe~ or consen~ f~om Federal, s~Ce or m~c~pa~ au~o~es and from ~e o~eres of proper~y now or he~ef~er ~eq~ed ~o cous~ruc~ and mi~n~a~ su~ equ~pmen~ a~ ~e loca~o~ of poles of L~censo~ ~o w~ ~ desires ~o a~. ~ ~e even~ any su~ franc~se, ~c~e, pem~ or cousen~ ~s r~oked or ~s ~ereaf~er deu~ed ~o L~ceusee for any reason, pe~ss~ou ~ a~ach ~o l~c~sor's poles she~ ,~ed~a~e~y Cem~naCe, L~censee shall w~n reeso~b~e ~e r~ove ~s eq~p~ from L~ce~or*s po~es and L~censor a~ ~s option may forthwith ~em~e ~s Asre~en~. 2. · ~on no~ce from L~censor ~o L~censee che~ ~he cessation of use o~ an~ po~e or poles has been requested or d~ec~ed by Federal, s~e o~ ~c~pal au~hor~es, or proper~y o~ers, pem~ss~on co a~ ~o such pole o~ poles sha~ ~ediaCely ~em~ce end L~c~see s~ for~h~ r~ove equipmen~ ~here~ron. 3. I~ L~c~ee s~ fa~ ~o co~y v~h any of ~he prows~ous o~ ~s AS~e~, ~c~ud~ns ~e spec~ica~ons hereinbefore referred ~o, o~ defau~ ~ any of ~s ob~Ea~o~ ~de~ ~s Asre~eu~, and she~ ~rW (30) days after ~en no~ce f~om L~ce~o~ ~o correc~ such defa~ o~ -31- noncompliance, Licensor may, at its option forthwith terminate this Agreement in its entirety or, at its election, revoke the permit covering the pole or poles involved in such default or noncompliance, or at Licensor's option, obtain service of an attorney to institute suit or other Judicial proceeding to remedy and default by Licensee in its performance of the covenants, terms and conditions of this Agreement and Licensee expressly agrees that the defeated party shall pay reasonable attorney's fees and expenses of such legal counsel. ARTICLE VIII RENTALS 1. For the privilege of placing and maintaining attachments on Licensor's poles, Licensee shall pay an annual rental rate of five dollars ($5.00) per contract. 2. Rentals shall be payable annually in advance to the Licensor on the first day of ~anuary each year during which th~s Agreement re- mains in effect. 3. At anytime after two (2) years from the date of this Agreement and at intervals of not less than two {2) years thereafter, the rentals shall be sub3ect to adjustment by Licensor upon written notice. 4. Rental payment shall be made within sixty (60) days of the receipt of statement. Any late payment shall bear ~n ~nterest rate of ten percent (10%) per annum. $. The Licensee and Licensor shall together maintain a perpetual inventory of coca! Licensee contacts through the use of Exhibit B, "Appli- cation of Per.it," and Exhibit C, "Notice of Re~oval,°' and ell future rental f~es shall be based on such perpetual inventory. The Licensor umy st its option use a physical inventory in lieu of perpetual inventory The cost of such physical inventory shall be shared proportionally among the participatin$ companies. 6, In the event Licensee makes an attachment co the Licensor's pole ac anytime after commencement of this Azreement and fails Co comply to Article III, Parasraph ! hereof, then Article ~II, Perasraph &, shall apply 7. In ~he event that Licensor files a tariff with the appropriate regulatory authority durinS the term of this Asreement coverin$ attachments made to i~s poles, LEcensor reserves the right co substitute the rates and charses covered by such tariff in place of the rentals oat forth in this Article. 8. The Licensee shell reimburse the Licensor in advance for all net capital costs incurred by Licensor as a result of replacins poles and equipment as required by Licensee fo~ the initial installation of Licensee's attachments, l~Lcensor shell credit such advance reimbursement by Licensee to initial and subsequent rental lease fees. Licensor shall notify Licensee of the estimated ne~ costs of such replacement8 on the application forms. Licensee shall make payments of such estimated costs and renal adjustments in payments or credits shall be made at the completion of the work nd shell be based on actual costs incurred. ARTICLE IX TER~A,~D TERMINATION OF AGREEMENT 1. This Asree~nc, if nec previously cenainaced in accordance rich the provis~ons hereo~, 8hall continue