AGREEMENT This Franchise Agreement (hereinafter, the ?Agreement? or ?Franchise Agreement?) is made between Goochland County, a political subdivision of the Commonwealth of Virginia (hereinafter, ?County?) and Comcast of Massachusetts/Virginia, Inc. (hereinafter, ?Grantee?). The County, having determined that the ?nancial, legal, and technical ability of the Grantee is reasonably suf?cient to provide the services, facilities, and equipment - necessary to meet the future cable?related needs of the community, desires to enter into this Franchise Agreement with the Grantee for the construction, operation and maintenance of a Cable System on the terms and conditions set forth herein. SECTION 1 - Definitions For the purpose of this Franchise Agreement, capitalized terms, phrases, words, and abbreviations shall have the meanings ascribed to them in the Cable Communications Policy Act of 1984, as amended from time to time, 47 U.S.C. 521 et seq. (the ?Cable Act?), unless otherwise de?ned herein. 1.1. ?Af?liate? in relation to any person, means another person who owns or controls, is owned or controlled by, or is under common ownership or control with, such person. 1.2. ?Cable Operator? means any Person or group of Persons that provides Cable Service over a Cable System and directly or through one or more af?liates owns a signi?cant interest in such Cable System or (ii) otherwise controls or is responsible for, through any arrangement, the management and operation of a Cable System. 1.3. ?Cable Service? means the one-way transmission to Customers of video programming or (ii) other programming service, and Customer interaction, if any, which is required for the selection or use of such video programming or other programming service. Cable service does not include any video programming provided by a commercial mobile service provider de?ned in 47 U.S.C. 332(d). 1.4. ?Cable System or System? means any facility consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designed to provide Cable Service that includes video programming and that is provided to multiple Customers within the County, except that such de?nition shall not include: a system that serves fewer than 20 Customers; a facility that serves only to retransmit the television signals of one or more television broadcast stations; a facility that serves only Customers without using any Public Right-of-Way; a facility of a common carrier that is subject, in whole or in part, to the provisions of Title II of the Communications Act of 1934, 47 USC 201 et seq., except that such facility shall be considered a Cable System to the extent such facility is used in the transmission of video programming directly to Customers, unless the extent of such use is solely to provide interactive on?demand services; any facilities of any electric utility used solely for operating its electric systems; or any portion of a System that serves fewer than,50 Customers in any locality, where such portion is part of a larger System franchised in an adjacent locality; Or an open video system that complies with 653 of Title VI of the Communications Act of 1934, as amended, 47 U.S.C. 573. 1.5. Customer(s)? means the County or any Person who is lawfully receiving, for any purpose or reason, any service via the Grantee?s Cable System, whether or not a fee is paid for such service. 1.6. ?Effective Date? means the date on which all persons necessary to sign this Agreement in order for it to be binding on both parties have executed this Agreement as indicated on the signature page(s), unless a speci?c date is otherwise provided in the ?Term? Section herein. 1.7. means the Federal Communications Commission or successor governinental entity thereto. 1.8. ?Franchise? means the initial authorization, or renewal thereof, issued by the Franchising Authority, whether such authorization is designated as a franchise, agreement, permit, license, resolution, contract, certi?cate, ordinance or otherwise, which authorizes the construction and operation of the Cable System. 1.9. ?Franchise Agreement? or ?Agreement? shall mean this Agreement and any amendments or modi?cations hereto. 1.10. ?Franchise Area? means the present legal boundaries of the County as of the Effective Date, and shall also include any additions thereto, by annexation or other legal means. 1.11. ?Franchising Authority? means the County or the lawful successor, transferee, designee, or assignee thereof. 1.12. ?Grantee? shall mean Comcast of Massachusetts/Virginia, Inc. 1.13. ?Gross Revenue? means all revenue, as determined in accordance with generally accepted accounting principles, that is actually received by the Grantee and derived from the operation of its Cable System to provide Cable Service in the Franchise Area; however, ?Gross Revenue? shall not include: refunds or rebates made to Customers or other third parties; (ii) any revenue which is received from the sale of merchandise over home shopping channels carried on the Cable System, but not including revenue received from home shopping channels for the use of the Cable Service to sell merchandise; any tax, fee, or charge collected by the Grantee and remitted to a governmental entity or its agent or designee, including without limitation a local public access or education group; (iv) program launch fees; directory or Internet advertising revenue including, but not limited to, yellow page, white page, banner advertisement, and electronic publishing; (vi) a sale of Cable Service for resale or for use as a component part of or for the integration into Cable Service to be resold in the ordinary course of business, when the reseller is required to pay or collect Franchise fees or similar fees on the resale of the Cable-Service; (vii) revenues received by any Af?liate or any other Person in exchange for supplying goods or services used by the Grantee to provide Cable Service; and revenue derived from services classi?ed as Noncable Service under federal law, including, without limitation, revenue derived from telecommunications services and information services, and any other revenues attributed by the Grantee to Noncable Service in accordance with rules, regulations, standards, or orders of the Federal Communications Commission. 1.14. ?Normal Business Hours? means those hours during which most similar businesses in the community are open to serve Customers. In all cases, ?normal business hours? must include some evening hours at least one night per week and/or some weekend hours. 1.15. ?Normal Operating Conditions? means those service conditions which are within the control of the Cable Operator. Those conditions which are not within the control of the cable operator include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and severe or unusual weather conditions. Those conditions which are ordinarily within the control of the Cable Operator include, but are not limited to, special promotions, pay-per-view events, rate increases, regular peak or seasonal demand periods, and maintenance or upgrade of the Cable System. 1. 16. ?Person(s)? means any natural person(s) or any association, firm, partnership, joint venture, corporation, or other legally recognized entity, whether for- pro?t or not-for pro?t, but shall not mean the Franchising Authority. 