HomeMy WebLinkAbout5098 Contract Number 5098
Vendor Hokkaido Drilling, Inc.
Subject* Well 13 & Well 14 Rehabilitation /Replacement
Department Engineering
File Class LEG 12 -1
Begin Date* 11/21/2011
End Date: 6/30/2012
Review Date
Vault Date 2014
Comments Complete 90 days after NTP -- CLOSED
Change Order #1 4/11/12
ACCEPTANCE OF COMPENSATION & RELEASE OF ALL CLAIMS
Well 13 & Well 14 Rehabilitation /Replacement Project
Project No's: 45128 &4475— Contract Number 5098
Hokkaido Drilling Inc. hereby indicates agreement with, and acceptance of, the total
Contract Price of $117,487.94, including Washington State sales and/or use taxes, total
retamage of $5,409.21 and the final Contract Time of 170 days, as full and final
compensation for all Work performed and does hereby release the City of Bremerton
from all claims, liability, demands, damages and actions of any kind whatsoever, arising
from performance of that Contract
Hokkaido Drilling Inc.
Y
By Date
Tale �aPS/ CPiL�
Certificate of Notary
Sz:scr'.ed and sworn to before me this day of e/
I - Washington State
Department of Revenue
PO Box 47474
Olympia, WA 98504 -7474
600 476 850 RECEIVED
ED
Certificate of Payment of State Excise SEP 10 2012
Taxes by Public Works Contractor
EINGNEERING DIdISI ®N
HOKKAIDO DRILLING INC CITY OF BREMERTON PUBLIC WORKS & UTIL
PO BOX 100 PAUL C WANDLING, ENGINEERING DIV
GRAHAM WA 98338 0100 3027 OLYMPUS DR
BREMERTON WA 98310 4799
We hereby certify that taxes, increases and penalties due or to become due from the above -named
contractor under Chapter 180, Laws of 1935, as amended, with respect to the following public works
contract
CITY OF BREMERTON PUBLIC WORKS & UTIL
5098, WELL 13 & 14 REHAB /REPLACE
together with all other taxes, increases and penalties due from such contractor, have been paid in full or that
they are, in the Department's opinion, readily collectible without recourse to the state's lien on the retained
percentage
This certificate is issued pursuant to the provision of Chapter 60 28 Revised Code of Washington for the
sole purpose of informing the state, county, or municipal officer charged with the duty of disbursing or
authorizing the payment of public funds to said contractor that the Department of Revenue hereby releases
the state's lien on the retained percentage provided by this Chapter for excise taxes due from said contractor
This certificate does not release said contractor from liability for additional tax that may be later
determined to be due with respect to the above - mentioned contract or other activities
Dated at Olympia, Washington,
State of Washington
Department of Revenue
e2
Certifying Officer
For tax assistance, visit dor wa gov or call 1- 800 - 647 -7706 To inquire about the availability of this document in an alternate format for the visually impaired ,
please call (360) 705 -6715 Teletype (TTY) users may call 1- 800 - 451 -7985
REV 31 0028 (10- 01 -02)
Employment Security Department
WASHINGTON STATE
P O Box 9046 Olympia, WA 98507 -9046 Fax 360 - 902 -9287
CERTIFICATE OF
CITY OF BREMERTON -PW & U ) PAYMENT OF CONTRIBUTIONS
ENGINEERING DIV ) PENALTIES AND INTEREST ON
Attn PAUL WANDLING ) PUBLIC WORKS CONTRACT
3027 OLYMPUS DR ES Reference # 52487700 4
BREMERTON, WA 98310 UBI No 600476850
CONTRACTOR
HOKKAIDO DRILLING INC
P O BOX 100
GRAHAM, WA 98338 -0100
The Employment Security Department hereby certifies those contributions, penalties and interest
due from the above named contractor under the Employment Security Act have been paid in full or
provided for with respect to the following public works contract
Description WELL 13 AND 14 REHABILITATION /REPLACEMENT
Contract number 5098
The Employment Security Department hereby certifies that it has no claim pursuant to RCW
50 24 130 against the public body named above for tax attributable to service performed for said
public body by the above named contractor on the above described contract The Employment
Security Department releases its lien on the retained percentage which is provided by RCW
60 28 040 for contributions, penalties and interest due from said contractor
This certificate does not release said contractor from liability for additional contributions, penalties
and interest which may be later determined to be due with respect to the above mentioned contract
Dated at Olympia, Washington on August 2, 2012
EMPLOYMENT SECURITY DEPARTMENT
By
Robyn R Wells RECEIVED
Authorized Representative
Original - Disbursing Officer AUG 4 7 2012
Duplicate - Employer
Triplicate - Central Office Files ENGINEERING DIVISION
. RAE sTerF o�
J
RECEIVED
t
SEP 10 2012
STATE OF WASHINGTON
DEPARTMENT OF LABOR AND INDusTW DIVISION
CITY OF BREMERTON
ATTN: PAUL C WANDLING , PROJ MGR -CIVIL ENG II
3027 OLYMPUS DRIVE
PW & U; ENGINEERING DIVISION
BREMERTON WA 98310
Certificate of Release of the State's Lien on Public Works Contracts
With this letter, the Washington State Department of Labor & Industries
approves of your release or payment of the contract amount retained
from the following contractor - --
HOKKAIDO DRILLING & DEVELOPING 283,216 -00 600 476 850
CORP
PO BOX 100
GRAHAM WA 98338
- -- related to the following public works contract:
WELL 13 AND 14 REHABILITATION /REPLACEMENT
5098
This approval is for workers' compensation insurance premiums only.
L &I's prevailing wage section separately requires all contractors on the
project file an affidavit of wages paid. These affidavits must be
approved before retainage can be released.
In our opinion, all workers' compensation insurance premiums, increases,
and penalties due to L &I from this contractor have been paid in full or
are readily collectible without recourse to the state's lien on the
retained percentage. **
This letter's sole purpose is to communicate our release of the state's
lien to the public official responsible for paying or authorizing the
payment of public funds to the contractor named above.
If we later determine that the contractor owes additional premiums
related to the above - mentioned contract or other activities, the
contractor is still liable for payment.
I Dated September 4, 2012 at Olympia, Washington.
I
I
Contract Release Specialist
RICHELLE BLOSL
360 - 902 -5385 or FOLL235&LNI.WA.GOV
** Title 51 RCW authorizes L &I to col -lect workers' compensation
insurance premiums, increases, and penalties.
Chapter 60.28 RCW establishes L &I's priority regarding this lien.
Chapter 39.12 RCW addresses L &I's requirement for affidavits of
Pagel of 3
State of Washington
Department of Labor & Industries
Prevailing Wage Section - Telephone 360- 902 -5335
PO Box 44540, Olympia, WA 98504 -4540
Affidavit of Wages Paid
Document 8/24/2012 Intent 488778 Affidavit 407176 Affidavit Approved on
Received Date Id Id Status 8/27/2012
Your Company Information
Name HOKKAIDO DRILLING INC
Address P 0 BOX 100
GRAHAM,WA,98338
WA UBI no. 600476850
Contractor Registration no. HOKKAD1017M8
Industrial Insurance Account Id 283,216 -00
Email Address HOKDRILLCAOL.COM
Fl led By DODGE,BILLY
Project Information
Awarding agency: BREMERTON, CITY OF /PUBLIC WORKS
3027 OLYMPUS DRIVE BREMERTON, WA -
98310
Awarding agency contact: PAUL WANDLING
Awarding agency contact phone number: 360- 473 -2351
Project Details
Project name Well 13 Et Well 14
Rehabilitation /Replacement
County where work was performed Kitsap
City where work was performed BREMERTON
Job site address/ directions: 5853 Central Valley Road Bremerton, WA
98310
Prime contractor name HOKKAIDO DRILLING INC
Prime contractor registration no. HOKKAD1017M8
Contract no.
https Hfortress wa gov /lni/wagelookup /AffidavitDetails aspx 8/28/2012
Page 2 of 3
Prime contractor Phone Number 253 - 847 -3579
Prime contractor Intent form Id# for this 488778
project
Dollar amount of your contract: $ 102,581.00
Bid due date 10/18/2011
Contract award date 11/3/2011
Intent filed date 11/11/2011
Job start date:MM- DD -YYYY 11/28/2011
Date work completed:MM- DD -YYYY 5/1/2012
Project Completion
Did your subcontractors perform all work on No
this project?
Did your company hire any subcontractors? No
Did your company have employees perform Yes
work on this project?
Did this project utilize American Recovery No
and Reinvestment Act (ARRA) funds?
Specifically, did this project utilize any No
weatherization or energy efficiency upgrade
funds (ARRA or otherwise)?
Is the prime contract at a cost of over one No
million dollars ($1,000,000)?
Company Owner Information
How many owner /operators performed work 1
on the project that own 30% or more of the
company?
First Name Last Name
BILLY DODGE
Affidavit Subcontractor(s)
No subcontractor is sele for this affidavit.
Journeylevel Wages
County Trade Occupation Wages Fringes # #
Workers Hours
https Hfortress wa gov /lmn/wagelookup /AffidavitDetails aspx 8/28/2012
Page 3 of 3
Kitsap Well Drillers It Well Driller "0000 00000 1 '1710
Irrigation Pump
Installers
Apprentice Wages
Public Notes
o Show /Hide Existing Notes
No note exists
https Hfortress wa gov /lni/wagelookup /AffidavitDetails aspx 8/28/2012
AFFIDAVIT OF PUBLICATION
Account #42742 AD #285280
STATE OF WASHINGTON
COUNTY OF KITSAP
I, Christine Kendrick, being first duly sworn on oath, deposes and says That she is now, and at all times
embraced in the publication herem mentioned was the principal clerk of the printers and publishers of
KITSAP SUN, that said newspaper has been approved as a legal newspaper by order of the Superior Court
of the County of Kitsap, in which County it is published and is now and has been for more than six months
prior to the date of the publication hereinafter referred to, published in the English language continually as
a daily newspaper in Bremerton, Kitsap County, Washington, a weekly newspaper in Kitsap County,
Washington and is now and during all of said time, was printed in an office maintained in the aforesaid
place of publication of said newspaper, that the following is a true text of an advertisement as it was
published in regular issues (and not in supplement form) of said newspaper on the following date, to wit
And on August 3, 2012 such newspaper was regularly distributed to its subscribers during all of said
period The full amount of the fee charged for the foregoing publication is the sum of $37 30 This amount
has not been paid in full
(Signature of Principal Clerk)
Subscribed and sworn to before me this day of August 16, 2012
CASSANDRA A CAPAS
Notary Public in and for the State of Washington, Kitsap County Notary Public
State of Washington
My Commission Expires
February 04, 2014
NOTICE OF
COMPLETION
Notice of Completion has been issued to Hokkaido Drilling Inc, on Contract No 5098, for the Well 13 &
Well 14 Rehabilitation/Replacement Project Any parties having a claim for material, labor or damages
related to this Contract have forty -five (45) days from the date of first publication of this notice to file a
claim
Shannon Corm
City Clerk
345 6th Street
Suite 600
Bremerton,
Washington 98337
August 3, 2010
Ad# 20127473
Contract Number: 5098
Vendor: Hokkaido Drilling, Inc.
Subject: Well 13 & Well 14 Rehabilitation /Replacement
Department: Engineering
File Class LEG 12 -1
Begin Date: 11/21/2011
End Date: 6/30/2012
Review Date:
Vault Date* 2014
Comments. Complete 90 days after NTP; Change Order #1 4/11/12
CITY OF BREMERTON
CHANGE ORDER
CONTRACT CHANGE ORDER NO One
PROJECT NAME Well 13 & 14 Rehabilitation /Replacement
PROJECT NO 4475 CONTRACTOR Hokkaido Drilling, Inc.
ORIGINAL CONTRACT AMOUNT $102,581 00 DAYS 90
PREVIOUSLY APPROVED CHANGES $000 DAYS 0
THIS CHANGE $7,653 11 DAYS 80
REVISED CONTRACT AMOUNT $110,234 11 DAYS 170
(Excluding Sales Tax)
This Change Order covers changes to the subject contract as described herein The Contractor shall
construct, furnish equipment and materials, and perform all work as necessary or required to
complete the Change Order Items The increase or decrease in contract price shown below does not
include applicable sales taxes
DESCRIPTION OF CHANGES INCREASE IN (DECREASE) IN CONTRACT
CONTRACT CONTRACT TIME
AMOUNT AMOUNT EXTENSION
Note A useable water aquifer was not found after drilling
approximately 400 feet in the proposed Well 14R location This
work was halted based on recommendations of the City's
consultant and redevelopment of the existing well 14 was
recommended
Itemized Changes
1) Halt drilling operation for proposed Well 14R, complete $13,34689 80 days
well 14R casing, surface seal and cap as future deep
aquifer exploratory well Decrease original contract
amounts identified by extra unused funds from both
completed and deleted bid items
2) Redevelopment of existing Well 14 (a) Authorized Hrly
Work with 80hrs at $250 /hr, (b) Extra Materials Est at $21,00000
$1000 ($5,400 in unspent Force Account will remain
in the contract)
NET CHANGE IN CONTRACT AMOUNT $7,653 11 80 days
INCREASE OR (DECREASE) Y
ESTIMATED SALES TAX (8 6 %) $65817
ESTIMATED TOTAL INCLUDING SALES TAX $8,31128
CONTRACT CHANGE ORDER NO One
PROJECT NAME Well 13 & Well 14 Rehabilitation / Replacement Contract
Contractor acknowledges and accepts that this Change Order constitutes final settlement of all claims
of any kind or nature arising from or connected with any work either covered or affected by this
Change Order, including, without limitation, claims related to contract time, on -site or home office
overhead, or lost profits Nothing in this Change Order shall limit the City's right to bring a claim for
past performance
The undersigned Contractor approves the foregoing Change Order as to the changes, if any, in the
contract price specified for each item, including any and all supervision costs and other miscellaneous
costs relating to the change in work, and as to the extension of time allowed, if any, for completion of
the entire work due to said Change Order
This document will become a supplement of the contract and all provisions will apply hereto It is
understood that this Change Order shall be effective when approved by the City of Bremerton
The parties whose names appear below warrant that they are authorized to enter into a change order
that is binding on the parties of this contract In addition, Contractor warrants that it has or will inform
the surety of this change, and shall take appropriate action to modify any bonds required under the
contract to address this change
RECOMMENDED
PROJECT ENGINEER Date
RECOMMENDED �'' I I - so 1 2.
CITY ENGINEER / DIRECTOR OF PUBLIC WORKS Date
ACCEPTED y 6 o Z0/
C TO * ����' mac.. ate
APPROVED
MAYO D
APPROVED AS TO FORM A T T ES T: k
B merton City Attorney Ci Clerk
Well 13 & Well 14 Rehabilitation / Replacement Contract Page 2 of 2
Change Order No 1 — Hokkaido Drilling, Inc
DESCRIPTION Bid Original Total Costs
Unit Contract To Date
Well 14R - New
1 mob /demob Is $7,50000 $7,50000
2 drill & complete 16" surface seal Is $2,50000 $2,50000
3 12" drive shoe Is $50000 $50000
4 Drill hole for 12" casing plf $15,00000 $14,58000
5 Provide /Install 12" casing plf $8,68000 $8,24600
6 12" shoe -cut ea $100 $000
7 Provide well screen & fittings $ $6,00000 $000
8 Extra material $ $3,00000 $000
9 Authorized rig work phr $22,50000 $000
10 Authorized hourly shop work phr $000 $000
11 Provide / install / operate remove test pump / power source Is $2,00000 $000
12 Operate Pump phr $2,40000 $000
WCD 5 -1 Install Bentornte Seal 12" to 8" Is $3,25000
WCD 5 -2 Provide and Install 275' of 8" overlap casing Is $11,18750
WCD 5 -3 8" Drive shoe Is $25000
WCD 5-4 Drill 8" hole (apnc 275400) plf $7,62000
WCD 5 -5 Case 8" hole plf $2,85750
WCD 5-6 8" shoe cut Is $000
WCD 5 -7 Delete Bid Items 7 -12 Is
WCD 1 Gravel Pad (Force Account) Is $40000
Subtotal $58,89100
Well 13 Rehabilitation
1 Mob /Demob Is $000 $000
2 Authorized hourly work ($7K Force Account) phr $15,00000 $22,00000
3 Extra Material $ $2,50000 $74311
WCD 4 Replace cable guard (Force Account) Is $70000
WCD 3 Install 2 sounding tubes (Force Account) Is $1,50000
Subtotal L $24,94311
FORCE ACCOUNT EXPENDED $ 1 $15,000 00-11 $9,60000
Contract Subtotal $102,58100 $83,83411
Force Account Remaining $5,40000
Contract Amount Still Available $13,34689
CO #1 Total Cost $21,00000
TOTAL ADDITIONAL CONTRACT AMOUNT REQUIRED $7,65311
New total Contract Amount $110,23411
Estimated Sales Tax $9,48013
Total Estimated Contract Amount $119,71424
Contract Numb�r: 5098
Vendor: - Hokkaido Drilling, Inc.
