Chapter 19: Rules and Regulations/Cablevision Services

Sec. 19-1. Purpose - Short Title

a. That pursuant to the provisions of Chapter 19 of the Municipal Code of the Village of Durand, Illinois
regarding rules and regulations for the control and offering of cablevision services, the Village of
Durand does hereby approve and consent to the transfer of all cable systems and to the transfer of the
cable franchise with the Village of Durand, Illinois by Triax Cablevision.

b. That in conformity with and to implement to provisions of Section 1 of this ordinance the following
sections of Chapter 19 of the Municipal Code of Durand, Illinois are hereby amended:

Sec. 19-2. Definitions

For the purpose of this chapter, the following terms, phrases, words, and derivations shall have the meaning
given in this section. When not inconsistent with the context, words used in the present tense include the future,
words in the plural number include the singular number, and words in the singular number include the plural
number. The word "shall" is always mandatory and not merely directory.

a. Company means Triax Cablevision, 1102 North Fourth Street; P.O. Box 334; Chillicothe, IL. 61523 -
0334, the grantee of rights under the regulatory ordinance codified in this chapter. Any other firm
granted a cable television franchise in the Village of Durand would also be governed by this chapter.

b. Federal Communications Commission or FCC means that federal agency constituted by the
Communications Act of 1934 as amended.

c. Gross Subscriber Revenues means only those revenues derived from the monthly service charges
paid by subscribers for basic service and premium service, located within the Village for regular cable
television reception services, which service includes only the transmission of broadcast signals and the
programming presented on the required access and originations channels, if any. Gross subscriber
revenues shall not include any revenues received as installation charges and fees for reconnections,
inspection, repairs or modifications of any installments. At such time in the future as company may add
charged-for services, company shall first secure consent of Village; the inclusion of such additional
charged-for services within the definition of "Gross subscriber revenues" as defined by this paragraph
shall be subject to negotiation by the parties.

d. Person means any person, firm, partnership, association, corporation, company, or organization of any
kind.

e. System means the lines, fixtures, equipment, attachments and all appurtenances thereto which are used
in the construction, operation and maintenance of the community antenna television system authorized
by this chapter.

Sec. 19-3. Findings - Granting of Franchise

The regulatory ordinance codified in this chapter which grants to Triax Cablevision the nonexclusive right
to construct, operate, and maintain a cable television system in the Village, was passed and adopted by the
President and Board of Trustees after a full, open and public proceeding. Said proceeding was held after public
notice was given and afforded all interested parties the opportunity to comment upon the legal, character,
financial, technical, and other qualifications of the company. Having received at said proceeding all comments
regarding the qualifications of the company, the Village finds that the company possesses the necessary legal,
technical, character, financial and other qualifications and that the company's construction arrangements are
adequate and feasible. Therefore the Village grants to the company a nonexclusive franchise, right and privilege
to construct, erect, operate, modify and maintain, in, upon, along, across, above and over and under the
highways, streets, alleys, and sidewalks, public ways and public places now laid out or dedicated and all
extensions thereof, and additions thereto, in the Village, poles, wires, cables, underground conduits, manholes
and other television conductors and fixtures necessary for the purpose of distributing television and radio
signals, and other electronic impulses in order to furnish television and radio programs, and various
communications and other electronic services to the public. The right so granted includes the right to use and
occupy said streets, alleys, public ways and public places and all manner of easements for the purpose set forth
in this chapter.

Sec. 19-4. Compliance - Required Generally

The company shall, at all times during the life of the regulatory ordinance codified in this chapter, be
subject to all lawful exercise of the policy power by the Village and to such reasonable regulation as the Village
shall hereafter by resolution or ordinance provide. The construction, operation and maintenance of the system
by the company shall be in full compliance with such portions of the National Electric Safety Code as may be
applicable and as the same may be amended and revised from time to time, and in full compliance with all other
applicable rules and regulations now in effect or hereinafter adopted by the Federal Communications
Commission, the Village, or any other agency of the state or the United States, which may hereafter acquire
jurisdiction of the operations of the company authorized in this chapter. The company will provide a 35-channel
capacity system, with a minimum of 18 channels active at outset through a block converter approach.

Sec. 19-5. Compliance - National Electrical Safety Code

All facilities and equipment of the company shall be constructed and maintained in accordance with the
requirements and specifications of the National Electrical Safety Code and such applicable ordinances and
regulations set forth by the Village and-or any local, state or federal agencies.

