§ 25. EXTENSION OF SERVICE.

(a)

The Grantee shall provide service to all persons requesting such within any area of the City, contiguous to Grantee's existing system, as long as it is "economically feasible" to do so. As used herein "economically feasible" shall mean that there are at least twenty (20) occupied homes per mile and shall be based upon a measurement taken from the outermost extremity of the potential extension area back through and measured along the shortest usable path of available streets, alleys, public rights-of-ways and public places now laid out or dedicated for such, inclusive of limited access and private easements.

(b)

Grantee shall offer Cable Service to all areas within the incorporated limits of City.

(c)

Grantee shall extend service to all residences within newly annexed areas of the City where the density of homes is at least twenty (20) homes per cable mile within eighteen (18) months of a request, unless all applicable permits have not been received. Grantee shall apply for such permits in a timely manner. In the event that such new area is served by another cable operator at the time of such request, Grantee shall have the option but not the obligation to provide the service.

(d)

In areas with less than twenty (20) homes per proposed cable mile, Grantee shall offer a cost-sharing arrangement to residents. Grantee shall bear its pro rata share of the current construction costs based upon the actual number of homes per mile. The cost-sharing arrangement shall consist of the following:

1.

On the request of a subscriber desiring service, Grantee shall prepare, at its cost, an engineering survey and cost analysis to determine the cost of the plant extension required to provide service to the subscriber from the closest usable point on the cable system.

2.

The cost of construction shall be allocated based on the following formula: If a request for extension into a residential area requires the construction of cable plant, which does not pass at least twenty (20) homes per mile, Grantee and subscribers will each bear their proportionate share of construction costs. For example, if there are ten (10) dwelling units per mile, Grantee's share will equal 10/20 th of the construction cost. The remaining cost will be shared equally by each subscriber in the area to be constructed. The line extension formula shall also be applied to a portion of a mile meeting proportionate density requirements. The cost sharing described above would be utilized if there were less than the proportionate share of dwelling units per the portion of a mile needed to reach the dwelling units.

3.

Should additional subscribers request cable television service, subscribers utilizing the cost-sharing plan for extension shall be reimbursed pro-rata for their contribution or a proportional share thereof. In such case, the pro-rata shares shall be recalculated and each new subscriber shall pay the new pro-rata share, and all prior subscribers shall receive refunds. In any event, at the end of twenty-four (24) months from completion of the project, the subscribers are no longer eligible for refunds, and the amounts paid in construction costs will be credited to the plant account of the Grantee.

4.

The average cost of the line extension shall be recalculated annually and based upon the current costs of labor and material.

(e)

Each person contributing toward the direct cost of the line extension agrees to waive all ownership interest in the line extension. All equipment and components of the line extension, including, but not limited to, cable wire, electronics and pedestals shall at all times remain the exclusive property of the Grantee.

(f)

Grantee shall install a CATV service drop to subscribers of the home requesting such. The cost of the service line installation will be at the rate specified in Grantee's prevailing schedule of installation charges.

(g)

Any subscriber who requests that their cable be under grounded from Grantee's service pole to the subscriber's home and who would normally be entitled to aerial service may be charged the current hourly service charge to underground the cable.