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ARCHINSURANCECOMPANY ENDORSEMENT NO. 44 A~rACHED TO AND FORMING ENDORSEMENT EFFECTIVE AGENCY A PART OF (Standard time) INSURED AND POLICY NUMBER MO DAY YR 12:01 NOON CODE AM KMPKG00383 7/6/2004 X City of Jeffersonville KC001 TH S ENDORSEMENT CHANGES T, HE POLICY. PLEASE READ IT CAREFULLY In consideration for the premium charged it is hereby understood and agreed the following change(s) have been made to the AUTOMOBILE section(s) of this policy: Status Make VIN Ded Ded ~ 1 ADD 1993 International DumpTruck 4686 7 $ 30,000 $ 250 $ 500 PREMIUM DUE: $ ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE AGENT: DATE: ENTRY PERSON 398 Ctark General 7/27/2004 D. Cheek JUL 2 ? 200 DATE AIMUIL0015 3 3003 original ARCHINSURANCECOMPANY / ENDORSEMENT NO. 45 ATTACHED TO AND FORMING ENDORSEMENT EFFECTIVE AGENCY A PART OF (Standard time) INSURED ~ND CODE POLICY NUMBER MO DAY YR 12:01 NOON AM KMPKG00383 7/23/2004 X city of Jeffersonville KC001 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY In consideration for the premium charged it is herebY understood and agreed the following change(s) have been made to the PROPERTY section(s) of this policy: CHANGE FROM 16 $ 20,000 1005 FultonFFrk Park BIdg 1 R 1960 400 CHANGE TO 16 $ 20,000 $ 5,000 1005 FultonFi'rk Park Bldg 1 R 1960 400 CHANGE FROM 16 $ 30,000 Mechanics/Const Crew Bldg 1 R 1960 400 CHANGE TO 16 $ 30,000 $ 15,000 Mechanics/Const Crew Bldg 1 R 1960 400 PREMIUM DUE: $ - WAIVED ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE JUL 2 '7 200 DATE AGENT: DATE: ENTRY PERSON AIMUIL0015 3 2003 398 Clark General 7/27/2004 D. Cheek Original ARCH INsURAN COMPANY ENDORSEMENTNO. 43 A'I~-ACH ED TO AND FORMING ENDORSEMENT EFFECTIVE AGENCY A PART OF (Standard time) INSURED AND CODE POLICY NUMBER MO DAY YR 12:01 NOON AM KMPKG00383 7/1/2004 X City of Jeffersonville KC001 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY In consideration for the premium charged it is hereby understood and agreed the following change(s) have been made to the INLAND MARINE section(s) of this policy Status Year Make Model ADD Gas Pumps with Tanks Above Ground Item Serial # Limit Valuation IM $ 10,000 R $ 500 PREMIUM DUE: $ - WAIVED ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AGENT: 398 Clark General DATE: 7/27/2004 ENTRY PERSON D. Cheek AIMUIL0015 3 2003 Original Policy No. KMPKG0007'I Replacement No. COMMON POLICY - DECLARATIONS NAMED INSURED AND ADDRESS: CITY OF JEFFERSONVILLE 501 EAST COURT AVE. JEFFERSONVILLE IN 47130 AGENT NAME AND ADDRESS: Municipal Insurance Alliance Agency 1700 Opdyke Court Auburn Hills, MI 48326 AGENT NO. KC001 3XZ12057001 POLICY PERIOD: From:05/14/2003 To: 08~06/2003 ~ 12:01 a.m. Standard Time ~your mailing addmss shown above. BUSINESS DESCRIPTION: GOVERNMENTAL SUBDIVISION In return for the payment of the premium, and subject to all the terms of this policy, we agree with you to provide the insurance as stated in this policy. This policy consists of the following coverage parts far which a premium is indicated. This premium may be subject to adjustment. COVERAGE PART PREMIUM Commercial Property Coverage Part $ Commercial General Liability Coverage Part $ Public Officials Liability Coverage Part $ Law Enforcement Liability Coverage Part $ Commercial Inland Marine Coverage Part $ Commercial Crime Coverage Part $ Commercial Auto Coverage Part $ Boiler & Machinery Coverage Part $ Commercial Umbrella Coverage Form $ Included Included Included Included Included included Included Excluded Included TOTAL ANNUAL PREMIUM $ $59,355 FORMS APPLICABLE TO ALL COVERAGE PARTS: Refer to A1MUIL0002 (3-2003) Schedule of Forms and Endorsements THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART DECLARATIONS, COVERAGE PART COVERAGE FORM(S) AND FORMS AND ENDORSEMENTS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY. MAY 1 4 2003 COUNTERSIGNED BY DATE AUTHORIZED REPRESENTATIVE AIMUIL0017 (3-03) Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, insurance Services Office, Inc., 1998 ARCH INSURANCE COMPANY' ENDORSEMENT A NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. KMPKG00071 05 14 2003 X CiTY OF JEFFERSONVILLE KC001 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. In consideration for the premium charged it is hereby understood and agreed the follOwing change (s) are made to the EMPLOYEE BENEFITS section (s) of this policy: EXCLUSION OF CERTIFIED ACTS OF TERRORISM AND OTHER ACTS OF TERRORISM This endorsement modifies insurance provided under the following: EMPLOYEE BENEFITS LIABILITY COVERAGE FORM A. The following