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MA FY08/09-CL100409 T H E •C 1 T Y •O F F ILE COPPELL 9 April 9, 2010 x ' s ' Jimmy Sparks SureTec 9737 Great Hills Trail Suite 320 Austin TX 78759 RE: FY 08/09 Street & Alley Repair Contract Dear Mr. Sparks: The City of Coppell is still holding 10% retainage on the referenced project in the amount of $17,992.13. As of this date, the City has not received the Maintenance Bond or Affidavit of Final Payment. Under the terms of our contract, we will not release final payment until those items are received. If you wish to request partial release of remaining funds to satisfy any outstanding claims prior to full release, please submit that request for release in writing, The request should clearly state what companies are still owed monies and the amounts owed. The request should also include the affidavit that all bills have been settled with the exception of the ones indicated. We will then issue final payment when you are able to provide a full affidavit of all bills paid and the required maintenance bond. Call me at the number below if you have any questions. Sincerely, Keith Marvin, P.E. Project Engineer Office: 972/304 -3681 Fax: 972/304 -3570 kmarvin(d cop elltx.gov cc: David Dodd, Nichols, Jackson, Dillard, Hager & Smith LLP Jerod Anderson, Purchasing Agent Mr. Majid Khalaf Procon Paving & Construction 10361 Bickham Rd Dallas TX 75220 255 PARKWAY * P.0. BOX 9478 * COPPELL TX 75019 * TEL 972/462 0022 * FAX 972/304 3673 A ,.�, ∎N Jimmy Sparks s, (512) 314 -3660 Direct (512) 314-3661 Facsimile ll r `► jsparks@suretec.com S u reTe January 8, 2010 City of Coppell ATTN: Keith Marvin, P.E. 255Parkway P.O. Box 9476 Coppell, TX 75019 RE: Principal: Procon Paving & Construction Bond No.: 4370965 Obligee: City of Coppell Project: Street and Alley Repair Dear Mr. Marvin: This correspondence will advise that at this time SureTec is requesting that all funds be delivered directly to SureTec at the address listed below. As you know the project is a public project and is governed by the Texas Government code 2253 and SureTec supplied Payment and Performance bonds in accordance with 2253. As you may be aware, several subs and /or suppliers have been submitting claims and they have been referred to SureTec. Please note the payment bond is there to allow for subs and suppliers to have a source of recovery if they are not getting paid on the project, as they cannot lien a public job, Once The City of North Texas sends payment to SureTec, we will settle all claims and pay perfect claims (valid and timely), and deny those that did not comply with Chapter 2253 of the Government Code. Once The City of North Texas has made all payments due, Procon and /or SureTec will make sure that all perfected claims are paid. I trust this correspondence provides you with the assurance needed to make all remaining payments to SureTec. I understand that Procon has sent you a letter of Directive ( "LOD ") as well indicating that all remaining funds should be set to SureTec as well. Please find the enclosed General Indemnity Agreement for your review. This indemnity agreement executed by Procon grants any accounts receivables of Procon to SureTec. I trust this correspondence provides you with the assurance needed to make the remaining payments to SureTec. ctful my p -, s Surety Claims Manager Cc: Procon Paving & Construction (Majed Khalaf) — via e-mail 9737 Great Hills Trail • Suite 320 • Austin, Texas 78759 • 512.732.0099 • Toll Free 866.732.0099 • Fax 512.732.2663 Z d ll617 'ON 3 13dNS WdSti :E OLH ZZ NHr CO V) CO ,� 0 II N 0 N 0 CO F I` 0 0T CO W II M O M .--I .-1 W Z 6i •■ V qO 40 p .- cNi I- CO k0 0 0 rn rn a O N q I- CO' ,--, n cn • N q s O r` . w u)v)m • O W 2 z N N N N 6 CI 0 0 N N M CO a CO 'r I N N Z F 00000 0 0 0 0 0 0 0 F C] • C7 ¢ z W a ce E» W x� - - a w v�im��a a A 14 cO m q Q O W 0 U Q' C4 Q a a � 1 — 00 0 N CO CO CO °' tr. �� v o�v rnrn° 0o O T N ,-. 6 � � o E„ a a H3 ER ta N RI x 0. 11 W 0 v ri a a z N N (NI co co • < N N CO I.6 CO O a 00 . tr N N ix O F 0 0 0 0 0' (.4 O 0 4 . - -, N 0' F F F F ,; z 0 ¢ N tofa m Q q a O Q �g 0 cis r� rsi W m �Q0, 0 ca ,p ovod;o E., W --0 vi v d\ 69 (ft ER ER p E- q a K M In 0 u) N w NO�+MN a • Q W O F a a. a . W E. a 0 > 41 x a d ca E" ¢ d ¢ E-, -< w e z z z Z W a rX ill al al Z + x o m w w z E a ,.i a - z a a O ot W c4 a w F F 10 a 0 0 w w w U1 N U] a U a., 0 i .. .. .a ¢ a a p a. a a. a. a 0 w wryaarxWa: a 0 0 0 0 0 0 w 0 0 0 0 0 z — 0 w w 4. , 0 0 0 0 o z U R. as as a; 0 0 0 a a U U U E W W a •• N CO • F L.11 0OO W ���-.. nn a a 3 Jan 19 10 02:35p Eyad 9728890295 p.1 PROCcE PAVING & CONSTRUCTION 272.830.9212 January 19, 20010 City of Coppell ATTN: Keith Marbin Re: Contract Amount: $319,000 Project: Annual contract pavement repair Dear Mr. Marbin: We request that you send all contract proceeds earned and to be earned under our contract with you directly our project disbursing administrator, SureTec Information systems, Inc. at the following address: Procon Paving & construction C/O SureTec Information Systems, Inc. ATTN: Jimmy Sparks 9737 Great Hills Trail, Ste., 320 Austin, TX78759 Your Checks will still be made payable to