in effec~ for a ce~ of f~ve (~) yea~8 ~d ~hereafcer until ce~2naced as provided herein. ~e Asree- MnC uy be ~e~naCed aC the end of sa~d ci~ or aC any c~ ChereafCer by e~her parcy ~2vinS co the ocher party ac lease n~neCy (90) days eriCCen notice. Upon Ce~C~on of the AsreemenC Ln accordance ~ch any of ~cs cern, L~censee sh~l remove leo sa~d equ~p~nc from all poles of L~c~oor vich~n thirty (30) days thereafter. -13a- 2. L~censee may at an~' tLme remove ~s equipment attached to any pole or poles of Licensor, but shall ~e~ned~ately give LLcanso~ vr~en no~ce such r~oval ~n ~ rom of ~b~ C ~ached hereto and made a par~ hereo~. No credL~ of ref~d of an~ ~n~a~ sha~ be a~lo~ed L~censee on acco~ of such removal. 3. T~s Asre~en~ sha~ be subjec~ to ~e~a~on by L~censo~ ~ou~ no~Lce, o~, vh~a cLrc~s~anc~s p~, upon f~ve (5) days' no~ce ~o L~ca~ee, ~on objec~Lon be~$ rode by o~ on beha~[ o[ any gove~en~a~ au~or~ asser~n~ p~oper Jurisdiction ~e~eon. 1. ~ce~ee s~ll ~n~,~ ~y, protect and hold ~e~s L~ce~or and other joL2t users of said poles fro~ and aSa~st any and all loss, costs, claims, d~ands, da~ase and/or e~e~e ar~s~ns out o[ any d~and, cla~, ~uit or jud~ent for da~ases to property and inju~ to or dea~ o[ persons, includ~n~ the o~ficers, asents and e~loyees of eider pa~y hereto and other joLnt ~ers of said poles, inc~udLn$ pa~t ~ade ~der any ~or~en's ~ensation Law and ~de~ any plan fo~ ~loyees' disabLlzty ~d dea~ beneEits, ~ch may arLse out of or be caused by the erectzon, ma~tenance, presence, use or removal of sazd eq~pm~t o~ b~ ~e-prox~ity of ~e ~espective c~bles, u. ires, apparatus and appliances, o~ ~e pa~ties hereto or other joLnt users o~ said po~es, or out of any act or omission or a[[esed act or om~sszon o[ Lzcensee, znc[udLn~ an~, claims and de~ands of customers of Licensee. -14- 2. Licensee shall carry insurance, at 1ts sole cost and expense, to protect the parties hereto and other 3o~nt users of said poles from and against any and all such claims and demands and from and against any and all actions, Judgments, costs, expenses and l~abtltttes of every name and nature which may arise or result, directly or 1ndtrectly, from or by rea- son of the acts or omissions of Licensee hereunder and irrespective of any fault, fatlure, negligence or alleged negligence on the part of Licensor or of any other Joint user of said poles. The amounts of such insurance are set out tn Section 27-58 of Ordinance No. 78-21 of the City of Denton ordinances, and the Licensee will comply ~tth the provisions of that section. Licensee shall promptly advise an authorized representative of Licensor of all claims relating to damage to property or ln3ury to or death of persons, arising or alleged to have arisen in any manner by, er dlrectly or indirectly associated ~tth, the erection, maintenance, presence, use or removal of LJcensee's equipment. 2. Ltcensee has furnished $30,000 tn security as required by Section 27-43 of Ordinance No. 78-21 (Cable Television Franchise Ordinance) and such sum shall also guarantee the performance of all the covenants, rems and conditions of this agreement. 3. Licensee shall exerctse specie1 precautions to avoid damage to facilities of Licensor and of other 3otnt users on sa~d poles and hereby assumes all responsibility for any and all loss for such damage Licensee shall make an immediate report to Licensor of the occurrence of any such damage and hereby agrees to reimburse L~censor for the expense incurred tn making repairs necessitated thereby. -15- ~TICI,E XI 1. Licensee sha~ in~-t~y, protec~ ~d ho~d ha~ess L~censor f~om a~d a~a~t any and a~l cla~s for libel and slander, copyr~h~ and/o~ to L~c~o~'s po~e~ pu~s~n~ ~ ~s Agre~en~. . 1. L$c~ee s~l not ass~, tr~[er or sub,et ~s A~re~ent, or ~c~sor. Previded, however, ~at Lice~or's consent shaL~ not p~ace ~or~e~e or lien upon ~ ~ac$1it~es o[ L~c~ee for the pu~ose sysco. 