exclusion is added: This insurance does not apply to: TERRORISM Any "act, error or omission" arising, directly or indirectly, out of a "certified act of terrorism" or an "other act of terrorism". However, with respect to an "other act of terrorism", this exclusion applies only when one or more of the following are attributed to such act: 1. The total of insured damage to all types of property exceeds $25,000,000. In determining whether the $25,000,000 threshold is exceeded, we will include all insured damage sustained by property of ali persdns and entities affected by the terrorism and business interruption losses sustained by owners or occupants of the damaged property. For the purpose of this provision, insured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the application of any terrorism exclusions; or 2. Fifty or more persons sustain death or serious physical injury. For the purposes of this provision, sedous physical injury means: a. Physical injury that involves a substantial dsk of death; or b. Protracted and obvious physical disfigurement; or c. Protracted loss of or impairment of the function of a bodily member or organ; or 3. The terrorism involves the use, release or escape of nuclear materials, or directly or indirectly results in nuclear reaction or radiation or radioactive contamination; or Page 1 of 2 ARCH INSURANCE COMPANY 4. The terrorism is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or $. Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the terrorism was to release such materials. With respect to this exclusion, Paragraphs 1. and 2. describe the thresholds used to measure the magnitude of an incident of an "other act of terrorism" and the circumstances in which the threshold will apply for the purpose of determining whether this exclusion will apply to that incident. B. The following definitions are added: 1. "Certified act of terrorism" means an act that is certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism pursuant to the federal Terrorism Risk Insurance Act of 2002. The federal Terrorism Risk Insurance Act of 2002 sets forth the following criteria for a "certified act of terrorism": a. The act resulted in aggregate losses in excess of $5 million; and b. The act is a violent act or an act that is dangerous to human life, property or infrastructure and is committed by an individual or individuals acting on behalf of any foreign person or foreign interest, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. 2. "Other act of terrorism" means a violent act or an act that is dangerous to human life, property or infrastructure that is committed by an individual or individuals and that appears to be part of an effort to coerce a civilian population or to influence the policy or affect the conduct of any government by coemion, and the act is not certified as a terrorist act pursuant to the federal Terrorism Risk Insurance Act of 2002. Multiple incidents of an "other act of terrorism" which occur within a seventy-two hour period and appear to be carried out in concert or to have a related purpose or common leadership shall be considered to be one incident. C. In the event of any incident of a "certified act of terrorism" or an "other act of terrorism" that is not subject to this ,/'-" ! exclusion, coverage does not apply to any loss or damage that is otherwise excluded under this Coverage Part. NO PREMIUM ADJUSTMENT DUE: ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE 2003 DATE Agency: Clark General Insurance Date: 7/17/2003 dc AIMUIL0015 3 2003 [-Arch Insurance Group Signature Page YOUR COMPLETE POLICY CONSISTS OF THE POLICY JACKET WITH THE COVERAGE FORMS, DECLARATIONS, AND ENDORSEMENTS, IF ANY. IN WITNESS WHEREOF, Arch Insurance Company has caused this policy to be executed and attested, and, if required by state law, this policy shall not be valid unless countersigned by a duly authorized representative of the company. Constantine Iordanou President Joseph Steven Labell Secretary AIMUIL0011 03 2003 SCHEDULE OF FORMS AND ENDORSEMENTS INDIANA Policy No. KMPKG00071 Effective Date: 05/14/2003 12:01 A.M., Standard Time Named Insured: CITY OF JEFFERSONVILLE Agent No. KC001 Coverage is provided by those forms marked with an asterisk ( * ) ARCH FORMS APPLICABLE TO ONE OR MORE COVERAGE PARTS * AIMUIL00'I7 3-03 Common Policy-Declarations * AIMUIL00'I1 3-03 Signature Page * AIMUIL0002 3-03 Schedule of Forms and Endorsements * AIMUIL0007 3-03 Common Policy Conditions * AIMUIL0008 3-03 Nuclear Energy Liability Exclusion Endorsement (Broad Form) * AIMUIL0009 3-03 Calculation of