Alameda City Council
December 16, 2025

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CONSTRUCTION AGREEMENT

THIS CONSTRUCTION AGREEMENT (“Agreement”) is entered into this _____ day of ___________ 2025, by and between the CITY OF ALAMEDA, a municipal corporation ( “the City"), and Mar Con Builders Inc., a California corporation whose address is 8108A Capwell Drive, Oakland, CA 94621, (“Contractor”), in reference to the following:

RECITALS:

A. The City is a municipal corporation duly or ganized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the City’s Charter.

B. The City is in need of the following services: Renovate Building 2, Wing 3 to relocate the Alameda Day Center. City staff issued an IFB on October 10, 2025, after a submittal period of 27 days received seven timely submitted bids , and the bids were opened on November 5, 2025. Staff reviewed the bids and selected the lowest responsive and responsible bidder.

C. Contractor possesses the skill, experien ce, ability, background, certification and knowledge to provide the services described in this Agreement, and desires to perform and assume responsibility for those services on the terms and conditions described herein. Contractor has obtained, and delivers concurrently herew ith, a performance bond, a payment bond, and all insurance documentation, as required by this Agreement.

D. Whereas, the City Council authorized the City Manager to execute this agreement on December 16, 2025.

E. The City and Contractor desire to enter in to an agreement for renovation of Building 2, Wing 3 to relocate the Alameda Day Center, upon the terms and conditions herein.

NOW, THEREFORE, in consideration of the fo rgoing, which are incorporated herein by reference, and for other good and valuable consider ation, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. TERM:

Contractor shall have 150 consecutive wo rking days from the date the work is to commence pursuant to the Notice to Proceed to diligently prosecute the work to completion.

2. SERVICES TO BE PERFORMED:

Contractor agrees, at its own cost and expens e, to furnish all labor, tools, equipment, materials, except as otherwise specified, and to do all work strictly in accordance with the Specifications, Special Provisions and Plans, which Specifications, Special Provisions and Plans are hereby referred to and expressly made a part he reof with the same force and effect as if the same were fully incorporated herein. Contract or acknowledges that the work plan included in Exhibit A is tentative and does not commit the Ci ty to request Contractor to perform all tasks included therein.








 






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3. COMPENSATION TO CONTRACTOR:

Contractor shall be compensated for services performed pursuant to this Agreement in the amount and manner set forth in Contractor's bid, which is attached hereto as Exhibit A and incorporated herein by this reference. Payment will be made in the same manner that claims of a like character are paid by the City, with checks drawn on the treasury of the City.

Payment will be made by the City in the following manner: On the first day of each month, Contractor shall submit a written estimate of the total amount of work done the previous month. However, the City reserves the right to adjust budget within and between tasks. Pricing and accounting of charges are to be according to the bid packet pricing, unless mutually agreed to in writing.

Payment shall be made for 95% of the value of the work completed as determined by the City. The City shall retain 5% of the value of th e work as partial security for the completion of the work by Contractor. Retained amounts shall be paid to Contractor within sixty days of acceptance by the City of the project. Payment sh all not be construed as acceptance of defective work. No interest will be paid to Contractor on retained funds.

Total compensation for work is $2,439,406, with a 10 percent contingency in the amount of $243,940.60 for a total not to exceed of $2,683,346.60. Use of contingency shall be for items of work outside the original scope and requires prior written authorization by the City.

Prompt Payment Of Withheld Funds To S ubcontractors: The City shall hold retainage from the prime contractor and shall, as determined by the City, make prompt and regular incremental acceptances of portions of the cont ract work and pay retainage to the prime contractor based on these acceptances. The prime contractor or subcontractor shall return all monies withheld in retention from all subcontractors within 30 days after receiving payment for work satisfactorily completed and accepted by the City, including incremental acceptances of portions of the contract work. Any delay or postponement of payment may take place only for good cause and with the City ’s prior written approval. Any violation of these provisions shall subject the violating prime contractor to the pe nalties, sanctions, and other remedies specified in Section 7108.5 of the California Business Professions Code. This requirement shall not be construed to limit or impair any contractual, administrative or judicial remedies otherwise available to the prime contractor or subcontractor in the event of a dispute involving (a) late payment or nonpayment by the prime contractor, (b ) deficient subcontractor performance, or (c) noncompliance by a subcontractor with the contract, including but not limited to remedies under California Public Contract Code Section 9204. This clause applies to both DBE and non-DBE subcontractors.

4. TIME IS OF THE ESSENCE:

Contractor and the City agree that time is of the essence regarding the performance of this Agreement.

It is agreed by the parties to this Agree ment that if all the work called for under the Agreement is not completed before or upon the expiration of the time limit as set forth in Paragraph 1 above, damage will be sustained by th e City, and it is and will be impracticable to 







 






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determine the actual damage which the City will sustain in the event of and by reason of such delay. It is therefore agreed that Contractor will pay the City the sum of Five Hundred DOLLARS ($500.00) per day as liquidated damag es for each and every day's delay beyond the time prescribed to complete the work; and Contract or agrees to pay such liquidated damages as herein provided, and in case the same are not paid, agrees that the City may deduct the amount thereof from any money due or that may become due Contractor under the Agreement.

It is further agreed that in case the work called for under the Agreement is not finished and completed in all parts and requirements with in the time specified, the City shall have the right to extend the time for completion or not, as may seem best to serve the interest of the City; and if the City decides to extend the time limit for the completion of the Agreement, it shall further have the right to charge Contractor, its successors, heirs, assigns or sureties, and to deduct from the final payment for the work, all or any part, as it may deem proper, of the actual costs and overhead expenses which are directly chargeable to the Agreement, and which accrue during the period of such extensions.

Contractor shall not be assessed with liquidated damages during any delay in the completion of the work caused by an act of God or of the public enemy, acts of the City, fire, flood, epidemic, quarantine restriction, strikes, freight embargoes, and unusually severe weather or delays of subcontractors due to such causes; provided that Contractor shall, within one (1) day from the beginning of such delay, notify the City in writing of the causes of delay. The City shall ascertain the facts in good faith and the extent of the delay, and its findings of the facts thereon shall be final and conclusive.

5. STANDARD OF CARE:

Contractor shall perform all services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents that it is skilled in the professional calling necessary to perform all se rvices contracted for in this Agreement.

Contractor further represents that all of its employees and subcontractors shall have sufficient skill and experience to perform the duties assigned to them pursuant to and in furtherance this Agreement. Contractor further represents that it (and its employees and subcontractors) have all licenses, permits, qualifications, and approvals of whatever nature that are legally required to perform the services (including a City Business License, as needed); and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Contractor shall perform (at its own cost and expense and without reimbursement from the City) any services necessary to correct errors or omissions which are caused by Contractor’s failure to comply with the standard of care provided for herein. Any employee of the Contractor or its subcontractors who is determined by the City to be uncooperative, incompetent, a threat to th e adequate or timely completion of any services under this Agreement, or a threat to the safety of persons or property (or any employee who fails or refuses to perform the services in a manner accep table to the City) shall be promptly removed by the Contractor and shall not be re-employed to perform any further services under this Agreement.








 






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6. INDEPENDENT PARTIES:

Contractor hereby declares that it is engaged as an independent business and it agrees to perform its services as an independent contra ctor. The manner and means of conducting the work are under the control of Contractor, except to the extent they are limited by statute, rule or regulation and the express terms of this Agreement. No civil service status or other right of employment will be acquired by virtue of Contract or's services and work. None of the benefits provided by the City to its employees, including but not limited to unemployment insurance, workers' compensation plans, vacation and sick le ave are available from the City to Contractor, its employees, subcontractors, suppliers or agents. Deductions shall not be made for any state or federal taxes, FICA payments, PERS payments, or other purposes normally associated with an employer-employee relationship from any fees due Cont ractor. Payments of the above items, if required, are the responsibility of Contractor. Any personnel performing the services under this Agreement on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor’s exclusive direction and control.

7. IMMIGRATION REFORM AND CONTROL ACT (IRCA):

Contractor assumes any and all responsibilit y for verifying the identity and employment authorization of all of its employees performing work hereunder, pursuant to all applicable IRCA or other federal, or state rules and regulations. Contractor shall indemnify, defend (with counsel acceptable to the City) and hold the City harmless from and against any loss, damage, liability, costs or expenses arising from any noncompliance of this provision by Contractor.

8. NON-DISCRIMINATION:

Consistent with the City ’s policy and state and federal law that harassment and discrimination are unacceptable employer/employee conduct, neither Contractor nor Contractor’s employees, agents, subcontractors or suppliers sh all harass or discriminate against any job applicant, City employee, or any person on the ba sis of any kind of any statutorily (federal, state or local) protected class, including but not limite d to race, religious creed, color, national origin, ancestry, disability (both mental and physical), including HIV and AIDS, medical condition (e.g.. cancer), genetic information, marital st atus, sex, gender, gender identity, gender expression, age, sexual orientation, pregnancy, political affiliation, military and veteran status or legitimate union activities. Such non-discriminati on shall include but not be limited to all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination. Contractor ag rees that any violations of this provision shall constitute a material breach of this Agreement.

9. HOLD HARMLESS:

To the fullest extent permitted by law, Contractor shall indemnify, defend (with counsel acceptable to the City) and hold harmless the City, its City Council, boards, commissions, officials, employees, agents and volunteers (“Indemnitees”) from and against any and all loss, damages, liability, obligations, claims, suits, judgments, costs and expenses whatsoever, including reasonable attorney ’s fees and costs of litigation (“Claims”), arising from or in any manner connected to Contractor’s performance of its obligations under this Agreement or out of the operations conducted by Contractor even if the City is found to have been negligent. If the Claims filed against Indemnitees allege neglig ence, recklessness or willful misconduct on the 







 






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part of Contractor, Contractor shall have no right of reimbursement against Indemnitees for the costs of defense even if negligence, recklessness or willful misconduct is not found on the part of Contractor. Contractor shall not have any obligations to indemnify Indemnitees if the loss or damage is found to have resulted solely from the negligence or the willful misconduct of the City. The defense and indemnification obligations of this Agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained in this Agreement.

As to Claims for professional liability only, Contractor’s obligation to defend Indemnitees (as set forth above) is limited as provided in California Civil Code Section 2782.8.

Contractor’s obligation to indemnify, defend and hold harmless Indemnitees shall expressly survive the expiration or early termination of this Agreement.

10. INSURANCE:
a. On or before the commencement of the te rms of this Agreement, Contractor shall furnish City ’s Risk Manager with certificates showing the type, amount, class of operations covered, effective dates and dates of expirati on of insurance coverage in compliance with paragraphs 10.b. (1) through (5). Such certificates, which do not limit Contractor's indemnification, shall also contain substantially the following statement:
“Should any of the above insurance covered by this certificate be canceled or coverage reduced before the expiration date thereof, the insurer affording coverage shall provide thirty (30) days advance written notice to the City of Alameda, Attention: Risk Manager.”
Contractor shall maintain in force at all times during the performance of this Agreement all appropriate coverage of insurance required by this Agreement with an insurance company licensed to offer insurance business in the State of California with a current A.M. Best’s rating of no less than A:VII or Standard & Poor’s Rating (if rated) of at least BBB unless otherwise acceptable to the City. Endorsements naming the City, its City Council, boards, commissions, officials, employees, agents and volunteers as additional insured shall be submitted with the insurance certificates.
b. COVERAGE:

Contractor shall maintain insurance coverage and limits at least as broad as:
(1) Workers ’ Compensation:

Statutory coverage as required by the State of California. (2) Liability:

Commercial general liability coverage in the following minimum limits:

Bodily Injury: $1,000,000 each occurrence
$2,000,000 aggregate - all other

Property Damage: $1,000,000 each occurrence
$2,000,000 aggregate








 






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If submitted, combined single limit policy with per occurrence limits in the amounts of $2,000,000 and aggregate limits in the amounts of $4,000,000 will be considered equivalent to the re quired minimum limits shown above.

Additional Insured Endorsement naming the City, its City Council, boards, commissions, officials, employees, agents, and volunteers is required. (3) Automotive:

Comprehensive automobile liability c overage (any auto) in the following minimum limits:

Bodily injury: $1,000,000 each occurrence
Property Damage: $1,000,000 each occurrence
or
Combined Single Limit: $2,000,000 each occurrence
Additional Insured Endorsement naming the City, its City Council, boards, commissions, officials, employees, agents, and volunteers is required. (4) Pollution Prevention:

Legal liability required for hazardous materials excavation in the amount of $2,000,000 each occurrence. Additional Insured Endorsement naming the City, its City Council, boards, commis sions, officials, employees, agents, and volunteers is required.
(5) Builders Risk:

Insurance utilizing an “All Risk” (Special Peri ls) coverage form, with limits equal to the completed value of the project and no coinsuran ce penalty provisions. The coverage and limits shall be (1) the minimum coverage and limits sp ecified in this Agreement; or (2) the broader coverage and maximum limits of the coverage carried by or available to the Contractor; whichever is greater. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits, which are applicable to a given loss, shall be available to the City.
c. SUBROGATION WAIVER:

Contractor hereby agrees to waive rights of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect th is waiver of subrogation, but this provision applies regardless of whether the City has recei ved a waiver of subrogation endorsement from the insurer. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor, its employees, agents and subcontractors.
d. FAILURE TO SECURE:

If Contractor at any time during the term hereof should fail to secure or maintain the foregoing insurance, the City shall be permitted to obtain such insurance in Contractor's name or 







 






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as an agent of Contractor and shall be compensa ted by Contractor for the costs of the insurance premiums at the maximum rate permitted by law and computed from the date written notice is received that the premiums have not been paid.
e. ADDITIONAL INSURED:

The City, its City Council, boards, commis sions, officials, employees and volunteers shall be named as an additional insured under all insurance coverages, except worker’s compensation insurance. The naming of an addi tional insured shall not affect any recovery to which such additional insured would be entitled under this policy if not named as such additional insured. An additional insured named herein shall not be held liable for any premium, deductible portion of any loss, or expense of any nature on this policy or any extension thereof. Any other insurance held by an additional insured shall not be required to contribute anything toward any loss or expense covered by the insurance provi ded by this policy. The additional insured coverage under the Contractor’s policy shall be primary and non -contributory and will not seek contribution from the City’s insurance or self-insurance. f. SUFFICIENCY OF INSURANCE:

The insurance limits required by the City are not represented as being sufficient to protect Contractor. Contractor is advised to consult C ontractor's insurance broker to determine adequate coverage for Contractor.
g. EXCESS OR UMBRELLA LIABILITY:

If any Excess or Umbrella Liability policies are used to meet the limits of liability required by this Agreement, then said policies sh all be true “following form” of the underlying policy coverage, terms, conditi ons, and provisions and shall meet all of the insurance requirements stated in this Agreement, including but not limited to, the additional insured, SIR, and primary insurance requirements stated therein. No insurance policies maintained by the indemnified parties or Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until all the primary and excess liability policies carried by or avai lable to the Contractor are exhausted. If a Provider is using an Excess Liability poli cy to supplement any insurance coverage required by this Agreement, they must submit the Excess Liability policy in full.

11. BONDS:

Contractor shall furnish the following bonds from a bonding company acceptable to the City’s Risk Manager:

A. Faithful Performance: A bond in the amount of 100% of the total contract price guaranteeing the faithful performance of this contract, and B. Labor and Materials: A bond for labor and materials in the amount of 100% of the total contract price.

Faithful Performance Bond and Labor and Material Bond are only required for work over $25,000. Therefore, those estimates that are under $25,000 will not need to budget for the bond premiums and those estimates over $25,000 will need to budget for the bond premiums. 







 






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12. PROHIBITION AGAINST TRANSFERS:

Contractor shall not assign, sublease, hypothecate, or transfer this Agreement, or any interest therein, directly or indirectly, by operation of law or otherwise, without prior written consent of the City Manager. Any attempt to do so without said consent shall be null and void, and any assignee, sublessee, hypothecate or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. However, Contractor’s claims for money from the City under this Agreement may be assigned to a bank, trust company or other financial institution without prior written consent. Written notice of such assignment shall be promptly furnished to the City by Contractor.

The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor, or of the interest of any general partner or joint venturer or syndicate member or cotenant, if Contractor is a partnership or joint venture or syndicate or cotenancy, which shall result in changing the control of Cont ractor, shall be construed as an assignment of this Agreement. Control means fifty percent (50%) or more of the voting power of the entity.

13. SUBCONTRACTOR APPROVAL:

Unless prior written consent from the City is obtained, only those people and subcontractors whose names are listed in Contractor's bid shall be used in the performance of this Agreement.

Requests for additional subcontracting shall be submitted in writing, describing the scope of work to be subcontracted a nd the name of the proposed subcontractor. Such request shall set forth the total price or hourly rates used in preparing estimated costs for the subcontractor's services. Approval of the subcontractor may, at the option of the City, be issued in the form of a Work Order.

In the event that Contractor employs subcontractors, such subcontractors shall be required to furnish proof of workers' compensation insurance and shall also be required to carry general and automobile liability insurance in r easonable conformity to the insurance carried by Contractor. In addition, any work or services subcontracted hereunder shal l be subject to each provision of this Agreement.

14. PERMITS AND LICENSES:

Contractor, at its sole expense, shall obtain and maintain during the term of this Agreement, all appropriate permits, certificates and licenses, including a City Business License that may be required in connection with the performance of services and work hereunder.

15. REPORTS:

Each and every report, draft, work product, map, record and other document reproduced, prepared or caused to be prepared by Contractor pursuant to or in connection with this Agreement shall be the exclusive property of the City.

No report, information nor other data given to or prepared or assembled by Contractor pursuant to this Agreement shall be made avai lable to any individual or organization by Contractor without prior approval by the City.








 






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Contractor shall, at such time and in such form as the City may require, furnish reports concerning the status of services and work required under this Agreement.

16. RECORDS:

Generally, the City has the right to conduct audits of Contractor’s financial, performance and compliance records maintained in connection with Contractor’s operations and services performed under the Agreement. In the event of such audit, Contractor agrees to provide the City with reasonable access to Contractor’s employees and make all such financial (including annual financial statements signed by an independent CPA), performance and compliance records available to the City. City agrees to provide Contractor an opportunity to discuss and respond to any findings before a final audit report is filed.

Contractor shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by the City that relate to the performance of services and work under this Agreement.

Contractor shall maintain adequate records of services and work provided in sufficient detail to permit an evaluation of services and work. All such records shall be maintained in accordance with generally accepted accounting prin ciples and shall be clearly identified and readily accessible. Contractor shall provide free access to such books and records to the representatives of the City or its designees, and gives the City the right to examine and audit same, and to make transcripts therefrom as necessary, and to allow inspection of all work, data, documents, proceedings and activities related to this Agreement. Such records, together with supporting documents, shall be kept separate from other documents and records and shall be maintained for a period of three (3) years after receipt of final payment.

If supplemental examination or audit of the records is necessary due to concerns raised by the City's preliminary examination or audit of records, and the City ’s supplemental examination or audit of the records discloses a failure to adhere to appropriate internal financial controls, or other breach of contract or failure to act in good faith, then Contractor shall reimburse the City for all reasonable costs and expenses associated with the supplemental examination or audit.

17. NOTICES:

All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be dee med served when delivered personally or on the second business day after the deposit thereof in the United States Mail, postage prepaid, registered or certified, addressed as hereinafter provided.

All notices, demands, requests, or approvals from Contractor to the City shall be addressed to the City at:

City of Alameda
City Manager’s Office – Housing and Human Services Division 950 West Mall Square, 2
nd Floor
Alameda, CA 94501
ATTENTION: Housing and Human Services Manager
Ph: (510) 747-6890








 






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Email: [email protected]
All notices, demands, requests, or approvals from the City to Contractor shall be addressed to Contractor at:

Mar Con Builders, Inc.

Marco Manriquez
8108A Capwell Drive
Oakland, CA 94621
Ph: (510) 639-1914
Email: [email protected]

18. SAFETY:

Contractor will be solely and completely res ponsible for conditions of all vehicles owned or operated by Contractor, including the safety of all persons and property during performance of the services and work under this Agreement. Th is requirement will apply continuously and not be limited to normal working hours. In addition, Contractor will comply with all safety provisions in conformance with U.S. Department of Labor standards, Cal/OSHA requirements Act, and all other applicable federal, state, c ounty and local laws, ordinances, codes, and any regulations that may be detailed in other parts of the Agreement. Where any of these are in conflict, the more stringent requirements will be followed. Contractor’s failure to thoroughly familiarize itself with the aforementioned safety provisions will not relieve it from compliance with the obligations and penalties set forth herein.

