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Home My WebLink About05-5991COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW THE TRAVELERS INDEMNITY COMPANY OF AMERICA and THE TRAVELERS INDEMNITY COMPANY OF ILLINOIS Plaintiff No. Q vs. 1 WPG FASTENERS, INC. Defendant CIVIL ACTION 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, 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 Association 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 AMATO AND MARGLE, P. By: onald o, Esq., Atty ID #32323 Michael J. Kennedy, Esq., Atty ID #72412 Michael R. Lessa, Esq., Atty ID #88617 Attorneys for Plaintiff 107 North Commerce Way Bethlehem, PA 18017 (610) 866-0400 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW THE TRAVELERS INDEMNITY COMPANY OF AMERICA and THE TRAVELERS INDEMNITY COMPANY OF ILLINOIS Plaintiff No. Q $ - 59 9 / vs. WPG FASTENERS, INC. Defendant(s) CIVIL ACTION COMPLAINT The above Plaintiff brings this action against the above Defendant to recover the sum of $10,982.88, with interest thereon as hereinafter stated, upon the following cause of action: 1. The Plaintiff, THE TRAVELERS INDEMNITY COMPANY OF AMERICA is located at One Hartford Square, Hartford CT 06183. 2. The Plaintiff, THE TRAVELERS INDEMNITY COMPANY OF ILLINOIS is located at One Hartford Square, Hartford CT 06183. 3. The causes of action have a common nucleus of operative fact in that Defendant was billed under a common account number by Plaintiffs and the Plaintiff's are related companies. A true and correct copy of Defendant's statement of account is attached hereto, made a part hereof, and marked Exhibit "A". 4. The Defendant, WPG FASTENERS, INC. is located at 3617 B, Simpson Ferry Road, CAMP HILL PA 17011-6407. COUNT I (The Travelers Indemnity Company of America vs. Defendant) Breach of Contract 5. At the special instance and request of Defendant, Plaintiff issued its Workers Compensation policy of insurance, naming Defendant as the insured, as fully described in the attached Policy, a true and correct copy of which is attached hereto, made a part hereof and marked Exhibit B". 6. The above policy became operative and in full force and continued as such until later canceled, the respective dates of issuance and cancellation are more fully described in attached Exhibit B". 7. Pursuant to the terms and conditions of the policy, Defendant was required to pay earned premiums in the amount of $16,508.00, all of which were calculated in accordance with the above Workers Compensation policy of insurance. 8. Defendant has failed to pay earned premiums in the amount of $9,340.00. 9. Plaintiff has performed and complied with all terms and conditions required under said above policy of insurance. 10. Plaintiff is entitled to receive interest on the above amount determined by applying the statutory interest rate of 6.00 % per annum to the past due balance. As of July 7, 2005 the total amount of interest due to plaintiff is $1,016.40. 11. Plaintiff is entitled to have the 6.00% interest charge continue to accrue as set forth above, from July 7, 2005 on down to the date of judgment in this matter. 12. Plaintiff has made demand against Defendant for the aforesaid sum, but Defendant failed or refused to pay the same or any part thereof. WHEREFORE, Plaintiff demands judgment against Defendant for $10,356.40 together with the continually accruing interest charge at the statutory rate of 6.00 % per annum from July 7, 2005, and cost of suit. COUNT II (The Travelers Indemnity Company of Illinois vs. Defendant) Breach of Contract 13. At the special instance and request of Defendant, Plaintiff issued its General Liability policy of insurance, naming Defendant as the insured, as fully described in the attached Policy, a true and correct copy of which is attached hereto, made a part hereof and marked Exhibit "C". 14. The above policy became operative and in full force and continued as such until later canceled, the respective dates of issuance and cancellation are more fully described in attached Exhibit "C". 15. Pursuant to the terms and conditions of the policy, Defendant was required to pay earned premiums in the amount of $8,493.00, all of which were calculated in accordance with the above Workers Compensation policy of insurance. 16. Defendant has failed to pay earned premiums in the amount of $565.00. 17. Plaintiff has performed and complied with all terms and conditions required under said above policy of insurance. 18. Plaintiff is entitled to receive interest on the above amount determined by applying the statutory interest rate of 6.00 % per annum to the past due balance. As of July 7, 2005 the total amount of interest due to plaintiff is $61.48. 19. Plaintiff is entitled to have the 6.00% interest charge continue to accrue as set forth above, from July 7, 2005 on down to the date of judgment in this matter. 20. Plaintiff has made demand against Defendant for the aforesaid sum, but Defendant failed or refused to pay the same or any part thereof. WHEREFORE, Plaintiff demands judgment against Defendant for $626.48 together with the continually accruing interest charge at the statutory rate of 6.00% per annum from July 7, 2005, and cost of suit. AMATO AND MARGLE, PGA By: Ronald Amato, Esq., Atty ID #32323 Michael J. Kennedy, Esq., Atty ID #72412 Michael R. Lessa, Esq., Atty ID #88617 Attorneys for Plaintiff 107 North Commerce Way Bethlehem, PA 18017 (610) 866-0400 VERIFICATION hereby states that he/she is the Pc4n? i of G; pr,I ??(~?,°_? 5 ?d£10171 ?7 Cd , Plaintiff in this action, and verifies that the statements made in the attached Complaint are true and correct to the best of his/her knowledge, information and belief. The undersigned understands that the statements herein are made subject to the penalties of 18 PA C.S. §4904 relating to unsworn falsification to authorities. Policy premium/payment history for WPG Fasteners UB - 3795A536 eff. 9/14/02 - 03 Workers Compensation Original policy premium $ 7,168.00 Final audit $ 9,340.00 Final earned premium $16,508.00 680 - 3793A531 eff. 9/14/02 - 03 General Liability Original policy premium $ 7,928.00 Final audit $ 565.00 Final earned premium $ 8,493.00 810 - 3795A837 eff. 9/14/02 - 03 Automobile Original policy premium $ 6,206.00 Endorsement eff. 9/14/02 $ 145.00 Endorsement eff 9/14/02 $ 34.00 Endorsement eff. 2/3/03 $ 63.00 CR Endorsement eff. 1/11/03 $ 4,897.00 Endorsement eff. 2/3/03 $ 5.00 CR Endorsement eff. 4/9/03 $ 429.00 Endorsement eff 3/9/03 870.00 CR Final earned premium $10,773.00 CUP - 5048W209 eff. 9/14/02 - 03 Umbrella Original policy premium $ 4,712.00 Total policy premiums $40,486.00 r? Payments: 6/23/03 $ 4,422.00 " 5/27/03 $ 2,766.12 4/23/03 $ 3,812.44 3/18/03 $ 4,296.62 2/25/03 $ 2,180.01 1/24/03 $ 2 180.01 12/16/02 , $ 2,180.01 11/26/02 $ 2,180.01 11/4/02 $ 4,922.83 10/29/02 1,640.95 total payments $30,581.00 Total policy premiums $40,486.00 Total payments 0 $30,581.0 Total outstanding $ 9,905.00 ,EXHIBIT 1;i ' -z f ' , s w TravelersPropertyCasualty AdNkk I AM?A.d7Yav lenGroap J WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY TYPE v INFORMATION PAGE WC 00 00 01 ( A) POLICY NUMBER: (IRUB-3795A53-6-02) NEW-02 INSURER: THE TRAVELERS INDEMNITY COMPANY OF AMERICA NCCI CO CODE: 13439 1. INSURED: WPG FASTENERS 3617 SIMPSON FERRY ROAD CAMP HILL PA 17011 PRODUCER: ACORDIA NORTHEAST INC P 0 BOX 1220 MECHANICSBURG PA 17055 Insured is A Other work places and identification numbers are shown in the schedule(s) attached. 2. The policy period is from 09-14-02 to 09-14-03 12:01 A.M. at the insured's malting addresss. 3. A. WORKERS COMPENSATION INSURANCE: Part One of the policy applies to the Workers Compensation Law of the state(s) listed here: PA B. EMPLOYERS LIABILITY INSURANCE: Part Two of the policy applies to work in each state listed in item 3.A. The limits of our liability under Part Two are: Bodily Injury by Accident: $ 100000 Each Accident Bodily Injury by Disease: $ 500000 Policy Limit Bodily Injury by Disease: $ 100000 Each Employee C. OTHER STATES INSURANCE: Part Three of the policy applies to the states, if any, listed here: AL AR AZ CA CO CT DC DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS MT NC NE NR NJ NM NV NY OK OR RI SC SD TN TX UT VA VT WI D. This policy includes these endorsements and schedules: SEE LISTING OF ENDORSEMENTS - EXTENSION OF INFO PAGE 4. The premium for this policy will be determined by our Manuals of Rules, Classifications, Rates and Rating Plans. All required information is subject to verification and change by audit to be made ANNUALLY. DATE OFISSUE: 09-06-D2 TS OFFICE: READING 177 PRODUCER: ACORDIA NORTHEAST INC GA672 DIRECT BILL TravelersPropertyCasualtp? n x?mna.e TrmmlersGroup WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY TYPE v INFORMATION PAGE WC 00 00 01 ( A) POLICY NU MBER: (IHUB-3795A53-6-02) CLASSIFICATION SCHEDULE: CLASSIFICATIONS SIC-CODE: 9999 CODE NO PREMIUM BASIS ESTIMATED RATES ESTIMATED TOTAL ANNUAL PER $100 OF ANNUAL REMUNERATION REMUNERATION PREMIUM SEE EXTENSION OF INFORMATION PAGE - SCHEDULE(S) ------------------------------------------------------------- TOTAL ESTIMATED ANNUAL STANDARD PREMIUM $ PREMIUM DISCOUNT 0900-37 EXPENSE CONSTANT TOTAL ESTIMATED PREMIUM TAXES AND SURCHARGES DEPOSIT AMOUNT DUE Minimum Premium: $ 1010 DATE OF ISSUE: 09-06-02 TS OFFICE: READING 177 PRODUCER: ACORDIA NORTHEAST INC GA672 ----------- STANDARD 6734 NONE 200 6934 234 7168 COUNTERSIGNED-AGENT Travelers Property Casualty WORKERS COMPENSATION nwmsRm TravelersGl AND EMPLOYERS LIABILITY POLICY EXTENSION OF INFO PAGE-SCHEDULE WC 00 00 01 ( A) POLICY NUMBER: (IHUB-3795A53-6-02) INSURER: THE TRAVELERS INDEMNITY COMPANY OF AMERICA INSURED'S NAME: WPG FASTENERS RATE BUREAU ID: 2973710 PREMIUM BASIS ESTIMATED RATES TOTAL ANNUAL PER $100 OF CLASSIFICATION LOCATION 001 01 FEIN 281843096 ENTITY CD 001 WPG FASTENERS, INC. IDEAL CARDS, INC. APPLE FASTENERS 3617A SIMPSON FERRY ROAD CAMP HILL, PA 17011 WHOLESALE STORE HARDWARE STORE SALESPERSON-OUTSIDE CODE 13439-PA ESTIMATED ANNUAL PREMIUM 0924 40000 6.49 2596 0926 98000 4.21 4126 0951 52510 .84 441 DATE OF ISSUE: 09-06-02 TS SCHEDULE NO: 1 OF MORE TravelersPropertyCasualty?k nu dTravelersGroup J CLASSIFICATION LOCATION 001 01 (CONT'D) OFFICE WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY EXTENSION OF INFO PAGE-SCHEDULE WC 00 00 01 ( A) CODE 0953 POLICY NUMBER: (IHUB-3795A53-6-02) PREMIUM BASIS ESTIMATED TOTAL ANNUAL 149000 TOTAL PREMIUM SUBJECT TO EXPERIENCE MODIFICATION $ EXPERIENCE MODIFICATION: .968 MODIFIED PREMIUM 10.00% SCHEDULE CREDIT(9887) TOTAL ESTIMATED ANNUAL STANDARD PREMIUM EXPENSE CONSTANT(0900) 3.37% PA EMPL ASSESSMENT (0938) TOTAL ESTIMATED PREMIUM DEPOSIT AMOUNT DUE RATES PER $100 OF REMUNERATION .38 7729 7482 748 6734 200 234 7168 7168 ESTIMATED ANNUAL PREMIUM 566 DATE OF ISSUE: 09-06-02 TS SCHEDULE NO: 2 OF LAST TravelersPropertyCasualtyy AO%k I WORKERS COMPENSATION nxe®nRahuwlersGmup AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC 00 00 01 (A) POLICYNUMBER: (IHUB-3795A53-6-02) LISTING OF ENDORSEMENTS EXTENSION OF INFO PAGE We agree that the following listed endorsements form a part of this policy on its effective date. WC 00 00 01 A - 001 WC 00 00 01 A - 001 WC 00 00 01 A - 001 WC 00 00 01 A - 001 WC 99 04 08 00 - 001 WC 37 03 10 B - 001 WC 37 06 01 00 - 001 WC 37 06 02 00 - 001 WC 37 06 03 A - 001 WC 37 06 04 00 - 001 INFORMATION PAGE INFORMATION PAGE 2 EXTENSION OF INFORMATION PAGE - SCHEDULE ENDORSEMENT LISTING PREMIUM DISCOUNT ENDORSEMENT EXCLUSTION OF EXEC OFFICERS - PA SPECIAL PA ENDT -- INSPECTION OF MANUALS NOTICE INS CONSULTATION SERVICE EXEMPT. PA ACT 86-1986 ENDORSEMENT PA EMPLOYER ASSESSMENT ENDORSEMENT DATE OF ISSUE: 09-06-02 ST ASSIGN: Page 1 of LAST WC 00 00 00 (A) The Travelers Insurance Companies (Each a Stock Insurance Company) Hartford, Connecticut WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY In return for the payment of the premium and subject to all terms of this policy, we agree with you as follows: GENERAL SECTION A. The Policy This policy includes at its effective date the Infor- mation Page and all endorsements and schedules listed there. It is a contract of insurance between you (the employer named in Item I of the Informa- tion Page) and us (the insurer named on the Information Page). The only agreements relating to this insurance are stated in this policy. The terms of this policy may not be changed or waived except by endorsement issued by us to be part of this policy. B. Who Is Insured You are insured if you are an employer named in Item 1 of the Information Page. If that employer is a partnership, and if you are one of its partners, you are insured, but only in your capacity as an em- ployer of the partnership's employees. C. Workers Compensation Law ease law of each state or territory named in Item 3.A. of the Information Page. It includes any amendments to that law which are in effect during the policy period. It does not include any federal workers or workmen's compensation law, any fed- eral occupational disease law or the provisions of any law that provide nonoccupational disability benefits. D. State State means any state of the United States of America, and the District of Columbia. E. Locations This policy covers all of your workplaces listed in Items 1 or 4 of the Information Page; and it covers all other workplaces in Item 3.A. states unless you have other insurance or are self-insured for such workplaces. Workers Compensation Law means the workers or workmen's compensation law and occupational dis- PART ONE -WORKERS COMPENSATION INSURANCE A. How This Insurance Applies This workers compensation insurance applies to bodily injury by accident or bodily injury by disease. Bodily injury includes resulting death. 1. Bodily injury by accident must occur during the policy period. 2. Bodily injury by disease must be caused or ag- gravated by the conditions of your employment. The employee's last day of last exposure to the conditions causing or aggravating such bodily injury by disease must occur during the policy period. B. We Will Pay We will pay promptly when due the benefits re- quired of you by the workers compensation law. C. We Will Defend We have the right and duty to defend at our ex- pense any claim, proceeding or suit against you for benefits payable by this insurance. We have the right to investigate and settle these claims, proceed- ings or suits. We have no duty to defend a claim, proceeding or suit that is not covered by this insurance. D. We Will Also Pay We will also pay these costs, in addition to other amounts payable under this insurance, as part of any claim, proceeding or suit we defend: 1. reasonable expenses incurred at our request, but not loss of earnings; 2. premiums for bonds to release attachments and for appeal bonds in bond amounts up to the amount payable under this insurance; 3. litigation costs taxed against you; 4. interest on a judgment as required by law until we offer the amount due under this insurance; and 5. expenses we incur. E. Otherlnsurance We will not pay more than our share of benefits and costs covered by this insurance and other insurance or self-insurance. Subject to any limits of liability that may apply, all shares will be equal until the loss is paid. If any insurance or self-insurance is ex- hausted, the shares of all remaining insurance will be equal until the loss is paid. F. Payments You Must Make You are responsible for any payments in excess of the benefits regularly provided by the workers com- pensation law including those required because: 1. of your serious and willful misconduct; 2. you knowingly employ an employee in violation of law; 3. you fail to comply with a health or safety law or regulation; or 4_ you discharge, coerce or otherwise discriminate against any employee in violation of the workers compensation law. If we make any payments in excess of the benefits regularly provided by the workers compensation law on your behalf, you will reimburse us promptly. Page 1 of 5 G. Recovery From Others We have your rights, and the rights of persons enti- tled to the benefits of this insurance, to recover our payments from anyone liable for the injury. You will do everything necessary to protect those rights for us and to help us enforce them. H. Statutory Provisions These statements apply where they are required by law- L As between an injured worker and us, we have notice of the injury when you have notice. 2. Your default or the bankruptcy or insolvency of you or your estate will not relieve us of our du- ties under this insurance after an injury occurs. 3. We are directly and primarily liable to any per- son entitled to the benefits payable by this in- surance. Those persons may enforce our duties; so may an agency authorized by law. Enforcement may be against us or against you and us. 4. Jurisdiction over you is jurisdiction over us for purposes of the workers compensation law. We are bound by decisions against you under that law, subject to the provisions of this policy that are not in conflict with that law. 5. This insurance conforms to the parts of the workers compensation law that apply to: a. benefits payable by this insurance; b. special taxes, payments into security or other special funds, and assessments pay- able by us under that law. 6. Terms of this insurance that conflict with the workers compensation law are changed by this statement to conform to that law. Nothing in these paragraphs relieves you of your duties under this policy. PART TWO - EMPLOYERS LIABILITY INSURANCE A. How This Insurance Applies This employers liability insurance applies to bodily injury by accident or bodily injury by disease. Bodily injury includes resulting death. 1. The bodily injury must arise out of and in the course of the injured employee's employment by you. 2. The employment must be necessary or inci- dental to your work in a state or territory listed in Item 3.A. of the Information Page. 3. Bodily injury by accident must occur during the policy period. 4. Bodily injury by disease must be caused or ag- gravated by the conditions of your employment. The employee's last day of last exposure to the conditions causing or aggravating such bodily injury by disease must occur during the policy period. 5. If you are sued, the original suit and any related legal actions for damages for bodily injury by accident or by disease must be brought in the United States of America, its territories or pos- sessions, or Canada. B. We Will Pay We will pay all sums you legally must pay as dam- ages because of bodily injury to your employees, provided the bodily injury is covered by this Employers Liability Insurance. The damages we will pay, where recovery is per- mitted by law, include damages: 1. for which you are liable to a third party by rea- son of a claim or suit against you by that third party to recover the damages claimed against such third party as a result of injury to your employee; 2. for care and loss of services; and 3. for consequential bodily injury to a spouse, child, parent, brother or sister of the injured employee; provided that these damages are the direct conse- quence of bodily injury that arises out of and in the course of the injured employee's employment by you; and 4. because of bodily injury to your employee that arises out of and in the course of employment, claimed against you in a capacity other than as employer. C. Exclusions This insurance does not cover: 1. liability assumed under a contract. This exclu- sion does not apply to a warranty that your work will be done in a workmanlike manner; 2. punitive or exemplary damages because of bod- ily injury to an employee employed in violation of law; 3. bodily injury to an employee while employed in violation of law with your actual knowledge or the actual knowledge of any of your executive officers; 4. any obligation imposed by a workers compensa- tion, occupational disease, unemployment com- pensation, or disability benefits law, or any similar law; 5. bodily injury intentionally caused or aggravated by you; 6. bodily injury occurring outside the United States of America, its territories or possessions, and Canada. This exclusion does not apply to bodily injury to a citizen or resident of the United States of America or Canada who is temporarily outside these countries; 7. damages arising out of coercion, criticism, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation, discrimi- nation against or termination of any employee, or any personnel practices, policies, acts or omissions. 8. bodily injury to any person in work subject to the Longshore and Harbor Workers' Compen- sation Act (33 USC Sections 901-950), the Nonappropriated Fund Instrumentalities Act (5 USC Sections 8171-8173), the Outer Conti- nental Shelf Lands Act (43 USC Sections 1331- 1356), the Defense Base Act (42 USC Sections 1651-1654), the Federal Coal Mine Health and Safety Act of 1969 (30 USC Sections 901-942), any other federal workers or workmen's com- pensation law or other federal occupational disease law, or any amendments to these laws. Page 2 of 5 9. bodily injury to any person in work subject to the Federal Employers' Liability Act (45 USC Sections 51-60), any other federal laws obligat- ing an employer to pay damages to an employee due to bodily injury arising out of or in the course of employment, or any amendments to those laws. 10_ bodily injury to a master or member of the crew of any vessel. 11. fines or penalties imposed for violation of fed- eral or state law. 12. damages payable under the Migrant and Sea- sonal Agricultural Worker Protection Act (29 USC Sections 1801-1872) and under any other federal law awarding damages for violation of those laws or regulations issued thereunder, and any amendments to those laws. D. We Will Defend We have the right and duty to defend, at our ex- pense, any claim, proceeding or suit against you for damages payable by this insurance. We have the right to investigate and settle these claims, proceed- ings and suits. We have no duty to defend a claim, proceeding or suit that is not covered by this insurance. We have no duty to defend or continue defending after we have paid our applicable limit of liability under this insurance. E. We Will Also Pay We will also pay these costs, in addition to other amounts payable under this insurance, as part of any claim, proceeding or suit we defend: I. reasonable expenses incurred at our request, but not loss of earnings; 2. premiums for bonds to release attachments and for appeal bonds in bond amounts up to the limit of our liability under this insurance; 3. litigation costs taxed against you; 4. interest on a judgement as required bylaw until we offer the amount due under this insurance; and 5. expenses we incur. Other Insurance We will not pay more than our share of damages and costs covered by this insurance and other insurance or self-insurance. Subject to any limits of liability that apply, all shares will be equal until the loss is paid. If any insurance or self-insurance is ex- hausted, the shares of all remaining insurance and self-insurance will be equal until the loss is paid. G. Limits of Liability Our liability to pay for damages is limited. Our limits of liability are shown in Item 3.B. of the Information Page. 'they apply as explained below: L Bodily Injury by Accident. The limit shown for "bodily injury by accident-each accident" is the most we will pay for all damages covered by this insurance because of bodily injury to one or more employees in any one accident. A disease is not bodily injury by accident unless it results directly from bodily injury by acci- dent. 2. Bodily Injury by Disease. The limit shown for "bodily injury by disease-policy limit" is the most we will pay for all damages covered by this insurance and arising out of bodily injury by disease, regardless of the number of employees who sustain bodily injury by disease. The limit shown for "bodily injury by disease-each em- ployee" is the most we will pay for all damages because of bodily injury by disease to any one employee. Bodily injury by disease does not include dis- ease that results directly from a bodily injury by accident. 3. We will not pay any claims for damages after we have paid the applicable limit of our liability under this insurance. H. Recovery From Others We have your rights to recover our payment from anyone liable for an injury covered by this insur- ance. You will do everything necessary to protect those rights for us and to help us enforce them. Actions Against Us There will be no right of action against us under this insurance unless: 1. You have complied with all the terms of this policy; and 2. The amount you owe has been determined with our consent or by actual trial and final judge- ment. This insurance does not give anyone the right to add us as a defendant in an action against you to determine your liability. The bankruptcy or insol- vency of you or your estate will not relieve us of our obligations under this Part. PART THREE - OTHER STATES INSURANCE A. How This Insurance Applies we are not permitted to pay the benefits direct- 1. This other states insurance applies only if one ly to persons entitled to them. or more states are shown in Item 3.C. of the 4. If you have work on the effective date of this Information Page. policy in any state not listed in Item 3.A. of the 2. If you begin work in any one of those states Information Page, coverage will not be afford- after the effective date of this policy and are ed for that state unless we are notified within not insured or are not self-insured for such thirty days. work, all provisions of the policy will apply as B. Notice though that state were listed in Item 3.A. of the Information Page. Tell us at once if you begin work in any state listed in Item 3_C. of the Information Page. 3. We will reimburse you for the benefits required by the workers compensation law of that state if Page 3 of 5 PART FOUR-YOUR DUTIES IF INJURY OCCURS Tell us at once if injury occurs that may be covered by this policy. Your other duties are listed here. 1. Provide for immediate medical and other services required by the workers compensation law. 2. Give us or our agent the names and addresses of the injured persons and of witnesses, and other infor- mation we may need. 3. Promptly give us all notices, demands and legal papers related to the injury, claim, proceeding or suit. 4. Cooperate with us and assist us, as we may request, in the investigation, settlement or defense of any claim, proceeding or suit. 5. Do nothing after an injury occurs that would inter- fere with our right to recover from others. 6_ Do not voluntarily make payments, assume obliga- tions or incur expenses, except at your own cost. PART FIVE -PREMIUM A. Our Manuals All premium for this policy will be determined by our manuals of rules, rates, rating plans and classi- fications. We may change our manuals and apply the changes to this policy if authorized by law or a governmental agency regulating this insurance. B. Classifications Item 4 of the Information Page shows the rate and premium basis for certain business or work classi- fications. These classifications were assigned based on an estimate of the exposures you would have during the policy period. If your actual exposures are not properly described by those classifications, we will assign proper classifications, rates and pre- mium basis by endorsement to this policy. C. Remuneration D. E. Premium for each work classification is determined by multiplying a rate times a premium basis. Re- muneration is the most common premium basis. This premium basis includes payroll and all other remuneration paid or payable during the policy period for the services of: 1. All your officers and employees engaged in work covered by this policy; and 2. All other persons engaged in work that could make us liable under Part One (Workers Com- pensation Insurance) of this policy. If you do not have payroll records for these persons, the contract price for their services and materials may be used as the premium basis. This para- graph 2 will not apply if you give us proof that the employers of these persons lawfully secured their workers compensation obligations. Premium Payments You will pay all premium when due. You will pay the premium even if part or all of a workers com- pensation law is not valid. Final Premium The premium shown on the Information Page, schedules, and endorsements is an estimate. The final premium will be determined after this policy ends by using the actual, not the estimated, pre- mium basis and the proper classifications and rates that lawfully apply to the business and work covered by this policy. If the final premium is more than the premium you paid to us, you must pay us the bal- ance. If it is less, we will refund the balance to you. The final premium will not be less than the highest minimum premium for the classifications covered by this policy. If this policy is canceled, final premium will be determined in the following way unless our manuals provide otherwise: 1. If we cancel, final premium will be calculated pro rata based on the time this policy was in force. Final premium will not be less than the pro rata share of? the minimum premium. 2. If you cancel, final premium will be more than pro rata; it will be based on the time this policy was in force, and increased by our short-rate cancellation table and procedure. Final pre- mium will not be less than the minimum pre- mium. F. Records You will keep records of information needed to compute premium. You will provide us with copies of those records when we ask for them. G. Audit You will let us examine and audit all your records that relate to this policy. These records include ledgers, journals, registers, vouchers, contracts, tax reports, payroll and disbursement records, and programs for storing and retrieving data. We may conduct the audits during regular business hours during the policy period and within three years after the policy period ends. Information developed by audit will be used to determine final premium. Insurance rate service organizations have the same rights we have under this provision. PART SIX -CONDITIONS A. Inspection We have the right, but are not obliged to inspect your workplaces at any time. Our inspections are not safety inspections. They relate only to the insur- ability of the workplaces and the premiums to be charged. We may give you reports on the conditions we find. We may also recommend changes. While they may help reduce losses, we do not undertake to perform the duty of any person to provide for the health or safety of your employees or the public. We do not warrant that your workplaces are safe or healthful or that they comply with laws, regulations, codes or standards. Insurance rate service organi- zations have the saute rights we have under this provision. Page 4 of 5 B. Long Term Policy If the policy period is longer than one year and six- teen days, all provisions of this policy will apply as though a new policy were issued on each annual anniversary that this policy is in force. C. Transfer of Your Rights and Duties Your rights or duties under this policy may not be transferred without our written consent. If you die and we receive notice within thirty days after your death, we will cover your legal repre- sentative as insured. D. Cancelation 1. You may cancel this policy. You must mail or deliver advance written notice to us stating when the cancellation is to take effect. 2. We may cancel this policy. We must mail or deliver to you riot less than ten days advance written notice stating when the cancellation is to take effect. Mailing that notice to you at your mailing address shown in Item 1 of the Infor- mation Page will be sufficient to prove notice. 3. The policy period will end on the day and hour stated in the cancellation notice. 4. Any of these provisions that conflict with a law that controls the cancellation of the insurance in this policy is changed by this statement to comply with the law. E. Sole Representative The insured first named in Item I of the Information Page well act on behalf of all insureds to change this policy, receive return premium, and give or receive notice of cancellation. In witness whereof, the company has caused this policy to be signed by its President and Secretary at Hartford, Connecticut and countersigned on the Information page by a duly authorized agent of the company. Secretary WC 00 00 00 (A) President CP-3349 Edition 2-92 Printed in U.S.A. (2-92) Page 5 of 5 TravelersPropertyCasualty I n?nr lersGmup WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC 99 04 08 (00) POLICYNUMBER: (IHUB-3795A53-6-02) PREMIUM DISCOUNT ENDORSEMENT The premium for the state and other states, if any, listed in item 3.A of the Information Page may be eligible for a discount. The final calculation of premium discount will be determined by our manuals and your premium as determined by audit. Premium subject to retrospective rating is not subject to premium discount. OTHER POLICIES: DATE OF ISSUE: 09-06-02 ST ASSIGN: TravelersPropertyCasualty I? nxmn..a ZYavelersGroup J WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC 37 03 10 ( B) POLICY NUMBER: (IHUB-3795A53-6-02) EXCLUSION OF EXECUTIVE OFFICERS ENDORSEMENT-PENNSYLVANIA The executive officers named in the schedule have exercised their right to waive workers compensation and employers liability benefits payable under this policy. The premium basis for this policy does not include the remuneration of such persons. The insurance carrier is entitled to reimbursement from the employer for any benefits paid under this policy for any of the persons listed in the schedule. Only officers with an ownership interest in a Subchapter S corporation or officers individually having at least a 5 percent ownership in a Subchapter C corporation or serve voluntarily and without remuneration in a non-profit corporation are eligible. SCHEDULE Type of % Social Office Optional Corporation Ownership Name of Officer Security # Held Signature ("S", °C" or "V") Interest WILLIAM GULA 000000000 OWNER C 100 Policy Number (IHUB-3795A53-6-02) Policy Effective Date 09-14-02 Policyholder Name WPG FASTENERS Carrier Name THE TRAVELERS INSURANCE COMPANIES DATE OF ISSUE: 09-06-02 ST ASSIGN: TravelersPropertyCasualty?? nwma?l5'aveleraGroup J WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC 37 06 01 (00) POLICYNUMBER: (IaoB-3795x53-6-02) SPECIAL PENNSYLVANIA ENDORSEMENT - INSPECTION OF MANUALS The manuals of rules, rating plans, and classifications are approved pursuant to the provisions of Section 654 of the Insurance Company Law of May 17, 1921, P.I. 682, as amended, and are on file with the Insurance Com- missioner of the Commonwealth of Pennsylvania. DATE OF ISSUE: 09-06-02 ST ASSIGN: TravelerspropertyCasualty A9111 I n amme2w Travelers Group WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC 37 06 02 (00) POLICYNUMBER: (rHUa-3795A53-6-02) NOTICE INSURANCE CONSULTATION SERVICES EXEMPTION ACT This notice is issued by that member of The Travelers Insurance Companies which issued your insurance policy and shall be attached to and become a part of your policy. This Notice is provided to you pursuant to the law of the Commonwealth of Pennsylvania effective January 1, 1981 and known as the "Insurance Consultation Services Exemption Act", which generally provides that "the furnishing of, or failure to furnish, insurance consultation services related to, in connection with or incidental to a policy of insurance shall not subject the insurer, its agents, employees or service contractors to liability for damages from injury, death or loss occurring as a result of any act or omission by any person in the course of such services." Such immunity does not apply: (1) where the injury occurred during the actual performance of consultation services and was caused by the negligence of the insurer; (11) with respect to consultation services performed pursuant to a written service contract not incidental to a policy of insurance; and (111) in any action against an insurer in which it is judicially determined that any act or omission resulting in damages constituted a crime, actual malice or gross negligence. The Travelers may make such inspection in accordance with provisions of our policies. DATE OF ISSUE: 09-06-02 ST ASSIGN: TravelersPropertyCasualtyAdlill II A e..m Rr IersGmup J WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC 37 06 03 (A) POLICY NUMBER: (IHUB-3795A53-6-02) PENNSYLVANIA ACT 86-1986 ENDORSEMENT NONRENEWAL, NOTICE OF INCREASE OF PREMIUM, and RETURN OF UNEARNED PREMIUM This endorsement applies only to the insurance provided by the policy because Pennsylvania is shown in Item 3.A. of the Information Page. The policy conditions are amended by adding the following regarding nonrenewal, notice of increase in premium, and return of unearned premium. Nonrenewal 1. We may elect not to renew the policy. We will mail to each named insured, by first class mail, not less than 60 days advance notice stating when the nonrenewal will take effect. Mailing that notice to you at your mailing address last known to us will be sufficient to prove notice. 2. Our notice of nonrenewal will state our specific reasons for not renewing. 3. If we have indicated our willingness to renew, we will not send you a notice of nonrenewal. However, the policy will still terminate on its expiration date if: a. you notify us or the agent or broker who procured this policy that you do not want the policy renewed; or b. you fail to pay all premiums when due; or c. you obtain other insurance as a replacement of the policy. Notice of Increase in Premium 1. We will provide you with not less than 30 days advance notice of an increase in renewal premium of this policy, if it is our intent to offer such renewal. 2. The above notification requirement will be satisfied if we have issued a renewal policy more than 30 days prior to its effective date. 3. If a policy has been written or is to be written on a retrospective rating plan basis, the notice of increase in premium provision of this endorsement does not apply. Return of Unearned Premium 1. If this policy is canceled and there is unearned premium due you: a. If the Company cancels, the unearned premium will be returned to you within 10 business days after the effective date of cancellation. b. If you cancel, the unearned premium will be returned within 30 days after the effective date of cancellation 2. Because this policy was written on the basis of an estimated premium and is subject to a premium audit, the unearned premium specified in 1a. and 1b. above, if any, shall be returned on an estimated basis. Upon our completion of computation of the exact premium, an additional return premium or charge will be made to you within 15 days of the final computation. 3. These return of unearned premium provisions shall not apply if this policy is written on a retrospective rating plan basis. DATE OF ISSUE: 09-06-02 ST ASSIGN: TravderspropertyCasualty AIIIIIIIIIII I A? of R IersGmup WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC 37 06 04 (00) POLICYNUMBER: (IHUB-3795A53-6-02) PENNSYLVANIA EMPLOYER ASSESSMENT ENDORSEMENT Act 57 of 1997 requires that "...the assessments for the maintenance of the Subsequent Injury Fund, the Workmen's Compensation Supersedes Fund and the Workmen's Compensation Administration Fund under sections 306.2, 443 and 446 of the act of June 2, 1915 (P.L. 736, No. 338), known as the "Workers' Compensation Act, shall be imposed, collected and remitted through insurers in accordance with regulations promulgated by the Department of Labor and. Industry". EMPLOYER ASSESSMENT FORMULA: Employer = Act 57 of 1997 Employer X Employer Assessment Assessment Assessment Factor Premium Base Act 57 of 1997 Employer Assessment Factor A factor expressed to four decimal places proposed by the Pennsylvania Compensation Rating Bureau and approved by the Pennsylvania Insurance Commissioner. Employer Assessment Premium Base Calculation of Employer Assessment Premium Base proceeds by adding back to the total policy premium the amount of any Small Deductible Premium Credit or Large Deductible Premium Credit. Code 0938 EMPLOYER ASSESSMENT FACTOR EMPLOYER ASSESSMENT See info page $ See info page DATE OF ISSUE: 09-06-02 ST ASSIGN: Page 1 of 1 TravelersPropertyCasualty I Pennsylvania Policyholders nwmeR?f Travelers Group WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY POLICY NUMBER: (IHUB-3795A53-6-02) NOTICE OF ELECTION TO ACCEPT AN INSURANCE DEDUCTIBLE KERS' COMPENSATION MEDICAL AND INDEMNITY BENEFITS FOR PENNSYLVANIA WOR Pennsylvania law now permits an employer to buy Workers' Compensation Insurance with a deductible. The deductible is for medical and indemnity benefits and applies separately to each bodily injury by accident or disease during the policy term, regardless of the number of employees who sustain injury in the accident. The deductible amount is subject to a minimum of $1,000 and a maximum of $10,000 per claim, with intermediate increments shown in the table below. To prevent putting you in an uninsured position, your policy has been issued at full rates with no deductible for medical benefits. If you wish to have this deductible option apply to your policy, fill in the information requested at the bottom of this form. Retain your copy for your records and send the agent and company copies to your agent within sixty (60) days after the effective date of your policy. An endorsement (WC 37 04 03 (00)) will then be attached to your policy to reflect the change. The applicable premium reduction percentage is that percentage corresponding to the appropriate hazard group indicated below. (Item #1) If you decide that you do not want a deductible to apply, or if you already have a deductible on the policy, you may disregard this form. Your policy will continue in force as issued. For a complete explanation of how this program operates or the savings available by choosing this option, please contact your producer. Item #1: HAZARD GROUP: Item #2: DEDUCTIBLE PER ACCIDENT $ 1,000 per claim 5,000 per claim 10,000 per claim PERCENT PREMIUM REDUCTION HAZARD GROUPS I II III IV 8.3% 7.80% 4.3% 2.5% 23.6 22.5 16.7 13.7 32.8 30.5 23.0 18.2 Yes, I want a deductible of $ applied to my medical and indemnity benefits under the Pennsylvania Workers' Compensation Law. I understand that the company shall pay the deductible amount and seek reimbursement from the employer shown below. DATE OF ISSUE: 09-06-02 W37N1C01 Page 1 of 2 I understand that in accordance with Pennsylvania revised statutes, I have the option of modifying the above deductible program choice at the time of renewal of my Workers' Compensation policy with the insurance company named below. Date: Insurance Company: Producer's Name: Policy Number: Employer: Name: Title: Signature: W37N1C01 Page 2 of 2 WORKERS' COMPENSATION TELEPHONE REPORTING 1-800-238-6225 TO REPORT A WORKERS' COMPENSATION CLAIM When an employee is injured, the most important thing is to secure appropriate medical treatment. Once this has been done, report the claim by calling the 1-800 number. Suggested Steps: 1. Gather the facts. Use the GUIDE FOR REPORTING WORKERS' COMPENSATION CLAIMS as a reference. It is not necessary to write answers to questions you know, it is a tool to help reduce the amount of time you are on the telephone. Remember, the objective is to report the claim quickly. We need the employee's name, social security number and a description of the accident. Try to gather as much information as possible, but don't worry if you do not have the answers to each and every question. 2. Call the Customer Service Unit. We have a single telephone number and the call will automatically be routed to the proper regional Customer Service Unit. You will be greeted on the telephone by a Customer Service Representative, who will complete the state specific notice of injury on the system by asking you the necessary questions. The order of the questions will be the same every time you call. The questions are grouped into three sections: • General Questions This section contains questions specific to you, your employee and the accident. Once you have reported a claim, the system will pre- fill your employer specific information, such as your policy number on all future claims. • State Specific Questions If the jurisdiction requires data not covered in the general section, it will be covered here. • Additional Comments and Information If you would like to provide additional information not covered else- where, the Customer Service Representative will be able to record this in a free form area. 3. Let Your Employee Know. Before you hang up, the Customer Service Representative will give you a claim number. Referencing the claim number will help expedite the handling of the rest of the claim. Please include the claim number with all future correspondence, such as wage statements or medical bills. Please be sure to give this number to your employee. WUNC4C01 If An Employee Is Injured At Work Prompt reporting of work-related injuries and illnesses and the use of Medical Network Providers contracted for Travelers nationwide can lower Workers Compensation claim costs! Whenever an Employee suffers a work-related injury or illness, the Employer should: 1. Seek appropriate medical care for the Employee. 2. If the injury or illness is acute, the Employer should always send the Employee to the nearest hospital emergency department. 3. If the injury or illness is not acute, the Employer may suggest that the Employee seek treatment from the nearest Medical Network Provider. Medical Network Providers understand work-related illnesses and injuries, are credentialed to help assure quality care, and cooperate to achieve a medically appropriate return to work for the Employee. Medical Network Providers (hospitals, initial care clinics, specialists, testing, therapy, etc.) are available in all 50 States and the District of Columbia. Even before an illness or injury occurs, it may be helpful for the Employer to build a relationship with a convenient Medical Network Clinic or Hospital that will provide initial treatment for ill or injured Employees. 4. The Employee's Supervisor should gather pertinent facts about the work-related illness or injury and may use the Worksheet For Workers' Compensation Telephone Reporting provided by Travelers as a guide. 5. As soon as possible, the Employer should report all work-related illnesses or injuries to Travelers by dialing our toll free number, 1-800-832-7839. If needed at that time, Travelers Customer Service Representative can provide the name of a convenient Medical Network Provider. Prompt reporting of work-related illnesses and injuries is key in helping to reduce claim costs. At the conclusion of the phone call, the Travelers Customer Service Representative will provide a claim number that should be retained for the Employer's reference and also provided to the ill or injured Employee. The card below contains information that may be helpful in reporting work-related illnesses and injuries to Travelers and should be kept in a convenient location for use by the Employer when needed. WC Claim Reporting • Please report work-related injuries promptly to Travelers: 1-800-832-7839. • Learn about all of Travelers' Claim Services (including Medical Network Providers) on Travelers website. Log on to www.travelers.com. • To get to Claim Services on Travelers' website, select Business Insurance from the home page. Then choose Workers' Compensation & Managed Care Claim Management from the menu of services in the left margin. Finally, click on Preferred Provider Network to search for a Medical Network Provider nearyou. WUNC51302 Page 1 of 1 IMPORTANT Policy Audit Information Dear Policyholder: This policy is issued with an estimated premium based upon information provided through your Producer. This premium is subject to adjustment at the end of the policy period. At that time, you may receive a request for information in the mail or a premium auditor may contact you to review the necessary records. The information developed is needed to determine the final earned premium for this policy. Record Maintenance In order to facilitate audit service, it is necessary to maintain proper records and have them available at the proper time. Based on the nature of your business, some of the following data will be necessary to complete the audit: 1. General Ledger, Financial Statements 2. Payroll Records, Time Books, State Unemployment Returns, FICA Returns, Individual Earnings Records-Monthly totals separated by type of work and overtime. 3. Cash Receipts, Sales Journal 4. Cash Disbursements Journal - Including subcontractors. casual labor and material costs. 5. Certificates of Insurance IMPORTANT COVERAGE NOTE: If you utilize subcontractors whose legal status is that of sole proprietor/partner, we may charge premium for these persons as provided under Part 5 of the policy contract even though certificates of insurance may exist. Please contact your producer if you have any questions regarding your Workers' Compensation coverage needs. Work in Other States Please advise your Producer if employees are hired for work in states other than those listed in Item 3. of your policy. This will enable your producer to consider your need for coverage in accordance with state laws. We appreciate the opportunity to serve you. If you have any questions about the enclosed policy or any insurance matters please contact your producer or your Company representative. WUNN7FO0 Commonwealth Of Pennsylvania Important Loss Control Information The Travelers Indemnity Company and any of its property-casualty insurance subsidiar- ies and affiliates who may issue insurance policy(ies) to policyholder(s) in the Common- wealth of Pennsylvania is required by law to provide its policyholders with certain accident prevention services as required by Pennsylvania Workers' Compensation Act, Article X, Health and Safety, Sec 1001 (d). If you would like more information after read- ing the attached Safety Services notice, call or write the closest Loss Prevention & Engi- neering office listed in Safety Services notice. W37N2C01 PENNSYLVANIA RIGHTS AND DUTIES The employer shall provide payment in accordance with the Workers' Compensation Act for reasonable, surgical and medical services, services rendered by physicians or other health care providers, medicines and supplies, as and when needed, including an additional opinion when invasive surgery may be necessary, attributable to the work-related injury. 2. When an employer establishes a medical panel, it must have at least six designated health care providers, no more than four of whom may be a coordinated care organization and no fewer than three of whom shall be physicians. The employer shall not include on this list a physician or health care provider who is employed, owned or controlled by the employer or the employer's insurer unless employment, ownership or control is disclosed on the list. Should invasive surgery for an employee be prescribed by a physician or other health care provider so designated by the employer, the employee shall be permitted to receive an additional opinion from any health care provider of the employee's own choice. A. If the additional opinion differs from the opinion provided by the physician or health care provider so designated by the employer, the employee shall determine which course of treatment to follow: provided, that the second opinion provides a specific and detailed course of treatment. B. If the employee chooses to follow the procedures designated in the second opinion, such procedures shall be peformed by one of the physicians or other health care providers so designated by the employer for a period of ninety (90) days from the date of the visit to the physician or other health care provider of the employee's own choice. 4. You shall be required to visit one of the physicians or other health care providers so designated and shall continue to visit the same or another designated physician or health care provider for a period of ninety (90) days from the date of the first visit. Should you not comply with the foregoing, the employer will be relieved from liability for the payment for the services rendered during such applicable period. 6. It shall be the duty of the employer to provide a clearly written notification of your rights and duties under the Act to the employee. W37M2J96 Page 1 of2 The employer shall further insure that you have been informed and that you understand these rights and duties. 8. This duty shall be evidenced only by your written acknowledgement of having been informed and having understood your rights and duties. 9. Any failure of the employer to provide and evidence such notification shall relieve you from any notification duty owed, notwithstanding any provision of the Act to the contrary, and the employer shall remain liable for all rendered treatment. 10. Subsequent treatment, after the ninety (90) day period, may be provided by any health care provider of your choice. 11. Following the termination of the ninety (90) day period, if you are provided treatment from a non-designated health care provider, you shall notify the employer within five (5) days of the first visit to said health care provider. 12. Failure to so notify the employer will relieve the employer from liability for the payment for the services rendered prior to appropriate notice if such services are determined to have been unreasonable or unnecessary. 13. In addition to the above service, the employer shall provide payment for medicines and supplies, hospital treatment, services and supplies and orthopedic appliances, and prostheses in accordance with the Act. EMPLOYEE DATE EMPLOYER WITNESS DATE THE ABOVE SIGNATURE ACKNOWLEDGES THAT I HAVE BEEN INFORMED AND UNDERSTAND MY RIGHTS AND DUTIES PERTAINING TO MEDICAL TREATMENT FOR WORK-RELATED INJURIES. Page 2 of 2 TravelersrropertyCasualty J I-G,,, PENNSYLVANIA POSTING NOTICE RIGHTS AND DUTIES Dear Policyholder: On August 23, 1996 the State of Pennsylvania enacted broadening legislative changes pertaining to the rights and duties of employers and employees which requires you, the employer, to inform your employees of their rights under the Workers' Compensation And Employers' Liability Act, as well as your responsibilities as an employer. With the enacted legislation two major changes affecting both employer and employees should be noted. 1. Gives the employee the option of having a second opinion paid by the employer, before undergoing invasive surgery; and 2 Employer-controlled medical treatment has been expanded from 30 days to 90 days. Enclosed is a new Posting Notice which must be posted in a conspicuous place where employees will readily see it. Also enclosed is a listing of physicians ("Pennsylvania Work- Related Injuries") which must be posted alongside the Posting Notice. It is your responsibility to complete this list of qualified physicians. Contact your Travelers claim representative or the nearest Travelers claim office for assistance in completing the list of physicians. Refer to the Posting Notice for the address of the nearest Travelers claim office. The law also requires you to see that the "Rights and Duties" form is provided to each employee AND signed by each employee, and that a record is maintained for future reference. It is your responsibility to photocopy the form and distribute it to each employee. If you fail to have this form distributed and signed by your employees, you may be liable for any treatment rendered for work-related injuries. With the legislative changes that have occurred it is necessary to update your records and have your employees sign the revised "Pennsylvania Rights and Duties" form. Your agent, producer, or local claim office can assist you to be in compliance with the Pennsylvania Workers' Compensation Law. W37M3J96 PENNSYLVANIA WORK-RELATED INJURIES If you suffer a work-related injury, your employer or its insurance company must pay for reasonable surgical and medical services and supplies, orthopedic appliances and prostheses, including training in their use. 2. In order to insure that your medical treatment will be paid for by your employer or the insurance company, you must select from one of the six designated health care providers listed below: NAME ADDRESS TELEPHONE AREA OF SPECIALTY (2) *(NOTE: If any of the health care providers listed above are employed, owned or controlled by the employer or the employer's carrier, it will be so designated by an asterisk next to the health care provider's name.) You must continue to visit one of these health care providers listed above, if you need treatment, for ninety (90) days from the date of your first visit. After this ninety (90) day period, if you still need treatment and your employer has provided a list as set forth above, you may choose to go to another health care provider. You MUST notify your employer of this action within five (5) days of your visit to the health care provider of your choice. Your bills will be considered IF: your health care provider files written reports on a form prescribed by the Department (these reports must be filed within ten (10) days of cormnencing treatment and at least once a month thereafter, as long as treatment continues). The employer shall not be liable to pay for such treatment until a report has been filed. 5. If one of the health care providers listed above refers you to another health care provider, your employer or its insurer will pay the bill for these services provided they are reasonable and necessary. 6. If you are faced with a medical emergency, you may secure assistance from a hospital or health care provider of your choice. 7. If you have any questions, contact: W37f2J96 BUSINESSOWNERS TravelersPropertyCasualty?j Awm aliawlersGroap J BUSINESSOWNERS One Tower Square, Hartford, Connecticut 06183 TravelersPropertyCasualty I A?4aTY IersCroup 0 COMMON POLICY DECLARATIONS WHOLESALERS PAC BUSINESS: WHOLESALERS 1. NAMED INSURED AND MAILING ADDRESS: WPG FASTENERS 3617 SI14PSON FERRY ROAD POLICY NO.: I-680-3793A531-TIL-02 ISSUE DATE: 09-24-02 CAMP HILL PA 17011 2. POLICY PERIOD: From 09-14-02 to 09-14-03 12:01 A.M. Standard Time at your mailing address. 3. LOCATIONS: PREM. NO. BLDG. NO. OCCUPANCY ADDRESS (same as Mailing Address unless specified otherwise) OL 01 WHOLESALERS 3617A SIMPSON FERRY ROAD CAMP HILL PA 17011 02 01 WHOLESALERS 3617B SIMPSON FERRY ROAD CAMP HILL PA 17011 4. COVERAGE PARTS AND SUPPLEMENTS FORMING PART OF THIS POLICY AND INSURING COMPANIES COVERAGE PARTS and SUPPLEMENTS INSURING COMPANY Businessowners Coverage Part TIL 5. The COMPLETE POLICY consists of this declarations and all other declarations„ and the forms and endorse- ments for which symbol numbers are attached on a separate listing. 6. SUPPLEMENTAL POLICIES: Each of the following is a separate policy containing its complete provisions. POLICY POLICY NUMBER INSURING COMPANY DIRECT BILL 7. PREMIUM SUMMARY: Provisional Premium Due at Inception Due at Each NAME AND ADDRESS OF AGENT OR BROKER ACORDIA NORTHEAST INC GA672 P O BOX 1220 MECHANICSBURG PA 17055 IL TO 19 08 01 (Page 1 of 01) Office: READING DOWN SUBJECT TO AUDIT $ 7,928.00 COUNTERSIGNED BY: Authorized Representative DATE: POLICY NUMBER: I-680-3793A531-TIL-02 EFFECTIVE DATE: 09-14-02 ISSUE DATE: 09-24-02 LISTING OF FORMS, ENDORSEMENTS AND SCHEDULE NUMBERS THIS LISTING SHOWS THE NUMBER OF FORMS, SCHEDULES AND BY LINE OF BUSINESS. IL TO 19 08 01 COMMON POLICY DEC IL T8 01 01 01 FORMS, ENDORSEMENTS AND SCHEDULE NUMBERS IL T3 15 12 94 COMMON POLICY CONDITIONS MP TO 01 09 98 BUSINESSOWNERS COVERAGE PART DEC MP T1 30 08 01 TBL OF CONT-BUSINESSOWNERS COV-DELUXE MP Tl 02 01 00 BUSINESSOWNERS PROPERTY COV-SPEC FORM MP T1 81 01 00 AMEND PROV WHOLESALERS-INCL BUSINESS INC MP T9 77 01 00 POWER-PAC PLUS ENDT-MFG/WHOLESALERS MP T4 66 01 00 PA CHANGES COMMERCIAL GENERAL LIABILITY CG TO 07 03 96 CG TO 34 10 93 CG 00 01 10 93 CG 00 57 09 99 CG D1 94 11 97 CG D2 34 02 01 CG 21 47 10 93 CG 21 61 04 98 CG D1 42 01 99 CG D1 92 08 97 CG D2 42 01 02 CG T3 23 09 96 CG T4 78 02 90 CG T3 33 12 88 DECLARATIONS PREMIUM SCHEDULE TABLE OF CONTENTS COMMERCIAL GENERAL LIABILITY COV FORM AMENDMENT OF INSURING AGRMNT-KNOWN INJ CHGS IN COMMERCIAL GENERAL LIAB COV FORM WEB XTEND - LIABILITY EMPLOYMENT-RELATED PRACTICES EXCLUSION EXCL-YR 2000 COMPUTER PROB-PROD/COMP OPR EXCLUSION-DISCRIMINATION AMEND POLL EXCL-EXCEPT BLDG HEAT EQUIP EXCLUSION WAR EXCL-AIRCRAFT PRODUCTS AND GROUNDING EXCLUSION-ASBESTOS LIMIT WHEN TWO OR MORE POLICIES APPLY INTERLINE ENDORSEMENTS IL 00 21 04 98 NUCLEAR ENERGY LIABILITY EXCLUSION IL 01 66 01 99 PENNSYLVANIA CHANGES-ACTUAL CASH VALUE IL 01 72 11 93 PENNSYLVANIA CHANGES IL 02 46 04 98 PA CHANGES-CANCELLATION & NONRENEWAL IL 09 10 07 02 PENNSYLVANIA NOTICE IL T3 53 04 98 EXCL CERTAIN COMPUTER-RELATED LOSSES IL T8 01 01 01 PAGE: 1 OF 1 COMMON POLICY CONDITIONS All Coverage Parts included in this policy are subject to the following conditions: A. CANCELLATION C. EXAMINATION OF YOUR BOOKS AND RE- 1. The first Named Insured shown in the Decla- CORDS rations may cancel this policy by mailing or We may examine and audit your books and delivering to us advance written notice of records as they relate to this policy at any time cancellation. during the policy period and up to three years 2. We may cancel this policy or any Coverage afterward. Part by mailing or delivering to the first D. INSPECTIONS AND SURVEYS Named Insured written notice of cancellation We have the right but are not obligated to: at least: 1. Make inspections and surveys at any time; a. 10 days before the effective date of can- cellation if we cancel for nonpayment of 2. Give you reports on the conditions we find; premium: or and b. 30 days before the effective date of can- 3. Recommend changes. cellation if we cancel for any other Any inspection, surveys, reports or recommen- reason, dations relate only to insurability and the 3. We will mail or deliver our notice to the first premiums to be charged. We do not make Named Insured's last mailing address known safety inspections. We do not undertake to per- to us. form the duty of any person or organization to provide for the health or safety of workers or the 4. Notice of cancellation will state the effective public. And we do not warrant that conditions: date of cancellation. If the policy is can- celled, that date will become the end of the 1. Are safe or healthful: or policy period. If a Coverage Part is can- 2. Comply with laws, regulations, codes or celled, that date will become the end of the standards. policy period as respects that Coverage Part This condition applies not only to us, but also to only. any rating, advisory, rate service or similar or- 5. If this policy or any Coverage Part is can- ganization which makes insurance inspections, celled, we will send the first Named Insured surveys, reports or recommendations. any premium refund due. If we cancel, the E. PREMIUMS refund will be pro rata. If the first Named Insured cancels, the refund may be less than 1. The first Named Insured shown in the Decla- pro rata. The cancellation will be effective rations: even if we have not made or offered a refund. a. Is responsible for the payment of all 6. If notice is mailed, proof of mailing will be premiums: and sufficient proof of notice. b. Will be the payee for any return pre- B. CHANGES miums we pay. This policy contains all the agreements between 2. We compute all premiums for this policy in you and us concerning the insurance afforded. accordance with our rules, rates, rating The first Named Insured shown in the Declara- plans, premiums and minimum premiums. tions is authorized to make changes in the terms The premium shown in the Declarations was of this policy with our consent. This policy's computed based on rates and rules in effect terms can be amended or waived only by endor- at the time the policy was issued. On each sement issued by us as part of this policy. renewal, continuation or anniversary of the effective date of this policy, we will compute the premium in accordance with our rates and rules then in effect. IL T3 15 12 94 Page 1 of 2 (Rev. 2-95) F. TRANSFER OF YOUR RIGHTS AND DUTIES UNDER THIS POLICY Your rights and duties under this policy may not be transferred without our written consent except in the case of death of an individual named in- sured. If you die, your rights and duties will be trans- ferred to your legal representative but only while acting within the scope of duties as your legal representative. 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. G. BUSINESSOWNERS COVERAGE PART -REF- ERENCES TO FORMS AND ENDORSE- MENTS In some instances, the Common Policy Dec- larations may list endorsements included in the Businessowners Coverage Part that reference: 1. The Commercial Property Coverage Part; 2. The Commercial General Liability or Liquor Liability Coverage Part; or 3. Standard Property forms including, but not limited to, the following: a. Building and Personal Property Cov- erage Form; b. Business Income Coverage Form; c. Commercial Property Conditions; d. Condominium Association Coverage Form; e. Condominium Commercial Unit-Owners Coverage Form; f. Causes of Loss Basic Form; The Travelers Indemnity Company (IND). The Phoenix Insurance Company (PHX) The Charter Oak Fire Insurance Company (COF) The Travelers Indemnity Company of Illinois (TIL) The Travelers Indemnity Company of Connecticut (TCT) The Travelers Indemnity Company of America (TIA) The Travelers Insurance Company (Ins) g. Causes of Loss Special Form; and h. Causes of Loss Earthquake Form. Endorsements referencing the Commer- cial Property Coverage Part or the Stand- ard Property Forms referenced above apply to the Businessowners Property Coverage Form (Standard or Special ver- sion) in the same manner as they apply to the forms they reference. Endorsements referencing the Commer- cial General Liability Coverage Part apply to the Commercial General Liability Coverage Form (included in the Busines- sowners Coverage Part) in the same manner as they apply to the form they reference. H. INSURANCE UNDER TWO OR MORE COV- ERAGE PARTS If two or more of this policy's Coverage Parts apply to the same loss or damage, we will not pay more than the actual amount of the loss or damage. 1. INSURING COMPANIES In return for payment of the premium, The Travelers agrees with the Named Insured to pro- vide the insurance afforded by a Coverage Part forming part of this policy. That insurance will be provided by the company indicated as insuring company in the Common Policy Declarations by the abbreviation of its name opposite that Coverage Part. The companies listed below (each a stock com- pany) have executed this policy, but it is valid only if countersigned on the Common Policy Declarations by our authorized representative. `Formerly known as The Travelers Indemnity Company of Rhode Island (TRI) Secretary tff? Page 2 of 2 IL T3 15 12 94 (Rev. 2-95) One Tower Square, Hartford, Connecticut 06183 AO%k TravelersPropertyCasualty I Amm a7YavdersCroap J BUSINESSOWNERS COVERAGE PART DECLARATIONS WHOLESALERS PAC DELUXE PLAN POLICY NO.: I-680-3793A531-TIL-02 ISSUE DATE: 09-24-02 DECLARATIONS PERIOD: From 09-14-02 to 09-14-03 12:01 A.M. Standard Time at your mailing address. FORM OF BUSINESS: CORPORATION COVERAGES AND LIMITS OF INSURANCE: Insurance applies only to an item for which a "limit" or the word "INCLUDED" is shown. BUSINESSOWNERS PROPERTY COVERAGE: BUILDINGS: Limit of Insurance: Loss Adjustment Basis: Inflation Guard: Exterior Building Glass Deductible: PREM. BLDG. PREM. BLDG. NO. NO. NO. NO. 01 01 02 01 $ 81,250 $ $ 250 $ BUSINESS PERSONAL PROPERTY: Limit of Insurance: Loss Adjustment Basis: Inflation Guard: Exterior Building Glass: Exterior Building Glass Deductible: $ 481,250 $ 1,250,000 INCL $ INCL $ BUSINESS INCOME: Limit-Actual loss up to 12 Consecutive Months subject to a maximum limit of $ 2,500,000 DEDUCTIBLE AMOUNT: Businessowners Property Coverage: $ 500 Per Occurrence. COMMERCIAL GENERAL LIABILITY COVERAGE- OCCURRENCE FORM LIMITS OF INSURANCE General Aggregate (except Products-Completed Operations) Limit $ 2,000,000 Products-Completed Operations Aggregate Limit $ 2,000,000 Personal and Advertising Injury Limit $ 1,000,000 Each Occurrence Limit $ 1,000,000 Fire Damage Limit (any one fire) $ 300,000 Medical Payments Limit (any one person) $ 5,000 MORTGAGE HOLDER-BUILDING COVERAGE ONLY: SPECIAL PROVISIONS: COMMERCIAL GENERAL LIABILITY COVERAGE IS SUBJECT TO A GENERAL AGGREGATE LIMIT MP TO 01 09 98 (Page 1 of 01) TABLE OF CONTENTS BUSINESSOWNERS COVERAGE PART DELUXE PLAN The following indicates the contents of the principal forms which may be attached to your policy. It contains no reference to the Declarations or Endorsements which also may be attached. BUSINESSOWNERS PROPERTY COVERAGE SPECIAL FORM MP T1 02 COVERAGE - BUILDING, BUSINESS PERSONAL PROPERTY AND BUSINESS INCOME Covered Property,,,,,,,,,,,,,,, Property and Costs Not Business Income ................ Covered Causes of Loss Limitations ............................... Additional Coverages ...... Coverage Extensions ...... EXCLUSIONS Beginning on Page 1 2 2 3 3 4 11 14 LIMITS OF INSURANCE ................................................................................................................................................................ 18 Inflation Guard ........... ..................................:..:............................................ Business Personal Property Limit - Seasonal Increase DEDUCTIBLES 18 19 19 PROPERTY LOSS CONDITIONS ........................................................................................................................................... 19 COMMERCIAL PROPERTY CONDITIONS ........................................................................................ .. 24 ......................... Concealment, Misrepresentation or Fraud ............. Control of Property ................................................................. Insurance Under Two or More Coverages ............... Legal Action Against Us ....................................................... Liberalization ................................................................................ No Benefit to Bailee ................................................................ Other Insurance ....................................:..................................... Policy Period, Coverage Territory ................................... Transfer of Rights of Recovery Against Others to Coinsurance .......................................: Mortgageholders ..................................................................... PROPERTY DEFIN .................. 24 ................... 24 .................. 24 ................. 24 ................. 24 ................ 24 .............. 24 ................ 24 ................. 24 ................ 25 ................... 25 26 MP T1 30 08 01 Page 1 of 1 BUSINESSOWNERS BUSINESSOWNERS PROPERTY COVERAGE SPECIAL FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "our" refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION G - PROP- ERTY DEFINITIONS. A. COVERAGE - BUILDING, BUSINESS PER- SONAL PROPERTY AND BUSINESS INCOME 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 a Covered Cause of Loss. We will pay for the actual loss of Business In- come you sustain due to the necessary "suspen- sion" of your "operations" during the "period of restoration". The "suspension" must be caused by direct physical loss of or damage to property at the described premises. With respect to loss of or damage to personal property in the open or per- sonal property in a vehicle, the described prem- ises include the area within 1,000 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 the portion of the building which you rent, lease or occupy and any area within the building or on the site at which the described premises are located, if that area serv- ices, or is used to gain access to, the described premises. 1. Covered Property Covered Property, as used in this Coverage Form, means the type of property described in this section, A.1., and limited in A.2., Prop- erty and Costs Not Covered, if a Limit of In- surance is shown in the Declarations for that type of property. a. Building, meaning the building or struc- ture described in the Declarations, in- cluding: (1) Completed additions; (2) Fixtures, including outdoor fixtures; (3) Permanently attached: (a) Machinery; and (b) Equipment; (4) Personal property owned by you that is used to maintain or service the building or structure or the premises, including: (a) Fire extinguishing equipment; (b) Outdoor furniture; (c) Floor coverings; (d) Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering; (e) Lawn maintenance and snow re- moval equipment; and (f) Alarm systems; (5) If not covered by other insurance: (a) Alterations and repairs to the building or structure; (b) Materials, equipment; supplies and temporary structures, on or within 1,000 feet of the described premises, used for making al- terations or repairs to the building or structure. b. Business Personal Property located in or on the buildings described in the Dec- larations or in the open (or in a vehicle) within 1,000 feet of the described prem- ises, including: (1) Property owned by you and used in your business; (2) Property of others that is in your care, custody or control; (3) Your use interest as tenant in im- provements and betterments. Im- provements and betterments are fix- MP T1 02 01 00 Page 1 of 28 BUSINESSOWNERS tures, alterations, installations or ad- ditions: (a) Made a part of the building or structure you occupy or lease but do not own; and (b) You acquired or made at your expense but are not permitted to remove; (4) "Money" and "Securities". 2. Property and Costs Not Covered Unless the following is added by endorse- ment to this policy, Covered Property does not include: a. Aircraft; b. (1) Automobiles held for sale; (2) Vehicles or self-propelled machines that are: (a) Required to be licensed if used on public roads; or (b) Operated principally away from the described premises; This paragraph does not apply to: (a) Vehicles or self-propelled ma- chines or autos you manufacture, process or warehouse; (b) Vehicles or self-propelled ma- chines, other than autos, you hold for sale; or (c) Trailers, but only to the extent provided for in the Coverage Ex- tension for Non-Owned Detached Trailers. c. Bulkheads, piers, pilings, wharves or docks; h. The following property while outside of d. Dams and dikes; e. Contraband, or property in the course of illegal transportation or trade; f. The cost of excavating, grading, backfill- ing or filling (except those costs made necessary due to repair of buildings in- sured under this policy from a Covered Cause of Loss), reclaiming or restoring land or water; Water or land whether in its natural state g. or otherwise (including land on which the property is located), growing crops or standing timber; buildings: (1) Bridges, walks, roadways, patios or other paved surfaces; (2) Retaining walls not part of the build- ing described in the Declarations; (3) Fences, trees, shrubs and plants (other than "stock" of trees, shrubs or plants), or lawns (including fairways, greens and tees); or (4) Outdoor radio or television antennas, (including satellite dishes) and in- cluding their lead-in wiring, masts or towers except as provided in the Outdoor Prop- erty Coverage Extension; I. Watercraft (including motors, equipment and accessories) while afloat; j. Accounts, bills, deeds, or evidences of debt; k. The cost to research, replace or restore the information on valuable papers and records, including those which exist on electronic or magnetic media, except as provided in the Valuable Papers Cover- age Extension; 1. Property that is covered under another coverage form or endorsement of this or any other policy in which it is more spe- cifically described, except for the excess of the amount due (whether you can col- lect on it or not) from that other insurance; m. Underground pipes, flues, drains or tun- nels, whether or not connected to build- ings; n. Collections whose value is based on an- tiquity or rarity; and o. Bullion, gold, silver, platinum and other precious alloys or metals, except if they are used in your "operations" (theft limita- tion applies). 