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SECTION 3. SUBSCRIBER PRACTICES <br />There shall be no charge for disconnection of any installation or <br />outlet. Section 3 also details Group W's right to disconnect for failure to pay <br />the monthly subscriber fees. <br />SECTION 4. FRANCHISE FEES, RATES, CHARGES, CHANCES <br />IN FEES AND PIIS <br />Throughout the term of the franchise, Group W shall pay to City an <br />annual fee of 5% of all gross revenues. The rates provided in the franchise <br />shall be guaranteed for 3 years after the franchise is certified by the Board or <br />until two years after completion of construction in the initial service area, <br />whichever is longer. Basic rates shall be regulated pursuant to the terms and <br />conditions of the franchise. Rates for premium services may be raised by Group <br />W to the extent of the increase in the Consumer Price Index. Any increase in <br />rates in excess of the Consumer Price Index must be justified to City pursuant <br />to standards and procedures provided for in Section 4. The City retains the <br />right to review the performance and technological upgrading of the System. <br />Group W shall exercise its best efforts to maintain a modern, state-of-the-art <br />Systemwhich is comparable to other operating cable television systems similarly <br />situtated. <br />SECTION 5. FRANCHISE RENEWAL <br />The franchise may be renewed at any time for a period of up to fifteen <br />years or on a year to year basis at the discretion of the City. <br />ARTICLE VII. (Reserved) <br />ARTICLE VIII. INtEiNIFICATICN, INSURANCE, LETTER. CIF CREDIT AND BOND <br />SECTION 1. GENERAL <br />The City retains all rights of indemnification, insurance, letter of <br />credit or bond as provided in the franchise. <br />-5- <br />