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Item C31 .. BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: April19. 2000 Bulk Item: Yes ~ No Division: Management Services Department: Human Resources/Risk Management AGENDA ITEM WORDING: Approval to renew Property Insurance with Allianze Insurance Company, including excess flood insurance, at an annual premium of $216,996.78 effective 4/1/00. ITEM BACKGROUND: Current property policy expires 4/1/00. This is first year renewal after last year's market bid. The County increased its property insurance values from $82,506,726 to $83,163,453, an increase of $656,727 in blanket coverage. This includes ALL buildings and contents owned by the County, EDP values, Contractors Equipment and Communication Towers. Coverage is on an all risk basis. All coverages include Sheriff's Office property. PREVIOUS RELEVANT BOCC ACTION: Accepted Proposal from Allianze Insurance Company, 3/10/99 - full annual premium $192,755. STAFF RECOMMENDATION: Renewal. TOTAL COST: $216.996.78 BUDGETED: Yes X No COST TO COUNTY: $216.996.78 REVENUE PRODUCING: Yes No X AMOUNTPERMONTH YEAR_ APPROVED BY: County Atty _ OMB/Purchasing _ Risk Management ~ DIVISIONDIRECTORAPPROV~k ' ~~ James L. Roberts DOCUMENTATION: Included: X To Follow: _ Not Required: _ DISPOSITION: Agenda Item # ~ I ... 04/04/2000 09:44 8132871041 INTERISK PAGE 82 I NTERISK CORPORATION Con.ultanta 1111 North Wee..hore Boulevard Suire 208 Tempa, FL 33607-4711 Phone (813) 287-1GW fllClimi~ (813) 281.1041 Ri.1I. Mln8F"Denl Employee Benefill Apri14, 2000 Mr. Wayne Robertson Risk Manager Monroe County 5100 CoDCSC Road, Room 205 Key West, Florida 33040 R~: Propmy Ri!IIewfll Dear Wayne: Marsh's proposal for the Coumy's renewal of its property insurance has been reQCived aud reviewed. It has been confirmc:d that the tams and conditiODS are consillmt with last yar's policy, however the premium bas been raised from $191,395 to $216.997. This repRSCDfa a $25,602 or a 13% increase. In ncenc mootbs iDsurcn have tigh~ tbmr IIDdenvritida policies aod have mised 1hoir prices. Iacrcucs raugiDs from 12% to 25% ba\'C been experieDced. I reccady visi1ed a diem that had a . 150% iDcreue in their propeny premium. Based 011 the filet tbat the County was ablo tD JllSlinr:gin last year's ~l at prorecrioa aod me iDaease is well within what the industry is cum:atly cbargiog, it is reccmunaJded 1bat the County aa:ept Marsh's proposal for the 200012001 polU:ytam. As always, if you have any questions. please do DOt besitatc to call. Cordially, INTERlSK CORPORATION /~~ Sidney G. Webber CPCU, ARM PROPERTY PROPOSAL FOR MONROE COUNTY, FLORIDA Policies Effective April 1, 2000 Prepared By MARSH USA Inc. One Financial Plaz~ Suite 2400 Ft. Lauderdale, FL 33394 MARSH An MMC Company Executive Summary Property Proposal Sample Policy Form Table of Contents 1 2 3 MARSH An MMC Company Executive Summary Allianz Insurance Company has agreed to renew the property policy with the same limits, deductibles, terms and conditions as the expiring policy. When the appraisal is finalized, the policy can be adjusted accordingly. The premium has increased by approximately 13%, which is in line with the trend in property rates. In fact, carriers are requesting 15 to 20% increases in some cases. Allianz has revised their form this year. A sample of the form is included within. A simplified schedule of most of the exclusions on the policy is included within this proposal. It is advisable to review these exclusions in case any of them may be a problem. It is possible that some of the exclusions could be changed if necessary for an additional premium. Since Boiler and Machinery coverage is not included within this policy, a joint loss agreement should be attached recognizing the Boiler & Machinery carrier. Please provide the carrier's name and policy number for this endorsement. The current policy on this proposal does not include coverage for extra expense. Municipalities usually do not incur a business income loss, but a cost may materialize when it becomes necessary to set up operations at alternative locations due to a covered loss. This would be a loss covered by Extra Expense. Please advise if coverage for Extra Expense is desired. We at :\l:1rsh USA Inc. look forward to working with you in the coming year. MARSH An MMC Company !""'~"',",,"""'"'''!Il!'lli'I!m"'I'~"" ,,~"" '''1""''"' ""11'1" '''III'''''',,,",,,,",,,,,, " 'I , """J Carrier: Property Policy Allianz Insurance Company Best's Rating: A++XV Effective Date: 4/1/2000 to 4/1/2001 Interests Covered: . Real and Personal Property . EDP Equipment . Contractors Equipment · Communications Towers Perils Covered: Risks of direct physical damage or loss including flood and earthquake subject to policy exclusions. Locations: Per the schedule of locations and values on file with the Carrier Limits of Liability: $83,163,453 Per Occurrence Valuation: . Agreed Amount/Replacement Cost · Actual Cash Value for Contractor's Equipment Sub-limits: $5,000,000 $5,000,000 $ 500,000 $ 500,000 $ 500,000 $ 100,000 $ 100,000 $ 100,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 5,000 $ 50,000 $ 50,000 Annual Aggregate per occurrence flood Annual Aggregate per occurrence earthquake Newly acquired property (30 days) Demolition Cost per occurrence Increased Cost of Construction per occurrence Miscellaneous Urmamed locations Exhibition, Exposition, Fair or Trade Show Property in the Course of Construction (Applicable to existing buildings) Pollutant Clean Up & Removal - Annual Aggregate Radioactive Contamination Expediting Expense Defense Costs Protection of Property Fire Department Service Charges Royalties Leasehold Interest MARSH An MAte Company Property Policy (continued) Deductibles: $ 5,000 $ 5,000 $ 5,000 $ 50,000 $ 50,000 $ 100,000 $ 100,000 $ 100,000 $ 25,000 $1,000,000 Excess Each occurrence for EDP Equipment/DatalMedia except for Windstorm & Hail Each occurrence for Contractors Equipment except Windstorm & Hail Each occurrence for Communication Towers except Wind, Hail, Flood & Earthquake Each occurrence for Real & Personal Property less than $250,000 except Windstorm & Hail Each occurrence for Windstorm & Hail for Contractors Equipment Each occurrence for Real & Personal Property equal to or more than $250,000 except Windstorm & Hail Each occurrence for Windstorm & Hail for EDP equipment /Data/Media Each occurrence for Earthquake Per location, each occurrence for Windstorm & Hail for Communication Towers/ $50,000 Maximum Per location, each occurrence for Windstorm & Hail NFIP per location, per occurrence for Flood whether purchased or not Coverage To Include: . 90 day Notice of Cancellation / 10 days for non-payment . 90 day Notice of Non-renewal . Inadvertent error in describing a scheduled location . Personal property of employees . Debris removal-25% . Pair, set or parts · Vacancy provision with notice to carrier and maintenance of fIre protection & alarm systems Exclusions: (Included but not Limited to) Property not Covered: . Money, securities, valuable papers & records, precious & semiprecious metals & stones, jewelry, furs & fme arts . Animals, land, lawns, standing timber, plants, trees or shrubs & growing or drying crops · Water, aircraft, watercraft, motor vehicles, motorcycles or motor scooters . Property in transit · Bridges, roadways, dams, dikes, walks, patios & other paved surfaces . Property in the course of construction (except as shown in sub limits ) · Overhead transmission & distribution lines Perils not Covered: . Volcanic Action . Animals, vermin or insects MARSH An MMC Company Property Policy (continued) Perils not Covered (continued): · Dampness of atmosphere, dryness of atmosphere, extremes of temperature . Service interruption · Fraudulent, criminal or dishonest acts or omissions · Nuclear reaction or radiation or radioactive contamination · War, insurrection, rebellion, revolution, civil war, usurped power · Confiscation, nationalization, commandeering, requisition or destruction of or damage to property by order of the government · Indirect or remote loss or damage, delay or loss of market or interruption of business · Faulty workmanship, mateiral, construction or design . Inherent or latent defect · Unexplained or mysterious disappearance of any property or shortage disclosed by audit or taking of inventory · Accumulated effects of smog, smoke, vapor, liquid or dust · Wear & tear, deterioration, depletion, erosion, corrosion, mold or wet or dry rot · Settling, cracking, shrinkage, bulging or expansion of pavements, foundations, walls, floors, roofs or ceilings · Shrinkage, evaporation, leakage of contents, change in flavor or texture or fInish, decay or spoilage · Loss to docks, piers or property located thereon when caused by action of water or ice or impact of watercraft · Explosion, rupture, bursting, cracking, burning or bulging of steam boilers & associated equipment · Loss or damage to media/data when caused by an error or omission in machine programing or instructions to machine · Loss due to faulty planning, zoning, surveying, siting or developing property, design, specifIcations, furnishing of work, materials parts or equipment, constructing or maintaining facilities . Mechanical or machinery breakdown . Asbestos . Pollution · Electrical injury or disturbance to electrical equipment or electronic equipment caused by artifIcially generated electrical currents · Water damage (surface water, backing up of sewers or drains, seepage) · Electronic date recognition Annual Premium: $216,776.00 216.78 FL Surcharge 4.00 Impact Fee $216,996.78 Total MARSH An MMC Company 03/16/2000 1~:08 riLLIANZE - 919547612608 ~~o . 305 [;)03 Allianz Insurance Company SECTION I - THE SCHEDULE A. Insured B. Policy Period From To' C. Limits of L1Jlbllit)' Refer to c:onditiQn D, of Section n . General Q;)nditlone oflhis "policy" for apph~alion ofthc following Policy Limit l\.f\d SI.lblimit9 1, Policy Limit: $ per "occu,rrence", 1. Sublimi1S: ('" (\ , (~\ '\ \ The fol1owing Subli' pply...1f\ ~~ ~ifjed\AduhlOnal Coverage Extensioll~ and Q;)verage Pans er lbj,s. ~UCY:"" !{loh SUb~\I)}i~ 1 app1l to all loss or damage alising 0 one ~~~C~;..' '~~t~. ~ ~'h5'nvie ,st~~~,o\~fer \0 con~it,ioll D., of Section n nera tl~~\~\thi~'~ ~Iyy:r for ,a~p~,~'O't,~I'IY Subhmn specIfied as an ao ua t~ \\ r- ",) f \. r-C'. I ,\,~_"" O~ \ ' ) \\..'''\ '-,,' 1"\ {. ."1'" . " " ,,/~ _,~;F'W"''i:l','''' C.\\(> \ . \"" '~ , pS'~ L,~ij-'~~nt an ~fcanic. Action Endorsement C'<-.cJ ~erage under thIs "pobcy") - anrnw \~ ", '" ,~ ,ro,), ':> '~ '\ \\'. Ilggre "i\\'., \:'1', C \.... f,l',) 'I ) \~'<~' t. ,,~ ':" ,,' C. ~ , .,..l'~"..., ;:\~\ \ \ ,- "J\, ' , C). \ f'- $ Flood and WalerOamage Endorsement (if coverage provided \lIIder this "policy") - annual aggregate .-' ~ f\./A $ 100,000 $ 100,000 ~ 1001000 $ 100 000 $ 100 000 EXlrn Expense (tf coverage provided under lhis "poliC}~1 ) Newly Acqulred Property Miscellaneous Unnamed Locations Exhlbll.iOIl, Exposition. Fnir or Trade Show ProperlY illlhe Course of Construcuon Building Ordinance pey (Ed. Cl9/99) Me /lib'GIl{lfge Series Page :2 of 39 83/16/2880 15:88 RLLIANZE ~ 919547612688 NO.385 [;l04 Allianz Insurance Company $ 25.000 Pollutant Clean Up and Removal. annual aggregate: !l 25.000 Rad,oactlvo Contamination $ 25.000 Expediting Expenses S 25.000 Defense Costs S 25,000 Pro~lion of Propeny $ 5,000 Fire Dcpanmcm Service Charges $ 50,000 Roytlllics $ 50.000 Leasel1.o1111ntere$t Other c:.nQorsomcnts atlaChed ~o this "policy" may conUlln additional SubJimits, Rd'er to the variouB endorsements fOT the detail, of such S\.Ibhmili>, D. neductjblc8: \C:\\,\\ \ Refer to condJ(jon E, lion U\\~~\~~Qn~6 's "policy" Cor application of the follow) llc;t~'b (~\~\ \' \\\ \ ~S.) ... '..' , " \ ""... .J \.' " \ \.J" .$n $ '\ '. ~ S~.. liS, ""~IJ.ll':~~ below ~r .. specified )-" \~h~rany en~. ~. ne'ft. ((s), aU 84:~ (g\t s "polley", ,,- "",r. ,("\)., ,.:.;\,_" (-<: ~,' ~ \,." " .',.~," '. '\~) ,i..", />-.... \.. . c.... .' :C\ .,,,,/,,. C . \' I .' '. c (..., ovcrnge. l.l,r-' ..\.' '\'. ,;. ~,.