SECTION 11 . - Insurance.

(a) During the initial term, the renewal term, or any other extension of this Franchise Agreement, Level 3 shall obtain and maintain insurance coverage, at its sole cost and expense, with financially reputable insurers that are licensed to do business in the State of Kansas. Should Level 3 elect to use the services of an affiliated captive insurance company for this purpose, Level 3 shall obtain and possess a certificate of authority from the Kansas Insurance Commissioner. Level 3 shall provide not less than the following insurance:

(1)

Worker's compensation as provided for under any workers' 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 ($2,000,000.00) combined single limit per occurrence for bodily injury, personal injury, and property damage liability. The City shall be named as an additional insured with respect to liability arising from Level 3's operations under this Franchise Agreement. Level 3 may utilize a combination of primary and umbrella liability insurance policies to satisfy the insurance policy limit requirements herein.

(b)

As an alternative to the requirements of Section 11(a), supra, Level 3 may demonstrate to the satisfaction of the City that it is self-insured and that it has the wherewithal to provide coverage in an amount no less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) in aggregate to protect the City from and against all claims by any person for loss or damage from death, personal injury, bodily injury, or property damage occasioned by Level 3 or so alleged to have been caused or to have occurred.

(c)

Level 3 shall, as a material condition of this Franchise Agreement, prior to the commencement of any work, deliver to the City a certificate of insurance or evidence of self-insurance evidencing that the above insurance is in force and will not be cancelled without first giving the City thirty (30) days prior written notice. Level 3 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)

Level 3 shall, as a material condition of this Franchise Agreement, prior to the commencement of any work hereunder, deliver to the City satisfactory evidence of a performance bond in the amount of Twenty Thousand Dollars ($20,000.00) payable to the City. The bond shall be used to ensure the appropriate and timely performance in the construction and maintenance of Facilities located in the Public Rights of Way and must be issued by a surety company authorized to transact business in the State of Kansas and satisfactory to the City Attorney or to the City's Legal Department in form and substance. The performance bond shall remain in effect the entire term of the Ordinance to ensure the ongoing performance of the terms and obligations of the franchise as well as any future phases of construction and/or repair work. Notwithstanding the foregoing sentence, the City reserves the right to require Level 3 to provide additional financial assurance for future phases of construction and/or repair work, as reasonably determined by the City.