Contractor shall immediately notify the City’s Risk Manager within 24 hours of any incident of death, serious personal injury or substantial property damage that occurs in connection with the performance of this Agreement. Contractor will promptly submit to the City a written report of all incidents that occur in c onnection with this Agreement. This report must include the following information: (i) name and address of injured or deceased person(s); (ii) name and address of Contractor’s employee(s) involved in the incident; (iii) name and address of Contractor’s liability insurance carrier; (iv) a detailed description of the incident; and (v) a police report.

19. COMPLIANCE WITH ALL APPLICABLE LAWS:

During the term of this Agreement, Contractor shall keep fully informed of all existing and future state and federal laws and all municipal ordinances and regulations of the City of Alameda which affect the manner in which the services or tasks are to be performed by Contractor, as well as all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. Contractor shall co mply with all applicable laws, state and federal and all ordinances, rules and regulations enacted or issued by the City. Contractor shall defend, indemnify, and hold City (including its officials, directors, officers, employees, and agents) free and harmless from any claim or liability arising out of any failure or alleged failure to comply with such laws and regulations pursuant to the indemnification provisions of this Agreement. 







 






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20. HEALTH AND SAFETY REQUIREMENTS.

Contractor acknowledges that the City shall have the right to impose, at the City’s sole discretion, requirements that it deems are necessary to protect the health and safety of the City employees, residents, and visitors. Contractor agrees to comply with all such requirements, including, but not limited to, mandatory vaccinati ons, the use of personal protective equipment (e.g. masks), physical distancing, and health screenings. Contractor also agrees to make available to the City, at the City’s request, records to demonstrate Contractor’s compliance with this Section.

21. PREVAILING WAGES:

Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq. as well as California Code of Regulations, Title 8, Section 1600, et seq., (“Prevailing Wage Laws”) which require the payment of prevailing wage rates and the performance of other requirements on “ public works” and “maintenance” projects. Contractor agrees to fully comply with such Prevailing Wag e Laws if the services are being performed as part of an applicable “public works” or “maintenance” project as defined by the Prevailing Wage Laws and if the total compensation is $1,000 or more. City, upon Contractor’s request, shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification, or ty pe of worker needed to execute the services available to interested parties upon re quest; and shall post copies at the Contractor’s principal place of business and at the project site. Contractor shall defend, indemnify, and hold the City (its elected officials, officers, employees, and agents) free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

22. DEPARTMENT OF INDUSTRIAL RELATIONS COMPLIANCE AND
PREVAILING WAGE REQUIREMENTS ON PUBLIC WORKS PROJECTS:
a. For purposes of Sections 22 through 24 of this Agreement, the terms “ claim”, “contractor”, “public works project” and “subcontractor” shall have the same meanings set forth in Public Contract Code Section 9204.

b. No contractor or subcontractor may be listed on a bid proposal for a public works project, nor engage in the performance of any pu blic work contract, unless registered with the Department of Industrial Relations pursuant to Labor Code Section 1725.5 (with the limited exceptions for certain bids pursuant to Labor code Section 1771.1(a)). Registration instructions may be found at the following website: https://www.dir.ca.gov/Public-Works/Contractor- Registration.html

c. Contractor and each subcontractor shall ke ep an accurate payroll record, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. The payroll records shall be certified and shall be available for inspection at all reasonable hours at the principal office of Contractor in the manner provided in Labor Code section 1776. In the 







 






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event of noncompliance with the requirements of this section, Contractor shall have 10 days in which to comply subsequent to receipt of wr itten notice specifying in what respects such Contractor must comply with this section. S hould noncompliance still be evident after such 10- day period, Contractor shall, as a penalty to City, forfeit not more than $100.00 for each calendar day or portion thereof, for each worker, until strict compliance is effectuated. The amount of the forfeiture is to be determined by the Labor Comm issioner. A contractor who is found to have violated the provisions of law regarding wages on Public Works with the intent to defraud shall be ineligible to bid on Public Works contracts for a period of one to three years as determined by the Labor Commissioner. Upon the request of the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement, such penalties shall be withheld from progress payments then due. The responsibility for compliance with this section is on Contractor. The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4. All contractors and subcontractors must furnish electronic certified payroll records directly to the Labor Commissioner at the following website: https://www.dir.ca.gov/Public-Works/Certified-Payroll- Reporting.html

d. Contractor is required to all post job site notices as prescribed by State law. (See 8 Cal. Code Regs, Section 16451(d).)

e. The project that is governed by this Agreement is subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be the Contractor’s sole responsibility to evaluate and pay the cost of complying with all labor compliance requirements under this Contract a nd applicable law. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractor’s performance of Work, including any delay, shall be Contractor’s sole responsibility.

Any delay arising out of or resulting from such stop orders shall be considered Contractor caused delay subject to any applicable liquidated damages and shall not be compensable by the City.

Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arisi ng out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor.

f. In executing this Agreement, Contractor acknowledges and agrees that the work authorized by this Agreement may be subject to compliance monitoring and enforcement by the Department of Industrial Relations.

23. HOURS OF LABOR:

As provided in Article 3 (commencing at section 1810), Chapter 1, Part 7, Division 2 of the Labor Code, eight (8) hours of labor shall constitute a legal day's work. The time of service of any worker employed at any time by Contract or or by any subcontractor on any subcontract under this Agreement, upon the work or upon any part of the work contemplated by this Agreement, is limited and restricted to eight (8) hours during any one calendar day and forty (40) hours during any one calendar week, except as hereinafter provided. Notwithstanding the provision hereinabove set forth, work performed by employees of Contractor in excess of eight (8) hours per day and forty (40) hours during any one week shall be permitted upon this public 







 






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work, provided that the employees’ compensation for all hours worked in excess of eight (8) hours per day at not less than one and one-half (1-1/2) times the basic rate of pay.

Contractor shall pay the City a penalty of Twenty-five Dollars ($25.00) for each worker employed in the execution of this Agreement by Contractor, or by any subcontractor, for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any calendar day and forty (40) hours in any one (1) calendar week, in violation of the provisions of Article 3 (commencing at section 18 10), Chapter 1, Part 7, Division 2 of the Labor Code, unless compensation for the workers so employed by Contractor is not less than one and one-half (1-1/2) times the basic rate of pay for all hours worked in excess of eight (8) hours per day.

Holiday and overtime work, when permitted by law, shall be paid for at a rate of at least one and one-half (1½) times the above specified rate of per diem wages, unless otherwise specified. Holidays shall be defined in the Co llective Bargaining Contract applicable to each particular craft, classification, or type of worker employed.

24. APPRENTICES:

Attention is directed to the provisions in Sections 1777.5 and 1777.6 of the Labor Code concerning the employment of apprentices by Contractor or any subcontractor under it on contracts greater than $30,000 or 20 working days . Contractor and any subcontractor under it shall comply with the requirements of Sections 1777.5 and 1777.6 in the employment of apprentices.

Section 1777.5 of the Labor Code requires Contractor or subcontractor employing workers in any apprenticeable occupation to appl y to the joint apprenticeship committee nearest the site of the public works project, and which administers the apprenticeship program in that trade, for a certificate of approval, if they have not previously applied and are covered by the local apprenticeship standards.

Contractor is required to make contributions to funds established for the administration of apprenticeship programs if: (1) Contractor employs registered apprentices or journeymen in any apprenticeable trade on such contracts and if other contractors on the public works site are making such contributions; or (2) if Contractor is not a signatory to an apprenticeship fund and if the funds administrator is unable to accept Contractor' required contribution. Contractor or subcontractor shall pay a like amount to the California Apprenticeship Council.

Information relative to apprenticeship standards, wage schedules, and other requirements may be obtained from the Director of Industrial Relations, ex-officio the Administrator of Apprenticeship, San Francisco, California, or from the Division of Apprenticeship Standards and its branch offices.

25. LABOR DISCRIMINATION:

No discrimination shall be made in the employment of persons upon public works because of the race, color, sex, religion, age, national origin, sexual orientation or physical disability of such persons and every Contractor for public works violating this section is subject 







 






Mar Con Builders Inc. 14 Version 8-04-25

to all the penalties imposed for a violation of the provisions of the Labor Code, and, in particular, Section 1735.

26. REGISTRATION OF CONTRACTORS:

Before submitting bids for any work authorized by this Agreement, contractors shall be licensed in accordance with the provisions of Ch apter 9, Division 3, of the Business and Professions Code of the State of California. Pu rsuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations.

No bid will be accepted nor any contract entered into without proof of the contractor’s and subcontractors’ current registration with the Department of Industrial Relations to perform public work. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small pro ject exemption specified in Labor Code Sections 1725.5 and 1771.1.

27. URBAN RUNOFF MANAGEMENT:

Contractor shall avoid creating excess dust when breaking asphalt or concrete and during excavation and grading. If water is used for du st control, Contractor shall use as little as necessary. Contractor shall take all steps necessary to keep wash water out of the streets, gutters and storm drains.

Contractor shall develop and implement er osion and sediment control to prevent pollution of storm drains. Such control includes but is not limited to:
a. Use storm drain inlet protection devices such as sand bag barriers, filter fabric fences, block and gravel filters. (Block storm drain inlets prior to the start of the rainy season (October 15), on site de-watering activities and saw-cutting activities; shovel or vacuum saw-cut slurry and remove from the site.) b. Cover exposed piles of soil or construc tion material with plastic sheeting. All construction materials must be stored in containers.
c. Sweep and remove all materials from paved surfaces that drain to streets, gutters and storm drains prior to rain as well as at the end of the each work day. At the completion of the project, the street shall be washed and the wash water shall be collected and disposed of offsite in an appropriate location. d. After breaking old pavement, Contractor sh all remove all debris to avoid contact with rainfall or runoff.
e. Contractor shall maintain a clean work area by removing trash, litter, and debris at the end of each workday. Contractor shal l also clean up any leaks, drips, and other spills as they occur.

The objective is to ensure that the City and County of Alameda County-Wide Clean Water Program is adequately enforced. These cont rols should be implemented prior to the start 







 






Mar Con Builders Inc. 15 Version 8-04-25

of construction, up-graded as required, mainta ined during construction phases to provide adequate protection, and removed at the end of construction.

These recommendations are intended to be used in conjunction with the State’s Best Management Practices Municipal and Construction Handbooks, local program guidance materials from municipalities, Section 7.1.01 of the Standard Specifications and any other appropriate documents on storm water quality controls for construction.

Failure to comply with this program will re sult in the issuance of noncompliance notices, citations, project stop orders or fines. The fine for noncompliance of the above program is two hundred and fifty dollars ($250.00) per occurrence per day. The State under the Federal Clean Water Act can also impose a fine on the contractor, pursuant to Cal. Water Code Section 13385.

28. COMPLIANCE WITH MARSH CRUST ORDINANCE:

Contractor shall perform all excavation work in compliance with the City’s Marsh Crust Ordinance as set forth at Section 13-56 of the Municipal Code. Prior to performing any excavation work, Contractor shall verify with the Building Official whether the excavation work is subject to the Marsh Crust Ordinance. Contractor shall apply for and obtain permits from Building Services on projects deemed to be subject to the Marsh Crust Ordinance.

29. COMP LIANCE WITH THE CITY’S INTEGRATED PEST MANAGEMENT POLICY:

Contractor shall follow the requirements of the City's Integrated Pest Management (IPM) Policy to ensure the City is in compliance with its Municipal Regional Stormwater NPDES Permit, Order R2-2022-0018, issued by the San Francisco Bay Regional Water Quality Control Board.
‰ Contractor shall use the most current IPM technologies available to ensure the long-term prevention or suppression of pest problems and to minimize negative impacts on the environment, non-target organisms, and human health for the control or management of pests in and around City buildings and facili ties, parks and golf courses, urban landscape areas, rights-of-way, and other City properties.
‰ Contractor will consider the City IPM Policy’s hierarchy of options or alternatives listed below, in the following order before recomm ending the use of or applying any pesticide on City property: (1)
a. No controls (e.g. tolerating the pest infestation, use of resistant plant varieties or allowing normal life cycle of weeds);
b. Physical or mechanical controls (e.g. hand labor, mowing, exclusion); c. Cultural controls (e.g. mulching, disking, alternative vegetation) and good housekeeping (e.g. cleaning desk area);
d. Biological controls (e.g., natural enemies or predators); e. Reduced-risk chemical controls (e.g., soaps or oils); and 







 






Mar Con Builders Inc. 16 Version 8-04-25

f. Other chemical controls.
‰ Prior to applying chemical controls C ontractor shall complete a checklist for the City’s pre-approval that explains why a chemical control is necessary. For annual contracts that require regular application of chemical controls the contractor shall submit one checklist prior to the initiation of the project demonstrating that the hierarchy has been reviewed and no other options exist. (See Exhibit C). Additionally, Contractor shall provide documentation to the City’s project manager of the implementation of the IPM techniques hierarchy described in the City’s IPM Policy. ‰ Contractor shall avoid the use of the follow ing pesticides that threaten water quality, human health and the environment:
a. Acute Toxicity Category I chemicals as identified by the Environmental Protection Agency (EPA);
b. Organophosphate pesticides (e.g., those c ontaining Diazinon, chlorpyrifos or malathion);
c. Diamides (chlorantraniliprole and cyantraniliprole); d. Neonicotinoids (e.g., imidacloprid, acetamiprid, and dinotefuran); e. Pyrethroids (bifenthrin, cyfluthrin, beta-cyfluthrin, cypermethrin, deltamethrin, esfenvalerate, lambda-cyhalothrin, metofluthrin, permethrin, and tralomethrin), carbamates (e.g., carbaryl and aldicarb), di uron, fipronil and its degradates, and indoxacarb; and
f. Copper-based pesticides unless their use is judicious, other approaches and techniques have been considered, and the th reat of impact to water quality is prevented.
‰ Contractor shall sign the Contractor Verification Form (attached as Exhibit B) indicating the intent to implement the City’s IPM Policy, and return a signed copy to the City’s project manager.
‰ Contractor shall provide to the City’s project manager an annual report of all pesticide usage in support of City operations including pesticide name, active ingredient(s), target pest(s), the total amounts used and the reasons for any increase in use of any pesticide. ‰ Contractor shall provide a copy of any current IPM certifications(s) to the City’s project manager prior to initiation of the service work.

A copy of the City's IPM Policy may be obtained from the City’s project manager and is also on file with the City Clerk.

If this Agreement pertains to the use of any items listed above, Contractor will need to fill out and send in the Contractor Verification Form and Contractor Check List. ADD EXHIBIT B IF PEST CONTROL.








 






Mar Con Builders Inc. 17 Version 8-04-25

30. PURCHASES OF MINED MATERIALS REQUIREMENT:

Contractor shall ensure that all purchases of mined materials such as construction aggregate, sand and gravel, crushed stone, road base, fill materials, and any other mineral materials must originate from a surface mining operation identified on the AB3098 List per the Surface Mining and Reclamation Act of 1975 (SMARA).

Within five days of award of contract, Contractor shall submit a report to the City which lists the intended suppliers for the above materials and demonstra tes that the suppliers are in compliance with the SMARA requirements. The AB3098 List is maintained by the Department of Conservation’s Office of Mine R eclamation (OMR) and can be viewed at:
www.conservation.ca.gov/OMR/ab_3098_list/index.htm. Note that the list changes periodically and should be reviewed accordingly.

31. CALIFORNIA AIR RESOURCES BOARD COMPLIANCE:

Contractor, shall comply, and shall ensure all subcontractors comply, with all applicable requirements of the most current version of the California Air Resources Board regulations including, without limitation, Title 13, California Code of Regulations Division 3, Chapter 9 and all pending amendments (“CARB Regulations”).

Throughout the Project, and for three (3) years thereafter, Contractor shall make available for inspection and copying any and all documents or information associated with Contractor’s and subcontractors’ fleet including, without limitation, Certificates of Reported Compliance, fuel/refueling records, maintenance records, emissions records, and any other information the Contractor is required to produce, keep or maintain pursuant to the CARB Regulations upon two (2) calendar days’ notice from the City.

Contractor shall be solely liable for any and all costs associated with complying with the CARB Regulations as well as for any and all pena lties, fines, damages, or costs associated with any and all violations, or failures to comply with the CARB Regulations. Contractor shall defend, indemnify and hold harmless the City, its officials, officers, employees and authorized volunteers free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the CARB Regulations.

32. TERMINATION:

In the event Contractor fails or refuses to perform any of the provisions hereof at the time and in the manner required hereunder, Contractor sh all be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) business days after receipt by Contractor from the City of written notice of default, specifying the nature of such default and the steps necessary to cure such default, the City may terminate the Agreement forthwith by giving to Contractor written notice thereof.

The City shall have the option, at its sole discretion and without cause, of terminating this Agreement by giving seven (7) days’ prior written notice to Contractor as provided herein. Upon termination of this Agreement, each party shall pay to the other party that portion of compensation specified in this Agreement that is earned and unpaid prior to the effective date of termination.








 






Mar Con Builders Inc. 18 Version 8-04-25

33. ATTORNEYS ’ FEES AND COSTS:

In the event of any litigation, including administrative proceedings, relating to this Agreement, including but not limited to any action or suit by any party, assignee or beneficiary against any other party, beneficiary or assignee, to enforce, interpret or seek relief from any provision or obligation arising out of this Agreement, the parties and litigants shall bear their own attorney’s fees and costs. No party or litigant shall be entitled to recover any attorneys’ fees or costs from any other party or litigant, regardless of which party or litigant might prevail.

34. PUBLIC CONTRACT CODE SECTION 9204 SUMMARY:

Notwithstanding anything else to the contrary stated in the Information For Bidders (IFB) or other documents associated with this Agre ement, all claims, regardless of dollar amount, submitted between January 1, 2017 and January 1, 2027 related to work performed or scheduled to be performed pursuant to this Agreement sh all be governed by Public Contract Code Section 9204 and this section. The following provisions and procedures shall apply:
a. Contractor shall submit each Claim (whether for a time extension, payment for money or damages) in writing and in compliance with Public Contract Code Section 9204. Contractor must include reasonable documentation to support each claim.

b. Upon receipt of a claim, the City shall conduct a reasonable review and respond in writing within 45 days of receipt and shall identify in a written statement what portions of the claim are disputed and undisputed. Undisputed portions of the claim shall be process and paid within 60 days of th e written statement. Undisputed amounts not paid in a timely manner shall bear interest at 7% per annum. The City and Contractor may mutually agree to extend the 45 day response time.

c. If the City needs approval from the City Council to provide a written statement, the 45 days may be extended to 3 days following the next duly noticed public meeting pursuant to Public Contract Code Section 9204(d)(1)(C).

d. If the City fails to timely respond to a claim or if Contractor disputes the City’s response, Contractor may submit a written demand for an informal meet and confer conference with the City to settle the is sues in dispute. The demand must be sent via registered or certified mail, return recei pt requested. Upon receipt, the City shall schedule the conference within 30 days.

e. Within 10 business days following the informal meet and confer conference, the City shall submit to Contract or a written statement describing any issues remaining in dispute and that portion which is undisputed. Undisputed portions of the claim shall be processed and paid within 60 da ys of the written statement. Undisputed amounts not paid in a timely manner shall bear interest at 7% per annum. The issues remaining in dispute shall be submitted to non-binding mediation. If the City and Contractor mutually agree on a mediator, each party shall pay equal portions of all associated costs. If within 10 business days , the City and Contractor cannot agree on a mediator, each party shall select a mediator (paying all costs associated with their selected mediator), and those mediators shall select a qualified neutral third party to 







 






Mar Con Builders Inc. 19 Version 8-04-25

mediate the disputed issues. The City and Contractor shall pay equal portions of all associated costs of such third party mediator.

f. Unless otherwise agreed by the City and Contractor, any mediation conducted hereunder shall excuse any furthe r obligation under Public Contract Code Section 20104.4 to mediate after litigation has commenced.

g. The City reserves all rights and remedies that it has pursuant to this Agreement, any associated plans and specifications, or at law or in equity which are not in conflict with Public Contract Code 9204.

