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PK15-194 - Original - Riverbend Golf Complex Well Rehabilitation Agreement - Contract - 5/20/15
I Reco.rds M e me KENT Document ,.. WASHINGTON CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to City Clerks Office. All portions are to be completed. If you have questions, please contact City Clerk's Office. Vendor Name: Hokkaido Drilling, Inc. Vendor Number: 57797 JD Edwards Number Contract Number: This is assigned by City Clerk's Office Project. Name: Riverbend Golf Complex Well Rehabilitation Description: ❑ Interlocal Agreement ❑ Change Order ❑ Amendment ® Contract ® Other: Procurement Policy Waiver Contract Effective Date: 5/20/15 Termination-Date: 8/21/15 Contract Renewal Notice (Days): 0 Number of days required_notice for termination or renewal or amendment Contract Manager: Pete Petersen Department: Riverbend GC (Also in Parks Planning & Dev. files) Contract Amount: ,$33,726`00 Approval Authority: ❑ Department Director EMayor ' ❑City Council Detail: (i.e. address, location, parcel `number, tax id, etc.): Refurbishing & rehabilitation of irrigation source well at Riverbend; this contractor drilled the original well in 1987-88. Project overseen by engineering firm Robinson Noble. Division Contract #PPD15-11/Golf adccW10877 8 14 • KEN T W A S H I N G T O.N - - PUBLIC WORKS AGREEMENT between City of Kent and Hokkaido Drilling, Inc. THIS AGREEMENT is made by and between the City of Kent, a Washington municipal corporation (hereinafter the "City"), and Hokkaido Drilling, Inc. organized under the laws of the State of Washington, located and doing business at 2451`1 104t" Avenue Court E, Graham, WA` 98338; (253) 847-3579 (hereinafter the "Contractor"). AGREEMENT The parties agree as follows: I. DESCRIPTION OF WORK. Contractor shall perform the following services for the City, in accordance with the following described plans and/or specifications: As described in contractor's,quote, dated May 8, 2015 and attached as Exhibit A: Configure existing wellhead to install pump and conduct preliminary operational test, rig for and perform surge-and-bail development (well drilling), monitor sand and grained material produced during development, re-install pump and conduct second test, and configure wellhead back to original condition or equivalent. Contractor further represents that the services furnished under this Agreement will be performed in accordance with generally accepted professional practices within the Puget Sound . region in effect at the time such services are performed. II. TIME OF COMPLETION. The parties agree that work will begin on the tasks described in Section I above immediately upon execution of this Agreement. Upon the effective date of this Agreement the Contractor shall complete the work described in Section I within 90 days of the latest signature date on page 8 of this agreement. III. COMPENSATION. The City shall pay the Contractor a total amount not to exceed $33,72600, including any applicable Washington State Sales Tax, for the work and services contemplated in this Agreement. The City shall pay the Contractor fifty percent (50%) of the Contract amount upon completion and acceptance of the work by the City, or at such earlier .time as the City may determine is appropriate. The City will pay the remaining Contract amount upon fulfillment of the conditions'listed below and throughout this Agreement. A. No Payment and Performance Bond. Because this contract, including applicable sales tax, is less than $3.5,000, and pursuant to Chapter 39.08 PUBLIC WORKS AGREEMENT -: 1 (Over$1OK, under$35K, and No Performance Bond) RCW, the Contractor, in lieu of providing the City a payment and performance bond, has elected to have the City retain the final fifty percent (50%) of the Contract amount for a period of'thirty (30) days after the date of final acceptance, or until receipt of all necessary releases from the State Department of Revenue, the State Department of Labor & Industries, and the State Employment Security Department, and until settlement of any liens filed under Chapter 60.28 RCW, whichever is later. B. Defective or Unauthorized Work. The City reserves its right to withhold payment from Contractor for any defective or unauthorized work. Defective or unauthorized work includes, without limitation: work and materials that do not conform to the requirements of this Agreement; and extra work and materials' furnished without the City's written approval. If Contractor is Unable, for any reason, to satisfactorily complete any portion of the work, the City may complete the work by contract or otherwise, and Contractor shall be liable to the City for any additional costs 'incurred by the City. "Additional costs" shall mean all reasonable 'costs, including legal costs and attorney fees, ,incurred by the City beyond the maximum Contract price specified above. The City further reserves its right to deduct the cost to complete the Contract work, including any Additional Costs, from any and all amounts due or to become due the Contractor. C. Final Payment: Waiver of Claims. THE CONTRACTOR'S ACCEPTANCE OF FINAL PAYMENT (EXCLUDING WITHHELD RETAINAGE) SHALL CONSTITUTE A WAIVER OF CONTRACTOR'S CLAIMS, EXCEPT THOSE PREVIOUSLY' AND PROPERLY MADE AND 'IDENTIFIED BY CONTRACTOR AS UNSETTLED AT THE TIME FINAL PAYMENT IS MADE AND ACCEPTED. IV. INDEPENDENT CONTRACTOR. The parties intend that an Independent Contractor-Employer; Relationship will be created ,by this Agreement. By their execution of this Agreement, and in accordance with Ch. 51.08 RCW, the parties make the following representations:' A. The Contractor has the ability to control and direct the performance and details of its :work, the City being interested' only in the results obtained under this Agreement: B. The Contractor maintains and pays for its own place of business from which Contractor's services under this Agreement will be performed. C. The Contractor has an established and independent business that is. eligible for a business`deduction for federal income tax purposes that existed before the City retained Contractor's services and is a service other than that furnished by the City, or the Contractor is engaged in an independently established trade occupation, profession, or business of the same nature as that involved under this Agreement. D. The Contractor is responsible for filing as they become due all necessary tax documents with appropriate federal and state agencies, including the Internal Revenue Service and the state Department of Revenue. PUBLIC WORKS AGREEMENT - 2 (Over$10K, under$35K, and No Performance Bond) E. The Contractor has registered its business and established an account with the state Department of Revenue ,and other state agencies as may be required by Contractor's business, and has obtained a Unified Business Identifier`(UBI) number from the State of Washington. `. F. The Contractor has a valid contractor registration pursuant to Ch. 18.27 RCW or an electrical contractor license pursuant to 'Ch. 19.28 RCW. G. The Contractor maintains a set of books dedicated to the expenses and earnings of its business. V. TERMINATION. The City;may terminate this Agreement for good cause. "Good cause shall include, without limitation, any one or more of the following events: A. The Contractor's refusal or failure to supply a sufficient number of properly skilled workers or proper materials for completion of the Contract work.` B. The Contractor's failure to complete the work within the time specified in this Agreement. C. The Contractor's failure to make full and prompt payment to subcontractors or for material or labor. D. The Contractor's persistent disregard of federal, state'or local laws, rules or regulations. E. The Contractor's filing for bankruptcy or becoming adjudged bankrupt. F. The Contractor's breach of any portion of this Agreement. If the City terminates this Agreement for good cause, the Contractor shall not receive any further money ;due, under this Agreement until the Contract work is completed. After termination, the City may take possession of all records .and data within the Contractor's possession pertaining to this project which may be used by the City without restriction. VI. PREVAILING WAGES. Contractor shall file a ""Statement of Intent to Pay Prevailing Wages," with the State of Washington Department of Labor & Industries prior to commencing the Contract work. Contractor shall pay prevailing wages in effect on the date the bid is accepted or executed by Contractor, and comply with Chapter-39.12 of the Revised Code of Washington, as well as any 'other applicable prevailing wage rate provisions. The latest prevailing wage rate revision 'issued by the Department of Labor and Industries is attached. VII. CHANGES. The City may issue a written change` order for any change in the Contract'work during the performance of this Agreement. If the Contractor determines, for any reason, that a change order is necessary, Contractor must submit a written change order request to the person listed in the notice provision Isection of this Agreement, section XV(D), within fourteen (14)` calendar days of the date Contractor knew or should have 'known of the facts and events giving rise to the requested change. If the City determines that the change increases or decreases the Contractor's costs or time for performance, the City will make an equitable adjustment. The City will attempt, in good faith, to reach agreement with the Contractor on all equitable adjustments. However, if the parties are unable to agree, the City will determine the equitable adjustment as it deems appropriate. The Contractor,shall proceed PUBLIC WORKS AGREEMENT -'3 (Over$1 OK, under$35K, and No Performance Bond) with the change order work upon receiving either a written change order from the City or an oral order from the City before actually receiving the written change order. If the Contractor fails to require a change order within the time specified in this paragraph, the -Contractor, waives its right to make- any claim or submit subsequent change order requests for that portion of the contract work. If the Contractor disagrees with the equitable adjustment, the Contractor must complete the change order work however, the Contractor may elect to protest the adjustment as provided in subsections A through of Section VIII Claims, below. The Contractor accepts all requirements of a change order by: (1) endorsing it, (2) writing a separate acceptance, or (3) not protesting in the way this section provides. A change order that is accepted by,Contractor as provided in this section shall constitute full payment and final settlement of all claims for contract time and for direct, indirect and consequential costs, including costs of delays related to any work, either covered or affected by the change. VIII. CLAIMS. If the Contractor disagrees with anything required by a change order, another written order, or an oral order from the City, including any direction, instruction, interpretation, or determination by.the City, the Contractor may file a claim as provided in this