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17-164.00 Arctic Lighting & Electrical: City Hall Heat Trace i1-f0 CONSTRUCTION AGREEMENT Arctic Lighting&Electrical LLC THIS CONSTRUCTION AGREEMENT (the "Agreement") is made by and between the City of Spokane Valley, a code City of the State of Washington ("City") and Arctic Lighting & Electrical LLC, ("Contractor")jointly referred to as the"Parties". IN CONSIDERATION of the terms and conditions contained herein the Parties agree as follows: 1.Work to Be Performed. Contractor shall do all work and furnish all labor, supervision,tools,materials, supplies, and equipment and other items necessary for the construction and completion of the Heat Trace Project (the "Work") in accordance with documents described in Exhibit A and in accordance with this Agreement (which are by this reference incorporated herein and made part hereof and referred to as the "Contract Documents"), and shall perform any changes in the work in accordance with the Contract Documents. The terms and provisions in this Agreement shall control over any inconsistent or incompatible terms in any other Contract Document. Contractor shall, for the amount set forth in paragraph 4,below, assume and be responsible for the cost and expense of all work required for constructing and completing the Work and related activities to the City's satisfaction, provided for in the Contract Documents, within the time limits prescribed in the Contract Documents. The City Manager or designee shall administer and be the primary contact for Contractor. Upon notice from City,Contractor shall promptly commence work,complete the same in a timely manner,and cure any failure in performance under this Agreement. Unless otherwise directed by City,all work shall be performed in conformance with the Contract Documents, and all City,state,and federal standards,codes,ordinances,regulations,and laws as now existing or as may be adopted or amended. 2, Time for Performance. Contractor shall commence the Work within 10 days of execution of this Agreement and shalF complete the Work within the times specified in the Contract Documents, as may be extended in accordance with this Agreement and the Contract Documents. 3. Liquidated Damages. Time is of the essence for this Agreement. Delays cause inconvenience to the residents of City and cost taxpayers undue sums of money,adding time needed for administration,engineering, inspection, and supervision. It is impractical for City to calculate the actual cost of delays. Accordingly, Contractor agrees to pay liquidated damages for failure to achieve Substantial Completion(as defined in the Contract Documents)which shall be in the amount of$100.00 per day. These liquidated damages are not a penalty,but are fixed and agreed upon by and between Contractor and City because of the impracticability and difficulty of fixing and ascertaining the actual damages that City would sustain in the event that the Work is not completed in accordance with the Contract Documents. Liquidated damages may be retained by City and deducted from payments otherwise due to the Contractor. 4. Compensation. In consideration of Contractor performing the Work, City agrees to pay Contractor in accordance with the Contract Documents the sum of $36,454.00, plus Washington State Sales Tax of $3,207.95(if applicable),for a total of$39,661.95,based on the bid submitted by Contractor(Exhibit B),and as may be adjusted in accordance with the Contract Documents. Construction Agreement Page 1 of 7 5.Payment. Contractor may elect to be paid in monthly installments,upon presentation of an application for payment in a form satisfactory to City. Applications for payment shall be sent to the City Finance Department at the address stated in paragraph 6. Pursuant to chapter 60.28 RCW, five percent of the compensation due Contractor shall be retained by City. City reserves the right to withhold payment under this Agreement for that portion of the work(if any)which is determined in the reasonable judgment of the City Manager or designee to be noncompliant with the Contract Documents, City standards, City Code, state standards,or federal standards. 6. Notice. Notice other than applications for payment shall be given in writing as follows: TO THE CITY: TO THE CONTRACTOR: Name: Christine Bainbridge, City Clerk Name: Brian Chapman Phone: (509)720-5000 Phone: 509-533-9350 Address: 10210 East Sprague Avenue Address: 2307 N Woodruff Spokane Valley,WA 99206 Spokane Valley, WA 99206 7.Applicable Laws and Standards. The Parties,in the performance of this Agreement,agree to comply with all applicable federal,state,and local laws,codes,and regulations. 8. Certification Regarding Debarment, Suspension, and Other Responsibility Matters — Primary Covered Transactions. A.By executing this Agreement,the Consultant certifies to the best of its knowledge and belief,that it and its principals: 1. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency; 2. Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local)transaction or contract under a public transaction;violation of federal or state antitrust statutes or commission of embezzlement,theft,forgery,bribery,falsification or destruction of records,making false statements,or receiving stolen property; 3. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with commission of any of the offenses enumerated in paragraph(A)(2)of this certification; and 4. Have not within a three-year period preceding this application/proposal had one or more public transactions(federal, state, or local)terminated for cause or default. B. Where the prospective primary participant is unable to certify to any of the statements in this certification,such prospective participant shall attach an explanation to this Agreement. 9.Prevailing Wages on Public Works. Contractor,any subcontractor,or other person doing work under this Agreement, shall comply with the requirements of chapter 39.12 RCW, and shall pay each employee an amount not less than the Prevailing Rate of Wage,as specified by the Industrial Statistician of the Washington Construction Agreement Page 2 of 7 State Department of Labor and Industries("L&I"). If employing labor in a class not shown,Contractor shall request a determination of the correct wage rate for the class and locality from the Industrial Statistician. Contractor shall provide a copy of any such determinations to City. Before commencing,during,and upon completion of the work,Contractor shall file all forms and pay all fees required by L&I and shall indemnify and hold City harmless from any claims related to its failure to comply with chapter 39.12 RCW. The following information is provided pursuant to RCW 39.12.030: A. State of Washington prevailing wage rates applicable to this public works project, published by L&I,are located at the L&I website address: https://fortress.wa.gov/lni/wagelookup/prvWagelookup.aspx B. This Project is located in Spokane County. C. The effective prevailing wage date is the same date as the bid due date as referenced in the original request for bids and as may be revised by addenda. A copy of the applicable prevailing wage rates is also available for viewing at the City Public Works Department located at 10210 East Sprague Avenue,Spokane Valley,WA 99206. Upon request,City will mail a hard copy of the applicable prevailing wages for this project. 10. Relationship of the Parties. It is understood and agreed that Contractor shall be an independent contractor and not the agent or employee of City,that City is interested only in the results to be achieved,and that the right to control the particular manner,method,and means in which the services are performed is solely within the discretion of Contractor. Any and all employees who provide services to City under this Agreement shall be deemed employees solely of Contractor. Contractor shall be solely responsible for the conduct and actions of all its employees under this Agreement and any liability that may attach thereto. 11.Ownership of Documents. All drawings,plans,specifications,and other related documents prepared by Contractor under this Agreement are and shall be the property of City, and may be subject to disclosure pursuant to chapter 42.56 RCW, or other applicable public record laws. 12.Records. The City or State Auditor or any of their representatives shall have full access to and the right to examine during normal business hours all of Contractor's records with respect to all matters covered in this Agreement. Such representatives shall be permitted to audit,examine,make excerpts or transcripts from such records,and to make audits of all contracts,invoices,materials,payrolls,and record of matters covered by this Agreement for a period of three years from the date fmal payment is made hereunder. 13.Warranty. Unless provided otherwise in the Contract Documents,Contractor warrants that all Work and materials performed or installed under this Agreement are free from defect or failure for a period of one year following fmal acceptance by City,unless a supplier or manufacturer has a warranty for a greater period,which warranty shall be assigned or transferred to City. In the event a defect or failure occurs in work or materials, Contractor shall, within the warranty period, remedy the same at no cost or expense to City. This warranty provision shall not be construed to establish a period of limitation with respect to Contractor's other obligations under this Agreement. Construction Agreement Page 3 of 7 14.Contractor to Be Licensed and Bonded. Contractor shall be duly licensed,registered,and bonded by the State of Washington at all times this Agreement is in effect. 15.Contractor to Provide Performance and Payment Bonds. Contractor shall provide a payment bond and a performance bond in the full amount of the Agreement on the City's bond forms. Alternatively,Contractor may elect to have the City retain 50%of the Agreement amount in lieu of providing the City with a payment bond and a performance bond,pursuant to RCW 39.08.010(3). 16. Insurance. 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 Contractor, its agents,representatives, or employees. A. Minimum Scope of Insurance. Contractor shall obtain insurance of the types described below: 1.Automobile liability insurance covering all owned,non-owned,hired,and leased vehicles. Coverage shall be written on Insurance Services Office(ISO)form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2.Commercial general liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises,operations,independent contractors,products- completed operations, stop gap liability, personal injury, advertising injury, and liability assumed under an insured contract. The commercial general liability insurance shall be endorsed to provide a per project aggregate limit using ISO form CG 25 03 05 09 or an equivalent endorsement. There shall be no endorsement or modification of the commercial general liability insurance for liability arising from explosion, collapse, or underground property damage. City shall be named as an additional insured under Contractor's commercial general liability insurance policy with respect to the work performed for City using ISO Additional Insured endorsement CG 20 10 10 01 and Additional Insured-Completed Operations endorsement CG 20 37 10 01 or substitute endorsements providing equivalent 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.Automobile liability insurance with a minimum combined single limit for bodily injury and property damage of no less than$1,000,000 per accident. 2.Commercial general liability insurance shall be written with limits no less than$1,000,000 each occurrence, $2,000,000 general aggregate, and no less than a $2,000,000 products- completed operations aggregate limit. C. Other Insurance Provisions. The insurance policies are to contain,or be endorsed to contain,the following provisions for automobile liability and commercial general liability insurance: 1. Contractor's insurance coverage shall be primary insurance with respect to City. Any insurance, self-insurance, or insurance pool coverage maintained by City shall be excess of Construction Agreement Page 4 of 7 Contractor's insurance and shall not contribute with it. 2. Contractor shall fax or send electronically in .pdf format a copy of insurer's cancellation notice within two business days of receipt by Contractor. 