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HomeMy WebLinkAbout08-2066 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY Automatic Bowling Centre, Inc. d/b/a ABC West Lanes Plaintiff vs. No. ?$ - 0106&# Philadelphia Indemnity Insurance Co. Defendant 0,1vit (erw% .................................................... COMPLAINT Comes Now Automatic Bowling Centre, Inc. d/b/a ABC West Lanes by its Attorneys Bresset and Santora, LLC and states its complaint and cause of action as follows: 1. PRELIMINARY AVERMENTS 1. That the Plaintiff is Automatic Bowling Centre, Inc., a domestic business corporation with its principal place of business at 1001 Eisenhower Blvd., Harrisburg, PA 17111. 2. That the Defendant is the Philadelphia Insurance Companies an insurance corporation with an office location at One Bala Plaza, Suite 100, Bala Cynwyd, Pennsylvania 19004. 3. That on the 30th day of September, 2006, the Defendant issued to the Plaintiff a policy of insurance which bears policy No.PHPK193247 which provided coverage to the Plaintiff. A copy of the policy of insurance is attached hereto, made a part hereof, and marked as Exhibit "A". Phi"adelphia Insurance Companies One Bala Plaza, Suite 100, Bala Cynwyd, Pennsylvania 19004 Philadelphia Indemnity Insurance Company COMMON POLICY DECLARATIONS Policy Number: PHPK193247 Named Insured and Mailing Address: Automatic Bowling Centre, Inc ABC East, ABC West, ABC North 1001 Eisenhower Blvd Harrisburg, PA 17111-2314 Policy Period From: 09/30/2006 To: 09/30/2007 Business Description: Bowling Center Producer: 3548 Acordia Northeast, Inc. 4900 Ritter Road, Suite 250 Mechanicsburg, PA, 17055 at 12:01 A.M. Standard Time at your mailing address shown above. IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM IS INDICATED. THIS PREMIUM MAY BE SUBJECT TO ADJUSTMENT. PREMIUM Commercial Property Coverage Part Commercial General Liability Coverage Part Commercial Crime Coverage Part Commercial Inland Marine Coverage Part Commercial Auto Coverage Part Businessowners 'Workers Compensation Liquor Liability Coverage Part Total Includes Federal Terrorism Risk Insurance Act Coverage 73,138.00 30, 209.00 1,242.00 225.00 10,018.00 Total $ 114,832.00 139.00 FORM (S) AND ENDORSEMENT (S) MADE A PART OF THIS POLICY AT THE TIME OF ISSUE Refer To Forms Schedule `Omits applicable Forms and Endorsements if shown in specific Coverage Part/Coverage_Form Declarations Countersignature Date Authorized Representative Philadelphia Indemnity Insurance Company Form Schedule - Policy Policy Number: PHPK193247 Forms and Endorsements applying to this Coverage Part and made a part of this policy at time of issue: Form Edition Description BJP-190-1 Common Policy Dec 1298 Commercial Lines Policy Jacket Location Schedule 0100 0100 Common Policy Declarations Location Schedule Mortgagee Schedule 0100 Mortgagee Schedule Loss Payee Schedule 0100 Loss Payee Schedule PP 0701 PI-BELL-1 0701 Privacy Policy Notice IL0017 0406 Bell Endorsement IL0021 1198 Common Policy Conditions IL0166 0702 Nuclear Energy Liability Exclusion Endorsement IL0172 0702 Pennsylvania Changes - Actual Cash Value IL0246 0702 Pennsylvania Changes IL0910 0702 Pennsylvania Changes-Cancellation and Nonrenewal IL0952 0702 Pennsylvania Notice IL0985 1102 Cap on Losses From Certified Acts of Terrorism 0103 Disclosure Pursuant to Terrorism Risk Ins Act of 2002 Page 1 of Philadelphia Indemnity Insurance Company COMMERCIAL PROPERTY COVERAGE PART SUPPLEMENTAL SCHEDULE Policy Number. PHPK193247 Named Insured: Automatic Bowling Centre, Inc Agent # 3548 DESCRIPTION OF PREMISES: Prem. Bldg. No. No. Location, Fire Protection/Construction and Occupancy 001 001 1001 Eisenhower Boulevard Harrisburg, PA 17111-2314 BOWLING LANE PC 05 JOISTED MASONRY 002 001 6454 Carlisle Pike Mechanicsburg, PA 17050-2384 BOWLING LANE PC 05 JOISTED MASONRY COVERAGES PROVIDED: Insurance at the described premises applies only for coverages for which a limit of insurance is shown or for which an entry is made. Prem. Bldg. Limit of Causes of (1) No. No. Coverage Insurance Loss Form Coinsurance(2) Deductible 001 001 BUILDING 3,703,999 SPECIAL 90% 1,000 001 001 BUSINESS PERS PROPERTY 471,000 SPECIAL 90% 1,000 001 001 BUSINESS INCOME-BASIC(b) 724,456 SPECIAL 100% N/A 002 001 BUILDING 5,874,079 SPECIAL 90% 1,000 002 001 BUSINESS PERS PROPERTY 632,000 SPECIAL 90% 1,000 002 001 BUSINESS INCOME-BASIC (b) 1,363,456 SPECIAL 100% N/A OPTIONAL COVERAGES: Prem. Bldg. Agreed Value Replacement Cost Inflation No. No. Coverage Amount Expiration Date Incl. Stock Guard 001 001 BUILDING (X) 001 001 BUSINESS PERS PROPERTY (X) (X) 002 001 BUILDING (X) 002 001 BUSINESS PERS PROPERTY (X) (X) OPTIONAL COVERAGES: APPLIES TO BUSINESS INCOME ONLY Prem. Bldg. Agreed Value Agreed Value Monthly Limit of Maximum Period of Extended Period of No. No. Date Amount Indemnity(Fraction) Indemnity Indemnity (Days) Deductible Exceptions: (1) EQ (if shown) = Earthquake (2) Coinsurance %, Extra Expense %, Limits on Loss Payment or Value Reporting Form Symbol (5) 10% or $5,000 minimum Philadelphia Indemnity Insurance Company COMMERCIAL PROPERTY COVERAGE PART SUPPLEMENTAL SCHEDULE Policy Number: PHPK193247 Named Insured: Automatic Bowling Centre, Inc Agent # 3548 DESCRIPTION OF PREMISES: Prem. Bldg. No. No. Location, Fire Protection/Construction and Occupancy 003 001 5303 Locust Ln Harrisburg, PA 17109-5525 BOWLING LANE PC 04 MASONRY NON-COMBUSTIBLE COVERAGES PROVIDED: Insurance at the described premises applies only for coverages for which a limit of insurance is shown or for which an entry is made. Prem. Bldg. Limit of Causes of (1) No. No. Coverage Insurance Loss Form Coinsurance(2) Deductible 003 001 BUILDING 003 001 BUSINESS PERS PROPERTY 003 001 BUSINESS INCOME-BASIC (b) BOILER & MACHINERY OPTIONAL COVERAGES: Prem. Bldg. No. No. Coverage 003 001 BUILDING 003 001 BUSINESS PERS PROPERTY 3,988,473 SPECIAL 292,000 SPECIAL 926,256 SPECIAL Agreed Value Amount Expiration Date 90% 1,000 90% 1,000 100% N/A Replacement Cost Inflation Incl. Stock Guam (X) (X) (x) OPTIONAL COVERAGES: APPLIES TO BUSINESS INCOME ONLY Prem. Bldg. Agreed Value Agreed Value Monthly Limit of Maximum Period of Extended Period of No. No. Date Amount Indemnity(Fraction) Indemnity Indemnity (Days) Deductible Exceptions: (1) EQ (if shown) = Earthquake (2) Coinsurance %, Extra Expense %, Limits on Loss Payment or Value Reporting Form Symbol (5) 10% or $5,000 minimum Philadelphia Indemnity Insurance Company Locations Schedule Policy Number: PHPK193247 Prems. Bidg. No. No. Address 001 001 1001 Eisenhower Boulevard Harrisburg, PA 17111-2314 002 001 6454 Carlisle Pike Mechanicsburg, PA 17050-2384 003 001 5303 Locust Ln Harrisburg, PA 17109-5525 Page 1 of 1 Philadelphia Indemnity Insurance Company Mortgagee Schedule Policy Number: PHPK193247 Mortgagee Pennsylvania State Bank 2148 Market St Camp Hill, PA 17011-4706 PA - Loc #1 - Bid #1 - BUILDING (BOWLING LANE) PA - Loc #2 - Bid #1 - BUILDING (BOWLING LANE) Mortgagee Harris Savings Bank 234 N. 2nd Street P.O. Box 1711 Harrisburg, PA 17105 PA - Loc #3 - Bid #1 - BUILDING (BOWLING LANE) Mortgagee GCD 5303 Locust Ln Harrisburg, PA 17109-5525 PA - Loc #3 - Bid #1 - BUILDING (BOWLING LANE Page 1 of 1 1 Philadelphia Indemnity Insurance Company Loss Payee Schedule Policy Number: PHPK193247 Loss Payee Pennsylvania State Bank 2148 Market St Camp Hill, PA 17011-4706 PA - Loc #1 - Bid #1 - BUSINESS PERS PROPERTY (BOWLING LANE) PA - Loc #2 - Bid #1 - BUSINESS PERS PROPERTY (BOWLING LANE) Loss Payee AT&T Capital Corp 500 Chastain Center Blvd NW Ste 555 Kennesaw, GA 30144-5599 PA - Loc #1 - Bid #1 - BUSINESS PERS PROPERTY (BOWLING LANE) Loss Payee Deutsch Financial Services 2337 Waukegen Road Pannockburn, IL 60015 PA - Loc #1 - Bid #1 - BUSINESS PERS PROPERTY (BOWLING LANE) PA - Loc #2 - Bid #1 - BUSINESS PERS PROPERTY (BOWLING LANE) PA - Loc #3 - Bid #1 - BUSINESS PERS PROPERTY (BOWLING LANE) Page 1 of 1 Philadelphia Indemnity Insurance Company COMMERCIAL PROPERTY COVERAGE PART DECLARATIONS Policy Number: PHPK193247 Named Insured: Automatic Bowling Centre, Inc ® See Supplemental Schedule Agent # 3548 BUSINESS DESCRIPTION: Bowling Center DESCRIPTION OF PREMISES: Prem. Bldg No. No. Location, Fire Protection/Construction and Occupancy SEE SCHEDULE ATTACHED COVERAGES PROVIDED: Insurance at the described premises applies only for coverages for which a limit of insurance is shown or for which an entry is made. Prem. Bldg. Limit of Causes of No. No. Coverage Insurance Loss Form (1) Coinsurance(2) Deductible SEE SCHEDULE ATTACHED OPTIONAL COVERAGES: Prem. Bldg. Agreed Value Replacement Cost Inflation No. No. Coverage Amount Expiration Date Ind. Stock Guard SEE SCHEDULE ATTACHED OPTIONAL COVERAGES: APPLIES TO BUSINESS INCOME ONLY Prem. Bldg. Agreed Value Agreed Value Monthly Limit of Maximum Period of Extended Period of No. No. Date Amount Indemnity (Fraction) Indemnity Indemnity (Days) SEE SCHEDULE ATTACHED DEDUCTIBLE: SEE SCHEDULE ATTACHED MORTGAGE HOLDERS: Refer To Mortgagee/Loss Payee Schedule FORM(S) AND ENDORSEMENT(S) APPLICABLE TO THIS COVERAGE PART: Refer To Forms Schedule TOTAL PREMIUM FOR THIS COVERAGE PART $ 73,138.00 (1) EQ (if shown) = Earthquake (2) Coinsurance %, Extra Expense %, Limits on Loss Payment or Value Reporting Form Symbol Countersignature Date Authorized Representative Philadelphia Indemnity Insurance Company (A Stock Company founded in 1927) One Bala Plaza, Suite 100, Bala Cynwyd, Pennsylvania 19004 1-800-759-4961 Commercial Lines Policv Pol, THIS POLICY CONSISTS OF: ^,c?- a nt H an lei, DECLARATIONS COMMON POLICY CONDITIONS - ONE OR MORE COVERAGE PARTS. A COVERAGE PART CONSISTSaz ONE OR MORE COVERAGE FORMS • APPLICABLE FORMS AND ENDORSEMENTS nC? 1 20p6 BJP-190-1 (12-98) IN WITNESS WHEREOF, we have caused this policy to be executed and attested, and, if required by state law, this policy shall not be valid unless countersigned by our authorized representative. _L v President Secretary RAP_lon_1 Mo - Loss Control Notice Welcome to PIC Loss Control Services: PIC is familiar with the unique loss control programming needs of your organization and has achieved superior results in this area. We are committed to delivering quality and timely loss prevention services and risk control products to your organization. Customer satisfaction through the delivery of these quality professional products to achieve measurable risk Improvement results is our goal. We know the fulfillment of the loss control commitment is not complete until we deliver upon our promises. Our product specific service capabilities follow on the next few pages. They Include a multi- faceted approach to risk management covering safety program development, site audits, and training (including a new interactive web-based training). We offer a wide range of products and value-added services at no cost to help you achieve your risk management goals. Please take a moment to register for our website @ www.losscontrol.com to gain full access to these resources. Please assign yourself your own username and password. Your registration request will be processed within two business days. We look forward to helping to make your insurance program a success. We are standing by if you have any questions or if we may be of further assistance. Please contact us at: Jeffrey M. Collins, AVID & Director Loss Control Department Phone: 610-617-7717 E-Mail: IcollinsOphivins.com Mark A. Konchan, Manager Loss Control Department Phone: 610-538-2967 E-Mail: mkonchan r?g_hivins.com One Bala Plaza - Suite 100 -Bala Cynwyd, PA 19004 - (800)873-4552 - Fax# (610)617-7940 -r PIC LOSS CONTROL SERVICES TOTAL SOLUTION TO YOUR RISK MANAGEMENT NEEDS OUR MISSION: 'We welcome the opportunity to demonstrate how we can tailor a program suitable for our customers needs. We are committed to providing our customer, with improved communications, quicker implementation of loss control servicing initiatives, and an improved identity towards the needs of our consumers.' We provide customized loss control consultation services to the following products: Protect your business with PIC Loss Control Services. Keep costs down by choosing Loss Control Programs specific to your industry and exposures. We'll show you how to implement Risk Management Programs and Client Training Services that get results. • Da Cares & Da Cams • Mobile Home Parks • Boat Dealers Municipalities • Bowfin Centers • Non-Profit & For-Profit Agencies • Office Buildings, Real Estate, Shopping • Guides & Outfitters Centers • Residential Occupancies (Apartments • Health & Fitness Clubs, Wellness , Condominiums, Home Owners Centers Associations • Health Care Industry (Nursing • School Districts, Specialty Schools Homes Assisted Living, Hospitals) , Colle es and Universities • Hotels • Social Services Agencies • Sports Arenas, Ice Arenas & Recreation • Mental Health Services Centers Benefits of our Service: + National coverage with no limitations to territory. Clients can register for our website www.losscontroLcom to access our comprehensive online resources at no cost. ?? Large network of loss control and risk management professionals with expertise in all aspects of Risk Management. Superior level of Quality and timely risk assessment and loss prevention services. Tailor a risk management program suitable for your needs 5/4/2005 )'rt in I SAFETY MANAGEMENT RESOURCES: PMMOffift : This interactive online defensive driver training course is designed to teach the driver how to minimize the risks involved with driving any type of vehicle, and how to avoid dangerous driving situations and improper driving techniques. These are things everyone should know how to do, both on and off the job. This can be accessed through www.losscontrol.com at no cost to PIC policyholders. A final exam and completion certificate are also available online. Web-enabled EPLI Risk Management Services. YourHRdepartment, Inclm provides FREE HR training programs and other materials to all EPL Policyholders to assist the policyholders in reducing their exposure to employment practices liability. This can be accessed through www.losscontrol.com. ' Driver Monitoring Program. - SafetyFirst Systems, LLC ("SafetyFirst") • I provides a vehicle driver monitoring system uniquely geared to the ----- rv-- transportation industry. SafetyFirst's primary product is a driver performance feedback service that highlights risk-taking behaviors. Independent studies by major insurance companies have shown a 20-65% reduction in collisions when information developed by the program is used to coach drivers on their performance and influence a behavior change. "1-800-550-SAFE" decals are placed on rear of commercial vehicles (vans, pickups, delivery trucks, tractor trailers, etc.) that encourage motorists to report risk-taking behaviors. Calls are received at staffed, 'round the clock (24/7/365), dedicated call center for documentation and reporting to the client for management review. http://w?vi;N-,.ph.ly.coin/homei'products%losscontrol asp eomol ?f AIED Nr?i`?Ixre• WEMED Loss Assistance Hotline - Philadelphia Insurance Companies (PIC) has partnered with nationally recognized law firm Wilson, Elser, Moskowitz, Edelman and Dicker LLP to offer a Loss Assistance Hotline. This hotline provides policyholders with 2 free hours of legal consultation with knowledgeable attorneys on any matter that could potentially result in a claim under your PIC policy. This loss assistance hotline is NOT a loss reporting hotline. Please visit www losscontroLcom for full details including contact information. You can also contact WEMED online to Inquire about loss assistance by.visiting the following website: WEMED Loss Assistance Hotline. 5/4/2005 STRATEGIC ALLIANCES: These services are pre-negotiated arrangements with "Best in Class" vendors and provide solutions to your human resources and risk management needs. PIC does not receive any revenue from these alliances. ?tteliY+Co?p IntelliCorp Records, Inc. - IntelliCorp Records, Inc., an affiliate of the Insurance Services Offices (ISO), is the leading provider of innovative decision-support products for employment and background checks and offers the best screening tools in the industry. IntelliCorp offers a wide range of innovative pre-employment verification and screening services, including criminal background checks, previous employment and education references, motor vehicle records and more. As a PIC client, you receive the value-added benefit of reduced pricing and access to the largest criminal history database available. IntelliCorp provides customers with industry leading information solutions enabling them to make better decisions. No other provider gets you closer to the comprehensive, timely and accurate data you need. Your organization will avoid costly hiring and recruiting mistakes and limit exposure to risk litigation. You can access IntelliCorp's employment solutions by visiting www.imcontrol.com. Please make certain you have your Policy Number available. Some of the information available includes: Getting started: 1. Click on "Total Solution Pre-Employment Verification Screening Services and Motor Vehicle Record Checks located on the front page of www.losscontrol.com. 2. Enter promotion code PHLY 3. As part of the activation process, you'll need to submit a photocopy of one of these documents: • Business license • Vendor license • Federal identification number (on a legal/government document) 4. The system will invoice you when you register. You can pay by monthly invoice or credit card. If you choose monthly invoicing, you must complete our Credit Authorization Form. You can submit the form on-line during the 5/4/2005 )14/4 registration process or fax it to 440-505-0261. IntelliCorp submits all invoices through e-mail and will invoice you on the first business day after the end of the month. If you pay by credit card, you'll receive an e-mail statement. 5/4/2005 #TIV4 YourHRdepartment, Inc. - offers a full-service Human Resources Management program, including HR consulting services, to Philadelphia Insurance Company (PIC) policyholders. PIC clients are entitled to the below benefits at no additional cost: ? Monthly HR newsletters (by e-mail) covering both federal and state employment law news to help you comply with ever-changing employment laws ? On-line HR training programs, including Anti-Harassment/Discrimination; Hiring; HIPAA; Privacy in the Workplace; Progressive Discipline; and Termination ? HR Self-Audit Checklists to quickly spot HR landmines Additional HR services available at 16% discount: ? YourHRassistant' (Intemet-based HR management) ? Employee handbooks ? HR management forms ? Full-service HR consulting ? HR telephone support by HR experts ? Other consulting services Access to all services are available through wwwdossconfroLcom. 5/4/2005 Philadelphia Indemnity Insurance Company Form Schedule - Property Policy Number: PHPK193247 Forms and Endorsements applying to this Coverage Part and made a part of this policy at time of issue: Form Edition Description FORMS APPLICABLE TO ALL PREMISES AND COVERAGES Form. Edition Description Property Dec 0100 Property Declarations Property Schedule 0100 Property Supplemental Schedule CR0090 0788 Commercial Property Conditions CP1218 0695 Loss Payable Provisions CP9993 1090 Tentative Rate CR1000 0695 Crime General Provisions PI-BM-001 1003 Equipment Breakdown Protection Endorsement PI-EDP-002 1290 Electronic Equip Coverage Form A-Electronic E PI-EDP-003 1290 Electronic Equip Coverage Form B-Electronic D PI-EDP-004 1290 Electronic Equip Coverage Form C-Extra Expens PI-PEE-001 1298 Property Enhancement Endorsement FORMS APPLICABLE TO SPECIFIC PREMISES AND COVERAGES Form Edition Description CP0010 0402 Building and Personal Property Coverage Form PA PREMS 001 BLDG 001 BUILDING BUSINESS PERS PROPERTY PA PREMS 002 BLDG 001 BUILDING BUSINESS PERS PROPERTY PA PREMS 003 BLDG 001 BUILDING BUSINESS PERS PROPERTY CP0030 0402 Business Income (And Extra Expense) Coverage PA PREMS 001 BLDG 001 BUSINESS INCOME-BASIC PA PREMS 002 BLDG 001 BUSINESS INCOME-BASIC PA PREMS 003 BLDG 001 BUSINESS INCOME-BASIC CP1030 0402 Causes of Loss - Special Form PA PREMS 001 BLDG 001 BUILDING BUSINESS PERS PROPERTY BUSINESS INCOME-BASIC PA PREMS 002 BLDG 001 BUILDING BUSINESS PERS PROPERTY BUSINESS INCOME-BASIC PA PREMS 003 BLDG 001 BUILDING BUSINESS PERS PROPERTY BUSINESS INCOME-BASIC Page 1 of 2 Philadelphia Indemnity Insurance Company Form Schedule - Property Policy Number: PHPK193247 Forms and Endorsements applying to this Coverage Part and made a part of this policy at time of issue: Form Edition Description FORMS APPLICABLE TO SPECIFIC PREMISES AND COVERAGES Form Edition Description PI-NP-007 0401 Loss of Income Due to Workplace Violence PA PREMS 001 BLDG 001 BUSINESS INCA-BASIC PA PREMS 002 BLDG 001 BUSINESS INCOME-BASIC PA PREMS 003 BLDG 001 BUSINESS INCOM-BASIC Page 2 of 2 !Philadelphia Indemnity Insurance Company COMMERCIAL GENERAL LIABILITY COVERAGE PART DECLARATIONS Policy Number: PHPK193247 ® See Supplemental Schedule Agent # 3548 LIMITS OF INSURANCE $ 2,000,000 General Aggregate Limit (Other Than Products -Completed Operations) $ 2,000,000 Products/Completed Operations Aggregate Limit (Any One Person Or Organization) $ 1,000,000 Personal and Advertising Injury Limit $ 1,000,000 Each Occurrence Limit $ 100,000 Damage To Premises Rented To You Limit (Any One Premises) $ Medical Expense Limit (Anv One Person) FORM OF BUSINESS: CORPORATION Business Description: Bowling Center Location of All Premises You Own, Rent or Occupy: SEE SCHEDULE ATTACHED AUDIT PERIOD, ANNUAL, UNLESS OTHERWISE STATED: N/A Classifications Code No. Premium Basis Rates PremJ ProdJ o vs. Como. O s Advance Premiums PremJ ProdJ O DS. comp. O s. SEE SCHEDULE ATTACHED - TOTAL PREMIUM FOR THIS COVERAGE PART: $ 29,990.00 $ 219.00 RETROACTIVE DATE (CG 00 02 ONLY) This insurance does not apply to "Bodily Injury", "Property Damage", or "Personal and Advertising Injury" which occurs before the retroactive date, if any, shown below. Retroactive Date: FORM (S) AND ENDORSEMENT (S) APPLICABLE TO THIS COVERAGE PART: Refer To Forms Schedule Countersignature Date Authorized Representative Philadelphia Indemnity Insurance Company Form Schedule - General Liability Policy Number: PHPK193247 Forms and Endorsements applying to this Coverage Part and made a part of this policy at time of issue: Form Edition Description Gen Liab Dec 1004 Commercial General Uability Coverage Part Declaration Gen Liab Schedule 0100 General Uability Schedule CG0001 1204 Commercial General Uability Coverage Form CGO067 0305 Exclusion - Violation of Statutes CG2135 1001 Exclusion - Coverage C - Medical Payments CG2146 0798 Abuse Or Molestation Exclusion CG2147 0798 Employment-Related Practices Exclusion CG2167 1204 Fungi or Bacteria Exclusion CG2170 1102 Cap on Losses From Certified Acts of Terrorism CG2402 1204 Binding Arbitration PI-GL-001 0894 Exclusion - Lead Uability PI-GL-002 0894 Exclusion - Asbestos Uability Page 1 of Philadelphia Indemnity Insurance Company, COMMERCIAL GENERAL LIABILITY COVERAGE PART SUPPLEMENTAL SCHEDULE Policy Number: PHPK193247 Agent# 3548 Classificagons Code No. Premium Basis Rates PremJ ProdJ O s. comp. O . Advance Premiums Prem./ ProdJ O . comp. O . PA PREM NO. 001 BOWLING LANE 10220 750,000 11.091 INCL 8,326 INC: Prod/Comp Op subj to GROSS SALES Gen Agg Limit PA PREM NO. 001 RESTAURANT-ALC < 75!k-W/0 D 16916 135,000 2.030 0.257 275 3 GROSS SALES PA PREM NO. 001 SPORT GOOD/ATHLTIC EQUIP S 18206 30,000 1.193 0.692 37 2: GROSS SALES PA PREM NO. 002 BOWLING LANE 10220 1,100,000 11.091 INCL 12,212 INC: Prod/Comp Op subj to GROSS SALES Gen Agg Limit PA PREM NO. 002 RESTAURANT-ALC < 75%-W/O D 16916 195,000 2.030 0.257 397 5. GROSS SALES PA PREM NO. 002 SPORT GOOD/ATHLTIC EQUIP S 18206 40,000 1.193 0.692 49 2'. GROSS SALES PA PREM NO. 003 BOWLING LANE 10220 750,000 11.091 INCL 8,326 INC: Prod/Comp Op subj to GROSS SALES Gen Agg Limit Philadelphia Indemnity Insurance Company COMMERCIAL GENERAL LIABILITY COVERAGE PART SUPPLEMENTAL SCHEDULE Policy Number: PHPK193247 Agent # 3548 Philadelphia Indemnity Insurance Company COMMERCIAL INLAND MARINE COVERAGE PART DECLARATIONS Policy Number: PHPK193247 ® See Supplemental Schedule Agent # 3548 FORM OF BUSINESS: CORPORATION Business Description: Bowling Center Location of All Premises You Own, Rent or Occupy: SEE SCHEDULE ATTACHED ITEM LIMIT OF NO. INSURANCE DEDUCTIBLE DESCRIPTION SEE SCHEDULE ATTACHED DEDUCTIBLE: SEE SCHEDULE ATTACHED MORTGAGE HOLDERS: Refer To Mortgagee/Loss Payee Schedule FORM(S) AND ENDORSEMENT(S) APPLICABLE TO THIS COVERAGE PART: Refer To Forms Schedule TOTAL PREMIUM FOR THIS COVERAGE PART $ 1,242 Countersignature Date Authorized Representative Insured Copy Philadelphia Indemnity Insurance Company Form Schedule - Inland Marine Policy Number: PHPK193247 Forms and Endorsements applying to this Coverage Part and made a part of this policy at time of issue: Form Edition Description Inland Marine Dec 0100 Commercial Inland Marine Coverage Part Declarations Inland Marine Schedule 0100 Inland Marine Schedule CM0001 0904 Commercial Inland Marine Conditions CM0028 0900 Signs Coverage Form PI-CIM-053 0503 Computer Coverage Form Page 1 of 1 Philadelphia Indemnity Insurance Company COMMERCIAL INLAND MARINE COVERAGE PART SUPPLEMENTAL SCHEDULE Policy Number: PHPK193247 Agent #: 3548 For PERILS COVERED see applicable form attached. ITEM LIMIT OF ST/LOC NO. INSURANCE DEDUCTIBLE DESCRIPTION PA N/A 001 $ 180,000 $ 500 COMPUTER COVERAGE PA N/A 002 $ 30,000 . 5% OF LIMIT SIGNS Page 1 of 1 Philadelphia Indemnity Insurance Company POLICY NUMBER: PHPK193247 COMMERCIAL AUTO CA DS 03 03 06 BUSINESS AUTO DECLARATIONS ITEM ONE Named Insured and Mailing Address: Automatic Bowling Centre, Inc ABC East, ABC West, ABC North 1001 Eisenhower Blvd Harrisburg, PA 17111-2314 From: To: Form Of Business: CORPORATION At 12:01 A.M at In return for the payment of the premium, and subject to all the terms of this policy, we agree with you to provide the insurance as stated in this policy. Premium shown Is payable at Inception: $ Period To See Schedule Attached CA DS 03 03 06 © ISO Properties, Inc., 2005 Page 1 of 11 h Countersignature Of Authorized Representative Name: Title: Signature: Date: ITEM TWO Schedule Of Coverages And Covered Autos This policy provides only those coverages where a charge is shown in the premium column below. Each of these coverages will apply only to those "autos" shown as covered "autos". "Autos" are shown as covered "autos" for a particular coverage by the entry of one or more of the symbols from the Covered Autos Section of the Business Auto Coverage Form next to the name of the coverage. Covered Coverages Autos Limit Premium Liability 8, 09 $ 11000,000 CSL $ 224 Personal Injury Separately Stated In Each Personal Injury $ Protection (Or Protection Endorsement Minus Equivalent No-Fault $ Deductible Coverage) . Added Personal Injury Separately Stated In Each Added Per- $ Protection (Or sonal Injury Protection Endorsement. Equivalent Added No- Fault Coverage) Separately Stated In The Property $ Property Protection Protection Insurance Endorsement Minus Insurance (Michigan Only) $ Deductible For Each Accident. Auto Medical Payments $ $ Medical Expense And Separately Stated In Each Medical $ Income Loss Benefits Expense And Income Loss Benefits (Virginia Only) Endorsement. Uninsured Motorists $ $ Underinsured Motorists $ $ (When Not Included In Uninsured Motorists Coverage) Page 2 of 11 © ISO Properties, Inc., 2005 CA DS 03 03 06 ? ITEM TWO Schedule Of Coverages And Covered Autos (Cont'd) Covered Coves es Autos Limit Premium Actual Cash Value Or Cost Of Repair, Whichever $ Is Less, Minus Physical Damage $ Deductible For Each Comprehensive Covered Auto, But No Coverage Deductible Applies To Loss Caused By Fire Or Lightning. See Item Four For Hired Or Borrowed Autos. Actual Cash Value Or Cost Of Repair, $ Whichever Is Less, Minus Physical Damage $ 25 Deductible For Each Specified Covered Auto For Causes Of Loss Loss Caused By Coverage Mischief Or Vandalism. See Item Four For Hired Or Borrowed Autos. Actual Cash Value Or Cost Of Repair, $ Physical Damage Whichever Is Less, Minus Collision $ Deductible For Each Coverage Covered Auto. See Item Four For Hired Or Borrowed "Autos". Physical Damage $ For Each Disable- $ Towing And Labor ment Of A Private Passen er Auto. Premium For Endorsements $ 1, o 0 Estimated Total Premium* $ 225 , o0 *This Policy May Be Subject To Final Audit. CA DS 03 03 06 0 ISO Properties, Inc., 2005 Page 3 of 11 ? ITEM THREE Schedule Of Covered Autos You Own Covered Auto Number: Town And State Where The Covered Auto Will Be Principally Garaged SEE SCHEDULE ATTACHED Description (Year, Model, Trade Name, Body Type, Serial Number (S), Vehicle Identification Number IN Original Cost New $ Purchased: Actual Cost New N Or Used U $ Classification Business Use Size GVW, Primary Radius s=service GCW Or Rating Secondary Of r--retail Vehicle Seating Age Factor Rating Operation c=commercial Capacity Group Liab. Ph y. Dam. Factor Code SEE SCHEDU E ATTACHED Except For Towing, All Physical Damage Loss Is Payable To You And The Loss Payee Named To The Right As Interests See Schedule(s) May Appear At the Time Of The Loss. Coverages - Premiums, Limits And Deductibles (Absence of a deductible or limit entry in any column below means that the limit or deductible entry in the corresponding Item Two column applies instead. Coverages Limit Premium Liability $ $ Personal Injury Stated In Each Personal Injury Protection $ Protection Endorsement Minus $ Deductible Shown Added Personal Stated In Each Added Personal Injury Protection $ Injury Protection Endorsement Property Protection Stated In The Property Protection Insurance $ Insurance Endorsement Minus (Michigan Only) $ Deductible Shown Auto Medical $ $ Payments SEE SCHEDULE A TTACHED Medical Expense And Stated In Each Medical Expense And Income Loss $ Income Loss Benefits Benefits Endorsement For Each Person (Virginia Only) Comprehensive Stated In Item Two Minus $ $ Deductible Shown Specified Causes Stated In Item Two Minus $ Of Loss $ 25 Deductible Shown Collision Stated In Item Two Minus $ $ Deductible Shown Towing And Labor $ Per Disablement $ Page 4 of 11 © ISO Properties, Inc., 2005 CA DS 03 03 06 ? ITEM THREE Schedule Of Covered Autos You Own (Cont'd) Covered Auto Number: Town And State Where The Covered Auto Will Be Principally Garaged Description (Year, Model, Trade Name, Body Type, Serial Number (S), Vehicle Identification Number (VIN)) Purchased: I Original Cost New Used Business Use Size GVW, Radius s=service GCW Or Of r=retail Vehicle Seating Aeration c=commercial Capacity SEE SCHEDU E ATTACHED SEE SCHEDULE ATTACHED Primary Rating Age Group Uab. Secondary Rating . Dam. Factor Code Except For Towing, All Physical Damage Loss Is Payable To You And The Loss Payee Named To The Right As Interests See Schedule May Appear At the Time Of The Loss. (S) Coverages - Premiums, Limits And Deductibles (Absence of a deductible or limit entry in any column below means that the limit or deductible entry in the corresponding Item Two column annlies imfoarl I Personal Injury Stated In Each Personal Injury Protection $ Protection Endorsement Minus $ Deductible Shown Added Personal Stated In Each Added Personal Injury Protection $ Injury Protection Endorsement Property Protection Stated In The Property Protection Insurance $ Insurance Endorsement Minus (Michigan Only) $ Deductible Shown Auto Medical $ $ Payments SEE SCHEDULE A TTACHED Medical Expense And Stated In Each Medical Expense And Income Loss $ Income Loss Benefits Benefits Endorsement For Each Person Comprehensive Specified Causes Of Loss Collision Towing And Labo Stated In Item Two Minus $ Stated In Item Two Minus $ 25 Stated In Item Two Minus Per Shown $ CA DS 03 03 06 © ISO Properties, Inc., 2005 Page 5 of 11 0, ITEM THREE Schedule Of Covered Autos You Own (Cont'd) Covered Auto Number: Town And State Where The Covered Auto Will Be Principally Garaged SEE SCHEDULE ATTACHED Description (Year, Model, Trade Name, Body Type, Serial Number (S), Vehicle Identification Number IN Original Cost New $ Purchased: Actual Cost New N Or Used U $ Classification Business Use Size GVW, Primary Radius s=service GCW Or Rating Secondary Of -retail Vehicle Seating Age Factor Rating Operation c=commercial Capacity Group Liab. Ph y. Dam. Factor Code SEE SCHEDU E ATTACHED Except For Towing, All Physical Damage Loss Is Payable To You And The Loss Payee Named To The Right As Interests See Schedule(s) May Appear At the Time Of The Loss. Coverages - Premiums, Limits And Deductibles (Absence of a deductible or limit entry in any column below means that the limit or deductible entry in the corresponding Item Two column applies instead. Coverages Limit Premium Liability $ $ Personal Injury Stated In Each Personal Injury Protection $ Protection Endorsement Minus $ Deductible Shown Added Personal Stated In Each Added Personal Injury Protection $ Injury Protection Endorsement Property Protection Stated In The Property Protection Insurance $ Insurance Endorsement Minus (Michigan Only) $ Deductible Shown Auto Medical $ $ Payments SEE SCHEDULE ACHED Medical Expense And Stated In Each Medical Expense And Income Loss $ Income Loss Benefits Benefits Endorsement For Each Person (Virginia Only) Comprehensive Stated In Item Two Minus $ $ Deductible Shown Specified Causes Stated In Item Two Minus $ Of Loss $ 25 Deductible Shown Collision Stated In Item Two Minus $ $ Deductible Shown Towin And Labor $ Per Disablement $ Page 6 of 11 © ISO Properties, Inc., 2005 CA DS 03 03 06 0 ITEM THREE Schedule Of Covered Autos You Own (Cont'd) CA DS 03 03 06 © ISO Properties, Inc., 2005 Page 7 of 11 F1 ?