Business Bonding Agreement

BUSINESS BONDING AGREEMENT

Parties

Principal Name:

Surety Name:

Obligee Name:

Recitals

WHEREAS, Principal operates a business that requires one or more surety bonds to secure performance and payment obligations in connection with its contracts and undertakings; and

WHEREAS, Surety is authorized to issue bonds on behalf of Principal and is willing to issue bonds subject to the terms of this Agreement, including payment of premiums and compliance with obligations set forth below; and

WHEREAS, Obligee is the beneficiary of the bond(s) issued, as described in each bond instrument executed under this Agreement.

Bond Particulars

Bond Type:

Bond Number (if assigned):

Bond Penal Sum: $

Effective Date of Bond:

Scope of Work

The Surety shall issue bond(s) necessary to secure the obligations described above in accordance with the terms of the underlying contract documents and this Agreement. Principal shall remain primarily responsible for performance of the obligations secured by each bond.

Payment Terms

Bond Premium Amount: $

Late Payment Fee: . Any unpaid premium or fee may be subject to collection costs, attorneys' fees, and interest as permitted by law.

Principal acknowledges that failure to timely pay premiums or indemnity obligations entitles Surety to suspend issuance of further bonds, cancel outstanding bonds to the extent permitted by law, and pursue reimbursement and collateral as provided in this Agreement.

Term and Termination

Agreement Start Date:

Agreement End Date (if any): . If left blank, this Agreement continues until obligations under all issued bonds have been fully satisfied or until terminated in accordance with this Section.

Termination upon Notice: Either party may terminate this Agreement upon written notice to the other party delivered at least days prior to the effective termination date. Termination does not relieve Principal of liabilities arising from bonds issued prior to termination and does not impair Surety's rights to complete or pursue claims under those bonds.

Indemnity and Reimbursement

Principal agrees to indemnify, defend and hold harmless Surety from and against any and all losses, liabilities, demands, claims, damages, costs and expenses (including reasonable attorneys' fees) incurred as a result of Surety issuing bond(s) on behalf of Principal, whether such liabilities arise before or after termination of this Agreement.

Principal shall promptly reimburse Surety for any amounts paid by Surety on account of claims, judgments or settlements under any bond, together with interest at the rate set forth in the payment terms, and shall provide collateral or security upon demand to secure such reimbursement obligations.

Confidentiality

Each party shall maintain in confidence all non-public information disclosed by the other party that is identified as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure. Confidential information does not include information that (i) was publicly known at the time of disclosure, (ii) becomes publicly known through no fault of the receiving party, (iii) was rightfully received from a third party without restriction, or (iv) is independently developed without use of the disclosing party's confidential information.

Notwithstanding the foregoing, Surety may disclose confidential information as required by law or regulation or to its reinsurers and professional advisors, provided that such recipients are bound by confidentiality obligations consistent with this Agreement.

Governing Law; Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles. Any dispute arising out of or relating to this Agreement shall be resolved by final and binding arbitration conducted in accordance with the arbitration rules agreed by the parties, unless the parties elect to proceed in a court of competent jurisdiction.

Representations; Warranties

Each party represents and warrants that it has the full power and authority to enter into this Agreement and that the person signing this Agreement on its behalf is duly authorized to bind the party. Principal represents that all information provided to Surety in support of bond issuance is true, complete and accurate.

Entire Agreement; Severability

This Agreement, together with any bond instruments, power of attorney, indemnity agreement and schedules executed in connection herewith, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements, understandings, representations and warranties, whether written or oral. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Notices

Additional Provisions

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