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the building permit and other permits and governmental fees, licenses, and inspections necessary for proper
<br />execution. South Bend shall be responsible for securing any necessary approvals, easements, assessments, or
<br />zoning changes and shall be responsible for real estate and personal property taxes where applicable. JCI makes no
<br />representations regarding the tax implications or South Bend's accounting treatment of this Agreement.
<br />6. WARRANTY. JCI warrants that materials and equipment furnished by JCI will be of good quality and new; that the
<br />Work will be free from defects not inherent in the quality required or permitted; and that the Work and Services will
<br />conform to the requirements of the Agreement Documents. JCI warrants that the Work shall be free from defects in
<br />material and workmanship arising from normal usage for a period of one year from the Substantial Completion Date
<br />and that its Services will be free from defects in workmanship, design, and material until the end of the Term, or for
<br />one year, whichever is earlier. Upon written notice from South Bend, JCI shall, at its option, repair or replace the
<br />defective Work or re-perform defective Services. These warranties do not extend to any Work or Services that have
<br />been abused, altered, misused, or repaired by South Bend or third parties without the supervision of and prior written
<br />approval of JCI; or if JCI serial numbers or warranty date decals have been removed or altered. South Bend must
<br />promptly report any failure of the Equipment to JCI in writing. All replaced Equipment or parts become JCI's property.
<br />THESE WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT
<br />NOT LIMITED TO THOSE OF MERCHANTABILITY AND FITNESS FOR A SPECIFIC PURPOSE.
<br />South Bend understands that JCI is a provider of services under this Agreement. JCI shall not be considered a
<br />merchant or a vendor of goods. If JCI installs or furnishes a piece of equipment under this Agreement, and that
<br />equipment is covered by a warranty from the manufacturer, JCI will transfer the benefits of that
<br />manufacturer's warranty to South Bend if this Agreement with South Bend terminates before the equipment
<br />manufacturer's warranty expires.
<br />7. CLEANUP. JCI shall keep the premises and the surrounding area free from accumulation of waste materials or
<br />rubbish caused by the Work and, upon completion of the Work, JCI shall remove all waste materials, rubbish, tools,
<br />construction equipment, machinery, and surplus materials.
<br />8. SAFETY. JCI shall be responsible for initiating, maintaining, and supervising all safety precautions and programs in
<br />connection with the performance of the Work or Services. JCI shall comply with all applicable laws, ordinances, rules,
<br />regulations, and lawful orders of public authorities related to safety of persons or property.
<br />HAZARDOUS MATERIALS. Unless specifically noted in Schedule 1, JCI's obligations expressly exclude any Work or
<br />Services of any nature associated or connected with the identification, abatement, cleanup, control, removal, or
<br />disposal of hazardous materials or substances, including but not limited to asbestos, lead or PCBs, in or on the
<br />premises in which JCI will be required to perform Work. South Bend warrants and represents that, to the best of
<br />South Bend's knowledge, there is no asbestos or other hazardous materials in South Bend's building(s) or
<br />other premises in which JCI will be required to perform Work that will in any way affect JCI's Work. Should
<br />JCI become aware of or suspect the presence of asbestos or other hazardous materials, JCI shall have the right to
<br />stop work in the affected area immediately and notify South Bend. South Bend will be responsible for doing whatever
<br />is necessary to correct the condition in accordance with all applicable statutes and regulations. South Bend agrees to
<br />assume responsibility for any claims arising out of or relating to the presence of asbestos or other hazardous materials
<br />in South Bend's buildings or any premises in which JCI will be required to perform Work.
<br />10. INSURANCE. Prior to commencing the Work, JCI shall provide a certificate of insurance with Contractor showing its
<br />insurance coverage's, and JCI shall maintain such insurance in full force and effect at all times until the Work and
<br />Services have been completed, in the following minimum amounts:
<br />COVERAGES
<br />Workmen's Compensation Insurance or self insurance,
<br />including Employer's Liability
<br />Comprehensive General
<br />Liability Insurance, including Contractual.
<br />Comprehensive Automobile Liability
<br />Insurance
<br />LIMITS OF LIABILITY
<br />Statutory
<br />$5,000,000 One Occurrence
<br />$5,000,000 Each Aggregate
<br />$5,000,000 Combined
<br />Single Limit
<br />Page 3 of 20
<br />Pertormance Contract (Rev 14)
<br />SB LED Contract_15June 2007_FINAL(ver7)
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