section. The Contractor shall give written notice to the City of all claims within fourteen (14) calendar'days of the occurrence of the events giving 'rise to the claims, or within fourteen (14) calendar days of the date the Contractor knew or, should have known of the facts or events giving rise to the claim, whichever occurs first . Any claim for damages, additional payment for any .,reason, or 'extension of time, whether under this Agreement or otherwise, shall be conclusively deemed to have been waived by the Contractor unless a timely written claim is made in strict accordance with the applicable provisions of this Agreement. At a minimum, a `Contractor's written claim shall include the information set forth in subsections A, items 1 through 5 below. FAILURE TO >PROVIDE A COMPLETE, WRITTEN NOTIFICATION OF CLAIM WITHIN THE TIME ALLOWED SHALL BE AN ABSOLUTE WAIVER OF ANY CLAIMS ARISING - IN ANY WAY FROM THE FACTS OR EVENTS SURROUNDING THAT CLAIM OR CAUSED BY THAT DELAY. A. Notice of Claim. Provide a signed written notice of claim that provides the following information: 1. The date of the Contractor's claim; 2. The nature and circumstances that caused the claim; 3. The provisions in this Agreement that support the claim; 4. The estimated dollar cost, if any, of the claimed work and how that estimate was determined; and 5. An analysis'of the progress schedule showing the schedule change or disruption if the Contractor is asserting a schedule change or disruption. B. Records. The Contractor shall keep complete records of extra costs and time incurred as a result :of the asserted events giving rise to the claim. The City shall have access to any of the Contractor's records needed for evaluating the protest. The City will evaluate all claims, provided the procedure's in this section are followed. If the City determines that a claim is valid, the City will adjust payment for work or time by an equitable adjustment. No adjustment will be made for an PUBLIC WORKS AGREEMENT - 4 (Over$1OK, under$35K, and No Performance Bond) invalid protest. C. Contractor's Duty to Complete Protested Work. In spite of any claim, the Contractor shall proceed promptly to provide the goods, materials and services required by the City under this Agreement. D. Failure to Protest Constitutes Waiver. By not protesting as this section provides, the Contractor also waives any additional entitlement and accepts from the City any Written or oral order (including directions, instructions., interpretations, and determination). E. Failure to Follow Procedures Constitutes Waiver. By failing to follow the procedures of this section, the Contractor completely waives any claims for protested work and accepts from the City any written or oral order (including directions, instructions, interpretations, and determination). IX. LIMITATION OF ACTIONS. CONTRACTOR MUST, IN ANY EVENT, FILE ANY LAWSUIT ARISING :FROM OR CONNECTED WITH THIS AGREEMENT WITHIN 120 CALENDAR DAYS FROM THE DATE THE CONTRACT WORK IS COMPLETE OR CONTRACTOR'S ABILITY TO FILE THAT CLAIM OR SUIT SHALL BE FOREVER BARRED. THIS SECTION FURTHER LIMITS ANY APPLICABLE.STATUTORY'LIMITATIONS PERIOD. X. WARRANTY. Contractor warrants that it will faithfully and satisfactorily perform all work provided under this Agreement in accordance with the provisions of this Agreement. The Contractor shall promptly correct all defects in workmanship and materials: (1) when Contractor knows or should have known of the defect, or, (2) upon Contractor's receipt of notification from the City of the existence or discovery of the defect. In the event any parts are repaired or replaced, only original replacement parts shall be used—rebuilt or used parts will not be acceptable. When defects are corrected, the warranty for that portion of the work shall extend for an additional ;year beyond the original warranty period applicable to the overall work. The Contractor shall begin to correct any defects within seven (7) calendar days of its receipt of notice from the City of the defect. If the Contractor does not accomplish the corrections within a reasonable time 'as 'determined by the City, the City, may complete the corrections and the Contractor shall pay all costs incurred by the City in order,to accomplish the correction. XI. DISCRIMINATION. In the hiring of employees for the performance of work under; this Agreement or any sub-contract, the Contractor, its sub-contractors, or any person acting on behalf of the Contractor or sub-contractor shall not, by reason of race, religion, color, sex, age, sexual orientation, national origin, or the presence of any sensory, mental, or physical 'disability, discriminate against any person who is qualified and availableto perform the work to which the employment relates. Contractor shall execute the attached City of Kent'Equal Employment Opportunity Policy Declaration, Comply- with City Administrative Policy 1.2, and upon completion of the contract work, file the attached Compliance Statement. XII. INDEMNIFICATION. Contractor shalt defend, indemnify and ,hold the City, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with 'the Contractor's performance of this Agreement, except for that portion of the injuries and damages caused by the City's negligence. PUBLIC WORKS AGREEMENT - 5 (Over,$1OK, under$35K, and No Performance Bond) The City's inspection or acceptance of any of Contractor's work when completed shall not be grounds to avoid any of these covenants of indemnification. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24 115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the City, its officers, officials, employees, agents and volunteers, the Contractor's liability _hereunder shall be only to the extent of the Contractor's'negligence. IT IS FURTHER SPECIFICALLY AND -- EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE CONTRACTOR'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER. In the event Contractor refuses tender of defense in any suit or any claim, if that tender was made pursuant to this indemnification clause, and if that refusal is subsequently determined by a court having jurisdiction (or other agreed tribunal) to have been a wrongful,`refusal on the Contractor's part, then Contractor shall pay all the City's costs for defense, including all reasonable expert witness fees and reasonable attorneys' fees, plus ;the City's legal costs and fees incurred because there Was a wrongful refusal on the Contractor's part. The provisions of this section shall survive the expiration or termination of this Agreement. XIII. INSURANCE. The Contractor shall procure and maintain for the duration of the Agreement, insurance of the types and in the amounts described in Exhibit B attached and incorporated by this reference. XIV. WORK PERFORMED AT CONTRACTOR'S RISK. Contractor shall take all necessary precautions and shall be responsible for the safety of its employees, agents, and subcontractors in the performance of the contract work and shall,utilize all protection necessary for that purpose. All work shall be done at Contractor's own risk, and Contractor shall be responsible for any Loss of or damage to materials, tools, or other articles used or held for use in connection with the work. XV. MISCELLANEOUS'PROVISIONS. A. Recyclable Materials. Pursuant to Chapter 3.80 of the-Kent City Code, the City requires its _contractors and consultants to use recycled and recyclable products` whenever practicable. A price preference may be available for any designated recycled product. B. Non-Waiver of Breach. The failure of the City to insist upon strict performance of any of the covenants and agreements contained in this Agreement, or to exercise any option conferred by this Agreement in one or more instances shall not be construed to be a waiver or relinquishment of those covenants, agreements or options, and the same shall be and `remain in full force and effect. C. Resolution of Disputes and Governing Law. This Agreement'shall be governed by and construed in accordance with the laws of the State of Washington. If the parties are unable to settle any dispute, difference or claim arising' from the parties' performance of this Agreement, the exclusive means of resolving; that dispute, difference or claim, shall only be by PUBLIC WORKS AGREEMENT - 6 (Over$1OK, under$35K, and No Performance Bond) filing suit exclusively;under the venue, rules and jurisdiction of the King County-Superior Court, King County, Washington, unless the parties agree in writing to an alternative dispute resolution process. In any claim :or lawsuit for damages arising from the parties' performance of this Agreement, each party shall pay all its legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit, including all appeals, in addition to any other recovery or award provided by law; provided, however, nothing in this_paragraph shall .be construed to limit the City's right to indemnification under Section XII of this Agreement. D. Written Notice. All.communications regarding this Agreement shall be sent to the parties at the addresses listed on the signature page of the Agreement, unless notified to the contrary. Any written notice hereunder shall become effective three (3) business days after the date of mailing by registered or certified mail, and shall be deemed sufficiently given if,sent to the addressee at the address stated in this Agreement or such other address as may be hereafter specified in writing: E. Assignment: Any assignment of this Agreement by either party without the written consent of the non-assigning party shall be void. If the non-assigning party gives its consent to any assignment, the terms of this Agreement shall continue in full force and effect and no further assignment shall be made without additional written consent. F. Modification. No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of the City and Contractor. G. Entire Agreement. The written provisions and terms of this Agreement, together with any Exhibits attached hereto,`shall supersede all prior verbal statements of any officer or other representative 'of the City, and such statements shall not be effective or be construed as entering into or forming;a part of or altering in any manner this Agreement. All of the above documents are hereby made a part of this Agreement. However, should any language in any of the Exhibits to this Agreement conflict with any language contained in this Agreement, the terms of this Agreement shall prevail. H. Compliance with Laws. The Contractor agrees to comply with all `federal,_ state, and municipal laws, rules, and regulations that are now effective or in the future become applicable to Contractor's business, equipment, and personnel engaged in operations covered by this Agreement or accruing out of the performance of those operations. I. City_ Business License Required. Prior to commencing the tasks described in Section I, Contractor agrees to provide proof of a current city of Kent business license pursuant to Chapter 5.01 of the Kent;City Code. PUBLIC WORKS AGREEMENT - 7 (Over$10K, under$35K, and No Performance Bond) s! Co.0 ter arts: Th1 A reem�nt rnaeeued �n a numzber ,of aune p $. �J y p� e ach a b s a onst�tute an `:ors. ina a d iC Qf w.,� t�vlll `to ether= can titute this one whh1c g f n 9 Agreement. 