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ARTICLE II. GRANT OF AUTHORITY AND GENERAL PROVISIONS SECTION 1. GRANT OF FRANCHISE AND ACCEPTANCE ( City hereby grants to Grantee, to be effective upon certification by Board, a nonexclusive franchise subject to all of the terms and conditions as herein provided: A. Grantee shall accept this Franchise in the following manner, and not later than the time set out in Article XIV, Section 2: (1) This franchise will be properly executed and acknowledged by Grantee and delivered to City. (2) At the same time as delivery of the executed Franchise, Grantee shall deposit with the City its nonrefundable acceptance fee in the sum of for the purpose of defraying the costs and expenses of developing this Franchise and for the enforcement and administration costs to be incurred until Franchise fees may be realized. After the initial payment of the acceptance fee, should costs in excess of the acceptance fee be incurred by City prior to the payment of the first Franchise fee, City may charge such excess costs to Grantee and Grantee shall pay them on demand by City, as an advance on the payment of Franchise fees. (3) All security deposits, Letters of Credit, certificates of insurance, acceptances, bonds, attorneys' opinions, organizational and creation documents and guarantees required by Grantee by this Franchise, shall be delivered with the executed Franchise in accordance therewith. SECTION 2. AUTHORITY GRANTED ( A. City grants to Grantee permission to use streets for erecting, constructing, operating, and maintaining the System. Other rights necessary for the System on other public or private property must be obtained by Grantee, but City shall have no obligation to give or grant or assist in obtaining the same. B. Grantee shall construct and maintain the System so as not to - 6 -