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CAG2021-431 - Original - CFC Construction, LLC - Neely Soames House Painting, Roof Washing, Carpentry Repair - 09/29/2021
9/23/21 OK to sign 9/23/2021, TW. CAG2021-431 9/29/21 PUBLIC WORKS AGREEMENT - 1 (Over $20K with Performance Bond) PUBLIC WORKS AGREEMENT between City of Kent and CFC Construction, LLC THIS AGREEMENT is made by and between the City of Kent, a Washington municipal corporation (hereinafter the "City"), and CFC Construction, LLC, organized under the laws of the State of Washington, located and doing business at 20233 SE 192nd St., Renton, WA, 98058, (425) 433-8547, Chris Cummings, (hereinafter the "Contractor"). AGREEMENT The parties agree as follows: I. DESCRIPTION OF WORK. Contractor shall perform the following services for the City in accordance with the following described plans and/or specifications: CFC Construction, LLC will provide all labor and materials needed to wash roof and siding, clean gutters and downspouts, provide carpentry repair as needed, spot prime, and paint exterior walls, ceilings, decks, handrails, windows at the Neely Soames House located at 5311 S. 237th Pl. Kent, WA. 98032, in accordance with the contracts proposal which is attached and incorporated as Exhibit A. The Contractor further represents that the services furnished under this Agreement will be performed in accordance with generally accepted professional practices within the Puget Sound region in effect at the time such services are performed. II. TIME OF COMPLETION. The parties agree that work will begin on the tasks described in Section I above within 5 calendar days after the City issues its Notice to Proceed. Upon the effective date of this Agreement, all physical work shall thereafter be completed within 90 working days. The term of this Agreement shall continue until all work has been completed, final acceptance has occurred, and all Contractor obligations have been fulfilled. III. COMPENSATION. The City shall pay the Contractor a total amount not to exceed $54,994.95, including any applicable Washington State Sales Tax, for the work and services contemplated in this Agreement. The Contractor shall invoice the City monthly. The City will pay for the portion of the work described in the invoice that has been completed by the Contractor and approved by the City. The City’s payment shall not constitute a waiver of the City’s right to final inspection and acceptance of the project. Card Payment Program. The Contractor may elect to participate in automated credit card payments provided for by the City and its financial institution. This Program is provided as an alternative to payment by check and is available for the convenience of the Contractor. If the Contractor voluntarily participates in this Program, the Contractor will be solely responsible for any fees imposed by financial institutions or credit card companies. The Contractor shall not charge those fees back to the City. PUBLIC WORKS AGREEMENT - 2 (Over $20K with Performance Bond) A. Payment and Performance Bond. Pursuant to Chapter 39.08 RCW, the Contractor, shall provide the City a payment and performance bond for the full contract amount. B. Retainage. The City shall hold back a retainage in the amount of five percent (5%) of any and all payments made to the Contractor for a period of sixty (60) days after the date of final acceptance, or until receipt of all necessary releases from the State Department of Revenue, the State Department of Labor & Industries, and the State Employment Security Department, and until settlement of any liens filed under Chapter 60.28 RCW, whichever is later. The amount retained shall be placed in a fund by the City pursuant to RCW 60.28.011(4)(a), unless otherwise instructed by the Contractor within fourteen (14) calendar days of the Contractor’s signature on the Agreement. C. Defective or Unauthorized Work. The City reserves its right to withhold payment from the Contractor for any defective or unauthorized work. Defective or unauthorized work includes, without limitation: work and materials that do not conform to the requirements of this Agreement; and extra work and materials furnished without the City’s written approval. If the Contractor is unable, for any reason, to satisfactorily complete any portion of the work, the City may complete the work by contract or otherwise, and the Contractor shall be liable to the City for any additional costs incurred by the City. “Additional costs” shall mean all reasonable costs, including legal costs and attorney fees, incurred by the City beyond the maximum Contract price specified above. The City further reserves its right to deduct the cost to complete the Contract work, including any Additional Costs, from any and all amounts due or to become due the Contractor. D. Final Payment: Waiver of Claims. THE CONTRACTOR’S ACCEPTANCE OF FINAL PAYMENT (EXCLUDING WITHHELD RETAINAGE) SHALL CONSTITUTE A WAIVER OF CONTRACTOR’S CLAIMS, EXCEPT THOSE PREVIOUSLY AND PROPERLY MADE AND IDENTIFIED BY CONTRACTOR AS UNSETTLED AT THE TIME FINAL PAYMENT IS MADE AND ACCEPTED. IV. INDEPENDENT CONTRACTOR. The parties intend that an Independent Contractor- Employer Relationship will be created by this Agreement. By their execution of this Agreement, and in accordance with Ch. 51.08 RCW, the parties make the following representations: A. The Contractor has the ability to control and direct the performance and details of its work, the City being interested only in the results obtained under this Agreement. B. The Contractor maintains and pays for its own place of business from which the 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 the Contractor’s services and is a service other than that furnished by the City, or the Contractor is engaged in an independently established trade, occupation, profession, or business of the same nature as that involved under this Agreement. D. The Contractor is responsible for filing as they become due all necessary tax documents with appropriate federal and state agencies, including the Internal Revenue Service and the state Department of Revenue. 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 the Contractor’s business, and has obtained a Unified Business Identifier (UBI) number from the State of Washington. PUBLIC WORKS AGREEMENT - 3 (Over $20K with Performance Bond) F. The Contractor has a valid contractor registration pursuant to Ch. 18.27 RCW or an electrical contractor license pursuant to Ch. 19.28 RCW. G. The Contractor maintains a set of books dedicated to the expenses and earnings of its business. V. TERMINATION. The City may terminate this Agreement for good cause. “Good cause” shall include, without limitation, any one or more of the following events: A. The Contractor’s refusal or failure to supply a sufficient number of properly skilled workers or proper materials for completion of the Contract work. B. The Contractor’s failure to complete the work within the time specified in this Agreement. C. The Contractor’s failure to make full and prompt payment to subcontractors or for material or labor. D. The Contractor’s persistent disregard of federal, state or local laws, rules or regulations. E. The Contractor’s filing for bankruptcy or becoming adjudged bankrupt. F. The Contractor’s breach of any portion of this Agreement. If the City terminates this Agreement for good cause, the Contractor shall not receive any further money due under this Agreement until the Contract work is completed. After termination, the City may take possession of all records and data within the Contractor’s possession pertaining to this project which may be used by the City without restriction. VI. PREVAILING WAGES. The Contractor shall file a “Statement of Intent to Pay Prevailing Wages,” with the State of Washington Department of Labor & Industries prior to commencing the Contract work. The Contractor shall pay prevailing wages in effect on the date the bid is accepted or executed by the Contractor, and comply with Chapter 39.12 of the Revised Code of Washington, as well as any other applicable prevailing wage rate provisions. The latest prevailing wage rate revision issued by the Department of Labor and Industries is attached. VII. CHANGES. The City may issue a written change order for any change in the Contract work during the performance of this Agreement. If the Contractor determines, for any reason, that a change order is necessary, the Contractor must submit a written change order request to the person listed in the notice provision section of this Agreement, Section XVI(D), within fourteen (14) calendar days of the date the Contractor knew or should have known of the facts and events giving rise to the requested change. If the City determines that the change increases or decreases the Contractor's costs or time for performance, the City will make an equitable adjustment. The City will attempt, in good faith, to reach agreement with the Contractor on all equitable adjustments. However, if the parties are unable to agree, the City will determine the equitable adjustment as it deems appropriate. The Contractor shall proceed with the change order work upon receiving either a written change order from the City or an oral order from the City before actually receiving the written change order. If the Contractor fails to require a change order within the time specified in this paragraph, the Contractor waives its right to make any claim or submit subsequent change order requests for that portion of the contract work. If the Contractor disagrees with the equitable adjustment, the Contractor must complete the change order work; however, the Contractor may elect to protest the adjustment as provided in subsections A through E of Section IX, Claims, below. The Contractor accepts all requirements of a change order by: (1) endorsing it, (2) writing a separate acceptance, or (3) not protesting in the way this section provides. A change order that is accepted by the Contractor as provided in this section shall constitute full payment and final settlement of all claims for contract time and for direct, indirect and consequential costs, including costs of delays related to any work, either covered or affected by the change. PUBLIC WORKS AGREEMENT - 4 (Over $20K with Performance Bond) VIII. FORCE MAJEURE. Neither party shall be liable to the other for breach due to delay or failure in performance resulting from acts of God, acts of war or of the public enemy, riots, pandemic, fire, flood, or other natural disaster or acts of government (“force majeure event”). Performance that is prevented or delayed due to a force majeure event shall not result in liability to the delayed party. Both parties represent to the other that at the time of signing this Agreement, they are able to perform as required and their performance will not be prevented, hindered, or delayed by the current COVID-19 pandemic, any existing state or national declarations of emergency, or any current social distancing restrictions or personal protective equipment requirements that may be required under federal, state, or local law in response to the current pandemic. If any future performance is prevented or delayed by a force majeure event, the party whose performance is prevented or delayed shall promptly notify the other party of the existence and nature of the force majeure event causing the prevention or delay in performance. Any excuse from liability shall be effective only to the extent and duration of the force majeure event causing the prevention or delay in performance and, provided, that the party prevented or delayed has not caused such event to occur and continues to use diligent, good faith efforts to avoid the effects of such event and to perform the obligation. Notwithstanding other provisions of this section, the Contractor shall not be entitled to, and the City shall not be liable for, the payment of any part of the contract price during a force majeure event, or any costs, losses, expenses, damages, or delay costs incurred by the Contractor due to a force majeure event. Performance that is more costly due to a force majeure event is not included within the scope of this Force Majeure provision. If a force majeure event occurs, the City may direct the Contractor to restart any work or performance that may have ceased, to change the work, or to take other action to secure the work or the project site during the force majeure event. The cost to restart, change, or secure the work or project site arising from a direction by the City under this clause will be dealt with as a change order, except to the extent that the loss or damage has been caused or exacerbated by the failure of the Contractor to fulfill its obligations under this Agreement. Except as expressly contemplated by this section, all other costs will be borne by the Contractor, IX. CLAIMS. If the Contractor disagrees with anything required by a change order, another written order, or an oral order from the City, including any direction, instruction, interpretation, or determination by the City, the Contractor may file a claim as provided in this section. The Contractor shall give written notice to the City of all claims within fourteen (14) calendar days of the occurrence of the events giving rise to the claims, or within fourteen (14) calendar days of the date the Contractor knew or should have known of the facts or events giving rise to the claim, whichever occurs first . Any claim for damages, additional payment for any reason, or extension of time, whether under this Agreement or otherwise, shall be conclusively deemed to have been waived by the Contractor unless a timely written claim is made in strict accordance with the applicable provisions of this Agreement. At a minimum, a Contractor's written claim shall include the information set forth in subsections A, items 1 through 5 below. FAILURE TO PROVIDE A COMPLETE, WRITTEN NOTIFICATION OF CLAIM WITHIN THE TIME ALLOWED SHALL BE AN ABSOLUTE WAIVER OF ANY CLAIMS ARISING IN ANY WAY FROM THE FACTS OR EVENTS SURROUNDING THAT CLAIM OR CAUSED BY THAT DELAY. A. Notice of Claim. Provide a signed written notice of claim that provides the following information: 1. The date of the Contractor's claim; 2. The nature and circumstances that caused the claim; 3. The provisions in this Agreement that support the claim; 4. The estimated dollar cost, if any, of the claimed work and how that estimate was determined; and PUBLIC WORKS AGREEMENT - 5 (Over $20K with Performance Bond) 5. An analysis of the progress schedule showing the schedule change or disruption if the Contractor is asserting a schedule change or disruption. B. Records. The Contractor shall keep complete records of extra costs and time incurred as a result of the asserted events giving rise to the claim. The City shall have access to any of the Contractor's records needed for evaluating the protest. The City will evaluate all claims, provided the procedures in this section are followed. If the City determines that a claim is valid, the City will adjust payment for work or time by an equitable adjustment. No adjustment will be made for an invalid protest. C. Contractor's Duty to Complete Protested Work. In spite of any claim, the Contractor shall proceed promptly to provide the goods, materials and services required by the City under this Agreement. D. Failure to Protest Constitutes Waiver. By not protesting as this section provides, the Contractor also waives any additional entitlement and accepts from the City any written or oral order (including directions, instructions, interpretations, and determination). E. Failure to Follow Procedures Constitutes Waiver. By failing to follow the procedures of this section, the Contractor completely waives any claims for protested work and accepts from the City any written or oral order (including directions, instructions, interpretations, and determination). X. LIMITATION OF ACTIONS. CONTRACTOR MUST, IN ANY EVENT, FILE ANY LAWSUIT ARISING FROM OR CONNECTED WITH THIS AGREEMENT WITHIN 120 CALENDAR DAYS FROM THE DATE THE CONTRACT WORK IS COMPLETE OR CONTRACTOR’S ABILITY TO FILE THAT CLAIM OR SUIT SHALL BE FOREVER BARRED. THIS SECTION FURTHER LIMITS ANY APPLICABLE STATUTORY LIMITATIONS PERIOD. XI. WARRANTY. The Contractor warrants that it will faithfully and satisfactorily perform all work provided under this Agreement in accordance with the provisions of this Agreement. The Contractor shall promptly correct all defects in workmanship and materials: (1) when the Contractor knows or should have known of the defect, or (2) upon the Contractor’s receipt of notification from the City of the existence or discovery of the defect. In the event any parts are repaired or replaced, only original replacement parts shall be used—rebuilt or used parts will not be acceptable. When defects are corrected, the warranty for that portion of the work shall extend for an additional year beyond the original warranty period applicable to the overall work. The Contractor shall begin to correct any defects within seven (7) calendar days of its receipt of notice from the City of the defect. If the Contractor does not accomplish the corrections within a reasonable time as determined by the City, the City may complete the corrections and the Contractor shall pay all costs incurred by the City in order to accomplish the correction. XII. DISCRIMINATION. In the hiring of employees for the performance of work under this Agreement or any sub-contract, the Contractor, its sub-contractors, or any person acting on behalf of the Contractor or sub-contractor shall not, by reason of race, religion, color, sex, age, sexual orientation, national origin, or the presence of any sensory, mental, or physical disability, discriminate against any person who is qualified and available to perform the work to which the employment relates. The 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. XIII. INDEMNIFICATION. The 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. PUBLIC WORKS AGREEMENT - 6 (Over $20K with Performance Bond) The City's inspection or acceptance of any of the Contractor's work when completed shall not be grounds to avoid any of these covenants of indemnification. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the City, its officers, officials, employees, agents and volunteers, the Contractor's duty to defend, indemnify, and hold the City harmless, and the Contractor’s liability accruing from that obligation shall be only to the extent of the Contractor's negligence. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE CONTRACTOR'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER. In the event the 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 the Contractor shall pay all the City’s costs for defense, including all reasonable expert witness fees and reasonable attorneys’ fees, plus the City’s legal costs and fees incurred because there was a wrongful refusal on the Contractor’s part. The provisions of this section shall survive the expiration or termination of this Agreement. XIV. INSURANCE. The Contractor shall procure and maintain for the duration of the Agreement, insurance of the types and in the amounts described in Exhibit attached and incorporated by this reference. XV. WORK PERFORMED AT CONTRACTOR'S RISK. The Contractor shall take all necessary precautions and shall be responsible for the safety of its employees, agents, and subcontractors in the performance of the contract work and shall utilize all protection necessary for that purpose. All work shall be done at the Contractor's own risk, and the 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. XVI. MISCELLANEOUS PROVISIONS. A. Recyclable Materials. Pursuant to Chapter 3.80 of the Kent City Code, the City requires its contractors and consultants to use recycled and recyclable products whenever practicable. A price preference may be available for any designated recycled product. B. Non-Waiver of Breach. The failure of the City to insist upon strict performance of any of the covenants and agreements contained in this Agreement, or to exercise any option conferred by this Agreement in one or more instances shall not be construed to be a waiver or relinquishment of those covenants, agreements or options, and the same shall be and remain in full force and effect. C. Resolution of Disputes and Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. If the parties are unable to settle any dispute, difference or claim arising from the parties’ performance of this Agreement, the exclusive means of resolving that dispute, difference or claim, shall only be by 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 XIII 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 PUBLIC WORKS AGREEMENT - 7 (Over $20K with Performance Bond) notice hereunder shall become effective three (3) business days after the date of mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement or such other address as may be hereafter specified in writing. E. Assignment. Any assignment of this Agreement by either party without the written consent of the non-assigning party shall be void. If the non-assigning party gives its consent to any assignment, the terms of this Agreement shall continue in full force and effect and no further assignment shall be made without additional written consent. F. Modification. No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of the City and the Contractor. G. Entire Agreement. The written provisions and terms of this Agreement, together with any Exhibits attached hereto, shall supersede all prior verbal statements of any officer or other representative of the City, and such statements shall not be effective or be construed as entering into or forming a part of or altering in any manner this Agreement. All of the above documents are hereby made a part of this Agreement. However, should any language in any of the Exhibits to this Agreement conflict with any language contained in this Agreement, the terms of this Agreement shall prevail. H. Compliance with Laws. The Contractor agrees to comply with all federal, state, and municipal laws, rules, and regulations that are now effective or in the future become applicable to the Contractor's business, equipment, and personnel engaged in operations covered by this Agreement or accruing out of the performance of those operations. I. 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. J. City Business License Required. Prior to commencing the tasks described in Section I, the Contractor agrees to provide proof of a current city of Kent business license pursuant to Chapter 5.01 of the Kent City Code. K. 