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Supplemental Agreement <br />March 16, 2001 <br />Page Three <br />Capital Grant Recovery <br />The costs associated with the One Million Dollar ($1,000,000) capital grant for <br />EG Access support provide pursuant to Exhibit B, Paragraph 5 of the Franchise <br />Agreement may be recovered by AT&T only to the extent, and in the manner, <br />provided herein. ATiiT agrees that it shall not separately itemize on Subscriber <br />invoices the cost associated with the capital grant. Any recovery of costs <br />associated with providing the grant through a rate that is regulated by the City <br />shall be amortized over the life of the Franchise Agreement and shall be limited <br />to Eight Hundred Thousand Dollars ($800,000). The Eight Hundred Thousand <br />Dollar ($800,000) limit reflects the requirement that Two Hundred Thousand <br />Dollars ($200,000) of the original total grant shall be utilized for the purchase of <br />construction work from AT&T as detailed in the Franchise Agreement. <br />Agreed to by: <br />Don Schena P <br />~'k,.~.~ Z.9 Zayl <br />Date <br />Senior Vice President <br />AT&T Broadband <br />cc: Kent Leacock, V.P. Government Affairs and Franchising <br />Rachelle Guillen, Government Affairs Manager <br />APPROVED BY: <br />~~ <br />X I ~Vy~ ~ G c~ <br />MAYOR, CITY OF PLEASANTON <br />X .~ C <br />CITY C ' CI O LEASANTON <br />