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<br />S 1. The Cxmiraetdr and :he Sureev, rolrllty and severally,
<br />bind lhemielvcs,
<br />tneir nems. executors. a.dmmistralors, su ccssars aii.i .ssaigns W the aawncr
<br />for she pcnormancc Or the Construction Contract. ;which is ncarporated
<br />hereto by reference..
<br />p 2. It the Contractor pcifolms the Construction Contract, the Surety and
<br />the Conrractor %hall have no obligation under this Bond, cxccpl 10 par-
<br />licipate in conferences as provided in Subparagraph 3.1.
<br />). If there is no Owner Default, the Surcry't obligation under this Bond
<br />Mall arise after.
<br />3.1. The Owner has notihcd the Contncror and the Surety at its address
<br />described to Paragraph 10 below, thal the Owner is eonsidcring
<br />declaring a Contractor Default -and has requested and attempted
<br />io arrange a conference with the Contractor and the Surety to be
<br />held not later than fifteen days after receipt of Such notice to
<br />discuss methods of performing the Construction Contract, 1f the
<br />Owner, the Conlnttar and the Surely agree, the Contractor shall
<br />be allowed a realoruble time to perform the Construction Con-
<br />tract, but Such in Agreement shits not waive 11112 Owner's right, if
<br />any, subsequently to dtclare a Contractor Default; and
<br />3.2. The Owner has declared a Contractor Default and formalty ter.
<br />minated the Contractor's tight to complete the contracl. Such
<br />Contractor Default shall not bt declared earlier than twenty days
<br />Aker the Contractor and the Surety have received notice as pro.
<br />vided in Subparagraph 3.1; and
<br />3.3. The Owner hits agreed to pay the Balance of the Contract pace
<br />to the Surety in accordance with the terms of the Construction
<br />Contract or to a contractor selected to perform the Construction
<br />Contract in Accordance with the terms of the contract with the
<br />Owner.
<br />4. When the Owner has satisfied the conditions of Paragraph 3. the Surely
<br />Shall promptly and It the Surety's expense iak- enc of she
<br />actions: following
<br />4.1. Arrange for ilrc Contractor, with coastal of the Owner. to crform
<br />and complete the Construction Contract: or
<br />4.2. Undertake to perform and complete the Construction Contract
<br />itself. through its agents or through independent eonlraciors; or
<br />a.3. Obtain bids or negotiated proposals from qualified contractors
<br />Acceptable to the Owner for a contract for periormance and com.
<br />pacticn of the Con%irucdon Contract, Arrange for a contract to be
<br />prepared for e.cccution by the Owner and the contractor selected
<br />with the Owner's concurrence, to be secured with performance
<br />and payment bonds executed by a qualified surety equivalent to
<br />the bonds issued On the Consttucuan Contract, Ind pay to the
<br />Owner the amount of damages as described in Paragnph 6 in
<br />execs' Of the Balance of the Contract Price incurred byihe Owner
<br />resulting from the Contractor's dctault: or
<br />4,4, Waive its right to perform and complete, arrange for completion,
<br />or obtain it new caniractorand with reasonable promptness undcr
<br />the circumstances:
<br />I. After investigation, determine the amount for which it may be
<br />liable faille Ownerand. as soon as practicable after the amount
<br />is determined, tender payment Ihertfor to the Owner; or
<br />:. Deny liability in whofc or in part and 1a;1 Lhc Owner citing
<br />rcasonstherefor.
<br />3, if the Surety does not proceed as provided is Paragraph 4 will reason-
<br />able promptness, the Surcty shall be dermal to � t �cf.
<br />Kr .er, .ro %tort Hood
<br />.r, noir receipt at an additional written ao[ire from the Owner
<br />to the Surely demanding that the Surety perform its obligations under this
<br />Bond, and the Owner shall be entitled to enforce Any remedy available to
<br />the Owner. If the Surely proceeds as provided in Subparagraph 4.4, and
<br />the Owner refuses tht payment tendered or the -Surety has denied liability,
<br />in whoic or in pan, without further notice the Owner shall be entitled to
<br />enforce any remedy available to the Owner.
