Ord04 2275 - Laserfiche WebLink

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Amendment No.1, Grantor may immediately withdraw Ten Thousand Dollars ($10,000) from the Incentive Fund. If Grantee has not completed Significant Cable System Construction before August 28, 2005, Grantor may withdraw Ten Thousand Dollars ($10,000) from the Incentive Fund, if Grantee has not completed Significant Cable System Construction by August 28, 2006, Grantor may withdraw Ten Thousand Dollars ($10,000) from the Incentive Fund, and so on. If the Incentive Fund is in the form of a letter of credit, Grantee shall not oppose such withdrawal. For the purposes of this Section, "Significant Cable System Construction" shall mean the activation of at least twenty (20) new, or previously not activated, nodes during said year. (c) On or before the Effective Date of Amendment No.1, Grantee shall also establish a security fund (the "Security Fund") as security for the faithful performance by Grantee of all material provisions of this Agreement. Such Security Fund shall be in the form of an irrevocable letter of credit established to the account of Grantor in the amount of Fifty Thousand Dollars ($50,000), and shall be maintained throughout the Term of this Agreement; provided that, at intervals of three (3) years, Grantor shall have the right to require that this amount be increased to reflect changes in the San Francisco Metropolitan Consumer Price Index during the prior three year period. (d) In the event that Grantee intends to commence Significant Cable System Construction, no later than ninety (90) days prior to the start of such construction the Grantee also shall obtain and provide proof of a performance bond (the "Construction Performance Bond") from a surety admitted in the State of California in favor of the Grantor in the amount of Two Hundred Fifty Thousand Dollars ($250,000) to be maintained by Grantee until the completion of such Significant Cable System Construction, at which time the bond shall be released upon written notice by Grantee to the Grantor, provided there are then no outstanding material violations of this Agreement. (e) Significant Cable System Construction will be measured from August 28 through the immediately subsequent August 27 (the "Construction Year"). In the event Grantee completes Significant Cable System Construction during a Construction Year, Grantor shall not withdraw any funds from the Incentive Fund for that year. If the Grantee completes construction of the Cable System prior to the expiration of the Franchise Agreement, Grantee shall be entitled to recover any balance remaining in the Incentive Fund at the time of completion of Cable System construction. If the Grantee does not complete construction of the Cable System prior to expiration of the Franchise Agreement, any funds remaining in the Incentive Fund will become the property of the Grantor. If the Incentive Page 2 of 10