2. No ~e, however extended, of Lic~or's poles ~der ~ Agree- ~en~ sha~l create or vest in L$ce~ee any ~ership or prope~y r$sht ~n saLd poles, but L~ce~ee's ri~h~s ~erein s~ll Be and r~aLn a me~e No.ins her~ con~ed shal~ be co~t~ed to co~ L~c~or ~o ~a~ any of i~s poles for a period lonier ~an ~at d~and~ b~ L~s o~ se~$ce ~equLre- men~s. 3. Nol~,,.n~ bere~.n cou~.ained shall be consr, rued as affec~n~ ~gh~s or p~iv~e~es previo~ly confe~ed by L~censo~ ~o o~hers, by con~ac~ or o~e~se, ~o ~e any poles covered by ~s Agre~en~, and LLc~sor s~l~ have ~e ~gh~ ~o continue ~o ex,end such r~gh~s o~ privileges, ~e privileges g~an~ed here~de~ s~ a~ a~l ~es be subjec~ ~o such contracts and arran~en~s and no~g con~a~ed herein s~ll be cons~d as affec~in~ ~he r~gh~ of L~c~sor ~o gr~ a~c~ p=~v~leges ~o su~ o~er par~ies as ~= may d~s~re ~o do so. ~. ~a~ure ~o e~orce or ~s~s~ upon constance ~ any of ~e ~em or cond~ions of ~s Agcemenk sha~ no~ constitute a general ~a~ver or reL~quLs~en~ of any su~ terns or condi~o~ bu~ ~he same sha~l be and r~a~n at a~l ~es ~ f~l force and effect. 5. Subject ~o ~e provLsions of paragraph 1 ~f ~s Article, Agre~ sha~2 ex~end ~o and b~d ~e scc~essors and ass~s of ~a para,es hereto. 6. No~h~ng con~a~ed here~n sha~l be cons~ed as affec~g ~he ~gh~s conferred or exercised by ~e par~2es ~dar presen~ or future gove~en~ 4u~or~y or regulation. PA~ O~ BI~S 1. A~I amours payab~ by L~censee ~o L~censor ~der ~e provLs~ons of ~s AEre~n~ shall, ~l~ss o~he~ise specif~ed, be payable w~n (30) days al=er presentation of b~lls therefor. Nonpa~en~ of ~y such ~hen due s~11 cons~i~u=e a defaul~ ~d~= t~s A~reemen~. ARTICLE XIV EXISTING CONTRACTS 1. All existing Agreements between the parties hereto for the joint use of facilities are by mutual consent hereby abrogated and superseded by this Agreement. Nothing in the foregoing shall preclude the parties to this Agreement from preparing such supplemental operating routines or working practices as they mutually agree to be necessary or desirable to effectively admin(ster the provisions of this Agreement. ARTICLE XV NOTICE 1. Any notice provided in this Agreement to be given by either party hereto to the other shall be deemed to have been duly given when made in witting and deposited in the United States Mail, postage prepaid, addressed as follows: TO LICENSEE: ~olden Triangle Co~nuntcattens 53 Perimeter Center East Suite 300 Atlanta, Georgia 30346 TO LICENSOR City of Denton 215 East McKinney Denton, Texas 76201 Attn: Director of Util'ties -18- IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written. CITY OF DENTON, TEXAS, LICENSOR ATTES~ GOLDEN TRIANGLE COMMUNICATIONS, LICENSEE BY: ~ Al'TEST. (. ~r~nce~ -lg- EXHIBIT 4 CABLE DUCT USE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND SAMMONS COMMUNICATIONS, INC. 2095L TABLE OF CONTENTS Article Page I. Definitions 1 II. Scope of Aireement 2 III. Application for Permission to Install Cable 3 IV. Specifications 4 V. Installation and Maintenance of Cable and Duct 4 VI. Rights-Of-Way, Legal Authority and Default 5 VII. Fee 6 VIII. Term and Termination of Agreement 6 IX. Force Majeure 7 X. Indemnity and Insurance XI. Limitation on Assignment and Transfer 8 XII. Supplemental Operating Routines or Working Practices 9 XIII. Notice 9 Attachment Exhibit A: Drawin§ No. P.U.E.D. 132 Revision Level O, Dated June 24, 1985 Attachment Exhibit B: Drawing No. P.U.E.D. 133 Revision Level O, Dated June 24, 1985 Attachment Exhibit C' Drawing No. P.U.E.D. 134 Revision Level 0, Dated June 26, 1985 Attachment Exhibit D: Drawing No. P.U.E.D Revision Level O, Dated July 5, 1985 2095L CABLE DUCT USE AGREEMENT This Cable Duct Use Agreement made and entered into effec- tive and operative as of the day of , 1988 by and between the City of Denton, Texas, a Home Rule Municipal Corporation, hereinafter referred to as "Licensor," and Sammons Communications, Inc., a Texas Corporation, hereinafter referred to as "Licensee," WITNESSETH' WHEREAS, Licensee is franchised to furnish CATV Service (as hereinafter defined) to residents of Denton, Texas and is the assignee of and bound by a certain "CATV POLE LEASE AGREEMENT" dated the 