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HomeMy WebLinkAbout06-2066MEMBERS 1" FEDERAL CREDIT UNION PLAINTIFF Vs. CANDY J. BAER and DARRYL LEE BAER DEFENDANTS IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO.: Oto -,20U CIVIL ACTION - LAW NOTICE TO DEFEND AND CLAIM RIGHTS THIS LAW OFFICE IS A DEBT COLLECTOR AND WE ARE ATTEMPTIING TO COLLECT A DEBT OWED TO OUR CLIENT. ANY INFORMATION OBTAINED FROM YOU WILL BE USED FOR THE PURPOSE OF COLLECTING THE DEBT. 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 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 claims or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 2 LIBERTY AVENUE CARLISLE, PA 17013 (717) 249-3166 OR (800) 990-9108 MEMBERS 1sT FEDERAL IN THE COURT OF COMMON PLEAS CREDIT UNION CUMBERLAND COUNTY, PLAINTIFF PENNSYLVANIA Vs. : NO.: CANDY J. BAER and DARRYL LEE BAER DEFENDANTS : CIVIL ACTION - LAW NOTICIA Le ban demandado a usted en la corte. Si usted guiere defenderse de estas demandas expuestas en las paginas siguientes, usted tiene viente (20) dias de plazo al partir de la fecha de la demanda y la notification. Usted debe presentar una apariencia escrita o en persona o por abogado y archivar en la corte en forma escrita sus defensas o sus objectiones a las demandas en contra suya. Se ha avisado que si usted no se defiende, la corte tomara medidas y puede entrar una orden contra usted sin previo aviso o notification y por cualquier queja o alivio que es pedido en la peticion de demanda. USTED PUEDE PERDER DINERO O OTROS DERECHOS IMPORTANTES PARA USTED. LLEVE ESTA DEMANDA A UN ABOGADO INMEDIATAMENTE. S1 USTED NO TIENE O CONOCES UN ABOGADO, VAYA EN PERSONA O LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABAJO PARA AVERIGUAR DONDE SU PUEDE ASISTENCIA LEGAL. CUMBERLAND COUNTY BAR ASSOCIATION 2 Liberty Avenue Carlisle, PA 17013 (717)249-3166 or 1-800-990-9108 Karl M. Ledebohm, Esq. P.O. Box 173 New Cumberland, PA 17070-0173 (717) 938-6929 MEMBERS 1sT FEDERAL : IN THE COURT OF COMMON PLEAS CREDIT UNION : CUMBERLAND COUNTY, : PENNSYLVANIA PLAINTIFF Vs. NO.: CANDY J.BAER and / DARRYL LEE BAER DEFENDANTS. : CIVIL ACTION-LAW COMPLAINT AND NOW, comes Members I" Federal Credit Union, the Plaintiff in the above captioned matter, by and through its attorney Karl M. Ledebohm, Esquire, and makes the following complaint: Plaintiff, Members I" Federal Credit Union ("Members I"), is a National Federal Credit Union having a principal address of 5000 Louise Drive, Mechanicsburg, PA 17055. 2. Candy J. Baer and Darryl Lee Baer (collectively referred to herein as "Defendants"), are adult individuals having a last known address of 600 Colonial View Road, Mechanicsburg, PA 17055. 3. On or about May 21, 2004, Defendants borrowed from and agreed to repay to Members I"TWENTY-THREE THOUSAND FORTY-FIVE AND 69/100 ($23,045.69) dollars (the "Loan"). The Loan is evidenced by a Closed-End Note, Disclosure, Loan and Security Agreements dated May 21, 2004 (the "Note") executed and delivered to Members I" by Defendants. A copy of the Note is attached hereto as Exhibit "A" and made part hereof. 4. The Note has never been assigned by Members I" and is still held by it as a valid and subsisting obligation of Defendants. 5. Pursuant to the terms and conditions of the Note, Defendants agreed to pay to Members 151 bi-weekly installments of principal and interest in the amount of at least $233.83 each beginning on June 11, 2004 and continuing bi-weekly thereafter. 6. Defendants are in default of Defendants' obligations under the Note as a result of Defendants' failure to make the payments due to Plaintiff as set forth in the Note. By letter dated March 1, 2006, addressed to Defendants, Members 1" exercised its rights under the Note and accelerated all amounts due under the Note and demanded the payment of all amounts due under the Note. A copy of Plaintiff's Demand is attached hereto as Exhibit "B" and made part hereof. 8. As of the date hereof. Defendants are indebted to Members 1 st in the amount of TWENTY-ONE THOUSAND FIVE HUNDRED THIRTY-ONE AND 56/100 ($21,531.56) dollars itemized as follows: a. Outstanding principal $19,076.43 b. Interest to April 7, 2006 655.13 c. Attorney's fees 1,800.00* d. Total due to Members Ist as of April 7, 2006 $21,531.56 *Legal fees are estimated in accordance with the terms of the Note. Defendant will be responsible for the payment of the actual reasonable legal fees incurred by Plaintiff subject to any limitation set forth in the Note. Defendants also agreed under the terns and conditions of the Note that in the event of default there under Defendants would pay, in addition to the amounts set forth in paragraph 8 above, costs incurred by Members 1'` as a result of the institution of these legal proceedings. 10. As set forth above, Members Ist has made demand upon Defendants to make payment of all amounts due to Members I st under the Note and, as of the date hereof, Defendants have failed and refused to make payment of all such amounts due to Members 1 st. WHEREFORE, Plaintiff, Members I" Federal Credit Union, demands judgment against Candy J. Baer and Darryl Lee Baer in the amount of TWENTY-ONE THOUSAND FIVE HUNDRED THIRTY-ONE AND 56/100 ($21,531.56) DOLLARS plus additional interest at the rate set forth in the Note to the date of Judgment on this complaint and at the legal rate thereafter, additional attorney's fees and costs of suit. Respectfully submitted, N- 7-06 V- i w? U? V K I M. Ledebohm, Esq. Supreme Court ID # : 59012 P.O. Box 173 New Cumberland, PA 17070-0173 (717)938-6929 Attorney for Plaintiff 4 SOW Louise Drive P 0 B0% 40 Mechanicsburg. PA 17055 RD PA 17055___ ANNUAL PERCENTAGE FINANCE CHARGE Amoum Flnancee Theamoumol To I of Payments The amount n RATE Thecool Wyourcretlrtasa metlollaramoum Uecretln will CrCc, on.d tlto ydu o: on your you Ad have paltl alter you halm yearl'nue- i cost you behalf made all payments as scheduled 1150%e 8735143 e $2304569 a $ 3039712 e Venable Rule ll )OUr loan M1asa'arcade ruleazrndcalMaOOVethe MnWl pacamagoflel yurcrease drtngtne lermel tors vans Jmtllhe (r .)cluri gps TM1e m ¢En urvon wul aEOamargln of wine WJes va4e The mewYr thars, mJnlNyontMHL y IIM mp,In Tl ,,6lemllnever Ceh"lhanine nmu ,i.zby mr818 Law arrUgwr4 nevtt Mlcis lM1an Any inerev role mueaxs wilrewAmmwe paYAAAodEM m=1ihv ToE[ample rlywr been waslar SS W]a115%Iw 4B mi a. me Arm W P¢nchus a Rdle EE,easee Ey 1%Jr. are year too 1¢fm 01 your lean NGIp M[re8x by w,o m°nln5 Preferred Role II chrome the allcrarh apples to your kan © A utinnitiC Pa,.c. ca.-mado RIn. N aaM you have age 1....Your legwree meMnly paymP'i1S lMgrgll a basomsrrse ANNUAL 'pCARkInN50Nrgs Account „ur ANNUAL PERCENTAGE RATE Too OCCn discounts par 20% The ANNUAL PERCENTAGE RATE e6tle5Pe T. IS a ..n lmmrcom TALE RAT W o a E Sb LET, Automatic Paymem DrYVUr eRate The rate war Initiative by 20% if ruse the JulpmaUCply m mrarproola fail to myMdrn wlpeM funds in ear account t w y o coverlne aupndhCµ'ymenli lnsu[ha[a5¢Ineelfect.10emcrearewIII MIDepenEtMlom011o IOan Fweaample Ii Worsens, Paymem Discoureas Rate 1s 1036 .no S5 COONIpen IOr60monas and you terse the Norm'. payre. anangermru your role will increase to 1020% omur rn 11MJnlorel a m nt g p y e V-W. Rate Prefenotl LJarn it w ben n o vm=d Ole lwn oW y gwAly In a pderred roe you prdeneE dscaunl is NhCn dl Ne [Me your bke wl yw IOpn This A Iprelerred ANNUM PERCENT AGE RATE will then vary accodlnp does sr the loce%( as dizchaed arove) For Exam IP rla vano0le rate loans rowel ANNUAL PFRCENTAGE RATE d 13%althrone oumFe theban oursho l r f ANNUA P R y y p e a fer L E CENTAGE RATE will so Nri eel MrWl wefenedANNUAL PERCENTAGE RATE ME men wey..dmgm I.l[C0 as dXlesndlmM Vinesel Rare previaen aWYe Fe. Reas Pularned Loans It ymtloan n A IoM rate loan and you rurally for P yob se. yeiv ANNUAL PERCENTAGE RATE will be the preleread ANNUAL PERCENTAGE RATE JSCbaad aMve lu as earned status everso¢ in attest Num arol Paymem5 AmaunlIXPaymems Paymemf"Rev, tar WIIPn Paymnls Me OUe fhOpe,ty lrvSUrerKe You may odaNI PFOPeIIy ante bear anypia our w nt that as acce table l0 Peen 129 $233 83 R( Weekly - Regtmrng MIT I'm yy p the creep ..,an 1r op 9L'1 the msurance from the smmw, cr It union Yen At pry we Ae 1 $23305 Final Due DSR2R009 $ WA S¢cnrny CJIbIH9l scolor, ether bans with the CrMq own the' Ears or f%depch, _ DIM, as[ Else x[NCters' a. YWdrC l3lwrigaseCWiI rMCICA ih Mll]puf[M1BSd I DCS[hbCl yadr vmresarww erpesnmme uemmnidn arY? %l J ` _ SIGNATURE use Cour" a r"Nen"late by l0 de mllr¢ypu xYt Requred 0aacee, BetencC The Amwl PPrcenla3e Ret¢dons Fllrrg Fe¢s Non FNm lnwrurve b l W l l h e t e, a or O e S%o yeu XhEduled peymCn IIdME do Account yours Ends depesq CdNrce ilany §N/A EWA saw :°Prrsow° Ili°a"wr w tar mwv ePNNV m.e[7nmiASea:bwq°h°gPL9almW NUds °m rvp.5mve Nrv,w nrvPr[nna Raw. wpddw° Amount Pad AMOUNT GIVEN TO YOU DIRECTLY S 19693 'u' To.1. we gnus To [145E gl ps as Ta awa..lee gas6sas To AT.T UAW AMOUNT PAID ON YOUR ACCOUNT S 3.87136 Ss Itl TS To mans t IT ws.s $ TO gx}s To cnnowses goo To rem PREPAID FINANCE CHARGE $ 5 To urines Yore 4 To ANN sdi SEC URITY INFORMATION MAKE MODEL _ VEAR 10 NUMBER TYPE VALUE OTHER(Descnbe) ymlyma,nWiOUViay pNego ovnJn?Nelwn eMmal ca syrivseN9u enp5artnd hY]iWelore5urenva O Lire mllovn rlry nangmuiryrw ? ? COARP H 18rpl eA'eb M(onvnve [wm¢ mN) WYlyw n;e lowrm unpNYa]meluey amadyw loco} % % }IAPP?atle Moe lvaMCdwegeary IwJ p?lerunou age]OOnmB Y[eeJM mahnly Gttdyw,loan AHwp e,eywN ?I wLn9 ? ? O ? ne Iw y5 ervrne'u PervN'L eM NVe even ww°Lrg lv W6ryfam ON°e e}+ % % IN ywrlwno[S hm see35eY wwlnelWl- ?ppdron mea alw?ar,w,wMmdav ra delvmmNr9erlrt s r qI ? yoa°aS,=.I o ?er"I'M (useIr, .hrcrv[vwwY a"nY VY'+,nysunc ? o ? o -1- 1 [apM[yMmrr['-is V- w'. °eddmcomdm vdi s/M I(myI : ma'"?".ae%ay[oeo (vmvuptarl m xo'm4uesumrv}e Mlw WS(ssmnnd elgtlo ovbrren[eK The ve[Ixe4mod yu MSe VucStMlMm le qde rrt. oil ep Iomenwnl ,v 1, as erte[Jnp...'Mm° ryrypa mYl Wpd My praonwryo tnowi olYa Mtn mrml Mp m(v smtrim Mle Nrni? vlnx mwu °IVni.genrm voll[las drvmrr a?sl ne^V mrsm.ry m(o ?m rra o7' trt,° ..a I mme 1. ,r?l? ry?+>,n ?r wrs.,nene 6i nlj STPiic ,imwiilnw Le [n[tlm lezln palreeeln L3 P eshv vena l.l[vr[omp?IN numrw n.n rw aiyaul °i•iu Jw, Ipg I-i ' mu??ndllmi plryrryry u Viv . CREDIT INSURANCE APPLIED FOR NOTE ONLY 04E APPLICANT MAY APPLY FOROISARILITYCOVERAGE ? Yes Q No 5mgle Credit Life Total Premium ?% Yes ? No Credit Disa bitty Total Premium ? Yes END Joint Credit Life IMeale wnlcn aPolganlsl ? App4[an? Co,ops[anI Sam Wcone wm[h aPM1tiond ?% AppKem? Co AppswM' 3104569 sou .1 E. 1145fa were n aIav nw w1 -- r..,i COP"plan'ne'Mnnewa'two 11i ire All w res rmenLy EXHIBIT "A" auamo wa?wv = 1-1 W"`m[v1 nc0 VVI[a uvn"..s1..I vrr rimxoa iq vrro-. ii and cry r'rvavaumeiewun Yw rre pCy R.wEX S NFME LOPN NIIMtlER FGCW N1 NNMtlEN MTE OF LOxX CANDY J BAER )2589 1)152TO2 OS121121YJd NPUEOSASABORRROWER($IiHE WORDS'CREDIi UNION MEANS MEMBERS I ST FEDERAL CREOI I UNION THE WORDS 10. - YOUR- ARD YOURS' MEAN 'ROSE responv IIy SE CU PITY AGREEMENT statutory uppppWyr thfoekbaiar are of shares damoral dividends in yo ur acri ouonteN at unionmay exercise thlstng wlstllboate further n°dlce to in iaull the ere t a g t you De a in Enforcement Credit em w?'il m py memcing any of the Croon on. N mP aeon losing Irre ulaf Payments The aedn union may accept Site Palyments or pamal Piedl?teinm Y.Ihudnd>r asked pearymet in lull without osolg any of the Co makers If you are sgqing this agreement as a cc maker, you agree 10 be equallyy responsible At h the operator the the credit union Trey sue either or OOIb of you The credit union tlces rat have to you that this agreement has rot been paid The Credo unmn may ex:eM the terms of nty W ithout ncniprg or releasing you from psyonere I°tl oneaseagreement 1 To yetuee nl or ti loan and at expenditures Incurred b Lhe crMK y°u en In CBar.?ec. unties ban or In realialn onasecunt ?rrrereu rIofvIl`s0 a[`nim Tnea Voere,hin'"a reg?ntkl enr?roux on d intgnsar°dr ad dinrrs I, d open fro seny secured popene secured '."'y antlrall ?arrnlrgr?Celued om Ne Cracs wuamelixauon Prcpcnyy' as Forlornly (W this Man or s any qn ONe B.rr°wer 17 vnor me read Union Fllsecwe all anlpmrs gar paws Ln.[ICO It union new and In ore fell. Horave proade, rdebt and per.R,O ones l°anl such uuar? 5 BorrmlKrs 'MrM Irezede?rce WN°ssmar" oryi Xaoceame rq ''p le Ir °merns are sal ssnoOl Iare ron purchase gnlom°ny rm, a'9pp y ? will norcoati w 'on C) van or dansrttmo onoteral unless you have yW VrenammMTbavee threwMmEp?GmGnpraRMI tryee m an s¢cunly, lmeresu eMCe01 treaA d the coparerel?'rwon=noal `ifwolnP d9iEeme'wnt In Wdc Mrorc cad oln o N9h the remorailY011eNerThan he ven'f tan a du°ooutorcocve a rr[e camel ry e q 9 YOU aCkr Isar any domme IV p4eed oylM VnEn naR,?IOnV elgi WualA' MlIa plXnaray'of IYE'p?cuon of Ine omqi nqn Should 6 e9y en lhthad°er veelup°a el anal anYSmrij heiirdersGll rr?pseaaeuan?YaYd ea?ausmn Irb'antun?n NalsConec1N0efaryla'Co11 D n?. of ud1nnn MJaO°41°gv°prposv e" bss If . other as daeres., 01 Loan 491-reared shook lipter nia onat' plop P.1 T 61002,99 Clearaunion Pi'rcludig future additeaplei rsa szuriiry?thle ban 0case Clear default the credit urvdr may a ply these Fare, and @ o os to m° payment d an sumsam at me annepr?faulvd Iudng c.su oP Faction and reasonable offorney, s lees met ton Code union may ecur up to 2W of me Repaid Orr rp and Yioanstr NO lien a right to Impress a re, Onshore, era poeslrs W Y Yp snare wrucn maynd Mld moo IMlwduat Re mend ACC nt or gemel'.Plan kaa to guaramewatnt's ebt Thiinls25pfuullybefore you do IF the borrower down t Pay the heed you wen have to be sure you ran Circle to d I at you pay up to the lull amount of the tleW I/ one burrower does net pay You they Cho have to Pay late lees or colleapn wus whlcM1 rxrease tbls :ollecl this debt from YYo without am, trying to Collect from the borrowe! The cria llu Can use the FROM cOlibloo l Mends adam9 you that 1st that borrower. such as son, you Rarmsland your wages ere If this de h is eYCrm default that tact may become a pan o your aetkt F 41]69 1102 grelm syN[TS in E]I rme Page 2 of 2 LOAN AGREEMENT Tons sCournyy 99lnemenl roe cony body" too ymr erewKKs odpposenrors hell oaS,lgIts KARL M. LEDEBOHM ATTORNEY-AT LAW P.O. BOX 173 New Cumberland, PA 17070-0173 Phone: 717-938-6929 Fax: 717-932-0317 March 1, 2006 (Via Certified and regular mail) Candy J. Baer 600 Colonial View Road Mechanicsburg, PA 17055 Candy J. Baer 9212 Berger Road, #100 Columbia, MD 21046 Darryl Lee Baer 600 Colonial View Road Mechanicsburg, PA 17055 Darryl Lee Baer 9212 Berger Road, #100 Columbia, MD 21046 RE: Members 1" Account No.: 0000131527, Loan 02 Dear Mr. and Mrs. Baer: THIS LETTER AND ANY SUBSEQUENT CORRESPONDENCE FROM THIS OFFICE IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED MAY BE USED FOR THAT PURPOSE. AN IMPORTANT STATEMENT OF RIGHTS IS INCLUDED ON THE REVERSE OF THE SECOND PAGE OF THIS LETTER. Members 1" Federal Credit Union ("Members I"") has requested my office to collect the amounts due to Member's 0 under the above account. As you know, you are in default of your obligations under the above account (the "Account") evidenced by a Closed -End Note, Disclosure, Loan and Security Agreement dated May 21, 2004 in the original principal amount of $23,045.69 (the "Note") due to your failure to make the payments required under the Note in a timely manner. As a result of your defaults, Members 1st hereby accelerates all amounts due to Members 1st under the Account and the Note and hereby demands the payment of all amounts due to EXHIBIT "B" Members Is` under the Account and the Note in the amount of $19,856.56 itemized as follows: 1. Principal $19,076.43 2. Interest to 3/l/06 655.13 3. Legal Fees 125.00 4. Total due to Member I" as of 3/1/06 $19,856.56 If you fail to deliver payment to Members I sl of the $19,856.56 within thirty (30) days of the date of this letter, Members 1 s` will have no choice but to file a legal action against you to collect all of the amounts due under the Account and the corresponding Note without further notice. In such event, in addition to the above amounts, you may also be responsible for the payment of additional reasonable legal fees and costs of suit incurred by Members 15`. Nothing herein shall constitute or be construed as an agreement on behalf of Members Is' to accept any terms and conditions in exchange for payment of the amounts due under the Account except for the immediate payment of all amounts due to Members 1" . Nothing herein shall constitute a waiver of any rights or remedies which Members 1 s` may have under any written agreement or at law or in equity to collect the balance of the indebtedness due under the Account without further notice, including, without limitation, the right to accept and apply any partial payments made on the Account without waiver of any demand for payment in full of all amounts due under the Account. Nothing herein shall constitute an agreement on behalf of Members I" to postpone or extend the maturity date under the Note. Members 1 sc looks forward to the payment of the $19,856.56 on or before March 31. 2006. Very tru}y yours, Karl M. Ledebohm CC: Stephanie McCreary, Collections Officer NOTICE This letter is an attempt to collect a debt. It you dispute the validity of this debt, or any portion thereof, and you contact the undersigned within thirty (30) days after receipt of this Notice, you will be furnished with written verification of the debt; provided, that if a lawsuit has been filed against you to collect this debt before the expiration of the thirty (30) days, the complaint filed in said lawsuit will constitute written verification of the debt. If you do not dispute the debt or any portion thereof as stated above, the undersigned will assume the debt is valid. If the original creditor of this debt is different from the creditor stated on the front page of this letter, the undersigned will provide you with the name and address of the original creditor upon written request from you within thirty (30) days of receipt of this notice. U.S. Postal Service,,, U.S. Postal Service,,, CERTIFIED MAILrn RECEIPT CERTIFIED MAIL,,., RECEIPT (Domestic Mail Only; No Insurance Coverage Provided) (Domestic Mail Only; No Insurance Coverage Provided) ru 1` +:B?A M9 `.tl s CID Postage $ N C3 Certified Fee O C3 Retum Receipt Fee (Endorsement Required) O - Restricted Delivery Fee 0 ' (Endorsement Required) do ru Total Postage & Fees 7 {' 3 J $II, IIII enter eii -dnl"N CO ru ru 7 r4 7ce C3 r-3 O Return Receipt Fee (Endorsement Required) Rertdnted Delivery Fee (Endorsement Required) ru S O Cl r- $14401 pFl]..11?. y? i 4 Posl p/I{_ H 17 l fi¢ 5,. E ? 'I L CA E R, , A ,9 i CC) Postage $ -t , r3 coddled Fee 41) C3 k' ? l I O Return Receipt Fee E d R i d t - -'y ] a otrntk.?? j s e ! Harer ( n orsement equ re ) n0) Er Restricted Delivery Fee (Endorsement Required) $Il.IJ(I C 1 U /(/, 1 6 ` f1J ` s ' Total Postage & Foes .. d 4 " t4 99g% C3 ant o . CERTIFIED MAIL,,, R (Domestic Mail only, No Insuranr 7 n a?er ?a); Postage $ $I).J9 ru 111 ?? Y p Certified Fee' 41 o 1 Postmap(i/(4 , O Re Receipt Fee t. S G Hera / ?// (Endorsem ment Required) C3 Rertdcred Delivery Fee $1 i, ill l \ f "t'G; f' A lr (Endorsement Required) cp 4 / Total Portage & Fees S C3 ant o J.- ..___....__._..... Uh ----------------------- F` Sireer,-A pi. ft. or POBox No..G?`.._(.C?py?•R?.. ?}.\y, ------------------------------- ---- Gity, Sfete, ZI 4 p? ? `ry'7? P.r?ais V LL `V'7l MEMBERS 1T FEDERAL : IN THE COURT OF COMMON PLEAS CREDIT UNION : CUMBERLAND COUNTY, : PENNSYLVANIA PLAINTIFF Vs. NO.: CANDY J. BAER and DARRYL LEE BAER DEFENDANTS. : CIVIL ACTION-LAW VERIFICATION I, Stephanie McCreary, Collections Officer for Members 1" Federat Credit Union, being authorized to do so on behalf of Members I" Federal Credit Union, hereby verify that the statements made in the foregoing pleading are true and correct to the best of my information knowledge and belief. I understand that false statements are made subject to the penalties of 18 Pa. C.S.A. Section 4904, relating to unswom falsification to authorities. Members I" Federal Credit Union B Officer r a ? ?'t -- ? C'i ?" '? -t-- i M MEMBERS 1sT FEDERAL IN THE COURT OF COMMON PLEAS CREDIT UNION CUMBERLAND tOUNTY, PLAINTIFF PENNSYLVANIA Vs. NO.: 06-2066 Ci*il Term CANDY J. BAER and DARRYL LEE BAER DEFENDANTS CIVIL ACTION-11AW PRAECIPE Please enter judgment in the above captioned proceeding ' n favor of Members 1" Federal Credit Union, Plaintiff, and against the Defendants, Cand J. Baer and Darryl Lee Baer, in the amount of TWENTY-ONE THOUSAND FIVE RED THIRTY- ONE AND 56/100 DOLLARS ($21,531.56) plus additional intere t at the rate set forth in the Note to the date of Judgment and at the legal rate thereafter, additional attorney's fees and costs of suit. Judgment is entered pursuant to Pa. R.C.P. 3031 for failure to file an Answer on behalf of Defendants, Candy L Baer and Darryl Lee B #r, to Plaintiff s Complaint within twenty (20) days of service thereof and after a 10-day Notice was sent. Date: May 31, 2006 1 M Ledeb hm, Esquire upreme Cou ID #59012 P.O. Box 173 PA 17070-0173 d, New Cumberl J (717)938-692Attorney for Pintiff I hereby certify that notices of intent to take default judgme t were forwarded to Candy J. Baer and Darryl Lee Baer by United States Mail, First Cla s, postage prepaid on May 17, 2006. The aforesaid notices were each contained within a envelope bearing the return address of the undersigned. The notices have not been returnd to the undersigned as undeliverable or otherwise. A copy of the notices and Postal Fpr s 3817 are O n hereto and marked Exhibit "A" and Exhibit "B" respectively. j 1,1 J ?. MEMBERS 1ST FEDERAL CREDIT UNION PLAINTIFF CANDY J BAER and DARRYL LEE BAER DEFENDANTS IN THE COURT CUMBERLAND' PENNSYLVANI, Vs. NO 06-2066 Cis CIVIL ACTION IMPORTANT NOTiCE TO Candy J Baer Darryl Lee Baer 600 Colonial View Road Mechanicsburg, PA 17055 PURSUANT TO THE FAIR DEBT COLLECTION P AM REQUIRED TO INFORM YOU THAT THIS LETTER SUBSEQUENT CORRESPONDENCE OR COMMUNICAT ATTEMPT TO COLLECT A DEBT AND ANY INFORMA' WILL BE USED FOR THAT PURPOSE. COMMON PLEAS I Term ?W TICES ACT, I ANY IS AN OBTAINED YOU ARE IN DEFAULT BECAUSE YOU HAVEFAILE ACTION REQUIRED OF YOU IN THIS CASE UNLESS YOU (I0) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMEN ENTERED AGAINST YOU WITHOUT A HEARING, AND YO PROPERTY OR OTHER IMPORTANT RIGHTS YOU SHOULD PAPER TO YOUR LAWYER AT ONCE IF YOU DO NOT HA CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFIC BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP May 17, 2006 Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717)249-3166 or (900)990-9109 Rarl'M Ledeb Supreme Court P O Box 173 New Cumberla (717)938-6929 Attorney for P1 TO TAKE CT WITHIN TEN MAY BE MAY LOSE TAKE THIS A LAWYER OR SET FORTH , Esq. #59012 PA 17070-0173 EXHIBIT "A" I •. 1 U.S. POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOP Received - Karl M. Ledebohm, Esq. - P.O. Box 173 - New Cumberland, PA 17070-0173 - One piece of ordinary mail addressed to C?a r-\c! a ,J . ,?i/a e r fQE'G 0 It(A_ V t.W R -?'?ec 4ltu )tL?bU r42 GA db55 PS Form 3817, January 2001 ,. U.S. POSTAL SERVICE GhK I IrlliA l e ur MAILINU MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT o0 PROVIDE FOR Mcli ANCEPQBTMA5TER _ p 0 Receiv, -- Karl M. Ledebohm, Esq. - - P.O. Box 173 - New Cumberland, PA 170'i0-0173 0 One piece of ordinary meii addressee to: e b crS4 e_ Baer Di` ^ N pp IV?f??'.?1[211LC.S?vi? L G??:S PA Ps Form 3817. Januarv 2001 EXHIBIT VB" a y s, wi Z m x F C C ' 3KVJJJJ?VI an ? an a c Me ?o I N J IJ?? a 44 n oil G r r N 1 s', ^C ? Q? N ?\ti ? 14 MEMBERS Is' FEDERAL CREDIT UNION PLAINTIFF CANDY J. BAER and DARRYL LEE BAER DEFENDANTS IN THE COURT O CUMBERLAND C PENNSYLVANIA Vs NO.: 06-2066 CIVIL ACTIO NOTICE OF JUDGMENT PURSUANT TO THE FAIR DEBT COLLECTION PRACT REQUIRED TO INFORM YOU THAT THIS DOCUMENT SUBSEQUENT CORRESPONDENCE OR COMMUNICA7 ATTEMPT TO COLLECT A DEBT AND ANY INFORMA' WILL BE USED FOR THAT PURPOSE TO Candy J Baer Darryl Lee Baer 600 Colonial View Road Mechanicsburg, PA 17055 COMMON PLEAS Term ACT, I AM ANY IS AN OBTAINED You are hereby notified that on ? ¢ ',I- -- 2006 the following judgment has been entered against you in the above captioned case: Judgment in the above captioned proceeding in favor of Me Credit Union, Plaintiff, and against the Defendants, Candy J. Baer a in the amount of TWENTY-ONE THOUSAND FIVE HUNDRED 56/100 DOLLARS ($21,531.56) plus additional interest at the rate the date of Judgment and at the legal rate thereafter, additional attoi of suit. Judgment is entered pursuant to Pa. R.C.P. 3031 for failure behalf of Defendants, Candy J. Baer and Darryl Lee Baer, to Plainti twenty (20) days of service thereof and after a 10-day Notice Dated: I hereby certify that the proper persons to receive this notice are Candy J. Baer Darryl Lee Baer 600 Colonial View Road Mechanicsburg, PA 17055 hers I" Federal Darryl Lee Baer, fIRTY-ONE AND forth in the Note to y's fees and costs file an Answer on s Complaint within Pa R.C P 236 MEMBERS 1sT FEDERAL CREDIT UNION PLAINTIFF CANDY J BAER and DARRYL LEE BAER DEFENDANTS Vs. IN THE COURT F COMMON PLEAS CUMBERLAND OUNTY, PENNSYLVANI NO. 06-2066 Civ 1 Term CIVIL ACTION-LJAW A Candy J. Baer Darryl Lee Baer Por este medio se le esta notificando que el de 2006, el/la siguiente (Orden), (Decreto), (Fallo), ha sido anotado e contra suya en el caso mencionado en el epigrafe. Fecha: Protonotario Certifico que la siguiente direction as la del defendido/a segun de residencia: Candy J. Baer Darryl Lee Baer 600 Colonial View Road Mechanicsburg, PA 17055 Respectfully Dated May 31, 2006 Sf preme Court ID #5j P.O. Box 173 New Cumberland, PA (717)938-6929 Attorney for Plaintiff en el certificado 12 7070-0173 CASE NO: 2006-02066 P SHERIFF'S RETURN - REGULAR COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND MEMBERS 1ST FEDERAL CREDIT VS BAER CANDY J ET AL 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 BAER the DEFENDANT , at 1949:00 HOURS, on the 25th day of April , 2006 at 600 COLONIAL VIEW ROAD MECHANICSBURG, PA 17055 by handing to DARRYL L BAER, HUSBAND 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 Service Postage Surcharge So Answers: 18.00 19.36 .39 10.00 R. Thomas Kline nn S//J Sworn and Subscribed t6 before me this day of A. D. 04/26/2006 KARL LEDEBOHM By: D puty Sheriff Prothonotary CASE NO: 2006-02066 P SHERIFF'S RETURN - REGULAR COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND MEMBERS 1ST FEDERAL CREDIT VS BAER CANDY J ET AL 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 BAER DARRYL LEE the DEFENDANT , at 1949:00 HOURS, on the 25th day of April 2006 at 600 COLONIAL VIEW ROAD MECHANICSBURG, PA 17055 by handing to DARRYL BAER 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: So Answers: Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 R. Thomas Kline .00 16.00 04/26/2006 C KARL LEDEBOHM dn- a1,16 Sworn and Subscribed to before By: / Z me this day of D uty Sheriff A.D. Prothonotary COMPUTER COVERAGE FORM Loc. No. 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 "ours" refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to Section VI, Definitions. Coverage Form Declarations Limit of Insurance Loc. No. ALL Loc. No. Computer Property Coverage Section Hardware $ $ Data Media $ $ All Premises Computer Property Blanket Limit of Insurance Deductible $ 500 Business Income with Extra Expense Coverage Section Monthly Limit of Indemnity $ $ Maximum Period of Indemnity Days All Premises Business Income with Extra Expense Blanket Monthly Limit of Indemnity All Premises Business Income with Extra Expense Maximum Period of Indemnity Deductible $ OR Waiting Period Other Limits of Insurance $ PI-CIW=053 5-d3 150,000 Days Days Days ? Hours ? Days Basic Limit Superseding Limit While in transit $10,000 or $ Transfer between premises $10,000 or $ Temporarily within other premises $10,000 or $ Valuation Basis: (%I Replacement Cost ? Actual Cash Value ? Operational Replacement Cost Page 1 of 13 COMMERCIAL INLAND MARINE CM 00 28 09 00 SIGNS COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy, the words "you" and "your" refer to the Named Insured shown in the Declara- tions. 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. A. Coverage We will pay for direct physical loss of or damage to Covered Property from any of the Covered Causes of Loss. 1. Covered Property, as used in this Coverage Form, means: a. Your signs; and b. Similar property of others in your care, custody or control. 2. Property Not Covered Covered Property does not include contra- band, or property in the course of illegal trans- portation or trade. 3. Covered Causes Of Loss Covered Causes of Loss means RISKS OF DIRECT PHYSICAL LOSS OR DAMAGE to Covered Property except those causes of loss listed in the Exclusions. 4. Additional Coverage - Collapse We will pay for direct loss or damage caused by or resulting from risks of direct physical loss or damage involving collapse of all or part of a building or structure caused by one or more of the following: a. Fire; lightning; windstorm; hail; explosion; smoke; aircraft; vehicles; riot; civil commo- tion; vandalism; leakage from fire extin- guishing equipment; sinkhole collapse; vol- canic action; breakage of building glass; falling objects; weight of snow, ice or sleet; water damage; earthquake; all only as in- sured against in this Coverage Form; b. Hidden decay; c. Hidden insect or vermin damage; d. Weight of people or personal property; e. Weight of rain that collects on a roof; f. Use of defective materials or methods in construction, remodeling or renovating if the collapse occurs during the course of the construction, remodeling or renovating. This Additional Coverage does not increase the Limits of Insurance provided in this Cover- age Form. B. Exclusions 1. We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes con- currently or in any sequence to the loss. a. Governmental Action Seizure or destruction of property by order of governmental authority. But we will pay for loss or damage caused by or resulting from acts of destruction or- dered by governmental authority and taken at the time of a fire to prevent its spread if the fire would be covered under this Cover- age Form. b. Nuclear Hazard (1) Any weapon employing atomic fission or fusion; or (2) Nuclear reaction or radiation, or radioac- tive contamination from any other cause. But if nuclear reaction or radia- tion, or radioactive contamination results in fire, we will pay for the direct loss or damage caused by that fire if the fire would be covered under this Coverage Forma c. War And Military Action (1) War, including undeclared or civil war; (2) Warlike action by a military force, includ- ing action in hindering or defending against an actual or expected attack, by any government, sovereign or other au- thority using military personnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power or action taken by gov- ernmental authority in hindering or de- fending against any of these. CM 00 28 09 00 Copyright, Insurance Services Office, Inc., 1999 Page 1 of 3 ? D. No Benefit To Bailee No person or organization, other than you, having custody of Covered Property will benefit from this insurance. E. Policy Period, Coverage Territory We cover loss or damage commencing: 1. During the policy period shown in the declara- tions; and 2. Within the coverage territory. F. Valuation The value of property will be the least of the fol- lowing amounts: 1. The actual cash value of that property; 2. The cost of reasonably restoring that property to its condition immediately before loss or damage; or 3. The cost of replacing that property with sub- stantially identical property. In the event of loss or damage, the value of prop- erty will be determined as of the time of loss or damage. CM 00 01 09 04 © ISO Properties, Inc., 2003 Page 3 of 3 ? 6. We will pay for covered loss or damage within 30 days after we receive the sworn proof of loss if you have complied with all the terms of this Coverage Part and: a. We have reached agreement with you on the amount of the loss; or b. An appraisal award has been made. 6. We will not be liable for any part of a loss that has been paid or made good by others. F. Otherinsurance 1. 2. You may have other insurance subject to the same plan, terms, conditions and provisions as the insurance under this Coverage Part. 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 Cover- age Part bears to the Limits of Insurance of all insurance covering on the same basis. If there is other insurance covering the same loss or damage, other than that described in 1. above, we will pay only for the amount of cov- ered 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. G. Pair, Sets Or Parts 1. Pair Or Set In case of loss or damage to any part of a pair or set we may: a. Repair or replace any part to restore the pair or set to its value before the loss or damage; or b. Pay the difference between the value of the pair or set before and after the loss or dam- age. 2. Parts In case of loss or damage to any part of Cov- ered Property consisting of several parts when complete, we will only pay for the value of the lost or damaged part. H. Recovered Property If either you or we recover any property after loss settlement, that party must give the other prompt notice. At your option, the property will be returned to you. You must then return to us the amount we paid to you for the property. We will pay recovery expenses and the expenses to repair the recov- ered property, subject to the Limit of Insurance. 