Sec. 19-6. Compliance - FCC Rules and Regulations

The company shall, at all times, comply with the rules and regulations governing CATV operations
promulgated by the FCC, specifically those set out in section 76.31 of the FCC Rules and Regulations. This
shall include adherence by the company to FCC rules regarding technical and engineering specifications
involved in the construction of the CATV system and signal carriage therein.

Sec. 19-7. Modification of FCC Rules

Consistent with the requirements of Rule 76.31 (a) (6) of the FCC, any modification of Rule 76.31 resulting

from amendment thereto by the FCC and shall be incorporated in this chapter by specific amendments thereto
by the lawful action of the Village Board within one year from the effective date of notice by grantee of the
FCC's amendment, or at the time of renewal of the ordinance codified in this chapter, whichever occurs first.

Sec. 19-8. Transfer

The company shall not sell or transfer its system to another, nor transfer any rights under this chapter to
another without written approval by the Village; provided, that such approval shall not be unreasonably
withheld if the vendee, assignee or lessee has filed with the appropriate official of the Village an instrument
duly executed, reciting the fact of such sale, assignment or lease, accepting the terms of this chapter and
agreeing to perform all conditions thereof, together with proof of capability of performance.

Sec. 19-9. Company Rules and Regulations

The company shall have the authority to promulgate such rules, regulations terms and conditions governing
the conduct of its business as shall be reasonably necessary to enable the company to exercise its rights and
perform its obligations under this chapter, and to assure an uninterrupted service to each and all of its
customers; provided, however, that such rules, regulations, terms and conditions shall not be in conflict with the
provisions hereof or of federal and state laws.

Sec. 19-10. Franchise - Term

The franchise granted the company in this chapter shall terminate fifteen years from date of grant, subject to
renewal for periods of reasonable duration, on the same, such different or additional terms and conditions as
may be lawfully specified by the Village Board and as are consistent with the requirements of Rule 76.31 of the
FCC.

Sec. 19-11. Franchise - Renewal

No renewal of the ordinance codified in this chapter shall be effective except pursuant to a public
proceeding and any other proceedings in which its rights, privileges or interest would be affected and shall be
fully entitled to such due process rights as may be available under applicable laws, ordinances, rules and
regulations.

Sec. 19-12. System Construction Maintenance and Procedures

a. Upon grant of the ordinance codified in this chapter to construct and maintain a cable television system
in the Village, and in furtherance of the company's execution of contracts with public utility companies
or any other owner or lessee of any poles located within or without the Village to whatever extent such
contract or contracts may be expedient and of advantage of the company for use of poles and posts
necessary for proper installation of the system, the company may obtain right -of-way permits from
appropriate state, county, and federal officials necessary to cross highways or roads under their
respective jurisdictions to supply main trunk lines from the company's receiving antennas, obtain
permission from the Federal Aviation Authority to erect and maintain antennas suitable to the needs of
the system and its subscribers and obtain whatever other permits a Village, City, County, State or
federal agency may require. The company shall construct its cable system using material of good and
durable quality, and all work involved in the construction, installation, maintenance and repair of the
cable system shall be performed in a safe, thorough, and reliable manner. Any municipal property

damaged or destroyed shall be promptly repaired or replaced by the company and restored to at least as
good condition as before the damage or destruction.

b. The company's system, poles, wires, and appurtenances shall be located, erected and maintained so that
none of its facilities shall endanger or interfere with the lives of persons, or interfere with any
improvements the Village may deem proper to make, or unnecessarily hinder or obstruct the free use of
the streets, alleys, bridges, easements or public property.

c. However, in the event that the Village annexes further territory as authorized by law, the company shall
extend energized trunk cable to the remaining portions of the Village so annexed within one year
thereafter, unless additional time is granted by the Village Board upon request of the company for good
cause shown.

d. All transmission and distribution structures, lines and equipment erected by the company within the
Village shall be so located as to cause minimum interference with the property use of streets, alleys and
other public ways and places, and to cause minimum interference with the rights or reasonable
convenience of property owners who adjoin any of the said streets, alleys, or other public ways and
places. In the event electrical and phone lines are buried to the subscriber's residence, the company
shall be required to also bury the cable.

