EXHIBIT K FORM OF WARRANTY BOND - CRRMA

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EXHIBIT KFORM OF WARRANTY BONDBond No. _________KNOW ALL PERSONS BY THESE PRESENTS, that the _________________, a__________, as “Principal” and ___________________, as “Surety” or as “Co-Sureties”, each acorporation duly organized under the laws of the State indicated on the attached page, having itsprincipal place of business at the address listed on the attached page, in the State indicated on theattached page, and authorized as a surety in the State of Texas, are hereby jointly and severallyheld and firmly bound unto the CAMINO REAL REGIONAL MOBILITY AUTHORITY, apolitical subdivision of the State of Texas, as “Obligee”, in the sum of $20,000,000 (the “BondedSum”), for the payment whereof Principal and Surety (or Co-Sureties), bind themselves, andtheir heirs, executors, administrators, representatives, successors, and assigns, jointly andseverally, firmly by these presents.WHEREAS, Obligee, has awarded to Principal, a Design/Build ComprehensiveDevelopment Agreement for the Americas Interchange Project, dated __________, 2010 (the“Agreement”), on the terms and conditions set forth therein; andWHEREAS, Principal is required to furnish a bond guaranteeing the faithfulperformance of its warranty obligations under Exhibit C – Technical Provisions of the ContractDocuments after Final Acceptance, including payment of claims, subcontractors, suppliers,materialmen and mechanics, as a condition to release of the Performance Bond and PaymentBond with respect to the Project by Obligee.NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCHTHAT, if Principal shall promptly and faithfully perform all of its warranty obligations under theContract Documents, as they may be amended or supplemented, including without limitation thefulfillment of all Warranties, and payment of claims, subcontractors, suppliers, materialmen andmechanics, then this obligation shall be null and void; otherwise this obligation shall remain infull force and effect, it being expressly understood and agreed that the liability of Surety for anyand all claims hereunder shall in no event exceed the Bonded Sum.The following terms and conditions shall apply with respect to this bond:1. The Contract Documents are incorporated by reference herein.2. Surety’s obligations under this Bond shall include the Principal’sobligation to pay its subcontractors, suppliers, materialmen and mechanics for warranty-relatedwork or supply.CAMINO REAL REGIONAL MOBILITY AUTHORITYAMERICAS INTERCHANGE PROJECT428094v.4 0053870/00002PAGE 1DESIGN/BUILD AGREEMENTEXHIBIT KADDENDUM NO. 2JANUARY ___, 2010
3. The guarantees contained herein shall survive the final completion of thedesign and construction called for in the Contract Documents.4. Whenever Principal shall be, and is declared by the Obligee to be, indefault with respect to its warranty obligations under the Contract Documents, provided that theObligee is not then in material default thereunder, Surety shall promptly take one of thefollowing actions with the consent of the Obligee:a. arrange for Principal to perform and complete the warrantyobligations of this Agreement;b. complete the Warranty Work in accordance with the terms andconditions of the Contract Documents then in effect, through its agents or through independentcontractors;c. obtain bids or negotiated proposals from qualified contractorsacceptable to the Obligee for a contract for performance and completion of the Warranty Work(as defined in the Agreement), through a procurement process approved by the Obligee, arrangefor a contract to be prepared for execution by the Obligee and the contractor selected with theObligee’s concurrence, to be secured with performance and payment bonds executed by aqualified surety equivalent to the bonds issued on the Agreement; ord. waive its right to perform and complete, arrange for completion, orobtain a new contractor and with reasonable promptness under the circumstances, (i) afterinvestigation, determine the amount for which it may be liable to the Obligee and, as soon aspracticable after the amount is determined, tender payment therefore to the Obligee, or (ii) denyliability in whole or in part and notify the Obligee citing reasons therefore.5. If Surety does not proceed as provided in Paragraph 5 with reasonablepromptness, Surety shall be deemed to be in default on this Bond fifteen days after receipt of anadditional written notice from the Obligee to Surety demanding that Surety perform itsobligations under this Bond, and the Obligee shall be entitled to enforce any remedy available tothe Obligee. If Surety proceeds as provided in Subparagraph 5.d, and the Obligee refuses thepayment tendered or Surety has denied liability, in whole or in part, without further notice theObligee shall be entitled to enforce any remedy available to the Obligee.6. After the Obligee has terminated the Principal’s right to complete theAgreement, and if Surety elects to act under Subparagraph 5.a, 5.b, or 5.c above, then theresponsibilities of Surety to the Obligee shall not be greater than those of the Principal under theAgreement, and the responsibilities of the Obligee to Surety shall not be greater than those of theObligee under the Agreement. To the limit of the Bonded Sum, but subject to commitment ofthe unpaid balance of the Development Price to mitigation costs and damages on the Agreement,Surety is obligated without duplication for:CAMINO REAL REGIONAL MOBILITY AUTHORITYAMERICAS INTERCHANGE PROJECT428094v.4 0053870/00002PAGE 2DESIGN/BUILD AGREEMENTEXHIBIT KADDENDUM NO. 2JANUARY ___, 2010
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EXHIBIT K FORM OF WARRANTY BOND - CRRMA

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