1. Reinstatement Of Limit After Loss The Limit of Insurance will not be reduced by the payment of any claim, except for total loss or dam- age of a scheduled item, in which event we will re- fund the unearned premium on that item. J. Transfer Of Rights Of Recovery Against Others To Us If any person or organization to or for whom we make payment under this Coverage Part has rights to recover damages from another, those rights are transferred to us to the extent of our payment. That person or organization must do everything necessary to secure our rights and must do nothing after loss to impair them. But you may waive your rights against another party in writing: 1. Prior to a loss to your Covered Property. 2. After a loss to your Covered Property only if, at time of loss, that party is one of the following: a. Someone insured by this insurance; or b. A business firm: (1) Owned or controlled by you; or (2) That owns or controls you. This will not restrict your insurance. GENERAL CONDITIONS A. Concealment, Misrepresentation Or Fraud This Coverage Part is void in any case of fraud, in- tentional concealment or misrepresentation of a material fact, by you or any other insured, at any time, concerning: 1. This Coverage Part; 2. The Covered Property; 3. Your interest in the Covered Property; or 4. A claim under this Coverage Part. B. 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 Part at any one or more locations will not affect cover- age at any location where, at the time of loss or damage, the breach of condition does not exist. C. Legal Action Against Us No one may bring a legal action against us under this Coverage Part unless: 1. There has been full compliance with all the terms of this Coverage Part; and 2. The action is brought within 2 years after you first have knowledge of the direct loss or dam- age. Page 2 of 3 © ISO Properties, Inc., 2003 CM 00 01 09 04 ? COMMERCIAL INLAND MARINE CM 00 01 09 04 COMMERCIAL INLAND MARINE CONDITIONS The following conditions apply in addition to the Common Policy Conditions and applicable Additional Conditions in Commercial Inland Marine Coverage Forms: LOSS CONDITIONS A. Abandonment There can be no abandonment of any property to us. B. Appraisal If we and you disagree on the value of the prop- erty 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 um- pire. If they cannot agree, either may request that selection be made by a judge of a court having ju- risdiction. The appraisers will state separately the value of the property and amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: 1. Pay its chosen appraiser; and 2. 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. C. Duties In The Event Of Loss You must see that the following are done in the event of loss or damage to Covered Property: 1. Notify the police if a law may have been bro- ken. 2. Give us prompt notice of the loss or damage. Include a description of the property involved. 3. As soon as possible, give us a description of how, when and where the loss or damage oc- curred. 4. Take all reasonable steps to protect the Cov- ered 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 Insurance. However, we will not pay for any subsequent loss or damage result- ing from a cause of loss that is not a Covered Cause of Loss. Also, if feasible, set the dam- aged property aside and in the best possible order for examination. 6. You will not, except at your own cost, voluntar- ily make a payment, assume any obligation, or incur any expense without our consent. 6. As often as may be reasonably required, per- mit us to inspect the property proving the loss or damage and examine your books and re- cords. 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. We may examine any insured under oath, while not in the presence of any other insured and at such times as may be reasonably re- quired, about any matter relating to this insur- ance or the claim, including an insured's books and records. In the event of an examination, an insured's answers must be signed. 8. Send us a signed, sworn proof of loss contain- ing the information we request to settle the claim. You must do this within 60 days after our request. We will supply you with the necessary forms. 9. Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or suit. 10. Cooperate with us in the investigation or set- tlement of the claim. D. Insurance Under Two Or More Coverages If two or more of this policy's coverages apply to the same loss or damage, we will not pay more than the actual amount of the loss or damage. E. Loss Payment 1. We will give notice of our intentions within 30 days after we receive the sworn proof of loss. 2. We will not pay you more than your financial interest in the Covered Property. 3. We may adjust losses with the owners of lost or damaged property if other than you. If we pay the owners, such payments will satisfy your claim against us for the owners' property. We will not pay the owners more than their fi- nancial interest in the Covered Property. 4. We may elect to defend you against suits aris- ing from claims of owners of property. We will do this at our expense. CM 00 01 09 04 0 ISO Properties, Inc., 2003 Page 1 of 3 ? PI-GL-002,(8/94) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION - ASBESTOS LIABILITY This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART The following exclusion is added to paragraph 2., Exclusions of COVERAGE A - BODILY INJURY AND PROPERTY DAMAGE LIABILITY (Section 1 - Coverages) and paragraph 2., Exclusions of COVERAGE B - PERSONAL AND ADVERTISING INJURY LIABILITY (Section 1 - Coverages): This insurance does not apply to: "Bodily injury,' "property damage," "personal injury" or "advertising injury" arising out of Inhaling, ingesting or prolonged physical exposure to asbestos or goods or products containing asbestos; 2. The use of asbestos in constructing or manufacturing any good, product or structure; 3. The removal of asbestos from any good, product or structure; or 4. The manufacture, sale, transportation, storage or disposal of asbestos or goods or products containing asbestos. The coverage afforded by this policy does not apply to payment for the investigation or defense of any loss or "suit,' injury or damage or any cost, fine or penalty or for any expense or claim or "suit" related to any of the above. Page 1 of 1 1 ? 4 PI-GL . -001(8/64) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION - LEAD LIABILITY This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART The following exclusion is added to paragraph 2., Exclusions of COVERAGE A - BODILY INJURY AND PROPERTY DAMAGE LIABILITY (Section 1 - Coverages) and paragraph 2., Exclusions of COVERAGE B - PERSONAL AND ADVERTISING INJURY LIABILITY (Section 1 - Coverages): This insurance does not apply to: 1. "Bodily injury," "property damage," or "personal and advertising injury" arising out of or caused by the actual or alleged: a. Exposure to or existence of lead, paint containing lead, or any other material or substance containing lead; b. Manufacture, distribution, sale, resale, rebranding, installation, repair, removal, encapsulation, abatement, replacement or handling of lead, paint containing lead, or any other material or substance containing lead; Whether or not the lead is or was at any time airborne as a particulate, contained in a product ingested, inhaled, transmitted in any fashion, or found in any form whatsoever. 2. Any legal obligation of any insured for indemnification or contribution due to damages arising out of "bodily injury," "property damage" or "personal and advertising injury" caused by lead, paint containing lead, or any other substance or material containing lead. 3. Any loss, cost, expense or damages, whether direct or consequential, arising out of any: (a) Request, demand or order that any insured or others test for, monitor, clean up, remove, abate, contain, treat or neutralize lead, paint containing lead, or any other substance or material containing lead, or in any way respond to, or assess the effects of lead; or (b) Claim or suit related to, testing for, monitoring, cleaning up, removing, abating, containing, treating or neutralizing lead, paint containing lead, or any other substance or material containing lead or in any way responding to or assessing the effects of lead. Page 1 of 1 COMMERCIAL GENERAL LIABILITY CG 24 02 12 04 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BINDING ARBITRATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART ELECTRONIC DATA LIABILITY COVERAGE PART LIQUOR LIABILITY COVERAGE PART OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART PRODUCT WITHDRAWAL COVERAGE PART RAILROAD PROTECTIVE LIABILITY COVERAGE PART UNDERGROUND STORAGE TANK POLICY If we and the insured do not agree whether coverage is provided under this Coverage Part for a claim made against the insured, then either party may make a written demand for arbitration. When this demand is made, each party will select an arbitrator. The two arbitrators will select a third. If they cannot agree within 30 days, either may request that selection be made by a judge of a court having juris- diction. Each party will: 2. Bear the expenses of the third arbitrator equally. Unless both parties agree otherwise, arbitration will take place in the county or parish in which the ad- dress shown in the Declarations is located. Local rules of law as to procedure and evidence will apply. A decision agreed to by two of the arbitrators will be binding. 1. Pay the expenses it incurs; and CG 24 0212 04 © ISO Properties, Inc., 2003 Page 1 of 1 0 COMMERCIAL GENERAL LIABILITY CG 21 7011 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CAP ON LOSSES FROM CERTIFIED ACTS OF TERRORISM This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART LIQUOR LIABILITY COVERAGE PART OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART RAILROAD PROTECTIVE LIABILITY COVERAGE PART UNDERGROUND STORAGE TANK POLICY With respect to any one or more "certified acts of terrorism", we will not pay any amounts for which we are not responsible under the terms of the federal Terrorism Risk Insurance Act of 2002 (including sub- sequent acts of Congress pursuant to the Act) due to the application of any clause which results in a cap on our liability for payments for terrorism losses. "Certified act of terrorism" means an act that is certi- fied by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism pursuant to the federal Terrorism Risk Insurance Act of 2002. The federal Terrorism Risk Insurance Act of 2002 sets forth the following criteria for a "certified act of terror- ism": 1. The act resulted in aggregate losses in excess of $5 million; and 2. The act is a violent act or an act that is dangerous to human life, property or infrastructure and is committed by an individual or individuals acting on behalf of any foreign person or foreign interest, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. CG 21 70 11 02 C ISO Properties, Inc., 2002 Page 1 of 1 ? COMMERCIAL GENERAL LIABILITY CG 21 67 12 04 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FUNGI OR BACTERIA EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART A. The following exclusion is added to Paragraph 2. Exclusions of Section I - Coverage A - Bodily Injury And Property Damage Liability: 2. Exclusions This insurance does not apply to: Fungi Or Bacteria a. "Bodily injury" or "property damage" which would not have occurred, in whole or in part, but for the actual, alleged or threat- ened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of, any "fungi" or bacteria on or within a building or structure, including its contents, regardless of whether any other cause, event, material or product contributed con- currently or in any sequence to such injury or damage. b. Any loss, cost or expenses arising out of the abating, testing for, monitoring, cleaning up, removing, containing, treating, detoxify- ing, neutralizing, remediating or disposing of, or in any way responding to, or assess- ing the effects of, "fungi" or bacteria, by any insured or by any other person or entity. This exclusion does not apply to any "fungi" or bacteria that are, are on, or are contained in, a good or product intended for bodily consump- tion. B. The following exclusion is added to Paragraph 2. Exclusions of Section I - Coverage B - Per- sonal And Advertising Injury Liability: 2. Exclusions This insurance does not apply to: Fungi Or Bacteria a. "Personal and advertising injury" which would not have taken place, in whole or in part, but for the actual, alleged or threat- ened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any "fungi" or bacteria on or within a building or structure, including its contents, regardless of whether any other cause, event, material or product contributed con- currently or in any sequence to such injury. b. Any loss, cost or expense arising out of the abating, testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, neutralizing, remediating or disposing of, or in any way responding to, or assessing the effects of, "fungi" or bacteria, by any in- sured or by any other person or entity. C. The following definition is added to the Definitions Section: "Fungi" means any type or form of fungus, includ- ing mold or mildew and any mycotoxins, spores, scents or byproducts produced or released by fungi. CG 21 67 12 04 0 ISO Properties, Inc., 2003 Page 1 of 1 ? COMMERCIAL GENERAL LIABILITY CG 21 47 07 98 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., Exclusions of Section I - Coverage A - Bodily Injury And Property Damage Liability: This insurance does not apply to: "Bodily injury" to: (1) A person arising out of any: (a) Refusal to employ that person; (b) Termination of that person's employ- ment; or (c) Employment-related practices, policies, acts or omissions, such as coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, hu- miliation or discrimination directed at that person; or (2) 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 (a), (b), or (c) above is di- rected. This exclusion applies: (1) Whether the insured may be liable as an employer or in any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay dam- ages because of the injury. B. The following exclusion is added to Paragraph 2., Exclusions of Section I - Coverage B - Per- sonal And Advertising Injury Liability: This insurance does not apply to: "Personal and advertising injury" to: (1) A person arising out of any: (a) Refusal to employ that person; (b) Termination of that person's employ- ment; or (c) Employment-related practices, policies, acts or omissions, such as coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, hu- miliation or discrimination directed at that person; or (2) The spouse, child, parent, brother or sister of that person as a consequence of "per- sonal and advertising injury" to that person at whom any of the employment-related practices described in Paragraphs (a), (b), or (c) above is directed. This exclusion applies: (1) Whether the insured may be liable as an employer or in any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay dam- ages because of the injury. CG 21 47 07 98 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 1 ? COMMERCIAL GENERAL LIABILITY CG 21 46 07 98 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ABUSE OR MOLESTATION EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART The following exclusion is added to Paragraph 2., Exclusions of Section I - Coverage A - Bodily Injury And Property Damage Liability and Para- graph 2., Exclusions of Section I - Coverage B - Personal And Advertising Injury Liability: This insurance does not apply to "bodily injury", "property damage" or "personal and advertising injury" arising out of: 1. The actual or threatened abuse or molestation by anyone of any person while in the care, custody or control of any insured, or 2. The negligent: a. Employment; b. Investigation; c. Supervision; d. Reporting to the proper authorities, or failure to so report; or e. Retention; of a person for whom any insured is or ever was legally responsible and whose conduct would be excluded by Paragraph 1. above. CG 21 46 07 98 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 1 ? POLICY NUMBER: PHPK193247 COMMERCIAL GENERAL LIABILITY CG 2135 10 01 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION - COVERAGE C - MEDICAL PAYMENTS This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE And Location Of Premises Or Classification: (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) With respect to any premises or classification shown in the Schedule: 1. Section I - Coverage C - Medical Payments does not apply and none of the references to it in the Coverage Part apply: and 2. The following is added to Section I - Supple- mentary Payments: h. Expenses incurred by the insured for first aid administered to others at the time of an accident for "bodily injury" to which this in- surance applies. CG 21 36 10 01 © ISOProperties, Inc., 2000 Page 1 of 1 ? COMMERCIAL GENERAL LIABILITY CG 00 67 03 05 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION - VIOLATION OF STATUTES THAT GOVERN E-MAILS, FAX, PHONE CALLS OR OTHER METHODS OF SENDING MATERIAL OR INFORMATION 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 Section I - Coverage A - Bodily Exclusions of Section I - Coverage B - Per- Injury And Property Damage Liability: sonal And Advertising Injury Liability: 2. Exclusions 2. Exclusions This insurance does not apply to: DISTRIBUTION OF MATERIAL IN VIOLATION OF STATUTES "Bodily injury" or "property damage" arising di- rectly or indirectly out of any action or omission that violates or is alleged to violate: a. The Telephone Consumer Protection Act (TCPA), including any amendment of or ad- dition to such law; or b. The CAN-SPAM Act of 2003, including any amendment of or addition to such law; or c. Any statute, ordinance or regulation, other than the TCPA or CAN-SPAM Act of 2003, that prohibits or limits the sending, transmit- ting, communicating or distribution of mate- rial or information. This insurance does not apply to: DISTRIBUTION OF MATERIAL IN VIOLATION OF STATUTES "Personal and advertising injury' arising directly or indirectly out of any action or omission that violates or is alleged to violate: a. The Telephone Consumer Protection Act (TCPA), including any amendment of or ad- dition to such law; or b. The CAN-SPAM Act of 2003, including any amendment of or addition to such law; or c. Any statute, ordinance or regulation, other than the TCPA or CAN-SPAM Act of 2003, that prohibits or limits the sending, transmit- ting, communicating or distribution of mate- rial or information. CG 00 67 03 05 0 ISO Properties, Inc., 2004 Page 1 of 1 ? b. Loss of use of tangible property that is not physically injured. All such loss of use shall be deemed to occur at the time of the "occur- rence" that caused it. For the purposes of this insurance, electronic data is not tangible property. As used in this definition, electronic data means information, facts or programs stored as or on, created or used on, or transmitted to or from com- puter software, including systems and applications software, hard or floppy disks, CD-ROMS, tapes, drives, cells, data processing devices or any other media which are used with electronically con- trolled equipment. 18. "Suit" means a civil proceeding in which damages because of "bodily injury", "property damage" or "personal and advertising injury" to which this in- surance applies are alleged. "Suit" includes: a. An arbitration proceeding in which such dam- ages are claimed and to which the insured must submit or does submit with our consent; or b. Any other alternative dispute resolution pro- ceeding in which such damages are claimed and to which the insured submits with our con- sent. 19."Temporary worker" means a person who is fur- nished to you to substitute for a permanent "em- ployee" on leave or to meet seasonal or short-term workload conditions. 20. "Volunteer worker" means a person who is not your "employee", and who donates his or her work and acts at the direction of and within the scope of duties determined by you, and is not paid a fee, salary or other compensation by you or anyone else for their work performed for you. 21. "Your product": a. Means: (1) Any goods or products, other than real property, manufactured, sold, handled, dis- tributed or disposed of by: (a) You; (b) Others trading under your name; or (c) A person or organization whose busi- ness or assets you have acquired; and (2) Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. b. Includes (1) Warranties or representations made at any time with respect to the fitness, quality, du- rability, performance or use of "your prod- uct"; and (2) The providing of or failure to provide warn- ings or instructions. c. Does not include vending machines or other property rented to or located for the use of oth- ers but not sold. 22. "Your work": a. Means: (1) Work or operations performed by you or on your behalf, and (2) Materials, parts or equipment furnished in connection with such work or operations. b. Includes (1) Warranties or representations made at any time with respect to the fitness, quality, du- rability, performance or use of "your work" and (2) The providing of or failure to provide warn- ings or instructions. CG 00 01 12 04 © ISO Properties, Inc., 2003 Page 15 of 16 ? (1) Equipment designed primarily for: 16. "Products-completed operations hazard": (a) Snow removal; a. Includes all "bodily injury" and "property dam- (b) Road maintenance, but not construction age" occurring away from premises you own or or resurfacing; or rent and arising out of your product or your work except: (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 clean- ing, geophysical exploration, lighting and well servicing equipment. However, "mobile equipment" does not include any land vehicles that are subject to a compulsory or financial responsibility law or other motor vehi- cle insurance law in the state where it is licensed or principally garaged. Land vehicles subject to a compulsory or financial responsibility law or other motor vehicle insurance law are considered "autos". 13. "Occurrence" means an accident, including con- tinuous or repeated exposure to substantially the same general harmful conditions. 14."Personal and advertising injury" means injury, including consequential "bodily injury", arising out of one or more of the following offenses: a. False arrest, detention or imprisonment; b. Malicious prosecution; c. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person oc- cupies, committed by or on behalf of its owner, landlord or lessor; d. Oral or written publication, in any manner, of material that slanders or libels a person or or- ganization or disparages a person's or organi- zation's goods, products or services; e. Oral or written publication, in any manner, of material that violates a person's right of pri- vacy; f. The use of another's advertising idea in your "advertisement; or g. Infringing upon another's copyright, trade dress or slogan in your "advertisement". 16. "Pollutants" mean any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. (1) Products that are still in your physical pos- session; or (2) Work that has not yet been completed or abandoned. However, "your work" will be deemed completed at the earliest of the fol- lowing times: (a) When all of the work called for in your contract has been completed. (b) When all of the work to be done at the job site has been completed if your con- tract calls for work at more than one job site. (c) 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. b. Does not include "bodily injury' or "property damage" arising out of: (1) The transportation of property, unless the injury or damage arises out of a condition in or on a vehicle not owned or operated by you, and that condition was created by the "loading or unloading" of that vehicle by any insured; (2) The existence of tools, uninstalled equip- ment or abandoned or unused materials; or (3) Products or operations for which the classi- fication, listed in the Declarations or in a policy schedule, states that products- completed operations are subject to the General Aggregate Limit. 17. "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 Page 14 of 16 © ISO Properties, Inc., 2003 CG 00 01 12 04 ? b. Your fulfilling the terms of the contract or agreement. g. "Insured contract" means: a. A contract for a lease of premises. However, that portion of the contract for a lease of prem- ises that indemnifies any person or organiza- tion for damage by fire to premises while rented to you or temporarily occupied by you with permission of the owner is not an "insured contract"; b. A sidetrack agreement; c. Any easement or license agreement, except in connection with construction or demolition op- erations on or within 50 feet of a railroad; d. An obligation, as required by ordinance, to indemnify a municipality, except in connection with work for a municipality; e. An elevator maintenance agreement; f. That part of any other contract or agreement pertaining to your business (including an in- demnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another party to pay for "bodily injury" or "property dam- age" to a third person or organization. Tort li- ability means a liability that would be imposed by law in the absence of any contract or agreement. Paragraph f. does not include that part of any contract or agreement: (1) That indemnifies a railroad for "bodily in- jury" or "property damage" arising out of construction or demolition operations, within 50 feet of any railroad property and affect- ing any railroad bridge or trestle, tracks, road-beds, tunnel, underpass or crossing; (2) That indemnifies an architect, engineer or surveyor for injury or damage arising out of: (a) Preparing, approving, or failing to pre- pare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifi- cations; 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, engineer or surveyor, assumes liability for an injury or damage arising out of the in- sured's rendering or failure to render pro- fessional services, including those listed in (2) above and supervisory, inspection, ar- chitectural or engineering activities. 10. "Leased worker" means a person leased to you by a labor leasing firm under an agreement between you and the labor leasing firm, to perform duties related to the conduct of your business. "Leased worker" does not include a "temporary worker". 11."Loading or unloading" means the handling of property: a. After it is moved from the place where it is accepted for movement into or onto an aircraft, 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, water- craft or "auto" to the place where it is finally de- livered; 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". 12."Mobile equipment" means any of the following types of land vehicles, including any attached ma- chinery 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, main- tained primarily to provide mobility to perma- nently mounted: (1) Power cranes, shovels, loaders, diggers or drills; or (2) Road construction or resurfacing equipment such as graders, scrapers or rollers; 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 at- tached equipment of the following types: (1) Air compressors, pumps and generators, including spraying, welding, building clean- ing, geophysical exploration, lighting 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 fol- lowing types of permanently attached equip- ment are not "mobile equipment" but will be considered "autos": CG 00 01.12 04 0 ISO Properties, Inc., 2003 Page 13 of 16 ? 6. Representations By accepting this policy, you agree: a. The statements in the Declarations are accu- rate and complete; b. Those statements are based upon representa- tions you made to us; and c. We have issued this policy in reliance upon your representations. 7. Separation Of Insureds Except with respect to the Limits of Insurance, and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this in- surance applies: a. As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom claim is made or "suit" is brought. 3. Transfer Of Rights Of Recovery Against Others To Us If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are transferred to us. The in- sured must do nothing after loss to impair them. At our request, the insured will bring "suit" or transfer those rights to us and help us enforce them. 9. When We Do Not Renew If we decide not to renew this Coverage Part, we will mail or deliver to the first Named Insured shown in the Declarations written notice of the nonrenewal not less than 30 days before the expi- ration date. If notice is mailed, proof of mailing will be sufficient proof of notice. SECTION V - DEFINITIONS 1. "Advertisement" means a notice that is broadcast or published to the general public or specific mar- ket segments about your goods, products, or ser- vices for the purpose of attracting customers or supporters. For the purposes of this definition: a. Notices that are published include material placed on the Internet or on similar electronic means of communication; and b. Regarding web-sites, only that part of a web- site that is about your goods, products or ser- vices for the purposes of attracting customers or supporters is considered an advertisement. 2. "Auto" means: a. A land motor vehicle, trailer or semitrailer designed for travel on public roads, including any attached machinery or equipment; or b. Any other land vehicle that is subject to a com- pulsory or financial responsibility law or other motor vehicle insurance law in the state where it is licensed or principally garaged. However, "auto" does not include "mobile equip- ment". 3. "Bodily injury" means bodily injury, sickness or disease sustained by a person, including death resulting from any of these at any time. 4. "Coverage territory" means: a. The United States of America (including its territories and possessions), Puerto Rico and Canada; b. International waters or airspace, but only if the injury or damage occurs in the course of travel or transportation between any places included in a. above; or c. All other parts of the world if the injury or dam- age arises out of: (1) Goods or products made or sold by you in the territory described in a. above; (2) The activities of a person whose home is in the territory described in a. above, but is away for a short time on your business; or (3) Personal and advertising injury" offenses that take place through the Internet or simi- lar electronic means of communication provided the insured's responsibility to pay dam- ages is determined in a "suit" on the merits, in the territory described in a. above or in a settlement we agree to. 5. "Employee" includes a "leased worker". "Em- ployee" does not include a "temporary worker". 6. "Executive officer" means a person holding any of the officer positions created by your charter, con- stitution, by-laws or any other similar governing document. 7. "Hostile fire" means one which becomes uncon- trollable or breaks out from where it was intended to be. 8. "Impaired property" means tangible property, other than "your product" or "your work", that cannot be used or is less useful because: a. It incorporates "your product" or "your work" that is known or thought to be defective, defi- cient, inadequate or dangerous; or b. You have failed to fulfill the terms of a contract or agreement; if such property can be restored to use by: a. The repair, replacement, adjustment or re- moval of "your product" or "your work"; or Page 12 of 15 © ISO Properties, Inc., 2003 CG 00 01 12 04 ? b. To sue us on this Coverage Part unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured; but we will not be liable for damages that are not payable under the terms of this Coverage Part or that are in excess of the ap- plicable limit of insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claim- ant's legal representative. 4. Other Insurance If other valid and collectible insurance is available to the insured for a loss we cover under 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. be- low applies. If this insurance is primary, our ob- ligations 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. b. Excess Insurance This insurance is excess over: (1) Any of the other insurance, whether pri- mary, excess, contingent or on any other basis: (a) That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for "your work'; (b) That is Fire insurance for premises rented to you or temporarily occupied by you with permission of the owner; (c) That is insurance purchased by you to cover your liability as a tenant for "prop- erty damage" to premises rented to you or temporarily occupied by you with permission of the owner; or (d) If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to Exclusion g. of Section I - Coverage A - Bodily Injury And Property Damage Liability. (2) Any other primary insurance available to you covering liability for damages arising out of the premises or operations, or the products and completed operations, for which you have been added as an addi- tional insured by attachment of an en- dorsement. When this insurance is excess, we will have no duty under Coverages A or B to defend the in- sured against any "suit" if any other insurer has a duty to defend the insured against that "suit". If no other insurer defends, we will undertake to do so, but we will be entitled to the insured's rights against all those other insurers. 