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HomeMy Public PortalAboutC-16-018 - Turbo Data Systems, Inc. Amendment No. 2, Parking Citation ProcessingAMENDMENT NO.2 TO AGREEMENT FOR CONTRACT SERVICES 1 THIS AMENDMENT TO THE AGREEMENT FOR CONTRACT SERVICES ` ("Amendment") by and between the CITY OF CARSON, a California municipal corporation ("City") and TURBO DATA SYSTEMS, INC., a California Corporation ("Consultant") is v effective as of the 1st day of May, 2020. RECITALS A. City and Consultant entered into that certain Agreement for Contractual Services dated March 16, 2016 ("Agreement"), whereby Consultant agreed to provide parking citation processing services for a three-year period, from May 1, 2016 through April 30, 2019, in exchange for compensation in an amount not -to -exceed one hundred thousand dollars ($100,000) annually, equivalent to total compensation in an amount not -to -exceed three hundred thousand dollars ($300,000) over the initial three-year term of the Agreement. B. The Agreement provided the City with the option, at its sole discretion and upon 90 days' notice to Consultant, to extend the term of the Agreement for up to two additional one- year terms. C. City has exercised the first of its two one-year options under the Agreement, and in accordance with the Agreement the City and Consultant on May 1, 2019 executed Amendment No. 1 to the Agreement, so as to extend the term by one year through April 30, 2020 and to increase the total not -to -exceed contract sum to four hundred thousand dollars ($400,000). D. City has determined that it wishes to exercise the second of its two one-year options under the Agreement, and has notified Consultant of said determination in accordance with the Agreement. E. City and Consultant, to facilitate City's exercise of the second one-year option now desire to: (1) extend the term of the Agreement for one additional year, from May 1, 2020 through April 30, 2021; and (2) increase the contract sum of the Agreement by an amount not -to - exceed one hundred thousand dollars ($100,000) as compensation for the services to be provided by Consultant over the one-year extension period from May 1, 2020 through April 30, 2021, thereby increasing the total not -to -exceed contract sum of the Agreement from four hundred thousand dollars ($400,000) to five hundred thousand dollars ($500,000) over the full term of the Agreement. TERMS 1. Contract Changes. The Agreement is amended as provided herein (new text is identified in bold italics, deleted text in strike A. Section 2.1, Contract Sum, shall be amended to read in its entirety as follows: 01007.0001/622752.1 "Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the "Schedule of Compensation" attached hereto as Exhibit "C" and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed one hundred thousand dollars annually ($100,000.00/year), for a total amount not to exceed $400;000 five hundred thousand ($500,000) over the Term of this Agreement (the "Contract Sum"), unless additional compensation is approved pursuant to Section 1.8." B. Section 3.4, Term, shall be amended to read in its entirety as follows: "Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding four (4) five (5) years, from May 1, 2016 to April 30, April 30, 2021, except as otherwise provided in the Schedule of Performance (Exhibit "D' )." C. Exhibit "D," Schedule of Performance, shall be amended to read in its entirety as follows: "This Agreement shall continue in full force and effect starting on May 1, 2016 and ending on April 30, N0 April 30, 2021. , fflay extend the term ofthe Agr-eefneat for- up-te-one additional ane ear-te�ns. City extend the TermzeF the additienalyear- 40- days prior- the expiratten of TeFfn. N fnefe than extension is - per-mitted pursuant to tWs n R o nt I. Consultant shall perform the scope of services on an as -requested basis and as directed by the Contract Officer. II. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2." 2. Continuing Effect of Agreement. Except as amended by this Agreement, all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment, whenever the term "Agreement" appears in the Agreement, it shall mean the Agreement, as amended by this Amendment. 3. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Consultant each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation. Consultant represents and warrants to City that, as of the date of this Amendment, City is not in default of any material term of the Agreement and that there have been no events that, -2- 01007.0001/622752.1 with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. City represents and warrants to Consultant that, as of the date of this Amendment, Consultant is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. 4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment. 5. Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. [SIGNATURES ON FOLLOWING PAGE] -3- 01007.0001/622752.1 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first -above written. CITY: CITY O CARSON, u ici al corporation A ert A obles, ayor CONSULTANT: TURBO DATA SYSTEMS, INC., a California Corporation By: Name: V-00epa=F's, (�p56.+A Stmt NA�dA Title: 7�5� D By. -_ Name: I t Title: (f 'o Addr ss -_9, D2, l RVI N6 20-0 C(-� '--I 2-1 F;u Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT'S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT'S BUSINESS ENTITY. 01007.0001/622752.1 CALIFORNIA ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Orange } On /0 before me, Suzanne Kay, notary public (Fiere insert name and i e or the officer) personally appeared )P—oberi a,L( ELie who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) jiF/are subscribed to the within instrument and acknowledged to me that lie/they executed the same in h4oA r/their authorized capacity(ies), and that by lir/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. SUZANNE KAY WITNESS rn nd nd official seal. Commission No. 2161425 NOTARY PUBLIC -CALIFORNIA ORANGE COUNTY 19my Comm. Expires AUGUST 26, 2020 Notary Public Signature (Notary Public Seal) ADDITIONAL OPTIONAL INFORMATION DESCRIPTION OF THE ATTACHED DOCUMENT (Title or description of attached document) (Title ocription of attached document continued) Number of Pages Document Date CAPACITY CLAIMED BY THE SIGNER ❑ Individual (s) ❑ Corporate Officer (Title) ❑ Partner(s) ❑ Attorney -in -Fact ❑ Trustee(s) ❑ Other ..'1(-,fes-93=iti INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with current California statutes regarding notary wording and, if neeclecl, should be completed and attached to the dochmhent. Acknowledgments J-otn other states nhav be completed jar documents being sent to that state so long as the wording does nor require the California notaty to violate California notary Inv. • State and County information must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). • Print the name(s) of document -signers) who personally appear at the time of notarization • Indicate, the correct singular or plural forms by crossing off incorrect forms (i.e. he/she/#wy- is /are ) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording. • The notary seal impression must he clear and photographically reproducible. Impression must not cover text or lines. 11' seal impression smudges. re -seal if a sufficient area permits, otherwise complete a different acknowledgment form. • Si_nature of the notary public must match the signature on file with the office of the county clerk. Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. Indicate title or type orattached document, number of pages and date. Indicate the capacity claimed by the signer. It' the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). • Securely attach this document to the signed document with a staple. CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. STATE OF CALIFORNIA COUNTY OF LOS ANGELES On , 2020 before me, , personally appeared , proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. 01007.0001/622752.1 DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT OTHER THAN NAMED ABOVE CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL ❑ CORPORATE OFFICER TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY-IN-FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) 01007.0001/622752.1 DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT OTHER THAN NAMED ABOVE A IroVe,4 64�) TURBDAT-01 /-.2$_ Ili- CERTIFICATE OF LIABILITY INSURANCE DAT110/2DlYYYY) `.�..�� 9/10/2019 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER License # OC36861 CONTACT Karen M Adcock NAME: Newport Beach-Alliant Insurance Services, Inc. PHONE , Ext): (909) 886-9861 FA -2013 No):(909) 886-2013 1301 Dove St Ste 200 - Newport Beach, CA 92660 - E-MAIL KAdcock@alliant.com ADDRESS: . - - _@ INSURERLLAFFORDING COVERAGE _ NAIC # INSURER A: West American Insurance Company __- _44393 INSURED INSURER -B :Ohio_Secu_r_i_t_y Insurance Company-- _ 24082 _ Turbo Data Systems, Inc. _(Ns_u_RERc:American Fire and Casualty Company_ _- 24066 Innovative Collection Services --- - - 18302 Irvine Blvd., Ste 200 INSURER D :State Compensation Insurance Fund of California 35076 Tustin, CA 92780 INSURER E: Twin City Fire Insurance Company 29459 INSURER F: Landmark American Insurance Company 33138 f.f1VFRAf;FC f:FRTIFIrATF MI IMRFR RFVISIf1N NII IMRFR• THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADDLSUBR POLICY EFF POLICY EXP LTR TYPE OF INSURANCE IN D WVD POLICY NUMBER MM/D /YY MM/D n LIMITS A X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1'000'000 CLAIMS -MADE X OCCUR BKW56604610 7/1/2019 7/1/2020 X X DAMAGE TO RENTED PREMISES (Ea occurrence) $ _. 500,000 15'000 MED EXP (Any one person) $ 1'000'000 PERSONAL & ADV INJURY $ 2'000'000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ X POLICY PEST LOC PRODUCTS - COMP/OP AGG S 2,000,000 OTHER: $ B AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT (Ea accident) _. $ 1,000,000 X ANY AUTO _ X X BAS56604610 7/1/2019 7/1/2020 BODILY INJURY CPerperson) $ OWNED SCHEDULED _ AUTOS ONLY AUTOS BODILY INJURY CPer accident) _ $ _ HIRED NON -AWNED PROPERTY DAMAGE _ AUTOS ONLY AUTOS ONLY _ mer accident) _ $ $ C UMBRELLA LIAB X OCCUR EACH OCCURRENCE $ 10'000'000 X EXCESS LIAB CLAIMS -MADE ESA56604610 7/1/2019 7/1/2020 AGGREGATE $ 101000'000 - - DED X RETENTION $ 0 $ D WORKERS COMPENSATION AND EMPLOYERS' LIABILITY X PER OTH- _ -_. STATUTE ._ ER _ _ _ Y/_N. X 9103640-19 7/1/2019 7/1/2020 1,000,000 ANY PROPRIETOR/PARTNER/EXECUTIVE NIA E. L. EACH ACCIDENT - -$-- - -- - WpF.1 ER/MEMBER EXCLUDED? NH) - 1,000,000 (Mandatory n E.L. DISEASE -EA EMPLOYEE $ If yes, describe under 1,000,000 DESCRIPTION OF OPERATIONS below E.L. DISEASE -POLICY LIMIT $ E Commercial Crime 72 KB 0296809-19 7/1/2019 7/1/2020 'Retention $5,000 1,000,000 F Professional Liab LHR838424 9/10/2019 9/10/2020 Per Claim&Aggregate 2,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) RE: Contract Service Agreement The City of Carson, its respective elected and appointed officers, directors, officials, employees, agents and volunteers are named as Additional Insureds as respects to General Liability and Auto Liability arising out of activities performed by the Named Insured as required by written contract in which coverage afforded by these policies to the Additional Insureds is primary. Waiver of Subrogation is included for General Liability, Auto Liability and Workers Compensation. City of Carson Attn: City Manager 701 East Carson Carson, CA 90745 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE a=-� ACORD 25 (2016/03) ©1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD COMMERCIAL GENERAL LIABILITY POLICY NUMBER: BKW (20) 56 60 46 10 CG 88 10 04 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. COMMERCIAL GENERAL LIABILITY EXTENSION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART INDEX SUBJECT PAGE NON -OWNED AIRCRAFT 2 NON -OWNED WATERCRAFT 2 PROPERTY DAMAGE LIABILITY - ELEVATORS 2 EXTENDED DAMAGE TO PROPERTY RENTED TO YOU (Tenant's Property Damage) 2 MEDICAL PAYMENTS EXTENSION 3 EXTENSION OF SUPPLEMENTARY PAYMENTS - COVERAGES A AND B 3 " ADDITIONAL INSUREDS - BY CONTRACT, AGREEMENT OR PERMIT 3 PRIMARY AND NON-CONTRIBUTORY- ADDITIONAL INSURED EXTENSION 5 ADDITIONAL INSUREDS - EXTENDED PROTECTION OF YOUR "LIMITS OF INSURANCE" 6 WHO IS AN INSURED - INCIDENTAL MEDICAL ERRORS/MALPRACTICE AND WHO IS AN INSURED - FELLOW EMPLOYEE EXTENSION - MANAGEMENT EMPLOYEES 6 NEWLY FORMED OR ADDITIONALLY ACQUIRED ENTITIES 7 FAILURE TO DISCLOSE HAZARDS AND PRIOR OCCURRENCES 7 " KNOWLEDGE OF OCCURRENCE, OFFENSE, CLAIM OR SUIT 7 LIBERALIZATION CLAUSE 7 BODILY INJURY REDEFINED 7 EXTENDED PROPERTY DAMAGE 8 WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US - 8 WHEN REQUIRED IN A CONTRACT OR AGREEMENT WITH YOU © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 8 With respect to coverage afforded by this endorsement, the provisions of the policy apply unless modified by the endorsement. A. NON -OWNED AIRCRAFT Under Paragraph 2. Exclusions of Section I - Coverage A - Bodily Injury And Property Damage Liability, exclusion g. Aircraft, Auto Or Watercraft does not apply to an aircraft provided: 1. It is not owned by any insured; 2. It is hired, chartered or loaned with a trained paid crew; 3. The pilot in command holds a currently effective certificate, issued by the duly constituted authority of the United States of America or Canada, designating her or him a commercial or airline pilot; and 4. It is not being used to carry persons or property for a charge. However, the insurance afforded by this provision does not apply if there is available to the insured other valid and collectible insurance, whether primary, excess (other than insurance written to apply specifically in excess of this policy), contingent or on any other basis, that would also apply to the loss covered under this provision. ,JOB :LS]Treyi'P►I21DIR'PLt111 4zk"z0W Under Paragraph 2. Exclusions of Section I - Coverage A - Bodily Injury And Property Damage Liability, Subparagraph (2) of exclusion g. Aircraft, Auto Or Watercraft is replaced by the following: This exclusion does not apply to: (2) A watercraft you do not own that is: (a) Less than 52 feet long; and (b) Not being used to carry persons or property for a charge. C. PROPERTY DAMAGE LIABILITY -ELEVATORS 1. Under Paragraph 2. Exclusions of Section I - Coverage A - Bodily Injury And Property Damage Liabil- ity, Subparagraphs (3), (4) and (6) of exclusion j. Damage To Property do not apply if such "property damage" results from the use of elevators. For the purpose of this provision, elevators do not include vehicle lifts. Vehicle lifts are lifts or hoists used in automobile service or repair operations. 2. The following is added to Section IV - Commercial General Liability Conditions, Condition 4. Other Insurance, Paragraph b. Excess Insurance: The insurance afforded by this provision of this endorsement is excess over any property insurance, whether primary, excess, contingent or on any other basis. D. EXTENDED DAMAGE TO PROPERTY RENTED TO YOU (Tenant's Property Damage) If Damage To Premises Rented To You is not otherwise excluded from this Coverage Part: 1. Under Paragraph 2. Exclusions of Section I - Coverage A - Bodily Injury and Property Damage Liability: a. The fourth from the last paragraph of exclusion j. Damage To Property is replaced by the follow- ing: Paragraphs (1), (3) and (4) of this exclusion do not apply to "property damage" (other than damage by fire, lightning, explosion, smoke, or leakage from an automatic fire protection system) to.- (i) o:(i) Premises rented to you for a period of 7 or fewer consecutive days; or (ii) Contents that you rent or lease as part of a premises rental or lease agreement for a period of more than 7 days. Paragraphs (1), (3) and (4) of this exclusion do not apply to "property damage" to contents of premises rented to you for a period of 7 or fewer consecutive days. A separate limit of insurance applies to this coverage as described in Section III - Limits of Insurance. © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 2 of 8 b. The last paragraph of subsection 2. Exclusions is replaced by the following: Exclusions c. through n. do not apply to damage by fire, lightning, explosion, smoke or leakage from automatic fire protection systems to premises while rented to you or temporarily occupied by you with permission of the owner. A separate limit of insurance applies to Damage To Premises Rented To You as described in Section III - Limits Of Insurance. 2. Paragraph 6. under Section III - Limits Of Insurance is replaced by the following: 6. Subject to Paragraph 5. above, the Damage To Premises Rented To You Limit is the most we will pay under Coverage A for damages because of "property damage" to: a. Any one premise: (1) While rented to you; or (2) While rented to you or temporarily occupied by you with permission of the owner for damage by fire, lightning, explosion, smoke or leakage from automatic protection sys- tems; or b. Contents that you rent or lease as part of a premises rental or lease agreement. 3. As regards coverage provided by this provision D. EXTENDED DAMAGE TO PROPERTY RENTED TO YOU (Tenant's Property Damage) - Paragraph 9.a. of Definitions is replaced with the following: 9.a. A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire, lightning, explosion, smoke, or leakage from automatic fire protection systems to premises while rented to you or temporarily occupied by you with the permission of the owner, or for damage to contents of such premises that are included in your premises rental or lease agreement, is not an "insured contract". E. MEDICAL PAYMENTS EXTENSION If Coverage C Medical Payments is not otherwise excluded, the Medical Payments provided by this policy are amended as follows: Under Paragraph 1. Insuring Agreement of Section I - Coverage C - Medical Payments, Subparagraph (b) of Paragraph a. is replaced by the following: (b) The expenses are incurred and reported within three years of the date of the accident; and F. EXTENSION OF SUPPLEMENTARY PAYMENTS - COVERAGES A AND B 1. Under Supplementary Payments - Coverages A and B, Paragraph 1.b. is replaced by the following: b. Up to $3,000 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Liability Coverage applies. We do not have to furnish these bonds. N 2. Paragraph 1.d. is replaced by the following: d. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual loss of earnings up to $500 a day because of time off from work. G. ADDITIONAL INSUREDS -BY CONTRACT, AGREEMENT OR PERMIT 1. Paragraph 2. under Section II - Who Is An Insured is amended to include as an insured any person or organization whom you have agreed to add as an additional insured in a written contract, written agreement or permit. Such person or organization is an additional insured but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused in whole or in part by: a. Your acts or omissions, or the acts or omissions of those acting on your behalf, in the performance of your on going operations for the additional insured that are the subject of the written contract or written agreement provided that the "bodily injury" or "property damage" occurs, or the "per- sonal and advertising injury" is committed, subsequent to the signing of such written contract or written agreement; or © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 3 of 8 b. Premises or facilities rented by you or used by you; or c. The maintenance, operation or use by you of equipment rented or leased to you by such person or organization; or d. Operations performed by you or on your behalf for which the state or political subdivision has issued a permit subject to the following additional provisions: (1) This insurance does not apply to "bodily injury", "property damage", or "personal and ad- vertising injury" arising out of the operations performed for the state or political subdivision; (2) This insurance does not apply to "bodily injury" or "property damage" included within the "completed operations hazard". (3) Insurance applies to premises you own, rent, or control but only with respect to the following hazards: (a) The existence, maintenance, repair, construction, erection, or removal of advertising signs, awnings, canopies, cellar entrances, coal holes, driveways, manholes, marquees, hoist away openings, sidewalk vaults, street banners, or decorations and similar expo- sures; or (b) The construction, erection, or removal of elevators; or (c) The ownership, maintenance, or use of any elevators covered by this insurance. However: 1. The insurance afforded to such additional insured only applies to the extent permitted by law; and 2. If coverage provided to the additional insured is required by a contract or agreement, the insur- ance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional insured. With respect to Paragraph 1.a. above, a person's or organization's status as an additional insured under this endorsement ends when: (1) All work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or (2) That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project. With respect to Paragraph 1.b. above, a person's or organization's status as an additional insured under this endorsement ends when their written contract or written agreement with you for such premises or facilities ends. With respects to Paragraph 1.c. above, this insurance does not apply to any "occurrence" which takes place after the equipment rental or lease agreement has expired or you have returned such equipment to the lessor. The insurance provided by this endorsement applies only if the written contract or written agreement is signed prior to the "bodily injury" or "property damage". We have no duty to defend an additional insured under this endorsement until we receive written notice of a "suit" by the additional insured as required in Paragraph b. of Condition 2. Duties In the Event Of Occurrence, Offense, Claim Or Suit under Section IV - Commercial General Liability Condi- tions. © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 4 of 8 2. With respect to the insurance provided by this endorsement, the following are added to Paragraph 2. Exclusions under Section I - Coverage A - Bodily Injury And Property Damage Liability: This insurance does not apply to: a. "Bodily injury" or "property damage" arising from the sole negligence of the additional insured. b. "Bodily injury" or "property damage" that occurs prior to you commencing operations at the location where such "bodily injury" or "property damage" occurs. c. "Bodily injury", "property damage" or "personal and advertising injury" arising out of the render- ing of, or the failure to render, any professional architectural, engineering or surveying services, including: (1) The preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; or (2) Supervisory, inspection, architectural or engineering activities. N This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that insured, if the "occur- rence" which caused the "bodily injury" or "property damage", or the offense which caused the "personal and advertising injury", involved the rendering of, or the failure to render, any professional architectural, engineering or surveying services. d. "Bodily injury" or "property damage" occurring after: (1) All work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or (2) That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project. e. Any person or organization specifically designated as an additional insured for ongoing operations by a separate ADDITIONAL INSURED -OWNERS, LESSEES OR CONTRACTORS endorsement is- sued by us and made a part of this policy. 