Unreasonable co-op alteration agreement for apartment renovations in NYC

[ryan_gz]

Has anyone seen anything as demanding as this before? I'm almost tempted to give up on trying to renovate before selling my apartment in NYC. I know condos have alteration agreements as well, but I somehow doubt they are as demanding as coops. It's unreal how much risk I have to take on as a shareholder just to renovate my apartment. And my guess is any edits to this agreements are out of the question!

Dear Shareholder:

In order to preserve the integrity of the property, and to maintain a smooth running building, any shareholder planning alterations or renovations must first submit the proper documents for Management approval.

The documents are as follows:

1) A letter stating the anticipated changes.
2) The shareholder’s architect’s plans or drawings. Note that certain alterations may require permits from the Department of Buildings and other authorities. Such alterations will require the submission of plans from a licensed architect or engineer.
3) A conformed and executed copy of all contracts between the shareholder, the contractors and all sub-contractors.
4) A copy of the NYC Department of Consumer Affairs license issued to all contractors and sub-contractors.
5) A copy of the lead paint license for all contractors and sub-contractors.
6) Copies of all licenses for all plumbers and electricians.
7) A signed copy of the alteration agreement or decorating agreement.
8) A security deposit of $1,600 for all decorative agreements.
9) A security deposit of 15% of cost of construction or $10,000 for all alteration agreements, whichever is greater.
10) A processing fee of $300 for a decorating agreement, or $600 for an alteration agreement made out to Building Management Inc.
11) Any and all documentation as may be required by the decoration or alteration agreement.

If you are planning a major renovation, the corporation will have the plans reviewed by an engineer or an architect, and the cost will be paid by the shareholder. This is to insure that the building’s systems will not be undermined or exhausted (electric, plumbing and load bearing walls). Work performed without pre-approval will be subject to correction or removal at the shareholder’s expense. Please review this document and the decoration or alteration agreement before you sign them.

Dear Board:

I hereby request permission to perform the alterations in my apartment as described in the annexed documents (such documents, the progress of such alterations and the completed renovation are hereby collectively referred to as the "work"). I understand that I need your permission to do the work and that in order for you to review my documents and consider my request prior to your rendering your determination, I hereby agree to the following covenants and conditions:

1. Plans and Specifications.

I shall furnish with this letter, in duplicate, the following documents: (1) plans and specifications prepared by a registered architect or licensed engineer setting forth a complete description of the specific proposed alteration(s) I desire (hereinafter collectively referred to as the "plans"); (2) a letter from my architect or engineer certifying that the service loads, including, but not limited to, plumbing, structural and electrical loads required as a result of the work (i) will not be in excess of the present electrical capacity of the Apartment; and (ii) will not adversely affect the Building; and (3) conformed copies of each and every agreement I have made with any contractor relating to the work, including all necessary license numbers.

2. Fees and Costs

Whether or not permission is granted, I shall pay or reimburse you or your managing agent, Building Management Inc. ("Agent"), on demand by you, all fees, costs and expenses incurred by you in connection with the proposed work, including and without limitation:

(a) fees incurred for legal, engineering, architectural or other professional advice;
(b) costs of inspections by your engineer or architect to ensure that the work is performed strictly in accordance with the plans and with normally accepted standards and that the work meets all governmental requirements;
(c) costs for adding building personnel, maintenance and services;
(d) to the extent that any regular Building personnel are required to render services as a result of the work, the expense of such time, including any wages, overtime pay and additional payroll taxes and benefits, that result therefrom;
(e) in the event of property damage to the building or any property of any resident thereof, the full cost of all repairs as determined by you, the Agent, or building superintendent (hereinafter the "Superintendent"); and
(f) the cost of any increase in real estate taxes levied against the Building because of an increase in assessed valuation attributable to the Building by reason of the work, including the modification of any tax abatement granted to the Building.
(g) a fee of $500.00 made payable to Building Management Inc., for the processing of this alteration application.