3. Business Income a. Business Income means the: (1) Net Income (Net Profit or Loss before income taxes) that would have been earned or incurred; (2) Continuing normal operating ex- penses incurred, including payroll; (3) Includes "Rental Value"; and (4) Includes "Maintenance Fees" if you are a condominium association. Page 2 of 28 MP T1 02 01 00 BUSINESSOWNERS b. If the necessary "suspension" of your "operations" produces a Business Income loss payable under this policy, we will also pay for the actual loss of Business Income you sustain during the period that: (1) Begins on the date property is actu- ally repaired, rebuilt or replaced and "operations" are resumed; and (2) Ends on the earlier of: (a) The date you could restore your "operations" with reasonable speed, to the level which would generate the Business Income amount that would have existed if no direct physical loss or damage occurred; or (b) Sixty consecutive days after the date determined in b.(1) above. However, this extended Business Income does not apply to loss of Business In- come incurred as a result of unfavorable business conditions caused by the impact of the Covered Cause of Loss in the area where the described premises are lo- cated. Loss of Business Income must be caused by direct physical loss or damage at the described premises caused by or result- ing from a Covered Cause of Loss. c. We will only pay for loss of Business In- come that occurs within 12 consecutive months immediately following the date of direct physical loss or damage. 4. Covered Causes of Loss RISKS OF DIRECT PHYSICAL LOSS unless the loss is: a. Limited in Paragraph A.S., Limitations; or b. Excluded in Section B., Exclusions. 5. Limitations a. We will not pay for loss of or damage to (1) The "interior of any building or struc- ture" or to personal property in the building or structure, caused by rain, snow, sleet or ice whether driven by wind or not, unless: (a) The building or structure first sustains actual damage to the roof or walls by wind or hail and then we will pay only for the loss to the "interior of the building or structure" or the personal prop- erty in the building or structure that is caused by rain, snow, sleet, sand or dust entering the building(s) or structure(s) through openings in the roof or walls made by direct action of wind; or (b) The loss or damage is caused by or results from thawing of snow, sleet or ice on the building or structure. (2) Steam boilers, steam pipes, steam engines, or steam turbines caused by or resulting 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 passages through which the gases of combus- tion pass. (3) Hot water boilers or other water heating equipment caused by or re- sulting from any condition or event inside such boilers or equipment, other than explosion. b. We will not pay more than $500 in any one occurrence for loss of or damage to glass that is part of the building or struc- ture, regardless of the number of panes, plate or similar units of glass. Subject to this $500 limit on all loss or damage, we will not pay more than $100 for any one pane, plate, multiple plate insulating unit, radiant or solar heating panel, jalousie, louver or shutter. However, this limitation does not apply to loss or damage by the "specified causes of loss", except van- dalism. If you are a building owner and Exterior Building Glass is shown on the Declara- tions or a tenant who has purchased op- tional Exterior Building Glass, this limita- tion does not apply. c. 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: (1) Live animals or birds, and then only if they are killed or their destruction is made necessary. MP T1 02 01 00 Page 3 of 28 BUSINESSOW NERS (2) Fragile articles such as glassware, statuary, marbles, chinaware and porcelains, if broken. This limitation does not apply to: (a) Glass that is part of a building or structure; (b) Containers of property held for sale; or (c) Photographic or scientific instru- ment lenses. d. For loss or damage by "theft", the most we will pay in any one occurrence for the following types of property is: (1) $2,500 for all furs, fur garments and garments trimmed with fur. (2) $5,000 for all jewelry, watches, watch movements, jewels, pearls, precious and semi-precious stones, bullion, gold, silver, platinum and other pre- cious alloys or metals. This limit does not apply to jewelry and watches worth $100 or less per item. (3) $2,500 for all patterns, dies, molds and forms. e. We will not pay for any loss or damage caused by any of the following even if they are Covered Causes of Loss if the building where loss or damage occurs has been "vacant" for more than 60 con- secutive days before that loss or damage occurs: (1) Vandalism; (2) Sprinkler Leakage, unless you have protected the system against freez- ing; (3) Building glass breakage; (4) Water Damage; (5) Theft; or (6) Attempted theft. With respect to Covered Causes of Loss other than those listed in 5.e.(1) through 5.e.(6) above, we will reduce the amount we would otherwise pay for the loss or damage by 15%. f. We will not pay for any loss of Business Income caused by direct physical loss of or damage to Electronic Media and Rec- ords after the longer of: (1) 60 consecutive days from the date of direct physical loss or damage; or (2) The period, beginning with the date of direct physical loss or damage, nec- essary to repair, rebuild or replace with reasonable speed and similar quality, other property at the de- scribed premises which suffered loss or damage in the same occurrence. Electronic Media and Records are: (1) Electronic data processing, recording or storage media such as films, tapes, discs, drums or cells; (2) Data stored on such media; or (3) Programming records used for elec- tronic data processing or electroni- cally controlled equipment. Example No. 1: A Covered Cause of Loss damages a computer on June 1. It takes until Sep- tember 1 to repair and replace the prop- erty at the premises, and until October 1 to restore the computer 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 No. 2: A Covered Cause of Loss results in the loss of data processing programming re- cords on August 1. The records are re- placed on October 15. We will only pay for the Business Income loss sustained during the period August 1 - September 29 (60 consecutive days). Loss during the period September 30 - October 15 is not covered. 6. Additional Coverages Unless otherwise stated, payments made un- der the following Additional Coverages will not increase the applicable Limits of Insur- ance. a. Arson and Theft Reward We will pay a reward of 25% of an in- curred claim up to a maximum of $5,000 for information leading to: Page 4 of 28 MP T1 02 01 00 BUSINESSOWNERS (1) an arson conviction in connection to the Covered Property that has with a covered fire or explosion loss, sustained loss or damage. or (b) Subject to (a) above, the amount (2) a theft conviction in connection with a we will pay for debris removal covered theft loss. expense is limited to 25% of the This is the most we will pay for any one the deductible plus the sum of amount that pay for direct occurrence under this policy or any com- physical loss o or r damage to the bination of policies. Covered Property that has sus- The amount payable under this Additional tained loss or damage. Coverage is in addition to the Limits of In- (4) We will pay up to an additional surance. $25,00() for debris removal expense, b. Civil Authority for each location, in any one occur- We will pay for the actual loss of Busi- rence of physical loss or damage to ness Income you sustain and necessary Covered Property, if one or both of Extra Expense caused by action of civil the following circumstances apply: authority that prohibits access to the de- (a) The total of the actual debris re- scribed premises due to direct physical moval expense plus the amount loss of or damage to property within the we pay for direct physical loss or jurisdiction invoking the civil authority. damage exceeds the Limit of In- Such loss or damage must be caused by surance on the Covered Property or resulting from a Covered Cause of that has sustained loss or dam- Loss. age. This coverage will apply fora period of up (b) The actual debris removal ex- to two consecutive weeks from the date pense exceeds 25% of the sum of that action of civil authority. of the deductible plus the amount that we pay for direct physical c. Debris Removal loss or damage to the Covered (1) Subject to Paragraphs (3) and (4), we Property that has sustained loss will pay your necessary and reason- or damage. able expense to remove debris of Therefore, if (4)(a) and/or (4)(b) ap- Covered Property caused by or re- ply, our total payment for direct sulting from a Covered Cause of Loss physical loss or damage and debris that occurs during the policy period. removal expense may reach but will The expenses will be paid only if they never exceed the Limit of Insurance are reported to us in writing within on the Covered Property that has 180 days of the date of direct physi- sustained loss or damage, plus cal loss or damage. $25,000. (2) Debris Removal does not apply to (5) Examples costs to: The following examples assume that (a) Extract "pollutants" from land or coverage is not written on a coinsur- water; or ance basis. (b) Remove, restore or replace pol- Example; #1 luted land or water. Limit of Insurance $225,000 (3) Subject to the exceptions in Para- Amount of Deductible $500 graph (4), the following provisions apply: Amount of Loss $125,000 (a) The most we will pay for the total Amount of Loss Payable $124,500 of direct physical loss or damage ($125,000 - $500) plus debris removal expense is Debris Removal Expense $25,000 the Limit of Insurance applicable MP T1 02 01 00 Page 5 of 28 BUSINESSOW NERS Debris Removal Expense Payable $25,000 ($25,000 is 20% of $125,000) The debris removal expense is less than 25% of the sum of the loss pay- able and the debris removal expense ($124,500 + $25,000 = $149,500) is less than the Limit of Insurance. Therefore, the full amount of debris removal expense is payable in accor- dance with the terms of Paragraph (3). Example #2 Limit of Insurance $225,000 Amount of Deductible $500 Amount of Loss $200,000 Amount of Loss Payable $199,500 ($200,000 - $500) Debris Removal Expense $75,000 Debris Removal Expense Payable Basic Amount $25,500 Additional Amount $25,000 The basic amount payable for debris removal expense under the terms of Paragraph (3) is calculated as fol- lows: $200,000 ($199,500 + $500) x .25 = $50,000; capped at $25,500. The cap applies because the sum of the loss payable ($199,500) and the basic amount payable for debris removal expense ($25,500) cannot exceed the Limit of Insurance ($225,000). The additional amount payable for debris removal expense is provided in accordance with the terms of Paragraph (4), because the debris removal expense ($75,000) exceeds 25% of the loss payable plus the de- ductible ($75,000 is 37.5% of $200,000), and because the sum of the loss payable and debris removal expense ($199,500 + $75,000 = $274,500) would exceed the Limit of Insurance ($225,00). The additional amount of covered debris removal expense is $25,000, the maximum payable under Paragraph (4). Thus the total payable for debris removal expense in this example is $50,500; $24,500 is not covered. d. Employee Dishonesty (1) We will pay for loss of or damage to Business Personal Property resulting directly from "Employee Dishonesty" anywhere within the "coverage terd- tory" (2) The most we will pay for loss or dam- age in any one occurrence is the smallest of the following: (a) The limit for Business Personal Property stated in the Declara- tions (If more than one building containing Business Personal Property is insured, the limit at the building having the highest Business Personal Property limit will apply.); or (b) $250,000 (if the Business Per- sonal Property limit at any build- ing is greater than this amount). (3) Occurrence means all loss caused by or involving the same "employee(s)", whether the result of a single act or series of acts. (4) We will pay for loss or damage you sustain through acts committed or events occurring during the Policy Period. Regardless of the number of years this insurance remains in force or the number of premiums paid, no Limit of Insurance cumulates year to year or period to period. (5) We will not pay for loss resulting from the dishonest acts of any "employee": (a) If average for that "employee" was either cancelled or excluded from any previous insurance pol- icy of yours providing employee dishonesty coverage. (b) Occurring immediately after dis- covery by: I. 'You; or H. Any of your partners, officers or directors not in collusion with the "employee", of any fraudulent dishonest act committed by that "em- ployee" before or after being employed by you. Page 6 of 28 MP T1 02 01 00 BUSINESSOWNERS (c) Occurring after the effective date stated in our written notice to you that the "employee" is no longer covered. That effective date will not be less than 15 days after the date we mail the notice. rental of property or temporary replace- ment of damaged property. The most we will pay under this Addi- tional Coverage is $10,000 in any one occurrence. f. Extra Expense (6) We will pay for covered loss or dam- age only if discovered no later than one year from the end of the Policy Period. (7) If, during the period of any prior Em- ployee Dishonesty insurance, you (or any predecessor in interest) sus- tained loss or damage that you could have recovered under that insurance, except that the time within which to discover loss or damage has expired, we will pay for it under this Additional Coverage, subject to the following: (a) This insurance became effective at the time of cancellation or ter- mination of the prior insurance; and (b) The loss or damage would have been covered by this insurance had it been in effect when the acts or events causing the loss or damage were committed or oc- curred. (8) The insurance provided under para- graph (7) above is part of, not in ad- dition to the Limit of Insurance ap- plying to this Additional Coverage and is limited to the lesser of the amount recoverable under: (a) This Additional Coverage, as of its effective date; or (b) The prior Employee Dishonesty insurance, had it remained in ef- fect. e. Expediting Expenses In the event of covered loss or damage, we will pay for the reasonable and neces- sary additional expenses you incur to make temporary repairs, expedite perma- nent repairs, or expedite permanent re- placement at the premises sustaining loss or damage. Expediting expenses include overtime wages and the extra cost of ex- press or other rapid means of transporta- tion. Expediting expenses do not include expenses you incur for the temporary (1) We will pay the necessary and rea- sonable Extra Expenses you incur during the "period of restoration" that you would not have incurred if there had been no direct physical loss of or damage to property at the premises described in the Declarations. 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 per- sonal property in a vehicle, the de- scribed premises include the area within 1,000 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 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 ac- cess to, the described premises. (2) Extra Expense means expense in- curred: (a) To avoid or minimize the "sus- pension" of business and to con- tinue "operations": (i) At the described premises; or (i1) At replacement premises or at temporary locations, in- cluding relocating expenses, and costs to equip and oper- ate the replacement or tem- porary locations. (b) To minimize the "suspension" of business if you cannot continue "operations". (c) (i) To repair or replace any property; or MP T1 02 01 00 Page 7 of 28 BUSINESSOWNERS (ii) To research, replace or re- (b) $250,000 (if the Business Per- store the lost information on sonal Property limit at any one damaged valuable papers building is greater than this and records; amount). to the extent it reduces the (3) Occurrence means all loss caused by amount of loss that otherwise any person or in which that person is would have been payable under concerned or implicated, either re- Business Income. sulting from a single act or any num- We will only pay for Extra Expense that ber of such acts, whether the loss in- occurs within 12 consecutive months after volves one or more instruments. the date of direct physical loss or dam- (4) We will pay for loss that you sustain age. This Additional Coverage is not through acts committed or events oc- subject to the Limits of Insurance. curring during the Policy Period. Re- g. Fire Department Service Charge gardless of the number of years this When the fire department is called to insurance remains in force or the save or protect Covered Property from a number of premiums paid, no Limit of Covered Cause of Loss, we will pay up to Insurance cumulates from year to $1,000 for your liability for fire department year or period to period. service charges: (5) We will not pay for loss resulting from (1) Assumed by contract or agreement any dishonest or criminal acts com- prior to loss; or mitted by you or any of your partners, employees, directors or trustees (2) Required by local ordinance. whether acting alone or in collusion The amount payable under this Additional with other persons. Coverage is in addition to the Limits of In- (6) We will pay for covered loss discov- surance. ered no later than one year from the h. Forgery or Alteration end of the Policy Period. (1) We will pay for loss anywhere in the (7) If, during the period of any prior For- "coverage territory" resulting directly gery or Alteration insurance, you (or from "Forgery" or Alteration of, on, or any predecessor in interest) sus- in any check, draft, promissory note, tained loss or damage that you could bill of exchange, or similar written have recovered under that insurance, promise, order or direction to pay a except that the time within which to sum certain money, made or drawn discover loss or damage has expired, by or drawn upon you, or made or we will pay for it under this Additional drawn by one acting as an agent or Coverage provided: claiming to have been so made or (a) This insurance became effective drawn. at the time of cancellation or ter- (2) The most we will pay for loss or dam- mination of the prior insurance; age in any one occurrence, including and legal defense is the smallest of the (b) The loss or damage would have following: been covered by this insurance (a) The limit for Business Personal had it been in effect when the Property stated in the Declara- acts or events causing the loss or tions (If more than one building damage were committed or oc- containing Business Personal curred. Property is insured, the limit at (8) The insurance provided under para- the building having the highest graph (7) above is part of, not in ad- Business Personal Property limit dition to the Limit of Insurance ap- will apply.); or plying to this Additional Coverage Page 8 of 28 MP T1 02 01 00 BUSINESSOWNERS and is limited to the lesser of the law which requires any insured or amount recoverable under: others to test for, monitor, clean up, (a) This Additional Coverage up to remove, contain, treat, detoxify or the applicable Limit of Insurance neutralize, or in any way respond to, under this Coverage Form, as of or assess the effects of "pollutants". its effective date; or (6) The most we will pay under this Addi- (b) The prior Forgery or Alteration in- tional Coverage, for each described surance, had it remained in ef- building insured under this Coverage fect. Form, is $5,000. (9) If you are sued for refusing to pay The amount payable under this Addi- any covered instrument on the basis tional Coverage is additional insur- that it has been forged or altered, and ance. you have our written consent to de- (7) With respect to this Additional Cover- fend against the suit, we will pay for age: any reasonable legal expenses that you incur and pay in that defense. (a) We will not pay for the Increased The amount we will pay for these le- Cost of Construction: gal expenses will be part of and not in (i) Until the property is actually addition to the Limit of Insurance. repaired or replaced, at the i. Increased Cost of Construction same or another premises; and (1) This Additional Coverage applies only (ii) Unless the repairs or re- to buildings. placement are made as soon (2) In the event of damage by a Covered as reasonably possible after Cause of Loss to a building that is the loss or damage, not to Covered Property, we will pay the in- exceed two years. We may creased costs incurred to comply with extend this period in writing enforcement of an ordinance or law in during the two years. the course of repair, rebuilding or re- (b) If the building is repaired or re- placement of damaged parts of that placed at the same premises, or property, subject to the limitations if you elect to rebuild at another stated in i.(3) through i.(9) of this Ad- premises, the most we will pay ditional Coverage. for under this Additional Cover- (3) The ordinance or law referred to in age is the increased cost of con- i.(2) of this Additional Coverage is an struction at the same premises. ordinance or law that regulates the (c) If the ordinance or law requires construction or repair of building or relocation to another premises, establishes zoning or land use re- the most we will pay for under quirements at the described prem- this Additional Coverage is the ises, and is in force at the time of increased cost of construction at loss. the new premises. (4) Under this Additional Coverage, we (8) This Additional Coverage is not sub- will not pay any costs due to an ordi- ject to the terms of the Ordinance or nance or law that: Law Exclusion, to the extent that such Exclusion would conflict with the (a) You were required to comply with provisions of this Additional Cover- before the loss, even when the age. building was undamaged; and (b) You failed to comply with. (9) The costs addressed in the Loss Payment - Building and Personal (5) Under this Additional Coverage, we Property Property Loss Condition do will not pay any costs associated with not include the increased cost attrib- the enforcement of an ordinance or utable to enforcement of an ordi- MP T1 02 01 00 Page 9 of 28 BUSINESSOWNERS nance or law. The amount payable under this Additional Coverage, as stated in i.(6) of this Additional Cov- erage, is not subject to such limita- tion. Pollutant Cleanup and Removal We will pay your necessary and reason- able expense to extract "pollutants" from land or water at the described premises, if the discharge, dispersal, seepage, migra- tion, release or escape of the "pollutants" is caused by or results from a "specified cause of loss" which occurs: (1) On the described premises; (2) To Covered Property; and (3) During the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date on which the "specified cause of loss" occurs. This Additional Coverage does not apply to costs to test for, monitor or assess the existence, concentration or effects of "pollutants". But we will pay for testing which is performed in the course of ex- tracting the "pollutants" from the land or water. The most we will pay for loss at each de- scribed premises under this Additional Coverage is $10,000 in any one year commencing with policy inception. The amount payable under this Additional Coverage is in addition to the Limits of In- surance. k. Preservation of Property If it is necessary to move Covered Prop- erty from the described premises to pre- serve it from loss or damage by a Cov- ered Cause of Loss, we will pay for: (1) Any direct physical loss or damage to this property: (a) While it is being moved or while temporarily stored at another lo- cation; and (b) Only if the loss or damage occurs within 30 days after the property is first moved; and (2) The cost to remove and return the property from the described prem- ises. Coverage will end when any of the fol- lowing first occurs: (1) When the policy is amended to pro- vide insurance at the new location; (2) The property is returned to the origi- nal location; or (3) This policy expires. 1. Temporary Relocation of Property If Covered Property is removed from the described premises and stored temporar- ily at a location you own, lease or operate while the described premises is being renovated or remodeled, we will pay for loss or damage to that stored property: (1) Caused by or resulting from a Cov- ered Cause of Loss; (2) Up to $50,000 at each temporary lo- cation; and (3) During the storage period of up to 90 consecutive days but not beyond ex- piration of this policy; unless the stored property is more spe- cifically insured. m. Water Damage, Other Liquids, Powder or Molten Material If covered loss or damage caused by or resulting from water or other liquid, pow- der or molten material occurs, we will also pay the cost to tear out and replace any part of the building or structure to repair damage to the system or appliance from which the water or other substance es- capes. We will not pay the cost to repair any de- fect to a system or appliance from which the water, other liquid, powder or molten material escapes. 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 sub- stance from an automatic fire protec- tion system; or (2) Is directly caused by freezing. Page 10 of 28 MP T1 02 01 00 BUSINESSOWNERS 7. Coverage Extensions Subject to the Exclusions, Conditions and Limitations of this form, you may extend this insurance as indicated below. Unless otherwise stated, payments made un- der the following Coverage Extensions will not increase the applicable Limits of Insur- ance. a. Appurtenant Buildings and Structures You may extend the insurance that ap- plies to your Buildings and Business Per- sonal Property at the described premises, to cover direct loss in any one occurrence by a Covered Cause of Loss to incidental appurtenant buildings or structures, within 1,000 feet, including Business Personal Property within these buildings or struc- tures. Incidental appurtenant buildings or structures include but are not limited to storage buildings, garages, pump houses, above ground tanks, which have not been specifically described in the Declarations. The most we will pay for loss or damage under this Extension is 10% of the Limit of Insurance for Buildings and 10% of the Limit of Insurance for Business Personal Property shown in the Declarations but not more than $50,000 combined Building and Business Personal Property in any one occurrence. b. Business Income and Extra Expense - Newly Acquired Locations (1) Your Business Income and Extra Ex- pense Coverage is extended to apply to property at any location you ac- quire by purchase or lease (other than at fairs or exhibitions). (2) The most we will pay under this Ex- tension for the sum of Business In- come and Extra Expense incurred is $250,000 at each location. (3) Insurance under this extension for each newly acquired location will end when any of the following first occurs: (a) This policy expires; (b) 60 days expire after you acquire or begin to construct the property; (c) You report the location to us; (d) The Business Income or Extra Expense is more specifically in- sured. We will charge you additional pre- mium for locations reported from the date you acquire the property. c. Business Personal Property Off Premises (1) Your Business Personal Property in- surance is extended to apply to such property while it is in course of transit to and from the described premises or temporarily away from the de- scribed premises, if it is: (a) Temporarily at a location you do not own, lease or operate; or (b) At any fair, trade show or exhibi- tion at a premises you do not own or regularly occupy. (2) This Extension does not apply to property: (a) While in the custody of the United States Postal Service; (b) Rented or leased to others; (c) After delivery to customers; (d) In the care, custody or control of your salespersons, unless the property is. in such care, custody or control of a fair, trade show or exhibition; or (e) Temporarily at a premises for more than 60 consecutive days, except "money" and "securities" at a "banking premises". d. Claim Data Expense The insurance under this extension will be in addition to the applicable Limits of Insurance. The insurance provided by this Coverage Form is extended to apply to the reason- able expense you incur in preparing claim data when we require it. This includes the cost of taking inventories, making ap- praisals, preparing income statements, and preparing other documentation to show the extent of loss. The most we will pay for preparation of claim data under this Extension is $1,000. We will not pay for any expenses in- curred, directed or billed by or payable to claim adjusters or their associates or subsidiaries or any costs as provided by MP T1 02 01 00 Page 11 of 28 BUSINESSOWNERS in the Property Loss Condition - Ap- praisal. e. Exterior Building Glass (1) The insurance provided by this Cov- erage Form is extended to cover di- rect physical loss of or damage to glass, including glass breakage and damage to glass by chemicals acci- dentally or maliciously applied to glass: (a) If the Building described in the Declarations is insured under this policy; or (b) If only Business Personal Prop- erty is insured and coverage for glass is shown as included in the Declarations. This coverage applies to all glass in the exterior walls of a described building (including all lettering and ornamentation) and supersedes all limitations in this policy that apply to such exterior building glass. (2) We will also pay for necessary ex- penses incurred to: (a) Put up temporary plates or board up openings; (b) Repair or replace encasing frames; and (c) Remove or replace obstructions. (3) Section A.S.b. Limitations and Sec- tion B., Exclusions, do not apply to this Extension except for: (a) Governmental Action; (b) Nuclear Hazard; and (c) War and Military Action. (4) We will not pay for loss or damage caused by or resulting from: (a) Wear and tear; (b) Hidden or latent defect; (c) Corrosion; or (d) Rust. f. Money Orders and Counterfeit Paper Currency Your Business Personal Property is ex- tended to apply to loss due to the good faith acceptance of: (1) Any U.S. or Canadian post office or express money order, issued or claiming to have been issued by any post office or express company, if the money order is not paid upon pres- entation; or (2) Counterfeit United States or Cana- dian paper currency; in exchange for merchandise, "money" or services or as part of a normal business transaction. g. Newly Acquired or Constructed Prop- erty The insurance under this Extension will be in addition to the applicable Limits of Insurance. (1) Buildings Insurance applies to: (a) Your new buildings or additions while being built on the described premises or newly acquired premises, including materials, equipment, supplies and tempo- rary structures, on or within 1,000 feet of the premises; (b) Buildings you acquire at loca- tions, other than the described premises; and (c) Buildings you are required to in- sure under a written contract. The most we will pay for loss or dam- age under this Extension is $250,000 at each location. (2) Your Business Personal Property (a) When a Limit of Insurance is shown in the Declarations for Business Personal Property, you may extend that insurance to ap- ply to that type of property at a building you newly acquire: (i) at a location described in the Declarations; and (ii) at any other location you ac- quire by purchase of lease (other than at fairs, trade :shows or exhibitions). The most we will pay for loss or dam- age under this Extension is $250,000 Page 12 of 28 MP T1 02 01 00 BUSINESSOWNERS in total at each newly acquired prem- ises. (3) Period Of Coverage With respect to insurance on or at each newly acquired or constructed property, coverage will end when any of the following first occurs: (a) This policy expires; (b) 60 days expires after you acquire the property or begin construction of that part of the building that would qualify as covered prop- erty; or (c) You report values to us We will charge you additional pre- mium for values reported from the date you acquire the property or be- gin construction of that part of the building that would qualify as covered property. h. Non-Owned Detached Trailers (1) You may extend the insurance that applies to your Business Personal Property to apply to loss or damage to trailers that you do not own, pro- vided that: (a) The trailer is used in your busi- ness; (b) The trailer is in your care, cus- tody or control at the premises described in the Declarations; and (c) You have a contractual responsi- bility to pay for loss or damage to the trailer. (2) We will not pay for any loss or dam- age that occurs: (a) While the trailer is attached to any motor vehicle or motorized conveyance, whether or not the motor vehicle or motorized con- veyance is in motion; (b) During hitching or unhitching op- erations, or when a trailer be- comes accidentally unhitched from a motor vehicle or motorized conveyance. (3) The most we will pay for loss or dam- age under this Extension is $5,000. (4) This insurance is excess over the amount due (whether you can collect on it or not) from any other insurance covering such property. i. Outdoor Property The insurance under this Extension will be in addition to the applicable Limits of Insurance. The insurance provided by this Coverage Form is extended to apply to your outdoor property on the described premises as follows: (1) Fences, retaining walls not part of a building, lawns (including fairways, greens and tees), trees, shrubs and plants (other than "stock" of trees, shrubs, or plants), bridges, walks, roadways, patios or other paved sur- faces for loss or damage by the fol- lowing Causes of Loss: (a) Fire; (b) Lightning; (c) Explosion; (d) Riot or Civil Commotion; or (e) Aircraft. (2) Radio and television antennas (in- cluding Satellite dishes) for loss or damage by the Causes of Loss listed above and: (a) Windstorm; (b) Hail; (c) Falling Objects; (d) Vehicles; (e) Sinkhole Collapse; or (f) Volcanic Action The most we will pay for loss or damage under this Extension is $5,000 at each described premises, but not more than $1,000 for any antenna. j. Personal Property and Effects Your Business Personal Property insur- ance is extended to apply to personal property and effects (other than Business Personal Property) owned by you, your officers, your partners or members, your managers or your employees. Such property must be located on a premises described in the Declarations. MP T1 02 01 00 Page 13 of 28 BUSINESSOW NERS The most we will pay for loss or damage under this Extension is $5,000 at each described premises. Ilk. Signs Your Building or Business Personal Property insurance is extended to cover outdoor signs attached to the building or on or within 1,000 feet of the described premises. 1. Spoilage - Consequential Loss Your Business Personal Property Insur- ance is extended to cover consequential loss to your business personal property caused by change in temperature or hu- midity. However, the change must result from a Covered Cause of Loss damaging the following types of equipment situated within the building described in the Decla- rations: Refrigerating, cooling, humidifying, air- conditioning, heating, generating or con- verting power; and connections, supply or transmission lines and pipes associated with the above equipment. m. Theft Damage to Rented Property Your Business Personal Property insur- ance is extended to cover damage by theft or attempted theft to that part of a building you occupy and which contains: (1) Business Personal Property; or (2) Equipment within the building used for maintenance or service of the building. We will not pay for damage: (a) Caused by or resulting from fire or explosion; or (b) To glass or glass lettering. This Extension applies only to a building where you are a tenant and are liable for such damage. n. Valuable Papers and Records - Cost of Research The insurance under this extension will be in addition to the applicable Limits of Insurance. Your Business Personal Property insur- ance is extended to apply to your costs to research, replace or restore the lost in- formation on lost or damaged valuable papers and records, including those which exist on electronic or magnetic me- dia, for which duplicates do not exist. The most we will pay under this Extension is $1,000 at each described premises. B. EXCLUSIONS 1. We will not pay for loss or damage caused di- rectly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. a. Ordinance or Law The enforcement of any ordinance or law: (1) Regulating the construction, use or repair of any property; or (2) Requiring the tearing down of any building, including the cost of remov- ing its debris. This exclusion applies whether the loss results from: (a) An ordinance or law that is en- forced even if the property has not been damaged; or (b) The increased costs incurred to comply with an ordinance or law in the course of construction, re- pair, renovation, remodeling or demolition of property, or removal of its debris, following a physical loss to that property. b. Earth Movement (1) Earthquake, including any earth sinking, rising or shifting related to such event; (2) Landslide, including any earth sink- ing, rising or shifting related to such event; (3) Mine subsidence, meaning subsi- dence of a man-made mine, whether or not mining activity has ceased; (4) Earth sinking (other than sinkhole collapse), 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, ero- sion, improperly compacted soil and the action of water under the ground surface. Page 14 of 28 MP T1 02 01 00 BUSINESSOWNERS But if Earth Movement, as described of the failure or fluctuation occurs away in b. (1) through b.(4) above results from the described premises. in fire or explosion, we will pay for the But if the failure or fluctuation of power or loss or damage caused by that fire or other utility service results in a Covered explosion. Cause of Loss, we will pay for the loss or (5) Volcanic eruption, explosion or effu- damage resulting from that Covered sion. But if volcanic eruption, explo- Cause of Loss. sion of effusion results in fire or vol- f. War and Military Action canic action, we will pay for the loss or damage caused by that fire or vol- (1) War, including undeclared or civil canic action. war; Volcanic action means direct loss or (2) Warlike action by a military force, in- damage resulting from the eruption of cluding action in hindering or de- a volcano, when the loss or damage fending against an actual or expected is caused by: attack, by any government, sovereign (a) Airborne volcanic blast or air- (a) or other authority using military per- borne shock waves; or other agents; or (b) Ash, dust, or particulate matter; (3) Insurrection, rebellion, revolution, or usurped power or action taken by governmental authority in hindering (c) Lava flow. or defending against any of these. All volcanic eruptions that occur g. Water within any 168-hour period will con- con- stitute a single occurrence. (1) Flood, surface water, waves, tides, tidal waves, overflow of any body of Volcanic action does not include the water, or their spray, all whether cost to remove ash, dust or particu- driven by wind or not; late matter that does not cause direct physical loss of or damage to Cov- (2) Mudslide or mudflow; ered Property. (3) (a) Water or sewage that backs up or c. Governmental Action overflows from a sewer, drain or Seizure or destruction property by or- sump. der of governmental authority. (b) Except for septic tanks, cesspool systems and exterior drains, this But we will pay for loss or damage exclusion does not apply when caused by or resulting from acts of de- the cause of the water back-up or struction ordered by governmental sewage overflow occurs due to a authority and done at the time of a fire to blockage which originates on the prevent its spread, if the fire would be described premises. covered under this policy. (4) Water under the ground surface d. Nuclear Hazard pressing on, or flowing or seeping Nuclear reaction or radiation, or radioac- through: tive contamination, however caused. (a) Foundations, walls, floors or But if nuclear reaction or radiation, or ra- paved surfaces; dioactive contamination results in fire, we (b) Basements, whether paved or will pay for the loss or damage caused by not; or that fire. (c) Doors, windows or other open- e. Utility Services ings,. The failure or fluctuation of power or other But if Water, as described in 13.1.g.(1) utility service supplied to the described through (4) results in fire, explosion or premises, however caused, if the cause sprinkler leakage, we will pay for the loss MP T1 020 . 1 00 Page 15 of 28 BUSINESSOWNERS or damage caused by that fire, explosion or sprinkler leakage. h. Neglect Neglect of an insured to use reasonable means to save and preserve property from further damage at and after the time of loss. Collapse of Buildings Collapse of buildings meaning an abrupt falling down or caving in of a building or substantial part of a building with the re- sult being that the building or substantial part of a building cannot be occupied for its intended purpose. (1) This exclusion does not apply to col- lapse of buildings if caused only by one or more of the following: (a) A "specified cause of loss"; (b) Decay, insect or vermin damage that is hidden from view, unless the presence of such decay or in- sect or vermin damage is known to an insured prior to collapse; (c) Weight of people or personal property; (d) Weight of rain that collects on a roof; or (e) Use of defective material or methods in construction, remod- eling or renovation if the collapse occurs during the course of con- struction, remodeling or renova- tion; or (f) Use of defective material or methods in construction, remod- eling or renovation if the collapse occurs after construction, remod- eling, or renovation is complete and is caused in part by a cause of loss listed in i.(1) (a) through (d) above. In the event collapse results in a Covered Cause of Loss, the Com- pany will be liable only for such re- sulting loss or damage by that Cov- ered Cause of Loss. (2) We will not pay for loss of or damage to the following types of property, if otherwise covered in this policy, un- der items L(1)(b) though i.(1)(f) above, unless the loss or damage is a direct result of the collapse of a building: awnings, gutters and down- spouts, yard fixtures and outdoor swimming pools. If collapse results in a Covered Cause of Loss at the described premises, we will pay for the loss or damage caused by that Covered Cause of Loss. (3) A building or portion of a building that: (a) Is in imminent danger of abruptly falling down or caving in; or (b) Suffers a substantial impairment of structural integrity; is not considered a collapse but is considered to be in a state of immi- nent collapse. (4) As respects buildings in a state of imminent collapse, the Company will not pay for loss or damage unless the state of imminent collapse first mani- fests itself during the policy period and is caused only by one or more of the following which occurs during the policy period: (a) Fire; lightning; explosion; wind- storm or hail; aircraft or vehicles; riot or civil commotion; "sinkhole collapse"; weight of snow, ice or sleet; (b) Weight of people or personal property; (c) Weight of rain that collects on a roof; or (d) Use of defective material or methods in construction, remod- eling or renovation if the state of imminent collapse occurs during the course of construction, re- modeling or renovation. 2. We will not pay for loss or damage caused by or resulting from any of the following: a. Artificially generated electrical current, in- cluding electric arcing that disturbs elec- trical devices, appliances or wires unless caused by a "specified cause of loss". Page 16 of 28 MP Tt 02 01 00 BUSINESSOWNERS But if artificially generated electrical cur- rent results in fire, we will pay for the loss or damage caused by fire. b. Delay, loss of use or loss of market. c. Smoke, vapor or gas from agricultural smudging or industrial operations. d. (1) Wear and tear; (2) Rust, corrosion, fungus, decay, dete- rioration, wet or dry rot, mold, hidden or latent defect of any quality in prop- erty that causes it to damage or de- stroy itself; (3) Smog; (4) Settling, cracking, shrinking or ex- pansion; (5) Nesting or infestation, or discharge or release of waste products or secre- tions, by insects, birds, rodents or other animals; (6) Mechanical or machinery breakdown (including rupture or bursting caused by centrifugal force). This exclusion does not apply to resultant loss or damage by fire, building glass break- age or elevator collision. (7) The following causes of loss to per- sonal property: (a) Dampness or dryness of atmos- phere; (b) Changes in or extremes of tem- perature; (c) Marring or scratching; (d) Evaporation, loss of weight, ex- posure to light or change in fla- vor, color, texture or finish; (e) Leakage; or (8) Contamination. But if an excluded cause of loss that is listed in 2.d.(1), 2.d.(2), 2.d.(3), 2.d.(4), 2.d.(5), 2.d.(7), 2.d.(8) results in a "speci- fied 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. e. Explosion of steam boilers, steam pipes, steam engines or steam turbines owned or leased by you, or operated under your control unless caused by a "specified cause of loss". But if explosion of steam boilers, steam pipes, steam engines or steam turbines results in fire or combus- tion explosion, we will pay for the loss or damage caused by that fire or combus- tion explosion. We will also pay for loss or damage caused by or resulting from the explosion of gases or fuel within the fur- nace of any fired vessel or within the flues or passages through which the gases of combustion pass. f. Continuous or repeated seepage or leak- age of water or other liquids that occurs over a period of 14 days or more. g. Water, other liquid, powder or molten material that leaks or flows from plumb- ing, heating, air conditioning or other equipment (except fire protection sys- tems) caused by or resulting from freez- ing, unless: (1) You do your best to maintain heat in the building or structure; or (2) You drain the equipment and shut off the water supply if the heat is not maintained. In. Dishonest or criminal acts by you, or any of your partners, "employees", directors or trustees: (1) Acting alone or in collusion with oth- ers; or (2) Whether or not occurring during the hours of employment. This exclusion does not apply to acts of destruction by your "employees", but "theft" by "employees" is not covered ex- cept as provided under the Employee Dishonesty Additional Coverage. i. 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 by any person who is not an "employee". This exclusion does not apply to property in the custody of carriers for hire. j: Rain, snow, sand, dust, ice or sleet to personal property in the open. k. Discharge, dispersal, seepage, migration, release or escape of "pollutants" unless the release, discharge or dispersal is it- self caused by any of the "specified causes of loss". But if the discharge, dis- MP T1 02 01 00 Page 17 of 28 BUSINESSOWNERS persal, seepage, migration, release or escape of "pollutants" results in a "speci- fied cause of loss", we will pay for the loss or damage caused by that "specified cause of loss". 1. Default on any credit sale, loan, or similar transaction. m. 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 physi- cal evidence to show what happened to the property. This exclusion does not ap- ply to "money" and "securities". n. Loss of property or that part of any loss, the proof of which as to its existence or amount is dependent on: (1) Any inventory computation; or (2) A profit and loss computation. o. The transfer of property to a person or to a place outside the described premises on the basis of unauthorized instructions. This exclusion does not apply to loss or damage from "employee dishonesty". p. Loss of "money" or "securities" caused by or resulting from accounting or arithmetic errors or omissions. 3. We will not pay for loss or damage caused by or resulting from any of the following, but if an excluded cause of loss that is listed in 3.a. through 3.c. below 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, but this exclusion only applies if weather conditions contrib- ute in any way with a cause or event ex- cluded in B.1. above to produce the loss or damage. b. Acts or decisions, including the failure to act or decide, of any person, group, or- ganization or governmental body. c. Faulty, inadequate or defective: (1) Planning, zoning, development, sur- veying, siting; (2) Design, specifications, workmanship, repair, construction, renovation, re- modeling, 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 Ex- clusions We will not pay for: a. Any Extra Expense, or increase of Busi- ness Income loss, caused by or resulting from: (1) Delay in rebuilding, repairing or re- placing the property or resuming "op- erations", due to interference by strikers or other persons at the loca- tion of the rebuilding, repair or re- placement; or (2) 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" and the period of extended Business Income. b. Any other consequential loss. C. LIMITS OF INSURANCE 1. Unless otherwise stated, the most we will pay for loss or damage in any one occurrence is the applicable Limit of Insurance shown in the Declarations, Schedules, Coverage Forms, or endorsements. 2. Inflation Guard a. When so indicated in the Declarations, the Limit of Insurance for property to which this coverage applies will automati- cally increase by the annual percentage shown. b. The amount of increase will be: (1) The Limit of Insurance that applied on the most recent of the policy incep- tion date, the policy anniversary date, or any other policy change amending the Limit of Insurance, multiplied by (2) The percentage of annual increase shown in the Declarations, expressed as a decimal (example: 8% is .08), multiplied by (3) The number of days since the begin- ning of the current policy year or the effective date of the most recent pol- icy change amending the Limit of In- surance, divided by 365. Page 18 of 28 MP T1 02 01 00 BUSINESSOWNERS Example: If: The applicable Building limit is $100,000 c. Money Orders and Counterfeit Paper Currency; d. Arson and Theft Reward; or e. Valuable Papers. The annual percentage increase 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 3. Business Personal Property Limit - Sea- sonal Increase a. The Limit of Insurance for Business Per- sonal Property shown in the Declarations will automatically increase by 25% to pro- vide 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 preced- ing the date the loss or damage oc- curs; or (2) The period of time you have been in business at the location where the loss or damage occurs, on the date the loss or damage occurs. D. DEDUCTIBLES 1. We will not pay for loss or damage in any one occurrence until the amount of loss or dam- age exceeds the Deductible shown in the Declarations. We will then pay the amount of covered loss or damage in excess of the De- ductible up to the applicable Limit of Insur- ance. 2. Regardless of the amount of the Deductible, the most we will deduct from any loss or damage under the Exterior Building Glass Extension of Coverage in any one occurrence is the Exterior Building Glass Deductible shown in the Declarations. But this Exterior Building Glass Deductible will not increase the deductible shown in the Declarations. 3. No deductible applies to the following: a. Fire Department Service Charge; b. Business Income (including Extra Ex- pense and Civil Authority); 4. If more than one deductible applies to the same loss, the most we will deduct from the loss payment is the highest deductible amount. E. PROPERTY LOSS CONDITIONS The following conditions apply in addition to the Common Policy Conditions: 1. Abandonment There can be no abandonment of any prop- erty to us. 2. Appraisal If we and you disagree on the value of the property, the amount of Net Income and op- erating expense or the amount of loss, either may make written demand for an appraisal of the loss. In this event, each parry will select a competent and impartial appraiser. The two appraisers will select an umpire. If they can- not agree, either may request that selection be made by a judge of a court having jurisdic- tion. The appraisers will state separately the value of the property, the amount of Net In- come and operating expense or the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally. If there is an appraisal, we will still retain our right to deny the claim. 3. Duties in the Event of Loss or Damage a. You must see to it that the following are done upon the discovery of loss or dam- age, or a situation that may lead to loss or damage, to Covered Property: (1) Notify the police if a law may have been broken. This duty does not ap- ply to loss or damage arising from Employee Dishonesty and Forgery or Alteration. (2) Give us prompt notice of the loss or damage. Include a description of the property involved. MP T1 02 01 00 Page 19 of 28 BUSINESSOW NERS (3) As soon as possible, give us a de- scription of how, when and where the loss or damage occurred. (4) Take all reasonable steps to protect the Covered Property from further damage, and keep a record of your expenses necessary to protect the Covered Property, for consideration in the settlement of the claim. This will not increase the Limit of Insur- ance. However, we will not pay for any loss or damage resulting from a cause of loss that is not a Covered Cause of Loss. Also, if feasible, set the damaged property aside and in the best possible order for examina- tion. (5) At our request, give us complete in- ventories of the damaged and un- damaged property. Include quantities, costs, values and amount of loss claimed. (6) As often as may be reasonably re- quired, permit us to inspect the prop- erty proving the loss or damage and examine your books and records. Also permit us to take samples of damaged and undamaged property for inspection, testing and analysis, and permit us to make copies from your books and records. (7) For loss or damage from other than Employee Dishonesty and Forgery or Alteration send us a signed, sworn proof of loss containing the informa- tion 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) For loss or damage resulting from Employee Dishonesty and Forgery or Alteration, give us a detailed, sworn proof of loss within 120 days of the date of discovery. (9) Cooperate with us in the investigation and settlement of the claim. (10) If you intend to continue your busi- ness, you must resume all or part of your "operations" as quickly as pos- sible. 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 relat- ing to this insurance or the claim, includ- ing an insured's books and records. In the event of an examination, an insured's an- swers must be signed. 4. Loss Payment - Building and Personal Property a. In the event of loss or damage covered by this Coverage Form, at our option, we will either: (1) Pay the value of lost or damaged property; (2) Pay the cost of repairing or replacing the lost or damaged property, subject to b. below; C. e. We will determine the value of Covered (3) Take all or any part of the property at an agreed or appraised value; or (4) Repair, rebuild or replace the prop- erty with other property of like kind and quality, subject to b. below. We will determine the value of lost or damaged property, or the cost of its repair or replacement, in accordance with the applicable terms of 4. e. below or any ap- plicable provision which amends or su- persedes the value of Covered Property. b. The cost to repair, rebuild or replace does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property. dWe will give notice of our intentions within 30 days after we receive the proof of loss. . We will not pay you more than your finan- cial interest in the Covered Property. Property as follows: (1) At replacement cost (without deduc- tion for depreciation), except as pro- vided in (2) through (13) below. (a) You may make a claim for loss or damage covered by this insur- ance on an actual cash value ba- sis instead of on a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim on a Page 20 of 28 MP T1 02 01 00 BUSINESSOWNERS replacement cost basis if you no- which would have been incurred tify us of your intent to do so if the building had been rebuilt at within 180 days after the loss or the original premises. damage. (d) The cost of repair or replacement (b) We will not pay on a replacement does not include the increased cost basis for any loss or dam- cost attributable to enforcement age: of any ordinance or law regulat- i. Until the lost or damaged ing the construction, use or repair property is actually repaired of any property. or replaced; and (2) If the Declarations indicate that Ac- ii. Unless the repairs or re- tual Cash Value applies to Buildings placement are made as soon or Business Personal Property, para- as reasonably possible after graph (1) above does not apply to the the loss or damage. property for which Actual Cash Value With respect to tenants' im- is indicated. provements and betterment's, the (3) Property of others at the amount you following also applies: are liable plus the cost of labor, mate- (i) If the conditions in (b) I. and rials or services furnished or ar- (b) ii. above are not met, the ranged by you on personal property value of tenants' improve- of others, not to exceed the replace- ments and betterments will ment cost. be determined as a propor- (4) The following property at actual cash tion of your original cost, as value: set forth under 4.e.(6) below; (a) Used or second-hand merchan- and dise held in storage or for sale; (ii) We will not pay for loss or ' (b) Household furnishings; improve- damage to tenants ments and betterments if (c) Manuscripts; others pay for repairs or re- (d) Works of art, antiques or rare ar- placement. ticles including etchings, pictures, (c) We will not pay more for loss or statuary, marbles, bronzes, por- damage on a replacement cost celains and bric-a-brac; and basis than the least of i., it. or iii. (e) Personal effects. subject to (d) below: (5) Glass at the cost replacement with I. The Limit of Insurance appli- safety glazing material if required by cable to the lost or damaged law. it. The cost to replace the lost or Tenants' Improvements and Better- (6) damaged property with other meets at: property: (a) Replacement cost if you make (iii) Of comparable material repairs promptly. and quality; and (b) A proportion of your original cost (iv) Used for the same pur- if you do not make repairs promptly. We will determine the pose; or proportionate value as follows: iii. The amount actually spent i. Multiply the original cost by that is necessary to repair or the number of days from the replace the lost or damaged loss or damage to the expira- property. tion of the lease; and If a building is rebuilt at a new Divide the amount deter- ii premises, the cost described in . mined in I. above by the (c) It. above is limited to the cost number of days from the in- MP T1 02 01 00 Page 21 of 28 BUSINESSOWNERS stallation of improvements to the expiration of the lease. If your lease contains a re- newal option, the expiration of the renewal option period will replace the expiration of the lease in this procedure. (c) Nothing, if others pay for repairs or replacement. (7) Valuable Papers and Records, in- cluding those which exist on elec- tronic or magnetic media (other than prepackaged software programs), at the cost of: (a) Blank materials for reproducing the records; and (b) Labor to transcribe or copy the records. (8) "Stock" you have sold but not deliv- ered at the selling price less dis- counts and expenses you otherwise would have had. (9) Property in transit (other than "stock" you have sold) at the amount of in- voice, including your prepaid or ad- vanced freight charges- and other charges, which may have accrued or become. legally due since the ship- ment. If you have no invoice, actual cash value will apply. (10) "Money" at its face value; and (11) "Securities" at their value at the close of business on the day the loss is dis- covered. (12) The value of United States Govern- ment Internal Revenue taxes and custom duties and refundable state and local taxes paid or fully deter- mined on the following property held for sale will not be considered in de- termining the value of Covered Prop- erty: (a) Distilled spirits; (b) Wines; (c) Rectified products; or (d) Beer. (13) Lottery tickets at their initial cost to you except for winning tickets at their redeemed value. f. Our payment for loss of or damage to personal 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 pay- ments will satisfy your claims against us for the owners' property. We will not pay the owners more than their financial in- terest in the Covered Property. g. We may elect to defend you against suits arising from claims of owners of property. We will do so at our expense. h. 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. i. At our option, we may make a partial payment toward any claims, subject to the policy provisions and our normal ad- justment process. To be considered for partial claim payment, you must submit a partial sworn proof of loss with supporting documentation. Any applicable policy de- ductibles must be satisfied before any partial payments are made. 5. Loss Payment -Business Income and Ex- tra Expense a. The amount of Business Income loss will be determined based on: (1) The Net Income of the business be- fore the direct physical loss or dam- age occurred; (2) The likely Net Income of the business if no physical loss or damage oc- curred, but not including any likely in- crease in Net Income attributable to an increase in the volume of business as a result of favorable business conditions caused by the impact of the Covered Cause of Loss on cus= tomers or on other businesses; (3) The operating expenses, including payroll expenses, necessary to re- sume "operations" with the same quality of service that existed just before the direct physical loss or damage; and Page 22 of 28 MP T1 02 01 00 BUSINESSOWNERS (4) Other relevant sources of information, including: (a) Your financial records and ac- counting procedures; (b) Bills, invoices and other vouch- ers; and (c) Deeds, liens or contracts. b. The amount of Extra Expense will be de- termined based on: (1) All reasonable and necessary ex- penses that exceed the normal oper- ating expenses that would have been incurred by "operations" during the "period of restoration" if no direct physical loss or damage had oc- curred. We will deduct from the total of such expenses: (a) The salvage value that remains of any property bought for tempo- rary use during the "period of restoration", once "operations" are resumed; and (b) Any Extra Expense that is paid for by other insurance, except for insurance that is written subject to the same plan, terms, condi- tions and provisions as this in- surance; and (2) All reasonable and necessary ex- penses that reduce the Business In- come loss that otherwise would have been incurred. c. Upon resumption of your "operations", we will reduce the amount of your: (1) Business Income loss, other than Extra Expense, to the extent you can resume your "operations", in whole or in part, by using damaged or undam- aged property (including merchandise or stock) at the described premises or elsewhere. (2) Extra Expense loss to the extent you can return "operations" to normal and discontinue such Extra Expense. d. 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. e. We will pay for covered loss or damage within 30 days after we receive your sworn proof of loss provided you have complied with all of the terms of this pol- icy; and (1) We have reached agreement with you on the amount of loss; or (2) An appraisal award has been made. 6. Recovered Property If either you or we recover any property after loss settlement, that party must give the other prompt notice. a. For all loss other than by Employee Dis- honesty and Forgery or Alteration, you have the option to retain the recovered property. If you do retain the property you must then return to us the amount we paid to you for the property. (1) We will pay: (a) Recovery expenses; and (b) Costs to repair the covered prop- erty. (2) But, the most we will pay is the smallest of the following: (a) The total of (1)(a) and (b) above; (b) The value of the recovered prop- erty; or (c) The Limit of Insurance. b. In all other instances, recoveries, less the cost of obtaining them, made after set- tlement of loss covered by this insurance will be distributed as follows: (1) To you, until you are reimbursed for any loss that you sustain that ex- ceeds the Limit of Insurance and the Deductible Amount, if any; (2) Then to us, until we are reimbursed for the settlement made; (3) Then to you, until you are reimbursed for that part of the loss equal to the Deductible Amount, if any. c. Recoveries do not include any recovery: (1) From insurance, suretyship, reinsur- ance, security or indemnity taken for our benefit; or (2) Of original "securities" after dupli- cates of them have been issued. MP T1 02 01 00 Page 23 of 28 BUSINESSOWNERS 7. Noncumulative Limit No Limit of Insurance cumulates from policy period to policy period. F. COMMERCIAL PROPERTY CONDITIONS 1. Concealment, Misrepresentation or Fraud This Coverage Form is void in any case of fraud by you. It is also void if you or any other insured, at any time, intentionally conceal or misrepresent a material fact concerning: a. This Coverage Form; b. The Covered Property; c. Your interest in the Covered Property; or d. A claim under this Coverage Form. 2. 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 affect coverage at any location where, at the time of loss or damage, the breach of condi- tion does not exist. 3. Insurance Under Two or More Coverages. If two or more coverages under this Coverage Form apply to the same loss or damage, we will not pay more than the actual amount of the loss or damage. 4. Legal Action Against Us No one may bring a legal action against us under this Coverage Form unless: a. There has been full compliance with all of the terms of this Coverage Form; and b. The action is brought within 2 years after the date on which the direct physical loss or damage occurred. c. For Employee Dishonesty and Forgery or Alteration losses, the following additional conditions apply: You may not bring any legal action against us involving loss until 90 days after you have filed proof of loss with us; and unless brought within 2 years from the date you discover the loss. 5. Liberalization If we adopt any revision that would broaden the coverage under this Coverage Form with- out additional premium within 45 days prior to or during the policy period, the broadened coverage will immediately apply to this Cov- erage Form. 6. No Benefit to Bailee No person or organization, other than you, having custody of Covered Property will benefit from this insurance. 7. Other Insurance a. You may have other insurance subject to the same plan, terms, conditions and pro- visions as the insurance under this Cov- erage Form. If you do, we will pay our share of the covered loss or damage. Our share is the proportion that the applicable Limit of Insurance under this Coverage Form bears to the Limits of Insurance of all insurance covering on the same basis. b. If there is other insurance covering the same loss or damage, other than that de- scribed in 7.a. above, 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. 8. Policy Period, Coverage Territory Under this Coverage Form: a. We cover loss or damage you sustain through arts committed or events occur- ring: (1) During the policy period shown in the Declarations (except as provided by the provisions of the Employee Dis- honesty and Forgery or Alteration Additional Coverages); (2) Within the coverage territory. b. The coverage territory is: (1) The United States of America (in- cluding its territories and posses- sions); (2) Puerto Rico; and (3) Canada. 9. Transfer of Rights of Recovery Against Others to Us. If any person or organization to or for whom we make payment under this Coverage Form has rights to recover damages from another, those rights are transferred to us to the extent Page 24 of 28 MP T1 02 01 00 BUSINESSOWNERS 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 writing: a. Prior to a loss to your Covered Property or Covered Income. b. After a loss to your Covered Property or Covered Income only if, at time of loss, that party is one of the following: (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. This will not restrict your insurance. 10. Coinsurance If a Coinsurance percentage is shown in the Declarations, the following condition applies. a. We will not pay the full amount of any loss if the value of Covered Property at the time of loss multiplied by the Coinsur- ance percentage shown for it in the Dec- larations is greater than the Limit of In- surance for the property. Instead, we will determine the most we will pay using the following steps: (1) Multiply the value of Covered Prop- erty at the time of loss by the Coin- surance percentage; (2) Divide the Limit of Insurance of the property by the figure determined in step (1); (3) Multiply the total amount of the cov- ered loss, before the application of any deductible, by the figure deter- mined in step (2); and (4) Subtract the deductible from the fig- ure determined in step (3). We will pay the amount determined in step (4) or the limit of insurance, which- ever is less. For the remainder, you will either have to rely on other insurance or absorb the loss yourself. Example No. 1 (Under insurance): When: The value of the property is $250,000 The Coinsurance percent for it is 90% The Limit of Insurance for it is $112,500 The Deductible is $250 The amount of loss is $40,000 Step (1): $250,000 x 90% _ $225,000 (the minimum amount of insurance to meet your Coinsurance requirements) Step (2): $112,500/$225;000 =.50 Step (3): $40,000 x .50 = $20,000 Step (4): $20,000 - $250 = $19,750 We will pay no more than $19,750. The remaining $20,250 is not covered. Example No. 2 (Adequate Insurance): When: The value of the property is $250,000 The Coinsurance percentage for it is 90% The Limit of Insurance for it is $225,000 The Deductible is $250 The amount of loss is $40,000 The minimum amount of insurance to meet your Coinsurance requirement is $225,000 ($250,000 x 90%). Therefore, the Limit of Insurance in this Example is adequate and no penalty ap- plies. We will pay no more than $39,750 ($40,000 amount of loss minus the de- ductible of $250). b. Coinsurance does not apply to: (1) "Money" and "securities"; (2) Additional Coverages; (3) Coverage Extensions; or (4) Loss or damage in any one occur- rence totaling less than $2,500. 11. Mortgageholders a. The term, mortgageholder, includes trus- tee. b. We will pay for covered loss of or damage to buildings or structures to each mort- MP T1 02 01 00 Page 25 of 28 BUSINESSOWNERS gageholder shown in the Declarations in their order of precedence, as interests may appear. c. The mortgageholder has the right to re- ceive loss payment even if the mortgage- holder 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 com- ply with the terms of this Coverage Form, the mortgageholder will still have the right to receive loss payment if the mortgage- holder: (1) Pays any premium due under this Coverage Form 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 ownership or occupancy or substan- tial change in risk known to the mort- gageholder. All of the terms of this Coverage Form will then apply directly to the mortgageholder. e. If we pay the mortgageholder for any loss or damage and deny payment to you be- cause of your acts or because you have failed to comply with the terms of this Coverage Form; (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 rights to re- cover the full amount of the mort- gageholder's claim will not be im- paired. At our option, we may pay to the mortgageholder 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. If. If we cancel this policy, we will give writ- ten 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. G. PROPERTY DEFINITIONS "Banking Premises" means the interior of that portion of any building which is occupied by a banking institution or similar safe de- pository. 2. a. "Employee(s)" means: (1) Any natural person: (a) While in your service (and for 30 days after termination of service); and (b) Whom you compensate directly by salary, wages or commissions; and (c) Whom you have the right to direct and control while performing services for you. (2) Any natural person employed by an employment contractor while that person is subject to your direction and control and performing services for you excluding, however, any such person while having care and custody of property outside the premises. (3) Your directors or trustees while acting as a member of any of your elected or appointed committees to perform on your behalf specific, as distin- guished from general, directorial acts. b. But "Employee" does not mean any agent, broker, factor, commission mer- chant, consignee, independent contractor or representative of the same general character. 3. "Employee Dishonesty" means only dis- honest acts, committed by an "employee", whether identified or not, acting alone or in collusion with other persons, except you or a partner, with the manifest intent to: a. Cause you to sustain loss; and also b. Obtain financial benefit (other than sala- ries, commissions, fees, bonuses, pro- motions, awards, profit sharing, pensions Page 26 of 28 MP T1 02 01 00 BUSINESSOWNERS or other employee benefits earned in the normal course of employment) for: (1) The "employee"; or (2) Any person or organization intended by the "employee" to receive that benefit. 4. "Forgery" means the signing of the name of another person or organization with intent to deceive; it does not mean a signature which consists in whole or in part of one's own name signed with or without authority, in any capacity for any purpose. 5. "Interior of any building or structure" as used in this policy means all portions of the structure that are within the exterior skin of the structure's walls and roof, including but not limited to lathe, sand paper, framing, wallboard and tarpaper. 6. "Maintenance Fees" means the regular payment made to you by unit-owners and used to service the common property. 7. "Messenger" means you, and any of your partners or any "employees" while having care and custody of the property outside the premises. 8. "Money" means currency and coins in cur- rent use, bank notes, travelers checks, reg- ister checks and money orders held for sale to the public. 9. "Operations" means your business activities occurring at the described premises; and if Business Income coverage for "Rental Value" applies, the tenantability of the described premises. 10. "Period of Restoration" means the period of time that: a. Begins with the date of direct physical loss or damage caused by or resulting from any Covered Cause of Loss at the described premises; and b. Ends on the earlier of: (1) The date when the property at the described premises should be re- paired, rebuilt or replaced with rea- sonable speed and similar quality; or (2) The date when business is resumed at a new permanent location. "Period of restoration" does not in- clude any increased period required due to the enforcement of any law that: (a) Regulates the construction, use or repair, or requires the tearing down of any property; or (b) Regulates the prevention, control, repair, clean-up or restoration of environmental damage. The expiration date of this policy will not cut short the "period of restoration". 11. "Pollutants" means any solid, liquid, gase- ous or thermal irritant or contaminant, includ- ing smoke, vapor, soot, fumes, acids, alkalis, chemicals, waste, and any unhealthful or hazardous building materials (including but not limited to asbestos and lead products or materials containing lead.). Waste includes materials to be recycled, reconditioned or re- claimed. 12. "Rental Value" means the: a. Total anticipated rental income from ten- ant occupancy of the premises described in the Declarations as furnished and equipped by you; and b. Amount of all charges which are the legal obligation of the tenant(s) and which would otherwise be your obligations; and c. Fair rental value of any portion of the de- scribed premises which is occupied by you. 13. "Securities" means all negotiable and non- negotiable instruments or contracts repre- senting either "money" or other property and includes revenue or other stamps in current use, tokens, tickets and credit card slips for sales made by you and held by you for reim- bursement from companies issuing credit cards, but does not include "money". Lottery tickets held for sale are not securities. 