\~ .: t, ..... '. \ "\ ".' <' ,t,l . I ,1, I'. . ~ Cov~rage unde,.' ~~?,G .),9Wt: ~~ ply in acc?rdQnce with the C~ragc Pans speCified below \a~ Inwte~D coverage is pravtded under lhis "policy" [or any Coverage Pan speqtl.ed"bC)ow as Not Insured, E. Coverage p&rt A . Property Damage (] Rei\l Propercy [1 Personal Property Coverage Pan B . Business Interruption: Gross Earnings Coverage Pa,n. C . Extra B"pense Coverage Pan D - Rental Value PCF (E.d. 09/99) Ale AdvlInlllge Series Page J of 39 03/16/2000 1~:128 ALLIANZE ~ 919547612608 NO.305 "n= ""-'- Allianzlnsurance Company F. SchecJuled Localions: G. Notice of CantL\lIntjon: The foUowing number of dllYS' notice of cancellation from the "company" shall apply hereunder, in Elccordance with Condition f, of Set;tion n - General Conditions of I.hi.s "policy" , ThlTlV (30) days, except ten ()O) days 1I\ [he event of non-paymont of premtum. or as olherwise required by statute , -V~' r \, \...., . ~" ' :~\\ .,,'~ \ ("'\ I, \ \\ '," \' C..' o,'.., \ ,......-.....\ ,\, " \\ ,\ "';1 -', \ /''\ Ie,',., \\ \, ,\ "" " , " ....--_ \ r"', \ - _ \ ,\ \ \~ .." , ' 1\ G2\")\")\\~:\)" ,.,'1 . ',-,' ..... ,\' I, \ ",', , \ '- - ,-" \ '... \ " '... r;f) --,'\ \" ~ .....~ . .r ",- "'\ r. \ ..... II ,. c-<I-'.o, :". ',.\'0;:,.' ,.-,. ,") '\...- . .' '.~ '1"\' /,- '-......./ ,f (,:~-:"',"J-\~, (.\,{',I, " \\L \.: (' ~)..t"': \ "\ \ ,.... 1.\" ~,,, C~\ , '. ... " ~c.'t~. ,Jr <",'- ~". ( ~,.." ,'C't \(. \ . ~ ,~\i'-' \, PCF (Ell. 09/99) ...llC ....d.,lIllllIge Set;", Page.. of 39 03/16,2000 15:08 ALLIANZE 7 919547512608 NO.305 Gl06 Allianzlnsurance Company SECTION II - GENERAL CONDITIONS The following ,ondJtlons apply to QU sections of thi, "policy". including any endonemeDts attacbed hereto. AddiCional conditil)ns may apply to the individual Covl!ragc Pans of tbjs "policy" and 10 endor$emcnl8 anlched hereto. Plco8e refer to the appropriate CovcragcParu and cndonemenU ror details of these 'ldditlonAl conditions. A. TItle. of Paragrl\phs The several titles of the vllriOUIi paragraphs of this fom (ana of endorsements and supplemental contracts. if any. now or hereafter attached to this "policy") lire insened solely for convenience or reference and shall not be dilemed In any way to limit or affect provisions to which they relate, B. Effective Time c. The time of mception lI.Dd Ule Hme of expir' of lpil~'tY" IInd of any schcctu1e or endorsement attaChed shall be 12'01 A tanw~~\c mailing address of the first Na~etl InsureQ &hown Ifl t~e Co n ~oli~,~~ ~io~, \ l'o t, extent ,that coverage in ~\is "polley" r~place5, COVCTll oLher ,PGI,\~ '~e~~~~ g ~~n..JSCUl d TIme on ~e mceptlon dale of U\lB "poli .. overa~tr(lm& :'~~l"~~ \ ~!Y' J\Ot ~~e t'fecttve unul such other c:ovcrnge has te If\81ed,~ '\ \ \ (1\"\\ ,~\ J '" '0/" ,', " @""\ ~,/\"'_'';' ,,) - \i"'~'~"1 -),' 0' '\ -',' \' ,- ~ ~ ~~.() -.,,,: ':, <.'=> " ,\, ~' c', f'.~l I tf\,-I", ,< \,.\";.1\ ,r Territory ("'0 ) '-- ~,..; '\ (J, I',l.'... ' '---.-" C\\;~,,('\ (i'p..,' The inSllrance pravi ~rthj~\R~lJci; ~;~l:i~sto "se ed lOCAtions" and tQ O\h:T "locations" as described under tll vltlioos e~n~r) ..~tm ems and Coverage Pans to this "policy", all wirhin the fifty (SO) 8\2 S Of the ,J)Jl B of Amenca. Llle District of Colwnbia, the Unitl:d SI.3ics Virgin Islands Ilnd,PuerlO)ia'" .,-,,,,.- D. ApplicllTion of Limits of Liability and SlIbHmiu The "company" shail 110t be 1i9ble under this "policy" for more than the Policy Limit (as specifiea under item C.), of Section I . The Schedule of this "JKllicy") for all loss or damage ansing aut of one "occurrence", Notwithstanding !I,n)'thing to the comral)' comained herein. in no event sha,ll lhe habilil)' of tne "compllny" exceed lhis amO\l.n1 in lUly one ~occurrcncc", irrespective of the number Ot"locations" involved in the "occurrence", This "policy" also conHlins Sublimlts. as specified unclcr ilelO C,2 of Section J . The Schedule of this "policy" and under the variolls eXlension5. cndorscment.s and Coverage: Pans 10 thi6 "poJiC)'", These Subllmil.s arc pan. of and not in addition 10 thc Policy Limit. These Sublimits do net incrcIl5e the Policy Limll or tiny other SublimiL, The "compflny" shall not be 1i00ble LInder each stated extension. endcT'liemcnI Of Coverage P<lrt for more than the Sublimit specified for such extension, endorsement or Coverage Pan peF (Ed, 09/99) Ale Adl'fUllfgt SerleJ Pllge 5 of 39 03 ' 16/2000 per (Ed. 09/99) Ale ..Iu.'anrllge Series 1:::08 ALLIANZE ~ 919547612608 NO.305 [;10';' Allianz Insurance Company If the Subhmir fOT an extension, endorsernenl or Coverage Pan is speciJled as an annual aggregate, such Subhmll shall apply in the aggregate for flU losses WIder me applicable extension. endorsement or Covel'llge Pan occurnng during Lhe "policy period", If me "policy pcnod" II; greOleT than twelve (12) momhs. sucb Sublimi1 shall apply in the aggregate to all losses occurring during each 1welve () 2) month pcnod. beginmng with the inception date of the "pollcy" and each subsequent anniversary date, The foregomg limils shall be the maximum amount collectible under this "policy" for loss OJ damage resulting frorn the perils insured against by this "polICY", regardless of whether (he loss iovotves Coverage Part A alone, or both Coverage Part A and another Coverage Part of this "pohcy" E, AJlpliclllion of Dcductiblc8 F. All claims for lOBS, damage or expense ari!ling out of anyone "occurrence" shaH be adjusted as one loss, The "company" shall nol be liable unLiI the amcUIH of such loss exceeds the amount designated under item D, Dc:duC1.iblcs. of Seclion I . The ScJwc1 this "policy", and thtn only for the "company's" share of such excess All cavern nsions ~~ endorsements attaChed to this "p~licy" 5htl.11 be subject to Ihcse dcd ' pravi~~\il"~. ~ .~,gna.ted amounts, unless otllerwlSC 9latcd under such covemge SIOM I~.r",~~~~t~, \ ~', \ .-.J,'. \ ~~\\ \ "~ If any deductible U IS "PQli~.\,fexp~~\a~\f\ WallJnf,Pcnod, l c "company" shall not be ',iablo for an~ I S8 ~\~~:--.U~der~~~~\~i~,~''C.o.~.~roge :p.'>~(~ sion or endo~menl aunn:; lhe penod flurn~~ ~reS&ett.~,,~~~Tl8'\)\e W~~lng.. ~er~~.oi'u penod of urne to commence with the 0 tlrren: \ Of\.b6.losS or da!IWFn~r~ here~.lerOf ('-J ).....J (."" T,r; '.' '....\, . ,,'<)\ , . \ ..... II c..~.,..~ .,.. .\"~',' '.; ~ .r \( U" ' c ,: ;:;, '(.'1' ~~<.. ::> ,-, - , Cancellation \\\'/J \' r (::~", '"It I i'-'\ ' l'\' \" - I"~ ',J v..\'.J\'-' This "policy" may be cfln~et1ea~tt1C\'8J]l.Jli) ed Insured shown in the &:hedulc by mailing to the "compaoy" wrinon (loi~ce- s~1\en thereafter such cancellation shan be effective. This "policy" may be concelled by t1\e "company" by mailing to the first named Insured at the mailing lIddress shoQ.'n in thi, "policy" or the last known Address wnllen notice stating when Ihereoltter such cancellation shall be effecrive. The effective date af such canceUar.ion shall not be prior to the date such notice is mailed by l11e "company" plu5loe number aT days gpecined under item G" Notice of Cancellation. of Section I - TIle Scbedule of this "policy". The mailing of nOliCt: as llfoTementionecl shall be sufficient proof of notice and the effeCtive date of canceHmion stated in the nol ice shall become the end of the "policy period" De)j\lcl)' of such wrillcn notice ciLhcr by the Ins\Lred or by the "compll.IlY" SllaJl be equivalent to lTlAiling, If this "policy" is cancelled by the: "company", any premium refund due shall be calculated on 8 pro.r.\la basis, If this "policy" is cancelled by the Insured. any premium refund due shall be calculated using t.he "company's" standllrd shol1-r,ue tables, G. Permis~ion Pemission is granted by the "rompany'" for tne Ins~rcd \0 erect new buildings and SLTUCLures on and to make alterations, ndditions and repairs to "covered locations"; PlSgC (i of 31) 0:::/16/2000 15:08 ~LLI AtiZE ~ 919547612608 NO. 305 Gl08 Allianz Insurance Company 2 for Sllch use (If the "covered locations" as is usual and lOc:idenlal 10 we IJ\5llml's business B. Vlltsncy I. Pennlssion 18 granted by the "company" for the Insured to cease operations or for buildings at "covered locations" to remain vacant or uoQCt;upied, provided fire protection and watchman and alann services are properly mantained by the Insuroo, and further provided (hat written notice is given 10 tbe "company" by lbe Insured prior to ~he siX1ieth (60th) consecutive day of such c.,ssation of operallons, vacancy or unoccupancy, lfOle Insured fails to comply with any or all of tbe aforementioned provisions. all coverage under ,his "policy" shall cease. bul only as respccIS the buildings(s) lila, is/are vacant or unoccupied, For tbe purposes of this Condition, vacanl shall mean comaining no contents penaining to operAtions or acuvities CUS[OR\llJy to occupancy of the building, Unoccupied sball mean conlaining contenlS pcnammg to the occupancy of (he building while operations or oL.'her customary activities arc 81.1spcnded, but shilll nOl include any time when CUStomliry activities Are suspended due to circumstances that are usual to the described occupancy, !II. C.nlr.1 (?C'~ The iRSlITaRce provided by tbl6" . Y' ~J18l1Slot\;."~ \ fIlilure 011110 Insured 10 complY with 8llY provisions 0 IS '):t~r,Cy: k re~. snr po,ll!'EIn 'Q[ the "covered locations" over whicll !.he JnsurC(l h ~rPI\",)"" \\ \'1 ',,-' ,l~\ .~. ,'~ \ r' \ , ,'"\' \" (', ,"~' " '" 1..>' \\ --../\\ \" \. " ,,' "~ <' \' ,', ,'. \ . ~-, \ "") " t' .,.' , \,n f" . ,: \ Error In DelC tit:-) \ \, ) \",>. '.. ...O~ ,\}').,(.>~,..,.. '-,--- \. \ . " ~ ., , ,~ ., ~ _ .. \ \ ';. ","-' \i';\'" The in~ance pro, ,~)lti~ "~~tY:, ~l~il\\~or:& 'Pre ' d by any inadvertent error by the Insured In the descn all of.~ny.,f-l'91~~~ l~cl:ltlon" "\\".1 '~", v (,~.. , .'" ,,(~ ~\:;> \t.\.> '\(, Duties in the l:vcnt of Lo ()"'~" \t'- In the event of lass or wunage' sured againsl by this "policy". the Insured shall: J. K. 1 give immedia1e notice I.hercof to the "company"; 2, lake aU reasonable steps 10 protect the property insured hereWldcr from further 106& or dUl11Age; 3, as soon [hereafter as IS prflc1icable render a, sunemenl [0 the "company" signed and sworn 10 by the Insured Slating the knowledge and behef of Ihe InlOured as to the time and cause of the loss or damage. the interesl, of the In&tlred and all other, in the propeny. nnd all ol,her conl.TflCts of insurance. whelher vaiid or nOl, covering in any manner lhe loss insured against by Lhis "pollcy"; 4, ex.hibit to any person designated by the "company" all tllilt remains of nny propeny here; n described: PCF (Eel. 09/99) Ale Adwl1l14C" ,~"'res Page 1 of 39 03/16/2000 15:08 RLLIRNZE ~ 919547612608 ~jO . 305 [;10'3 Allianz Insurance Company 5. 9$ often as may reasonably be required: a submit arul. in so far as is within tbe Insured'5 power. cause me Inswafs employees and others to submil w cxammations under oath by any person named by I.he "compilIlY" IUld subscribe the same; and b, produce Cor eXaminAtion all writings, books of account, lax retUrns, bills. invoices and other vouchers, or cenlfied copies thereof if originals be lost, st such reasonable time arul place <IS may be deslgnated by me "company" or its representative, and permLt extracts and caples thereof to be made. No !lUch examination urulcr a3111 or examination of books or documents. nor any other aCI of the "company" or any of its employees or representatives in connection with the iJlVcsljgation of any loss or claim hereunder. shall be deemed a waiver of /my defense whicb the "company" miglu otherwise hove with respect to any loss or claim, but aU such c"amina1.i.on, aod acts shall be deemed to Juwe been made ar done without pr~iudicc [0 the "company's" liability, L. Subrogntiofl \'~ In the evenl of any paym .de he ~,~ ~~J. .. II be subrogated '0 aU the Insured's rigllta of. ery ~f~~n. ~\ ~ ~~n~,~~'\O g ni lion and Ole lnsuRd sllall execUle and d lYer m~.. it;l\l,~,d\P*P r ~rla,go.,",l1Slevef ~ necessary 10 secure such righr.s, The in r ~~.n ,r ~a~\nol, iri"8h,? t~ 6~ _nsured waive by express wrmen agreeme ~~,~ \ JOSS, ~y. or all ~S~,?Qf re~ya.,0''"':aIRltin6oiJ pany (or 105$ or damage insured against li t~ity'" ThCt:l,qsu.fflf~" ~~ft~g After loSi to prejudice the subrogation rights e "comp~)!~~-~;.\ '\ ~.~ p..'~J-l.... \\~ tl lto'. ,-I ' . r C:'. "C' .or. ,\ ,.) r C ".' \ \.\. . '\ '," (l~ h'" ~ \ ',' 'V-.\S'f., SBlvRgc or Recol'c \...~~:. "1'\( I c,'l(;.'..