§ 1060-210. FAITHFUL PERFORMANCE BOND

(a)

The Grantee, concurrently with the filing of an acceptance of award of any franchise granted under this chapter, shall furnish to the Grantor and file with the Grantor's Clerk, and at all times thereafter maintain in full force and effect for the term of such franchise or any renewal thereof, at Grantee's sole cost and expense, a corporate surety bond issued by a company approved by the Grantor's Finance Officer and in a form approved by the Grantor's Attorney, in an amount to be determined by Grantor and established in the franchise agreement but not to exceed one million dollars ($1,000,000.00) renewable annually, and conditioned upon the faithful performance of the Grantee of all of the Grantee's obligations under this chapter and any franchise agreement, and upon the further condition that in the event Grantee shall fail to comply with any one or more of the material provisions of this chapter or of any franchise issued to the Grantee under this chapter, there shall be recoverable jointly and severally from the principal and surety of such bond any damages or loss suffered by the Grantor as result thereof, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the Grantee as prescribed hereby which may be in default, plus a reasonable allowance for attorneys' fees and costs, up to the full amount of the bond; said condition to be a continuing obligation for the duration of such franchise and any renewal thereof and thereafter until the Grantee has liquidated all of its obligations with the Grantor that may have arisen from the acceptance of said franchise or renewal by the Grantee or from its exercise of any privilege therein granted. The bond shall provide that 30 days prior written notice of intention not to renew, cancellation, or material change, to be given to the Grantor. At the end of the first two (2) years of the term of this franchise, the amount of the aforesaid corporation surety bond which the franchise holder shall maintain in full force and effect for the remainder of the term of the franchise shall be in an amount to be determined by Grantor but not to exceed two hundred and fifty thousand dollars ($250,000.00) but shall correspond in all other particulars to the bond required during the first two years of the term as required hereinabove.

(b)

Neither the provisions of this section, nor any bond accepted by the Grantor pursuant hereto, nor any damages recovered by the Grantor pursuant hereto, nor any damages recovered by the Grantor thereunder, shall be construed to excuse faithful performance by the Grantee or limit the liability of the Grantee under any franchise issued under this chapter or for damages, either to the full amount of the bond or otherwise.