Sub�ect: Well 13 & Well 14 Rehabilitation/Replacement
Department:
File Class:
Begin Date:
End Date:
Review Date:
Engineering
LEG 12-1
11/21/2011
2/29/2012
Vault Date: 2/29/2014
Comments: Complete 90 days after NTP
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PLT�LIC VVO�tKS AG�E11�N�
THIS AGREEMENT, is entered into between the City of Bremerton, a Washington
Murucipal Corporation ("City"), and _ Hokkaido Dnlhng, Inc ("Contractor"),
whose mailing address is PO Box 100 24511 104 Ave Crt E Graham WA 98338 .
The parties agree as follows.
1. CONTItACTOit SERVICES. The Contractor shall perform the following
services for the City as specified m the attached (1) Techrucal Specifications for the drilling of
replacement Well 14, (2) Techrucal Specifications for the Rehabilitation of Well 13, (3)
Invitation to Bid and (4) all additional Contract Bid Documents.
2• TIlVIE OF COMPLETION. Contractor shall complete the work witlun ninety
(90) calendar days from the date of issuance of the City's Nohce to Proceed.
� 3. COMPENSATION. The City shall pay the Contractor the total amount of
� $102.581 00, plus any applicable Washington State Sales Tax, for the work and services
contemplated in this agreement. The Contractor shall invoice the City monthly The City will
j pay for the portion of the work described in the invoice that has been completed by the
� Contractor and approved by the City as defined in the attached Bid Pnce Schedules for Well 14
Replacement and Well 13 Rehabilitahon. The Crty payment shall not constitute a waiver of the
� City's nght to final inspechon and acceptance of the pro�ect.
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A Performance Bond. Pursuant to Chapter 39.08 RCW, the Contractor, shall
provide the Crty a performance bond for the full contract amount to be in
effect until sixty (60) days after the date of final acceptance, or until
receipt of all necessary releases from the State Department of Revenue
and the State Department of Labor and Industnes and until settlement of
any liens filed under Chapter 60 28 RCW, wluchever is later
;
� 4• �EP�NNIDENT CONTRACTOR Contractor is and shall be at all times
, actmg as an independent contractor and not as an employee of the City The Contractor shall
� secure at its expense, and shall be responsible for all payments of mcome tax, social secunty,
state industnal insurance compensahon, unemployment compensation, and all other payroll
deductions for the Contractor, officer, agents, employees and sub-contractors. The Contractor
� shall also secure all applicable busmess licenses, if requued, m connection with the contract
services, including all requ�red licenses for Contractor's officers, agents, employees and sub-
contractors
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5• TEItD'IINATION. The City may terminate tlus agreement without notice for
good cause "Good cause" shall include, v�nthout limrtation, any one or more of the following
events
WELL 13 & WELL 14 REHABILITATION / REPLACEMENT PROJECT (November 3 2011)
e, PUBLIC WORKS AGREEMENT — Page 1 of 10 (behveen City of Bremerton and Hokkardo Drrlling Inc)
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A The Contractor's failure to supply sufficient slcilled workers or suitable
matenals or equipment
B The Contractor's failure to prosecute the work with such diligence as will
ensure its physical completion within the ongmal physical completion
time specified m this Agreement and any extensions of time which may
have been granted to the Contractor by change order or otherwise
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The Contractor's failure to make full and prompt payment to
subcontractors or for matenal or labor.
The Contractor's disregard of federal, state or local laws, rules or
regulations
The Contractor's filing for bankruptcy or becoming ad�udged bankrupt
The Contractor disregards the authonty of the Crty
The Contractor performs work wluch deviates from the Contract, and
neglects or refuses to correct re�ected work
The Contractor's failure to provide contmuous competent supervision.
The Contractor otherwise violates m any material way any provisions or
requirements of the contract
If the City termmates this agreement for good cause, the Contractor shall not receive any
morues due under tlus agreement, if any, until the Contract work is completed.
6. PItEVAgI.ING vVAGES. Contractor shall file a"Statement of Intent to Pay
Prevailing Wages," with the State of Washmgton Department of Labor & Industnes pnor to
commencing the Contract work Contractor shall pay prevailing wages and comply wrth Chapter
39.12 of the Revised Code of Washington, as well as any other applicable prevailing wage rate
provisions The latest prevatlmg wage rate revision issued by the Department of Labor and
Industnes is attached
7. CHANGES. The City may issue a wntten or oral work change directive for any
change in the Contract work dunng the performance of tlus agreement If the Contractor
determmes, for any reason, that a change order is necessary, Contractor must submrt a written
change order request to the City's pro�ect manager within two (2) business days of the date the
Contractor knew or should have known of the facts and events givmg nse to the requested
change If the City determmes that the change increases or decreases the Contractor's costs or
time for performance, the City will make an equitable ad�ustment The City will attempt, in
good faith, to reach agreement with the Contractor on all equitable ad�ustments However, if the
parties are unable to agree, the City will determme the equitable ad�ustment as rt deems
appropnate The Contractor shall proceed with the change order work upon receiving erther a
WELL 13 & WELL 14 REHABILITATION / REPLACEMENT PROJECT (November 3, 2011)
�, PUBLIC WORKS AGREEMENT — Page 2 of 10 (beriveen Ciry of Bremerton and Hokkardo Drrllirrg Inc)
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� wntten or oral work change directive from the City or a change order from the City. If the
Contractor fa.ils to reqi.ure a change order wrthin the time allowed, the Contractor waives its right
� to make any claim or submrt subsequent change order requests for that portion of the contract
work If the Contractor disagrees wrth the equitable adjustment the Contractor must complete
the change order work, however, the Contractor may elect to protest the ad�ustment as provided
] below:
� A. Procedure and Protest bv the Contractor. If the Contractor disagrees wrth
anythmg required by a written work change directive, oral work change
directive or change order, mcluding any duection, instruction,
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interpretation, or determination by the Crty, the Contractor shall:
Give a signed written norice of protest to the City wrttun one
business day,
2 Supplement the wntten protest wrthin five (5) calendar days wrth a
wntten statement that provides the following u�formation:
a The date of the Contract's protest.
b The nature and circumstances that caused the protest.
c The provisions m this agreement that support the protest.
d The estunated dollar cost, if any, of the protested work and
how that estimate was determined.
e. An analysis of the progress schedule showuig the schedule
change or disruption if the Contractor is assertmg a
schedule change or disruption.
The Contractor shall keep complete records of extra costs and time
� incurred as a result of the protested work. The City shall have
- access to any of the Contractor's records needed for evaluatmg the
protest
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3 The City will evaluate all protests, provided the procedures in this
section are followed if the Crty determines that a protest is valid,
the City will ad�ust payment for work or time by an equrtable
ad�ustment No ad�ustment vv�ll be made for an invalid protest.
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� B Contractor's Duty to Comnlete Protested Work. In sprte of any protest,
r the Contractor sha11 proceed promptly with the work as the City has
_� ordered
C. Contractor's Acceptance of Changes The Contractor accepts all
requirements of a change order by: (1) endorsing it, (2) wnting a separate
_ acceptance, or (3) not protestmg in the way this section provides. A
change order that is accepted by Contractor as provided m this section
� shall constitute full payment and final settlement of all clauns for contract
�
WELL 13 & WELL 14 REHABILITATION / REPLACEMENT PROJECT (November 3 2011)
_ PUBLIC WORKS AGREEMENT — Page 3 of 10 (between City of Bremerton and Hokkaido Drclling Inc)
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time and for direct, indirect and consequential costs, mcluding costs of
delays related to any work, either covered or affected by the change.
Failure to Protest Constrtutes Waiver. By not protestmg as this section
provides, the Contractor also waives any additional entitlement and
� accepts from the City any wntten or oral order (mcludmg directions,
R instructions, interpretations, and determination)
� E Failure to Follow Procedures Constitutes Waiver By failing to follow the
� procedures of this section, the Contractor completely waives any clauns
� for protested work and accepts form the City any wntten or oral order
; (includmg directions, mstructions, interpretations, and determuiation).
J
-� 8. CLAIMS. The Contractor shall give wntten notice to the City of all claims other
� than change orders wrthin fourteen (14) calendaz days of the occurrence of the events giving rise
r to the claims. Any claim for damages, additional payment for any reason, or extension of hme,
-� whether under tlus agreement or otherwise, shall be conclusively deemed to have been waived
�; by the Contractor unless a timely wntten claun is made in stnct accordance with the applicable
provisions of tlus agreement, or, if (and only i� no such provision is applicable, unless that claim
E is set forth in detail m writing and received by the City wrthin seven (7) calendar days from the
;. date Contractor knew, or should have known, of the facts giving nse to the claim. At a
mirumum, a Contractor's written claim must include the mformation set forth regarding protests
m Section 7 A 2 a.-e.
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FAILURE TO PROVIDE A COMPLETE, WRITTEN NOTIFICATION OF CLAIM
WITHIN THE TIME ALLOWED SHALL BE AN ABSOLUTE WAIVER OF ANY CLAIMS
� ARISING IN ANY WAY FROM THE FACTS OR EVENTS SURROUNDING THAT CLAIM
OR CAUSED BY THAT DELAY.
� Contractor must, in any event, file any claim or bruig any suit ansing from or connected
with this agreement witlun 120 calendaz days from the date the contract work is complete.
a 9. WARI2ANTY. The Contractor shall correct all defects m workmanship and
materials wrtlun one yeax from the date of the Contractor's acceptance of the Crty's final
payment under this contract When defects are corrected, the warranty for that portion of the
� work shall extend for one year form the date such correction is completed and accepted by the
City The Contractor shall begin to correct any defects wrtlun seven (7) calendar days of its
receipt of notice from the City of the defect If the Contractor does not accomplish the
° conections within a reasonable tune, the City may complete the corrections and the Contractor
shall pay a11 costs incurred by the City in order to accomplish the correction
� 10. INIDENdNIFICATION. Contractor shall defend, indemrufy and hold the City, its
officers, officials, employees, agents and volunteers harmless from any and all claims, in�unes,
damages, losses or suits includmg all legal costs and attorney fees, ansmg out of or m connection
� with the performance of this agreement, except for m�unes and damages solely caused by the
City's negligence
WELL 13 & WELL 14 REHABILITATION / REPLACEMENT PROJECT (November 3, 2011)
PUBLIC WORKS AGREEMENT — Page 4 of 10 (between C1ty of Bremerton and Hokkardo Drilling Inc )
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The City's mspechon or acceptance of any of Contractor's work when completed shall
J not be grounds to avoid any of these covenants of mdemtufication
Should a court of competent jurisdiction determine that tlus agreement is sub�ect to RCW
J 4 24 115, then, in the event of liabiliTy for damages ansing out of bodily mjury to persons or
damages to property caused by or resulhng from the concurrent negligence of the Contractor and
the City, rts officials, employees, agents and volunteers, the Contractor's liability hereunder shall
� be only to the extent of the Contractor's negligence
J IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THIS
INDEMNIFICATION CONSTITUTES THE CONTRACTOR'S WAIVER OF IMMUNITY
UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSE OF
� THIS INDENINIFICATION THE PARTIES ACKNOWLEDGE THAT THEY HAVE
MUTUALLY NEGOTIATED THIS WAIVER
� The provisions of this section shall survive the expirat�on or termination of this
agreement.
J 11. INSURANC�. The Contractor shall procure and maintain for the duration of tlus
agreement, insurance agamst claims for inJunes to persons or damage to property that may anse
from or in connection with the performance of the Contract work by the Contractor, its agents,
� representatives, employees or subcontractors
Before beginnmg the work on the pro�ect described in this agreement, the Contractor
� shall provide a Certificate of Insurance evidencmg
A Automobile Liabilitv insurance wrth limits no less than $1,000,000 combined
� single limit per accident for bodily m�ury and property damage, and
B Commercial General Liabilitv insurance wntten on an occurrence basis with
� limits no less than $2,000,000 combmed single limit per occurrence and
$2,000,000 aggregate for personal m�ury, bodily in�ury and property damage.
Coverage shall mclude but not be limited to blanket contractual;
� products/completed operations/broad form property damage; explosion,
collapse and underground (XCU) if applicable, and employer's liability.
� Any payment of deductible or self insured retention shall be the sole responsibilrty of the
Contractor
� The City reserves the right to receive a certified copy of all the required insurance
policies
� The City, its officials, employees, agents and volunteers shall be named as an
addrtional insured on the insurance policy, as respects work performed by or on behalf of the
J
� WELL 13 & WELL 14 REHABILITATION / REPLACEMENT PROJECT (November 3 2011)
PUBLIC WORKS AGREEMENT — Page 5 of 10 (between Crty of Brem2rton arrd Hokkaado Drillrng Inc)
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Contractor and a copy of the endorsement naming the City as addrtional insured shall be attached
to the Certificate of Insurance
The Contractor's insurance shall contain a clause staring that coverage shall apply
separately to each insured against whom claim is made or surt is brought, except with respects to
the limits of the insurer's liability
� The Contractor's insurance shall be pnmary msurance as respects the Ciry and it shall be
an affirmahve obligation upon Consultant to advise the City's Risk Manager by fax at (360) 473-
5161, or by certified mail, return receipt requested to City of Bremerton, attn. Risk Management,
345 6`� Street, Suite 600, Bremerton, WA 98337 within two days of the cancellation, suspension
� or substantive change of any insurance policy set out herem, and failure to do so shall be
construed to be a breach of this Agreement
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If this contract requires work to be performed m or on navigable waters, the
Contractor shall provide insurance wntten on an occurrence basis wrth limits no less than
$2,000,000 combined single limit per occurrence and $2,000,000 aggregate for claims made
under the Longshoreman and Harbor Workers Act and the Jones Act.
12. NlISCELLANEOUS.
A Nondiscnmmation. In the hiring of employees for the performance of
work under tlus Agreement or any sub-contract hereunder, the Contractor,
rts sub-contractors, or any person acting on behalf of such Contractor or
sub-contractor shall not, by reason of race, religion, color, sex, national
ongin, or the presence of any sensory, mental, physical disability, or
sexual onentation discriminate against any person who is qualified and
available to perform the work to wluch the employment relates
B Compliance wrth Laws Contractor sha11 comply with all federal, state
and local laws, rules and regulations throughout every aspect in the
performance of thts agreement
C Work Performed at Contractor's Risk Contractor shall take all
precautions necessary and shall be responsible for the safety of rts
employees, agents, and subcontractors in the performance of this
agreement All work shall be done at Contractor's own nsk, and
Contractor sha11 be responsible for any loss of or damage to materials,
tools, or other articles used or held for use m connection with the work.
D Nonwaiver of Breach The failure of the City to insist upon strict
performance of any of the terms and nghts contained herem, or to exercise
any option herein conferred in one or more instances, shall not be
constructed to be a waiver or relinquishment of those terms and rights and
they shall remain in full force and effect
WELL 13 & WELL 14 REHABILITATION / REPLACEMENT PROJECT (November 3, 2011)
� PUBLIC WORKS AGREEMENT — Page 6 of 10 (between Crty of Bremerton and Hokkaido Drrllrng Inc)
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E Governing Law This agreement shall be governed and construed m
accordance with the laws of the State of Washington If any dispute anses
between the City and Contractor under any of the provisions of this
agreement, resolution of that dispute shall be available only through the
�unsdichon, venue and rules of the Kitsap County Superior Court, Krtsap
County, Washington
F Attorne 's Fees. To the extent not mconsistent with RCW 39 04.240, in
any claim or lawsurt for damages ansmg from the parties' performance of
tlus agreement, each party shall be responsible for payment of its own
legal costs and attorney's fees incurred m defending or bnnging such
claun or lawsuit, however, nothmg in this subsechon shall limit the Crty's
nght to mdemrufication under Section 10 of this agreement
G Wntten Notice. All commumcations regazding this agreement shall be
sent to the parties at the addresses listed on the signature page of this
agreement, uniess otherwise notified Any wntten notice shall become
effechve upon delivery, but m any event three (3) calendar days after the
date of mailing by registered or certified mail, and shall be deemed
sufficiently given if sent to the addressee at the address stated on this
agreement
H Assi n�ment Any assignment of tlus agreement by the Contractor without
the written consent of the Crty shall be void.
Modification No waiver, alteration, or modification of any of the
provisions of this agreement shall be bmdmg unless in wnting and signed
by a duly authonzed representative of the Crty and Contractor
Severabilitv. If any one or more sections, sub-sections, or sentences of
tlus agreement are held to be unconstitutional or invalid, that decision
shall not affect the validity of the remauung portion of this agreement and
the remamder shall remam in full force and effect
K Entue A�reement T'he written provisions and terms of tlus agreement,
together with any attached Exlubits, supersede all pnor verbal statements
by any representat�ve of the City, and those statements shall not be
construed as fornvng a part of or altenng in any manner this agreement.
This agreement and any attached Exlubits contam the entire agreement
between the parties Should any langua.ge m any Exhibrt to tlus agreement
conflict with any language contained in this agreement, the terms of tlus
agreement shall prevail.
WELL 13 & WELL 14 REHABILITATION / REPLACEMENT PROJECT
n PUBLIC WORKS AGREEMENT — Pa e 7 of 10 (November 3, 2011)
g (between Crty oJ Bremerton and Hokka�do Drillrng Inc)
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� �N WI'T1�SS W�REOY', the parties below have executed this agreement.