\ When, in connection Wlth.ertfloss hereunder, any salvage or recovery is received subsequent to the paymem of SllCh los6 b)' the "company", ',he amount ohile loss ,;haJl be recalcu.lated to take inl()- consideT'a~ion such saNage or recovery Any amounts lhus calculated to be due the ;;company" or t.he Insured from the other sbllll be paid promptly, M. The expenses of all proceedings necessary lO obtain iuch sa.lvage or recovery shall be apponioned bctween the "company" and the Insured in the ratio of their respective intcrest in such salvage or recovery ElS finally settled, If there ej,ould be no recovery anel proceedings are conducted solely by lhe ;'COmpllJ'lY", the expense th~reof 6hnJJ be borne by the ;<company". S. Non-Reduction of Limits of Liability ~xcept wilh respccl 1.0 all)' I\ggreg:nc Limlls of Lillhilit.y hereunder, any loss shall not reduce the LilTllts of Liabihly of lhls "polley" PCP CIel, 09/99) Ale Ad\!Q1lrage Suies PRge Q of 39 03/16'2000 1=:08 ALLIANZE 919547612608 ~m . 305 G110 Allianz Insurance Company O. Bailee Clault The insurance provided by \.his "policy" shall not inure direcUy or indirecLly [0 the benefit of !!flY common carrier nor. withoUllhe prior a.ftirmative consent of the "company". to the benefit of any other b1Ulee, by &iipulatioJl and bill of lacting or otherwise P. O1her Insura"~c This "policy" shall Jlot cover to the extent of any other insurance. whetbcr prior or subsequent hereto in dale EU\d by whomsoever effected, directly or iruhrectly covering lhe "ffiC propertY against the same periJ(~), and ~lle "company" shall be liable only for me excess amount beyond the amount due from such mher insurance I1nct subject or.herwise to all terms, oonditions. exclusions. and Iimilb (including Limits of LUlbility) contained in this "policy" Q. Exccs. 11I1,u"lUIce R. Permission is glomed by the "company" for the Insured 1 rcbase ~~ss insurat'lcc over the LimlLS of Liabil i ~y 6et fann in this "policy" without ,." )O~0~~ ", and the exisrence of such excess insurance, if any, snaIl not redu Iiabil~' _Qclt'ihis-~ ~l ", ~\ ~ \ ' ': ("'\\ \.'- :\ \\ \,/,,\) '.,) r"\ '\ \1, \\ \, ) ./"" ' (\'" \' \\ I'. ,\.,,- ,('l. Underlying TJl9UrallCc \ \,\ \ '\".....\ ,\ \'"i \., ';J'i~\ .':. ',' ~,., ..) \ J\\....\ '.- r-,'}':-l' ,\\("~" 'ci Permission 1S gnnted by e~~ny~0[Qr\tt1~.Inlltu-ed l~jnt~~~,_U~ing in nutCe on aU or . any pan of the Oedu ibie&":"~\t;J'Qs "Policy" ,~P\<O~l '*3l.l~i06-\fb tlUs" ley". and the elastence of such underIYin~t8JiCe;'j( a~f6~1i.{lOr.~~;li-any liob" UJl~r this "policy" If, however, llle limits of su h underl~ng"'R~uiinw,~xcCed th uclible that would apply under ,his "policy", then said \lCUb.}e noreui!dtT ~aU be' cased to equal1he hmits of such underlying insurance. ~J,I" '.\.;./,,' C. ~f"J . \ ~:-';;. '):,.()f.;\ \' '~'}" \ f', , s. Liberall2l1tion If c1unng the period thAt insurance is in force l.lnder this "pohcy", or within fcny-five (45) days prior to the inception thereof, on behalf cf the "company" there be filed wilb and approved or nccepted by tho insurance supervisol)' authorll.ies. in confoT1Tlity whh law. any changes in the forms or endorsements attached to this "policy", Dr ,he rules or regu.llIlions applying therelo, by which ~his insurance cO\lld be oxtended or broadened wilhoUl UlCrellsed premium charge. by endorsemem or substitution of form, then such eXLeoded or broadened insurance &h8,11 inure to the benefit of llle Insured as though s\Jcb endorsement or subs~ltution of form has been made T. ConforplUy lO Sl8JulC Terms of thu "pobcy" which lllC in conflict with the S18tU!.e& of the 't..'1ie wherein l.his "policy" is issued are hereb)' amended to COnfOTllllO such S1.lltnles. PCF (Eel" 09/99) Ale ,-JdwuuQ(!e Series Pagc 9 of 39 03/16/2000 1:::08 RLLIANZE ~ 919547612608 NO. 305 [;11 Allianz Insurance Company U. Changes Thl5 "pohc( contmns all of the agreements between the IJ\5Ured al1d the "company'" concerning the insurance afforded, The first named Insured in the Schedule is authorized to make changes in the terms of Will "llolicy" wnh the consent of tlle "company", The: tCnllS of this "policy" ~n be amended or waived only by endorsemem issued by the "company" and made a pan of this "policy" . V. Eumination of the Inlurcd's Book.! and Records I. The "company" has lhe riSh1 (0: a make inspectiolls and su.rveys at any l:ime; b give the Insured reportS on the cond,ilions \lult it may find; and c. recommend cbanges, 2. The "company" is not obligated to make ins I . surveys. reports or rccoouncnQatlons and any s\lch Dc.ion "com~.~~~ make relate onlY (0 Insurability and lhe premiums char$OQ.. 'T~,'tc~pi!Q)"\ oes not make safety inspections. The "cQmpa oes not 'iif4~nal<'e i:,tp .,,~rfa~ Jrte' dU~Of any person or orgllnlzntion 10 pr ' for ~e:11~J*'qr\~~ty ',oty.rorlOOr5 ~l;:\lil public. And lbe "company" d 001 waml~l~~h8t GptI~tio~:\") ',I .." ...:-:\-... .' --..\ I" \'.'.' . I. ,,\ (,',.',. \ are Sa.Ci!'I:'~~~/~i'-~'~:~"'~ ~(.r,.\tD \ .,~ .:,,'~\(~J \~,{ \ ~""'"". '1" \ 0#1";'::"'.-1 ~!\,).,.....t\"",J """r ......, J..l t. {,. ;:...1.... ~ b comply w dt'J~W5: r~I~\o~~,f#dc;~' ~,Sth-JldaTdS.""""""'- \ Ie... \., ,.'~ \; \\,. \ 'I"~"~ '.'- -, ~.\ hems 1 ane! 2, of thi~ epndltl. OT\~_ap~IY J..onl e "colnpany" but olso to any roning, adVISOry. rale servlcC or.,sil1iiJ.flj\~r .. alion which makes Insurance inspections. SUT\'eys, ropons or reco~~I\Ja{ . . ~.... Jlem 2, of this conditIon does nor apply to any inspections, su.rveys. repons or rOCl)mmendJltions the "compuny" may mil,ke relallve 10 ccniftclltion, under mllc or mUOlclpaJ stfltutes, ordmances or regulmions, oCboiler, pressure vessels or elevators iJ, ), 4 W. Premium8 The: first named Insured shown in the Schedule: 1. IS responsible for the payment of all premiums: and 2. will be ,he payee fOT ilny rC1.uTIl premiums paid by rhe "compaT\Y". peF (Ed. 09/99) /tlC /td""",QGf S"i~ Pftgc ]0 or 39 03/16/2000 1:::08 ~LLIANZE ~ 919547612608 NO. 305 [;lE Allianz Insurance Company x.. All Other Mattcr:t All maneTS not provided tor uTlder !.his Property Coverage Form or any anached endorscmenl(s) shall be governed by the tcrms and conditions oft,he "printed policy forms" attaChed hcreto, Any other lCTmS and conditions of the "printed policy forms" which are 10 conilicr wilh this Property Coverage Form or any endornment(&) now or herea,fler attached arc hereby declared null and void, il being Wldemood and agreed that the COVCTllgo granted by this propert}' Coverage Form OT cndoTSornent(s) tbereto shan govern in the ease of conflict ~")0\\ ....\ r \1 \..\ \ \ ~ ,-"", \ ~!\ \ C", ';, 1 \? ( \\"~'",,' ~\ \\ \,.:.\\;' v ~0)\ ",.-\\\c.\)\ \j \ ,"'~ '11\1I(,~)~, '- .......,. \ \ \' \,~ ..... r,,( '". ., '.' \ " .. \ '.. """ ,- -,' \...., , '";"l~9.J. '" .. '.., \ ('"'.)) "') r,f'''',~.~ ,',I,)} ,'I~)\\I_:;) , '- _" ,', .. .".,' C ~\l., -I " '\ ,\.' ,,\ .~' \t \,..,' .',C . ~r-\-"" -" ,,'. J .. \. t; . ,,' u .--- ~~".''i i-:; "I"t.\ I('\::. ---- tJ'.r, . .. '-" d~ ,,-',', \ ',(: "'\s", \"t~. ,.', \':$. \...' , ,:$",(.1"- ~~ ~.J ___ ---- PCF (Ed. 09J9!J) Ale AdV41lrllg~ Sme~ Page 11 of 39 03/16/2000 1=:08 ALLIANZE 4 919547612608 NO. 305 [;l13 Allianz Insurance Company SECTION 1I1- COVERAGE PARTS Section m is compnscd of the following four Coverage Parts: Covmgc Pan A: Propeny Damage Coverage Pa.n B. Business Imerruplion: Gross Eamings Coverage Pan C IMPORTANT: Ext~Expense ~~~ Ren ue .\ (\ \ "\' ~ .......,\ ~ \ I.~ r-- \\ ) '.:< \.~S' ~ (" \. \' ;'\\ \,.' 'C~ , ',-C" '\ \ \".\ \ '. \ ~.", . 1":\(", \ ~\ .' \ \ (\ \ 1 ' ,t ' ". \ . D)' 'r.\_\~~,,' ~ ~ ,<;:~'~'~",.\'(~: 'Ie' \ 0....., .~ . .....l,'O ," .' ,1..-' C::., . \ \.. '\1.'" f")\; .' "". \ ~.=--' .... .' 1-.. .' ,'- ' ." l..... ,., ...... \ \ ~ ~ r-" , t-I' (.. \ <;.\ ('\.) i ",.J ","' . , v ~.~ J>.. '- ,.' c';> . C\ 'C'r"" r .' \ ... " t. '. J , '... "...... \\.. Coverage is provide ~4Uler 'tlJ18 "p~ticf\ only I cordancc with the Coverage Parts chat i" Illccified under 'Tern ~\~ 8e~~~~1,\~T-t!e,1;~ e of this "policy" III Insured. \. .1,1\'.'-" ~ No covcrllge ill provided ~mlcr..JbIs4policy" for Any Coverage Part rhai is .pctificd under irem E. of Section I. The Sthcdulc of lb1S "poli,y" M Not lnmred, Coverage PlU1 D: PCF (Ed. 09/99) Ale AdVlln,agt' Seriei PlIgc 12 of 39 03/1(:,/2000 15:08 ALLIANZE ~ 919547612608 NO.305 [;)14 Allianz Insurance Company COVERAGE PART A: PROPERTY DAMAGE 1. Insuring Agreemem This "polley". subject \.0 the lerm.s, exclusions, limits and concliuolli contained herein or cndon;ed hereon, insures against risks of direct phyeicnllos8 of or direct physical damage to In&urecl Prcpeny as described below, provided such lOBS or d.Ilmage occurs during the "polley period". 2. Insured Property Except as hereinafter excluQeQ, Insured Property compri~ll property as d~scribed below while such propertY is siwated al "scheduled locations" or on land within 1,000 feet thereof. Coverasc IS provided for Real Property only if an "X" is UJscned in the box preceding lile words Real Property uncler item E. of Section J . The Schedule of this "policy", Coverage is provided for Personal Propeny only if 8Jl ..X" is inserted in the bO)c preceding the words Personal Property unclor i~em E. of Section 1 . The Schedule of th\6 "pol~" (2) additions andlor A, (1) b (1) personal propeny owned by the Insured; (2) personal property of others thaI is in the care, custody or control of lhe Insured and for which Ihe Insured is liable in (he evenl of loss or damilge, (3) personal property (other than motor vehicles) of officers and employees of the lDsured; llnd (4) the Insured's use in1.erest liS tenant in "impro\lemems nnd bettennems" (0 building(s) andJor lilruCl.urO(S) per (Ed. 09/99) Ale A.dvamullr Selles Page 13 of 39 03/16/2000 1:::08 RLLl A~~ZE -+ 919547612608 NO. 305 {;liS Allianz Insurance Company 3. Prapeny NOT Covered 4. Exclulionll Insured PropertY does not include any of the followmg: a. "money", "securities", "vDlunble papers and records", precious ling semiprecious metals and etoncs, jewelry, furs and objects affine an: b. animals, IMd or land value., air. lAwnS. standing timber. plallls. crees or shrubs ('''''PI when held for sale or used fOT decorative purposes inside tluildmgs) and growing or drying crops; c. water, except water which is nonnaJly CQnlained within any lype of tank, piping system or other process equipmem; a, aircraft. watercraJl, railroad rolling stock, satolUres. spacecTDft, launch vehiclcs and launch sites. motor vchicIC$, motorcycles, mOlar &Cooters, and other sclf-propelled machines that are licensed for use on publiC rOAds or are operated principally away [T Tnsured's premises; propeny while in lransil: ~ 0~ r ~C\~'\., " propeny in the course ofmc:tion ~i~g 'quleTi!~n' .',_ hinen', wols. materials or supplies intended !i m ~~~~~\f1(,~UGh ~~nY."tlt tlf s exclusion s1la11 not apply t.o repairs or r vlltiQn~ tQl~~Uil~ii.\.l!aCil( res flt~I',~l'Iea'ul locations"; @ \) ~'\j '., ~ . , "',' \. \ .~ " ~., ( , .1'.' - ", I.. , underground rni. 'b:Ve.mj"i~f~and anY~~ClfJ"t.~co~~'ri~.~be;:lIn~\ " \ \ . ,." \ ' , ~.~~. .' \ \ , ('\J I \. ~' I' .' {' ; :~, . ( \\:':' ~ ..- ... bridges, ro!l(]ways, lams~ dike!. ~p]ks.. i~t!jOS'll~.lQd\~t paved s; \\\') \.l.. ~;' ,.1' ,'t,\. offsbore prop<lny. C~i'r~l'~ctlit~~~d Ih' ontcn18 extending from land or sbore, and floating. docKs perm~~~'~~ 'to 5, river banks or shore shall not be considered offsh.ore, \ p..' overhead t.ransmiEsion and distribution lines. including wire. cables, poles, pylons, S18ndards, lowers or other supponing muC'lurcs whic;h may be attendant to the transmission andlor disuibution of electrical power andlor telephone communicauons, but this exclusion shalJ not apply 10 such propertY whlch is located on the Tnsured's premisos or wiLhin one thousand (1,000) feel 111 e reaf; c. f s; h I. J 1'- properly sold by the InsLlred under condilional sole. tnlsl agreement, installment payment or othc:r deferred paymem plan. or in whic;h the Insured has retained a security in~rest, after delivery to customers, 1I Tim "policy" c10es nOI insure agClinsl IOS8 or dnmagc clIuSed. direcUy or indireclly by any of the following, regnrdless of any other cause or event COnlTiOLlting concurrently or in any sequence to \.he IOS5 or damage: (l) "Flood", but if direct physical loss or dimt physica.l damage by the or e~"plosion results, the ;'company" sholl be liable for Lhm resulting elirec\. physlcalloss or direct physical damage by fire or explclilOlt peF (Ed. 09/99) Ale AdwmtllH. S/t'Tli:S Page \4 ofJ!