Premium AIMUIL0004 3-03 Ninety(90) Day Cancellation Clause FORMS AND ENDORSEMENTS ATTACHED TO THE COMMERCIAL PROPERTY COVERAGE PART * AIMUPR0013 3-03 Public Entity and Educational Institution Building and Educational Institutional * AIMUPR0004 AIMUPR0006 AIMUPR0019 AIMUPR0020 AIMUIL0031 IL096'1 AIMUPR0012 * AIMUPR0002 * AIMUPR0003 * AIMUPR0008 * AIMUPR0014 AIMUPR0015 Property Declaration 3-03 Building and Personal Property Coverage Form Public Entity 3-03 Margin Clause 3-03 Deductible Amendatory Endorsement 3-03 Fungus, Wet Rot, DP/Rot and Bacteria Endorsement 3-03 Limited Exclusion Of Acts Of Terrorism (Other Than Certified Acts Of Terrorism); Cap on Losses from Certified Acts of Terrorism; Coverage for Certain Fire Losses - Property 11-02 Exclusion of Certified Acts and Other Acts of Terrorism; Coverage for Certain Fire Losses 3-03 Functional Building Valuation 3-03 Earthquake Coverage Form 3-03 Flood Coverage Form 3-03 Loss Adjustment Endorsement - Commercial Property Coverage 3-03 Coverage Extensions - Increased Limits ( Public Entity ) 3-03 Coverage Extensions - Amended ( Public Entity ) FORMS * AIMUIM0009 * AIMUIM0001 * AIMUIM0015 * AIMUIM0020 AIMUIL0031 AND ENDORSEMENTS ATTACHED TO THE INLAND MARINE COVERAGE PART * IL0961 * AIMUIM0002 * AIMUIM0007 AIMUIM0008 AIMUIM0017 3-03 Contractors Equipment-Declarations 3-03 Contractors Equipment Coverage Form 3-03 Inland Marine Conditions 3-03 Deductible Amendatory Endorsement 3-03 Limited Exclusion Of Acts Of Terrorism (Other Than Certified Acts Of Terrorism); Cap on Losses from Certified Acts of Terrorism; Coverage for Certain Fire Losses - IM 11-02 Exclusion of Certified Acts and Other Acts of Terrorism; Coverage for Certain Fire Losses 3-03 Miscellaneous Articles Coverage Form 3-03 Replacement Cost Coverage - Contractors Equipment 3-03 Fine Arts Coverage Form 3-03 Contractors Equipment Rented From Others Less than 90 days AIMUIL0002 3-03 Date printed: 07/'17/2003 Page 1 of 6 SCHEDULE OF FORMS AND ENDORSEMENTS INDIANA Policy No. KMPKG0007J Effective Date: 05/14/2003 12:01 A.M., Standard Time Named Insured: CITY OF JEFFERSONVILLE Agent No. KCO01 Coverage is provided by those forms marked with an asterisk ( * ) ARCH FORMS AND ENDORSEMENTS ATTACHED TO THE CRIME COVERAGE PART * AIMUCR0002 * AIMUCR0003 AIMUIL0031 * IL096'1 * AIMUCR0004 AIMUCR0007 * AIMUCR0006 * AIMUCR0009 * AIMUCR0008 AIMUCR0001 * AIMUCR0011 CR0007 3-03 Crime Coverage Part Supplemental Declarations 3-03 Crime Genera] Provisions 11-02 Limited Exclusion Of Acts Of Terrorism (Other Than Certified Acts Of Terrorism); Cap on Losses from Certified Acts of Terrorism - Crime 11-02 Exclusion of Certified Acts and Other Acts of Terrorism 3-03 Theft, Disappearance and Destruction Coverage Form (Coverage Form C) 3-03 Public Employee Dishonesty Coverage Form (Coverage Form P-per Employee) 3-03 Public Employee Dishonesty Coverage Form (Coverage Form O-per Loss) 3-03 Add Faithful Performance Off Duty 3-03 Volunteer Workers, Other Than Fund Solicitors, as Employees 3-03 Forgery & Alteration Coverage Form (Coverage Form B) 3-03 Bonded Employee Amendment 10-90 Computer Fraud Coverage Form FORMS AND ENDORSEMENTS ATTACHED TO THE COMMERCIAL GENERAL LIABILITY COVERAGE PART AIMULI0029 i. AIMULI0024 * AIMULIO0~I9 * AIMULI0022 * AIMULI0068 CO2171 CG2175 CG2167 AIMULI0001 AIMULI0034 AIMULI0007 AIMULI0010 AIMULI0023 AIMULI0030 AIMULI0038 AIMULI0043 AIMULI0044 AIMULI0045 AIMULI0046 AIMULI0069 3-03 Public Entity and Educational Institution Supplemental Declarations 3-03 General Liability Coverage Form 3-03 Dam Exclusion 3-03 Fireworks Exclusion 3-03 Amendment of Insuring Agreement - Known Injury or Damage 12-02 Limited Terrorism Exclusion (Other Than Certified Acts Of Terrorism); Cap on Losses from Certified Acts of Terrorism 12-02 Exclusion of Certified Acts of Terrorism and Other Acts of Terrorism - General Liability 4-02 Exclusion - Fungi or Bacteda 3-03 Cemetery Professional Liability 3-03 Deductible Liability Insurance 3-03 Pesticide or Herbicide Applicator Coverage 3-03 Self tnsured Retention Endorsement Loss Adjustment Expense Included in Retention - Unlimited Reporting 3-03 Exclusion - Coverage C. Medical Payments 3-03 Pdor Acts Coverage 3-03 Additional Insured - By Contract, Agreement or Permit 3-03 Additional Insured - Managers or Lessors of Premises 3-03 Additional Insured - Owners or Other Interests From Whom Land Has Been Leased 3-03 Additional Insured - Designated Person or Organization 3-03 Additional insured - Lessor of Leased Equipment 3-03 Pollution Exclusion - Amended AIMUIL0002 3-03 Date printed: 07/~7/2003 Page 2 of 6 SCHEDULE