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HomeMy WebLinkAboutS03-Community Development I CfTYOF SAN BERNARDINO....: riEQ.UEST ~ COUNCIL ~CTION I ...,' ....,..' .' From: Kenneth J. Henderson, Di~ _Ar.lJll,Soom..,t: 1u-~AL '" SMM.L BUSDlESS l K t ~ 1:1. II"... 'tI1'r. LOAN l\GREDCENr IlE'IWEEH CITY Dept: Camlunity Develcpnent 1933 AUG -9 f!J, 2: 45 l\ND JlEN)y 1lQUIPMENl' 8MZB l\ND REH1'lWI, DC. Dete: August 9, 1989 Synopsis of Previous Council action: None Recommended motion: Adopt Resolution ~. Contact person: Ken Henderson Phone: 5065 Supporting deta attached: staff Report Ward: 4 FUNDING REQUIREMENTS: Amount: $50,000.00 Source: (Acct. No.) To Be Created (Acct. DescriPtion) EDP Loan F\lnj Finance: Council Notes: 75.0262 Agenda Item No. 5)-3 ., . CITY QF SAN BERNARDINO ,,- REQIJEST FOR COUNCIL ~TION . STAFF REPORT DescriDtion ot cmnr.m1 Ready Equipnent Sales am Rentals, Inc., is in the J:usiness of sales am rental of equipnent am machinery to hanec:Mners or to the overall oonst:ruction industry. '!be l'Y'OIt"'ny is organized as a Cal!tomia CoIJlOration with its principal offices located at 3969 North Sierra Way in San Bernardino. Having been established twenty-five (25) years ago, the CCllpanyhas undergone several transfoDllatians with respect to services am products offered, as well as cllan3'e of ownership. '!he current owners, each owning fifty percent (50%) of the CCllpany's stock, are Mr. Donald H. Tennissen am Mr. Clarles R. Piehler. Mr. Tennissen is also the current owner of three (3) self-service caJ:Washes. Mr. Piehler brings twenty-six (26) years of eJq:lerience in the equipnent rental J:usiness to the CCl1pany. His eJq:lerience ran;Jes fran that of ''yardnarVde1ivery man" to that of vice-president in charge of sales. His particular area of concentration has been within the construction iJnustry. 'll1e CCllpany has evolved fran a sales volume of $16,000.00 per Dalth with three (3) eIlployees to a current volume of $80,000.00 per Dalth am ten (lO) eIlployees. 'Ihis growth is attrib.tted to the ccupany's expansion into oonstruction equipnent rental am sales. COntinled expansion in the oonstruction field is anticipated at the current rate throughoot the next five (5) year period. '!his is based upcn the con- tinued econanic am pcpllation growth within the Inlam &pire. 'll1e CCllpany presently has one-h1.1rmed (100) c:pen acoamts with contractors, in:lustrial finns am the City of San Bernardino for use of heavy equipnent am machinery. ~t and PI.IrDose ot IDan '!he CCl1pany's current plans are to expan:i its facilities am product line. Prqlerty totalling 4.7 acres has been pll"Chased for this p.Irpose am is located at 550 West 40th street. '!be loan is being requested in the annmt of $50,000.00 for the p.Irpose of upgrading am renovating the facility currently located on the prqJerty am, also for street inprovementS, cums, gutters, lllOVing of two (2) telE!lilone poles am overall laro~in;J. '!he following is an awroxllnate use of fun:1s breakdown: Land and BuildiJq ZqlJ.'OVements: Oft-site ZqlJ.'OV_ts: Total ~t Required: llate and Tem $15,000.00 835.000.00 850.000.00 '!he $50,000.00 loan requested would be for a period of seven (7) years at an interest rate of eight percent (8%). 8/9/89 15.0264 - f:TJ:AFF REl'ORl' CJ:Ia'INUED... CPaqe -2- o o J Collateral Collateral will be provided by real estate located at 1990 Washing1:al street in Col1:al, ~ch currently has an a~roximate value of $500,000.00. '!be prqlerty is not erx:untlered by any liens. Job creation '!he catpany prcposes to create IJeb.-een six (6) ani ten (lO) new positions, with wages ranging fran $6.00 to $10.00 per halr, over a five (5) year period. tJraencv Clause The reason this it:.n was D1ace4 on the IIIlDDl_bl -m is t:M F.oontmIiC D817eJ...-..-.t P~"",.._ nr-it~- (BDPC) naulai; =---;;ti;;;; ...--,le was _rocerlv alicmed with the _ -- i~-- ._f.8ion aohedJ,l.. meanina anotber ~ (3) 1lUlta would --s beforec::: :: :: 4isbursec!. The financial JI884 of t:M loan -1l__ f (110M. and the BOlle reau.lar _f-. _'1. 1lAfI beeD cMnae4 ~ aile; for the ti-lv 4lIYe1oa'lIe"t of _11 J::wpf___ loan menda it~. R...............4ation '!he Econanic Develc:pnent P41.A:l1am o:mnittee (EDPC) has reviewed and evaluated this request for financial assistance. '!be EDPC took action rec:atlllleI'ld awroval. of this loan request to the Mayor ani Calm:ln Cooncil. I re....u.,.,.etXi ad~ion of the attached resolution. lOJf,/lab/3392 attadunents 8-9-89 18 19 20 21 22 23 24 25 26 27 28 IIII - C 1 ~ ~ 'I - - - o 0 RESOLUTION NUMBER ~ RESOLUTION OJ' THE CITY OJ' SAN BERNARDINO AUTHORIZING AKD DIRECTING THE EXECUTION OJ' A SMALL BUSINBSS LOAN AGREEMBNT BETWEEN THE CITY OF SAN BERNARDINO AND READY EQUIPMENT SALBS A1lD RENTALS, INC. 2 3 4 BE IT RESOLVED BY TD KAYOR AND COMMON COUNCIL OJ' '1'BB CITY 5 OJ' SAN BERNARDINO AS J'OLLOWSz 6 7 8 9 Seetion 1. (a) The Mayor of the City of San Bernardino is hereby authorized to execute, on behalf of the City of San Bernardino, a loan agreement with Ready Equipment Sales and Rentals, Inc., 10 which loan agreement is attached hereto as Exhibit "1" and is 11 incorporated herein by reference as though fully set forth at length. The agreement provides for the loaning of funds from the 12 13 small business loan program in the amount of $50,000.00. 14 (b) The authorizations to execute the above referenced 15 agreement is rescinded if the parties to the agreement fail to 16 execute same within sixty (60) days of the passage of this resolution. 17 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a day of meeting thereof, held on the , 1989, by the following vote to wit: IIII 8-9-89 1 12 Approved as to form and 13 legal content: 14 15 CITY ATTORNEY 16 KJH/lab/0681 17 attachment 8-9-89 18 19 20 21 22 23 24 25 26 27 28 8-9-89 2 - C 1 2 3 4 5 6 7 8 9 of 10 11 - - - - - RESOLUTION OF THE CITY or SAN BERNARDINO AUTHORIZING THB .~ EXECUTION OF A SMALL ~INES~AN AGREEMENT WITH ~ READY EQUIPMENT SALES~ RE~S, INC. AYES: Councilpersons NAYES: ABSENT: CITY CLERX The foregoing resolution is hereby approved this , 1988. day Mayor, city of San Bernardino - ~ - c BORROWER: .. -~ ..:. - - 4 fl: o J o , ,. CITY OF SAN BERNARDINO COMMUNITY DEVELOPMENT DEPARTMENT "Economic Development Program" (IDB Fee-Pinanced) Ready Equipment Sales and Rentals, Inc. PROJECT TITLE: Facilities and Product Line Expansion PROJECT ADDRESS: 3969 North Sierra Way San Bernardino, CA 92404 LOAN IS NUMBER CONTRACTS. OF COMMUNITY DEVELOPMENT KJH/lab/0256 8-9-89 EXHIBIT "1" - -- - c Section Number SECTION I S101. S102. S103. S104. S105. SECTION II S201. 5202. S203. S204. ..~ ~'.." - - 4- (!". J: TABLE OF ~ 2C!t 1191 1'i tle PARTIES, TERM, CONDITIONS PRECEDENT AND INDEPENDENT STATUS Parties to the Aqreement Representatives of the Parties and Service of Notices Term of this Agreement Conditions Precedent Independent Contractor Status of the Borrower PURPOSE OF AGREEMENT AND LOAN, LOAN TERMS, AND PROMISSORY NOTE Purpose of the Agreement Purpose of the Loan Terms of the Loan Promissory Note SECTION III REPRESENTATIONS AND COVENANTS OF BORROWER, AND DEFAULT S301. S302. S303. Representations of the Borrower Covenants of the Borrower Default S401. SECTION IV REPORTS, RECORDS AND AUDITS S402. S403. S404. Reportinq Requirements Maintenance of Records AUdits and Inspections validity of Financial Documentation SUbmissions i - bgt 4 4 4 5 6 7 8 10 10 11 11 - J 2 2 3 3 3 - _ J. o 5ection NUmber 5405. 