(A) A grantee shall indemnify, defend, and hold harmless the grantor, its officers, boards, committees, commissions, elected officials, employees, and agents, from and against all liability, damages, and penalties which they may legally be required to pay as a result of the exercise of a franchise granted pursuant to this chapter, except claims covered by worker’s compensation insurance or any claims arising from or related to grantor’s negligence. Nothing in this chapter relieves a person from liability arising out of the failure to exercise reasonable care to avoid injuring the grantee’s facilities while performing work connected with grading, regrading, or changing the line of a street or public place or with the construction or reconstruction of a sewer or water system.
(B) In order for the grantor to assert its rights to be indemnified, defended, and held harmless, the grantor must with respect to each claim:
(1) Promptly notify a grantee in writing of any claim or legal proceeding which gives rise to such right;
(2) Afford grantee the opportunity to participate in and fully control any compromise, settlement, or other resolution or disposition of any claim or proceeding; and
(3) Fully cooperate with reasonable requests of the grantee, at the grantee’s expense, in its participation in, and control, compromise, settlement, resolution, or other disposition of such claim or proceeding subject to division (B)(2) above.
(Prior Code, § 10.0601)