14. "Specified Causes of Loss" means the fol- lowing: Fire; lightning; explosion; windstorm or hail; smoke; aircraft or vehicles; riot or civil com- motion; vandalism; leakage from fire extin- guishing equipment; sinkhole collapse; vol- canic action; falling objects; weight of snow, ice or sleet; water damage. a. Sinkhole collapse means the sudden sinking or collapse of land into under- ground empty spaces created by the ac- MP T7 02 01 00 Page 27 of 28 BUSINESSOWNERS tion of water on limestone or dolomite. It does not include: (1) The cost of filling sinkholes; or (2) Sinking or collapse of land into un- derground man-made 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 struc- ture", or property inside a building or structure, unless the roof or an out- side wall of the building or structure is first damaged by afalling object. c. Water damage means accidental dis- charge or leakage of water or steam as the direct result of the breaking apart or cracking of any part of a system or appli- ance (other than a sump system including its related equipment and parts) contain- ing water or steam. 15. "Stock" means merchandise held in storage or for sale, raw materials and in-process or finished goods, including supplies used in their packing or shipping, 16. "Suspension" means: a. The partial or complete cessation of your business activities; and Page 28 of 28 b. That a part or all of the described prem- ises is rendered untenantable, if coverage for "Rental Value" applies. 17. "Theft" means any act of stealing but ex- cluding dishonest acts by "employees" and "Forgery" or Alteration. 18. "Vacant" means the following: (1) When this policy is issued to a tenant, and with respect to that tenant's interest in Covered Property, building means the unit or suite rented or leased to the ten- ant. Such building is vacant when it does not contain enough business personal property to conduct customary operation. (2) 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: (a) Rented to a lessee or sub-lessee and used by the lessee or sub-lessee to conduct its customary operations; and/or (b) Used by the building owner to con- duct customary operations. MP T1 02 01 00 BUSINESSOWNERS POLICY NUMBER: I-660-3793A531-TIL-02 ISSUE DATE: 09-24-02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDATORY PROVISIONS WHOLESALERS PAC PROGRAM INCLUDING BUSINESS INCOME ORDINARY PAYROLL LIMITATION This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE PART CRIME COVERAGES SCHEDULE EMPLOYEE DISHONESTY FORGERY OR ALTERATION THEFT OF MONEY AND SECURITIES 1 2. 3. The insurance provided under Additional Cover- age A.6.d. Employee Dishonesty in the BUSI- NESSOWNERS PROPERTY COVERAGE SPE- CIAL FORM is changed by replacing item d.(2) with the following: d. (2) The most we will pay for loss or damage in any one occurrence is the Limit of In- surance shown in the Schedule above for Employee Dishonesty. The insurance provided under Additional Cover- age A.6.h. Forgery or Alteration in the BUSI- NESSOWNERS PROPERTY COVERAGE SPE- CIAL FORM is changed by replacing h.(2) with the following: h. (2) The most we will pay for loss or damage in any occurrence is the Limit of Insur- ance shown in the Schedule above for Forgery or Alteration. Under A.5. Limitations of the BUSINESSOWN- ERS PROPERTY COVERAGE SPECIAL FORM, provision d. is deleted and replaced by the fol- lowing: d. For loss or damage by "theft", the most we will pay in any one occurrence for the follow- ing types of property is: (1) The Limit of Insurance shown in the Schedule above for theft of "money" and "securities" except by "employee dishon- esty" and "forgery" or alteration. (2) $2,500 for all furs, fur garments and gar- ments trimmed with fur. (3) $5,000 for all jewelry, watches, watch movements, jewels, pearls, precious and semi-precious stones, and gold, silver, LIMIT OF INSURANCE $ 25,000 LIMIT OF INSURANCE $ 25,000 LIMIT OF INSURANCE $ 25,000 platinum and other precious alloys or metals. (4) $2,500 for all patterns, dies, molds and forms. 4. Under A.7. Coverage Extensions of the BUSI- NESSOWNERS PROPERTY COVERAGE SPE- CIAL FORM, provision c. is deleted and replaced with the following: c. Business Personal Property Off Premises Your Business Personal Property Insurance is extended to apply to property owned by you and used in your business as follows: (1) "Money" and "Securities" while in transit, at a "banking premises", or temporarily at your home. (2) "Stock" while at a premises you do not own, lease or operate other than at an exhibition, installation, or customer's lo- cation. (3) Business Personal Property other than "stock" while temporarily away from the described premises, while in transit or at a premises you do not own, lease or op- erate. This extension does not apply to property away from the premises for more than 60 consecutive days, sales representative's samples, property at exhibitions or property rented or leased to others. 5. Under A.6. Additional Coverages of the BUSI- NESSOWNERS PROPERTY COVERAGE SPE- CIAL FORM, provision n. is added as follows: MP T1 81 01 00 Page 1 of 2 BUSINESSOWNERS n. Brands and Labels If branded or labeled merchandise that is covered property is damaged by a Covered Cause of Loss, we may take all of or any part of the property at an agreed or appraised value. If so, you may: (1) Stamp the word "Salvage" on the mer- chandise or its containers, if the stamp will not physically damage the merchan- dise; or (2) Remove the brands or labels, if doing so will not physically damage the merchan- dise. You must relabel the merchandise or its containers to comply with the law. We will pay reasonable costs you incur to perform the activity described in n.(1) or n.(2) above. The most we will pay for these costs and the value of the damaged property under this Additional Coverage is $25,000. 6. Under A.7. Coverage Extensions of the BUSI- NESSOWNERS PROPERTY COVERAGE SPE- CIAL FORM, provisions o. and p. are added as follows: o. Sales Representative's Samples (1) You may extend the insurance that ap- plies to your Business Personal Property to apply to: (a) Samples of your stock in trade (in- cluding containers); and (b) Similar property of others; while such property is in the custody of your sales representatives, or agents, or yourself while acting as a sales repre- sentative, or while in transit between your premises and your sales representative. (2) The most we will pay for loss or damage under this coverage extension is $25,000 for property in the custody of any one sales representative. p. Exhibitions (1) You may extend the insurance that ap- plies to your Business Personal Property, including property of others that is in your care, custody or control, to apply to that property while temporarily on display to the public at a premises you do not regu- larly occupy. (2) The most we will pay for loss or damage under this extension is $25,000 at any one exhibition. 7. The insurance provided under Business Income, paragraph A.3.a. in the BUSINESSOWNERS PROPERTY COVERAGE SPECIAL FORM is changed as follows: A.3.a, is replaced by the following: a. Business Income means that the: (1) Net Income (Net Profit or Loss before in- come taxes) that would have been earned or incurred; and (2) Continuing normal operating expenses incurred, including "ordinary payroll" but limited to 90 days following the date of di- rect physical loss or damage. The num- ber of days may be used in two separate periods during "period of restoration" (a) "Ordinary payroll expenses" means payroll expenses for all your employ- ees except: (1) Officers; (2) Executives; (3) Department Managers; and (4) Employees under contract. (b) "Ordinary payroll expenses" includes: (1) Payroll; (2) Employee Benefits, if directly re- lated to payrolls; (3) FICA payments; (4) Union dues; and (5) Workers' Compensation premi- ums. 8. Under A.3., Business Income, the following is added: d. When a Limit of Insurance is shown in the Declarations, that Limit is the most we will pay in any one occurrence for loss of Busi- ness Income. Page 2 of 2 MP T1 81 01 00 BLISINESSOWNERS THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. POWER PAC PLUS ENDORSEMENT This endorsement modifies insurance provided under the following BLISINESSOWNERS COVERAGE PART A. The Businessowners Property Coverage - (2) replace or repair faulty valves or Special Form is revised as follows: controls which caused the dis- 1. The limit applicable to the Additional Cov- charge. erage - Pollutant Cleanup and Removal is The most we will pay under this Addi- increased from $10,000 to $25,000. tional Coverage is $5,000 in any one 2. The limit applicable to the Additional Cov- occurrence. erage - Fire Department Service Charge This amount is in addition to the Limits is increased from $1,000 to $10,000. of Insurance. 3. The "theft" limitation for all patterns, dies, c. Lost Key Consequential Loss molds and forms under Limitations A.5.d. (1) We will pay for consequential loss to is changed to provide an additional $50,000. keys and locks if a master or grand 4. The following Additional Coverages are master key is lost or damaged from added: a Covered Cause of Loss. We will a. Brands and Labels pay for: If branded or labeled merchandise that (a) the actual cost of keys, and is covered property is damaged by a (b) adjustment of locks to accept Covered Cause of Loss, we may take all new keys, or of or any part of the property at an (c) if required, new locks including agreed or appraised value. If so, you cost of their installation. may: (2) Loss damage must be caused by 1 the word "Salvage" on the () Stamp or result from a Covered Cause of merchandise or its containers, if the Loss including mysterious disap- stamp will not physically damage pearance. the merchandise; or (3) The most we will pay for loss or (2) Remove the brands or labels, if do- damage under this Additional Cav- ing so will not physically damage the erage is $500 at each described merchandise. You must relabel the premises. merchandise or its containers to comply with the law. This amount is in addition to the Limits of Insurance. We will pay reasonable costs you incur to perform the activity described in a.(1) d. Ordinance or Law - Increased Cost of and a.(2) above. The most we will pay Construction or Repair for these costs and the value of the If a Covered Cause of Loss occurs to damaged property under this Additional covered Building Property insured under Coverage is $25,000. this policy at a described premises, we b. Fire Protective Equipment Discharge will pay the increased cost to repair, re- build or construct the damaged building If fire protective equipment discharges caused by enforcement of a building, accidentally or to control a Covered zoning or land use ordinance or law Cause of Loss we will pay your cost to: which is in force at the time of loss. The (1) refill or recharge the system with the repaired or rebuilt building must be in- extinguishing agents that were dis- tended for similar occupancy as the sur- charged; and rent property, unless otherwise required by zoning or land use ordinance or law. MP T9 77 01 00 Page 1 of 6 BUSINESSOWNERS We will not pay under this Additional (3) Power Supply Services, meaning Coverage for the costs associated with the following types of property sup- the enforcement of any ordinance or law plying electricity, steam or gas to the which requires any insured or others to described premises: test for, monitor, clean up, remove, (a) Utility generating plants; contain, treat, detoxify or neutralize, or in any way respond to, or assess the (b) Switching stations; effects of "pollutants" and asbestos (c) Transformers; and whether or not such asbestos is deemed " " (d) Transmission lines, except to be a pollutant . overhead transmission lines. We will not pay for increased construc- The most we will pay for loss or damage tion costs until the building is actually under this Additional Coverage is repaired or replaced, at the same or an- $2,500. other premises. will not pay under this coverage for We 5. The following Coverage Extensions are re- loss due to any ordinance or law which: vised as follows: with (1) You were required to comply a. Business Income and Extra Expense before the loss, even if the building - Newly Acquired Locations was undamaged; and The limit of $250,000 is increased to (2) You failed to comply with. $500,000 when Business Income is in- cluded. The most we will pay for loss under this b. Claim Data Expense Additional Coverage is $25,000 in any one occurrence. The limit of $1,000 is increased to This amount is in addition to the Limits $5,000. of Insurance. c. Newly Acquired or Constructed e. Utility Services- Direct Damage Property We will pay for loss or damage to Cov- (1) The limit for your new buildings or ered Property caused by the interruption additions while being built the described premises or newly y of services to the described premises. premises is increased from om The interruption must result from direct $250, $250,000 to $500,000. physical loss or damage by a Covered Cause of Loss to the following property (2) The limit for newly acquired Busi- not on the described premises: ness Personal Property is increased (1) Water Supply Services, meaning the from $250,000 to $500,000. following types of property supplying d. Outdoor Property water to the described premises: The limit of $5,000 at each described (a) Pumping stations; and premises is increased to $10,000. (b) Water mains. e. Valuable Papers and Records - Cost (2) Communication Supply Services, of Research is deleted and is replaced meaning property supplying com- with munications services, including Valuable Papers and Records (Other telephone, radio, microwave, or Than Accounts Receivable) - Cost of television services to the described Research premises, such as You may extend the insurance that ap- (a) Communication transmission plies to Business Personal Property to lines except overhead transmis- apply to your costs to research, replace sion lines including fiber optic or restore the lost information on lost or transmission lines; damaged valuable papers and records, (b) Coaxial cables; and (other than accounts receivables), in- cluding those which exist on electronic (c) Microwave radio relays, except or magnetic media, for which duplicates satellites. do not exist. Page 2 of 6 MP T9 77 01 00 BUSINESSOWNERS The most we will pay under this Cover- (b) any inventory computation; or age Extension is $25,000 at each de- (c) a profit or loss computation; scribed premises or within 1,000 feet thereof and $5,000 while in transit or to its factual existence. prove temporarily at your home or at a prem- The most we will pay under this Cover- ise you do not own, lease or operate. age Extension is $25,000 at each de- This amount is in addition to the Limits scribed premises or within 1,000 feet of Insurance. thereof and $10,000 in transit or tempo- rarily at your home or at a premises you 6. The following Coverage Extensions are do not own, lease or operate. added: This amount is in addition to the Limits a. Accounts Receivable oflnsurance. You may extend the insurance that ap- b. Business Computer plies to Business Personal Property to apply to loss or damage by a Covered (1) You may extend the insurance that Cause of Loss to your accounts receiv- applies under A.1.b., Business able records including those on elec- Personal Property, to loss or dam- tronic data processing media. age by a Covered Cause of Loss to (1) We will pay: the following types of property used in your data processing operations (a) Amounts due from your cus- at a location described in the Decla- tomers that you are unable to rations: collect because of loss or dam- (a) Equipment. Your electronic data age to your accounts receivable processing equipment, facsimile records; machines, word processors, (b) Interest charges on any loan re- multi-functional telephone sys- quired to offset amounts you are tems, laptop and portable com- unable to collect because of puters; related surge protection loss or damage to your ac- devices; and their component counts receivable records, parts and peripherals. pending our payment of these (b) Data and Media. Your data amounts; stored on disks, films, tapes or (c) Collection expenses in excess similar electronic data process- of your normal collection ex- ing media; the media itself; penses that are made neces- computer programs and instruc- sary by the loss; and tions; and similar property of (d) Other reasonable expenses that others in your care, custody or you incur to re-establish your control. records of accounts receivable. (c) Duplicate Data and Media. We (2) We will not pay for loss or damage will pay for loss to duplicates of under this Coverage Extension covered Data and Media while caused by or resulting from any of stored in a separate building at the following: least 1,000 feet from a location described in the Declarations. (a) Bookkeeping, accounting or billing errors or omissions; or (2) We will pay for accidental loss or damage to the equipment covered (b) Electrical or magnetic injury, by this form while at a location disturbance or erasure of elec- shown in the Declarations if the ac- tronic recording except as a re- cidental loss or damage is caused sult of a direct loss caused by by a Covered Cause of Loss, in- lightning. cluding any of the following: (3) We will not pay for loss or damage (a) Mechanical breakdown of cov- that requires: ered equipment while at a loca- (a) an audit of records; tion described in the Declara- MP T9 77 01 00 Page 3 of 6 BUSINESSOWNERS tions. But we will not pay for loss to such equipment if caused by or resulting from any change in electrical power or other utility service, such as fail- ure, fluctuation or interruption, if that change originates more that 1,000 feet from the building containing the equipment. (b) Corrosion, rust, dampness, dry- ness, cold, heat or humidity re- sulting directly from damage to the air conditioning or heating system that services your data processing equipment. The damage to such systems must be caused by a Covered Cause of Loss. The most we will pay under this Cover- age Extension is $25,000. This amount is in addition to the Limits of Insurance. c. Exhibitions You may extend the insurance that ap- plies to Business Personal Property to apply to loss or damage by a Covered Cause of Loss to Business Personal Property temporarily at exhibitions or displays on a premises you do not own, lease or operate. The most we will pay under this Cover- age Extension is $25,000 at each exhi- bition and $10,000 in transit. This amount is in addition to the Limits oflnsurance. d. Fine Arts You may extend the insurance that ap- plies to Business Personal Property to apply to loss or damage by a Covered Cause of Loss to "Fine Arts" at the premises described in the Declarations. The most we will pay under this Exten- sion is $10,000 at each described premises. The Breakage Limitation contained in Section A.5.c.(2) of the Businessowners Property Coverage Special Form does not apply to this Fine Arts Extension. "Fine Arts" means paintings, etchings, pictures, tapestries, art glass windows, valuable rugs, statuary, marbles, bronzes, antique furniture, rare books, antique sliver, manuscripts, porcelains, rare glass, bric-a-brac and similar prop- erty of rarity, historical value, or artistic merit. The following is added to PROPERTY LOSS CONDITIONS - E.4.e.(4)(d) with respect to "Fine Arts": We will determine the value of Fine Arts as follows: Works of art, antiques or rare articles at the lesser of: (1) Market value at the time and place of loss; (2) Cost of reasonably restoring that property; or (3) Replacing that property with sub- stantially the same property. This amount is in addition to the Limits of Insurance. e. Sales Representative's Samples You may extend the insurance that ap- plies to your Business Personal Prop- erty to apply to: (1) Samples of your stock in trade (in- cluding containers); and (2) Similar property of others; While such property is in the custody of your sales representatives, or agents, or yourself while acting as a sales repre- sentative, or while in transit between your premises and your sales repre- sentative. The most we will pay for loss or damage under this coverage extension is $25,000 for property in the custody of any one sales representative. 7. The following Additional Coverages are added when Business Income is included: a. Business Income From Dependent Properties (1) We will pay for the actual loss of Business Income you sustain and necessary Extra Expense due to the necessary "suspension" of your "operations" during the "period of restoration". The suspension must be caused by direct physical loss or damage caused by or resulting from a Covered Cause of Loss at the premises of "dependent property" located in the coverage territory. Page 4 of 6 MP T9 77 01 00 BUSINESSQWNERS "Dependent Property" means prop- erty operated by others you depend on to: (a) Deliver materials or services (other than water, communica- tions or power supply) to you, or to others for your account (Con- tributing Locations); (b) Accept your products or serv- ices (Recipient Locations); (c) Manufacture products for deliv- ery to your customers under contract of sale (Manufacturing Locations); or (d) Attract customers to your busi- ness (Leader Locations). (2) The Period of Restoration definition, with respect to "dependent prop- erty", is replaced by the following: "Period of Restoration" means the period of time that: (a) Begins 24 hours after the time of direct physical loss or dam- age caused by or resulting from any Covered 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. (3) "Period of restoration" does not in- clude any enforcement of any in- creased 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, contain, treat, detoxify or neutralize, or in any way re- spond to, or assess the effects of "pollutants". The most we will pay under this ad- ditional coverage is $25,000. b. Ordinance or Law - Increased "Pe- riod of Restoration" (1) If a Covered Cause of Loss occurs to property at the premises de- scribed in the Declarations, Busi- ness Income coverage is extended to include the amount of actual and necessary loss you sustain during the increased period of suspension of "operations" caused by or result- ing from the enforcement of an ordi- nance or law that: (a) Regulates the construction or repair of any property; and (b) Is in force at the time of loss. However, coverage is not extended to include loss caused by or result- ing from the enforcement of any or- dinance 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", and asbestos whether or not such asbestos is deemed to be a "pollutant". (2) We will not pay under this coverage for loss due to any ordinance or law which: (a) You were required to comply with before the loss, even it the building was undamaged; and (b) You failed to comply with. The most we will pay for loss under this additional coverage is $25,000 in any one occurrence. c. Utility Services - Time Element We will pay for loss of Business Income and/or Extra Expense you sustain due to the necessary "suspension" of your "op- erations" during the "period of restora- tion" as a result of direct physical loss or damage by a Covered Cause of Loss to property not at the premises described in the Declarations but used to supply you with services by the following utilities: (1) Water Supply Services, meaning the following types of property supplying water to the described premises: (a) Pumping stations; and (b) Water mains. MP T9 77 01 00 Page 5 of 6 BUSINESSOWNERS (2) Communication Supply Services, plying electricity, steam or gas to the meaning property supplying com- described premises: munications services, including (a) Utility generating plants; telephone, radio, microwave, or television services to the described (b) Switching stations; premises, such as: (c) Substations; (a) Communication transmission (d) Transformers; and lines except overhead transmis- (e) Transmission lines, except sion lines including fiber optic overhead transmission lines transmission lines; . (b) Coaxial cables; and The most we will pay is $2,500 for loss you sustain after the first 24 hours fol- (c) Microwave radio relays, except lowing the direct physical loss or dam- satellites. age by a Covered Cause of Loss that (3) Power Supply Services, meaning disrupted the services provided by the the following types of property sup- utility companies described above. Page 6 of 6 MP T9 77 01 00 BUSINESSOWNERS THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PENNSYLVANIA CHANGES This endorsement modifies insurance provided under the following: BUSINESSOWNERS PROPERTY COVERAGE SPECIAL FORM Additional Coverage Employee Dishonesty is changed by deletion of provision A.6.d.(5)(a) which reads as follows: (5) We will not pay for loss resulting from the dishonest acts of any "employee": (a) If coverage for that employee was either cancelled or excluded from any previous insurance policy of yours providing employee dishonesty coverage. MP T4 66 01 00 Page 1 of 1 GENERAL LIABILITY TravelersP uo LgCasualty & w?ma?e7YUVelenGroup GENERAL LIABILITY DECLARATIONS PREMIUM SCHEDULE Issue Date: 09-24-02 Policy Number: I-680-3793A531-TIL-02 This Schedule applies to the Declarations for the period of 09-14-02 to 09-14-03 . It shows all of your known rating classes as of the effective date. Any exceptions will be so noted. This includes all locations you own, rent or occupy. LOC/ CLASS PREMIUM OPN BLDG DESCRIPT/ BASE/ ADVANCE NO. NO. CODE NO. SUBLINE EXPOSURE RATES PREMIUM 01 01 NON-DURABLE GOODS A - MEDIUM HAZARD s 1,000,000 .319 $ 319 01 01 DURABLE GOODS A - MEDIUM HAZARD 5 4,000,000 .702 ' This class is subject to the transition program. If an 'r is entered in this box, these Declarations are completed on the Premium Schedule Extension CG TO 12. Premium Base Legend: Premium Base a = area c = cost e = employees m = admissions p = payroll How Rates Apply per 1000 sq. feet per $1000 of total cost per employee per 1000 of admissions per $1000 of payroll 2,808 Premium Base How Rates Apply s = gross sales per $1000 of gross sales u = units per unit t = This premium base is reserved for unusual applications. Base and how rates apply are shown above. CG TO 07 03 96 Page 1 of 1 TABLE OF CONTENTS COMMERCIAL GENERAL LIABILITY COVERAGE FORM (CG 00 01 10 93) SECTION 1--COVERAGES Beginning on Page Coverage A-- Bodily Injury and Property Damage Liability Coverage B-- Personal and Advertising Injury Liability Coverage C-- Medical Payments Supplementary Payments SECTION II--WHO IS AN INSURED...... SECTION 111--LIMITS OF INSURANCE Insuring Agreement .....................................................1 Exclusions ........ ...................... ............................................ 1 Insuring Agreement .....................................................4 Exclusions Insuring Agreement .....................................................4 Exclusions ..........................................................................5 SECTION IV--COMMERCIAL GENERAL LIABILITY CONDITIONS Bankruptcy ...................................................................................................................................... ....................................... r Duties in the Event of Occurrence, Claim or Suit ................................................. ........................................7 Legal Action Against Us .......................................................................................................... .......................................7 Other Insurance...........- ...................................................................................._.-_-_.._....._. ........................................8 Premium Audit .............................................................................................................................. ........................................8 Representations-,_..... ............................................................................................................... ........................................8 Separation of Insureds. .............. ......... ........... .... _ ..................... ..................................... ....................................... 8 Transfer of Rights of Recovery Against Others To Us ...................................... ........................................9 When We Do Not Renew ........................................................................................................ .................. .. ....9 SECTION V--DEFINITIONS CG TO 3410 93 COMMERCIAL GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations, and any other person or organization qualifying as a Named Insured under this policy. The words "we," "usand "our" refer to the company providing this insurance. The word "insured" means any person or organization qualifying as such under WHO IS AN INSURED (SECTION 11). Other words and phrases that appear in quotation marks have special meaning. Refer to DEFINITIONS (SEC- TION V). SECTION I - COVERAGES COVERAGE A. BODILY INJURY AND PROPERTY DAMAGE LIABILITY 2. Exclusions. This insurance does not apply to: a. Expected or Intended Injury 1. Insuring Agreement. a. We will pay those sums that the insured be- comes legally obligated to pay as damages because of "bodily injury" or "property dam- age" to which this insurance applies. We will have the right and duty to defend any "suit" seeking those damages. We may at our dis- cretion investigate any "occurrence" and set- tle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in LIMITS OF IN- SURANCE (SECTION III); and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverages A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under SUPPLEMEW TARY PAYMENTS - COVERAGES A AND B. b. This insurance applies to "bodily injury" and "property damage" only if: (1) The "bodily injury" or "property damage" is caused by an "occurrence" that takes place in the "coverage territory"; and (2) The "bodily injury" or "property damage" occurs during the policy period. "Bodily injury" or "property damage" expected or intended from the standpoint of the in- sured. This exclusion does not apply to "bod- ily injury" resulting from the use of reason- able force to protect persons or property. b. Contractual Liability "Bodily injury" or "property damage" for which the insured is obligated to pay damages by reason of the assumption of liability in a con- tract or agreement. This exclusion does not apply to liability for damages: (1) 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; or (2) That the insured would have in the ab- sence of the contract or agreement. 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 intoxication 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 re- lating to the sale, gift, distribution or use of alcoholic beverages. c. Damages because of "'bodily injury" include This exclusion applies only if you are in the damages claimed by any person or organi- business of manufacturing distributing, sell- zation for care, loss of services or death re- ing, serving or furnishing alcoholic bever- sulting at any time from the "bodily injury." ages. CG 00 01 10 93 Copyright, Insurance Services Office, Inc., 1992 Page 1 of 11 COMMERCIAL GENERAL LIABILITY d. Workers Compensation and Similar Laws Any obligation of the insured under a workers compensation, disability benefits or unem- ployment compensation law or any similar 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 (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 pol- lutants: (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; (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, proc- essing 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 any insured or any person or organization for whom you may be legally responsible; or (d) At or from any premises, site or loca- tion on which any insured or any contractors or subcontractors work- ing directly or indirectly on any in- sured's behalf are performing opera- tions: (i) if the pollutants are brought on or to the premises, site or location in connection with such opera- tions by such insured, contractor or subcontractor: or (ii) if the operations are to test for, monitor, clean up, remove, con- tain, treat, detoxify or neutralize, or in any way respond to, or as- sess the effects of pollutants. Subparagraphs (a) and (d)(i) do not ap- ply to "bodily injury" or "property dam- age" arising out of heat, smoke or fumes from a hostile fire. As used in this exclusion, a hostile fire means one which becomes uncontrolla- ble or breaks out from where it was in- tended to be. (2) 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 as- sessing the effects of pollutants. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes mate- rials to be recycled, reconditioned or re- claimed. g. Aircraft, Auto or Watercraft "Bodily injury" or "property damage" arising out of the ownership, maintenance, use or entrustment to others of any aircraft, "auto" or watercraft owned or operated by or rented or loaned to any insured. Use includes op- eration and "loading or unloading." This exclusion does not apply to: (1) A watercraft while ashore on premises you own or rent; (2) A watercraft you do not own that is: (a) Less than 26 feet long; and Page 2 of 11 Copyright, Insurance Services Office, Inc., 1992 CG 00 01 10 93 COMMERCIAL GENERAL LIABILITY (b) Not being used to carry persons or property for a charge; (3) Parking an "auto" on, or on the ways next to, premises you own or rent, provided the "auto" is not owned by or rented or loaned to you or the insured; (4) Liability assumed under any "insured contract" for the ownership, maintenance or use of aircraft or watercraft; or (5) "Bodily injury" or "property damage" arising out of the operation of any of the equipment listed in paragraph f.(2) or f.(3) of the definition of "mobile equip- ment". 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. L 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 assumed under a contract or agreement. j. Damage to Property "Property damage" to: (1) Property you own, rent, or occupy; (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 contractors or subcon- tractors working directly or indirectly on your behalf are 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 performed on it. 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 exclu- sion do not apply to liability assumed under a sidetrack agreement. Paragraph (6) of this exclusion does not ap- ply to "property damage" included in the "products-completed operations hazard." k. Damage to Your Product "Property damage" to "your product" arising out of it or any part of it. f. 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." This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor. m. Damage to Impaired Property or Property Not Physically Injured "Property damage" to "impaired property" or property that has not been physically injured 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. n. Recall of Products, Work or Impaired Prop- erty 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"; CG 00 01 10 93 Copyright, Insurance Services Office, Inc., 1992 Page 3 of 11 COMMERCIAL GENERAL LIABILITY 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. Exclusions c. through n. do not apply to damage by fire to premises while rented to you or tempo- rarily occupied by you with permission of the owner. A separate limit of insurance applies to this coverage as described in LIMITS OF IN- SURANCE (SECTION III). COVERAGE B. PERSONAL AND ADVERTISING INJURY LIABILITY 1. Insuring Agreement. a. We will pay those sums that the insured be- comes legally obligated to pay as damages because of "personal injury" or "advertising injury" to which this insurance applies. We will have the right and duty to defend any "suit" seeking those damages. We may at our discretion investigate any "occurrence" or offense and settle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in LIMITS OF IN- SURANCE (SECTION III); and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverage A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under SUPPLEMEN- TARY PAYMENTS - COVERAGES A AND B. b. This insurance applies to: (1) "Personal injury" caused by an offense arising out of your business, excluding advertising, publishing, broadcasting or telecasting done by or for you; (2) "Advertising injury" caused by an offense committed in the course of advertising your goods, products or services; but only if the offense was committed in the "coverage territory" during the policy period. 2. Exclusions. This insurance does not apply to: a. "Personal injury" or "advertising injury": (1) Arising out of oral or written publication of material, if done by or at the direction of the insured with knowledge of its falsity; (2) Arising out of oral or written publication of material whose first publication took place before the beginning of the policy period; (3) Arising out of the willful violation of a pe- nal statute or ordinance committed by or with the consent of the insured; or (4) For which the insured has assumed liabi- lity in a contract or agreement. This ex- clusion does not apply to liability for damages that the insured would have in the absence of the contract or agree- ment. b. "Advertising injury"' arising out of: (1) Breach of contract, other than misappro- priation of advertising ideas under an im- plied contract; (2) The failure of goods, products or services to conform with advertised quality or performance; (3) The wrong description of the price of goods, products or services; or (4) An offense committed by an insured whose business is advertising, broad- casting, publishing or telecasting. COVERAGE C. MEDICAL PAYMENTS 1. Insuring Agreement. 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: (1) The accident takes place in the "cover- age territory" and during the policy pe- riod; (2) The expenses are incurred and reported to us within one year of the date of the accident; and (3) The injured person submits to examina- tion, at our expense, by physicians of our choice as often as we reasonably re- quire. b. We will make these payments regardless of fault. These payments will not exceed the Page 4 of 11 Copyright, Insurance Services Office, Inc., 1992 CG 00 01 10 93 COMMERCIAL GENERAL LIABILITY applicable limit of insurance. We will pay rea- sonable expenses for: (1) First aid administered at the time of an accident; (2) Necessary medical, surgical, x-ray and dental services, including prosthetic de- vices; and (3) Necessary ambulance, hospital, profes- sional nursing and funeral services. 2. Exclusions. We will not pay expenses for "bodily injury": a. To any insured. 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 injury" are payable or must be provided under a workers compensation or disability benefits law or a similar law. e. To a person injured while taking part in ath- letics. f. Included within the "products-completed op- erations hazard." g. Excluded under Coverage A. h. Due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. SUPPLEMENTARY PAYMENTS - COVERAGES A AND B We will pay with respect to any claim or "suit" we defend: 1. All expenses we incur. 2. Up to $250 for cost of bail bonds required be- cause of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Liability Coverage applies. We do not have to furnish these bonds. 3. The cost of bonds to release attachments, but only for bond amounts within the applicable limit of insurance. We do not have to furnish these bonds. 4. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit," including actual loss of earnings up to $100 a day because of time off from work. 5. All costs taxed against the insured in the "suit." 6. Prejudgment interest awarded against the in- sured on that part of the judgment we pay. If we make an offer to pay the applicable limit of insur- ance, we will not pay any prejudgment interest based on that period of time after the offer. 7. All interest on the full amount of any judgment that accrues after entry of the judgment and be- fore we have paid, offered to pay, or deposited in court the part of the judgment that is within the applicable limit of insurance. These payments will not reduce the limits of insur- ance. SECTION II - WHO IS AN INSURED 1. If you are designated in the Declarations as: a. An individual, you and your spouse are in- sureds, but only with respect to the conduct of a business of which you are the sole owner. b. A partnership or joint venture, you are an in- sured. Your members, your partners, and their spouses are also insureds, but only with respect to the conduct of your business. c. An organization other than a partnership or joint venture, you are an insured. Your "ex- ecutive officers" and directors are insureds, but only with respect to their duties as your officers or directors. Your stockholders are also insureds, but only with respect to their liability as stockholders. 2. Each of the following is also an insured: a. Your "employees," other than your "executive officers," but only for acts within the scope of their employment by you or while performing duties related to the conduct of your busi- ness. However, no "employee" is an insured for: (1) "Bodily injury" or "personal injury": (a) To you, to your partners or members (if you are a partnership or joint venture), or to a co-"employee" while in the course of his or her employ- ment or while performing duties re- lated to the conduct of your busi- ness; (b) To the spouse, child, parent, brother or sister of that co-"employee" as a consequence of paragraph (1)(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 paragraphs (1)(a) or (b) above; or CG 00 01 10 93 Copyright, Insurance Services Office, Inc., 1992 Page 5 of 11 COMMERCIAL GENERAL LIABILITY (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 purpose by you, any of your "employees" or, if you are a partnership or joint venture, by any partner or member. b. Any person (other than your "employee"), 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 Coverage Part. a. Coverage under this provision is afforded only until the 90th day after you acquire or form the organization or the end of the policy period, whichever is earlier; b. Coverage A does not apply to "bodily injury" or "property damage" that occurred before you acquired or formed the organization; and c. Coverage B does not apply to "personal in- jury" or "advertising injury" arising out of an offense committed before you acquired or formed the organization. No person or organization is an insured with respect to the conduct of any current or past partnership or joint venture that is not shown as a Named Insured in the Declarations. SECTION III - LIMITS OF INSURANCE 1. The Limits of Insurance shown in the Declara- tions and the rules below 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 General Aggregate Limit is the most we will pay for the sum of: a. Medical expenses under Coverage C; 3. With respect to "mobile equipment" registered in your name under any motor vehicle registration law, any person is an insured while driving such equipment along a public highway with your per- mission. Any other person or organization re- sponsible for the conduct of such person is also an insured, but only with respect to liability 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 re- spect to: a. "Bodily injury" to a co-"employee" of the per- son 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 in- sured under this provision. 4. Any organization you newly acquire or form, other than a partnership or joint venture, and over which you maintain ownership or majority inter- est, will qualify as a Named Insured if there is no other similar insurance available to that organiza- tion. However: b. Damages under Coverage A, except dam- ages because of "bodily injury" or "property damage" included in the "products-completed operations hazard"; and c. Damages under Coverage B. 3. The Products-Completed Operations Aggregate Limit is the most we will pay under Coverage A for damages because of "bodily injury" and "property damage" included in the "products- completed operations hazard." 4, Subject to 2, above, the Personal and Advertising Injury Limit is the most we will pay under Cover- age B for the sum of all damages because of all "personal injury" and all "'advertising injury" sus- tained by any one person or organization. 5. Subject to 2. or 3. above, whichever applies, the Each Occurrence Limit is the most we will pay for the sum of: a. Damages under Coverage A; and b. Medical expenses under Coverage C because of all "bodily injury" and "property dam- age" arising out of any one "occurrence." Page 6 of 11 Copyright, Insurance Services Office, Inc., 1992 CG 00 01 10 93 COMMERCIAL GENERAL LIABILITY 6. Subject to 5. above, the Fire Damage Limit is the most we will pay under Coverage A 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. 7. Subject to 5. above, the Medical Expense Limit is the most we will pay under Coverage C for all medical expenses because of "bodily injury" sustained by any one person. The Limits of Insurance of this Coverage Part apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for pur- poses of determining the Limits of Insurance. SECTION IV - COMMERCIAL GENERAL LIABIL- ITY CONDITIONS 1. Bankruptcy. Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obliga- tions under this Coverage Part. 2. Duties In The Event Of 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 no- tice of the claim or "suit" as soon as practica- ble. c. You and any other involved insured must: (1) Immediately send us copies of any de- mands, notices, summonses or legal pa- pers received in connection with the claim or "suit"; (2) Authorize us to obtain records and other information; (3) Cooperate with us in the investigation, settlement or defense of the claim or "suit"; and (4) Assist us, upon our request, in the en- forcement of any right against any per- son or organization which may be liable to the insured because of injury or dam- age to which this insurance may also ap- ply. d. No insureds will, except at their own cost, voluntarily make a payment, assume any ob- ligation, or incur any expense, other than for first aid, without our consent. 3. Legal Action Against Us. No person or organization has a right under this Coverage Part: a. To join us as a party or otherwise bring us into a "suit" asking for damages from an in- sured; or b. To sue us on this Coverage Part unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured obtained after an actual trial; but we will not be liable for damages that are not payable under the terms of this Coverage Part or that are in excess of the applicable limit of insur- ance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal repre- sentative. 4. Other Insurance. If other valid and collectible insurance is available to the insured for a loss we cover under Cover- ages A orB of this Coverage Part, our obligations are limited as follows: a. Primary Insurance This insurance is primary except when b. below applies. If this insurance is primary, our obligations are not affected unless any of the other insurance is also primary. Then, we will share with all that other insurance by the method described in c. below. CG 00 01 10 93 Copyright, Insurance Services Office, Inc., 1992 Page 7 of 11 COMMERCIAL GENERAL LIABILITY b. Excess Insurance This insurance is excess over any of the other insurance, whether primary, excess, contingent or on any other basis: (1) That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for "your work"(2) That is Fire insurance for premises rented to you; or (3) If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to Exclusion g. of Coverage A (Section 1). When this insurance is excess, we will have no duty under Coverage A or B to defend any claim or "suit" that any other insurer has a duty to defend. If no other insurer defends, we will undertake to do so, but we will be en- titled to the insured's rights against all those other insurers. 5. Premium Audit. a. We will compute all premiums for this Cover- age Part in accordance with our rules and rates. b. Premium shown in this Coverage Part as ad- vance premium is a deposit premium only. At the close of each audit period we will com- pute the earned premium for that period. Audit premiums are due and payable on no- tice to the first Named Insured. If the sum of the advance and audit premiums paid for the policy period is greater than the earned pre- mium, we will return the excess to the first Named Insured. c. The first Named Insured must keep records of the information we need for premium com- putation, and send us copies at such times as we may request. 6. Representations. By accepting this policy, you agree: When this insurance is excess over other in- surance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of: (1) The total amount that all such other in- surance would pay for the loss in the ab- sence of this insurance; and (2) The total of all deductible and self- insured amounts under all that other in- surance. We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations of this Coverage Part. c. Method of Sharing If all of the other insurance permits contribu- tion by equal shares, we will follow this method also. Under this approach each in- surer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first. If any of the other insurance does not permit contribution by equal shares, we will contrib- ute by limits. Under this method, each in- surer's share is based on the ratio of its ap- plicable limit of insurance to the total applicable limits of insurance of all insurers. a. The statements in the Declarations are accu- rate and complete; b. Those statements are based upon repre- sentations you made to us; and c. We have issued this policy in reliance upon your representations. 7. Separation Of Insureds. Except with respect to the Limits of Insurance, and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this 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. 8. Transfer Of Rights Of Recovery Against Others To Us. If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are transferred to us. The in- sured must do nothing after loss to impair them. At our request, the insured will bring "suit" or transfer those rights to us and help us enforce them. 9. When We Do Not Renew. If we decide not to renew this Coverage Part, we will mail or deliver to the first Named Insured shown in the Declarations written notice of the nonrenewal not less than 30 days before the ex- piration date. Page 8 of 11 Copyright, Insurance Services Office, Inc., 1992 CG 00 01 10 93 COMMERCIAL GENERAL LIABILITY If notice is mailed, proof of mailing will be suffi- 7. "Impaired property" means tangible property, cient proof of notice. other than "your product" or "your work," that SECTION V - DEFINITIONS cannot be used or is less useful because: 1. "Advertising injury" means injury arising out of a. It incorporates "your product" or "your work" one or more of the following offenses: that is known or thought to be defective, defi- cient, inadequate or dangerous; or a. Oral or written publication of material that You have failed to fulfill the terms of a con- b slanders or libels a person or organization or ' ' . tract or agreement; s or organization s disparages a person goods, products or services; if such property can be restored to use by: b. Oral or written publication of material that a. The repair, replacement, adjustment or re- violates a person's right of privacy; moval of "your product" or "your work"; or c. Misappropriation of advertising ideas or style b. Your fulfilling the terms of the contract or of doing business; or agreement. d. Infringement of copyright, title or slogan. 8. "Insured contract" means: 2. "Auto" means a land motor vehicle, trailer or a. A contract for a lease of premises. However, semitrailer designed for travel on public roads, that portion of the contract for a lease of including any attached machinery or equipment. premises that indemnifies any person or or- But "auto" does not include "mobile equipment." ganization for damage by fire to premises to you or temporarily occupied while rented 3. "Bodily injury" means bodily injury, sickness or by you with permission of the owner is not an disease sustained by a person, including death "insured contract"; resulting from any of these at any time. b. A sidetrack agreement; 4. "Coverage territory" means: c. Any easement or license agreement, except a. The United States of America (including its in connection with construction or demolition territories and possessions), Puerto Rico and operations on or within 50 feet of a railroad; Canada; d. An obligation, as required by ordinance, to b. International waters or airspace, provided the indemnify a municipality, except in connec- injury or damage does not occur in the tion with work for a municipality; course of travel or transportation to or from e. An elevator maintenance agreement; any place not included in a. above; or C. All parts of the world if: I. That part of any other contract or agreement pertaining to your business (including an in- (1) The injury or damage arises out of: demnification of a municipality in connection (a) Goods or products made or sold by with work performed for a municipality) under you in the territory described in a. which you assume the tort liability of another above; or party to pay for "bodily injury" or "property (b) The activities of a person whose damage" to a third person or organization. Tort liability means a liability that would be home in the territory described in imposed by law in the absence of any con- a. above, but is away for a short time tract or agreement. on your business; and Paragraph f, does not include that part of any (2) The insured's responsibility to pay dam- contract or agreement: ages is determined in a "suit" on the merits, in the territory described in a. (1) That indemnifies a railroad for "bodily injury" above or in a settlement we agree to. or "property damage" arising out of construc- tion or demolition operations, within 50 feet of 5. "Employee" includes a "leased worker." "Em- any railroad property and affecting any rail- ployee" does not include a "temporary worker." road bridge or trestle, tracks, road-beds, tun- 6. "Executive officer" means a person holding any nel, underpass or crossing; of the officer positions created by your charter, (2) That indemnifies an architect, engineer or constitution, by-laws or any other similar govern- surveyor for injury or damage arising out of: ing document. CG 00 01 10 93 Copyright, Insurance Services Office, Inc., 1992 Page 9 of 11 COMMERCIAL GENERAL LIABILITY (a) Preparing, approving or failing to prepare or approve maps, drawings, opinions, re- ports, surveys, change orders, designs or specifications; or (b) Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or damage; or (3) Under which the insured, if an architect, en- gineer or surveyor, assumes liability for an injury or damage arising out of the insured's rendering or failure to render professional services, including those listed in (2) above and supervisory, inspection or engineering services. 9. "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 perform duties related to the conduct of your business. "Leased worker" does not include a "temporary worker." 10. "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, wa- tercraft or "auto" to the place where it is fi- nally delivered; but "loading or unloading" does not include the movement of property by means of a mechanical device, other than a hand truck, that is not at- tached to the aircraft, watercraft or "auto." 11. "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, maintained primarily to provide mobility to 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 a., b., c, or d. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the fol- lowing 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 a., b., c. or d. above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not "mobile equipment" but will be considered "autos": (1) Equipment designed primarily for: (a) Snow removal; (b) Road maintenance but not construc- tion or surfacing; 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. 12. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions. 13. "Personal injury" means injury, other than "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 by or on behalf of its owner, landlord or lessor, d. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; or e. Oral or written publication of material that violates a person's right of privacy. Page 10 of 11 Copyright, Insurance Services Office, Inc., 1992 CG 00 01 10 93 COMMERCIAL GENERAL LIABILITY 14. a. "Products-completed operations hazard" 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. b. "Your work" will be deemed completed at the earliest of the following times: (1) When all of the work called for in your contract has been completed. (2) When all of the work to be done at the site has been completed if your contract calls for work at more than one site. (3) When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or subcontractor working on the same project. Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. c. This hazard 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 condition in or on a vehicle created by the "loading or unloading" of it; (2) The existence of tools, uninstalled equipment or abandoned or unused ma- terials; or (3) Products or operations for which the classification in this Coverage Part or in our manual of rules includes products or completed operations. 15. "Property damage" means: a. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or D. 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 "Occur- rence" that caused it. 16. "Suit" means a civil proceeding in which dam- ages because of "bodily injury," "property dam- age," 'personal injury' or "advertising injury" to which this insurance applies are alleged. "Suit" includes: a. An arbitration proceeding in which such damages are claimed and to which you must submit or do submit with our consent; or b. Any other alternative dispute resolution pro- ceeding in which such damages are claimed and to which you submit with our consent. 17. "Your product" means: a. Any goods or products, other than real prop- erty, manufactured, sold, handled, distributed or disposed of by: (1) You; (2) Others trading under your name; or (3) A person or organization whose business or assets you have acquired; and b. Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. "Your product" includes: a. Warranties or representations made at any time with respect to the fitness, quality, dura- bility, performance or use of "your product"; and b. The providing of or failure to provide wam- ings or instructions. "Your product" does not include vending ma- chines or other property rented to or located for the use of others but not sold. 18. "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. 19. "Your work" means: a. Work or operations performed by you or on your behalf; and b. Materials, parts or equipment furnished in connection with such work or operations. "Your work" includes: a. Warranties or representations made at any time with respect to the fitness, quality, dura- bility, performance or use of "your work; and b. The providing of or failure to provide wam- ings or instructions. CG 00 01 10 93 Copyright, Insurance Services Office, Inc., 1992 Page 11 of 11 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDMENT OF INSURING AGREEMENT-- KNOWN INJURY OR DAMAGE This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART (OCCURRENCE VERSION) Paragraph 1. Insuring Agreement of Section I - Coverage A - Bodily Injury And Property Damage Liability is replaced by the following: 1. Insuring Agreement a. We will pay those sums that the insured be- comes legally obligated to pay as damages because of "bodily injury" or "property dam- age" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "bodily injury" or "property damage" to which this insurance does not apply. We may, at our discretion, investigate any "oc- currence" and settle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in Section III - Limit Of Insurance; and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverages A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Supplementary Payments - Coverages A and B. b. This insurance applies to "bodily injury" and "property damage" only if: (1) The "bodily injury" or "property damage" is caused by an "occurrence" that takes place in the "coverage territory"; (2) The "bodily injury" or "property damage" occurs during the policy period; and (3) Prior to the policy period, no insured listed under Paragraph 1. of Section II - Who Is An Insured and no "employee" authorized by you to give or receive no- tice of an "occurrence" or claim, knew that the "bodify injury" or "property dam- age" had occurred, in whole or in part. If such a listed insured or authorized "em- ployee" knew, prior to the policy period, that the "bodily injury" or "property dam- age" occurred, then any continuation, change or resumption of such "bodily in- jury" or "property damage" during or after the policy period will be deemed to have been known prior to the policy period. c. "Bodily injury" or "property damage" which occurs during the policy period and was not, prior to the policy period, known to have oc- curred by any insured listed under Paragraph 1. of Section II - Who Is An Insured or any "employee" authorized by you to give or re- ceive notice of an "occurrence" or claim, in- cludes any continuation, change or resump- tion of that "bodily injury" or "property damage" after the end of the policy period. d. "Bodily injury" or "property damage" will be deemed to have been known to have oc- curred at the earliest time when any insured listed under Paragraph 1. of Section 11 - Who Is An Insured or any "employee" authorized by you to give or receive notice of an "occur- rence" or claim: (1) Reports all, or any part, of the "bodily in- jury" or "property damage" to us or any other insurer; (2) Receives a written or verbal demand or claim for damages because of the "bodily injury" or "property damage"; or (3) Becomes aware by any other means that "bodily injury" or "property damage" has occurred or has begun to occur. e. Damages because of "bodily injury" include damages claimed by any person or organiza- tion for care, loss of services or death result- ing at any time from the "bodily injury". CG 00 57 09 99 Copyright, Insurance Services Office, Inc., 1998 Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CHANGES IN COMMERCIAL GENERAL LIABILITY COVERAGE FORM This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART PROVISIONS b. "Bodily injury" or "property damage" for A. Paragraph 1.a. of COVERAGE A. - BODILY IN- which the insured is obligated to pay dam- JURY AND PROPERTY DAMAGE LIABILITY ages by reason of the assumption of li- (Section I - Coverages) is deleted and replaced ability in a contract or agreement. This ex- by the following: clusion does not apply to liability for damages: 1. Insuring Agreement (1) That the insured would have in the a. We will pay those sums that the insured absence of the contract or agree- becomes legally obligated to pay as dam- ment; or ages because of "bodily injury" or "prop- erty damage" to which this insurance ap- (2) Assumed in a contract or agreement plies. We will have the right and duty to that is an "insured contract" provided defend the insured against any "suit" the "bodily injury" or "property dam- seeking those damages. However, we will age" occurs subsequent to the execu- have no duty to defend the insured tion of the contract or agreement. against any "suit" seeking damages for Solely for the purposes of liability as- "bodily injury" or "property damage" to sumed in an "insured contract", rea- which this insurance does not apply. We sonable attorney fees and necessary may, at our discretion, investigate any litigation expenses incurred by or for "occurrence" and settle any claim or "suit" a parry other than an insured are that may result. But: deemed to be damages because of (1) The amount we will pay for damages "bodily injury" or "property damage", provided: is limited as described in LIMITS OF INSURANCE (SECTION III); and (a) Liability such y to party for, or for the cost of, that party's defense (2) Our right and duty to defend end has also been assumed in the when we have used up the applicable same "insured contract"; and limit of insurance in the payment of judgments or settlements under Cov- (b) Such attorney fees and litigation enders A or B or medical expenses expenses are for defense that under Coverage C. parry against a civil or alternative No other obligation or liability to pay sums dispute resolution proceeding in which damages to which this in- or perform acts or services is covered un- surance applies are alleged. less explicitly provided for under SUP- PLEMENTARY PAYMENTS - COVER- C. Paragraph 1.a. of COVERAGE B. - PERSONAL AGES A AND B. AND ADVERTISING INJURY LIABILITY (Section B. Paragraph 2.b. of COVERAGE A. - BODILY IN- I - Coverages) is deleted and replaced by the following: JURY AND PROPERTY DAMAGE LIABILITY (Section I - Coverages) is deleted and replaced 1. Insuring Agreement by the following: a. We will pay those sums that the insured 2. Exclusions becomes legally obligated to pay as dam- ages because of "personal injury" or "ad- This insurance does not apply to: vertising injury" to which this insurance CG 13119411 97 Copyright, Travelers Indemnity Company, 1997 Page 1 of 5 COMMERCIAL GENERAL LIABILITY applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "personal injury" or "advertising injury" to which this insurance does not apply. We may, at our discretion, investigate any "occurrence" or offense and settle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in LIMITS OF INSURANCE (SECTION III); and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Cov- erages A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered un- less explicitly provided for under SUP- PLEMENTARY PAYMENTS - COVER- AGES A AND B. E. SUPPLEMENTARY PAYMENTS -COVERAGES A AND B (Section I - Coverages) is amended as follows: 1. The first sentence is deleted and replaced by the following: We will pay, with respect to any claim we in- vestigate or settle, or any "suit" against an insured we defend: 2. Paragraph 4. is deleted and replaced by the following: 4. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual loss of earnings up to $250 a day because of time off from work. 3. The following is added: D. The following is added to Paragraph 2. Exclusions of COVERAGE B. - PERSONAL AND ADVER- TISING INJURY LIABILITY (Section I - Cover- ages): (This insurance does not apply to:) 1. "Personal injury" or "advertising injury" arising out of the actual, alleged or threatened dis- charge, dispersal, seepage, migration, release or escape of pollutants at any time. 2. Any loss, cost or expense arising out of any: a. Request, demand or order that any in- sured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutral- ize, or in any way respond to, or assess the effects of pollutants; or b. Claim or suit by or on behalf of a govern- mental authority for damages because of testing for, monitoring, cleaning up, re- moving, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of pollutants. If we defend an insured against a "suit" and an indemnitee of the insured is also named as a party to the "suit", we will defend that indem- nitee if all of the following conditions are met: a. The "suit" against the indemnitee seeks damages for which the insured has as- sumed the liability of the indemnitee in a contract or agreement that is an "insured contract"b. This insurance applies to such liability as- sumed by the insured; c. The obligation to defend, or the cost of the defense of, that indemnitee, has also been assumed by the insured in the same "insured contract"; d. The allegations in the "suit" and the infor- mation we know about the "occurrence" are such that no conflict appears to exist between the interests of the insured and the interests of the indemnitee: e. The indemnitee and the insured ask us to conduct and control the defense of that indemnitee against such "suit" and we agree that we can assign the same coun- sel to defend the insured and the indemni- tee; and f. The indemnitee: Pollutants means any solid, liquid, gaseous or (1) Agrees in writing to: thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and (a) Cooperate with us in the invesf gation waste. Waste includes materials to be recycled, the , settlement or defense o of reconditioned or reclaimed. the "s s uit"; Page 2 of 5 Copyright, Travelers Indemnity Company, 1997 CG D1 9411 97 COMMERCIAL GENERAL LIABILITY (b) Immediately send us copies of any demands, notices, sum- monses or legal papers received in connection with the "suit"; (c) Notify any other insurer whose coverage is available to the in- demnitee; and (d) Cooperate with us with respect to coordinating other applicable in- surance available to the indemni- tee; and (2) Provides us with written authorization to: (a) Obtain records and other informa- tion related to the "suit"; and (b) Conduct and control the defense of the indemnitee in such "suit". So long as the above conditions are met, at- torneys fees incurred by us in the defense of that indemnitee, necessary litigation expenses incurred by us and necessary litigation ex- penses incurred by the indemnitee at our re- quest will be paid as Supplementary Payments. Notwithstanding the provisions of paragraph 2.b.(2) of COVERAGE A -- BOD- ILY INJURY AND PROPERTY DAMAGE LI- ABILITY (Section I -- Coverages), such payments will not be deemed to be damages for "bodily injury" and "property damage" and will not reduce the limits of insurance. Our obligation to defend an insured's indemni- tee and to pay for attorneys fees and neces- sary litigation expenses as Supplementary Payments ends when: a. We have used up the applicable limit of insurance in the payment of judgments or settlements; or b. The conditions set forth above, or the terms of the agreement described in para- graph f. above, are no longer met. F. WHO IS AN INSURED (Section II) is amended as follows in order to specifically include Limited Li- ability Companies: 1. Paragraphs 1. and 2.a, are deleted and re- placed by the following: the conduct of a business of which you are the sole owner. b. A partnership or joint venture, you are an insured. Your members, your part- ners, and their spouses are also in- sureds, but only with respect to the conduct of your business. c. A limited liability company, you are an insured. Your members are also in- sureds, but only with respect to the conduct of your business. Your man- agers are insureds, but only with re- spect to their duties as your managers. d. An organization other than a partner- ship, joint venture or limited liability company, you are an insured. Your "executive officers" and directors are insureds, but only with respect to their duties as your officers or directors. Your stockholders are also insureds, but only with respect to their liability as stockholders. 2. Each of the following is also an insured: a. Your "employees", other than either your "executive officers" (if you are an organization other than a partnership, joint venture or limited liability com- pany) or your managers (if you are a limited liability company), but only for acts within the scope of their employ- ment by you or while performing du- ties related to the conduct of your business. However. none of these "employees" is an insured for., (1) "Bodily injury" or "personal injury" (a) To you, to your partners or members (if you are a part- nership or joint venture), to your members (if you are a limited liability company), or to a co-"employee" while that co-"employee" is either in the course of his or her employ- ment or performing duties re- lated to the conduct of your business; 1. If you are designated in the Declarations (b) To the spouse , child, parent, as: brother or sister of that co- a. An individual, you and your spouse ."employee" as a conse- are insureds, but only with respect to CG D1 94 11 97 Copyright, Travelers Indemnity Company, 1997 Page 3 of 5 COMMERCIAL GENERAL LIABILITY quence of paragraph (1)(a) above; (c) For which there is any obliga- tion to share damages with or repay someone else who must pay damages because of the injury described in paragraphs (1)(a) or (b) above; or (d) Arising out of his or her pro- viding or failing to provide professional health care serv- ices. (2) "Property damage" to property; (a) Owned, occupied or used by, (b) Rented to, in the care, cus- tody or control of, or over which physical control is be- ing exercised for any purpose by you, any of your "employees", any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). 2. The first sentence of paragraph 4. is deleted and replaced by the following: Any organization you newly acquire or form, other than a partnership, joint venture or lim- ited liability company, and over which you maintain ownership or majority interest, will quality as a Named insured if there is no other similar insurance available to that organiza- tion. However: 3. The final paragraph is deleted and replaced by the following: No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named In- sured in the Declarations. G. Condition 2. Duties In The Event Of Occurrence, Offense, Claim or Suit (Section IV - Commercial General Liability Conditions) is amended as fol- lows: 1. Paragraph c.(3) is deleted and replaced by the following: c. You and any other involved insured must: (3) Cooperate with us in the investigation or settlement of the claim or defense against the "suit"; and 2. Paragraph d. is deleted and replaced by the following: d. No insured will, except at that insured's own cost, voluntarily make a payment, as- sume any obligation, or incur any ex- pense, other than for first aid, without our consent. H. Condition 4. Other Insurance (Section IV - Com- mercial General Liability Conditions) is amended as follows: The first two paragraphs of paragraph b. are de- leted and replaced by the following: b. Excess Insurance This insurance is excess over any of the other insurance, whether primary, excess, contin- gent or on any other basis: (1) That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for "your work"; (2) That is Fire insurance for premises rented to you or temporarily occupied by you with permission of the owner; or (3) If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to Exclusion g. of Coverage A (Section I - Coverages). When this insurance is excess, we will have no duty under Coverages A or B to defend the insured against any "suit" if any other insurer has a duty to defend the insured against that "suit". If no other insurer defends, we will un- dertake to do so, but we will be entitled to the insured's rights against all those other insur- ers. 1. DEFINITIONS (Section V) is amended as follows: 1. Definition 8. "insured contract" is amended as follows: a. Subpart f.(2)(a) is deleted and replaced by the following: (a) Preparing, approving, or failing to pre- pare or approve maps, shop draw- ings, opinions, reports, surveys, field orders, change orders or drawings and specifications; or Page 4 of 5 Copyright, Travelers Indemnity Company, 1997 CG D1 9411 97 COMMERCIAL GENERAL LIABILITY b. Subpart f.(3) is deleted and replaced by the following: (3) Under which the insured, if an archi- tect, engineer or surveyor, assumes liability for injury or damage arising out of the insured's rendering or fail- ing to render professional services, including those listed in (2) above and supervisory, inspection, architectural or engineering activities. 2. Definition 14. "products-completed operations hazard" is amended as follows: Paragraph c.