MEMORANDUM OF UNDERSTANDING
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I
,
August 26, 1976
Engineer ed Recycling Systems, Inc.
2802 East Quail Hollow Road
Clearwater, Florida
and
City of Clearwater
City Hall
P. O. Box 4748
Clearwater. Florida 33518
This will serve as a memorandum of understanding between Engineered
Recycling Systems, Inc. (hereinafter referred to as "Contractor") and
the City of Clearwater, Florida (hereinafter referred to as the "City") to
supplement and clarify the provisions of the main agreement between
the parties made a part hereof by reference, said agreement pertaining
to the management of the Northeast Sewerage Spray Irrigation Field.
It is understood and agreed as follows:
(1 )
(2)
(3)
The Contractor shall provide a performance bond in the
amount of $10,000.00 in a form acceptable to the City.
Said Bond shall be renewable on an annual basis for the
four year period covered by the main contract between
the parties. Liability on the part of the Contractor shall
be limited to the aforesaid principal amount of said per-
formance bond. Said Contractor shall, not less than
sixty (60) days prior to the expiration of each annual
bond, provide evidence to the City of renewal of same
for ,the ensuing one year period.
The liability of the Contractor to the City for payment
of the 2% of annual gross sales under said agreement
between the parties shall not be guaranteed by said per-
formance bond for any amount in excess of $10,000.00,
the principal amount of said bond. In other words, total
liability of the underwriter upon said bond shall be limited
to the amount of $10, 000. 00 for performance of all cove-
nants of the Contractor, including the covenant for pay-
ment of said 2% fee.
If said bond is cancelled or is not renewed prior to the
- expiration of each annual period, the -City shall have the
ri~~t to immediately cancel said contr7~'
~9tNEERE
By _~~()jJ _' ________
AttOrney-nd Agent
Attorney