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4.3.1 Reasonable Build-Out of the Entire City. The Parties recognize that Grantee, <br /> or its affiliate QC, has constructed a legacy communications system throughout <br /> the City that is capable of providing voice grade service. The Parties further <br /> recognize that Grantee or its affiliate QC must upgrade its existing legacy <br /> communications system and construct new facilities to make it capable of <br /> providing Cable Service. The Parties agree that the following is a reasonable <br /> build-out schedule taking into consideration Grantee's desire for a standard based <br /> on market success and the requirements of Minnesota state law. <br /> (i) Complete Equitable Build-Out. Grantee aspires to provide Cable Service <br /> to all households in the City within five (5) years of the Effective Date. In <br /> addition, Grantee commits that a significant portion of its investment will <br /> be targeted to areas below the median income in the City. <br /> (ii) Initial Minimum Build-Out Commitment. Grantee agrees to be capable of <br /> serving a minimum of fifteen percent (15%) of the City's households with <br /> Cable Service during the first two (2) years of the initial Franchise term, <br /> provided, however that Grantee will make its best efforts to complete such <br /> deployment within a shorter period of time; Grantee shall make available <br /> and offer Cable Service to all Qualified Living Units identified in the <br /> reports and maps, as required below showing the number of Qualified <br /> Living Units in the City as of the Effective Date. The parties <br /> acknowledge and agree that Qualified Living Units identified as of the <br /> Effective Date may materially exceed fifteen percent (15%) of City's <br /> households. This initial minimum build-out commitment shall include <br /> deployment equitably throughout the City and to a significant number of <br /> households below the medium income in the City. Nothing in this <br /> Franchise shall restrict Grantee from serving additional households in the <br /> City with Cable Service. <br /> (iii) Additional Build-Out Based on Market Success. If, at any quarterly <br /> meeting, as required below, Grantee is actually serving twenty seven and <br /> one-half percent (27.5%) of the Qualified Living Units, then Grantee <br /> agrees the minimum build-out commitment shall increase to include an <br /> additional fifteen(15%) of the total households in the City, which Grantee <br /> agrees to serve within two (2) years from the quarterly meeting; provided, <br /> however, the Grantee shall make its best efforts to complete such <br /> deployment within a shorter period of time. For example, if, at a quarterly <br /> meeting with the Commission's Executive Director, Grantee shows that <br /> sixty percent (60%) of the households in the City are Qualified Living <br /> Units and Grantee is actually serving thirty percent (30%) of those <br /> households with Cable Service, then Grantee shall serve an additional <br /> fifteen percent (15%) of the total households in the City no later than 2 <br /> years after that quarterly meeting (a total of seventy-five (75%) of the total <br /> households). This additional build-out based on market success shall <br /> continue until every household in the City is served. <br /> 18 <br /> 489232v1 RNQU210-6 <br />