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Section 2.03. The parties agree that the City will issue Permits to the Licensee only when the City determines, in its sole judgment, that 1) the City has sufficient capacity on the Poles to accommodate the proposed Attachments, 2) the Licensee meets all requirements set forth in this Agreement, and 3) the Permit complies with all of the Applicable Standards. The parties further agree that the Licensee's use of the Poles is subject to the City's right to reclaim Reserved Space in accordance with this Agreement. Section 2.04. No use by the Licensee of any of the City Facilities, regardless of nature or duration, and no payment of any fees or charges required under this Agreement, will create or vest in the Licensee any easements or other ownership or property rights of any nature in any of the City Facilities. After issuance of any Permit, the Licensee will be and remain a mere licensee. This Agreement, and any Permit granted under this Agreement, will not constitute an assignment of any of the City's rights to the City Facilities. Section 2.05. This Agreement does not grant any right to the Licensee to place Attachments on any specific Pole, or to compel the City to grant the Licensee a Permit to place Attachments on any specific Pole. Section 2.06. The Licensee will obtain all necessary certifications, permits, and franchises from Federal, state and local authorities prior to making any Attachments. The Licensee is subject to all applicable provisions of Chapter 283 of the Texas Local Government Code with respect to Telecommunications Service provided by the Licensee through the Licensee's Facilities located within or across public right -of -way of the City. Section 2.07. This Agreement does not in any way limit the City's right to locate, operate and maintain the Poles in the manner the City believes will best enable it to fulfill its own service requirements. Section 2.08. This Agreement does not require the City to install or retain any Pole for use by the Licensee when the City determines that the Pole is not needed for City's own service requirements. Section 2.09. This Agreement will not limit, restrict, or prohibit the City from fulfilling any agreements or arrangements regarding the Poles into which the City has previously entered with Other Licensees. Section 2.10. This Agreement will only apply to the Poles associated with the City's electric distribution system, and not to any City Facilities associated with the generation or transmission of electric power. This Agreement does not authorize the Licensee's use of any of the City's Conduit System. Section 2.11. This Agreement will not be construed to require the City to allow the Licensee to use the Poles after the termination of this Agreement. Section 2.12. This Agreement is limited to the Licensee's use of the Poles for the Licensee's Facilities as defined in Article 1, and any other use will be considered a default of this Agreement unless authorized by separate agreement between the parties. 4 CADocuments and Settings \tamara.slade \Local Settings \Temporary Internet Files \Content.Outlook \F3JWG5DH \San Marcos PAA_FINAL_CLEAN_10 17 2011.doex