Procon Paving & Construction. This directive may only be changed by written consent of our bonding company SureTec Insurance Company ( "SureTec "). You signature below, indicating your agreement to make payment in this manner, is needed to process the payment accordingly. We look forward to completion of the project very soon. Should you have any questions, please do not hesitate to contact me. Majed Kalaf Procon Paving & Construction Agreement and Acknowledgement Owner: City of Coppell By: Y1U C Authorize Represent five Date: \ / \ Titre: r e. J,4 A Kw S Y Proem Paving and Construction, Inc. GENERAL AGREEMENT OF INDEMNITY This General Agreement of Indemnity, herein called the "Agreement," is made and executed this 21 day of Mare , 2009 by the undersigned, herein called the "indemnitors," in favor of, and for the benefit of SureTec Insurance Company and Its ocesuretiies, reinsurers, and other sureties through whom it may procure the execution of bonds and undertaking, herein collectively called the "Company." W tnesseth: WHEREAS, certain bonds, guaranties, obligations of suretyship, undertakings and other Instruments in the nature of a bond or ancillary thereto (all such bonds, guaranties, obligations, and undertakings being collectively referred to herein as "bonds ") may have heretofore been, and may hereafter be, required by, for, or on behalf of the Indemnitors or any one or more of the Indemnitors, in whosd bonds the Indemnitors do hereby affirm to have a substantial material and beneficial interest; and as a condition precedent to the execution of any and all such bonds, the Company requires execution of this General Agreement of Indemnity; NOW, THEREFORE, in consideration of these premises, and of the execution or continuance or renewal of such bonds, and for other good and valuable consideration, the Indemnitors do, for themselves, their heirs, executors, administrators, personal representatives, assigns and any and all of their wholly or partially owned subsidiary companies, subsidiaries of subsidiaries, proprietorships, divisions, affiliates, partnerships, joint ventures or co- ventures in which any of the undersigned Indemnitors, have any interest or participation, whether open or silent, now in existence or which may hereafter be created or acquired, jointly and severally agree with, and make this General Agreement of Indemnity in favor of, and for the benefit of, the Company as follows: 1, The lndemnitors shall pay to the Company, at its home office at 952 Echo Lane, Suite 450, In the City oP Houston, Harris County, Texas, all sums due or to become due hereunder, including, but not limited to, all premiums, fees, and charges at the rates and at the times specified by Company, and will continue to pay the same when such premium, fee, or charge is annual and when additional premiums, fees, or charges are due for changes to underlying bonded obligations. Premiums are due and payable upon execution of bonds and upon renewal thereof. Th e indemnitors shall be liable for additional and renewal premiums hereunder until the Company shall be discharged and released from any and all liability and responsibility upon and from each such bond or liability arising therefrom, and until the lndemnitors shall deliver to the Company at its home office in Houston, Texas, competent written evidence, satisfactory to the Company, of the Company's discharge from all liability on such bond or bonds. The Indemnitors shall also pay to Company, its affiliates, or to third parties, as the case may be, all underwriting, inspection, funds disbursement, escrow, special handling, fling, recording, and similar fees required or charged in connection with the underwriting, execution, or administration of any bonds. 2. The Indemnitors shall Indemnify and save the Company harmless from and against every claim, demand, liability, cost, loss, charge, suit, judgment, award, fine, penalty, and expense which the Company may pay, suffer, or incur in consequence of having executed, delivered, or procured the execution of such bonds, or any renewals or continuations thereof or substitutes therefor, including, but not limited to, court costs, mediation and facilitation fees and expenses, funds disbursement and escrow fees, fees and expenses of attorneys, accountants, adjusters, inspectors, experts, and consultants, whether on salary, retainer, in house, or otherwise, and the expense of determining liability, or procuring, or attempting to procure, release from liability, or in bringing suit or claim to enforce the obligation of any of the lndemnitors under this Agreement. in the event the Company deems it necessary to respond to, make an investigation of, or settle, defend, or compromise a claim, demand or suit, the General Agreement of Indemnity Rev 11 -06 Page t of 9 E d [L6 'ON 3313US AdS17 E OI OZ 'lZ 'Ndr A S ureTe c Date: January 22, 2010 From: Jimmy Sparks To: Keith Marvin e-mail: Fax: (972) 304 -3570 Phone: 866 -732 -0099 (toll -free) Direct: (512) 314 -3660 Re: City of Coppell Fax: (512) 314 -3661 No. of Pages: 9 CC: Dear Mr. Marvin; Per our conversation, please find the attached correspondence for your review. Should