> 03/16/2000 15:08 peF (Ea. 09/99) ..Jle ,.ttlwmtagc Seri~ ALLIANZE ~ 919547612608 NO. 305 [;l16 AllianI Insurance Company (2) "Water damage", b\u if direct physical loss OT direct pbysical damage by tire or explosion res~Jr5, the "company" shall be liable for that resulting direct physiClllloss or direct. physical damage by fire or explosion. "Eanh movement", but If direct physical JOS8 or direct. physical damage by fire or explosi~n results, the "company" shan be liable for thaI rc5Ulting clirea phy.icalloss or direct pl1ysical damage by tire or explosion. "Volcanic aclion", b~\t if direct physicallos& or direct ptlysical damage by fire results. the "company" shall be liable for that resulting airect physical loss or d1rect pbysic.ll damage by fire. (3) (4) (5) EnforcemeOI of any law, ordinance, reg'Ulation or la~ regulating or restricting lll' construction. i1l&taHa1.ion, repair, replacemcnl, demoliuon, occupancy, operation or othe-r use of property on "covered locations", cxc:ept AS providc:l1 far by extcJUiion S. !" Buildmg Ordinance, of Additional CovcraGc Exte' 10 Coverage Pan A of this "policy" , AnI. 'mals, vormin Of insec' in~iP\a, o;up~.ll\~ but if direct pbysica1losli or direct pb ~ma e~ ~~,!~~e ~l~.~ ~~;j; is "policy" results. the "campa all 't f\ ~ ~\Q\~,I.. _, \jmYma)o" or direct physical damage, ~ \) \.-\ \f\,,\.) \\ \III~~\C\\ ~ Dl\mpness~~)' ~re. '~\~s'o~ ~~,~i~~:;lr!til~~ o~~m rature or changes of temperature bUlJP~feCl p'~jcaf~sk,~di'l'~ct~Oa1\d'amage.n. 1 otherwise excluded by this "pcb "r~s~ll'f; rife >:g~r ~,.nl~ liable foJ:.jD&rfesulling direct physicQl 10s8 or dIrect h~f~ dahl,A.gf""'\ '\ "X, - ~ _," :. .~. R\S~' ~ lntcrl1lption of coini~s:Q1~\ ", I. water, gIIS, &team, refrigerant or other 5elvices when such inte p'ti~ curs awoy from the Insured's premises. but if direct physical 10S6 or direcl physi~al damage not otherwise excluded by this "policy" results, the "company" shall be liable for thal resulting direct physu:al loss or direct physical damage, (6) (7) (8) (9) . Any fraudulent. criminal Qr dishonest acl.(s) or omIssion(s) done by or at the instigation of tl,,' Insured or any Q5socja~e, parmer, employee or agent of the Tnsurea . whether commilled during regular business hours or no~ 800 provided such ll.Cl(S) or Qmission(s) is(t\re) intended to resulc in \,h.e financial gain of any or the aforemention.:l1 panics. (0) Nuclear reaction. nuclear radiation or radioDctive contamilUluon (except as provided (or u.nQcl' extension h'l Radioactive: Contamination, of Additional Coverage Extensions to Coverage Part A of tlus "policy"), 011 whether cQntrolled or uncontrolled; but if direct physical 1066 or ciirccl. physical damage by fire results. the "company" shon be liable for llUlI. resulting direct physicolloss or direct physical damage by fire. (11 ) HoSl.ile or warlike action in lime of peace or war, including actiot'l in hindering. combatmg or deftmding agflinsl an Bema!. impending or expectcd attack' (A) by a.ny government or sovereign power (de jure or de facto). or by any au.thority maintaining or using milltary. naval or alT forces: or (b) by milililTY, naval or air forces; or '~gc IS of 39 03/16/2000 15:08 ALLIANZE ~ 919547612608 NO.305 (;)17 Allianz Insurance Company (c) by an agent of any such govemmenl, power, authority or forces (12) lnsunection, rebellion. 'revolution, civil war, usurped power, or aeDon taken by govornmenull ll\l.thority in hindering, combatins or defending against such an occurrence (1 )) Confiscation, nationllli7.ation, commandeenng, requisition or destruction of or damage to property by order 01' tho government (de Jure or de facto) or any public. municipal or local authority of the country or area in wltich the propertY is situated b, This policy does not insure against 10s6 or clamago cawed by or resulting from any of the following: PCF (Ed. 09/99) .4/e Ad\JanIQIle Series ( 1) Indirect or remote loss OJ d.amage, delay or loss of market, or interruptlon of business unJess otherwise provi4ed hereon, The COllt of correcting or making " (~0\' (J\) , ~~ ~\~r~~~o\.)1lI:~' ig.; or (b) in m or ~..{.;f~>\\ ',<\Y\ \".- ' ..' (. \' \ \" (_:'\"Y _\ \ \ \) ,t!' " l~_~ ~~~~~~~~?~~~~ ~:~;t'p~,o~~~. ~~ ~"onage disclosed by audit oru l\g-.!~nlol!,- \:~,r', ,:~,,) \.~\.,' , " \:\) ,\ I', (, \, ...L.\ \"~) I _ J', ~ \_ ,IF Accumu 1bd offects ,of ~g,. ~o~e, ~~bT, liq\ll .(., 'l~':.. ~,'.J\',."., '\.::'- (8) ;'~n~ tei,; f1e~~tio rot; ~r,' .,....\:J- " s,,/,.,..t (b) settlin~, f"- Ing. shrinkage, bulging or expansion of pavements, foundations, walls, floors. roof6 or ccilil1gs; or (2) (3) (4) (5) (c) shrinkage, evaporation, IctlkIlgc of contents, change m flavor or texture or finish, decElY OJ ot.her spcilllgc:: but if direcl physical los6 or direct. physical damllge not oUlerwise cx:c:luded by t11is "policy" results. the "company" shall be lillble for tbilt direct physical loss or direcl physical damage, (6) lollS or da.mage to dock~. piers, whsJVes or other propeTl)' located thereon when caused by action ofw81er or ice or impact. of watercraft. (7) Loss or damage lO lhe Insured's product when caused by elTors in design, poor workma,nsh.lp, or use of faulty materials, In the developmem, processmg, lesting or llUlo\Jfai:lurc: of lhe [nsnred's product. (8) Loss or dDmage to Slock 01' malerials when c:lusecl by manufacturing or processing operations which resu.lt in damage to Buell pTtlpeJ1Y while being processed, monufocturecl. leSled or otherwise being worked upon. Pace Hi of 39 03/16/20mJ 15:08 ALLIANZE ~ 919547612608 NO.305 [;118 Allianz Insurance Company (9) Los6 or damAge to media rflCOTds for or programming records penaining 10 electronic and electromechanical data processing or elemonicaJJy com rolled equipmcnl, including the data U1ereon. when cOllSed by error or omission in machine programming or inwuctions to machine (10) Lo~s or damage alused by an)' IIct, error or omission (whether by the Insured or others) in (8) planning, zoning, surveying, siting or developing propcny, or (b) establishing or onforcinG building codes or standards for construction or matcrials~ or (c) designing. eSTablishing O\e specifications. furnishing work. materials. pans or equipmem.. or consuucting or mainusintng lbe iollowing P(l)pcrlY or €acilitics: (11) 0) buildings or strUctures; or (ii) improvements or ch in or ~ltftip TO land or other property: or \~'\\ '\ \ \ (Hi) rciKls. r m~,!p~~,\i~.n~~''d)lche6, levees, dams or other " (\ \ . . \ ,\ '\' \l" ",.\ \ mOl>; ,.' "', \ \ ", 'I" \ \ "~\. '.' . ~ ( C'. \ "'. \ \ \ '.' .' , ' aU w er o~ ~oq . p~tiY."~'r\~btirl~B\;~,' etthef..~~~tt:~"bY lbis "policy", Qr away from t e .~~. ~lo. t.'OllS~.".'~ .. . ';".' ;"'. ,'..,... 0' "-.. \ \,., '., r('O \' ..,' . .,( .) "", \ \ ~.,' \ ,':' ' . i ,," ,,\,\~,.,.. Bxplosio \-.Nir~'..ony of ~~e !ol!o~ ~~~,oI# ownc4 81ed o,r CC1ntrolled by the InS1ll"Cd: .crnro(lll,rs. vtcl~lng r,qulpirtCnt an to and fDrnung a pan thereof; steam turbi~e~.,\iteam\~nSiDC,t ~in pi ccting any of the foregoing; or gas turbines; CXC~, (bat ~bi~~x(;l~~' S ot apply to explosion of 8CC1Jmu)ated gases or \,lJ\coUllumed elwltl\i~1he'fi or the cornb\JSlion chamber of IU\Y fiR:d vessel, other man glIB turbin ',jcr'Wi'" c flue. or pnssages which conduct the gases of combustion tberefrom, Ho , if direct physical 1055 or direcl physical damage by tire or combustion explosion o\.l\.Siae any of the proper1y described in this exc:luSlon results, the "compfmY" shllll be liable for lIuch resulTing direct physical loss or direC1 pbysical damllge, (12) Ruptl1re, bursting, cracking. burning or bulging of any of ~he following propcny owned, operaled or controlled by ~l\e Insured: steam boilers. including equipment attached to a.nC\ forming a pan thereof; !Iteam turbines; steam engines; steam pipes CClMcc:ting any of LIle foregoing; hot waU:r boilers or other equipm.ent (or heating water; prcsSlm: ....essels, including equipment auached to flnd forming El pan thereof; Of gall nnbines, However, if direct physical IOS5 or direct physicQ.! damage by fire or combu~ion e>eplosion outside: any of tbe property described in thill excl~5JoJ'\ results, tbe "company" shall be liable for such resulting direcl physical loss or direct, physical damage, (13) MechnOlcal or machinery breakdown, including rupture or bursting cBused by centrinlsal force. However, if direct physical loss or direct physical damage by tire reslllts. the "company" shall be liable for such reSUlting direct physical loss or direct physiclll damnge, pcr (Ed. 09/99) ."lle I'ldWII/tGC& S,,'&s Page J 7 of 39 03/16/2000 15:08 ALLIANZE 919547612608 NO.305 ~19 Allianz Insurance Company (14) I:lccpical iIijun or distUrbance to elccu-ical appliances. devices, fiXlu~ wiring, or other electrical or electronic equipment. couscd by elcctri~ curren1& artificially generated. However, if direcl phy&icallos& or direct physical damage by fire results, the "company" shall be liable for sLlch resulling direct physical loss or direct phys;c:aJ damage. c. This "policy" dClCS not cover: (I) Loss or damage arising OllL of or in connection with: (a) AsbestoS. dioxin or polychlorinaLed biphenols (hereinAfter referred 10 a5 Materials) r~oval from any strUCtUre, or fixtUre, or item of personal propeny, or product. unless the Materials arc damaged by a peril not otheTWlSC excluded "micr this "policy"; (3) (b) Demolition or increased cost on n, repair, debris removal or lass of 1J&e n~'essitated by the rcc~~~ aw or ordinance regulating such Maranllls; \ .. \ ~,A' ','. \ ./\. '\\" ( ," ~ \. (- " \ '",' \ (I:) Any BO TTle'1~it;gli~:O~\~~q,~~t)jeCl8:rt~c~at such Materlal' present in or of ~i~'Q~ w~amaged WU6i\,of ~ Insured's propeny can no on~~,'rot ~_C\~)pe6e fo{ (~,~ ~'~d5 ~n~n~cd or installed and must iafri(ive~'~T':mbch1i~d, ..\) ,,',1;-". \\j ,~;~'~n~i~~~T'C~'~~;i~;~~~~~rA4"~he Insured OT impose4 on the lnB ~ bl' the olldct' \Qf5t:, g&;;,ernmc~~; "~\llt or other authority, in conntCtiO wi~~ctlJl4 *:~sCiiptiol1 Vlronmental impainncm including seepage or "polluti '\'6t ~:co~~~' any cause whatsoever, \" . .<)\1 '_.,f.\(. '/ t"'~ ,.1 '\\ /' . Loss, dam. age, c'bis~~enses in connection with any kind of descriptio" of seepage and/or "poUuti ~Jor "contamination", direC1 or indirect. arising from any cause whatsoever, (2) Nev.ertheless, if tire is nOL excluded from I.his "policy" and a fire arises 41rectly or indirectly from seepage and/or "polMioo" anellor "contamination". an}' loss or damage illburtd unc1cr lhis "policy" arising direclJy from lhbt fire 6hall (SUbject to the tonns, exclusions, limits and condil.10llS Oflhis "policy") be covered, However, if the ((insured property" is the S\lbject of direct physical loss or direct physical damage for which the "company" hns paid or agreed to pay, then mis "policy" (subJect to its terms, exclusions, limits a.nd condition,) insures ngamsl, direct physical Joss or direct physical damage to Lhe "insured property" caused by resulting seepage and/or "pollution" and/or "conLamination"; provided that nothing ill the foregoing shall be con&1nled to mean I,bal !.his "policy" covers (he costs of decontamination or removal or restoration or replacement of waLer. SOlI. or any other subslam::e on or under ftte premises al IIny "location" covered hereunder. The InslIred 'hall give notice 10 the ;'company" of intent LO claim no laler than rwclvc (12) mOIl1Jls luter Ihe dale of the onginal physical loss or cJamage, PCl" (Ed. 09/99) Ale Ad-..an'Qlt Series Page 18 of 39 03/16/2000 1:::88 ALLIANZE ~ 919547612608 ~~o . 305 [;)20 Allianz Insurance Company S, Additional Coverage InCn8l0ni 10 Coverage Pan A The following provisions extend the coverage provided umier Coverage Pan A, and each is hereafter referred to as an extension, Each extension is subject to oj) terms, exclusIons, limits and conditions, including deductible provisions, of this "policy" unless otherwise sLated, The "company" shaU not be liable under any extension for more t.han the amoum staLed as the Subhmi~ for that extension under iu:m C,2, of Scaion J - The Schcau1e of this "policy", Refer to Condilion D of Sect1Qn U of this "policy" for application of these SubHrnits Nothing conloined within any extension shall operate to increase any amounts or limits of insurance llrovided by this "policy", 8. Newly Acquired Property The Insurance providea under Coverage Pan ^ is extended 10 cover real propeny n~ly conslIUcled, acquired or leased for occupan~ by the Insured at ony "location" within the "policy territory", and personal property while u.nder tbe care, custo or control of me Insured at any such "location". all of wbich the Insured has an ill6UTOb ' ~rest:\ lit the time OflO5S, Coverage undor this extension shall COJ ce WhIl4,,~~ct. first acquires an insurable interest all.be "location" and slulU e nin~~<1'q)\l~yg frc",(~ 'qaIC of such acquisition, or when reponed to B:nd accept tl'\.e...::~-n:ipanyl'/'~ra",lhe,eXpirntion dale of rhis "policy", whichevcTsballoccurti, ./\(1--";\\'.,', ". "" \'.' ", ,,\ No C(lverage is p v1~~1~~~~~5~~~\:~\';;' '. :~', :', . ;: I~' c::.1.