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t M contract to such an extent that the contract shall be forfeited, the Surety shall have the right and opportunity to assume the remainder of the contract and at its option to perform or sublet the same. 3. In the event of any breach of the provisions of the contract, the Surety shall be subrogated to all the rights and properties of the Principal arising out of the contract. All deferred payments, and any and all moneys and properties, that are then, or that may thereafter become,'due to the Principal under or by virtue of the contract shall be credited upon any claim that the Obligee may make upon the Surety. 4. Legal proceedings for recovery hereunder may not be brought unless begun within twelve months from the time of the discovery of the act or omis- sion of the principal on account of which claim is made; but if the Surety shall assume the performance of the contract, the period within which legal proceedings for recovery hereunder may be brought shall be deemed extended twelve months beyond the date of failure of the Surety to perform the said contract. If any limitation set forth in this condition is prohibited by the statutes of the state in which this bond is issued, the said limitation shall be considered to be amended to agree with the minimum period of limitation permitted by such statutes. 5. The. Principal shall be made a party to any suit or action for recov- ery hereunder, and no judgment shall be rendered against the Surety in excess of the penalty of this instrument. 6. The Surety shall not be liable for any damages resulting from strikes or labor difficulties, or from mobs, riots, fire, the elements, or acts of God, or for the repair or reconstruction of any work or material damaged or destroyed by any such causes; nor for damages for injury to person; nor the non-perform- ance of any guarantees of the efficiency or wearing qualities of any work done or materials furnished or the maintenance thereof or repairs thereto; nor for the furnishing of any bond or obligation other than this instrument; nor for damages caused by delay in finishing such contract in excess of ten per cent of the penalty of this instrument. 7. No change shall be made in the plans and specifications forming part of the contract that shall increase the amount to be paid to the Principal more than ten per cent of the penalty of this instrument, unless the Surety's consent thereto shall be secured in writing. 8. The Obligee shall retain such proportion as the contract specifies lu FEB 6 j974 ODOK 19 wE 273