7th day of May, 1979, between the Licensor and Golden Triangle Communications, which permits the Licensee to attach equipment necessary to the provision of CATV Service to Licensor's electric utility poles; and WHEP~S, Licensor has caused poles to be removed and underground cable duct to be installed for the purpose of distribution of electricity in the area commonly known as "The Square" and further defined tn Exhibit A, Drawing No. P.U.E.D. #132, Revision Level 0, Dated June 24, 1985; Exhibit B, Drawing No. P.U.E.D. #133, Revision Level 0, Dated June 24, 1985, Exhibit C, Drawing No. P.U.E.D. ~134, Revision Level 0, Dated June 16, 1985; Exhibit D, Drawing No. P.U.E.D. #135, Revision Level 0, Dated July 5, 1985; and WHEREAS, Licensor has dedicated a d~ct withi~ Li~.ensor[s System of Ducts to be used for CATV Service to sUbSCribers Ln said area and is willing to permit, to the extent it may lawfully do so, the use of said duct by Licensee where, in Licensor's Judgment, such use will not interfere wi~h its ~wn service requirements or, as it may be advised, the servzce requirements of the Joint Users, present or future, including consideration of economy and safety. NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions herein contained, the parties hereto do mutually covenant and agree as follows. ARTICLE I. DEFINITIONS 1. Ail references herein to "Licer~sor's Duct" or "Licensor's System o~ Ducts" or "Licensor's Duct System" shall mean duct and related appurtenances consisting of vaults, manholes, ]unction boxes, and pull boxes solely owned by the Licensor, Jointly owned by Licensor, or duct rented or obtained through other arrangements by Licensor from another owner. 2. All references herein to "3oint User" shall mean (1) a company or municipality which together w~th Licensor has a percentage ownership in a duct or system of duc=s, (2) a public utility company or municipality which has use privileges for Licensor's duct, or (3) a public utility company which owns duct for which Licensor has use priv~leges. 3. All references herein to "CATV Service" shall mean all services provided by Ssmmons Communications as defined in its franchise asreemen= with the City of Den=on. 4. Ail references herein to "Licensee's Cable" shall mean the coaxial cable or Cables and associated Joining fittings used as the transmission media for CATV Service. 5. All reference herein to "Licensee's Equipment" shall refer to amplifiers, power supplies and other similar support equipment =ha= is no= sui=abie for inclusion in duct system manholes~ vaults, June=ton boxes and pull boxes. ARTICLE II. SCOPE OF AGREEMENT 1. Licensor hereby agrees to license and permit Licensee to route Licensee's Cable, for the primary purpose of furnishing CATV Service in accordance with its franchise, within the area commonly known as "The Square," and further defined by Exhibits A, B, C and D; to such of Licensor's Duct System of as are, in the Judgment of the Licensor, suitable and available for such cable, subject to conditions and limitations contained herein. 2. Licensee agrees =ha= only cable shall be routed through Licensor's Duct and related manholes, vaults, pull boxes and June=ion boxes and =ha= Licensee shall ins=all Licensee*s Equipment in above ground locations si=ed to prevent interference with Licensor's access to said manholes, vaults, pull boxes and Junction boxes. 3 Licensee agrees =ha= =his A§reement ex=ends only =o the use cf the Licensor's Duc= System as defined on Exhibits A, B, C, and D, and that Licensee agrees to secure and maintain from the proper franchising authority, a franch%se to erect and maintain its equipment within public s~re~ts, highways and other thoroughfares provided such franchising authority exists, PAGE 2 and shall secure any and all consents, permzts or licenses that may be required by law for its operations. 