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HomeMy WebLinkAboutCAG2020-089 - Original - Integra Washington, Inc. - Clark Spring Habitat Conservation Measures - Valuation Services - 03/10/2020 Agreement Routing Form 00�• For Approvals,Signatures and Records Management KENT This form combines&replaces the Request for Mayor's Signature and Contract Cover Sheet forms. WAS H IN G T O N (Print on pink or cherry colored paper) Originator: Department: Nancy Yoshitake for Dee Martindale Public Works Date Sent: Date Required: > 3/11/20 3/13/20 0 aAuthorized to Sign: Date of Council Approval: Q 0 Director or Designee ❑ Mayor N/A Budget Account Number: Grant? ❑Yes 0 No W20005 Budget? 0 Yes ❑ No Type: Vendor Name: Category: Integra Washington, Inc. Contract Vendor Number: Sub-Category: = 252470 C)r x�na O ''a Project Name: Clark Springs Habitat Conservation Measures E 0 Project Details:Valuation services for McElderry, Hawks, Hanson, and Cave properties. c a� E Agreement Amount: $16,000 Basis for Selection of Contractor: N i Start Date: 3/10/20 Termination Date: 3/1/21 Q Local Business? ❑Yes 0 No* *Ifineets requirements perKCC3.70.100,please complete"Vendor Purchase-Local Exceptions"form on Cityspoce. Notice required prior to disclosure? Contract Number: ❑Yes 0 No la 20 2c) Date Received by City Attorney: Comments: C1 C 3 0 cc a •� i d � f0 C 01 Date Routed to the Mayor's Office: Vf Date Routed to the City Clerk's Office: ad¢W22373_1_20 Visit Documents.KentWA.gov to obtain copies of all agreements KENT WAs �ro PROFESSIONAL SERVICES AGREEMENT between the City of Kent and Integra Washington, Inc. THIS AGREEMENT is made between the City of Kent, a Washington municipal corporation (hereinafter the "City"), and Integra Washington, Inc. organized under the laws of the State of Washington, located and doing business at 600 University St., Suite 310, Seattle, WA 98101, Phone: (206) 903-6700, Contact: Lori Safer (hereinafter the "Contractor"). I. DESCRIPTION OF WORK. Contractor shall perform the following services for the City: The Contractor shall provide valuation services for the Clark Springs Habitat Conservation Measures Project - McElderry, Hawks, Hanson, and Cave properties. For a description, see the Contractor's Scope of Work which is attached as Exhibit A and incorporated by this reference. 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 those services are performed. II. TIME OF COMPLETION. The parties agree that work will begin on the tasks described in Section I above immediately upon the effective date of this Agreement, and Contractor shall complete the work by March 1, 2021. III. COMPENSATION. The City shall pay Contractor a total amount not to exceed Sixteen Thousand Dollars ($16,000) for the services described in this Agreement. The Contractor shall invoice the City monthly based on time and materials incurred during the preceding month. The hourly rates charged for Contractor's services shall be as delineated in the attached and incorporated Exhibit A. All hourly rates charged shall remain locked at the negotiated rates throughout the term of this Agreement. 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, 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. PROFESSIONAL SERVICES AGREEMENT - 1 ($20,000 or Less) 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 maintains a set of books dedicated to the expenses and earnings of its business. V. TERMINATION. Either party may terminate this Agreement, with or without cause, upon providing the other party seven (7) calendar days written notice at its address set forth on the signature block of this Agreement. VI. DISCRIMINATION. In the hiring of employees for the performance of work under this Agreement or any subcontract, the Contractor, its subcontractors, or any person acting on behalf of the Contractor or subcontractor shall not discriminate against any person who is qualified and available to perform the work to which the employment relates as provided for by the City of Kent's Equal Employment Opportunity Policy. 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. VII. INDEMNIFICATION. Contractor shall 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. 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. The provisions of this section shall survive the expiration or termination of this Agreement. 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. VIII. 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. IX. CONTRACTOR'S WORK AND RISK. 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 services. 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. X. 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. PROFESSIONAL SERVICES AGREEMENT - 2 ($20,000 or Less) 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 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 VII 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. 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. 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. Public Records Act. The Contractor acknowledges that the City is a public agency subject to the Public Records Act codified in Chapter 42.56 of the Revised Code of Washington and documents, notes, emails, and other records prepared or gathered by the Contractor in its performance of this Agreement may be subject to public review and disclosure, even if those records are not produced to or possessed by the City of Kent. As such, the Contractor agrees to cooperate fully with the City in satisfying the City's duties and obligations under the Public Records Act. 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. PROFESSIONAL SERVICES AGREEMENT - 3 ($20,000 or Less) 1 Counterparts and Signatures by Fax or Email, This Agreement may be executed in any number of counterparts, each of which shall constitute an original, and all of which will together constitute this one Agreement. Further, upon executing this Agreement, either party may deliver the signature page to the other by fax or email and that signature shall have the same force and effect as if the Agreement bearing the original signature was received in person. IN WITNESS, the parties below execute this Agreement, which shall become effective on the last date entered below. All acts consistent with the authority of this Agreement and prior to its effective date are ratified and affirmed, and the terms of the Agreement shall be deemed to have applied. CONTRACTO CITY OF KENT: ey: By: / (si atwe) Print Name: Lzllrll cx ".. d Print Name: Timothy J. LaPorte, P.E. Its: Public Works Director (rite DATE: DATE:T��`? /L� NOTICES TO BE SENT TO: NOTICES TO BE SENT TO: CONTRACTOR: CITY OF KENT: i Lor Safer Timothy ]. LaPorte, P.E. Integra Washington, Inc. City of Kent 600 University St., Suite 310 220 Fourth Avenue South Seattle, WA 98101 Kent, WA 98032 (206) 903-6700 (telephone) (253) 856-5500 (telephone) (206) 623-5731 (facsimile) (253) 856-6500 (facsimile) ATTE T: a Kent City Clerk PROFESSIONAL SERVICES AGREEMENT- 4 ($20,000 or Less) DECLARATION CITY OF KENT EQUAL EMPLOYMENT OPPORTUNITY POLICY The City of Kent is committed to conform to Federal and State laws regarding equal opportunity. As such all contractors, subcontractors and suppliers who perform work with relation to this Agreement shall comply with the regulations of the City's equal employment opportunity policies. The following questions specifically identify the requirements the City deems necessary for any contractor, subcontractor or supplier on this specific Agreement to adhere to. An affirmative response is required on all of the following questions for this Agreement to be valid and binding. If any contractor, subcontractor or supplier willfully misrepresents themselves with regard to the directives outlines, it will be considered a breach of contract and it will be at the City's sole determination regarding suspension or termination for all or part of the Agreement; The questions are as follows: 1. I have read the attached City of Kent administrative policy number 1.2. 2. During the time of this Agreement I will not discriminate in employment on the basis of sex, race, color, national origin, age, or the presence of all sensory, mental or physical disability. 3. During the time of this Agreement the prime contractor will provide a written statement to all new employees and subcontractors indicating commitment as an equal opportunity employer. 4. During the time of the Agreement I, the prime contractor, will actively consider hiring and promotion of women and minorities. 5. Before acceptance of this Agreement, an adherence statement will be signed by me, the Prime Contractor, that the Prime Contractor complied with the requirements as set forth above. By signing below, I agree to fulfill the five /requirements referenced above. Dated this = day of 20 �. A t By: _.. �,_ For: , r Liz- iz— Title: 1- V)�Z'(.1- Date: � A3' EEO COMPLIANCE DOCUMENTS - 1 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. EEO COMPLIANCE DOCUMENTS - 2 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. Dated this day of , 20 By: For: Title: Date: EEO COMPLIANCE DOCUMENTS - 3 } EXHIBIT A Integra Realty Resources 600 University Street T 206,903,6700 >,_.., Suite 310 F 206.623.5731 Seattle,WA 98101 www.irr.com r ir7 a . February 25, 2020 Dee Martindale Project Analyst And Cheryl Rolcik-Wilcox Property&Acquisition Analyst City of Kent 400 West Gowe Kent,Washington 98032 SUBJECT: Proposal for Valuation Services Project No. 13-3007 SE 269th Street, Ravensdale, King County,WA 98051 Dear Ms. Martindale and Ms. Rolcik-Wilcox: Integra Realty Resources—Seattle appreciates the opportunity to provide this proposal for valuation services to the undersigned (the"Client")for the subject properties, identified in the table below. Property Information King County Site Size Project Number Parcel No. Owner Address *res) budding Info Appraisal Fee 13-3007/PW2019-010 252206-9104 McElderry 26010 SE 269th Street 1.0g 1974 SFR 54,000 13-3007/PW2019-011 252206-9084 Hawks 26020 SE 269th Street 1.36 Mobile Home&shop/storage shed $4,000 13-3007/PW2019-012 2S2206-9106 Hanson 26110 SE 269th Street 1.23 1954 SFR $4,000 13-3007/PW2019-014 25220b-9110 Cave 26805 262nd Avenue SE 1.07 Mobile Home $4,000 Total Fee $16,000 The purpose of the appraisal is to provide an opinion of the market value of the fee simple interest in the Subject Properties. The intended use of the appraisal is for property acquisition purposes. The appraisal will be prepared in conformance with and subject to, the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice(USPAP) developed by the Appraisal Standards Board of the Appraisal Foundation. City of Kent February 25, 2020 Page 2 The Ethics Rule of USPAP requires us to disclose to you any prior services we have performed regarding the Subject Property within a three-year period immediately preceding the acceptance of this assignment, either as an appraiser or in any other capacity.We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment. In accordance with our correspondence,the scope of this assignment will require IRR— Seattle to consider all relevant and applicable approaches to value as determined during the course of our research,subject property analysis and preparation of the report. The appraisal will be communicated in an Summary/Standard Format. The total fee for this assignment will be$16,000 inclusive of expenses,for all four appraisal reports.The report(s) will be completed and delivered to you within 45 days from authorization to proceed. An electronic copy of the report(s) (PDF format)will be provided,along with one hard copy if requested.Additional hard copies of the report(s) are available at an additional cost of $100 per copy. Additional fees will be charged on an hourly basis for any work which exceeds the scope of this proposal, including performing additional valuation scenarios,additional research and conference calls or meetings with any party which exceed the time allotted for an assignment of this nature. Hourly Rates Job Title Hourly Rate Executive Director $350/hour Senior Managing Director/Managing Director $325/hour Senior Analyst $200 to$250 Analyst $150/hour Researcher $90/hour Production Support $60/hour The appraisal report(s)will be limited by our standard Assumptions and Limiting Conditions and any extraordinary assumptions and limiting conditions, which become apparent or necessary during the course of the assignment.A copy of the standard Assumptions and Limiting Conditions is set forth in Attachment I. In the event the Client provides a copy of this appraisal to, or permits reliance thereon by, any person or entity not authorized by Integra-Seattle,the Client agrees to indemnify and hold harmless Integra -Seattle, its affiliates and its shareholders,directors,officers and employees,from and against all damages, expenses,claims and costs, including attorneys' fees, incurred in investigating and defending any claim arising from or in any way connected to the use of,or reliance upon,the review appraisal by any such unauthorized person or entity. City of Kent February 25, 2020 Page 3 Thank you for considering us for this assignment and we look forward to working with you. Please call if you wish to discuss this proposal or the assignment any further. Sincerely, INTEGRA REALTY RESOURCES—SEATTLE Lori Safer, MAI,AI-GRS Managing Director Attachments City of Kent February 25, 2020 Page 4 ATTACHMENT 1 STANDARD ASSUMPTIONS&LIMITING CONDITIONS The appraisal report and any work product related to the engagement will be limited by the following standard assumptions: 1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The Subject Property is under responsible ownership and competent management and is available for its highest and best use. 2. There are no existing judgments or pending or threatened litigation that could affect the value of the Subject Property. 