HomeMy WebLinkAbout2003-06-24; City Council; 17208; Amendment to Agmt with GVP Consultants4B# 17,208
IIITG. 6/24/03
IEPT. ENG
RECOMMENDED ACTION:
TITLE: APPROVAL OF AMENDMENT NO. 4 TO
MASTER AGREEMENT FOR
WITH GVP CONSULTANTS
PROFESSIONAL ENGINEERING SERVICES CITY ATT
CITY MGR.
Adopt Resolution No. 2003-159
GVP Consultants for professional engineering services.
approving Amendment No. 4 to the master agreement with
ITEM EXPLANATION:
In June of 2001, City Council approved an agreement with GVP Consultants to provide professional
engineering services to the City. Pursuant to its terms, the agreement was extended for two of its
three one-year periods allowed. This amendment will increase its not-to-exceed amount from
$250,000 to $325,000 for the 2002-2003 fiscal year. It would also extend the agreement for an
additional one (I) year period at a not-to exceed amount of $250,000. The agreement will then
expire June 30, 2004. The Engineering Department has had an increased need for GVP
Consultants services in order to maintain continuity for the planchecking of large projects received
this fiscal year and capital projects being processed by the City.
Staff is recommending that the City continue to contract with GVP Consultants to assist staff, on an
as-needed basis, with planchecking services, facility planning, project management, review and
recommendation of cost reports and studies and assessment engineering. Selection of this firm was
previously based on the consultant's expertise in the areas needed and past experience working
with the City on similar projects. Staff believes the experience gained by the consultant over the past
years under the existing contract has only enhanced his ability to provide the professional
engineering services required by the City. An agreement with this firm will provide continuity in work
that needs to be accomplished.
As with all Master Agreements for professional engineering services prepared by the City, payment
for services will be made from the specific plancheck service's and capital project's accounts as
work is completed by the consultant.
FISCAL IMPACT:
Cost for professional engineering services will be charged to the plancheck services and various
capital projects as part of the available funding. The maximum amount payable to the consultant for
fiscal year 2002-2003 will not exceed $325,000 and for fiscal year 2003-2004 will not exceed
$250,000.
EXHIBITS:
1. Resolution No. 2003-159 approving Amendment No. 4 to the master agreement
with GVP Consultants for professional engineering services.
2. Amendment No. 4 with GVP Consultants.
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RESOLUTION NO. 2003-159
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING AMENDMENT NO. 4
TO AN AGREEMENT WITH GVP CONSULTANTS FOR PROFESSIONAL ENGINEERING SERVICES.
WHEREAS, the City Council of the City of Carlsbad, California, has reviewed and
determined the need for the utilization of engineering consultant services on an ongoing,
as-needed basis in order to maintain service levels; and
WHEREAS, the City Council has further determined GVP Consultants has the necessary
skills to fulfill the City’s need for professional engineering services; and
WHEREAS, the City Council has further determined that GVP Consultants is uniquely
qualified to provide professional engineering services because of their experience with City policy
and procedures; and
WHEREAS, the City Council recognizes the need to maintain the continuity of work in
progress by utilizing GVP Consultants, to provide professional engineering services.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows:
1. That the above recitations are true and correct.
2. That Amendment No. 4 with GVP Consultants, a copy of which is attached as
Exhibit A, and made a part hereof increasing the not-to-exceed amount from $250,000 to
b325,000 for fiscal year 2002-2003 and $250,000 for fiscal year 2003-2004 is hereby approved.
3.
SVP Consultants.
That the City Manager is hereby authorized to execute the amendment with
PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council
ield on the 24th dayof JUNE , 2003 by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Hall, Packard
NOES: Nop
ITTEST
.ORMINE M. WUOD, City Cleik 4 (SEAL)
AMENDMENT NO. 4 TO EXTEND AND AMEND AGREEMENT
FOR PROFESSIONAL ENGINEERING SERVICES
(GVP CONSULTANTS)
This Amendment No. 4 is entered into and effective as of the 274 day of , 2003, extending the agreement dated June 10, 2001 (the “Agreement”) by
and between the City of Carlsbad, a municipal corporation, (“City”), and GVP Consultants
(“Contractor”) (collectively, the “Parties”).