e. In case of any disturbance of pavement, sidewalk, driveway, grass or other surfacing, the company
shall, at its own cost and expense and in a manner approved by the Village, replace and restore all
paving, sidewalk, driveway, grass or surface of any street or alley or other public or private property in
as good condition as before said work was commenced.

f. In the event that at any time during the period of the ordinance codified in this chapter the Village
lawfully elects to alter, or change the grade of any street, alley or other public way, the company, upon
reasonable notice by the Village, shall remove, relay, or relocate its poles, wires, cables, underground
conduits, manholes and other fixtures at its own expense.

g. The company shall not place poles or other fixtures where the same will interfere with any gas, electric
or telephone fixture, water hydrant or main, and all such poles, or other fixtures placed in any street
shall be placed at the outer edge of the sidewalk and inside the curb lines, and those placed in alleys
shall be placed close to the line of the lot abutting on said alley, and then in such manner as not to
interfere with the usual travel on said streets, alleys and public ways.

h. The company shall, on the request of any person holding a building moving permit issued by the
Village, temporarily raise or lower its wires to permit the moving of buildings. The expense of such
temporary removal, raising or lowering of wires shall be paid by the person requesting the same, and
the company shall have the authority to require such payment in advance. The company shall be given
not less than forty-eight hours advance notice to arrange for such temporary wire changes.

i. The company shall have the authority to trim trees upon the overhanging streets, alleys, sidewalks, and
public places of the Village so as to prevent the branches of such trees from coming in contact with the
wires and cables at the direction of the Village and at the expense of the company, all trimming to be
done under the supervision and direction of the Village and at the expense of the company.

j. The company shall provide, upon request and without charge, service to any municipal buildings

owned and operated by the Village and to any public or parochial elementary or secondary school. This
shall mean only an energized cable to such building. The cost of any internal wiring shall be borne by
the institution.

Sec. 19-13. Construction Schedule

The company shall complete construction within one year after passage of this ordinance, and shall
thereafter make cable service available to all residents of the Village

Sec. 19-14. Line Extensions

a. It shall be the obligation of the company to serve all residents of the Village. Service shall be provided
to any territory annexed by the Village at normal installation charges and monthly rate when there is an
average of forty (40) homes per each linear mile of new cable construction.

b. In the event the requirements of subsection A are not met, extensions of service shall be required only
on a basis which is reasonable and compensatory.

Sec. 19-15. Village Rights

A. VILLAGE RULES. The right is reserved to the Village to adopt, in addition to the provisions
contained in this chapter and existing applicable ordinances, such additional regulations as it shall find
necessary in the exercise of the police power; provided, that such regulations, by ordinance or
otherwise, shall be reasonable and not in conflict with the rights granted in this chapter, and shall not be
in conflict with the applicable laws of the state or the United States.

B. USE OF THE SYSTEM BY VILLAGE. The Village shall have the right, during the life of the
ordinance codified in this chapter, of maintaining upon the poles or in the underground conduits of the
company within the Village limits wire and fixtures necessary for a traffic signal control system and-or
a police and fire alarm system. Such wires and fixtures shall be installed and maintained at the sole
expense of the Village and shall at all times comply with all reasonable rules and regulations of the
company so that there may be a minimum danger of contact or conflict between the wires and fixtures
of the company and wires and fixtures used by the Village.

C. EMERGENCY OR DISASTER. In the case of any emergency or disaster, the company, shall upon
request of the Village make available its facilities to the Village for emergency or disaster.

D. LIABILITY. The Village shall not be liable for any damage occurring to the property of the company
caused by employees of the Village in the performance of their duties, except for damage caused to the
company's facilities by the negligence of the Village employees. The Village shall not be liable for the
interruption of service by actions of Village employees in the performance of their duties, nor shall the
Village be held liable for the failure of the company to be able to perform normal services due to the
acts of God or other factors beyond the control of the Village.

E. NO PROPERTY RIGHT. Nothing in this chapter shall grant to the company any right of property in
the Village -owned property, nor shall the Village be compelled to maintain any of its property any
longer than, or in any fashion other than in the Village's judgment its own business or needs may
require.

F. CONSTRUCTION APPROVAL BY VILLAGE. Except for individual service drops, the company
shall not erect any pole, install any underground lines or conduits, run any line, make any attachment,
nor shall any construction of any kind be commenced without the prior approval of the director of
engineering or appropriate department of the Village, which approval shall not be unreasonably
withheld, and the Village shall have and maintain the right to inspect the construction, operation and
maintenance of the system by the company to insure the proper performance of the terms of the
regulatory ordinance codified in this chapter. Upon completion of construction, grantee shall provide
accurate maps of all existing installations.