1.17. ?Public shall mean the surface of, and the space above and below, any public street, avenue, highway, boulevard, concourse, driveway, tunnel, park, parkway, waterway, dock, bulkhead, wharf, pier, alley, right-of-way, including, but not limited to easements dedicated for compatible use. 1.18. ?Service Interruption? means the loss of picture or sound on one or more cable channels. 1.19. ?Transfer? means any transaction in which an ownership or other interest in the Grantee is transferred, directly or indirectly, from one Person or group of Persons to another Person or group of Persons, so that majority control of the Grantee is transferred; or (ii) the rights and obligations held by the Grantee under the Franchise are transferred or assigned to another Person or group of Persons. However, notwithstanding clauses and (ii) of the preceding sentence, a transfer of the Franchise shall not include transfer of an ownership or other interest in the Grantee to the parent of the Grantee or to another Af?liate of the Grantee; transfer of an interest in the Franchise or the rights held by the Grantee under the Franchise to the parent of the Grantee or to another Af?liate of the Grantee; any action that is the result of a merger of the parent of the Grantee; any action that is the result of a merger of another Af?liate of the Grantee; or a transfer in trust, by mortgage, or by assignment of any rights, title, or interest of the Grantee in the Franchise or the System used to provide cable in order to secure indebtedness. SECTION 2 - Grant of Authority 2.1. The Franchising Authority hereby grants to the Grantee a nonexclusive Franchise, subject to the terms and conditions?of this Franchise Agreement, the Code of Virginia, the County Code and all other applicable law. The Franchise will be for the period speci?ed in Section 2.2 below, during which time the Grantee will receive the right and obligation to construct, reconstruct, operate and maintain a Cable System within the Public Ways in those areas of the County speci?ed in Section 4 to provide Cable Service. This Franchise Agreement neither authorizes the Grantee to use the Public Ways for purposes of providing any service other than Cable Service, nor prohibits the Grantee from doing so. The Grantee?s authority to provide noncable service shall be subject to applicable law. No privilege or power of eminent domain is bestowed by this grant, nor by the Agreement. 2.2. Term of Franchise. The term of the Franchise granted hereunder shall be, ten (10) years commencing upon the Effective Date of the Franchise, unless the Franchise is renewed or is law?Jlly terminated in accordance with the terms of this Franchise Agreement and the Cable Act. 2.3. Reservation of Authority. Nothing in this Franchise Agreement shall abrogate the right of the Franchising Authority to perform any public works or public improvements of any description, (ii) be construed as a waiver of any codes or ordinances of general applicability promulgated by the Franchising Authority, or be construed as a waiver or release of the rights of the Franchising Authority in and to the Public Ways. All rights and privileges granted herein are subject to the police powers of the County and its rights under applicable laws and regulations to exercise its governmental powers to their full extent. The County reserves the right to exercise its governmental powers over Cable Systems granted by the Communications Act of 1934, except as limited by state law. These regulatory powers include without limitation the authority: to enforce Customer Service standards in accordance with the Act; to enforce more stringent standards as agreed upon by the Cable Operator through the terms of a negotiated cable Franchise; and to regulate the rates for basic Cable Service in accordance with the Act. 2.4. Grant Not Exclusive. The Franchise and the right it grants to use and occupy Public Ways shall not be exclusive, and the County reserves the right to grant other Franchises for similar uses or for other uses of Public Ways, or any portions thereof, to any Person, or to make any such use itself, at any time, with or without a Franchise. 2.5. Reciprocity. The Grantee and the County shall comply with 15.2- 210826 of the Code of Virginia. SECTION 3 Construction and Maintenance of the Cable Svstem 3.1. Permits and General Obligations. The Grantee shall be responsible for obtaining, at its own cost and expense, all permits, licenses, or other forms of approval or authorization necessary to construct, operate, maintain or repair the Cable System, or any part thereof, prior to the commencement of any such activity. The Grantee shall comply with all applicable law regarding its construction and maintenance of the Cable System. 3.2. Cable System Tests and Inspections. A. The Grantee shall perform all tests necessary to demonstrate compliance with the requirements of the Franchise and other performance standards established by law or regulation, and to ensure that the Cable System components are operating as expected. B. The Grantee shall conduct tests upon the County?s request to ensure that its Cable System is functioning in compliance with applicable laws and regulations, and make the results of such test available to the County to verify such compliance. If any such test indicates that any part or component of the System fails to meet applicable requirements, the Grantee, without requirement of additional notice or request from County, shall take corrective action, retest the locations and advise the County of the action taken and results achieved. C. The County may conduct inspections of construction areas and Customer installations, includingbut not limited to inspections to assess compliance with the Grantee?s construction and installation requirements, this Agreement and applicable law generally. Inspection does not relieve the Grantee of its obligation to build in compliance with all provisions of the Franchise. D. Speci?c testing and inspection requirements in this Agreement, including but not limited to those of Sections through shall not be read to preclude the County from exercising its general rights to inspect and require information. 