RECITALS
A. On April 12, 2002, the Parties executed Amendment No. 1 to the Agreement
which altered the fees to be paid to Contractor by increasing the not-to-exceed amount from
one hundred fifty thousand dollars ($1 50,000) to two hundred thousand dollars ($200,000)
per year; and
B. On June 11, 2002, the Parties executed Amendment No. 2 to the Agreement
extending the term of the Agreement for one (1) year ending on June 30,2003; and
C. On January 22,2003, the Parties executed Amendment No. 3 to the Agreement
which altered the fees to be paid to Contractor by increasing the not-to-exceed amount from two
hundred thousand dollars ($200,000) to two hundred fifty thousand dollars ($250,000) per year;
and
D. The Parties desire to alter the Agreement’s fees to be paid to the Contractor for
the remainder of fiscal year 2002-2003 only, and effective as of the executed date of this
amendment by increasing the not-to-exceed amount from two hundred fifty thousand dollars
($250,000) to three hundred twenty-five thousand dollars ($325,000); and
E. The Parties desire to extend the Agreement for a period of one (1) year ending
on June 30, 2004 at a not-to-exceed amount of two hundred fifty thousand dollars ($250,000)
for the 2003-2004 fiscal year.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contactor agree as follows:
1. City will pay Contractor for all work associated with those services described in
the original Agreement on a time and materials basis not-to-exceed three hundred twenty-five
thousand dollars ($325,000) for the remainder of fiscal year 2002-2003, effective on the
executed date of this amendment. Contractor will provide City, on a monthly basis, copies of
invoices sufficiently detailed to include completed plan checks, fee basis, hours performed,
hourly rates, and related activities and costs for review and approval by the City.
2. That the agreement, as may have been amended from time to time, is hereby
extended for a period of one (1) year ending on June 30, 2004 on a time and materials basis
not-to-exceed two hundred fifty thousand dollars ($250,000). The not-to-exceed rate will revert
from three hundred twenty five thousand dollars ($325,000) to two hundred fifty thousand
dollars ($250,000) per fiscal year effective July 1, 2003.
City Attorney Approved Version #05.22.01
1
3. All other provisions of the Agreement, as may have been amended from time to
time, will remain in full force and effect.
4. All requisite insurance policies to be maintained by the Contractor pursuant to the
Agreement, as may have been amended from time to time, will include coverage for this
Amendment.
5. The individuals executing this Amendment and the instruments referenced in it
on behalf of Contractor each represent and warrant that they have the legal power, right and
actual authority to bind Contractor to the terms and conditions of this Amendment.
CONTRACTOR CITY OF CARLSBAD, a municipal
corporation of the State of California
’ (sign here)
_Ll/;u, -7 /L !!!A ATTEST:
**By:
(print namdtitle)
(sign here)
City Clerk
(print namekitle)
If required by City, proper notarial acknowledgment of execution by contractor must be
attached. If a Corporation, Agreement must be signed by one corporate officer from
each of the following two groups.
*Group A.
Chairman,
President, or
Vice-president
**Group B.
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or
assistant secretary under corporate seal empowering the officer(@ signing to bind the
corporation.
APPROVED AS TO FORM:
RONALD R. BALL, City Attorney
City Attorney Approved Version M5.22.01
2
State of California )
) County of San Diego )
On, June 4, 2003, before me, Belinda R. Guzman, Notary Public, personally appeared
Glen K. Van Peski, personally known me to be the person whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his
authorized capacity, and that by his signature on the instrument the person, or entity upon
behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal
Signature of Notary L' (This area for
official notary seal)
Title or Type of Document Amendment No. 4 to Extend and Amend Agreement for
Professional Engineering Services (GVP Consultants)
Date of Document 6/04/03 No. of Pages 2
Signer(s) other than named above none
ACoRDTM CERTIFICATE OF ClABiLlTY INSURANCE DATE (MMIDDNY)
DEC 6 02
COVERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAME0 ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
4NY REQUIREMENT. TERM OR CONDITION Of ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR WAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AN0 CONDITIONS OF SUCH WJLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCE0 BY PAID CLAIMS.
