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CITY HALL FIRST FLOOR REMODEL HVAC CONTRACT THIS CITY HALL FIRST FLOOR REMODEL, HVAC CONTRACT (hereinafter "CONTRACT'), dated this d?3b day of January, 2003 between CITY of Moscow, Idaho, a municipal corporation of the State of Idaho, 206 East Third Street, Moscow, Idaho, 83843 (hereinafter "CITY"), and Three-H Mechanical, Inc., an Idaho Corporation, 2705 Howard Street, Coeur d'Alene, Idaho, 83815 (hereinafter"CONTRACTOR"). WITNESSETH: WHEREAS, pursuant to the invitation of CITY, extended through an officially published "Invitation to Bid", CONTRACTOR did, in accordance therewith file with CITY a proposal containing an offer which was invited by said notice; and WHEREAS, CITY has determined that said offer was the lowest and best submitted: NOW THEREFORE, the parties to this CONTRACT, in consideration of the mutual covenants and stipulations set out, agree as follows: ARTICLE 1. CONTRACT DOCUMENTS The CONTRACT Documents which comprise the entire Agreement between CITY and CONTRACTOR concerning the work to be performed are this CONTRACT, pages one through four and the following: 1. Invitation to Bid; 2. CITY of Moscow Bidding/CONTRACT Conditions and Specifications. 3. A document entitled Division 15-Mechanical consisting of two pages ; 4. Mechanical CONTRACT Specifications; 5. Section 15030 Additions or Remodeled Facilities consisting of eight pages; 6. CITY of Moscow CITY Hall First Floor HVAC Systems Bid Submittal form; 7. Design, Build Plan which shall be delivered to CITY within thirty (30) days of the notice to proceed; 8. Change Orders which may be delivered or issued after the effective date of this CONTRACT. There are no CONTRACT Documents other than those listed in Article 1. This CONTRACT may only be amended by change order as provided in the General Conditions. ARTICLE 2. WORK CITY HALL FiRST FLOOR REMODEL HVAC CONTRACT PAGE1 OF6 ---PAGE BREAK--- CONTRACTOR shall complete the entire work as specified. indicated and required under the CONTRACT Documents for CITY of Moscow project titled CITY Hall First Floor HVAC Systems (Remodel) (hereinafter "PROJECT"). ARTICLE 3. CONTRACT TIME I S UBS TANTIAL COMPLETION The work to be performed pursuant to this CONTRACT shall be substantially complete on or before March 18, 2003, unless adjustment of the CONTRACT time is made in accordance with the provisions of the CONTRACT Documents. CONTRACTOR shall begin work in conformance with the CONTRACT Documents and shall complete the work prior to the date of completion. ARTICLE4. CONTRACT S UM CITY shall pay CONTRACTOR for completion of the work in accordance with the CONTRACT Documents in current funds in an amount not to exceed Forty Thousand Nine Hundred Eighty and No/One Hundredths Dollars ($40,980.00). Said CONTRACT Sum shall be paid in accordance with the CONTRACT Documents. ARTICLE 5. INDEPENDENT CONTRACTOR The parties warrant by their signature that no employer-employee relationship is established between CONTRACTOR and CITY by the terms of this CONTRACT. It is understood by the parties hereto that CONTRACTOR is an independent contractor and as such neither it nor its employees, agents, representatives or subcontractors, if any, are employees of CITY for purposes of tax, retirement system, or social security (FICA) withholding. ARTICLE 6. S COPE OF WORK CONTRACTOR shall perform all work required by the CONTRACT Documents. All such work shall be completed in accordance with the plans and specifications established for this Project. Scope of Work shall include: 1. Provide shop drawing submittal showing equipment locations and identification, duct and piping routing, and grille and register layout to CITY prior to installation; 2. Design and installation of two individual split heating I cooling systems, with associated flues, piping, dueling, economizers and controls; 3. Design and installation of boiler and radiant panel systems with associated flue liner in existing chimney, piping, valves and controls; 4. Minor demolition of existing natural gas piping to allow connection to new systems; 5. New boiler system will be hooked into existing RP valve currently plumbed into existing boiler; C!TY HALL