you have any questions or concerns, please do not hesitate to contact me. Sincerely, Jimmy Sparks 9737 Great Hills Trail, Suite 320 Austin, TX 78759 'd l lob 'ON o313ps Wdti:E OlOZ 'Zl up Indemnitors acknowledge and agree that all loss, cost, and expense attendant to such response, investigation, settlement, defense, and compromise, whether incurred internally or otherwise, and whether or not indemnitor has offered to defend Company, is included as an indemnified expense and shall be paid by Indemnitors to Company on demand. in the event of payments by the Company, a voucher, affidavit, bordereaux or other evidence of such payments are prima facie evidence of the amount paid, propriety thereof, and of the Indemnitors' liability therefor to the Company. In the event that Indemnitors are covered by any insurance policy or policies for any matter or claim that may be brought against Company, or for which Company may have any exposure or liability, the coverage under such insurance policy or policies shall be primary. Indemnitors waive any and all claims of subrogation against Company. 3. Payment of loss or deposit of cash, cash collateral, or other collateral security acceptable to the Company shall be made to the Company by the Indemnitors as soon as liability exists or is asserted against the Company, whether or not the Company shall have made any payment therefor, Such payment shall be equal to the larger of (a) the amount of any reserve set by the Company, or (b) such amount as the Company, In Its sole Judgment, shall deem ' sufficient to protect it from Toss. The Company shall have the right to use the collateral, or any part thereof, in payment or settlement of any IIability, loss or expense for which the Indemnitors would be obiigated to indemnify the Company under the terms of this Agreement. If for any reason the Company shall deem it necessary to increase a reserve to cover any possible liability or loss, the Indemnitors will deposit with the Company, Immediately upon demand, a sum of money equal to any increase thereof as collateral security to the Company for such liability or loss. Indemnitors acknowledge that there is no adequate remedy at law for the breach of this provision and that payment of damages would not adequately compensate Company for such breach. Accordingly, Company may compel lndemnitors to specifically perform these obligations pursuant to applicable law. 4. The Indemnitors immediately upon becoming aware of any demand, notice, or proceeding preliminary to determining or fixing any liability, with which the Company may be subsequently charged under any such bond, shall notify the Company thereof in writing at its home office, 952 Echo Lane, Suite 450, Houston, Texas, 77024. Recognizing that the Company is relying on the financial information provided by Indemnitors, Indemnitors shall notify the Company immediately of any event which adversely affects the financial stability of any Indemnitor. 5. The Company shall have the right to settle, compromise, prosecute, or defend any claim or action brought against the Company or any indemnitor upon or relating to any bond or any affirmative claims by any lndemnitor against Company or a third party relating to any bonds or any interests granted herein. Company's decision with respect thereto shall be binding and conclusive upon the lndemnitors. 6, The Company, and its designated agents, consultants, and representatives, shall at any and all reasonable times, have free access to the books and records of the Indemnitors. Indemnitors consent to Company's requests for, and use of, consumer credit reports and Investigative consumer credit reports with respect to any of the individual Indemnitors. Any bank, depository, creditor, credit bureau or credit reporting agency, obligee of a bond, subcontractor, material supplier, claimant, prior surety, agent, or other person, firm or corporation possessing records or having information concerning the financial affairs and records or having information conceming the current or past financial affairs and operations of the Indemnitors is hereby authorized to fumish to the Company and Its representatives, consultants, and affiliates, any such records or information requested by the Company. Indemnitors will execute, as requested by the Company, any additional documents necessary to cause the release and production of records and information authorized by this paragraph. 