3. With respect to the insurance afforded to these additional insureds, the following is added to Section III - Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: a. Required by the contract or agreement; or b. Available under the applicable Limits of Insurance shown in the Declarations; whichever is less. This endorsement shall not increase the applicable Limits of Insurance shown in the Declaratio ns. H. PRIMARY AND NON-CONTRIBUTORY ADDITIONAL INSURED EXTENSION This provision applies to any person or organization who qualifies as an additional insured under any form or endorsement under this policy. Condition 4. Other Insurance of SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS is amend- ed as follows: a. The following is added to Paragraph a. Primary Insurance: If an additional insured's policy has an Other Insurance provision making its policy excess, and you have agreed in a written contract or written agreement to provide the additional insured coverage on a primary and noncontributory basis, this policy shall be primary and we will not seek contribution from the additional insured's policy for damages we cover. © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 5 of 8 b. The following is added to Paragraph b. Excess Insurance: When a written contract or written agreement, other than a premises lease, facilities rental contract or agreement, an equipment rental or lease contract or agreement, or permit issued by a state or political subdivision between you and an additional insured does not require this insurance to be primary or primary and non-contributory, this insurance is excess over any other insurance for which the addi- tional insured is designated as a Named Insured. Regardless of the written agreement between you and an additional insured, this insurance is excess over any other insurance whether primary, excess, contingent or on any other basis for which the additional insured has been added as an additional insured on other policies. I. ADDITIONAL INSUREDS - EXTENDED PROTECTION OF YOUR "LIMITS OF INSURANCE" This provision applies to any person or organization who qualifies as an additional insured under any form or endorsement under this policy. 1. The following is added to Condition 2. Duties In The Event Of Occurrence, Offense, Claim or Suit: An additional insured under this endorsement will as soon as practicable: a. Give written notice of an "occurrence" or an offense that may result in a claim or "suit" under this insurance to us; b. Tender the defense and indemnity of any claim or "suit" to all insurers whom also have insurance available to the additional insured; and c. Agree to make available any other insurance which the additional insured has for a loss we cover under this Coverage Part. d. We have no duty to defend or indemnify an additional insured under this endorsement until we receive written notice of a "suit" by the additional insured. 2. The limits of insurance applicable to the additional insured are those specified in a written contract or written agreement or the limits of insurance as stated in the Declarations of this policy and defined in Section III - Limits of Insurance of this policy, whichever are less. These limits are inclusive of and not in addition to the limits of insurance available under this policy. J. WHO IS AN INSURED -INCIDENTAL MEDICAL ERRORS/ MALPRACTICE WHO IS AN INSURED - FELLOW EMPLOYEE EXTENSION - MANAGEMENT EMPLOYEES Paragraph 2.a.(1) of Section II -Who Is An Insured is replaced with the following: (1) "Bodily injury" or "personal and advertising injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), to a co -"employee" while in the course of his or her employ- ment or performing duties related to the conduct of your business, or to your other "volunteer workers" while performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co -"employee" or "volunteer worker" as a consequence of Paragraph (1) (a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in Paragraphs (1) (a) or (b) above; or (d) Arising out of his or her providing or failing to provide professional health care services. However, if you are not in the business of providing professional health care services or providing profes- sional health care personnel to others, or if coverage for providing professional health care ser- vices is not otherwise excluded by separate endorsement, this provision (Paragraph (d)) does not apply. Paragraphs (a) and (b) above do not apply to "bodily injury" or "personal and advertising injury" caused by an "employee" who is acting in a supervisory capacity for you. Supervisory capacity as used herein means the "employee's" job responsibilities assigned by you, includes the direct supervision of other "employ- ees" of yours. However, none of these "employees" are insureds for "bodily injury" or "personal and © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 6 of 8 advertising injury" arising out of their willful conduct, which is defined as the purposeful or willful intent to cause "bodily injury" or "personal and advertising injury", or caused in whole or in part by their intoxica- tion by liquor or controlled substances. The coverage provided by provision J. is excess over any other valid and collectable insurance available to your "employee". K. NEWLY FORMED OR ADDITIONALLY ACQUIRED ENTITIES Paragraph 3. of Section II - Who Is An Insured is replaced by the following: 3. Any organization you newly acquire or form and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the expiration of the policy period in which the entity was acquired or formed by you; b. Coverage A does not apply to "bodily injury" or "property damage" that occurred before you acquired or formed the organization; and c. Coverage B does not apply to "personal and advertising injury" arising out of an offense committed before you acquired or formed the organization. d. Records and descriptions of operations must be maintained by the first Named Insured. No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations or qualifies as an insured under this provision. L. FAILURE TO DISCLOSE HAZARDS AND PRIOR OCCURRENCES Under Section IV - Commercial General Liability Conditions, the following is added to Condition 6. Repre- sentations: Your failure to disclose all hazards or prior 'occurrences" existing as of the inception date of the policy shall not prejudice the coverage afforded by this policy provided such failure to disclose all hazards or prior 'occurrences" is not intentional. M. KNOWLEDGE OF OCCURRENCE, OFFENSE, CLAIM OR SUIT Under Section IV - Commercial General Liability Conditions, the following is added to Condition 2. Duties In The Event of Occurrence, Offense, Claim Or Suit: Knowledge of an 'occurrence", offense, claim or "suit" by an agent, servant or "employee" of any insured shall not in itself constitute knowledge of the insured unless an insured listed under Paragraph 1. of Section II - Who Is An Insured or a person who has been designated by them to receive reports of "occurrences", offenses, claims or "suits" shall have received such notice from the agent, servant or "employee". N. LIBERALIZATION CLAUSE If we revise this Commercial General Liability Extension Endorsement to provide more coverage without additional premium charge, your policy will automatically provide the coverage as of the day the revision is effective in your state. O. BODILY INJURY REDEFINED Under Section V - Definitions, Definition 3. is replaced by the following: 3. "Bodily Injury" means physical injury, sickness or disease sustained by a person. This includes mental anguish, mental injury, shock, fright or death that results from such physical injury, sick- ness or disease. © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 7 of 8 P. EXTENDED PROPERTY DAMAGE Exclusion a. of COVERAGE A. BODILY INJURY AND PROPERTY DAMAGE LIABILITY is replaced by the following: a. Expected Or Intended Injury "Bodily injury" or "property damage" expected or intended from the standpoint of the insured. This exclusion does not apply to "bodily injury" or "property damage" resulting from the use of reasonable force to protect persons or property. Q. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US - WHEN REQUIRED IN A CONTRACT OR AGREEMENT WITH YOU Under Section IV - Commercial General Liability Conditions, the following is added to Condition 8. Trans- fer Of Rights Of Recovery Against Others To Us: We waive any right of recovery we may have against a person or organization because of payments we make for injury or damage arising out of your ongoing operations or "your work" done under a contract with that person or organization and included in the "products -completed operations hazard" provided: 1. You and that person or organization have agreed in writing in a contract or agreement that you waive such rights against that person or organization; and 2. The injury or damage occurs subsequent to the execution of the written contract or written agree- ment. © 2013 Liberty Mutual Insurance CG 88 10 04 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 8 of 8 POLICY NUMBER: BAS (20) 56 60 46 10 CA 00 01 03 06 BUSINESS AUTO COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "our" refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to Section V - Definitions. SECTION I - COVERED AUTOS ITEM TWO of the Declarations shows the "autos" that are covered "autos" for each of your cov- erages. The following numerical symbols de- scribe the "autos" that may be covered "autos". The symbols entered next to a coverage on the Declarations designate the only "autos" that are covered "autos". A. Description Of Covered Auto Designation Symbols Symbol Description Of Covered Auto Designation Symbols 1 An "Auto" 2 Owned Only those "autos" you own (and for Liability Coverage any "trailers" "Autos" you don't own while attached to power units you own.) This includes OnIV those "autos" you acquire ownership of after the policV begins. 3 Owned Only the -private passenger "autos" you own. This includes those private Private passenger "autos" you acquire ownership of after the policy begins. Passenger "Autos" Onl 4 Owned Only those "autos" you own that are not of the private passenger type "Autos" Other (and for Liability Coverage any "trailers" you don't own while attached Than Private to power units you own). This includes those "autos" not of the Passenger private passenger type you acquire ownership of after the policy begins. "Autos" Only 5 Owned Only those "autos" you own that are required to have No -Fault benefits "Autos" in the state where they are licensed or principally garaged. This Subject includes those "autos" you acquire ownership of after the policy begins To No -Fault provided they are required to have No -Fault benefits in the state where they are licensed or principalIV garaged. 6 Owned Only those "autos" you own that because of the law in the state where "Autos" they are licensed or principally garaged are required to have and Subject cannot reject Uninsured Motorists Coverage. This includes those To A "autos" you acquire ownership of after the policy begins provided Compulsory they are subject to the same state uninsured motorists requirement. Uninsured Motorists Law 7 Specifically Only those "autos" described in Item Three of Declarations for which Described a premium charge is shown (and for Liability Coverage any "trailers" "Autos" vou don't own while attached to any power unit described in Item Three), 8 Hired "Autos" Only those "autos" you lease, hire, rent or borrow. This does not include Only any "auto" you lease, hire, rent, or borrow from any of your "employees", partners (if you are a partnership), members (if you are a limited liability company) or members of their households. CA 00 01 03 06 ©ISO Properties, Inc., 2005 Page 1 of 13 B. Owned Autos You Acquire After The Policy Begins 1. If symbols 1, 2, 3, 4, 5, 6 or 19 are entered next to a coverage in ITEM TWO of the Declarations, then you have cov- erage for "autos" that you acquire of the type described for the remainder of the policy period. 2. But, if symbol 7 is entered next to a coverage in ITEM TWO of the Declara- tions, an "auto" you acquire will be a covered "auto" for that coverage only if: a. We already cover all "autos" that you own for that coverage or it re- places an "auto" you previously owned that had that coverage; and b. You tell us within 30 days after you acquire it that you want us to cover it for that coverage. C. Certain Trailers, Mobile Equipment And Tem- porary Substitute Autos If Liability Coverage is provided by this Cov- erage Form, the following types of vehicles are also covered "autos" for Liability Cov- erage: 1. "Trailers" with a load capacity of 2,000 pounds or less designed primarily for travel on public roads. 