--, mu wtai amount you incur for the hire of "autos" you don't own (not including "autos" you borrow or rent from your partners or "employees" or their family members). Cost of hire does not include charges for services performed by motor carriers of property or passengers. ITEM FOUR Schedule Of Hired Or Borrowed Covered Auto Coverage And Premiums ITEM FOUR Schedule Of Hired Or Borrowed Covered Auto Coverage And Premiums (Cont'd) Physical Damage Coverage Coverages Limit Of Insurance Actual Cash Value Or Cost Of Repair, Whichever Is Less, Minus $ Deductible For Each Covered Auto But No Deductible Applies To Loss Caused B Fire Or Lightning. Comprehensive Estimated Annual Rate Per Each $100 Cost Of Hire Annual Cost Of Hire Premium Actual Cash Value Or Cost Of Repair, Whichever Is Less, Minus $ 25 Deductible Specified For Each Covered Auto For Loss Caused B Mischief Or Vandalism. Causes Of Loss Estimated Annual Rate Per Each $100 Cost Of Hire Annual Cost Of Hire Premium $ $ $ Actual Cash Value Or Cost Of Repair, Whichever Is Less, Minus $ Deductible For Each Covered Auto. Collision Estimated Annual Rate Per Each $100 Cost Of Hire Annual Cost Of Hire Premium $ $ $ Total Premium: $ ITEM FIVE Schedule For Non-Ownership Liability Named Insured's Business Rating Basis Number Premium Other Than Garage Number Of Employees 25 $ 123 Service Operations Number Of Partners $ And Other Than Social Service Agencies Garage Service Number Of Employees $ Operations Whose Principal Duty Involves The Operation Of Autos Social Service Number Of Employees $ Agencies Number Of Volunteers I s Total Premiums I s 123 Page 8 of 11 © ISO Properties, Inc., 2005 CA DS 03 03 06 ? ITEM SIX Schedule For Gross Receipts Or Mileage Basis - Liability Coverage - Public Auto Or Leasing Rental Concerns &i-- M ? %FuauVll 19V. ---- Check One Gross Recei is Per $100 Mileage Per Mile Estimated Yearl Rates Liability $ Auto Medical Payments $ Medical Expense Benefits VA Only) $ Income Loss Benefits VA Only) $ Premiums Liability $ Auto Medical Payments $ Medical Expense Benefits A Only) $ Income Loss Benefits A Only) $ VVHtl61V11 NV: -- Check One Gross Receipts Per $100 Milea a Per Mile Estimated Yeari : Rates Liability $ Auto Medical Payments $ Medical Expense Benefits VA Only) $ Income Loss Benefits VA Onl $ Premiums Liability $ Auto Medical Payments $ Medical Expense Benefits VA Only) $ Income Loss Benefits A Only) $ CA DS 03 03 06 © ISO Properties, Inc., 2005 Page 9 of 11 G ITEM SIX Schedule For Gross Receipts Or Mileage Basis - Liability Coverage - Public Auto Or Leasing Rental Concerns (Cont'd) Location No: Check One Gross Receipts Per $100 Mileage Per Mile Estimated Yearl : Rates Liability $ Auto Medical Payments $ Medical Expense Benefits A Only) $ Income Loss Benefits VA Only) $ Premiums Liability $ Auto Medical Payments $ Medical Expense Benefits A Only) $ Income Loss Benefits VA Only) $ Total Premiums Minimum Liability $ Minimum Auto Medical Payments $ Minimum Medical Expense Benefits VA Only) $ Minimum Income Loss Benefits A Only) $ Liability $ Auto Medical Payments $ Medical Expense Benefits A Only) $ Income Loss Benefits A Only) $ Location Number Address L Page 10 of 11 © ISO Properties, Inc., 2005 CA DS 03 03 06 ? When used as a premium basis: FOR PUBLIC AUTOS Gross Receipts means the total amount to which you are entitled for transporting passengers, mail or mer- chandise during the policy period regardless of whether you or any other carrier originate the transportation. Gross Receipts does not include: A. Amounts you pay to railroads, steamship lines, airlines and other motor carriers operating under their own ICC or PUC permits. B. Advertising revenue. C. Taxes which you collect as a separate item and remit directly to a governmental division. D. C.O.D. collections for cost of mail or merchandise including collection fees. Mileage means the total live and dead mileage of all revenue producing units operated during the policy pe- riod. FOR RENTAL OR LEASING CONCERNS Gross receipts means the total amount to which you are entitled for the leasing or rental of "autos" during the policy period and includes taxes except those taxes which you collect as a separate item and remit directly to a governmental division. Mileage means the total of all live and dead mileage developed by all the "autos" you leased or rented to oth- ers during the policy period. CA DS 03 03 06 © ISO Properties, Inc., 2005 Page 11 of 11 ? I Philadelphia Indemnity Insurance Company Form Schedule - Commercial Auto Policy Number: PHPK193247 Forms and Endorsements applying to this Coverage Part and made a part of this policy at time of issue: Form Edition Description CADS03 0306 Business Auto Declarations CA0001 0306 Business Auto Coverage Form CA0180 0997 Pennsylvania Changes CA2356 1102 Cap on Losses From Certified Acts of Terrorism Page 1 of PI CG DS 03 07 98 Philadelphia Indemnity Insurance Company POLICY NUMBER: PHPK193247 LIQUOR LIABILITY DECLARATIONS NAMED INSURED Automatic Bowling Centre, Inc MAILING ADDRESS ABC East, ABC West, ABC North 1001 Eisenhower Blvd Harrisburg, PA 17111-2314 POLICY PERIOD: FROM 09/30/2006 TO 09/30/2007 AT 12:01 A.M. TIME AT YOUR MAILING ADDRESS SHOWN ABOVE IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. LIMITS OF INSURANCE EACH COMMON CAUSE LIMIT $ 1,000,000 AGGREGATE LIMIT $ 1,000,000 RETROACTIVE DATE CG 00 34 ONLY) THIS INSURANCE DOES NOT APPLY TO " INJURY" WHICH OCCURS BEFORE THE RETROACTIVE DATE, IF ANY, SHOWN BELOW. RETROACTIVE DATE: NONE ENTER DATE OR "NONE" IF NO RETROACTIVE DATE APPLIES FORM OF BUSINESS: CORPORATION BUSINESS DESCRIPTION: Bowling Center Page 1 of 2 Includes copyrighted material of Insurance Services, Inc., with its permission PI C® DS 03 07 98 ALL PREMISES I LOCATION NUMBER I ADDRESS OF ALL PREMISES YOU OWN. RENT OR OCCUPY I SEE SCHEDULE ATTACHED CLASSIFICATION AND PREMIUM CLASSIFICATION CODE PREMIUM RATE ADVANCE PREMIUM NO. BASE SEE SCHEDULE $ $ $ ATTACHED TOTAL PREMIUM (SUBJECT TO AUDIT) $ 10,018.00 PREMIUM SHOWN IS PAYABLE: AT INCEPTION $ AT EACH ANNIVERSARY $ (IF POLICY PERIOD IS MORE THAN ONE YEAR AND PREMIUM IS PAID IN ANNUAL INSTALLMENTS) AUDIT PERIOD (IF APPLICABLE) ? ANNUALLY 13 SEMI- ? QUARTERLY 13 MONTHLY ANNUALLY ENDORSEMENTS ENDORSEMENTS ATTACHED TO THIS POLICY: SEE FORMS SCHEDULE THESE DECLARATIONS, TOGETHER WITH THE COMMON POLICY CONDITIONS AND COVERAGE FORM(S) AND ANY ENDORSEMENT(S), COMPLETE THE ABOVE NUMBERED POLICY. Countersigned Countersigned By: (Date) Authorized Representative) Page 2 of 2 Includes copyrighted material of Insurance Services, Inc., with its permission Philadelphia Indemnity Insurance Company Form Schedule - Liquor Liability Policy Number: PHPK193247 Forms and Endorsements applying to this Coverage Part and made a part of this policy at time of issue: Form Edition Description CGDS03 0798 Liquor Liability Declarations Liquor Liab Schedule 0204 Liquor Liability Schedule CGO033 1204 Liquor Liability Coverage Form CG2170 1102 Cap on Losses From Certified Acts of Terrorism CG2402 1204 Binding Arbitration Page 1 of 1 LIQUOFT SCH (Q2/04) LIQUOR LIABILITY SCHEDULE ALL PREMISES YOU OWN RENT OR OCCUPY LOCATION ADDRESS OF ALL PREMISES YOU OWN, RENT OR OCCUPY NUMBER 1 1001 Eisenhower Boulevard 2 6454 Carlisle Pike 3 5303 Locust Ln LOCATION NUMBER CLASSIFICATION CODE NO. PREMIUM BASE RATE ADVANCE PREMIUM 1 Restaurants, Taverns, hotels 58161 $ 141,000 $ 16.250 $ 2,312 2 Restaurants, Taverns, hotels 58161 $ 330,000 $ 16.250 $ 5,411 3 Restaurants, Taverns, hotels 58161 $ 140,000 $ 16.250 $ 2 , 295 Page 1 of PP-0701 07-01 PHILADELPHIA INSURANCE COMPANIES PRIVACY POLICY NOTICE Philadelphia Insurance Company & Philadelphia Indemnity Insurance Company The Philadelphia Insurance Companies values your privacy and we are committed to protecting personal information that we collect during the course of our business relationship. The collection, use and disclosure of certain nonpublic personal information are regulated by law. This notice is for your information only and requires no action on your part. It will inform you about the types of information we collect and how it may be disclosed. This does not reflect a change in the way we do business or handle your information. Information We Collect: We collect personal information about you from the following sources: • Applications or other forms such as claims forms or underwriting questionnaires completed by you; • Information about your transactions with us, our affiliates or others; and • Depending on the type of transaction you are conducting with us, information may be collected from consumer reporting agencies, health care providers, employers and other third parties. Information We Disclose: We will only disclose the information described above, as permitted by law, to our affiliates and non-affiliated third parties when necessary to conduct our normal business activities. For example, we may make disclosures to the following types of third parties: • Your agent or broker; • Parties who perform a business, professional or insurance function for our company, including our reinsurance companies; • Independent claims adjusters, investigators, other insurers, medical care institutions and attorneys who need the information to investigate, defend or settle a claim involving you; • Insurance regulatory agencies in connection with the regulation of our business; and • Lienholders, mortgagees, lessors or other persons shown on our records as having legal or beneficial interest in your policy. We do not sell your information to others for marketing purposes. We do not disclose the personal information of persons who have ceased to be our customers. Protection of Information: The Philadelphia Insurance Companies maintains physical, electronic and procedural safeguards that comply with state and federal regulations to protect the confidentiality of your personal information. We also limit employee access to personally identifiable information to those with a business reason for knowing such information. How to Contact Us: Feel free to call or write to us for additional information. Philadelphia Insurance Companies One Bala Plaza, Suite 100 Bala Cynwyd, Pennsylvania 19004 (877)-438-7459 Page 1 of 1 PI-BELL=1 (04/00) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BELL ENDORSEMENT Unless otherwise stated herein, the terms, conditions, exclusions and other limitations set forth in this endorsement are solely applicable to coverage afforded by this endorsement, and the policy is amended as follows: 1. SCHEDULE OF ADDITIONAL COVERAGES AND LIMITS The following is a summary of Limits of Insurance or Liability and/or additional coverages provided by this endorsement. This endorsement is subject to the provisions of the policy to which it is attached. Identity Theft Expense $5,000 Terrorism Travel Reimbursement $5,000 Emergency Real Estate Consulting Fee $5,000 Temporary Meeting Space Reimbursement $5,000 Workplace Violence Counseling $5,000 Kidnap Expense $50,000 Key Individual Replacement Expenses $50,000 Image Restoration and Counseling $5,000 Donation Assurance $5,000 Business Travel $5,000 II. CONDITIONS A. Applicability of Coverage Coverage provided by your policy and any endorsements attached thereto is amended by this endorsement where applicable. Page 1 of 7 PI-BELL-1 (04/06) B. Limits of Liability or Limits of Insurance When coverage is provided by this endorsement and another coverage form or endorsement attached to this policy, the greater limit of Limits of Liability or Limits of Insurance will apply. In no instance will multiple limits apply to coverages which may be duplicated within this policy. Additionally, If this policy and any other coverage part or policy issued to you by us, or any company affiliated with us, apply to the same occurrence, offense, wrongful act, accident or loss, the maximum Limits of Liability or Limit of Insurance under all such coverage parts or policies combined shall not exceed the highest applicable Limits of Liability or Limit of Insurance under any one coverage part or policy. 2. Limits of Liability or Limits of Insurance identified in Clause I. above are not excess of, but are in addition to the applicable Limits of Insurance stated in the Declarations. C. Claim Expenses Coverages provided herein are not applicable to the generation of claim adjustment costs by you; such as fees you may incur by retaining a public adjuster or appraiser. 111. ADDITIONAL COVERAGES A. Identity Theft Expense We will reimburse any present Director or Officer of the Named Insured, for "Identity Theft Expenses" incurred as the direct result of any "Identity Theft" first discovered and reported during the policy period; provided that it began to occur subsequent to the effective date of the Insured's first policy with the Company. The limit for this coverage will be $5,000 per policy period for all Insureds combined. No deductible applies to this coverage. B. Terrorism Travel Reimbursement The Company will reimburse any present Director or Officer of the Named Insured in the event of a "Certified Act of Terrorism" during the policy period which necessitates that he/she incurs "Emergency Travel Expenses." The limit for this coverage will be $5,000 per policy period for all Insureds combined. No deductible applies to this coverage. C. Emergency Real Estate Consulting Fee The Company will reimburse the Insured any realtor's fee or real estate consultant's fee necessitated by the Insured's need to relocate due to the "Unforeseeable destruction" of the Insured's principal location listed on the Declarations page during the policy period. The limit for this coverage will be $5,000 per policy period for all Insureds combined. No deductible applies to this coverage. D. Temporary Meeting Space Reimbursement The Company will reimburse the Insured for rental of meeting space which is Page 2 of 7 PI-BELL-1 (04/06) necessitated by the temporary unavailability of the Insured's primary office space due to the failure of a climate control system, or leakage of a hot water heater during the policy period. Coverage will exist only for the renting of temporary meeting space required for meeting with parties who are not insured under this policy. The limit for this coverage will be $5,000 per policy period for all Insureds combined. No deductible applies to this coverage. E. Workplace Violence Counseling In the event that an incidence of "workplace violence" occurs at any of the Insured's premises during the policy period, the Company will reimburse the Insured for expenses incurred for the emotional counseling of employees of the Insured, during the policy period. The limit for this coverage will be $5,000 per policy period for all Insureds combined. No deductible applies to this coverage. F. Kidnap Expense The Company will pay on behalf of any Officer or Director of the Insured, reasonable fees incurred as a result of the kidnapping of them or their spouse, "domestic partner", parent or child during the policy period, subject to a limit of $50,000 each Policy Period, but not subject to any deductible. Coverage will not apply to any kidnapping by or at the direction of any present or former family member of the victim. Reasonable fees will include: fees and expenses of an independent negotiator or consultant retained with prior approval of the Company; 2. interest on any loan taken by the Named Insured to pay Damages covered under this Policy; provided, however, that the Company shall not be liable for any interest accruing prior to thirty (30) days preceding the date of such payment, nor subsequent to the date of reimbursement from the Company for any portion of damages recoverable under this Policy; 3. costs of travel and accommodations incurred by the Named Insured which become necessary due to the applicable kidnapping; 4. the reward paid by the Named Insured, which is pre-approved by the Company, to an informant for information not otherwise available which leads to the arrest and conviction of persons responsible for any damages under this Policy; and 5. current salary to an Officer or Director of the Insured who is kidnapped; provided, however, that the employee shall be held for more than thirty (30) days. Salary shall be paid for a period commencing upon abduction and ceasing upon the earliest of either the release of the employee or discovery of the death of the employee, or 120 days after the Company receives the last credible evidence that the employee is still alive, or twelve ('12) months after the date of kidnapping, or the exhaustion of the kidnap expense limit, whichever comes first. G. Key Individual Replacement Expenses Page 3 of 7 PI-BELL-1 (04/06) The Company will pay "Key Individual Replacement Expenses" if the Chief Executive Officer or Executive Director suffers an "injury" during the Policy Period which results in the loss of life during the Policy Period. The "Key Individual Replacement Expenses" amount shall be the lesser of $50,000 or ten (10) times the annual premium paid for this policy. No deductible applies to this coverage. H. Image Restoration and Counseling The Company shall reimburse to the Insured expenses incurred for image restoration and counseling arising out of "Improper Acts" by any natural person Insured up to a limit of $5,000 per Policy Period for all Insureds combined. Covered expenses are limited to: the costs of rehabilitation and counseling for the accused natural person Insured provided the natural person Insured is not ultimately found guilty of criminal conduct, said reimbursement to occur after acquittal of the natural person Insured; 2. the costs, charged by a recruiter or expended on advertising, of replacing an Officer as a result of "Improper Acts"; and 3. the costs of restoring the Named Insured's reputation and consumer confidence through image consulting. No deductible applies to this coverage. 1. Donation Assurance The Company shall reimburse the insured for "Failed Donation Claim(s)". The limit for this coverage will be $5,000 per policy period for all Insureds combined. No deductible applies to this coverage. With respect to any "Failed Donation Claim", it is further agreed as follows: 1. the donor must never have been in bankruptcy, nor have filed for bankruptcy/reorganization prior to the time said pledge was made to the Insured; 2. for non-cash donations, payment by the Insurer of a "Failed Donation Claim" shall ,be based on the fair market value of said non-cash donation at the time of the Failed Donation Claim;" 3. in the case of unemploymentlincapacitation of a natural person donor and as a condition of payment of the "Failed Donation Claim;" (a) neither the natural person donor nor the Insured shall have had reason to believe the donor would become unemployed or incapacitated subsequent to the donation date and; (b) the donor shall be unemployed for at least 60 days prior to the Insurer making payment; 4. no coverage shall be afforded for a written pledge of funds or other measurable Page 4 of 7 PI-BELL-1 (04/06) tangible property to the Insured dated prior to the Policy Period; 5. a donation amount which is to be collected by the Insured over more than a 12 month period shall be deemed a single donation. J. Business Travel The Company will pay a Business Travel Accidental Death Benefit to the Named Insured if a Director or Officer suffers an "injury" while traveling on a common carrier for business purposes during the Policy Period which results in loss of life not later than 180 days after the Policy Period expiration, the date of cancellation or the date of non-renewal. The Accidental Death Benefit amount shall be $5,000 per occurrence. No deductible applies to this coverage. The "injury" must be reported to the Company during the Policy Period. The Business Travel Accidental Death Benefit shall not be payable if the cause of the "injury" that resulted in loss of life was: 1. an intentional act by the insured; 2. an act of suicide or attempted suicide, whether or not the deceased was sane or insane at the time of the attempted suicide; 3. an act of war; 4. a disease process. IV. Definitions A. "Certified Act of Terrorism", whenever used in this endorsement will mean any act so defined under the Terrorism Risk Insurance Act of 2002. B. "Domestic Partner", whenever used in this endorsement means any person who qualifies as a domestic partner under the provisions of any federal, state or local statute or regulation, or under the terms and provisions of any employee benefit or other program established by the Named Insured. C. "Emergency Travel Expenses", whenever used in this endorsement will mean: 1. hotel expenses incurred which directly result from the cancellation of a scheduled transport, by train or air, by a commercial transportation carrier resulting directly from and within forty-eight hours of a "Certified Act of Terrorism;" and 2. the increased amount incurred in air or train fare which may result from re- scheduling comparable transport, to replace a similarly scheduled transport canceled by a commercial transportation carrier in direct response to a "Certified Act of Terrorism." D. "Failed Donation Claim", whenever used in this endorsement will mean written notice to the Insured during the Policy Period of: Page 5 of 7 PI-BELL-1 (04/06) the bankruptcy or reorganization of any donor whereby such bankruptcy or reorganization prevents the donor from honoring a prior written pledge of funds or other measurable tangible property to the Insured; 2. the unemployment or incapacitation of a natural person donor preventing him/her from honoring a prior written pledge of funds or other measurable tangible property to the Insured. E. "Identity Theft ", whenever used in this endorsement means the act of knowingly trans- ferring or using, without lawful authority, a means of identification of any Officer or Director (or spouse thereof) of the Named Insured with the intent to commit, or to aid or abet another to commit, any unlawful activity that constitutes a violation of federal law or a felony under any applicable state or local law. F. "Identity Theft Expenses", whenever used in this endorsement means: 1. costs for notarizing affidavits or similar documents attesting to fraud required by financial institutions or similar credit grantors or credit agencies; 2. costs for certified mail to law enforcement agencies, credit agencies, financial institutions or similar credit grantors; 3. loan application fees for re-applying for a loan or loans when the original application is rejected solely because the lender received incorrect credit information. G. "Improper Acts", whenever used in this endorsement means any actual or alleged act of. sexual abuse; 2. sexual intimacy; 3. sexual molestation; and/or 4. sexual assault; committed by an Insured against any natural person who is not an Insured. Such "Improper Acts" must have been committed by the Insured while in his or her capacity as an insured. H. "injury", whenever used in this endorsement means any physical damage to the body caused by violence, fracture or an accident that results in physical damage or hurt. 1. "Key Individual Replacement Expenses", whenever used in this endorsement means the following necessary expenses: 1. costs of advertising the employment position opening; 2. travel, lodging, meal and entertainment expenses incurred in interviewing job Page 6 of 7 PI-BELIA (04/06) applicants for the employment position opening; and 3. miscellaneous extra expenses incurred in finding, interviewing and negotiating with the job applicants, including, but not limited to, overtime pay, costs to verify the background and references of the applicants and legal expenses incurred to draw up employment contracts. J. "Unforeseeable Destruction", whenever used in this endorsement means damage resulting from a "Certified Act of Terrorism", fire, crash or collapse which renders all of the Insured's primary office completely unusable. K. "Workplace violence", whenever used in this endorsement means any intentional use of or threat to use deadly force by any natural person, with intent to cause harm and that results in bodily "injury" or death of a member of the Insured or any other natural person while on the Insured's premises. Page 7 of 7 IL 00 17 11 98 COMMON POLICY CONDITIONS All Coverage Parts included in this policy are subject to the following conditions. A. Cancellation 1. The first Named insured shown in the Declara- tions may cancel this policy by mailing or de- livering to us advance written notice of cancel- lation. 2. We may cancel this policy by mailing or deliv- ering to the first Named Insured written notice of cancellation at least: a. 10 days before the effective date of cancel- lation if we cancel for nonpayment of pre- mium; or b. 30 days before the effective date of cancel- lation if we cancel for any other reason. 3. We will mail or deliver our notice to the first Named Insured's last mailing address known to us. 4. Notice of cancellation will state the effective date of cancellation. The policy period will end on that date. 5. If this policy is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata. If the first Named Insured cancels, the refund may be less than pro rata. The cancellation will be ef- fective even if we have not made or offered a refund. 6. If notice is mailed, proof of mailing will be suf- ficient proof of notice. B. Changes This policy contains all the agreements between you and us concerning the insurance afforded. The first Named Insured shown in the Declara- tions is authorized to make changes in the terms of this policy with our consent. This policy's terms can be amended or waived only by endorsement issued by us and made a part of this policy. C. Examination Of Your Books And Records We may examine and audit your books and rec- ords as they relate to this policy at any time during the policy period and up to three years afterward. D. Inspections And Surveys 1. We have the right to: a. Make inspections and surveys at any time; b. Give you reports on the conditions we find; and c. Recommend changes. 2. We are not obligated to make any inspections, surveys, reports or recommendations and any such actions we do undertake relate only to in- surability and the premiums to be charged. We do not make safety inspections. We do not un- dertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. And we do not warrant that conditions: a. Are safe or healthful; or b. Comply with laws, regulations, codes or standards. 3. Paragraphs 1. and 2. of this condition apply not only to us, but also to any rating, advisory, rate service or similar organization which makes insurance inspections, surveys, reports or recommendations. 4. Paragraph 2. of this condition does not apply to any inspections, surveys, reports or recom- mendations we may make relative to certifica- tion, under state or municipal statutes, ordi- nances or regulations, of boilers, pressure ves- sels or elevators. E. Premiums The first Named Insured shown in the Declara- tions: 1. Is responsible for the payment of all premiums; and 2. Will be the payee for any return premiums we pay. F. Transfer Of Your Rights And Duties Under This Policy Your rights and duties under this policy may not be transferred without our written consent except in the case of death of an individual named in- sured. If you die, your rights and duties will be trans- ferred to your legal representative but only while acting within the scope of duties as your legal rep- resentative. Until your legal representative is ap- pointed, anyone having proper temporary custody of your property will have your rights and duties but only with respect to that property. IL 00 17 11 98 Copyright, Insurance Services Office, Inc., 1998 Page 1 of 1 ? IL 00210702 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT (Broad Form) This endorsement modifies insurance provided under the following: COMMERCIAL AUTOMOBILE COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART FARM COVERAGE PART LIQUOR LIABILITY COVERAGE PART OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART PROFESSIONAL LIABILITY COVERAGE PART RAILROAD PROTECTIVE LIABILITY COVERAGE PART UNDERGROUND STORAGE TANK POLICY 1. The insurance does not apply: B. Under any Medical Payments coverage, to A. Under any Liability Coverage, to "bodily injury" expenses incurred with respect to "bodily in- or "property damage": jury" resulting from the "hazardous properties" (1) With respect to which an "insured" under of "nuclear material" and arising out of the op- eration of a "nuclear facility" by any person or the policy is also an insured under a nu- organization. clear energy liability policy issued by Nu- clear Energy Liability Insurance Associa- C. Under any Liability Coverage, to "bodily injury" tion, Mutual Atomic Energy Liability or "property damage" resulting from "hazard- Underwriters, Nuclear Insurance Associa- ous properties" of "nuclear material", if: tion of Canada or any of their successors, (1) The "nuclear material" (a) is at any "nuclear or would be an insured under any such pol- facility" owned by, or operated by or on be- icy but for its termination upon exhaustion half of, an "insured" or (b) has been dis- of its limit of liability; or charged or dispersed therefrom; (2) Resulting from the "hazardous properties" (2) The "nuclear material" is contained in of "nuclear material" and with respect to "spent fuel" or "waste" at any time pos- which (a) any person or organization is re- sessed, handled, used, processed, stored, quired to maintain financial protection pur- transported or disposed of, by or on behalf suant to the Atomic Energy Act of 1954, or of an "insured"; or any law amendatory thereof, or (b) the "in- sured" is, or had this policy not been issued (3) The "bodily injury" or "property damage" " would be, entitled to indemnity from the arises out of the furnishing by an insured" United States of America, or any agency of services, materials, parts or equipment in connection with the planning construction thereof, under any agreement entered into by the United States of America or any , , maintenance, operation or use of any "nu- " , agency thereof, with any person or organi- clear facility , but if such facility is located within the United States of America its terri- zation. , tories or possessions or Canada, this ex- clusion (3) applies only to "property dam- age" to such "nuclear facility" and any property thereat. IL 00 21 07 02 © ISO Properties, Inc., 2001 Page 1 of 2 ? 