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REV: 02-23-24 SK <br />Durable Payment Security to the full amount of two hundred thousand dollars ($200,000). The City <br />shall retain the Durable Payment Security until both (i) one (1) year after the date this Agreement <br />terminates and (ii) the statute of limitations to file an action under Civil Code section 8410 et seq. <br />has expired. <br />4.2 Recovery. So long as any security described in Section 4.1 and 4.2 remain in place <br />(each an “Existing Security”), they may be utilized by the City as provided herein for reimbursement <br />of the City by reason of Company’s failure to pay the City for actual costs and expenses incurred by <br />the City with respect to the Facilities, including any expenses for removal under this Agreement. <br />4.2.1 In the event Company has been declared by the City to be in default of a <br />material provision of this Agreement and if Company fails, within 30 days of mailing of the City’s <br />default notice, to perform any of the conditions of this Agreement, or fails to begin to perform any <br />such condition that may take more than 30 days to complete, the City may thereafter obtain from the <br />applicable Existing Security, after proper claim is made to the surety, an amount sufficient to <br />compensate the City for its damages and/or expenses. Upon such withdrawal from an Existing <br />Security, the City shall notify Company in writing, by First Class Mail, postage prepaid, of the <br />amount withdrawn and the date thereof. <br />4.2.2 Thirty days after the City’s mailing of notice of the cash deposit or bond <br />forfeiture or withdrawal authorized herein, Company shall deposit such further cash or bond, or other <br />security, as the City may require, which is sufficient to bring the amount of each Existing Security <br />back to its original amount. <br />4.2.3 The rights reserved to the City with respect to any Existing Security are in <br />addition to all other rights of the City whether reserved by this Agreement or authorized by law, and <br />no action, proceeding, or exercise of a right with respect to any cash deposit or bond shall constitute <br />an election or waiver of any rights or other remedies the City may have. <br />4.3 Other Security Provisions. <br />4.3.1 If any Existing Security is a corporate surety bond and, in the opinion of the <br />City, any surety or sureties thereon become insufficient, Company shall renew or replace any such <br />surety with good and sufficient surety or sureties within ten (10) days after receiving from the City <br />written demand thereof. <br />4.3.2 Any Existing Security consisting of corporate surety bonds shall be kept on <br />file with the City Engineer. If a corporate surety bond is replaced by another approved bond, the <br />replacement shall be filed with the City Engineer and made a part of and incorporated into this <br />Agreement. Upon filing and approval by the City Engineer of a replacement bond, the former <br />Existing Security shall be released. <br />4.3.3 If there is an increase to the estimated cost of any work, the City may require <br />Company to increase the amount of any Additional Performance Security and/or Additional Payment <br />Security so that the applicable securities cover the entire estimated cost of the work. In addition, if <br />there is any increase to the estimated cost of any work, the City may also require Company to obtain <br />an Additional Performance Security and/or Additional Payment Security even if such additional <br />security had not been originally required with respect to the work. <br />ATTY/AGR.2024.018/Astound Broadband, LLC (Fiber Agreement) (Page 6 of 20) <br />6.E. - Page 9 of 23 <br />178