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 PUBLIC WORKS AGREEMENT - 8 (Over $20K with Performance Bond) its effective date are ratified and affirmed, and the terms of the Agreement shall be deemed to have applied. CONTRACTOR: By: _______________________________ Print Name: _________________________ Its: _______________________________ DATE: _____________________________ CITY OF KENT: By: _______________________________ Print Name: Dana Ralph______________ Its:Mayor __________________ DATE: _____________________________ NOTICES TO BE SENT TO: CONTRACTOR: Chris Cummings CFC Construction, LLC 20233 SE 192nd St. Renton, WA 98058 (425) 433-8547 (telephone) (425) 433-8150 (facsimile) NOTICES TO BE SENT TO: CITY OF KENT: Diana Lazouski City of Kent 220 Fourth Avenue South Kent, WA 98032 (253) 856-5083 (telephone) (253) 856-6080 (facsimile) APPROVED AS TO FORM: _________________________________________ Kent Law Department ATTEST: _________________________________________ Kent City Clerk [In this field, you may enter the electronic filepath where the contract has been saved] 09/29/2021 EEO COMPLIANCE DOCUMENTS - 1 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. By: __________________________________________ For: _________________________________________ Title: ________________________________________ Date: ________________________________________ EEO COMPLIANCE DOCUMENTS - 2 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 - 3 CITY OF KENT EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE STATEMENT This form shall be filled out AFTER COMPLETION of this project by the Contractor awarded the Agreement. I, the undersigned, a duly represented agent of Company, hereby acknowledge and declare that the before-mentioned company was the prime contractor for the Agreement known as that was entered into on the (date), between the firm I represent and the City of Kent. I declare that I complied fully with all of the requirements and obligations as outlined in the City of Kent Administrative Policy 1.2 and the Declaration City of Kent Equal Employment Opportunity Policy that was part of the before-mentioned Agreement. By: __________________________________________ For: _________________________________________ Title: ________________________________________ Date: ________________________________________ BIDDER RESPONSIBILITY CRITERIA - 1 BIDDER RESPONSIBILITY CRITERIA Certification of Compliance with Wage Payment Statutes This certification is required by state law (RCW 39.04.350(2)) to be submitted to the City before the contract can be awarded. The bidder hereby certifies that, within the three-year period immediately preceding the bid solicitation date (Insert Date), the bidder is not a “willful” violator, as defined in RCW 49.48.082, of any provision of chapters 49.46, 49.48, or 49.52 RCW, as determined by a final and binding citation and notice of assessment issued by the Department of Labor and Industries or through a civil judgment entered by a court of limited or general jurisdiction. I certify under penalty of perjury under the laws of the State of Washington that the foregoing is true and correct. Insert Bidder's Business Name By: __________________________________________ Signature of Authorized Official* Printed Name: _________________________________ Title: ________________________________________ Date: ________________________________________ City and State: _________________________________ *If a corporation, proposal must be executed in the corporate name by the president or vice- president (or any other corporate officer accompanied by evidence of authority to sign). If a co- partnership, proposal must be executed by a partner. EXHIBIT A CFC Construction LLC G e n e r a I Contractor September 13, 2021 City of Kent Neely Soames House Painting, Roof Washing, Carpentry Repair Project (FAC21-02) Bid City of Kent 220 Fourth Avenue South Kent, WA 98032 Attn: Nathan Harper, FMP Facilities Capital Projects Manager (253) 856-5082 nharpera,KentWA.gov CFC Construction LLC (CFC) is pleased to provide a bid for the City of Kent Neely Soames House Painting, Roof Washing, Carpentry Repair Project (FAC21-02). Our bid pricing is based on the Invitation To Bid, CFC site visit on August 9, 2021 and the Complete Scope indicated on the Invitation To Bid. PRICING 1) Pressure wash roof, all exterior surfaces and gutters $5,950.00 2) Miscellaneous carpentry repairs $15,000.00 3) Caulk, wood filler, primer and paint $23,000.00 4) General Conditions, Overhead, Profit and Insurance $6,000.00 Total amount (WSST not included) $49,950.00 CFC would require water to be provided by the owner. Submitted for CFC Construction LLC by: r Darren Hamlin, Proiect Manager darrenhamlin.cfc@gmail.com CFC Construction LLC 20233 SE 192nd St Renton, WA 98058 (425) 433-8547 Date: September 13, 2021 20233 SE 192ni Street, Renton, WA 98058 425-433-8547 'CFCCOCL888JO EXHIBIT BINSURANCE REQUIREMENTS FOR SERVICE CONTRACTS Insurance The Contractor shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees or subcontractors. A. Minimum Scope of Insurance Contractor shall obtain insurance of the types described below: 1. Commercial General Liability insurance shall be written on 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 Contractor’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. 2. 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. 3. Workers’ Compensation coverage as required by the Industrial Insurance laws of the State of Washington. B. Minimum Amounts of Insurance Contractor shall maintain the following insurance limits: 1.Commercial General Liability insurance shall be written with limits no less than $2,000,000 each occurrence, $2,000,000 general aggregate and a $2,000,000 products-completed operations aggregate limit. 2. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. EXHIBIT B (Continued) 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 Contractor’s insurance coverage shall be primary insurance as respect the City. Any Insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Contractor’s insurance and shall not contribute with it. 2. The Contractor’s insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. 3. The City of Kent shall be named as an additional insured on all policies (except Professional Liability) as respects work performed by or on behalf of the contractor and a copy of the endorsement naming the City as additional insured shall be attached to the Certificate of Insurance. The City reserves the right to receive a certified copy of all required insurance policies. The Contractor’s Commercial General Liability insurance shall also contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer’s liability. D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Verification of Coverage Contractor shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. F. Subcontractors Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the same insurance requirements as stated herein for the Contractor. Liberty Mutual INSURANCE Policyholder Information Named Insured & Mailing Address Agent Mailing Address & Phone No. CFC CONSTRUCTION LLC 20233 SE 192nd St Renton, WA 98058-027 Dear Policyholder: (360) 692-6131 KURESMAN INSURANCE LLC 9321 BAYSHORE DR NW STE 111 SILVERDALE, WA 98383-8350 We know you work hard to build your business. We work together with your agent, KURESMAN INSURANCE LLC (360) 692-6131 to help protect the things you care about. Thank you for selecting us. Enclosed are your insurance documents consisting of • Commercial Umbrella To find your limits of insurance and premium please refer to your Declarations page(s). Please refer to your policy for specific coverages. If you have any questions or changes that may affect your insurance needs, please contact your Agent at (360) 692-6131 Verify that all information is correct If you have any changes, please contact your Agent at (360) 692-6131 Reminders In case of a claim, call your Agent or 1-844-325-2467 You Need To Know . CONTINUED ON NEXT PAGE To report a claim, call your Agent or 1-844-325-2467 DS 70 20 01 08 06/05/2021 CFC CONSTRUCTION LLC USO (22) 61 78 39 15 From 07/28/2021 To 07/28/2022 20233 SE 192nd St Renton, WA 98058-027 (360) 692-6131 KURESMAN INSURANCE LLC 9321 BAYSHORE DR NW STE 111 SILVERDALE, WA 98383-8350 TERRORISM INSURANCE PREMIUM DISCLOSURE AND OPPORTUNITY TO REJECT This notice contains important information about the Terrorism Risk Insurance Act and its effect on your policy. Please read it carefully. THE TERRORISM RISK INSURANCE ACT The Terrorism Risk Insurance Act, including all amendments ("TRIA" or the "Act"), establishes a program to spread the risk of catastrophic losses from certain acts of terrorism between insurers and the federal government. If an individual insurer's losses from "certified acts of terrorism" exceed a specified deductible amount, the government will generally reimburse the insurer for a percentage of losses (the "Federal Share") paid in excess of the deductible, but only if aggregate industry losses from such acts exceed the "Program Trigger". An insurer that has met its insurer deductible is not liable for any portion of losses in excess of $100 billion per year. Similarly, the federal government is not liable for any losses covered by the Act that exceed this amount. If aggregate insured losses exceed $100 billion, losses up to that amount may be pro -rated, as determined by the Secretary of the Treasury. Beginning in calendar year 2020, the Federal Share is 80% and the Program Trigger is $200,000,000. MANDATORY OFFER OF COVERAGE FOR "CERTIFIED ACTS OF TERRORISM" AND DISCLOSURE OF PRE- MIUM TRIA requires insurers to make coverage available for any loss that occurs within the United States (or outside of the U.S. in the case of U.S. missions and certain air carriers and vessels), results from a "certified act of terrorism" AND that is otherwise covered under your policy. A "certified act of terrorism" means: [A]ny act that is certified by the Secretary [of the Treasury ], in consultation with the Secretary of Homeland Security, and the Attorney General of the United States (i) to be an act of terrorism; (ii) to be a violent act or an act that is dangerous to (1) human life; (11) property; or (III) infrastructure; (iii) to have resulted in damage within the United States, or outside of the United States in the case of (1) an air carrier (as defined in section 40102 of title 49, United States Code) or United States flag vessel (or a vessel based principally in the United States, on which United States income tax is paid and whose insurance coverage is subject to regulation in the United States); or (11) the premises of a United States mission; and NP 73 12 02 20 © 2020 Liberty Mutual Insurance Page 1 of 2 (iv) to have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. REJECTING TERRORISM INSURANCE COVERAGE -WHAT YOU MUST DO We have included in your policy coverage for losses resulting from "certified acts of terrorism" as defined above. THE PREMIUM CHARGE FOR THIS COVERAGE APPEARS ON THE DECLARATIONS PAGE OF THE POLICY AND DOES NOT INCLUDE ANY CHARGES FOR THE PORTION OF LOSS COVERED BY THE FEDERAL GOV- ERNMENT UNDER THE ACT. If we are providing you with a quote, the premium charge will also appear on your quote as a separate line item charge. IF YOU CHOOSE TO REJECT THIS COVERAGE, PLEASE CHECK THE BOX BELOW, SIGN THE ACKNOWL- EDGMENT, AND RETURN THIS FORM TO YOUR AGENT: Please ensure any resection is received within thirty (30) days of the effective date of your policy. Before making a decision to reject terrorism insurance, refer to the Underlying Coverage Requirement located at the end of this Notice. ❑ I hereby reject this offer of coverage. I understand that by rejecting this offer, I will have no coverage for losses arising from "certified acts of terrorism" and my policy will be endorsed accordingly. Policyholder/Applicant's Signature Named Insured CFC CONSTRUCTION LLC Policy Effective/Expiration Date From 07/28/2021 To 07/28/2022 UNDERLYING COVERAGE REQUIREMENT Print Name Policy Number USO (22) 61 78 39 15 Date Signed This policy will apply to Terrorism Coverage only in excess of the total amounts stated as the applicable limits of the underlying policies listed in the Schedule of Underlying Insurance and the applicable limits of any other insurance providing coverage to you during the Policy Period. If you fail to comply with this Underlying Coverage Requirement and you do not maintain your underlying limits as scheduled, we will only be liable to the same extent that we would have been had you fully complied with this requirement. IF YOU REJECTED THIS COVERAGE, PLEASE RETURN THIS FORM TO YOUR AGENT. The summary of the Act and the coverage under your policy contained in this notice is necessarily general in nature. Your policy contains specific terms, definitions, exclusions and conditions. In case of any conflict, your policy language will control the resolution of all coverage questions. Please read your policy carefully. If you have any questions regarding this notice, please contact your agent. NP 73 12 02 20 © 2020 Liberty Mutual Insurance Page 2 of 2 Coverage Is Provided In: Policy Number: Liberty The Ohio Casualty Insurance Company USO (22) 6178 3915 Mutual INSURANCE Commercial Umbrella Policy Declarations Basis: Occurrence (ITEM 1) NAMED INSURED & MAILING ADDRESS AGENT MAILING ADDRESS & PHONE NO. CFC CONSTRUCTION LLC (360) 692-6131 20233 SE 192nd St KURESMAN INSURANCE LLC Renton, WA 98058-027 9321 BAYSHORE DR NW STE I I I SILVERDALE, WA 98383-8350 Named Insured Is: LIMITED LIABILITY COMPANY Named Insured Business Is: CARPENTRY - INTERIOR (ITEM 2) POLICY PERIOD From 07/28/2021 TO 07/28/2022 12:01 AM Standard Time at Insured Mailing Location (ITEM 3) PREMIUM CHARGES Explanation of DESCRIPTION PREMIUM Charges Commercial iTmhrella $'I _ 465 _ nn Certifier) Actc of Terrorism Coverage S95-on (TncluAPd) Total Advance Charges $1,465.00 Note: This is not a bill BASIS OF PREMIUM: NON-AUDITABLE( X) AUDITABLE( ) IN THE EVENT OF CANCELLATION BY THE NAMED INSURED, THE COMPANY WILL RECEIVE AND RETAIN NO LESS THAN (0% ) OF THE POLICY PREMIUM AS THE MINIMUM RETAINED PREMIUM ° PLUS CERTIFIED ACTS OF TERRORISM COVERAGE AND ANY APPLICABLE TAXES AND SURCHARGES. (ITEM 4) LIMITS OF INSURANCE DESCRIPTION LIMIT EACH OCCURRENCE $2, 000, 000 AGGREGATE (WHERE APPLICABLE) $ 2, 0 0 0, 0 0 0 PRODUCTS -COMPLETED OPERATIONS AGGREGATE $ 2, 0 0 0, 0 0 0 SELF -INSURED RETENTION $10 , 0 0 0 Issue Date 06/06/21 To report a claim, call your Agent or 1-844-325-2467 Authorized Representative DS 70 22 01 08 06/06/21 61783915 POLSVCS 235 NCXFPPNO INSURED COPY 001413 PAGE 15 OF 72 Liberty Mutual INSURANCE Coverage Is Provided In: The Ohio Casualtv Insurance Corn (ITEM 5) SCHEDULE OF UNDERLYING INSURANCE: CARRIER, POLICY Policy Number: USO (22) 6178 3915 NUMBER AND PERIOD TYPE OF COVERAGE LIMITS OF INSURANCE OHIO SECURITY INSURANCE GENERAL $1,000,000 EACH OCCURRENCE COMPANY LIABILITY LIMIT 51,000,000 PERSONAL AND ADVERTISING INJURY LIMIT $2,000,000 GENERAL AGGREGATE LIMIT $2,000,000 PRODUCTS - COMPLETED OPERATIONS AGGREGATE LIMIT Includes Non -Owned and/or Hired Auto Liability BKS(22)61783915 07/28/2021 - 07/28/2022 OHIO SECURITY INSURANCE STOP GAP $1,000,000 BODILY INJURY EACH COMPANY LIABILITY ACCIDENT LIMIT SI,000,000 BODILY INJURY BY BKS(21)61783915 DISEASE AGGREGATE 07/28/2021 - 07/28/2022 LIMIT SI,000,000 BODILY INJURY BY DISEASE EACH EMPLOYEE LIMIT To report a claim, call your Agent or 1-844-325-2467 DS 70 23 01 08 06/06/21 61783915 POLSVCS 235 NCXFPPNO INSURED COPY 001413 PAGE 16 0F 72 Liberty Mutual INSURANCE Coverage Is Provided In: The Ohio Casualtv Insurance Corn POLICY FORMS AND ENDORSEMENTS Policy Number: USO (22) 6178 3915 This section lists all the Forms and Endorsements for your policy. Refer to these documents as needed for detailed information concerning your coverage. FORM NUMBER TITLE CNI90 11 07 18 Reporting A Commercial Claim 24 Hours A Day CU 60 02 06 97 Commercial Umbrella Coverage Form CU 60 39 01 15 Cap On Losses From Certified Acts Of Terrorism CU 604001 15 Underlying Coverage Requirement For Certified Acts Of Terrorism CU 61 06 01 13 Auto Liability - Following Form CU 61 50 10 18 Contractors Limitation Endorsement CU 61 90 08 10 Washington Changes - Cancellation and Nonrenewal CU 63 44 06 97 Foreign Liability - Following Form CU 6400 1204 Exterior Insulation and Finish System - Exclusion CU 64 30 12 04 Washington - Fungi or Bacteria Exclusion CU 64 32 03 99 Washington Asbestos Exclusion CU 64 79 05 09 Exclusion - Recording and Distribution of Material or Information in Violation of the Law CU 64 82 10 17 Amendment - Electronic Data CU 64 87 10 05 Economic or Trade Sanctions Condition Endorsement CU 64 92 01 13 Mobile Equipment - Following Form In witness whereof, we have caused this policy to be signed by our authorized officers. �V Mark Touhey David Long Secretary President To report a claim, call your Agent or 1-844-325-2467 DS 70 23 01 08 06/06/21 61783915 POLSVCS 235 NCXFPPNO INSURED COPY 001413 PAGE 17 OF 72 Liberty Mutual INSURANCE Coverage Is Provided In: The Ohio Casualtv Insurance Corn POLICY FORMS AND ENDORSEMENTS - continued Policy Number: USO (22) 6178 3915 This section lists all the Forms and Endorsements for your policy. Refer to these documents as needed for detailed information concerning your coverage. FORM NUMBER TITLE CU 64 95 1207 Waiver Transfer Rights of Recovery Against Others CU 65 08 01 15 Exclusion Of Punitive Damages Related To A Certified Act Of Terrorism CU 88 01 12 02 War Liability Exclusion CU 88 02 05 09 Non -Cumulation of Liability (Same Occurrence) CU 88 27 12 07 Washington Employment Related Practices Exclusion CU 88 31 05 09 Personal and Advertising Injury - Following Form CU 88 39 07 14 Amendment of Definition of Insured CU 88 41 02 10 Amendment of Pollution Exclusion CU 89 19 01 13 Amendment of Watercraft Exclusion CU 89 21 07 15 Amendment of Aircraft Exclusion CU 89 31 01 07 Washington Conditional Exclusion Of Terrorism Involving Nuclear, Biological Or Chemical Terrorism (Relating To Disposition Of Federal Terrorism Risk Insurance Act) CU 89 40 05 16 Crisis Management Coverage CU 89 44 08 17 Contractors Errors And Omissions Exclusion CU 89 45 10 14 Access or Disclosure Of Confidential Or Personal Information And Data -Related - Liability with Limited Bodily Injury Exception Exclusion CU 90 52 10 17 Damage To Property Amendment To report a claim, call your Agent or 1-844-325-2467 DS 70 23 01 08 06/06/21 61783915 POLSVCS 235 NCXFPPNO INSURED COPY 001413 PAGE 18 OF 72 CU 60 02 06 97 COMMERCIAL UMBRELLA COVERAGE FORM There are provisions in this policy that restrict Insuring Agreement, V. DEFINITIONS. Words and coverage. Read the entire policy carefully to deter- phrases that appear in quotation marks have spe- mine rights, duties and what is and is not cov- cial meaning and can be found in the DEFINITION ered. Section or the specific policy provision where they appear. Throughout this policy, the words "you" and "your" refer to the Named Insured as defined in Insuring Agreement, V. DEFINITIONS. The words In consideration of the payment of the premium "we," "us" and 'bur" refer to the Company pro- and in reliance upon the statements in the Dec- viding this insurance. The word "Insured" means larations we agree with you to provide coverage any person or organization qualifying as such in as follows: INSURING AGREEMENTS I. COVERAGE We will pay on behalf of the "Insured" those sums in excess of the "Retained Limit" that the "Insured" becomes legally obligated to pay by reason of liability imposed by law or assumed by the "Insured" under an "insured contract" because of "bodily injury," "property damage," "personal injury," or "advertising injury" that takes place during the Policy Pe- riod and is caused by an 'occurrence" hap- pening anywhere. The amount we will pay for damages is limited as described below in the Insuring Agreement Section II. LIMITS OF IN- SURANCE. II. LIMITS OF INSURANCE A. The Limits of Insurance shown in Item 4. of the Declarations and the rules below state the most we will pay regardless of the number of: 1. "Insureds"; 2. "claims" made or "suits" brought; or 3. persons or organizations "claims" or bringing "suits." making B. The General Aggregate Limit is the most we will pay for all damages covered under the Insuring Agreement in Section I., ex- cept: 1. damages included in the "products - completed operations hazard"; and 2. coverages included in the policies list- ed in the Schedule of Underlying Insur- ance to which no underlying aggregate limit applies. The amount stated on the Declarations as the General Aggregate Limit is the most we will pay for all damages arising out of any "bodily injury," "property damage," "personal injury," or "advertising injury" subject to an aggregate limit in the "un- derlying insurance." The General Aggre- gate Limit applies separately and in the same manner as the aggregate limits in the "underlying insurance." C. The Products -Completed Operations Ag- gregate Limit is the most we will pay for all damages included in the "products - completed operations hazard." D. Subject to B. or C. in Section II. LIMITS OF INSURANCE, whichever applies, the Each Occurrence Limit is the most we will pay for "bodily injury," "property damage," CU 60 02 06 97 (Page 1 of 15) "personal injury," or "advertising injury" Schedule of Underlying Insurance nor covered under the Insuring Agreement in by any other insurance providing cov- Section I. because of all "bodily injury," erage to the "Insured" during the Poli- "property damage," "personal injury," or cy Period; "advertising injury" arising out of any one "occurrence." and then up to an amount not exceeding the Each Occurrence Limit as stated in the E. If the applicable Limits of Insurance of the Declarations. policies listed in the Schedule of Under- lying Insurance or of other insurance pro- Once the Self -Insured Retention has been viding coverage to the "Insured" are re- exhausted by actual payment of "claims" duced or exhausted by actual payment of in full by the "Insured," the Self -Insured one or more "claims," subject to the terms Retention will not be reapplied or again and conditions of this policy, we will: payable by the "Insured" for said Policy Period. 1. in the event of reduction, pay in excess of the reduced underlying Limits of In- III. DEFENSE surance, or; A. We will have the right and duty to investi- 2. in the event of exhaustion, continue in gate any "claim" and defend any "suit" force as "underlying insurance," but seeking damages covered by the terms for no broader coverage than is avail- and conditions of this policy when: able under this policy. 1. the applicable Limits of Insurance of F. The Limits of Insurance of this policy ap- the underlying policies listed in the ply separately to each consecutive annual Schedule of Underlying Insurance and period and to any remaining period of less the Limits of Insurance of any other than 12 months, starting with the begin- insurance providing coverage to the ning of the policy period shown in the "Insured" have been exhausted by ac- Declarations, unless the policy period is tual payment of "claims" for any "oc- extended after issuance for an additional currence" to which this policy applies; period of less than 12 months. In that or case, the additional period will be deemed part of the last preceding period for pur- 2. damages are sought for any "occur - poses of determining the Limits of Insur- rence" which is covered by this policy ance. but not covered by any underlying policies listed in the Schedule of Un- G. Retained Limit derlying Insurance or any other insur- ance providing coverage to the "In - We will be liable only for that portion of sured." damages, subject to the Each Occurrence Limit stated in the Declarations, in excess B. When we assume the defense of any of the 'retained limit," which is the great- "claim" or "suit": er of: the total amounts stated as the ap- plicable limits of the underlying poli- cies listed in the Schedule of Under- lying Insurance and the applicable lim- its of any other insurance providing coverage to the "Insured" during the Policy Period; or 2. the amount stated in the Declarations as Self -Insured Retention as a result of any one 'occurrence" not covered by the underlying policies listed in the We will investigate any "claim" and defend any "suit" against the "In- sured" seeking damages on account of any 'occurrence" covered by this poli- cy. We have the right to investigate, defend and settle the "claim" or "suit" as we deem expedient. 