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Page 13 of 35 30.Surety Bond: a) Prior to the issuance of any permit hereunder, Lessee shall provide Lessor with a performance bond naming Lessor as oblige in the amount of $600,000 for the work to be performed by or on behalf of Lessee within and affecting the property described herein to guarantee and assure the faithful performance of Lessee’s obligations under this Lease. Lessor shall have the right to draw against the performance bond in the event of a default by Lessee or in the event that Lessee fails to meet and fully perform any of Lessee’s obligations. The form of the performance bond shall be approved by Lessor. The performance bond shall remain in full force for sixty (60) days after the work to be performed is completed, inspected, accepted and released by the Lessor, or earlier if Lessor otherwise releases Lessee. b)Lessee shall provide Lessor with a removal bond in the amount of $150,000 to remain in full force and effect for the Term of the Lease. Lessor shall have the right to draw against the removal bond in the event the Project must be removed from the Lease Premises as described in this Lease. Lessee shall provide Lessor’s staff with a third-party cost estimate for removal of the fiber optic cables and HDPE conduit from the Lease Premises within two (2) years of the Effective Date. Upon Lessor’s staff’s approval of the estimate, the Removal Bond amount listed in Section 1 is modified to the higher of the two amounts, and Lessee must provide Lessor with a surety bond for any outstanding amount within 60 days of Lessor’s staff’s approval of that cost estimate. Lessor may further modify the surety bond as described in Section 3- General Provisions, Subsection 10. The removal bond required by this Lease may be reviewed and updated for sufficiency by Lessor on each fifth anniversary of this Lease (i.e., the fifth, tenth, fifteenth, etc.) and the amount of the bond may be increased as needed to cover the estimated cost for potential removal of the improvements on the Lease Premises. Lessor’s lack of review at any fifth anniversary shall not waive or prejudice Lessor’s ability to review and update the bond at any subsequent fifth anniversary. c)All surety bonds must be issued by a company or companies admitted doing business in the State of California. All bonds are to be placed with companies with a current A.M. Best’s rating of no less than A+. Any exception to these requirements must be approved by the City Risk Manager or designee. 31.Lease Management Agreement – Lessee shall reimburse Lessor in full for all reasonable costs and expenses incurred by Lessor related to Lessee’s occupation of the Lease Premises that Lessee may incur which are not already covered by the Consideration. In the event Lessor has cost or expenses to submit to Lessee under this section, the Parties shall meet and confer with respect to such costs and come to an DocuSign Envelope ID: 8D8CF2E2-DF6D-4A11-B610-2B1544DD7C30