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3.6 This Agreement shall be for the non-exclusive use of the Public Rights-0f-Way. By executing this Agreement, City does not agree to restrict the use of the Public Rights-Of-Way in all or any part of the City by any person in the same business, a related business,or a competing business as Company. 3.7 Company is not authorized to use any City property located outside of the Public Rights-0f-Way nor any City-owned infrastructure located within the Public Rights-Of-Way without the prior express written agreement of the City. ARTICLE 4 REQUIRED CASH DEPOSIT OR BOND 4.1 Security. Company will furnish and deliver to City, the following securities, each of which must be issued by a surety company duly and regularly authorized to do general surety business in the State of California, or such other surety as may be acceptable to the City Engineer: (a) Performance Securitv. Company shall furnish and deliver a performance security (the "Durable Performance Security") in the amount of two hundred thousand dollars ($200,000), concurrently with the execution of this Agreement, which security must be acceptable to the City Engineer and shall be in substantially the form attached hereto as Exhibit A. The Durable Performance Security shall be conditioned upon the faithful performance of this Agreement and any work performed thereunder and shall be released by City one-year following the termination of this Agreement. This one (1) year period is to guarantee that any wark is of good � quality and free from any defective or faulty materials or workmanship. City may draw on the Durable Performance Security in the event of a default by Company or in the event that Company fails to fulfill any of its obligations under this Agreement. City may also draw on the Durable Performance Security to cover any reimbursements owed to City by Company. If City draws on the Durable Performance Security, it will notify Company of the amount drawn, and Company will promptly restore the Durable Performance Security to the full amount of two hundred thousand dollars ($200,000). In the event that a bond issued pursuant to this Section of this Agreement is canceled by the surety, after proper notice and pursuant to the terms of said bond, Company shall, prior to the expiration of said bond, procure a replacement bond that complies with the terms of this Section of this Agreement. (b) Pa,yment Security. Company shall furnish and deliver a labor and materials security (the "Durable Payment Security") in the amount of two hundred thousand dollars ($200,000), concurrently with the execution of this Agreement,which security must be acceptable to the City Engineer and shall be in substantially the form attached hereto as Exhibit B. The Durable Payment Security shall secure payment to the contractor(s) and subcontractor(s) performing any work subject to this Agreement and to all persons furnishing labor, materials or equipment to them (each a potential "Claimant"). If City draws on the Durable Payment Security to pay any claimant, it will notify Company of the amount drawn, and Company will promptly restore the Durable Payment Security to the full amount of two hundred thousand dollars ($200,000). City shall retain the Durable Payment Security until both(i)one(1)year after the date this Agreement terminates and (ii) the applicable statute of limitations to file an action has expired. ATTY/AGR/2015.260/OPTIC ACCESS,LLC FIBER OPTIC FACILITIES REV:O1-07-16 JS&VR Page 5 of 20