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 insur- ance would pay for the loss in the absence of this insurance; and (2) The total of all deductible and self-insured amounts under all that other insurance. 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 contribution by equal shares, we will follow this method also. Under this approach each insurer con- tributes equal amounts until it has paid its ap- plicable limit of insurance or none of the loss remains, whichever comes first. If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers. 5. Premium Audit a. We will compute all premiums for this Cover- age Part in accordance with our rules and rates. b. Premium shown in this Coverage Part as ad- vance premium is a deposit premium only. At the close of each audit period we will compute the earned premium for that period and send notice to the first Named Insured. The due date for audit and retrospective premiums is the date shown as the due date on the bill. If the sum of the advance and audit premiums paid for the policy period is greater than the earned premium, we will return the excess to the first Named Insured. c. The first Named Insured must keep records of the information we need for premium computa- tion, and send us copies at such times as we may request. CG 00 01 12 04 0 ISO Properties, Inc., 2003 Page 11 of 15 ? 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 damages 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 op- erations 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 and advertising injury" sustained 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". 6. Subject to 5. above, the Damage To Premises Rented To You Limit is the most we will pay under Coverage A for damages because of "property damage" to any one premises, while rented to you, or in the case of damage by fire, while rented to you or temporarily occupied by you with permis- sion of the owner. 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" sus- tained 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 purposes of determining the Limits of Insurance. SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS 1. Bankruptcy Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obliga- tions under this Coverage Part. 2. Duties In The Event Of 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 pos- sible, 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 or settlement of the claim or defense against the "suit"; and (4) Assist us, upon our request, in the en- forcement of any right against any person or organization which may be liable to the insured because of injury or damage to which this insurance may also apply. d. No insured will, except at that insured's own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent. 3. Legal Action Against Us No person or organization has a right under this Coverage Part: a. To join us as a party or otherwise bring us into a "suit" asking for damages from an insured; or Page 10 of 15 0 ISO Properties, Inc., 2003 CG 00 01 12 04 ? d. An organization other than a partnership, joint venture or limited liability company, you are an insured. Your "executive officers" and directors are insureds, but only with respect to their du- ties as your officers or directors. Your stock- holders are also insureds, but only with respect to their liability as stockholders. e. A trust, you are an insured. Your trustees are also insureds, but only with respect to their du- ties as trustees. 2. Each of the following is also an insured: a. Your "volunteer workers" only while performing duties related to the conduct of your business, or your "employees", other than either your "executive officers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these "em- ployees" or "volunteer workers" are insureds for: (1) "Bodily injury' or "personal and advertising injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited li- ability company), to a co-"employee" while in the course of his or her em- ployment or performing duties related to the conduct of your business, or to your other "volunteer workers" while perform- ing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co-"employee" or "volun- teer worker" as a consequence of Para- graph (1)(a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in Paragraphs (1)(a) or (b) above; or (d) Arising out of his or her providing or failing to provide professional health care services. (2) "Property damage" to property: (a) Owned, occupied or used by, (b) Rented to, in the care, custody or con- trol of, or over which physical control is being exercised for any purpose by you, any of your "employees", "volunteer workers", any partner or member (if you are a partnership or joint venture), or any mem- ber (if you area limited liability company). b. Any person (other than your "employee" or "volunteer worker"), or any organization while acting as your real estate manager. c. Any person or organization having proper temporary custody of your property if you die, but only: (1) With respect to liability arising out of the maintenance or use of that property; and (2) Until your legal representative has been appointed. d. Your legal representative if you die, but only with respect to duties as such. That represen- tative will have all your rights and duties under this Coverage Part. 3. Any organization you newly acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain ownership or majority interest, will qualify as a Named In- sured if there is no other similar insurance avail- able to that organization. However: a. Coverage under this provision is afforded only until the 90th day after you acquire or form the organization or the end of the policy period, whichever is earlier; 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 and 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, joint venture or limited liability company that is not shown as a Named Insured in the Declarations. SECTION III - LIMITS OF INSURANCE 1. The Limits of Insurance shown in the Declarations and the rules below fix the most we will pay re- gardless of the number of: a. Insureds; b. Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suits". CG 00 01 12 04 0 ISO Properties, Inc., 2003 Page 9 of 16 ? c. 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. d. All reasonable expenses incurred by the in- sured at our request to assist us in the investi- gation or defense of the claim or "suit", includ- ing actual loss of earnings up to $250 a day because of time off from work. e. All costs taxed against the insured in the "suit". f. Prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the applicable limit of insurance, we will not pay any prejudgment in- terest based on that period of time after the of- fer. g. All interest on the full amount of any judgment that accrues after entry of the judgment and before we have paid, offered to pay, or depos- ited 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. 2. 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 indemnitee if all of the following conditions are met: a. The "suit" against the indemnitee seeks dam- ages for which the insured has assumed the li- ability of the indemnitee in a contract or agree- ment 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 as- sumed by the insured in the same "insured contract"; d. The allegations in the "suit" and the information we know about the "occurrence" are such that no conflict appears to exist between the inter- ests of the insured and the interests of the in- demnitee; e. The indemnitee and the insured ask us to conduct and control the defense of that indem- nitee against such "suit" and agree that we can assign the same counsel to defend the insured and the indemnitee; and f. The indemnitee. (1) Agrees in writing to. (a) Cooperate with us in the investigation, settlement or defense of the "suit"; (b) Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the "suit"; (c) Notify any other insurer whose coverage is available to the indemnitee; and (d) Cooperate with us with respect to coor- dinating other applicable insurance available to the indemnitee; and (2) Provides us with written authorization to: (a) Obtain records and other information 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, attor- neys' fees incurred by us in the defense of that in- demnitee, necessary litigation expenses incurred by us and necessary litigation expenses incurred by the indemnitee at our request will be paid as Supplementary Payments. Notwithstanding the provisions of Paragraph 2.b.(2) of Section I - Cov- erage A - Bodily Injury And Property Damage Li- ability, 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 indemnitee and to pay for attorneys' fees and necessary litiga- tion expenses as Supplementary Payments ends when: a. We have used up the applicable limit of insur- ance in the payment of judgments or settle- ments; or b. The conditions set forth above, or the terms of the agreement described in Paragraph f. above, are no longer met. SECTION 11- WHO IS AN INSURED 1. If you are designated in the Declarations as: a. An individual, you and your spouse are insur- eds, 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 re- spect to the conduct of your business. c. A limited liability company, you are an insured, Your members are also insureds, but only with respect to the conduct of your business. Your managers are insureds, but only with respect to their duties as your managers. Page 8 of 16 © ISO Properties, inc.; 2003 CG 00 01 12 04 ? m. Pollution "Personal and advertising injury" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or es- cape of "pollutants" at any time. n. Pollution-kelated Any loss, cost or expense arising out of any: (1) Request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants"; or (2) Claim or suit by or on behalf of a govern- mental authority for damages because of testing for, monitoring, cleaning up, remov- ing, containing, treating, detoxifying or neu- tralizing, or in any way responding to, or assessing the effects of, "pollutants". o. War "Personal and advertising injury", however caused, arising, directly or indirectly, out of, (1) War, including undeclared or civil war; (2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any govern- ment, sovereign or other authority using military personnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental au- thority in hindering or defending against any of these. COVERAGE C MEDICAL PAYMENTS 1. Insuring Agreement a. We will pay medical expenses as described below for "bodily injury" caused by an accident: (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 "coverage territory" and during the policy period; (2) The expenses are incurred and reported to us within one year of the date of the acci- dent; and (3) The injured person submits to examination, at our expense, by physicians of our choice as often as we reasonably require. b. We will make these payments regardless of fault. These payments will not exceed the ap- plicable limit of insurance. We will pay reason- able 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. Any Insured To any insured, except "volunteer workers". b. Hired Person To a person hired to do work for or on behalf of any insured or a tenant of any insured. c. Injury On Normally Occupied Premises To a person injured on that part of premises you own or rent that the person normally occu- pies. d. Workers Compensation And Similar Laws 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. Athletics Activities To a person injured while practicing, instructing or participating in any physical exercises or games, sports, or athletic contests. f. Products-Completed Operations Hazard Included within the "products-completed opera- tions hazard". g. Coverage A Exclusions Excluded under Coverage A. SUPPLEMENTARY PAYMENTS - COVERAGES A AND B 1. We will pay, with respect to any claim we investi- gate or settle, or any "suit" against an insured we defend: a. All expenses we incur. b. Up to $250 for cost of bail bonds required because 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. CG 00 01 12 04 © ISO Properties, Inc., 2003 Page 7 of 15 ? (2) Our right and duty to defend end when we have used up the applicable limit of insur- ance in the payment of judgments or set- tlements under Coverages A or B or medi- cal 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 Pay- ments - Coverages A and B. b. This insurance applies to "personal and adver- tising injury" caused by an offense arising out of your business but only if the offense was committed in the "coverage territory" during the policy period. 2. Exclusions This insurance does not apply to: a. Knowing Violation Of Rights Of Another "Personal and advertising injury" caused by or at the direction of the insured with the knowl- edge that the act would violate the rights of an- other and would inflict "personal and advertis- ing injury". b. Material Published With Knowledge Of Falsity "Personal and advertising injury" arising out of oral or written publication of material, if done by or at the direction of the insured with knowl- edge of its falsity. c. Material Published Prior To Policy Period "Personal and advertising injury' arising out of oral or written publication of material whose first publication took place before the beginning of the policy period. d. Criminal Acts "Personal and advertising injury" arising out of a criminal act committed by or at the direction of the insured. e. Contractual Liability "Personal and advertising injury" for which the insured has assumed liability in a contract or agreement. This exclusion does not apply to li- ability for damages that the insured would have in the absence of the contract or agreement. f. Breach Of Contract "Personal and advertising injury" arising out of a breach of contract, except an implied con- tract to use another's advertising idea in your "advertisement". g. Quality Or Performance Of Goods - Failure To Conform To Statements "Personal and advertising injury" arising out of the failure of goods, products or services to conform with any statement of quality or per- formance made in your "advertisement". h. Wrong Description Of Prices "Personal and advertising injury" arising out of the wrong description of the price of goods, products or services stated in your "advertise- ment". Infringement Of Copyright, Patent, Trademark Or Trade Secret "Personal and advertising injury" arising out of the infringement of copyright, patent, trade- mark, trade secret or other intellectual property rights. However, this exclusion does not apply to in- fringement, in your "advertisement', of copy- right, trade dress or slogan. j. Insureds In Media And Internet Type Businesses "Personal and advertising injury" committed by an insured whose business is: (1) Advertising, broadcasting, publishing or telecasting; (2) Designing or determining content of web- sites for others; or (3) An Internet search, access, content or service provider. However, this exclusion does not apply to Paragraphs 14.a., b. and c. of "personal and advertising injury" under the Definitions Sec- tion. For the purposes of this exclusion, the placing of frames, borders or links, or advertising, for you or others anywhere on the Internet, is not by itself, considered the business of advertis- ing, broadcasting, publishing or telecasting. k. Electronic Chatrooms Or Bulletin Boards "Personal and advertising injury" arising out of an electronic chatroom or bulletin board the in- sured hosts, owns, or over which the insured exercises control. Unauthorized Use Of Another's Name Or Product "Personal and advertising injury" arising out of the unauthorized use of another's name or product in your e-mail address, domain name or metatag, or any other similar tactics to mis- lead another's potential customers. Page 6 of 16 © ISO Properties, Inc., 2003 CG 00 01 12 04 ? (5) That particular part of real property on which you or any contractors or subcontrac- tors working directly or indirectly on your behalf are performing operations, if the "property damage" arises out of those op- erations; or (6) That particular part of any property that must be restored, repaired or replaced be- cause "your work" was incorrectly per- formed on it. Paragraphs (1), (3) and (4) of this exclusion do not apply to "property damage" (other than damage by fire) to premises, including the con- tents of such premises, rented to you for a pe- riod of 7 or fewer consecutive days. A separate limit of insurance applies to Damage To Prem- ises Rented To You as described in Section III - Limits Of Insurance. Paragraph (2) of this exclusion does not apply 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 apply 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. 1. 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 sub- contractor. 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 danger- ous condition in "your product" or "your work"; or (2) A delay or failure by you or anyone acting 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 ac- cidental physical injury to "your product" or "your work" after it has been put to its intended use. n. Recall Of Products, Work Or Impaired Property Damages claimed for any loss, cost or ex- pense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, re- placement, adjustment, removal or disposal of: (1) "Your product"(2) "Your work"; or (3) "Impaired property"; if such product, work, or property is withdrawn 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. o. Personal And Advertising Injury "Bodily injury" arising out of "personal and ad- vertising injury". p. Electronic Data Damages arising out of the loss of, loss of use of, damage to, corruption of, inability to access, or inability to manipulate electronic data. As used in this exclusion, electronic data means information, facts or programs stored as or on, created or used on, or transmitted to or from computer software, including systems and applications software, hard or floppy disks, CD-ROMS, tapes, drives, cells, data process- ing devices or any other media which are used with electronically controlled equipment. 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 Section III - Limits Of Insurance. 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 and advertising injury" 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 "per- sonal and advertising injury" to which this in- surance does not apply. We may, at our discre- tion, investigate any offense 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 - Limits Of Insurance; and CG 00 01 12 04 0 180 Properties, Inc., 2003 Page 6 of 16 0 (2) Any loss, cost or expense arising out of any: (a) Request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean up, re- move, 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 gov- ernmental authority for damages be- cause of testing for, monitoring, cleaning up, removing, containing, treating, de- toxifying or neutralizing, or in any way responding to, or assessing the effects of, "pollutants". However, this paragraph does not apply to liability for damages because of "property damage" that the insured would have in the absence of such request, demand, order or statutory or regulatory requirement, or such claim or "suit" by or on behalf of a govern- mental authority. g. Aircraft, Auto Or Watercraft "Bodily injury" or "property damage" arising out of the ownership, maintenance, use or en- trustment to others of any aircraft, "auto" or wa- tercraft owned or operated by or rented or loaned to any insured. Use includes operation and "loading or unloading". This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employ- ment, training or monitoring of others by that insured, if the "occurrence" which caused the "bodily injury" or "property damage" involved the ownership, maintenance, use or entrust- ment to others of any aircraft, "auto" or water- craft that is owned or operated by or rented or loaned to any insured. 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 (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; (5) "Bodily injury" or "property damage" arising out of: (a) The operation of machinery or equip- ment that is attached to, or part of, a land vehicle that would qualify under the definition of "mobile equipment" if it were not subject to a compulsory or fi- nancial responsibility law or other motor vehicle insurance law in the state where it is licensed or principally garaged; or (b) the operation of any of the machinery or 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 prepared for, any prearranged racing, speed, demolition, or stunting activity. 1. War "Bodily injury" or "property damage", however caused, arising, directly or indirectly, out of., (1) War, including undeclared or civil war; (2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any govern- ment, sovereign or other authority using military personnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental au- thority in hindering or defending against any of these. j. Damage To Property "Property damage" to: (1) Property you own, rent, or occupy, including any costs or expenses incurred by you, or any other person, organization or entity, for repair, replacement, enhancement, restora- tion or maintenance of such property for any reason, including prevention of injury to a person or damage to another's property; (2) Premises you sell, give away or abandon, if the "property damage" arises out of any part of those premises; (4) Liability assumed under. any "insured con- (3) Property loaned to you; tract" for the ownership, maintenance or (4) Personal property in the care, custody or use of aircraft or watercraft; or control of the insured; Page 4 of 16 © ISO Properties, Inc., 2003 CG 00 01 12 04 ? f. Pollution (1) "Bodily injury" or "property damage" arising out of the actual, alleged or threatened dis- charge, dispersal, seepage, migration, re- lease 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, this subparagraph does not apply to: (1) "Bodily injury" if sustained within a building and caused by smoke, fumes, vapor or soot produced by or originating from equipment that is used to heat, cool or dehumidify the building, or equipment that is used to heat water for personal use, by the building's occupants or their guests; (ii) "Bodily injury" or "property damage" for which you may be held liable, if you are a contractor and the owner or lessee of such premises, site or location has been added to your pol- icy as an additional insured with re- spect to your ongoing operations performed for that additional insured at that premises, site or location and such premises, site or location is not and never was owned or occupied by, or rented or loaned to, any in- sured, other than that additional in- sured; or (III) "Bodily injury" or "property damage" arising out of heat, smoke or fumes from a "hostile fire"; (b) At or from any premises, site or location which is or was at any time used by or for any insured or others for the han- dling, storage, disposal, processing 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: (1) Any insured; or (ii) Any person or organization for whom you may be legally responsible; or (d) At or from any premises, site or location on which any insured or any contractors or subcontractors working directly or in- directly on any insured's behalf are per- forming operations if the "pollutants" are brought on or to the premises, site or lo- cation in connection with such opera- tions by such insured, contractor or sub- contractor. However, this subparagraph does not apply to: (1) "Bodily injury" or "property damage" arising out of the escape of fuels, lu- bricants or other operating fluids which are needed to perform the normal electrical, hydraulic or me- chanical functions necessary for the operation of "mobile equipment" or its parts, if such fuels, lubricants or other operating fluids escape from a vehicle part designed to hold, store or receive them. This exception does not apply if the "bodily injury" or "property damage" arises out of the intentional discharge, dispersal or re- lease of the fuels, lubricants or other operating fluids, or if such fuels, lu- bricants or other operating fluids are brought on or to the premises, site or location with the intent that they be discharged, dispersed or released as part of the operations being per- formed by such insured, contractor or subcontractor; (it) "Bodily injury" or "property damage" sustained within a building and caused by the release of gases, fumes or vapors from materials brought into that building in connec- tion with operations being performed by you or on your behalf by a con- tractor or subcontractor; or (ifi) "Bodily injury" or "property damage" arising out of heat, smoke or fumes from a "hostile fire". (e) At or from any premises, site or location on which any insured or any contractors or subcontractors working directly or in- directly on any insured's behalf are per- forming operations if the operations are to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the ef- fects of, "pollutants". G 00 01 12 04 0 ISO Properties, Inc., 2003 Page 3 of 16 ? e. Damages because of "bodily injury" include damages claimed by any person or organiza- tion for care, loss of services or death resulting at any time from the "bodily injury". 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 insured. This exclusion does not apply to "bodily injury" resulting from the use of reasonable 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) That the insured would have in the absence of the contract or agreement; or (2) Assumed in a contract or agreement that is an "insured contract", provided the "bodily injury" or "property damage" occurs subse- quent to the execution of the contract or agreement. Solely for the purposes of liabil- ity assumed in an "insured contract", rea- sonable attorney fees and necessary litiga- tion expenses incurred by or for a party other than an insured are deemed to be damages because of "bodily injury" or "property damage", provided: (a) Liability to such party for, or for the cost of, that party's defense has also been assumed in the same "insured contract"; and (b) Such attorney fees and litigation ex- penses are for defense of that party against a civil or alternative dispute resolution proceeding in which damages to which this insurance applies are al- leged. 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 un- der the influence of alcohol; or (3) Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alco- holic beverages. This exclusion applies only if you are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. 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 conduct of the insured's business; or (2) The spouse, child, parent, brother or sister of that "employee" as a consequence of Paragraph (1) above. This exclusion applies: (1) Whether the insured may be liable as an employer or in any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay dam- ages because of the injury. This exclusion does not apply to liability as- sumed by the insured under an "insured con- tract". Page 2 of 16 © ISO Properties, inc., 2003 CG 00 01 12 COMMERCIAL GENERAL LIABILITY CG 00011204 COMMERCIAL GENERAL LIABILITY COVERAGE FORM Various provisions in this policy restrict coverage. b. This insurance applies to "bodily injury" and Read the entire policy carefully to determine rights, "property damage" only it duties and what is and is not covered. (1) The "bodily injury" or "property damage" is Throughout this policy the words "you" and "your" caused by an "occurrence" that takes place refer to the Named Insured shown in the Declara- in the "coverage territory"; lions, and any other person or organization qualifying (2) The "bodily injury" or "property damage" as a Named Insured under this policy. The words .. " occurs during the policy period; and we , us and our refer to the company providing this insurance. (3) Prior to the policy period, no insured listed The word "insured" means any person or organization under Paragraph 1. Hof Section,If - Who Is An Insured and employee authorized qualifying as such under Section 11 - Who Is An In- r by you to give or receive notice of an "oc- sured. currence" or claim, knew that the "bodily in- Other words and phrases that appear in quotation jury" or "property damage" had occurred, in marks have special meaning. Refer to Section V - whole or in part. If such a listed insured or Definitions. authorized "employee" knew, prior to the SECTION 1--COVERAGES policy period, that the "bodily injury" or COVERAGE A BODILY INJURY AND PROPERTY "property damage" occurred, then any con- tinuation, change or resumption of such DAMAGE LIABILITY "bodily injury" or "property damage" during 1. Insuring Agreement or after the policy period will be deemed to a. We will pay those sums that the insured be- have been known prior to the policy period. comes legally obligated to pay as damages c. "Bodily injury" or "property damage" which because of "bodily injury" or "property damage" occurs during the policy period and was not, to which this insurance applies. We will have prior to the policy period, known to have oc- the right and duty to defend the insured against curred by any insured listed under Paragraph any "suit" seeking those damages. However, 1. of Section 11 - Who Is An Insured or any we will have no duty to defend the insured "employee" authorized by you to give or re- against any "suit" seeking damages for "bodily ceive notice of an "occurrence" or claim, in- injury" or "property damage" to which this in- cludes any continuation, change or resumption surance does not apply. We may, at our discre- of that "bodily injury" or "property damage" af- tion, investigate any "occurrence" and settle ter the end of the policy period. any claim or "suit" that may result. But: d. "Bodily injury" or "property damage" will be (1) The amount we will pay for damages is deemed to have been known to have occurred limited as described in Section III - Limits at the earliest time when any insured listed un- Of Insurance; and der Paragraph 1. of Section 11 - Who Is An In- (2) Our right and duty to defend ends when we sured or any "employee" authorized by you to " have used up the applicable limit of inuur- give or receive notice of an occurrence" or ance in the payment of judgments or set- claim: tlements under Coverages A or B or medi- (1) Reports all, or any part, of the "bodily injury" cal expenses under Coverage C. or "property damage" to us or any other in- No other obligation or liability to pay sums or surer; perform acts or services is covered unless ex- (2) Receives a written or verbal demand or plicitly provided for under Supplementary Pay- claim for damages because of the "bodily ments - Coverages A and B. injury" or "property damage"; or (3) Becomes aware by any other means that "bodily injury" or "property damage" has oc- curred or has begun to occur. CG 00 01 12 04 © ISO Properties, Inc., 2003 Page 1 of 16 ? PI-PEE-001 (12/98) b) $5,000 for trophy's, medals, jewelry, watches, watch movements, jewels, pearls, precious and semi-precious stones, bullion, gold, silver, platinum and other precious alloys or metals. This limit does not apply to jewelry and watches worth $100 or less per item. d) Section C - Limitations, Item 2., with respect to Glass is deleted. e) Section E - Additional Coverage Extensions is amended to add the following: 3. Building glass breakage. You may extend the insurance provided under this coverage part to cover the cost of: a. Repairing or replacing frames immediately encasing and contiguous to such glass when necessary because of such damage; b. Installing temporary plates in or boarding up openings containing such glass when necessary because of unavoidable delay in repairing or replacing such damaged glass; c. Removing or replacing any obstructions, other than window displays, when necessary in replacing such damaged glass, lettering or ornamentation. Damage to or destruction of the lettering and ornamentation of glass is covered by this coverage part, including loss caused by chemicals accidentally or maliciously applied. f) Section E - Additional Coverage Extensions., Item 1.C., Property in Transit is amended as follows: The most we will pay for loss or damage under this extension is $5,000 in any one occurrence. g) Section B - Exclusions, Item 1., Subsection E, with respect to Power Failure is deleted. h) Section E - Additional Coverage Extensions, is amended to add the following: 4. Off-premises Power Failure. You may extend the insurance provided under this coverage part to pay for loss or damage to covered property that results from the failure of power or other utility service supplied to the described premises. The power failure must: 1) result from a covered cause of loss, and 2) the failure must occur away from the described premises. This coverage extension does not apply to loss of income or extra expenses. The most we will pay for loss or damage under this extension is $25,000. i) Section B - Exclusions, Item 2., Subsection D.(7) (A) and (B) is deleted. j) Section B. Exclusions 1.(b) with respect to Earth Movement is amended as follows: Sprinkler Leakage is deleted from the exclusion. We will pay up to $10,000 for losses resulting from Sprinkler Leakage. 