Any and all costs, fees and expenses incurred by you, as set forth above, shall be deemed to be additional sums chargeable to me under the terms of the Proprietary Lease for the Apartment. If I fail to pay or reimburse you for same, said nonpayment shall be deemed a default in the payment of rent by me thereunder and in addition to any and all remedies you may have hereunder, at law or in equity, you may pursue your remedies as are available to you based upon such a default.

3. Liens

Upon the completion of and my payment for the work, I shall procure from my contractor and submit to you for your approval, the contractor's written agreement waiving the right to file any mechanic's lien or other liens, attachments or encumbrances against the Building which may arise out of or in connection with the work. Proof that the contractor has obtained similar waivers from all subcontractors shall be filed with the Agent. If one or more mechanics' liens are filed in connection with the work, I shall cause such lien or liens to be discharged within twelve (12) days of the filing thereof. If I fail to so discharge any mechanic’s lien, you shall be entitled to exercise any and all rights and remedies you may have under the declaration and by-laws and/or applicable law. I agree to indemnify you and hold you, the Building, and the Agent harmless from and against any and all losses, liabilities, costs and expenses (including, without limitation, reasonable attorneys' fees and disbursements) suffered by reason of the filing of any mechanic's lien.

4. Indemnification and Reimbursement of Loss

During the progress of the work, I shall take such protective measures as may be necessary and as may be determined by the Board, the Agent or Superintendent to insure that other portions of the building, its mechanical systems and property of all other shareholders, owners, residents or occupants are not damaged as a result of the work.

I agree to indemnify and hold you, the Board, the shareholders or owners, the tenants and occupants of the Building, the Agent and your architects, engineers and attorneys harmless from and against any and all losses, liabilities, costs and expenses (including, without limitation, reasonable attorneys' fees and disbursements) suffered by reason of any injuries or damage to persons or property as a result of the work and any fault or defect therein or created thereby, whether or not caused by negligence. This indemnification shall survive completion of the work.

Note: Annexed hereto is an indemnification rider of one (1) page, which is made part of this agreement and must be fully executed.

[ryan_gz]

5. Time Period for Work

I understand that no work is to be performed on Saturdays, Sundays or legal holidays. Work may be performed only Monday through Friday, and only between the hours of 9:00 A.M. and 5:00 P.M. Work which will produce unusual noise, which may be disturbing to other occupants, shall not commence before 9:00 A.M. Workers shall be permitted to enter the Building at 8:30 A.M. to prepare for the work and to remain in the Apartment until 5:30 P.M. to store materials and tools for the work. The Board (or the Agent) shall determine in its sole and absolute judgment whether any noise levels created by the work may be disturbing, and shall have the right to immediately take whatever actions it deems necessary to cause me or my agents, contractors and subcontractors, as the case may be, to cease all activities creating such disturbing noise. Heightened noise work shall be performed only after at least one week's notice to the Cooperative of the dates of such work. Consent to performance of such work on such dates shall not be unreasonably denied by the Cooperative.

In the event of the occurrence of any event beyond my control including labor problems, actions or strikes, acts of God or other weather conditions which, in your opinion, make my continuation of the work dangerous or overly burdensome to you or the building, then you shall so notify me and I shall immediately cease the work and the time period within which I must complete the work shall be appropriately extended.

6. Required Insurance

A. Prior to the commencement of any of the work, I and any contractor who is to perform any of the work shall obtain insurance of the kinds and in the limits hereinafter specified against any liability whatsoever occasioned by the work or the performance thereof as follows: (i) comprehensive all-risk public liability insurance in limits of (a) not less than two million ($2,000,000) dollars for injuries and/or deaths of one or more persons in respect of any occurrence; (b) not less than one million ($1,000,000) dollars for property damage in respect of any one occurrence; and (ii) worker's compensation insurance in statutory limits covering all of my, the contractor's and any subcontractor's employees.