3.3. Publicizing Proposed Construction Work. The Grantee shall notify the public prior to commencing any proposed construction that will signi?cantly disturb or disrupt public property or have the potential to present a danger or affect the safety of the public generally. The Grantee shall publicize proposed construction work at least one (1) week prior to commencement of any proposed non-emergency construction work by causing written notice of such construction work to be delivered to the Franchising Authority and by notifying those Persons most likely to be affected by the work in at least one (1) of the following ways: by telephone, in person, by mail, by distribution of ?yers to residences, or by publication in local newspapers. SECTION 4 - Service Obligations 4.1. General Service Obligations. The Grantee shall make Cable Service available to every residential dwelling unit within the Franchise Area where the minimum density is at least thirty (30) dwelling units per mile when measured from the nearest segment of the existing Cable System that is capable of providing a usable cable signal. Subject to this density requirement, Grantee shall offer Cable Service to all new homes or previously unserved homes located within 150 feet of the Grantee?s distribution cable, The Grantee may elect to provide Cable Service to areas not meeting the above density and distance standards. The Grantee shall continue to provide Cable Service to those homes currently being served within the Franchise Area. The Grantee may impose an additional charge in excess of its regular installation charge for any service installation requiring a drop or line extension in excess of the above standards. Such additional charge shall be paid by the developer or landowner or Customer requesting Cable Service in an area that does not meet the density and distance standards. 4.2. Public, Educational and Governmental Access Channels. At the County?s request, the Grantee shall make available to all Customers on the System up to three (3) video channels for public, educational and governmental access use at the County?s discretion. Use of channel capacity for public, educational and governmental access shall be provided on the most basic tier of service offered by Grantee in accordance with the Cable Act, 611, and as further set forth below. Grantee does not relinquish its ownership of or ultimate right of control over a channel by designating it for PEG use. A PEG access user whether an individual, educational or governmental user acquires no property or'other interest by virtue of the use of a channel so designated, and may not rely on the continued use of a particular channel number, no matter how long the same channel may haVe been designated for such use. Grantee shall not exercise editorial control over any public, educational, or governmental use of channel capacity, except Grantee may refuse to transmit any public access program or portion of a public access program that contains obscenity, indecency, or nudity. 4.2.1. Public Access. A ?Public Access Channel? is a channel designated for noncommercial use by the public on a ?rst-come, ?rst-served, nondiscriminatory basis. Grantee shall designate capacity on one 1) channel for public access video programming provided by the Franchising Authority or its designee, such as a public access organization. A Public Access Channel may not be used to cablecast programs for pro?t, nonpolitical or commercial fundraising in any fashion. 4.2.2. Educational Access. An ?Educational Access Channel? is a channel designated for noncommercial use by educational institutions such as public or private schools, community colleges, and universities, but not ?home schools.? 4.2.3. Government Access. A ?Governmental Access Channel? is a channel designated for noncommercial use by the Franchising Authority. 4.2.4. Grantee shall provide an upstream link connecting the County Administration Building with the Grantee?s headend for the transmission of programming on the Government Access Channel. 4.3. Emergency Alert System. 4.3.1. Grantee shall comply with the Emergency Alert System requirements of the FCC in order that emergency messages may be distributed over the System. 4.4. No Discrimination. Neither the Grantee nor any of its employees, agents, representatives, contractors, subcontractors, or consultants, nor any other Person, shall discriminate or permit discrimination between or among any Persons in the availability of Cable Services provided in connection with the Cable System in the Franchise Area. It shall be the right of all Persons to receive all available services provided on the Cable System so long as such Person?s ?nancial or other obligations to the Grantee are satis?ed, unless such Person has engaged in theft of Grantee?s Cable Services, vandalism of its property or harassment of its representatives. Nothing contained herein shall prohibit the Grantee from offering bulk discounts, promotional discounts, package discounts, or other such pricing strategies as part of its business practice. 4.5. Prohibition Against Reselling Service. No Person shall resell, without the express prior written consent of the Grantee, any Cable Service, program or signal transmitted over the Cable System by the Grantee. 4.6. Technical Standards. The Cable System shall meet or exceed the technical standards set forth in 47 C.F.R. 76.601, et seq. and any other applicable technical standards. 4.7. Leased Access Channels. The Grantee shall provide leased access channels as required by federal law. 4.8. Use of Poles and Conduits. The County shall have the right to install and maintain without charge its own equipment upon the Grantee?s poles and conduits in such locations and for such time periods as space is available, upon the conditions that (1) the County?s equipment shall not interfere with the operations of the Grantee, and (2) the County?s use shall not be for a competitive commercial purpose. 4.9. Home Wiring. The Grantee shall comply with 47 C.F.R. 76.800-806 regarding Cable Inside Wiring. SECTION 5 - Fees and Charges to Customers 5.1. All rates, fees, charges, deposits and associated terms and conditions to be imposed by the Grantee or any af?liated Person for any Cable Service as of the Effective Date shall be in accordance with applicable rate regulations. Before any new or modi?ed rate, fee, or charge is imposed, the Grantee shall follow the applicable FCC notice requirements and rules and notify affected Customers, which notice may be by any means permitted under applicable law. SECTION 6 - Customer Protection Standards: Customer Bills: and Privacy Protection Grantee shall be subject to the Customer Protection Standards contained in 47 CPR. 76.309, 1602, 1603, 1618, 1619 and 1622. Upon request, Grantee shall provide an annual report to the County that includes a summary of Grantee?s performance and - compliance with the Customer Protection Standards. In addition, Grantee shall maintain and provide to the County on request a log of all Customer complaints indicating the action taken by the Grantee. SECTION 7 COMMUNICATIONS TAX AND FRANCHISE FEE 7.1. Communications Tax: Grantee shall comply with the provisions of Section 58.1?645 et seq. of the Code of Virginia, pertaining to the Virginia Communications Sales and Use Tax, as amended (the ?Communications Tax?), and Sections 7.2 through 7.6 of this Agreement shall not have any effect, for so long as the Communications Tax or a successor state or local tax that would constitute a Franchise Fee for purposes of 47 U.S.C. 542 as amended, is imposed on the sale of Cable Services by the Grantee to Customers in the County. 