~.ll_~I~ \ '"' \' - ' r/' -....... \ \" ~.. ...' :.r I r ," ,.' (l) propeny' ~ ~'iL or wl!ile\~i~~rnle; \ ,~' ' , ' /...' \:./ (.1."-" ,~} , (.\,\1"./ (2) propertY whi o~\IJ~ P~IfI;6C~~~rl1~Y'~lbitiOJl.rcXP~sition, flUr or Lrode show; (3) property in the t;~e.~' Of'f~~~tRJ~(/ '\ ,?'~ (4) propeny ai, aJ\Y "s hf:~~l~ location" OT otherwise insured under lhis "policy", The SUblimit specified under Item C,2, of Section I - The Schedule of [hig "policy" far Newly Acquired Propeny shall apply to [his extension b, Mjscelloneou8 Unnllme(j LoClIllons The insurance providect under Coverage Pa,Tt A is extended 10 cover "insured property" al an}' "locotion" wil,hjn the "policy tem~ory", No coverage is provided under this eXLeDsion for: (J) (2) property while m Lr:msil, or while waterborne; property while on the premIses of any exhibition, exposlIlon, l-air or trade sho\\'; 0) propeny In the course of conSl,nlClion; (4) property al any "scheduled location"; or PCF (Ed, 09/99) Ale AiMuttagc Se,iu Page )9 af 39 03/1c/2000 15:08 ALLIANZE ~ 919547612608 NO.305 ~21 Alllanz Insurance Company (S) property inbured under the Newly AcqUIred PropertY eXlension of this "policy" or otherwise insured under this "policy" OT allY other policy issued by the "company" 10 the Insured The Sublimil specifted under ilem C.2, of Section I . The Schedule of this "po)j~" for Miscellaneous Unnamed Locations shall apply to \his cxt.ension, c, Elhibition, Elpn.itlon. Fair or Trade Show The insurance provicled under Coverage Pan A is eXlellded to cover personal property of Lhc Insured while such property is silWlted ol11.he premises of any exhiblt1on, elq)OSiuon, fair or trade show within the "policy teTT1lQry". No coverage is provided under this eXlension for (l) property while in lransit or wh.ile waterborne; (2) d. propertY at any "scheduled locauon"; properlY i. (be COIl'" of - IDD; ~\';~ ~ropcny t~llt is TWl~~~d'#~~oa.nY oLher policy issued by the compa.n lhe~r~~:\ ') \ \' ,;\ ~ \.. . -,.. r .\.' , \. \.! ,\.., ~' (., \ (,\\ \ j - 'l,l~r)\' \ The. ~~bli" .' e(~)~er-)~m,~c. ' O'r S~~~.~.:L',<:~c(~~UIC of tnlS "policy" for Exlllbluon, ob'.J;;'J\ ~~ r o.T ~ae Show, ~l ~Dply COJl,,\&,extensi~, ~~.\ \" ... J:'J'.\' ~~I..S' ~~\,. ./ ("0 h s' 0 . t--C' Property In th &unc of c~'&'ii:P~11n "\ c.\,-p..v, ,S c. ,;~. '\-r-\:. ~\S ti." t'_.'L\ TIle msu~lInc~ pr , ,,'tul.~(; C~~~, Pa IS e)C(Cnc1~d to cover ?TO?Crty in Lhe c:ou~ of constmcuon, mclu ,~'ip~wt. ry, tools, motena}s or supplies Intended for use In the ~n5tnJ'tion 01 such )?~, which the JnsW'ccl has an insurable interest in the time of los6, ell tiny "loci\tlop'wj , (he "policy territory". (3) (4) As respe~ "locations" other [han "sched\lled locutions". coverage under lhis Propeny in the Cou.ne of ConstrUclion extension shall COlnmence when the Insured fim ac:qUll'C& an iniurablc interest at the "location" ana sball cease ninelY (90) days from 1.he date of such acquisition. or when reponecllo find accepted by the "company", or on the cxpiralion dale of dais "policy", whicheveT sna.lI occur first, No coverage is provided under this PropertY in the COllrse of Cons\.rUction extension for propeny while in IrBnsi\ or while w&\erbol1le, The Sublimil specified under irem C,2 of Section I . The Sc:hedule or this "policy" for Propcny in the Course of ConSLnlC1ion shall apply LO this extension c, Debris R.emoval In the event of a "covered property dAmage 1.056", lh\~ "policy" (subject otherwise lo its terms, conditions Qnd limitatlons including. bnl not limited lo, any applicable deduct.ible) is CXlcnded to cover: PCF (Ed,09/99) .1/e .1fh'lUIfwg, Series PAge 20 of J!) 03/16/2000 15:88 ALLIANZE ~ 919547612608 NO. 305 [;122 Alllanz Insurance Company (1) the necessary ane! reasonable expenses actually incurred by the Inmred due 10 such "covered propeny damage loss" to remove from the "covered locations" debris of "insured propeny" remaining after such 10S8 or damage; and/or (2) the cost of clean liP at r.he "covered localions" made necessary as a result of such "covered property damage loss", bur. 1hi6 extension goes not. cover any of the following (3) the costs of decontamination or removal 01 rosloration or replacement of waler, soil or any other substance on or under SLlch premises; t:he com of removal of any foundation, other thlln damaged portions which mUSI be removed for repair or rebuilding of any building oT_structure covered under Ulis "policy"; or \.he costs of removal of any proper! an th~~~' \, al of whtch is required by me enforcement of flny la mon I OIUlf., r'\l!e ulaLing or restricting \.he construction, instal . rCPllf' I ~~ \ ~lQlll..Q,,''clG'c ncy, operation or other use of sucl1 11)', \? \ ,\-, '\ " \\\ \ \ \ ..' J - "\ ~\\ \"\, \ \",\ \. \1" ",;-:\J,\\.. . It tS a condition p c d{f!~t \~eri'. ~der r.hfs Deb~~~lIl'~~~~~ that the "company" shall have paid O! a ~lr ,X for\dirccl pht:~~~llt~~~1j'ai~p,'pIiYS1CaJ dm;nage to the "insured property" unless SI)C ~~on\- is ~re~~~,dea.~iol~liby '~tf.-~mtion of ,~ductible hereunder, and that the Insured, al\ lJl~e ~tl68,\Q:-!~,~C}>m,any of mtenj.J~all'n for cost of rcnlQvaJ of debris aT COS1 of clean '\Ml~te~J3lari ~JvN12) mon . the dale of such 4irect physic:aJ 108S or direct physical d e.~:":I' ,i' :."J, I.., R\S't-. "r.:.,~, r.n~\c. . The "company" sha.1l not ~ lia~~ er this extension for more tlu~n twenly-five percent (25%) of the amoum of the propen('damage 10s5 olherwise payable for anyone "occurrence" uncler Coverag~ Part A of this "policy" for direct phYSIca.l loss or direct physical damage al the "Ioc.lltlon" where S\lch loss OT c:lllmagc occurli; provided thai nothing conta.iLlcd herein shall opl:rate 10 increase any amounts or limits of insurance provided by this "policy". including the Policy Limit specified under item C,l. of Soetion r - The Schedu.le (4) (5) f. BuihUng Ordlnl)l'Ice This "pollCY" is extencled to cover the fallowing costs or amounls when Ihere is direct physical loss or direct physical damage as insured against by this "policy" to building(s) or suw:tUre(s) covered by this "policy" and such add.itional costs or amounts arc occa&ioncd by and necessitated by Ole enforce111cOI. of any law 01' ordinance regulaul1S llle construction, installation. repair. replacement. demolitiQo, occupancy, operation or other use of BllCh propertY: (1) Ihe cost of demolishing any undAmagod pOrllon(s) of such buildiug(s) or Slructure(s), (2) the value of such uodAn'Jtlged pOrlicn(s) that have been demolishcc:t. this value being clelenninec1 on Ille same basi~ of \'fllu8l1on thal applies under this "policy" to the damaged portlon(s) of snell bl.lildmg(s) or 6tnlctuTe(s), bul th.i~ value ,hajJ not inc:ludc any incretl/led cost of repair, replacement, eonstnlC1ion or reconstruction due to the enforcement of Any law or ordinance; and PCF (Ed. 09/99) Ale ..1d1'lIIItage S~ies Pllgc 21 of 39 03/1E/2000 15:08 ALLIANZE 919547612608 NO. 305 [;123 AllianI Insurance Company (3) if the basis of recovery under this "policy" for such builcling(s) or suucmre(s} is replacement COSI, the increased cost actually expended (excess of (i) and (ii) above) in rebuildlng or replacing both die dllJNged and undamaged bUl demolished portiOn(6) on Ute same aito where the loss or damage occurred, wit\1 like height. floor area and style fOT like occupancy to comply with the minimum requirements of mch law or ordinance, and whic\) would not have been incurred in the absence of such law or ordinance, This eXI.en&ion shaU nOl cover any cost(S) occasioned by l.hc enforcement of any law or ordinance regulating any fonn of "comamination" or "]JOllution", nor shall anything contained within this extension operaLe to override the provisioo5 of Exch.liicln 4. c of Coverage Pan A - Property Damage of this "pphcy", Tbe Sublimil specified under item C,2, of SectiOll r - The Schedule of this "policy" for Building Ordinance sholl apply to thl& extension II- Pollutaot Clean Up and Renwval This "policy" is extendod to cover 111e necessary and re Insured to clean up IUld remove "pollutants" from discharge. aispcrs31. seepage. migration, rele or results from a "covered propcCl)' damage 1 tha e oxpenses actually incurred by tbe r at "scheduled locations" if the h "pollULaUli" is caused by or unQ~ "policy period". ~ (')., V This coverage doe5 not apply \.0 S too\. ~~, oJ.46cs~\hc istcnce. concentration or effects of "pallutallts", oth an ~ '~)\Peit'o~. ~~~.~urse of extracting the "pollutants" from land ftte~ /..'" \\) ,~\~,.~.f{' ()\ \ ~~\. ~ ',) (,...... c,'.' C:l Tbe "company" sha~ Jla\~ badp~i5~~~~;~~Ch -;se& Me reponed to the "company" in w . '. (lX (~}1fiontlKt;(~ d\.~~n whic le "covered propertY damage I " '\' .) ~"t I ' "('1' oss occurs, r"..! ) V' O~r:- .'o(>.( L; "-./ ~.. ;J)" "\,\ ,W' Tlle Subhmit specifi nde{\1J.e~~2~ QfS~grJon )0 ScheduJe of this "poJicy" for Pollutant Clcall Up an" Removal au"fPl'l~~~~~ on RadIDll,.ive Contllminatlo~\'~ NotWithsumd.ing Exclu~ions 4, a, (10) and 4. c, of Coverage Part A, this "policy" is extended 10 in~ure against direCt phYSlcal loss of or direct physiclll damase LO "insured propcny" at "scheduled locations" ClYsed by sudden and accidemal rndi08cuve contamin:ltion. including radialion dlUl188e [0 "insured property" resulting U,erelTom, provided: h, (I) such rnc1ioactive contRminlllion arises O~ll of mater",1 Elt ';sct'lcdnled locations" which is commonly knOWlllO be rndjollcUve; (2) such radioactive material is kept at the "scheduled locaHons" for the purposes of the Insured's operations: and (3) al the lime of li~ch loss or damage. there is neither a ml,lear reactor 'IlPllblc of sustaining nllclellr fission in II self-!iI!ppo1liuS chain rencuon, nor nny nrn or used nuclear f\lcl which is imended for or which has been used in a nuclear reactor, al Lhe "sched\lled locauons" 'T'lle Subhrrnt. speCIfied under item C.2 of Section 1 - The Schedule of this "policy" for Radioactive COnlAminotlon sholl apply ro thIS extensioT1. pcr (Ed. 09199) AIC ..1tMurltllt S,';u Page 22 of 39 OY15/2131313 :5:08 ALLIANZE ~ 9195476126138 NO. 3135 [;124 Allianz Insurance Company i. Elpcditinc Elpenaes This "policy" is extended to cover the reasonable additional costs incurred by the InsurcQ COI temporal)' repairs ana tor expediting the repairs of damaged property lbat is the subjca of a "covered propeny damage loss", including oveTUme 811c1 the extra cost of express Of other rapid means of uansponation The SubJimit specified under ilem C,2, of Section I - The Schedule of thIS ~policy" for Expediting Expense' shall apply to this extension, j. Defense COlil8 This "policy" ili extC11dcd \.0 cover, ClI, the opti ~- pany". the: cost to defend any suit agllln.Sl Lhe lns~lred alleging direct physi OS8 ~' ical damllge as insured against by t.his Hpobcy" to personQ.] property othe~ wh~ctf...i~ it!. t~ stod}' oC me Insured while at "covered locations" to tbo e f ~ ~~ ~'Qb\!~tY-.thFTefol'" even if such ruil is groundless. false or fraudulent. The" mpap~,~~0\ttPf~>>dt2e m~~ ~ch invcsngatian. negotiation or scnlemcnt of a ch c(a~ ~r~ui~~,s ,~c \~'Cojnp8ny~' d~em~' e~p~leTlt. .,..,.-. '. ". .", '\.' \ ... ._' . ."'\ ("'I';' The SUblim'4~. '~~~~m~,ct, i~~ C,2, of ~~~?~J, - T~.~_,~ched~Je 0 this "policy" for Defense COSlS shall a~~ in. tb!~ ~leI\SlOD', ., r,\.' r, i:'.J' e-"\ ,. ~ ".~.., \, \ ,~~. I :~. . .'..