35. CONFLICT OF LAW:

This Agreement shall be interpreted under, and enforced by the laws of the State of California excepting any choice of law rules which may direct the application of laws of another jurisdiction. The Agreement and obligations of th e parties are subject to all valid laws, orders, rules, and regulations of the authorities having jurisdiction over this Agreement (or the successors of those authorities.) Any suits brought pursuant to this Agreement shall be filed with the courts of the County of Alameda, State of California.

36. ADVERTISEMENT:

Contractor shall not post, exhibit, display or allow to be posted, exhibited, displayed any signs, advertising, show bills, lithographs, posters or cards of any kind pertaining to the services performed under this Agreement unless prior written approval has been secured from the City to do otherwise.

37. WAIVER:

A waiver by the City of any breach of any term, covenant, or condition contained herein, shall not be deemed to be a waiver of any s ubsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character.

38. INTEGRATED CONTRACT:

Subject to the language of Section 43, the Recitals and exhibits are a material part of this Agreement and are expressly inco rporated herein. This Agreement represents the full and complete understanding of every kind or nature wh atsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied c ovenant shall be held to vary the provisions hereof. Any modification of this Agreement will be effect ive only by written execution signed by both the City and Contractor.

39. INSERTED PROVISIONS:

Each provision and clause required by law to be inserted into the Agreement shall be deemed to be enacted herein, and the Agreement shall be read and enforced as though each were included herein. If through mistake or otherwise, any such provision is not inserted or is not correctly inserted, the Agreement shall be amended to make such insertion on application by either party.








 






Mar Con Builders Inc. 20 Version 8-04-25

40. CAPTIONS:

The captions in this Agreement are for conven ience only, are not a part of the Agreement and in no way affect, limit or amplify the terms or provisions of this Agreement.

41. COUNTERPARTS:

This Agreement may be executed in any numbe r of counterparts (including by fax, PDF, DocuSign, or other electronic means), each of which shall be deemed an original, but all of which shall constitute one and the same instrument.

42. SIGNATORY:

By signing this Agreement, each signatory wa rrants and represents that he/she executed this Agreement in his/her authorized capacity and that by his/her signature on this Agreement, he/she or the entity upon behalf of which he/she acted, executed this Agreement.

43. CONTROLLING AGREEMENT:

In the event of a conflict between the terms and conditions of this Agreement (as amended, supplemented, restated or otherwise m odified from time to time) and any other terms and conditions wherever contained, including, wi thout limitation, terms and conditions included within exhibits, the terms and conditions of this Agreement shall control and be primary.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]









 






IN WITNESS WHEREOF, the parties have caused the Agreement to be executed on the day and year first above written.

MAR CON BUILDERS INC. CITY OF ALAMEDA,
a California corporation a municipal corporation

Marco Manriquez
President/CEO Interim City Manager

RECOMMENDED FOR APPROVAL

Deepali Pallath Amy Wooldridge
COO Assistant City Manager

Contractor License No. 829636 APPROVED AS TO FORM:

City Attorney
DIR No. 1000049865

Len Aslanian
Assistant City Attorney









 












 


 

ANY PROPRIETOR/PARTNER/EXECUTIVEOFFICER/MEMBER EXCLUDED?

INSR ADDLSUBRLTR INSDWVD
PRODUCER CONTACTNAME: FAXPHONE(A/C, No):(A/C, No, Ext):E-MAILADDRESS:INSURER A :INSURED INSURER B :INSURER C :INSURER D :INSURER E :INSURER F :

POLICY NUMBERPOLICY EFFPOLICY EXPTYPE OF INSURANCELIMITS(MM/DD/YYYY)(MM/DD/YYYY)

AUTOMOBILE LIABILITY

UMBRELLA LIABEXCESS LIABWORKERS COMPENSATIONAND EMPLOYERS' LIABILITY DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

AUTHORIZED REPRESENTATIVE
EACH OCCURRENCE$DAMAGE TO RENTEDCLAIMS-MADEOCCUR $PREMISES (Ea occurrence)MED EXP (Any one person)$PERSONAL & ADV INJURY$GEN'L AGGREGATE LIMIT APPLIES PER:GENERAL AGGREGATE$PRO-POLICYLOC PRODUCTS - COMP/OP AGGJECT OTHER: $COMBINED SINGLE LIMIT$(Ea accident)ANY AUTO BODILY INJURY (Per person)$OWNEDSCHEDULEDBODILY INJURY (Per accident)$AUTOS ONLYAUTOSHIREDNON-OWNEDPROPERTY DAMAGE$AUTOS ONLYAUTOS ONLY(Per accident)$OCCUR EACH OCCURRENCECLAIMS-MADEAGGREGATE$DEDRETENTION$ PEROTH-STATUTEERE.L. EACH ACCIDENTE.L. DISEASE - EA EMPLOYEE$If yes, describe underE.L. DISEASE - POLICY LIMITDESCRIPTION OF OPERATIONS below INSURER(S) AFFORDING COVERAGENAIC #

COMMERCIAL GENERAL LIABILITY
Y / NN / A(Mandatory in NH)
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORETHE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED INACCORDANCE WITH THE POLICY PROVISIONS.

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIODINDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THISCERTIFICATE 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.

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THISCERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIESBELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZEDREPRESENTATIVE 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 onthis certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

COVERAGESCERTIFICATE NUMBER:REVISION NUMBER:

CERTIFICATE HOLDERCANCELLATION
© 1988-2015 ACORD CORPORATION. All rights reserved.ACORD 25 (2016/03)

CERTIFICATE OF LIABILITY INSURANCEDATE (MM/DD/YYYY)
$
$$$$
The ACORD name and logo are registered marks of ACORD
11/20/2025
(408) 352-670019682MAR CON Builders, Inc. DBA MAR CON Company8108A Capwell DriveOakland, CA 946212235711000 A 1,000,000X57UEABS9FJN7/1/20257/1/2026100,00015,0001,000,0002,000,0002,000,0001,000,000B X57UEABF4308S57/1/20257/1/2026 C X57WEABS9FHZ7/1/20257/1/20261,000,0001,000,0001,000,000 RE: Project #E892, Alameda Day Center RelocationCity of Alameda, its City Council, boards, commissions, officials, employees, agents and volunteers are included as Additional Insured as respects Liability arising out of operations (work) performed by or on behalf of the Named Insured in accordance with the policy provisions of the General Liability and Automobile Liability policies. The General Liability evidenced herein is Primary and Non-Contributory to other insurance available to the Additional Insured, but only in accordance with the policy provisions. Waiver of Subrogation applies as required by contract in accordance with the policy provisions of the Workers’ Compensation policy. Cancellation notice will be delivered to the certificate holder in accordance with the policy provisions.

City of AlamedaCity Manager's Office - Housing and Human Services Division950 West Mall Square, 2nd FloorAlameda, CA 94501 MARCON0003MAXU
Alliant Insurance Services, Inc.10 Almaden Boulevard, Suite 650San Jose, CA 95113Certificate [email protected] Fire Insurance CompanyHartford Accident and Indemnity CompanySentinel Insurance Company Ltd X
X XXX
HG 00 01 09 16 Page 1 of 21
© 2016 The Hartford
(Includes copyrighted material of Insurance Services Office, Inc. with its permission.)

COMMERCIAL GENERAL LIABILITY 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, and any other person or organization
qualifying as a Named Insured under this policy. The
words "we", "us" and "our" refer to the stock
insurance company member of The Hartford
providing this insurance.

The word "insured" means any person or
organization qualifying as such under Section II –
Who Is An Insured.

Other words and phrases that appear in quotation
marks have special meaning. Refer to Section V –
Definitions.

SECTION I – COVERAGES

COVERAGE A BODILY INJURY AND PROPERTY

DAMAGE LIABILITY

1. Insuring Agreement
a. We will pay those sums that the insured
becomes legally obligated to pay as damages
because of "bodily injury" or "property
damage" to which this insurance applies. We
will have the right and duty to defend the
insured against any "suit" seeking those
damages. However, we will have no duty to
defend the insured against any "suit" seeking
damages for "bodily injury" or "property
damage" to which this insurance does not
apply. We may, at our discretion, investigate
any "occurrence" and settle any claim or "suit"
that may result. But:
(1) The amount we will pay for damages is
limited as described in Section III – Limits
Of Insurance; and
(2) Our right and duty to defend ends when
we have used up the applicable limit of
insurance in the payment of judgments or
settlements under Coverages A or B or
medical expenses under Coverage C.

No other obligation or liability to pay sums or
perform acts or services is covered unless
explicitly provided for under Supplementary
Payments – CoveragesA and B.
b. This insurance applies to "bodily injury" and
"property damage" only if:
(1) The "bodily injury" or "property damage" is
caused by an "occurrence" that takes
place in the "coverage territory";
(2) The "bodily injury" or "property damage"
occurs during the policy period; and
(3) Prior to the policy period, no insured listed
under Paragraph 1. of Section II – Who Is
An Insured and no "employee" authorized
by you to give or receive notice of an
"occurrence" or claim, knew that the
"bodily injury" or "property damage" had
occurred, in whole or in part. If such a
listed insured or authorized "employee"
knew, prior to the policy period, that the
"bodily injury" or "property damage"
occurred, then any continuation, change
or resumption of such "bodily injury" or
"property damage" during or after the
policy period will be deemed to have been
known prior to the policy period.
c. "Bodily injury" or "property damage" will be
deemed to have been known to have
occurred at the earliest time when any
insured listed under Paragraph 1. of Section II
– Who Is An Insured or any "employee"
authorized by you to give or receive notice of
an "occurrence" or claim:
(1) Reports all, or any part, of the "bodily
injury" or "property damage" to us or any
other insurer;
(2) Receives a written or verbal demand or
claim for damages because of the "bodily
injury" or "property damage"; or
(3) Becomes aware by any other means that
"bodily injury" or "property damage" has
occurred or has begun to occur.
d. Damages because of "bodily injury" include
damages claimed by any person or
organization for care, loss of services or
death resulting at any time from the "bodily
injury".
e. Incidental Medical Malpractice And Good
Samaritan Coverage
"Bodily injury" arising out of the rendering of
or failure to render the following health care
services by any "employee" or "volunteer
worker" shall be deemed to be caused by an
"occurrence" for:

Policy Number: 57UEABS9FJN

with respect to duties as such. That
representative will have all your rights and
duties under this Coverage Part.
e. Unnamed Subsidiary
Any subsidiary, and subsidiary thereof, of
yours which is a legally incorporated entity of
which you own a financial interest of more
than 50% of the voting stock on the effective
date of the Coverage Part.

The insurance afforded herein for any
subsidiary not named in this Coverage Part
as a named insured does not apply to injury
or damage with respect to which such insured
is also a named insured under another policy
or would be a named insured under such
policy but for its termination or the exhaustion
of its limits of insurance.

3. Newly Acquired Or Formed Organization
Any organization you newly acquire or form,
other than a partnership, joint venture or limited
liability company, and over which you maintain
financial interest of more than 50% of the voting
stock, 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 180th day after you acquire or form
the organization or the end of the policy
period, whichever is earlier;
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.

4. Nonowned Watercraft
With respect to watercraft you do not own that is
less than 51 feet long and is not being used to
carry persons for a charge, any person is an
insured while operating such watercraft with your
permission. Any other person or organization
responsible for the conduct of such person is
also an insured, but only with respect to liability
arising out of the operation of the watercraft, and
only if no other insurance of any kind is available
to that person or organization for this liability.

However, no person or organization is an insured
with respect to:
a. "Bodily injury" to a co-"employee" of the
person operating the watercraft; or
b. "Property damage" to property owned by,
rented to, in the charge of or occupied by you
or the employer of any person who is an
insured under this provision.

5. Additional Insureds When Required By
Written Contract, Written Agreement Or
Permit
The following person(s) or organization(s) are an
additional insured when you have agreed , in a
written contract, written agreement or because of
a permit issued by a state or political subdivision,
that such person or organization be added as an
additional insured on your policy, provided the
injury or damage occurs subsequent to the
execution of the contract or agreement.

A person or organization is an additional insured
under this provision only for that period of time
required by the contract or agreement.

However, no such person or organization is an
insured under this provision if such person or
organization is included as an insured by an
endorsement issued by us and made a part of
this Coverage Part.
a. Vendors
Any person(s) or organization(s) (referred to
below as vendor), but only with respect to
"bodily injury" or "property damage" arising
out of "your products" which are distributed or
sold in the regular course of the vendor's
business and only if this Coverage Part
provides coverage for "bodily injury" or
"property damage" included within the
"products-completed operations hazard".
(1) The insurance afforded the vendor is
subject to the following additional
exclusions:

This insurance does not apply to:
(a) "Bodily injury" or "property damage" for
which the vendor is obligated to pay
damages by reason of the assumption
of liability in a contract or agreement.

This exclusion does not apply to
liability for damages that the vendor
would have in the absence of the
contract or agreement;
(b) Any express warranty unauthorized by
you;
(c) Any physical or chemical change in the
product made intentionally by the
vendor;
(d) Repackaging, except when unpacked
solely for the purpose of inspection,
demonstration, testing, or the
substitution of parts under instructions
from the manufacturer, and then
repackaged in the original container;
(e) Any failure to make such inspections,
adjustments, tests or servicing as the
vendor has agreed to make or normally

contract or written agreement that this
insurance is primary and non-contributory
with the additional insured's own insurance.
f. Knowledge Of An Occurrence, Offense,
Claim Or Suit
Paragraphs a. and b. apply to you or to any
additional insured only when such
"occurrence", offense, claim or "suit" is known
to:
(1) You or any additional insured that is an
individual;
(2) Any partner, if you or the additional
insured is a partnership;
(3) Any manager, if you or the additional
insured is a limited liability company;
(4) Any "executive officer" or insurance
manager, if you or the additional insured is
a corporation;
(5) Any trustee, if you or the additional
insured is a trust; or
(6) Any elected or appointed official, if you or
the additional insured is a political
subdivision or public entity.

This duty applies separately to you and any
additional insured.

3. Legal Action Against Us
No person or organization has a right under this
Coverage Part:
a. To join us as a party or otherwise bring us
into a "suit" asking for damages from an
insured; or
b. To sue us on this Coverage Part unless all of
its terms have been fully complied with.

A person or organization may sue us to recover
on an agreed settlement or on a final judgment
against an insured; but we will not be liable for
damages that are not payable under the terms of
this Coverage Part or
that are in excess of the applicable limit of
insurance. An agreed settlement means a
settlement and release of liability signed by us,
the insured and the claimant or the claimant's
legal representative.

4. Other Insurance
If other valid and collectible insurance is
available to the insured for a loss we cover under
Coverages A or B of this Coverage Part, our
obligations are limited as follows:
a. Primary Insurance
This insurance is primary except when b.
below applies. If other insurance is also
primary, we will share with all that other
insurance by the method described in c.
below.
b. Excess Insurance
This insurance is excess over any of the other
insurance, whether primary, excess,
contingent or on any other basis:
(1) Your Work
That is Fire, Extended Coverage, Builder's
Risk, Installation Risk or similar coverage
for "your work";
(2) Premises Rented To You
That is fire, lightning or explosion
insurance for premises rented to you or
temporarily occupied by you with
permission of the owner;
(3) Tenant Liability
That is insurance purchased by you to
cover your liability as a tenant for
"property damage" to premises rented to
you or temporarily occupied by you with
permission of the owner;
(4) Aircraft, Auto Or Watercraft
If the loss arises out of the maintenance or
use of aircraft, "autos" or watercraft to the
extent not subject to Exclusion g. of
Section I – Coverage A – Bodily Injury
And Property Damage Liability;
(5) Property Damage To Borrowed
Equipment Or Use Of Elevators
If the loss arises out of "property damage"
to borrowed equipment or the use of
elevators to the extent not subject to
Exclusion j. of Section I - Coverage A -
Bodily Injury And Property Damage
Liability;
(6) When You Are Added As An Additional
Insured To Other Insurance
Any other insurance available to you
covering liability for damages arising out
of the premises or operations, or products
and completed operations, for which you
have been added as an additional insured
by that insurance; or
(7) When You Add Others As An
Additional Insured To This Insurance
Any other insurance available to an
additional insured.

However, the following provisions apply to
other insurance available to any person or
organization who is an additional insured
under this coverage part.
(a) Primary Insurance When Required
By Contract
This insurance is primary if you have
agreed in a written contract or written
agreement that this insurance be
primary. If other insurance is also
HG 00 01 09 16 Page 17 of 21
primary, we will share with all that
other insurance by the method
described in c. below.
(b) Primary And Non-Contributory To
Other Insurance When Required By
Contract
If you have agreed in a written
contract, written agreement, or permit
that this insurance is primary and non-
contributory with the additional
insured's own insurance, this insurance
is primary and we will not seek
contribution from that other insurance.

Paragraphs (a) and (b) do not apply to
other insurance to which the additional
insured has been added as an additional
insured.

When this insurance is excess, we will have
no duty under Coverages A or B to defend
the insured against any "suit" if any other
insurer has a duty to defend the insured
against that "suit". If no other insurer defends,
we will undertake to do so, but we will be
entitled to the insured's rights against all
those other insurers.

When this insurance is excess over other
insurance, we will pay only our share of the
amount of the loss, if any, that exceeds the
sum of:
(1) The total amount that all such other
insurance would pay for the loss in the
absence of this insurance; and
(2) The total of all deductible and self-insured
amounts under all that other insurance.

We will share the remaining loss, if any, with
any other insurance that is not described in
this Excess Insurance provision and was not
bought specifically to apply in excess of the
Limits of Insurance shown in the Declarations
of this Coverage Part.
c. Method Of Sharing
If all of the other insurance permits
contribution by equal shares, we will follow
this method also. Under this approach each
insurer contributes equal amounts until it has
paid its applicable limit of insurance or none
of the loss remains, whichever comes first.

If any of the other insurance does not permit
contribution by equal shares, we will
contribute by limits. Under this method, each
insurer's share is based on the ratio of its
applicable limit of insurance to the total
applicable limits of insurance of all insurers.

5. Premium Audit
a. We will compute all premiums for this
Coverage Part in accordance with our rules
and rates.
b. Premium shown in this Coverage Part as
advance premium is a deposit premium only.

At the close of each audit period we will
compute the earned premium for that period
and send notice to the first Named Insured.

The due date for audit and retrospective
premiums is the date shown as the due date
on the bill. If the sum of the advance and
audit premiums paid for the policy period is
greater than the earned premium, we will
return the excess to the first Named Insured.
c. The first Named Insured must keep records of
the information we need for premium
computation, and send us copies at such
times as we may request.

6. Representations
a. When You Accept This Policy
By accepting this policy, you agree:
(1) The statements in the Declarations are
accurate and complete;
(2) Those statements are based upon
representations you made to us; and
(3) We have issued this policy in reliance
upon your representations.
b. Unintentional Failure To Disclose Hazards
If unintentionally you should fail to disclose all
hazards relating to the conduct of your
business that exist at the inception date of
this Coverage Part, we shall not deny
coverage under this Coverage Part because
of such failure.

7. Separation Of Insureds
Except with respect to the Limits of Insurance,
and any rights or duties specifically assigned in
this Coverage Part to the first Named Insured,
this insurance applies:
a. As if each Named Insured were the only
Named Insured; and
b. Separately to each insured against whom
claim is made or "suit" is brought.

8. Transfer Of Rights Of Recovery Against
Others To Us
a. Transfer Of Rights Of Recovery
If the insured has rights to recover all or part
of any payment, including Supplementary
Payments, we have made under this
Coverage Part, those rights are transferred to
us. The insured must do nothing after loss to

impair them. At our request, the insured will
bring "suit" or transfer those rights to us and
help us enforce them.
b. Waiver Of Rights Of Recovery (Waiver Of
Subrogation)
If the insured has waived any rights of
recovery against any person or organization
for all or part of any payment, including
Supplementary Payments, we have made
under this Coverage Part, we also waive that
right, provided the insured waived their rights
of recovery against such person or
organization in a contract, agreement or
permit that was executed prior to the injury or
damage.