2. As used in this endorsement: "Hazardous properties" includes radioactive, toxic or explosive properties. "Nuclear material" means "source material", "Spe- cial nuclear material" or "by-product material". "Source material", "special nuclear material", and "by-product material" have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof. "Spent fuel" means any fuel element or fuel com- ponent, solid or liquid, which has been used or exposed to radiation in a "nuclear reactor". "Waste" means any waste material (a) containing by-product material" other than the tailings or wastes produced by the extraction or concentra- tion of uranium or thorium from any ore processed primarily for its "source material" content, and (b) resulting from the operation by any person or or- ganization of any "nuclear facility" included under the first two paragraphs of the definition of "nu- clear facility". "Nuclear facility" means: (a) Any "nuclear reactor"; (b) Any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing "spent fuel", or (3) handling, processing or packag- ing "waste"; (c) Any equipment or device used for the proc- essing, fabricating or alloying of "special nuclear material" if at any time the total amount of such material in the custody of the "insured" at the premises where such equipment or device is located consists of or contains more than 25 grams of pluto- nium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235; (d) Any structure, basin, excavation, premises or place prepared or used for the storage or disposal of "waste"; and includes the site on which any of the forego- ing is located, all operations conducted on such site and all premises used for such operations. "Nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self- supporting chain reaction or to contain a critical mass of fissionable material. "Property damage" includes all forms of radioac- tive contamination of property. Page 2 of 2 © ISO Properties, Inc., 2001 IL 00 21 07 02 ? IL 01 66 07 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PENNSYLVANIA CHANGES - ACTUAL CASH VALUE This endorsement modifies insurance provided under the following: BOILER AND MACFHNERY COVERAGE PART CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART CRIME AND FIDELITY COVERAGE PART FARM COVERAGE PART STANDARD PROPERTY POLICY The following is added to any provision which uses the term actual cash value: Actual cash value is calculated as the amount it would cost to repair or replace Covered Property, at the time of loss or damage, with material of like kind and quality, subject to a deduction for deterioration, depreciation and obsolescence. Actual cash value applies to valuation of Covered Property regardless of whether that property has sustained partial or total loss or damage. The actual cash value of the lost or damaged prop- erty may be significantly less than its replacement cost. IL 01 66 07 02 0 ISO Properties, Inc., 2001 Page 1 of 1 11 IL 01 72 07 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PENNSYLVANIA CHANGES This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART CRIME AND FIDELITY COVERAGE PART FARM COVERAGE PART A. For insurance provided under the: Boiler and Machinery Coverage Part Capital Assets Program (Output Policy) Coverage Part Commercial Inland Marine Coverage Part Commercial Crime Coverage Part Commercial Property Coverage Part The TRANSFER OF YOUR RIGHTS AND DU- TIES UNDER THIS POLICY Common Policy Condition is replaced by the following: F. TRANSFER OF YOUR RIGHTS AND DUTIES UNDER. THIS POLICY Your rights and duties under this policy may not be transferred without our written consent except in the case of death of an individual named insured. If you die, your rights and duties will be trans- ferred to your legal representative but only while acting within the scope of duties as your legal representative. Until your legal represen- tative is appointed, anyone having proper tem- porary custody of your property will have your rights and duties but only with respect to that property. If you die, this Coverage Part will remain in ef- fect as provided in 1. or 2. below, whichever is later: 1. For 180 days after your death regardless of the policy period shown in the Declarations, unless the insured property is sold prior to that date; or 2. Until the end of the policy period shown in the Declarations, unless the insured prop- erty is sold prior to that date. Coverage during the period of time after your death is subject to all provisions of this policy including payment of any premium due for the policy period shown in the Declarations and any extension of that period. B. For insurance provided under the: Capital Assets Program (Output Policy) Coverage Part Commercial Inland Marine Coverage Part Commercial Property Coverage Part Farm Coverage Part The following is added to the LOSS PAYMENT Loss Condition and supersedes any provision to the contrary: NOTICE OF ACCEPTANCE OR DENIAL OF CLAIM 1. Except as provided in 3. below, we will give you notice, within 15 working days after we re- ceive a properly executed proof of loss, that we: a. Accept your claim; b. Deny your claim; or c. Need more time to determine whether your claim should be accepted or denied. If we deny your claim, such notice will be in writing, and will state any policy provision, con- dition or exclusion used as a basis for the de- nial. If we need more time to determine whether your claim should be accepted or denied, the written notice will state the reason why more time is required. IL 01 72 07 02 C ISO Properties, Inc., 2001 Page 1 of 2 ? 2. If we have not completed our investigation, we will notify you again in writing, within 30 days after the date of the initial notice as provided in 1.c. above, and thereafter every 45 days. The written notice will state why more time is needed to investigate your claim and when you may expect us to reach a decision on your claim. 3. The notice procedures in 1. and 2. above do not apply if we have a reasonable basis, sup- ported by specific information, to suspect that an insured has fraudulently caused or contrib- uted to the loss by arson or other illegal activ- ity. Under such circumstances, we will notify you of the disposition of your claim within a pe- riod of time reasonable to allow full investiga- tion of the claim, after we receive a properly executed proof of loss. Page 2 of 2 © ISO Properties, Inc., 2001 IL 01 72 07 02 ? IL 02 46 07 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PENNSYLVANIA CHANGES - CANCELLATION AND NONRENEWAL This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART COMMERCIAL AUTOMOBILE COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL LIABILITY UMBRELLA COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART CRIME AND FIDELITY COVERAGE PART EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART FARM COVERAGE PART FARM UMBRELLA LIABILITY POLICY LIQUOR LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART A. The Cancellation Common Policy Condition is replaced by the following: CANCELLATION 1. The first Named Insured shown in the Declara- tions may cancel this policy by writing or giving notice of cancellation. 2. Cancellation Of Policies In Effect For Less Than 60 Days We may cancel this policy by mailing or deliv- ering to the first Named Insured written notice of cancellation at least 30 days before the ef- fective date of cancellation. 3. Cancellation Of Policies In Effect For 60 Days Or More If this policy has been in effect for 60 days or more or if this policy is a renewal of a policy we issued, we may cancel this policy only for one or more of the following reasons: a. You have made a material misrepresenta- tion which affects the insurability of the risk. Notice of cancellation will be mailed or de- livered at least 15 days before the effective date of cancellation. b. You have failed to pay a premium when due, whether the premium is payable di- rectly to us or our agents or indirectly under a premium finance plan or extension of credit. Notice of cancellation will be mailed at least 15 days before the effective date of cancellation. c. A condition, factor or loss experience mate- rial to insurability has changed substantially or a substantial condition, factor or loss ex- perience material to insurability has be- come known during the policy period. No- tice of cancellation will be mailed or delivered at least 60 days before the effec- tive date of cancellation. d. Loss of reinsurance or a substantial de- crease in reinsurance has occurred, which loss or decrease, at the time of cancella- tion, shall be certified to the Insurance Commissioner as directly affecting in-force policies. Notice of cancellation will be mailed or delivered at least 60 days before the effective date of cancellation. e. Material failure to comply with policy terms, conditions or contractual duties. Notice of cancellation will be mailed or delivered at least 60 days before the effective date of cancellation. IL 02 46 07 02 © ISO Properties, Inc., 2001 Page 1 of 2 f. Other reasons that the Insurance Commis- sioner may approve. Notice of cancellation will be mailed or delivered at least 60 days before the effective date of cancellation. This policy may also be cancelled from inception upon discovery that the policy was obtained through fraudulent statements, omissions or con- cealment of facts material to the acceptance of the risk or to the hazard assumed by us. 4. We will mail or deliver our notice to the first Named Insured's last mailing address known to us. Notice of cancellation will state the specific reasons for cancellation. 5. Notice of cancellation will state the effective date of cancellation. The policy period will end on that date. 6. If this policy is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata and will be returned within 10 business days after the ef- fective date of cancellation. If the first Named Insured cancels, the refund may be less than pro rata and will be returned within 30 days af- ter the effective date of cancellation. The can- cellation will be effective even if we have not made or offered a refund. 7. If notice is mailed, it will be by registered or first class mail. Proof of mailing will be sufficient proof of notice. B. The following are added and supersede any provi- sions to the contrary: 1. Nonrenewal If we decide not to renew this policy, we will mail or deliver written notice of nonrenewal, stating the specific reasons for nonrenewal, to the first Named Insured at least 60 days before the expiration date of the policy. 2. Increase Of Premium If we increase your renewal premium, we will mail or deliver to the first Named Insured writ- ten notice of our intent to increase the premium at least 30 days before the effective date of the premium increase. Any notice of nonrenewal or renewal premium in- crease will be mailed or delivered to the first Named Insured's last known address. If notice is mailed, it will be by registered or first class mail. Proof of mailing will be sufficient proof of notice. Page 2 of 2 © ISO Properties, Inc., 2001 IL 02 46 07 02 ? IL 09 10 07 02 PENNSYLVANIA NOTICE An Insurance Company, its agents, employees, or service contractors acting on its behalf, may provide services to reduce the likelihood of injury, death or loss. These services may include any of the following or related services incident to the application for, issuance, renewal or continuation of, a policy of in- surance: 1. Surveys; 2. Consultation or advice; or 3. Inspections. The "Insurance Consultation Services Exemption Act" of Pennsylvania provides that the Insurance Com- pany, its agents, employees or service contractors acting on its behalf, is not liable for damages from injury, death or loss occurring as a result of any act or omission by any person in the furnishing of or the failure to furnish these services. The Act does not apply: 1. If the injury, death or loss occurred during the actual performance of the services and was caused by the negligence of the Insurance Com- pany, its agents, employees or service contrac- tors; 2. To consultation services required to be performed under a written service contract not related to a policy of insurance; or 3. If any acts or omissions of the Insurance Com- pany, its agents, employees or service contractors are judicially determined to constitute a crime, ac- tual malice, or gross negligence. Instruction to Policy Writers Attach the Pennsylvania Notice to all new and renewal certificates insuring risks located in Pennsylvania IL 09 10 07 02 © ISO Properties, Inc., 2001 Page 1 of 1 ? IL 09 5211 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CAP ON LOSSES FROM CERTIFIED ACTS OF TERRORISM This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART COMMERCIAL CRIME COVERAGE FORM COMMERCIAL CRIME POLICY COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART EMPLOYEE THEFT AND FORGERY POLICY FARM COVERAGE PART GOVERNMENT CRIME COVERAGE FORM GOVERNMENT CRIME POLICY KIDNAP/RANSOM AND EXTORTION COVERAGE FORM KIDNAP/RANSOM AND EXTORTION POLICY STANDARD PROPERTY POLICY A. Cap On Certified Terrorism Losses "Certified act of terrorism" means an act that is certified by the Secretary of the Treasury, in con- currence with the Secretary of State and the Attor- ney General of the United States, to be an act of terrorism pursuant to the federal Terrorism Risk Insurance Act of 2002. The criteria contained in that Act for a "certified act of terrorism" include the following: 1. The act resulted in aggregate losses in excess of $5 million; and 2. The act is a violent act or an act that is danger- ous to human life, property or infrastructure and is committed by an individual or individuals acting on behalf of any foreign person or for- eign interest, as part of an effort to coerce the civilian population of the United States or to in- fluence the policy or affect the conduct of the United States Government by coercion. With respect to any one or more "certified acts of terrorism" under the federal Terrorism Risk Insur- ance Act of 2002, we will not pay any amounts for which we are not responsible under the terms of that Act (including subsequent action of Congress pursuant to the Act) due to the application of any clause which results in a cap on our liability for payments for terrorism losses. B. Application Of Exclusions The terms and limitations of any terrorism exclu- sion, or the inapplicability or omission of a terror- ism exclusion, do not serve to create coverage for any loss which would otherwise be excluded under this Coverage Part or Policy, such as losses ex- cluded by the Nuclear Hazard Exclusion or the War And Military Action Exclusion. IL 09 62 11 02 0 ISO Properties, Inc., 2002 Page 1 of 1 ? POLICY NUMBER: PHPK193247 IL 09 85 01 03 THIS ENDORSEMENT IS ATTACHED TO AND MADE PART OF YOUR POLICY IN RESPONSE TO THE DISCLOSURE REQUIREMENTS OF THE TERRORISM RISK INSUR- ANCE ACT OF 2002. THIS ENDORSEMENT DOES NOT GRANT ANY COVERAGE OR CHANGE THE TERMS AND CONDITIONS OF ANY COVERAGE UNDER THE POLICY. DISCLOSURE PURSUANT TO TERRORLW RISK INSURANCE ACT OF 2002 SCHEDULE* A. Disclosure Of Premium In accordance with the federal Terrorism Risk In- surance Act of 2002, we are required to provide you with a notice disclosing the portion of your premium, if any, attributable to coverage for terror- ist acts certified under that Act. The portion of your premium attributable to such coverage is shown in the Schedule of this endorsement or in the policy Declarations. B. Disclosure Of Federal Participation In Payment Of Terrorism Losses The United States Government, Department of the Treasury, will pay a share of terrorism losses in- sured under the federal program. The federal share equals 90% of that portion of the amount of such insured losses that exceeds the applicable insurer retention. IL 09 85 01 03 © ISO Properties, Inc., 2003 Page 1 of 1 ri COMMERCIAL PROPERTY CP 0010 04 02 BUILDING AND PERSONAL PROPERTY COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "bur" refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to Section H. - Definitions. A. Coverage We will pay for direct physical loss of or damage to Covered Property at the premises described in the Declarations caused by or resulting from any Cov- ered Cause of Loss. 1. Covered Property Covered Property, as used in this Coverage Part, means the type of property described in this Section, A.1., and limited in A.2., Property Not Covered, if a Limit of Insurance is shown in the Declarations for that type of property. a. Building, meaning the building or structure described in the Declarations, including: (1) Completed additions; (2) Fixtures, including outdoor fixtures; (3) Permanently installed: (a) Machinery and (b) Equipment; (4) Personal property owned by you that is used to maintain or service the building or structure or its premises, including: (a) Fire extinguishing equipment; (b) Outdoor furniture; (c) Floor coverings; and (d) Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering; 5) If not covered by other insurance: (a) Additions under construction, altera- tions and repairs to the building or structure; (b) Materials, equipment, supplies and temporary structures, on or within 100 feet of the described premises, used for making additions, altera- tions or repairs to the building or structure. b. Your Business Personal Property located in or on the building described in the Decla- rations or in the open (or in a vehicle) within 100 feet of the described premises, con- sisting of the following unless otherwise specified in the Declarations or on the Your Business Personal Property - Separation of Coverage form: (1) Furniture and fixtures; (2) Machinery and equipment; (3) "Stock"; (4) All other personal property owned by you and used in your business; (5) Labor, materials. or services furnished or arranged by you on personal property of others; (6) Your use interest as tenant in improve- ments and betterments. Improvements and betterments are fixtures, alterations, installations or additions: (a) Made a part of the building or struc- ture you occupy but do not own; and (b) You acquired or made at your ex- pense but cannot legally remove; (7) Leased personal property for which you have a contractual responsibility to in- sure, unless otherwise provided for un- der Personal Property of Others. CP 00 10 04 02 © ISO Properties, Inc., 2001 Page 1 of 14 ? c. Personal Property Of Others that is: (1) In your care, custody or control; and (2) Located in or on the building described in the Declarations or in the open (or in a vehicle) within 100 feet of the described premises. However, our payment for loss of or dam- age to personal property of others will only be for the account of the owner of the prop- erty. 2. Property Not Covered Covered Property does not include: a. Accounts, bills, currency, food stamps or other evidences of debt, money, notes or securities. Lottery tickets held for sale are not securities; b. Animals, unless owned by others and boarded by you, or if owned by you, only as "stock" while inside of buildings; c. Automobiles held for sale; d. Bridges, roadways, walks, patios or other paved surfaces; e. Contraband, or property in the course of illegal transportation or trade; f. The cost of excavations, grading, backfllling or filling; g. Foundations of buildings, structures, ma- chinery or boilers if their foundations are below: (1) The lowest basement floor; or (2) The surface of the ground, if there is no basement; h. Land (including land on which the property is located), water, growing crops or lawns; i. Personal property while airborne or water- borne; j. Bulkheads, pilings, piers, wharves or docks; k. Property that is covered under another coverage form of this or any other policy in which it is more specifically described, ex- cept for the excess of the amount due (whether you can collect on it or not) from that other insurance; 1. Retaining walls that are not part of a build- ing; m. Underground pipes, flues or drains; n. Electronic data, except as provided under Additional Coverages - Electronic Data. Electronic data means information, facts or computer programs stored as or on, created or used on, or transmitted to or from com- puter software (including systems and ap- plications software), on hard or floppy disks, CD-ROMs, tapes, drives, cells, data proc- essing devices or any other repositories of computer software which are used with electronically controlled equipment. The term computer programs, referred to in the foregoing description of electronic data, means a set of related electronic instruc- tions which direct the operations and func- tions of a computer or device connected to it, which enable the computer or device to receive, process, store, retrieve or send data. This Paragraph n., does not apply to your "stock" of prepackaged software. o. The cost to replace or restore the informa- tion on valuable papers and records, in- cluding those which exist as electronic data. Valuable papers and records include but are not limited to proprietary information, books of account, deeds, manuscripts, ab- stracts, drawings and card index systems. Refer to the Coverage Extension for Valu- able Papers And Records (Other Than Electronic Data) for limited coverage for valuable papers and records other than those which exist as electronic data. p. Vehicles or self-propelled machines (in- cluding aircraft or watercraft) that: (1) Are licensed for use on public roads; or (2) Are operated principally away from the described premises. This paragraph does not apply to: (a) Vehicles or self-propelled machines or autos you manufacture, process or warehouse; (b) Vehicles or self-propelled machines, other than autos, you hold for sale; (c) Rowboats or canoes out of water at the described premises; or (d) Trailers, but only to the extent provided for in the Coverage Extension for Non- Owned Detached Trailers. Page 2 of 14 © ISO Properties, Inc., 2001 CP 00 10 04 02 q. The following property while outside of buildings: (1) Grain, hay, straw or other crops; (2) Fences, radio or television antennas (including satellite dishes) and their lead- in wiring, masts or towers, signs (other than signs attached to buildings), trees, shrubs or plants (other than "stack" of trees, shrubs or plants), all except as provided in the Coverage Extensions. 3. Covered Causes Of Loss See applicable Causes of Loss Form as shown in the Declarations. 4. Additional Coverages a. Debris Removal (1) Subject to Paragraphs (3) and (4), we will pay your expense to remove debris of Covered Property caused by or re- sulting from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are re- ported to us in writing within 180 days of the date of direct physical loss or dam- age. (2) Debris Removal does not apply to costs to: (a) Extract "pollutants" from land or water; or (b) Remove, restore or replace polluted land or water. (3) Subject to the exceptions in Paragraph (4), the following provisions apply: (a) The most we will pay for the total of direct physical loss or damage plus debris removal expense is the Limit of Insurance applicable to thr ered Property that has sustaine or damage. (b) Subject to (a) above, the amour will pay for debris removal exp is limited to 25% of the sum of deductible plus the amount that pay for direct physical loss or di age to the Covered Property that I sustained loss or damage. (4) We will pay up to an additional $10,01 for debris removal expense, for each It cation, in any one occurrence of physic, i....- - An-a in Covered Property, i (a) The total of the actual debris removal expense plus the amount we pay for direct physical loss or damage ex- ceeds the Limit of Insurance on the Covered Property that has sustained loss or damage. (b) The actual debris removal expense exceeds 25% of the sum of the de- ductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has sus- tained loss or damage. Therefore, if (4)(a) and/or (4)(b) apply, our total payment for direct physical loss or damage and debris removal expense may reach but will never exceed the Limit of Insurance on the Covered Prop- erty that has sustained loss or damage, plus $10,000. (5) Examples The following examples assume that there is no coinsurance penalty. Example #1 Limit of Insurance $ 90,000 Amount of Deductible $ 500 Amount of Loss $ 50,000 Amount of Loss Payable $ 49,500 ($50,000 - $500) Debris Removal Expense $ 10,000 Debris Removal Expense Payable $ 10,000 ($10,000 is 20% of $50,000) -a 0 C, i5 0? o ° o-" CD CD CP m o r q. The following property while outside of buildings: (1) Grain, hay, straw or other crops; (2) Fences, radio or television antennas (including satellite dishes) and their lead- in wiring, masts or towers, signs (other than signs attached to buildings), trees, shrubs or plants (other than "stock" of trees, shrubs or plants), all except as provided in the Coverage Extensions. 3. Covered Causes Of Loss See applicable Causes of Loss Form as shown in the Declarations. 4. Additional Coverages a. Debris Removal (1) Subject to Paragraphs (3) and (4), we will pay your expense to remove debris of Covered Property caused by or re- sulting from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are re- ported to us in writing within 180 days of the date of direct physical loss or dam- age. (2) Debris Removal does not apply to costs to: (a) Extract "pollutants" from land or water; or (b) Remove, restore or replace polluted land or water. (3) Subject to the exceptions in Paragraph (4), the following provisions apply: (a) The most we will pay for the total of direct physical loss or damage plus debris removal expense is the Limit of Insurance applicable to the Cov- ered Property that has sustained loss or damage. (b) Subject to (a) above, the amount we will pay for debris removal expense is limited to 25% of the sum of the deductible plus the amount that we pay for direct physical loss or dam- age to the Covered Property that has sustained loss or damage. (4) We will pay up to an additional $10,000 for debris removal expense, for each lo- cation, in any one occurrence of physical loss or damage to Covered Property, if one or both of the following circum- stances apply: (a) The total of the actual debris removal expense plus the amount we pay for direct physical loss or damage ex- ceeds the Limit of Insurance on the Covered Property that has sustained loss or damage. (b) The actual debris removal expense exceeds 25% of the sum of the de- ductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has sus- tained loss or damage. Therefore, if (4)(a) and/or (4)(b) apply, our total payment for direct physical loss or damage and debris removal expense may reach but will never exceed the Limit of Insurance on the Covered Prop- erty that has sustained loss or damage, plus $10,000. (5) Examples The following examples assume that there is no coinsurance penalty. Example #1 Limit of Insurance $ 90,000 Amount of Deductible $ 500 Amount of Loss $ 50,000 Amount of Loss Payable $ 49,500 ($50,000 - $500) Debris Removal Expense $ 10,000 Debris Removal Expense Payable $ 10,000 ($10,000 is 20% of $50,000) The debris removal expense is less than 25% of the sum of the loss payable plus the deductible. The sum of the loss pay- able and the debris removal expense ($49,500 + $10,000 = $59,500) is less than the Limit of Insurance. Therefore the full amount of debris removal ex- pense is payable in accordance with the terms of Paragraph (3). CP 00 10 04 02 © ISO Properties, Inc., 2001 Page 3 of 14 ? Example #2 Limit of Insurance $ 90,000 Amount of Deductible $ 500 Amount of Loss $ 80,000 Amount of Loss Payable $ 79,500 ($80,000 - $500) Debris Removal Expense $ 30,000 Debris Removal Expense Payable Basic Amount $ 10,500 Additional Amount $ 10,000 The basic amount payable for debris removal expense under the terms of Paragraph (3) is calculated as follows: $80,000 ($79,500 + $500) x .25 = $20,000; capped at $10,500. The cap applies because the sum of the loss payable ($79,500) and the basic amount payable for debris removal expense ($10,500) cannot exceed the Limit of In- surance ($90,000). The additional amount payable for debris removal expense is provided in accor- dance with the terms of Paragraph (4), because the debris removal expense ($30,000) exceeds 25% of the loss pay- able plus the deductible ($30,000 is 37.5% of $80,000), and because the sum of the loss payable and debris re- moval expense ($79,500 + $30,000 = $109,500) would exceed the Limit of In- surance ($90,000). The additional amount of covered debris removal ex- pense is $10,000, the maximum payable under Paragraph (4). Thus the total pay- able for debris removal expense in this example is $20,500; $9,500 of the debris removal expense is not covered. b. Preservation Of Property If it is necessary to move Covered Property from the described premises to preserve it from loss or damage by a Covered Cause of Loss, we will pay for any direct physical loss or damage to that property: (1) While it is being moved or while tempo- rarily stored at another location; and (2) Only if the loss or damage occurs within 30 days after the property is first moved. c. Fire Department Service Charge When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay up to $1,000 for your liability for fire department service charges: (1) Assumed by contract or agreement prior to loss; or (2) Required by local ordinance. No Deductible applies to this Additional Coverage. d. Pollutant Clean Up And Removal We will pay your expense to extract "pollut- ants" from land or water at the described premises if the discharge, dispersal, seep- age, migration, release or escape of the "pollutants" is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date on which the Covered Cause of Loss occurs. This Additional Coverage does not apply to costs to test for, monitor or assess the ex- istence, concentration or effects of "pollut- ants". But we will pay for testing which is performed in the course of extracting the "pollutants" from the land or water. The most we will pay under this Additional Coverage for each described premises is $10,000 for the sum of all covered ex- penses arising out of Covered Causes of Loss occurring during each separate 12 month period of this policy. e. Increased Cost Of Construction (1) This Additional Coverage applies only to buildings to which the Replacement Cost Optional Coverage applies. (2) In the event of damage by a Covered Cause of Loss to a building that is Cov- ered Property, we will pay the increased costs incurred to comply with enforce- ment of an ordinance or law in the course of repair, rebuilding or replace- ment of damaged parts of that property, subject to the limitations stated in e.(3) through e.(9) of this Additional Cover- age. Page 4 of 14 © ISO Properties, Inc., 2001 CP 00 10 04 02 ? (3) The ordinance or law referred to in e.(2) (ii) Unless the repairs or replacement of this Additional Coverage is an ordi- are made as soon as reasonably nance or law that regulates the con- possible after the loss or damage, struction or repair of buildings or estab- not to exceed two years. We may lishes zoning or land use requirements extend this period in writing dur- at the described premises, and is in ing the two years. force at the time of loss. (b) If the building is repaired or replaced (4) Under this Additional Coverage, we will at the same premises, or if you elect not pay any costs due to an ordinance or to rebuild at another premises, the law that: most we will pay for the Increased (a) You were required to comply with Cost of Construction, subject to the before the loss, even when the provisions of e.(6) of this Additional building was undamaged; and Coverage, is the increased cost of (b) You failed to comply with. construction at the same premises. (5) Under this Additional Coverage we will (c) If the ordinance or law requires relo- , not pay for: cation to another premises, the most we will pay for the Increased Cost of (a) The enforcement of any ordinance or Construction, subject to the provi- law which requires demolition, repair, sions of e.(6) of this Additional Cov- replacement, reconstruction, remod- erage, is the increased cost of con- eling or remediation of property due struction at the new premises. to contamination by "pollutants" or due to the presence growth profif- (g) This Additional Coverage is not subject , , ?eration,'? spread or any activity of to the terms of the Ordinance or Law Exclusion to the extent that such Exclu- fungus , wet or dry rot or bacteria; or , sion would conflict with the provisions of (b) Any costs associated with the en- his Additional Coverage. forcement of an ordinance or law which requires any insured or others (9) The costs addressed in the Loss Pay- to test for, monitor, clean up, re- ment and Valuation Conditions, and the Replacement Cost Optional Coverage move, contain, treat, detoxify or neu- tralize or in any way respond to or , in this Coverage Form, do not include , , assess the effects of "pollutants", the increased cost attribu56 e en- forcem "fungus", wet or dry rot or bacteria. en o an o in a or law. The amount pays a un er is dibonal (6) The most we will pay under this Addi- Coverage, as stated in e.