§ I. DEFINITIONS.

For the purpose of this ordinance, the following terms shall have the meanings given herein. When not inconsistent with the context, words used in the present tense include the future tense, words in the plural number include the singular number, and words in the singular number, and words in the singular number include the plural number:

A.

"City" refers to the City of Hobbs, New Mexico;

B.

"Company" refers to US Cable of Costal-Texas, L.P., or the lawful successor, transferee, or assignee thereof.

C.

"Commission" refers to the City Commission of the City of Hobbs;

D.

"Gross Revenues" mean any and all revenue derived directly or indirectly by Company and/or its affiliates from the operation of its Cable System within the City of Hobbs including, but not limited to, (1) all Cable Service fees; (2) Franchise Fees; (3) late fees, returned check charges; (4) installation and reconnection fees; (5) fee payments or other consideration earned, whether or not received, by Company from programmers for carriage of Cable Services or marketing support in connection with the Cable Services on the Cable System; (6) upgrade and downgrade fees; (7) advertising revenue with no deduction or offset for internal commissions earned by employees of Company or its affiliates; (8) home shopping commissions; (9) converter and remote control rental fees; (10) lockout device fees; (11) guides; (12) production charges; and (13) to the extent permissible under applicable laws, Internet service and equipment fees and any and all other related consideration earned or derived by Company resulting from the provision of cable modem service and data services within the City. The term "Gross Revenues" shall not include any taxes on Services furnished by Company imposed upon Subscribers by and municipality, State or other governmental unit and collected by Company for such governmental unit.

E.

"Basic Cable" is the tier of service regularly provided to all subscribers that includes the re-transmission of local broadcast television signals.

F.

"Cable Act" means the Cable Communications Policy Act of 1984, 47 U.S.C. § 521, et al., as amended.

G.

"Cable Service" means (1) the one-way transmission to subscribers of video programming or other programming service, and (2) subscriber interaction, if any, which is required for the selection or use of such video programming or other lawful communication service.

H.

"Cable System" means a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment or other communications equipment that is designed to provide cable service and other lawful communications service to subscribers.

I.

"FCC" means Federal Communications Commission, or successor governmental entity thereto.

J.

"Franchise" shall mean the initial authorization, or renewal thereof, issued by the City, whether such authorization is designated as a franchise, permit, license, resolution, contract, certificate, or otherwise, which authorizes construction and operation of the cable system for the purpose of offering cable service and other lawful communications service to subscribers.

K.

"Person" means an individual, partnership, association, joint stock company, trust corporation, or governmental entity.

L.

"Public Way" shall mean the surface of, and space above and below, any public street, highway, freeway, bridge, land path, alley, court, boulevard, sidewalk, parkway, way, lane, public way, drive, circle, or other public right-of-way, including, but not limited to, public utility easements, dedicated utility strips, or rights-of-way dedicated for compatible uses and any temporary or permanent fixtures or improvements located thereon now or hereafter held by the City in the service area which shall entitle the City and the Company to the use thereof for the purpose of installing, operating, repairing, and maintaining the cable system. Public way also shall mean any easement now or hereafter held by the City within the service area for the purpose of installing, operating, repairing and maintaining the cable system. Public Way also shall mean any easement now or hereafter held by the City within the service area for the purpose of public travel, or for utility or public service use dedicated for compatible uses, and shall include other easement or rights-of-way as shall, within their proper use and meaning, entitle the City and the Company to the use thereof for the purposes of installing or transmitting Company's cable service or other service over poles, wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments, and other property as may be ordinarily necessary and pertinent to the cable system.

M.

"Service Area" means the present municipal boundaries of the City, and shall include any addition thereto by annexation or other legal means.

N.

"Service Tier" means a category of cable service or other services, provided by Company and for which a separate charge is made by Company.

O.

"Subscriber" means a person or user of the cable system who lawfully receives cable services or other service therefrom with Company's express permission.

P.

"Video Programming" means programming provided by, or generally considered comparable to programming provided by, a television broadcast station.