3N WITN55 the tires be ow exe+�uehs" ` r+�ernent rnnc � sha11 became ,.:- p +9 b. effec eve An the last'Bete ente�eci be OWJ C®NTRJ4CTQA: IfCI"fY �t�= KENTi B B � � Y Fslg a red (slgnaur) Print uarn rent' , Suzette Cooke Its � ' its Ma or 4. BATE; NC�fiIGES T ��SIEtyT TQ. N6TCES TQ BF SENT TOE C WTRACTOR: PXTY ff KENT� Billy A. Dadg R.D. Pete Petersen Hokkaido DrilIrng Inc. � y of Rent P.C3 Sox,;id ?2�";Fo Ir h AV+enu o.uth. Graham,'IIVA 98338 Kent1NA 98{ 32 253j 847-35?9 telephone) 253) 856 519� (t+elephane Petersen@kentw"a.gav r KentdEWAS epartrrient a ,. P 1PlanningiRiverbendrWetl Rehab-N4iiltaTdaCOMTRACT dotx i 1 s Fi t PUBLIC WORKS AGREEMENT lr?�ar i nK t�rtcl�►r 3�K and'141n Performance Bond E p p D�CLARATIoN E�UA� EN�PL�YMEN�'OPRQRTUNITY R�LICY cr�mrnt: ed to �onforrn to Federal and State kaws re�:"ardtn a ual.Q �t�tuni� tY 9 g �I pig �Y s h � 1 ontracta�s, ;st.tb Ai contractors and' su�pUers vuho perform wot�k with relation to this Ag eetnent .�a �, compl - rrvtti the re ut�t��n� of the Ct s e jai m �"oymnt o o�tunit � 9 � G p o(t: ies. he' of"cw .: � ��; - - . _.T __ f l .gin_ uestrons �_ c.ficall �denti�F the" re urement�the Ctt. .deems n.ecessa contra.eter ��abct�ntractor or su. -1 er on this � ea er. , ,,pp i:" spectf'c Agreem, nt �tr dh a to. An af�i mat�W res nse is:re .utred on ail of the a t " s ar this A ree'rne to:be val n . :. Po q f ll�w ng que t�,brts � � nt td � d b;ndtng. If an contractor subcontractor or: u l:ier r lu " rntsre :rese is th selves Huh r ` aid,to the y ,. s pp_ w� I,y >� n ern_.. g drrQctiv�s o�tlirt,es �t �Nlll 'be cbns�dered a breech of contract` ands rt �ulll be �t the Ct s detertninatidra re ,ardtn sus enston or termination fcr all or aid of the A re�rnent =The ciuestlons are;as follows. 1. "have rea the";attached Ott, of enttra i olic u ber 'a d y K � mn tve;:p ,yn ;m 3 ". 2. I�urtn: the;time of this A reernent I vtit "riot discriminate to ernployrrient on the fasts of F sex race Dior nartron � o r . � e o the r Bence o all; ser�'so erttal � h steal :a rig n, � , r p e f rY, � r p Y disabtity. ; y; 3: Durtn the.ttrrte of this A` ree': ent the.::: r me contractor will rovide �:uvrrtten statetrient to s p, all new e"m 10 .ees and subcontractors indicatn. c©rnrnitrnent as air a ua1 ,o ortuntt p Y 9 � Pp y etrtplayer� ; D.urtn. the time`of the `reetnen 'x"" the r`me contractor will activel consider htrtn and prarntJtion of women and'releme {es. 5. Before ce tarce ofi t is A t- ernent n adhere ce statetrent vutll be ned b 47e the ac p h ge , a n 9 y Prime ± antractor. that the Prime Contractor Co lied with the re utrnents as set fotth aboUa By sgnirag beloW,."'I agree to fulfill the �i�e requirerrtents referenced above. r E c For. pate: 1 F�fi� CQMPLTAiVC�I�QCU..M�NTS CITY OF KENT ADMINISTRATIVE POLICY NUMBER: 1.2 EFFECTIVE DATE: January, 1, 1998 SUBJECT: MINORITY AND WOMEN SUPERSEDES: April 1, 1996 CONTRACTORS APPROVED BY Jim White, Mayor POLICY: Equal employment opportunity requirements for the City of Kent will conform to federal and state laws. All contractors, subcontractors, consultants and suppliers of the City must`guarantee equal employment opportunity within their organization and, if holding Agreements with the City amounting to $10,000 or more within any given year`, must take the following affirmative steps 1. Provide a written .statement to all new employees and subcontractors indicating commitment as an equal opportunity employer. 2. Actively consider for promotion and advancement available minorities and women. Any contractor, subcontractor, consultant or supplier who willfully disregards the `City's nondiscrimination and equal opportunity requirements shall be considered in breach of contract and subject to suspension or termination for all or part of the Agreement. Contract Compliance Officers will be appointed by the Directors of Planning, Parks, and Public Works Departments to assume the following duties for their respective departments 1. Ensuring that contractors, subcontractors, consultants, and suppliers subject: to these regulations are familiar with the regulations and the City,s equal employment opportunity policy. 2. Monitoring to assure adherence to federal, state and local laws, policies and guidelines. I I I i E i I s j , EEO COMPLIANCE DOCUMENTS - 2 i CITY OF KENT EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE STATEMENT This`form shall be filled out AFTER COMPLETION of this project,by the Contractor awarded the Agreement. I, the undersigned, a duly represented agent ,of Company, hereby acknowledge and declare that the before-mentioned company was the prime contractor for the Agreement known as that was entered into on the - (date), ,between the firm I represent and the City of Kent. -I declare that I complied fully with all of the requirements and obligations as outlined in the City of Kent Administrative Policy 1.2 and the Declaration City of Kent Equal Employment Opportunity "Policy that was part of the before-mentioned Agreement. By: For: Title: Date: - EEO COMPLIANCE DOCUMENTS - 3 EXHIBIT A HOKKAIDO DRILLING QUOTATION for work related to REHABILITATION OF the RIVERBEND GOLF COMPLEX WELL KENT,WASHINGTON May 2015 The price quoted for mobilization/demobilization will represent full compensation for provision of the drilling rig and all ancillary equipment required to accomplish the well rehabilitation. This. item also covers the cost of bringing crew and equipment to and from:the site during the exe- cution of the work. No additional payment for travel time or equipment will be authorized. Work will performed on an hourly basis at the price offered for"rig hourly work." In the event the work becomes complicated to the point where the drilling contractor must stand down while waiting for direction from the District,for periods i,greater than four hours, the contractor will be compensated at the price offered for "rig standby time," except that disruptions of greater than one day will.result in the option to demobilize and remobilize the equipment and resume work of a later date. The exercise of the"remobilization" option by the District will be paid at the rig hourly rate offered for the actual number of ihours it takes to breakdown the rig, travel to and from to the site, and setup again and shall be done only at the direction of the Ci#y. In the event that chemicals or extra materials are required to accomplish the work, these mate- rials Will be paid for at cost plus 15%°. It will be necessary to provide a copy of the invoices for such materials with the request for payment. All prevailing wage requirements apply. I submit that I will perform the work described in thls request for the prices offered below: QUOTATION ITEM QUANTITY/UNITS UNIT PRICE ITEM COST Mobilization/demobilization LUMP SUM $7,500.00 Authorized Rig Hourly Work 80HOURS $275.00/hr $22,000.00' Authorized Standby Time 4 HOURS $200.00/hr $ 800.00 Extra materials such as PFD chemicals if needed will be paid for at the invoice price plus 15% for the purposes of budget estimation use: $ 500, TOTAL QUOTE $30,800.00 t2,'�I o2laroo WSS 7 Drilling Firm Name: Hokkaido Drillina, Inc. �33, `7 2 6-OD TO T4 L Signature'of Authorized mpany Representative: a 41110 UN T May 8,'2015 Date Printed Name: Billy.A. Dodge EXHIBIT A(Continued) ROBINSON' NOBLE May 8, 2015 Bill Dodge l Hokkaido Drilling, Inc. PO Box 100 Graham,WA 98338 Subject: Request for quotation for well rehabilitation of City of Kent Riverbend Golf Complex Well Dear Bill, The Riverbend Golf Complex of Kent, Washington requires redevelopment of their irrigation source well The well was drilled in 1987 and 1988 by Hokkaido Drilling. We have advised the Riverbend Golf Complex management that it is appropriate for your company to provide the re- development'services.We are asking that you provide prices for accomplishing the work dis- cussed below.The cost for mobilization and provision of equipment should be provided at a stated single price and the cost for the remainder of the contract at a per hour cost. For the' quote we will assume two weeks'on site (80 hours of work).The work as planned consists of a preliminary step test using the existing pump, surge-and-bail development, and a post- .development step test.The work elements are discussed in more detail below. The work will be accomplished under the direction of Robinson Noble, who will act as the Riverbend Golf Complex's (the City's) representative in the well redevelopment effort. A pre-development test will be accomplished using the existing pumping equipment. To facili- tate collection of the necessary data, Hokkaido Drilling will configure the wellhead so that water levels and discharge rates can be readily measured, if possible. This may require installation of sounding tubes and will require that the discharge at the wellhead be.channeled through an ori- fice tube with a 6-inch pipe and 3-and 4-inch orifices capability to be provided by Hokkaido. A step'test will be accomplished the first day after Hokkaido has modified the wellhead to ac- commodate measurement requirements. The test'will be accomplished with a single pumping event during which water level change is monitored by our hydrogeologist and with 6 transducer set in a 11/a-inch PVC tube.The mo nometer tube for the orifice weir will be measured to help maintain specified pumping rates. The 20-minute specific capacity will be determined for the rates used in the well's original step test following;construction in_1988. This will involve pumping at 100, 150, 200, 250, and 300 gpm for 20'minutes each, provided the well is still capable of those rates. The sand production will'be regularly observed during all pumping. After this initial testing, Hokkaido will remove the pumping equipment from the well. Once the well is available, Well Scan will run a predevelopment video scan of the well to determine the' condition of the well and to verify the condition of the well and screen. Provided no surprises are found during the video scan, Hokkaido will rig for and perform surge- and-bail development for 15 minutes per 2-foot station from the bottom to the top of the 6-inch 2105 South C Street 17625 1301"Avenue NE,Suite,102 Tacoma,Washington'98402 www.robinson-noblexom Woodinville,Washington 98072 P:253.475.771',1 1 F:253.472.5846 P:425.488.05991 F:425.488.2330 EXHIBIT A(Continued) Request for Quotation May 8, 2015 Page 2 pipe-size screen (set between 412 and 440 feet below land surface),Sand production will be measured after each station for this first pass through the screen.Thereafter, length of devel- opment, monitoring of sand, and cleaning of the 11-foot tail pipe will be based on your field progress and in consultation with the hydrogeologist. It will be advantageous to have a centrif- ugal pump on hand in the event that pumping of the well during surging onto clear the column between passes is required.Also, if the amount of fine grained material (silt and clay and fine sand) observed is significant, we may