PRODUCER MICHAEL J. HALL 81 COMPANY NE INSURANCE SERVICES
19578 1OTH AVENUE N.E.
POULSBO WA 98370 PHONE: (360) 598-3700
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AN0 CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
I
Agency Lit#: 0792445 FAX: (360) 598-3703
INSURED
GVP CONSULTANTS 3764CAVERN PLACE CARLSBAD CA 92008
EXCESS I UMBERELLA LIAMLITY
OCCUR CIAIMSMADE b
INSURERS AFFORDING COVERAGE NAlC #
INSURER A: LUMBERMENS MUTUAL CASUALN COMPANY I $.
INSURER B: AMERICAN MANUFACTURERS INSURAN c&
INSURER C:
INSURER D:
INSURER E:
-
-
TYPE OF INSURANCE NSd LTR
- GENERAL UABILITY x COMMERCIAL GENERAL LlABlLlM 1 CLAIMS MADE 13 OCCUR = ___ - ~~
-
GENL AGGREGATE LIMIT APPLIES PER -
CT i nr.
AUTOMOBILE LIABILITY
ANY AUTO
ALL OWNED AUTOS
SCHEDULED AUTOS
-
LIMITS WUCY EFFECTIVE POLICY wimnon DATE IMMlDDrm DATE (MMmDrWl POLICY NUMBER
IRE82309640 OCT21 02 OCT 21 03 EACH OCCURRENCE s i,ooo,ooa
s 1oo,ooa
10,000
PERSONAL B ADV INJURY $ 1,000,000
GENERAL AGGREGATE s 2,000,000
PRODUCTS-COMPX)P AGO. t 2,000,000
(Ea acudent) 1,000,000
MYAGE TO RENTED PREMISES E8 oeprrc-I
MED. UP (Any One Person)
7RE823096-00 OCT21 02 OCT 21 03 COMBINED SINGLE LIMIT
BODILY INJURY
BODILY INJURY (Per accidenl)
PROPERTY DAMAGE
I 1
IESCRIPTION OF OPERATlONSlLOCATlONNEHlCLES/EXCLUSlONS ADDED ENDORSEMENT] SPECIAL PROVISIONS
II
GARAGE LIABILITY
ANY AUTO - AUTO ONLY - EA ACCIDENT
OTHER THAN EAACC s
AUTO ONLY: AGG
;EE SUPPLEMENTAL CERTIFICATE INFORMATION I
CITY OF CARLSBAD
ENGINEERING DEPT
1635 FARADAY AVENUE
CARLSBAD, CA 92008
Attention: DONNA HARVEY
EACH OCCURRENCE
AGGREGATE
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED, OR MATERIALLY- CHANGED. BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT.
s
s
s
AUTHORIZED REPRESENTATIVE & /z 70
DEDUCTIBLE
RETENTION
WORKERS COMPENSATION AN0 EMPLOYERS LIABILITI
ANY PROPRIETDRIPARTNERIOIECUnVE OFFICEWYAMMR EXCLUDED7
H yvs. dwscnk undmr SPECIAL PROVISIONS b.lw
OTHER PROFESSIONAL LIABILITY , CLAIMS MADE FORM
I
ACORD 25 (2001108) Certificate # 16165 ASHLEY HURD
f
s
WC STATU- I TORY LIMITS I loTHER
- E L EACH ACCIDENT s
EL CISEASE-G1 EMPLO IEE 5
EL DISEASE-WLICY LIMIT S
QL018938-00 DEC 1 01 DEC 1 04 $1,000,000 EACH CLAIM Si ,000,000 AGGREGATE
s CERTIFICATE HOLDER x ADDITIONAL INSURED INSURER LETTER: - CANCELMTlON
POLICY NUMBER: 7RE823096-00 COMMERCIAL GENERAL LIABILITY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED-OWNERS, LESSEES OR
CONTRACTORS (Form B)
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY
COMMERCIAL AUTO LIABILITY
SCHEDULE
Name of Person or Organization; CITY OF CARLSBAD, (AND/OR IF APPLICABLE-THE CITY OF
CARLSBAD REDEVELOPMENT AGENCY, HOUSING AUTHORlrY OR
CARLSBAD MUNICIPAL WATER DISTRICT) ITS OFFICIALS, EMPLOYEES AND VOLUNTEERS
(If no entry appears above. information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.)
WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of "your work' for that insured by
or for you \
CG 20 10 11 85 Copyright. Insurance Services Office, lnc., 1984
Certificate # 16165
POLICY NUMBER: 7RE823096-00 COMMERCIAL GENERAL LIABILITY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ THIS CAREFULLY
ADDITIONAL INSURED PRIMARY COVERAGE
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
This insurance is primary for the person or organization shown in the schedule, but only with respect to liability arising out of your
work or that insured by or for you. Other insurance afforded to that insured will apply as excess and not contribute as primary to the
insurance afforded by this endorsement.
All other endorsement provisions, conditions and exclusions of this insurance shall remain unchanged and apply to the additional
insured and described below.
SCHEDULE
ADDITIONAL INSURED CONTRACT/PROJECT
CARLSBAD REDEVELOPMENT AGENCY, HOUSING AUTHORITY OR
CARLSBAD MUNICIPAL WATER DISTRICT) ITS OFFICIALS,
EMPLOYEES AND VOLUNTEERS
CITY OF CARLSBAD, (AND/OR IF APPLICABLE-THE CITY OF
NAMED INSURED GVP CONSULTANTS
3764 CAVERN PLACE
CARLSBAD CA 92008
Certificate # 16165
DESCRIPTION OF OPERATlONS/LOCATlONSNEHlCLES/SPECIAL ITEMS
PROJECT PLAN CHECKING SERVICES
CERTIFICATE HOLDER IS AN ADDITIONAL INSURED ON THE COMMERCIAL GENERAL LIABILITY AND AUTOMOBILE LIABILITY POLICIES AS
RESPECTS LIABILITY ARISING OUT OF ACTIVITIES BY, OR ON BEHALF OF THE NAMED INSURED.
THIS INSURANCE IS PRIMARY INSURANCE AND ANY OTHER INSURANCE MAINTAINED BY THE ADDITIONAL INSUREDS SHALL BE EXCESS
ONLY AND NON CONTRIBUTING WITH THIS INSURANCE.
A WAIVER OF SUBROGATION APPLIES TO THE GENERAL LIABILITY & THE AUTO LIABILITY POLICY IN FAVOR OF THE ADDITIONAL
INSURED.
Certificate # 16165
May. 30 I 2003 12: I BPM No.0287
IMPORTANT NOTICE CONCERNING YOUR RIGHTS
UNDER A CUT-THROUGH AGREEMENT
NATIONAL INDEMNITY COMPANY
lnswance Pollcy (the "Policf) to which this notice applies: QLOl893800
Insurer (the -Company): LUMBERMENS MUTUAL CASUALM CO.,
Policy Inception Date: 12X)l12001
Pdicy No.: QLO1893800
Named Insured (the "Insured.): GVP Cansultants
The Notice Inception Date is 12/01/2001
P' 6/9
For value received, National Indemnity Company (hereinafter refed b as 'National In*mnit)r) agrees that in the
event the Company does not pay amounts othmke payable under the Policy as a result of a court of competent
jurisdiction or the state insurance regulatory authority in the Company's domiciliary state ('insurance mgufatory authow) issuing an order finding such Company to be irldolvent or entering an order to the Company which legally prohibits the Company from paying Poky amounts othewlse payabb because of the Company's fmancial
cornon, then National Indemnity will pay on behalf of the Company 700% of any amount payable by the Company under the Policy that has not been previously paid by the Company, subject always to the other terms, conditions, exclusions and limitations of the Policy. National Indemnity will meke such payment directly to the
Insured (or to its mortgagees, assignees or loss payees, as their interests may appear) in the event of first-party coverages, or directly to the claimant or claimants to whom the Insured is legally liable fn lhe event of third-party
coverages. As a condltbn of Nationaf lndemnws payment obligation. the Insurea, after receiving actual notice of
'the receivership or lnsolvtficy of the Gompany, shall provide prompt written notke to National Indemnity, attention: Kempr Cut-Through, at its statutq Home Office as on record with the National Association of Insurance
Commissioners, of any claim or suit for which National Indemnity may be liable by reason of this agreement herein.