FIRST FLOOR REMODEL HVAC CONTRACT PAGE20F6 ---PAGE BREAK--- 6. Coordinate external cleaning of ductwork with CITY staff prior to installation. ARTICLE 7. All work shall meet or exceed the requirement of the Uniform Mechanical Code, Uniform Plumbing Code, Uniform Fire Code, ASME Boiler and Pressure Vessel Codes, ASME CSD-1, ASHRAE Standards, other Codes and standard trade practices as adopted by the local authroity having jurisdiction. All work shall meet or exceed bid specifications supplied by CITY. CONTRACTOR shall obtain and pay for all permits and fees for inspection of this work. ARTICLE 8. DOCUMENTS , MATERIALS AND WORK REQUIRED AT CONCLUS ION OF PROJECT At conclusion of Project, CITY shall be provided: 1 Parts/materials list showing item description, manufacturer, model size, color, etc.; 2. Reproducible as-built drawings; 3. Two sets of filters for each unit (ANSI UL Listed, Class Z) 4. Three copies of O&M manuals neatly bound. ARTICLE 9. WARRANTIES All units shall be warranted in writing for one year after the date of acceptance, except that heat exchangers shall carry a twenty (20) year warranty and microprocessor control, igniters and inducer motors shall carry a three year warranty. ARTICLE 10. ACCEPTANCE OF S YS TEMS AND PROJECT When acceptance tests and inspections for the PROJECT have been completed, CITY will provide CONTRACTOR with a notice informing CONTRACTOR that CITY accepts the PROJECT or does not accept the PROJECT. Notification of acceptance will also detail deficiencies found, which may be major and a cause for non-acceptance, or which may be minor and suitable for repair after the PROJECT have been accepted. Notification will be sent by CITY to CONTRACTOR within ten (10) working days of receipt of the PROJECT. ARTICLE 11. HOLD HARMLES S /INDEMNIF ICATION In addition to other rights granted CITY by the CONTRACT Documents, CONTRACTOR shall indemnify and save harmless CITY, its officers and employees, from all suits, actions, or daims CiTY HALl FiRST FLOOR REMODEL HVAC CONTRACT PAGE30F6 ---PAGE BREAK--- of any character brought because of any injuries or damages received or sustained by any person, persons, or property on account of the operations of CONTRACTOR or his subcontractors; or on account of or in consequence of any neglect in safeguarding the work; or because of any act or omission, neglect, or misconduct of CONTRACTOR or his subcontractors; or because of any claims or amounts recovered from any infringements of patent, trademark or copyright: or from any claims or amounts arising or recovered under the Workmen's Compensation Act or any other law, ordinance, order or decree. ARTICLE 12. CONF LICT OF INTERES T CONTRACTOR covenants that it presently has no interest and will not acquire any interest, direct, or indirect, in the Project which would conflict in any manner or degree with the performanca of its services hereunder. CONTRACTOR further covenants that, in performing this CONTRACT, it will employ no person who has any such interest. Should any conflict of interest arise during the performance of this CONTRACT, CONTRACTOR shall immediately disclose such conflict to CITY. ARTICLE 13. ENTIRE AGREEMENT, MODIF ICATION AND AS S IGNABILITY This CONTRACT and the exhibits hereto contain the entire agreement between the parties, and no statements, promises, or inducements made by either party, or agents of either party are valid or binding unless contained herein. This CONTRACT may not be enlarged, modified or altered except upon written agreement signed by the parties hereto. CONTRACTOR may not subcontract or assign its rights (including the right to compensation) or duties arising hereunder other than as contemplated by the CONTRACT Documents, without the prior written consent and express authorization of CITY. ARTICLE 14. ADHERENCE TO LAW REQUIRED All applicable local, State and Federal statutes and regulations are hereby made a part of this CONTRACT and shall be adhered to at all times. Violation of any of these statutes or regulations by CONTRACTOR shall be deemed material and shall subject CONTRACTOR to termination of this CONTRACT for cause. No pleas of misunderstanding or ignorance on the part of CONTRACTOR