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subcontractors, shall be responsible for promptly correcting acts or omissions by any contractor or subcontractor, and shall implement a quality control program to ensure that the work is properly performed. This section is not meant to alter tort liability of Company to third parties. 2.10 Administrative Fee. Company shall pay to City an annual administrative fee of one hundred dollars ($100). Such fee shall be due to City within 30 days of the anniversary of the date of this Agreement. This fee is in addition to all required fees, cash deposits, bonds or other security required by this Agreement, the Code and the Zoning Code. ARTICLE 3 LIMITATIONS AND RESTRICTIONS 3.1 Nothing in this Agreement shall be construed as granting or creating any franchise rights. 3.2 This Agreement is not a grant by City of any property interest but is made subject and subordinate to the prior and continuing right of City to use all the Public Rights -Of -Way, including but not limited to, public use as a street and for the purpose of laying, installing, maintaining, repairing, protecting, replacing and removing publicly -owned sanitary sewers, water mains, storm drains, gas mains, poles, overhead and underground electric and telephone wires, electroliers, cable television and other utility and municipal uses together with appurtenances thereof and with right of ingress and egress, along, over, across and in said Public Rights -Of -Way. 3.3 This Agreement shall not create a vested right of any nature in Company to use the Public Rights -Of -Way. This Agreement is made subject to all easements, restrictions, conditions, covenants, encumbrances and claims of title which may affect the Public Rights -Of -Way, and it is understood that Company, at its own cost and expense, shall obtain such permission as may be necessary consistent with any other existing rights. No reference herein to "Public Rights -Of -Way" shall be deemed to be a representation or guarantee by City that its interest or other rights to control the use of such property is sufficient to permit its use for such purposes. It is not a warranty of title or interest in any Public Rights -Of -Way. It does not confer rights other than as expressly provided in the grant hereof, and Company shall be deemed to gain only those rights to use as are properly in City and as City may have the undisputed right and power to give. 3.4 This Agreement only authorizes Company to use the portions of the Public Rights - Of -Way specifically described in one or more encroachment permits if and when issued by the City. It does not require the City to approve any particular encroachment permit applications, nor does it provide Company with any interest in any particular location within the Public Rights -Of - Way. This Agreement shall not be deemed to approve any particular design or installation technique. Certain specific physical design aspects of the Facilities and detailed approvals of the installation of the Facilities will occur through the issuance of specific permits and approvals by the City. 3.5 If Company proposes and is authorized by the California Public Utilities Commission or the Federal Communications Commission to provide additional and/or alternative services other than Telecommunication Services and intends to offer such services to customers within the corporate limits of City, Company shall notify City in writing, as soon as practicable, and comply with City's local ordinances, including any fee, franchise and/or permit requirements. Company acknowledges that any expansion or change in the character and nature of the services REV: 07-09-2020 PR ATTY/AGR.2020.122/Sonic Telecom, LLC (Page 4 of 19)