(1) is deleted and replaced by the following: c. This hazard does not include "bodily in- jury" or "property damage" arising out of: (1) The transportation of property, unless the injury or damage arises out of a condition in or on a vehicle not owned or operated by you, and that condition was created by the "loading or un- loading" of that vehicle by any in- sured; 3. Definition 16. "suit" is deleted and replaced by the following: "Suit" means a civil proceeding in which dam- ages because of "bodily injury", "property damage", "personal injury" or "advertising in- jury" to which this insurance applies are al- leged. "Suit" includes: a. An arbitration proceeding in which such damages are claimed and to which the insured 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. CG D7 94 11 97 Copyright, Travelers Indemnity Company, 1997 Page 5 of 5 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WEB XTEND-LIABILITY This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART PROVISIONS COVERAGE B. PERSONAL AND ADVERTISING INJURY LIABILITY (SECTION I - COVERAGES) is deleted in its entirety and replaced by the following: COVERAGE B. PERSONAL INJURY, ADVERTIS- ING INJURY AND WEB SITE INJURY LIABILITY 1. Insuring Agreement. (3) "Web site injury" caused by an offense committed in the course of the visual or audio presentation of material on "your web site" or in the numerical expression of computer code used to enable "your web site"; but only if the offense was committed in the "coverage territory" during the policy period. a. We will pay those sums that the insured be- comes legally obligated to pay as damages because of "personal injury", "advertising in- jury" or "web site injury" to which this insur- ance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "personal in- jury", "advertising injury", or "web site injury" to which this insurance does not apply. We may at our discretion investigate any "occur- rence" or offense and settle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in LIMITS OF IN- SURANCE (SECTION - III); and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverage A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless ex- plicitly provided for under SUPPLEMENTARY PAYMENTS - COVERAGES A AND B. b. This insurance applies to: (1) "Personal injury" caused by an offense arising out of your business, excluding advertising, publishing, broadcasting or telecasting done by or for you; (2) "Advertising injury" caused by an offense committed in the course of advertising your goods, products or services; or 2. Exclusions. This insurance does not apply to: a. "Personal injury", "advertising injury" or "web site injury": (1) Arising out of oral, written or electronic publication of material, if done by or at the direction of the insured with knowl- edge of its falsity; (2) Arising out of oral, written or electronic publication of material whose first publi- cation took place before the beginning of the policy period; (3) Arising out of the willful violation of a pe- nal statute or ordinance committed by or with the consent of the insured; or (4) Arising out of the actual, alleged or threatened discharge, dispersal, seep- age, migration, release or escape of "pollutants" at any time. b. Any loss, cost or expense arising out of any (1) Request, demand or order that any in- sured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants; or (2) Claim or "suit" by or on behalf of a gov- ernmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxify- ing or neutralizing or in any way re- sponding to, or assessing the effects of, pollutants. CG D2 34 02 01 Copyright, The Travelers Indemnity Company, 2001 Page 1 of 3 COMMERCIAL GENERAL LIABILITY Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materi- als to be recycled, reconditioned or re- claimed. c. "Personal injury" for which the insured has assumed liability in a contract or agreement. This exclusion does not apply to liability: (1) Assumed in a contract or agreement that is an "insured contract", provided the "personal injury" arises out of an offense committed subsequent to the execution of the contract or agreement; or (2) That the insured would have in the ab- sence of the contract or agreement. d. "Advertising injury" arising out of: (1) Breach of contract; (2) The failure of goods, products or services to conform with advertised quality or performance; (3) The wrong description of the price of goods, products or services; (4) An offense committed by an insured whose business is advertising, broad- casting, publishing or telecasting; or (5) For which the insured has assumed li- ability 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. e. "Web site injury": (1) arising out of: (a) Breach of contract; (b) The failure of goods, products or services to conform with advertised quality or performance; (c) The wrong description of the price of goods, products or services; (d) Dishonest, fraudulent, criminal or malicious acts, errors or omissions committed by any insured, or by any- one for whom the insured is legally responsible, whether acting alone or with others; (e) An offense committed by any insured whose business is providing access to intellectual property of others via "your web site". (f) The hosting of an electronic chat- room or bulletin board. (2) expected or intended by any insured. SECTION II - WHO IS AN INSURED The introductory sentence of paragraph 2. a. (1) Section 11 - Who Is An Insured is deleted and re- placed by the following: 2. a. (1) "Bodily injury", "personal injury" or "web site injury": Section II - Who Is An Insured, paragraph 4. c., is deleted and replaced by the following: 4. c. Coverage B does not apply to "personal injury", "advertising injury" or "web site injury" arising out of an offense committed before you acquired or formed the organization. SECTION III - LIMITS OF INSURANCE SECTION III - Limits Of Insurance, paragraph 4, is deleted and replaced by the following: 4. Subject to 2. above; the Personal, Advertising and Web Site Injury Limit is the most we will pay under Coverage B for the sum of all damages because of all "personal injury", "advertising in- jury" and all "web site injury" sustained by any one person or organization. SECTION V - DEFINITIONS ADVERTISING INJURY The definition of "Advertising injury" (SECTION V - DEFINITIONS) is deleted in its entirety and re- placed by the following: 1. "Advertising injury" means injury, arising out of one or more of the following offenses: a. Oral; written or electronic publication of mate- rial that slanders or libels a person or organi- zation or disparages a person's or organiza- tion's goods, products or services; b. Oral, written or electronic publication of mate- rial that violates a person's right of privacy; c. Infringement of copyright, title or slogan. COVERAGE TERRITORY The definition of "Coverage Territory", (SECTION V - DEFINITIONS) is deleted in its entirety and re- placed by the following: a. The United States of America (including its territories and possessions), Puerto Rico and Canada; Page 2 of 3 Copyright, The Travelers Indemnity Company, 2001 CG D2 34 02 01 COMMERCIAL GENERAL LIABILITY 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 a. above;or c. All parts of the world if: (1) The injury or damage arises out of: (a) Goods or products made or sold by you in the territory described in a. above; (b) The activities of a person whose home is in the territory described in a. above, but who is away for a short time on your business; or (c) "Personal injury", "advertising injury", and "web site injury" offenses that take place through the Internet or similar electronic means of communication; and (2) The insured's responsibility to pay damages is determined in a "suit" on the merits, in the territory described in a. above or in a settle- ment we agree to. INSURED CONTRACT Subparagraph I. of the definition of "Insured Con- tract" (SECTION V - DEFINITIONS) is deleted and replaced by the following: f. That part of any other contract or agreement pertaining to your business (including an indem- nification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another party to pay for "bodily injury", "property damage" or "per- sonal injury" to a third party or organization. Tort liability means a liability that would be imposed by law in the absence of any contract or agree- ment. PERSONAL INJURY The definition of "Personal injury" (SECTION V - DEFINITIONS) is deleted in its entirety and replaced by the following: "Personal injury" means injury, other than "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 occupancy of a room, dwelling or premises that a person occu- pies by or on behalf of its owner, landlord or les- sor; d. Oral, written or electronic publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; or e. Oral, written or electronic publication of material that violates a person's right of privacy. SUIT The definition of "Suit" (SECTION V - DEFINI- TIONS) is deleted in its entirety and replaced by the following: "Suit" means a civil proceeding in which damages because of "bodily injury", "property damage", "per- sonal injury", "advertising injury" or "web site injury" to which this insurance applies are alleged. "Suit" includes: a, An arbitration proceeding in which such damages are claimed and to which you must submit or do submit with our consent; or b. Any other alternative dispute resolution proceed- ing in which such damages are claimed and to which you submit with our consent. The following definitions are added to SECTION V - DEFINITIONS WEB SITE INJURY "Web site injury", means injury, other than "personal injury" or "advertising injury", arising out of one or more of the following offenses: a. Oral, written or electronic publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; b. Oral, written or electronic publication of material that violates a person's right of privacy; C. Oral, written or electronic publication of material that violates a person's right of publicity; or d. Infringement of copyright, title or slogan. YOUR WEB SITE "Your web site" means all computer files and data which may be accessed via the Internet using a Universal Resource Locator that includes any domain name owned by or assigned to you. CG D2 34 02 01 Copyright, The Travelers Indemnity Company, 2001 Page 3 of 3 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EMPLOYMENT-RELATED PRACTICES EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART A. The following exclusion is added to paragraph 2., B. The following exclusion is added to paragraph 2., Exclusions of COVERAGE A-BODILY INJURY Exclusions of COVERAGE B-PERSONAL AND AND PROPERTY DAMAGE LIABILITY (Section I - ADVERTISING INJURY LIABILITY (Section I - Coverages): Coverages): This insurance does not apply to: 1. "Bodily 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, polic- ies, acts or omissions, such as coer- cion, demotion, evaluation, reassign- ment, discipline, defamation, harass- ment, 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" to that person at whom any of the employment-related practices described in paragraphs (1), (2) or (3) above is directed. This exclusion applies a. whether the insured may be held 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 damages because of the injury. This insurance does not apply to: 1. "Personal 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, polic- ies, acts or omissions, such as coer- cion, demotion, evaluation, reassign- ment, discipline, defamation, harass- ment, humiliation, or discrimination directed at that person; or b. The spouse, child, parent, brother or sister of that person as a consequence of "personal injury" to that person at whom any of the employment-related practices described in paragraphs (1), (2) or (3) above is directed. 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 damages because of the injury. CG 21 47 10 93 Copyright, Insurance Services Offices, Inc., 1992 Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION - YEAR 2000 COMPUTER-RELATED AND OTHER ELECTRONIC PROBLEMS - PRODUCTS/COMPLETED OPERATIONS This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART The following exclusion is added to Paragraph 2., Exclusions of Section I - Bodily Injury And Property Damage Liability: 2. Exclusions This insurance does not apply to "bodily injury", or "property damage" included in the "products- completed operations hazard" definition and aris- ing directly or indirectly out of: a. Any actual or alleged failure, malfunction or inadequacy of: (1) Any of the following, whether belonging to any insured or to others: (a) Computer hardware, including micro- processors; (b) Computer application software; (c) Computer operating systems and re- lated software; (d) Computer networks; (e) Microprocessors (computer chips) not part of any computer system; or (f) Any other computerized or electronic equipment or components; or (2) Any other products, and any services, data or functions that directly or indirectly use or rely upon, in any manner, any of the items listed in Paragraph 2.a.(1) of this endorsement. due to the inability to correctly recognize, process, distinguish, interpret or accept the year 2000 and beyond. b. Any advice, consultation, design, evaluation, inspection, installation, maintenance, repair, replacement or supervision provided or done by you or for you to determine, rectify or test for, any potential or actual problems de- scribed in Paragraph 2.a. of this endorse- ment. CG 21 61 04 98 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION-DISCRIMINATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART PROVISIONS 1. COVERAGE A - BODILY INJURY AND PROP- ERTY DAMAGE LIABILITY - is amended by ad- ding the following additional exclusion: (This Insurance does not apply to:) "Bodily injury" resulting from or as a consequence of discrimination, whether intentional or uninten- tional, based upon a person's sex, sexual prefer- ence, marital status, race, creed, religion, na- tional origin, age, physical capabilities, character- istics or condition, or mental capabilities or con- dition. 2. COVERAGE B - PERSONAL AND ADVERTIS- ING INJURY LIABILITY - is amended by adding the following additional exclusion: (This insurance does not apply to:) "Personal injury" resulting from or as a conse- quence of discrimination, whether intentional or unintentional, based upon a person's sex, sexual preference, marital status, race, creed, religion, national origin, age, physical capabilities, charac- teristics or condition, or mental capabilities or condition. CG D1 42 01 99 Copyright, The Travelers Indemnity Company, 1999 Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDMENT OF POLLUTION EXCLUSION - EXCEPTION FOR BUILDING HEATING EQUIPMENT This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART Subparagraph (1)(a) of the Pollution exclusion under persal, seepage, migration, release or escape of Paragraph 2., Exclusions of Bodily Injury And pollutants: Property Damage Liability Coverage (Section I - (a) At or from any premises, site or location which Coverages) is replaced by the following: is or was at any time owned or occupied by, This insurance does not apply to: or rented or loaned to, any insured. POLLUTION (1) "Bodily injury" or "property damage" arising out of the actual, alleged or threatened discharge, dis- However, Subparagraph (a) does not apply to "bodily injury" if sustained within a building and caused by smoke, fumes, vapor or soot from equipment used to heat that building. CG D1 92 08 97 Copyright, Travelers Indemnity Company, 1997 Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION - WAR This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART A. Exclusion i. under Paragraph 2., Exclusions of B. The following exclusion is added to Paragraph 2., Section I - Coverage A - Bodily Injury And Exclusions of Section I - Coverage B - Per- Property Damage Liability is replaced by the sonal And Advertising Injury Liability: following: 2. Exclusions: 2. Exclusions: This insurance does not apply to: This insurance does not apply to: I. War "Bodily injury" or "property damage" aris- ing, 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 de- fending against an actual or expected attack, by any government, sovereign or other authority using military per- sonnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these regardless of any other cause or event that contributes concurrently or in any se- quence to the injury or damage. War "Personal injury" or "advertising injury" ads- ing, directly or indirectly, out of: (1) War, including undeclared or civil war; or (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 authority 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 regardless of any other cause or event that contributes concurrently or in any sequence to the injury. CG D2 42 01 02 Copyright, The Travelers Indemnity Company, 2002 Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION -AIRCRAFT PRODUCTS AND GROUNDING This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART PROVISIONS This insurance does not apply to "bodily injury" or "property damage" included within the "products- completed operations hazard" and arising out of any "aircraft product" or the "grounding" of any aircraft. "Aircraft product" means: 1. Aircraft (including missile or spacecraft, and any ground support or control equipment used therewith); and 2. Any article furnished by the insured and in- stalled in an aircraft or used in connection with an aircraft, or for spare parts for an aircraft, including ground handling tools and equipment; and 3. Any of "your products" used at an airport for the purpose of guidance, navigation or direc- tion of aircraft; and 4. Training aids, manuals, blueprints, engineer- ing or other data or advice, and services and labor relating to such aircraft, articles or products. "Grounding" means the withdrawal of one or more aircraft from flight operations or the imposi- tion of speed, passenger or load restrictions on such aircraft, by reason of the existence of or alleged or suspected existence of any defect, fault or condition in such aircraft or any part thereof sold, handled or distributed by the in- sured or manufactured, assembled or processed by any other person or organization according to specifications, plans, suggestions, orders, or drawings of the insured or with tools, machinery or other equipment furnished to such persons or organizations by the insured, whether such aircraft so withdrawn are owned or operated by the same or different persons, organizations or corporations. CG T3 23 09 96 Copyright, The Travelers Indemnity Company, 1996. Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION -ASBESTOS This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART RAILROAD PROTECTIVE LIABILITY COVERAGE PART CATASTROPHE UMBRELLA POLICY This insurance does not apply to "bodily injury," "property damage," "personal injury" or "advertising injury" arising out of the actual or alleged presence or actual, alleged or threatened dispersal of asbes- tos, asbestos fibers or products containing asbestos, provided that the injury or damage is caused or con- tributed to by the hazardous properties of asbestos. This includes: a. Any supervision, instructions, recommendations, warnings or advice given or which should have been given in connection with the above; and b. Any obligation to share damages with or repay someone else who must pay damages because of such injury or damage. CG T4 78 02 90 Copyright, The Travelers Indemnity Company. Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LIMITATION WHEN TWO OR MORE POLICIES APPLY This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART EMPLOYEE BENEFITS LIABILITY COVERAGE PART LIQUOR LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART PROVISIONS Injury, damage or loss might be covered by this policy and also by other policies issued to you by us or any affiliate. When these other policies contain a provision similar to this one, the amount we will pay is limited. The maximum that we will pay under all such policies combined is the highest limit that applies in any one of these policies. 2. This does not apply to any personal liability policy or to any policy with a policy number con- taining the letters CUP, EX, PRS, SPS, XS or IXL. CG T3 33 12 88 Page 1 of 1 INTERLINE ENDORSEMENTS TravelersProperkyCasualty Aum aRawlersrrroup INTERLINE ENDORSEMENTS THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT (Broad Form) This endorsement modifies Insurance provided under the following: BUSINESSOWNERS POLICY COMMERCIAL AUTO COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART FARM COVERAGE PART LIQUOR LIABILITY COVERAGE PART OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART PROFESSIONAL LIABILITY COVERAGE PART RAILROAD PROTECTIVE LIABILITY COVERAGE PART SPECIAL PROTECTIVE AND HIGHWAY LIABILITY POLICY NEW YORK DEPARTMENT OF TRANSPORTATION UNDERGROUND STORAGE TANK POLICY 1. The Insurance does not apply: A. Under any Liability Coverage, to "bodily in- jury" 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 Nuclear Energy Liability Insurance Asso- ciation, Mutual Atomic Energy Liability Underwriters, Nuclear Insurance Associa- tion of Canada or any of their successors, or would be an insured under any such policy but for its termination upon exhaus- tion of its limit of liability; or (2) Resulting from the "hazardous properties" of "nuclear material" and with respect to which (a) any person or organization is required 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 indem- nity from the United States of America, or any agency thereof, under any agreement entered into by the United States of Amer- ica, or any agency thereof, with any per- son or organization. B. Under any Medical Payments coverage, to expenses incurred with respect to "bodily in- jury" resulting from the "hazardous properties" of "nuclear material" and arising out of the operation of a "nuclear facility" by any person or organization. C. Under any Liability Coverage, to "bodily in- jury" or "property damage" resulting from "hazardous properties" of "nuclear material", if: (1) The "nuclear material" (a) is at any "nu- clear facility" owned by or operated by or on behalf of, an "insured" 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 (3) The "bodily injury" or "property damage" arises out of the furnishing by an "in- sured" of services, materials, parts or equipment in connection with the plan- ning, construction, maintenance, opera- tion or use of any "nuclear facility", but if such facility is located within the United States of America, its territories or pos- sessions or Canada, this exclusion (3) ap- plies only to "property damage" to such "nuclear facility" and any property thereat. IL 00 21 04 98 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 2 2. As used in this endorsement: "Hazardous properties" include radioactive, toxic or explosive properties; "Nuclear material" means "source material", "Spe- cial nuclear material" or "by-product material". "Source material", "special nuclear material", and "by-product material" have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; "Spent fuel" means any fuel element or fuel com- ponent, solid or liquid, which has been used or exposed to radiation in a "nuclear reactor". Waste" means any waste material (a) containing "by-product material" other than the tailings or wastes produced by the extraction or concentra- tion of uranium or thorium from any ore processed primarily for its "source material" content, and (b) resulting from the operation by any person or or- ganization of any "nuclear facility" included under the first two paragraphs of the definition of "nu- clear facility". "Nuclear facility" means: (a) Any "nuclear reactor"; (b) Any equipment or device designed or used for (1) separating the isotopes of uranium or plu- tonium, (2) processing or utilizing "spent fuel", or (3) handling, processing or packaging 'Waste' (c) Any equipment or device used for the proc- essing, fabricating or alloying of "special nu- clear material" if at any time the total amount of such material in the custody of the "in- sured" at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235; (d) Any structure, basin, excavation, premises or place prepared or used for the storage or dis- posal of "waste"; and includes the site on which any of the forego- ing is located, all operations conducted on such site and all premises used for such operations. "Nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self-support- ing chain reaction or to contain a critical mass of fissionable material. "Property damage" includes all forms of radioac- tive contamination of property. Page 2 of 2 Copyright, Insurance Services Office, Inc., 1997 IL 00 21 04 98 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PENNSYLVANIA CHANGES - ACTUAL CASH VALUE This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART COMMERCIAL CRIME COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART FARM COVERAGE PART STANDARD PROPERTY POLICY The following is added to any provision which uses the term actual cash value: Actual cash value is calculated as the amount it would cost to repair or replace Covered Property, at the time of loss or damage, with material of like kind and quality, subject to a deduction for deterioration, depreciation and obsolescence. Actual cash value applies to valuation of Covered Property regardless of whether that property has sustained partial or total loss or damage. The actual cash value of the lost or damaged property may be significantly less than its replacement cost. IL 01 66 01 99 Copyright, Insurance Services Office, Inc., 1998 Page 1 of 1 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PENNSYLVANIA CHANGES This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART COMMERCIAL CRIME COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART FARM COVERAGE PART A. For insurance provided under the: Boiler and Machinery Coverage Part Commercial Crime Coverage Part Commercial Inland Marine Coverage Part Commercial Property Coverage Part The TRANSFER OF YOUR RIGHTS AND DU- TIES UNDER THIS POLICY Common Policy Condition is replaced by the following: F. TRANSFER OF YOUR RIGHTS AND DU- TIES 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 legal rep- resentative is appointed, anyone having proper temporary custody of your property will have your rights and duties but only with re- spect to that property. If you die, this Coverage Part will remain in effect as provided in 1. or 2. below, whichever is later: 1. For 180 days after your death regardless of the policy period shown in the Declara- tions, unless the insured property is sold prior to that date; or 2. Until the end of the policy period shown in the Declarations, unless the insured 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 Declarations and any extension of that period. 3. For insurance provided under the: Commercial Inland Marine Coverage Part Commercial Property Coverage Part Farm Coverage Part The following is added to the LOSS PAYMENT Loss Condition and supersedes any provision to the contrary: NOTICE OF ACCEPTANCE OR DENIAL OF CLAIM 1. Except as provided in 3. below, we will give you notice, within 15 working days after we 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 denied. 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 pro- vided in 1.c. above, and thereafter every 45 days. The written notice will state why more time is needed to investigate your claim and when you may expect us to reach a decision on your claim 3. The notice procedures in 1. and 2. above do not apply if we have a reasonable basis, sup- ported by specific information, to suspect that an insured has fraudulently caused or con- tributed to the loss by arson or other illegal activity. Under such circumstances, we will notify you of the disposition of your claim within a period of time reasonable to allow full investigation of the claim, after we receive a properly executed proof of loss. 01721193 Copyright, Insurance Services Office, Inc., 1993 Page 1 of 1 Copyright, ISO Commercial Risk Services, Inc., 1993 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PENNSYLVANIA CHANGES - CANCELLATION AND NONRENEWAL This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART BUSINESSOWNERS POLICY COMMERCIAL AUTOMOBILE COVERAGE PART COMMERCIAL CRIME COVERAGE PART* COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART FARM COVERAGE PART LIQUOR LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART This endorsement does not apply to coverage provided for employee dishonesty (Coverage Form A), or public employee dishonesty (Coverage Forms O and P). A. The Cancellation Common Policy Condition is re- placed by the following: CANCELLATION 1. The first Named Insured shown in the Decla- rations may cancel this policy by writing or giving notice of cancellation. 2. Cancellation Of Policies In Effect For Less Than 60 Days We may cancel this policy by mailing or deliv- ering to the first Named Insured written notice of cancellation at least 30 days before the ef- fective date of cancellation. 3. Cancellation Of Policies In Effect For 60 Days Or More If this policy has been in effect for 60 days or more or if this policy is a renewal of a policy we issued, we may cancel this policy only for one or more of the following reasons: a. You have made a material misrepresenta- tion which affects the insurability of the risk. Notice of cancellation will be mailed or delivered at least 15 days before the effective date of cancellation. b. You have failed to pay a premium when due, whether the premium is payable di- rectly to us or our agents or indirectly un- der a premium finance plan or extension of credit. Notice of cancellation will be mailed at least 15 days before the effec- tive date of cancellation. c. A condition, factor or loss experience ma- terial to insurability has changed substan- tially or a substantial condition, factor or loss experience material- to insurability has become known during the policy pe- riod. Notice of cancellation will be mailed or delivered at least 60 days before the effective date of cancellation. d. Loss of reinsurance or a substantial de- crease in reinsurance has occurred, which loss or decrease, at the time of cancellation, shall be certified to the insur- ance Commissioner as directly affecting in-force policies. Notice of cancellation will be mailed or delivered at least 60 days before the effective date of cancellation. e. Material failure to comply with policy terms, conditions or contractual duties. Notice of cancellation will be mailed or de- livered at least 60 days before the effec- tive date of cancellation. f. Other reasons that the Insurance Com- missioner may approve. Notice of cancel- lation will be mailed or delivered at least 60 days before the effective date of can- cellation. IL 02 46 04 98 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 2 This policy may also be canceled from inception 7. If notice is mailed, it will be by registered or upon discovery that the policy was obtained first class mail. Proof of mailing will be suffi- through fraudulent statements, omissions or con- cient proof of notice. cealment of facts material to the acceptance of B. The following are added and supersede any provi- the risk or to the hazard assumed by us. sions to the contrary: 4. We will mail or deliver our notice to the first Named Insured's last mailing address known to us. Notice of cancellation will state the spe- cific reasons for cancellation. 5. Notice of cancellation will state the effective date of cancellation. The policy period will end on that date. 1. Nonrenewal If we decide not to renew this policy, we will mail or deliver written notice of nonrenewal; stating the specific reasons for nonrenewal, to the first Named Insured at least 60 days be- fore the expiration date of the policy. 2. Increase Of Premium 6. If this policy is cancelled, we will send the first Named Insured any premium refund due. If If we increase your renewal premium, we will we cancel, the refund will be pro rata and will mail or deliver to the first Named Insured writ- be returned within 10 business days after the ten notice of our intent to increase the pre- effective date of cancellation. If the first mium at least 30 days before the effective Named Insured cancels, the refund may be date of the premium increase. less than pro rata and will be returned within Any notice of nonrenewal or renewal premium in- 30 days after the effective date of cancella- crease will be mailed or delivered to the first Named tion. The cancellation will be effective even if Insured's last known address. If notice is mailed, it will we have not made or offered a refund. be by registered or first class mail. Proof of mailing will be sufficient proof of notice. Page 2 of 2 Copyright, Insurance Services Office, Inc., 1997 IL 02 46 04 98 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 insurance: 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 contrac- tors are judicially determined to constitute a crime, actual malice, or gross negligence. Instruction to Policy Writers Attach the Pennsylvania Notice to all new and renewal certificates insuring risks located in Pennsylvania. IL 09 10 07 02 0 ISO Properties, Inc., 2001 Page 1 of 1 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION OF CERTAIN COMPUTER-RELATED LOSSES DUE TO DATES OR TIMES This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE PART BOILER AND MACHINERY COVERAGE PART COMMERCIAL CRIME COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART A. We will not pay for loss ('loss") or damage caused directly or indirectly by the following. Such loss ('loss") or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss ('loss") or damage. 1. The failure, malfunction or inadequacy of: a. Any of the following, whether belonging to any insured or to others: (1) Computer hardware, including micro- processors; (2) Computer application software; (3) Computer operating systems and re- lated software; (4) Computer networks; (5) Microprocessors (computer chips) not part of any computer system; or (6) Any other computerized or electronic equipment or components; or b. Any other products, and any services, data or functions that directly or indirectly use or rely upon, in any manner, any of the items listed in Paragraph A.1.a. of this endorsement; due to the inability to correctly recognize, process, distinguish, interpret or accept one or C. more dates or times. An example is the inabil- ity of computer software to recognize the year 2000. 2. Any advice, consultation, design, evaluation, inspection, installation, maintenance, repair, replacement or supervision provided or done by you or for you to determine, rectify or test for, any potential or actual problems described in Paragraph A.1. of this endorsement. B. If an excluded Cause of Loss as described in Paragraph A. of this endorsement results: 1. In a Covered Cause of Loss under the Boiler And Machinery Coverage Part, the Commer- cial Crime Coverage Part, or the Commercial Inland Marine Coverage Part; or 2. Under the Businessowners Coverage Part: a. In a Covered Cause of Loss under the Businessowners Property Coverage Stan- dard Form, or in elevator collision result- ing from mechanical breakdown; b. In a "Specified Cause of Loss", under the Businessowners Property Coverage Spe- cial Form, in elevator collision resulting from mechanical breakdown, or from "Theft" of Covered Property, we will pay only for the loss ('loss") or damage caused by such Covered Cause of Loss, elevator collision, Covered Cause of Loss or "Theft". We will not pay for repair, replacement or modifi- cation of any items in Paragraphs A.t.a. and A.1.b. of this endorsement to correct any deficien- cies or change any features. IL T3 53 04 98 Includes Material Copyrighted by Page 1 of 1 Insurance Services Office POLICYHOLDER NOTICES TravdersPwM Ctsg y ?w„m7ruve7ersro up POLICYHOLDER NOTICES MASTER PAC POLICY ADVISORY NOTICE TO POLICYHOLDERS THIS IS NOT A POLICY ENDORSEMENT This is a summary of the major changes to the Master Pac policy. No coverage is provided by this summary nor can it be construed to replace any provision of your policy. You should read your policy and review your declara- tion page for complete information on the coverages you are provided. If there is any conflict between the policy and this summary, THE PROVISIONS OF THE POLICY SHALL PREVAIL. Contact your agent if you have any questions about your policy or if you desire any changes in your policy. Some of the language of the new policy has been restated and repunctuated for clarity and readability but with no change in coverage intent. The areas within the policy that broaden, reduce or clarify coverage are highlighted below. The material is organized by individual coverage forms and endorsements; however, not all coverage forms or endorsements are included in a particular policy. This summary does not include all possible endorsements that may be attached to your policy. A. BROADENED FEATURES OF THE STANDARD we will cover your property while temporarily AND SPECIAL BUSINESSOWNERS PROP- away from your premises has increased to 60 ERTY COVERAGE FORM days. 1. Lawn maintenance and snow removal equip- 7. The following changes were made to the ment and alarm systems have been added as Coverage Extension Newly Acquired or Con- personal property items used to maintain or structed Property: service your buildings or structures. (a) Coverage is no longer dependent on 2. The footage limitation on your building, per- having the building(s) insured; sonal property, and business income cover- (b) Coverage has been expanded to include age (if applicable) has increased from 100 additions while being built, newly ac- feet to 1,000 feet of the premises. quired premises including materials, 3. Your signs are now covered if they are within equipment, supplies and temporary 1,000 feet of the premises. structures, on or within 1,000 feet of the 4. Coverage Extension Appurtenant Buildings premises and buildings you are required and Structures has been added for incidental to insure under a written contract; buildings or structures, including Business (c) The restriction applicable to buildings, Personal Property within these buildings or has been deleted: "intended for: use structures for 10% of the Limit of Insurance similar to that of the building described in for Buildings and 10% of the Limit of Insur- the Declarations; or use as a warehouse ance for Business Personal Property shown for your Covered Property"; in your Declarations, but not more than (d) We have added coverage for newly ac- $50,000 in any one occurrence. quired business personal property at the 5. Increased Cost of Construction has been described building insured under the pol- added as an Additional Coverage to provide icy; limited coverage for the increased cost of (e) We have added coverage for business complying with building codes following cov- personal property at a newly constructed ered damage to each described building in- or acquired building at the insured loca- sured, up to $5,000. tion; and 6. Under the Business Personal Property Off- (f) The limit for business personal property Premises Extension of Coverage, transit cov- under this Extension has increased from erage now applies to and from your described $100,000 to $250,000. premises and while your property is at a fair, 8• The Outdoor Property Extension has been trade show or exhibition. The number of days revised to include "bridges". The $500 per PN T2 99 01 00 Page 1 of 7 tree, shrub or plant limitation has been elimi- nated. We have broadened the term lawns to include "including fairways, greens and tees". 9. The Legal Proceeding Exclusion has been deleted. 10. Coverage is now provided for Expediting Ex- penses up to $10,000 in any one occurrence. 11. The Exterior Building Glass Coverage Exten- sion has been revised to cover direct physical loss of or damage to glass, including glass breakage and damage to glass by chemicals accidentally or maliciously applied to glass. 12. If you are a tenant and Business Income is provided, we have expanded coverage for Business Income by defining your premises to include all areas within the buildings on the same parcel of land which provides essential services to conduct your operations as part of your premises. 13. Extended Business Income coverage has increased from 30 to 60 consecutive days. 14. The limit under the Business Income and Ex- tra Expense-Newly Acquired Extension of Coverage has increased from $100,000 to $250,000. 15. The deductible applicable to the Valuable Pa- pers Coverage Extension has been elimi- nated. 16. A Loss Payment condition stating that we may make a partial payment toward any claim to you at our option has been added. 17. Additional Coverage Preservation of Property has been revised to cover the cost to remove the property from the described premises. 18. The Claim Data Expense Extension of Cov- erage has been revised to include the costs of preparing income statements. 19. Under Property Not Covered, we have added an exception to back filling or filling to cover those costs made necessary due to repair or replacement of a building insured under this policy from a Covered Cause of Loss. 20. A Coverage Extension has been added to provide limited coverage on Non-Owned De- tached Trailers for up to $5,000. B. BROADENED FEATURES OF THE STANDARD BUSINESSOWNERS PROPERTY COVERAGE FORM ONLY 1. Breakage of Glass has been added as an Additional Coverage. 2. Coverage for Collapse is now provided. C. BROADENED FEATURES OF THE SPECIAL BUSINESSOWNERS PROPERTY COVERAGE FORM ONLY 1. The limitation applicable to jewelry, watches, watch movements, jewels, precious and semi-precious stones, bullion, gold, silver, platinum and other precious alloys or metals has increased from $2,500 to $5,000. 2. The exclusion for loss caused by insects, birds, rodents or other animals has been re- vised to specify that it only applies in situa- tions where loss is caused by nesting or in- festation, or discharge or release of waste products or secretions, by insects, birds, ro- dents or other animals. 3. The Collapse Additional Coverage is broad- ened to include coverage for collapse of per- sonal property in the absence of building col- lapse, under certain conditions. D. BROADENED FEATURES BY CLASS OF BUSINESS 1. If you are an Apartment owner or a Condo- minium Association, personal property used for maintaining and servicing pools and other recreational facilities on the premises are now included as Building property. 2. If you are an office risk, your Business In- come coverage is extended to automatically include Telephone, FAX or Facsimile inter- ruption. A 24-hour deductible applies. 3. If you are a manufacturing risk, the following revisions have been made: (a) The theft limitation for patterns, dies, molds and forms has increased from $25,000 to $50,000; (b) If branded or labeled merchandise is damaged by a Covered Cause of Loss and we acquire the merchandise as sal- vage, we will pay up to $25,000 for the reasonable costs you incur to stamp such merchandise as salvage material or the costs to relabel the merchandise as long as the new labels comply with the law; (c) We will pay the reduction in value of the remaining parts of "stock" in process of manufacture when the reduction is caused by direct physical loss or damage from a Covered Cause of Loss to other parts of "stock" in process of manufac- turer up to $25,000 in any one occur- rence; Page 2 of 7 PN T2 99 01 00 (d) Your Business Personal Property is ex- tended to apply to samples of your stock in trade while in the custody of your sales representatives up to $25,000 in the custody of any one sales representative; and (e) Your Business Personal Property is ex- tended to apply to that property while temporarily on display to the public at a premises you do not regularly occupy up to $25,000. 4. If you are a wholesaler, the following revi- sions have been made: (a) We have increased the limit on Sales Representative's Samples to $25,000. (b) We have increased the limit on Brands and Labels to $25,000. E. CLARIFICATION OR PROCEDURAL CHANGES IN THE STANDARD AND SPECIAL BUSINESS- OWNERS PROPERTY COVERAGE FORM 1. Under Property Not Covered, the term "bulk- heads" has been added. 2. Under Property Not Covered, we have added to land, water and growing crops, "whether in its natural state or otherwise", and to growing crops "standing timber". 3. Under Property Not Covered, we have rear- ranged Outdoor Property for clarification. The words "satellite dishes" have been added to clarify that satellite dishes are considered to be antennas. 4. Under covered Building property, the para- graphs pertaining to fixtures, machinery, equipment and outdoor fixtures are rear- ranged for clarification. The phrase "perma- nently installed" has been revised to "perma- nently attached" and continues to be used in describing machinery and equipment covered as part of the Building. 5. Under the Additional Coverage, Pollutant Cleanup, loss or damage must now be cov- ered property rather than property. 6. Business Personal Property has been revised to clarify that "Money" and "Securities" are in- cluded. 8. An explicit statement is added to clarify that Extended Business Income coverage applies only if the insured first sustains a Business Income Loss payable under the policy and a paragraph has been added to clarify that Ex- tended Business Income coverage does not cover reduced income due to unfavorable business conditions in the areas where the physical damage occurs. 9. Language is added to the "period of restora- tion" definition to clarify that an insured's re- sumption of operations at a new permanent location ends the "period of restoration". 10. Under the Loss Payment Condition for Busi- ness Income and Extra Expense, we have re- vised language to specify that the determina- tion of the Business Income loss does not in- clude any Net Income that would have been earned as a result of an increase in the vol- ume of business due to favorable business conditions caused by the impact of the Cov- ered Cause of Loss on customers or on other businesses. 11. The Duties in the Event of Loss or Damage Loss Condition has been revised to indicate that the insured must protect the property from any further damage, even if the cause of such damage would not be a covered cause of loss under the policy; and keep a record of all expenses incurred to protect the property, rather than only expenses related to tempo- rary and emergency repairs. Such expenses will be considered in the settlement of the claim. 12. Under the Mortgageholders Property Condi- tion, the term statement of loss is replaced with the term proof of loss. The term proof of loss more precisely conveys that the insured is required to provide substantiation of a loss. All references to mortgagee holder are re- vised to mortgageholder (one word). Language is added to the Ordinance or Law Exclusion to clarify that it applies with respect to damaged and undamaged property. This exclusion applies whether the ordinance or law is enforced in the absence of a physical loss at the insured premises, or following a physical loss to insured property; and applies to all property in the event of a physical loss at the insureds premises. The title of the "Off-Premises Services" ex- clusion is changed to "Utility Services" to more explicitly reflect the subject and the content of this exclusion. 13. 7. Under the Loss Payment Loss Condition, lan- guage is added to state that the cost to repair, rebuild or replace does not include the in- creased cost attributable to enforcement of 14. any ordinance or law regulating the construc- tion, use or repair of any property. PN T2 99 01 00 Page 3 of 7 15. Language has been added to the Definition of Water Damage to clarify that the covered cause of loss does not include discharge or leakage of water from a sump system. In ad- dition, the phrase "breaking or cracking" is re- vised to 'breaking apart or cracking' for clari- fication. 16. All of the Additional Coverages and Exten- sions of Coverage have been alphabetized in order to more easily locate the coverages and limits. 17. Under the Business Personal Property Off- Premises Extension of Coverage, we have clarified that coverage also applies to such property while temporarily displayed at a premises you do not own or regularly occupy. 18. The language of the Water Exclusion is re- vised for clarification, to add reference to a sump, which is a type of drainage system, and to add the term overflow. 19. The definition of "securities" has been revised to clarify that lottery tickets held for sale are not securities and therefore, are considered covered property. 20. The coverage grant for Collapse has now been moved to the Exclusions section of the policy where coverage is restored when it re- sults from a number of other specified causes of loss. 21. A definition of "suspension" of operations has been added to clarify that a suspension of operations means a partial or complete ces- sation of your business activities. 22. The Debris Removal Additional Coverage has been revised to clarify the provisions and show examples governing the amount of cov- erage afforded. 23. The Civil Authority Additional Coverage has been revised to clarify that direct physical loss of or damage to property must be within the jurisdiction invoking the civil authority and that the loss or damage must be caused by or re- sulting from a Covered Cause of Loss. F. CLARIFICATION OR PROCEDURAL CHANGES IN THE SPECIAL BUSINESSOWNERS PROP- ERTY COVERAGE FORM ONLY sewage overflow occurs due to a blockage which occurs on the described premises." 2. The Additional Coverage Employee Dishon- esty has been revised to clarify that coverage applies anywhere within the coverage terri- tory. 3. The Money Orders and Counterfeit Paper Currency Coverage Extension has been re- vised to clarify that the money orders apply to any U.S. or Canadian post office or express money order, issued or claiming to have been issued by any post office or express com- pany. Good faith acceptance of any money order or counterfeit money must be in ex- change for merchandise, money or services or as part of a normal business transaction. G. CLARIFICATION OR PROCEDURAL CHANGES IN THE STANDARD BUSINESSOWNERS PROPERTY COVERAGE FORM ONLY 1. We have revised the Water Damage peril to clarify that coverage responds only to losses which involve the breaking apart or cracking of a plumbing, heating, air conditioning or other system or appliance, that is located on the described premises. We have clarified that roof drains, gutters, downspouts or simi- lar fixtures or equipment are not covered systems under this Named peril. H. CLARIFICATION OR PROCEDURAL CHANGES BY CLASS OF BUSINESS 1. If you are a condominium association, Busi- ness Income has been revised to clarify that "Maintenance Fees" are included. 2. If you a contractor, we have clarified under the Business Personal Property Off Premises Extension that your coverage also applies to your Business Personal Property at an in- stallation site. 1. RESTRICTIVE FEATURES OF THE STANDARD AND SPECIAL BUSINESSOWNERS PROP- ERTY COVERAGE FORM 1. The filling, reclaiming or restoring water; piers, pilings, wharves or docks; and tunnels, whether or not connected to buildings have been added as Property and Costs Not Cov- ered. 1. We have revised the phrase, "Water back up, 2. We have revised the definition of pollutants to other than from a septic tank or cesspool, include any unhealthful or hazardous building when the cause of the water back up origi- materials (including but not limited to asbes- nates on the premises" to "Except for septic tos and lead products or materials containing tank and cesspool systems, this exclusion lead). does not apply when the cause of water or Page 4 of 7 PN T2 99 01 00 3. Additional Coverage Pollutant Cleanup and Removal has been revised so that the cover- age applies when the discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused by or results from a "specified causes of loss" and not a "Covered Cause of Loss". 4. If you have building coverage on your policy, the Exterior Building Glass deductible is now an unchangeable $250. 5. The Earth Movement Exclusion has been re- vised so that it applies to any earth move- ment, either natural or man-made. 6. We have added a new exclusion which ex- cludes neglect of an insured to use reason- able means to save and preserve property from further damage at and after the time of loss. 7. For insureds who are tenants the vacancy provisions will apply only when a tenants unit or suite is vacant (does not contain enough business personal property to conduct cus- tomary operations). In a multiple occupancy building, the condition of units other than the insured's unit will not be considered in deter- mining whether there is a condition of va- cancy. For insureds who are building owners, the vacancy provisions will apply unless at least 31% of its total square footage is rented or used by the building owner to conduct customary operations. 8. Coverage Extension Newly Acquired or Con- structed Property has been revised so that coverage for business personal property is only extended for the same type of property at a building you newly acquire at a location described in the Declaration or at any other location you acquire by purchase or lease. 9. Coverage is no longer provided for buildings or structures in the "state of imminent col- lapse" unless the "state of imminent collapse" is caused by one or more of the reasons listed in the coverage form. J. RESTRICTIVE FEATURES OF THE SPECIAL BUSINESSOWNERS PROPERTY COVERAGE FORM ONLY 1. The Limitation applicable to interior damage to any building or to personal property in the building has been revised to specify that we will not pay for loss to personal property in a building or structure caused by rain, snow, sleet, ice, sand or dust, unless the building or structure first sustains damage by a covered cause of loss, or unless loss results from thawing of snow, sleet or ice on the building or structure. (Note: This limitation is not appli- cable in FL, MA, ME, NH, NC, SC and RI). 2. Coverage no longer applies if mechanical breakdown results in a "specified causes of loss". However, we will pay for loss or dam- age if mechanical breakdown results in a fire or building glass breakage. 3. Forgery or Alteration Coverage, previously subject to the Business Personal Property Limit has been specifically added as an Addi- tional Coverage. The most we will pay is the limit for Business Personal Property stated in the Declarations or $250,000 (whichever is less). Depending on class of business, this limit may be reduced to $25,000. The limit will be the same as the Employee Dishonesty limit. 4. We have added leakage as an excluded cause of loss to personal property. K. RESTRICTIVE FEATURES BY CLASS OF BUSINESS 1. If you are a Condominium Association, we will cover fixtures, improvements and alterations that are a part of the building or structure and appliances contained within a unit, regardless of ownership, only if your Condominium As- sociation agreement requires you to insure it. Previously, this property contained within a unit was covered regardless of ownership. (Note: This restriction does not apply in FL and IL). 2. If you are a Condominium Association or an Apartment risk previously written under the Select Pac program, the Limits of Insurance applicable to Newly Acquired or Constructed Property is reduced to $250,000 for Buildings. 3. If you are a florist, the spoilage coverage automatically afforded under your policy is $5,000. Higher limits are available. 4. If your policy has Utility Services - Power Failure or Utility Services - Telephone, Fax or Facsimile coverage, we will pay the actual loss sustained from the initial time of service failure at your described premises but only when the service interruption at your de- scribed premises exceeds 24 hours immedi- ately following the direct physical loss or damage. PN T2 99 01 00 Page 5 of 7 OPTIONAL COVERAGES L. ORDINANCE OR LAW CLARIFICATION OF COVERAGE With respect to Coverage C, language is added to clarify that if relocation is required by ordinance or law, the increased cost of construction means the increased cost of constructing a building(s) at the new premises, subject to the Coverage C Limit of Insurance. REDUCTION OF COVERAGE Coverage is reduced by the addition of an exclu- sion which precludes coverage for pre-existing violations, where an insured was required to comply with an ordinance or law prior to loss, but violated such requirement. M POWER PAC/POWER PAC PLUS BROADENING OF COVERAGE 1. We have increased the most we will pay for Utility Services - Direct Damage from $1,000 to $2,500. 2. We have increased the most we will pay for Utility Services - Time Element from $1,000 to $2,500. Additionally, the hour deductible has been reduced from 48 consecutive hours to 24 consecutive hours. 3. We have increased, the most we will pay for your Newly Acquired or Constructed Building, Personal Property and Business Income (when Business Income is included) and Ex- tra Expense from $250,000 to $500,000. 4. We have increased the limit on Claim Data Expense from $1,000 to $5,000. 5. We have increased the limit on Business In- come (when Business Income is included) from Dependent Properties from $10,000 to $25,000. 6. We have increased the limit on Ordinance or Law - Increased "Period of Restoration" from $10,000 to $25,000 when Business Income is included. REDUCTION OF COVERAGE 1. A 24 hour deductible has been added to the Additional Coverage - Business Income from Dependent Properties. N. POWER PAC PLUS ADDITIONAL BROADENING OF COVERAGE 1. We have added Sales Representative's Sam- ples as an Extension of Coverage for $25,000. 2. We have added coverage for your Business Personal Property at Exhibitions for $25,000 and $10,000 in transit. 3. The theft limitation for all patterns, dies and molds has been changed to provide an addi- tional $50,000. 0. BUSINESS INCOME FROM DEPENDENT PROPERTIES REDUCTION OF COVERAGE Coverage now begins 24 hours after the time of direct physical loss or damage caused by or re- sulting from any Covered Cause of Loss at the premises of the "dependent property". P. SPOILAGE COVERAGE BROADENING OF COVERAGE Spoilage coverage has been broadened by in- cluding as Additional Coverages, your expenses to clean up and dispose of spoiled Covered Prop- erty and any reasonable expenses you incur to prevent or reduce loss or damage to the extent that such loss or damage is reduced. Coverage for these expenses is included within the Limit of Insurance for Spoilage. The deductible for spoilage will be separate from the policy deductible. A $250 mandatory deducti- ble will apply with higher deductible options avail- able. 0. BUILDING OWNERS AMENDATORY BROADENING OF COVERAGE 7. We have added Brands and Labels as an Additional Coverage for $25,000 in any one occurrence. 8. We have increased the limit on Ordinance or Law - Increased Cost of Construction or Re- pair from $10,000 to $25,000. 9. Business Computer has been broadened to include mechanical breakdown as a Covered Cause of Loss. Your Business income coverage has been broadened by extending the period of restoration to include any increased time necessary to com- ply with existing building laws regulating con- struction, repair, or tearing down of property. The most we will pay under this additional Coverage is 10% of the Building Limit of insurance or $100,000 whichever is less. PN T2 99 01 00 Page 6 of 7 R. UTILITY SERVICES-TIME ELEMENT REDUCTION OF COVERAGE Coverage now begins 24 hours after the time of direct physical loss or damage. S. SEWER OR DRAIN BACKUP REDUCTION IN COVERAGE This optional coverage has been revised to pro- vide a limit of $25,000. Coverage no longer fol- lows the limit of insurance for building and/or Business Personal Property. Higher limits of $50,000 and $100,000 are optionally available. T. VALUABLE PAPERS BROADENING OF COVERAGE The Limit of Insurance for valuable papers not at the described premises has been increased to $5,000. U. EATING ESTABLISHMENT ENDORSEMENT CLARIFICATION The Water Damage Extension has been revised to clarify that Business Income or Extra Expense does not apply to this Additional Coverage Exten- sion. V. EARTHQUAKE BROADENING/REDUCTION IN COVERAGE The Earthquake deductible has changed from a dollar deductible to a percentage deductible. The Earthquake deductible will now be subject to a Policy Occurrence Limit and an Annual Aggregate Limit. For the newly Acquired or Constructed Property and the Business Income and Extra Ex- pense-Newly Acquired Locations Extensions of Coverage, the most we will pay for Earthquake is $100,000 in any one occurrence and in any one policy year. PN T2 99 01 00 Page 7 of 7 C,, IN nV 1 i . j n rl Y•1 I?? C?- I 1 /28/2005 TO. COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PA. NO 05-5991 FROM WPG FASTENERS, INC AS DEFENSE TO SAID SUIT BROUGHT UPON OUR COMPANY, WE HAVE AND STILL ARE GIVING NOTICE TO "TRAVELERS INSURANCE THAT WE ARE WELL, WITHIN OUT RIGHTS TO SEE THE FINAL AUDIT FOR THE POLICY PERIOD AT TIME OF CANCELLATION. NOTING THE FOLLOWING A CRITERIA IN THE INCREASE AT CANCELLATION B. METHOD AND FORMULA USED IN ATTAINING SAID NUMBERS C LOSS RUNS FOR SAID POLICY PERIOD WE AT WPG HAD PAID ON TIME EACH AND EVERY INVOICE FROM TRAVELERS INSURANCE AND DO RESERVE THE RIGHT TO SEE INFORMATION ON THE JUSTIFICATION FOR THE FINAL AUDIT BILL. WE AT WPG FASTENERS HAVE AND WILL. ALWAYS TREAT EACH VENDOR WITH COMPLETE CANDOR AND HONESTY AND EXPECT THE SAME IN RETURN. WE BELIEVE TEIAT THE TRAVELERS INSURANCE COMPANY HAS ATTEMPTED TO PROFIT FROM OUR FINAL WORKERS COMP AUDIT BASED ON INCREASED SALARIES AND INCREASED SALES VOLUME;, BOTH OF WHICH COST TRAVELERS NO ADDITIONAL MONIES. WE ALSO ARE A BUSINESS AT"FEMPTING TO MAKE A PROFIT AND DO NOT LOOK KINDLY UPON INSURANCE COMPANIES WHO TAKE ADVANTAGE OF THEIR CUSTOMERS. SINCERFL.Y, DAVE OFTEN GENERAL MANAGER WPG FASTENRS, INC SHERIFF'S RETURN - REGULAR CASE NO: 2005-05991 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND TRAVELERS INDEMNITY COMPANY VS WPG FASTENERS INC SHANNON SHERTZER Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon WPG FASTENERS INC the DEFENDANT , at 1550:00 HOURS, on the 21st day of November , 2005 at 3617 SIMPSON FERRY ROAD CAMP HILL, PA 17011 by handing to ED HEARN, SALES MANAGER, ADULT IN CHARGE a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs Docketing 18.00 Service 13.44 Affidavit .00 Surcharge 10.00 .00 41.44 Sworn and Subscribed to before me this day of a261q A. D. Pro otary So Answers: R. Thomas Kline 11/22/2005 AMATO & MARGLE By: w-- Deputy Sheriff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW THE TRAVELERS INDEMNITY COMPANY OF AMERICA and THE TRAVELERS INDEMNITY COMPANY OF ILLINOIS Plaintiff No. 05-5991 Civil vs. WPG FASTENERS, INC. Defendant(s) CIVIL ACTION PLAINTIFF'S MOTION FOR JUDGMENT ON THE PLEADING The above Plaintiff, by and through its counsel Amato and Associates, P.C., files the within motion pursuant to Pa.R.C.P. 1034. 1. Plaintiff commenced this action by filing a complaint on November 18, 2005, a true and correct copy of which is attached hereto, made a part hereof, and marked Exhibit "A". 2. 3Defendant was served with said complaint and filed, on or about November 30, 2005, a pro se answer to the complaint a true and correct copy of which is attached hereto, made a part hereof, and marked Exhibit "B". 3. Defendant is a corporation and corporations must be represented by counsel and cannot represent themselves in court. 4. Defendant filed an Answer which is in contravention to Pa.R.C.P. No. 1029(b) in thatDefendant's Answer fails to specifically deny each averment in Plaintiffs complaint. 5. Defendant filed an answer in which they only make a general denial of the averments in Plaintiffs complaint. 6. General denials are deemed admissions. 7. Defendant's general denials are admissions of those facts set forth in the complaint. 8. If the complaint is deemed admitted than Plaintiff is entitled to judgment on the pleadings. 9. Plaintiff is entitled to judgment against the Defendant in the amount of $10,982.88. Wherefore, Plaintiff respectfully requests judgment in favor of Plaintiff and against the Defendant for $10,982.88. AMATO AND ASSOCIATES, P.C. By: Rona Amato, 45sq., Atty ID #32323 Michael J. Kennedy, Esq., Atty ID #72412 Attorneys for Plaintiff 107 North Commerce Way Bethlehem, PA 18017 (610) 866-0400 ?0?a 193 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW THE TRAVELERS INDEMNITY COMPANY OF AMERICA and THE TRAVELERS INDEMNITY COMPANY OF ILLINOIS Plaintiff No. d s - oil vs. WPG FASTENERS, INC. c g CIVIL ACTION -? = E5 ? Rl , m z,. Defendant NOTICE L .r 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, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. B? 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 Association 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 AMATO AND MARGLE, P. By: /"Ronald o, Esq., Atty ID #32323 Michael J. Kennedy, Esq., Atty ID #72412 Michael R. Lessa, Esq., Atty ID #88617 Attorneys for Plaintiff 107 North Commerce Way Bethlehem, PA 18017 (610) 866-0400 EXHIBIT COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW THE TRAVELERS INDEMNITY COMPANY OF AMERICA and THE TRAVELERS INDEMNITY COMPANY OF ILLINOIS Plaintiff No. VS. WPG FASTENERS, INC. CIVIL ACTION Defendant(s) COMPLAINT The above Plaintiff brings this action against the above Defendant to recover the sum of $10,982.88, with interest thereon as hereinafter stated, upon the following cause of action: 1. The Plaintiff, THE TRAVELERS INDEMNITY COMPANY OF AMERICA is located at One Hartford Square, Hartford CT 06183. 2. The Plaintiff, THE TRAVELERS INDEMNITY COMPANY OF ILLINOIS is located at One Hartford Square, Hartford CT 06183. 3. The causes of action have a common nucleus of operative fact in that Defendant was billed under a common account number by Plaintiffs and the Plaintiff's are related companies. A true and correct copy of Defendant's statement of account is attached hereto, made a part hereof, and marked Exhibit "A". 4. The Defendant, WPG FASTENERS, INC. is located at 3617 B, Simpson Ferry Road, CAMP HILL PA 17011-6407. COUNTI (The Travelers Indemnity Company of America vs. Defendant) Breach of Contract 5. At the special instance and request of Defendant, Plaintiff issued its Workers Compensation policy of insurance, naming Defendant as the insured, as fully described in the attached Policy, a true and correct copy of which is attached hereto, made a part hereof and marked Exhibit "B". 6. The above policy became operative and in full force and continued as such until later canceled, the respective dates of issuance and cancellation are more fully described in attached Exhibit "B". 7. Pursuant to the terms and conditions of the policy, Defendant was required to pay earned premiums in the amount of $16,508.00, all of which were calculated in accordance with the above Workers Compensation policy of insurance. 8. Defendant has failed to pay earned premiums in the amount of $9,340.00. 9. Plaintiff has performed and complied with all terms and conditions required under said above policy of insurance. 10. Plaintiff is entitled to receive interest on the above amount determined by applying the statutory interest rate of 6.00% per annum to the past due balance. As of July 7, 2005 the total amount of interest due to plaintiff is $1,016.40. 11. Plaintiff is entitled to have the 6.00% interest charge continue to accrue as set forth above, from July 7, 2005 on down to the date of judgment in this matter. 12. Plaintiff has made demand against Defendant for the aforesaid sum, but Defendant failed or refused to pay the same or any part thereof. WHEREFORE, Plaintiff demands judgment against Defendant for $10,356.40 together with the continually accruing interest charge at the statutory rate of 6.00% per annum from July 7, 2005, and cost of suit. COUNT II (The Travelers Indemnity Company of Illinois vs. Defendant) Breach of Contract 13. At the special instance and request of Defendant, Plaintiff issued its General Liability policy of insurance, naming Defendant as the insured, as fully described in the attached Policy, a true and correct copy of which is attached hereto, made a part hereof and marked Exhibit "C". 14. The above policy became operative and in full force and continued as such until later canceled, the respective dates of issuance and cancellation are more fully described in attached Exhibit "C". 15. Pursuant to the terms and conditions of the policy, Defendant was required to pay earned premiums in the amount of $8,493.00, all of which were calculated in accordance with the above Workers Compensation policy of insurance. 16. Defendant has failed to pay earned premiums in the amount of $565.00. 17. Plaintiff has performed and complied with all terms and conditions required under said above policy of insurance. 18. Plaintiff is entitled to receive interest on the above amount determined by applying the statutory interest rate of 6.00% per annum to the past due balance. As of July 7, 2005 the total amount of interest due to plaintiff is $61.48. 19. Plaintiff is entitled to have the 6.00% interest charge continue to accrue as set forth above, from July 7, 2005 on down to the date of judgment in this matter. 20. Plaintiff has made demand against Defendant for the aforesaid sum, but Defendant failed or refused to pay the same or any part thereof. WHEREFORE, Plaintiff demands judgment against Defendant for $626.48 together with the continually accruing interest charge at the statutory rate of 6.00 % per annum from July 7, 2005, and cost of suit. AMATO AND MARGLE, P.C. By: Ronald Amato, Esq., Atty ID #32323 Michael J. Kennedy, Esq., Atty ID #72412 Michael R. Lessa, Esq., Atty ID #88617 Attorneys for Plaintiff 107 North Commerce Way Bethlehem, PA 18017 (610) 866-0400 VERIFICATION L'J kcrUYIJP?Ir, hereby states that he/she is the )i W i 4-12 Plaintiff in this action, and verifies of G6 Pr ,11 4!10 that the statements made in the attached Complaint are true and correct to the best of his/her knowledge, information and belief. The undersigned understands that the statements herein are made subject to the penalties of 18 PA C.S. §4904 relating to unsworn falsification to authorities. Policy premium/payment history for WPG Fasteners UB - 3795A536 eff. 9/14/02 - 03 Workers Compensation Original policy premium $ 7,168.00 Final audit $ 9.340.00 Final earned premium $16,508.00 680 - 3793A531 eff. 9/14/02 - 03 General Liability Original policy premium $ 7,928.00 Final audit 565.00 Final earned premium $ 8,493.00 810 - 3795A837 eff. 9/14/02 - 03 Automobile Original policy premium $ 6,206.00 Endorsement eff. 9/14/02 $ 145.00 Endorsement eff.9/14/02 $ 34.00 Endorsement eff. 2/3/03 $ 63.00 CR Endorsement eff. 1/11103 $ 4,897.00 Endorsement eff. 2/3/03 $ 5.00 CR Endorsement eff. 4/9/03 $ 429.00 Endorsement eff. 3/9/03 $ 870.00 CR Final earned premium $10,773.00 CUP - 504SW209 eff. 9/14/02 - 03 Umbrella Original policy premium $ 4,712.00 Total policy premiums $40,486.00 Payments: 6/23/03 $ 4,422.00 5/27/03 $ 2,766.12 4/23/03 $ 3,812.44 3/18/03 $ 4,296.62 2/25/03 $ 2,180.01 1/24/03 $ 2,180.01 12/16/02 $ 2,180.01 11/26/02 $ 2,180.01 11/4/02 $ 4,922.83 10/29/02 $ 1,640.95 total payments $30,581.00 Total policy premiums $40,486.00 Total payments $30,581.0 0 Total outstanding $ 9,905.00 i TravelerspropertyCasualtyA901W Aa ormRawlcrsGroup J WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY TYPE V INFORMATION PAGE WC 00 00 01 ( A) POLICY NUMBER: (IHUB-3795A53-6-02) NEW-02 INSURER: THE TRAVELERS INDEMNITY COMPANY OF AMERICA NCCI CO CODE: 13439 1. INSURED: WPG FASTENERS 3617 SIMPSON FERRY ROAD CAMP HILL PA 17011 PRODUCER: ACORDIA NORTHEAST INC P O BOX 1220 MECHANICSBURG PA 17055 Insured is A CORPORATION Other work places and identification numbers are shown in the schedule(s) attached. 2. The policy period is from 09-14-02 to 09-14-03 12:01 A.M. at the insured's mailing addresss. 3. A. WORKERS COMPENSATION INSURANCE: Part One of the policy applies to the Workers Compensation Law of the state(s) listed here: PA B. EMPLOYERS LIABILITY INSURANCE: Part Two of the policy applies to work in each state listed in item 3.A. The limits of our liability under Part Two are: Bodily Injury by Accident: $ 100000 Each Accident Bodily Injury by Disease: $ 500000 Policy Limit Bodily Injury by Disease: $ 100000 Each Employee C. OTHER STATES INSURANCE: Part Three of the policy applies to the states, if any, listed here: AL AR AZ CA CO CT DC DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS MT NC NE NH NJ NM NV NY OK OR RI SC SD TN TX UT VA VT WI D. This policy includes these endorsements and schedules: SEE LISTING OF ENDORSEMENTS - EXTENSION OF INFO PAGE 4. The premium for this policy will be determined by our Manuals of Rules, Classifications, Rates and Rating Plans. All required information is subject to verification and change by audit to be made ANNUALLY. DATE OFISSUE: 09-06-02 TS OFFICE: READING 177 PRODUCER: ACORDIA NORTHEAST INC GA672 DIRECT BILL TravelersProperty Casualty?? ew a7ra lersGraup CODE NO TYPE v INFORMATION PAGE WC 00 00 01 ( A) POLICY NUMBER: (IHUB-3795A53-6-02) CLASSIFICATION SCHEDULE: CLASSIFICATIONS SIC-CODE: 9999 WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY PREMIUM BASIS ESTIMATED RATES ESTIMATED TOTAL ANNUAL PER $100 OF ANNUAL REMUNERATION REMUNERATION PREMIUM SEE EXTENSION OF INFORMATION PAGE - SCHEDULE(S) ------------------------------------------------------------------------------------ STANDARD TOTAL ESTIMATED ANNUAL STANDARD PREMIUM $ 6734 PREMIUM DISCOUNT NONE 0900-37 EXPENSE CONSTANT 200 TOTAL ESTIMATED PREMIUM 6934 TAXES AND SURCHARGES 234 DEPOSIT AMOUNT DUE 7168 Minimum Premium: $ 1010 DATE OF ISSUE: 09-06-02 TS OFFICE: READING 177 PRODUCER: ACORDIA NORTHEAST INC GA672 COUNTERSIGNED-AGENT TravelersPropertyCasualty Aftk I WORKERS COMPENSATION Aw ff&nu lersGroup AND EMPLOYERS LIABILITY POLICY EXTENSION OF INFO PAGE-SCHEDULE WC 00 00 01 ( A) POLICYNUMBER: (IHUB-3795A53-6-02) INSURER: THE TRAVELERS INDEMNITY COMPANY OF AMERICA INSURED'S NAME: WPG FASTENERS CLASSIFICATION LOCATION 001 01 FEIN 281843096 ENTITY CD 001 WPG FASTENERS, INC. IDEAL CARDS, INC. APPLE FASTENERS 3617A SIMPSON FERRY ROAD CAMP HILL, PA 17011 WHOLESALE STORE HARDWARE STORE SALESPERSON-OUTSIDE 13439-PA RATE BUREAU ID: 2973710 PREMIUM BASIS ESTIMATED RATES ESTIMATED TOTAL ANNUAL PER $100 OF ANNUAL CODE REMUNERATION REMUNERATION PREMIUM 0924 40000 6.49 2596 0926 98000 4.21 4126 0951 52510 .84 441 DATE OF ISSUE: 09-06-02 TS SCHEDULE NO: 1 OFMORE TravelersProperty2analty? WORKERS COMPENSATION nwmeRw TraveersGroap AND EMPLOYERS LIABILITY POLICY EXTENSION OF INFO PAGE-SCHEDULE WC 00 00 01 ( A) POLICYNUMBER: (IHUB-3795A53-6-02) PREMIUM BASIS ESTIMATED RATES ESTIMATED TOTAL ANNUAL PER $100 OF ANNUAL CLASSIFICATION CODE REMUNERATION REMUNERATION PREMIUM LOCATION 001 01 (CONT'D) OFFICE 0953 149000 .38 566 TOTAL PREMIUM SUBJECT TO EXPERIENCE MODIFICATION $ EXPERIENCE MODIFICATION: .968 MODIFIED PREMIUM 10.00% SCHEDULE CREDIT(9887) TOTAL ESTIMATED ANNUAL STANDARD PREMIUM EXPENSE CONSTANT(0900) 3.37% PA EMPL ASSESSMENT (0938) TOTAL ESTIMATED PREMIUM DEPOSIT AMOUNT DUE 7729 7482 748 6734 200 234 7168 7168 DATE OF ISSUE: 09-06-02 TS SCHEDULE NO: 2 OF LAST TravelersPropertyCasualty AINK I WORKERS COMPENSATION ns?ne.ot TravelersGroup AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC 00 00 01 (A) POLICYNUMBER: (IHUB-3795A53-6-02) LISTING OF ENDORSEMENTS EXTENSION OF INFO PAGE We agree that the following listed endorsements form a part of this policy on its effective date. WC 00 00 01 A - 001 WC 00 00 01 A - 001 WC 00 00 01 A - 001 WC 00 00 01 A - 001 WC 99 04 08 00 - 001 WC 37 03 10 B - 001 WC 37 06 01 00 - 001 WC 37 06 02 00 - 001 WC 37 06 03 A - 001 WC 37 06 04 00 - 001 INFORMATION PAGE INFORMATION PAGE 2 EXTENSION OF INFORMATION PAGE - SCHEDULE ENDORSEMENT LISTING PREMIUM DISCOUNT ENDORSEMENT EXCLUSTION OF EXEC OFFICERS - PA SPECIAL PA ENDT -- INSPECTION OF MANUALS NOTICE INS CONSULTATION SERVICE EXEMPT. PA ACT 86-1986 ENDORSEMENT PA EMPLOYER ASSESSMENT ENDORSEMENT DATE OF ISSUE: 09-06-02 ST ASSIGN: Page i of LAST WC 00 00 00 (A) The Travelers Insurance Companies (Each a Stock Insurance Company) Hartford, Connecticut WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY In return for the payment of the premium and subject to all terms of this policy, we agree with you as follows: GENERAL SECTION A. The Policy This policy includes at its effective date the Infor- mation Page and all endorsements and schedules listed there. It is a contract of insurance between you (the employer named in Item 1 of the Informa- tion Page) and us (the insurer named on the Information Page). The only agreements relating to this insurance are stated in this policy. The terms of this policy may not be changed or waived except by endorsement issued by us to be part of this policy. B. Who Is Insured You are insured if you are an employer named in Item 1 of the Information Page. If that employer is a partnership, and if you are one of its partners, you are insured, but only in your capacity as an em- ployer of the partnership's employees. C. Workers Compensation Law ease law of each state or territory named in Item 3.A. of the Information Page. It includes any amendments to that law which are in effect during the policy period. It does not include any federal workers or workmen's compensation law, any fed- eral occupational disease law or the provisions of any law that provide nonoccupational disability benefits. D. State State means any state of the United States of America, and the District of Columbia. E. Locations This policy covers all of your workplaces listed in Items 1 or 4 of the Information Page; and it covers all other workplaces in Item 3.A. states unless you have other insurance or are self-insured for such workplaces. Workers Compensation Law means the workers or workmen's compensation law and occupational dis- PART ONE -WORKERS COMPENSATION INSURANCE A. How This Insurance Applies This workers compensation insurance applies to bodily injury by accident or bodily injury by disease. Bodily injury includes resulting death. 