request you use an NSF-approved PFD chemical during the surging effort. If that is the case,then equipment to mix the chemicals on site and to trem- ie it into place in the screen assembly will be required, We anticipate that the surge-and-bail development will take up to six field days, but the actual duration will be determined after see- ing the response of the well to the development effort. Once we have determined that continued development is not Likely to produce additional im- provements (a judgement call of the hydrogeologist, in cooperation with you), Hokkaido will re- install the pump and a second step test will be accomplished. Provided the second test indi- Cates redevelopment has been successful, the wellhead will be configured back to its'original condition (or equivalent) and the fieldwork will be'considered completed. If the test results suggest the well redevelopment is incomplete or that new efforts are war- ranted, additional work may be considered by the Riverbend Golf Complex's managers. Your quote is to be submitted on the attached sheet at your earliest convenience and must be properly signed by a representative of the drilling firm duly authorized to commit the company to the work at the prices quoted. Provided the City chooses to perform the work,the quote and the work description provided herein will become the basis for the resultant contract with the City.There is no requirement of a performance bond for this work. This is not to be construed than the contractor will not be held'responsible for'the work performed'.This will be a prevailing wage.job through the City's small works process. The contractor must provide a certificate of liability insurance for at least$1,000,000 in damages in order to protect the City during the per- formance of the work. Thank you for your interest in providing the needed redevelopment services. Respectfully submitted; for R.D. Pete Petersen Superintendent of Golf Operations Riverbend Golf Complex attachment { EXHIBIT B INSURANCE REQUIREMENTS FOR CONSTRUCTION PROJECTS Insurance The Contractor shall procure and maintain for the duration of the Agreement, insurance against claims.,for injuries to persons-,or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees or subcontractors. A. Minimum Scope of Insurance Contractor shall obtain insurance of the types described below: 1. Commercial General Liability insurance shall be written on IS0 occurrence form CG 00 01 or its equivalent, with minimum limits of ., $3,000,000 per,occurrence and in the aggregate for,each 1 year policy period. This coverage may be any combination of primary, umbrella or excess liability coverage affording total liability limits of not less than $3,000,000 per occurrence and in the aggregate. Products and Completed Operations coverage shall be provided for a period of 3 years following Substantial Completion of the work. - The Commercial General Liability insurance shall be endorsed to provide the Aggregate per Project Endorsement ISO form CG 25 03 11 85. The City shall be named as an Additional Insured t under the Contactor,s Commercial General Liability insurance policy with respect to the work performed for the City. All endorsements adding Additional Insureds shall be issued on form CG 20 10 1i1 85 or a form deemed equivalent, providing the Additional Insureds with all policies and endorsements set forth i'n 'lthis section. 2. Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA DO 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 3. Workers' Compensation coverage as required by the'Industrial Insurance laws of the State of Washington. B. Minimum Amounts of Insurance Contractor shall maintain the following insurance limits: 1. Commercial General Liability insurance shall be written with minimum Limits of $3,000,000 per occurrence and in the aggregate for each 1 year policy period. This coverage may be any EXHIBIT B (Continued) combination,of primary, umbrella or excess liability 'coverage affording total liability limits of not less than $3,000,000 per occurrence and in the'aggregate. Products and Completed Operations coverage shall be provided for a 'period of 3 years following Substantial Completion of the work. 2. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. I, C. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability and Commercial General Liability: 1. The Contractor's insurance coverage shall be primary insurance as respect the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Contractor's insurance and shall not contribute with it. 2. The Contractor's insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. 3. The City of Kent shall be named as an additional insured on all policies (except Professional Liability) as respects work performed by or on behalf of the contractor and a copy of the endorsement naming the City as additional insured shall be attached to the Certificate of Insurance: The City reserves the right to receive-a certified copy of all required insurance policies. The Contractor's Commercial General Liability insurance shall also contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit'is brought, except with respects to the limits of the insurer's liability. D. Contractor's Insurance for Other Losses The Contractor shall assume full responsibility for all loss or damage from any cause whatsoever to any tools, Contractor's employee owned tools, machinery, equipment, or motor vehicles owned or rented by the Contractor, or the Contractor's agents, suppliers or contractors as well as to any temporary structures, scaffolding and protective fences. EXHIBIT B (Continued) E. Waiver of Subrogation The Contractor and the City waive all rights against each other any of their Subcontractors, Sub-subcontractors, agents and employees, each of the other, for damages caused by fire or other perils to the extend covered by Builders Risk insurance or other property insurance obtained pursuant to the,Insurance Requirements Section of this Contract or other property insurance applicable to the work. The policies shall provide such waivers by endorsement or otherwise.' F. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than ANII. j G. Verification of Coverage Contractor shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement evidencingthe Automobile Liability and Commercial General : Y ' Liability insurance of the Contractor before commencement of the work: H'r Subcontractors Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the same insurance requirements as stated'herein for the Contractor. Client#:68158 HOKKDRIL3 DATE(MMIDDNYYY) ACORDTM CERTIFICATE OF LIABILITY INSURANCE 512012015 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES 'BELOW.THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT:If the certificate'holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed.If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,`certain policies may require an endorsement.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Wendy Mace Propel Insurance PHONE A/C,No,Ext800 499-0933 ac,No 866.577.1326 Bremerton Commercial insurance E-MAIL SS WLM@propelinsurance.com P.O.BOX 711 INSURER(S)AFFORDING COVERAGE NAIC# Bremerton,`WA 98337 INSURER A`:Ohio Security Insurance Company 24082 INSURED` INSURERS`;Ohio'Casualty Insurance Company Hokkaido Drilling Inc. .INSURER C.: PO Box 100 INSURER D Graham,WA '98338 _ INSURERE: INSURER F COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE,LISTED BELOW HAVE BEEN ISSUED TO THE'INSURED_NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,_TERM OR CONDITION OF ANYCONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY IPERTAIN, THE INSURANCE AFFORDED BY THE POLICIES'DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED'.BY - IMS. ILTR TYPE OF INSURANCE ADDLSUBR WVD POLICY NUMBS POLICY EF POLICY EXP LIMITS R MOLIC MOLIC A' GENERAL LIABILITY Y Y< BKS56049215 06/01l 014 06/01/2015 EA OCCURRENCE $1,000,000 MAGE TO RENTED 000 X COMMERCIAL GENERAL LIABILITY REMISES Ea occurrence $1,000, CLAIMS-MADE FX1 OCCUR MED EXP(Any one person) $15,000 PERSONAL&ADV INJURY $1,000,000 GENERAL AGGREGATE $2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OP AGG $2,000,000 POLICY PE LOC $ A COMBINED SINGLE LIMIT 1 000,000 AuromoBlLE LIABILITY BAS56049215 06/01/2014 06/01/201 Ea accident) $ X ANY AUTO ' BODILY INJURY(Per person) $ ALL OWNED SCHEDULED BODILY INJURY',(Peraccident) $ AUTOS AUTOS X HIRED AUTOS X NON-OWNED PROPERTY accident) DAMAGE $ AUTOS $ B X UMBRELLA LIAB X OCCUR US056049215 6/01/2014 06/01/2015 EACH OCCURRENCE $1,000,000 EXCESS LIAB CLAIMS-MADE AGGREGATE $1,000,000 DED X RETENTION$10 000 $ WORKERS COMPENSATION WA Stop Gap WC STATU- OTH- AND EMPLOYERS'LIABILITY A ANY PROPRIETOR/PARTNER/EXECUTIVE� BKS56049215 06/01/2014 06/01/201 E.L.EACH ACCIDENT $1,000,000 OFFICER/MEMBER EXCLUDED? N/A (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $1,000,000 If yes,describe,under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT` $1,000,000 DESCRIPTION OF OPERATIONS/LOCATIONS I VEHICLES(Attach ACORD 101,Additional Remarks Schedule,if more space is required) RE:,Riverbend Golf Complex Well Rehabilitation City,of Kent and Robinson Noble as representative for Riverbend Golf Complex are included as Additional Insured per the attached endorsment.Coverage is Primary and Non-Contributory and Waiver of Subrogation applies as required by written contract. CERTIFICATE HOLDER CANCELLATION City f Kt SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE y O en THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 220 Fourth Ave South ACCORDANCE WITH; THE POLICY PROVISIONS. Kent,WA 98032 AUTHORIZED REPRESENTATIVE ©1988-2010 ACORD CORPORATION.All rights reserved. ACORD 25(2010/05) 1 of 1 The ACORD name and logo'are registered marks of ACORD #S1736954/MI427009 BLB00 Client#:68158 HOKKDRIL3 DATE(MMIDDIYYYY) ACORDTM CERTIFICATE OF LIABILITY INSURANCE 5/20/2015 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT:If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed.If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Wendy Mace Propel insurance PHONE 800 499-0933 a A/C,No,Et): ,No): 866.577.1326 Bremerton Commercial Insurance EMAIL Wend macen r0 elinsurance.com ADDRESS: Y• vp p P.O.BOX 711 INSURER(S)AFFORDING COVERAGE NAIC# Bremerton,WA 98337 INSURER A:Ohio Security Insurance Company 24082 INSURED INSURER B Ohio Casualty Insurance Company 24074 Hokkaido Drilling Inc. - INSURER C PO Box 100 INSURER D Graham,WA 98338 INSURER E: INSURER F COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE-LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE'FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE.POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL,THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY P MS. INSR TYPE OF INSURANCE ADDL SUBR POLICY .,POLICY EXP LIMITS LTR INSR WVD POLICY NUMBER MM/DD EFFMM/DD A GENERAL LIABILITY Y Y' BKS56049215 06/01/20 5 06101120161 6/01/201 Eac OCCURRENCE 1,000,000 DAMAGE TO RENTED X COMMERCIAL GENERAL LIABILITY P MISES Ea occurrence $1,000,000 CLAIMS-MADE FXI OCCUR MED EXP(Any one person) $15,000 PERSONAL&ADV INJURY $1,000,000 