will in any way serve to modify the provisions of this requirement. CONTRACTOR and his surety shall indemnify and save harmless CITY and its employees, agents and representatives against any claim or liability arising from or based on the violation of any such laws, codes, ordinances, or regulations, whether by himself, his employees, or his subcontractors. CiTY HALL FLOOR REM()OEL HVAC CONTRF.CT ARTICLE 15. LEGAL F EES PAGE40F6 ---PAGE BREAK--- In the event either party incurs legal expenses to enforce the terms and conditions of this CONTRACT, the prevailing party is entitled to recover reasonable attorney's fees and other costs and expenses, whether the same are incurred with or without suit ARTICLE 16. S PECIAL WARRANTY CONTRACTOR warrants that nothing of monetary value has been given, promised or implied as remuneration or inducement to enter into this CONTRACT. CONTRACTOR further declares that no improper personal, political or social activities have been used or attempted in an effort to influence the outcome of the competition, discussion, or negotiation leading to the award of this CONTRACT. Any such activity by CONTRACTOR shall make this CONTRACT null and void. ARTICLE 17. COMMUNICATIONS Such communications as are required by this CONTRACT shall be satisfied by mailing or by personal delivery to the parties at the following address: CONTRACTOR Three-H Mechanical, Inc. 2705 Howard Street Coeur d'Alene, Idaho 83815 CITY CITY of Moscow P 0 Box 9203 Moscow, Idaho 83843 ARTICLE 18. EXECUTION IN WITNESS WHEREOF, said CONTRACTOR and CITY have caused this CONTRACT to be executed on the day and year first above written. Three-H Mechanical, Inc. Secretary C1TY HALL F;RST FLOOR REMODEL HVAC CONTRACT PAGE 50F 6 ---PAGE BREAK--- ACKNOWLEDGMENT STATE OF IDAHO ) ) ss. County of Kootenai ) On this day of -Muu.r}::J_ . 2003, before me, a Notary Public in and for said State, appeared Kcl!i?. /klm'ifClcA.-1:: , known to me to be the person named above and acknowledged thaf11e/she executed the foregping document as the duly authorized representative for Three-H Mechanical, Inc. L .fC{:t"-u ' ' " C!TY HALL FiRST FLOOR REMODEL HVAC CONTRACT es otary Public foâ the State of lda+o ' 5 Res1d1ng at 1J:i,u?c,k' · · . , My commission expires /O ?j NO · 4 PAGE60F 6 ---PAGE BREAK--- ACORD. CERTIFICI-E OF LIABILITY INSlf ANCyt23 DATE (MMIOONY} 02/10/03 PRODUCER Whe, t & Associates Insurance P.O. Box 3548 Spokane WA 99220-3548 Phone:[PHONE REDACTED] Fax:[PHONE REDACTED] INSURED 3-H Mechanical Inc 2705 Howard Street Coeur D Alene ID 83815 COVERAGES THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURER A INSURER B: INSURER C: INSURER D: INSURER E: INSURERS AFFORDING COVERAGE Ins Co State Fund 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 PERT A IN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PA!O CLAIMS, 'rfG-i TYPE OF INSURANCE POLICY NUMBER [ GENERAL LIABILITY ! A L?C I CO'MERCIAL GENERAL LIABILITY CPA4 969637 CLAIMS MADE OCCUR IJ{J Stop _ LJ - f- GEN'L AGGRE&E LIMIT AP . PLIES . PER: , POLICY I -½ j^8T _]Loc 1(OMOBILE LIABILITY A ANY AUTO L J ALL OWNED AUTOS ! ! SCHEDULED AUTOS r·-x-,1 HIRED AUTOS · , NON-OWNED AUTOS I : ' GARAGE LIABILITY il ANY AUTO i EXCESS LIABILITY A % OCCUR DEDUCTIBLE ' X i RETENTION CLAIMS MADE s 10,000 ; WORKERS COMPENSATION AND B EMPLOYERS' LIABILITY ! OTHER A Installation Float i CPA4969637 U04969638 579263 CPA4969637 ! i EACH OCCURRENCE IS11000,000 i : I I 01/01/03 01/01/04 FIRE DAMAGE(Aoyooefico) IS 100,000 01/01/03 01/01/03 i MED EXP (Any one person) ! S 51000 ERSONAL&ADV INJURY :s1,0001000 I GENERAL AGGREGATE Is 2, 000 I 000 I PRODUCTS -COMP/OP AGG ; s 2 I 000 I 000 I ·0-COMBINED S!NGL . E LIMIT $ 1 , 0 0 0 , 0 0 0 01/01/04 (Eaaccident) 01/01/04 ' BOD!L Y INJURY /erperson) ! BODILY INJURY (Per accident) j;ROPERTY DAMAGE ! (Per accident) $ s ' IS AUTO ONLY - EA ACCIDENT j $ OTHER THAN AUTO ONLY: EA Acc i s AGG i $ : EACH OCCURRENCE ! s 1' 000' 000 I AGGREGATE Is 1, ooo, ooo i s 1 10/01/02 10/01/03 . i E.L.DISEASE-POUCY LIMIT i $ 100 I 000 1. 