7.2. Payment of Franchise Fee to County: In the event that the Communications Tax is repealed and no successor state or local tax is enacted that would constitute a Franchise Fee for purposes of 47 U.S.C. 542, as amended, Grantee shall pay to the County a Franchise Fee of ?ve percent of annual Gross Revenue, beginning on the effective date of the repeal of such tax (the ?Repeal Date?). Beginning on the Repeal Date, the terms of Section 7.2 through 7.6 of this Agreement shall take effect. In accordance with Title VI of the Communications Act, the twelve (12) month period applicable under the Franchise for the computation of the Franchise Fee shall be a calendar year. Such payments shall be made no later than thirty (30) days following the end of each calendar quarter. Should Grantee submit an incorrect amount, Grantee shall be allowed to add or subtract that amount in a subsequent quarter, but no later than ninety (90) days following the close of the calendar year for which such amounts were applicable; such correction shall be documented in the supporting information required under Section 7.3 below. 7.3. Supporting Information: Each Franchise Fee payment shall be accompanied by a brief report prepared by a representative of Grantee showing the basis for the computation, and a breakdown by major revenue categories (such as basic service, premium service, etc.). The County shall have the right to reasonably request further supporting information for each Franchise Fee payment, subject to the proprietary information provisions of Section 8.8. 7.4. Limitation on Franchise Fee Actions: The period of limitation for recovery of any Franchise Fee payable hereunder shall be three (3) years from the date on which payment by Grantee is due. 7.5. Bundled Services: If Cable Services subject to a Franchise Fee, or any other fee determined by a percentage of the Cable Operator?s Gross Revenues in a locality, are provided to Customers in conjunction with other services: the Franchise Fee shall be applied only to the value of these Cable Services, as re?ected on the books and records of the Cable Operator in accordance with rules, regulations, standards, or orders of the Federal Communications Commission or the State Corporation Commission, or generally accepted accounting principles. Any discounts resulting from purchasing the services as a bundle shall be reasonably allocated between the respective services that constitute the bundled transaction. 7.6. Au_dit 7.6.1. Subject to the proprietary information provisions of Section 8.8 of this Franchise Agreement, the County, or such Person or Persons designated by the County, shall have the right to inspect and copy records and the right to audit and to recompute any amounts determined to be payable under this Franchise, without regard to by whom they are held. If an audit discloses an overpayment or underpayment of Franchise Fees, the County shall notify the Grantee of such overpayment or underpayment within ninety (90) days of the date the audit was completed. The County, in its sole discretion, shall determine the completion date for any audit conducted hereunder. Audit completion is not to be unreasonably delayed by either party. 7.6.2. Subject to the proprietary information provisions of Section 8.8 of this Franchise Agreement, the Grantee shall be responsible for providing to the County all records necessary to con?rm the accurate payment of Franchise Fees. The Grantee shall maintain such records for three (3) years. The County?s audit expenses shall be borne by the County unless the audit determines the payment to the County should be increased by more than five percent in the audited period, in which case the costs of the audit shall be paid by the Grantee to the County within thirty (30) days following written notice to the Grantee by the County of the underpayment, which notice shall include a copy of the audit report. If the recomputation results in additional revenue to be paid by Grantee to the County, such amount shall be subject to an interest charge of the Prime Rate plus one percent If the audit determines that there has been an overpayment by the Grantee, the Grantee may credit any overpayment against its next quarterly payment; and, the County shall waive the interest charge on any past due amounts that were a result of such overpayment by the Grantee. The auditor shall not be compensated on a success based formula, e. payment based on a percentage of any underpayment, if any. 7.7. No Limitation on Taxing Authority. A. Nothing in this Agreement shall be construed to limit any authority of the County to impose any tax, fee, or assessment of general applicability. By way of illustration and not limitation, to the extent permitted by applicable law, the County may impose a tax, fee, or other assessment on any Person (other than the Grantee) with respect to Cable Service or other communications service provided by such Person over a Cable System for which charges are assessed to Customers but not received by the Grantee. B. The Franchise Fee payments required by this Section shall be in addition to any and all taxes, fees or charges which the Grantee shall be required to pay to the County or to any state or federal agency or authority, except to the extent that such taxes, fees or charges must be considered Franchise Fees pursuant to 47 U.S.C. 542 SECTION 8 Oversight and Regulation by Franchising Authority 8.1. Oversight of Franchise. In accordance with applicable law, the Franchising Authority shall have the right to oversee, regulate and on reasonable prior written notice and in the presence of Grantee, periodically inspect the construction, operation and maintenance of the Cable System in the Franchise Area, and all parts thereof, as necessary to monitor Grantee?s compliance with the provisions of this Franchise Agreement. 8.2. Technical Standards. The Grantee shall comply with all applicable technical standards of the FCC. To the extent those standards are altered, modi?ed, or amended during the term of this Franchise, the Grantee shall comply with suCh altered, modified or amended standards as provided by applicable law. The Franchising Authority shall have the right to obtain, upon written request, a copy of the tests and records performed pursuant to the rules. 8.3. Operational Records. The Grantee shall maintain the records required to compute all operational and customer service compliance measures outlined in this Franchise to demonstrate that the measures are being met. Failure to maintain the records as required herein shall subject the Grantee to the liquidated damages established in this Franchise Agreement. 8.4. Records Required: Grantee shall at times maintain and upon request provide the following: 8.4.1. Records of all written complaints for a period of one year after receipt by Grantee. The term ?complaint? as used herein refers to complaints about any aspect of the Cable System or Grantee?s cable operations, including, without limitation, complaints about employee courtesy. Complaints recorded will not be limited to complaints requiring an employee service call; 10 8.4.2. Records of Service Interruptions for a period of one year after occurrence, indicating date, duration, area, and the number of Customers affected, type of outage, and cause; 8.4.3. Records of service calls for repair and maintenance for a period of one year after resolutionby Grantee; 8.4.4. Records of installation/reconnection for a period of one year after the request was ful?lled by Grantee; and 8.5. Federal Communications (FCC) Testing: Within fourteen (14) days of a written request by the County, Grantee shall make available the results of its FCC proof of performance tests required by the rules. 