GENERAL AGGREGATE $2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OP AGG- $2,000,000 O- F-]X POLICY E LOCCOM BIN $ A AUTOMOBILE LIABILITY Y BAS56049215 t� 06/01/2015 06/01/201 Ea accident)swGLE LIMIT $1,000,000 ANY AUTO BODILY INJURY(Per person)' $ ALL OWNED X SCHEDULED BODILY INJURY(Per accident) $ AUTOS AUTOS X HIRED AUTOS X NON-OWNED PeOPERTaccident)DAMAGE $ AUTOS B X UMBRELLA LIAB X OCCUR US056049215 06/01/2015 06101/2016 EACH OCCURRENCE $1,000,000 EXCESS LIAB CLAIMS-MADE AGGREGATE $1,000,000 DED I X'RETENTION$10 000 $ WORKERS COMPENSATION WC STATU- OTH- AND EMPLOYERS'LIABILITY YIN TORY LIMITS E R. A ANY PROPRIETOR/PARTNER/EXECUTIVE BKS56049215 06/01/2015 0610112016 E.L.EACH ACCIDENT $1,000,000` OFFICER/MEMBER EXCLUDED? N/A (Mandatory in NH) WA Stop Gap, E.L.DISEASE-EA EMPLOYEE $1,000,000 If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $1,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES(Attach ACORD 101 Additional Remarks Schedule,if more space is required) RE: Riverbend Golf Complex Well Rehabilitation City of Kent and Robinson Noble as representative for Riverbend Golf Complex are included as Additional Insured per the attached endorsment.Coverage is Primary and Non-Contributory and Waiver of Subrogation applies as required by written contract. CERTIFICATE HOLDER CANCELLATION City f Kent SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE y O THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 220 Fourth Ave South ACCORDANCE WITH THE POLICY PROVISIONS. Kent,WA 98032 AUTHORIZED REPRESENTATIVE ©1988-2010 ACORD CORPORATION.All rights reserved. ACORD 25(2010/05) 1 of 1 The ACORD name and logo are registered marks of ACORD #SI 7369551M1735556 BLB00 Hokkaido Drilling Inc. BKS56049215 COMMERCIAL GENERAL LIABILITY CG 88 10 0413 THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. COMMERCIAL GENERAL LIABILITY EXTENSION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART INDEX SUBJECT PAGE NON-OWNED AIRCRAFT 2 NON-OWNED WATERCRAFT 2 PROPERTY DAMAGE LIABILITY-ELEVATORS 2 EXPENDED DAMAGE TO PROPERTY RENTED TO YOU(Tenant's Property Damaged 2 MEDICAL PAYMENTS EXTENSION 3 EXTENSION OF SUPPLEMENTARY PAYMENTS-COVERAGES A ANDS 3 ADDITIONAL INSUREDS-BY CONTRACT,AGREEMENT OR PERMIT 3 PRIMARY AND NON-CONTRIBUTORY-ADDITIONAL INSURED EXTENSION 5 ADDITIONAL INSUREDS-EXTENDED PROTECTION OF YOUR"LIMITS OF INSURANCE" WHO IS AN INSURED-INCIDENTAL MEDICAL ERRORSIMALPiRACTICE AND WHO IS AN INSURED-FELLOW EMPLOYEE EXTENSION MANAGEMENT EMPLOYEES - 6 NEWLY FORMED OR ADDITIONALLY'ACQUIRED ENTITIES 7 FAILURE TO DISCLOSE HAZARDS AND PRIOR OCCURRENCES 7 KNOWLEDGE OP OCCURRENCE,OFFENSE,CLAIM OR SUIT 7 LIBERALIZAT)ON CLAUSE 7 BODILY INJURY REDEFINED 7 EXTENDED PROPERTY DAMAGE 8 WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US- 8 WHEN REQUIRED IN A CONTRACT OR AGREEMENT WITH YOU I 2013 Liberty Mutual Insurance CG 8810 04 13 Includes copyrighted material of Insurance Services Office,Inc„with its permission. Pagel of 8 Hokkaido Drilling Inc. BKS56049215 With respect to coverage afforded by this endorsement,the provisions of the policy apply unless modified.by, the endorsement. A. NON-OWNED AIRCRAFT Under Paragraph 2. Exclusions of Section l - Coverage A-.Bodily Injury And Property Damage Liability, exclusion g.Aircraft,Auto Or Watercraft does not apply to an aircraft provided: 7. it is not owned by any insured; 2. it is hired,chartered or loaned with a trained paid crew; 3. The pilot in command bolds a currently effective certificate,issued by the duly constituted authority of the United States of America or Canada,designating her or him a commercial or airline pilot;and 4. It is not being used to carry persons of property for a charge. However,the insurance afforded:.by this provision does not apply if there is available to the insured other valid and collectibie insurance,whether primary,excess(other than insurance written to apply specifically in excess of this policy),contingent or on any other basis,that would also apply to the loss covered under 'this provision. S. NQN-IptNNED WATERCRAFT Under Paragraph 2.Exclusions of Section I-Coverage A-Bodily Injury And Property Damage Liability, Subparagraph(2)of exclusion g.Aircraft,Auto Or Watercraft is replaced by the following: This exclusion does not apply to: (2) A watercraft you do not own that is: (a) Less than 52 feet long;and (b) Not being used to carry persons or property for a charge. C. PROPERTY DAMAGE LIABILITY-ELEVATORS 1. Under Paragraph,2. Exclusions of Section i-Coverage A-Bodily Injury And Property Damage Liabil- ity, Subparagraphsr (3),,(4) and (6)'of exclusion j.'Damage To Property do not apply if such "property damage" results from.the use of elevators. For the purpose of this provision,elevators,do not include vehicle lifts.Vehicle lifts are lifts or hoists used in automobile service or repair operations. 2. The fvllawing is added to Section IV Commercial General Liability' anditions, Condition 4. Other Insurance,Paragraph b.Excess Insurance: The insurance afforded by this provision of this endorsement is excess over any property insurance, whether�primary,,excess,contingent or on any other basis, D. EXTENDED'DAMAGE TO PROPERTY RENTED TO YOU(Tenant's Property Damage) If Darnage To Premises Rented To You is not otherwise excluded from this Coverage Part: 1. Under Paragraph 2.Exclusions of Section I-Coverage A-{bodily Injury and Property Damage liability: a.' The fourth front the last paragraph of exclusion j. Damage To Property is replaced by the follow- ing. Paragraphs(1),(3)and(4)of this exclusion do not apply to"property damage" (other than damage by; fire,lightning,explosion,smoke,or leakage from an automatic fire protection system)to; (Q Premises rented to you for a period of 7 or fewer consecutive days;or, {ii) 'Contents that you rent or lease as part of a premises rental'or lease agreement for a period of more than 7 days. Paragraphs, (1), (3) and (4) of this exclusion do not apply to "property damage" to contents of premises rented to you for period of 7 or fewer consecutive days. A► separate limit of insurance applies to this coverage as described in Section III - Limits of Insurance. a 2013 Liberty Mutual insurance CG 8810 04 73 Includes copyrighted material of Insurance Services office,Inc.,with its permission. Page 2 of 8 Hokkaido Drilling Inc. BKS56049215 b. The last paragraph of subsection 2.Exclusions is replaced by the following: Exclusions c.through n. do not apply to damage by fire, lightning, explosion, smoke or leakage from automatic fire protection systems to premises while rented to you or temporarily occupied by you with permission of the owner. A separate limit of insurance applies to Damage To Premises Rented To You as described in Section III-Limits Of Insurance. 2. Paragraph 6.under Section III-Limits Of Insurance is replaced by the following: j 6. Subject to Paragraph B.above,the Damage To Premises Rented To You Limit is the most we will pay under Coverage A for damages because of"property damage"to: a. Anyone premise: (1) While rented to you; or (2) While rented to you or temporarily occupied by you with permission of the owner for damage by fire, lightning, explosion, smoke or leakage from automatic protection sys- tems; or I' b. Contents that you rent or lease as part of a premises rental or lease agreement. 3. As regards coverage provided by this provision D. EXTENDED DAMAGE TO PROPERTY RENTED TO YOU(Tenant's Property Dama9e)-Paragraph 9.a.of Definitions is replaced with the following: 9.a.A contract for a lease of premises. However,'that portion of the contract for a lease of premises that 1 indemnifies any parson or organization for damage by fire, lightning, explosion, smoke, or leakage from automatic fire protection systems to, premises while rented to you or temporarily occupied by you with the permission of the owner, or for damage to contents of such premises that are included in your premises rental or lease agreement,is not an "insured contract". E. MEDICAL PAYMENTS EXTENSION If Coverage C Medical Payments is not otherwise excluded,the Medical Payments provided by this policy are amended as follows: Under.Paragraph 1.Insuring Agreement of Section 1-Coverage C Medical Payments,Subparagraph (b)of Paragraph a is replaced by the following: (b) The expenses are incurred and reported within three years of the date of the accident;and F. EXTENSION OF SUPPLEMENTARY PAYMENTS-COVERAGES A AND B 1. Under Supplementary Payments-Coverages A and B,Paragraph 1.b.is replaced by the following: b. Up to$3,000 for cost of bail bonds rewired because of accidents or traffic law violations arising out of the use'of any vehicle to which th'e Bodily Injury Liability Coverage applies.We do not have to furnish these bonds. 2. Paragraph 1!.d.is replaced by the following: d. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual loss of earnings up to$500 a day because of time off from work, G." ADDITIONAL INSUREDS.BY CONTRACT,AGREEMENT OR PERMIT 1. Paragraph 2. under Section It-Who Is An Insured is amended to include as an insured any person or organization'whom you have agreed to add as an additional insured in a written contract, written agreement or permit. Such person or organization is an additional insured but only with respect to liability for "bodily injury "property damage" or personal and advertising injury" caused in whole or in pare by a. Your acts or omissions,or the acts or omissions of those acting on your behalf,in the performance Of your,on going operations for the additional insured that are the subject of the written contract or written agreement provided that the "bodily injury" or "property damage occurs, or the "per- sonal and advertising injury" is committed,subsequent to the signing of such written contract or written agreement;or o 201 Mutual Insurance . 