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1 <br />CITY OF EVERETT / HOS BROTHERS CONSTRUCTION <br />OVER-PRESSURIZATION EVENT – FEBRUARY 3, 2023 <br />SETTLEMENT AGREEMENT <br /> <br />WHEREAS: <br />A. Hos Bros Construction Inc. (“Hos Brothers”) entered into a subcontract <br />with a third party with respect to the Soundview Project, which is a private development <br />in Everett. Under this subcontract, Hos Brothers installed certain piping, fittings, and <br />related water facilities routing municipal water in or around the Soundview Technology <br />Center. <br />B. On February 3, 2023, the City of Everett (“City”) received notice that some <br />Everett residents were experiencing higher than normal water pressure and resulting <br />damage to pipes and water heaters associated with work on the Soundview Project (the <br />“Over-Pressurization Event”). <br />C. Upon investigation, it was found that the Over-Pressurization Event <br />occurred after valves were operated at the Soundview Project before the set point had been <br />calibrated on the water-supply line’s pressure reducing valve (“PRV”). The City and Hos <br />Brothers dispute whether either of them is at fault for the Over-Pressurization Event. <br />D. In connection with the Over-Pressurization Event, some Everett residents, <br />or their insurers, have already asserted (or may in the future assert) claims for property <br />damage arising from the Over-Pressurization Event. In this Settlement Agreement, all such <br />past, present, and future Over-Pressurization Event claims by residents, or their insurers, <br />are referred to as “Residential Claims,” and these residents are referred to as “Residential <br />Claimants.” <br />E. The City and Hos Brothers dispute liability for the Over-Pressurization <br />Event, but have determined to resolve the Residential Claims efficiently and expeditiously <br />without incurring unnecessary litigation costs, expenses, and attorney fees. <br />F. It is further recognized that other third parties may have liability or fault, <br />which has not yet been determined or adjudicated. <br />NOW, THEREFORE, IT IS AGREED BY THE UNDERSIGNING PARTIES: <br />1. The Parties. The Parties to this Settlement Agreement are the City of <br />Everett and Hos Bros Construction, Inc., which are referred to as either a “Party” singularly <br />or the “Parties” collectively. <br />2. Effective Date. The Effective Date of this Settlement Agreement is the date <br />of last signature by either Party to this Settlement Agreement. <br />3. Residential Claims. This Settlement Agreement contains the Parties’ <br />settlement procedures for all Residential Claims, including those Residential Claims that