§ 6. DEFINITIONS.

For purposes of this article, the following terms, phrases, words and their derivations shall have the meanings given herein. When not inconsistent with the context, words used in the present tense include the future; works [words] in the plural number include the singular number. The word "shall" is mandatory and"may" is permissive. Words not defined shall be given their common or ordinary meanings.

Additional services means CABLE SERVICES for which an additional charge is made beyond the charge for basic subscriber services, including, but not limited to, movies, concerts, variety acts, sporting events, pay-per-view programs and any other service utilizing any facility or equipment of a cable television system operating pursuant to a franchise granted under this article.

Basic subscriber radio service means such audio services as the re-transmission of broadcast FM radio signals, weather, news, time and other similar audio services, and the transmission of cablecast (nonbroadcast) radio signals as permitted by the FCC.

Basic subscriber television services means any service tier provided by the Grantee which includes the delivery of broadcast signals, public, educational and government access channels, and local origination channels, covered by the regular monthly charge paid by all subscribers to a particular service tier.

Cable communications system or cable television system, also referred to as "system," means a facility consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designated [designed] to provide cable service which includes video programming and which is provided to multiple subscribers within a community; but such term does not include:

(a)

A facility that serves only to retransmit the television signals of one (1) or more television broadcast stations;

(b)

A facility that serves subscribers without using any public rights-of-way.

(c)

A facility of a common carrier which is subject, in whole or in part, to the provision of Title II of the Cable Act, 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 subscribers; or

(d)

Any facilities of any electric utility used solely for operating its electric utility systems.

Communications Policy Act or Cable Act (the "Act") means the Cable Television Consumer & Protection ct of 1992, as amending the Communications Act of 1934 and 1984 and as it may be amended or succeeded.

Channel means a six Megahertz (MHz) frequency band which is capable of carrying either one (1) standard video signal, a number of audio, digital or other nonvideo signals, or some combination of signals.

Commence operation means that time and date when operation of the cable communications system is considered to have commenced, which shall be when the system is fully constructed.

Commercial subscriber means a subscriber who receives a service in a place of business where the service may be utilized in connection with a business, trade or profession, without financial consideration to the commercial subscriber.

Community access channel means any channel(s) designated or dedicated for use by the general public or noncommercial organizations which is made available for community, educational and government use, without charge, on a first-come, first-served basis.

Converter means an electronic device which converts signals to a frequency not susceptible to interference within the television receiver of a subscriber and any channel selector which permits a subscriber to view all signals delivered at designated converter dial locations at the set or by remote control.

Council means the City Council of the City of Burlington.

Discrete channel shall mean a channel which can only be received by the person and/or institution intended to receive signals on such channel.

Drop shall mean a coaxial connection from feeder cable to the subscriber/user television set, radio or other terminal.

Educational channel or educational access channel means any channel where educational programs are the only designated use.

Fair market value means the price that a willing buyer would pay to a willing seller for a going concern.

FCC means the Federal Communications Commission or any legally appointed or elected successor.

Franchise means the nonexclusive rights, granted pursuant to this article, to construct, operate or maintain a cable communications system along the public ways within all or a specified area in the City. Any such authorization, in whatever form granted, shall not mean or include any license or permit required for the privilege of transacting and carrying on a business within the City, as required by other ordinances and laws of the City.

Franchise agreement means a contract entered into voluntarily between the City and the Grantee, containing the specific provisions of the franchise granted including applicable referenced specifications, franchise proposals, applications and other related material.

Franchise area means the entire City, or portions thereof, for which a franchise is granted under the authority of this article. If not otherwise stated in the franchise agreement, the franchise area shall be the corporate limits of the City, including all territory thereafter annexed to the City.

Franchise fee means an amount not to exceed 5%, as specified, of the Grantee's gross annual receipts from the operation of the system pursuant to the agreement.

Government channel or government access channel means any channel specifically designated or dedicated for use by the grantor.

Grantor means the City of Burlington as represented by the City Council acting within the scope of its jurisdiction.

Grantee or franchisee means the Time Warner Entertainment-Advance Newhouse Company d/b/a/ Time Warner Cable of Burlington.