2. "Mobile equipment' while being carried or towed by a covered "auto." 3. Any "auto" you do not own while used with the permission of its owner as a temporary substitute for a covered "auto" you own that is out of service because of its: a. Breakdown; b. Repair; c. Servicing; d. "Loss"; or e. Destruction SECTION II - LIABILITY COVERAGE A. Coverage We will pay all sums an "insured" legally must pay as damages because of "bodily injury" or "property damage" to which this insurance applies, caused by an "accident" and resulting from the ownership, mainten- ance or use of a covered "auto." We will also pay all sums an "insured" le- gally must pay as a "covered pollution cost or expense" to which this insurance applies, caused by an "accident" and resulting from the ownership, maintenance or use of cov- ered "autos." However, we will only pay for the "covered pollution cost or expense" if there is either "bodily injury" or "property damage" to which this insurance applies that is caused by the same "accident." We have the right and duty to defend any "insured" against a "suit" asking for such damages or a "covered pollution cost or ex- pense". However, we have no duty to defend any "insured" against a "suit" seeking dam- ages for "bodily injury" or "property dam- age" or a "covered pollution cost or expense" to which this insurance does not apply. We may investigate and settle any claim or "suit' as we consider appropriate. Our duty to defend or settle ends when the Liability Coverage Limit of Insurance has been exhausted by payment of judgments or settlements. 1. Who Is An Insured The following are "insureds": a. You for any covered "auto." b. Anyone else while using with your permission a covered "auto" you own, hire or borrow except: CA 00 01 03 06 ©ISO Properties, Inc., 2005 Page 2 of 13 Description Of Covered Auto Designation Symbols -Symbol 9 Non -Owned Only those "autos" you do not own, lease, hire, rent or borrow that "Autos" are used in connection with your business. This includes "autos" owned Only by your "employees", partners (if you are a partnership), members (if you are a limited liability company), or members of their households but only while used in your business or your personal affairs. 19 Mobile Equip- Only those "autos" that are land vehicles and that would qualify under the ment Subject definition of "mobile equipment" under this policy if they were not To Compul- subject to a compulsory or financial responsibility law or other sory Or motor vehicle insurance law where they are licensed or principally garaged. Financial Responsibility Or Other Motor Vehicle Insurance Law Only B. Owned Autos You Acquire After The Policy Begins 1. If symbols 1, 2, 3, 4, 5, 6 or 19 are entered next to a coverage in ITEM TWO of the Declarations, then you have cov- erage for "autos" that you acquire of the type described for the remainder of the policy period. 2. But, if symbol 7 is entered next to a coverage in ITEM TWO of the Declara- tions, an "auto" you acquire will be a covered "auto" for that coverage only if: a. We already cover all "autos" that you own for that coverage or it re- places an "auto" you previously owned that had that coverage; and b. You tell us within 30 days after you acquire it that you want us to cover it for that coverage. C. Certain Trailers, Mobile Equipment And Tem- porary Substitute Autos If Liability Coverage is provided by this Cov- erage Form, the following types of vehicles are also covered "autos" for Liability Cov- erage: 1. "Trailers" with a load capacity of 2,000 pounds or less designed primarily for travel on public roads. 2. "Mobile equipment' while being carried or towed by a covered "auto." 3. Any "auto" you do not own while used with the permission of its owner as a temporary substitute for a covered "auto" you own that is out of service because of its: a. Breakdown; b. Repair; c. Servicing; d. "Loss"; or e. Destruction SECTION II - LIABILITY COVERAGE A. Coverage We will pay all sums an "insured" legally must pay as damages because of "bodily injury" or "property damage" to which this insurance applies, caused by an "accident" and resulting from the ownership, mainten- ance or use of a covered "auto." We will also pay all sums an "insured" le- gally must pay as a "covered pollution cost or expense" to which this insurance applies, caused by an "accident" and resulting from the ownership, maintenance or use of cov- ered "autos." However, we will only pay for the "covered pollution cost or expense" if there is either "bodily injury" or "property damage" to which this insurance applies that is caused by the same "accident." We have the right and duty to defend any "insured" against a "suit" asking for such damages or a "covered pollution cost or ex- pense". However, we have no duty to defend any "insured" against a "suit" seeking dam- ages for "bodily injury" or "property dam- age" or a "covered pollution cost or expense" to which this insurance does not apply. We may investigate and settle any claim or "suit' as we consider appropriate. Our duty to defend or settle ends when the Liability Coverage Limit of Insurance has been exhausted by payment of judgments or settlements. 1. Who Is An Insured The following are "insureds": a. You for any covered "auto." b. Anyone else while using with your permission a covered "auto" you own, hire or borrow except: CA 00 01 03 06 ©ISO Properties, Inc., 2005 Page 2 of 13 (1) The owner or anyone else from whom you hire or borrow a cov- ered "auto". This exception does not apply if the covered "auto" is a "trailer" connected to a cov- ered "auto" you own. (2) Your "employee" if the covered "auto" is owned by that "em- ployee" or a member of his or her household. (3) Someone using a covered "auto" while he or she is work- ing in a business of selling, ser- vicing, repairing, parking or storing "autos" unless that busi- ness is yours. (4) Anyone other than your "em- ployees", partners (if you are a partnership), members (if you are a limited liability company), or a lessee or borrower or any of their "employees", while moving property to or from a covered "auto". (5) A partner (if you are a partner- ship), or a member (if you are a limited liability company), for a covered "auto" owned by him or her or a member of his or her household. c. Anyone liable for the conduct of an "insured" described above but only to the extent of that liability. 2. Coverage Extensions a. Supplementary Payments. We will pay for the "insured": (1) All expenses we incur. (2) Up to $2,000 for cost of bail bonds (including bonds for re- lated traffic law violations) re- quired because of an "accident" we cover. We do not have to furnish these bonds. (3) The cost of bonds to release at- tachments in any "suit" against the "insured" we defend, but only for bond amounts within our Limit of Insurance. (4) All reasonable expenses incurred by the "insured" at our request, including actual loss of earnings up to $250 a day because of time off from work. (5) All costs taxed against the "in- sured" in any "suit" against the "insured" we defend. (6) All interest on the full amount of any judgment that accrues after entry of the judgment in any "suit" against the "insured" we defend, but our duty to pay in- terest ends when we have paid, offered to pay or deposited in court the part of the judgment that is within our Limit of Insur- ance. These payments will not reduce the Limit of Insurance. b. Out of State Coverage Extensions. While a covered "auto" is away from the state where it is licensed we will: (1) Increase the Limit of Insurance for Liability Coverage to meet the limits specified by a compul- sory or financial responsibility law of the jurisdiction where the covered "auto" is being used. This extension does not apply to the limit or limits specified by any law governing motor carriers of passengers or property. (2) Provide the minimum amounts and types of other coverages, such as no-fault, required of out- of-state vehicles by the jurisdic- tion where the covered "auto" is being used. We will not pay anyone more than once for the same elements of loss because of these extensions. B. Exclusions This insurance does not apply to any of the following: 1. Expected Or Intended Injury "Bodily injury" or "property damage" ex- pected or intended from the standpoint of the "insured". 2. Contractual Liability assumed under any contract or agreement. But this exclusion does not apply to li- ability for damages: a. Assumed in a contract or agreement that is an "insured contract" pro- vided the "bodily injury" or "prop- erty damage" occurs subsequent to the execution of the contract or agreement; or CA 00 01 03 06 ©ISO Properties, Inc., 2005 Page 3 of 13 b. That the "insured" would have in the 6. Care, Custody Or Control absence of the contract or agree- "Property damage" to or "covered ment. pollution cost or expense" involving 3. Workers' Compensation property owned or transported by the Any obligation for which the "insured" "insured" or in the "insured's" care, cus- or the "insured's" insurer may be held tody or control. But this exclusion does liable under any workers' compensation, not apply to liability assumed under a disability benefits or unemployment com- sidetrack agreement. pensation law or any similar law. 7. Handling Of Property 4. Employee Indemnification And Employ- "Bodily injury" or "property damage" re- er's Liability sulting from the handling of property: "Bodily injury" to: a. Before it is moved from the place a. An "employee" of the "insured" where it is accepted by the "insured" arising out of and in the course of: for movement into or onto the cov- ered "auto"; or (1) Employement by the "insured"; b. After it is moved from the covered or "auto" to the place where it is finally (2) Performing the duties related to delivered by the "insured". the conduct of the "insured's" business; or $• Movement Of Property By Mechanical Device b. The spouse, child, parent, brother or "Bodily in or "property damage" re- sister of that "employee" as a con- suiting from the movement of property sequence of Paragraph a. above. by a mechanical device (other than a This exclusion applies: hand truck) unless the device is attached (1) Whether the "insured" may be to the covered "auto". liable as an employer or in any 9. Operations other capacity; and "Bodily injury" or "property damage" (2) To any obligation to share dam- arising out of the operation of: ages with or repay someone else a. Any equipment listed in Paragraphs who must pay damages because 6.b. and 6.c. of the definition of "mo - of the injury. bile equipment"; or But this exclusion does not apply to b. Machinery or equipment that is on, "bodily injury" to domestic "employees" attached to, or part of, a land vehicle not entitled to workers' compensation that would qualify under the defini- benefits or to liability assumed by the tion of "mobile equipment" if it were "insured" under an "insured contract". not subject to a compulsory or finan- For the purposes of the Coverage Form, cial responsibility law or other motor a domestic "employee" is a person en- vehicle insurance law where it is li- gaged in household or domestic work censed or principally garaged. performed principally in connection with 10. Completed Operations a residence premises. "Bodily injury" or "property damage" 5. Fellow Employee arising out of your work after that work "Bodily injury" to any fellow "employee" has been completed or abandoned. of the "insured" arising out of and in the In this exclusion, your work means: course of the fellow "employee's" em- ployment or while performing duties re- a. Work or operations performed by lated to the conduct of your business. you or on your behalf; and b. Materials, parts or equipment fur- nished in connection with such work or operations. CA 00 01 03 06 ©ISO Properties, Inc., 2005 Page 4 of 13 Your work includes warranties or repre- sentations made at any time with respect to the fitness, quality, durability or per- formance of any of the items included in Paragraphs a. or b. above. Your work will be deemed completed at the earliest of the following times: (1) When all of the work called for in your contract has been completed. (2) When all of the work to be done at the site has been completed if your contract calls for work at more than one site. (3) When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or sub- contractor working on the same pro- ject. Work that may need service, main- tenance, correction, repair or replacement, but which is otherwise complete, will be treated as complet- ed. 11. Pollution "Bodily injury" or "property damage" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollu- tants": a. That are, or that are