6. Other Insurance If there is other insurance covering the same loss or damage as provided for in this endorsement, 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 or not. However, we will not pay more than the applicable limit of insurance. Page 12 of 12 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-PEE=001 (12/98) 3. Additional Definitions a. "Banking Premises" means the interior of that portion of any building occupied by a banking institution or similar safe depository. b. "Messenger" means you, any of your partners or any "employee" while having care and custody of the property outside the "premises". c. "Occurrence" means an: (1) Act or series of related acts involving one or more persons; or (2) Act or event, or a series of related acts or events not involving any person. d. "Premises" means the interior of that portion of any building you occupy in conducting your business. e. "Theft" means any act of stealing. r) Pair, Sets or Parts 1. Pair or Set: In case of "loss" to any part of a pair or set we may: a. Repair or replace any part to restore the pair or set to its value before the "loss"; or b. Pay the difference between the value of the pair or set before and after the "loss". 2. Parts: In case of a "loss" to any part of Covered Property consisting of several parts when complete, we will only pay for the value of the lost or damaged part. 3. The Building and Personal Property Coverage Form is amended as follows: a) Section C., Limits of Insurance, is amended with respect to Signs as follows: The most we will pay for loss or damage to outdoor signs attached to buildings is $25,000 per sign in any one occurrence. 4. If you have purchased the Business Income Coverage Form, Section A., Coverage, Paragraph 4.c. (2) Is replaced as follows: 180 days expire after you acquire or begin construction on the property. 5. If you purchased the Causes of Loss - Special Form, it is amended as follows: a) Section B - Exclusions, Item 1., Subsection G.(3) with respect to Water Damage from Backup of Sewers and Drains is deleted. b) Section C - Limitations is amended to add the following: 7. For loss or damage from: a) water that backs up from a sewer or drain; or b) flood damage, the most we will pay is $10,000 per occurrence. c) Section C -- Limitations, Item 4: For loss or damage by theft, the following types of property are covered only up to the limits shown: a) $5,000 for furs, fur garments and garments trimmed with fur. Page 11 of 12 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-PEE-001 (12/98) Crime General Provisions, this Coverage Form is subject to the following: 1. Additional Exclusions: We will not pay for loss as specified below: a. Accounting or Arithmetical Errors or Omissions: Loss resulting from accounting or arithmetical errors or omissions. b. Acts of Employees, Directors, Trustees or Representatives: Loss resulting from any dishonest or criminal act committed by any of your "employees", directors, trustees or authorized representatives. (1) Acting alone or in collusion with other persons; or (2) While performing services for you or otherwise. c. Exchanges or Purchases: Loss resulting from the giving or surrendering of property in any exchange or purchase. d. Fire: Loss from damage to the "premises" resulting from fire, however caused. e. Money Operated Devices: Loss of property contained in any money operated device unless the amount of "money" deposited in it is recorded by a continuous recording instrument in the device. f. Transfer or Surrender of Property (1) Loss of property after it has been transferred or surrendered to a person or place outside the "premises" or "banking premises'. (a) On the basis of unauthorized instructions; or (b) As a result of a threat to do: i. Bodily harm to any person; or ii. Damage to any property. (2) But, this exclusion does not apply under COVERAGE, Section 2. To loss of Covered Property while outside the 'premises' or "banking premises' in the care and custody of a "messenger" if you: (a) Had no knowledge of any threat at the time the conveyance began; or (b) Had knowlege of a threat at the time the conveyance began, but the loss was not related to the threat. g. Vandalism: Loss from damage to the "premises" or its exterior or to containers of Covered Property by vandalism or malicious mischief. h. Voluntary Parting of Title to or Possession of Property: Loss resulting from your, or anyone acting on your express or implied authority, being induced by any dishonest act to voluntarily part with title to or possession of any property. 2. Additional Condition Duties in the Event of Loss: If you have reason to believe that any loss of, or loss from damage to, Covered Property involves a violation of law, you must notify the police. Page 10 of 12 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-PEE-,Ml (121'68) benefit. b. "Occurrence" means all loss caused by, or involving, one or more "employees", whether the result of a single act or series of acts. q) Theft, Disappearance and Destruction Coverage Form A. Coverage: We will pay for loss of Covered Property resulting directly from the Covered Causes of Loss. 1. Section 1. - Inside The Premises a. Covered Property: "Money" and "securities" inside the "premises" or a "banking premises". b. Covered Causes of Loss (1) "Theft" (2) Disappearance (3) Destruction c. Coverage Extensions (1) Containers of Covered Property: We will pay for loss of, and loss from damage to, a locked safe, vault, cash register, cash box or cash drawer located in the "premises"resulting directly from an actual or attempted: (a) "Theft" of; or (b) Unlawful entry into those containers. (2) Premises Damage: We will pay for loss from damage to the "premises" or its exterior resulting directly from an actual or attempted "theft" of Covered Property if you are the owner of the "premises' or are liable for damage to it. 2. Section 2. - Outside the Premises a. Covered Property: "Money" and "securities" outside the "premises" in the care and custody of a "messenger". b. Covered Causes of Loss (1) "Theft" (2) Disappearance (3) Destruction c. Coverage Extensions Conveyance of Property By Armored Motor Vehicle Company: We will pay for loss of Covered Property resulting directly from the Covered Causes of Loss while outside the "premises" in the care and custody of an armored motor vehicle company. But, we will pay only for the amount of loss that you cannot recover: (1) Under your contract with the armored motor vehicle company; and (2) From any insurance or indemnity carried by, or for the benefit of customers of the armored motor vehicle company.. B. Additional Exclusions, Condition and Definitions: In addition to the provisions in the Page 9 of 12 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-PEE-001'(12/98) Covered Cause of Loss. 1. Covered Property: "Money", "securities", and "property of other than money and securities". 2. Covered Cause of Loss: "Employee Dishonesty". 3. Coverage Extension: Employees Temporarily Outside Coverage Territory: We will pay for loss caused by any "employee" while temporarily outside the territory specified in the Territory General Condition for a period not more than 90 days. B. Additional Exclusions, Condition and Definitions: In addition to the provisions in the Crime General Provisions, this Coverage Form is subject to the following: 1. Additional Exicusions: We will not pay for loss as specified below: a. Employee Cancelled Under Prior Insurance: loss caused by any "employee" of yours, or predecessor in interest of yours, for whom similar prior insurance has been canceled and not reinstated since the last such cancellation. b. Inventory Shortages: loss, or that part of any loss, the proof of which as to its existence or amount is dependent upon: (1) An inventory computation; or (2) A profit and loss computation. 2. Additional Condition Cancellation As to Any Employee: This insurance is canceled as to any "employee": a. Immediately upon discovery by: (1) You; or (2) Any of your partners, officers or directors not in collusion with the "employee"; of any dishonest act committed by that "employee" whether before or after becoming employed by you. b. On the date specified in a notice mailed to you. That date will be at least 30 days after the date of mailing. The mailing of notice to you at the last mailing address known to us will be sufficient proof of notice. Delivery of notice is the same as mailing. 3. Additional Definitions a. "Employee Dishonesty" in paragraph A.2. means only dishonest 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: (1) Cause you to sustain loss; and also (2) Obtain financial benefit (other than employee benefits earned in the normal course of employment, including: salaries, commissions, fees, bonuses, promotions, awards, profit sharing or pensions) for: (a) The "employee"; or (b) Any person or organization intended by the "employee" to receive that Page 8 of 12 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-PEE-Q111 (12/9-8) glassware. Bric-a-brac, porcelains and similar fragile articles, unless caused by: (i) The "Specified Causes of Loss"; (ii) Building glass breakage; (i) Earthquakes; or (ii) Floods. c) Dishonest or criminal acts by you, any of your partners, employees, directors, trustees, authorized representatives or anyone to whom you entrust the property for any purpose (other than a bailee for hire or carrier): (i) Acting alone or in collusion with others; or (ii) 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. d) 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. e) Any of the following: (i) Wear and tear; (ii) Rust, corrosion, fungus, decay, deterioration, hidden or latent defect or any quality in the property that causes it to damage or destroy itself; (iii) Nesting or infestation, or discharge or release of waste products or secretions by insects rodents; or (iv) Dampness or dryness of atmosphere or changes in or extremes in temperature. 2. The most we will pay in any one occurrence for loss or damage to "fine arts" caused resulting from any Covered Cause of Loss is: (i) The Limit of Insurance that applies to the lost or damaged "fine arts"; or (ii) $25,000; whichever is less. o) Spoilage (1) We will pay for direct physical loss or damage to your Business Personal Property within 1000 feet of the described premises caused by spoilage due to changes in, or humidity resulting from: a) Complete or partial interruption of electrical power to the described premisf condition beyond your control; or b) Mechanical breakdown or failure of heating, cooling or humidity control e nnnomfole Ot fH'Q rinernrihnrl nrer ;-e- PI-PEE-001 (12/98) glassware. Bric-a-brac, porcelains and similar fragile articles, unless caused by: (i) The "Specified Causes of Loss"; (ii) Building glass breakage; (i) Earthquakes; or (ii) Floods. c) Dishonest or criminal acts by you, any of your partners, employees, directors, trustees, authorized representatives or anyone to whom you entrust the property for any purpose (other than a bailee for hire or carrier): (i) Acting alone or in collusion with others; or (ii) 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. d) 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. e) Any of the following: (i) Wear and tear; (ii) Rust, corrosion, fungus, decay, deterioration, hidden or latent defect or any quality in the property that causes it to damage or destroy itself; (iii) Nesting or infestation, or discharge or release of waste products or secretions by insects rodents; or (iv) Dampness or dryness of atmosphere or changes in or extremes in temperature. 2. The most we will pay in any one occurrence for loss or damage to "fine arts" caused by or resulting from any Covered Cause of Loss is: (i) The Limit of Insurance that applies to the lost or damaged "fine arts"; or (ii) $25,000; whichever is less. o) Spoilage (1) We will pay for direct physical loss or damage to your Business Personal Property while at or within 1000 feet of the described premises caused by spoilage, due to changes in temperature or humidity resulting from: a) Complete or partial interruption of electrical power to the described premises due to condition beyond your control; or b) Mechanical breakdown or failure of heating, cooling or humidity control equipment or apparatus at the described premises. (2) Coverage does not apply to: a) The: (i) Manual disconnection of any heating, cooling or humidity control equipment or apparatus from the source of power; or (ii) deactivation of electrical power or current caused by the throwing of any switch or other device used to control the flow of electrical power or current. (iii) inability of an electric utility company or other power source to provide sufficient power due to government order or lack of fuel; (iv) inability of a power source at the described premises to provide sufficient power due to insufficient generating capacity to meet demand. (3) The most we will pay for loss or damage in any one occurrence is the lesser of the following: a) $25,000, unless a higher amount is shown in the declarations for spoilage; or b) The limit that applies to the lost or damaged property. (4) Deductible is shown in the declarations. Each of these extensions is additional insurance. Section F. Additional Conditions, Item 1, Coinsurance, does not apply to these extensions. p) Employee Dishonesty Coverage Form A. Coverage We will pay for loss of, and loss from damage to, Covered Property resulting directly from the Page 7 of 12 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-PEE-000 (12/98 We will also pay any Extra Expense to continue your normal operations: (a) at the described premises; or (b) at replacement premises or temporary locations; including: i) relocation expenses; and ii) costs to equip or operate the replacement or temporary locations. and, we will pay for any Extra Expense to minimize the suspension of your normal operations if you cannot continue them. "Extra Expense" means necessary expenses you incur that you would not have incurred had no direct physical loss or damage occurred to the property caused by or resulting from a covered cause of loss. "Business Income" includes loss of earnings resulting from a covered cause of loss including loss of rents, contingent Business Locations worldwide, stock in transit, Loss from off- premises power failure. Business Income is valued on an agreed amount basis. The most we will pay under this extension is $100,000 at each described premises h) Subparagraph H. With respect to Electronic Data Processing is added as follows: H. Electronic Data Processing Refer to forms for coverage: EDP-001 (12/90) EDP-002 (1/90) EDP-003 (1/90) EDP-004 (1/90) 'coverage under this form is extended to include electronic registration/admissions systems. $50,000 includes coverage for hardware, software, business income and extra expense. i) Subparagraph I. with respect to Fire Extinguisher Recharge is added as follows: 1. Fire Extinguisher Recharge You may extend the insurance provided by this coverage form to cover expenses you incur to recharge portable fire extinguishers, dry chemical, carbon dioxide, or liquid automatic fire extinguishing systems and the cost of resetting automatic fuel shut-off connections, if any of the above are discharged to fight a fire or are discharged due to a mechanical malfunction. The most we will pay for loss or damage under this extension is $1,000. No deductible shall apply to this coverage. j) Subparagraph J. with respect to Lock Replacement is added as follows: J. Lock Replacement You may extend the insurance provided by this coverage form to cover necessary expense to repair to replace exterior or interior door locks of a covered building: Page 5 of 12 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-PEE-001 (12/98) (c) Collection expenses in excess of your normal collection expenses that are made necessary by the loss; (d) Other reasonable expenses that you incur to reestablish your records of accounts receivable that result from direct physical loss or damage by any Covered Causes of Loss to your records of accounts receivable, including credit or charge card slips. (3) Accounts receivable loss payment will be determined as follows: (a) If you cannot accurately establish the amount of accounts receivable outstanding as of the time of loss, the following method will be used: (1) Determine the total of the average monthly amounts of accounts receivable for the 12 months immediately preceding the month in which the loss occurs; and (2) Adjust that total for any normal fluctuations in the amount of accounts receivable for the month in which the loss occurred or for any demonstrated variance from the average for that month. (b) The following will be deducted from the total amount of accounts receivable, however that amount is established: (1) The amount of the accounts for which there is no loss; and (2) The amount of the accounts that you are able to reestablish or collect; and (3) An amount to allow for probable bad debts that your are normally unable to collect; and (c) You will pay us the amount of all recoveries you receive for a loss paid by us. But any recoveries in excess of the amount we have paid belong to you. (4) Exclusions (a) We will not pay for a loss caused by or resulting from any of the following: (1) Alteration, falsification, concealment or destruction of records of accounts receivable done to conceal the wrongful giving, taking or withholding of money, securities or other property. This exclusion applies only to the extent of the wrongful giving, taking or withholding. (2) Bookkeeping, accounting or billing errors or omissions. (b) We will not pay for loss that requires any audit of records or any inventory computation to prove it factual existence. g) Subparagraph G - with respect to Business Income/Extra Expense is added as follows: G. Business Income/Extra Expense You may extend the insurance provided under this coverage form to cover Business Income/Extra Expense incurred when your covered building or business personal property listed on the Declarations is damaged by a covered cause of loss. Page 4 of 12 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-PEE-001 (12/90) c) Subparagraph C. with respect to Valuable Papers and Records is amended as follows: The most we will pay under this extension is $25,000 at each described premises. d) Subparagraph D. with respect to Property Off-Premises is amended as follows: The most we will pay for loss or damage under this extension is $50,000. e) Subparagraph E. with respect to Outdoor Property is replaced by: E. Outdoor Property You may extend the insurance provided by this coverage form to apply to your outdoor fences, radio and television antennas, signs, fencing and netting, outdoor lighting, outdoor pools and court surfaces, trees, shrubs, lawns and plants, including debris removal expense caused by or resulting from the following causes of loss if they are covered causes of loss: 1) Fire; 2) Lightning; 3) Explosion; 4) Riot or Civil Commotion; 5) Aircraft or Vehicles; 6) Vandalism and Malicious Mischief, or 7) Theft The most we will pay for loss or damage under this extension is $25,000. The following coverages are added to Section A. Coverage, Paragraph 5, Coverage Extensions: f) Subparagraph F - with respect to Accounts Receivable is added as follows: F. Accounts Receivable The most we will pay under this Coverage Extension is $25,000. (1) You may extend the insurance that applies to Your Business Personal Property to apply to your records of accounts receivable: (a) At a described premises or in or on a vehicle in transit between described premises; or (b) If the records must be removed from a described premises to protect them from the threat of a Covered Cause of Loss. We will pay for a loss while they are: (1) At a safe place away from your described premises; or (2) Being taken to and returned from that place. (2) The amounts due from your customers that you are unable to collect: (a) All amounts due from your customers that you are unable to collect; (b) Interest charges on any loan required to offset amounts you are unable to collect pending our payment of these amounts; Page 3 of 12 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-FLEE-001 (12/98) Furs $ 5,000 Precious Metals $ 5,000 Glass Included in building limit Property in Transit $ 5,000 Off Premises Power Failure $25,000 Dampness/Extremes of Temperature Deletions Excluded Earthquake Sprinkler Leakage $10,000 Employee Dishonesty $25,000 Theft, Disappearance, and Destruction $10,000 Pair, Sets or Parts Adjustment included Hostile Fire Included CG 21 55 his form is found in the G.L. endorsement section of your policy) 1. The Building and Personal Property Coverage Form is amended as follows with respect to Section A. Coverage, Section A.1.a.(5)(b) and Section A.1.b. are amended as follows: within 1250 feet of the described premises. Paragraph 4, Additional Coverages: a) Subparagraph d. Pollutant Clean Up and Removal is amended as follows: $25,000 limit. 2. The Building and Personal Property Coverage Form Is amended as follows with respect to Section A. Coverage, Paragraph 5, Coverage Extensions: a) Subparagraph a. (3) (b) with respect to Newly Acquired or Constructed Property is amended to read 180 days in lieu of 30 days. b) Subparagraph B. with respect to Personal Effects and Property of Others is replaced by: B. Personal Effects and Property of Others You may extend the insurance that applies to your business personal property to apply to: 1) Personal effects owned by you, your officers, your partners or your employees. This extension does not apply to loss or damage by theft. 2) Personal Property of Others in your care, custody or control. The most we will pay for loss or damage under 13.(1) of this extension is $5,000 per person and $10,000 at each described premises. The most we will pay under B.(2) of this extension is $10,000 at each described premises. Our payment for loss or damage to personal property of others under this extension will only be for the account of the owner of the property. Page 2 of 12 Includes copyright material of the Insurance services Office, Inc. used with its permission. PI-PEE-001 (12/98) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY PROPERTY ENHANCEMENT ENDORSEMENT This endorsement modifies insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM BUSINESS INCOME COVERAGE FORM CAUSES OF LOSS - SPECIAL FORM The following is a summary of increased limits of insurance and additional coverage provided by this endorsement. This endorsement is subject to the provisions of your policy and is applicable only to those premiums described in the Declarations where the Causes of Loss - Special Form applies. Note: additional limits may be secured for an additional premium. Pollutant Clean up and Removal $25,000 Newly Acquired Property 180 days Personal effects $ 5,000. Property of Others $10,000. Valuable Papers $25,000. Property Off Premises $50,000. Outdoor Property $25,000. Accounts Receivable $25,000 Business Income/Extra Expense $100,000. EDP Equipment $50,000. Fire Extinguisher Recharge $ 1,000 Lock Replacement $ 250. Reward Reimbursement $ 5,000 Inventory and Appraisals of Loss $ 1,000. Ordinance or Law Included up to the . building limit Fine Arts $25,000 Spoilage $25,000 Signs (Attached or Unattached) $25,000. Back-up of Sewers- Flood Damage $10,000 Page 1 of 12 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-NP-007 (04-01) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LOSS OF INCOME DUE TO WORKPLACE VIOLENCE This endorsement modifies and is subject to the insurance provided under the following: BUSINESS INCOME (AND EXTRA EXPENSE) COVERAGE FORM The following is added to Section A. Coverage, 3. Additional Coverages: e. Workplace Violence (1) Coverage: Loss of Business Income: We will pay for the actual loss of Business Income you sustain due to the suspension of your "operations" caused by any intentional use, or threat to use, deadly force by any person. The most we will pay under this coverage is $100,000. Extra Expense: Coverage is extended to include the cost of public relations consultants or other specialists to restore the insured's reputation following an incident of workplace violence. Additionally, coverage includes mental health counseling for employees. The most we will pay under this coverage is $5,000. (2) Loss Determination: Determination of the Business Income loss under this additional coverage will be calculated only for the location where the workplace violence occurred. Coverage will only be for the "period of restoration". Extra expense will apply even though operations have resumed. However, they will not apply after 60 days following the incident. All other terms and conditions remain the same. Page 1 of 1 B. EXCLUSIONS PI-tDP-004 (12-90) We will not pay for a loss caused directly or indirectly by any of the following. Such loss is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. 1. Any law or municipal code regulating construction, repair or demolition of buildings. 2. Suspension, lapse or cancellation of any lease, license, contract or order. 3. Strikers or other persons interfering with the repair or replacement of the loss, or damaged Covered Property, nor caused by strikers or other persons interfering with continuation of resumption of your normal operations. 4. Errors in programming or in instructions to machines. C. MANU'FACTURER'S WARRANTY OR SERVICE CONTRACT If you have a manufacturer's warranty or service contract covering the same loss as the insurance under this Coverage Form, we will pay only the excess over what you should have received from the warranty or service contract. D. LIMITS OF INSURANCE We will pay your necessary Extra Expense from the time of loss until the loss is repaired or replaced and normal operations resume, but the most we will pay for loss in any one occurrence is the applicable Limit of Insurance shown in the Schedule. You agree to resume normal operations (partial or complete) as soon as possible following a covered loss. If you purchase temporary equipment for use until you resume normal operations, we will subtract the actual value of such equipment as of the date normal operations resume from the total amount of your loss. E. DEDUCTIBLE We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds the Deductible shown in the Schedule. We will then pay the amount of loss or damage in excess of the Deductible, up to the applicable Limit of Insurance. Unless otherwise shown in the Schedule, the Deductible will be two (2) working days. Page 2 of 2 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-EDP-004 (12-90) This form applies in combination with the Common Policy Conditions, Common Inland Marine Conditions, Commercial Inland Marine Declarations and Electronic Equipment Coverage Declarations. ELECTRONIC EQUIPMENT COVERAGE FORM COVERAGE FORM C - EXTRA EXPENSE COVERAGE A.COVERAGE 1. This Coverage Form covers the necessary Extra Expense you incur in continuing your business or profession, after sustaining a direct physical covered loss of, or damage to, Covered Property insured under Coverage Form A or B of the Electronic Equipment Coverages. Extra Expense means any necessary operating expense over and above your normal cost of operating your data processing equipment or other electronic process associated with the Covered Property insured, had no loss occurred, to avoid or minimize the suspension of business and to continue operations as normal as possible. This Extra Expense may include: a. Rental of additional electronic equipment b. The cost of additional labor in order to continue operations as normal as possible; c. Rental of temporary replacement premises; d. The cost to equip and operate temporary replacement premises. 2. COVERAGE EXTENSIONS We will pay any Extra Expense you incur in continuing your business or profession, after loss or damage to: a. The building housing your data processing operation or other electronic process associated with the Covered Property; or b. The air conditioning system that services your data processing operation or other electronic process associated with the Covered Property; or c. The electrical system that services your data processing operation or other electronic process associated with the Covered Property. d. We will also pay any Extra Expense you incur in continuing your business profession, if you are prevented by civil authorities from entering the premises where your data processing operation or other electronic process associated with the Covered Property is located, because of damage to the adjacent premises. Our Liability under each of these Coverage Extensions is limited to Extra Expense described in A. 1. above. Page 1 of 2 Includes copyright material of the Insurance Services Office, Inc. used with its permission. F. VALUATION 1. Specifically Declared Items PI=EDP-003 (12-90) The value of each item of Covered Property that is specifically declared and described in the Schedule is the applicable Limit of Insurance for that item. 2. All Other Covered Property The value of all other Covered Property will be determined as of the time and place of loss using the actual replacement cost of the property similar to the Covered Property or the reproduction cost of the Covered Property, provided such property is replaced or reproduced. If you do not replace or reproduce the property, the value of such property will be the cost of blank media. In no event will our liability under 1, and 2. above exceed the Limits of Insurance shown in the Schedule. Page 3 of 3 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-EDP-003 (12-90) B. EXCLUSIONS We will not pay for a loss caused directly or indirectly by any of the following. Such loss is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. 1. Government Action Seizure or destruction of property by order of governmental authority. But we will pay for acts or destruction ordered by governmental authority and taken at the time of fire to prevent its spread if the fire would be covered under this Coverage Part. 2. Nuclear Hazard a. Any weapon employing atomic fission or fusion; or b. Nuclear reaction or radiation, or radioactive contamination from any other cause. But we will pay for direct loss caused by resulting fire is the fire would be covered under this Coverage Part. 3. War and Military Action a. War, including undeclared civil war b. Warlike action by military forces, including action in hindering or defending against an actual or expected attack, by any government authority in hindering or defending against any of these. 4. Delay, loss of market, loss of income, loss of use or any other cause of consequential loss. 5. Wear and tear, any quality in the Covered Property that causes it to damage or destroy itself, gradual deterioration, depredation or damage done by insects, vermin or rodents. But we will pay for direct loss caused by resulting fire or explosion if the fire or explosion would be covered under this Coverage Part. 6. Dishonest acts committed by you, anyone else with an interest in the Covered Property, or your or their employees, whether or not such an act occurs during the hours of employment. Nor will we pay for a loss caused by dishonest acts by anyone entrusted with the Covered Property, except a common carrier for hire. 7. Dryness, dampness, changes in temperature, corrosion or rust. But, if the air conditioning system that services the Covered Property is damaged by a Covered Cause of Loss we will pay for any direct loss caused by resulting fire or explosion if the fire or explosion would be covered under this Coverage Part. C. MANUFACTURER'S WARRANTY OR SERVICE CONTRACT If you have a manufacturer's warranty or service contract covering the same loss as the insurance under this Coverage Form, we will pay only the excess over what you should have received from the warranty or service contract. D. LIMITS OF INSURANCE The most we will pay for loss in any one occurrence is the applicable Limit of Insurance shown in the Schedule or Coverage Extensions contained in this Coverage Form. E. DEDUCTIBLE We will not pay for loss in any one occurrence until the amount of loss or damage exceeds the Deductible shown in the Schedule. We will then pay the amount of loss or damage in excess of the Deductible, up to the applicable Limit of Insurance. Page 2 of 3 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-EDP-003 (12-90) This form applies in combination with the Common Policy Conditions, Common Inland Marine Conditions, Commercial Inland Marine Declarations and Electronic Equipment Coverage Declarations. ELECTRONIC EQUIPMENT COVERAGE FORM COVERAGE FORM B - ELECTRONIC DATA MEDIA A. COVERAGE 1. Covered Property as used in this Coverage From means Data and Media listed in the section of the Schedule indicated with and "X". Data means information stored on media and includes facts, instructions, concepts and programs converted to a form useable in electronic data processing operations. Media means material on which data is recorded or stored, such as magnetic tapes, disc packs, paper tapes and cards used in processing units. The Covered Property must be either your property or property belonging to others, which is in your care and used by you in your business or profession. 2. Property Not Covered Covered Property under this Coverage From does not include: a. Accounts, records, documents and other valuable papers, except as they may be converted to data and stored on media, and then only in that converted form. b. Unscheduled data or media that cannot be replaced with similar property of equal quality. 