ENVIRONMENTAL CONSTRUCTION, INC. (WELL NO. 29 IMPROVEMENTS)

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CL-ERX OF THE COUNC11- rED 28'23 PM12:00 P&C IT I C'PRE M.) E k BAN K Escrow Agreement for Security Deposits in Lieu of Retention .. .. ..... . . .............. .. ... ....... Project Name; Wall No,29 Improvements Projects This Escrow Agreement Is made this 26 clayoffObluM 2023 and entered Into by and between City of Santa Ana whose address is 20 Civic Center Plan heralrefter referred to as "Ownee and Environmental Construction, Inc. , whose address Is 2`16E0 Oxnard Street, Suite 1060, Woodland Hills, CA 91367 hereinafter referred to as �Contractor"; and Pacific Premier Bank, whose address IsI7901 Von Korman Avenue, Suite 1200, 1 Nine, CA 97614 hereinafter referred to as "Escrow Agent". Per the consideration hereinafter set forth, the Owner, Contractor and Escrow Agent agree as follows: 1, Pursuant to Section 22300 of the Public Contract code of the state of California, Contractor has the option to deposit securities with Escrow Agent as a substitute for retention earnings required to be withheld by Owner pursuant to the Construction Contract entered Into between the Owner and Contractor for Well#29 Improvements Project in the amount of $ 0,706,200,00 dated 09120/2M2 (hereinafter referred to as the "Contract"), Altartuitively, on wrltaan request of the Contractor, the Owner shall make payments of the retention earnings directly to the Escrow Agent, When the Contractor deposits the securities as a substitute for Contract earnings, the Escrow Agent shall notify the Owner within tan (10) days of the deposit, The market value of the securities at the time of the substitution shell beat least equal to the cash amouritthen reclul red to he with held as retention under the terms of the Contract between the Owner and Contractor, Securities shall be heldInthe name ofthe Owner, Escrownlo, 20221007-028� and shall designate the Contractor ns the beneficial owner, 2. The owner shall make progress payments to the Contractor for those funds which otherwise would be withheld from progress payments pursuant to the Contract provisions, provided that the Escrow Agent holds securIdes In the form and amount specified above. 3, When the Owner makes payment of retention earned directly to the Escrow Agent, the Escrow Agent shall hold them for the benefltof the Contractor until the time that the escrow created underthis CoMract Is terminated, The Ccmtraclor may direct the Investment of the payments Into securities. All terms and conditions of this Agreement and the rights and responsibilities ofthe parties shall be equally applicable and binding when the owner pays the Escrow Agent directly, 4. Contractorsholf be responsible for paying all fees for the expenses Incurred by Escrow Agent In administering the Escrow Account and all expenses of the Owiter.The Owner, Conbractor and Escrow Aitcht shall determine these expenses and payment terms. S. Th a Interest earned on the securities, certificates of deposit or the money market accounts held In escrow and a I I Interest a a rned on that Interest sh all b a for the sole account of Contractor and sh all be subject to wIthdrawa I by Contractor at any Mme and from time to time without notice to the Owner, 6. Contractorshall have the right to withdraw all or any part of principal In the Escrow Account only by written notice to Esc raw Agent a ccompan I ad by written a utharizaticn from the Owner to the �sc row Age nt that the own or consents to the withdraws I of the a mount sought to be withdrawn by Contractor. 7. The Ownerlhall have a rightto draw upon the securities In the eventof default by Contractor. Upon seven (7) days written notice to the Escrow Agentfrom Owner of the default, the Escrow Agent shall Immediately convert the securities to cash a ftd she H distribute the cash as instructed by the Owner. All 1WU fmA�, 0 MI ftcHk PfftlorgArk cwtntw rim Apawnt, P*d WIZA121 103