8.6. File for Public Inspection. Throughout the term of this Franchise Agreement, the Grantee shall maintain at its business of?ce, in a ?le available for public inspection during normal business hours, those documents required pursuant to the rules and regulations. 8.7. Upon reasonable written notice to the Grantee and with no less thirty (30) business days? written notice to the Grantee, the County shall have the right to inspect Grantee?s books and records pertaining to Grantee?s provision of Cable Service in the Franchise Area at any time during Normal Business Hours and on a non?disruptive basis, as are reasonably necessary to ensure compliance with the terms of this franchise. Such notice shall speci?cally reference the section or subsection of the Franchise which is under review, so that Grantee may organize the necessary books and records for appropriate access by the County. Grantee shall not be required to maintain any books and records for Franchise compliance purposes longer that the current year plus three (3) years. 8.8. Proprietary Information: 8.8.1. Notwithstanding anything to the contrary set forth herein, Grantee shall not be required to submit information to the County that it reasonably deems to be proprietary or con?dential in nature, nor submit to the County any of its or an af?liate?s books and records not relating to the provision of Cable Service in the Franchise Area, except as provided herein. Such con?dential information shall be subject to the following, to be applied as is most practicable for the purposes of this Agreement: 8.8.1.1. To the extent an exemption under the Virginia Freedom of Information Act permits the County to maintain the con?dentiality of submitted information and the Grantee submits such information to the County, the County shall maintain the confidentiality of such information and not disclose it to any public request; 11 8.8.1.2. To the extent the information provided to an accountant, attorney, consultant, or any other agent of the County (?County Consultant?) would not be subject to public disclosure under the Virginia Freedom of Information Act and the County instructs the Grantee to provide such information to the County Consultant as may be- required by this Agreement, the Grantee shall provide such information to the County Consultant and the County shall not take possession of the information nor engage in any act that would jeopardize the con?dentiality of such information; or 8.8.1.3. Grantee must provide the following documentation to the County: A. Speci?c identi?cation of the information; B. Statement attesting to the reason(s) the Grantee believes the information is con?dential; and C. Statement that the documents are available at the Grantee?s designated of?ces for inspection by the County. 8.8.2. At all times, the County shall take reasonable steps to protect the proprietary and con?dential nature of any books, records, maps, plans, or other County-requested documents that are provided pursuant to this Franchise Agreement to the extent they are designated as such by the Grantee. Nothing in this Section shall be read to require the Grantee to violate Federal or State Law protecting Customer privacy. 8.9. Annual Reports. The Grantee shall submit the following reports: 8.9.1. Service Availability Report. No later than ninety (90) days after the end of the calendar year, Grantee shall submit a written report to the County which lists the addresses where cable service was made available during the preceding year; 8.9.2. Customer Service Reports. Upon request by the County, no later than ninety (90) days after the end of the calendar year, the Grantee shall submit a written report to the County regarding complaints and service requests received by each call center serving the Franchise Area, containing such categories of information as the Grantee records in the normal course of business, which shall include: 8.9.2.1. A report showing the number of services calls received by type; 8.9.2.2. A report showing the number of outages that exceed one hour in duration. 8.9.2.3. A report showing the Grantee?s performance with respect to Section 6 of this Franchise Agreement, signed by an of?cer or employee certifying its performance with these customer service standards. Included in this report will be the following information; 12 A. Percentage of telephone calls that were answered within thirty (30) seconds; B. Percentage of telephone calls received that were abandoned before being answered by a live operator; C. Average hold time for telephone calls received; D. Percentage of time when all incoming trunk lines were in a busy condition; E. Percentage of standard installations performed within seven (7) business days; and F. Percentage of repair calls for Service Interruptions responded to within 24 hours. 8.9.3. The Grantee shall submit to the County copies of each petition, application, report and communication that directly and materially affects the provision of Cable Service within the Franchise Area that are transmitted by the Grantee to any federal, state, or other regulatory commissions, agencies or courts. 8.10. Maintenance of Books, Records, and Files. 8.10.1. Books and Records. Throughout the term of this Franchise Agreement, the Grantee agrees that the County, upon reasonable prior written notice to the Grantee, may review such of the Grantee?s books and records regarding the operation of the Cable System and the provision of Cable Service in the Franchise Area which are reasonably necessary to monitor Grantee?s compliance with the provisions of this Franchise Agreement at the Grantee?s business of?ce, during normal business hours, and without unreasonably interfering with Grantee?s business operations. Such books and records shall include any records required to be kept in a public ?le by the Grantee pursuant to the rules and regulations of the FCC. All such documents pertaining to ?nancial matters that may be the subject of an inspection by the County shall be retained by the Grantee for a minimum period of three (3) years. 8.10.2. File for Public Inspection. Throughout the term of this Franchise Agreement, the Grantee shall maintain at its business of?ce, in a ?le available for public inspection during normal business hours, those documents required pursuant to the rules and regulations. 