3. Coverage Extensions Applicable to Coverage B - Data/Media a. Provided you store duplicate data at a separate premises and provided such data is not insured elsewhere under this or any other insurance policy, we will cover that data at each such storage location. The most we will pay under this Coverage Extension is $50,000 in any one loss. b. We will also pay for loss to Covered Property while temporarily located away from your premises and while in transit within: 0) The United States of America; (2) Puerto Rico; and (3) Canada. The most we will pay under this Coverage Extension is $10,000 in any one loss. c. We will continue to cover your Covered Property while being transferred to and while at a temporary safe storage location, used to avoid imminent loss. You are required, however, to provide us with written notice within 10 days following such move. 4. Covered Causes of Loss Covered Causes of Loss means risk of direct physical loss to Covered Property except those causes of loss listed in the Exclusions. Page 1 of 3 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-EDP-002 (12-90) D. LIMITS OF INSURANCE The most we will pay for loss in any one occurrence is the applicable Limit of Insurance shown in the Schedule or Coverage Extensions contained in this Coverage Form. E. DEDUCTIBLE We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds the Deductible shown in the Schedule. We will then pay the amount of loss or damage in excess of the deductible, up to the applicable Limit of Insurance. F. VALUATION Your choice of valuation is indicated in the Schedule and is one of the following: 1. Actual Cash Value if you chose Actual Cash Value, the value of the Covered Property will be determined as of the time and place of loss using the actual cash value of such property. The loss shall be adjusted based on the actual cash value and shall include an allowance for depreciation. 2. Replacement Cost If you chose Replacement Cost, the value of Covered Property will be determined at the time of loss using the actual replacement cost of property similar to the Covered Property. In no event will our liability under 1. and 2. above exceed the cost to repair or replace the property with similar property of equal value or the limit of insurance shown in the Schedule or Coverage Extensions whichever is less. G. COINSURANCE All Covered Property, except property in transit, must be insured for at least 80% of its total value as of the time of loss or you will incur a penalty. The penalty is that we will pay only the proportion of any loss that the Limit of Insurance applicable to the Covered Property and shown in the Schedule bears to 80%, unless a different amount is shown in the Schedule, of the total value of all your Covered Property under this Coverage Form at the time of loss. Total value of your Covered Property shall be determined in accordance with the Valuation provisions (Item F.) of this Coverage Form. H. DIFFERENCE IN CONDITIONS You must furnish us with a copy of any lease or rental agreement on Covered Property you lease or rent from others within thirty (30) days of entering into such agreement. In the event of loss to leased or rented Covered Property we will only liable for the difference between the liability assumed by the lessors for loss and what would otherwise be covered by this Coverage Form. Page 4 of 4 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-EDP-002 (12-90) B. EXCLUSIONS We will not pay for a loss caused directly or indirectly by any of the following. Such loss is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. 1. Government Action Seizure or destruction of property by order of governmental authority. But we will pay for acts or destruction ordered by governmental authority and taken at the time of a fire to prevent its spread if the fire would be covered under this Coverage Form. 2. Nuclear Hazard a. any weapon employing atomic fission or fusion; or b. Nuclear reaction or radiation, or radioactive contamination from any other cause. But we will pay for direct loss caused by resulting fire if the fire would be covered under this Coverage Form. 1 War and Military Action a. War, including undeclared or Civil war; b. Warlike action by military forces, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or c. Insurrection, rebellion, revolution, usurped powers or action taken by govemment authority in hindering or defending against any of these. 4. Delay, loss of market, loss of income, loss of use or any other cause of consequential loss. & Wear and tear, any quality in the Covered Property that causes it to damage or destroy itself, gradual deterioration, depreciation or damage done by insects, vermin or rodents. But we will pay for direct loss caused by resulting fire or explosion if the fire or explosion would be covered under this Coverage Form. 6. Dishonest acts committed by you, anyone else with an interest in the Covered Property, or your or their employees, whether or not such an act occurs during the hours of employment. Nor will we pay for a loss caused by dishonest acts by anyone entrusted with the Covered Property, except a common carrier for hire. 7. Dryness, dampness, changes in temperature, corrosion or rust. But, if the air conditioning system that services the Covered Property is damaged by a Covered Cause of Loss we will pay for any direct resulting damage to Covered Property. 3. Breakage of tubes, bulbs, lamps or articles made of glass. But we will pay for such loss caused directly by fire, lightning, explosion, windstorm, earthquake, flood, vandalism, aircraft, rioters, strikers, theft or attempted theft, or by accident to vehicles carrying the Covered Property. 9. Processing or work performed upon the covered Property. But we will pay for direct loss caused by resulting fire or explosion if the fire or explosion would be covered under this Coverage Form. C. MANUFACTURER'S WARRANTY OR SERVICE CONTRACT If you have a manufacturer's warranty or service contract covering the same loss as the insurance under this Coverage Form, we will pay only the excess over what you should have received from the warranty or service contract. Page 3 of 4 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-EDP-002 (12-90) c. We will continue to cover your Covered Property while being transferred to and while at a temporary safe storage location, used to avoid imminent loss. You are required, however, to provide us with written notice within 10 days following such move. d. We will also pay for expenses you incur for the removal of debris provided: (1) The debris is covered Property; (2) The cause of loss is not excluded by this Coverage Form; and (3) The debris is located at a location scheduled in this policy. The most we will pay under this Coverage Extension is $50,000., in any one loss, but not to exceed $50,000, combined if both Coverage Form A and B are involved in the same occurrence. e. We will also pay 80% of the actual rental cost for replacement electronic equipment, beginning forty-eight (48) hours after a covered loss has occurred to Covered Property shown in the Schedule, provided such equipment will assist in continuing operations at nearly normal capacity. This Coverage Extension will end when the covered loss has been settled or when the amount of coverage provided under this Coverage Part is exhausted, whichever occurs first. The most we will pay for this Coverage Extension is $10,000., in any one loss. f. We will also pay you for the expense you incur in recharging or refilling fire protection devices which are designed specifically to protect the Covered Property scheduled under this Coverage Form, when these devices have been used in protecting such property from a covered loss. The most we will pay under this Coverage Extension is $25,000., in any one loss. g. We will also pay for damage caused directly by theft or attempted theft to: (1) That part of any building containing Covered Property; (2) Equipment within the building used to maintain or service the building, But only if you own the building or are legally responsible for the damage. But we will not pay for damage: (1) Caused by fire; or (2) To glass or to lettering or artwork on glass. The most we will pay under this Coverage Extension is $5,000., in any one loss. 4. Covered Causes of Loss Covered Causes of Loss means risk of direct physical loss to Covered Property except those causes of loss listed in the Exclusions. Page 2 of 4 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PI-EDP-002 (12-90) This form applies in combination with the Common Policy Conditions, Common Inland Marine Conditions, Commercial Inland Marine Declarations and Electronic Equipment Coverage Declarations. ELECTRONIC EQUIPMENT COVERAGE FORM COVERAGE FORM A - ELECTRONIC EQUIPMENT A. COVERAGE 1. Covered Property as used in this Coverage Form means Electronic Equipment listed in the Schedule. The Covered Property must be either your property or property belonging to others, which is in your care and used by you in your business or profession. 2. Property Not Covered Covered Property under this Coverage Form does not include: a. Data or Media; Data means information stored on media and includes facts, instructions, concepts and programs converted to a form useable in electronic data processing operations. Media means materials on which data is recorded or stored, such as magnetic tapes, disc packs, paper tapes and cards used in processing units; b. Accounts, records, documents and other valuable papers; c. Property of yours that you have rented, leased or loaned to someone else. 3. Coverage Extensions applicable to Coverage A - Equipment a. Provided you report to us within 60 days of acquisition and pay additional premium as may be required, we will pay for loss to: (1) Newly acquired Electronic Equipment located at the premises listed in the Declarations; and (2) Electronic Equipment located at newly acquired premises. It is understood that Coverage Extensions (1) and (2) above will not apply if you fail to report such new acquisitions to us within the required 60-day period. The most we will pay under this Coverage Extension is $250,000., in any one loss. b. We will also pay for loss to Covered Property while temporarily located away from your premises and while in transit within: (1) The United States of America; (2) Puerto Rico; and (3) Canada The most we will pay under this Coverage Extension is $10,000., in any one loss. Page 1 of 4 Includes copyright material of the Insurance Services Office, Inc. used with its permission. PkBM-001(10103 ) the Schedule above could have been repaired or replaced with reasonable speed and similar quality. 11. "Power Generating Equipment" means any pressure, mechanical or electrical equipment, machinery, apparatus used in, or associated with, the generation of electric power; but it does not include emergency power generating equipment less than or equal to 1000kw. 12. "Production Machines" means any production or process machine or apparatus that processes, forms, cuts, shapes, or grinds raw materials, materials in process or finished products, including all "Covered Equipment"that is used solely with and/or forms an integral part of the production or process or apparatus. But "Production Machines" does not include any: a. Pressure vessel or vacuum vessel, other than any cylinder containing a movable plunger or piston; or b. Pump, compressor, fan or blower that conveys raw materials, materials in process or finished products; or c. Separate enclosed gear set connected by a coupling, clutch or belt; or d. Separate driving electrical or mechanical machine connected by a coupling clutch or belt. 13. "Total Limit per One Breakdown" means the total maximum amount payable for all coverages provided under this Endorsement as the result of "One Breakdown". ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED. Page 10 of 10 PI-BM-661('10/03i (4) Non-metallic pressure or vacuum equipment, unless it is constructed and used in accordance with the American Society of Mechanical Engineers (A.S.M.E.) code or a Code that has been accepted by the National Board of Boiler and Pressure Vessel Inspectors; or (5) Catalyst; or (6) Pressure vessels and piping that are buried below ground and require the excavation of materials to inspect, remove, repair or replace; or (7) Structure, foundation, cabinet or compartment supporting or containing the "Covered Equipment" or part of the "Covered Equipment" including penstock, draft tube or well casing; or (8) Vehicle, aircraft, self-propelled equipment or floating vessel, including any "Covered Equipment" mounted on or used solely with any vehicle, aircraft, self-propelled equipment or floating vessel; or (9) Dragline, power shovel, excavation or construction equipment including any "Covered Equipment" mounted on or used solely with any dragline, power shovel, excavation or construction equipment; or (10) Elevator or escalator, but not excluding any electrical machine or apparatus mounted on or used with this equipment; or (11) Felt, wire, screen, mold, form, pattern, die, extrusion plate, swing hammer, grinding disc, cutting blade, non-electrical cable, chain, belt, rope, clutch plate, brake pad, non-metal part or any part or tool subject to periodic replacement; or (12) Astronomical telescope, cyclotron, nuclear reactor, particle accelerator, satellites and/or spacecraft (including satellite or spacecraft contents and/or their launch sites); or (13) "Diagnostic Equipment"; or (14) "Power Generating Equipment"; or (15) "Production Machines" ;or (16) Equipment or any part of equipment manufactured by you for sale. 4. "Covered Property" means any property that you own, or is in your care, custody or control and for which you are legally liable, while located at the Covered Premises described in the Equipment Breakdown Protection Schedule. "Covered Property" does not mean live mammals, fish, birds, reptiles or insects. It also does not mean eggs intended to become live mammals, fish, birds, reptiles or insects. 5. "Data" means: programmed and recorded material stored on "Media" and programming records used for electronic data processing, or electronically controlled equipment. 6. "Diagnostic Equipment" means any machine or apparatus (other than astronomical telescopes, cyclotron, nuclear reactor or particle accelerator) used solely for research, diagnosis, medical, surgical, therapeutic, dental or pathological purposes. 7. "Hazardous Substance" means any substance, other than ammonia, that has been declared to be hazardous to health by a governmental agency. 8. "Media" means electronic data processing or storage material such as films, tapes, discs, drums or cells. 9. "One Breakdown" means if an initial "Breakdown" causes other "Breakdowns", all will be considered "One Breakdown". All "Breakdowns" at any one location that manifest themselves at the same time and are the result of the same cause will be considered "One Breakdown". If an initial "Breakdown" causes other "Breakdowns", all will be considered "One Breakdown". 10. "Period of Restoration" means the period of time that: a. Begins at the time of the "Breakdown"; and b. Ends the number of consecutive days indicated in the Equipment Breakdown Protection Schedule after the date when the damaged property at the Covered Premises described in Page 9 of 10 PI-BM-001(10/03) (3) For finished goods,.the selling price, as if no loss or damage had occurred, less any discounts you offered and expenses you otherwise would have had. f. Pair, Sets or Parts As otherwise provided in the policy. F. DEFINITIONS As respects coverage provided under this Endorsement only, the following are added: "Breakdown" a. "Breakdown" means the following direct physical loss that causes physical damage to "Covered Equipment" and necessitates its repair or replacement: (1) Failure of pressure or vacuum equipment; or (2) Mechanical failure including rupture or bursting caused by centrifugal force; or (3) Electrical failure including arcing; unless such loss or damage is otherwise excluded within this Policy or any Endorsement forming a part of this Policy. b. "Breakdown does not mean or include: (1) Malfunction including but not limited to adjustment, alignment, calibration, cleaning or modification; or (2) Defects, erasures, errors, limitations or viruses in "Computer Equipment', "Data", "Media" and/or programs including the inability to recognize and process any date or time or provide instructions to "Covered Equipment". However, if a "Breakdown" ensues, we will pay the ensuing loss or damage not otherwise excluded; or (3) Leakage at any valve, fitting, shaft seal, gland packing, joint or connection; or (4) Damage to any vacuum tube, gas tube, or brush; or (5) Damage to any structure or foundation supporting the "Covered Equipment" or any of its parts; or (6) The functioning of any safety or protective device; or (7) The cracking of any part on an internal combustion gas turbine exposed to the products of combustion. 2. "Computer Equipment" means your programmable electronic equipment that is used to store, retrieve and process data; and associated peripheral equipment that provides communication including input and output functions such as printing or auxiliary functions such as data transmission. It does not include "Data" or "Media". "Covered Equipment" a. "Covered Equipment" means and includes any: (1) Equipment designed and built to operate under internal pressure or vacuum other than weight of contents; (2) For any boiler or fired vessel, the furnace of the "Covered Equipment" and the gas passages from there to the atmosphere will be considered as outside the "Covered Equipment"; or (3) Electrical or mechanical equipment that is used in the generation, transmission or utilization of energy; or (4) Communication equipment and "Computer Equipment"; or (5) Fiber optic cable. b. "Covered Equipment" does not mean or include any: (1) "Media"; or (2) Part of pressure or vacuum equipment that is not under internal pressure of its contents or internal vacuum; or (3) Insulating or refractory material; or Page 8 of 10 PI-BM-0l11(10/031 E. CONDITIONS As respects coverage provided under this Equipment Breakdown Protection endorsement only, the following shall apply: 1. Inspection We have the right but are not obligated to make inspections and surveys at any time, give you reports on the conditions we find, and recommend changes. Any inspections, surveys, reports or recommendations relate only to insurability and the premiums to be charged. We do not make safety inspections. We do not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. And we do not warrant that conditions are safe or healthful; or comply with laws, regulations, codes or standards. 2. Suspension: Whenever "Covered Equipment" is found to be in, or exposed to, a dangerous condition, any of our representatives may immediately suspend the coverage provided by this Equipment Breakdown Protection endorsement. We will deliver or mail a written notice of suspension to your last known address or the address where the "Covered Equipment" is located. Once suspended in this way, your coverage can be reinstated only by an endorsement for that "Covered Equipment". If we suspend your coverage, you will get a pro rata refund of premium for that "Covered Equipment". But the suspension will be effective even if we have not yet made or offered a refund. 3. Valuation a. We will pay the amount you spend to repair or replace "Covered Property" with other property of like kind, quality and capacity if such "Covered Property" is directly damaged by a "Breakdown" to "Covered Equipment". Our payment will. be the smallest of: (1) The cost to repair the damaged property; or (2) The cost to replace the damaged property; or (3) The amount you actually spend that is necessary to repair or replace the damaged property. But we will not pay for such damaged property that is obsolete or useless to you. b. If "Covered Equipment" cannot be repaired or the cost to repair is more than the cost to replace, and the damage to the "Covered Equipment" equals or exceeds 100% of the actual cash value of the "Covered Equipment", you may choose to apply the following provision. New Generation Coverage - If you want to replace damaged "Covered Equipment" with a newer generation "Covered Equipment" of the same capacity, we will pay up to 25% more than "Covered Equipment" of like kind, quality and capacity would have cost at the time of the "Breakdown", c. Except for New Generation Coverage, you must pay the extra cost of replacing damaged property with property of a better kind or quality or of a larger capacity. d. If any damaged "Covered Property", that is intended for your use, is protected by an extended warranty, or maintenance or service contract; and that warranty or contract becomes void or unusable due to a "Breakdown"; we will reimburse you for the prorated amount of the unused costs of non-refundable, non-transferable warranties or contracts. e. We will determine the value of "Covered Property" under Spoilage Damage Coverage as follows: (1) For raw materials, the replacement cost; (2) For goods in process, the replacement cost of the raw materials, the labor extended and the proper proportion of overhead charges; and Page 7 of 10 PI-BM-001(10/03) a. A deductible is shown as Combined for any of the coverages in the Equipment Breakdown Protection Schedule, then we will first subtract the combined deductible amount from the aggregate amount of any loss to which the combined deductible applies; or b. More than one "Covered Equipment" is involved in "One Breakdown", then only one deductible, the highest, shall apply to each of the applicable coverages. 2. Determination of Deductibles a. Dollar Deductible If a dollar deductible is shown in the Equipment Breakdown Protection Schedule, we will first subtract the deductible amount from a loss we would otherwise pay. b. Multiple per Unit Deductible If a multiple of units is shown in the Equipment Breakdown Protection Schedule, the deductible will be calculated as the sum of the multiplier times the number of units specified. (For example: if the deductible is specified as $25/hp for air conditioning units, and a covered 500 hp air conditioning unit suffered a "Breakdown", the deductible will be $25 times 500 hp which equals $12,500.) c. Time Deductible If a time deductible is shown in the Equipment Breakdown Protection Schedule, we will not be liable for any loss under that coverage that occurs during the specified time period immediately following a "Breakdown". If a time deductible is shown in days, each day shall mean twenty-four consecutive hours. d. Multiple of Daily Value Deductible If a multiple of daily value is shown in the Equipment Breakdown Protection Schedule, this deductible will be calculated as follows: (1) For the entire Covered Premises where the loss occurred, determine the total amount of "Business Income" that would have been earned during the "Period of Restoration" had no "Breakdown" taken place. (2) Divide the result in Paragraph (1) by the number of days the business would have been open during the "Period of Restoration". The result is the daily value. (3) Multiply the daily value in Paragraph (2) by the number of daily value multiples shown in the Equipment Breakdown Protection Schedule. We will first subtract this deductible amount from any loss we would otherwise pay. We will then pay the amount of loss or damage in excess of the deductible, up to the applicable Limit of Insurance. e. Percentage of Loss Deductible If a deductible is expressed as a percentage of loss in the Equipment Breakdown Protection Schedule, we will not be liable for the indicated percentage of the gross amount of loss or damage (prior to the applicable deductible or coinsurance) insured under the applicable coverage. f. Minimum Or Maximum Deductible (1) If a minimum dollar amount deductible is shown in the Equipment Breakdown Protection Schedule; and the dollar amount of the Multiple per Unit, Multiple of Daily Value or the Percentage of Loss Deductible is less than the Minimum Deductible, then the Minimum Deductible amount shown in the Equipment Breakdown Protection Schedule will be the applicable deductible. (2) If a maximum dollar amount deductible is shown in the Equipment Breakdown Protection Schedule; and the dollar amount of the Multiple per Unit, Multiple of Daily Value or the Percentage of Loss Deductible is greater than the Maximum Deductible; then the Maximum Deductible amount shown in the Equipment Breakdown Protection Schedule will be the applicable deductible. Page 6 of 10 PI-BM-001(10/03) d. Loss caused by or resulting from: fire; combustion explosion; aircraft; civil commotion; collapse; freezing caused by cold weather; hail; impact of aircraft, missile or vehicle; lightning; molten material; objects falling from aircraft or missiles; riot; smoke; vandalism; vehicles; weight of snow, ice or sleet; or windstorm. e. An explosion. However, we will pay for direct loss or damage caused by an explosion of "Covered Equipment" of the following kind: steam boiler, electric steam generator; steam piping; steam turbine; steam engine; or gas turbine or any other moving or rotating machinery, when such explosion is caused by centrifugal force or mechanical breakdown. f. Depletion, deterioration, corrosion, erosion, wear and tear, rust, fungus, decay, wet or dry rot, or mold. However, if a "Breakdown" ensues, we will pay the ensuing loss or damage not otherwise excluded- g. Water or other means used to extinguish a fire, even when the attempt is unsuccessful. With respect to Business Income, Extra Expense and/or Utility Services-Direct Damage and Utility Services-Time Element coverages, the following additional exclusions will apply: (1) The business that would not or could not have been carried on if the "Breakdown" had not occurred; or (2) Your failure to use due diligence and dispatch to operate your business as nearly normal as practicable at the Covered Premises shown in the Equipment Breakdown Protection Schedule; or (3) The suspension, lapse or cancellation of a contract following a "Breakdown" extending beyond the time business could have resumed if the contract had not lapsed, been suspended or cancelled. With respect to Utility Services-Direct Damage and Utility Services-Time Element coverages, the following additional exclusions will apply: (1) Acts of sabotage; (2) Deliberate act(s) of load shedding by the supplying or distributing utility. C. LIMITS OF INSURANCE As respects coverage provided under this Endorsement only, the following is added: 1. The most we will pay for loss and expense arising from any "One Breakdown" is the amount shown as the "Limit per One Breakdown" in the Equipment Breakdown Protection Schedule. This limit applies to all coverages under Section A - Coverage, including Coverage Extensions. 2. The Limit of Insurance under each of the Coverage Extensions for loss or expense arising from any "One Breakdown" is the amount shown in the Equipment Breakdown Protection Schedule for that Coverage Extension. If two or more limits apply to the same portion of a loss we will only pay the smallest limit. D. DEDUCTIBLES As respects coverage provided under this Endorsement only, the following shall apply: 1. Application of Deductibles We will not pay for loss or damage resulting from any "One Breakdown" until the amount of covered loss or damage exceeds the deductible shown in the Equipment Breakdown Protection Schedule. We will then pay the amount of covered loss or damage in excess of the deductible, up to the applicable Limit of Insurance. Deductibles apply separately for each applicable coverage except if: Page 5 of 10 PI-BM-001(10/03) k. Ordinance or Law (Including Demolition and Increased cost of Construction) If selected on the Equipment Breakdown Protection Schedule, coverage is provided per terms, conditions and exclusions found elsewhere in this Policy. Pollutant Clean Up and Removal If "Covered Property" is damaged, contaminated or polluted by a "Hazardous Substance" as a direct result of a "Breakdown" to "Covered. Equipment", we will pay for any additional expenses incurred by you for clean-up, repair, replacement or disposal of that property. As used here, additional expenses means the additional cost incurred over and above the amount that we would have paid had no "Hazardous Substance" been involved with the loss. Ammonia is not considered to be a "Hazardous Substance" as respects this limitation. If you have selected "Business Income" and/or "Extra Expense" coverages under this Equipment Breakdown Protection endorsement, we will also pay for any loss of "Business Income" or "Extra Expense" caused by such contamination. The maximum we will pay for damage to "Covered Property", "Business Income" and/or "Extra Expense" under this Coverage Extension shall be the Limit of Insurance indicated in the Equipment Breakdown Protection Schedule for Pollutant Clean Up and Removal. m. Time Element from Dependent Property If selected on the Equipment Breakdown Protection Schedule, coverage is provided per terms, conditions and exclusions found elsewhere in this Policy. n. Water Damage If "Covered Property" is damaged by water as a direct result of a "Breakdown" to "Covered Equipment" we will pay for this kind of damage, including salvage expense. B. EXCLUSIONS 1. As respects coverage provided under this Equipment Breakdown Protection Endorsement only, Exclusions B.2.a; 6.2.d.(6); B.2.e. and Limitations C.1.a. and C.1.b. of the Causes Of Loss Form attached to this policy are deleted. 2. The following exclusions are added as respects coverage provided under this Equipment Breakdown Protection Endorsement only. We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. a. Earth Movement Earth movement including, but not limited to, earthquake, landslide, land subsidence, mine subsidence, sinkhole collapse or volcanic action. Water (1) Flood, surface water, waves, tides, tidal waves, tsunami, overflow of any body of water, or their spray, all whether driven by wind or not; or (2) Mudflow or mudslides; or (3) Water damage caused by backup of sewers, drains, or drainage piping; or (4) Water damage caused by the discharge or leakage of a sprinkler system, sewer piping or domestic water piping. c. Damage to "Covered Equipment" undergoing any of the following tests: (1) A hydrostatic, pneumatic or gas pressure test of any boiler, fired vessel or electrical steam generator; or (2) An insulation breakdown test or any type of electrical or electronic "covered equipment". Page 4 of 10 PI-BM-001(10/03) (2) The "Covered Equipment" is used to supply air conditioning, communication services, electric power, gas, heating, refrigeration, steam, water or waste treatment to your Premises; and (3) The interruption of utility service to your Covered Premises lasts at least the consecutive period of time shown in the Equipment Breakdown Protection Schedule. e. Utility Services - Time Element If Utility Services - Time Element coverage is included under this Equipment Breakdown Protection Endorsement and Business Income and/or Extra Expense is also covered under this Endorsement, the selected coverage(s) are extended to include loss resulting from the interruption of utility services provided all of the following conditions are met: (1) The interruption is the direct result of a "Breakdown" to "Covered Equipment" owned, operated or controlled by the local private or public utility or distributor that directly generates, transmits, distributes or provides utility services which you receive; and (2) The "Covered Equipment" is used to supply air conditioning, communication services, electric power, gas, heating, refrigeration, steam, water or waste treatment to your Premises; and (3) The interruption of utility service to your Covered Premises lasts at least the consecutive period of time shown in the Equipment Breakdown Protection Schedule. f. Ammonia Contamination If "Covered Property" is contaminated by ammonia as a direct result of a "Breakdown" to "Covered Equipment", we will pay for this kind of damage, including salvage expense. g. "Data" Or "Media" Coverage It (1) you purchase "Data" or "Media" coverage under this Equipment Breakdown Protection endorsement; and (2) you have selected coverage for Business Income and/or Extra Expense under this Endorsement; and (3) "Media" is damaged or "Data" is lost or corrupted as a direct result of a "Breakdown" to "Covered Equipment", we will also pay your actual loss of "Business Income" and/or your "Extra Expenses" during the time necessary to: (1) Research, recreate, replace or restore the damaged "Media" or lost or corrupted "Data"; and (2) Reprogram instructions used in any covered "Computer Equipment". "there shall be no coverage for any "Data" or "Media" that cannot be replaced, recreated, or restored. The most we will pay under this Coverage Extension for "Business Income" and/or your "Extra Expense" incurred is the Limit of Insurance indicated for "Data" or "Media" coverage in the Equipment Breakdown Protection Schedule. h. Expediting Expense With respect to your damaged "Covered Property", we will pay the reasonable extra cost to: (1) Make temporary repairs; and (2) Expedite permanent repairs or permanent replacement. 