Prior to the commencement of the work, I shall deliver to the Agent (i) certificates of insurance naming the members of the Board, the Agent and the undersigned, as parties insured, as our interests may appear, and providing that such insurance will not be terminated unless at least thirty (30) days' prior written notice is given to the Agent by certified mail, return receipt requested, and (ii) satisfactory evidence of payment of the premiums for said insurance for the period of time during which the work is to be performed. At your election, I shall also deliver to you within three (3) days of your request, a duplicate original of each insurance policy.

B. The insurance policies shall be issued by solvent insurance companies reasonably satisfactory to you, and, to the extent obtainable, shall not be invalidated as against one assured by reason of any act or omission of another assured. Such insurance companies shall be authorized to do business in New York and have a policyholder's rating of no less than "A" in the most current edition of Best's Insurance Reports or its successor.

C. I shall pay to you on demand an amount equal to any increase in fire insurance premiums brought about by reason of the work, including extended coverage, vandalism, malicious mischief and surcharges, if any, above the premiums determined by the base fire insurance rate applicable to the Building.

Note: Annexed hereto is an insurance rider of one (1) page, which is made part of this agreement and which definitively delineates the insurance requirements of the contractor and all sub-contractors. All insurance documents must be submitted and the rider must be fully executed prior to the start of any alterations.

7. Required Permits, Certificates and Other Documents.

A. Prior to commencement of the work, I shall deliver to the Agent (i) all applications and permits that may be required to be obtained by me, including a building permit and permits for all plumbing and electrical work including, but not limited to, compliance with all applicable governmental agencies having jurisdiction of the work; and (ii) the names of the licensed architect or engineer, general contractor, and any subcontractors who will be engaged to execute the work and conformed copies of each and every agreement made with such persons.

B. If the work requires an amended Certificate of Occupancy for the Building, I will have an application in the form of an "Alteration" describing the proposed work on file with the New York City Building's Department within thirty (30) days of the Board's written approval of the plans and specifications. This "Alteration" application, if required, shall note that an amended Certificate of Occupancy will be sought. A copy of any such application shall be simultaneously submitted to the Agent. I will file an application for an amended Certificate of Occupancy within thirty (30) days after completion of the work. I shall diligently pursue obtaining an amended Certificate of Occupancy and shall keep the agent informed of the status of this process on a regular basis. No appointments for final Building Department inspection to "sign-off" on the work shall be made prior to the Board, the Agent or its representatives conducting an inspection to confirm compliance with the approved plans and specifications, and the Board and the Agent will have reasonable time and shall be granted access in order to make such inspection.

C. At the completion of the work, I shall deliver to you, in care of the Agent, an amended Certificate of Occupancy permitting residential use of the Apartment and a certificate of the Board of Fire Underwriters, if either shall be required, at the time of the actual construction or any time thereafter, whether I have sold or assigned the Apartment together with such other proof as may be necessary to indicate all work has been done in accordance with all applicable laws, ordinances and government regulations. I will be responsible for the cost involved in obtaining the amended Certificate of Occupancy. I further agree that this agreement will survive whether or not the Apartment is sold and that in the event I do sell the Apartment, I will advise the purchaser of their responsibility if and when called upon to pay their share of the cost of obtaining the amended Certificate of Occupancy.

[ryan_gz]

8. Nature and Quality of Work

A. All alterations and structural changes shall be performed in such a manner and at such time so as not to disturb other occupants or the Building's services. I will immediately discontinue any work in progress upon receiving notice from the Agent or an appropriately designated Building employee that the work is at that time creating a disturbance to any other occupants in the Building. The use of power tools, such as electric hammers or portable electric saws, is expressly not permitted.

B. The proposed alterations, structural changes and materials used shall be of the quality and style in keeping with the general character of the Building as determined by you, the Board, the Agent, your engineer and architects and the work will be carried out by me and my representatives in a proper, expeditious and workmanlike manner.

C. All work shall conform to rules and regulations of governmental authorities having jurisdiction thereof as well as the New York Board of Fire Underwriters.

D. All work shall be performed in compliance with rules and regulations as may be promulgated by the Board, Agent or Superintendent. (Note: Contact your building Superintendent, Mr. Michael Jordan, to coordinate access to the Building for your contractor(s).