OF FORMS AND ENDORSEMENTS INDIANA Policy No. KMPKG0007'I Effective Date: 05/14/2003 12:01 A.M., Standard Time Named Insured: CITY OF JEFFERSONVILLE Agent No. KC001 Coverage is provided by those forms marked with an asterisk ( * ) ARCH FORMS AND ENDORSEMENTS ATTACHED TO THE EMPLOYEE BENEFIT COVERAGE PART * AIMULI00$7 3-03 Employee Benefits Liability-Declarations * AIMULI0028 3-03 Employee Benefits Liability Coverage Form AIMULI0071 3-03 Limited Terrorism Exclusion (Other Than Certified Acts Of Terrorism); Cap on Losses from Certified Acts of Terrorism - EBL AIMULI0058 3-03 Employee Benefits Liability Coverage Form - Claims Made FORMS AND ENDORSEMENTS * AIMULW0002 * AIMULW0003 * AIMULW0018 AIMULW0023 ATTACHED TO THE LAW ENFORCEMENT COVERAGE PART * AIMULW0021 * AIMULW0022 * AIMUIL0023 ~ ~ AIMULWO011 '* AIMULWO010 AIMULWO015 3-03 Law Enforcement Liability Coverage Part-Supplemental Declarations 3-03 Law Enforcement Liability Policy 3-03 Exclusion - Asbestos 3-03 Limited Terrorism Exclusion (Other Than Certified Acts Of Terrorism); Cap on Losses from Certified Acts of Terrorism - LAW 3-03 War of Terrorism Exclusion 3-03 Fungi or Bacteria Exclusion 3-03 Non-stacking of Limits Endorsement 3-03 Law Enforcement Liability Coverage Form - Prior Acts or Omissions Coverage 3-03 Incidental Professional Liability Endorsement 3-03 Inclusion of Loss Adjustment Expenses in Deductible FORMS AIMUPO0001 AIMUPO0002 AIMUPO0027 AIMUPO0024 AIMUPO0023 AIMUPO0022 AIMUPO0017 AIMUPO00'I 9 AIMUPO0020 AIMUPO0030 AIMUPO0033 AND ENDORSEMENTS ATTACHED TO THE PUBLIC OFFICIALS COVERAGE PART- OCCURRENCE FORM 3-03 Public Officials Liability Coverage Part-Supplemental Declarations 3-03 Public Officials Liability Coverage Form 3-03 Exclusion-Failure to Maintain Insurance 3-03 Exclusion-Financial Loss AIMUPO0031 AIMUPO0032 AIMUIL0023 AIMUPO0014 AIMUPO0025 AIMUPO0028 3-03 Exclusion-Insurance Practices 3-03 Exclusion-Securities/Bonds 3-03 Enhanced Employment Liability Endorsement 3-03 Exclusion-Derivative Investment 3-03 Exclusion - Personal Injury Exclusion Redefined 3-03 Amendatory Endorsement 3-03 Limited Terrorism Exclusion (Other Than Certified Acts Of Terrorism); Cap on Losses from Certified Acts of Terrorism - Public Officials 3-03 War or Terrorism Exclusion 3-03 Exclusion - Fungi or Bacteria 3-03 Non-stacking of Limits Endorsement 3-03 Prior Acts or Omissions Coverage 3-03 Change Endorsement - Insured 3-03 Exclusion - Activities of any Law Enforcement Agency AIMUIL0002 3-03 Date printed: 07/17/2003 Page 3 of 6 SCHEDULE OFFORMSANDENDORSEMENTS INDIANA Policy No. KMPKG00071 Effective Date: 05/14/2003 12:01 A.M., Standard Time Named Insured: CITY OF JEFFERSONVILLE Agent No, KC001 Coverage is provided by those forms marked with an asterisk ( * ) ARCH FORMS AND ENDORSEMENTS ATTACHED TO THE PUBLIC OFFICIALS COVERAGE PART- CLAIMS MADE * AIMUPC0003 * AIMUPC0004 * AIMUPC0032 * AIMUPC0033 * AIMUPC0034 * AIMUPC003$ * AIMUPC0020 * AIMUPC002'I * AIMUPC0023 * AIMUPC0048 AIMUPC00$1 AIMUPC0049 AIMUPC00$0 AIMUPC0044 AIMUPC0022 AIMUPC0040 AIMUIL0023 AIMUPC0007 AIMUPC0031 AIMUPC0041 AIMUPC0024 3-03 Public Officials Liability Coverage Part-Supplemental Declarations 3-03 Public Officials Liability Insurance 3-03 Exclusion - Failure to Maintain Insurance 3-03 Exclusion - Financial Loss 3-03 Exclusion - Insurance Practices 3-03 Exclusion - Securities/Bonds 3-03 Enhanced Employment Liability Endorsement 3-03 Exclusion - Derivative Investment 3-03 Change Endorsement - Exclusion - Personal Injury Redefined 3-03 Amendatory Endorsement 3-03 Limited Terrorism Exclusion (Other Than Certified Acts Of Terrorism); Cap on Losses from Certified Acts of Terrorism - Public Officials 3-03 War or Terrorism Exclusion 3-03 Exclusion - Fungi or Bacteria 3-03 Change Endorsement Exclusion - Contractual Exclusion Redefined 3-03 Reinstatement of Aggregate Limit 3-03 Exclusion - Knowledge of Wrongful Acts - Prior to Policy Period 3-03 Non-stacking of Limits Endorsement 3-03 Change Endorsement Insured 3-03 Extended Reporting Period Endorsement 3-03 Inclusion of Loss Adjustment Expenses in Deductible 3-03 Exclusion - Activities of any Law Enforcement Agency AIMUIL0002 3-03 Date printed: 07/'17/2003 Page 4 of 6 I SCHEDULE OF FORMS AND ENDORSEMENTS INDIANA '~' '~ Policy No. KMPKG00071 Effective Date: 05/14/2003 12:01 A.M., Standard Time Named Insured: CITY OF JEFFERSONVILLE Agent No. KC001 Coverage is provided by those forms marked with an asterisk ( * ) ARCH FORMS AND ENDORSEMENTS ATTACHED TO THE AUTOMOBILE COVERAGE PART- * AIMUCA0028 * AIMUCA0011 * AIMUCA0025 * AIMUCA0004 * AIMUCA0009 CA2358 * AIMUCA0043 * CA2'144 * CA3116 * CA0~'I9 * AIMUCA0022 * AIMUCA0005 * AIMUCA0007 AIMUCA0003 AIMUCA0008 AIMUCA0006 AIMUCA0013 AIMUCA0014 AIMUCA0020 AIMUCA0026 AIMUCA0017 AIMUCA0018 3-03 Business Auto Coverage Form Declarations 3-03 Business Auto Coverage Form Educational Institution - Public Entity 3-03 Employees and Volunteers As Insureds 3-03 Physical Damage to Volunteers or Employees Personal Autos 3-03 Emergency Response Employee's or Volunteer's Personal Effects in Autos 12-02 Limited Terrorism Exclusion (Other Than Certified Acts Of Terrorism); Cap on Losses from Certified Acts of Terrorism - Commercial Auto 3-03 War or Terrorism Exclusion 1-95 Indiana Uninsured Motorists Coverage 1-95 Indiana Underinsured Motorists Coverage 10-01 Indiana Changes 3-03 Deductible Liability Coverage 3-03 Customized Vehicle Extension Endorsement 3-03 Commandeered Auto Coverage 3-03 Agreed Value Endorsement 3-03 Freezing Coverage - Fire and Other Emergency Vehicles 3-03 Impounded Auto Endorsement 3-03 Replacement Cost Insurance 3-03 Garage Keepers Coverage 3-03 Loss Payable Clause 3-03 Additional Insured - Lessor 3-03 Self- Insured Retention Endorsement Loss Adjustment Expense Included in Retention Unlimited Reporting 3-03 Self- Insured Retention Endorsement Loss Adjustment Expense Not Included in Retention Unlimited Reporting FORMS AND ENDORSEMENTS ATTACHED TO THE ELECTRONIC DATA PROCESSING COVERAGE PART * AIMUIM0003 * AIMUIM0004 * AIMUIM0006 * AIMUIM0012 * AIMUIM0013 AIMUlL0031 * IL0961 AIMUIM0005 3-03 Electronic Data Processing Systems Supplemental Declaration 3-03 Electronic Data Processing Systems - Section I - Equipment 3-03 Electronic Data Processing Systems - Extensions of Coverages 3-03 Electronic Data Processing Systems - Section II - Data, Media, Programs 3-03 Electronic Data Processing Systems - Section III - Extra Expense 3-03 Limited Exclusion Of Acts Of Terrorism (Other Than Certified Acts Of Terrorism); Cap on Losses from Certified Acts of Terrorism; - Inland Marine 11-02 Exclusion of Certified Acts and Other Acts of Terrorism - Inland Marine 3-03 Electronic Data Processing Systems - Section IV - Loss of Business Income AIMUIL0002 3-03 Date printed: 07/'17/2003 Page 5 of 6 SCHEDULE OF FORMS AND ENDORSEMENTS INDIANA Policy No. KMPKG00071 Effective Date: 05/14/2003 12:01 A.M., Standard Time Named Insured: CITY OF JEFFERSONVILLE Agent No. KCO01 Coverage is provided by those forms marked with an asterisk ( * ) ARCH FORMS AND ENDORSEMENTS ATTACHED TO THE LIABILITY COVERAGE PART * AIMUUM00'I8 * AIMUUM0086 * AIMUUM00'I7 * AIMUUM0066 * AIMUUM0053 * AIMUUM0003 * AIMUUM00$9 * AIMUUM0027 * AIMUUM0068 * AIMUUM0067 * AIMUUM0047 * AIMUUM0048 * AIMUUM0049 AIMUUM0085 AIMUUM0084 AIMUUM0004 AIMUUM0041 AIMUUM0079 AIMUUM0044 AIMUUM0009 AIMUUM0024 AIMUUM0072 AIMUUM00$2 AIMUUM0015 AIMUEX0002 AIMUUM0008 AIMUUM0062 AIMUUM0034 AIMUUM0036 AIMUUM0021 3-03 Commercial Umbrella Policy - Supplemental Declaration 3-03 Schedule A - Schedule of Underlying Insurance 3-03 Commercial Umbrella Coverage Form 3-03 Public Entity Amendatory Endorsement Definition of Insured 3-03 Lead Contamination Exclusion 3-03 Airport Liability Exclusion 3-03 Non-Owned Aircraft Liability Exclusion 3-03 Dams or Reservoirs Exclusion 3-03 Public Entity Pollution Exception for Partial sewage 3-03 Public Entity Amendatory Endorsement - Additional Exclusions for Partial Sewage 3-03 Indiana Changes - Cancellation and Nonrenewal 3-03 Injury to Volunteer Fireman or Volunteer Policeman Exclusion 3-03 Injury to Volunteers Exclusion 3-03 Limited Terrorism Exclusion (Other Than Certified Acts Of Terrorism); Cap on Losses from Certified Acts of Terrorism - Umbrella 3-03 War or Terrorism Exclusion 3-03 Amendment of Insuring Agreement - Known Injury or Damage 3-03 Fireworks Exclusion 3-03 Stacking of Limits Endorsement 3-03 Exclusion - Fungi or Bacteria 3-03 Auto Liability Following Form 3-03 Contractual Liability Following Form 3-03 Public Officials Errors & Omissions Following Form Endorsement 3-03 Law Enforcement Following Form 3-03 Claims Made Endorsement 3-03 Indiana - Uninsured Motorists / Underinsured Motorists Coverage Rejection Form 3-03 Automobile Liability Exclusion 3-03 Owned Auto Liability Exclusion 3-03 Employee Benefits Plan Exclusion 3-03 Employment - Related Practices Endorsement 3-03 Community Antenna Television or Cable Television Exclusion AIMUIL0002 3-03 Date printed: 07/'17/2003 Page 6 of 6 ARCHINSURANCE COMPANY COMMON POLICY CONDITIONS All Coverage Parts included in this policy are subject to the following conditions. Cancellation '1. The first Named Insured shown in the Declarations may cancel this policy by mailing or delivering to us advance written notice of cancellation. 