contained in any property that is: (1) Being transported or towed by, handled, or handled for move- ment into, onto or from, the cov- ered "auto"; (2) Otherwise in the course of transit by or on behalf of the "insured"; or (3) Being stored, disposed of, treat ed or processed in or upon the covered "auto"; b. Before the "pollutants" or any prop- erty in which the "pollutants" are contained are moved from the place where they are accepted by the "in- sured" for movement into or onto the covered "auto"; or c. After the "pollutants" or any prop- erty in which the "pollutants" are contained are moved from the cov- ered "auto" to the place where they are finally delivered, disposed of or abandoned by the "insured". Paragraph a. above does not apply to fuels, lubricants, fluids, exhaust gas- es or other similar "pollutants" that are needed for or result from the normal electrical, hydraulic or me- chanical functioning of the covered "auto" or its parts, if: (1) The "pollutants" escape, seep, migrate, or are discharged, dis- persed or released directly from an "auto" part designed by its manufacturer to hold, store, re- ceive or dispose of such "pollu- tants"; and (2) The "bodily injury", "property damage" or "covered pollution cost or expense" does not arise out of the operation of any equipment listed in Paragraphs 6.b. and 6.c. of the definition of "mobile equipment". Paragraphs b. and c. above of this exclu- sion do not apply to "accidents" that occur away from premises owned by or rented to an "insured" with respect to "pollutants" not in or upon a covered "auto" if: (1) The "pollutants" or any property in which the "pollutants" are contained are upset, overturned or damaged as a result of the maintenance or use of a covered "auto"; and (2) The discharge, dispersal, seep- age, migration, release or escape of the "pollutants" is caused di- rectly by such upset, overturn or damage. 12. War "Bodily injury" or "property damage" arising directly or indirectly out of: a. War, including undeclared or civil war; b. Warlike action by a military force, including action in hindering or de- fending against an actual or expect- ed attack, by any government, sovereign or other authority using military personnel or other agents; or c. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these. CA 00 01 03 06 ©ISO Properties, Inc., 2005 Page 5 of 13 13. Racing Covered "autos" while used in any pro- fessional or organized racing or demoli- tion contest or stunting activity, or while practicing for such contest or activity. This insurance also does not apply while that covered "auto" is being prepared for such a contest or activity. C. Limit Of Insurance Regardless of the number of covered "autos", "insureds", premiums paid, claims made or vehicles involved in the "accident", the most we will pay for the total of all damages and "covered pollution cost or ex- pense" combined, resulting from any one "accident" is the Limit of Insurance for Liabil- ity Coverage shown in the Declarations. All "bodily injury," "property damage" and "covered pollution cost or expense" resulting from continuous or repeated exposure to substantially the same conditions will be con- sidered as resulting from one "accident". No one will be entitled to receive duplicate payments for the same elements of "loss" under this Coverage Form and any Medical Payments Coverage Endorsement, Uninsured Motorists Coverage Endorsement or Underin- sured Motorists Coverage Endorsement at- tached to this Coverage Part. SECTION III - PHYSICAL DAMAGE COVERAGE A. Coverage 1. We will pay for "loss" to a covered "auto" or its equipment under: a. Comprehensive Coverage. From any cause except: (1) The covered "auto's" collision with another object; or (2) The covered "auto's" overturn. b. Specified Causes of Loss Coverage. Caused by: (1) Fire, lightning or explosion; (2) Theft; (3) Windstorm, hail or earthquake; (4) Flood; (5) Mischief or vandalism; or (6) The sinking, burning, collision or derailment of any conveyance transporting the covered "auto". c. Collision Coverage. Caused by: (1) The covered "auto's" collision with another object; or (2) The covered "auto's" overturn. CA 00 01 03 06 ©ISO Properties, 2. Towing. We will pay up to the limit shown in the Declarations for towing and labor costs incurred each time a covered "auto" of the private passenger type is disabled. However, the labor must be performed at the place of disablement. 3. Glass Breakage - Hitting a Bird or Ani- mal - Falling Objects or Missiles. If you carry Comprehensive Coverage for the damaged covered "auto", we will pay for the following under Comprehen- sive Coverage: a. Glass breakage; b. "Loss" caused by hitting a bird or animal; and c. "Loss" caused by falling objects or missiles. However, you have the option of having glass breakage caused by a covered "auto's" collision or overturn considered a "loss" under Collision Coverage. 4. Coverage Extensions a. Transporation Expenses We will pay up to $20 per day to a maximum of $600 for temporary transportation expense incurred by you because of the total theft of a covered "auto" of the private pas- senger type. We will pay only for those covered "autos" for which you carry either Comprehensive or Speci- fied Causes of Loss Coverage. We will pay for temporary transportation expenses incurred during the period beginning 48 hours after the theft and ending, regardless of the poli- cy's expiration, when the covered "auto" is returned to use or we pay for its "loss". b. Loss Of Use Expenses For Hired Auto Physical Damage, we will pay expenses for which an "in- sured" becomes legally responsible to pay for loss of use of a vehicle rented or hired without a driver, un- der a written rental contract or agreement. We will pay for loss of use expenses if caused by: (1) Other than collision only if the Declarations indicate that Com- prehensive Coverage is provided for any covered "auto",- Inc., auto";Inc., 2005 Page 6 of 13 (2) Specified Causes Of Loss only if the Declarations indicate that Specified Causes Of Loss Cov- erage is provided for any cov- ered "auto; or (3) Collision only if the Declarations indicate that Collision Coverage is provided for any covered "auto". However, the most we will pay for any expenses for loss of use is $20 per day, to a maximum of $600. B. Exclusions 1. We will not pay for "loss" caused by or resulting from any of the following. Such "loss" is excluded regardless of any oth- er cause or event that contributes con- currently or in any sequence to the "loss". a. Nuclear Hazard. (1) The explosion of any weapon employing atomic fission or fu- sion; or (2) Nuclear reaction or radiation, or radioactive contamination, how- ever caused. b. War or Military Action. (1) War, including undeclared or civ- il war; (2) Warlike action by a military force, including action in hinder- ing or defending against an ac- tual or expected attack, by any government, sovereign or other authority using military person- nel or other agents; or (3) Insurrection, rebellion, revolu- tion, usurped power or action taken by governmental authority in hindering or defending against any of these. 2. We will not pay for "loss" to any cov- ered "auto" while used in any profes- sional or organized racing or demolition contest or stunting activity, or while practicing for such contest or activity. We will also not pay for "loss" to any cov- ered "auto" while that covered "auto" is being prepared for such a contest or ac- tivity. 3. We will not pay for "loss" caused by or resulting from any of the following un- less caused by other "loss" that is cov- ered by this insurance: a. Wear and tear, freezing, mechanical or electrical break- down. b. Blowouts, punctures or other road damage to tires. 4. We will not pay for "loss" to any of the following: a. Tapes, records, discs or other similar audio, visual or data electronic de- vices designed for use with audio, visual or data electronic equipment. b. Any device designed or used to de- tect speed measuring equipment such as radar or laser detectors and any jamming apparatus intended to elude or disrupt speed measurement equipment. c. Any electronic equipment, without regard to whether this equipment is permanently installed, that receives or transmits audio, visual or data signals and that is not designed sole- ly for the reproduction of sound. d. Any accessories used with the elec- tronic equipment described in Paragraph c. above. Exclusions 4.c. and 4.d. do not apply to: a. Equipment designed solely for the reproduction of sound and accesso- ries used with such equipment, pro- vided such equipment is permanently installed in the covered "auto" at the time of the "loss" or such equipment is removable from a housing unit which is permanently installed in the covered "auto" at the time of the "loss", and such equip- ment is designed to be solely op- erated by use of the power from the "auto's" electrical system, in or upon the covered "auto"; or b. Any other electronic equipment that is: (1) Necessary for the normal opera- tion of the covered "auto" or the monitoring of the covered "auto's" operating system; or CA 00 01 03 06 ©ISO Properties, Inc., 2005 Page 7 of 13 (2) An integral part of the same unit a. Pay its chosen appraiser; and housing any sound reproducing b. Bear the other expenses of the ap- equipment described in a. above praisal and umpire equally. and permanently installed in the opening of the dash or console If we submit to an appraisal, we will still of the covered "auto" normally retain our right to deny the claim. used by the manufacturer for in- 2. Duties In The Event Of Accident, Claim, stallation of a radio. Suit Or Loss 5. We will not pay for "loss" to a covered We have no duty to provide coverage "auto" due to "diminution in value". under this policy unless there has been C. Limit Of Insurance full compliance with the following duties: 1. The most we will pay for "loss" in any a. In the event of "accident", claim, one "accident" is the lesser of: "suit" or "loss", you must give us or our authorized representative prompt a. The actual cash value of the damag- notice of the "accident" or "loss". ed or stolen property as of the time Include: of the "loss"; or (1) How, when and where the "ac - b. The cost of repairing or replacing the cident" or "loss" occurred; damaged or stolen property with oth- er property of like kind and quality. (2) The "insured's" name and ad- - dress; and 2. An adjustment for depreciation and phys- ical condition will be made in (3) To the extent possible, the determining actual cash value in the names and addresses of any in - event of a total "loss". jured persons and witnesses. 3. If a repair or replacement results in bet- b. Additionally, you and any other in- "insured" volved must: ter than like kind or quality, we will not pay for the amount of the betterment. (1) Assume no obligation, make no D. Deductible payment or incur no expense without our consent, except at For each covered "auto", our obligation to the "insured's" own cost. pay for, repair, return or replace damaged or stolen property will be reduced by the ap- (2) Immediately send us copies of plicable deductible shown in the Declara- any request, demand, order, no- tions. Any Comprehensive Coverage tice, summons or legal paper re - deductible shown in the Declarations does ceived concerning the claim or not apply to "loss" caused by fire or light- "suit". ning. (3) Cooperate with us in the inves- SECTION IV - BUSINESS AUTO CONDITIONS tigation or settlement of the claim or defense against the The following conditions apply in addition to the "suit". Common Policy Conditions: - (4) Authorize us to obtain medical ° A. Loss Conditions records or other pertinent infor- 1. Appraisal For Physical Damage Loss mation. If you and we disagree on the amount of (5) Submit to examination, at our "loss", either may demand an appraisal expense, by physicians of our of the "loss". In this event, each party choice, as often as we reason - will select a competent appraiser. The ably require. two appraisers will select a competent c. If there is "loss" to a covered "auto" and impartial umpire. The appraisers will or its equipment you must also do state separately the actual cash value the following: and amount of "loss". If they fail to agree, they will submit their differences (1) Promptly notify the police if the to the umpire. A decision agreed to by covered "auto" or any of its any two will be binding. Each party will: equipment is stolen. CA 00 01 03 06 ©ISO Properties, Inc., 2005 Page 8 of 13 (2) Take all reasonable steps to pro- tect the covered "auto" from fur- ther damage. Also keep a record of your expenses for consider- ation in the settlement of the claim. (3) Permit us to inspect the covered "auto" and records proving the "loss" before its repair or dis- position. (4) Agree to examinations under oath at our request and give us a signed statement of your an- swers. 