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HomeMy WebLinkAboutFAAC, INC. 2 - 2006 IN)U:it.~... L'" IL. A-2006-014 \",;O:{f\ ;'.:1,1., i /;:..UCCfL' ~)r,niL ji'~')UR.4I')CE EXPIRE: S - / ~ 0& CLeRK OF COUNCil ----~- DATE. ,;t~ I '-i-o to LEASE WITH OPTION TO PURCHASE AGREEl'vlE.'H WITH WARRANTY SOFTW ARE MAINTENANCE AND UPDATES c: 'fp (?) [;r. Goo et,)t/t.l\ THIS AGREEl'v1.ENT, made and entered into this 6th day of February, 2006 by and between FAAC Incorporated ("FAAC") and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "City"). FAAC and Customer may be referred to individually as a "Party" and collectively as the "Parties." RECITALS A. FAAC assernbles and markets for sale computer hardware equipment for Driver Training Simulator systems, and licenses for use in connection therewith systems software and application software either owned by F AAC or licensed to FAAC by third parties. B. FAAC is willing to lease to City and City is willing to accept from FAAC such hardware and software upon payment to F AAC of the amounts set forth below. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF WORK 1.1. FAAC will design, build, install and maintain and support the following equipment: . One UpgradedVIP-5 Simulator with Instructor Station . One Upgraded VIP-5 Simulator . One Upgraded Scenario Toolbox . One Juice Goose The above equipment shall be hereinafter collectively referred to as "said Equipment" and in effect replace existing equipment by trade-in. FAAC will provide a one-year extended warranty on the equipment. City may purchase the extended warranty package for four additional one-year terms. Said Basic Extended Warranty provides: . Unlimitetl telephone support . Parts repair or replacement . All costs associated with up to two service visits per year . Additional on-site labor at published rates . Three-business day on-site-response time. Santa Ana, CSA FAAC Page 1 2-6-06 FAAC will provide Software and Software Upgrades :0 ensure that the simulator system remains state-of-the-art by providing customers wi:c. new software features (i.e. new vehicle models, weather) developed during each one-year period of this Agreement. 1.2 City will provide the following services in exchange for reduced lease, warranty and upgrade costs: . Demonstration ofFAAC Equipment/Class for Dri\er Simulator Instructors o Taught by a Santa Ana Police Deparrrr.em Driver Instructor using FAAC equipment o Approximately four (4) hours in length o A maximum of three (3) classes per mc~.th o At least thirty (30) days advance notice ?rior to scheduling each class o A maximum of four (4) students per class o Demonstration of simulator at confere:!ces/exhibits as pre-arranged and approved by Santa Anna Police Depar::nent Training Division at no-cost to City. . Development of additional Driving Scenarios for E-\AC o Improvement and/or modification of existing driving scenarios using the scenario building toolbox o Development of a demonstration sce::ario linking the FAAC Driving Simulator with the lES Range 3000 . Development of Driver Instructor's Package for L\.-\C o One Instructor's Manual o One Instructor's Video o One Instructor's PowerPoint 2. TERM a. The term of this Agreement shall commence on the date said equipment is installed at the Santa Ana Police Administration Facility ar:d shall continue for 60 months. However, the City may terminate this Agreement effective 0:: July 1 of any year that the City Council fails to allocate funds for the continued lease of said e.:].uipment for that fiscal year. City shall provide written notice of termination to FAAC at le2.St sixty days prior to the July 1 anniversary date. If said notice is not provided, said Lease Agreement shall automatically continue for an additional one-year term. b. Upon any anniversary date of this Agreement, City may purchase said Equipment at the "Exchange Offer" price listed in PAAC's December 20. 2005 letter to Santa Ana Police Department, attached hereto as Exhibit A, and incorporated by reference. In the event of said purchase option, the principal portion of all lease payments m:de prior to the exercise date shall be credited to the purchase price. c. At the conclusion of the 60 month lease, if allle:lSe payments have been made by City, title to said equipment shall pass to City. d. If City elects to terminate prior to the end of the lease period, said equipment shall be returned to PAAC at City's expense. Santa Ana, CSA FAAC Page 2 2.6.06 3. COMPENSATION a. City agrees to pay, and FAAC agrees to accept as total payment for the lease of said Equipment, a monthly rental fee of $3,076.01. City shall also pay $5000.00 annually (which may be paid in twelve equal payments of $416.67) for software updates. Upon the first anniversary date of this Agreement, City shall pay an an,nual fee of $5,790.00 (which may be paid in twelve equal payments of $482.50) for Basic Extended Warranty. b. Payment by City shall be made monthly, on or before the 15th day of each month, subject to City accounting procedures. 4. DELIVERY 4.1 Delivery shall be made within 120 days following execution of this Lease Agreement by both parties. FAAC will make reasonable effort to meet any delivery date quoted. However, FAAC will not be liable for its failure to meet the quoted delivery date or for any damages caused by delay in shipment, installation or furnishing of hardware or software under these terms where such failure is due to fire, war, civil commotion, labor disputes, failure of transportation, acts of God, loss of power, air conditioning or humidity control or other causes beyond FAAC's control. 4.2 FREIGHT, TITLE, AND RISK OF LOSS. FAAC will pre-pay and bill City for all freight charges. Title to the Equipment will pass to City upon its exercise of the Option to Purchase. Title to Software will not pass to City at any time. Risk of loss will pass to City upon delivery of the Equipment to the City. FAAC will pack and ship all Equipment in accordance with good commercial practices. 