Southern MultiMedia Communications, Inc. - Page 5




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                  (2) That the CATV system as installed is capable of                 
                  transmitting and passing the entire color television                
                  signals without the introduction of material                        
                  degradation of color fidelity and intelligence.                     
                  (3) That the CATV system is designed and capable of                 
                  twenty-four (24) hours a day continuous operation.                  
                  (4) That the CATV system is capable of and will                     
                  produce a picture upon any subscriber's television                  
                  screen in black and white or color (provided the                    
                  subscriber's television set is capable of producing a               
                  color picture) that is undistorted and free from                    
                  ghost images and accompanied by proper sound,                       
                  assuming the technical, standard production                         
                  television set is in good repair and that the                       
                  television broadcast signal transmission is                         
                  satisfactory.  In any event, the picture produced                   
                  shall be as good as the state of the art allows.                    
                  (5) That the CATV system shall transmit or distribute               
                  signals of adequate strength to produce good pictures               
                  with good sound in all television receivers of all                  
                  subscribers without causing cross modulation in the                 
                  cables or interference with other electrical or                     
                  electronic systems.                                                 
                  (6) That the CATV system as installed has a minimum                 
                  capacity of twenty (20) channels.                                   

               If Wometco failed to comply with requirements of the                   
          franchise agreements, the franchise agreements could be                     
          terminated by the local municipal governments.                              
               As of December 31, 1985, and through January 1, 1991, all of           
          Wometco's cable television systems met the minimum channel                  
          capacity requirements set forth in the franchise agreements.1               



          1    Two of Wometco's franchise agreements reflected a minimum              
          capacity of 35 channels, and a number of Wometco's franchise                
          agreements reflected no minimum channel capacity.                           





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Last modified: May 25, 2011