3. Legal Action Against Us No one may bring a legal action against us under this Coverage Form until: a. There has been full compliance with all the terms of this Coverage Form; and b. Under Liability Coverage, we agree in writing that the "insured" has an obligation to pay or until the amount of that obligation has finally been determined by judgment after trial. No one has the right under this poli- cy to bring us into an action to deter- mine the "insured's" liability. 4. Loss Payment - Physical Damage Coverages At our option we may: a. Pay for, repair or replace damaged or stolen property; b. Return the stolen property, at our ex- pense. We will pay for any damage that results to the "auto" from the theft; or c. Take all or any part of the damaged or stolen property at an agreed or appraised value. If we pay for the "loss", our payment will include the applicable sales tax for the damaged or stolen property. 5. Transfer Of Rights Of Recovery Against Others To Us If any person or organization to or for whom we make payment under this Cov- erage Form has rights to recover dam- ages from another, those rights are transferred to us. That person or organi- zation must do everything necessary to secure our rights and must do nothing after "accident" or "loss" to impair them. B. General Conditions 1. Bankruptcy Bankruptcy or insolvency of the "in- sured" or the "insured's" estate will not relieve us of any obligations under this Coverage Form. 2. Concealment, Misrepresentation Or Fraud This Coverage Form is void in any case of fraud by you at any time as it relates to this Coverage Form. It is also void if you or any other "insured", at any time, intentionally conceal or misrepresent a material fact concerning: a. This Coverage Form; b. The covered "auto"; c. Your interest in the covered "auto"; or d. A claim under this Coverage Form 3. Liberalization If we revise this Coverage Form to pro- vide more coverage without additional premium charge, your policy will auto- matically provide the additional coverage as of the day the revision is effective in your state. 4. No Benefit To Bailee - Physical Damage Coverages We will not recognize any assignment or grant any coverage for the benefit of any person or organization holding, storing or transporting property for a fee regard- less of any other provision of this Cov- erage Form. CA 00 01 03 06 ©ISO Properties, Inc., 2005 Page 9 of 13 5. Other Insurance b. If this policy is issued for more than a. For any covered "auto" you own, one year, the premium for this Cov- this Coverage Form provides primary erage Form will be computed annu- insurance. For any covered "auto" ally based on our rates or premiums you don't own, the insurance pro- in effect at the beginning of each vided by this Coverage Form is ex- year of the policy. cess over any other collectible 7. Policy Period, Coverage Territory insurance. However, while a covered Under this Coverage Form, we cover "ac- ' auto" which is a "trailer" is con- cidents" and "losses" occurring: nected to another vehicle, the Liabil- ity Coverage this Coverage Form a. During the policy period shown in provides for the "trailer" is: the Declarations; and (1) Excess while it is connected to a b. Within the coverage territory. motor vehicle you do not own. The coverage territory is: (2) Primary while it is connected to a. The United States of America; a covered "auto" you own. b. The territories and possessions of b. For Hired Auto Physical Damage the United States of America; Coverage, any covered "auto" you c. Puerto Rico; lease, hire, rent or borrow is deemed to be a covered "auto" you own. d. Canada; and However, any "auto" that is leased, e. Anywhere in the world if: hired, rented or borrowed with a driver is not a covered "auto". (1) A covered "auto" of the private passenger type is leased, hired, c. Regardless of the provisions of Para- rented or borrowed without a graph a. above, this Coverage Form's driver for a period of 30 days or Liability Coverage is primary for any less; and liability assumed under an "insured contract". (2) The "insured's" responsibility to pay damages is determined in a d. When this Coverage Form and any "suit" on the merits, in the Unit - other Coverage Form or policy cov- ed States of America, the ter- ers on the same basis, either excess ritories and possessions of the or primary, we will pay only our United States of America, Puerto share. Our share is the proportion Rico, or Canada or in a settle - that the Limit of Insurance of our ment we agree to. Coverage Form bears to the total of the limits of all the Coverage Forms We also cover "loss" to, or "accidents" and policies covering on the same involving, a covered "auto" while being basis. transported between any of these places. 6. Premium Audit 8. Two Or More Coverage Forms Or Poli- cies Issued By Us o a. The estimated premium for this Cov- erage Form is based on the expo- erage If this Coverage Form and any other Cov- you told us you would have erage Form or policy issued to you by us when this policy began. We will or any company affiliated with us apply compute the final premium due to the same "accident", the aggregate when we determine your actual ex- maximum Limit of Insurance under all posures. The estimated total premi- the Coverage Forms or policies shall not um will be credited against the final exceed the highest applicable Limit of premium due and the first Named Insurance under any one Coverage Form Insured will be billed for the balance, or policy. This condition does not apply if any. If the estimated total premium to any Coverage Form or policy issued exceeds the final premium due, the by us or an affiliated company specifi- first Named Insured will get a re- cally to apply as excess insurance over fund. this Coverage Form. CA 00 01 03 06 ©ISO Properties, Inc., 2005 Page 10 of 13 SECTION V - DEFINITIONS b. Before the "pollutants" or any prop - A. "Accident" includes continuous or repeated erty in which the "pollutants" are exposure to the same conditions resulting in contained are moved from the place "bodily injury" or "property damage". where they are accepted by the "in - B. "Auto" means; sured" for movement into or onto the covered "auto"; or 1. A land motor vehicle, "trailer" or semi- trailer designed for travel on public c. After the "pollutants" or any prop - roads; or erty in which the "pollutants" are 2. Any other land vehicle that is subject to contained are moved from the cov- "auto ered to the place where they a compulsory or financial responsbility are finally delivered, disposed of or law or other motor vehicle insurance law abandoned by the "insured where it is licensed or principally ga- raged. Paragraph a. above does not apply to However, "auto" does not include "mobile fuels, lubricants, fluids, exhaust gas - equipment". es or other similar "pollutants" that are needed for or result from the C. "Bodily injury" means bodily injury, sickness normal electrical, hydraulic or me - or disease sustained by a person including chanical functioning of the covered death resulting from any of these. "auto" or its parts, if: D. "Covered pollution cost or expense" means (1) The "pollutants" escape, seep, any cost or expense arising out of: migrate, or are discharged, dis- t. Any request, demand, order or statutory persed or released directly from or regulatory requirement that any "in- an "auto" part designed by its sured" or others test for, monitor, clean manufacturer to hold, store, re - up, remove, contain, treat, detoxify or ceive or dispose of such "pollu- neutralize, or in any way respond to, or tants"; and assess the effects of "pollutants"; or (2) The "bodily injury," "property 2. Any claim or "suit" by or on behalf of a damage" or "covered pollution governmental authority for damages be- cost or expense" does not arise cause of testing for, monitoring, cleaning out of the operation of any up, removing, containing, treating, detox- equipment listed in Paragraphs ifying or neutralizing, or in any way re- 6.b. or 6.c. of the definition of sponding to or assessing the effects of "mobile equipment." "pollutants". Paragraphs b. and c. above do not "Covered pollution cost or expense" does not apply to "accidents" that occur away include any cost or expense arising out of from premises owned by or rented the actual, alleged or threatened discharge, to an "insured" with respect to "pol- dispersal, seepage, migration, release or es- lutants" not in or upon a covered cape of "pollutants": "auto" if: a. That are, or that are contained in any (1) The "pollutants" or any property property that is: in which the "pollutants" are contained are upset, overturned (1) Being transported or towed by, or damaged as a result of the handled, or handled for move- maintenance or use of a covered ment into, onto or from the cov- "auto"; and ered "auto"; (2) The discharge, dispersal, seep - (2) Otherwise in the course of age, migration, release or escape transit by or on behalf of the of the "pollutants" is caused di - "insured"; rectly by such upset, overturn or (3) Being stored, disposed of, treat- damage. ed or processed in or upon the covered "auto"; or CA 00 01 03 06 ©ISO Properties, Inc., 2005 Page 11 of 13 E. "Diminution in value" means the actual or perceived loss in market value or resale val- ue which results from a direct and accidental "loss". F. "Employee" includes a "leased worker". "Employee" does not include a "temporary worker". G. "Insured" means any person or organization qualifying as an insured in the Who Is An Insured provision of the applicable coverage. Except with respect to the Limit of Insurance, the coverage afforded applies separately to each insured who is seeking coverage or against whom a claim or "suit' is brought. H. "Insured contract' means: 1. A lease of premises; 2. A sidetrack agreement; 3. Any easement or license agreement, ex- cept in connection with construction or demolition operations on or within 50 feet of a railroad; 4. An obligation, as required by ordinance, to indemnify a municipality, except in connection with work for a municipality; 5. That part of any other contract or agree- ment pertaining to your business (includ- ing an indemnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another to pay for "bodily injury" or "property damage" to a third person or organization. Tort liabil- ity means a liability that would be im- posed by law in the absence of any contract or agreement. 6. That part of any contract or agreement entered into, as part of your business, pertaining to the rental of lease, by you or any of your "employees", of any "auto." However, such contract or agree- ment shall not be considered an "insured contract' to the extent that it obligates you or any of your "employees" to pay for "property damage" to any "auto" re- nted or leased by you or any of your "employees". An "insured contract' does not include that part of any contract or agreement: a. That indemnifies a railroad for "bod- ily injury" or "property damage" arising out of construction or demoli- tion operations, within 50 feet of any railroad property and affecting any railroad bridge or trestle, tracks, road beds, tunnel, underpass or crossing; or b. That pertains to the loan, lease or rental of an "auto" to you or any of your "employees", if the "auto" is loaned, leased or rented with a driv- er; or c. That holds a person or organization engaged in the business of transport- ing property by "auto" for hire harm- less for your use of a covered "auto" over a route or territory that person or organization is authorized to serve by public authority. I. "Leased worker" means a person leased to you by a labor leasing firm under an agree- ment between you and the labor leasing firm, to perform duties related to the conduct of your business. "Leased worker" does not in- clude a "temporary worker". J. "Loss" means direct and accidental loss or damage. K. "Mobile equipment' means any of the fol- lowing types of land vehicles, including any attached machinery or equipment: 1. Bulldozers, farm machinery, forklifts and other vehicles designed for use princi- pally off public roads; 2. Vehicles maintained for use solely on or next to premises you own or rent; 3. Vehicles that travel on crawler treads,- 4. reads;4. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted: a. Power cranes, shovels, loaders, dig- gers or drills; or b. Road construction or resurfacing equipment such as graders, scrapers or rollers. CA 00 01 03 06 ©ISO Properties, Inc., 2005 Page 12 of 13 5. Vehicles not described in Paragraphs 1., L. "Pollutants" means any solid, liquid, gaseous 2., 3., or 4. above that are not self -pro- or thermal irritant or contaminant, including pelled and are maintained primarily to smoke, vapor, soot, fumes, acids, alkalis, provide mobility to permanently attached chemicals and waste. Waste includes materi- equipment of the following types: als to be recycled, reconditioned or re - a. Air compressors, pumps and gener- claimed. ators, including spraying, welding, M. "Property damage" means damage to or loss building cleaning, geophysical explo- of use of tangible property. ration, lighting and well servicing N. "Suit" means a civil proceeding in which: equipment; or b. Cherry pickers and similar devices 1. Damages because of "bodily injury" or used to raise or lower workers. "property damage"; or 6. Vehicles not described in Paragraphs 1., 2. A "covered pollution cost or expense", 2., 3. or 4. above maintained primarily to which this insurance applies, are alleged. for purposes other than the transporta- "Suit" includes: tion of persons or cargo. However, self- propelled vehicles with the following a. An arbitration proceeding in which types of permanently attached equipment such damages or "covered pollution are not "mobile equipment" but will be costs or expenses" are claimed and considered "autos": to which the "insured" must submit or does submit with our consent; or a. Equipment designed primarily for: b. Any other alternative dispute resolu- (1) Snow removal; tion proceeding in which such dam - (2) Road maintenance, but not con- ages or "covered pollution costs or struction or resurfacing; or expenses" are claimed and to which (3) Street cleaning; the insured submits with our con- sent. b. Cherry pickers and similar devices mounted on automobile or truck O. "Temporary worker" means a person who is chassis and used to raise or lower furnished to you to substitute for a perma- workers; and nent "employee" on leave or to meet sea- sonal or short-term workload conditions. c. Air compressors, pumps and gener£tors, including spraying, weld- ing, building cleaning, geophysical exploration, lighting or well servicing equipment. However, "mobile equipment" does not in- clude land vehicles that are subject to a com- pulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged. Land vehicles subject to a compulsory or financial respon- sibility law or other motor vehicle insurance law are considered "autos". CA 00 01 03 06 ©ISO Properties, Inc., 2005 Page 13 of 13 HOME OFFICE SAN FRANCISCO ALL EFFECTIVE DATES ARE AT 12:01 AM PACIFIC STANDARD TIME OR THE TIME INDICATED AT PACIFIC STANDARD TIME ENDORSEMENT AGREEMENT WAIVER OF SUBROGATION BLANKET BASIS BROKER COPY EFFECTIVE JULY 1, 2019 AT 12.01 A.M. AND EXPIRING JULY 1, 2020 AT 12.01 A.M. TURBO DATA SYSTEMS INC 18302 IRVINE BLVD STE 200 TUSTIN, CA 92780 WE HAVE THE RIGHT TO RECOVER OUR PAYMENTS FROM ANYONE LIABLE FOR AN INJURY COVERED BY THIS POLICY. WE WILL NOT ENFORCE OUR RIGHT AGAINST THE PERSON OR ORGANIZATION NAMED IN THE SCHEDULE. THIS AGREEMENT APPLIES ONLY TO THE EXTENT THAT YOU PERFORM WORK UNDER A WRITTEN CONTRACT THAT REQUIRES YOU TO OBTAIN THIS AGREEMENT FROM US. THE ADDITIONAL PREMIUM FOR THIS ENDORSEMENT SHALL BE 2.00% OF THE TOTAL POLICY PREMIUM. SCHEDULE PERSON OR ORGANIZATION ANY PERSON OR ORGANIZATION FOR WHOM THE NAMED INSURED HAS AGREED BY WRITTEN CONTRACT TO FURNISH THIS WAIVER JOB DESCRIPTION BLANKET WAIVER OF SUBROGATION 9103640-19 RENEWAL SP PAGE 1 OF 1 NOTHING IN THIS ENDORSEMENT CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF THE TERMS, CONDITIONS, AGREEMENTS, OR LIMITATIONS OF THIS POLICY OTHER THAN AS STATED. NOTHING ELSEWHERE IN THIS POLICY SHALL BE HELD TO VARY, ALTER, WAIVE OR LIMIT THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THIS ENDORSEMENT. COUNTERSIGNED AND ISSUED AT SAN FRANCISCO: MAY 9, 2019 AUTHORIZED REPRESENT IVE PRESIDENT AND CEO SCIF FORM 10217 (REV.7-2014) 2572 OLD DP 217 POLICY NUMBER: BAS (20) 56 60 46 10 COMMERCIAL AUTO, CA 88 10 01 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BUSINESS AUTO COVERAGE ENHANCEMENT ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM With respect to coverage afforded by this endorsement, the provisions of the policy apply unless modified by the endorsement. COVERAGEINDEX SUBJECT PROVISION NUMBER ADDITIONAL INSURED BY CONTRACT, AGREEMENT OR PERMIT 3 ACCIDENTAL AIRBAG DEPLOYMENT 12 AMENDED DUTIES IN THE EVENT OF ACCIDENT, CLAIM, SUIT OR LOSS 19 AMENDED FELLOW EMPLOYEE EXCLUSION 5 AUDIO, VISUAL AND DATA ELECTRONIC EQUIPMENT COVERAGE 13 BROAD FORM INSURED 1 BODILY INJURY REDEFINED 22 EMPLOYEES AS INSUREDS (including employee hired auto) 2 EXTENDED CANCELLATION CONDITION 23 EXTRA EXPENSE -BROADENED COVERAGE 10 GLASS REPAIR -WAIVER OF DEDUCTIBLE 15 HIRED AUTO PHYSICAL DAMAGE (including employee hired auto and loss of use) 6 HIRED AUTO COVERAGE TERRITORY 20 LOAN / LEASE GAP 14 PARKED AUTO COLLISION COVERAGE (WAIVER OF DEDUCTIBLE) 16 PERSONAL EFFECTSCOVERAGE 11 PHYSICAL DAMAGE - ADDITIONAL TRANSPORTATION EXPENSE COVERAGE 8 RENTAL REIMBURSEMENT 9 SUPPLEMENTARY PAYMENTS 4 TOWING AND LABOR 7 TWO OR MORE DEDUCTIBLES 17 UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS 18 WAIVER OF TRANSFER OF RIGHTS OF RECOVERYAGAINST OTHERS TO US 20 SECTION II - LIABILITY COVERAGE is amended as follows: 1. BROAD FORM INSURED ° SECTION II - LIABILITY COVERAGE, paragraph A.I. - WHO IS AN INSURED is amended to include the following as an insured: d. Any legally incorporated entity of which you own more than 50 percent of the voting stock m during the policy period. However, "insured" does not include any organization that: (1) Is a partnership or joint venture; or (2) Is an insured under any other automobile policy; or (3) Has exhausted its Limit of Insurance under any other automobile policy. Paragraph d. (2) of this provision does not apply to a policy written to apply specifically in excess of this policy. e. Any organization you newly acquire or form, other than a partnership or joint venture, of which you own more than 50 percent of the voting stock. This automatic coverage is afforded only for 180 days from the date of acquisition or formation. However, coverage under this provision does not apply: (1) If there is similar insurance or a self-insured retention plan available to that organization; © 2013 Liberty Mutual Insurance CA 88 10 01 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 7 (2) If the Limits of Insurance of any other insurance policy have been exhausted; or (3) To "bodily injury" or "property damage" that occurred before you acquired or formed the organization. 2. EMPLOYEES AS INSUREDS SECTION II - LIABILITY COVERAGE, paragraph A.I. - WHO IS AN INSURED is amended to include the following as an insured: f. Any "employee" of yours while using a covered "auto" you do not own, hire or borrow, but only for acts within the scope of their employment by you. Insurance provided by this endorse- ment is excess over any other insurance available to any "employee". g. An "employee" of yours while operating an "auto" hired or borrowed under a written contract or agreement in that "employee's" name, with your permission, while performing duties re- lated to the conduct of your business and within the scope of their employment. Insurance provided by this endorsement is excess over any other insurance available to the "employee". 3. ADDITIONAL INSURED BY CONTRACT, AGREEMENT OR PERMIT SECTION II - LIABILITY COVERAGE, paragraph A.I. - WHO IS AN INSURED is amended to include the following as an insured: h. Any person or organization with respect to the operation, maintenance or use of a covered "auto", provided that you and such person or organization have agreed in a written contract, agreement, or permit issued to you by governmental or public authority, to add such person, or organization, or governmental or public authority to this policy as an "insured". However, such person or organization is an "insured": (1) Only with respect to the operation, maintenance or use of a covered "auto"; (2) Only for "bodily injury" or "property damage" caused by an "accident" which takes place after you executed the written contract or agreement, or the permit has been issued to you; and (3) Only for the duration of that contract, agreement or permit 4. SUPPLEMENTARY PAYMENTS SECTION II - LIABILITY COVERAGE, Coverage Extensions, 2.a. Supplementary Payments, para- graphs (2) and (4) are replaced by the following: (2) Up to $3,000 for cost of bail bonds (including bonds for related traffic violations ) required because of an "accident" we cover. We do not have to furnish these bonds. (4) All reasonable expenses incurred by the insured at our request, including actual loss of earn- ings up to $500 a day because of time off from work. 5. AMENDED FELLOW EMPLOYEE EXCLUSION In those jurisdictions where, by law, fellow employees are not entitled to the protection afforded to the employer by the workers compensation exclusivity rule, or similar protection, the following provision is added: SECTION II - LIABILITY, exclusion B.5. FELLOW EMPLOYEE does not apply if the "bodily injury" results from the use of a covered "auto" you own or hire. SECTION III - PHYSICAL DAMAGE COVERAGE is amended as follows: 6. HIRED AUTO PHYSICAL DAMAGE Paragraph A.4. Coverage Extensions of SECTION III - PHYSICAL DAMAGE COVERAGE, is amended by adding the following: If hired "autos" are covered "autos" for Liability Coverage, and if Comprehensive, Specified Causes of Loss or Collision coverage are provided under the Business Auto Coverage Form for any "auto" you own, then the Physical Damage coverages provided are extended to "autos": a. You hire, rent or borrow; or © 2013 Liberty Mutual Insurance CA 88 10 01 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 2 of 7 b. Your "employee" hires or rents under a written contract or agreement in that "employee's" name, but only if the damage occurs while the vehicle is being used in the conduct of your business, subject to the following limit and deductible: A. The most we will pay for "loss" in any one "accident" or "loss" is the smallest of: (1) $50,000; or (2) The actual cash value of the damaged or stolen property as of the time of the "loss"; or (3) The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality, minus a deductible. B. The deductible will be equal to the largest deductible applicable to any owned "auto" for that coverage. C. Subject to the limit, deductible and excess provisions described in this provision, we will provide coverage equal to the broadest coverage applicable to any covered "auto" you own. D. Subject to a maximum of $1,000 per "accident", we will also cover the actual loss of use of the hired "auto" if it results from an "accident", you are legally liable and the lessor incurs an actual financial loss. E. This coverage extension does not apply to: (1) Any "auto" that is hired, rented or borrowed with a driver; or (2) Any "auto" that is hired, rented or borrowed from your "employee". For the purposes of this provision, SECTION V - DEFINITIONS is amended by adding the following: "Total loss" means a "loss" in which the cost of repairs plus the salvage value exceeds the actual cash value. 7. TOWING AND LABOR SECTION III - PHYSICAL DAMAGE COVERAGE, paragraph A.2. Towing, is amended by the addition of the following: We will pay towing and labor costs incurred, up to the limits shown below, each time a covered "auto" classified and rated as a private passenger type, "light truck" or "medium truck" is dis- abled.