2. All expenses we incur in the investiga- tion of any "claim" or defense of any "suit" are in addition to our Limits of Insurance. CU 60 02 06 97 (Page 2 of 15) 3. We will pay the following as expenses, to the extent that they are not included in the coverage in the underlying poli- cies listed in the Schedule of Under- lying Insurance or in any other insur- ance providing coverage to the "In- sured": a. premiums on bonds to release at- tachments, which bond amounts will not exceed our Limits of In- surance, but we are not obligated to apply for or furnish any such bond; b. premiums on appeal bonds, which bond amounts will not ex- ceed our policy limits, required by law to appeal any "claim" or "suit" we defend, but we are not obligated to apply for or furnish any such bond; c. all costs taxed against the "In- sured" in any "claim" or "suit" we defend; d. pre -judgment interest awarded against the "Insured" on that part of the judgment we pay that is within our applicable Limits of In- surance. If we make an offer to pay the applicable Limits of Insur- ance, we will not pay any pre- judgment interest based on the period of time after the offer; e. all interest that accrues after entry of judgment and before we have paid, offered to pay or deposited in court the part of the judgment that is within our applicable Limit of Insurance; f. the "Insured's" actual and reason- able expenses incurred at our re- quest. C. We will not investigate any "claim" or de- fend any "suit" after our applicable Limits of Insurance have been exhausted by pay- ment of judgments or settlements. D. In all other instances except Subsection A. in Section III. DEFENSE, we will not be obligated to assume charge of the inves- tigation, settlement or defense of any "claim" or "suit" against the "Insured." We will, however, have the right and will be given the opportunity to participate in the settlement, defense and trial of any "claim" or "suit" relative to any "occur- rence" which, in our opinion, may create liability on our part under the terms of this policy. If we exercise such right, we will do so at our own expense. IV. EXCLUSIONS This insurance does not apply to: A. "Bodily injury" or "property damage" ex- pected or intended from the standpoint of the "Insured." This exclusion does not ap- ply to "bodily injury" resulting from the use of reasonable force to protect persons or property. B. Any obligation of the "Insured" under a Workers Compensation, Unemployment Compensation or Disability Benefits Law, or under any similar law, regulation or ordinance. C. Any obligation of the "Insured" under the Employee Retirement Income Security Act of 1974 or any amendments to that act, or under any similar law, regulation or ordi- nance. D. Any obligation of the "Insured" under a No Fault, Uninsured Motorist or Underin- sured Motorist law, or under any similar law, regulation or ordinance. E. "Property damage" to "impaired property" or property that has not been physically injured, arising out of: 1. a defect, deficiency, inadequacy or dangerous condition in "your product" or "your work"; or 2. a delay or failure by you or anyone acting on your behalf to perform a con- tract or agreement in accordance with its terms. This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to "your product" or "your work" after it has been put to its intended use. CU 60 02 06 97 (Page 3 of 15) F. "Property damage" to "your product" aris- ing out of it or any part of it. G. "Property damage" to "your work" arising out of it or any part of it and included in the "products -completed operations haz- ard." This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor. H. Damages claimed for any loss, cost or ex- pense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of: 1. "your product"; 2. "your work'; or 3. "impaired property" if such product, work or property is with- drawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it. I. "Property damage" to property owned by the "Insured." J. "Personal injury" or "advertising injury": 1. arising out of oral, written, televised, videotaped, or electronic publication of material, if done by or at the direction of the "Insured" with knowledge of its falsity; 2. arising out of oral, written, televised, videotaped, or electronic publication of material whose first publication took place before the beginning of the poli- cy period; 3. arising out of the willful violation of a penal statute or ordinance committed by or with consent of the "Insured"; or 4. for which the "Insured" has assumed liability in a contract or agreement. This exclusion does not apply to liabil- ity for damages that the "Insured" would have in the absence of the contract or agreement. K. "Advertising injury" arising out of: 1. breach of contract, other than misap- propriation of advertising ideas under an implied contract; 2. the failure of goods, products or ser- vices to conform with advertised qual- ity or performance; 3. the wrong description of the price of goods, products or services; or 4. an offense committed by an "Insured" whose business is advertising, broad- casting, publishing or telecasting. L. Any liability, including but not limited to settlements, judgments, costs, charges, ex- penses, costs of investigations, or the fees of attorneys, experts, or consultants, aris- ing out of or in any way related to: 1. The actual, alleged or threatened pres- ence, discharge, dispersal, seepage, migration, release, or escape of "pollu- tants," however caused. 2. Any request, demand or order that any "Insured" or others test for, monitor, clean-up, remove, contain, treat, de- toxify, neutralize or in any way re- spond to or assess the effects of "pol- lutants." This includes demands, direc- tives, complaints, "suits," orders or re- quests brought by any governmental entity or by any person or group of persons. 3. Steps taken or amounts incurred by a governmental unit or any other person or organization to test for, monitor, clean-up, remove, contain, treat, de- toxify or neutralize or assess the ef- fects of "pollutants." This exclusion will apply to any liability, costs, charges, or expenses, or any judg- ments or settlements, arising directly or indirectly out of pollution whether or not the pollution was sudden, accidental, grad- ual, intended, expected, unexpected, pre- ventable or not preventable. CU 60 02 06 97 (Page 4 of 15) As used in this exclusion "pollutants" means any solid, liquid, gaseous, or ther- mal irritant or contaminant, including, but not limited to smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste ma- terial. Waste material includes materials which are intended to be or have been recycled, reconditioned or reclaimed. M. "Bodily injury" or "property damage" due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolu- tion. This exclusion applies only to liability assumed under a contract or agreement. N. Any liability, including, but not limited to settlements, judgments, costs, charges, ex- penses, costs of investigations, or the fees of attorneys, experts, or consultants aris- ing out of or related in any way, either directly or indirectly, to: 1. asbestos, asbestos products, asbestos - containing materials or products, as- bestos fibers or asbestos dust, includ- ing, but not limited to, manufacture, mining, use, sale, installation, removal, or distribution activities; 2. exposure to testing for, monitoring of, cleaning up, removing, containing or treating of asbestos, asbestos pro- ducts, asbestos -containing materials or products, asbestos fibers or asbestos dust; or 3. any obligation to investigate, settle or defend, or indemnify any person against any "claim" or "suit' arising out of, or related in any way, either directly or indirectly, to asbestos, as- bestos products, asbestos -containing materials or products, asbestos fibers or asbestos dust. 0. "Bodily injury," "property damage," "per- sonal injury" or "advertising injury" aris- ing out of any: 1. refusal to employ or promote; 2. termination of employment; 3. coercion, demotion, evaluation, reas- signment, discipline, defamation, ha- rassment, molestation, humiliation, discrimination or other employment re- lated practices, policies, acts or omis- sions; or 4. consequential "bodily injury," "proper- ty damage," "personal injury" or "ad- vertising injury" as a result of 0.1. through 0.3. This exclusion applies whether the "In- sured" may be held liable as an employer or in any other capacity and to any obliga- tion to share damages with or to repay someone else who must pay damages be- cause of "bodily injury," "property dam- age," "personal injury" or "advertising in- jury." P. "Bodily injury," "property damage," "per- sonal injury" or "advertising injury" ex- cluded by the Nuclear Energy Liability Ex- clusion attached to this Policy. Q. The following Items 1. through 4., except to the extent that such insurance is pro- vided by a policy listed in the Schedule of Underlying Insurance, and for no broader coverage than is provided by such policy: Liability of any employee with respect to "bodily injury," "property damage," "personal injury" or "advertising in- jury" to you or to another employee of the same employer injured in the course of such employment. 2. "Bodily injury" or "property damage" arising out of the ownership, mainten- ance, operation, use, 'loading" or "un- loading" of any watercraft, if such watercraft is owned, or chartered with- out crew, by or on behalf of any "In- sured." This exclusion will not apply to watercraft while ashore on any prem- ises owned by, rented to, or controlled by you. 3. "Bodily injury" or "property damage" arising out of the ownership, mainten- ance, operation, use, 'loading" or "un- loading" of any aircraft, if such aircraft is owned, or hired without pilot or crew, by or on behalf of any "Insured." CU 60 02 06 97 (Page 5 of 15) 4. "Bodily injury" to: a. an employee of any "Insured" arising out of and in the course of: I. employment by any "In- sured"; or ii. performing duties related to the conduct of any "In- sured's" business; or b. the spouse, child, parent, brother or sister of that employee as a consequence of Paragraph 4.a. This exclusion applies: a. whether any "Insured" liable as an employer other capacity; and B. "Auto" means a land motor vehicle, trailer or semitrailer designed for travel on public roads, including any attached machinery or equipment. "Auto" does not include "mo- bile equipment." C. "Bodily injury" means physical injury, sick- ness, or disease, including death of a per- son. "Bodily injury" also means mental injury, mental anguish, humiliation, or shock if directly resulting from physical injury, sickness, or disease to that person. D. "Claim" means any demand for monetary damages upon an "Insured" resulting from a covered "occurrence." E. "Impaired property" means tangible prop - may be erty, other than "your product" or "your work," that cannot be used or is less use- ful because: b. to any obligation to share dam- ages with or repay someone else who must pay damages because of the injury. V. DEFINITIONS A. "Advertising injury" means injury arising solely out of advertising activities of any "Insured" as a result of one or more of the following offenses during the policy pe- riod: 1. oral, written, televised, videotaped, or electronic publication of material that slanders or libels a person or organiza- tion or disparages a person's or or- ganization's goods, products or ser- vices; 2. oral, written, televised, videotaped, or electronic publication of material that violates a person's right of privacy; 3. misappropriation of advertising ideas or style of doing business; 4. infringement of copyright, title or slo- gan; or 5. mental injury, mental anguish, humili- ation, or shock, if directly resulting from Items A.1. through A.4. 1. it incorporates "your product" or "your work" that is known or thought to be defective, deficient, inadequate or dan- gerous; or 2. you have failed to fulfill the terms of a contract or agreement; if such property can be restored to use by: 1. the repair, replacement, adjustment or removal of "your product" or "your work'; or 2. your fulfilling the terms of the contract or agreement. F. "Insured" means each of the following, to the extent set forth: 1. The Named Insured meaning: a. Any person or organization listed in Item 1. of the Declarations, and any Company of which you own more than 50%, as of the effective date of this policy. b. Any organization you newly ac- quire or form, other than a part- nership, joint venture or limited liability company, and over which you maintain ownership or major- ity interest, will qualify to be a Named Insured. However: CU 60 02 06 97 (Page 6 of 15) (1) coverage under this provi- "unloading" of any "autos," aircraft or sion is afforded only until the watercraft unless such coverage is in- 90th day after you acquire or cluded under the policies listed in the form the organization or the Schedule of Underlying Insurance and end of the policy period, for no broader coverage than is pro - whichever is earlier; vided under such underlying policies. (2) coverage does not apply to Employees include "leased workers" "bodily injury," "property but not "temporary workers." "Leased damage," "personal injury" workers" are leased to you by a labor or "advertising injury" that leasing firm under an agreement be - occurred before you acquired tween you and the labor leasing firm or formed the organization; to perform related duties to the con - and duct of your business. "Leased work- ers" are not "temporary workers." (3) coverage applies only if the "Temporary workers" are persons fur - organization is included un- nished to you to substitute for perma- der the coverage provided by nent employees on leave or to meet the policies listed in the seasonal or short-term workload condi- Schedule of Underlying In- tions. surance and then for no o broader coverage than is 7. Any person, other than one of your provided under such under- employees, or organization while act - lying policies. ing as your real estate manager. 2. If you are an individual, you and your 8. Any person (other than your partners, spouse, but only with respect to the executive officers, directors, stockhol- conduct of a business of which you are ders or employees) or organizations the sole owner as of the effective date with respect to any "auto" owned by of this policy. you, loaned to you or hired by you or on your behalf and used with your per- 3. If you are a partnership or joint ven- mission. ture, the partners or members and their spouses but only as respects the However, the coverage granted by this conduct of your business. Provision 8. does not apply to any per- son using an "auto" while working in a 4. If you are a limited liability company, business that sells, services, repairs or the members or managers but only as parks "autos" unless you are in that respects the conduct of your business. business. 5. Any person or organization, other than 9. No person or organization is an "In - the Named Insured, included as an ad- sured" with respect to the conduct of ditional "Insured" by virtue of an "in- any current or past partnership or joint sured contract," and to which coverage venture that is not shown as a Named is provided by the "underlying insur- Insured in the Declarations. ance," and for no broader coverage than is provided by the "underlying G. "Insured contract" means any oral or writ - insurance" to such additional "In- ten contract or agreement entered into by sured." you and pertaining to your business under which you assume the "tort liability" of 6. Any of your partners, executive offi- another party to pay for "bodily injury" or cers, directors, or employees but only "property damage" to a third person or while acting within the scope of their organization, provided that the "bodily in - duties. jury" or "property damage" occurs subse- quent to the execution of the contract or However, the coverage granted by this Provision 6. does not apply to the own- ership, maintenance, use, "loading" or CU 60 02 06 97 (Page 7 of 15) agreement. 'Tort liability" means a civil liability that would be imposed by law in the absence of any contract or agreement. H. "Loading" or "unloading" means the han- dling of property: 1. after it is removed from the place where it is accepted for movement into or onto an aircraft, watercraft or "auto"; 2. while it is in or on an aircraft, water- craft or "auto"; 3. while it is being moved from an air- craft, watercraft or "auto" to the place where it is finally delivered. However, "loading" or "unloading" does not include the movement of property by means of a mechanical device, other than a hand truck, that is not attached to the aircraft, watercraft or "auto." I. "Mobile equipment" means any of the fol- lowing types of land vehicles, including any attached machinery or equipment: 1. bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; 2. vehicles maintained for use solely on or next to premises you own or rent; 3. vehicles that travel on crawler treads; 4. vehicles, whether self-propelled or not, maintained primarily to provide mobil- ity to permanently mounted: a. power cranes, shovels, loaders, diggers or drills; or b. road construction or resurfacing equipment such as graders, scrap- ers or rollers; 5. vehicles not described in 1., 2., 3., or 4. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: a. air compressors, pumps and gen- erators, including spraying, weld- ing, building cleaning, geophysi- cal exploration, lighting and well servicing equipment or b. cherry pickers and similar devices used to raise or lower workers; 6. vehicles not described in 1., 2., 3., or 4. above maintained primarily for pur- poses other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently at- tached equipment are not "mobile equipment" but will be considered "autos": a. equipment designed primarily for: (1) snow removal; (2) road maintenance, but not construction or resurfacing; or (3) street cleaning; b. cherry pickers and similar devices mounted on auto or truck chassis and used to raise or lower work- ers; and c. air compressors, pumps and gen- erators, including spraying, weld- ing, building cleaning, geophysi- cal exploration, lighting and well servicing equipment. J. "Occurrence" means: 1. as respects "bodily injury" or "prop- erty damage," an accident, including continuous or repeated exposure to substantially the same general harmful conditions; 2. as respects "personal injury," an of- fense arising out of the business of any "Insured" that results in "personal injury." All damages that arise from the same or related injurious material or acts will be considered as arising out of one 'occurrence," regardless of the CU 60 02 06 97 (Page 8 of 15) frequency or repetition thereof, the number and kind of media used and the number of claimants; 3. as respects "advertising injury," an of- fense committed in the course of ad- vertising your goods, products and ser- vices that results in "advertising in- jury." All damages that arise from the same or related injurious material or acts will be considered as arising out of one "occurrence," regardless of the frequency or repetition thereof, the number and kind of media used and the number of claimants. K. "Personal injury" means injury other than "bodily injury" or "advertising injury" aris- ing out of one or more of the following offenses during the policy period: 1. false arrest, detention or imprison- ment; 2. malicious prosecution; 3. the wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies by or on behalf of its owner, landlord or lessor; 4. oral, written, televised, videotaped, or electronic publication of material that slanders or libels a person or organiza- tion or disparages a person's or or- ganization's goods, products or ser- vices; 5. oral, written, televised, videotaped, or electronic publication of material that violates a person's right of privacy; or 6. mental injury, mental anguish, humili- ation, or shock, if directly resulting from Items K.1. through 5. L. 1. "Products -completed operations haz- ard" means all "bodily injury" and "property damage" from an "occur- rence" taking place away from prem- ises you own or rent and arising out of "your product" or "your work" except: a. products that are still in your physical possession; or b. work that has not yet been com- pleted or abandoned. 2. "Your work" will be deemed complet- ed at the earliest of the following times: a. When all of the work called for in your contract has been complet- ed. b. When all of the work to be done at the site has been completed if your contract calls for work at more than one site. c. When that part of the work done at a job site has been put to its intended use by any person or or- ganization other than another con- tractor or subcontractor working on the same project. Work that may need service, mainten- ance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. 3. This "products -completed operations hazard" does not include "bodily in- jury" or "property damage" arising out of: a. the transportation of property, un- less the injury or damage arises out of a condition in or on a ve- hicle created by the "loading" or "unloading" of it; b. the existence of tools, uninstalled equipment or abandoned or un- used materials. M. "Property damage" means: 1. physical injury to tangible property, in- cluding all resulting loss of use of that property. All such loss of use will be deemed to occur at the time of the physical injury that caused it; or 2. loss of use of tangible property that is not physically injured. All such loss will be deemed to occur at the time of the "occurrence" that caused it. N. "Suit" means a civil proceeding which seeks monetary damages because of "bod- ily injury," "property damage," "per- CU 60 02 06 97 (Page 9 of 15) sonal injury," or "advertising injury" to which this insurance applies. "Suit" in- cludes: 1. an arbitration proceeding in which such damages are claimed and to which you must submit or do submit with our consent; or 2. any other alternative dispute resolution proceeding in which such damages are claimed and to which you submit with our consent. O. "Underlying insurance" means the insur- ance coverage provided under policies shown in the Schedule of Underlying In- surance, or any additional policies agreed to by us in writing. It includes any policies issued to replace those policies during the term of this insurance that provide: 1. at least the same policy limits; and 2. insurance for the same hazards, except as to any modifications which are agreed to by us in writing. P. "Your product" means: 1. Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by: a. you; b. others trading under your name; or c. a person or organization whose business or assets you have ac- quired; and 2. Containers (other than vehicles) materi- als, parts or equipment furnished in connection with such goods or pro- ducts. "Your product" includes: 1. warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your product"; and 2. the providing of or failure to provide warnings or instructions. "Your product" does not include vending machines or other property rented to or located for the use of others but not sold. Q. "Your work" means: 1. work or operations performed by you or on your behalf; and 2. materials, parts or equipment fur- nished in connection with such work or operations. "Your work" includes: 1. warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your work"; and 2. the providing of or failure to provide warnings or instructions. VI. Conditions A. Appeals If the "Insured" or an "Insured's" under- lying insurers do not appeal a judgment in excess of the "retained limit," we have the right to make such an appeal. If we elect to appeal, our liability on such an award or judgment will not exceed our Limits of Insurance as stated in Item 4. of the Dec- larations plus the cost and expense of such appeal. B. Audit We may audit and examine your books and records as they relate to this policy at any time during the period of this policy and for up to three years after the expira- tion or termination of this policy. C. Bankruptcy or Insolvency The bankruptcy, insolvency or inability to pay of any "Insured" or the bankruptcy, insolvency or inability to pay of any of the Underlying Insurers will not relieve us from the payment of any "claim" or "suit" covered by this policy. Under no circum- stances will such bankruptcy, insolvency or inability to pay require us to drop down and replace the "retained limit" or assume any obligation with the "retained limit." CU 60 02 06 97 (Page 10 of 15) D. Cancellation 1. You may cancel this policy. You must mail or deliver advance written notice to us stating when the cancellation is to take effect. 2. We may cancel this policy. If we cancel because of nonpayment of premium, we must mail or deliver to you not less than ten (10) days advance written no- tice stating when the cancellation is to take effect. If we cancel for any other reason, we must mail or deliver to you not less than thirty (30) days advance written notice stating when the can- cellation is to take effect. Mailing that notice to you at your mailing address shown in Item 1. of the Declarations will be sufficient to prove notice. 3. The policy period will end on the day and hour stated in the cancellation no- tice. 4. If we cancel, final premium will be cal- culated pro rata based on the time this policy was in force. Final premium will not be less than the Minimum Pre- mium as shown in Item 3. of the Dec- larations. 5. If you cancel, final premium will be more than pro rata; it will be based on the time this policy was in force and increased by our short rate cancellation table and procedure. Final premium will not be less than the Minimum Pre- mium as shown in Item 3. of the Dec- larations. 6. Premium adjustment may be made at the time of cancellation or as soon as practicable thereafter but the cancella- tion will be effective even if we have not made or offered any refund due you. Our check or our representative's check, mailed or delivered, will be suf- ficient tender of any refund due you. 7. The first Named Insured in Item 1. of the Declarations will act on behalf of all other "Insured's" with respect to the giving and receiving of notice of can- cellation and the receipt of any refund that may become payable under this policy. 8. Any of these provisions that conflict with a law that controls the cancella- tion of the insurance in this policy is changed by this statement to comply with the law. E. Changes Notice to any agent or knowledge pos- sessed by any agent or any other person will not effect a waiver or a change in any part of this policy. This policy can only be changed by a written endorsement that becomes a part of this policy and that is signed by one of our authorized repre- sentatives. F. Duties in The Event of An Occurrence, Claim Or Suit 1. You must see to it that we are notified as soon as practicable of an "occur- rence" which may result in a "claim" or "suit" under this policy. To the ex- tent possible, notice will include: a. how, when and where the "occur- rence" took place; b. the names and addresses of any injured person and witnesses; c. the nature and location of any in- jury or damage arising out of the "occurrence." 