1. Bodily injury by accident must occur during the policy period. 2. Bodily injury by disease must be caused or ag- gravated by the conditions of your employment. The employee's last day of last exposure to the conditions causing or aggravating such bodily injury by disease must occur during the policy period. B. We Will Pay We will pay promptly when due the benefits re- quired of you by the workers compensation law. C. We Will Defend We have the right and duty to defend at our ex- pense any claim, proceeding or suit against you for benefits payable by this insurance. We have the right to investigate and settle these claims, proceed- ings or suits. We have no duty to defend a claim, proceeding or suit that is not covered by this insurance. D. We Will Also Pay We will also pay these costs, in addition to other amounts payable under this insurance, as part of any claim, proceeding or suit we defend: 1. reasonable expenses incurred at our request, but not loss of earnings; 2. premiums for bonds to release attachments and for appeal bonds in bond amounts up to the amount payable under this insurance; 3. litigation costs taxed against you; 4. interest on a judgment as required by law until we offer the amount due under this insurance; and 5. expenses we incur. E. Other Insurance We will not pay more than our share of benefits and costs covered by this insurance and other insurance or self-insurance. Subject to any limits of liability that may apply, all shares will be equal until the loss is paid. If any insurance or self-insurance is ex- hausted, the shares of all remaining insurance will be equal until the loss is paid. F. Payments You Must Make You are responsible for any payments in excess of the benefits regularly provided by the workers com- pensation law including those required because: I. of your serious and willful misconduct; 2. you knowingly employ an employee in violation of law; 3. you fail to comply with a health or safety law or regulation; or 4. you discharge, coerce or otherwise discriminate against any employee in violation of the workers compensation law. If we make any payments in excess of the benefits regularly provided by the workers compensation law on your behalf, you will reimburse us promptly. Page I of 5 G. Recovery From Others We have your rights, and the rights of persons enti- tled to the benefits of this insurance, to recover our payments from anyone liable for the injury. You will do everything necessary to protect those rights for us and to help us enforce them. H. Statutory Provisions These statements apply where they are required by law. 1. As between an injured worker and us, we have notice of the injury when you have notice. 2. Your default or the bankruptcy or insolvency of you or your estate will not relieve us of our du- ties under this insurance after an injury occurs. 3. We are directly and primarily liable to any per- son entitled to the benefits payable by this in- surance. Those persons may enforce our duties; so may an agency authorized bylaw. Enforcement may be against us or against you and us. 4. Jurisdiction over you is jurisdiction over us for purposes of the workers compensation law. We are bound by decisions against you under that law, subject to the provisions of this policy that are not in conflict with that law. 5. This insurance conforms to the parts of the workers compensation law that apply to: a. benefits payable by this insurance; b. special taxes, payments into security or other special funds, and assessments pay- able by us under that law. 6. Terms of this insurance that conflict with the workers compensation law are changed by this statement to conform to that law. Nothing in these paragraphs relieves you of your duties under this policy. PART TWO-EMPLOYERS LIABILITY INSURANCE A. How This Insurance Applies This employers liability insurance applies to bodily injury by accident or bodily injury by disease. Bodily injury includes resulting death. 1. The bodily injury must arise out of and in the course of the injured employee's employment by you. 2. The employment must be necessary or inci- dental to your work in a state or territory listed in Item 3.A. of the Information Page. 3. Bodily injury by accident must occur during the policy period. 4. Bodily injury by disease must be caused or ag- gravated by the conditions of your employment. The employee's last day of last exposure to the conditions causing or aggravating such bodily injury by disease must occur during the policy period. 5. If you are sued, the original suit and any related legal actions for damages for bodily injury by accident or by disease must be brought in the United States of America, its territories or pos- sessions, or Canada. B. We Will Pay We will pay all sums you legally must pay as dam- ages because of bodily injury to your employees, provided the bodily injury is covered by this Employers Liability Insurance. The damages we will pay, where recovery is per- mitted by law, include damages: 1. for which you are liable to a third party by rea- son of a claim or suit against you by that third party to recover the damages claimed against such third party as a result of injury to your employee; 2. for care and loss of services; and 3. for consequential bodily injury to a spouse, child, parent, brother or sister of the injured employee; provided that these damages are the direct conse- quence of bodily injury that arises out of and in the course of the injured employee's employment by you; and 4. because of bodily injury to your employee that arises out of and in the course of employment, claimed against you in a capacity other than as employer. C. Exclusions This insurance does not cover: L liability assumed under a contract. This exclu- sion does not apply to a warranty that your work will be done in a workmanlike manner; 2. punitive or exemplary damages because of bod- ily injury to an employee employed in violation of law; 3. bodily injury to an employee while employed in violation of law with your actual knowledge or the actual knowledge of any of your executive officers; 4. any obligation imposed by a workers compensa- tion, occupational disease, unemployment com- pensation, or disability benefits law, or any similar law; 5. bodily injury intentionally caused or aggravated by you; 6. bodily injury occurring outside the United States of America, its territories or possessions, and Canada. This exclusion does not apply to bodily injury to a citizen or resident of the United States of America or Canada who is temporarily outside these countries; 7. damages arising out of coercion, criticism, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation, discrimi- nation against or termination of any employee, or any personnel practices, policies, acts or omissions. 8. bodily injury to any person in work subject to the Longshore and Harbor Workers' Compen- sation Act (33 USC Sections 901-950), the Nonappropriated Fund Instrumentalities Act (5 USC Sections 8171-8173), the Outer Conti- nental Shelf Lands Act (43 USC Sections 1331- 1356), the Defense Base Act (42 USC Sections 1651-1654), the Federal Coal Mine Health and Safety Act of 1969 (30 USC Sections 901-942), any other federal workers or workmen's com- pensation law or other federal occupational disease law, or any amendments to these laws, Page 2 of 5 9. bodily injury to any person in work subject to the Federal Employers' Liability Act (45 USC Sections 51-60), any other federal laws obligat- ing an employer to pay damages to an employee due to bodily injury arising out of or in the course of employment, or any amendments to those laws. 10. bodily injury to a master or member of the crew of any vessel. 11. fines or penalties imposed for violation of fed- eral or state law. 12. damages payable under the Migrant and Sea- sonal Agricultural Worker Protection Act (29 USC Sections 1801-1872) and under any other federal law awarding damages for violation of those laws or regulations issued thereunder, and any amendments to those laws. D. We Will Defend We have the right and duty to defend, at our ex- pense, any claim, proceeding or suit against you for damages payable by this insurance. We have the right to investigate and settle these claims, proceed- ings and suits. We have no duty to defend a claim, proceeding or suit that is not covered by this insurance. We have no duty to defend or continue defending after we have paid our applicable limit of liability under this insurance. E. We Will Also Pay We will also pay these costs, in addition to other amounts payable under this insurance, as part of any claim, proceeding or suit we defend: I. reasonable expenses incurred at our request, but not loss of earnings; 2. premiums for bonds to release attachments and for appeal bonds in bond amounts up to the limit of our liability under this insurance; 3. litigation costs taxed against you; 4. interest on a judgement as required by law until we offer the amount due under this insurance; and 5. expenses we incur. F. Other Insurance We will not pay more than our share of damages and costs covered by this insurance and other insurance or self-insurance. Subject to any limits of liability that apply, all shares will be equal until the loss is paid. If any insurance or self-insurance is ex- hausted, the shares of all remaining insurance and self-insurance will be equal until the loss is paid. G. Limits of Liability Our liability to pay for damages is limited. Our limits of liability are shown in Item 3.B. of the Information Page. They apply as explained below: I. Bodily Injury by Accident. The limit shown for "bodily injury by accident-each accident" is the most we will pay for all damages covered by this insurance because of bodily injury to one or more employees in any one accident. A disease is not bodily injury by accident unless it results directly from bodily injury by acci- dent. 2. Bodily Injury by Disease. The limit shown for "bodily injury by disease-policy limit" is the most we will pay for all damages covered by this insurance and arising out of bodily injury by disease, regardless of the number of employees who sustain bodily injury by disease. The limit shown for "bodily injury by disease-each em- ployee" is the most we will pay for all damages because of bodily injury by disease to any one employee. Bodily injury by disease does not include dis- ease that results directly from a bodily injury by accident. 3. We will not pay any claims for damages after we have paid the applicable limit of our liability under this insurance. H. Recovery From Others We have your rights to recover our payment from anyone liable for an injury covered by this insur- ance. You will do everything necessary to protect those rights for us and to help us enforce them. 1. Actions Against Us There will be no right of action against us under this insurance unless: 1. You have complied with all the terms of this policy; and 2. The amount you owe has been determined with our consent or by actual trial and final judge- ment. This insurance does not give anyone the right to add us as a defendant in an action against you to determine your liability. The bankruptcy or insol- vency of you or your estate will not relieve us of our obligations under this Part. PART THREE- OTHER STATES INSURANCE A. How This Insurance Applies 1. This other states insurance applies only if one or more states are shown in Item 3.C. of the Information Page. 2. If you begin work in any one of those states after the effective date of this policy and are not insured or are not self-insured for such work, all provisions of the policy will apply as though that state were listed in Item 3.A. of the Information Page. 3. We will reimburse you for the benefits required by the workers compensation law of that state if we are not permitted to pay the benefits direct- ly to persons entitled to them. 4. If you have work on the effective date of this policy in any state not listed in Item 3.A. of the Information Page, coverage will not be afford- ed for that state unless we are notified within thirty days. B. Notice Tell us at once if you begin work in any state listed in Item 3.C. of the Information Page. Page 3 of 5 PART FOUR -YOUR DUTIES IF INJURY OCCURS Tell us at once if injury occurs that may be covered by this policy. Your other duties are listed here. 1. Provide for immediate medical and other services required by the workers compensation law. 2. Give us or our agent the names and addresses of the injured persons and of witnesses, and other infor- mation we may need. 3_ Promptly give us all notices, demands and legal papers related to the injury, claim, proceeding or suit. 4. Cooperate with us and assist us, as we may request, in the investigation, settlement or defense of any claim, proceeding or suit. 5. Do nothing after an injury occurs that would inter- fere with our right to recover from others. 6. Do not voluntarily make payments, assume obliga- tions or incur expenses, except at your own cost. PART FIVE -PREMIUM A. Our Manuals B. C. D. All premium for this policy will be determined by our manuals of rules, rates, rating plans and classi- fications. We may change our manuals and apply the changes to this policy if authorized by law or a governmental agency regulating this insurance. Classifications Item 4 of the Information Page shows the rate and premium basis for certain business or work classi- fications. These classifications were assigned based on an estimate of the exposures you would have during the policy period. If your actual exposures are not properly described by those classifications, we will assign proper classifications, rates and pre- mium basis by endorsement to this policy. Remuneration Premium for each work classification is determined by multiplying a rate times a premium basis. Re- muneration is the most common premium basis. This premium basis includes payroll and all other remuneration paid or payable during the policy period for the services of_ 1. All your officers and employees engaged in work covered by this policy; and 2. All other persons engaged in work that could make us liable under Part One (Workers Com- pensation Insurance) of this policy. If you do not have payroll records for these persons, the contract price for their services and materials may be used as the premium basis. This para- graph 2 will not apply if you give as proof that the employers of these persons lawfully secured their workers compensation obligations. Premium Payments You will pay all premium when due. You will pay the premium even if part or all of a workers com- pensation law is not valid. E. Final Premium The premium shown on the Information Page, schedules, and endorsements is an estimate. The final premium will be determined after this policy ends by using the actual, not the estimated, pre- mium basis and the proper classifications and rates that lawfully apply to the business and work covered by this policy. If the final premium is more than the premium you paid to us, you must pay us the bal- ance. If it is less, we will refund the balance to you. The final premium will not be less than the highest minimum premium for the classifications covered by this policy. If this policy is canceled, final premium will be determined in the following wayunless our manuals provide otherwise: 1. If we cancel, final premium will be calculated pro rata based on the time this policy was in force. Final premium will not be less than the pro rata share of the minimum premium. 2. If you cancel, final premium will be more than pro rata; it will be based on the time this policy was in force, and increased by our short-rate cancellation table and procedure. Final pre- mium will not be less than the minimum pre- mium. F. Records You will keep records of information needed to compute premium. You will provide us with copies of those records when we ask for them. G. Audit You will let us examine and audit all your records that relate to this policy. These records include ledgers, journals, registers, vouchers, contracts, tax reports, payroll and disbursement records, and programs for storing and retrieving data. We may conduct the audits during regular business hours during the policy period and within three years after the policy period ends. Information developed by audit will be used to determine final premium. Insurance rate service organizations have the same rights we have under this provision. PART SIX -CONDITIONS A. Inspection We have the right, but are not obliged to inspect your workplaces at any time. Our inspections are not safety inspections. They relate only to the insur- ability of the workplaces and the premiums to be charged. We may give you reports on the conditions we find. We may also recommend changes. While they may help reduce losses, we do not undertake to perform the duty of any person to provide for the health or safety of your employees or the public. We do not warrant that your workplaces are safe or healthful or that they comply with laws, regulations, codes or standards. Insurance rate service organi- zations have the same rights we have under this provision. Page 4 of 5 B. Long Term Policy If the policy period is longer than one year and six- teen days, all provisions of this policy will apply as though a new policy were issued on each annual anniversary that this policy is in force. C. Transfer of Your Rights and Duties Your rights or duties under this policy may not be transferred without our written consent. If you die and we receive notice within thirty days after your death, we will cover your legal repre- sentative as insured. D. Cancelation 1. You may cancel this policy. You must mail or deliver advance written notice to us stating when the cancellation is to take effect. 2. We may cancel this policy. We must mail or deliver to you not less than ten days advance written notice stating when the cancellation is to take effect. Mailing that notice to you at your mailing address shown in Item 1 of the Infor- mation Page will be sufficient to prove notice. 3. The policy period will end on the day and hour stated in the cancellation notice. 4. Any of these provisions that conflict with a law that controls the cancellation of the insurance in this policy is changed by this statement to comply with the law. E. Sole Representative The insured first named in Item 1 of the Information Page will act on behalf of all insureds to change this policy, receive return premium, and give or receive notice of cancellation. In witness whereof, the company has caused this policy to be signed by its President and Secretary at Hartford, Connecticut and countersigned on the Information page by a duly authorized agent of the company. Secretary WC 00 00 00 (A) ezc_? d - (?" President CP-3349 Edition 2-92 Printed in U.S.A. (2-92) Page 5 of 5 TravelersFropertyCasualty I ns?sRrt ZYsrel...G".' WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC 99 04 08 (00) POLICYNUMBER: (IHDB-3795A53-6-02) PREMIUM DISCOUNT ENDORSEMENT The premium for the state and other states, if any, listed in item 3.A of the Information Page may be eligible for a discount. The final calculation of premium discount will be determined by our manuals and your premium as determined by audit. Premium subject to retrospective rating is not subject to premium discount. OTHER POLICIES: DATE OF ISSUE: 09-06-02 ST ASSIGN: TravelerspropertyEasualty? n w.meRw Tsa?lersGroup WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC 37 03 10 (B) POLICY NUMBER: (IHUB-3795A53-6-02) EXCLUSION OF EXECUTIVE OFFICERS ENDORSEMENT-PENNSYLVANIA The executive officers named in the schedule have exercised their right to waive workers compensation and employers liability benefits payable under this policy. The premium basis for this policy does not include the remuneration of such persons. The insurance carrier is entitled to reimbursement from the employer for any benefits paid under this policy for any of the persons listed in the schedule. Only officers with an ownership interest in a Subchapter S corporation or officers individually having at least a 5 percent ownership in a Subchapter C corporation or serve voluntarily and without remuneration in a non-profit corporation are eligible. SCHEDULE Type of % Social Office Optional Corporation Ownership Name of Officer Security # Held Signature ("S", "C" or "V") Interest WILLIAM GULA 000000000 OWNER C 100 Policy Number (SHUB-3795A53-6-02) Policy Effective Date 09-14-02 Policyholder Name WPG FASTENERS Carrier Name THE TRAVELERS INSURANCE COMPANIES DATE OF ISSUE: 09-06-02 ST ASSIGN: TravelersPropertyCasualtyI nmem &7ra IenGroup J WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC 37 06 01 (00) POLICY NUMBER: (IRUB-3795A53-6-02) SPECIAL PENNSYLVANIA ENDORSEMENT - INSPECTION OF MANUALS The manuals of rules, rating plans, and classifications are approved pursuant to the provisions of Section 654 of the Insurance Company Law of May 17, 1921, P.I. 682, as amended, and are on file with the Insurance Com- missioner of the Commonwealth of Pennsylvania. DATE OF ISSUE: 09-06-02 ST ASSIGN: TravelersPrTertyCasualty ASOK II s4meROC7F.Ie,sGroup J WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC 37 06 02 (00) POLICY NUMBER: (IHUB-3795A53-6-02) NOTICE INSURANCE CONSULTATION SERVICES EXEMPTION ACT This notice is issued by that member of The Travelers Insurance Companies which issued your insurance policy and shall be attached to and become a part of your policy. This Notice is provided to you pursuant to the law of the Commonwealth of Pennsylvania effective January 1, 1981 and known as the "Insurance Consultation Services Exemption Act", which generally provides that "the furnishing of, or failure to furnish, insurance consultation services related to, in connection with or incidental to a policy of insurance shall not subject the insurer, its agents, employees or service contractors to liability for damages from injury, death or loss occurring as a result of any act or omission by any person in the course of such services." Such immunity does not apply: (1) where the injury occurred during the actual performance of consultation services and was caused by the negligence of the insurer; (II) with respect to consultation services performed pursuant to a written service contract not incidental to a policy of insurance; and (III) in any action against an insurer in which it is judicially determined that any act or omission resulting in damages constituted a crime, actual malice or gross negligence. The Travelers may make such inspection in accordance with provisions of our policies. DATE OF ISSUE: 09-06-02 STASSfGN: TravelersProMrtRwTtave asualty? I? nmlersGroup J WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC 37 06 03 (A) POLICY NUMBER: (IHUB-3795A53-6-02) PENNSYLVANIA ACT 86-1986 ENDORSEMENT NONRENEWAL, NOTICE OF INCREASE OF PREMIUM, and RETURN OF UNEARNED PREMIUM This endorsement applies only to the insurance provided by the policy because Pennsylvania is shown in Item 3.A. of the Information Page. The policy conditions are amended by adding the following regarding nonrenewal, notice of increase in premium, and return of unearned premium. Nonrenewal 1. We may elect not to renew the policy. We will mail to each named insured, by first class mail, not less than 60 days advance notice stating when the nonrenewal will take effect. Mailing that notice to you at your mailing address last known to us will be sufficient to prove notice. 2. Our notice of nonrenewal will state our specific reasons for not renewing. 3. If we have indicated our willingness to renew, we will not send you a notice of nonrenewal. However, the policy will still terminate on its expiration date if: a. you notify us or the agent or broker who procured this policy that you do not want the policy renewed; or b. you fail to pay all premiums when due; or c. you obtain other insurance as a replacement of the policy. Notice of Increase in Premium 1. We will provide you with not less than 30 days advance notice of an increase in renewal premium of this policy, if it is our intent to offer such renewal. 2. The above notification requirement will be satisfied if we have issued a renewal policy more than 30 days prior to its effective date. 3. If a policy has been written or is to be written on a retrospective rating plan basis, the notice of increase in premium provision of this endorsement does not apply. Return of Unearned Premium 1. If this policy is canceled and there is unearned premium due you: a. If the Company cancels, the unearned premium will be returned to you within 10 business days after the effective date of cancellation. b. If you cancel, the unearned premium will be returned within 30 days after the effective date of cancellation. 2. Because this policy was written on the basis of an estimated premium and is subject to a premium audit, the unearned premium specified in 1a. and 1b. above, if any, shall be returned on an estimated basis. Upon our completion of computation of the exact premium, an additional return premium or charge will be made to you within 15 days of the final computation. 3. These return of unearned premium provisions shall not apply if this policy is written on a retrospective rating plan basis. DATE OF ISSUE: 09-06-02 STASSIGN: TravelersPropertyCasualty mo, AuweR 21ra /ersGmup J WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC 37 06 04 (00) POLICYNUMBER: (IHUB-3795A53-6-02) PENNSYLVANIA EMPLOYER ASSESSMENT ENDORSEMENT Act 57 of 1997 requires that "...the assessments for the maintenance of the Subsequent Injury Fund, the Workmen's Compensation Supersedes Fund and the Workmen's Compensation Administration Fund under sections 306.2, 443 and 446 of the act of June 2, 1915 (P.L. 736, No. 338), known as the "Workers' Compensation Act, shall be imposed, collected and remitted through insurers in accordance with regulations promulgated by the Department of Labor and Industry". EMPLOYER ASSESSMENT FORMULA: Employer = Act 57 of 1997 Employer X Employer Assessment Assessment Assessment Factor Premium Base Act 57 of 1997 Employer Assessment Factor A factor expressed to four decimal places proposed by the Pennsylvania Compensation Rating Bureau and approved by the Pennsylvania Insurance Commissioner. Employer Assessment Premium Base Calculation of Employer Assessment Premium Base proceeds by adding back to the total policy premium the amount of any Small Deductible Premium Credit or Large Deductible Premium Credit. Code 0938 EMPLOYER ASSESSMENT FACTOR See info page EMPLOYER ASSESSMENT $ See info page DATE OF ISSUE: 09-06-02 ST ASSIGN: Page 1 of 1 TravelersPropertyCasualty n.,emeRa71, v Ierscroup WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY POLICY NUMBER: (IHUB-3795A53-6-02) NOTICE OF ELECTION TO ACCEPT AN INSURANCE DEDUCTIBLE FOR PENNSYLVANIA WORKERS' COMPENSATION MEDICAL AND INDEMNITY BENEFITS Pennsylvania Policyholders Pennsylvania law now permits an employer to buy Workers' Compensation Insurance with a deductible. The deductible is for medical and indemnity benefits and applies separately to each bodily injury by accident or disease during the policy term, regardless of the number of employees who sustain injury in the accident. The deductible amount is subject to a minimum of $1,000 and a maximum of $10,000 per claim, with intermediate increments shown in the table below. To prevent putting you in an uninsured position, your policy has been issued at full rates with no deductible for medical benefits. If you wish to have this deductible option apply to your policy, fill in the information requested at the bottom of this form. Retain your copy for your records and send the agent and company copies to your agent within sixty (60) days after the effective date of your policy. An endorsement (WC 37 04 03 (00)) will then be attached to your policy to reflect the change. The applicable premium reduction percentage is that percentage corresponding to the appropriate hazard group indicated below. (Item #1) If you decide that you do not want a deductible to apply, or if you already have a deductible on the policy, you may disregard this form. Your policy will continue in force as issued. For a complete explanation of how this program operates or the savings available by choosing this option, please contact your producer. Item #1: HAZARD GROUP: Item #2: PERCENT PREMIUM REDUCTION HAZARD GROUPS DEDUCTIBLE PER ACCIDENT i II III IV $ 1,000 per claim 8.3% 7.8% 4.3% 2.5% 5,000 per claim 23.6 22.5 16.7 13.7 10,000 per claim 32.8 30.5 23.0 18.2 Yes, I want a deductible of $ applied to my medical and indemnity benefits under the Pennsylvania Workers' Compensation Law. I understand that the company shall pay the deductible amount and seek reimbursement from the employer shown below, DATE OF ISSUE: 09-06-02 W37N1C01 Page 1 of 2 I understand that in accordance with Pennsylvania revised statutes, I have the option of modifying the above deductible program choice at the time of renewal of my Workers' Compensation policy with the insurance company named below. Date: Insurance Company: Producers Name: Policy Number: Employer: Name: Title: Signature: W37NIC01 Page 2 of 2 WORKERS' COMPENSATION TELEPHONE REPORTING 1-800-238-6225 TO REPORT A WORKERS' COMPENSATION CLAIM When an employee is injured, the most important thing is to secure appropriate medical treatment. Once this has been done, report the claim by calling the 1-800 number. Suggested Steps: 1. Gather the facts. Use the GUIDE FOR REPORTING WORKERS' COMPENSATION CLAIMS as a reference. It is not necessary to write answers to questions you know, it is a tool to help reduce the amount of time you are on the telephone. Remember, the objective is to report the claim quickly. We need the employee's name, social security number and a description of the accident. Try to gather as much information as possible, but don't worry if you do not have the answers to each and every question. 2. Call the Customer Service Unit. We have a single telephone number and the call will automatically be routed to the proper regional Customer Service Unit. You will be greeted on the telephone by a Customer Service Representative, who will complete the state specific notice of injury on the system by asking you the necessary questions. The order of the questions will be the same every time you call. The questions are grouped into three sections: • General Questions This section contains questions specific to you, your employee and the accident. Once you have reported a claim, the system will pre- fill your employer specific information, such as your policy number on all future claims. • State Specific Questions If the jurisdiction requires data not covered in the general section, it will be covered here. • Additional Comments and Information If you would like to provide additional information not covered else- where, the Customer Service Representative will be able to record this in a free form area. 3. Let Your Employee Know. Before you hang up, the Customer Service Representative will give you a claim number. Referencing the claim number will help expedite the handling of the rest of the claim. Please include the claim number with all future correspondence, such as wage statements or medical bills. Please be sure to give this number to your employee. W UNC4C01 If An Employee Is Injured At Work Prompt reporting of work-related injuries and illnesses and the use of Medical Network Providers contracted for Travelers nationwide can lower Workers Compensation claim costs! Whenever an Employee suffers a work-related injury or illness, the Employer should: 1. Seek appropriate medical care for the Employee. 2. If the injury or illness is acute, the Employer should always send the Employee to the nearest hospital emergency department. 3. If the injury or illness is not acute, the Employer may suggest that the Employee seek treatment from the nearest Medical Network Provider. Medical Network Providers understand work-related illnesses and injuries, are credentialed to help assure quality care, and cooperate to achieve a medically appropriate return to work for the Employee. Medical Network Providers (hospitals, initial care clinics, specialists, testing, therapy, etc.) are available in all 50 States and the District of Columbia. Even before an illness or injury occurs, it may be helpful for the Employer to build a relationship with a convenient Medical Network Clinic or Hospital that will provide initial treatment for ill or injured Employees. 4. The Employee's Supervisor should gather pertinent facts about the work-related illness or injury and may use the Worksheet For Workers' Compensation Telephone Reporting provided by Travelers as a guide. 5. As soon as possible, the Employer should report all work-related illnesses or injuries to Travelers by dialing our toll free number, 1-800-832-7839. If needed at that time, Travelers Customer Service Representative can provide the name of a convenient Medical Network Provider. Prompt reporting of work-related illnesses and injuries is key in helping to reduce claim costs. At the conclusion of the phone call, the Travelers Customer Service Representative will provide a claim number that should be retained for the Employer's reference and also provided to the ill or injured Employee. The card below contains information that may be helpful in reporting work-related illnesses and injuries to Travelers and should be kept in a convenient location for use by the Employer when needed. WC Claim Reporting • Please report work-related injuries promptly to Travelers: 1-800-832-7839. • Learn about all of Travelers' Claim Services (including Medical Network Providers) on Travelers website. Log on to www.travelers.com. • To get to Claim Services on Travelers' website, select Business insurance from the home page. Then choose Workers' Compensation & Managed Care Claim Management from the menu of services in the left margin. Finally, click on Preferred Provider Network to search for a Medical Network Provider nearyou. WUNC51302 Page 1 of 1 IMPORTANT Policy Audit Information Dear Policyholder: This policy is issued with an estimated premium based upon information provided through your Producer. This premium is subject to adjustment at the end of the policy period. At that time, you may receive a request for information in the mail or a premium auditor may contact you to review the necessary records. The information developed is needed to determine the final earned premium for this policy. Record Maintenance in order to facilitate audit service, it is necessary to maintain proper records and have them available at the proper time. Based on the nature of your business, some of the following data will be necessary to complete the audit: 1. General Ledger, Financial Statements 2. Payroll Records, Time Books, State Unemployment Returns, FICA Returns, Individual Earnings Records-Monthly totals separated by type of work and overtime. 3. Cash Receipts, Sales Journal 4. Cash Disbursements Journal - Including subcontractors. casual labor and material costs. 5. Certificates of Insurance IMPORTANT COVERAGE NOTE: If you utilize subcontractors whose legal status is that of sole proprietor/partner, we may charge premium for these persons as provided under Part 5 of the policy contract even though certificates of insurance may exist. Please contact your producer if you have any questions regarding your Workers' Compensation coverage needs. Work in Other States Please advise your Producer if employees are hired for work in states other than those listed in Item 3. of your policy. This will enable your producer to consider your need for coverage in accordance with state laws. We appreciate the opportunity to serve you. If you have any questions about the enclosed policy or any insurance matters please contact your producer or your Company representative. WUNN7FO0 Commonwealth Of Pennsylvania Important Loss Control Information The Travelers Indemnity Company and any of its property-casualty insurance subsidiar- ies and affiliates who may issue insurance policy(ies) to policyholder(s) in the Common- wealth of Pennsylvania is required by law to provide its policyholders with certain accident prevention services as required by Pennsylvania Workers' Compensation Act, Article X, Health and Safety, Sec 1001 (d). If you would like more information after read- ing the attached Safety Services notice, call or write the closest Loss Prevention & Engi- neering office listed in Safety Services notice. W37N2C01 PENNSYLVANIA RIGHTS AND DUTIES The employer shall provide payment in accordance with the Workers' Compensation Act for reasonable, surgical and medical services, services rendered by physicians or other health care providers, medicines and supplies, as and when needed, including an additional opinion when invasive surgery may be necessary, attributable to the work-related injury. 2. When an employer establishes a medical panel, it must have at least six designated health care providers, no more than four of whom may be a coordinated care organization and no fewer than three of whom shall be physicians. The employer shall not include on this list a physician or health care provider who is employed, owned or controlled by the employer or the employer's insurer unless employment, ownership or control is disclosed on the list. Should invasive surgery for an employee be prescribed by a physician or other health care provider so designated by the employer, the employee shall be permitted to receive an additional opinion from any health care provider of the employee's own choice. A. If the additional opinion differs from the opinion provided by the physician or health care provider so designated by the employer, the employee shall determine which course of treatment to follow: provided, that the second opinion provides a specific and detailed course of treatment. B. If the employee chooses to follow the procedures designated in the second opinion, such procedures shall be peformed by one of the physicians or other health care providers so designated by the employer for a period of ninety (90) days from the date of the visit to the physician or other health care provider of the employee's own choice. 4. You shall be required to visit one of the physicians or other health care providers so designated and shall continue to visit the same or another designated physician or health care provider for a period of ninety (90) days from the date of the first visit. Should you not comply with the foregoing, the employer will be relieved from liability for the payment for the services rendered during such applicable period. 6. It shall be the duty of the employer to provide a clearly written notification of your rights and duties under the Act to the employee. W37M2J96 Page I of 2 7. The employer shall further insure that you have been informed and that you understand these rights and duties. This duty shall be evidenced only by your written acknowledgement of having been informed and having understood your rights and duties. 9. Any failure of the employer to provide and evidence such notification shall relieve you from any notification duty owed, notwithstanding any provision of the Act to the contrary, and the employer shall remain liable for all rendered treatment. 10. Subsequent treatment, after the ninety (90) day period, may be provided by any health care provider of your choice. 11. Following the termination of the ninety (90) day period, if you are provided treatment from a non-designated health care provider, you shall notify the employer within Five (5) days of the first visit to said health care provider. 12. Failure to so notify the employer will relieve the employer from liability for the payment for the services rendered prior to appropriate notice if such services are determined to have been unreasonable or unnecessary. 13. In addition to the above service, the employer shall provide payment for medicines and supplies, hospital treatment, services and supplies and orthopedic appliances, and prostheses in accordance with the Act. EMPLOYEE DATE EMPLOYER WITNESS DATE THE ABOVE SIGNATURE ACKNOWLEDGES THAT I HAVE BEEN INFORMED AND UNDERSTAND MY RIGHTS AND DUTIES PERTAINING TO MEDICAL TREATMENT FOR WORK-RELATED INJURIES. Page 2 of 2 TravelersPropertyCasualty?? ?RS?n J PENNSYLVANIA POSTING NOTICE RIGHTS AND DUTIES Dear Policyholder: On August 23, 1996 the State of Pennsylvania enacted broadening legislative changes pertaining to the rights and duties of employers and employees which requires you, the employer, to inform your employees of their rights under the Workers' Compensation And Employers' Liability Act, as well as your responsibilities as an employer. With the enacted legislation two major changes affecting both employer and employees should be noted. 1. Gives the employee the option of having a second opinion paid by the employer, before undergoing invasive surgery; and 2 Employer-controlled medical treatment has been expanded from 30 days to 90 days. Enclosed is a new Posting Notice which must be posted in a conspicuous place where employees will readily see it. Also enclosed is a listing of physicians ("Pennsylvania Work- Related Injuries") which must be posted alongside the Posting Notice. It is your responsibility to complete this list of qualified physicians. Contact your Travelers claim representative or the nearest Travelers claim office for assistance in completing the list of physicians. Refer to the Posting Notice for the address of the nearest Travelers claim office. The law also requires you to see that the "Rights and Dudes" form is provided to each employee AND signed by each employee, and that a record is maintained for future reference. It is your responsibility to photocopy the form and distribute it to each employee. If you fail to have this form distributed and signed by your employees, you may be liable for any treatment rendered for work-related injuries. With the legislative changes that have occurred it is necessary to update your records and have your employees sign the revised "Pennsylvania Rights and Duties" form. Your agent, producer, or local claim office can assist you to be in compliance with the Pennsylvania Workers' Compensation Law. W37M3J96 PENNSYLVANIA WORK-RELATED INJURIES 1. If you suffer a work-related injury, your employer or its insurance company must pay for reasonable surgical and medical services and supplies, orthopedic appliances and prostheses, including training in their use. 2. In order to insure that your medical treatment will be paid for by your employer or the insurance company, you must select from one of the six designated health care providers listed below: NAME ADDRESS TELEPHONE AREA OF SPECIALTY 4 (6) *(NOTE: If any of the health care providers listed above are employed, owned or controlled by the employer or the employer's carrier, it will be so designated by an asterisk next to the health care provider's name.) 3. You must continue to visit one of these health care providers listed above, if you need treatment, for ninety (90) days from the date of your first visit. 4. After this ninety (90) day period, if you still need treatment and your employer has provided a list as set forth above, you may choose to go to another health care provider. You MUST notify your employer of this action within five (5) days of your visit to the health care provider of your choice. Your bills will be considered IF: your health care provider files written reports on a form prescribed by the Department (these reports must be filed within ten (10) days of commencing treatment and at least once a month thereafter, as long as treatment continues). The employer shall not be liable to pay for such treatment until a report has been filed. 5. If one of the health care providers listed above refers you to another health care provider, your employer or its insurer will pay the bill for these services provided they are reasonable and necessary. 6. If you are faced with a medical emergency, you may secure assistance from a hospital or health care provider of your choice. 7. If you have any questions, contact: W37P2J96 BUSINESSOWNERS ` `EXHIBIT Travelers A AK PropertyCasualty ewaeRm7Yaves,=, up J BUSINESSOWNERS One Tower Square, Hartford, Connecticut 06183 TravelersPropertyCasualty ,.,®ea??krsc,nup COMMON POLICY DECLARATIONS POLICY NO.: I-680-3793A531-TIL-02 WHOLESALERS PAC ISSUE DATE: 09-24-02 BUSINESS: WHOLESALERS 1. NAMED INSURED AND MAILING ADDRESS: WPG FASTENERS 3617 SIMPSON FERRY ROAD CAMP HILL PA 17011 2. POLICY PERIOD: From 09-14-02 to 09-14-03 12:01 A.M. Standard Time at your mailing address. 3. LOCATIONS: ADDRESS PREM. NO. BLDG. NO. OCCUPANCY (same as Mailing Address unless specified otherwise) 01 01 WHOLESALERS 3617A SIMPSON FERRY ROAD CAMP HILL PA 17011 02 01 WHOLESALERS 3617B SIMPSON FERRY ROAD CAMP HILL PA 17011 4. COVERAGE PARTS AND SUPPLEMENTS FORMING PART OF THIS POLICY AND INSURING COMPANIES COVERAGE PARTS and SUPPLEMENTS INSURING COMPANY Businessowners Coverage Part TIL 5. The COMPLETE POLICY consists of this declarations and all other declarations, and the forms and endorse- ments for which symbol numbers are attached on a separate listing. 6. SUPPLEMENTAL POLICIES: Each of the following is a separate policy containing its complete provisions. POLICY POLICY NUMBER INSURING COMPANY DIRECT BILL 7. PREMIUM SUMMARY: Provisional Premium Due at Inception Due at Each NAME AND ADDRESS OF AGENT OR BROKER ACORDIA NORTHEAST INC GA672 P O BOX 1220 MECHANICSBURG PA 17055 IL TO 19 08 01 (Page 1 of 01) Office: READING DOWN SUBJECT TO AUDIT $ 7,928.00 COUNTERSIGNED BY: Authorized Representative DATE: POLICY NUMBER: I-680-3793A531-TIL-02 EFFECTIVE DATE: 09-14-02 ISSUE DATE: 09-24-02 LISTING OF FORMS, AND SCHEDULE NUMBERS THIS LISTING SHOWS THE NUMBER OF FORMS, SCHEDULES AND ENDORSEMENTS BY LINE OF BUSINESS. IL TO 19 08 01 COMMON POLICY DEC IL T8 01 01 01 FORMS, ENDORSEMENTS AND SCHEDULE NUMBERS IL T3 15 12 94 COMMON POLICY CONDITIONS BUSINESSOWNERS MP TO 01 09 98 BUSINESSOWNERS COVERAGE PART DEC MP T1 30 08 01 TBL OF CONT-BUSINESSOWNERS COV-DELUXE MP T1 02 01 00 BUSINESSOWNERS PROPERTY COV-SPEC FORM MP T1 81 01 00 AMEND PROV WHOLESALERS-INCL BUSINESS INC MP T9 77 01 00 POWER-PAC PLUS ENDT-MFG/WHOLESALERS MP T4 66 01 00 PA CHANGES COMMERCIAL GENERAL LIABILITY CG TO 07 03 96 CG TO 34 10 93 CG 00 01 10 93 CG 00 57 09 99 CG D1 94 11 97 CG D2 34 02 01 CG 21 47 10 93 CG 21 61 04 98 CG D1 42 01 99 CG D1 92 08 97 CG D2 42 01 02 CG T3 23 09 96 CG T4 78 02 90 CG T3 33 12 88 INTERLINE DECLARATIONS PREMIUM SCHEDULE TABLE OF CONTENTS COMMERCIAL GENERAL LIABILITY COV FORM AMENDMENT OF INSURING AGRMNT-KNOWN INJ CHGS IN COMMERCIAL GENERAL LIAB COV FORM WEB XTEND - LIABILITY EMPLOYMENT-RELATED PRACTICES EXCLUSION EXCL-YR 2000 COMPUTER PROB-PROD/COMP OPR EXCLUSION-DISCRIMINATION AMEND POLL EXCL-EXCEPT BLDG HEAT EQUIP EXCLUSION WAR EXCL-AIRCRAFT PRODUCTS AND GROUNDING EXCLUSION-ASBESTOS LIMIT WHEN TWO OR MORE POLICIES APPLY IL 00 21 04 98 NUCLEAR ENERGY LIABILITY EXCLUSION IL 01 66 01 99 PENNSYLVANIA CHANGES-ACTUAL CASH VALUE IL 01 72 11 93 PENNSYLVANIA CHANGES IL 02 46 04 98 PA CHANGES-CANCELLATION & NONRENEWAL IL 09 10 07 02 PENNSYLVANIA NOTICE IL T3 53 04 98 EXCL CERTAIN COMPUTER-RELATED LOSSES IL T8 010101 PAGE: 1 OF 1 COMMON POLICY CONDITIONS All Coverage Parts included in this policy are subject to the following conditions: A. CANCELLATION C. EXAMINATION OF YOUR BOOKS AND RE- 1. The first Named Insured shown in the Decla- CORDS rations may cancel this policy by mailing or We may examine and audit your books and delivering to us advance written notice of records as they relate to this policy at any time cancellation. during the policy period and up to three years 2. We may cancel this policy or any Coverage afterward. Part by mailing or delivering to the first D. INSPECTIONS AND SURVEYS Named Insured written notice of cancellation We have the right but are not obligated to: at least: 1. Make inspections and surveys at any time; a. 10 days before the effective date of can- cellation if we cancel for nonpayment of 2.. Give you reports on the conditions we find; and premium: or b. 30 days before the effective date of can- 3. Recommend changes. cellation if we cancel for any other Any inspection, surveys, reports or recommen- reason. dations relate only to insurability and the 3, We will mail or deliver our notice to the first premiums to be charged. We do not make Named Insured's last mailing address known safety inspections. We do not undertake to per- to us. form the duty of any person or organization to provide for the health or safety of workers or the 4. Notice of cancellation will state the effective public. And we do not warrant that conditions: date of cancellation. If the policy is can- celled, that date will become the end of the 1. Are safe or healthful: or policy period. If a Coverage Part is can- 2. Comply with laws, regulations, codes or celfed, that date will become the end of the standards. policy period as respects that Coverage Part This condition applies not only to us, but also to only. any rating, advisory, rate service or similar or- 5. If this policy or any Coverage Part is can- ganization which makes insurance inspections, celled, we will send the first Named Insured surveys, reports or recommendations. any premium refund due. If we cancel, the E. PREMIUMS refund will be pro rata. If the first Named Insured cancels, the refund may be less than 1. The first Named Insured shown in the Decla- pro rata. The cancellation will be effective rations: even if we have not made or offered a refund. a. Is responsible for the payment of all 6. If notice is mailed, proof of mailing will be premiums: and sufficient proof of notice. b. Will be the payee for any return pre- B. CHANGES miums we pay. This policy contains all the agreements between 2. We compute all premiums for this policy in you and us concerning the insurance afforded. accordance with our rules, rates, rating The first Named Insured shown in the Declara- plans, premiums and minimum premiums. tions is authorized to make changes in the terms The premium shown in the Declarations was of this policy with our consent. This policy's computed based on rates and rules in effect terms can be amended or waived only by endor- at the time the policy was issued. On each sement issued by us as part of this policy. renewal, continuation or anniversary of the effective date of this policy, we will compute the premium in accordance with our rates and rules then in effect. IL T3 15 12 94 Page 1 of 2 (Rev. 2-95) F. TRANSFER OF YOUR RIGHTS AND DUTIES UNDER THIS POLICY Your rights and duties under this policy may not be transferred without our written consent except in the case of death of an individual named in- sured. If you die, your rights and duties will be trans- ferred to your legal representative but only while acting within the scope of duties as your legal representative. 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. G. BUSINESSOWNERS COVERAGE PART -REF- ERENCES TO FORMS AND ENDORSE- MENTS In some instances, the Common Policy Dec- larations may list endorsements included in the Businessowners Coverage Part that reference: 1. The Commercial Property Coverage Part; 2. The Commercial General Liability or Liquor Liability Coverage Part; or 3. Standard Property forms including, but not limited to, the following: a. Building and Personal Property Cov- erage Form; b. Business Income Coverage Form; c. Commercial Property Conditions; d. Condominium Association Coverage Form; e. Condominium Commercial Unit-Owners Coverage Form; I. Causes of Loss Basic Form; The Travelers Indemnity Company (IND), The Phoenix Insurance Company (PHX) The Charter Oak Fire Insurance Company (COF) The Travelers Indemnity Company of Illinois (TIL) The Travelers Indemnity Company of Connecticut (TCT) The Travelers Indemnity Company of America (TIA) The Travelers Insurance Company (Ins) g. Causes of Loss Special Form; and h. Causes of Loss Earthquake Form. Endorsements referencing the Commer- cial Property Coverage Part or the Stand- ard Property Forms referenced above apply to the Busihessowners Property Coverage Form (Standard or Special ver- sion) in the same manner as they apply to the forms they reference. Endorsements referencing the Commer- cial General Liability Coverage Part apply to the Commercial General Liability Coverage Form (included in the Busines- sowners Coverage Part) in the same manner as they apply to the form they reference. H. INSURANCE UNDER TWO OR MORE COV- ERAGE PARTS If two or more of this policy's Coverage Parts apply to the same loss or damage, we will not pay more than the actual amount of the loss or damage. INSURING COMPANIES In return for payment of the premium, The Travelers agrees with the Named Insured to pro- vide the insurance afforded by a Coverage Part forming part of this policy. That insurance will be provided by the company indicated as insuring company in the Common Policy Declarations by the abbreviation of its name opposite that Coverage Part. The companies listed below (each a stock com- pany) have executed this policy, but it is valid only if countersigned on the Common Policy Declarations by our authorized representative. 'Formerly known as The Travelers Indemnity Company of Rhode Island (TRI) Secretary Pr nt / Page 2 of 2 IL T3 15 12 94 (Rev. 2-95) TravelersPropertyCasuaky I One Tower Square, Hartford, Connecticut 06183 Aw uU7SavelersGwup V BUSINESSOWNERS COVERAGE PART DECLARATIONS WHOLESALERS PAC DELUXE PLAN POLICY NO.: I-680-3793A531-TIL-02 ISSUE DATE: 09-24-02 DECLARATIONS PERIOD: From 09-14-02 to 09-14-03 12:01 A.M. Standard Time at your mailing address. FORM OF BUSINESS: CORPORATION COVERAGES AND LIMITS OF INSURANCE: Insurance applies only to an item for which a "limit" or the word "INCLUDED" is shown. BUSINESSOWNERS PROPERTY COVERAGE: BUILDINGS: Limit of Insurance: Loss Adjustment Basis: Inflation Guard: Exterior Building Glass Deductible: PREM. BLDG. PREM. BLDG. NO. NO. NO. NO. 01 01 02 01 $ 81,250 $ $ 250 $ BUSINESS PERSONAL PROPERTY: Limit of Insurance: Loss Adjustment Basis: Inflation Guard: Exterior Building Glass: Exterior Building Glass Deductible: $ 481,250 $ 1,250,000 INCL $ INCL $ BUSINESS INCOME: Limit-Actual loss up to 12 Consecutive Months subject to a maximum limit of $ 2,500,000 DEDUCTIBLE AMOUNT: Businessowners Property Coverage: $ 500 Per Occurrence. COMMERCIAL GENERAL LIABILITY COVERAGE- OCCURRENCE FORM LIMITS OF INSURANCE General Aggregate (except Products-Completed Operations) Limit $ 2,000,000 Products-Completed Operations Aggregate Limit $ 2,000,000 Personal and Advertising Injury Limit $ 1, 000, 000 Each Occurrence Limit $ 1,000,000 Fire Damage Limit (any one fire) $ 300,000 Medical Payments Limit (any one person) $ 5,000 MORTGAGE HOLDER-BUILDING COVERAGE ONLY: SPECIAL PROVISIONS: COMMERCIAL GENERAL LIABILITY COVERAGE IS SUBJECT TO A GENERAL AGGREGATE LIMIT MP TO 01 09 98 (Page 1 of 01) TABLE OF CONTENTS BUSINESSOWNERS COVERAGE PART DELUXE PLAN The following indicates the contents of the principal forms which may be attached to your policy. It contains no reference to the Declarations or Endorsements which also may be attached. BUSINESSOWNERS PROPERTY COVERAGE SPECIAL FORM MP T1 02 Beginning on Page COVERAGE - BUILDING, BUSINESS PERSONAL PROPERTY AND BUSINESS INCOME ......................................................... Covered Property ..................................................................................................... ................................................................. 1 Property and Costs Not Covered ................................................................... ................................................................. 2 Business Income ..................................................................................................... ................................................................. 2 Covered Causes of Loss .................................................................................... ................................................................. 3 Limitations .................................................................................................................... ................................................................. 3 Additional Coverages ........................................................................................... ................................................................. 4 Coverage Extensions ........................................................................................... 1 ................................................................. EXCLUSIONS 14 LIMITS OF INSURANCE ................................................................................................................................................................ 18 Inflation Guard ............................................................................................................................................................................... 18 Business Personal Property Limit - Seasonal Increase ............................................................................... 19 ni inTio? cc __. 19 PROPERTY LOSS CONDITIONS ........................................................................................................................................... 19 COMMERCIAL PROPERTY CONDITIONS ..................................................................................................................... 24 Concealment, Misrepresentation or Fraud ................................................................... ............................................ 24 Control of Property ....................................................................................................................... ............................................ 24 Insurance Under Two or More Coverages ..................................................................... ............................................ 24 Legal Action Against Us ................. ............................... ............................................................ ........................................... 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Liberalization ....................._ 24 . . . . . . . . . . . . . . . . . . . . . . . . . .................. No Benefit to Bailee ...................................................................................................................... ............................................ 24 Otherlnsurance ................................................................................................................................ ........................................._ 24 Policy Period, Coverage Territory ........................................................................................ ........................................... 24 Transfer of Rights of Recovery Against Others to Us ............................................. ........................................... 24 Coinsurance ....................................................................................................................................... ........................................... 25 Mortgageholders .......................................................................................................................... ............................................25 PROPERTY DEFINITIONS .........................................................................................................................................................26 MP TI 30 08 01 Page 1 of 1 BUSINESSOWNERS BUSINESSOWNERS PROPERTY COVERAGE SPECIAL FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "bur" refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION G - PROP- ERTY DEFINITIONS. A. COVERAGE - BUILDING, BUSINESS PER- SONAL PROPERTY AND BUSINESS INCOME 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 a Covered Cause of Loss. We will pay for the actual loss of Business In- come you sustain due to the necessary "suspen- sion" of your "operations" during the "period of restoration". The "suspension" must be caused by direct physical loss of or damage to property at the described premises. With respect to loss of or damage to personal property in the open or per- sonal property in a vehicle, the described prem- ises include the area within 1,000 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 the portion of the building which you rent, lease or occupy and any area within the building or on the site at which the described premises are located, if that area serv- ices, or is used to gain access to, the described premises. 1. Covered Property Covered Property, as used in this Coverage Form, means the type of property described in this section, A.1., and limited in A.2., Prop- erty and Costs Not Covered, if a Limit of In- surance is shown in the Declarations for that type of property. a. Building, meaning the building or struc- ture described in the Declarations, in- cluding: (1) Completed additions; (2) Fixtures, including outdoor fixtures; (3) Permanently attached: (a) Machinery; and (b) Equipment; (4) Personal property owned by you that is used to maintain or service the building or structure or the premises, including: (a) Fire extinguishing equipment; (b) Outdoor furniture; (c) Floor coverings; (d) Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering; (e) Lawn maintenance and snow re- moval equipment; and (f) Alarm systems; (5) If not covered by other insurance: (a) Alterations and repairs to the building or structure; (b) Materials, equipment, supplies and temporary structures, on or within 1,000 feet of the described premises, used for making al- terations or repairs to the building or structure, b. Business Personal Property located in or on the buildings described in the Dec- larations or in the open (or in a vehicle) within 1,000 feet of the described prem- ises, including: (1) Property owned by you and used in your business; (2) Property of others that is in your care, custody or control; (3) Your use interest as tenant in im- provements and betterments. Im- provements and betterments are fix- MP T1 02 01 00 Page 1 of 28 BUSINESSOWNERS tures, alterations, installations or ad- (1) Bridges, walks, roadways, patios or ditions: other paved surfaces; (a) Made a part of the building or (2) Retaining walls not part of the build- structure you occupy or lease but ing described in the Declarations; do not own; and (3) Fences, trees, shrubs and plants (b) You acquired or made at your (other than "stock" of trees, shrubs or expense but are not permitted to plants), or lawns (including fairways, remove; greens and tees); or (4) "Money" and "Securities". (4) Outdoor radio or television antennas, 2. Property and Costs Not Covered (including satellite dishes) and in- Unless the following is added by endorse- cluding their lead-in wiring, masts or ment to this policy, Covered Property does towers not include: except as provided in the Outdoor Prop- a. Aircraft; erty Coverage Extension; b. (1) Automobiles held for sale; i. Watercraft (including motors, equipment and accessories) while afloat; (2) Vehicles or self-propelled machines Accounts, bills, deeds, or evidences of that are: debt; (a) Required to be licensed if used k. The cost to research, replace or restore on public roads; or the information on valuable papers and (b) Operated principally away from records, including those which exist on the described premises; electronic or magnetic media, except as This paragraph does not apply to: provided in the Valuable Papers Cover- (a) Vehicles or self-propelled ma- age Extension; chines or autos you manufacture, L Property that is covered under another process or warehouse; coverage form or endorsement of this or (b) Vehicles or self-propelled ma- any other policy in which it is more spe- chines, other than autos, you cifically described, except for the excess hold for sale; or of the amount due (whether you can col- lect on it or not) from that other insurance; (c) Trailers, but only to the extent m. Underground pipes, flues, drains or tun- provided for in the Coverage Ex- nels, whether or not connected to build- tension for Non-Owned Detached ings; Trailers. c. Bulkheads, piers pilings wharves or n. Collections whose value is based on an- , , docks; tiquity or rarity; and d. Dams and dikes; o. Bullion, gold, silver, platinum and other precious alloys or metals, except if they e. Contraband, or property in the course of are used in your "operations" (theft limita- illegal transportation or trade; tion applies). f. The cost of excavating, grading, backfill- 3. Business Income ing or filling (except those costs made necessary due to repair of buildings in- sured under this policy from a Covered (1) Net Income (Net Profit or Loss before Cause of Loss), reclaiming or restoring income taxes) that would have been land or water; earned or incurred; g. Water or land whether in its natural state (2) Continuing normal operating ex- or otherwise (including land on which the penses incurred, including payroll; property is located), growing crops or (3) Includes "Rental Value"; and standing timber; h. The following property while outside of (4) Includes "Maintenance Fees" if you buildings: are a condominium association. Page 2 of 28 MP T1 02 01 00 BUSINESSOWNERS b. If the necessary "suspension" of your "operations" produces a Business Income loss payable under this policy, we will also pay for the actual loss of Business Income you sustain during the period that: (1) Begins on the date property is actu- ally repaired, rebuilt or replaced and "operations" are resumed; and (2) Ends on the earlier of: (a) The date you could restore your "operations" with reasonable speed, to the level which would generate the Business Income amount that would have existed if no direct physical loss or damage occurred; or (b) Sixty consecutive days after the date determined in b.(1) above. However, this extended Business Income does not apply to loss of Business In- come incurred as a result of unfavorable business conditions caused by the impact of the Covered Cause of Loss in the area where the described premises are lo- cated. Loss of Business Income must be caused by direct physical loss or damage at the described premises caused by or result- ing from a Covered Cause of Loss. C. We will only pay for loss of Business In- come that occurs within 12 consecutive months immediately following the date of direct physical loss or damage. 4. Covered Causes of Loss RISKS OF DIRECT PHYSICAL LOSS unless the loss is: a. Limited in Paragraph A.S., Limitations; or b. Excluded in Section S., Exclusions. 5. Limitations a. We will not pay for loss of or damage to (1) The "interior of any building or struc- ture" or to personal property in the building or structure, caused by rain, snow, sleet or ice whether driven by wind or not, unless: (a) The building or structure first sustains actual damage to the roof or walls by wind or hail and then we will pay only for the loss to the "interior of the building or structure" or the personal prop- erty in the building or structure that is caused by rain, snow, sleet, sand or dust entering the building(s) or structure(s) through openings in the roof or walls made by direct action of wind; or (b) The loss or damage is caused by or results from thawing of snow, sleet or ice on the building or structure. (2) Steam boilers, steam pipes, steam engines, or steam turbines caused by or resulting 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 passages through which the gases of combus- tion pass. (3) Hot water boilers or other water heating equipment caused by or re- sulting from any condition or event inside such boilers or equipment, other than explosion, b. We will not pay more than $500 in any one occurrence for loss of or damage to glass that is part of the building or struc- ture, regardless of the number of panes, plate or similar units of glass. Subject to this $500 limit on all loss or damage, we will not pay more than $100 for any one pane, plate, multiple plate insulating unit, radiant or solar heating panel, jalousie, louver or shutter. However, this limitation does not apply to loss or damage by the "specified causes of loss", except van- dalism. If you are a building owner and Exterior Building Glass is shown on the Declara- tions or a tenant who has purchased op- tional Exterior Building Glass, this limita- tion does not apply. c. 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: (1) Live animals or birds, and then only if they are killed or their destruction is made necessary. MP T1 02 01 00 Page 3 of 28 BUSINESSOWNERS (2) Fragile articles such as glassware, statuary, marbles, chinaware and porcelains, if broken. This limitation does not apply to: (a) Glass that is part of a building or structure; (b) Containers of property held for sale; or (c) Photographic or scientific instru- ment lenses. d. For loss or damage by "theft", the most we will pay in any one occurrence for the following types of property is: (1) $2,500 for all furs, fur garments and garments trimmed with fur. (2) $5,000 for all jewelry, watches, watch movements, jewels, pearls, precious and semi-precious stones, bullion, gold, silver, platinum and other pre- cious alloys or metals. This limit does not apply to jewelry and watches worth $100 or less per item. (3) $2,500 for all patterns, dies, molds and forms. e. We will not pay for any loss or damage caused by any of the following even if they are Covered Causes of Loss if the building where loss or damage occurs has been "vacant" for more than 60 con- secutive days before that loss or damage occurs: (1) Vandalism; (2) Sprinkler Leakage, unless you have protected the system against freez- ing; (3) Building glass breakage; (4) Water Damage; (5) Theft; or (6) Attempted theft. With respect to Covered Causes of Loss other than those listed in 5.e.(1) through 5.e.(6) above, we will reduce the amount we would otherwise pay for the loss or damage by 15%. f. We will not pay for any loss of Business Income caused by direct physical loss of or damage to Electronic Media and Rec- ords after the longer of: (1) 60 consecutive days from the date of direct physical loss or damage; or (2) The period, beginning with the date of direct physical loss or damage, nec- essary to repair, rebuild or replace with reasonable speed and similar quality, other property at the de- scribed premises which suffered loss or damage in the same occurrence. Electronic Media and Records are: (1) Electronic data processing, recording or storage media such as films, tapes, discs, drums or cells; (2) Data stored on such media; or (3) Programming records used for elec- tronic data processing or electroni- cally controlled equipment. Example No. 1: A Covered Cause of Loss damages a computer on June 1. It takes until Sep- tember 1 to repair and replace the prop- erty at the premises, and until October 1 to restore the computer 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 No. 2: A Covered Cause of Loss results in the loss of data processing programming re- cords on August 1. The records are re- placed on October 15. We will only pay for the Business Income loss sustained during the period August 1 - September 29 (60 consecutive days). Loss during the period September 30 - October 15 is not covered. 6. Additional Coverages Unless otherwise stated, payments made un- der the following Additional Coverages will not increase the applicable Limits of Insur- ance. a. Arson and Theft Reward We will pay a reward of 25% of an in- curred claim up to a maximum of $5,000 for information leading to: Page 4 of 28 MP T7 02 01 00 BUSINESSOWNERS (1) an arson conviction in connection with a covered fire or explosion loss, or (2) a theft conviction in connection with a covered theft loss. This is the most we will pay for any one occurrence under this policy or any com- bination of policies. The amount payable under this Additional Coverage is in addition to the Limits of In- surance. b. Civil Authority We will pay for the actual loss of Busi- ness Income you sustain and necessary Extra Expense caused by action of civil authority that prohibits access to the de- scribed premises due to direct physical loss of or damage to property within the jurisdiction invoking the civil authority. Such loss or damage must be caused by or resulting from a Covered Cause of Loss. This coverage will apply for a period of up to two consecutive weeks from the date of that action of civil authority. c. Debris Removal (1) Subject to Paragraphs (3) and (4), we will pay your necessary and reason- able expense to remove debris of Covered Property caused by or re- sulting from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date of direct physi- cal loss or damage. (2) Debris Removal does not apply to costs to: (a) Extract "pollutants" from land or water; or to the Covered Property that has sustained loss or damage. (b) Subject to (a) above, the amount we will pay for debris removal expense is limited to 25% of the sum of the deductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has sus- tained loss or damage. (4) We will pay up to an additional $25,000 for debris removal expense, for each location, in any one occur- rence of physical loss or damage to Covered Property, if one or both of the following circumstances apply: (a) The total of the actual debris re- moval expense plus the amount we pay for direct physical loss or damage exceeds the Limit of In- surance on the Covered Property that has sustained loss or dam- age. (b) The actual debris removal ex- pense exceeds 25% of the sum of the deductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has sustained loss or damage. Therefore, if (4)(a) and/or (4)(b) ap- ply, our total payment for direct physical loss or damage and debris removal expense may reach but will never exceed the Limit of Insurance on the Covered Property that has sustained loss or damage, plus $25,000. (5) Examples The following examples assume that coverage is not written on a coinsur- ance basis. (b) Remove, restore or replace pol- Example #1 luted land or water. Limit of Insurance $225,000 (3) Subject to the exceptions in Para- graph (4), the following provisions Amount of Deductible $500 apply: Amount of Loss $125,000 (a) The most we will pay for the total Amount of Loss Payable $124,500 of direct physical loss or damage ($125,000 - $500) plus debris removal expense is Debris Removal Expense $25,000 the Limit of Insurance applicable MP T1 02 01 00 Page 5 of 28 BUSINESSOW NERS Debris Removal expense in this example is $50,500; Expense Payable $25,000 $24,500 is not covered. ($25,000 is 20% of $125,000) d. Employee Dishonesty The debris removal expense is less (1) We will pay for loss of or damage to than 25% of the sum of the loss pay- Business Personal Property resulting able and the debris removal expense directly from "Employee Dishonesty" ($124,500 + $25,000 = $149,500) is anywhere within the "coverage terri- less than the Limit of Insurance. tory". Therefore, the full amount of debris removal expense is payable in accor- (2) The most we will pay for loss or dam- dance with the terms of Paragraph age in any one occurrence is the (3), smallest of the following: Example #2 (a) The limit for Business Personal Limit of Insurance $225 0W Property stated in the Declara- , tions (If more than one building Amount of Deductible $500 containing Business Personal Amount of Loss $200,000 Property is insured, the limit at mount of Loss Payable $199 A 500 $ the building having the highest , ($200,00 -$500) Business Personal Property limit will apply.); or Debris Removal Expense $75,000 (b) $250,000 (if the Business Per- Debris Removal Expense Payable sonal Property limit at any build- Basic Amount $25,500 ing is greater than this amount). Additional Amount $25,000 (3) Occurrence means all loss caused by The basic amount payable for debris or involving the same "employee(s)", removal expense under the terms of whether the result of a single act or Paragraph (3) is calculated as fol- series of acts. lows: (4) We will pay for loss or damage you $20,0000 + $500) x .25 = sustain through acts committed or $50,000; caapped at $25,500. The cap capped events occurring during the Policy applies because the sum of the loss Period. Regardless of the number of payable ($199,500) and the basic years this insurance remains in force amount payable for debris removal or the number of premiums paid, no Limit of Insurance cumulates year to expense ($25,500) cannot exceed year or period to period. the Limit of Insurance ($225,000). (5) We will not pay for loss resulting from The additional amount payable for the dishonest acts of any "employee": debris removal expense is provided in accordance with the terms of (a) If coverage for that "employee" Paragraph (4), because the debris was either cancelled or excluded excluded removal expense ($75,000) exceeds from any previous insurance 25% of the loss payable plus the de- icy of yours providing employee ductible ($75,000 is 37.5% of dishonesty coverage. $200,000), and because the sum of (b) Occurring immediately after dis- the loss payable and debris removal covery by: expense ($199,500 + $75,000 = i. You; or $274,500) would exceed the Limit of ii. Any of your partners, officers Insurance ($225,00). The additional or directors not in collusion amount of covered debris removal with the "employee", of any expense is $25,000, the maximum fraudulent dishonest act payable under Paragraph (4). Thus committed by that "em- the total payable for debris removal ployee" before or after being employed by you. Page 6 of 28 MP T1 02 01 00 BUSINESSOWNERS (c) Occurring after the effective date stated in our written notice to you that the "employee" is no longer covered. That effective date will not be less than 15 days after the date we mail the notice. (6) We will pay for covered loss or dam- age only if discovered no later than one year from the end of the Policy Period. (7) If, during the period of any prior Em- ployee Dishonesty insurance, you (or any predecessor in interest) sus- tained loss or damage that you could have recovered under that insurance, except that the time within which to discover loss or damage has expired, we will pay for it under this Additional Coverage, subject to the following: (a) This insurance became effective at the time of cancellation or ter- mination of the prior insurance; and (b) The loss or damage would have been covered by this insurance had it been in effect when the acts or events causing the loss or damage were committed or oc- curred. rental of property or temporary replace- ment of damaged property. The most we will pay under this Addi- tional Coverage is $10,000 in any one occurrence. f. Extra Expense (1) We will pay the necessary and rea- sonable Extra Expenses you incur during the "period of restoration" that you would not have incurred if there had been no direct physical loss of or damage to property at the premises described in the Declarations. 