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SECTION 1 RENEWAL OF FRANCHISE 1.1 Grant The Cable System Franchise currently held by Tele-Vue Systems, Inc., whose current ownership is indicated in Exhibit "A," is hereby renewed by this Agreement which extends the Franchise, authority, right and privilege, to construct, reconstruct, operate andmaintain a Cable System within the Streets and Public Ways in the City of Pleasanton as it is now or may in the future be constituted, and also provides the authority to offer to Subscribers any Cable Service that legally may be offered, utilizing the facilities of Grantee's Cable System. 1.2 Right of Grantor to Issue and Renew Franchise Grantee acknowledges and accepts the present right of Grantor to issue and/or renew a Franchise and Grantee agrees it shall not challenge any lawful exercise of this Agreement in any local, State or Federal court. This is not, however, a waiver of any constitutional or legal right or privilege on the part of the Grantee. 1.3 Effective Date of Renewal The renewal shall be effective on June 1, 2001. The renewal is contingent upon the filing by Grantee with the City Clerk, of the executed Franchise Agreement and the required security fund, insurance certificates and EG Access grant, except that if the filing of the security fund or any such insurance certificate or EG Access grant does not occur by July 31, 2001, the Grantor may declare this renewal null and void. 1.4 Duration The term of the renewal shall be ten (10) years from the effective date hereof, after which time it shall expire and be of no force and effect unless renewed. Renewal shall be in accordance with applicable law. z