Ord04 2275 - Laserfiche WebLink

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ORIGINAL AMENDMENT NO.1 TO CABLE SYSTEM FRANCHISE AGREEMENT BETWEEN THE CITY OF REDWOOD CITY AND RCN TELECOM SERVICES, INC. The Cable System Franchise Agreement, effective August 28, 2000 (the "Franchise Agreement"), between the City of Redwood City, California (the "City" or "Grantor") and RCN Telecom Services, Inc., formerly RCN Telecom Services of California, Inc. ("Grantee"), is hereby amended as follows: 1. This Amendment NO.1 shall become effective on the day that the last of the Cities of Belmont, Burlingame, Millbrae, Redwood City and San Carlos have executed similar Franchise amendments with Grantee ("Effective Date of this Amendment No.1"). 2. Section 3.6(a) of the Franchise Agreement is deleted and replaced by the following: Grantee shall indemnify, hold harmless, release and defend Grantor, its officers, employees and agents from and against any and all actions, claims, demands, damages, disability, losses, expenses including attorney's fees and other defense costs or liabilities of any nature that may be asserted by any person or entity, including Grantee, from any cause whatsoever arising from the granting or amending of the Franchise, or from the activities of Grantee, its subcontractors, employees and agents hereunder. Grantee shall be solely responsible and hold Grantor harmless from all matters relative to payment of Grantee's employees including, but not limited to, compliance with Social Security and withholding requirements. 3. Sections 3.7(a) and 3.7(b) ("Security Fund") of the Franchise Agreement are deleted and replaced by the following: (a) As of the Effective Date of Amendment No.1, Grantee shall establish to the account of Grantor, either an irrevocable letter of credit, acceptable to Grantor's City Attorney, or a cash deposit in a local bank, in the amount of Fifty Thousand Dollars ($50,OOO)(the "Incentive Fund"). (b) For each year, starting from the Effective Date of Amendment No.1, during which Grantee fails to complete Significant Cable System Construction, Grantor may withdraw Ten Thousand Dollars ($10,000) from the Incentive Fund. For example, if Grantee has failed to complete Significant Cable System Construction by the Effective Date of this Page 1 of 10