8F Consent 2008 0902 - Laserfiche WebLink

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X10-t~~)-1'K~ ~.~•.~ TAKEOVER AGREEMENT BETWEEN WASHINGTON INTERNATIONAL INSURANCE COMPANY AND THE CITY OF SAN LEANDRO This Takeover Agreement ("Agreement") is dated and effective January 24, 2008, between Washington International Insurance Company ("Washington International"), an Arizona corporation (hereinafter "Surety"), and, the City of San Leandro (hereinafter "Obligee"). L i RECITALS A. On March Z , 2005, Obligee entered into a contract in the amount of $4,140,000.00 (the "Contract") for a project known as Washington Manor Library (the "Project") with Krama, Inc. (the "Principal"). B. As required by the Obligee, Surety issued Performance and- Payment Bonds numbered S- 902-8422 on or about March 14, 2005, in the amount of $4,140,000 (the "Performance Bond and Payment Bond")naming Krama, Inc. as Principal and the City of San Leandro as Obligee. C. On September 21, 2007, the Obligee, pursuant to the terms of the Contract, declared the Principal in default and terminated the Principal's right to perform the work on the Project. D. On September 21, 2007, the Obligee made demand upon the Surety to complete the Project pursuant to the terms of the Performance Bond. E. Surety and Obligee met on September 28, 2007, to discuss the obligations and option of each party and terms and conditions under which the Surety shall procure the completion of the remaining work under the Contract. NOW, THEREFORE, based on the exchange of valuable consideration, the receipt and sufficiency of which is acknowledged, and based on the Recitals set forth above which form a part of this Agreement, Surety and Obligee agree to the following terms and conditions: Recitals. The above recitals are adopted and made a part of this Agreement. 2. Incorporation of the Contract. The Contract is incorporated by reference into this Agreement, including, without limitation, the Instructions for Bidders, the Contract Terms and Conditions, the Plans or Drawings, and any Special Conditions and Specifications, and all addenda, change orders and modifications to those documents issued in accordance with the Contract. 3. The Current Contract Amount. As of the date of this Agreement, the adjusted Contract Amount is $4,489,437.00 (the "Contract Amount"). Principal has been paid $4,116,464.45 to date, and Obligee has deposited $224,256.55 into an escrow account for retainage. Obligee has withheld $120,000,00 from payments due to Principal for liquidated damages. No further deductions shall be