Common use of Performance Surety Clause in Contracts

Performance Surety. 10.8.1 Franchisee shall provide to County within ten (10) days after execution of this Agreement, a cash or surety bond in an amount at least equal to the yearly average of two months gross revenue provided by a Surety Company with a Best rating of "A" or better and licensed to do business in the State of California, conditioned upon the full faithful performance of all covenants and conditions of this Agreement and any extensions or amendments thereto and Chapter 8.12 of the San Xxxx Obispo County Code. Said surety bond must be approved by County prior to performance of any work under this Agreement. A certificate of deposit or an irrevocable letter of credit for the required amount from a bank acceptable to County may be provided in lieu of said surety bond. 10.8.2 The bond, letter of credit or other similar instrument shall be issued for a period of not less than one (1) year and Franchisee shall provide a new bond, letter of credit or similar instrument, and evidence reasonable satisfactory to County of its renewability, no less than thirty (30) calendar days prior to the expiration of the bond, letter of credit or other similar instrument then in effect. County shall be notified in writing of any cancellation by the issuer of the bond at least thirty (30) says prior to such cancellation. 10.8.3 Subject to the notice and hearing procedures set forth herein, if County determines that Franchisee has substantially failed to keep and perform any covenant or condition of this Agreement and any extensions or amendments thereto, County may require Surety to perform or may resort to any certificate of deposit or irrevocable letter of credit received in lieu of a bond. In that event, County shall notify the Surety of Franchisee's failure to keep and perform a covenant or condition, as well as the amount of time necessary for performance as determined by County. If the Surety fails to perform, County may perform and assess the Surety on its bond for all costs associated with such performance. The costs of performance may include all labor, equipment, insurance, and any and all other reasonably necessary resources as determined by County to perform the work required under this Agreement. 10.8.4 County shall annually review the adequacy of the amount of the surety bond and increase or decrease the bond in an amount at least equal to the yearly average of two months gross revenue or an amount determined adequate by County. County shall notify Franchisee in writing of any changes in the required bond amount not later than thirty (30) days after the completion of said review. Franchisee shall renew said surety bond as necessary and file it with County at least thirty (30) days prior to the expiration of the bond; provided, however, that Franchisee shall not be required to increase or decrease the amount of the bond prior to six (6) months after any such bond adjustment required pursuant to this paragraph.

Performance Surety. 10.8.1 ‌ 11.8.1 Franchisee shall provide to County within ten (10) days after execution of this Agreement, a cash or surety bond in an amount at least equal to the yearly average of two months gross revenue (2) months’ Gross Revenue provided by a Surety Company with a Best rating of "A" or better and licensed to do business in the State of California, conditioned upon the full faithful performance of all covenants and conditions of this Agreement and any extensions or amendments thereto and Chapter 8.12 (“Solid Waste Management”) of the San Xxxx Obispo County Code. Said surety bond must be approved by County prior to performance the provision of any work under services pursuant to this Agreement. A certificate of deposit or an irrevocable letter of credit for the required amount from a bank acceptable to County may be provided in lieu of said surety bond. 10.8.2 11.8.2 The bond, letter of credit or other similar instrument shall be issued for a period of not less than one (1) year and Franchisee shall provide a new bond, letter of credit or similar instrument, and evidence reasonable satisfactory to County of its renewability, no less than thirty (30) calendar days prior to the expiration of the bond, letter of credit or other similar instrument then in effect. County shall be notified in writing of any cancellation by the issuer of the bond at least thirty (30) says days prior to such cancellation. 10.8.3 11.8.3 Subject to the notice and hearing procedures set forth herein, if County determines that Franchisee has substantially failed to keep and perform any covenant or condition of this Agreement and any extensions or amendments thereto, County may require Surety surety to perform or may resort to any certificate of deposit or irrevocable letter of credit received in lieu of a bond. In that event, County shall notify the Surety surety of Franchisee's failure to keep and perform a covenant or condition, as well as the amount of time necessary for performance as determined by County. If the Surety surety fails to perform, County may perform and assess the Surety surety on its bond for all costs associated with such performance. The costs of performance may include all labor, equipment, insurance, and any and all other reasonably necessary resources as determined by County to perform the work services required under this Agreement. 10.8.4 11.8.4 County shall annually review the adequacy of the amount of the surety bond and increase or decrease the bond in an amount at least equal to the yearly average of two (2) months gross revenue Gross Revenue or an amount determined adequate by County. County shall notify Franchisee in writing of any changes in the required bond amount not later than thirty (30) days after the completion of said review. Franchisee shall renew said surety bond as necessary and file it with County at least thirty (30) days prior to the expiration of the bond; provided, however, that Franchisee shall not be required to increase or decrease the amount of the bond prior to six (6) months after any such bond adjustment required pursuant to this paragraph.