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<br /> BOND TERMS AND CONDITIONS
<br />1. Contractor and Surety, jointly and severally, bind themselves, their heirs, executors.
<br /> administrators, successors and assigns to City and to Claimants, to pay for labor,
<br /> materials and equipment furnished for use in the performance of the Construction
<br /> Contract, which is incorporated herein by reference.
<br />2. With respect to City, this obligation shall be null and void if Contractor:
<br /> 2.1 Promptly makes payment, directly or indirectly, for all sums due Claimants; and
<br /> 2.2 Defends, indemnifies and holds hannless City from all claims, demands, liens or
<br /> suits by any person or entity who furnished labor, materials or equipment for use
<br /> in the performance of the Construction Contact, provided City has promptly
<br /> notified Contractor and Surety (at the address set forth on the signature page of
<br /> this Bond) of any claims, demands, liens or suits and tendered defense of such
<br /> claims, demands, liens or suits to Contractor and Surety, and provided there is
<br /> no City Default
<br />3. With respect to Claimants, this obligation shall be null and void if Contractor promptly
<br /> makes payment, directly or indirectly through its Subcontractors, for all sums due
<br /> Claimants. If Contractor or its Subcontractors, however, fail to pay any of the persons
<br /> named in Section 3181 of the Califomia Civil Code, or amounts due under the
<br /> Unemployment Insurance Code with resped to Work or labor performed under the
<br /> Contract, or for any amounts required to be deducted, withheld, and paid over to the
<br /> Employment Development Department from the wages of employees of Contractor or
<br /> Subcontractors pursuant to Section 13020 of the Unemployment Insurance Code, with
<br /> respect to such Work. and labor, then Surety Shall pay for the same. and also, in case
<br /> suit is brought upon this Bond, a reasonable attorney's fee, to be fixed by the court.
<br />4. Consistent with the California Mechanic's Lien Law, Civil Code ~3082, et seq., Surety
<br /> shall have no obligation to Claimants under this Bond unless the Claimant has satisfied
<br /> all applicable notice requirements.
<br />5. Surety's total obligation shall not exceed the amount of this Bond, and the amount of this
<br /> Bond shall be credited for any payments made in good faith by Surety under this Bond.
<br />e. Amounts due Contractor under the Construction Contract shall be applied first to satisfy
<br /> claims, if any. under any Construction Performance Bond and second, to satisfy
<br /> obligations of Contractor and Surety under this Bond.
<br />7. City shall not be liable for payment of any costs, expenses, or attorney's fees of any
<br /> Claimant under this Bond, and shall have under this Bond no obligations to make
<br /> payments to, give notices on behalf of, or otherwise have obligations to Claimants under
<br /> this Bond.
<br />S. Surety hereby waives notice of any change, including changes of time, to the
<br /> Construction Contract or to related subcontracts, purchase orders and other obligations.
<br /> Surety further hereby stipulates and agrees that no change, extension of time, alteration
<br /> or addition to the tenns of the Construction Contract, or to the Work to be performed
<br /> thereunder, or materials or equipment to be furnished thereunder or the Specifications
<br />1880.00 1 \213~23'.2 00620-2
<br />LABOR AND MATERIALS PAYMENT BOND
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