7. In the event the Indemnitors, or any of them, shall (a) fail to pay any premium or underwriting charge or fee when due, or (b) fail to pay any amounts due hereunder, (c) abandon, forfeit or breach a bonded contract or obligation, or have been alleged to have abandoned, forfeited, or breached any such contract, (d) breach or be declared to have breached any bond issued by or at the request of Company, (e) have proceedings instituted against them, or any them, alleging that they are insolvent, or for the appointment of a receiver or trustee for the benefit of creditors, whether such Indemnitor(s) are Insolvent or not, (f) have proceedings instituted against them, or any of them, the effect of which may be to deprive any of them of the use of any part of the equipment, funds, or assets used in connection with the work under bonded contract so as to hinder, delay or impede the normal satisfactory progress of the work, (g) fail to cooperate with Company in the investigation of claims made or threatened to be made against Company, (h) be In breach or default of any funds disbursement, escrow or other agreement executed in connection with any bond, or (1) If any Indemnitor is an individual, the Indemnitor's dying, absconding, disappearing, incompetency, being convicted of a felony or imprisoned, and if the indemnitor is any other entity, any change or threat of change in the character, identify, control, management, beneficial ownership or existence of lndemnitor, or (I) the Company shall become insecure or unsure of the Indemnitors' willingness or General Agreement of Indemnlly Rev 11-08 Page 2 of 9 ti d l L6ti 'ON 3313PS Wd�ti OIOZ 'ZZ 'Nd� ability to perform their obligations hereunder, and irrespective of whether lndemnitors have been declared in default under any bond or undertaking, the Company shall have the right, but not the obligation, to. (x) take possession of the work and under any other contract in connection with which the Company has given its bond or bonds within the purview of this Agreement and, at the expense of the lndemnitors, to continue performance of the contract(s), or cause, consent to, or arrange for, the completion thereof, (y) direct the obligees under such bonds to hold or forward contract proceeds and retainages due, earned, or to become due or earned, under the contract to the Company or its designees for disbursement or offset against other obligations of lndemnitors to Company as it deems necessary or advisable, and/or (z) take such other and further action as the Company may in its sole discretion, deem advisable, prudent, or necessary. 8. lndemnitors shall pay interest on, and interest shall accrue on, all unpaid indebtedness of lndemnitors to Company at an interest rate equal to the lesser of (a) eighteen percent (18 %) per annum or (b) the Highest Lawful Rate (as such term is defined below). Interest on unpaid premiums shall not begin to accrue, however, until 45 days following the date of execution of a bond, or the renewal of a bond, by Company or its attomey -in -tact. Notwithstanding any other provision herein, the aggregate Interest rate charged under this Agreement, including ail charges, fees, or other payments in connection herewith or therewith deemed in the nature of Interest under applicable law shall not exceed the Highest Lawful Rate. It is the intention of Company and lndemnitors to conform strictly to any applicable usury laws. Accordingly, If Company contracts for, charges, or receives any consideration which constitutes interest In excess of the Highest Lawful Rate, then any such excess shall be canceled automatically and, if previously paid, shall at Company's option be applied to the outstanding principal balance due hereunder or be refunded to lndemnitors. As used in this paragraph, the term "Highest Lawful Rate means the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under the laws applicable to Company which are presently in effect or, to the extent allowed by law, under such applicable laws which may hereafter be In effect and which allow a higher maximum non - usurious interest rate than applicable laws now allow. 9. As further security, the lndemnitors hereby grant to the Company a security Interest In, and lien on, ail of their equipment, machinery, plant, Inventory, insurance policies, vehicles, tools, real property, general intangibles, and materials, as well as sums, claims, causes of action, accounts, accounts receivable, and rights due or to become due in connection with any contract, whether or not bonded by Company. This Agreement shall constitute a Security Agreement and a Financing Statement for the benefit of the Company in accordance with the Uniform Commercial Code and all similar statutes and a deed of trust or mortgage, as applicable, and may be filed by the Company without notice to perfect the security interests and liens granted herein. The Company may add schedules, property descriptions, and other documents to this Agreement as necessary and may sign a copy of this Agreement, or copy thereof, Where requlred for filing as a Financing Statement or to otherwise perfect any interest granted herein. For the purpose of recording this Agreement, a photocopy of this Agreement acknowledged by a representative of Company before a Notary Public as being a true copy hereof shall be regarded as an original. The grant of the security interest and Ilen position, and any efforts to perfect same, are in addition to, and not in abrogation of, substitution for, nor restriction of any and all rights which the Company has or may have under this Agreement, at law, or in equity. 