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 per- sonal property in a vehicle, the de- scribed premises include the area within 1,000 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 are located, your premises means: (a) The portion of the building which you rent, lease or occupy; and (8) The insurance provided under para- graph (7) above is part of, not in ad- dition to the Limit of Insurance ap- plying to this Additional Coverage and is limited to the lesser of the amount recoverable under: (a) This Additional Coverage, as of its effective date; or (b) The prior Employee Dishonesty insurance, had it remained in ef- fect. e. Expediting Expenses In the event of covered loss or damage, we will pay for the reasonable and neces- sary additional expenses you incur to make temporary repairs, expedite perma- nent repairs, or expedite permanent re- placement at the premises sustaining loss or damage. Expediting expenses include overtime wages and the extra cost of ex- press or other rapid means of transporta- tion. Expediting expenses do not include expenses you incur for the temporary (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 ac- cess to, the described premises. (2) Extra Expense means expense in- curred: (a) To avoid or minimize the "sus- pension" of business and to con- tinue "operations": (i) At the described premises; or (ii) At replacement premises or at temporary locations, in- cluding relocating expenses, and costs to equip and oper- ate the replacement or tem- porary locations. (b) To minimize the "suspension" of business if you cannot continue "operations". (c) (i) To repair or replace any property; or MP T1 02 01 00 Page 7 of 28 BUSINESSOWNERS (ii) To research, replace or re- (b) $250,000 (if the Business Per- store the lost information on sonal Property limit at any one damaged valuable papers building is greater than this and records; amount). to the extent it reduces the (3) Occurrence means all loss caused by amount of loss that otherwise any person or in which that person is would have been payable under concerned or implicated, either re- Business Income. sulting from a single act or any num- We will only pay for Extra Expense that ber of such acts, whether the loss in- occurs within 12 consecutive months after volves one or more instruments. the date of direct physical loss or dam- (4) We will pay for loss that you sustain age. This Additional Coverage is not through acts committed or events oc- subject to the Limits of Insurance. curring during the Policy Period. Re- g. Fire Department Service Charge gardless of the number of years this When the fire department is called to insurance remains in force or the save or protect Covered Property from a number of premiums paid, no Limit of Covered Cause of Loss, we will pay up to Insurance cumulates from year to $1,000 for your liability for fire department year or period to period. service charges: (5) We will not pay for loss resulting from (1) Assumed by contract or agreement any dishonest or criminal acts com- prior to loss; or mitted by you or any of your partners, (2) Required by local ordinance. employees, directors or trustees whether acting alone or in collusion The amount payable under this Additional with other persons. Coverage is in addition to the Limits of In- (6) We will pay for covered loss discov- surance. ered no later than one year from the h. Forgery or Alteration end of the Policy Period. (1) We will pay for loss anywhere in the (7) If, during the period of any prior For- "coverage territory" resulting directly gery or Alteration insurance, you (or from "Forgery" or Alteration of, on, or any predecessor in interest) sus- in any check, draft, promissory note, tained loss or damage that you could bill of exchange, or similar written have recovered under that insurance, promise, order or direction to pay a except that the time within which to sum certain money, made or drawn discover loss or damage has expired, by or drawn upon you, or made or we will pay for it under this Additional drawn by one acting as an agent or Coverage provided: claiming to have been so made or (a) This insurance became effective drawn. at the time of cancellation or ter- (2) The most we will pay for loss or dam- mination of the prior insurance; age in any one occurrence, including and legal defense is the smallest of the (b) The loss or damage would have following: been covered by this insurance (a) The limit for Business Personal had it been in effect when the Property stated in the Declara- acts or events causing the loss or tions (If more than one building damage were committed or oc- containing Business Personal curred. Property is insured, the limit at (8) The insurance provided under para- the building having the highest graph (7) above is part of, not in ad- Business Personal Property limit dition to the Limit of Insurance ap- will apply.); or plying to this Additional Coverage Page 8 of 28 MP T7 02 01 00 BUSINESSOWNERS and is limited to the lesser of the law which requires any insured or amount recoverable under: others to test for, monitor, clean up, (a) This Additional Coverage up to remove, contain, treat, detoxify or the applicable Limit of Insurance neutralize, or in any way respond to, under this Coverage Form, as of or assess the effects of "pollutants". its effective date; or (6) The most we will pay under this Addi- (b) The prior Forgery or Alteration in- tional Coverage, for each described surance, had it remained in ef- building insured under this Coverage fect. Form, is $5,000. (9) If you are sued for refusing to pay The amount payable under this Addi- any covered instrument on the basis tional Coverage is additional insur- that it has been forged or altered, and ance. you have our written consent to de- (7) With respect to this Additional Cover- fend against the suit, we will pay for age: any reasonable legal expenses that you incur and pay in that defense. (a) will not pay for the Increased The amount we will pay for these le- Cost of C o Construction; gal expenses will be part of and not in (f) Until the property is actually addition to the Limit of Insurance. repaired or replaced, at the I. Increased Cost of Construction same or another premises; and (1) This Additional Coverage applies only (ii) Unless the repairs or ve- to buildings. placement are made as soon (2) In the event of damage by a Covered as reasonably possible after Cause of Loss to a building that is the loss or damage, not to Covered Property, we will pay the in- exceed two years. We may creased costs incurred to comply with extend this period in writing enforcement of an ordinance or law in during the two years. the course of repair, rebuilding or re- (b) If the building is repaired or re- placement of damaged parts of that placed at the same premises, or property, subject to the limitations if you elect to rebuild at another stated in f.(3) through f.(9) of this Ad- premises, the most we will pay ditional Coverage. for under this Additional Cover- (3) The ordinance or law referred to in age is the increased cost of con- L(2) of this Additional Coverage is an struction at the same premises. ordinance or law that regulates the (c) If the ordinance or law requires construction or repair of building or relocation to another premises, establishes zoning or land use re- the most we will pay for under quirements at the described prem- this Additional Coverage is the ises, and is in force at the time of increased cost of construction at loss. the new premises. (4) Under this Additional Coverage, we (8) This Additional Coverage is not sub- will not pay any costs due to an ordi- ject to the terms of the Ordinance or nance or law that: Law Exclusion, to the extent that such Exclusion would conflict with the (a) You were required to comply with provisions of this Additional Cover- before the loss, even when the age. building was undamaged; and (b) You failed to comply with. (9) The costs addressed in the Loss Payment - Building and Personal (5) Under this Additional Coverage, we Property Property Loss Condition do will not pay any costs associated with not include the increased cost attrib- the enforcement of an ordinance or utable to enforcement of an ordi- MP T1 02 01 00 Page 9 of 28 BUSINESSOWNERS nance or law. The amount payable under this Additional Coverage, as stated in i.(6) of this Additional Cov- erage, is not subject to such limita- tion. j. Pollutant Cleanup and Removal We will pay your necessary and reason- able expense to extract "pollutants" from land or water at the described premises, if the discharge, dispersal, seepage, migra- tion, release or escape of the "pollutants" is caused by or results from a "specified cause of loss" which occurs: (1) On the described premises; (2) To Covered Property; and (3) During the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date on which the "specified cause of loss" occurs. This Additional Coverage does not apply to costs to test for, monitor or assess the existence, concentration or effects of "pollutants". But we will pay for testing which is performed in the course of ex- tracting the "pollutants" from the land or water. The most we will pay for loss at each de- scribed premises under this Additional Coverage is $10,000 in any one year commencing with policy inception. The amount payable under this Additional Coverage is in addition to the Limits of In- surance. k. Preservation of Property If it is necessary to move Covered Prop- erty from the described premises to pre- serve it from loss or damage by a Cov- ered Cause of Loss, we will pay for: (1) Any direct physical loss or damage to this property: (a) While it is being moved or while temporarily stored at another lo- cation; and (b) Only if the loss or damage occurs within 30 days after the property is first moved; and (2) The cost to remove and return the property from the described prem- ises. Coverage will end when any of the fol- lowing first occurs: (1) When the policy is amended to pro- vide insurance at the new location; (2) The property is returned to the origi- nal location; or (3) This policy expires. f. Temporary Relocation of Property If Covered Property is removed from the described premises and stored temporar- ily at a location you own, lease or operate while the described premises is being renovated or remodeled, we will pay for loss or damage to that stored property: (1) Caused by or resulting from a Cov- ered Cause of Loss; (2) Up to $50,000 at each temporary lo- cation; and (3) During the storage period of up to 90 consecutive days but not beyond ex- piration of this policy; unless the stored property is more spe- cifically insured. m. Water Damage, Other Liquids, Powder or Molten Material If covered loss or damage caused by or resulting from water or other liquid, pow- der or molten material occurs, we will also pay the cost to tear out and replace any part of the building or structure to repair damage to the system or appliance from which the water or other substance es- capes. We will not pay the cost to repair any de- fect to a system or appliance from which the water, other liquid, powder or molten material escapes. 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 sub- stance from an automatic fire protec- tion system; or (2) Is directly caused by freezing. Page 10 of 28 MP Tt 02 01 00 BUSINESSOWNERS 7. Coverage Extensions We will charge you additional pre- Subject to the Exclusions, Conditions and mium for locations reported from the Limitations of this form, you may extend this date you acquire the property. insurance as indicated below. c. Business Personal Property Off Unless otherwise stated, payments made un- Premises der the following Coverage Extensions will (1) Your Business Personal Property in- not increase the applicable Limits of Insur- surance is extended to apply to such ance. property while it is in course of transit a. Appurtenant Buildings and Structures to and from the described premises You may extend the insurance that ap- or temporarily away from the de- plies to your Buildings and Business Per- scribed premises, if it is: sonal Property at the described premises, (a) Temporarily at a location you do to cover direct loss in any one occurrence not own, lease or operate; or by a Covered Cause of Loss to incidental (b) At any fair, trade show or exhibi- appurtenant buildings or structures, within tion at a premises you do not own 1,000 feet, including Business Personal or regularly occupy. Property within these buildings or struc- tures. Incidental appurtenant buildings or (2) This Extension does not apply to structures include but are not limited to property: storage buildings, garages, pump houses, (a) While in the custody of the United above ground tanks, which have not been States Postal Service; specifically described in the Declarations. (b) Rented or leased to others; The most we will pay for loss or damage under this Extension is 10% of the Limit (c) After delivery to customers; of Insurance for Buildings and 10% of the (d) In the care, custody or control of Limit of Insurance for Business Personal your salespersons, unless the Property shown in the Declarations but property is in such care, custody not more than $50,000 combined Building or control at a fair, trade show or and Business Personal Property in any exhibition; or one occurrence. (e) Temporarily at a premises for b. Business Income and Extra Expense - more than 60 consecutive days, Newly Acquired Locations except "money" and "securities" (1) Your Business Income and Extra Ex- at a "banking premises". pense Coverage is extended to apply d. Claim Data Expense to property at any location you ac- The insurance under this extension will quire by purchase or lease (other be in addition to the applicable Limits of than at fairs or exhibitions). Insurance. (2) The most we will pay under this Ex- The insurance provided by this Coverage tension for the sum of Business In- Form is extended to apply to the reason- come and Extra Expense incurred is able expense you incur in preparing claim $250,000 at each location. data when we require it. This includes the (3) Insurance under this extension for cost of taking inventories, making ap- each newly acquired location will end praisals, preparing income statements, when any of the following first occurs: and preparing other documentation to (a) This policy expires; show the extent of loss. (b) 60 days expire after you acquire The most we will pay for preparation of or begin to construct the property; claim data under this Extension is $1,000. (c) You report the location to us; We will not pay for any expenses in- curred, directed or billed by or payable to (d) The Business Income or Extra claim adjusters or their associates or Expense is more specifically in- subsidiaries or any costs as provided by sured. MP T1 02 01 00 Page 1 f of 28 BUSINESSOWNERS in the Property Loss Condition - Ap- praisal. e. Exterior Building Glass (1) The insurance provided by this Cov- erage Form is extended to cover di- rect physical loss of or damage to glass, including glass breakage and damage to glass by chemicals acci- dentally or maliciously applied to glass: (a) If the Building described in the Declarations is insured under this policy; or (b) If only Business Personal Prop- erty is insured and coverage for glass is shown as included in the Declarations. This coverage applies to all glass in the exterior walls of a described building (including all lettering and ornamentation) and supercedes all limitations in this policy that apply to such exterior building glass. (2) We will also pay for necessary ex- penses incurred to: (a) Put up temporary plates or board up openings; (b) Repair or replace encasing frames; and (c) Remove or replace obstructions. (3) Section A.5.b. Limitations and Sec- tion B., Exclusions, do not apply to this Extension except for. (a) Governmental Action; (b) Nuclear Hazard; and (c) War and Military Action. (4) We will not pay for loss or damage caused by or resulting from: (a) Wear and tear; (b) Hidden or latent defect; (c) Corrosion; or (d) Rust. f. Money Orders and Counterfeit Paper Currency Your Business Personal Property is ex- tended to apply to loss due to the good faith acceptance of: (1) Any U.S. or Canadian post office or express money order, issued or claiming to have been issued by any post office or express company, if the money order is not paid upon pres- entation; or (2) Counterfeit United States or Cana- dian paper currency; in exchange for merchandise, "money" or services or as part of a normal business transaction. g. Newly Acquired or Constructed Prop- erty The insurance under this Extension will be in addition to the applicable Limits of Insurance. (1) Buildings Insurance applies to; (a) Your new buildings or additions while being built on the described premises or newly acquired premises, including materials, equipment, supplies and tempo- rary structures, on or within 1,000 feet of the premises; (b) Buildings you acquire at loca- tions, other than the described premises; and (c) Buildings you are required to in- sure under a written contract. The most we will pay for loss or dam- age under this Extension is $250,000 at each location. (2) Your Business Personal Property (a) When a Limit of Insurance is shown in the Declarations for Business Personal Property, you may extend that insurance to ap- ply to that type of property at a building you newly acquire: (i) at a location described in the Declarations; and (ii) at any other location you ac- quire by purchase of lease (other than at fairs, trade shows or exhibitions). The most we will pay for loss or dam- age under this Extension is $250,000 Page 12 of 28 MP T1 02 01 00 BUSINESSOWNERS in total at each newly acquired prem- ises. (3) Period Of Coverage With respect to insurance on or at each newly acquired or constructed property, coverage will end when any of the following first occurs: (a) This policy expires; (b) 60 days expires after you acquire the property or begin construction of that part of the building that would qualify as covered prop- erty; or (c) You report values to us. We will charge you additional pre- mium for values reported from the date you acquire the property or be- gin construction of that part of the building that would qualify as covered property. h. Non-Owned Detached Trailers (1) You may extend the insurance that applies to your Business Personal Property to apply to loss or damage to trailers that you do not own, pro- vided that: (a) The trailer is used in your busi- ness; (b) The trailer is in your care, cus- tody or control at the premises described in the Declarations; and (c) You have a contractual responsi- bility to pay for loss or damage to the trailer. (2) We will not pay for any loss or dam- age that occurs: (a) While the trailer is attached to any motor vehicle or motorized conveyance, whether or not the motor vehicle or motorized con- veyance is in motion; (b) During hitching or unhitching op- erations, or when a trailer be- comes accidentally unhitched from a motor vehicle or motorized conveyance. (3) The most we will pay for loss or dam- age under this Extension is $5,000. (4) This insurance is excess over the amount due (whether you can collect on it or not) from any other insurance covering such property. L Outdoor Property The insurance under this Extension will be in addition to the applicable Limits of Insurance. The insurance provided by this Coverage Form is extended to apply to your outdoor property on the described premises as follows: (1) Fences, retaining walls not part of a building, lawns (including fairways, greens and tees), trees, shrubs and plants (other than "stock" of trees, shrubs, or plants), bridges, walks, roadways, patios or other paved sur- faces for loss or damage by the fol- lowing Causes of Loss: (a) Fire; (b) Lightning; (c) Explosion; (d) Riot or Civil Commotion; or (e) Aircraft. (2) Radio and television antennas (in- cluding Satellite dishes) for loss or damage by the Causes of Loss listed above and; (a) Windstorm; (b) Hail; (c) Falling Objects; (d) Vehicles; (e) Sinkhole Collapse; or (f) Volcanic Action The most we will pay for loss or damage under this Extension is $5,000 at each described premises, but not more than $1,000 for any antenna. j. Personal Property and Effects Your Business Personal Property insur- ance is extended to apply to personal property and effects (other than Business Personal Property) owned by you, your officers, your partners or members, your managers or your employees. Such property must be located on a premises described in the Declarations. MP T1 02 01 00 Page 13 of 28 BUSINESSOWNERS The most we will pay for loss or damage under this Extension is $5,000 at each described premises. k. Signs Your Building or Business Personal Property insurance is extended to cover outdoor signs attached to the building or on or within 1,000 feet of the described premises. 1. Spoilage - Consequential Loss Your Business Personal Property Insur- ance is extended to cover consequential loss to your business personal property caused by change in temperature or hu- midity. However, the change must result from a Covered Cause of Loss damaging the following types of equipment situated within the building described in the Decla- rations: Refrigerating, cooling, humidifying, air- conditioning, heating, generating or con- verting power; and connections, supply or transmission lines and pipes associated with the above equipment. m. Theft Damage to Rented Property Your Business Personal Property insur- ance is extended to cover damage by theft or attempted theft to that part of a building you occupy and which contains: (1) Business Personal Property; or (2) Equipment within the building used for maintenance or service of the building. We will not pay for damage: (a) Caused by or resulting from fire or explosion; or (b) To glass or glass lettering. This Extension applies only to a building where you are a tenant and are liable for such damage. n. Valuable Papers and Records - Cost of Research The insurance under this extension will be in addition to the applicable Limits of Insurance. Your Business Personal Property insur- ance is extended to apply to your costs to research, replace or restore the lost in- formation on lost or damaged valuable papers and records, including those which exist on electronic or magnetic me- dia, for which duplicates do not exist. The most we will pay under this Extension is $1,000 at each described premises. B. EXCLUSIONS 1. We will not pay for loss or damage caused di- rectly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. a. Ordinance or Law The enforcement of any ordinance or law: (1) Regulating the construction, use or repair of any property; or (2) Requiring the tearing down of any building, including the cost of remov- ing its debris. This exclusion applies whether the loss results from: (a) An ordinance or law that is en- forced even if the property has not been damaged; or (b) The increased costs incurred to comply with an ordinance or law in the course of construction, re- pair, renovation, remodeling or demolition of property, or removal of its debris, following a physical loss to that property. b. Earth Movement (1) Earthquake, including any earth sinking, rising or shifting related to such event; (2) Landslide, including any earth sink- ing, rising or shifting related to such event; (3) Mine subsidence, meaning subsi- dence of a man-made mine, whether or not mining activity has ceased; (4) Earth sinking (other than sinkhole collapse), 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, ero- sion, improperly compacted soil and the action of water under the ground surface. Page 14 of 28 MP Ti 02 01 00 BUSINESSOWNERS But if Earth Movement, as described of the failure or fluctuation occurs away in b. (1) through b.(4) above results from the described premises. in fire or explosion, we will pay for the But if the failure or fluctuation of power or loss or damage caused by that fire or other utility service results in a Covered explosion. Cause of Loss, we will pay for the loss or (5) Volcanic eruption, explosion or effu- damage resulting from that Covered sion. But if volcanic eruption, explo- Cause of Loss. sion of effusion results in fire or vol- f. War and Military Action canic action, we will pay for the loss (1) War, including undeclared or civil that fire or vol- or damage caused by canic action. war; Volcanic action means direct loss or (2) Warlike action by a military force, in- damage resulting from the eruption of cluding action in hindering or de- a volcano, when the loss or damage fending against an actual or expected is caused by: attack, by any government, sovereign or other authority using military per- (a) Airborne volcanic blast or air- sonnel or other agents; or borne shock waves; (3) Insurrection, rebellion, revolution, (b) Ash, dust, or particulate matter; usurped power or action taken by or governmental authority in hindering (c) Lava flow. or defending against any of these. All volcanic eruptions that occur g. Water within any 168-hour period will con- (1) Flood, surface water, waves, tides, stitute a single occurrence. tidal waves, overflow of any body of Volcanic action does not include the water, or their spray, all whether cost to remove ash, dust or particu- driven by wind or not; late matter that does not cause direct (2) Mudslide or mudflow; physical loss of or damage to Cov- ered Property. (3) (a) Water or sewage that backs up or overflows from a sewer, drain or c. Governmental Action sump. Seizure or destruction of property by or- (b) Except for septic tanks, cesspool der of governmental authority. systems and exterior drains, this But we will pay for loss or damage exclusion does not apply when caused by or resulting from acts of de- the cause of the water back-up or struction ordered by governmental sewage overflow occurs due to a authority and done at the time of a fire to blockage which originates on the prevent its spread, if the fire would be described premises. covered under this policy. (4) Water under the ground surface d. Nuclear Hazard pressing on, or flowing or seeping Nuclear reaction or radiation, or radioac- through: tive contamination, however caused. (a) Foundations, walls, floors or paved surfaces; But if nuclear reaction or radiation, or ra- dioactive contamination results in fire, we (b) Basements, whether paved or will pay for the loss or damage caused by not; or that fire. (c) Doors, windows or other open- e. Utility Services ings. The failure or fluctuation of power or other But if Water, as described in B.1.g.(1) utility service supplied to the described through (4) results in fire, explosion or premises, however caused, if the cause sprinkler leakage, we will pay for the loss MP T1 02 01 00 Page 15 of 28 BUSINESSOWNERS or damage caused by that fire, explosion or sprinkler leakage. h. Neglect Neglect of an insured to use reasonable means to save and preserve property from further damage at and after the time of loss. 1. Collapse of Buildings Collapse of buildings meaning an abrupt falling down or caving in of a building or substantial part of a building with the re- sult being that the building or substantial part of a building cannot be occupied for its intended purpose. (1) This exclusion does not apply to col- lapse of buildings if caused only by one or more of the following: (a) A "specified cause of loss"; (b) Decay, insect or vermin damage that is hidden from view, unless the presence of such decay or in- sect or vermin damage is known to an insured prior to collapse; (c) Weight of people or personal property; (d) Weight of rain that collects on a roof: or (e) Use of defective material or methods in construction, remod- eling or renovation if the collapse occurs during the course of con- struction, remodeling or renova- tion; or (f) Use of defective material or methods in construction, remod- eling or renovation if the collapse occurs after construction, remod- eling, or renovation is complete and is caused in part by a cause of loss listed in i.(1) (a) through (d) above. In the event collapse results in a Covered Cause of Loss, the Com- pany will be liable only for such re- sulting loss or damage by that Cov- ered Cause of Loss. (2) We will not pay for loss of or damage to the following types of property, if otherwise covered in this policy, un- der items L(1)(b) though L(1)(f) above, unless the loss or damage is a direct result of the collapse of a building: awnings, gutters and down- spouts, yard fixtures and outdoor swimming pools. If collapse results in a Covered Cause of Loss at the described premises, we will pay for the loss or damage caused by that Covered Cause of Loss. (3) A building or portion of a building that: (a) Is in imminent danger of abruptly falling down or caving in; or (b) Suffers a substantial impairment of structural integrity; is not considered a collapse but is considered to be in a state of immi- nent collapse. (4) As respects buildings in a state of imminent collapse, the Company will not pay for loss or damage unless the state of imminent collapse first mani- fests itself during the policy period and is caused only by one or more of the following which occurs during the policy period: (a) Fire; lightning; explosion; wind- storm or hail; aircraft or vehicles; riot or civil commotion; "sinkhole collapse"; weight of snow, ice or sleet; (b) Weight of people or personal property; (c) Weight of rain that collects on a roof; or (d) Use of defective material or methods in construction, remod- eling or renovation if the state of imminent collapse occurs during the course of construction, re- modeling or renovation. 2. We will not pay for loss or damage caused by or resulting from any of the following: a. Artificially generated electrical current, in- cluding electric arcing that disturbs elec- trical devices, appliances or wires unless caused by a "specified cause of loss". Page 16 of 28 MP T7 02 01 00 BUSINESSOWNERS But if artificially generated electrical cur- rent results in fire, we will pay for the loss or damage caused by fire. b. Delay, loss of use or loss of market. c. Smoke, vapor or gas from agricultural smudging or industrial operations. d. (1) Wear and tear; (2) Rust, corrosion, fungus, decay, dete- rioration, wet or dry rot, mold, hidden or latent defect of any quality in prop- erty that causes it to damage or de- stroy itself; (3) Smog; (4) Settling, cracking, shrinking or ex- pansion; (5) Nesting or infestation, or discharge or release of waste products or secre- tions, by insects, birds, rodents or other animals; (6) Mechanical or machinery breakdown (including rupture or bursting caused by centrifugal force). This exclusion does not apply to resultant loss or damage by fire, building glass break- age or elevator collision. (7) The following causes of loss to per- sonal property: (a) Dampness or dryness of atmos- phere; (b) Changes in or extremes of tem- perature; (c) Marring or scratching; (d) Evaporation, loss of weight, ex- posure to light or change in fla- vor, color, texture or finish; (e) Leakage; or (8) Contamination. But if an excluded cause of loss that is listed in 2.d.(1), 2.d.(2), 2.d.(3), 2.d.(4), 2.d.(5), 2.d.(7), 2.d.(8) results in a "speci- fied 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. e. Explosion of steam boilers, steam pipes, steam engines or steam turbines owned or leased by you, or operated under your control unless caused by a "specified cause of loss". But if explosion of steam boilers, steam pipes, steam engines or steam turbines results in fire or combus- tion explosion, we will pay for the loss or damage caused by that fire or combus- tion explosion. We will also pay for loss or damage caused by or resulting from the explosion of gases or fuel within the fur- nace of any fired vessel or within the flues or passages through which the gases of combustion pass. f. Continuous or repeated seepage or leak- age of water or other liquids that occurs over a period of 14 days or more. g. Water, other liquid, powder or molten material that leaks or flows from plumb- ing, heating, air conditioning or other equipment (except fire protection sys- tems) caused by or resulting from freez- ing, unless: (1) You do your best to maintain heat in the building or structure; or (2) You drain the equipment and shut off the water supply if the heat is not maintained, h. Dishonest or criminal acts by you, or any of your partners, "employees", directors or trustees: (1) Acting alone or in collusion with oth- ers; or (2) Whether or not occurring during the hours of employment. This exclusion does not apply to acts of destruction by your "employees", but "theft" by "employees" is not covered ex- cept as provided under the Employee Dishonesty Additional Coverage. L 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 by any person who is not an "employee". This exclusion does not apply to property in the custody of carriers for hire. j. Rain, snow, sand, dust, ice or sleet to personal property in the open. k. Discharge, dispersal, seepage, migration, release or escape of "pollutants" unless the release, discharge or dispersal is it- self caused by any of the "specified causes of loss". But if the discharge, dis- MP T1 02 01 00 Page 17 of 28 BUSINESSOWNERS persal, seepage, migration, release or escape of "pollutants" results in a "speci- fied cause of loss", we will pay for the loss or damage caused by that "specified cause of loss". 1. Default on any credit sale, loan, or similar transaction. m. 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 physi- cal evidence to show what happened to the property. This exclusion does not ap- ply to "money" and "securities". n. Loss of property or that part of any loss, the proof of which as to its existence or amount is dependent on: (1) Any inventory computation; or (2) A profit and loss computation. o. The transfer of property to a person or to a place outside the described premises on the basis of unauthorized instructions. This exclusion does not apply to loss or damage from "employee dishonesty". p. Loss of "money" or "securities" caused by or resulting from accounting or arithmetic errors or omissions. 3. We will not pay for loss or damage caused by or resulting from any of the following, but if an excluded cause of loss that is listed in 3.a. through 3.c. below 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, but this exclusion only applies if weather conditions contrib- ute in any way with a cause or event ex- cluded in B.1, above to produce the loss or damage. b. Acts or decisions, including the failure to act or decide, of any person, group, or- ganization or governmental body. c. Faulty, inadequate or defective: (1) Planning, zoning, development, sur- veying, siting; (2) Design, specifications, workmanship, repair, construction, renovation, re- modeling, grading, compaction; (3) Materials used in repair, construction, renovation or remodeling; or (4) Maintenance; of part or aft of any property on or off the described premises. 4. Business Income and Extra Expense Ex- clusions We will not pay for: a. Any Extra Expense, or increase of Busi- ness income loss, caused by or resulting from: (1) Delay in rebuilding, repairing or re- placing the property or resuming "op- erations", due to interference by strikers or other persons at the loca- tion of the rebuilding, repair or re- placement; or (2) 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" and the period of extended Business Income. b. Any other consequential loss C. LIMITS OF INSURANCE 1. Unless otherwise stated, the most we will pay for loss or damage in any one occurrence is the applicable Limit of Insurance shown in the Declarations, Schedules, Coverage Forms, or endorsements. 2. Inflation Guard a. When so indicated in the Declarations, the Limit of Insurance for property to which this coverage applies will automati- cally increase by the annual percentage shown. b. The amount of increase will be: (1) The Limit of Insurance that applied on the most recent of the policy incep- tion date, the policy anniversary date, or any other policy change amending the Limit of Insurance, multiplied by (2) The percentage of annual increase shown in the Declarations, expressed as a decimal (example: 8% is .08), multiplied by (3) The number of days since the begin- ning of the current policy year or the effective date of the most recent pol- icy change amending the Limit of In- surance, divided by 365. Page 18 of 28 MP T1 02 01 00 BUSINESSOWNERS Example: If: The applicable Building limit is $100,000 The annual percentage increase 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 3. Business Personal Property Limit - Sea- sonallncrease a. The Limit of Insurance for Business Per- sonal Property shown in the Declarations will automatically increase by 25% to pro- vide 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 preced- ing the date the loss or damage oc- curs; or (2) The period of time you have been in business at the location where the loss or damage occurs, on the date the loss or damage occurs. D. DEDUCTIBLES 1. We will not pay for loss or damage in any one occurrence until the amount of loss or dam- age exceeds the Deductible shown in the Declarations. We will then pay the amount of covered loss or damage in excess of the De- ductible up to the applicable Limit of Insur- ance. 2. Regardless of the amount of the Deductible, the most we will deduct from any loss or damage under the Exterior Building Glass Extension of Coverage in any one occurrence is the Exterior Building Glass Deductible shown in the Declarations. But this Exterior Building Glass Deductible will not increase the deductible shown in the Declarations. 3. No deductible applies to the following: a. Fire Department Service Charge; b. Business Income (including Extra Ex- pense and Civil Authority); c. Money Orders and Counterfeit Paper Currency; d. Arson and Theft Reward; or e. Valuable Papers. 4. If more than one deductible applies to the same loss, the most we will deduct from the loss payment is the highest deductible amount. E. PROPERTY LOSS CONDITIONS The following conditions apply in addition to the Common Policy Conditions: 1. Abandonment There can be no abandonment of any prop- erty to us. 2. Appraisal If we and you disagree on the value of the property, the amount of Net Income and op- erating expense or the amount of loss, either may make written demand for an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they can- not agree, either may request that selection be made by a judge of a court having jurisdic- tion. The appraisers will state separately the value of the property, the amount of Net In- come and operating expense or the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally. If there is an appraisal, we will still retain our right to deny the claim. 3. Duties in the Event of Loss or Damage a. You must see to it that the following are done upon the discovery of loss or dam- age, or a situation that may lead to loss or damage, to Covered Property: (1) Notify the police if a law may have been broken. This duty does not ap- ply to loss or damage arising from Employee Dishonesty and Forgery or Alteration. (2) Give us prompt notice of the loss or damage. Include a description of the property involved. MP T1 02 01 00 Page 19 of 28 BUSINESSOW NERS (3) As soon as possible, give us a de- b. We may examine any insured under oath, scription of how, when and where the while not in the presence of any other in- loss or damage occurred. sured and at such times as may be rea- (4) Take all reasonable steps to protect sonably required, about any matter relat- the Covered Property from further ing to this insurance or the claim, includ- ' ing an insured s books and records. In the ' event of an examination, an insured s an- expenses necessary to protect the swers must be signed. Covered Property, for consideration in the settlement of the claim. This q Loss Payment -Building and Personal will not increase the Limit of Insur- Property ance. However, we will not pay for a. In the event of loss or damage covered any loss or damage resulting from a by this Coverage Form, at our option, we cause of loss that is not a Covered will either: Cause of Loss. Also, if feasible, set (1) Pay the value of lost or damaged the damaged property aside and in property; the best possible order for examina- (2) Pay the cost of repairing or replacing tion. . the lost or damaged property, subject (5) At our request, give us complete in- to b. below; ventories of the damaged and un- damaged property. Include quantities, (3) Take all or any part of the property at costs, values and amount of loss an agreed or appraised value; or claimed. (4) Repair, rebuild or replace the prop- (6) As often as may be reasonably re- erty with other property of like kind quired, permit us to inspect the prop- and quality, subject to b. below. erty proving the loss or damage and We will determine the value of lost or examine your books and records. damaged property, or the cost of its repair Also permit us to take samples of or replacement, in accordance with the applicable terms of 4. e. below or any ap- damaged and undamaged property plicable provision which amends or su- for inspection, testing and analysis, persedes the value of Covered Property. and permit us to make copies from your books and records. b. The cost to repair, rebuild or replace does not include the increased cost attributable (7) For loss or damage from other than to enforcement of any ordinance or law Employee Dishonesty and Forgery or regulating the construction, use or repair Alteration send us a signed, sworn of any property. proof of loss containing the informa- c. We will give notice of our intentions within tion we request to investigate the 30 days after we receive the proof of loss. claim. You must do this within 60 days after our request. We will supply W d. We e will not pay you more than your finan- you with the necessary forms. cial interest in the Covered Property. (8) For loss or damage resulting from e. We will determine the value of Covered Employee Dishonesty and Forgery or Property as follows: Alteration, give us a detailed, sworn (1) At replacement cost (without deduc- proof of loss within 120 days of the tion for depreciation), except as pro- date of discovery. vided in (2) through (13) below. (9) Cooperate with us in the investigation (a) You may make a claim for loss or and settlement of the claim. damage covered by this insur- (10) If you intend to continue your busi- ance on an actual cash value ba- ness, you must resume all or part of " " sis instead of on a replacement cost basis. In the event you elect your operations as quickly as pos- to have loss or damage settled sible. on an actual cash value basis, you may still make a claim on a Page 20 of 28 MP T7 02 01 00 BUSINESSOWNERS replacement cost basis if you no- which would have been incurred tify us of your intent to do so if the building had been rebuilt at within 180 days after the loss or the original premises. damage. (d) The cost of repair or replacement (b) We will not pay on a replacement does not include the increased cost basis for any loss or dam- cost attributable to enforcement age: of any ordinance or law regulat- i. Until the lost or damaged ing the construction, use or repair property is actually repaired of any property. or replaced; and (2) If the Declarations indicate that Ac- ii. Unless the repairs or re- tual Cash Value applies to Buildings placement are made as soon or Business Personal Property, para- as reasonably possible after graph (1) above does not apply to the the loss or damage. property for which Actual Cash Value With respect to tenants' im- is indicated. provements and betterment's, the (3) Property of others at the amount you following also applies: are liable plus the cost of labor, mate- (i) If the conditions in (b) i. and rials or services furnished or ar- (b) ii. above are not met, the ranged by you on personal property value of tenants' improve- of others, not to exceed the replace- ments and betterments will ment cost. be determined as a propor- (4) The following property at actual cash tion of your original cost, as value: set forth under 4.e.(6) below; and (a) Used or second-hand merchan- dise held in storage or for sale; (ii) We will not pay for loss or damage to tenants' improve- (b) Household furnishings; ments and betterments if (c) Manuscripts; others pay for repairs or re- (d) Works of art, antiques or rare ar- placement. ticles including etchings, pictures, (c) We will not pay more for loss or statuary, marbles, bronzes, por- damage on a replacement cost celains and bric-a-brac; and basis than the least of i., ii, or iii. (e) Personal effects. subject to (d) below: L The Limit of Insurance appli- (5) Glass at the cost replacement with cable to the lost or damaged safety glazing material if required by property; law ii. The cost to replace the lost or (6) Tenants' Improvements and Better- damaged property with other ments at: property: (a) Replacement cost if you make (iii) Of comparable material repairs promptly. and quality; and (b) A proportion of your original cost (fv) Used for the same pur- if you do not make repairs pose; or promptly. We will determine the proportionate value as follows: ill. The amount actually spent that is necessary repair I. Multiply the original cost by replace the lost or r damaged d the number of days from the property. loss or damage to the expira- tion of the lease; and If a building is rebuilt at a new premises, the cost described in ii. Divide the amount deter- (c) ii, above is limited to the cost mined in i. above by the number of days from the in- MP T1 02 01 00 Page 21 of 28 BUSINESSOWNERS stallation of improvements to the expiration of the lease. If your lease contains a re- newal option, the expiration of the renewal option period will replace the expiration of the lease in this procedure. (c) Nothing, if others pay for repairs or replacement. (7) Valuable Papers and Records, in- cluding those which exist on elec- tronic or magnetic media (other than prepackaged software programs), at the cost of: (a) Blank materials for reproducing the records; and (b) Labor to transcribe or copy the records. (8) "Stock" you have sold but not deliv- ered at the selling price less dis- counts and expenses you otherwise would have had. (9) Property in transit (other than "stock" you have sold) at the amount of in- voice, including your prepaid or ad- vanced freight charges and other charges, which may have accrued or become, legally due since the ship- ment. If you have no invoice, actual cash value will apply. (10) "Money" at its face value; and (11) "Securities" at their value at the close of business on the day the loss is dis- covered, (12) The value of United States Govern- ment Internal Revenue taxes and custom duties and refundable state and local taxes paid or fully deter- mined on the following property held for sale will not be considered in de- termining the value of Covered Prop- erty: (a) Distilled spirits; (b) Wines; (c) Rectified products; or (d) Beer. (13) Lottery tickets at their initial cost to you except for winning tickets at their redeemed value. f. Our payment for loss of or damage to personal 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 pay- ments will satisfy your claims against us for the owners' property. We will not pay the owners more than their financial in- terest in the Covered Property. g. We may elect to defend you against suits arising from claims of owners of property. We will do so at our expense. h. 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. i. At our option, we may make a partial payment toward any claims, subject to the policy provisions and our normal ad- justment process. To be considered for partial claim payment, you must submit a partial sworn proof of loss with supporting documentation. Any applicable policy de- ductibles must be satisfied before any partial payments are made. 5. Loss Payment Business Income and Ex- tra Expense a. The amount of Business Income loss will be determined based on: (1) The Net Income of the business be- fore the direct physical loss or dam- age occurred; (2) The likely Net Income of the business if no physical loss or damage oc- curred, but not including any likely in- crease in Net Income attributable to an increase in the volume of business as a result of favorable business conditions caused by the impact of the Covered Cause of Loss on cus- tomers or on other businesses; (3) The operating expenses, including payroll expenses, necessary to re- sume "operations" with the same quality of service that existed just before the direct physical loss or damage; and Page 22 of 28 MP T1 02 01 00 BUSINESSOWNERS (4) Other relevant sources of information, including: (a) Your financial records and ac- counting procedures; (b) Bills, invoices and other vouch- ers; and (c) Deeds, (ions or contracts. b. The amount of Extra Expense will be de- termined based on: (1) All reasonable and necessary ex- penses that exceed the normal oper- ating expenses that would have been incurred by "operations" during the "period of restoration" if no direct physical loss or damage had oc- curred. We will deduct from the total of such expenses: (a) The salvage value that remains of any property bought for tempo- rary use during the "period of restoration", once "operations" are resumed; and (b) Any Extra Expense that is paid for by other insurance, except for insurance that is written subject to the same plan, terms, condi- tions and provisions as this in- surance; and (2) All reasonable and necessary ex- penes that reduce the Business In- come loss that otherwise would have been incurred. c. Upon resumption of your "operations", we will reduce the amount of your: (1) Business Income loss, other than Extra Expense, to the extent you can resume your "operations", in whole or in part, by using damaged or undam- aged property (including merchandise or stock) at the described premises or elsewhere. (2) Extra Expense loss to the extent you can return "operations" to normal and discontinue such Extra Expense. d. 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. e. We will pay for covered loss or damage within 30 days after we receive your sworn proof of loss provided you have complied with all of the terms of this pol- icy; and (1) We have reached agreement with you on the amount of loss; or (2) An appraisal award has been made. 6. Recovered Property If either you or we recover any property after loss settlement, that party must give the other prompt notice. a. For all loss other than by Employee Dis- honesty and Forgery or Alteration, you have the option to retain the recovered property. If you do retain the property you must then return to us the amount we paid to you for the property. (1) We will pay: (a) Recovery expenses; and (b) Costs to repair the covered prop- erty. (2) But, the most we will pay is the smallest of the following: (a) The total of (1)(a) and (b) above; (b) The value of the recovered prop- erty; or (c) The Limit of Insurance. b. In all other instances, recoveries, less the cost of obtaining them, made after set- tlement of loss covered by this insurance will be distributed as follows: (1) To you, until you are reimbursed for any loss that you sustain that ex- ceeds the Limit of Insurance and the Deductible Amount, if any; (2) Then to us, until we are reimbursed for the settlement made; (3) Then to you, until you are reimbursed for that part of the loss equal to the Deductible Amount; if any. c. Recoveries do not include any recovery: (1) From insurance, suretyship, reinsur- ance, security or indemnity taken for our benefit; or (2) Of original "securities" after dupli- cates of them have been issued. MP T1 02 01 00 Page 23 of 28 BUSINESSOWNERS 7. Noncumulative Limit No Limit of Insurance cumulates from policy period to policy period. F. COMMERCIAL PROPERTY CONDITIONS 1. Concealment, Misrepresentation or Fraud This Coverage Form is void in any case of fraud by you. It is also void if you or any other insured, at any time, intentionally conceal or misrepresent a material fact concerning: a. This Coverage Form; b. The Covered Property; c. Your interest in the Covered Property; or d. A claim under this Coverage Form. 2. 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 affect coverage at any location where, at the time of loss or damage, the breach of condi- tion does not exist. 3. Insurance Under Two or More Coverages. If two or more coverages under this Coverage Form apply to the same loss or damage, we will not pay more than the actual amount of the loss or damage. 4. Legal Action Against Us No one may bring a legal action against us under this Coverage Form unless: a. There has been full compliance with all of the terms of this Coverage Form; and b. The action is brought within 2 years after the date on which the direct physical loss or damage occurred. c. For Employee Dishonesty and Forgery or Alteration losses, the following additional conditions apply: You may not bring any legal action against us involving loss until 90 days after you have filed proof of loss with us; and unless brought within 2 years from the date you discover the loss. 5. Liberalization If we adopt any revision that would broaden the coverage under this Coverage Form with- out additional premium within 45 days prior to or during the policy period, the broadened coverage will immediately apply to this Cov- erage Form. 6. No Benefit to Bailee No person or organization, other than you, having custody of Covered Property will benefit from this insurance. 7. Other Insurance a. You may have other insurance subject to the same plan, terms, conditions and pro- visions as the insurance under this Cov- erage Form. If you do, we will pay our share of the covered loss or damage. Our share is the proportion that the applicable Limit of Insurance under this Coverage Form bears to the Limits of Insurance of all insurance covering on the same basis. b. If there is other insurance covering the same loss or damage, other than that de- scribed in 7.a. above, 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. 8. Policy Period, Coverage Territory Under this Coverage Form: a. We cover loss or damage you sustain through acts committed or events occur- ring: (1) During the policy period shown in the Declarations (except as provided by the provisions of the Employee Dis- honesty and Forgery or Alteration Additional Coverages); (2) Within the coverage territory. b. The coverage territory is: (1) The United States of America (in- cluding its territories and posses- sions); (2) Puerto Rico; and (3) Canada. 9. Transfer of Rights of Recovery Against Others to Us. If any person or organization to or for whom we make payment under this Coverage Form has rights to recover damages from another, those rights are transferred to us to the extent Page 24 of 28 MP T1 02 01 00 BUSINESSOWNERS 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 writing: a. Prior to a loss to your Covered Property or Covered Income. b. After a loss to your Covered Property or Covered Income only if, at time of loss, that party is one of the following: (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. This will not restrict your insurance. 10. Coinsurance Example No. 1 (Under insurance): When: The value of the property is $250,000 The Coinsurance percent for it is 90% The Limit of Insurance for it is $112,500 The Deductible is $250 The amount of loss is $40,000 Step (1): $250,000 x 90% _ $225,000 (the minimum amount of insurance to meet your Coinsurance requirements) Step (2): $112,500/$225;000 =.50 Step (3): $40,000 x .50 = $20,000 Step (4): $20,000 - $250 = $19,750 We will pay no more than $19,750. The remaining $20,250 is not covered. If a Coinsurance percentage is shown in the Declarations, the following condition applies. a. We will not pay the full amount of any loss if the value of Covered Property at the time of loss multiplied by the Coinsur- ance percentage shown for it in the Dec- larations is greater than the Limit of In- surance for the property. Instead, we will determine the most we will pay using the following steps: (1) Multiply the value of Covered Prop- erty at the time of loss by the Coin- surance percentage; (2) Divide the Limit of Insurance of the property by the figure determined in step (1); (3) Multiply the total amount of the cov- ered loss, before the application of any deductible, by the figure deter- mined in step (2); and (4) Subtract the deductible from the fig- ure determined in step (3). We will pay the amount determined in step (4) or the limit of insurance, which- ever is less. For the remainder, you will either have to rely on other insurance or absorb the loss yourself. Example No. 2 (Adequate Insurance): When: The value of the property is $250,000 The Coinsurance percentage for it is 90% The Limit of Insurance for it is $225,000 The Deductible is $250 The amount of loss is $40,000 The minimum amount of insurance to meet your Coinsurance requirement is $225,000 ($250,000 x 90%). Therefore, the Limit of Insurance in this Example is adequate and no penalty ap- plies. We will pay no more than $39,750 ($40,000 amount of loss minus the de- ductible of $250). b. Coinsurance does not apply to: (1) "Money" and "securities"; (2) Additional Coverages; (3) Coverage Extensions; or (4) Loss or damage in any one occur- rence totaling less than $2,500. 11. Mortgageholders a. The term, mortgageholder, includes trus- tee. b. We will pay for covered loss of or damage to buildings or structures to each mort- MP T1 02 01 00 Page 25 of 28 BUSINESSOW NERS gageholder shown in the Declarations in their order of precedence, as interests may appear. c. The mortgageholder has the right to re- ceive loss payment even if the mortgage- holder 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 com- ply with the terms of this Coverage Form, the mortgageholder will still have the right to receive loss payment if the mortgage- holder: (1) Pays any premium due under this Coverage Form 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 ownership or occupancy or substan- tial change in risk known to the mort- gageholder. All of the terms of this Coverage Form will then apply directly to the mortgageholder. e. If we pay the mortgageholder for any loss or damage and deny payment to you be- cause of your acts or because you have failed to comply with the terms of this Coverage Form: (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 rights to re- cover the full amount of the mort- gageholder's claim will not be im- paired. At our option, we may pay to the mortgageholder 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 writ- ten 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. G. PROPERTY DEFINITIONS 1. "Banking Premises" means the interior of that portion of any building which is occupied by a banking institution or similar safe de- pository. 2. a. "Employee(s)" means: (1) Any natural person: (a) While in your service (and for 30 days after termination of service); and (b) Whom you compensate directly by salary, wages or commissions; and (c) Whom you have the right to direct and control while performing services for you. (2) Any natural person employed by an employment contractor while that person is subject to your direction and control and performing services for you excluding, however, any such person while having care and custody of property outside the premises. (3) Your directors or trustees while acting as a member of any of your elected or appointed committees to perform on your behalf specific, as distin- guished from general, directorial acts. b. But "Employee" does not mean any agent, broker, factor, commission mer- chant, consignee, independent contractor or representative of the same general character. 3. "Employee Dishonesty" means only dis- honest acts, committed by an "employee whether identified or not, acting alone or in collusion with other persons, except you or a partner, with the manifest intent to: a. Cause you to sustain loss; and also b. Obtain financial benefit (other than sala- ries, commissions, fees, bonuses, pro- motions, awards, profit sharing, pensions Page 26 of 28 MP T1 02 01 00 BUSINESSOWNERS or other employee benefits earned in the due to the enforcement of any law normal course of employment) for: that: (1) The "employee"; or (a) Regulates the construction, use (2) Any person or organization intended or repair, or requires the tearing down of any property; or by the "employee" to receive that benefit. (b) Regulates the prevention, control, clean-up restoration of repair, "Forgery" means the signing of the name of environmental damage, another person or organization with intent to The expiration date of this policy will not deceive; it does not mean a signature which ' cut short the "period of restoration". s own consists in whole or in part of one name signed with or without authority, in any 11. "Pollutants" means any solid, liquid, gase- capacity for any purpose. ous or thermal irritant or contaminant, includ- 5 "Interior of any building or structure" as ing smoke, vapor, soot, fumes, acids, alkalis, . used in this policy means all portions of the chemicals, waste, and any unhealthful or structure that are within the exterior skin of hazardous building materials (including but including but the structure's walls and roof not limited to asbestos and lead products or , sand paper, framing, not limited to lathe materials containing lead.). Waste includes , materials to be recycled, reconditioned or re- wallboard and tarpaper. claimed. 6. "Maintenance Fees" means the regular 12. "Rental Value" means the: payment made to you by unit-owners and used to service the common property. a. Total anticipated rental income from ten- 7 "Messenger" means you, and any of your ant occupancy of the premises described . partners or any "employees" while having in the Declarations as furnished and equipped by you; and care and custody of the property outside the premises. b. Amount of all charges which are the legal 8. "Money" means currency and coins in cur- obligation of the tenant(s) and which rent use, bank notes, travelers checks, reg- would otherwise be your obligations; and ister checks and money orders held for sale c. Fair rental value of any portion of the de- to the public. scribed premises which is occupied by 9. "Operations" means your business activities you, occurring at the described premises; and if 13. "Securities" means all negotiable and non- Business Income coverage for "Rental Value" negotiable instruments or contracts repre- applies, the tenantability of the described senting either "money" or other property and premises. includes revenue or other stamps in current 10 "Period of Restoration" means the period of use, tokens, tickets and credit card slips for . sales made by you and held by you for reim- time that: bursement from companies issuing credit a. Begins with the date of direct physical cards, but does not include "money". Lottery loss or damage caused by or resulting tickets held for sale are not securities. from any Covered Cause of Loss at the 14 "Specified Causes of Loss" means the fol- described premises; and lowing: b. Ends on the earlier of: Fire; lightning; explosion; windstorm or hail; (1) The date when the property at the smoke; aircraft or vehicles; riot or civil com- described premises should be re- motion; vandalism; leakage from fire extin- paired, rebuilt or replaced with rea- guishing equipment; sinkhole collapse; vol- sonable speed and similar quality; or canic action; falling objects; weight of snow, (2) The date when business is resumed ice or sleet; water damage. at a new permanent location. a. Sinkhole collapse means the sudden "Period of restoration" does not in- sinking or collapse of land into under- clude any increased period required ground empty spaces created by the ac- MP T1 02 01 00 Page 27 of 28 BUSINESSOW NERS tion of water on limestone or dolomite. It does not include: (1) The cost of filling sinkholes; or (2) Sinking or collapse of land into un- derground man-made 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 struc- ture", or property inside a building or structure, unless the roof or an out- side wall of the building or structure is first damaged by a falling object. c. Water damage means accidental dis- charge or leakage of water or steam as the direct result of the breaking apart or cracking of any part of a system or appli- ance (other than a sump system including its related equipment and parts) contain- ing water or steam. 15. "Stock" means merchandise held in storage or for sale, raw materials and in-process or finished goods, including supplies used in their packing or shipping. 16. "Suspension" means: a. The partial or complete cessation of your business activities; and b. That a part or all of the described prem- ises is rendered untenantable, if coverage for "Rental Value" applies. 17. "Theft" means any act of stealing but ex- cluding dishonest acts by "employees" and "Forgery" or Alteration. 18. "Vacant" means the following: (1) When this policy is issued to a tenant, and with respect to that tenant's interest in Covered Property, building means the unit or suite rented or leased to the ten- ant. Such building is vacant when it does not contain enough business personal property to conduct customary operation. (2) 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: (a) Rented to a lessee or sub-lessee and used by the lessee or sub-lessee to conduct its customary operations; and/or (b) Used by the building owner to con- duct customary operations. Page 28 of 28 MP T1 02 01 00 BUSINESSOWNERS POLICY NUMBER: I-680-3793A531-TIL-02 ISSUE DATE: 09-24-02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDATORY PROVISIONS WHOLESALERS PAC PROGRAM INCLUDING BUSINESS INCOME ORDINARY PAYROLL LIMITATION This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE PART CRIME COVERAGES SCHEDULE EMPLOYEE DISHONESTY FORGERY OR ALTERATION THEFT OF MONEY AND SECURITIES 1. The insurance provided under Additional Cover- age A.6.d. Employee Dishonesty in the BUSI- NESSOWNERS PROPERTY COVERAGE SPE- CIAL FORM is changed by replacing item d.(2) with the following: d. (2) The most we will pay for loss or damage in any one occurrence is the Limit of In- surance shown in the Schedule above for Employee Dishonesty. 2. The insurance provided under Additional Cover- age A.6.h. Forgery or Alteration in the BUSI- NESSOWNERS PROPERTY COVERAGE SPE- CIAL FORM is changed by replacing h.(2) with the following: h. (2) The most we will pay for loss or damage in any occurrence is the Limit of Insur- ance shown in the Schedule above for Forgery or Alteration. 3. Under A.5. Limitations of the BUSINESSOWN- ERS PROPERTY COVERAGE SPECIAL FORM, provision d. is deleted and replaced by the fol- lowing: d. For loss or damage by "theft", the most we will pay in any one occurrence for the follow- ing types of property is: (1) The Limit of Insurance shown in the Schedule above for theft of "money" and "securities" except by "employee dishon- esty" and "forgery" or alteration. (2) $2,500 for all furs, fur garments and gar- ments trimmed with fur. (3) $5,000 for all jewelry, watches, watch movements, jewels, pearls, precious and semi-precious stones, and gold, silver, LIMIT OF INSURANCE $ 25,000 LIMIT OF INSURANCE $ 25,000 LIMIT OF INSURANCE $ 25,000 platinum and other precious alloys or metals. (4) $2,500 for all patterns, dies, molds and forms. 4. Under A.7. Coverage Extensions of the BUSI- NESSOWNERS PROPERTY COVERAGE SPE- CIAL FORM, provision c. is deleted and replaced with the following: c. Business Personal Property Off Premises Your Business Personal Property Insurance is extended to apply to property owned by you and used in your business as follows: (1) "Money" and "Securities" while in transit, at a "banking premises", or temporarily at your home. (2) "Stock" while at a premises you do not own, lease or operate other than at an exhibition, installation, or customer's lo- cation. (3) Business Personal Property other than "stock" while temporarily away from the described premises, while in transit or at a premises you do not own, lease or op- erate. This extension does not apply to property away from the premises for more than 60 consecutive days, sales representative's samples, property at exhibitions or property rented or leased to others. 5. Under A.6. Additional Coverages of the BUSI- NESSOWNERS PROPERTY COVERAGE SPE- CIAL FORM, provision n. is added as follows: MP T7 81 01 00 Page 1 of 2 BUSINESSOWNERS n. Brands and Labels If branded or labeled merchandise that is covered property is damaged by a Covered Cause of Loss, we may take all of or any part of the property at an agreed or appraised value. If so, you may: (1) Stamp the word "Salvage" on the mer- chandise or its containers, if the stamp will not physically damage the merchan- dise; or (2) Remove the brands or labels, if doing so will not physically damage the merchan- dise. You must relabel the merchandise or its containers to comply with the law. We will pay reasonable costs you incur to perform the activity described in n.(1) or n.(2) above. The most we will pay for these costs and the value of the damaged property under this Additional Coverage is $25,000. 6. Under A.7. Coverage Extensions of the BUSI- NESSOWNERS PROPERTY COVERAGE SPE- CIAL FORM, provisions o. and p. are added as follows: o. Sales Representative's Samples (1) You may extend the insurance that ap- plies to your Business Personal Property to apply to: (a) Samples of your stock in trade (in- cluding containers); and (b) Similar property of others; while such property is in the custody of your sales representatives, or agents, or yourself while acting as a sales repre- sentative, or while in transit between your premises and your sales representative. (2) The most we will pay for loss or damage under this coverage extension is $25,000 for property in the custody of any one sales representative. p. Exhibitions (1) You may extend the insurance that ap- plies to your Business Personal Property, including property of others that is in your care, custody or control, to apply to that property while temporarily on display to the public at a premises you do not regu- larly occupy. (2) The most we will pay for loss or damage under this extension is $25,000 at any one exhibition. 7. The insurance provided under Business Income, paragraph A.3.a. in the BUSINESSOWNERS PROPERTY COVERAGE SPECIAL FORM is changed as follows: A.3.a. is replaced by the following: a. Business income means that the: (1) Net Income (Net Profit or Loss before in- come taxes) that would have been earned or incurred; and (2) Continuing normal operating expenses incurred, including "ordinary payroll" but limited to 90 days following the date of di- rect physical loss or damage. The num- ber of days may be used in two separate periods during "period of restoration". (a) "Ordinary payroll expenses" means payroll expenses for all your employ- ees except: (1) Officers; (2) Executives; (3) Department Managers; and (4) Employees under contract. (b) "Ordinary payroll expenses" includes: (1) Payroll; (2) Employee Benefits, if directly re- lated to payrolls; (3) FICA payments; (4) Union dues; and (5) Workers' Compensation premi- ums. 8. Under A.3., Business Income, the following is added: d. When a Limit of Insurance is shown in the Declarations, that Limit is the most we will pay in any one occurrence for loss of Busi- ness Income. Page 2 of 2 MP T1 81 01 00 BUSINESSOWNERS THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. POWER PAC PLUS ENDORSEMENT This endorsement modifies insurance provided under the following BUSINESSOWNERS COVERAGE PART A. The Businessowners Property Coverage - (2) replace or repair faulty valves or Special Form is revised as follows: controls which caused the dis- 1. The limit applicable to the Additional Cov- charge. erage - Pollutant Cleanup and Removal is The most we will pay under this Addi- increased from $10,000 to $25,000. tional Coverage is $5,000 in any one 2. The limit applicable to the Additional Cov- occurrence. erage - Fire Department Service Charge This amount is in addition to the Limits is increased from $1,000 to $10,000. of Insurance. 3. The "theft" limitation for all patterns, dies, c. Lost Key Consequential Loss molds and forms under Limitations A.5.d. (1) We will pay for consequential loss to is changed to provide an additional $50,000. keys and locks if a master or grand 4. The following Additional Coverages are master key is lost or damaged from added: a Covered Cause of Loss. We will a. Brands and Labels pay for: If branded or labeled merchandise that (a) the actual cost of keys, and is covered property is damaged by a (b) adjustment of locks to accept Covered Cause of Loss, we may take all new keys, or of or any part of the property at an (c) if required, new locks including agreed or appraised value. If so, you cost of their installation. may: (2) Loss damage must be caused by (1) Stamp the word "Salvage" on the or result from a Covered Cause of merchandise or its containers, if the Loss including mysterious disap- not physically damage stamp will pearance . merchandise; or the (3) The most we will pay for loss or (2) Remove the brands or labels, if do- damage under this Additional Cov- ing so will not physically damage the r is$500 at each described merchandise. You must relabel the premises. merchandise or its containers to comply with the law. This amount is in addition to the Limits of Insurance. We will pay reasonable costs you incur to perform the activity described in a.(1) d. Ordinance or Law- Increased Cost of and a.