02-0618_MLADEN BUNTICH CONSTRUCTION CO., INC._Escrow AgreementESCROW AGREEMENT FOR
SECURITY DEPOSITS IN LIEU OF RETENTION
This Escrow Agreement is made and entered into as of the 18th day of June, 2002, by
and between the Capistrano Valley Water District whose address is 32400 Paseo Adelanto,
San Juan Canistrano, CA 92675 (hereinafter called "Owner"), Mladen Buntieb Construction
Co., Inc. whose address is P.O. Box 4400, 8823 Fenwick Street, Sunland, California 91041-4400
(hereinafter called "Contractor") and United California Bank whose address is 9000 East
Valley Boulevard, Rosemead, California 91770 (hereinafter called 'Escrow Agent").
For the consideration hereinafter set forth, the Owner, Contractor, and Escrow Agent
agree as follows:
(1) Pursuant to Section 22300 of the Public Contract Code of the State of California,
Contractor has the option to deposit securities with Escrow Agent as a substitute for retention
earnings required to be withheld by Owner pursuant to the Construction Contract entered into
between the Owner and Contractor for the construction of Plans and Specifications entitled SC -
04 South Connectors I and II Pipeline Project in the amount of $4,501,290.00 dated March 19,
2002 (hereinafter referred to as the "Contract'). Alternatively, on written request of the
Contractor, the Owner shall make payments of the retention earnings directly to Escrow Agent.
When the Contractor deposits the securities as a substitute for Contract earnings, the Escrow
Agent shall notify the Owner within 10 days of the deposit. The market value of the securities at
the time of the substitution shall be at least equal to the cash amount then required to be withheld
as retention under the terms of the Contract between the Owner and Contractor. Securities shall
be held in the name of the Capistrano Valley Water District, and shall designate the Contractor as
the beneficial owner.
(2) The owner shall make progress payments to the Contractor for those funds which
otherwise would be withheld from progress payments pursuant to the Contract provisions,
provided that the Escrow Agent holds securities in the form and amount specified above.
(3) When the Owner makes payment of retentions earned directly to the Escrow Agent,
the Escrow Agent shall hold them for the benefit of the Contractor until the time that the escrow
created under this contract is terminated. The Contractor may direct the investment of the
payments into securities. All terms and conditions of this agreement and the rights and
responsibilities of the parties shall be equally applicable and binding when the Owner pays the
Escrow Agent directly.
(4) Contractor shall be responsible for paying all fees for the expenses incurred by
Escrow Agent in administering the Escrow Account and all expenses of the Owner. These
expenses and payment terms shall be determined by the Owner, Contractor and Escrow Agent.
(5) The interest earned on the securities or the money market accounts held in escrow
and all interest earned on that interest shall be for the sole account of Contractor and shall be
subject to withdrawal by Contractor at any time and from time to time without notice to the
Owner.
(6) Contractor shall have the right to withdraw all or any part of the principal in the
Escrow Account only by written notice to Escrow Agent accompanied by written authorization
from Owner to the Escrow Agent that Owner consents to the withdrawal of the amount sought to
be withdrawn by Contractor.
(7) The Owner shall have a right to draw upon the securities in the event of default by
the Contractor. Upon seven days' written notice to the Escrow Agent from the owner of the
default, the Escrow Agent shall immediately convert the securities to cash and shall distribute the
cash as instructed by the Owner.
(8) Upon receipt of written notification from the Owner certifying that the Contract is
final and complete, and that the Contractor has complied with all requirements and procedures
applicable to the Contract, Escrow Agent shall release to Contractor all securities and interest on
deposit less escrow fees and charges of the Escrow Account. The escrow shall be closed
immediately upon disbursement of all moneys and securities on deposit and payments of fees
and charges.
(9) Escrow Agent shall rely on the written notification from the Owner and the
Contractor pursuant to Sections (5) and (8), inclusive, of this agreement and the Owner and
Contractor shall hold Escrow Agent harmless from Escrow Agent's release and disbursement of
the securities and interest as set forth above.
(10) The names of the persons who are authorized to give written notice or to receive
written notice on behalf of the Owner and on behalf of Contractor in connection with the
foregoing, and exemplars of their respective signatures are as follows:
On behalf of Owner:
Title
Name
Capistrano Valley Water District
32400 Paseo Adelanto
San Juan Canistrano, CA 92675
Address
Second Signature on behalf of Owner:
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Title
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Capistrano Valley Water District
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Address
On behalf of Contractor:
Vice President
Title
P.O. Box 4400
8823 Fenwick St.
Sunland California 91041-4400
Address
On behalf of Escrow Agent:
Title
FM
Signature
United California Bank
9000 East Valley
Rosemead, CA
Address
Address
At the time the Escrow Account is opened, the Owner and Contractor shall deliver to the
Escrow Agent a fully executed counterpart of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement by their proper officers
first set forth above.
Owner
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Name
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Title
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Mladen Buntich Jr.
Name
Vice President
Title
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