(6) of this Addi- tional Coverage, for each described tional Coverage, is not subject to such building insured under this Coverage limitation. Form, is $10,000 or 5% of the Limit of f. Electronic Data Insurance applicable to that building, whichever is less. If a damaged building (1) Under this Additional Coverage, elee- is covered under a blanket Limit of In- tronic data has the meaning described surance which applies to more than one under Property Not Covered - Electronic building or item of property, then the Data. most we will pay under this Additional (2) Subject to the provisions of this Addi- Coverage, for that damaged building, is tonal Coverage, we will pay for the cost the lesser of: $10,000 or 5% times the to replace or restore electronic data value of the damaged building as of the which has been destroyed or corrupted time of loss times the applicable coin- by a Covered Cause of Loss. To the surance percentage. extent that electronic data is not re- The amount payable under this Addi- placed or restored, the loss will be val- tional Coverage is additional insurance. ued at the cost of replacement of the (7) With respect to this Additional Coverage: media on which the electronic data was stored, with blank media of substantially (a) We will not pay for the Increased identical type. Cost of Construction: (3) The Covered Causes of Loss applicable (i) Until the property is actually re- to Your Business Personal Property ap- paired or replaced, at the same or ply to this Additional Coverage - Elec- another premises; and tronic Data, subject to the following: CP 00 10 04 02 © ISO Properties, Inc., 2001 Page 6 of 14 ? (a) If the Causes Of Loss - Special Form applies, coverage under this Additional Coverage - Electronic Data is limited to the "specified causes of loss" as defined in that form, and Collapse as set forth in that form. (b) If the Causes Of Loss - Broad Form applies, coverage under this Addi- tional Coverage - Electronic Data in- cludes Collapse as set forth in that form. (c) If the Causes Of Loss Form is en- dorsed to add a Covered Cause of Loss, the additional Covered Cause of Loss does not apply to the cover- age provided under this Additional Coverage - Electronic Data. (d) The Covered Causes of Loss include a virus, harmful code or similar in- struction introduced into or enacted on a computer system (including electronic data) or a network to which it is connected, designed to damage or destroy any part of the system or disrupt its normal operation. But there is no coverage for loss or dam- age caused by or resulting from ma- nipulation of a computer system (in- cluding electronic data) by any em- ployee, including a temporary or leased employee, or by an entity re- tained by you or for you to inspect, design, install, modify, maintain, re- pair or replace that system. (4) The most we will pay under this Addi- tional Coverage - Electronic Data is $2,500 for all loss or damage sustained in any one policy year, regardless of the number of occurrences of loss or dam- age or the number of premises, loca- tions or computer systems involved. If loss payment on the first occurrence does not exhaust this amount, then the balance is available for subsequent loss or damage sustained in but not after that policy year. With respect to an occur- rence which begins in one policy year and continues or results in additional loss or damage in a subsequent policy year(s), all loss or damage is deemed to be sustained in the policy year in which the occurrence began. 5. Coverage Extensions Except as otherwise provided, the following Extensions apply to property located in or on the building described in the Declarations or in the open (or in a vehicle) within 100 feet of the described premises. If a Coinsurance percentage of 80% or more or, a Value Reporting period symbol, is shown in the Declarations, you may extend the insur- ance provided by this Coverage Part as follows: a. Newly Acquired Or Constructed Property (1) Buildings If this policy covers Building, you may extend that insurance to apply to: (a) Your new buildings while being built on the described premises; and (b) Buildings you acquire at locations, other than the described premises, intended for: (1) Similar use as the building de- scribed in the Declarations; or (ii) Use as a warehouse. The most we will pay for loss or damage under this Extension is $250,000 at each building. (2) Your Business Personal Property (a) If this policy covers Your Business Personal Property, you may extend that insurance to apply to: (i) Business personal property, in- cluding such property that you newly acquire, at any location you acquire other than at fairs, trade shows or exhibitions; (ii) Business personal property, in- cluding such property that you newly acquire, located at your newly constructed or acquired buildings at the location described in the Declarations; or (iii) Business personal property that you newly acquire, located at the described premises. The most we will pay for loss or damage under this Extension is $100,000 at each building. (b) This Extension does not apply to: (i) Personal property of others that is temporarily in your possession in the course of installing or per- forming work on such property; or Page 6 of 14 0 ISO Properties, Inc., 2001 CP 00 10 04 02 ? 11 1 (ii) Personal property of others that is , 1 1 , 1 c. Valuable Papers And Records (Other temporarily in your possession in Than Electronic Data) the course of your manufacturing or wholesaling activities. (1) You may extend the insurance that applies to Your Business Personal (3) Period Of Coverage Property to apply to the cost to replace With respect to insurance on or at each or restore the lost information on valu- newly acquired or constructed property, able papers and records for which dupli- coverage will end when any of the fol- cates do not exist. But this Extension lowing first occurs: does not apply to valuable papers and (a) This policy expires; records which exist as electronic data. Electronic data has the meaning de- (b) 30 days expire after you acquire the scribed under Property Not Covered - property or begin construction of that Electronic Data. part of the building that would qualify (2) If the Causes Of Loss - Special Form as covered property; or applies, coverage under this Extension (c) You report values to us. is limited to the "specified causes of We will charge you additional premium loss" as defined in that form, and Col- for values reported from the date you lapse as set forth in that form. acquire the property or begin construc- (3) If the Causes Of Loss - Broad Form tion of that part of the building that would applies, coverage under this Extension qualify as covered property. includes Collapse as set forth in that b. Personal Effects And Property Of Others form. You may extend the insurance that applies (4) Under this Extension, the most we will to Your Business Personal Property to apply pay to replace or restore the lost infor- to: mation is $2,500 at each described (1) Personal effects owned by you, your premises, unless a higher limit is shown in the Declarations. Such amount is ad- officers, your partners or members, your ditional insurance. We will also pay for managers or your employees. This ex- the cost of blank material for reproduc- tension does not apply to loss or dam- ing the records (whether or not dupli- age by theft. cates exist), and (when there is a dupli- (2) Personal property of others in your care, cate) for the cost of labor to transcribe or custody or control. copy the records. The costs of blank The most we will pay for loss or damage material and labor are subject to the ap- under this Extension is $2,500 at each de- plicable Limit of Insurance on Your scribed premises. Our payment for loss of Business Personal Property and there- or damage to personal property of others fore coverage of such costs is not addi- will only be for the account of the owner of tional insurance. the property. d. Property Off-Premises (1), You may extend the insurance provided by this Coverage Form to apply to your Covered Property while it is away from the described premises, if it is: (a) Temporarily at a location you do not own, lease or operate; (b) In storage at a location you lease, provided the lease was executed af- ter the beginning of the current policy term; or (c) At any fair, trade show or exhibition. (2) This Extension does not apply to prop- erty: (a) In or on a vehicle; or CP 00 10 04 02 © ISO Properties, Inc., 2001 Page 7 of 14 ? (b) In the care, custody or control of your salespersons, unless the property is in such care, custody or control at a fair, trade show or exhibition. (3) The most we will pay for loss or damage under this Extension is $10,000. e. Outdoor Property You may extend the insurance provided by this Coverage Form to apply to your outdoor fences, radio and television antennas (in- cluding satellite dishes), signs (other than signs attached to buildings), trees, shrubs and plants (other than "stock" of trees, shrubs or plants), including debris removal expense, caused by or resulting from any of the following causes of loss if they are Cov- ered Causes of Loss: (1) Fire; (2) Lightning; (3) Explosion; (4) Riot or Civil Commotion; or (5) Aircraft. The most we will pay for loss or damage under this Extension. is $1,000, but not more than $250 for any one tree, shrub or plant. These limits apply to any one occur- rence, regardless of the types or number of items lost or damaged in that occurrence. f. Non-Owned Detached Trailers (1) You may extend the insurance that applies to Your Business Personal Property to apply to loss or damage to trailers that you do not own, provided that: (a) The trailer is used in your business; (b) The trailer is in your care, custody or control at the premises described in the Declarations; and (c) You have a contractual responsibility to pay for loss or damage to the trailer. (2) We will not pay for any loss or damage that occurs: (a) While the trailer is attached to any motor vehicle or motorized convey- ance, whether or not the motor vehi- cle or motorized conveyance is in motion; (b) During hitching or unhitching opera- tions, or when a trailer becomes ac- cidentally unhitched from a motor vehicle or motorized conveyance. (3) The most we will pay for loss or damage under this Extension is $5,000, unless a higher limit is shown in the Declarations. (4) This insurance is excess over the amount due (whether you can collect on it or not) from any other insurance cov- ering such property. Each of these Extensions is additional insurance unless otherwise indicated. The Additional Condi- tion, Coinsurance, does not apply to these Exten- sions. B. Exclusions And Limitations See applicable Causes of Loss Form as shown in the Declarations. C. Limits Of Insurance The most we will pay for loss or damage in any one occurrence is the applicable Limit of Insurance shown in the Declarations. The most we will pay for loss or damage to out- door signs attached to buildings is $1,000 per sign in any one occurrence. The limits applicable to the Fire Department Serv- ice Charge and Pollutant Clean Up and Removal Additional Coverages are in addition to the Limits of Insurance. Payments under the Preservation of Property Ad- ditional Coverage will not increase the applicable Limit of Insurance. D. Deductible In any one occurrence of loss or damage (herein- after referred to as loss), we will first reduce the amount of loss if required by the Coinsurance Condition or the Agreed Value Optional Coverage. If the adjusted amount of loss is less than or equal to the Deductible, we will not pay for that loss. If the adjusted amount of loss exceeds the Deducti- ble, we will then subtract the Deductible from the adjusted amount of loss, and will pay the resulting amount or the Limit of Insurance, whichever is less. When the occurrence involves loss to more than one item of Covered Property and separate Limits of Insurance apply, the losses will not be combined in determining application of the Deductible. But the Deductible will be applied only once per occur- rence. Page 8 of 14 0 ISO Properties, Inc., 2001 CP 00 10 04 02 ? Example No. 1: (This example assumes there is no coinsurance pen- alty.) Deductible: $ 250 Limit of Insurance - Bldg. 1: $ 60,000 Limit of Insurance - Bldg. 2: $ 80,000 Loss to Bldg. 1: $ 60,100 Loss to Bldg. 2: $ 90,000 The amount of loss to Bldg. 1 ($60,100) is less than the sum ($60,250) of the Limit of Insurance applicable to Bldg. 1 plus the Deductible. The Deductible will be subtracted from the amount of loss in calculating the loss payable for Bldg. 1: $ 60,100 250 $ 59,850 Loss Payable - Bldg. 1 The Deductible applies once per occurrence and therefore is not subtracted in determining the amount of loss payable for Bldg. 2. Loss payable for Bldg. 2 is the Limit of Insurance of $80,000. Total amount of loss payable: $59,850 + 80,000 = $139,850 Example No. 2: (This example, too, assumes there is no coinsurance penalty.) The Deductible and Limits of Insurance are the same as those in Example No. 1. Loss to Bldg. 1: $ 70,000 (exceeds Limit of Insurance plus Deductible) Loss to Bldg. 2: $ 90,000 (exceeds Limit of Insurance plus Deductible) Loss Payable - Bldg. 1: $60,000 (Limit of Insurance) Loss Payable - Bldg. 2: $80,000 (Limit of Insurance) Total amount of loss payable: $140,000 E. Loss Conditions The following conditions apply in addition to the Common Policy Conditions and the Commercial Property Conditions. 1. Abandonment There can be no abandonment of any property to us. 2. Appraisal If we and you disagree on the value of the property or the amount of loss, either may make written demand for an appraisal of the loss. In this event, each party will select a com- petent and impartial appraiser. The two ap- praisers will select an umpire. If they cannot agree, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the value of the property and amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally. If there is an appraisal, we will still retain our right to deny the claim. 3. Duties In The Event Of Loss Or Damage a. You must see that the following are done in the event of loss or damage to Covered Property: (1) Notify the police if a law may have been broken. (2) Give us prompt notice of the loss or damage. Include a description of the property involved. (3) As soon as possible, give us a descrip- tion of how, when and where the loss or damage occurred. (4) Take all reasonable steps to protect the Covered Property from further damage, and keep a record of your expenses necessary to protect the Covered Prop- erty, for consideration in the settlement of the claim. This will not increase the Limit of Insurance. However, we will not pay for any subsequent loss or damage resulting from a cause of loss that is not a Covered Cause of Loss. Also, if feasi- ble, set the damaged property aside and in the best possible order for examina- tion. (5) At our request, give us complete inven- tories of the damaged and undamaged property. Include quantities, costs, val- ues and amount of loss claimed. (6) As often as may be reasonably required, permit us to inspect the property proving the loss or damage and examine your books and records. CP 00 10 04 02 0 ISO Properties, Inc., 2001 Page 9 of 14 ? Also permit us to take samples of dam- aged and undamaged property for in- spection, testing and analysis, and per- mit us to make copies from your books and records. (7) Send us a signed, sworn proof of loss containing the information we request to investigate the claim. You must do this within 60 days after our request. We will supply you with the necessary forms. (8) Cooperate with us in the investigation or settlement of the claim. b. We may examine any insured under oath, while not in the presence of any other in- sured and at such times as may be rea- sonably required, about any matter relating to this insurance or the claim, including an insured's books and records. In the event of an examination, an insured's answers must be signed. 4. Loss Payment a. In the event of loss or damage covered by this Coverage Form, at our option, we will either: (1) Pay the value of lost or damaged prop- erty; (2) Pay the cost of repairing or replacing the lost or damaged property, subject to b. below; (3) Take all or any part of the property at an agreed or appraised value; or (4) Repair, rebuild or replace the property with other property of like kind and qual- ity, subject to b. below. We will determine the value of lost or dam- aged property, or the cost of its repair or re- placement, in accordance with the applica- ble terms of the Valuation Condition in this Coverage Form or any applicable provision which amends or supersedes the Valuation Condition. b. The cost to repair, rebuild or replace does not include the increased cost attributable to enforcement of any ordinance or law regu- lating the construction, use or repair of any property. c. We will give notice of our intentions within 30 days after we receive the sworn proof of loss. d. We will not pay you more than your financial interest in the Covered Property. e. We may adjust losses with the owners of lost or damaged property if other than you. If we pay the owners, such payments will satisfy your claims against us for the own- ers' property. We will not pay the owners more than their financial interest in the Cov- ered Property. f. We may elect to defend you against suits arising from claims of owners of property. We will do this at our expense. g. We will pay for covered loss or damage within 30 days after we receive the sworn proof of loss, if you have complied with all of the terms of this Coverage Part and: (1) We have reached agreement with you on the amount of loss; or (2) An appraisal award has been made. 5. Recovered Property If either you or we recover any property after loss settlement, that party must give the other prompt notice. At your option, the property will be returned to you. You must then return to us the amount we paid to you for the property. We will pay recovery expenses and the expenses to repair the recovered property, subject to the Limit of Insurance. 6. Vacancy a. Description Of Terms (1) As used in this Vacancy Condition, the term building and the term vacant have the meanings set forth in (1)(a) and (1)(b) below: (a) When this policy is issued to a ten- ant, and with respect to that tenant's interest in Covered Property, building means the unit or suite rented or leased to the tenant. Such building is vacant when it does not contain enough business personal property to conduct customary operations. (b) When this policy is issued to the owner or general lessee of a build- ing, building means the entire build- ing. Such building is vacant unless at least 31% of its total square footage is: (i) Rented to a lessee or sub-lessee and used by the lessee or sub- lessee to conduct its customary operations; and/or (ii) Used by the building owner to conduct customary operations. Page 10 of 14 0 ISO Properties, Inc., 2001 CP 00 10 04 02 ? (2) Buildings under construction or renova- tion are not considered vacant. b. Vacancy Provisions If the building where loss or damage occurs has been vacant for more than 60 consecu- tive days before that loss or damage oc- curs: (1) We will not pay for any loss or damage caused by any of the following even if they are Covered Causes of Loss: (a) Vandalism; (b) Sprinkler leakage, unless you have protected the system against freez- ing; (c) Building glass breakage; (d) Water damage; (e) Theft; or (f) Attempted theft. (2) With respect to Covered Causes of Loss other than those listed in b.(1)(a) through b.(1)(f) above, we will reduce the amount we would otherwise pay for e ss or damage by 15%. 7 Valuation We will termine the value of Covered Prop- e event of loss or damage as follows: a. At actual cash value as of the time of loss or damage, except as provided in b., c., d. and e. below. b. If the Limit of Insurance for Building satis- fies the Additional Condition, Coinsurance, and the cost to repair or replace the dam- aged building property is $2,500 or less, we will pay the cost of building repairs or re- placement. The cost of building repairs or replacement does not include the increased cost attribut- able to enforcement of any ordinance or law regulating the construction, use or repair of any property. However, the following prop- erty will be valued at the actual cash value even when attached to the building: (1) Awnings or floor coverings; (2) Appliances for refrigerating, ventilating, cooking, dishwashing or laundering; or (3) Outdoor equipment or furniture. c. "Stock" you have sold but not delivered at the selling price less discounts and ex- penses you otherwise would have had. d. Glass at the cost of replacement with safety glazing material if required by law. e. Tenant's Improvements and Betterments at: (1) Actual cash value of the lost or damaged property if you make repairs promptly. (2) A proportion of your original cost if you do not make repairs promptly. We will determine the proportionate value as follows: (a) Multiply the original cost by the num- ber of days from the loss or damage to the expiration of the lease; and (b) Divide the amount determined in (a) above by the number of days from the installation of improvements to the expiration of the lease. If your lease contains a renewal option, the expiration of the renewal option pe- riod will replace the expiration of the lease in this procedure. (3) Nothing if others pay for repairs or re- placement. F. Additional Conditions The following conditions apply in addition to the Common Policy Conditions and the Commercial Property Conditions. 1. Coinsurance If a Coinsurance percentage is shown in the Declarations, the following condition applies. a. We will not pay the full amount of any loss if the value of Covered Property at the time of loss times the Coinsurance percentage shown for it in the Declarations is greater than the Limit of Insurance for the property. Instead, we will determine the most we will pay using the following steps: (1) Multiply the value of Covered Property at the time of loss by the Coinsurance per- centage; (2) Divide the Limit of Insurance of the property by the figure determined in Step (1); CP 00 10 04 02 © ISO Properties, Inc., 2001 Page 11 of 14 ? (3) Multiply the total amount of loss, before the application of any deductible, by the figure determined in Step (2); and (4) Subtract the deductible from the figure . determined in Step (3). We will pay the amount determined in Step (4) or the limit of insurance, whichever is less. For the remainder, you will either have to rely on other insurance or absorb the loss yourself. Example No. 1 (Underinsurance): When: The value of the prop- erty is $ 250,000 The Coinsurance per- centage for it is 80% The Limit of Insurance for it is $ 100,000 The Deductible is $ 250 The amount of loss is $ 40,000 Step (1): $250,000 x 80% = $200,000 (the minimum amount of insurance to meet your Coinsurance requirements) Step (2): $100,000 + $200,000 = .50 Step (3): $40,000 x.50 = $20,000 Step (4): $20,000 - $250 = $19,750 We will pay no more than $19,750. The remaining $20,250 is not covered. Example No. 2 (Adequate Insurance): When: The value of the prop- erty is $ 250,000 The Coinsurance per- centage for it is 80% The Limit of Insurance for it is $ 200,000 The Deductible is $ 250 The amount of loss is $ 40,000 The minimum amount of insurance to meet your Coinsurance requirement is $200,000 ($250,000 x 80%). Therefore, the Limit of Insurance in this Example is adequate and no penalty applies. We will pay no more than $39,750 ($40,000 amount of loss mi- nus the deductible of $250). b. If one Limit of Insurance applies to two or more separate items, this condition will ap- ply to the total of all property to which the limit applies. Example No. 3: When: The value of property is: Bldg. at Location No. 1 $ 75,000 Bldg. at Location No. 2 $ 100,000 Personal Property at Location No. 2 $ 75,000 $ 250,000 The Coinsurance per- centage for it is 90% The Limit of Insurance for Buildings and Per- sonal Property at Loca- tion Nos. 1 and 2 is $ 180,000 The Deductible is $ 1,000 The amount of loss is: Bldg. at Location No. 2 $ 30,000 Personal Property at Location No. 2. $ 20,000 $ 50,000 Step (1): $250,000 x 90% = $225,000 (the minimum amount of insurance to meet your Coinsurance requirements and to avoid the penalty shown below) Step (2): $180,000 -+.$225,000 =.80 Step (3): $50,000 x.80 = $40,000 Step (4): $40,000 - $1,000 = $39,000 We will pay no more than $39,000. The remaining $11,000 is not covered. 2. Mortgageholders a. The term mortgageholder includes trustee. b. We will pay for covered loss of or damage to buildings or structures to each mortgage- holder shown in the Declarations in their or- der of precedence, as interests may appear. c. The mortgageholder has the right to receive loss payment even if the mortgageholder has started foreclosure or similar action on the building or structure. d. If we deny your claim because of your acts or because you have failed to comply with the terms of this Coverage Part, the mort- gageholder will still have the right to receive loss payment if the mortgageholder: (1) Pays any premium due under this Cov- erage Part at our request if you have failed to do so; (2) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of your failure to do so; and Page 12 of 14 © ISO Properties, Inc., 2001 CP 00 10 04 02 ? (3) Has notified us of any change in owner- c. The terms of this Optional Coverage apply ship, occupancy or substantial change in only to loss or damage that occurs: risk known to the mortgageholder. (1) On or after the effective date of this All of the terms of this Coverage Part will Optional Coverage; and then apply directly to the mortgageholder. (2) Before the Agreed Value expiration date e. If we pay the mortgageholder for any loss or shown in the Declarations or the policy damage and deny payment to you because expiration date, whichever occurs first of your acts or because you have failed to . 2 Inflation Guard comply with the terms of this Coverage . Part: a. The Limit of Insurance for property to which (1) The mortggageholder's rights under the this Optional Coverage applied will auto- mortgage will be transferred to us to the matically increase by the annual percentage extent of the amount we pay; and shown in the Declarations. (2) The mortgageholder's right to recover b. The amount of increase will be: the full amount of the mortgageholder's (1) The Limit of Insurance that applied on claim will not be impaired. the most recent of the policy inception At our option, we may pay to the mortgage- date, the policy anniversary date, or any holder the whole principal on the mortgage other policy change amending the Limit plus any accrued interest. In this event, your of Insurance, times mortgage and note will be transferred to us (2) The percentage of annual increase and you will pay your remaining mortgage shown in the Declarations, expressed as debt to us. a decimal (example: 8% is.08), times f. If we cancel this policy, we will give written (3) The number of days since the beginning notice to the mortgageholder at least: of the current policy year or the effective (1) 10 days before the effective date of date of the most recent policy change cancellation if we cancel for your non- amending the Limit of Insurance, divided payment of premium; or by 365. (2) 30 days before the effective date of Example: cancellation if we cancel for any other If: The applicable Limit of reason. Insurance is $ 100,000 g. If we elect not to renew this policy, we will The annual percentage give written notice to the mortgageholder at increase is 8% least 10 days before the expiration date of The number of days this policy. since the beginning of G. Optional Coverages the policy year (or last policy change) is 146 If shown as applicable in the Declarations, the fol- The amount of increase lowing Optional Coverages apply separately to is $100 000 x.08 x 146 each item. , r 365 = $ 3,200 1. Agreed Value a. The Additional Condition, Coinsurance, 03.R lacement Coat does not apply to Covered Property to which this Optional Coverage applies. We will pay a. Replacement Cost (without deduction for no more for loss of or damage to that prop- depreciation) replaces Actual Cash Value in erty than the proportion that the Limit of In- the Loss Condition, Valuation, of this Cov- surance under this Coverage Part for the erage Form. property bears to the Agreed Value shown b. This Optional Coverage does not apply to: for it in the Declarations. (1) Personal property of others; b. If the expiration date for this Optional Cov- (2) Contents of a residence; erage shown in the Declarations is not ex- tended, the Additional Condition, Coinsur- ance, is reinstated and this Optional Cover- age expires. CP 00 10 04 02 C ISO Properties, Inc., 2001 Page 13 of 14 ? (3) Works of art, antiques or rare articles, including etchings, pictures, statuary, marbles, bronzes, porcelains and bric-a- brac; or (4) "Stock", unless the Including "Stock" option is shown in the Declarations. Under the terms of this Replacement Cost Optional Coverage, tenants' improvements and betterments are not considered to be the personal property of others. c. You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of on a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim for the additional coverage this Optional Cov- erage provides if you notify us of your intent to do so within 180 days after the loss or damage. d. We will not pay on a replacement cost basis for any loss or damage: (1) Until the lost or damaged property is actually repaired or replaced; and (2) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage. With respect to tenants' improvements and betterments, the following also apply: (3) If the conditions in d.(1) and d.(2) above are not met, the value of tenants' im- provements and betterments will be de- termined as a proportion of your original cost, as set forth in the Valuation Condi- tion of this Coverage Form; and (4) We will not pay for loss or damage to tenants' improvements and betterments if others pay for repairs or replacement. e. We will not pay more for loss or damage on a replacement cost basis than the least of (1), (2) or (3), subject to f. below: (1) The Limit of Insurance applicable to the lost or damaged property; (2) The cost to replace the lost or damaged property with other property: (a) Of comparable material and quality; and (b) Used for the same purpose; or (3) The amount actually spent that is nec- essary to repair or replace the lost or damaged property. If a building is rebuilt at a new premises, the cost described in e.(2) above is limited to the cost which would have been incurred if the building had been rebuilt at the original premises. f. The cost of repair or replacement does not include the increased cost attributable to enforcement of any ordinance or law regu- lating the construction, use or repair of any property. 4. Extension Of Replacement Cost To Personal Property Of Others a. If the Replacement Cost Optional Coverage is shown as applicable in the Declarations, then this Extension may also be shown as applicable. If the Declarations show this Extension as applicable, then Paragraph 3.b.(1) of the Replacement Cost Optional Coverage is deleted and all other provisions of the Replacement Cost Optional Cover- age apply to replacement cost on personal property of others. b. With respect to replacement cost on the personal property of others, the following limitation applies: If an item(s) of personal property of others is subject to a written contract which gov- erns your liability for loss or damage to that item(s), then valuation of that item(s) will be based on the amount for which you are li- able under such contract, but not to exceed the lesser of the replacement cost of the property or the applicable Limit of Insur- ance. H. Definitions 1. "Fungus" means any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents or by-products produced or re- leased by fungi. 2. "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. 