~ PrOlcc,ton o(pm~~n)ll ., C' 0- "'~;' ,. O\I~1 In the event of an\rt}~t,or-j~im~~\~Y; pTOpeny damage loss'" this '"policy" is cnencicO to cover the necesS8rYr\and ,r~3b\c'cxpC'l\ee5 incurred by the Insured in recovering and temporarily sll!cguarch~tj:'bj,~propcrt)''', The expenses so incurred shall be borne by the Insured and !.he "company proportionately to \.be eXlellt of their respective interest. The "company's" ponion of such expenses shall be limited to the elCtent such clCpen&es reduce loss or damage whicb would otherwise be recoverable under IJlis "policy". k. Thc SUblimit specitieL'l under item C.2. of Section 1 - The Scl)edule of this "policy" for Protection ofPropeny shall npply To this CX1,cnSlon \. Fin: Depnnmem Service Charge, This "policy" is cxt-,nc1ed to cover the Cire aeportment service charges, as imposed by Jawor assumcd by comrOCl or agreement prior to loss. which are incurred by the Insured due to fire or explosian on or exposJn g allY" covered locati ons" . The Subllmit specified under ilem C,2, of Section I . The Schedule of th15 "policy" fer Fire Department Service Charges shall apply (0 this extension PCl' (Rd. 09/99) Me AlIwInlage ~'e,Jei Page 23 of 39 03/16/2000 15:08 RLLIRNZE 919547612608 NO. 305 (;l25 Allianz Insurance Company 6. Conditione Applicable Only (0 Coverage Port A The following conditlon& apply only LO Coverage Pan A of \.his "policy", including all tJ\;(Cnsions and endorsernent& l1lereto: a. V.luatJon Th.e basis of valuation for loss adjusunent under Uus "poliC)'" shall be determined in aceOTdancc with l.be fol1O)Ving provisions, nnless otherwise statod as 8l)plying und.er any endorsemem(s): (I) "raw stoCk", "mercMndise" and supphes: the replacement COSl~ (2) "st.OCk in process": ll'IC replacement cost of tbe "raw SUlck" used and the actual COSt of labor expend.ecl, plus the proper proportion of overheaQ charges: (3) "finished stock": the ~gul21r cash selling price. leS5 nll discounts and charges 10 whieb su.ch "flnished 8tock" would llave been subjcct h no 109s or damage occumd; (6) (4) (5) (b) if not repaired Or replaced wi!.hin two (2) yesrs a:fter such loss or damage. that proportion of the original cost at time of installation of the lost or damaged "improvemen1,s and. betlermems" which the unexpired {em of Ihe lwe at tbe lime ()f loss bears to !.he period(s) from Ihe date(s) such "improvements ana betterments" were made to the expiration date of the Icase; (C) if re~jTl~d OT r"'PIlIecd at !he oxpense of othors for the use of the Insured. there shall be no liability hereunder: (7) buildings and structures, building equipment, planl eqU1pmclll, mAchmery. machine pnn" office furniture, office eqUlpment, 1001.., dies. Jigs, l.cmpla1.cs. patterns and tla,ks. elCcep1. all &\u:h property that is ob~lele or ijseless \0 [he lnsured: ta) if repaired, rebuilt or replaced. at the same or at another site. wi!.hin two (2) years [Tom the date of loss or damage. the smaller of the following: PCF (Eli. 09/99) 41C .1dYtm'lfge Serit:s Page 24 of 39 03/16/2000 15:88 ALLIANZE 9195~7612608 NO.305 [;126 Allianz Insurance Company (i) me C06l La repair, rebuild or replace on the same site with new materials of like kind and quality. whichever is the smallest; (ii) the Bema] expendlture ITlcurrea by or on behalf of the Insured in repairing. rebuilding ar replacing on the same or another site. whichever is the smallest; but In DO evem to inclu<te any increased CO!it(s) resulting from thc c.n!oJ'CClncnt of any law, ordinallcc. regulation or rule regulating or restricting the construCtion. installation, repair. replAcemenl, demolition, OCC'IIpancy, opcrallon or otber U&C of property on "covered locations"; (b) if not ~aued. rebuilt or replaced, 8t the same or another site, within twO (2) yom from the date of loss or damage; the "actual cash value" at the time and place of10&S; h. (8) all other propeny; the "llCtUaJ cash value" e ti and place ofloss Consequential Loss f{..,\0\'. ' ]0 the event of DV.~~~ Il(.~~\'su~ ."" Dr damage, wilhaul lh' inlCTVtntio, 3llY ~ f ,\~~Ul In a !~q~~n" of events ~Ilt causes physical loas or phy C~~~\lo 1hCf. "rlg;.t rty" ,~J~~lC'1'#~C,"coi,tcrcd loeauon", there shall be liabihty und '~t~" \fMJ~eh 'rC$\1.Iti~. loss, Qr,dA~se"".lbjecl otherwise to (he remlS, e",Jusions. r i d~]4iti 'fi~ hc~~!" '1,\00 \.;\.\:,\~\\l.' / -' Ol..~' ,.(\ \O\;..\i.~c. ..... Brand.and La cl~\s \~,~ (;.5~,1,. \\-\~ (.\ i \~ c~ r.,. f".' " If branded or labc ti. ',~~er(h' ~s,.\~" led stoCk" covered by tJllS "policy" is damaged by a peril msured 1lereundr. ~le' ny" may eJect to take all or any pan of such "merchamlisc" or "finished stock" ~ ue eSlablished by the valuation provlslons in this "policy", If so. the lmured may. III the Insured's own expense. Slamp Salvage on the "merchandise" or "iinishc(! stock" or its containers or may remove or obliterate the brands or labels, provided such Slamp, rernovll-I or oblileration will nol physically damage or ot.herwise rcdutC the value of the "merchandise" or "fj"lshed Block", bUllhc Insured must rclabcllhc "merchandise" or "finished slock" or containers in compliance with the requirements of the law, c. d. Pair, Set or Part. In the evem of loss or ciamage, as insured against under this "policy". to' 1 any aMicle or IlrLJcles which are pArt of a pair or eel, the measure of loss or damage to auch onicle or anicles shaH be a reasonable and fair proponion of lhe ullal value of the }lEUr or sel, givmg consideration ro the ilTlPonancc of said aniclc or aniclcs. bUI m 1\0 evem sha.1I 6uch 10S5 or damage be construed to mean lowlloS.9 of lhe poir or S~ or 2 any pari. of covered properly consi91.mg, when complete for \\6e, of several parts, lbe "company" sluul be liable only for .he value of the pun lost or domaged. PCF (Ed. 09199) ..tiC Ad\lAAI/lgI SerllS PQge 25 of JI,) 03/16/2000 15:08 ALLIANZE ~ 919547612608 NO.305 Gl27 Allianz Insurance Company NA COVERAGE PART B - BUSINESS INTERRUPTION: GROSS EARNINGS 1. In.urlDg Agreement This "policy", subject to the terms, excluslons. limits and conditions conlained herein or endcJrscd hereon, insure' against 10s6 sustoined by the Insured during the "period of rosJOration" resu1ung ciirectly from the neceWU)' int.elTUJ)lion of the Insured" business caused by II "covered property damage loss". 1. In the event of such loss. the "company" el1all be liable far the actual loss sustained by the Insured rtlSulling directly from such inteTTUption of business, but not exceeding tne reductiOll in Gross Earnings dunng the "period ofreslOr81ion".les& charges and expenscs wtlic:1l do not necessarily continue during the "period of restoratlop", Oue ccmsidorntion shall be given to tinuatiop of "nol1l1A)" charges and e>epellses, including payroll expense, to the eXlem neces OffiC e operations of the Insured wah IDe same qualitY of sclVlce which eXlited Unmediat.ely ()~.. ~ ~ '\\ ~\... \'" ilPCDse. Related To Reduein s (---.0\ ~~ \\ \\;:.)\" '~\ ....-"\ \\\~~ \ \ \ \,) I'.~/-\ This "policy", subjcc Ie ~~~~~d(lS; ~iJ Ana C~~l:l~~,co~p:' herein or endorsed hereon, also covers: ~ \) j\ .; ,~'. ,'J .. n ~ '- " c." ;J 'V./ \~ \ '-- v~~\J C7J. -"rj\\-'" 8. sm:b expense II l1} ~!lSarlly.:mCf.lnse~..~ ~;lnkii~d for u.rpose of reducing acroalloss under this Cov .Pan B (e~~U~Pl'\tes~urred t mgui&h 0 fire): and r'~ Co,,}' '\\' - b, such expenses. in xt\;~~'Of .':,~;rti1~(j&.ar ssarily incurred by the Insured in replacina any "finished slock," us~~~~J~lUl t~ uce acnlolloss under this Coverage Pan B: but in no event shall the lOtal bf~ expenses exceed the amount by which the Joss othcTWise payable: under this Coverage Pan B is lhereby reduced, J. DefinitiBn of Gro.. E8.rningll fior the purposes of this Coverage PSl.n 8, the term Gross Earnmgs is defined IUi lhe sum 0[: a tolaJ nct sales value ofproducuon (from manufacturing operations); b, (0[01 net lialcB of "merchl1.ndi5c" (from mercantile operoliona); and c other earnings denved from operations of Ihe business; less the cost of: Q, "raw &l.ock" (rom Wllich such prodllction is dc:ri\'ed~ c, Bupplies cOllsisting of materials consumed dirccLly in lhe conversion of Stich "raw stoc.k" into "finished stock" or in supplymg the servicC(5) sold by the Insured; per (J.d. 09/99 J "UC Advanlu8c S",Ie.s Page 26 of 39 OY16/2000 1:::08 ALLIANZE ~ 919547612608 NO. 305 Gl28 Allianz Insurance Company NA f "merchandll;e" sold, includme packaging mawrials therefor; llnd g servlCC(S) purchased from oulSicJers (n.ot employees of the lnsured) (or resale which do noL continue under contract No olher com shall be deducted m determining Gross Earmngs, ."" '\\ /'~,.' '\ ((>, \ ( . ....<\' ',: .", :."'" /,\l,\..,,"""~' ). ..., ~..._"~ ';, "< .,,~, \ . \ ' \ . \ \, ~~ ~ ( .... <(' (-.' ,,\ ' ( ) , , , ... \ '. \.... ' ,.' , ,/'\ \','. ,,' .:'_J " .' ' ( .,."'" ",., {17' ,'" ,\.;'J\ " . .. c" I'..' L'~ (-.-< ",' ." " ,\,:: '," ':'<'!S~ \ '-:. ': ';.' . ,,,l,r , . -.,'. .. ." ( " C ......_, ,,\ ,.", ',x' '\/"~' i Co'. .. ,~" ,,\\' '-'- \-" '/' ~~ \ '.' . " l", '~* ,\"', ',' "..' , (.. ," ,,' ('or''; \, r/\~~v" , . \\'- \. PCF (Ed, 09/99) ,41C AdllUltllge S~,ies Page 27 of 39 03/16/2000 15:08 RLLIANZE 919547612608 NO. 305 [;129 Allian! Insurance Company ~A COVERAGE PART C - EXTRA EXPENSE 1. Inl1ll1ng Agreement Tl\is "policy". subject to t.he term~, exclusions, limits and conditions conUlined herein or endorsed hereon, covers the ncces&aJ)' EXtra Expense Incurred by the lnsure:c:l d\l.fing the "peri04 of restOration" in oreier to continue Q$ nearly as practicable: tbe "norma'" operations of the ll\6Ured's business following a "covered propcny ci6masc loas", 1. SutlUmit The "com'PflllY" shall not bo liable wuter this Coverage Pan C . Extra Expense for more than the amounl spcci.fi~ under item C.2. of Section 1 -l1\e Schedule of this "policy" as the Sublimit for Exua Expense This Subliml1 shall apply to alllos& arising out of one "occurrence" , J. IW'er 10 Conditio" 0 of Section II of this "policy" for a Definition of Eura Esponee ~~~ \~\~~ For the purposes of. Q COVi~~'~ \ \\~~\E E~ -en~ ,~~t4~n as the execs.s (if any) of the ICllal ~st inCtlrred d ri "Peti~\Cf ~~a .l,dWg~~I>,to'ffie,oper~ 'on of the Insured', business. over and above tile , Arwd\~_jldrmaUY ~ ~~en, in~~~. tQ~" UCl the bUSiness during the same pen"" had no 1 s~td~gge occu~;; ~t1r sal~tf'v~.\le.'O~'propett):.. btamed for temporary use during the ''pcria4 ofro tOr3Uon", whtgb\l~'U~J(ls '~r\\:be%turnpUQ,n..of-nOnnaJ operauon. sllall be lakcn int.o consideralion in l.he qj~~~g\e~ti~f al\.~}~SS,b6rejn4eT, -.-" .r.\ . ,-" ,I ~ \ i .'. ~\~"" ./~ . I' ,,(\\-,c. ' ...... Additional Exc:luaioPI Whi~h ~pp~~overage Pali ,.,' .- 4. The "company" shllJl not be liable under thIs Coverage Part C . Extra Expcn..e f.or: a loss of income; b Ihe COSl of repairing or replacing any rea) or personal propeny, or t.be cost ot research or other expense necessary to replace or restore books of account. abstractS, drawings, card index syS1ems or other records (inCluding film. ta~e. d,l&c. drom, cell llnd other magnetic recOrding or storage media for cleclTonlc data processing) that have been 10&1 or dama~ed by peril(s) insured agains1 by tt\is ';policy". except COSl in excess of the norlnflJ cOSt of such repair. replacement or restoratlon necessarily lntUITed for lhepurpose of reQu~ing loss under this "policy", In no event ,hall such excess cost exceed the amount b}' which Iho IDllll Extrll Expense 10&5 otherwise payable undCT 1-bis ;'pohcy" is hereby reduced; OT C llny other consequential or remote loss; or d :my expemes covered nnder other Coverllge Parts or endor,emenrs (0 [his "policy" PCF (Ed. 09199) Ale ..lJ4wlnr'G" Scr;.es Page 18 of 39 03/16/2000 1:::08 RLLl A~~ZE -+ 919547612608 ~m . 305 [;130 Allianz Insurance Company (v'A COVERAGEPARTD.RENTALVALUE 1. Insuring Agreement nus "pelky". subject to the terms. exclusions, limits and conditions conwned herein or endorsed hereon, insures against loss of RenU1l Value resulting directly from necessary I1nlenabilitY cau&ed by a "covered propeny damage loss", 2. In the cyenl of such IOS6, !.he "company" shall be liable [or the acmall suslained by lbe lnsuml of lhe J\enllll Value of such portiones) of the lost or damaged buil4i or 8t c~ure(s) as arc lUltcnable, less charges and CxpenSClEi whIch do not necessarily cantin I~~~~ W'llcnabiliry, The "company" shall only be liable for such loss Incurred duri 'penop ~~~:~ll.iO . ~r\~~ ~ \~~~;~\~ Dcfinitioll of Rental V ue r':"'\\ 0?~\ \ (-\'. \\ \ \1 \ .~ \. I' ()\ \ ~.\ \"!~. oj \j IV - ,. '.t, (\- \ ' \..s~~ -'I" -," " For the purposes of this '!O-~~, ~tenn'''~~~~NRkle'.' is *fi~d ~\Il1~ sum of: (\,) ) \,J r.:\ f:'1' J N,uL,_,\:.