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4.1 Arrange for the Contractor,.A lsent of the Owner, to nerfonn and complete the Constructi~.....act; or 4.2 Undertake to perfonn and complete the Construction Contract itself, through its agents or through independent contractors; or 4.3 Obtain bids or negotiated proposals from qualified contractors acceptable to the Owner for a contract for perfonnance WId completion of the Construction Contract, arrange for a contract to be prepared for execution by the Owner and the contractor selected with the Owner's concurrence, to be secured with perfonnance WId payment bonds executed by a qualified surety equivalent to the bonds Issued on the Construction Contract, and pay to the Owner the amount of damages as described in Paragraph 6 in excess of the Balance of the Contract Price incurred by the Owner re~lting from the Contractor's default; or 4.4 Waive its right to perfonn and complete, arrange for completion, or obtain a new contractor and with reasonable prompbtess under the circumstances: . 1 After investigation, detennine the amount for which it may be liable to the Owner and, as soon as practicable after the amount is detennined, tender payment therefor to the Owner; or .2 Deny liability in whole or in part and notifY the Owner citing reasons therefor. 5 If the Surety does not proceed as provided in Paragraph 4 with reasonable promptness, the Surety shall be deemed to be in default on this Bond f1fteen days after receipt of an additional written notice from the Owner to the Surety demanding that the Surety perfonn its obligations under this Bond. and the Owner shall be entitled to enforce WlY remedy available to the Owner. If the Surety proceeds as provided in Subparagraph 4.4, and the Owner refuses the payment tendered or the Surety has denied liability, in whole or in part, without further notice the Owner shall be entitled to enforce any remedy available to the Owner. 6 After the Owner has tenninated the Contractor's right to complete the Construction Contract, and if the SurelY. elects to act WIder Subparagraph 4.1,4.2, or 4.3 above, then the responsibilities of the Surety to the Owner shall not be greater than those of the Contractor under the Construction Contract, and the responsibilities of the Owner to the Surety shall not be - ~'lter than those of the Owner under the Construction Contract. To the t of the amount of this Bond, but subject to commitnlent by the Owner 'n dte Balance of the Contract Price to mitigation of costs and damages on the Construction Contract, the Surety is obligated without duplication for: 6.1 The responsibilities of the Contractor for correction of defective work and completion of the Construction Contract; 6.2 Additional legal, design professional and delay costs resulting from the Contractor's Default, and resulting from the actions or failure to act of the Surety under Paragraph 4; and 6.3 Liquidated damages, or ifno liquidated damages are specified in the C<>nstruction Contract, actual damages caused by delayed perforn,ance or non-perfonnance of the Contractor. MODIFICATIONS TO TInS BOND ARE AS FOLLOWS: 7 The surea .ot be liable to the Owner or others for obligations of the Contractor tho.. dre unrelated to the Construction Contract, WId the Balance of the Contract Price shall not be reduced or set ofT on account of any such unrelated obligations. No right of action shall accrue on this Bond to any person or entity other than the Owner or its heirs, executors. administrators or successors. 8 The Surety hereby waives notice of any change, including changes of time, to the Construction Contract or to related subcontracts, purchase orders and other obligations. 9 Any proceeding, legal or equitable, under this Bond may be instituted in any court of competent jurisdiction in the location in which the work or part of the work is located and shall be instituted within two years after Contractor Default or within two years after the Contractor ceased working or within two years after the Surety refuses or fails to perfonn its obligations under this Bond, whichever occurs first If the provisions of this Paragraph are void or prohibited by law, the minimum period of limitation available to sureties as a defense m the jurisdiction of 10 Notice to the Surety, the Owner or the Contractor shall be mailed or delivered to the address shown on the signature page. 11 When this Bond has been furnished to comply with a statutory or other legal requirement in the location where the construction was to be perfonned, any provision in this Bond conflicting with said statutory or legal requirement deleted herefrom and provisions confonning to such statutory or other legal requirement shall be deemed incorporated herein. The intent is that this Bond shall be construed as a statutory bond WId not as a common law bond. 12 DEFINITIONS 12.1 Balance of the Contract Price: The total amount payable by the Owner to the Contractor under the Construction Contract after all proper adjustments have been made, including allowance to the Contractor of any amounts received or to be received by the Owner in settlement of insurance or other claims for damages to which the Contractor is entitled, reduced by all valid and proper payments made to or on behalf of the Contractor under the Construction 12.2 Construction Contract: The agreement between the Owner and the Contractor identified on the signature page, including all Contract Docwnents and changes thereto. 12.3 Contmctor Default: Failure of the Contractor. which has neither been remedied nor waived, to perfonn or otherwise to comply with the tenns of the Construction Contract. 12.4 Owner Default: Failure of the Owner. which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perfonn and complete or comply with the other tenns thereof. (Space is provided below for additional signatures of added parties, other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL SURETY Company: (Corporate Seal) Company: 'lature: . ...me and Title: Address: S.1852/GEEF 7/96 Page 2 of 2 (Corporate Seal) Signature: Name and Title: Address: