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1. RECITALS <br /> WHEREAS,the City is authorized to grant franchises for the installation,operation and maintenance <br /> of telecommunications services within the City; and <br /> WHEREAS, the Grantee, LEVEL 3 COMMUNICATIONS, LLC has represented to the City that it <br /> provides a telephone business as defined by RCW 82.16.010, and has applied to the City for a <br /> telecommunications services franchise to construct, operate and maintain a telecommunications <br /> system within the City; and <br /> WHEREAS,the Grantee is willing to accept this franchise subject to the terms and conditions stated <br /> herein and to abide by these terms and conditions; and <br /> WHEREAS,the City Council finds that it would serve the public interest of the residents of the City <br /> to grant a non-exclusive telecommunications services franchise to the Grantee subject to the terms <br /> and conditions set forth below. <br /> NOW, THEREFORE, THE CITY OF EVERETT DOES ORDAIN: <br /> 2. DEFINITIONS <br /> For the purposes of this Ordinance, the following terms,phrases, words and their derivations shall <br /> have the meanings given herein. When not inconsistent with the context,words used in the present <br /> tense include the future,words in the plural include the singular, and words in the singular include <br /> the plural. Words not defined shall be given their common and ordinary meaning. The word <br /> "shall" is always mandatory and not merely directory. <br /> 2.1 "Affiliate," when used in connection with Grantee, means any Person who owns or controls, <br /> is owned or controlled by, or is under common ownership or control with Grantee. <br /> 2.2 "Assurance" shall mean an irrevocable letter of credit in a form and from a fmancial institution <br /> satisfactory to the City, a performance bond or other form of assurance of financial responsibility <br /> reasonably acceptable to the City. All Assurances shall be in a form acceptable to the City's Risk <br /> Manager and City Attorney, and if a bond, with a surety acceptable to the City's Risk Manager and <br /> City Attorney. <br /> 2.3 "Cable Service" means (a)the one-way transmission to subscribers of(i)video <br /> programming, or(ii) other programming service, and(b) subscriber interaction, if any, which is <br /> required for the selection or use of such video programming or other programming service. <br /> 2.4 "City" is the City of Everett, Washington, a body politic and corporate under the laws of the <br /> State of Washington, and all of the area within its boundaries, as such may change from time to <br /> time. <br /> 2.5 "City Council" means the Everett City Council, or its successor, the governing body of the <br /> City of Everett. <br /> {DPK2242501.DOCX;4/13113.000007/1 <br /> Wireline Franchise 4 of 30 <br />