1. Newly Acquired Property If selected on the Equipment Breakdown Protection Schedule, coverage is provided per terms, conditions and exclusions found elsewhere in this Policy. j. New Construction If selected on the Equipment Breakdown Protection Schedule, coverage is provided per terms, conditions and exclusions found elsewhere in this Policy. Page 3 of 10 P1=BM-001(10/03) A. COVERAGE As respects coverage provided under this Policy, the following coverage is added: 1. Equipment Breakdown Protection We will pay for direct physical damage caused by a "Covered Cause of Loss" to "Covered Property" located at the Covered Premises described in the Equipment Breakdown Protection Schedule. With regard to this Equipment Breakdown Protection endorsement only, "Covered Cause of Loss" is defined as "Breakdown" to "Covered Equipment". The most we will pay is the Limit of Insurance in the Equipment Breakdown Protection Schedule. 2. Coverage Extensions. As respects coverage provided under this Equipment Breakdown Protection endorsement only, the following is added: You may extend the insurance provided by this Equipment Breakdown Protection endorsement as follows. If coverage is selected on the Equipment Breakdown Protection Schedule, the most we will pay under these Coverage Extensions are the Limits of Insurance in such Schedule. These limits are a part of and not in addition to the "Total Limit per One Breakdown". These coverages apply only to that portion of the loss or damage that is a direct result of a "Breakdown" to "Covered Equipment" that is not excluded elsewhere in this Policy or this Equipment Breakdown Protection Endorsement. a. Business Income If selected on the Equipment Breakdown Protection Schedule, coverage is provided per terms, conditions and exclusions found elsewhere in this Policy. b. Extra Expense If selected on the Equipment Breakdown Protection Schedule, coverage is provided per terms, conditions and exclusions found elsewhere in this Policy. c. Spoilage Damage We will pay you for spoilage damage to raw materials, property in process or finished products provided all of the following conditions are met: (1) The raw material, property in process or finished products must be in storage or in the course of being manufactured; and (2) You must own or be legally liable under written contract for the raw materials, property in process or finished products; and (3) The spoilage damage must be due to the lack or excess of power, light, heat, steam or refrigeration. As respects spoilage damage caused by a "Breakdown" to "Covered Equipment" only, coverage provided under this Coverage Extension supercedes any other Spoilage coverage provided elsewhere in this policy. Utility Services - Direct Damage If Utility Services- Direct Damage coverage is included under this Equipment Breakdown Protection Endorsement and Spoilage Damage is also covered under this Endorsement, the selected coverage is extended to include loss resulting from the interruption of utility services provided all of the following conditions are met: (1) The interruption is the direct result of a "Breakdown" to "Covered Equipment" owned, operated or controlled by the local private or public utility or distributor that directly generates, transmits, distributes or provides utility services which you receive; and Page 2 of 10 PI-BM-001(10/03) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY EQUIPMENT BREAKDOWN PROTECTION ENDORSEMENT This endorsement modifies insurance provided under the following: PROPERTY COVERAGE PART EQUIPMENT BREAKDOWN PROTECTION SCHEDULE Premises: This endorsement applies to all Covered Premises specified elsewhere in the Policy. Coverages, Limits of Insurance and Options: insurance under this Endorsement applies only to coverages as set forth below. COVERAGE LIMIT OF INSURANCE DEDUCTIBLE "Total Limit per One Breakdown" Per the Property Coverage Part Declarations Per the Property Coverage Part Declarations Property Damage Included in Total Limit per One Breakdown Per the Property Coverage Part Declarations Business Income Per the Property Coverage Part Declarations Per the Property Coverage Part Declarations Business Income "Period of Restoration" Per the Property Coverage Part Declarations Per the Property Coverage Part Declarations Extra Expense Per the Property Coverage Part Declarations Per the Property Coverage Part Declarations Spoilage Damage $ 25,000 $1,000 Utility Services - Direct Damage Included in Spoilage N/A Coverage applies only if interruption lasts at least: 24 hours N/A Utility Services -Time Element Included in Business Income N/A Coverage applies only if interruption lasts at least: 24 hours N/A Ammonia Contamination $10,000 $1,000 "Data" or "Media" $10,000 _ $1,000 Expediting Expense $10,000 $1,000 Newly Acquired Locations Per the Property Coverage Part Declarations and/or Pro ertenhancement Per the Property Coverage Part Declarations and/or Pro ertenhancement New Construction $25000 $1,000 Ordinance or Law (Including Demolition and Increased Cost of Construction) _ Per the Property Coverage Part Declarations and/or Property enhancement Coverage follows the Property Coverage Part Declarations Pollutant clean U and Removal $10,000 $1,000 Time Element from Dependent Properties $10,000 $1,000 Water Damage $25,000 $1,000 ADDITIONAL COVERAGE EXTENSION, RESTRICTIONS, SPECIAL PROVISIONS: Page 1 of 10 (b) Cost of repairing the property or "premises"; or (c) Cost of replacing the property with property of like kind and quality. We may, at our option, pay the actual cash value of the property or repair or replace it. If we cannot agree with you upon the actual cash value or the cost of repair or replacement, the value or cost will be determined by arbitration. b. We may, at our option, pay for loss of, or loss from damage to, property other than "money": (1) In the "money" of the country in which the loss occurred; or (2) In the United States of America dollar equivalent of the "money" of the country in which the loss occurred determined by the rate of exchange on the day the loss was discovered. c. Any property that we pay for or replace becomes our property. C. GENERAL DEFINITIONS 1. "Employee" means: a. Any natural person: (1) While in your service (and for 30 days after termination of service); and (2) Whom you compensate directly by salary, wages or commissions; and (3) Whom you have the right to direct and control while performing services for you; or b. Any natural person employed by an em- ployment 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". But "employee" does not mean any: (1) Agent, broker, factor, commission mer- chant, consignee, independent contrac- tor or representative of the same gen- eral character; or (2) Director or trustee except while perform- ing acts coming within the scope of the usual duties of an employee. 2. "Money" means: a. Currency, coins and bank notes in current use and having a face value; and b. Travelers checks, register checks and money orders held for sale to the public. 3. "Property Other Than Money and Securi- ties" means any tangible property other than "money" and "securities" that has intrinsic value but does not include any property listed in any Crime Coverage Form as Property Not Covered. 4. "Securities" means negotiable and non- negotiable instruments or contracts represent- ing either "money" or other property and in- cludes: a. Tokens, tickets, revenue and other stamps (whether represented by actual stamps or unused value in a meter) in current use; and b. Evidences of debt issued in connection with credit or charge cards, which cards are not issued by you; but does not include "money". 'age 4 of 4 Copyright, Insurance Services Office, Inc., 1994 CR 10 00 06 96 ? I 4 15. Policy Period: 20. Valuation - Settlement: a. The Policy Period is shown in the Declara- a. Subject to the applicable Limit of Insurance tions. provision we will pay for: b. Subject to the Loss Sustained During Prior (1) Loss of "money" but only up to and Insurance condition, we will pay only for including its face value. We may, at our loss that you sustain through acts commit- option, pay for loss of "money" issued ted or events occurring during the Policy by any country other than the United Period. States of America: 16. Records: You must keep records of all Cov- (a) At face value in the "money" issued ered Property so we can verify the amount of by that country; or any loss. (b) In the United States of America 17. Recoveries: dollar equivalent determined by the a. Any recoveries, less the cost of obtaining rate of exchange on the day the loss them, made after settlement of loss cov- was discovered. ered by this insurance will be distributed as (2) Loss of "securities" but only up to and follows: including their value at the close of (1) To you, until you are reimbursed for any business on the day the loss was dis- loss that you sustain that exceeds the covered. We may, at our option: Limit of Insurance and the Deductible (a) Pay the value of such "securities" or Amount, if any; replace them in kind, in which event (2) Then to us, until we are reimbursed for you must assign to us all your rights, the settlement made; title and interest in and to those (3) Then to you, until you are reimbursed "securities"; or for that part of the loss equal to the De- ductible Amount, if any. Bond required in connection with is- b. Recoveries do not include any recovery: suing duplicates of the "securities". However, we will be liable only for (1) From insurance, suretyship, reinsur- the payment of so much of the cost ance, security or indemnity taken for our of the bond as would be charged for benefit; or a bond having a penalty not exceed- (2) Of original "securities" after duplicates ing the lesser of the: of them have been issued. (1) Value of the "securities" at the 18. Territory: This insurance covers only acts close of business on the day the committed or events occurring within the loss was discovered; or United States of America, U. S. Virgin Islands, (ii) Limit of Insurance. Puerto Rico, Canal Zone, or Canada: (3) Loss of, or loss from damage to, 19. Transfer of Your Rights of Recovery "property other than money and securi- Against Others to Us: You must transfer to ties" or loss from damage to the us all your rights of recovery against any per- "premises" for not more than the: son or organization for any loss you sustained (a) Actuai cash value of the property on and for which we have paid or settled. You the day the loss was discovered; must also do everything necessary to secure those rights and do nothing after loss to impair them. CR 10 00 06 95 Copyright, Insurance Services Office, Inc., 1994 Page 3 of 4 ? 6. Joint Insured: a. If more than one Insured is named in the Declarations, the first named Insured will act for itself and for every other Insured for all purposes of this insurance. If the first named Insured ceases to be covered, then the next named Insured will become the first named Insured. b. If any Insured or partner or officer of that Insured has knowledge of any information relevant to this insurance, that knowledge is considered knowledge of every Insured. c. An "employee" of any Insured is considered to be an "employee" of every Insured. d. If this insurance or any of its coverages is cancelled or terminated as to any Insured, loss sustained by that Insured is covered 11 only if discovered no later than one year from the date of that cancellation or termi- nation. e. We will not pay more for loss sustained by more than one Insured than the amount we would pay if all the loss had been sustained by one Insured. Legal Action Against Us: You may not bring any legal action against us involving loss: a. Unless you have complied with all the terms of this insurance; and b. Until 90 days after you have filed proof of loss with us; and c. Unless brought within 2 years from the date you discover the loss. 8. Liberalization: If we adopt any revision that would broaden the coverage under this insur- ance without additional premium within 45 days prior to or during the policy period, the broadened coverage will immediately apply to this insurance. 9. Loss Covered Under More Than One Cov- erage of This Insurance: If two or more cov- erages of this insurance apply to the same loss, we will pay the lesser of: a. The actual amount of loss; or b. The sum of the limits of insurance applica- ble to those coverages. 10. Loss Sustained During Prior Insurance a. If you, or any predecessor in interest, sus- tained loss during the period of any prior insurance that you or the predecessor in interest could have recovered under that insurance except that the time within which to discover loss had expired, we will pay for it under this insurance, provided: 12. 13. (1) This insurance became effective at the time of cancellation or termination of the prior insurance; and (2) The loss would have been covered by this insurance had it been in effect when the acts or events causing the loss were committed or occurred. b. The insurance under this Condition is part of, not in addition to, the Limits of Insur- ance applying to this insurance and is lim- ited to the lesser of the amount recoverable under: (1) This insurance as of its effective date; or (2) The prior insurance had it remained in effect. Loss Covered Under This Insurance and Prior Insurance Issued by Us or Any Affili- ate: If any loss is covered: a. Partly by this insurance; and b. Partly by any prior cancelled or terminated insurance that we or any affiliate had is- sued to you or any predecessor in interest; the most we will pay is the larger of the amount recoverable under this insurance or the prior insurance. Non-Cumulation of Limit of Insurance: Regardless of the number of years this insur- ance remains in force or the number of premi- ums paid, no Limit of Insurance cumulates from year to year or period to period. Other Insurance: This insurance does not apply to loss recoverable or recovered under other insurance or indemnity. However, if the limit of the other insurance or indemnity is in- sufficient to cover the entire amount of the loss, this insurance will apply to that part of the loss, other than that falling within any deducti- ble amount, not recoverable or recovered un- der the other insurance or indemnity. However, this insurance will not apply to the amount of loss that is more than the applicable Limit of Insurance shown in the Declarations. 14. Ownership of Property; Interests Covered: The property covered under this insurance is limited to property: a. That you own or hold; or b. For which you are legally liable. However, this insurance is for your benefit only. It provides no rights or benefits to any other person or organization. Page 2 of 4 Copyright, Insurance Services Office, Inc., 1994 CR 10 00 06 95 ? cow CRIME GENERAL PROVISIONS Various provisions in this policy restrict coverage. B. GENERAL CONDITIC Read the entire policy carefully to determine rights ' T a , duties and what is or is not covered. 1. Concealment, M Thi i i, cy? ras / e t a Throughout this policy the words "you" and "your" s nsurance you as it relate his a4 fhrs C a rs refer to the Named insured shown in the Declara- It is also voic' bons. The words "we", us and ours refer to the any time, intt Company providing this insurance. a material f Words and phrases in quotation marks are defined in a. This it the policy. b. The Unless stated otherwise in any Crime Coverage c Yof Form, Declarations or endorsement, the following . General Exclusions, General Conditions and General d. A Definitions apply to all Crime Coverage Forms form- 2. Co, ing part of this policy. dr A. GENERAL EXCLUSIONS We will not pay for loss as specified below: 1. Acts Committed by You or Your Partners: Loss resulting from any dishonest or criminal act committed by you or any of your partners whether acting alone or in collusion with other persons. 2. Governmental Action: Loss resulting from seizure or destruction of property by order of governmental authority. 3. Indirect Loss: Loss that is an indirect result, any act or "occurrence" covered by this ins ance including, but not limited to, loss resu' from: a. Your inability to realize incnmp tH COMMERCIAL PROPERTY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. TENTATIVE RATE The rates used in the development of the premium for the Commercial Property Coverage Part are tentative. We will adjust the premium effective from the inception date of this Coverage Part once the rates are promulgated. If this is a renewal of a policy previously issued by'us, we will adjust the premium effective from the renewal date of this Coverage Part once the rates are promulgated. CP 99 93 10 90 Copyright, ISO Commercial Risk Services, Inc., 1983, 1989 Page 1 of 1 11 C. LENDER'S LOSS PAYABLE 1. The Loss Payee shown in the Schedule or in the Declarations is a creditor, including a mort- gageholder or trustee, whose interest in Cov- ered Property is established by such written in- struments as: a. Warehouse receipts; b. A contract for deed; c. Bills of lading; d. Financing statements; or e. Mortgages, deeds of trust, or security agreements. 2. For Covered Property in which both you and a Loss Payee have an insurable interest: a. We will pay for covered loss or damage to each Loss Payee in their order of prece- dence, as interests may appear. b. The Loss Payee has the right to receive loss payment even if the Loss Payee has started foreclosure or similar action on the Covered Property. c. If we deny your claim because of your acts or because you have failed to comply with the terms of the Coverage Part, the Loss Payee will still have the right to receive loss payment if the Loss Payee: (1) Pays any premium due under this Cov- erage Part at our request if you have failed to do so; (2) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of your failure to do so; and (3) Has notified us of any change in owner- ship, occupancy or substantial change in risk known to the Loss Payee. All of the terms of this Coverage Part will then apply directly to the Loss Payee. d. If we pay the Loss Payee for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this Coverage Part: (1) The Loss Payee's rights will be trans- ferred to us to the extent of the amount we pay; and (2) The Loss Payee's rights to recover the full amount of the Loss Payee's claim will not be impaired. At our option, we may pay to the Loss Payee the whole principal on the debt plus any accrued interest. In this event, you will pay your remaining debt to us. 3. If we cancel this policy, we will give written notice to the Loss Payee at least: a. 10 days before the effective date of cancel- lation if we cancel for your nonpayment of premium; or b. 30 days before the effective date of cancel- lation if we cancel for any other reason. 4. If we elect not to renew this policy, we will give written notice to the Loss Payee at least 10 days before the expiration date of this policy. D. CONTRACT OF SALE 1. The Loss Payee shown in the Schedule or in the Declarations is a person or organization you have entered a contract with for the sale of Covered Property. 2. For Covered Property in which both you and the Loss Payee have an insurable interest we will: a. Adjust losses with you; and b. Pay any claim for loss or damage jointly to you and the Loss Payee, as interests may appear. 3. The following is added to the OTHER INSUR- ANCE Condition: For Covered Property that is the subject of a contract of sale, the word "you" includes the Loss Payee. Page 2 of 2 Copyright, ISO Commercial Risk Services, Inc., 1994 CP 12 18 06 95 ? POLICY NUMBER: PHPK193247 COMMERCIAL PROPERTY CP12180695 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LOSS PAYABLE PROVISIONS This endorsement modifies insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM BUILDERS' RISK COVERAGE FORM CONDOMINIUM ASSOCIATION COVERAGE FORM CONDOMINIUM COMMERCIAL UNIT-OWNERS COVERAGE FORM STANDARD PROPERTY POLICY SCHEDULE Provisions Applicable Prem. Bldg. Loss Lender's Contract No. No. Payable Loss Payable Of Sate 003 001 Description of Property 5303 Locust Ln Harrisburg, PA 17109-5525 A. When this endorsement is attached to the STAN- DARD PROPERTY POLICY CP 00 99 the term Coverage Part in this endorsement is replaced by the term Policy. X Loss Payee (Name & Address) Deutsch Financial Services 2337 Waukegen Road Pannockburn, IL 60015 B. LOSS PAYABLE For Covered Property in which both you and a Loss Payee shown in the Schedule or in the Dec- larations have an insurable interest, we will: The following is added to the LOSS PAYMENT Loss 1. Adjust losses with you; and Condition, as indicated in the Declarations or by an "X" in the Schedule: 2. Pay any claim for loss or damage jointly to you and the Loss Payee, as interests may appear. CP 12 18 06 95 Copyright,.ISO Commercial Risk Services, Inc., 1994 Page 1 of 2 Cl C. LENDER'S LOSS PAYABLE 1. The Loss Payee shown in the Schedule or in the Declarations is a creditor, including a mort- gageholder or trustee, whose interest in Cov- ered Property is established by such written in- struments as: a. Warehouse receipts; b. A contract for deed; c. Bills of lading; d. Financing statements; or e. Mortgages, deeds of trust, or security agreements. 2. For Covered Property in which both you and a Loss Payee have an insurable interest: a. We will pay for covered loss or damage to each Loss Payee in their order of prece- dence, as interests may appear. b. The Loss Payee has the right to receive loss payment even if the Loss Payee has started foreclosure or similar action on the Covered Property. c. If we deny your claim because of your acts or because you have failed to comply with the terms of the Coverage Part, the Loss Payee will still have the right to receive loss payment if the Loss Payee: (1) Pays any premium due under this Cov- erage Part at our request if you have failed to do so; d. If we pay the Loss Payee for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this Coverage Part: (1) The Loss Payee's rights will be trans- ferred to us to the extent of the amount we pay; and (2) The Loss Payee's rights to recover the full amount of the Loss Payee's claim will not be impaired. At our option, we may pay to the Loss Payee the whole principal on the debt plus any accrued interest. In this event, you will pay your remaining debt to us. 3. If we cancel this policy, we will give written notice to the Loss Payee at least: a. 10 days before the effective date of cancel- lation if we cancel for your nonpayment of premium; or b. 30 days before the effective date of cancel- lation if we cancel for any other reason. 4. If we elect not to renew this policy, we will give written notice to the Loss Payee at least 10 days before the expiration date of this policy. D. CONTRACT OF SALE 1. The Loss Payee shown in the Schedule or in the Declarations is a person or organization you have entered a contract with for the sale of Covered Property. (2) Submits a signed, sworn proof of loss 2. For Covered Property in which both you and within 60 days after receiving notice the Loss Payee have an insurable interest we from us of your failure to do so; and will: (3) Has notified us of any change in owner- a. Adjust losses with you; and ship, occupancy or substantial change in risk known to the Loss Payee. b. Pay any claim for loss or damage jointly to you and the Loss Payee, as interests may All of the terns of this Coverage Part will appear. then apply directly to the Loss Payee. 3. The following is added to the OTHER INSUR- ANCE Condition: For Covered Property that is the subject of a contract of sale, the word "you" includes the Loss Payee. Page 2 of 2 Copyright, ISO Commercial Risk Services, Inc., 1994 CP 12 18 06 95 ? POLICY NUMBER: PHPK193247 COMMERCIAL PROPERTY CP12180696 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LOSS PAYABLE PROVISIONS This endorsement modifies insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM BUILDERS' RISK COVERAGE FORM CONDOMINIUM ASSOCIATION COVERAGE FORM CONDOMINIUM COMMERCIAL UNIT-OWNERS COVERAGE FORM STANDARD PROPERTY POLICY SCHEDULE Provisions Applicable Prem. Bldg. Loss Lender's Contract No. No. Payable Loss Payable Of Sale 002 001 X Description of Property 6454 Carlisle Pike Mechanicsburg, PA 17050-2384 A. When this endorsement is attached to the STAN- DARD PROPERTY POLICY OP 00 99 the term Coverage Part in this endorsement is replaced by the term Policy. Loss Payee (Name & Address) Pennsylvania State Bank 2148 Market St Camp Hill, PA 17011-4706 B. LOSS PAYABLE For Covered Property in which both you and a Loss Payee shown in the Schedule or in the Dec- larations have an insurable interest, we will: The following is added to the LOSS PAYMENT Loss 1. Adjust losses with you; and Condition, as indicated in the Declarations or by an "X" in the Schedule: 2. Pay any claim for loss or damage jointly to you and the Loss Payee, as interests may appear. CP 12 18 06 95 Copyright, ISO Commercial Risk Services, Inc., 1994 Page 1 of 2 El 1 ? C. LENDER'S LOSS PAYABLE 1. The Loss Payee shown in the Schedule or in the Declarations is a creditor, including a mort- gageholder or trustee, whose interest in Cov- ered Property is established by such written in- struments as: a. Warehouse receipts; b. A contract for deed; c. Bills of lading; d. Financing statements; or e. Mortgages, deeds of trust, or security agreements. 2. For Covered Property in which both you and a Loss Payee have an insurable interest: a. We will pay for covered loss or damage to each Loss Payee in their order of prece- dence, as interests may appear. b. The Loss Payee has the right to receive loss payment even if the Loss Payee has started foreclosure or similar action on the Covered Property. c. If we deny your claim because of your acts or because you have failed to comply with the terms of the Coverage Part, the Loss Payee will still have the right to receive loss payment if the Loss Payee: (1) Pays any premium due under this Cov- erage Part at our request if you have failed to do so; (2) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of your failure to do so; and (3) Has notified us of any change in owner- ship, occupancy or substantial change in risk known to the Loss Payee. All of the terms of this Coverage Part will then apply directly to the Loss Payee. d. If we pay the Loss Payee for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this Coverage Part: (1) The Loss Payee's rights will be trans- ferred to us to the extent of the amount we pay; and (2) The Loss Payee's rights to recover the full amount of the Loss Payee's claim will not be impaired. At our option, we may pay to the Loss Payee the whole principal on the debt plus any accrued interest. In this event, you will pay your remaining debt to us. 3. If we cancel this policy, we will give written notice to the Loss Payee at least: a. 10 days before the effective date of cancel- lation if we cancel for your nonpayment of premium; or b. 30 days before the effective date of cancel- lation if we cancel for any other reason. 4. If we elect not to renew this policy, we will give written notice to the Loss Payee at least 10 days before the expiration date of this policy. D. CONTRACT OF SALE 1. The Loss Payee shown in the Schedule or in the Declarations is a person or organization you have entered a contract with for the sale of Covered Property. 2. For Covered Property in which both you and the Loss Payee have an insurable interest we will: a. Adjust losses with you; and b. Pay any claim for loss or damage jointly to you and the Loss Payee, as interests may appear. 3. The following is added to the OTHER INSUR- ANCE Condition: For Covered Property that is the subject of a contract of sale, the word "you" includes the Loss Payee. Page 2 of 2 Copyright, ISO Commercial Risk Services, Inc., 1994 CP 12 18 06 96 ? POLICY NUMBER: PHPK193247 COMMERCIAL PROPERTY CP 1218 06 95 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LOSS PAYABLE PROVISIONS This endorsement modifies insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM BUILDERS' RISK COVERAGE FORM CONDOMINIUM ASSOCIATION COVERAGE FORM CONDOMINIUM COMMERCIAL UNIT-OWNERS COVERAGE FORM STANDARD PROPERTY POLICY SCHEDULE Provisions Applicable Prem. Bldg. Loss Lender's Contract No. No. Payable Loss Payable Of Sale 002 001 X Description of Property 6454 Carlisle Pike Mechanicsburg, PA 17050-2384 A. When this endorsement is attached to the STAN- DARD PROPERTY POLICY CP 00 99 the term Coverage Part in this endorsement is replaced by the term Policy. Loss Payee (Name & Address) Deutsch Financial Services 2337 Waukegen Road Pannockburn, IL 60015 B. LOSS PAYABLE For Covered Property in which both you and a Loss Payee shown in the Schedule or in the Dec- larations have an insurable interest, we will: The following is added to the LOSS PAYMENT Loss 1. Adjust losses with you; and Condition, as indicated in the Declarations or by an X" in the Schedule: 2. Pay any claim for loss or damage jointly to you and the Loss Payee, as interests may appear. CP 12 18 06 95 Copyright, ISO Commercial Risk Services, Inc., 1994 Page 1 of 2 ? C. LENDER'S LOSS PAYABLE 1. The Loss Payee shown in the Schedule or in the Declarations is a creditor, including a mort- gageholder or trustee, whose interest in Cov- ered Property is established by such written in- struments as: a. Warehouse receipts; b. A contract for deed; c. Bills of lading; d. Financing statements; or e. Mortgages, deeds of trust, or security agreements. 2. For Covered Property in which both you and a Loss Payee have an insurable interest: a. We will pay for covered loss or damage to each Loss Payee in their order of prece- dence, as interests may appear. b. The Loss Payee has the right to receive loss payment even if the Loss Payee has started foreclosure or similar action on the Covered Property. c. If we deny your claim because of your acts or because you have failed to comply with the terms of the Coverage Part, the Loss Payee will still have the right to receive loss payment if the Loss Payee: (1) Pays any premium due under this Cov- erage Part at our request if you have failed to do so; (2) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of your failure to do so; and (3) Has notified us of any change in owner- ship, occupancy or substantial change in risk known to the Loss Payee. All of the terms of this Coverage Part will then apply directly to the Loss Payee. d. If we pay the Loss Payee for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this Coverage Part: (1) The Loss Payee's rights will be trans- ferred to us to the extent of the amount we pay; and (2) The Loss Payee's rights to recover the full amount of the Loss Payee's claim wiM not be impaired. At our option, we may pay to the Loss Payee the whole principal on the debt plus any accrued interest. In this event, you will pay your remaining debt to us. 3. If we cancel this policy, we will give written notice to the Loss Payee at least: a. 10 days before the effective date of cancel- lation if we cancel for your nonpayment of premium; or b. 30 days before the effective date of cancel- lation if we cancel for any other reason. 4. If we elect not to renew this policy, we will give written notice to the Loss Payee at least 10 days before the expiration date of this policy. D. CONTRACT OF SALE 1. The Loss Payee shown in the Schedule or in the Declarations is a person or organization you have entered a contract with for the sale of Covered Property. 2. For Covered Property in which both you and the Loss Payee have an insurable interest we will: a. Adjust losses with you; and b. Pay any claim for loss or damage jointly to you and the Loss Payee, as interests may appear. 3. The following is added to the OTHER INSUR- ANCE Condition: For Covered Property that is the subject of a contract of sale, the word "you" includes the Loss Payee. Page 2 of 2 Copyright, ISO Commercial Risk Services, Inc., 1994 CP 12 18 06 95 ? POLICY NUMBER: PHPK193247 COMMERCIAL PROPERTY CP12180696 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LOSS PAYABLE PROVISIONS This endorsement modifies insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM BUILDERS' RISK COVERAGE FORM CONDOMINIUM ASSOCIATION COVERAGE FORM CONDOMINIUM COMMERCIAL UNIT-OWNERS COVERAGE FORM STANDARD PROPERTY POLICY SCHEDULE Provisions Applicable Prem. Bldg. Loss Lender's Contract No. No. Payable Loss Payable Of Sale 001 001 Description of Property 1001 Eisenhower Boulevard Harrisburg, PA 17111-2314 A. When this endorsement is attached to the STAN- DARD PROPERTY POLICY CP 00 99 the term Coverage Part in this endorsement is replaced by the term Policy. X Loss Payee (Name & Address) Pennsylvania State Bank 2148 Market St Camp Hill, PA 17011-4706 B. LOSS PAYABLE For Covered Property in which both you and a Loss Payee shown in the Schedule or in the Dec- larations have an insurable interest, we will: The following is added to the LOSS PAYMENT Loss 1. Adjust losses with you; and Condition, as indicated in the Declarations or by an "X" in the Schedule: 2. Pay any claim for loss or damage jointly to you and the Loss Payee, as interests may appear. CP 12 18 06 95 Copyright, ISO Commercial Risk Services, Inc., 1994 Page 1 of 2 n 11 1 C. LENDER'S LOSS PAYABLE 1. The Loss Payee shown in the Schedule or in the Declarations is a creditor, including a mort- gageholder or trustee, whose interest in Cov- ered Property is established by such written in- struments as: a. Warehouse receipts; b. A contract for deed; c. Bills of lading; d. Financing statements; or e. Mortgages, deeds of trust, or security agreements. 