APPENDIX A - TERMS AND CONDITIONS




H.  Insurance

     The following terms are suggested for use in contracts where
     purchase of insurance by the contractor is required by law,
     regulation, or the procurement officers judgment.  The terms
     and amounts of the clause may be changed at the procurement
     officer's discretion.

1.   The Contractor shall defend, indemnify and save harmless the
     University System of Maryland, its officers, employees and
     agents, from any and all claims, liability, losses and
     causes of actions which may arise out of the performance by
     the Contractor, employees or agents, of the work covered by
     this Contract.

2.   The Contractor shall secure, pay the premiums for, and keep
     in force until the expirations of this Contract, and any
     renewal thereof, adequate insurance as provided below, such
     insurance to specifically include liability assumed by the
     Contractor under this Contract.
     a.   Commercial General Liability Insurance including all
          extensions-
          $2,000,000 each occurrence;
          $2,000,000 personal injury;
          $2,000,000 products/completed operations;
          $2,000,000 general aggregated
     
     b.   Workmen's Compensation Insurance and Unemployment Insurance
          as required by the laws of the State of Maryland.
     
     c.   Owner's Landlord's and Tenant's and Contractor's bodily
          injury liability insurance, with limits of not less than 
          $500,000 for each person and $2,000,000 for each accident.
     
     d.   Property damage liability insurance with a limit of not less
          than $2,000,000 for each accident.
     
     e.   If automotive equipment is used in the operation, automobile
          bodily injury liability insurance with limits of not less 
          than $1,000,000 for each person and $2,000,000 for each 
          accident, and property damage liability insurance, with a
          limit of not less than $2,000,000 for each accident.
     
     f.   Food products liability insurance, if not included in the
          Comprehensive, with limits of not less than $1,000,000 for
          each person and $2,000,000 for each accident.

3.   All policies for liability protection, bodily injury or
     property damage must specifically name or its face, the
     University System of Maryland as an additionally named
     insured as respects to operations under the contract and
     premises occupied by the Contractor provided, however, with
     respect to the Contractor's liability for bodily injury or
     property damage under items 2a-2f above, such insurance
     shall cover and not exclude Contractor's liability for
     injury to the property of the University System and to the
     persons or property of employees, students, faculty members,
     agents, officers, regents, invitees or guests of the
     University System.

4.   Each insurance policy shall contain the following
     endorsements:  "It is understood and   agreed that the
     Insurance Company shall notify in writing Procurement
     Officer forty-five (45) days in advance of the effective
     date of any reduction in or cancellation of this policy." A
     certificate of each policy of insurance shall be furnished
     to the Procurement Officer.  With the exception of Workmen's
     Compensation, upon the request of the Procurement Officer a
     certified true copy of each policy of insurance, including
     the above endorsement manually countersigned by an
     authorized representative of the insurance company, shall be
     furnished to the Procurement Officer.  A certificate of
     insurance for Workmen's Compensation together with a
     properly executed endorsement for cancellation notice shall
     also be furnished.  Following the notice of Contract award,
     the requested Certificates and Policies shall be delivered
     as directed by the Procurement Officer.  Notices of policy
     changes shall be furnished to the Procurement Officer."

5.   All required insurance coverages must be acquired from
     insurers allowed to do business in the State of Maryland and
     acceptable to the University.  The insurers must have a
     policyholders' rating of "A-" or better, and a financial
     size of "Class VII" or better in the latest edition of
     Best's Insurance Reports.


I.  Review of Contracts for Legal Form and Sufficiency

     A.   Contracts documented on a purchase order form, which
          includes the standard terms and conditions of Appendix
          A, Section D of these Procurement Policies and
          Procedures, and does not include any terms which
          conflict with the standard purchase order terms, does
          not require further review for legal form and
          sufficiency.
     
     B.   Documents submitted by a contract party other than the
          University, which that party seeks to have included as
          part of the contract between the parties must be
          reviewed for content and legal form and sufficiency.
          Review of contract documents should ensure that the
          content is consistent with the scope of the contract,
          and does not modify the terms of the agreement. Any
          change to the contract shall be made only by a formal
          contract modification referencing the applicable terms
          of the contract. Modification of documents submitted by
          a party other than the Institution may be made by the
          Procurement Officer and, if appropriate, by legal
          counsel.