(2) above. The most we will pay Construction or Repair for these costs and the value of the If a Covered Cause of Loss occurs to damaged property under this Additional covered Building Property insured under Coverage is $25,000. this policy at a described premises, we b. Fire Protective Equipment Discharge will pay the increased cost to repair, re- build or construct the damaged building If fire protective equipment discharges caused enforcement of a building, accidentally or to control a Covered zoning or r land use ordinance or law Cause of Loss we will pay your cost to: which is in force at the time of loss. The (1) refill or recharge the system with the repaired or rebuilt building must be in- extinguishing agents that were dis- tended for similar occupancy as the sur- charged; and rent property, unless otherwise required by zoning or land use ordinance or law. MP T9 77 01 00 Page 1 of 6 BUSINESSOWNERS We will not pay under this Additional Coverage for the costs associated with the enforcement of any ordinance or law which requires any insured or others to test for, monitor, clean up, remove, contain, treat, defoxify or neutralize, or in any way respond to, or assess the effects of "pollutants" and asbestos whether or not such asbestos is deemed to be a "pollutant". We will not pay for increased construc- tion costs until the building is actually repaired or replaced, at the same or an- other premises. We will not pay under this coverage for loss due to any ordinance or law which: (1) You were required to comply with before the loss, even if the building was undamaged; and (2) You failed to comply with. The most we will pay for loss under this Additional Coverage is $25,000 in any one occurrence. This amount is in addition to the Limits of Insurance. e. Utility Services - Direct Damage We will pay for loss or damage to Cov- ered Property caused by the interruption of services to the described premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to the following property not on the described premises: (1) Water Supply Services, meaning the following types of property supplying water to the described premises: (a) Pumping stations; and (b) Water mains. (2) Communication Supply Services, meaning property supplying com- munications services, including telephone, radio, microwave, or television services to the described premises, such as (a) Communication transmission lines except overhead transmis- sion lines including fiber optic transmission lines; (b) Coaxial cables; and (c) Microwave radio relays, except satellites. (3) Power Supply Services, meaning the following types of property sup- plying electricity, steam or gas to the described premises: (a) Utility generating plants; (b) Switching stations; (c) Transformers; and (d) Transmission lines, except overhead transmission lines. The most we will pay for loss or damage under this Additional Coverage is $2,500. 5. The following Coverage Extensions are re- vised as follows: a. Business Income and Extra Expense - Newly Acquired Locations The limit of $250,000 is increased to $500,000 when Business Income is in- cluded. b. Claim Data Expense The limit of $1,000 is increased to $5,000. c. Newly Acquired or Constructed Property (1) The limit for your new buildings or additions while being built on the described premises or newly ac- quired premises is increased from $250,000 to $500,000. (2) The limit for newly acquired Busi- ness Personal Property is increased from $250,000 to $500,000. d. Outdoor Property The limit of $5,000 at each described premises is increased to $10,000. e. Valuable Papers and Records - Cost of Research is deleted and is replaced with the following: Valuable Papers and Records (Other Than Accounts Receivable) - Cost of Research You may extend the insurance that ap- plies to Business Personal Property to apply to your costs to research, replace or restore the lost information on lost or damaged valuable papers and records, (other than accounts receivables), in- cluding those which exist on electronic or magnetic media, for which duplicates do not exist. Page 2 of 6 MP T9 77 01 00 BUSINESSOWNERS The most we will pay under this Cover- (b) any inventory computation; or age Extension is $25,000 at each de- c () a profit or loss computation; scribed premises or within 1,000 feet thereof and $5,000 while in transit or to prove its factual existence. temporarily at your home or at a prem- The most we will pay under this Cover- Ise you do not own, lease or operate. age Extension is $25,000 at each de- This amount is in addition to the Limits scribed premises or within 1,000 feet of Insurance. thereof and $10,000 in transit or tempo- rarily at your home or at a premises you 6. The following Coverage Extensions are do not own, lease or operate. added: This amount is in addition to the Limits a. Accounts Receivable oflnsurance. You may extend the insurance that ap- b. Business Computer plies to Business Personal Property to apply to loss or damage by a Covered (1) You may extend the insurance that Cause of Loss to your accounts receiv- applies under A.1.b., Business able records including those on elec- Personal Property, to loss or dam- tronic data processing media. age by a Covered Cause of Loss to (1) We will pay: the following types of property used in your data processing operations (a) Amounts due from your cus- at a location described in the Decla- tomers that you are unable to rations: collect because of loss or dam- (a) Equipment. Your electronic data age to your accounts receivable processing equipment, facsimile records; machines, word processors, (b) Interest charges on any loan re- multi-functional telephone sys- quired to offset amounts you are tems, laptop and portable com- unable to collect because of puters; related surge protection loss or damage to your ac- devices; and their component counts receivable records, parts and peripherals. pending our payment of these (b) Data and Media. Your data amounts; stored on disks, films, tapes or (c) Collection expenses in excess similar electronic data process- of your normal collection ex- ing media; the media itself; penses that are made neces- computer programs and instruc- sary by the loss; and tions; and similar property of (d) Other reasonable expenses that others in your care, custody or you incur to re-establish your control. records of accounts receivable. (c) Duplicate Data and Media. We (2) We will not pay for loss or damage will pay for loss to duplicates of under this Coverage Extension covered Data and Media while caused by or resulting from any of stored in a separate building at the following: least 1,000 feet from a location described in the Declarations. (a) Bookkeeping, accounting or billing errors or omissions; or (2) We will pay for accidental loss or (b) Electrical or magnetic injury, damage to the equipment covered by this form while at a location disturbance or erasure of elec- shown in the Declarations if the ac- tronic recording except as a re- cidental loss or damage is caused sult of a direct loss caused by by a Covered Cause of Loss, in- lightning. cluding any of the following: (3) We will not pay for loss or damage (a) Mechanical breakdown of cov- that requires: ered equipment while at a loca- (a) an audit of records; tion described in the Declara- MP T9 77 01 00 Page 3 of 6 BUSINESSOWNERS tions. But we will not pay for loss to such equipment if caused by or resulting from any change in electrical power or other utility service, such as fail- ure, fluctuation or interruption, if that change originates more that 1,000 feet from the building containing the equipment. (b) Corrosion, rust, dampness, dry- ness, cold, heat or humidity re- sulting directly from damage to the air conditioning or heating system that services your data processing equipment. The damage to such systems must be caused by a Covered Cause of Loss. The most we will pay under this Cover- age Extension is $25,000. This amount is in addition to the Limits of Insurance. c. Exhibitions You may extend the insurance that ap- plies to Business Personal Property to apply to loss or damage by a Covered Cause of Loss to Business Personal Property temporarily at exhibitions or displays on a premises you do not own, lease or operate. The most we will pay under this Cover- age Extension is $25,000 at each exhi- bition and $10,000 in transit. This amount is in addition to the Limits oflnsurance. d. Fine Arts You may extend the insurance that ap- plies to Business Personal Property to apply to loss or damage by a Covered Cause of Loss to "Fine Arts" at the premises described in the Declarations. The most we will pay under this Exten- sion is $10,000 at each described premises. The Breakage Limitation contained in Section A.5.c.(2) of the Businessowners Property Coverage Special Form does not apply to this Fine Arts Extension. "Fine Arts" means paintings, etchings, pictures, tapestries, art glass windows, valuable rugs, statuary, marbles, bronzes, antique furniture, rare books, antique silver, manuscripts, porcelains, rare glass, bric-a-brac and similar prop- erty of rarity, historical value, or artistic merit. The following is added to PROPERTY LOSS CONDITIONS - E.4.e.(4)(d) with respect to "Fine Arts": We will determine the value of Fine Arts as follows: Works of art, antiques or rare articles at the lesser of: (1) Market value at the time and place of loss; (2) Cost of reasonably restoring that property; or (3) Replacing that property with sub- stantially the same property. This amount is in addition to the Limits of Insurance. e. Sales Representative's Samples You may extend the insurance that ap- plies to your Business Personal Prop- erty to apply to: (1) Samples of your stock in trade (in- cluding containers); and (2) Similar property of others; While such property is in the custody of your sales representatives, or agents, or yourself while acting as a sales repre- sentative, or while in transit between your premises and your sales repre- sentative. The most we will pay for loss or damage under this coverage extension is $25,000 for property in the custody of any one sales representative. 7. The following Additional Coverages are added when Business Income is included: a. Business Income From Dependent Properties (1) We will pay for the actual loss of Business Income you sustain and necessary Extra Expense due to the necessary "suspension" of your "operations" during the "period of restoration". The suspension must be caused by direct physical loss or damage caused by or resulting from a Covered Cause of Loss at the premises of "dependent property" located in the coverage territory. Page 4 of 6 MP T9 77 01 00 BUSINESSOWNERS "Dependent Property" means prop- b. Ordinance or Law - Increased "Pe- erty operated by others you depend riod of Restoration" on to: (1) If a Covered Cause of Loss occurs (a) Deliver materials or services to property at the premises de- (other than water, communica- scribed in the Declarations, Busi- tions or power supply) to you, or ness Income coverage is extended to others for your account (Con- to include the amount of actual and tributing Locations); necessary loss you sustain during (b) Accept your products or serv- the increased period of suspension ices (Recipient Locations); of "operations" caused by or result- (c) Manufacture products for deliv- ing from the enforcement of an ordi- nance or law that: ery to your customers under contract of sale (Manufacturing (a) Regulates the construction or Locations); or repair of any property; and (d) Attract customers to your busi- (b) Is in force at the time of loss. ness (Leader Locations). However, coverage is not extended (2) The Period of Restoration definition, to include loss caused by or result- with respect to "dependent prop- ing from the enforcement of any or- erty", is replaced by the following: dinance or law which requires any "Period of Restoration" means the insured or others to test for, monitor, cl i period of time that: ean up, remove, conta n, treat, detoxify or neutralize, or in any way (a) Begins 24 hours after the time respond to, or assess the effects of of direct physical loss or dam- "pollutants", and asbestos whether age caused by or resulting from or not such asbestos is deemed to any Covered Cause of Loss at be a "pollutant". the premises of the "dependent " (2) We will not pay under this coverage property ; and for loss due to any ordinance or law (b) Ends on the date when the which: property at the premises of the " (a) You were required to comply dependent property" should be with before the loss, even if the repaired, rebuilt or replaced with building was undamaged; and reasonable speed and similar quality. (b) You failed to comply with. (3) "Period of restoration" does not in- The most we will pay for loss under clude any enforcement of any in- this additional coverage is $25,000 creased period required due to the in any one occurrence. enforcement of any ordinance or law c. Utility Services - Time Element that: We will pay for loss of Business Income (a) Regulates the construction, use and/or Extra Expense you sustain due to or repair, or requires the tearing the necessary "suspension" of your "op- down of any property; or erations" during the "period of restora- (b) Requires any insured or others tion" as a result of direct physical loss or to test for, monitor, clean up, damage by a Covered Cause of Loss to remove, contain, treat, detoxify property not at the premises described or neutralize, or in any way re- in the Declarations but used to supply spond to, or assess the effects you with services by the following utilities: of "pollutants". (1) Water Supply Services, meaning the The most we will pay under this ad- following types of property supplying ditional coverage is $25,000. water to the described premises: (a) Pumping stations; and (b) Water mains. MP T9 77 01 00 Page 5 of 6 BUSINESSOWNERS (2) Communication Supply Services, plying electricity, steam or gas to the meaning property supplying com- described premises: munications services, including (a) Utility generating plants; telephone, radio, microwave, or television services to the described (b) Switching stations; premises, such as: (c) Substations; (a) Communication transmission (d) Transformers; and lines except overhead transmis- (e) Transmission lines except sion lines including fiber optic , overhead transmission lines Ian smission lines; transmission . (b) Coaxial cables; and The most we will pay is $2,500 for loss you sustain after the first 24 hours fol- (c) Microwave radio relays, except lowing the direct physical loss or dam- satellites. age by a Covered Cause of Loss that (3) Power Supply Services, meaning disrupted the services provided by the the following types of property sup- utility companies described above. Page 6 of 6 MP T9 77 01 00 BUSINESSOWNERS THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PENNSYLVANIA CHANGES This endorsement modifies insurance provided under the following: BUSINESSOWNERS PROPERTY COVERAGE SPECIAL FORM Additional Coverage Employee Dishonesty is changed by deletion of provision A.6.d.(5)(a) which reads as follows: (5) We will not pay for loss resulting from the dishonest acts of any "employee": (a) If coverage for that employee was either cancelled or excluded from any previous insurance policy of yours providing employee dishonesty coverage. MP T4 66 01 00 Page 1 of 1 GENERAL LIABILITY TravelersPropertyCasualty I& weemee.t 7Yave7ersGmup J GENERAL LIABILITY DECLARATIONS PREMIUM SCHEDULE Issue Date: 09-24-02 Policy Number: I-680-3793A531-TIL-02 This Schedule applies to the Declarations for the period of 09-14-02 to 09-14-03 . It shows all of your known rating classes as of the effective date. Any exceptions will be so noted. This includes all locations you own, rent or occupy. LOC/ CLASS PREMIUM OPN BLDG DESCRIPT/ BASE/ ADVANCE NO. NO. CODE NO. SUBLINE EXPOSURE RATES PREMIUM 01 01 NON-DURABLE GOODS A - MEDIUM HAZARD s 1,000,000 .319 $ 319 01 01 DURABLE GOODS A - MEDIUM HAZARD s 4,000,000 .702 2,808 This class is subject to the transition program. If an "X" is entered in this box, these Declarations are completed on the Premium Schedule Extension CG TO 12. Premium Base Legend: Premium Base a= area c = cost e = employees m = admissions p = payroll How Rates Apply per 1000 sq. feet per $1000 of total cost per employee per 1000 of admissions per $1000 of payroll Premium Base How Rates Apply s= gross sales per $1000 of gross sales u = units per unit t = This premium base is reserved for unusual applications. Base and how rates apply are shown above. CG TO 07 03 96 Page 1 of 1 TABLE OF CONTENTS COMMERCIAL GENERAL LIABILITY COVERAGE FORM (CG 00 01 10 93) SECTION I--COVERAGES Beginning on Page Coverage A-- Bodily Injury and Property Damage Liability Coverage B-- Personal and Advertising Injury Liability Coverage C-- Medical Payments Supplementary Payments SECTION II--WHO IS AN INSURED...... SECTION III--LIMITS OF INSURANCE Insuring Agreement .....................................................1 Exclusions Insuring Agreement .....................................................4 Exclusions Insuring Agreement Exclusions .................... SECTION IV--COMMERCIAL GENERAL LIABILITY CONDITIONS Bankruptcy ...................................................................................................................................... ....................................... I Duties in the Event of Occurrence, Claim or Suit .................................................. .......................................7 Legal Action Against Us ...................... _.................................................................................. ....................................... 7 Other Insurance ........................................................................................................................... .......................................8 Premium Audit... ........................................................................................................................... ........................................ 8 Representations ........................................................................................................................... .......................................8 Separation of Insureds ......................................................................................................... .......................................8 Transfer of Rights of Recovery Against Others To Us ...................................... ........................................9 When We Do Not Renew - 9 SECTION V--DEFINITIONS CG TO 3410 93 COMMERCIAL GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations, and any other person or organization qualifying as a Named Insured under this policy. The words "we," "usand "our" refer to the company providing this insurance. The word "insured" means any person or organization qualifying as such under WHO IS AN INSURED (SECTION I1). Other words and phrases that appear in quotation marks have special meaning. Refer to DEFINITIONS (SEC- TION V). SECTION I - COVERAGES COVERAGE A. BODILY INJURY AND PROPERTY DAMAGE LIABILITY 1. Insuring Agreement. a. We will pay those sums that the insured be- comes legally obligated to pay as damages because of "bodily injury" or "property dam- age" to which this insurance applies. We will have the right and duty to defend any "suit" seeking those damages. We may at our dis- cretion investigate any "occurrence" and set- tle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in LIMITS OF IN- SURANCE (SECTION III); and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverages A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under SUPPLEMEW TARY PAYMENTS - COVERAGES A AND B. b. This insurance applies to "bodily injury" and "property damage" only if: (1) The "bodily injury" or "property damage" is caused by an "occurrence" that takes place in the "coverage territory"; and (2) The "bodily injury" or "property damage" occurs during the policy period. c. Damages because of "'bodily injury" include damages claimed by any person or organi- zation for care, loss of services or death re- sulting at any time from the "bodily injury." CG 00 01 10 93 Copyright, Insurance 2. Exclusions. This insurance does not apply to: a. Expected or Intended Injury "Bodily injury" or "property damage" expected or intended from the standpoint of the in- sured. This exclusion does not apply to "bod- ily injury" resulting from the use of reason- able force to protect persons or property. b. Contractual Liability "Bodily injury" or "property damage" for which the insured is obligated to pay damages by reason of the assumption of liability in a con- tract or agreement. This exclusion does not apply to liability for damages: (1) 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; or (2) That the insured would have in the ab- sence of the contract or agreement. 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 intoxication 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 re- lating 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. Services Office, Inc., 1992 Page 1 of 11 COMMERCIAL GENERAL LIABILITY d. Workers Compensation and Similar Laws (1) if the pollutants are brought on or Any obligation of the insured under a workers to the premises, site or location compensation, disability benefits or unem- in connection with such opera- ployment compensation law or any similar tions by such insured, contractor law. or subcontractor; or e. Employer's Liability (if) if the operations are to test for, "Bodily injury" to: monitor, clean up, remove, con- tain, treat, detoxify or neutralize, (1) An "employee" of the insured arising out or in any way respond to, or as- of and in the course of: sess the effects of pollutants. (a) Employment by the insured; or Subparagraphs (a) and (d)(i) do not ap- (b) Performing duties related to the con- ply to "bodily injury" or "property dam- duct of the insured's business; or age" arising out of heat, smoke or fumes (2) The spouse, child, parent, brother or from a hostile fire. sister of that "employee" as a conse- As used in this exclusion, a hostile fire quence of (1) above. means one which becomes uncontrolla- This exclusion applies: ble or breaks out from where it was in- tended to be. (1) Whether the insured may be liable as an (2) Any loss, cost or expense arising out of employer or in any other capacity; and (2) To any obligation to share damages with any: or repay someone else who must pay (a) Request, demand or order that any damages because of the injury, insured or others test for, monitor, This exclusion does not apply to liability as- clean up, remove, contain, treat, de- sumed by the insured under an "insured toxify or neutralize, or in any way re- contract " spond to, or assess the effects of . pollutants; or f. Pollution (b) Claim or suit by or on behalf of a (1) "Bodily injury" or "property damage" governmental authority for damages arising out of the actual, alleged or because of testing for, monitoring, threatened discharge, dispersal, seep- cleaning up, removing, containing, age, migration, release or escape of pol- treating, detoxifying or neutralizing, lutants: or in any way responding to, or as- (a) At or from any premises, site or loca- sessing the effects of pollutants. tion which is or was at any time Pollutants means any solid, liquid, gaseous owned or occupied by, or rented or or thermal irritant or contaminant, including loaned to, any insured; smoke, vapor, soot, fumes, acids, alkalis, (b) At or from any premises, site or loca- chemicals and waste. Waste includes mate- tion which is or was at any time used rials to be recycled, reconditioned or re- by or for any insured or others for the claimed. handling, storage, disposal, proc- g. Aircraft, Auto or Watercraft essing or treatment of waste; "Bodily injury" or "property damage" arising (c) Which are or were at any time trans- out of the ownership, maintenance, use or ported, handled, stored, treated, dis- entrustment to others of any aircraft, "auto" posed of, or processed as waste by or watercraft owned or operated by or rented or for any insured or any person or or loaned to any insured. Use includes op- organization for whom you may be eration and "loading or unloading," legally responsible; or This exclusion does not apply to: (d) At or from any premises, site or loca- tion on which any insured or any (1) A watercraft while ashore on premises contractors or subcontractors work- you own or rent; ing directly or indirectly on any in- (2) A watercraft you do not own that is: sured's behalf are performing opera- (a) Less than 26 feet long; and tions: Page 2 of 11 Copyright, Insurance Services Office, Inc., 1992 CG 00 01 10 93 COMMERCIAL GENERAL LIABILITY (b) Not being used to carry persons or Paragraph (2) of this exclusion does not ap- property for a charge; ply if the premises are "your work" and were (3) Parking an "auto" on, or on the ways next never occupied, rented or held for rental by to, premises you own or rent, provided you. the "auto" is not owned by or rented or Paragraphs (3), (4), (5) and (6) of this exclu- loaned to you or the insured; sion do not apply to liability assumed under a (4) Liability assumed under any "insured sidetrack agreement. contract" for the ownership, maintenance Paragraph (6) of this exclusion does not ap- or use of aircraft or watercraft; or ply to "property damage" included in the (5) "Bodily injury" or "property damage" "products-completed operations hazard." arising out of the operation of any of the k. Damage to Your Product equipment listed in paragraph f.(2) or "Property damage" to "your product" arising f.(3) of the definition of "mobile equip- out of it or any part of it. ment". I. Damage to Your Work h. Mobile Equipment "Property damage" to "your work" arising out "Bodily injury" or "property damage" arising of it or any part of it and included in the out of: "products-completed operations hazard." (1) The transportation of "mobile equipment" This exclusion does not apply if the damaged by an "auto" owned or operated by or work or the work out of which the damage rented or loaned to any insured; or arises was performed on your behalf by a (2) The use of "mobile equipment" in, or subcontractor. while in practice for, or while being pre- m. Damage to Impaired Property or Property pared for, any prearranged racing, Not Physically Injured speed, demolition, or stunting activity. "Property damage" to "impaired property" or I. War property that has not been physically injured "Bodily injury" or "property damage" due to arising out of: war, whether or not declared, or any act or (1) A defect, deficiency, inadequacy or dan- condition incident to war. War includes civil gerous condition in "your product" or war, insurrection, rebellion or revolution. This "your work"; or exclusion applies only to liability assumed under a contract or agreement. (2) A delay or failure by you or anyone act- ing on your behalf to perform a contract j. Damage to Property or agreement in accordance with its "Property damage" to: terms. (1) Property you own, rent, or occupy; This exclusion does not apply to the loss of (2) Premises you sell, give away or aban- use of other property arising out of sudden don, if the "property damage" arises out and accidental physical injury to "your prod- of any part of those premises; uct" or "your work" after it has been put to its intended use. (3) Property loaned to you; n. Recall of Products, Work or Impaired Prop- (4) Personal property in the care, custody or erty control of the insured; (5) That particular part of real property on Damages claimed for any loss, cost or ex- which you or any contractors or subcon- pense incurred by you or others for the foss of use, withdrawal, recall, inspection, repair, tractors working directly or indirectly on replacement, adjustment, removal or dis- your behalf are performing operations, if " " posal of: the property damage arises out of those operations; or (1) "Your product"; (6) That particular part of any property that (2) "Your work" or must be restored, repaired or replaced (3) "Impaired property"; because "your work" was incorrectly performed on it. CG 00 01 10 93 Copyright, Insurance Services Office, Inc., 1992 Page 3 of 11 COMMERCIAL GENERAL LIABILITY 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. Exclusions c. through n, do not apply to damage by fire to premises while rented to you or tempo- rarily occupied by you with permission of the owner. A separate limit of insurance applies to this coverage as described in LIMITS OF IN- SURANCE (SECTION Iil). COVERAGE B. PERSONAL AND ADVERTISING INJURY LIABILITY 1. Insuring Agreement. a. We will pay those sums that the insured be- comes legally obligated to pay as damages because of "personal injury" or "advertising injury" to which this insurance applies. We will have the right and duty to defend any "suit" seeking those damages. We may at our discretion investigate any "occurrence" or offense and settle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in LIMITS OF IN- SURANCE (SECTION III); and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverage A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under SUPPLEMEW TARY PAYMENTS - COVERAGES A AND B. b. This insurance applies to: (1) "Personal injury" caused by an offense arising out of your business, excluding advertising, publishing, broadcasting or telecasting done by or for you; (2) "Advertising injury" caused by an offense committed in the course of advertising your goods, products or services; but only it the offense was committed in the "coverage territory" during the policy period. 2. Exclusions. This insurance does not apply to: a. "Personal injury" or "advertising injury": (1) Arising out of oral or written publication of material, if done by or at the direction of the insured with knowledge of its falsity; (2) Arising out of oral or written publication of material whose first publication took place before the beginning of the policy period; (3) Arising out of the willful violation of a pe- nal statute or ordinance committed by or with the consent of the insured; or (4) For which the insured has assumed liabi- lity in a contract or agreement. This ex- clusion does not apply to liability for damages that the insured would have in the absence of the contract or agree- ment. b. "Advertising injury arising out of: (1) Breach of contract, other than misappro- priation of advertising ideas under an im- plied contract; (2) The failure of goods, products or services to conform with advertised quality or performance; (3) The wrong description of the price of goods, products or services; or (4) An offense committed by an insured whose business is advertising, broad- casting, publishing or telecasting. COVERAGE C. MEDICAL PAYMENTS 1. Insuring Agreement. 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: (1) The accident takes place in the "cover- age territory" and during the policy pe- riod; (2) The expenses are incurred and reported to us within one year of the date of the accident; and (3) The injured person submits to examina- tion, at our expense, by physicians of our choice as often as we reasonably re- quire. b.. We will make these payments regardless of fault. These payments will not exceed the Page 4 of 11 Copyright, Insurance Services Office, Inc., 1992 CG 00 01 10 93 COMMERCIAL GENERAL LIABILITY applicable limit of insurance. We will pay rea- sonable expenses for: (1) First aid administered at the time of an accident; (2) Necessary medical, surgical, x-ray and dental services, including prosthetic de- vices; and (3) Necessary ambulance, hospital, profes- sional nursing and funeral services. 2. Exclusions. We will not pay expenses for "bodily injury": a. To any insured. 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 injury" are payable or must be provided under a workers compensation or disability benefits law or a similar law. e. To a person injured while taking part in ath- letics. f. Included within the "products-completed op- erations hazard." g. Excluded under Coverage A. h. Due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. SUPPLEMENTARY PAYMENTS - COVERAGES A AND B We will pay with respect to any claim or "suit" we defend: 1. All expenses we incur. 2. Up to $250 for cost of bail bonds required be- cause of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Liability Coverage applies. We do not have to furnish these bonds. 3. The cost of bonds to release attachments, but only for bond amounts within the applicable limit of insurance. We do not have to furnish these bonds. 4. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit," including actual loss of earnings up to $100 a day because of time off from work. 5. All costs taxed against the insured in the "suit." 6. Prejudgment interest awarded against the in- sured on that part of the judgment we pay. If we make an offer to pay the applicable limit of insur- ance, we will not pay any prejudgment interest based on that period of time after the offer. 7. All interest on the full amount of any judgment that accrues after entry of the judgment and be- fore we have paid, offered to pay, or deposited in court the part of the judgment that is within the applicable limit of insurance. These payments will not reduce the limits of insur- ance. SECTION II - WHO IS AN INSURED 1. If you are designated in the Declarations as: a. An individual, you and your spouse are in- sureds, but only with respect to the conduct of a business of which you are the sole owner. b. A partnership or joint venture, you are an in- sured. Your members, your partners, and their spouses are also insureds, but only with respect to the conduct of your business. c. An organization other than a partnership or joint venture, you are an insured. Your "ex- ecutive officers" and directors are insureds, but only with respect to their duties as your officers or directors. Your stockholders are also insureds, but only with respect to their liability as stockholders. 2. Each of the following is also an insured: a. Your "employees," other than your "executive officers," but only for acts within the scope of their employment by you or while performing duties related to the conduct of your busi- ness. However, no "employee" is an insured for: (1) "Bodily injury" or "personal injury": (a) To you, to your partners or members (if you are a partnership or joint venture), or to a co-"employee" while in the course of his or her employ- ment or while performing duties re- lated to the conduct of your busi- ness; (b) To the spouse, child, parent, brother or sister of that co-"employee" as a consequence of paragraph (1)(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 paragraphs (1)(a) or (b) above; or CG 00 01 10 93 Copyright, Insurance Services Office, Inc., 1992 Page 5 of 11 COMMERCIAL GENERAL LIABILITY (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 purpose by you, any of your "employees" or, if you are a partnership or joint venture, by any partner or member. b. Any person (other than your "employee"), 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 Coverage Part. 3. With respect to "mobile equipment" registered in your name under any motor vehicle registration law, any person is an insured while driving such equipment along a public highway with your per- mission. Any other person or organization re- sponsible for the conduct of such person is also an insured, but only with respect to liability 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 re- spect to: a. "Bodily injury" to a co-"employee" of the per- son driving the equipment; or a. Coverage under this provision is afforded only until the 90th day after you acquire or form the organization or the end of the policy period, whichever is earlier; b. Coverage A does not apply to "bodily injury" or "property damage" that occurred before you acquired or formed the organization; and c. Coverage B does not apply to "personal in- jury" or "advertising injury" arising out of an offense committed before you acquired or formed the organization. No person or organization is an insured with respect to the conduct of any current or past partnership or joint venture that is not shown as a Named Insured in the Declarations. SECTION III - LIMITS OF INSURANCE The Limits of Insurance shown in the Declara- tions and the rules below 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 General Aggregate Limit is the most we will pay for the sum of: a. Medical expenses under Coverage C; b. Damages under Coverage A, except dam- ages because of "bodily injury" or "property damage" included in the "products-completed operations hazard"; and c. Damages under Coverage B. 3. The Products-Completed Operations Aggregate Limit is the most we will pay under Coverage A for damages because of "bodily injury" and "property damage" included in the "products- completed operations hazard." 4. 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 in- 5. sured under this provision. 4. Any organization you newly acquire or form, other than a partnership or joint venture, and over which you maintain ownership or majority inter- est, will qualify as a Named Insured if there is no other similar insurance available to that organiza- tion. However: Subject to 2. above, the Personal and Advertising Injury Limit is the most we will pay under Cover- age B for the sum of all damages because of all "personal injury" and all "'advertising injury" sus- tained by any one person or organization. Subject to 2. or 3. above, whichever applies, the Each Occurrence Limit is the most we will pay for the sum of: a. Damages under Coverage A; and b. Medical expenses under Coverage C because of all "bodily injury" and "property dam- age" arising out of any one "occurrence." Page 6 of 11 Copyright, Insurance Services Office, Inc., 1992 CG 00 01 10 93 COMMERCIAL GENERAL LIABILITY 6. Subject to 5. above, the Fire Damage Limit is the most we will pay under Coverage A 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. 7. Subject to 5. above, the Medical Expense Limit is the most we will pay under Coverage C for all medical expenses because of "bodily injury" sustained by any one person. The Limits of Insurance of this Coverage Part apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for pur- poses of determining the Limits of Insurance. SECTION IV - COMMERCIAL GENERAL LIABIL- ITY CONDITIONS 1. Bankruptcy. Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obliga- tions under this Coverage Part. 2. Duties In The Event Of 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 no- tice of the claim or "suit" as soon as practica- ble. c. You and any other involved insured must: (1) Immediately send us copies of any de- mands, notices, summonses or legal pa- pers received in connection with the claim or "suit"; (2) Authorize us to obtain records and other information; (3) Cooperate with us in the investigation, settlement or defense of the claim or "suit": and (4) Assist us, upon our request, in the en- forcement of any right against any per- son or organization which may be liable to the insured because of injury or dam- age to which this insurance may also ap- ply- d. No insureds will, except at their own cost, voluntarily make a payment, assume any ob- ligation, or incur any expense, other than for first aid, without our consent. 3. Legal Action Against Us. No person or organization has a right under this Coverage Part: a. To join us as a party or otherwise bring us into a "suit" asking for damages from an in- sured; or b. To sue us on this Coverage Part unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured obtained after an actual trial; but we will not be liable for damages that are not payable under the terms of this Coverage Part or that are in excess of the applicable limit of insur- ance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal repre- sentative. 4. Other Insurance. If other valid and collectible insurance is available to the insured for a loss we cover under Cover- ages A or B of this Coverage Part, our obligations are limited as follows: a. Primary Insurance This insurance is primary except when b. below applies. If this insurance is primary, our obligations are not affected unless any of the other insurance is also primary. Then, we will share with all that other insurance by the method described in c. below. CG 00 01 10 93 Copyright, Insurance Services Office, Inc., 1992 Page 7 of 11 COMMERCIAL GENERAL LIABILITY b. Excess Insurance This insurance is excess over any of the other insurance, whether primary, excess, contingent or on any other basis: (1) That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for "your work"; (2) That is Fire insurance for premises rented to you; or (3) If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to Exclusion g. of Coverage A (Section 1). When this insurance is excess, we will have no duty under Coverage A or B to defend any claim or "suit" that any other insurer has a duty to defend. If no other insurer defends, we will undertake to do so, but we will be en- titled to the insured's rights against all those other insurers. 5. Premium Audit. a. We will compute all premiums for this Cover- age Part in accordance with our rules and rates. b. Premium shown in this Coverage Part as ad- vance premium is a deposit premium only. At the close of each audit period we will com- pute the earned premium for that period. Audit premiums are due and payable on no- tice to the first Named Insured. If the sum of the advance and audit premiums paid for the policy period is greater than the earned pre- mium, we will return the excess to the first Named Insured. c. The first Named Insured must keep records of the information we need for premium com- putation, and send us copies at such times as we may request. 6. Representations. By accepting this policy, you agree: When this insurance is excess over other in- surance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of: (1) The total amount that all such other in- surance would pay for the loss in the ab- sence of this insurance; and (2) The total of all deductible and self- insured amounts under all that other in- surance. We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations of this Coverage Part. c. Method of Sharing If all of the other insurance permits contribu- tion by equal shares, we will follow this method also. Under this approach each in- surer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first. If any of the other insurance does not permit contribution by equal shares, we will contrib- ute by limits. Under this method, each in- surer's share is based on the ratio of its ap- plicable limit of insurance to the total applicable limits of insurance of all insurers. a. The statements in the Declarations are accu- rate and complete; b. Those statements are based upon repre- sentations you made to us; and c. We have issued this policy in reliance upon your representations. 7. Separation Of Insureds. Except with respect to the Limits of Insurance, and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this 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. 8. Transfer Of Rights Of Recovery Against Others To Us. If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are transferred to us. The in- sured must do nothing after loss to impair them. At our request, the insured will bring "suit" or transfer those rights to us and help us enforce them. 9. When We Do Not Renew. If we decide not to renew this Coverage Part, we will mail or deliver to the first Named Insured shown in the Declarations written notice of the nonrenewal not less than 30 days before the ex- piration date. Page 8 of 11 Copyright, Insurance Services Office, Inc., 1992 CG 00 01 10 93 COMMERCIAL GENERAL LIABILITY If notice is mailed, proof of mailing will be suffi- 7. "Impaired property" means tangible property, cient proof of notice. other than "your product" or "your work," that SECTION V - DEFINITIONS cannot be used or is less useful because: 1. "Advertising injury" means injury arising out of a. It incorporates "your product" or "your work" one or more of the following offenses: that is known or thought to be defective, defi- cient, inadequate or dangerous; or a. Oral or written publication of material that b You have failed to fulfill the terms of a con- slanders or libels a person or organization or . disparages a person's or organization's tract or agreement; goods, products or services; if such property can be restored to use by: b. Oral or written publication of material that a. The repair, replacement, adjustment or re- violates a person's right of privacy; moval of "your product" or "your work"; or c. Misappropriation of advertising ideas or style b. Your fulfilling the terms of the contract or of doing business; or agreement. d. Infringement of copyright, title or slogan. 8. "Insured contract" means: 2. "Auto" means a land motor vehicle, trailer or a. A contract for a lease of premises. However, semitrailer designed for travel on public roads, that portion of the contract for a lease of including any attached machinery or equipment. premises that indemnifies any person or or- But "auto" does not include "mobile equipment." ganization for damage by fire to premises 3. "Bodily injury" means bodily injury, sickness or while rented to you or temporarily occupied disease sustained by a person, including death by you with permission of the owner is not an "insured contract"; resulting from any of these at any time. b. A sidetrack agreement; 4. "Coverage territory" means: c. Any easement or license agreement, except a. The United States of America (including its in connection with construction or demolition territories and possessions), Puerto Rico and operations on or within 50 feet of a railroad; Canada; d. An obligation, as required by ordinance, to b. International waters or airspace, provided the indemnify a municipality, except in connec- injury or damage does not occur in the tion with work for a municipality; course of travel or transportation to or from any place not included in a. above; or e. An elevator maintenance agreement; c. All parts of the world if: f. That part of any other contract or agreement (1) The injury or damage arises out of: pertaining to your business (including an in- demnification of a municipality in connection (a) Goods or products made or sold by with work performed for a municipality) under you in the territory described in a. which you assume the tort liability of another above; or party to pay for "bodily injury" or "property (b) The activities of a person whose damage" to a third person or organization. home is in the territory described in Tort liability means a liability that would be a. above but is away for a short time imposed by law in the absence of any con- , on your business; and tract or agreement. (2) The insured's responsibility to pay dam- Paragraph I. does not include that part of any ages is determined in a "suit" on the contract or agreement: merits, in the territory described in a. (1) That indemnifies a railroad for "bodily injury" above or in a settlement we agree to. or "property damage" arising out of construc- 5. "Employee" includes a "leased worker." "Em- tion or demolition operations, within 50 feet of ployee" does not include a "temporary worker." any railroad property and affecting any rail- road bridge or trestle, tracks, road-beds, tun- 6. "Executive officer" means a person holding any nel, underpass or crossing; of the officer positions created by your charter, (2) That indemnifies an architect, engineer or constitution, by-laws or any other similar govern- surveyor for injury or damage arising out of: ing document. CG 00 01 10 93 Copyright, Insurance Services Office, Inc., 1992 Page 9 of 11 COMMERCIAL GENERAL LIABILITY (a) Preparing, approving or failing to prepare or approve maps, drawings, opinions, re- ports, surveys, change orders, designs or specifications; or (b) Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or damage; or (3) Under which the insured, if an architect, en- gineer or surveyor, assumes liability for an injury or damage arising out of the insured's rendering or failure to render professional services, including those listed in (2) above and supervisory, inspection or engineering services. 9. "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 perform duties related to the conduct of your business. "Leased worker" does not include a "temporary worker." 10. "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, wa- tercraft or "auto" to the place where it is fi- nally delivered; but "loading or unloading" does not include the movement of property by means of a mechanical device, other than a hand truck, that is not at- tached to the aircraft, watercraft or "auto." 11. "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, maintained primarily to provide mobility to 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 a., b., c. or d. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the fol- lowing 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 a., b., c. or d. above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not "mobile equipment" but will be considered "autos": (1) Equipment designed primarily for: (a) Snow removal; (b) Road maintenance but not construc- tion or surfacing; 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. 12. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions. 13. "Personal injury" means injury, other than "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 by or on behalf of its owner, landlord or lessor; d. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; or e. Oral or written publication of material that violates a person's right of privacy. Page 10 of 11 Copyright, Insurance Services Office, Inc., 1992 CG 00 01 10 93 COMMERCIAL GENERAL LIABILITY 14. a. "Products-completed operations hazard" 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. b. "Your work" will be deemed completed at the earliest of the following times: (1) When all of the work called for in your contract has been completed. (2) When all of the work to be done at the site has been completed if your contract calls for work at more than one site. (3) When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or subcontractor working on the same project. Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. c. This hazard does not include "bodily injury" or "property damage" arising out of: (t) The transportation of property, unless the injury or damage arises out of a condition in or on a vehicle created by the "loading or unloading" of it; (2) The existence of tools, uninstalled equipment or abandoned or unused ma- terials; or (3) Products or operations for which the classification in this Coverage Part or in our manual of rules includes products or completed operations. 15. "Property damage" means: a. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or 16. "Suit" means a civil proceeding in which dam- ages because of "bodily injury," "property dam- age," "personal injury" or "advertising injury" to which this insurance applies are alleged. "Suit" includes: a. An arbitration proceeding in which such damages are claimed and to which you must submit or do submit with our consent; or b. Any other alternative dispute resolution pro- ceeding in which such damages are claimed and to which you submit with our consent. 17. "Your product" means: a. Any goods or products, other than real prop- erty, manufactured, sold, handled, distributed or disposed of by: (1) You; (2) Others trading under your name; or (3) A person or organization whose business or assets you have acquired; and b. Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. "Your product" includes: a. Warranties or representations made at any time with respect to the fitness, quality, dura- bility, performance or use of "your product"; and b. The providing of or failure to provide wam- ings or instructions. "Your product" does not include vending ma- chines or other property rented to or located for the use of others but not sold. 18. "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. 19. "Your work" means: a. Work or operations performed by you or on your behalf; and b. Materials, parts or equipment furnished in connection with such work or operations. "Your work" includes: b. Loss of use of tangible property that is not a. Warranties or representations made at any physically injured. All such loss of use shall time with respect to the fitness, quality, dura- be deemed to occur at the time of the "occur- bility, performance or use of "your work"; and rence" that caused it. b. The providing of or failure to provide wam- ings or instructions. CG 00 01 10 93 Copyright, Insurance Services Office, Inc., 1992 Page 11 of 11 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDMENT OF INSURING AGREEMENT- KNOWN INJURY OR DAMAGE This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART (OCCURRENCE VERSION) Paragraph 1. Insuring Agreement of Section I - Coverage A - Bodily Injury And Property Damage Liability is replaced by the following: 1. Insuring Agreement a. We will pay those sums that the insured be- comes legally obligated to pay as damages because of "bodily injury" or "property dam- age" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "bodily injury" or "property damage" to which this insurance does not apply. We may, at our discretion, investigate any "oc- currence" and settle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in Section III - Limit Of Insurance; and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverages A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Supplementary Payments - Coverages A and B. b. This insurance applies to "bodily injury" and "property damage" only if: (1) The "bodily injury" or "property damage" is caused by an "occurrence" that takes place in the "coverage territory"; (2) The "bodily injury" or "property damage" occurs during the policy period; and (3) Prior to the policy period, no insured listed under Paragraph 1. of Section II - Who Is An Insured and no "employee" authorized by you to give or receive no- tice of an "occurrence" or claim, knew that the "bodily injury" or "property dam- age" had occurred, in whole or in part. If such a listed insured or authorized "em- ployee" knew, prior to the policy period, that the "bodily injury" or "property dam- age" occurred, then any continuation, change or resumption of such "bodily in- jury" or "property damage" during or after the policy period will be deemed to have been known prior to the policy period. c. "Bodily injury" or "property damage" which occurs during the policy period and was not, prior to the policy period, known to have oc- curred by any insured listed under Paragraph 1. of Section II - Who Is An Insured or any "employee" authorized by you to give or re- ceive notice of an "occurrence" or claim, in- cludes any continuation, change or resump- tion of that "bodily injury" or "property damage" after the end of the policy period. d. "Bodily injury" or "property damage" will be deemed to have been known to have oc- curred at the earliest time when any insured listed under Paragraph 1. of Section II - Who Is An Insured or any "employee" authorized by you to give or receive notice of an 'occur- rence" or claim: (1) Reports all, or any part, of the "bodily in- jury" or "property damage" to us or any other insurer; (2) Receives a written or verbal demand or claim for damages because of the "bodily injury" or "property damage"; or (3) Becomes aware by any other means that "bodily injury" or "property damage" has occurred or has begun to occur. e. Damages because of "bodily injury" include damages claimed by any person or organiza- tion for care, loss of services or death result- ing at any time from the "bodily injury". CG 00 57 09 99 Copyright, Insurance Services Office, Inc., 1998 Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CHANGES IN COMMERCIAL GENERAL LIABILITY COVERAGE FORM This endorsement modifies insurance provided under the following COMMERCIAL GENERAL LIABILITY COVERAGE PART PROVISIONS b. "Bodily injury" or "property damage" for which the insured is obligated to pay dam- A. Paragraph t.a. of COVERAGE A. - BODILY IN- ages by reason of the assumption of li- JURY AND PROPERTY DAMAGE LIABILITY ability in a contract or agreement. This ex- (Section I - Coverages) is deleted and replaced clusion does not apply to liability for damages: 1. Insuring Agreement (1) That the insured would have in the a. We will pay those sums that the insured absence of the contract or agree- becomes legally obligated to pay as dam- ment; or ages because of "bodily injury" or "prop- (2) Assumed in a contract or agreement erty damage" to which this insurance ap- that is an "insured contract" provided plies. We will have the right and duty to " " the "bodily injury" or "property dam- suit defend the insured against any age" occurs subsequent to the execu- seeking those damages. However, we will tion of the contract or agreement. have no duty to defend the insured Solely for the purposes of liability as- against any "suit" seeking damages for sumed in an "insured contract", rea- "bodily injury" or "property damage" to sonable attorney fees and necessary which this insurance does not apply. We litigation expenses incurred by or for may, at our discretion, investigate any " " a party other than an insured are suit "occurrence" and settle any claim or deemed to be damages because of that may result. But: "bodily injury" or "property damage", (1) The amount we will pay for damages provided: is limited as described in LIMITS OF (a) Liability to such party for, or for INSURANCE (SECTION III); and the cost of, that party's defense (2) Our right and duty to defend end has also been assumed in the when we have used up the applicable same "insured contract"; and limit of insurance in the payment of (b) Such attorney fees and litigation judgments or settlements under Cov- expenses are for defense of that erages A or B or medical expenses parry against a civil or alternative under Coverage C. dispute resolution proceeding in No other obligation or liability to pay sums which damages to which this in- or perform acts or services is covered un- surance applies are alleged. less explicitly provided for under SUP- PLEMENTARY PAYMENTS - COVER- C. Paragraph 1.a. of COVERAGE B. - PERSONAL AGES A AND B. AND ADVERTISING INJURY LIABILITY (Section I - Coverages) is deleted and replaced by the B. Paragraph 2.b. of COVERAGE A. - BODILY IN- following: JURY AND PROPERTY DAMAGE LIABILITY 1. Insuring Agreement (Section I - Coverages) is deleted and replaced by the following: a. We will pay those sums that the insured becomes legally obligated to pay as dam- 2. Exclusions ages because of "personal injury" or "ad- This insurance does not apply to: vertising injury" to which this insurance CG D1 94 11 97 Copyright, Travelers Indemnity Company, 1997 Page 1 of 5 COMMERCIAL GENERAL LIABILITY applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "personal injury" or "advertising injury" to which this insurance does not apply. We may, at our discretion, investigate any "occurrence" or offense and settle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in LIMITS OF INSURANCE (SECTION III); and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Cov- erages A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered un- less explicitly provided for under SUP- PLEMENTARY PAYMENTS - COVER- AGES A AND B. D. The following is added to Paragraph 2. Exclusions of COVERAGE B. - PERSONAL AND ADVER- TISING INJURY LIABILITY (Section I - Cover- ages): (This insurance does not apply to:) 1. "Personal injury" or "advertising injury" arising out of the actual, alleged or threatened dis- charge, dispersal, seepage, migration, release or escape of pollutants at any time. 2. Any loss, cost or expense arising out of any: a. Request, demand or order that any in- sured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutral- ize, or in any way respond to, or assess the effects of pollutants; or b. Claim or suit by or on behalf of a govern- mental authority for damages because of testing for, monitoring, cleaning up, re- moving, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of pollutants. E. SUPPLEMENTARY PAYMENTS - COVERAGES A AND B (Section I - Coverages) is amended as follows: 1. The first sentence is deleted and replaced by the following: We will pay, with respect to any claim we in- vestigate or settle, or any "suit" against an insured we defend: 2. Paragraph 4. is deleted and replaced by the following: 4. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual loss of earnings up to $250 a day because of time off from work. 3. The following is added: If we defend an insured against a "suit" and an indemnitee of the insured is also named as a parry to the "suit", we will defend that indem- nitee if all of the following conditions are met: a. The "suit" against the indemnitee seeks damages for which the insured has as- sumed the liability of the indemnitee in a contract or agreement that is an "insured contract; b. This insurance applies to such liability as- sumed by the insured; c. The obligation to defend, or the cost of the defense of, that indemnitee, has also been assumed by the insured in the same "insured contract"; d. The allegations in the "suit" and the infor- mation we know about the "occurrence" are such that no conflict appears to exist between the interests of the insured and the interests of the indemnitee: e. The indemnitee and the insured ask us to conduct and control the defense of that indemnitee against such "suit" and we agree that we can assign the same coun- sel to defend the insured and the indemni- tee; and f. The indemnitee: Pollutants means any solid, liquid, gaseous or (1) Agrees in writing to: thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and (a) Cooperate with us in the investi- waste. Waste includes materials to be recycled, gation, settlement or defense of reconditioned or reclaimed. the "suit"; Page 2 of 5 Copyright, Travelers Indemnity Company, 1997 CG D1 94 11 97 COMMERCIAL GENERAL LIABILITY (b) Immediately send us copies of any demands, notices, sum- monses or legal papers received in connection with the "suit"; (c) Notify any other insurer whose coverage is available to the in- demnitee; and (d) Cooperate with us with respect to coordinating other applicable in- surance available to the indemni- tee; and (2) Provides us with written authorization to: the conduct of a business of which you are the sole owner. b. A partnership or joint venture, you are an insured. Your members, your part- ners, and their spouses are also in- sureds, but only with respect to the conduct of your business. c. A limited liability company, you are an insured. Your members are also in- sureds, but only with respect to the conduct of your business. Your man- agers are insureds, but only with re- spect to their duties as your managers. (a) Obtain records and other informa- tion related to the "suit"; and (b) Conduct and control the defense of the indemnitee in such "suit". So long as the above conditions are met, at- tomeys fees incurred by us in the defense of that indemnitee, necessary litigation expenses incurred by us and necessary litigation ex- penses incurred by the indemnitee at our re- quest will be paid as Supplementary Payments. Notwithstanding the provisions of paragraph 2.b.(2) of COVERAGE A -- BOD- ILY INJURY AND PROPERTY DAMAGE LI- ABILITY (Section I -- Coverages), such payments will not be deemed to be damages for "bodily injury" and "property damage" and will not reduce the limits of insurance. Our obligation to defend an insured's indemni- tee and to pay for attorneys fees and neces- sary litigation expenses as Supplementary Payments ends when: a. We have used up the applicable limit of insurance in the payment of judgments or settlements; or b. The conditions set forth above, or the terms of the agreement described in para- graph f. above, are no longer met. F. WHO IS AN INSURED (Section II) is amended as follows in order to specifically include Limited Li- ability Companies: 1. Paragraphs 1. and 2.a. are deleted and re- placed by the following: d. An organization other than a partner- ship, joint venture or limited liability company, you are an insured. Your "executive officers" and directors are insureds, but only with respect to their duties as your officers or directors. Your stockholders are also insureds, but only with respect to their liability as stockholders. 2. Each of the following is also an insured: a. Your "employees", other than either your "executive officers" (if you are an organization other than a partnership, joint venture or limited liability com- pany) or your managers (if you are a limited liability company), but only for acts within the scope of their employ- ment by you or while performing du- ties related to the conduct of your business. However, none of these "employees" is an insured for: (1) "Bodily injury" or "personal injury"; (a) To you, to your partners or members (if you are a part- nership or joint venture), to your members (if you are a limited liability company), or to a co-"employee" while that co-"employee" is either in the course of his or her employ- ment or performing duties re- lated to the conduct of your business; 1. If you are designated in the Declarations (b) To the spouse , child, parent, as: brother or sister of that co- a. An individual, you and your spouse "employee" as a conse- are insureds, but only with respect to CG D1 94 11 97 Copyright, Travelers Indemnity Company, 1997 Page 3 of 5 COMMERCIAL GENERAL LIABILITY quence of paragraph (1)(a) above; (c) For which there is any obliga- tion to share damages with or repay someone else who must pay damages because of the injury described in paragraphs (1)(a) or (b) above;or (d) Arising out of his or her pro- viding or failing to provide professional health care serv- ices. (2) "Property damage" to property; (a) Owned, occupied or used by, (b) Rented to, in the care, cus- tody or control of, or over which physical control is be- ing exercised for any purpose by you, any of your "employees", any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). 2. The first sentence of paragraph 4. is deleted and replaced by the following: Any organization you newly acquire or form, other than a partnership, joint venture or lim- ited liability company, and over which you maintain ownership or majority interest, will quality as a Named Insured if there is no other similar insurance available to that organiza- tion. However: 3. The final paragraph is deleted and replaced by the following: No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named In- sured in the Declarations. G. Condition 2. Duties In The Event Of Occurrence, Offense, Claim or Suit (Section IV - Commercial General Liability Conditions) is amended as fol- lows: 1. Paragraph c.(3) is deleted and replaced by the following: c. You and any other involved insured must: (3) Cooperate with us in the investigation or settlement of the claim or defense against the "suit"; and 2. Paragraph d. is deleted and replaced by the following: d. No insured will, except at that insured's own cost, voluntarily make a payment, as- sume any obligation, or incur any ex- pense, other than for first aid, without our consent. H. Condition 4. Other Insurance (Section IV Com- mercial General Liability Conditions) is amended as follows: The first two paragraphs of paragraph b. are de- leted and replaced by the following: b. Excesslnsurance This insurance is excess over any of the other insurance, whether primary, excess, contin- gent or on any other basis: (1) That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for "your work"; (2) That is Fire insurance for premises rented to you or temporarily occupied by you with permission of the owner; or (3) If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to Exclusion g. of Coverage A (Section I - Coverages). When this insurance is excess, we will have no duty under Coverages A or B to defend the insured against any "suit" if any other insurer has a duty to defend the insured against that "suit". If no other insurer defends, we will un- dertake to do so, but we will be entitled to the insured's rights against all those other insur- ers. 1. DEFINITIONS (Section V) is amended as follows: 1. Definition 8. "insured contract" is amended as follows: a. Subpart f.(2)(a) is deleted and replaced by the following: (a) Preparing, approving, or failing to pre- pare or approve maps, shop draw- ings, opinions, reports, surveys, field orders, change orders or drawings and specifications; or Page 4 of 5 Copyright, Travelers Indemnity Company, 1997 CG D1 94 11 97 COMMERCIAL GENERAL LIABILITY b. Subpart f.(3) is deleted and replaced by the following: (3) Under which the insured, if an archi- tect, engineer or surveyor, assumes liability for injury or damage arising out of the insured's rendering or fail- ing to render professional services, including those listed in (2) above and supervisory, inspection, architectural or engineering activities. 2. Definition 14. "products-completed operations hazard" is amended as follows: Paragraph c.(1) is deleted and replaced by the following: c. This hazard does not include "bodily in- jury" or "property damage" arising out of: (1) The transportation of property, unless the injury or damage arises out of a condition in or on a vehicle not owned or operated by you, and that condition was created by the "loading or un- loading" of that vehicle by any in- sured; 3. Definition 16. "suit" is deleted and replaced by the following: "Suit" means a civil proceeding in which dam- ages because of "bodily injury", "property damage", "personal injury" or "advertising in- jury" to which this insurance applies are al- leged. "Suit" includes: a. An arbitration proceeding in which such damages are claimed and to which the insured 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. CG 01941197 Copyright, Travelers Indemnity Company, 1997 Page 5 of 5 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WEB XTEND-LIABILITY This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART PROVISIONS COVERAGE B. PERSONAL AND ADVERTISING INJURY LIABILITY (SECTION I - COVERAGES) is deleted in its entirety and replaced by the following: COVERAGE B. PERSONAL INJURY, ADVERTIS- ING INJURY AND WEB SITE INJURY LIABILITY 1. Insuring Agreement. a. We will pay those sums that the insured be- comes legally obligated to pay as damages because of "personal injury", "advertising in- jury" or "web site injury" to which this insur- ance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "personal in- jury", "advertising injury", or "web site injury" to which this insurance does not apply. We may at our discretion investigate any "occur- rence" or offense and settle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in LIMITS OF IN- SURANCE (SECTION - III); and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverage A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless ex- plicitly provided for under SUPPLEMENTARY PAYMENTS - COVERAGES A AND B. b. This insurance applies to: (1) "Personal injury" caused by an offense arising out of your business, excluding advertising, publishing, broadcasting or telecasting done by or for you; (2) "Advertising injury" caused by an offense committed in the course of advertising your goods, products or services; or (3) "Web site injury" caused by an offense committed in the course of the visual or audio presentation of material on "your web site" or in the numerical expression of computer code used to enable "your web site"; but only if the offense was committed in the "coverage territory" during the policy period. 2. Exclusions. This insurance does not apply to: a. "Personal injury", "advertising injury" or "web site injury": (1) Arising out of oral, written or electronic publication of material, if done by or at the direction of the insured with knowl- edge of its falsity; (2) Arising out of oral, written or electronic publication of material whose first publi- cation took place before the beginning of the policy period; (3) Arising out of the willful violation of a pe- nal statute or ordinance committed by or with the consent of the insured; or (4) Arising out of the actual, alleged or threatened discharge, dispersal, seep- age, migration, release or escape of "pollutants" at any time. b. Any loss, cost or expense arising out of any: (1) Request, demand or order that any in- sured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants; or (2) Claim or "suit" by or on behalf of a gov- ernmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxify- ing or neutralizing or in any way re- sponding to, or assessing the effects of, pollutants. CG D2 34 02 01 Copyright, The Travelers Indemnity Company, 2001 Page 1 of 3 COMMERCIAL GENERAL LIABILITY Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materi- als to be recycled, reconditioned or re- claimed. c. "Personal injury" for which the insured has assumed liability in a contract or agreement. This exclusion does not apply to liability: (1) Assumed in a contract or agreement that is an "insured contract", provided the "personal injury" arises out of an offense committed subsequent to the execution of the contract or agreement; or (2) That the insured would have in the ab- sence of the contract or agreement. d. "Advertising injury" arising out of: (1) Breach of contract; (2) The failure of goods, products or services to conform with advertised quality or performance; (3) The wrong description of the price of goods, products or services; (4) An offense committed by an insured whose business is advertising, broad- casting, publishing or telecasting; or (5) For which the insured has assumed li- ability 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. e. "Web site injury": (1) arising out of: (a) Breach of contract; (b) The failure of goods, products or services to conform with advertised quality or performance; (c) The wrong description of the price of goods, products or services; (d) Dishonest, fraudulent, criminal or malicious acts, errors or omissions committed by any insured, or by any- one for whom the insured is legally responsible, whether acting alone or with others; (e) An offense committed by any insured whose business is providing access to intellectual property of others via "your web site". (f) The hosting of an electronic chat- room or bulletin board. (2) expected or intended by any insured. SECTION II - WHO IS AN INSURED The introductory sentence of paragraph 2. a. (1) Section II Who Is An Insured is deleted and re- placed by the following: 2. a. (1) "Bodily injury", "personal injury" or "web site injury": Section II - Who Is An Insured, paragraph 4. c., is deleted and replaced by the following: 4. c. Coverage B does not apply to "personal injury", "advertising injury" or "web site injury" arising out of an offense committed before you acquired or formed the organization. SECTION III - LIMITS OF INSURANCE SECTION III - Limits Of insurance, paragraph 4, is deleted and replaced by the following: 4. Subject to 2. above, the Personal, Advertising and Web Site Injury Limit is the most we will pay under Coverage B for the sum of all damages because of all "personal injury", "advertising in- jury" and all "web site injury" sustained by any one person or organization. SECTION V - DEFINITIONS ADVERTISING INJURY The definition of "Advertising injury" (SECTION V - DEFINITIONS) is deleted in its entirety and re- placed by the following: 1. "Advertising injury" means injury, arising out of one or more of the following offenses: a. Oral, written or electronic publication of mate- rial that slanders or libels a person or organi- zation or disparages a person's or organiza- tion's goods, products or services; b. Oral, written or electronic publication of mate- rial that violates a person's right of privacy; c. Infringement of copyright; title or slogan. COVERAGE TERRITORY The definition of "Coverage Territory", (SECTION V - DEFINITIONS) is deleted in its entirety and re- placed by the following: a. The United States of America (including its territories and possessions), Puerto Rico and Canada; Page 2 of 3 Copyright, The Travelers Indemnity Company, 2001 CG D2 34 02 01 COMMERCIAL GENERAL LIABILITY 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 a. above; or c. All parts of the world if: (1) The injury or damage arises out of: (a) Goods or products made or sold by you in the territory described in a. above; (b) The activities of a person whose home is in the territory described in a. above, but who is away for a short time on your business; or (c) "Personal injury', "advertising injury", and "web site injury" offenses that take place through the Internet or similar electronic means of communication; and (2) The insured's responsibility to pay damages is determined in a "suit" on the merits, in the territory described in a. above or in a settle- ment we agree to. INSURED CONTRACT Subparagraph f. of the definition of "Insured Con- tract" (SECTION V - DEFINITIONS) is deleted and replaced by the following: f. That part of any other contract or agreement pertaining to your business (including an indem- nification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another party to pay for "bodily injury", "property damage" or "per- sonal injury" to a third party or organization. Tort liability means a liability that would be imposed by law in the absence of any contract or agree- ment. PERSONAL INJURY The definition of "Personal injury" (SECTION V - DEFINITIONS) is deleted in its entirety and replaced by the following: "Personal injury" means injury, other than "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 occupancy of a room, dwelling or premises that a person occu- pies by or on behalf of its owner, landlord or les- sor; d. Oral, written or electronic publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; or e. Oral, written or electronic publication of material that violates a person's right of privacy. SUIT The definition of "Suit" (SECTION V - DEFINI- TIONS) is deleted in its entirety and replaced by the following: "Suit" means a civil proceeding in which damages because of "bodily injury", "property damage", "per- sonal injury", "advertising injury" or "web site injury" to which this insurance applies are alleged. "Suit" includes: a. An arbitration proceeding in which such damages are claimed and to which you must submit or do submit with our consent; or b. Any other alternative dispute resolution proceed- ing in which such damages are claimed and to which you submit with our consent. The following definitions are added to SECTION V - DEFINITIONS WEB SITE INJURY "Web site injury", means injury, other than "personal injury" or "advertising injury", arising out of one or more of the following offenses: a. Oral, written or electronic publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; b. Oral, written or electronic publication of material that violates a person's right of privacy; c. Oral, written or electronic publication of material that violates a person's right of publicity; or d. Infringement of copyright, title or slogan. YOUR WEB SITE "Your web site" means all computer files and data which may be accessed via the Internet using a Universal Resource Locator that includes any domain name owned by or assigned to you. CG D2 34 02 01 Copyright, The Travelers Indemnity Company, 2001 Page 3 of 3 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EMPLOYMENT-RELATED PRACTICES EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART A. The following exclusion is added to paragraph 2., B. The following exclusion is added to paragraph 2., Exclusions of COVERAGE A-BODILY INJURY Exclusions of COVERAGE B- PERSONAL AND AND PROPERTY DAMAGE LIABILITY (Section 1 - ADVERTISING INJURY LIABILITY (Section I - Coverages): Coverages): This insurance does not apply to: This insurance does not apply to: 1. "Bodily 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, polic- ies, acts or omissions, such as coer- cion, demotion, evaluation, reassign- ment, discipline, defamation, harass- ment, 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" to that person at whom any of the employment-related practices described in paragraphs (1), (2) or (3) above is directed. 