4. Licensee agrees to assist in and bear the expense of securing any consents, permits or licenses that may be required by Licensor by reason of this Agreement. ARTICLE III. APPLICATION FOR PERMISSION TO INSTALL CABLE 1. At least thirty (30) days prior to the time Licensee desires to install cable in Licensor's Duct System, it shall make written application to Licensor. Licensor shall review Licensee's application and upon approval, shall supply Licensee written approval to proceed with installation. 2. Upon receiving such written approval but not sooner, Licensee shall have the right, subject to Article IV herein, to install, maintain and use Licensee's Cable described in said application in ducts identified therein, provided that Licensee shall complete each installation within one (1) year from date of said approved application; provided however, that before commencing any such installation, Licensee shall notify Licensor at least five days in advance of the time when it proposes to do such work and, in the event Licensor elects to have its representative present, Licensee shall reimburse Licensor for the cost and expense thereof. 3. ~ere costs are involved in the rearrangement of Licensor's Duct or other facilities to accommodate Licensee's Cable, the Licensor shall notify Licensee of these estimated costs and Licensee shall notify the Licensor in writing that actual costs will be paid by Licensee to effect such rearrange- ment. Licensor shall then make said changes and rearrangements, at Licensee's sole risk and expense, and upon completion shall notify the Licensee that installation of cable may proceed. 4. Licensee shall not have the right to place, nor shall it place, any of Licensee's Equipment in Licensor's System of Ducts and its associated manholes, vaults, pull boxes, and junctioln boxes; and shall install only the Licensee's Cable and ftttingl required for its termination and assembly or connection within the duct system. Licensee's Equipment necessary for the full operation, of and delivery of CATV Service shall be constructed, housed, or mounted external to Licensor's System of Duct, s. 5. Licensee shall not chan§e the position of any cable routed through Licensor's Duct System without Licensor's prior PAGE 3 written approval. The provisions of this Article shall not restrict the attachment of service drops from Licensee's Cable installed in the Licensor's System of ducts. ARTICLE IV. SPECIFICATIONS 1 Licensee, at its own cost and expense, shall construct, maintain and replace Licensee's Cable in accordance with (i) such requirements and specifications as Licensor shall from time to time prescribe, (ii) in compliance with any rules or orders now in effect or that hereafter may be issued by a regulatory Commission or other authority having Jurisdiction, and (iii) the requirements and specifications of the National Electrical Safety Code, 1987 Edition, and any subsequent amendments or revisions of said specifications or code. ARTICLE V. INSTALLATION AND MAINTENANCE OF CABLE AND DUCT 1. Upon written notice from Licensor, Licensee shall, within thirty (30) days of receipt of such notice, relocate or replace Licensee's Cable or transfer the same to a substitute duct system or perform any other work in connection with said Cable that may be requested by Licensor, at Licensee's sole risk and expense, provided, however, that in cases of emergency, Licensor may, at Licensee's sole risk and expense, arrange to relocate or replace the Licensee's Cable, transfer said Cable to a sub- stitute duct system or perform any other work in connection with said Cable that may be required in the maintenance, replacement, removal or relocation of said duct system, for the service needs of Licensor. 2. No additions to, or change of locations of Licensee's Cable in Licensor's Duct System shall be undertaken without the prior written consent of Licensor, except in cases of emergency, when Licensee must obtain oral permission from Licensor's authorized representative, presently designated as the City of Denton, Director of Utilities and subsequently confirmed in writing. 