3. "Stock" means merchandise held in storage or for sale, raw materials and in-process or fin- ished goods, including supplies used in their packing or shipping. Page 14 of 14 0 ISO Properties, Inc., 2001 CP 00 10 04 02 ? COMMERCIAL GENERAL LIABILITY CG 24 0212 04 THIS ENDORSEMENT. CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BINDING ARBITRATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART ELECTRONIC DATA LIABILITY COVERAGE PART LIQUOR LIABILITY COVERAGE PART OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART PRODUCT WITHDRAWAL COVERAGE PART RAILROAD PROTECTIVE LIABILITY COVERAGE PART UNDERGROUND STORAGE TANK POLICY If we and the insured do not agree whether coverage is provided under this Coverage Part for a claim made against the insured, then either party may make a written demand for arbitration. When this demand is made, each party will select an arbitrator. The two arbitrators will select a third. If they cannot agree within 30 days, either may request that selection be made by a judge of a court having juris- diction. Each party will: 1. Pay the expenses it incurs; and 2. Bear the expenses of the third arbitrator equally. Unless both parties agree otherwise, arbitration will take place in the county or parish in which the ad- dress shown in the Declarations is located. Local rules of law as to procedure and evidence will apply. A decision agreed to by two of the arbitrators will be binding. CG 24 02 12 04 © ISO Properties, Inc., 2003 Page 1 of 1 ? COMMERCIAL GENERAL LIABILITY CG 21 70 11 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CAP ON LOSSES FROM CERTIFIED ACTS OF TERRORISM This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART LIQUOR LIABILITY COVERAGE PART OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART RAILROAD PROTECTIVE LIABILITY COVERAGE PART UNDERGROUND STORAGE TANK POLICY With respect to any one or more "certified acts of terrorism", we will not pay any amounts for which we are not responsible under the terms of the federal Terrorism Risk Insurance Act of 2002 (including sub- sequent acts of Congress pursuant to the Act) due to the application of any clause which results in a cap on our liability for payments for terrorism losses. "Certified act of terrorism" means an act that is certi- fied by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism pursuant to the federal Terrorism Risk Insurance Act of 2002. The federal Terrorism Risk Insurance Act of 2002 sets forth the following criteria for a "certified act of terror- ism": 1. The act resulted in aggregate losses in excess of $5 million; and 2. The act is a violent act or an act that is dangerous to human life, property or infrastructure and is committed by an individual or individuals acting on behalf of any foreign person or foreign interest, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. CG 21 70 11 02 C ISO Properties, Inc., 2002 Page 1 of 1 ? b. Includes: (1) Warranties or representations made at any time with respect to. the fitness, quality, du- rability, performance or use of "your prod- uct", and (2) The providing of or failure to provide warn- ings or instructions. c. Does not include vending machines or other property rented to or located for the use of oth- ers but not sold. Page 6 of 6 0 ISO Properties, Inc., 2003 CG 00 33 12 04 ? b. Those statements are based upon representa- tions you made to us; and c. We have issued this policy in reliance upon your representations. 7. Separation Of Insureds Except with respect to the Limits of Insurance, and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this in- surance applies: a. As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom claim is made or "suit" is brought. 8. Transfer Of Rights Of Recovery Against Others To Us If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are transferred to us. The in- sured must do nothing after loss to impair them. At our request, the insured will bring "suit" or transfer those rights to us and help us enforce them. 9. When We Do Not Renew If we decide not to renew this Coverage Part, we will mail or deliver to the first Named Insured shown in the Declarations written notice of the nonrenewal not less than 30 days before the expi- ration date. If notice is mailed, proof of mailing will be sufficient proof of notice. SECTION V - DEFINITIONS 1. "Bodily injury" means bodily injury, sickness or disease sustained by a person, including death resulting from any of these at any time. 2. "Coverage territory" means: a. The United States of America (including its territories and possessions), Puerto Rico and Canada; b. International waters or airspace, but only if the "injury" occurs in the course of travel or trans- portation between any places included in a. above; or c. All other parts of the world if the "injury" arises out of: (1) Goods or products made or sold by you in the territory described in a. above; or (2) The activities of a person whose home is in the territory described in a. above, but is away for a short time on your business provided the insured's responsibility to pay damages is determined in a "suit" on the mer- its, in the territory described in a. above or in a settlement we agree to. 3. "Employee" includes a "leased worker". "Em- ployee" does not include a "temporary worker". 4. "Executive Officer" means a person holding any of the officer positions created by your charter, con- stitution, by-laws or any other similar governing document. 5. "Injury" means all damages, including damages because of "bodily injury" and "property damage", and including damages for care, loss of services or loss of support. 6. "Leased worker" means a person leased to you by a labor leasing firm under an agreement between you and the labor leasing firm, to perform duties related to the conduct of your business. "Leased worker" does not include a "temporary worker". 7. "Property damage" means: a. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or b. Loss of use of tangible property that is not physically injured. All such loss of use shall be deemed to occur at the time of the occurrence that caused it. 8. "Suit" means a civil proceeding in which damages because of "injury" to which this insurance applies are alleged. "Suit" includes: a. An arbitration proceeding in which such dam- ages are claimed and to which the insured must submit or does submit with our consent; or b. Any other alternative dispute resolution pro- ceeding in which such damages are claimed and to which the insured submits with our con- sent. 9. "Temporary worker" means a person who is fur- nished to you to substitute for a permanent "em- ployee" on leave or to meet seasonal or short-term workload conditions. 10. "Your product": a. Means: (1) Any goods or products, other than real property, manufactured, sold, handled, dis- tributed or disposed of by: (a) You; (b) Others trading under your name; or (c) A person or organization whose busi- ness or assets you have acquired; and (2) Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. CG 00 33 12 04 © ISO Properties, Inc, 2003 Page 5 of 6 ? b. If a claim is made or "suit" is brought against any insured, you must: (1) Immediately record the specifics of the claim or "suit" and the date received; and (2) Notify us as soon as practicable. You must see to it that we receive written no- tice of the claim or "suit" as soon as practica- ble. c. You and any other involved insured must: (1) Immediately send us copies of any de- mands, notices, summonses or legal pa- pers received in connection with the claim or "suit"; (2) Authorize us to obtain records and other information; (3) Cooperate with us in the investigation or settlement of the claim or defense against the "suit"; and (4) Assist us, upon our request, in the en- forcement of any right against any person or organization which may be liable to the insured because of "injury" to which this in- surance may also apply. d. No insured will, except at that insured's own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent. 3. Legal Action Against Us No person or organization has a right under this Coverage Part: a. To join us as a party or otherwise bring us into a "suit" asking for damages from an insured; or b. To sue us on this Coverage Part unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured; but we will not be Hable for damages that are not payable under the terms of this Coverage Part or that are in excess of the ap- plicable limit of insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claim- ant's legal representative. 4. Other Insurance If other valid and collectible insurance is available to the insured for a loss we cover under this Cov- erage Part, our obligations are limited as follows: a. Primary Insurance This insurance is primary. Our obligations are not affected unless any of the other insurance is also primary. Then, we will share with all that other insurance by the method described in b. below. b. Method Of Sharing If all of the other insurance permits contribution by equal shares, we will follow this method also. Under this approach each insurer con- tributes equal amounts until it has paid its ap- plicable limit of insurance or none of the loss remains, whichever comes first. If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers. 5. Premium Audit a. We will compute all premiums for this Cover- age Part in accordance with our rules and rates. b. Premium shown in this Coverage Part as ad- vance premium is a deposit premium only. At the close of each audit period we will compute the earned premium for that period and send notice to the first Named Insured. The due date for audit and retrospective premiums is the date shown as the due date on the bill. If the sum of the advance and audit premiums paid for the policy period is greater than the earned premium, we will return the excess to the first Named Insured. c. The first Named Insured must keep records of the information we need for premium computa- tion, and send us copies at such times as we may request. Representations By accepting this policy, you agree: a. The statements in the Declarations are accu- rate and complete; Page 4 of 6 © ISO Properties, Inc, 2003 CO 00 33 12 04 ? 2. Each of the following is also an insured: a. Your "employees", other than either your "ex- ecutive officers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these "em- ployees" is an insured for: (1) "Injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited li- ability company), or to a co-"employee" while that co= employee" is either in the course of his or her employment or per- forming duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co-"employee" as a conse- quence of Paragraph (1)(a) above; or (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in Paragraphs (1)(a) or (b) above. (2) "Property damage" to property: (a) Owned or occupied by, or (b) Rented or loaned to that "employee", any of your other "em- ployees", by any of your partners or mem- bers (if you are a partnership or joint ven- ture), or by any of your members (if you are a limited liability company). b. Any person or organization having proper temporary custody of your property if you die, but only: (1) With respect to liability arising out of the maintenance or use of that property; and (2) Until your legal representative has been appointed. c. Your legal representative if you die, but only with respect to duties as such. That represen- tative will have all your rights and duties under this Coverage Part. 3. Any organization you newly acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain ownership or majority interest, will qualify as a Named In- sured if there is no other similar insurance avail- able to that organization. However: a. Coverage under this provision is afforded only until the 90th day after you acquire or form the organization or the end of the policy period, whichever is earlier; and b. Coverage does not apply to "injury" that oc- curred before you acquired or formed the or- ganization. No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations. SECTION 111- LIMITS OF INSURANCE 1. The Limits of Insurance shown in the Declarations and the rules below fix the most we will pay re- gardless of the number of: a. Insureds; b. Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suits". 2. The Aggregate Limit is the most we will pay for all "injury" as the result of the selling, serving or fur- nishing of alcoholic beverages. 3. Subject to the Aggregate Limit, the Each Common Cause Limit is the most we will pay for all "injury" sustained by one or more persons or organiza- tions as the result of the selling, serving or furnish- ing of any alcoholic beverage to any one person. The Limits of Insurance of this Coverage Part apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance. SECTION IV - LIQUOR LIABILITY CONDITIONS 1. Bankruptcy Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obliga- tions under this Coverage Part. 2. Duties In The Event Of Injury, Claim Or Suit a. You must see to it that we are notified as soon as practicable of an "injury" which may result in a claim. To the extent possible, notice should include: (1) How, when and where the "injury" took place; (2) The names and addresses of any injured persons and witnesses; and (3) The nature and location of any "injury". CG 00 33 12 04 0 ISO Properties, Inc., 2003 Page 3 of 6 ? c. Employer's Liability "Bodily injury" to: (1) An "employee" of the insured arising out of and in the course of: (a) Employment by the insured; or (b) Performing duties related to the conduct of the insured's business; or (2) The spouse, child, parent, brother or sister of that "employee" as a consequence of Paragraph (1) above. This exclusion applies: (1) Whether the insured may be liable as an employer or in any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay dam- ages because of the "injury". d. Liquor License Not In Effect "Injury" arising out of any alcoholic beverage sold, served or furnished while any required li- cense is not in effect. e. Your Product "Injury" arising out of "your product". This ex- clusion does not apply to "injury" for which the insured or the insured's indemnitees may be held liable by reason of: (1) Causing or contributing to the intoxication of any person; (2) The furnishing of alcoholic beverages to a person under the legal drinking age or un- der the influence of alcohol; or (3) Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alco- holic beverages. f. Other Insurance Any "injury" with respect to which other insur- ance is afforded, or would be afforded but for the exhaustion of the limits of insurance. This exclusion does not apply if the other in- surance responds to liability for "injury" im- posed on the insured by reason of the selling, serving or furnishing of any alcoholic beverage. g. War "Injury", however caused, arising, directly or indirectly, out of: (1) War, including undeclared or civil war; (2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any govern- ment, sovereign or other authority using military personnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental au- thority in hindering or defending against any of these. SUPPLEMENTARY PAYMENTS We will pay, with respect to any claim we investigate or settle, or any "suit" against an insured we defend: 1. All expenses we incur. 2. The cost of bonds to release attachments, but only for bond amounts within the applicable limit of in- surance. We do not have to furnish these bonds. 3. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual loss of earnings up to $250 a day because of time off from work. 4. All costs taxed against the insured in the "suit". 6. Prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the applicable limit of insurance, we will not pay any prejudgment interest based on that period of time after the offer. 6. All interest on the full amount of any judgment that accrues after entry of the judgment and before we have paid, offered to pay, or deposited in court the part of the judgment that is within the applicable limit of insurance. 7. Expenses incurred by the insured for first aid administered to others at the time of an event to which this insurance applies. These payments will not reduce the limits of insur- ance. SECTION II - WHO IS AN INSURED If you are designated in the Declarations as: a. An individual, you and your spouse are insur- eds. b. A partnership or joint venture, you are an in- sured. Your members, your partners, and their spouses are also insureds, but only with re- spect to the conduct of your business. c. A limited liability company, you are an insured. Your members are also insureds, but only with respect to the conduct of your business. Your managers are insureds, but only with respect to their duties as your managers. d. An organization other than a partnership, joint venture or limited liability company, you are an insured. Your "executive officers" and directors are insureds, but only with respect to their du- ties as your officers or directors. Your stock- holders are also insureds, but only with respect to their liability as stockholders. Page 2 of 6 © ISO Properties, Inc., 2003 CG 00 33 12 04 ? COMMERCIAL GENERAL LIABILITY CG 00 33 12 04 LIQUOR LIABILITY COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declara- tions, and any other person or organization qualifying as a Named Insured under this policy. The words "we", "us" and "our" refer to the Company providing this insurance. The word "insured" means any person or organization qualifying as such under Section II - Who Is An In- sured. Other words and phrases that appear in quotation marks have special meaning. Refer to Section V - Definitions. SECTION I - LIQUOR LIABILITY COVERAGE 1. Insuring Agreement a. We will pay those sums that the insured be- comes legally obligated to pay as damages because of "injury" to which this insurance ap- plies if liability for such "injury" is imposed on the insured by reason of the selling, serving or furnishing of any alcoholic beverage. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "injury" to which this insurance does not apply. We may, at our discretion, investigate any "in- jury" and settle any claim or "suit" that may re- sult. But: (1) The amount we will pay for damages is limited as described in Section III - Limits Of Insurance; and (2) Our right and duty to defend ends when we have used up the applicable limit of insur- ance in the payment of judgments or set- tlements. No other obligation or liability to pay sums or perform acts or services is covered unless ex- plicitly provided for under Supplementary Pay- ments. (2) Prior to the policy period, no insured listed under Paragraph 1. of Section II - Who Is An Insured and no "employee" authorized by you to give or receive notice of an "in- jury" or claim, knew that the "injury" had oc- curred, in whole or in part. If such a listed insured or authorized "employee" knew, prior to the policy period, that the "injury" occurred, then any continuation, change or resumption of such "injury" during or after the policy period will be deemed to have been known prior to the policy period. c. "Injury" which occurs during the policy period and was not, prior to the policy period, known to have occurred by any insured listed under Paragraph 1. of Section II - Who Is An Insured or any "employee" authorized by you to give or receive notice of an "injury" or claim, includes any continuation, change or resumption of that "injury" after the end of the policy period. d. "Injury" will be deemed to have been known to have occurred at the earliest time when any in- sured listed under Paragraph 1. of Section 11 - Who Is An Insured or any "employee" author- ized by you to give or receive notice of an "in- jury" or claim: (1) Reports all, or any part, of the "injury" to us or any other insurer; (2) Receives a written or verbal demand or claim for damages because of the "injury"; or (3) Becomes aware by any other means that "injury" has occurred or has begun to occur. 2. Exclusions This insurance does not apply to: a. Expected Or Intended Injury "Injury" expected or intended from the stand- point of the insured. This exclusion does not apply to "bodily injury" resulting from the use of reasonable force to protect persons or prop- erty. b. Workers' Compensation And Similar Laws b. This insurance applies to "injury" only if: Any obligation of the insured under a workers' (1) The "injury" occurs during the policy period compensation, disability benefits or unem- in the "coverage territory"; and ployment compensation law or any similar law. CG 00 33 12 04 0 ISO Properties, Inc., 2003 Page 1 of 6 COMMERCIAL AUTO CA 23 56 11 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CAP ON LOSSES FROM CERTIFIED ACTS OF TERRORISM This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM BUSINESS AUTO PHYSICAL DAMAGE COVERAGE FORM GARAGE COVERAGE FORM MOTOR CARRIER COVERAGE FORM SINGLE INTEREST AUTOMOBILE PHYSICAL DAMAGE INSURANCE POLICY TRUCKERS COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modi- fied by the endorsement. A. With respect to any one or more "certified acts of terrorism", we will not pay any amounts for which we are not responsible under the terms of the fed- eral Terrorism Risk Insurance Act of 2002 (includ- ing subsequent acts of Congress pursuant to the Act) due to the application of any clause which re- sults in a cap on our liability for payments for ter- rorism losses. "Certified act of terrorism-- means an act that is certified by the Secretary of the Treasury, in con- currence with the Secretary of State and the Attor- ney General of the United States, to be an act of terrorism pursuant to the federal Terrorism Risk Insurance Act of 2002. The federal Terrorism Risk Insurance Act of 2002 sets forth the following cri- teria for a "certified act of terrorism": 1. The act resulted in aggregate losses in excess of $5 million; and 2. The act is a violent act or an act that is dan- gerous to human life, property or infrastructure and is committed by an individual or individuals acting on behalf of any foreign person or for- eign interest, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. B. Application Of Other Exclusions The terms and limitations of any terrorism exclu- sion, or the inapplicability or omission of a terror- ism exclusion, do not serve to create coverage for any loss which would otherwise be excluded un- der this Coverage Form, such as losses excluded by a Nuclear Hazard Exclusion or a War Or Mili- tary Action Exclusion. CA 23 5611 02 © ISO Properties, Inc., 2002 Page 1 of 1 ? COIVEVIERCLAL AUTO CA 01 80 09 97 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PENNSYLVANIA CHANGES This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM MOTOR CARRIER COVERAGE FORM TRUCKERS COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by the endorsement. A. Changes In Liability Coverage 2. The following is added to the General 2. The following is added to Supplementary Conditions Section: Payments: CONSTITUTIONALITY CLAUSE Prejudgment interest awarded against the "insured" on the part of the judgment we pay. An prejudgment interest awarded aaggainst the "insured" is subject to the ap p able Pennsylvania Rules of Civil Pro- cedure. B. Changes In Conditions 1. The following is added to the Loss Con- ditions Section: Paragrapph A.2.b.(5) of the Duties In The Event Of An Accident, Claim Suit Or Loss Condition is replaced by the follow- ing: After we show good cause, submit to ex- amination at our expense, by physicians of our choice. The following is added to the Transfer Of Rights Of Recovery Against Others To Us Condition: If we make anX payment due to an "acci- dent" and the insured" recovers from an- other party in a separate claim or "suit", the insured shall hold the proceeds in trust for us and pay us back the amount we have paid less reasonable attorneys' fees, costs and expenses incurred by the "in- sured" to the extent such payment dupli- cates any amount we have paid under this coverage. The pre mium for, and the coverages of, this Coverage Form have been established in reliance upon the provisions of the Pennsylvania Motor Vehicle Financial Responsibility Law. In the event a court, from which there is no appeal, declares or enters a judgment, the effect of which is to render the provi- sions of such statute invalid or unenforce- able in whole or in part, we shall have the right to recompute the premium payable for the Coverage Form and void or amend the provisions of the Coverage Form, sub- ject to the approval of the Insurance Commissioner. CA 01 80 09 97 Copyright, Insurance Services Office, Inc., 1997 Pagel of 1 ? N. "Suit" means a civil proceeding in which: 1. Damages because of "bodily injury" or "prop- erty damage"; or 2. A "covered pollution cost or expense", to which this insurance applies, are alleged. "Suit" includes: a. An arbitration proceeding in which such damages or "covered pollution costs or ex- penses" are claimed and to which the "in- sured" must submit or does submit with our consent; or b. Any other alternative dispute resolution pro- ceeding in which such damages or "cov- ered pollution costs or expenses" are claimed and to which the insured submits with our consent. 0. 'Temporary worker" means a person who is fur- nished to you to substitute for a permanent "em- ployee" on leave or to meet seasonal or short-term workload conditions. P. 'Trailer" includes semitrailer. Page 12 of 12 0 ISO Properties, Inc., 2005 CA 00 01 03 06 ? 4. An obligation, as required by ordinance, to in- demnify a municipality, except in connection with work for a municipality; 5. That part of any other contract or agreement pertaining to your business (including an in- demnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another to pay for "bodily injury" or "property damage" to a third party or organization. Tort liability means a liability that would be imposed by law in the absence of any contract or agreement; 6. That part of any contract or agreement entered into, as part of your business, pertaining to the rental or lease, by you or any of your "employ- ees", of any "auto". However, such contract or agreement shall not be considered an "insured contract" to the extent that it obligates you or any of your "employees" to pay for "property damage" to any "auto" rented or leased by you or any of your "employees". An "insured contract" does not include that part of any contract or agreement: a. That indemnifies a railroad for "bodily in- jury" or "property damage" arising out of construction or demolition operations, within 50 feet of any railroad property and affect- ing any railroad bridge or trestle, tracks, roadbeds, tunnel, underpass or crossing; or b. That pertains to the loan, lease or rental of an "auto" to you or any of your "employ- ees", if the "auto" is loaned, leased or rented with a driver; or c. That holds a person or organization en- gaged in the business of transporting prop- erty by "auto" for hire harmless for your use of a covered "auto" over a route or territory that person or organization is authorized to serve by public authority. 1. "Leased worker" means a person leased to you by a labor leasing firm under an agreement between you and the labor leasing firm, to perform duties related to the conduct of your business. "Leased worker" does not include a "temporary worker". J. "Loss" means direct and accidental loss or dam- age. K. "Mobile equipment" means any of the following types of land vehicles, including any attached ma- chinery or equipment: 1. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; 3. Vehicles that travel on crawler treads; 4. Vehicles, whether self-propelled or not, main- tained primarily to provide mobility to perma- nently mounted: a. Power cranes, shovels, loaders, diggers or drills; or b. Road construction or resurfacing equipment such as graders, scrapers or rollers. 6. Vehicles not described in Paragraph 1., 2., 3., or 4. above that are not self-propelled and are maintained primarily to provide mobility to per- manently attached equipment of the following types: a. Air compressors, pumps and generators, including spraying, welding, building clean- ing, geophysical exploration, lighting and well servicing equipment; or b. Cherry pickers and similar devices used to raise or lower workers. 6. Vehicles not described in Paragraph 1., 2., 3. or 4. above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not "mobile equipment" but will be considered "autos": a. Equipment designed primarily for: (1) Snow removal; (2) Road maintenance, but not construction or resurfacing; or (3) Street cleaning; b. Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and c. Air compressors, pumps and generators, including spraying, welding, building clean- ing, geophysical exploration, lighting or well servicing equipment. However, "mobile equipment" does not include land vehicles that are subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged. Land vehicles subject to a compulsory or financial responsibility law or other motor vehicle insurance law are considered "autos". L. "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. 2. Vehicles maintained for use solely on or next to M. "Property damage" means damage to or loss of premises you own or rent; use of tangible property. CA 00 01 03 06 © ISO Properties, Inc., 2005 Page 11 of 12 ? 2. Any other land vehicle that is subject to a com- pulsory or financial responsibiNty law or other motor vehicle insurance law where it is li- censed or principally garaged. However, "auto" does not include "mobile equip- ment". C. "Bodily injury" means bodily injury, sickness or disease sustained by a person including death re- sulting from any of these. D. "Covered pollution cost or expense" means any cost or expense arising out of. 1- Any request, demand, order or statutory or regulatory requirement that any "insured" or others test for, monitor, clean up, remove, con- tain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollut- ants"; or 2. Any claim or "suit" by or on behalf of a gov- ernmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to or assessing the effects of "pollutants". Covered pollution cost or expense" does not in- clude any cost or expense arising out of the ac- tual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollut- ants": a. That are, or that are contained in any prop- erty that is. (1) Being transported or towed by, handled, or handled for movement into, onto or from the covered "auto"; (2) Otherwise in the course of transit by or on behalf of the "insured"; (3) Being stored, disposed of, treated or processed in or upon the covered ,'auto'; b. Before the "pollutants" or any property in which the "pollutants" are contained are moved from the place where they are ac- cepted by the "insured" for movement into or onto the covered "auto"; or c. After the "pollutants" or any property in which the "pollutants" are contained are moved from the covered "auto" to the place where they are finally delivered, disposed of or abandoned by the "insured". Paragraph a. above does not apply to fuels, lu- bricants, fluids, exhaust gases or other similar "pollutants" that are needed for or result from the normal electrical, hydraulic or mechanical functioning of the covered "auto" or its parts, if: (1) The "pollutants" escape, seep, migrate, or are discharged, dispersed or re- leased directly from an "auto" part de- signed by its manufacturer to hold, store, receive or dispose of such "pol- lutants"; and (2) The "bodily injury", "property damage" or "covered pollution cost or expense" does not arise out of the operation of any equipment listed in Paragraph 6.b. or 6.c. of the definition of "mobile equip- ment". Paragraphs b. and c. above do not apply to "accidents" that occur away from premises owned by or rented to an "insured" with respect to "pollutants" not in or upon a covered "auto" if. (1) The "pollutants" or any property in which the "pollutants" are contained are upset, overturned or damaged as a result of the maintenance or use of a covered "auto"; and (2) The discharge, dispersal, seepage, mi- gration, release or escape of the "pollut- ants" is caused directly by such upset, overturn or damage. E. "Diminution in value" means the actual or per- ceived loss in market value or resale value which results from a direct and accidental "loss". F. "Employee" includes a "leased worker". "Em- ployee" does not include a "temporary worker". G. "Insured" means any person or organization quali- fying as an insured in the Who Is An Insured pro- vision of the applicable coverage. Except with re- spect to the Limit of Insurance, the coverage af- forded applies separately to each insured who is seeking coverage or against whom a claim or "suit" is brought. H. "Insured contract" means: 1. A lease of premises; 2. A sidetrack agreement; 3. Any easement or license agreement, except in connection with construction or demolition op- erations on or within 50 feet of a railroad; Page 10 of 12 © ISO Properties, Inc., 2005 CA 00 01 03 06 ? 