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CONTRACTOR
(�� ,.�/" �� �
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Pnnt Name Billv A �od�e
Title President
DATE�T r/
THE CITY OF BREMERTON
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Print Naune Patty Lent
Trtle• Ma or
DATE Z� �tGOv P�
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Notices to be sent to:
CONTRACTOR
Hokka.ido Dnllin� Inc
PO Box 100
24511 104` Ave Crt E
Graham. WA 98338
R �I PW Agr doc
Notices to be sent to:
CITY OF BREMERTON
Paul C Wandlin� PE
Protect Engmeer
3027 Ol�mp Dnve
Bremerton, WA 98310
(360) 473-2351
(360) 473-5398 (facsimile)
APPROVED AS TO FORM
�-
' B merton City Attorney
ATTEST: �'-- -
� ;� �� ��,
Bremerton City Clerk
WELL 13 8 WELL 14 REHABILITATION / REPLACEMENT PROJECT (November 3 2011)
_ PUBLIC WORKS AGREEMENT — Page 8 of 10 (between Crty of Bremerton and Hokkardo Drrlling Inc)
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,,� Client# 68158 HOKKDRIL3
`' ACORD,u CERTIFICATE OF LIABILITY INSURANCE DATE(MM/DD/YYYY)
11/10/2011
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), AUTHORI2ED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER
IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed if SUBROGATION IS WAIVED, sub�ect to
the terms and conditions of the policy, certain policies may require an endorsement A statement on this certificate does not confer rights to the
certificate holder in lieu of such endorsement(s)
PRODUCER NAME Wendy Mace
Propel Insurance ac"N Ext 360-824-4972 ac No 360-478-5961
Bremerton Commercial Insurance EdNAIL
P O Box 711 nooRess Wlm@propelinsurance com
INSURER(S) AFFORDING COVERAGE NAIC �
Bremerton, WA 98337 H rtf d I G
INSURED
Hokkaido Dnlling Inc
PO BOX 1 OO
Graham, WA 98338
INSURERA a or nsurance roup
INSURER B Hartford Casualty Insurance
INSURER C
INSURER D
INSURER E
COVERAGES CERTIFICATE NUMBER REVISION NUMBER
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE �ISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATEO NOTWITHSTANOING ANY REQUIREMENT TERM OR CONOITION 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
LTR TYPE OF INSURANCE ADDL SUBR POLICY EFF POLICY EXP
INSR WVD POLICY NUMBER MMIDD MM/DD/YYYY LIMITS
A GENERALLIABILITY Y Y 22UUVTA2250 6/01/2011 06/01/201 EACHOCCURRENCE $� OOO OOO
X COMMERCIAL GENERAL LIABIIITY PREMISES Ea occur n� S3OO OOO
CLAIMS MADE � OCCUR MED EXP (Any one person) b � O OOO
PERSONAL 8 ADV INJURY $'I ,OOO�OOO
GENERALAGGREGATE $Z,OOO�OOO
GENLAGGREGATELIMITAPPLIESPER PRODUCTS-COMP/OPAGG $Z�OOO�OOO
POLICY PRO-
JEC7 LOC a
/� AUTOMOBILE LIABILITY 22UUVTA2250 6/01/2011 06/01/201 COMBINED SINGLE LIMIT
Eaecadent �,���,Q�� -
X ANY AUTO BODILY INJURY (Per person) $
ALL OWNED SCHEDULED BODILY INJURY Per acCdent $
AUTOS AUTOS ( )
X HIREO AUTOS X NON OWNED PROPERTY DAMAGE
AUTOS Per acadenl $
a
B �( UMBRELLA LIAB OCCUR 22RHVTA2019 6/01/2011 06/01/201 EACH OCCURRENCE b3 000 0�0
EXCESS LIAB CLAIMS MADE AGGREGATE E3 OOO OOO
DED X RETENTION $'I O OOO $
WORKERS COMPENSATION WC STATU OTH-
AND EMPLOYERS UABILITY
A ANY PROPRIETOR/PARTNER/EXECUTIVE Y � N ZZUUVTAZZSO 6/01 /2011 06/01/201 E L EACH ACCIDENT $� OOO OOO
OFFICER/MEMBER EXCLUDED7 � N / A
(Mandatory In NH) E L DISEASE EA EMPLOYEE $'I OOO OOO
If yes descnbe under
DESCRIPTION OF OPERATIONS below E l DISEASE - POLICY LIMIT $'I �OOO�OOO
OESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES �Attach ACORD 101, Additlonal Remarks Schedule, If more epace is requlred)
RE Well 13 8 Well 14 Rehabditat�on/Replacement Pro�ect
City of Bremerton, its officials, employees, agents and volunteers are addit�onal insured per the attached
endorsement
CERTIFICATE HOLDER roNr.Fi i erinu
City of Bremerton Public Works 8 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
Utdities ACCORDANCE WRH THE POLICY PROVISIONS
3027 Olympus Drive '
Bremerton, WA 98310 AUTHORIZED REPRESENTATIVE
'J'm'„"I {�' '�qt`--
OO 1988-2010 ACORD CORPORATION All rights reserved
ACORD 25 (2010/05) 1 of 1 The ACORD name and logo are registered marks of ACORD
#S8011741M678312 CT00
This page has been left blank mtentionally
Why We Are Using the Latest ACORD 25 Certificate of Insurance
In September 2009, ACORD rev►sed the ACORD 25 Certificate of Insurance form Qne of the ma�or
changes was the removal of the cancellation notice prov�s�on For the followmg reasons, we are
unable to issue an older editron of this form, modify the current form, or comp(ete a propr�etary form
you provide
Notice of cancellation is a pol�cy nght, not an unregulated service No insurer shown on this
certificate is able to provide the cancellation notice you desire by endorsement For example, the
insured can cance! immediately, so it would be impossible for the rnsurer to give you the not�ce you
request State law also granfs the insurer the r�ght to cancel for reasons such as nonpayment with
less notice than you require
• For the reason �ust cited, if our agency was to issue a certificate that provrdes the cancellation
not�ce you request, we would do so with the fuli knawledge that it wouid be impossible to actually
g�ve tha# amount of notice under certain circumstances As such, the certifcate could be alleged to
constitute a misrepresentat�on or fraud which could sub�ect our agency and staff to serrous civil
and cnminal penaities
• If a certificate purports to provide a policy nght drfFerent from that provided by the policy itself, then
the certificate effectively purports to be a poficy farm Palicy forms must be filed and approved by
our state department of msurance Use of nonfiled policy forms is illegal and could resu(t in legal
sanctions distinct from the assertion that the certi�cate is fraudulent
• Under the ACORD Corporation's licensing agreement, the prior editions of superseded forms can
be used for one year from the t�me the new forms are mtroduced Beginntng in September 2010,
this is another reason we cannot use an older edition of the ACORD 25 Domg so would violate
ACORD's licensing agreement and, as a copynghted document, federal copyright law
• Likewise, we are unable to modify the new certificate to add a not�ce of cancellat�on ACORD forms
are designed to be completed, not altered ACORD's Forms Instruction Guide says that a
certificate should not be used "To waive rights To quofe wording from a contract To quote any
wordrng which amends a policy unless the policy itself has been amended " In add�tion, our
insurance company contracts only allow us to �ssue unaltered AC�RD forms
• We are often asked to issue propnetary certificates provided by the certifrcate requestor Again, our
insurance company contracts only alfow us ta issue unaltered ACORD forms Many proprietary
certificates mclude broad, vague or ambiguous language that may or may not be mcompliance with
state laws, regulations, and insurance department drrectives Therefore, we cannot issue any
proprietary certificates
We appreciate your understandmg of the legal restnctions on our abd�ty to fully comply with your
request
Th�s page has been left blank �ntentionally
Hokkaido Dnlling Inc
22UUVTA2250
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COMIUIERCIAL GER9ER�►L LIABiLITY COVERAGE FORIVi
Various provrsions �n this policy restr�ct coverage Read
the entire policy carefully to determrne nghts, duties and
what �s and is not covered
Throughout this policy the words "you" and "your" refer to
the Narned Insured shown m the Decfarations, and any
other person or organization qualifying as a Named
Insured under this policy The words "we", "us" and "our'
refer to the stock msurance company member of The
Hartford providmg this insurance
The word "�nsured" means any person or organ�zat�on
quaitfying as such under Section II — Who Is An fnsured
Other words and phrases that appear in quotation marEcs
have special mearnng Refer to Section V—Defin�tions
SECTION I — COVERAGES
COVERAGE A BODILY INJURY AND PROPERTY
DAMAGE LIABILITY
1 Insuring Agreement
a We wdl pay those sums that the msured becomes
legally obligated to pay as damages because ofi
"bodily in�ury" or "property damage" to which this
insurance applies We wdi have the nght and duty
ta defend the msured against any "suit" seeking
those damages However, we wdi have no duty to
defend the insured against any "suit" seekmg
damages for "boddy in�ury" or "property damage" to
which this insurance does not apply We may, at
our discretion, invest�gate any "occurrence" and
settle any claim or "suit" that may result But
{1) 7he amount we wdl pay for damages is lim�fed
as descnbed in Section Ill — Limits Of
Insurance, and
(2) Our nght and dury to defend ends when we
have used up the applicable l�mit of insurance m
the payment of �udgments or settlements under
Coverages A or 8 or med�caf expenses under
Coverage C
No other obligation or liab�lity to pay sums or
perForm acts or services is covered unless explicitly
provided for under Supplementary Payments —
Coverages A and B.
b This insurance applies to "bodily m�ury" and
"prope�ty damage" only if
(1) The "boddy in�ury" or "property damage" is
caused by an "occurrence" that takes place in
the "coverage terntory",
{2) The "bod�ly �n�ury" or "property damage" occurs
durmg the poiicy penod, and
(3) Prior to the policy penod, no insured listed
under Paragraph 1 of Section Il — Who Is An
insured and no "employee" authonzed by you to
give or receive notrce of an "occurrence" or
cla�m, knew that the "baddy in�ury" or "property
damage" had occurred, m whale or in part lf
such a Itsted insured or authonzed "employee"
knew, pnor to the policy per�od, that the "Bodily
m�ury" or "property damage" occurred, then any
contmuaf�on, change or resumpt�on of such
"bodily in�ury" or "property damage" durmg or
aRer the policy pertod wdl be deemed to have
been known pnor to the policy period
c. "Boddy injury" or "property damage" will be deemed
to have been known to have occurred at the
earliest time when any insured listed under
Paragraph 1. of Section II — Who Is An insured or
any "employee" authonzed by you to give or
receive notice of an "occurrence" or claim
(1} Reports ali, or any pa�t, of the "boddy m�ury" or
"property damage" to us or any other msurer,
{2) Receives a written or verbal demand or cla�m
for damages because of the "bodily in�ury" or
"property damage", or
(3) Becomes aware by any other means that
"boddy in�ury" or "property damage" has
occurred or has begun to occur
d. Damages because of "boddy in�ury" mclude
damages claimed by any person ar organizat�on for
care, loss of services or death resuEtmg at any time
from the "bodify m�ury"
e. Incidental Medtcal Malpractice
t1} "Boddy m�ury" ansmg out of the rendenng of or
failure to render professional health care
sernces as a physician, dentist, nurse,
emergency medical technician or paramed�c
shall be deemed to be caused by an
"occurrence", but only if
(a) The physic�an, dentist, nurse, emergency
medicai techmcian or paramedic is
employed by you to prov�de such services,
and
(b) You are not engaged in the business or
occupation of providcng such services
HG 00 01 06 05 Page 1 of 18
O 2005 The Hartford
(Includes copynghted matenal �f Insurance Services Office, Inc with its perm�ssion )
Hokkaido Drdling Inc
22UUVTA2250
(2) For the purpose of determmmg the limits af
insurance for �ncidental medical malpractice,
any act or om►ssion together w�th all related acts
or omissions En the fumishing of these services
to any one person witl be considered one
"occurrence"
2 Exclusions
This insurance does not apply to
a Expected Or intended In�ury
"Bodily m�ury" or "property damage" expected or
mtended from the standpoint of the insured Th�s
exclusion does nof apply to "bodily in�ury" or
"property damage" resulting from the use of
reasonable force to protect persons or property
b. Contractual Liability
"Bodily m�ury" or "property damage" for which the
insured is obligated to pay damages by reason of
the assumption of liab�lity in a contract or
agreement This exclusion daes nat appiy to IiabifEfy
for damages
(1) That the �nsured would have m the absence of
the conVact or agreement, or
(2} Assumed in a contract or agreement fhat is an
"fnsured contract", prov�ded the "boddy �nfury" or
"property damage" occur5 subsequent to the
execution of the contract or agreement Solely
for the purposes of liabdity assumed in an
"�nsured contracY', reasonabie attorney fees and
necessary litigation expenses �ncurred by or for
a party ofher than an insured are deemed to be
damages because of "bodily in�ury" or "property
damage", prov�ded
{a) l.iabdity to such party for, or for the cost of,
that party's defense has also been assumed
in the same "msured contract", and
(b) Such attomey fees and i�tigation expenses
are for defense of that party agamst a ci vd or
alternative dispute resolution proceeding m
whtch damages to which thrs msurance
appltes are aileged
c. Liquor Liability
"Boddy m�ury" or "property damage" for which any
►nsured may be held liable by reason of
(1) Causmg or contnbuting to the mtoxication of any
person,
(2} The fumishing of alcohol�c beverages to a
person underthe lega! dnnk�ng age ar underthe
�nfluence of alcohof, or
(3� Any statute, ordmance or regulation relatmg to
the sale, gift, distnbut►on or use of alcoholic
beverages
This oxclusion applies only if you are m the
business af manufactunng, distnbutmg, selling,
serving orfumishing alcoholic beverages
d Workers' Compensation And Similar Laws
Any abligation of the insured under a workers'
compensation, disability benefits or unemployment
compensation law or any simdar law
e. Employer's Liabilrty
"Boddy in�ury" to
(1) An "employee" of the msured ar�sing out of and
in the course of
(a) Empioyment by the insured, or
(6) Performmg dufies related to the conduct of
ihe msured's business, or
(2) The spouse, chdd, parent, brother or sister of
that "employee" as a consequence of
Paragraph (1) above.
