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PERFORMANCE AND PAYMENT PHASED CONTRACT BOND RIDER THIS RIDER is to be attached to and form a part of performance and payment bonds no.BB8904 (the "Bonds ") issued by Contractors Bonding and Insurance Company (hereinafter called "Surety ") on the 16 day of June , 2011 WHEREAS, The City of Redwood City (hereinafter called the "Obligee ") requested bids from bidders to perform the 2011 -2012 Utility Trench Repair Project and WHEREAS, the terms of the agreement to be entered into by the successful bidder (hereinafter referred to as the "Contract ") provides that the Contract may be extended into successive Phases; and WHEREAS, Surety requires an underwriting review before agreeing to have the Bonds cover any Phase beyond the initial 2011 -2012 term of the Contract, and Surety may in its sole discretion decline to agree to extend the Bonds to cover any subsequent Phases. NOW, THEREFORE, notwithstanding any language in the Bonds or Contract to the contrary, the Bonds are hereby conditioned and modified as follows: a. The Bonds shall cover only the initial 2011 -2012 term of the Contract, and Surety shall not be liable for any defaults or events arising outside of, or before or after the initial 2011 -2012 term of the Contract. At the sole option of the Surety, the Bonds may be extended to cover subsequent Phases, but only by continuation or renewal certificate and/or rider executed by Surety and setting forth the designation of the new Phase to be covered. Failure of Surety to renew or extend the Bonds to cover subsequent Phases, whether or not this failure may constitute a breach of the Contract, shall not be considered a breach of the Bonds or any condition or obligation therein. b. If the Bonds are renewed, continued, reinstated, reissued, or otherwise extended to cover more than the initial 2011 -2012 term of the Contract, the Bonds shall be considered one continuous bond and in no event shall Surety's aggregate liability for all the Phases covered by the Bonds exceed the penal sum amount. In no event shall the penal sum, or any portion thereof, for two or more Phases be added together to arrive at the Surety's liability, but instead the Surety's total and aggregate liability for all Phases covered by the Bonds is limited to a single penal sum. Any payment made by Surety under the Bonds shall reduce the penal sum pro - tanto. c. In the event any terms or conditions contained in this rider are unenforceable and/or are unacceptable to the Obligee, the Bonds shall be null and void and of no force and effect. Signed, sealed and dated this 16 day of June ,2011. BAY ARE PAVING C ., C. n By: rje/7 geS Its: < <J�e/ er ;L✓' CONTRACT R : • NDING AND INSURANCE COMPANY By: Its: Attorney -in -Fact Greg c artney o: \legal \bondfnu\rider -5.doc Rider- Page 1 of 2