3.If Contractor maintains higher insurance limits than the minimums shown above,City shall be insured for the full available limits of commercial general and excess or umbrella liability maintained by Contractor, irrespective of whether such limits maintained by Contractor are greater than those required by this Agreement or whether any certificate of insurance furnished to the City evidences limits of liability lower than those maintained by Contractor. 4. Failure on the part of Contractor to maintain the insurance as required shall constitute a material breach of this Agreement, upon which the City may, after giving at least five business days' notice to Contractor to correct the breach, immediately terminate the Agreement, or at its sole discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to City on demand, or at the sole discretion of the City, offset against funds due Contractor from the City. D.Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M.Best rating of not less than E. Evidence of Coverage. As evidence of the insurance coverages required by this Agreement, Contractor shall furnish acceptable insurance certificates to City at the time Contractor returns the signed Agreement,which shall be Exhibit C. The certificate shall specify all of the parties who are additional insureds,and shall include applicable policy endorsements,and the deduction or retention level. Insuring companies or entities are subject to City acceptance. If requested,complete copies of insurance policies shall be provided "to City. Contractor shall be fmancially responsible for all pertinent deductibles,self-insured retentions,and/or self-insurance. F.Subcontractor Insurance. Contractor shall cause each and every subcontractor to provide insurance coverage that complies with all applicable requirements of the Contractor-provided insurance as set forth herein,except Contractor shall have sole responsibility for determining the limits of coverage to be required to be obtained by subcontractors. Contractor shall ensure that the City is an additional insured on each and every subcontractor's commercial general liability insurance policy using an endorsement at least as broad as ISO additional insured endorsement CG 20 38 04 13. 17.Indemnification and Hold Harmless. Contractor shall,at its sole expense,defend,indemnify,and hold harmless City and its officers, agents, and employees, from any and all claims, actions, suits, liability, loss, costs,attorney's fees and costs of litigation,expenses,injuries,and damages of any nature whatsoever relating to or arising out of the wrongful or negligent acts,errors,or omissions in the services provided by Contractor, Contractor's agents, subcontractors, subconsultants, and employees to the fullest extent permitted by law, subject only to the limitations provided below. Contractor's duty to defend,indemnify,and hold City harmless shall not apply to liability for damages arising out of such services caused by or resulting from the sole negligence of City or City's agents or employees. Contractor's duty to defend,indemnify,and hold City harmless against liability for damages arising out of such services caused by the concurrent negligence of(a)City or City's agents or employees, and(b)Contractor, Construction Agreement Page 5 of 7 Contractor's agents, subcontractors, subconsultants, and employees shall apply only to the extent of the negligence of Contractor,Contractor's agents,subcontractors,subconsultants, and employees. Contractor's duty to defend,indemnify,and hold City harmless shall include,as to all claims,demands,losses, and liability to which it applies,City's personnel-related costs,reasonable attorneys'fees,and the reasonable value of any services rendered by the office of the City Attorney,outside consultant costs,court costs,fees for collection, and all other claim-related expenses. Contractor specifically and expressly waives any immunity that may be granted it under the Washington State Industrial Insurance Act,Title 51 RCW. These indemnification obligations shall not be limited in any way by any limitation on the amount or type of damages,compensation,or benefits payable to or for any third party under workers' compensation acts, disability benefit acts, or other employee benefits acts. Provided, that Contractor's waiver of immunity by the provisions of this paragraph extends only to claims against Contractor by City,and does not include,or extend to,any claims by Contractor's employees directly against Contractor. Contractor hereby certifies that this indemnification provision was mutually negotiated. 18.Waiver. No officer,employee,agent,or other individual acting on behalf of either party has the power, right,or authority to waive any of the conditions or provisions of this Agreement. No waiver in one instance shall be held to be waiver of any other subsequent breach or nonperformance. All remedies afforded in this Agreement or by law shall be taken and construed as cumulative and in addition to every other remedy provided herein or by law. Failure of either party to enforce at any time any of the provisions of this Agreement or to require at any time performance by the other party of any provision hereof shall in no way be construed to be a waiver of such provisions nor shall it affect the validity of this Agreement or any part thereof. 19. Assignment and Delegation. Neither party shall assign, transfer, or delegate any or all of the responsibilities of this Agreement or the benefits received hereunder without first obtaining the written consent of the other party. 20. Confidentiality. Contractor may,from time-to-time,receive information which is deemed by City to be confidential. Contractor shall not disclose such information without the prior express written consent of City or upon order of a Court of competent jurisdiction. 21.Disputes. All disputes arising under or related to this Agreement that cannot be resolved through informal discussion and negotiations shall be resolved by litigation filed in the Superior Court of the State of Washington for Spokane County,unless otherwise required by applicable federal or state law. 22. Subcontractor Responsibility. As required by RCW 39.06.020, Contractor shall verify responsibility criteria for each first tier subcontractor and its subcontractors of any tier that hires other subcontractors shall verify responsibility criteria for each of its subcontractors. Verification shall include that each subcontractor,at the time of subcontract execution,meets the responsibility criteria listed in RCW 39.04.350(1)and possesses an electrical contractor license,if required by chapter 19.28 RCW,or an elevator contractor license if required by chapter 70.87 RCW. This verification requirement shall be included in every subcontract of every tier. 23.Jurisdiction and Venue. This Agreement is entered into in Spokane County,Washington. Venue shall be in Spokane County, State of Washington. 24. Entire Agreement. This Agreement constitutes the entire and complete agreement between the parties and supercedes any prior oral or written agreements. This Agreement may not be changed,modified,or altered Construction Agreement Page 6 of 7 except in writing signed by the Parties. 25. Anti-kickback. No officer or employee of City. having the power or duty to perform an official act or action related to this Agreement, shall have or acquire any interest in this Agreement, or have solicited, accepted.or granted a present or future gift, favor, service, or other thing of value from any person with an interest in this Agreement. 26.Business Registration. Prior to commencement of Work under this Agreement,Contractor shall register with the City as a business if it has not already done so. 27.Severability. If any section,sentence,clause,or phrase of this Agreement should be held to be invalid for any reason by a court of competent jurisdiction,such invalidity shall not affect the validity of any other section, sentence,clause,or phrase of this Agreement. 28. Exhibits. Exhibits attached and incorporated into this Agreement are: A. Scope of Work B. Cost Statement C. Insurance Endorsements The Parties have executed this Agreement this LZ day of A/L2 ,20 /7- CITY OF SPOKANE VALLEY: Contractor: ( I . . „ (2.74 Mal Calhoun, City Manager By: Its: Author ed Representative ATTEST: Christine Bainbridge,City Clerk 1 APPROVED AS TO FORM: 1 Ofti f the Ci •ncy Construction Agreement Page 7 ol'7 t9Seetie • Ceket/yeie _ — de 2307 North Woodruff Spokane Valley, WA 99206 Phone (509)533-9350 Fax(509)533-9353 ARCTILE930DG November 11, 2017 City of Spokane Valley 10210 E. Sprague Spokane, WA 99206 ATTN:•Deanna Horton SUBJECT: Proposal for the heat tape revised after meeting Dear Deanna: The following is the quote to install the heating cable in the gutters and downspouts at the New City Hall building for the City of Spokane Valley. Proposal is based on the plans and specifications which include sheet revised plans E3.40 and E3.41, and is per the specifications provided by DEI as well. Proposal includes bonding as required, but does not include sales tax. Changed Items: 1- No roof drains are protected(per new drawings) 2- Removed heat tape in the 1"and 2nd floor area over glass on west side (Now an additive item still not sure how to feed these yet) 3- Removed 2 of the sensors, only installing one now DDC contractor maybe needed to connect to your system as well.But that is simple. 4- Changed panel feeder location Bid for heating cable installation:$33,556.00 with bond no sales tax. Add for West entry 1s`and 2nd-floor:$2,898.00 with bond no sales tax. 5G, Li5Y. Sincerely, 3 a o 7 -11 a q (alo i' q Brian D. Chapman s +0 (01- President Exhibit A&B 1 -FIN ARCTLJG-01 WRICHARD AGGPRIZ ° DATE(YMIDWYYYY) ‘...,,,,--- CERTIFICATE OF LIABILITY INSURANCE 11/17/2017 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: if the certificate holder Is an ADDITIONAL INSURED,the policy(les)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such MCI'NAYS PRODUCER T Spokane Office .I;,ed),(509)8384501 I FAX No):(509)8384511 PayneWeet insurance Inc. 601 N.R1w9nt Blvd.,Ste 403 ss: Spokane,WA 02 INSURER(a)AFFORDING COVERAGE NAIL a INSURER A Cincinnati insurance Companies 10877 INSURED INSURER B: Arctic Lighting&Electric LLC INSURER C: 2307 Woodruff Rd INSURER D: Spokane Valley,WA 99208 INSURER 5: INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADDL SUBR POLICY EFF POLICY EXP LTR TYPE OF INSURANCE NSD WVD POLICY NUMBER (YWpDryyyy) (MWDIVY YY) LIMBS A X COMMERciaL GENERAL LIABIUTY EACH OCCURRENCE $ 1,000,000 CLAIMS-MADE X OCCUR X X EPP0178710 02/02/2017 02/02/2018 PREMISES?El oCaRence) $ 500,000 MED EXP(Any one person) $ 10,000 X 8500 PD Deductible PERSONAL 8 ADV INJURY $ 1,000,000 GEML AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 POLICY X128 LOC PRODUCTS-COMP/OP AGG $ 2,000,000 OTHER: WA STOP GAP $ 1,000,000 A AUTOMOBILE WMLITY (Ea accidenSINGLE LIMIT $ 1,000,000 X ANY AUTO X X EPP0178710 02/02/2017 02/02/2018 BODILY INJURY(Per person) $ OWNED — SCHEDULED AUTOSREONLY AUTOS yy p pBODILY INJURY(Per accident) $ X AUTOS ONLY X AUTO ONLY (Per accident) MAGE i X Deductible:$0 A X UMSRElA W1B _ OCCUR EACH OCCURRENCE $ 2,000,000 EXCESS LIAB CLAIMS-MADE EPP0178710 02/02/2017 02/02/2018 I AGGREGATE 2,000,000 DED X RETENTION$ 0 $ WORKERS OTH- AND LIABILITY Y/N STATUTE ER ANY PROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT $ FQF ICER/MMEM }2EXCLUDED? NIA (wn via E.L.DISEASE-EA EMPLOYEE $ M describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ A Installation Floater EPP0178710 02/02/2017 02/02/2018 Loc.Transit/Temp Loc 200,000 A EPP0178710 02/02/2017 02/02/2018 Deductible 500 DESCRIPTION OF OPERATIONS/LOCATWNS/VEHICLES(ACORD 101,Additional Remarks Schedule,may be attached Ir mon aper b required) Cincinnati Insurance Company:910877,A+XV RE:Heat trace contract City of Spokane Valley is additional Insured per the attached forms.Coverage Is primary and non contributory.Waiver of subrogation and per project aggregate appilea. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE City Of Spokane Valley THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 11707E Sprague,Ste 108 ACCORDANCE WITH THE POLICY PROVISIONS. Spokane,WA 99208 AUTHORIZED REPRESENTATIVE 162,nj.41grifiOd ACORD 25(2018/03) ©1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CONTRACTORS' COMMERCIAL GENERAL LIABILITY BROADENED ENDORSEMENT This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL UABIUTY COVERAGE PART A. Endorsement-Table of Contents: Coverage: Begins on Page: 1. Employee Benefit Liability Coverage ,..., 2 2. Unintentional Failure to Disclose Hazards 7 3. Damage to Premises Rented to`You 8 4. Supplementary Payments 9 5. Medical Payments, ..... 