4.3 City shall procure and/or maintain insurance on said Equipment for the full insurable value thereof during the entire term of this Lease Agreement, or until City exercises its Option to Purchase and pays the entire purchase price, as set forth in Section 2, above. 5. INVOICING AND SHIPPING ADDRESSES. Invoices will be sent to the Customer at the following address: Santa Ana Police Department Administration Facility Attn: Lt. John Gabelman 60 Civic Center Plaza P.O. Box 1981 Santa Ana, California 92701 Telefacsirnile (714) 245-8007 The Equipment will be shipped to the Customer at the above address. 6. INSTALLATION FAAC shall install the simulators at City facility. FAAC shall have no responsibility to connect hardware to any equipment not furnished by FAAC. Santa Ana, CSA FAAC Page 3 2.6-06 ------ 7. ACCEPTANCE Acceptance of said Equipment shall be accomplished using such test procedures or programs established by PAAC which demonstrate the published capabilities of said Equipment and software identified and listed in the purchase order. P AAC will perform such testing at City site after cornpletion of installation. City shall be conclusively deemed to have accepted said Equipment and software when PAAC demonstrates that the applicable diagnostic or verification program(s) work properly. 8. WARRANTY PAAC warrants that said Equipment and software will be free from defects in materials and workmanship and will conform to P AAC' s applicable specifications for a period of one year from the date of shipment or acceptance, whichever occurs last. Any warranty on individual components extending beyond this period will be honored and transferred accordingly. This warranty is valid only when the products are installed in accordance with the PAAC operator rnanuals provided at the tirne of shipment. Written notice of any breach of warranty must be delivered to PAAC within sixty (60) days of the expiration of the warranty period. This warranty will be voided by movement of the system from the original installation site. PAAC will either repair or replace, at its option, all parts which become defective due to faulty workmanship or materials during the warranty period, provided that said parts are returned to PAAC's depot facility for examination. This warranty does not apply to defects caused by accident, acts of God, misuse, alteration, City's improper integration, installation or maintenance, or to inadequacies of electrical power, air conditioning or humidity control. Except for the express warranty stated above, FAAC grants no warranties either expressed or implied on any FAAC products. City's sole and exclusive remedy in the even that any product does not conform to this warranty shall be the repair or replacement of the item or parts, or refund of paid lease payments, at PAAC's option. Any product claimed to be nonconforming, must be shipped to the repair location specified by PAAC, at City's expense. Such product will be repaired or replaced within a reasonable tirne period. PAAC's acceptance of any product so shipped shall not be deemed an admission that the product is nonconforming, and, ifPAAC finds that any product returned is not defective, such product will be reshipped to City at City's expense. 9. GRANT OP SOFTWARE LICENSE This Agreement is subject to PAAC's "Proprietary Software License Agreement" attached hereto as Exhibit 1. 10. PATENT INFRINGEMENT AND INDEMNIFICATION 10.1 PAAC shall, if notified promptly and given authority, information, and assistance by City, defend any suit or proceeding brought against City which is based on a claim that any Equiprnent or part thereof, furnished pursuant to this Agreement constitutes an infringement of any U.S. Letters Patent. In such case PAAC shall pay damages and costs awarded in such suit or proceeding against City which are attributable to such claims. In case such Equipment is held to infringe any such patent and the use thereof is enjoined, PAAC shall either (1) obtain for City the Santa Ana, CSA FAAC Page 4 2.6.06 right to continue using such Equipment, (2) replace the same with non-infringing equipment, (3) modify the equipment so it becomes non-infringing, or (4) remove the equipment and refund the lease payments less transportation and installation costs. 10.2. GENERAL INDEMNITY BY FAAC. FAAC will indemnify and hold City harmless frorn any and all liability, expense, judgment, suit, cause of action, or demand for personal injury, death, or direct damage to tangible property which may accrue against City to the extent it is caused by the negligence of FAAC, its subcontractors, or their employees or agents, while performing their duties under this Agreement, if City gives FAAC prompt, written notice of any the claim or suit. City will cooperate with FAAC in its defense or settlement of the claim or suit. This section sets forth the full extent of FAAC's general indemnification of City from liabilities that are in any way related to FAAC's performance under this Agreement. 10.3. GENERAL INDEMNITY BY CITY. City will indemnify and hold FAAC harmless from any and all liability, expense, judgment, suit, cause of action, or demand for personal injury, death, or direct damage to tangible property which may accrue against FAAC to the extent it is caused by the negligence of City, its ernployees or agents, while performing their duties under this Agreement, if FAAC gives City prompt, written notice of any claim or suit. FAAC will cooperate with City in its defense or settlement of the claim or suit. This section sets forth the full extent of City's general indemnification of FAAC from liabilities that are in any way related to City's performance under this Agreernent. 