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indemnification responsibilities to the City regarding the proper functioning of the EAS as required by section 4.8 of this Franchise. SECTION 9 - System Description and Service 9.1 System Capacity. During the tenn of this Franchise the Grantee's Cable System shall be capahle of providing a minimum of 60 channels of Video Programming with satisfactory reception available to its Customers in the Franchise Area. 9.2 Service to School and Government Buildin~. The Grantee shall provide Cable Service as set forth in Section 15.2-2108.22(9) of the Virginia Code. SECTION 10- Enforcement of Franchise 10.1 Non-compliance procedures. Should the City believe that the Grantee has not complied with any of the provisions of this Franchise, it shall: (i) infonnally discuss. the matter with the cable operator in the event that the City believes that the Grantee has not complied with the tenns of this Franchise, the City Code, the Code of Virginia or the Cable Act; and (ii) notify the Grantee in writing of the nature of the alleged noncompliance ifthe discussions set forth above do not lead toresolution of the allegt.d noncompliance. The Grantee shall have fifteen (IS) days from receipt of this written notice to:'(a) respond to the City, if the Grantee contests, in wh01e or In part, the assertiOd of noncomplicnce; (b) cure such default; or (c) in the event that, by the nature of default, such default cannot be cured within the IS-day period, initiate reasonable steps to remedy such default and notify the City of the steps being taken and the projected date that they will be completed. The City shall schedule a public hearing in the event that the Grantee. fails to respond to the written notice pursuant to these procedures or in the event that the alleged default is not remedied within thirty (30) days of the date projected above if the City intends to continue its investigation into the default. The City shall provide the Grantee at least thirty (30) business days prior written notice of such hearing, which will specify the time, place, and purpose and provide the Grantee an opportunity to be heard. 10.1.1. _Liquidated Damages. Because it may be difficult to calculate the hann to the City in the event of a breach of this Franchise by Grantee. the parties agree to liquidated damages as a reasonable estimation of the actual damages. Nothing in this Section is intended to preclude the City from exercising any other lawful right or remedy with respect to a breach. Liquidated damages shall not be assessed until the City has completed the procedures set forth in Section 8.1 hereof, including holding a public hearing, and has notified in accordance with Section 11.2 hereof, the Grantee of the proposed liquidated damage, specifying the violation at issue. The Grantee shall have ten (10) days from the date of receipt of the written notice to submit payment. If the Grantee does not make payment within that period, the City may obtain the amount assessed from the Grantee's perfonnance bond. ')1)3461 \'2 II