3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the Subject Property more or less valuable. Furthermore, there is no asbestos in the Subject Property. 4. The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct relation to the actual dollar amount of the transaction. 5. The Subject Property is in compliance with all applicable building, environmental, zoning, and other federal,state and local laws, regulations and codes. 6. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. The appraisal report and any work product related to the engagement will be subject to the following limiting conditions,except as otherwise noted in the report: 1. An appraisal is inherently subjective and represents our opinion as to the value of the Subject Property appraised. 2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. 3. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code)are anticipated. 4. No environmental impact studies were either requested or made in conjunction with this appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. 5. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the Subject Property without compensation relative to such additional employment. 6. We have made no survey of the Subject Property and assume no responsibility in connection with such matters. Any sketch or survey of the Subject Property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size.The appraisal covers City of Kent February 25, 2020 Page 5 the Subject Property as described in this report, and the areas and dimensions set forth are assumed to be correct. 7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the Subject Property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal. 8. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations, such as soils and seismic stability, and civil, mechanical, electrical, structural and other engineering and environmental matters. Such considerations may also include determinations of compliance with zoning and other federal, state, and local laws, regulations and codes. 9. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the Subject Property.The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 10. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the persons signing the report. 11. Information, estimates and opinions contained in the report and obtained from third-party sources are assumed to be reliable and have not been independently verified. 12. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results. 13. If the Subject Property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the Subject Property at the time these leases expire or otherwise terminate. 14. Unless otherwise stated in the report, no consideration has been given to personal property located on the Subject Property or to the cost of moving or relocating such personal property; only the real property has been considered. 15. The current purchasing power of the dollar is the basis for the value stated in the appraisal; we have assumed that no extreme fluctuations in economic cycles will occur. 16. The values found herein are subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions. 17. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic City of Kent February 25, 2020 Page 6 conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates,and the variations may be material. 18. The Americans with Disabilities Act(ADA) became effective January 26, 1992.We have not made a specific survey or analysis of the Subject Property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the Subject Property with ADA regulations. Inasmuch as compliance matches each owner's financial ability with the cost to cure the non- conforming physical characteristics of a property, a specific study of both the owner's financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. 19. The appraisal report is prepared for the exclusive benefit of you, your subsidiaries and/or affiliates. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk. 20. No studies have been provided to us indicating the presence or absence of hazardous materials on the Subject Property or in the improvements, and our valuation is predicated upon the assumption that the Subject Property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the Subject Property. IRR—Seattle and/or any of its officers, owners, managers, directors, agents, subcontractors or employees (the "Integra Parties") shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the Subject Property, 21. The persons signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the Subject Property is located in an identified Special Flood Hazard Area. However, we are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the Subject Property, and the value conclusion is predicated on the assumption that wetlands are non-existent or minimal. 22. We are not a building or environmental inspector. The Integra Parties do not guarantee that the Subject Property is free of defects or environmental problems. Mold may be present in the Subject Property and a professional inspection is recommended. 23. The appraisal report and value conclusions for an appraisal assumes the satisfactory completion of construction, repairs or alterations in a workmanlike manner. 24. IRR—Seattle is an independently owned and operated company. The parties hereto agree that Integra Realty Resources, Inc. ("Integra") shall not be liable for any claim arising out of or relating to any appraisal report or any information or opinions contained therein as such appraisal report is the sole and exclusive responsibility of IRR — Seattle. In addition, it is expressly agreed that in any action which may be brought against the Integra Parties arising out of, relating to, or in any way pertaining to the engagement letter, the appraisal reports or any City of Kent February 25,2020 Page 7 related work product,the Integra Parties shall not be responsible or liable for any incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with intentional misconduct. It is further expressly agreed that the collective liability of the Integra Parties in any such action shall not exceed the fees paid for the preparation of the assignment (unless the appraisal was fraudulent or prepared with intentional misconduct). It is expressly agreed that the fees charged herein are in reliance upon the foregoing limitations of liability. 25. IRR—Seattle is an independently owned and operated company,which has prepared the appraisal for the specific intended use stated elsewhere in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client's use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report or any other work product related to the engagement (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report(even if their reliance was foreseeable). 26. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer-seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. Integra Realty Resources Inc. are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of the Subject Property. 27. All prospective value opinions presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. in addition to the contingencies noted in the preceding paragraph,several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions,etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. As will be determined during the course of the assignment, additional extraordinary or hypothetical conditions may be required in order to complete the assignment. The appraisal shall also be subject to those assumptions. EXHIBIT B INSURANCE REQUIREMENTS FOR CONSULTANT SERVICES AGREEMENTS Insurance The Consultant 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 Consultant, their agents, representatives, employees or subcontractors. A. Minimum Scope of Insurance Consultant shall obtain insurance of the types described below: 1. Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal injury and advertising injury, and liability assumed under an insured contract. The City shall be named as an insured under the Consultant's Commercial General Liability insurance policy with respect to the work performed for the City using ISO additional insured endorsement CG 20 10 11 85 or a substitute endorsement providing equivalent coverage. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. 4. Professional Liability insurance appropriate to the Consultant's profession. B. Minimum Amounts of Insurance Consultant shall maintain the following insurance limits: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. 2. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate and a $1,000,000 products-completed operations aggregate limit. EXHIBIT B (Continued) 3. Professional Liability insurance shall be written with limits no less than $1,000,000 per claim and $1,000,000 policy aggregate limit. 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 insurance: 1. The Consultant'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 Consultant's insurance and shall not contribute with it. 2. The Consultant'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 Consultant 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 Consultant'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. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than ANII. E. Verification of Coverage Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. F. Subcontractors Consultant 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 Consultant. AC" CERTIFICATE OF LIABILITY INSURANCE FDATE(MM/DD/YYYY) 02/19/2020 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 have ADDITIONAL INSURED provisions or 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 Carrie Ovrid NAME: Conover Insurance AICONNo Ext: (425)455-5000 A/C No: (425)454-5550 155 108th Avenue NE,Suite 725 E-MAIL carrieo@conoverinsurance.com ADDRESS: P.O.Box 90007 INSURER(S)AFFORDING COVERAGE NAIC# Bellevue WA 98004 INSURER A: Mutual of Enumclaw Insurance Company 14761 INSURED INSURER B INTEGRA WASHINGTON INC INSURER C: 600 UNIVERSITY ST INSURER D: STE 310 INSURER E: SEATTLE WA 98101 INSURER F. COVERAGES CERTIFICATE NUMBER: 20-21 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 MAYBE 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 PAID CLAIMS. IN SR ADDLISUBR POLICY EFF P LI Y EXP LTR TYPE OF INSURANCE IN SD WVD POLICY NUMBER MM/DD/YYYY MMIOD/YYYY LIMITS X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 2,000,000 CLAIMS-MADE OCCUR PREMISES Ea occu enos $ 100,000 MED EXP(Any one person) $ 10,000 A Y BOP0001383 03/14/2020 03/14/2021 PERSONAL 8 ADV INJURY $ GEN'LAGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 4,000,000 X POLICY ❑ PRO- JECT LOC PRODUCTS-COMP/OPAGG $ 2,000,000 OTHER: $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ 2,000,000 Ea accident ANY AUTO BODILY INJURY(Per person) $ A OWNED SCHEDULED BOP0001383 03/14/2020 03/14/2021 BODILY INJURY(Per accident) $ AUTOS ONLY AUTOS X HIRED NON-OWNED PROPERTY DAMAGE AUTOS ONLY H AUTOS ONLY Per accident $ X UMBRELLA LIAB OCCUR EACH OCCURRENCE $ 1,000,000 A EXCESS LIAR HCLAIMS-MADE UMC0000555 03/14/2020 03/14/2021 AGGREGATE $ 1,000,000 DED I I RETENTION $ $ WORKERS COMPENSATION PER OTH- WA Stop Gap AND EMPLOYERS'LIABILITY Y/N STATUTE X ER A ANY PROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT $ 2,000,000 OFFICER/MEMBER EXCLUDED? ❑ N/A BOP0001383 03/14/2020 03/14/2021 (Mandatory in NH)and E.L.DISEASE-EA EMPLOYEE $ 2,000,000 If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ 2,000,000 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) City of Kent is an additional insured.Forms;#EB9901 1219 Businessowners Enhancement Endorsement with Blanket Additional Insured;#BP1488 0713 Primary and Noncontributory-Other Insurance Condition. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF,NOTICE WILL BE DELIVERED IN City of Kent ACCORDANCE WITH THE POLICY PROVISIONS. 