2. We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least: a. 10 days before the effective date of cancellation if we cancel for nonpayment of premium; or b. 60 days before the effective date of cancellation if we cancel for any other reason. 3, We will mail or deliver our notice to the first Named Insured's last mailing address known to us. 4. Notice of cancellation will state the effective date of cancellation. The policy period will end on that date. 5. If this policy is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata. If the first Named Insured cancels, the refund may be less than pm rata. The cancellation will be effective even if we have not made or offered a refund. 6. If notice is mailed, proof of mailing will be sufficient proof of notice. Changes This policy contains all the agreements between you and us concerning the insurance afforded. The first Named Insured shown in the Declarations is authorized to make changes in the terms of this policy with our consent. This policy's terms can be amended or waived only by endorsement issued by us and made a part of this policy. Examination Of Your Books And Records We may examine and audit your books and records as they relate to this policy at any time during the policy period and up to three years afterward. Inspections And Surveys '1. We have the right to: a. Make inspections and surveys at any time; b. Give you reports on the conditions we find; and c. Recommend changes. 2. We ara not obligated to make any inspections, surveys, reports or recommendations and any such actions we do undertake relate only to insurability and the premiums to be changed. We do not make safety inspections. We do not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. And we do not warrant that conditions: a. Are safe or healthful; or b. Comply with laws, regulations, codes or standards. 3. Paragraphs 1. and 2. of this condition apply not only to us, but also to any rating, advisory, rate service or similar organization which makes insurance inspections, surveys, reports or recommendations. 4. Paragraph 2. of this condition does not apply to any inspections, surveys, reports or recommendations we may make relative to certification, under state or municipal statutes, ordinances or regulations, of boilers, pressure vessels or elevators. Premiums The first Named Declarations: 1. is responsible premiums; and Insured shown in the for the payment of all 2. Will be the payee for any return premiums we pay. Transfer Of Your Rights And Duties Under This Policy Your rights and duties under this policy may not be transferred without our written consent except in the case of death of an individual named insured. If you die, your rights and duties will be transferred to your legal representative but only while acting within the scope of duties as your legal representative. Until your legal representative is appointed, anyone having proper temporary custody of your property will have your rights and duties but only with respect to that property. AIMUIL0007 3 2003 Copyright, Insurance Services office, Inc., 1998 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT (Broad Form) The insurance does not apply: A. Under any Liability Coverage, to "bodily injury" or "property damage": (1) With respect to which an "insured" under the policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters, Nuclear Insurance Association of Canada or any of their successors, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; or (2) Resulting from the "hazardous properties" of "nuclear material" and with respect to which (a) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or (b) the "insured" is, or had this policy not been issued would be, entitled to indemnity from the United States of Amedca, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization. B. Under any Medical Payments coverage, to expenses incurred with respect to "bodily injury" resulting from the "hazardous properties" of "nuclear material" and arising out of the operation of a "nuclear facility" by any person or organization. C. Under any Liability Coverage, to "bodily injury" or "property damage" resulting from the "hazardous properties" of "nuclear material", if: ('1) The "nuclear material" (a) is at any "nuclear facility" owned by, or operated by or on behalf of, an "insured" or (b) has been discharged or dispersed therefrom; (2) The "nuclear material" is contained in "spent fuel" or "waste" at any time possessed, handled, used, processed, stored, transported