G. CORRECTION OF DEFECTS. In the event the company should violate any of the terms of the
regulatory ordinance codified in this chapter, or any of the rules and regulations as may be from time to
time lawfully adopted, the Village shall immediately give to the company thirty days' written notice to
correct such violation, and in the event the company does not make such written notice, the Village
may make such correction itself and charge the cost of the same to the company, and the company shall
pay such charges within thirty days after the receipt of a statement for such charge from the Village.

Sec. 19-16. Publication and Legal Costs

The company shall assure the costs of the publication of the ordinance codified in this chapter as such
publication is required by law, and legal costs connected with granting of franchise. A bill for publication and
legal costs shall be presented to the company by the appropriate Village officials upon the company's filing of
its acceptance of the ordinance codified in this chapter and the said publication and legal costs shall be paid at
that time by the company.

Sec. 19-17. Payment to the Village

a. The company shall at the date of the first service, and during each year of operation under this chapter,
pay to the Village five (5) percent of the annual gross subscriber revenues as defined in Section 2(c),
rendered to customers located within the Village. At the time of this payment, the company shall
furnish the Village with an operating report showing the company's annual gross subscriber revenues
during the preceding year and such other information as the Village shall reasonably require with
respect to properties and expense related to the company's services within the Village for such period.

b. All payments as required by the company to the Village shall be made semi -annually and shall be due
forty-five days after the close of the six-month period.

Sec. 19-18. Services, Rates and Charges - Designated

A. Minimum initial service shall be provided as follows:

"Basic" Service:

Program/Service Location Affiliation
All regularly viewed
off-air stations
Rockford,
Madison,
Davenport
ABC, CBS,
NBC,
Independent
Educational.

WGN-TV (24 Hrs.) Chicago Independent
WTBS-TV (24 Hrs.) Atla Independent
ESPN (24 Hrs.) Bristol,
Conn.
Entertainment &
Sports
Programming
Network
USA Network
(includes "Calliope"
Children's Service;
"C-SPAN" House of
Representatives
Coverage; "English
Channel" Madison
Square Garden Sports;
Thursday Night
Baseball;
Latest Health and
Women's News.)
New York,
N.Y.
UA/Columbia,
Time, Inc.
Cable News Network
(CNN) (24 Hrs.)
Atlanta Turner
Broadcasting
Christian Broadcasting
Network (CBN) (24-
Hr)
Cable Health News
MTV
Va. Beach,
VA
CBN
Nickelodeon/"A.R.T.S."
Children's/Fine Arts
Channel
New York,
NY
Warner-Amex
"The Weather Channel"
(24 Hr)
Atlanta Landmark
Communications
"The Music Channel
(24-Hr)
New York Warner-Amex

"Premium" Service: 2 Channels

Program/Service Location Affiliation
Home Box Office .
(HBO) (24-Hr)
New York,
NY
Time, Inc
Cinemax (24-Hr) New York,
NY
Time, Inc
Showtime (24-Hr) New York,
NY
Showtime-
The Movie
Channel, Inc.

No channels or other services may be deleted without prior approval from the Durand Village Board.

"Dowden Communications agrees to provide WOR, New York City, or a comparable station to Village of

Durand at no additional cost when a satellite containing such stations is placed into service within four degrees
(4 degrees) of SATCOM -F3, which is currently servicing Durand. Dowden further agrees to provide such
service within 45 days after it becomes available."

B. The System, in addition to meeting the standards herein set forth, shall be improved from time to time
in recognition of changes in the state of the art in the field of Cable Television and shall continue to be
designed, redesigned, installed, operated and equipment replaced and maintained.

C. Except as otherwise provided in this chapter, the grantee shall have the right, privilege, and authority to
charge the rates and charges fixed in this section to its subscribers for its services.

D. A system turn on single-user rates and charges shall be as follows:

Description:
Service Charges:

1. Installation Charges:

a. Basic $20.00, one -time. Free, if done within first 30 days service is
available to subscriber.

b. Premium $10.00. Free, if done same time as Basic service. Also waived
during first 30 days.