9. When We Do Not Renew
If we decide not to renew this Coverage Part, we
will mail or deliver to the first Named Insured
shown in the Declarations written notice of the
nonrenewal not less than 30 days before the
expiration date.

If notice is mailed, proof of mailing will be
sufficient proof of notice.

SECTION V – DEFINITIONS

1. "Advertisement" means the widespread public
dissemination of information or images that has
the purpose of inducing the sale of goods,
products or services through:
a. (1) Radio;
(2) Television;
(3) Billboard;
(4) Magazine;
(5) Newspaper; or
b. Any other publication that is given widespread
public distribution.

However, "advertisement" does not include:
a. The design, printed material, information or
images contained in, on or upon the
packaging or labeling of any goods or
products; or
b. An interactive conversation between or
among persons through a computer network.

2. "Advertising idea" means any idea for an
"advertisement".

3. "Asbestos hazard" means an exposure or
threat of exposure to the actual or alleged
properties of asbestos and includes the mere
presence of asbestos in any form.

4. "Auto" means:
a. A land motor vehicle, trailer or semitrailer
designed for travel on public roads, including
any attached machinery or equipment; or
b. Any other land vehicle that is subject to a
compulsory or financial responsibility law or
other motor vehicle insurance law where it is
licensed or principally garaged.

However, "auto" does not include "mobile
equipment".

5. "Bodily injury" means physical:
a. Injury;
b. Sickness; or
c. Disease
sustained by a person and, if arising out of the
above, mental anguish or death at any time.

6. "Coverage territory" means:
a. The United States of America (including its
territories and possessions), Puerto Rico and
Canada;
b. International waters or airspace, but only if
the injury or damage occurs in the course of
travel or transportation between any places
included in a. above; or
c. All other parts of the world if the injury or
damage arises out of:
(1) Goods or products made or sold by you in
the territory described in a. above;
(2) The activities of a person whose home is
in the territory described in a. above, but is
away for a short time on your business; or
(3) "Personal and advertising injury" offenses
that take place through the Internet or
similar electronic means of communication
provided the insured's responsibility to pay
damages is determined in the United States of
America (including its territories and possessions),
Puerto Rico or Canada, in a "suit" on the merits
according to the substantive law in such territory or
in a settlement we agree to.

7. "Employee" includes a "leased worker".
"Employee" does not include a "temporary
worker".

8. "Employment-Related Practices" means:
a. Refusal to employ that person;
b. Termination of that person's employment; or
c. Employment-related practices, policies, acts
or omissions, such as coercion, demotion,
evaluation, reassignment, discipline,
defamation, harassment, humiliation,
discrimination or malicious prosecution
directed at that person.

9. "Executive officer" means a person holding any
of the officer positions created by your charter,
constitution, by-laws or any other similar
governing document.

10."Hostile fire" means one which becomes
uncontrollable or breaks out from where it was
intended to be.

COMMERCIAL AUTOMOBILE
HA 99 16 12 21
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

Form HA 99 16 12 21 Page 1 of 5
© 2021, The Hartford
(Includes copyrighted material of Insurance Services Office, Inc. with its permission.)

COMMERCIAL AUTOMOBILE BROAD FORM

ENDORSEMENT
This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM
To the extent that the provisions of this endorsement provide broader benefits to the "insured" than other provisions of the Coverage Form, the provisions of this endorsement apply.

1. BROAD FORM INSURED
Paragraph .1. - WHO IS AN INSURED - of
Section II - Liability Coverage is amended to
add the following:
d. Subsidiaries and Newly Acquired or
Formed Organizations
The Named Insured shown in the
Declarations is amended to include:
(1) Any legal business entity other than a
partnership or joint venture, formed as a
subsidiary in which you have an
ownership interest of more than 50% on
the effective date of the Coverage Form.

However, the Named Insured does not
include any subsidiary that is an
"insured" under any other automobile
policy or would be an "insured" under
such a policy but for its termination or
the exhaustion of its Limit of Insurance.
(2) Any organization that is acquired or
formed by you and over which you
maintain majority ownership. However,
the Named Insured does not include any
newly formed or acquired organization:
(a) That is a partnership or joint
venture,
(b) That is an "insured" under any other
policy,
(c) That has exhausted its Limit of
Insurance under any other policy, or
(d) 180 days or more after its
acquisition or formation by you,
unless you have given us notice of
the acquisition or formation.

Coverage does not apply to "bodily
injury" or "property damage" that results
from an "accident" that occurred before
you formed or acquired the organization.
e. Employees as Insureds
(1). Any "employee" of yours while using a
covered "auto" you don't own, hire or
borrow in your business or your
personal affairs.
f. Lessors as Insureds
(1). The lessor of a covered "auto" while the
"auto" is leased to you under a written
agreement if:
(a) The agreement requires you to
provide direct primary insurance for
the lessor and
(b) The "auto" is leased without a
driver.

Such a leased "auto" will be considered a
covered "auto" you own and not a covered
"auto" you hire.
g. Additional Insured if Required by Contract
(1) When you have agreed, in a written
contract or written agreement, that a
person or organization be added as an
additional insured on your business auto
policy, such person or organization is an
"insured", but only to the extent such
person or organization is liable for
"bodily injury" or "property damage"
caused by the conduct of an "insured"
under paragraphs a. or b. of Who Is An
Insured with regard to the ownership,
maintenance or use of a covered "auto."
The insurance afforded to any such
additional insured applies only if the
"bodily injury" or "property damage"
occurs:
(a) During the policy period, and
(b) Subsequent to the execution of such
written contract, and
Policy Number: 57UEABF4308

(c) Prior to the expiration of the period
of time that the written contract
requires such insurance be provided
to the additional insured.
(2) How Limits Apply
If you have agreed in a written contract
or written agreement that another
person or organization be added as an
additional insured on your policy, the
most we will pay on behalf of such
additional insured is the lesser of:
(a) The limits of insurance specified in
the written contract or written
agreement; or
(b) The Limits of Insurance shown in
the Declarations.

Such amount shall be a part of and not
in addition to Limits of Insurance shown
in the Declarations and described in this
Section.
(3) Additional Insureds Other Insurance
If we cover a claim or "suit" under this
Coverage Part that may also be covered
by other insurance available to an
additional insured, such additional
insured must submit such claim or "suit"
to the other insurer for defense and
indemnity.

However, this provision does not apply
to the extent that you have agreed in a
written contract or written agreement
that this insurance is primary and non-
contributory with the additional insured's
own insurance.
(4) Duties in The Event Of Accident, Claim,
Suit or Loss
If you have agreed in a written contract
or written agreement that another
person or organization be added as an
additional insured on your policy, the
additional insured shall be required to
comply with the provisions in LOSS
CONDITIONS 2. - DUTIES IN THE

EVENT OF ACCIDENT, CLAIM , SUIT
OR LOSS – OF SECTION IV –
BUSINESS AUTO CONDITIONS, in the
same manner as the Named Insured.

2. Primary and Non-Contributory if
Required by Contract
Only with respect to insurance provided to
an additional insured in A.1.g. - Additional
Insured If Required by Contract, the
following provisions apply:
(1) Primary Insurance When Required By
Contract
This insurance is primary if you have
agreed in a written contract or written
agreement that this insurance be
primary. If other insurance is also
primary, we will share with all that other
insurance by the method described in
Other Insurance 5.d.
(2} Primary And Non-Contributory To Other
Insurance When Required By Contract
If you have agreed in a written contract
or written agreement that this insurance
is primary and non-contributory with the
additional insured's own insurance, this
insurance is primary and we will not
seek contribution from that other
insurance.

Paragraphs (1) and (2) do not apply to other
insurance to which the additional insured
has been added as an additional insured.

When this insurance is excess, we will have
no duty to defend the insured against any
"suit" if any other insurer has a duty to
defend the insured against that "suit". If no
other insurer defends, we will undertake to
do so, but we will be entitled to the insured's
rights against all those other insurers.

When this insurance is excess over other
insurance, we will pay only our share of the
amount of the loss, if any, that exceeds the
sum of:
(1) The total amount that all such other
insurance would pay for the loss in the
absence of this insurance; and
(2) The total of all deductible and self-
insured amounts under all that other
insurance.

We will share the remaining loss, if any, by
the method described in SECTION IV-
Business Auto Conditions, B. General
Conditions, Other Insurance 5.d.

3. AUTOS RENTED BY EMPLOYEES
Any "auto" hired or rented by your "employee"
on your behalf and at your direction will be
considered an "auto" you hire.

The SECTION IV- Business Auto Conditions, B.

General Conditions, 5. OTHER INSURANCE
Condition is amended by adding the following:
e. If an "employee’s" personal insurance also
applies on an excess basis to a covered
"auto" hired or rented by your "employee" on
your behalf and at your direction, this
insurance will be primary to the
"employee’s" personal insurance.

Form HA 99 16 12 21 Page 3 of 5

4. AMENDED FELLOW EMPLOYEE EXCLUSION
EXCLUSION 5. - FELLOW EMPLOYEE - of
SECTION II - LIABILITY COVERAGE does not
apply if you have workers' compensation
insurance in-force covering all of your
"employees".

Coverage is excess over any other collectible
insurance.

5. HIRED AUTO PHYSICAL DAMAGE COVERAGE
If hired "autos" are covered "autos" for Liability
Coverage and if Comprehensive, Specified
Causes of Loss, or Collision coverages are
provided under this Coverage Form for any
"auto" you own, then the Physical Damage
Coverages provided are extended to "autos" you
hire or borrow, subject to the following limit.

The most we will pay for "loss" to any hired
"auto" is:
(1) $100,000;
(2) The actual cash value of the damaged or
stolen property at the time of the "loss"; or
(3) The cost of repairing or replacing the
damaged or stolen property,
whichever is smallest, minus a deductible. The
deductible will be equal to the largest deductible
applicable to any owned "auto" for that
coverage. No deductible applies to "loss"
caused by fire or lightning. Hired Auto Physical
Damage coverage is excess over any other
collectible insurance. Subject to the above limit,
deductible and excess provisions, we will
provide coverage equal to the broadest
coverage applicable to any covered "auto" you
own.

We will also cover 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, subject to a maximum of $1000 per
"accident".

This extension of coverage does not apply to
any "auto" you hire 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.

6. PHYSICAL DAMAGE - ADDITIONAL

TEMPORARY TRANSPORTATION EXPENSE

COVERAGE
Paragraph A.4.a. of SECTION III - PHYSICAL
DAMAGE COVERAGE is amended to provide a
limit of $50 per day and a maximum limit of
$1,000.

7. LOAN/LEASE GAP COVERAGE
Under SECTION III - PHYSICAL DAMAGE
COVERAGE, in the event of a total "loss" to a
covered "auto", we will pay your additional legal
obligation for any difference between the actual
cash value of the "auto" at the time of the "loss"
and the "outstanding balance" of the loan/lease.
"Outstanding balance" means the amount you
owe on the loan/lease at the time of "loss" less
any amounts representing taxes; overdue
payments; penalties, interest or charges
resulting from overdue payments; additional
mileage charges; excess wear and tear charges;
lease termination fees; security deposits not
returned by the lessor; costs for extended
warranties, credit life Insurance, health, accident
or disability insurance purchased with the loan
or lease; and carry-over balances from previous
loans or leases.

8. AIRBAG COVERAGE
Under Paragraph B. EXCLUSIONS - of

SECTION III - PHYSICAL DAMAGE
COVERAGE, the following is added:

The exclusion relating to mechanical breakdown
does not apply to the accidental discharge of an
airbag.

9. ELECTRONIC EQUIPMENT - BROADENED

COVERAGE
a. The exceptions to Paragraphs B.4 -
EXCLUSIONS - of SECTION III - PHYSICAL
DAMAGE COVERAGE are replaced by the
following:

Exclusions 4.c. and 4.d. do not apply to
equipment designed to be operated solely by
use of the power from the "auto's" electrical
system that, at the time of "loss", is:
(1) Permanently installed in or upon the
covered "auto";
(2) Removable from a housing unit which is
permanently installed in or upon the
covered "auto";
(3) An integral part of the same unit housing
any electronic equipment described in
Paragraphs (1) and (2) above; or
(4) Necessary for the normal operation of the
covered "auto" or the monitoring of the
covered "auto's" operating system.
b. Section III, Physical Damage Coverage,
Limit of Insurance, Paragraph C.2. is
amended to add the following:
$1,500 is the most we will pay for "loss" in
any one "accident" to all electronic
equipment (other than equipment designed
solely for the reproduction of sound, and
accessories used with such equipment) that
reproduces, receives or transmits audio,
visual or data signals which, at the time of
"loss", is:

(1) Permanently installed in or upon the
covered "auto" in a housing, opening or
other location that is not normally used
by the "auto" manufacturer for the
installation of such equipment;
(2) Removable from a permanently installed
housing unit as described in Paragraph

2.a. above or is an integral part of that
equipment; or
(3) An integral part of such equipment.
c. For each covered "auto", should loss be
limited to electronic equipment only, our
obligation to pay for, repair, return or replace
damaged or stolen electronic equipment will
be reduced by the applicable deductible
shown in the Declarations, or $250,
whichever deductible is less.

10. EXTRA EXPENSE - BROADENED

COVERAGE
Under Paragraph A. - COVERAGE - of SECTION
III - PHYSICAL DAMAGE COVERAGE, we will
pay for the expense of returning a stolen covered
"auto" to you.

11. GLASS REPAIR - WAIVER OF DEDUCTIBLE
Under Paragraph D. - DEDUCTIBLE - of

SECTION III - PHYSICAL DAMAGE COVERAGE,
the following is added:

No deductible applies to glass damage if the
glass is repaired rather than replaced.

12. TWO OR MORE DEDUCTIBLES
Under Paragraph D. - DEDUCTIBLE - of

SECTION III - PHYSICAL DAMAGE COVERAGE,
the following is added:

If another Hartford Financial Services Group,
Inc. company policy or coverage form that is not
an automobile policy or coverage form applies to
the same "accident", the following applies:
(1) If the deductible under this Business Auto
Coverage Form is the smaller (or smallest)
deductible, it will be waived;
(2) If the deductible under this Business Auto
Coverage Form is not the smaller (or
smallest) deductible, it will be reduced by
the amount of the smaller (or smallest)
deductible.

13. AMENDED DUTIES IN THE EVENT OF

ACCIDENT, CLAIM, SUIT OR LOSS
The requirement in LOSS CONDITIONS 2.a. -

DUTIES IN THE EVENT OF ACCIDENT,
CLAIM, SUIT OR LOSS - of SECTION IV -
BUSINESS AUTO CONDITIONS that you must
notify us of an "accident" applies only when the
"accident" is known to:
(1) You, if you are an individual;
(2) A partner, if you are a partnership;
(3) A member, if you are a limited liability
company; or
(4) An executive officer or insurance manager, if
you are a corporation.

14. UNINTENTIONAL FAILURE TO DISCLOSE

HAZARDS
If you unintentionally fail to disclose any hazards
existing at the inception date of your policy, we
will not deny coverage under this Coverage
Form because of such failure.

15. HIRED AUTO - COVERAGE TERRITORY

SECTION IV, BUSINESS AUTO CONDITIONS,
PARAGRAPH B. GENERAL CONDITIONS, 7. -

POLICY PERIOD, COVERAGE TERRITORY -
is added to include the following:
(6) For short-term hired "autos", the coverage
territory with respect to Liability Coverage is
anywhere in the world provided that if the
"insured's" responsibility to pay damages for
"bodily injury" or "property damage" is
determined in a "suit," the "suit" is brought in
the United States of America, the territories
and possessions of the United States of
America, Puerto Rico or Canada or in a
settlement we agree to.

16. WAIVER OF SUBROGATION
Paragraph 5. TRANSFER OF RIGHTS OF
RECOVERY AGAINST OTHERS TO US - of

SECTION IV - BUSINESS AUTO CONDITIONS
A. Loss Conditions is amended by adding the
following:

We waive any right of recovery we may have
against any person or organization with whom
you have a written contract that requires such
waiver because of payments we make for
damages under this Coverage Form.

17. RESULTANT MENTAL ANGUISH COVERAGE
The definition of "bodily injury" in SECTION V-
DEFINITIONS, C. is replaced by the following:
"Bodily injury" means bodily injury, sickness or
disease sustained by any person, including
mental anguish or death resulting from any of
these.

18. EXTENDED CANCELLATION CONDITION
Paragraph 2. of the COMMON POLICY
CONDITIONS - CANCELLATION - applies
except as follows:

If we cancel for any reason other than
nonpayment of premium, we will mail or deliver
to the first Named Insured written notice of
cancellation at least 60 days before the effective
date of cancellation.

Form HA 99 16 12 21 Page 5 of 5

19. HYBRID, ELECTRIC, OR NATURAL GAS

VEHICLE PAYMENT COVERAGE
In the event of a total loss to a "non-hybrid" auto
for which Comprehensive, Specified Causes of
Loss, or Collision coverages are provided under
this Coverage Form, then such Physical
Damage Coverages are amended as follows:
a. If the auto is replaced with a "hybrid" auto or
an auto powered solely by electricity or
natural gas, we will pay an additional 10%,
to a maximum of $2,500, of the "non-hybrid"
auto’s actual cash value or replacement
cost, whichever is less,
b. The auto must be replaced and a copy of a
bill of sale or new lease agreement received
by us within 60 calendar days of the date of
"loss,"
c. Regardless of the number of autos deemed
a total loss, the most we will pay under this
Hybrid, Electric, or Natural Gas Vehicle
Payment Coverage provision for any one
"loss" is $10,000.

For the purposes of the coverage provision,
a. A "non-hybrid" auto is defined as an auto
that uses only an internal combustion engine
to move the auto but does not include autos
powered solely by electricity or natural gas.
b. A "hybrid" auto is defined as an auto with an
internal combustion engine and one or more
electric motors; and that uses the internal
combustion engine and one or more electric
motors to move the auto, or the internal
combustion engine to charge one or more
electric motors, which move the auto.

20. VEHICLE WRAP COVERAGE
In the event of a total loss to an "auto" for which
Comprehensive, Specified Causes of Loss, or
Collision coverages are provided under this
Coverage Form, then such Physical Damage
Coverages are amended to add the following:

In addition to the actual cash value of the "auto",
we will pay up to $1,000 for vinyl vehicle wraps
which are displayed on the covered "auto" at the
time of total loss. Regardless of the number of
autos deemed a total loss, the most we will pay
under this Vehicle Wrap Coverage provision for
any one "loss" is $5,000. For purposes of this
coverage provision, signs or other graphics
painted or magnetically affixed to the vehicle are
not considered vehicle wraps.

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

Countersigned by
Authorized Representative
Form WC 04 03 06 (1) Printed in U.S.A.

Process Date: 07/10/25 Policy Expiration Date: 07/01/26

WAIVER OF OUR RIGHT TO RECOVER FROM

OTHERS ENDORSEMENT - CALIFORNIA
Policy Number: 57 WEA BS9FHZ Endorsement Number:

Effective Date: 07/01/25 Effective hour is the same as stated on the Information Page of the policy.

Named Insured and Address: MAR CON BUILDERS INC DBA MAR CON COMPANY 8108 CAPWELL DR
OAKLAND CA 94621
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.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule.

The additional premium for this endorsement shall be 2 % of the California workers' compensation premium otherwise due on such remuneration.

SCHEDULE
Person or Organization Job Description
Any person or organization for whom you are required by written contract or agreement to obtain this waiver of rights from us
U-GU-873-A CW (06/11)

Disclosure Statement

It is our pleasure to present the enclosed policy to you for presentation to your customer.

INSTRUCTION TO AGENT OR BROKER:

WE REQUIRE THAT YOU TRANSMIT THE ATTACHED/ENCLOSED DISCLOSURE STATEMENT TO THE CUSTOMER WITH THE POLICY.

Once again, thank you for your interest, and we look forward to meeting your needs and those of your customers.

U-GU-874-B CW (02/23)

Disclosure Statement

NOTICE OF DISCLOSURE FOR AGENT & BROKER COMPENSATION

If you want to learn more about the compensation Zurich pays agents and brokers visit:
https://www.zurichna.com/producercompensation
or call the following toll-free number: (866) 903-1192.

