Newhouse Broadcasting Corp. and Subsidiaries, et al. - Page 5




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            Livonia Franchise Agreement or franchise agreement).  On June 1,                           
            1983, MetroVision sent a letter to the City of Livonia accepting                           
            the cable television franchise (MetroVision letter of                                      
            acceptance).  The parties have stipulated that, for purposes of                            
            the motions, the Livonia Franchise Agreement was, as of December                           
            31, 1985, a binding written contract between MetroVision and the                           
            City of Livonia.                                                                           
                        2.  Relevant Terms of the Franchise Agreement                                  
                  By the franchise agreement, MetroVision was awarded                                  
                  the right to construct, operate, and maintain a cable                                
                  television system within the corporate boundaries of                                 
                  the City of Livonia, and to construct, operate and                                   
                  maintain * * * all necessary poles, towers, anchors,                                 
                  wires, cables, electronic conductors, underground                                    
                  conduits, manholes, terminals and other structures and                               
                  appurtenances integral to this cable television                                      
                  system.2                                                                             
            The franchise agreement defines the term "cable television                                 
            system" as follows:                                                                        
                  A system of coaxial cables or other electrical                                       
                  conductors and equipment used to receive or originate                                
                  or receive television radio signals and to transmit                                  
                  them via cable to subscribers for a fixed or variable                                
                  fee, including the origination, receipt, transmission,                               
                  and distribution of voices, sound signals, pictures,                                 
                  visual images, digital signals, telemetry, or any other                              
                  type of closed circuit transmission by means of                                      


            2  The franchise agreement defines the term “Franchise” as                                 
            follows:  “The rights of grantee [MetroVision] to construct and                            
            operate a cable television system in the City, subject to the                              
            City Charter, the Cable Television Regulatory Ordinance, this                              
            ordinance and all other applicable ordinances of the City, and                             
            the franchise agreement.”                                                                  





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