9 6. Voluntary Property Damage(Coverage a.)and Care,Custody or Control Liability Coverage(Coverage b.) 9 180 Da C• et.e o Newly Formed or Acquired Organizations 1.0 1°i° 'Y r. re _i •red-Specified Relationships: 10 Man-•ers or Lessors of Premises; State or Political Subdivisions-Permits Relating to Premises; air } >s".c, d L?A_`e,s.. 10. Broa erred Contractua to•i i y-Work Within 50'of Railroad Property 14 11. Property Damage to Borrowed Equipment 14 12. Employees as insureds -Specified Health Care Services: 14 Nurses; Emergency'Medical Technicians:and Paramedics 13. Broadened Notice of Occurrence 14 B. Limits of Insurance: The Commercial General Liability Limits of insurance apply to the insurance provided by this endorse- ment,except as provided below: 1. Employee Benefit Liability Coverage Each Employee Limit: $ 1,000,000 Aggregate Limit: $ 3,000,000 Deductible: $ 1,000 3. Damage to Premises Rented to You The lesser of: a. The Each Occurrence Limit shown in the Declarations;or b. $500,000 unless otherwise stated$ 4. Supplementary Payments a. Bail bonds: $ 1,000 b. Loss of earnings: $ 350 5. Medical Payments Medical Expense Limit: $ 10,000 Includes copyrighted material of Insurance GA 233 02 07 Services Office, Inc.,with its permission. Page 1 of 15 6. Voluntary.Property Damage(Coverage a.)and Care, Custody or Control Liability Coverage (Coverage b.) Limits of Insurance (Each Occurrence) Coverage.a."$1,000 Coverageb.$5,000 unless otherwise stated $ Deductibles (Each Occurrence) Coverage a.$250 Coverage b.$250 unless otherwise stated $ COVERAGE PREMIUM BASIS RATE ADVANCE PREMIUM • (a Area (For Limits in Excess of (For Limits in Excess of b) Payroll $5,000) $5,000) (c) Gross Sales (d) Units (e) Other b. Care, Custody $ or Control TOtAL ANNUAL PREMIUM $ 11. Property Damage to Borrowed Equipment EachOccurrence Limit: $ 10,000 Deductible: $ 250 C. Coverages: have used up the ap- plicable p- icn limit of 1. Employee Benefit Liability Coverage ance in the payment of a. The following is added to SECTION I judgments or settle- - COVERAGES: Employee Benefit merits. Liability Coverage. No other obligation or liabil- (1) Insuring Agreement ity to pay sums or perform acts or services is covered (a) We will pay those sums that unless explicitly provided for the insured becomes legally under Supplementary Pay- obligated to pay as dam- meats. ages caused by any act,er- (b) This insurance applies to ror or omission of the in- damages only if the act, er- sured, or of any other per- ror or omission, is negll- son for whose acts the, in- sured is legally liable., to "administration" of your which this insurance 'ap- plies. We will have the right gram";and and duty to defend the in- sured against any "suit" 1) Occurs during the pol- seeking those damages. icy period;or However, we will have no duty to defend against any 2) Occurred prior to the "suit" seeking damages to effective date of this which this insurance does endorsement provided: not apply. We may, at our discretion, investigate any a) You did not have report of an act, error or knowledge of a omission and settle any claim or "suit" on claim or "suit" that may re- or before the ef- suit But: fective date of this endorsement 1) The amount we will pay for damages is limited You will be as described in SEC- deemed to have TION Ill - LIMITS OF knowledge of a INSURANCE;and claim or "suit" when any 2) Our right and duty to "authorized repre- defend ends when we sentative"; Includes copyrighted material of Insurance GA 233 02 07 Services Office, Inc.,with its permission. Page 2 of 15 , i) Reports all, or formance of investment any part,of the vehicles;or act, error or 3) Advice given to any orrany omission ntaus other person with respect to insurer; that person's I decision to participate or not to ii) Receives a participate in any plan written or ver- included in the "em- bal demand or ployse benefit pro- claim for darn- gram". ages because of the act, er- (1) Workers' Compensation ror or omis- and Similar Laws sion;and Any claim arising out of b) There is no other your failure to comply with applicable insur- the mandatory provisions of ante any workers'compensation, unemployment compensa- (2) Exclusions tion insurance, social secu- rityThis insurance does nota I ranyosdimilar benefits law Apply or similar law. to: (a) Bodily Iniury, Property (g) ERISA Damage or Personal and Damages for which any in- Advertising Injury sured is liable because of "Both injury", "property liability imposed on a fduci- ty 1 ry� p y ary by the Employee Re- damage" or personal and tirement Income Security advertising.injury". Act of 1974, as now or (b) Dishonest, Fraudulent, hereafter amended, or by any s Criminal or'Malicious Act similar federal, state or local laws. Damages arising out of any (h) Available Benefits intentional, dishonest, fraudulent, criminal or mall- My claim for benefits to the cious act, error or omission, extent that such benefits committed by any insured, are available, with reason- including the willful or reek- able effort and cooperation . less violation of any statute. of the insured, from the ap- plicable(c) Failure to. Perform a Con- funds accrued or tract other colleotil?le•insmance, Damages arising out of fail- (i) Taxes,Fines or Penalties ure of performance of con- Taxes, fines or penalties, tract by any insurer, including those imposed (d) Insufficiency of Funds under the Internal Revenue Code or any similar state or Damages arising out of an local law. insufficiency of funds to Employment-Related meet any obligations under (j) Practices any plan included in the "employee benefit pro- Any liability arising out of gram". any: (e) Inadequacy of Perform- (1) Refusal to employ; once of Investment i Ad- vice Given With Respect (2) Termination of em- to Participation ployment; Any claim based upon: (3) Coercion, demotion, 1) Failure of anyinvest- evaluation, reassign- ment, discipline, dela- ment to perform; mation, harassment, 2) Errors in providing in- humiliation, discrimina- formation on past per- , er tion or other employ- formation copyrighted material of Insurance GA 233 02 07 Services Office, Inc.,with its permission. Page 3 of 15 ment-related practices, (e) A trust, you are an insured. acts or omissions;or Your trustees are also in- sureds, but only with re- (4) Consequential liability spect to their duties as as a result of(1),(2) or trustees. (3)above. This exclusion applies (2) of the following is also an insured: whether the insured may be held liable as an. employer (a) Each of your "employees" or in any other capacity and who is or was authorized to to any obligation to share administer your "employee damages with or repay ' benefit program". someone else who must pay damages because of (b) Any persons, organizations the injury. or employees" having proper temporary authori- (3) Supplementary Payments zation to administer your "employee benefit program" SECTION I - COVERAGES, if you die,but only until your SUPPLEMENTARY PAY- legal representative is ap- • MENTS - COVERAGES A AND pointed. B also apply to this Coverage. b. Who an Insured (c) Your legal representative if yoU die, but only with re- As respects Employee Benefit Llabif spect to duties as such. ity SECTION II - WHO IS That representative will INSURE,Coverage is deleted in its en- have all your rights and AN NSU du- tirety and feplaced by the following: ties under this Coverage Part. (1) 1f you are designated in the Declarations as: (3) Any organization you newly ac- quire or form, other than a part- (a) An individual,you and yournershipt joint venture or {united spouse are insureds, but liability company, and over only with respect to the which you maintain ownership conduct of a business of or majority interest, will qualify which you are the sole is a Named Insured if no other owner. similar insurance applies to that organization. However, cover- (b) A partnership or joint yen- age under this provision: ture, you are an insured. Your members, your part- (a) Is afforded only until the ners, and their spouses are 180th day after you acquire also insureds but only-with or form the organization or respect to the conduct of the end of the policy period, your business, whichever is earlier:and (c) A limited liability company, (b) Does not apply to any act, you are an insured. Your error or omission that was members are also insureds, committed before you ac- but only with respect to the quired or formed the or- conduct of yourbusiness. ganization. Your managers are in- c. Limits of Insurance sureds, but only with re- spect to their duties as your As respects Employee Benefit Liabil- managers. ity Coverage, SECTION III - LIMITS (d) An organization other than OF INSURANCE is deleted in its en- a partnership, joint venture tirety and replaced by the following: or limited liability company, (1) The Limits of Insurance shown you are an insured. Your in Section B. Limits of Incur- • executive officers" and di- ance, 1. Employee Benefit Li- rectors are insureds, but ability Coverage and the rules only with respect to their below fix the most we will pay duties as your officers or di- regardless of the number of: rectors. Your stockholders are also insureds, but only (a) Insureds; with respect to their liability as stockholders. Includes copyrighted material of insurance GA 233 02 07 Services Office, Inc.,with its permission. Page 4 of 15 (b) Claims made or 'suits" (b) The deductible amount brought stated in the Declarations (c) Persons or organizations applies to all damages sustained by arty one "em- making claims or .bringing • ployee", in luding such "suits"; employee's" dependents (d) Acts, errors or omi signs;or and beneficiaries, because of all acts, errors or onus- (e) Benefits included in your sions to which this insur- 'employee benefit pro- ance applies. grad'. (c) The terms of this insurance, (2) The Aggregate Limit shown in including those with respect Section B. Limits of Insurance, to: 1. Employee Benefit Liability • 1) Our right and duty to Coverage rvof this endorsement defend the insured is the most.we will pay for all against any "suits" damages because .et acts, er- seeking those dam- rors or omissions q a negligently ss;and committed in the, administra- g tion' of your"employee benefit 2) Your duties, and the program : duties of ant/ other in- (3) Subject to the limit described in volved insured, in the (2):above, the Each Employee eventof an act,error or Limit shown in Secticii B. Limits omission,or claim, of Insurance, 1. Employee apply irrespective of the Benefit Liability Coverage of application of the deductible this endorsernent is the most we amount. will pay for all damages ses- tained by any one "employee", (d) We may pay any part or all including damages sustained•by of the deductible amount to such 'em_ploye 's* dependents effect settlement of any and beneficiaries,as'a result of: claim or 'suit" and, upon (a) An act,error or omission;or notification of the action taken, you shall promptly (b) A series of related acts, er- reimburse us for such part rors or omissions, regard- of the deductible amount as less of the amount of time we have paid. that lapses „between such d. Additional Conditions acts,errors or,omissions, As respects EmploYee Benefit Li- negligently committed in" the ability Coverage, SECTION' 1V - administration' of your tern- COMMERCIAL GENERAL LIABIL- ployee benefit program". ITY CONDITIONS is amended as However, the amount paid un- follows: der this endorsement shall not (1) Item 2. Duties in the Event of exceed, and will be subject to Occurrence,Offense, Claim or the limits and restrictions that Suit is deleted in its entirety and apply to the payment of benefits replaced by the following: in any plan included in the "em- ployee benefit program". 