Th�s exc(us►on appl�es
(1) Whether the insured may be liable as an
employer or m any other capacify, and
(Z} To any obfigation ta share damages w�th or
repay someone else who must pay damages
because of the in�ury
Th�s exciusion does not apply to liabi(►ty assumed
by the msured under an "�nsured contract"
f Pollution
(1) "Boddy in�ury" or "property damage" arising out
of the actual, alleged or threatened discharge,
dispersal, seepage, m�gration, release or
escape of "pollutants"
(a) At or from any premises, sde or location
which is or was at any time owned or
accupied by, or rented or loaned to, any
insured However, this subparagraph does
not apply to
(i} "Boddy m�ury" if sustained withm a
buildmg and caused by smoke, fumes,
vapor or soot produced by or onginating
from equipment that is used to heat, cool
or dehumidify the building, or equipment
that is used to heat water for personal
use, by the building's occupants or their
guests,
(ri) "Boddy in�ury" ar "property damage" for
which you may be held liable, if you are a
contractor and the owner or lessee of
such premises, s�fe or locat�on has been
added to your pol�cy as an add�tional
insured w�th respect to your ongoing
operat�ons performed for that add�t�onal
insured at that premises, srte or locat�on
and such premises, s�te or location is not
and never was owned or occupied by, or
rented or loaned to, any msured, other
than that addrtional insured, or
Page 2 of 18 HG 00 01 06 05
F�okkaido Dnllmg Inc
22UUVTA2250
(iii) "Bodily inJury" or "property damage"
ar�smg out of heat, smoke or fumes from
a "hostile fire",
(b) At or from any prem�ses, site or location
which is or was at any time used by or for
any �nsured or others far the handling,
storage, disposal, processmg or treatment of
waste,
{c) Wh�ch are or were at any i�me transported,
handled, stored, treated, disposed of, or
processed as waste by or for
(i) Any insured, or
{ii) Any person or organization for wham you
may be legally responsible,
(d) At or from any premises, s�te or location on
which any insured or any contracfars or
subcontractors work�ng directly or md►rectly
on any insured's behalf are performing
operations if the "pollutants" are brought on
or to the premises, site or location in
connect�on wdh such operations by such
insured, contractor or subcontractor
Hawever, th�s subparagraph does not apply
to
(i) "Bodily in�ury" or "property damage"
arismg out of the escape of fueis,
lubncants or other operating fluids wh�ch
are needed to perform the normal
electncal, hydraulic or mechanical
functions necessary for the operation of
"mobile equipment" or �ts parts, if such
fuels, lubncants or ofher operating fluids
escape from a vehicle part designed to
hold, store or rece�ve them This
exception does not apply if the "bodily
m�ury" or "praperty damage" anses out of
the intentional discharge, dispersal or
release of the fuels, lubncants or other
operat�ng fluids, or if such fuels,
lubncants or ather operat�ng fiu�ds are
brought on or to the prem�ses, s�te or
location w�fh the mtent that they be
discharged, d�spersed or released as part
of the operations being performed by
such msured, contractor or
subcontractor;
(ii) "Boddy m�ury" or "property damage"
sustained within a build�ng and caused
by the release of gases, fumes or vapors
from matenals brought mto thai bu�ldmg
m connection with operations bemg
performed by you or on your behalf by a
contractor or subcontractor, or
(iii} "Boddy m�ury" or "property damage"
arismg out of heat, smoke or fumes from
a "hostile fire", or
(e) At or from any premises, s�te or location on
which any insured or any contractors or
subcontractors working directly ar mdirectly
on any msured's behalf are performmg
operations �f the operations are to test for,
monitor, clean up, remove, conta�n, treat,
detoxify or neutralize, or in any way respond
to, or assess the effects of, "pollutants"
(2) Any foss, cost or expense ansmg out of any
(a) Request, demand, order or statutory or
regulatory reqwrement that any insured or
others test for, mon�tor, clean up, remove,
contam, treat, detoxify or neutralize, or in
any way respond to, or assess the effects of,
"polfutants", or
(b) Claim or su�t by or on behalf of a
governmenfal authonty for damages
because of testmg for, monitoring, cieaning
up, removmg, contaming, treatmg,
detox►fying or neutralizing, or in any way
responding to, or assessmg the effects of,
"pollutants"
However, this paragraph does not apply to
liabdity far damages because of "property
damage" that the msured would have in fhe
absence of such request, demand, order or
statutory or regulatory requiremenf, or such
cla�m or "su�Y' by or on behalf of a governmentaf
author�ty
g A�rcraft, Auto Or Watercraft
"Boddy injury" or "property damage" ansing aut of
the ownership, maintenance, use or entrustment to
others of any aircraft, "auto" or watercraft owned or
operated by or rented or loaned to any msured Use
mcludes operation and "loading or unloading"
This exclusion applies even if the claims agamst
any insured allege negligence or other wrongdoing
in the supervision, hiring, employmeni, training or
mon�toring of others by that ►nsured, if the
"occurrence" which caused the "bodily inJury" or
"propefty damage" mvoived fhe ownership,
maintenance, use or entrustment to others of any
aircraft, "auto" or watercraft thai is owned or
operated by or rented or loaned to any insured
This exclusion does not apply to
(1) A watercraft while ashore on premises you own
or rent,
(2) A watercraft you do not own fhat is
(a) Less than 51 feet long, and
(b) Not bemg used to carry persons for a
charge,
(3) Parking an "auto" on, or on ihe ways next to,
premises you own or rent, provided the "auto" is
not owned by or rented or loaned to you or the
insured,
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(4� Liability assumed under any "msured contract"
for the owner�hip, maintenance or use of
a�rcraft or watercraft,
(5) "BodOy in�ury" or "property darnage" arising out
of the operation of any of the equipment lisfed m
Paragraph f.(2) or f(3} of the definition of
"mob�le equ�pmenY', or
(6) An aircraft that is not owned by any insured and
is hired, chartered or loaned vrdh a paid crew
However, this exception does not appiy if the
msured has any other msurance for such "bodily
m�ury" or "property damage", whether the other
insurance is primary, excess, con#mgent or on
any other basis
h. Mobile Equipment
"Boddy tn�ury" or "property damage" ansing out of
(1) The transportation of "mobde equipment" by an
"auto" owned or operated by or rented or loaned
to any insured, or
(2� The use of "mobile equipmenY' in, or while in
practice for, or whde bemg prepared for, any
prearranged racing, speed, demolition, or
stuntmg activ►ty
i. War
"Boddy �n�ury" or "property damage", however
caused, ansing, directly or �ndirectfy, out of
(1► War, including undeclared or civd war,
(2} War(ike action by a mditary force, including
action in hmdenng or defendmg agamst an
actual or expected attack, by any government,
sovereign or other authonty using mditary
personnel or other agents, or
(3) Insurrection, rebellion, revolution, usurped
power, or action taken by governmental
authordy in hindenng ar defending against any
of these
j Damage To Property
"Property damage" to
(1) Property you own, rent, or occupy, mcludmg any
costs or expenses incurred by you, or any other
person, organization or ent�ty, for repair,
replacement, enhancement, restoration or
mamtenance of such property for any reason,
mcludmg prevent�an of m�ury to a person or
damage to anofher's property,
(2) Premises you sell, give away or abandon, if the
"property damage" anses out of any part of
those premises,
(3� Property loaned to you,
(4) Personal property m the care, custody or control
of the msured,
(Sj That particular part of real property on which
you or any contractors or subcontractors
workmg directly or �ndirectly on your behalf are
pertorming operations, d the "property damage"
anses out of those operations, or
(6) That particular paR of any property that must be
restored, repaired or replaced because "your
work" was incorrectly performed on it
Paragraphs (1), (3) and (4) of th�s exclusion do not
apply to "property damage" (other than damage by
fre) to premises, mcluding fhe contents of such
premises, rented fo you for a penod of 7 or fewer
consecut�ve days A separate lim�t of insurance
applies to Damage To Premises Rented To You as
described m Section III — Limits Of Insurance
Paragraph (2) of this exclus�on does not apply if the
premises are "your work" and were never occupied,
rented or held for rental by you
Paragraphs (3) and (4) of this exclusion do not
apply to "property damage" ansing from the use of
elevators
Paragraphs (3j, (4), (5} and (6) of this exclus�on do
not apply to I�abildy assumed under a sidetrack
agreement
Paragraphs (3) and (4) of th�s exclusion do not
apply to "property damage" to borrowed eqwpment
while not being used to perform operat�ons at the
�ob sife
Paragraph (6) of this exclus►on does not appfy to
"property damage" inciuded m the "products-
completed operations hazard"
k. Damage To Your Product
"Property damage" to "your product" arismg out of �t
or any part of d
I Damage To Your Work
"Property damage" to "yourwork" ansing out of rt or
any part of it and �ncluded in the "products-
completed operations hazard"
This exclusion does not apply if the damaged work
or the work out of which the damage anses was
performed on your behalf by a subcontractor
m Damage To Impaired Property Or Property Not
Physically Injured
"Property damage" to "�mpaired property" or
property that has not been physically m�ured,
ansing out af
(1) A defect, deficiency, madequacy or dangerous
condit�on in "your product" or "yourwork", or
f2) A defay or failure by you or anyone actmg on
your behaff to perform a contract or agreement
in accordance w�th �ts terms
This exclusion daes not apply to the lass of use of
other property ansing out of sudden and accidental
physicai tn�ury to "your product" or "your work" after
it has been put to ds �ntended use
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n Recall Of Products, Work Or Impa�red
Property
Damages claimed for any ioss, cost or expense
incurred by you or others for the foss of use,
withdrawai, recall, �nspection, repair, replacement,
adlustment, removal or disposal of
(1) "Your producY',
(2� "Your work", or
(3y "Impaired property",
�f such product, work, or property is w�thdrawn or
recalled from the market or from use by any person
or organ�zation because of a known or suspected
defecf, deficiency, inadequacy or dangerous
condition in it
o Personat And Advertising Injury
"Bodily m�ury" ansing out of "personal and
advertising in�ury"
p Eiectron�c Data
Damages ansing out of the loss of, loss of use of,
damage to, corrupt�on of, mabdiiy to access, or
inabdity to marnpulate electron�c data
As used in this exclus�on, electron�c data means
mformation, facts or programs stored as or on,
created or used on, or transmitted to or from
computer software, mcluding systems and
applications software, hard or floppy disks, CD-
ROMS, tapes, dr�ves, ceils, data processmg
devices or any other media which are used w�th
electrorncally controlied equipment
q Employment-Related Practices
"Bodtly in�ury" to
(1} A person ansmg out of any "employment—
related practices", or
(2) The spouse, child, parent, brother or sister of
that person as a consequence of "bodify in�ury"
to that person at whom any "employment-
related practices" are d�rected
Th�s exclusion applies
(1) Whether the insured may be liable as an
employer or m any other capacny, and
(2) To any obligat�on to share damages wdh or
repay someone else who must pay damages
because af the m�ury
r Asbestos
(1) "Bodily m�ury" or "proPerty damage" ans�ng out
of the "asbestos hazard"
(2j Any damages, �udgments, settlements, loss,
costs or expenses that
{a) May be awarded or incurred by reason of
any claim or su�t alleging actuai or
threatened in�ury or damage of any nature or
k�nd ta persons or property which would not
have occurred �n whole or m part but for the
"asbestos hazard",
(b) Arrse out of any request, demand, order or
statutary or regulatory requirement that any
msured or others test for, mondor, clean up,
remove, encapsulate, contain, treat, detoxify
or neutralize or m any way respond to or
assess the effects of an "asbestos hazard",
or
(c) Arise out of any clafm or suit for damages
because of testmg for, monitormg, cleaning
up, removing, encapsulating, contammg,
treaUng, detox�fymg or neutralizmg or m any
way responding to or assessmg the effects
of an "asbestos hazard"
Damage To Premises Rented To You — Exception
For Damage By Frre, L�ghtnmg Or Explosion
Exclusions c. through h. and �. through n do not apply
to damage by fire, lightning or expiosion to prem�ses
while rented to yau or temporanly occupied by you wrth
perm�ss�on of the owner A separate limd of msurance
appl�es to this coverage as descnbed in Sectron ill —
Limits Of Insurance
COVERAGE B PERSONAL AND ADVERTISING
INJURY LIABILI7Y
�. Insuring Agreement
a. We wdl pay thase sums that the rnsured becomes
legaliy obl�gated fo pay as damages because of
"personal and advertising in�ury" to which th�s
insurance applies We wdI have the nght and duty
to defend the insured agamst any "suit" seeking
those damages However, we will have no duty to
defend the msured againsf any "su�t" seekmg
damages for "personai and advert�sing in�ury" to
which this insurance does not appiy We may, at
our discretion, mvestigate any offense and settle
any claim or "suit" that may result But
(1) The amount we wdl pay far damages is limited
as descnbed m Section Iil — Lim�tS Of
Insurance, and
(2} Our nght and duty to defend end when we have
used up the appiicable lim�t of insurance m the
payment of �udgments or settlements under
Coverages A or B or medical expenses under
Coverage C
No other obligation or liability to pay sums or
perform acts or services is covered unless explic�tly
prov�ded for under Supplementary Payments —
Coverages A and B
b. This insurance applies to "personal and adve�tismg
m�ury" caused by an offense ansing out of your
business but only if the offense was committed in
the "coverage terntory" dunng the policy penod
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2. Exclusions
Th�s insurance does not apply to
a Knowing Violation Of Rights Of Another
"Personal and advertismg in�ury" ansing out of an
offense comm�tted by, at the direction or with the
consent or acquiescence of the �nsured w�th the
expectat�on of inflicting "personal and advertismg
in�ury"
b. Material Published With Knawtedge Of Falsity
"Personal and advertising in�ury" ansing out of oral,
wntten or electronic publicat�on of material, if done
by or at the d�rection of the insured w�th kn�wledge
of its falsrty
c. Materiat Published Prior To Policy Period
"Personal and advert�smg infury" ansing ouf of orai,
wr�tten or electronic publication of matenai whose
firsf publicat�on took place before the beginrnng of
the po(icy penod
d Crimmal Acts
"Personal and advertising m�ury" ar�sing out ofi a
cnmmal acf committed by or at the ditection of the
insured
e. Contractual Liabitity
"Personal and advertising mJury" for which the
insured has assumed liabddy in a contract or
agreement ThiS excluston does not apply to liabiltty
for damages that the insured would have �n the
absence of the contract or agreement
f Breach Of Cantract
"Personal and advertising �n�ury" ans�ng out of a
breach of contract, except an implied contract to use
another's "advertsmg �dea" in your "advertisement"
g. Quality Or Perforrriance Of Goods — Fadure To
Conform To Statements
"Personal and advertis�ng m�ury" arismg out of the
fadure of goods, products or services to conform
with any statement of quality or perFormance made
in your "advertisement"
h. Wrong Description Of Prices
"Personal and advertismg in�ury" ansing out of the
wrong descnption of the pnce of goods, products or
services
Infringement Of Intetlectual Property R�ghts
"Personal and advertising in�ury" ansing out of any
violation of any ►ntellectual property nghts such as
copynght, patent, trademark, trade name, trade
secret, service mark or other designation of ongin
or authentic�ty
However, this exclusion does not apply to
infringement, in your "advert�sement", of
(1) Copynght,
(2} Slogan, uniess the slogan is also a trademark,
trade name, serv�ce mark or other designation
of origm or authenticrty, or
(3) Title of any literary or artistic work
�. Insureds (n Media And Internet Type
Businesses
"Personai and advert�sing m�ury" cammitted by an
msured whose busmess is
{1) Advertismg, broadcastmg, publishing or
telecasting,
(2} Designmg or determining conteni of web sites
for others, or
(3) An Intemet search, access, content or service
prov�der
However, this exclusion does not apply to
Paragraphs 97 a, b and c of "personal and
advertising m�ury" under the Defin�t�ons Sect�on
For the purposes of this exclusion, placing an
"advertisement" for or Imking to others on your web
srte, by itself, is not considered the busmess of
advertising, broadcastmg, publishing artelecasting
k Electronic Chatrooms Or Bulletm Boards
"Personal and advertising m�ury" ansing ouf of an
elecironic chatroom or bulletin boar� the msured
hosts, owns, or over which the msured exercises
control
I Unauthonzed Use Of Another's Name Or
Product
"Personal and advertismg m�ury" ansmg out of the
unauthonzed use of another's name or product in
your e-mail address, domain name or metatags, or
any other simdar tactics to mislead anothers
potential customers
m. Pollution
"Personal and advertising in�ury" ansing out of the
actuai, alieged or threatened d�scharge, dispersal,
seepage, migration, release or escape of
"pollutants" at any time
n Pallution-Related
Any loss, cost or expense ansing out of any
(1) Request, demand, order or statutory or
regulatory requirement ihat any insured or
others test for, monitor, clean up, remove,
contain, treat, detoxify or neutralize, or in any
way respond to, or assess the effects of,
"pollutants", or
(2) Claim or suit by or on behalf of a governmental
author�ty for damages because of testing for,
monitonng, cleaning up, remnving, containing,
treating, detoxifying or neutral�zing, or m any
way respondmg to, or assessing the efFects of,
"pollutants"
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o. War
"Personal and advertising m�ury", however caused,
ansmg, directly or indirectiy, out of
(1) War, mciuding undeclared or civd war,
(2) Warl�ke action by a military force, mcludmg
action in hmdering or defending against an
actual or expected attack, by any govemment,
sovereign or other authorrty using mditary
personnel or other agents, or
(3) InsuRect�on, rebell�on, revolution, usurped power,
or action taken by govemmEntal authonty in
hmdenng or defending against any of these
p Internet Advertisements And Content Of Others
"Personal and advertis�ng in�ury" ansmg out of
(1) An "advertisemenY' for others on your web s►te,
(2) Placmg a l�nk to a web site of oihers on your
web site,
(3) Content, mcluding information, sounds, text,
graphics, or images from a web s�te of others
displayed wrthm a frame or border on your web
s�te, or
(4) Computer code, sofhn►are or programmmg used
to enable
(a) Your web site, or
(b) The presenfation or functionalfty of an
"advertisement" or other content on your
web site
q. R�ght Of Pnvacy Created By Statute
"Personai and advert�smg m�ury" ansing out of the
v�olation of a person's nght of pnvacy created by
any state ar federa( act
Nawever, this exciusion does not apply to iiabd�ty
far damages that the msured would have in the
absence of such state or federai act
r. Violation Of Anti-Trust law
"Personal and advert�sing m�ury" ansing out of a
violation of any ant�-trust law
s Securities
"Personal and advert�sing �n�ury" ansing out of the
fluctuation in pnce or vafue of any stocks, bonds or
oiher secunties
t. Discrimmat�on Or Humiliation
"Personal and advertising in�ury" ansing aut of
d�scnmination or hum�liat�on committed by ar at the
direction of any "executive o�cer", director,
stockholder, partner or member of the insured
u Employment-Related Practices
"Personai and advert�smg m�ury" to
(1 � A person ansrng out of any "employment—
related practices", or
(2j The spouse, chdd, parent, brofher or sister of
that person as a consequence of "personal and
advert�smg m�ury" to that person at whom any
"empioymeni-related practices" are directed
This exclus►on applies
(1) Whether the insured may be liable as an
employer or in any other capacity, and
(2) To any obfigation to share damages with or
repay someone else who must pay damages
because of the rn�ury
v Asbestos
(1j "Personal and advertising in�ury" ansing out of
the "asbestos hazard"
(2) Any damages, �udgments, settlements, loss,
costs or expenses that
(a) May be awarded or mcurred by reason of
any claim or suit allegmg actual or
threatened in�ury or damage of any nature or
kind to persons or property which would not
have occurred in whale or in part but for the
"asbestos hazard",
(b) Arise out of any request, demand, order or
statutary or regulatory requirement that any
�nsured or others test for, mondor, clean up,
remove, encapsulate, contam, treat, detoxify
or neutralize or in any way respond to or
assess the effects of an "asbestos hazard",
or
(c) Anse out of any claim or swt for damages
because of testing for, monitor�ng, cleaning
up, removing, encapsulat►ng, conta�ning,
treating, detoxifying or neutralizmg or in any
way responding to or assessing the eifects
of an "asbestos hazard"
COVERAGE C MEDICAL PAYMENTS
1 Insuring Agreement
a We wdl pay medical expenses as descnbed below
for "boddy in�ury" caused by an acc�dent
(1) On premises you own or rent,
(2) On ways next to premises you own or rent, or
(3) Because of your operations,
provided that
(1j The accident takes place m the "coverage
terntory" and dunng the policy penod,
(2) The expenses are incurred and reported to us
within three years af fhe date of the accident,
and
(3j The in�ured person submits to examinat�on, at
our expense, by physicians of our choice as
often as we reasonably require
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b. We wdl make these payments regardless of fault
These payments wtll not exceed the applicabie timit
of �nsurance We wdl pay reasonable expenses for
(1) First aid administered at the time of an acc�dent,
(2} Necessary medical, surgical, x-ray and dental
servrces, including prosthetic devices, and
(3) Necessary ambulance, hospital, professional
nursing and funerai services
2 Exclusions
We wili nat pay expenses for "boddy m�ury"
a Any Insured
To any insured, except "volunteerworkers"
b. Hired Person
c
d
To a person hired ta do work for or on behalf of any
insured or a tenant of any insured
in�ury On Normally Occupied Premises
To a person in�ured on that part of premises you
own or rent that the person normally occupies
Workers Compensation And Similar Laws
To a person, whether ar not an "employee" of any
insured, if benefrts for the "boddy in�ury" are payab[e
or must be provided under a workers' compensation
or disabdity benefits law or a simdar law
e. Athlet�cs Activities
To a person m�ured whde pract�cing, instructmg or
partic�patmg in any physical exercises or games,
sparts, or athietic contests
f. Products-Completed Operations Hazard
Included withm the "products-completed operations
hazard"
g. Coverage A Exclusions
Excluded under Coverage A
SUPPLEMENTARY PAYMENTS — COVERAGES
A AND B
1 We vrdi pay, with respect to any ciaim we investigate or
settle, or any "suiY' agamst an insured we defend
a. Ail expenses we mcur
b
c.
