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<br />'- ' <br /> <br />) <br /> <br />3.11 Contractor's Payment Bond. Upon the effective <br />date of the franchise, Grantee shall file with the Clerk of <br />the Council a contractor's payment bond on a form satisfactory <br />to Grantor's attorney to secure the claims to which reference <br />is made in Title 15 (commencing with Section 3082) of Part 4 <br />of Division 3 of the Civil Code of the State of California, <br />in the sum of one million dollars ($1,000,000.00), which <br />bond shall be released by Grantor upon completion of construction <br />as herein provided. <br /> <br />SECTION 4. <br /> <br />CONSTRUCTION AND SERVICE REQUIREMENTS <br /> <br />4.1 General. Grantee shall meet or exceed all the <br />material construction and service requirements set out in <br />this agreement and in addition shall meet or exceed those <br />material service requirements set out in Grantee's franchise <br />application, a copy of which is on file in the Office of <br />Grantor's Clerk of the Council and to which reference is <br />hereby made for full particulars. Grantee shall meet the <br />service requirements regardless of whether subscriber pene- <br />tration and/or revenue projections contained in the ap- <br />plication prove to be correct. It is Grantor's intent Grantee <br />shall not be penalized for minor breaches of the terms hereof <br />so long as Grantee's best efforts are maintained. <br /> <br />4.2 Construction Schedule. Grantee shall complete <br />construction and offer service within the time or times set <br />forth in the Schedule of Performance, attached hereto as <br />"Exhibit A" and incorporated herein by reference, or within <br />such reasonable extensions of such times as may be granted <br />by Grantor or as provided in Section 15 of this agreement. <br />Grantee shall make a good faith and diligent effort to obtain <br />all necessary utility agreements, permits and clearances. <br /> <br />4.3 Penalties for Delay in Construction. Grantor, at <br />its option, may apply anyone or more of the following pen- <br />alties if Grantee fails to perform construction and/or offer <br />service within the time or times set forth in "Exhibit A," <br />the Schedule of Performance: <br /> <br />(a) For each month of delay exceeding three (3) <br />months, Grantor's City Manager may reduce the term of <br />the franchise one (1) month. <br /> <br />(b) For a delay exceeding one (1) year, Grantor's <br />City Manager may require forfeiture of the faithful per- <br />formance bond required hereunder, <br /> <br />(c) For a delay exceeding eighteen (18) months, <br />Grantor's City Manager may terminate the franchise <br />and this agreement. <br /> <br />-11- <br />