10. The lndemnitors hereby irrevocably nominate, constitute, appoint and designate the Company and its designees as their attomey in -fact with the right, power, and authority, but not the obligation, to exercise all of the rights and powers of the lndemnitors assigned, transferred, and set over to the Company in this Agreement, and In the name of the lndemnitors, or any one or more of them, to make, endorse, execute, sign, fill in blanks, and deliver any and aft additional or other instruments and writings, including, but not limited to, assignments, financing statements, documents, documents of conveyance, instruments, checks, drafts, deposit, ACH, and wire transfer directives and orders, change of address and account notices, liens and releases thereof, applications, certificates, draw requests, orders, releases, and papers deemed necessary or desirable by the Company, and to collect the proceeds thereof, in order to give full effect not only to the intent and meaning of the obligations assumed, and the agreements made, by lndemnitors hereunder, and the assignments and conveyances made herein, but also the full protection intended to be herein given to the Company under ail other provisions of this Agreement. The lndemnitors hereby ratify and confirm all acts and actions taken and done by the Company and its designees as such attomey- in-fact, The powers and authority granted herein shall not be affected by the disability or Incapacity of the lndemnitors or any one or more of them. 11. The Indbmnitors understand and agree that the circumstances, financial or otherwise, of any one or more of the lndemnitors may change substantially over the period of this agreement and the lndemnitors therefore agree to keep themselves fully informed as to the business activities and financial affairs of any one or more of the General Agreement of Indemnity Rev 11-08 Page 3 of 9 S • d l[617 ON 0313E1S wdgti € o�oz zz Nor Indemnitors and of the risks being engaged in so that the Indemnitors are always aware of the risks of hazards in continuing to act as Indemnitors. The Indemnitors hereby expressly waive any requirement for notice from the Company of any fact or information coming to the notice or knowledge of the Company affecting its rights or the rights or liabilities of the Indemnitors. 12. In the event of any claim or demand being made by the Company against the Indemnitors, or any one of more . of the parties so designated, by reason of the execution of a bond or bonds, the Company Is hereby expressly authorized to settle or compromise with any one or more of the lndemnitors Individually, and without reference or notice to the others, and such settlement or composition shall not affect the liability of any of the others and the Indemnitors hereby expressly waive the right to be discharged by reason of the release of one or more of the Indemnitors, and hereby consent to any settlement or compromise that may hereafter be made. 13. The Company is not required, by reason of any application for a bond or by reason of having issued a previous bond, bid bond, "bondabiNty letter," or otherwise, to execute or procure the execution of or participate in the execution or renewal of any further bond or bonds. The Company, at Its sole option and without assigning any reason therefor, may decline to execute or to participate in or procure the execution or renewal of any bond without impairing the validity of this Agreement or incurring any liability to Indemnitors. Any promise or agreement by . Company or its representatives or agents to issue or execute any bond or undertaking in the future shall be revocable at will by Company unless and until such bond or undertaking is properly authorized, issued and delivered by Company. Company's failure or refusal to Issue final bonds after bld bonds or other proposal guarantees have been issued shall not excuse Indemnitors from their liability to Indemnify and hold Company harmless from any loss or claim against such bid bond or proposal guarantee, nor shall such failure or refusat give rise to any cause of action in favor of Indemnitors for alleged losses of anticipated profits or other benefits. 14. The lndemnitors acknowledge and agree this it is their sole responsibility to provide the proper forms for the bonds to be executed by the Company, and to review and approve any bond and undertaking executed by the Company on its own forms. Neither the Company, nor Its agents, shall have any liability whatsoever to the Indemnitors if they shall fail to furnish the Company with the proper forms or to object to forms furnished by the Company. It shall be the sole responsibility of the Indemnitors to review all bond forms executed by the Company for appropriateness and for any errors or omissions prior to delivery of the bonds to an obligee. The Company and its agents shall have no liability to the Indemnitors on account of any negligence (whether sole or concurrent), inadvertence, error or omission in the preparation, execution, or delivery of any bonds. Prior to requesting that the Company issue any bond, the Indemnitors shall obtain confirmation that the proposed obligee on the bond will accept the Company as surety on the proposed bond, and neither the Company, nor its agents, shall have any iiability whatsoever If any obligee refuses, for whatever reason, to accept the Company as surety on any bond. The Indemnitors agree that the Indemnitors shall be solely responsible for arranging, independent of the Company, for the timely delivery of any bond to the obligee. The Company and its agents shall have no liability to the lndemnitors if any bond is not timely delivered to any obligee for any reason whatsoever, including any negligent acts or omissions on the part of the Company or its agents. 