~\o:-/\ C . f1, the LOlal anticipal, l)ros& re~~~.~fro~,~~~~'~pancy~t)re "covered locations" as funushed and eqUJ ~\~"O~ 'Jp8uted;,:an~ It C '( \" ( i" b the amount of all cl ~~~~,~,)'~~~\@ri\~' otherwise be obhStltio", qt. me '!na~llnd \ --- ~- . c ule fair Tenlal value of any portion of said properlY Wlllc1~ ie; occupied by the Insured, PCF (Ed, 09/99) Ale /1 dllfllll4ge Se(';e.f Plil[e 29 of 39 03/15/2000 15:08 ALLIANZE 919547512508 NO.305 Gl31 Allianz Insurance Company NA E. Additional Coverage ExtensioDs to Coverage Parts B, C and D The follQwing provisions clCt~nd the coverage provided under CoverQge Parts B, C and 0 (bUI only those Covemsc Parts WII are insured under this '''policy''), and eaeh is hereafter referred to as an extension Each exleosien is subjecllo all tenna, excluGions, Jimiu ane conditions, Including deductible prOvi&10"S, of this "policy" unless ot.l1erwise SUIted, NOlhing contained within any extension shaJJ operate to increase any amounlS or Jimiti of insurance provided by th.i& "pollcy". 1. }loynlties Th~s "policy" lS clC\.ended U) cover the nttualloss susUlined by the Insured of royalties. licensing fees. teChnical fees, commissions or dividenm thaI would have been earned Wlder any rOYalty. licensing fee, commlS91on or c:bvi"end agreement be the Insured and any other entity, which Qre not realizable as a direct result of direct p~y' ,10. sS\..~ or. 'hrect physical damage to property of such olher entity occumng dlmng lhe .. JS)~\ \Vlded tllBt: o such loss or damage ts _~~ \~\pehl\~i.l~.... vered under Coverage Pan A . Proper~ Damage lis "RAi.i'cy'r \\ \\ \.. \.. '\,v , \ . ~"'I, \ ~. \' '\ .' , \ b, the los d~~f~ ~T~~~~'~:s. 'cit' ~ \ ~', ~JUt..~~~ COY~;M under CaveT3ge Pan A - Pt ny ~aga;~$i' "ppli'cy~~: and 'i (r', ~ ' ~:',':J \, -\ c s~~~c~~,~~.:-j~~a~:~;~Urf~~}:;~i~:~~l~~'~' //~.. "- 'I . '.' (w' ',' /" ",:.:.. ,'..J _, <_ '..\ ' 0'" '\, ( ....r ,. The JJlsurcd sh~)nftuen~~, t.d1h.c'CXl,c,qt'~liSiblc Pliny with wllom the agreement described above has been ~Q~\;.(O .'us~~a.I1YI:O. l~.~_m!lf ' cry, supplies or "IOCQuons" in order to resume business so Il.8 1Q r~e t~,'pmQ~I~)as& hereunder ond the Insured shall coop~ra[c with thaI pany in every way t~.e1fec(,\hjli;~u~'fiOt financially unless such c).-pendirures shall be authorized in advance by the "comp1JRy" / ,,,' ........ The "company" shall not be hable uncler this extension fOT more than the amount specifie4 as lhe Sublimil for Royalties llnder item C.2. of Section J . The Schedule of this "policy", This Sublimit shall.APplY to all loss arismg out of one "occurrence": lWerro Cond.ition D of Section n Oflhis "policy" [or npp1ication of 1Jlis Su.blimit, Z. Lcaaehold Tnlcrclt It, This "policy" is extended to cover the actual Nel Leasehold Imerest loss sustained by \lIe Insured due to the cancellauon of the Insured's leose by the lessor in llCtOrdancc wi1l1 the fire clause or similllr condition within the lease or by sUlrnlory requirements in tbe absence of such II fire clause or similar condition in the lense Such cancellation must result directly frem direcl physico.! loss of or dilCCI physical damase to "insured propeny" leased by the Insured, pIovidecl such 1055 or damilge OCC\lr& during the "polic)' period" and is caused by II peril covered under Coverage Pnn: A Oflhi& "policy", b For the purposes of this extension, the lerm Net Leasehold ImereSl. shall be mean the sum of the following, aU 10 be calC\.l.laled ullhe lime of the loss: PCF (Ed. (9199) Ale A dPculrage Se,io.r PllgC 30 of 39 03/15/2000 1:::08 ALL I ANZE 919547612608 NO.305 [;132 Allianzlnsurance Company fJt1 (1) liS respec;tsExccss Rem Payable, the amount required. when placed at the prime interest Tale in force at the time of loss and compoumled annually. to cover the Excess Rem Payable ror the unexpirecl term ofltle original Jc:asc, (2) 06 rcspccls Bonus Payments, the monthly amount multiplied by the number at months in tho unexpired term of the originallcDSC; (3) as re~ Advanced ReOl, Llle momhly BnlOUm multiplied by the number of months in the unexpired term of the ongipallease; and (4) lhe unamonize<l value of leasehold 1.8nanl "improvements and beuennents". which is flot covered Ilnder any other section of this "policy", c, s wbich may be occasioned by the suspenSIon, lapse or cancellatio any I' Lhe Insured exercising any option to cancel the lease, ~("." . \, \' ' ~~ ' \ ~'\ "',- For the pl1rposes is ext~ ' '~l!O~.~" ~tio'ns a~~ to be used: ~ \ \\.,' \\\,~ ~' "(\',, E~~~~l~~:'1~C\ '.er~nce ,.~~eif%. ~"re~t ,the InS\lred pays at me ti ,.~\~~~';~,e ori~naJ ~e~~d--ther~ t~\l~urcd wlll pay under II e ge\a~ihe \sme Of,~troflU! lV_se~v-"';-. \ \ ,.J ('- ) \.... ,':' "',Q ;".\~t"''''' Bo us -P~Ym.~ntf :~"~1l0~'ed po Q any cash bonus paid by the IJ\su l:'4\tb'acquire OlS-originallea lch is not refundable, tt I;,) ,', ,\.\r:..~_, ^dvanGetlt~~(t~tc. '" orozed ponion of any prepaid rent under the original leAse, Whieh ~c{undable, \....~ . d., (I) (2) (3) e, The "company" shall not be hable u.nder this eXlonsion for more than the amount I>pecified as the Sublimil for Leasehold Interest under item C,2, of Section [ - The Schedule of this "policy", This Sublimit sh8.11 apply to all loss arising out of one "occurrence", Refer 10 Condition D of SectIon II of this "poUc)''' for application d ttli, sublimit J. IncerruptJnn By Civil Authority The tnsunmce prOVided under Coverage Pans e, C and D (but only those Coveri\ge Pans \hat are in6Ured under this "policy") is extended to cover the acnlallolis sustained by the Insured during the length of time, not exceeding founeen (14) consecuuve calendar days, when ac;ccss lo "coverod locOltiotl5" 15 speci.fic:alJy prohibil.ed by order of civil authorit;'. provided sucb order is a direct result of actual loss or damage from a peril covored under Coverage Pan A of this "poli'Y" lo property in the vicinity of tile "covered lo~ation6" to which aCCC5S i5 prohibited, 4. Ingres&lEgre88 The insurance provided under Cov~rage ParIS B, C nnd 0 (b'llt only Ihose Coverage PlUU that AIt insured under thIS "policy") is extended 10 cover Ihe f1CllHllloss &\lSI1I1ned by rhe Insured dl1nng the length of tlme, not exceeding fourteen (14) consecutive calendar days, when ingress 10 or egress from "covered locations" is restricted as a direct resu!t of actllalloli8 or damage from a peril covered under Covernge Palt A of lhllS "polic}" to property in the vicinil)' of the "covered locations" to which ingress to or egress from is re&lriCI,ect, In no event shall this cxtonSlon covcr !lny loss which is otherwise covered under elCtensioll 3, lntermption By Civil Autbori\y, pbovc, PC}" (Ed. 09/99) ,-lIe.1 JIJ4Rtage ,fie,ier PQ!;e 31 of 39 0Y16/2000 15:08 ALLIANZE ~ 919547612608 NO.305 ".... Lr-'-.! Allianz Insurance COmpany s. lmpounded Water }VA In the event thal waJ.eT sllned behind dams or in reservoirs at "covered locations" which is used by the Insured as tl rdW material or fOT power or for other manufaCturing purposes is released from storaac as the resull of direct physiCal loss of or direct pbysical damage to such dam or reservoir or equipmem connected lhcrcwit1l, providea sucb dircct physical lass or direct physiQJ damage resulLS from a peril covered under Coverage Pan A of this "policy". this "policy" is extended 10 cover me actual loss SU8tainccl by the Insurccl r~til1g from lack of winer supply from &\let! sources. The "company" shall not be liable for any 105s sustained beyond thirty ()O) col\S(lcutive days after such lenglb of lime 88 would be rcquirod. with the exercise of due diligonce ftlld dispatch. \.0 repair or replace the lost or gcd dam, resCJVoir or cq\1ipmenl. "'" r ""\',"'\.\ \ r\(; \ ~. \\ "';\ .~, \ \ ,-, I. ,...~ \'.\ \\ \, " \ .,' . (( II r.,., '. ".... I I. \ ". . , '.' \ \ \ \ \ \ ' ' ~ \ '\.\ "'\.\ ' \", . 1'(.\'-" (C? \\ \ .\,)" . . \: ' " \, \ \..-,., , ,( , .' I-~ '-.. \, ..,/ \, ~ " , rr~.) '. I" \ . . -, \",. '.\\ \...,' " r" "" "l..' -. ) . '" I~" I l ) \, '~\ A ) \ ( \, " . I.' \\\.., \-, ", ,.', ....:. ~,t. . -,.' ,.' ., . ".1"\'. \~j .', '1,~.1, I ., '.\, I.... \ ~ 'C.1"" .,' .. , '\ --' ., I: ,', _ C"" II ,..",,-- ~I ",,'. k\'::." _.....,... . ..,c ' _" 1;-..' I'!> /' \ .t.,. .~.'" ~,,.J " ~.......... ..... ," - .' PCF (Ed. 09/99) ..tIC Adwlllr4l~ SR;es Pag~ 32 of 39 03/16/2000 15:08 ALL I ANZE 919547612608 NO. 305 [;134 Allianz Insurance COmpany 10A F. Conditions Applicable Only to Coverage Parts B. C and D The following condltlons and exclusions apply to all Coverage Par\.S B, C and 0 of lIus "policy", mcluding any endorsemoms tnoroU). Theso conditions and exclusions apply in addition 10 Ihe G:neral CondUlone 11& SUlled In Sectlon U of lhis "policy" J. Identity oflntcrcns !fUle Insu.recJ named in tbe Scl1edule is comprised of more than one legal enlily. the "company's" liability under lhis "policy" shall nOl exceed me amount of loss bad all interests comprised a &inale legal enul)', 2. Expcrientc of the Business ~ In dC1.ennining the amount of loss as insured wtmSl~Uil~~\~,considemlion &hall be glven 10 me experience of the business be~J(e"'io~.s,a~'~lJir~p~~e"e~perience thereafter had no lOBS occurred,.~ (',', \' 1 , \ \ (....\ . ....... '. \ , ", \ \', .", \ \' \ \ ,..' \ ,/"'\: r' ,',' ,,". \'...-' ,," ...~'.,.\ ". ",'. \ \' I ..... . ~ ';,'." \ lUsllmptton 01 ~cr~~f\-)' ". ''''\.'' "~\!\'~'f"::' ~ ,', \ In Ill, ~,n( Ill.. P\~~.~Uld "~.". thttk~~~~I(;~ tht intemlplion of busmeas, \ ',. " , . ' \ '. : ,,' ...,." \' ".", ~ a, by complete 0\ p~al resumption, of '~~anof business, whether !It the "localion" sutlering loss or damage or elsewi\ere;-oT b. by makins tlse of ltny.,"raw Slock". "stock ill process", "(inished stock" or "merchandise" at llny "IQCalion" operated by the Jnsured or elsewhere: 3. 6uc.:h roc:1uction shaH be ta.lcen 1n1.0 account in cJetermining the amQ\I.nt of loss recoverable under this "policy" If !.his "policy" provicics coverage under Coverage Pan C . EX\.Ta Expense. the Insured &ball resume "tlonna.!" operation of the business and dispen9c with such Extra Expense as soon as prElctlcnble. 4. Property in file Coune of Construction In the event of dm~ct physical loss of or direcl physica.l damage to real prapcny \11 the course of construclion. as covered under Addiliooal Coverage Extension p, of Coverage Pan A oi t1u, "policy". whicb delaya commencemem of business operAlions of lllc Insured III tbe decred "location". the "complloy" shall onl,- be liable for Stlc}) "time element" loss, liS covered w\der Coverage PartS B. C and 0 of this "policy" and subject lO the applicable S\.\bll1mL lmder t.his ;;PQlicy", sustained by the Insured during the period of lime commencing with tnc dale on whicl1 the Insured's business openmons would have commenced at the aaecled "location" had no sucl) loss OT c1aTlUlge occurred. and ending With the dale Oll whic11 the lost or damaged portion(s) of the PCf (J:d. U9/99) Ale Adv/I"rage Series Pllge JJ of 39 03/15/2000 1=:08 ALLIANZE ~ 919547512508 NO. 305 [;135 Alllanz Insurance Company NA propertY IU the lI1fected "location" could hElve been rebuilt. repaired or replaced with the exercise of due diligence and di&p81Ch The probable level oC business operations or producuon thaI would have been reasonably achieved during this period of time had no loss Of damage occurred shaJJ be t.akcn into consideration in delennining the amount of lQ9& berounder, S, Elei:tronic Media and Record. With respecc Ie loss uJUlcr Covcrage Pans Band/or 0 of this "policy" rcs\l1ting from cii~ physical 10&& of or direct physical "amase to media or programming rccorti pcnaining to electronic or electromechanical data processing or electronically controlled =quipment, including clata thereon, the length of lime for which Ulerc shall be liability heRunder shall not exceed tbc grealer of: 6. a. thiny (30) consecutive calendar days. or th~ time r wi exercise of due diligena: and di.patch \0 reprocluce tIle datil lh om ~C4,tt~ r from originals of we pTevious gCflcra~io". wnichcv . 55; or r .~- ,...\_.1. \ \.. \'-"\ \ ,\ ',,'. \ \. b ~::~, c...r~~~,,~\\~' ~~lli\lb"~.__cdm c~..~\) ), (\. \j \~ \,~ ,t;lr~\"\ ~ \ '- .." "," \ "~" .... 'r)"'" \ '". ~~ \, \ ......'. - ..~r~j.~ \'."(~,,;"'::)"'" "c"':': \ ..~\..) . \ 1 " ',," .. \ \ " . 1\ "Finilhed Stock" En" / - ,,;'; !'01 '.: 1:,01,,,,01";("(.;) . ,~ (":,.. "'; (j.) l'I.."l..