11. LIMITATION OF LIABILITY Except for the express remedies stated in this Agreement, FAAC shall have no liability for any of City's damages, including interruption of business or any loss of business or profits, loss due to personal injury or death, or harm to property or expense of City arising out of the performance of this Agreement. 12. DISPUTES The Parties, by their project managers, will attempt to settle any dispute arising from this Agreement (except for a claim relating to intellectual property or breach of confidentiality) through consultation and a spirit of mutual cooperation. The dispute will be escalated to appropriate higher-level managers of the Parties, if necessary. If cooperative efforts fail, the dispute will be rnediated by a mediator chosen jointly by the Parties within thirty (30) days after notice by one of the Parties demanding non-binding mediation. The Parties will not unreasonably withhold their consents to the selection of a mediator, will share the cost of the mediation equally, may agree to postpone mediation until they have completed some specified but limited discovery about the dispute, and may replace mediation with some other form of non- binding alternative dispute resolution ("ADR"). 13. DEFAULT AND TERMINATION 13.1 DEFAULT BY A PARTY. If ei.ther Party fails to perform a rnaterial obligation under this Agreement, the other Party rnay consider the non-performing Party to be in default (unless a Force Majeure causes the failure) and may assert a default claim by giving the non- performing Party a written and detailed notice of default. Except for a default by City for failing Santa Ana, CSA FAAC Page 5 2-6-06 to pay any amount when due under this Agreement which must be cured immediately, the defaulting Party will have thirty (30) days after receipt of the notice of default to either cure the default or, if the default is not curable within thirty (30) days, provide a written cure plan. The defaulting Party will begin implementing the cure plan immediately after receipt of notice by the other Party that it approves the plan. 13.2 FAILURE TO CURE. If a defaulting Party fails to cure the default as provided above in Section 13.1, unless otherwise agreed in writing, the non-defaulting Party may terminate any unfulfilled portion of this Agreement. In the event of termination for default, the defaulting Party will promptly return to the non-defaulting Party any of its Confidential Information. 14. CONFIDENTIALITY CONFIDENTIAL INFORMATION. During the term of this Agreement, the parties may provide each other with Confidential Information. Each Party will: maintain the confidentiality of the other Party's Confidential Information and not disclose it to any third party, except as authorized by the disclosing Party in writing or as required by a court of competent jurisdiction; restrict disclosure of the Confidential Information to its employees who have a "need to know" and not copy or reproduce the Confidential Information; take necessary and appropriate precautions to guard the confidentiality of the Confidential Information, including informing its employees who handle the Confidential Information that it is confidential and is not to be disclosed to others, but these precautions will be at least the same degree of care that the receiving Party applies to its own confidential information and will not be less than reasonable care; and use the Confidential Information only in furtherance of the performance of this Agreement. Confidential Information is and will at all times remain the property of the disclosing Party, and no grant of any proprietary rights in the Confidential Information is given or intended, including any express or implied license, other than the limited right of the recipient to use the Confidential Information in the manner and to the extent permitted by this Agreement. 15. INSURANCE 15.1. Prior to undertaking performance of workunder this Agreement, Seller shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: 15.1.1. Commercial General Liability Insurance. FAAC shall maintain commercial general liability insurance naming the City, its officers, agents, volunteers, and employees as additional insured(s) and shall include, but not be limited to protection against clairns arising from bodily and personal injury, including death resulting there from and damage to property, resulting from any act or occurrence arising out of FAAC's operations in the performance of this Agreernent, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting there from, and property damage, in the total. amount of $1,000,000 per occurrence. FAAC shall supply City with a fully executed additional insured endorsement in substantially the form attached hereto as Attachment 2 to this Agreement upon execution of this Agreement and shall be approved in form by the City Attorney. Santa Ana, CSA FAAC Page 6 2.6.06 15.1.2. Worker's Compensation 1nsurance. 1n accordance with the provisions of Section 3300 of the Labor Code, FAAC is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, FAAC agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. 15.2. The following requirements apply to the insurance to be provided by FAAC pursuant to this section: . (i) F AAC shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ij) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved in form by the City Attorney. (iii) Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. 15.3. IfFAAC fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not effect FAAC's right to be paid for its time and materials expended prior to notification of termination. FAAC waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 16. GENERAL 16.1. TAXES. The Equipment purchase price does not include any excise, sales, lease, use, property, or other taxes, assessments or duties, all of which will be paid by City except as exempt by law. If FAAC is required to pay any of these taxes, FAAC will send an invoice to City and City will pay to FAAC the arnount of the taxes within forty-five (45) days after the date of the invoice. City will be solely responsible for reporting the Equiprnent for personal property tax purposes, and FAAC will be solely responsible for reporting taxes on its income or net worth. 