220 Fourth Avenue South AUTHORIZED REPRESENTATIVE Kent WA 98032 ©1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD A��® DATE(MM/DD/YYYY) ��. CERTIFICATE OF LIABILITY INSURANCE F2/28/2020 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 have ADDITIONAL INSURED provisions or 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 NAME: LARealEstateCerts@ajg.com Arthur J. Gallagher&Co. PHONE FAX Insurance Brokers of CA. Inc LIC#0726293 X : 818-539-1247 A/C. /c No:818-539-1804 505 N. Brand Boulevard, Suite 600 ADDRESS: LARealEstateCerts@ajg.com Glendale CA 91203 INSURERS AFFORDING COVERAGE NAIC# INSURERA:Underwriters at Lloyd's,London 11230 INSURED INTEREA-03 INSURER B: Integra Washington, Inc. 600 University Street#310 INSURER C: Seattle, WA 98101 INSURER D: INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER:66007039 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 CONTRACT OR 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 PAID CLAIMS. TR TYPE OF INSURANCE INSD WVD POLICY NUMBER MM/DC/YYYY MM/DD//YYYY LIMITS COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ CLAIMS-MADE OCCUR DAMAGET RENTED PREMISES Ea occurrence $ MED EXP(Any one person) $ PERSONAL&ADV INJURY $ GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ PRO- POLICY JECTPRO- LOC PRODUCTS-COMP/OP AGG $ OTHER: $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ Ea accident ANY AUTO BODILY INJURY(Per person) $ OWNED SCHEDULED i P BODILY INJURY(Per accident) $ AUTOS ONLY AUTOS ( ) HIRED NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY Per accident q I $ UMBRELLA LIAB OCCUR EACH OCCURRENCE $ EXCESS LIAB CLAIMS-MADE AGGREGATE $ — 1 L � DED ' ' RETENTION$ $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS'LIABILITY Y/N STATUTE ER ANYPROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT $ OFFICERIMEMBEREXCLUDED? ❑ N/A (Mandatory In NH) E.L.DISEASE-EA EMPLOYEE $ If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ A Errors&Omissions MPL1531199.20 3/14/2020 3/14/2022 Each Claim $2,000,000 A Errors&Omissions MPL1542399.20 3/14/2020 3/14/2022 Aggregate Limit $10,000,000 A E&O Deductible Reimbursement PRFDR 46-APP200-30692-201 3/14/2020 3/14/2022 EaClaim/Aggregate' $150,000 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) Location:600 University Street,Ste 310,Seattle,WA 98101 Evidence only. 'Policy is subject to$25,000 Self Insured Rentenbon/Deductible payable by local office. This certificate of insurance is not a policy of insurance and does not affirmatively or negatively amend, extend or alter the coverage afforded by the policy to which the certificate of insurance makes reference. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City of Kent ACCORDANCE WITH THE POLICY PROVISIONS. 220 Fourth Avenue Kent WA 98032 AUTHORIZED REPRESENTATIVE USA ©1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD BUSINESSOWNERS BP 14 88 07 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PRIMARY AND NONCONTRIBUTORY - OTHER INSURANCE CONDITION This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following is added to Paragraph H. Other 2. You have agreed in writing in a contract or Insurance of Section III — Common Policy agreement that this insurance would be Conditions and supersedes any provision to the primary and would not seek contribution from contrary: any other insurance available to the additional Primary And Noncontributory Insurance insured. This insurance is primary to and will not seek contribution from any other insurance available to an additional insured under your policy provided that: 1. The additional insured is a Named Insured under such other insurance; and BP 14 88 07 13 © Insurance Services Office, Inc., 2012 Page 1 of 1 BUSINESSOWNERS EB 99 01 12 19 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BUSINESSOWNERS ENHANCEMENT ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM (The Coverages and Limits shown below are subject to the terms and conditions found in the remainder of this Endorsement.) Schedule 1. Covered Property Signs attached to buildings and business personal property. 2. Additional Coverages Limits of Insurance a. Debris Removal $25,000 b. Preservation of Property 60 days c. Fire Department Service Charge $15,000 d. Collapse Refer to Page 3 e. Water Damage, Other Liquids, Powder Or Molten Material Damage Refer to Page 4 f. Business Income Actual Loss Sustained g. Extra Expense Actual Loss Sustained h. Pollutant Clean-Up And Removal $15,000 i. Civil Authority 4 weeks/72 hr. deductible j. Money Orders And "Counterfeit Money" $5,000 k. Employee Dishonesty $15,000 I. Forgery Or Alteration $15,000 m. Ordinance Or Law Coverage-Blanket-Coverages 1, 2 and 3 $100,000 n. Business Income From Dependent Properties $10,000 o. Glass Expenses Refer to Page 9 p. Fire Extinguisher Systems Recharge Expense $10,000 q. Electronic Data $25,000 r. Interruption Of Computer Operations $25,000 s. Limited Coverage For"Fungi", Wet Rot Or Dry Rot $15,000 t. Lock And Key Replacement $2,500 u. Utility Services $10,000 v. Reward Payment $10,000 w. Inventory And Loss Adjustment Expense $5,000 x. Back-Up of Sewers, Drains or Sumps $25,000 y. Money and Securities $10,000 Inside/$2,000 Outside z. Fine Arts $10,000 aa. Voluntary Parting $10,000 3. Coverage Extensions a. Newly Acquired Or Constructed Property Buildings $500,000 Business Personal Property $250,000 b. Personal Property Off-Premises Including Transportation $25,000 c. Outdoor Property $10,000/$1,000 per tree, shrub or plant d. Personal Effects And Property Of Others $2,500 per person/$10,000 maximum e. Valuable Papers and Records $25,000 On Premises/$5,000 Off Premises f. Accounts Receivable $25,000 On Premises/$5,000 Off Premises g. Detached Signs $10,000 h. Business Personal Property Temporarily In Portable Storage Units $10,000 4. Limits Of Insurance 5. Deductibles 6. Loss Payment 7. Optional Coverages 8. Other Insurance Condition 9. Definitions 10. Additional Insured-Building Owner 11. Blanket Additional Insured EB 9901 1219 Includes copyrighted material of Insurance Services Office, Inc.with its permission Page 1 of 20 The proximity limitation found anywhere within the Businessowners Policy is amended from "within 100 feet" of the described premises, to "within 1,000 feet" of the described premises. 1. The following is added to Paragraph A.1. - Covered insurance applicable to the Covered Property in Section I — Property of the Property that has sustained loss or Businessowners Coverage Form. damage. a. Buildings (b) Subject to Paragraph (3)(a) above, the (7)Signs attached to buildings. amount we will pay for debrisremoval expense is limited to 25/o of the sum of b. Business Personal Property the deductible plus the amount that we (6)Signs attached to buildings. pay for direct physical loss or damage 2. Paragraph 5. Additional Coverages in Section I — to the Covered Property that has Property is deleted in its entirety and replaced by sustained loss or damage. However, if the following: no Covered Property has sustained a. Debris Removal direct physical loss or damage, the most we will pay for removal of debris (1) Subject to Paragraphs (2), (3) and (4), we of other property (if such removal is will pay your expense to remove debris of covered under this Additional Covered Property and other debris that is Coverage) is $5,000 at each location. on the described premises, when such (4) We will pay up to an additional $25,000, debris is caused by or results from a unless a higher limit of insurance is shown Covered Cause of Loss that occurs during in the Declarations, for debris removal the policy period. The expenses will be paid expense, for each location, in any one only if they are reported to us in writing occurrence of physical loss or damage to within 180 days of the date of direct Covered Property, if one or both of the physical loss or damage. following circumstances apply: (2) Debris Removal does not apply to costs to: (a) The total of the actual debris removal (a) Remove debris of property of yours expense plus the amount we pay for that is not insured under this policy, or direct physical loss or damage property in your possession that is not exceeds the Limit of Insurance on the Covered Property; Covered Property that has sustained (b) Remove debris of property owned by or loss or damage. leased to the landlord of the building (b) The actual debris removal expense where your described premises are exceeds 25% of the sum of the located, unless you have a contractual deductible plus the amount that we pay responsibility to insure such property for direct physical loss or damage to and it is insured under this policy; the Covered Property that has (c) Remove any property that is Property sustained loss or damage. Not Covered, including property Therefore, if Paragraphs (4)(a) and/or addressed under the Outdoor Property (4)(b) apply, our total payment for direct Coverage Extension; physical loss or damage and debris (d) Remove property of others of a type removal expense may reach but will never that would not be Covered Property exceed the Limit of Insurance on the under this policy; Covered Property that has sustained loss (e) Remove deposits of mud or earth from or damage, plus $25,000. the grounds of the described premises, b. Preservation of Property (f) Extract "pollutants" from land or water, If it is necessary to move Covered Property or from the described premises to preserve it from (g) Remove, restore or replace polluted loss or damage by a Covered Cause of Loss, land or water. we will pay for any direct physical loss of or damage to that property: (3) Subject to the exceptions in Paragraph (4), (1) While it is being moved or while temporarily the following provisions apply: stored at another location; and (a) The most that we will pay for the total (2) Only if the loss or damage occurs within 60 of direct physical loss or damage plus days after the property is first moved. debris removal expense is the Limit of EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc.with its permission Page 2 of 20 c. Fire Department Service Charge (iii) Breakage of building glass; When the fire department is called to save or protect Covered Property from a Covered (iv) Weight of people or personal Cause of Loss, we will pay up to $15,000 for property; or service at each premises described in the (v) Weight of rain that collects on a Declarations. roof. Such limit is the most we will pay regardless of (3) This Additional Coverage — Collapse does the number of responding fire departments or not apply to: fire units, and regardless of the number or type (a) A building or any part of a building that of services performed. is in danger of falling down or caving in; This Additional coverage applies to your liability (b) A part of a building that is standing, for fire department service charges: even if it has separated from another (1) Assumed by contract or agreement prior to part of the building; or loss; or (c) A building that is standing or any part (2) Required by local ordinance. of a building that is standing, even if it d. Collapse shows evidence of cracking, bulging, The coverage provided under this Additional sagging, bending, leaning, settling, Coverage — Collapse applies only to an abrupt shrinkage or expansion. collapse as described and limited in (4) With respect to the following property: Paragraphs d.(1)through d.