2. Duties in the Event of an Act, Error or (4) Deductible Amount Omission,or Claim or Suit Our obligation to paydarn- a. You must see to it that we are noti- (a) 9 fled as soon as practicable of an act, ages on behalf of the in- error or omission which may result in cured applies only to the a claim. To the extent possible, no- amount of damages In ex- tice should include: cess of the deductible amount stated in the Decla- (1) What the act, error or omission rations as applicable to was and when it occurred;and Each Employee. The limits of insurance shall not be (2) The names and addresses of reduced by the amount of anyone who may suffer dam- this deductible. ages as a result of the act, error or omission. Includes copyrighted material of Insurance GA 233 02 07 Services Office, Inc.,with its permission, Page 5 of 15 b. if a claim is made or"suit" is brought b. Method of Sharing against any insured,you must: if all of the,other_insur- (1) immediately record the specifics encs permits contribu- of the claim or "suit" •and the tion by equal shares, date received;and WG will follow this method also. Under (2) Notify us as soon es practicable. this approach each in- You must see to it that we receive smror cantributes equal amounts until it has „ written notice of the claim os suit"as paid its applicable limit soon as practicable, of insurance or none of c. You and any other involved insured the loss remains, must: whichever comes first {i) Immediately send us ::copies of If any of the other in- any demands, notices, sum- surance does not per- monses or legal papers re- mit contribution by ceived in connection with the equal shares, we will claim or"suit"; contribute by limits. Under this method, (2) Authorize us to obtain records each insurer's share is and other information: based on the ratio of its 3 Codi erate with us in the invasti- ap! �cabie Jurat al in- ( ) P �' Si4rariciti to the fatal ap- gation or settlement of the claim pt cable limits of`ins re- ar deferisi . against the "suit"; ince of ail insurers. and c. No Coverage (4) Assist us, upon our request, in the enforcement of any right This insurance shall not against any person or organize- cover any loss for bon which may be liable to the which the insured is insured because of an act, error entitled to recovery un- or omission to which this insur- tier any other insur- ance may also apply_ ance in force previous ! at that in- to the effective.date of d. No insured will, except this Coverage Part. sured's own cost, voluntarily make a payment, assume any obligation, or e. Additional Definitions incur any expense without our con- sent. As respects Employee Benefit Li- ability Coverage, SECTION V - (2) Item 5. Other Insurance is de- DEFINITIONS is amended as fol- le ted in its entirety and'replaced lows: by the following: (1) The following definitions are 5. Other Insurance added: If other valid and collectible 1. "Administration"means: insurance is available to the insured for a loss we cover a. Providing information to under this Coverage Part, "employees", including our obligations are limited their dependents and as follows: beneficiaries,, with re- spect to eligibility for or a. Primary Insurance scope of "employee This insurance is pri- benefit programs ; mary except when c. b. Interpreting the "em- below applies. if this ployee benefit pro- insurance is primary, grams"; • our obligations are not affected unless any of c. Handling records in the other insurance is connection with the also primary. Then,we "employee benefit pro- will share with all that grams";or other insurance by the d. Effecting, continuing or method described in b. terminating any "em- • below. ployee's" participation Includes copyrighted material of insurance GA 233 02 07 Services Office, inc.,with its permission. Page 6 of 15 in any benefit included benefits, workers' corn- • in the "employee bene- pen sation and disabfity fit program". benefits;and However, "administration" d. Vacation plans, includ- daes not include: ing buy and sell pro- grams; leave of ab- a. Handling payroll sence programs, in- ductions;or eluding military, mater- b. The failure to effect or nity, family, and civil leave; tuition assis- maintain any insurance or adequate limits of tante plans;health club or- coverage of insurance, talion and including but not hinted subsidies. to unemployment in- (2) The, following definitions are surance, social security deleted in their entirety and re- benefits, workers' corn- placed by thefollowing: pensation and disability benefits. 21. "Suit" means a. civil pro- 2. "Cafeteria tans" means pro- ceeding in which money Ian authorized sapplica- damages because of an A by pp act, error or omission fo ble law to allow "employ- which this insurance applies ees" to elect to pay for cer- are alleged. 'Suit"includes: tain benefits 'With• pre-tax dollars. a. An arbitration pro- benefit pro- pro- ceeding in which such 3. "Employee ,damaged are claimed grams" means a program and to which the In- providing some or'all of the sured must submit or following benefits to "em- does submit with our ployees", whethdr provided consent; through a"cafeteria plan"or otherwise: , b. Any other alternative pro- a. Grouplife insurance; dispute resolution needing in which such group accident or damages are claimed health insurance; den- and to which the In- tal, vision and hearing sured submits with our plans; and flexible consent;or spending accounts: provided that no one c. An appeal of a civ other than :an 'em- proceeding. ployee" may subscribe to such benefits and 8. "Employee" means a per- such benefits are made son actively employed, for- generally available to merly employed, on leave those "employees'who of absence or disabled, or , satisfy the plan's efigi- retired. 'Employee" in- bility requirements; dudes a "leased worker". 1 "Employee" does not in- b. Profit sharing plans, elude a"temporary worker". employee savings plans, employee stock 2. Unintentional Failure to Disclose Haz- ownership plans, pen- ards sion plans and stock SECTION IV- COMMERCIAL GENERAL subscription plans, LIABILITY CONDITIONS, 7. Represen- provided that no one Cations is hereby amended by the addi- other than an "em- tion of the following: ployee" may subscribe to such benefits and Based on our dependence upon your such benefits are made representations as to existing hazards, if generally available to unintentionally you should fail to disclose all 'employees" who all such hazards at the inception date of are eligible under the your policy, we will not reject coverage plan for such benefits; under this Coverage Part based solely on c. Unemployment insur- • such failure. ance, social security • Includes copyrighted material of Insurance GA 233 02 07 Services Office,Inc.,with its permission. Page 7 of 15 3. Damage to Premises Rented to You e) Settling, cracking, sGI- a. The last Subparagraph of Paragraph pension;g or ex- 2. SECTION I - COVERGE , passion;or COVERAGE A. - BODILY INJURY f) Nesting or infesta- AND PROPERTY DAMAGE, 2. LI- tion, or discharge ABILITY Exclusions is hereby.de- or release of leted and replaced by the following; waste products or secretions, by in- Exclusions c.through q.do not apply sects, birds, ro- to damage by fire, explosion, light- dents or other ning, smoke or soot to premises animals. while rented to you or temporarily occupied by you with permission of (b) Loss caused directly or indi- the owner. rectly by any of the follow- b. The insurance provided under SEC- ing. TION I-COVERAGES, COVERAGE 1) Earthquake, volcanic A. BODILY INJURY AND PROP- eruption, landslide or ERTY DAMAGE LIABILITY applies any other earth move- to "property damage" arising out of ment; water damage to premises that are both rented to and occupied by you. 2) Water that backs,. up or overflows from a (1) As respects Water Damage Le- sewer,drain or;sump; gal Liability, as provided in 3) Water under the Paragraph 3.6.above: ground surface press- The exclusions under SECTION ing on, or flowing or - I - COVERAGES, COVERAGE seeping through; A. BODILY INJURY AND PROPERTY DAMAGE LIABIL- a) Foundations, ITV, 2. Exclusions,other than i. walls, floors or War and the Nuclear Energy paved'-surfaces; Liability Exclusion, are deleted b) Basements, and the following are added: whether paved or This insurance does not apply not;or to: c) Doors, windobs or I (a) 'Property damage": other openings. 1) Assumed in any con- (c) Loss caused by;or resulting tract;or from water that leaks or tlo*s from plumbing, heat- 2) Loss caused by or re- ing, air conditioning, or fire suiting from any of the ,protection systems caused following: by or resulting from freez- a) Wear and tear; ing,unless: b) Rust, corrosion, 1) You did your best to maintain heat in the fungus, decay, building or structure;or deterioration, hid- den or latent de- 2) You drained the fect or any quality equipment and shut off in property that the water supply if the causes it to dam- heat was not main- age or destroy it- tained, self; (d) Loss to or damage to: c) Smog; 1) Plumbing, heating, air d) Mechanical conditioning, fire pro- breakdown in- tection systems, or eluding rupture or other equipment or ap- bursting caused pliances;or by centrifugal force; 2) The interior of any building or structure, or to personal property in the building or structure Includes copyrighted material of Insurance GA 233 02 07 Services Office, Inc.,with its permission, Page 8 of 15 caused by or resulting 5. Medical Payments • from ice,rain, snow, sleet n The Medical Expense Limit of Any One or nwhether driven Person as stated in the Declarations is by wind or nqa' amended to the limit shown in Section B. c. Limit of Insurance Limits of Insure, 5. Medical Pay- The Damage to Premises Rented to meats of thisendarsemAnt. You Limit as shown in the Declare- 6. Voluntary Property Damage and Care, tions is amended as follows: Custody or Control Liability Coverage (2) Paragraph 6. of SECTION III - a. Voluntary Property Damage Cov- UMITS .OF INSURANCE is erage hereby deleted and replaced by the following: We will pay for"property damage" to proPerty of others arising out of op- B. Subject to .5. above, the orations incidental to the insured's Damage "to Premises business when: Rented to You Limit is the pia a is caused b the in- most we will pay under 11) g y COVERAGE A- BODILY sured;or INJURY AND PROPERTY (2) Damage occurs while in the in- DAMAGE LIABILITY, for sured's possession. damages because of "property darri'age" to With your consent, we wig make premises while rented to these payments regardless of fault you-or temporarily occupied by you with permission of b. Carey Custody or Control Liability the owner, arising out of Coverage any one "occurrence" to SECTION I - COVERAGES, COV- which this insurance ap- ERAGE A. BODILY INJURY AND plies. PROPERTY DAMAGE LIABILITY,2. (3) The amount we will pay is lim- Exclusions,j. Damage to Property, ited as described in Section B. Subparagraphs (3), (4) and (5) do Limits of Insurance, 3. Dam- not apply to "property damage" to age to Premises Rented to the property of others descrrb.ed You of this endorsement. therein. 4. Supplementary Payments With respect to the insurance provided by this section of the endorsement, the fol- Under SECTION I - COVERAGE, SUP- lowing additional provisions apply: PLEMENTARY PAYMENTS - COVER- AGES A AND B: a. The Limits of insurance.shown in the Declarations are replaced by the lim- a. Paragraph 2. is replaced by the fol- its designated in Section B. Limits of lowing: Insurance, 6. Voluntary Property Upto the limit shown in Section B. Damage and Care, Custody or Liits of Insurance.4.a. Bail Bonds Control Liability Coverage of this cover- of this endorsement for cost of bail endorsement with respect to bonds required because of accidents age provided by this endorsement or traffic law violations arising out of These limits are inclusive of and rne- the use of any vehicle to which the p addition to the limos beingnr re- placed. The Limits of Insurance • Bodily Injury Liability Coverage ap- shown in Section B. Limits of Insur- plies. We do not have to furnish once, 6. Voluntary Property Dam- these bonds. age and Care, Custody or Control b. Paragraph 4. is replaced by the lot- Uability Coverage of this endorse- lowing: ment fix the most we will pay in any one "occurrence regardless of the All reasonable expenses incurred by number of: the insured at our request to assist us in the investigation or defense of (1) Insureds; the claim or "suit", including actual (2) Claims made or "suits" brought; loss of earnings up to the limit shown or in Section B. Limits of Insurance, 4.b. Loss of Earnings of this- en- (3) Persons or organizations mak- dorsement per day because of time ing claims or bringing "suits". off from work. Includes copyrighted material of Insurance GA 233 02 07 Services Office,Inc.,with its permission. Page 9 of 15 b. Deductible Clause ,A, •4' .. '34`,44-k, k ' • t - � �• ..