5. Other Insurance 7. Policy Period, Coverage Territory a. For any covered "auto" you own, this Cov- Under this Coverage Form, we cover "acci- erage Form provides primary insurance. dents" and "losses" occurring: For any covered "auto" you don't own, the a. During the policy period shown in the Dec- insurance provided by this Coverage Form larations; and is excess over any other collectible insur- ance. However, while a covered "auto" b. Within the coverage territory. which is a "trailer" is connected to another The coverage territory is: vehicle, the Liability Coverage this Cover- " " a. The United States of America; age Form provides for the trailer is: (1) Excess while it is connected to a motor b. The territories and possessions of the vehicle you do not own. United States of America; (2) Primary while it is connected to a cov- c. Puerto Rico; ered "auto" you own. d. Canada; and b. For Hired Auto Physical Damage Coverage, e. Anywhere in the world if: any covered "auto" you lease, hire, rent or (1) A covered "auto" of the private passen- borrow is deemed to be a covered "auto" ger type is leased, hired, rented or bor- you own. However, any "auto" that is rowed without a driver for a period of 30 leased, hired, rented or borrowed with a days or less; and driver is not a covered "auto". (2) The "insured's" responsibility to pay c. Regardless of the provisions of Paragraph damages is determined in a "suit" on the a. above, this Coverage Form's Liability merits, in the United States of America, Coverage is primary for any liability as- the territories and possessions of the sumed under an "insured contract". United States of America, Puerto Rico, d. When this Coverage Form and any other or Canada or in a settlement we agree Coverage Form or policy covers on the to. same basis, either excess or primary, we We also cover "loss" to, or "accidents" involy- will pay only our share. Our share is the ing, a covered "auto" while being transported proportion that the Limit of Insurance of our between any of these places. Coverage Form bears to the total of the lim- its of all the Coverage Forms and policies g, Two Or More Coverage Forms Or Policies covering on the same basis. Issued By Us 6. Premium Audit If this Coverage Form and any other Coverage Form or policy issued to you by us or any com- a. The estimated premium for this Coverage pany affiliated with us apply to the same "acci- Form is based on the exposures you told us dent', the aggregate maximum Limit of Insur- you would have when this policy began. We ance under all the Coverage Forms or policies will compute the final premium due when shall not exceed the highest applicable Limit of we determine your actual exposures. The Insurance under any one Coverage Form or estimated total premium will be credited policy. This condition does not apply to any against the final premium due and the first Coverage Form or policy issued by us or an af- Named Insured will be billed for the bal- filiated company specifically to apply as excess ance, if any. The due date for the final pre- insurance over this Coverage Form. mium or retrospective premium is the date SECTION V - DEFINITIONS shown as the due date on the bill. If the es- timated total premium exceeds the final A. "Accident" includes continuous or repeated expo- premium due, the first Named Insured will sure to the same conditions resulting in "bodily in- get a refund. jury" or "property damage". b. If this policy is issued for more than one B. "Auto" means: year, the premium for this Coverage Form 1. A land motor vehicle, "trailer" or semitrailer de- will be computed annually based on our signed for travel on public roads; or rates or premiums in effect at the beginning of each year of the policy. CA 00 01 03 06 © ISO Properties, Inc., 2005 Page 9 of 12 ? (2) Immediately send us copies of any re- quest, demand, order, notice, summons or legal paper received concerning the claim or "suit". (3) Cooperate with us in the investigation or settlement of the claim or defense against the "suit". (4) Authorize us to obtain medical records or other pertinent information. (5) Submit to examination, at our expense, by physicians of our choice, as often as we reasonably require. c. If there is "loss" to a covered "auto" or its equipment you must also do the following: (1) Promptly notify the police if the covered "auto" or any of its equipment is stolen. (2) Take all reasonable steps to protect the covered "auto" from further damage. Also keep a record of your expenses for consideration in the settlement of the claim. (3) Permit us to inspect the covered "auto" and records proving the "loss" before its repair or disposition. (4) Agree to examinations under oath at our request and give us a signed statement of your answers. Legal Action Against Us No one may bring a legal action against us un- der this Coverage Form until: a. There has been full compliance with all the terms of this Coverage Form; and b. Under Liability Coverage, we agree in writ- ing that the "insured" has an obligation to pay or until the amount of that obligation has finally been determined by judgment af- ter trial. No one has the right under this pol- icy to bring us into an action to determine the "insured's" liability. 4. Loss Payment - Physical Damage Coverages At our option we may: a. Pay for, repair or replace damaged or sto- len property; b. Return the stolen property, at our expense. We will pay for any damage that results to the "auto" from the theft; or c. Take all or any part of the damaged or sto- len property at an agreed or appraised value. If we pay for the "loss our payment will in- clude the applicable sales tax for the damaged or stolen property. 5. Transfer Of Rights Of Recovery Against Others To Us If any person or organization to or for whom we make payment under this Coverage Form has rights to recover damages from another, those rights are transferred to us. That person or or- ganization must do everything necessary to secure our rights and must do nothing after "accident" or "loss" to impair theta. B. General Conditions 1. Bankruptcy Bankruptcy or insolvency of the "insured" or the "insured's" estate will not relieve us of any obligations under this Coverage Form. 2. Concealment, Misrepresentation Or Fraud This Coverage Form is void in any case of fraud by you at any time as it relates to this Coverage Form. It is also void if you or any other "insured", at any time, intentionally con- ceal or misrepresent a material fact concern- ing: a. This Coverage Form; b. The covered "auto"; c. Your interest in the covered "auto"; or d. A claim under this Coverage Form. 3. Liberalization If we revise this Coverage Form to provide more coverage without additional premium charge, your policy will automatically provide the additional coverage as of the day the revi- sion is effective in your state. 4. No Benefit To Ballee - Physical Damage Coverages We will not recognize any assignment or grant any coverage for the benefit of any person or organization holding, storing or transporting property for a fee regardless of any other pro- vision of this Coverage Form. Page 8 of 12 © ISO Properties, Inc., 2005 CA 00 01 03 06 ? b. Any device designed or used to detect speed measuring equipment such as radar or laser detectors and any jamming appara- tus intended to elude or disrupt speed measurement equipment. c. Any electronic equipment, without regard to whether this equipment is permanently in- stalled, that receives or transmits audio, visual or data signals and that is not de- signed solely for the reproduction of sound. d. Any accessories used with the electronic equipment described in Paragraph c. above. Exclusions 4.c. and 4.d. do not apply to: a. Equipment designed solely for the repro- duction of sound and accessories used with such equipment, provided such equipment is permanently installed in the covered "auto" at the time of the "loss" or such equipment is removable from a housing unit which is permanently installed in the cov- ered "auto" at the time of the "loss", and such equipment is designed to be solely operated by use of the power from the "auto's" electrical system, in or upon the covered "auto"; or b. Any other electronic equipment that is: (1) Necessary for the normal operation of the covered "auto" or the monitoring of the covered "auto's" operating system; or (2) An integral part of the same unit housing any sound reproducing equipment de- scribed in Paragraph a. above and per- manently installed in the opening of the dash or console of the covered "auto" normally used by the manufacturer for installation of a radio. 6. We will not pay for "loss" to a covered "auto" due to "diminution in value". C. Limit Of Insurance 1. The most we will pay for "loss" in any one "ac- cident" is the lesser of: a. The actual cash value of the damaged or stolen property as of the time of the "loss"; or b. The cost of repairing or replacing the dam- aged or stolen property with other property of like kind and quality. 3. If a repair or replacement results in better than like kind or quality, we will not pay for the amount of the betterment. D. Deductible For each covered "auto", our obligation to pay for, repair, return or replace damaged or stolen prop- erty will be reduced by the applicable deductible shown in the Declarations. Any Comprehensive Coverage deductible shown in the Declarations does not apply to "loss" caused by fire or lightning. SECTION IV - BUSINESS AUTO CONDITIONS The following conditions apply in addition to the Common Policy Conditions: A. Loss Conditions 1. Appraisal For Physical Damage Loss If you and we disagree on the amount of "loss", either may demand an appraisal of the "loss". In this event, each party will select a competent appraiser. The two appraisers will select a competent and impartial umpire. The apprais- ers will state separately the actual cash value and amount of "loss". If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally. If we submit to an appraisal, we will still retain our right to deny the claim. 2. Duties In The Event Of Accident, Claim, Suit Or Loss We have no duty to provide coverage under this policy unless there has been full compli- ance with the following duties: a. In the event of "accident", claim, "suit" or "loss", you must give us or our authorized representative prompt notice of the "acci- dent" or "loss". Include: (1) How, when and where the "accident" or "loss" occurred; (2) The "insured's" name and address; and (3) To the extent possible, the names and addresses of any injured persons and witnesses. b. Additionally, you and any other involved "insured" must: 2. An adjustment for depreciation and physical (1) Assume no obligation, make no pay- condition will be made in determining actual ment or incur no. expense without our cash value in the event of a total "loss". consent, except at the "insured's" own cost. CA 00 01 03 06 © ISO Properties, Inc., 2005 Page 7 of 12 ? c. Collision Coverage Caused by: (1) The covered "auto's" collision with an- other object; or (2) The covered "auto's" overturn. 2. Towing We will pay up to the limit shown in the Decla- rations for towing and labor costs incurred each time a covered "auto" of the private pas- senger type is disabled. However, the labor must be performed at the place of disablement. 3. Glass Breakage - Hitting A Bird Or Animal - Falling Objects Or Missiles If you carry Comprehensive Coverage for the damaged covered "auto", we will pay for the following under Comprehensive Coverage: a. Glass breakage; b. "Loss" caused by hitting a bird or animal; and c. "Loss" caused by falling objects or missiles. However, you have the option of having glass breakage caused by a covered "auto's" colli- sion or overturn considered a "loss" under Col- lision Coverage. 4. Coverage Extensions a. Transportation Expenses We will pay up to $20 per day to a maxi- mum of $600 for temporary transportation expense incurred by you because of the to- tal theft of a covered "auto" of the private passenger type. We will pay only for those covered "autos" for which you carry either Comprehensive or Specified Causes of Loss Coverage. We will pay for temporary transportation expenses incurred during the period beginning 48 hours after the theft and ending, regardless of the policy's expi- ration, when the covered "auto" is returned to use or we pay for its "loss". b. Loss Of Use Expenses For Hired Auto Physical Damage, we will pay expenses for which an "insured" be- comes legally responsible to pay for loss of use of a vehicle rented or hired without a driver, under a written rental contract or agreement. We will pay for loss of use .ex- penses if caused by: (2) Speed Causes Of Loss only if the Declarations indicate that Specified Causes Of Loss Coverage is provided for any covered "auto"; or (3) Collision only if the Declarations indicate that Collision Coverage is provided for any covered "auto". However, the most we will pay for any ex- penses for loss of use is $20 per day, to a maximum of $600. B. Exclusions 1. We will not pay for "loss" caused by or result- ing from any of the following. Such "loss" is ex- cluded regardless of any other cause or event that contributes concurrently or in any se- quence to the "loss". a. Nuclear Hazard (1) The explosion of any weapon employing atomic fission or fusion; or (2) Nuclear reaction or radiation, or radioac- tive contamination, however caused. b. War Or Military Action (1) War, including undeclared or civil war; (2) Warlike action by a military force, includ- ing action in hindering or defending against an actual or expected attack, by any government, sovereign or other au- thority using military personnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power or action taken by gov- ernmental authority in hindering or de- fending against any of these. 2. We will not pay for "loss" to any covered "auto" while used in any professional or organized racing or demolition contest or stunting activity, or while practicing for such contest or activity. We will also not pay for "loss" to any covered "auto" while that covered "auto" is being pre- pared for such a contest or activity. 3. We will not pay for "loss" caused by or result- ing from any of the following unless caused by other "loss" that is covered by this insurance: a. Wear and tear, freezing, mechanical or electrical breakdown. b. Blowouts, punctures or other road damage to tires. (1) Other than collision only if the Declara- 4. We will not pay for "loss" to any of the follow- tions indicate that Comprehensive Cov- ing: erage is provided for any covered a. Tapes, records, discs or other similar audio, auto , visual or data electronic devices designed for use with audio, visual or data electronic equipment. Page 6 of 12 0 ISO Properties, Inc., 2005 CA 00 01 03 06 ? (2) Otherwise in the course of transit by or on behalf of the "insured"; or (3) Being stored, disposed of, treated or processed in or upon the covered "auto"; b. Before the "pollutants" or any property in which the "pollutants" are contained are moved from the place where they are ac- cepted by the "insured" for movement into or onto the covered "auto"; or c. After the "pollutants" or any property . in which the "pollutants" are contained are moved from the covered "auto" to the place where they are finally delivered, disposed of or abandoned by the "insured". Paragraph a. above does not apply to fuels, lu- bricants, fluids, exhaust gases or other similar "pollutants" that are needed for or result from the normal electrical, hydraulic or mechanical functioning of the covered "auto" or its parts, if: (1) The "pollutants" escape, seep, migrate, or are discharged, dispersed or re- leased directly from an "auto" part de- signed by its manufacturer to hold, store, receive or dispose of such "pol- lutants"; and (2) The "bodily injury", "property damage" or "covered pollution cost or expense" does not arise out of the operation of any equipment listed in Paragraphs 6.b. and 6.c. of the definition of "mobile equipment". Paragraphs b. and c. above of this exclusion do not apply to "accidents" that occur away from premises owned by or rented to an "in- sured" with respect to "pollutants" not in or upon a covered "auto" if: (1) The "pollutants" or any property in which the "pollutants" are contained are upset, overturned or damaged as a result of the maintenance or use of a covered "auto"; and (2) The discharge, dispersal, seepage, mi- gration, release or escape of the "pollut- ants" is caused directly by such upset, overturn or damage. 12. War "Bodily injury" or "property damage" arising di- rectly or indirectly out of: a. War, including undeclared or civil war; c. Insurrection, rebellion, revolution, usurped power, or action taken by governmental au- thority in hindering or defending against any of these. 13. Racing Covered "autos" while used in any professional or organized racing or demolition contest or stunting activity, or while practicing for such contest or activity. This insurance also does not apply while that covered "auto" is being prepared for such a contest or activity. C. Limit Of Insurance Regardless of the number of covered "autos", "in- sureds", premiums paid, claims made or vehicles involved in the "accident", the most we will pay for the total of all damages and "covered pollution cost or expense" combined, resulting from any one "accident" is the Limit of Insurance for Liability Coverage shown in the Declarations. All "bodily injury", "property damage" and "covered pollution cost or expense" resulting from continu- ous or repeated exposure to substantially the same conditions will be considered as resulting from one "accident". No one will be entitled to receive duplicate pay- ments for the same elements of "loss" under this Coverage Form and any Medical Payments Cov- erage Endorsement, Uninsured Motorists Cover- age Endorsement or Underinsured Motorists Cov- erage Endorsement attached to this Coverage Part. SECTION III - PHYSICAL DAMAGE COVERAGE A. Coverage 1. We will pay for "loss" to a covered "auto" or its equipment under: a. Comprehensive Coverage From any cause except: (1) The covered "auto's" collision with an- other object; or (2) The covered "auto's" overturn. b. Specified Causes Of Loss Coverage Caused by: (1) Fire, lightning or explosion; (2) Theft; (3) Windstorm, hail or earthquake; (4) Flood; (6) Mischief or vandalism; or b. Warlike action by a military force, including (6) The sinking, burning, collision or derail- action in hindering or defending against an ment of any conveyance transporting actual or expected attack, by any govern- the covered "auto". ment, sovereign or other authority using military personnel or other agents; or CA 00 01 03 06 0 ISO Properties, Inc., 2005 Page 5 of 12 r ? (2) Performing the duties related to the con- duct of the "insured's" business; or b. The spouse, child, parent, brother or sister of that "employee" as a consequence of Paragraph a. above. This exclusion applies: (1) Whether the "insured" may be liable as an employer or in any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. But this exclusion does not apply to "bodily in- jury" to domestic "employees" not entitled to workers' compensation benefits or to liability assumed by the "insured" under an "insured contract". For the purposes of the Coverage Form, a domestic "employee" is a person en- gaged in household or domestic work per- formed principally in connection with a resi- dence premises. 5. Fellow Employee "Bodily injury" to any fellow "employee" of the "insured" arising out of and in the course of the fellow "employee's" employment or while per- forming duties related to the conduct of your business. 6. Care, Custody Or Control "Property damage" to or "covered pollution cost or expense" involving property owned or trans- ported by the "insured" or in the "insured's" care, custody or control. But this exclusion does not apply to liability assumed under a sidetrack agreement. 7. Handling Of Property "Bodily injury" or "property damage" resulting from the handling of property: a. Before it is moved from the place where it is accepted by the "insured" for movement into or onto the covered "auto"; or b. After it is moved from the covered "auto" to the place where it is finally delivered by the "insured". 8. Movement Of Property By Mechanical Device "Bodily injury" or "property damage" resulting from the movement of property by a mechani- cal device (other than a hand truck) unless the device is attached to the covered "auto". 9. Operations "Bodily injury" or "property damage" arising out of the operation of: a. Any equipment listed in Paragraphs 6.b. and 6.c. of the definition of "mobile equip- ment"; or b. Machinery or equipment that is on, attached to, or part of, a land vehicle that would qual- ify under the definition of "mobile equip- ment" if it were not subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged. 10. Completed Operations "Bodily injury" or "property damage" arising out of your work after that work has been com- pleted or abandoned. In this exclusion, your work means: a. Work or operations performed by you or on your behalf, and b. Materials, parts or equipment fumished in connection with such work or operations. Your work includes warranties or representa- tions made at any time with respect to the fit- ness, quality, durability or performance of any of the items included in Paragraph a. or b. above. Your work will be deemed completed at the earliest of the following times: (1) When all of the work called for in your contract has been completed. (2) When all of the work to be done at the site has been completed if your contract calls for work at more than one site. (3) When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or subcontractor working on the same project. Work that may need service, maintenance, cor- rection, repair or replacement, but which is oth- erwise complete, will be treated as completed. 11. Pollution "Bodily injury" or "property damage" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or es- cape of "pollutants": a. That are, or that are contained in any prop- erty that is: (1) Being transported or towed by, handled, or handled for movement into, onto or from, the covered "auto"; Page 4 of 12 0 ISO Properties, Inc., 2005 CA 00 01 03 06 ? (2) Your "employee" if the covered "auto" is owned by that "employee" or a member of his or her household. (3) Someone using a covered "auto" while he or she is working in a business of selling, servicing, repairing, parking or storing "autos" unless that business is yours. (4) Anyone other than your "employees", partners (if you are a partnership), members (if you are a limited liability company), or a lessee or borrower or any of their "employees", while moving property to or from a covered "auto". (5) A partner (if you are a partnership), or a member (if you are a limited liability company) for a covered "auto" owned by him or her or a member of his or her household. c. Anyone liable for the conduct of an "in- sured" described above but only to the ex- tent of that liability. 2. Coverage Extensions a. Supplementary Payments We will pay for the "insured": (1) All expenses we incur. (2) Up to $2,000 for cost of bail bonds (in- cluding bonds for related traffic law vio- lations) required because of an "acci- dent" we cover. We do not have to fur- nish these bonds. (3) The cost of bonds to release attach- ments in any "suit" against the "insured" we defend, but only for bond amounts within our Limit of Insurance. (4) All reasonable expenses incurred by the "insured" at our request, including actual loss of earnings up to $250 a day be- cause of time off from work. (5) All costs taxed against the "insured" in any "suit" against the "insured" we de- fend. (6) All interest on the full amount of any judgment that accrues after entry of the judgment in any "suit" against the "in- sured" we defend, but our duty to pay in- terest ends when we have paid, offered to pay or deposited in court the part of the judgment that is within our Limit of Insurance. These payments will not reduce the Limit of Insurance. b. Out-Of-State Coverage Extensions While a covered "auto" is away from the state where it is licensed we will: (1) Increase the Limit of Insurance for Li- ability Coverage to meet the limits speci- fied by a compulsory or financial re- sponsibility law of the jurisdiction where the covered "auto" is being used. This extension does not apply to the limit or limits specified by any law governing motor carriers of passengers or prop- erty. (2) Provide the minimum amounts and types of other coverages, such as no- fault, required of out-of-state vehicles by the jurisdiction where the covered "auto" is being used. We will not pay anyone more than once for the same elements of loss because of these extensions. B. Exclusions This insurance does not apply to any of the follow- ing: 1. Expected Or Intended Injury "Bodily injury" or "property damage" expected or intended from the standpoint of the "in- sured". 2. Contractual Liability assumed under any contract or agree- ment. But this exclusion does not apply to liability for damages: a. Assumed in a contract or agreement that is an "insured contract" provided the "bodily injury" or "property damage" occurs subse- quent to the execution of the contract or agreement; or b. That the "insured" would have in the ab- sence of the contract or agreement. 3. Workers' Compensation Any obligation for which the "insured" or the "insured's" insurer may be held liable under any workers' compensation, disability benefits or unemployment compensation law or any similar law. 4. Employee Indemnification And Employer's Liability "Bodily injury" to: a. An "employee" of the "insured" arising out of and in the course of: (1) Employment by the "insured"; or CA 00 01 03 06 0 ISO Properties, Inc., 2005 Page 3 of 12 G 19 Mobile Equip- ment Subject To Compulsory Or Financial Re- sponsibility Or Other Motor Ve- hicle Insurance Only those "autos" that are land vehicles and that would qualify under the definition of "mobile equipment" under this policy if they were not subject to a compulsory or financial responsibility law or other motor vehicle insurance law where they are licensed or principally garaged. B. Owned Autos You Acquire After The Policy Begins 1. If Symbols 1, 2, 3, 4, 5, 6 or 19 are entered next to a coverage in Item Two of the Declara- tions, then you have coverage for "autos" that you acquire of the type described for the re- mainder of the policy period. 2. But, if Symbol 7 is entered next to a coverage in Item Two of the Declarations, an "auto" you acquire will be a covered "auto" for that cover- age only if: a. We already cover all "autos" that you own for that coverage or it replaces an "auto" you previously owned that had that cover- age; and b. You tell us within 30 days after you acquire it that you want us to cover it for that cover- age. C. Certain Trailers, Mobile Equipment And Temporary Substitute Autos If Liability Coverage is provided by this Coverage Form, the following types of vehicles are also cov- ered "autos" for Liability Coverage: 1. "Trailers" with a load capacity of 2,000 pounds or less designed primarily for travel on public roads. 2. "Mobile equipment" while being carried or towed by a covered "auto". 3. Any "auto" you do not own while used with the permission of its owner as a temporary substi- tute for a covered "auto" you own that is out of service because of its: a. Breakdown; b. Repair; C. Servicing; d. "Loss"; or e. Destruction. SECTION 11- LIABILITY COVERAGE A. Coverage We will pay all sums an "insured" legally must pay as damages because of "bodily injury" or "property damage" to which this insurance applies, caused by an "accident" and resulting from the ownership, maintenance or use of a covered "auto". We will also pay all sums an "insured" legally must pay as a covered pollution cost or expense" to which this insurance applies, caused by an *'acci- dent' and resulting from the ownership, mainte- nance or use of covered "autos". However, we will only pay for the "covered pollution cost or ex- pense" if there is either "bodily injury" or "property damage" to which this insurance applies that is caused by the same "accident". We have the right and duty to defend any "in- sured" against a "suit" asking for such damages or a "covered pollution cost or expense". However, we have no duty to defend any "insured" against a "suit" seeking damages for "bodily injury" or "prop- erty damage" or a "covered pollution cost or ex- pense" to which this insurance does not apply. We may investigate and settle any claim or "suit" as we consider appropriate. Our duty to defend or settle ends when the Liability Coverage Limit of Insurance has been exhausted by payment of judgments or settlements. 1. Who Is An Insured The following are "insureds": a. You for any covered "auto". b. Anyone else while using with your permis- sion a covered "auto" you own, hire or bor- row except: (1) The owner or anyone else from whom you hire or borrow a covered "auto". This exception does not apply if the covered "auto" is a "trailer" connected to a covered "auto" you own. Page 2 of 12 © ISO Properties, Inc., 2005 CA 00 01 03 06 ? COMMERCIAL AUTO CA 00 01 03 06 BUSINESS AUTO COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "your" re- fer to the Named Insured shown in the Declarations. The words "we", "us" and "our' refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to Section V - Definitions. SECTION I - COVERED AUTOS Item Two of the Declarations shows the "autos" that are covered "autos" for each of your coverages. The following numerical symbols describe the "autos" that may be covered "autos". The symbols entered next to a coverage on the Declarations designate the only "autos" that are covered "autos". A. Description Of Covered Auto Designation Symbols Symbol Description Of Covered Auto Designation Symbols 1 An "Auto" 2 Owned "Autos" Only those "autos" you own (and for Liability Coverage any "trailers" you don't own Only while attached to power units you own). This includes those "autos" you acquire ownership of after the policy begins. 3 Owned Private Only the private passenger "autos" you own. This includes those private passen- Passenger ger "autos" you acquire ownership of after the policy begins. "Autos" Only 4 Owned "Autos" Only those "autos" you own that are not of the private passenger type (and for Li- Other Than Pri- ability Coverage any "trailers" you don't own while attached to power units you vate Passenger own). This includes those "autos" not of the private passenger type you acquire "Autos" Only ownership of after the policy begins. 6 Owned "Autos" Only those "autos" you own that are required to have No-Fault benefits in the state Subject To No- where they are licensed or principally garaged. This includes those "autos" you Fault acquire ownership of after the policy begins provided they are required to have No- Fault benefits in the state where the are licensed or principally garaged. 6 Owned "Autos" Only those "autos" you own that because of the law in the state where they are Subject To A licensed or principally garaged are required to have and cannot reject Uninsured Compulsory Un- Motorists Coverage. This includes those "autos" you acquire ownership of after the insured Motor- policy begins provided they are subject to the same state uninsured motorists re- ists Law uirement. 7 Specifically De- Only those "autos" described in Item Three of the Declarations for which a pre- scribed "Autos" mium charge is shown (and for Liability Coverage any "trailers" you don't own while attached to an power unit described in Item Three). 8 Hired "Autos" Only those "autos" you lease, hire, rent or borrow. This does not include any "auto" Only you lease, hire, rent, or borrow from any of your "employees", partners (if you are a partnership), members (if you are a limited liability company) or members of their households. 9 Nonowned Only those "autos" you do not own, lease, hire, rent or borrow that are used in con- "Autos" Only nection with your business. This includes "autos" owned by your "employees", partners (if you are a partnership), members (if you are a limited liability company), or members of their households but only while used in your business or your per- sonal affairs. CA 00 01 03 06 0 ISO Properties, Inc., 2005 Page 1 of 12 ? PI-CIM-053 5.93 K. "Normal" means conditions that would have existed if no direct physical "loss" had occurred. L. "Operations" means business activities you perform using the Covered Property at the described premises. M. "Period of Restoration" means the period from the date the "loss" occurs until the Covered Property should be repaired, rebuilt, or replaced with reasonable speed and similar quality. The "Period of Restoration" is not limited by the expiration or termination of this Coverage Form. N. "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. 