3 f.lbert Y i permission. Page 3 of 8 Inc.,with is ri t ii'Insurance Services Office $ CG 031U 0413 Includes copyrighted mate a o I►�su a P Hokkaido Drilling Inc. BKS56049215 b. Premises or facilities rented by you or used by you;or, c. The maintenance,operation or use by you of equipment rented or leased to you by such person or organization;or d. Operations performed by you or on your behalf,for which the state or political subdivision has issued a permit subject to the followi ng additional provisions: (1) This insurance does not apply to bodily,injury", ,property damage"', or personal and ad- vertising injury"arising out of the operations performed for the state or political subdivision; (2) This insurance does not apply to "bodily injury" or "property damage" included within the "completed operations hazard". i (3) Insurance applies to premises you own,rent,or control but only with respect to the following hazards: (a) The existence, maintenance, repair, construction, erection, or removal of advertising signs, awnings, canopies, cellar entrances, coal holes,driveways, manholes, marquees, hoist away openings, sidewalk vaults, street banners, or decorations and similar expo- sures;or N The construction,erection,or removal of elevators; or (c) The ownership,maintenance,or use of any elevators covered by this insurance. However: 1. The insurance afforded to such additional insured only applies to the extent permitted by law;and 2. If coverage provided to the additional insured is required by a contract or agreement, the insur- ance afforded to such additional insured wi11 not be broader than that which you are required by the contractor agreement to provide for such'additional insured. With respect to Paragraph 1.a. above, a'person's or organization's status as an additional insured under this endorsement ends when; (1) All work,including materials, parts or equipment furnished in connection with such work,on the project(other than service,maintenance or repairs)to be performed by or on behalf of the additional insured(O at the location of the covered operations has been completed; or (2) That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor p ' operations for a principal as apart of the same project. engaged in erforming oerat With respect to Paragraph f.b. above, a person's or organization's status as an`additional insured under this endorsement ends when their written contract or written agreement with you for such premises or facilities ends. With,respects to Paragraph I.c.above,this insurance does not apply to any "occurrence" which takes place after the equipment rental or lease agreement has expired or you have returned such equipment to the lessor The insurance provided by this endorsement applies only if the written contract or written agreement is signed prior to the"bodily injury"or"property damage". We have no duty to defend an additional_.nsured under this endorsement until we receive written notice of a"suit" by the additional insured as required in Paragraph b. of Condition 2. Duties In the Event Of Occurrence,Offense,Claim Or Suit under Section IV-Commercial General Liability Condi- tions. 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of insurance Services Office,Inc.,with its permission. Page 4 of 8 Hokkaido Drilling Inc. BKS56049215 2. With respect to the insurance provided by this endorsement,the following are added to Paragraph 2. Exclusions under Section 1-Coverage A-Bodily Injury And Property Damage,Liability: This insurance does not apply to a. "Bodily injury"or"property damage"arising from the sole negligence of the additional insured. b. "Bodily injury" or "property damage that occurs prior to you commencing operations at the location where such"bodily injury"or"property damage"occurs. C. "Bodily injury", "property damage"or"personal and advertising injury"arising out the render- ing of, or the failure to render,any professional architectural,engineering or surveying services, including: (1) The preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports,surveys,field orders,charge orders or drawings and specifications;or (2) Supervisory,inspection,architectural or engineering activities. This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision,!hiring, employment, training or monitoring of others;by that insured, if the "occur- rence" which caused the "bodily injury" or "property damage" or the offense which caused the personal and'advertising dvertising injury" involved the rendering of,or the failure to render,any professional architectural,engineering or surveying services. d. "Bodily injury"or"property damage"occurring after: (1j All work, including materials,,parts or equipment furnished in connection with such work, on the project(other than service, maintenance or repairs)to be performed by or on behalf of the additional insured(s)at the location of the covered operations has been completed; or: (2) That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization performing other than another contractor or subcontractor engaged in g operations for a principal:as a part of the same project. e. Any person or organization specifically designated as an additional insured for ongoing operations by a separate ADDITIONAL INSURED -OWNERS, LESSEES OR CONTRACTORS endorsement is- sued by,us and made a part of this policy. 3. With respect to the insurance afforded to these additional insureds,the following is added to Section III Limits Of Insurance: If coverage provided to the additional'insured is required by a contract or agreement,the most we will on behalf pay If of the additional insured is the amount of insurance: a ' a. Required by the contract or agreement; or b. Available under the applicable Limits of Insurance shown in the Declarations; ' whichever is less._ This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations. H. PRIMARY AND NON-CONTRIBUTORY ADDITIONAL INSURED EXTENSION This provision applies to any person or organization who qualifies as an additional insured under any form or endorsement under this policy. Condition 4.Other Insurance of SECTION 1U-COMMERCIAL GENERAL LIABILITY CONDITIONS is amend- ed as follows: a. The following is added to Paragraph a.Primary Insurance: If an additional insured's policy has an Other Insurance provision making its policy excess,and you have agreed in a written contractor written agreement to provide the additional insured coverage on a primary and noncontributory basis,this policy shall be primary and we will not seek contribution from the additional'insured's'policy for damages we cover. 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of insurance Services Office,Inc.,with its permission. Page 6 of 8 Hokkaido.Drilling Inc. BKS56049215 b. The following is added to Paragraph Is.Excess Insurance: When a written contract or written agreement,other than a premises lease,facilities rental contractor agreement,an equipment rental or lease contract or agreement,or permit issued by a state or political subdivision between you and an additional insured.does not require this insurance to be primary or primary and non-contributory,this insurance is excess over any other insurance for which the add!- tional insured is designated as a Named Insured. Regardless of the written agreement between you and an additional insured,this insurance is excess over any other insurance whether primary, excess, contingent or on any other basis for which the additional insured has been added as an additional insured on other policies. 1. ADDITIONAL INSUREDS-EXTENDED PROTECTION OF YOUR"LIMITS OF INSURANCE This provision applies to any person or organization who qualifies as an additional insured under any,form or endorserent under this policy, i_ The following is added to Condition 2.Duties In The Event Of Occurrence,Offense,Claim orSuit: An additional`insured under this endorsement will as soon as practicable: a. Give written notice of an"occurrence"or an offense that may result in a claim or."suit" under thls'insurance to us, b. Tender the defense and indemnity of any claim or "suit" to all insurers whom also have insurance available to the additional insured,and c. Agree to make available any other,insurance which the additional insured'has for a loss we cover under this Coverage Part. d. We have!no duty to defend or indemnify an additional insured'under this endorsement until we receive written notice of a"suit"by the additional insured. 2. The limits of insurance applicable to the additional insured are those specified in a written contract or written agreement or the limits of insurance as stated in the Declarations of this policy and - defined'!n Section III - Limits of Insurance of this policy, whichever are less. These iimits are inclusive of and not in addition to the limits of insurance available under this policy. J. WHO IS AN INSURED INCIDENTAL MEDICAL ERRORS/MALPRACTICE WHOIS AN INSURED-FELLOW EMPLOYEE EXTENSION-MAN;AGEME111T EMPLOYEES Paragraph 2.a.(!):of Section It-Who Is An Insured is replaced with the following: (1) "Bodily injury"or"personal and advertising injury": (a) To you,to your partners or members(if you are a partnership or joint venture),to your members(if you area limited liability company),to a co- employee while in the course of his or her employ- ment or performing duties related to the conduct of your business, or to your other "volunteer workers"while performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co-"employee" or "volunteer worker" as a consequence�of'Pa rag raph(1)(a)above; (c) For which there is any obligation to share damages with or repay someone else who roust pay damages because of the injury described in Paragraphs(1)(a)or(b)above;or (d) Arising out©f';hls 4r her providing or failing to provide professional healthcare services.However, if you are not''In the_business of providing professional health care services or providing profes- sional health','care personnel to others, or if coverage for providing professional health care ser- vices is not otherwise excluded by separate endorsement, this provision(Paragraph (d)}does not apply. Paragraphs(a)and(b}above.do not apply to "bodily lnjury"or"personal and advertising injury"caused by an "employee"who is acting in a supervisory,capacity for you. Supervisory.capacity as used herein means the "empioyee's" job'responsibilities assigned by you, includes the direct supervision of other."employ- ees" of yours. However, none-of these "employees" are insureds for "bodily injury" or "personal and Q 2013 Liberty mutual Insurance CG 88 10 0413 Includes copyrighted material of insurance Services Office,Mo.,with its permission. Page 6 of 8 Hokkaido Drilling Inc. BKS56049215 advertising injury" arising out of their willful conduct,which is defined as the purposeful or willful intent to cause "bodilyinjury" or `'personal and advertising injury", or caused in whole or in part by their intoxica- tion by liquor or controlled substances. The coverage provided by provision J.is excess over any other valid and collectable insurance available to j your"employee", K. NEWLY FORMED OR ADDITIONALLY ACQUIRED ENTITIES Paragraph 3.of Section II-Who 1s An Insured is replaced by the following: 3. Any organization you newly acquire or form and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no'other similar insurance available to that organization.However: a. Coverage under this provision is afforded only until the expiration of the policy period in which the entity was acquired or formed by you; o b. Coverage A does not apply to bodily injury Tt or property damage that occurred before you acquired orformed.the organization;and c. Coverage B does not apply to "personal and advertising injury" arising out,o# an' offense committed before you acquired or formed the organization. d. Records and descriptions'of operations must be maintained by the first Named Insured. No person'or organization is an insured with respect to the conduct of any`current or past partnership,joint venture or limited liability company that is not shown as a Named Insured in the Declarations or qualifies as an insured.under this provision. L. FAILURE TO DISCLOSE HAZARDS AND PRIOR OCCURRENCES Under Section IV-Commercial General Liability Conditions,the following is added to Condition S.Repre- sentations: Your failure to disclose all hazards or prior"occurrences"existing as of the inception date of the policy shall not prejudice the coverage afforded by this policy provided such failure to disclose all hazards or p 'r�or"occurrences"is not intentional. M. KNOWLEDGE OF OCCURRENCE,OFFENSE;CLAIM OR SUIT Under Section IV-Commercial General Liability Conditions,the following is added to Condition 2. Duties In The Event of Occurrence,offense,Claim Or Suit: Knowledge of an "occurrence", offense, claim or "suit" by an agent, servant or "employee" of any insured shall not in itself constitute knowledge of the insured unless an insured listed under Paragraph 1. of Section It-Who is An Insured or a person who has been designated by them to receive reports`of "occurrences", offenses,claims or "suits" shall have received such notice from the agent,.servant or „employee" N. LIBERALIZATION CLAUSE If we revise this Commercial General'Liability Extension Endorsement to provide more coverage without additional premium charge,your policy wil l automatically provide the coverage as of the day the revision is effective in your state. 