Agmt00 RCN Telecom Services (now Astound)

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� � SECTION 5 SYSTEM CONSTRUCTION 5.1 Construction (a) In accordance with the provisions of Exhibit "B," the Grantee shall construct, as appropriate, a Cable System to provide a minimum capacity corresponding to an upper operating frequency of at least Eight Hundred Sixty (860) Megahertz (MHz), within six (6) years of the effective date of this Agreement. Grantee may activate portions of the plant and offer services in phases, as Grantee may determine. Completion of construction shall be defined as the activation of at least Five Hundred Fifty (550) Megahertz (MHz) of downstream capacity, with the capability to provide up to Seventy Eight (78) channels of video programming, without digital compression, to all residential Subscribers within the Service Area, as well as satisfactory completion of any permit-specified requirements and the public building connections provided in Section 5.2 below. The failure by Grantee to meet the construction schedule detailed in Exhibit "B" may be considered a material breach of this Agreement and may subject Grantee to the remedies contained in Section 3.8 of this Agreement. (b) If construction of the Cable System is completed, and the offering of all services to all residents within the Service Area occurs within five (5) years of the effective date of this Agreement, the term of the Franchise shall be extended by two (2) years, for a total Franchise term of thirteen (13) years. (c) If construction of the Cable System is substantially completed and the offering of all services to at least ninety-two and one-half percent (92.5%) of all residents within the Service Area occurs within four (4) years of the effective date of this Agreement, the term of the Franchise shall be extended by five (5) years, for a total Franchise term of sixteen (16) years. 28 sh/RWC/Council AGMT-382 FXS/fs 08/02/00