This Notice is provided on behalf of Zurich American Insurance Company and its underwriting subsidiaries.

California Disclosure Statement
U-GU-884-A CA (01-12)

Fully Earned premium

This policy is subject to the Total Fully Earned Policy Premium shown in the Declarations.

If this policy is cancelled you must pay at least the Total Fu lly Earned Policy Premium unless the policy is cancelled as of the inception date shown in the Declarations.

COMMERCIAL INLAND MARINE
CM P 008 12 23

CM P 008 12 23 © Insurance Services Office, Inc., 2022 Page 1 of 1

EXCLUSION OF LOSS DUE TO VIRUS OR BACTERIA

ADVISORY NOTICE TO POLICYHOLDERS

This Notice does not form a part of your insurance contra ct. No coverage is provided by this Notice, nor can it be construed to replace any provisions of your policy (including its endorsements). If there is any conflict between this Notice and the Policy (including its endorsements), the prov isions of the Policy (including its endorsements) shall prevail.

Carefully read your policy, including the endorsements attached to your policy.

This Notice provides information concerning the following new endorsement which applies to your new or renewal policy being issued by us:

Exclusion Of Loss Due To Virus Or Bacteria Endorsement CM 99 12 12 23 This endorsement makes an explicit statement regarding a risk that is not covered under your Commercial Inland Marine insurance. It points out that there is no coverage under such insurance for loss or damage caused by or resulting from any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or disease. The exclusion in this endorsement applies to all coverages provided by your Commercial Inland Marine insurance, including (if any) property damage and extra expense coverages.

BUILDERS RISK COVERAGE DECLARATIONS

The Declarations, Supplemental Declarations, Common
Policy Conditions, Commercial Inland Marine Conditions, A Stock Company Coverage Form(s) And Endorsement(s), if any, issued to Administrative Office: 1299 Zurich Way and forming a part thereof, complete the Commercial Schaumburg, IL 60196 Phone: 800-382-2150 Insurance Policy numbered as follows:

THIS IS A COINSURANCE CONTRACT
New Policy
Renewal of Please read your policy.

R e w r i t e o f

In return for the payment of the premium, and subject to all terms of this policy, we agree with you to provide the insurance as stated in this policy.

1. Named Insured and Mailing Address: 2. Producer Information:

A Name:

B Telephone #
C Fax #
D Zurich Producer #
3 . P o l i c y P e r i o d – F r o m : T o : E Field Office Name 12:01 a.m. at your mailing address ab ove. F Field Office Code

4. Form of Business: Individual Partnership Corporation Joint Venture O t h e r

5. Limits of Insurance (either One -Shot or Reporting Form as indicated below)

SUPPLEMENTAL DECLARATIONS
(If this box is checked, Supplemental Declarations is attached to an d forms a part of this policy) Reporting Form (continuous policy) One-Shot (non-reporting form/single structure policy) Annual Rate Monthly Rate (HBIS – 4) 1-4 Family Dwelling Commercial Structure Property Location
A) Any one building or structure $
B) All covered property at all locations $
C) Rate Per Report
D) Premium Per Report New Construction
E) Total Taxes and Surcharges Per Report A) Any one building or structure $

(per attached endorsement – N/A in
NY) B) All covered property at all locations $
F) Total Fully Earned Policy Premium Per Report (same as A unless otherwise noted) Remodeling
D) Renovations and improvements $
E) Existing buildings or structures $

F ) R a t e $
G) Premium $
H) $

I) Total Fully Earned Policy Premium $
(minimum premium applicable)

6. Deductible: $500 $1,000 $2,500 $5,000 Other

7. Forms Applicable To This Coverage Part:

SEE SCHEDULE OF FORMS AND ENDORSEMENTS

Countersigned: By:

Date Authorized Repres entative

✘
✘
A0213871
✘
✘
✘
2,337,267
2,337,267
See new construction

0.00Total Taxes and Surcharges
(per attached endorsement)
✘
2,711.00
09/03/2026
1041 W Midway Avenue, Bldg 2, Wing 3
Alameda, CA 94501
2,711.00

0.116
US ASSURE INSURANCE SERVICES OF FLORIDA, INC. D/B/A INLINK

INSURANCE SERVICES
P.O. BOX 10197
JACKSONVILLE, FL 32247-0197
Mar Con Builders, Inc.
8108A Capwell Drive
Oakland, CA 94621
ER78270599
American Zurich Insurance Company
12/03/2025
FM-170001 (04-10)

HBIS-91 (01 20)

BUILDERS RISK COVERAGE SUPPLEMENTAL DECLARATIONS
Policy Number:

P
olicy Type: Reporting Form (continuous policy) OR One Shot (non-reporting form/single structure policy)

ADDITIONAL COVERAGES (COVERAGE FORM) LIMIT OF INSURANCE a. Collapse
b. Scaffolding, Construction Forms And Temporary Structu res $ Re-erection Of Scaffolding $
c. Debris Removal $
d. Back-Up Or Overflow Of Sewers, Drains Or Sumps $
e. Fire Department Service Charge $
f. Valuable Papers And Records $
g. Pollutant Clean-Up And Removal $
h. Ordinance Or Law – Direct Damage
Loss To The Undamaged Portion Of The Building
Demolition Cost $
Increased Cost Of Construction $
Combined Aggregate For Demolition Cost And Increased C ost Of Construction $ i. Preservation Of Property
j. Rewards $
k. Property At A Temporary Storage Location $
l. Property In Transit $
m. Claim Preparation Expense $
n. Contract Penalties $

OPTIONAL ADDITIONAL COVERAGES (ENDORSEMENTS)
Business Income (HBIS-95) $
Anticipated Project Completion Date
Monthly Limit Of Indemnity (fraction)
Deductible Period days
Civil Authority
Business Income And Extra Expense (HBIS-82) $
Anticipated Project Completion Date
Monthly Limit Of Indemnity (fraction)
Deductible Period days
Business Income
Extra Expense
Civil Authority
Development Or Subdivision Fences, Walls And Signs (HBIS-58) $ Expediting Expense (HBIS-93) $
Extra Expense (HBIS-92) $
Marine Model Home Contents Coverage ( HBIS-52 – OR -- HBIS-77) $ Soft Costs Coverage (HBIS-88) $
Anticipated Project Completion Date
Deductible Period days
Expense To Mitigate Loss
Civil Authority
Builders Risk Green Building (HBIS-96)
Limit Of Liability $
"LEED® Building Rating"

ER78270599 ✘
Included
Included
25,000
10,000
25,000
50,000
1,000,000
25,000
1,000,000
Included
1,000,000
25,000
25,000
25,000
50,000
116,863
116,863
50,000

Policy Number

SCHEDULE OF FORMS AND ENDORSEMENTS

Named Insured: Effective Date:
12:01 A.M., Standard Time
Agent Name: Agent No.:

U-GU-619-A CW (10/02)
ER78270599
Mar Con Builders, Inc.

US ASSURE INSURANCE SERVICES OF FLORIDA, INC. D/B
12/03/2025
FM170001(04/10), HBIS-91(01/20), U-GU-619-A CW(10/02), U-GU-319-F(01/09), 40471 (01/20), 15100(01/24), CM9908(08/21), CM9912(12/23), HBIS-1(04/09), HBIS-83(06/17), HBIS-84(04/09), U-GU-630-E CW(01/20), U-GU-767-B CW(01/15), IL0003(09/08), CM0001(09/04), IL0104(07/20), IL0102(02/20), IL0017(11/98), IL0270(07/20), 1001NR(01/20), U-GU-1191-A CW(03/15)
A0213871
U-GU-319-F (01/09)

Important Notice – In Witness Clause

In return for the payment of premium, and subject to the terms of this policy, coverage is provided as stated in this policy.

IN WITNESS WHEREOF, this Company has executed and a ttested these presents and, where required by law, has caused this policy to be countersigned by its duly Authorized Representative(s).

[

]

[ ]

President Corporate Secretary

QUESTIONS ABOUT YOUR INSURANCE? Your agent or broker is best equipped to provide in formation about your insurance. Should you require additional informati on or assistance in resolving a complaint, call or write to the following (please have your policy or claim number ready):

Zurich in North America
Customer Inquiry Center
1299 Zurich Way
Schaumburg, Illinois 60196-1056
1-800-382-2150 (Business Hours: 8am - 4pm [CT])
Email : [email protected]

40471 (01-20)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

Builders Risk Coverage Form

Various provisions in this policy restrict coverage . Read the entire policy carefully to determine ri ghts, duties and what is and is not covered.

Throughout this policy, the words "you" and "your" refer to the Named Insured shown in the Declaration s. The words "we", "us" and "our" refer to the Company providing this insurance.

Words and phrases that appear in quotation marks have special meaning. Refer to Section F. DEFINITIONS .

Coverage provided by Coverage Form is also subject to all Conditions in the Common Policy Conditions a nd Commercial Inland Marine Conditions forms.

A. COVERAGE
We will pay for direct physical loss or damage to C overed Property from a Covered Cause of Loss described in this Coverage Form.

1. Covered Property , as used in the Coverage Form, means:

Property which has been installed or is to be insta lled in any "commercial structure" or any one to fo ur family dwelling, private garage or other structure that will be used to service the "commercial struct ure" or one to four family dwelling at the location which you have reported to us. This includes:
a. Your property;
b. Property of others for which you are legally responsible; c. Paving, curbing, fences and outdoor fixtures;
d. Trees, shrubs, plants, grass, lawns and landscaping materials installed by you or on your behalf; e. Completed single family dwelling which is being use d as a model home when reported to us as such on monthly reports with an amount shown; and
f. Foundations of buildings and foundations of structures in the course of construction.

2. Property Not Covered
Covered Property does not include:
a. Existing buildings or structures to which an additi on, alteration, improvement, or repair is being made, unless specifically endorsed;
b. Plans, blueprints, designs or specifications, excep t as provided in paragraph A.4. Additional Coverage of this Coverage Form;
c. Land and water;
d. "Existing inventory", unless specifically endorsed;
e. Contractors’ tools, equipment, machinery and proper ty of a similar nature not designated to be a permanent part of the location which you have reported to us; and f. Outdoor trees, shrubs, plants, grass, lawns and la ndscaping materials that existed prior to the policy's effective date at a location which you have reported to us. 40471 (01-20)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

3. Covered Cause Of Loss
Covered Cause of Loss means risk of direct physical loss or damage to Covered Property except those causes of loss listed in Section B. EXCLUSIONS .

4. Additional Coverages
a. Collapse
We will pay for direct physical loss or damage to C overed Property, caused by "collapse" of all or part of a building or structure insured under this Coverage Form, if the "collapse" is caused by one or more of the following:
(1) Fire; lightning; windstorm; hail; explosion; smoke; aircraft; vehicles; riots; civil commotion; vandalism; breakage of glass; falling objects; weight of snow, ice or sleet; (2) "Water damage", but only if the causes of loss are otherwise covered in this Coverage Form; (3) Hidden decay;
(4) Hidden insect or vermin damage;
(5) Weight of people or personal property;
(6) Weight of rain that collects on a roof; or
(7) Use of defective materials or methods in constructi on, remodeling or renovation if the "collapse" occurs during the course of the construction, remodeling or renovation.

This Additional Coverage does not increase the Limits of Insurance provided in the Coverage Form. b. Scaffolding, Construction Forms And Temporary St ructures (1) We will pay for direct physical loss or damage caus ed by or resulting from a Covered Cause of Loss to scaffolding, construction forms and tempora ry structures, including fully enclosed office and tool trailers, but only while they are at a construction site you have reported to us. The most we will pay for this Additional Coverage is the Lim it of Insurance shown in the Supplemental Declarations for Scaffolding, Construction Forms And Temporary Structures. (2) We will also pay for the cost of re-erection of the scaffold if the loss or damage of the scaffolding is caused by or results from a Covered Cause of Los s. The most we will pay for this Additional Coverage is the Limit of Insurance shown in the Sup plemental Declarations for Re-erection Of Scaffolding.

No deductible applies to this Additional Coverage.
c. Debris Removal
We will pay your expenses to remove debris of Cover ed Property caused by or resulting from a Covered Cause of Loss under this Coverage Form. The expenses will be paid only if they are reported to us in writing within 180 days of the da te of direct physical loss or damage . If the sum of the loss or damage and debris removal expenses exce eds the Limit of Insurance applicable to the property, we will pay an additional amount of debri s removal expenses you incur in excess of the Limit of Insurance applicable to the property up to , but not exceeding the Limit of Insurance shown in the Supplemental Declarations for Debris Removal.

This Additional Coverage does not apply to costs to:
(1) Extract "pollutants" from land or water; or
40471 (01-20)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

(2) Remove, restore or replace polluted land or water.

No deductible applies to this Additional Coverage.
d. Back-Up Or Overflow Of Sewers, Drains Or Sumps
We will pay for loss or damage to Covered Property caused by water that backs up or overflows from a sewer, drain or sump from within the reported location.

The most we will pay for all loss or damage caused by or resulting by back-up or overflow of sewers, drains or sumps is the Limit of Insurance, for any one occurrence, shown in the Supplemental Declarations for Back-Up Or Overflow Of Sewers, Drains Or Sumps.

No deductible applies to this Additional Coverage.
e. Fire Department Service Charge
When the fire department is called to save or prote ct Covered Property from a Covered Cause of Loss, we will pay for your liability for the fire department service charges which are:
(1) Assumed by contract or agreement prior to loss or damage; or (2) Required by local ordinance or law.

The most we will pay for this Additional Coverage i s the Limit of Insurance shown in the Supplemental Declarations for Fire Department Service Charge.

No deductible applies to this Additional Coverage.
f. Valuable Papers And Records
We will pay for direct physical loss or damage to " valuable papers and records" caused by or resulting from a Covered Cause of Loss.

When there is a duplicate, we will pay for the blan k materials for reproducing the records and labor to transcribe or copy the records. When there is n o duplicate, we will pay the costs to research, replace, restore or reproduce the lost information on lost or damaged "valuable papers and records".

The most we will pay for this Additional Coverage i s the Limit of Insurance shown in the Supplemental Declarations for Valuable Papers And Records.

No deductible applies to this Additional Coverage.
g. Pollutant Clean-Up And Removal
We will pay your expense to extract "pollutants" fr om land or water at locations reported to us if the discharge, dispersal, seepage, migration, release o r escape of the "pollutants" is caused by or results from a Covered Cause of Loss that occurs du ring the policy period. The expenses will be paid only if they are reported to us in writing wit hin 180 days of the date on which the Covered Cause of Loss occurs.

This Additional Coverage does not apply to costs to test for, monitor or assess the existence, concentration or effects of "pollutants". But we wi ll pay for testing which is performed in the course of extracting the "pollutants" from land or water.

The most we will pay for this Additional Coverage i s the Limit of Insurance shown on the Supplemental Declarations for Pollutant Clean-Up An d Removal during each separate 12 month period from the effective date of the policy.
40471 (01-20)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

No deductible applies to this Additional Coverage.
h. Ordinance Or Law – Direct Damage
(1) Coverage For Loss To Undamaged Portion Of The Building Or Structure (a) If a Covered Cause of Loss occurs to Covered Proper ty at the construction site reported to us, we will pay for loss or damage to the undamaged portion of the property as a consequence of enforcement of any ordinance or law that:
(i) Requires the demolition of parts of the same property not damaged by a Covered Cause of Loss;
(ii) Regulates the construction or repair of property, o r establishes zoning or land use requirements at the construction site; and
(iii) Is in force at the time of loss or damage.
(b) Coverage for loss or damage to the undamaged portio n of the structure is included within the applicable Limit of Insurance for that location. This is not additional insurance. (2) Demolition Cost Coverage
(a) If a Covered Cause of Loss occurs to Covered Proper ty at the construction site reported to us, we will pay the cost to demolish and clear the construction site of undamaged parts of the property, as a consequence of enforcement of bu ilding, zoning or land use ordinance or law.
(b) The most we will pay for Demolition Cost Coverage i s the amount of loss or damage or the Limit of Insurance shown in the Supplemental Declarations for Demolition Cost, whichever is less.
(3) Increased Cost Of Construction Coverage
(a) If a Covered Cause of Loss occurs to Covered Proper ty at the construction site reported to us, we will pay for the increased cost necessary to repair, rebuild or reconstruct the damaged portions of that Covered Property when the increased cost is a consequence of enforcement of building, zoning or land use ordinan ce or law. If the Covered Property is repaired or rebuilt, it must be intended for the sa me occupancy as the property prior to the loss or damage, unless otherwise required by zoning land use ordinance or law. (b) If the ordinance or law requires relocation to anot her site, we will pay the increased cost of construction at the new site as set forth below in paragraph (c) below. (c) The most we will pay for Increased Cost of Construc tion Coverage is the amount of loss or damage or the Limit of Insurance shown in the Suppl emental Declarations for Increased Cost Of Construction, whichever is less.
(d) We will not pay under this coverage for costs assoc iated with the enforcement of any ordinance or law that was in effect prior to the st art of the construction at the location you have reported to us.
(4) The most we will pay in total for Demolition Cost C overage and Increased Cost of Construction Coverage for loss or damage from any one occurrence is the Limit of Insurance shown in the Supplemental Declarations for Combined Aggregate Fo r Demolition Cost And Increased Cost Of Construction.
40471 (01-20)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

(5) We will not pay under this Additional Coverage for costs associated with the enforcement of any ordinance or law which requires any insured or othe rs to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any w ay respond to or assess the effects of "pollutants".
(6) We will not pay under this Additional Coverage for costs associated with the enforcement of any ordinance or law for existing buildings or structures.
i. Preservation Of Property
If it is necessary to move Covered Property from th e location reported to us or described on the Declarations, to preserve it from loss or damage by a Covered Cause of Loss, we will pay for any direct physical loss or damage to that property:
(1) While it is being moved or while temporarily stored at another location; and (2) Only if the loss or damage occurs within 30 days after the property is first moved.

This Additional Coverage is part of, and not in add ition to, the Limit of Insurance applicable to the Covered Property.
j. Rewards
At our option, we may reimburse you for rewards you pay, other than to you, your partners or officers, for information which leads to the convic tion of any one or more persons responsible for loss or damage covered under this Coverage Form. P ayment and the amount of any reimbursement will be at our sole discretion.

The most we will pay for this Additional Coverage i s the Limit of Insurance shown in the Supplemental Declarations for Rewards.
k. Property At A Temporary Storage Location
We will pay for direct physical loss or damage caus ed by a Covered Cause of Loss to Covered Property while temporarily in storage at a location other than a location which you have reported to us.

We will not pay under this Additional Coverage for property in storage if the property has not been specifically allocated to or otherwise identified with a covered building or structure.

The most we will pay for this Additional Coverage i s the Limit of Insurance shown in the Supplemental Declarations for Property At A Temporary Storage Location. l. Property In Transit
We will pay for direct physical loss or damage caus ed by a Covered Cause of Loss to Covered Property while in transit.

The most we will pay for this Additional Coverage i s the Limit of Insurance shown in the Supplemental Declarations for Property In Transit.
m. Claim Preparation Expense
We will reimburse your actual costs for reasonable and necessary claim preparation expenses, as requested by us for determining the amount of loss or damage, prior to finalizing a claim adjustment, as a result of a Covered Cause of Loss.
(1) Claim preparation expense means the expense incurred by you for:
40471 (01-20)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

(a) Your employees to produce or certify any particulars or details contained within your books or documents, or such other proofs, information or evidence required by us; (b) Taking inventory, conducting independent appraisals, or gathering and preparing other data to substantiate the amount of loss or damage; and
(c) Services provided by accountants, auditors, contractors, architects and engineers or other professionals solely for the purpose of determining the amount of loss or damage. (2) Claim preparation expense does not mean the expense incurred for:
(a) Negotiating or presenting any claim that we have disputed or denied; (b) Attorneys, public adjusters, loss appraisers or loss consultants; or (c) Examinations under oath, even if requested by us.

This Additional Coverage does not apply until a cla im for covered loss or damage to Covered Property has been submitted to and accepted by us. In the ev ent that the amount of covered loss or damage does not exceed the applicable Deductible, n o coverage will apply under this Additional Coverage.

The most we will pay for this Additional Coverage i n any one occurrence is the Limit of Insurance shown in the Supplemental Declarations for Claim Preparation Expense.

