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SECTION 3 SERVICE AREA AND LINE EXTENSION POLICY 3.1 Franchise and Service Area The Grantee's Franchise and Service Areas shall be the entire City of Pleasanton, including any and all territory as may be annexed thereto, during the term of this Agreement. The Grantee shall offer the full range of residential cable services to all residents in the City of Pleasanton, at standard installation charges. A standard installation shall be defined as within one hundred twenty- five (125) feet from the closest access point of the Grantee's existing distribution plant. Where a drop exceeds one hundred twenty-five (125) feet in length Grantee may charge the Subscriber for the difference between Grantee's actual costs associated with installing a one hundred twenty-five (125) foot drop and Grantee's actual cost of installing the longer drop. 3.2 Service to Unserved Residences In the event that a new residential dwelling unit requesting Cable Service is not located within five hundred (500) feet (or the equivalent of twenty-five (25) homes per linear mile) of the nearest existing Cable System plant, Grantee shall extend the Cable System on request based upon the following cost-sharing formula: i. Total Cost to Construct Extension Cable Miles of Extension ii. Cost Per Cable Mile of Extension 25 iii. Grantee's Share of Cost Per Subscriber Unit Times Number Of Subscriber Units Passed iv. Total Cost to Construct Extension Minus Grantee's Share of Total v. Total Subscriber Share Number of Subscribers = Cost Per Cable Mile of Extension = Grantee's Share of Cost Per Subscriber Unit = Grantee's Share of Total Cost of Extension = Total Subscriber's Share = Cost Per Subscriber Requesting Service It is the intent of the Grantor and Grantee that the cost-sharing formula only shall apply to isolated residential dwelling(s). It is not the intent of Grantor t3