(7). (a) Awnings; (1) For the purpose of this Additional Coverage (b) Gutters and downspouts; — Collapse, abrupt collapse means an (c) Yard fixtures; abrupt falling down or caving in of a building or any part of a building with the (d) Outdoor swimming pools; result that the building or part of the (e) Piers, wharves and docks; building cannot be occupied for its intended (f) Beach or diving platforms or purpose. appurtenances; (2) We will pay for direct physical loss or damage to Covered Property, caused by (g) Retaining walls: and abrupt collapse of a building or any part of (h) Walks, roadways and other paved a building that is insured under this policy surfaces; or that contains Covered Property insured if an abrupt collapse is caused by a cause under this policy, if such collapse is caused of loss listed in Paragraphs (2)(a) through by one or more of the following: (2)(d), we will pay for loss or damage to (a) Building decay that is hidden from that property only if such loss or damage is view, unless the presence of such a direct result of the abrupt collapse of a decay is known to an insured prior to building insured under this policy and the collapse; property is Covered Property under this (b) Insect or vermin damage that is hidden policy. from view, unless the presence of such (5) If personal property abruptly falls down or damage is known to an insured prior to caves in and such collapse is not the result collapse; of abrupt collapse of a building, we will pay (c) Use of defective material or methods in for loss or damage to Covered Property construction, remodeling or renovation caused by such collapse of personal if the abrupt collapse occurs during the property only if: course of the construction, remodeling (a) The collapse of personal property was or renovation; caused by a cause of loss listed in (d) Use of defective material or methods in Paragraphs (2)(a) through (2)(d) of this construction, remodeling or renovation Additional Coverage; if the abrupt collapse occurs after the construction, remodeling or renovation (b) The personal property which collapses is complete, but only if the collapse is is inside a building; and caused in part by: (c) The property which collapses is not of (i) A cause of loss listed in Paragraph a kind listed in Paragraph (4), (2)(a) or(2)(b); regardless of whether that kind of (ii) One or more of the "specified property i considered property oS real property,to be personal causes of loss EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc.with its permission Page 3 of 20 The coverage stated in this paragraph (5) (i) The portion of the building which does not apply to personal property if you rent, lease or occupy; marring and/or scratching is the only (i i) The area within 1,000 feet of the damage to that personal property caused building or within 1,000 feet of the by the collapse. premises described in the (6) This Additional Coverage — Collapse does Declarations, whichever distance not apply to personal property that has not is greater(with respect to loss of or abruptly fallen down or caved in, even if the damage to personal property in the personal property shows evidence of open or personal property in a cracking, bulging, sagging, bending, vehicle); and leaning, settling, shrinkage or expansion. (iii)Any area within the building or at (7) This Additional Coverage — Collapse will the described premises, if that area not increase the Limits of Insurance pro- services, or is used to gain access vided in this policy. to, the portion of the building which (8) The term Covered Cause of Loss includes you rent, lease or occupy. the Additional Coverage — Collapse as (b) We will only pay for loss of Business described and limited in Paragraphs d.(1) Income that you sustain during the through d.(7). "period of restoration" and that occurs e. Water Damage, Other Liquids, Powder Or within 12 consecutive months, unless a Molten Material Damage revised period of indemnity is shown in the Declarations, after the date of direct If loss or damage caused by or resulting from physical loss or damage. We will only covered water or other liquid, powder or molten pay for ordinary payroll expenses for material occurs, we will also pay the cost to tear 60 days following the date of direct out and replace any part of the building or physical loss or damage, unless a structure to repair damage to the system or greater number of days is shown in the appliance from which the water or other Declarations. substance escapes. (c) Business Income means: We will not pay the cost to repair any defect that caused the loss or damage, but we will pay (i) Net Income (Net Profit Loss the cost to repair or replace damaged parts of before income taxes thatt would i fire extinguishing equipment if the damage: have been earned or incurred if no physical loss or damage had (1) Results in discharge of any substance from occurred, but not including any Net an automatic fire protection system; or Income that would likely have been (2) Is directly caused by freezing. earned as a result of an increase in f. Business Income the volume of business due to (1) Business Income favorable business conditions caused by the impact of the (a) We will pay for the actual loss of Covered Cause of Loss on Business Income you sustain due to customers or on other businesses; the necessary suspension of your and "operations" during the "period of (i i) Continuing normal operating restoration". The suspension must be caused by direct physical loss of or expenses incurred, including damage to property at the described payroll. premises. The loss or damage must be (d) Ordinary payroll expenses: caused by or result from a Covered (i) Means payroll expenses for all Cause of Loss. With respect to loss of your employees except: or damage to personal property in the I. Officers; open or personal property in a vehicle, the described premises include the H. Executives; area within 1,000 feet of such iii. Department Managers; premises. iv. Employees under contract; With respect to the requirements set and forth in the preceding paragraph, if you v. Additional Exemptions shown occupy only part of a building, your in the Declarations as: premises means: EB 99 01 12 19 Includes copyrighted material of Insurance Services Office,Inc.with its permission Page 4 of 20 • Job Classifications; or (4) This Additional Coverage is not subject to • Employees. the Limits of Insurance of Section I — li Include: Property. I. Payroll; g. Extra Expense ii. Employee benefits, if directly (1) We will pay necessary Extra Expense you related to payroll; incur during the "period of restoration" that you would not have incurred if there had iii. FICA Payments you pay; been no direct physical loss or damage to iv. Union dues you pay; and property at the described premises. The v. Workers' compensation loss or damage must be caused by or result premiums. from a Covered Cause of Loss. With respect to loss of or damage to personal (2) Extended Business Income property in the open or personal property in (a) If the necessary suspension of your a vehicle, the described premises include "operations" produces a Business the area within 1,000 feet of such premises. Income loss payable under this policy, With respect to the requirements set forth we will pay for the actual loss of in the preceding Business Income you incur during the p g paragraph, if you occupy only part of a building, your premises period that: means: (i) Begins on the date property except (a) The portion of the building which you finished stock is actually repaired, rent, lease or occupy,- rebuilt or replaced and (b) The area within 1,000 feet of the "operations" are resumed; and building or within 1,000 feet of the (ii) Ends on the earlier of: premises described in the i. The date you could restore Declarations, whichever distance is your "operations", with greater (with respect to loss of or reasonable speed, to the level damage to personal property in the which would generate the open or personal property in a vehicle); Business Income amount that and would have existed if no direct (c) Any area within the building or at the physical loss or damage had described premises, if that area occurred; or services, or is used to gain access to, ii. 60 consecutive days after the the portion of the building which you date determined in Paragraph rent, lease of occupy. (a)(i)above. (2) Extra Expense means expense incurred: However, Extended Business Income (a) To avoid or minimize the suspension of does not apply to loss of Business business and to continue"operations": Income incurred as a result of unfavorable business conditions (i) At the described premises; or caused by the impact of the Covered (ii) At the replacement premises or at Cause of Loss in the area where the temporary locations, including described premises are located. relocation expenses, and costs to (b) Loss of Business Income must be equip and operate the replacement caused by direct physical loss or or temporary locations, damage at the described premises (b) To minimize the suspension of caused by or resulting from any business if you cannot continue Covered Cause of Loss. "operations". (3) With respect to the coverage provided in (c) To: this Additional Coverage, suspension (i) Repair or replace any property; or means: (ii) Research, replace or restore the (a) The partial slowdown or complete lost information on damaged cessation of your business activities; or "valuable papers and records"; (b) That a part or all of the described To the extent it reduces the amount of premises is rendered untenantable, if loss that otherwise would have been coverage for Business Income applies. payable under this Additional Coverage or Additional Coverage f. Business Income. EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc.with its permission Page 5 of 20 3) With respect to the coverage provided in of the Covered Cause of Loss that caused this Additional Coverage, suspension the damage, or the action is taken to means: enable a civil authority to have unimpeded (a) The partial slowdown or complete access to the damaged property. cessation of your business activities, or Civil Authority Coverage for Business Income (b) That part or all of the described will begin 72 hours after the time of the first premises is rendered untenantable, if action of civil authority that prohibits access to coverage for Business Income applies. the described premises and will apply for a period of up to four consecutive weeks from the (4) We will only pay for Extra Expense that date on which such coverage began. occurs within 12 consecutive months, unless a revised period of indemnity is Civil Authority Coverage for necessary Extra shown in the Declarations, after the date of Expense will begin immediately after the time direct physical loss or damage. of the first action of civil authority that prohibits access to the described premises and will end: This Additional Coverage is not subject to the Limits of Insurance of Section I — (1) Four consecutive weeks after the date of Property. that action; or h. Pollutant Clean-up And Removal (2) When your Civil Authority Coverage for We will pay your expense to extract"pollutants" Business Income ends; from land or water at the described premises if whichever is later. the discharge, dispersal, seepage, migration, The definitions of Business Income and Extra release or escape of the "pollutants" is caused Expense contained in the Business Income and by or results from a Covered Cause of Loss Extra Expense Additional Coverages also that occurs during the policy period. The apply to this Civil Authority Additional expenses will be paid only if they are reported Coverage. The Civil Authority Additional to us in writing within 180 days of the date on Coverage is not subject to the Limits of which the Covered Cause of Loss occurs. Insurance of Section I—Property. This Additional Coverage does not apply to j. Money Orders And "Counterfeit Money" costs to test for, monitor or assess the We will pay for loss resulting directly from your existence, concentration or effects of having accepted in good faith, in exchange for "pollutants But we will pay for testing which is merchandise, "money" or services: performed in the course of extracting the "pollutants" from the land or water. (1) Money orders issued by any post office, express company or bank that are not paid The most we will pay for each location under upon presentation; or this Additional Coverage is $15,000 for the sum of all such expenses arising out of Covered (2) "Counterfeit money" that is acquired during Causes of Loss occurring during each separate the regular course of business. 12-month period of this policy. The most we will pay for any loss under this i. Civil Authority Additional Coverage is $5,000. When a Covered Cause of Loss causes No Deductible applies to this Additional damage to property other than property at the Coverage. described premises, we will pay for the actual k. Employee Dishonesty loss of Business Income you sustain and (1) We will pay for direct loss of or damage to necessary Extra Expense caused by action of Business Personal Property and "money" civil authority that prohibits access to the and "securities" resulting from dishonest described premises, provided that both of the acts committed by any of your employees following apply: acting alone or in collusion with other (1) Access to the area immediately persons (except you or your partner) with surrounding the damaged property is the manifest intent to.