Gross subscriber revenues means all receipts received directly or indirectly by Grantee, from the provision of Cable Services in the incorporated areas of the City of Burlington, North Carolina. The term gross subscriber revenue does not include any franchise fees or regulatory fees.

House shall mean any single-family dwelling unit (house, apartment, mobile home, trailer, rented room or otherwise), but shall not mean an abandoned dwelling or building otherwise uninhabitable.

Installation shall mean the connection of the system from feeder cable to subscribers' terminals.

Leased access channel or commercial leased channel means any channel designated or dedicated for use by persons unaffiliated with the Grantee in accordance with the Cable Act.

Monitoring means observing a communications signal, or the absence of a signal, where the observer is not a party to the communications, whether the signal is observed by visual or electronic means, for any purpose whatsoever.

Person means an individual, partnership, association, organization, corporation or any lawful successor, or transferee of said individual, partnership, association, organization or corporation.

Plant mile means a lineal mile of strand-bearing cable as measured on the street or easement from pole to pole or pedestal to pedestal.

Programmer means any person or entity who or which produces or otherwise provides program material or information for transmission by video, audio, digital or other signals, either live or from recorded traces or other storage media, to users or subscribers by means of the cable communications system.

Public property shall mean any real property owned by the City, other than a street.

Public way or public right-of-way means the surface, the air space above the surface and the area below the surface of any public street, highway, lane[,] path, alley, sidewalk, boulevard, drive, bridge, tunnel, park, parkways, waterways, utility easements or other public right-of-way hereafter held by the City, which shall entitle the City and the Grantee to the use thereof for the purpose of installing and maintaining a cable television system. No reference herein, or in any franchise, to the "public way" shall be deemed to be a representation or guarantee by the City that its title to any property is sufficient to permit its use for such purpose, and the Grantee shall, by its use of such terms, be deemed to gain only such rights to use property in the City as the City may have the undisputed right and power to give.

Reasonable notice shall be written notice addressed to either City or Grantee at its respective principal office within the City or such other office as the City or Grantee has designated to the other as the address to which notice shall be transmitted to it, which notice shall be certified and postmarked not less than thirty (30) days prior to that day in which the party giving such notice shall commence any action which requires the giving of notice.

Resident means any person residing in the City, as otherwise defined by applicable law.

Residential subscriber means a subscriber who receives a service in an individual dwelling unit where the service is not to be utilized in connection with a business, trade or profession.

Sale shall include any sale, exchange, barter or offer for sale.

School means any public education institution, including primary and secondary schools, colleges and universities.

Service area means the present incorporated area of the City, as of the effective date of this franchise agreement, receiving service from the Grantee's cable TV system on the effective date of the franchise agreement.

State means the State of North Carolina.

State-of-the-art shall mean that the Franchisee shall construct, install, operate and maintain its system in a manner which will continue to enable it to add new services and associated equipment as they are developed, available, and when proved economically feasible and marketable to subscribers to the reasonable satisfaction of the Franchisee.

Street shall include each of the following, which have been dedicated to the public or are hereafter dedicated to the public and maintained under public authority or by others and located within the City limits; streets, roadways, highways, avenue, lanes, alleys, sidewalks, easements, rights-of-way and similar public ways and extensions and additions thereto, together with such other public property and area that the City shall permit to be included within the definition of street from time to time.

Transfer means the disposal by the Grantee, directly or indirectly, by gift, assignment, voluntary sale, merger, consolidation or otherwise, except publicly traded issue, not in control of the Grantee, of fifty (50) percent or more at one time of the ownership or controlling interest in the system, or fifty (50) percent cumulatively over the term of the franchise of such interests to a corporation, partnership, limited partnership, trust or association, or person or group of persons acting in concert. Affiliate transfers excepted.

Trunk line means the major distribution cable used in cable communications, which divides into feeder lines which are tapped for service to subscribers.

User means a person or organization utilizing channel or equipment and facilities for the purpose of production and/or transmission of material, as contrasted with receipt thereof in a subscriber capability.