3. Licensee shall, ~t its sole r~sk and expense, maintain all of Licensee's Cable in Licensor's Duct System in safe conditzon and thorough repair. L~censor or its agents shall be sole judge of suitability of such condition and repair. 4 Licensor reserves to itself, its successors and assigns the right to maintain Licensor's Duct System and to operate its facilities therein in such manner as will best enable it to PAGE fulfill its public service requirements. Licensor or the Joint Users will make every reasonable effort to prevent interruption to the service of the Licensee but shall not be liable to Licensee for any interruption to the service of Licensee or for interference with the operation of the Licensee's Equipment. 5. Nothing in this Agreement shall be construed to obligate Licensor to grant Licensee permission to use any particular duct and Licensor at its discretion may revoke permission therefore sranted to Licensee with respect to any particular duct if Licensor can make a substitute duct system available. If such permission is refused, Licensee is free to make any other arrangement not prohibited under the terms of this Asreement it may wish to provide for Licensee's Cable at the locetion in question. 6. Whenever, pursuant to the provisions of this Agreement, Licensee shall be required to remove Licensee's Cable from any duct, such removal shall be made, except as otherwise specifi- cally provided, within thirty (30) days followin8 the giving of notice to Licensee to so remove. Upon failure of Licensee to remove Licensee's Cable within such thirty (30) days or as otherwise required, Licensor may remove Licensee's Cable and charge all costs associated with said removal to Licensee. ARTICLE VI. RIGHTS-OF WAY, LEGAL AUTHORITY AND DEFAULT 1. In the event any such franchise, license, permit or consent necessary for the lawful provision of CATV Service is revoked or is hereafter denied to Licensee for any reason, permission to route Licensee's Cable through Licensor's Duct System shall immediately terminate, Licensee shall, within a reasonable time, remove Licensee's Cable from Licensor's Duct system mhd Licensor, at its option, may forthwith terminate this Agreement. 2. Upon notice from Licensor to Licensee that the cessation of the use of any duct system has been requested or directed by Federal, state or municipal authorities, permission to route Cable through such duct system shall immediately terminate and Licensee shall forthwith remove Licensee's Canle therefrom. 3. If Licensee shall f~il to comply with any of the provisions of this Agreem, nt, including the specification heretofore referred to, or aefaults in any of its obllgations under this Agreement, and sha~l fail within thirty (30) days after written notice from Licensor to correct such default or noncompliance, Licensor may, mt its option PAGE 5 a) forthwith terminate this Agreement in its entirety, or, b) at its election, revoke the permit covering the duct or ducts involved in such default or noncompliance, or, c) at Licensor's option, obtain service of an attorney to institute suit of other Judicial proceeding to remedy any default by Licensee in its performance of the covenants, te~ms and conditions of this Agreement. Licensee expressly agrees that it shall pay reasonable attorney's fees and expenses of such legal counsel. ARTICLE VII. FEES 1. For the privilege of placing and maintaining Licensee's Cable in Licensor's Duct System as shown on Exhibits A, B, C and D, Licensee shall pay an initial fee of $18,000, and the sum of $20.00 per year for the next fourteen (it) years, due and payable on October 1, of each year. 2. No additional fees will be paid by Licensee during the term of this A~reament except as provided elsewhere herein. 