§ 8. Insurance Requirement and Performance Bond.

(a) During the term of this Franchise, Kansas Fiber Network, L.L.C shall obtain and maintain insurance coverage at its sole expense, with financially reputable insurers that are licensed to do business in the state of Kansas. Should Kansas Fiber Network, L.L.C. elect to use the services of an affiliated captive insurance company for this purpose, that company shall possess a certificate of authority from the Kansas Insurance Commissioner. Kansas Fiber Network, L.L.C. shall provide not less than the following insurance:

(1)

Workers' compensation as provided for under any worker's compensation or similar law in the jurisdiction where any work is performed with an employers' liability limit equal to the amount required by law.

(2)

Commercial general liability, including coverage for contractual liability and products completed operations liability on an occurrence basis and not a claims made basis, with a limit of not less than Two Million Dollars ($2,000,000) combined single limit per occurrence for bodily injury, personal injury, and property damage liability. The City shall be included as an additional insured with respect to liability arising from Kansas Fiber Network, L.L.C. operations under this ordinance.

(b)

As an alternative to the requirements of subsection (a), Kansas Fiber Network, L.L.C. may demonstrate to the satisfaction of the City that it is self-insured and as such Kansas Fiber Network, L.L.C. has the ability to provide coverage in an amount not less than one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) in aggregate, to protect the City from and against all claims by any person whatsoever for loss or damage from personal injury, bodily injury, death or property damage occasioned by Kansas Fiber Network, L.L.C., or alleged to so have been caused or occurred.

(c)

Kansas Fiber Network, L.L.C. shall, as a material condition of this Franchise, prior to the commencement of any work and prior to any renewal thereof, deliver to the City a certificate of insurance or evidence of self-insurance, satisfactory in form and content to the City, evidencing that the above insurance is in force and will not be cancelled or materially changed with respect to areas and entities covered without first giving the City thirty (30) days prior written notice. Kansas Fiber Network, L.L.C. shall make available to the City on request the policy declarations page and a certified copy of the policy in effect, so that limitations and exclusions can be evaluated for appropriateness of overall coverage.

(d)

Kansas Fiber Network, L.L.C. shall, as a material condition of this Franchise, prior to the commencement of any work and prior to any renewal thereof, deliver to the City a performance bond in the amount of one hundred thousand dollars ($100, 000,) payable to the City to ensure the appropriate and timely performance in the construction and maintenance of facilities located in the right-of-way. Said bond shall be maintained in full force and effect for the term of such franchise and any renewal thereof. In the event Kansas Fiber Network, L.L.C. fails within a reasonable time after notice that it is not in compliance with one or more of the provisions of this franchise issued to it, the City shall recover, jointly and severally from the principal and surety of such bond, any damages or loss suffered by the City as a result thereof, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of Kansas Fiber Network, L.L.C, as prescribed hereby which may be in default, plus a reasonable allowance for attorney's fees and costs up to the full amount of the bond. The required performance bond must be with good and sufficient sureties, issued by a surety company authorized to transact business in the State of Kansas, and satisfactory to the City Attorney in form and substance.