2. If a "claim" or "suit" against any "In- sured" is reasonably likely to involve this policy you must notify us in writ- ing as soon as practicable. 3. You and any other involved "Insured" must: a. immediately send us copies of any demands, notices, summons- es or legal papers received in con- nection with the "claim" or "suit"; b. authorize us to obtain records and other information; CU 60 02 06 97 (Page 11 of 15) c. cooperate with us in the inves- 1. to keep the policies listed in the Sched- tigation, settlement or defense of ule of Underlying Insurance in full the "claim" or "suit"; and force and effect; d. assist us, upon our request, in the 2. that any renewals or replacements of enforcement of any right against the policies listed in the Schedule of any person or organization which Underlying Insurance will not be more may be liable to the "Insured" be- restrictive in coverage; cause of injury or damage to which this insurance may also ap- 3. that the Limits of Insurance of the poli- ply. cies listed in the Schedule of Under- lying Insurance will be maintained ex- 4. The "Insured's" will not, except at cept for any reduction or exhaustion of their own cost, voluntarily make a pay- aggregate limits by payment of ment, assume any obligation, or incur "claims" or "suits" for "occurrences" any expense, other than for first aid, covered by "underlying insurance"; without our consent. and G. Inspection We have the right, but are not obligated, to inspect the premises and operations of any "Insured" at any time. Our inspections are not safety inspections. They relate only to the insurability of the premises and op- erations of any "Insured" and the premi- ums to be charged. We may give you re- ports on the conditions we find. We may also recommend changes. While they may help reduce losses, we do not undertake to perform the duty of any person or organi- zation to provide for the health or safety of any employees or the public. We do not warrant that the premises or operations of any "Insured" are safe or healthful or that they comply with laws, regulations, codes or standards. H. Legal Actions Against Us There will be no right of action against us under this insurance unless: 1. you have complied with all the terms of this policy; and 2. the amount you owe has been deter- mined by settlement with our consent or by actual trial and final judgment; This insurance does not give anyone the right to add us as a party in an action against you to determine your liability. I. Maintenance of Underlying Insurance During the period of this policy, you agree: 4. that the terms, conditions and endorse- ments of the policies listed in the Schedule of Underlying Insurance will not change during the period of this policy such as to increase the coverage afforded under this policy. If you fail to comply with these require- ments, we will only be liable to the same extent that we would have been had you fully complied with these requirements. J. Other Insurance If other insurance applies to a loss that is also covered by this policy, this policy will apply excess of the other insurance. Noth- ing herein will be construed to make this policy subject to the terms, conditions and limitations of such other insurance. How- ever, this provision will not apply if the other insurance is specifically written to be excess of this policy. K. Premium The first Named Insured designated in Item 1. of the Declarations will be respon- sible for payment of all premiums when due. The premium for this policy will be com- puted on the basis set forth in Item 3. of the Declarations. At the beginning of the policy period, you must pay us the Ad- vance Premium shown in Item 3. of the Declarations. When this policy expires or if it is can- celed, we will compute the earned pre- mium for the time this policy was in force. If this policy is subject to audit adjust- CU 60 02 06 97 (Page 12 of 15) ment, the actual exposure basis will be used to compute the earned premium. If the earned premium is greater than the Advance Premium, you will promptly pay us the difference. If the earned premium is less than the Advance Premium, we will return the difference to you. But in any event we will retain the Minimum Pre- mium as shown in Item 3. of the Declara- tions for each twelve months of our policy period. L. Separation of Insureds Except with respect to our Limits of Insur- ance and any rights or duties specifically assigned to the first Named Insured des- ignated in Item 1. of the Declarations, this insurance applies: 1. as if each Named Insured were the only Named Insured; and 2. separately to each "Insured" against whom "claim" is made or "suit" brought. M. Transfer of Rights of Recovery Against Others to Us If any "Insured" has rights to recover all or part of any payment we have made under this policy, those rights are transferred to us. The "Insured" must do nothing after loss to impair those rights and must help us enforce them. Any recoveries will be applied as follows: 1. any interests, including the "Insured," that have paid an amount in excess of our payment under this policy will be reimbursed first; 2. we then will be reimbursed up to the amount we have paid; and 3. lastly, any interests, including the "In- sured," over which our insurance is excess, are entitled to claim the resi- due. Expenses incurred in the exercise of rights of recovery will be apportioned between the interests, including the "Insured," in the ratio of their respective recoveries as finally settled. N. Terms Conformed to Statute The terms of this Policy which are in con- flict with the statutes of the state where this Policy is issued are amended to con- form to such statutes. If we are prevented by law or statute from paying on behalf of an "Insured," then we will, where permitted by law or statute, indemnify the "Insured" for those sums in excess of the "retained limit." O. Transfer of Your Rights And Duties Your rights and duties under this policy may not be transferred without our written consent. If you die or are legally declared bankrupt, your rights and duties will be transferred to your legal representative but only while acting within the scope of duties as your legal representative. However, notice of cancellation sent to the first Named In- sured designated in Item 1. of the Declara- tions and mailed to the address shown in this policy will be sufficient notice to effect cancellation of this policy. P. When Loss Is Payable Coverage under this policy will not apply unless and until any "Insured" or an "In- sured's" underlying insurer is obligated to pay the "retained limit." When the amount of loss has finally been determined, we will promptly pay on be- half of the "Insured" the amount of loss falling within the terms of this policy. You will promptly reimburse us for any amount within the Self -Insured Retention advanced by us at our discretion on behalf of any "Insured." CU 60 02 06 97 (Page 13 of 15) NUCLEAR ENERGY LIABILITY EXCLUSION This policy does not apply to: Canada, this Exclusion 2.c. applies only to "nuclear property damage" to such "nu- 1. Any liability, injury or damage: clear facility" and any property therein. a. with respect to which any "Insured" under the policy is also an "Insured" under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Associ- ation, Mutual Atomic Energy Liability Un- derwriters, Nuclear Insurance Association of Canada or any of their successors, or would be an "Insured" under any such policy but for its termination upon exhaus- tion of its Limits of Insurance; or b. resulting from the "hazardous properties" of "nuclear material" and with respect to which (a) a person or organization is re- quired to maintain financial protection pur- suant to the Atomic Energy Act of 1954, or any law amendatory thereof, or (b) any "Insured" is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement en- tered into by the United States of America, or any agency thereof, with any person or organization. 2. Any injury or "nuclear property damage" re- sulting from the "hazardous properties" of "nuclear material," if: a. the "nuclear material" (a) is at any "nu- clear facility" owned by, or operated by or on behalf of, any "Insured" or (b) has been discharged or dispersed therefrom; b. the "nuclear material" is contained in "spent fuel" or "nuclear waste" at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of any "Insured"; or c. the injury or "nuclear property damage" arises out of the furnishing by any "In- sured" of services, materials, parts or equipment in connection with the plan- ning, construction, maintenance, operation or use of any "nuclear facility," but if such facility is located within the United States of America, its territories or possessions or 3. As used in this exclusion: a. "Hazardous properties" includes radioac- tive, toxic or explosive properties. b. "Nuclear facility" means: i. any "nuclear reactor"; ii. any equipment or device designed or used for (1) separating the isotopes of urani- um or plutonium, (2) processing or utilizing "spent fuel' or (3) handling, processing or packaging "nuclear waste"; iii. any equipment or device used for the processing, fabricating or alloying of "special nuclear material" if at any time the total amount of such material in the custody of any "Insured" at the premises where such equipment or de- vice is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination there- of, or more than 250 grams of uranium 235; iv. any structure, basin, excavation, prem- ises or place prepared or used for the storage or disposal of, "nuclear waste," and includes the site on which any of the foregoing is located, all op- erations considered on such site and all premises used for such operations. c. "Nuclear material" means "source mate- rial," "special nuclear material" or by- product material. d. "Nuclear property damage" includes all forms of radioactive contamination of property. CU 60 02 06 97 (Page 14 of 15) e. "Nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable ma- terial. f. "Nuclear waste" means any nuclear waste material (a) containing "by-product mate- rial' other than the tailings of nuclear waste produced by the extraction or con- centration of uranium or thorium from any ore processed primarily for its "source ma- terial" content, and (b) resulting from the operation by any person or organization of any "nuclear facility" included within the definition of "nuclear facility" under Para- graph 3.b.i. or 3.b.11. g. "Source material," "special nuclear mate- rial," and "by-product material" have the meanings given them in the Atomic En- ergy Act of 1954 or in any law amendatory thereof. h. "Spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a "nuclear reactor." This endorsement does not change any other pro- vision of the policy. In Witness Whereof, we have caused this policy to be executed and attested, but this policy will not be valid unless countersigned by one of our duly authorized representatives, where required by law. CU 60 02 06 97 (Page 15 of 15) COMMERCIAL UMBRELLA CU 61 06 01 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AUTO LIABILITY - FOLLOWING FORM This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE PART 1. The following exclusion is added to Section IV. - EXCLUSIONS: This insurance does not apply to: Any liability arising out of the ownership, maintenance, use or entrustment to others of any "auto." Use includes operation and 'loading" or "unloading". This exclusion applies even if the claims against any "Insured" allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that "Insured". This exclusion does not apply to the extent that insurance for such liability is provided by a policy listed in the Schedule of Underlying Insurance, and for no broader coverage than is provided by such policy 2. Paragraph B. under Section V. DEFINITIONS is replaced by the following: B. "Auto" means an auto as it is defined in the applicable "underlying insurance". This endorsement does not change any other provision of the policy. © 2012 Liberty Mutual Insurance CU 61 06 01 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 1 COMMERCIAL UMBRELLA CU 61 50 10 18 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CONTRACTORS LIMITATION ENDORSEMENT This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE FORM A. Section IV. - Exclusions is amended as follows: 1. Exclusions F. and G. are deleted. 2. The following exclusions are added: This insurance does not apply to: a. Any liability assumed by any "Insured" under any "insured contract". However, this exclusion does not apply to the extent that insurance for such liability is provided by a policy listed in the Schedule of Underlying Insurance, and for no broader coverage than is provided by such policy; b. Any "property damage": (1) To "your product" arising out of it or any part of it; (2) To "your work" arising out of it or any part of it and included in the "products -completed operations hazard"; (3) To property leased or rented to, occupied or used by or in the care, custody or control of any "Insured" or as to which any "Insured" is for any purpose exercising physical control; or (4) Arising out of the "explosion hazard", the "collapse hazard" or the "underground property damage hazard," However, this exclusion does not apply to the extent that insurance for such "property dam- age" is provided by a policy listed in the Schedule of Underlying Insurance, and for no broader coverage than is provided by such policy; c. Any liability arising out of any project insured under a consolidated (wrap-up) insurance pro- gram or any similar rating plan. This exclusion applies whether or not the consolidated (wrap- up) insurance program: (1) Provides coverage identical to that provided by this Coverage Part; (2) Has limits adequate to cover all "claims"; or (3) Remains in effect. d. Any liability arising out of the rendering of or failure to render any professional services by you or on your behalf, but only with respect to either or both of the following operations: (1) Providing engineering, architectural or surveying services to others in your capacity as an engineer, architect or surveyor; and/or (2) Providing, or hiring independent professionals to provide, engineering, architectural or surveying services © 2018 Liberty Mutual Insurance CU 61 50 10 18 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 2 in connection with construction work you perform. This exclusion applies even if the "claims" against any "Insured" allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that "Insured", if the 'occurrence", offense or other act, error or omission involved the rendering of or failure to render any professional services by you or on your behalf with respect to the operations described above. Professional services include: (1) Preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; and (2) Supervisory or inspection activities performed as part of any related architectural or en- gineering activities. Professional services do not include services within construction means, methods, techniques, sequences and procedures employed by you in connection with your operations in your capac- ity as a construction contractor. B. For the purposes of this endorsement, the following are added to Section V. - Definitions: 1. "Collapse hazard" includes "structural property damage" and any resulting "property dam- age" to any other property at any time. 2. "Explosion hazard" includes "property damage" arising out of blasting or explosion. The "ex- plosion hazard" does not include "property damage" arising out of the explosion of air or steam vessels, piping under pressure, prime movers, machinery or power transmitting equip- ment. 3. "Structural property damage" means the collapse of or structural injury to any building or structure due to: a. Grading of land, excavating, burrowing, filling, back -filling, tunneling, pile driving, cofferdam work or caisson work; or b. Moving, shoring, underpinning, raising or demolition of any building or structure or re- moval or rebuilding of any structural support of that building or structure. 4. "Underground property damage hazard" includes "underground property damage" and any resulting "property damage" to any other property at any time. 5. "Underground property damage" means "property damage" to wires, conduits, pipes, mains, sewers, tanks, tunnels, any similar property, and any apparatus used with them beneath the surface of the ground or water, caused by and occurring during the use of mechanical equip- ment for the purpose of grading land, paving, excavating, drilling, burrowing, filling, back - filling or pile driving. This endorsement does not change any other provision of the policy. © 2018 Liberty Mutual Insurance Page 2 of 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission. CU 61 50 10 18 COMMERCIAL UMBRELLA CU 61 90 08 10 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WASHINGTON CHANGES -CANCELLATION AND NONRENEWAL This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE PART EXCESS LIABILITY COVERAGE PART 1. Condition, D. Cancellation under Section VI. Conditions is replaced by the following: D. Cancellation 1. The first Named Insured shown in the Declarations may cancel this policy by notifying us of the insurance producer in one of the following ways: a. Written notice by mail, fax or e-mail; b. Surrender of the policy or binder; or c. Verbal notice. Upon receipt of such notice, we will cancel this policy or any binder issued as evidence of coverage, effective on the later of the following: a. The date on which notice is received or the policy or binder is surrendered; or b. The date of cancellation requested by the first Named Insured. 2. We may cancel this policy by mailing or delivering to the first Named Insured and the first Named Insured's agent or broker written notice of cancellation, including the actual reason for the cancellation, to the last mailing address known to us, at least: a. 10 days before the effective date of cancellation if we cancel for nonpayment of premium; or b. 45 days before the effective date of cancellation if we cancel for any other reason. 3. We will also mail or deliver to any mortgage holder, pledgee or other person shown in this policy to have an interest in any loss which may occur under this policy, at their last mailing address known to us, written notice of cancellation, prior to the effective date of cancellation. This notice will be the same as that mailed or delivered to the first Named Insured. 4. Notice of cancellation will state the effective date of cancellation. The policy period will end on that date. 5. If this policy is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata. If the first Named Insured cancels, the refund will be at least 90% of the pro rata refund. The cancellation will be effective even if we have not made or offered a refund. 6. If notice is mailed, proof of mailing will be sufficient proof of notice. 2. The following Condition is added to Section VI. Conditions and supersedes any provision to the con- trary: Nonrenewal ©2010 Liberty Mutual Insurance Company. All rights reserved. CU 61 90 08 10 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 2 We may elect not to renew this policy by mailing or delivering written notice of nonrenewal, stating the reasons for nonrenewal, to the first Named Insured and the Named Insured's agent or broker, at their last mailing addresses known to us. We will also mail to any mortgage holder, pledge or other person shown in the policy to have an interest in any loss which may occur under this policy, at their last mailing address known to us, written notice of nonrenewal. We will mail or deliver these notices at least 45 days before the: 1. Expiration of the policy; or 2. Anniversary date of this policy if this policy has been written for a term of more than one year. Otherwise, we will renew this policy unless: 1. The first Named Insured fails to pay the renewal premium after we have expressed our willingness to renew, including a statement of the renewal premium, to the first Named Insured and the first Named Insured's insurance agent, at least 20 days before the expiration date; or 2. Other coverage acceptable to the "Insured" has been procured prior to the expiration date of the policy; or 3. The policy clearly states that it is not renewable, and is for a specific line, subclassification, or type of coverage that is not offered on a renewable basis. ©2010 Liberty Mutual Insurance Company. All rights reserved. CU 61 90 08 10 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 2 of 2 COMMERCIAL UMBRELLA CU 64 79 05 09 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. RECORDING AND DISTRIBUTION OF MATERIAL OR INFORMATION IN VIOLATION OF THE LAW EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE PART The following exclusion is added to Section IV - Exclusions: This insurance does not apply to: Any liability arising directly or indirectly out of any action or omission that violates or is alleged to violate: 1. The Telephone Consumer Protection Act (TCPA), including any amendment of or addition to such law; 2. The CAN-SPAM Act of 2003, including any amendment of or addition to such law; 3. The Fair Credit Reporting Act (FCRA), and any amendment of or addition to such law, including the Fair and Accurate Credit Transaction Act (FACTA); or 4. Any federal, state or local statute, ordinance or regulation, other than TCPA, CAN-SPAM Act of 2003 or FCRA and their amendments and additions, that addresses, prohibits, or limits the printing, dissemination, disposal, collecting, recording, sending, transmitting, communicating or distribution of material or information. This endorsement does not change any other provision of the policy. CU 64 79 05 09 Includes copyrighted material of Insurance Services Office, with its permission. Page 1 of 1 COMMERCIAL UMBRELLA CU 64 82 10 17 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDMENT -ELECTRONIC DATA This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE FORM Section V. DEFINITIONS is amended as follows: 1. The following is added to Definition M. For the purposes of this insurance, "electronic data" is not tangible property. 2. For the purposes of this endorsement, the following definition is added: "Electronic data" means, information, facts or programs stored as or on, created or used on, or transmitted to or from computer software, including systems and applications software, hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other media which are used with electronically controlled equipment. This endorsement does not change any other provision of the policy. © 2017 Liberty Mutual Insurance CU 64 82 10 17 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 1 CU 64 87 10 05 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ECONOMIC OR TRADE SANCTIONS CONDITION ENDORSEMENT The following is added to Section VI - CONDITIONS: Economic or Trade Sanctions If coverage for a claim or suit under this policy is in violation of any United States of America economic or trade sanctions, including but not limited to, sanctions administered and enforced by the United States Treasury Department's Office of Foreign Assets Control ("OFAC"), then coverage for that claim or suit will be null and void. This endorsement does not change any other provision of the policy. CU 64 87 10 05 CU 64 92 01 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. MOBILE EQUIPMENT - FOLLOWING FORM This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE PART 1. The following exclusion is added to Section IV. - EXCLUSIONS: This insurance does not apply to: Any liability for or arising out of the ownership, maintenance, use or entrustment to others of any "mobile equipment". Use includes operation and "loading" or "unloading". This exclusion applies even if the claims against any "Insured" allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by the "Insured". This exclusion does not apply to the extent that insurance for such liability is provided by a policy listed in the Schedule of Underlying Insurance, and for no broader coverage than is provided by such policy 2. Paragraph I. under Section V. DEFINITIONS is replaced by the following: I. "Mobile equipment" means mobile equipment as it is defined in the applicable "underlying insur- ance". This endorsement does not change any other provision of the policy. © 2012 Liberty Mutual Insurance CU 64 92 01 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 1 CU 64 95 12 07 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against any person or organization for whom you perform work under a written contract that requires you to obtain this agreement from us to the extent that such insurance is provided by a policy listed in the Schedule of Underlying Insurance, and for no broader coverage than is provided by such policy. This endorsement does not change any other provisions of the policy. CU 64 95 12 07 COMMERCIAL UMBRELLA CU 65 08 01 15 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION OF PUNITIVE DAMAGES RELATED TO A CERTIFIED ACT OF TERRORISM This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE FORM A. The following exclusion is added: This insurance does not apply to: TERRORISM PUNITIVE DAMAGES Damages arising, directly or indirectly, out of a "certified act of terrorism" that are awarded as punitive damages. B. The following definition is added: "Certified act of terrorism" means an act that is certified by the Secretary of the Treasury, in accordance with the provisions of the federal Terrorism Risk Insurance Act, to be an act of terrorism pursuant to such Act. The criteria contained in the Terrorism Risk Insurance Act for a "certified act of terrorism" include the following: 1. The act resulted in insured losses in excess of $5 million in the aggregate, attributable to all types of insurance subject to the Terrorism Risk Insurance Act; and 2. The act is a violent act or an act that is dangerous to human life, property or infrastructure and is committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. C. The terms and limitations of any terrorism exclusion, or the inapplicability or omission of a terrorism exclusion, do not serve to create coverage for injury or damage that is otherwise excluded under this policy. This endorsement does not change any other provision of the policy. © 2015 Liberty Mutual Insurance CU 65 08 01 15 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 1 COMMERCIAL UMBRELLA CU 88 01 12 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAR LIABILITY EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE PART Exclusion M. under Section IV - Exclusions is replaced by the following: This insurance does not apply to: M. "Bodily injury", "property damage", "personal injury" or "advertising injury", however caused, arising, directly or indirectly, out of: 1. War, including undeclared or civil war; or 2. Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or 3. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these. This endorsement does not change any other provision of the policy. CU 88 01 12 02 Includes copyrighted material of Insurance Services Office, with its permission. Page 1 of 1 COMMERCIAL UMBRELLA CU 88 02 05 09 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NON -CUMULATION OF LIABILITY (SAME OCCURRENCE) This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE PART The following is added to paragraph D. under SECTION II - LIMITS OF INSURANCE: Non -Cumulation of Liability - Same Occurrence - If one "occurrence" causes "bodily injury" or "property damage" during the policy period and during the policy period of one or more prior, or future, commercial umbrella policy(ies) issued to you by us, then this policy's Each Occurrence Limit will be reduced by the amount of each payment made by us under the other policy(ies) because of such "occurrence." This endorsement does not change any other provision of the policy. CU 88 02 05 09 Includes copyrighted material of Insurance Services Office, with its permission. Page 1 of 1 COMMERCIAL UMBRELLA CU 88 27 12 07 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WASHINGTON EMPLOYMENT -RELATED PRACTICES EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE PART Exclusion O. under Section IV - Exclusions is replaced by the following: This insurance does not apply to: O. "Bodily injury", "personal injury" or "advertising injury" to: 1. A person arising out of any: a. Refusal to employ that person; b. Termination of that person's employment; or c. Employment -related practices, policies, acts or omissions, such as coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation, discrimination or malicious prosecution directed at that person; or 2. The spouse, child, parent, brother or sister of that person as a consequence of "bodily injury" to that person at whom any of the employment -related practices described in Paragraphs 1.a., 1.b., or 1.c. above is directed. This exclusion applies: 1. Whether the injury -causing event described in Paragraphs 1.a., 1.b. or 1.c. above occurs before employment, during employment or after employment of that person; 2. Whether the insured may be liable as an employer or in any other capacity; and 3. To any obligation to share damages with or repay someone else who must pay damages because of the injury. However, Paragraphs 1.a. and 2. of this exclusion do not apply if such "bodily injury", "personal injury" or "advertising injury" is sustained by any employee of the insured whose employment is subject to the Industrial Insurance Act of Washington (Washington Revised Code Title 51). This endorsement does not change any other provision of the policy. CU 88 27 12 07 Includes copyrighted material of Insurance Services Office, with its permission Page 1 of 1 COMMERCIAL UMBRELLA CU 88 31 05 09 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PERSONAL AND ADVERTISING INJURY - FOLLOWING FORM This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE PART A. SECTION I. COVERAGE under the INSURING AGREEMENTS is replaced by the following: I. COVERAGE A. We will pay on behalf of the "Insured" those sums in excess of the "Retained Limit" that the "Insured" becomes legally obligated to pay by reason of liability imposed by law or assumed by the "Insured" under an "insured contract" because of "bodily injury", "property damage" or "personal and advertising injury" to which this insurance applies. The amount we will pay for damages is limited as described in the INSURING AGREEMENT, SECTION II. LIMITS OF INSURANCE. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under SECTION III. DEFENSE. B. This insurance applies to: 1. "Bodily injury" or "property damage" only if: a. The "bodily injury" or "property damage" occurs during the Policy Period; and b. The "bodily injury" or "property damage" is caused by an 'occurrence" happening anywhere; and c. Prior to the Policy Period, no "Insured" listed under paragraphs 1.a., 2., 3. or 4. of definition F. under SECTION V. DEFINITIONS, and no employee authorized by you to give or receive notice of an 'occurrence" or "claim", knew that the "bodily injury" or "property damage" had occurred, in whole or in part. If such a listed "Insured" or authorized employee knew, prior to the Policy Period, that the "bodily injury" or "property damage" occurred, then any continuation, change or resumption of such "bodily injury" or "property damage" during or after the Policy Period will be deemed to have been known prior to the Policy Period. 2. "Personal and advertising injury" caused by an 'offense" arising out of your business but only if the 'offense" was committed during the Policy Period. C. "Bodily injury" or "property damage" which occurs during the Policy Period and was not, prior to the Policy Period, known to have occurred by any "Insured" listed under paragraphs 1.a., 2., 3. or 4. of definition F. under SECTION V. DEFINITIONS, or any employee authorized by you to give or receive notice of an 'occurrence" or "claim", includes any continuation, change or resumption of that "bodily injury" or "property damage" after the end of the Policy Period. D. "Bodily injury" or "property damage" will be deemed to have been known to have occurred at the earliest time when any "Insured" listed under paragraphs 1.a., 2., 3. or 4. of definition F. under SECTION V. DEFINITIONS, or any employee authorized by you to give or receive notice of an 'occurrence" or "claim": 1. Reports all, or any part, of the "bodily injury" or "property damage" to us or any other insurer; 2. Receives a written or verbal demand or "claim" for damages because of "bodily injury" or "property damage"; or 3. Becomes aware by any other means that "bodily injury" or "property damage" has oc- curred or has begun to occur. E. Damages because of "bodily injury" include damages claimed by any person or organizati on for care, loss or services or death resulting at any time from the "bodily injury". ©2010 Liberty Mutual Insurance Company. All rights reserved. CU 88 31 05 09 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 4 B. SECTION II. LIMITS OF INSURANCE is amended as follows: 1. Paragraph B. is replaced by the following: B. The General Aggregate Limit is the most we will pay for all damages covered under SECTION I. COVERAGE of the INSURING AGREEMENTS, except: 1. Damages included in the "products -complete operations hazard"; and 2. Coverages included in the policies listed in the Schedule of Underlying Insurance to which no underlying aggregate limit applies. The amount stated on the Declarations as the General Aggregate Limit is the most we will pay for all damages arising out of any "bodily injury", "property damage" or "personal and ad- vertising injury" subject to an aggregate limit in the "underlying insurance". The General Aggregate applies separately and in the same manner as the aggregate limits in the "underlying insurance". 2. Paragraph D. is replaced by the following: D. Subject to B. or C. in SECTION II. LIMITS OF INSURANCE, whichever applies, the Each Occur- rence Limit is the most we will pay for "bodily injury", "property damage" or "personal and advertising injury" covered under SECTION I. COVERAGE of the INSURING AGREEMENTS because of all: 1. "Bodily injury" or "property damage" arising out of one "occurrence"; and 2. "Personal and advertising injury" arising out of one "offense". 3. Provision 2. of paragraph G. is replaced by the following: 2. the amount stated in the Declarations as the Self- Insured Retention as a result of any one "occurrence" or one "offense" not covered by the underlying policies listed in the Schedule of Underlying Insurance nor by any other insurance providing coverage to the "Insured" during the Policy Period; C. SECTION III. DEFENSE is amended as follows: 1. Paragraph A. is replaced by the following: A. We will have the right and duty to investigate any "claim" and defend any "suit" seeking damages covered by the terms and conditions of the policy when: 1. The applicable Limits of Insurance of the underlying policies listed in the Schedule of Underlying Insurance and the Limits of Insurance of any other insurance providing cov- erage to the "Insured" have been exhausted by actual payment of "claims" for any "occur- rence" or "offense" to which this policy applies; or 2. Damages are sought for any one "occurrence" or "offense" which is covered by this policy but not covered by any underlying policies listed in the Schedule of Underlying Insurance or any other insurance providing coverage to the "Insured". 2. Paragraph 13.1. is replaced by the following: 1. We will investigate any "claim" and defend any "suit" against the "Insured" seeking damages on account of any "occurrence" or "offense" covered by this policy. We have the right to investigate, defend and settle the "claim" or "suit" as we deem expedient. 3. Paragraph D. is replaced by the following: D. In all other instances except paragraph A. in SECTION III. DEFENSE, we will not be obligated to assume charge of the investigation, settlement or defense of any "claim" or "suit" against the "Insured." We will, however, have the right and will be given the opportunity to participate in the settlement, defense and trial of any "claim" or "suit" relative to any "occurrence" or "offense" which, in our opinion, may create liability on our part under the terms of this policy. If we exercise such right, we will do so at our own expense. ©2010 Liberty Mutual Insurance Company. All rights reserved. CU 88 31 05 09 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 2 of 4 D. SECTION IV. EXCLUSIONS is amended as follows: 1. Exclusion J. is replaced by the following: This insurance does not apply to: J. "Personal and advertising injury" except to the extent that insurance is provided for such "personal and advertising injury" by a policy listed in the Schedule of Underlying Insurance, and for no broader coverage than is provided by such policy. 2. Exclusion K. is deleted. E. SECTION V. DEFINITIONS is amended as follows: 1. Definition A. is deleted and replaced by the following: A. "Advertisement" means a notice that is broadcast or published to the general public or specific market segments about your goods, products or services for the purpose of attracting cus- tomers or supporters. For the purposes of this definition: 1. Notices that are published include material placed on the Internet or on similar electronic means of communication; and 2. Regarding web -sites, only that part of a web -site that is about your goods, products or services for the purposes of attracting customers or supporters is considered an adver- tisement. 2. The following is added to definition C.: "Bodily injury" does not include "bodily injury" arising out of "personal and advertising injury". 3. Definition D. is replaced by the following: "Claim" means any demand for monetary damages upon any "Insured" resulting from a covered "occurrence" or "offense". 4. Definition J. is replaced by the following: J. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions. 5. Definition K. is deleted and replaced by the following: K. "Personal and advertising injury" means injury other than "bodily injury", arising out of one or more of the following "offenses": 1. False arrest, detention or imprisonment; 2. Malicious prosecution; 3. The wrongful eviction from, wrongful entry into, or invasion of the right of private occu- pancy of a room, dwelling or premises that a person occupies, committed by or on behalf of the owner, landlord or lessor; 4. Oral or written publication, in any manner, of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services;. 5. Oral or written publication, in any manner, of material that violates a person's right of privacy; 6. The use of another's advertising idea in your "advertisement"; or 7. Infringing upon another's copyright, trade dress or slogan in your "advertisement". "Personal and advertising injury" includes "consequential bodily injury". 6. The following definitions are added: "Consequential bodily injury" means "bodily injury" arising out of "personal and advertising in- jury". "Offense" means an offense included in the definition of "personal and advertising injury". All damages that arise from exposure to the same act, publication or infringement are considered one "offense". ©2010 Liberty Mutual Insurance Company. All rights reserved. CU 88 31 05 09 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 3 of 4 F. SECTION VI. CONDITIONS is amended as follows: 1. Condition F. is amended as follows: a. The title is replaced by the following: F. Duties In the Event Of An Occurrence, Offense, Claim Or Suit b. Paragraph 1. is replaced by the following: 1. You must see to it that we are notified as soon as practicable of an "occurrence " or "offense" which may result in a "claim" or "suit" under this policy. To the extent possible, notice will include: a. How, when and where the "occurrence" or "offense" took place; b. The names and addresses of any injured person and witnesses; c. The nature and location of any injury or damage arising out of the "occurrence" or "offense". 2. Paragraph 3. of Condition I. is replaced by the following: 3. that the Limits of Insurance of the policies listed in the Schedule of Underlying Insurance will be maintained except for any reduction or exhaustion of aggregate limits by payment of "claims" or "suits" for "occurrences" or "offenses" covered by "underlying insurance"; and G. Wherever the defined term, "personal injury" or "advertising injury", appears in the following, such terms are deleted and replaced by the combined defined term "personal and advertising injury": 1. Commercial Umbrella Coverage Form provisions: a. Exclusions O., P. and Q. under SECTION IV. EXCLUSIONS; or b. Definitions F. and N. under SECTION V. DEFINITIONS; or 2. Any endorsements that are made a part of this policy. This endorsement does not change any other provision of the policy. ©2010 Liberty Mutual Insurance Company. All rights reserved. CU 88 31 05 09 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 4 of 4 CU 88 39 07 14 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDMENT OF DEFINITION OF INSURED This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE PART Paragraph F.5. under SECTION V. DEFINITIONS is replaced by the following: 5. Any person or organization who qualifies as an insured in the "underlying insurance" and does not qualify as an "Insured" in paragraphs 1., 2., 3., 4., 6., 7., or 8. of this definition F., but not beyond the extent of any limitation imposed under any contract or agreement. However: a. The coverage provided to such person or organization by this insurance: (1) Applies only to the extent permitted by law; and (2) Will not be broader than the coverage afforded by the applicable "underlying insurance"; and b. If coverage provided to such person or organization is required by a contract or agreement, the limits of insurance afforded to that person or organization will be: (1) The difference between the applicable "underlying insurance" limits and the minimum limits of insurance which you agreed to provide in a contract or agreement; or (2) The amount of insurance available under the applicable Limits of Insurance shown in the Declarations of this policy whichever is less. If the minimum limits of insurance you agreed to provide such person or organization in a contract or agreement are wholly within the "underlying insurance", this policy shall not apply. This endorsement shall not increase the applicable Limits of Insurance shown in the Declaratio ns. This endorsement does not change any other provision of the policy. © 2014 Liberty Mutual Insurance. All rights reserved. CU 88 39 07 14 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 1 COMMERCIAL UMBRELLA CU 88 41 02 10 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDMENT OF POLLUTION EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE PART Exclusion L. under SECTION IV. EXCLUSIONS is replaced by the following: This insurance does not apply to: L. 1. "Bodily injury", "property damage", "personal injury", "advertising injury" or "personal and ad- vertising injury" which would not have occurred in whole or part but for the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants" at any time. 2. Any loss, cost or expense arising out of any: a. Request, demand, order or statutory or regulatory requirement that any "Insured" or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants"; or b. Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of, "pollutants". Paragraph 1. of this exclusion L. does not apply to the following: (1) "Bodily injury" or "property damage" included within the "products -completed operations haz- ard". (2) "Bodily injury" or "property damage" arising out of the heat, smoke or fumes from a "hostile fire". (3) With respect to any premises, site or location which is or was at any time owned or occupied by or rented or loaned to any "Insured": (a) "Bodily injury" sustained within a building and caused by smoke, fumes, vapor or soot pro- duced by or originating from equipment used to heat, cool or dehumidify the building, or equipment that is used to heat water for personal use, by the building's occupants or their guests; or (b) "Bodily injury" or "property damage" for which you may be held liable if you are a contractor and the owner or lessee of such premises, site or location has been added to your policy as an additional "Insured" with respect to your ongoing operations performed for that additional "Insured" at that premises, site or location and such premises, site or location is not and never was owned or occupied by, or rented or loaned to, any "Insured", other than that additional "Insured". (4) "Bodily injury" or "property damage" arising out of the discharge, dispersal, seepage, migration, release or escape of "pollutants" at or from any premises, site or location on which any "Insured" or any contractors or subcontractors working directly or indirectly on any "Insured's" behalf are performing operations if the "pollutants" are not brought on or to the premises, site of location in connection with such operations by such "Insured", contractor or subcontractor. (5) "Bodily injury" or "property damage" arising out of the escape or fuels, lubricants or other operat- ing fluids which are needed to perform the normal electrical, hydraulic or mechanical functions necessary for the operation of "mobile equipment" or its parts, if such fuels, lubricants or other operating fluids escape from a vehicle part designed to hold, store or receive them. This exception to the exclusion does not apply if the "bodily injury" or "property damage" arises out of the intentional discharge, dispersal or release of the fuels, lubricants or other operating fluids, or if such fuels, lubricants or other operating fluids are brought on or to the premises, site or location with the intent that they be discharged, dispersed or released as part of the operations being performed by the "Insured" or any contractors or subcontractors working directly or indirectly on any "Insured's" behalf. ©2010 Liberty Mutual Insurance Company. All rights reserved. CU 88 41 02 10 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 2 (6) "Bodily injury" or "property damage" sustained within a building and caused by the release of gases, fumes or vapors from materials brought into that building in connection with operations being performed by you or on your behalf by a contractor or subcontractor. (7) Fuels, lubricants, fluids, exhaust gases or other similar "pollutants" that are needed for or result from the normal electrical, hydraulic or mechanical functioning of an "auto" covered by "scheduled underlying insurance" or its parts, if: (a) The "pollutants" escape, seep, migrate or are discharged, dispersed or released directly from an "auto" part designed by its manufacturer to hold, store, receive or dispose of such "pollu- tants"; and (b) The "bodily injury" or "property damage" does not arise out of the operation of any equipment listed in paragraphs 6.b. and 6.c. of the definition of "mobile equipment". (8) "Occurrences" that take place away from premises owned by or rented to an "Insured" with respect to "pollutants" not in or upon an "auto" covered by "underlying insurance" if: (a) The "pollutants" or any property in which the "pollutants" are contained are upset, overturned or damaged as a result of the maintenance or use of an "auto" covered by "underlying insur- ance"; and (b) The discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused directly by such upset, overturn or damage. However, the exceptions to this exclusion L. in paragraphs (1), (2), (3), (4), (5), (6), (7) or (8) above apply only to the extent that insurance is afforded for such "bodily injury" or "property damage" by "underlying insurance". Provided, however, that the coverage afforded by this policy will be no broader than the coverage afforded by such "underlying insurance": Regardless of the extent of "underlying insurance", none of the exceptions to this exclusion L. in paragraphs (1), (2), (3), (4), (5) or (6) above apply with respect to "bodily injury" or "property damage" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape or "pollutants": (I) At or from any premises site or location which is or was at any time used by or for any "Insured" or others for handling, storage, disposal, processing or treatment of waste; or (N) Which are or were at any time transported, handled, stored, treated, disposed of, or processed as waste by or for any "Insured", or any person or organization for whom you may be legally respon- sible; or (III) At or from any premises, site or location on which any "Insured" or any contractors or subcontrac- tors working directly or indirectly on any "Insured's" behalf are performing operations if the oper- ations are to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants". Paragraph 2. of this exclusion L. does not apply to liability for damages because of "property damage" that the "Insured" would have in the absence of such request, demand, order or statutory or regulatory requirement, or such claim or "suit" by or on behalf of a governmental authority to the extent that insurance is afforded for such damages by "underlying insurance". Provided, however, that the cov- erage afforded by this policy will be no broader than the coverage afforded by such "underlying insur- ance". As used in this exclusion: "Hostile fire" means one which becomes uncontrollable