8.1023. Proprietary Information. Notwithstanding anything to the contrary set forth in this Section, the Grantee shall not be required to disclose information which it reasonably deems to be proprietary or con?dential in nature. The County agrees to treat any information disclosed by the Grantee as con?dential and only to disclose it to those employees, representatives, and agents of the County that have a need to know in order to enforce this Franchise Agreement and who agree to maintain the con?dentiality of all such information. The Grantee shall not be required to provide Customer information in violation of Section 631 of the Cable Act or any other applicable federal or state privacy law. For purposes of this Section, the terms ?proprietary or con?dential? include, but are not limited to, information relating to the Cable System design, customer 13 lists, marketing plans, ?nancial information unrelated to the calculation of franchise fees or rates pursuant to FCC rules, or other information that is reasonably determined by the Grantee to be competitively sensitive. In the event that the County receives a request under a state ?sunshine,? public records or similar law for the disclosure of information the Grantee has designated as con?dential, trade secret or proprietary, the County shall notify Grantee of such request and cooperate with Grantee in opposing such request. SECTION 9 Transfer or Change of Control of Cable System or Franchise 9.1. Neither the Grantee nor any other Person may Transfer the Cable System or the Franchise without the prior written consent of the Franchising Authority, which consent shall not be unreasonably withheld or delayed. - Within thirty (30) days of receiving a request for consent, the Franchising Authority shall, in accordance with FCC rules and regulations, notify the Grantee in writing of the additional information, if any, it requires to determine the legal, ?nancial and technical quali?cations of the transferee or new controlling party. If the Franchising Authority has not taken action on the Grantee?s request for consent within one hundred twenty (120) days after receiving such request, consent shall be deemed given. SECTION 10 - Insurance and- Indemnity 10.1. Insurance. Throughout the term of this Franchise Agreement, the Grantee shall, at its own cost and expense, maintain Comprehensive General Liability Insurance and provide the Franchising Authority certi?cates of insurance designating the Franchising Authority and its of?cers, boards, commissions, councils, elected of?cials, agents and employees as additional insureds and demonstrating that the Grantee has obtained the insurance required in this Section. Such policy or policies shall be in the minimum amount of One Million Dollars for bodily injury or death to any one person, and One Million Dollars for bodily injury or death of any two or more persons resulting from one occurrence, and One Million Dollars for property damage resulting from any one accident. Such policy or policies shall be .non-cancelable except upon thirty (30) days prior written notice to the Franchising Authority. The Grantee shall provide workers? compensation coverage in accordance with applicable law. The Grantee shall indemnify and hold harmless the Franchising Authority from any workers compensation claims to which the Grantee may become subject during the term of this Franchise Agreement. 10.2. Indemni?cation. The Grantee shall indemnify, save, defend, and hold harmless the County, its agents, servants, of?cials and employees, at all times from damages arising out of the installation, operation or maintenance of the Cable System authorized by the Franchise. In the event suit shall be ?led against the County or Board or its agents, servants, of?cials or employees either independently or jointly with the Grantee to recover for any claim or damages, the Grantee, upon prompt notice to it by the Board, shall defend the Board, County, or its agents, servants, of?cials, or employees, as the case may be, against the action. 14 SECTION 11 System Description and Service 11.1. System Capacity. During the term of this Agreement, the Grantee?s Cable System shall be capable of providing a minimum of 80 channels of video programming available to its Customers in the Franchise Area and shall have activated bandwidth equivalent to at least 80 NTSC channels. 11.2. Service to Governmental. Schools and Institutional Facilities. The Grantee shall provide free ?Basic? and ?Expanded Basic? tier Cable Service, and free installation at one outlet to each municipal building and to each public and private school, not including ?home in the Franchise Area. The excess cost for extending service to buildings not within 150 feet of the Grantee?s distribution cable shall be paid by the Franchising Authority, and the Grantee shall not be obliged to provide such service and installation if the Franchising Authority does not pay such excess cost. ?Municipal buildings? are those buildings owned or leased by the Franchising Authority for government administrative purposes, and shall not include buildings owned by Franchising Authority but leased to third parties or buildings such as storage facilities at which government employees are not regularly stationed. For purposes of this subsection, ?Expanded Basic? shall mean that tier of Cable Service just above the most basic level of service offered by the Grantee. 11.3. Additional Service Drops and Outlets. At the County?s request, the Grantee shall provide additional service drops and outlets to sites speci?ed in Sections 11.2 at the Grantee?s actual incremental cost for installation, without charges for service, although charges for any necessary equipment may apply. 11.4. Digital Converter. In the event the Grantee converts the delivery of Cable Service to an all-digital format, and in order to facilitate continued reception of Cable Service at County facilities, the Grantee shall at that time provide a digital converter unit to each site specified in Section 11.2. SECTION 12 - Enforcement of and Termination of Franchise 12.1. Notice of Violation or Default. In the event the Franchising Authority believes that the Grantee has not complied with the material terms of the Franchise, it shall notify the Grantee in writing with specific details regarding the exact nature of the alleged noncompliance or default. 12.2. Grantee?s Right to Cure or Respond. The Grantee shall have forty-?ve (45) days from the receipt of the Franchising Authority?s written notice: (A) to respond to the Franchising Authority, contesting the assertion of noncompliance or default; or (B) to cure such default; or (C) in the event that, by nature of the default, such default cannot be cured within the forty-?ve (45) day period, initiate reasonable steps to remedy such default and notify the Franchising Authority of the steps being taken and the projected date that they will be completed. 15 12.3. Public Hearings. In the event the Grantee fails to respond to the Franchising Authority?s notice or in the event that the alleged default is not remedied within forty-?ve (45) days or the date projected by the Grantee, the Franchising Authority shall schedule a public hearing to investigate the default. Such public hearing shall be held at the next regularly scheduled meeting of the Franchising Authority that is scheduled at a time that is no less than ten (10) business days therefrom. The Franchising Authority shall notify the Grantee in writing of the time and place of such meeting and provide the Grantee with a reasonable opportunity to be heard. 12.4. Enforcement. Subject to applicable federal and state law, in the event the Franchising Authority, after such public hearing, determines that the Grantee is in default of any provision of the Franchise, the Franchising Authority may: A. Seek speci?c performance of any provision that reasonably lends itself to such remedy as an alternative to damages, or seek other equitable relief; B. Seek liquidated damages, in accordance with Section 12.7 hereof; or C. 