<br />6. atter the Owner has lerflnnated the Cdntra"Or s rifh,t to eomple:: the
<br />r:%ruction Coneraet, and if the Surcty eta;ts Io
<br />1, ac: sneer Su` _;sy.yc
<br />i. 4,2. or 11,3 shave, thin the reiponslbdtnes of the Surch, to the Owner
<br />shall not be greater than those of the C.sniractor under 111h, Contfry
<br />Contract, and the responsibilities of the Owncr to the Surcttanety alio{I not be
<br />WSW than those of the Owner under the construction Canaract Ta the
<br />limit Of the amount of this Bond„ but subject to commit t by lite O
<br />of the Balance of the Contract Price to mitigation of costs er
<br />aner
<br />d da wncan
<br />on th; Construction Contract, the Surety is obligated with dopa attar
<br />far.
<br />6.1. The responsibilities of the Contractor for correction of dcfeetive
<br />wank and cornplerion of the Construction Contract;
<br />6.'-. Additional legal, design professional and delay cost, resulltnr
<br />from the Consnctor's default, and (clotting from the acticns or
<br />failurc to act of the Surety under ParasraPh -t; and
<br />6.3. Liquidated damages. or if no liquidated damages are specified in
<br />the Constriction Contract, actual damages Caused by del,syec
<br />performance or aon•performance of the Contactor. 1
<br />7. The Surety shall not be liable to the Owner or others for obUjalions of
<br />the Contractor that arc unrelated to the Construction Contract. and the
<br />Balance or the Contract. Price shall not be reduced or set eff On Account
<br />Of any such unrelated obligations. No right of action shall accrue on this
<br />Bond to any person or entity other than the Owner or its heirs, e'tteulors,
<br />adminiteralors. or successors.
<br />S. The Surety hereby waives notice of any change, including changes at
<br />time, to the COnstnlction Contract or to related ,ubeonlmcts, purchase
<br />orders and other obligations.
<br />n. Any proceeding, legal or equitable, under this Band may be inslitutto
<br />in say coon of competent jurisdiction in the location in which the wort
<br />or part orthe work is located and shall be instituted within Iwo years after
<br />Contractor Default or within two years after the Contractor ceased work
<br />ing or within two ytan eftcr ll:e Surety refuses or fail% to perforn its
<br />obligations under thu Bond. whichever occurs first. If the provisions of
<br />WS Paragraph. Are void or prohibited by Law, the minimum period 01
<br />lianitation available to suretits as a defense in the jurisdiction of the tui+
<br />shall be applicable.
<br />Hl. Notice to the Surely, the Owner or the Contractor shall be mailed or
<br />delivered to the address shown ort the signature page.
<br />I I. When this Bond has been furnished to comply with I aratulory a:
<br />Other legal requiremcnt in the location where the construction was to br
<br />Pict -formed. any provision in this Bond conflicting with said statutory o
<br />legal requiremcnt shall be deemed deleted here(rom and provisians eon
<br />forming to such statutory or Other legal requirement shall be decmec
<br />incorporated herein, The intent is that this Bond shall be construed as I
<br />ataautory band and oat as a common Is bond.
<br />12. Definitions.
<br />ILL Balance of the Contract Price: The total amount payable by ehr
<br />Owner to Llsc Contraclor under the Construction Contract alle.
<br />AU proper adjustmeal.s have been made, including allowance tc
<br />the Conuaetor Of Any amounts received or to be received la)the Owner in settlement of Insurance or other claims for dam
<br />agcs to which the Contractor is entitled, reduced by all v:lic
<br />and proper payments made to or on behalf of like Contracio
<br />under the Constraction Coates_..
<br />12.22. Construction Contract; The agreement between the Owner am
<br />the remrr -For r.+c .::.Fc,: uu tire , si nature page. a p a including at
<br />Contract Documents and changes thereto,
<br />12.3, Contractor Dcfault: Failure of the Contractor, which has neithe
<br />been remedied nor waived, to perform or otherwise to compll
<br />with the terms of the Construction Contract.
<br />12.4. Owner Default: Failure of the Owner, whieh has neither beer
<br />remedied nor waived, to pay the Contractor as required by ehr
<br />Construction Contract nr to perform and complete or compl}
<br />with the other terms thereof.
<br />(FOR INFORMATION ONLY --Mame, Address and Telephone)
<br />AGENT or BROILER: OWNER'S REPRESENTATIVE (Architect, Engincer or other party):
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