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t ??11?ri1•€aHO ?i??. THOMAS, THOMAS & HAFER, LLP Kevin C. McNamara, Esquire Identification Number: 72668 P.O. Box 999 Harrisburg, PA 17108-0999 717/237-7132 Attorneys for Plaintiff MMG INSURANCE COMPANY 44 Maysville Street Presque Isle, ME 04769-07209, Plaintiff v. BRIAN M. DORSEY, P. ROGER STIVAL, JR. and JUDY BEITZEL-STIVAL, Defendants [R, 12 MAR -8 PM 12• 5. 7 CUMBERLAND COUNTY PENNSYLVANIA IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. Ajd-):56I oiyil JURY TRIAL DEMANDED NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Notice and Complaint are served, by entering a written appearance personally or by attorney and filing in writing with this Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiffs. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET HELP. Cumberland County Bar Association 32 S. Belford Street Carlisle, PA 17013 Telephone (717) 249-3166 0-?? CtO 103 7.5?d 4- o) -7 9 1 b6 THOMAS, THOMAS & HAFER, LLP Kevin C. McNamara, Esquire Identification Number: 72668 P.O. Box 999 Harrisburg, PA 17108-0999 717/237-7132 Attorneys for Plaintiff MMG INSURANCE COMPANY 44 Maysville Street Presque Isle, ME 04769-07209, Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA V. BRIAN M. DORSEY, P. ROGER STIVAL, JR. and JUDY BEITZEL-STIVAL, Defendants NO. JURY TRIAL DEMANDED COMPLAINT FOR DECLARATORY JUDGMENT AND NOW, MMG Insurance Company, by its attorneys, Thomas, Thomas & Hafer, LLP, brings the following Complaint for Declaratory Judgment: 1. MMG Insurance Company is a property/casualty insurance company licensed to do business in Pennsylvania with its principal place of business at 44 Maysville Street, Presque Isle, ME 04769-0729. 2. Brian M. Dorsey (hereinafter "Dorsey") is an adult individual who resides at 61 Lenwood Park, Shippensburg, Pennsylvania 17257. 3. P. Roger Stival, Jr. and Judy Beitzel-Stival are adult individuals who reside at 1000 Highfield Court, Mechanicsburg, Pennsylvania 17055. 4. MMG issued a Special Trade Contractors Policy to Brian M. Dorsey under Policy No. SC10975677 with effective dates September 15, 2010, through September 15, 2013. A copy of the policy is attached hereto and marked Exhibit A. 5. Mr. Dorsey is a Defendant in a pending action (the "underlying action") filed in the Court of Common Pleas of Cumberland County at Docket No. 11-8915 Civil Term which is captioned P. Roger Stival, Jr. and Judy Beitzel-Stival v. Brian Dorsey, t/d/b/a Dorsey Construction. A copy of the Complaint filed therein is attached hereto and marked Exhibit B. 6. In the underlying action, the Plaintiffs contend that they entered into a series of construction contracts with Dorsey and that Dorsey breached some of the contractual obligations, failed to perform other contractual obligations in a workmanlike fashion, and failed to commence two of the contracts. It is further alleged in the underlying action that Dorsey's conduct violated Pennsylvania Consumer Protection Statutes. 7. Mr. Dorsey has asked MMG to provide coverage under the Special Trade Contractors Policy for the claims asserted in the underlying action. 8. A controversy exists between the parties concerning their respective rights and liabilities under MMG's Policy. 9. The allegations in the underlying Complaint amount to claims that Dorsey breached the series of construction contracts with the Stivals. Breaches of contract do not constitute "occurrences" under the MMG Policy. 10. The claims in Counts I, II, III and VI of the underlying Complaint do not set forth any covered "occurrences" under the MMG Policy. 11. The claims in Counts IV and V allege that Dorsey failed to commence performance of the contracts for kitchen and bathroom remodeling. The allegations in these Counts fail to assert a covered "occurrence" or "property damage" as those terms are defined in the Policy. 1050612.1 2 12. There is no coverage for the claims set forth in Counts VII and VIII as these Counts fail to set forth covered "occurrences" and fail to allege any "property damage" as those terms are defined in the policy. 13. Further, there is no coverage for the claims set forth in Counts VII and VIII of the Complaint as these claims are based on breaches of contract, unworkmanlike performance of contractual duties and/or shortcomings in the contract documents themselves. WHEREFORE, Plaintiff MMG Insurance Company requests declaratory judgment finding that it has no duty to cover, insure, defend or indemnify Brian M. Dorsey in regard to the underlying action or any claims relating to the series of contractual agreements referenced in the underlying action. Respectfully submitted, THOMAS, THOMAS & HAFER, LLP By: C- VV Kevin C. McNamara, Esquire I.D.#72668 305 North Front Street P.O. Box 999 Harrisburg, PA 17108-0999 DATE: 3 (717) 237-7132 1050612.1 3 VERIFICATION I, u n p state that I am an authorized representative of MMG Insurance that I make this Verification on behalf of MMG Insurance, and that I am familiar with the facts set forth in the foregoing document. I have read the foregoing document and hereby affirm that it is true and correct to the best of my personal knowledge, information and belief. This Verification is made pursuant to 18 Pa.C.S. § 4904 relating to unsworn falsification to authorities. MMG INSURANCE COMPANY DATE: ?) - d I - 0 (-)l -?-- \??? J `\^??J JV ?J Printed from Imaging on 02/10/2012 at 4:29 PM; Document Type: DP; Scan Date: 02/08/2012; Print Page: (1] M MMG INSURANCE COMPANY 44 Maysville Road Presque Isle, Maine 04769 SPECIAL TRADE CONTRACTORS POLICY Policy No. SC"_0975677 DECLARATIONS Policy Type Policy Period (3 YEAR) Direct Bill AMENDED EFFECTIVE 9/15//20'-0 To 9/15/2013 12:01 A.M. Eastern Standard Time 2/01/2012 Named Insured 0504733 DORSEY CONSTRUCTION LLC 61 LENWOOD PARK: SHIPPENSBURG PA 17257-8819 Agent C02 37 717-652-4902 ENDERS INSURANCE ASSOCIATES 5912 LINGLESTOWN RD PO BOX 6118 HARRISBURG PA 17112-0118 SUMMARY OF INSURED LOCATIONS Loc. 01: 61 LENWOOD PARK SHIPPENSBURG, PA 17257-8819 Payroll amount: $10,400 8% Annual Inflation Guard OPTIONAL COVERAGES CONTRACTORS VALU-PAK Business Personal Property Computer Coverage Water Back-up and Sump Overflow Blanket Contractors Tools & Equipment Scheduled Tools & Equipment Non-Owned Tools & Equipment Employees Tools Installation Coverage Identity Recovery Coverage Broad Form Property Damage Theft of Covered Property $214 $115 BP0003 (07- 02) "See Locations" BP0003 (07- 02) $5,000 INCL BP0453 (08- 08) $10,000 INCL BP0701 (08- 08) $15,000 $176 BP0701 (08- 08) $8,000 $106 BP0701 (08- 08) $5,000 INCL BP0701 (08- 08) $2,500 INCL BP0701 (08- 08) $5,000 INCL MMGIDR (02- 09) $15,000 INCL ST0002 (05- 06) $25,000 INCL ST0003 (05- 06) INCL Total Annual Policy Premium $611 Direct Bill * Changed Irsured's Name Terrorism Risk Insurance Act Authorized Representative Produced on: 2/08/2012 Premium: $0 NO COUNTERSIGNATURE REQUIRED This is a nonparticipating policy and no dividends are paid to policyholders Printed from Imaging on 02/10/2012 at 4:29 PM; Document Type: DP; Scan Date: 02/08/2012; Print Page: [2] MMG INSURANCE COMPANY 44 Maysville Road Presque Isle, Maine 04769 SPECIAL TRADE CONTRACTORS POLICY Policy No. SCIC975677 DECLARATIONS Policy Type Policy Period (3 YEAR) Direct Bill AMENDED EFFECTIVE 9/15/201C To 9/15/2013 12:01 A.M. Eastern Standard Time 2/01/2012 Named Insured 0504733 Ager_t 002 37 717-652-4902 DORSEY CONSTRUCTION LLC ENDERS INSURANCE ASSOCIATES 61 LENWOOD PARK 5912 LINGLESTOWN RD PC BOX 6118 SHIPPENSBURG PA 17257-8819 HARRISBURG PA 17112-0118 loc. 01: 61 LENWOOD PARK SHIPPENSBURG, PA 17257-8819 Description: Carpentry/Res. (Not Roofing Contractor) PROPERTY DEDUCTIBLE $500 Buildings Coverage Business Personal Property $5,000 Loss of Income Actual Loss Sustained, Not Exceeding 12 Consecutive Months BUSINESS LIABILITY COVERAGES Business Liability Each Occurrence $1,000,000 Damage to Premises Rented to Yoa Each Occurrence $250,000 Medical Payments "Each Person" $5,000 Premium N/A INCL INCL $214 INC:L INCL OPTIONAL COVERAGES & COVERAGE EXTENSIONS Accounts Receivable Valuable Pavers $10, 000 $10,000 INCL INCL Annual Policy Premium $214 Direct Bill PRODUCED ON: 2/08/2012 Printed from Imaging on 02/10/2012 at 4:29 PM; Document Type: DP; Scan Date: 02/08/2012; Print Page: [3] WL AN MMG INSURANCE COMPANY 44 Maysville Road Presque Isle, Maine 04769 SPECIAL TRADE CONTRACTORS POLICY Policy No. SC10975677 DECLARATIONS Pclicy Type Policy Period (3 YEAR) Direct Bill AMENDED EFFECTIVE 9/15/2010 To 9/15/2013 12:01 A.M. Eastern Standard Time 2/01/2012 Named Insured 0504733 DORSEY CONSTRUCTION LLC 61 LENWOOD PARK SHIPPENSBURG PA 17257-8819 Agent 002 37 717-652-4902 ENDERS INSURANCE ASSOCIATES 5912 LINGLESTOWN RD PC BOX 6118 HARRISBURG PA 17112-0118 SCHEDULE OF ENDORSEMENT ADDITIONAL INFORMATION B20701 (08--08) Contractors' Installation, Tools and Equipment Coverage B-ANKET BASIS LIMITS CF INSURANCE $15,000 SCHEDULED BASIS 7x16 Enclosed Carryon Trailer DESCRIPTION OF ITEM LIMITS OF INSURANCE $8, 000 PRODUCED ON: 2/08/2012 Printed from Imaging on 02/10/2012 at 4:29 PM; Document Type: DP; Scan Date: 02/08/2012; Print Page: [4] MMG INSURANCE COMPANY 44 Maysville Road Presque Isle, Maine 04769 SPECIAL TRADE CONTRACTORS POLICY Policy No. SC10975677 DECLARATIONS Policy Type Policy Period (3 YEAR) Direct Bill AMENDED EFFECTIVE 9/15/2010 To 9/15/2013 12:01 A.M. Eastern Standard Time 21/01/2012 Named Insured 0504733 DORSEY CONSTRUCTION LLC 61 LENWOOD PARK SHIPPENSBURG PA 17257-8819 Agent 002 37 717-652-4902 ENDERS INSURANCE ASSOCIATES 5912 LINGLESTOWN RD PC BOX 6118 HARRISBURG PA 17112-0118 MMG SPECIAL TRADE CONTRACTORS POLICY FORMS LIST POLICY FORMS AA 00 13 12 07 BP 00 03 07 02 BP 01 42 07 02 BP 01 59 08 08 BP 01 91 07 02 BP 04 17 07 02 BP 04 53 08 08 BP 04 83 07 02 BP 05 14 01 03 BP 05 23 01 08 BP 05 35 11 02 BP 05 39 12 02 BP 05 64 01 07 BP 05 65 01 07 BP 05 76 11 02 BP 05 77 11 02 BP 06 01 01 07 BP 07 01 08 08 BP 2000 08 1.0 IL N 088 09 03 MMG IDR 02 09 MM063 06 10 S70002 05 06 ST0003 05 06 ZMHC 01 PA 11 FORM TITLES Policyholder Disclosure Terrorism Insurance Coverage Act Businessowners Coverage Form Pennsylvania Changes Water Exclusion Endorsement Pennsylvania Notice Employment-Related Practices Exclusion Water Back-up and Sump Overflow Removal of Insurance-To-Value Provision War Liability Exclusion Cap on Losses From Certified Acts of Terrorism Exclusion of Acts of Biological or Chemical Terrorism; Cap on Losses from Certified Acts of Terrorism; Coverage for Certain Fire Losses Nuclear, Biological or Chemical Terrorism Exclusion (Other than Certified Acts of Terrorism); Cap on Losses from Certified Acts of Terrorism Conditional Exclusion of Terrorism (Relating to Disposition of Federal Terrorism Risk Insurance Act) Conditional Exclusion of Terrorism Involving Nuclear, Biological or Chemical Terrorism (Relating to Disposition of Federal Terrorism Risk Insurance Act) Limited Fungi or Bacteria Coverage Fungi or Bacteria Exclusion (Liability) Exclusion of Loss Due to Virus or Bacteria Contractors' Installation, Tools and Equipment Coverage Definition of Occurrence Pennsylvania Fraud Statement Identity Recovery Coverage Exclusion - Lead Liability Extended Broad Form Property Damage Liability Theft of Covered Property from any Unattended Vehicle 06 Annual Meeting Notice PRODUCED ON: 2/08/2012 AA 00 13 12 2007 POLICYHOLDER DISCLOSURE TERRORISM INSURANCE COVERAGE ACT Coverage for acts of terrorism is included in your policy. You are hereby notified that under the Terrorism Risk Insurance Act, as amended in 2007, the definition of act of terrorism has changed. As defined in Section 102 (1) of the Act: The term "act of terrorism" means any act that is certified 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; to be a violent act or an act that is dangerous to human life, property, or infrastructure; to have resulted in damage within the United States, or outside the United Sates in the case of certain air carriers or vessels or the premises of a United States mission; and to have been committed by an individual or individuals 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. Under your coverage, any losses resulting from certified acts of terrorism may be partially reimbursed by the United States Government under a formula established by the Terrorism Risk Insurance Act, as amended. However, your policy may contain other exclusion which might affect your coverage such as an exclusion for nuclear events. Under the formula, the United States Government generally reimburses 85% of covered terrorism losses exceeding the statutorily established deductible paid by the insurance company providing the coverage. The Terrorism Risk Insurance Act, as amended, contains a $100 billion cap that limits U.S. Government reimbursement as well as insurers' liability for losses resulting from certified acts of terrorism when the amount of such losses exceeds $100 billion in any one calendar year. If the aggregate insured losses for all insurers exceed $100 billion, your coverage may be reduced. The coverage provided by your policy for certified acts of terrorism (like all coverages) is limited by the terms, conditions, exclusions, limits and other provisions of your policy. You will not be required to pay a premium for coverage for certified acts of terrorism at this time. If, upon renewal of your policy, a premium is going to be charged for such terrorism coverage, we will provide you with notification of what that premium will be. Nothing in this notice should be construed as an offer to reinstate coverage for a cancelled/expired policy. AA 00 13 12 2007 MMG Insurance Company Page 1 of 1 BUSINESSOWNERS BP 00 03 07 02 BUSINESSOWNERS 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 Coverage Form the words "you" and "your" refer to the Named Insured shown in the Decla- rations. The words "we", "us" and "our' refer to the Company providing this insurance. In Section II - Liability, the word "insured" means any person or organization qualifying as such under Paragraph C - Who Is An Insured. Other words and phrases that appear in quotation marks have special meaning. Refer to Paragraph H. Property Definitions in Section I - Property and Para- graph F. Liability And Medical Expenses Definitions in Section II - Liability. SECTION I - PROPERTY 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 includes Buildings as de- scribed under Paragraph a. below, Business Personal Property as described under Para- graph b. below, or both, depending on whether a Limit of Insurance is shown in the Declara- tions for that type of property. Regardless of whether coverage is shown in the Declarations for Buildings, Business Personal Property, or both, there is no coverage for property de- scribed under Paragraph 2. Property Not Cov- ered. a. Buildings, meaning the buildings and struc- tures at the premises described in the Dec- larations, including: (1) Completed additions; (2) Fixtures, including outdoor fixtures; (3) Permanently installed: (a) Machinery; and (b) Equipment; (4) Your personal property in apartments, rooms or common areas furnished by you as landlord; (5) Personal property owned by you that is used to maintain or service the buildings or structures or the premises, including: (a) Fire extinguishing equipment; (b) Outdoor furniture; (c) Floor coverings; and (d) Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering; (6) If not covered by other insurance: (a) Additions under construction, altera- tions and repairs to the buildings or structures; (b) Materials, equipment, supplies and temporary structures, on or within 100 feet of the described premises, used for making additions, alterations or repairs to the buildings or structures. b. Business Personal Property located in or on the buildings at the described premises or in the open (or in a vehicle) within 100 feet of the described premises, including: (1) Property you own that is used in your business; (2) Property of others that is in your care, custody or control, except as otherwise provided in Loss Payment Property Loss Condition Paragraph E.6.d.(3)(b); (3) Tenant's improvements and betterments. Improvements and betterments are fix- tures, alterations, installations or addi- tions: (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; and (4) Leased personal property for which you have a contractual responsibility to in- sure, unless otherwise provided for un- der Paragraph 1.b.(2). (5) Exterior building glass, if you are a ten- ant and no Limit of Insurance is shown in the Declarations for Building property. The glass must be owned by you or in your care, custody or control. 2. Property Not Covered Covered Property does not include: a. Aircraft, automobiles, motortrucks and other vehicles subject to motor vehicle registra- tion; BP 00 03 07 02 0 ISO Properties, Inc., 2001 Pagel of 43 ? b. "Money" or "securities" except as provided in the: (1) Money and Securities Optional Cover- age; or (2) Employee Dishonesty Optional Cover- age; c. Contraband, or property in the course of illegal transportation or trade; d. Land (including land on which the property is located), water, growing crops or lawns; e. Outdoor 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, all except as provided in the: (1) Outdoor Property Coverage Extension; or (2) Outdoor Signs Optional Coverage; f. Watercraft (including motors, equipment and accessories) while afloat. g. Accounts, bills, food stamps, other evi- dences of debt, accounts receivable or "valuable papers and records"; except as otherwise provided in this policy. h. "Computer(s)" which are permanently in- stalled or designed to be permanently in- stalled in any aircraft, watercraft, motortruck or other vehicle subject to motor vehicle registration. This paragraph does not apply to "computer(s)" while held as "stock". 3. Covered Causes Of Loss Risks of direct physical loss unless the loss is: a. Excluded in Paragraph B. Exclusions in Section I; or b. Limited in Paragraph 4. Limitations in Sec- tion I. 4. Limitations a. We will not pay for loss of or damage to: (1) Steam boilers, steam pipes, steam en- gines or steam turbines caused by or re- sulting from any condition or event inside such equipment. But we will pay for loss of or damage to such equipment caused by or resulting from an explosion of gases or fuel within the furnace of any fired vessel or within the flues or pas- sages through which the gases of com- bustion pass. (2) Not water boilers or other water heating equipment caused by or resulting from any condition or event inside such boil- ers or equipment, other than an explo- sion. (3) Property that is missing, where the only evidence of the loss or damage is a shortage disclosed on taking inventory, or other instances where there is no physical evidence to show what hap- pened to the property. This limitation does not apply to the Optional Coverage for Money and Securities. (4) Property that has been transferred to a person or to a place outside the de- scribed premises on the basis of unau- thorized instructions. (5) The interior of any building or structure caused by or resulting from rain, snow, sleet, ice, sand or dust, whether driven by wind or not, unless: (a) The building or structure first sustains damage by a Covered Cause of Loss to its roof or walls through which the rain, snow, sleet, ice, sand or dust enters; or (b) The loss or damage is caused by or results from thawing of snow, sleet or ice on the building or structure. b. We will not pay for loss of or damage to fragile articles such as glassware, statuary, marbles, chinaware and porcelains, if bro- ken, unless caused by the "specified causes of loss" or building glass breakage. This re- striction does not apply to: (1) Glass that is part of the exterior or inte- rior of a building or structure; (2) Containers of property held for sale; or (3) Photographic or scientific instrument lenses. c. For loss or damage by theft, the following types of property are covered only up to the limits shown: (1) $2,500 for furs, fur garments and gar- ments trimmed with fur. (2) $2,500 for jewelry, watches, watch movements, jewels, pearls, precious and semi-precious stones, bullion, gold, sil- ver, platinum and other precious alloys or metals. This limit does not apply to jewelry and watches worth $100 or less per item. (3) $2,500 for patterns, dies, molds and forms. 0 5. 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 result- ing from a Covered Cause of Loss that occurs during the policy period. The ex- penses 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. Therefore, if Paragraphs (4)(a) and/or (4)(b) apply, our total payment for direct physical loss or damage and debris re- moval expense may reach but will never exceed the Limit of Insurance on the Covered Property that has sustained loss or damage, plus $10,000. (5) Examples Example #1 (3) Subject to the exceptions in Paragraph (4), the following provisions apply: (a) The most that 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 Paragraph (a) above, the amount we will pay for debris re- moval expense is limited to 25% of the sum of the deductible plus the amount that we pay for direct physi- Example #2 cal loss or damage 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. 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). 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 re- moval expense under the terms of Para- graph (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 pay- able ($79,500) and the basic amount payable for debris removal expense ($10,500) cannot exceed the Limit of In- surance ($90,000). BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 3 of 43 ? 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 removal expense ($79,500 + $30,000 =$109,500) would exceed the Limit of Insurance ($90,000). The additional amount of cov- ered debris removal expense is $10,000, the maximum payable under Paragraph (4). Thus the total payable for debris re- moval 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 of 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. d. Collapse (1) With respect to buildings: (a) Collapse means an abrupt falling down or caving in of a building or any part of a building with the result that the building or part of the building cannot be occupied for its intended purpose; (b) A building or any part of a building that is in danger of falling down or caving in is not considered to be in a state of collapse; (c) A part of a building that is standing is not considered to be in a state of col- lapse even if it has separated from another part of the building; (d) A building that is standing or any par: of a building that is standing is not considered to be in a state of col- lapse even if it shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or expan- sion. (2) We will pay for direct physical loss or damage to Covered Property, caused by collapse of a building or any part of a building that is insured under this policy, if the collapse is caused by one or more of the following: (a) The "specified causes of loss" or breakage of building glass, all only as insured against in this policy: (b) Decay that is hidden from view, un- less the presence of such decay is known to an insured prior to collapse; (c) Insect or vermin damage that is hid- den from view, unless the presence of such damage is known to an in- sured prior to collapse; (d) Weight of people or personal prop- erty: (e) Weight of rain that collects on a roof; (f) Use of defective material or methods in construction, remodeling or reno- vation if the collapse occurs during the course of the construction, re- modeling or renovation. However, if the collapse occurs after construc- tion, remodeling or renovation is complete and is caused in part by a cause of loss listed in Paragraphs (a) through (e), we will pay for the loss or damage even if use of defective ma- terial or methods in construction, re- modeling or renovation, contributes to the collapse. The criteria set forth in Paragraphs (1)(a) through (1)(d) do not limit the coverage otherwise provided under this Additional Coverage for the causes of loss listed in Paragraphs (2)(a), (2)(d) and (2)(e). (3) With respect to the following property: (a) Awnings; (b) Gutters and downspouts; (c) Yard fixtures; (d) Outdoor swimming pools; (e) Piers, wharves and docks; 0-nr A of dQ n ISO Pronerties Inc 2nni RD nn nz m AO r_1 (f) Beach or diving platforms or appurte- nances; (g) Retaining walls; and (h) Walks, roadways and other paved surfaces; if the collapse is caused by a cause of loss listed in Paragraphs (2)(b) through (2)(f), we will pay for loss or damage to that property only if such loss or damage is a direct result of the collapse of a building insured under this policy and the property is Covered Property under this policy. (4) If personal property abruptly falls down or caves in and such collapse is not the result of collapse of a building, we will pay for loss or damage to Covered Property caused by such collapse of per- sonal property only if: (a) The collapse was caused by a cause of loss listed in Paragraphs (2)(a) through (2)(f) of this Additional Cov- erage; (b) The personal property which col- lapses is inside a building; and (c) The property which collapses is not of a kind listed in Paragraph (3) above, regardless of whether that kind of property is considered to be personal property or real property. The coverage stated in this Paragraph (4) does not apply to personal property if marring and/or scratching is the only damage to that personal property caused by the collapse. Collapse of personal property does not mean cracking, bulging, sagging, bend- ing, leaning, settling, shrinkage or ex- pansion. We will not pay the cost to repair any defect that caused the loss or damage; but we will pay the cost to repair or replace damaged parts of fire extinguishing equipment if the damage: (1) Results in discharge of any substance from an automatic fire protection system; or (2) Is directly caused by freezing f. Business Income (1) Business Income (a) We will pay for the actual loss of Business Income you sustain due to the necessary suspension of your "operations" during the "period of res- toration". The suspension must be caused by direct physical loss of or damage to property at the described premises. The loss or damage must be caused by or result from a Cov- ered Cause of Loss. With respect to loss of or damage to personal prop- erty in the open or personal property in a vehicle, the described premises include the area within 100 feet of the site at which the described premises are located. With respect to the requirements set forth in the preceding paragraph, if you occupy only part of the site at which the described premises are lo- cated, your premises means: (i) The portion of the building which you rent, lease or occupy; and (ii) Any area within the building or on the site at which the described premises are located, if that area services, or is used to gain access to, the described premises. (5) This Additional Coverage, Collapse, will (b) We will only pay for loss of Business not increase the Limits Of Insurance pro- Income that you sustain during the vided in this policy. "period of restoration" and that occurs within 12 consecutive months after e. Water Damage, Other Liquids, Powder Or the date of direct physical loss or Molten Material Damage damage. We will only pay for ordi- If loss or damage caused by or resulting nary payroll expenses for 60 days fol- from covered water or other liquid, powder lowing the date of direct physical loss or molten material damage loss occurs, we or damage, unless a greater number will also pay the cost to tear out and replace of days is shown in the Declarations. any part of the building or structure to repair damage to the system or appliance from which the water or other substance escapes. BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 5 of 43 ? (c) Business Income means the: (i) Net Income (Net Profit or Loss before income taxes) that would have been earned or incurred if no physical loss or damage had occurred, but not including any Net Income that would likely have been earned as a result of an in- crease in the volume of business due to favorable business condi- tions caused by the impact of the Covered Cause of Loss on cus- tomers or on other businesses: and (ii) Continuing normal operating ex- penses incurred, including payroll. (d) Ordinary payroll expenses: (i) Mean payroll expenses for all your employees except: i. Officers; ii. Executives; iii. Department Managers; iv. Employees under contract; and v. Additional Exemptions shown in the Declarations as: • Job Classifications; or • Employees. (ii) Include: i. Payroll; ii. Employee benefits, if directly related to payroll; iii. FICA payments you pay; iv. Union dues you pay; and v. Workers' compensation pre- miums. (2) Extended Business Income (a) If the necessary suspension of your "operations" produces a Business In- come loss payable under this policy, we will pay for the actual loss of Busi- ness Income you incur during the pe- riod that: (i) Begins on the date property ex- cept finished stock is actually re- paired, rebuilt or replaced and "operations" are resumed; and (ii) Ends on the earlier of: i. The date you could restore your "operations", with reason- able speed, to the level which would generate the Business Income amount that would have existed if no direct physi- cal loss or damage had oc- curred; or ii. 30 consecutive days after the date determined in Paragraph (a)(i) above, unless a greater number of consecutive days is shown in the Declarations. However, Extended Business Income does not apply to loss of Business In- come incurred as a result of unfavor- able business conditions caused by the impact of the Covered Cause of Loss in the area where the described premises are located. (b) Loss of Business income must be caused by direct physical loss or damage at the described premises caused by or resulting from any Cov- ered Cause of Loss. (3) With respect to the coverage provided in this Additional Coverage, suspension means: (a) The partial slowdown or complete cessation of your business activities; and (b) That a part or all of the described premises is rendered untenantable, if coverage for Business Income ap- plies. (4) This Additional Coverage is not subject to the Limits of Insurance of Section I - Property. g. Extra Expense (1) We will pay necessary Extra Expense you incur during the "period of restora- tion" that you would not have incurred if there had been no direct physical loss or damage to property at the described premises. The loss or damage must be caused by or result from a Covered Cause of Loss. With respect to loss of or damage to personal property in the open or personal property in a vehicle, the de- scribed premises include the area within 100 feet of the site at which the de- scribed premises are located. With respect to the requirements set forth in the preceding paragraph, if you occupy only part of the site at which the described premises are located, your premises means: (a) The portion of the building which you rent, lease or occupy; and (b) Any area within the building or on the site at which the described premises are located, if that area services, or is used to gain access to, the described premises. (2) Extra Expense means expense incurred: (a) To avoid or minimize the suspension of business and to continue "opera- tions": At the described premises; or (ii) At replacement premises or at temporary locations, including re- location expenses, and costs to equip and operate the replace- ment or temporary locations. (b) To minimize the suspension of busi- ness if you cannot continue "opera- tions". (c) To: (i) Repair or replace any property; or (ii) Research, replace or restore the lost information on damaged "valuable papers and records" to the extent it reduces the amount of loss that otherwise would have been payable under this Additional Cover- age or Additional Coverage f. Busi- ness Income. (3) With respect to the coverage provided in this Additional Coverage, suspension means: (a) The partial slowdown or complete cessation of your business activities; and (b) That a part or all of the described premises is rendered untenantable, if coverage for Business Income ap- plies. (4) We will only pay for Extra Expense that occurs within 12 consecutive months af- ter the date of direct physical loss or damage. This Additional Coverage is not subject to the Limits of Insurance of Sec- tion I - Property. h. 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 earlier of: (1) The date of direct physical loss or dam- age; or (2) The end of the policy period. The most we will pay for each location un- der this Additional Coverage is $10,000 for the sum of all such expenses arising out of Covered Causes of Loss occurring during each separate 12 month period of this pol- icy. i. Civil Authority We will pay for the actual loss of Business Income you sustain and necessary Extra Expense caused by action of civil authority that prohibits access to the described prem- ises due to direct physical loss of or damage to property, other than at the described premises, caused by or resulting from any Covered Cause of Loss. The coverage for Business Income will be- gin 72 hours after the time of that action and will apply for a period of up to three con- secutive weeks after coverage begins. The coverage for necessary Extra Expense will begin immediately after the time of that action and ends: (1) 3 consecutive weeks after the time of that action; or (2) When your Business Income coverage ends; whichever is later. The definitions of Business Income and Ex- tra Expense contained in the Business In- come and Extra Expense Additional Cover- ages also apply to this Civil Authority Additional Coverage. The Civil Authority Additional Coverage is not subject to the Limits of Insurance of Section I - Property. BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 7 of 43 ? j. Money Orders And Counterfeit Paper Currency We will pay for loss resulting directly from your having accepted in good faith, in ex- change for merchandise, "money" or ser- vices: (1) Money orders issued by any post office. express company or bank that are not paid upon presentation; or (2) "Counterfeit" paper currency that is ac- quired during the regular course of busi- ness. The most we will pay for any loss under this Additional Coverage is $1,000. k. Forgery Or Alteration (1) We will pay for loss resulting directly from forgery or alteration of, any check, draft, promissory note, bill of exchange or similar written promise of payment in "money", that you or your agent has is- sued, or that was issued by someone who impersonates you or your agent. (2) If you are sued for refusing to pay the check, draft, promissory note, bill of ex- change or similar written promise of pay- ment in "money", on the basis that it has been forged or altered, and you have our written consent to defend against the suit, we will pay for any reasonable legal expenses that you incur in that defense. (3) The most we will pay for any loss, includ- ing legal expenses, under this Additional Coverage is $2,500, unless a higher Limit of Insurance is shown in the Decla- rations. 1. Increased Cost Of Construction (1) This Additional Coverage applies only to buildings insured on a replacement cost basis. (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 Para- graphs (3) through (9) of this Additional Coverage. (3) The ordinance or law referred to in Para- graph (2) of this Additional Coverage is an ordinance or law that regulates the construction or repair of buildings or es- tablishes zoning or land use require- ments at the described premises, and is in force at the time of loss. (4) Under this Additional Coverage, we will not pay any costs due to an ordinance or law that: (a) You were required to comply with before the loss, even when the build- ing was undamaged; and (b) You failed to comply with. (5) Under this Additional Coverage, we will not pay any costs associated with the en- forcement of an ordinance or law which requires any insured or others to test for, monitor; clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants". (6) The most we will pay under this Addi- tional Coverage, for each described building insured under Section I - Prop- erty, is $10,000. If a damaged build- ing(s) is covered under a blanket Limit of Insurance which applies to more than one building or item of property, then the most we will pay under this Additional Coverage, for each damaged building, is $10,000. The amount payable under this Addi- tional Coverage is additional insurance. (7) With respect to this Additional Coverage: (a) We will not pay for the Increased Cost of Construction: (i) Until the property is actually re- paired or replaced, at the same or another premises; and (ii) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage, not to exceed two years. We may extend this period in writing during the two years. (b) If the building is repaired or replaced at the same premises, or if you elect to rebuild at another premises, the most we will pay for the Increased Cost of Construction is the increased cost of construction at the same premises. Dona R of Al 0 ISO Prooerties. Inc.. 2001 BP 00 03 07 02 ? (c) If the ordinance or law requires relo- cation to another premises, the most we will pay for the Increased Cost of Construction is the increased cost of construction at the new premises. (8) This Additional Coverage is not subject to the terms of the Ordinance or Law Ex- clusion, to the extent that such Exclusion would conflict with the provisions of this Additional Coverage. (9) The costs addressed in the Loss Pay- ment Property Loss Condition in Section - Property do not include the in- creased cost attributable to enforcement of an ordinance or law. The amount pay- able under this Additional Coverage, as stated in Paragraph (6) of this Additional Coverage, is not subject to such limita- tion. m. Business Income From Dependent Properties (1) We will pay for the actual loss of Busi- ness Income you sustain due to physical loss or damage at the premises of a de- pendent property caused by or resulting from any Covered Cause of Loss. The most we will pay under this Addi- tional Coverage is $5,000 unless a higher Limit of Insurance is indicated in the Declarations. (2) We will reduce the amount of your Busi- ness Income loss, other than Extra Ex- pense, to the extent you can resume "op- erations", in whole or in part, by using any other available: (a) Source of materials; or (b) Outlet for your products. (3) If you do not resume "operations", or do not resume "operations" as quickly as possible, we will pay based on the length of time it would have taken to resume "operations" as quickly as possible. (4) Dependent property means property owned by others whom you depend on to: (a) Deliver materials or services to you, or to others for your account. But ser- vices does not mean water, commu- nication or power supply services; (b) Accept your products or services; (c) Manufacture your products for deliv- ery to your customers under contract for sale; or (d) Attract customers to your business. The dependent property must be located in the coverage territory of this policy. (5) The coverage period for Business In- come under this Additional Coverage: (a) Begins 72 hours after the time of direct physical loss or damage caused by or resulting from any Cov- ered Cause of Loss at the premises of the dependent property; and (b) Ends on the date when the property at the premises of the dependent property should be repaired, rebuilt or replaced with reasonable speed and similar quality. (6) The Business Income coverage period, as stated in Paragraph (5), does not in- clude any increased period required due to the enforcement of any ordinance or law that: (a) Regulates the construction, use or repair, or requires the tearing down of any property; or (b) Requires any insured or others to test for, monitor, clean up, remove, con- tain, treat, detoxify or neutralize, or in any way respond to, or assess the ef- fects of "pollutants". The expiration date of this policy will not reduce the Business Income coverage period. (7) The definition of Business Income con- tained in the Business Income Additional Coverage also applies to this Business Income From Dependent Properties Ad- ditional Coverage. n. Glass Expenses (1) We will pay for expenses incurred to put up temporary plates or board up open- ings if repair or replacement of damaged glass is delayed. (2) We will pay for expenses incurred to remove or replace obstructions when re- pairing or replacing glass that is part of a building. This does not include removing or replacing window displays. BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 9 of 43 ? o. Fire Extinguisher Systems Recharge Expense (1) We will pay: (a) The cost of recharging or replacing, whichever is less, your fire extin- guishers and fire extinguishing sys- tems (including hydrostatic testing if needed) if they are discharged on or within 100 feet of the described premises; and (b) For loss or damage to Covered Prop- erty if such loss or damage is the re- sult of an accidental discharge of chemicals from a fire extinguisher or a fire extinguishing system. (2) No coverage will apply if the fire extin- guishing system is discharged during in- stallation or testing. (3) The most we will pay under this Addi- tional Coverage is $5,000 in any one oc- currence. 