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<br />arising in connection with the installation, maintenance and operation of Grande's facilities. Grande will <br />defend at its expense all actions that may be commenced against the City in connection with the <br />installation, maintenance and operation of Grande's facilities. The selection of legal counsel for any <br />such defense will be at the sole discretion of the City. The specification of minimum coverage limits in <br />this section does not limit Grande's indemnity obligations in any way. <br /> <br />C. Grande will maintain in full force and effect the following types of liability insurance issued by a <br />company authorized to do business in Texas in at least the following coverage amounts: <br /> <br /> <br />Per occurrence <br />$4,000,000 <br />Statuto <br />$4,000,000 <br /> <br /> <br />Or CSL/Umbrella <br />$5,000,000 <br />Statutor <br />$5,000,000 <br /> <br />Section 4. Facilities Construction; Service Availability. <br /> <br />A. Grande will complete the sonnet ring fiber optic backbone of Grande's facilities by June 1, 2003. As <br />of that date, Grande will make cable service available to 25% of the residences within the City. As of <br />June 1,2004, Grande will make cable service available to 50% of the residences within the City. If <br />Grande does not complete construction of Grande's facilities throughout the City at the same time, <br />Grande will give written notice to the City of the date for initiation of service to each area of the City <br />in which Grande is completing construction. As of June 1, 2005, Grande will make cable service <br />available to every residence within the City. <br /> <br />B. Grande will install Grande's facilities in compliance with all applicable laws and regulations, <br />including the City requirements and the regulations of the FCC and the Federal Aviation Administration. <br /> <br />C. Grande will extend Grande's facilities and make cable services available to new residential areas <br />within the City whenever density of at least 25 residential units per cable mile is realized, as measured <br />from Grande's facilities then existing. Measurement of cable length will not include service drops to <br />residences. <br /> <br />D. Grande will extend Grande's facilities and make cable services available to any residence or business <br />where the potential customer agrees to pay the cost of the extension. <br /> <br />Section 5. Operation and Maintenance of Grande's Facilities. <br /> <br />A. Grande will operate and maintain Grande's facilities so that they produce audio and visual signals <br />that are clear and undistorted, and as good as state-of-the-art cable service technology allows as of the <br />effective date of this Agreement and throughout the term of this Agreement. <br /> <br />B. Grande will operate and maintain Grande's facilities in compliance with all applicable laws and <br />regulations, including the City requirements and the regulations of the FCC and the Federal Aviation <br />Administration. Grande will install, operate and maintain Grande's facilities so that they do not cause <br />cross-modulations in the cable or interference with other electrical or electronic systems. <br /> <br />C. Grande will maintain an office in the City that will be open during normal business hours, and will <br />have a local listed telephone number to receive complaints and requests for repairs or adjustments at any <br />time, 24 hours per day, seven days per week. Grande will maintain a force of one or more residing agents <br />or employees at all times and will have sufficient employees to provide safe, adequate, and proper <br />services for Grande's facilities. Grande will locate and correct malfunctions in Grande's facilities <br />promptly. If a customer is not satisfied with the resolution of a service complaint after contacting the <br />local office twice for the saIne complaint, then en th~ thjrd contact tbe c.omplaint ,,,ill be handled <br />personally by Grande's local office manager. <br /> <br />D. Grande will notify all customers by mail of all channel changes at least 30 days prior to each change. <br /> <br />E. Grande will provide electronic devices for sale to customers which will allow the customer, at the <br />customer's discretion, to prevent selected channels from reaching the customer's receiver devices, at <br />Grande's cost plus 10%. <br /> <br />F. Grande will employ a trained and competent staff for the installation, operation and maintenance of <br /> <br />C:\TEMP\Grande Franchise final. doc <br /> <br />3 <br />