2.

a. Basic Service $8.75 a month

b. Premium Service HBO & Cinemax, $9.00 a month, each service

3. Additional Sets $3.00 month, each set

4. Re-Connect; change in service $10.00

5. Converters $20.00 deposit, returnable to subscriber upon return
of converter to company.

6. Disconnect Charge No charge

7. Parental Lock-Out No charge

8. Multi-Unit Dwellings Charges are same as for individual subscribers, after
permission is granted by owner to wire building.

9. Hospitals, Private Negotiable, reasonable

Health Care Rates based on number Institutions of subscriber
units, not to exceed individual subscriber rates.

10. Commercial Negotiable, not to Establishments exceed individual
subscriber rates.

11. Subscribers paying annually in full in advance will receive one month’s free service.

Sec. 19-19. Rates and Charges - Change

a. For the purpose of this section only those items in 18D. Shall be included.

b. Grantee may increase or decrease the rates for cable television service, provided any increase does not
exceed the increase in the Consumer Price Index for the previous twelve months as determined by the
Bureau of Labor Statistics. The use of the consumer Price Index for the purpose of this paragraph may
be replaced by mutual agreement of the parties at any time by replacing the Index with such other
formula as may be mutually agreed upon. Should grantee wish to increase rates approval shall rest with
the Village Board. Such approval shall not be unreasonably withheld.

c. Before approval of such increase, the Village shall hold public hearing thereon, and shall cause to be
published for two consecutive weeks in a newspaper of general circulation in the Village a public
notice setting forth the proposed rates and charges and the date, time and place of the public hearing. At
such public hearing, any interested party shall have the right to give testimony and present evidence on
the rates and charges proposed.

d. Before instituting any increase grantee will furnish to the Village Board a copy of the new rates and
charges, as well as information regarding Bureau of Labor Statistics figures on the Consumer Price
Index. Such notification shall precede any increase by not less than thirty days and not more than sixty
days.

e. In no event shall rates be increased for a period of two years following award of franchise, no more
frequently than 18-month intervals thereafter.

f. The grantee shall pay all costs and expenses incurred by the Village in connection with said application
and said hearing.

Sec. 19-20. Record Keeping

The company shall keep full, true, accurate and current books of account, which books and records, and all
other pertinent books, records, maps, plans, financial statements and other like materials, shall be made
available for inspection and copying by the Village upon reasonable notice and during normal business hours.

Sec. 19-21. Service Procedures

a. During the term of the ordinance codified in this chapter, and any renewal thereof, the company shall
maintain within the Village a local business office or agent for the purpose of receiving and resolving
all questions regarding the quality of service, equipment, malfunctions and similar matters. The
provisions of this section shall be complied with if company maintains a local business headquarters
office within three miles of the principal coordinates of the Village, which office may be reached by
local, toll-free telephone call, and provides the Village Clerk's office with the name, address and phone

number of a person who will act as the company's agent to receive complaints regarding quality of
service, equipment malfunctions and similar matters. The local office shall be open to receive inquiries
or complaints from subscribers during normal business hours, and in no event less than nine a.m. to
five p.m., Monday through Friday. Any complaints from subscribers shall be investigated and acted
upon, at no charge to the subscriber, as soon as possible, but at least within two business days of their
receipt. The company shall keep a maintenance service log which will indicate the nature of each
service complaint, and date and time it was received, and disposition of said complaint and the time and
date thereof. This log shall be made available for periodic inspection by the Village.

b. The company shall appropriate means, such as a card or brochure, as subscribers are connected or
reconnected to the system, furnish information concerning the procedures for making inquiries and -or
complaints, including the name, address and telephone numbers of the employee or employees or agent
to whom such inquiries or complaints are to be addressed.

Sec. 19-22. Protection or Privacy

a. Grantee shall not permit the transmission of any signal, aural, visual or digital, including "polling" the
channel selection, from any subscriber's premises without first obtaining written permission of the
subscriber. This provision is not intended to prohibit the use of transmission of signals useful only for
the control or measurement of system performance.

b. Grantee shall not permit the installation of any special terminal equipment in any subscriber's premises
that will permit transmission from subscriber's premises of two -way services utilizing aural, visual, or
digital signals without first obtaining written permission from the subscriber.

Sec. 19-23. Program Content Restrictions

In addition to providing basic cable television service consisting of broadcasting, locally originated access,
and automatic signals, the company may offer subscribers optional services on a per -program or per -channel
basis. However, the company, shall not display x -rated motion pictures either as part of its basic cable or pay
cable service.