d
Up to $1,000 for cost of bad bonds required
because of accidents ar traffic law violations ansing
out of the use of any vehicle to which the Bodily
In�ury Liabil�ty Coverage appfies We do not have
ta furnish these bonds
The cost of appeal bond5 or bonds to release
aitachments, but only for bond amounts within the
appiicable limit of msurance We do not have to
furnish these bonds
All reasonable expenses incurred by the insured at
our request fo assist us m the �nvestigation or
defense of the claim or "suit", includ►ng actual loss
of earnings up to $500 a day because of time off
from work
e. All costs taxed agamst the insured in the "suit"
f. Pre�udgment interest awarded against the insured
on thaf part of the �udgment we pay if we make an
offerto pay the applicable limrt of insurance, we wdl
not pay any pre�udgment interest based on that
penoci of time after the offer
g All interest on the fuil amount of any judgment that
accrues after entry of the �udgment and before we
have paid, offered to pay, or deposited m court the
part of the �udgment that is w�thm the applicable
I�mit of insurance
These payments w�ll not reduce fhe i�m�ts of msurance
2 If we defend an �nsured agamst a"suit" and an
indemnitee of the insured is afso named as a party to
the "suiY', we wtil defend thaf ►ndemnitee if all of the
following conditEOns are met
a. The "su�t" agamst the indemnitee seeks damages
for which the insured has assumed the i�abdity of
the indemnitee in a contract or agreement that is an
"insured contract",
b This msurance applies to such liab�idy assumed by
the insured,
c
J
e
The obligat�on to defend, or the cost of the defense
of, fhat indemn�tee, has also been assumed by the
msured in the same "insured contract",
The allegat�ans in the "su�t" and the information we
know about the "accurrence" are such that no
conflict appears to exist between the interests of
the insured and the interests of the indemnitee,
The indemnrtee and the insured ask us to conduct
and control the defense of that indemrntee against
such "su�f" and agree that we can assign the same
counsel to defend the insured and the indemndee,
and
f The indemndee
(1} Agrees m wrtfing to
(a) Cooperate wdh us in the investigation,
settlement or defense of the "suit",
(b) Immediately send us copies of any
demands, notices, summonses or legai
papers received m connection wrth the "suit",
(c) Notify any other insurer whose coverage is
avadable to the indemrntee, and
{d) Cooperate wdh us w�th respect to
coordinat�ng other appitcab(e insurance
avadable to the mdemrnfee, and
(2) Provides us with written authonzat�on to
(a) Obtain records and other �nformation related
to the "su�t", and
(b) Conduct and control the defense of the
indemn�tee m such "swt"
So long as the above conditions are met, attomeys'
fees incurred by us in the defense of that mdemn�tee,
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necessary I�t�gation expenses incurred by us and
necessary litigation expenses incurred by the
mdemnitee at our request will be pa�d as
Supplementary Payments Notw�thstanding the
provisions of Paragraph Z.b (2) of Section I—
Coverage A— Boddy In�ury And Property Damage
Liabdity, such payments will nof be deemed to be
damages for "bodily m�ury" and "property damage" and
will not reduce the fimrts of insurance
Our obl�gation to defend an �nsured's �ndemnrtee and
to pay for attorneys' fees and necessary lit�gation
expenses as Supplementary Payments ends when
a We have used up the appl�cable limtt of msurance
�n the payment of Judgments or settlements, or
b The cond�tions set forth above, or the terms of the
agreement descnbed in Paragraph f. above, are no
longer met
SECTION II — WHO IS AN INSURED
1 If you are designated m the Declarations as
a An rndividual, you and your spouse are insureds,
but only with respect to the conduct of a busmess
of which you are the sole awner
b A partnership or �oint venture, you are an msured
Your members, your partners, and their spouses
are also msureds, but only w�th respect to the
conduct of your busmess
c A I�mited habtl�ty campany, you are an msured
Your members are also msureds, but only with
respect to the conduct of your busmess Your
managers are insureds, but only with respect to
their duties as your managers
d An organization other than a partnersh�p, joint
venture or fimited liabd�ty company, you are an
insured Your "execut�ve officers" and directors are
insureds, but only with respect to their duties as
your officers or directors Your stockhalders are
also insureds, but only with respect to their liabdity
as stockholders
e A trust, you are an insured Your trustees are also
msureds, but only wtth respect to their dut�es as
trustees
2 Each of the followmg is also an msured
a. Emptoyees and Volunteer workers
Your "volunteer warkers" only whde performing
duties related to the conduct of your business, or
your "employees", other than either your "execu#ive
officers" (if you are an organizat�on o#her than a
partnership, �oint venture ar limded liabdtty
company) ar your managers (�f you are a limded
liabdity company), buf vnly for acts with►n the scope
of their employment by you or while performmg
duties related to the conduct of your business
However, none of these "employees" or "volunteer
workers" are insureds for
(1� "Baddy in�ury" or "personal and advertising
inlury"
(a} To you, to your partners or members (if you
are a partnership or �oint venfure}, to your
members Qf you are a Iimited liabdity
company), to a co-"employee" whi(e m the
course of his or her employment or
perFormmg dut►es related to the conduct af
your business, or to your other "volunteer
workers" whife performmg duties related to
the conduct af your business,
(b) To the spouse, chdd, parent, brother or sister
of that co-"employee" or that "volunteer
worker" as a consequence of Paragraph
(1)(a} above,
(c) For which there is any obligation to share
damages w�th or repay someone else who
must pay damages because of the m�ury
descnbed m Paragraphs (1)(a) or (b) above,
or
(d) Arismg out of his or her providing or failing to
provide professional health care serv�ces
If you are nof in the business of providing
professionaf health care services, Paragraph (d)
does not apply to any nurse, emergency
medical techrncian or paramedic employed by
you to provide such serv�ces
(2} "Property damage" to property
(a) Owned, occupied or used by,
(b) Rented to, in the care, custody or control of,
or over which physical control is being
exercised for any purpose by '
you, any of your "employees", "volunteer
workers", any partner or member (if you are a
partnership or �omt venture), or any member �f
you are a timited liabdity company)
b Real Estate Manager
Any person (other than your "employee" or
"volunteer worker"), or any organization while
acting as yaur real estate manager
c. Temporary Custodians of Your Property
Any person or orgamzation havmg proper
temporary custody of your property if you die, but
oniy
(1) With respect to liability ar�sing out of the
mamtenance or use of that property, and
(2) Untd your legal representative has been
appomted
d Legal Representative If You Die
Your legal representat�ve if you die, but only w�th
respecf to duties as such That representative wdl
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have all your nghts and duties under this Coverage
Part
e Unnamed Subsid�ary
Any subsidiary, and subsidiary thereof, of yours
which is a legaily incorporafed ent►ty of which you
own a financial interest of more than 5Q% of the
votmg stock on the effective date of the Coverage
Part
The msurance afforded herem for any subsidiary
not named m this Coverage Part as a named
msured does not apply to in�ury or damage with
respect to wh�ch an �nsured under fhis Coverage
Part is aiso an insured under another policy or
would be an insured under such poltcy hut for rfs
term�nation ar the exhaustion of �ts l�m�ts of
insurance
3 Newly Acquired or Formed Orgarnzation
Any organization you newly acquire or form, otherthan
a partnership, �oint venture or limited liabd�ty company,
and over which you ma�ntatn financial interest of more
than 50°/a of the votmg stock, will qualify as a Named
Insured if there is no other similar �nsurance available
to that organizat►on However
a Coverage under this prav�sion is afforded only unt�i
the 180th day after you acquire or form the
organ�zat�on or the end of the policy penod,
whlchever is earlier,
b Coverage A does not apply to "bodily m�ury" or
"property damage" that occurred before you
acqwred or formed the organizatron, and
c. Coverage B does not apply ta "personal and
advertismg m�ury" ansing out of an offense
commrtted before you acquired ar formed the
organization
4 Mobile Equipment
W�th respect to "mobile equipment" registered m your
name under any motor vehicle registration faw, any
person is an ►nsured whde dnving such equipment
along a pubiic highway w�th your perm�ssion Any other
person or organizat�on responsible for the conduct of
such person is also an insured, but only with respect to
liability ansing out of the operation of the equipment,
and only if no other insurance of any wnd is availabie
to that person or organization far this I�abdity However,
no person or organization is an msured wifh respect to
a. "Bodily in�ury" to a co-"employee" of the person
dnving the equipment, or
b. "Property damage" to property owned by, rented to,
►n the charge of or occupied by you or fhe employer
of any person who �s an insured under th�s
provision
5 Nonowned Watercraft
Wrth respect to watercraft you do not own that �s less
than 51 feet long and is not being used to carry
persons for a charge, any person is an insured whrle
operatmg such watercraft wrth your permission Any
other person or organization responsible for the
conduct of such person is also an msured, but only
with respect to liabdity ansmg out of the operation of
the watercraft, and only �f no other insurance of any
kind is avadable to that person or organ¢ation for this
liabildy
However, no person or organization is an insured w�th
respect to
a"Boddy in�ury" to a co-"employee" of the person
operatmg the watercraft, or
b. "Property damage" to property owned by, rented to,
in the charge of or occupied by you orthe employer
of any person who is an msured under this
provision
6. Additiona{ insureds When Required By Wntten
Contract, Written Agreement Or Permit
The fo[lawing person(s) or organization(s) are an
additional ►nsured when you have agreed, in a written
contract, wr�ten agreement or because of a permit
issued by a state or poldical subdivision, that such
person or organization be added as an addrtional
insured on your policy, provided the m�ury or damage
occurs subsequeni to the execution of the contract or
agreement
A person or organization is an addrtional insured under
th�s provision only for that penod of time required by
the contract or agreement
However, no such person or organization is an insured
under this provision if such person or organization is
inciuded as an msured by an endorsernent issued by
us and made a part ofthis Coverage Part
a. Vendors
Any person(s) or organization(s) (refierred to below
as vendor), but only w►th respect to "bodily in�ury"
or "property damage" ansing out of "your products"
which are distnbuted or sold m the regular course
of the vendors busmess and only if this Caverage
Part provides coverage for "boddy in�ury" or
"property damage" �ncluded withm the "products-
completed operations hazard"
(1) The insurance afforded the vendor is sub�ect to
the following additional exclusions
This insurance does not apply to
(a) "Boddy in�ury" or "property damage" for
which the vendor is obligated to pay
damages by reason of the assumption of
I�ability m a contract or agreement This
exclusion does not apply to liab�lrty for
damages that the vendor would have m the
absence of the contract or agreement,
Page 10 of 18 HG 00 01 06 05
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(b) Any express warranty unaufhonzed by you,
(c) Any physical or chemical change in the
product made mtentionally by the vendor,
(d) Repackaging, except when unpacked solely
for the purpose of inspection, demonstration,
tesfing, or the substitution of parts under
instructions from the manufacturer, and then
repackaged in the onginat contamer,
(e) Any fadure to make such inspections,
ad�ustments, tests or servicmg as the vendor
has agreed to make or normally unde�takes
to make in the usual course of busmess, m
connection wrth the distnbution or sale of the
products,
(fJ Demonstration, installat�an, servicing or
repair operations, except such operations
performed at the vendor's premises in
connection with the sale of the product,
(g) Products which, after distnbut�on or sale by
you, have been labeled or refabeled or used
as a contamer, part or mgredient of any
other thmg or substance by or for the
vendor, or
(h) "Boddy m�ury" or "property damage" ansmg
out of the sole negligence of the vendor for
its own acts or omissions or those of �ts
employees or anyone else actmg on its
behalf However, this exclusion does not
apply to
{iy The exceptions contained in Sub-
paragraphs (d) or (fl, or
(u) Such mspections, ad�ustments, tests or
servicing as the vendor has agreed to
make or nonnally undertakes to make in
the usual course of business, in
connection w�th the dtstnbution or sale of
the products
(2) This msurance does not apply to any msured
pe�son or organization, irom whom you have
acquired such products, or any mgredient, part
ar contamer, entenng mto, accompanying or
containing such products
b. Lessors of Equipment
(1) Any person or organ�zation from whom you
lease equrpment, but only w�th respecf to their
I�abdity for "bodily in�ury", "property damage" or
"personal and advertising in�ury" caused, �n
whole or in part, by your maintenance, operation
or use of equ�pment leased to you by such
person or organization
{2) With respect to the insurance afforded to these
addrtional insureds this msurance does not
apply to any "occurrence" which takes place
afterthe equipment lease expires
HG 00 01 06 05
c. Lessors of Land or Premises
Any person or organization from whom you lease
land or premises, but onfy w�th respecf to liabif�ty
ansing out of the ownership, maintenance or use of
that part of the land or premises leased to you
With respect to the msurance afforded these
addrtional msureds the followmg additional
excius�ons apply
This insurance does not apply to
1 Any "occurrence" which takes place after you
cease to lease that land, or
2 Structura( alterations, new construction or
demolition operations performed by or on behalf
of such per�on or orgarnzat�an
d Architects, Engineers or Surveyors
Any architecf, engineer, or surveyor, but only wifh
respect to liabddy for "boddy m�ury", "property
damage" or "personal and advertising in�ury"
caused, in whole or m part, by your acts or
om�ssions or the acts or omissions of those acting
on your behalf
(1) In connection with your prem�ses, or
(2) In the perFormance of your ongoing operaUons
performed by you or on your behalf
With respect to the �nsurance afforded these
addiiional insureds, the following add�tional
excJusion appl►es
This �nsurance does not apply to "bodily m�ury",
"property damage" or "personal and adve�tismg
in�ury" ansmg out of the rendenng of or the fadure
to render any professional serv�ces by or for you,
including
1 The prepanng, approv►ng, or failing to prepare
or approve, maps, shop drawings, opin�ons,
reports, surveys, field orders, change orders or
drawings and specificat�ons, or
2. Supervisory, mspection, architectural or
engineering activities
e Permits Issued By State Or Political
Subdivisions
Any state or political subdivision, but only wdh
respect to operations pertormed by you or on your
behalf for which the state or political subdivision
has issued a permit ,
With respect to the insurance afforded these
addr�ional insureds, this insurance does not apply
to
(1) "Bod�ly in�ury", "property damage" or "personal
and advertrsmg in�ury" ansmg out of operations
perFormed for the state or murncipal�ty, or
(2) "Bodily m�ury" or "property damage" included
w�thm the "products-completed operat�ons
hazard"
Page 11 of 18
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f. Any Other Party
Any other person or organization who is not an
insured under Paragraphs a through e above, but
only w�th respect to I�abilrty for "bodify in�ury",
"property damage" or "personal and advertising
tn�ury" caused, in whole or m part, by your acts or
omissions or the acts or om�ss�ons of those acting
on your behalf
{1) In the performance of your ongo�ng operat�ons,
(2) In connection with your premises owned by or
rented to you, or
(3} In connection w�th "your work" and rncluded
w�thin the "producfs-completed operations
hazard", but only if
(a) The wrrtten contract or agreement requires
you to provide such coverage to such
addit�onal �nsured, and
(b) This Coverage Part provides coverage for
"bodi4y m)ury" or "property damage" included
wrthin the "products-completed operahons
h aza rd"
With respect to the rnsurance afforded to these
additional insureds, this msurance does not appiy
ta
"Bodily in�ury", "property damage" or "persanal and
adverfising in�ury" ansing oui of the rendenng of, or
the failure to render, any professional architectural,
engineering or surveying services, incfuding
(1) The prepanng, approving, or fading to prepare
or approve, maps, shop drawmgs, opinions,
reports, surveys, field orders, change orders or
draw�ngs and specificat�ans, ar
(2) Superv�sory, mspection, architectural or
engmeenng act�vities
The limits of msurance that apply to additional insureds
under this prov�sion is descnbed m Section I1{ — L�m�ts
Ofinsurance
How this �nsurance appf�es when other insurance is
avadable to the addd�onaf insured is descnbed in the
Other Insurance Cond�tton m Section IV — Commercial
General Liabd�ty Conddions
No person or orgamzation rs an insured wrth respect to the
conduct of any current or past partnership, �oint venture or
limited liability company that is not shown as a Named
{nsured �n the Declarat�ons
SECTION 111— LIMITS OF INSURANCE
1 The Most We will Pay
The Limtts of Insurance shown in the Declarations and
the rules below fix the most we wdl pay regardless of
the number of
a tnsureds,
b. Clafms matle or "sufts" braught, or
c Persons or organiZations mak�ng claims or brmgmg
"suits"
2 General Aggregate Umit
The General Aggregate Limd is the most we w�ll pay
forthe sum o€
a Medical expenses under Coverage C,
b. Damages under Coverage A, except damages
because of "boddy in�ury" or "property damage"
mcluded in the "products-c�mpleted operat�ons
hazard", and
c Damages under Coverage B
3 Products-Completed Operations Aggregate Limit
7he Products-Completed Operations Aggregate L�m�t
is the most we wdl pay under Coverage A for damages
because of "boddy in�ury" and "property damage"
included m the "products-completed operations
hazard"
4. Personal and Advertising Injury Limit
Sub�ect to 2. above, the Persona! and Advertising
In�ury Lim�t is the most we will pay under Coverage B
for the sum of ail damages because of ali "personal
and advert�smg mlury" sustained by any one persan or
organEZation
5. Each Occurrence Limit
Sub�ect to 2. or 3. abave, whichever appl�es, the Each
Occurrence Lim�t is the most we wdi pay for the sum
of
a. Damages under Coverage A, and
b Medical expenses under Coverage C
because of all "boddy in�ury" and "property damage"
ansing out of any one "occurrence"
6. Damage To Premises Rented To You Limit
SubJect to 5 above, the Damage To Premises Rented
To You Lim�t is the most we wdl pay under Coverage A
for damages because of "property damage" to any one
prem�ses, wh�le rented to you, or m the case of
damage by fire, i�ghtning or explosion, while rented to
yau or temporarily occupied by you with permission of
the owner
In the case of damage by fire, [ightmng or explosion,
the Damage to Premises Rented To You Limrt applies
to all damage proximately caused by the same event,
whether such damage results from fire, lightning or
explosion or any combination of these.