No deductible applies to this Additional Coverage.
n. Contract Penalties
If the first Named Insured is a general contractor, we will pay contractual penalties the first Named Insured is legally liable to pay under the provisio ns of a written construction contract signed prior to the start of construction for late or non-completio n of construction due to direct physical loss or damage to Covered Property from a Covered Cause of Loss at the location which you have reported to us.

The most we will pay for this Additional Coverage i n any one occurrence is the Limit of Insurance shown in the Supplemental Declarations for Contract Penalties.

No deductible applies to this Additional Coverage.

Paragraph 2.e. of Section B. EXCLUSIONS does not apply to this Additional Coverage.

B. EXCLUSIONS

1. We will not pay for loss or damage caused directly or indirectly by or resulting from any of the following.

Such loss or damage is excluded regardless of any o ther cause or event that contributes concurrently or in any sequence to the loss or damage .
a. Governmental Action
Seizure or destruction of property by order of any governmental authority. But we will pay for loss or damage caused by or resulting from acts of destruct ion ordered by governmental authority and taken at the time of a fire to prevent its spread, if that fire would be covered under this Coverage Form.
b. Nuclear Hazard
Nuclear reaction or radiation, or radioactive contamination, however caused. 40471 (01-20)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

But if nuclear reaction or radiation contamination results in fire, we will pay for the loss or damage caused by that fire.
c. War And Military Action
(1) War, including undeclared or civil war;
(2) Warlike action by a military force, including actio n hindering or defending against an actual or expected attack by any government, sovereign or oth er authority using military personnel or other agents; or
(3) Insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hindering or defending against any of these.
d. Earth Movement
(1) Any earth movement (other than sinkhole collapse), such as an earthquake, landslide, mine subsidence or earth sinking, rising or shifting. Bu t if earth movement results in fire or explosion, we will pay for the loss or damage caused by that fire or explosion. (2) Volcanic Action
Volcanic eruption, explosion or effusion. But if vo lcanic eruption, explosion or effusion results in fire, building glass breakage or volcanic action, w e will pay for the loss or damage caused by that fire, building glass breakage or volcanic action.

Volcanic action means direct loss or damage resulti ng from the eruption of a volcano when the loss or damage is caused by:
(a) Airborne volcanic blast or airborne shock waves;
(b) Ash, dust or particulate matter; or
(c) Lava flow.

All volcanic eruptions that occur within any 168 hour period will constitute a single occurrence.

Volcanic action does not include the cost to remove ash, dust or particulate matter that does not cause direct physical loss or damage to the described property.

This exclusion does not apply to Covered Property while in transit. e. Water
(1) Flood, surface water, waves, tides, tidal waves, ts unami, overflow of any body of water or their spray, all whether driven by wind or not;
(2) The interior of any building or structure caused by or resulting from rain, snow, sleet, ice, sand or dust, whether driven by wind or not, unless:
(a) The building or structure first sustains damage by a Covered Cause of Loss to its roof or walls through which the rain, snow, sleet, ice, sand or dust enters; or (b) The loss or damage is caused by or results from thawing of snow, sleet or ice on the building or structure.
(3) Mudslide or mudflow;
(4) Water that backs up or overflows from a sewer, drai n or sump, except as provided in the Back- Up Or Overflow Of Sewers, Drains Or Sumps Additional Coverage; 40471 (01-20)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

(5) Water under the ground surface pressing on, or flowing or seeping through Covered Property; (6) Water, other liquids, powder or molten material tha t leaks or flows from plumbing, heating, air conditioning or other equipment (except fire protec tive systems) caused by or resulting from freezing unless you:
(a) Do your best to maintain heat in the building or structure; or (b) Drain the equipment and shut off the supply if the heat is not maintained.

But if water, as described in e.(1) through e.(5) above, results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage.

2. We will not pay for a loss or damage caused by or resulting from any of the following:
a. Delay, loss of use, or loss of market. This does not include "profit" if reported in compliance with the Reporting Provisions Additional Condition.
b. Dishonest or criminal acts by you, any of your part ners, employees or leased employees, directors, trustees, authorized representatives or anyone to whom you entrust the property for any purpose.

This exclusion applies:
(1) While acting alone or in collusion with others; and (2) Whether or not occurring during the hours of employment.

This exclusion does not apply to acts of physical d estruction by your employees or leased employees.

This exclusion does not apply to Covered Property w hile it is entrusted to others who are carriers for hire.
c. Unexplained or mysterious disappearance except for property in custody of a carrier for hire. d. Shortage of property found upon taking inventory.
e. Penalties for noncompliance with contract condition s, except as provided in the Contract Penalties Additional Coverage.
f. " Collapse", except as provided in the Collapse Additional Coverage. g. (1) Wear and tear.
(2) Any quality in the property itself that causes it to damage or destroy itself; or that causes gradual deterioration.
(3) Insects, vermin, rodents.
(4) Corrosion, rust, fungus, mold, mildew, rot.
(5) Dampness, changes in or extremes of temperatures, all whether atmospheric or not. (6) Settling, cracking, shrinking, or expansion of any Covered Property. h. Rain, snow, sleet, sand or dust that damages Covere d Property that is in the open awaiting installation at the location reported to us. This d oes not apply to Covered Property in the custody of a carrier for hire.
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Includes copyrighted material of Insurance Services Office, Inc., with its permission.

i. Artificially generated electrical current; mechanic al breakdown; rupturing or bursting caused by centrifugal force.
j. Testing, start-up, commissioning, examination or tr ial of Covered Property such as boilers, ovens, stoves, turbines, pumps, process equipment or equipment of a similar nature to prove their ability or function. This includes any form of testing making use of feedstock, including operational tests, performance tests, or other tests performed in conj unction with such testing. This exclusion does not apply to "electrical testing", "mechanical test ing", "pneumatic testing" or "hydrostatic testing" used in the start-up and testing of building systems that are intended to service a building.

3. We will not pay for loss or damage caused by or res ulting from any of the following. But if loss or damage by a Covered Cause of Loss results, we will pay for the resulting loss or damage caused by that Covered Cause of Loss.
a. Weather conditions which contribute in any way to a cause or event excluded in paragraph 1. above to produce the loss or damage .
b. Acts or decisions, including the failure to act or decide, of any person, group, or organization representing a governmental, regulatory or controlling body. c. Faulty, inadequate or defective:
(1) Planning, zoning, development, surveying, siting;
(2) Design, specifications, workmanship, repair, constr uction, renovation, remodeling, grading, compaction;
(3) Materials used in repair, construction, renovation or remodeling; or (4) Maintenance;
of all or part of any Covered Property wherever located. d. The discharge, dispersal, seepage, migration, release or escape of "pollutants", except as provided under Pollutant Clean-Up And Removal Additional Coverage.

C. LIMITS OF INSURANCE
The most we will pay for loss or damage to any one building or structure is the lesser of the Limit of Insurance shown in the Declarations for that one bu ilding or structure or the "total estimated complet ed value" that was reported to us for that one building or structure. The most we will pay for loss or da mage in any one occurrence is the Limit of Insurance shown in the Declarations for all Covered Property at all locations.

D. DEDUCTIBLE
We will not pay for loss or damage in any one occur rence until the amount of covered loss or damage exceeds the Deductible shown in the Declarations. W e will then pay the amount of the covered loss or damage which exceeds the Deductible, up to the applicable Limit of Insurance.

E. ADDITIONAL CONDITIONS
The following conditions apply in addition to the C ommon Policy Conditions and the Commercial Inland Marine Conditions:

1. Coverage Territory
The coverage territory is United States of America (including its territories and possessions). 40471 (01-20)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

2. Where Coverage Applies
This coverage applies to Covered Property while within the coverage territory while:
a. At any construction site you have reported;
b. Temporarily at other premises, if the property has been designated to be installed at a location you have reported to us; or
c. In transit except imports or exports while ocean marine coverage applies.

3. When Coverage Begins And Ends
We will cover risk of loss or damage from the time when you are legally responsible for the Covered Property on or after the effective date of this pol icy if all other conditions are met. Coverage will end at the earliest of the following:
a. Once your interest in the Covered Property ceases;
b. Ninety days after initial occupancy of the Covered Property unless:
(1) That building is being used as a model home;
(2) That building is being remodeled and is a single family dwelling; or (3) That building is being used as a "model home leaseback". c. When the Covered Property is leased to or rented to others:
(1) For a single family dwelling, when the building is leased or rented to others; (2) For a two, three or four family dwelling, when 50% or more of the units in the structure are leased to or rented to others; or
(3) For a "commercial structure", when 75% or more of t he square footage space is leased to or rented to others.

This does not apply to pre-leases established prior to construction. d. When you abandon the reported location with no intention to complete it; e. At the end of 12 months from the month when you fir st reported the location to us unless you report the location again and pay an additional premium. I f the location is reported again and the additional premium is paid, coverage will end at th e end of 12 months from the month when you re- reported the location to us as described in the Reporting Provisions Additional Condition. You have the option to report the same location a third time at the end of the second 12 month period, provided the required additional premium is paid. C overage for this third 12 month term will end at the end of 12 months from the month you re-reported the location for a third term; or For coverage on existing buildings or structures th at are being or have been remodeled, at the end of 12 months from the month when you first reported the location to us unless you report the location again and pay an additional premium. If th e location is reported again and the additional premium is paid, coverage will end at the end of 12 months from the month when you re-reported the location to us as described in the reporting pr ovision below. There is no option to report a third year.
f. When permanent property insurance applies, whether procured by an insured hereunder or by the owner or purchaser; or
40471 (01-20)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

g. Once the Covered Property is accepted by the owner or buyer and:
(1) The contractor has been paid in full; or
(2) The transfer of ownership has taken place.

4. Reporting Provisions
a. Each month you must report to us the "total estimated completed values" of all Covered Property for each location started during the previous month. This report must be made on the form we provide.

For the purpose of these reports, a location is sta rted when you first put any building materials (including the foundation) on the construction site.

If your policy is endorsed to provide coverage for existing structures that you are renovating or adding onto and for which you seek coverage, a location is started on the earlier of the following:
(1) When you first put any building materials, which in cludes any new, altered or expanded foundation, on the site; or
(2) When you acquire title to the existing structure.
b. You must pay premiums based on the "total estimated completed value" of the Covered Property using the rate we furnish. You must send your premi um payment with the report for the reported locations to be covered. We must receive your repor t and the accompanying premium payments at the address designated in our form by the last business day of the month in which the report is due, or the report is late.
c. If a report is received late, coverage begins on th e day the report is received, and there is no coverage for any loss or damage that occurred befor e that report was received. Our acceptance of a report of values and premium payment does not waive or change any part of this policy or stop us from asserting any right we have under the terms of this policy. d. The premium charged is fully earned and no refund is due you when coverage ends. e. A dwelling being used as a model home must be repor ted and should be identified as a model home.
f. You will keep accurate construction records regardi ng property we cover under this policy. This includes the "total estimated completed value" of the Covered Property and a record of all contracts of sale dealing with the Covered Property.
g. If at the end of 12 months from the time you first reported a start to us, you still have that location in your inventory, you may report that location to us a second time. If at the end of the second 12 months from the time you first reported a start to us, you still have that location in your inventory, you may report that location to us a third time.

For coverage on existing buildings or structures th at are being or have been remodeled, if at the end of 12 months from the time you first reported a start to us, you still have that location in your inventory, you may report that location to us a second time. There is no option to report a third time. h. Cancellation of this policy will not affect the ins urance in force on any location which you have reported to us or on any location which started bef ore the effective date of the cancellation notice i f that location is reported on the report due and pre mium payment is made. However, you cannot report any location currently in your inventory a second time after the effective date of cancellation. 40471 (01-20)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

However, coverage may be canceled on any location i f notice is given in writing in accordance with the cancellation provision in the Common Policy Conditions, or state amendatory endorsements.

5. Mortgage Holders Clause
a. The term mortgage holder includes trustees.
b. We will pay for covered loss or damage to Covered P roperty to each mortgage holder shown on a Certificate of Insurance issued by the current Agent of Record. c. The mortgage holder has the right to receive paymen t for loss or damage even if the mortgage holder has started foreclosure or similar action on the Covered Property. d. If we deny your claim because of your acts or becau se you have failed to comply with the terms of this Coverage Part, the mortgage holder will still have the right to receive payment for loss or damage to Covered Property if the mortgage holder:
(1) Pays any premium due under this Coverage Part at our request if you have failed to do so; (2) Submits a signed, sworn proof of loss within 60 day s after receiving notice from us of your failure to do so; and
(3) Has notified us of any change in ownership, occupan cy or substantial change in risk known to the mortgage holder.

All of the terms of this Coverage Part will then apply directly to the mortgage holder. e. If we pay the mortgage holder for any loss or damag e and deny payment to you because of your acts or because you have failed to comply with the terms of this Coverage Part:
(1) The mortgage holder’s rights under the mortgage wil l be transferred to us to the extent of the amount we pay; and
(2) The mortgage holder’s rights to recover the full am ount of the mortgage holder’s claim will not be impaired.

At our option, we may pay to the mortgage holder th e whole principal on the mortgage plus any accrued interest. In this event, your mortgage and note will be transferred to us and you will pay your remaining mortgage debt to us.
f. If we cancel this policy, we will give written notice to the mortgage holder at least:
(1) 10 days before the effective date of cancellation if we cancel for non-payment of premium; or (2) 30 days before the effective date of cancellation if we cancel for any other reason. g. We will not notify the mortgage holder if:
(1) You cancel this policy, or
(2) Coverage ends for any reason other than if we cancel the policy.

6. Waiver Of Coinsurance
If there is loss or damage to Covered Property and the cost to repair or replace such property is less than or equal to $25,000, we will adjust the loss o r damage without regard to the Coinsurance Additional Condition.

7. Coinsurance
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Includes copyrighted material of Insurance Services Office, Inc., with its permission.

If the reported value is less than the "total estim ated completed value" , you will bear a portion of any loss or damage. The amount we will pay is determined by the following steps:
a. Divide the reported value by the "total estimated completed value" of the Covered Property; b. Multiply the total amount of the covered loss or da mage before the application of any deductible by the percentage determined in paragraph a. ; and
c. Subtract the deductible from the figure determined in paragraph b.

Example No. 1
(This example assumes there is no penalty for underinsurance.) Deductible $1,000
Reported Value $100,000
"Total Completed Estimated Value" $100,000
Amount of loss or damage $60,000
a. Reported value divided by "total estimated complet ed value" $100,000/$100,000 = 1.00
b. Amount of loss or damage multiplied by percentage in paragraph a. $60,000 x 1.00 = $60,000
c. Deductible amount subtracted from result of paragr aph b. $60,000 - $1,000 = $59,000
Example No. 2
(This example assumes there is a penalty for underinsurance) Deductible $1,000
Reported Value $100,000
"Total estimated completed value" $120,000
Amount of loss or damage $60,000
a. Reported value divided by "total estimated complet ed value" $100,000/$120,000 = .833
b. Amount of loss or damage multiplied by percentage in paragraph a. $60,000 x .833 = $49,980
c. Deductible amount Subtracted from result of paragr aph b. $49,980 - $1,000 = $48,980

8. Liberalization Clause
40471 (01-20)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

If we adopt any revision which would broaden the co verage under this Coverage Form without additional premium within 60 days prior to or durin g the policy period, the broadened coverage will immediately apply to this Coverage Form.

9. Interest Of Subcontractors, Sub-Subcontractors, Suppliers We cover the interest which your subcontractors, yo ur sub-subcontractors and your suppliers have in the Covered Property, but only while such property is situated at a construction site you have reporte d to us. This condition does not impair any right of subrogation we would otherwise have.

10. Unintentional Failure To Disclose Hazards
Your failure to disclose all hazards existing as of the inception date of the policy shall not affect the coverage afforded by this policy, provided such fai lure to disclose all hazards is not intentional and the hazard is reported to us as soon as practicable after you learn about it.

F. DEFINITIONS

1. "Collapse" means the abrupt falling down or the cav ing in of a building or structure or a part of a building or structure with the result that the buil ding or structure cannot be occupied for its intend ed use:
a. A part of a building or structure that is in dange r of falling down or caving in is not considered to be in a state of collapse;
b. A part of a building or structure that is standing is not considered to be in the state of collapse e ven if it is separated from another part of a building or structure; c. A building or structure that is standing or any pa rt of a building or structure that is standing is n ot considered to be in the state of collapse even if i t shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion.

2. "Commercial structure" means any structure other than a one to four family dwelling.

3. "Electrical testing" means the testing of systems t hat are operated by electricity, excluding service equipment and service conductors, electrical system s greater than 600 volts nominal and electrical systems that are greater than single phase.

4. "Existing inventory" means buildings or structures where construction was started and more than 30% of the "total estimated completed value" was completed prior to the inception date of this policy.

5. "Hydrostatic testing" means testing through the use of water or other fluids, which are processed through the machinery or system being tested.

6. "Mechanical testing" means testing of moving parts of equipment and components, which are part of the buildings or structures insured, by operation of such equipment or components.

7. "Model home leaseback" means a dwelling purchased f rom the Insured and is then leased back to the Insured, by the purchaser, to be used by the Insured as a model home until the purchaser occupies the dwelling as a residence.

8. "Overhead" means those business expenses, other tha n materials and labor, incurred either directly or indirectly due to the construction of a dwelling or structure.

9. "Pollutants" mean any solid, liquid, gaseous or the rmal irritant or contaminant, including smoke, vapo r, soot fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed.
40471 (01-20)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

10. "Pneumatic testing" means testing through the use o f compressed air or other gas to fill test cavities which is processed through the machinery or system being tested.

11. "Profit" means the difference between the selling p rice of the land and completed structure and your cost of the land and the completed structure. If yo u do not have a signed contract for the sale of the completed structure and land, the allowance for "profit" will not exceed 20%.

12. "Total estimated completed value" means all costs associated with the building and de signing of the Covered Property including labor, "overhead" and materials and if included, "profit".

13. "Valuable papers and records" means inscribed, prin ted or written documents, manuscripts or records, including abstracts, books, deeds, drawings, films, maps or mortgages. However, "valuable papers and records" does not mean:
a. Money or securities;
b. Converted data; or
c. Programs or instructions used in your data processi ng operation, including the materials on which the data is recorded.

14. "Water damage" means accidental discharge or leakag e of water or steam as the direct result of the breaking apart or cracking of any part of a system or appliance (other than a sump system including it s related equipment and parts) containing water or steam.

15100 (01/24)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

Form Enabling Endorsement

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement modifies insurance provided under the:

Builders Risk And Installation Coverage Form
Builders Risk Coverage Form
Installation Coverage Form
Construction Materials And Installation Coverage Form
Commercial Construction Materials And Installation Coverage Form Marine Model Home Contents Coverage Form
Miscellaneous Property Coverage Form
Contractor's Equipment Coverage

Your policy may contain Insurance Services Office, Inc. (ISO ) forms and endorsements. Any section or provision of any ISO form or endorsement that makes reference to the Commercial Inland Marine Coverage Part is applicable to the Builders Risk And Installation Coverage Form, Builders Risk Coverage Form, Installation Coverage Form, Construction Materials And Installation Coverage Form, Commercial Construction Materials And Installation Coverage Form, Marine Model Home Contents Coverage Form, and Miscellaneous Property Coverage Form.

All other terms, conditions, provisions, and exclusions of this policy remain the same.

COMMERCIAL INLAND MARINE
CM 99 08 08 21

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CM 99 08 08 21 © Insurance Services Office, Inc., 2021 Page 1 of 1 Wolters Kluwer | Uniform Forms

CYBER INCIDENT EXCLUSION

This endorsement modifies insurance provided under the following:

COMMERCIAL INLAND MARINE COVERAGE PART

A. The following exclusion is added to Paragraph B.

Exclusions:

We will not pay for loss or damage caused directly
or indirectly by the following. Such loss or damage
is excluded regardless of any other cause or event
that contributes concurrently or in any sequence to
the loss.

Cyber Incident

1. Unauthorized access to or use of any computer
system (including electronic data).

2. Malicious code, virus or any other harmful code
that is directed at, enacted upon or introduced
into any computer system (including electronic
data) and is designed to access, alter, corrupt,
damage, delete, destroy, disrupt, encrypt,
exploit, use or prevent or restrict access to or
the use of any part of any computer system
(including electronic data) or otherwise disrupt
its normal functioning or operation.