5406. SECTION V 8501. 5502. 5503. 5504. 5505. 5506. 5507. 5508. 5509. 5510. 5511. 5512. 5513. 5514. 5515. S516. 8517. 8518. 5519. ~.)~ TABLE or CONTEQ cconO..) - 1lUll -- - tf:: Title iUA Release of Funds from Escrow 11 Reconveyance Fe. 12 GENERAL TERMS AND CONDITIONS Indemnification and Insurance Requirements Prohibition Against Assignment Limitation of Corporate Acts Amendments and Waivers 12 13 13 14 14 Compliance with statutes and Regulations Conflict of Interest 14 16 16 16 Political Activity Prohibited Lobbying Prohibited Installation of Financial Assistance Sign Press Releases 16 Discrimination Prohibited 16 Nondiscrimination, Equal Employment 17 Practices, and Affirmative Action Plan Employment Opportunities for Business 17 and Lower Income Persons Participation of Minorities, Women and 18 Small Businesses Captions 18 Effect of Legal JUdgment 18 Choice of Law Governing this Agreement 19 Prohibition of Legal Proceedings 19 Rights and Remedies 19 ii - o Oction NUmber SECTION VI S601. S602. KJH/lab/0257 ~p TAB~}OF CONTENTS ,,-., (Cont... ) :) r.. ,~.' Title ENTIRE AGREEMENT Complete Agreement Number of Page. and Attachment. Execution (Signature) Page ATTACHMENTS Attachment I -- Employment Action Plan Attachment II -- Insurance Requirements Hi b!a 19 19 19 o o ~j' AGREEMENT QBER 0 - (7; o BETWEEN THE CITY OF SAN BERNARDINO AND THE Ready Equipment Sales and Rentals. Inc. (RELATING TO) THE 'acilitiel and Product Line Expansion PROJECT ------------------------------------------------------------------- THIS City of San "City", and hereinafter AGREEMENT is made and entered into by and between the Bernardino, a municipal corporation, hereinafter call READv EQIJIPMF.NT SAT F.~ Awn RF.)lTAl ~ I TN~ called the "Borrower". , W~:rHI~il:rH WHEREAS, the City has entered into a Grant Agreement with the United States Department of Housing and Urban Development, hereinafter called the Grantor, pursuant to Title I of the Housing and Community Development Act of 1974, as amended, hereinafter referred to as HCDBG, to address the community development needs of the City: and WHEREAS, the Community Development Department, hereinafter called the "CDD", has been designated by the City to provide for proper planning, coordination and administration of the City's programs as described in the City's Grant Agreement with the Grantor, and of certain projects funded by the City: and WHEREAS, the CDD cooperates with private individuals and organizations, other agencies of the City and agencies of other governmental jurisdictions in carrying out certain functions and programs which are its responsibility; and WHEREAS, the Small Business Revolving Loan Fund program has been established by the City as part of a City of San Bernardino Economic Development Program ("EDP"), and has been approved by the San Bernardino Mayor and Common Council; and WHEREAS, the project which is the subject of this agreement meets the requirements of the above described program: and WHEREAS, Borrower has applied to the City for a loan to help finance the project; and WHEREAS, the City is Willing to lend monies to the Borrower on the terms and conditions set forth herein; NOW, THEREFORE, in consideration of and in reliance upon the foregoing and upon the covenants, agreements, representations and warranties herein contained, the City and the Borrower agree as follows: 1 ~ ,- --' J f'!:: o ,. ~ 19& II &q % o SECTION I. PARTIES. TERM. CONDITIONS PRECEDENT. AND INDEPENDENT STATUS SlOl. Parties to the Aareement. The partie. to thb Aqr..ment are: 1. The City of San Bernardino, a municipal corporation, havinq its principal office at 300 North "D" Street, Bernardino, California 92418. Mr. Donald Tuenissen and Mr. Charles R. Piehler The Borrower, DBA. Ready Equipment sales and Rentals Inc. having its principal address at 3969 North Sierra Way San Bernardino, CA 92404 Sa" 2. , . The Borrower is ( a) California Corporation (fictitious name enterprise, individual, California Corporation/qeneral partnership/limited partnership.) S102. ReDresentatives of the Parties and Service of Notices. The representatives of the respective parties who are authorized to administer this Aqreement and to whom formal notices, demands and communications shall be qiven are as fOllows: 1. The representative of the City shall be, unless other- wise stated in the Agreement: Kenneth J. Henderson, Director Community Development Department 300 North "D" Street, Fifth Floor San Bernardino, CA 92418 2. The representative of the Borrower shall be: D nald H. Tu nissen and Charles R. Piehler DBA. Ready EqUipment Sales and Renta s, Inc. 3969 North Sierra Way San Bernardino, CA 92404 3. Formal notices, demands and communications to be qiven hereunder by either party shall be made in writinq and may be effected by personal delivery or by registered or certified mail, postage prepaid, return receipt re- quested and shall be deemed communicated as of the date of mailinq. 4. If the name of the person desiqnated to receive the notices, demands or communications or the address of such person is chanqed, written notice shall be qiven, in accord with this section, within five (5) workinq 2 (2. JL. o o " days of said change9 ~ o o S103. Term of this Aareement. This Agr....nt shall re.ain in full fore. and .ffect fro. the date of execution by Borrow.r of the Promissory Note, until such time as said pro.issory Note is paid acCording to its terms, subj.ct to the provisions of S303 herein. S104. Conditions Pr.cedent:, A. Prior to the execution of this Agreement, the Borrower shall submit to the City for approval in writing an Affirmative Action Program Plan in accordance with Section 512 herein. B. In the event that Borrower is a corporation, then prior to the execution of this Agreement, the Borrower shall provide the City with copies of the following docuaents: 1. Borrower's Articles of Incorporation, and all amendments thereto, as filed with the Secretary of State. 2. Borrower's By-Laws, and all amendments thereto, as adopted by the Borrower and properly attested. 3. ReSOlutions or other corporate actions of the Borrower's Board of Directors, properly attested or certified, which specify the nameCs) of the person(s) authorized to obligate the Borrower and execute contractual documents. 4. Certificate of Good Standing from California Secretary of State. C. In the event that Borrower is a partnership, then prior to the execution of this Agreement, the Borrower shall provide the City with copies of the Borrower's Partnership Agree- ment, and evidence of filing thereof with appropriate filing official. . D. In the event the Borrower is an individual doing business under fictitious name, a copy of the Fictitious Name State- ment and evidence of the proper filing thereof. S105. Indenendent Contractor status of the Borrower. The parties agree that the Borrower is an independent contractor and that no employees of the Borrower have been, are, or shall be employees of the City by virtue of this Agreement, and the Borrower shall so inform each employee organization and each employee who is hired or retained by it. SECTION II. PURPOSE OF AGREEMENT AND LOAN, LOAN TERMS, AND PROMISSORY NOTE 3 ~ -.' J.I - J ~ '.' 