16.2. ASSIGNABILITY AND SUBCONTRACTING. Neither Party may assign this Agreement without the prior written consent of the other Party. FAAC may subcontract any of the work, but subcontracting will not relieve FAAC of its duties under this Agreement. 16.3 WAIVER. Failure or delay by either Party to exercise a right or power under this Agreernent will not be a waiver of the right or power. For a waiver of a right or power to be effective, it must be in a writing signed by the waiving Party. An effective waiver of a right or power will not be construed as either a future or continuing wai ver of that same right or power, or the waiver of any other right or power. 16.4. SEVERABILITY. If a court of competent jurisdiction renders any part of this Agreement invalid or unenforceable, that part will be severed and the remainder of this Agreement will continue in full force and effect. Santa Ana, CSA FAAC Page 7 2-6-06 16.5. INDEPENDENT CONTRACTORS. Each Party will perform its duties under this Agreement as an independent contractor. The Parties and their personnel will not be considered to be employees or agents of the other Party. Nothing in this Agreement will be interpreted as granting either Party the right or authority to make commitments of any kind for the other. This Agreement will not constitute, create, or be interpreted as a joint venture, partnership or formal business organization of any kind. 16.6. HEADINGS AND SECTION REFERENCES. The section headings in this Agreement are inserted only for convenience and are not to be construed as part of this Agreement or as a limitation of the scope of the particular section to which the heading refers. This Agreement will be fairly interpreted in accordance with its terms and conditions and not for or against either Party. 16.7. GOVERNING LAW. This Agreement and all questions relating to is validity, interpretation, performance, and enforcement shall be governed by and construed in accordance with the laws of the State of California. Both parties further agree that Orange County, California shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 16.8. ENTIRE AGREEMENT. This Agreement, including all Exhibits, constitutes the entire agreement of the Parties regarding the subject matter of the Agreement and supersedes all previous agreements, proposals, and understandings, whether written or oral, relating to this subject matter. This Agreement may be amended or modified only by a written instrument--- signed by authorized representatives of both Parties. The preprinted terms and conditions found on any Custorner purchase order, acknowledgment or other form will not be considered an amendment or modification of this Agreement, even if a representative of each Party signs that document. 16.9. NOTICES. Notices required under this Agreement to be given by one Party to the other must be in writing and either personally delivered or sent to the address shown below by certified mail, return receipt requested and postage prepaid (or by a recognized -courier service, such as Federal Express, UPS, or DHL), or by facsimile with correct answerback received, and will be effective upon receipt: PAAC: PAAC Incorporated Attn: Kathy Studer, Contracts 1229 Oak Valley Drive Ann Arbor, Michigan 48108 FAX 734-761-5368 CITY: Santa Ana Police Department Attn: Lt. John Gabelman, Training 60 Civic Center Plaza P.O. Box 1981 Santa Ana, California 92701 FAX 714- 245-8007 16.10. COMPLIANCE WITH APPLICABLE LAWS. Each Party will comply with all applicable federal, state, and local laws, regulatit;ins and rules concerning the performance of this Agreement or use of the Equipment. Santa Ana, CSA FAAC Page 8 2.6-06 16.11. AUTHORITY TO EXECUTE AGREEi'vfENT. Each Party represents that it has obtained all necessary approvals, consents and authorizations to enter into this Agreement and to perfonu its duties under this Agreement; the person executing this Agreement on its behalf has the authority to do so; upon execution and delivery of this Agreement by the Parties, it is a valid and binding contract, enforceable in accordance with its tenus; and the execution. delivery, and perfonuance of this Agreement does not violate any bylaw, charter, regulation, law or any other goveming authority of the Party. IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the date first above written. ATTEST: CITY OF SANTA ANA f2d~ DAVIDN.REAM City Manager ca. PATRICIA E. HEALY Clerk of the Council APPROVED AS TO FORM: JOSEPH W. FLETCHER City Attorney \.-/ '\, By: /: \, \ \ I' \j'::A, Laura'Sheedy Assistant City Attorney , ~__ l: {\._( I I FAACINCORPOR~TED K T FLOSKY Exe uti ve Vice Presi ID # 38-2690_ Santa Ana, CSA FAAC Page 9 2-6-06 FAAC L----JNCORPORA TED 1229 Oak Valley Dnve Ann Arbor, MI48108 Phone: ( 734) 761.5836 Fax: (734) 761.5368 WWW.faac.com ATTACHMENT 1 FAAC PROPRIETARY SOFTWARE LICENSE AGREEMENT This Agreement is executed and entered into as of 6 February 2006, by and between FAAC Incorporated, a corporation organized and existing under the laws of the State of Michigan, with its principal place of b)Jsiness at 1229 Oak Valley Drive, Ann Arbor, Michigan 48108 and City of Santa Ana, a charter city and mimicipal corporation organized and existing under the Constitution and laws of the State of California with its principal place of business at 20 Civic Center Plaza, Santa Ana, California 92701 ("Licensee"). Licensed Software: FAAC Software Name Version Emer$!encv Vehicle Simulation Software To be established upon delivery. Scenario Toolbox Software To be established upon delivery. Use of the Software listed above is subject to the terms and conditions hereinafter set forth. 