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WHEREAS, TWI has filed an application with the Utilities Commission to provide local <br /> exchange and exchange access as well as intra-LATA, interexchange telecommunications services <br /> in North Carolina; and <br /> WHEREAS, the County recognizes that it may need to purchase additional <br /> telecommunication services for municipal purposes and that Alert may desire to provide such <br /> services; and <br /> WHEREAS, Alert has recently filed, and the County has approved a cost of service rate <br /> increase which was based in part upon certain intangible assets. Therefore, Alert represents that this <br /> transfer shall not increase the value of Alert's intangible assets for basic rate calculation purposes, and <br /> future increases shall comply with FCC rate calculation rules; and <br /> WHEREAS, TWI and Alert represent that, notwithstanding this transfer of control, Alert shall <br /> be bound by the performance of Alert and CIC under the franchise prior to the transfer. <br /> NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners that Orange <br /> County hereby approves the transfer application and consents to the transfer to TWI, as described <br /> in the transfer application subject to the following conditions which shall become effective if the <br /> Transfer is consummated: <br /> 1. TWI and Alert: a)agree to cause Alert to be bound by the Cable Television Franchise <br /> Ordinance and perform all duties and obligations of the grantee thereunder; b) represent and warrant <br /> that Alert is able to provide, and shall agree to provide to the County and its subscribers all services <br /> required under said franchise subject to changes or modifications as permitted under the franchise and <br /> applicable law; c) acknowledge and agree that they were, and shall be subject to the regulatory <br /> authority of the County as set forth by the Federal Communications Commission; d) agree to <br /> cooperate fully with the County and to obtain from any governmental agency all licenses, permits and <br /> other authority necessary for lawful operation and maintenance of the cable television system; and <br /> a) agree to cause Alert to provide basic cable service to all public schools and other government <br /> facilities passed by cable to the extent consistent with existing franchise requirements; and <br /> 2. TWI and Alert agree, subject to availability on an interconnecting signal transportation <br /> network controlled by TWI and subject to available channel capacity, to interconnect the County <br /> system with other adjacent TWI systems to distribute regional programs [e.g.; LO and PEG access]; <br /> and <br /> -2- <br />