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($200,000). City shall retain the Durable Payment Security until ninety (90) days after Company has notified City that it has completed initial construction of its Facilities in the City. 4.2 Recovery. So long as any securities described in Section 4.1 remain 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an Existing Security, the City shall notify Company in writing, by First Class Mail, postage prepaid, of the amount withdrawn and the date thereof. 4.2.2 Thirty days after the City's mailing of notice of the cash deposit or bond forfeiture or withdrawal authorized herein, Company shall deposit such further cash or bond, or other security, as the City may require, which is sufficient to bring the amount of each Existing Security back to its original amount. 4.2.3 The rights reserved to the City with respect to any Existing Security are in addition to all other rights of the City whether reserved by this Agreement or authorized by law, and no action, proceeding, or exercise of a right with respect to any cash deposit or bond shall constitute an election or waiver of any rights or other remedies the City may have. 4.3 Other Security Provisions. 4.3.1 If any Existing Security is a corporate surety bond and, in the opinion of the City, any surety or sureties thereon become insufficient, Company shall renew or replace any such surety with good and sufficient surety or sureties within ten (10) days after receiving from City written demand thereof. 4.3.2 Any Existing Security consisting of corporate surety bonds shall be kept on file with the City Engineer. If a corporate surety bond is replaced by another approved bond, the replacement shall be filed with the City Engineer and made a part of and incorporated into this Agreement. Upon filing and approval by the City Engineer of a replacement bond, the former Existing Security shall be released. 4.3.3 If there is an increase to the estimated cost of any work, City may require Company to increase the amount of any Additional Performance Security and/or Additional Payment Security so that the applicable securities cover the entire estimated cost of the work. In addition, if there is any increase to the estimated cost of any work, City may also require Company to obtain an Additional Performance Security and/or Additional Payment Security even if such additional security had not been originally required with respect to the work. REV: 07-09-2020 PR ATTY/AGR 2020 122/Sonic Telecom, LLC (Page 6 of 19)