7. Medical Expense Limit
Sub�ect to 5 above, the Medical Expense Ltmit is the
most we wdl pay under Coverage C for all medical
expenses because of "bodily in�ury" sustained by any
one person
8. How Limits Apply To Additional Insureds
If you have agreed m a wr�ten contract ar wrrtten
agreement that another person or organization be
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added as an addifional msured an your policy, the
most we wdl pay on behalf of such additional insured is
the fesser of
a. The limits of �nsurance specified m the wntten
contract or wntten agreement, or
b The Limits of Insurance shown in the Declarations
Such amount shail be a part of and not in addition to
L�mits of Insurance shown in the Declarat�ons and
descnbed in this Section
The Limits of Insurance of this Coverage Part apply
separately to each consecutive annual period and to any
remammg penod of less than 12 months, starting wifh the
beginrnng of the pol�cy penod shown in the Declarations,
unless the policy penod is extended after �ssuance for an
addrtional per�od of less than 12 monfhs In that case, the
additionai penod will be deemed part of the last preced�ng
per�od for purposes of determmmg the Limits of Insurance
SECTION IV — COMMERCIAL GENERAL LIABIL(N
CONDITIONS
1 Bankruptcy
Bankruptcy or msolvency of the msured or af the
insured's estate wdl not relieve us of our obligat�ons
underthis Coverage Part
2 Duties In The Event Of Occurrence, Offense, Claim
Or Suit
a Notice Of Occurrence Or Offense
You or any additionaf insured must see to it that we
are notrfied as soon as practicable of an
"occurrence" or an offense which may resuit in a
claim To the extent possible, notice should mclude
(1) How, when and where the "occurrence" or
offense took place,
(2} The names and addresses of any in�ured
persons and w�tnesses, and
(3) The nature and location of any in�ury or damage
ansing out of the "occurrence" or offense
b. Notice Of Claim
If a claim is made or "sud" is brought agamst any
msured, you or any additional msured must�
(1j Immediatefy record the specifics of the claim or
"suit" and the date received, and
(2) Not�fy us as soon as pract�cable
You or any add�t�onal msured must see fo it that we
receive wntten noUce of the claim or "su�t" as soon
as practicable
c. Assistance And Cooperation Of The Insured
You and any other mvolved insured must
(1) Immed�ately send us cop►es of any demands,
not►ces, summonses or legal papers received �n
connection wrth the cfaim or "su�t",
(2) Authonze us to obtam records and other
mformation,
(3) Cooperate with us in the investigation or
settiement of the claim or defense against the
"suit", and
(4) Assist us, upon our request, in the enforcement of
any nght agarnst any person or orgarnzation which
may be liable to the msured because of in�ury or
damage to which this msurance may also apply
d Obligat�ons At The Insureds Own Cost
No msured w�ll, except at that insured's own cost,
voluntanly make a payment, assume any
obligation, or mcur any expense, other than for first
aid, w�thout our consent
e Add[tional insureds Other Insurance
Ef we cover a clatm or "su�t" under this Coverage
Part that may also be covered by other insurance
avadabie to an addit�onai insured, such add�tionai
insured must subm�t such clatm or "suit" to the
other insurer for defense and mdemndy
However, th�s prov�sion does not apply to the
extent that you have agreed in a wr�ten contract or
written agreement that this insurance is primary
and non-confnbutory w�th the addit�onal insured's
own msurance
f. Knowledge Of An Occurrence, Offense, Cla�m
Or Suit
Paragraphs a. and b apply to you or to any
add�tional insured only when such "occurrence",
offense, claim or "suiY' is known to
(1) You or any additional insured that �s an
indiv�dual,
(2) Any partner, if you or an add�tional insured is a
partnership,
(3) Any manager, if you or an add�tionai insured is a
limited liabdity company,
(4) Any "executive officer" or insurance manager, �f
you or an additional �nsured is a corporation,
+5) Any trustee, �f you or an add�tianal �nsured is a
trust, or
(6) Any elected or appomted offic�al, if you or an
addd�onal insured is a political subdivision or
public entrty
This duty applies separately to you and any additional
msured
3. Legal Actian Against Us
No person or organ�zat�on has a nght under th�s
Coverage Part
a To �oin us as a party or otherwise bnng us into a
"su�t" asking for damages from an insured, or
b To sue us on this Coverage Part unless all of its
terms have been fully complied with
A person or organization may sue us to recover on an
agreed settlemeni or on a final �udgment against an
�nsured, but we witl not be habie for damages that are
not payable under the terms of this Coverage Part or
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that are m excess of the app(icable fim�t of msurance
An agreed settlement means a settiement and release
of liabd�ty signed by us, the msured and the claimant or
the Gaimant's legal representative
4 Otherinsurance
if ofher valid and collectible msurance is ava�fable to
the msured for a(oss we cover under Coverages A or
B of this Coverage Part, our obiigations are lim�ted as
follovrs
a Primary Insurance
This insurance is pnmary except when b befow
applies If oiher �nsurance is also pnmary, we will
share wrth all that other msurance by the method
described �n c. befow
b Excess Insurance
This insurance is excess over any of the other
insurance, whether pnmary, excess, cont�ngent or
on any other basis
(1) Your Work
That �s Fire, Extended Coverage, Bu�ider's Risk,
Installation Risk or simdar coverage for "your
work",
(2) Premises Rented To You
That is fire, lightning or explosion insurance for
premises rented to you or temporarily occupied
by you w�th permission of the owner,
{3) Tenant Liab�lity
That is msurance purchased by you to cover
your I�abd�ty as a tenant for "property damage"
to premises rented to you or temporanly
occupied by you with permiss�on of the owner,
(4} Aircraft, Aufo Or Watercraft
If the loss arises out of the mamtenance or use
of aircraft, "autos" or watercraft to ihe extent not
sub�ect to Exclusion g of Section I— Coverage
A— Boddy In�ury And Property Damage Liabdity,
(5} Property Damage to Borrowed Equipment Or
Use Of Elevators
if the loss anses out of "property damage" to
borrowed equipment or the use of elevators to
fhe extent nat subject to Exclus�on � of Sedion I
- Coverage A- Bod�ly fn�ury And Property
Damage Liability,
(fi) When You Are Added As An Additional
Insured To Other Insurance
Any other insurance available to you covenng
liabdity for damages arising oui of the premises
or operations, or products and completed
operat�ons, for which you have been added as
an addftional msured by that insurance, or
(7) When You Add Others As An Additional
Insured To This Insurance
Any other �nsurance avaiiable to an add►t�onal
insured
However, the following provis[ons apply to other
insurance avadable to any person or
organEZation who �s an addrtional insured under
this coverage part
(a) Primary Insurance When Required By
Contract
Th�s msurance is pnmary if you have agreed
m a written contract ar wniten agreement
that this msurance be pnmary If other
msurance is also pnmary, we will share with
all that other insurance by the method
descnbed in c below
(b} primary And Non-Contributory To Other
Insurance When Requ�red By Contract
ff you have agreed m a w�rtten contract,
wrrtten agreement, or permrt that th�s
msurance �s pnmary and non-contnbutory
wrth the adddional insured's own insurance,
this �nsurance is pnmary and we wdl not
seek contribut�on from that other msurance
Paragraphs (aj and (b) do not appfy to other
msurance to which the add�tional insured has
been added as an additional insured
When this msurance is excess, we wdl have no
duty under Coverages A or B to defend the msured
against any "suit" if any other msurer has a duty to
defend the �nsured agamst thaf "suit" If no other
insurer defends, we will undertake to do so, but we
wdl be ent�tled to the insured's nghts agamst all
those other insurers
When this msurance is excess over other
insurance, we w�ll pay only our share ofthe amaunt
of the loss, if any, that exceeds the sum of
(1) The total amount that ali such other insurance
woufd pay for the loss m the absence of this
insurance, and
{2) The totaf af ali deducbbie and seff-msured
amounts under all that other insurance
We wdl share the remainmg ioss, �f any, with any
other msurance that is not descnbed m this Excess
Insurance provision and was not bought specifically
to apply m excess of the Limits of insurance shown
�n the Declarations of fhis Coverage Part
c Method Of Sharing
if all of the other insurance permits confr�bution by
equal shares, we wdl follow this method also Under
this approach each insurer contnbutes equal
amounts untd it has paid ►ts appl�cable lim�t af
insurance or none of the loss remams, whichever
comes first
Page 14 af 18 HG 00 01 06 05
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If any of the other insurance does not perm�t
contnbut�on by equal shares, we wdl contr�bute by
limits Under this method, each msurer's share is
based an the rat�o of its applicable lim�t of
msurance to the total applicable limits of msurance
of ail msurers
5. Prem�um Aud�t
a We wdl compute ail premwms for fhis Coverage
Part m accordance with our rules and rates
b Premium shown �n this Coverage Part as advance
premwm is a depos�t premium only At fhe close of
each aud�t penod we will compute the earned
premium for that penod and send notice to the first
Named Insured 7he due date for audd and
retrospectwe premiums is the date shown as the
due date on the bdi If the sum of the advance and
audit premiums paid for the polrcy penod is greater
than the earned premwm, we wdl retum the excess
to the first Named Insured
c The first Named Insured must keep records of fhe
informat�on we need for premium computation, and
send us copies at such times as we may request
6. Representations
a When You Accept This Pol�cy
7
8
By accepting this policy, you agree
(1} The statements m the Declarations are accurate
and complete,
(2) Those statements are based upon
representations you made to us, and
{3) We have issued this policy �n reliance upon your
representations
b. Unintentional Faiiure 'fo Disclose Hazards
If umntentionaliy you should fad to disciose all
hazards relating to the conduct of your busme5s
that exist at the mcepfion date of this Coverage
Part, we shall not deny coverage under this
Coverage Part because of 5uch fadure
Separation Of Insureds
Except with respect to the Limits of Insurance, and any
rights or duties specifically assigned m this Coverage
Part to the first Named Insured, this insurance applies
a. As if each Named Insured were the only Named
Insured, and
b. Separately to each insured against whom claim is
made or "suiY' ts brought
Transfer Of R�ghts Of Recovery Against Others Ta
Us
a. Transfer of Rights Of Recavery
If the msured has rights to recover ali or part of any
payment, ►ncluding Supplementary Payments, we
have made under this Coverage Part, those rights
are transferred to us The msured must do nothing
after loss to impair them At our request, the
NG00010605
insured wd{ bring "suiY' or transferthose r�ghts to us
and help us enforce them
b Wa�ver Of Rights Of Recovery (Waiver Of
Subrogation}
If the msured has waived any nghts of recovery
against any person or organization for all or part of
any payment, including Supplementary Payments,
we have made under this Coverage Part, we also
waive that r►ght, prov�ded the insured waived their
rights of recovery against such person or
organization �n a contract, agreement or perm�t thaf
was executed pr�or to the m�ury or damage
9. When We Do Not Renew
If we decide not to renew this Coverage Part, we will
ma�l or deliver to the first Named Insured shown m the
Declarations wntten notice of the nonrenewal not less
than 30 days before the expiration date
If notice is matled, proaf of mading wtll be sufficient
praof of notice
SECTION V — DEFINITIONS
9
"Advertisement" means the widespread public
dissemination of informat�on or images that has the
purpose of mducing the sale of goods, products or
services through
a (1) Radio,
(2) Telev�sion,
{3) Bdlboard,
(4} Magazine,
{5) Newspaper, or
b Any other publication fhat is given widespread
public distribuUon
However, "advertisement" does not mciude
a The design, prmted matenal, informat�on or images
confained in, on or upon the packagmg or labeling
of any goods or products, or
b An interact�ve conversation between or among
persons through a computer network
"Advertismg �dea" means any �dea for an
"advertisement"
"Asbestos hazard" means an exposure or threat of
exposure to fhe actual or aileged properties of
asbestos and mcludes the mere presence of asbestos
in any form
"Auto" means a land mator veh�cle, trader or sem�trader
des�gned for travel an pubiic roads, mc(uding any
attached machmery or equipment But "auto" does not
include "mobile equipment"
"Bodily �n�ury" means physical
a. In�ury,
b. Sickness, or
c. Disease
sustained by a person and, if ans�ng out of the above,
mental anguish or death at any time
E
3
4
�
Page 15 0# 18
'Hokkaido Dnllmg Inc
22UUVTA2250
6 "Coverage territory" means
a. The United States of Amenca (ncluding its temtones
and possessons), Puerto Rico and Canada,
b. Intemat►onal waters or airspace, but only �f the
in�ury or damage occurs in the course of trave[ or
transpartation between any places mcluded in a.
above, or
c Ail other pa�ts of the world if the in�ury or damage
anses out of
(1j Goods or products made or sold by you m the
terntory described m a. above,
(Z) The act�v�ties of a person whose home �s in the
terntory descnbed in a. above, but is away for a
short time on your business, or
(3j "Personal and advertising m�ury" offenses that
take place through the Intemet or sim0ar
electronic means of commurncation
provided the msured's responsibdity to pay damages is
determined in the United States of Amenca (includmg its
temtones and possess�ons), Puerto Rico or Canada, in a
"suit" on the ments according to the substantive law m
such temtory or in a settlement we agree to
7 "Employee" includes a "leased worker" "Employee"
does not include a"temporary worEcer"
8 "Emp(ayment-Related Practices" means
a Refusaf to employ a person,
b Termination of a person's employment, or
c Employment-re(ated practices, policies, acts or
omissions, such as coercron, demot�on, evaluation,
reassignment, d�scipline, defamation, harassment,
humdiatton or discnmination d�rected at a person
9"Executive officer" means a person holding any of the
officer posrtions created by your charter, constitution,
by-laws or any other s�milar goveming document
10."Hostde fire" means one which becomes uncontrollable
or breaks out from where ►t was mtended to be
11 "Impaired property" means tangible property, other
than "your product" or "your work", that cannot be used
or is less usefuf because
a It mcorporates "your producY' or "your work" that is
known or thought to be defective, deficient,
madequate or dangerous, or
b You have faded to fulfiil the teRns of a contract or
agreement,
if such property can be restored to use by
a. The repa�r, repiacement, ad�ustment or removal of
"your product" or "your work", or
b. Your fulfillmg the terms of the contract or agreement
12 "Insured contract" means
a. A contraci for a lease of premises However, that
portion of the contract for a lease of premises that
tndemnifies any person or organization for damage
by fire, lightrnng or explosion to premises whiie
rented to you or temporardy occup�ed by you with
permission of the owner is sub�ect to the Damage
to Premises Rented To You Lim�t descnbed m
Section I11— Limits of fnsurance,
b. A sidetrack agreement,
c. Any easement or license agreement, including an
easement or license agreement in connection with
construction or demolition operat�ons on or w�thm
50 feet of a railroad,
d. An obligation, as reqwred by ordinance, fo
indemnify a munic�pal�ty, except m connection w�th
work for a munic�pality,
e An elevator mamtenance agreement,
f. That part of any other contract or agreement
pertaining to your busmess (�ncluding an
mdemnification of a mumcipality m connection with
work performed for a murncipal�ty} under which you
assume the tort liabii�ty of another party to pay for
"boddy in�ury" or "property damage" to a third
person ar organization, provided the "bodily in�ury"
or "property damage" is caused, in whole or in part,
by you or by those acting on your behalf Tort
liabihty means a liabddy that woufd be imposed by
law m the absence af any contract or agreement
Paragraph f includes thaf part of any contract or
agreement that indemn�fies a radroad for "bodily
in�ury" or "property damage" ansmg out of
cons#ruction or demol►tion operat�ons, w�thm 50 feet
of any railroad property and affecting any radroad
bridge or trestle, tracks, road-beds, tunnel,
underpass or crossi�g
However, Paragraph f does not mclude that part of
any contract or agreement.