01/01/03 01/01/04 li I Ded 250,000 500 DESCRIPTION OF OPERATIONSflOCAT!ONSNEHICLESfEXCLUSIONS ADDEO BY PROVISIONS Certificate Holder is named as additional insured as per form 33-0496 with respects: Moscow City Hall, First Floor Remodel "AMENDED" CERTIFICATE HOLDER Y : ADDITIONAL INSURED, INSURER LETTER. CANCELLATION City of Moscow 206 East Third Street Moscow ID 83843 ACORD 25-S (7/97) MISCLEA SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXP!RATIO DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. ©ACORD CORPORATION 1988 ---PAGE BREAK--- COMMERCIAL GENERAL LIABILITY COVERAGE EXPANSION ENDORSEMENT This Endorsement Changes The Policy. Please Read It Carefully. This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE FORM Additional premium: AGGREGATE LIMITS OF INSURANCE (PER PROJECT) The General Aggregate limit under LIMITS OF INSURANCE (Section Ill) applies separately to each of your projects away from premises owned by or rented to you. AGGREGATE LIMITS OF INSURANCE (PER LOCATION) The General Aggregate limit under LIMITS OF INSURANCE (Section Ill) applies separately to each of your "locations" owned by or rented to you. "Locations" means premises involving the same or connecting lots, or premises whose connection is interrupted only by a street, roadway, waterway or right-of-way railroad. MEDICAL PAYMENTS Subject to all the terms of Section Ill -LIMITS OF INSURANCE, the Medical Expense Limit is the higher of: a. $10,000;or b. The amount shown in the Declarations for Medical Expense Limit Under Section 1- COVERAGES, Coverage C- MEDICAL PAYMENTS, paragraph 1.a. subparagraph 2, is amended to read as follows: The expenses are incurred and reported to us within three years of the date of the accident; and This provision does not apply if Coverage C. MEDICAL PAYMENTS is excluded either by the provisions of the Coverage Part or by endorsement. ADDITIONAL INSURED BY CONTRACT, AGREEMENT OR PERMIT Section II -WHO IS AN INSURED, is amended as follows: Each of the following is also an insured: a. Any person or organization you are required by a written contract. agreement, or permit to name as an insured, but only with respect to liability arising out of: l3-0496 (7101) ---PAGE BREAK--- 1. "your ongoing operations" performed for that insured at the location designated in the contract. agreement, or permit; or 2 premises owned or used by you. b. This rnsurance does not apply unless the contract. agreement. or permit is made prior to the "bodily injury" or "property damage". WAIVER OF SUBROGATION Under Section IV- COMMERCIAL GENERAL LIABILITY CONDITIONS. the following is added to Transfer of Rights of Recovery Against Others to Us: !f you have waived those rights before a loss, our rights are waived also. NAMED INSURED Under Section II WHO IS AN INSURED, the following is added: 5) Any organization over which you maintain ownership of more than 50% will be a Named Insured if there is no other similar insurance available to that organization. However, a. Coverage A does not apply to "bodily injury" or "property damage" that occurred before you acquired or formed the organization; and b. Coverage B does not apply to "personal injury" or "advertising injury" arising out of an offense committed before you acquired or fonmed the organization. NEWLY FORMED OR ACQUIRED ORGANIZATION In paragraph 4.a. of Section II - WHO IS AN INSURED, ·go"' day is changed to 180"' day. This provision does not apply if newly formed or acquired organizations' coverage is excluded either by provision of the Coverage Part or by endorsement. FIRE, LIGHTNING, EXPLOSION AND SPRINKLER LEAKAGE If Fire Damage Coverage under Coverage A is not otherwise excluded from this Coverage Form, the following applies: A. The last paragraph of COVERAGE A, (Section 2. EXCLUSIONS is changed to read: Exclusions c through n. do not apply to damage by fire. lightning explosion or sprinkler leakage to premises while rented to you or temporarily occupied by you with the permission of the owner. A separate limit of insurance applies to this coverage as described in LIMITS OF INSURANCE (Section Ill). B. Paragraph 6. LIMITS OF INSURANCE (Section Ill} is amended to read: 6. Subject to-5. above, the Fire Damage Limit is the most we will pay under Coverage A for damages because of "property damage" to premises. while rented to you or temporarily occupied by you with permission of the owner, arising out of any one fire, lightning, explosion or sprinkler leakage incident. _)}-0496(7/0!) 