2. For Covered Property in which both you and a Loss Payee have an insurable interest: a. We will pay for covered loss or damage to each Loss Payee in their order of prece- dence, as interests may appear. b. The Loss Payee has the right to receive loss payment even if the Loss Payee has started foreclosure or similar action on the Covered Property. c. If we deny your claim because of your acts or because you have failed to comply with the terms of the Coverage Part, the Loss Payee will still have the right to receive loss payment if the Loss Payee: (1) Pays any premium due under this Cov- erage Part at our request if you have failed to do so; (2) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of your failure to do so; and (3) Has notified us of any change in owner- ship, occupancy or substantial change in risk known to the Loss Payee. All of the terms of this Coverage Part will then apply directly to the Loss Payee. d. If we pay the Loss Payee for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this Coverage Part: (1) The Loss Payee's rights will be trans- ferred to us to the extent of the amount we pay; and (2) The Loss Payee's rights to recover the full amount of the Loss Payee's claim will not be impaired. At our option, we may pay to the Loss Payee the whole principal on the debt plus any accrued interest. In this event, you will pay your remaining debt to us. 3. If we cancel this policy, we will give written notice to the Loss Payee,at least: a. 10 days before the effective date of cancel- lation if we cancel for your nonpayment of premium; or b. 30 days before the effective date of cancel- lation if we cancel for any other reason. 4. If we elect not to renew this policy, we will give written notice to the Loss Payee at least 10 days before the expiration date of this policy. D. CONTRACT OF SALE 1. The Loss Payee shown in the Schedule or in the Declarations is a person or organization you have entered a contract with for the sale of Covered Property. 2. For Covered Property in which both you and the Loss Payee have an insurable interest we will: a. Adjust losses with you; and b. Pay any claim for loss or damage jointly to you and the Loss Payee, as interests may appear. 3. The following is added to the OTHER INSUR- ANCE Condition: For Covered Property that is the subject of a contract of sale, the word "you" includes the Loss Payee. Page 2 of 2 Copyright, ISO Commercial Risk Services, Inc., 1994 CP 12.18 06 96 ? POLICY NUMBER: PHPK193247 COMMERCIAL PROPERTY CP12180696 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LOSS PAYABLE PROVISIONS This endorsement modifies insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM BUILDERS' RISK COVERAGE FORM CONDOMINIUM ASSOCIATION COVERAGE FORM CONDOMINIUM COMMERCIAL UNIT-OWNERS COVERAGE FORM STANDARD PROPERTY POLICY SCHEDULE Provisions Applicable Prem. Bldg. Loss Lender's Contract No. No. Payable Loss Payable Of Sale 001 001 X Description of Property 1001 Eisenhower Boulevard Harrisburg, PA 17111-2314 A. When this endorsement is attached to the STAN- DARD PROPERTY POLICY CP 00 99 the term Coverage Part in this endorsement is replaced by the term Policy. Loss Payee (Name & Address) Deutsch Financial Services 2337 Waukegen Road Pannockburn, IL 60015 B. LOSS PAYABLE For Covered Property in which both you and a Loss Payee shown in the Schedule or in the Dec- larations have an insurable interest, we will: The following is added to the LOSS PAYMENT Loss 1. Adjust losses with you; and Condition, as indicated in the Declarations or by an "X" in the Schedule: 2. Pay any claim for loss or damage jointly to you and the Loss Payee, as interests may appear. CP 12 18 06 95 Copyright, ISO Commercial Risk Services, Inc., 1994 Page 1 of 2 ? C. LENDER'S LOSS PAYABLE 1. The Loss Payee shown in the Schedule or in the Declarations is a creditor, including a mort- gageholder or trustee, whose interest in Cov- ered Property is established by such written in- struments as: a. Warehouse receipts; b. A contract for deed; c. Bills of lading; d. Financing statements; or e. Mortgages, deeds of trust, or security agreements. 2. For Covered Property in which both you and a Loss Payee have an insurable interest: a. We will pay for covered loss or damage to each Loss Payee in their order of prece- dence, as interests may appear. b. The Loss Payee has the right to receive loss payment even if the Loss Payee has started foreclosure or similar action on the Covered Property. c. If we deny your claim because of your acts or because you have failed to comply with the terms of the Coverage Part, the Loss Payee will still have the right to receive loss payment if the Loss Payee: (1) Pays any premium due under this Cov- erage Part at our request if you have failed to do so; (2) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of your failure to do so; and (3) Has notified us of any change in owner- ship, occupancy or substantial change in risk known to the Loss Payee. All of the terms of this Coverage Part will then apply directly to the Loss Payee. d. If we pay the Loss Payee for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this Coverage Part: (1) The Loss Payee's rights will be trans- ferred to us to the extent of the amount we pay; and (2) The Loss Payee's rights to recover the full amount of the Loss Payee's claim will not be impaired. At our option, we may pay to the Loss Payee the whole principal on the debt plus any accrued interest. In this event, you will pay your remaining debt to us. 3. If we cancel this policy, we will give written notice to the Loss Payee at least: a. 10 days before the effective date of cancel- lation if we cancel for your nonpayment of premium; or b. 30 days before the effective date of cancel- lation if we cancel for any other reason. 4. If we elect not to renew this policy, we will give written notice to the Loss Payee at least 10 days before the expiration date of this policy. D. CONTRACT OF SALE 1. The Loss Payee shown in the Schedule or in the Declarations is a person or organization you have entered a contract with for the sale of Covered Property. 2. For Covered Property in which both you and the Loss Payee have an insurable interest we will: a. Adjust losses with you; and b. Pay any claim for loss or damage jointly to you and the Loss Payee, as interests may appear. 3. The following is added to the OTHER INSUR- ANCE Condition: For Covered Property that is the subject of a contract of sale, the word "you" includes the Loss Payee. Page 2 of 2 Copyright, ISO Commercial Risk Services, Inc., 1994 CP 12 18 06 95 ? POLICY NUMBER: PHPK193247 COMMERCIAL PROPERTY CP12180696 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LOSS PAYABLE PROVISIONS This endorsement modifies insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM BUILDERS' RISK COVERAGE FORM CONDOMINIUM ASSOCIATION COVERAGE FORM CONDOMINIUM COMMERCIAL UNIT-OWNERS COVERAGE FORM STANDARD PROPERTY POLICY SCHEDULE Provisions Applicable Prem. Bldg. Loss Lenders Contract No. No. Payable Loss Payable Of Sale 001 001 X Description of Property 1001 Eisenhower Boulevard Harrisburg, PA 17111-2314 A. When this endorsement is attached to the STAN- DARD PROPERTY POLICY CP 00 99 the term Coverage Part in this endorsement is replaced by the term Policy. Loss Payee (Name & Address) AT&T Capital Corp 500 Chastain Center Blvd NW Ste 555 Kennesaw, GA 30144-5599 B. LOSS PAYABLE For Covered Property in which both you and a Loss Payee shown in the Schedule or in the Dec- larations have an insurable interest, we will: The following is added to the LOSS PAYMENT Loss 1. Adjust losses with you; and Condition, as indicated in the Declarations or by an "X" in the Schedule: 2. Pay any claim for loss or damage jointly to you and the Loss Payee, as interests may appear. CP 12 18 06 96 Copyright, ISO Commercial Risk Services, Inc., 1994 Page 1 of 2 ? b. We will pay for expenses incurred to re- move or replace obstructions when repair- ing or replacing glass that is part of a build- ing. This does not include removing or re- placing window displays. This Coverage Extension, F.3., does not in- crease the Limit of Insurance. G. Definitions 1. "Fungus" means any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents or by-products produced or re- leased by fungi. 2. "Specified Causes of Loss" means the follow- ing: Fire; lightning; explosion; windstorm or hail; smoke; aircraft or vehicles; riot or civil commotion; 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 sink- ing or collapse of land into underground empty spaces created by the action of wa- ter on limestone or dolomite. This cause of loss does not include: (1) The cost of filling sinkholes; or (2) Sinking or collapse of land into man- made underground cavities. b. Falling objects does not include loss or damage to: (1) Personal property in the open; or (2) The interior of a building or structure, or property inside a building or structure, unless the roof or an outside wall of the building or structure is first damaged by a fatting object c. Water damage means accidental discharge or leakage of water or steam as the direct result of the breaking apart or cracking of a plumbing, heating, air conditioning or other system or appliance (other than a sump system including its related equipment and parts), that is located on the described premises and contains water or steam. CP 10 30 04 02 © ISO Properties, Inc., 2001 Page 9 of 9 ? 4. The coverage provided under this Limited Coverage does not increase the applicable Limit of Insurance on any Covered Property. If a particular occurrence results in loss or dam- age by "fungus", wet or dry rot or bacteria, and other loss or damage, we will not pay more, for the total of all loss or damage, than the appli- cable Limit of Insurance on the affected Cov- ered Property. If there is covered loss or damage to Covered Property, not caused by "fungus", wet or dry rot or bacteria, loss payment will not be limited by the terms of this Limited Coverage, except to the extent that "fungus", wet or dry rot or bacte- ria causes an increase in the loss. Any such increase in the loss will be subject to the terms of this Limited Coverage. 5. The terms of this Limited Coverage do not increase or reduce the coverage provided un- der Paragraph F.2. (Water Damage, Other Liq- uids, Powder Or Molten Material Damage) of this Causes Of Loss Form or under the Addi- tional Coverage - Collapse. 6. The following, 6.a. or 6.b., applies only if Busi- ness Income and/or Extra Expense coverage applies to the described premises and only if the "suspension" of "operations" satisfies all terms and conditions of the applicable Busi- ness Income and/or Extra Expense coverage form. a. If the loss which resulted in "fungus", wet or dry rot or bacteria does not in itself necessi- tate a "suspension" of "operations", but such "suspension" is necessary due to loss or damage to property caused by "fungus", wet or dry rot or bacteria, then our payment under Business Income and/or Extra Ex- pense is limited to the amount of loss and/or expense sustained in a period of not more than 30 days. The days need not be consecutive. b. If a covered "suspension" of "operations" was caused by loss or damage other than "fungus", wet or dry rot or bacteria but remediation of "fungus", wet or dry rot or bacteria prolongs the "period of restora- tion", we will pay for loss and/or expense sustained during the delay (regardless of when such a delay occurs during the "pe- riod of restoration"), but such coverage is limited to 30 days. The days need not be consecutive. F. Additional Coverage Extensions 1. Property In Transit This Extension applies only to your personal property to which this form applies. a. You may extend the insurance provided by this Coverage Part to apply to your per- sonal property (other than property in the care, custody or control of your salesper- sons) in transit more than 100 feet from the described premises. Property must be in or on a motor vehicle you own, lease or oper- ate while between points in the coverage territory. b. Loss or damage must be caused by or result from one of the following causes of loss: (1) Fire, lightning, explosion, windstorm or hail, riot or civil commotion, or vandal- ism. (2) Vehicle collision, upset or overturn. Collision means accidental contact of your vehicle with another vehicle or ob- ject. It does not mean your vehicle's contact with the road bed. (3) Theft of an entire bale, case or package by forced entry into a securely locked body or compartment of the vehicle. There must be visible marks of the forced entry. c. The most we will pay for loss or damage under this Extension is $5,000. This Coverage Extension is additional insur- ance. The Additional Condition, Coinsurance, does not apply to this Extension. 2. Water Damage, Other Liquids, Powder Or Molten Material Damage If loss or damage caused by or resulting from covered water or other liquid, powder or molten material damage loss 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 escapes. This Coverage Ex- tension does not increase the Limit of Insur- ance. 3. Glass a. We will pay for expenses incurred to put up temporary plates or board up openings if repair or replacement of damaged glass is delayed. Page 8 of 9 © ISO Properties, Inc., 2001 CP 10 30 04 02 ri f. Use of defective material or methods in construction, remodeling or renovation if the collapse occurs during the course.of the construction, remodeling or renovation. However, if the collapse occurs after con- struction, remodeling or renovation is com- plete and is caused in part by a cause of loss listed in 2.a. through 2.e., we will pay for the lose or damage even if use of defec- tive material or methods, in construction, remodeling or renovation, contributes to the collapse. The criteria set forth in 1.a. through 1.d. do not limit the coverage otherwise provided under this Causes of Loss Form for the causes of loss listed in 2.a., 2.d. and 2.e. 3. With respect to the following property: a. Outdoor radio or television antennas (in- cluding satellite dishes) and their lead-in wiring, masts or towers; b. Awnings, gutters and downspouts; c. Yard fixtures; d. Outdoor swimming pools; e. Fences; f. Piers, wharves and docks; g. Beach or diving platforms or appurte- nances; h. Retaining walls; and i. Walks, roadways and other paved surfaces; if the collapse is caused by a cause of loss listed in 2.b. through 2.f., we will pay for loss or damage to that property only if: a. Such loss or damage is a direct result of the collapse of a building insured under this Coverage Form; and b,. The property is Covered Property under this Coverage Form. 4. If personal property abruptly falls down or caves in and such collapse is not the result of collapse of a building, we will pay for loss or damage to Covered Property caused by such collapse of personal property only if: a. The collapse was caused by a Cause of Loss listed in 2.a. through 2.f. above; b. The personal property which collapses is inside a building; and c. The property which collapses is not of a kind listed in 3. above, regardless of whether that kind of property is considered to be personal property or real property. The coverage stated in this Paragraph 4. does not apply to personal property if marring and/or scratching is the only damage to that personal property caused by the collapse. Collapse of personal property does not mean cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion. 5. This Additional Coverage, Collapse, will not increase the Limits of Insurance provided in this Coverage Part. E. Additional Coverage - Limited Coverage For "Fungus", Wet Rot, Dry Rot And Bacteria 1. The coverage described in E.2. and E.S. only applies when the "fungus", wet or dry rot or bacteria is the result of one or more of the fol- lowing causes that occurs during the policy pe- riod and only if all reasonable means were used to save and preserve the property from further damage at the time of and after that oc- currence. a. A "specified cause of loss" other than fire or lightning; or b. Flood, if the Flood Coverage Endorsement applies to the affected premises. 2. We will pay for loss or damage by "fungus", wet or dry rot or bacteria. As used in this Lim- ited Coverage, the term loss or damage means: a. Direct physical loss or damage to Covered Property caused by "fungus", wet or dry rot or bacteria, including the cost of removal of the "fungus", wet or dry rot or bacteria; b. The cost to tear out and replace any part of the building or other property as needed to gain access to the "fungus", wet or dry rot or bacteria; and c. The cost of testing performed after removal, repair, replacement or restoration of the damaged property is completed, provided there is a reason to believe that "fungus", wet or dry rot or bacteria are present. 3. The coverage described under E.2. of this Limited Coverage is limited to $15,000. Re- gardless of the number of claims, this limit is the most we will pay for the total of all loss or damage arising out of all occurrences of "specified causes of loss" (other than fire or lightning) and Flood which take place in a 12- month period (starting with the beginning of the present annual policy period). With respect to a particular occurrence of loss which results in "fungus", wet or dry rot or bacteria, we will not pay more than a total of $15,000 even if the "fungus", wet or dry rot or bacteria continues to be present or active, or recurs, in a later policy period. CP 10 30 04 02 0 ISO Properties, Inc., 2001 Page 7 of 9 ? However, this limitation does not apply: (1) If the property is located on or within 100 feet of the described premises, unless the premises is insured under the Builders Risk Coverage Form; or (2) To Business Income coverage or to Extra Expense coverage. 3. The special limit shown for each category, a. through d., is the total limit for loss of or dam- age to all property in that category. The special limit applies to any one occurrence of theft, re- gardless of the types or number of articles that are lost or damaged in that occurrence. The special limits are: a. $2,500 for furs, fur garments and garments trimmed with fur. b. $2,500 for jewelry, watches, watch move- ments, jewels, pearls, precious and semi- precious stones, bullion, gold, silver, plati- num and other precious alloys or metals. This limit does not apply to jewelry and watches worth $100 or less per item. c. $2,500 for patterns, dies, molds and forms. d. $250 for stamps, tickets, including lottery tickets held for sale, and letters of credit. These special limits are part of, not in addition to, the Limit of Insurance applicable to the Cov- ered Property. This limitation, C.3., does not apply to Busi- ness Income coverage or to Extra Expense coverage. 4. We will not pay the cost to repair any defect to a system or appliance from which water, other liquid, powder or molten material escapes. But we will pay the cost to repair or replace dam- aged parts of fire extinguishing equipment if the damage: a. Results in discharge of any substance from an automatic fire protection system; or b. Is directly caused by freezing. However, this limitation does not apply to Busi- ness Income coverage or to Extra Expense coverage. D. Additional Coverage -Collapse The term Covered Cause of Loss includes the Ad- ditional Coverage - Collapse as described and limited in D.I. through D.5. below. 1. With respect to buildings: a. Collapse means an abrupt falling down or caving in of a building or any part of a build- ing with the result that the building or part of the building cannot be occupied for its in- tended purpose; b. A building or any part of a building that is in danger of falling down or caving in is not considered to be in a state of collapse; c. A part of a building that is standing is not considered to be in a state of collapse even if it has separated from another part of the building; d. A building that is standing or any part of a building that is standing is not considered to be in a state of collapse even if it shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or ex- pansion. 2. We will pay for direct physical loss or damage to Covered Property, caused by collapse of a building or any part of a building that is insured under this Coverage Form or that contains Covered Property insured under this Coverage Form, if the collapse is caused by one or more of the following: a. The "specified causes of loss" or breakage of building glass, all only as insured against in this Coverage Part; b. Decay that is hidden from view, unless the presence of such decay is known to an in- sured prior to collapse; c. Insect or vermin damage that is hidden from view, unless the presence of such damage is known to an insured prior to col- lapse; d. Weight of people or personal property; e. Weight of rain that collects on a roof; Page 6 of 9 © ISO Properties, Inc., 2001 CP 10 30 04 02 ? (2) The following additional exclusions apply to insurance under this Coverage Form: (a) Contractual Liability We will not defend any claim or "suit", or pay damages that you are legally liable to pay, solely by reason of your assumption of liability in a contract or agreement. But this ex- clusion does not apply to a written lease agreement in which you have assumed liability for building damage resulting from an actual or attempted burglary or robbery, provided that: (1) Your assumption of liability was executed prior to the accident; and (ii) The building is Covered Property under this Coverage Form. (b) Nuclear Hazard We will not defend any claim or "suit", or pay any damages, loss, expense or obligation, resulting from nuclear reaction or radiation, or radioactive contamination, however caused. C. Limitations The following limitations apply to all policy forms and endorsements, unless otherwise stated. 1. We will not pay for loss of or damage to prop- erty, as described and limited in this section. In addition, we will not pay for any loss that is a consequence of loss or damage as described and limited in this section. a. 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 combustion pass. b. Hot water boilers or other water heating equipment caused by or resulting from any condition or event inside such boilers or equipment, other than an explosion. c. The interior of any building or structure, or to personal property in the building or struc- ture, caused by or resulting from rain, snow, sleet, ice, sand or dust, whether driven by wind or not, unless: (1) The building or structure first sustains damage by a Covered Cause of Loss to its roof or walls through which the rain, snow, sleet, ice, sand or dust enters; or (2) The loss or damage is caused by or results from thawing of snow, sleet or ice on the building or structure. d. Building materials and supplies not at- tached as part of the building or structure, caused by or resulting from theft. However, this limitation does not apply to: (1) Building materials and supplies held for sale by you, unless they are insured un- der the Builders Risk Coverage Form; or (2) Business income coverage or Extra Expense coverage. e. Property that is missing, where the only evidence of the loss or damage is a short- age disclosed on taking inventory, or other instances where there is no physical evi- dence to show what happened to the prop- erty. f. Property that has been transferred to a person or to a place outside the described premises on the basis of unauthorized in- structions. 2. 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: a. Animals, and then only if they are killed or their destruction is made necessary. b. Fragile articles such as statuary, marbles, chinaware and porcelains, if broken. This restriction does not apply to: (1) Glass; or (2) Containers of property held for sale. c. Builders' machinery, tools and equipment owned by you or entrusted to you, provided such property is Covered Property. CP 10 30 04 02 0 ISO Properties, Inc., 2001 Page 5 of 9 ? c. Faulty, inadequate or defective: (1) Planning, zoning, development, survey- ing, siting; (2) Design, specifications, workmanship, repair, construction, renovation, remod- eling, grading, compaction; (3) Materials used in repair, construction, renovation or remodeling; or (4) Maintenance; of part or all of any property on or off the described premises. 4. Special Exclusions The following provisions apply only to the specified Coverage Forms. a. Business Income (And Extra Expense) Coverage Form, Business Income (Without Extra Expense) Coverage Form, Or Extra Expense Coverage Form We will not pay for: (1) Any loss caused directly or indirectly by the failure of power or other utility ser- vice supplied to the described premises, however caused, if the failure occurs outside of a covered building. Failure in- cludes lack of sufficient capacity and re- duction in supply. But if the failure of power or other utility service results in a Covered Cause of Loss, we will pay for the loss resulting from that Covered Cause of Loss. (2) Any loss caused by or resulting from: (a) Damage or destruction of "finished stock"; or (b) The time required to reproduce "fin- ished stock". This exclusion does not. apply to Extra Expense. (3) Any loss caused by or resulting from direct physical loss or damage to radio or television antennas (including satellite dishes) and their lead-in wiring, masts or towers. (4) Any increase of loss caused by or re- sulting from: (a) Delay in rebuilding, repairing or replacing the property or resuming "operations", due to interference at the location of the rebuilding, repair or replacement by strikers or other persons; or (b) Suspension, lapse or cancellation of any license, lease or contract. But if the suspension, lapse or cancellation is directly caused by the "suspen- sion" of "operations", we will cover such loss that affects your Business Income during the "period of restora- tion" and any extension of the "pe- riod of restoration" in accordance with the terms of the Extended Busi- ness Income Additional Coverage and the Extended Period Of Indem- nity Optional Coverage or any varia- tion of these. (6) Any Extra Expense caused by or result- ing from suspension, lapse or cancella- tion of any license, lease or contract be- yond the "period of restoration". (6) Any other consequential loss. b. Leasehold Interest Coverage Form (1) Paragraph B.1.a. Ordinance Or Law, does not apply to insurance under this Coverage Form. (2) We will not pay for any loss caused by: (a) Your cancelling the lease; (b) The suspension, lapse or cancella- tion of any license; or (c) Any other consequential loss. c. Legal Liability Coverage Form (1) The following exclusions do not apply to insurance under this Coverage Form: (a) Paragraph B.1.a., Ordinance Or Law; (b) Paragraph B.1.c., Governmental Action; (c) Paragraph B.1.d., Nuclear Hazard; (d) Paragraph B.1.e., Utility Services; and (e) Paragraph B.1.f., War And Military Action. Page 4 of 9 © ISO Properties, Inc., 2001 CP 10 30 04 02 Cl (6) Mechanical breakdown, including rup- ture or bursting caused by centrifugal force. But if mechanical breakdown re- sults in elevator collision, we will pay for the loss or damage caused by that ele- vator collision. (7) The following causes of loss to personal property: (a) Dampness or dryness of atmos- phere; (b) Changes in or extremes of tempera- ture; or (c) Marring or scratching. But if an excluded cause of loss that is listed in 2.d.(1) through (7) results in a "specified cause of loss" or building glass breakage, we will pay for the loss or dam- age 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 con- trol. But if explosion of steam boilers, steam pipes, steam engines or steam turbines re- sults in fire or combustion explosion, we will pay for the loss or damage caused by that fire or combustion explosion. We will also pay for loss or damage caused by or result- ing from the explosion of gases or fuel within the furnace of any fired vessel or within the flues or passages through which the gases of combustion pass. f. Continuous or repeated seepage or leak- age of water, or the presence or condensa- tion of humidity, moisture or vapor, that oc- curs over a period of 14 days or more. g. Water, other liquids, powder or molten material that leaks or flows from plumbing, heating, air conditioning or other equipment (except fire protective systems) caused by or resulting from freezing, unless: (1) You do your best to maintain heat in the building or structure; or (2) You drain the equipment and shut off the supply if the heat is not maintained. h. Dishonest or criminal act by you, any of your partners, members, officers, manag- ers, employees (including leased employ- ees), directors, trustees, authorized repre- sentatives or anyone to whom you entrust the property for any purpose: (1) Acting alone or in collusion with others; or (2) Whether or not occurring during the hours of employment. This exclusion does not apply to acts of de- struction by your employees (including leased employees); but theft by employees (including leased employees) is not cov- ered. 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. j. Rain, snow, ice or sleet to personal prop- erty in the open. k. Collapse, except as provided below in the Additional Coverage for Collapse. But if col- lapse 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. 1. Discharge, dispersal, seepage, migration, release or escape of "pollutants" unless the discharge, dispersal, seepage, migration, release or escape is itself caused by any of the "specified causes of loss". But if the discharge, dispersal, seepage, migration, release or escape of "pollutants" results in a "specified cause of loss", we will pay for the loss or damage caused by that "specified cause of loss". This exclusion, I., does not apply to dam- age to glass caused by chemicals applied to the glass. m. Neglect of an insured to use all reasonable means to save and preserve property from further damage at and after the time of loss. 3. We will not pay for loss or damage caused by or resulting from any of the following, 3.a. through 3.c. But if an excluded cause of loss that is listed in 3.a. through 3.c. results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. a. Weather conditions. But this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in Paragraph 1. above to produce the loss or damage. b. Acts or decisions, including the failure to act or decide, of any person, group, organiza- tion or governmental body. CP 10 30 04 02 © ISO Properties, Inc., 2001 Page 3 of 9 ? d. Nuclear Hazard Nuclear reaction or radiation, or radioactive contamination, however caused. But if nuclear reaction or radiation, or ra- dioactive contamination, results in fire, we will pay for the loss or damage caused by that fire. But if Water, as described in g.(1) through g.(4) above, results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. h. "Fungus", Wet Rot, Dry Rot And Bacteria e. Utility Services Presence, growth, proliferation, spread or any activity of "fungus", wet or dry rot or The failure of power or other utility service bacteria. supplied to the described premises, how- ever caused, if the failure occurs away from But if "fungus", wet or dry rot or bacteria re- the described premises. Failure includes sults in a "specified cause of loss", we will lack of sufficient capacity and reduction in pay for the loss or damage caused by that supply. "specified cause of loss". But if the failure of power or other utility ser- This exclusion does not apply: vice results in a Covered Cause of Loss, 1. When "fungus", wet or dry rot or bacte- we will pay for the loss or damage caused ria results from fire or lightning; or by that Covered Cause of Loss. 2. To the extent that coverage is provided This exclusion does not apply to the Busi- in the Additional Coverage - Limited ness Income coverage or to Extra Expense Coverage For "Fungus", Wet Rot, Dry coverage. Instead, the Special Exclusion in Rot And Bacteria with respect to loss or Paragraph B.4.a.(1) applies to these cover- damage by a cause of loss other than ages. fire or lightning. f. War And Military Action Exclusions 13.1.a. through B.1.h. apply whether (1) War, including undeclared or civil war; or not the loss event results in widespread damage or affects a substantial area. (2) Warlike action by a military force, includ- ing action in hindering or defending 2. We will not pay for loss or damage caused by against an actual or expected attack, by or resulting from any of the following: any government, sovereign or other au- a. Artificially generated electrical current, thority using military personnel or other including electric arcing, that disturbs elec- agents; or trical devices, appliances or wires. (3) Insurrection, rebellion, revolution, But if artificially generated electrical current usurped power, or action taken by gov- results in fire, we will pay for the loss or ernmental authority in hindering or de- damage caused by that fire. fending against any of these. b. Delay, loss of use or loss of market. g. Water c. Smoke, vapor or gas from agricultural (1) Flood, surface water, waves, tides, tidal smudging or industrial operations. waves, overflow of any body of water, or d.