AT&T CALIFORNIA FRANCHISE BOND 2007

FI~r4rN6HISE BOND Travelers Casualty and Surety Company of America One Tower Square, Hartford, CT 06183 Bond No. 104883489 KNOW ALL MEN BY THESE PRESENTS, that we, Telephone Company dlb/a ATB:T California. 525 Market Street. 19"' Floor. San Francisco. CA 94105, as Principal, and Travelers Casualty and Surety Company of America, a corporation of the State of Connecticut, as Surety, are held and firmly bound unto the California Public Utilities Commission. 505 Van Ness Avenue. San Francisco. CA 94102, as Obligee, in the sum of Five Hundred Thousand and N0/100- Dollars, ($500,000.00) lawful money of the United States of America, to be paid unto said Obligee, its successors and assigns, jointly and severally, firmly by these presents. WHEREAS, the above bound Principal has entered into a written agreement, dated February 16. 2007, with the Obligee which grants a Franchise to the Principal for the construction and operation of a proposed state video system, and to maintain the facilities and public ritthtof-wave in good order throuohout the term of the grant. Principal has agreed to faithfully perform and observe and fulfill all terms and conditions of said Franchise agreement referred to above and said agreement is hereby made a part of this bond with like force and effect as if here in set forth in length. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the above named Principal, its successors or assigns, does and shall well and truly observe, perform and fulfill its obligation as set forth in the above mentioned Franchise agreement, for which a bond must be posted, then the above obligation to be void; otherwise to remain in full force and effect. The bond is subject, however, to the following express conditions: FIRST: That in the event of a default on the part of the Principal, its successors or assigns, a written statement of such default with full details thereof shall be given to Surety promptly, and in any event, within thirty (30) days after the Obligee shall learn of such default, such notice to be delivered to Surety at its Home Office in Hartford, Connecticut by registered mail. SECOND: That no claim, suit or action under this bond by reason of any such default shall be brought against Surety unless asserted or commenced within (12) twelve months after the effective date of any termination or cancellation of this band. THIRD: That this bond may be terminated or cancelled by Surety by Th rt (30) days prior notice in writing to Principal and to Obligee. Such termination or cancellation shall not affect any liability incurred or accrued under this bond prior to the effective date of such termination or cancellation. The liability of the Surety shall be limited to the amount set forth above and is not cumulative. FOURTH: That no right of action shall accrue under this bond to or for the use of any person other than the Obligee, and its successors and assigns. IN WITNESS WHEREOF, the above bound Principal and the above bound Surety have hereunto set their hands and seals on the 16th day of February, 2007. Pacific Bell Telephone Company d/bla SBC Pacific Bell Telephone Compa ~;/b/a.ATB~T California ~ ,•~ 6\ ~ / e - ~q`:~ 031't~:q~ S-2403 (OB-99) By: Daniel V. Travelers Company of America.