or disposed of, by or on behalf of an "insured"; or (3) The "bodily injury" or "property damage" arises out of the furnishing by an "insured" of services, materials, parts or equipment in connection with the planning~ construction, maintenance, operation or use of any "nuclear facility", but if such facility is located within the United States of America, its territories or possessions or Canada, this exclusion (3) applies only to "property damage" to such "nuclear facility" and any property thereat. As used in this endorsement: "Hazardous properties" includes radioactive, toxic or explosive properties. "Nuclear material" means "source material", "Special nuclear material" or "by-product material". "Source material", "special nuclear material", and "by-product material" have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof. "Spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a "nuclear reactor". "Waste" means any waste material (a) containing "by-product material" other than the tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its "source material" content, and (b) resulting from the operation by any person or organization of any "nuclear facility" included under the first two paragraphs of the definition of "nuclear facility". "Nuclear facility" means: (a) Any "nuclear reactor"; (b) Any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing "spent fuel", or (3) handling, processing or packaging "waste"; (c) Any equipment or device used for the processing, fabricating or alloying of "special nuclear material" if at any time the total amount of such material in the custody of the AIMUIL0008 3 2003 Page 1 of 2 Copyright, Insurance Services Office, Inc., 1994 ARCH INSURANCE COMPANY "insured" at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235; (d) Any structure, basin, excavation, premises or place prepared or used for the storage or disposal of "waste"; and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations. "Nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self- supporting chain reaction or to contain a critical mass of fissionable material. "Property damage" includes all forms of radioactive contamination of property. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AIMUIL0008 3 2003 AUTHORIZED REPRESENTATIVE Page 2 of 2 Copyright, Insurance Services Office, Inc., 1994 DATE ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CALCULATION OF PREMIUM This endorsement modifies all Coverage Parts included in this policy. The following is added: The premium shown in the Declarations was computed based on rates in effect at the time the policy was issued. On each renewal, continuation, or anniversary of the effective date of this policy, we will compute the premium in accordance with our rates and rules then in effect. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUIL0009 3 2003 Copyright, Insurance Services Office, Inc., 1983 PROPERTY ARCH INSURANCE COMPANY PUBLIC ENTITY AND EDUCATIONAL INSTITUTION BUILDING AND PERSONAL PROPERTY COVERAGE PART SUPPLEMENTAL DECLARATIONS This Supplemental Declarations forms a part of policy number KMPKG00071 DESCRIPTION OF PREMISES PREM. # BLDG. # LOCATION, CONSTRUCTION AND OCCUPANCY ALL ALL Per Schedule On File COVERAGES PROVIDED Insurance at the described premises applies only for coverages for which a Limit of Insurance is shown. PREM. # BLDG. # COVERAGE LIMIT OF COVERED CAUSES INSURANCE OF LOSS ALL ALL Building + $40,523,378 Special Personal Property COINS. 90 OPTIONAL COVERAGES Applicable only when entries are made in the schedule below. PREM. # BLDG. # Blanket Basis Per Schedule On File Replacement Cost Per Schedule On File Per Schedule On File Agreed Value Per Schedule On File ADDITIONAL COVERAGES Applicable only when entries are made in the schedule below. FLOOD LOCATION(S) LIMIT OF INSURANCE DEDUCTIBLE / S.I.R.* Any One Flood Annual Aggregate ALL $500,000 $500,000 $25,000 EARTHQUAKE LOCATION(S) LIMIT OF INSURANCE DEDUCTIBLE / S.i.R.