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NOW THEREFORE, in consideration of the issuance of Bonds, whether past, present or future, by the Surety or procured by the Surety for or
on behalf of the undersigned or of the Surety refraining from cancelling such Bonds and of the sum of Two Dollars and other good and valuable
consideration paid by the Surety to each of the undersigned (the receipt and sufficiency of which are hereby acknowledged) the undersigned
hereby jointly and severally agree as follows:
1. The present agreement applies equally to Bonds issued on behalf of the undersigned or any employee or agent of the undersigned.
2. The undersigned undertake to indemnify the Surety in full for any loss or damages that it may suffer arising from the issue of one or several
Bonds, or arising from a decision of the Surety not to issue any Bond, or arising from any default by the undersigned under the present agreement.
The present undertaking includes, without limitation, the obligation of the undersigned to reimburse to the Surety all sums which it might be called
upon to pay:
a) as a result of a judgment, arbitration award or settlement;
b) as damages of any nature, including punitive and exemplary damages, as the case may be;
c) in respect of any claim, liability or loss;
d) as expenditure, costs or fees that it may incur, including the cost of internal or external adjusters and consultants;
e) in satisfaction of all legal fees and disbursements incurred by the Surety and legal fees and disbursements of claimants’ counsel;
f) as administration costs related to claims under Bonds and under this agreement
3. The undersigned undertake to pay to the Surety:
a) the initial premium for the issue of any Bond, in conformity with the Surety's tariff in force, or such other tariff as may be agreed
upon with the undersigned; and
b) thereafter, any additional or other premium, in conformity with the Surety's tariff in force or such other tariff as may be agreed
upon with the undersigned until such time as the Surety receives proof to its satisfaction, confirming its complete release from
all Bonds issued by it, and from the renewal or extension of such Bonds.
4. In order to permit the Surety to meet its obligations under the Bonds, the undersigned undertake to advance to the Surety upon demand, funds
or satisfactory guarantees sufficient to allow the Surety to perform any or all of its obligations under the Bonds, which could be subject to
indemnification under the terms of the present agreement, even before any payment has been made by the Surety to a third party. Without limiting
the generality of the foregoing, the undersigned undertake to advance funds or furnish guarantees, as soon as the Surety establishes or increases
a reserve with respect to a claim or a situation relating to any Bonds, up to the amount of such reserve which will be established by the Surety in its
5. The undersigned acknowledge that the Surety will have the right, in its sole and entire discretion, to decide whether to pay, settle or contest
any claim under a Bond without any obligation to consult or advise the undersigned in advance of so doing. The undersigned acknowledge
their obligation to indemnify the Surety in virtue of the present agreement, upon presentation by the Surety of a release or a copy of a cheque
or any other proof of payment, which will be deemed to be complete proof of the amount paid and of the Surety's right to make such payment
as a result of the issue of the Bonds and, consequently, its right to demand reimbursement from the undersigned under the terms of the present
6. The undersigned hereby renounce the benefits of division and discussion.
7. The present agreement shall extend to and be binding upon the heirs, executors, administrators, successors and assigns of the undersigned.
8. All of the terms and conditions of the present agreement are for the benefit of:
a) any predecessors or successors or assigns of the Surety, including as a result of mergers, name changes, acquisitions of portfolios, or
b) any surety, joint or several, any re-insurance company and any other surety procured by the Surety upon the request of the
to issue a Bond or Bonds, whether or not such Bond or Bonds are issued by the Surety or whether or not the surety retains any
interest in any such Bond or Bonds.
9. The rights of the Surety by virtue of the present agreement are in addition to any rights which the Surety may have by law or otherwise.
10. The undersigned acknowledge and declare that:
a) before signing, they have obtained a copy of the present agreement and that they have had sufficient time to study its terms and
b) they have read and understood all of the provisions of the present agreement; and
c) they have been given the opportunity of asking for appropriate explanations or clarifications on the nature and extent of the provisions
of the present agreement; and
d) they have been given the opportunity to consult a legal or other advisor and, if they deemed it necessary, they have in fact consulted
11. Privacy Consent – Please note that without this consent, the Surety will be unable to consider your application.
The undersigned acknowledge that the evaluation of any application for products of the Surety will involve the collection, use and disclosure of
personal information, including the information contained in this application and other sources gathered through legal means.
Such collection, use and disclosure of personal information is for the purposes of underwriting bonds and policies, as well as bond or policy
management, which shall include conducting initial and on-going credit investigations, as well as Surety activities associated with all
extensions, renewals, substitutions and modifications of the bonds or policies, and claims administration. In the ordinary course of the Surety’s
business, personal information may be disclosed to reinsurers, legal advisors, credit bureaus, other financial institutions, regulatory bodies and
any third party deemed necessary by the Surety. In the event information about other individuals (e.g. family members, employees,
shareholders) is provided or collected from other sources, the undersigned represent and warrant that those persons have consented, to the
extent required by law, to the collection, use and disclosure of their personal information for the afore-mentioned purposes.