1 ---PAGE BREAK--- Subject to all the terms of LIMITS OF INSURANCE (Section Ill), the Fire Damage Limit is the greater of: a. $300,000 b. The amount shown in the Declarations for Fire Damage Limit C. Paragraph (4.b.1 of OTHER INSURANCE, CONDITIONS (Section IV) is amended to read: 2) That is Fire, Lightning, Explosion, or Sprinkler Leakage insurance for premises rented to you or temporarily occupied by you with permission of the owner; or LIMITED PROFESSIONAL LIABILITY The following is added to paragraph Exclusions of COVERAGE A-BODILY INJURY AND PROPERTY DAMf,GE LIABILiTY (Section I- Coverage's) and paragraph Exclusions of COVERAGE B- PERSONAL AND ADVERTISING INJURY LIABILITY (Section I- Coverage's): This insurance does not apply to "bodily injury", "property damage", "personal injury" or "advertising injury" arising out of the rendering of or failure to render any professional services by you, but only with respect to your providing engineering, architectural or surveying services in your capacity as an engineer, architect or surveyor. Professional services include: 1. The preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions. reports, surveys, field orders, change orders, or drawings and specifications; and 2. Supervisory or inspection activities performed as part of any related architectural or engineering activities. This exclusion does not apply to your operations in connection with construction work performed by you or on your behalf. (10) NON-OWNED WATERCRAFT Exclusion g. of COVERAGE A (Section I) does not apply to any watercraft under 51 feet long that is neither: a. Owned by you; nor b. Being used to carry persons or property for a charge This provision applies to any person, who with your consent, either uses or is responsible for the use of a watercraft. This insurance is excess over any other valid and collectible insurance available to the insured whether primary, excess, or contingent. (11) CONTRACTUAL LIABILITY FOR PERSONAL INJURY AND ADVERTISING INJURY Under Paragraph Exclusion a of Coverage B (Section I) the following sentence is deleted: For which the insured has assumed liability in a contract or agreement 33-0496 (7101) 3 ---PAGE BREAK--- The following paragraph is added to the personal and advertising injury definition in Section V- Definitions: Discrimination or humiliation (unless insurance thereof is prohibited by law) that results in injury to the feelings or reputation of a natural person, but only jf such discrimination or humiliation is: 1. Not done intentionally by or at the direction of: a. The insured: b. Any officer of the corporation, drrector. stockholder, partner or member of the insured; and 2. Not directly or indirectly related to an "employee", nor to the employment, prospective employment or termination of any person or persons by an insured, This coverage does not apply if COVERAGE B- PERSONAL AND ADVERTISING INJURY LIABILITY is excluded. (12) BROAD NOTICE OF OCCURRENCE Paragraph 2. a. of the Duties In The Event of Occurrence, Offense, Claim or Suit Condition (Section IV) is deleted and replaced by the following: You must see to it we are notified as soon as practicable of an occurrence" or an offense which may result in a claim. Knowledge of an "occurrence" or an offense by your "'employees" shall not, in itself, constitute knowledge to you unless your partners executive officers", directors or insurance manager shall have actually received notice. To the extent possible, notice should include: How, when and where the "occurrence" or offense took place; The names and addresses of any injured persons and witnesses; and, The nature and location of any injury or damage arising out of the "occurrence" or offense. The following is added to the Duties In The Event of Occurrence, Offense, Claim or Suit CONDITION, (Section IV): Your rights afforded under this policy shall not be prejudiced if you fail to give us notice of an "occurrence", offense. claim or "suit", solely due to your reasonable and documented belief that the "bodily injury" or property damage" is not covered under this