52$(. o PurDose of the Aareement. o o ~~d Pn~~~cf:~- ~:- -~~~~- :~?:_~~~~~: _ ~~_ _:~ _ ~:_~~ ~~~__~~ ~:~ _ :~~~s~~ lars ($ 50,000.00 ) of EDP funds to be loaned by the City to the Borrower, hereinafter called the "Loan", for the purpose and under the terms and conditions set forth herein. 5202. Pumos. ot the Loan. The purpose of the Loan is to provide financial assistance to enable the Borrower to: 1. Land and Building Improvements: $15,000.00 2. Off-site Improvements: $35,000.00 $50,000.00 S203. Terms ot the Loan. A. The City aqrees to lend the Borrower, and the Borrower aqrees to borrow trom the City, an amount not to exceed Fifty Thousand and no/l00----------------_~~-~LrJURS, ($ 50,000.00), such transaction hereinatter referred to as the "Loan". The Loan is to be evidenced by, and made aqainst delivery of a Promissory Note executed by the Borrower, hereinafter called the "Note" and by this reference incorporated herein. B. The Note shall (a) be dated as of the closinq, (b) bear interest on the unpaid principal at the rate of Ei,ht percent ( 8% ) per annum, (c) be for a term of seven (7 ) years, and (d) provide for payment of the principal amount thereof and the interest thereon in eighty-four ( 84) equal monthly installments of seven hundred spvent&,nlne and.31/100------______________________________________________ LIJURS ($ 779.31 ), each includinq principal and interest, and continuinq until said principal and interest are paid in full. c. Each monthly installment shall be applied first to the 4 o ~ 0 payment of interest thQ accrug to the date the payment 1. received, and the balance, if any, to the reduction of the principal. <" ~.:.: ,. S204. PromissorY Note. A. The obligation of the City to make the Loan is subject to receipt by the City of the Note and, at the City's sole discretion, to the following additional conditions precedent: 1. The representations and warranties made herein by the Borrower shall be true and correct at the time of consideration by the Mayor and Common Council of the City of San Bernardino with the same effect as though made at the Closing. 2. Receipt by the City from the Borrower of all executed documents in connection with this Agreement; satiSfac- tory in form and substance to the City. 3. If matching funds constitute a part of this Agreement, then Borrower shall obtain matching funds in an amount equal to the amount of this loan and, as required by the City, deposit said matching funds into an account with N/A Escrow Agency. 4. The City and the Borrower have mutually agreed to the terms and conditions as set forth in the Employment Action Plan, which is attached hereto as Attachment I and by this reference is incorporated herein. B. The Note is to be secured as follows: Real Estate located at 1990 Washington Street, Colton, CA 92324, which currently has an appropriate value of $500,000.00. C. Borrower shall have the right, without penalty, to prepay the Note together with the accrued interest thereon as of the date of such prepayment. D. The Borrower acknowledges and agrees that the amount being provided under this loan shall be for a total of Fifty Thousand---------------u_____DOLLARS, ($ 50,000.00 ), and that no additional funds to cover additional projects costs, anticipated or unanticipated, incurred as a result of cost overruns or expenses in financing this project, are available under this Agreement. 5 t..' . ". ... c; SEOON III. o o o REPRESENTATIONS AND COVENANTS OF BORROWER. AND DEFAULT S301. ReDresentations of the Borrower. To induce City to enter into this Agreement, Borrower covenants and represents to City that: 1. The execution, delivery and pertonance ot the Note and this Agreement by Borrower have been duly authorized by Borrower. This Agreement constitutes a legal, valid and binding obligation of Borrower, enforceable in accordance with its terms. The execution and delivery of this Agreement and the note, and consummation of the transactions herein contemplated, will not conflict with, or result in a breach of, any of the terms, provisions or conditions of any indenture, contract, instrument or agreement, including any partnership agreement, to which Borrower or any of its officers is a party. No approval, consent or authorization ot any governmental authority is necessary for the execution, delivery or performance by the Borrower of this Agreement or of any of the terms and conditions. 2. Borrower has good and marketable title to the real property identified in S204B ot this Agreement, located at 1990 Washin ton Street, Colton, CA 92324 , San Bernard no, Cal forn a, and t s free and clear from all liens except as set forth herein: None . 3. Borrower is in compliance with all applicable statutes, laws, regulations, and executive orders ot the United States of America and all states, foreign countries, other governmental bodies and agencies having jurisdiction over its business or properties, including (without limitation) all tax laws and Borrower has not received notice ot any violation of such statutes, laws, regulations or orders which have not been remedied prior to the date ot this Agreement. Borrower possesses all licenses, tradenames, trademarks, and permits as are required for conduct ot its business without conflict with the rights of others. D. There is not pending or threatened against Borrower, or any of its officers, any actions, suits, proceedings or investi- gations at law or in equity or before or by any Federal, state, municipal or governmental department, commission, board, bureau, agency or instrumentality which, if deter- mined adversely, would be likely to have a materially adverse effect on the business or properties of Borrower. 6 - ~~ ~ () Each and every financia~tatem~, document and record c:> delivered by Borrower to the City in connection with this Agreement and the proposed transaction hereunder is a true and complete copy of .aid financial state.ent, docu.ent or record, and fairly and accurately reflects the information it purports to portray. There has been no change in the condition, financial or otherwise, of Borrower as shown in the financial .tatements dated December 31 1988 , except change. in the ordinary course of baaine.s, none of which, individually or in the aggregate, has been materially adverse. S302. Additional Covenants of the Borrower. Borrower Covenants and agrees that, from the date hereof, until payment in full on the Note and the interest thereon, that it will: 1. Pay the principal and interest on the Note according to its terms. 