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direct costs for material and labor for service calls to (e) The efficiency of Grantee; subscriber's tome. (f) The Quality of the service offered by Grantee; (4) Grantee shall give City and the North Suburban Cable (g) The original cost of the ten-city cable communications system Cammnications Commission II written notice of rates for new or delineated in the Offering, less depreciation, except that I additional services not initially included in Offering of Grantee Grantee agrees and warrants that should the actual cost of sod therefore not listed in Exhibit A. Each new or additional the ten-city cable cammanications system delineated in the service rate shall be deemed approved unless expressly disapproved Offering exceed Grantee's estimate for construction of 339.5 by resolution of Council of City according to the terms of this miles of aerial plant, 83 miles of underground subscriber Franchise within ninety (90) days after the notice has been given plant, 66.4 miles of institutional plant, Grantee shall E as provided in this Franchise. assume all of said excess costs and all of said excess costs t D. Rate Changes shall not be a consideration in any subsequent request for a (1) No rate change shall be approved that would result in different rate increase pursuant to this Franchise or any franchise rates or charges for service to subscribers in the rate territory granted to Grantee relative to the cable communication system receiving similar service, other than those specified in Article delineated in the Offering. VI, Section 2.B. (h) A fair rate of return with respect to investments having (2) The standards for reviewing a proposed rate change will include at similar risks to that of providing cable communication least the following: services; (a) The ability of the Grantee to render System services and to (i) The extent to which Grantee has adhered to the terms of thin Franchise; derive a reasonable profit therefrom under the existing rate u Pschedule and proposed rate schedule; (j) Fairness to residents and subscribers; P (b) All revenues and profits or actual losses derived from (k) Capital expenditures (actual and, if the situation so System, warrants, projected) by Grantee in providing updated tech- (c) Tax benefits and tax costs received by Grantee, its partners nology and service to subscribers; (1) The extent to which Grantee has then provided service to or shareholders, as the result of their irnestment in the schools, hospitals, libraries, publicly vaned or leased System; (d) Cash flow generated by System; buildings and similar institutions within City; Ali A-3