(1) Wear and tear; their spray, all whether driven by wind or not; (2) Rust or other corrosion, decay, deterio- ration, hidden or latent defect or any quality in property that causes it to dam- (3) Water that backs up or overflows from a age or destroy itself; sewer, drain or sump; or (3) Smog; (4) Water under the ground surface press- (4) Settling, cracking, shrinking or expan- ing on, or flowing or seeping through: sion; (a) Foundations, walls, floors or paved (5) Nesting or infestation, or discharge or surfaces; release of waste products or secretions, (b) Basements, whether paved or not; or by insects, birds, rodents or other ani- (c) Doors, windows or other openings. mals. Page 2 of 9 © ISO Properties, Inc., 2001 CP 10 30 04 02 ? COMMERCIAL PROPERTY CP10300402 CAUSES OF LOSS -- SPECIAL FORM Words and phrases that appear in quotation marks have special meaning. Refer to Section F. - Definitions. A. Covered Causes Of Loss When Special is shown in the Declarations, Cov- ered Causes of Loss means Risks Of Direct Physical Loss unless the loss is: 1. Excluded in Section B., Exclusions; or 2. Limited in Section C., Limitations; that follow. B. Exclusions 1. We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes con- currently or in any sequence to the loss. 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 prop- erty, including the cost of removing its debris. This exclusion, Ordinance Or Law, applies whether the loss results from: (1) An ordinance or law that is enforced even if the property has not been dam- aged; or (2) The increased costs incurred to comply with an ordinance or law in the course of construction, repair, renovation, remod- eling or demolition of property, or re- moval 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 sinking, rising or shifting related to such event; (3) Mine subsidence, meaning subsidence of a man-made mine, whether or not mining activity has ceased; (4) Earth sinking (other than sinkhole col- lapse), rising or shifting including soil conditions which cause settling, crack- ing or other disarrangement of founda- tions or other parts of reatty. Soil condi- tions include contraction, expansion, freezing, thawing, erosion, improperly compacted soil and the action of water under the ground surface. But if Earth Movement, as described in b.(1) through (4) above, results in fire or explosion, we will pay for the loss or dam- age caused by that fire or explosion. (5) Volcanic eruption, explosion or effusion. But if volcanic eruption, explosion or ef- fusion results in fire, building glass breakage or Volcanic Action, we will pay for the loss or damage caused by that fire, building glass breakage or Volcanic Action. Volcanic action means direct loss or damage resulting from the eruption of a volcano when the loss or damage is caused by: (a) Airborne volcanic blast or airborne shock waves; (b) Ash, dust or particulate matter; or (c) Lava flow. All volcanic eruptions that occur within any 168 hour period will constitute a sin- gle occurrence. Volcanic action does not include the cost to remove ash, dust or particulate matter that does not cause direct physi- cal loss or damage to the described property. c. Governmental Action Seizure or destruction of property by order of governmental authority. But we will pay for loss or damage caused by or resulting from acts of destruction or- dered by governmental authority and taken at the time of a fire to prevent its spread, if the fire would be covered under this Cover- age Part. CP 10 30 04 02 © ISO Properties, Inc., 2001 Page 1 of 9 ? 1. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US If any person or organization to or for whom we make payment under this Coverage Part has rights to recover damages from another, those rights are transferred to us to the extent of our payment. That person or organization must do everything necessary to secure our rights and must do nothing after loss to impair them. But you may waive your rights against another party in writing: 1. Prior to a loss to your Covered Property or Covered Income. 2. After a loss to your Covered Property or Cov- ered Income only if, at time of loss, that party is one of the following: a. Someone insured by this insurance; b. A business firm: (1) Owned or controlled by you; or (2) That owns or controls you; or c. Your tenant. This will not restrict your insurance. Page 2 of 2 Copyright, ISO Commercial Risk Services, Inc., 1983, 1987 CP 00 90 07 88 COMMERCIAL PROPERTY COMMERCIAL PROPERTY CONDITIONS This Coverage Part is subject to the following conditions, the Common Policy Conditions and applicable Loss Conditions and Additional Conditions in Commercial Property Coverage Forms. A. CONCEALMENT, MISREPRESENTATION OR FRAUD This Coverage Part is void in any case of fraud by you as it relates to this Coverage Part at any time. It is also void if you or any other insured, at any time, intentionally conceal or misrepresent a mate- rial fact concerning: 1. This Coverage Part; 2. The Covered Property; 3. Your interest in the Covered Property; or 4. A claim under this Coverage Part. B. 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 Part at any one or more locations will not affect cover- age at any location where, at the time of loss or damage, the breach of condition does not exist. C. INSURANCE UNDER TWO OR MORE COVER- AGES If two or more of this policy's coverages apply to the same loss or damage, we will not pay more than the actual amount of the loss or damage. D. LEGAL ACTION AGAINST US No one may bring a legal action against us under this Coverage Part unless: 1. There has been full compliance with all of the terms of this Coverage Part; and 2. The action is brought within 2 years after the date on which the direct physical loss or dam- age occurred. F. NO BENEFIT TO BAILEE No person or organization, other than you, having custody of Covered Property will benefit from this insurance. G. OTHER INSURANCE 1. You may have other insurance subject to the same plan, terms, conditions and provisions as the insurance under this Coverage Part. 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 Cover- age Part bears to the Limits of Insurance of all insurance covering on the same basis. 2. If there is other insurance covering the same loss or damage, other than that described in 1. above, we will pay only for the amount of cov- ered 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. H. POLICY PERIOD, COVERAGE TERRITORY Under this Coverage Part: 1. We cover loss or damage commencing: a. During the policy period shown in the Dec- larations; and b. Within the coverage territory. 2. The coverage territory is: a. The United States of America (including its territories and possessions); b. Puerto Rico; and c. Canada. E. LIBERALIZATION If we adopt any revision that would broaden the coverage under this Coverage Part without addi- tional premium within 45 days prior to or during the policy period, the broadened coverage will immediately apply to this Coverage Part. CP 00 90 07 88 Copyright, ISO Commercial Risk Services, Inc., 1983, 1987 Pagel of 2 ? "Suspension" means: a. The slowdown or cessation of your busi- ness activities; or b. That a part or all of the described premises is rendered untenantable, if coverage for Business Income including "Rental Value" or "Rental Value" applies. CP 00 30 04 02 © ISO Properties, Inc., 2001 Page 9 of 9 0 1, a (2) The expiration date of this policy; whichever occurs first. c. We will reinstate the Additional Condition, Coinsurance, automatically if you do not submit a new Work Sheet and Agreed Value: (1) Within 12 months of the effective date of this Optional Coverage; or (2) When you request a change in your Business Income Limit of Insurance. d. If the Business Income Limit of Insurance is less than the Agreed Value, we will not pay more of any loss than the amount of loss multiplied by: (1) The Business Income Limit of Insur- ance; divided by (2) The Agreed Value. Example: When: The Limit of Insurance is $ 100,000 The Agreed Value is $ 200,000 The amount of loss is $ 80,000 Step (a): $100,000 = $200,000 = .50 Step (b): .50 x $80,000 = $40,000 We will pay $40,000. The remaining $40,000 is not covered. 4. Extended Period Of Indemnity Under Paragraph A.S.c., Extended Business Income, the number "30" in Subparagraphs (1)(b) and (2)(b) is replaced by the number shown in the Declarations for this Optional Coverage. F. Definitions 1. "Finished Stock" means stock you have manu- factured. "Finished stock" also includes whiskey and al- coholic products being aged, unless there is a Coinsurance percentage shown for Business Income in the Declarations. "Finished stock" does not include stock you have manufactured that is held for sale on the premises of any retail outlet insured under this Coverage Part. 2. "Operations" means: a. Your business activities occurring at the described premises; and b. The tenantability of the described premises, if coverage for Business Income including "Rental Value" or "Rental Value" applies. 3. "Period of Restoration" means the period of time that: a. Begins: (1) 72 hours after the time of direct physical loss or damage for Business Income coverage; or (2) Immediately after the time of direct physical loss or damage for Extra Ex- pense coverage; 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 de- scribed premises should be repaired, rebuilt or replaced with reasonable speed and similar quality; or (2) The date when business is resumed at a new permanent location. "Period of restoration" does not include any in- creased period required due to the enforce- ment of any ordinance or law that: (1) Regulates the construction, use or re- pair, or requires the tearing down of any property; or (2) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants". The expiration date of this policy will not cut short the "period of restoration". 4. "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 reclaimed. 5. "Rental Value" means Business Income that consists of: a. Net Income (Net Profit or Loss before in- come taxes) that would have been earned or incurred as rental income from tenant occupancy of the premises described in the Declarations as furnished and equipped by you, including fair rental value of any por- tion of the described premises which is oc- cupied by you; and b. Continuing normal operating expenses incurred in connection with that premises, including: (1) Payroll; and (2) The amount of charges which are the legal obligation of the tenant(s) but would otherwise be your obligations. Page 8 of 9 © ISO Properties, Inc., 2001 CP 00 30 04 02 ? Example No. 2 (Adequate Insurance): When: The Net Income and operating expenses for the 12 months following the inception, or last previous anniversary date, of this policy at the described premises would have been $ 400,000 The Coinsurance per- centage is 50% The Limit of Insurance is $ 200,000 The amount of loss is $ 80,000 The minimum amount of insurance to meet your Coinsurance requirement is $200,000 ($400,000 x 50%). Therefore, the Limit of Insurance in this Ex- ample is adequate and no penalty applies. We will pay no more than $80,000 (amount of loss). This condition does not apply to Extra Expense coverage. E. Optional Coverages If shown as applicable in the Declarations, the fol- lowing Optional Coverages apply separately to each item. ' 1. Maximum Period Of Indemnity a. The Additional Condition, Coinsurance, does not apply to this Coverage Form at the described premises to which this Optional Coverage applies. b. The most we will pay for the total of Busi- ness Income loss and Extra Expense is the lesser of. (1) The amount of loss sustained and ex- penses incurred during the 120 days immediately following the beginning of the "period of restoration"; or (2) The Limit of Insurance shown in the Declarations. 2. Monthly Limit Of Indemnity a. The Additional Condition, Coinsurance, does not apply to this Coverage Form at the described premises to which this Optional Coverage applies. b. The most we will pay for loss of Business Income in each period of 30 consecutive days after the beginning of the "period of restoration" is: (1) The Limit of Insurance, multiplied by (2) The fraction shown in the Declarations for this Optional Coverage. Example: When: The Limit of Insurance is $ 120,000 The fraction shown in the Declarations for this Optional Coverage is 1 /4 The most we will pay for loss in each period of 30 consecutive days is: $120,000 x 1/4 = $30,000 If, in this example, the actual amount of loss is: Days 1-30 $ 40,000 Days 31-60 20,000 Days 61-90 30,000 $ 90,000 We will pay: Days 1-30 $ 30,000 Days 31-60 20,000 Days 61-90 30,000 $ 80,000 The remaining $10,000 is not covered. 3. Business Income Agreed Value a. To activate this Optional Coverage: (1) A Business Income Report/Work Sheet must be submitted to us and must show financial data for your "operations": (a) During the 12 months prior to the date of the Work Sheet; and (b) Estimated for the 12 months imme- diately following the inception of this Optional Coverage. (2) The Declarations must indicate that the Business Income Agreed Value Optional Coverage applies, and an Agreed Value must be shown in the Declarations. The Agreed Value should be at least equal to: (a) The Coinsurance percentage shown in the Declarations; multiplied by (b) The amount of Net Income and op- erating expenses for the following 12 months you report on the Work Sheet. b. The Additional Condition, Coinsurance, is suspended until: (1) 12 months after the effective date of this Optional Coverage; or CP 00 30 04 02 © ISO Properties, Inc., 2001 Page 7 of 9 ? 4. Loss Payment We will pay for covered loss within 30 days af- ter we receive the sworn proof of loss, if you have complied with all of the terms of this Cov- erage Part and: a. We have reached agreement with you on the amount of loss; or b. An appraisal award has been made. D. Additional Condition Coinsurance If a Coinsurance percentage is shown in the Dec- larations, the following condition applies in addi- tion to the Common Policy Conditions and the Commercial Property Conditions. We will not pay the full amount of any Business Income loss if the Limit of Insurance for Business Income is less than: a. The Coinsurance percentage shown for Business Income in the Declarations; times b. The sum of: (1) The Net Income (Net Profit or Loss before income taxes), and (2) Operating expenses, including payroll expenses, that would have been earned or incurred (had no loss occurred) by your "operations" at the described premises for the 12 months following the inception, or last pre- vious anniversary date, of this policy (whichever is later). Instead, we will determine the most we will pay us- ing the following steps: 1. Multiply the Net Income and operating expense for the 12 months following the inception, or last previous anniversary date, of this policy by the Coinsurance percentage; 2. Divide the Limit of Insurance for the described premises by the figure determined in Step 1.; and 3. Multiply the total amount of loss by the figure determined in Step 2. We will pay the amount determined in Step 3. or the limit of insurance, whichever is less. For the remainder, you will either have to rely on other in- surance or absorb the loss yourself. In determining operating expenses for the purpose of applying the Coinsurance condition, the follow- ing expenses, if applicable, shall be deducted from the total of all operating expenses: 1. Prepaid freight - outgoing; 2. Returns and allowances; 3. Discounts; 4. Bad debts; 5. Collection expenses; 6. Cost of raw stock and factory supplies con- sumed (including transportation charges); 7. Cost of merchandise sold (including transpor- tation charges); 8. Cost of other supplies consumed (including transportation charges); 9. Cost of services purchased from outsiders (not employees) to resell, that do not continue un- der contract; 10. Power, heat and refrigeration expenses that do not continue under contract (if Form CP 15 11 is attached); 11. All ordinary payroll expenses or the amount of payroll expense excluded (if Form CP 15 10 is attached); and 12. Special deductions for mining properties (royal- ties unless specifically included in coverage; actual depletion commonly known as unit or cost depletion - not percentage depletion; wel- fare and retirement fund charges based on tonnage; hired trucks). Example No. 1 (Underinsurance): When: The Net Income and operating expenses for the 12 months following the inception, or last previous anniversary date, of this policy at the described premises would have been $ 400,000 The Coinsurance per- centage is 50% The Limit of Insurance is $ 150,000 The amount of loss is $ 80,000 Step 1: $400,000 x 50% = $200,000 (the minimum amount of insurance to meet your Coinsurance requirements) Step 2: $150,000 _ $200,000 = .75 Step 3: $80,000 x.75 = $60,000 We will pay no more than $60,000. The remaining $20,000 is not covered. Page 6 of 9 0 ISO Properties, Inc., 2001 CP 00 30 04 02 ? (4) Take all reasonable steps to protect the Covered Property from further damage, and keep a record of your expenses necessary to protect the Covered Prop- erty, for consideration in the settlement of the claim. This will not increase the Limit of Insurance. However, we will not pay for any subsequent loss or damage resulting from a cause of loss that is not a Covered Cause of Loss. Also, if feasi- ble, set the damaged property aside and in the best possible order for examina- tion. (5) As often as may be reasonably required, permit us to inspect the property proving the loss or damage and examine your books and records. Also permit us to take samples of dam- aged and undamaged property for in- spection, testing and analysis, and per- mit us to make copies from your books and records. (6) Send us a signed, sworn proof of loss containing the information we request to investigate the claim. You must do this within 60 days after our request. We will supply you with the necessary forms. (7) Cooperate with us in the investigation or settlement of the claim. (8) If you intend to continue your business, you must resume all or part of your "op- erations" as quickly as possible. b. We may examine any insured under oath, while not in the presence of any other in- sured and at such times as may be rea- sonably required, about any matter relating to this insurance or the claim, including an insured's books and records. In the event of an examination, an insured's answers must be signed. 3. Loss Determination a. The amount of Business Income loss will be determined based on: (1) The Net Income of the business before the direct physical loss or damage oc- curred; (2) The likely Net Income of the business if no physical loss or damage had oc- curred, but not including any Net Income that would likely have been earned as a result of an increase in the volume of business due to favorable business con- ditions caused by the impact of the Cov- ered Cause of Loss on customers or on other businesses; (3) The operating expenses, including pay- roll expenses, necessary to resume "op- erations" with the same quality of service that existed just before the direct physical loss or damage; and (4) Other relevant sources of information, including: (a) Your financial records and account- ing procedures; (b) Bills, invoices and other vouchers; and (c) Deeds, liens or contracts. b. The amount of Extra Expense will be de- termined based on: (1) All expenses that exceed the normal operating expenses that would have been incurred by "operations" during the "period of restoration" if no direct physi- cal loss or damage had occurred. We will deduct from the total of such ex- penses: (a) The salvage value that remains of any property bought for temporary use during the "period of restora- tion", once "operations" are re- sumed; and (b) Any Extra Expense that is paid for by other insurance, except for insurance that is written subject to the same plan, terms, conditions and provi- sions as this insurance; and (2) Necessary expenses that reduce the Business Income loss that otherwise would have been incurred. c. Resumption Of 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 undamaged 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. CP 00 30 04 02 © ISO Properties, Inc., 2001 Page 6 of 9 El (4) The most we will pay under this Addi- tional Coverage - Interruption of Com- puter Operations is $2,500 for all loss sustained and expense incurred in any one policy year, regardless of the num- ber of interruptions or the number of premises, locations or computer sys- tems involved. If loss payment relating to the first interruption does not exhaust this amount, then the balance is avail- able for loss or expense sustained or in- curred as a result of subsequent inter- ruptions in that policy year. A balance remaining at the end of a policy year does not increase the amount.of insur- ance in the next policy year. With re- spect to any interruption which begins in one policy year and continues or results in additional loss or expense in a sub- sequent policy year(s), all loss and ex- pense is deemed to be sustained or in- curred in the policy year in which the in- terruption began. (5) This Additional Coverage - Interruption in Computer Operations does not apply to toss sustained or expense incurred after the end of the "period of restora- tion", even if the amount of insurance stated in (4) above has not been ex- hausted. 6. Coverage Extension If a Coinsurance percentage of 50% or more is shown in the Declarations, you may extend the insurance provided by this Coverage Part as follows: Newly Acquired Locations a. You may extend your Business Income and Extra Expense Coverages to apply to prop- erty at any location you acquire other than fairs or exhibitions. b. The most we will pay under this Extension, for the sum of Business Income loss and Extra Expense incurred, is $100,000 at each location. c. Insurance under this Extension for each newly acquired location will end when any of the following first occurs: This Extension is additional insurance. The Additional Condition, Coinsurance, does not apply to this Extension. B. Limits Of Insurance The most we will pay for loss in any one occur- rence is the applicable Limit of Insurance shown in the Declarations. The limit applicable to the Coverage Extension is in addition to the Limit of Insurance. Payments under the following coverages will not increase the applicable Limit of Insurance: 1. Alterations and New Buildings; 2. Civil Authority; 3. Extra Expense; or 4. Extended Business Income. C. Loss Conditions The following conditions apply in addition to the Common Policy Conditions and the Commercial Property Conditions. 1. Appraisal If we and you disagree on the amount of Net Income and operating 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 cannot agree, either may request that se- lection be made by a judge of a court having jurisdiction. The appraisers will state sepa- rately the amount of Net Income and operating expense or 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 bind- ing. 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. 2. Duties In The Event Of Loss a. You must see that the following are done in the event of loss: (1) Notify the police if a law may have been broken. (1) This policy expires; (2) Give us prompt notice of the direct (2) 30 days expire after you acquire or physical loss or damage. Include a de- begin to construct the property; or scription of the property involved. (3) You report values to us. (3) As soon as possible, give us a descrip- We will charge you additional premium for tion of how, when, and where the direct values reported from the date you acquire physical loss or damage occurred. the property. Page 4 of 9 0 ISO Properties, Inc., 2001 CP 00 30 04 02 ? (ii) 30 consecutive days after the date determined in (1)(a) above. However, Extended Business Income does not apply to loss of Business In- come incurred as a result of unfavorable business conditions caused by the im- pact of the Covered Cause of Loss in the area where the described premises are located. Loss of Business Income must be caused by direct physical loss or dam- age at the described premises caused by or resulting from any Covered Cause of Loss. (2) "Rental Value" If the necessary "suspension" of your "operations" produces a "Rental Value" loss payable under this policy, we will pay for the actual loss of "Rental Value" you incur during the period that: (a) Begins on the date property is actu- ally repaired, rebuilt or replaced and tenantability is restored; and (b) Ends on the earlier of. (1) The date you could restore tenant occupancy, with reasonable speed, to the level which would generate the "Rental Value" that would have existed if no direct physical loss or damage had oc- curred; or (ii) 30 consecutive days after the date determined in (2)(a) above. However, Extended Business Income does not apply to loss of "Rental Value" incurred as a result of unfavorable busi- ness conditions caused by the impact of the Covered Cause of Loss in the area where the described premises are lo- cated. Loss of "Rental Value" must be caused by direct physical loss or damage at the described premises caused by or result- ing from any Covered Cause of Loss. d. Interruption Of Computer Operations (1) Under this Additional Coverage, elec- tronic data has the meaning described under Additional Limitation - Interruption Of Computer Operations. (2) Subject to all provisions of this Addi- tional Coverage, you may extend the in- surance that applies to Business Income and Extra Expense to apply to a "sus- pension" of "operations" caused by an interruption in computer operations due to destruction or corruption of electronic data due to a Covered Cause of Loss. (3) With respect to the coverage provided under this Additional Coverage, the Covered Causes of Loss are subject to the following: (a) If the Causes Of Loss - Special Form applies, coverage under this Additional Coverage - Interruption Of Computer Operations is limited to the "specified causes of loss" as de- fined in that form, and Collapse as set forth in that form. (b) If the Causes Of Loss - Broad Form applies, coverage under this Addi- tional Coverage - Interruption Of Computer Operations includes Col- lapse as set forth in that form. (c) If the Causes Of Loss Form is en- dorsed to add a Covered Cause of Loss, the additional Covered Cause of Loss does not apply to the cover- age provided under this Additional Coverage - Interruption Of Com- puter Operations. (d) The Covered Causes of Loss include a virus, harmful code or similar in- struction introduced into or enacted on a computer system (including electronic data) or a network to which it is connected, designed to damage or destroy any part of the system or disrupt its normal opera- tion. But there is no coverage for an interruption related to manipulation of a computer system (including electronic data) by any employee, including a temporary or leased em- ployee, or by an entity retained by you or for you to inspect, design, in- stall, maintain, repair or replace that system. CP 00 30 04 02 © ISO Properties, Inc., 2001 Page 3 of 9 Ci 3. Covered Causes Of Loss, Exclusions And Limitations See applicable Causes of Loss Form as shown in the Declarations. 4. Additional Limitation - Interruption Of Computer Operations a. Coverage for Business Income does not apply when a "suspension" of "operations" is caused by destruction or corruption of electronic data, or any loss or damage to electronic data, except as provided under the Additional Coverage - Interruption Of Computer Operations. b. Coverage for Extra Expense does not apply when action is taken to avoid or minimize a "suspension" of "operations" caused by de- struction or corruption of electronic data, or any loss or damage to electronic data, ex- cept as provided under the Additional Cov- erage - Interruption Of Computer Opera- tions. c. Electronic data means information, facts or computer programs stored as or on, cre- ated or used on, or transmitted to or from computer software (including systems and applications software), on hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other reposito- ries of computer software which are used with electronically controlled equipment. The term computer programs, referred to in the foregoing description of electronic data, means a set of related electronic instruc- tions which direct the operations and func- tions of a computer or device connected to it, which enable the computer or device to receive, process, store, retrieve or send data. 5. Additional Coverages a. Civil Authority We will pay for the actual loss of Business Income you sustain and necessary Extra Expense caused by action of civil authority that prohibits access to the described prem- ises due to direct physical loss of or dam- age to property, other than at the described premises, caused by or resulting from any Covered Cause of Loss. The coverage for Business Income will be- gin 72 hours after the time of that action and will apply for a period of up to three consecutive weeks after coverage begins. The coverage for Extra Expense will begin immediately after the time of that action and will end: (1) 3 consecutive weeks after the time of that action; or (2) When your Business Income coverage ends; whichever is later. b. Alterations And New Buildings We will pay for the actual loss of Business Income you sustain and necessary Extra Expense you incur due to direct physical loss or damage at the described premises caused by or resulting from any Covered Cause of Loss to: (1) New buildings or structures, whether complete or under construction; (2) Alterations or additions to existing build- ings or structures; and (3) Machinery, equipment, supplies or build- ing materials located on or within 100 feet of the described premises and: (a) Used in the construction, alterations or additions; or (b) Incidental to the occupancy of new buildings. If such direct physical loss or damage de- lays the start of "operations", the "period of restoration" for Business Income Coverage will begin on the date "operations" would have begun if the direct physical loss or damage had not occurred. c. Extended Business Income (1) Business Income Other Than "Rental Value" If the necessary "suspension" of your °' operations" produces a Business In- come loss payable under this policy, we will pay for the actual loss of Business Income you incur during the period that: (a) Begins on the date property (except "finished stock") is actually repaired, rebuilt or replaced and "operations" are resumed; and (b) Ends on the earlier of (1) 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 had occurred; or Page 2 of 9 © ISO Properties, Inc., 2001 CP 00 30 04 02 ? COMMERCIAL PROPERTIt CP00300402 BUSINESS INCOME (AND EXTRA EXPENSE) COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "bur" refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to Section G. - Defini- tions. A. Coverage 1. Business Income Business Income means the: a. Net Income (Net Profit or Loss before in- come taxes) that would have been earned or incurred; and b. Continuing normal operating expenses incurred, including payroll. For manufacturing risks, Net Income includes the net sales value of production. Coverage is provided as described and limited be- low for one or more of the following options for which a Limit of Insurance is shown in the Decla- rations: a. Business Income including "Rental Value". b. Business Income other than "Rental Value". c. "Rental Value". If option a. above is selected, the term Business Income will include "Rental Value". If option c. above is selected, the term Business Income will mean "Rental Value" only. If Limits of Insurance are shown under more than one of the above options, the provisions of this Coverage Part apply separately to each. We will pay for the actual loss of Business Income you sustain due to the necessary "suspension" of your "operations" during the "period of restora- tion". The "suspension" must be caused by direct physical loss of or damage to property at premises which are described in the Declarations and for which a Business Income Limit of Insurance is shown 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 personal prop- erty in a vehicle, the described premises include the area within 100 feet of the site at which the described premises are located. With respect to the requirements set forth in the preceding paragraph, if you occupy only part of the site at which the described premises are lo- cated, your premises means: 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 a. Extra Expense coverage is provided at the premises described in the Declarations only if the Declarations show that Business in- come coverage applies at that premises. b. Extra Expense means necessary expenses you incur during the "period of restoration" that you would not have incurred if there had been no direct physical loss or damage to property caused by or resulting from a Covered Cause of Loss. We will pay Extra Expense (other than the expense to repair or replace property) to: (1) Avoid or minimize the "suspension" of business and to continue operations at the described premises or at replace- ment premises or temporary locations, including relocation expenses and costs to equip and operate the replacement location or temporary location. (2) Minimize the "suspension" of business if you cannot continue "operations". We will also pay Extra Expense to repair or replace property, but only to the extent it reduces the amount of loss that otherwise would have been payable under this Cov- erage Form. CP 00 30 04 02 © ISO Properties, Inc., 2001 Page 1 of 9 0 VERIFICATION I, Gaa Bower, President of Automatic Bowling Centre, Inc., Plaintiff in this matter, do hereby certify that the facts set forth in the herein Complaint, are true and correct to the best of my knowledge, information and belief. I understand that this statement is made subject to the penalties for unsworn falsification to authorities contained in 18 Pa. C.S.A. section 4904. Date: Cat4i Gary Bo er Sts „? , . -?? •_--E n ' 17 r? r l