6. Coverage Extensions In addition to the Limits of Insurance of Section I - Property, you may extend the insurance provided by this policy as provided below. Except as otherwise provided, the following Ex- tensions 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 de- scribed premises, unless a higher Limit of In- surance is shown in the Declarations. a. Newly Acquired Or Constructed Property (1) Buildings If this policy covers Buildings, 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 premises other than the one described, in- tended for: (i) 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) Business Personal Property (a) If this policy covers Business Per- sonal 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. (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. This Extension does not apply to per- sonal property that you temporarily ac- quire in the course of installing or per- forming work on such property or your wholesale activities. The most we will pay for loss or damage under this Extension is $100,000 at each premises. (3) Period Of Coverage With respect to insurance on or at each newly acquired or constructed property, coverage will end when any of the follow- ing first occurs: (a) This policy expires; (b) 30 days expire after you acquire the property or begin construction of that part of the building that would qualify as covered property; or (c) You report values to us. We will charge you additional premium for values reported from the date you acquire the property or begin construc- tion of that part of the building that would qualify as covered property. b. Personal Property Off Premises You may extend the insurance that applies to Business Personal Property to apply to covered Business Personal Property, other than "money" and "securities", "valuable pa- pers and records" or accounts receivable, while it is in the course of transit or at a premises you do not own, lease or operate. The most we will pay for loss or damage under this Extension is $5,000. c. Outdoor Property You may extend the insurance provided by this policy to apply to your outdoor fences, radio and television antennas (including sat- ellite dishes), signs (other than signs at- tached to buildings), trees, shrubs and plants, including debris removal expense, caused by or resulting from any of the fol- lowing 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 $2,500, but not more than $500 for any one tree, shrub or plant. d. Personal Effects You may extend the insurance that applies to Business Personal Property to apply to personal effects owned by you, your offi- cers, your partners or "members", your "managers" or your employees. This exten- sion does not apply to: (1) Tools or equipment used in your busi- ness; or (2) Loss or damage by theft. The most we will pay for loss or damage under this Extension is $2,500 at each de- scribed premises. e. Valuable Papers And Records (1) You may extend the insurance that ap- plies to Business Personal Property to apply to direct physical loss or damage to "valuable papers and records" that you own, or that are in your care, custody or control caused by or resulting from a Covered Cause of Loss. This Coverage Extension includes the cost to research, replace or restore the lost information on "valuable papers and records" for which duplicates do not exist. (2) This Coverage Extension does not apply to: (a) Property held as samples or for de- livery after sale; (b) Property in storage away from the premises shown in the Declarations. (3) The most we will pay under this Cover- age Extension for loss or damage to "valuable papers and records" in any one occurrence at the described premises is $10,000, unless a higher Limit of Insur- ance for "valuable papers and records" is shown in the Declarations. For "valuable papers and records" not at the described premises, the most we will pay is $5,000. (4) Paragraph B. Exclusions in Section I - Property does not apply to this Cover- age Extension except for: (a) Paragraph B.1.c., Governmental Action; (b) Paragraph 13.1.d., Nuclear Hazard; (c) Paragraph B.1.f., War And Military Action; (d) Paragraph B.2.f., Dishonesty; (e) Paragraph B.2.g., False Pretense; and (f) Paragraph B.3. f. Accounts Receivable (1) You may extend the insurance that ap- plies to Business Personal Property to apply to accounts receivable. We will pay: (a) All amounts due from your customers that you are unable to collect; (b) Interest charges on any loan required to offset amounts you are unable to collect pending our payment of these amounts; (c) Collection expenses in excess of your normal collection expenses that are made necessary by loss or damage; and (d) Other reasonable expenses that you incur to re-establish your records of accounts receivable; that result from direct physical loss or damage by any Covered Cause of Loss to your records of accounts receivable. (2) The most we will pay under this Cover- age Extension for loss or damage in any one occurrence at the described prem- ises is $10,000, unless a higher Limit of Insurance for accounts receivable is shown in the Declarations. For accounts receivable not at the de- scribed premises, the most we will pay is $5,000. BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 11 of 43 ? (3) Paragraph B. Exclusions in Section i - Property does not apply to this Cover- age Extension except for: (a) Paragraph BA.c., Governmentai Action; (b) Paragraph B.1.d., Nuclear Hazard; (c) Paragraph B.1.f., War And Military Action; (d) Paragraph B.2.f., Dishonesty; (e) Paragraph B.2.g., False Pretense; (f) Paragraph B.3.; and (g) Paragraph B.S. Accounts Receivable Exclusion. B. Exclusions 1. We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes con- currently or in any sequence to the loss. These exclusions apply whether or not the loss event results in widespread damage or affects a sub- stantial area. a. Ordinance Or Law (1) The enforcement of any ordinance or law: (a) Regulating the construction, use or repair of any property; or (b) Requiring the tearing down of any property, including the cost of remov- ing its debris. (2) This exclusion, Ordinance Or Law, ap- plies whether the loss results from: (a) An ordinance or law that is enforced even if the property has not been damaged; or (b) The increased costs incurred to com- ply with an ordinance or law in the course of construction, repair, reno- vation, remodeling or demolition of property or removal of its debris, fol- lowing a physical loss to that prop- erty. b. Earth Movement (1) Earthquake, including any earth sinking, rising or shifting related to such event; (2) Landslide, including any earth sinking, rising or shifting related to such event; (3) Mine subsidence, meaning subsidence of a man-made mine, whether or not mining activity has ceased; (4) Earth sinking (other than sinkhole cok lapse), rising or shifting including soil conditions which cause settling, cracking or other disarrangement of foundations or other parts of realty. Soil conditions include contraction, expansion, freezing, thawing, erosion, improperly compacted soil and the action of water under the ground surface. But if Earth Movement, as described in Paragraphs (1) through (4) above, results in fire or explosion, we will pay for the loss or damage caused by that fire or explosion. (5) Volcanic eruption, explosion or effusion. But if volcanic eruption, explosion or ef- fusion results in fire, building glass breakage or volcanic action, we will pay for the loss or damage caused by that fire, building glass breakage or volcanic action. Volcanic action means direct loss or damage resulting from the eruption of a volcano when the loss or damage is caused by: (a) Airborne volcanic blast or airborne shock waves; (b) Ash, dust or particulate matter; or (c) Lava flow. All volcanic eruptions that occur within any 168-hour period will constitute a sin- gle occurrence. Volcanic action does not include the cost to remove ash, dust or particulate matter that does not cause direct physical loss of or damage to Covered Property. c. Governmental Action Seizure or destruction of property by order of governmental authority. But we will pay for loss or damage caused by or resulting from acts of destruction or- dered by governmental authority and taken at the time of a fire to prevent its spread, if the fire would be covered under this policy. d. Nuclear Hazard Nuclear reaction or radiation, or radioactive contamination, however caused. But if nuclear reaction or radiation, or radio- active contamination, results in fire, we will pay for the loss or damage caused by that fire. e. Power Failure The failure of power or other utility service supplied to the described premises, how- ever caused, if the failure occurs away from the described premises. But if the failure of power or other utility ser- vice results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. This exclusion does not apply to loss or damage to "computer(s)" and "electronic media and records". f. War And 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. g. Water (1) Flood, surface water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not; (2) Mudslide or mudflow; (3) Water that backs up or overflows from a sewer, drain or sump; or (4) Water under the ground surface pressing on, or flowing or seeping through: (a) Foundations, walls, floors or paved surfaces; (b) Basements, whether paved or not; or (c) Doors, windows or other openings. But if Water, as described in Paragraphs (1) through (4), results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. h. Certain Computer-Related Losses (1) The failure, malfunction or inadequacy of: (i) "Computer" hardware, including microprocessors or other elec- tronic data processing equipment as may be described elsewhere in this policy; (ii) "Computer" application software or other "electronic media and re- cords" as may be described else- where in this policy; (iii) "Computer" operating systems and related software; (iv) "Computer" networks; (v) Microprocessors ("computer" chips) not part of any "computer" system; or (vi) Any other computerized or elec- tronic equipment or components; or (b) Any other products, and any services, data or functions that directly or indi- rectly use or rely upon, in any man- ner, any of the items listed in Para- graph (a) above; due to the inability to correctly recognize, distinguish, interpret or accept one or more dates or times. An example is the inability of computer software to recog- nize the year 2000. (2) Any advice, consultation, design, evalua- tion, inspection, installation, mainte- nance, repair, replacement or supervi- sion provided or done by you or for you to determine, rectify or test for, any po- tential or actual problems described in Paragraph (1) above. However, if excluded loss or damage, as described in Paragraph (1) above results in a "Specified Cause of Loss" under Section I - Property, we will pay only for the loss or damage caused by such "Specified Cause of Loss". We will not pay for repair, replacement or modification of any items in Paragraphs (1)(a) or (1)(b) to correct any deficiencies or change any features. 2. We will not pay for loss or damage caused by or resulting from any of the following: a. Electrical Apparatus (a) Any of the following, whether belong- Artificially generated electrical current, fin- ing to any insured or to others: cluding electric arcing, that disturbs electri- cal devices, appliances or wires. BP 00 03 07 02 © ISO Properties, Inc., 2001 Page 13 of 43 0 But if artificially generated electrical current results in fire, we will pay for the loss oi- damage caused by fire. We will pay for loss or damage to "corn- puter(s)" due to artificially generated electri- cal current if such loss or damage is caused by or results from: (1) An occurrence that took place within 100 feet of the described premises; or (2) Interruption of electric power supply, power surge, blackout or brownout if the cause of such occurrence took place within 100 feet of the described prem- ises. b. Consequential Losses Delay, loss of use or loss of market. c. Smoke, Vapor, Gas Smoke, vapor or gas from agricultural smudging or industrial operations. d. Steam Apparatus Explosion of steam boilers, steam pipes, steam engines or steam turbines owned or leased by you, or operated under your con- trol. But if explosion of steam boilers, steam pipes, steam engines or steam turbines re- sults in fire or combustion explosion, we will pay for the loss or damage caused by that fire or combustion explosion. We will also pay for loss or damage caused by or result- ing from the explosion of gases or fuel within the furnace of any fired vessel or within the flues or passages through which the gases of combustion pass. e. Frozen Plumbing Water, other liquids, powder or molten ma- terial that leaks or flows from plumbing, heating, air conditioning or other equipment (except fire protective systems) caused by or resulting from freezing, unless: (1) You do your best to maintain heat in the building or structure; or (2) You drain the equipment and shut off the supply if the heat is not maintained. f. Dishonesty Dishonest or criminal acts by you, anyone else with an interest in the property, or any of your or their partners, "members", offi- cers, "managers", employees, directors, trustees, authorized representatives or any- one to whom you entrust the property for any purpose: (1) Acting alone or in collusion with others; (2) Whether or not occurring during the hours of employment. This exclusion does not apply to acts of de- struction by your employees, but theft by employees is not covered, With respect to accounts receivable and "valuable papers and records", this exclu- sion does not apply to carriers for hire. This exclusion does not apply to coverage that is provided under the Employee Dis- honesty Optional Coverage. g. False Pretense Voluntary parting with any property by you or anyone else to whom you have entrusted the property if induced to do so by any fraudulent scheme, trick, device or false pretense. h. Exposed Property Rain, snow, ice or sleet to personal property in the open. i. Collapse Collapse, except as provided in the Addi- tional Coverage for Collapse. But if collapse results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. j. Pollution We will not pay for loss or damage caused by or resulting from the discharge, dispersal, seepage, migration, release or escape of "pollutants" unless the discharge, dispersal, seepage, migration, release or escape is it- self caused by any of the "specified causes of loss". But if the discharge, dispersal, seepage, migration, release or escape of "pollutants" results in a "specified cause of loss", we will pay for the loss or damage caused by that "specified cause of loss". k. Neglect Neglect of an insured to use all reasonable means to save and preserve property from further damage at and after the time of loss. 1. Other Types Of Loss (1) Wear and tear; (2) Rust, corrosion, fungus, decay, deterio- ration, hidden or latent defect or any quality in property that causes it to dam- age or destroy itself; (3) Smog; (4) Settling, cracking, shrinking or expan- sion: (5) Nesting or infestation, or discharge or release of waste products or secretions, by insects, birds, rodents or other ani- mals; (6) Mechanical breakdown, including rupture or bursting caused by centrifugal force. This exclusion does not apply with re- spect to the breakdown of "computer(s)"; (7) The following causes of loss to personal property: (a) Dampness or dryness of atmosphere; (b) Changes in or extremes of tempera- ture; or (c) Marring or scratching. But if an excluded cause of loss that is listed in Paragraphs (1) through (7) above results in a "specified cause of loss" or building glass breakage, we will pay for the loss or damage caused by that "specified cause of loss" or building glass breakage. m. Errors Or Omissions Errors or omissions in: (1) Programming, processing or storing data, as described under "electronic me- dia and records" or in any "computer" operations; or (2) Processing or copying "valuable papers and records". However, we will pay for direct physical loss or damage caused by resulting fire or explo- sion if these causes of loss would be cov- ered by this coverage form. n. Installation, Testing, Repair Errors or deficiency in design, installation, testing, maintenance, modification or repair of your "computer" system including "elec- tronic media and records". However, we will pay for direct physical loss or damage caused by resulting fire or explo- sion if these causes of loss would be cov- ered by this coverage form. o. Electrical Disturbance Electrical or magnetic injury, disturbance or erasure of "electronic media and records", except as provided for under the Coverage Extensions of Section I - Property. However, we will pay for direct loss or dam- age caused by lightning. 3. We will not pay for loss or damage caused by or resulting from any of the following Para- graphs a. through c. But if an excluded cause of loss that is listed in Paragraphs a. through c. results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. a. Weather Conditions Weather conditions. But this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in Paragraph B.1. above to produce the loss or damage. b. Acts Or Decisions Acts or decisions, including the failure to act or decide, of any person, group, organiza- tion or governmental body. c. Negligent Work Faulty, inadequate or defective: (1) Planning, zoning, development, survey- ing, siting; (2) Design, specifications, workmanship, repair, construction, renovation, remod- eling, grading, compaction; (3) Materials used in repair, construction, renovation or remodeling; or (4) Maintenance; of part or all of any property on or off the described premises. 4. Business Income And Extra Expense Exclusions a. We will not pay for (1) Any Extra Expense, or increase of Busi- ness Income loss, caused by or resulting from: (a) Delay in rebuilding, repairing or re- placing the property or resuming "op- erations", due to interference at the location of the rebuilding, repair or replacement by strikers or other per- sons; or (b) Suspension, lapse or cancellation of any license, lease or contract. But if the suspension, lapse or cancellation is directly caused by the suspension of "operations", we will cover such loss that affects your Business In- come during the "period of restora- tion". (2) Any other consequential loss. BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 15 of 43 ? b. With respect to this exclusion, suspension: means: (1) The partial slowdown or complete cessa- tion of your business activities; and (2) That a part or all of the described prem- ises is rendered untenantable, if cover- age for Business Income applies. 5. Accounts Receivable Exclusion The following additional exclusion applies to the Accounts Receivable Coverage Extension: We will not pay for: a. Loss or damage caused by or resulting from alteration, falsification, concealment or de- struction of records of accounts receivable done to conceal the wrongful giving, taking or withholding of "money", "securities" or other property. This exclusion applies only to the extent of the wrongful giving, taking or withholding. b. Loss or damage caused by or resulting from bookkeeping, accounting or billing errors or omissions. c. Any loss or damage that requires any audit of records or any inventory computation to prove its factual existence. C. Limits Of Insurance 1. The most we will pay for loss or damage in any one occurrence is the applicable Limit of Insur- ance of Section I - Property shown in the Dec- larations. 2. The most we will pay for loss of or damage to outdoor signs attached to buildings is $1,000 per sign in any one occurrence. 3. The limits applicable to the Coverage Exten- sions and the Fire Department Service Charge and Pollutant Clean Up and Removal Additional Coverages are in addition to the Limits of In- surance of Section I - Property. 4. Building Limit - Automatic Increase a. The Limit of Insurance for Buildings will automatically increase by the annual per- centage shown in the Declarations. b. The amount of increase will be: (1) The Building limit that applied on the most recent of the policy inception date, the policy anniversary date, or any other policy change amending the Building limit, times (2) The percentage of annual increase shown in the Declarations, expressed as a decimal (example: 8% is .08), times (3) The number of days since the beginning of the current policy year of the effective date of the most recent policy change amending the Building limit, divided by 365. Example: If: The applicable Building limit is $100,000. The annual percentage in- crease is 8%. The number of days since the beginning of the policy year (or last policy change) is 146. The amount of increase is $100,000 x .08 x 146 = 365 = $3,200. 5. Business Personal Property Limit - Seasonal Increase a. The Limit of Insurance for Business Per- sonal Property will automatically increase by 25% to provide for seasonal variations. b. This increase will apply only if the Limit of Insurance shown for Business Personal Property in the Declarations is at least 100% of your average monthly values during the lesser of: (1) The 12 months immediately preceding the date the loss or damage occurs; or (2) The period of time you have been in business as of the date the loss or dam- age occurs. D. Deductibles 1. We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds the Deductible shown in the Declara- tions. We will then pay the amount of loss or damage in excess of the Deductible up to the applicable Limit of Insurance of Section I - Property. 2. Regardless of the amount of the Deductible, the most we will deduct from any loss or damage for Glass and under all of the following Optional Coverages in any one occurrence is the Op- tional Coverage/Glass Deductible shown in the Declarations: a. Money and Securities; b. Employee Dishonesty; and c. Outdoor Signs. But this Optional Coverage/Glass Deductible will not increase the Deductible shown in the Declarations. This Deductible will be used to satisfy the requirements of the Deductible in the Declarations. 3. No deductible applies to the following Additional Coverages: a. Fire Department Service Charge; b. Business Income; c. Extra Expense; d. Civil Authority; and e. Fire Extinguisher pense. Systems Recharge Ex- E. Property Loss Conditions 1. Abandonment There can be no abandonment of any property to us. 2. Appraisal If we and you disagree on the amount of loss, either may make written demand for an ap- praisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree, either may request that selection be made by a judge of a court having jurisdic- tion. The appraisers will state separately the amount of loss. If they fail to agree, they will submit their differences to the umpire. A deci- sion 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 nec- essary to protect the Covered Property, for consideration in the settlement of the claim. This will not increase the Limits of Insurance of Section I - Property. How- ever, 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 feasible, set the damaged prop- erty aside and in the best possible order for examination. (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. 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. (9) Resume all or part of your "operations" as quickly as possible. 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. Legal Action Against Us No one may bring a legal action against us un- der this insurance unless: a. There has been full compliance with all of the terms of this insurance; and b. The action is brought within 2 years after the date on which the direct physical loss or damage occurred. BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 17 of 43 ? 5. Electronic Media And Records Limitation We will not pay for any loss of Business income caused by direct physical loss of or damage to "electronic media and records" after the longer of: a. 60 consecutive days from the date of direct physical loss or damage; or b. The period, beginning with the date of direct physical loss or damage, necessary to re- pair, rebuild or replace with reasonable speed and similar quality, other property at the described premises due to loss or dam- age caused by the same occurrence. Example #1 A Covered Cause of Loss damages a "computer" on June 1. It takes until September l to replace the "computer", and until October 1 to restore the data that was lost when the damage occurred. We will only pay for the Business Income loss sustained during the period June 1 - September 1. Loss during the period September 2 - October 1 is not covered. Example #2 A Covered Cause of Loss results in the loss of data processing programming records on Au- gust 1. The records are replaced on October 15. We will only pay for the Business Income loss sustained during the period August 1 - September 29 (60 consecutive days). Loss dur- ing the period September 30 - October 15 is not covered. 6. Loss Payment In the event of loss or damage covered by this policy: a. 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; (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 Paragraph d.(1)(e) below. b. We will give notice of our intentions within 30 days after we receive the sworn proof of loss. c. We will not pay you more than your financial interest in the Covered Property. d. Except as provided in Paragraphs (2) through (8) below, we will determine the value of Covered Property as follows: (1) At replacement cost without deduction for depreciation, subject to the following: (a) If, at the time of loss, the Limit of Insurance on the lost or damaged property is 80% or more of the full replacement cost of the property im- mediately before the loss, we will pay the cost to repair or replace, after ap- plication of the deductible and without deduction for depreciation, but not more than the least of the following amounts: (i) The Limit of Insurance under Section I - Property that applies to the lost or damaged property; (ii) The cost to replace, on the same premises, the lost or damaged property with other property: I. Of comparable material and quality; and ii. Used for the same purpose; or (iii) The amount that you actually spend that is necessary to repair or replace the lost or damaged property. If a building is rebuilt at a new prem- ises, the cost is limited to the cost which would have been incurred had the building been built at the original premises. (b) If, at the time of loss, the Limit of Insurance applicable to the lost or damaged property is less than 80% of the full replacement cost of the prop- erty immediately before the loss, we will pay the greater of the following amounts, but not more than the Limit of Insurance that applies to the prop- erty: (i) The actual cash value of the lost or damaged property; or (ii) A proportion of the cost to repair or replace the lost or damaged property, after application of the deductible and without deduction for depreciation. This proportion will equal the ratio of the applica- ble Limit of Insurance to 80% of the cost of repair or replacement. 0 (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 dam- age settled on an actual cash value basis, you may still make a claim on a replacement cost basis 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: (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 or damage. However, if the cost to repair or re- place the damaged building property is $2,500 or less, we will settle the loss according to the provisions of Paragraphs d.(1)(a) and d.(1)(b) above whether or not the actual re- pair or replacement is complete. (e) The cost to repair, rebuild or replace does not include the increased cost attributable to enforcement of any or- dinance or law regulating the con- struction, use or repair of any prop- erty. (2) If the "Actual Cash Value - Buildings" option applies, as shown in the Declara- tions, Paragraph (1) above does not ap- ply to Buildings. Instead, we will deter- mine the value of Buildings at actual cash value. (3) The following property at actual cash value: (a) Used or second-hand merchandise held in storage or for sale; (b) Property of others. However, if an item(s) of personal property of others is subject to a written contract which governs your liability for loss or dam- age to that item(s), then valuation of that item(s) will be based on the amount for which you are liable under such contract, but not to exceed the lesser of the replacement cost of the property or the applicable Limit of In- surance; (c) Household contents, except personal property in apartments or rooms fur- nished by you as landlord; (d) Manuscripts; (e) Works of art, antiques or rare articles, including etchings, pictures, statuary, marbles, bronzes, porcelains and bric-a-brac. (4) Glass at the cost of replacement with safety glazing material if required by law. (5) Tenants' Improvements and Betterments at: (a) Replacement cost if you make re- pairs promptly. (b) A proportion of your original cost if you do not make repairs promptly. We will determine the proportionate value as follows: (i) Multiply the original cost by the number of days from the loss or damage to the expiration of the lease; and (ii) Divide the amount determined in (i) above by the number of days from the installation of improve- ments to the expiration of the lease. If your lease contains a renewal op- tion, the expiration of the renewal op- tion period will replace the expiration of the lease in this procedure. (c) Nothing if others pay for repairs or replacement. (6) Loss or damage to "valuable papers and records" will be valued at the cost of res- toration or replacement, including the cost of data entry, re-programming, com- puter consultation services and the me- dia on which the data or programs re- side. To the extent that the contents of the "valuable papers and records" are not restored, the "valuable papers and records" will be valued at the cost of re- placement with blank materials of sub- stantially identical type. (7) Applicable only to the Optional Cover- ages: (a) "Money" at its face value; and (b) "Securities" at their value at the close of business on the day the loss is dis- covered. BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 19 of 43 ? (8) Applicable only to Accounts Receivable (a) If you cannot accurately establish the amount of accounts receivable out- standing as of the time of loss or damage: (i) We will determine the total of the average monthly amounts of ac- counts receivable for the 12 months immediately preceding the month in which the loss or damage occurs; and (ii) We will adjust that total for any normal fluctuations in the amount of accounts receivable for the month in which the loss or dam- age occurred or for any demon- strated variance from the average for that month. (b) The following will be deducted from the total amount of accounts receiv- able, however that amount is estab- lished: (i) The amount of the accounts for which there is no loss or damage; (ii) The amount of the accounts that you are able to re-establish or col- lect; (iii) An amount to allow for probable bad debts that you are normally unable to collect; and (iv) All unearned interest and service charges. e. Our payment for loss of or damage to per- sonal property of others will only be for the account of the owners of the property. 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 owners' prop- erty. We will not pay the owners more than their financial interest in the Covered Prop- erty. 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, provided you have complied with all of the terms of this policy, and (1) We have reached agreement with you on the amount of loss; or (2) An appraisal award has been made 7, Recovered Property If either you or we recover any property after, foss settlement, that party must give the other prompt notice. At your option, you may retain the property. But then you must return to us the amount we paid to you for the property. We will pay recovery expenses and the expenses to re- pair the recovered property, subject to the Lim- its of Insurance of Section I - Property. 8. Resumption Of Operations We will reduce the amount of your: a. Business Income loss, other than Extra Expense, to the extent you can resume your "operations". in whole or in part, by using damaged or undamaged property (including merchandise or stock) at the described premises or elsewhere. b. Extra Expense loss to the extent you can return "operations" to normal and discon- tinue such Extra Expense. 9. Vacancy a. Description Of Terns (1) As used in this Vacancy Condition, the term building and the term vacant have the meanings set forth in Paragraphs (a) and (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 building, building means the entire building. 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. (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 occurs: (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 Paragraphs (1)(a) through (1)(f) above, we will re- duce the amount we would otherwise pay for the loss or damage by 15%. F. Property General Conditions 1. Control Of Property Any act or neglect of any person other than you beyond your direction or control will not affect this insurance. The breach of any condition of this Coverage Form at any one or more locations will not af- fect coverage at any location where, at the time of loss or damage, the breach of condition does not exist. 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 policy, the mortgageholder will still have the right to receive loss pay- ment if the mortgageholder: (1) Pays any premium due under this policy 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 (3) Has notified us of any change in owner- ship, occupancy or substantial change in risk known to the mortgageholder. All of the terms of this policy will then apply directly to the mortgageholder. e. If we pay the mortgageholder for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this policy: (1) The mortgageholder's rights under the mortgage will be transferred to us to the extent of the amount we pay; and (2) The mortgageholder's right to recover the full amount of the mortgageholder's claim will not be impaired. At our option, we may pay to the mortgage- holder the whole principal on the mortgage plus any accrued interest. In this event, your mortgage and note will be transferred to us and you will pay your remaining mortgage debt to us. f. If we cancel this policy, we will give written notice to the mortgageholder at least: (1) 10 days before the effective date of cancellation if we cancel for your non- payment of premium; or (2) 30 days before the effective date of cancellation if we cancel for any other reason. g. If we elect not to renew this policy, we will give written notice to the mortgageholder at least 10 days before the expiration date of this policy. 3. No Benefit To Bailee No person or organization, other than you, hav- ing custody of Covered Property will benefit from this insurance. 4. Policy Period, Coverage Territory Under Section I - Property: a. We cover loss or damage commencing: (1) During the policy period shown in the Declarations; and (2) Within the coverage territory or, with respect to property in transit, while it is between points in the coverage territory. b. The coverage territory is: (1) The United States of America (including its territories and possessions); (2) Puerto Rico; and (3) Canada. BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 21 of 43 ? G. Optional Coverages If shown as applicable in the Declarations, the fol- lowing Optional Coverages also apply. These cov- erages are subject to the terms and conditions ap- plicable to property coverage in this policy, except as provided below. 1. Outdoor Signs a. We will pay for direct physical loss of or damage to all outdoor signs at the described premises: (1) Owned by you; or (2) Owned by others but in your care, cus- tody or control. b. Paragraph A.3., Covered Causes Of Loss, and Paragraph B., Exclusions in Section I - Property, do not apply to this Optional Coverage, except for: (1) Paragraph B.1.c., Governmental Action; (2) Paragraph 13.11A., Nuclear Hazard; and (3) Paragraph 13.1.f., War And Military Ac- tion. c. We will not pay for loss or damage caused by or resulting from: (1) Wear and tear; (2) Hidden or latent defect; (3) Rust; (4) Corrosion; or (5) Mechanical breakdown. d. The most we will pay for loss or damage in any one occurrence is the Limit of Insurance for Outdoor Signs shown in the Declara- tions. e. The provisions of this Optional Coverage supersede all other references to outdoor signs in this policy. 2. Money And Securities a. We will pay for loss of "money" and "securi- ties" used in your business while at a bank or savings institution, within your living quar- ters or the living quarters of your partners or any employee having use and custody of the property, at the described premises, or in transit between any of these places, re- sulting directly from: (1) Theft, meaning any act of stealing; (2) Disappearance; or (3) Destruction. b. In addition to the Limitations and Exclusions applicable to Section I - Property, we will not pay for loss: (1) Resulting from accounting or arithmetical errors or omissions; (2) Due to the giving or surrendering of property in any exchange or purchase; or (3) Of property contained in any "money"- operated device unless the amount of "money" deposited in it is recorded by a continuous recording instrument in the device. c. The most we will pay for loss in any one occurrence is: (1) The limit shown in the Declarations for Inside the Premises for "money" and "se- curities" while: (a) In or on the described premises; or (b) Within a bank or savings institution; and (2) The limit shown in the Declarations for Outside the Premises for "money" and "securities" while anywhere else. d. All loss: (1) Caused by one or more persons; or (2) Involving a single act or series of related acts; is considered one occurrence. e. You must keep records of all "money" and "securities" so we can verify the amount of any loss or damage. 3. Employee Dishonesty a. We will pay for direct loss of or damage to Business Personal Property and "money" and "securities" resulting from dishonest acts committed by any of your employees acting alone or in collusion with other per- sons (except you or your partner) with the manifest intent to: (1) Cause you to sustain loss or damage; and also (2) Obtain financial benefit (other than sala- ries, commissions, fees, bonuses, pro- motions, awards, profit sharing, pensions or other employee benefits earned in the normal course of employment) for: (a) Any employee; or (b) Any other person or organization. b. We will not pay for loss or damage: (1) Resulting from any dishonest or criminal act that you or any of your partners or "members" commit whether acting alone or in collusion with other persons. (2) Resulting from any dishonest act com- mitted by any of your employees (except as provided in Paragraph a.), "manag- ers" or directors: (a) Whether acting alone or in collusion with other persons; or (b) While performing services for you or otherwise. (3) The only proof of which as to its exis- tence or amount is: (a) An inventory computation; or (b) A profit and loss computation. c. The most we will pay for loss or damage in any one occurrence is the Limit of Insurance for Employee Dishonesty shown in the Dec- larations. d. All loss or damage: (1) Caused by one or more persons; or (2) Involving a single act or series of acts; is considered one occurrence. e. If any loss is covered: (1) Partly by this insurance; and (2) Partly by any prior cancelled or termi- nated insurance that we or any affiliate had issued to you or any predecessor in interest; the most we will pay is the larger of the amount recoverable under this insurance or the prior insurance. We will pay only for loss or damage you sustain through acts committed or events occurring during the Policy Period. Regard- less of the number of years this policy re- mains in force or the number of premiums paid, no Limit of Insurance cumulates from year to year or period to period. f. This Optional Coverage is cancelled as to any employee immediately upon discovery by (1) 'You; or (2) Any of your partners, "members", "man- agers", officers or directors not in collu- sion with the employee; of any dishonest act committed by that em- ployee before or after being hired by you. g. We will pay only for covered loss or damage sustained during the policy period and dis- covered no later than one year from the end of the policy period. h. If you (or any predecessor in interest) sus- tained loss or damage during the policy pe- riod of any prior insurance that you could have recovered under that insurance except that the time within which to discover loss or damage had expired, we will pay for it under this Optional Coverage, provided: (1) This Optional Coverage became effec- tive at the time of cancellation or termi- nation of the prior insurance; and (2) The loss or damage would have been covered by this Optional Coverage had it been in effect when the acts or events causing the loss or damage were com- mitted or occurred. i. The insurance under Paragraph h. above is part of, not in addition to, the Limit of Insur- ance applying to this Optional Coverage and is limited to the lesser of the amount recov- erable under: (1) This Optional Coverage as of its effec- tive date; or (2) The prior insurance had it remained in effect. 4. Mechanical Breakdown a. We will pay for direct damage to Covered Property caused by an Accident to an Ob- ject. The Object must be: (1) Owned by you or in your care, custody or control; and (2) At the described premises. b. Accident means a sudden and accidental breakdown of the Object or a part of the Ob- ject. At the time the breakdown occurs, it must manifest itself by physical damage to the Object that necessitates repair or re- placement, c. None of the following is an Accident: (1) Depletion, deterioration, corrosion or erosion; (2) Wear and tear; (3) Leakage at any valve, fitting, shaft seal, gland packing, joint or connection; (4) Breakdown of any vacuum tube, gas tube or brush; (5) Breakdown of any "computer", including "computer(s)" used to operate production type machinery or equipment; (6) Breakdown of any structure or foundation supporting the Object or any of its parts; BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 23 of 43 ? (7) The functioning of any safety or protec- tive device; or (8) The explosion of gases or fuel within the furnace of any Object or within the flues or passages through which the gases of combustion pass. d. Object means any of the following equip- ment: (1) Boiler and Pressure Vessels: (a) Steam heating boilers and conden- sate return tanks used with them: (b) Hot water heating boilers and expan- sion tanks used with them; (c) Hot water supply boilers; (d) Other fired or unfired vessels used for maintenance or service of the de- scribed premises but not used for processing or manufacturing; (e) Steam boiler piping, valves, fittings, traps and separators, but only if they: (i) Are on your premises or between parts of your premises; (ii) Contain steam or condensate of steam; and (iii) Are not part of any other vessel or apparatus; (f) Feed water piping between any steam boiler and a feed pump or in- jector. (2) Air Conditioning Units - Any air condi- tioning unit that has a capacity of 60,000 Btu or more, including: (a) Inductors, convectors and coils that make use of a refrigerant and form part of a cooling, humidity control or space heating system; (b) Interconnecting piping, valves and fittings containing only a refrigerant, water, brine or other solution; (c) Vessels heated directly or indirectly that: (i) Form part of an absorption type system; and (ii) Function as a generator, regen- erator or concentrator; (d) Compressors, pumps, fans and blow- ers used solely with the system to- gether with their driving electric mo- tors; and (e) Control equipment used solely with the system. e. Object does not mean: (1) As Boiler and Pressure Vessels: (a) Equipment that is not under internal vacuum or internal pressure other than weight of contents: (b) Boiler settings: (c) Insulating or refractory material; or (d) Electrical, reciprocating or rotating apparatus within or forming a part of the boiler or vessel. (2) As Air Conditioning Units, any: (a) Vessel, cooling tower, reservoir or other source of cooling water for a condenser or compressor, or any wa- ter piping leading to or from that source: or (b) Wiring or piping leading to or from the unit. f. We will not pay for an Accident to any Ob- ject while being tested. g. Suspension Whenever an Object is found to be in, or exposed to, a dangerous condition, any of our representatives may immediately sus- pend the insurance against loss from an Ac- cident to that Object. This can be done by delivering or mailing a written notice of sus- pension to: (1) Your last known address; or (2) The address where the Object is located. If we suspend your insurance, you will get a pro rata refund of premium. But the suspen- sion will be effective even if we have not yet made or offered a refund. H. Property Definitions 1. "Computer" means: a. Programmable electronic equipment that is used to store, retrieve and process data; and b. Associated peripheral equipment that pro- vides communication, including input and output functions such as printing and auxil- iary functions such as data transmission. "Computer" does not include those used to op- erate production type machinery or equipment. 