As a condition precedent to payment hereunder, National Indemnity shall be deemed to have all the rights of the
Company and be submgated to all the tights of the Insured to the extent of such payment.
In the case of third-party liability coverages, payment shall be due hereunder only after any one of the following
three conditions is met: (1) the claimant obtains a judgment against the Insured or the Company after actual trial by
a courl of competent jurisdiction; or (2) the claimant enters into a sefflement with the Insured or the Company
approved by Natlonal Indemnity; or (3) the claimant enters into a settlement with the Insured or the Company
approved by the Company prior to it being declared insolvent or prohibhed from paying amounts due under the
Policy. None of these conditions shall apply to first-party coverages, including but not limited to any state workers'
compensation or similar federal compensation coverages that may be provided by the Policy.
IL 80 38 (Ed. 12 02) Page 1 of 2 Prlntd in U.S.A.
Mav.30- 2003 12:19PM
Upon the Company being declared insolvent or being legally prohibfled from paying Policy amounts ohbwise
payable because of the Company's financial condition by a court of competent jurisdiction or insurance regulatory
authority or upon any insurance regulator assuming any control over the Companfs claims handling process, National Indemnity has the right, but not the duty. to assume any obligation the Company may have to provide a
defense to the Insured, if such an obligation is created by the Policy. If National Indemnity does not assume such obllgation, it wlll reimburse he Insured for the reasonable cost of such defense to the extent hat the Company
would have been obliged to pay such cost under its obligation to defend. Naknal Indemnity and the Insured will
cooperate in the selection of defense courtsel at me Commencement of Itligation. Nothing herein shall make National Indemnity the Insurer under the Policy. National Indemnity's digation hereunder is limited to the
Company's obligations under the Poky and shall not include any payment arising under claims of bad faith, extra contractual obli@Wms or payments in excess of policy limits.
In the event the Notice Inception Date is later than the Polby Inception Date. then this Notice does not apply b my damages, offense or loss of any nature for which coverage ie otherwise provided under the Policy if such damages, offense or loss BOornmBncee' in whole or in part pdor to the Notice Inception Date, even if such damages, offense or (OSS continues, is alleged to mtinua, or is deemed to continue on or after the Notice Imption Oats. For the purposes of this Notice only, %omma)nces' shd mean: (i) first occurs, is affeged to first occur or Is deemed to first
ooour; w (ii) incepts, is alleged to incept or is deemed to incept or (ili) first manifests, is alleged to have rirst
manifested, or is deemed to have first manifested. "Cmmence' is the earliest point in time of (i), (ii) or (lir). National Indemnity has no liabilii to make payments or reimburse any person for paynents If the payments wem incurred in
connwtion with or were in any way related to such excluded damaoes, offense or loss
NATIONAL INDEMNITY COMPANY
IL 80 38 (Ed. 12 02)
LUMBERMENS MUTUAL CASUALTY GO.
President Chairman and Chief Executive Officer
Pege 2 of 2 Printed in U,S,A.
