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6.1.A. - Page 7 <br /> 3.6 This Agreement shall be for the non-exclusive use of the Public Rights-Of-Way. By <br /> executing this Agreement, City does not agree to restrict the use of the Public Rights-Of-Way in all <br /> or any part of the City by any person in the same business, a related business, or a competing business <br /> as Company. <br /> 3.7 Company is not authorized to use any City property located outside of the Public <br /> Rights-Of-Way nor any City-owned infrastructure located within the Public Rights-Of-Way without <br /> the prior express written agreement of the City. <br /> ARTICLE 4 <br /> REQUIRED CASH DEPOSIT OR BOND <br /> 4.1 Security. Company will furnish and deliver to City,the following securities, each of <br /> which must be issued by a surety company duly and regularly authorized to do general surety business <br /> in the State of California, or such other surety as may be acceptable to the City Engineer: <br /> (a) Performance Security. Company shall furnish and deliver a <br /> performance security(the "Durable Performance Security") in the amount of two hundred thousand <br /> dollars ($200,000), concurrently with the execution of this Agreement, which security must be <br /> acceptable to the City Engineer and shall be in substantially the form attached hereto as Exhibit A. <br /> The Durable Performance Security shall be conditioned upon the faithful performance of this <br /> Agreement and any work performed thereunder and shall be released by City one-year following the <br /> termination of this Agreement. This one (1) year period is to guarantee that any work is of good <br /> quality and free from any defective or faulty materials or workmanship. City may draw on the <br /> Durable Performance Security in the event of a default by Company or in the event that Company <br /> fails to fulfill any of its obligations under this Agreement. City may also draw on the Durable <br /> Performance Security to cover any reimbursements owed to City by Company. If City draws on the <br /> Durable Performance Security, it will notify Company of the amount drawn, and Company will <br /> promptly restore the Durable Performance Security to the full amount of two hundred thousand <br /> dollars ($200,000). In the event that a bond issued pursuant to this Section of this Agreement is <br /> canceled by the surety, after proper notice and pursuant to the terms of said bond, Company shall, <br /> prior to the expiration of said bond,procure a replacement bond that complies with the terms of this <br /> Section of this Agreement. <br /> (b) Payment Security. Company shall furnish and deliver a labor and <br /> materials security(the "Durable Payment Security") in the amount of two hundred thousand dollars <br /> ($200,000), concurrently with the execution of this Agreement,which security must be acceptable to <br /> the City Engineer and shall be in substantially the form attached hereto as Exhibit B. The Durable <br /> Payment Security shall secure payment to the contractor(s) and subcontractor(s) performing any <br /> work subject to this Agreement and to all persons furnishing labor, materials or equipment to them <br /> (each a potential "Claimant"). If City draws on the Durable Payment Security to pay any claimant, <br /> it will notify Company of the amount drawn, and Company will promptly restore the Durable <br /> Payment Security to the full amount of two hundred thousand dollars ($200,000). City shall retain <br /> the Durable Payment Security until both(i) one(1)year after the date this Agreement terminates and <br /> (ii)the applicable statute of limitations to file an action has expired. <br /> ATTY/AGR/2015.260/OPTIC ACCESS,LLC FIBER OPTIC FACILITIES <br /> REV:01-07-16 JS&VR <br /> Page 5 of 20 <br />