1. License GrantlUse A. Licensee acknowledges that the Software and related software manuals are the property of FAAC and that FAAC intends that Licensee will use the Software and related software manuals only under the terms and conditions of this Agreement. For valuable consideration, receipt of which is hereby acknowledged, FAAC does hereby grant to Licensee a royalty-free. nonexclusive license to use the FAAC Software on the system designated above. FAAC does further hereby sublicense, to the extent permitted, Licensee to use certain Software licensed to FAAC by other vendors, also only on the system designated above. All use of all Software is subject to the terms and conditions of this License Agreement. B. Use The license granted hereunder conveys to the Licensee the right to use the Software only on the designated system as specified above. For purposes of this agreement, the System is defined as the computer system used to execute the program code generated by the Software. C. Assignment This license and the applicable FAAC Software may not be assigned or orherwise transferred to or used by another party without prior written consent from FAAC. D. Export Licensee agrees that it will not in any form export, re-export, resell, ship or divert or cause to be exported, re..exported, resold, shipped or diverted, directly or indirectly, the Software or a direct product thereof to any country for which the U.S. Government or any agency thereof at the time of export or re-export requires an export license or other governmental approval without first obtaining such license or approval. II. Copies A. Copyright Notice Licensee acknowledges that FAAC claims copyright in the United States on the Software and manuals. Licensee will maintain FAAC's copyright notice on the Software and manuals and will mark all authorized copies of the Software and manuals with a copyright notice indicating FAAC's ownership in such manner as FAAC may designate. Placing of such copyright notice shall not be deemed a publication or placement in the public dornain. B. Limitations Licensee agrees that it shall not print or copy, in whole or in part. in any media, any Software under this license except for backup and archival purposes. Licensee agrees that title to the original copy of all Software furnished and all copies and modifications thereof made by the Licensee are and shall remain in FAAC. C. Proprietary Notice Licensee agrees to include FAAC proprietary notice on all copies, in whole or in part, and in any form made by the Licensee under this license. III. Term This license is effective from the date of execution by FAAC and shall remain in force until cancelled by reason of the Licensee's failure to comply with any of the terms and conditions set forth herein, and subject to the cancellation provisions in Paragraph IX. Licensee's obligation hereunder with respect to maintaining confidential information shall survive the cancellation of this license. IV. Unauthorized Use ofFAAC Software or Licensed Software Any use of the Software not in accordance with the express provisions of this license is unauthorized. V. Protection and Security F AAC represents that the Software constitutes confidential information and Licensee agrees not to disclose any Software in any form to any person other than FAAC or the Licensee's employees having a need to know without prior written consent from FAAC. Furthermore, Licensee will use its best efforts to keep all such information confidential, and shall use all reasonable measures to prevent any unauthorized use, copying, publishing, reproducing, or disclosure of Software. VI. Software License Rights of F AAC Nothing contained herein shall give Licensee any interest of any kind in the Software except the right to use the Software in accordance with the terms of this license. VII. Patent and Copyright Indemnification A. Defense of Claims. Costs and Damages Subject to the limitation of liability contained in Paragraph XII, F AAC will defend at its expense any action brought against the Licensee to the extent that it is based on a claim that the Software, used within the scope of this license, infringes upon a United States patent or copyright, F AAC will pay any costs and damages finally awarded in such suit or proceeding against the Licensee which are attributable to such claim; provided, prompt notice is given to FAAC and FAAC is allowed full control of the settlement of any such claim. and Licensee provides all reasonable assistance at no cost to FAAC. B. Infringement Should the Software become, or in FAAC's opinion be likely to become, the subject of a claim of infringement of a copyright or patent, FAAC may at its option (i) procure for the Licensee the right to continue using the Software, (ii) replace or modify the Software to make it non-infringing while providing the same functionality. or (iji) if the right to continue cannot be reasonably procured or the Software cannot be reasonably replaced or modified, then terminate the license to use such Software and refund the purchase price of the software and the hardware whose operation depends on such software. less depreciation at 20% per year. C. Limitation on Liability FAAC shall have no liability for any claim of copyright or patent infringement based on: I) Use of other than the latest unmodified release of the Software from F AAC if such infringement could have been avoided by the use of the latest release of the Software, provided that the Licensee is notified by FAAC that the earlier release of the Software is infringing, the Licensee is provided with a later release of non-infringing, compatible Software, and the Licensee elects to continue using the infringing Software; or 2) Use or combination of the Software with any non-FAAC programs