§ 26-6. Franchise fee; liability and indemnification.

(a)

Within the limits of the Federal Communications Commission regulations, the franchise agreement shall prescribe a fee which shall be at least sufficient to cover the estimated cost of further investigation of the successful CATV application and the establishment and operation procedures for CATV operation. Such fee shall be paid in accordance with terms set forth in the franchise agreement.

(b)

Concurrently with the acceptance of its franchise, the franchisee shall file with the town a bond with an acceptable surety in an amount set by the town to indemnify and hold harmless the town against any losses it may suffer in the event the franchisee fails to comply with one or more of the provisions of its franchise. Such bond shall be obtained at the sole expense of the franchisee and remain in effect for the full term of the franchise or any renewal thereof, plus an additional six (6) months thereafter.

(c)

The franchisee shall pay, and by its acceptance of a franchise specifically agrees to pay, any and all damages or penalties which the town may be legally required to pay as a result of franchisee's installation, operation or maintenance of a franchise cable television system under this chapter whether or not the acts or omissions complained of are authorized, allowed or prohibited by the town.

(d)

The franchisee shall also pay all expenses incurred by the town in defending itself with regard to any and all damages and penalties mentioned in subsection (c) above. These expenses shall include all out-of-pocket expenses, including reasonable attorneys' fees and the reasonable value of services rendered by any employee of the town.

(e)

The franchisee shall maintain, throughout the term of the franchise, liability insurance insuring the town and the franchisee with regard to all damages mentioned in subsection (c) above, caused by franchisee or its agents, in such amounts as may be set forth in the franchise.

(Ord. No. 3-80, 6-12-80)