(9) That indemnifies an arch�tect, engmeer or
surveyor for m�ury or damage ansing out of
(a) Prepanng, approving, or fad�ng to prepare or
approve, maps, shop drawings, opinions,
reports, surveys, field orders, change orders
or drawings and specifications, or
(b) G�ving directions or instructions, or fadmg to
g�ve them, if that is the pnmary cause of the
m�ury or damage, or
(2) Unde� which the �nsured, if an arch�tect, engmeer
or surveyor, assumes liabdrty for an m�ury or
damage ansmg out of fhe insured's rendenng or
fa�lure to render proiessionai services, �ncluding
those listed m(1) above and supervisory,
inspection, architectural or engmeenng activities
13. "Leased worker" means a person leased to you by a
labor leasing firm under an agreement between you
and the fabor feasing firm, to perform dut�es related to
the conduct of your business "Leased worker" does
not include a "femporary worker'
14 "Loading or unloading" means the handling of property
a. After it is moved from the place where it is accepted
for movement into or or�o an aircraft, watercraft or
"auto",
Page 16 of 18 HG 00 01 06 05
p
Fiokkaido Drdiing Inc
22UUVTA2250
b. While it is in or on an aircraft, watercraft or "auto",
or
c Whde it is being moved from an aircraft, watercraft
or "auto" to the place where it [s finaily del�vered,
but "loadmg or unloadmg" does not include the
movement of property by means of a mecharncal
device, other than a hand truck, that is not attached to
the aircraft, watercraft or "auto"
'i5 "Mobde equipment" means any of the following types
of land vehicles, including any attached machmery or
equipment
a. Bulldozers, farm machinery, forklifts and ather
veh�cfes designed for use pnncipally off public
roads,
b Vehicles maintained for use sofely on or next to
premises you own or rent,
c Vehicies that travel on crawlertreads,
d Vehicles, whether seif-propeEled or not, mainta►ned
pnmanly to provide mob�l�ty to permanently
mounted
(1� Power cranes, shovels, loaders, diggers or
drdls, or
{2j Road construction or resurfacmg equipment
such as graders, scrapers or rollers,
e Veh�cies not described in a, b., c, or d. above that
are not self-propelled and are maintained pnmardy
to provide mobdity to permanently attached
equipment of the folfowing types
{1) Air compressors, pumps and generators,
includmg spraying, weldmg, bu�lding clearnng,
geophysical exploration, lighfrng and well
servictng equipmenf, or
(2) Cherry pickers and similar devices used to raise
or lower workers,
f Vehicles not descnbed �n a, b., c or d above
maintamed pnmardy for purposes other than the
transportation of per�ons or cargo
However, se[f-propeNed vehicles wrth the following
types of permanently attached equipment are not
"mobile equipment" buf wtll be considered "aufos"
(1) Equipment, of at least 1,000 pounds gross
vehicle weight, designed primanly for
(a} Snow removal,
(b) Road maintenance, but not construction or
resurfacing, or
(c) Street cleanmg,
(2j Cherry pickers and sim�lar dev�ces mounted on
automobde or truck chassis and used ta raise or
fower workers, and
(3) Air compressors, pumps and generatars,
inciuding spraying, weidmg, Duriding cfeaning,
geophysical expforation, lighimg and well
serv►cing equipment
HG 00 01 06 05
16."Occurrence" means an accident, includ�ng contmuous
or repeated exposure to substantialfy the same general
harmful conditions
17 "Personal and advertising in�ury" means in�ury,
mcluding consequentiai "boddy in�ury", ansing out of
one or more of the follawing offenses
a False arrest, detention or imprlsonment,
b. Malicious prosecution,
c The wrongful eviction from, wrongful entry into, or
mvasion af the nght of private occupancy of a room,
dwellmg or premises that a person occupies,
committed by or on behaff of �ts owner, landlord or
lessor,
d. Oral, wrrtten or elect�onic publication of matenal
that slanders or I�bels a person or organization or
disparages a person's or organ�zation's goods,
products or serv�ces,
e. Oral, wr�ten or electronic publication of matenal
that violates a person's nght of privacy,
f. Copying, m your "advert�semenY', a person's or
organization's "adve�tismg idea" or style of
"advertisemenY',
g Infnngement of copynght, slogan, or t�tle af any
literary or artisfic work, in your "advertisemenY', or
h Discnmination or humdiation that resufts in inaury to
the feelings or reputation of a natural person
98 "Pollutants" mean any solid, liqu�d, gaseous or thermal
imtant or contaminant, including smake, vapor, soot,
fumes, acids, alkalis, chemicals and waste Waste
�ncludes matenals to be recycled, reconddioned or
reclaimed
19."Products-completed operations hazard"
a Includes all "bodily En�ury" and "property damage"
occurring away from premises you own or rent and
ansmg out of "your product" or "yourwork" except
(9) Products that are sti11 in your physical
possession, or
(2y Work that has not yet 6een completed or
abandoned However, "your work" wdl be
deemed compieted at the earliest of the
followmg times
{a) When all of the work called for in your
contract has been compieted
(b) When ali of the work to be done at the �ob
s�te has been completed if your contract
calls forwork at more than one�ob site
(c} When that part of the work done at a �ob site
has been put to its mtended use by any
person or organizatton other than another
contractor ar subcontractor workmg on the
same pro�ect
Work that may need service, maintenance,
correct►on, repair or replacemenf, but which �s
otherwise compfete, wdl be treated as
completed
Page 17 of 18
�
•Hokkaido Drilling Inc
22UUVTA2250
b Does not include "boddy m�ury" or "property
damage" ansing out of
(1� The transportation of property, unless the
m�ury or damage arises out of a condiUon m or
on a vehicle not owned or operated by you,
and that candition was created by the "loadmg
or unloading" of thaf vehicle by any insured,
(2) The existence of tools, uninstalled equ�pment
or abandoned or unused materials, or
(3) Products or operations for which the
classification, listed in the Declarattons or in a
policy schedule, states that products-
compieted operations are sub�ect to the
General Aggregate Lim�t
20."Property damage" means
a. Physical in�ury to tang�bfe property, �nclud�ng all
resuiting loss of use of that properiy All such loss
of use shall be deemed to occur ai the time of the
physical in�ury that caused it, or
b Loss of use of tangibie property that is not
phys�cally in�ured AIf such loss of use shall be
deemed to accur at the time of the "occurrence"
that caused it
As used m this defind�on, camputenZed or
electronically stored data, programs or softwace are
not tangible property Electronic data means
mfarmation, facts or programs
a. Stored as or on,
b. Created or used on, or
c. Transm�tted to or from,
computer software, includ►ng systems and
applications software, hard or floppy d�sks, CD-
ROMS, tapes, dnves, ceils, data processing devices
or any other media whtch are used wiih etectron�cally
controlled equipment
21."Suit" means a civil proceed�ng in which damages
because of "bodiiy m�ury", "property damage" or
"personal and advertising m�ury" to which thrs
insurance applies are al(eged "Suit" includes
a An arbitrat�on proceeding m which such damages
are claimed and to which the insured must submit
or does submit w�th our consent, or
b. Any other altemative dispute resolution
proceedmg in wh►ch such damages are claimed
and to which the insured subm�ts w�fh our
consent
Page 18 of 18
22."Temporary worker" means a person who is
furnished to you to subst�tute for a permanent
"employee" on leave or to meet seasonal or short-
term workload conditions
23 "Volurrteer worker" means a person who
a. is not your "emp(oyee",
b Donates his or herwork,
c Aets at the direction of and wrthin the scope of
duties determined by you, and
d Is not paid a fee, salary or other compensat�on by
you or anyone else far their work performed for
you
24 "Your praduct"
a Means
(1) Any goads or products, other than real
property, manufactured, sold, handfed,
distnbuted or disposed of by
(a) You,
(b) Others trading under your name, or
{c} A person or organization whose business
or assets you have acqu�red, and
(2) Containers (oiher than vehicles), materials,
parts or equipment furn�shed in connection
w�th such goods or products
b Includes
{1) Warranties or representations made at any
time w�th respect to the fitness, quality,
durab►lity, performance or use of "your
product", and
(2) The providing of or fadure to prov�de wamings
or mstructions
c Does not include vending machmes or other
property rented to or located for the use of others
bui not sold
25. "You r wo rk"
a Means
(1) Work or operations pertormed by you or on
your behalf, and
(2) Materials, parts or equipment furnished in
connection w�th such work or operations
b Includes
{1) Warranties or representations made at any
t�me w�th respect to the frtness, quality,
durabilrty, performance or use of "your work",
and
(2) The providing of or fadure to prov►de warn�ngs
or mstructions
HG 40 01 a6 OS
� �
=� � Document A312T"" - 2010
Performance Band
CONTRACT�R•
(Name, legal statu,s and addressJ
Hokka�do Drillmg, Inc
PO Box l00
Graham, WA 98338
OWNER
(Name, legal status and address)
City of Bremerton
3027 Olympus Dr�ve
Bremerton, WA 98310
CONSTRUCTION CONTRACT
Date 11/3/2011
Bond No WAC49811
SURETY•
(Ncrme, legal status und przncipal place
of bus:ness)
Merchants Bondmg Company (Mutual)
5400 Canllon Point
K�rkland, WA 98033
Amount ONE HUNDRED ELEVEN THOUSAND FOUR HCTNDRED TWO AND 97/100THS
$111,402 97
Descriptaon
(Name and local�on)
Well 13 and Well 14 Rehabil�tat�on/Replacement Pro�ect
Bremerton, Wash�ngton
BOND
Date t 1/10/2011
(Not earizer than Construct�on Contract Date)
This document has important legal
consequences Consultation with
an attomey is encouraged with
respect to its completion or
modification
My singular reference to
Contractar, Surety, Owmer or
other perty shall be considered
plural where epplicable
AIA Document A312-2010
combmes two separate bonds a
Performance Bond and a
Payment Bond, into �e form
This is not a single combined
Performance and Payment Bond
Amount ONE HUNDRED ELEVEN THOUSAND FOUR HLTNDRED TWO AND 97/IOOTHS $111,402 9'7
Mod�ticat�ons to this Bond � None ❑ See Sechon 16
CONTRACTOR AS PRINCIPAL SURETY
Crnnpany (Corporate Seal) Company (Corporrxte ,Seal)
�-iokkaido Drillmg, Inc Merchants Bondmg Company (Mutual)
�
Signature , Signature
1`�ame //�(� � Name Chnstopher Kir on
and i'itle ��✓ and T�tle Attomey-m-Fact
(Any ad�itzonal s�gnatures appear on the last page of thzs Performance Bond )
(TOR IM%JI21viATIONONLY—Name, acic�i-ess and telephone)
AGENT or BROKER• OWNER'S REPRESENTATIVE•
Propel Insurance (,4rchitect, Engtneer or other party )
PO Box 2940
Tacoma, WA 98401
(253)759-2200
init A�aDocumetttA312T"'-2010 TheAmencanlnstituteofArchdeets ns>>,o
§ 1 The Contractor and Surety, �ov�tly and severally, buid themselves, their heu executors, administrators, successors
and assigns to the Owner for the performance of the Construction Contract, which is mcorporated herein by reference
§ 2 If the Contractor performs the Construction Contract, the Surety and the Contractor shall have no obl�ganon under
tlus Bond, except when applicable to participate in a conference as provided in Sect�an 3
§ 3 If there is no Owner Default under the Construction Contract, the Surety's obligation under t}us Bond shall anse
atter
the Owner first provides notice t� the Contractor and the Surety that the Owner is considenng declanng
a Contractor Detault Such notice shall uidicate whether the Owner is requestmg a conterence among
the Owner, Gontractor and Surety to dtscuss the Contractor's perfozmance It the Owner does not
request a conferenee, the Surety may, within five (5) business days after receipt of the Owner's not�ce,
reque5t such a conference If the Surety timely requests a conference, the Owner 5ha11 attend Unless
the Owner agrees otherwise, any conference requested under this Sectron 3 1 shall be held withm ten
(10) business days of the Surety's receipt of the Owner's notice If the Owner, the Contractor and the
Surety agree, the Contractoz shall be alIowed 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,
the Owner declares a Contractor Default, terminates the Construction Contract and notifies the Surety,
and
the Owner has agreed to pay the Balance of the Contract Price uz accordance with the terms of the
Construcrion Coniract to the Surety or to a contractor selected to �erform the Construction Contract
§ 4 Failure on the part of the Owner to comply with the notiee requirement in Section 3 1 shall not conslitute 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 pre�udice
§ 5 When the Ownei has sat�sfied the condit�ons of Section 3, the Surety shall promptly and at the Surety's eapense
take one of the followmg achons
§ 51 Arrange for the Contractor, with the consent of the Owner, to perform and complete the Construction Contract,
§ 5 2 Undertake to perform and complete the Construct�on Contract itself, through its agents or independent
contractors,
§ 5 3 Obtain bids or negotiated proposals from qualified contractors acceptable to the Owner for a contraet for
perfozmance and complet�on of the Construehon Contract, azrange for a contract to be prepared for execut�on by the
Owner and a contractor selected wrth the Owner's concurrence, to be secured wrth perforntance and poyment bonds
executed by a qualified surety equi4 alent to the bonds �ssued on the Construction Contract, and pay to the Owner the
amount of damages as descnbed m Sect�on 7 ui 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 obtaui a new contractor and with reasonable
promptness under the cu
1 After �m�esttgatton, determ�ne the amount for which it may be l�able 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 m part and notify the Owner, citmg the reasons for demal
§ 6 If the Surety doesnat proceed as provided m Sectton 5 with reasonable promptness, the Surety shall be deemed to
be m default on this Bond seven days atter receipt of an addirional written notice trom the Owner to the Surety
demanding that the Surety periorm its obitgat�ons under this Bond, and the Owner sha11 be entitled to eniorce any
remedy available to the Owner If the Stuety pr�eecis as pr�vided in Sect�on 5 4, and the Owner refuses the pay�nent
or the Surety has derued liability, u1 whole or in part without further notice the Owner shall be entided to enforce any
remedy available to the Owner
Init AIA DocumeM A312T"' — 2010 The Amencan Inst�tute ofArchdeets
2
§ 7 If the Surety elects to act under Section 51, 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 Conshvction Contract, and the responsibihties of the Owner to the
Surety shall not be greater than those of the Owner wzder the Construction Contract Sub�ect to the commrtment by the
Owner to pay the Balance of the Contract Price, the Surety is obl�gated, without duphcation, for
1 the responsibilities of the Contractor for correction of defective work and completion of the
Construction Contract,
2 addztional le�al, design prafessional and delay costs result�ng from the Contractor's Default, and
resulting from the act�ons or tailure to act of the Surety under Section 5, and
3 hquidated damages, or if no hquidated damages are specified tn the Consfiruction Contract, actual
damages caused by delayed performance or non-pertarmance ot the Contractor
§ 8 It the Surety elects to act under Section 5 1, 5 3 or 5 4, the Surety's liability is lunited to the amount of this Bond
§ 9 The Surety shall not be liable to the Owner or others tor obl�gations of the Contractor that are unrelated to the
Construction Coniract, and the Balance ot the Contract Price shall not be reduced or set otf on account of any such
unrelated obltgations No right ot action shall accrue on this $ond to any person or entrty other than the Owner or rts
heus, executors, admin�strators, successors and assigns
§ 10 The Surety hereby warves notice of any change, mcluding changes of tune, to the Construction Contract or to
related subcontracts, purchase orders and other obhgahons
§ 11 Any proceeding, legal or equitable, under this Bond may be uishtuted in any court ot cotnpetent Junsdichon �n
the location in which the work or part of the svork is located and shall be u�st�tuted wrtivn two years after a declaration
of Contractor Default or within two y ears after the Coniractor ceased workmg or within two years after the Surety
refuses or fails to perform its c��iligations under tlus Bond, wkuchever occurs fust If the provisions of this Paragraph
are void or prolvbited by law, the m�mmum penod of lunitahon available to sureties as a defense in the �unsdiction of
the surt shall be applicable
§ 12 Notice to the Surety, the Uwner or the Contractor shall be mailed or dehvered to the address shown on the page
on whtch theu signature appears
§ 13 UVhen this Bond has been fwn�shed to comply wrth a statutory or other legal requuement in the location where
the construchon was to be performed, any prov�sion �n this Bond conflictmg with said statutory or legal requirement
shall be deemed deleted herefrom and provisions conformuig to such statutory or other legal rec�urement shall be
deemed incorporated herem When so fumished, the intent is that this Bond shall be construed as a statutory bond and
not as a common law bond
§ 14 defmitions
§ 141 Balance of the ContraCt Pr�ce The total amount payable by the Owner to the Contractor under the Construct�on