2. "Counterfeit" means an imitation of an actual valid original which is intended to deceive and to be taken as the original. 0 3. "Electronic media and records" means the following, if owned by you or licensed to you and used in your business: a. Media, meaning disks, tapes, film, drums, cells or other media which are used with electronically controlled equipment. b. Data, meaning information or facts stored on media described in Paragraph a. above. Data includes "valuable papers and records" converted to data. c. "Computer" program, meaning a set of related electronic instructions which direct the operations and functions of a "computer" or a device connected to it, which enable the "computer" or device to receive, proc- ess, restore, retrieve or send data. d. Software, including systems and applica- tions software. b. Does not include any increased period re- quired due to the enforcement of any ordi- nance or law that: (1) Regulates the construction, use or repair, or requires the tearing down of any prop- erty; or (2) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or assess the effects of "pollutants". The expiration date of this policy will not cut short the "period of restoration". 9. "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. 4. "Manager" means a person serving in a directo- 10. rial capacity for a limited liability company. 5. "Member" means an owner of a limited liability company represented by its membership inter- est, who also may serve as a "manager". 6. "Money" means: a. Currency, coins and bank notes in current use and having a face value; and b. Travelers checks, register checks and money orders held for sale to the public. 7. "Operations" means your business activities occurring at the described premises. 8. "Period of restoration": a. Means the period of time that: (1) Begins:: (a) 72 hours after the time of direct physical loss or damage for Business Income Coverage; or (b) Immediately after the time of direct physical loss or damage for Extra Expense Coverage; caused by or resulting from any Covered Cause of Loss at the described prem- ises; and (2) Ends on the earlier of: (a) The date when the property at the described premises should be re- paired, rebuilt or replaced with rea- sonable speed and similar quality; or (b) The date when business is resumed at a new permanent location. "Securities" means negotiable and non- negotiable instruments or contracts represent- ing either "money" or other property and in- cludes: a. Tokens, tickets, revenue and other stamps (whether represented by actual stamps or unused value in a meter) in current use; and b. Evidences of debt issued in connection with credit or charge cards, which cards are not issued by you; but does not include "money". 11. "Specified Causes of Loss" means the follow- ing: Fire; lightning; explosion; windstorm or hail; smoke; aircraft or vehicles; riot or civil commo- tion; vandalism; leakage from fire extinguishing equipment; sinkhole collapse; volcanic action; falling objects; weight of snow, ice or sleet; wa- ter damage. a. Sinkhole collapse means the sudden sinking or collapse of land into underground empty spaces created by the action of water on limestone or dolomite. This cause of loss does not include: (1) The cost of filling sinkholes; or (2) Sinking or collapse of land into man- made underground cavities. b. Falling objects does not include loss of or damage to: (1) Personal property in the open; or (2) The interior of a building or structure, or property inside a building or structure, unless the roof or an outside wall of the building or structure is first damaged by a falling object. BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 25 of 43 ? c. Water damage means accidental discharge b. This insurance applies: or leakage of water or steam as the direct (1) To "bodily injury" and "property damage" result of the breaking apart or cracking of only if: any part of a system or appliance (other than a sump system including its related (a) The "bodily injury" or "property dam- " " equipment and parts) containing water or occurrence age" is caused by an " steam. coverage ter- that takes place in the ritory"; 12. "Stock" means merchandise held in storage or for sale, raw materials and in-process or fin- (b) The "bodily injury" or "property dam- ished goods, including supplies used in their age" occurs during the policy period; packing or shipping. and 13. "Valuable papers and records" means: (c) Prior to the policy period, no insured under Paragraph C.1. Who Is listed a. Inscribed, printed or written: An Insured and no "employee" au- (1) Documents; thorized by you to give or receive no- (2) Manuscripts; and tice of an "occurrence" or claim, knew " " " property or bodily injury that the (3) Records; damage" had occurred, in whole or in including abstracts, books, deeds, drawings, part. If such a listed insured or au- films, maps or mortgages; and thorized "employee" knew, prior to " the policy period, that the "bodily in- . b. "Electronic media and records jury" or property damage occurred, But "valuable papers and records" does not then any continuation, change or re- mean "money" or "securities". sumption of such "bodily injury" or "property damage" during or after the SECTION II - LIABILITY policy period will be deemed to have been known before the policy period. A. Coverages (2) To ""personal and advertising injury" 1. Business Liability y caused by an offense arising out of your a. We will pay those sums that the insured business, but only if the offense was becomes legally obligated to pay as dam- committed in the "coverage territory" ages because of "bodily injury", "property during the policy period. damage" or "personal and advertising injury" " c. Bodily injury", or property damage" which to which this insurance applies. We will occurs during the policy period and was not, - have the right and duty to defend the in- to the policy period, known to have oc- prior sured against any "suit" seeking those dam- curred by any insured listed under Para- ages. However, we will have no duty to de- ages. C.1. Who Is An Insured or any "em- fend the insured against any „suit seeking ployee„ authorized by you to give or receive damages for „bodily injury„, „property dam- notice of an occurrence or claim, includes "occurrence" age" or "personal and advertising injury", to any continuation, change or resumption of which this insurance does not apply. We "bodily injury" or "property damage" after the may at our discretion, investigate any "oc- end of the period. policy currence" and settle any claim or "suit" that "Bodily injury" or "property damage" will be d may result. But: . to have been known to have oc- deemed (1) The amount we will pay for damages is curred at the earliest time when any insured limited as described in Paragraph D - under Paragraph C.I. Who Is An In- listed Liability And Medical Expenses Limits Of sured or any "employee" authorized by you Insurance in Section II -Liability; and to give or receive notice of an "occurrence" (2) Our right and duty to defend end when or claim: we have used up the applicable limit of (1) Reports all, or any part, of the "bodily insurance in the payment of judgments injury" or "property damage" to us or any or settlements or medical expenses. other insurer; No other obligation or liability to pay sums (2) Receives a written or verbal demand or or perform acts or services is covered claim for damages because of the "bod- unless explicitly provided for under Para- ily injury" or "property damage"; or graph f. Coverage Extension - Supplemen- tary Payments. 0 (3) Becomes aware by any other means that (a) The "suit" against the indemnitee "bodily injury" or "property damage" has seeks damages for which the insured occurred or has begun to occur. has assumed the liability of the in- e. Damages because of "bodily injury" include demnitee in a contract or agreement damages claimed by any person or organi- that is an "insured contract"; zation for care, loss of services or death re- (b) This insurance applies to such liability sulting at any time from the "bodily injury". assumed by the insured; f. Coverage Extension - Supplementary (c) The obligation to defend, or the cost Payments of the defense of, that indemnitee, (1) In addition to the Limit of Insurance of has also been assumed by the in- Section II - Liability we will pay, with sured in the same "insured contract"; respect to any claim we investigate or (d) The allegations in the "suit" and the settle, or any "suit" against an insured we information we know about the "oc- defend:: currence" are such that no conflict (a) All expenses we incur. appears to exist between the interests of the insured and the interests of the (b) Up to $250 for cost of bail bonds indemnitee: required because of accidents or traf- fic law violations arising out of the (e) The indemnitee and the insured ask use of any vehicle to which Business us to conduct and control the defense Liability Coverage for "bodily injury" of that indemnitee against such "suit" applies. We do not have to furnish and agree that we can assign the these bonds. same counsel to defend the insured and the indemnitee; and (c) The cost of bonds to release attach- ments, but only for bond amounts (f) The indemnitee: within our Limit of Insurance. We do (i) Agrees in writing to: not have to furnish these bonds. i. Cooperate with us in the inves- (d) All reasonable expenses incurred by tigation, settlement or defense the insured at our request to assist us of the "suit"; in the investigation or defense of the " " ii. Immediately send us copies of claim or suit , including actual loss any demands notices sum- of earnings up to $250 a day because , , monses or legal papers re- of time off from work. ceived in connection with the (e) All costs taxed against the insured in "suit"; the "suit". iii. Notify any other insurer whose (f) Prejudgment interest awarded coverage is available to the against the insured on that part of the indemnitee; and judgment we pay. If we make an offer iv. Cooperate with us with respect to pay the Limit of Insurance, we will to coordinating other applica- not pay any prejudgment interest ble insurance available to the based on that period of time after the indemnitee; and offer. (g) All interest on the full amount of any (ii) Provides us with written authoriza- judgment that accrues after entry of tion to: the judgment and before we have i. Obtain records and other in- paid, offered to pay, or deposited in formation related to the "suit"; court the part of the judgment that is and within our Limit of Insurance. ii. Conduct and control the de- (2) If we defend an insured against a "suit" fense of the indemnitee in and an indemnitee of the insured is also such "suit". named as a party to the "suit", we will defend that indemnitee if all of the fol- lowing conditions are met: BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 27 of 43 ? (3) So long as the conditions in Paragraph 2. are met, attorneys' fees incurred by us in the defense of that indemnitee, neces- sary litigation expenses incurred by us and necessary litigation expenses in- curred by the indemnitee at our request will be paid as Supplementary Pay- ments. Notwithstanding the provisions of Paragraph B.1.b.(2) Exclusions in Sec- tion II - Liability, such payments will not be deemed to be damages for "bod- ily injury" and "property damage" and will not reduce the limits of insurance. Our obligation to defend an insured's in- demnitee and to pay for attorneys' fees and necessary litigation expenses as Supplementary Payments ends when: (a) We have used up the applicable limit of insurance in the payment of judg- ments or settlements; or (b) The conditions set forth above, or the terms of the agreement described in Paragraph 2.f. above are no longer met. 2. Medical Expenses a. We will pay medical expenses as described below for "bodily injury" caused by an acci- dent: (1) On premises you own or rent; (2) On ways next to premises you own or rent; or (3) Because of your operations; provided that: (a) The accident takes place in the "cov- erage territory" and during the policy period; (b) The expenses are incurred and re- ported to us within one year of the date of the accident; and (c) The injured person submits to exami- nation, at our expense, by physicians of our choice as often as we rea- sonably require. b. We will make these payments regardless of fault. These payments will not exceed the Limits of Insurance of Section II - Liability. We will pay reasonable expenses for: (1) First aid administered at the time of an accident; (2) Necessary medical, surgicai, x-ray aru; dental services, including prosthetic de- vices; and (3) Necessary ambulance, hospital, profes- sional nursing and funeral services. B. Exclusions Applicable To Business Liability Coverage This insurance does not apply to: a. Expected Or Intended Injury "Bodily injury" or "property damage" ex- pected or intended from the standpoint of the insured. This exclusion does not apply to "bodily injury" resulting from the use of rea- sonable force to protect persons or property. b. Contractual Liability "Bodily injury" or "property damage" for which the insured is obligated to pay dam- ages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages: (1) That the insured would have in the ab- sence of the contract or agreement; or (2) Assumed in a contract or agreement that is an "insured contract", provided the "bodily injury" or "property damage" oc- curs subsequent to the execution of the contract or agreement. Solely for the purposes of liability assumed in an "in- sured contract", reasonable attorney fees and necessary litigation expenses in- curred by or for a party other than an in- sured are deemed to be damages be- cause of "bodily injury" or "property damage", provided: (a) Liability to such party for, or for the cost of, that party's defense has also been assumed in the same "insured contract"; and (b) Such attorney fees and litigation expenses are for defense of that party against a civil or alternative dispute resolution proceeding in which damages to which this insur- ance applies are alleged. on..0 95t of AA 0 ISO Properties, Inc., 2001 BP 00 03 07 02 c. Liquor Liability "Bodily injury" or "property damage" for which any insured may be held liable by reason of: (1) Causing or contributing to the intoxica- tion of any person; (2) The furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or (3) Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages. This exclusion applies only if you are in the business of manufacturing, distributing, sell- ing, serving or furnishing alcoholic bever- ages. d. Workers' Compensation And Similar Laws Any obligation of the insured under a work- ers' compensation, disability benefits or un- employment compensation law or any simi- lar law. e. 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 con- duct of the insured's business; or (2) The spouse, child, parent, brother or sister of that "employee" as a conse- quence 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 damages because of the injury. This exclusion does not apply to liability as- sumed by the insured under an "insured contract". f. Pollution (1) "Bodily injury" or "property damage" arising out of the actual, alleged or threatened discharge, dispersal, seep- age, migration, release or escape of "pollutants": (a) At or from any premises, site or loca- tion which is or was at any time owned or occupied by, or rented or loaned to, any insured. However, this subparagraph does not apply to: (i) "Bodily injury" if sustained within a building and caused by smoke, fumes, vapor or soot from equip- ment used to heat that building; (ii) "Bodily injury" or "property dam- age" for which you may be held li- able, if you are a contractor and the owner or lessee of such prem- ises, site or location has been added to your policy as an addi- tional insured with respect to your ongoing operations performed for that additional insured at that premises, site or location and such premises, site or location is not and never was owned or oc- cupied by, or rented or loaned to, any insured, other than that addi- tional insured; or (iii) "Bodily injury" or "property dam- age" arising out of heat, smoke or fumes from a "hostile fire"; (b) At or from any premises, site or loca- tion which is or was at any time used by or for any insured or others for the handling, storage, disposal, process- ing or treatment of waste; (c) Which are or were at any time trans- ported, handled, stored, treated, dis- posed of, or processed as waste by or for: (i) Any insured; or (ii) Any person or organization for whom you may be legally respon- sible; or (d) At or from any premises, site or loca- tion on which any insured or any con- tractors or subcontractors working di- rectly or indirectly on any insured's behalf are performing operations if the "pollutants" are brought on or to the premises, site or location in con- nection with such operations by such insured, contractor or subcontractor. However, this subparagraph does not apply to: BP 00 03 07 02 © ISO Properties, Inc., 2001 Page 29 of 43 ? (i) "Bodily injury" or "property dam- (b) Claim or "suit" by or on behalf of a age" arising out of the escape of governmental authority for damages fuels, lubricants or other operating because of testing for, monitoring, fluids which are needed to per- cleaning up, removing, containing, form the normal electrical, hy- treating, detoxifying or neutralizing, draulic or mechanical functions or in any way responding to, or as- necessary for the operation of sessing the effects of. "pollutants". "mobile equipment" or its parts, if However, this paragraph does not apply such fuels, lubricants or other op- to liability for damages because of "prop- erating fluids escape from a vehi- erty damage" that the insured would cle part designed to hold, store or have in the absence of such request, receive them. This exception does demand, order or statutory or regulatory not apply if the "bodily injury" or requirement or such claim or "suit" by or "property damage" arises out of on behalf of a governmental authority. the intentional discharge, disper- sal or release of the fuels, lubri- g. Aircraft, Auto Or Watercraft cants or other operating fluids, or "Bodily injury" or "property damage" arising if such fuels, lubricants or other out of the ownership, maintenance, use or operating fluids are brought on or entrustment to others of any aircraft, "auto" to the premises, site or location or watercraft owned or operated by or rented with the intent that they be dis- or loaned to any insured. Use includes op- charged, dispersed or released as eration and "loading or unloading". part of the operations being per- This exclusion applies even if the claims al- formed by such insured, contrac- lege negligence or other wrongdoing in the for or subcontractor; supervision, hiring, employment, training or (ii) "Bodily injury" or "property dam- monitoring of others by an insured, if the age" sustained within a building "occurrence" which caused the "bodily in- and caused by the release of jury" or "property damage" involved the gases, fumes or vapors from ma- ownership, maintenance, use or entrustment terials brought into that building in to others of any aircraft, "auto" or watercraft connection with operations being that is owned or operated by or rented or performed by you or on your be- loaned to any insured. half by a contractor or subcontrac- This exclusion does not apply to: tor; or " (1) A watercraft while ashore on premises property dam- (ui) "Bodily injury" or ; you own or rent', age arising out of heat, smoke or fumes from a "hostile fire". (2) A watercraft you do not own that is: (e) At or from any premises, site or loca- (a) Less than 51 feet long; and tion on which any insured or any con- (b) Not being used to carry persons or tractors or subcontractors working di- property for a charge; rectly or indirectly on any insured's (3) Parking an '°auto'" on, or on the ways behalf are performing operations if premises you own or rent, pro- next to the operations are to test for, monitor, , vided the "auto" is not owned by or clean up, remove, contain, treat, de- rented or loaned to you or the insured; toxify or neutralize, or in any way re- spond to, or assess the effects of, (4) Liability assumed under any "insured "pollutants". contract" for the ownership, maintenance (2) Any loss, cost or expense arising out of or use of aircraft or watercraft; or any: (5) "Bodily injury" or "property damage" arising out of the operation of any of the (a) Request, demand, order or statutory following equipment: or regulatory requirement that any in- sured or others test for, monitor, (a) Cherry pickers and similar devices clean up, remove, contain, treat, de- mounted on automobile or truck toxify or neutralize, or in any way re- chassis and used to raise or lower spond to, or assess the effects of, workers; and "pollutants"; or 0 (b) Air compressors, pumps and genera- tors, including spraying, welding, building cleaning, geophysical explo- ration, lighting and well servicing equipment. h. Mobile Equipment "Bodily injury" or "property damage" arising out of: (1) The transportation of "mobile equipment" by an "auto" owned or operated by or rented or loaned to any insured; or (2) The use of "mobile equipment" in, or while in practice for, or while being pre- pared for, any prearranged racing, speed, demolition or stunting activity. i. War "Bodily injury" or "property damage" due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. This exclusion applies only to liability as- sumed under a contract or agreement. j. Professional Services "Bodily injury", "property damage", "personal and advertising injury" caused by the ren- dering or failure to render any professional service. This includes but is not limited to: (1) Legal, accounting or advertising ser- vices; (2) Preparing, approving, or failing to pre- pare or approve maps, drawings, opin- ions, reports, surveys, change orders, designs or specifications; (3) Supervisory, inspection or engineering services; (4) Medical, surgical, dental, x-ray or nurs- ing services treatment, advice or instruc- tion; (5) Any health or therapeutic service treat- ment, advice or instruction; (6) Any service, treatment, advice or instruc- tion for the purpose of appearance or skin enhancement, hair removal or re- placement or personal grooming; (7) Optometry or optical or hearing aid ser- vices including the prescribing, prepara- tion, fitting, demonstration or distribution of ophthalmic lenses and similar prod- ucts or hearing aid devices; (8) Body piercing services; and (9) Services in the practice of pharmacy. k. Damage To Property "Property damage" to: (1) Property you own, rent or occupy, includ- ing any costs or expenses incurred by you, or any other person, organization or entity, for repair, replacement, en- hancement, restoration or maintenance of such property for any reason, includ- ing prevention of injury to a person or damage to another's property; (2) Premises you sell, give away or aban- don, if the "property damage" arises out of any part of those premises; (3) Property loaned to you; (4) Personal property in the care, custody or control of the insured; (5) That particular part of real property on which you or any contractor or subcon- tractor working directly or indirectly on your behalf is performing operations, if the "property damage" arises out of those operations; or (6) That particular part of any property that must be restored, repaired or replaced because "your work" was incorrectly per- formed on it. Paragraphs (1), (3) and (4) of this exclusion do not apply to "property damage" (other than damage by fire or explosion) to prem- ises, including the contents of such prem- ises, rented to you for a period of 7 or fewer consecutive days. A separate limit of insur- ance applies to Damage To Premises Rented To You as described in Paragraph D. Liability And Medical Expenses Limit Of Insurance in Section II - Liability. Paragraph (2) of this exclusion does not ap- ply if the premises are "your work" and were never occupied, rented or held for rental by you. Paragraphs (3), (4), (5) and (6) of this ex- clusion do not apply to liability assumed un- der a sidetrack agreement. Paragraph (6) of this exclusion does not ap- ply to "property damage" included in the "products - completed operations hazard". 1. Damage To Your Product "Property damage" to "your product" arising out of it or any part of it. m. Damage To Your Work "Property damage" to "your work" arising out of it or any part of it and included in the "products - completed operations hazard". BP 00 03 07 02 © ISO Properties, Inc., 2001 Page 31 of 43 ? This exclusion does not apply if the dam- aged work or the work out of which the dam- age arises was performed on your behalf by a subcontractor. n. Damage To Impaired Property Or Property Not Physically Injured "Property damage" to "impaired property" or property that has not been physically in- jured, arising out of: (1) A defect, deficiency, inadequacy or dan- gerous condition in "your product" or "your work"; or (2) A delay or failure by you or anyone act- ing on your behalf to perform a contract or agreement in accordance with its terms. This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to "your prod- uct" or "your work" after it has been put to its intended use. o. Recall Of Products, Work Or Impaired Property Damages claimed for any loss, cost or ex- pense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or dis- posal of: (1) "Your product"; (2) "Your work"; or (3) "Impaired property"; if such product, work or property is with- drawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it. p. Personal And Advertising Injury "Personal and advertising injury": (1) Caused by or at the direction of the in- sured with the knowledge that the act would violate the rights of another and would inflict "personal and advertising in- jury"; (2) Arising out of oral or written publication of material, if done by or at the direction of the insured with knowledge of its fal- sity; (3) Arising out of oral or written publication of material whose first publication took place before the beginning of the policy period; (4) Arising out of a criminal act committed by or at the direction of any insured; (5) For which the insured has assumes; liability in a contract or agreement. This exclusion does not apply to liability for damages that the insured would have in the absence of the contract or agree- ment: (6) Arising out of a breach of contract, ex- cept an implied contract to use another's advertising idea in your "advertisement` (7) Arising out of the failure of goods. prod- ucts or services to conform with any statement of quality or performance made in your "advertisement"; (8) Arising out of the wrong description of the price of goods, products or services stated in your "advertisement'"; (9) Committed by an insured whose busi- ness is: (a) Advertising, broadcasting, publishing or telecasting; (b) Designing or determining content of web-sites for others; or (c) An Internet search, access, content or service provider. However, this exclusion does not apply to Paragraphs 14.a., b. and c. of "per- sonal and advertising injury" under Para- graph F. Liability And Medical Expenses Definitions. For the purposes of this exclusion, the placing of frames, borders or links, or advertising, for you or others anywhere on the Internet, by itself, is not consid- ered the business of advertising, broad- casting, publishing or telecasting. (10) Arising out of the actual, alleged or threatened discharge, dispersal, seep- age, migration, release or escape of "pollutants" at any time. (11) With respect to any loss, cost or expense arising out of any: (a) Request, demand or order that any insured or others test for, monitor, clean-up, remove, contain, treat, de- toxify or neutralize or in any way re- spond to, or assess the effects of, "pollutants"; or (b) Claim or "suit" by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing or in any way responding to, or assess- ing the effects of, "pollutants". 0 (12) Arising out of an electronic chatroom or bulletin board the insured hosts, owns or over which the insured exercises control. (13) Arising out of the infringement of copy- right, patent, trademark, trade secret or other intellectual property rights. However, this exclusion does not apply to infringement, in your "advertisement", of copyright, trade dress or slogan. (14) Arising out of the unauthorized use of another's name or product in your e-mail address, domain name or metatags, or any other similar tactics to mislead an- other's potential customers. Exclusions c., d., e., f., g., h., i., k., I., m., n. and o. in Section II - Liability do not apply to damage by fire or explosion to premises while rented to you, or temporarily occupied by you with permission of the owner. A separate Dam- age To Premises Rented To You Limit of Insur- ance applies to this coverage as described in Paragraph D. Liability And Medical Expenses Limits of Insurance in Section II - Liability. 2. Applicable To Medical Expenses Coverage We will not pay expenses for "bodily injury": a. To any insured, except "volunteer workers". b. To a person hired to do work for or on behalf of any insured or a tenant of any insured. c. To a person injured on that part of premises you own or rent that the person normally oc- cupies. d. To a person, whether or not an "employee" of any insured, if benefits for the "bodily in- jury" are payable or must be provided under a workers' compensation or disability bene- fits law or a similar law. e. To a person injured while taking part in athletics. f. Included within the "products - completed operations hazard". g. Excluded under Business Liability Cover- age. h. Due to war, whether or not declared, or any act or condition incident to war. War in- cludes civil war, insurrection, rebellion or revolution. 3. Applicable To Both Business Liability Coverage And Medical Expenses Coverage - Nuclear Energy Liability Exclusion This insurance does not apply: a. Under Business Liability Coverage, to "bod- ily injury" or "property damage": (1) With respect to which an insured under the policy is also an insured under a nu- clear energy liability policy issued by the Nuclear Energy Liability Insurance Asso- ciation, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Asso- ciation of Canada, or would be an in- sured under any such policy but for its termination upon exhaustion of its limit of liability; or (2) Resulting from the "hazardous proper- ties" of "nuclear material" and with re- spect to which: (a) Any person or organization is re- quired to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof; or (b) The insured is, or had this policy not been issued would be, entitled to in- demnity from the United States of America, or any agency thereof, un- der any agreement entered into by the United States of America, or any agency thereof, with any person or organization. b. Under Medical Expenses Coverage, to expenses incurred with respect to "bodily in- jury" resulting from the "hazardous proper- ties" of "nuclear material" and arising out of the operation of a "nuclear facility" by any person or organization. c. Under Business Liability Coverage, to "bod- ily injury" or "property damage" resulting from the "hazardous properties" of the "nu- clear material"; if: (1) The "nuclear material": (a) Is at any "nuclear facility" owned by, or operated by or on behalf of, an in- sured; or (b) Has been discharged or dispersed therefrom; (2) The "nuclear material" is contained in "spent fuel" or "waste" at any time pos- sessed, handled, used, processed, stored, transported or disposed of by or on behalf of an insured; or BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 33 of 43 ? (3) The "bodily injury" or "property damage" arises out of the furnishing by an insured of services, materials, parts or equip- ment in connection with the planning, construction, maintenance, operation or use of any "nuclear facility"; but if such facility is located within the United States of America, its territories or possessions or Canada, this Exclusion (3) applies only to "property damage" to such "nu- clear facility" and any property thereat. d. As used in this exclusion: (1) "By-product material" has the meaning given it in the Atomic Energy Act of 1954 or in any law amendatory thereof; (2) "Hazardous properties" include radioac- tive, toxic or explosive properties; (3) "Nuclear facility" means: (a) Any "nuclear reactor"; (b) Any equipment or device designed or used for: (i) Separating the isotopes of ura- nium or plutonium; (ii) Processing or utilizing "spent fuel"; or (iii) Handling, processing or packaging "waste"; (c) Any equipment or device used for the processing, fabricating or alloying of "special nuclear material" if at any time the total amount of such mate- rial 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 plu- tonium or uranium 233 or any combi- nation 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 foregoing is located, all operations con- ducted on such site and all premises used for such operations; (4) "Nuclear material" means "source mate- rial", "special nuclear material" or "by- product material"; (5) "Nuclear reactor" means any apparatus designed or used to sustain nuclear fis- sion in a self-supporting chain reaction or to contain a critical mass of fissionable material; (6) "Property damage" includes all forms of radioactive contamination of property, (7) "Source material" has the meaning given it in the Atomic Energy Act of 1954 or in any law amendatory thereof; (8) "Special nuclear material" has the mean- ing given it in the Atomic Energy Act of 1954 or in any law amendatory thereof; (9) "Spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a "nuclear reactor"; (10) "Waste" means any waste material: (a) Containing "by-product material" other than the tailings or wastes pro- duced 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 organization of any "nu- clear facility" included under Para- graphs (a) and (b) of the definition of "nuclear facility". C. Who Is An Insured 1. If you are designated in the Declarations as a. An individual, you and your spouse are insureds, but only with respect to the con- duct of a business of which you are the sole owner. b. A partnership or joint venture, you are an insured. Your members, your partners and their spouses are also insureds, but only with respect to the conduct of your business. c. A limited liability company, you are an in- sured. 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 offi- cers" and directors are insureds, but only with respect to their duties as your officers or directors. Your stockholders are also in- sureds, but only with respect to their liability as stockholders. 2. Each of the following is also an insured: a. Your "volunteer workers" only while per- forming duties related to the conduct of your business, or your "employees", other than either your "executive 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 com- pany), but only for acts within the scope of their employment by you or while perform- ing duties related to the conduct of your business. However, none of these "employ- ees" or "volunteer workers" are insureds for: (1) "Bodily injury" or "personal and advertis- ing injury": (a) To you, to your partners or members (if you are a partnership or joint ven- ture), to your members (if you are a limited liability company), or to a co- "employee" while in the course of his or her employment or performing du- ties related to the conduct of your business, or to your other "volunteer workers" while performing duties re- lated to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co-"employee" as a consequence of Paragraph (a) above; (c) For which there is any obligation to share damages with or repay some- one else who must pay damages be- cause of the injury described in Para- graphs (a) or (b); or (d) Arising out of his or her providing or failing to provide professional health care services. (2) "Property damage" to property: (a) Owned, occupied or used by, (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any pur- pose by you, any of your "employees", "volunteer workers", any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). b. Any person (other than your "employee" or "volunteer worker"), or any organization while acting as your real estate manager. c. 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. d. Your legal representative if you die, but only with respect to duties as such. That repre- sentative will have all your rights and duties under this policy. 3. With respect to "mobile equipment" registered in your name under any motor vehicle registra- tion law, any person is an insured while driving such equipment along a public highway with your permission. Any other person or organiza- tion responsible for the conduct of such person is also an insured, but only with respect to liabil- ity arising out of the operation of the equipment, and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an insured with respect to: a. "Bodily injury" to a co-"employee" of the person driving the equipment; or b. "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an insured under this provision. No person or organization is an insured with re- spect to the conduct of any current or past part- nership, joint venture or limited liability com- pany that is not shown as a Named Insured in the Declarations. D. Liability And Medical Expenses Limits Of Insurance 1. The Limits of Insurance of Section II - Liabil- ity shown in the Declarations and the rules be- low fix the most we will pay regardless of the number of: a. Insureds; b. Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suits". 2. The most we will pay for the sum of all dam- ages because of all: a. "Bodily injury", "property damage" and medi- cal expenses arising out of any one "occur- rence"; and BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 35 of 43 ? b. "Personal and advertising injury" sustainers by any one person or organization; is the Liability and Medical Expenses limit shown in the Declarations. But the most we will pay for all medical expenses because of "bodily injury" sustained by any one person is the Medi- cal Expenses limit shown in the Declarations. 3. The most we will pay under Business Liability Coverage for damages because of "property damage" to premises while rented to you or temporarily occupied by you with permission of the owner, arising out of any one fire or explo- sion is the Damage To Premises Rented To You limit shown in the Declarations. 4. Aggregate Limits The most we will pay for: a. All "bodily injury" or "property damage" that is included in the "products-completed op- erations hazard" is twice the Liability and Medical Expenses limit; and b. All: (1) "Bodily injury" or "property damage" except damages because of "bodily in- jury" and "property damage" included in the "products-completed operations haz- ard"; (2) Plus medical expenses; (3) Plus all "personal and advertising injury" caused by offenses committed; is twice the Liability and Medical Expenses limit. This Aggregate Limit does not apply to "prop- erty damage" to premises while rented to you or temporarily occupied by you with the permis- sion of the owner, arising out of fire or explo- sion. The Limits of Insurance of Section II - Liability 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 ad- ditional period will be deemed part of the last pre- ceding period for purposes of determining the Lim- its of Insurance. E. Liability And Medical Expenses General Conditions 1. Bankruptcy Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our ob- ligations under this policy. 2. Duties In The Event Of Occurrence, Offense, Claim Or Suit a. You must see to it that we are notified as soon as practicable of an "occurrence" or an offense which may result in a claim. To the extent possible, notice should include: (1) How, when and where the "occurrence" or offense took place; (2) The names and addresses of any injured persons and witnesses; and (3) The nature and location of any injury or damage arising out of the "occurrence" or offense. 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 notice of the claim or "suit" as soon as prac- ticable. 