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3.6 This Agreement shall be for the non-exclusive use of the Public Rights -Of -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 -Of -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 work 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. 4.2 Recovery. So long as any security described in Section 4.1 remains in place (each an "Existing Security"), they may be utilized by the City as provided herein for reimbursement of the City by reason of Company's failure to pay the City for actual costs and expenses incurred by the City with respect to the Facilities, including any expenses for removal under this Agreement. 4.2.1 In the event Company has been declared by the City to be in default of a material provision of this Agreement and if Company fails, within 30 days of mailing of the City's default notice, to perform any of the conditions of this Agreement, or fails to begin to perform any such condition that may take more than 30 days to complete, City may thereafter obtain from the applicable Existing Security, after proper claim is made to the surety, an amount sufficient to compensate the City for its damages and/or expenses. Upon such withdrawal from an Existing Security, the City shall notify Company in writing, by First Class Mail, postage prepaid, of the amount withdrawn and the date thereof. ATTY/AGR/2017.035/ZAYO GROUP, LLC—FIBER OPTIC FACILITIES REV: 02-14-17 JS Page 5 of 16