2. Pay any other amounts that may be due or become due and owing to the City under or pursuant to the terms of this Agreement or the Note. 3. Execute and deliver all instruments, and perform such acts, as the City may reasonably deem necessary or desireable to confirm and secure to the City all rights and remedies conferred upon the City by the terms of this Agreement and Note. 4. In the event that Borrower shall grant the City a se- curity interest in Real Property as collateral under S204B herein, then Borrower agrees to maintain at Borrower's sole expense a policy of title insurance coverage equal to the amount of the loan. 5. Give notice to the City of any event that constitute. an Event of Default as set forth in Section 303 of this Agreement or that would, with notice, or lapse of time or both, constitute an Event of Default under this Agreement. Notice shall specify the nature of such Event of Default. 6. Not enter into any agreement or other commitment the performance of which would constitute a breach of any of the covenants contained in this Agreement. 7. Use the Loan proceeds only for the purposes stated in this Agreement and for no other purpose or purposes. a. Observe all applicable federal, state and local statutes and regulations as well as City of San Bernardino ordinances as further defined and set forth in Section 505 of this Agreement. 7 I~: ..... - ~, r~~ o o o o 9. In the event that Borrower is a corporation, then Borrower shall do or cau.e to be done all thinq. neces- sary to preserve and keep in full force and .ffect it. corporate existence, rights and franchise.. 10. Not violate any laws, ordinances, governmental rules or requlations to which it i. .ubject and not fail to obtain any licen..., perait., franchi... or other governmental authorization nece..ary to conduct it. business, which violation or failure to obtain might have a material adverse effect on the business, pro- spects, profits or condition (financial or otherwise) of Borrower. 11. Submit an Annual Employment Report on or before the fifteenth (15th) day of June for the year(.) 1990 . The Annual Employment Report shall detail Borrower's compliance with the Employment Action Plan, Attachment I attached hereto and by thi. reference incorporated herein, for the preceding twelve (12) month period. 12. Maintain adequate insurance with respect to the col- lateral and the (proprietorship, partnership or cor- porate) business which is the subject of this Agreement, with reputable insurance companies. The Borrower shall maintain insurance in such amounts and against such risks as is customary with companies in the same or similar business; in addition, said insurance coverage(s) shall be in accordance with the general insurance provisions of this Agreement as specified in S501B.5, inclUding fire, hazard and general comprehensive liability insuranc., worker'. compensation, construction/rehabilitation liability, to protect such business and all property securing the City's loan. Said insurance shall be maintained throughout the term of this loan: The City shall be named as an additional insured, and the policy or POlicies shall not be subject to cancellation, reduction or nonrenewal without thirty (30) days prior written notification to the City Attorney by certified mail. 13. Pay all indebteness and obligations promptly in accord- ance with normal terms and promptly pay and discharge or cause to paid and discharged all taxes, assessments and governmental charges or levies imposed upon it or upon its income and profits or upon any of its property, real, personal or mixed, or upon any part thereof, respectively, before the same shall become in default. S303. Default. A. The entire unpaid principal of the Note, and interest then accrued thereon, shall become and be forthwith due and 8 L c @ - ~ - -. - 4 - payable upon written d~nd bY~e City or the City'. assign., without any other notice or demand of any kind or any presentment or prote.t, if anyone of the following event. (herein called an "Event of Default") shall occur and be continuing at the time of such demand, whether volun- tarily or involuntarily, or, without limitation, occurring or brought about by operation of law or pursuant to or in compliance with any jUdgaent, decree or order of any court of any order, rule or regulation or any govern.ental body, provided however that such sum shall not be payable if Borrower's payments have been expre.sly extended by the City or the City'S assigns. "Event. of Default" shall include: o 1. Payment of any installment of principal or interest on the Note is not paid when due and such payment remains unpaid for thirty (30) days. 2. Borrower fails to pay when due, or declared due, the obligations secured under this Agreement. 3. Borrower fails to perform or comply with any term., conditions, or covenants as provided in this Agreement or in any instruments securing or related to this Agreement. 4. If any representation or warranty made by the Borrower in this Agreement shall prove to be untrue in any material respect, or if any report, financial statement or financial schedule or other instrument delivered under or pursuant to this Agreement or the transactions contemplated herein, to the City or to any other holder of the Note shall prove to be untrue in any material respect as of the date as of which made. 5. A court enters a decree or order for relief in respect of the Borrower in an involuntary case under any appli- cable bankruptcy, insolvency or other similar law now or hereafter in effect, or appoints' a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Borrower or for any substantial part of its property, or orders the Winding up or liquidation of its affairs and such decree or order remains unstayed and in effect for a period of sixty (60) consecutive days. 6. The occurrence (i) of Borrower's becoming insolvent or bankrupt, or ceasing, being unable, or admitting in writing its inability to pay its debts as they mature, or making a general assignment for the benefit of, or entering into any composition or arrangement with creditors: (ii) of proceedings for the appointment of a receiver, trustee or liquidator of Debtor, or of a substantial part of its assets, being authorized or instituted by or against it: or (iii) of proceedings under any bankruptcy, reorganization, readjUstment of 9 /. ~ . " '. - - - c ~ -" o debt, insolvency, ~.Olut~, liquidation or other similar law of any jurisdiction being authorized or instituted by or against the Borrower. 7. A cessation or substantial reduction of operations in the business which is the subject of this Agreement under circumstances indicative to the City of a lack of intention or ability to provide continuing ..ployment and economic benefit. for the area in which the business is located. 8. Failure to submit the Annual Employment Report referred to in S302(12) within ninety (90) days of the scheduled due date for said Report. 