8531 EVERGREEN WAY COMMUNITY HEALTH CENTER 2025-05-28

(3) Principal must have paid all sums with respect to maintenance, repair and replacement of Required Improvements owing to laborers, contractors, mechanics, subcontractors, materialmen and suppliers or others. B. Corrections. Any corrections required by the City shall be commenced within seven (7) days after notification by the City and completed within thirty (30) days of the date of notification. If correction is not performed in a timely manner, the City shall have the right, without recourse to legal action, to take such action under this bond as described in Section C below. C. Default (1) If Principal defaults by not performing the above conditions and not correcting such non- performance as set forth in Section B above, then Surety shall, within twenty (20) days after demand of the City, make a written commitment to the City that Surety will either: a. remedy the default itself with reasonable diligence pursuant to a time schedule acceptable to the City; or b. tender to the City within an additional ten (10) days the amount necessary, as estimated by the City, for the City to remedy the default, up to the total Bond Amount. Upon completion of Surety's duties under either of the options above, Surety shall then have fulfilled its obligations under this bond. If Surety elects to fulfill its obligation pursuant to the requirements of subsection C(1)(b), the City shall notify Surety of the actual cost of the remedy, upon completion of the remedy. The City shall return, without interest, any overpayment made by Surety, and Surety shall pay to the City any actual costs, which exceeded the City's estimate, limited to the Bond Amount. (2) If Principal defaults by not performing the above conditions and not correcting such non- performance as set forth in Section B above, then the City, its contractors, employees and agents shall also have the right at the City's sole election to enter onto the property containing the Required Improvements for the purpose of maintaining, repairing or replacing the Required Improvements. This provision shall not be construed as creating an obligation on the part of the City to maintain, repair or replace any Required Improvements, and this subsection (2) is in addition to any other remedies the City may have under this bond or under applicable law. D. Extensions and Changes. Except for the length of the Warranty Period (which shall remain unchanged), Surety for value received agrees that no change, extension of time, alteration or addition to the terms of the Permit referenced above or the plans or specifications accompanying the Required Improvements shall in any way affect its obligation on this bond, and Surety waives notice of any such change, extension of time, alteration or addition to the terms of the Permit or the Required Improvements. E. Bond Expiration. This bond shall remain in full force and effect until the obligations secured hereby have been fully and until released in writing by the City. F. No Limitation for Principal. Principal agrees that its obligation to maintain, repair and replace the Required Improvements is not limited to the Bond Amount G. General. In the event the City is required to institute litigation to obtain performance pursuant to this bond, Principal and Surety agree to pay all reasonable attorney's fees and cost which are incurred by City. This bond may be executed in two (2) original counterparts, and shall be signed by the parties' duly authorized officers. This bond will only be accepted if it is accompanied by a fully executed and original power of attorney for the officer executing on Warranty Bond — Page 2