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SETTLEMENT AGREEMENT Principal: H&D Construction Co., Inc. Surety: The Guarantee Company of North America USA Obligee: Indian River Board of County Commissioners Project: Egret Marsh Stormwater Management Facility Bond No: 80052711 � This Settlement Agreement (the "Agreement') is made this % % A fday of December, 2014, between the Indian River Board of County Commissioners (the "County"), and The Guarantee Company of North America USA ("GCNA").") (the County and GCNA shall collectively be referred to as the "Parties"). WHEREAS, on or about December 9, 2008, the County and H&D entered into a written agreement (the "Contract") for the construction of the project commonly known as the "Egret Marsh Stormwater Management Facility" (the "Project"); and WHEREAS, in connection with the Contract, GCNA, as surety, issued a Performance Bond bearing bond number 80052711 (the "Bond') on behalf of H&D, as principal, and in favor of the County, as obligee; and WHEREAS, disputes have arisen between H&D and the County during the course of construction, resulting in the County's issuance of communications to H&D, purporting to declare a default against H&D under the Contract, indicating the County's intent to complete the work required under the Contract, and making claim against GCNA under the Bond, and WHEREAS, the County did, in fact, proceed to complete the work required of H&D under the Contract, and WHEREAS, GCNA has received claims against the Bond issued on the Project by various subcontractors, materialmen and suppliers of H&D alleging non-payment for goods and/or services provided on the Project, such claims exceeding the available contract balances due and owing from the County to H&D; and WHEREAS, as surety, GCNA's rights of equitable subrogation and contractual assignment entitle GCNA to recover and utilize the available contract balances due and owing on the Contract to mitigate its damages under the Bond: and WHEREAS, the County has asserted claims against the available contract balances associated with the costs incurred by the County to complete the work required of H&D under the Contract; and WHEREAS, the Parties wish to resolve their competing claims to the available contract balances without need for litigation.