Renewal Agreement Bond

RENEWAL AGREEMENT BOND

Parties and Bond Identification

Bond Number:    Original Agreement Date:    Reference:

Recitals

WHEREAS, Principal and Obligee entered into the agreement identified above (the Agreement) under which Principal agreed to perform certain obligations and to provide security for those obligations by way of a bond; and

WHEREAS, the parties desire to extend and renew the security provided by the original bond for an additional term under the terms and conditions set forth in this Renewal Agreement Bond; and

WHEREAS, the parties intend that this instrument operate as a bond, guarantee and agreement for the continued faithful performance and payment obligations of Principal under the Agreement to the extent set forth below.

Bond Terms and Conditions

Bond Amount: . Effective Date: . Renewal Period: months.

The Principal hereby binds itself to pay and perform all sums and obligations, including but not limited to liquidated amounts, contractual penalties, and costs of enforcement, that may become due under the Agreement during the Renewal Period. The obligation of Principal under this Renewal Agreement Bond is primary and unconditional, and shall remain in full force and effect until the earlier of expiration of the Renewal Period or termination in accordance with the Term and Termination provisions below.

Scope of Work

Payment Terms

Late Fee: % of overdue amount per month, or the maximum permitted by law, whichever is less. Any late fees, interest, or collection costs incurred by Obligee as a result of Principal's failure to pay or perform shall be recoverable from Principal under this bond.

Term and Termination

Term Start Date: .    Term End Date: .

Either party may terminate this Renewal Agreement Bond for convenience upon written notice to the other party delivered not less than days prior to the intended termination date; provided, however, that termination shall not affect obligations that accrued prior to termination and shall not diminish any rights of Obligee arising from Principal's default prior to termination. Termination for cause shall follow the cure procedures set forth below.

Cure Period for Default: Upon delivery of written notice of default by Obligee, Principal shall have days to cure the default. If Principal fails to cure within the cure period, Obligee may make a claim hereunder and recover amounts due under this bond up to the Bond Amount.

Claims Procedure

A claim under this Renewal Agreement Bond shall be made by delivery of written notice to Principal and to any surety or bonding representative if applicable, specifying the nature of the default and the amount claimed. Obligee's written demand shall be conclusive evidence of nonpayment or nonperformance for the purpose of enforcing this bond, subject to Principal's right to contest such demand in a court of competent jurisdiction.

Confidentiality

The parties acknowledge that, in the course of performance and enforcement of this Renewal Agreement Bond, each may receive Confidential Information of the other. "Confidential Information" means nonpublic business, financial, technical or operational information disclosed in writing and marked confidential or disclosed orally and confirmed in writing as confidential within thirty (30) days.

Each party agrees to (a) use Confidential Information solely for purposes of performing or enforcing obligations under this bond; (b) restrict disclosure of Confidential Information to those employees, agents, counsel or advisors who have a legitimate need to know and who are bound to confidentiality; and (c) not disclose Confidential Information to third parties without prior written consent of the disclosing party, except as required by court order or applicable law. The foregoing obligations shall not apply to information that is publicly known through no fault of the receiving party or that was lawfully in the receiving party's possession prior to disclosure.

Representations and Warranties

Each party represents and warrants that it has the full right, power and authority to enter into and perform this Renewal Agreement Bond and that the person executing this instrument on its behalf is duly authorized to do so.

Governing Law and Dispute Resolution

This Renewal Agreement Bond shall be governed by and construed in accordance with the laws of the State of , without regard to its conflict of law rules. Any dispute arising out of or relating to this bond shall be subject to the exclusive jurisdiction of the state and federal courts located in that jurisdiction.

Indemnity and Remedies

Principal shall indemnify and hold harmless Obligee from and against any and all loss, liability, cost and expense (including reasonable attorneys' fees) incurred by reason of Principal's failure to perform or pay under the Agreement or this bond. Remedies available to Obligee under this bond are cumulative and in addition to any other rights or remedies available at law or equity.

Entire Agreement and Amendments

This Renewal Agreement Bond, together with the Agreement and any written amendments executed by the parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and communications, whether written or oral, concerning such subject matter. No amendment or waiver of any provision of this bond shall be effective unless in writing and signed by both parties.

Severability

If any provision of this Renewal Agreement Bond is held invalid or unenforceable, the remaining provisions shall remain in full force and effect and shall be enforced to the greatest extent permitted by law.

Notices

All notices required or permitted under this bond shall be in writing and shall be deemed given when delivered personally, sent by certified mail, return receipt requested, or sent by nationally recognized overnight courier to the addresses set forth above or to such other address as a party may designate by written notice to the other.

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