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 per- son or organization that may be liable to the insured because of injury or damage to which this insurance 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. Financial Responsibility Laws a. When this policy is certified as proof of financial responsibility for the future under the provisions of any motor vehicle financial responsibility law, the insurance provided by the policy for "bodily injury" liability and "property damage" liability will comply with the provisions of the law to the extent of the coverage and limits of insurance required by that law. b. With respect to "mobile equipment" to which this insurance applies, we will provide any liability, uninsured motorists, underinsured motorists, no-fault or other coverage re- quired by any motor vehicle law. We will provide the required limits for those cover- ages. 4. Legal Action Against Us No person or organization has a right under this policy: a. To join us as a party or otherwise bring us into a "suit" asking for damages from an in- sured; or b. To sue us on this policy 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 liable for damages that are not payable under the terms of this policy or that are in excess of the appli- cable limit of insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal representative. 5. Separation Of Insureds Except with respect to the Limits of Insurance of Section II - Liability, and any rights or du- ties specifically assigned in this policy to the first Named Insured, this insurance 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. F. Liability And Medical Expenses Definitions 1. "Advertisement" means a notice that is broad- cast or published to the general public or spe- cific market segments about your goods, prod- ucts or services for the purpose of attracting customers or supporters. For the purposes of this definition: a. Notices that are published include material placed on the Internet or on similar elec- tronic means of communication; and b. Regarding web-sites, only that part of a web-site that is about your goods, products or services for the purposes of attracting customers or supporters is considered an advertisement. 3. "Bodily injury" means bodily injury, sickness or disease sustained by a person, including death resulting from any of these at any time. 4. "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 or damage occurs in the course of travel or transportation between any places included in Paragraph a. above; or c. All other parts of the world if the injury or damage arises out of: (1) Goods or products made or sold by you in the territory described in Paragraph a. above; (2) The activities of a person whose home is in the territory described in Paragraph a. above, but is away for a short time on your business; or (3) "Personal and advertising injury" of- fenses that take place through the Inter- net or similar electronic means of com- munication; provided the insured's responsibility to pay damages is determined in a "suit" on the merits in the territory described in Para- graph a. above or in a settlement we agree to. 5. "Employee" includes a "leased worker". "Em- ployee" does not include a "temporary worker". 6. "Executive officer" means a person holding any of the officer positions created by your charter, constitution, by-laws or any other similar gov- eming document. 7. "Hostile fire" means one which becomes uncon- trollable or breaks out from where it was in- tended to be. 8. "Impaired property" means tangible property, other than "your product" or "your work", that cannot be used or is less useful because: a. It incorporates "your product" or "your work" that is known or thought to be defective, de- ficient, inadequate or dangerous; or b. You have failed to fulfill the terms of a con- tract or agreement; if such property can be restored to use by: 2. "Auto" means a land motor vehicle, trailer or (1) The repair, replacement, adjustment or semitrailer designed for travel on public roads, removal of "your product" or "your work"; including any attached machinery or equip- or ment. But "auto" does not include "mobile (2) Your fulfilling the terms of the contract or equipment". agreement. BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 37 of 43 9. "Insured contract" means: (3) Under which the insured, if an architect. a. A contract for a lease of premises. However, engineer or surveyor. assumes liability that portion of the contract for a lease of for an injury or damage arising out of the premises that indemnifies any person or or- insured's rendering or failure to render ganization for damage by fire to premises professional services, including those while rented to you or temporarily occupied listed in Paragraph (2) above and super- by you with permission of the owner is not visory, inspection or engineering ser- an "insured contract"; vices. b. A sidetrack agreement; c. Any easement or license agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; d. An obligation, as required by ordinance, to indemnify a municipality, except in connec- tion with work for a municipality; e. An elevator maintenance agreement; f. 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) un- der which you assume the tort liability of an- other party to pay for "bodily injury" or "prop- erty damage" to a third person or organization. Tort liability means a liability that would be imposed by law in the ab- sence of any contract or agreement. Paragraph f. does not include that part of any contract or agreement: (1) That indemnifies a railroad for "bodily injury" or "property damage" arising out of construction or demolition operations, within 50 feet of any railroad property and affecting any railroad bridge or tres- tle, tracks, road beds, tunnel, underpass or crossing; (2) That indemnifies an architect, engineer or surveyor for injury or damage arising out of: (a) Preparing, approving or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications; or (b) Giving directions or instructions, or failing to give them, if that is the pri- mary cause of the injury or damage; or 10. "Leased worker" means a person leased to you by a labor leasing firm under an agreement be- tween you and the labor leasing firm, to per- form duties related to the conduct of your busi- ness. "Leased worker" does not include a "temporary worker". 11. "Loading or unloading" means the handling of property: a. After it is moved from the place where it is accepted for movement into or onto an air- craft, watercraft or "auto"; b. While it is in or on an aircraft, watercraft or "auto"; or c. While it is being moved from an aircraft, watercraft or "auto" to the place where it is finally delivered; but "loading or unloading" does not include the movement of property by means of a mechani- cal device, other than a hand truck, that is not attached to the aircraft, watercraft or "auto". 12. "Mobile equipment" means any of the following types of land vehicles, including any attached machinery or equipment: a. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; b. Vehicles maintained for use solely on or next to premises you own or rent; c. Vehicles that travel on crawler treads; d. Vehicles, whether self-propelled or not, on which are permanently mounted: (1) Power cranes, shovels, loaders, diggers or drills; or (2) Road construction or resurfacing equip- ment such as graders, scrapers or roll- ers; e. Vehicles not described in Paragraphs a., b., c. or d. above that are not self-propelled and are maintained primarily to provide mo- bility to permanently attached equipment of the following types: (1) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, light- ing and well servicing equipment; or (2) Cherry pickers and similar devices used to raise or lower workers; f. Vehicles not described in Paragraphs a., b., c. or d. above maintained primarily for pur- poses other than the transportation of per- sons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not "mobile equipment" but will be considered "autos": (1) Equipment designed primarily for: (a) Snow removal; (b) Road maintenance, but not construc- tion or resurfacing; or (c) Street cleaning; (2) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and (3) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, light- ing and well servicing equipment. 13. "Occurrence" means an accident, including continuous or repeated exposure to substan- tially the same general harmful conditions. 14. "Personal and advertising injury" means injury, including consequential "bodily injury", arising out of one or more of the following offenses: a. False arrest, detention or imprisonment; b. Malicious prosecution; c. The wrongful eviction from, wrongful entry into, or invasion of the right of private occu- pancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; d. Oral or written publication, in any manner, of material that slanders or libels a person or organization or disparages a person's or or- ganization's goods, products or services; e. Oral or written publication, in any manner, of material that violates a person's right of pri- vacy; f. The use of another's advertising idea in your "advertisement"; or g. Infringing upon another's copyright, trade dress or slogan in your "advertisement". 15. "Pollutants" mean 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. 16. "Products - completed operations hazard": a. Includes all "bodily injury" and "property damage" occurring away from premises you own or rent and arising out of "your product" or "your work" except: (1) Products that are still in your physical possession; or (2) Work that has not yet been completed or abandoned. However, "your work" will be deemed completed at the earliest of the following times: (a) When all of the work called for in your contract has been completed. (b) When all of the work to be done at the job site has been completed if your contract calls for work at more than one job site. (c) When that part of the work done at the job site has been put to its in- tended use by any other person or organization other than another con- tractor or subcontractor working on the same project. Work that may need service, mainte- nance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. The "bodily injury" or "property damage" must occur away from premises you own or rent, unless your business includes the sell- ing, handling or distribution of "your product" for consumption on premises you own or rent. b. Does not include "bodily injury" or "property damage" arising out of: (1) The transportation of property, unless the injury or damage arises out of a condi- tion in or on a vehicle not owned or op- erated by you, and that condition was created by the "loading or unloading" of that vehicle by any insured; or (2) The existence of tools, uninstalled equipment or abandoned or unused ma- terials. 17. "Property damage" means: a. Physical injury to tangible property, includ- ing all resulting loss of use of that property. All such loss of use shall be deemed to oc- cur 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 "oc- currence" that caused it. BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 39 of 43 ? For the purposes of this insurance, electronic data is not tangible property. As used in this definition, electronic data means information, facts or programs stored as, cre- ated or used on, or transmitted to or from com- puter software, including systems and applica- tions software, hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other media which are used with electroni- cally controlled equipment. 18. "Suit" means a civil proceeding in which dam- ages because of "bodily injury", "property dam- age", "personal and advertising injury" to which this insurance applies are alleged. "Suit" in- cludes: a. An arbitration proceeding in which such damages are claimed and to which the in- sured must submit or does submit with our consent; or b. Any other alternative dispute resolution proceeding in which such damages are claimed and to which the insured submits with our consent. 19. "Temporary worker" means a person who is furnished to you to substitute for a permanent "employee" on leave or to meet seasonal or short-term workload conditions. 20. "Volunteer worker" means a person who is not your "employee", and who donates his or her work and acts at the direction of and within the scope of duties determined by you, and is not paid a fee, salary or other compensation by you or anyone else for their work performed for you. 21. "Your product": a. Means: (1) Any goods or products, other than real property, manufactured, sold, handled, distributed 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), materi- als, parts or equipment furnished in con- nection with such goods or products. b. Includes: (1) Warranties or representations made at any time with respect to the fitness, qual- ity, durability, performance or use of "your product"; and (2) The providing of or failure to provide warnings or instructions. c. Does not include vending machines or, other property rented to or located for the use of others but not sold. 22. "Your work": a. Means: (1) Work or operations performed by you or on your behalf; and (2) Materials, parts or equipment furnished in connection with such work or opera- tions. b. Includes: (1) Warranties or representations made at any time with respect to the fitness, qual- ity, durability, performance or use of "your work"; and (2) The providing of or failure to provide warnings or instructions. SECTION III - COMMON POLICY CONDITIONS (APPLICABLE TO SECTION I - PROPERTY AND SECTION II - LIABILITY) A. Cancellation 1. The first Named Insured shown in the Declara- tions may cancel this policy by mailing or deliv- ering to us advance written notice of cancella- tion. 2. We may cancel this policy by mailing or deliv- ering to the first Named Insured written notice of cancellation at least: a. 5 days before the effective date of cancella- tion if any one of the following conditions exists at any building that is Covered Prop- erty in this policy. (1) The building has been vacant or unoc- cupied 60 or more consecutive days. This does not apply to: (a) Seasonal unoccupancy; or (b) Buildings in the course of construc- tion, renovation or addition. Buildings with 65% or more of the rental units or floor area vacant or unoccupied are considered unoccupied under this provision. (2) After damage by a covered cause of loss, permanent repairs to the building: (a) Have not started, and (b) Have not been contracted for, within 30 days of initial payment of loss. 11 (3) The building has: (a) An outstanding order to vacate; (b) An outstanding demolition order; or (c) Been declared unsafe by governmen- tal authority. (4) Fixed and salvageable items have been or are being removed from the building and are not being replaced. This does not apply to such removal that is neces- sary or incidental to any renovation or remodeling. (5) Failure to: (a) Furnish necessary heat, water, sewer service or electricity for 30 consecu- tive days or more, except during a period of seasonal unoccupancy; or (b) Pay property taxes that are owing and have been outstanding for more than one year following the date due, except that this provision will not ap- ply where you are in a bona fide dis- pute with the taxing authority regard- ing payment of such taxes. b. 10 days before the effective date of cancel- lation if we cancel for nonpayment of pre- mium. c. 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. C. Concealment, Misrepresentation Or Fraud This policy is void in any case of fraud by you as it relates to this policy at any time. It is also void if you or any other insured, at any time, intentionally conceal or misrepresent a material fact concern- ing: 1. This policy; 2. The Covered Property; 3. Your interest in the Covered Property; or 4. A claim under this policy. D. Examination Of Your Books And Records We may examine and audit your books and re- cords as they relate to this policy at any time dur- ing the policy period and up to three years after- ward. E. Inspections And Surveys 1. We have to 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: 4. Notice of cancellation will state the effective a. Are safe and healthful; or date of cancellation. The policy period will end b. Comply with laws, regulations, codes or on that date. standards. 5. If this policy is cancelled, we will send the first 3. Paragraphs 1. and 2. of this condition apply not Named Insured any premium refund due. If we only to us, but also to any rating, advisory, rate cancel, the refund will be pro rata. If the first service or similar organization which makes in- Named Insured cancels, the refund may be less surance inspections, surveys, reports or rec- than pro rata. The cancellation will be effective ommendations. even if we have not made or offered a refund. 6. If notice is mailed, proof of mailing will be suffi- cient 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 Declarations 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. 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 vessels or elevators. F. Insurance Under Two Or More Coverages If two or more of this policy's coverages apply to the same loss or damage, we will not pay more than the actual amount of the loss or damage. BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 41 of 43 ? G. Liberalization If we adopt any revision that would broaden the coverage under this policy without additional pre- mium within 45 days prior to or during the policy period, the broadened coverage will immediately apply to this policy. H. Other Insurance 1. If there is other insurance covering the same loss or damage, we will pay only for the amount of covered loss or damage in excess of the amount due from that other insurance, whether you can collect on it or not. But we will not pay more than the applicable Limit of Insurance of Section I - Property. 2. Business Liability Coverage is excess over: a. Any other insurance that insures for direct physical loss or damage; or b. Any other primary insurance available to you covering liability for damages arising out of the premises or operations for which you have been added as an additional in- sured by attachment of an endorsement. 3. When this insurance is excess, we will have no duty under Business Liability Coverage to de- fend any claim or "suit" that any other insurer has a duty to defend. If no other insurer de- fends, we will undertake to do so; but we will be entitled to the insured's rights against all those other insurers. 1. Premiums 1. The first Named Insured shown in the Declara- tions: a. Is responsible for the payment of all premi- ums; and b. Will be the payee for any return premiums we pay. 2. The premium shown in the Declarations was computed based on rates in effect at the time the policy was issued. On each renewal, con- tinuation or anniversary of the effective date of this policy, we will compute the premium in ac- cordance with our rates and rules then in effect. 3. With our consent, you may continue this policy in force by paying a continuation premium for each successive one-year period. The premium must be: a. Paid to us prior to the anniversary date; and b. Determined in accordance with Paragraph 2. above. 4. Undeclared exposures or change in your buss-- ness operation, acquisition or use of locations may occur during the policy period that are not shown in the Declarations. If so, we may re- quire an additional premium. That premium will be determined in accordance with our rates and rules then in effect. J. Premium Audit 1. This policy is subject to audit if a premium designated as an advance premium is shown in the Declarations. We will compute the final pre- mium due when we determine your actual ex- posures. 2. Premium shown in this policy as advance pre- mium 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 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 ex- cess to the first Named Insured. 3. 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. K. Transfer Of Rights Of Recovery Against Others To Us 1. Applicable to Businessowners Property Cover- age: If any person or organization to or for whom we make payment under this policy has rights to recover damages from another, those rights are transferred to us to the extent of our payment. That person or organization must do everything necessary to secure our rights and must do nothing after loss to impair them. But you may waive your rights against another party in writ- ing: a. Prior to a loss to your Covered Property. b. After a loss to your Covered Property only if, at time of loss, that party is one of the fol- lowing: (1) Someone insured by this insurance; (2) A business firm: (a) Owned or controlled by you; or (b) That owns or controls you; or (3) Your tenant. Our forms then in effect will apply. If you do not You may also accept the usual bills of lading or pay the continuation premium, this policy will shipping receipts limiting the liability of carriers. expire on the first anniversary date that we This will not restrict your insurance. have not received the premium. Deno A9 of Al 0 ISO Prooerties. Inc.. 2001 BP 00 03 07 02 0 2. Applicable to Businessowners Liability Cover- age: If the insured has rights to recover all or part of any payment we have made under this policy, those rights are transferred to us. The insured must do nothing after loss to impair them. At our request, the insured will bring "suit" or trans- fer those rights to us and help us enforce them. This condition does not apply to Medical Ex- penses Coverage. L. 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 transferred to your legal representative but only while acting within the scope of duties as your legal representa- tive. Until your legal representative is appointed, anyone having proper temporary custody of your property will have your rights and duties but only with respect to that property. BP 00 03 07 02 0 ISO Properties, Inc., 2001 Page 43 of 43 ? BUSINESSOWNERS BP 01 42 07 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PENNSYLVANIA CHANGES This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM A. Section I - Property is amended as follows: 1. The following is added to Paragraph E.6. Loss Payment Property Loss Condition and super- sedes 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 receive 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 de- nied. If we deny your claim, such notice will be in writing, and will state any policy provision, condition or exclusion used as a basis for the denial. 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. 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, supported by specific information, to sus- pect that an insured has fraudulently caused or contributed to the loss by arson or other illegal activity. Under such circum- stances, we will notify you of the disposition of your claim within a period of time rea- sonable to allow full investigation of the claim, after we receive a properly executed proof of loss. 2. 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 or quality, subject to a de- duction for deterioration, depreciation and ob- solescence. Actual cash value applies to valuation of Covered Property regardless of whether that property has sustained a partial or total loss or damage. The actual cash value of the lost or damaged property may be significantly less than its re- placement cost. B. Section III - Common Policy Conditions is amended as follows: 1. Paragraph A. Cancellation is replaced by the following: A. Cancellation 1. The first Named Insured shown in the Declarations 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 delivering to the first Named Insured written notice of cancellation at least 30 days before the effective date of cancel- lation. 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 re- newal 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 misrep- resentation which affects the insur- ability of the risk. Notice of cancella- tion will be mailed or delivered at least 15 days before the effective date of cancellation. BP 01 42 07 02 0 ISO Properties, Inc., 2001 Page 1 of 3 ? b. You have failed to pay a premium when due, whether the premium is payable directly to us or our agents or indirectly under a premium fi- nance 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 experi- ence material to insurability has changed substantially or a substan- tial condition, factor or loss experi- ence material to insurability has be- come known during the policy period. Notice of cancellation will be mailed or delivered at least 60 days before the effective date of cancella- tion. d. Loss of reinsurance or a substantial decrease in reinsurance has oc- curred, which loss or decrease, at the time of cancellation, shall be cer- tified 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 du- ties. Notice of cancellation will be mailed or delivered at least 60 days before the effective date of cancella- tion. f. Other reasons that the Insurance Commissioner may approve. Notice of cancellation will be mailed or de- livered 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 state- ments, omissions or concealment 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 ad- dress known to us. Notice of cancella- tion will state the specific reasons for cancellation. 5. Notice of cancellation will state the effective date of cancellation. The pol- icy period will end on that date. 6, It 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 effective date of cancellation. If the first Named Insured cancels, the refund may be less than pro rata and will be returned within 30 days after the effective date of can- cellation. The cancellation will be effec- tive even if we have not made or of- fered a refund, 7. If notice is mailed, it will be by regis- tered or first class mail. Proof of mailing will be sufficient proof of notice. 2. Paragraph K. Transfer Of Your Rights And Duties Under This Policy is replaced by the following: K. 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 transferred to your legal representative but only while acting within the scope of duties as your legal representative. Until your le- gal representative is appointed, anyone having proper temporary custody of your property will have your rights and duties but only with respect to that property. If you die, this Policy will remain in effect as provided in 1. or 2. below, whichever is later: 1. For 180 days after your death regard- less of the policy period shown in the Declarations, unless the insured prop- erty is sold prior to that date; or 2. Until the end of the policy period shown in the Declarations, unless the insured property 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 Dec- larations and any extension of that period. 3. The following paragraphs are added and su- persede any provisions to the contrary: M. 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. N. Increase Of Premium If we increase your renewal premium, we will mail or deliver to the first Named In- sured written notice of our intent to in- crease the premium at least 30 days before the effective date of the premium increase. Any notice of nonrenewal or renewal premium increase 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. BP 01 42 07 02 0 ISO Properties, Inc., 2001 Page 3 of 3 ? BUSINESSOWNERS BP 01 59 08 08 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WATER EXCLUSION ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM A. The exclusion in Paragraph B. replaces the Water Exclusion under Section I - Property. B. Water 1. Flood, surface water, waves (including tidal wave and tsunami), tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind (includ- ing storm surge); 2. Mudslide or mudflow; 3. Water that backs up or overflows or is other- wise discharged from a sewer, drain, sump, sump pump or related equipment; 4. Water under the ground surface pressing on, or flowing or seeping through: a. Foundations, walls, floors or paved surfac- es; 5. Waterborne material carried or otherwise moved by any of the water referred to in Para- graph 1., 3. or 4., or material carried or other- wise moved by mudslide or mudflow. This exclusion applies regardless of whether any of the above, in Paragraphs 1. through 5., is caused by an act of nature or is otherwise caused. An example of a situation to which this exclusion applies is the situation where a dam, levee, sea- wall or other boundary or containment system fails in whole or in part, for any reason, to contain the water. But if any of the above, in Paragraphs 1. through 5., results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. b. Basements, whether paved or not; or c. Doors, windows or other openings; or BP 01 59 08 08 0 Insurance Services Office, Inc., 2008 Page 1 of 1 ? BUSINESSOWNERS BP 01 91 07 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 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. BP 01 91 07 02 © ISO Properties, Inc., 2001 Page 1 of 1 ? BUSINESSOWNERS BP 04 17 07 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EMPLOYMENT-RELATED PRACTICES EXCLUSION This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following exclusion is added to Paragraph B. Exclusions in Section II - Liability: This insurance does not apply to: 1. "Bodily injury" or "personal and advertising injury" to: a. A person arising out of any: (1) Refusal to employ that person; (2) Termination of that person's employ- ment; or (3) Employment-related practices, policies, acts or omissions, such as coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation or discrimination directed at that person; or b. The spouse, child, parent, brother or sister of that person as a consequence of "bodily injury" or "personal and advertising injury" to that person at whom any of the employ- ment-related practices described in Para- graphs (1), (2) or (3) above is directed. 2. This exclusion applies: a. Whether the insured may be liable as an employer or in any other capacity; and b. To any obligation to share damages with or repay someone else who must pay dam- ages because of the injury. BP 04 17 07 02 © ISO Properties, Inc., 2001 Page 1 of 1 ? POLICY NUMBER: BUSINESSOWNERS BP 04 53 08 08 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WATER BACK-UP AND SUMP OVERFLOW This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM SCHEDULE Premises Number Limit Of Insurance $ Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. We will pay for direct physical loss or damage to Covered Property, covered under Section I - Property, caused by or resulting from: 1. Water or waterbome material which backs up through or overflows or is otherwise discharged from a sewer or drain; or 2. Water or waterborne material which overflows or is otherwise discharged from a sump, sump pump or related equipment, even if the over- flow or discharge results from mechanical breakdown of a sump pump or its related equipment. However, with respect to Paragraph 2. above, we will not pay the cost of repairing or replacing a sump pump or its related equipment in the event of mechanical breakdown. B. The coverage described in Paragraph A. of this endorsement does not apply to loss or damage resulting from an insured's failure to: 1. Keep a sump pump or its related equipment in proper working condition; or 2. Perform the routine maintenance or repair necessary to keep a sewer or drain free from obstructions. C. The most we will pay for the coverage provided under this endorsement is $5,000 per location, un- less a higher Water Back-Up And Sump Overflow Limit of Insurance is indicated in the Schedule of this endorsement. D. With respect to the coverage provided under this endorsement, the Water Exclusion in Section I - Property is replaced by the following exclusion: Water 1. Flood, surface water, waves (including tidal wave and tsunami), tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind (includ- ing storm surge); 2. Mudslide or mudflow; or 3. Water under the ground surface pressing on, or flowing or seeping through: a. Foundations, walls, floors or paved surfac- es; b. Basements, whether paved or not; or c. Doors, windows or other openings; or 4. Waterborne material carried or otherwise moved by any of the water referred to in Para- graph 1. or 3., or material carried or otherwise moved by mudslide or mudflow. This exclusion applies regardless of whether any of the above, in Paragraphs 1. through 4., is caused by an act of nature or is otherwise caused. An example of a situation to which this exclusion applies is the situation where a dam, levee, sea- wall or other boundary or containment system fails in whole or in part, for any reason, to contain the water. BP 04 53 08 08 @ Insurance Services Office, Inc., 2008 Page 1 of 2 ? But if any of the above, in Paragraphs 1. through 4., results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. Page 2 of 2 @ Insurance Services Office, Inc., 2008 BP 04 53 08 08 ? BUSINESSOWNERS BP 04 83 07 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. REMOVAL OF INSURANCE-TO-VALUE PROVISION This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM Paragraph E.6.d. Loss Payment Property Loss Con- dition in Section I - Property is amended as follows: A. Paragraph (1)(a) is replaced by the following: (1) At replacement cost without deduction for depreciation, subject to the following: (a) We will pay the cost to repair or replace, after application of the deductible and with- out deduction for depreciation, but not more than the least of the following amounts: (i) The Limit of Insurance under Section I - Property that applies to the lost or dam- aged property; (ii) The cost to replace, on the same prem- ises, the lost or damaged property with other property: i. Of comparable material and quality; and ii. Used for the same purpose; or (iii) The amount that you actually spend that is necessary to repair or replace the lost or damaged property. If a building is rebuilt at a new premises, the cost is limited to the cost which would have been incurred had the building been built at the original premises. B. Paragraph (1)(b) does not apply. BP 04 83 07 02 0 ISO Properties, Inc., 2000 Page 1 of 1 ? BUSINESSOWNERS BP 05 14 01 03 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAR LIABILITY EXCLUSION This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following provisions are added to the Busines- sowners Liability Coverage Form BP 00 06 and Sec- tion II - Liability of the Businessowners Coverage Form BP 00 03: A. Exclusion i. under Paragraph B.1., Exclusions - Applicable To Business Liability Coverage is replaced by the following: 1. Applicable To Business Liability Coverage This insurance does not apply to: i. War (3) Insurrection, rebellion, revolution, usurped power, or action taken by gov- ernmental authority in hindering or de- fending against any of these. B. Exclusion h. under Paragraph B.2. Exclusions - Applicable To Medical Expenses Coverage does not apply. Medical Expenses due to war are now subject to Exclusion g. of Paragraph B.2. since "bodily injury" arising out of war is now ex- cluded under Paragraph B.1., Exclusions - Ap- plicable To Business Liability Coverage. "Bodily injury", "property damage", "per- sonal injury", "advertising injury" or "per- sonal and advertising injury", however caused, arising, directly or indirectly, out of: (1) War, including undeclared or civil war; or (2) Warlike action by a military force, in- cluding 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 BP 05 14 01 03 0 ISO Properties, Inc., 2003 Page 1 of 1 ? BUSINESSOWNERS BP 05 23 01 08 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: BUSINESSOWNERS COVERAGE FORM A. The following provisions are added to the Busi- nessowners Policy and apply to Property and Li- ability Coverages: 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. The criteria contained in the Terror- ism Risk Insurance Act for a "certified act of terror- ism" include the following: 1. The act resulted in insured losses in excess of $5 million in the aggregate, attributable to all types of insurance subject to the Terrorism Risk Insurance Act; 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 as part of an effort to coerce the civilian popu- lation of the United States or to influence the policy or affect the conduct of the United States Government by coercion. If aggregate insured losses attributable to terrorist acts certified under the Terrorism Risk Insurance Act exceed $100 billion in a Program Year (Janu- ary 1 through December 31) and we have met our insurer deductible under the Terrorism Risk Insur- ance Act, we shall not be liable for the payment of any portion of the amount of such losses that ex- ceeds $100 billion, and in such case insured losses up to that amount are subject to pro rata al- location in accordance with procedures estab- lished by the Secretary of the Treasury. B. The following provision is added to Businessown- ers Standard Property Coverage Form BP 00 01, Businessowners Special Property Coverage Form BP 00 02 or Section I - Property of Busines- sowners Coverage Form BP 00 03: 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 under this Coverage Form or Policy, such as losses ex- cluded by the Nuclear Hazard Exclusion or the War And Military Action Exclusion. BP 05 23 01 08 0 ISO Properties, Inc., 2007 Page 1 of 1 ? BUSINESSOWNERS BP 05 35 11 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION OF ACTS OF BIOLOGICAL OR CHEMICAL TERRORISM; CAP ON LOSSES FROM CERTIFIED ACTS OF TERRORISM; COVERAGE FOR CERTAIN FIRE LOSSES This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following provisions are added to Businessown- ers Standard Property Coverage Form BP 00 01, Businessowners Special Property Coverage Form BP 00 02 or Section I - Property of Businessowners Coverage Form BP 00 03: A. The following definitions are added with respect to the provisions of this endorsement: 1. "Certified act of terrorism" means an act that is certified 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 cri- teria contained in that Act for a "certified act of terrorism" include the following: a. The act resulted in aggregate losses in excess of $5 million; and b. The act is a violent act or an act that is dangerous to human life, property or infra- structure and is committed by an individual or individuals acting on behalf of any for- eign 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. 2. "Other act of terrorism" means a violent act or an act that is dangerous to human life, prop- erty or infrastructure that is committed by an individual or individuals and that appears to be part of an effort to coerce a civilian population or to influence the policy or affect the conduct of any government by coercion, and the act is not certified as a terrorist act pursuant to the federal Terrorism Risk Insurance Act of 2002. However, "other act of terrorism" does not in- clude an act which meets the criteria set forth in Paragraph b. of the definition of "certified act of terrorism", when such act resulted in ag- gregate losses of $5 million or less. B. The following exclusion is added: EXCLUSION OF AN "OTHER ACT OF TERRORISM" We will not pay for loss or damage caused directly or indirectly by an "other act of terrorism". Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. But this exclusion applies only when one or both of the following are attributed to such act: 1. The terrorism is carried out by means of the dispersal or application of pathogenic or poi- sonous biological or chemical materials; or 2. Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the terrorism was to release such materials. C. Exception Covering Certain Fire Losses If an "other act of terrorism" results in fire, we will pay for the loss or damage caused by that fire. Such coverage for fire applies only to direct loss or damage by fire to Covered Property. Therefore, for example, the exception does not apply to in- surance provided under Business Income and/or Extra Expense Additional Coverages. D. Cap On Certified Terrorism Losses 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. BP 06 35 11 02 0 ISO Properties, Inc., 2002 Page 1 of 2 ? E. Application Of Other Exclusions The terms and limitations of any terrorism exciu- 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 Form or Policy, such as losses ex- cluded by the Nuclear Hazard Exclusion or the War And Military Action Exclusion. Page 2 of 2 0 ISO Properties, Inc., 2002 BP 05 35 11 02 ? BUSINESSOWNERS BP 05 39 12 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NUCLEAR, BIOLOGICAL OR CHEMICAL TERRORISM EXCLUSION (OTHER THAN CERTIFIED ACTS OF TERRORISM); CAP ON LOSSES FROM CERTIFIED ACTS OF TERRORISM This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following provisions are added to the Busines- sowners Liability Coverage Form BP 00 06 and Sec- tion II - Liability of the Businessowners Coverage Form BP 00 03: A. The following exclusion is added: This insurance does not apply to: TERRORISM "Any injury or damage" arising, directly or indi- rectly, out of an "other act of terrorism" that is not a "certified act of terrorism". However, this exclu- sion applies only when one or more of the follow- ing are attributed to such act: 1. The terrorism involves the use, release or escape of nuclear materials, or directly or indi- rectly results in nuclear reaction or radiation or radioactive contamination; or 2. The terrorism is carried out by means of the dispersal or application of pathogenic or poi- sonous biological or chemical materials; or 3. Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the terrorism was to release such materials. B. The following definitions are added: For the purposes of this endorsement, "any injury or damage" means any injury or damage covered under any Coverage Form to which this endorsement is applicable, and includes but is not limited to "bodily injury", "property damage" or "personal and advertising injury" as may be defined in any applicable Coverage Form. 2. "Certified act of terrorism" means an act that is certified 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 terrorism": a. The act resulted in aggregate losses in excess of $5 million; and b. The act is a violent act or an act that is dangerous to human life, property or infra- structure and is committed by an individual or individuals acting on behalf of any for- eign 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. 