- prohibited by civil authority as a result of (a) Cause you to sustain loss or damage; the damage, and the described premises and also are within that area but are not more than one mile from the damaged property; and (b) Obtain financial benefit (other than salaries, commissions, fees, bonuses, (2) The action of civil authority is taken in promotions, awards, profit sharing, response to dangerous physical conditions pensions or other employee benefits resulting from the damage or continuation earned in the normal course of employment for: EB 99 01 12 19 Includes copyrighted material of Insurance Services Office,Inc.with its permission Page 6 of 20 (i) Any employee; or (b) Any of your partners, officers or (ii) Any other person or organization. directors not in collusion with the (2) We will not pay for loss or damage: employee; of any dishonest act committed by that (a) Resulting from any dishonest or criminal act that you or any of your employee before or after being hired by partners commit whether acting alone you. or in collusion with other persons. (7) We will only pay for covered loss or (b) Resulting from any dishonest act damage sustained during the policy period committed by any of your employees and discovered no later than one year from (except as provided in Paragraph a.), the end of the Policy Period. "managers" or directors: (8) If you (or any predecessor in interest) sustained loss or damage during the period (i) Whether acting alone or in of any prior insurance that you could have collusion with other persons; or recovered under that insurance except that (ii) While performing services for you the time within which to discover loss or or otherwise. damage had expired, we will pay for it (c) The only proof of which as to its under this Additional Coverage, provided: existence or amount is: (a) This Additional Coverage became (i) An inventory computation; or effective at the time of cancellation or (ii) A profit and loss computation. termination of the prior insurance; and (d) Caused by an employee if the (b) The loss or damage would have been employee had also committed theft or covered by this Additional Coverage any other dishonest act prior to the had it been in effect when the acts or effective date of this policy and you or events causing the loss or damagewere committed or occurred. any of your partners, "members", "managers", officers, directors or With respect to the Employee Dishonesty trustees, not in collusion with the Additional Coverage, employee means: employee, learned of that theft or (a) Any natural person: dishonest act prior to the policy period (i) While in your services or for 30 shown in the Declarations. days after termination of service; (3) The most we will pay for loss or damage in (ii) Who you compensate directly by any one occurrence is: salary, wages or commissions; (a) $15,000; or and (b) the Limit of Insurance shown in the (iii) Who you have the right to direct Declarations for Employee Dishonesty; and control while performing whichever is greater. services for you; (4) All loss or damage: (b) Any natural person who is furnished (a) Caused by one or more persons; or temporarily to you: (b) Involving a single act or series of (i) To substitute for a permanent related acts; employee, as defined in Paragraph (1) above, who is on is considered one occurrence. leave; or (5) We will pay only for loss or damage you (ii) To meet seasonal or short-term sustain through acts committed or events workload conditions; occurring during the Policy Period. (c) Any natural person who is leased to Regardless of the number of years this you under a written agreement policy remains in force or the number of between you and a lab leasing firm, to premiums paid, no Limit of Insurance perform duties related to the conduct of cumulates from year to year or period to your business but does not mean a period, temporary employee as defined in (6) This Additional Coverage does not apply to Paragraph (b) above; any employee immediately upon discovery by: (d) Any natural person who is a former employee, director, partner, member, (a) You; or manager, representative or trustee retained as a consultant while performing services for you; or EB 99 01 12 19 Includes copyrighted material of Insurance Services Office,Inc.with its permission Page 7 of 20 (e) Any natural person who is a guest or compliance with any ordinance or student or intern pursuing studies or law that: duties, excluding, however, any such (i) Requires the demolition of parts of person while having care and custody the same property not damaged by of property outside any building you a Covered Cause of Loss; occupy in conducting your business. (ii) Regulates the construction or But employee does not mean: repair of buildings, or establishes (a) Any agent, broker, factor, commission zoning or land use requirements at merchant, consignee, independent the described premises; and contractor or representative of the iii Is in force at the time of loss. same general character; ( ) (b) Any "manager", director or trustee (b) Coverage 2 - Demolition Cost except while performing acts coming Coverage. within the usual duties of an employee. We will pay the cost to demolish and clear the site of undamaged parts of I. Forgery Or Alteration the property caused by enforcement of (1) We will pay for loss resulting directly from building, zoning or land use ordinance forgery or alteration of, any check, draft, or law. promissory note, bill of exchange or similar (c) Coverage 3 - Increased Cost of written promise of payment in "money", that Construction Coverage. you or your agent has issued, or that was issued by someone who impersonates you We will pay for the increased cost to or your agent. repair, rebuild or construct the property (2) if you are sued for refusing to pay the caused by enforcement of or compliance with building, zoning or check, draft, promissory note, bill of land use ordinance or law. If the exchange or similar written promise of property is repaired or rebuilt, it must payment in "money", on the basis that it be intended for similar occupancy as has been forged or altered, and you have the current property, unless otherwise our written consent to defend against the required by zoning or land use suit, we will pay for any reasonable legal ordinance or law. Coverage also expenses that you incur in that defense. applies if the ordinance or law requires (3) For the purpose of this coverage, check relocation to another premises. includes a substitute check as defined in However, we will not pay for the the Check Clearing for the 21 st Century increased cost of construction if the Act, and will be treated the same as the building is not repaired or replaced. original it replaced. (2) We will not pay under this endorsement for (4) The most we will pay for any loss, including the costs associated with the enforcement legal expenses, under this Additional of or compliance with any ordinance or law Coverage is: which requires any insured or others to test (a) $15,000; or for, monitor, clean up, remove, contain, (b) the Limit of Insurance shown in the treat, detoxify or neutralize, or in any way Declarations for Forgery Or Alteration; respond to, or assess the effects of whichever is greater. "pollutants." m. Ordinance Or Law Coverage (3) We will not pay under this endorsement for loss due to any ordinance or law that: This Additional Coverage applies only to (a) You were required to comply with buildings insured on a replacement cost basis. before the loss, even if the building Exclusion B.1.a. Ordinance Or Law in Section I was undamaged; and - Property is deleted. (b) You failed to comply with. (1) Coverage (4) The most we will pay under this Additional (a) Coverage 1 - Coverage for Loss to Coverage for loss or damage to Covered the Undamaged Portion of the Property is; Building. (a) $100,000 at each location; or If a Covered Cause of Loss occurs to (b) the Limit of Insurance shown in the Covered Building Property, we will pay Ordinance Or Law Coverage for loss to the undamaged portion of the building caused by enforcement of endorsement; whichever is greater. EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc.with its permission Page 8 of 20 n. Business Income From Dependent (b) Ends on the date when the property at Properties the premises of the dependent (1) We will pay for the actual loss of Business property should be repaired, rebuilt or Income you sustain due to physical loss or replaced with reasonable speed and damage at the premises of a dependent similar quality. property caused by or resulting from any (6) The Business Income coverage period, as Covered Cause of Loss. stated in Paragraph (5), does not include However, this Additional Coverage does any increased period required due to the not apply when the only loss at the enforcement of or compliance with any dependent property is loss or damage to ordinance or law that: "electronic data", including destruction or (a) Regulates the construction, use or corruption of "electronic data". If the repair, or requires the tearing down of dependent property sustains loss or any property; or damage to "electronic data" and other (b) Requires any insured or others to test property, coverage under this Additional for, monitor, clean up, remove, contain, Coverage will not continue once the other treat, detoxify or neutralize, or in any property is repaired, rebuilt or replaced. way respond to, or assess the effects The most we will pay under this Additional of"pollutants". Coverage is $10,000. The expiration date of this policy will not (2) We will reduce the amount of your reduce the Business Income coverage Business Income loss, other than Extra period. Expense, to the extent you can resume (7) The definition of Business Income "operations", in whole or in part, by using contained in the Business Income any other available: Additional Coverage also applies to this (a) Source of materials; or Business Income From Dependent (b) Outlet for your products. Properties Additional Coverage. (3) If you do not resume "operations", or do not o. Glass Expenses resume "operations" as quickly as possible, (1) We will pay for expenses incurred to put up we will pay based on the length of time it temporary plates or board up openings if would have taken to resume "operations" repair or replacement of damaged glass is as quickly as possible. delayed. (4) Dependent property means property (2) We will pay for expenses incurred to owned by others whom you depend on to: remove or replace obstructions when (a) Deliver materials or services to you, or repairing or replacing glass that is part of a to others for your account. But services building. This does not include removing or does not mean water supply services, replacing window displays. wastewater removal services, p. Fire Extinguisher Systems Recharge communication supply services or Expense power supply services; (1) We will pay: (b) Accept your products or services; (a) The cost of recharging or replacing, (c) Manufacture your products for delivery whichever is less, your fire to your customers under contract for extinguishers and fire extinguishing sale; or systems (including hydrostatic testing if (d) Attract customers to your business. needed) if they are discharged on or The dependent property must be located in within 100 feet of the described the coverage territory of this policy. premises; and (5) The coverage period for Business Income (b) For loss or damage to Covered under this Additional Coverage: Property if such loss or damage is the result of an accidental discharge of (a) Begins 72 hours after the time of direct chemicals from a fire extinguisher or a physical loss or damage caused by or fire extinguishing system. resulting from any Covered Cause of Loss at the premises of the dependent (2) No coverage will apply if the fire property; and extinguishing system is discharged during installation or testing. EB 99 01 12 19 Includes copyrighted material of Insurance Services Office,Inc.with its permission Page 9 of 20 (3) The most we will pay under this Additional Coverage, you may extend the insurance Coverage is $10,000 in any one that applies to Business Income and Extra occurrence. Expense to apply to a suspension of No Deductible applies to this Additional "operations" caused by an interruption in Coverage. computer operations due to destruction or corruption of "electronic data" due to a q. Electronic Date Covered Cause of Loss. (1) Subject to the provisions of this Additional (2) With respect to the coverage provided Coverage, we will pay for the cost to replace or restore "electronic data" which under this Additional Coverage, the Covered Causes of Loss are subject to the has been destroyed or corrupted by a Covered Cause of Loss. To the extent that following: "electronic data" is not replaced or (a) Coverage under this Additional restored, the loss will be valued at the cost Coverage — Interruption Of Computer of replacement of the media on which the Operations is limited to the "specified "electronic data" was stored, with blank causes of loss"and Collapse. media of substantially identical type. (b) If the Businessowners Coverage Form (2) The Covered Causes of Loss applicable to is endorsed to add a Covered Cause of Business Personal Property include a Loss, the additional Covered Cause of computer virus, harmful code or similar Loss does not apply to the coverage instruction introduced into or enacted on a provided under this Additional computer system (including "electronic Coverage. data") or a network to which it is connected, (c) The Covered Causes of Loss include a designed to damage or destroy any part of computer virus, harmful code or similar the system or disrupt its normal operation. instruction introduced into or enacted But there is no coverage for loss or damage on a computer system (including caused by or resulting from manipulation of "electronic data") or a network to which a computer system (including "electronic it is connected, designed to damage or data") by any employee, including a destroy any part of the system or temporary or leased employee, or by an disrupt its normal operation. But there entity retained by you, or