A. Grantee shall not sell, transfer, lease, assign, sublet or dispose of, in whole or in part, either by forced or involuntary sale, or by ordinary sale, consolidation or otherwise, the permit and/or cable system or any of the rights or privileges granted by the permit, without the prior consent of the council which consent shall not be unreasonably denied or delayed and shall be denied only upon a good faith finding by the city that the proposed transferee lacks the legal, technical or financial qualifications to perform its obligations under the permit agreement. Any attempt to sell, transfer, lease, assign or otherwise dispose of the permit and/or cable system without the consent of the council shall be null and void. This provision shall not apply to sales of property or equipment in the normal course of business. No consent from the city shall be required for a transfer in trust, mortgage, or other instrument of hypothecation, in whole or in part, to secure an indebtedness, or for a pro forma transfer to a corporation, partnership or other entity controlling, controlled by or under common control with grantee. The following events shall be deemed to be a sale, assignment or other transfer of the permit and/or cable system requiring compliance with this section:
1. The sale, assignment or other transfer of all of the majority of grantee's assents;
2. The sale, assignment or other transfer of capital stock or partnership, membership or other equity interests in grantee by one or more of its existing shareholders, partners, members or other equity owners so as to create a new controlling interest in grantee;
3. The issuance of additional capital stock or partnership, membership or other equity interest by grantee so as to create a new controlling interest in grantee; and
4. The entry by the grantee into an agreement with respect to the management or operation of the grantee and/or the system.
The term "controlling interest" as used herein means majority equity ownership of the grantee.
B. The grantee shall promptly notify the city of the potential or actual occurrence of any of the events listed in subsection A of this section.
C. By its acceptance of this permit and except as provided for herein, the grantee specifically grants and agrees that any such sale, assignment or transfer occurring without prior approval of the council shall constitute a violation of this permit by the grantee. (Ord. 6007, 8-23-2004)