3. "Other act of terrorism" means a violent act or an act that is dangerous to human life, prop- erty or infrastructure that is committed by an individual or individuals and that appears to be part of an effort to coerce a civilian population or to influence the policy or affect the conduct of any government by coercion, and the act is not certified as a terrorist act pursuant to the federal Terrorism Risk Insurance Act of 2002. However, "other act of terrorism" does not in- clude an act which meets the criteria set forth in Paragraph b. of the definition of "certified act of terrorism" when such act resulted in ag- gregate losses of $5 million or less. Multiple incidents of an "other act of terrorism" which occur within a seventy-two hour period and appear to be carried out in concert or to have a related purpose or common leadership shall be considered to be one incident. BP 05 39 12 02 0 ISO Properties, Inc., 2002 Page 1 of 2 ? C. In the event of an "other act of terrorism" that is D not subject to this exclusion, coverage does not apply to any loss or damage that is otherwise ex- cluded under this Coverage Form or 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 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- suits in a cap on our liability for payments for ter- rorism losses. Page 2 of 2 0 ISO Properties, Inc., 2002 BP 06 39 12 02 ? POLICY NUMBER: BUSINESSOWNERS BP 05 64 01 07 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CONDITIONAL EXCLUSION OF TERRORISM (RELATING TO DISPOSITION OF FEDERAL TERRORISM RISK INSURANCE ACT) This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM SCHEDULE The Exception Covering Certain Fire Losses (Paragraph B.2.) applies to property located in the following (Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. Section I - Property and Section 11 - Liability (2) A renewal, extension or replacement are amended as follows: of the Program has become effective 1. Applicability Of The Provisions Of This without a requirement to make terror- Endorsement ism coverage available to you and with revisions that: a. The provisions of this endorsement become applicable commencing on the our (a) Increase e date when any one or more of the follow- deductible under the Program for 9 ing first occurs. But if your policy terrorism losses. (That deductible (meaning the policy period in which this determines the amount of all certi- endorsement applies) begins after such fied terrorism losses we must pay date, then the provisions of this en- in a calendar year, before the fed- dorsement become applicable on the eral government shares in subse- date your policy begins. quent payment of certified terror- ism losses.); or (1) The federal Terrorism Risk Insurance Program ("Program"), established by (b) Decrease the federal govern- the Terrorism Risk Insurance Act, ment's statutory percentage share has terminated with respect to the in potential terrorism losses type of insurance provided under this above such deductible; or Coverage Form; or BP 05 64 01 07 0 ISO Properties, Inc., 2006 Page 1 of 4 ? (c) Redefine terrorism or make insur- ance coverage for terrorism sub- ject to provisions or requirements that differ from those that apply to other types of events or occur- rences under this policy. b. If the provisions of this endorsement become applicable, such provisions: (1) Supersede any terrorism endorse- ment already endorsed to this policy that addresses "certified acts of ter- rorism" and/or "other acts of terror- ism", but only with respect to loss or injury or damage from an incident(s) of terrorism (however defined) that occurs on or after the date when the provisions of this endorsement be- come applicable; and (2) Remain applicable unless we notify you of changes in these provisions, in response to federal law. c. If the provisions of this endorsement do NOT become applicable, any terrorism endorsement already endorsed to this policy, that addresses "certified acts of terrorism" and/or "other acts of terror- ism", will continue in effect unless we notify you of changes to that endorse- ment in response to federal law. 2. The following definition is added and applies under this endorsement wherever the term ter- rorism is enclosed in quotation marks. "Terrorism" means activities against persons, organizations or property of any nature: a. That involve the following or preparation for the following: (1) Use or threat of force or violence; or (2) Commission or threat of a dangerous act; or (3) Commission or threat of an act that interferes with or disrupts an electronic, communication, information, or me- chanical system; and b. When one or both of the following applies: (1) (2) The effect is to intimidate or coerce a government or the civilian population or any segment thereof, or to disrupt any segment of the economy; or It appears that the intent is to intimidate or coerce a government, or to further political, ideological, religious, social or economic objectives or to express (or express opposition to) a philosophy or ideology. B. Section I - Property is amended as follows 1. The following exclusion is added: EXCLUSION OF TERRORISM We will not pay for loss or damage caused di- rectly or indirectly by "terrorism", including ac- tion in hindering or defending against an actual or expected incident of "terrorism". Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. But this exclusion applies only when one or more of the following are attributed to an incident of "terrorism": a. The "terrorism" is carried out by means of the dispersal or application of radioactive material, or through the use of a nuclear weapon or device that involves or produces a nuclear reaction, nuclear radiation or ra- dioactive contamination; or b. Radioactive material is released, and it appears that one purpose of the "terrorism" was to release such material; or c. The "terrorism" is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or d. Pathogenic or poisonous biological or chemical materials are released, and it ap- pears that one purpose of the "terrorism" was to release such materials; or e. The total of insured damage to all types of property in the United States, its territories and possessions, Puerto Rico and Canada exceeds $25,000,000. In determining whether the $25,000,000 threshold is ex- ceeded, we will include all insured damage sustained by property of all persons and en- tities affected by the "terrorism" and busi- ness interruption losses sustained by own- ers or occupants of the damaged property. For the purpose of this provision, insured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the appli- cation of any terrorism exclusions. Multiple incidents of "terrorism" which occur within a 72-hour period and appear to be carried out in concert or to have a related purpose or common leadership will be deemed to be one incident, for the purpose of determining whether the threshold is exceeded. Page 2 of 4 0 ISO Properties, Inc., 2006 BP 06 64 01 07 ? With respect to this Item 1.e., the immedi- ately preceding paragraph describes the threshold used to measure the magnitude of an incident of "terrorism" and the circum- stances in which the threshold will apply, for the purpose of determining whether this Exclusion will apply to that incident. When the Exclusion applies to an incident of "ter- rorism", there is no coverage under this Coverage Form. 2. Exception Covering Certain Fire Losses The following exception to the Exclusion Of Terrorism applies only if indicated and as indi- cated in the Schedule of this endorsement. If "terrorism" results in fire, we will pay for the loss or damage caused by that fire, subject to all applicable policy provisions including the Limit of Insurance on the affected property. Such coverage for fire applies only to direct loss or damage by fire to Covered Property. Therefore, for example, the coverage does not apply to insurance provided under Business Income and/or Extra Expense coverages or endorsements that apply to those coverages. 3. Application Of Other Exclusions 2. The following exclusion is added: EXCLUSION OF TERRORISM We will not pay for "any injury or damage" caused directly or indirectly by "terrorism", in- cluding action in hindering or defending against an actual or expected incident of "terrorism". "Any injury or damage" is excluded regardless of any other cause or event that contributes concurrently or in any sequence to such injury or damage. But this exclusion applies only when one or more of the following are at- tributed to an incident of "terrorism": a. The "terrorism" is carried out by means of the dispersal or application of radioactive material, or through the use of a nuclear weapon or device that involves or produces a nuclear reaction, nuclear radiation or ra- dioactive contamination; or b. Radioactive material is released, and it appears that one purpose of the "terrorism" was to release such material; or c. The "terrorism" is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or a. When the Exclusion Of Terrorism applies in d. Pathogenic or poisonous biological or accordance with the terms of Paragraph chemical materials are released, and it ap- 1.a. or 1.b., such exclusion applies without pears that one purpose of the "terrorism" regard to the Nuclear Hazard Exclusion in was to release such materials; or this Coverage Form. b. The terms and limitations of any terrorism e. The total of insured damage to all types of property exceeds $25,000,000. In determin- exclusion, or the inapplicability or omission ing whether the $25,000 000 threshold is of a terrorism exclusion, do not serve to , exceeded we will include all insured dam- create coverage for any loss or damage , age sustained by property of all persons which would otherwise be excluded under and entities affected by the "terrorism" and this Coverage Form as losses excluded by business interruption losses sustained by the Nuclear Hazard Exclusion or the War owners or occupants of the damaged prop- And Military Action Exclusion. erty. For the purpose of this provision, in- C. Section II - Liability is amended as follows: sured damage means damage that is cov- 1. The following definition is added and applies ered by any insurance plus damage that under this endorsement wherever the phrase would be covered by any insurance but for any injury or damage, is enclosed in quotation the application of any terrorism exclusions; marks: or "Any injury or damage" means any injury or f. Fifty or more persons sustain death or damage covered under this Coverage Form or serious physical injury. For the purposes of any applicable endorsement, and includes but this provision, serious physical injury is not limited to "bodily injury", "property dam- means: age" or "personal and advertising injury", as (1) Physical injury that involves a substan- may be defined under this Coverage Form or tial risk of death; or any applicable endorsement. (2) Protracted and obvious physical disfig- urement; or BP 05 64 01 07 0 ISO Properties, Inc., 2006 Page 3 of 4 ? (3) Protracted loss of or impairment of the function of a bodily member or organ. Multiple incidents of "terrorism" which occur within a 72-hour period and appear to be car- ried out in concert or to have a related purpose or common leadership will be deemed to be one incident, for the purpose of determining whether the thresholds in Paragraph 2.e. or 2.f. are exceeded. With respect to this Exclusion, Paragraphs 2.e. and 2.f. describe the threshold used to meas- ure the magnitude of an incident of "terrorism" and the circumstances in which the threshold will apply, for the purpose of determining whether this Exclusion will apply to that inci- dent. When the Exclusion applies to an inci- dent of "terrorism", there is no coverage under this Coverage Form. In the event of any incident of "terrorism" that is not subject to this Exclusion, coverage does not apply to "any injury or damage" that is oth- erwise excluded under this Coverage Form. Page 4 of 4 0 ISO Properties, Inc., 2006 BP 06 64 01 07 ? POLICY NUMBER: BUSINESSOWNERS BP 05 65 01 07 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CONDITIONAL EXCLUSION OF TERRORISM INVOLVING NUCLEAR, BIOLOGICAL OR CHEMICAL TERRORISM (RELATING TO DISPOSITION OF FEDERAL TERRORISM RISK INSURANCE ACT) This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM SCHEDULE The Exception Covering Certain Fire Losses (Paragraph B.2.) applies to property located in the following Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. Section I - Property and Section II - Liability are amended as follows: 1. Applicability Of The Provisions Of This Endorsement a. The provisions of this endorsement become applicable commencing on the date when any one or more of the follow- ing first occurs. But if your policy (meaning the policy period in which this endorsement applies) begins after such date, then the provisions of this en- dorsement become applicable on the date your policy begins. (1) The federal Terrorism Risk Insurance Program ("Program"), established by the Terrorism Risk Insurance Act, has terminated with respect to the type of insurance provided under this Coverage Form; or (2) A renewal, extension or replacement of the Program has become effective without a requirement to make terror- ism coverage available to you and with revisions that: (a) Increase our statutory percentage deductible under the Program for terrorism losses. (That deductible determines the amount of all certi- fied terrorism losses we must pay in a calendar year, before the fed- eral government shares in subse- quent payment of certified terror- ism losses.); or (b) Decrease the federal govern- ment's statutory percentage share in potential terrorism losses above such deductible; or (c) Redefine terrorism or make insur- ance coverage for terrorism sub- ject to provisions or requirements that differ from those that apply to other types of events or occur- rences under this policy. BP 05 65 01 07 © ISO Properties, Inc., 2006 Page 1 of 3 ? b. If the provisions of this endorsement become applicable, such provisions: (1) Supersede any terrorism endorse- ment already endorsed to this policy that addresses "certified acts of ter- rorism" and/or "other acts of terror- ism", but only with respect to loss or injury or damage from an incident(s) of terrorism (however defined) that occurs on or after the date when the provisions of this endorsement be- come applicable; and (2) Remain applicable unless we notify you of changes in these provisions, in response to federal law. c. If the provisions of this endorsement do NOT become applicable, any terrorism endorsement already endorsed to this policy, that addresses "certified acts of terrorism" and/or "other acts of terror- ism", will continue in effect unless we notify you of changes to that endorse- ment in response to federal law. 2. The following definition is added and applies under this endorsement wherever the term ter- rorism is enclosed in quotation marks. "Terrorism" means activities against persons, organizations or property of any nature: a. That involve the following or preparation for the following: (1) Use or threat of force or violence; or (2) Commission or threat of a dangerous act; or (3) Commission or threat of an act that interferes with or disrupts an electronic, communication, information, or me- chanical system; and b. When one or both of the following applies: (1) (2) The effect is to intimidate or coerce a government or the civilian population or any segment thereof, or to disrupt any segment of the economy; or It appears that the intent is to intimidate or coerce a government, or to further political, ideological, religious, social or economic objectives or to express (or express opposition to) a philosophy or ideology. B. Section I _ Property is amended as follows: 1. The following exclusion is added: EXCLUSION OF TERRORISM We will not pay for loss or damage caused di- rectly or indirectly by "terrorism", including ac- tion in hindering or defending against an actual or expected incident of "terrorism". Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. But this exclu- sion applies only when one or more of the following are attributed to an incident of "terrorism": a. The "terrorism" is carried out by means of the dispersal or application of radioactive material, or through the use of a nuclear weapon or device that involves or produces a nuclear reaction, nuclear radiation or ra- dioactive contamination; or b. Radioactive material is released, and it appears that one purpose of the "terrorism" was to release such material; or c. The "terrorism" is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or d. Pathogenic or poisonous biological or chemical materials are released, and it ap- pears that one purpose of the "terrorism" was to release such materials. 2. Exception Covering Certain Fire Losses The following exception to the Exclusion Of Terrorism applies only if indicated and as indi- cated in the Schedule of this endorsement. If "terrorism" results in fire, we will pay for the loss or damage caused by that fire, subject to all applicable policy provisions including the Limit of Insurance on the affected property. Such coverage for fire applies only to direct loss or damage by fire to Covered Property. Therefore, for example, the coverage does not apply to insurance provided under Business Income and/or Extra Expense coverages or endorsements that apply to those coverages. Page 2 of 3 O ISO Properties, Inc., 2006 BP 06 65 01 07 ? 3. Application Of Other Exclusions a. When the Exclusion Of Terrorism applies in accordance with the terms of Paragraph 1.a. or 1.b., such exclusion applies without regard to the Nuclear Hazard Exclusion in this Coverage Form. b. The terms and limitations of any terrorism exclusion, or the inapplicability or omission of a terrorism exclusion, do not serve to create coverage for any loss or damage which would otherwise be excluded under this Coverage Form, such as losses ex- cluded by the Nuclear Hazard Exclusion or the War And Military Action Exclusion. C. Section II - Liability is amended as follows: 1. The following definition is added and applies under this endorsement wherever the phrase any injury or damage is enclosed in quotation marks: "Any injury or damage" means any injury or damage covered under this Coverage Form or any applicable endorsement, and includes but is not limited to "bodily injury", "property dam- age" or "personal and advertising injury" as may be defined under this Coverage Form. 2. The following exclusion is added: EXCLUSION OF TERRORISM We will not pay for "any injury or damage" caused directly or indirectly by "terrorism", in- cluding action in hindering or defending against an actual or expected incident of "terrorism". "Any injury or damage" is excluded regardless of any other cause or event that contributes concurrently or in any sequence to such injury or damage. But this exclusion applies only when one or more of the following are at- tributed to an incident of "terrorism": a. The "terrorism" is carried out by means of the dispersal or application of radioactive material, or through the use of a nuclear weapon or device that involves or produces a nuclear reaction, nuclear radiation or ra- dioactive contamination; or b. Radioactive material is released, and it appears that one purpose of the "terrorism" was to release such material; or c. The "terrorism" is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or d. Pathogenic or poisonous biological or chemical materials are released, and it ap- pears that one purpose of the "terrorism" was to release such materials. In the event of any incident of "terrorism" that is not subject to this Exclusion, coverage does not apply to "any injury or damage" that is oth- erwise excluded under this Coverage Form. BP 05 65 01 07 0 ISO Properties, Inc., 2006 Page 3 of 3 ? BUSINESSOWNERS BP 05 77 11 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FUNGI OR BACTERIA EXCLUSION (LIABILITY) This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM The following provisions are added to Section II - (2) Any loss, cost or expenses arising out of Liability: the abating, testing for, monitoring, clean- A. The following exclusion is added to Paragraph ing up, removing, containing, treating, de- B.1., Exclusions - Applicable To Business Li- toxifying, neutralizing, remediating or dis- ability Coverage: posing of, or in any way responding to, or assessing the effects of, "fungi" or bacteria, q. Fungi or Bacteria by any insured or by any other person or (1) "Bodily injury", "property damage" or "per- entity. sonal and advertising injury" which would This exclusion does not apply to any "fungi" or not have occurred, in whole or in part, but bacteria that are, are on, or are contained in, a for the actual, alleged or threatened inhala- good or product intended for consumption. tion of, ingestion of, contact with, exposure "fungi" B. The following definition is added Paragraph F. to, existence of, or presence of, any Liability And Medical Expenses Definitions: or bacteria on or within a building or struc- ture, including its contents, regardless of 1. "Fungi" means any type or form of fungus, whether any other cause, event, material or including mold or mildew and any mycotoxins, product contributed concurrently or in any spores, scents or by-products produced or re- sequence to such injury or damage. leased by fungi. BP 05 77 11 02 0 ISO Properties, Inc., 2002 Page 1 of 1 0 BUSINESSOWNERS BP 06 01 01 07 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION OF LOSS DUE TO VIRUS OR BACTERIA This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM A. The exclusion set forth in Paragraph B. applies to all coverage under Section I - Property in all forms and endorsements that comprise this Busi- nessowners Policy, except as provided in Para- graph C. This includes but is not limited to forms or endorsements that cover property damage to buildings or personal property and forms or en- dorsements that cover business income, extra ex- pense or action of civil authority. B. We will not pay for loss or damage caused by or resulting from any virus, bacterium or other micro- organism that induces or is capable of inducing physical distress, illness or disease. C. However, the exclusion in Paragraph B. does not apply to the following: 1. Loss or damage caused by or resulting from "fungi", wet rot or dry rot. Such loss or damage is addressed in a separate exclusion in this Businessowners Policy; or F. 2. Coverage otherwise provided under Food Contamination Endorsement BP 04 31 (if that endorsement is attached to this Businessown- ers Policy); or 3. Coverage otherwise provided under the Food Contamination Additional Coverage in Restau- rants Endorsement BP 07 78 (if that endorse- ment is attached to this Businessowners Poli- cy). D. With respect to any loss or damage subject to the exclusion in Paragraph B., such exclusion super- sedes any exclusion relating to "pollutants". E. The following provisions in this Businessowners Policy are hereby amended to remove reference to bacteria: 1. Exclusion of "Fungi", Wet Rot, Dry Rot And Bacteria; and 2. Additional Coverage - Limited Coverage For "Fungi", Wet Rot, Dry Rot And Bacteria, includ- ing any endorsement increasing the scope or amount of coverage. The terms of the exclusion in Paragraph B., or the inapplicability of this exclusion to a particular loss, do not serve to create coverage for any loss that would otherwise be excluded under this Business- owners Policy. BP 06 01 01 07 0 ISO Properties, Inc., 2006 Page 1 of 1 POLICY NUMBER: BUSINESSOWNERS BP 07 01 08 08 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CONTRACTORS' INSTALLATION, TOOLS AND EQUIPMENT COVERAGE This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM SCHEDULE Item Limit Of Insurance Coverage Extension 1 - Contractors' Installation Coverage 1. Property at each covered job site $ 2. Property in transit $ 5,000 3. Property at a "temporary storage location" $ 5,000 4. Property at all covered job sites combined 3 times the Limit of Insurance for property at each covered job site described in Item 1. Additional Premium: $ Coverage Extension 2 - Contractors' Tools And Equipment 1. Blanket Basis All Covered Property as described in Paragraph D.2.g.(2)(a) $ not in excess of $2,000 for any one item 2. Scheduled Basis All Covered Property described in Paragraph D.2. . 2 b A. $ B. $ C. $ D. $ E. $ Total Scheduled Property Limit Of Insurance $ Additional Premium: $ BP 07 01 08 08 @ Insurance Services Office, Inc., 2008 Page 1 of 5 ? Item Limit Of Insurance Coverage Extension 3 - Non-Owned Tools And Equipment $ Additional Premium: $ Coverage Extension 4 - Employee's Tools Is Additional Premium: Is Information required to complete this Schedule, if not shown above, will be shown in the Declarations. Section I - Property is amended as follows: A. With respect to coverage provided by this en- dorsement, the provisions of the Businessowners Coverage Form apply, unless modified by this en- dorsement. B. Paragraph A.6.b. Coverage Extensions is amended as follows: The Personal Property Off Premises Coverage Extension is amended by adding the following: This extension does not apply to loss or dam- age to property covered under the following Coverage Extensions: (1) Coverage 1 - Contractors' Installation Cov- erage; and (2) Coverage 2 - Contractors' Tools And Equipment Coverage. C. The following is added to Paragraph A.4. Limita- tions: d. We will not pay for loss of or damage to the following types of property unless caused by the "specified causes of loss" or building glass breakage: Miscellaneous tools and equipment including their: (1) Accessories, whether or not attached; and (2) Spare parts, that are specifically designed and intended for use in the maintenance and operation of the miscellaneous tools and equipment; that you own, or that you do not own but that are in your care, custody or control, other than miscellaneous tools and equipment covered under Coverage 2 - Contractors' Tools And Equipment Coverage. e. We will not pay for loss of or damage to mate- rials, supplies, equipment, machinery and fix- tures: caused by or resulting from theft. In addition, we will not pay for any loss that is a conse- quence of loss or damage to such property. However, this limitation does not apply to: (1) Property insured under Coverage 1 - Con- tractors' Installation Coverage described in Paragraph D.1.; (2) Materials, supplies, equipment, machinery and fixtures held for sale by you; or (3) Business Income Coverage or Extra Ex- pense Coverage. D. Coverage Extensions 1. Coverage 1 - Contractors' Installation Coverage a. The following is added to Paragraph A.1.b.(2) Business Personal Property: This coverage also includes property sold under an installation agreement where your insurable interest continues until the proper- ty is accepted by the purchaser for whom the project is to be performed. b. In addition to Covered Property listed in Paragraph A.1.b., you may extend the in- surance that applies to Business Personal Property to apply to loss of or damage to the following property: (1) Materials, supplies, equipment, machi- nery, and fixtures owned by you or in your care, custody or control, and which are to be installed by you or at your di- rection; and (2) Temporary structures built or assembled on site, including cribbing, scaffolding and construction forms. This property is covered while: (1) At any job site you do not own, lease or operate; (1) Owned by you; or (2) Awaiting and during installation, or (2) In your care, custody or control; awaiting acceptance by the purchaser; intended for installation: (3) In transit; or (1) By you; or (4) At a "temporary storage location". (2) At your direction; Page 2 of 6 © Insurance Services Office, Inc., 2008 BP 07 01 08 08 ? c. Coverage provided under this Extension will end when one of the following first occurs: (1) This policy expires or is cancelled; (2) The property covered under this Exten- sion is accepted by the purchaser; (3) Your interest in the property covered under this Extension ceases; (4) You abandon the project to be per- formed by you for the purchaser, with no intention to complete it; or (5) 90 days after the project to be per- formed by you for the purchaser is com- pleted, unless we specify a different date in writing. d. In addition to Property Not Covered in Pa- ragraph A.2. of the Businessowners Cover- age Form, the following property is not cov- ered with respect to this Extension: (1) An existing building or structure to which an addition, alteration, improvement or repair is being made; (2) Property stored at a permanent ware- house or storage yard that you own; (3) A plan, blueprint, design or specification; (4) Trees, grass, sod, shrubbery or plants; and (5) Machinery, tools, equipment, supplies or similar property that do not become a permanent part of the project. This in- cludes contractors equipment and other tools belonging to a contractor or sub- contractor. e. With respect to this Extension, the following additional exclusions apply: We will not pay for loss or damage caused by or resulting from any of the following: (1) The cost to make good or replace faulty or defective materials or workmanship; (2) Testing. However, if testing results in fire or explosion, we will pay for the loss or damage caused by that fire or explo- sion; (3) A fault, defect, deficiency, error or omis- sion in a plan, blueprint, design or speci- fication; (4) The weight of a load when it exceeds the designed capacity of any property covered under this Extension to lift, move or support the load from any posi- tion; or (5) Collision, upset or overturn of any prop- erty covered under this Extension to the extent of any loss of or damage to the tires or inner tubes of such property. But we will pay for the loss of or damage to the tires or inner tubes if the same acci- dent causes other covered loss to the same property covered under this Ex- tension. f. Limits Of Insurance (1) Unless a higher Limit of Insurance is shown in the Schedule for Coverage 1 - Contractors' Installation Coverage, the most we will pay for direct physical loss of or damage to Covered Property de- scribed in the Schedule caused by or resulting from any Covered Cause of Loss is $3,000. (a) The most we will pay for loss or damage in any one occurrence to Covered Property at each covered job site is the Limit of Insurance for property at each covered job site shown in the Schedule. (b) The most we will pay for loss or damage in any one occurrence to Covered Property at all covered job sites combined is three times the Limit of Insurance shown in the Schedule for property at each cov- ered job site. 2. Coverage 2 - Contractors' Tools And Equipment Coverage a. You may extend the insurance that applies to Business Personal Property in Paragraph A.1.b. to apply to miscellaneous tools and equipment, including their: (1) Accessories, whether or not attached; and (2) Spare parts, that are specifically de- signed and intended for use in the main- tenance and operation of property cov- ered under this Extension; that you own, or that you do not own but that are in your care, custody or control. BP 07 01 08 08 0 Insurance Services Office, Inc., 2008 Page 3 of 5 ? b. With respect to this Extension, Paragraph 3. Collision, upset or overturn of any prop- A.2.a. is replaced by the following: erty covered under this Extension to the their equipment or watercraft a. Aircraft extent of any loss of or damage to the , , parts; automobiles; dealers' demonstra- tires or inner tubes of such property. But tion equipment, machinery and vehicles; we will pay for the loss of or damage to house trailers, mobile homes, dirt bikes the tires or inner tubes if the same acci- , mopeds, motorcycles, motorized bi- dent causes other covered loss to the cycles, tricycles or four-wheel all terrain same property covered under this Ex- vehicles; snowmobiles, trucks and ve- tension. hicles primarily designed and licensed g. Limits Of insurance for road use; (1) Unless a higher Limit of Insurance is c. In addition to Property Not Covered in Pa- shown in the Schedule for Coverage 2 - ragraph A.2., the following property is not Contractors' Tools and Equipment Cov- covered with respect to this Extension: erage, the most we will pay for the direct (1) Property while in caissons or underwa- physical loss or damage to Covered ter or while being used in underground Property on or away from the described tunneling or similar operations; mining premises caused by or resulting from , any Covered Cause of Loss is $3,000 (2) Property you have loaned, rented or subject to a limit for any one tool or leased to others; piece of equipment. (3) Property that is or will become a perma- (2) The property covered under this exten- nent part of any building or structure; or sion may be: (4) Property held for sale. (a) Covered on a blanket basis for tools d. With respect to this Extension, Paragraph and equipment you own that are not: (1) of Exclusion B.1.b. Earth Movement i. Individually described in the does not apply to loss or damage caused Schedule; and directly or indirectly by earthquake. ii. In excess of $2,000 on any one e. With respect to this Extension, the Water item; Exclusion of the Businessowners Coverage if a blanket Limit Insurance is Form does not apply to loss or damage caused directly or indirectly by flood, sur- waves (including tidal wave and face water (b) Covered on a scheduled basis for , tsunami), tides, tidal water, overflow of any each item of tools and equipment body of water, or spray from any of these, that you own that is specifically de- all whether or not driven by wind (including scribed in the Schedule, and for storm surge). which a Limit of Insurance is shown. f. With respect to this Extension the following (3) The most we will pay for loss or damage additional exclusions apply: in any one occurrence is the applicable We will not pay for loss or damage caused Limit of Insurance shown in the Sche- by or resulting from any of the following: dule. 1. Theft of any property covered under this 3. Coverage 3 - Non-Owned Tools And Extension from any unattended vehicle Equipment Coverage unless, at the time of theft, the vehicle's When a Limit of Insurance is shown in the windows, doors and compartments were Schedule, Covered Property includes contrac- closed and locked, and there are visible tors' non-owned tools and equipment leased or signs that the theft was a result of forced rented from others that are in your care, custo- entry. But this exclusion does not apply dy or control. to property in the custody of a carrier for The most we will pay for loss or damage in any hire. one occurrence is the Limit of Insurance for 2. The weight of a load when it exceeds Coverage 3 - Non-Owned Tools And Equip- the designed capacity of any property ment shown in the Schedule. covered under this Extension to lift, move or support the load from any posi- tion. Page 4 of 5 OO Insurance Services Office, Inc., 2008 BP 07 01 08 08 ? 4. Coverage 4 - Employees' Tools Coverage E. The following is added to Section H. Definitions: When a Limit of Insurance is shown in the "Temporary storage location" means a location Schedule, Covered Property includes your where property that is to become a permanent part Employees' Tools which are used in connec- of a completed project is stored while waiting to be tion with your operations. delivered to a job site: The most that we will pay for loss or damage in 1. That you do not own, lease or operate; and any one occurrence to Employees' Tools will 2. Where work is in progress, or will begin in 30 not exceed the amount shown in the Schedule. days. F. For the coverage provided by this endorsement, the definition of "specified causes of loss" in Para- graph H.12. Definitions is amended to include theft. BP 07 01 08 08 0 Insurance Services Office, Inc., 2008 Page 5 of 5 ? BP 2000 08 10 THIS ENDORSEMENT CHANGES YOUR POLICY. PLEASE READ IT CAREFULLY. DEFINITION OF OCCURRENCE This endorsement modifies insurance provided under the following: Section II - LIABILITY Subsection F. Liability And Medical Expenses Definitions Definition 13, "Occurrence", is hereby deleted in its entirety and replaced with the following: 13. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions, including "property damage" to "your work" arising out of "your work" or any part of it, when such "property damage" is included in the definition of "products-completed operations hazard" and the damaged work or the work out of which it arises was performed on your behalf by your subcontractor. THIS ENDORSEMENT SHALL BE EFFECTIVE AS OF THE POLICY'S INCEPTION DATE UNLESS INDICATED OTHERWISE IN THE SPACE BELOW. ALL OTHER POLICY TERMS AND CONDITIONS APPLY. BP 2000 08 10 MMG Insurance Company Page 1 IL N 088 09 03 PENNSYLVANIA FRAUD STATEMENT Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information, or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties. IL N 088 09 03 0 ISO Properties, Inc., 2003 Page 1 of 1 MMG IDR 02-09 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. IDENTITY RECOVERY COVERAGE IDENTITY THEFT CASE MANAGEMENT SERVICE AND EXPENSE REIMBURSEMENT The following is added as an Additional Coverage to dishonesty or criminal act. the Property section: 3. An "identity theft" that is not reported in writing to the police. IDENTITY RECOVERY COVERAGE We will provide the Case Management Service and Expense Reimbursement Coverage indicated below if all of the following requirements are met: 1. There has been an "identity theft" involving the personal identity of an "identity recovery insured" under this policy; and 2. Such "identity theft" is first discovered by the "identity recovery insured" during the policy period for which this Identity Recovery coverage is applicable; and 3. Such "identity theft" is reported to us within 60 days after it is first discovered by the "identity recovery insured." If all three of the requirements listed above have been met, then we will provide the following to the "identity recovery insured": 1. Case Management Service Services of an "identity recovery case manag- er" as needed to respond to the "identity theft"; and 2. Expense Reimbursement Reimbursement of necessary and reasonable "identity recovery expenses" incurred as a direct result of the "identity theft." This coverage is additional insurance. EXCLUSIONS The following additional exclusions apply to this coverage: We do not cover loss or expense arising from any of the following. 1. The theft of a professional or business identity. 2. Any fraudulent, dishonest or criminal act by an "identity recovery insured" or any person aiding or abetting an "identity recovery insured", or by any authorized representative of an "identity recovery insured", whether acting alone or in collusion with others. However, this exclusion shall not apply to the interests of an "identity recovery insured" who has no knowledge of or involvement in such fraud, LIMITS Case Management Service is available as needed for any one "identity theft' for up to 12 consecutive months from the inception of the service. Expenses we incur to provide Case Management Service do not reduce the amount of limit available for Expense Reimbursement coverage. Expense Reimbursement coverage is subject to a limit of $15,000 annual aggregate per "identity recovery insured." Regardless of the number of claims, this limit is the most we will pay for the total of all loss or expense arising out of all "identity thefts" to any one "identity recovery insured" which are first discovered by the "identity recovery insured" during a 12-month period starting with the beginning of the present annual policy period. If an "identity theft" is first discovered in one policy period and continues into other policy periods, all loss and expense arising from such "identity theft" will be subject to the aggregate limit applicable to the policy period when the "identity theft" was first discovered. Legal costs as provided under item d. of the definition of "identity recovery expenses" are part of, and not in addition to, the Expense Reimbursement coverage limit. Item e. (Lost Wages) and item f. (Child and Elder Care Expenses) of the definition of "identity recovery expenses" are jointly subject to a sublimit of $5,000. This sublimit is part of, and not in addition to, the Expense Reimbursement coverage limit. Coverage is limited to wages lost and expenses incurred within 12 months after the first discovery of the "identity theft" by the "identity recovery insured." Item g. (Mental Health Counseling) of the definition of "identity recovery expenses" is subject to a sublimit of $1,000. This sublimit is part of, and not in addition to, the Expense Reimbursement coverage limit. Coverage is limited to counseling that takes place within 12 months after the first discovery of the "identity theft" by the "identity recovery insured." MMG IDR 02-09 Page 1 of 3 MMG IDR 02-09 Item h. (Miscellaneous Unnamed Costs) of the definition of "identity recovery expenses" is subject to a sublimit of $1,000. This sublimit is part of, and not in addition to, the Expenses Reimbursement coverage limit. Coverage is limited to costs incurred within 12 months after the first discovery of the "identity theft" by the "identity recovery insured." DEDUCTIBLE Case Management Service is not subject to a deductible. Expense Reimbursement coverage is not subject to a deductible. 2. All services may not be available or applicable to all individuals. For example, "identity recovery insureds" who are minors or foreign nationals may not have credit records that can be provided or monitored. Service in Canada will be different from service in the United States and Puerto Rico in accordance with local conditions. 3. We do not warrant or guarantee that our services will end or eliminate all problems associated with an "identity theft" or prevent future "identity thefts." 191:441 IItF41kF9 CONDITIONS The following additional conditions apply to this coverage: A. Help Line For assistance, the "identity recovery insured" should call the Identity Recovery Help Line at 1-877-520-9564. The Identity Recovery Help Line can provide the "identity recovery insured" with: 1. Information and advice for how to respond to a possible "identity theft"; and 2. Instructions for how to submit a service request for Case Management Service and/or a claim form for Expense Reimbursement Coverage. In some cases, we may provide Case Management services at our expense to an "identity recovery insured" prior to a determination that a covered "identity theft" has occurred. Our provision of such services is not an admission of liability under the policy. We reserve the right to deny further coverage or service if, after investigation, we determine that a covered "identity theft" has not occurred. As respects Expense Reimbursement Coverage, the "identity recovery insured" must send to us, within 60 days after our request, receipts, bills or other records that support his or her claim for "identity recovery expenses." B. Services The following conditions apply as respects any services provided by us or our designees to any "identity recovery insured" under this endorsement: 1. Our ability to provide helpful services in the event of an "identity theft" depends on the cooperation, permission and assistance of the "identity recovery insured." With respect to the provisions of this endorsement only, the following definitions are added: 1. "Identity Recovery Case Manager" means one or more individuals assigned by us to assist an "identity recovery insured" with communications we deem necessary for re-establishing the integrity of the personal identity of the "identity recovery insured." This includes, with the permission and cooperation of the "identity recovery insured," written and telephone communications with law enforcement authorities, governmental agencies, credit agencies and individual creditors and businesses. 