Mav.30. 2003 12:19PM No.0287 P. 819
IMPORTANT NOTICE CONCERNING YOUR RIGHTS
UNDER A CUT-THROUGH AGREEMENT
NATIONAL INDEMNITY COMPANY
Insurance Poky (the “Policy“) to which thls notice applies: 7RE823096-00
’ Insurer (ahe Ybrnpanf): AMERICAN MANUFACIURERS MUTUAL
Policy Inception Date: 1~1/2002
Policy No.: 7REB23096-00
Named Insured (the “Insured”): GLEN VAN PESKl DBA:
The Notice Inception Date is 12/23/2002
For value received, National Indemnity Company (hereinafbr &erred to as ‘National Indemnity‘) agrees that in the went the Company daas not pay amounts otherwise payable under the Policy as a result of a court of competent
jurisdiction or the state Insurance regulatory authority in the Company’s domiciliary state (“insurance regulatory auth0rit)r) issuing an order finding such Company to be insolvent or entering an order to the Company which
legally prohibits the Company from paying Policy BmountS otherwise payable because of the COmpanfs financial condition, then Natlonal Indemnity will pay on behalf of the Company 300% of any amount payable by the
Company under the Policy that has not been previously paid by the Company, subject always to the other terms, condiions, exclusions and limitations of the Policy. National Indemnity will make such payment directly to me Insured (or to rts mortgagees, assignees or toss payees, as their interests may appear) in the event of first-party
ooverages. or directly to the claimant or claimants to whom the Insured is legally liable in the event of third-party coverages. As a condition of National Indemnity‘s payment obligation, the Insured, after receiving actual notic8 of the receivership or insolvency of the Company, shall provide prompt wdlten notice to National Indemnity, attention:
Kempar Cut-Through. at A statutory Home Office as on record with the National Association of Insurance
Commissioners, of any dah or suit for which NdiOMil Indemnity may be liable by reason of this agreement herein. As a oondltlon precedent to payment hereunder, National Indemnity shall be deemed to have all the rights of the Company and be subrogated to all the rights of the Insured to the extent of such payment
In the case of hidparty liabdity coverages, payment shall be due hereunder only after any one of the following
three conditions is met: (1) the claimant obtains a judgment against the Insured or the Company after actual trial by
a court of competent jurisdictlon; or (2) the claimant enters into a settfement with tha Insured or the Company
approved by National Indemnity: or (3) the claimant enters into a dement with the insured or the Company
approved by the Company prior to it being declared insolvent or prohibited from paying amounts due under the
Policy. None of these condi9ons shall apply to first-party coverages, Including but not limited lo any state workers’ compensation or similar federal compensation coverages that may be provided by the Policy.
IL 80 38 (Ed. V2 02) Page 1 of 2 Printed in U.S.A.
Ma Y 30. 2003 12:19PM 919
Upon the Company being declared insotvent or being legally prohibited from paying Policy amounts otherwise payable because of the Company's financial condition by a court of competent jurisdiction or insurance regulatory
authority or upon any insurance regulator assuming any control over the Companfs claims handling process,
National Indemnity has the right, but not the duty, to assume any obfigation the Company may have to provide a
defense to the Insured, if such an obligation is created by the Policy. If National Indemnity does not assume such obligation, it will reimburse the Insured for the reasonable cost of such defense to the extent that the Company would have been obUged to pay such cost under its obligation to defend. National Inffamnity and the Insured will coopeme In the selection of defense counsel at the commencement of litigation Nothing herein shall make National Indemnity ?he insurer under the Policy. National Indemnity's obligation hereunder is llmited to the
Company's obligations under the Policy and shall not include any payment arising under claims of bad faith, extra
contractual obligations or payments in excess of poky limits.
In (he event tho No&e Inceptlon Date is later than the Policy IncepUon Dare, then this Notice does not apply to any damages. offense or loss of any nature for which caverage is othennrfso provided under the Policy if such damages, offense or loss 'commences" in whde or in part prior to the Notice Inception Date, even if such damages. offense or loss continues, is alleged to continue, or Is deemed to continue on or after the Notice tnceptlon Date. For the
purposes of this NotiGe only, 'commences' shall mean: (i) first occurs. is alleged to ffrst occur or Is deemed to first
occur; or (ii) incepts, is alleged to incept or is deemed to incepc or (i) fiM manifests, Is alleged to have first
manifested, or is deemed to have first manifested. yCommence" is the earliest point in time of (i), (ii) or Oii). National
Indemnity has no liabili to make payments or rehnburse any person for payments if the peyments were incurred rn connection with or were in any way related to such excluded damages, offense vr Ioss.
NATIONAL INDEMNITY COMPANY AMERICAN MANUFACTURERS MUTUAL
President Chairman and Chlef Exscutive Officer
IL 80 38 (Ed. 12 02) Pane 3 nt 9