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ENCROACHMENT AGREEMENT RE FIBER OPTIC SYSTEM THIS ENCROACHMENT AGREEMENT is entered into this ~ day of i~G~t, 1998, by and between the CITY OF PLEASANTON, a Municipal Corporation of the State of California ("City"), and Electric Lightwave, Inc., a corporation organized and existing under the laws of the State of Delaware ("Company"). RECITALS A. City owns the right of way ("Right of Way") along all City streets, alleys, sidewalks, and other public places in the City of Pleasanton. B. Company has submitted an Application for an Encroachment Permit, dated 1998, attached hereto as Exhibit "A" to construct and maintain a fiber optic system ("the Project") in the Right of Way. Applications submitted to secure permits for subsequent projects shall be attached to this Agreement as consecutive exhibits B, C, D, and so forth. C. The Project, as proposed, does not interfere with the City's uses of the Right of Way. NOW, THEREFORE, in consideration of the faithful performance of the terms and conditions set forth in this Agreement, the parties agree as follows: 1. DEFINITIONS. a. "City" refers to the City of Pleasanton, its officers, employees, agents and contractors. b. "City's representative" refers to the City Engineer for the City of Pleasanton. 2. ENCROACHMENT. Subject to this Agreement, City shall allow Company to install and maintain the Project in the Right of Way but only as shown on the attached Exhibit A. Subsequent installations shall be subject to additional Encroachment Permits granted under this Agreement. Any installation or maintenance of the Project outside the approved boundaries of each Encroachment Permit granted under this Agreement is prohibited. 3. COMPANY'S RESPONSIBILITIES. Company shall be responsible for the following: a. Any costs, including but not limited to any reasonable attorney's fees, incurred by City at any time which are associated with Company's Electric Lightwave Encroachment Agreement