2. "Identity Recovery Expenses" means the following when they are reasonable and necessary expenses that are incurred as a direct result of an "identity theft": a. Costs for re-filing applications for loans, grants or other credit instruments that are rejected solely as a result of an "identity theft." b. Costs for notarizing affidavits or other similar documents, long distance telephone calls and postage solely as a result of your efforts to report an "identity theft" or amend or rectify records as to your true name or identity as a result of an "identity theft." c. Costs for credit reports from established credit bureaus. d. Fees and expenses for an attorney approved by us for the following: (1) The defense of any civil suit brought against an "identity recovery insured." (2) The removal of any civil judgment wrongfully entered against an "identity recovery insured." (3) Legal assistance for an "identity recovery insured" at an audit or hearing by a governmental agency. MMG OR 02-09 Page 2 of 3 MMG [DR 02-09 (4) Legal assistance in challenging the accuracy of the "identity recovery insured's" consumer credit report. (5) The defense of any criminal charges brought against an "identity recovery 3. Identity Recovery Insured„ means the following: insured" arising from the actions of a third a. A full time employee of the entity insured under party using the personal identity of the this policy; or "identity recovery insured." b. An owner of the entity insured under this policy e. Actual lost wages of the "identity recovery who meets any of the following criteria: insured" for time reasonably and necessarily (1) A sole proprietor of the insured entity; taken away from work and away from the work (2) A partner in the insured entity; or premises. Time away from work includes partial or whole work days. Actual lost wages (3) An individual having an ownership may include payment for vacation days, position of 20% or more of the insured discretionary days, floating holidays and paid entity. personal days. Actual lost wages does not An "identity recovery insured" must always be an include sick days or any loss arising from time individual person. The entity insured under this taken away from self employment. Necessary policy is not an "identity recovery insured." time off does not include time off to do tasks 4. "Identity Theft" means the fraudulent use of the that could reasonably have been done during social security number or other method of non-working hours. identifying an "identity recovery insured." This f. Actual costs for supervision of children or includes fraudulently using the personal identity of elderly or infirm relatives or dependants of the an "identity recovery insured" to establish credit "identity recovery insured" during time accounts, secure loans, enter into contracts or reasonably and necessarily taken away from commit crimes. such supervision. Such care must be provided "Identity theft" does not include the fraudulent use by a professional care provider who is not a of a business name, d/b/a or any other method of relative of the "identity recovery insured." identifying a business activity. g. Actual costs for counseling from a licensed All other provisions of this policy apply. mental health professional. Such care must be provided by a professional care provider who is not a relative of the "identity recovery insured." h. Any other reasonable costs necessarily incurred by an "identity recovery insured" as a direct result of the "identity theft." Such costs include: (1) Costs by the "identity recovery insured" to recover control over his or her personal identity. (2) Deductibles or service fees from financial institutions. Such costs do not include: (3) Costs to avoid, prevent or detect "identity theft" or other loss. (4) Monies lost or stolen. (5) Costs that are restricted or excluded elsewhere in this endorsement or policy. MMG IDR 02-09 Page 3 of 3 MM063 06 10 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION - LEAD LIABILITY This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE FORM - SECTION II LIABILITY SECTION II - LIABILITY is amended as follows: A. The following is added to SECTION II - LIABILITY paragraph B. Exclusions. This insurance does not apply to: 1. "Bodily Injury", "Property Damage" or "Personal and Advertising Injury" arising, in whole or in part, either directly or indirectly out of the mining, processing, manufacture, storage, distribution, sale, installation, removal, disposal, handling, inhalation, ingestion, absorption, use or existence of, exposure to, or contact with lead or lead contained in goods, products or materials; or 2. Any loss, cost or expense arising out of any: a. Request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of lead or lead contained in goods, products or materials; or b. Claim or suit by or on behalf of a governmental 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 lead or lead contained goods, products or materials. MM063 06 10 Includes copyrighted material of Insurance Services Office, Inc., with its permission Page 1 ST0002(05-06) Extended Broad Form Property Damage Liability This endorsement modifies insurance provided under the following: Businessowner Coverage Form Section H Liability Schedule Limit of Insurance: $25,000. per occurrence A. The following provision is added to Section B B. $25,000. less the Property Damage Deductible Exclusions: in the Declarations is the most we will pay for the "Property Damage" covered by this Exclusion k. (4) does not apply to Personal endorsement. Property in your care, custody or control which is to be installed, erected or used in construction by the insured. Exclusion k. (5) is deleted. 1 ST0002(05-06) ST0003(05-06) Theft of Covered Property from any Unattended Vehicle This endorsement modifies insurance provided under the following: Contractors' Installation, Tools and Equipment Coverage - BP 07 01 (07-02) A. The following provision is added to Section B Exclusions: Exclusions B.3.o - Theft of Covered Property from any unattended vehicle is deleted. B. Deductible: Each loss shall be adjusted separately, and from the amount of such adjusted loss, the policy deductible shall apply. ST0003(05-06) ZMHC 01 PA 11 06 NOTICE OF MEMBERSHIP IN MAINE MUTUAL GROUP AND NOTICE OF ANNUAL MEETING By virtue of this policy, the Insured is a Member of Maine Mutual Group, a mutual holding company of MMG Insurance Company, and is entitled to vote either in person or by proxy at any and all meetings of Maine Mutual Group. The annual meeting of Maine Mutual Group is held at the Home Office of MMG Insurance Company, Presque Isle, Maine, on the second Wednesday of April in each year at 10:00 o'clock A.M., local time. The By-laws of Maine Mutual Group establish procedures for business to be properly brought before an annual or special meeting by a Member, including timely notice thereof by a Member to the Clerk of the Corporation not less than 120 days prior to the meeting. The By-laws also contain provisions for nominations by Members for elections to the Board of Maine Mutual Group, which require a petition signed by voting Members to be filed with the Secretary of the Corporation not later than 120 days before the date of the annual meeting at which the persons nominated are to be voted upon. The By-laws set forth additional procedures regarding proper business at meetings and nominations to the Board by Members. Copies of the By-laws of the Corporation may be obtained by voting Members on written. request to the Secretary of the Corporation. rf 1 Larry M. Shaw, President and CEO Michael M. Young, CFO ZMHC 01 PA 11 06 Maine Mutual Group Page 1 of 1 ???? ??"? /t . Ronald L. Finck, Esquire Sup. Ct. I.D. #89985 METTE, EVANS & WOODSIDE 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 Phone: (717) 232-5000 Fax: (717) 236-1816 rlfinckOmette.coin P ROGER STIVAL, JR. and JUDY BEITZEL-STIVAL, Plaintiffs V. BRIAN DORSEY t/d/b/a DORSEY CONSTRUCTION Defendant FILED-OFFICE O THE PROTHONOTAR t" 2911 NOY 30 Pty 1: 17 CUMBERLAND COUNTY PENNSYLVANIA IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY PENNSYLVANIA NO. / oil CIVIL ACTION - LAW JURY TRIAL DEMANDED NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Assoc& lon r 34 S. Bedford St, RECORD Carlisle, PA 17013 TP.U9 dOO f FROM Telephone: (717) 249-3166 In Teffil?Y 6erpof, I here unto set my hand and ft's f' said aarlisl Pa• ThIS tl 20LLt_ f` 11 4 Ronald L. Finck, Esquire Pa. Sup. Ct. I.D. No. 89985 METTE, EVANS & WOODSIDE 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 Phone: (717) 232-5000 Fax: (717) 236-1816 rlfine,k@mette.com P. ROGER STIVAL, JR. and JUDY BEITZEL-STIVAL, Plaintiffs IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA V. BRIAN DORSEY t/d/b/a DORSEY CONSTRUCTION, Defendant NO. CIVIL ACTION - LAW : JURY TRIAL DEMANDED COMPLAINT The Plaintiffs, Roger Stival, Jr. and Judy Beitzel-Stival (collectively the "Plaintiffs") by and through their attorneys, METTE, EVANS & WOODSIDE, file this Complaint against the Defendant, Brian Dorsey t/d/b/a Dorsey Construction ("Defendant" or "Dorsey"), averring as follows: Parties 1. Plaintiffs are adult individuals and husband and wife with a principal residence at 1000 Highfield Court, Mechanicsburg, PA 17055. 2. Defendant Dorsey is an adult individual with a principal address at 61 Lenwood Park, Shippensburg, PA 17257. 3. Dorsey trades and does business under the name Dorsey Construction. 4. Dorsey Construction is not a registered business entity with the Pennsylvania Corporations Bureau. 5. Dorsey Construction is not registered with the Pennsylvania Corporations Bureau as a fictitious name. 6. Dorsey Construction is registered with the Office of the Pennsylvania Attorney General as a home improvement contractor with HIC No. PA033015. Jurisdiction and Venue 7. Jurisdiction and venue are appropriate in this Court because the events and transactions out of which Plaintiffs' causes of action arose occurred in Cumberland County, Pennsylvania. BACKGROUND Plaintiffs are the owners of a two-story residential home located at 1000 Highfield Court, Mechanicsburg, Monroe Township, Cumberland County, Pennsylvania, 17055 (the "Residence") 9. Prior to February of 2011, the Plaintiffs resolved to perform significant alterations to the Residence, including a kitchen remodel, a master bathroom remodel, a first floor expansion, the construction of a back porch, and the addition of a one-car garage (collectively the "Work") 10. Beginning in approximately February of 2011, the Plaintiffs solicited proposals from Dorsey and from one other contractor to perform the Work. 11. At all times relevant hereto, Dorsey held himself out to the Plaintiffs as having the requisite knowledge, experience, and capacity to perform the Work. 2 12. Dorsey specifically informed the Plaintiffs that the Work would be performed by his crew of six people. 13. After a series of discussions between the Plaintiffs and Dorsey, on or about May 5, 2011, Dorsey provided the Plaintiffs with a series of five, separate, written estimates outlining distinct aspects of the Work to be performed. 14. Attached to the front of each of the estimates was a document titled "Proposal and Contract for Construction or Repairs (Owner-Contractor)." 15. Each "Proposal and Contract for Construction or Repairs (Owner-Contractor)" was signed by Dorsey on May 6, 2011, with the exception of the proposal/contract addressing the addition of the garage, which was signed by Dorsey on May 12, 2011. 16. On or about May 7, 2011, Dorsey provided the Plaintiffs with five, separate draw schedules; each addressing the financing of each aspect of the Work to be performed. 17. The proposal/contract, the estimate, and the draw schedule for each of the five aspects of the Work were appended to one-another. 18. The Plaintiffs signed each of the five proposal/contracts and returned same to Dorsey on our about June 14, 2011. 19. A copy of the proposal/contract, estimate and draw schedule addressing the kitchen remodel portion of the Work (collectively the "Kitchen Remodel Contract") is attached hereto as Exhibit `A' and made a part hereof by reference. 20. A copy of the proposal, estimate and draw schedule addressing the master bathroom remodel portion of the Work (collectively the "Bathroom Remodel Contract") is attached hereto as Exhibit `B' and made a part hereof by reference. 3 21. A copy of the proposal, estimate and draw schedule addressing the expansion (collectively the "Expansion Contract") is attached hereto as Exhibit `C' and made a part hereof by reference. 22. A copy of the proposal, estimate and draw schedule addressing the addition of a back porch onto the Residence (collectively the "Porch Contract") is attached hereto asExhibit `D' and made a part hereof by reference. 23. A copy of the proposal, estimate and draw schedule addressing the addition of a room off to the side of the existing garage on the Residence (collectively the "Garage Contract") is attached hereto as Exhibit `E' and made a part hereof by reference. 24. On or about June 3, 2011, Dorsey submitted an Application for Residential Zoning and/or. Building Permit to Monroe Township. A true and correct copy of the June 3, 2011 application is attached hereto as Exhibit `F' and made a part hereof by reference. 25. The Application submitted to Monroe Township (Exhibit `F') does not include any of the work contemplated by the Bathroom Remodel Contract or the Kitchen Remodel Contract. 26. On June 28, 2011, the Application attached hereto as Exhibit `F' was accepted by Monroe Township. 27. At Dorsey's instructions, on July 2, 2011, Plaintiffs issued a check in the amount of $18,500.00 made payable to `Dorsey Construction.' 28. Dorsey explained to the Plaintiffs that the $18,500.00 check was intended to pay for the first draws on the Porch Contract ($4,000.00), the Expansion Contract ($7,500.00) and the Garage Contract ($7,000.00). 4 Rf 29, In or about the week of July 18, 2011, an excavator hired by Dorsey came to the Residence to begin excavation work in connection with the Porch Contract, the Expansion Contract, and the Garage Contract. 30. The excavator was not identified in any of the written contracts. 31 On or about July 26, 2011, cement blocks were delivered to the Residence. 32. An unidentified subcontractor began laying the cement block on or about August 5, 2011. 33. On or about August 8, 2011, Dorsey arranged for the pouring of a concrete pad in connection with the Porch Contract and a concrete pad in connection with the Garage Contract. 34. Pre-fabricated wood trusses arrived at the Residence on or about August 12, 2011. 35. In or about early August of 2011, Dorsey proposed that in addition to the Work, Dorsey would also install a new roof on the existing portion of the Residence. 36. In connection with the proposed roofing project, Dorsey provided the Plaintiffs with an estimate dated August 17, 2011. A true and correct copy of the August 17, 2011 estimate is attached hereto as Exhibit `G' and made a part hereof by reference. 37. The Plaintiffs verbally agreed to the August 17, 2011 estimate. 38. The Plaintiffs did not sign the August 17, 2011 estimate. 39. The installation of the new roof on the existing portion of the Residence is referred to hereafter as part of the Work. 40. On or about August 19, 2011, Dorsey demanded a second check in the amount of $37,500.00 from the Plaintiffs. 41. Dorsey made the demand to Plaintiff, Judy Beitzel-Stival ("Judy"). 42. Dorsey represented to Judy that he had discussed the second payment with Plaintiff, Roger Stival ("Roger") and that Roger had authorized the payment to be made. 43. Roger never authorized the second draw in the amount of $37,500.00. 44. As demanded, Judy submitted a check on behalf of the Plaintiffs in the amount of $37,500.00 to Dorsey. 45. It is unknown to the Plaintiffs how Dorsey intended to apply the $37,500.00 payment. 46. Dorsey began framing for the Porch Contract, the Garage Contract and the Expansion Room Contract in or about mid-August of 2011. 47. On or about August 24, 2011, the Plaintiffs discovered that Dorsey had unilaterally altered the dimensions of the garage and had failed to leave enough space to include a brick fagade on the garage addition as per the written provisions of the Garage Contract (Exhibit `E') 48. On Thursday, August 25, 2011, Dorsey began removing the existing shingle roof on the Residence. 49. Cumberland County experienced a hurricane beginning on or about Saturday, August 27, 2011. The National Weather Service named the hurricane "Irene." 50. At approximately 6:30 a.m. on Sunday, August 28, 2011, the Plaintiffs discovered significant flood damage in the existing kitchen of the Residence, in their existing garage, in the new garage, and in the expansion. 51. The Plaintiffs contacted Dorsey and informed Dorsey of the flood damage caused by the hurricane. 6 52. Dorsey came to the Residence on August 28, 2011 and put a tarp over a portion of the Residence; where the existing portion of the roof on the Residence met with the new portion of the roof under construction. 53. Between August 28, 2011 and September 2, 2011, Dorsey continued removing shingles from the existing portion of the Residence's roof. 54. Dorsey failed to take steps necessary to protect the interior of the Residence from the elements until the new roof could be put in place. 55. During the period beginning August 28, 2011 until September 5, 2011, the Residence was subject to a substantial amount of additional rainfall. 56. On or about September 4, 2011, the Plaintiffs discovered that the interior of the Residence had been significantly damaged by flooding. 57. The Plaintiffs contracted with Accord Restoration Company and Musser Home Builders to mitigate and repair the damage to the interior of the Residence. 58. A report prepared by Accord Restoration Company identifying the damage to the Residence as a result of Dorsey's failure to protect the Residence's interior from the elements during the installation of the new roof is attached hereto as Exhibit `H' and made a part hereof by reference. 59. Plaintiffs were advised by Musser Builders that much of the partially performed Work by Dorsey is substandard and will have to be corrected. A true and correct copy of a written report dated September 14, 2011 from Musser Home Builders identifying some of the known deficiencies and estimating the costs of repair is attached hereto as Exhibit `I' and made a part hereof by reference. 7 60. The Plaintiffs terminated all contracts with Dorsey on Monday, September 5, 2011. 61. Plaintiffs contracted with Musser Builders to remediate the damage to the Residence caused by Dorsey, to repair the substandard, partial performance of the Work, and to finish the Work. 62. Upon demand, Dorsey has failed and refuses to return unexpended monies that are or should be in the possession of Dorsey from the Plaintiffs. 63. After the Plaintiffs terminated Dorsey they discovered that Dorsey failed to submit any plans for the Kitchen Remodel Contract and the Bathroom Remodel Contract to Monroe Township as required by law. COUNT I - BREACH OF EXPANSION CONTRACT 64. The allegations of all paragraphs above are incorporated herein by reference as if fully set forth.. 65. The Expansion Contract is a binding contract supported by adequate consideration. 66, Dorsey's failure to perforni the Expansion Contract portion of the Work in a workmanlike manner and in accordance with the terms of the contract constitutes a breach of the contract. 67. Plaintiff has suffered damages and will continue to suffer damages as a direct and proximate result of Dorsey's breach of the agreement. 68. The exact amount of damages suffered by the Plaintiffs is presently unknown to the Plaintiffs but is believed to be in excess of $60,000.00. 8 I , WHEREFORE, Plaintiffs respectfully request that this Court enter judgment in their favor and against the Defendant, in the amount in excess of $60,000.00, together with post- judgment interest at the legal rate, costs, and such other relief as. this Court shall deem just and appropriate under the circumstances. COUNT II - BREACH OF GARAGE CONTRACT 69. The allegations of all paragraphs above are incorporated herein by reference as if fully set forth. 70. The Garage Contract is a binding contract supported by adequate consideration, 71. Dorsey's failure to perform the Garage Contract portion of the Work in a workmanlike manner and in accordance with the terms of the contract constitute a breach of the contract. 72. Plaintiff has suffered damages as a direct and proximate result of Dorsey's breach of the agreement. 73. The exact amount of damages suffered by the Plaintiffs is presently unknown to the Plaintiffs but is believed to be in excess of $30,000.00. WHEREFORE, Plaintiffs respectfully request that this Court enter judgment in their favor and against the Defendant, in the amount in excess of $30,000.00, together with post- judgment interest at the legal rate, costs, and such other relief as this Court shall deem just and appropriate under the circumstances. COUNT III - BREACH OF PORCH CONTRACT 74. The allegations of all paragraphs above are incorporated herein by reference as if fully set forth. 9 ?r 75. The Porch Contract is a binding contract supported by adequate consideration. 76. Dorsey's failure to perform the Porch Contract portion of the Work in a workmanlike manner and in accordance with the terms of the contract constitute a breach of the contract. 77. Plaintiff has suffered damages as a direct and proximate result of Dorsey's breach of the agreement. 78. The exact amount of damages suffered by the Plaintiffs is presently unknown to the Plaintiffs but is believed to be in excess of $50,000.00. WHEREFORE, Plaintiffs respectfully request that this Court enter judgment in their favor and against the Defendant, in the amount in excess of $50,000.00, together with post- judgment interest at the legal rate, costs, and such other relief as this Court shall deem just and appropriate under the circumstances. COUNT IV - BREACH OF KITCHEN REMODEL CONTRACT 79. The allegations of all paragraphs above are incorporated herein by reference as if fully set forth. 80, The Kitchen Remodel Contract is a binding contract supported by adequate consideration. 81. Dorsey did not begot work on the Kitchen Remodel Contract portion of the Work within a reasonable amount of time from the signing of the Kitchen Remodel Contract. 82. As a result of Dorsey's failure to perform the Kitchen Remodel Contract within a reasonable amount of time, Plaintiffs were required to contract with Musser to complete the work contemplated by the Kitchen Remodel Contract. 10 it 83. It is believed and therefore averred that it will cost the Plaintiffs more for Musser to perform the Kitchen Remodel Contract portion of the Work than the price quoted by Dorsey. 84. Plaintiff has suffered and will suffer damages as a direct and proximate result of Dorsey's breach of the agreement. 85. The exact amount of damages suffered by the. Plaintiffs is presently unknown to the Plaintiffs but is believed to be in excess of $50,000.00. WHEREFORE, Plaintiffs respectfully request that this Court enter judgment in their favor and against the Defendant, in the amount in excess of $50,000.00, together with post- judgment interest at the legal rate, costs, and such other relief as this Court shall deem just and appropriate under the circumstances. COUNT V - BREACH OF BATHROOM REMODEL CONTRACT 86. The allegations of all paragraphs above are incorporated herein by reference as if fully set forth. 87. The Bathroom Remodel Contract is a binding contract supported by adequate consideration. 88. Dorsey did not begin work on the Bathroom Remodel Contract portion of the Work within a reasonable amount of time from the signing of the Bathroom Remodel Contract. 89. As a result of Dorsey's failure to perform the Bathroom Remodel Contract within a reasonable amount of time, Plaintiffs were required to contract with Musser to complete the work contemplated by the Bathroom Remodel Contract. 11 r 90. It is believed and therefore averred that it will cost the Plaintiffs more for Musser to perform the Bathroom Remodel Contract portion of the Work than the price quoted by Dorsey. 91. Plaintiff has suffered and will suffer damages as a direct and proximate result of Dorsey's breach of the agreement. 92. The exact amount of damages suffered by the Plaintiffs is presently unknown to the Plaintiffs but is believed to be in excess of $30,000.00. WHEREFORE, Plaintiffs respectfully request that this Court enter judgment in their favor and against the Defendant, in the amount in excess of $30,000.00, together with post- judgment interest at the legal rate, costs, and such other relief as this Court shall deem just and appropriate under the circumstances. COUNT VI -BREACH OF ROOFING CONTRACT 93. The allegations of all paragraphs above are incorporated herein by reference as if fully set forth. 94. The Roofing Contract is a binding contract supported by adequate consideration. 95. Dorsey's failure to perform the Roofing Contract portion of the Work in a workmanlike manner and in accordance with the terms of the contract constitutes a breach of the contract. 96. Plaintiff has suffered damages and will continue to suffer damages as a direct and proximate result of Dorsey's breach of the agreement. 97. The exact amount of damages suffered by the Plaintiffs is presently unknown to the Plaintiffs but is believed to be in excess of $30,000.00. 12 98, WHEREFORE, Plaintiffs respectfully request that this Court enter judgment in their favor and against the Defendant, in the amount in excess of $30,000.00, together with post- judgment interest at the legal rate, costs, and such other relief as this Court shall deem just and appropriate under the circumstances. COUNT VII - VIOLATION OF THE PENNSYLVANIA HOME IMPROVEMENT CONSUMER PROTECTION ACT 99. The allegations of all paragraphs above are incorporated herein by reference as if fully set forth. 100. Plaintiffs have standing to bring this claim under the Pennsylvania Home Improvement: Consumer Protection Act, 73 P.S. §517.1 et seq ("HICPA"). 101. Dorsey is a contractor as defined by 73 P.S. §517.2. 102. Dorsey is registered under HICPA. 103. The Work qualifies as a home improvement under 73 P.S. §517.2. 104. Dorsey violated HICPA in the following manners, among others: (a) Failing to include its registration number on all contracts, estimates and proposals as required by 73 P.S. §517.5 and §517.7(x)(1); (b) Failing to put all contracts in writing as required by §517.7(x)(1); (c) Failing to include with the contracts copies of required notices under 73 P.S. §517.7(a)(3); (d) Failing to include with the contracts the date of the transaction as required by 73 P.S. §517.7(a)(4); 13 ii (e) Failing to include within the contracts the approximate starting date and completion date as required by 73 P.S. §517.7(a)(6); (f) Failing to include within the contracts a set of specifications as required by 73 P.S. §517.7(a)(7); (g) Failing to include the names, addresses and telephone numbers of all subcontractors on the project as required by 73 P.S. §517(a)(10); (h) Failing to include within the contracts an agreement to maintain liability insurance covering personal injury and property damage in amounts not less than $50,000.00 as required by 73 P.S. §517.7(a)(11); (i) Failing to include within the contracts the toll-free telephone number for public access to registration information as required by 73 P.S. §517.7(a)(12); 0) Failing to include within the contract a notice of the right of rescission as required by 73 P.S. §517.7(a)(13); (k) Failing, upon demand, to refund the amount paid for a home improvement in accordance with the requirements of §517.9(2); (1) Deviating and/or disregarding plans or specifications without a written change order in accordance with the requirements of §5179(6); and 14 (m) Receiving deposits in excess of one-third of the home improvement contract price in contravention of 73 P.S. §517.9. 105, As a result of Dorsey's violations of HICPA, Plaintiffs have suffered or will suffer actual damages in an amount in excess of $250,000.00. WHEREFORE, Plaintiffs respectfully request that this Court enter judgment in their favor and against the Defendant, in the amount in excess of $250,000.00, together with post- judgment interest at the legal rate, costs, and such other relief as this Court shall deem just and appropriate under the circumstances. COUNT VIII - VIOLATION OF THE PENNSYLVANIA UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW 106. The allegations of all paragraphs above are incorporated herein by reference as if fully set forth, 107. Dorsey's violations of HICPA constitute violations of the Pennsylvania Unfair Trade Practices and Consumer Protection Law, 73 P. S. §201.1 et seq. ("UTPCPL") pursuant to 73 P.S. §517.10. WHEREFORE, Plaintiffs respectfully request that this Court enter judgment in their favor and against the Defendant, as follows: (1) in the amount of actual damages sustained; (2) for an amount three times the amount of actual damages suffered pursuant to 73 PS, §201-9.2(a); (3) for interest and costs; (4) for attorneys' fees; and (5) for such other relief as the Court deems just an appropriate under the circumstances. 15 I, Respectfully submitted, METTE, EVANS & WOODSIDE By: (&?? --t - Ronald L. Finck, Esquire Sup. Ct. I.D. No. 89985 3401 North Front Street P. O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax r1finck0mette.com Attorneys for Plaintiffs Date: November 29, 2011 16 VERIFICATION I, P. Roger Stival, Jr., have read the foregoing document and verify that the facts set forth therein are true and correct to the best of my knowledge, information and belief. To the extent that the foregoing document and/or its language is that of counsel, I have relied upon counsel in making this Verification. I understand that any false statements made herein are subject to the penalties of 18 Pa. C.S. §4904 relating tc; <.Insworn falsification to authorities. DATE: P. ROGER STIVAL, JR. 543183vi VERIFICATION 1, Judy Beitzel-Stival, have read the foregoing document and verify that the facts set forth therein are true and correct to the best of my knowledge, information and belief. To the extent that the foregoing document and/or its language is that of counsel, I have relied upon counsel in making this Verification. I understand that any false statements made herein are subject to the penalties of 18 Pa. C.S. §4904 relating to unworn falsification to thorities. DATE: d l l I d, J °? Y B ITZEL- IVAL PROPOSAL AND CONTRACT FOR CONSTRUCTION OR REPAIRS (OWNER-CONTRACTOR) Contractor - y I Owner Address Address city, State, ZIP / City, State, Zip Phone • _ - / Phone r ? ?? License Number 30/ '' ProjectNurnber rj Project Name - Project Address Project Description Lender _ r Address City, State Zip Phone Project (Legal Description ) Other Contract Documents (identify all plans, specifications, addendums, etc.) Work involved Commencement of Work Completion of Work [ ] Upon _ _ days notice from Owner within [ ]within days commencement of work days of acceptance. [ }other ] Other Initial Payment Final Contract Price $ ?- $ total with $ credited to owner on each Application for Payment until full credited. Final Payment including any retention to be paid within days of Progress Payments Less a %retention to be paid within Application for Work Completed days of Notice of - Completion by the day of month and Application for Final Payment Termination of Proposal Date Proposal Prepared Warranty Period on if not accepted before ears from completion. Additional Provisions Instructions: Contractor completes and executes three copies and delivers two to Owner. Owner accepts proposal by executing and returning one co to contractor before proposal termination date Proposal by Contractor -194 v te Signature Title Signature Title Date Acceptance by Owner(s) Signature Title (if applicable) Date i Signature Title (if applicable) Date STANDARD PROVISIONS OF PROPOSAL AND CONTRACT FOR CONSTRUCTION OR REPAIRS 1. Subcontractors. Contractor at his discretion may delegate any portion of the work by Subcontractor with responsible Subcontractors but such delegation shall not relieve Contractor of full responsibility for the work. Any corresponding subcontract shall require the Subcontractor to be bound to the full terms of this Contract to the extent of his work, and it shall allow the Subcontractor the benefit of the same rights and remedies afforded the Contractor by this Contract. 2. Work Involved. All work will be performed, in a workmanlike fashion according to the plans and specifications identified. 3. Time of Commencement and Substantial Completion. The work shall be convened and, subject to adjustments, substantially completed within the time limits given on the reverse side but Contractor shall not be penalized for Acts of God, strikes, shortages of critical materials and other delays beyond his control. Upon notice by the Contractor of substantial completion of the Project the owner's representative shall tour the project with the contractor and provide contractor with a "Final Punch List" by which the contractor can fully complete his work. " Items not included in this Punch List shall be treated as Warranty Work, more fully discussed below. 4. Warranty Work. Contractor warrants to owner that all materials and equipment incorporated into the project will be new unless otherwise specified and further warrants, all materials and labor for the warranty work, which is not part of a subsidiary warranty from a materialman or subcontractor, will be at no cost to the owner. 5. Initial Payment. The initial payment shall be paid by Owner to Contractor prior to commencement or work and shall be used for acquisition of materials and site setup. Contractor shall partially credit owner for such initial payment in each application for payment in the amount shown, until the initial payment is fully credited. 6. Progress Payments. The Owner shall make the monthly progress payments less the given retention to Contractor for all unpaid work completed though the given day of each month based upon an Application for Payment submitted by Contractor. Such progress payments shall be made within given number of days or the receipt of such Application. If for any reason, any such progress payment is not received in full within such time Contractor shall have the right to cease work immediately sending written notice to Owner and to initiate any applicable legal proceedings to collect the amount due together with interest at 10% per annum. 7. Final Payment. All amounts held in retention together with any other unpaid portion of the contract or change orders shall be paid to the Contractor within the given number of days of Contractor's notification to Owner that the work is complete. 8. Effect of Final Payment. The making or the final payment shall constitute a waiver of all claims by Owner except those arising from unsettled liens, from failure of work, to comply with requirements of Contract documents, or from faulty or defective work appearing after standard completion or identified in the final punch list. In like manner, acceptance of final payment by Contractor constitutes a waiver of all claims not previously made to Owner in writing or identified as unsettled in the application for the final payment. 9. Conditions to Progress and Final Payments. Neither progress nor final payments from Owner to Contractor are conditioned upon receipt by Owner of corresponding draws from Owner's Lender. Owner may condition any progress or final payments to Contractor upon receipt from Contractor or appropriate lien waivers themselves conditioned upon receipt of the monies applied for. 10. Surveys, Legal Descriptions and Easements. Owner shall furnish all surveys and legal descriptions of the project, and Owner shall secure and pay for all necessary approvals, easements and charges required for use of occupancy of the project. 11. Professional Fees. Owner shall pay for all real estate fees, financing charges, accounting fees, legal fees, design fees, and engineering fees involved in the acquisition and development of land underlying the project as well as the construction of the project itself. 12. Liability and Property Insurance. Owner shall purchase and maintain both liability insurance for his own liability, and property insurance for the entire project; this property insurance shall include "all risk" coverage for theft and vandalism as well as the standard casualty coverage for fire and flood. 13. Supervision, Safety and Insurance. Contractor shall be responsible for all supervision and coordination of the work and for all responsible precautions needed to carry out such work in a manner safe for both the project and all person involved therein. Contractor shall secure and maintain all liability and Workmen's Compensation Insurance necessary for the work or himself and his subcontractors. If this Contract is performed as "cost plus" Contract all such supervision and insurance costs will he treated as job costs. 14, Administrative and Job Overhead Items. The following administrative and job overhead items are t) be absorbed by the Contractor in a fixed fee contract and to be treated as job costs in a cost-plus contract: Office overhead directly related to the project, construction schedules and project record documents, job storage and protection of job materials, as well as maintenance, replacement and rental or tools and equipment. 15. Construction Permits and Sales Taxes. Contractor shall comply with all laws, ordinances and regulations effecting construction of the project, and shall secure any pay for all necessary building and construction permits, and shall pay all sales taxes arising from the construction of the project. If this Contract is performed as "cost plus" contract in lieu of a fixed fee contract all such taxes and fees shall be treated as part of the job costs. 16. Legal Remedies. This Contract shall be governed by the laws of the State of?? and all applicable I-RA case law. All of the remedies available under those laws shall be available to the parties of the Contract. At the option of either parry any dispute arising hereunder may be submitted to arbitration. The prevailing party in any dispute arising will be awarded attorney's fees, arbitration and court costs as the court deems fair. 17. Assignment. This Contract may not be assigned by either party without the other party's written consent. 18. Modifications. All modifications to this Contract shall be in writing by change orders, purchase orders or similar documents signed by agents of both Owner and Contractor. 19. Notice of Completion. Should Owner for any reason record a Notice of Completion which operates to shorten the lien period he shall immediately notify Contractor of the Notice, and deliver a copy of that Notice to Contractor. 20. Acceptance. This Contract shall be executed in duplicate; Owner and Contractor shall each retain one of the original duplicates. This Contract is complete and binding when properly executed as indicated above. t. ( l Dorsey Construction 61 Lenwood Park Shippensburg„ PA 17257 Al Date 31512011 Estimate # 74 ROGER STIRAL P.O. # Terms CONTRACTOR LICENSE'S NUMBER PA033015 KITCHEN KITCHEN CABINETS COUNTER TOP W/ SINKS ELECTRICAL PLUMBERS LABOR HARDWOOD FLOORING 1 /2 X 10 DRYWALL VALSPAR INTERIOR SATIN PAINT TRIM TRIM NAILS FAUCETS STONE LABOR TOTAL k Dorsey Construct/on DORSFYCONST RUCTIONS 3Q HOTMA?L.... Due Date 31512011 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 32,000.00 32,000.00 Subtotal $32,000.00 Sales Tax (0.0%) $0.00 Total $32,000.00 717-729-8152 Y Dorsey Construction 61 Lenwood Park Shippensburg, PA 17257 Date 51712011 Estimate # 82 Tiv 11% 1 ROGER STIRAL j P.O. # Terms CONTRACTOR LICENSE'S NUMBER P4033015 KITCHEN REMODEL FIRST DRAW DEMO, CABINETS, ELECTRICAL, DRYWALL $ 12,000.00 SECOND DRAW FLOORING, PAINT, CABINETS, FINISH DRYWALL $ 10,000.00 THIRD DRAW (COMPLETION OF dab) TRIM, COUNTER TOPS, BATHROOM VANITY W/ TOP 0.00 Subtotal Sales Tax (0.-0%) Total Dorsey Construction DORSEYCONSTRUCTION3 3@ HOTMAIL... 717-729-9182 Page 1 Due Date 5/7/2011 Other 0.00 ( " Dorsey Construction 61 Lenwood Park Shippensburg, PA 17257 .,v Date 51712011 Estimate # 82 y '?. t%,'=t?'1`_.?.,._' - a ;.."F?',?. +.?i+'J?.T.S-'•? t?yT1 ?r;2Kis;4::!? ?r; ROGER STIRAL P.O. # Terms $ 10,000.00 Dorsey Construction DORSEYCONST UCTION33@HOTMAIL.... 717-729-8182 Due Date Other Page 2 51712011 Subtotal 80.00 Sales Tax (0.0%) 80.00 Total $0.00 PROPOSAL AND CONTRACT FOR CONSTRUCTION OR REPAIRS (OWNER-CONTRACTOR) Contractor - ) Owner Address - Address City, State, Zi 9 . 1. City, State, Zip Phone Phone License Number oject Number Project Name Project Address Project Description Lender Address City, State Zip Phone Project (Legal Description) Other Contract Documents (identify all plans, specifications, addendums, etc.) Work Involved Commencement of Work Completion of Work [ ] Upon _ days notice from Owner within [ ] within days commencement of work days of acceptance. [ } other Other Final Contract Price $ IJLO-L!9 - /y eva Initial Payment $ total with $ credited to owner on each Application for Payment until full credited. Final Payment Including any retention to be paid within days of Progress Payments Less a % retention to be paid within Application for Work Completed days of Notice of Completion by the day of month and Application for Final Payment Termination of Proposal Date Proposal Prepared Warranty Period on if not accepted before ears from completion. Additional Provisions Instructions: Contractor completes and executes three copies and delivers two to Owner. Owner accepts proposal by executing and returning one co to contractor before proposal termination date Proposal by Contractor 3 , / i l t Signature T e 5a to Signature Title Date Acceptance by Owner(s) pe, ? _21 _L_, Signature' Title (if applicable) Date Signature Title (if applicable) Date STANDARD PROVISIONS OF PROPOSAL AND CONTRACT FOR CONSTRUCTION OR REPAIRS 1. Subcontractors. Contractor at his discretion may delegate any portion of the work by Subcontractor with responsible Subcontractors but such delegation shall not relieve Contractor of full responsibility for the work. Any corresponding subcontract shall require the Subcontractor to be bound to the full terms of this Contract to the extent of his work, and it shall allow the Subcontractor the benefit of the same rights and remedies afforded the Contractor by this Contract,. 