3. Denial of service attack which disrupts,
prevents or restricts access to or use of any
computer system, or otherwise disrupts its
normal functioning or operation.

B. Fire Or Explosion Exception
If a cyber incident as described in Paragraphs A.1.
through A.3. of this exclusion results in fire or
explosion, we will pay for the loss or damage
caused by that fire or explosion.

C. Vandalism
The following is added to vandalism:

Vandalism does not include a cyber incident as
described in Paragraph A.

COMMERCIAL INLAND MARINE
CM 99 12 12 23

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CM 99 12 12 23 © Insurance Services Office, Inc., 2022 Page 1 of 1

EXCLUSION OF LOSS DUE TO VIRUS OR BACTERIA

This endorsement modifies insurance provided under the following:

COMMERCIAL INLAND MARINE COVERAGE PART

A. The exclusion set forth in Paragraph B. applies to
all coverage under all forms and endorsements
that comprise this Coverage Part, including but not
limited to forms or endorsements that cover
property damage to buildings or personal property
and forms or endorsements that cover extra
expense.

B. We will not pay for loss or damage caused by or
resulting from any virus, bacterium or other
microorganism that induces or is capable of
inducing physical distress, illness or disease.

However, this exclusion does not apply to loss or
damage caused by or resulting from "fungi", wet
rot or dry rot.

C. The terms of the exclusion in Paragraph B., or the
inapplicability of this exclusion to a particular loss, do not serve to create coverage for any loss that
would otherwise be excluded under this Coverage
Part.

D. For the purpose of this endorsement, the following
definition is added:
"Fungi" means any type or form of fungus,
including mold or mildew and any mycotoxins,
spores, scents or by-products produced or
released by fungi.

Non-Reporting Endorsement
HBIS-1 (04-09)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement modifies insurance provided under the:

BUILDERS RISK COVERAGE FORM

Section E. ADDITIONAL CONDITIONS is amended as follows:

1. Paragraph e. of Additional Condition 3. When Coverage Begins And Ends is replaced by the following:
e. Upon expiration of the policy.

2. Additional Condition 4. Reporting Provisions is replaced by the following:

4. Reporting Provisions
a. The premium charged is fully earned and no refund is due to you when coverage ends. b. You will keep accurate construction records regarding property we cover under this policy. This includes the “total estimated completed value” of the property and a record of all contracts of sale dealing with the property.

3. Additional Condition 7. Coinsurance is replaced by the following:

7. Coinsurance
If the limit of insurance is less than the “total estimated completed value” of the property insured, you will bear a portion of any loss. The amount we will pay is determined by the following steps:
a. Divide the limit of insurance by the “total estimated completed value” of the Covered Property; b. Multiply the total amount of the covered loss, before the application of any deductible, by the percentage determined in paragraph a.;
c. Subtract the deductible from the figure determined in paragraph b.

Example No 1.
(This example assumes there is no penalty for underinsurance.) Deductible $1,000
Reported value
$100,000
“Total Completed Estimated Value” $100,000
Amount of loss or damage $60,000
a. Limit of Insurance/Total Estimated Completed Value
$100,000/$100,000 = 1.00
b. Amount of loss x percentage in A
$60,000 x 1.00 = $60,000
c. Deductible amount subtracted from results in B

HBIS-1 (04-09)

Includes copyrighted material of Insurance Services Office, Inc., with its permission. $60,000 - $1,000 = $59,000
Total amount of loss payable = $59,000
Example No. 2
(This example assumes there is a penalty for underinsurance.) Deductible $1,000
Limit of Insurance $100,000
“Total Completed Estimated Value” $120,000
Amount of loss $60,000
a. Limit of Insurance/Total Estimated Completed Value
$100,000/$120,000 = .833
b. Amount of loss x percentage in A
$60,000 x .833 = $49,980
c. Deductible amount subtracted from results in B
$49,980 - $1,000 = $48,980
Total amount of loss payable = $48,980

All other terms, conditions, provisions and exclusions of the policy remain the same.

HBIS-83 (06-17)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

Changes In Cancellation Condition

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement modifies insurance provided under the:

Builders Risk Coverage Form
Common Policy Conditions

Section A. Cancellation, Paragraph 5. is replaced with the following:

The premium for this coverage is fully earned and no refund is due when the policy is cancelled.

All other terms, conditions, provisions and exclusions of the policy remain the same.

Changes In Valuation Condition
HBIS-84 (04-09)

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement modifies insurance provided under the:

BUILDERS RISK COVERAGE FORM

The Valuation General Condition in Commercial Inland Marine Conditions is replaced by the following:

Valuation
In the event of loss or damage, the value of the property will be determined as of the time of the loss or damage .

1. The value of the property will not be more than the amount necessary to replace the structure or repair the structure, whichever is less, to the same point of completion that had been achieved immediately before the loss or damage .

2. If the loss or damage involves building materials which have not been installed, the value of the property will not be more than the amount necessary to replace the materials with like kind and quality.

All other terms, conditions, provisions and exclusions of the policy remain the same.

U-GU-630-E CW (01/20)
Copyright © 2020 Zurich American Insurance Company Page 1 of 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission.

Insured Name:

Policy Number:

Effective Date:

THIS DISCLOSURE IS ATTACHED TO AND MADE PART OF YOUR POLICY.

DISCLOSURE OF IMPORTANT INFORMATION

RELATING TO TERRORISM RISK INSURANCE ACT
SCHEDULE*
Premium attributable to risk of loss from certified acts of terrorism for lines of insurance subject to TRIA:
$0
*Any information required to complete this Schedule, if not shown above, will be shown in the Declarations.

A. Disclosure of Premium
In accordance with the federal Terrorism Risk Insur ance Act (“TRIA”), as amended, we are required to p rovide you with a notice disclosing the portion of your premiu m, if any, attributable to the risk of loss from te rrorist acts certified under that Act for lines subject to TRIA. That port ion of premium attributable is shown in the Schedul e above. The premium shown in the Schedule above is subject to a djustment upon premium audit, if applicable.

B. Disclosure of Federal Participation in Payment o f Terrorism Losses You should know that where coverage is provided by this policy for losses resulting from certified act s of terrorism, the United States Government may pay up to 80% of insur ed losses exceeding the statutorily established ded uctible paid by the insurance company providing the coverage.

C. Disclosure of $100 Billion Cap on All Insurer an d Federal Obligations If aggregate insured losses attributable to terrori st acts certified under TRIA exceed $100 billion in a calendar year (January 1 through December 31) and an insurer has met its deductible under the program, that insurer shall not be liable for the payment of any portion of the amount of such losses that exceeds $100 billion, and in s uch case insured losses up to that amount are subject to pro rata al location in accordance with procedures established by the Secretary of Treasury.

D. Availability
As required by TRIA, we have made available to you for lines subject to TRIA coverage for losses resul ting from acts of terrorism certified under TRIA with terms, amoun ts and limitations that do not differ materially fr om those for losses arising from events other than acts of terrorism.

E. Definition of Act of Terrorism under TRIA
TRIA defines "act of terrorism" as any act that is certified by the Secretary of the Treasury, in acco rdance with the provisions of the federal Terrorism Risk Insurance Act (“TRIA”), to be an act of terrorism. The Terror ism Risk Insurance Act provides that the Secretary of Treasu ry shall certify an act of terrorism:

1. To be an act of terrorism;

2. To be a violent act or an act that is dangerous t o human life, property or infrastructure;

3. To have resulted in damage within the United State s, or outside of the United States in the case of a n air carrier (as defined in section 40102 of Title 49, United St ates Code) or a United States flag vessel (or a ves sel based principally in the United States, on which United S tates income tax is paid and whose insurance covera ge is subject to regulation in the United States), or the premises of a United States mission; and

4. To have been committed by an individual or individ uals as part of an effort to coerce the civilian po pulation of the United States or to influence the policy or affect the conduct of the United States Government by coercion.

U-GU-630-E CW (01/20)
Copyright © 2020 Zurich American Insurance Company Page 2 of 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission.

No act may be certified as an act of terrorism if t he act is committed as part of the course of a war declared by Congress (except for workers’ compensation) or if losses resulting from the act, in the aggregate for insurance subject to TRIA, do not exceed $5,000,000.

Copyright © 2015 Zurich American Insurance Company U-GU-767-B CW (01/15) Includes copyrighted material of Insurance Service s Office, Inc., with its permission. Page 1 of 1

CAP ON LOSSES FROM CERTIFIED ACTS OF

TERRORISM
Insureds Name Policy Number Effective
Date
Endorsement
Number

THIS ENDORSEMENT CHANGES YOUR POLICY. PLEASE READ IT CAREFULLY.

This endorsement modifies your insurance:

COMMERCIAL INLAND MARINE COVERAGE PART

A. Cap on Losses From Certified Terrorism Losses
“Certified act of terrorism” means an act that is c ertified by the Secretary of the Treasury, in accor dance with provisions of the federal Terrorism Risk Insurance Act (“TRIA”), to be an act of terrorism. The Terror ism Risk Insurance Act provides that the Secretary of Treasury shall certify an act of terrorism:

1. To be an act of terrorism;

2. To be a violent act or an act that is dangerous to human life, property or infrastructure;

3. To have resulted in damage within the United State s, or outside of the United States in the case of a n air carrier (as defined in section 40102 of Title 49, United States Code) or a United States flag vessel (or a vessel based principally in the United States, on which Un ited States income tax is paid and whose insurance coverage is subject to regulation in the United States), or the premises of a United States mission; and

4. To have been committed by an individual or indivi duals as part of an effort to coerce the civilian p opulation of the United States or to influence the policy or affect the conduct of the United States Government by coercion.

No act may be certified as an act of terrorism if t he act is committed as part of the course of a war declared by Congress (except for workers’ compensation) or if l osses resulting from the act, in the aggregate for insurance subject to TRIA, do not exceed $5,000,000.

If aggregate insured losses attributable to one or more "certified acts of terrorism" exceed $100 bill ion in a calendar year (January 1 through December 31) and w e have met our insurer deductible under the Terrori sm Risk Insurance Act, we shall not be liable for the payment of any portion of the amount of such losses that exceeds $100 billion, and in such case insured loss es up to that amount are subject to pro rata alloca tion in accordance with procedures established by the Secretary of Treasury.

B. Application of Other Exclusions
The terms and limitations of a terrorism exclusion or any other exclusion, or the inapplicability or o mission of a terrorism exclusion or any other exclusion, do not serve to create coverage which would otherwise be e xcluded, limited or restricted under this policy.

IL 00 03 09 08

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

IL 00 03 09 08 © ISO Properties, Inc., 2007 Page 1 of 1

Wolters Kluwer Financial Services | Uniform Forms TM

CALCULATION OF PREMIUM

This endorsement modifies insurance provided under the following:

CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PAR T

COMMERCIAL AUTOMOBILE COVERAGE PART

COMMERCIAL GENERAL LIABILITY COVERAGE PART

COMMERCIAL INLAND MARINE COVERAGE PART

COMMERCIAL PROPERTY COVERAGE PART

CRIME AND FIDELITY COVERAGE PART

EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PAR T

EQUIPMENT BREAKDOWN COVERAGE PART

FARM COVERAGE PART

LIQUOR LIABILITY COVERAGE PART

MEDICAL PROFESSIONAL LIABILITY COVERAGE PART

OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAG E PART

POLLUTION LIABILITY COVERAGE PART

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PA RT

RAILROAD PROTECTIVE LIABILITY COVERAGE PART

The following is added:

The premium shown in the Declarations was com-
puted based on rates in effect at the time the poli cy
was issued. On each renewal, continuation, or anni-
versary of the effective date of this policy, we wi ll
compute the premium in accordance with our rates
and rules then in effect.

CM 00 01 09 04 Copyright, ISO Properties, Inc., 2003 Page 1 of 3

UNIFORM

COMMERCIAL INLAND MARINE
CM 00 01 09 04

COMMERCIAL INLAND MARINE CONDITIONS

The following conditions apply in addition to the
Common Policy Conditions and applicable Additional
Conditions in Commercial Inland Marine Coverage
Forms:

LOSS CONDITIONS
A. Abandonment
There can be no abandonment of any property to
us.

B. Appraisal
If we and you disagree on the value of the prop-
erty or the amount of loss, either may make writ-
ten demand for an appraisal of the loss. In this
event, each party will select a competent and im-
partial appraiser. The two appraisers will select
an umpire. If they cannot agree, either may re-
quest that selection be made by a judge of a court
having jurisdiction. The appraisers will state sepa-
rately the value of the property and amount of
loss. If they fail to agree, they will submit their
differences to the umpire. A decision agreed to by
any two will be binding. Each party will:

1. Pay its chosen appraiser; and

2. Bear the other expenses of the appraisal and
umpire equally.

If there is an appraisal, we will still retain our right to deny the claim.

C. Duties In The Event Of Loss
You must see that the following are done in the
event of loss or damage to Covered Property:

1. Notify the police if a law may have been bro-
ken.

2. Give us prompt notice of the loss or damage.

Include a description of the property involved.

3. As soon as possible, give us a description of
how, when and where the loss or damage oc-
curred.

4. Take all reasonable steps to protect the Cov-
ered Property from further damage, and keep
a record of your expenses necessary to pro-
tect the Covered Property, for consideration
in the settlement of the claim. This will not in-
crease the Limit of Insurance. However, we
will not pay for any subsequent loss or dam-
age resulting from a cause of loss that is not
a Covered Cause of Loss. Also, if feasible,
set the damaged property aside and in the
best possible order for examination.

5. You will not, except at your own cost, volun-
tarily make a payment, assume any obliga-
tion, or incur any expense without our con-
sent.

6. As often as may be reasonably required,
permit us to inspect the property proving the
loss or damage and examine your books and
records.

Also permit us to take samples of damaged
and undamaged property for inspection, test-
ing and analysis, and permit us to make cop-
ies from your books and records.

7. We may examine any insured under oath,
while not in the presence of any other insured
and at such times as may be reasonably re-
quired, about any matter relating to this insur-
ance or the claim, including an insured's
books and records. In the event of an exami-
nation, an insured's answers must be signed.

8. Send us a signed, sworn proof of loss con-
taining the information we request to settle
the claim. You must do this within 60 days
after our request. We will supply you with the
necessary forms.

9. Immediately send us copies of any demands,
notices, summonses or legal papers received
in connection with the claim or suit.

10. Cooperate with us in the investigation or set-
tlement of the claim.

D. Insurance Under Two Or More Coverages
If two or more of this policy's coverages apply to
the same loss or damage, we will not pay more
than the actual amount of the loss or damage.

E. Loss Payment

1. We will give notice of our intentions within 30
days after we receive the sworn proof of loss.

2. We will not pay you more than your financial
interest in the Covered Property.

3. We may adjust losses with the owners of lost
or damaged property if other than you. If we
pay the owners, such payments will satisfy
your claim against us for the owners' prop-
erty. We will not pay the owners more than
their financial interest in the Covered Prop-
erty.

4. We may elect to defend you against suits
arising from claims of owners of property. We
will do this at our expense.

5. We will pay for covered loss or damage within
30 days after we receive the sworn proof of
loss if you have complied with all the terms of
this Coverage Part and:
a. We have reached agreement with you on
the amount of the loss; or
b. An appraisal award has been made.

6. We will not be liable for any part of a loss that
has been paid or made good by others.

F. Other Insurance

1. You may have other insurance subject to the
same plan, terms, conditions and provisions
as the insurance under this Coverage Part. If
you do, we will pay our share of the covered
loss or damage. Our share is the proportion
that the applicable Limit of Insurance under
this Coverage Part bears to the Limits of In-
surance of all insurance covering on the
same basis.

2. If there is other insurance covering the same
loss or damage, other than that described in

1. above, we will pay only for the amount of
covered loss or damage in excess of the
amount due from that other insurance,
whether you can collect on it or not. But we
will not pay more than the applicable Limit of
Insurance.

G. Pair, Sets Or Parts

1. Pair Or Set
In case of loss or damage to any part of a pair
or set we may:
a. Repair or replace any part to restore the
pair or set to its value before the loss or
damage; or
b. Pay the difference between the value of
the pair or set before and after the loss or
damage.

2. Parts
In case of loss or damage to any part of Cov-
ered Property consisting of several parts
when complete, we will only pay for the value
of the lost or damaged part.

H. Recovered Property
If either you or we recover any property after loss
settlement, that party must give the other prompt
notice. At your option, the property will be re-
turned to you. You must then return to us the
amount we paid to you for the property. We will
pay recovery expenses and the expenses to re-
pair the recovered property, subject to the Limit of
Insurance.

I. Reinstatement Of Limit After Loss
The Limit of Insurance will not be reduced by the
payment of any claim, ex cept for total loss or
damage of a scheduled item, in which event we
will refund the unearned premium on that item.

J. Transfer Of Rights Of Recovery Against Oth-
ers To Us
If any person or organization to or for whom we
make payment under this Coverage Part has
rights to recover damages from another, those
rights are transferred to us to the extent of our
payment. That person or organization must do
everything necessary to secure our rights and
must do nothing after loss to impair them. But you
may waive your rights against another party in
writing:

1. Prior to a loss to your Covered Property.

2. After a loss to your Covered Property only if,
at time of loss, that party is one of the follow-
ing:
a. Someone insured by this insurance; or
b. A business firm:
(1) Owned or controlled by you; or
(2) That owns or controls you.

This will not restrict your insurance.

GENERAL CONDITIONS
A. Concealment, Misrepresentation Or Fraud
This Coverage Part is void in any case of fraud,
intentional concealment or misrepresentation of a
material fact, by you or any other insured, at any
time, concerning:

1. This Coverage Part;

2. The Covered Property;

3. Your interest in the Covered Property; or

4. A claim under this Coverage Part.

B. Control Of Property
Any act or neglect of any person other than you
beyond your direction or control will not affect this
insurance.

The breach of any condition of this Coverage Part
at any one or more locations will not affect cover-
age at any location where, at the time of loss or
damage, the breach of condition does not exist.

C. Legal Action Against Us
No one may bring a legal action against us under
this Coverage Part unless:

1. There has been full compliance with all the
terms of this Coverage Part; and

2. The action is brought within 2 years after you
first have knowledge of the direct loss or
damage.

D. No Benefit To Bailee
No person or organization, other than you, having
custody of Covered Property will benefit from this
insurance.

E. Policy Period, Coverage Territory
We cover loss or damage commencing:

1. During the policy period shown in the Decla-
rations; and

2. Within the coverage territory.

F. Valuation
The value of property will be the least of the fol-
lowing amounts:

1. The actual cash value of that property;
CM 00 01 09 04 Copyright, ISO Properties, Inc., 2003 Page 3 of 3

2. The cost of reasonably restoring that property
to its condition immediately before loss or
damage; or

3. The cost of replacing that property with sub-
stantially identical property.

In the event of loss or damage, the value of prop-
erty will be determined as of the time of loss or
damage.

IL 01 04 07 20

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

IL 01 04 07 20 © Insurance Services Office, Inc., 2020 Page 1 of 2 Wolters Kluwer | Uniform Forms

CALIFORNIA CHANGES

This endorsement modifies insurance provided under the following:

COMMERCIAL INLAND MARINE COVERAGE PART

COMMERCIAL PROPERTY COVERAGE PART

EQUIPMENT BREAKDOWN COVERAGE PART
FARM COVERAGE PART – FARM PROPERTY – OTHER FARM PRO VISIONS FORM – ADDITIONAL

COVERAGES, CONDITIONS, DEFINITIONS
FARM COVERAGE PART – LIVESTOCK COVERAGE FORM
FARM COVERAGE PART – MOBILE AGRICULTURAL MACHINERY AND EQUIPMENT COVERAGE FORM

STANDARD PROPERTY POLICY

A. When this endorsement is attached to the
Standard Property Policy CP 00 99 the term
Coverage Part in this endorsement is replaced by
the term Policy.