policy. (13) UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS Based on our reliance on your representations as to existing hazards, if unintentionally you should fail to disclose all such h azards at the inception date of your policy, we will not deny coverage under this Coverage Part because of such failure. (14) ADDITIONAL INSURED- BROAD FORM VENDORS The following is added to Section II- WHO IS AN INSURED; Any person or organization wilh whom you agreed, because of written contract or written agreement to provide insurance, but only with respect to "bodily injury" or "property damage" arising out of your products" which are distributed or sold in the regular course of the vendors business, subject lo the following additional exclusions: 33-0496 (7101) 4 ---PAGE BREAK--- The rnsurance afforded the vendor does not apply to: "Bodily injury" or "property damage" for which the vendor is obligated to pay damages by reason of the assumption of liability !n a contract or agreement This exclusion does not apply to liability for damages that the vendor would have in the absence of the contract or agreement; Any express warranty unauthorized by you; Any physical or chemical change in the product made intentionally by the vendor; Repackaging, unless unpacked solely for the purpose of inspection, demonstration. testing or the substitution of parts under instruction from the manufacturer. and then repackaged in the original container; Any failure to make such inspection, adjustments. tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business in connection with the saie of the product; Demonstration, installation, servicing or repair operations. except such operations performed at the vendors premises in connection with the sale of the product; Products which, after distribution or sale by you, have been labeled or relabeled or used as a container. part or ingredient of any thing or substance by or for the vendor. This insurance does not apply to any insured person or organization, from whom you have acquired such products, or any ingredient, part or container. entering into accompanying or containing such products. (15) ALIENATED PREMISES Under Exclusions of Section 1- COVERAGES, Damage to Property, subparagraph 2 is replaced_by the following: This exclusion does not apply to: Premises you sell, give away or abandon, if the "property damage" arises out of any part of those premises and occurred from hazards that were known by you, or should have reasonably been known by you, at the time the property was transferred or abandoned. (16) BODILY INJURY REDEFINED The definition of "Bodily Injury" under Section V- DEFINITIONS is replaced by the following; 3. "Bodily Injury" means injury, sickness or disease sustained by a person. This includes mental anguish, mental injury, shock, fright or death resulting from "bodily injury", sickness or disease. (17) INCIDENTAL MALPRACTICE- Employed Nurses, EMT's and Paramedics Subparagraph Paragraph 2.a. of Section II- WHO IS AN INSURED does not apply to a nurse. emergency medical technician or paramedic employed by you if you are not engaged in the business or occupation of providing medical, paramedical, surgical. dental, x-ray or nursing services. 33-0496 (7/0] i 5 ---PAGE BREAK--- (18) MOBILE EQUIPMENT REDEFINED Paragraph f. of the definition of"Mobile equipment" in Section V- DEFINITIONS does not apply to self propelled vehicles of less than 1 .000 pounds gross vehicles weight (19) PRODUCT RECALL EXPENSE 33-0496 (7/01) 1. Subparagraph n. of Paragraph Exclusions of Section I- COVERAGES is replaced by following; 2. Exclusions This insurance does not apply to: n. Recall Of Products, Work Or Impaired Property; Damages claimed for any loss. cost or expense incurred by you or others for ihe loss of use, withdrawal, recall, inspection, repair. replacement, adjustment, removal or disposal of: "Your product"; "Your work"; or "Impaired property"; if such product, work, or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency. inadequacy or dangerous condition in it. but this exclusion does not apply to "product recall expenses" that you incur for the "covered recall" of "your product". The exception to the exclusion does not