9. The loss, theft, substantial damage, destruction, abandonment, sale or encumbrance to or of any of the collateral securing payment of the Note, in any manner not fully covered by insurance, or the making of any levy, seizure or attachment thereof or thereon. B. If Borrower shall at any time default in making any payment of principal or interest on the Note, Borrower shall to the full extent permitted by law, pay to the City or other holder of the Note, in addition to any other amounts that may be due from Borrower to such holder, an amount equal to the reasonable costs and expenses incurred by such holder, in its efforts to protect its collateral, secure payment, or otherwise defend its interests hereunder in any judicial or administrative proceeding. SECTION IV. REPORTS. RECORDS AND AUDITS S401. ReDortina Reauirements. A. At such times and in such forms as the City may require, there shall be furnished to the City such statements, records, reports, data and information as the City may request pertaining to matters covered by this Agreement. B. Borrower will provide its financial and accounting statements to the City for the period ending December 31. 1989 and annually thereafter during term of this Agreement, but not later than three (3) months following the expiration of any such period, and at each other time and in such form as the City may prescribe. S402. Maintenance of Records. A. Records, in their original form, shall be maintained in accordance with the requirements prescribed by the Grantor and the City with respect to all matters covered by this Agreement. Such records shall be retained for a period of 10 - - - - c ~ ~ \~. ,~. six (6) years after te~atio~f this Agreement and afte~ all other pending matters are closed. "Pending Matters" in- clude, but are not limited to, an audit, litigation, or other actions inVOlving record.. The City ..y, at it. discretion, take poss.ssion of and r.tain said r.cords. B. Records in their original form p.rtaining to matters cover.d by this Agr....nt shall at all tim.s be retained within the City of San Bernardino, or some other location specifically authorizing in writing by the Dir.ctor of Comaunity Development, unless authorization to remove them is granted in writing by the City. S403. Audits and Ins~ections. A. At any time during normal business hours and as often as the Grantor, the U.S. Comptroller General, AUditor General of the Stat. of California or the City may deem necessary, the Borrower shall make available to the City for .xamination, all of its records with resp.ct to all matt.rs covered by this Agreement. The City, Auditor General of the Stat. of california, Grantor, and the U.S. Comptroll.r General shall have the authority to audit, examine and make exc.rpts or transcripts from records, inclUding all contracts, invoices, materials, payrolls, records of personnel, conditions of employment and other data r.lating to all matters covered by this Agreement. B. The City shall have tha authority to make physical inspec- tions and to require such physical safeguarding devices as locks, alarms, safes, fire .xtinguishers, sprinkler system, etc., to safeguard property and/or equipment funded or secured by this Agreement. NotWithstanding such inspection authority, Borrower is soley responsible for the provision of security and for the safe guarding of the business and its property. S404, Validitv of Financial Documentation Submissions. Financial reports required to be prepared and submitted by the Borrower to the City shall be accurate and correct in all respects. S405. Release of Funds from Escrow. A. All loan proceeds shall be deposited into an escrow account with an escrow company designated by the City. DiSbursement of funds shall be jointly authorized by the Borrower and the City. Each disbursement shall be in accordance with S202 "Purpose of the Loan" and shall be properly supported by inVOices, vouchers, executed payrolls, time records or other documentation evidencing an expenditure and/or encumbrance of funds. 8. The costs associated with the loan such as escrow fees, 11 - ~ ,':'.~ J ~, . .' . ~ credit reports (TRW), Tftle Re~ts, or other si.ilar costs shall be delineated in the escrow instruction. and di.bur.ed from the loan proceeds upon opening of the escrow account. S406. Reconvevance Fee In the event that real property i. used to .ecure this Loan, then Borrower agree. to pay any co.t. incident to title reconveyance, including, if applicable, trustee'. fee., attorney fee., docuaent preparation fee., recording fees or any other related expenses. SECTION V. GENERAL TERMS AND CONDITIONS S50l. Indemnification and Insurance Reauirements. A. Indemnification: The Borrower undertake. and agrees to defend, indemnify and hold harmless the City and any and all of the City'. officer., agent., employee., assign., and .uccessor. in interest from and against all suit. and cause. of action, claims, cost of litigation, damage or liability of any nature whatsoever, for death or injury to any person, inclUding Borrower's employees and agents, or da.age or destruction to any property of either party hereto or third persons in any manner arising by reason of or incident to the performance of this Agreement on the part of the Borrower or sub borrower of any tier whether or not contributed to by any act or omission, active or passive, negligent or otherwise, except for the sole negligence of the City, or the sole negligence of any of the City's Officers, agents or employees. City approval of the Borrower's performance, or failure to object, shall be no defense to Borrower concerning its undertaking herein to defend and indemnify City and others~ B. Insurance: 1. The Borrower .hall provide and maintain at its own expense throughout the term of this agreement the insurance requirements specified herein. Evidence of insurance shall be submitted for approval by the City. The City special endorsement forms, referenced hereto and incorporated by reference, are the preferred form of evidence of insurance. Alternatively, Borrower may submit two (2) certified copies of the full policy containing the appropriate cancellation notice language and additional insured/loss payee language as specified. 2. No release of funds from the Escrow Account shall be made to the Borrower until such time as the Borrower has complied with all insurance and bonding requirements 12 . p, 0- o under this "Agreemeg. Th~ity's Ad:itiOna1 Insured () Endorsement form, or a form approved by the City, stating that the Borrower is so insured, must accompany any demand for funds unless said form has been pre viously submitted and approved by the city. (Certifica tion of insurance shall be procured, filed and approved in strict compliance with City rules and regulations.) 3. With respect to the interest. of the City, such in surance shall not be cancelled, reduced in coverage or limited or non-renewed, except after thirty (30) days written notice by receipted delivery has been given to the Office of the City Attorney, City Hall, 300 North "0" Street, San Bernardino, CA 92418. Policies of insurance and fidelity bonds, except for policies covering Worker's Compensation and Employees' and Volunteer's Owned and/or Leased Vehicles, shall name the city as an Additional Insured and said endorsements or other evidence of insurance shall so indicate. Fidelity bonds shall name the City as loss payee or additional insured. In the event of any cancellation, non-renewal, reduction or limitation of coverage, or notice that such will be effected, City may, but is not required to, obtain insurance to protect its interests, in which event the cost thereof shall be reimbursed by Borrower forthwith. Any failure to forthwith reimburse such expense shall constitute an Event of Default. Borrower shall also provide to City a list of all other addi- tional named insureds under the same policy of insur- ance. 4. The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required hereunder by giving Borrower ninety (90) days written notice. 