Contract after all proper ad�ustments have been made, includuzg allowance to the Contractor of any amounts received
or to be received by the Owner m settlement of uisurance or other clauns for damages to w}uch the Contractor is
enritled, reduced by all valid and proper payments made to or on behalf of the Contractor under the Constructtan
Contract
§ 14 2 Construct�on ContraCt The agreement between the Owner and C;ontractor identitied on the cover page,
includ�.ng all Contract Documents and changes made to the agreement and the Contract Documents
§ 14 3 Contractor Default Failure ot the Contractor, wluch has not been remedied or waived, to pertorm or atherwise to
comply with a matenal 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 reGuued
under the Construchon Contract or to perform and complete or comply wrth the other matenal terms of the
Construction Contract
§ 14 5 Contract DoCUments All the documents that compnse the agreement betw een the Owner and Contractor
§ 15If this Bond is tssued for an agreement between a Contractor and subcontractor, the term Contractor m th�s Bond
shall be deemed to be Subcontractor and the term Owner shall be deemed to be Contractor
Inft A�A DoCUment A312'"' — 2010 The Amencan Instdute ofArchrtecfs
3
§ 16 Madifications to this bond are as follows
(Space is provided below for addrtzonal s�gnatttres of added pames, other than those appeanng on the cotier page )
CONTRACTOR AS PRINCIPAL 'SURETY
Company (Corporate Seal} Company (Corporate Seal)
Signature u i Q Signature N/A
Name and Title Name and Title
Address Address
GAU710N You shoutd s3gn an or�gma( AIA Ccrntract document, on which th�s fsxt appears in RED An orig�nal assuras that
changas wiil nat be ob�cured
Init AIA DoCUmeM A312T"' — 2010 The Amencan Institute ofArchrteets
4
= � � TM
�.-- Document A312 - 2010
Payment �ond
CONTRACTOR�
(Name, legal status und addre�s)
Hokka�do Dnllmg, Inc
PO Box 100
Graham, WA 98338
OWiVER
(Name, legal status and address)
Crty of Bremerton
3027 Olympus Dnve
Bremerton, WA 98310
CONSTRUCTION CONTRACT
Date ll/3/2011
Bond No WAC49811
SURETY•
(Name, legal staCus und pnnc�pal plaee
of husenessJ
Merchants Bondmg Company (Mutual)
5400 Canllon Pomt
Kirkland, WA 98033
Amount ONE HLTNDRED ELEVEN THOUSAND FOUR HiJNDRED TWO AND 97/100THS
$111,402 97
Descript�on
(Name and locat�on)
Well 13 and Well 14 Rehabilitat�on/Replacement Pro�ect
Bremerton, Washmgton
BOND
Date � 1/10/2011
(Not earker than Construcrion Contract Date)
This document has important legal
consequences Consultation wdh
an attomey is encouraged with
respect to its completion or
modification
Any singuler reference to
Contractor, 5urety, Owner or
other party shall be considered
plurel where appliceble
AIA Document A312-2010
combines two separate bonds a
Pertormance Bond and a
Payment Bond, mto wie form
This is not a single combmed
Perfortnance and Payment Bond
Amount ONE HLTNDRED ELEVEN THOUSAND FOUR HUNDRED TWO AND 97/100THS $i l 1,402 97
Moditications to this Bond � None ❑ See Section 18
CONTRACTOR F.S �RINCIPAL Sl1RETY
C.�mpany (Corporate Seal) Company (Corporate Seal)
F:okka�do I�nlimg Inc Merchants Bondmg Company (Mutual)
/ �
S,gnatace Signature �
Name � � Name Chr�stopher K�ny n
arid Trtle and Title Attorney-m-Fact
(,4rry ad�tznnal szgnatures appear on the last page of this Payment Bond)
(I'OR INFU�LIA770NONLY
AGENT or BROKER�
PropelInsurance
PO Box 2940
Tacoma, WA 98401
(253)759-2200
Name, address and telephone}
OWNER'S REf'RESENTATIVE�
(.4rchitect, Engtneer or other party )
Init A�A Doeument A312TM' — 2010 The Amencan Instdute ofArehRects
061110
5
§ 1 The �;ontractor and Surety, �ointly and severally, bmdthemselves, theu hezrs, e�.ecutors, admuusirators, successors
and assigns to the Owner to pay for labor, materials and equipment furnished for use m the performance of the
Construction Conh�act, w}uch is mcorporated herein by reference, sub�ect to the followuig terms
§ 2 If the Contractor promptly makes payment of all sums due to Claimants, and defends, mdemnifies and holds
harmless the Owner from claims, demands, liens or suits by any person or ent�ty seeking payment ior lahor, matenals
or equipment turn�shed tor use m the pertormance ot the Construction Contract, then the Surety and the Contractor
shall have no obligation under this Bond
§ 3 If there is no Owner Default under the Construction Cantzact, the Surety's obi�gahon to the Owner uncler this Bond
shall arise after the O��vner has promptly nohfied the Contractor and the Surety (at the address descnbed in Section 13)
of claims, demands, liens or suits agamst the Owner or the Owner's property by any person or entaty seeking payment
for labor, matenals or equ�pment furnished far use ui the performance of the Constructton Contract and tendered
defense of such clazms, demands, liens or suits to the Contractor and the Surety
§ 4 When the Owner has satisfied the condrtions m Section 3, the Surety shall promptly and at the Surety's expense
defend, �ndemmfy and hold harmless the Clwner against a duly tendered claim, demand, hen or suit
§ 5 The Surety's obligations to a Ctaunant under this Bond shall arise after the followmg
§ 51 Claunants, who do not have a duect contract with the Contractor,
1 have furmshed a wntten notiee of non-payment to the Contractor, statang with substantial aceuracy the
amount clauned and the name of the party to whom the tnatenals were, or equipment was, fumished or
�upphed nr for whom the labor was done or performed, witlun nuiety (90) days after having last
performed labor or last furrnshed m atenals or equipment includecl in the Claim, and
2 have sent a Claim to the Surety (at the address descnbed m Sect�on 13)
§ 5 2 Claimants, who are employed by or have a dtrect c�ntract wrth the Contractor, have sent a Claim to the Surety (at
the address descrtbed in Sechon 13)
§ 6 If a notice of non-payment requued by Section 5 1 1 is given by the Clwner to the Cont�actor, that is sufficient to
satisfy a Claimant's obligation to furnish a written notice of non-payment under Section � 1 1
§ 7 When a Claimant has satisfied the condrtions of Sections 5 1 or 5 2, whichever is apphcable, the Surety shall
promptly and at the Surety's expense take the followmg act�ons
§ 71 Send an answer to the Claimant, wit,h a copy to the Owner, within sixty (60) days after receipt of the Claim,
statuig the amounts that are undisputed and the basis for challengmg any amounts that are disputed, and
§ 7 2 Pay �r arrange for payment of any undisputed amounts
§ 7 3 The Surety's failure to d�scharge its obhgations under Secrion 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 Tf, however, the Surety fails to clischaige its
�bltgahons under Sectton 7 1 or Section 7 2, the Surety shal] Lndemnify the Claimant for the rea�onahJe attorney's
fees the Glaimant �ncurs thereafter to recover any sums found to be due and owing to the Claunant
§ 8 The Surety's total obligation shall not exceed the amount of this Bond, plus the amount of reasonable attorne��'s
fees provided under Section 7 3, and the amount of this Bond shall be credited for any payments made m good farth
by the Surety
§ 9 Amounts owed by the Owner ta the Contractor under the Construction Contract shall be used for the performance
ot the Construction Contract and to sat�sty claims, it any, under any construct�on perforn�ance bond By the
Contractor tumishuig and the Owner accept�ng this Bond, they agree that all funds earned by the Contractor in the
performance of the Construction Contract are dedicated to satisfy obhgations of the Contractor and Surety under this
Bonc�, sub�ect to the Owner's pnority to use the funds for the completion of the work
Init A�A DoeumeM A912*"' — 2010 The Amenean Institute ofArchdeets
6
§ 10 The Surety shall not be liable to the Owner, Claunant� or athers for obligations of the Contractor that are
unrelated to the Construction Contract The Owner shall no� be lrable for the paytnent of any costs or expenses of any
Claunant under th�s Bond, and shall have under t}us $ond no obhgarion to make payments to, or glve notice on behalf
of, Claunants or otherwise have any obligations t,� Claimants under this Bond
§ 11 The Surety hereby waives notice of any change, mcluding changes of tune, to the Construction Contract or to
related subcontracts, purchase orders and other obligations
§ 12 No surt or action shall be commenced by a Claunant under this Bond other than m a court ot competent
�urisdiction in the state ui which the pro�ect that is the sub�ect ot the Construction Contract �s located or after the
expiration of ane year from the date (1) on which the Claimant sent a Claun 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 matenals or
eqwpment were furnished by anyone under the Construction Contract, whichever of (] ) or (2) �rst occurs if the
provisions of this Paragraph are void or prohibited by law, the muumum period of lunitatian available to sureties as a
defense �n the �unsdiction of the suit shall be apphcable
§ 13 Notice and Clauns to the Surety, the Owner or the C;ontractor shall be mailed or dehvered ta the address shown
on the page on which their signature appears Actual receipt of notice or Clauns, hawever accomplished, shall be
sufficrent comphance as of the date received
§ 14 �Vhen this Bond has been furmshed to comply wrth a statutory or other legal requ�rement in the locat�on where
the construction was to be performed, any provision in this Bond conflicting wrth said statutary or legal requirement
shall be deemed deleted herefrom and provisions conformuig to such statutory or other legal requuement shall be
deemed incorporated herem When so fumished, the mtent �s that ihis Bond shall be construed as a statutory bond and
not as a cammon law bond
§ 15 Upon request by any person or enrity appeanng to be a potential beneficiary of this Bond, the Contractor and
Owner shall promptly fiunish a copy of this Bond or shall permit a copy to be ntade
§ 16 Qefmitions
§ 161 Claim A wntten statement by t}ie Claimant mcludulg at a mimmum
1 the name of the Clazmant,
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 Iabor, materials or equipment was
furnished for use in the performance of the Cons�uction Contract,
4 a brief description of the labor, materials or equipment furnished,
5 the date on w}uch the Claimant last performed labor or last furrushed matenals or aquipment for use in
the performance of the Construction Contract,
6 the total amount earned hy the Claimant for labor, materials or equipment furn�shed as of the date �f
the Claun,
7 the total amount of previous payments received by the Cla�mant, and
$ the total amount due and unpaid to the Claimant for labor, matenals or equipment fumished as of the
date of the Claim
§ 16 2 Cla�rnarit An individual or enttty havmg a duect contract with the Contractor or wtth a subcontractor of the
Contractor to furn�sh labor, matenals or equipment for use tn the performance of the Construction Contract The term
Claunant also meludes any indiv�dual or entity that has nghtfully asserted a claim under an applicable mechanic s lien
or similar statute agamst the real property upon which the Pro�ect is located The intent ot th�s Bond shall be to
include without l�xnitation in the terms "labor, matenals or equipment" that part of water, gas, power, light, heat, oil,
gasoluie, telephone service or rental equipment used in the Construction Contract, archrtectural and engineermg
services required for performance �f the wnrk of the Contraetor and the Contractor's Subc�ntraetors, and all other
items for w}uch a mechanic s lien may be asserted m the�unsdict�on where the labor, matenals or equipment were
furrushed
§ 16 3 ConstruCt�on Contract The agreem ent between the Owner and Contractor idenrified on the co� er page,
mcluduig all Contract Documents and all changes made to t}te agreement and the Contract Dociunents
In(t AfADoCUmeMA812�"'-2010 TheAmancanlnstituteofArchrtects
7
§ 16 4 Owner Default Failure of the Owner, which has not been remedied or waived, to pay the Contractor as requ�red
under the Construction Contract or to perform and complete or comply wrth the other matenal terms of the
Construchon Contract
§ 16 5 Contract Documents All the documents that compnse the agreement between the Owner and Contractor
§ 17 If this Bond is issued for an agreement between a Contractor and subcontractor, the term Con�actor m tivs Bond
shall be deemed to be Subcontractor and the term Owner shall be deemed to be Contxactor
§ 18 Modifications to this bond are as follows
(Space zs provtded belaw for addtfzonal stgnaCrtres of added parhes, ather than those appeartng on the cotier page )
CONTRACTOR AS PRINCIPAL SURETY
Cumpany jCorporate Seal) Company (Corporate Seal)
Signature N/A Signature N/A
Name and Trtle Name ancl Trtle
Address Addi ess
CAUTION You shuuld sign �n nrlglnai AIA Cantract Document, on whlch thls text appears (r� REO An orlginal assures that
changes wlll nat ba abscured
Init ��ADOCUmeMA312T""-2010 TheAmericanlnstduteofArchReets
$
MERC�=[ANTS
BONDIN� COMPANY
POWER OF ATTORNEY
Know All Persons By These Presents, that the MERCHANTS BONDING COMPANY (MUTUAL), a corporation duly organized under
the laws of the State of lowa, and havmg its pnncipal office in the City of Des Momes, County of Polk, State of lowa, hath made,
constituted and appointed, and does by these presents make, constitute and appoint
James B Bmder, Melmda Carlson, Peggy A Firth, Brent E Heilesen, Kyle Howat, Chr�stopher Kmyon,
Brady Monarty, Jenmfer L Snyder, Anne E Strieby, Karen Swanson, Julie R Tru►tt, Er�c A Ztmmerman
of Tacoma and State of Washmgton its true and lawful Attorney-m-Fact, with full power
and authonty hereby conferred in its name, place and stead, to sign, execute, acknowledge and deliver in ds behalf as surety any
and all bonds, undertakings, recogrnzances or other wntten obligations in the nature thereof, sub�ect to the limitation that any such
instrument shall not exceed the amount of
FIVE MILLION ($5,000,000 00) DOLLARS
and to bmd the MERCHANTS BONDING COMPANY (MUTUAL) thereby as fully and to the same extent as if such bond or
undertakmg was signed by the duly authorrzed o�cers of the MERCHANTS 80NDING COMPANY (MUTUAL), and all the acts of
said Attorney-in-Fact, pursuant to the authonty herem given, are hereby ratified and confirmed
This Power-of-Attorney is made and executed pursuant to and by authority of the following Amended Substituted and Restated By-
Laws adopted by the Board of Directors of the MERCHANTS BONDING COMPANY (MUTUAL) on November 16, 2002
ARTICLE II, SECTION 8- The Chairman of the Board or President or any Vice President or Secretary shall have power and
authonty to appomt Attorneys-in-Fact, and to authorize them to execute on behalf of the Company and attach the Seal of the
Company thereto, bonds and undertakings, recognizances, contracts of mdemnity and other wntmgs obligatory m the nature
thereof
ARTICLE iI, SECTiON 9- The signature of any authorrzed officer and the Seal of the Company may be affixed by facsimde
to any Power of Attorney or Certification thereof authonzing the execution and delivery of any bond, undertaking,
recognizance, or other suretyship obligations of the Company, and such signature and seal when so used shall have the
same force and effect as though manually fixed
In Witness Whereof, MERCHANTS BONDING COMPANY (MUTUAL) has caused these presents to be signed by its President and
its corporate seal to be hereto affixed, this Sth day of October , 2010
STATE OF IOWA
COUNTY OF POLK ss
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MERCHANTS BONDIN� COMPANY (MUTUAL)
� �
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Pres�dent
On this 8th day of October 2010 , before me appeared Larry Taylor, to me personally known, who being by me duly sworn did say that
he is President of the MERCHANTS BONDING COMPANY (MUTUAL), the corporation described m the foregomg instrument, and that the
Seal affixed to the said instrument is the Corporate Seal of the said Corporation and that the said instrument was signed and sealed m behalf
of said Corporation by authority of its Board of Directors
In Testimony Whereof, I have hereunto set my hand and affixed my Official Seal at the City of Des Momes, lowa, the day and year first
above written
� CINDY SMYTH
. � �rn Nlrrber 1T.i�A�
aw ^A'� ���
STATE OF IOWA
COUNTY OF POLK ss
�
�
Notary Publ�c, Polk County lowa
I, William Warner, Jr , Secretary of the MERCHANTS BONDING COMPANY (MUTUAL), do hereby certify that the above and foregoing
is a true and correct copy of the POWER-OF-ATTORNEY executed by said MERCHANTS BONDING COMPANY (MUTUAL), which is
stdl in full force and effect and has not been amended or revoked
In Witness Whereof, I have hereunto set my hand and affixed the seal of the Company on this �� day of ' V � V��►1��
POA 0001 (1/09)
.�.....,.
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F��esac�a�
/nterfm C/tyC/edlr! Shannon L Conn
shannon corin�ci bremerton wa us
November 4, 2011
To: Bdiy A Dodge
Hokkaido Dnlling, Inc
PO Box 100
Graham WA 98338
RE: Contract Documents
Well 13 & Well 14 Rehabilitation/Replacement
, ;�.-� u-�--�--•�� � �
�Te1360'-47,3=5323�` Y % , �' s "°" ,
_`Far360�-473-5200 ='°';�
"345�6tti 3treei, 5ude 600 f�r �`�
;BremertorS, WA 98337�
„ ;<.c
,
,,�_ , y _z �>�
b' r u�`l.� � � si �` "<hL��'
Enciosed is your fully executed copy referenced above A Notice-To-Proceed will be following
cerely, F
hannon L Co n
Intenm City Clerk
/sic
Enclosure
cc Fde
Paui C Wandimg, PE