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Jeff Evenson <br />February 23,2004 <br />Page 2 <br />Section 4 of the Acceptance of Settlement sets forth the procedure by which the City must <br />document the remediation work in order to receive deck remediation for compensation. As we <br />have discussed, the contractors hired by the City will need to strictly comply with these <br />requirements. Thus, the City should include the specific requirements documentation in both the <br />bidding specifications and the contract. <br />Section 7.1 requires that the roofing contractor hired by the City provide a Certificate of <br />Insurance for a Comprehensive General Liability policy naming Beazer East, Inc. as an additional <br />insured. As such, the language of Section 7.1 should also be included in the bid specifications and <br />contract. <br />Section 6.2 requires the City indemnify Beazer East from any damages, settlements, <br />payments or expenses incurred in the event the City pursues a claim against a third party for <br />recovery of additional damages in connection with the now-existing roofing system or metal roof <br />deck. Under this clause, if the City sues a third party with regard to the current roof and the third <br />party brings Beazer East into the suit as a co-defendant, the City would be responsible for any <br />damages, etc. incurred by Beazer East as a result. As a practical matter, even though this <br />indemnification is limited to the amount that Beazer East will be paying the City under Acceptance <br />of Settlement, Section 6.2 makes it difficult, if not outright cost-prohibitive, for the City to bring a <br />suit against a third party. <br />Finally, as noted in our previous correspondence, failure to undertake the deck remediation <br />within the extended time period, after signing this Acceptance of Settlement, may subject the City <br />to a breach of contract suit by Beazer East. In addition, Section 6.4 requires the City to indemnify <br />Beazer East from any personal injury suit resulting from injuries or damage occurring if the City <br />fails to remediate after signing the Acceptance of Settlement and receiving compensation. <br />Please feel free to contact us if you have any questions or concerns. <br />Very truly yours, <br />� <br />la� �1�. quir� <br />Sonya J. Guggemos <br />SJG/cmp <br />Enclosure <br />itRM: 58901 <br />