5. The Borrower shall maintain minimum insurance coverages prescribed in Attachment II of this Agreement, which by this reference is incorporated herein. S502. Prohibition Aaainst Assianment. A. The Borrower shall not assign this Agreement, nor assign or transfer any interest or obligation in this Agreement (whether by assignment or novation) without prior written consent of the city. No part of the property securing this Agreement shall be assigned or transferred (except sales of inventory in the ordinary course of business), nor shall such property be pledged, without the prior written consent of City. B. The Borrower shall not enter into any agreement with any other party under which such other party shall become the recipient of claims due or to become due to the Borrower from the City without prior written consent of the city. l3 - , - \ 1~... - ~ - - ~ o S503. o o o Limitation of CorDorate Acts. In the event that Borrower is a corporation then the Borrower shall not amend its Articles of Incorporation or Bylaws, move to dissolve, transfer any assets derived from funds provided under this Agreement, or take any other steps which may materially affect its operations within the performance of this Agreement without first notifying the City in writing. The Borrower shall notify the City immediately in writing of any change in the Borrower's corporate name. . S504. Amendments and Waivers. This Agreement may not be changed or amended orally, and no waiver hereunder may be oral, but any change or amendment hereto or any waiver hereunder must be in writing and signed by the party or parties against whom such change, amendment, or waiver is sought to be enforced. S505. ComDliance with Statutes and Reaulations. A. The Borrower warrants and certifies that in the performance of this Agreement, it shall comply with all applicable statutes, rules, regulations and orders of the United States, the State of California, the County and City of San Bernardino including laws and regulations pertaining to labor, wages, hours and other conditions of employment and the City's anti discrimination provisions and Affirmative Action Plan which by this reference is incorporated herein. Borrower further warrants and certifies that it shall comply with new, amended, or revised laws, regulations, and/or procedures that apply to the performance of this Agreement, upon being provided notice thereof. Borrower covenants that the Davis-Bacon Act as amended, the Contract Work Hours and Safety Standards Act, and the Copeland "Anti-Kickback Act" shall be a part of all con struction contracts awarded by the Borrower pursuant to this Agreement and all sub contracts thereto. S506, Conflict of Interest. A, The Borrower covenants that none of its directors, officers, employees, or agents shall participate in selecting sub contractors, or administering subcontracts supported (in whole or in part) by Federal funds where such person is a director, officer, employee or agent of the subcontractor, or where such person knows or should have known that: 1. A member of such person's immediate family, or partner, or organization has a financial interest in the sub contract; 14 o 2. ,.<, L r;. ,.0-, ..... The subcontractor i~someo~with whom such person has c:> negotiated or is negotiating any prospective employment; or 3. The participation of such persons would be prohibited by the California Political Reform Act, California Government Code Section 87100 et seq., if such person were a public officer, because such person would have a "financial or other interest" in the subcontract. B. Definitions: 1. The term "immediate family" includes, but is not limited to, those persons related by blood or marriage, such as husband, wife, father, mother, brother, sister, son, daughter, father-in-law, motherin-law, brother-in-law, son-in-law and daughter-in-law. 2. The term "financial or other interest" includes, but is not limited to: ,- a. Any direct or indirect financial interest in the specific contract, including a commission or fee, a share of the proceeds, prospect of a promotion or future employment, a profit, or any other form of financial reward. b. Any of the following interests in the sUbcontracting entity: partnership interest or other beneficial interest of five percent (5t) or more of the stock; employment in a managerial capacity; or membership on the board of directors or governing body. This provision shall not apply to serving on the board or governing body of a non-profit corporation for which no salary is paid or other compensation. C. The Borrower further covenants that no officer, director, employee or agent shall solicit or accept gratuities, favors, or anything of monetary value, from an actual or Potential subcontractor, supplier, a party to a sub agreement, (or persons who are otherwise in a position to benefit from the actions of any officer, employee or agent). D. The Borrower shall not subcontract with a former director, officer, or employee within a one (1) year period following the termination of the relationship between said person and the Borrower. E, Prior to obtaining the City's approval of any subcontract, the Borrower shall disclose to the City any relationship, financial or otherwise, direct or indirect, of the Borrower or any of its officers, directors or employees of their immediate family with the proposed subcontractor and its officers, directors or employees. 15 IIllI I. . - - 6.::\ o o For further c1arificati~ of t~meaning of any of the terms used herein, the parties agree that references shall be made to the gUidelines, rules and laws of the City of San Bernar dino, State of California, and Federal regulation regarding conflict of interest. G. The Borrower warrants that it has not paid or given and will not payor give to any third person any money or other consideration tor obtaining this Agreement. H. The Borrower Covenants that no member, officer, employee of Borrower shall have any interest, direct or indirect, in any contract or subcontract of the proceeds thereof for work to be performed in connection with this project during hiS/her tenure as such employee, member or officer or for one (1) year thereafter. I. The Borrower shall incorporate the foregoing subsections of this section into every agreement that it enters into in connection with this project and shall substitute the term "subcontractor" for the term "Borrower" and "Sub-contractor" for "Subcontractor". 