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outlet requiring more than one hundred twenty five (125) feet of drop cable; provided, however, <br /> that Franchisee shall charge for provision of Basic Service to the additional service outlets once <br /> installed. Cable Service may not be resold or otherwise used in contravention of Franchisee's <br /> rights with third parties respecting programming. Equipment provided by Franchisee, if any, <br /> shall be replaced at retail rates if lost, stolen, or damaged. <br /> 4. SYSTEM OPERATION <br /> The parties recognize that Franchisee's FTTP Network is being constructed and will be operated <br /> and maintained as an upgrade to and/or extension of its existing Telecommunications Facilities. <br /> The terms of this Franchise do not modify or alter the jurisdiction of the City over such <br /> Telecommunications Facilities, which jurisdiction is restricted by federal and state law. The City <br /> agrees that this Franchise does not give the City additional authority over Franchisee's FTTP <br /> Network in contravention of the limitations set forth in federal and state law. <br /> 5. EMERGENCY ALERT SYSTEM <br /> 5.1 Emergency Alert System: <br /> 5.1.1 Franchisee shall comply with the Emergency Alert System("EAS") <br /> requirements of the FCC in order that emergency messages may be distributed over the System. <br /> 6. PEG SERVICES <br /> 6.1 PEG Set Aside: <br /> 6.1.1 In order to ensure universal availability of public, educational and <br /> government("PEG")programming, Franchisee shall provide on the Basic Service Tier one <br /> dedicated Government Access Channel. In addition, Franchisee shall provide on the Basic <br /> Service Tier, one dedicated Educational Access Channel, within one hundred twenty(120) days <br /> from receipt of the City's written request to activate such Educational Access Channel, provided <br /> that all other cable providers in the Service Area are required to similarly provide such <br /> Educational Access Channel. <br /> 6.1.2 Franchisee will reserve two (2) additional PEG Access Channels dedicated <br /> exclusively to PEG purposes and will make available such additional PEG Access Channels <br /> pursuant to the following criteria: <br /> 6.1.2.1 City must provide Franchisee written documentation(e.g., <br /> programming schedules for the existing PEG Access Channel(s)) of its need for additional <br /> programming capacity that cannot be fulfilled by existing PEG Access Channel(s). Such need <br /> may be demonstrated by the use of the existing PEG Access Channel(s) for PEG programming <br /> within the City for at least eight (8)hours per day, which programming for purposes of this <br /> calculation shall not include character-generated programming; <br /> 6.1.2.2 All cable providers within the Franchise Area similarly provide <br /> such additional PEG Access Channel; and <br /> EVERETT 11 <br /> Seattle-3388207.8 0010932-00119 <br />