SECTION 9. GENERAL FINANCIAL AND INSURANCE PROVISIONS

1. Performance Bond.

a. At the time the Franchise becomes effective and at all times thereafter, until the Grantee has liquidated all of its obligations with City and Commission, the Grantee shall furnish a bond to Commission in the amount of $500,000.00 in a form and with such sureties as reasonably acceptable to Commission. This bond will be conditioned upon the faithful performance by the Grantee of its Franchise obligations and upon the further condition that in the event the Grantee shall fail to comply with any law, ordinance or regulation governing the Franchise, there shall be recoverable jointly and severally from the principal and surety of the bond any damages or loss suffered by City or Commission as a result, including the full amount of any compensation, indemnification or cost of removal or abandonment of any property of the Grantee, plus a reasonable allowance for attorneys' fees and costs, up to the full amount of the bond, and further guaranteeing payment by the Grantee of claims, liens and taxes due City or Commission which arise by reason of the construction, operation, or maintenance of the System. The rights reserved by City or Commission with respect to the bond are in addition to all other rights City may have under the Franchise or any other law. City may, from year to year, in its sole discretion, reduce the amount of the bond.

b. The time for Grantee to correct any violation or liability, shall be extended by City if the necessary action to correct such violation or liability is, in the sole determination of City, of such a nature or character as to require more than thirty (30) days within which to perform, provided Grantee provides written notice that it requires more than thirty (30) days to correct such violations or liability, commences the corrective action within the thirty (30) days period and thereafter uses reasonable diligence to correct the violation or liability.

c. In the event this Franchise is revoked by reason of default of Grantee, City shall be entitled to collect from the performance bond that amount which is attributable to any damages sustained by City as a result of said default or revocation.

d. Grantee shall be entitled to the return of the performance bond, or portion thereof, as remains sixty (60) days after the expiration of the term of the Franchise or revocation for default thereof, provided City or Commission has not notified Grantee of any actual or potential damages incurred as a result of Grantee's operations pursuant to the Franchise or as a result of said default.

e. The rights reserved to City or Commission, as applicable, with respect to the performance bond are in addition to all other rights of City or Commission whether reserved by this Franchise or authorized by law, and no action, proceeding or exercise of a right with respect to the performance bond shall affect any other right City or Commission may have.

2. Letter of Credit.

a. At the time of acceptance of this Franchise, Grantee shall deliver to Commission an irrevocable and unconditional Letter of Credit, in form and substance acceptable to Commission, from a National or State bank approved by Commission, in the amount of $25,000.00.

b. The Letter of Credit shall provide that funds will be paid to City or Commission, as appropriate, upon written demand of City or Commission, and in an amount solely determined by City or Commission in payment for penalties charged pursuant to this Section, in payment for any monies owed by Grantee to City or Commission or any person pursuant to its obligations under this Franchise, or in payment for any damage incurred by City or any person as a result of any acts or omissions by Grantee pursuant to this Franchise.

c. In addition to recovery of any monies owed by Grantee to City or Commission or any person or damages to City or Commission or any person as a result of any acts or omissions by Grantee pursuant to the Franchise, City or Commission in their sole discretion may charge to and collect from the Letter of Credit the following penalties:

i. For failure to timely complete System upgrades as provided in this Franchise unless City or Commission approves the delay, the penalty shall be $500.00 per day for each day, or part thereof, such failure occurs or continues.

ii. For failure to provide data, documents, reports or information or to cooperate with City or Commission during an application process or system review or as otherwise provided herein, the penalty shall be $250.00 per day for each day, or part thereof, such failure occurs or continues.

iii. Fifteen (15) days following notice from City or Commission of a failure of Grantee to comply with construction, operation or maintenance standards, the penalty shall be $500.00 per day for each day, or part thereof, such failure occurs or continues.

iv. For failure to provide the services Grantee has proposed, including, but not limited to, the implementation and the utilization of the access channels and the maintenance and/or replacement of the equipment and other facilities, the penalty shall be $500.00 per day for each day, or part thereof, such failure occurs or continues.

v. For Grantee's breach of any written contract or agreement with or to the City or its designee, the penalty shall be $500.00 per day for each day, or part thereof, such breach occurs or continues.

vi. For failure to comply with any of the provisions of this Franchise, or other City ordinance for which a penalty is not otherwise specifically provided pursuant to this paragraph c, the penalty shall be $250.00 per day for each day, or part thereof, such failure occurs or continues.

d. Each violation of any provision of this Franchise shall be considered a separate violation for which a separate penalty can be imposed.

e. Whenever City or Commission finds that Grantee has violated one or more terms, conditions or provisions of this Franchise, or for any other violation contemplated in Subparagraph c. above, a written notice shall be given to Grantee informing it of such violation. At any time after thirty (30) days (or such longer reasonable time which, in the determination of City or Commission, is necessary to cure the alleged violation) following local receipt of notice, provided Grantee remains in violation of one or more terms, conditions or provisions of this Franchise, in the sole opinion of City or Commission, City or Commission may draw from the Letter of Credit all penalties and other monies due City or Commission from the date of the local receipt of notice.

