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Cablevision/Mayfield Village Franchise Agreement 2000 Page No. -12- has not corrected the same in a satisfactory manner, or has not diligently commenced correction of such violation, the Council may impose liquidated damages, payable from the Performance Bond or Letter of Credit, of up to Five Hundred Dollars ($500.00) per calendaz day or per incident, for unexcused violations of the system construction, upgrade and/or rebuild completion schedule provided in Section 20 herein, and up to Two Hundred Dollars ($200.00) per calendar day or per incident for all other violations, provided that all violations of a similaz nature occurring at the same time shall be considered one (1) incident. Section 19. Annual Report. In addition to the requirements of SectionQ~l5•Zy of the Codified Ordinances, Grantee shall submit a written end-of-the-year report to Grantor of service, customer service, operational and ownership changes. Such report shall be submitted within one hundred twenty (120) days of the end of the calendar year. ARTICLE 3. SYSTEM CONSTRUCTION UPGRADE/REBUILD Section 20. Build or Rebuild. (a) Grantee shall build or rebuild the Cable System, as appropriate, to provide a capacity of a minimum of seventy-seven (77) channels of video programming. The construction of the Cable System (or rebuilt Cable System) must be completed within Twenty Four (24) months after the effective date of this Agreement, using a fiber optic infrastructure and fiber to node architecture. Construction or reconstruction of the Cable System shall be in accordance with the construction schedule attached hereto as Exhibit "C":and the architectural, configuration and capacity shall be in accordance with Exhibit "D", both of,which are hereby incorporated herein. (i) Grantee shall build its Cable Systems so that it is-capable of providing service to all residences and businesses located along public rights-of--way within the Franchise Area. This shall include service to the Upper 40 area, provided Grantee does not have difficulty obtaining easement rights, free of any additional costs associated with a nonstandard installation. Service to all residences and businesses located along public rights of way within the Franchise area and the Upper 40 area. will be provided at then-prevailing installation charges except as provided below under the following circumstances: (a) Where the drop to the Subscriber location is not a Standard Installation (greater than One Hundred Fifty (150) aerial feet from the Right-of--Way), in addition to the prevailing installation charge, Grantee may charge the Subscriber the difference between Grantee's costs of installing a Standard Installation and the cost of installing the non-standard Installation drop. (b) It is understood that technology is changing rapidly. Therefore, Grantee may utilize other technology in the rebuild if such technology upgrades the design and System capacity. M & M 1999 Page 12 of 28