E. I shall take and shall cause my contractor(s) and subcontractor(s) to take all precautions to prevent dirt, dust and noise from the work from permeating other parts of the Building during the progress of the work. In connection with such precautions and without limitation thereof, I shall:

I. place, or cause to be placed in barrels or bags, all materials and rubbish from the work, before being taken out of the Apartment daily, which materials and rubbish must be taken out of the Building, at my sole cost and expense, in the service elevator, at times the superintendent shall permit;
II. control all dust from the debris of the alterations either by using green-dust or, if possible, by watering down the construction area as required;
III. install, or cause to be installed, a temporary dust-proof partition to prevent dust or debris from the work from entering the stairwells, elevator shafts and hallways in the Building;
IV. broom-clean, or cause to be broom-cleaned, each night by the contractors or subcontractors after they have ceased their work, the areas of the Apartment in which the work is then being performed, the areas adjacent thereto and any other affected area of the Building;
V. not place or maintain any "street containers" or "dumpsters" for the storage of rubbish outside the building or its environs without the prior written consent of the Agent;
VI. I shall give at least seven (7) days prior written notice to the residents of apartments that are adjacent to, above and below my Apartment of the date on which the alterations will be commenced in order that they will have a reasonable opportunity to secure any personal property in the adjacent premises from damages due to vibration or similar cause resulting from the work; and
VII. I shall recognize that only a designated elevator may be used for the removal of debris and rubbish and only at such times as the Superintendent or Agent may direct. If there is a cost to operate the elevators for my use on an overtime basis, I shall reimburse you for any wages or related expenses incurred in connection therewith.

F. I shall make all appropriate arrangements with the Agent and Superintendent at least one week in advance if any of the proposed work will affect gas, ventilation, plumbing or heating lines when such alteration requires shutting or draining of common risers. I understand that there will be no operation changes made in the Building's central heating, air conditioning or other equipment to facilitate the installation or function of any heating or air conditioning unit or other equipment I may wish to install.

9. Access for Inspection and Additional Obligations

I shall provide continual access to your architects and engineers as well as the Agent and the Building Superintendent and their representatives to observe the work from time to time. I shall make, at my sole cost and expense, all corrections requested as a result thereof. If any portion of the work should be covered contrary to the plans, the request of your architect or engineer or requirements specifically expressed in this agreement, it must, if requested by you or your representative, be uncovered for inspection and shall be replaced at my expense. I shall promptly correct all work rejected by you as defective or as failing to conform to the plans of this agreement whether or not fabricated, installed or completed. I shall bear all costs of correcting such rejected work, including compensation for the architect's additional services made necessary thereby.

If I fail to promptly correct such rejected work, I shall provide you, the Agent, Building employees and other of your representatives with unrestricted access to, and ingress and egress through the Apartment or any portion thereof in order to make repairs, alterations, additions and improvements in and to the Building as may be deemed necessary or advisable by you. Any increase in the cost of such repair, alteration, addition or improvement resulting from the work shall be borne by me and paid to you on demand. If, in connection with any such repair, restoration, addition or improvement, any portion of the Apartment shall be damaged, you shall not be liable therefore unless same is occasioned by reason of you or your agents' or employees' willful negligence. Nothing herein shall limit or waive any of your rights and privileges as set forth in your by-laws and your other organizational documents.

10. Restriction of Continuation

I understand that you reserve the right to stop the progress of the work or to condition or to restrict the continuation of the work (a) should such work in your opinion unduly interfere with the rights of any of the occupants of the Building, (b) if I fail to comply with the terms of the by-laws or the House Rules applicable to the work, (c) if I fail to comply with the terms of this agreement, or (d) if any architect or engineer engaged by you determines that any work performed or being performed (i) is contrary to the plans, or (ii) poses a danger to life, limb or property. My failure to comply with any of the provisions hereof shall be deemed a default by me of the provisions of this agreement and, in addition to all other rights and remedies you may have, you may suspend all work and prevent workers from entering the Apartment and the Building for any purpose other than to remove their tools or equipment provided that such workers are accompanied at all times by the Superintendent or a member of the Building staff. In such event, you may also revoke the permission given to me to undertake the work. If the operation of the Building or any of its equipment is adversely affected by the work, I shall, when so advised, discontinue the work immediately until such adverse affect discontinues.