- a. is- abled:a. For private passenger type vehicles, we will pay up to $50 per disablement. b. For "light trucks", we will pay up to $50 per disablement. "Light trucks" are trucks that have a gross vehicle weight (GVW) of 10,000 pounds or less. c. For "medium trucks" , we will pay up to $150 per disablement. "Medium trucks" are trucks that have a gross vehicle weight (GVW) of 10,001 - 20,000 pounds. However, the labor must be performed at the place of disablement. 8. PHYSICAL DAMAGE -ADDITIONAL TRANSPORTATION EXPENSE COVERAGE Paragraph AA.a., Coverage Extension of SECTION III - PHYSICAL DAMAGE COVERAGE, is amend- ed to provide a limit of $50 per day and a maximum limit of $1,500 © 2013 Liberty Mutual Insurance CA 88 10 01 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 3 of 7 9. RENTAL REIMBURSEMENT SECTION III - PHYSICAL DAMAGE COVERAGE, A. COVERAGE, is amended by adding the following: a. We will pay up to $75 per day for rental reimbursement expenses incurred by you for the rental of an "auto" because of "accident" or "loss", to an "auto" for which we also pay a "loss" under Comprehensive, Specified Causes of Loss or Collision Coverages. We will pay only for those expenses incurred after the first 24 hours following the "accident" or "loss" to the covered "auto." b. Rental Reimbursement will be based on the rental of a comparable vehicle, which in many cases may be substantially less than $75 per day, and will only be allowed for the period of time it should take to repair or replace the vehicle with reasonable speed and similar quality, up to a maximum of 30 days. c. We will also pay up to $500 for reasonable and necessary expenses incurred by you to remove and replace your tools and equipment from the covered "auto". d. This coverage does not apply unless you have a business necessity that other "autos" avail- able for your use and operation cannot fill. e. If "loss" results from the total theft of a covered "auto" of the private passenger type, we will pay under this coverage only that amount of your rental reimbursement expenses which is not already provided under Paragraph 4. Coverage Extension. f. No deductible applies to this coverage. For the purposes of this endorsement provision, materials and equipment do not include "personal effects" as defined in provision 11. 10. EXTRA EXPENSE - BROADENED COVERAGE Under SECTION III - PHYSICAL DAMAGE COVERAGE, A. COVERAGE, we will pay for the expense of returning a stolen covered "auto" to you. The maximum amount we will pay is $1,000. 11. PERSONAL EFFECTS COVERAGE A. SECTION III - PHYSICAL DAMAGE COVERAGE, A. COVERAGE, is amended by adding the following: If you have purchased Comprehensive Coverage on this policy for an "auto" you own and that "auto" is stolen, we will pay, without application of a deductible, up to $600 for "personal effects" stolen with the "auto." The insurance provided under this provision is excess over any other collectible insurance. B. SECTION V- DEFINITIONS is amended by adding the following: For the purposes of this provision, "personal effects" mean tangible property that is worn or carried by an insured." "Personal effects" does not include tools, equipment, jewelry, money or securities. 12. ACCIDENTAL AIRBAG DEPLOYMENT SECTION III - PHYSICAL DAMAGE COVERAGE, B. EXCLUSIONS is amended by adding the follow- ing: If you have purchased Comprehensive or Collision Coverage under this policy, the exclusion for "loss" relating to mechanical breakdown does not apply to the accidental discharge of an airbag. Any insurance we provide shall be excess over any other collectible insurance or reimbursement by manufacturer's warranty. However, we agree to pay any deductible applicable to the other cov- erage or warranty. 13. AUDIO, VISUAL AND DATA ELECTRONIC EQUIPMENT COVERAGE SECTION III - PHYSICAL DAMAGE COVERAGE, B. EXCLUSIONS, exception paragraph a. to exclu- sions 4.c. and 4.d. is deleted and replaced with the following: © 2013 Liberty Mutual Insurance CA 88 10 011 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 4 of 7 Exclusion 4.c. and 4.d. do not apply to: a. Electronic equipment that receives or transmits audio, visual or data signals, whether or not designed solely for the reproduction of sound, if the equipment is permanently installed in the covered "auto" at the time of the "loss" and such equipment is designed to be solely operated by use of the power from the "auto's" electrical system, in or upon the covered "auto" and physical damage coverages are provided for the covered "auto"; or If the "loss" occurs solely to audio, visual or data electronic equipment or accessories used with this equipment, then our obligation to pay for, repair, return or replace damaged or stolen property will be reduced by a $100 deductible. 14. LOAN/ LEASE GAP COVERAGE A. Paragraph C., LIMIT OF INSURANCE of SECTION III - PHYSICAL DAMAGE COVERAGE is amended by adding the following: The most we will pay for a "total loss" to a covered "auto" owned by or leased to you in any one "accident" is the greater of the: 1. Balance due under the terms of the loan or lease to which the damaged covered "auto" is subject at the time of the "loss" less the amount of: a. Overdue payments and financial penalties associated with those payments as of the date of the "loss", b. Financial penalties imposed under a lease due to high mileage, excessive use or ab- normal wear and tear, c. Costs for extended warranties, Credit Life Insurance, Health, Accident or Disability Insurance purchased with the loan or lease, d. Transfer or rollover balances from previous loans or leases, e. Final payment due under a "Balloon Loan", f. The dollar amount of any unrepaired damage which occurred prior to the "total loss" of a covered "auto", g. Security deposits not refunded by a lessor, h. All refunds payable or paid to you as a result of the early termination of a lease agreement or as a result of the early termination of any warranty or extended service agreement on a covered "auto", L Any amount representing taxes, j. Loan or lease termination fees; or 2. The actual cash value of the damage or stolen property as of the time of the "loss". An adjustment for depreciation and physical condition will be made in determining the actual cash value at the time of the "loss". This adjustment is not applicable in Texas. B. ADDITIONAL CONDITIONS This coverage applies only to the original loan for which the covered "auto" that incurred the loss serves as collateral, or lease written on the covered "auto" that incurred the loss. C. SECTION V - DEFINTIONS is changed by adding the following: As used in this endorsement provision, the following definitions apply: "Total loss" means a "loss" in which the cost of repairs plus the salvage value exceeds the actual cash value. A "balloon loan" is one with periodic payments that are insufficient to repay the balance over the term of the loan, thereby requiring a large final payment. © 2013 Liberty Mutual Insurance CA 88 10 01 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 5 of 7 15. GLASS REPAIR - WAIVER OF DEDUCTIBLE Paragraph D. Deductible of SECTION III - PHYSICAL DAMAGE COVERAGE is amended by the addition of the following: No deductible applies to glass damage if the glass is repaired rather than replaced. 16. PARKED AUTO COLLISION COVERAGE (WAIVER OF DEDUCTIBLE) Paragraph D. Deductible of SECTION III - PHYSICAL DAMAGE COVERAGE is amended by the addition of the following: The deductible does not apply to "loss" caused by collision to such covered "auto" of the private passenger type or light weight truck with a gross vehicle weight of 10,000 lbs. or less as defined by the manufacturer as maximum loaded weight the "auto" is designed to carry while it is: a. In the charge of an "insured"; b. Legally parked; and c. Unoccupied. The "loss" must be reported to the police authorities within 24 hours of known damage. The total amount of the damage to the covered "auto" must exceed the deductible shown in the Declarations. This provision does not apply to any "loss" if the covered "auto" is in the charge of any person or organization engaged in the automobile business. 17. TWO OR MORE DEDUCTIBLES Under SECTION III PHYSICAL DAMAGE COVERAGE, if two or more company policies or coverage forms apply to the same accident, the following applies to paragraph D. Deductible: a. If the applicable Business Auto deductible is the smaller (or smallest) deductible it will be waived; or b. If the applicable Business Auto deductible is not the smaller (or smallest) deductible it will be reduced by the amount of the smaller (or smallest) deductible; or c. If the loss involves two or more Business Auto coverage forms or policies the smaller (or smallest) deductible will be waived. For the purpose of this endorsement company means any company that is part of the Liberty Mutual Group. SECTION IV - BUSINESS AUTO CONDITIONS is amended as follows: 18. UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS SECTION IV- BUSINESS AUTO CONDITIONS, Paragraph B.2. is amended by adding the following: If you unintentionally fail to disclose any hazards, exposures or material facts existing as of the inception date or renewal date of the Business Auto Coverage Form, the coverage afforded by this policy will not be prejudiced. However, you must report the undisclosed hazard of exposure as soon as practicable after its discovery, and we have the right to collect additional premium for any such hazard or exposure. 19. AMENDED DUTIES IN THE EVENT OF ACCIDENT, CLAIM, SUIT, OR LOSS ° SECTION IV - BUSINESS AUTO CONDITIONS, paragraph A.2.a. is replaced in its entirety by the following: a. In the event of "accident', claim, "suit" or "loss", you must promptly notify us when it is known to: 1. You, if you are an individual; 2. A partner, if you are a partnership,- 3. artnership;3. Member, if you are a limited liability company; 4. An executive officer or the "employee" designated by the Named Insured to give such notice, if you are a corporation. © 2013 Liberty Mutual Insurance CA 88 10 01 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 6 of 7 To the extent possible, notice to us should include: (1) How, when and where the "accident" or "loss" took place; (2) The "insureds" name and address; and (3) The names and addresses of any injured persons and witnesses. 20. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US SECTION IV - BUSINESS AUTO CONDITIONS, paragraph A.5., Transfer of Rights of Recovery Against Others to Us, is amended by the addition of the following: If the person or organization has waived those rights before an "accident" or "loss", our rights are waived also. 21. HIRED AUTO COVERAGE TERRITORY SECTION IV - BUSINESS AUTO CONDITIONS, paragraph B.7., Policy Period, Coverage Territory, is amended by the addition of the following: f. For "autos" hired 30 days or less, the coverage territory is anywhere in the world, provided that the insured's responsibility to pay for damages is determined in a "suit", on the merits, in the United States, the territories and possessions of the United States of America, Puerto Rico or Canada or in a settlement we agree to. This extension of coverage does not apply to an "auto" hired, leased, rented or borrowed with a driver. SECTION V - DEFINITIONS is amended as follows: 22. BODILY INJURY REDEFINED Under SECTION V - DEFINTIONS, definition C. is replaced by the following: "Bodily injury" means physical injury, sickness or disease sustained by a person, including mental anguish, mental injury, shock, fright or death resulting from any of these at any time. COMMMON POLICY CONDITIONS 23. EXTENDED CANCELLATION CONDITION COMMON POLICY CONDITIONS, paragraph A. - CANCELLATION condition applies except as fol- lows: If we cancel for any reason other than nonpayment of premium, we will mail to the first Named Insured written notice of cancellation at least 60 days before the effective date of cancellation. This provision does not apply in those states which require more than 60 days prior notice of cancella- tion. © 2013 Liberty Mutual Insurance CA 88 10 01 13 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 7 of 7