2011-212 IT - ProNet Systems Inc FY2012 Service Agreement - Cameras and Security System

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BUSINESS SERVICES BOND Bond No. 7900357870 In consideration of an agreed premium, Nationwide Mutual insurance Company Des Moines Iowa ,a corporation organized under the laws of the State of OH and duly authorized to transact business as surety therein (hereinafter called "Surety's hereby agrees to indemnify ProNe[ Svstcros. Inc. of Raleigh NC (hereinafter called "Obligee'7, against lossof money orather property, real or personal, belonging to any and aA subscribers (hereinafter called "Subscriber's to its services, or in which the Subscriber has a pecuniary interest, or for which the Subscriber is legally liable, which the Subscriber shall sustain as the result of any fraudulent or dishonest acts, as hereinafter defined, of an Employee or Employees of the Obligee acting alone or in collusion with others, and for which the Obligee is liable, to an amount not exceeding the aggregate Twenty Five 'thousand llotlars DOLLARS ($ 25.000.00 THE FOREGOING AGREEMENT IS SUBJECT TO THE FOLLOWING CONDITIONS AND LIMITATIONS: TERM OF BOND: SECTION 1. The term of this bond begins with the 21st day of Mw 2010 ,standard 6me at the address of the Obligee above given, and ends at 12:00 o'clock night, standard time on the effective date of the cancellation of this bond in its entirety. CANCELLATION OF PRIOR INSURANCE: By acceptance of the Poficy you give us notice canceling prior policy ar bond Nos. NIA the cancellation to be effective at the time this. Policy becomes effective. DISCOVERY PERIOD: SECTION 2. Loss is covered under this bond only (a) if sustained through any ad or ads committed by any Employee of Obligee while this bond is in force as to such Employee, and {b) ff discovered prior to the expiration or sooner cancellation of this bond in its entirety as provided in Section 11, or from its cancellation or termination in its entirety in any other manner, whichever shall first happen. DEFINITION OF EMPLOYEE: SECTION 3. The word Employee or Employees, as used in this bond, shall be deemed to mean, respectively, one or more of the natural persons (except directors or trustees of the Obligee, if a corporation, who are not also ofltcers or employees thereof in some other capaaty) while in regular service of the Obligee in the ordinary course of the Obligee's business during the term of this bond and whom the Obligee compensates by salary, or wages and has the right to govern and direct in the performance such service, and who are engaged in such service within any of the States of the United States of America or within the District of Columbia, Puerto Rico, the Virgin Islands, or elsewhere for a limited period but not to mean brokers, factors commission merchants, consignees, contractors, or other agents or representatives of the same general character. FRAUDULENT OR DISHONEST ACT: SECTION 4. A fraudulent or dishonest act of an Employee of the Obligee shall mean an ad which is punishable under the Criminal Code in the jurisdiction within which ad occurred, for which said Employee is tried and convicted by a court of proper jurisdiction. MERGER OR CONSOLIDATION: SECTION 5. If any natural persons shall be taken into the regular service of the Obligee through merger or consolidation with some other concern, the Obligee shall give the Surety written notice thereof and shall pay an additional premium on any incxease in the number of Employees covered under this bond as a result of such merger or consolidation computed pro rata from the date of such merger or consolidation to the end of the current premium period. NON-ACCUMULATION OF LIABILITY: SECTION 6. Regardless of the number of years this bond shall continue in force and the number of premiums which shall be payable or paid, the liability of the Surety under this band shall not be cumulative in amounts from year to year or from period to period.