3. Payment of the $18,000 fee shall be made within thirty (30) days of the execution of this agreement. Failure to pay such amount when due shall constitute a default under this Agreement. ARTICLE VIII. TERM AND TERMINATION OF AGREEMENT 1. This agreement, if not previously terminated in accord- ance with the provisions hereof, shall continue in effect for a term of fifteen (15) years and thereafter until terminated as provided herein. The Agreement may be terminated at the end of said term or at any time thereafter by either party giving to the other party at least (90) days written notice. Upon termination of the agreement, Licensee shall remove Licensee's Cable for the Licensor's Duct System within thirty (30) days of the effective termination date. 2. Licensee may at any rime remove Licensee's Cable from Licensor's Duct System but shall immediately give Licensor written notice of intent of such removal and Licensee's intent PAGE 6 to terminate this Asreement. No credit or refund of any fee shall be allowed Licensee on account of such removal. 3. This Agreement shall be subject to termination by Licensor without notice, or, where circumstances, permit, upon five (5) days written notice to Licensee, upon objection being made by or on behalf of any governmental authority asserting prior Jurisdictions thereof. ARTICLE IX. FORCE MAJEURE If either party is rendered unable, wholly or in part, by force majeure or other causes herein specified, to carry out its obligations under this Agreement, other than the obligation to make ~ayment of amounts due hereunder, it is agreed that on such party s giving notice and reasonable full particulars of such force majeure in writing to the other party within a reasonable time after the occurrence of the cause relied on, then the obligations of the party giving such notice, so far as they are affected by such force majeure or the causes herein specified, shall be suspended during the continuance of any inability so caused, but zor no longer period, and such cause shall so far as possible be remedied with all reasonable dispatch. For purposes of this Article, force majeure means any cause or event not reasonably within the control of either party, including without limitation the following' acts of God, strikes; lockouts; orders of any kind of the government of the United States or of the State of Texas or of any of their departments, agencies or officials, or civil or military auth- orities, insurrections, civil disturbances, epidermis, land- slides, lightning, earthquakes; fires; hurricanes, tornadoes, storms, typhoons, cyclones, waterspouts, floods, washouts, arrests, restraints of government and people, explosions, breakage or accident to machinery and transmission lines or poles. ARTICLE X. INDEMNITY AND INSURANCE 1. Licensee shall indemnify, protect and hold harmless Licensor and other Joint Users of said duct system from and agaznst any and all loss, costs, claims, demand%, damage and/or expense arising out of any demand, claim, suit or Judgment for damages to property and injury to or death of persons, including the officers, agents and employees of either party hereto and other Joint Users of said duct system, including paymen~ made PAGE 7 under any Workers' Compensation law and under any plan for employees' disability and death benefits, which may arise out of or be caused by =he erection, maintenance, presence, use or removal of Licensee's Cables or by =he proximity of =he respec- tive cables, wires, apparatus and appliances of =he parties hereto or other Join= Users of said duct system, or arising out of an ac= or omission of alleged ac= or omission of Licensee, including any claims and demands of customers of Licensee. 