for you, to is no coverage for an interruption inspect, design, install, modify, maintain, related to manipulation of a computer repair or replace that system. system (including "electronic data") by (3) The most we will pay under this additional any employee, including a temporary or Coverage — Electronic Data for all loss or leased employee, or by an entity damage sustained in any one policy year is retained by you, or for you, to inspect, $25,000, regardless of the number of design, install, modify, maintain, repair occurrences of loss or damage or the or replace that system. number of premises, locations or computer (3) The most we will pay under this Additional systems involved. If loss payment on the Coverage — Interruption Of Computer first occurrence does not exhaust this Operations is $25,000 for all loss sustained amount, then the balance is available for and expense incurred in any one policy subsequent loss or damage sustained in, year, regardless of the number of but not after, that policy year. With respect interruptions or the number of premises, to an occurrence which begins in one policy locations or computer systems involved. If year and continues or results in additional loss payment relating to the first loss or damage in a subsequent policy interruption does not exhaust this amount, year(s), all loss or damage is deemed to be then the balance is available for loss or sustained in the policy year in which the expense sustained or incurred as a result occurrence began. of subsequent interruptions in that policy (4) This Additional Coverage does not apply to year. A balance remaining at the end of a your"stock" of prepackaged software, or to policy year does not increase the amount "electronic data" which is integrated in and of insurance in the next policy year. With operates or controls a building's elevator, respect to any interruption which begins in lighting, heating, ventilation, air one policy year and continues or results in conditioning or security system. additional loss or expense in a subsequent r policy year(s), all loss and expense is . Interruption Of Computer Operations deemed to be sustained or incurred in the (1) Subject to all provisions of this additional policy year in which the interruption began. EB 99 01 12 19 Includes copyrighted material of Insurance Services Office,Inc.with its permission Page 10 of 20 (4) This Additional Coverage — Interruption Of completed, provided there is a reason Computer Operations does not apply to to believe that "fungi", wet rot or dry rot loss sustained or expense incurred after are present. the end of the "period of restoration", even (3) The coverage described under this Limited if the amount of insurance stated in (3) Coverage is limited to $15,000. Regardless above has not been exhausted. of the number of claims, this limit is the (5) Coverage for Business Income does not most we will pay for the total of all loss or apply when a suspension of"operations" is damage arising out of all occurrences of caused by destruction or corruption of "specified causes of loss" (other than fire or "electronic data", or any loss or damage to lightning) which take place in a 12-month "electronic data", except as provided under period (starting with the beginning of the Paragraphs (1) through (4) of this present annual policy period). With respect Additional Coverage. to a particular occurrence of loss which (6) Coverage for Extra Expense does not results in "fungi", wet rot or dry rot, we will apply when action is taken to avoid or not pay more than the total of$15,000 even minimize a suspension of "operations" if the "fungi", wet rot or dry rot continues to caused by destruction or corruption of be present or active, or recurs, in a later "electronic data", or any loss or damage to policy period. "electronic data", except as provided under (4) The coverage provided under this Limited Paragraphs (1) through (4) of this Coverage does not increase the applicable Additional Coverage. Limit of Insurance on any Covered (7) This Additional Coverage does not apply Property. If a particular occurrence results when loss or damage to "electronic data" in loss or damage by "fungi", wet rot or dry involves only "electronic data" which is rot, and other loss or damage, we will not integrated in and operates or controls a pay more, for the total of all loss or building's elevator, lighting, heating, damage, than the applicable Limit of ventilation, air conditioning or security Insurance on the affected Covered system. Property. s. Limited Coverage For "Fungi", Wet Rot Or If there is covered loss or damage to Dry Rot Covered Property, not caused by "fungi", wet rot or dry rot, loss payment will not be (1) The coverage described in Paragraphs limited by the terms of this Limited s.(2) and s.(6) only applies when the Coverage, except to the extent that "fungi", "fungi", wet rot or dry rot is the result of a wet rot or dry rot causes an increase in the "specified cause of loss" other than fire or loss. Any such increase in the loss will be lightning that occurs during the policy subject to the terms of this Limited period and only if all reasonable means Coverage. were used to save and preserve the (5) The terms of this Limited Coverage do not property from further damage at the time of increase or reduce the coverage provided and after that occurrence. under the Water Damage, Other Liquids, This Additional Coverage does not apply to Powder Or Molten Material Damage or lawns, trees, shrubs or plants which are Collapse Additional Coverages. part of a vegetated roof. (6) The following applies only if Business (2) We will pay for loss or damage by "fungi", Income and/or Extra Expense Coverage wet rot or dry rot. As used in this Limited applies to the described premises and only Coverage, the term loss or damage means: if the suspension of "operations" satisfies (a) Direct physical loss or damage to all the terms and conditions of the Covered Property caused by "fungi", applicable Business Income and/or Extra wet rot or dry rot, including the cost of Expense Additional Coverage. removal of the "fungi", wet rot or dry (a) If the loss which resulted in "fungi", wet rot; rot or dry rot does not in itself (b) The cost to tear out and replace any necessitate a suspension of part of the building or other property as "operations", but such suspension is needed to gain access to the "fungi", necessary due to loss or damage to wet rot or dry rot; and property caused by "fungi", wet rot or (c) The cost of testing performed after dry rot, then our payment under the removal, repair, replacement or Business Income and/or Extra restoration of the damaged property is Expense is limited to the amount of loss and/or expense sustained in a EB 99 01 12 19 Includes copyrighted material of Insurance Services office,Inc.with its permission Page 11 of 20 period of not more than 30 days. The (i) Pumping stations; days need not be consecutive. (ii) Water mains. (b) If a covered suspension of"operations" (b) Communication Supply Services, was caused by loss or damage other meaning property supply than "fungi", wet rot or dry rot, but communication services, including remediation of"fungi", wet rot or dry rot telephone, radio, microwave or prolongs the "period of restoration", we television services to the described will pay for loss and/or expense premises, such as: sustained during the delay (regardless of when such a delay occurs during the (i) Communication transmission "period of restoration"), but such lines, including optic fiber coverage is limited to 30 days. The transmission lines; days need not be consecutive. (ii) Coaxial cables; and t. Lock and Key Replacement (iii) Microwave radio relays except We will pay the cost of: satellites. (1) Premises entry key(s) replacement, if keys (c) Power Supply Services, meaning the are stolen; or following types of property supplying (2) Premises entry lock repair or replacement electricity, steam or gas to the described premises: made necessary by theft or attempted theft at the described premises. (i) Utility generating plants; The most we will pay under this Additional (ii) Switching stations; Coverage is $2,500 any one occurrence, (iii)Substations; unless a higher limit of insurance is shown in (iv)Transformers; the Declarations. No Deductible applies to this Additional (v) Transmissions lines. Coverage. (4) Exclusion BA.e.(1) in Section I - Property u. Utility Services does not apply to this Additional Coverage. We will pay for: (5) The most we will pay under this Additional (1) Direct physical loss or damage to Covered Coverage is: Property caused by an interruption of (a) $10,000 any one occurrence; or services to the described premises. The (b) the limit of insurance shown in the interruption must result from direct physical applicable Utility Services coverage loss or damage by a Covered Cause of endorsement; Loss to property described in Paragraph (3) whichever is greater. Utility Services that is located outside of a v. Reward Payment covered building described in the Declarations; and We will pay for reasonable expenses you incur for rewards that lead to: (2) The actual loss of Business Income or Extra Expense at the described premises (1) An arson conviction in connection with a caused by the interruption of services to the covered fire or explosion loss; or described premises, subject to the terms (2) A theft conviction in connection with a and conditions of the Business Income covered theft loss. and/or Extra Expense Additional The most we will pay under this Additional Coverages found in this endorsement. The coverage is $10,000 each occurrence, interruption must result from direct physical regardless of the number of persons providing loss or damage by a Covered Cause of information. Loss to property described in Paragraph (3) No Deductible applies to this Additional Utility Services that is located outside of a Coverage. covered building described in the Declarations. w. Inventory and Loss Adjustment Expenses (3) Utility Services include: We will pay up to $5,000 each occurrence for the cost of any inventory or appraisal required (a) Water Supply Services, meaning the as a result of direct physical loss or damage to following types of property supplying Covered Property caused by or resulting from water to the described premises: a Covered Cause of Loss. This Additional Coverage will not pay for expenses incurred in using the services of a public adjuster. EB 99 01 12 19 Includes copyrighted material of Insurance Services Office,Inc.with its permission Page 12 of 20 No Deductible applies to this Additional (b) Involving a single act or series of Coverage. related acts; x. Back-Up of Sewers, Drains or Sumps is considered one occurrence. We will pay for loss or damage to Covered (5) You must keep records of all "money" and Property caused by or resulting from water that "securities" so we can verify the amount of backs up or overflows from a sewer, drain or any loss or damage. sump. z. Fine Arts Exclusion B.1.g.