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3.1.1 Initial Service Area: Franchisee shall offer Cable Service to significant <br /> numbers of Subscribers in residential areas of the Initial Service Area and may make Cable <br /> Service available to businesses in the Initial Service Area,within twelve(12)months of the <br /> Service Date of this Franchise, and shall offer Cable Service to all residential areas in the Initial <br /> Service Area within four(4)years of the Service Date of the Franchise,except: (A)for periods <br /> of Force Majeure; (B) for periods of delay caused by City; (C)for periods of delay resulting . <br /> from Franchisee's inability to obtain authority to access rights-of-way in the Service Area; (D) in <br /> areas where developments or buildings are subject to claimed exclusive arrangements with other <br /> providers; (E)in areas,developments or buildings where Franchisee cannot access under <br /> reasonable terms and conditions after good faith negotiation, as determined by Franchisee; (F)in <br /> developments or buildings that Franchisee is unable to provide Cable Service for technical <br /> reasons or which require non-standard facilities which are not available on a commercially <br /> reasonable basis;and(G)in areas where the occupied residential household density does not <br /> meet the density requirements set forth in Sub-section 3.1.2. <br /> 3.1.2 Density Requirement:Franchisee shall make Cable Services available to <br /> residential dwelling units in all areas of the Service Area where the average density is equal to or <br /> greater than 25 occupied residential dwelling units per mile as measured in strand footage from <br /> the nearest technically feasible point on the active FT1'Y Network trunk or feeder line. Should, <br /> through new construction, an area within the Initial Service Area meet the density requirements <br /> after the time stated for providing Cable Service as set forth in Subsections 3.1.1 and 3.1.2 <br /> respectively, Franchisee shall provide Cable Service to such area within twelve(12)months of <br /> receiving notice from the City that the density requirements have been met. <br /> 3.1.3 Additional Service Areas: Except for the Initial Service Area, Franchisee <br /> shall not be required to extend its Cable System or to provide Cable Services to any other areas <br /> within the Franchise Area during the term of this Franchise or any Renewals thereof. If <br /> Franchisee desires to add Additional Service Areas within the Franchise Area,Franchisee shall <br /> notify City in writing of such Additional Service Area at least ten(10)days prior to providing <br /> Cable Services in such areas. <br /> 3.2 Availability of Cable Service: Franchisee shall make Cable Service available to <br /> all residential dwelling units and may make Cable Service available to businesses within the <br /> Service Area in conformance with Section 3.1 and Franchisee shall not discriminate between or <br /> among any individuals in the availability of Cable Service. In the areas in which Franchisee <br /> shall provide Cable Service,Franchisee shall be required to connect, at Franchisee's expense, <br /> other than a standard installation charge,all residential dwelling units that are within one <br /> hundred twenty five(125) feet of trunk or feeder lines not otherwise already served by <br /> Franchisee's FTTP Network. Franchisee shall be allowed to recover,from a Subscriber that <br /> requests such connection,actual costs incurred for residential dwelling unit connections that <br /> exceed one hundred twenty five(125) feet and actual costs incurred to connect any non- <br /> residential dwelling unit Subscriber. <br /> 3.3 Free Cable Service: Subject to Section 3.1,Franchisee shall provide in the <br /> Service Area,without charge,one service outlet activated for Basic Service to City Hall,2930 <br /> Wetmore, Everett,Washington. Franchisee shall be entitled to recover the direct cost of <br /> installing, if requested to do so,more than one outlet, or concealed inside wiring, or a service <br /> EV ERETT 10 <br /> Seattle-338820.8 0010932-00119 <br />