15. The Indemnitors agree that the Company's liability, if any, to the Indemnitors, or to any of them, on account of any acts or omissions by the Company or any of its consultants, affiliates, agents, or representatives (whether such acts or omissions arise in tort, negligence, trespass, breach of contract, by statute, or at law) arising out of or relating to any bonds or any other conduct of the Company or its agents, representatives, employees, attorneys, attorneys -in fact, adjustors, or consultants Is hereby expressly limited to an amount not to exceed the premium actually paid to the Company for such bond. 18. If the Company procures the execution of such bonds by or for other companies, including specifically, but without Iimftallon, American Contractors Indemnity Company, Texas Bonding Company, or U.S. Specialty insurance Company, or executes such bonds with co- sureties, or reeinsures any portions of such bonds with reinsuring companies, then all the terms and conditions of this Agreement shall apply and operate for the benefit of, and may be enforced by, such other companies, co-sureties and reinsurers as their interests may appear. A written statement, signed by an officer of SureTec Insurance Company, attached to a copy of this Agreement before or after execution hereof by Indemnitors, confirming procurement of execution, co- surety, or reinsurance by such other companies, shall be prima facie evidence of the rights of such other companies hereunder and shall be binding on Indemnitors to the same extent as if such companies were named as the Company herein in the first instance. Any action to enforce this Agreement may be brought In the name of such other companies without the necessity of joinder of Company. General Agreement of Indemnity Rev 11-08 Page 4of9 9 'd l l6ti 'ON o313ENS Wd9ti :E OIOZ 'ZZ 'Nd� 17. The liability of the Indemnitors hereunder shall not be affected by the failure of the lndemnitors, or any one or more of them, to sign any contract, bond, rider, undertaking, or this Agreement, nor by any claim that other indemnity, security, or collateral was to have been obtained, nor by the release of any indemnity, nor the return or exchange of any collateral, nor the forbearance or neglect in the enforcement of any requirements relating to the disbursement, administration or control or contract proceeds, that may have been obtained or occurred. if any party signing this Agreement is not bound for any reason, this Agreement shall still be binding upon each and every other Indemnitor. The Company may, but shall not be obligated to, accept other and further Agreements of Indemnity from lndemnitors or others, and may allow Indemnitors or additional indemnitors to execute Agreements of Indemnity In multiple counterparts. It is understood and agreed that the execution of multiple, successive, replacement, or additional Agreements of Indemnity or the release or partial release or the capping of liability of some of the Indemnitors shall not operate to release lndemnitors. Indemnitors waive any and all claims that such other or additional Agreements of Indemnity constitute novetlons, substitutions or releases of the Indemnitors or of this Agreement. 18. This Agreement may be terminated by the Indemnitors, or any one or more of the parties so designated, only upon written notice, of not less than thirty (30) days, sent by registered mail to the home office of the Company, 952 Echo Lane, Suite 450, Houston, Harris County, Texas 77024. In no event, however, shall any such termination notice operate to modify, bar, discharge, limit, affect or impair the liability of the party sending such termination notice, with respect to, upon or by reason of any and all such bonds executed prior to a date thirty (30) days after the date of the Company's actual receipt of such notice in Its home office as aforesaid. Any such termination notice shall not operate to modify, bar, discharge, limit, affect or impair the liability of non - terminating indemnitors, with respect to, upon or by reason of any and all bonds issued by Company. 19. The Indemnitors understand and agree that this document is a continuing agreement to indemnify over an Indefinite period and that bonds Issued by the Company may vary widely in amounts and nature and that the Indemnitors will be bound by all such bonds, and any changes in the amounts of such bonds or underlying obligations, whether or not Company consents to such changes. The Indemnitors shall continue to remain bound under the terms of the Agreement even though the Company may from time to time, heretofore or hereafter, with or without notice to or knowledge of the indemnitors, accept or release other agreements of indemnity, collateral, or conditions in connection with the procurement of bonds, from Indemnitors or others, It being expressly understood and agreed by the lndemnitors that any and all other rights which the Company may have or acquire against the lndemnitors or others under any such other or additional agreements of Indemnity or collateral shall be In addition to, and not in lieu of, the rights afforded Company under this Agreement. 