5507. Political Activitv Prohibited. None of the funds, materials, property or services provided directly or indirectly under this Agreement shall be used for any partisan political activity, or to further the election or defeat of any candidate for pUblic office. S508. Lobbvina Prohibited. None of the funds provided under this Agreement shall be used for any purpose designed to support or defeat any pending legislation or administrative regulation. S509. Installation of Financial Assistance Plan. The Borrower shall install, or cause to be installed, for public display upon the project premises a sign, with design approved by City, identifying the Borrower as receiving financial assistance from the City, if such a sign is requested by the Director of Community Development Depart ment. S510. Press Releases. In all communications with the press, television, radio or any other means of communicating with the general community, the Borrower shall make specific reference to the City of San Bernardino Community Development Department as the sponsoring agency of the project. S5l1. Discrimination Prohibited. 16 .b, ~ J.. c. ~ No person aha 1'; on the~ounds~f race, religion, ancestry~ color, national origin, sex, age, or physical handicap, be excluded from participation in, be denied the benetit ot, or be subjected to discrimination under this program /project. For purposes of this Section, title 24, Code ot Federal Regulations Section 570.601(b) defines specific discriminatory actions which are prohibited and correction action which shall be taken in situations as defined therein. II ..L .t1. o 5512. Nondiscrimination. Eaual EmDlovment Practices and Atfirma tive Action Proaram. The Borrower shall comply with the nondiscrimination and affirmative action provisions of the laws of the United States of America, the state of california, and the City. In performing this Agreement, the Borrower shall not dis criminate in its employment practices against any employee, or applicant for employment because of person's race, religion, ancestry, color, national origin, sex, age or physical handicap. Any subcontract entered into by the Borrower relating to this Agreement, to the extent allowed hereunder, shall be subject to the provisions of this paragraph. S513. EmDlovment ODDortunities for Business and Lower Income Persons. Any project/program funded in part or in whole with Com- munity Development funds shall comply with the following, provisions (referred to as a Section 3 clause:) 1. The work to be performed under this contract (Agreement) is on a project assisted under a program providing direct Federal financing assistance from the Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 use 1701u. Section 3 requires that to the greatest extent feasible oPportunities for training and employment be given to lower income residents of the project area and contracts (Agreements) for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the area of the project. 2. The parties to this contract (Agreement) will comply with the provisions of said Section 3 and the regula tions issued pursuant thereto by the Secretary of Housing and Urban Development set forth in Title 24 CFR, Part 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this contract (Agreement) certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements. 17 il ~ a L ( .. ."~ - - ~ ~~ o o 0 o 3. The Borrower will send to each labor organization or representative of wor~ers with which he has a collective bargaining agreement or other contract or understanding, if any, a notice advising the said labor organization or Worker's representative of its commitments under this Section 3 clause and shall post copies of the not~ce in conspicuous places available to employe.s and applicants for employment and training. 4. The Borrower will include this Section 3 clause in every subcontract, for work in connection with the project and will, at the direction of the applicant for or recipient of Federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR, Part 135. The Borrower will not subcontract with any subcontractor where it has notice of knowledge that the latter has been found in violation of regulations under Title 24, CFR 135 and will not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. 5. Compliance with the provisions of Section 3, the regu lations set forth in Title 24 CFR, Part 135, and all applicable rules and order of the Department issued thereunder prior to the execution of the contract (Agreement), shall be a condition of the Federal finan cial assistance provided to the project, binding upon the applicant or recipient for such assistance, its successors, and assigns. Failure to fulfill these requirements shall subject the applicant or recipient, its Contractors and subcontractors, its SUccessors and assigns to those sanctions specified by the grant or loan agreement or contract through which Federal assis tance is provided, and to such sanctions as are spec ified by Title 24 CFR, Part 135. 5514. ParticiDation of Minorities. Women and Small Businesses. To the fullest extent possible in the administration of this Agreement, Borrower agrees to provide opportunities for minorities, Women and small businesses to participate in procurements under this Agreement. S515. CaDtions. The section headings appearing herein shall not be deemed to govern, limit, modify or in any way affect the scope, meaning or intent of these conditions. S516. Effect of Leqal Judoment. 18 <1 ~.' . \;. . ~ r:. o Should any covenant, c~ition~ provision herein contai~ be held to be invalid by final jUdgment in any court of competent jurisdiction, the invalidity of such covenant, condition or provision shall not in any way affect any other covenant, condition or provision herein contained. 5517. Choice of Law Governing this Aareement. This Agreement shall be qoverned by ancl construed in accor dance with the laws of the state of California. 5518. Prohibition of Leaal Proceedinas. The Borrower is prohibited from using Grant funds received under this Agreement, or funds realized as a result of this Agreement, for the purpose of instituting legal proceedings against the City or its official representative. 5519. Riahts and Remedies. In the event any party fails to perform, in whole or in part, any promise, covenant, or agreement heren, or should any representation made by it be untrue, any aggrieved party may avail itself to all rights and remedies, at law or equity, in the courts of law. 5aid rights and remedies are in addition to those provided for herein. SECTION VI. ENTIRE AGREEMENT. 