'In the case of a substantial default of a material provisiOn of the Franchise, declare the Franchise Agreement to be revoked in accordance with the following: 1. The Franchising Authority shall give written notice to the Grantee of its intent to revoke the Franchise on the basis of a pattern of noncompliance by the Grantee, including one or more instances of substantial noncompliance with a material provision of the Franchise. The notice shall set forth with speci?city the exact nature of the noncompliance. The Grantee shall have ninety (90) days from the receipt of such notice to object in writing and to state its reasons for such objection. In the event the Franchising Authority has not received a response from the Grantee or upon receipt of a response that does not agree with the Grantee?s proposed remedy, it may then seek termination of the Franchise at a public hearing. The Franchising Authority shall cause to be served upon the Grantee, at least ten (10) days prior to such public hearing, a written notice specifying the time and place of such hearing and stating its intent to request termination of the Franchise. 2. At the designated hearing, the Franchising Authority shall give the Grantee an opportunity to state its position on the matter, present evidence and question witnesses, after which it shall determine whether or not the Franchise shall be revoked. The public hearing shall be on the record and a written transcript shall be made available to the Grantee within ten (10) business days. The decision of the Franchising Authority shall be in writing and shall be delivered to the Grantee by certi?ed mail. The Grantee may appeal such determination to an appropriate court, which shall have the power to review the decision of the Franchising Authority ?de novo? and to modify or reverse such decision as justice may require. Such appeal to the appropriate court must be taken within sixty (60) days of the issuance of the determination of the Franchising Authority. 16 12.5. Technical Violation. The Franchising Authority agrees that it is not its intention to subject the Grantee to penalties, ?nes, forfeitures or revocation of the Franchise for so?called ?technical? breach(es) or violati0n(s) of the Franchise, which shall include, but not be limited, to the following: A. In instances or for matters where a violation or a breach of the Franchise by the Grantee was a good faith error that resulted in no or minimal negative impact on the Customers within the Franchise Area; or B. Where there existed circumstances reasonably beyond the control of the Grantee and which precipitated a violation by the Grantee of the Franchise, or which were deemed to have prevented the Grantee from complying with a term or condition of the Franchise. 12.6. Letter of Credit. The Grantee shall obtain and maintain during the entire term of the Franchise, and any renewal or extensions thereof, an irrevocable letter of credit from a ?nancial institution licensed to do business in Virginia in the-amount of ?fty thousand dollars to ensure the Grantee's faithful performance of its obligations. 12.6.1. The Grantee shall obtain the reasonable approval of the County for the language of the letter of credit before it is obtained. The Grantee shall ?le with the County a complete copy of the letter of credit (including all terms and conditions applying to the bond or to draws upon it) prior to its effective date, and keep such copy current with respect to any changes over the life of the Grantee. 12.6.2. The letter of credit shall not contain language requiring that in the event of any default a notice to the surety must be given within a speci?ed period of time. 12.6.3. No later than thirty (30) days after mailing of noti?cation to the Grantee by certi?ed mail, return receipt requested, of a withdrawal from the letter of credit, the Grantee shall restore the letter of credit to the total amount speci?ed herein. 12.7 Liquidated Damages. Because the Grantee's failure to comply with provisions of the Franchise and this Franchise Agreement will result in injury to the County, and because it is and will be impracticable to determine the actual amount of such damage in the event of delay or nonperformance, the County and the Grantee agree to the following liquidated damages for the following violations of the Franchise and of this Agreement. On an annual basis from the Effective Date of the Franchise, liquidated damages in total will not exceed ten thousand dollars ($10,000) (the ?Liquidated Damages Cap?). 17. Breach Failure to comply with PEG Access requirements Failure to render Franchise Fee payments due to the County (0) Violation of Customer Protection Standards Failure to supply information, reports, or ?lings lawfully required Liquidated Damages $200.00 for each Violation for each day the violation continues, in addition to any monetary payment due. Three ?tenths of one percent of the unpaid amount for each day the violation continues, in addition to any monetary payment due. $200.00 for each violation for each day the violation continues, in addition to any monetary payment due, except where compliance is measured quarterly, in which case damages shall be as speci?ed in Section 12.7.1 hereof. $200.00 for each violation for each day the violation continues. 12.7.1. For Customer Protection Standards with which compliance is measured on an annual basis, liquidated damages shall be assessed as follows: A. If the Grantee does not meet the prescribed standard in a given annual measuring period, the Grantee shall be liable for liquidated damages in the following amounts: $1000.00 for each year in which such standards were not met if the failure was by less than $2000.00 for each year in which such standards were not met if the failure was by 5% or more but less than 15%; and $4000.00 for each year in which such standards were not met if the failure was by 15% or more. 12.7.2. Payment by the Grantee of liquidated damages shall be due thirty (30) days after the date of the County?s notice assessing such damages, after following the procedures set forth in Sections 12.1 to 12.3 hereof. If the Grantee does not make payment within that period, the County may withdraw from the Grantee?s letter of credit the amount assessed, pursuant to the procedures set forth in Section 12.6 hereof.