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VETERANS MEMORIAL BUILDING/SENIOR CENTER — YMCA JOINT PROJECT — PHASE 1 REDWOOD CITY, CA DOCUMENT 00 6290 ESCROW AGREEMENT FOR SECURITY DEPOSIT IN LIEU OF RETENTION Public Contract Code Section 22300 THIS ESCROW AGREEMENT ("Escrow Agreement") is made and entered into this 6th day of July , 2021, by and between CITY OF REDWOOD CITY._, ("City"), whose address is 1017 Middlefield Road Redwood City. CA 94063, THOMPSON BUILDERS CORPORATION ("Contractor"), whose principal place of business is located at 5400 Fianna Ranch Road Novato, CA 94945 and Bank of Marin, a state or federally chartered bank in the State of California, whose place of business is located at 1450 Grant Avenue, Novato, CA 94945 ("Escrow Agent"). For the consideration hereinafter set forth, City, Contractor and Escrow Agent agree as follows: 1. Pursuant to Public Contract Code Section 22300, Contractor has the option to deposit securities with Escrow Agent as a substitute for retention earnings required to be withheld by City pursuant to Contract Number N/A entered into between City and Contractor for THE Veterans Memorial Building / Senior Center PROJECT located at 1333 Madison Ave, Redwood City, CA 94061 in the amount of $ 51,097,000.00 dated May 24 2021 (the "Contract"). Alternatively, on written request of Contractor, City shall make payments of the retention earnings directly to Escrow Agent. When Contractor deposits the securities as a substitute for Contract earnings, Escrow Agent shall notify City within ten Days of the deposit. The market value of the securities at the time of substitution shall be at least equal to the cash amount then required to be withheld as retention under terms of Contract between City and Contractor. Securities shall be held in name of city and shall designate Contractor as the beneficial owner. 2. City shall make progress payments to Contractor for those funds which otherwise would be withheld from progress payments pursuant to Contract provisions, provided that Escrow Agent holds securities in form and amount specified in Paragraph 1 of this Document 00 6290. 3. When City makes payment(s) of retention earned directly to Escrow Agent, Escrow Agent shall hold said payment(s) for the benefit of Contractor until the time that the escrow created under this Escrow Agreement is terminated. Contractor may direct the investment of the payments into securities. All terms and conditions of this Escrow Agreement and the rights and responsibilities of the parties shall be equally applicable and binding when City pays Escrow Agent directly. 4. Contractor shall be responsible for paying all fees for the expenses incurred by Escrow Agent in administering the Escrow Account, and all expenses of City. Such expenses and payment terms shall be determined by City, Contractor, and Escrow Agent. 5. Interest earned on securities or money market accounts held in escrow and all interest earned on that interest shall be for sole account of Contractor and shall be subject to withdrawal by Contractor at any time and from time to time without notice to City. 6. Contractor shall have the right to withdraw all or any part of the principal in the Escrow Account only by written notice to Escrow Agent accompanied by written authorization from City to Escrow Agent that City consents to withdrawal of amount sought to be withdrawn by Contractor. 7. City shall have the right to draw upon the securities in event of default by Contractor. Upon seven Days written notice to Escrow Agent from City of the default, Escrow Agent shall immediately convert the securities to cash and shall distribute the cash as instructed by City. 8. Upon receipt of written notification from City certifying that the Contract is final and complete, and that Contractor has complied with all requirements and procedures applicable to the Contract, Escrow Agent shall release to Contractor all securities and interest on deposit less escrow fees and charges of the Escrow Account. The escrow shall be closed immediately upon disbursement of all moneys and securities on deposit and payments of fees and charges. Bid Set: 2021-03-24 ESCROW AGREEMENT FOR SECURITY DEPOSITS 006290-1