B. The Concealment, Misrepresentation Or Fraud
Condition is replaced by the following with respect
to loss ("loss") or damage caused by fire:

We do not provide coverage to the insured
("insured") who, whether before or after a loss
("loss"), has committed fraud or intentionally
concealed or misrepresented any material fact or
circumstance concerning:

1. This Coverage Part;

2. The Covered Property;

3. That insured's ("insured's") interest in the
Covered Property; or

4. A claim under this Coverage Part or Coverage
Form.

C. The Concealment, Misrepresentation Or Fraud
Condition is replaced by the following with respect
to loss ("loss") or damage caused by a Covered
Cause of Loss other than fire:

This Coverage Part is void if any insured
("insured"), whether before or after a loss ("loss" ),
has committed fraud or intentionally concealed or
misrepresented any material fact or circumstance
concerning:

1. This Coverage Part;

2. The Covered Property;

3. An insured's ("insured's") interest in the
Covered Property; or

4. A claim under this Coverage Part or Coverage
Form.

D. Except as provided in E., the Appraisal Condition
is replaced by the following:

If we and you disagree on the value of the
property or the actual cash value or the amount of
loss ("loss"), either may make written request for
an appraisal of the loss ("loss"). In this event, e ach party will select a competent and impartial
appraiser. However, in the event of a government-
declared disaster, as defined in the Government
Code, appraisal may be requested by either you or
us but shall not be compelled. Each party shall
notify the other of the appraiser selected within 2 0
days of the request. The two appraisers will select
an umpire. If they cannot agree within 15 days,
either may request that selection be made by a
judge of a court having jurisdiction. The appraiser s
will state separately the value of the property and
actual cash value and amount of loss ("loss"). If
they fail to agree, they will submit their differen ces to the umpire. A decision agreed to by any two will
set the amount of actual cash value and loss
("loss") and will be binding. Each party will:

1. Pay its chosen appraiser; and

2. Bear the other expenses of the appraisal and
umpire equally.

If there is an appraisal, we will still retain our right to deny the claim.

E. The Appraisal Condition in:

1. Business Income (And Extra Expense)
Coverage Form CP 00 30; and

2. Business Income (Without Extra Expense)
Coverage Form CP 00 32;
is replaced by the following:

If we and you disagree on the amount of Net
Income and operating expense or the amount of
loss, either may make written request for an
appraisal of the loss. If the request is accepted,
each party will select a competent and impartial
appraiser. Each party shall notify the other of the
appraiser selected within 20 days of the request.

The two appraisers will select an umpire. If they
cannot agree within 15 days, either may request
that selection be made by a judge of a court
having jurisdiction. The appraisers will state
separately the amount of Net Income and
operating expense or amount of loss. If they fail t o
agree, they will submit their differences to the
umpire. A decision agreed to by any two will be
binding. Each party will:
a. Pay its chosen appraiser; and
b. Bear the other expenses of the appraisal and
umpire equally.

If there is an appraisal, we will still retain our right to deny the claim.

IL 01 02 02 20

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

IL 01 02 02 20 © Insurance Services Office, Inc., 2019 Page 1 of 1 Wolters Kluwer | Uniform Forms
CALIFORNIA CHANGES – ACTUAL CASH VALUE

This endorsement modifies insurance provided under the following:

CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PAR T

COMMERCIAL INLAND MARINE COVERAGE PART

COMMERCIAL PROPERTY COVERAGE PART

FARM COVERAGE PART

STANDARD PROPERTY POLICY

With respect to an "open policy", the following are
added to any provision which uses the term actual
cash value:

A. In the event of a partial or total loss to a buildi ng or structure, actual cash value is calculated as the
lesser of the following:

1. The amount it would cost to repair, rebuild or
replace the property less a fair and reasonable
deduction for physical depreciation of the
components of the building or structure that are
normally subject to repair or replacement
during its useful life. Physical depreciation is
based upon the condition of the property at the
time of the loss; or

2. The Limit of Insurance applicable to the
property.

B. In the event of a partial or total loss to Covered
Property other than a building or structure, actual
cash value is calculated as the lesser of the
following:

1. The amount it would cost to repair or replace
the property less a fair and reasonable
deduction for physical depreciation, based on
the condition of the property at the time of loss;
or

2. The Limit of Insurance applicable to the
property.

C. An "open policy" is a policy under which the value
of Covered Property is not fixed at policy
inception, but is determined at the time of loss in
accordance with policy provisions on valuation.

The term "open policy" does not apply to Covered
Property that is subject to an Agreed Value clause
or similar clause that establishes an agreed value
prior to loss, unless such clause has expired.

IL 00 17 11 98 Copyright, Insurance Services Office, Inc., 1998

COMMON POLICY CONDITIONS
All Coverage Parts included in this policy are subject to the following conditions.

A. Cancellation

1. The first Named Insured shown in the Declara-
tions may cancel this policy by mailing or deliv-
ering to us advance written notice of cancella-
tion.

2. We may cancel this policy by mailing or deliv-
ering to the first Named Insured written notice
of cancellation at least:
a. 10 days before the effective date of cancel-
lation if we cancel for nonpayment of pre-
mium; or
b. 30 days before the effective date of cancel-
lation if we cancel for any other reason.

3. We will mail or deliver our notice to the first
Named Insured's last mailing address known
to us.

4. Notice of cancellation will state the effective
date of cancellation. The policy period will end
on that date.

5. If this policy is cancelled, we will send the first
Named Insured any premium refund due. If we
cancel, the refund will be pro rata. If the first
Named Insured cancels, the refund may be less
than pro rata. The cancellation will be effective
even if we have not made or offered a refund.

6. If notice is mailed, proof of mailing will be suffi- cient proof of notice.

B. Changes
This policy contains all the agreements between
you and us concerning the insurance afforded. The
first Named Insured shown in the Declarations is
authorized to make changes in the terms of this
policy with our consent. This policy's terms can be
amended or waived only by endorsement issued by
us and made a part of this policy.

C. Examination Of Your Books And Records
We may examine and audit your books and
records as they relate to this policy at any time dur-
ing the policy period and up to three years afterward.
a. Are safe or healthful; or
b. Comply with laws, regulations, codes or
standards.

3. Paragraphs 1. and 2. of this condition apply not
only to us, but also to any rating, advisory, rate
service or similar organization which makes in-
surance inspections, surveys, reports or rec-
ommendations.

4. Paragraph 2. of this condition does not apply to
any inspections, surveys, reports or recommen-
dations we may make relative to certification,
under state or municipal statutes, ordinances
or regulations, of boilers, pressure vessels or
elevators.

E. Premiums
The first Named Insured shown in the Declarations:

1. Is responsible for the payment of all premiums;
and

2. Will be the payee for any return premiums we
pay.

D. Inspections And Surveys

1. We have the right to:
a. Make inspections and surveys at any time;
b. Give you reports on the conditions we find;
and
c. Recommend changes.

2. We are not obligated to make any inspections,
surveys, reports or recommendations and any
such actions we do undertake relate only to
insurability and the premiums to be charged.

We do not make safety inspections. We do not
undertake to perform the duty of any person or
organization to provide for the health or safety
of workers or the public. And we do not warrant
that conditions:
.

IL 00 17 11 98 Copyright, Insurance Services Office, Inc., 1998

F. Transfer Of Your Rights And Duties Under This
Policy
Your rights and duties under this policy may not be
transferred without our written consent except in the
case of death of an individual named insured.

If you die, your rights and duties will be transferred
to your legal representative but only while acting
within the scope of duties as your legal represen-
tative. Until your legal representative is appointed,
anyone having proper temporary custody of your
property will have your rights and duties but only with respect to that property.

IL 02 70 07 20

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

IL 02 70 07 20 © Insurance Services Office, Inc., 2020 Page 1 of 4 Wolters Kluwer | Uniform Forms
CALIFORNIA CHANGES – CANCELLATION

AND NONRENEWAL

This endorsement modifies insurance provided under the following:

CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PAR T

COMMERCIAL AUTOMOBILE COVERAGE PART

COMMERCIAL GENERAL LIABILITY COVERAGE PART

COMMERCIAL INLAND MARINE COVERAGE PART

COMMERCIAL PROPERTY COVERAGE PART

CRIME AND FIDELITY COVERAGE PART

EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PAR T

EQUIPMENT BREAKDOWN COVERAGE PART

FARM COVERAGE PART

LIQUOR LIABILITY COVERAGE PART

MEDICAL PROFESSIONAL LIABILITY COVERAGE PART

POLLUTION LIABILITY COVERAGE PART

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PA RT

A. Paragraphs 2. and 3. of the Cancellation
Common Policy Condition are replaced by the
following:

2. All Policies In Effect For 60 Days Or Less
If this policy has been in effect for 60 days or
less, and is not a renewal of a policy we have
previously issued, we may cancel this policy by
mailing or delivering to the first Named Insured,
at the mailing address shown in the policy, and
to the producer of record, advance written
notice of cancellation, stating the reason for
cancellation, at least:
a. 10 days before the effective date of
cancellation if we cancel for:
(1) Nonpayment of premium; or
(2) Discovery of fraud by:
(a) Any insured or his or her
representative in obtaining this
insurance; or
(b) You or your representative in
pursuing a claim under this policy.
b. 30 days before the effective date of
cancellation if we cancel for any other
reason.

3. All Policies In Effect For More Than 60 Days
a. If this policy has been in effect for more
than 60 days, or is a renewal of a policy we
issued, we may cancel this policy only upon
the occurrence, after the effective date of
the policy, of one or more of the following:
(1) Nonpayment of premium, including
payment due on a prior policy we issued
and due during the current policy term
covering the same risks.
(2) Discovery of fraud or material
misrepresentation by:
(a) Any insured or his or her
representative in obtaining this
insurance; or
(b) You or your representative in
pursuing a claim under this policy.
(3) A judgment by a court or an
administrative tribunal that you have
violated a California or Federal law,
having as one of its necessary elements
an act which materially increases any of
the risks insured against.

(4) Discovery of willful or grossly negligent
acts or omissions, or of any violations of
state laws or regulations establishing
safety standards, by you or your
representative, which materially
increase any of the risks insured
against.
(5) Failure by you or your representative to
implement reasonable loss control
requirements, agreed to by you as a
condition of policy issuance, or which
were conditions precedent to our use of
a particular rate or rating plan, if that
failure materially increases any of the
risks insured against.
(6) A determination by the Commissioner of
Insurance that the:
(a) Loss of, or changes in, our
reinsurance covering all or part of
the risk would threaten our financial
integrity or solvency; or
(b) Continuation of the policy coverage
would:
(i) Place us in violation of California
law or the laws of the state where
we are domiciled; or
(ii) Threaten our solvency.
(7) A change by you or your representative
in the activities or property of the
commercial or industrial enterprise,
which results in a materially added,
increased or changed risk, unless the
added, increased or changed risk is
included in the policy.
b. We will mail or deliver advance written
notice of cancellation, stating the reason for
cancellation, to the first Named Insured, at
the mailing address shown in the policy,
and to the producer of record, at least:
(1) 10 days before the effective date of
cancellation if we cancel for
nonpayment of premium or discovery of
fraud; or
(2) 30 days before the effective date of
cancellation if we cancel for any other
reason listed in Paragraph 3.a.

B. The following provision is added to the
Cancellation Common Policy Condition:

7. Residential Property
This provision applies to coverage on real
property which is used predominantly for
residential purposes and consisting of not more
than four dwelling units, and to coverage on
tenants' household personal property in a
residential unit, if such coverage is written
under one of the following:

Commercial Property Coverage Part
Farm Coverage Part – Farm Property – Farm
Dwellings, Appurtenant Structures And
Household Personal Property Coverage Form
a. If such coverage has been in effect for 60
days or less, and is not a renewal of
coverage we previously issued, we may
cancel this coverage for any reason, except
as provided in b. and c. below.
b. We may not cancel this policy solely
because the first Named Insured has:
(1) Accepted an offer of earthquake
coverage; or
(2) Cancelled or did not renew a policy
issued by the California Earthquake
Authority (CEA) that included an
earthquake policy premium surcharge.

However, we shall cancel this policy if the
first Named Insured has accepted a new or
renewal policy issued by the CEA that
includes an earthquake policy premium
surcharge but fails to pay the earthquake
policy premium surcharge authorized by the
CEA.
c. We may not cancel such coverage solely
because corrosive soil conditions exist on
the premises. This restriction (c.) applies
only if coverage is subject to one of the
following, which exclude loss or damage
caused by or resulting from corrosive soil
conditions:
(1) Commercial Property Coverage Part –
Causes Of Loss – Special Form; or
(2) Farm Coverage Part – Causes Of Loss
Form – Farm Property, Paragraph D.

Covered Causes Of Loss – Special.

IL 02 70 07 20 © Insurance Services Office, Inc., 2020 Page 3 of 4

d. If a state of emergency under California
Law is declared and the residential property
is located in any ZIP Code within or
adjacent to the fire perimeter, as
determined by California Law, we may not
cancel this policy for one year, beginning
from the date the state of emergency is
declared, solely because the dwelling or
other structure is located in an area in
which a wildfire has occurred. However, we
may cancel:
(1) When you have not paid the premium,
at any time by letting you know at least
10 days before the date cancellation
takes effect;
(2) If willful or grossly negligent acts or
omissions by the Named Insured, or his
or her representatives, are discovered
that materially increase any of the risks
insured against; or
(3) If there are physical changes in the
property insured against, beyond the
catastrophe-damaged condition of the
structures and surface landscape, which
result in the property becoming
uninsurable.

C. The following is added and supersedes any
provisions to the contrary:

Nonrenewal

1. Subject to the provisions of Paragraphs C.2.
and C.3. below, if we elect not to renew this
policy, we will mail or deliver written notice,
stating the reason for nonrenewal, to the first
Named Insured shown in the Declarations, and
to the producer of record, at least 60 days, but
not more than 120 days, before the expiration
or anniversary date.

We will mail or deliver our notice to the first
Named Insured, and to the producer of record,
at the mailing address shown in the policy.

2. Residential Property
This provision applies to coverage on real
property used predominantly for residential
purposes and consisting of not more than four
dwelling units, and to coverage on tenants'
household property contained in a residential
unit, if such coverage is written under one of
the following:

Commercial Property Coverage Part
Farm Coverage Part – Farm Property – Farm
Dwellings, Appurtenant Structures And
Household Personal Property Coverage Form
a. If this policy provides coverage as
described in the preceding paragraph, and
we elect not to renew this policy, we will
mail or deliver written notice, stating the
reason for nonrenewal, to the first Named
Insured shown in the Declarations, and to
the producer of record, at the mailing
address shown in the policy, at least 75
days, but not more than 120 days, before
the expiration or anniversary date.

If we fail to give the first Named Insured
shown in the Declarations notice of
nonrenewal at least 75 days prior to the
policy expiration, as required in the
paragraph above, this policy, with no
change in its terms and conditions, shall
remain in effect for 75 days from the date
that the notice of nonrenewal is delivered or
mailed to the Named Insured. A notice to
this effect shall be provided by us to the first
Named Insured with the notice of
nonrenewal.
b. We may elect not to renew such coverage
for any reason, except as provided in
Paragraphs c., d. and e. below.
c. We will not refuse to renew such coverage
solely because the first Named Insured has
accepted an offer of earthquake coverage.

However, the following applies only to
insurers who are associate participating
insurers as established by Cal. Ins. Code
Section 10089.16. We may elect not to
renew such coverage after the first Named
Insured has accepted an offer of
earthquake coverage, if one or more of the
following reasons applies:
(1) The nonrenewal is based on sound
underwriting principles that relate to the
coverages provided by this policy and
that are consistent with the approved
rating plan and related documents filed
with the Department of Insurance as
required by existing law;

(2) The Commissioner of Insurance finds
that the exposure to potential losses will
threaten our solvency or place us in a
hazardous condition. A hazardous
condition includes, but is not limited to, a
condition in which we make claims
payments for losses resulting from an
earthquake that occurred within the
preceding two years and that required a
reduction in policyholder surplus of at
least 25% for payment of those claims;
or
(3) We have:
(a) Lost or experienced a substantial
reduction in the availability or scope
of reinsurance coverage; or
(b) Experienced a substantial increase
in the premium charged for
reinsurance coverage of our
residential property insurance
policies; and
the Commissioner has approved a plan
for the nonrenewals that is fair and
equitable, and that is responsive to the
changes in our reinsurance position.
d. We will not refuse to renew such coverage
solely because the first Named Insured has
cancelled or did not renew a policy, issued
by the California Earthquake Authority, that
included an earthquake policy premium
surcharge.
e. We will not refuse to renew such coverage
solely because corrosive soil conditions
exist on the premises. This restriction (e.)
applies only if coverage is subject to one of
the following, which exclude loss or
damage caused by or resulting from
corrosive soil conditions:
(1) Commercial Property Coverage Part –
Causes Of Loss – Special Form; or
(2) Farm Coverage Part – Causes Of Loss
Form – Farm Property, Paragraph D.

Covered Causes Of Loss – Special.
f. If a state of emergency under California
Law is declared and the residential property
is located in any ZIP Code within or
adjacent to the fire perimeter, as
determined by California Law, we may not
nonrenew this policy for one year,
beginning from the date the state of
emergency is declared, solely because the
dwelling or other structure is located in an
area in which a wildfire has occurred.

However, we may nonrenew:
(1) If willful or grossly negligent acts or
omissions by the Named Insured, or his
or her representatives, are discovered
that materially increase any of the risks
insured against;
(2) If losses unrelated to the postdisaster
loss condition of the property have
occurred that would collectively render
the risk ineligible for renewal; or
(3) If there are physical changes in the
property insured against, beyond the
catastrophe-damaged condition of the
structures and surface landscape, which
result in the property becoming
uninsurable.

3. We are not required to send notice of
nonrenewal in the following situations:
a. If the transfer or renewal of a policy, without
any changes in terms, conditions or rates,
is between us and a member of our
insurance group.
b. If the policy has been extended for 90 days
or less, provided that notice has been given
in accordance with Paragraph C.1.
c. If you have obtained replacement coverage,
or if the first Named Insured has agreed, in
writing, within 60 days of the termination of
the policy, to obtain that coverage.
d. If the policy is for a period of no more than
60 days and you are notified at the time of
issuance that it will not be renewed.
e. If the first Named Insured requests a
change in the terms or conditions or risks
covered by the policy within 60 days of the
end of the policy period.
f. If we have made a written offer to the first
Named Insured, in accordance with the
timeframes shown in Paragraph C.1., to
renew the policy under changed terms or
conditions or at an increased premium rate,
when the increase exceeds 25%.

1001NR (01-20)

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

Non-Renewal Notice

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ I T CAREFULLY.

This endorsement modifies insurance provided under the:

Builders Risk And Installation Coverage Form
Builders Risk Coverage Form
Marine Model Home Contents Coverage Form
Miscellaneous Property Coverage Form

Due to the specialized nature of the risk insured a nd the limited term of the coverage provided under this policy, it is agreed that this policy expires on date specified. A nonrenewal notice will not be sent to you. Any requests to extend the policy period must be made in writing prior to the expiration date. However, we have no obligation to extend the policy period.

All other terms, conditions, provisions and exclusions of this policy remain the same.

SANCTIONS EXCLUSION

ENDORSEMENT
U-GU-1191-A CW (03/15)

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ I T CAREFULLY

The following exclusion is added to the policy to which it is attached and supersedes any existing sanctions language in the policy, whether included in an Exclusion Section or otherwise:

SANCTIONS EXCLUSION
Notwithstanding any other terms under this policy, we shall not provide coverage nor will we make any payments or provide any service or benefit to any insured, beneficiary, or third party who may have any rights under this policy to the extent that such cover, payment, service, benefit, or any business or activity of the insured would violate any applicable trade or economic sanctions law or regulation.

The term policy may be comprised of common policy terms and conditions, the declarations, notices, schedule, coverage parts, insuring agreement, application, enrollment form, and endorsements or riders, if any, for each coverage provided. Policy may also be referred to as contract or agreement.

We may be referred to as insurer, underwriter, we, us, and our, or as otherwise defined in the policy, and shall mean the company providing the coverage.

Insured may be referred to as policyholder, named insured, covered person, additional insured or claimant, or as otherwise defined in the policy, and shall mean the party, person or entity having defined rights under the policy.

These definitions may be found in various parts of the policy and any applicable riders or endorsements.

ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAI N UNCHANGED