20. This General Agreement of Indemnity is govemed by, and shall be interpreted in accordance with, the laws of the State of Texas without giving effect to any law or rule that would cause the laws of any jurisdiction other than the State of Texas to be applied. All of Indemnitors' duties and obligations under this Agreement are clue, payable, and performable in Houston, Harris County, Texas. Company shall be entitled to enforce this Agreement by an action brought in any locale where Company maintains an office, where Indemnitors may reside or maintain an office, or where any of the bond obligations were to be performed. if any provision or provisions, or portion thereof, of this Agreement shall be void or unenforceable under the laws of any jurisdiction governing its construction, this Agreement shall not be void or vitiated thereby, but shall be construed and enforced with the same effect as though s uch provision or provisions, or portion thereof, were omitted and the other provisions shall remain in full force and ffect 21. This General Agreement of Indemnity applies to bonds heretofore or hereafter written by or at the request of Indemnitor, or any of them, by Company as surety, co- surety, or reinsurer on behalf of the indemnftors, or any of them, and any and all of their wholly or partially owned subsidiary companies, subsidiaries of subsidiaries, proprietorships, divisions or affiliates. partnerships, joint ventures or co-ventures in which any of the undersigned lndemnitors, their wholly or partially owned subsidiary companies, subsidiaries of subsidiaries, divisions, proprietorships, or affiliates, have any interest or participation whether open or silent; jointly, severally, or in any combination with each other; now in existence or which may hereafter be created or acquired by lndemnitors or any of them. 22. The Indemnitors hereby warrant and represent. the accuraoy of all financial statements submitted or to be submitted to the Company, and covenant and agree that the assets described therein are dedicated to assigned, and imposed with a trust for the purpose of this Agreement and for the benefit of the Company. General Agreement of Indemnity 11 -08 Page 5 of 5 L d l l6ti ON 031hNS AcI9 O lOZ 'ZZ 'Nb� 23 Except where prohibited by law, lndemnitors hereby waive all right to claim any property, Including homestead, as exempt from levy, execution, sale or other legal process secured or requested by Surety under the laws of the United States or of any state or province or of any other government. 24. Indemnitors declare that all monies due and to become due under any contract or contracts covered by bonds issued by the Company are trust funds, whether in the possession of the lndemnitors or otherwise, for the benefit of and for payment of all obligations for which the Company would be liable under any of said bonds. Said trust also inures to the benefit of the Company for any liability or loss it may have or sustain under arty of said bonds. and this Agreement shall constitute notice of such trust. 25. THE UNDERSIGNED INDEMNITORS REPRESENT TO THE COMPANY THAT THEY HAVE CAREFULLY READ THIS ENTIRE AGREEMENT CONSISTING OF THIS PAGE, THE PRECEDING PAGES, AND ANY PAGES WHICH FOLLOW, AND THAT THERE ARE NO OTHER PROMISES, AGREEMENTS OR UNDERSTANDINGS WHICH IN ANY WAY LESSEN OR MODIFY THE OBLIGATIONS 'SET FORTH HEREIN. THE UNDERSIGNED INDEMNITORS RECOGNIZE THAT THE ABOVE AND FOREGOING AGREEMENTS INCLUDE BROAD RIGHTS IN FAVOR OF COMPANY AND LIMITATIONS ON THE LIABILITY OF COMPANY AND ITS AGENTS FOR CERTAIN ACTS AND OMISSIONS, INCLUDING NEGLIGENT ACTS AND OMISSIONS. THE EFFECTIVE DATE OF THIS AGREEMENT OF INDEMNITY SHALL BE THE DAY AND YEAR FIRST ABOVE WRITTEN, REGARDLESS OF THE DATE OR DATES ON WHICH THE UNDERSIGNED MAY EXECUTE THIS AGREEMENT AND REGARDLESS OF WHETHER BONDS WERE ISSUED BY THE COMPANY BEFORE OR AFTER THE EXECUTION OR EFFECTIVE BATE OF THIS AGREEMENT. THE COMPANY'S ACCEPTANCE OF THIS AGREEMENT SHALL BE PRESUMED AND 13 DEEMED EFFECTIVE BY ITS RECEIPT OF THIS AGREEMENT, ITS RELIANCE HEREON, OR BY ITS EXECUTION OF ANY BOND OR UNDERTAKING FOR INDEMNITORS OR ANY OF THEM. Corporation or Partnership Corporation or Partnership Name: Procon Pavl : and :.- ction, Inc. Name; Big D Concrete, Inc. . BY: Al ..