Sec. 19-24. Employment - Discrimination Prohibited

The grantee shall not refuse to hire, nor discharge from employment, nor discriminate against any person
regarding compensation, terms conditions, or privileges of employment because of sex, race, color, creed, or
national origin. The grantee shall take affirmative action to insure that employees are treated, during
employment, without regard to their sex, race, color, creed, or national origin.

Sec. 19-25. Liability, Indemnification and Insurance

1. HOLD HARMLESS AGREEMENT. Grantee shall indemnify and hold harmless the Village, its
officers, Boards, commissioners, agents and employees, against and from any and all claims, demands,
causes of actions, actions, suits, proceedings, damages (including costs or liabilities of the Village with
respect to its employees) of every kind and nature whatsoever, including but not limited to damages for
injury or death or damage to person or property, and regardless of the merit of any of the same, and
against all liability to others, and against any loss, costs, and expense resulting or arising out of any of
the same, including any attorney fees, accountant fees, expert witness or consultant fees, court costs,

per diem expense, traveling and transportation expense, or other costs or expense for any damages
resulting from the operation, construction or maintenance of the system.

2. DEFENSE OF LITIGATION. Grantee shall at the sole risk and expense of Grantee, upon demand of
the Village, made by and through the Village Attorney, appear in and defend any and all suits, actions,
or other legal proceedings, whether judicial, quasi -judicial, administrative, legislative, or otherwise,
brought or instituted or had by third persons or duly constituted authorities, against or affecting the
Village, its officers, Boards, commissions, agents, or employees, and arising out of or pertaining to the
exercise or the enjoyment of such franchise or the granting thereof by the Village; provided, however,
that Grantee shall not be responsible for the consequences of acts or omissions on the part of the
Village relating thereto.

3. PAYMENT OF CLAIMS. Grantee shall pay and satisfy and shall cause to be paid and satisfied any
judgment, degree, order, directive, or demand rendered, made or issued against Grantee, the Village, its
officers, Boards, commissions, agents, or employees in any of these premises; provided, however, that
Grantee shall not be responsible for the consequences of acts or omissions on the part of the Village,
relating thereto; and such indemnity shall exist and continue without reference to or limitation by the
amount of any bond, policy or insurance, deposit, undertaking or other assurance required hereunder,
provided that neither Grantee nor Village shall make or enter into any compromise or settlement of any
claim, demand, cause of action, action, suit or other proceeding, without first obtaining the written
consent of the other.

4. INSURANCE REQUIRED. The Grantee shall file with the Village Clerk and shall, during the entire
term of this franchise, maintain in full force and effect at its own cost and expense each of the
following policies of insurance.

a. General Comprehensive Liability Insurance in the amount of $1,000,000 together with
personal injury liability insurance in an amount of not less than $250,000 for injuries including
accidental death, to any one person, and subject to the same limit for each person in an amount
not less than $500,000 on account of any one occurrence, and property damage liability
insurance in an amount not less than $250,000 resulting from any one occurrence, and
workmen's compensation insurance, provided, however, as follows:

i. The Village shall be named as an additional insured in any of said insurance policies;
and

ii. Where such insurance is provided by a policy which also covers Grantee or any other
entity or person, it shall contain the standard cross-liability endorsement;

iii. All insurance (including performance bonds) must be issued by companies authorized
to do business in the State of Illinois, and having capital and -or surplus of not less
than three million dollars;

iv. All insurance required by this agreement shall be and remain in full force and effect
for the entire life of this agreement. Said policy or policies of insurance or a certified
copy of copies thereof shall be approved by the Village Attorney and deposited with
and kept on file by the Village Clerk.

5. Company, shall, within thirty days subsequent to the effective date of the ordinance codified in this
chapter, post a performance bond with the Village, written by an approved corporation surety in the
amount of Twenty -five Thousand ($25,000.00) D ollars and in a form satisfactory to the Village
guaranteeing company's continued operation of the cable television system within the Village, and
company shall well and truly observe, fulfill, and perform each term and condition of the bond;
provided, however, that if the company has posted a bond pursuant to the requirements of the chapter
heretofore granted and said bond is in effect when the term of the ordinance codified in this chapter
begins and is in a form and amount satisfactory to the Village, such bond shall constitute full
compliance with the requirements of this section. All damages which may be directly occasioned by the
failure of the company to perform under this chapter, up to the principal amount of the bond, shall be
recoverable from the principals and sureties of said bond by the Village. The performance bond
hereinabove referred to may be reduced to the sum of Ten Thousand Dollars ($10,000.00) upon the
completion of the construction satisfactory to Village.