or breaks out from where it was intended to be. "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including, but not limited to, smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste material. Waste material includes materials which are intended to be or have been recycled, reconditioned or reclaimed. This endorsement does not change any other provision of the policy. ©2010 Liberty Mutual Insurance Company. All rights reserved. CU 88 41 02 10 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 2 of 2 COMMERCIAL UMBRELLA CU 89 19 01 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDMENT OF WATERCRAFT EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE PART Provision 2. of paragraph Q. under Section IV. EXCLUSIONS is replaced by the following: This insurance does not apply to: Q. The following items 1. through 4., except to the extent that such insurance is provided by a policy listed in the Schedule of Underlying Insurance, and for no broader coverage than is provided by such policy: 2. "Bodily injury" or "property damage" arising out of the ownership, maintenance, use or en- trustment to others of any watercraft if such watercraft is owned by, or chartered without a crew by or on behalf of, any "Insured". Use includes operation and "loading" or "unloading". This exclusion applies even if the claims against any "Insured" allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by the "Insured". This exclusion does not apply to a watercraft while ashore on premises you own or rent. This endorsement does not change any other provision of the policy. © 2012 Liberty Mutual Insurance CU 89 19 01 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 1 COMMERCIAL UMBRELLA CU 89 21 07 15 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDMENT OF AIRCRAFT EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE PART Provision 3. of paragraph Q. under Section IV. EXCLUSIONS is replaced by the following: This insurance does not apply to: Q. The following items 1. through 4., except to the extent that such insurance is provided by a policy listed in the Schedule of Underlying Insurance, and for no broader coverage than is provided by such policy: 3. "Bodily injury" or "property damage" arising out of the ownership, maintenance, use or en- trustment to others of any aircraft, if such aircraft is owned or operated by or rented or loaned to any "Insured". Use includes operation and 'loading" or "unloading". This exclusion applies even if the claims against any "Insured" allege negligence or other wrongdoing in the supervi- sion, hiring, employment, training or monitoring of others by the "Insured". This endorsement does not change any other provision of the policy. © 2015 Liberty Mutual Insurance CU 89 21 07 15 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 1 COMMERCIAL UMBRELLA CU 89 31 01 07 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WASHINGTON CONDITIONAL EXCLUSION OF TERRORISM INVOLVING NUCLEAR, BIOLOGICAL OR CHEMICAL TERRORISM (RELATING TO DISPOSITION OF FEDERAL TERRORISM RISK INSURANCE ACT) This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE PART A. Applicability Of The Provisions Of This Endorsement 1. The provisions of this endorsement become applicable commencing on the date when any one or more of the following first occurs. But if your policy (meaning the policy period in which this endorsement applies) begins after such date, then the provisions of this endorsement become applicable on the date your policy begins. a. The federal Terrorism Risk Insurance Program ("Program"), established by the Terrorism Risk Insurance Act, has terminated with respect to the type of insurance provided under this Cov- erage Part; or b. A renewal, extension or replacement of the Program has become effective without a require- ment to make terrorism coverage available to you and with revisions that: (1) Increase our statutory percentage deductible under the Program for terrorism losses. (That deductible determines the amount of all certified terrorism losses we must pay in a cal- endar year, before the federal government shares in subsequent payment of certified ter- rorism losses.); or (2) Decrease the federal government's statutory percentage share in potential terrorism losses above such deductible; or (3) Redefine terrorism or make insurance coverage for terrorism subject to provisions or re- quirements that differ from those that apply to other types of events or occurrences under this policy. 2. If the provisions of this endorsement become applicable, such provisions: a. Supersede any terrorism endorsement already endorsed to this policy that addresses "certified acts of terrorism" and/or "other acts of terrorism," but only with respect to an incident(s) of terrorism (however defined) which results in injury or damage that occurs on or after the date when the provisions of this endorsement become applicable (for claims made policies, such an endorsement is superseded only with respect to an incident of terrorism (however defined) that results in a claim for injury or damage first being made on or after the date when the provisions of this endorsement become applicable); and b. Remain applicable unless we notify you of changes in these provisions, in response to federal law. 3. If the provisions of this endorsement do NOT become applicable, any terrorism endorsement already endorsed to this policy that addresses "certified acts of terrorism" and/or "other acts of terrorism" will continue in effect unless we notify you of changes to that endorsement in response to federal law. © 2012 Liberty Mutual Insurance CU 89 31 01 07 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 2 B. The following definitions are added and apply under this endorsement wherever the term terrorism, or the phrase any injury or damage, are enclosed in quotation marks: "Terrorism" means activities against persons, organizations or property of any nature: 1. That involve the following or preparation for the following: a. Use or threat of force or violence; or b. Commission or threat of a dangerous act; or c. Commission or threat of an act that interferes with or disrupts an electronic, communication, information, or mechanical system; and 2. When one or both of the following applies: a. The effect is to intimidate or coerce a government or the civilian population or any segment thereof, or to disrupt any segment of the economy; or b. It appears that the intent is to intimidate or coerce a government, or to further political, ideo- logical, religious, social or economic objectives or to express (or express opposition to) a philosophy or ideology. "Any injury or damage" means any injury or damage covered under any Coverage Part to which this endorsement is applicable, and includes but is not limited to "bodily injury", "property damage", "personal injury" "advertising injury", or "personal and advertising injury" as may be defined in any applicable Coverage Part or "underlying insurance". C. The following exclusion is added: EXCLUSION OF TERRORISM We will not pay for "any injury or damage" caused directly or indirectly by "terrorism", including action in hindering or defending against an actual or expected incident of "terrorism". But this exclusion applies only when one or more of the following are attributed to an incident of "terrorism ": 1. The "terrorism" is carried out by means of the dispersal or application of radioactive material, or through the use of a nuclear weapon or device that involves or produces a nuclear reaction, nuclear radiation or radioactive contamination; or 2. Radioactive material is released, and it appears that one purpose of the "terrorism" was to release such material; or 3. The "terrorism" is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or 4. Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the "terrorism" was to release such materials. In the event of any incident of "terrorism" that is not subject to this Exclusion, coverage does not apply to "any injury or damage" that is otherwise excluded under this Coverage Part or Policy. All other terms and provisions remain the same. © 2012 Liberty Mutual Insurance CU 89 31 01 07 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 2 of 2 COMMERCIAL UMBRELLA CU 89 40 05 16 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CRISIS MANAGEMENT COVERAGE This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE FORM SCHEDULE Crisis Management Expense Aggregate Limit: $250,000 Liberty Mutual Preferred Public Relations Vendor: Weber Shandwick Liberty Mutual Claims: 1 (844) 325-2467 For purposes of coverage afforded by this endorsement only: A. The following is added to Section I. COVERAGE: CRISIS MANAGEMENT COVERAGE We will pay those sums necessary to reimburse you, or pay on your behalf, "crisis management expenses" arising from an "insured crisis event" to which this insurance applies. But: 1. This insurance applies only if: a. The "insured crisis event" commences during the policy period; b. The "insured crisis event" did not arise out of any fact, circumstance, pre-existing condition, or situation, that you, prior to the inception date of this policy, knew, or reasonably should have known, could lead to, cause or result in an "insured crisis event"; c. You notify us by telephone at the number listed for Liberty Mutual Claims as shown in the Schedule above within 7 days of the "insured crisis event"; d. The "crisis management expenses" are first incurred within 15 days after the "insured crisis event" commences; e. The "crisis management expenses" are not incurred more than 120 days after the commence- ment of the "insured crisis event'; and f. A claim for reimbursement of "crisis management expenses" is submitted within 120 days after incurring such "crisis management expenses." 2. We will have no duty under this Crisis Management Coverage to defend the "Insured" against any claim, suit or action seeking damages. 3. Payment of any "crisis management expenses" under the Crisis Management Coverage endorse- ment is in addition to, and will not reduce, any other Limits of Insurance under this policy, and will not be determinative of our obligations under this policy with respect to any claim or "suit", including any duty to defend or indemnify any "Insured" for such claim or "suit". 4. The amount we will pay is limited as described in Paragraph C. of the Crisis Management Coverage endorsement. 5. An "insured crisis event" will be deemed to commence at the time when any of your "key execu- tives" first become aware of the man-made emergency situation that resulted in the "insured crisis event." © 2016 Liberty Mutual Insurance. CU 89 40 05 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 4 B. The following exclusions are added to Section IV. EXCLUSIONS: This coverage does not apply to: 1. Newly Acquired or Formed Organizations "Crisis management expenses" incurred by any organization you newly acquire, control or form, if the "insured crisis event" which led to such "crisis management expenses" commenced before you acquired, controlled or formed such organization. 2. Infectious Diseases or Illnesses "Crisis management expenses" arising out of any infectious diseases or illnesses caused by any bacterium, virus, or fungus. However, this exclusion does not apply to "crisis management ex- penses" arising out of food -borne illnesses. 3. Intentional Acts by You Intentional acts by you or your employees, provided that such acts were performed with the knowl- edge that it would directly lead to an "insured crisis event." C. The following is added to Section II. LIMITS OF INSURANCE: The Crisis Management Expense Aggregate Limit shown in the Schedule of the Crisis Management Coverage endorsement is the most we will pay for the sum of all "crisis management expenses" to which this endorsement applies, regardless of the number of: 1. "Insureds"; 2. "Insured crisis events"; 3. Persons or organizations making claims. D. The following are added to Section V. DEFINITIONS: 1. "Insured crisis event" means an 'occurrence" resulting from a man-made emergency situation, including, but not limited to: a. Intentional acts, except those committed by you or your employees, such as arson, a bombing, taking of hostages, a mass shooting, or terrorism (if coverage under the Terrorism Risk Insur- ance Act is elected under the policy); b. A building, structure or equipment collapse; c. An automobile, watercraft or aircraft accident; d. Spread of food -borne illness; or e. An explosion; that a "key executive" reasonably believed in good faith has resulted, or may result, in: a. (1) Damages in excess of the "Retained Limit' because of "bodily injury" or "property dam- age" to which this insurance applies; or (2) Multiple deaths, burns, dismemberment injuries, traumatic brain injuries, permanent pa- ralysis injuries; and b. Significant adverse regional or national media coverage about you. 2. "Crisis management expenses": a. Means the following reasonable and necessary fees and expenses following an "insured crisis event': (1) Expenses incurred directly by our Liberty Mutual Preferred Public Relations Vendor shown in the Schedule for the purpose of maintaining and restoring public confidence in you. (2) Expenses incurred by the public relations vendor that was held on retainer by you at the time of the "insured crisis event' for providing public relations and media management services, but only for those expenses required for the purpose of maintaining and restoring public confidence in you related to the "insured crisis event." © 2016 Liberty Mutual Insurance. CU 89 40 05 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 2 of 4 (3) Expenses incurred directly by your operations for the purpose of maintaining and restoring public confidence in you. These expenses may include printing, advertising, or mailing of materials to manage reputational risk. (4) Costs of overtime paid to your regular non- salaried employees and costs incurred by your employees, including costs of transportation and accommodations, for the purpose of providing public relations and media services. (5) Expenses you advance to third parties directly harmed by the "insured crisis event" for the purpose of mitigating the harm. These expenses may include funeral, psychological or grief counseling, temporary living, and travel expenses. b. Does not include: (1) Any damages imposed upon any "Insured", including but not limited to any fine, sanction, penalty or punitive or exemplary damages, plus any equitable, injunctive or other non - monetary relief. (2) Any expenses you incur in the investigation, defense or settlement of a claim, suit or action for "bodily injury" or "property damage" or "personal injury," "advertising injury" or "personal and advertising injury" arising out of an "insured crisis event." (3) The base salary or wages of any of your employees. (4) Any ransom payment or other expense incurred to meet a demand made to redeem a hostage or captive. (5) Expenses incurred by any public relations or crisis management firm that is not listed as a Liberty Mutual Preferred Public Relations Vendor in the Schedule, or that was not held on retainer by you at the time of the "insured crisis event." (6) Any retainers or other contracted fees you paid a professional crisis management firm, public relations, media relations, or similar firm prior to an "insured crisis event." (7) Damages arising out of any employment -related practices, such as refusal to employ, termination, or any other practices, policies, acts or omissions, such as coercion, demo- tion, evaluation, reassignment, discipline, defamation, harassment, humiliation or dis- crimination directed at any person. 3. "Key executive" means: a. Chief Executive Officer; b. Chief Operating Officer; c. Chief Financial Officer; d. President; e. General Counsel or Chief Legal Officer; f. General Partner (if you are a partnership) or Sole Proprietor (if you are a proprietorship); g. Any person acting in the same capacity as any position listed in Paragraph a. through e. above; and h. Any risk manager responsible for insurance matters, or any other lawfully elected or appointed executive officer, official, director, trustee or commissioner that is responsible for insurance matters. 4. Definition D. of the policy does not apply to this endorsement. E. The following is added to Section VI. Conditions: Duties in the Event of an Insured Crisis Event 1. In the event you did not have a public relations or crisis management firm held on retainer at the time of the "insured crisis event" and would like to utilize a Liberty Mutual Preferred Public Rela- tions Vendor, you must notify both the Liberty Mutual Preferred Public Relations Vendor and Liberty Mutual Claims at the phone number listed in the Schedule within 7 days of an "insured crisis event." © 2016 Liberty Mutual Insurance. CU 89 40 05 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 3 of 4 Due to the emergent nature of claims under this coverage, there may be circumstances in which expenses are incurred by a Liberty Mutual Preferred Public Relations Vendor prior to our having the opportunity to determine whether those expenses will be covered under this policy. In those cir- cumstances, we will reimburse or pay expenses incurred for services from our Liberty Mutual Preferred Public Relations Vendor prior to our making a coverage determination. We reserve the right to decline expenses incurred after we have informed you that the claim is not covered. 2. In the event you choose to use the public relations or crisis management vendor that you held on retainer at the time of the "insured crisis event," or choose not to use any vendor, you must notify Liberty Mutual Claims at the phone number listed in the Schedule within 7 days of an "insured crisis event." 3. Additionally, you must provide us with written notice as soon as practicable. To the extent possible, such written notice should include: a. How, when and where the "insured crisis event" took place; b. The names and addresses of any affected parties and witnesses; and c. The nature and location of any injury or damage arising out of the "insured crisis event." This endorsement does not change any other provision of the policy. © 2016 Liberty Mutual Insurance. CU 89 40 05 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 4 of 4 COMMERCIAL UMBRELLA CU 89 44 08 17 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CONTRACTORS ERRORS AND OMISSIONS EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE FORM A. The following exclusion is added to Section IV. EXCLUSIONS: Any "claim" arising out of "contractor's errors or omissions." B. As used in this endorsement: "Claim" means a demand or "suit" which seeks money damages for: 1. "Property damage" to "your product"; 2. "Property damage" to "your work"; 3. "Property damage" to "impaired property"; or 4. Loss, cost or expense incurred by others for the loss of use, withdrawal, replacement, adjustment, removal or disposal of: a. "Your product"; b. "Your work'; or c. "Impaired property" recall, inspection, repair, if such product, work or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dan- gerous condition in it; caused by faulty workmanship, materials or design. "Contractor's error or omission" means an "Insured's" negligent act, error or omission while acting within the "Insured's" operation resulting in the failure of "your work" to perform the function or serve the purpose intended after completion. This endorsement does not change any other provisions of the policy © 2017 Liberty Mutual Insurance CU 89 44 08 17 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 1 COMMERCIAL UMBRELLA CU 89 45 10 14 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ACCESS OR DISCLOSURE OF CONFIDENTIAL OR PERSONAL INFORMATION AND DATA -RELATED LIABILITY -WITH LIMITED BODILY INJURY EXCEPTION EXCLUSION A. The following exclusion is added to Section IV - EXCLUSIONS: This insurance does not apply to: Any liability, damages, loss, injury, demand, "claim" or "suit" arising out of: 1. Any access to or disclosure of any person's or organization's confidential or personal information, including but not limited to patents, trade secrets, processing methods, customer lists, financial information, credit card information, health information or any other type of nonpublic information; or 2. The loss of, loss of use of, damage to, corruption of, inability to access, or inability to manipulate "electronic data". This exclusion applies even if damages are claimed for notification costs, credit monitoring expenses, forensic expenses, public relations expenses, fines, penalties (including but not limited to, fees or surcharges from affected financial institutions) or any other loss, cost or expense incurred by you or others arising out of that which is described in Paragraph 1 or 2 above. However, unless Paragraph 1 above applies, this exclusion does not apply to damages because of "bodily injury". B. The following definition is added to Section V - DEFINITIONS: "Electronic data" means information, facts or programs stored as or on, created or used on, or transmit- ted to or from computer software, including but not limited to systems and applications software, hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other media which are used with electronically controlled equipment. This endorsement does not change any other provisions of the policy. © 2014 Liberty Mutual Insurance. CU 89 45 10 14 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 1 COMMERCIAL UMBRELLA CU 90 52 10 17 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DAMAGE TO PROPERTY AMENDMENT This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE FORM Exclusion I. under Section IV. EXCLUSIONS is deleted and replaced with the following: I. "Property damage" to: 1. Property you own, rent or occupy including any costs or expenses incurred by you, or any other person, organization or entity for repair, replacement, enhancement, restoration or maintenance of such property for any reason, including prevention of injury to a person or damage to another's property; or 2. Premises you sell, give away, or abandon, if the "property damage" arises out of any part of those premises; 3. Property loaned to you; 4. Property in the care, custody or control of the insured; 5. That particular part of real property on which you or any contractors or subcontract ors working directly or indirectly on your behalf are performing operations, if the "property damage" arises out of those operations; or 6. That particular part of any property that must be restored, repaired, or replaced because "your work" was incorrectly performed on it. Paragraph 2. of this exclusion does not apply if the premises are "your work" and were never occupied, rented, or held for rental by you. Paragraphs 3., 4., 5. and 6. of this exclusion do not apply to liability assumed under a sidetrack agree- ment. Paragraphs 3. and 4. of this exclusion do not apply to liability assumed under a written Trailer Inter- change Agreement. Paragraph 6. of this exclusion does not apply to "property damage" included in the "products -com- pleted operations hazard." © 2017 Liberty Mutual Insurance CU 90 52 10 17 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 1 This page intentionally left blank. Liberty Mutual INSURANCE Coverage Is Provided In: The Ohio Casualty Insurance Company Policy Change Endorsement Policy Number: BMO (21) 55 1162 37 Policy Period: From 06/21/2020 To 06/21/2021 Endorsement Period: From 03/01/2021 to 06/21/2021 12:01 am Standard Time at Insured Mailing Location Named Insured & Mailing Address Agent Mailing Address & Phone No. CFC CONSTRUCTION LLC (360) 692-6131 20233 SE 192ND ST KURESMAN INSURANCE LLC RENTON, WA 98058 9321 BAYSHORE DR NW STE I I I SILVERDALE, WA 98383-8350 CHANGES TO POLICY - TRANSACTION # 3 This Policy Change Endorsement Results In A Change In The Charges As Follows: Additional Premium Total Additional Charges Certified Acts of Terrorism Additional Charges Description of Change(s) ADD INSTALLATION FLOATER PER FORMS ATTACHED See The Revised Declarations and Declarations Schedule Issue Date 04/05/21 To report a claim, call your Agent or 1-844-325-2467 $113.00 $113.00 $6.00 (Included) Note: This is not a bill Authorized Representative DS 70 27 01 08 04/05/21 55116237 N0113076 235 NCXFPPNO INSURED COPY 002551 PAGE 1 OF 26 Coverage Is Provided In: The Ohio Casualty Insurance Company Policy Change Endorsement Named Insured Agent CFC CONSTRUCTION LLC SUMMARY OF LOCATIONS 0001 20233 SE 192nd St, Renton, WA 98058-0271 POLICY FORMS AND ENDORSEMENTS Policy Number: BMO (21) 55 1162 37 Policy Period: From 06/21/2020 To 06/21/2021 Endorsement Period: From 03/01/2021 to 06/21/2021 12:01 am Standard Time at Insured Mailing Location (360) 692-6131 KURESMAN INSURANCE LLC This section lists the Forms and Endorsements for your policy. Refer to these documents as needed for detailed information concerning your coverage. FORM NUMBER TITLE CL 01 03 03 10 CL 06 00 01 15 CL 07 00 10 06 CL08110918 CL 16 50 08 06 *CM 70 02 01 01 CM76130713 CM 88 32 10 16 IM 20 97 04 04 IM 70 00 04 04 IM70340112 *IM 71 00 06 04 Issue Date 04/05/21 Common Policy Conditions - Washington Certified Terrorism Loss Virus or Bacteria Exclusion Cannabis Items and Activities Exclusion Conditional Nuclear, Biological, and Chemical Terrorism Exclusion Increased Storage & Transit Limits Waiver of Theft Deductible Contractors' Equipment Extension Amendatory Endorsement - Washington Contractors' Equipment Coverage Tools Endorsement Installation Floater Coverage To report a claim, call your Agent or 1-844-325-2467 Authorized Representative DS 70 27 01 08 04/05/21 55116237 N0113076 235 NCXFPPNO INSURED COPY 002551 PAGE 2 OF 26 Coverage Is Provided In: The Ohio Casualty Insurance Company Commercial Inland Marine Declarations -Revised Policy Number: BMO (21) 55 1162 37 Policy Period: From 06/21/2020 To 06/21/2021 12:01 am Standard Time at Insured Mailing Location Named Insured Agent CFC CONSTRUCTION LLC (360) 692-6131 KURESMAN INSURANCE LLC SUMMARY OF CHARGES Explanation of Charges DESCRIPTION PREMIUM Contractors Equipment with Small Tools 5313 . 