� , �(1) Our obligation to pay damages x} �{ t '' ,'i on your behalf applies only to the amount of damages for each > * Pr ...m,?..!-,,.' ri~� �3s�1 z, occurrence" which are ith ex- ',"' � 4. _ � " � r cess of the deductible amount �'� ° ",L° .- stated in Section B. Limits of ��°��„� �� - . � Insurance, 6. Voluntary' Prop- erty Damage and Cara; Cue- 1.t., rte, r�b ,f ),ff : 43 v i n tody or Control Liability Coy- i ,d erage of this endorsement. The _ � �` ' ��1 ' ° limits of insurance will not be re- duced by the application of such °`•.,f 1 , `r t 4 deductible amount. ' ‘14:.1.-1.1 �� , �� : � (2} Condition 2.Duties in the Event - • or agreement or'con- of Occurrence,Offense, Claim tractwhere a,G#rtificat® o.,f or Suit,applres to oath claim or insurance showing'that-per- "suit'irrespective of the amount son or o'rgartizatioh -as' an (3} We may pay any part or all of additional insured has been the deductible amount to effect issued, settlement ofy clairx for'su(t” is an insured,provided:• ands upon no cation of the ac- tion taken, you shall promptly (a) The written or oral contract reimburse us for such part of the or agreement is: deductible amount as has been paid by us. 1) Currently in effect, or becomes .effective 7. 160 Day Coverage for Newly Formed or during the policy pe- Acquired Organizations tiod;and SECTION II WHO IS AN INSURED is 2) Executed prior to an amended as follows: "occurrence" or offense Sub ara rah a. of Para h 4. is to which this insurance P P graP would apply; and hereby deleted and replaced by the fol- lowing: (b) They are not specifically Es af- named as an additional in- a. Insurance under this provisionsured under any other pro- forded only until the 180th day after vision of, or endorsement you acquire or form'the organization added to. this Coverage or the end of the policy period, Part. whichever is earners ' tea „ t, :-11;-:#.4• e eV._; (2) Only the following persons or '41 , acyl t ;-� -' organizations are additional .or sureds under this endorsement, JL `$ * ' EfiC A c i1 and insurance coverage pro- ABILIMVO ktwit, T l i t hts o � � � , ,,f ,sic vided to such additional in- cimen eyt £ yea ,Qi" 9f, r sureds is limited as provided i _. k F $, herein: The manager or lessor of a We e dray „eq-recbvgr X4 (a) 9 s tiause e premises leased to you with 1n l pays r#r Item r= l�fy-or image.a itrg Apt: 4)119,9,11011-' whom you have agreed per goingpnratohs Or"yoviior( se un- Paragraph 9.a.(1) above to der' arrittsli contract rgqutrin- sr provide insurance, but only t , wai4er with%-?at,p4r am sr ►rg zafion' with respect to liability aris- and° 'fude •tn acts-cote feted" aris- ing out of the ownership, ' P maintenance or use of that �operat�ns h'azatd �o�a�uerf s�+�r �,ts. ° rri�ay,Wert tv04, curet t� tbbbt.,. part of a premises leased to . #rence ng e toatheinfury or'“doge.< you, subject to the following (or• wt ich We �rnalce. OX1Pbril'10°911r,',,,!” additional exclusions: ye a 4 :.';'--M7-„ � �kThis insurance does not • 1141.141 afie'"4,to se ,N, °0C 4 a I to: • Plt-oftr - les tthe i�stired loll rir$ ,sort, PP Y • = o-ortransfer"tho e rii tis to Ali and tjlp us, 1} Any "occurrence" $: elor telPSeeXigilts 4 which takes place after # -.4r (_g Includes copyrighted material of Insurance GA 233 02 07 Services Office, Inc.,with its permission. Page.10 of 15 you cease to beaten- c) Any physical or ant in that premises. chemical change in the product 2} Structural alterations, made intentionally neer construction or by the vendor; demolition operations performed by nor on be d} Repackaging, un- half of such additional fess unpacked insured. solely ler the pun- pose of inspection, � ;° ?� } v�s.Cr''''''' ' � y ! ` demonstration � � ,k-lift testing, or the 777 a =r--.1...-1 -6,4.-'�� t ;'.�� substitution of :�� rt ,`�4i ��`��- parts under in- dei �" a�;s,,s : - -• , still-0.1mns from the F 1, manufacturer, and ir r� ,, �a. �rF. then repackaged rlv r. r�, '.qua f, a in the anginal ,i�.t ori .,],dry �.: �� container; • f sang9 ,ill i yi 11 , , ,, ,,� e) Any failure to �� r r- ,,... .�) shake such in- sections adjust- �, rrients, tests or p h. ,� ��:,, , , . . seryicing as the „� ,, ��,: r. ,. �.':: y .,a-, .,., vendor has i•3 ��_r t" r �_: agreed to make or e.r I 171 normally under- takes to maksoh in (c) Any person or organization the usual course {referred to below as ven- of business, in dor) with whom you have connection with agreed per Paragraph the distribution or 8.a.(1) above to provide fn- sale of the prod- surance, but only withre- acts, spect to 'bodily injury" or "property damage" arising f) Demonstration, fn- out of"your products"which stallation, soMe- are distributed or sold in the ing or repair op- regular course of the ven- stations, except dot's business, subject to such operations the foiowing additional ex- performed at the elusions: vendor's ,premises 1) The insurance afforded in cona e of "he the sate of the the vendor does not product; apply to: a "Bo in u 01; g) Products which, } Y J rYafter distribution or "property damagesale by you, have for which•the ven- been labeled or dor is obligated to relabeled or used pay damages by as a container, reason of the as- part or ingredient sumption of liabil- of any other thing ity in a contract or or substance by or agreement. This for the vendor. exclusion does not apply to liability for 2) This insurance does damages that the not apply to any in- vendor would sured person or or- have in the ab- ganization: Bence of the con- tract or agree- a) From whom you menta have acquired such products, or b) Any express war- t ingredient, ranty unauthorized part or container, by you; entering into, ac pa copyrighted material of Insurance GA 233 02 07 Services Office, Inc.,with its permission. Page 11 of 15 companying or 2) This insurance does ' containing such not apply to "bodily in- products;or jury:, property dam- ageb When liabilityin- or 'personal and advertising injury" aris- eluded within the ing out of operations "products- performed for the state completed opera- or political subdivision. dons hazard' has been excluded (f) Any person or organization under this Cover- with which you have agreed age Part with re- per Paragraph 9.a.(1) spect to such above to provide insurance, products. but only with respect to Ii- ability arising out of "your (d) Any state or political subdi- Work" performed for that vision with which you have additional insured by you or agreed per Paragraph on your behalf. A person or 9.a.(1) above to provide. in- organizations status as an surance, subject to the fol- insured under this provision lowing additional provision: of this,endorsement contin- ues insurance applies only ues for only the period of with respect to the following time required by the written hazards for which the state contract or agreement, but or political subdivision has in no event-beycfnd the ex- issued : permit in connec- piratiort date of This Cover- tion with premises you own, age Part. If there is no written contract or agree- rent or control and to which this insurance applies: merit,or if no period of time is required by the written 1) The existence, mainte- contract or agreement, .a mance, repair, con- person or organization's struction, erection, or status as an insured under removal of advertising this endorsement ends signs, awnings, cane- 'when your operations for pies, cellar entrances, that insured are completed. coal holes, driveways, (3) Any insurance provided to an manholes, marquees, additional insured designated hoist away openings, under Paragraph 9.a.(2): sidewalk vaults, street banners, or decora- (ai) Subparagraphs (e) and (f) tions and similar expo- does not apply to "bodily sures:or injury"or"property damage" 2) The construction, erec- included within the `prod- tion, or removal of ale- ucts-completed operations vators;or hazard , 3) The ownership, main- (b) Subparagraphs (a), (b), (d), tenance, or use of any (e)and(f)does not apply to • elevators covered by "bodily injury", 'property this insurance. damage" or "personal and advertising injury" arising (e) Any state or political subdi- out of the sole negligence vision with which you have or willful misconduct of the agreed per Paragraph additional insured or their 9.a.(1) above to provide in- agents, "employees" or any surance, subject to the fol- other representative of the lowing provisions: additional insured;or 1) This insurance applies (c) Subparagraph (f) does not only with respect to op- apply to "bodily injury", erations performed by "property damage" or "per- you or on your behalf sonal and advertising injury" for which the state or arising out of: political subdivision has • 1) Defects in design fur- nished by or on behalf Includes copyrighted material of Insurance GA 233 02 07 Services Office,Inc.,with its permission. page 12 of 15 I of the additional in- - I �N A5; -,; stfred;or 5 . , d t : 2) The rendering of, or .. � r r failure to render, any ; f, f l � f * professional architec- �, q w , � ,-„ �.:,fir-,': , tura!, engineering or � ,� x � surveying services, in- cluding: (b) Any insurance provided by this endorsement shall be a) The preparing, primary to other insurance approving or- fail- available to the additional fail- ing to prepare or insured except: approve maps, shop drawings, 1) As otherwise provided opinions, reports, in SECTION IV - surveys, field or COMMERCIAL GEN- ders, change or ERAL LIABILITY ders or drawings CONDITIONS, .Other and specifications; Insurance b. Excess and Insurance or b) Supervisory, in- 2) For any other valid and spectivn, archi- r ttedtible insurance tectural or engi- available to the addi- neering activities. tional insured as an additional insured by -3) "Your work'for Which a attachment of an en- consolidated (wrap-up) dorsement to another insurance,program has insurance policy that is been provided by the written on an excess primecontractor-project basis. In such case, manager or owner of the coverage provided the construction project under this endorse- in which you are in- ment shall also be ex- vol,Yed_ cess. b. Only with regard to insurance pro ' I� 1,.; ',, ter e . . vided to an additional insured desig- •4' ., ��ma=r, .- ,i-- �. Hated under Paragraph 9.a.(2) Sub- ::.---4:'' ' '� ,. p paragraph (f above, SECTION III - i,104''''T.4,,,,;-, .: LIMITS OF INSURANCE is amended ,-„v4,3• , . to include. ., P '-.7.1` . .-• p �Y The limits applicable to the additional insured are those specified in the ` ' 11 ,s s �`' written contract or agreement or in rrr • a •-�, 3� ': the Declarations of this Coverage •1':,&•I' Iy ., ,r`e cit Part, whichever are less. If no limits .; y, are specified in the written contract if= Wra p fi Cbz,t ac r. ,- or agreement,or if there is no written agr � abiveen r contract or agreement, the limits ap- and a ddittonij mitred plicable to the additional insured are s � e ak ovra a those specified in the Declarations of u $ the,ad+ ii°rl$t"rrrsvred: this Coverage Part. The limits of in- ! , a `Bd p ovided:,b+ tlW rr surance are inclusive of and not in race Servit:esf addition to the limits of insurance e h. iena.first shown in the Declarations. *„ . u l � oz SC I5 =�ERCIAi. ' , 'CS"a ,: ' e ' - Rif-AL ABIy "Y CON OPPI edition*dm' d} o*;` ,t a brei aiaeri' "t3 llo” s � �? ;r - � �b. Tctifde �coi��r��e IN (1) G' pc itittt<� ' <insCrrat`�ce'1s ' ,, , mpirati d^"cSpe�rat1i�ons: r eri d tout F f e 6 ''" t or ` (-a) Wti—ere rAu by" yuri . ` c coverage-- for t' _ contract ot`-' r emein, hit ''1" . .yqur 4 rk insurajrce Jsx r?naar; *1 .. iI �� p � � �, ,� �*�cad�yvhere the- Gnicisr�pov' _ ;' . y or,ncgncr�nti !tar ` as r aig`e pr ided,to actif " 4 n £. Includes copyrighted matgrial of Insurance" GA 233 02 07 Services Office, Inc.,with its permission. Page 13 of 15 tionai insured is more re- 11. of this endorsement fix the strictive than was specifi- most we will pay in any one "oc- catty required in that written currence" regardless of the contract or agreement,: the number of: terms of Paragraphs 9.a.(3)(a), 9.a.