0. BODILY INJURY REDEFINED Under Section -Definitions,'Definition 3.is replaced by the following: 3. "Bodily Injury" means physical injury, sickness or disease sustained by a person. This includes mental,anguish, mental injury,shock,fright or death that results from such physical injury,sick- ness or disease. 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office,Inc.,with its permission. Page 7 of 8 Hokkaido Drilling Inc. BKS56049215 P. EXTENDED PROPERTY DAMAGE Exclusion al. of COVERAGE A. BODILY INJURY AND PROPERTY DAMAGE LIABILITY is replaced by the following: a. Expected Or Intended injury "Bodily injury" or "property damage" expected or intended from the standpoint of the insured. This exclusion does not apply to "bodily injury" or "property damage" resulting from the use of reasonable force to protect persons or property. 0. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US WHEN REQUIRED IN A CONTRACT OR AGREEMENT WITH YOU Under Section IV-Commercial General Liability Conditions,the'following=is added to`Condition S.Trans- fer Of Rights Of Recovery Against Others To Us: We waive any right of recovery we may have against a person or organization.because of payments we make for injury or damage arising out of your ongoing operations or "your work" done under a contract with that person or organization and included in the "products-completed operations hazard" provided: 1. You and that person or organization have agreed in writing in a contract or agreement that you waive such rights against that person or organization;and 2. The injury or damage occurs subsequent to the execution of the written contract or written agree- ment. a 2013 Liberty Mutual Insurance CG 8810 0413 includes copyrighted material of Insurance Services office,Inc.,with its permission. Page 8 of 8 Hokkaido Drilling Inc. BAS56049215 COMMERCIAL AUTO CA.8810 01 10 THIS ENDORSEMENT CHANGES THE POLICY.`PLEASE READ IT CAREFULLY. BUSINESS AUTO COVERAGE ENHANCEMENT ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM With respect to coverage afforded by this endorsement, the provisions of the policy apply unless modified by the endorsement. COVERAGE INDEX SUBJECT PROVISION NUMBER ADDITIONAL INSURED BY CONTRACT, AGREEMENT OR PERMIT 3 ACCIDENTAL AIRBAG DEPLOYMENT 12 AMENDED DUTIES IN THE EVENT OF ACCIDENT, CLAIM, SUIT OR LOSS 18 AMENDED FELLOW EMPLOYEE EXCLUSION 5 AUDIO, VISUAL AND DATA ELECTRONIC EQUIPMENT COVERAGE 13 BROAD FORM INSURED 1 BODILY INJURY REDEFINED 21 EMPLOYEES AS INSUREDS (including employee hired auto) 2 EXTENDED CANCELLATION CONDITION 22 EXTRA EXPENSE—BROADENED COVERAGE 10 GLASS REPAIR'7WAIVER OF DEDUCTIBLE 15 HIRED AUTO PHYSICAL DAMAGE(including employee hired auto) 6 HIRED .AUTO COVERAGE TERRITORY 20 LOAN!:LEASE GAP ' 14 PARKED AUTO COLLISION COVERAGE(WAIVER OF DEDUCTIBLE) 16 PERSONAL EFFECTS COVERAGE 11 PHYSICAL DAMAGE'-ADDITIONAL TRANSPORTATION EXPENSE COVERAGE 8 RENTAL REIMBURSEMENT 9 SUPPLEMENTARY PAYMENTS - 4 TOWING AND LA BOR 7 UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS 17 WAIVER OF TRA NSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US 19 ' SECTION LIAB ILITY COVERAGE is amended as follows: 1. BROAD FORM INSURED SECTION II—LIABILITY COVERAGE, paragraph A.1.-WHO IS AN INSURED is amended to include the following as an insured: d. Any,legally incorporated entity of which you own more than 50 percent of the voting stock during the policy period. However, "insured" does not include any organization that: (1) Is a partnership or joint venture;or (2) Is an insured under any other automobile policy; or (3) Has exhausted its Limit of Insurance under any other automobile policy. Paragraph d.(2) of this provision does not apply to a policy written to apply specifically in excess of this'policy. e. Any organization you newly acquire or form, other than a partnership or joint venture, of which you own'more than 50 percent of the voting stock. This automatic coverage is afforded only for 180 days from the date of acquisition or formation. However,coverage under this provision does not apply: (1) If there is similar insurance.or a self-insured retention plan available to that organization; ©2010 Liberty Mutual Insurance Company.All rights reserved. CA 88 10 01 10 Includes copyrighted material of Insurance Services office,with its permission. Pagel of 7 (2) If the Limits of Insurance of any other insurance policy have been exhausted;or (3) To "bodily injury" or "property damage" that occurred before you acquired or formed the organization. 2. EMPLOYEES AS INSUREDS SECTION II-LIABILITY COVERAGE, paragraph A.I.—WHO IS AN INSURED is amended to include the following as an insured: f. Any"employee"of yours while using a covered"auto"you do not own, hire or borrow but only for acts within the scope of their employment`by you. Insurance provided by this endorsement is excess over any other insurance available to any"employee". g. An "employee" of yours while operating an "auto hired or borrowed under a written contract or agreement in that "employee's" name, with'your permission, while performing,duties related to the conduct of your business and within the scope of their employment. Insurance provided by this endorsement is excess over any other insurance available to the "employee". 3. ADDITIONAL INSURED BY CONTRACT,AGREEMENT OR PERMIT SECTION II LIABILITY COVERAGE, paragraph A.I.-WHO IS AN INSURED'is amended to include the following as an insured: h. Any person or organization with respect to the operation, maintenance or use of a covered "auto provided that you and such person or organization have agreed in a written contract,agreement, or permit issued to you by governmental or public authority, to add such person, or organization, or governmental or public authority to this policy as an"insured". However, such person or organization is an"insured (1) Only with respect to the operation, maintenance or use of a covered"auto"; (2) Only for"bodily'injury" or"property damage" caused by an"accident"which takes place after you executed the written contract or agreement,or the permit has been issued to you; and (3)`Only for the duration of that contract, agreement or permit 4. SUPPLEMENTARY PAYMENTS SECTION II-LIABILITY COVERAGE, Coverage Extensions, 2.a. Supplementary Payments, paragraphs (2)and(4)are replaced by the following: (2) Up to $3,000 for cost of bail bonds (including bonds for related traffic violations) required because of an"accident"we cover. We do nothave to furnish these bonds: (4) All reasonable expenses incurred by the insured at our request, including.actual loss of earnings up. to$500 a day because of time off from work. 5. AMENDED FELLOW EMPLOYEE EXCLUSION In those jurisdictions where, by law, fellow employees are not entitled to the protection afforded to the employer by the workers compensation exclusivity rule, or'similar protection,'the following provision is added: SECTION ll LIABILITY, exclusion B.5. FELLOW EMPLOYEE does not apply if the"bodily injury" results from the use of a covered"auto"you own or hire. SECTION III-PHYSICAL DAMAGE COVERAGE is amended as follows: 6. HIRED AUTO PHYSICAL DAMAGE Paragraph A.4. Coverage Extensions of SECTION III PHYSICAL DAMAGE COVERAGE, is amended by adding the following: If hired "autos" are covered "autos" for Liability Coverage, and if Comprehensive, Specified Causes of Loss or Collision coverage are provided under the Business Auto Coverage Form for any"auto"you own, then the Physical Damage coverages provided are extended to"autos": a. You hire, rent or borrow;or 02010 Liberty Mutual Insurance Company. All rights reserved. CA 88 10 0110 Includes copyrighted material of Insurance Services Office,with its permission. Page 2 of 7 b `Your"employee" hires or rents under a written contract or agreement in that"employee's" name, but only if the damage occurs while the vehicle is being used in the conduct of your business, subject to the following limit and deductible: A. The most we will pay for"loss'' in anyone"accident"or"loss" is the smallest of: (1) $50,000; or (2) The actual cash value of the damaged or stolen property as of the time of the"loss";or (3) The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality, -minus a deductible.. B. The deductible will be equal to the largest deductible applicable to any owned "auto" for that coverage: C. Subject to the limit, deductible and excess provisions described in this provision, we will provide coverage equal to the broadest coverage applicable to any covered"auto"you own. D. Subject to a maximum of$750 per"accident", we will also cover the actual loss of use of the hired "autb"i if it results from an "accident", you are legally liable and the lessor incurs an actual financial loss. E. This coverage'extension does not apply to: (1) Any"auto"that is hired, rented or borrowed with a driver;or (2) Any"auto"that is hired, rented or borrowed from your"employee". For the purposes of this provision,SECTION V—DEFINITIONS is amended by adding the following:_ "Total loss" means a "loss" in which the cost of repairs plus the salvage value exceeds the actual cash value. 7.1 TOWING AND LABOR SECTION III-PHYSICAL DAMAGE COVERAGE, paragraph A.2. Towing, is amended by the addition of the following: We will pay towing and labor costs incurred, up to the limits shown below, each time a covered "auto classified and rated as a private passenger type, "light truck"or"medium truck" is disabled; a. For private passenger type vehicles,we will pay up to$50'per disablement: b. For"light trucks", we will pay up to $50 per disablement. "Light trucks are trucks that have a gross vehicle weight(GVw) of 10,00.0 pounds or less. c. For"medium trucks" , we will pay up to$150 per disablement. "Medium trucks"are trucks that have a gross vehicle weight(GVVV)of 10,001 —20,000 pounds. However, the labor must be performed at the place of disablement. 