2. Licensee shall carry insurance, a= its sole cos= and expense, to protect the parties hereto and other Joint Users of said duc= system from and against any and all such claims and demands and from and against any and all actions, Judgments, costs, expenses and liability of every name and nature which may arise or result, directly or indirectly, from or by reason of =he acts or omissions of Licensee hereunder and irrespective of any fault, failure, negligence or alleged negligence in =he parc of Licensor or of any or the Joint users of said duct system. T~ minimum amounts of such insurance are se= out in Section 27 58 of Ordinance No. 78-21 of =he City of Denton Ordinances, and =he Licensee will comply with =he provisions of =hat sec=ion, and as the same may be amended. Licensee shall promptly advise the authorized representative or Licensor of all claims relating to damage =o property or injury =o or death of persons, arising or alleged to have arisen in any manner by, or directly or indirectly associated with, =he erection, maintenance, presence, use or removal of Licenseets property. 3. Licensee shall exercise special pre=au=ions =o avoid damage to facilities of Licensor and or =he Join= Users in said ducts end hereby assumes all responsibility for any and all loss for such damage, Licensee shall make an immediate report =o Licensor of =he occurrence of any such damage and hereby aErees =o reimburse Licensor for =he expense incurred in making repairs necessitated =hereby. A~TICLE XI. LIMITATION ON ASSIGNMENT AND TRANSFER 1 Licensee shall not assign, transfer or sublet this Agreement, or any of the privileges hereby granted =o it, without the prior written consent of Lzcensor. Provided, however, that Licensor's consent shall not be required =o place a mortgage or lien upon the facilities of Licens,e for the purpvse of financing the installation, improvement, maintenance or extension of its system. 2. No use, h~wever extended, of Licensor's Duct System under this Agreement shall create or vest in Licensee any ownership of PAGE 8 property right in Licensor's Duct System, but Licensee's rights therein shall be and remain nothing more than a License. Nothing herein contained shall be construed to compel Licensor to maintain any of its duct system for a period longer than that demanded by its own service requirements. 3. Nothing herein contained shall be construed as affecting the rights or privileges previously conferred by Licensor to others, by contract or otherwise, to use any ducts covered by this Agreement, and Licensor shall have the right to continue to extend such rights or privileges; the use privileges granted hereunder shall at all times be subject to such contracts and arrangements and nothing contained herein shall be construed as affecting the right of Licensor to grant use privileges to such other parties as it may desire to do so. 4. Failure to enforce or insist upon compliance with any of the terms or conditions of this Agreement shall not constitute a general waiver or relinquishment of any such terms or conditions, but the same shall be and remain at all times in full force and effect. 5. Subject to the provisions of paragraph 1 of this Article, this Agreement shall extend to and bind the successors and assigns of the parties hereto. 6. No:bins contained herein shall be construed as affecting the rights conferred or exercised by the parties under present or future governmental authority or regulation. A~TICLE XII. SUPPLEMENTAL OPERATING ROUTINES OR WOB/(ING PRACTICES 1. Nothing in the foregoing shall preclude the parties to this Asreement from preparing such supplemental operating routines or working practices as they may mutually agree to in writing to be necessary or desirable to effectively administer the provisions of this Agreement. ARTICLE XIII. NOTICE 1. Any notice provided in this Agreement ro be ~ven by either party hereto to the other shall be deemed to have been duly given when made in writing and depositeo in the Unlted States Mail, postage prepaid, addressed as follows PAGE 9 TO LICENSEE: TO LICENSOR: Sammons Communications, Inc. City of Denton 205 Industrial Attn: Director of Utilzttes Denton, Texas 76201 215 East McKinney Denton, Texas 76201 IN WITNESS WHEREOF, the par=les hereto have caused this Agreement to be duly executed as of the day and year first above written. CITY OF DENTON, TEXAS, LICENSOR BY: ~ ATTEST: APPROVED AS TO LEGAL FO~4: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY BY: ~ SAMMONS COMMUNICATIONS, INC., LICENSEE ^ ATTEST PAGE 10