(3)(b) or 9.b. (a) Insureds; above, or any combination (b) Claims made or "suits" thereof, shall be interpreted brought;or as providing the limits or coverage required by the (c) Persons or organizations terms of the written contract. masking claims or bring or agreement, but only to "suits'. the extent that such limits or coverage is included within (2) Deductible Clause the terms of the Coverage (a) Our obligation to pay darn- Part to which this endorse- ages on your behalf applies merit is attached. If, how- only to the amount of dam- ever, the written contract or ages for each "occurrence" agreement specifie's the, In- which are in excess of the surance Services Office Deductible amount stated in additional insured fora Section B. Limits of Insur- number CG 20 10 but does ance, 11. of this endorse- not specify which edition.er i merit. The limits of insur- species ah edition that encs Will-not be reduced by does not exist, Paragraphs the application of such De- 9.a.(3)(a) and 9.a,(3)(b) or ductible amount • this endorsement shall not apply and Paragraph 9.b. of (b) Condition 2. Duties in the this endorsement shall ap- Event of Occurrence, 01- PIY. 'tense, Claim or Suit, ap- 10. BrpadeneQd Contractual Liability- Work plies to each claim or "suit" irrespective of the amount Within 50' of Railroad Properly It is hereby agreed that Paragraph f.(1)of (c) We may pay any part or all of the deductible amount to Definition 12. "Insured contract" (SEC- TION V-DEFINITIONS)is deleted. effect settlement of any claim or "suit" and, upon 11. Property Damage to Borrowed Equip- notification of the action ment taken, you shall promptly reimburse us for such part a. The following is hereby added to Ex- of the deductible amount as elusion j. Damage to Property of has been paid by us. Paragraph 2., Exclusions of SEC- TION I- COVERAGES, COVERAGE 12. Employees :as Insureds - Specified A. BODILY INJURY AND PROP- Health Care Services ERTY DAMAGE LIABILITY: It is hereby agreed that Paragraph Paragraphs (3) and (4) of this exclu- 2.a.(1Xd) of SECTION II - WHO IS AN sion do not apply to tools or equip- INSURED, does not apply to your "em- ment loaned to you, provided they ployees" who provide professional health are not being used to perform opera- care services on your behalf as duty Ii- tions at the time of loss, censed: b. With respect to the insurance pro- a. Nurses, vided by this section of the en- b. Emergency Medical Technicians;or dorsement, the following additional provisions apply: c. Paramedics, (1) The Limits of insurance shown in the jurisdiction where an "occurrence" in the Declarations are replaced or offense to which this insurance applies by the limits designated in Sec- takes place. tion B. Limits of Insurance, 11. of this endorsement with respect 13. Broadened Notice of Occurrence to coverage provided by this Paragraph a. of Condition 2. Duties in • endorsement. These limits are the Event of Occurrence, Offense, inclusive of and not inced.tioto Claim or Suit (SECTION IV- COMMER- Limitsthe limits being replaced The CIAL GENERAL UABILITY CONDI- of Insurance shown in Section B. Limits of Insurance, Includes copyrighted material of Insurance GA 233 02 07 Services Office,inc.,with its permission. Page 14 of 15 TIONS) is hereby deleted and replaced (2) The names and addresses of by-the following: any injured persons and wit- a. You must see to it that we are noti- nesses;and fied as soon as practicable of an (3) The nature and location of any "occurrence" or an, offense which injury or damage arising out of may result in a claim. 'To the extent the"occurrence or offense. possible,notice,should include: This requirement applies only when (1) Now, when and where the "oc- the'occurrence"or-offense is known currence"or offense took place; to an"authorized representative". • • Includes copyrighted material of Insurance GA 233 02 07 Services Office,Inc.,with its permission. Page 15 of 15 . gate Limit of Insurance, Paragraph 2.b., your behalf at the same location for or the Construction Project General Ag- the same persons or organizations, . gregate Umit of Insurance, Paragraph no matter how often or under how 2.c.applies. many different contracts, will be b. A separate Location General Aggregate deemed to be single construction project. Limit of Insurance,equalto the amount of the General Aggregate Limit shown in the 3. The Products-Completed, Operations Aggre- Declarations,shall apply to each location vats Limit is the most we will pay under COV- owned by,or rented or leased to you and ERAGE A. BODILY INJURY .AND PROP- is the most we will pay for the sum of: ERTY DAMAGE LIABILITY for damages be- cause cif "bodily injury" and "property dam- • (1) Damages under COVERAGE A. age"'included in'the `products-completed op- BODILY INJURY AND PROPERTY orations hazard". DAMAGE UABIUTY, except dam- ages because of "bodily injury" or 4. Subject to 2.a. above, the personal and Ad- "property damage" included in the vertising Injury Limit Is the most we will pay "products-completed operations under COVERAGE B. PERSONAL AND AD- hazard";and VERI1SING INJURY UABIUTY for the sum of all damages because of all "personal and ad- (2) Medical expenses under -COVER- vertising'injury" sustained by any one person AGE C.MEDICAL PAYMENTS, or organization. which can be attributed to operations at 5. Subject to 2.or 3. above, whichever applies, only a single location owned by,oriented the Each Occurrence [Antis the most we will 'or leased to you. pay for the sum of: a. Damages under COVERAGE A. BODILY n,3« n4 „'$ r 'i' 1:4,57,:' =sr„[ 41 r, INJURY AND PROPERTY DAMAGE LI- ABILITY; .I- ABILII ;and , • I"ti,s 11 J1" 1' I I /'_,,:i--t1. 1 11,1' IIID i",-, s i � Gln 1 ?-,j-IniIo,. ,�, I. :1 II I a /II‘I''" b. Medical expenses under COVERAGE C. _ l ,, ,�� . . " MEDICAL PAYMENTS; , 1�I, L ,,.. I[5(6 - � „11 because of all "bodily injury" and "property , i;9 1.,� i,4 N 4,'`f ^•.X. :idamage'arising outof any one"occurrence". e taxi r 3 • 'r ;, • sirI{ ' 6. Subject to 5.above,the Damage to Premises -:; lj i � , _ Rented to You Limit is the most we will pay � � ��a ,,, ��, under COVERAGE A. BODILY INJURY AND PROPERTY DAMAGE UABIUTY for dam- ages because of 'property damage" to any , , - .J '� , �,1 , gone premises, while: rented to you, or in the , � -'fi � .,£ . 4. -.. ',� 7 ;. carie of damage by fire or explosion, while ,� � f ,t, € rented to you or temporarily occupied by you Q' ' ",� " 1. q` with permission of the owner. ray. .;,t#" i t�nE ,.ron tu.' � '3,141•..; • `2-` .s.. - " 7. Subject to S. above, the Medical Expense • Umit is the most we will pay under COVER- d. Only for the purpose of determining which AGE C. MEDICAL PAYMENTS for all medical General Aggregate Limit of Insurance, expenses because of"bodily injury" sustained 2.a.,2.b.,or 2.c.,applies: by any one person. (1) Location means premises involving The Limits of Insurance of this Coverage Part ap- the same or connecting lots, or ply separately to each "coverage term". premises,whose connection is inter- rupted only by a street, roadway, SECTION IV - COMMERCIAL GENERAL LI- waterway or right-of-way of a rail- ABILITY CONDITIONS road. 1. Bankruptcy (2) Construction project means a loca- tion you do not own, rent or lease Bankruptcy or insolvency of the insured or of where ongoing improvements, al- the insured's estate will not relieve us of our terations, installation, demolition or obligations under this Coverage Part maintenance work is performed by 2. Duties in the Event of Occurrence,Offense, you or on your behalf. All connected Claim or Suit ongoing improvements, alterations, installation, demolition or mainte- a. You must see to it that we are notified as nance work performed by you or on soon as practicable of an "occurrence" or Includes copyrighted material of Insurance GA 101 12 04 Services Office, Inc.,with its permission. Page 13 of 22 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED BY CONTRACT This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM This endorsement changes the policy effective on the moeption date of the popsy mess another date is tndi• sated Wow Endorsement Effective 02/02/2016 Paley Number. EPP0178710 Named 3lsured: ARCTIC LIGHTING&ELECTRIC LLC Countersigned by: TAuthorized RepresentatIVe; 1641t3r4-- With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply usess modified by the endorsement. SECTION 1 - LIABILITY COVERAGE, A. Cover- age, overage, L Who is an insured Is amended to Include as an Insured any person or organization with which you have agreed in a valid written contract to provide Insurance as is afforded by ths policy. This provision is limited to the scope of the valid written contract This provision does not appy unless the valid written contract has been executed prior to the "bodily injury"or"property damage". • AA4171 11 05 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BLANKET WAIVER OFSUBROGATION -AUTO This endorsement modifies insurance provided under the following: BUSINESSAUTO COVERAGE FORM This endorsementchanges the paltry effective on the inception date of the policy unless another date Is Indi- cated below. Endorsement Effective: 02/02/2016 Policy Number: EPP0178710 • Named insured: ARCTIC LIGHTING&ELECTRIC,LLC Countersigned by: om! .. (Authorized Representl#tiv- - With respect to coverage pro ded by this endorsement the provisions of the Coverage Form apply unless modified by the endorsement. 1. Blanket Waiver of Subrogation of payments we make for "bodily injury" or AUTO CONDI— 'property damage' arising out of the operation SECTION N BUSINESS- I— of a covered 'auto' when you have assumed TIONS,A. Loss Conditions, 5. Transfer Rights of RecoveryAgainst Others to Us is liability for such bodily injury" or 'property 9 damage' under an "insured contract", pro- amended by the addition of the following: vided the 'bodily injury" or"property damage" We waive any right of recovery we may have occurs subsequent to the execution of the in- against any person or organization because sured contract'. • AA4172 09 09 THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY, PRIMARY AND NONCONTRIBUTORY INSURANCE This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM This endorsement changes the policy effective on the inception date of the policy unless another date is Indi- cated below. Endorsement Effective: 02/02/2016 Policy Number. EPP0178710 Named Insured: ARCTIC LIGHTING&ELECTRIC,LLC Countersigned by. /IF"` (Authorized Representative) With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by the endorsement. 1. Noncontributory Insurance SECTION IV - BUSINESS AUTO CONDI- TIONS, B. General Conditions, 5. Other In- surance is replaced by the following: c. Regardless of the provisions of Para- graph a.above, this Coverage Form's Li- ability Coverage is primary and we will not seek contribution from any other in- surance for any liability assumed under an "Insured contract"that requires liability to be assumed on a primary noncon- tributory basis. AA 417411 05 Bond No. 21146359 Document A312TM — 2010 Conforms with The American Institute of Architects AIA Document 312 Performance Bond CONTRACTOR: SURETY: (Name,legal status and address) (Name,legal status and principal place of business) Arctic Lighting & Electric, LLC The Guarantee Company of North America USA One Towne Square, Suite 1470 This document has important legal 2307 N Woodruff Southfield, MI 48076 consequences.Consultation with Spokane, WA 99206 Mailing Address for Notices an attorney Is encouraged with respect to Its completion or One Towne Square, Suite 1470 modification. OWNER: Southfield, MI 48076 . Any singular reference to (Name,legal status and address) Contractor,Surety,Owner or other party shall be considered City of Spokane Valley plural where applicable. 10210 E Sprague Avenue Spokane Valley, WA 99206 CONSTRUCTION CONTRACT Date: November 17, 2017 Amount:$39,661.95 Thirty Nine Thousand Six Hundred Sixty One Dollars and 95/100 Description: (Name and location) Heat Trace Project BOND Date: November 20, 2017 (Not earlier than Construction Contract Date) Amount:$39,661.95 Thirty Nine Thousand Six Hundred Sixty One Dollars and 95/100 Modifications to this Bond: X❑ None Sec Section 16 CONTRACTOR AS PRINCIPAL SURETY Company: (Corporate Seal) Company: (CorpomfeR�•r '. Arctic Lighting & Electric, LLC The Guarantee Company of North America Signature. / Signature: Wta.,Lei . On.?