Loading...
HomeMy WebLinkAbout19-06-C AMERICAN PAVING CO.pdf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¶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± $OOSROLFLHVVKDOOEHZLWKDGPLWWHGLQVXUHUVOLFHQVHGWRGREXVLQHVVLQWKH6WDWHRI&DOLIRUQLD,QVXUDQFH SXUFKDVHGVKDOOEHSXUFKDVHGIURPFRPSDQLHVSRVVHVVLQJDFXUUHQW$0%HVW&RPSDQ\UDWLQJRI$)6& 9,,RUEHWWHU :LWKRXWOLPLWLQJWKH&2817<¶6ULJKWWRREWDLQLQGHPQLILFDWLRQIURP&2175$&725RUDQ\WKLUGSDUWLHV &2175$&725DWLWVVROHH[SHQVHVKDOOPDLQWDLQLQIXOOIRUFHDQGHIIHFWWKHIROORZLQJLQVXUDQFH SROLFLHVRUDSURJUDPRIVHOILQVXUDQFHLQFOXGLQJEXWQRWOLPLWHGWRDQLQVXUDQFHSRROLQJDUUDQJHPHQW RU-RLQW3RZHUV$JUHHPHQW -3$ WKURXJKRXWWKHWHUPRIWKH$JUHHPHQW $&RPPHUFLDO*HQHUDO/LDELOLW\ &RPPHUFLDO*HQHUDO/LDELOLW\,QVXUDQFHZLWKOLPLWVQRWOHVVWKDQWKRVHVKRZQLQWKHIROORZLQJWDEOH /LDELOLW\,QVXUDQFH5HTXLUHPHQWV 7RWDOELG )RUHDFK RFFXUUHQFHD $JJUHJDWHIRU SURGXFWVFRPSOHWHG RSHUDWLRQ *HQHUDO DJJUHJDWHE 8PEUHOODRU H[FHVVOLDELOLW\F  !  !  ! D&RPELQHGVLQJOHOLPLWIRUERGLO\LQMXU\DQGSURSHUW\GDPDJH E7KLVOLPLWPXVWDSSO\VHSDUDWHO\WR\RXUZRUNXQGHUWKLV&RQWUDFW F7KH XPEUHOODRUH[FHVVSROLF\PXVWFRQWDLQDFODXVHVWDWLQJWKDWLWWDNHVHIIHFW GURSVGRZQ LQWKH HYHQWWKHSULPDU\OLPLWVDUHLPSDLUHGRUH[KDXVWHG 7KLVSROLF\VKDOOEHLVVXHG RQDSHURFFXUUHQFHEDVLV&2817<PD\UHTXLUHVSHFLILFFRYHUDJHVLQFOXGLQJ FRPSOHWHGRSHUDWLRQVSURGXFWVOLDELOLW\FRQWUDFWXDOOLDELOLW\([SORVLRQ&ROODSVH8QGHUJURXQGILUHOHJDO OLDELOLW\RUDQ\RWKHUOLDELOLW\LQVXUDQFHGHHPHGQHFHVVDU\EHFDXVHRIWKHRIWKHQDWXUHRIWKLVFRQWUDFW 6XFK&RPPHUFLDO*HQHUDO/LDELOLW\LQVXUDQFHVKDOOQDPHWKH&RXQW\RI)UHVQRLWVRIILFHUVDJHQWVDQG HPSOR\HHVLQGLYLGXDOO\DQGFROOHFWLYHO\DVDGGLWLRQDOLQVXUHGEXWRQO\LQVRIDUDVWKHRSHUDWLRQVXQGHU WKLV$JUHHPHQWDUHFRQFHUQHG6XFKFRYHUDJHIRUDGGLWLRQDOLQVXUHGVKDOODSSO\DVSULPDU\LQVXUDQFH DQGDQ\RWKHULQVXUDQFHRUVHOILQVXUDQFHPDLQWDLQHGE\&2817<LWVRIILFHUVDJHQWVDQGHPSOR\HHV VKDOOEHH[FHVVRQO\DQGQRWFRQWULEXWLQJZLWKLQVXUDQFHSURYLGHGXQGHU&2175$&725 VSROLFLHV KHUHLQ7KLVLQVXUDQFHVKDOOQRWEHFDQFHOOHGRUFKDQJHGZLWKRXWDPLQLPXPRIWKLUW\  GD\VDGYDQFH ZULWWHQQRWLFHJLYHQWR&2817<&2175$&725VKDOOREWDLQHQGRUVHPHQWVWRWKH&RPPHUFLDO*HQHUDO /LDELOLW\LQVXUDQFHSROLF\QDPLQJ&2817<DVDQDGGLWLRQDOLQVXUHGDQGSURYLGLQJIRUDWKLUW\  GD\ SULRUZULWWHQQRWLFHRIFDQFHOODWLRQRUFKDQJHLQWHUPVRUFRYHUDJH :LWKLQHLJKW  GD\VIURPGDWH&2175$&725H[HFXWHVWKLV$JUHHPHQW&2175$&725VKDOOSURYLGH FHUWLILFDWHVRILQVXUDQFHDQGHQGRUVHPHQWDVVWDWHGDERYHIRUDOORIWKHIRUHJRLQJSROLFLHVDVUHTXLUHG KHUHLQWRWKH&RXQW\RI)UHVQR'HVLJQ(QJLQHHU7XODUH6WUHHWWK )ORRUVWDWLQJWKDWVXFK LQVXUDQFHFRYHUDJHVKDYHEHHQREWDLQHGDQGDUHLQIXOOIRUFHWKDWWKH&RXQW\RI)UHVQRLWVRIILFHUV DJHQWVDQGHPSOR\HHVZLOOQRWEHUHVSRQVLEOHIRUDQSUHPLXPVRQWKHSROLFLHVWKDWVXFK&RPPHUFLDO *HQHUDO/LDELOLW\LQVXUDQFHQDPHVWKH&RXQW\RI)UHVQRLWVRIILFHUVDJHQWVDQGHPSOR\HHVLQGLYLGXDOO\ DQGFROOHFWLYHO\DVDGGLWLRQDOLQVXUHGEXWRQO\LQVRIDUDVWKHRSHUDWLRQVXQGHUWKLV$JUHHPHQWDUH FRQFHUQHGWKDWVXFKFRYHUDJHIRUDGGLWLRQDOLQVXUHGVKDOODSSO\DVSULPDU\LQVXUDQFHDQDQ\RWKHU LQVXUDQFHRUVHOILQVXUDQFHVKDOOQRWEHFDQFHOOHGRUFKDQJHGZLWKRXWDPLQLPXPRIWKLUW\  GD\V DGYDQFHZULWWHQQRWLFHJLYHQWR&2817< &RQWUDFW1XPEHU&$JUHHPHQW ± &2175$&725VKDOOREWDLQHQGRUVHPHQWVWRWKH&RPPHUFLDO*HQHUDO/LDELOLW\LQVXUDQFHQDPLQJWKH &RXQW\RI)UHVQRLWVRIILFHUVDJHQWVDQGHPSOR\HHVLQGLYLGXDOO\DQGFROOHFWLYHO\DVDGGLWLRQDOLQVXUHG EXWRQO\LQVRIDUDVWKHRSHUDWLRQVXQGHUWKLV$JUHHPHQWDUHFRQFHUQHG6XFKFRYHUDJHIRUDGGLWLRQDO LQVXUHGVKDOODSSO\DVSULPDU\LQVXUDQFHDQGDQ\RWKHULQVXUDQFHRUVHOILQVXUDQFHPDLQWDLQHGE\ &2817<LWVRIILFHUVDJHQWVDQGHPSOR\HHVVKDOOEHH[FHVVRQO\DQGQRWFRQWULEXWLQJZLWKLQVXUDQFH SURYLGHGXQGHU&2175$&725¶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¶V$OO5LVN  &RXUVHRI&RQVWUXFWLRQ,QVXUDQFHLQDQDPRXQWHTXDOWRWKH&RQWUDFWRU¶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±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¶V FRPSOHWLRQRIWKHIRUPUHTXLUHGWREHVXEPLWWHGE\&RXQW\ZKHQUHJLVWHULQJWKH3URMHFWRQWKH',5 ZHEVLWHDQG&RXQW\WKHUHDIWHUVKDOOSURYLGHWR&RQWUDFWRUWKH³3URMHFW,'1XPEHU´DVVLJQHGE\',5LQ RUGHUWRIDFLOLWDWH&RQWDFWRU¶VVXEPLVVLRQWR',5RILWVFHUWLILHGSD\UROOVIRUWKH3URMHFWLQWKHPDQQHU UHTXLUHGDQGXVLQJVXFKIRUPDVPD\EHSUHVFULEHGE\',5LQDFFRUGDQFHZLWKWKH SURYLVLRQVRI/DERU &RGHVHFWLRQ D   $57,&/(,;*RYHUQLQJ/DZ±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