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Construction Franchise Term New Completion Date Reduction Expiration Date August 28, 2006 0 August 28, 2011 August 28, 2007 12 months August 28, 2010 August 28, 2008 24 months August 28, 2009 February 28, 2009 30 months February 28, 2009 By way of example, if, by August 28,2007, no additional Significant Cable System Construction has occurred, Grantee will be in the thirty six (36) month "renewal window" provided in 47 U.S.C. 546, since the Franchise term would then expire on August 28, 2010. 7. Exhibit B(2) ("Construction Schedule") of the Franchise Agreement is deleted and replaced by: It is agreed by Grantor and Grantee that as of the effective date of Amendment No.1, Grantee has completed and activated one hundred eight (108) residential nodes, with an additional eighty-three (83) nodes remaining to be constructed and activated to complete the Cable System. 8. Exhibit E is hereby added to the Franchise Agreement and shall read as follows: Multi-Jurisdictional Fiber Network Grantor and Grantee agree that, in consideration of the mutual covenants, terms and conditions set forth in Amendment No.1, and in conjunction with similar agreements reached between Grantee and the Cities of Belmont, Burlingame, Millbrae and San Carlos (the "Participating Cities"), Grantee shall provide the following Multi-Jurisdictional Fiber Network (the "MJF Network"): A. Grantee shall utilize Grantee's optical fiber, previously installed under EI Camino Real, and shall provide the following MJF Network at no cost to any of the Participating Cities: (1 ) One installed and operational SONET Ring Fiber Network (herein termed the MJF Network) consisting of two (2) strands of optical fiber and, as described in Subsection B, and appropriate terminal and activation equipment, to a designated connection location in each of Page 4 of 10