RIDGE VIEW COMMONS - CONSTRUCTION LOAN

Bond No. 5516871 CONTRACT BOND — PERFORMANCE CALIFORNIA — PRIVATE WORK THIS BOND IS NOT A PAYMENT BOND AS DEFINED IN SECTION 3096 OF THE CIVIL CODE AND PROTECTS ONLY THE OBLIGEE NAMED HEREIN KNOW ALL BY THESE PRESENTS, That BOGARD CONSTRUCTION INC., 350 Coral Street, Santa Cruz, CA 95060 as Principal, and the SAFECO INSURANCE COMPANY OP AMERICA. a Corporation organized and existing under the laws of the State of Washington and authorized to transact surety business in the Stale of California, as Surety, are held and firmly bound unto EDEN HOUSING, INC., 1035 "B" Street, Hayward, CA _94541 as Obligee, in the sum of Eleven mil lion three hundred forty thousand & no/ 100 Dollars($ $11,340,000. ) for the payment whereof, well and truly to be made, said Principal and Surety bind themselves, their heirs, administrators, successors and assigns, jointly and severally. firefly by these presents. THE CONDITION OF THE FOREGOING OBLIGATION IS SUClI, That WHEREAS, the above- bounden Principal has entered into a Contract dated June 27 1988 For Construction of RIDGE VIEW COMMONS, Pleasanton, CA a copy of which Contract is or may be attached hereto, and is hereby referred to. NOW, THEREFORE, if the Principal shall faithfully perform the work contracted to be performed under said Contract, then this obligation shall be void; otherwise to remain in lull force and effect. SUBJECT, HOWEVER. TO THE FOLLOWING CONDITIONS: First: That if a Payment Bond as defined in Section 3096 of the Civil Code of the State of California is executed in connection with this bond, no action shall be brought under this bond by reason of Principal's failure to comply with any provisions of the Contract for the pay- ment of any and all persons who may perform labor upon, or bestow skill or other necessary services on, or furnish materials or lease equip- ment 10 be used or consumed in, or furnish appliances, teams, or power contributing to the work of improvement described in the Contract, whether or not such person or persons shall have complied with the requirements of 'title 15, Works of Improvement, of the Civil Code of the State of California so as to perfect a valid claim of lien against Obligee's property or a valid claim against said Payment Bond. Second: That in the event of any default on the part of the Principal. written notice. thereof shall be given to the Surety as promptly as possible, and in any event within ten (10) days after such default shall have become known to the Obligee or to any representative of the Obligee authorized to supervise the performance of said contract. It the Principal shall abandon said contract or be compelled by the Obligee to cease operations thereunder, the Surety ,shall have the right to proceed or procure others to proceed with the performance of such contract, and all reserves, deferred payments and other moneys provided by said contract to be paid to the Principal shall be paid to the Surety at the same times and under the same conditions as by the terms of said contract such moneys would have been paid to the Principal had the contract been performed by the Principal, and the Surety shall be entitled thereto in preference to any assignee of the SAFECO 1 54955 SAFECO INSURANCE COMPANY OF AMERICA GENERAL INSURANCE COMPANY OF AMERICA FIRST NATIONAL INSURANCE COMPANY OF AMERICA HOME OFFICE: SAFECO PLAZA SEATTLE, WASHINGTON 98185 S -887 R4 10/82 PRINTED IN U.S.A.