MCIMETRO ACESS TRANSPORTATION SERVICES / VERIZON

1"• charge(s) in dispute; (3)states with particularity the reason(s)that support the good faith judgment for disputing each line item charge; and(4)has tendered payment for all line item charges in full, including those line item charges paid under protest. ENCROACHER's payment of line item charges under protest shall not waive or affect its rights under applicable Laws to seek reimbursement or credit for such fees. CITY's acceptance of any payment less than the full amount provided on the invoice shall not be construed as an accord and satisfaction. 6.2 Any encroachment permit shall set forth the description of the Network Facilities to be installed and the Public Right-of-Way in which such Network Facilities are to be located. In addition to the terms and conditions in this Agreement, CITY may, consistent with applicable Laws, establish construction-related conditions and specifications as set forth in the Pleasanton Municipal Code, duly adopted policies by the City Engineer, the encroachment permit and/or related permits or approvals. Within ninety(90) days after any construction, installation,removal, relocation or modification,ENCROACHER shall provide CITY as-builts of the Network Facilities in the same format as the format provided to and approved by CITY in the applications for an encroachment permit and/or related permits or approvals and shall further notify Underground Service Alert(USA) of the location of the Facilities. 6.3 In addition to any other remedies available in this Agreement or in applicable Laws, the failure to comply with the terms and conditions of this Agreement may, at CITY's sole discretion consistent with applicable Laws, result in withholding issuance of any new encroachment permits and/or other enforcement actions pursuant to Pleasanton Municipal Code. SECTION 7 PERFORMANCE BOND 7.1 Prior to the issuance of an encroachment permit and undertaking any of the work, installation, improvements, construction, repair, relocation or maintenance authorized by permits issued for Facilities under this Agreement, ENCROACHER shall cause to be furnished a cash deposit or bond executed by a corporate surety or financial institution authorized to do business in the State of California in a sum,no less than 10%, but no more than 25%of the total construction cost, to be set and approved by the CITY as sufficient to guarantee performance of ENCROACHER's removal and restoration obligations under this Agreement. ENCROACHER shall submit an itemized cost estimate with each encroachment permit application that provides a true and accurate estimate of all ENCROACHER's construction-related costs for the proposed scope of work.The cash deposit or bond shall be conditioned so that ENCROACHER shall observe all the covenants, terms, and conditions and faithfully perform all of the obligations of this Agreement with respect to removal, and to erect or replace any defective work or materials discovered in the replacement of CITY's Public Rights-of-Way or property within a period of(a) three (3) years for any defective materials, or (b) five (5) years for any defective work, commencing from the date of completion of removal work under any designated permits, normal wear and tear excepted. ENCROACHER may meet the obligations of this subsection with one or more bonds acceptable to the CITY. In the event that a bond issued pursuant to this subsection is canceled by the surety,after proper notice and pursuant to the terms of said bond,ENCROACHER shall, prior to the expiration of said bond, procure a replacement bond which complies with the terms of this subsection. ENCROACHER's furnishing of a cash deposit or bond pursuant to this {00053614;%1{ -10-