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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 � d d � d � d � � 9 � � _� � ' 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. � � 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 � a m 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) � � � � � � � � � , , , , a � , � �. _� i � , � � � � ��. � 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 C D E F G H I 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) � i , � 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, � � � � � _� , y 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 J 1 ; r 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. � � 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) � � "� D 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. � 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 ) �� �'! 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) � J J �l 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 � �'' � � � ':J � 'J � �J � .� 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) � � �� � � � � � ,� � � � � � � � 0 � � 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) O ,�, � �N WI'T1�SS W�REOY', the parties below have executed this agreement. � � � CONTRACTOR (�� ,.�/" �� � � � Pnnt Name Billv A �od�e Title President DATE�T r/ THE CITY OF BREMERTON � � Print Naune Patty Lent Trtle• Ma or DATE Z� �tGOv P� �d �d J � � � � � � � -� TQ 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) �� ,,� 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 . �_.Y:�_�_'. :..w l.,_-.:. 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, HG 00 01 06 05 Page 3 of 18 Fiokkaido Drilling Inc 22UUVTA2250 (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 Page 4 of 18 HG 00 fl1 06 05 Fiokkaido Drilling Inc 22UUVTA2250 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 HG 00 01 Q6 05 Page 5 of 18 Hokkaido Dnllmg Inc 22UUVTA2250 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" Page 6 of 98 HG 00 01 06 05 Hokkaido Dnlling Inc 22UUVTA2250 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 HG 00 01 06 05 Page 7 of 18 Nokkaido Dnlling Inc 22UUVTA2250 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, Page 8 of 18 HG DO 01 06 05 Fiokkaido Dnllmg Inc 22UUVTA2250 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 HG 00 01 46 05 Page 9 of 1 S Wokkaido Dnlling Inc 22UUVTA2250 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 Hokkaido Drdlmg Inc 22UUVTA2250 (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 I-iokkaido Drdling Inc 22UUVTA2250 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 Page 12 of 18 HG 00 01 06 05 �Hokkaido Dnlling Inc 22UUVTA2250 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 HG 00 01 06 �5 Page 13 of 18 Hokkaido Drilling Inc 22UUVTA2250 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 J +iokkaido Driiling Inc 22UUVTA2250 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 �.•---•.� •� O�N� C�,� ; �o� . y . • � 9 � y.�: � �" _ _°_ v' ' d' 1933 3' :y• � • . v d o. • �� �,� . . . .� � . '••..... . MERCHANTS BONDIN� COMPANY (MUTUAL) � � � 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) .�.....,. • • �\N� C0�•.� � �O�ORPUq9.'°qy � .�,._ �•-t• .a. _o_ • . v;3; : y 1933 c : : J , �Q;• ' `1 ' . �W• � • � . '••..... . �� � ., , � �,��%�,.�� ��� .. Secretary , ,� ` r+ ' ' ��; � n� . �; �:; „ �.i�F:' x�iF v.lG �,,- ��'�RL ���, .' �I 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