\~'-" ,I The "company" &hall no 6CTtQbIC'1inder ~i~i'P01iW"'r~~ any' men'" loss resulting from 10&6 or damage La "fini&hc,d"~k~'~r f:~~~e.'~_~~ 0 reproduce such "finished stock". . r \ '.1" .,.- \ j~ :: - ,_ ....40-- \ .:.... -." ..- Idle Poriods Exclusion 7. The "company" shall not be liable undQr this "policy" fOT any ''time element" 1010& for any period during which businesi would nOt Of coIJld not have been conducted for any reason other \ban direct physicallo&B or direct physical damage as covered \lnder ~his "policy", 8. Leo&e.. Licensel, Contracl aDd Orders )tllclulioo This "policy" docs not cover any increase of loss re&U.lting from the suspension, l~psc or c8nocllauon of any lease. license. contract or order u.nlesB sucll. suspension. lapse or cancellation results di.rectly from the jnlernlp~ion of business. and tllcn the "company" shall be liable for only such loss (os covereci under Coverage Pan.s B. C nnd D of I.his "policy") as affects the Insured's earnings chlnns. and limited 10, the "period of restoTlltlOn" of the lost or damaged property. PCF (Ed. 09/99) Ale Adwurtll8t1 SRies Page 34 of 3D 03/16/2000 15:08 ALLIANZE ~ 919547612608 NO.305 [;136 Allianzlnsurance Company SECTION IV; DEFINITIONS The followlng definitions apply 00 aU pillU of lhis "policy", mcluding any enoorscmenlS attached hereto, but only when such r.orrns appear in quotation marks: A. "Actual Cnsb Valuet' The lcnn "actual cash value" shall mea.n replacement COSl new lelis depreciatiof'L B, "Company" or "Compltny's" The terms "company" or "compIlllY's" shall mean tbe company providing this insurance "policy", as specified on the Common Policy Peclarallons nu,ached hereto. c. "Covered Lotailonn (or "Covered IAca.ion." in tbe plgral) D. The leJl1l "covered location" shall mean any "scheduled lac and ny "location" CO\'crcd W\dcr elCUlnsion A,. Newly Acqulred Property, under th tiO~c;e.y. ,~.,r Extensions Applicable to Coverage Pan A of this "policy", \0f \\ \::~.\:,:~ \ \ "CClvered PropertyD. II" r? (---~,f\\ \ ~\\~J\S<' '" ~~. \\ c.,\l~ \\ ,\\ I.' I'l, ' The rerm "covered propc 16 '\ s~i4\., ,n'.c>>tett phY!l~~AA JOSS'rdt:Or ~rect physical damage to "iImlrcd propeny" al "co e I'" l,ons.t~riing ,~~~ ~~',(~itf~~'\. provided such direct pbYS1Cll] loss of or direct ptt ' _" ge to :~, ill~f"" ,pt~WtY"., i~. ~,,~under ~ove",ge Pan A of this "policy", including allY ena rSC~L8,,~t1aC~ ',~Q::\hi~s 1,~~caIfiending }~~erage llncler Covcmgc Pan A OfUllS "polley". 'i\'" \.', '-\\.:-'i\~.r. .___--- I' r \ . l"J'.' .. ,_.'1,1,- _,r.'<,. ..---- "Earth Movement" ' 'i,' : ',c:\\\c. '~::>----- (>. ,I' ..,-," -- The term "eanh mOVef.\1ent" shan-menD any and all eanh movemeJ'\t, inchtciing but net limilCd to eanhquake. lalldslide, rock slide. mud slide, mud flow, earth rising. eanh sinking, earth collapsing. eonh &hllhng or 51eHhng. subsidence, Qr collapse of sinkholes. E. F. "Fiqishcd STOCK" The teJl1l "finishecJ !llocl<" &hall mean slOck. manufactured by the Insured which in the ordinary course of the In6urclfs business is ready for packing, shipmenl or sale, G, "Flood" The term "flood" ahaH mean tbe rising, overflow1ng or breaking of boundaries of rivers. lakes. mcal1l6, ponds OT similar natural or man.mDde bodies of water ll, "fm(lrovement9 and Bct1crmcnts" The term "improvements and beuennenrs" shall mean fiXTures. lllter&nons, Inlltallations or additions comprising pan ot a puilding occupIed bUl not owned by 1J16 InSIJTed llnd acquired or ll1ade nI the expense or the Insured. which tM Insured cannot legall}' remove. PCl? (Ed. 09/99) Ale AtMuitage .\'uieR Pngc JS of 39 03/16/2000 15:08 ALL I ANZE 919547612608 NO. 305 [;137 Allianz Insurance COllpany L "lnlUred Pnapeny" TIll: tcrm "insured property" shall mean real propcny ami/or pcnonal propeny insured under dLis "policy", liS described under iUlm 2, Insured Property. of Coverage Pa.n A of Wi "policy", J. liJ.,ocation" (or "Locations" In the plural) The Jerm "location" shall mean all property, includins SToups of buildings and structures, at one site which is surrounded by public SD'CCT.S, open waterways OT open lalla. where such streets, walerways or land arc aU at least fifty (SO) fect wide, If bridges or mnnels connect properties at adjolning siles such propcnics shall be considered as one "location" K. "MerchlUldiu" Thc term "merchandise" 5hall melln goods kept f()r sale by the Insured wh.ich are not "raw Slockn. "&totk in process" or "finished stock". L "Money" The tem "money" shaU mean money orders held for &ale to the public, currency. coins, bank noleS, bullion. travelers checks and regi!l1er checks. M. "Nonnal" N. The term "occu ~f S, ~~~otI':'~8ua1 . or series af losses, disamrs or al&lUlltifls ui6l g ,. ~ e , ~;P, ~ ~d, . pJi&\L~SS ~r I lies fr~ ,he pc:~ls of [Om~D, cyclone, hum . ~, ' , no~ ~'~'10 .~~tln1ce. c:ommonon, ma!JClOUS mlschlef, "flood", "earthqll . a\\'~ lcanic:\aC:li'On~ ~~ri1s arc ered under this "policy". one event shaU be construed 10 be Q&tes arismlfa~b:' acbrltinuou rioa of seventy-two (11) hours, When filing proof of 105&, tbe 1 ~\-91. a'Y. Jl.! Je~)~ ~;nent ich such seventy-two (72) hour period shall be deemed 10 haVe co e1\'ffiJ;l wfU,~ ~tJro earlier wan when me first 10S5 to pro))Cny or interesls insured under this "pol ~. ~l~~~r, the "compa.JlY" s1'4111 nOl be liable hereunder for any loss or dam4gc' ~ (~9 '/ \~ ............ \ ,..~ I. occurring before this "policy" becomes effective; or 2. Q.rising from an "occ~lrroncen which is ill progress at the time tbis "policy" becomes eff'cctivc, even jf such loss or dumllge occurs after this "policy" becomes offeclive: or ] occurrmg after the expiration of this "policy", except loss or da~nase arising from an "occurrencc" in progre9s at l.he time this "policy" expires, O. "Pet1oLl or IlcliroratJon" The term "period of restonuion" shall mean the period of lime lhat begins with tbe dS\e of the direcI physico.1 loss of or direc! physical damage to "insured property" covered by this "policy", and ends With tbe dAle when such pan. oflhc: "io6u:rcd pmpcny" 118 has been lost or damaged could. with Lhe exercise of due diligence or dispatch. be rebuilt. repaired or replaced, per (t:d, (19/99) Ale AdPlllltqe SD'ies Poge 36 of 39 03/16/2000 15:08 ALLIANZE ~ 919547612608 NO. 305 ~38 Alllanz Insurance Company This period of \.ime cioe& not include any additional time required for making any change(s) to such property tor any reason cxcepr I\S provided in extension f BUilding Ordinance. of Coverage Pan A of this "policy", nor fOT any additional time required for re.sUlffing or reuainillg employees. nor any additional time: Que to we Insurc4's inllb1hlY 10 resume operations regardless ot the reason, nor any increased time as II rcsull of interference at "covered locationi", by strikers or other persons. with rebuilding, repairing or replacing !he prop:rl,y or wiLh the rcsumption or cominuauon ofbusinesB, The "pcmod of restoration" shall nol be limited by the cxpircltion date of this "poljcy" P. ''Polley" The tenn "policy" shaH mean all partS of the document to which this form is anachcd including, but not Iimlled to, the Oeclarations, the Schedule, condWons. endorsements, "primed policy forms" and llus Property CovertlSc Form Q. ~olicy Period" The tcnn "policy period" &hall mean ~hc Policy Period as Schedule of this "policy", WIder item B. of Section I - The It /)0<0\ "Policy T~rrit:ilry" ~ ~\~\\\;,> \\ The term "policy ~rritory" &hall mean fift.Y1\~~~~tDrli'icd States of America, tlIe OisUiCl of Columbia, the Unilcd Statcli V.r81 an~~~~~iltO\ \ ~\;. ., ~~:\', ./') l \v \\ ./ ..,!' ()' ( "PalluJanu" .........-~\. (."\\\~~ ' <;O,'/I'~ ,. C7"' \ \) ') \ <>') '..' l>~O pO ~:S:'" _ "" ~~ sohct.1lqu~ ~,uj~e.r_1t.ftermaJ jJ=J'ftam or conUlminant, mcluding, "!JP.9f~\&Oo\" f~s.. 'lOici~_. llldllis. ~CflI9, bacteria., fungI, VITUS, mold, ~ncllldeA)A~ats.'to-/r ed, reconditioned or reclaimed. ~ l ~ ~ 1.\,}~, q,.. 0' \S~.' IIPollutlontl "nd/or "CDn&ami n~\ ..\,/' c.\(. ~.~/ . <-,\.I .,c\\ ,/ Y"" ~ / The terms "pollution" ancllor "co\flpi:ffitiou" shall mean the presence: of any material which after i(5 tel~se OT tll6tha.rge can cause or threaten damage to buman health nnd/or hilDWl wclf4rc, or causes Of threatens damage. aeteriorntion, loss of value. marketll.bility ancVor loss of use (0 "jnM'ed property", Including, bUJ not limiled to, bacleTlo. limsl. virus, or hazardous subSWlces as listed in the Fcderal Water Pollutlon Control Act, Clean Air Acl, Resource ConselVolion and Recovery Act of 1976, and/or Toxic Substances Con1rol Act, ar as designated by the US Environmental ?ro\eClion Agency. The Lerm "polhll&lllS" II l but not limited lO, smo spores, vaccines and waste, s. T. u. '.Primed Policy FOnDS" The term "printed polley forms" shall mean the following (onns thal are auached to lhis "policy": ~ne of Form Com.merc:inl Linos Policy Joc;kel Commercial Line, Policy - Common Policy Declarations Commercial Property - Coverage Part Dechualions Standard Fire Policy ProvIsions Reference B1P 190A - A.l,C, (Rev, 6194) JDL. 190A . (0) A.IC (Rev 6/94) IDL - 190A - (J) A.l,C, (Rev, 6/94) SFPP (Ed 09/99) PCF (Jl,d. 09/99) .1JC ,1dwutIIlG~ S~ri~ Page 37 of 39 1213/15/21211210 15:1218 ALLIANZE 91954751261218 NO. 31215 [B9 Alllanz Insurance Company V. "Raw Stt)C:k" TIle term "raw slock" sball mean material in \he STJte in wtlich tile Insured receives it for conversion by the Insured in'-O "stock ~n process" or "finished slock", W. l4S~edIlJcd LcK:&tion" (0" "Scheduled LclClltion." In the plllral) The term "scheduled location" shojI mean a "locauo1\" i'pOCUicd unGer llern F" Scheduled Locations, of Section r . The Schedule of this ;'policy". x. "Seeurhl.," Y. The lerm "sccuritu~s" shall "'eIln all nesotiable and non-negotiable lmtnunenli or conln'lcts representing eilher money or other propertY. and illcludes bu.t is not limited unts, bills. food aamp& or other eviden~ of debt, revenue or other stamps in current lIse. s. D~C IS. evidences of title. and lemr, of credit. but docs not include "money", 0.0 "S.....1a Pr...... ~ \s '0"-_ \, The term "stock ill pr shaJ n. ".ci\ !\a ,,~~;&onc any aglllS. scasomug. litOCk", ~ \ (...\ "I t"\ ~O,-/_ r-'\'-"~ ry \.....-..... .~!>-~v ()\~\-,:~;'\\L;l 'J'<. p.\...... "",0 (.,\~I'_1 , "Time Element" ~ CJS?- c(\ "Oc.~p..~~ \~) ,,\,.'~;\,,- ~\. The lerm "lime element" ~~'11\e~euQi~ ih\errupti rollS Earnings. ElCl1"8 Expense and Rental Value. all as described und.e Opvet~pf.o.~ ~~a ofttlis "policy", '\i:r~.:~ Sf{~(,\~\ "Total Loealion VAlue" r 'l. AA. The lenn "totallocalion value" shall mea.n the sum of: 1. the one hundred pe~nt (100%) value of all real and personal property lnsured under this "policy" at each "location"; such value to be computed at tIle bme of lOllS in 8~cordancc with Con4inon A, Valuation. of Coverage Pan A of this "policy"; 2, one hundred percent (100%) of l.he Insured's Gross Earnings amount (if wwcd under this "policy") for the twelve months immediately preceding Ule lass. for each "location"; roch amount 10 be COmpUled in accordance with Coverage Pan B of th.ts "polley"; plw 3. one hundred percent (100%) of the Insured's RcnlJl Value tlmoum (if insured under Ihis "policy") for the twelve months immediately preceding the loss, for each "JOl:ation"; such amoum to be computed in accordnnce with Coverage Pan D of this "poliCy"; plus 4, one 1nmdred percent (100%) of the /lema) EXLra Expense amount (ifinsllred under [his "policy") incurred by the Insured. for each "location"; such amount to be as defined under Coverage Pan C ofthis "polie}"', PCF (Ed. 09/99) /1/C /1dWIIIIQI" S",iu Page 38 of 39 133/16/2131313 15:138 ALLIANZE ~ 9195476126138 NO. 3135 (;1413 Allianz Insurance Company DB. "V.Juable Plpen and kordstJ The lerm "vah.ablc papers and records" ,hall mean wriuen. printed or otherwise inscribed documenlS and rccord&. including books, maps, films, ape recordin&s. lirawings. 6]XlCification&. abstracts. dcedi. mortpsos and manuscripts, but doc8 not mean "money" or "securia.ics". nor docs il mean media (or or programming records perwnill8 to electronic or electromechanical data PJ'OCC$$Ln& OJ dcc:aroni~lIy controlled equipment, nor any datil thereon. ce. "Voleanlt Aeeion" nD. The tCTlll "volcanic action" shall mea" the eruption, explosion Of effiulion of a volcano. PCl" (Ed. l)9'Y~) .JIIC AflWUlr4lle Se,ieJ PAge 39 of 39