f. Whenever the Letter of Credit is drawn upon, Grantee may, within seven (7) days of such draw, notify City or Commission, as applicable, in writing that there is a dispute as to whether a violation or failure has in fact occurred. Such written notice by Grantee to City or Commission shall specify with particularity the matters disputed by Grantee. All penalties shall continue to accrue and City or Commission may continue to draw from the Letter of Credit during any appeal pursuant to this subparagraph f.

i. City or Commission shall hear Grantee's dispute within sixty (60) days and render a final decision within sixty (60) days thereafter.

ii. Upon the determination of City or Commission that no violation has taken place, City or Commission, as applicable, shall refund to Grantee, without interest, all monies drawn from the Letter of Credit by reason of the alleged violation.

g. If said Letter of Credit or any subsequent Letter of Credit delivered pursuant thereto expires prior to thirty (30) months after the expiration of the term of this Franchise, it shall be renewed or replaced during the term of this Franchise to provide that it will not expire earlier than thirty (30) months after the expiration of this Franchise. The renewed or replaced Letter of Credit shall be of the same form and with a bank authorized herein and for the full amount stated in Paragraph A of this Section.

h. If City or Commission, as applicable, draws upon the Letter of Credit or any subsequent Letter of Credit delivered pursuant hereto, in whole or in part, Grantee shall replace or replenish to its full amount the same within ten (10) days and shall deliver to Commission a like replacement Letter of Credit or certification of replenishment for the full amount stated in Section 9.2 (a) as a substitution of the previous Letter of Credit. This shall be a continuing obligation for any draws upon the Letter of Credit.

i. If any Letter of Credit is not so replaced or replenished, City or Commission may draw on said Letter of Credit for the whole amount thereof and use the proceeds as City or Commission determines in its sole discretion. The failure to replace or replenish any Letter of Credit may also, at the option of the City or Commission, be deemed a default by Grantee under this Franchise. The drawing on the Letter of Credit by City or Commission, and use of the money so obtained for payment or performance of the obligations, duties and responsibilities of Grantee which are in default, shall not be a waiver or release of such default.

j. The collection by City or Commission, as applicable, of any damages, monies or penalties from the Letter of Credit shall not affect any other right or remedy available to either, nor shall any act, or failure to act, by City or Commission, as applicable, pursuant to the Letter of Credit, be deemed a waiver of any right of City or Commission, as applicable, pursuant to this Franchise or otherwise.

3. Indemnification of City.3.Indemnification of City.

a. City, Commission, its officers, boards, committees, commissions, elected officials, employees and agents shall not be liable for any loss or damage to any real or personal property of any Person, or for any injury to or death of any Person, arising out of or in connection with Grantee's construction, operation, maintenance, repair or removal of the System or as to any other action of Grantee with respect to this Franchise.

b. Grantee shall indemnify, defend, and hold harmless City, Commission, its officers, boards, committees, commissions, elected officials, employees and agents, from and against all liability, damages, and penalties which they may legally be required to pay as a result of the City or Commission's, as applicable, exercise, administration, or enforcement of the Franchise.

c. Nothing in this Franchise relieves a Person, except City, from liability arising out of the failure to exercise reasonable care to avoid injuring the Grantee's facilities while performing work connected with grading, regarding, or changing the line of a Right-of-Way or public place or with the construction or reconstruction of a sewer or water system.

4. Insurance.

a. As a part of the indemnification provided in Section 8.3, but without limiting the foregoing, Grantee shall file with Commission at the time of its acceptance of this Franchise, and at all times thereafter maintain in full force and effect at its sole expense, a comprehensive general liability insurance policy, including broadcaster's/cablecaster's liability and contractual liability coverage, in protection of the Grantee, and the City, Commission, its officers, elected officials, boards, commissions, agents and employees for any and all damages and penalties which may arise as a result of this Franchise. The policy or policies shall name the City and Commission as an additional insureds, and in their capacity as such, City and Commission officers, elected officials, boards, commissions, agents and employees.

b. The policies of insurance shall be in the sum of not less than $1,000,000.00 for personal injury or death of any one Person, and $2,000,000.00 for personal injury or death of two or more Persons in any one occurrence, $500,000.00 for property damage to any one person and $2,000,000.00 for property damage resulting from any one act or occurrence.

c. The policy or policies of insurance shall be maintained by Grantee in full force and effect during the entire term of the Franchise. Each policy of insurance shall contain a statement on its face that the insurer will not cancel the policy or fail to renew the policy, whether for nonpayment of premium, or otherwise, and whether at the request of Grantee or for other reasons, except after sixty (60) days advance written notice have been provided to Commission.

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