or data. F AAC shall have no liability for any claim of copyright or patent infringement where the claim arises out of special requirements of the Licensee or is the result of special treatment or use to which the Licensee or others apply the FAAC Software. This Paragraph VII states the entire liability ofFAAC with respect to infringement of any copyrights or patents by the Software or any parts thereof. VIII. Injunctive Relief; Waiver The Licensee agrees that any failure to comply strictly with the terms of this License Agreement will cause irreparable harm to FAAC, and that FAAC is entitled, in addition to any other rights and remedies it may have, at law or in equity. to an injunction enjoining and restraining the Licensee from continuing to use the Software and/or from doing any such act and any other violations or threatened violations of this license. Licensee agrees that Seller's waiver of breach of any provision of this license shall not be deemed waiver of any preceding or succeeding breach of the same or any other provision of this license. IX. Cancellation Any failure by Licensee to comply with the obligations imposed upon Licensee by this License Agreement shall be deemed to be a Default. In the event of a Default, FAAC may, after giving thirty (30) days written notice to Licensee, cancel any or all of the licenses granted hereunder, unless the latter corrects such Default within such thirty (30) day period. X., Return on Cancellation Within thirty (30) days after the cancellation of the license granted hereunder, Licensee shall deliver to FAAC all Software and copies thereof, or if this is not possible, shall destroy all Software and copies thereof and so certify in writing to F AAe. XI. Warranty A. General Warranty Software will conform to FAAC's DTSrM product specification prevailing at the time of the shipment. F AAe will correct all reported substantial non-conformities in unaltered Software for a period of one (1) year from date of shipment, provided such reports are made in accordance with FAAC's standard reporting procedure and such non-conformities are confirmed by FAAe. Correction of non-conformities may, at FAAC's discretion, consist of any combination of the following: written instructions for installing minor patches, automatic patch capability on Documentation to reflect operating limitations provided that such limitations do not limit the specified guaranteed performance of the Software. B. Warranty Limitation The express warranty stated above is in lieu of all other warranties, and FAAC disclaims all other warranties, either express or implied, including all implied warranties of merchantability or fitness for a particular purpose, and the stated express remedies are in lieu of all other remedies, liabilities or obligations of FAAC for damages including, but not limited to, incidental, indirect, special, or consequential damages, such as interruption of business or any loss of business or profits, loss due to personal injury, or harm to property, or any expense experienced by the Licensee or his customer arising out of any defects in or failure or inadequacy of performance of any product furnished by FAAC hereunder. XII. Limitation of Liability FAAC's liability to the Licensee for damages hereunder. excluding any liability for copyright or patent infringements, regardless of the form of the action, shall not exceed the charges paid by the Licensee for the particular licensed Software or related material. FAAC's liability to the Licensee for damages for copyright or patent infringement shall not exceed the purchase price of the equipment incorporating such licensed software. No action, regardless of form, arising out of the transactions under this license may be brought by Licensee more than one (1) year after the cause of the action has accrued. XIII. Rights in Data For U.S. Government Customers Only: This License Agreement is entered into pursuant to DFARS 252.227-7013(c) and FAAC is authorized to apply the Restricted Rights Legend to all computer software and related software documentation identified on the first page of this Agreement. FAAC understands and agrees that any modifications to the computer software and related documentation listed on the first page. which are made at Government expense, shall be furnished, if required, subject to Unlimited Rights. XN. General A. In case anyone or more of the provisions contained in this license shall, for any reason, be held to be invalid, iIlegal, or unenforceable in any respect, such invalidity. iIlegality or unenforceability shall not affect any other provision of this license, but this license shall be construed as if such invalid, illegal, or unenforceable provision had been deleted. B. Additional FAAC Software products, Licensed Software products, or Simulators may be added to this license at any time by mutually acceptable additions to the lists of software in the first paragraph above. C. The headings contained in this license are for reference only and shall have no substantive effect. D. The Licensee's remedies in this license are its sole and exclusive remedies. E. The Licensee acknowledges that it has read this license, including all printed language, that the Licensee understands it, and agrees to be bound by its terms. and further agrees that it is the complete and exclusive statement of the agreement between the parties, which supersedes all proposals, oral or written, and all other communications between the parties relating to the subject matter of this license. F. The laws of the State of Michigan shall govern this agreement. Licensee: Signed: Signed: Name: Title: Executive Vice President Title: Date: 2/1/2006 Date: ATTACHMENT 2 ADDITIONAL INSURED ENDORSDfENT FOR COMMERCIAL GENERAL LIABILITY POLICY Insurance Company This endorsement rnodifies such insurance as is afforded by tb: provisions of Policy # . relating to the following: 1. The City of Santa Ana, 20 Civic Center Plaza, Santa .