0. `Valuable papers and records" means inscribed, printed or written documents, manuscripts or records, including abstracts, books, deeds, drawings, films, maps or mortgages. But "Valuable papers and records" does not mean money or securities, "data", or "media". P. `Volcanic action" means direct "loss" resulting from the eruption of a volcano when the "loss" is caused by: 1. Airborne volcanic blast or airborne shock waves; 2. Ash, dust or particulate matter, or 3. Lava flow. Q. "Work day" means each period of 24 consecutive hours in which you would normally conduct your "operations", beginning at 12:01 a.m. standard time at the premises where the "loss" occurs and ending at 12:00 a.m. standard time at the premises where the "loss" occurs. Page 13 of 13 PkCIM-053 5-03 2. Continuing normal operating expenses incurred, including payroll. B. "Computer Facility Property" means: 1. Computer "hardware", "data" and "media" used in your business which you own, or is property of others in your care, custody or control; 2. The buildings or structure in which such "hardware", "data" and "media" are located, if the "loss" prevents access to your computer facility; or 3. The air conditioning system or electrical system needed to operate your computer "hardware". C. "Data" means facts, figures, concepts, or instructions that are in a form that can be communicated, interpreted, or processed by computer systems. This includes computer programs, but not "media". D. "Extra Expenses" means operating expenses over and above the costs you normally would have incurred if no "loss" had occurred. This includes expenses to rent or use other property, premises or facilities. It does not include: 1. Loss of profits or earnings that result from a reduction of your "operations"; 2. Any direct or indirect property damage that is insurable under a property damage policy; or 3. The cost to repair or replace damaged property. However, we will pay expenses in excess of the usual cost to repair or replace such property if they are necessary in order to reduce your "extra expenses". We will not pay more for such expenses to repair or replace damaged property than the amount by which they reduce your total "extra expenses" loss. E. "Flood" means flood, surface water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not. F. "Hardware" means a network of equipment and components which accept information, process and analyze that information according to a plan and then produces the desired results. It includes disk and tape drives, printers, display screens, remote terminals, computers which control manufacturing or production equipment or machinery, and computerized telephone systems, but it does not include computer "media". G. "Loss" means accidental loss or damage. H. "Maximum Period of Indemnity" means the maximum time period in number of consecutive days after a direct physical "loss" for which we will pay for "Business Income", "Extra Expenses", or any combination of "Business Income" and "Extra Expenses" resulting from one occurrence. 1. "Media" means materials on which "data" can be recorded, such as magnetic tapes, disk packs, paper tapes, and cards. J. "Monthly Limit of Indemnity" means the maximum amount at any scheduled premises that we will pay for "Business Income", "Extra Expenses", or any combination of "Business Income" and "Extra Expenses" in each period of 30 consecutive days after a direct physical "loss". Page 12 of 13 PI-CIM-053 5=03 (2) The cost to replace the blank "media" with substantially identical property. b. "Data" and "Media" that are listed by endorsement on this policy shall be valued as the amount per item specified on the endorsement. This listed amount shall be the agreed value for the purpose of this coverage. C. The following conditions are applicable to the Business Income with Extra Expense Section, and apply in addition to the Commercial Inland Marine Conditions, and the Common Policy Conditions: 1. Applicable to Extra Expenses a. Salvage If you buy property to use temporarily until your "operations" return to "normal", we will subtract its remaining value from the "extra expenses" you have. b. Resumption of Operations You will resume all or part of your "operations" as quickly as possible. We will reduce the amount of your loss to the extent you can return your "operations" to "normal" and discontinue your "extra expenses". 2. Applicable to the Business Income a. Measure of Recovery In the event that direct physical "loss" to Covered Property causes a total shutdown of your "operations" the measure of recovery for each "work day" during the "period of restoration" will be the amount of "business Income" your "operations" would have earned if no "loss" had occurred. In the event that direct physical "loss" to Covered Property causes a partial shutdown of your "operations" the measure of recovery for each "work day" during the "period of restoration" will be the proportion of the Limit of Insurance for each "work day" that the amount of your "business income" loss during the "period of restoration" bears to the amount of "business income" your "operations" would have earned if no "loss" had occurred. b. Resumption of Operations If you can reduce your "business Income" loss: (1) By total or partial resumption of your operations" at the premises where the "loss" occurred; or (2) By using other property at other premises; you must do so. We will deduct the amount of such reduction from your adjusted "business Income" loss. VI. Definitions A. "Business Income" means the sum of the following amounts: 1. Net Income (Net Profit or Loss before income taxes) that would have been earned or incurred; and Page 11 of 13 PI-CIM-053 5-03 (2) We will not pay more for "loss" on a Actual Cash Value basis than the least of the following: (i) The Limit of Insurance applicable to the lost or damaged property; (ii) The cost to replace the lost or damaged property with other property of comparable material and quality; and used for the same purpose; or (iii) The amount you actually spend that is necessary to repair or replace the lost or damaged property. c. Operational Replacement Cost If the Valuation Basis shown in the Coverage Declaration is Operational Replacement Cost: (1) We will determine the value of the lost or damaged Property at Operational Replacement Cost, except as provided below. Operational Replacement Cost means the cost to replace the lost or damaged property with new property intended to perform the same function. (2) You may make a claim for "loss" covered by this insurance on an Actual Cash Value basis instead of an Operational Replacement Cost basis. In the event you elect to have "loss" settled on an Actual Cash Value basis, you may still make a claim for the additional coverage which Operational Replacement Cost provides if you notify us of your intent to do so within 180 days after the "loss". (3) However, for Operational Replacement Cost to apply, there must be a total "loss" of the current item. If a partial "loss" occurs to an item covered for Operational Replacement Cost, we will pay as if the item were insured for Replacement Cost as explained under 13.1 a. of this Coverage Form. (4) We will not pay more for "loss" on an Operational Replacement Cost basis than the least of the following: (1) The Limit of Insurance applicable to the lost or damaged property; (ii) The cost to replace, on the same premises, the lost or damaged property with other property of comparable material and quality; and used to perform the same functions; or (iii)The amount you actually spend that is necessary to repair or replace the lost or damaged property. 2. Valuation - Computer "Data" and "Media" General Condition E. Valuation of the Commercial Inland Marine Conditions is replaced by the following: the event of a "loss" we will determine the value of Covered Property as of the date of the "loss" as follows: a. "Data" and "Media" not specifically listed by endorsement on this policy shall be valued as follows: (1) The actual cost of reproducing or replacing the lost or damaged "data" and "media", if you actually reproduce or replace them; or Page 10 of 13 PI-CW 053 5.03 a. We cover "loss" commencing within the Coverage Territory. b. The Coverage Territory is the United States of America and Canada. B. The following conditions are applicable to the Computer Property Section, and apply in addition to the Commercial Inland Marine Conditions, and the Common Policy Conditions: 1. Valuation - Computer Hardware General Condition E. Valuation of the Commercial Inland Marine Conditions is replaced by the following: In the event of a "loss" we will determine the value of Covered Property as of the date of the "loss" as follows: a. Replacement Cost If the Valuation Basis shown in the Coverage Declarations applicable to this Covered Property is Replacement Cost: (1) We will determine the value of the lost or damaged property at Replacement Cost, except as provided below. Replacement Cost means the cost to replace with new property of comparable material and quality and used for the same purpose without deduction for depreciation. (2) You may make a claim for "loss" covered by this insurance on an Actual Cash Value basis instead of a Replacement Cost basis. In the event you elect to have the "loss" settled on an Actual Cash Value basis, you may still make a claim for the additional coverage which Replacement Cost provides if you notify us of your intent to do so within 180 days after the "loss". (3) We will not pay on a Replacement Cost basis for any "loss": (i) Until the lost or damaged property is actually repaired or replaced; and (ii) Unless the repairs or replacement are made as soon as reasonably possible after the "loss", (4) We will not pay more for "loss" on a Replacement Cost basis than the least of the following: (i) The Limit of Insurance applicable to the lost or damaged property; (ii) The cost to replace the lost or damaged property with other property of comparable material and quality; and used for the same purpose; or (iii) The amount you actually spend that is necessary to repair or replace the lost or damaged property. b. Actual Cash Value if the Valuation Basis shown in the Coverage Declarations is Actual Cash Value. (1) We will determine the value of lost or damaged property at Actual Cash Value as of the time of "loss", including an allowance for depreciation. Page 9 of 13 Pi=CIM-053 5-03 1. Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body. 2. Weather conditions. But this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in paragraph II. A. above to produce the "loss". Ill. Additional Exclusions applying to the Business Income with Extra Expense Coverage Section: We will not pay for "loss" caused by or resulting from any of the following: A. Any local or State ordinance or law regulating construction or repair of buildings or structures. B. Interference by strikers or other persons at your premises with the repair or replacement of property which has been damaged or destroyed, or with your efforts to resume "operations". C. The suspension, lapse, or cancellation of any lease, license, contract, or order. IV. Limits of Insurance The most we will pay for "loss" in any one occurrence: A. For each Coverage Section, regardless of the number of premises suffering "loss" in any one occurrence, is the Limit of Insurance applicable to that Coverage Section in the Coverage Declarations; B. For all other coverage provided under this Coverage Form is the applicable Limit of Insurance shown in the Coverage Declarations. C. For Computer Property while in transit is the Superseding Limit shown on the Coverage Declarations. If a Superseding Limit is not entered, then the Basic Limit will apply. The Basic or Superseding Limit of Insurance, whichever applies, is the only applicable Limit of Insurance for Computer Property while in transit, and no other Limit or combination of Limits applies. D. For Computer Property while temporarily within other premises is the Superseding Limit shown on the Coverage Declarations. If a Superseding Limit is not entered, then the Basic Limit will apply. The Basic or Superseding Limit of Insurance, whichever applies, is the only applicable Limit of Insurance for Computer Property while temporarily within other premises, and no other Limit or combination of Limits applies. V. Deductible We will not pay for "loss" in any one occurrence until the amount of "loss" exceeds the Deductible or Waiting Period shown in the Coverage Form Declarations. We will then pay the amount of "loss" in excess of the Deductible, up to the applicable Limit of Insurance. If more than one deductible is applicable under this Coverage Form at a scheduled premises, we will only apply the highest amount that is applicable. VI. Additional Conditions A. The following condition is applicable to all Coverage Sections, and applies in addition to the Commercial Inland Marine Conditions, and the Common Policy Conditions: 1. Policy Period, Coverage Territory Under this Coverage Form: Page 8 of 13 PI-CIM-053 5-03 1. Governmental Action Seizure or destruction of property by order of governmental authority. But we will pay for "loss" caused by or resulting from acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread if the fire would be covered under this Coverage Form. 2. Nuclear Hazard a. Any weapon employing atomic fission or fusion; or b. Nuclear reaction or radiation, or radioactive contamination from any other cause. But we will pay for direct "loss" by resulting fire if the fire would be covered under this Coverage Form. 3. Off-Premises Services The failure of power or other utility service supplied to the described premises, however caused, if the failure occurs away from the described premises. But if "loss" by a Covered Cause of Loss results, we will pay for that resulting "loss". This exclusion does not apply to the Off-Premises Power Supply Failure Coverage Extension. 4. War and Military Action a. War, including undeclared or civil war; b. Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or c. Insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hindering or defending against any of these. B. We will not pay for "loss" caused by or resulting from any of the following: 1. Delay, loss of use, loss of market, or any other consequential loss, 2. Discharge, dispersal, seepage, migration, release or escape of "pollutants". 3. Dishonest acts by you or any of your partners, officers, directors, or trustees whether or not acting alone or in collusion with other persons or occurring during the hours of employment. 4. Error in machine programming or instructions to any machine. 5. Wear and tear, any quality in the property that causes it to damage or destroy itself, hidden or latent defect, gradual deterioration, depreciation, insects, vermin, rodents. 6. Voluntary parting with any property by you or anyone entrusted with the property if induced to do so by any fraudulent scheme, trick, device, or false pretense. C. We will not pay for "loss" caused by or resulting from any of the following. But if "loss" by any of the Covered Causes of Loss results, we will pay for that resulting "loss Page 7 of 13 PI-CIM-053 5-03 C. Applicable To All Coverage Sections Off Premises Power Supply Failure We will pay for "loss" caused by interruption of power supply service to the described premises. The interruption must be caused by direct physical "loss" by any of the Covered Causes of Loss to the following types of property not on the described premises, supplying electricity, steam or gas to the described premises. a. Utility generating plants; b. Switching stations; c. Substations; d. Transformers; and e. Transmission Lines; But not overhead transmission lines. The most we will pay under the Coverage Extension in any one occurrence is $25,000. This Coverage Extension is in addition to the Limits of Insurance provided by this Coverage Form. D. Property Not Covered Covered Property does not include: 1. `Valuable papers and records" unless they are converted into "data" form, and then only in that form; 2. Under the Computer Property Coverage Section, any computer "data" or "media" which cannot be reproduced or replaced with others of the same kind of quality, unless they are scheduled in an attached Software Specified Value Endorsement; 3. Property which you are leasing or renting to others while it is away from your premises; 4. Contraband, or property in the course of illegal transportation or trade; or 5. Manufacturing or production machinery or equipment. E. Covered Causes of Loss Covered Causes of Loss means Risks of Direct Physical Loss to Covered Property except those Causes of Loss listed in the Exclusions. II. Exclusions A. We will not pay for "loss" caused directly or indirectly by any of the following. Such "loss" is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the "loss". Page 6 of 13 PI-CIM'053 5-03 This Coverage is in addition to the applicable Lines of Insurance provided by the Computer Property Coverage Section. h. Transfer Between Premises Coverage We will pay for direct physical "loss" caused by any of the Covered Causes of Loss to Covered Property which you transfer between scheduled premises. The most we will pay under this Additional Coverage in any one occurrence is the Superseding Limit shown on the Coverage Declarations. If a Superseding Limit is not entered, then the Basic Limit will apply. The Basic or Superseding Limit of Insurance, whichever applies, is the only applicable Limit of Insurance for Computer Property that has been transferred between premises, and no other Limit or combination of Limits applies. B. Business Income with Extra Expense Coverage Section 1. Subject to the "Maximum Period of Indemnity" and the "Monthly Limit of Indemnity" shown on the Coverage Declarations, we will pay for the actual loss of "business i"ncome" you sustain due to the necessary suspension of your "operations" during the "period of restoration". The suspension must occur during the policy period at a premises shown in the Coverage Declarations or on an attached schedule, and must be caused by direct physical "loss" to "Computer Facility Property" caused by or resulting from any of the Covered Causes of Loss. We will pay your "business income" loss if you are prohibited access to the premises where your computer facility is located by order of civil authority because of direct physical "loss" to adjacent property caused by or resulting from any of the Covered Causes of Loss. a. This Coverage for prohibited access to premises will apply from the time of such order and for up to two weeks. b. This Coverage for prohibited access to premises does not increase the Limits of Insurance provided by the Business Income with Extra Expense Coverage Section. 2. Subject to the "Maximum Period of Indemnity" and the "Monthly Limit of Indemnity" shown on the Coverage Declarations, we will pay the actual and necessary "extra expenses" you incur, except the cost of extinguishing a fire, in order to continue your "operations" during the "period of restoration". The "extra expenses" must be incurred during the policy period at a premises shown in the Coverage Declarations or on an attached schedule, and must result from direct physical "'loss" to "Computer Facility Property" caused by or resulting from any of the Covered Causes of Loss. We will pay the actual and necessary "extra expenses" you incur to continue your "operations" if you are prohibited access to the premises where your computer facility is located by order of civil authority because of direct physical "loss" to adjacent property caused by or resulting from any of the Covered Causes of Loss. a. This Coverage for prohibited access to premises will apply from the time of such order and for up to two weeks. b. This Coverage for prohibited access to premises does not increase the Limits of Insurance provided by the Business Income with Extra Expense Coverage Section. Page 5 of 13 Pi-CIM-053 5-03 (2) Insurance under this Additional Coverage will end when any of the following first occurs: (a) This policy expires; (b) 60 days expire after you acquire the property; or (c) You report such property to us. (3) We will charge you additional premium for values reported from the date you acquire the property. This Additional Coverage does not increase the applicable Limits of Insurance provided by the Computer Property Coverage Section. e. Additionally Acquired Premises (1) We will pay for direct physical "loss" to the covered computer "hardware" at new premises not listed in the Coverage Declarations or on an attached schedule caused by or resulting from any of the Covered Causes of Loss. The most we will pay under this Additional Coverage for covered computer "hardware" in any one occurrence is $250,000. (2) Insurance under this Additional Coverage will end when any of the following first occurs: (a) This policy expires; (b) 60 days after you move the covered computer "hardware" to the new premises; or (c) You report the move to the new premises to us. (3) We will have the right to make a premium adjustment for such new premises. The adjustment will be made from the date you acquire the premises, and will be pro-rata of the rates in effect on that date. This Additional Coverage does not increase the applicable Limits of Insurance provided by the Computer Property Coverage Section. f. Recharge or Refill of Fire Protection System We will pay your expenses to recharge or refill an automatic fire protection system that is specifically designed to protect the Covered Property when such system is discharged as a result of any of the Covered Causes of Loss. The most we will pay under this Additional Coverage in any one occurrence is $50,000. This Coverage is in addition to the applicable Limits of Insurance provided by the Computer Property Coverage Section. g. Worldwide Transit Extension The provisions in this Coverage Form for Computer Property while in Transit, and for Computer Property Temporarily within other premises are extended to provide coverage world-wide. In no event will we pay more than the lesser of the following amounts: (1) 10% of the Limit of Insurance shown in the Coverage Declarations for Property While In Transit; or (2) $15,000. Page 4 of 13 PI-CIM-053 5-63 (2) We will pay 25% of the amount we pay for the direct physical "loss" to Covered Property; plus the Deductible in this policy applicable to that "toss", but This Additional Coverage does not apply to costs to: (a) Extract "pollutants" from land or water; or to (b) Remove, restore or replace polluted land or water. This limit does not increase any applicable Limits of Insurance. (3) If either: (a) The sum of direct physical "loss" and Debris Removal expenses exceeds the applicable Limits of Insurance; or (b) The Debris Removal expenses exceed the amount payable under the 25% limitation in subparagraph (b) (2) above; We will pay up to an additional $50,000 for each described premises in any one occurrence. This limit is in addition to any other applicable Limits of Insurance provided by this Coverage Form. c. Duplicate "Data" and "Media" (1) We will cover duplicate and back-up "data" and "media" which is: (a) Stored at premises other than the premises shown in the Coverage Declarations or on an attached schedule; and (b) Not covered under another policy. (2) The most we will. pay for "loss" to duplicate "data" and "media" in any one occurrence is $50,000. This Additional Coverage does not apply to property at any scheduled premises. This Additional Coverage is in addition to the applicable Limit of Insurance provided by the Computer Property Coverage Section. d. Additionally Acquired Computer "Hardware" (1) We will pay for direct physical "loss" caused by or resulting from any of the Covered Causes of Loss to additional computer "hardware" you acquire, if it is of a type already covered under the Computer Property Coverage Section. The most we will pay under this Additional Coverage for "loss" to computer "hardware" in any one occurrence is the lesser of the following amounts: (a) 20% of the Limit of Insurance for computer ,"hardware" at the premises with the highest Limit of Insurance shown in the Coverage Declarations or on an attached schedule as of the date of "loss"; or (b) $250,000. Page 3 of 13 PI=CIM-053 5-03 1. Coverages We provide coverage only under the Coverage Section or Sections for which a Limit of Insurance is shown in the Coverage Declarations. A. Computer Property Coverage Section 1. We will pay for direct physical "loss" to Covered Property caused by or resulting from any of the Covered Causes of Loss. Covered Property, as used in the Computer Property Coverage Section, means the following types of computer property for which a Limit of Insurance is shown in the Coverage Declarations. a. Computer hardware used in your business which you own or is property of others in your care, custody or control for which you are liable. ' b. Computer "data" and "media" used in your business which you own or is property of others in your care, custody or control. 2. We will cover the property while it is: a. At a premises shown in the Coverage Declarations or on an attached schedule; b. In transit; and c. Temporarily at other premises. 3. Additional Coverages Applicable to the Computer Property Coverage Section. a. Preservation of Property If it is necessary to move Covered Property from premises listed in the Coverage Declarations or on an attached schedule to preserve it from "loss" by any of the Covered Causes of Loss, we will pay for any direct physical "loss" to that property: (1) While it is being moved or while temporarily stored at another premises; but (2) Only if the "loss" occurs within 30 days after the property is first moved. The Limit of Insurance for Property in Transit or Temporarily at Other Premises does not apply to this Additional Coverage. This Additional Coverage does not increase the Limits of Insurance provided by this Coverage Form. b. Debris Removal (1) We will pay your expenses to remove debris of Covered Property at a premises listed in the Coverage Declarations or on an attached schedule caused by or. resulting from any of the Covered Causes of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date of the direct physical "loss". Page 2 of 13 . . -% SHERIFF'S RETURN - OUT OF COUNTY CASE NO: 2008-02066 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND AUTOMATIC BOWLING CENTRE INC VS PHILADELPHIA INDEMNITY INS CO R. Thomas Kline , Sheriff or Deputy Sheriff who being duly sworn according to law, says, that he made a diligent search and and inquiry for the within named DEFENDANT to wit: PHILADELPHIA INDEMNITY INSURANCE CO but was unable to locate Them in his bailiwick. He therefore deputized the sheriff of MONTGOMERY serve the within COMPLAINT & NOTICE County, Pennsylvania, to On April 24th , 2008 , this office was in receipt of the attached return from MONTGOMERY Sheriff's Costs: So answers- Docketing 18.00 -?' Out of County 9.00 Surcharge 10.00 R. Thomas Kline Dep Montgomery Co 33.00 Sheriff of Cumberland County Postage 4.10 74.10 ? q1Q P/of 04/24/2008 BRESSET & SANTORA Sworn and subscribe to before me this day of A. D. . . 1% In The Court of Common Pleas of Cumberland County, Pennsylvania Automatic Bowing Centre Inc d/b/a ABC West LAnes 6 tq 6 o Ca Ce 07? vs. 7 Philadlephia Indemnity Insurance Co. Now, April 8, 2008 , I, SHERIFF OF CUMBERLAND COUN'T'Y, PA, do hereby deputize the Sheriff of Montgomery County to execute this Writ, this deputation being made at the request and risk of the Plaintiff. Sheriff of Cumberland County, PA Please mail return of service to Cumberland County Sheriff. Thank you. Affidavit of Service Now, , 200 Z at 'D N o'clock AM. served the within upon at by handing to AP,111a o No. 08-2066 civil P Root acopy of the original 00,41 and made known to the contents thereof. So answers,, W, (5" UD U(/ Sheriff of County, PA Sworn and subscribed before me this day of , 20 LA COSTS SERVICE - MILEAGE _ AFFIDAVIT . , r .' IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY Automatic Bowling Center, Inc. ACTION OF BREACH OF CONTRACT Plaintiff vs. No. 2008-cv-02066 Philadelphia Indemnity Insurance Company Defendant ........................................................................................................................................... ........................................................................................................................................... CERTIFICATE OF SERVICE ........................................................................................................................................... ........................................................................................................................................... I, Angela Micinowski, do hereby certify that I have served a copy the Plaintiff's First Set of Interrogatories Propounded Upon Defendant, Philadelphia Indemnity Insurance Company and Request for Production of Documents in the above matter on the following: Guy Mercoliano, Esquire Sweeney & Sheehan 1515 Market Street 19'h Floor Philadelphia, PA 19102 by First Class Mail this 14`" day of May, 2008. n. _/7 rm__ - - ?,, An#la Micinowski, Secretary Bresset & Santora, LLC 606 Church Street Honesdale, PA 18431 C 4- 21 c ._ C.0 1 SWEENEY & SHEEHAN, P.C. By: Guy Mercogliano, Esquire Identification No.: 39766 1515 Market Street Suite 1900 Philadelphia, Pennsylvania 19102 (215) 563-9811 Fax: (215) 557-0999 TO: PLAINTIFF YOU ARE HEREBY NOTIFIED TO FILE A WRITTEN RESPONSE TO THE ENCLOSED NEW MATTER WITHIN TWENTY (20) DAYS FROM THE SERVICE HEREOF OR A JUDGMENT MAY BE ENTERED AGAINST At orney r: Defendan Philadelphia Indemnity Insurance Company AUTOMATIC BOWLING CENTER, INC., : d/b/a ABC West Lanes, Plaintiff, V. PHILADELPHIA INDEMNITY INSURANCE COMPANY, Defendant. COURT OF COMMON PLEAS OF CUMBERLAND COUNTY ACTION OF BREACH OF CONTRACT NO.: 2008-cv-02066 ANSWER AND NEW MATTER OF DEFENDANT, PHILADELPHIA INDEMNITY INSURANCE COMPANY COMES NOW, Defendant, Philadelphia Indemnity Insurance Company ("Answering Defendant), by its attorneys, Sweeney & Sheehan, and states as follows: PRELIMINARY AVERMENTS 1. Based upon information and belief, Plaintiff is a domestic business corporation with a place of business as stated. 2. Admitted in part; denied in part. Answering Defendant is PIIC, which does have a location as stated. 3. Admitted in part. It is admitted that Answering Defendant issued a Policy with Policy Period commencing on September 30, 2006, bearing No. PHPK193247. The Policy, being in writing, speaks for itself and any coverage thereunder is subject to all terms and conditions and limitations therein. Answering Defendant has insufficient knowledge at this time to either admit or deny that Exhibit "A" constitutes the full and complete Policy at issue. 4. Based on information and belief, it is admitted that a fire occurred on April 4, 2007, for which Plaintiff submitted a claim for loss. 5. The averments of this paragraph constitute conclusions of law to which no reply is required. To the extent a reply is required, it is admitted only that the Plaintiff submitted a claim for a loss as a result of fire. The extent for which coverage is provided is, in part, in dispute. 6. Admitted that the Plaintiff provided notice of loss to the Defendant. The remainder of the averments constitute conclusions of law to which no reply is required. 7. Denied as stated and admitted in part. It is admitted that Answering Defendant has made payment. It is denied that Answering Defendant refuses to make payment for loss owed pursuant to the terms of the Insurance Policy at issue or has otherwise wrongfully refused to make payment to Plaintiff. COUNTI BREACH OF CONTRACT 8. Answering Defendant incorporates by reference its reply set forth in paragraphs 1 through 7, above, as if fully set forth herein at length. 9. The averments of this paragraph constitute a conclusion to which no reply is required. To the extent a reply is required same are denied. 10. The averments of this paragraph constitute a conclusion to which no reply is required. To the extent a reply is required same are denied. 11. The averments of this paragraph constitute a conclusion to which no reply is required. To the extent a reply is required same are denied. WHEREFORE, Answering Defendant demands judgment in its favor and against Plaintiff together with counsel fees and cost of this action. COUNT II BAD FAITH 12. Answering Defendant incorporates by reference its reply set forth in paragraphs 1 through I 1 above, as if fully set forth herein at length. 13. The averments of this paragraph constitute a conclusion to which no reply is required. To the extent a reply is required same are denied. 14. The averments of this paragraph constitute a conclusion to which no reply is required. To the extent a reply is required same are denied. 15. Denied. By way of further answer, the averments of this paragraph constitute a conclusion of law, to which no reply is required. Moreover, Answering Defendant has not breached an obligation to adjust and/or play a claim owed. 16. Denied 17. Denied. WHEREFORE, Answering Defendant demands judgment in its favor and against Plaintiff together with counsel fees and cost of this action. NEW MATTER 18. Answering Defendant breached no obligation to Plaintiff. 