/)°,12' o ='1`I''1HV✓ Name Marla J. Da��port Name BIC( �`"` and Title: pk,,,s eJT" and Title: Attorney-in-Fact • (Any additional signatures appear on the last page of this Performance Bond.) (FOR INFORMATION ONLY—Name,address and telephone) AGENT or BROKER: OWNER'S REPRESENTATIVE: PayneWest Insurance, Inc. (Architect,Engineer or other party:) 501 North Riverpoint Boulevard, Suite 403 Spokane, WA 99202 406-457-2124 S-1852/AS 8/10 • §.1 The Contractor and Surety,jointly and severally,bind themselves,their heirs,executors,administrators,successors and assigns to the Owner for the performance of the Construction Contract,which is incorporated herein by reference. §2 If the Contractor performs the Construction Contract,the Surety and the Contractor shall have no obligation under this Bond,except when applicable to participate in a conference as provided in Section 3. §3 If there is no Owner Default under the Construction Contract,the Surety's obligation under this Bond shall arise after .1 the Owner first provides notice to the Contractor and the Surety that the Owner is considering declaring a Contractor Default.Such notice shall indicate whether the Owner is requesting a conference among the Owner,Contractor and Surety to discuss the Contractor's performance.If the Owner does not request a conference,the Surety may,within five(5)business days after receipt of the Owner's notice,request such a conference.If the Surety timely requests a conference,the Owner shall attend.Unless the Owner agrees otherwise,any conference requested under this Section 3.1 shall be held within ten(10)business days of the Surety's receipt of the Owner's notice.If the Owner,the Contractor and the Surety agree,the Contractor shall be allowed a reasonable time to perform the Construction Contract,but such an agreement shall not waive the Owner's right,if any,subsequently to declare a Contractor Default; .2 the Owner declares a Contractor Default,terminates the Construction Contract and notifies the Surety;and .3 the Owner has agreed to pay the Balance of the Contract Price in accordance with the terms of the Construction Contract to the Surety or to a contractor selected to perform the Construction Contract. §4 Failure on the part of the Owner to comply with the notice requirement in Section 3.1 shall not constitute a failure to comply with a condition precedent to the Surety's obligations,or release the Surety from its obligations,except to the extent the Surety demonstrates actual prejudice. §5 When the Owner has satisfied the conditions of Section 3,the Surety shall promptly and at the Surety's expense take one of the following actions: §6.1 Arrange for the Contractor,with the consent of the Owner,to perform and complete the Construction Contract; §6.2 Undertake to perform and complete the Construction Contract itself,through its agents or independent contractors; §6.3 Obtain bids or negotiated proposals from qualified contractors acceptable to the Owner for a contract for performance and completion of the Construction Contract,arrange for a contract to be prepared for execution by the Owner and a contractor selected with the Owner's concurrence,to be secured with performance and payment bonds executed by a qualified surety equivalent to the bonds issued on the Construction Contract,and pay to the Owner the amount of damages as described in Section 7 in excess of the Balance of the Contract Price incurred by the Owner as a result of the Contractor Default;or §5.4 Waive its right to perform and complete,arrange for completion,or obtain a new contractor and with reasonable promptness under the circumstances: .1 After investigation,determine the amount for which it may be liable to the Owner and,as soon as practicable after the amount is determined,make payment to the Owner;or .2 Deny liability in whole or in part and notify the Owner,citing the reasons for denial. §6 If the Surety does not proceed as provided in Section 5 with reasonable promptness,the Surety shall be deemed to be in default on this Bond seven days after receipt of an additional written notice from the Owner to the Surety demanding that the Surety perform its obligations under this Bond,and the Owner shall be entitled to enforce any remedy available to the Owner.If the Surety proceeds as provided in Section 5.4,and the Owner refuses the payment or the Surety has denied liability,in whole or in part,without further notice the Owner shall be entitled to enforce any remedy available to the Owner. S-1852/AS 8/10 §7Ifthe Surety elects to act under Section 5.1,5.2 or 5.3,then the responsibilities of the Surety to the Owner shall not be greater than those of the Contractor under the Construction Contract,and the responsibilities of the Owner to the Surety shall not be greater than those of the Owner under the Construction Contract.Subject to the commitment by the Owner to pay the Balance of the Contract Price,the Surety is obligated,without duplication,for .1 the responsibilities of the Contractor for correction of defective work and completion of the.Construction Contract; .2 additional legal,design professional and delay costs resulting from the Contractor's Default,and resulting from the actions or failure to act of the Surety under Section 5;and .3 •liquidated damages,or if no liquidated damages are specified in the Construction Contract,actual damages caused by delayed performance or non-performance of the Contractor. §8 If the Surety elects to act under Section 5.1,5.3 or 5.4,the Surety's liability is limited to the amount of this Bond. §9 The Surety shall not be liable to the Owner or others for obligations of the Contractor that arc unrelated to the Construction Contract,and the Balance of the Contract Price shall not be reduced or set off on account of any such unrelated obligations.No right of action shall accrue on this Bond to any person or entity other than the Owner or its heirs,executors,administrators,successors and assigns. §10 The Surety hereby waives notice of any change,including changes of time,to the Construction Contract or to related subcontracts,purchase orders and other obligations. §11 Any proceeding,legal or equitable,under this Bond may be instituted in any court of competent jurisdiction in the location in which the work or part of the work is located and shall be instituted within two years after a declaration of Contractor Default or within two years after the Contractor ceased working or within two years after the Surety refuses or fails to perform its obligations under this Bond,whichever occurs first.If the provisions of this Paragraph are void or prohibited by law,the minimum period of limitation available to sureties as a defense in the jurisdiction of the suit shall be applicable. §12 Notice to the Surety,the Owner or the Contractor shall be mailed or delivered to the address shown on the page on which their signature appears. §13 When this Bond has been furnished to comply with a statutory or other legal requirement in the location where the construction was to be performed,any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted herefrom and provisions conforming to such statutory or other legal requirement shall be deemed incorporated herein.When so furnished,the intent is that this Bond shall be construed as a statutory bond and not as a common lawbond. • §14 Definitions §14.1 Balance of the Contract Price.The total amount payable by the Owner to the Contractor under the Construction Contract after all proper adjustments have been made,including allowance to the Contractor of any amounts received or to be received by the Owner in settlement of insurance or other claims for damages to which the Contractor is entitled,reduced by all valid and proper payments made to or on behalf of the Contractor under the Construction Contract. §14.2 Construction Contract.The agreement between the Owner and Contractor identified on the cover page,including all Contract Documents and changes made to the agreement and the Contract Documents. §14.3 Contractor Default Failure of the Contractor,which has not been remedied or waived,to perform or otherwise to comply with a material term of the Construction Contract. §14.4 Owner Default.Failure of the Owner,which has not been remedied or waived,to pay the Contractor as required under the Construction Contract or to perform and complete or comply with the other material terms of the Construction Contract. §14.6 Contract Documents.All the documents that comprise the agreement between the Owner and Contractor. §15 If this Bond is issued for an agreement between a Contractor and subcontractor,the term Contractor in this Bond shall be deemed to be Subcontractor and the term Owner shall be deemed to be Contractor. S-1852/AS 8/10 §16 Modifications to this bond are as follows: (Space is provided below for additional signatures of added parties,other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL. SURETY Company: (Corporate Seal) Company: (Corporate Seal) Signature: Signature: Name and Title: Name and Title: Address Address S-1852/AS 8/10 Bond No. 21146359 Document A312TM — 2010 Conforms with The American Institute of Architects AIA Document 312 Payment Bond CONTRACTOR: SURETY: (Name,legal status and address) (Name,legal status and principal place of business) Arctic Lighting & Electric, LLC The Guarantee Company of North America USA 2307 N Woodruff One Towne Square, Suite 1470 This document has important legal Southfield, MI 48076 consequences.Consultation with Spokane, WA 99206 Mailing Address for Notices an attorney Is encouraged with respect to Its completion or One Towne Square, Suite 1470 modification. OWNER: Southfield, MI 48076 Any singular reference to (Name,legal status and address) Contractor,Surety,Owner or other party shall be considered City of Spokane Valley plural where applicable. 10210 E Sprague Avenue Spokane Valley, WA 99206 CONSTRUCTION CONTRACT Date: November 17, 2017 Amount:$39,661.95 Thirty Nine Thousand Six Hundred Sixty One Dollars and 95/100 Description: (Name and location) Heat Trace Project BOND Date: November 20, 2017 (Not earlier than Construction Contract Date) Amount:$39,661.95 Thirty Nine Thousand Six Hundred Sixty One Dollars and 95/100 Modifications to this Bond: x0 None ❑ See Section 18 CONTRACTOR AS PRINCIPAL SURETY r;4•. Company: (Corporate Seal) Company: (Corporate Seal)' ? Arctic Lighting & Electric, LLC The Guarantee Company of North America USA's Signature: • i3C250r" Davert Name 'BA I '/ ' "P74") Name Marla J. _'^-`� .��=`_ and Title: S Ip 1 •r- and Title: Attorney-in-Fact yt 1 (Any additional signatures appear on the last page of this Payment Bond) (FOR INFORMATION ONLY—Name,address and telephone) AGENT or BROKER: OWNER'S REPRESENTATIVE: PayneWest Insurance, Inc. (Architect,Engineer or other parry:) 501 North Riverpoint Boulevard, Suite 403 Spokane, WA 99202 406-457-2124 5-2149/AS 8110 §1 The Contractor and Surety,jointly and severally,bind themselves,their heirs,executors,administrators,successors and assigns to the Owner to pay for labor,materials and equipment furnished for use in the performance of the Construction Contract,which is incorporated herein by reference, subject to the following terms. §2 If the Contractor promptly makes payment of all sums due to Claimants,and defends,indemnifies and holds harmless the Owner from claims, demands,liens or suits by any person or entity seeking payment for labor,materials or equipment furnished for use in the performance of the Construction Contract,thcn the Surety and the Contractor shall have no obligation under this Bond. §3 If there is no Owner Default under the Construction Contract,the Surety's obligation to the Owner under this Bond shall arise after the Owner has promptly notified the Contractor and the Surety(at the address described in Section 13)of claims,demands,liens or suits against the Owner or the Owner's property by any person or entity seeking payment for labor,materials or equipment furnished for use in the performance of the Construction Contract and tendered defense of such claims,demands,liens or suits to the Contractor and the Surety. §4 When the Owner has satisfied the conditions in Section 3,the Surety shall promptly and at the Surety's expense defend,indemnify and hold harmless the Owner against a duly tendered claim,demand,lien or suit. §5 The Surety's obligations to a Claimant under this Bond shall arise after the following: §5.1 Claimants,who do not have a direct contract with the Contractor, .1 have furnished a written notice of non-payment to the Contractor,stating with substantial accuracy the amount claimed and the name of the party to whom the materials were,or equipment was,furnished or supplied or for whom the labor was done or performed,within ninety(90)days after having last performed labor or last furnished materials or equipment included in