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I The Contractor and the Surety, jointly and severally, bind themselves, their heirs, executors, administrators,
<br />successors and assigns to the Owner to pay for labor, materials and equipment furnished for use in the performance of
<br />the Construction Contract, which is incorporated herein by reference, subject to the following terms.
<br />2 If the Contractor promptly makes payment of aR sums due to Claimants, and defends, indemnifies and holds
<br />harmless the Owner from claims, demands; liens or suits by any person or entity seeking payment for labor, materials or
<br />equipment furnished for use in the performance of the Construction Contract, then the Surety and the Contractor shall
<br />have no obligation under this Bond.
<br />3 if there is no Owner Default under the Construction Contract, the Surety's obligation to the Owner under this Bond
<br />shall arise after the Owner has promptly notified the Contractor and the Surety (at the address described in Section 13) of
<br />claims, demands, liens or suits against the Owner or the Owner's property by any person or entity seeking payment for
<br />labor, materials or equipment furnished for use in the performance of the Construction Contract and tendered defense of
<br />such claims, demands, liens or suits to the Contractor and the Surety,
<br />4 When the ()wner has Satisfied the conditions, in Section 3, the Surety shall promptly and at the Surety's expense
<br />defend, indemnify and hold harmless the Owner against a duly tendered claim, demand, lien or suit,
<br />6 The Surety's obligations to a Claimant under this Bond shall arise after the following:
<br />5.1 Claimants, who do not have a direct contract with the Contractor,
<br />T�
<br />.1 have furnished a written notice of non-payment to the Contractor, stating wit w p nXV
<br />i, r cy the
<br />amount claimed and the name of the party to whom the materials were, or equipment plied or for
<br />whom the labor was done or performed, within ninety (90) days after having last ormeta
<br />orme"lp , pe -or last furnished
<br />materials oiequipment included in the Claim', and
<br />.2 have sent a Claim to the Surety (at the address described in Section 13),
<br />5.2 Claimants, who are employed by or have a direct contract with the Contractor, have sent a Claim to the Surety (at
<br />the address described in Section 13).
<br />6 If a notice of non-payment required by Section 5, 1.1 is given by the Owner to the Contractor, that is sufficient to
<br />satisfy a Claimant's obligation to furrdsh a written notice of non-payment under Section 5.1.1.
<br />7 When a Claimant has satisfied the conditions of Sections 5.1 or 5.2, whichever is applicable, the Surety shall
<br />promptly and at the Surety's expense take the following actions:
<br />7-1 1%
<br />Send an answer to the Clamant, with a copy to the Owner, within sixty (60) days after rece0 e Claim,
<br />5 tati
<br />the amounts that are undisputed and the basis for challenging any amounts that are dispute�,�,
<br />7.2 Pay or arrange for payment of any undisputed amounts.
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<br />7.3 The Surety's failure to discharge its obligations under Section 7.1 or Section 7.1 sha
<br />ll all note wed to constitute
<br />a waiver of defenses the Surety or Contractor may have or acquire as to a Claim, except as to'undisputed amounts for
<br />which the Surety and Claimant have reached agreement, If, however, the Surety fails to discharge its obligations under
<br />Section 71 or Section 7.2, the Surety shall indemnify the Claimant for the reasonable attorney's fees the Claimant incurs
<br />thereafter to recover any sums found to be due and owing the Claimant.
<br />The language in this document conforms to the language used in AIA Document A312— 2010. Form 15-02-0574 FED (rev. 7-1 A)
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