- 18 12.8. Rights Cumulative. The rights reserved to the County herein are in addition to all other rights of the County, whether reserved herein or authorized by applicable law. No action, proceeding, or exercise of a right with respect to the letter of credit will affect any other right the County may have. Neither the letter of credit, nor the receipt of any damages recovered by the County thereunder, shall be construed to excuse faithful performance by the Grantee or limit the liability of the Grantee under the terms of its Franchise for damages, either to the full amount of the letter of credit or otherwise. SECTION 13 Miscellaneous Provisions 13.1. Force Majeure. The Grantee shall not be held in default under, or in noncompliance with, the provisions of the Franchise, nor suffer any enforcement or penalty relating to noncompliance or default (including termination, cancellation or revocation of the Franchise), provided that the Grantee takes immediate and diligent steps to bring itself back into compliance and to comply as soon as possible under the circumstances with the Agreement without unduly endangering the health, safety, and integrity of the Grantee?s employees or property, or the health, safety, and integrity of the Grantee?s employees or property, or the health, and integrity of the public, Public' Way, public property, or private property, where such noncompliance or alleged defaults occurred or were caused by strike, riot, war, earthquake, ?ood, tidal wave, unusually severe rain or snow storm, hurricane, tornado or other catastrophic act of nature, labor disputes, failure of utility service necessary to operate the Cable System, governmental, administrative or judicial order or regulation or other event that is reasonably beyond the Grantee?s ability to anticipate or control. This provision also covers work delays caused by waiting for utility providers to service or monitor their own utility poles on which the Grantee?s cable or equipment is attached, as well as unavailability of materials or quali?ed labor to perform the work necessary where such unavailability is reasonably beyond the Grantee?s ability to anticipate or control. 13.2. Notice. All notices shall be in writing and shall be suf?ciently given and served 'upon the other party by hand delivery, ?rst class mail, registered or certi?ed, return receipt requested, postage prepaid, or by reputable overnight courier service and addressed as follows: To the Franchising Authority: County Administrator Goochland County P.O. Box 10 Goochland VA 23063 With a copy to: Of?ce of the County Attorney Goochland County 19 PO. Box 10 Goochland VA 23063 To the Grantee: Comcast 5401 Staples Mill Road Richmond VA 23228 Attn: Director, Government Affairs And to: Comcast Cable Communications, Inc. 1301 McCormick Drive, 4?h Floor Largo, MD 20774 Attn.: VP, Government Affairs The Grantee shall at all times keep the County advised as to which individual(s) are authorized to act on behalf of the Grantee and whose acts will be considered to bind the Grantee. 13.3. Entire Agreement. This Franchise Agreement, including all Exhibits, embodies the entire understanding and agreement of the Franchising Authority and the Grantee with respect to the subject matter hereof and supersedes all prior understandings, agreements and communications, whether written or oral. 13.4. Severability. If any section, subsection, sentence, clause, phrase, or other portion of this Franchise Agreement is, for any reason, declared invalid, in whole or in part, by any court, agency, commission, legislative body, or other authority of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent portion. Such declaration shall not affect the validity of the remaining portions hereof, which other portions shall continue in full force and effect. If the Grantee believes that the terms of the Franchise Agreement or any County law or regulation con?ict with any state or federal law or regulation, the Grantee shall notify the Franchise Authority immediately upon learning of the con?ict. 13.5. Governing Law. This Franchise Agreement shall be deemed to be executed in the Commonwealth of Virginia, and shall be governed in all respects, including validity, interpretation and effect, and construed in accordance with, the laws of the Commonwealth of Virginia, as applicable to contracts entered into and performed entirely within the Commonwealth and the venue for any litigation with respect thereto shall be in the Circuit Court for Goochland County, Virginia, or the Federal District Court with jurisdiction over Goochland County. The provisions of this paragraph shall control over any contrary provisions in the contract documents. The Grantee shall comply with applicable federal, state and local laws and regulations. 20 13.6. Modi?cation. No provision of this Franchise Agreement shall be amended or otherwise modi?ed, in whole or in part, except by an instrument, in writing, duly executed by the Franchising Authority and the Grantee, which amendment shall be authorized on behalf of the Franchising Authority through the adoption of an appropriate resolution or order by the Franchising Authority, as required by applicable law. 13.7. No Third-Party Bene?ciaries. Nothing in this Franchise Agreement is or was intended to confer third-party bene?ciary status on any member of the public to enforce the terms of this Franchise Agreement. 13.8. No Waiver of Rights. Nothing in this Franchise Agreement shall be construed as a waiver of any rights, substantive or procedural, either party may have under federal or state law unless such waiver is expressly stated herein. 13.9. Binding Acceptance. This Agreement shall bind and bene?t the parties hereto and their respective heirs, bene?ciaries, administrators, executors receivers, trustees, and the promises and obligations herein shall survive the expiration date hereof. 13.10. Each Party bears its own cost. Unless otherwise expressly provided in this Agreement, all acts that the Grantee is required to perform must be performed at Grantee?s own expense. Unless otherwise expressly provided in this Agreement, all acts that the County is required to perform must be performed at the County?s own expense. 13.11. No Evasion. The Grantee shall not take any action to evade any provision of this Agreement. This provision shall be read to prohibit, among other things, the Grantee from requiring any Customer to waive any right (including without limitation privacy rights) as a condition of obtaining Cable Service. 13.12. Time of Essence. In determining whether the Grantee has substantially complied with this Agreement, the parties agree that time is of the essence. 13.13. Captions and References. The captions and headings of Sections throughout this Agreement are intended solely to facilitate reading and reference to the Sections and provisions of this Agreement. Such captions shall not affect the meaning or interpretation of this Agreement 13.14. Understanding and Consent. This Agreement is freely and voluntarily given by each of the parties, without any duress or coercion, and after each party has consulted with its counsel. Each party and its counsel have participated fully in the review and revision of this Agreement, and any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in interpreting this Agreement. Each party hereto has carefully and completely read all of the terms and provisions of this Agreement, and acknowledges that, to the best of its knowledge, each provision is law?il and enforceable. 21 IN WITNESS WHEREOF, this Franchise Agreement has been executed by the duly authorized representatives of the parties as set forth below, as of the date set forth below: Att t: Goochland County: I ALE) By: (DiCth Name: T1 Di @155: CW Title: Ad rmml'i?lTL. (21/ Comcast of Massachusetts/Virginia, Inc. Attest: . M4 By: (W I Name: 77/0/[745 goog/fL/N ppmvedgt: me: . Title: 5871/!014 P. County AttoVeN Dated: June 9, 2011 22