(a) Performance Bond to Town. Concurrent with the award of a Franchise to it, a Cable Operator shall file with the Town Clerk and shall thereafter annually during the entire term of such Franchise maintain in full force and effect at its own cost and expense a performance bond in the amount of at least~ $100,000 to guarantee the faithful performance by the Cable Operator of all of its obligations under its Franchise Agreement. Upon completion of any required construction or rebuild of the Cable System required by the terms of this Ordinance or the applicable
Franchise Agreement, the performance bond shall be reduced to fifty thousand dollars ($50,000) for the remainder of the term of the Franchise Agreement. The Town agrees to execute such documents as are necessary for said reduction of the Performance Bond. The bond or fund shall be so conditioned that in the event that the Cable Operator shall fail to comply with any one or more material provisions of this Ordinance or of such Franchise Agreement and subsequent to any notice and opportunity to cure provision of this Ordinance or the Franchise Agreement, then the Town may recover from the surety any penalties assessed in accordance with Section 10 of this Ordinance and any damages or costs suffered or incurred by the Town as a consequence of such breach. Said conditions shall be a continuing obligation during the entire term of the Franchise Agreement. Not less than thirty (30) days’ prior notice to the Town shall be provided of the Cable Operator’s or the surety’s
intention to cancel, materially change, or not to renew the performance bond or security fund. In the event that the Town recovers against any portion of the performance bond, the Cable Operator shall be required to replenish the original bond in an amount equal to the amount recovered by the Town within 30 days. Failure to post an additional bond on a timely basis shall constitute a violation of a material provision of this Franchise Agreement.
(b) Hold Harmless Agreement. Any Franchise Agreement shall include provisions whereby the Cable Operator agrees to defend, indemnify and hold harmless the Town and its agents from claims and liabilities arising out of the Cable Operator’s construction, ownership, operation, maintenance, repair and control of the Cable System.
(c) Insurance. Cable Operator shall maintain during the full term of this Franchise Agreement such insurance as will protect it and Grantor from any claims which may arise directly or indirectly or result from Cable Operator’s ownership, construction, repair, operation or maintenance of Cable Operator’s cable system serving Sebago, whether such activities are performed by Cable Operator, or by anyone for whose acts Cable Operator may be liable, under the following policies:
(1) Workers’ Compensation and any other legally required employee benefits, shall be supplied in such amounts as required by law;
(2) Property insurance, all risk, replacement cost basis, on all insurable Cable Operator assets in the Town;
(3) General Liability insurance shall be supplied in the following amount: combined single limit for bodily injury, personal injury, death or property damage in the amount of at least $3,000,000 per occurrence (which may be supplied by a combination of primary and excess policy limits).
(d) Non-waiver. Neither the provisions of this Section, nor any bonds accepted by the Town pursuant hereto, nor any damage recovered by the Town there under, shall be construed to excuse unfaithful performance by the Cable Operator or limit the liability of the Cable Operator under this Ordinance or the Franchise Agreement for damages, either to the full amount of the bond or otherwise.