(3) in Section 1 - Property does (1) We will pay for loss or damage to your"fine not apply to this Additional Coverage. arts"and "fine arts" owned by others in your The most we will pay under this Additional care, custody or control at covered Coverage is$25,000 each occurrence, unless a locations. We cover such property against higher limit of insurance is shown in the direct physical loss or damage from a Declarations. Covered Cause of Loss applying to your y. Money And Securities business personal property at the location. (1) We will pay for loss of "money" and (2) We will not pay for loss caused by "securities" used in your business while at processing of or work upon the covered a bank or savings institution, within your property including repairs or restoration. living quarters or the living quarters of your We will not pay for any reduction in the partners or any employee (including value of damaged property after the temporary or leased employee) having use damage has been repaired. and custody of the property, at the (3) The most we will pay for loss or damage in described premises, or in transit between any one occurrence is $10,000 subject to any of these places, resulting directly from: an Annual Policy Aggregate of$10,000. (a) Theft, meaning any act of stealing; The Business Personal Property (b) Disappearance; or deductible, as shown in the Declarations, applies to this Additional Coverage. (c) Destruction. (4) The value of fine arts will be the least of the (2) In addition to the Limitations and following amounts: Exclusions applicable to property (a) The actual cash value of that property; coverage, we will not pay for loss: (a) Resulting from accounting or (b) The cost of reasonably restoring that arithmetical errors or omissions; property to its condition immediately before loss; or (b) Due to the giving or surrendering of (c) The cost of replacing that property with property in any exchange or purchase;or substantially identical property. (c) Of property contained in any "money" - (5) In the event of loss, the value of the operated device unless the amount of property will be determined as of the time "money" deposited in it is recorded by of loss. a continuous recording instrument in (6) If there is other insurance covering the the device. same loss or damage provided by this (3) The most we will pay for loss in any one Additional Coverage, whether covered by this policy or any other policy, we will pay occurrence is: only for the amount of covered loss or (a) $10,000 for Inside the Premises for damage in excess of the amount due from "money" and "securities" while in or on that other insurance, but we will not pay the described premises or within a more than the applicable limit of insurance bank or savings institution and $2,000 shown in Paragraph (3)above. for Outside the Premises for "money" aa. Voluntary Parting and "securities" while anywhere else, or We will pay for loss or damage to covered (b) the Limit of Insurance shown for Money property when you or your employees are and Securities in the Declarations; fraudulently induced to part with Covered whichever is greater. Property to or by: (4) All loss: (1) Persons who falsely represent themselves as the proper persons to receive the (a) Caused by one or more persons; or property; or (2) Acceptance of fraudulent bills of lading or shipping receipts. This additional coverage is not subject to the terms of the Voluntary Parting Exclusion. EB 99 01 12 19 Includes copyrighted material of Insurance Services Office,Inc.with its permission Page 13 of 20 The most we will pay under this Additional coverage will end when any of the following Coverage for loss or damage in any one first occurs: occurrence is $10,000. The limit is part of, not (a) This policy expires; in addition to, the applicable Limit of Insurance. (b) 90 days expire after you acquire the 3. Paragraph 6. Coverage Extensions in Section I — property or begin construction of that Property is deleted in its entirety and replaced by part of the building that would qualify as the following: Covered Property; or In addition to the Limits of Insurance of Section 1 — (c) You report values to us. Property, you may extend the insurance provided We will charge you additional premium for by this policy as provided below. Except as otherwise provided, the followingvalues reported from the date you acquire the property or begin construction of that Extensions apply to property located in or on the part of the building that would qualify as building described in the Declarations or in the open Covered Property. (or in a vehicle) within 1,000 feet of the described b. Personal Property Off-Premises premises. a. Newly Acquired Or Constructed Property You may extend the insurance that applies to Business Personal Property to apply to covered (1) Buildings Business Personal Property, other than If this policy covers Buildings, you may "money" and "securities" and "valuable papers extend that insurance to apply to: and records," while it is in the course of transit (a) Your new buildings while being built on or temporarily away from the described the described premises; and premises. The most we will pay for loss or damage under this Extension is $25,000, (b) Buildings you acquire at premises unless a higher limit of insurance is shown in other than the one described, intended the Declarations. for: (i) Similar use as the building c. Outdoor Property described in the Declarations; or You may extend the insurance provided by this policy to apply to your outdoor fences, radio (ii) Use as a warehouse. and television antennas (including satellite The most we will pay for loss or damage dishes), lawns, trees, shrubs and plants (other under this Extension is $500,000 at each than "stock" of trees, shrubs or plants or trees, building. shrubs or plants which are part of a vegetated (2) Business Personal Property roof), including debris removal expense, If this policy covers Business Personal caused by or resulting from any of the following Property, you may extend that insurance to causes of loss: apply to: (1) Fire; (a) Business Personal Property, including (2) Lightning; such property that you newly acquire, (3) Explosion; at any location you acquire; or (4) Riot or Civil Commotion; or (b) Business Personal Property, including (5) Aircraft. such property that you newly acquire, located at your newly constructed or The most we will pay for loss or damage under acquired buildings at the location this Extension is $10,000 but not more than described in the Declarations; or $1,000 for any one tree, shrub or plant. These limits apply to any one occurrence, regardless This Extension does not apply to personal of the types or number of items lost or property that you temporarily acquire in the damaged in that occurrence. course of installing or performing work on such property or your wholesale activities. Subject to all aforementioned terms and The most we will pay for loss or damage limitations of coverage, this Coverage under this Extension is $250,000 at each Extension includes the expense of removing from the described premises the debris of trees, building. shrubs and plants which are the property of (3) Period Of Coverage others, except in the situation in which you are With respect to insurance provided under a tenant and such property is owned by the this Coverage Extension for Newly landlord of the descried premises. Acquired Or Constructed Property, EB 99 01 12 19 Includes copyrighted material of Insurance Services Office,Inc.with its permission Page 14 of 20 d. Personal Effects and Property Of Others (5) Paragraph B. Exclusions in Section I — You may extend this insurance that applies to Property does not apply to this Coverage Business Personal Property to apply to: Extension except for: (1) Personal effects, including tools, owned by (a) Paragraph B.1.c., Governmental you, your officers, your partners or Action; "members", your "managers" or your (b) Paragraph B.1.d., Nuclear Hazard; employees, including temporary or leased (c) Paragraph B.1.f., War And Military employees. This extension does not apply Action; to loss or damage by theft. The most we will pay for loss or damage (d) Paragraph B.2.f., Dishonesty; under d.(1) is $2,500 per person up to a (e) Paragraph 13.2.g., False Pretense; maximum of $10,000 at each described (f) Paragraph B.2.m.(2), Errors Or premises. Omissions; and (2) Personal property of others in your care, (g) Paragraph 6.3. custody or control. f. Accounts Receivable The most we will pay for loss or damage (1) You may extend the insurance that applies under d.(2) is $2,500 at each described to Business Personal Property to apply to premises, unless a higher limit of insurance accounts receivable. We will pay: is shown in the Declarations for Personal Property Of Others. (a) All amounts due from your customers that you are unable to collect; e. Valuable Papers And Records(1) You may extend the insurance that applies (b) Interest charges on any loan required to offset amounts you are unable to to Business Personal Property to apply to collect pending our payment of these direct physical loss or damage to "valuable amounts; papers and records" that you own, or that are in your care, custody or control caused (c) Collection expenses in excess of your by or resulting from a Covered Cause of normal collection expenses that are Loss. This Coverage Extension includes made necessary by loss or damage; the cost to research, replace or restore the and lost information on "valuable papers and (d) Other reasonable expenses that you records"for which duplicates do not exist. incur to reestablish your records of (2) This Coverage Extension does not apply accounts receivable, to: that result from direct physical loss or (a) Property held as samples or for damage by any Covered Cause of Loss to delivery after sale; and your records of accounts receivable. (b) Property in storage away from the (2) The most we will pay under this Coverage premises shown in the Declarations. Extension for loss or damage in any one (3) The most we will pay under this Coverage occurrence at the described premises is$25,000. This limit is in addition to any Extension for loss or damage to "valuable amount shown in the Declarations. papers and records" in any one occurrence For accounts receivable not at the at the described premises is $25,000. This limit is in addition to any amount shown in described premises, the most we will pay is the Declarations. $5,000. For "valuable papers and records" not at (3) Paragraph B. Exclusions in Section I — the described premises, the most we will Property does not apply to this Coverage pay is$5,000. Extension except for: (4) Loss or damage to "valuable papers and (a) Paragraph 6.1.c., Governmental records" will be valued at the cost of Action; restoration or replacement of the lost or (b) Paragraph 13.1.d., Nuclear Hazard; damaged information. To the extent that (c) Paragraph B.1.f., War And Military the contents of the "valuable papers and Action; records" are not restored, the "valuable papers and records" will be valued at the (d) Paragraph 8.2.f., Dishonesty; cost of replacement with blank materials of (e) Paragraph 13.2.g., False Pretense; substantially identical type. (f) Paragraph B.3.; and EB 99 01 12 19 Includes copyrighted material of Insurance Services Office,Inc.with its permission Page 15 of 20 (g) Paragraph B.6., Accounts Receivable 90 consecutive days, even if the Exclusion. Business Personal Property has g. Detached Signs been stored there for 90 or fewer (1) We will pay for direct physical loss of or days as of the time of loss or damage. damage to all detached signs at the (4) Under this Extension, the most we will described "remises. pay for the total of all loss or damage (a) Owned by you; or to Business Personal Property is (b) Owned by others but in your care, $10,000 (unless a higher limit is custody or control, indicated in the Declarations for such (2) Paragraph A.3., Covered Causes Of Loss, Extension) regardless of the number of and Paragraph B., Exclusions in Section I storage units. — Property, do not apply to this Coverage (5) This Extension does not apply to loss Extension, except for: or damage otherwise covered under (a) Paragraph B.1.c., Governmental this Coverage Form or any Action; endorsement to this Coverage Form, and does not apply to loss or damage (b) Paragraph B.1.d., Nuclear Hazard; to the storage unit itself. and 4. Paragraph C. Limits Of Insurance in Section I — (c) Paragraph B.1.f., War and Military Property is deleted in its entirety and replaced by Action. the following: (3) We will not pay for loss or damage caused 1. The most we will pay for loss or damage in any by or resulting from: one occurrence is the Limits of Insurance of (a) Wear and tear; Section I — Property shown in the Declarations (b) Hidden or latent defect; or the limit shown in this endorsement, whichever is applicable. (c) Rust; 2. The amounts of insurance applicable to the (d) Corrosion; or Coverage Extensions and the following (e) Mechanical breakdown Additional Coverages apply in accordance with (4) The most we will pay for loss or damage in the terms of such coverages and are in addition any one occurrence is: to the Limits of Insurance of Section I — Property: (b) the Limit of Insurance shown in the a. Fire Department Service Charge; Declarations for Detached Signs; b. Pollutant Clean-up And Removal; whichever is greater. c. Ordinance Or Law; h. Business Personal Property Temporarily d. Business Income From Dependent In Portable Storage Units Properties; (1) You may extend the insurance that e. Electronic Data; and applies to Business Personal Property f. Interruption Of Computer Operations to apply to such property while 3. Building Limit—Automatic Increase temporarily stored in a portable storage unit (including a detached trailer) a. In accordance with Paragraph C.3.b., the located within 100 feet of the buildings Limit of Insurance for Bo'ildings willl to structures described i the automatically increase by 4/o, unless a Declarations or within described feet of the different percentage of annual increase is shown in the Declarations. described premises, whichever distance is greater. b. The amount of increase is calculated as (2) The limitation under Paragraph follows: A.4.a.(5) also applies to property in a (1) Multiply the Building limit that applied portable storage unit. on the most recent of the policy (3) Coverage under this Extension: inception date, the policy anniversary a Will end 90 days after the Business date, or any other policy change ( ) Y amending the Building limit by: Personal Property has been (a) The percentage of annual increase placed in the storage unit; shown in the Declarations, (b) Does not apply if the storage unit expressed as a decimal (example: itself has been in use at the 7/o is .07); or described premises for more than EB 99 01 12 19 Includes copyrighted material of Insurance Services Office,Inc.with its permission Page 16 of 20 (b) .04, if no percentage of annual to the following coverages is $500 any one increase is shown in the occurrence: Declarations; and a. Building Glass; (2) Multiply the number calculated in b. Employee Dishonesty; accordance with b.