1. "Personal 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, polic- ies, acts or omissions, such as coer- cion, demotion, evaluation, reassign- ment, discipline, defamation, harass- ment, humiliation, or discrimination directed at that person; or b. The spouse, child, parent, brother or sister of that person as a consequence of "personal injury" to that person at whom any of the employment-related practices described in paragraphs (1), (2) or (3) above is directed. This exclusion applies a. whether the insured may be held 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 damages because of the injury. 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 damages because of the injury. CG 21 47 10 93 Copyright, Insurance Services Offices, Inc., 1992 Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION - YEAR 2000 COMPUTER-RELATED AND OTHER ELECTRONIC PROBLEMS - PRODUCTS/COMPLETED OPERATIONS This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART The following exclusion is added to Paragraph 2., Exclusions of Section I - Bodily Injury And Property Damage Liability: 2. Exclusions This insurance does not apply to "bodily injury", or "property damage" included in the "products- completed operations hazard" definition and aris- ing directly or indirectly out of: a. Any actual or alleged failure, malfunction or inadequacy of: (1) Any of the following, whether belonging to any insured or to others: (a) Computer hardware, including micro- processors; (b) Computer application software; (c) Computer operating systems and re- lated software; (d) Computer networks; (e) Microprocessors (computer chips) not part of any computer system; or (f) Any other computerized or electronic equipment or components; or (2) Any other products, and any services, data or functions that directly or indirectly use or rely upon, in any manner, any of the items listed in Paragraph 2.a.(1) of this endorsement. due to the inability to correctly recognize, process, distinguish, interpret or accept the year 2000 and beyond. b. Any advice, consultation, design, evaluation, inspection, installation, maintenance, repair, replacement or supervision provided or done by you or for you to determine, rectify or test for, any potential or actual problems de- scribed in Paragraph 2.a. of this endorse- ment. CG 21 61 04 98 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION-DISCRIMINATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART PROVISIONS 1. COVERAGE A - BODILY INJURY AND PROP- ERTY DAMAGE LIABILITY - is amended by ad- ding the following additional exclusion: (This Insurance does not apply to:) "Bodily injury" resulting from or as a consequence of discrimination, whether intentional or uninten- tional, based upon a person's sex, sexual prefer- ence, marital status, race, creed, religion, na- tional origin, age, physical capabilities, character- istics or condition, or mental capabilities or con- dition. 2. COVERAGE B - PERSONAL AND ADVERTIS- ING INJURY LIABILITY - is amended by adding the following additional exclusion: (This insurance does not apply to:) "Personal injury" resulting from or as a conse- quence of discrimination, whether intentional or unintentional, based upon a person's sex, sexual preference, marital status, race, creed, religion, national origin, age, physical capabilities, charac- teristics or condition, or mental capabilities or condition. CG D1 42 01 99 Copyright, The Travelers Indemnity Company, 1999 Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDMENT OF POLLUTION EXCLUSION - EXCEPTION FOR BUILDING HEATING EQUIPMENT This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART Subparagraph (1)(a) of the Pollution exclusion under Paragraph 2., Exclusions of Bodily Injury And Property Damage Liability Coverage (Section I - Coverages) is replaced by the following: This insurance does not apply to: POLLUTION (1) "Bodily injury" or "property damage" arising out of the actual, alleged or threatened discharge, dis- persal, seepage, migration, release or escape of pollutants: (a) At or from any premises, site or location which is or was at any time owned or occupied by, or rented or loaned to, any insured. However, Subparagraph (a) does not apply to "bodily injury" if sustained within a building and caused by smoke, fumes, vapor or soot from equipment used to heat that building. CG D1 92 08 97 Copyright, Travelers Indemnity Company, 1997 Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION - WAR This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART A. Exclusion L under Paragraph 2., Exclusions of B. The following exclusion is added to Paragraph 2., Section I - Coverage A - Bodily Injury And Exclusions of Section I - Coverage B - Per- Property Damage Liability is replaced by the sonal And Advertising Injury Liability: following: 2. Exclusions: 2. Exclusions: This insurance does not apply to: This insurance does not apply to: J. War "Bodily injury" or "property damage" aris- ing, 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 de- fending against an actual or expected attack, by any government, sovereign or other authority using military per- sonnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these regardless of any other cause or event that contributes concurrently or in any se- quence to the injury or damage. War "Personal injury" or "advertising injury" aris- ing, directly or indirectly, out of: (1) War, including undeclared or civil war; or (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 authority 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 regardless of any other cause or event that contributes concurrently or in any sequence to the injury. CG D2 42 01 02 Copyright, The Travelers Indemnity Company, 2002 Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION -AIRCRAFT PRODUCTS AND GROUNDING This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART PROVISIONS This insurance does not apply to "bodily injury" or "property damage" included within the "products- completed operations hazard" and arising out of any "aircraft product" or the "grounding of any aircraft. "Aircraft product" means: 1. Aircraft (including missile or spacecraft, and any ground support or control equipment used therewith); and 2. Any article furnished by the insured and in- stalled in an aircraft or used in connection with an aircraft, or for spare parts for an aircraft, including ground handling tools and equipment; and 3. Any of "your products" used at an airport for the purpose of guidance, navigation or direc- tion of aircraft; and 4. Training aids, manuals, blueprints, engineer- ing or other data or advice, and services and labor relating to such aircraft, articles or products. "Grounding" means the withdrawal of one or more aircraft from flight operations or the imposi- tion of speed, passenger or load restrictions on such aircraft, by reason of the existence of or alleged or suspected existence of any defect, fault or condition in such aircraft or any part thereof sold, handled or distributed by the in- sured or manufactured, assembled or processed by any other person or organization according to specifications, plans, suggestions, orders, or drawings of the insured or with tools, machinery or other equipment furnished to such persons or organizations by the insured, whether such aircraft so withdrawn are owned or operated by the same or different persons, organizations or corporations. CG T3 23 09 96 Copyright, The Travelers Indemnity Company, 1996. Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION -ASBESTOS This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART RAILROAD PROTECTIVE LIABILITY COVERAGE PART CATASTROPHE UMBRELLA POLICY This insurance does not apply to "bodily injury," "property damage," "personal injury" or "advertising injury" arising out of the actual or alleged presence or actual, alleged or threatened dispersal of asbes- tos, asbestos fibers or products containing asbestos, provided that the injury or damage is caused or con- tributed to by the hazardous properties of asbestos. This includes: a. Any supervision, instructions, recommendations, warnings or advice given or which should have been given in connection with the above; and b. Any obligation to share damages with or repay someone else who must pay damages because of such injury or damage. CG T4 78 02 90 Copyright, The Travelers Indemnity Company. Page 1 of 1 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LIMITATION WHEN TWO OR MORE POLICIES APPLY This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART EMPLOYEE BENEFITS LIABILITY COVERAGE PART LIQUOR LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART PROVISIONS Injury, damage or loss might be covered by this policy and also by other policies issued to you by us or any affiliate. When these other policies contain a provision similar to this one, the amount we will pay is limited. The maximum that we will pay under all such policies combined is the highest limit that applies in any one of these policies. 2. This does not apply to any personal liability policy or to any policy with a policy number con- taining the letters CUP, EX, PRS, SIPS, XS or IXL. CG T3 33 12 88 Page 1 of 1 INTERLINE ENDORSEMENTS TravelersPropertyCasualtp?j wwmea Travelers Group INTERLINE ENDORSEMENTS THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT (Broad Form) This endorsement modifies Insurance provided under the following: BUSINESSOWNERS POLICY COMMERCIAL AUTO COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART FARM COVERAGE PART LIQUOR LIABILITY COVERAGE PART OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART PROFESSIONAL LIABILITY COVERAGE PART RAILROAD PROTECTIVE LIABILITY COVERAGE PART SPECIAL PROTECTIVE AND HIGHWAY LIABILITY POLICY NEW YORK DEPARTMENT OF TRANSPORTATION UNDERGROUND STORAGE TANK POLICY 1. The Insurance does not apply: jury" resulting from the "hazardous properties" A. Under any Liability Coverage, to "bodily in- of "nuclear material" and arising out of the jury" or "property damage": operation of a "nuclear facility" by any person or organization. (1) With respect to which an "insured" under the policy is also an insured under a nu- C. Under any Liability Coverage, to "bodily in- clear energy liability policy issued by jury" or "property damage" resulting' from Nuclear Energy Liability Insurance Asso- "hazardous properties" of "nuclear material", ciation, Mutual Atomic Energy Liability if: Underwriters, Nuclear Insurance Associa- (1) The "nuclear material" (a) is at any "nu- tion of Canada or any of their successors, clear facility" owned by or operated by or or would be an insured under any such on behalf of, an "insured" or (b) has been policy but for its termination upon exhaus- discharged or dispersed therefrom; tion of its limit of liability; or (2) The "nuclear material" is contained in (2) Resulting from the "hazardous properties" "spent fuel" or "waste" at any time pos- of "nuclear material" and with respect to sessed, handled, used, processed, which (a) any person or organization is stored, transported or disposed of, by or required to maintain financial protection on behalf of an "insured"; or pursuant to the Atomic Energy Act of (3) The "bodily injury" or "property damage" 1954, or any law amendatory thereof, or arises out of the furnishing by an "in- (b) the "insured" is, or had this policy not sured" of services, materials, parts or been issued would be, entitled to indem- equipment in connection with the plan- nity from the United States of America, or ning, construction, maintenance, opera- any agency thereof, under any agreement tion or use of any "nuclear facility", but if entered into by the United States of Amer- such facility is located within the United ica, or any agency thereof, with any per- States of America, its territories or pos- son or organization. sessions or Canada, this exclusion (3) ap- B. Under any Medical Payments coverage, to plies only to "property damage" to such expenses incurred with respect to "bodily in- "nuclear facility" and any property thereat. IL 00 21 04 98 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 2 2. As used in this endorsement: "Hazardous properties" include radioactive, toxic or explosive properties; "Nuclear material" means "source material", "Spe- cial nuclear material" or "by-product material". "Source material", "special nuclear material", and "by-product material" have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; "Spent fuel" means any fuel element or fuel com- ponent, solid or liquid, which has been used or exposed to radiation in a "nuclear reactor'. Waste" means any waste material (a) containing "by-product material" other than the tailings or wastes produced by the extraction or concentra- tion of uranium or thorium from any ore processed primarily for its "source material" content, and (b) resulting from the operation by any person or or- ganization of any "nuclear facility" included under the first two paragraphs of the definition of "nu- clear facility". "Nuclear facility" means: (a) Any "nuclear reactor"; (b) Any equipment or device designed or used for (1) separating the isotopes of uranium or plu- tonium, (2) processing or utilizing "spent fuel", or (3) handling, processing or packaging "waste"; (c) Any equipment or device used for the proc- essing, fabricating or alloying of "special nu- clear material" if at any time the total amount of such material in the custody of the "in- sured" at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235; (d) Any structure, basin, excavation, premises or place prepared or used for the storage or dis- posal of "waste"; and includes the site on which any of the forego- ing is located, all operations conducted on such site and all premises used for such operations. "Nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self-support- ing chain reaction or to contain a critical mass of fissionable material. "Property damage" includes all forms of radioac- tive contamination of property. Page 2 of 2 Copyright, Insurance Services Office, Inc., 1997 IL 00 21 04 98 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PENNSYLVANIA CHANGES - ACTUAL CASH VALUE This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART COMMERCIAL CRIME COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART FARM COVERAGE PART STANDARD PROPERTY POLICY The following is added to any provision which uses the term actual cash value: Actual cash value is calculated as the amount it would cost to repair or replace Covered Property, at the time of loss or damage, with material of like kind and quality, subject to a deduction for deterioration, depreciation and obsolescence. Actual cash value applies to valuation of Covered Property regardless of whether that property has sustained partial or total loss or damage. The actual cash value of the lost or damaged property may be significantly less than its replacement cost. IL 01 66 01 99 Copyright, Insurance Services Office, Inc., 1998 Page 1 of 1 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PENNSYLVANIA CHANGES This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART COMMERCIAL CRIME COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART FARM COVERAGE PART A. For insurance provided under the: Boiler and Machinery Coverage Part Commercial Crime Coverage Part Commercial Inland Marine Coverage Part Commercial Property Coverage Part The TRANSFER OF YOUR RIGHTS AND DU- TIES UNDER THIS POLICY Common Policy Condition is replaced by the following: F. TRANSFER OF YOUR RIGHTS AND DU- TIES 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 legal rep- resentative is appointed, anyone having proper temporary custody of your property will have your rights and duties but only with re- spect to that property. If you die, this Coverage Part will remain in effect as provided in 1. or 2. below, whichever is later: 1. For 180 days after your death regardless of the policy period shown in the Declara- tions, unless the insured property is sold prior to that date; or 2. Until the end of the policy period shown in the Declarations, unless the insured 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 Declarations and any extension of that period. 3. For insurance provided under the: Commercial Inland Marine Coverage Part Commercial Property Coverage Part Farm Coverage Part The following is added to the LOSS PAYMENT Loss Condition and supersedes any provision to the contrary: NOTICE OF ACCEPTANCE OR DENIAL OF CLAIM 1. Except as provided in 3. below, we will give you notice, within 15 working days after we 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 denied. 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 pro- vided in 1.c. above, and thereafter every 45 days. The written notice will state why more time is needed to investigate your claim and when you may expect us to reach a decision on your claim 3. The notice procedures in 1. and 2. above do not apply if we have a reasonable basis, sup- ported by specific information, to suspect that an insured has fraudulently caused or con- tributed to the loss by arson or other illegal activity. Under such circumstances, we will notify you of the disposition of your claim within a period of time reasonable to allow full investigation of the claim, after we receive a properly executed proof of loss. -01721193 Copyright, Insurance Services Office, Inc., 1993 Page 1 of 1 Copyright, ISO Commercial Risk Services, Inc., 1993 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PENNSYLVANIA CHANGES - CANCELLATION AND NONRENEWAL This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART BUSINESSOWNERS POLICY COMMERCIAL AUTOMOBILE COVERAGE PART COMMERCIAL CRIME COVERAGE PART* COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART FARM COVERAGE PART LIQUOR LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART *This endorsement does not apply to coverage provided for employee dishonesty (Coverage Form A), or public employee dishonesty (Coverage Forms O and P). A. The Cancellation Common Policy Condition is re- placed by the following: CANCELLATION 1. The first Named Insured shown in the Decla- rations may cancel this policy by writing or giving notice of cancellation. 2. Cancellation Of Policies In Effect For Less Than 60 Days We may cancel this policy by mailing or deliv- ering to the first Named Insured written notice of cancellation at least 30 days before the ef- fective date of cancellation. 3. Cancellation Of Policies In Effect For 60 Days Or More If this policy has been in effect for 60 days or more or if this policy is a renewal of a policy we issued, we may cancel this policy only for one or more of the following reasons: a. You have made a material misrepresenta- tion which affects the insurability of the risk. Notice of cancellation will be mailed or delivered at least 15 days before the effective date of cancellation. b. You have failed to pay a premium when due, whether the premium is payable di- rectly to us or our agents or indirectly un- der a premium finance plan or extension of credit. Notice of cancellation will be mailed at least 15 days before the effec- tive date of cancellation. c. A condition, factor or loss experience ma- terial to insurability has changed substan- tially or a substantial condition, factor or loss experience material to insurability has become known during the policy pe- riod. Notice of cancellation will be mailed or delivered at least 60 days before the effective date of cancellation.' d. Loss of reinsurance or a substantial de- crease in reinsurance has occurred, which loss or decrease, at the time of cancellation, shall be certified to theinsur- ance Commissioner as directly affecting in-force policies. Notice of cancellation will be mailed or delivered at least 60 days before the effective date of cancellation. e. Material failure to comply with policy terms, conditions or contractual duties. Notice of cancellation will be mailed or de- livered at least 60 days before the effec- tive date of cancellation. f. Other reasons that the Insurance Com- missioner may approve. Notice of cancel- lation will be mailed or delivered at least 60 days before the effective date of can- cellation. IL 02 46 04 98 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 2 This policy may also be canceled from inception upon discovery that the policy was obtained through fraudulent statements, omissions or con- cealment of facts material to the acceptance of the risk or to the hazard assumed by us. 4. We will mail or deliver our notice to the first Named Insured's last mailing address known to us. Notice of cancellation will state the spe- cific reasons for cancellation. 5. Notice of cancellation will state the effective date of cancellation. The policy period will end on that date. 6. If this policy is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata and will be returned within 10 business days after the 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 cancella- tion. The cancellation will be effective even if we have not made or offered a refund. If notice is mailed, it will be by registered or first class mail. Proof of mailing will be suffi- cient proof of notice. B. The following are added and supersede any provi- sions to the contrary: 1. Nonrenewal If we decide not to renew this policy, we will mail or deliver written notice of nonrenewal, stating the specific reasons for nonrenewal, to the first Named Insured at least 60 days be- fore the expiration date of the policy. 2. Increase Of Premium If we increase your renewal premium, we will mail or deliver to the first Named Insured writ- ten notice of our intent to increase the pre- mium at least 30 days before the effective date of the premium increase. Any notice of nonrenewal or renewal premium in- crease will be mailed or delivered to the first Named Insured's last known address. If notice is mailed, it will be by registered or first class mail. Proof of mailing will be sufficient proof of notice. Page 2 of 2 Copyright, Insurance Services Office, Inc., 1997 IL 02 46 04 98 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 insurance: 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 contrac- tors are judicially determined to constitute a crime, actual malice, or gross negligence. Instruction to Policy Writers Attach the Pennsylvania Notice to all new and renewal certificates insuring risks located in Pennsylvania. IL 09 10 07 02 0 ISO Properties, Inc., 2001 Page 1 of 1 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION OF CERTAIN COMPUTER-RELATED LOSSES DUE TO DATES OR TIMES This endorsement modifies insurance provided under the following: BUSINESSOWNERS COVERAGE PART BOILER AND MACHINERY COVERAGE PART COMMERCIAL CRIME COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART A. We will not pay for loss ('loss") or damage caused directly or indirectly by the following. Such loss ('loss") or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss ('loss") or damage. 1. The failure, malfunction or inadequacy of: a. Any of the following, whether belonging to any insured or to others: (1) Computer hardware, including micro- processors; (2) Computer application software; (3) Computer operating systems and re- lated software; (4) Computer networks; (5) Microprocessors (computer chips) not part of any computer system; or (6) Any other computerized or electronic equipment or components; or b. Any other products, and any services, data or functions that directly or indirectly use or rely upon, in any manner, any of the items listed in Paragraph A.1.a. of this endorsement; 2. Any advice, consultation, design, evaluation, inspection, installation, maintenance, repair, replacement or supervision provided or done by you or for you to determine, rectify or test for, any potential or actual problems described in Paragraph A.1. of this endorsement. B. If an excluded Cause of Loss as described in Paragraph A. of this endorsement results: 1. In a Covered Cause of Loss under the Boiler And Machinery Coverage Part, the Commer- cial Crime Coverage Part, or the Commercial Inland Marine Coverage Part; or 2. Under the Businessowners Coverage Part: a. In a Covered Cause of Loss under the Businessowners Property Coverage Stan- dard Form, or in elevator collision result- ing from mechanical breakdown; b. In a "Specified Cause of Loss", under the Businessowners Property Coverage Spe- cial Form, in elevator collision resulting from mechanical breakdown, or from "Theft" of Covered Property, due to the inability to correctly recognize, process, distinguish, interpret or accept one or C. more dates or times. An example is the inabil- ity of computer software to recognize the year 2000. we will pay only for the loss ('loss") or damage caused by such Covered Cause of Loss, elevator collision, Covered Cause of Loss or "Theft". We will not pay for repair, replacement or modifi- cation of any items in Paragraphs A.1.a. and A.1.b. of this endorsement to correct any deficien- cies or change any features. IL T3 53 04 98 Includes Material Copyrighted by Page 1 of 1 Insurance Services Office POLICYHOLDER NOTICES TravdersPropertyCasualt j e . .Tray W,c uy J POLICYHOLDER NOTICES MASTER PAC POLICY ADVISORY NOTICE TO POLICYHOLDERS THIS IS NOT A POLICY ENDORSEMENT This is a summary of the major changes to the Master Pac policy. No coverage is provided by this summary nor can it be construed to replace any provision of your policy. You should read your policy and review your declara- tion page for complete information on the coverages you are provided. If there is any conflict between the policy and this summary, THE PROVISIONS OF THE POLICY SHALL PREVAIL. Contact your agent if you have any questions about your policy or if you desire any changes in your policy. Some of the language of the new policy has been restated and repunctuated for clarity and readability but with no change in coverage intent. The areas within the policy that broaden, reduce or clarify coverage are highlighted below. The material is organized by individual coverage forms and endorsements; however, not all coverage forms or endorsements are included in a particular policy. This summary does not include all possible endorsements that may be attached to your policy. A. BROADENED FEATURES OF THE STANDARD AND SPECIAL BUSINESSOWNERS PROP- ERTY COVERAGE FORM 1. Lawn maintenance and snow removal equip- ment and alarm systems have been added as personal property items used to maintain or service your buildings or structures. 2. The footage limitation on your building, per- sonal property, and business income cover- age (if applicable) has increased from 100 feet to 1,000 feet of the premises. 3. Your signs are now covered if they are within 1,000 feet of the premises. 4. Coverage Extension Appurtenant Buildings and Structures has been added for incidental buildings or structures, including Business Personal Property within these buildings or structures for 10% of the Limit of Insurance for Buildings and 10% of the Limit of Insur- ance for Business Personal Property shown in your Declarations, but not more than $50,000 in any one occurrence. 5. Increased Cost of Construction has been added as an Additional Coverage to provide limited coverage for the increased cost of complying with building codes following cov- ered damage to each described building in- sured, up to $5,000. 6. Under the Business Personal Property Off- Premises Extension of Coverage, transit cov- erage now applies to and from your described premises and while your property is at a fair, trade show or exhibition. The number of days we will cover your property while temporarily away from your premises has increased to 60 days. 7. The following changes were made to the Coverage Extension Newly Acquired or Con- structed Property: (a) Coverage is no longer dependent on having the building(s) insured; (b) Coverage has been expanded to include additions while being built, newly ac- quired premises including materials, equipment, supplies and temporary structures, on or within 1,000 feet of the premises and buildings you are required to insure under a written contract; (c) The restriction applicable to buildings, has been deleted: "intended for: use similar to that of the building described in the Declarations; or use as a warehouse for your Covered Property"; (d) We have added coverage for newly ac- quired business personal property at the described building insured under the pol- icy; (e) We have added coverage for business personal property at a newly constructed or acquired building at the insured loca- tion; and (f) The limit for business personal property under this Extension has increased from $100,000 to $250,000. 8. The Outdoor Property Extension has been revised to include "bridges". The $500 per PN T2 99 01 00 Page 1 of 7 tree, shrub or plant limitation has been elimi- nated. We have broadened the term lawns to include "including fairways, greens and tees". 9. The Legal Proceeding Exclusion has been deleted. 10. Coverage is now provided for Expediting Ex- penses up to $10,000 in any one occurrence. 11. The Exterior Building Glass Coverage Exten- sion has been revised to cover direct physical loss of or damage to glass, including glass breakage and damage to glass by chemicals accidentally or maliciously applied to glass. 12. If you are a tenant and Business Income is provided, we have expanded coverage for Business Income by defining your premises to include all areas within the buildings on the same parcel of land which provides essential services to conduct your operations as part of your premises. 13. Extended Business Income coverage has increased from 30 to 60 consecutive days. 14. The limit under the Business Income and Ex- tra Expense-Newly Acquired Extension of Coverage has increased from $100,000 to $250,000. 15. The deductible applicable to the Valuable Pa- pers Coverage Extension has been elimi- nated. 16. A Loss Payment condition stating that we may make a partial payment toward any claim to you at our option has been added. 17. Additional Coverage Preservation of Property has been revised to cover the cost to remove the property from the described premises. 18. The Claim Data Expense Extension of Cov- erage has been revised to include the costs of preparing income statements. 19. Under Property Not Covered, we have added an exception to back filling or filling to cover those costs made necessary due to repair or replacement of a building insured under this policy from a Covered Cause of Loss.. 20. A Coverage Extension has been added to provide limited coverage on Non-Owned De- tached Trailers for up to $5,000. B. BROADENED FEATURES OF THE STANDARD BUSINESSOWNERS PROPERTY COVERAGE FORM ONLY 1. Breakage of Glass has been added as an Additional Coverage. 2. Coverage for Collapse is now provided. C. BROADENED FEATURES OF THE SPECIAL BUSINESSOWNERS PROPERTY COVERAGE FORM ONLY 1. The limitation applicable to jewelry, watches, watch movements, jewels, precious and semi-precious stones, bullion, gold, silver, platinum and other precious alloys or metals has increased from $2,500 to $5,000. 2. The exclusion for loss caused by insects, birds, rodents or other animals has been re- vised to specify that it only applies in situa- tions where loss is caused by nesting or in- festation, or discharge or release of waste products or secretions, by insects, birds, ro- dents or other animals. 3. The Collapse Additional Coverage is broad- ened to include coverage for collapse of per- sonal property in the absence of building col- lapse, under certain conditions. D. BROADENED FEATURES BY CLASS OF BUSINESS 1. If you are an Apartment owner or a Condo- minium Association, personal property used for maintaining and servicing pools and other recreational facilities on the premises are now included as Building property. 2. If you are an office risk, your Business In- come coverage is extended to automatically include Telephone, FAX or Facsimile inter- ruption. A 24-hour deductible applies. 3. If you are a manufacturing risk, the following revisions have been made: (a) The theft limitation for patterns, dies, molds and forms has increased from $25,000 to $50,000; (b) If branded or labeled merchandise is damaged by a Covered Cause of Loss and we acquire the merchandise as sal- vage, we will pay up to $25,000 for the reasonable costs you incur to stamp such merchandise as salvage material or the costs to relabel the merchandise as long as the new labels comply with the law; (c) We will pay the reduction in value of the remaining parts of "stock" in process of manufacture when the reduction is caused by direct physical loss or damage from a Covered Cause of Loss to other parts of "stock" in process of manufac- turer up to $25,000 in any one occur- rence; Page 2 of 7 PN T2 99 01 00 (d) Your Business Personal Property is ex- tended to apply to samples of your stock in trade while in the custody of your sales representatives up to $25,000 in the custody of any one sales representative; and (e) Your Business Personal Property is ex- tended to apply to that property while temporarily on display to the public at a premises you do not regularly occupy up to $25,000. 4. If you are a wholesaler, the following revi- sions have been made: (a) We have increased the limit on Sales Representative's Samples to $25,000. (b) We have increased the limit on Brands and Labels to $25,000. E. CLARIFICATION OR PROCEDURAL CHANGES IN THE STANDARD AND SPECIAL BUSINESS- OWNERS PROPERTY COVERAGE FORM 1. Under Property Not Covered, the term "bulk- heads" has been added. 2. Under Property Not Covered, we have added to land, water and growing crops, "whether in its natural state or otherwise", and to growing crops "standing timber". 3. Under Property Not Covered, we have rear- ranged Outdoor Property for clarification. The words "satellite dishes" have been added to clarify that satellite dishes are considered to be antennas. 4. Under covered Building property, the para- graphs pertaining to fixtures, machinery, equipment and outdoor fixtures are rear- ranged for clarification. The phrase "perma- nently installed" has been revised to "perma- nently attached" and continues to be used in describing machinery and equipment covered as part of the Building. 5. Under the Additional Coverage, Pollutant Cleanup, loss or damage must now be cov- ered property rather than property. 6. Business Personal Property has been revised to clarify that "Money" and "Securities" are in- cluded. 7. Under the Loss Payment Loss Condition, lan- guage is added to state that the cost to repair, rebuild or replace does not include the in- creased cost attributable to enforcement of any ordinance or law regulating the construc- tion, use or repair of any property. 8. An explicit statement is added to clarify that Extended Business Income coverage applies only if the insured first sustains a Business Income Loss payable under the policy and a paragraph has been added to clarify that Ex- tended Business Income coverage does not cover reduced income due to unfavorable business conditions in the areas where the physical damage occurs. 9. Language is added to the "period of restora- tion" definition to clarify that an insured's re- sumption of operations at a new permanent location ends the "period of restoration". 10. Under the Loss Payment Condition for Busi- ness Income and Extra Expense, we have re- vised language to specify that the determina- tion of the Business Income loss does not in- clude any Net Income that would have been earned as a result of an increase in the vol- ume of business due to favorable business conditions caused by the impact of the Cov- ered Cause of Loss on customers or on other businesses. 11. The Duties in the Event of Loss or Damage Loss Condition has been revised to indicate that the insured must protect the property from any further damage, even if the cause of such damage would not be a covered cause of loss under the policy; and keep a record of all expenses incurred to protect the property, rather than only expenses related to tempo- rary and emergency repairs. Such expenses will be considered in the settlement of the claim. 12. Under the Mortgageholders Property Condi- tion, the term statement of loss is replaced with the term proof of loss. The term proof of loss more precisely conveys that the insured is required to provide substantiation of a loss. All references to mortgagee holder are re- vised to mortgageholder (one word). 13. Language is added to the Ordinance or Law Exclusion to clarify that it applies with respect to damaged and undamaged property. This exclusion applies whether the ordinance or law is enforced in the absence of a physical loss at the insured premises, or following a physical loss to insured property; and applies to all property in the event of a physical loss at the insureds premises. 14. The title of the "Off-Premises Services" ex- clusion is changed to "Utility Services" to more explicitly reflect the subject and the content of this exclusion. PIN T2 99 01 00 Page 3 of 7 15. Language has been added to the Definition of Water Damage to clarify that the covered cause of loss does not include discharge or leakage of water from a sump system. In ad- dition, the phrase "breaking or cracking" is re- vised to "breaking apart or cracking" for clari- fication. 16. All of the Additional Coverages and Exten- sions of Coverage have been alphabetized in order to more easily locate the coverages and limits. 17. Under the Business Personal Property Off- Premises Extension of Coverage, we have clarified that coverage also applies to such property while temporarily displayed at a premises you do not own or regularly occupy. 18. The language of the Water Exclusion is re- vised for clarification, to add reference to a sump, which is a type of drainage system, and to add the term overflow. 19. The definition of "securities" has been revised to clarify that lottery tickets held for sale are not securities and therefore, are considered covered property. 20. The coverage grant for Collapse has now been moved to the Exclusions section of the policy where coverage is restored when it re- sults from a number of other specified causes of loss. 21. A definition of "suspension" of operations has been added to clarify that a suspension of operations means a partial or complete ces- sation of your business activities. 22. The Debris Removal Additional Coverage has been revised to clarify the provisions and show examples governing the amount of cov- erage afforded. 23. The Civil Authority Additional Coverage has been revised to clarify that direct physical loss of or damage to property must be within the jurisdiction invoking the civil authority and that the loss or damage must be caused by or re- sulting from a Covered Cause of Loss. F. CLARIFICATION OR PROCEDURAL CHANGES IN THE SPECIAL BUSINESSOWNERS PROP- ERTY COVERAGE FORM ONLY sewage overflow occurs due to a blockage which occurs on the described premises." 2. The Additional Coverage Employee Dishon- esty has been revised to clarify that coverage applies anywhere within the coverage terri- tory. 3. The Money Orders and Counterfeit Paper Currency Coverage Extension has been re- vised to clarify that the money orders apply to any U.S. or Canadian post office or express money order, issued or claiming to have been issued by any post office or express com- pany. Good faith acceptance of any money order or counterfeit money must be in ex- change for merchandise, money or services or as part of a normal business transaction. G. CLARIFICATION OR PROCEDURAL CHANGES IN THE STANDARD BUSINESSOWNERS PROPERTY COVERAGE FORM ONLY 1. We have revised the Water Damage peril to clarify that coverage responds only to losses which involve the breaking apart or cracking of a plumbing, heating, air conditioning or other system or appliance, that is located on the described premises. We have clarified that roof drains, gutters, downspouts or simi- lar fixtures or equipment are not covered systems under this Named peril. H. CLARIFICATION OR PROCEDURAL CHANGES BY CLASS OF BUSINESS 1. If you are a condominium association, Busi- ness Income has been revised to clarify that "Maintenance Fees" are included. 2. If you a contractor, we have clarified under the Business Personal Property Off Premises Extension that your coverage also applies to your Business Personal Property at an in- stallation site. 1. RESTRICTIVE FEATURES OF THE STANDARD AND SPECIAL BUSINESSOWNERS PROP- ERTY COVERAGE FORM 1. The filling, reclaiming or restoring water; piers, pilings, wharves or docks; and tunnels, whether or not connected to buildings have been added as Property and Costs Not Cov- ered. 1. We have revised the phrase, "Water back up, 2. We have revised the definition of pollutants to other than from a septic tank or cesspool, include any unhealthful or hazardous building when the cause of the water back up origi- materials (including but not limited to asbes- nates on the premises" to "Except for septic tos and lead products or materials containing tank and cesspool systems, this exclusion lead). does not apply when the cause of water or Page 4 of 7 PIN T2 99 01 00 3. Additional Coverage Pollutant Cleanup and Removal has been revised so that the cover- age applies when the discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused by or results from a "specified causes of loss" and not a "Covered Cause of Loss". 4. If you have building coverage on your policy, the Exterior Building Glass deductible is now an unchangeable $250. 5. The Earth Movement Exclusion has been re- vised so that it applies to any earth move- ment, either natural or man-made. 6. We have added a new exclusion which ex- cludes neglect of an insured to use reason- able means to save and preserve property from further damage at and after the time of loss. 7. For insureds who are tenants the vacancy provisions will apply only when a tenants unit or suite is vacant (does not contain enough business personal property to conduct cus- tomary operations). In a multiple occupancy building, the condition of units other than the insured's unit will not be considered in deter- mining whether there is a condition of va- cancy. For insureds who are building owners, the vacancy provisions will apply unless at least 31% of its total square footage is rented or used by the building owner to conduct customary operations. 8. Coverage Extension Newly Acquired or Con- structed Property has been revised so that coverage for business personal property is only extended for the same type of property at a building you newly acquire at a location described in the Declaration or at any other location you acquire by purchase or lease. 9. Coverage is no longer provided for buildings or structures in the "state of imminent col- lapse" unless the "state of imminent collapse" is caused by one or more of the reasons listed in the coverage form. J. RESTRICTIVE FEATURES OF THE SPECIAL BUSINESSOWNERS PROPERTY COVERAGE FORM ONLY 1. The Limitation applicable to interior damage to any building or to personal property in the building has been revised to specify that we will not pay for loss to personal property in a building or structure caused by rain, snow, sleet, ice, sand or dust, unless the building or structure first sustains damage by a covered cause of loss, or unless loss results from thawing of snow, sleet or ice on the building or structure. (Note., This limitation is not appli- cable in FL, MA, ME, NH, NC, SC and RI). 2. Coverage no longer applies if mechanical breakdown results in a "specified causes of loss". However, we will pay for loss or dam- age if mechanical breakdown results in a fire or building glass breakage. 3. Forgery or Alteration Coverage, previously subject to the Business Personal Property Limit has been specifically added as an Addi- tional Coverage. The most we will pay is the limit for Business Personal Property stated in the Declarations or $250,000 (whichever is less). Depending on class of business, this limit may be reduced to $25,000. The limit will be the same as the Employee Dishonesty limit. 4. We have added leakage as an excluded cause of loss to personal property. K. RESTRICTIVE FEATURES BY CLASS OF BUSINESS 1. If you are a Condominium Association, we will cover fixtures, improvements and alterations that are a part of the building or structure and appliances contained within a unit, regardless of ownership, only if your Condominium As- sociation agreement requires you to insure it. Previously, this property contained within a unit was covered regardless of ownership. (Note: This restriction does not apply in FL and 1L). 2. If you are a Condominium Association or an Apartment risk previously written under the Select Pac program, the Limits of Insurance applicable to Newly Acquired or Constructed Property is reduced to $250,000 for Buildings. 3. If you are a florist, the spoilage coverage automatically afforded under your policy is $5,000. Higher limits are available. 4. If your policy has Utility Services - Power Failure or Utility Services - Telephone, Fax or Facsimile coverage, we will pay the actual loss sustained from the initial time of service failure at your described premises but only when the service interruption at your de- scribed premises exceeds 24 hours immedi- ately following the direct physical loss or damage. PN T2 99 01 00 Page 5 of 7 OPTIONAL COVERAGES L. ORDINANCE OR LAW CLARIFICATION OF COVERAGE With respect to Coverage C, language is added to clarify that if relocation is required by ordinance or law, the increased cost of construction means the increased cost of constructing a building(s) at the new premises, subject to the Coverage C Limit of Insurance. REDUCTION OF COVERAGE Coverage is reduced by the addition of an exclu- sion which precludes coverage for pre-existing violations, where an insured was required to comply with an ordinance or law prior to loss, but violated such requirement. M POWER PAC/POWER PAC PLUS BROADENING OF COVERAGE 1. We have increased the most we will pay for Utility Services - Direct Damage from $1,000 to $2,500. 2. We have increased the most we will pay for Utility Services - Time Element from $1,000 to $2,500. Additionally,. the hour deductible has been reduced from 48 consecutive hours to 24 consecutive hours. 3.. We have increased the most we will pay for your Newly Acquired or Constructed Building, Personal Property and Business Income (when Business Income is included) and Ex- tra Expense from $250,000 to $500,000. 4. We have increased the limit on Claim Data Expense from $1,000 to $5,000. 5. We have increased the limit on Business In- come (when Business Income is included) from Dependent Properties from $10,000 to $25,000. 6. We have increased the limit on Ordinance or Law - Increased "Period of Restoration" from $10,000 to $25,000 when Business Income is included. REDUCTION OF COVERAGE 1. A 24 hour deductible has been added to the Additional Coverage - Business Income from Dependent Properties. N. POWER PAC PLUS ADDITIONAL BROADENING OF COVERAGE 1. We have added Sales Representative's Sam- ples as an Extension of Coverage for $25,000. 2. We have added coverage for your Business Personal Property at Exhibitions for $25,000 and $10,000 in transit. 3. The theft limitation for all patterns, dies and molds has been changed to provide an addi- tional $50,000. 0. BUSINESS INCOME FROM DEPENDENT REDUCTION OF COVERAGE Coverage now begins 24 hours after the time of direct physical loss or damage caused by or re- sulting from any Covered Cause of Loss at the premises of the "dependent property". P. SPOILAGE COVERAGE BROADENING OF COVERAGE Spoilage coverage has been broadened by in- cluding as Additional Coverages, your expenses to clean up and dispose of spoiled Covered Prop- erty and any reasonable expenses you incur to prevent or reduce loss or damage to the extent that such loss or damage is reduced. Coverage for these expenses is included within the Limit of Insurance for Spoilage. The deductible for spoilage will be separate from the policy deductible. A $250 mandatory deducti- ble will apply with higher deductible options avail- able. Q. BUILDING OWNERS AMENDATORY BROADENING OF COVERAGE 7. We have added Brands and Labels as an Additional Coverage for $25,000 in any one occurrence. 8. We have increased the limit on Ordinance or Law - Increased Cost of Construction or Re- pair from $10,000 to $25,000. 9. Business Computer has been broadened to include mechanical breakdown as a Covered Cause of Loss. Your Business Income coverage has been broadened by extending the period of restoration to include any increased time necessary to com- ply with existing building laws regulating con- struction, repair, or tearing down of property. The most we will pay under this additional Coverage is 10% of the Building Limit of insurance or $100,000 whichever is less. PN T2 99 01 00 Page 6 of 7 R. UTILITY SERVICES-TIME ELEMENT REDUCTION OF COVERAGE Coverage now begins 24 hours after the time of direct physical loss or damage. S. SEWER OR DRAIN BACKUP REDUCTION IN COVERAGE This optional coverage has been revised to pro- vide a limit of $25,000. Coverage no longer fol- lows the limit of insurance for building and/or Business Personal Property. Higher limits of $50,000 and $100,000 are optionally available. T. VALUABLE PAPERS BROADENING OF COVERAGE The Limit of Insurance for valuable papers not at the described premises has been increased to $5,000. U. EATING ESTABLISHMENT ENDORSEMENT CLARIFICATION The Water Damage Extension has been revised to clarify that Business Income or Extra Expense does not apply to this Additional Coverage Exten- sion. V. EARTHQUAKE BROADENING/REDUCTION IN COVERAGE The Earthquake deductible has changed from a dollar deductible to a percentage deductible. The Earthquake deductible will now be subject to a Policy Occurrence Limit and an Annual Aggregate Limit. For the newly Acquired or Constructed Property and the Business Income and Extra Ex- pense-Newly Acquired Locations Extensions of Coverage, the most we will pay for Earthquake is $100,000 in any one occurrence and in any one policy year. PN T2 99 01 00 Page 7 of 7 Laserfiche WebLink 11128/.2005 Page 2 of 3 a oqQ 193 TO: COURTOFCOWMON PLEAS, CUMBERLAND COUNTY, PA. NO: 05.5991 FROM: WPCI FASTENERS, INCA $c AS DEFENSE TO SAID SUIT BROUGHT UPON OUR COMPANY, WE H) GIVING NOTICETO TRAVELERS INSURANCE THAT WE ARE WELL, I TO SEE THE FINAL AUDIT FOR THE POLICY PERIOD AT TIME OF CA NOTING TH15 FOLLOWING A. CRITERIA IN THE INCREASE AT CANCELLATION B, METHOD AND PORMUL.A USED IN ATTAINING SAID NUMBER C. LOSS RUNS FOR SAID POLICY PERIOD WEA'1' WPG. HAD PAID ON TIME EACH AND BVERY INVOICE FRDN AND DO RESERVE THE RIGHTTO SEE1NFORMATIONONTHEJUST] FINAI. AUDIT BILL WE AT WPO FASTENERS HAVE. AND WILL ALWI WITH COMPLETE CANDOR AND HONESTY AND EXPECT THE SAME WE BI LIEVETHAT THE TRAVELERS INSURANCE COMPANY IIAS A' OUR HNAL WDRKEAS COMP AUDIT BASED ON INCREASED SALARI VOLUM Ii, BOTH OF WHICH COST TRAVELERS NO ADDITIONAL MOI WF ALSO ARE A BUSINESS ATIEMPT]N0 '1*0 MAKE A PROFIT ANO L UPON INSURANCE COMPANIES WHO TAKE ADVANTAGE OF THEIR SINCERELY. DAVE OFTEN GENERAL MANAGER WPCr FASTRNRS, INC http://records.cepa.net/weblink_ext'doeview.aspx?id=57731 1/20/2006 ,; ?, ,_, o -:, ?+ ;, Cii 7 ?, 6:? _._ .c? c.,> ..i r., ?? :b < COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW THE TRAVELERS INDEMNITY COMPANY OF AMERICA and Plaintiff VS. WPG FASTENERS, INC. No. 05-5991 Civil CIVIL ACTION Defendant(s) CERTIFICATE OF SERVICE The undersigned certifies that a true and correct copy of Plaintiff's Motion for Judgment on the Pleading and Plaintiff's Brief in Support of Motion for Judgment on the Pleadings was served via first class mail, postage prepaid on February 2, 2006: WPG Fasteners, Inc. 3617 B, Simpson Ferry Road CAMP HILL PA 17011-6407 AMATO AND ASSOCIATES, P.C. By: xlf-?7 ??? "Ronald Amato, Esq., Atty ID #32323 Michael J. Kennedy, Esq., Atty ID #72412 Attorneys for Plaintiff 107 North Commerce Way Bethlehem, PA 18017 (610) 866-0400 f" r ?. = FY1 1l C PRAECIPE FOR LISTING CASE FOR ARGUMENT (Must be typewritten and submitted in duplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Please list the within matter for the next Argument Court. CAPTION OF CASE (entire caption must be stated in full) THE TRAVELERS INDEMNITY COMPANY OF AMERICA and THE TRAVELERS INDEMNITY COMPANY OF ILLINOIS (Plaintiff) Vs. WPG FASTENERS, INC. (Defendant) No. 05-5991 Civil Term L State matter to be argued (i.e., plaintiff's motion for new trial, defendant's demurrer to complaint, etc.): PLAINTIFF'S MOTION FOR JUDGMENT ON THE PLEADINGS. 2. Identify counsel who will argue cases: (a) for plaintiff: Michael J. Kennedy, Esquire (Name and Address) 107 North Commerce Way, Bethlehem PA 18017 (b) for defendant: Pro Se (Name and Address) 3617 B Simpson Ferry Road, Camp Hill PA 17011-6407 3. I will notify all parties in writing within two days that this case has been listed for argument. 4. Argument Court Date: March 29, 2006 vvw Ronald Amato, E Print your name Date: February 14, 2006 Attomeyfor Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW THE TRAVELERS INDEMNITY COMPANY OF AMERICA and Plaintiff VS. WPG FASTENERS, INC. Defendant(s) No. 05-5991 Civil CIVIL ACTION CERTIFICATE OF SERVICE The undersigned certifies that a true and correct copy of Plaintiff's Praecipe for Listing Case for Argument was served via first class mail, postage prepaid on February 14, 2006: WPG Fasteners, Inc. 3617 B, Simpson Ferry Road CAMP HILL PA 17011-6407 Ronald Amat at, Esq., Atty ID #32323 Michael J. Kennedy, Esq., Atty ID #72412 Attorneys for Plaintiff 107 North Commerce Way Bethlehem, PA 18017 (6101 866-0400 AMATO AND ASSOC.C. By: o r-? -Il 'T1 -r r?l . ?: TI , ?1 .. C ? {? N t f? ;J Ci'"i #Il THE TRAVELERS INDEMNITY COMPANY OF AMERICA AND THE TRAVELERS INDEMNITY COMPANY OF ILLINOIS V. WPG FASTENERS, INC IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2005 - 5991 CIVIL TERM CIVIL ACTION-LAW IN RE: DEFENDANT'S MOTION FOR JUDGMENT ON THE PLEADINGS BEFORE BAYLEY, GUIDO, JJ. ORDER OF COURT AND NOW, this 5TH day of APRIL, 2006, upon consideration of Plaintiff's Motion for Judgment on the Pleadings, and the Defendant having failed to respond thereto, the motion is GRANTED. The prothonotary is directed to enter judgment in favor of Plaintiff and against the Defendant in the amount of $10,982.88 plus costs. Edward E. Guido, J. Xchael J. Kennedy, Esquire For the Plaintiff , PG Fasteners, Inc. 3617 B Simpson Ferry Road Camp Hill, Pa. 17011-6407 sld C7 G? 0? ?a ? I I - I!! - - IN THE COURT OF COMMON PLEAS OF CUMBERLAND CIVIL ACTION - LAW 1 THE TRAVELERS INDEMNITY ` COMPANY OF AMERICA and THE TRAVELERS INDEMNITY COMPANY FO ILLINOIS Plaintiff VS. WPG FASTENERS, INC. Defendant (XX) NTY, PENNSYLVANIA No. 05-59911 Civil CIVIL NOTICE OF JUDGMENT NOTICE IS HEREBY GIVEN THAT A JUDGMENT IN THE ABOVE CAPTIONED MATTER HAS BEEN ENTERED AGAINST THE ABOVE-NA ED DEFENDANT(s) IN THE AMOUNT OF $10,982.88 ON hj&L? 3 /, 2006. ( ) A COPY OF ALL DOCUMENTS FILED WITH THE PROTHONOTARY OF CUMBERLAND COUNTY IN SUPPORT OF THE WITHIN JUDGMENT IS/ARE ENCLOSED. PROTHONOTARY - CUMBERLAND COUNTY If you have any questions concerning the above, please c ntact the undersigned. AMATO AND ASSOCI TES, P By: Ronald Amato, sq., Atty ID #32323 Michael J. Kenn dy, Esq., Atty ID #72412 Attorneys for PI intiff 107 North Com merce Way Bethlehem, PA 8017 (610) 866-040 A DEBT COLLEC TION LAW FIRM IN THE COURT OF COMMON PLEAS OF CUMBERLAND CIVIL ACTION - LAW t THE TRAVELERS INDEMNITY COMPANY OF AMERICA and THE TRAVELERS INDEMNITY COMPANY OF ILLINOIS Plaintiff VS. WPG FASTENERS, INC. Defendant ?NTY, PENNSYLVANIA No. 05-59911 Civil CIVIL PRAECIPE FOR JUDGMENT TO THE PROTHONOTARY, CUMBERLAND COUNTY: Kindly enter judgment in accordance with the Order of of Plaintiff and against the above-named defendant only and Debt Total I CERTIFY THAT THE FOREGOING ASSESSMENT OF DAMi AMOUNTS ALLEGED TO BE DUE IN THE COMPLAINT AND IS CERTAIN FROM THE COMPLAINT. Dated: May 22, 2006 AMATO AND By: 2042193 Ronald Amato, Michael J. Kent Attorneys for P 107 North Corr Bethlehem, PA (610) 866-0401 A DEBT COLLE rt of April 5, 2006 in favor ss damages as follows: $10,982.88 $10,982.88 ES IS FOR SPECIFIED \LCULABLE AS A SUM .C. Atty ID #32323 Esq., Atty ID #72412 8017 Way ON LAW FIRM IN THE COURT OF COMMON PLEAS OF CUMBERLAND CIVIL ACTION - LAW THE TRAVELERS INDEMNITY COMPANY OF AMERICA and THE TRAVELERS INDEMNITY COMPANY OF ILLINOIS Plaintiff VS. WPG FASTENERS, INC. : No. 05-5991 CIVIL Defendant CERTIFICATION OF ADDRESSES I do certify that the precise last known address of the One Hartford Square Hartford CT 06183 I do certify that the precise last known address of the 3617 B, Simpson Ferry Road CAMP HILL PA 17011-6407 , PENNSYLVANIA Civil in named plaintiff is: named defendant is: AMATO AND ASSOCItTES, P.C. By: Ronald Amato, Michael J. Kenr Attorneys for PI 107 North Com Bethlehem, PA (610) 866-040( A DEBT COLLET ., Atty ID #32323 Esq., Atty ID #72412 fierce Way 8017 ON LAW FIRM ?' ao?a?93 C 1Z THE TRAVELERS INDEMNITY : IN THE COURT OF COMMON PLEAS OF COMPANY OF AMERICA AND : CUMBERLAND COUNTY, ENNSYLVANIA THE TRAVELERS INDEMNITY : COMPANY OF ILLINOIS : NO. 2005 - 5991 CNIL TE V. WPG FASTENERS, INC. : CIVIL ACTION - LAW BEFORE BAYLEY, GUIDO. JJ. ORDER OF COURT AND NOW, this ST" day of APRIL, 2006, upon considerati n of Plaintiff s Motion for Judgment on the Pleadings, and the Defendant having f led to respond thereto, the motion is GRANTED. The prothonotary is directed to nter judgment in favor of Plaintiff and against the Defendant in the amount of $ I0,9 .88 plus costs. I E. Guido, J. Michael J. Kennedy, Esquire For the Plaintiff WPG Fasteners, Inc. 3617 B Simpson Ferry Road Camp Hill, Pa. 17011-6407 :sld 7-1 1 1 V+ 6R c ? G - IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW THE TRAVELERS INDEMNITY COMPANY OF AMERICA and Plaintiff VS. WPG FASTENERS, INC. Defendant(s) Fulton Bank Garnishee : Total $ 11,203.44 To the Prothonotary - Cumberland County: ISSUE A WRIT OF EXECUTION AND ATTACHMENT IN THE ABOVE MATTER. PRAECIPE WRIT OF EXECUTION Issue a writ of execution in the above matter to the Sheriff of Cumberland County, for debt, interest and costs upon the following described property of the defendant(s) All cash on hand or in the possession of the defendant(s), accounts receivables furniture furnishings equipment, inventory, tools, electronic equipment vehicles any and all other personal property belonging to the above-named defendant(s). PRAECIPE FOR WRIT OF ATTACHMENT EXECUTION Issue writ of attachment to the Sheriff of Cumberland County, for debt, interest and costs, as above, directing attachment against the above named garnishee(s) for the following property: All property of the above-named defendant(s) including without limitation all savings and checking accounts, certificates of deposit money market accounts deposits and all debts and other property and/or obligations owing from the above-named garnishee to the above named defendant(s), including but not limited to account #361 975 3756, and any account owned solely or in part by the above-named defendant(s) which are in the possession custody and/or control of said garnishee(s). AMATO AND ASSOCIAT S, P.C. By: R ald Ama , Esq., Atty ID #32323 Michael J. Kennedy, Esq., Atty ID #72412 Attorneys for Plaintiff 107 North Commerce Way Bethlehem, PA 18017 (610) 866-0400 A DEBT COLLECTION LAW FIRM CIVIL ACTION NO. 05-5991 Civil Amount Due $ 10,982.88 Interest $ 220.56 Payments $ 0.00 Costs $ Poundage $ Attorney File#: 2042193 C G ? ? 1 C'J -r? °o - 7 IVR1 ?; p5 rz t C ? IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW THE TRAVELERS INDEMNITY COMPANY OF AMERICA and Plaintiff No. 05-5991 Civil VS. WPG FASTENERS, INC. CIVIL ACTION Defendant(s) CERTIFICATION OF DEFENDANT(S) ADDRESS FOR SERVICE I do certify that the precise last known address of the within named defendant(s) is the address provided below, and request that the Sheriff serve the above named defendant(s) at: 3617 B, Simpson Ferry Road CAMP HILL PA 17011-6407 Dated: September 29, 2006 AMATO AND ASSOCIATES, P.C. By: onald Amato, Esq., Atty ID #32323 Michael J. Kennedy, Esq., Atty ID #72412 Attorneys for Plaintiff 107 North Commerce Way Bethlehem, PA 18017 (610) 866-0400 A DEBT COLLECTION LAW FIRM Attorney File #: 2042193 C rv c O ' C/5 ? 0 i WRIT OF EXECUTION and/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) COUNTY OF CUMBERLAND) NO 05-5991 Civil CIVIL ACTION - LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due THE TRAVELERS INDEMNITY COMPANY OF AMERICA, Plaintiff (s) From WPG FASTENERS, INC., 3617 B, SIMPSON FERRY ROAD, CAMP HILL, PA 17011- 6407 (1) You are directed to levy upon the property of the defendant (s)and to sell ALL CASH ON HAND OR IN THE POSSESSION OF DEFENDANT(S), ACCOUNTS RECEIVABLES, FURNITURE, FURNISHINGS, EQUIPMENT, INVENTORY, TOOLS, ELECTRONIC EQUIPMENT, VEHICLES, ANY AND ALL OTHER PERSONAL PROPERTY BELONGING TO THE ABOVE-NAMED DEFENDANT(S). (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of FULTON BANK, 599 N. 12TH STREET, LEMOYNE, PA 17043 - ALL PROPERTY OF THE ABOVE-NAMED DEFENDANT(S), INCLUDING, WITHOUT LIMITATION, ALL SAVINGS AND CHECKING ACCOUNTS, CERTIFICATES OF DEPOSIT, MONEY MARKET ACCOUNTS, DEPOSITS AND ALL DEBTS AND OTHER PROPERTY AND/OR OBLIGATIONS OWING FROM THE ABOVE-NAMED GARNISHEE TO THE ABOVE NAMED DEFENDANT(S), INCLUDING BUT NOT LIMITED TO ACCOUNT #361975 3756, AND ANY ACCOUNT OWNED SOLELY OR IN PART BY THE ABOVE-NAMED DEFENDANT(S), WHICH ARE IN THE POSSESSION, CUSTODY AND/OR CONTROL OF SAID GARNISHEE(S). GARNISHEE(S) as follows: and to notify the garnishee(s) that: (a) an attachment has been issued; (b) the garnishee(s) is enjoined from paying any debt to or for the account of the defendant (s) and from delivering any property of the defendant (s) or otherwise disposing thereof; (3) If property of the defendant(s) not levied upon an subject to attachment is found in the possession of anyone other than a named garnishee, you are directed to notify him/her that he/she has been added as a garnishee and is enjoined as above stated. Amount Due $10,982.88 Interest $220.56 Atty's Comm % Atty Paid $123.94 Plaintiff Paid Date: OCTOBER 19, 2006 L.L. $.50 Due Prothy $1.00 Other Costs Curtis . Long, notary (Seal) By: Deputy REQUESTING PARTY: Name RONALD AMATO, ESQUIRE 'Address: 107 NORTH COMMERCE WAY BETHLEHEM, PA 18017 Attorney for: PLAINTIFF Telephone: 610-866-0400 Supreme Court ID No. 32323 1 MOGEL, SPEIDEL, BOBB & KERSHNER, P.C. A PROFESSIONAL CORPORATION BY: Frederick R. Mogel, Esquire Identification No. 32214 520 Walnut Street, P.O. Box 8581 Reading, PA 19603-8581 610-376-1515 Attorney for: Garnishee THE TRAVELERS INDEMNITY COMPANY OF AMERICA Plaintiff -vs- WPG FASTENERS, INC., Defendant and FULTON BANK, Garnishee : IN THE COURT OF COMMON PLEAS : OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION -LAW NO. 05-5991 NOTICE TO: WPG FASTENERS, INC. YOU ARE HEREBY NOTIFIED TO FILE A WRITTEN RESPONSE TO THE ENCLOSED NEW MATTER WITHIN TWENTY (20) DAYS FROM SERVICE HEREOF OR A JUDGMENT MAY BE ENTERED AGAINST YOU. MOGEL, SPEIDEL, BOBB & KERSHNER By. ? rY4irvc,C IZC ??? rederick R. Mogel, Esquire Attorney I.D. No. 32214 520 Walnut Street, P.O. Box 8581 Reading, PA 19603-8581 (610) 376-1515 Attorneys for Garnishee MOGEL, SPEIDEL, BOBB & KERSHNER, P.C. A PROFESSIONAL CORPORATION BY: Frederick R. Mogel, Esquire Identification No. 32214 520 Walnut Street, P.O. Box 8581 Reading, PA 19603-8581 610-376-1515 Attorney for: Garnishee THE TRAVELERS INDEMNITY : IN THE COURT OF COMMON PLEAS COMPANY OF AMERICA : OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff : CIVIL ACTION -LAW _Vs_ NO. 05-5991 WPG FASTENERS, INC., Defendant and FULTON BANK, Garnishee ANSWER AND NEW MATTER OF FULTON BANK, GARNISHEE TO INTERROGATORIES IN ATTACHMENT BY THE PLAINTIFF 1. No. 2. No. 3. No. 4. No. 5. No. 6. No. 7. Yes. 8. (a) Demand Deposit Account No. 3619-75375 (b) Balance as of November 6, 2006 in the amount of $16,847.89. NEW MATTER 9. Garnishee, Fulton Bank, is entitled to reasonable counsel fees as part of taxable costs in this matter pursuant to 41 Pa. C.S. §2503(3). 10. Reasonable counsel fees on behalf of the Garnishee, Fulton Bank, are Two Hundred Dollars ($200.00) for the review of the records, consultations with Plaintiff's counsel, consultations with Garnishee, review of the pleadings and execution of documents and filing these Answers to Interrogatories. 11. Garnishee, Fulton Bank, is entitled to its reasonable attorney's fees as set forth above pursuant to law and Garnishee, Fulton Bank's contract with the Defendant, which fees shall be a setoff against the debt owing to Defendant, which Plaintiff has garnished. WHEREFORE, Garnishee, Fulton Bank, hereby demands judgment against the Plaintiff in the amount of Two Hundred Dollars ($200.00) as reasonable counsel fees as provided for by law. MOGEL, SPEIDEL, BOBB & KERSHNER Frederick R. Mogel, Esquire Identification No. 32214 520, alnut Street, P.O. Box 8581 Reading, PA 19603-8581 (610) 376-1515 Attorney for Garnishee, Fulton Bank -2- VERIFICATION Frederick R. Mogel, Esquire, hereby verifies that he is the attorney for Fulton Bank, Garnishee, in the instant action, and that as such counsel, he is authorized to make, and possesses sufficient information and belief to make, the within verification on its behalf; and further, that the facts set forth in the foregoing Answers to Interrogatories are true and correct to the best of his information and belief. This verification is made pursuant to Pennsylvania Rule of Civil Procedure No. 1024(c), inasmuch as verification of the Garnishee, on whose behalf the foregoing pleading is filed, cannot be obtained within the time allowed for filing the pleading. The undersigned's information regarding the facts set forth in the foregoing pleading has been derived from a review of pleadings, correspondence and other documents in the attorneys' files, as well as from conversations with the Garnishee concerning the subject matter of the instant action. This verification is made subject to the penalties set forth in 18 Pa. C.S.A. §4904, relating to unsworn falsifications to authorities. n Lt1,eAeLt,____ 0 2 Predderick R. Mogel, Esquire Dated: December 15, 2006 -3- `i • a. .1 ? IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW THE TRAVELERS INDEMNITY COMPANY OF AMERICA and Plaintiff VS. WPG FASTENERS, INC. Defendant : Fulton Bank Garnishee No. 05-5991 Civil CIVIL ACTION PRAECIPE FOR JUDGMENT AGAINST GARNISHEE TO THE PROTHONOTARY, CUMBERLAND COUNTY: Kindly enter judgme r of the Plaintiff and against the above-named Garnishee, in the amount of $ , a? ' dmitte m he answer to interrogatories to be in the garnishee's possession, together with statutory interest and costs. The amount of the judgment of the Plaintiff against the Defendant is $10,982.88. Dated: 2007 AMATO AND ASSOCIATES, P.C. By: /i'_ Ronald Amato, Esq., Atty ID #32323 Michael J. Kennedy, Esq., Atty ID #72412 Attorneys for Plaintiff 107 North Commerce Way Bethlehem, PA 18017 (610) 866-0400 A DEBT COLLECTION LAW FIRM IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW THE TRAVELERS INDEMNITY COMPANY OF AMERICA and Plaintiff VS. WPG FASTENERS, INC. Defendant Fulton Bank Garnishee No. 05-5991 Civil CIVIL ACTION CERTIFICATION OF ADDRESSES I do certify that the precise last known address of the within named plaintiff is: c/o Amato and Associates, P.C. 107 North Commerce Way Bethlehem PA 18017 I do certify that the precise last known address of the within named defendant is: 3617 B, Simpson Ferry Road CAMP HILL PA 17011-6407 I do certify that the precise last known address of the within named garnishee is: 599 N. 12th Street Lemoyne PA 17043 AMATO AND ASSO IATES C. By: Ronald Amato, Esq., Atty ID #32323 Michael J. Kennedy, Esq., Atty ID #72412 Attorneys for Plaintiff 107 North Commerce Way Bethlehem, PA 18017 (610) 866-0400 A DEBT COLLECTION LAW FIRM 7J w 0 'V V ? t IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW THE TRAVELERS INDEMNITY COMPANY OF AMERICA and Plaintiff No. 05-5991 Civil VS. WPG FASTENERS, INC. CIVIL ACTION Defendant Fulton Bank Garnishee NOTICE OF JUDGMENT AGAINST GARNISHEE (XX) NOTICE IS HEREBY GIVEN THAT A JUDGMENT IN THE ABOVE CAPTIONED MATTER HAS BEEN ENTERED AGAINST THE ABOVE NA D GARNISHEE IN THE AMOUNT OF $ ON )Z6 , 9 2007. ( ) A COPY OF ALL DOCUMENTS FILED WITH THE PROTHONOTARY IN SUPPORT OF THE WITHIN JUDGMENT IS/ARE ENCLOSED. PROTHO OTARY - C BERLAND COUNTY Per: If you have any questions concerning the above, please contact the undersigned. AMATO AND ASSOCIATES, P.C. BY: 'e'l Ronald Amato, Esq., Atty ID #32323 Michael J. Kennedy, Esq., Atty ID #72412 Attorneys for Plaintiff 107 North Commerce Way Bethlehem, PA 18017 (610) 866-0400 A DEBT COLLECTION LAW FIRM COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW THE TRAVELERS INDEMNITY COMPANY OF AMERICA and Plaintiff No. 05-5991 Civil VS. WPG FASTENERS, INC. CIVIL ACTION Defendant(s) Fulton Bank Garnishee PRAECIPE TO SATISFY AGAINST GARNISHEE TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Please satisfy the judgment entered against Fulton Bank, Garnishee, ONLY in the above- captioned matter. AMATO AND ASSOCIATES, P.C. By: Ronald Amato, Esq., Atty ID #32323 Michael J. Kennedy, Esq., Atty ID #72412 Attorneys for Plaintiff 107 North Commerce Way Bethlehem, PA 18017 (610) 866-0400 A DEBT COLLECTION LAW FIRM (z 44 50 ra rr?r?i IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW THE TRAVELERS INDEMNITY COMPANY OF AMERICA and : Plaintiff No. 05-5991 Civil vs. WPG FASTENERS, INC. CIVIL ACTION Defendant(s) PRAECIPE TO SATISFY JUDGMENT TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Please satisfy the judgment entered in the above-captioned case. SO CES, P.C. AMATO ANT By: &Ald Amato, Esq., Atty ID #32323 K/lichael J. Kennedy, Esq., Atty ID #72412 Attorneys for Plaintiff 107 North Commerce Way Bethlehem, PA 18017 (610) 866-0400 A DEBT COLLECTION LAW FIRM C°? ? ?_ `-- ?? ; f ? ?i , ??, (,2 e ? ?--f "'? ? '.-, " ?ii 1 _°;? ? 3 R. Thomas Kline, Sheriff, who being duly sworn according to law, states this writ is returned STAYED. Sheriff's Costs: Advance Costs: 335.24 Sheriffs Costs: 335.24 Docketing 18.00 $ 000.00 Poundage 237.14 Advertising Law Library .50 Prothonotary 1.00 Refunded to Atty on 03/23/07 Mileage 9.60 Surcharge 40.00 Levy 20.00 Certified Mail Post Pone Sale Garnishee 9.00 Postage /? p?6 t TOTAL $ 335.24 / o Answers; R. Tomas ?K 1 en By Claudia A. Brewbaker G U, ?o l•? ? ?81?3 WRIT OF EXECUTION and/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) COUNTY" OF CUMBERLAND) NO 05-5991 Civil CIVIL ACTION - LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due THE TRAVELERS INDEMNITY COMPANY OF AMERICA, Plaintiff (s) From WPG FASTENERS, INC., 3617 B, SIMPSON FERRY ROAD, CAMP HILL, PA 17011- 6407 (1) You are directed to levy upon the property of the defendant (s)and to sell ALL CASH ON HAND OR IN THE POSSESSION OF DEFENDANT(S), ACCOUNTS RECEIVABLES, FURNITURE, FURNISHINGS, EQUIPMENT, INVENTORY, TOOLS, ELECTRONIC EQUIPMENT, VEHICLES, ANY AND ALL OTHER PERSONAL PROPERTY BELONGING TO THE ABOVE-NAMED DEFENDANT(S). (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of FULTON BANK, 599 N. 12 T" STREET, LEMOYNE, PA 17043 - ALL PROPERTY OF THE ABOVE-NAMED DEFENDANT(S), INCLUDING, WITHOUT LIMITATION, ALL SAVINGS AND CHECKING ACCOUNTS, CERTIFICATES OF DEPOSIT, MONEY MARKET ACCOUNTS, DEPOSITS AND ALL DEBTS AND OTHER PROPERTY AND/OR OBLIGATIONS OWING FROM THE ABOVE-NAMED GARNISHEE TO THE ABOVE NAMED DEFENDANT(S), INCLUDING BUT NOT LIMITED TO ACCOUNT #361975 3756, AND ANY ACCOUNT OWNED SOLELY OR IN PART BY THE ABOVE-NAMED DEFENDANT(S), WHICH ARE IN THE POSSESSION, CUSTODY AND/OR CONTROL OF SAID GARNISHEE(S). GARNISHEE(S) as follows: and to notify the garnishee(s) that: (a) an attachment has been issued; (b) the garnishee(s) is enjoined from paying any debt to or for the account of the defendant (s) and from delivering any property of the defendant (s) or otherwise disposing thereof; (3) If property of the defendant(s) not levied upon an subject to attachment is found in the possession of anyone other than a named garnishee, you are directed to notify him/her that he/she has been added as a garnishee and is enjoined as above stated. Amount Due $10,982.88 Interest $220.56 Atty's Comm % Arty Paid $123.94 Plaintiff Paid Date: OCTOBER 19, 2006 L.L. $.50 Due Prothy $1.00 Other Costs Curtis R. ong, on tary (Seal) By: TRUE COPY FROM RECORD Tl?' . °l1?D $et111y 1qr W the I r; ' adisle, Pa. Deputy SHERIFF'S RETURN - GARNISHEE CASE NO: 2005-05991 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND TRAVELERS INDEMNITY COMPANY VS WPG FASTENERS INC And now WILLIAM CLINE ,Sheriff or Deputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at 0003:49 Hours, on the 2nd day of January , 2006, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT WPG FASTENERS INC hands, possession, or control of the within named Garnishee 'P LTON BANK 599 N. 12TH ST LEMOYNE, PA 17043 Cumberland County, Pennsylvania, by handing to . in the MARY SIGNOR (TELLER) personally three copies of interogatories together with 3 true and attested copies of the within WRIT OF EXECUTION the contents there of known to Her . and made Sheriff's Costs: So answe Docketing .00 Service .00 Affidavit .00 R. Thomas Kline Surcharge .00 Sheriff of Cumberland County .00 nn 0 0 11/03/2007 Sworn and Subscribed to before me this day of By Deputy Sheriff A.D