8. PHYSICAL DAMAGE-ADDITIONAL TRANSPORTATION EXPENSE COVERAGE Paragraph A.4.a., Coverage Extension of SECTION III-PHYSICAL DAMAGE COVERAGE, is amended to provide a limit of$50 per day and a maximum limit of$1,500' I 02010 Liberty Mutual Insurance Company.All rights reserved. CA 8810 01 10 Includes copyrighted material of Insurance Services Office,with its permission. Page 3 of 7 9. RENTAL REIMBURSEMENT SECTION III-PHYSICAL DAMAGE COVERAGE,A. COVERAGE, is amended by adding the following: a.. We will pay up to$75 per day for rental reimbursement expenses incurred by you for the rental of an "auto" because of "accident or "doss", to an 'auto" for which_ we also pay a "loss" under Comprehensive, Specified Causes of Loss or Collision Coverages. We will pay only for those expenses incurred after the first 24 hours following the"accident" or"Foss"to the covered"auto." i b. Rental Reimbursement will be based on the rental of a comparable vehicle, which in many casesmay be substantially less than$75 per day, and will only,be allowed for the period of time it should take to repair or replace the vehicle with reasonable speed and similar quality, up to a maximum of 30 days. c. We will also pay up to$500 for reasonable and necessary expenses incurred by you to remove and replace your tools and equipment from the covered "auto". d. This coverage does'notapply unless you have a business necessity that other "autos" available for your use and operation cannot fill. e. If"loss"results from the total theft of a covered"auto"of the private passenger type,we will pay under this coverage only that amount of your, rental reimbursement expenses which is not already provided under Paragraph 4.Coverage Extension. f. No deductible applies to this coverage. For the purposes of this endorsement provision, materials and equipment do not include "personal effects'as defined in provision 11: 10. EXTRA EXPENSE-BROADENED COVERAGE Under SECTION III—'PHYSICAL DAMAGE COVERAGE, A. COVERAGE, we will pay for the expense of returning a stolen covered"auto"to you. The maximum amount we will pay is$1,000. 11. PERSONAL EFFECTS'COVERAGE A. SECTION III - PHYSICAL DAMAGE COVERAGE, A. COVERAGE, is amended by adding the following: If you have purchased Comprehensive Coverage on this policy for an"auto" you own and that "auto is stolen, we will pay, without application of a deductible, up to$600 for"personal effects"stolen with the"auto." The insurance provided under this provision is excess over any other collectible insurance. B. SECTION V DEFINITIONS is amended by adding the following: For the purposes of this provision, "personal effects" mean tangible property that is worn or carried by an insured." "Personal effects does not include tools, equipment,jewelry, money or securities. 12. ACCIDENTAL AIRBAG DEPLOYMENT SECTION III PHYSICAL DAMAGE COVERAGE,B. EXCLUSIONS is amended by adding the following: If you haverpurchased Comprehensive or Collision Coverage under this policy, the exclusion for"loss" relating to mechanical breakdown does not apply to the accidental discharge of,an airbag. Any insurance we provide shall be excess over any other collectible insurance or reimbursement by manufacturer's warranty. However, we agree to pay any deductible applicable to the other coverage or warranty. 13. AUDIO,VISUAL AND DATA ELECTRONIC EQUIPMENT COVERAGE SECTION III — PHYSICAL DAMAGE COVERAGE, B. EXCLUSIONS, exception paragraph a. to exclusions 4.c. and 4.d.is deleted and replaced with the following: 02010 Liberty Mutual Insurance Company.All rights reserved. CA 88 10 0110 Includes copyrighted material of Insurance Services Office,with its permission. Page 4 of 7 Exclusion 4.c.and 4.d. do not apply to: a. Electronic equipment that receives or transmits audio, visual or data signals, whether or not designed solely for the reproduction of sound, if the equipment is permanently installed in the covered"auto" at the time of the"loss"and such equipment is designed to be solely operated by use of the power from the "auto's" electrical system, in or'upon the covered "auto" and physical damage coverages are provided for the covered"auto";or If the "loss" occurs solely to audio, visual or data electronic equipment or accessories used with this equipment, then our obligation to pay for, repair, return or replace damaged or stolen property will be reduced by a$100 deductible. 14. LOAN!LEASE GAP COVERAGE A. Paragraph C.,' LIMIT OF INSURANCE of SECTION III PHYSICAL DAMAGE COVERAGE is amended by adding the following: The..most we will pay for a "total loss" toila covered "auto" owned by or leased to,you in any one "accident" is the greater of the: 1. Balance due under the terms of the loan or lease to which the damaged covered"auto".;is subject at the time of the"loss" less the amount of: a. Overdue payments and financial penalties associated with those payments as of the date of the"loss", b. Financial penalties imposed under a lease due to high mileage, excessive use or abnormal wear'and tear, c. Costs for extended warranties, Credit Life Insurance, Health, Accident or Disability Insurance purchased with the loan or lease, d. Transfer or rollover balances from previous loans or leases, e. Final payment`due under a"Balloon Loan f. The dollar amount of any unrepaired'damage which occurred prior to the "total loss" of a covered"auto" g. Security deposits not refunded by a lessor, h. All refunds payable or paid to you as a result of the early termination of a lease agreement or as a result of the early termination of any warranty or extended service agreement on a covered"auto i. Any amount representing taxes, j. Loan or lease termination flees; or 2. The actual cash value of the damage or stolen property as of the time of the"loss" An adjustment for depreciation and physical condition will be made in determining the actual cash value at the time of the"loss This adjustment is not applicable in Texas. B. ADDITIONAL CONDITIONS This coverage applies only to the original loan for which`the covered "auto" that incurred the loss serves as collateral, or lease written on the covered"auto"that incurred the loss. C. SECTION V-DEFINTIONS is changed by adding the following: As used in this endorsement provision,the following definitions apply: "Total loss" means a "loss" in which the cost of repairs plus the salvage value exceeds the actual cash value. A"balloon loan" is one with periodic payments that are insufficient to repay the balance over the term of the loan, thereby requiring a large final payment. 02010 Liberty Mutual Insurance Company.All rights reserved. CA 88 10,01 10 Includes copyrighted material of Insurance Services Office,with its permission. Page 5 of 7 i 15. GLASS REPAIR WAIVER OF DEDUCTIBLE - _ Paragraph D. Deductible of SECTION III - PHYSICALDAMAGE COVERAGE is amended by the addition of the following No deductible applies to glass damage if the glass is repaired rather than replaced. 16. PARKED AUTO COLLISION COVERAGE(WAIVER OF DEDUCTIBLE) Paragraph D. Deductible of SECTION III - PHYSICAL DAMAGE COVERAGE is amended by the addition of the following The deductible does not apply to "loss" caused by collision to such covered "auto"' of the private passenger type or light weight truck with a gross vehicle weight of 10,000 lbs. or less as defined by the' manufacturer as maximum loaded weight the"auto" is designed to carry while it is: a. In the charge of an"insured b. Legally parked;and c. Unoccupied. The"loss" must be reported to the police authorities within 24 hours of known damage. The total amount of the damage to the covered "auto" must exceed the deductible shown in the Declarations., This provision does not apply to any "Loss" if the covered "auto" is in the charge of any person or organization engaged in the automobile business. SECTION IV_BUSINESS AUTO CONDITIONS is amended as follows: 17. UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS SECTION IV-'BUSINESS AUTO CONDITIONS, Paragraph B.2. is amended by adding the following:_ If you unintentionally fail to disclose any hazards, exposures or material facts existing as of the inception date or renewal date of the Business Auto Coverage Form,the coverage afforded by this policy will not be prejudiced: However, you must report the undisclosed hazard of exposure as soon as practicable after its discovery, and we have the right to collect additional premium for any such hazard or exposure.' 18. AMENDED DUTIES IN THE EVENT OF ACCIDENT, CLAIM,SUIT,OR LOSS SECTION IV — BUSINESS AUTO CONDITIONS, paragraph A.2.a. is-replaced in its entirety by the following: a. In the event of"accident", claim, "suit"or"loss", you must promptly notify us when it is known to: 1. You, if you are an individual; 2. A partner,if you are a partnership; 3. Member, if you are a limited liability company; 4. An executive officer or the "employee" designated by the;Named Insured to give such notice, if you are a corporation. To the extent possible, notice to us should include: (1) How,when and where the"accident' or"loss"took place; (2) The"insureds" name and address;and (3) The names and addresses of any injured persons and witnesses. 19. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US SECTION IV—BUSINESS AUTO CONDITIONS, paragraph A.5.,Transfer of Rights of Recovery Against Others to Us, is amended by the addition of the following: If the person or organization has waived those rights before an"accident"or "loss",our rights are waived also. 02010 Liberty Mutual Insurance Company.All rights reserved. CA 88 10 0110 Includes copyrighted material of Insurance Services Office,with its permission. Page 6 of 7 20. HIRED AUTO COVERAGE TERRITORY SECTION IV BUSINESS AUTO,CONDITIONS, paragraph B.7., Policy Period, Coverage Territory, is amended by the addition of the following: f. For "autos" hired 30 days or less, the coverage territory is anywhere in the world, provided that the insured's responsibility to pay for damages is determined in a "suit", on the merits, in the United States, the territories and possessions of the United States of America, Puerto Rico or Canada or in a settlement we agree to. This extension of coverage does not apply to an "auto" hired, leased, rented or borrowed with a driver. SECTION V-DEFINITIONS is amended as follows: 21. BODILY INJURY REDEFINED Under SECTION V—DEFINTIONS, definition C. is replaced by the following: "Bodily Linjury" means 'physical injury, sickness or disease 'sustained by a person, including mental anguish; mental injury, shock,fright or death resulting from any of these at anytime. COMMMON POLICY CONDITIONS 22. EXTENDED CANCELLATION CONDITION COMMON POLICY CONDITIONS, paragraph A.-CANCELLATION condition applies except as follows: If we cancel for any reason other than nonpayment of premium, we will mail to the first Named Insured written notice of cancellationat least 60 days before the effective date of cancellation. This provision does not apply in those states which require morethan 66 days prior notice of cancellation. 02010 Liberty Mutual Insurance Company.All rights reserved. CA 88 10 0110 Includes copyrighted material of Insurance Services Office,with its permission. Page 7 of 7 This page has been left blank intentionally. City + en Rusin �.+ic- ET .WASH 1 N�T'Q'N, I. HO il. DRILLING INC PO BOX IQO GtA�3LEM, A 9833& t �'l'e s`e 1 ii ear o t`iv .1. ....:i .�.. «.�„ ll� : BA �, z I, �B� �' $;Z.�4 HOC 88�g �! 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