-\!la. California 92701; its officers, employees, agents, volunteers and representatives are named :lS additional insureds ("additional insureds") with regard to liability and defense of suits arising from the operations and uses performed by or on behalf of the named insured. 2. With respect to claims arising out of the operations and uses performed by or on behalf of the named insured, such insurance as is afforded by this policy is prirnary and is not additional to or contributing with any other insurance carried by or for the benefit of the additional insureds. 3. This insurance applies separately to each insured against whom clairn is made or suit is brought except with respect to the company's limits of liability. The inclusion of any person or organization as an insured shall not affect any right which such person or organization would have as a claimant if not so included. 4. With respect to the additional insured, this insurance shall not be cancelled, or materially reduced in coverage or limits except after thirty (30) days wrir.:en notice has been gi ven to the City of Santa Ana, 20 Civic Center Pla2a, Santa Ana, California 92701. (Completion of the following, including countersignature, is required to make this endorsement effective.) , this endorsement form as a part of Effecti ve Policy # Issued to Named Insured Countersigned by Authorized Representati ve Feb 14 06 12:58p San~a Ana Police Dep~ ORATE 714 245 8088 p.3 ~:C01'TB. 2.201'161'n10:02~"'nM'~ IN(ORP Dro~ ~lnd'l \l\'a-rd !l20 A .oe: of /II . .. = ACORD. CERTIFICATE OF LIABILITY INSURANCE QP1D 9~ DllTEfl.llMtOPf"/'('l"rl r~-.~ 02/02/05 !'!lOCU"" THlSCERTd'lCATE ISISSU~D AS A I.lATT"R of INFORMATION ON~ V ANI> CONfj;.RIi NO RIGI1TS UPOIl THE CER l1fI(;A TI: lfyl:aXl"t of un Ar:bo:;, ItJjC HO~D"1l- THIS CERTIFICATE llOE8 NOT _NO. EXTEND OR 301 . Natn ~treet A~ TE" THE COvellAljE AFFORPED BY THE Po~lclf5 BE~OW. j\an .I\.1:bo>: MX ~e:l.o, ~hone:7a4-741-0D44 Fax;7!'-741-1850 INSURERS AFFORDING COVERAGE NAlC M lN8UR~a IJlIS\..IR~AA 1111 twarsz. oIoAlIIul:J.n.:r..... 0.. IN3IJ~Ra !'AAC, Inc. Il"lSURC~ C :l.22g 0",", V"llelr Drive 'I'lS:U~RO Al:r,1I:L A:r;bor JliSX t 108 1N&~r.!~ NO 145 oeP 4w M P 2 COVl'RAGIlG lHF POll,-IF.~ nF ~1\I~AfIIJ:f' lrS1r;~ rlW"^",,' HAVf J'f;f;N 1~Sl.IPD TO Tlf211\f8l-~r.o ~ ~vF r(l~ THr PI1\ rCY PfRlOO JNQICAT'F.O NOiWlTHSTANOINI) MV flC:QUl~FMfWl', TEj;M(~ CI:JIIlPITl(:l~ Of ~y CQ\l1liiA(T rJR orneR pOl:~fONTvYlT't1 ~Sf't:C;T tOVllJ1ICH THIS 'ErmfICA~ ~'I' !l~ I::;SUfCI Of! MAY /'eRtAIN. TNt: INSURMCIi: AF'f'~p ~y M ~lCI~ OES<:FlIae.O ~I'" IS SUBJECT 'fa. A\.l. ~ Te~!.. f'4C\..USlef& ~ CON01TI~" 01 ~a-I 1'(JI.ICleS AGc;.~c.,t,Te 1..IMITB .':1HO\NIIl""""'V KA,VE. ~l:.N F.l~OlJcep 1:1'1' P~O 'VI...... ~ 'rIPE Q' .NSu"NC' POI.ICYr"lIJItlD~ CAre -i/W,' OAlE MMfllDtv"t'\ ~TS , ~Ei~ ~~m' EACH OCCV~tQCE o';;:1.,ODD,OOO A lC X_ COMh'IEIoICIAL GEr-ERAl LI~I~ ~Ty TIlO:!lol.:J". 015/01/0" aS/aVO" !,~~j~~~~L .L~.6.0! ol!.'!-,__ ..:J ",A<MS """E [.iI OCtUO ~~!-~l~_o~.~l._ '10.000 -. ~""'u.__.__ - PltRSQtolAl&14:JVl'N.)JR!Y f 1/OOD",000 - Gt'NEAl'LN:".c:.FlI=~",Te , .2,ODD,OOO ~ o*.GGh'P("J.TP 1,[Mlf"'PPLIfF:~ PFIOOlJCTS. CtrJlllClP AGr. 11,000,00. POI-ICY n ~~ n ~OG Al.1fDMOBILI'iLlAlllITY cor.1BlNEO SINO..E: LIMIT 11,000,000 - A ~ AfIt'f.wfO 802101354 06/01/06 0"/01/06 fElectll$lrti ALL O'M'ISD AUTOS -,. aoDII.YIr'UlRY ., SC....,;DUlfO 1\UTOS IP"lfI'llI'Oo"I; - ~ HIPEQ,.mos 9Ol)1\''r jN.JJR1' (~~Ilal':l<'l/)nll , t-!- "'C~OAI.IT08 f- , PRc1PEPTY O"'MAI"...E , IF>orocclcbi1ll G~1I161L1T" Al.JTo ora. 'r . EA JlCCI(X%NT , RANYAUllJ ~~Rm ~ACC --,--------, AGO I aCliISJUMBRI1l-LA LI4!lILITV EACf1 Or.CU'-NCi $1,DDO,OOO A ~ 0<:"" 0 CV'M' w.oE R02100643 OS/01/05 05/01/06 .Ar:'tQA~Tr.: 11,000 000 I !xi ~"""T\...t , :x: f':eT~NtION UO,OOO , WQJtl4!RI CC1~NSAl'1ON AND ::g: ITO~'r'L~ I 1'.1{ A -=I\IJ"LcyI!It~'L"1JlL1'JY 1lIVA:Z10;!l310 , 05/01/05 OS/n/06 \ 50Q ,QOO ,.,~ F'llt~"rr.'tW,f'AATWRIP.lf~r.UTlve E L ~'HAC.C:IOENT Of'FICl!:~ttJeMeE~ E)t':'\.UCGtn t:: L OISeASE. ~A !!:MP~ayl'~ ~500,DOO {fYO~ill..~r.rll>.LNtor \ 500 ,000 SPE'-1Al. ~VJSIONS liltlOW' I<:L Ol~.POllCv~IMI'l" ""'.~ I . ~nn ' , ~ RM D9Cftll"nON <.lC" .g1"~naNS ,I.QCA r.......- I VI:;,.H~L II ~"'I:j.~.lgN. IWQfP.v &NDQIU.1il iNT' lrIiCUtol. ~O\llSIONS . , "" '.......... n<> :~v rL IJ'he Cit.y ot SOUlta. Ana.. it,. o.ffice.r,ll, ~loyee8, a'!l~Dt.., volub..-teeza ",,,l. ;/3 .rep>:esentativ",.. &:re nalled ... a4d1 t1on..l ia.q.reds with "'~9~ds to the BeJ1era.l n , "ft, ,..."bilitll _ly. ,..---.- .. "a a Stitt~hcedy J..",-,.:>lant City. Attorney CI!!:RT1FICATl5' HOLDeR! CANCEU..ATIOt4 Santa ADa ~ol~~e Depakbmeut Admin18~r.ttOD ra~i~i~y :tot. .toAn lJabe1.1aap. 60 ci~ie ~cnter P~a3a Santa llna CA 92701 ~A"l tH~ Atl( or DIE .ABO\Il OE'H:R"P ~cLICII!.." CANCELl.Ec ",f:ORIIi TP1~ II!X,,""'''ClN 'D....~'ntJINICII,THR1.~,.lIURIiRWlI...lNtlI!A\lCltTCMAI/. 3D t1AY1-WiM'TWN NOTICE ro ll1E Ciill'JWlICAT!! "Ol..~ ".....ec fC TH!S t.EJ;T, su'l'lIAILulIlE TO DO 00 ""ALL. lMl"OSe l<<l aaUMTlDN! OR u,.8IU'l'Y Cl"" ANY KIND ~o~ Tt1lI!: INlIl.lF~Eil'I. ITS AGI!NY3 o~ RB"~IENTATlva. . . "..~ ACOflO 'l6 (2DD1101It) . ACORI> CO!>PORATION 1BBB e ,l.. ' RECli:IVE:D TI!'Ii: FDl. 2. 9'521'lM PRINT TIME FUI. 2. 'l'5aI1M F@b 14 06 12:58p Santa Ana Police EE. 2.2006iWI0:02RM-.t r8e~ IN~O@EO~8!sQ D@pt 714 245 80S8 Wdb'"'' -.t 'El3..r-~..:14~.3AI3~..;~ p.4 IMPORTANT It lhe cetlificate holdor is iln ADDITIONAL IfIl5U~ED, the policy(iGs) mud be ll'ldon;ed. A stlltemenl on !his certificate dces not confer ~ghls 10 thll cartllicale holder ., lieu of such endc,.,emsnt(s). If SUBROGATION IS WAIVED, SllbJ8ella thll te/ms an" l:llI1dltlons of !he policy, cllllJWl policies milY require an endorsement. A statement on Ihis certItlcate doe5 not confer righls to tl1e certlflC8111 holder '" lieu of suc:h endorsement(s). DISCI-4IIl1ER The Certlf'lC3le of In5urance on !he lWIIer5e slde of Ihis form doe. nol CDf1slltute e conlr.lct between !he issuf19 InSUl'er(s). BUlhoriz!lrl repres8l1lativeor producer. andlhe IiIlrtilicate halder, nor dOBS It affirma~yely or negatively amand, extehd or allllr the r:ovelllge Il!'lorded by lhe pollclBS lilillld l/18raon, APPROVED AS TO FORM ._~ z) 1 Laura ., " _'._ .,~j , ~ssistanl .......,;,y aw,,: ,j~Y AcaRO ZIlzoa11U1II SB/SB ::!J\ld ~!IVlOD~N05!100 BEELIHPEL Bt:Pt 9B~~/tB/~8 ,Feb ,14 06 12:58p Santa Ana Police Dept 714 245 80S8 p.5 FE8. 