� Sy: C�v�Ea Signature Si re Printed Name & Title: Printed Name & Title: Majed Khalaf, President Muamar Anani, President 10361 Brckham Rd., Dallas, Texas 75220 10363 Bickham Rd., Dallas, Texas 75220 Street or P.Q. Box City State/Zip Street or P.O. Box City BtateiZlp Individual Individual Name: Majed Khalaf, Indivi uall Name: Manal Khalaf, IndmduaI y By: By: A44 Signature Signature 426 Stone Canyon, Sunnyvale, Texas 75184 426 Stone Canyon, Sunnyvale, Texas 75184 Street or P.O. Box City State/Zip Street or P.O. Box City StatelZlp Individual Individual Name: Plana Alsarabl, Individually Name: mad Aibelbaisi, Idlvidual , l K/ By: .if, •..LL �� • 6. . �' 1 !r B y: e3c g Signs re Signe re 25 Lochle Ri chardson, Texas 75082 25 Lochleven, Richardson, Texas 75082 Street or P.O. Box City State/Zip Street or P.Q. Box City State/Zip General Agreement of Indemnity Rev 11 -08 Page 6 of 9 8 'd l l6ti 'ON 0313E1S WdW E O IOZ 'll mr Individual Individual Name: Muamar Mani, Individually (dame; Flanadi M- Sharif Mani, Individually BY l fay: �.U, d � - - y Signs re � � Signature 2217 All Saints Lane, Piano, Texas 75025 2217 All Saints Lane, Plano, Texas 75025 _ Street or P.O. Box City ' State/Zip Street or P.O. Box City State/Zip Individual Name: Masoud Khayyat, Individual By s . - Signature 10201 Deermont Trial, Dallas, Texas 75243 Street or P.O, Box City State/Zip Corporate Notary Acknowledgment State of Texas § County of batlAS g On this 2- day of /hull 2009, before me personally appeared Ma ed Khalaf personalty known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same In his/her authorized capacity as the President of Procon Paving and Construction, Inc. , said corporation, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and- official seal-. ` STEVEN J. aNECKEft ' Notary �� NOTARY PI IBIJC X y STATE OF TEXAS Commission Ex I nI 2SIAL MY CONIM. EXP. es- S0-2009 Corporate Notary Acknowledgment state of Texas § County of baks § On this 40'-- day of M 2009, before me personally appeared Muamar Ananl, President personally known to me ( or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same In his/her authorized capacity as the President of Bpi D Concrete, Inc. , said corporation, and that by his/her signature an the instrument the person, or the entity upon behat? of which the person acted, executed the Instrument. WITNESS my hand and official seal . • - < STEVEN J. MNECKER ALA-- e! I NOTARY' P,ug Notary Public • ' , r 9TA'rg o - r xAS Commission f, Expires p� General. _ .; : ' ndel i ' g. IXr90"a0 Paps 7 of 9 6 'd l l6ti 'ON a31hNS WdCti OIOl 'ZZ 'Nb'P Individual Notary Acknowledgment State of Texas § County of ta16s 9 2.4* On this J3.Y ■ 0 day of M Ara% 2009, before me personally appeared Ma'ed and Manal Khalaf personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within and foregoing instrument, and acknowledged to me that he/she/they executed the same In his/ her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument, the person(s) executed the instrument. '7r>. tirfVBNkl:it ' - t Notary Public '+ .05.90.2009 Commission Expi iuYCOMM:� Individual Notary Acknowledgment State of Texas § County of a, ti § On this AV day of Mar 2009 , before me personally appeared Hana Alsarabl personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose names) is /are subscribed to the within and foregoing Instrument, and acknowledged to me that he/she/they executed the same in his/ her/their authorized capacity(ies), and that by his /her /their signature(s) on the instrument, the person(s) executed the instrument WITNESS my hand and official seal -,'r OMEN J. ZINECKER • :!V NarfrnY pueuc Notary Public re / OrA1 r TExA9 • Commission Expl :s 14A► LN. EXP. d5 342009 Individual Notary Acknowledgment State of Texas § County of T On this x1 day of Mar c1, 2009, before me personalty appeared E •dAlbelbaisi personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within and foregoing Instrument, and acknowledged to me that he/she/they executed the same in his/ her/their authorized eapaoity(les), and that by his/her /their signature(s) on the Instrument, the person(s) executed the instrument WITNESS. my. hand and official seal SrEYEN.rZ2tl®i Notary ublic AIDTARY Commission E s 1 I STATEoFTE AS t: IIWOoMM. EIcP. 05-8041(19 • General Agreement of Indemnity Re 11.08 Page 8 of 9 Ol d l[619 'ON D313ENS WdLti Ol OZ '66 'Nb'r Individual Notary Acknowledgment State of Texas § § County of lia1 laws § On this 2i• day of p(iraN 2009, before me personally appeared Moamar and Hanadi Al- Sharif Ananl personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) Is/are subscribed to the within and foregoing instrument, and acknowledged to me that he/she /they executed the same in hlsl herlthelr authorized capacity(Ies), and that by his/her/their slgnature(s) on the instrument the person(s) executed the instrument w WITNESS my hand :official seat L k4 't rr , Not IC Notary Public `� 1 SIA�EOF Commission .Ir - COWL EXP. O5- 90,20 - Individual Notary Acknowledgment State of Texas § County of _Wja.$ § On this p.4- day of Marc, 2009, before me personally appeared Masoud Khayyat personally known to me (or proved b me on the basis of satisfactory evidence) to be the person(s) whose name(s) Is/are subscribed to the within and foregoing instrument, and acknowledged to me that he /she/they executed the same In his/ her/their authorized capacity(ies), and that by his/her /their slgnature(s) an the instrument, the person(s) executed the Instrument WITNESS my hand and -official seal. • / STEVEN J. aNECKER 0 t NOTAHYPuEuc Nofary Pub k: j77,-7, STATE OrTExns Commission Expire - �, MY COMM. EXP. 06.ao•2009 General Agreement of Indemnity Rev 11 -0s Page 9 of 9 l l d l[617 'ON 0313FNS WdLti alai zz 'Nb'r