apply to "product recall expenses" resulting from: Failure of any products to accomplish their intended purpose; Breach of warranties of fitness, quality, durability or performance; Loss of customer approval, or any cost incurred to regain customer approval; Redistribution or replacement of "your product" which has been recalled by like products or substitutes; Caprice or whim of the insured; A condition likely to cause loss of which any insured knew or had reason to know at the inception of this insurance; Asbestos, including loss. damage or clean up resulting from asbestos or asbestos containing materials; Recall of "your products" that have no known or suspected defect solely because a known or suspected defect in another of "your products" has been found. 2. The following Paragraph is added to Paragraph 4. of Section II- WHO IS AN INSURED; Coverage A does not apply to "'product recall expense" arising out of any withdrawal or recall that occurred before you acquired or formed the organization. 6 ---PAGE BREAK--- 33-0496 (7/01) 3. Paragraph 3. of Section Ill- LIMITS OF INSURANCE is replaced by the following; 3. The Products-Completed Operations Aggregate Limit is the most we will pay for the sum of: a. Damages under Coverage A because of "bodily injury" and "property damage'' included in the "products completed operations hazard"; and b. "Product recall expenses". 4. The following Paragraph is added to Section Ill- LIMITS OF INSURANCE: Subject to 5. above, $100,000 is the most we will pay for all "product recall expenses" arising out of the same defect or deficiency. 5. GENERAL LIABILITY CONDITIONS_The following condition is added to Paragraph Duties in the Event of Occurrence, Offense, Claim or Suit, of Section IV· COMMERCIAL: 2. Duties In the Event of Occurrence, Offense, Claim or Suit You must see to it that the following are done in the event of an actual or anticipated "covered recall" that may result in "product recall expense": Give us prompt notice of any discovery or notification that "your product" must be withdrawn or recalled. Include a description of "your product" and the reason for withdrawal or recall; Cease any further release, shipment, consignment or any other method of distribution of like or similar products until it has been determined that all such products are free from defects that could be a cause of loss under this insurance. 6. Section V- DEFINITIONS is amended by the addition of the following definitions; "Covered recall," means a recall made necessary because you or a government body has determined that a known or suspected defect, deficiency, inadequacy or dangerous condition in "your product" has resulted or will result in "bodily injury" or "property damage". "Product recall expense" means: a. Necessary and reasonable expenses for: Communications, induding radio or television announcements or printed advertisements including stationary envelopes and postage; Shipping there called products from any purchaser, distributor or user to the place or places designated by you; Remuneration paid to your regular "employees" for necessary overtime; Hiring additional persons, other than regular "employees"; Expenses incurred by "employees" including transportation and accommodations; Expenses to rent additional warehouse or storage space; Disposal of "your product", but only to the extent that specific methods of destruction other than those employed for trash discarding or disposal are 7 ---PAGE BREAK--- required to avoid "bodily injury" or "property damage" as a result of such disposal; You incur exclusively for the purpose of recalling "your product"; and b. Your lost profit resulting from such "covered reca!!"_ (20) SUPPLEMENTARY PAYMENTS INCREASED LIMITS SUPPLEMENTARY PAYMENTS- COVERAGES A AND B (Section 1- COVERAGES), are amended as follows: Up to $2,500 for cost of bail bond required because of accidents or traffi¢ law violations arising out of the use of any vehicle to which the Bodily Injury liability Coverage applies. We do not have to furnish these bonds. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or suit", including actual loss of earnings up to $300 a day because of time off from work. 33·0496 (7101) 8