11. Changing Terms of this Agreement

This Agreement may not be changed orally. This Agreement shall be binding on you, me and our respective legal representatives, heirs, successors and authorized assigns. The terms of this Agreement shall apply to any further alteration or repair I may desire or be required to perform in connection with the work, provided, however, that nothing herein shall be deemed your consent to any such alteration or repair nor a waiver of any of your rights hereunder.

[ryan_gz]

12. Assumption of Responsibility and Voiding of Guarantees and Warranties

If I alter the air conditioning, plumbing, heating or ventilation in the Apartment, I shall assume all responsibility for said alteration and neither you nor the Agent will be responsible for failure of the efficient performance of the Apartment heating/cooling, plumbing or ventilation systems as altered by me. I understand that my alteration may void certain guarantees and warranties which currently exist and which have been made to me.

My assumption of responsibility covers: all work, whether or not structural; weather tightness of windows, exterior walls, roofs, flooring and waterproofing of every part of the Building directly or indirectly affected by the work; and maintenance of all heating, plumbing, air conditioning and other equipment installed, altered or in any way affected pursuant hereto both in the Apartment and in the Building. Neither you nor the Agent will be responsible for failure of performance of building services to the Apartment as a result of the work.

If I shall desire to transfer the Apartment, whether by sale, assignment or otherwise, the Board may require the transferee thereof to (i) assume all of my obligations and responsibilities hereunder and which, by the terms hereof or by implication, survive the completion of the work, and (ii) agree that any subsequent transfer shall be subject to the terms hereof.

If you grant this conditional permission to me to do the work, I understand that you make no representations as to the design or efficiency of the proposed alterations or whether I will be able to obtain the required permits and certificates.

13. Commencement of Work - Duration of Work - Restriction

(a) If permission to do the work be granted, the work will commence on or about and will be finished by no later than one hundred and twenty (120) working days thereafter.
(b) I understand and agree that I shall not begin work until I have received written authorization from you or the Agent and have paid all fees, if any, required to be paid to you or the Agent.
(c) I further understand that I shall not install in my apartment, without written permission, a so-called jacuzzi or similar make tub, washing machine, or exercise treadmill.

14. Default

It is understood that any breach or default by me of any of the terms or conditions of this agreement shall be deemed to be a default by me under my proprietary lease for the Apartment, or if the Building is a condominium, under the condominium by-laws. Accordingly, without limitation of our other rights and remedies, you shall have such rights and remedies as are afforded to you by reason of my default under such proprietary lease or by-laws.

15. Deposit Assuring Performance of Work

As security for the faithful performance and observance by me of the terms, conditions and covenants of this agreement, I submit to you herewith a check payable to your direct order in the sum of $_______, which check need not be held in a segregated account and which will not accrue interest. If (i) I breach any of the provisions of this agreement, or (ii) I, or any person engaged by me to perform the work, cause loss, cost or expense to you or your property, or (iii) you incur any expense or cost whatsoever in connection with the work including, without limitation, any cost or expense as set forth in Paragraph 2 above, you may, at your option, use or apply, or retain the whole or any part of my deposit to the extent required to compensate you therefore and, thereafter, such portion so applied shall be free from any claim by me for its return. Any amount so applied shall be immediately repaid to you by me, on demand, so that at all times the deposit you retain shall be in the amount of $_______ You shall have the same remedies for my failure to repay any such deficiency as those set forth in Paragraph 2 above. If my obligation exceeds the amount of my deposit, I shall be fully liable therefore. If I shall fully and faithfully comply with all of the terms and conditions of this agreement, I understand that my deposit or remaining balance thereof shall be returned to me after completion of the work at such time as the Building is deemed by the Board not to have suffered any damage or diminution in value by reason of the work.