2. 2005~lj.jHJ: 0<;~2..t FOO~ INt;~O~I~Q!ii"'" """'''''Wd6~';2' ""';'i''':a3J' ....r~~.L14~3;;i~.:.a~~.---- p.TTACHMBNT :l ADnmaNAL lNSTlR'Rn "'Nnn>>l:~ :!lOB. mMMRlI~ o:aNll1UL LlAJJturY roLrCY Iuunnoe CODIpIllY ~~....;.\. ~_... 'I.\.. .. ~ Thi~ ~t mldfill/J Slldliuurpz II i, ~ by Ibo pmyi.~iv~ ofPc1lay ~........... .......,~..,.... ra1aIlq lllliul t'oIlowing; L, Tile City of :lct! A:l1a, ZO CiVic 'Qeater Plall, SaIltI An-. CalifllIlJilL 92701: il5 QffiOIl.'ll. IlDlplD}'lIClI. .gJ!IIIlll, 'Vo1untllcili 8lld trJilrelllllllltl:VlIll m nll1lCd.. Wdlti.......1 inIlmecla (lIadd1ttllJl&l l'nJIll'Cdt") wiijl regaft! to lillbility 8lIlid#CIl8O of luih arili1lg from Ihe oplll'lltlOll8 :mil QBeS pmfllClnOd by or on bchlllf of rbe nemtXlll\ii.U'cd; :I. W1lhreQwlOclBims IIJi_DlItDithc~olllllld UiDlpadODDeCl byDroa bchlllfQfiho lUIllled:lllalmld, IlIcb 11lllUl'l\llollu illflgrdlld bylhll polloy h primllry lIIId ill DOl addidoaal to OJ cOl1tl1butill.g willl11DY othBr insurance c~ by or fur the boncfit Df tbCIldditiOlll1 i_d!. 3. 'l1Us iuSl1l'BllOll ~llIlIDplllf.lzlY 10 *11 inB1Il1ld aplnct wholn claiDl is ~ or suit iJ bI:ou.ehl CJ.llOpt with reepgt:t to tha 17oJnPllllY'llimlll of liability. ~ j""hl';"lI of lllIY penon or orPDizaliClO IlIllllln._ d1,lIl1a1i .nect 8I\Y rlgb.t whlcllllUCh person or orpniution wau14 have II II cJlllmInt If Dol sa 1Dc1u&d. 4. Wi!b te&poGllo Ibo PlitWnll ~ 1hJlIln~a Ilbll!ll1ot b8 a_U~ or JlJ8t!l;ri1llly Mda=d ill ~ or limllS llIoept "lhUt~(30) lilY" wrltt8l1llOlice llIIB been 1Ii~ to l'hIl City of SlIIIl&An.I, 20 ClIIk Center P1aza. $aQta Ana, Califumia \12701, (C""'IpI'"ioll of IhCI follllWiJII, iDlllllllill& COIU1l<<'iigaalUre. Is required to make this IlIllIonamtlIIt efftl:l!.ve.) Effective \ - '1.- ~..... 'llDJ clIl!orsCllllll1t {OIlDllU pan of =~~~;\~~.::: N~liIsU.rlld ::.'~C-~, "~4 C~by:.,~,,;.," Ail~~rclllllll8tlV1l . \. PPROV ED AS TO FORM ___i2!-3(3 Laura Slitt Sheedy A'il>l[;tant City Attorney- S01l0 39\1d ~NDSllOCl 8~U T~~~EL 8t:pT qBBl/TBllB \ ACORD. CERTIFICATE OF LIABILITY INSURANCE OPID9Z I O...fEIMMIDDIYYYYJ FAAC--l 08/28/06 P~ODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Hylant of Ann Arbor, LLC HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 24 Frank Lloyd wright Dr J4100 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Ann Arbor MI 48105 , Phone: 734-741-0044 Fax: 734-741-1850 INSURERS AFFORDING COVERAGE i NAIC# .-., 'NsuRED 4- ddJh- Dlf I'NSURER" St ..~17nv."u 00.., 'n" I FAAC, Inc. '''SURERB , IES Interactive A division of : FAAC, Inc. INsuRERc 1229 Oak Valley Drive INsuRERD 1 Ann Arbor MI 48108 1 INsuRERE COVERAGES THE POLlC,ES OF ,NSURANCE LISTED BELOw HAVE BEE" ,ssUED TO THE 'NsuREO NAMED ASOVE FOR THE POUCYPERIOD,NDICATED,NOTW,THSTANOING ANY REQUIREMENT,TERM OR CONDITION OF A1<Y CONTRACT OR OTHER nocuMENT w,TH RESpECT TO wHICH THIS CERTIFlCATE MAY8E ISSuED OR MAYPERTAIN,THE INSuRANGE AFFORDED BY THE POLlCIE5 DESCRIBED HEREIN ISSUBJECTTOALLTHETERMS,EXCLUS'O'lSA'lOCONDITIO'lSOFSUCH POLICIH,AGGREGATELlMITSSHOWNMAYHAVEBEE~REDVCEDBYPAIDCLAIMS i~~ r:S~~ --- -,---- PDLlCYEFFECnV!; POL.'CYExPIIlAnO~ TYPEOFINSUIU.NCE POLICY NUMBER O...rE(MMlODNY) O...n;MMlDD/YY ,.~ ! ~ERALlIABILITY EACH OCCURRENCE I, 1,000,0_0_Q. .- , A ! X DAMAGETQRENTEO -"- CDMMERe'AL"ENERAl.LIAEILlTY TE02101425 05/01/06 05/01/07 PREMISES (E. """u,"ncol , 250,000_ P CLA'MSM^DE C!:J QCClJR .", MEDExP(A"yooopo"on) :, 10,000 - -. PERSONAL&AOVINJURY , 1,000,000 - --. , i GENERAL AGGREGATE I, 2,000,000 --,- ! GEN'L-AGGREGATE LIMIT APPL'ES PER PRODuCTS COMPJOPAGG I, 1,000,000 I POLICY -h ~:6; ~ LOC ------ ,"'UTOMOBILELIIIBILITY COMBINED S'NGlE L1M'T , IEaaoc;don<) , 1,000,000 A ~ANYAl>TO TE02101425 05/01/06 05/01/07 ---- , ALL OWNED AuTOS BOOILYINJURY ~ , ------:5CHEDl>LEDAUTOS IPo'pe"on) ---- r-'--- ----,- - HIRED AuT05 ! BODILY INJURY , NON_OWNED AUTOs 1 (Po"o,,"o") --. ------- - I,., ----- PROPERTY DAMAGE , , (po"c,,"o") lOOCOU'IT AuTOONLY.EAACCIDENT , -.. I ANY AUTO OTHER THAN EAACC , AUTO ONLY ^CO , hSS"'MBRELLALIABIL~~ EACH OCCURRENCE , 1,000,000 A ~OCCUR L CLAIMS MADE TE02101425 05/01/06 05/01/07 AGGREGATE $ 1,000,000 _, 'u___ I-- , --- - ~DEDUCTIOLE , ----- ,_. X RETENTION 510,000 , we STATU L OTH. , WoRKERSCO"'PEHSATIO~"'ND .!..._~~!LI,,,ITS " EMPloVE"S.U...OILITY A ANVPROPRIETORlPARTNER.'EXECUTIVE UB4773C569 05/01/06 05/01/07 ~~C~'DENT , 500,000 OFFICERlMEMBERExClUDED' E,LOISEASE EAEMPLOvEE I' 500,000 "yes."".,,;". "ndo, 1 , SPECIAlPROVISION51>"low E,L,DISEASE_POuCVUMIT " 500,000 OTl<ER , A Auto Ded. TE02101425 05/01/06 05/01/07 Camp 500 1 Call 1,000 DESCRIPnONOFOPERAnONSILOCATIONSIVEHIClESIEXCLUSIONSAOOEOBY ENOORSEMENT I SPECIIIL PROVISIONS Certificate holder i. named .. Additional Insured only .. their interest m.y ,#VLcoty apply to the General Liability. CERTIFICATE HOLDER CANCELLATION SANAN01 SHOULOA~VOFTHEABoV!; DEsCRIBED POLICIES BE CANCfLLEOBEFORETHEEXPIRulON DJlTETHEREOF.THEISSUINGINSURERWlllENOEAVoRTO"'...IL 30 OAVSWR'TTEN - Santa An. Police Department ~OTlCEToTHE CERTIFICATE HolOERN"'MEDTOTl<ELEFT,BUTF~llURE rooo SO SHALL Robert Brekenfe1d 60 Civic Center Plaza IMpoSEHO OBLIGATION OR LIIIBLITY OF ~NVKINDUPONTHEJNSURER,ITS"'GENTSOR Santa Ana CA 92702 REPREsENT.o.TIVES AUTHO"~REI'RESENTAT~ U..-<J2.:1. / :,.u! Vv ACORD 25 (2001108) @ACORD CORPORATION 1988 . IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ~ ACORD 25 (2001108)