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<br />17 . <br /> <br />Term of Grant <br /> <br />17.01 The authority and rights granted here shall be <br />in full force and effect for a term of twenty (20) years <br />beginning January 1, 1990 (the day following the expiration of <br />the existing agreement between Karnack and the City of San <br />Marcos) and continuing for twenty (20) years subject to the <br />provisions of this agreement. <br /> <br />17.02 Within six months after the expiration of each <br />successive five year period the City may initiate a review of the <br />performance of Karnack under this agreement. To determine <br />satisfactory performance, the City shall consider technical <br />developments, shall compare Karnack's performance with that of <br />other systems of comparable population in the area as determined <br />by the Texas Municipal League (eg. New Braunfels, Seguin) and <br />review compliance with the terms of this agreement. If after <br />this review the performance of Karnack is deemed unsatisfactory <br />the City shall notify Karnack in writing of the specific areas of <br />inadequate performance and shall give Karnack a reasonable time <br />to correct. If Karnack does not correct the inadequa~e <br />performance within this reasonable time this franchise may be <br />voided. <br /> <br />18. <br /> <br />Forfeiture of Grant <br /> <br />18.01 In addition to all other rights and powers <br />pertaining to the City by virtue of this grant or otherwise, the <br />City reserves the right to terminate this grant and all rights <br />and privileges of Karnack in the event that Karnack: <br /> <br />(A) violates any provision of this grant or any rule, <br />order, or determination of the City or City Council made pursuant <br />to this grant after thirty (30) days written notice from the City <br />of such determination of violation and the failure on the part of <br />Karnack, due to its negligence or refusal to cease and desist <br />from any such violation or failure to comply. <br /> <br />(B) fails to exercise diligence in expanding the <br />system after initial commencement, or fails or ceases to furnish <br />the services described here. If Karnack should fail to comply <br />with any provisions of this agreement or default in any of its <br />obligations and shall fail, within thirty (3D) days after written <br />notice from City, to correct such fault, non-compliance or <br />breach, City may, at its option, forthwith terminate in whole or <br />part, Karnack's rights and require Karnack to remove all of its <br />equipment iOnstalled anywhere in the City. If Karnack should fail <br />to remove any of the equipment, City shall have the right to <br />remove it at Karnack's cost. <br /> <br />(C) attempts to evade any of the provisions of this <br />franchise or practices any fraud or deceit upon the City. <br /> <br />18.02 Such termination and cancellation shall be <br />made by the City giving thirty (30) days written notice to <br />Karnack. Karnackls subsequent failure to reasonably comply <br />shall in no way affect any of the Cityls rights under this <br />franchise or any provision of law. In the event that termination <br />and cancellation depends upon a finding of fact, the finding of <br />fact shall be made by a court of competent jurisdiction. <br />Provided, however, that before this franchise may be terminated <br />and canceled under this section, both Karnack and the City shall <br />have the right to appeal the finding to any appellate court of <br />competent jurisdiction. <br /> <br />18.03 The failure of the City to enforce any of <br />these provisions with respect to a breach in anyone instance or <br />number of instances shall not be construed as relinquishment or <br />waiver under this agreement and it shall nevertheless remain in <br />full force and effect. <br /> <br />- Page 8 - <br />