6. If company should commit a minor breach of this chapter and not remedy such breach within sixty
days after having received written notice from the Village to so do, then the Village at its discretion,
may declare a portion of the bond equivalent to the amount of damage sustained by the municipality
which are directly attributable to such breach forfeited and company shall thereupon be required:

a. To remedy the breach within reasonable dispatch; and

b. Within sixty days of such forfeiture replace the forfeited portion of the bond. Notwithstanding
the foregoing, nothing contained in this subsection shall serve to absolve company of any of its
obligations under this chapter or the rules and regulations of the Federal Communications
Commission.
7. The company shall pay all premiums chargeable for the bond and shall keep same in full force and
effect at all times throughout the term of the Ordinance codified in this chapter and during the removal
of all poles, wires, cables, underground conduits, manholes and other conductors, convertors,
equipment, and fixtures subsequent to the termination of the ordinance codified in this chapter.

The bond shall contain a provision that it shall not be terminated or otherwise allowed to expire
prior to sixty days after written notice to that effect is given to the Clerk or similar official of the
Village.

8. Within sixty days after the effective date of the ordinance codified in this chapter, the company shall
file with the Federal Communications Commission such request, petition, or other application as is then
proper to secure from said Federal Communications Commission any and all necessary permits,
licenses, waivers, or the like as may be necessary to be secured from said Federal Communications
Commission to fully comply with the terms of this chapter. The company shall thereafter diligently
pursue such application with the Federal Communications Commission and shall do all reasonable
things necessary and proper to secure any such permit, license, waiver, approval or the like from it. The
company shall keep the Village advised, from time to time, of the progress of such application.

Sec. 19-26. Village May Adopt Additional Regulations

The Village reserves the right to adopt, in addition to the provisions contained in this chapter, such
additional regulations as it shall find necessary in the exercise of its police power; provided, however, that such
regulations are reasonable and not materially in conflict with the privileges granted in this chapter.

Sec. 19-27. Activities Prohibited

A. The company, any and all of its officers, agents, employees, are specifically prohibited from engaging
in the sale, service, rental, or leasing of television receivers, radio receivers, or television or radio
receiver related parts and accessories with any person anywhere in the Village whether for a fee or
charge or not. The company shall prohibit any of its officers, agents, and employees from violating the
terms of this section at all times, whether in the performance of duties of the company or otherwise.

B. The company shall not allow its cable or other operations to interfere with television reception of
persons not served by the company, nor shall the system interfere with, obstruct or hinder in any
manner, the operation of the various utilities serving the residents of the Village.

C. The company shall not, as to rate, charges, service facilities, rules, regulations or in any other respect,
make or grant any preference or advantage to any person, nor subject any person to any prejudice or
disadvantage; provided, that nothing in this chapter shall be deemed to prohibit the establishment of a
graduated scale of charges and classified rate schedules to which any customer coming within such
classification would be entitled.

Sec. 19-28. Violation - Penalty

A. Should the company, its successors or assigns, violate any of the provisions of this chapter or any
reasonable rules and regulations established by the Village pursuant hereto, and should such violation
continue for more than thirty days after the Village has given the company written notice of such
violation, failure or default, the same shall be cause for the forfeiture or revocation of the ordinance
codified in this chapter and the termination of all rights hereunder; provided, however, any delay in
correcting such violation which is caused by factors beyond the control of the company shall not be
included in computing the length of the continuance of such violation.

B. In the event of the bankruptcy or receivership of the company, all rights herein given to the company
shall, at the option of the Village, be forfeited and terminated.

Sec. 19-29. Repealer

That all ordinance in conflict herewith are hereby repeated. They are: NONE

Sec. 19-30. Severability Clause

If any section, provision or part of this ordinance shall be adjudged invalid or unconstitutional, such
adjudication shall not affect the validity of the ordinance as a whole or any section, provision or part thereof not
adjudged invalid or unconstitutional.

Sec. 19-31. When Effective

This ordinance shall be in effect after its final passage, approval and publication as provided by law.