00 Installation Floater Coverage S525. 00 Commercial Inland Marine Schedule Totals S838.00 Certified Acts of Terrorism Coverage S32.00 Total Advance Charges: $870.00 Note: This is not a bill To report a claim, call your Agent or 1-844-325-2467 DS 70 22 01 08 04/05/21 55116237 N0113076 235 NCXFPPNO INSURED COPY 002551 PAGE 3 OF 26 AATS IM 7005 01 12 PAGE 1 OF 2 BMO (21) 55 11 62 37 SCHEDULE OF COVERAGES CONTRACTORS' EQUIPMENT (The entries required to complete this schedule will be shown below or on the "schedule of coverages".) PROPERTY COVERED (check one) [ X ] Scheduled Equipment (Refer to Equipment Schedule) [ ] Schedule On File "LIMIT" Catastrophe Limit -- The most "we" pay for loss in any one occurrence is: $ 10,000 COVERAGE EXTENSIONS Additional Debris Removal Expenses $ 5,000 SUPPLEMENTAL COVERAGES Employee Tools $ 5,000 Equipment Leased or Rented From Others $ 25,000 Newly Purchased Equipment (check one) [X] Percentage of Catastrophe Limit 30 % [ ] Dollar Limit $ Pollutant Cleanup and Removal $ 25,000 o Rental Reimbursement - Reimbursement Limit $ 5,000 - Waiting Period 72 Hours Spare Parts and Fuel $ 5,000 Copyright, American Association of Insurance Services, Inc., 2012 04/05/21 55116237 N0113076 235 NCXFPPNO INSURED COPY 002551 PAGE 4 OF 26 AAIS IM 7005 01 12 PAGE 2 OF 2 COINSURANCE (check one) [ ] 80% [ ] 90% [X] 100% [ ] OTHER % REPORTING CONDITIONS (check if applicable) [ ] Equipment Leased or Rented From Others -- Reporting Rate $ -- Deposit Premium $ -- Minimum Premium $ VALUATION (check if applicable) [ ] Actual Cash Value [ ] Replacement Cost [ X ] Indicated on Equipment Schedule DEDUCTIBLE (check one) [ X ] Flat Deductible Amount $ 1,000 [ ] Percentage Deductible % Maximum Deductible Amount $ Minimum Deductible Amount $ ADDITIONAL INFORMATION IM 7005 01 12 Copyright, American Association of Insurance Services, Inc., 2012 04/05/21 55116237 N0113076 235 NCXFPPNO INSURED COPY 002551 PAGE 5 OF 26 AAIS IM 7031 01 12 BMO (21) 55 11 62 37 EQUIPMENT SCHEDULE CONTRACTORS' EQUIPMENT VALUATION BASIS (The entries required to complete this schedule will be shown below or on the "schedule of coverages".) SCHEDULED EQUIPMENT AA = Agreed Amount ACV = Actual Cash Value Item No. Valuation Description of Equipment RP = Replacement Cost "Limit" 1 ACV Tools -Owners with $2,500 per Item Max(See IM 7034) $ 10,000 IM 7031 01 12 Copyright, American Association of Insurance Services, Inc., 2012 04/05/21 55116237 N0113076 235 NCXFPPNO INSURED COPY 002551 PAGE 6 OF 26 Liberty Mutual INSURANCE Coverage Is Provided In: The Ohio Casualty Insurance Company Policy Number: 131111110 (21) 55 1162 37 Policy Period: From 06/21/2020 To 06/21/2021 12:01 am Standard Time Commercial Inland Marine I at Insured Mailing Location Declarations Schedule -Revised Named Insured Agent CFC CONSTRUCTION LLC (360) 692-6131 KURESMAN INSURANCE LLC - INSTALLATION FLOATER COVERAGE PROPERTY COVERED (X) Blanket Coverage Limit Jobsite Limit -- The most "we" pay for loss to any one "jobsite" is: $ 250,000 Catastrophe Limit -- The most "we" pay for loss to any one occurrence is: $ 250,000 () Scheduled Locations Coverage Loc. No. Location Limit Catastrophe Limit -- The most "we" pay for loss to any one occurrence is: $ COVERAGE EXTENSIONS Additional Debris Removal Expenses $ 5,000 Emergency Removal 10 days Limited Fungus Coverage $ 15,000 SUPPLEMENTAL COVERAGES Contract Penalty $ 5,000 Pollutant Cleanup and Removal $ 10,000 Sewer Backup Coverage $ 5,000 Storage Locations $ 5,000 Testing $ 5,000 Transit $ 5,000 To report a claim, call your Agent or 1-844-325-2467 IM 71 05 04 04 04/05/21 55116237 N0113076 235 NCXFPPNO INSURED COPY 002551 PAGE 7 OF 26 Liberty Mutual INSURANCE Policy Number: BMO (21) 55 1162 37 Policy Period: From 06/21/2020 To 06/21/2021 12:01 am Standard Time Commercial Inland Marine I at Insured Mailing Location Coverage Is Provided In: The Ohio Casualty Insurance Company Declarations Schedule -Revised Named Insured Agent CFC CONSTRUCTION LLC (360) 692-6131 KURESMAN INSURANCE LLC SUPPLEMENTAL COVERAGES (cont) Earthquake Coverage Earthquake Limit -- The most "we" pay for loss to any one building or structure is: Earthquake Catastrophe Limit -- The most "we" pay for loss in any one occurrence is Flood Coverage Flood Limit -- The most "we" pay for loss to any one building or structure is: Flood Catastrophe Limit -- The most "we" pay for loss in any one occurrence is DEDUCTIBLE Deductible Amount () Earthquake Coverage () Flood Coverage () Sewer Backup Coverage COINSURANCE () Not Applicable () 80% () 90% (X) 100% () Other To report a claim, call your Agent or 1-844-325-2467 IM 71 05 04 04 04/05/21 55116237 N0113076 235 $ 500 Deductible Amount NCXFPPNO INSURED COPY 002551 PAGE 8 OF 26 General Endorsement This Endorsement Changes The Policy. Please Read It Carefully Increased Storage & Transit Limits This endorsement changes the Installation Floater Coverage provided under the following: Schedule of Coverage Installation Floater Coverage, IM7105 ( X ) Blanket Coverage Jobsite Limit - the most we pay for any loss to any one "jobsite" is $ Catastrophe Limit - The most we pay for any loss in any one occurrence is $ ( ) Scheduled Locations Coverage Location - Limit - $ Catastrophe Limit - The most we pay for any loss in any one occurrence is $ Supplemental Coverages Storage locations $_25,000 Transit $ 25,000 Deductible Deductible Amount $ 500 To report a claim, call your Agent or 1-844-325-2467 Policy Number: BMO (21) 55 1162 37 Policy Period: From 06/21/2020 To 06/21/2021 12:01 am Standard Time at Insured Mailing Location CM 70 02 01 01 Page 01 of 01 This page intentionally left blank. AAIS IM 7100 06 04 Pane 1 of 15 INSTALLATION FLOATER COVERAGE AGREEMENT In return for "your" payment of the required pre- mium, "we" provide the coverage described here- in subject to all the "terms" of the Installation Floater Coverage. This coverage is also subject to the "schedule of coverages" and additional policy conditions relating to assignment or transfer of rights or duties, cancellation, changes or modifi- cations, inspections, and examination of books and records. Endorsements and schedules may also apply. They are identified on the "schedule of cover- ages". Refer to Definitions for words and phrases that have special meaning. These words and phrases are shown in quotation marks or bold type. DEFINITIONS 1. The words "you" and "your" mean the per- sons or organizations named as the insured on the declarations. 2. The words "we", "us", and "our" mean the company providing this coverage. 3. "Earth movement" means any movement or vibration of the earth's surface (other than "sinkhole collapse") including but not limited to earthquake; landslide; mudflow; mudslide; mine subsidence; or sinking, rising, or shift- ing, of earth. 4. "Flood" means flood, surface water, waves, tidal water, or the overflow of a body of wa- ter, all whether driven by wind or not. This includes spray that results from these wheth- er driven by wind or not. IM 7100 06 04 5. "Fungus" means: a. a fungus, including but not limited to mil- dew and mold; b. a protist, including but not limited to al- gae and slime mold; c. wet rot and dry rot; d. a bacterium; or e. a chemical, matter, or compound produced or released by a fungus, a protist, wet rot, dry rot, or a bacterium, including but not limited to toxins, spores, fragments, and metabolites such as microbial volatile organic compounds. 6. "Jobsite" means any location, project, or work site where "you" are involved in an in- stallation or construction project. 7. "Limit" means the amount of coverage that applies. 8. "Pollutant" means: a. any solid, liquid, gaseous, thermal, or ra- dioactive irritant or contaminant, includ- ing acids, alkalis, chemicals, fumes, smoke, soot, vapor, and waste. Waste in- cludes materials to be recycled, re- claimed, or reconditioned, as well as disposed of; and b. electrical or magnetic emissions, whether visible or invisible, and sound emissions. 9. "Schedule of coverages" means: a. all pages labeled schedule of coverages or schedules that pertain to this cover- age; and b. declarations or supplemental declara- tions that pertain to this coverage. Copyright, American Association of Insurance Services, Inc., 2004 AAIS IM 7100 06 04 Pane 2 of 15 10. "Sinkhole collapse" means the sudden settle- ment or collapse of earth supporting the covered property into subterranean voids cre- ated by the action of water on a limestone or similar rock formation. It does not include the value of the land or the cost of filling sinkholes. 11. "Specified perils" means aircraft; civil com- motion; explosion; falling objects; fire; hail; leakage from fire extinguishing equipment; lightning; riot; "sinkhole collapse"; smoke; sonic boom; vandalism; vehicles; "volcanic action"; water damage; weight of ice, snow, or sleet; and windstorm. Falling objects does not include loss to: a. personal property in the open; or 1. Coverage -- "We" cover direct physical loss caused by a covered peril to materials, sup- plies, machinery, fixtures, and equipment that "you" are installing, constructing, or rigging as part of "your" installation or construction project. 2 b. the interior of buildings or structures or to personal property inside buildings or structures unless the exterior of the roofs or walls are first damaged by a falling ob- 3 ject. Water damage means the sudden or acciden- tal discharge or leakage of water or steam as a direct result of breaking or cracking of a part of the system or appliance containing the wa- ter or steam. 12. "Terms" means all provisions, limitations, exclusions, conditions, and definitions that apply. 13. "Volcanic action" means airborne volcanic blast or airborne shock waves; ash, dust, or particulate matter; or lava flow. Volcanic action does not include the cost to remove ash, dust, or particulate matter that does not cause direct physical loss to the cov- ered property. PROPERTY COVERED "We" cover the following property unless the property is excluded or subject to limitations. Coverage Limitations -- "We" only cover: a. materials, supplies, machinery, fixtures, and equipment that will become a perma- nent part of "your" completed instal- lation or construction project; and b. an installation or construction project at "your" 'jobsite". However, if Scheduled Locations Cover- age is indicated on the "schedule of cov- erages", "we" only cover an installation or construction project at a 'jobsite" that is described on the "schedule of cover- ages". Materials, Supplies, Machinery, Fixtures, And Equipment Means -- Materials, supplies, machinery, fixtures, and equipment means: a. "your" materials, supplies, machinery, fixtures, and equipment; and b. similar property of others that is in "your" care, custody, or control. 1. Airborne Property -- "We" do not cover prop- erty while airborne except while in transit on a regularly scheduled airline flight. 2. Buildings, Structures, And Land -- "We" do not cover buildings, structures, or land. However, "we" do cover property that is part of "your" installation or construction project and is in connection with any building or structure. IM 7100 06 04 Copyright, American Association of Insurance Services, Inc., 2004 AAIS IM 7100 06 04 Pane 3 of 15 3. Contraband -- "We" do not cover contraband The "limit" provided under a Coverage Extension or property in the course of illegal transporta- cannot be combined or added to the "limit" for tion or trade. any other Coverage Extension or Supplemental 4. Machinery, Tools, Equipment -- "We" do not Coverage including a Coverage Extension or Sup - cover machinery, tools, equipment, or similar plemental Coverage that is added to this policy by property that will not become a permanent endorsement. part of "your" installation or construction If coinsurance provisions are part of this policy, project. the following coverage extensions are not subject 5. Money And Securities -- "We" do not cover to and not considered in applying coinsurance accounts, bills, currency, food stamps, or oth- conditions. er evidences of debt, lottery tickets not held 1. Debris Removal -- for sale, money, notes, or securities. a. Coverage -- "We" pay the cost to remove 6. Trees, Shrubs, Or Plants -- "We" do not cover the debris of covered property that is trees, shrubs, plants, or lawns. caused by a covered peril. 7. Waterborne Property -- "We" do not cover b. We Do Not Cover -- This coverage does property while waterborne except while in not include costs to: transit in the custody of a carrier for hire. 1) extract "pollutants" from land or wa- ter; or COVERAGE EXTENSIONS 2) remove, restore, or replace polluted land or water. c. Limit -- "We" do not pay any more under Provisions That Apply To Coverage Extensions -- this coverage than 25% of the amount The following Coverage Extensions indicate an "we" pay for the direct physical loss. applicable 'limit". This 'limit" may also be "We" will not pay more for loss to prop - shown on the "schedule of coverages". erty and debris removal combined than If a different "limit' is indicated on the "schedule the 'limit" for the damaged property. of coverages", that 'limit' will apply instead of d. Additional Limit -- "We" pay up to an ad - the 'limit' shown below. ditional $5,000 for debris removal ex - However, if no 'limit' is indicated for a Coverage pense when the debris removal expense Extension, coverage is provided up to the full exceeds 25% of the amount "we" pay for "limit" for the applicable covered property unless direct physical loss or when the loss to a different "limit' is indicated on the "schedule of property and debris removal combined coverages". exceeds the 'limit' for the damaged Unless otherwise indicated, the coverages pro- property. vided below are part of and not in addition to the e. You Must Report Your Expenses -- "We" applicable 'limit' for coverage described under do not pay any expenses unless they are Property Covered. reported to "us" in writing within 180 days from the date of direct physical loss to covered property. IM 7100 06 04 Copyright, American Association of Insurance Services, Inc., 2004 AAIS IM 7100 06 04 Pane 4 of 15 2. Emergency Removal -- The Limited Fungus Limit is the most that a. Coverage -- "We" cover any direct phys- "we" pay for the total of all loss or dam- ical loss to covered property while it is age arising out of all occurrences of being moved or being stored to prevent a "specified perils", other than fire or light - loss caused by a covered peril. ning, or "flood" (if applicable) during each separate 12-month period beginning b. Time Limitation -- This coverage applies with the inception date of this policy. for up to ten days after the property is first moved. Also, this coverage does not d. If The Policy Period Is Extended -- If the extend past the date on which this policy policy period is extended for an addition - expires. al period of less than 12 months, this ad- ditional period will be considered part of 3. Limited Fungus Coverage -- the preceding period for the purpose of a. Coverage -- "We" pay for direct physical determining the Limited Fungus Limit. loss to covered property caused by or re- e. Recurrence And Continuation Of Fungus lating to the existence of or any activity of -- Limited Fungus Limit is the most that "fungus". "we" pay with respect to a specific occur- b. Coverage Limitation -- "We" only cover rence of a loss which results in "fungus" loss caused by "fungus": even if such "fungus" recurs or continues 1) when the "fungus" is the result of: to exist during this or any future policy period. a) a "specified peril" other than fire or lightning; or f. Limit Applies To Other Costs Or Ex- penses -- Limited Fungus Limit also ap- plies to any cost or expense to: provided under this policy); 1) clean up, contain, treat, detoxify, or that occurs during the policy period; neutralize "fungus" on covered prop - and erty or remove "fungus" from cov- 2) if all reasonable steps were taken to ered property; protect the property from additional 2) remove and replace those parts of damage at and after the time of the covered property necessary to gain occurrence. access to "fungus"; and c. Limit -- The most "we" pay for all losses 3) test for the existence or level of "fun - at all installation or construction projects gus" following the repair, replace - is $15,000, unless another "limit" is in- ment, restoration, or removal of dicated on the "schedule of coverages". damaged property if it is reasonable The Limited Fungus Limit applies regard- to believe that "fungus" is present. less of the number of claims made. o g. Loss Not Caused By Fungus -- If there is a The Limited Fungus Limit applies regard- covered loss or damage to covered prop - less of the number of locations, buildings erty not caused by "fungus", loss pay - or projects insured under ment will not be limited by the "terms" of tor hstructures, this policy. this coverage extension. However, to the extent that "fungus" causes an increase in the loss, that increase is subject to the "terms" of this coverage extension. IM 7100 06 04 Copyright, American Association of Insurance Services, Inc., 2004 AAIS IM 7100 06 04 Page 5 of 15 SUPPLEMENTAL COVERAGES Provisions That Apply To Supplemental Cover- ages -- The following Supplemental Coverages in- dicate an applicable 'limit". This 'limit' may also be shown on the "schedule of coverages". If a different "limit' is indicated on the "schedule of coverages", that 'limit' will apply instead of the 'limit' shown below. However, if no 'limit' is indicated for a Supple- mental Coverage, coverage is provided up to the full "limit' for the applicable covered property un- less a different "limit' is indicated on the "sched- ule of coverages". Unless otherwise indicated, a 'limit' for a Sup- plemental Coverage provided below is separate from, and not part of, the applicable "limit' for coverage described under Property Covered. The 'limit' available for coverage described un- der a Supplemental Coverage: a. is the only 'limit' available for the described coverage; and b. is not the sum of the 'limit' indicated for a Supplemental Coverage and the "limit' for coverage described under Property Covered. The "limit' provided under a Supplemental Cov- erage cannot be combined or added to the 'limit' for any other Supplemental Coverage or Coverage Extension including a Supplemental Coverage or Coverage Extension that is added to this policy by endorsement. If coinsurance provisions are part of this policy, the following supplemental coverages are not subject to and not considered in applying coinsur- ance conditions. 1. Contract Penalty -- a. Coverage -- "We" pay for the cost of contractual penalties for non -completion that "you" are assessed or are required to pay because "you" are unable to com- plete work on a covered installation or construction project in accordance with the terms or conditions of the installation or construction contract. b. Coverage Limitation -- "Your" inability to complete "your" installation or construc- tion project on time must be as a direct result of a loss by a covered peril to a covered installation or construction project. c. Limit -- The most "we" pay in any one occurrence for all contractual penalties is $5,000. 2. Earthquake Coverage -- If coverage is indicat- ed on the "schedule of coverages", "we" cov- er direct physical loss caused by earthquake and volcanic eruption to covered property. 3. Flood Coverage -- If coverage is indicated on the "schedule of coverages", "we" cover di- rect physical loss caused by "flood" to cov- ered property. 4. Pollutant Cleanup And Removal -- a. Coverage -- "We" pay "your" expense to extract "pollutants" from land or water if the discharge, dispersal, seepage, migra- tion, release, or escape of the "pollu- tants" is caused by a covered peril that occurs during the policy period. b. Time Limitation -- The expenses to ex- tract "pollutants" are paid only if they are reported to "us" in writing within 180 days from the date the covered peril oc- curs. c. We Do Not Cover -- "We" do not pay the cost of testing, evaluating, observing, or recording the existence, level, or effects of "pollutants". IM 7100 06 04 Copyright, American Association of Insurance Services, Inc., 2004 AAIS IM 7100 06 04 Pane 6 of 15 However, "we" pay the cost of testing Testing includes start-up, performance, which is necessary for the extraction of stress, pressure, or overload testing of "pollutants" from land or water. materials, supplies, machinery, fixtures, d. Limit -- The most "we" pay for each loca- and equipment that will become a perma- tion is $10,000 for the sum of all such ex- nent part of a covered installation or con- penses arising out of a covered peril oc- struction project. curring during each separate 12-month b. Limit -- The most "we" pay in any one period of this policy. occurrence for loss resulting from testing 5. Sewer Backup Coverage -- is $5,000. a. Coverage -- "We" cover direct physical 8 Transit -- loss to a covered installation or construc- a. Coverage -- "We" cover direct physical tion project caused by: loss caused by a covered peril to materi- 1) water that backs up through a sewer als, supplies, machinery, fixtures, and or drain; or equipment that will become a permanent part of "your" installation or construction 2) water below the surface of the project while they are in transit. ground including water that exerts pressure on or flows, seeps, or leaks b. Limit -- The most "we" pay in any one through or into a covered building or occurrence for loss to property in transit structure. is $5,000. b. Limit -- The most "we" pay in any one occurrence for loss caused by sewer PERILS COVERED " backup and water below the surface is $5,000. 