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Contractor and Surety, jointly and severally, bind themselves, their heirs, executors, administrators, <br /> successors, and assigns to Owner for the performance of the Contract, which is incorporated herein by <br /> reference. <br /> 1. If Contractor performs the Contract, Surety and Contractor have no obligation under this Bond, except to <br /> participate in conferences as provided in Paragraph 2.1. <br /> 2. If there is no Owner Default, Surety's obligation under this Bond shall arise after: <br /> 2.1 Owner has notified Contractor and Surety, at the addresses described in Paragraph 9 below, that <br /> Owner is considering declaring a Contractor Default and has requested and attempted to arrange a <br /> conference with Contractor and Surety to be held not later than 15 days after receipt of such notice <br /> to discuss methods of performing the Contract. If Owner, Contractor, and Surety agree, Contractor <br /> shall be allowed a reasonable time to perform the Contract, but such an agreement shall not waive <br /> Owner's right, if any, subsequently to declare a Contractor Default; and <br /> 2.2 Owner has declared a Contractor Default and formally terminated Contractor's right to complete <br /> the Contract. Such Contractor Default shall not be declared earlier than 20 days after Contractor <br /> and Surety have received notice as provided in Paragraph 2.1; and <br /> 2.3 Owner has agreed to pay the Balance of the Contract Price to: <br /> 1. Surety in accordance with the terms of the Contract; or <br /> 2. Another contractor selected pursuant to Paragraph 3.3 to perform the Contract. <br /> 3. When Owner has satisfied the conditions of Paragraph 2, Surety shall promptly, and at Surety's expense, <br /> take one of the following actions: <br /> 3.1 Arrange for Contractor, with consent of Owner,to perform and complete the Contract; or <br /> 3.2 Undertake to perform and complete the Contract itself, through its agents or through independent <br /> contractors; or <br /> 3.3 Obtain bids or negotiated proposals from qualified contractors acceptable to Owner for a contract <br /> for performance and completion of the Contract, arrange for a contract to be prepared for execution <br /> by Owner and contractor selected with Owner's concurrence, to be secured with performance and <br /> payment bonds executed by a qualified surety equivalent to the bonds issued on the Contract, and <br /> pay to Owner the amount of damages as described in Paragraph 5 in excess of the Balance of the <br /> Contract Price incurred by Owner resulting from Contractor Default; or <br /> 3.4 Waive its right to perform and complete, arrange for completion, or obtain a new contractor, and <br /> with reasonable promptness under the circumstances: <br /> 1. After investigation, determine the amount for which it may be liable to Owner and, as soon as <br /> practicable after the amount is determined,tender payment therefor to Owner; or <br /> 2. Deny liability in whole or in part and notify Owner citing reasons therefor. <br /> 4. If Surety does not proceed as provided in Paragraph 3 with reasonable promptness, Surety shall be <br /> deemed to be in default on this Bond 15 days after receipt of an additional written notice from Owner to <br /> Surety demanding that Surety perform its obligations under this Bond, and Owner shall be entitled to enforce <br /> any remedy available to Owner. If Surety proceeds as provided in Paragraph 3.4, and Owner refuses the <br /> payment tendered or Surety has denied liability, in whole or in part, without further notice Owner shall be <br /> entitled to enforce any remedy available to Owner. <br /> 5. After Owner has terminated Contractor's right to complete the Contract, and if Surety elects to act under <br /> Paragraph 3.1, 3.2, or 3.3 above, then the responsibilities of Surety to Owner shall not be greater than those <br /> of Contractor under the Contract, and the responsibilities of Owner to Surety shall not be greater than those <br /> of Owner under the Contract. To the limit of the amount of this Bond, but subject to commitment by Owner <br /> of the Balance of the Contract Price to mitigation of costs and damages on the Contract, Surety is obligated <br /> without duplication for: <br /> EJCDC C-610 Performance Bond <br /> Prepared by the Engineers Joint Contract Documents Committee. <br /> Page 2 of 3 <br />