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REV: 05-27-26 LF <br />27 Machining 5 <br />28 Power Transmission 5 <br />29 Test Instruments 5 <br />30 Office Supplies 5 <br />31 Fleet and Vehicle Maintenance 5 <br />Category discounts will remain firm for the entire term of the Master Purchase Agreement. <br />A base discount of 5% off the Grainger Contract Reference Price shall be applied at the <br />time of purchase for all catalog items that are not in a category discount. All discounts <br />shall be applied to prices in effect at time of purchase. <br />Vendor shall invoice the City following City’s acceptance of each Order. Vendor shall <br />submit invoices and deliver the Goods to: <br />Public Works Services <br />1400 Broadway <br />Redwood City, CA 94063 <br />III.INSURANCE <br />1. Insurance. Vendor will obtain and maintain for the duration of the Master Purchase <br />Agreement and any and all amendments, insurance against claims for injuries to persons <br />or damage to property, which may arise out of or in connection with delivery of the Goods <br />or performance of the Services by Vendor or Vendor’s agents, representatives, <br />employees or subcontractors. The insurance carrier is required to maintain an A.M. Best <br />rating of not less than “A-: VII”. <br />1.1 Coverages and Limits. Vendor, at its sole expense, will maintain the types <br />of coverages and minimum limits indicated below, unless otherwise approved by <br />City in writing. These minimum amounts of coverage will not constitute any <br />limitations or cap on Vendor's indemnification obligations under this Master <br />Purchase Agreement. <br />1.1.1 Commercial General Liability Insurance. Vendor will maintain <br />occurrence based coverage with limits not less than $2,000,000 per <br />occurrence. If the submitted policies contain aggregate limits, such limits <br />will apply separately to the Services, project, or location that is the subject <br />of this Master Purchase Agreement, or the aggregate will be twice the <br />required per occurrence limit. The Commercial General Liability insurance <br />policy will be endorsed to name the City, its officers, agents, employees and <br />volunteers as additional insureds, and to state that the insurance will be <br />primary and not contribute with any insurance or self-insurance maintained <br />by the City. <br />1.1.2 Workers' Compensation and Employer's Liability Insurance. Vendor <br />will maintain coverage as required by the California Labor Code and <br />ATTY/AGR.2026.131/W. W. Grainger, Inc. (MRO Supplies and Related Services) (Page 9 of 10)