16. Completion of Work - Liquidated Damages

The work shall be completed by no later than one hundred and twenty (120) working days from the start date as noted in section 13, subsection (a) of this agreement and all demolition, reconstruction and installation work which will produce unusual noise which might be disturbing to other residents or that portion of the work which has been identified in the plans as involving "heightened construction noise" shall be completed by no later than thirty (30) working days of the aforementioned start date. If the work shall not be completed on or before such dates, I shall pay to you the sum of $100.00 per day for each day any of the work continues beyond its above scheduled completion date, such amount being the agreed upon sum to compensate you for the costs and inconvenience resulting therefrom.
In the event of the occurrence of any event beyond my control including labor or other strikes, acts of God or weather conditions which, in your opinion, make my continuation of the work dangerous or overly burdensome to you, then you shall so notify me and I shall immediately cease the work and the time period within which I must complete the work shall be appropriately extended.

[ryan_gz]

17. Asbestos

If the work involves the demolition, removal, relocation, or alteration of any walls, ceilings, floors, or electrical, plumbing, heating, ventilation, or air conditioning systems, I hereby agree to do the following at my sole cost and expense prior to the commencement of the work:

(a) retain an asbestos investigator, selected from a list of approved investigators supplied by the Agent, to either:
(i) review the Building's construction and renovation records as well as any prior inspection reports to determine the existence and possible disturbance of any asbestos-containing material ("ACM"); or
(ii) inspect the areas to be renovated to determine the existence and possible disturbance of any ACM.
(b) If the results of the review of investigation in subparagraph (a) above reveal the presence of ACM in a friable condition, but said friable ACM is less than 10 square feet or 25 linear feet, I will present the Agent proof of the investigator's filing of Form ACP5 (Not an Asbestos Project) form. If the results of the review and investigation reveal that more than 10 square feet or 25 linear feet of ACM is in a friable condition, I will present the Agent proof of the investigator's filing of Form ACP7 (Asbestos Inspection Report).
(c) If, in your sole judgment, based upon the results of the review or investigation in subparagraph (a) above, no abatement work is required, I will be entitled to commence the work, subject to all of the terms, covenants and conditions of this agreement.
(d) If, in your sole judgment, the review or investigation in subparagraph (a) above reveals that ACM abatement work is required, I will proceed as follows:
(i) Prior to the performance of any ACM abatement work, I will submit to the Agent the names and qualifications (including any licenses, liability insurance policies and resume) of any asbestos consultants and contractors I intend to use for ACM abatement work, along with the names and qualifications (including licenses and insurance policies) of the contractor's haulers and the licenses of all asbestos supervisors and handlers who are to perform the ACM abatement work.
(ii) Upon the receipt of the Board's or Agent's approval of the consultants and contractors, I will retain such consultants and contractors to encapsulate, enclose, treat or otherwise abate, as appropriate, all friable ACM. Said abatement, as well as the removal, hauling and disposal of the ACM, shall be performed in strict conformance with all federal, state and local laws, rules and regulations.
(iii) In connection with such ACM abatement work, I will furnish the Agent with copies of all reports and tests that are required by applicable laws, rules and regulations, and with a copy of the final report that is to be provided by my ACM consultant.
(iv) In connection with ACM removal and disposal, I will cause the ACM hauler to furnish the Agent with lists of all dump locations to be used, and a certification that the dump sites are EPA approved, and thereafter furnish to the Agent all dump tickets and disposal manifests.

