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SECTION 4 SYSTEM UPGRADE <br />4.1 Upgrade <br />The Grantor and Grantee acknowledge that Grantee has upgraded the <br />Cable System to provide a capacity of up to Seven Hundred Fifty (750) <br />Megahertz (MHz). The Cable System has the ability to provide at least seventy- <br />eight (78) analog Channels of video programming to all residential Subscribers, <br />as well as audio programming, digital video programming and high speed cable <br />modem (also called Internet access) service to all residential Subscribers. <br />4.2 Services to Public Agencies <br />Grantee shall provide Basic Cable Service (consisting of the Basic <br />Service Tier and the Cable Programming Services Tier) and/or interactive data <br />services capability (i.e., cable modem or Internet access) to all of the public <br />buildings and locations listed in Figure 1 of Exhibit "B," and under the terms <br />specified.in Exhibit "B." <br />4.3 Most Favored Nation <br />(a) To assure that Grantee's Cable System and Franchise <br />continues to reflect the general cable industry state-of-the-art throughout the <br />term of the Franchise, Grantor and Grantee agree to utilize Cable Systems in the <br />following California communities as a basis for comparison. The comparison <br />communities (also referred to as the "comparison group") shall be: <br />(1) City of Castro Valley <br />(2) City of Concord <br />(3) City of Fremont <br />(4) City of Hayward <br />(5) City of San Jose <br />(6) City of Walnut Creek <br />(b) No earlier than five (5) years after the effective date of this <br />Agreement, when three (3) or more of the comparison group have Cable <br />15 <br />