GUARANTEE IN LIEU OF BOND
THIS AGREEMENT (“Agreement”) is made this _______ day of ________, 200__ between Guarantor,
and
(for the purpose of this Agreement, the terms “Guarantor”, “Municipality”, and “Company” have the meanings ascribed to them below).
WHEREAS, the
has accepted a “
” (as defined below) with
, relating to Company’s
(“System”), which Franchise is hereby specifically referred to and incorporated herein, and made a part hereof; and
WHEREAS, __________________________________, a(n) ___________ corporation (“Guarantor”) is the indirect parent
of the Company and has a substantial interest in the System and the conduct of the Company in complying with the
, and any and all amendments thereof and any agreements related thereto; and
WHEREAS, § 806.05(w) of the
requires the
, as principal, to furnish bond or bonds issued to cover the faithful performance of certain of the Company’s obligations under the Franchise.
NOW THEREFORE, Guarantor hereby unconditionally guarantees the due and punctual performance of any and all obligations of
contained in § 806.05(w) of the
.
shall give written notice to Guarantor of: (a) any defaults of
in the performance of any such covenants and agreements; and (b) any presentment, demand, protest or notice of any kind which relates to Company’s performance of the terms and conditions set forth in the
.
This Agreement, unless terminated, substituted or canceled as provided herein, shall remain in full force and effect for the duration of the term of the
, or as expressly provided otherwise in the Franchise.
Upon substitution of another Guarantor reasonably satisfactory to
, this Agreement may be terminated, substituted or canceled upon thirty (30) days’ prior written notice from Guarantor to Municipality and the
.
Such termination shall not affect liability incurred or accrued under this Agreement prior to the
of such termination or cancellation.
Any notice given pursuant to this Agreement are to be given by certified mail and shall be addressed to the Guarantor and
at __________________ and to
at __________________.
No claim, suit or action under this Agreement by reason of any default of the
shall be brought against Guarantor unless asserted or commenced within six (6) months after the
of such termination or cancellation of this Agreement.
IN WITNESS WHEREOF, the Guarantor,
and
have set their hands and seals on the _______ day of ___________ , 200__.
DEFINITIONS
(The following terms have meanings ascribed to them below)
: ___________________________
: ___________________________
: ___________________________
GUARANTOR:
___________________________
By:________________________
Its:________________________
:
___________________________
By:________________________
Its:________________________
:
By:________________________
Its: Mayor