I shall strictly comply in a timely fashion with all federal, state and local laws, rules and regulations pertaining to asbestos control, as the same have been or may hereafter be promulgated, supplemented or amended from time to time prior to and during the work. In addition, I agree to indemnify you and hold you harmless from and against any and all damages, losses, claims, liabilities, fines, penalties, costs and expenses (including, without limitation, attorneys' fees and disbursements) arising out of or in connection with (a) any failure by me or any consultant or contractor retained by me to fully conform to all of the foregoing, or (b) in the defense of any suit, action, claim or violation in connection with the ACM abatement work

(a) All alterations and structural changes (if permitted) shall be performed in such a manner and at such time so as not to disturb other occupants of the Building or the Building's furnishing of services. I will immediately discontinue any of the work in progress upon receiving notice from the Agent or an appropriately designated Building employee that the work is creating a disturbance to other occupants in the Building, as determined by the Board or the Agent in its sole judgment.
(b) The proposed alterations, structural changes and materials used shall be of the quality and style in keeping with the general character of the Building as determined by you, the Board, the Agent, your engineer and architects and the work will be carried out by me and my representatives in a proper, expeditious and workmanlike manner.
(c) All of the work shall conform to the rules and regulations of governmental authorities having jurisdiction thereof as well as the New York Board of Fire Underwriters.
(d) All work shall be performed in compliance with the rules and regulations as may be promulgated by the Board, Agent or Superintendent.

If the foregoing meets with your approval, please sign the enclosed copy of this letter agreement where indicated and return it to me.

INDEMNIFICATION AGREEMENT

Whereas ________________________________________ ("Contractor") is and will be performing certain work (the “Work”) for ______________ (“Residents”) of Stickler Coop Corp. (the “Owner”) managed by Building Management Inc. (“Managing Agent”) pursuant to authorization from the property manager of Managing Agent, the Contractor hereby agrees that the following terms shall apply to all Work performed by Contractor at the Building.

To the fullest extent permitted by law, Contractor agrees to indemnify, defend and hold harmless Owner and/or Managing Agent from any and all claims, suits, damages, liabilities, professional fees, including attorneys’ fees, costs, court costs, expenses and disbursements related to death, personal injuries or property damage (including loss of use thereof) arising out of or in connection with the performance of the work of the Contractor, its agents, servants, subcontractors or employees, or the use by Contractor, its agents, servants, subcontractors or employees, of facilities owned by Owner. This agreement to indemnify specifically contemplates full indemnity in the event of liability imposed against Owner and/or Managing Agent without negligence and solely by reason of statute, operation of law or otherwise, and partial indemnity in the event of any actual negligence on the part of Owner and/or Managing Agent either causing or contributing to the underlying claim. In that event, indemnification will be limited to any liability imposed over and above that percentage attributable to actual fault, whether by statute, by operation of law or otherwise.

INSURANCE PROCUREMENT

Whereas ________________________________________ ("Contractor") is and will be performing certain work (the “Work”) for _______________________ (“Residents”) of Stickler Coop Corp. (the “Owner”) managed by Building Management Inc. (“Managing Agent”) pursuant to authorization from the property manager of Managing Agent, the Contractor hereby agrees that the following terms shall apply to all Work performed by Contractor at the Building.

Contractor shall obtain and maintain at all times during the term of this agreement, at its sole cost and expense, the following insurance (a) workers compensation insurance with statutory limits and employer’s liability coverage of not less than $500,000; (b) commercial general liability insurance with a minimum limit of $1,000,000 per occurrence and $2,000,000 in the aggregate, which insurance shall cover the following: premises and operations liability, products/completed operations, broad form property damage, broad form contractual liability, personal injury and independent contractor’s liability; (c) automobile liability insurance covering owned, hired and non-owned vehicles, with a minimum limit of liability of $1,000,000; and (d) umbrella liability insurance with a limit of $5,000,000 per occurrence and a general aggregate of $5,000,000. Contractor shall, by specific endorsements to its primary and umbrella/excess liability policy, cause Owner and Managing Agent to be named as Additional Insureds. Contractor shall, by specific endorsement to its primary liability policy, cause the coverage afforded to the additional insureds thereunder to be primary to and not concurrent with other valid and collectible insurance available to Owner and Managing Agent. Contractor shall, by specific endorsement to its umbrella/excess liability policy, cause the coverage afforded to the Owner and Managing Agent thereunder to be first tier umbrella/excess coverage above the primary coverage afforded to the Building and Managing Agent and not concurrent with or excess to other valid and collectible insurance available to the Building and Managing Agent.