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' . ~.:. <br />PAYMENT AND TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICP <br />PERFORMANCE Hartford, Connecticut 06183 <br />BOND <br />Bond No.: 1 <br />KNOW ALL PERSONS BY THESE PRESENTS, That we, Elms Landscape Services, Inc., as <br />principal, (hereinaiter called the "PrincipaP'), and Travelers Casualty and Surety Company of America. <br />a Connecticut corporation, as surety, (hereinafter called the "Surety°), are held and firmly bound unto <br />City of Eugene, as Obligee, in the sum of Thirty eight thousand five hundred Dollars ($38,500) for the <br />payment whereof said Principal and Surety bind themselves, jointly and severally, as provided herein. <br />WHEREAS, the Principal has entered into a Contract with Obligee dated , to perform <br />construction work for Delta Ponds Riparian Bench Soil Amendments and Seeding ("ContracY'). <br />NOW, THEREFORE, the condition of this obligation is such that if Principal shall promptly and <br />faithfuliy perform the Conshuction Work to be performed under the Contract, and shall promptly <br />make payment to Claimants, as hereinafter defined, for all labor and material actually used, <br />consumed or incorporated in the performance of the Construction Work under the Contract, then this <br />obiigation shali be null and void; otherwise to remain in full force and effect. <br />Surety's obligations hereunder to Obligee shall not arise unless Principal is in defauit under the <br />Contract for faiiing to perform the Construction Work, and has been dedared by Obligee to be in <br />default under the Contract for failing to perform the Construction Work; and Obligee has performed <br />its obligations under the Contract. In such event, Surety shall have a reasonabie period of time to: <br />1. Upon entering into an acceptable written takeover agreement with Obligee, undertake <br />to perform and complete the Construction Work to be done under the Contract; or <br />2. Obtain bids or negotiated proposals from qualified contractors for a contract for <br />completion of the Construction Work to be done under the Contract, arrange for a contract to be <br />prepared for execution by Obligee and contractor, to be secured with performance and payment <br />bonds executed by a quallfled surety; or <br />3. Waive its right to perform or complete the Construction Work pursuant to paragraphs 1 <br />and 2 above, and with reasonable promptness under the circumstances (a) After investigation, <br />determine the amount for which it may be liable to the Obligee and, as soon as practicable after the <br />amount is determined, tender payment therefor to the Obligee; or (b) Deny liability in whole or in part <br />and notify the Obligee citing reasons therefor. <br />4. The Contract balance, as defined below, shall be credited against the <br />reasonable construction cost of completing the Construction Work to be performed under the <br />Contract. 4S completed by Obligee pursuant to paragraphs 2 or 3 above, and the reasonable <br />construction cost of completing the Construction Work exceeds the Contract balance, Surety shall <br />pay to Obligee such excess, but in no event shall the aggregate liability of Surety exceed the amount <br />of this bond. if Surety completes the work pursuant to paragraph 1 above, that portion of the <br />Contract balance as may be required to complete the Construction Work to be done under the <br />Contract and to reimburse Surety for its outlays shall be paid to Surety at the times and in the manner <br />as said sums would have been payable to Principal had there been no defauit under the Contract. To <br />the extent that Surety's outlays exceed the Contract balance paid to Surety by Obligee, Surety shall <br />be entitled to a dollar for dollar reduction of its liability under this bond, and Surety's aggregate liability <br />shal4 not exceed the penal sum of this bond. The term "Contract balance" as used herein shail mean <br />the total amount payable by Obligee under the Contract and any amendments thereto, less the <br />amounts properly paid by Obligee to Principal under the Contract. The term "Construction Work" as <br />used herein shall mean the providing of all labor and/or material necessary to compiete Principal's <br />scope of work under the Contract. Notwithstanding any language in the Contract to the contrary, the <br />Payment and Performance Bond - Page 1 of 3 <br />