19. Plaintiff's claim is barred and/or subject to all terms, conditions and limitations of the Policy under which claim has been made. 20. Plaintiff has a duty to mitigate damages, if any, and Plaintiff's failure to do so may bar and/or reduce any damages to which it may be entitled. 21. Plaintiff has failed to state a cause of action under 42 Pa. C.S.A. §8371. 22. To the extent cognizable at law and applicable, Answering Defendant reserves the right to raise that Plaintiffs cause of action is subject to, and may be reduced or affected because of Plaintiffs failure to fully discharge its obligation and duty. 23. Philadelphia Indemnity Insurance Company reserves the right to offer additional defenses, including defenses based upon the terms, conditions and exclusions of the policy upon further discovery and particularization of the claim or claims by Plaintiff or upon discovery of further information. SWEENEY & SHEEHAN By: AA- Guy Mercogliano Attorney for Defendant, Philadelphia Indemnity Insurance Company VERIFICATION GUY MERCOGLIANO states that he is an attorney-at-law in the offices of SWEENEY & SHEEHAN; that he is authorized to make this Verification; and states that with reference to averments and denials of fact contained in the ANSWER AND NEW MATTER OF DEFENDANT, PHILADELPHIA INDEMNITY INSURANCE, whether in whole or in part, are true to the best of his knowledge, information and belief. This statement is made subject to the penalties of 18 Pa. C.S. § 4904 relating to unsworn falsification to authorities. GUY MERCOGLIANO DATE: SWEENEY & SHEEHAN, P.C. By: Guy Mercogliano, Esquire Identification No.: 39766 1515 Market Street Suite 1900 Philadelphia, Pennsylvania 19102 (215) 563-9811 Fax: (215) 557-0999 Attorney for: Defendant, Philadelphia Indemnity Insurance Company AUTOMATIC BOWLING CENTER, INC., d/b/a ABC West Lanes, Plaintiff, V. PHILADELPHIA INDEMNITY INSURANCE COMPANY, Defendant. COURT OF COMMON PLEAS OF CUMBERLAND COUNTY ACTION OF BREACH OF CONTRACT NO.: 2008-cv-02066 CERTIFICATION OF SERVICE I hereby certify that service of the foregoing ANSWER AND NEW MATTER OF DEFENDANT, PHILADELPHIA INDEMNITYINSURANCE COMPANY, was made upon all interested counsel in the above matter by the United States First Class Mail on June 12, 2008. INTERESTED COUNSEL: Stephen G. Bresset, Esquire Bresset & Santora, LLC 606 Church Street Honesdale, Pennsylvania 18431 G 9Y MERCOGLIANO C ? F s ? T z SWEENEY & SHEEHAN, P.C. By: Guy Mercogliano, Esquire Identification No.: 39766 1515 Market Street Nineteenth Floor Philadelphia, PA 19102 (215) 563-9811 Attorney for: Defendant, Philadelphia Indemnity Insurance Company AUTOMATIC BOWLING CENTER, INC., : COURT OF COMMON PLEAS Plaintiff, OF CUMBERLAND COUNTY ACTION OF BREACH OF CONTRACT V. PHILADELPHIA INDEMNITY INSURANCE COMPANY, Defendant. NO.: 2008-cv-02066 ENTRY OF APPEARANCE AND DEMAND FOR JURY TRIAL TO THE PROTHONOTARY: Kindly enter my appearance on behalf of Defendant, Philadelphia Indemnity Insurance Company, in regard to the above-captioned matter. Defendant requests a jury at the time of trial of this matter. DATE: Guy ercogl ano Attorney for Defendant, Philadelphia Indemnity Insurance Company SWEENEY S EHAN By: M i PH-I112 ' ° C ? c ?.+ cx? -r? `? ?` ? ?, ?,. ?? : ..• c ??; ? ` , + ? t? N ? IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY Automatic Bowling Centre, Inc. ACTION OF BREACH OF CONTRACT d/b/a ABC West Lanes Plaintiff VS. No. 2008-cv-02066 Philadelphia Indemnity Insurance Co. Defendant ........................................................................................................................................... ........................................................................................................................................... MOTION TO COMPEL DISCOVERY .......................................................................................................................................... .......................................................................................................................................... Comes Now Automatic Bowling Centre, Inc. d/b/a ABC West Lanes, the Plaintiffs in the above proceeding by its Attorneys Bresset and Santora, LLC and states its motion as follows: 1. The Movant is Automatic Bowling Centre, Inc., the Plaintiff in the above proceeding. 2. That the Respondent is Philadelphia Insurance Companies, the Defendant in this action. 3. That this action was commenced by the filing of a complaint on April 1, 2008. 4. That the Defendant filed its answer pursuant to an agreement of extension of time. 5. That the Plaintiff has provided substantial discovery by voluntary disclosure to counsel for the Defendant which consists of virtually the entire filed of the Plaintiff related to this claim for insurance proceeds. 6. That on the 14" day of May, 2008, the Plaintiff served discovery requests on the Defendant. 7. That these discovery requests consisted of interrogatories and request for production of documents. Copies of these are attached hereto, made a part hereof and marked as Exhibit "A". That the information which is sought is essential to the preparation for trial. 9. That the permissible period for responses has expired and no responses have been received. 10. That efforts to secure responses have bee ignored by the Defendant. Copies of the correspondence addresses to counsel for the Defendant is attached hereto, made a part hereof and marked as Exhibit "B". Wherefore, the Plaintiff prays that the Defendant be compelled to provide complete responses to the discovery within ten (10) days. BRESSET & SANTORA, LLC by, p en G. Bre et, Esquire 606 Church Street Honesdale, PA 18431 570-253-5953 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY Automatic Bowling Center, Inc. ACTION OF BREACH OF CONTRACT Plaintiff : vs. No. 2008-cv-02066 Philadelphia Indemnity Insurance Company : Defendant .............................................................................................. PLAINTIFF'S FIRST SET OF INTERROGATORIES PROPOUNDED UPON DEFENDANT, PHILADELPHIA INDEMNITY INSURANCE COMPANY Comes Now Automatic Bowling Center, Inc. by its Attorneys Bresset and Santora, LLC and propounds the following Interrogatories to be answered under oath by the Defendant(s) within 30 days. DEFINITIONS 1. "Plaintiff' means Automatic Bowling Center, Inc. 2. "Defendant", "you" or "your" means Philadelphia Indemnity Insurance Company, Defendant, in the above captioned matter, and the past and present employees, representatives, agents and attorneys of Defendant Philadelphia Indemnity Insurance Company. 3. "Any", "each" and "all" shall be read to be all conclusive, and to require the production of each and every document (as hereinafter defined) responsive to the particular request for production in which such term appears. 4. "And" and "or" and any other conjunctions or disjunctions used herein shall be read both conjunctively and disjunctively so as to require the production of all documents (as hereinafter defined) responsive to all or any part of each particular request for production in which any conjunction or disjunction appears. 5. "Person" means an individual, firm, corporation, association, organization or any other entity. 6. The term "Document" includes all electronic media or other tangible forms in which information is stored and includes all written or graphic matter of every kind and description, however produced or reproduced, WHETHER IN DRAFT OR FINAL, original or reproduction, including, but not limited, to letters, correspondence, memoranda, notes, films, transcripts, contracts, agreements, invoices, licenses, memoranda of telephone conversations or personal conversations, microfilm, telegrams, books, newspaper articles, magazines, advertisements, periodicals, bulletins, circulars, pamphlets, statements, notices, reports, rules, regulations, directives, teletype messages, minutes of meetings, interoffice communications, reports, financial statements, ledgers, books of accounts, proposals, prospectuses, offers, orders, receipts, working papers, desk calenders, appointment books, diaries, time sheets, logs, movies, tapes for visual or audio reproduction, recordings or materials similar to any of the foregoing, however denominated, and including writings, drawings, graphs, charts, photographs, data processing results, printouts and compilations (both in existence and stored in memory components), and detection devices into reasonable usable form. THE TERM "DOCUMENT" INCLUDES ALL COPIES OF A DOCUMENT WHICH CONTAIN ANY ADDITIONAL WRITINGS, UNDERLINING, NOTES, DELETIONS, OR ANY OTHER MARKINGS OR NOTATIONS, OR ARE OTHERWISE NOT IDENTICAL COPIES OF THE ORIGINAL. INTERROGATORIES State the name of the defendant answering and, if different, state: The full name, address, employer, title and position of the individual signing the answers and any other person consulted in the preparation of their answer. ANSWER: 2. Identify each document used or relied upon by you in the preparation of your answers to these interrogatories by name, title and location of the document: (A) The name or title of each document; (B) The name, address, employer, title and position of each person having possession or custody of each such document; and ( Q Attach a copy of each such document to your answers to these interrogatories. ANSWER: 3. Has any Defendant, or any Attorney, agent or any person acting on any Defendant's behalf, obtained any statement from the Plaintiff? ANSWER: 4. Were there any photographs or videos taken of the structure taken at anytime and if so provide the location of same and the date they were taken. ANSWER: 5. Identify by name, address and position all persons who have any information relevant to this litigation. ANSWER: 6. Identify all persons by name, address and position who you may or will call as witnesses at trial and provide a summary of their testimony which is expected at trial. ANSWER: 7. Identify each document that you expect to introduce at trial which is relevant in any manner to this litigation. ANSWER: 8. Describe in detail any investigation you conducted or will conduct in the preparation of your answer to the complaint or in regard to this claim and the adjustment of the claim submitted by Automatic Bowling Centers, Inc. and the person conduction such investigation and the results of same. ANSWER: 9. Identify each document reviewed or generated in your investigation identified in the foregoing interrogatory. ANSWER: 10. State in detail the basis for your statement set forth in your answer and the sources you have used to make that statement and identify by name, address and present occupation of each person you intend to call as a witness to support this averment, the custodian of same and the present whereabouts of such documents. ANSWER: BRESSET & SAS LLC by Stephen G. , IE 606 Ch es Honesd 18431 570-253-5953 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY Automatic Bowling Center, Inc. ACTION OF BREACH OF CONTRACT Plaintiff VS. No. 2008-cv-02066 Philadelphia Indemnity Insurance Company Defendant .............................................................................. . REQUEST FOR PRODUCTION OF DOCUMENTS TO: Defendant, Philadelphia Indemnity Insurance Company INSTRUCTIONS FOR USE 1. In producing the documents designated below, you are requested to furnish all documents known or available to you regardless of whether a document is currently in your possession, custody, or control, or that any of your attorneys, employees, agents, investigators, or other representatives, or is otherwise available to you. 2. If, for any reason, your are unable to produce in full any document requested: a. Produce each such document to the fullest extent possible; b. Specify the reason for your inability to produce the remainder; and c. State in detail whatever information, knowledge, or belief you have concerning the whereabouts and substance of each document not produced in full. 3. If any document requested was at one time in existence, but is no longer in existence, please state for each document as to which that is the case: a. The type of document; b. The types of information contained therein; c. The date upon which it ceased to exist; d. The circumstances under which it ceased to exist; e. The identity of all persons having knowledge of the circumstances under it ceased to exist; and f. The identity of all persons having knowledge or who had knowledge of the contents thereof. 4. For each document requested which you are unable to produce and which was at any time within your possession, custody or control, or to which you had access at any time, specify in detail: a. The nature of the document (i.e., letter, memorandum, etc.); b. The author of the document; c. All recipients of the document and any copy thereof, d. A summary of the information contained in the document; e. The date on which you lost, relinquished, or otherwise ceased to have possession, custody, control of, or access to the document; f. Identify all persons having knowledge of the circumstances whereby you lost, relinquished, or otherwise ceased to have possession, custody, or control of , or access to the document; and g. Identify all persons who have or have had knowledge of the contents of the document, in full or in part. 5. In the event you seek to withhold or do withhold any document, in whole or in part, on the basis that it is not subject to discovery, produce a list of all such documents and, as to each such document, state: a. The name of each author, writer, sender or initiator of each such document; b. The name of each recipient, addressee or party to whom such document was sent or intended to be sent; c. The name of each and every person who received a copy of the document; d. The date of the document or, if no date appears on the document, the date the document was prepared; e. The title of the document, or if it had no title, then such other description of the document and its subject matter as shall be sufficient to identify the document; and £ The grounds claimed for withholding the document from discovery (e.g. attorney-client privilege, work product, or any other ground, and the factual basis for such a claim. 6. In accordance with the Pa. R. C. P., as to each document produced, you are requested to designate the paragraph and subparagraph of this request to which each such document is responsive. 7. If you dispute the propriety of Instruction 2, 3, 4, and/or 5, supra, as being outside the scope of the Rule Pa. R. C. P. or otherwise objectionable, then consider such instructions as interrogatories posed pursuant to Pa. R. C. P. and answer them accordingly. 8. This Request is a continuing one, and requires that you produce all responsive documents and tangible objects whenever you obtain or become aware of them, even if they are not in your possession or available to you on the date you first produce documents pursuant to this Request. Esquire LLC ID #'9W4 606 Church St. Honesdale, PA 18431 (570) 253-5953 DEFINITIONS "Plaintiffs" mean Automatic Bowling Center, Inc. 2. "Defendant' 'you" or "your" means Philadelphia Indemnity Insurance Company. 3. "Any", "each" and "all" shall be read to be all inclusive, and to require the production of each and every document (as hereinafter defined) responsive to the particular request for production in which such terms appears. 4. "And" and "or" and any other conjunctions or disjunctions used herein shall be read both conjunctively and disjunctively so as to require the production of all documents (as hereinafter defined) responsive to all or any part of each particular request for production in which any conjunction or disjunction appears. "Person" means an individual, firm, corporation, association, organization or any other entity. 6. The term "document" includes all electronic media or other tangible forms in which information is stored and includes all written or graphic matter of every kind and description, however produced or reproduced, WHETHER DRAFT OR FINAL, original or reproduction, including, but not limited to, letters, correspondence, memoranda, notes, films, transcripts, contracts, agreements, invoices, licenses, memoranda of telephone conversations or personal conversations, microfilm, telegrams, books, newspaper articles, magazines, advertisements, periodicals, bulletins, circulars, pamphlets, statements, notices, reports, rules, regulations, directives, teletype messages, minutes of meetings, interoffice communications, reports, financial statements, ledgers, books of account, proposals, perspectives, offers, orders, receipts, working papers, desk calendars, appointment books, diaries, time sheets, logs, movies, tapes for visual or audio reproduction, recordings or materials similar to any of the foregoing, however denominated, and including writings, drawings, graphs, charts, photographs, data processing results, printouts and communications (both in existence and stored in memory components), and other compilations from which information can be obtained or translated, if necessary, through detection devices into reasonably usable form. THE TERM "DOCUMENT" INCLUDES ALL COPIES OF A DOCUMENT WHICH CONTAIN ANY ADDITIONAL WRITING, UNDERLYING, NOTES, DELETIONS, OR ANY OTHER MARKINGS OR NOTATIONS, OR ARE OTHERWISE NOT IDENTICAL COPIES OF THE ORIGINAL. DOCUMENTS TO BE PRODUCED 1. Copies of all documents relied upon or referred to in preparation of your answer to the complaint. 2. Copies of all investigative files which relate to any claim, inciting but not united to the subject claim made against your company which arises from a fire on April 4, 2007. 3. All damage estimates which you have received from any source as to the losses from the subject fire and resulting loss. 4. All photographs of the subject premises. 5. All internal documents prepared or reviewed by you in your evaluation of this claim. 6. All documents which you reviewed or relied on in your evaluation of this claim. 7. All documents you intend to rely on at trial. All documents which were prepared or reviewed by you regarding the issues raised in this complaint and cause of action. Stete B , Esquir Bre ora, LLC ID 606 Church St. Honesdale, PA 18431 (570) 253-5953 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY Automatic Bowling Center, Inc. ACTION OF BREACH OF CONTRACT Plaintiff VS. No. 2008-cv-02066 Philadelphia Indemnity Insurance Company Defendant ........................................................................................................................................... ........................................................................................................................................... CERTIFICATE OF SERVICE ........................................................................................................................................... ........................................................................................................................................... I, Angela Micinowski, do hereby certify that I have served a copy the Plaintiff's First Set of Interrogatories Propounded Upon Defendant, Philadelphia Indemnity Insurance Company and Request for Production of Documents in the above matter on the following: Guy Mercoliano, Esquire Sweeney & Sheehan 1515 Market Street 19°i Floor Philadelphia, PA 19102 by First Class Mail this 14th day of May, 2008. :A:Z? An ' wski, Secretary Bre Aie antora, LLC 606 Street Honesdale, PA 18431 BRESSET & SANTORA, LLC Attorneys At Law 606 CHURCH STREET HONESDALE, PA 18431 PHONE (570) 253-5953 FAX (570) 253-2926 Stephen G. Bresset, Esquire 701 Main Street, Suite 400 Stroudsburg, PA 18360 Phone (570) 476-3240 Fax(570)476-3243 Please reply to Honesdale July 3, 2008 VIA EMAIL Guy Mercoliano, Esquire Sweeney & Sheehan 1515 Market Street 19th Floor Philadelphia, PA 19102 Re: Automatic Bowling Centre, Inc. v. Philadelphia Indemnity Insurance Dear Mr. Mercogliano: Ronald V. Santora, 'squire 1 188 Wyomin ; Avenue Forty Fort, PA 18704 Phone (570) :187-3660 Fax (570) :1.87-3666 In reference to the above matter please advise as to when your client will provide responses to the outstanding discovery requests. Thank you for your consideration in this regard. Very truly s, . BRESSET, ESQUIRE cc Gary Bower 3 ? r° ? ^n _ ? ' -?, i "t ___ "?.5'?..? ?p r'} ? _, ??,? J ._ l"t IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY Automatic Bowling Center, Inc. ACTION OF BREACH OF CONTRACT Plaintiff VS. No. 2008-cv-02066 Philadelphia Indemnity Insurance Company Defendant ........................................... ........................................... CERTIFICATE OF SERVICE I, Angela Micinowski, do hereby certify that I have served a copy the Motion to Compel Discovery in the above matter on the following: Guy Mercoliano, Esquire Sweeney & Sheehan 1515 Market Street 19`h Floor Philadelphia, PA 19102 by First Class Mail this 14`h day of July, 2008. AngQ Micinowski, Secretary Bresset & Santora, LLC 606 Church Street Honesdale, PA 18431 r-n W AUTOMATIC rOWLING CENTER, INC., PLAINTIFF V. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PHILADELPHIA INDEMNITY INSURANCE CO.,: DEFENDANT : NO. 08-2066 CIVIL ORDER OF COURT AND NOW, this 22nd day of July, 2008, upon consideration of Plaintiff's Motion to Compel Discovery, IT IS (HEREBY ORDERED AND DIRECTED that the Plaintiff's Motion to Compel Discovery is GRANTED. The Defendant shall file answers to the Plaintiff's Injerrogatories and produce the documents requested by the Plaintiff in its Request for Productions of Documents on or before August 15, 2008. By the Court, ?N, -?- 4 M. L. Ebert, Jr., J. tephen G. resset, Esquire Attorney for Plaintiff Ouly Mercoli no, Esquire Attorney for Defendant bas . 1 •, r s fib'} i r; P, I ? , SO :9 V U Illi HE :. :'H C) SWEENEY & SHEEHAN, P.C. By: Guy Mercogliano, Esquire Identification No.: 39766 1515 Market Street Nineteenth Floor Philadelphia, PA 19102 (215) 563-9811 Attorney for: Defendant, Philadelphia Indemnity Insurance Company AUTOMATIC BOWLING CENTER, INC., : d/b/a ABC West Lanes, Plaintiff, : V. PHILADELPHIA INDEMNITY INSURANCE COMPANY, Defendant. COURT OF COMMON PLEAS OF CUMBERLAND COUNTY ACTION OF BREACH OF CONTRACT NO.: 2008-cv-02066 CERTIFICATE PREREQUISITE TO SERVICE OF A SUBPOENA PURSUANT TO RULE 4009.22 As a prerequisite to service of a Subpoena for documents and things pursuant to Rule 4009.22, Defendant certifies that: (1) A Notice of Intent to serve the Subpoena with a copy of the Subpoena attached thereto was mailed or delivered to each party, on August 18, 2008, at least twenty days prior to the date on which the Subpoena is sought to be served; (2) A copy of the Notice of Intent, including the proposed Subpoena, is attached to this Certificate; (3) No objection to the Subpoena has been received; and, (4) The Subpoena which will be served is identical to the Subpoena which is attached to the Notice of Intent to serve the Subpoena. DATE: AUGUST 26, 2008 SWEENEY & SHEEHAN v By: Guy Mercogliano Attorney for Defendant, Philadelphia Indemnity Insurance Company COUNSEL HAS AGREED TO WAIVE THE 20 DAYS SO THAT WE MAY IMMEDIATELY SERVE THE SUBPOENA. SWEENEY & SHEEHAN, P.C. By: Guy Mercogliano, Esquire Identification No.: 39766 1515 Market Street Nineteenth Floor Philadelphia, PA 19102 (215) 563-9811 Attorney for: Defendant, Philadelphia Indemnity Insurance Company AUTOMATIC BOWLING CENTER, INC., : d/b/a ABC West Lanes, Plaintiff, V. PHILADELPHIA INDEMNITY INSURANCE COMPANY, Defendant. COURT OF COMMON PLEAS OF CUMBERLAND COUNTY ACTION OF BREACH OF CONTRACT NO.: 2008-cv-02066 NOTICE OF INTENT TO SERVE A SUBPOENA TO PRODUCE DOCUMENTS AND THINGS FOR DISCOVERY PURSUANT TO RULE 4009.21 TO: Stephen G. Bresset, Esquire Bresset & Santora, LLC 606 Church Street Honesdale, Pennsylvania 18431 DATE: August 18, 2008 Defendant, Philadelphia Indemnity Insurance Company, intends to serve a Subpoena identical to the one that is attached to this notice. You have twenty (20) days from the date listed above in which to file of record and serve upon the undersigned an objection to the Subpoena. If no objection is made, the Subpoena may be served. SWEENEY & SHEEHAN By: Guy ercogliano Attorney for Defendant, Philadelphia Indemnity Insurance Company COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND Automatic Bowling Center, Inc. File No. 2008-CV-02066 V. Philadelphia Indemnity Insurance Company SUBPOENA TO PRODUCE DOCUMENTS OR THINGS FOR DISCOVERY PURSUANT TO RULE 4009.22 TO: Wells Fargo Ins.Co., 4900 Ritter Rd., Ste 250, Mechanicsburg, PA 17055 (Name of Person or Entity) Within twenty (20) days after service of this subpoena, you are ordered by the court to produce the following documents or things: SEE ATTACHED at Sweeney & Sheehan, P.C., 1515 Market St., 19th Fl., Phila PA 19102 (Address) You may deliver or mail legible copies of the documents or produce things requested by this subpoena, together with the certificate of compliance, to the party making this request at the address listed above. You have the right to seek in advance the reasonable cost of preparing the copies or producing the things sought. If you fail to produce the documents or things required by this subpoena within twenty (20) days after its service, the party serving this subpoena may seek a court order compelling you to comply with it. THIS SUBPOENA WAS ISSUED AT THE REQUEST OF THE FOLLOWING PERSON: NAME: Guy Mercogliano, Esquire ADDRESS: 1515 Market Street 19th loo Phila.. PA 191.02 TELEPHONE: (215) 563-9811 SUPREME COURT ID # 39766 ATTORNEY FOR: Defendant. Philadelphia Indemnity Insurance BY THE COURT: Company Prothonotary, Civil Division Date: 'Seal of the Court Deputy DOCUMENTS TO BE PRODUCED 1. Any and all documents including correspondence, memos, phone messages and notes pertaining to Philadelphia Insurance Company's issuance of Policy Number PHPK193247 to Automatic Bowling Center, Inc. 2. Any and all documents including correspondence, memos, phone messages and notes pertaining to requesting and obtaining Property Enhancement Endorsement PI-PEE-001, including the Ordinance or Law coverage. 3. Any and all documents including correspondence, memos, phone messages and notes pertaining to the scope, nature and extent of coverage available pursuant to Ordinance or Law limits pursuant to the Property Enhancement Endorsement, PI- PEE-001. 4. Any communications by and between Wells Fargo and Automatic Bowling Center, Inc., its employees, agents or representatives concerning the scope, nature and extent of coverage provided by th Ordinance or Law coverage pursuant to the Property Enhancement Endorsement, PI-PEE-001. 5. All documents including Automatic Bowling Center, Inc.'s application for property coverage for the premises damaged by fire covered pursuant to Policy PHPK193247 including, but not limited to, the Property Enhancement Endorsement. 4"', r>,a ?' ra C3 •: ? ?'J r' '?7 ? ?? :: ,,? ., . .. ?.i: -- t,s 7 t P°?i ;. IN THE COURT OF COMMON PLEA OF CUMBERLAND COUNTY Automatic Bowling Center, Inc. ACTION OF BREACH OF CONTRACT Plaintiff vs. No. 2608-cv-02066 Philadelphia Indemnity Insurance Company Defendant ........................................................ CERTIFICATE OF SERVICE I, Angela Micinowski, do hereby certify that I have served the original Answers to Defendant's Interrogatories in the above matter on the following: Guy Mercoliano, Esquire Sweeney & Sheehan 1515 Market Street 19`h Floor Philadelphia, PA 19102 by First Class Mail this 15`h day of October, 2008. AVla icinowski, Secretary Bresset Santora, LLC 606 Chch Street Honesd le, PA 18431 CIO i? i7? IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY Automatic Bowling Center, Inc. ACTION OF BREACH OF CONTRACT Plaintiff vs. No. 2008-cv-02066 Philadelphia Indemnity Insurance Company Defendant ........................................................................................................................................... ........................................................................................................................................... CERTIFICATE OF SERVICE ........................................................................................................................................... ........................................................................................................................................... I, Angela Micinowski, do hereby certify that I have served a copy of Supplemental Responses to Request for Document Production in the above matter on the following: Guy Mercoliano, Esquire Sweeney & Sheehan 1515 Market Street 19'x' Floor Philad,, lphia, PA 19102 by First Class Mail this 5" day of December, 2008. ela Micinowski, Secretary Bresset & Santora, LLC 606 Church Street Honesdale, PA 18431 OZ. rrn co C.. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY Automatic Bowling Centre, Inc. ACTION OF BREACH OF CONTRACT Plaintiff vs. No. 2008-cv-02066 Philadelphia Indemnity Insurance Company : Defendant ................................................................. CERTIFICATE OF SERVICE I, Angela Micinowski, do hereby certify that I have served the original Request for Admissions in the above matter on the following: Guy Mercoliano, Esquire Sweeney & Sheehan 1515 Market Street 19th Floor Philadelphia, PA 19102 by First Class Mail this 12t' day of January, 2009. la Micinowski, Secretary Bresset & Santora, LLC 606 Church Street Honesdale, PA 18431 M1 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY Automatic Bowling Centre, Inc. ACTION OF BREACH OF CONTRACT Plaintiff VS. No. 2008-cv-02066 Philadelphia Indemnity Insurance Company Defendant ..................................................... CERTIFICATE OF SERVICE 1, Angela Micinowski, do hereby certify that I have served a copy of the Certification in the above matter on the following: Guy Mercoliano, Esquire Sweeney & Sheehan 1515 Market Street 19`h Floor Philadelphia, PA 19102 by First Class Mail this 2"d day of July, 2009. 04A'nl ?aMcinowski, Secretary Bresset & Santora, LLC 606 Church Street Honesdale, PA 18431 OF THE IDTARY 2069 JUL -b Pil i : 5 i PENNSYLV ,IMA IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY Automatic Bowling Centre, Inc. ACTION OF BREACH OF CONTRACT Plaintiff vs. No. 2008-cv-02066 Philadelphia Indemnity Insurance Company Defendant ........................................................................................................................................... ........................................................................................................................................... CERTIFICATION ........................................................................................................................................... ........................................................................................................................................... I, Stephen G. Bresset, Esquire, attorney for the Plaintiff in the above captioned matter do certify that on the 12`' day of January, 2009, I served requests for admission s on Guy Mercogliano, Esquire, counsel for the Defendant. That the response to same was due, after extension, to be filed on or about the 30' day of June, 2009. That as of this date no response to said requests have been received and all matters in said requests are deemed admitted. tted, DATE: July 1, 2009 Ste en G. Bresset,-Esq 01 P esset & Santora, LLC 606 Church Street Honesdale, PA 18431 (570) 253-5953 R LEO Cu', :4! ?,CE 2009 JUL -6 Ph !'. 52 CUMz_4. 1w1 F?rh1;?' IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY Automatic Bowling Centre, Inc. ACTION OF BREACH OF CONTRACT d/b/a ABC West Lanes Plaintiff VS. No. 2008-cv-02066 Philadelphia Indemnity Insurance Co. Defendant PRAECIPE TO SETTLE AND DISCONTINUE MATTER WITH PREJUDICE TO THE PROTHONOTARY: Kindly discontinue the above matter with prejudice and mark same settled and satisfied. BRESSET & SANTiORA, LLC by, Stephen G. Bresset, Esquire 606 Church Street Honesdale, PA 18431 570-253-5953 - i ' r IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY Automatic Bowling Centre, Inc Plaintiff VS. Philadelphia Indemnity Insurance Company Defendant ACTION OF BREACH OF CONTRACT No. 2008-cv-02066 ............... . CERTIFICATE OF SERVICE I, Angela Micinowski, do hereby certify that I have served a copy of the Praecipe to Settle and Discontinue Matter in the above matter on the following: Guy Mercoliano, Esquire Sweeney & Sheehan 1515 Market Street 19" Floor Philadelphia, PA 19102 by First Class Mail this 29`h day of October, 2009. 4Ala Micinowski, Secretary Bresset & Santora, LLC 606 Church Street Honesdale, PA 18431 WLED-C)F CE OF THE PRk TT-`C Nn-Ta9Y 2009 NOV -2 Ph 1: 2 7 PENNSYLVANIA.