the Claim; and • .2 have sent a Claim to the Surety(at the address described in Section 13). §5.2 Claimants,who arc employed by or have a direct contract with the Contractor,have sent a Claim to the Surety(at the address described in Section 13). §6 If a notice of non-payment required by Section 5.1.1 is given by the Owner to the Contractor,that is sufficient to satisfy a Claimant's obligation to furnish a written notice of non-payment under Section 5.1.1. §7 When a Claimant has satisfied the conditions of Sections 5.1 or 5.2,whichever is applicable,the Surety shall promptly and at the Surety's expense take the following actions: §7.1 Send an answer to the Claimant,with a copy to the Owner,within sixty(60)days after receipt of the Claim,stating the amounts that are undisputed and the basis for challenging any amounts that are disputed;and §7.2 Pay or arrange for payment of any undisputed amounts. §7.3 The Surety's failure to discharge its obligations under Section 7.1 or Section 7.2 shall not be deemed to constitute a waiver of defenses the Surety or Contractor may have or acquire as to a Claim,except as to undisputed amounts for which the Surety and Claimant have reached agreement. If,however,the Surety fails to discharge its obligations under Section 7.1 or Section 7.2,the Surety shall indemnify the Claimant for the reasonable attorney's fees the Claimant incurs thereafter to recover any sums found to be due and owing to the Claimant. §8 The Surety's total obligation shall not exceed the amount of this Bond,plus the amount of reasonable attorney's fees provided under Section 7.3, and the amount of this Bond shall be credited for any payments made in good faith by the Surety. §9 Amounts owed by the Owner to the Contractor under the Construction Contract shall be used for the performance of the Construction Contract and to satisfy claims,if any,under any construction performance bond.By the Contractor furnishing and the Owner accepting this Bond,they agree that all funds earned by the Contractor in the performance of the Construction Contract are dedicated to satisfy obligations of the Contractor and Surety under this Bond,subject to the Owner's priority to use the funds for the completion of the work. S-2149/AS 8/10 �4 ` §10 The Surety shall not be liable to the Owner,Claimants or others for obligations of the Contractor that arc unrelated to the Construction Contract. The Owner shall not be liable for the payment of any costs or expenses of any Claimant under this Bond,and shall have under this Bond no obligation to make payments to,or give notice on behalf of,Claimants or otherwise have any obligations to Claimants under this Bond. §11 The Surety hereby waives notice of any change,including changes of time,to the Construction Contract or to related subcontracts,purchase orders and other obligations. §12 No suit or action shall be commenced by a Claimant under this Bond other than in a court of coinpetent jurisdiction in the state in which the project that is the subject of the Construction Contract is located or after the expiration of one year from the date(1)on which the Claimant sent a Claim to the Surety pursuant to Section 5.1.2 or 5.2,or(2)on which the last labor or service was performed by anyone or the last materials or equipment were furnished by anyone under the Construction Contract,whichever of(1)or(2)first occurs.If the provisions of this Paragraph arc void or prohibited by law,the minimum period of limitation available to sureties as a defense in the jurisdiction of the suit shall be applicable. §13 Notice and Claims to the Surety,the Owner or the Contractor shall be mailed or delivered to the address shown on the page on which their signature appears.Actual receipt of notice or Claims,however accomplished,shall be sufficient compliance as of the date received. §14 When this Bond has been furnished to comply with a statutory or other legal requirement in the location where the construction was to be performed,any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted herefrom and provisions conforming to such statutory or other legal requirement shall be deemed incorporated herein.When so furnished,the intent is that this Bond shall be construed as a statutory bond and not as a common law bond. §15 Upon request by any person or entity appearing to be a potential beneficiary of.this Bond,the Contractor and Owner shall promptly furnish a copy of this Bond or shall permit a copy to be made. §16 Definitions §16.1 Claim.A written statement by the Claimant including at a minimum: .1 the name of the Claimant; .2 the name of the person for whom the labor was done,or materials or equipment furnished; .3 a copy of the agreement or purchase order pursuant'to which labor,materials or equipment was furnished for use in the performance of the Construction Contract; .4 a brief description of the labor,materials or equipment furnished; .5 the date on which the Claimant last performed labor or last furnished materials or equipment for use in the performance of the Construction Contract; .6 the total amount earned by the Claimant for labor,materials or equipment furnished as of the date of the Claim; .7 the total amount of previous payments received by the Claimant;and .8 the total amount due and unpaid to the Claimant for labor,materials or equipment furnished as of the date of the Claim. §16.2 Claimant.An individual or entity having a direct contract with the Contractor or with a subcontractor of the Contractor to furnish labor, materials or equipment for use in the performance of the Construction Contract.The term Claimant also includes any individual or entity that has rightfully asserted a claim under an applicable mechanic's lien or similar statute against the real property upon which the Project is located.The intent of this Bond shall be to include without limitation in the terms"labor,materials or equipment"that part of water,gas,power,light,heat,oil,gasoline, telephone service or rental equipment used in the Construction Contract,architectural and engineering services required for performance of the work of the Contractor and the Contractor's subcontractors,and all other items for which a mechanic's lien may be asserted in the jurisdiction where the labor,materials or equipment were furnished. §16.3 Construction Contract.The agreement between the Owner and Contractor identified on the cover page,including all Contract Documents and all changes made to the agreement and the Contract Documents. S-2149/AS 8110 §16.4 Owner Default.Failure of the Owner,which has not been remedied or waived,to pay the Contractor as required under the Construction Contract or to perform and complete or comply with the other material terms of the Construction Contract. §16.6 Contract Documents.All the documents that comprise the agreement between the Owner and Contractor. §17 If this Bond is issued for an agreement between a Contractor and subcontractor,the term Contractor in this Bond shall be deemed to be Subcontractor and the term Owner shall be deemed to be Contractor. §18 Modifications to this bond are as follows: (Space is provided below for additional signatures of added parties,other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL SURETY Company: (Corporate Seal) Company: (Corporate Seal) Signature: Signature: Name and Title: Name and Title: Address Address S-2149/AS 8110 •.S • THE ® The Guarantee Company of North America USA GUARANTEE® Southfield, Michigan POWER OF ATTORNEY NOW ALL BY THESE PRESENTS:That THE GUARANTEE COMPANY OF NORTH AMERICA USA,a corporation organized and existing under the laws of the State of Michigan,having its principal office in Southfield,Michigan,does hereby constitute and appoint James E.Majeskey II, Judith A.Rapp, Judith C.Kaiser-Smith,Jaclyn R.Kruse,Thomas V.A.Davis,Marla J.Davenport, Shanalee E.Steele,Cynthia L.Heiney PayneWest Insurance,Inc. its true and lawful attomey(s)-in-fact to execute,seal and deliver for and on its behalf as surety,any and all bonds and undertakings,contracts of indemnity and other writings obligatory in the nature thereof,which are or may be allowed,required or permitted by law,statute,rule,regulation,contract or otherwise. The execution of such instrument(s)in pursuance of these presents,shall be as binding upon THE GUARANTEE COMPANY OF NORTH AMERICA USA as fully and amply,to all intents and purposes,as if the same had been duly executed and acknowledged by its regularly elected officers at the principal office. The Power of Attorney is executed and may be certified so,and may be revoked,pursuant to and by authority of Article IX,Section 9.03 of the By-Laws adopted by the Board of Directors of THE GUARANTEE COMPANY OF NORTH AMERICA USA at a meeting held on the 314 day of December,2003. The President,or any Vice President,acting with any Secretary or Assistant Secretary,shall have power and authority: 1. To appoint Attomey(s)-in-fact,and to authorize them to execute on behalf of the Company,and attach the Seal of the Company thereto,bonds and undertakings,contracts of indemnity and other writings obligatory in the nature thereof and 2. To revoke,at any time,any such Attorney-in-fact and revoke the authority given,except as provided below 3. In connection with obligations in favor of the Florida Department of Transportation only,it is agreed that the power and authority hereby given to the Attorney-in-Fact includes any and all consents for the release of retained percentages and/or final estimates on engineering and construction contracts required by the State of Florida Department of Transportation. It is fully understood that consenting to the State of Florida Department of Transportation making payment of the final estimate to the Contractor and/or its assignee,shall not relieve this surety company of any of its obligations under its bond. 4. In connection with obligations in favor of the Kentucky Department of Highways only, it is agreed that the power and authority hereby given to the Attorney-in-Fact cannot be modified or revoked unless prior written personal notice of such intent has been given to the Commissioner—Department of Highways of the Commonwealth of Kentucky at least thirty(30)days prior to the modification or revocation. Further,this Power of Attorney is signed and sealed by facsimile pursuant to resolution of the Board of Directors of the Company adopted at a meeting duty called and held on the 6th day of December 2011,of which the following is a true excerpt: RESOLVED that the signature of any authorized officer and the seal of the Company may be affixed by facsimile to any Power of Attorney or certification thereof authorizing the execution and delivery of any bond, undertaking, contracts of indemnity and other writings obligatory in the nature thereof, and such signature and seal when so used shall have the same force and effect as though manually affixed. IN WITNESS WHEREOF,THE GUARANTEE COMPANY OF NORTH AMERICA USA has caused this instrument to be signed and "gE its corporate seal to be affixed by its authorized officer,this 2ie day of October,2015. ret (?) THE GUARANTEE COMPANY OF NORTH AMERICA USA egigi'zAir STATE OF MICHIGAN Stephen C.Ruschak,President&Chief Operating Officer Randall Musselman,Secretary County of Oakland On this 2nd day of October,2015 before me came the individuals who executed the preceding instrument,to me personally known,and being by me duly sworn, said that each is the herein described and authorized officer of The Guarantee Company of North America USA; that the seal affixed to said instrument is the Corporate Seal of said Company;that the Corporate Seal and each signature were duly affixed by order of the Board of Directors of said Company. =ns , Cynthia A. Takai IN WITNESS WHEREOF,I have hereunto set my hand at The Guarantee Notary Public,State of Michigan Company of North America USA offices the day and year above written. County of Oakland /! /1 My Commission Expires February 27,2018 �/ _i V`. � -e_. Acting in Oakland County I,Randall Musselman,Secretary of THE GUARANTEE COMPANY.OF NORTH AMERICA USA,do hereby certify that the above and foregoing is a true and correct copy of a Power of Attorney executed by THE GUARANTEE COMPANY OF NORTH AMERICA USA,which is still in full force and effect. "'neecN IN WITNESS WHEREOF,I have thereunto jetjy hsalidttaPped t}FB seal of said Company thiseJ day of fr , al/7 igt - , 9. rS Arm tl,.i -"'".'/" Randall Musselman,Secretary