5601. Comclete Aareement. This Agreement contains the full and complete Agreement between the two parties. No verbal agreement or conversa tion with any officer or employee of either party shall effect or modify any ot the terms and conditions of this Agreement. S602. Number of Paaes and Attachments. This Agreement is executed in three (3) duplicate originals, each of which is deemed to be an original. This Agreement includes, Twenty (..1Q..) pages and Two (-1-) attachments which constitute the entire understanding and agreement of the parties. IIII IIII 19 u J J - . , '., .... (j IN WITNESS WHEREOF, the~ty Borrower have caused this Agreement authorized representatives on this ,19_. ATTEST: City Clerk Approved as to form and legal content: f' 20 4- (;..; '. o~an Bernardino to be executed by day of o and thee their duly CITY OF SAN BERNARDINO Mayor (CORPORATION) BY Corporate President ATTEST: BY Corporate Secretary (Witness) ., - tllI J1 - ( . . , - - (.' , - ~' . o o 0 ATTACHMENT I "EMPLOYMENT ACTION PLAN" o Economic Development Program Employment Action Plan Statement of Borrower Borrower does hereby state that the funds resultinq from the Loan Agreement entered into on behalf of the City of San Bernardino (hereinafter "City") and Borrower shall be used solely for furtherinq the purpose of the Economic Development proqram (EDP). The purpose of EDP assistance is to benefit the low and moderate income residents of the City of San Bernardino through the creation and/or retention of jobs to said per- sons. Pursuant to the purpose of the EDP the Borrower agrees to comply with the following Employment Action Plan: Borrower understands and aqrees that in order to deter- mine that said program purpose is beinq met, an Annual Employment Report shall be filed with the City. Borrower understands that failure to meet the obj~ctives set forth in this Employment Action Plan or failure to comply with the requirements of filing the Annual Employment Report may result in the entire outstandinq balance of the loan plus interest, being due upon written demand by the City, pursuant to Section 302 of the Loan Agreement and this Statement. XJH/lab/0254 Economic Development Program IJ .d. JIll - If": ~ - r.'. .,. o A~NTQI INSURANCE REQUIREMENTS o (Instruction. for completing, executing and submitting EVidence of Insurance to the City of San Bernardino.) Insur.d: (Contractor, Le...., permitt.., Borrow.r, Etc.) Agreement/Reference No. Date: A. INSURED 1. To expedite completion of the insurance requirements, please give your insurance agent or broker a copy of the Insurance Requirement. Sheet along with these instructions and endorsement forms. 2. If your agreement requires Workers' Compensation coverage and you have been authorized by the State of California to Self-insure Workers' Compensation, then a copy of the certificate from the State consenting to self-insurance will meet the evidence requirements. 3. All questions relating to insurance should be directed to the person or office responsible for your contract, lease, permit, or other agreement. (See items 9 and 10 below.) B. INSURANCE AGENT OR BROKER 1. Acceptable Evidence -- The appropriate City Special Endorse- ments are the preferred form of evidence. No modifications to the form are permitted. Alternatively, certified copies of the full policy containing additional insured and thirty (30) day cancellation notice 1anquaqe will be accepted subject to review by the City Attorney. Certificates, Verification., Memoranda of Insurance and other non-binding documents submitted along are not acceptable as evidence of insurance. Binders are acceptable as interim evidence until policies are available. 2. Multiple Policies -- More than one (1) insurance policy may be required to comply with the insurance requirements. Endorsement forms appropriate to your insured's agreement, contract, lease or permit have been provided. 3. Signature -- Please have an authorized representative of the insurance company manually sign completed endorsement forms. Signatures must be originals as the City Attorney will not accept facsimile (rubber stamp, photocopy, etc.) or ini- tialed signatures. 1 'J. lJ J:ll1,. _ ~ - &\ r ond'<writ.r ~~ Th. ,...<;tnd ..Ji>... .f tho in.ur.neo .....~ underwriting the coverage must be noted on the endorsement form. In the case of syndicates or subscription POlicies, indicate lead underwriters or managing agent and attach a schedule of subscribers, including their percent participa- tion. o 5. Document Reference -- Include reference to either the specific City agreement (bid, contract, lease, etc.) or indicate that all such agreements are covered. Insurance Requirements: 6. Coverage and Limits -- The coverages and limits for each type of insurance are specified on the insurance requirement sheet. When coverage is on a scheduled basis, a separate sheet may be attached to the endorsement listing such scheduled locations, vehicles, etc., so covered. 7. Excess Insurance -- Endorsements to excess policies will be required when primary insurance is insufficient to comply with the requirements. 8. Additional Pages -- If there is insufficient space on the reverse side of the form to note pertinent information, such as inclusions, exclusions or specific prOVisions, etc., attach separate sheets and note this on the endorsement form. 9. Person to Contact -- Completed endorsements, correspondence and questions relating to the required insurance are to be directed to the following representatives: 10. Technical Assistance -- Improperly completed endorsements will be returned to your insured for correction. 11. Delay in submitting properly completed endorsement forms may delay your insured's intended occupancy or operation. 12. Renewals -- For extensions or renewals of insurance policies which have the City's endorsement formes) attached, we will accept a renewal endorsement or a certificate (with an original Signature) as evidence of continued coverage if it includes the statement that the insurance protection afforded the City of San Bernardino has been renewed under the same terms and conditions as previOUSly approved. 2 J. ~' .\ - (".' '. o o o o INSURANCE REQUIREMENTS (Attachment II) NAME AGREEMENT/REFERENCE NUMBER DATE The followinq coveraqe. noted with an .X. are required with the Combined Single Limits (CSL) as noted on the right. Worker's Compensation Employers Liability ( ) Broad Form All States Endorsement e ) Voluntary Compensation Endorsement e ) Longshoremen's and Harbor Workers' Compensation Act Endorsement e ) Limits Statutory $ 100.000 General Liability ( ) Premises and Operations ( ) Contractual Liability e ) Independent Contractors e ) Products/Completed Operations e ) Broad Form Property Damage e ) Personal Injury ( ) Broad Form Liability Endorsement ( ) Fire Leqal Liability ( ) Watercraft Liability ( ) Incidental Medical Malpractice (if applicable) ( ) Explosion Hazard ( ) Collapse Hazard ( ) Underground Hazard ( ) Garagekeepers Leqal Liability ( ) Hanqar Keeps Legal Liability ( ) OWned Automobiles ( ) Nonowned Automobiles ( ) Hired Automobiles ( ) $1.000.000 Automobile Liability (if auto is used for this contract.) Professional Liability (if applicable) $1.000.000 $ 500.000 Property Insurance 90' value of building ( ) Extended Coverage ( ) Vandalims and Malicious Mischief ( ) Flood ( ) Earthquake $ 3 J'~ ,. !I:l III {'-J 4i - r.:.: ...-"' ,'" 0 ( ) Debris Removal 0 0 '."J ( ) Sprinkler Leakage ( ) Windstorm ( ) Other Aircraft Liability (bodily injury and property damage.) ( ) Passenger Liability (per seat) $ Ocean liar in. $ Ocean Marine Liability ( ) Protection and Indemnity ( ) Running Down Clause ( ) Pollution ( ) Jones Act ( ) Wharfingers Liability ( ) Cargo ( ) Inchmaree Clause ( ) Charter's Legal Liability ( ) S $ Fire Legal Liability 90t of cost of reDlace- ment. Fidelity Bond $ 25.000 minimum I<JH/lab/0255 4