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<br />'*- Liber1J.
<br />\p Mutual.
<br />
<br />Interchange Corporate Center
<br />450 Plymouth Road, Suite 400
<br />Plymouth Meeting, PA. 19462-1644
<br />Ph. (610) 832-8240
<br />
<br />PERFORMANCE BOND
<br />
<br />Bond Number: 190-014-577
<br />
<br />KNOW ALL MEN BY THESE PRESENTS, that we
<br />Peterson Mechanical, Inc., 3001 1st Avenue North, Fargo, ND 58102
<br />
<br />, as principal (the "Principal"),
<br />and LIBERTY MUTUAL INSURANCE COMPANY, a Massachusetts stock insurance company, as surety (the
<br />"Surety"), are held and firmly bound unto
<br />Cass County Government, PO Box 2806, Fargo, ND 58108-2806
<br />
<br />the penal sum of
<br />One Hundred Sixty-One Thousand, One Hundred Nine and No/100s
<br />
<br />, as obligee (the "Obligee"), in
<br />
<br />Dollars ($161,109,00 ),
<br />for the payment of which sum well and truly to be made, the Principal and the Surety, bind ourselves, our heirs,
<br />executors, administrators, successors and assigns, jointly and severally, firmly by these presents.
<br />
<br />WHEREAS, the Principal has by written agreement, dated the 17th day of May 2005
<br />entered into a contract (the .Contract") with the Obligee for
<br />
<br />Cass County Vector Control, Vector Control Office, 1201 West Main Avenue, West Fargo, ND
<br />Mechanical Construction
<br />
<br />NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal shall promptly and
<br />faithfully perform the Contract, then this obligation shall be null and void; otherwise it shall remain in full force and
<br />effect.
<br />
<br />PROVIDED AND SUBJECT TO THE CONDITIONS PRECEDENT:
<br />
<br />1. Whenever the Principal shall be, and declared by the Obligee to be in default under the Contract, the Obligee
<br />having performed the Obligee's obligations thereunder, the Surety may promptly remedy the default, or shall
<br />promptly:
<br />
<br />1.1 Arrange for the Principal, with consent of the Obligee, to perform and complete the Contract; or
<br />
<br />1.2 Undertake to perform and complete the Contract itself, through its agents or through independent
<br />contractors; or
<br />
<br />1.3 Obtain a bid or bids from alternative contractors to complete the Contract in accordance with its terms and
<br />conditions, and upon determination by the Surety of the lowest responsible bidder, or if the Obligee elects,
<br />upon determination by the Obligee and the Surety jointly of the lowest responsible bidder, arrange for a
<br />contract between such bidder and the Obligee, and make available as work progresses (even though
<br />there should be a default or a succession of defaults under the contract or contracts of completion
<br />arranged under this paragraph) sufficient funds to pay the cost of completion less the balance of the
<br />contract price; but not exceeding the amount set forth in the first paragraph of this bond. The term
<br />"balance of the contract price," as used in this paragraph, shall mean the total amount payable by the
<br />Obligee to the Principal under the Contract and any amendments thereto, less the amount properly paid
<br />by the Obligee to the Principal; or
<br />
<br />1.4 Waive its right to perform and complete, arrange for completion, or obtain a new contractor and with
<br />reasonable promptness under the circumstances:
<br />
<br />a. After investigation, determine the amount for which it may be liable to the Obligee and, as soon as
<br />practicable after the amount is determined, tender payment therefor to the Obligee; or
<br />
<br />b. Deny liability in whole or in part and notify the Obligee citing reasons therefor.
<br />
<br />LMIC-S100
<br />
<br />Page 1 of 2
<br />
<br />Rev. 3/04
<br />
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