6. Storage Locations -- "We" cover risks of direct physical loss unless the a. Coverage -- "We" cover direct physical loss is limited or caused by a peril that is ex - loss caused by a covered peril to materi- cluded. als, supplies, machinery, fixtures, and equipment that will become a permanent PERILS EXCLUDED part of "your" installation or construction project while they are at a storage loca- tion that is not described on the "sched- 1. "We" do not pay for loss or damage caused ule of coverages". directly or indirectly by one or more of the b. Limit -- The most "we" pay in any one following excluded causes or events. Such occurrence for loss to property at a stor- loss or damage is excluded regardless of oth- " age location is $5,000. er causes or events that contribute to or ag- 7. Testing -- gravate the loss, whether such causes or events act to produce the loss before, at the a. Coverage -- "We" cover direct physical same time as, or after the excluded causes or loss to covered property caused by a cov- events. ered peril that results from testing. IM 7100 06 04 Copyright, American Association of Insurance Services, Inc., 2004 AAIS IM 7100 06 04 Pane 7 of 15 a. Civil Authority -- "We" do not pay for loss caused by order of any civil authority, in- cluding seizure, confiscation, destruction, or quarantine of property. "We" do cover loss resulting from acts of destruction by the civil authority to pre- vent the spread of fire, unless the fire is caused by a peril excluded under this cov- erage. b. Earth Movement Or Volcanic Eruption -- Except as provided under Supplemental Coverages - Earthquake Coverage, "we" do not pay for loss caused by any "earth movement" (other than "sinkhole col- lapse") or caused by eruption, explosion, or effusion of a volcano. "We" do cover direct loss by fire, explo- sion, or "volcanic action" resulting from either "earth movement" or eruption, ex- plosion, or effusion of a volcano. This exclusion does not apply to covered property while in transit. c. Flood -- Except as provided under Sup- plemental Coverages - Flood Coverage, "we" do not pay for loss caused by "flood". "We" do cover direct loss by fire, explo- sion, or sprinkler leakage resulting from "flood". This exclusion does not apply to covered property while in transit. d. Fungus -- Except as provided under Cov- erage Extensions - Limited Fungus Cov- erage, "we" do not pay for loss, cost, or expense caused by or relating to the exis- tence of or any activity of "fungus". But if "fungus" results in a "specified per- il', we cover loss or damage caused by that "specified peril". This exclusion does not apply to: 1) loss that results from fire or light- ning; or 2) collapse caused by hidden decay. e. Nuclear Hazard -- "We" do not pay for loss caused by or resulting from a nuclear reaction, nuclear radiation, or radioactive contamination (whether controlled or uncontrolled; whether caused by natural, accidental, or artificial means). Loss caused by nuclear hazard is not consid- ered loss caused by fire, explosion, or smoke. Direct loss by fire resulting from the nuclear hazard is covered. f. Ordinance Or Law -- "We" do not pay for loss or increased cost caused by enforce- ment of any code, ordinance, or law regu- lating the use, construction, or repair of any building or structure; or requiring the demolition of any building or structure in- cluding the cost of removing its debris. "We" do not pay for loss regardless if the loss is caused by or results from the: 1) enforcement of any code, ordinance, or law even if a building or structure has not been damaged; or 2) increased costs that "you" incur be- cause of "your" compliance with a code, ordinance, or law during the construction, repair, rehabilitation, remodeling, or razing of a building or structure, including the removal of debris, following a direct physical loss to the property. g. Penalties -- Except as provided under Supplemental Coverages - Contract Pen- alty, "we" do not pay for loss caused by penalties for non -completion or non-com- pliance with any contract terms or condi- tions. IM 7100 06 04 Copyright, American Association of Insurance Services, Inc., 2004 AAIS IM 7100 06 04 Pane 8 of 15 h. Sewer Backup And Water Below The 2. "We" do not pay for loss or damage that is Surface -- Except as provided under Sup- caused by or results from one or more of the plemental Coverages - Sewer Backup following: Coverage, "we" do not pay for loss a. Contamination Or Deterioration -- "We" caused by: do not pay for loss caused by contamina- 1) water that backs up through a sewer tion or deterioration including corrosion, or drain; or decay, rust, or any quality, fault, or weak- 2) water below the surface of the ness in covered property that causes it to ground, including but not limited to damage or destroy itself. water that exerts pressure on or But if contamination or deterioration re - flows, seeps, or leaks through or into suits in a covered peril, "we" do cover the a covered building or structure. loss or damage caused by that covered "We" do cover direct loss by fire, explo- peril. sion, or theft resulting from either water b. Criminal, Fraudulent, Dishonest Or Illegal that backs up through a sewer or drain or Acts -- "We" do not pay for loss caused o water below the surface of the ground. by or resulting from criminal, fraudulent, This exclusion does not apply to covered dishonest, or illegal acts committed alone property while in transit. or in collusion with another by: i. War And Military Action -- "We" do not 1) "you"; pay for loss caused by: 2) others who have an interest in the 1) war, including undeclared war or civ- property; it war; or 3) others to whom "you" entrust the 2) a warlike action by a military force, property; including action taken to prevent or 4) "your" partners, officers, directors, defend against an actual or expected trustees, joint venturers, or "your" attack, by any government, sover- members or managers if "you" are a eign, or other authority using military limited liability company; or personnel or other agents; or 5) the employees or agents of 1), 2), 3) insurrection, rebellion, revolution, or 3),or 4) above, whether or not they unlawful seizure of power including are at work. action taken by governmental author- This exclusion does not apply to acts of ity to prevent or defend against any destruction by "your" employees, but of these. "we" do not pay for theft by employees. With regard to any action that comes This exclusion does not apply to covered o within the "terms" of this exclusion and property in the custody of a carrier for involves nuclear reaction, nuclear radi- hire. ation, or radioactive contamination, this War and Military Action Exclusion will ap- ply in place of the Nuclear Hazard Exclu- sion. IM 7100 06 04 Copyright, American Association of Insurance Services, Inc., 2004 AAIS IM 7100 06 04 Pane 9 of 15 c. Defects, Errors, And Omissions -- "We" do not pay for loss caused by: 1) an act, defect, error, or omission (negligent or not) relating to: a) design or specifications; b) workmanship or construction; or c) repair, renovation, or remodel- ing; or 2) a defect, weakness, inadequacy, fault, or unsoundness in materials. But if a defect, error, or omission as de- scribed above results in a covered peril, "we" do cover the loss or damage caused by that covered peril. d. Electrical Currents -- "We" do not pay for loss caused by arcing or by electrical cur- rents other than lightning. But if arcing or electrical currents other than lightning result in a covered peril, "we" do cover the loss or damage caused by that covered peril. However, this exclusion does not apply to loss resulting from testing as specifically provided under Supplemental Coverages - Testing. e. Explosion, Rupture, Or Bursting -- "We" do not pay for loss caused by explosion, rupture, or bursting of steam boilers, steam or gas turbines, steam pipes, or steam engines. This exclusion applies only to loss or damage to the steam boilers, steam or gas turbines, steam pipes, or steam en- gines in which the loss occurred. f. Loss Of Use -- "We" do not pay for loss caused by or resulting from loss of use, delay, or loss of market. g. Mechanical Breakdown -- "We" do not pay for loss caused by mechanical break- down or rupturing or bursting of moving parts of machinery caused by centrifugal force. But if a mechanical breakdown or ruptur- ing or bursting of moving parts of ma- chinery caused by centrifugal force re- sults in a covered peril, "we" do cover the loss or damage caused by that covered peril. However, this exclusion does not apply to loss resulting from testing as specifically provided under Supplemental Coverages - Testing. h. Missing Property -- "We" do not pay for missing property where the only proof of loss is unexplained or mysterious disap- pearance of covered property, or short- age of property discovered on taking in- ventory, or any other instance where there is no physical evidence to show what happened to the covered property. This exclusion does not apply to covered property in the custody of a carrier for hire. i. Pollutants -- "We" do not pay for loss caused by or resulting from release, dis- charge, seepage, migration, dispersal, or escape of "pollutants": 1) unless the release, discharge, seep- age, migration, dispersal, or escape is caused by a "specified peril"; or 2) except as specifically provided under the Supplemental Coverages - Pollu- tant Cleanup and Removal. "We" do cover any resulting loss caused by a "specified peril". j. Temperature/Humidity -- "We" do not pay for loss caused by dryness, damp- ness, humidity, or changes in or extremes of temperature. But if dryness, dampness, humidity, or changes in or extremes of temperature results in a covered peril, "we" do cover the loss or damage caused by that cov- ered peril. IM 7100 06 04 Copyright, American Association of Insurance Services, Inc., 2004 AAIS IM 7100 06 04 Page 10 of 15 k. Voluntary Parting -- "We" do not pay for 3 loss caused by or resulting from voluntary parting with title to or posses- sion of any property because of any fraudulent scheme, trick, or false pre- tense. I. Wear And Tear -- "We" do not pay for loss caused by wear and tear, marring, or scratching. But if wear and tear, marring, or scratch- ing results in a covered peril, "we" do cover the loss or damage caused by that covered peril. WHAT MUST BE DONE IN CASE OF LOSS Proof Of Loss -- "You" must send "us", within 60 days after 'bur" request, a signed, sworn proof of loss. This must include the following information: a. the time, place, and circumstances of the loss; b. other policies of insurance that may cover the loss; c. "your" interest and the interests of all others in the property involved, including all mortgages and liens; d. changes in title of the covered property during the policy period; and e. estimates, specifications, inventories, and other reasonable information that "we" may require to settle the loss. 4. Examination -- "You" must submit to exami- nation under oath in matters connected with 1. Notice -- In case of a loss, "you" must: the loss as often as "we" reasonably request a. give "us" or 'bur" agent prompt notice and give "us" sworn statements of the an - including a description of the property in- swers. If more than one person is examined, volved ("we" may request written no- "we" have the right to examine and receive tice); and statements separately and not in the presence b. give notice to the police when the act that of others. causes the loss is a crime. 5. Records -- "You" must produce records, in- 2. You Must Protect Property -- "You" must cluding tax returns and bank microfilms of all take all reasonable steps to protect covered canceled checks relating to value, loss, and property at and after an insured loss to avoid expense and permit copies and extracts to be further loss. made of them as often as "we" reasonably request. a. Payment Of Reasonable Costs -- "We" do pay the reasonable costs incurred by 6. Damaged Property -- "You" must exhibit the "you" for necessary repairs or emergen- damaged and undamaged property as often cy measures performed solely to protect as "we" reasonably request and allow "us" to covered property from further damage by inspect or take samples of the property. a peril insured against if a peril insured 7. Volunteer Payments -- "You" must not, ex - against has already caused a loss to cov- cept at "your" own expense, voluntarily make ered property. "You" must keep an accu- any payments, assume any obligations, pay rate record of such costs. "Our" payment or offer any rewards, or incur any other ex - of reasonable costs does not increase the penses except as respects protecting property "limit". from further damage. b. We Do Not Pay -- "We" do not pay for 8. Abandonment -- "You" may not abandon the such repairs or emergency measures per- property to "us" without 'bur" written con- formed on property which has not been sent. damaged by a peril insured against. IM 7100 06 04 Copyright, American Association of Insurance Services, Inc., 2004 AAIS IM 7100 06 04 Page 11 of 15 9. Cooperation -- "You" must cooperate with "us" in performing all acts required by this policy. VALUATION 1. Actual Cost To Repair, Replace, Or Rebuild -- a. The Value Will Be Based On -- The value of covered property will be based on the lesser of the following amounts: 1) The actual cost to repair, replace, or rebuild the covered property with materials of like kind and quality. The actual cost may include material, la- bor, reasonable overhead and profit, and delivery charges. 2) The amount "you" actually spend to repair, replace, or rebuild the covered property. b. Payment Limitation -- In no event will "we" pay more than the 'limit" indicated on the "schedule of coverages". 2. Pair Or Set -- The value of a lost or damaged article that is part of a pair or set is based on a reasonable proportion of the value of the en- tire pair or set. The loss is not considered a total loss of the pair or set. 3. Loss To Parts -- The value of a lost or damaged part of an item that consists of sev- eral parts when it is complete is based on the value of only the lost or damaged part or the cost to repair or replace it. IM 7100 06 04 HOW MUCH WE PAY 1. Insurable Interest -- "We" do not pay for more than "your" insurable interest in any property. 2. Deductible -- "We" pay only that part of "your" loss over the deductible amount indi- cated on the "schedule of coverages" in any one occurrence. 3. Earthquake Period -- All earthquakes or vol- canic eruptions that occur within a 168-hour period will be considered a single loss. This 168-hour period is not limited by the policy expiration. 4. Loss Settlement Terms -- Subject to para- graphs 1., 2., 3., 5., 6., and 7. under How Much We Pay, "we" pay the lesser of: a. the amount determined under Valuation; b. the cost to repair, replace, or rebuild the property with material of like kind and quality to the extent practicable; or c. the "limit" that applies to the covered property. 5. Coinsurance -- a. When Coinsurance Applies -- "We" only pay a part of the loss if the 'limit" is less than the percentage of the value of the covered property that is indicated on the "schedule of coverages". b. How We Determine Our Part Of The Loss -- "Our" part of the loss is determined using the following steps: 1) multiply the percent indicated on the "schedule of coverages" by the value of the covered property at the time of loss; Copyright, American Association of Insurance Services, Inc., 2004 AAIS IM 7100 06 04 Page 12 of 15 2) divide the 'limit" for covered prop- erty by the result determined in b.1) above; 3) multiply the total amount of loss, after the application of any deduct- ible, by the result determined in b.2) above. The most "we" pay is the amount deter- mined in b.3) above or the 'limit", which- ever is less. "We" do not pay any remain- ing part of the loss. b. Excess Amount -- If there is another poli- cy covering the same loss, other than that described above, "we" pay only for the amount of covered loss in excess of the amount due from that other policy, whether "you" can collect on it or not. But "we" do not pay more than the ap- plicable "limit". LOSS PAYMENT c. If There Is More Than One Limit -- If there is more than one "limit' indicated on the 1 "schedule of coverages" for this cover- age part, this procedure applies separate- ly to each 'limit'. d. If There Is Only One Limit -- If there is only one "limit' indicated on the "sched- ule of coverages" for this coverage, this procedure applies to the total of all cov- ered property to which the 'limit' ap- plies. e. When Coinsurance Does Not Apply -- Conditions for coinsurance do not apply unless a coinsurance percentage is indi- cated on the "schedule of coverages". 6. Insurance Under More Than One Coverage -- If more than one coverage of this policy in- sures the same loss, "we" pay no more than the actual claim, loss, or damage sustained. 7. Insurance Under More Than One Policy -- a. Proportional Share -- "You" may have another policy subject to the same "terms" as this policy. If "you" do, "we" will pay 'bur" share of the covered loss. "Our" share is the proportion that the ap- plicable 'limit' under this policy bears to the 'limit' of all policies covering on the same basis. Loss Payment Options -- a. Our Options -- In the event of loss cov- ered by this coverage form, "we" have the following options: 1) pay the value of the lost or damaged property; 2) pay the cost of repairing or replacing the lost or damaged property; 3) rebuild, repair, or replace the prop- erty with other property of equivalent kind and quality, to the extent prac- ticable, within a reasonable time; or 4) take all or any part of the property at the agreed or appraised value. b. Notice Of Our Intent To Rebuild, Repair, Or Replace -- "We" must give "you" no- tice of 'bur" intent to rebuild, repair, or replace within 30 days after receipt of a duly executed proof of loss. 2. Your Losses -- a. Adjustment And Payment Of Loss -- "We" adjust all losses with "you". Pay- ment will be made to "you" unless an- other loss payee is named in the policy. IM 7100 06 04 Copyright, American Association of Insurance Services, Inc., 2004 AAIS IM 7100 06 04 Page 13 of 15 b. Conditions For Payment Of Loss -- An in- sured loss will be payable 30 days after: 1) a satisfactory proof of loss is received; and 2) the amount of the loss has been es- tablished either by written agree- ment with "you" or the filing of an appraisal award with "us". 3. Property Of Others -- a. Adjustment And Payment Of Loss To Property Of Others -- Losses to property of others may be adjusted with and paid to: 1) "you" on behalf of the owner; or 2) the owner. b. We Do Not Have To Pay You If We Pay The Owner -- If "we" pay the owner, 2 "we" do not have to pay "you". "We" may also choose to defend any suits brought by the owners at "our" expense. 3 OTHER CONDITIONS The appraisers will then determine and state separately the amount of each loss. The appraisers will also determine the value of covered property items at the time of the loss, if requested. If the appraisers submit a written report of any agreement to "us", the amount agreed upon will be the amount of the loss. If the appraisers fail to agree within a reasonable time, they will submit only their differences to the umpire. Written agreement so itemized and signed by any two of these three, sets the amount of the loss. Each appraiser will be paid by the party se- lecting that appraiser. Other expenses of the appraisal and the compensation of the umpire will be paid equally by "you" and "us". Benefit To Others -- Insurance under this cov- erage will not directly or indirectly benefit anyone having custody of "your" property. Conformity With Statute -- When a condition of this coverage is in conflict with an applica- ble law, that condition is amended to conform to that law. 1. Appraisal -- If "you" and "we" do not agree 4. Estates -- This provision applies only if the on the amount of the loss or the value of cov- insured is an individual. ered property, either party may demand that a. Your Death -- On "your" death, "we" cov- these amounts be determined by appraisal. er the following as an insured: If either makes a written demand for apprais- 1) the person who has custody of al, each will select a competent, independent "your" property until a legal repre- appraiser and notify the other of the apprais- sentative is qualified and appointed; er's identity within 20 days of receipt of the or written demand. The two appraisers will then 2) "your" legal representative. select a competent, impartial umpire. If the This person or organization is an insured two appraisers are unable to agree upon an "you" "we" only with respect to property covered by umpire within 15 days, or can ask this coverage. a judge of a court of record in the state where the property is located to select an umpire. b. Policy Period Is Not Extended -- This cov- erage does not extend past the policy pe- riod indicated on the declarations. IM 7100 06 04 Copyright, American Association of Insurance Services, Inc., 2004 AAIS IM 7100 06 04 Page 14 of 15 5 6 7 8 Misrepresentation, Concealment, Or Fraud -- This coverage is void as to "you" and any oth- er insured if, before or after a loss: a. "you" or any other insured have willfully concealed or misrepresented: 1) a material fact or circumstance that relates to this insurance or the sub- ject thereof; or 2) "your" interest herein. b. there has been fraud or false swearing by "you" or any other insured with regard to a matter that relates to this insurance or the subject thereof. Policy Period -- "We" pay for a covered loss that occurs during the policy period. Recoveries -- If "we" pay "you" for the loss and lost or damaged property is recovered, or payment is made by those responsible for the loss, the following provisions apply: a. "you" must notify "us" promptly if "you" recover property or receive payment; b. "we" must notify "you" promptly if "we" recover property or receive payment; c. any recovery expenses incurred by either are reimbursed first; d. "you" may keep the recovered property but "you" must refund to "us" the amount of the claim paid or any lesser amount to which "we" agree; and e. if the claim paid is less than the agreed loss due to a deductible or other limiting "terms" of this policy, any recovery will be prorated between "you" and "us" based on 'bur" respective interest in the loss. Restoration Of Limits -- Except as indicated under Limited Fungus Coverage, a loss "we" pay under this coverage does not reduce the applicable 'limits". IM 7100 06 04 9. Subrogation -- If "we" pay for a loss, "we" may require "you" to assign to "us" "your" right of recovery against others. "You" must do all that is necessary to secure 'bur" rights. "We" do not pay for a loss if "you" impair this right to recover. "You" may waive "your" right to recover from others in writing before a loss occurs. 10. Suit Against Us -- No one may bring a legal action against "us" under this coverage un- less: a. all of the "terms" of this coverage have been complied with; and b. the suit has been brought within two years after "you" first have knowledge of the loss. If any applicable law makes this limita- tion invalid, then suit must begin within the shortest period permitted by law. 11. Territorial Limits -- "We" cover property while it is in the United States of America, its territories and possessions, Canada, and Puerto Rico. 12. Carriers For Hire -- "You" may accept bills of lading or shipping receipts issued by carriers for hire that limit their liability to less than the actual cash value of the covered property. ADDITIONAL COVERAGE LIMITATIONS When Coverage Ceases -- Coverage ends when one of the following first occurs: 1. this policy expires or is canceled; 2. the covered installation or construction project is accepted by the purchaser; Copyright, American Association of Insurance Services, Inc., 2004 AAIS IM 7100 06 04 Page 15 of 15 3. "your" insurable interest in the covered prop- erty ceases; 4. "you" abandon the installation or construc- tion project with no intent to complete it; IM 7100 06 04 5. the installation or construction project has been completed for more than 30 days; or 6. the covered property has been put to its in- tended use. However, this does not apply to roofs or walls. Copyright, American Association of Insurance Services, Inc., 2004 Signature: &,V Ax1-9 Will Moore (Sep 17, 202111:31 PDT) Email: wmoore@kentwa.gov Signature: L9- Email: rlashley@kentwa.gov Signature: �"0.'�2zY Brian Levenhagen (Sep 23, 202109:31 PDT) Email: bjlevenhagen@kentwa.gov FAC-CFC Construction -CONTRACT Final Audit Report 2021-09-23 Created: 2021-09-17 By: Diana lazouski (Dlazouski@kentwa.gov) Status: Signed Transaction ID: CBJCHBCAABAAbdh7bHMcAU1Kfj-xklLQGgD05uWlCyPB "FAC-CFC Construction -CONTRACT" History Document created by Diana lazouski (Dlazouski@kentwa.gov) 2021-09-17 - 6:15:31 PM GMT- IP address: 146.129.252.126 Document emailed to Will Moore (wmoore@kentwa.gov) for signature 2021-09-17 - 6:20:52 PM GMT s Email viewed by Will Moore (wmoore@kentwa.gov) 2021-09-17 - 6:31:23 PM GMT- IP address: 146.129.252.126 Document e-signed by Will Moore (wmoore@kentwa.gov) Signature Date: 2021-09-17 - 6:31:54 PM GMT - Time Source: server- IP address: 146.129.252.126 Document emailed to chris cummings (cfc1construct@gmail.com) for signature 2021-09-17 - 6:31:57 PM GMT `1 Email viewed by chris cummings (cfc1construct@gmail.com) 2021-09-18 - 8:49:44 PM GMT- IP address: 66.249.84.232 Document e-signed by chris cummings (cfc1construct@gmail.com) Signature Date: 2021-09-20 - 1:49:38 PM GMT - Time Source: server- IP address: 73.118.177.99 Document emailed to Ronald Lashley (rlashley@kentwa.gov) for signature 2021-09-20 - 1:49:42 PM GMT 3 Email viewed by Ronald Lashley (rlashley@kentwa.gov) 2021-09-22 - 5:35:27 PM GMT- IP address: 146.129.252.126 Document e-signed by Ronald Lashley (rlashley@kentwa.gov) Signature Date: 2021-09-22 - 5:50:06 PM GMT - Time Source: server- IP address: 146.129.252.126 Document emailed to Brian Levenhagen (bjlevenhagen@kentwa.gov) for signature 2021-09-22 - 5:50:08 PM GMT Adobe Sign 5 Email viewed by Brian Levenhagen (bjlevenhagen@kentwa.gov) 2021-09-23 - 4:11:25 PM GMT- IP address: 12.23.243.2 Document e-signed by Brian Levenhagen (bjlevenhagen@kentwa.gov) Signature Date: 2021-09-23 - 4:31:35 PM GMT - Time Source: server- IP address: 12.23.243.2 ® Agreement completed. 2021-09-23 - 4:31:35 PM GMT a Adobe Sign