(1) by the number of c. Money and Securities; days since the beginning of the current policy year, or the effective date of the d. Outdoor Signs (whether attached or most recent policy change amending detached); and the Building limit, divided by 365. e. Forgery or Alteration. Example: This Deductible will not increase the Deductible If: shown in the Declarations. The Deductible will The applicable Building limit is be used to satisfy the requirements of the $100,000. The annual percentage Deductible shown in the Declarations. increase is 4%. The number of days 3. No deductible applies to the following since the beginning of the policy year coverages.- (or last policy change) is 146. a. Fire Department Service Charge; The amount of increase is b. Business Income; $100,000 x .04 x 146 _ 365 = $1,600 c. Extra Expense; 4. Business Personal Property Limit — d. Civil Authority; and Seasonal Increase e. Fire Extinguisher Systems Recharge a. Subject to Paragraph 3.b., the Limit of Expense. Insurance for Business Personal Property 6. Paragraph E.5. Loss Payment of the Property is automatically increased by: Loss Conditions in Section I — Property is deleted (1) The Business Personal Property — and replaced by the following: Seasonal Increase percentage shown in the Declarations; or In the event of loss or damage covered by this policy: (2) 25% if no Business Personal Property — Seasonal Increase percentage is a. At our option, we will either: shown in the Declarations; (1) Pay the value of lost or damaged property; to provide for seasonal variances. (2) Pay the cost of repairing or replacing the b. The increase described in Paragraph 3.a. lost or damaged property; will apply only if the Limit of Insurance (3) Take all or any part of the property at an shown for Business Personal Property in agreed or appraised value; or the Declarations is at least 100% of your (4) Repair, rebuild or replace the property with average monthly values during the lesser other property of like kind and quality, of subject to Paragraph d.(1)(e) below. (1) The 12 months immediately preceding b. We will give notice of our intentions within 30 the date the loss or damage occurs; or days after we receive the sworn proof of loss. (2) The period of time you have been in c. We will not pay you more than your financial business as of the date the loss or interest in the Covered Property. damage occurs. 5. Paragraph D. Deductibles in Section I — Property d. We will determine the value of Covered is deleted in its entirety and replaced by the Property as follows: following: (1) At replacement cost without deduction for I. We will not pay for loss or damage in any one depreciation, except as provided in (2) occurrence until the amount of loss or damage through (7)below. exceeds the Deductible shown in the (a) You may make a claim for loss or Declarations. We will then pay the amount of damage covered by this insurance on loss or damage per location in excess of the an actual cash value basis instead of Deductible up to the applicable Limit of on a replacement cost basis. In the Insurance of Section I— Property. event you elect to have loss or damage 2. Regardless of the amount of the Deductible settled on an actual cash value basis, shown in the Declarations, the most we will you may still make a claim on a deduct per location from any loss of or damage replacement cost basis if you notify us of your intent to do so within 180 days after the loss or damage. EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc.with its permission Page 17 of 20 (b) We will not pay on a replacement cost (4) Glass at the cost of replacement with safety basis for any loss or damage: glazing material if required by law. (i) Until the lost or damaged property (5) Tenants' Improvements and Betterments is actually repaired or replaced; at: and (a) Replacement cost if you make repairs (i i) Unless the repair or replacement promptly. are made as soon as reasonably (b) A proportion of your original cost if you possible after the loss or damage. do not make repairs promptly. We will (c) We will not pay more for loss or determine the proportionate value as damage on a replacement cost basis follows: than the least of: (i) Multiply the original cost by the (i) The amount it would cost to number of days from the loss or replace the damaged item at the damage to the expiration of the time of the loss with new property lease; and of similar kind and quality to be (i i) Divide the amount determined in (i) used for the same purpose on the above by the number of days from same site; or the installation of improvements to (i i) The amount you actually spend in the expiration of the lease. repairing the damage, or replacing If your lease contains a renewal option, the damaged property with new the expiration of the renewal option property of similar kind and quality. period will replace the expiration of the (d) The cost to repair, rebuild or replace lease in this procedure. does not include the increased cost (c) Nothing if others pay for repairs or attributable to enforcement of or replacement. compliance with any ordinance or law (6) Applicable only to the Money and regulating the construction, use or Securities and Employee Dishonesty repair of any property. Additional Coverages: (2) If the"Actual Cash Value- Buildings" option applies, as shown in the Declarations, (a) "Money" at its face value; and paragraph (1) above does not apply to (b) "Securities" at their value at the close Buildings. Instead, we will determine the of business on the day the loss is value of Buildings at actual cash value. discovered. (3) The following property at actual cash value: (7) Applicable only to Accounts Receivable: (a) Used or second-hand merchandise (a) If you cannot accurately establish the held in storage or for sale, amount of accounts receivable (b) Property of others. However, if an outstanding as of the time of loss or item(s) of personal property of others is damage: subject to a written contract which (i) We will determine the total of the governs your liability for loss or average monthly amounts of damage to that item(s), then valuation accounts receivable for the 12 of that item(s) will be based on the months immediately preceding the amount for which you are liable under month in which the loss or damage such contract, but not to exceed the Occurs; and lesser of the replacement cost of the (i i) We will adjust that total for any property or the applicable Limit of normal fluctuations in the amount Insurance; of accounts receivable for the (c) Household contents, except personal month in which the loss or damage property in apartments or rooms occurred or for any demonstrated furnished by you as landlord, variance from the average for that (d) Manuscripts; and month. (e) Works of art, antiques or rare articles, (b) The following will be deducted from the including etchings, pictures, statuary, total amount of accounts receivable, marbles, bronzes, porcelains and bric- however that amount is established: a-brac. (i) The amount of the accounts for which there is no loss or damage; EB 99 01 12 19 Includes copyrighted material of Insurance Services Office,Inc.with its permission Page 18 Of 20 (ii) The amount of the accounts that a. The amount that such other insurance paid for you are able to reestablish or the loss or damage; and collect; b. The amount of the deductible applicable to the (iii)An amount to allow for probable loss or damage under the other insurance. bad debts that you are normally However, we will not pay more than the applicable unable to collect; and Limit of Insurance. (iv)All unearned interest and service 9. The following is added to Paragraph H. Property charges. Definitions. e. Our payment for loss of or damage to personal "Fine Arts" means paintings, etchings, pictures, property of others will only be for the account of tapestries, rare or art glass, art glass windows, the owners of the property. We may adjust valuable rugs, statuary, sculptures, "antique" losses with the owners of lost or damaged furniture, "antique" jewelry, bric-a-brac, porcelains property if other than you. If we pay the owners, and similar property of rarity, historical value or such payments will satisfy your claims against artistic merit. "Antique" means an object having us for the owners' property. We will not pay the value because its craftsmanship is in the style or owners more than their financial interest in the fashion of former times and its age is 100 years or Covered Property. older. f. We may elect to defend you against suits 10. Additional Insured—Building Owner arising from claims of owners of property. We will do this at our expense. The following is added to Section I—Property. g. We will pay for covered loss or damage within If you are a building owner(s), you are an insured, 30 days after we receive the sworn proof of but only with respect to the coverage provided loss, provided you have complied with all of the under this Policy for direct physical loss or damage terms of this policy; and to the building(s) described in the Declarations and (1) We have reached agreement with you on owned by you. All other policy terms and conditions the amount of loss; or apply. (2) An appraisal award has been made. 11. Blanket Additional Insured h. A party wall is a wall that separates and is The following changes revise Section II—Liability. common to adjoining buildings that are owned Paragraph C. Who Is An Insured is amended to by different parties. In settling covered losses include the following: involving a party wall, we will pay a proportion of the loss to the party wall based on your 1. Blanket Additional Insured interest in the wall in proportion to the interest a. Any person or organization when you and of the owner of the adjoining building. However, such person or organization have agreed in if you elect to repair or replace your building writing in a contract or agreement, and the owner of the adjoining building elects executed prior to any "occurrence", that not to repair or replace that building, we will pay such person or organization be added as you the full value of the loss to the party wall, an additional insured on your policy. Such subject to all applicable policy provisions person or organization is an additional including Limits of Insurance and all other insured only with respect to liability for provisions of this Loss Payment Condition. Our "bodily injury", "property damage" or payment under the provisions of this paragraph "personal and advertising injury" caused, in does not alter any right of subrogation we may whole or in part, by: have against any entity, including the owner or (1) Your acts or omission; or insurer of the adjoining building, and does not alter the terms of the Transfer Of Rights Of (2) The acts or omissions of those acting Recovery Against Others To Us Condition in on your behalf; this policy. In the performance of your ongoing 7. Paragraph G. Optional Coverages in Section I — operations for the additional insured, or in Property is deleted in its entirety. connection with your premises owned by or B. OTHER INSURANCE UNDER THE SAME rented to you. POLICY A person's or organization's status as an If there is other insurance under this policy covering additional insured under this endorsement the same loss or damage, we will pay only for the ends when your contract or agreement with amount of covered loss or damage in excess of the such person or organization ends. sum of: EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc.with its permission Page 19 Of 20 (b) The Limits of Insurance applicable to the Additional insured are those specified in the written contract or agreement but not more than the Limits of Insurance specified in the Declarations of this policy. The Limits of Insurance applicable to the Additional Insured are inclusive of and not in addition to the Limits of Insurance shown in the declarations for the Named Insured. All other policy terms and conditions apply. The following changes revise Section III — Common Policy Conditions. Paragraph H. Other Insurance is amended to add the following subparagraph: 4. Other Insurance As Excess Insurance To the extent required by an "insured contract", this insurance is primary on behalf of the additional insured, and any other insurance maintained by the additional insured is excess and not contributory with this insurance. If the "insured contract" does not require this provision, then Paragraph 1. above will apply. EB 99 01 12 19 Includes copyrighted material of Insurance Services Office, Inc.with its permission Page 20 of 20