KNOW ALL MEN BY THESE PRESENT, that we New Jersey-American Water Company, Inc., as Principal (hereinafter the “Bidder”) and Travelers Casualty and Surety Company of America, a Corporation, duly organized under the laws of the State of Connecticut, as Surety, are held and firmly bound unto the Borough of Somerville (the “Borough”), as Obligee, in the sum of Twenty Thousand Dollars ($20,000) lawful money of the United States of America to be paid to the Borough, its successors or assigns, for which payment, well and truly to be made, we bind ourselves, our successors and assigns, jointly and severally, firmly by these present; and

WHEREAS, the above-named Bidder has submitted or is about to submit to the Borough a Bid to enter into an Agreement of Sale to purchase the Borough's Sewer System as described in the Request for Bids, dated March 8, 2021 (the “RFB”), issued by the Borough and covered by the Bid submitted by the Bidder in response thereto, which Bid is made a part hereof.

NOW, THEREFORE, the Surety hereby understands that if the above-referenced Bid is accepted by the Borough, then the Bidder will in good faith enter into negotiation of a final Agreement of Sale in writing and give bond with surety acceptable to the Borough for the purchase of the Borough's Sewer System within the time specified in the RFB, or any extension thereof agreed to in writing by the Borough. Surety hereby agrees that if the Bidder shall fail to do so, Surety will pay to the Borough, as liquidated damages, the full amount of this Bond within 30 calendar days after receipt by Bidder and Surety of written notice of such failure from the Borough, which notice shall be given with reasonable promptness, identifying this Bond and including a statement of the amount due. Upon execution of the Agreement of Sale, this Bond shall thereafter become null and void, otherwise to remain in full force and effect unless terminated as hereinafter provided.

It is agreed that this Bond shall become effective on the date the Bid is submitted and will continue in full force and effect for one hundred eighty (180) days from such date of submittal (unless extended) or until terminated as hereinafter provided.

If the Bid is not accepted within such 180-day time period, or any extension thereof agreed to in writing by the Borough and the Bidder, then after written notice by the Borough of such non-acceptance, this Bond may be terminated by the Surety or Bidder upon written notice to each other and to the Borough by registered mail at least 10 days prior to the termination date specified in such notice. Upon the giving of such notice, the Surety shall be discharged from all liability under this Bond for any act or omission of the Bidder occurring after the date of the notice of non-acceptance.

Any suit or action under this Bond shall be commenced only in a court of competent jurisdiction located in the State of New Jersey.

All capitalized terms used herein and not otherwise defined shall have the meaning set forth in the RFB.

IN WITNESS WHEREOF, the Surety and Bidder, intending to be legally bound hereby, do