2. Work Involved. All work will be performed, in a workmanlike fashion according to the plans and specifications identified. 3. Time of Commencement and Substantial Completion. The work shall be convened and, subject to adjustments, substantially completed within the time limits given on the reverse side but Contractor shall not be penalized for Acts of God, strikes, shortages of critical materials and other delays beyond his control. Upon notice by the Contractor of substantial completion of the Project the. owner's representative shall tour the project with the contractor and provide contractor with a "Final Punch List" by which the contractor can fully complete his work. Items not included in this Punch List shall be treated as Warranty Work, more fully discussed below. 4. Warranty Work. Contractor warrants to owner that all materials and equipment incorporated into the project will be new unless otherwise specified and further warrants, all materials and labor for the warranty work, which is not part of a subsidiary warranty from a materialman or subcontractor, will be at no cost to the owner. 5. Initial Payment. The initial payment shall be paid by Owner to Contractor prior to commencement or work and shall be used for acquisition of materials and site setup. Contractor shall partially credit owner for such initial payment in each application for payment in the amount shown, until the initial payment is fully credited. 6. Progress Payments. The Owner shall make the monthly progress payments less the given retention to Contractor for all unpaid work completed though the given day of each month based upon an Application for Payment submitted by Contractor. Such progress payments shall be made within given number of days or the receipt of such Application. If for any reason, any such progress payment is not received in full within such time Contractor shall have the right to cease work immediately sending written notice to Owner and to initiate any applicable legal proceedings to collect the amount due together with interest at 10% per annum. 7. Final Payment. All amounts held in retention together with any other unpaid portion of the contract or change orders shall be paid to the Contractor within the given number of days of Contractor's notification to Owner that the work is complete. 8. Effect of Final Payment. The making or the final payment shall constitute a waiver of all claims by Owner except those arising from unsettled liens, from failure of work, to comply with requirements of Contract documents, or from faulty or defective work appearing after standard completion or identified in the final punch list. In like manner, acceptance of final payment by Contractor constitutes a waiver of all claims not previously made to Owner in writing or identified as unsettled in the application for the final payment. 9. Conditions to Progress and Final Payments. Neither progress nor final payments from Owner to Contractor are conditioned upon receipt by Owner of corresponding draws from Owner's Lender, Owner may condition any progress or final payments to Contractor upon receipt from Contractor or appropriate lien waivers themselves conditioned upon receipt of the monies applied for. 10. Surveys, Legal Descriptions and Easements. Owner shall furnish all surveys and legal descriptions of the project, and Owner shall secure and pay for all necessary approvals, easements and charges required for use of occupancy of the project. 11. Professional Fees. Owner shall pay for all real estate fees, financing charges, accounting fees, legal fees, design fees, and engineering fees involved in the acquisition and development of land underlying the project as well as the construction of the project itself. 12. Liability and Property Insurance. Owner shall purchase and maintain both liability insurance for his own liability, and property insurance for the entire project; this property insurance shall include "all risk" coverage for theft and vandalism as well as the standard casualty coverage for fire and flood. 13. Supervision, Safety and Insurance. Contractor shall be responsible for all supervision and coordination of the work and for all responsible precautions needed to carry out such work in a manner safe for both the project and all person involved therein. Contractor shall secure and maintain all liability and Workmen's Compensation Insurance necessary for the work or himself and his subcontractors. If this Contract is performed as "cost plus" Contract all such supervision and insurance costs will he treated as job costs. 14. Administrative and Job Overhead Items. The following administrative and job overhead items are to be absorbed by the Contractor in a fixed fee contract and to be treated as job costs in a cost-plus contract: Office overhead directly related to the project, construction schedules and project record documents, job storage and protection of job materials, as well as maintenance, replacement and rental or tools and equipment. IS. Construction Permits and Sales Taxes. Contractor shall comply with all laws, ordinances and regulations effecting construction of the project, and shall secure any pay for all necessary building and construction permits, and shall pay all sales taxes arising from the construction of the project. If this Contract is performed as "cost. Plus" contract in lieu of a fixed fee contract all such taxes and fees shall be treated as part of the job costs. 16. Legal Remedies. This Contract shall be governed by the laws of the State of--PA and all applicable case law. All of the remedies available under those laws shall be available to the parties of the Contract. -PA At the option of either party any dispute arising hereunder may be submitted to arbitration. The prevailing party in any dispute arising will be awarded attorney's fees, arbitration and court costs as the court deems fair. 17. Assignment. This Contract may not be assigned by either party without the other party's written consent. 18. Modifications. All modifications to this Contract shall be in writing by change orders, purchase orders or similar documents signed by agents of both Owner and Contractor. 19. Notice of Completion. Should Owner for any reason record a Notice of Completion which operates to shorten the lien period he shall immediately notify Contractor of the Notice, and deliver a copy of that Notice to Contractor. 20. Acceptance. This Contract shall be executed in duplicate; Owner and Contractor shall each retain one of the original duplicates. This Contract is complete and binding when properly executed as indicated above. Dorsey Construction 61 Lenwood Park Shippensburg, PA 17257 ROGER STIRAL P.O. # Terms Due Date Other CONTRACTOR LICENSE'S NUMBER PA033015 MASTER BATHROOM Date 31512011 Estimate # 75 3/5/2011 0.00 0.00 DEMOLITION 0.00 0.00 TOILETS 0.00 0.00 BATHROOM VANITY 0.00 0.00 VANITY LIGNT 0.00 0.00 VANITYSINK- 0.00 0.00 VANITY TOP 0.00 0.00 TILE FLOORING 0.00 0.00 SHOWER BASE 0.00 0.00 TILE FOR SHOWER 0.00 0.00 SHELF 0.00 0.00 LINEN CLOSET 0.00 '0.00 CARPET 0.00 0.00 FIREPLACE 0.00 0100 Subtotal Sales Tax (0.0%) Total Dorsey Construction V ORSE'YCONS7RUCTION33Q HOTMAIC... 717-729-8182 Page 9 Dorsey Construction 61 Lenwood Park Shippensburg, PA 17257 :3`fi?.a tip. i'i T u ??f' .? b,,.,s• ,t• s t Date 3/5/2011 Estimate # 75 Hfi MDR ROGER STIRAL P.O. # Terms LABOR TOTAL 515,000.00419,000.00 S!??? _. ._ ?. Dorsey Construction DORSEYCONSTRUCTION3 3®NOTMAI L.... Due Date 31512011 Other 0.00 0.00 17,500.00 17,500.00 Subtotal $17,500.00 Sales Tax (0.0%) $0.00 Total $17,500.00 717-729-9182 Page 2 Dorsey Construction 61 Lenwood Park Shippensburg, PA 17257 Date 51712011 Estimate # 83 ROGER STIRAL P.O. # Terms CONTRACTOR LICENSE'S NUMBER PA033015 MASTER BATHROOM FIRST DRAW DEMO, SHOWER BASF, PLUMBING, ELECTRICAL $4,500.00 SECOND DRAW PAINT, TILE, TOILETS,VANITY, CLOSET, DRYWALL $ 5,500.00 THIRD DRAW (COMPLETION OF 408) FAUCETS, GROUT TILE, FINISH BATHROOM $7,500.00 Dorsey construction D 0 RSEYCONST R UCTION3 30 HOTMAI L ... Due Date 517120 t 1 Other 0.00 0.00 Subtotal $0.00 Sales Tax (0.0%) $0.00 Total $0.00 717-729-8182 PROPOSAL AND CONTRACT FOR CONSTRUCTION OR REPAIRS (OWNER-CONTRACTOR) Contractor - ?- Owner Address k Address City, State, Zi - /? ??,p City, State, Zip Phone } g Phone License Number Proj ect Number Project Name , Project Address Project Description Lender Address City, State Zip Phone Project (Legal Description ) Other Contract Documents (identify all plans, specifications, addendums, etc.) Work Involved r 212 16 6P . - Commencement of Work Completion of Work [ ] Upon _ days notice from Owner within [ ]within days commencement of work days of acceptance. [ } other other G initial Payment Final Contract Price $ ?- $ _ total with $ credited to owner on each Application for Payment until full credited. _ Final Payment Including any retention to be paid within _ days of Progress Payments Less a % retention to be paid within Application for Work Completed days of Notice of Completion by the day of month and Application for Final Payment Termination of Proposal Date Proposal Prepared Warranty Period on if not accepted before ears from completion. Additional Provisions Instructions: Contractor completes and executes three copies and delivers two to Owner-. Owner accepts proposal by executing and returning one co to contractor before proposal termination date Proposal by ontractor Signature Title ate Signature Title Date Acceptance by Owner(s) DZ , Signature Title (if applicable) Date Signature Title (if applicable) Date STANDARD PROVISIONS OF PROPOSAL AND CONTRACT FOR CONSTRUCTION OR REPAIRS 1. Subcontractors. Contractor at his discretion may delegate any portion of the work by Subcontractor with responsible Subcontractors but such delegation shall not relieve Contractor of full responsibility for the work. Any corresponding subcontract shall require the Subcontractor to be bound to the full terms of this Contract to the extent of his work, and it shall allow the Subcontractor the benefit of the same rights and remedies afforded the Contractor by this Contract. 2. Work Involved. All work will be performed, in a workmanlike fashion according to the plans and specifications identified. 3. Time of Commencement and Substantial Completion. The work shall be convened and, subject to adjustments, substantially completed within the time limits given on the reverse side but Contractor shall not be penalized for Acts of God, strikes, shortages of critical materials and other delays beyond his control. Upon notice by the Contractor of substantial completion of the Project the owner's representative shall tour the project with the contractor and provide contractor with a "Final Punch List" by which the contractor can fully complete his work. Items not included in this Punch List shall be treated as Warranty Work, more fully discussed below. 4. Warranty Work. Contractor warrants to owner that all materials and equipment incorporated into the project will be new unless otherwise specified and further warrants, all materials and labor for the warranty work, which is not part of a subsidiary warranty from a materialman or subcontractor, will be at no cost to the owner. 5. Initial Payment. The initial payment shall be paid by Owner to Contractor prior to commencement or work and shall be used for acquisition of materials and site setup. Contractor shall partially credit owner for such initial payment in each application for payment in the amount shown, until the initial payment is fully credited. 6. Progress Payments. The Owner shall make the monthly progress payments less the given retention to Contractor for all unpaid work completed though the given day of each month based upon an Application for Payment submitted by Contractor. Such progress payments shall be made within given number of days or the receipt of such Application. If for any reason, any such progress payment is not received in full within such time Contractor shall have the right to cease work immediately sending written notice to Owner and to initiate any applicable legal proceedings to collect the amount due together with interest at 10% per annum. 7. Final Payment. All amounts held in retention together with any other unpaid portion of the contract or change orders shall be paid to the Contractor within the given number of days of Contractor's notification to Owner that the work is complete. 8. Effect of Final Payment. The making or the final payment shall constitute a waiver of all claims by Owner except those arising from. unsettled liens, from failure of work, to comply with requirements of Contract documents, or from faulty or defective work appearing after standard completion or identified in the final punch list. In like manner, acceptance of final payment by Contractor constitutes a waiver of all claims not previously made to Owner in writing or identified as unsettled in the application for the final payment. 9. Conditions to Progress and Final Payments. Neither progress nor final payments from Owner to Contractor are conditioned upon receipt by Owner of corresponding draws from Owner's Lender. Owner may condition any progress or final payments to Contractor upon receipt from Contractor or appropriate lien waivers themselves conditioned upon receipt of the monies applied for. 10. Surveys, Legal Descriptions and Easements. Owner shall furnish all surveys and legal descriptions of the project, and Owner shall secure and pay for all necessary approvals, easements and charges required for use of occupancy of the project. 11. Professional Fees. Owner shall pay for all real estate fees, financing charges, accounting fees, legal fees, design fees, and engineering fees involved in the acquisition and development of land underlying the project as well as the construction of the project itself. 12. Liability and Property Insurance. Owner shall purchase and maintain both liability insurance for his own liability, and property insurance for the entire project; this property insurance shall include "all risk" coverage for theft and vandalism as well as the standard casualty coverage for fire and flood. 13. Supervision, Safety and Insurance. Contractor shall be responsible for all supervision and coordination of the work and for all responsible precautions needed to carry out such work in a manner safe for both the project and all person involved therein. Contractor shall secure and maintain all liability and Workmen's Compensation Insurance necessary for the work or himself and his subcontractors. If this Contract is performed as "cost plus" Contract all such supervision and insurance costs will he treated as job costs. 14. Administrative and Job Overhead Items. The following administrative and job overhead items are to be absorbed by the Contractor in a fixed fee contract and to be treated as job costs in a cost-plus contract: Office overhead directly related to the project, construction schedules and project record documents, job storage and protection of job materials, as well as maintenance, replacement and rental or tools and equipment. 15. Construction Permits and Sales Taxes. Contractor shall comply with all laws, ordinances and regulations effecting construction of the project, and shall secure any pay for all necessary building and construction permits, and shall pay all sales taxes arising from the construction of the project. If this Contract is performed as "cost plus" contract in lieu of a fixed fee contract all such taxes and fees shall be treated as part of the job costs. 16 egal Remedies. This Contract shall be governed by the laws of the State of' and all applicable case law. All of the remedies available under those laws shall be available to the parties of the Contract. At the option of either party any dispute arising hereunder may be submitted to arbitration. The prevailing party in any dispute arising will be awarded attorney's fees, arbitration and court costs as the court deems fair. 17. Assignment. This Contract may not be assigned by either party without the other party's written consent. 18. Modifications. All modifications to this Contract shall be in writing by change orders, purchase orders or similar documents signed by agents of both Owner and Contractor. 19. Notice of Completion. Should Owner for any reason record a Notice of Completion which operates to shorten the lien period he shall immediately notify Contractor of the Notice, and deliver a copy of that Notice to Contractor. 20. Acceptance. This Contract shall be executed in duplicate; Owner and Contractor shall each retain one of the original duplicates. This Contract is complete and binding when properly executed as indicated above. Dorsey Construction 61 Lenwood Park Shippensburg, PA 17257 Date 31512011 Estimate # 71 ROGER STIRAL P.O. # Terms CONTRACTOR LICENSE'S NUMBER PA033015 ADDITION 13X 13 Due Date 31512011 Other 0.00 0.00 CONCRETE FOOTERS 0.00 0.00 FOUNDATION BLOCK 0.00 0.00 CONCRETE 0.00 0.00 2X6X 16 LUMBER 0.00 0.00 2X6X104 518 0.00 0.00 O.S.0 SHEETING 0.00 0.00 2X4X 16 LUMBER 0.00 0.00 FREE SPAN TRUSSES 0.00 0.00 ROOF METAL 0.00 0.00 RAKE TRIM 0100 0.00 RIDGE CAP 0.00 0.00 04/05 (GUTCHLAP) SIDING .044 0.00 0.00 Su btotal Sales Tax (0.097 Total Dorsey Construction DORSEYCONST RUCTION3 3@ NOTMAIL.... 717-729-8182 Page 1 R Dorsey Construction 61 Lenwood Park Shippensburg, PA 17257 aim 3? ?`? ? ? f YI( Date 31512011 Estimate # 71 ;.. : ROGER STIRAL P.O. # Terms SOFFIT FASCIA INSULATION 112 X 10 DRYWALL DRYWALL MUD 15/8 DRYWALL SCREWS VALSPAR INTERIOR SATIN PAINT TRIM INSTALL NEW CONSTRUCTION WINDOWS/ REPLACEMENT WINDOWS FLOORING ELECTRICAL EXCAVATION TOTAL Dorsey Cons ruction DORSEYCONSTRUCTI0N33@NO AIL,... 717-729-8182 Page 2 Due Date 31512011 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 21,650.00 21,650.00 Subtotal $21,650.00 Sales Tax (0.0%) $0.00 Total $21,650.00 r . Dorsey Construction 61 Lenwood Park Shippensburg, PA 17257 Date 51712011 Estimate # 79 ROGER STIRAL P.O. # Terms CONTRACTOR LICENSE'S NUMBER PA033015 ADDITION 19X 18 FIRST DRAW EXCAVATION,FOOTERS, BLOCK, CONCRETE, AND FRAMING $ 7,500.00 SECOND DRAW SHINGLES, SIDING, INSULATION, ELECTRIC, DRYWALL, WINDOWS $7,500.00 THIRD DRAW (COMPLETION OF JOB) Dorsey Construction DORSEYCONSTRUCY10N33@ HOTMAIL.... Due Date 51712011 Other 0.00 Subtotal Sales Tax (0.0%) Total 717-729-5182 Page 1 0.00 R Dorsey Construction: f -J a?'v 3' - R"• `3 ASS kr 61 Lenwood Park Shippensburg, PA 17257 Date 51712011 Estimate # 79 n rfr.. ; Y WIN ROGER STIRAL P.O. # Dorsey Construction DORSBYCONSTRUCT10N33@NOTM,41L,... 717-729-8182 Page 2 PROPOSAL AND CONTRACT FOR CONSTRUCTION OR REPAIRS (OWNER-CONTRACTOR) Contractor J „15.7 T, Owner Address /? e Address City, State, Zip ) _721 A ?City, State, Zip Phone - y Phone License Numbe Project Number Project Name A? Project Address Project Description Lender 1 &-- k Address - C ?4 City, State Zip Phone Project (Legal Description ) Other Contract Documents (identify all plans, specifications, addendums, etc.) Work Involved Commencement of Work Completion of Work [ ] Upon days notice from Owner within [ ] within days commencement of work days of acceptance. [) other Other Initial Payment Final Contract Price $? $ total with $ credited to owner on each Application for Pa Tent until full credited. Final Payment Including any retention to be paid within days of Progress Payments Application for Work Completed days of Notice of Less a % retention to be paid within Completion by the day of month and Application for Final Payment Termination of Proposal Date Proposal Prepared Warranty Period on if not accepted before ears from completion. Additional Provisions Instructions: Contractor completes and executes three copies and delivers two to Owner. Owner accepts proposal by executing and returning one co to contractor before proposal termination date Proposal by Contractor Signature Title Date Signature Title Date Acceptance by Owner(s) Signature Title (if applicable) Date Signature Title (if applicable) Date STANDARD PROVISIONS OF PROPOSAL AND CONTRACT FOR CONSTRUCTION OR REPAIRS 1. Subcontractors. Contractor at his discretion may delegate any portion of the work by Subcontractor with responsible Subcontractors but such delegation shall not relieve Contractor of full responsibility for the work. Any corresponding subcontract shall require the Subcontractor to be bound to the full terms of this Contract to the extent of his work, and it shall allow the Subcontractor the benefit of the same rights and remedies afforded the Contractor by this Contract. 2. Work Involved. All work will be performed, in a workmanlike fashion according to the plans and specifications identified. 3. Time of Commencement and Substantial Completion. The work shall be convened and, subject to adjustments, substantially completed within the time limits given on the reverse side but Contractor shall not be penalized for Acts of God, strikes, shortages of critical materials and other delays beyond his control. Upon notice by the Contractor of substantial completion of the Project the owner's representative shall tour the project with the contractor and provide contractor with a "Final Punch List" by which the contractor can fully complete his work. Items not included in this Punch List shall be treated as Warranty Work, more fully discussed below. 4. Warranty Work. Contractor warrants to owner that all materials and equipment incorporated into the project will be new unless otherwise specified and further warrants, all materials and labor for the warranty work, which is not part of a subsidiary warranty from a materialman or subcontractor, will be at no cost to the owner. 5. Initial Payment. The initial payment shall be paid by Owner to Contractor prior to commencement or work and shall be used for acquisition of materials and site setup. Contractor shall partially credit owner for such initial payment in each application for payment in the amount shown, until the initial payment is fully credited. 6. Progress Payments. The Owner shall make the monthly progress payments less the given retention to Contractor for all unpaid work completed though the given day of each month based upon an Application for Payment submitted by Contractor. Such progress payments shall be made within given number of days or the receipt of such Application. If for any reason, any such progress payment is not received in full within such time Contractor shall have the right to cease work immediately sending written notice to Owner and to initiate any applicable legal proceedings to collect the amount due together with interest at 10% per annum. 7. Final Payment. All amounts held in retention together with any other unpaid portion of the contract or change orders shall be paid to the Contractor within the given number of days of Contractor's notification to Owner that the work is complete. 8. Effect of Final Payment. The making or the final payment shall constitute a waiver of all claims by Owner except those arising from unsettled liens, from failure of work, to comply with requirements of Contract documents, or from faulty or defective work appearing after standard completion'or identified in the final punch list. In like manner, acceptance of final payment by Contractor constitutes a waiver of all claims not previously made to Owner in writing or identified as unsettled i4 the application for the final payment. 9. Conditions to Progress and Final Payments. Neither progress nor final payments from Owner to Contractor are conditioned upon receipt by Owner of corresponding draws from Owner's Lender. Owner may condition any progress or final payments to Contractor upon receipt from Contractor or appropriate lien waivers themselves conditioned upon receipt of the monies applied for. 10. Surveys, Legal Descriptions and Easements. Owner shall furnish all surveys and legal descriptions of the project, and Owner shall secure and pay for all necessary approvals, easements and charges required for use of occupancy of the project. 11. Professional Fees. Owner shall pay for all real estate fees, financing charges, accounting fees, legal fees, design fees, and engineering fees involved in the acquisition and development of land underlying the project as well as the construction of the project itself. 12. Liability and Property Insurance. Owner shall purchase and maintain both liability insurance for his own liability, and property insurance for the entire project; this property insurance shall include "all risk" coverage for theft and vandalism as well as the standard casualty coverage for fire and flood. 13. Supervision, Safety and Insurance. Contractor shall be responsible for all supervision and coordination of the work and for all responsible precautions needed to carry out such work in a manner safe for both the project and all person involved therein. Contractor shall secure and maintain all liability and Workmen's Compensation Insurance necessary for the work or himself and his subcontractors. If this Contract is performed as "cost plus" Contract all such supervision. and insurance costs will he treated as job costs. 14. Administrative and Job Overhead Items. The following administrative and job overhead items are to be absorbed by the Contractor in a fixed fee contract and to be treated as job costs in a cost-plus contract; Office overhead directly related to the project, construction schedules and project record documents, job storage and protection of job materials, as well as maintenance, replacement and rental or tools and equipment. 15. Construction Permits and Sales Taxes. Contractor shall comply with all laws, ordinances and regulations effecting construction of the project, and shall secure any pay for all necessary building and construction permits, and shall pay all sales taxes arising from the construction of the project. If this Contract is performed as "cost plus" contract in lieu of a fixed fee contract all such taxes and fees shall be treated as part of the job costs. 16. Legal Remedies. This Contract shall be governed by the laws of the. State ofd_ and all applicable 11 Pg case law. All of the remedies available under those laws shall be available to the parties of the Contract. At the option of either party any dispute arising hereunder may be submitted to arbitration. The prevailing party in any dispute arising will be awarded attorney's fees, arbitration and court costs as the court deems fair. 17. Assignment. This Contract may not be assigned by either party without the other party's written consent. 18. Modifications. All modifications to this Contract shall be in writing by change orders, purchase orders or similar documents signed by agents of both Owner and Contractor. 19. Notice of Completion. Should Owner for any reason record a Notice of Completion which operates to shorten the lien period he shall immediately notify Contractor of the Notice, and deliver a copy of that Notice to Contractor. 20. Acceptance. This Contract shall be executed in duplicate; Owner and Contractor shall each retain one of the original duplicates. This Contract is complete and binding when properly executed as indicated above. Dorsey Construction 61 Lenwood Park Shippensburg, PA 17257 i' '. 0 1 [}}QQyy ? 1f , a . .S} ROGER STIRAL P.O. # Terms CONTRACTOR LICENSE'S NUMBER PA033015 PORCH 25X16 0.00 0.00 CONCRETE FOOTERS 0.00 0.00 FOUNDATION BLOCK 0.00 0.00 CONCRETE 0.00 0.00 SUPPORT POST 3" METAL POST 0.00 0.00 2X f OX 16 0.00 0.00 LUMBER 0.00 0.00 2X4Xf6 LUMBER 0.00 0.00 ROOF METAL 0.00 0.00 SIDEWALK 0.00 0.00 STAIN FOR CONCRETE 0100 0100 TOTAL Dorsey Construction DORSEYCONSTRUCTION33@ NOTMAIL.... 717-729-8182 Date 31512011 Estimate # 72 Due Date 31512011 Other 14,000.00 14,000.00 Subtotal Sales Tax (0.0%) Total Page 1 Dorsey Construction 61 Lenwood Park Shippensburg, PA 17257 { Date 31512011 Estimate # 72 i'7.; .? i K t a?}?r+r• 7t as.-a-?+n.? lad, ;']? F `4 k c ?p• dr S f d r f2F.?a.a?s4:?T?t..R?4 ;Msx,s:' ROGER STIRAL P.O. # Terms ARMS $1,500.00 19 Due Date 31512011 Other r C. Dorsey Construction VORSFYCONSTRUCTION33®l/OT A/L... 717-729-8182 Subtotal Sales Tax (0.0%) Total $14,000.00 $0.00 $14,000.00 Page 2 . r Dorsey Construction 61 Lenwood Park Shippensburg, PA 17257 ? 9 ti l Date 51712011 Estimate # 80 ROGER STIRAL P.O. # Terms CONTRACTOR LICENSE'S NUMBER PA033015 PORCH 16 X 25 FIRST DRAW EXCAVATION, F007ERS, BLOCK, CONCRETE $ 4,000.00 SECOND DRAW FRAMING, METAL ROOF, SOFFIT, FASCIA, SPOUTING, POST $ 4,000.00 TNIRD DRAW (COMPLETION OFJOB) ELECTRIC, CEILING FANS, FIRE PLACE $6,000.00 Due Date 51712011 Other 0.00 Subtotal Sales Tax (0.0%) Total Dorsey Construction DORSEYCONSTRUCTION33Q90TMAIL.... 717-729-9192 Page 1 0.00 .4 Dorsey Construction 61 Lenwood Park Shippensburg„ PA 17257 x Date 51712011 Estimate # 80 221F MA I RKEE ROGER STIRAL P.O. # Terms A RCHES $1,500.00 Due Date 51712011 Other Subtotal $0.00 Sales Tax (0.0%) $0.00 Total $0.00 Dorsey Construction DORSBYCONSTR UCTION330 NOTMAIL.... 717-729-8182 Page 2 PROPOSAL AND CONTRACT FOR CONSTRUCTION OR REPAIRS (OWNER-CONTRACTOR) Contractor Owner Address Address City, State, Zip City., State, Zip Phone Phone License Number Project Number Project Name Project Address Project Description Lender t Address 64CE}, Y-7- I Cwt City, State Zip Phone Project (Legal Description ) Other Contract Documents (identify all plans, specifications, addendums, etc.) Work Involved Commencement of Work [ ] Upon _ days notice from Owner within days of acceptance. [ Other Completion of Work [ ]within days commencement of work [ }other Final Contract Price $ ?- Initial Payment $ total with $ credited to owner on each A lication for Payment until full credited. Progress Payments Less a % retention to be paid within Final Payment Including any retention to be paid within days of Application for Work Completed days ofNotice of Completion by the day of month and Application for Final Payment Termination of Proposal Date Proposal Prepared Warranty Period on if not accepted before ears from completion. Additional Provisions Instructions: Contractor completes and executes three copies and delivers two to Owner. Owner accepts proposal by executing and returning one co to contractor before proposal termination date Proposal by Contractor Signature Title ate s ? Signature Title Date Acceptance by Owner(s) Signature Title (if applicable) Date Signature Title if applicable) Date STANDARD PROVISIONS OF PROPOSAL AND CONTRACT FOR CONSTRUCTION OR REPAIRS 1. Subcontractors. Contractor at his discretion may delegate any portion of the work by Subcontractor with responsible Subcontractors but such delegation shall not relieve Contractor of full responsibility for the work. Any corresponding subcontract shall require the Subcontractor to be bound to the full terms of this Contract to the extent of his work, and it shall allow the Subcontractor the benefit of the same rights and remedies afforded the Contractor by this Contract. 2. Work Involved. All work will be performed, in, a workmanlike fashion according to the plans and specifications identified. 3. Time of Commencement and Substantial Completion. The work shall be convened and, subject to adjustments, substantially completed within the time limits given on the reverse side but Contractor shall not be penalized for Acts of God, strikes, shortages of critical materials and other delays beyond his control. Upon notice by the Contractor of substantial completion of the Project the owner's representative shall tour the project with the contractor and provide contractor Nvith a "Final Punch List" by which the contractor can fully complete his work. Items not included in this Punch List shall be treated as Warranty Work, more fully discussed below. 4. Warranty Work. Contractor warrants to owner that all materials and equipment incorporated into the project will be new unless otherwise specified and further warrants, all materials and labor for the warranty work, which is not part of a subsidiary warranty from a materialman or subcontractor, will be at no cost to the owner. S. Initial Payment. The initial payment shall be paid by Owner to Contractor prior to commencement or work and shall be used for acquisition of materials and site setup. Contractor shall partially credit owner for such initial payment in each application for payment in the amount shown, until the initial payment is fully credited. 6. Progress Payments. The Owner shall make the monthly progress payments less the given retention to Contractor for all unpaid work completed though the given day of each month based upon an Application for Payment submitted by Contractor. Such progress payments shall be made within given number of days or the receipt of such Application. If for any reason, any such progress payment is not received in full within such time Contractor shall have the right to cease work immediately sending written notice to Owner and to initiate any applicable legal proceedings to collect the amount due together with interest at 10% per annum. 7. Final Payment. All amounts held in retention together with any other unpaid portion of the contract or change orders shall be paid to the Contractor within the given number of days of Contractor's notification to Owner that the work is complete. 8. Effect of Final Payment. The making or the final payment shall constitute a waiver of all claims by Owner except those arising from unsettled liens, from failure of work, to comply with requirements of Contract documents, or from faulty or defective work appearing after standard completion or identified in the final-punch list. In like wanner, acceptance of final payment by Contractor constitutes a waiver of all claims not previously made to Owner in writing or identified as unsettled in the application for the final payment. 9. Conditions to Progress and Final Payments. Neither progress nor final payments from Owner to Contractor are conditioned upon receipt by Owner of corresponding draws from Owner`s Lender. Owner may condition any progress or final payments to Contractor upon receipt from Contractor or appropriate lien waivers themselves conditioned upon receipt of the monies applied for. 10. Surveys, Legal Descriptions and Easements. Owner shall furnish all surveys and legal descriptions of the project, and Owner shall secure and pay for all necessary approvals, easements and charges required for use of occupancy of the project. 11. Professional Fees. Owner shall pay for all real estate fees, financing charges, accounting fees, legal fees, design fees, and engineering fees involved in the acquisition and development of land underlying the project as well as the construction of the project itself. 12. Liability and Property Insurance. Owner shall purchase and maintain both liability insurance for his own liability, and property insurance for the entire project; this property insurance shall include "all risk" coverage for theft and vandalism as well as the standard casualty coverage for fire and flood. 13. Supervision, Safety and Insurance. Contractor shall be responsible for all supervision and coordination of the work and for all responsible precautions needed to carry out such work in a manner safe for both the project and all person involved therein. Contractor shall secure and maintain all liability and Workmen's Compensation Insurance necessary for the work or himself and his subcontractors. If this Contract is performed as "cost plus" Contract all such supervision and insurance costs will he treated as job costs. 14. Administrative and Job Overhead Items. The following administrative and job overhead items are to be absorbed by the Contractor in a fixed fee contract and to be treated as job costs in a cost-plus contract: Office overhead directly related to the project, construction schedules and project record documents, job storage and protection of job materials, as well as maintenance, replacement and rental or tools and equipment. 15. Construction Permits and Sales Taxes. Contractor shall comply with all laws, ordinances and regulations effecting construction of the project, and shall secure any pay for all necessary building and construction permits, and shall pay all sales taxes arising from the construction of the project. If this Contract is performed as "cost plus" contract in lieu of a fixed fee contract all such taxes and fees shall be treated as part of the job costs. 16. Legal Remedies. This Contract shall be governed by the laws of the State of -T ? and all applicable _ case law. All of the remedies available under those laws shall be available to the parties of the Contract. At the option of either party any dispute arising hereunder may be submitted to arbitration. The prevailing party in any dispute arising will be awarded attorney's fees, arbitration and court costs as the court deems fair. 17. Assignment. This Contract may not be assigned by either parry without the other party's written consent. 18. Modifications. All modifications to this Contract shall be in writing by change orders, purchase orders or similar documents signed by agents of both Owner and Contractor. 19. Notice of Completion. Should Owner for any reason record a Notice of Completion which operates to shorten the lien period he shall immediately notify Contractor of the Notice, and deliver a copy of that Notice to Contractor. 20. Acceptance. This Contract shall be executed in duplicate; Owner and Contractor shall each retain one of the original duplicates. This Contract is complete and binding when properly executed as indicated above. Dorsey Construction 61 Lenwood Park Shippensburg, PA 17257 Date 31511011 Estimate # 73 ROGER STIRAL P.O. # Terms CONTRACTOR LICENSE'S NUMBER P4033015 GYM ADDITION 18X24 EXCAVATION CONCRET€ FOOTERS FOUNDATION BLOCK CONCRETE 2X6X104 5/8 0. S. B SHEETING 2XIOX16 2X6X 16 LUMBER INSTALL NEW 15 WEIGHT FELT PAPER INSTALL 30 YR ARCH17ECTURAL SHINGLE RIDGE CAP NAILS 112 X 10 DRYWALL Due Date 31512011 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Su btotal Sales Tax (0.0%) Total Dorsey Construction DORSEYCONSTRUCTION 3 3®HOTMAI L... 717-729-0102 Page 9 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Dorsey Construction 61 Lenwood Park Shippensburg, PA 17257 Date 31512011 Estimate # 73 ROGER STIRAL P.O. # Terms DRYWALL MUD LVL'S REAM It 7/8 COIL D4/05 (DUTCHLAP) SIDING.044 SILL SEAL FOR BOTTOM PLATE F CHANNEL (SOFFIT RECEIVER) J CHANNEL SIDING RECEIVER BRICK GARAGE DOORS' THUNDER STUDS (CONCRETE ANCHOR BOLTS) GATE KITS ARCH TOP WINDOWS INSULATION LABOR Dorsey Construction DORSEYCONSTRUCTION330 HOTMAIL.... 717-729-0192 Due Date Other Page 2 3 2 3/5/2011 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0100 0.00 0.00 0.00 0.00 0.00 0.00 Subtotal Sales Tax (0.0%) Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Dorsey Construction 61 Lenwood Park Shippensburg, PA 17257 Date 31512011 Estimate # 73 R. I -c Al-i'mi"MIF pr yv.? ROGER STIRAL P.O. # Terms TOTAL Due Date 31512011 Other Dorsey Constru ton VORSBYCONSTRIICTION33MMOTMAIL,... 717-729-8182 21;000.00 21,000.00 Subtotal $21,000.00 Sales Tax (0.0%) $0.00 Total $21,000.00 Page 3 Dorsey Construction 61 Lenwood Park Shippensburg„ PA 17257 ? •t..?: ? 3 Y? 13 .aS?T .f bi:.C Date 51712011 Estimate # 81 11 TI- 711- M71 01, ROGER STIRAL P.O. # Terms CONTRACTOR LICENSE'S NUMBER PA033015 GARAGE ADDITION 12 X 24 FIRST DRAW EXCAVATION, FOOTFRS, BLOCK CONCRETE, FRAMING 7,000.00 SECOND DRAW SHINGLES, SIDING, SOFFIT, FASCIA, INSULATION S 7,000.00 Due Date 51712011 Other 0.00 Subtotal Safes Tax (0.0%) Total Dorsey Construction DO RSEYCONSTRUCTION3 3®HOTMAI L... 717-729-8192 Page 1 0.00 Dorsey Construction 61 Lenwood Park Shippensburg„ PA 17257 Date 51712011 Estimate # 81 x .., Ids Dx ROGER STIRAL P.O. # Terms Due Date 51712011 Other THIRD DRAW (COMPLETION OF JO8) DRYWALL,. FINISH DRYWALL, PAINT, GARAGE DOORS 5 7,000.00 Dorsey Construction DORSEYCONSTRUCTION33@ HOTMAIL... Subtotal $0.00 Sales Tax (0.0%) $0.00 Total $0.00 717-729-8192 Page 2 AVPLICATION FOR RESIDENTIAL ZONING AND/OR BUILDING PERIYIIT MONROE TOWNSHIP Office Phone: (717) 697-4613 1220 Boiling Springs Road Fax: (.717) 258-931 1 Mechancisburg, PA 17035 E-mail: Monroet,?vp@rnycorncast.com 4 W% V.monroetwp.net Applikatifmi is herch% made to uic T-jxii,hip fora ZoninLardior Building tretnnit in muffrrtnnnce %%ith the rcquirenient? cat the Mn,irov Tfia•nship Ditili_ E)t'•:tin:inre.:AaetLct September 17. 1991 . last :nnendcd Mi%ember 9. 2(ft and the Uniform Construction Codc (Pa Act 4-/1990( wid am amendments thereto ti:r the fotlowino: :i,t'.i_ OP TNF Ft-)I.in INC ITENIS NIUST BE CONIPI,ETED: SITE ADDRESS OR LOT itiL"?•IBER: i TT %r PROPERTY OWNER OF RECORD I`_s.FORNIATI014: Name:T vAx- l t;ci6t Address: Owner's Fax No.: . Phone Minber: ?1-y?.? Owner',; F.-Mail: APPLICANT/CONTRACTOR INFORMATION (Complete only if the applicant is not the property owner): Name: ,' Phone Number: `22 2- 7247,<-}?R.;;? Address: Fax No,:_ TL._ ..._.t-....: .,._....1 ......-1 :.......• L. n....C.. ......I;ter !'.... .. n_.«...it fn nnnifYlir.1• 7"?{?. ?/?A.?t ?r4.+y t?f7'""I 1.., a.L.........t'Y? ............. „t,t....._..... .. r•_......._ -....... ? Ne?N Residential Dwelling A. Residential Addition ? Swimming Pool ? Fence ? Sian ? Accessory Structt.tre (Shed, Garage, Etc). ? Electrical ? Gradin /Paving ?AgricultUral Structure Description of Proposed'Nork: Dimensions of Itnpro%ernent: Length ft. Width ft. Height ?ft. Area s.f. Estimated coat of proposed work: (,nature of ApplicaP67 (Print Name Here) Present Use of Proper(5 : r ??, rev ?, ? r-_•,_-.. Signature of Property Owner'" (Print Nance Here) *THE PROPERTY OWNER MUST SIGN ALL APPLICATIONS '°kiF THE PROPERTY OWNER :AND APPLICANT ARE THE SAME. ONLY SIGN AS THE OWNER. ee, „.'J-.1':..'^ ........... ..-Paid , ?.i ,?.........L?,_-•-.•.---. FOR T0WNSHIP USE ONLY ..................... Fee:........................ Tax Parcel (umber: 22- ZOilli?a Dkoict: Sewage Permit No. Date lssued: SEO/AuthoritN : Date Received: ? Permit Number: ; ._ .2 Eciiin7 Starir'Qs Road, :,,Aechcnicsc-urg•. RA 1170,;5-979,` } "2 ^ rCo.C:i717? si ?.>' \i r. [i4y• o r' :c.j. Workers' Compensation Insurance Exennption Applicant: ..... Permit No The applicattu is claiming e.serrtption from providing workers compensation insurance. The iinclersigned swears o; affit•m?; that heMie is, not required to provide workers' compensation insurance under the provisions or PA k4'orkers' Compensation Law for tine of the following reasons, ats irndicatecl: ()wner Self-Perltn'tnirtg Work. The-property owner is performing the work on a property to structure for which tie/she is the property owner of record. . with No Etnplotiees :.ontractor prohibited by law froin employing any individual:; to perform work pursuant to this application urtiess contractor provides proof- of insurance to the i t?4t tl.`ilitrJ Religious exemption under Workers' C ompensation Law- Where it contractor is required to provide workers' corlpensation insurance tinder the provisions of the PA Workers' Corrpensation, Law, ac copy" of a current Cettific•ate of Insurance shall be provided ;NOTARY Sworn to and subscribed before me til.s Day of U f (S i 2n attire x Pri?ivatsact?ra??. :t `? ? MW I, Notarial Seal Karen M. L8 x atary Public Monroe Tw, 5 nd County My Commission Expires March 4, 2014 Member. Pennsylvania Assn 4on of Nikades Signatture of Applicant Print Naunf: Her-, Address -Z a2?n Citr State Zip Dorsey Construction 61 Lenwood Park Shippensburg, PA 17257 01 .4 f ROGER STI VAL P.O. # Terms CONTRACTOR LICENSE`S NUMBER PA033015 ROOF DUMPSTERS FOR TRASH REMOVE OLD SIDING INSTALL NEW DRIPEDGE INSTALL ICE AND WEATHER SHIELD IN VALLEYS AND 60770M RUN OF FELT PAPER INSTALL NEW 15 WEIGHT FELT PAPER INSTALL 30 YR ARCHITECTURAL SHINGLE NAILS INSTALL RIDGE VENT SO THE HOUSE IS PROPERLY VENTED RIDGE CAP WEATHER ROOF CEMENT LABOR i5 X 1= 'x rr, r r'?.. r Date 811712011 Estimate # 93 Due Date 811712011 Other 0.00 0.00' 0.00: 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Subtotal Sales Tax (0.0%) Total Dorsey Constructlon DORSEYCONSTRUCTION33@HOTMAIL... 717-729-8182 Page 1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 v tDorsey Construction r=` 61 Lenwood Park r N e ` =F jX '„ k r Shippensburg, PA 17257 Date g/1712011 Estimate # 93 HIM- ROGER STIVAL P.O. # Terms Due Date 811712011 Other TOTAL 12,500.00 12,500.00 Subtotal S1 ?,800.00 Sales Tax (0.0%) $0.00 Total $12,500.00 Dorsey Construction VORSBYCOMSTRUCTIOMMMOTMAIL.... 717-729-8182 Page 2 ` I f .: ' . , Accord Restoration _, rw.E.v uan.rr. . Accord Restoration 621-A Lowther Road Lewisberry, PA 17339 Client: Judy Beitzei Property: 1000 Highfield Court Mechanicsburg, PA 17055 Operator Info: Operator: CRAIG Estimator: Craig Morrison Business: 621-A Lowther Road Lewisberry, PA 17339 Type of Estimate: Water Damage Date Entered: 9/17/2011 Price List: PAHA7X_SEPI 1 Restoration/Service/Remodel Estimate: BEITZEL -ES Emergency Service Estimate CLAIM # 38-Q056-114 Date Assigned: 9/712011 Cellular: (717) 385-6402 Business: (717) 938-1441 x 103 1 Accord Restoration Accord Restoration 621-A Lowther Road Lewisberry, PA 17339 BEITZEL-ES Main Level Foyer/Entry 786.34 SF Wails 935.09 SF Walls & Ceiling 16.53 SY Flooring 48.83 LF Ceil. Perimeter Height: 18' 148.75 SF Ceiling 148.75 SF Floor 34.93 LF Floor Perimeter Missing Wall: 1- 3' 10 7/16" X 6' 8" Opens into Exterior Goes to Floor Missing Wall: 1- X 8" X 6' 8" Opens into FRONT RIGHT Goes to Floor Missing Wall: 1 - 3' 2" X 6' 8" Opens Into Exterior Goes to Floor Missing Wall: 1- 3' 2 3/8" X 6' 8" Opens into Exterior Goes to Floor DESCRIPTION QNTY REMOVE REPLACE TOTAL 17. Tear out wet drywall, cleanup, bag for 364.75 SF 0.63 0.00 229.79 disposal 18. Tear out and bag wet insulation 75.00 SF 0.48 0.00 36.00 19. Apply anti-microbial agent 513.50 SF 0.00 0.17 87.30 20. Mask or cover per square foot 148.75 SF 0.33 0.00 49.09 Totals: Foyer/Entry 402.18 Front Right Missing Wall: Missing Wall: DESCRIPTION 334.67 SF Walls 470.49 SF Walls & Ceiling 15.09 SY Flooring 46.83 LF Cei€. Perimeter 1- 31811 X 6' 8" Opens into FOYER 1- 21411 X 6' 8" Opens into Exterior QNTY REMOVE Height: 8' 135.82 SF Ceiling 135.82 SF Floor 40.83 LF Floor Perimeter Goes to Floor Goes to Floor REPLACE TOTAL 21. Tear out wet drywall, cleanup, bag for 32.00 SF 0.63 0.00 20.16 disposal Totals: Front Right 20.16 BEITZa,ES 9/23/2011 Page:2 Accord Restoration Accord Restoration 621-A Lowther Road Lewisberry, PA 17339 Kitchen Height: 8' 295.14 SF Walls 467.39 SF Walls & Ceiling 19.14 SY Flooring 39.25 LF Ceil. Perimeter Missing Wall: 1- 13'3" X 8' Opens Into LIVING Missing Wall: 1 - 2' 915116" X 6' 8" Opens into Exterior DESCRIPTION QNTY REMOVE 172.25 SF Ceiling 172.25 SF Floor 36.42 LF Floor Perimeter Goes to Floor/Ceiling Goes to Floor REPLACE TOTAL 22. Apply anti-microbial agent 64.00 SF 0.00 0.17 10.88 23. Tear out wet drywall, cleanup, bag for 64.00 SF 0.63 0.00 40.32 disposal 24. Tear out and bag wet insulation 64.00 SF 0.48 0.00 30.72 Totals: Kitchen 81'92 *?!ra?''• ":' Living Room Missing Wall: 1 - 13' 3" X 18' DESCRIPTION 1,397.00 SF Walls 1,774.63 SF Walls & Ceiling 41.96 SY Flooring 70.25 LF Cell. Perimeter Opens into KITCHEN QNTY REMOVE Height: 18' 377.63 SF Ceiling 377.63 SF Floor 70.25 LF Floor Perimeter Goes to Floor/Ceiling REPLACE TOTAL 25. Tear out wet drywall, cleanup, bag for 115.35 SF 0.63 0.00 72.67 disposal 26. Tear out and bag wet insulation 115.35 SF 0.48 0.00 55.37 27. Apply anti-microbial agent 115.35 SF 0.00 0.17 19.61 28. Remove Ceiling fan & light 2.00 EA 13.95 0.00 27.90 29. Content Manipulation charge - per hour 2.00 HR 0.00 27.66 55.32 30. Mask or cover per square foot 377.63 SF 0.33 0.00 124.62 Totals: Living Room 355.49 BEITZEL-ES 9/23/2011 Page:3 r tiC ?_ U. Accord Restoration _. 'li:6S TOR Tf 07L Accord Restoration 621-A Lowther Road Lewisberry, PA 17339 Rear Left Height: 8' 544.00 SF Walls 832.66 SF Walls & Ceiling 32.07 SY Flooring 68.00 LF Ceil. Perimeter 288.66 SF Ceiling 288.66 SF Floor 68.00 LF Floor Perimeter DESCRIPTION QNTY REMOVE REPLACE TOTAL 31. Apply anti-microbial agent 695.50 SF 0.00 0.17 118.24 Totals: Rear Left 118.24 DESCRIPTION 628.00 SF Walls 1,008.97 SF Walls & Ceiling 42.33 SY Flooring 78.50 LF Ceil. Perimeter QNTY Height: 8' 380.97 SF Ceiling 380.97 SF Floor 78.50 LF Floor Perimeter REMOVE REPLACE TOTAL 32. Apply anti-microbial agent 703.33 SF 0.00 0.17 119.57 Totals: Rear Right 119.57 Garage _ - ar ter _?.?, DESCRIPTION 33. Tear out wet drywall, cleanup, bag for disposal 34. Tear out and bag wet insulation 35. Apply anti-microbial agent BEITZEL-ES Rear Right Height: 9' 957.00 SF Walls 682.50 SF Ceiling 1,639.50 SF Walls & Ceiling 682.50 SF Floor 75.83 SY Flooring 106.33 LF Floor Perimeter 106.33 LF Ceil. Perimeter QNTY REMOVE REPLACE TOTAL 626.33 SF 0.63 0.00 394.59 626.33 SF 0.48 0.00 300.64 626.33 SF 0.00 0.17 106.48 9/2312011 Page:4 ! r Accord Restoration Accord Restoration 621-A Lowther Road Lewisberry, PA 17339 DESCRIPTION CONTINUED - Garage QNTY REMOVE REPLACE TOTAL 36. Remove Cabinetry - upper (wall) units 10.00 LF 5.55 0.00 55.50 Totals: Garage 857.21 Total: Main Level 1,954.77 Basement DESCRIPTION Basement 1,275.00 SF Walls 2,414.16 SF Walls & Ceiling 126.57 SY Flooring 141.67 LF Ceil. Perimeter QNTY Height: 9' 1,139.16 SF Ceiling 1,139.16 SF Floor 141.67 LF Floor Perimeter REMOVE REPLACE TOTAL 48. Apply anti-microbial agent 3,553.33 SF 0.00 0.17 604.07 Totals: Basement 604.07 Total: Basement 604.07 2nd Floor Left Bdrm Height: 8' 406.67 SF Walls 161.29 SF Ceiling 567.96 SF Walls & Ceiling 161.29 SF Floor 17.92 SY Flooring - 50.83 LF Floor Perimeter 50.83 LF Ceil. Perimeter DESCRIPTION QNTY REMOVE REPLACE TOTAL 49. Content Manipulation charge - per hour 2.00 HR 0.00 27.66 55.32 50. Mask or cover per square foot 161.29 SF 0.33 0.00 53.23 Totals: Left Bdrm BEITZEL-F-S 9/2312011 108.55 Page: 5 Accord Restoration -.•nga r a wwr?.nwCloset2 128.08 SF Walls 140.75 SF Walls & Ceiling 1.41 SY Flooring 16.01 LF Ceil. Perimeter Height: 8' 12.67 SF Ceiling 12.67 SF Floor 16.01 LF Floor Perimeter i? - DESCRIPTION QNTY REMOVE REPLACE _ TOTAL 51. Tear out wet drywall, cleanup, bag for 2.00 SF 0.63 0.00 1.26 disposal 52. Tear out and bag wet insulation 2.00 SF 0.48 0.00 0.96 53. Apply anti-microbial agent 2.00 SF 0.00 0.17 0.34 Totals: Closet2 2.56 Hallway Height: 8' 348.67 SF Walls 191.18 SF Ceiling - ..r 539.85 SF Walls & Ceilin 191.18 SF Floor 21.24 SY Flooring 43.58 LF Floor Perimeter 43.58 LF Coil. Perimeter Missing Wall: 1- 19'.2 15!16" X 8' Opens into Exterior Goes to Floor/Ceiling Missing Wall: 1- Y5 5116" X 8' Opens into Exterior Goes to Floor/Ceiling Missing Wall: 1- 811115/161, X 8' Opens into Exterior Goes to Floor/Ceiling Missing Wall: 1 - 42" X 8' Opens into Exterior Goes to Floor/Ceiling DESCRIPTION QNTY REMOVE REPLACE TOTAL 54. Tear out wet drywall, cleanup, bag for 96.00 SF 0.63 0.00 60.48 disposal 55. Tear out and bag wet insulation 96.00 SF 0.48 0.00 46.08 56. Apply anti-microbial agent 96.00 SF 0.00 0.17 16.32 57. Floor protection - self-adhesive plastic 191.18 SF 0.40 0.00 76.47 film Totals: Hallway 199.35 Accord Restoration 621-A Lowther Road Lewisberry, PA 17339 BEITZEL-ES 9/23/2011 Page:6 .kccord Restoration Accord Restoration 621-A Lowther Road Lewisberry, PA 17339 V _ _-.4t't T Mstr Bdrm 551.22 SF Walls 906.26 SF Walls & Ceiling 28.10 SY Flooring 68.99 LF Ceil. Perimeter Subroom 1: CLOSET1 109.68 SF Walls 118.96 SF Walls & Ceiling 1.03 SY Flooring 13.71 LF Ceil. Perimeter Subroom 2: ROOM3 Height: d' Height: 8' 113.33 SF Walls 123.75 SF Walls & Ceiling 1.16 SY Flooring 14.17 LF Ceil. Perimeter lj L Subroom 3: OFFSET Height: 8' 92.52 SF Walls 126.63 SF Walls & Ceiling 3.79 SY Flooring 17.73 LF Ceil. Perimeter 11 WMWWjj- Missing Wall: -T - 1- 7 6'4 314" X 8' Opens into MSTRBATH Missing Wall: 1 - 6'4 314" X 8' Opens into MST" BDRM DESCRIPTION 73. Content Manipulation charge - per hour 74. Lift carpet-for drying 75. Tear out wet carpet pad and bag for disposal 76. Tear out wet drywall, cleanup, bag for disposal 77. Tear out and bag wet insulation BEITZEL-ES QNTY REMOVE 4.00 HR 0.00 33.00 SF 0.00 33.00 SF 0.34 493.83 SF 0.63 325.83 SF 0.48 Height: Peaked 355.04 SF Ceiling 252.92 SF Floor 58.27 LF Floor Perimeter 9.28 SF Ceiling 9.28 SF Floor 13.71 LF Floor Perimeter 10.42 SF Ceiling 10.42 SF Floor 14.17 LF Floor Perimeter 34.11 SF Ceiling 34,11 SF Floor 11.33 LF Floor Perimeter Goes to Floor/Ceiling Goes to Floor/Ceiling REPLACE 27.66 0.25 0.00 0.00 0.00 9/23/2011 TOTAL 110.64 8.25 11.22 311.11 156.40 Page: 7 fl ! Accord Restoration Accord Restoration 621-A Lowther Road Lewisber y, PA 17339 CONTINUED - Mstr Bdrm DESCRItPTION QNTY REMOVE REPLACE TOTAL 78. Apply anti-microbial agent 800.55 SF 0.00 0.17 136.09 79. Remove Interior door - Colonist - slab 4.00 EA 6.17 0.00 24.68 only 80. Mask or cover per square foot 306.72 SF 0.33 0.00 101.22 Totals: Mstr Bdrm 859.61 W i WE, ?4 ' 1 ' Missing Wall: DESCRIPTION Mstrbath 626.90 SF Walls 916.94 SF Walls & Ceiling 25.71 SY Flooring 85.58 LF Ceil. Perimeter 1- 6'4 3/4" X 8' Opens into OFFSET QNTY REMOVE Height: Peaked 290.04 SF Ceiling 231.41 SF Floor 69„83 LF Floor Perimeter Goes to Floor/Ceiling REPLACE TOTAL 81. Tear out wet drywall, cleanup, bag for 522.96 SF 0.63 0.00 329.46 disposal 82. Tear out and bag wet insulation 522.96 SF 0.48 0.00 251.02 83. Apply anti-microbial agent 754.37 SF 0.00 0.17 128.24 84. Remove Recessed light fixture 2.00 EA 8.24 0.00 16.48 85. Lift carpet for drying 231.41 SF 0.00 0.25 57.85 86. Tear out wet carpet pad and bag for 231.41 SF 0.34 0.00 78.68 disposal 87. Content Manipulation charge - per hour 2.00 HR 0.00 27.66 55.32 88. Mask or cover per square foot 231.41 SF 0.33 0.00 76.37 Totals: Mstrbath 993.42 BEITZEL-ES 9/23/2011 Page:8 t, , t Accord Restoration Accord Restoration 621-A Lowther Road Lewisberry, PA 17339 rs=?t Walk-in Closet T:?T sr { vvn.?n?c 01-1212* Rear Bdrm 383.48 SF Watts 486.30 SF Walls & Ceiling 11.42 SY Flooring 47.94 LF Ceil. Perimeter QNTY REMOVE REPLACE TOTAL DESCRIPTION 89. Tear out wet carpet pad and bag for 102.82 SF 0.34 0.00 34.96 disposal 40. Lift carpet for drying 102.82 SF 0.00 0.25 25.71 91. Apply anti-microbial agent 102.82 SF 0.00 0.17 17.48 92. Content Manipulation charge - per hour 1.00 HR 0.00 27.66 27.66 105.81 Totals: Walk-in Closet Height: 8' 102.82 SF Ceiling 102.82 SF Floor 47.94 LF Floor Perimeter Height: Sloped 507.30 SF Walls 688.76 SF Walls & Ceiling 19.63 SY Flooring 53.88 LF Ceil. Perimeter 181.46 SF Ceiling 176.63 SF Floor 53.17 LF Floor Perimeter DESCRIPTION QNTY REMOVE REPLACE TOTAL 58. Tear out wet drywall, cleanup, bag for 106.75 SF 0.63 0.00 67.25 disposal 59. Tear out and bag wet insulation 106.75 SF 0.48 0.00 51.24 60. Apply anti-microbial agent 283.38 SF 0.00 0.17 48.17 61. Lift carpet for drying • 39.25 SF 0.00 0.25 9.81 62. Tear out wet carpet pad and bag for 39.25 SF 0.34 0.00 13.35 disposal 63. Mask or cover per square foot 176.63 SF 0.33 0.00 58.29 64. Tear out trim/base and bag for disposal 5.75 LF 0.59 0.00 3.39 65. Remove Interior door - Colonist - pre- 1.00 EA 13.86 0.00 13.86 hung unit 72. Content Manipulation charge - per hour 3.00 HR 0,00 27.66 82.98 Totals: RearBdrm 348.34 BEITZEL-ES 9/23/2011 Page:9 f1 C Accord Restoration Accord Restoration 621-A Lowther Road Lewisberry, PA 17339 54"-{ T ink i N. 'ekwH'[21 DESCRIPTION Closet 212.07 SF Walls 253.34 SF Walls & Ceiling wei 4.59 SY Flooring 26.51 LF Ceil. Perimeter QNTY REMOVE Height: 8' 41.27 SF Ceiling 41.27 SF Floor 26.51 LF Floor Perimeter REPLACE TOTAL 1 26 66. Tear out wet drywall, cleanup, bag for 2.00 SF 0.63 0.00 disposal 67. Tear out and bag wet insulation 2.00 SF 0.48 0.00 0.96 68. Apply anti-microbial agent 43.27 SF 0.00 0.17 7.36 69. Lift carpet for drying 41.27 SF 0.00 0.25 10.32 70. Tear out wet carpet pad and bag for 41.27 SF 0.34 0.00 14.03 disposal 71. Content Manipulation charge - per hour 1.00 HR 0.00 27.66 27.66 61.59 Totals: Closet Total: 2nd Floor 2,679.23 3rd Floor Upper Bdrm Height: 9' DESCRIPTION 936.02 SF Walls 1,480.67 SF Walls & Ceiling 60.52 SY Flooring 104.00 LF Ceil. Perimeter QNTY REMOVE 544.65 SF Ceiling 544.65 SF Floor 104.00 LF Floor Perimeter REPLACE TOTAL 7. Tear out wet non-salvageable carpet, cut 544.65 SF 0.35 0.00 190.63 & bag for disp, 8. Tear out wet carpet pad and bag for 544.65 SF 0.34 0.00 185.18 disposal 9. Apply anti-microbial agent 2,025.32 SF 0.00 0.17 344.30 10. Tear out wet drywall, cleanup, bag for 1,480.67 SF 0.63 0.00 932.82 disposal 11. Tear out and bag wet insulation 1,480.67 SF 0.48 0.00 710.72 BEITZEL-ES 9/23/2011 Page: 10 Accord Restoration Accord Restoration 621-A Lowther Road Lewisberry, PA 17339 CONTINUED - Upper Bdrm DESCRIPTION QNTY REMOVE REPLACE TOTAL Totals: Upper Bdrm 2,363.65 Total: 3rd Floor 2,363.65 Above Garage •---?x• .. Height: Sloped Above garage 455.83 SF Walls 450.57 SF Ceiling "° II 906.40 SF Walls & Ceiling 403.00 SF Floor s 44.78 SY Flooring 91.17 LF Floor Perimeter 94.00 LF Coil. Perimeter a DESCRIPTION QNTY REMOVE REPLACE TOTAL 46. Apply anti-microbial agent 1,309.40 SF 0.00 0.17 222.60 47. Tear out and bag wet insulation 268.67 SF 0.48 0.00 128.96 Totals: Above garage 351.56 Roof DESCRIPTION QNTY REMOVE REPLACE TOTAL 37. Tarp - all purpose poly - per sq ft (labor 5,000.00 SF 0.00 0.49 2,450.00 and material) 38. Roofer -per hour 8.00 HR 0.00 76.44 611.52 Additional labor for 3 roofers to tarp large roof with steep pitches in rain to try and stop the damage coming into property Totals: Roof 3,061.52 General DESCRIPTION QNTY REMOVE REPLACE TOTAL 39. Air mover (per 24 hour period) - No 150.00 EA 0.00 2594 3,891.00 monitoring 30 Fans for 5 days BEITZEL-ES 9!23!2011 Page: 11 ? i I Accord Restoration TD"A 11- l M' Accord Restoration 621-A Lowther Road Lewisberry, PA 17339 CONTINUED - General DESCRIPTION QNTY REMOVE REPLACE TOTAL 40. Dehumidifier (per 24 hour period) - 25.00 EA 0.00 71.00 1,775.00 Large - No monitoring 5 DH's for 5 days 00 HR 10 0.00 27.66 276.60 41. General Laborer - per hour . Labor to haul trash from 3rd floor using the ladder down and outside for removal. 42. Haul debris - per pickup truck load - 2.00 EA 121.54 0.00 243.08 including dump fees 00 EA 1 813.10 0.00 813.10 43. Dumpster load - Approx. 40 yards, 7-8 . tons of debris 00 HR 4 0.00 27.66 110.64 44. Scaffolding Setup & Take down - per . hour 45 Scaffold - per section (per week) 12.00 WK 0.00 35.18 422.16 93. Water Extraction & Remediation 68.00 HR 0.00 20.28 1,379.04 Technician - per hour Total hours of overtime during this project is 61 hours. All line items were calculated on regular time and this line item above is for overtime hours. I took the normal rate for a water tech and subtracted from the overtime rate. 8,910.62 Totals: General 12,323.70 Total: Above Garage Line Item Subtotals: BEITZEL-ES 19,925.42 Adjustments for Base Service Charges Adjustment Cleaning Remediation Technician 80.90 Roofer 229.32 Total Adiustments for Base Service Charges: 310.22 Line Item Totals: BEITZEL-ES 20,235,64 BEITZEL-ES 9/23/2011 Page: 12 I i i Accord Restoration .: fi T'q' 'AT L6'M Accord Restoration 621-A Lowther Road Lewisberry, PA 17339 Grand Total Areas: 11,088.92 SF Walls 5,497.36 SF Floor 0.00 SF Long Wall 5,497.36 Floor Area 8,744.17 Exterior Wall Area 0.00 Surface Area 0.00 Total Ridge Length 5,710.52 SF Ceiling 610.82 SY Flooring 0.00 SF Short Wall 5,839.33 Total Area 879.46 Exterior Perimeter of Walls 0.00 Number of Squares 0.00 Total Hip Length 16,799.44 SF Walls and Ceiling 1,177.45 LIT Floor Perimeter 1,236.60 LF Ceil. Perimeter 11,242.75 Interior Wall Area 0.00 Total Perimeter Length BEITZEL_ES 9/23/2011 Page: 13 I i A Accord Restoration Accord Restoration 621-A Lowther Road LeNvisberry, PA 17339 Line Item Total Total Adjustments for Base Service Charges Material Sales Tax @ Cleaning Mtl Tax @ Subtotal Cleaning Sales Tax @ Replacement Cost Value Net Claim Summary 19,925.42 310.22 6.000% x 1,621.43 97.29 6.000%n x 350.66 21.04 20,353.97 6.000%n x 9,245.97 554.76 $20,908.73 $20,908.73 Craig Morrison BEITZEL-ES 9/23/2011 Page: 14 n ?n O N M C? t Ol W f ? y ? ? ? ? ? ' ?i tr7 0 ? J .a r+ .--? a (y 1 C?1 N ... h-----?- .l t.E4 --? A Z}Q ? td H •-i Q M cV O O Y.? N O\ W t W _ O 00 ? O rK [ JI ? ?] 1f-'? ?L v N Q I,m ?O4 W b H N O cq M N Q? (" , 1 0 t c AXI ? A .n Pr d O c?a M N d O i f fit t. 10 Barrens Church Road Dillsburg, PA 17019 www.musserbuilder.com Phone: 717.432.3496 Fax: 717.432.4192 Registration No.: PA4430 September 14, 2011 Roger Stival Judy Beitzel 1000 Highfield Court Mechanicsburg, PA 17055 Jeff Musser, president of Musser Home Builders, Inc. made a site visit on September 14, 2011 to the home located at 1000 Highfield Court, Mechanicsburg. The following is a general report of the current condition of the home/addition, estimated costs for the work that has been completed to date, a list of the obvious visually observed deficiencies, and the estimated costs to correct the deficiencies listed. General Condition ofAddition: The following work on the addition has been completed: Excavation and rough backfill Foundation Framing (including windows and doors) Roofing on the addition Shingles were removed from the main house - new shingles were delivered to the site (not installed) Note: There is extensive damage to the existing home as a result of the roofing being removed, the underlayment being improperly installed and the new shingles not being installed. The cost to correct that damage is not included in the reports below. Estimated Cost for Work Completed to Date: $41,605 10 Barrens Church Road Dillsburg, PA 17019 www,musserbuilder.com Phone: 717.432.3496 Fax; 717.432.4192 Registration No.; PA4430 Observed Deficiencies ofAddition I The concrete porch floor was poured at the incorrect level and appears to be only 1 V2 thick. (it is impossible to verify the thickness/foundation construction without removing part of the floor.) 2 The roof truss framing is missing some hangerstfasteners 3 The roof system v,as designed incorrectly where it ties into the existing garage roof 4 The shingles that were installed are lacking "starter" shingles 5 The foundation is lacking a brick ledge on the end elevation 6 The windows/patio doors are of poor quality and incorrect style 7 There is no access to the crawl space 8 The concrete floor (exercise room) is poured a the incorrect level and is likely not insulated (The lack of insulation is not visible, but was confirmed by the owner) - the step does not meet the current building code 9 No provisions were made for duct work to the exercise room 10 The roofing underlayment was improperly installed I 1 The second floor bedroom exterior door was removed and the opening framed shut -- with a roof framed against it on the exterior. The bedroom now has no window - does not meet code. 12 Sump pump discharge pipe was cut off and buried under the porch concrete 13 The foundation wall/framed floor system was improperly placed causing the existing interior kitchen wall and new kitchen wall to not line up correctly Note: This list was developed by a visual inspection. Additional deficiencies are possible/likely and may be encountered as the corrective work is in progress. t? 10 Barrens Church Road Dillsburg, PA 17019 www.musserbuilder.com Phone: 717.432.3496 Fax: 717.432.4192 Registration No.: PA4430 Estimated cost to Correct the Deficiencies Listed Above: (items numbers match the deficiency list above) 1 $5937 Demo the concrete floor, remove the top course of the block foundation, re- grade the stone base, form, pour, strip the forms 2 $350 Purchase and install missing hangers 3 $20,000 The roof system would need to be redesigned/re-built 4 $1000 Replace the shingles with the proper materials/installation techniques 5 $2025 Excavate to the footer level, lay 4" block to grade 6 $9875 Remove the existing windows/doors, supply and install the correct style of windows and doors of equal quality of the original Andersen products 7 $400 Cut an access hole to the crawl space 8 $3125 Install floor joists, insulation and a subfloor over the existing concrete floor 9 $1718 Remove the concrete as needed and ran duct work in the floor system 10 It is not practical to change the underlayment. This is one of the causes of the significant roof leaks in the existing home. 11 Between $7000 and $20,000 $7000 includes re-engineering/re-building the existing roof to allow for a "cut out" for an egress window to be placed in the bedroom - framing, roofing, rubber roofing, etc. $20,000 includes re-engineering/re-building the entire roof system to properly account for the window placement - demo, framing, roofing, etc. 12 $625 Re-direct the sump pump discharge line to the side yard 13 $25,000 Demo the existing structure to the foundation level, rebuild the foundation wall at the proper location, re-build the structure Note: The only way to correct all of the deficiencies in the addition is to demo the framing, correct the foundation and re frame the structure with the proper roof system. The cost for that work would be about $50,000. Ronald L. Finck, Esquire Pa. Sup. Ct. I.D. No. 89985 METTE, EVANS & WOODSIDE 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 Phone: (717) 232-5000 Fax: (717) 236-1816 rlfinck@mette.com MMG INSURANCE COMPANY, Plaintiff V. BRIAN M. DORSEY, P. ROGER STIVAL, JR. and JUDY BEITZEL- STIVAL, Defendants TO THE PROTHONOTARY: 1, BERI-AND COUP T', PENNS`i LVANI A IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 12-1509 : JURY TRIAL DEMANDED ENTRY OF APPEARANCE Please enter the appearance of Ronald L. Finck and the law firm of Mette, Evans & Woodside as counsel for Defendants, P. Roger Stival, Jr. and Judy Beitzel-Stival. Papers may be served at the address below. Respectfully submitted, Date: March 23, 2012 METTE, EVANS & WOODSIDE By: Rot,,? Ronald L. Finck, Esquire Sup. Ct. I.D. No. 89985 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax rlfinck@mette.com Attorneys for Defendants P. Roger Stival, Jr. and Judy Beitzel-Stival CERTIFICATE OF SERVICE I certify that I am this day serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of same in the United States Mail at Harrisburg, Pennsylvania, with first-class postage, prepaid, as follows: Kevin C. McNamara, Esquire Thomas Thomas & Hafer 305 North Front Street P.O. Box 999 Harrisburg, PA 17108-0999 Attorneys for Plaintiff, MMG Insurance Company Brian Dorsey 61 Lenwood Park Shippensburg, PA 17257 Pro Se METTE, EVANS & WOODSIDE BY: 9'i'- -ice . &-?A Ronald L. Finck, Esquire Sup. Ct. I.D. No. 89985 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 Attorneys for Defendants P. Roger Stival, Jr. and Judy Beitzel-Stival DATE: March 23, 2012 Ronald L. Finck, Esquire Pa. Sup. Ct. I.D. No. 89985 METTE, EVANS & WOODSIDE 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 Phone: (717) 232-5000 Fax: (717) 236-1816 rlfinck@mette.com MMG INSURANCE COMPANY, Plaintiff V. BRIAN M. DORSEY, P. ROGER STIVAL, JR. and JUDY BEITZEL- STIVAL, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 12-1509 JURY TRIAL DEMANDED STIVAL DEFENDANTS ANSWER TO COMPLAINT FOR DECLARATORY JUDGMENT Defendants, P. Roger Stival, Jr. and Judy Beitzel-Stival (collectively, the "Stivals"), file this Answer to Complaint for Declaratory Judgment as follows: 1. Admitted, upon information and belief. 2. Admitted. 3. Admitted. 4. Admitted, upon information and belief. 5. Admitted. 6. Admitted in part; denied in part. It is admitted only that the Stivals filed the Complaint attached to MMG's Complaint for Declaratory Judgment as Exhibit `B'. The factual averments of the Stivals set forth in Exhibit `B' are incorporated herein by reference as if fully set forth. Exhibit `B' is a document in writing, which as such speaks for itself. To the extent MMG mischaracterizes, misinterprets, misquotes, misrepresents, elaborates upon or removes the contents of the writing from their context, said averments are denied and strict proof thereof is demanded, if deemed relevant. 7. Admitted, upon information and belief. 8. Denied. The averments of paragraph 8 constitute conclusions of law to which no responsive pleading is required by the Pennsylvania Rules of Civil Procedure. 9. Denied. The averments of paragraph 9 constitute conclusions of law to which no responsive pleading is required by the Pennsylvania Rules of Civil Procedure. 10. Denied. The averments of paragraph 10 constitute conclusions of law to which no responsive pleading is required by the Pennsylvania Rules of Civil Procedure. 11. Denied. The averments of paragraph 11 constitute conclusions of law to which no responsive pleading is required by the Pennsylvania Rules of Civil Procedure. 12. Denied. The averments of paragraph 12 constitute conclusions of law to which no responsive pleading is required by the Pennsylvania Rules of Civil Procedure. 13. Denied. The averments of paragraph 13 constitute conclusions of law to which no responsive pleading is required by the Pennsylvania Rules of Civil Procedure. WHEREFORE, Defendants P. Roger Stival, Jr. and Judy Beitzel-Stival, respectfully request that the Court dismiss the Complaint for Declaratory Judgment with prejudice, together with such other relief as the Court deems just and appropriate under the circumstances. Respectfully submitted, METTE, EVANS & WOODSIDE B d-/. 4't't? Ronald L. Finck, Esquire 2 Sup. Ct. I.D. No. 89985 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax rlfinckgmette.com Attorneys for Defendants P. Roger Stival, Jr. and Judy Beitzel-Stival Date: March 28, 2012 VERIFICATION I, Judy Beitzel-Stival, have read the foregoing document and verify that the facts set forth therein are true and correct to the best of my knowledge, information and belief. To the extent that the foregoing document and/or its language is that of counsel, I have relied upon counsel in making this Verification. I understand that any false statements made herein are subject to the penalties of 18 Pa. C.S. §4904 relating to unworn falsification to authorities. 1 DATE: 0i Z2"4 'I Y EITZE STIVAL VERIFICATION I, P. Roger Stival, Jr., have read the foregoing document and verify that the facts set forth therein are true and correct to the best of my knowledge, information and belief. To the extent that the foregoing document and/or its language is that of counsel, I have relied upon counsel in making this Verification. I understand that any false statements made herein are subject to the penalties of 18 Pa. C.S. §4904 relating to unworn falsification to authorities. DATE: 3'- .? 3 - Oz ?-? c>lL ?, P. R ER STIVAL, JR. s4s1:9v1 CERTIFICATE OF SERVICE I certify that I am this day serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of same in the United States Mail at Harrisburg, Pennsylvania, with first-class postage, prepaid, as follows: Kevin C. McNamara, Esquire Thomas Thomas & Hafer 305 North Front Street P.O. Box 999 Harrisburg, PA 17108-0999 Attorneys for Plaintiff, MMG Insurance Company Brian Dorsey 61 Lenwood Park Shippensburg, PA 17257 Pro Se METTE, EVANS & WOODSIDE BY: 9.'I? --?- a? Ronald L. Finck, Esquire Sup. Ct. I.D. No. 89985 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 Attorneys for Defendants P. Roger Stival, Jr. and Judy Beitzel-Stival DATE: March 28, 2012 SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson Sheriff Jody S Smith Chief Deputy Richard W Stewart Solicitor MMG Insurance Company vs. P. Roger Stival, Jr. (et al.) 1- r K - ?ttt ?iJ lr..E \l- 5t e tt ;?y Case Number 2012-1509 SHERIFF'S RETURN OF SERVICE 03/09/2012 Ronny R. Anderson, Sheriff who being duly sworn according to law states that he made a diligent search and inquiry for the within named defendant, to wit: Brian Dorsey, but was unable to locate him in his bailiwick. He therefore deputized the Sheriff of Franklin County, Pennsylvania to serve the within Complaint and Notice according to law. 03/16/2012 10:22 AM - Franklin County Return: And now March 16, 2012 at 1022 hours I, Dane Anthony, Sheriff of Franklin County, Pennsylvania, do hereby certify and return that I served a true copy of the within Complaint and Notice, upon the within named defendant, to wit: Brian Dorsey by making known unto Natalie Dorsey, Wife of Defendant at 61 Lenwood Park, Shippensburg, Pennsylvania 17257 its contents and at the same time handing to her personally the said true and correct copy of the same. 03/28/2012 06:10 PM - Robert Bitner, Deputy Sheriff, who being duly sworn according to law, states that on March 28, 2012 at 1810 hours, he served a true copy of the within Complaint and Notice, upon the within named defendant, to wit: Judy Beitzel-Stival, by making known unto herself personally, at 1000 Highfield Court, Mechanicsburg, Cumberland County, Pennsylvania 17055 its contents and at the same time handing to her personally the said true and correct copy of the same. ROB RT BITNER, DEPUTY 03/28/2012 06:10 PM - Robert Bitner, Deputy Sheriff, who being duly sworn according to law, states that on March 28, 2012 at 1810 hours, he served a true copy of the within Complaint and Notice, upon the within named defendant, to wit: P. Roger Stival, Jr., by making known unto Judy Beitzel-Stival, Wife of Defendant at 1000 Highfield Court, Mechanicsburg, Cumberland County, Pennsylvania 17055 its contents and at the same time handing to her personally the said true and correct copy of the same. R ERT BITNER, D -PUTY SHERIFF COST: $82.60 March 30, 2012 SO ANSWERS, RON R ANDERSON, SHERIFF SHERIFF'S RETURN -- REGULAR CASE NO: 2012-00054 T COMMONWEALTH OF PENNSYLVANIA: COUNTY OF FRANKLIN MMG INSURANCE COMPANY VS BRIAN DORSEY ANGEL L LAVIENA , Deputy Sheriff of FRANKLIN County, Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT DORSEY BRIAN DEFENDANT the at 1022:00 Hour, on the 16th day of March , 2012 at 61 LENWOOD PARK SHIPPENSBURG, PA 17257 NATALIE DORSEY WIFE a true and attested copy of COMPLAINT together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing .00 Service .00 Affidavit .00 Surcharge .00 .00 .00 Sworn and Subscribed to before me this A_'54 day of A.D. Notary So Answers: ANGEL L WVI?ENA By ty S u heri i 03/23/2012 KEVIN C MCNAMARA ESQ was served upon by handing to COMMONWEALTH OF PENNSYLVANIA NOT IAL SEAL RICHARD D. McCARTY, Notary Public %hambersburg Boro., Franklin County Any Commission Expires Jan. 29, 2015 IN THE COURT OF COMMON PLEAS OF THE 9TH JUDICIAL DISTRICT OF "- PENNSYLVANIA-CUMBERLAND COUNTY ,;-- S,2 71- MMG Insurance Company, Civil Action - Law ,--' Plaintiff -4- > r- `_' ' --, < . -o vs. No. 2012 - 1509 =c) rv Brian M. Dorsey, P. Roger Stival, Jr., - and Judy Beitzel-Stival, Defendants DEFENDANT BRIAN M. DORSEY'S ANSWER TO PLAINTIFF'S COMPLAINT NOW comes Defendant Brian M. Dorsey, by his attorneys, Kulla, Barkdoll, Ullman & Painter, P.C., and sets forth the following: 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. 5. Admitted. 6. The Complaint speaks for itself. 7. Admitted. 8. Admitted. By way of further answer, Mr. Dorsey believes that he is insured against the alleged damages. 9. Admitted in part, denied in part. While the underlying Complaint does caption the counts as ones for breaches of contract, the body of several of the counts asserts damages are based on, inter alia, water damage. 10. Denied. The assertion is a conclusion of law to which no affirmative response is required; however, by way of further answer, Counts I, II, and VI refer to "damages" that relate to water damage as stated in the Background section of the underlying Complaint. 11. Denied. The underlying Complaint suggests in the Background section that the damages to the kitchen remodeling project were related to water damage. 12. Denied. The assertions are conclusions of law to which no affirmative response is required. 13. Denied. The assertions are conclusions of law to which no affirmative response is required. WHEREFORE, it is requested that this Honorable Court dismiss the Plaintiff's Complaint. Date: V -,3 , 2012 Supreme Court ID 59003 Kulla, Barkdoll, Ullman & Painter, P.C. 9 East Main Street Waynesboro, PA 17268 717-762-3374 VERIFICATION I verify that the statements made in the attached document are true and correct to the best of my knowledge and belief. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S.§4904, relating to unsworn falsifications to authorities. Date: 2012 Brian M. Dorsey, EsquitV CERTIFICATE OF SERVICE I DO HEREBY CERTIFY that on this date I caused the foregoing Answer to be served via regular U.S. mail, addressed as follows: Kevin C. McNamara, Esquire Thomas, Thomas & Hafer, LLP P.O. Box 999 Harrisburg, PA 17108-0999 Ronald L. Finck, Esquire Mette, Evans & Woodside 3401 North Front Street Harrisburg, PA 17110-0950 Date: -I('" ? , 2012 Stephen D. Kulla, Esquire Attorney for Defendant F!LED-GI'Ell t" `F THE PROTHONOTAR,'` THOMAS, THOMAS & HAFER, LLP Kevin C. McNamara, Esquire Identification Number: 72668 P.O. Box 999 Harrisburg, PA 17108-0999 717/237-7132 Attorneys for Plaintiff MMG INSURANCE COMPANY 44 Maysville Street Presque Isle, ME 04769-07209, v. Plaintiff 2012 APR 20 AM 11: 20 CUMBERLAND COUNTY PENNSYLVANIA IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA is-/5oq NO.44-89+5-CIVIL TERM BRIAN M. DORSEY, P. ROGER STIVAL, JR. and JUDY BEITZEL- STIVAL, Defendants JURY TRIAL DEMANDED MOTION FOR JUDGMENT ON THE PLEADINGS AND NOW, comes MMG Insurance Company, by its attorneys, Thomas, Thomas & Hafer, LLP, and moves for judgment on the pleadings based upon the following: 1. This is a declaratory judgment action initiated by MMG which is related to insurance coverage under a Special Trade Contractors Policy issued to Brian Dorsey by MMG Insurance Company under policy number SC10975677. A copy of said policy was attached to MMG's Declaratory Judgment Complaint as Exhibit "A." 2. Mr. Dorsey has been sued in the Cumberland County Court of Common Pleas by P. Roger Stival, Jr. and Judy Beitzel-Stival at Docket Number 11-8915 (The "Stival Action"). The substance of the allegations in the Stival Action are that Brian Dorsey breached a series of construction contracts for renovations to the Stival's home. 3. Following the initiation of litigation by the Stivals, Mr. Dorsey reported the lawsuit to MMG seeking a defense and indemnification for the claims raised in the Stival Action. 4. MMG subsequently agreed to provide a defense under a reservation of rights and initiated this declaratory judgment action seeking a determination from the Court as to whether a duty to defend arose by virtue of the allegations made in the Stival Action. 5. In Pennsylvania, an insurer's duty to defend is determined solely based upon the allegations in the underlying Complaint. 6. Based upon the facts alleged in the Stival Action, MMG has no coverage for the claims and has no duty to defend Mr. Dorsey in the Stival Action. WHEREFORE, Plaintiff MMG Insurance Company respectfully requests that the Court issue a declaratory judgment that MMG has no duty to defend or indemnify Brian Dorsey in the Stival Action. Respectfully submitted, n THOMAS, THOMAS & HAFER, LLP r By. Kevin Q I'Namara, Esquire I. D.# Jas n C. Giurintano, Esquire I.D.#89177 305 North Front Street P.O. Box 999 Harrisburg, PA 17108-0999 (717) 237-7132 CERTIFICATE OF SERVICE I, Kevin C. McNamara, Esquire, of the law firm of Thomas, Thomas & Hafer, LLP, hereby certify that I have served a true and correct copy of the foregoing document on the following persons by placing same in the United States mail, postage prepaid, on the 19th day of April, 2012: Ronald L. Fink, Esquire Mette, Evans & Woodside P. O. Box 5950 Harrisburg, PA 17110 Brian Dorsey Dorsey Construction 61 Lenwood Park Shippensburg, PA 17257 By: THOMAS, THOMAS & LLP Kevin C. M m ra, Esquire Attorney I.D 7 68 Jason C. ntano, Esquire Attorney I.D. 89177 1077339.1 PRAECIPE FOR LISTING CASE FOR ARGUMENT (Must be typewritten and submitted in triplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY Argument Court.) July 13, 2012 CAPTION OF CASE (entire caption must be stated in full) MMG Insurance Company (List the within matter for the next ---------------------------------- ?TJ ,. co vs. -?. Brian M. Dorsey, P. Roger Stival, Jr., et al. `' } No. 1509 2012 Term 1. State matter to be argued (i.e., plaintiff's motion for new trial, defendant's demurrer to complaint, etc.): Plaintiffs Motion for Judgment on the Pleadings 2. Identify all counsel who will argue cases: (a) for plaintiffs: Kevin C. McNamara, Esquire, 305 N. Front Street, Harrisburg, PA 17101 (Name and Address) Jason C. Giurintano, Esquire, 305 N. Front Street, Harrisburg, PA 17101 (b) for defendants: Ronald L. Fink, Esquire, P.O. Box 5950, Harrisburg, PA 17110 (Name and Address) Stephen D. Kulla, Esquire, 9 East Main Street, Waynesboro, PA 17268 3. 1 will notify all parties in writing within two days that this case has been listed for argument. 4. Argument Court Date: July 13, 2012 Date: 06/05/2012 Signature Kevin C. McNamara, Esquire ' r ? Print your name Plaintiff - MMG Insurance Company Attorney for INSTRUCTIONS: 1. Original and two copies of all briefs must be filed with the COURT ADMINISTRATOR (not the Prothonotary) before argument. 2. The moving party shall file and serve their brief 14 days prior to argument. 3. The responding party shall file their brief 7 days prior to argument. 4. If argument is continued new briefs must be filed with the COURT ADMINISTRATOR (not the Prothonotary) after the case is relisted. hi Qyo tlrv , 0-14114- IN THE COURT OF COMMON PLEAS OF THE 9T" JUDICIAL DISTRICT OF PENNSYLVANIA-CUMBERLAND COUNTY MMG Insurance Company, Civil Action - Law Plaintiff vs. No. 2012 - 1509 Brian M. Dorsey, P. Roger Stival, Jr., and Judy Beitzel-Stival, r Defendants ANSWER TO MOTION FOR JUDGMENT ON THE PLEADINGS NOW COMES Brian Dorsey by his attorneys, Kulla, Barkdoll, Ullman and Pair i,?.G.;`' c? r,) ; - and sets forth the following response to the Plaintiff's Notice for Judgment on the Pleading, 1. Admitted. 2. Admitted in part and Denied in part. It is Admitted that Brian Dorsey has been sued in the Cumberland County Court of Common Pleas. The remaining allegation is a conclusion of law to which no affirmative response is required. By way of further answer, the pleadings shall speak for themselves and do not require any interpretation. 3. Admitted. 4. Admitted. 5. Denied. The assertion is a conclusion of law to which no affirmative response is required. 6. Denied. The assertion is a conclusion of law to which no affirmative response is required. The Defendant has filed an .Answer to the Plaintiffs Complaint and has raised issues warranting a hearing on this matter and which raise a legitimate question as to the facts alleged by the Plaintiff in their petition for declaratory judgment. WHEREFORE, the Defendant, Brian Dorsey requests this Honorable Court deny a judgment on the pleadings and order that MMG has a duty to defend and /or indemnify Brian Dorsey in the initial court case filed by P. Roger Stival, Jr. and Judy Beitzal-Stival. Respectfully submitted, 1 li --- Stephen D. Kulla Attorney for Brian Dorsey VERIFICATION I verify that the statements made in the attached document are true and correct to the best of my knowledge and belief. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S.§4904, relating to unsworn falsifications to authorities. (a Date: //.f-2 , 012 k Stephen D. Kulla CERTIFICATE OF SERVICE I DO HEREBY CERTIFY that on this date I caused the foregoing Answer to be served via regular U.S. mail, addressed as follows: Kevin C. McNamara, Esquire Thomas, Thomas & Hafer, LLP P.O. Box 999 Harrisburg, PA 17108-0999 Ronald L. Finck, Esquire Mette, Evans & Woodside 3401 North Front Street Harrisburg, PA 17110-0950 Date: 6-/,5--/,-'-,2012 Stephen D. Kulla. Esquire Attorney for Brian Dorsey MMG INSURANCE CO., Plaintiff V. BRIAN M. DORSEY, P. ROGER STIVAL, JR., & JUDY BEITZEL-STIVAL, Defendant : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2012 -1509 CIVIL TERM IN RE: PLAINTIFF'S MOTION FOR JUDGMENT ON THE PLEADINGS BEFORE GUIDO PLACEY, JJ. ORDER OF COURT AND NOW, this 261H- day of JULY, 2012, after review of the briefs filed on behalf of the parties and having heard argument thereon, we find that the cases of Kvaerner Metals v. Commercial Union Ins. 908 A.2d 888 (Pa. 2006) and Millers Capital Insurance Co., v. Gambone Brothers 941 A.2d 707 (Pa. Super. 2007) are controlling. Plaintiffs motion is GRANTED. MMG Insurance Company has no coverage for and has no duty to defend or indemnify Brian Dorsey in the action brought by P. Roger Stival and Judy Beitzel-Stival in this Court at docket No. 2011 - 8915 CIVIL. ?Kevin C. McNamara, Esquire ?/ Stephen D. Kulla, Esquire V Ronald L. Finck, Esquire V Court Administrator sld e-,S . t?t°?! By c> c MW 77° Edward E. Guido, ? c--f 4- ?M 010 >?eL