* ALL Any One Earthquake Annual Aggregate $5,000,000 $5,000,000 $25,000 DEDUCTIBLE/SELF-INSURED RETENTION Applicable to coverage other than Flood or Earthquake. $1,000 MORTGAGEHOLDERS PREM. # BLDG. # MORTGAGEHOLDER NAME AND MAILING ADDRESS Per Schedule On File FORMS AND ENDORSEMENTS (other than applicable forms and endorsements shown elsewhere in the policy) Forms and endorsements applying to this Coverage Part and made a part of this Policy at time of issue: See AIMUIL0002 (3 2003) * Self-Insured Retention THIS SUPPLEMENTAL DECLARATIONS AND THE COMMON POLICY DECLARATIONS, TOGETHER WITH THE COMMON POLICY PROVISIONS, COVERAGE FORM(S) AND ENDORSEMENTS COMPLETE THE ABOVE NUMBERED POLICY. AIMUPR0013 (3-2003) ARCH INSURANCE COMPANY BUILDING AND PERSONAL PROPERTY COVERAGE FORM PUBLIC ENTITY Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. ~Threughout this policy, the words "you" and "youff' refer to the Named Insured shown in the Declarations. The words "we," "us" and "ou¢' refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION H -- DEFINITIONS. SECTION A -- COVERAGE We will pay for direct physical loss of or damage to Covered Property at the premises described in the Declarations caused by or resulting from any Covered Cause of Loss. t. Covered Property Covered Property, as used in this Coverage Form, means the type of property described in this section, A.I., and limited in A.2., Property Not Covered, if a Limit of Insurance is shown in the Declarations for that type of property. a. Building, meaning the building or structure described in the Declarations, including: (1) Completed additions; (2) Fixtures, including outdoor fixtures; (3) Permanently installed: (a) Machinery; and (b) Equipment; (4) Personal property owned by you that is used to maintain or service the building or structure or its premises, including: (a) Fire extinguishing equipment; (b) Outdoor furniture; (c) Floor coverings; and (d) Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering; (5) If not covered by other insurance: (a) Additions under construction, alterations and repairs to the building or structure; (b) Materials, equipment, supplies and temporary structures, on or within 1,000 feet of the described premises, used for making additions, alterations or repairs to the building or structure. b. Your Business Personal Property located in or on the building described in the Declarations or in the open (or in a vehicle) within 1,000 feet of the described premises, consisting of the following unless otherwise specified in the Declarations: (1) Furniture and fixtures; (2) Machinery and equipment; (3) "Stock"; (4) All other personal property owned by you and used in your business; ($) Labor, materials or services furnished or arranged by you on personal property of others; (6) Your use interest as tenant in improvements and betterments. Improvements and betterments are fixtures, alterations, installations or additions: (a) Made a part of the building or structure you occupy but do not own; and (b) You acquired or made at your expense but cannot legally remove; (7) Leased personal property for which you have a contractual responsibility to insure, unless otherwise provided for under Personal Property of Others. c. Personal Property of Others that is: (1) In your care, custody or control; and (2) Located in or on the building described in the Declarations or in the open (or in a vehicle) within 1,000 feet of the described premises. However, our payment for loss of or damage to personal property of others will only be for the account of the owner of the property. AIMUPR0004 3 2003 Page 1 of 23 Includes copyrighted matedal of Insurance Services Office, Inc., with its permission, Copyright, Insurance Services Office, Inc., 1994 ARCH INSURANCE COMPANY Property Not Covered Covered Property does not include: a. Accounts, bills, currency, deeds, evidences of debt, money, notes or securities; b. Animals, unless owned by others and boarded by you, or if owned by you, only as "stock" while inside of buildings; c. Automobiles held for sale; d. Bridges, roadways, walks, patios or other paved surfaces, except as provided in the Coverage Extensions; e. Contraband, or property in the course of illegal transportation or trade; f. The cost of excavations, grading, backfilling or filling; g. Foundations of buildings, structures, machinery or boilers if their foundations are below: (l) The lowest basement floor; or (2) The surface of the ground, if there is no basement, except as provided in the Coverage Extensions; h. Land (including land on which the property is located), water, growing crops or lawns; i. personal property while airborne or waterborne; j. Bulkheads, pilings, piers, wharves or docks; k. Property that is covered under another coverage form of this or any other policy in which it is moro specifically described, except for the excess of the amount due (whether you can collect on it or not) from that other insurance; I. Retaining walls that are not part of the building described in the Declarations; m. Underground pipes, flues, drains, tanks, or connections, except as provided in the Coverage Extensions; n. The cost to research, replace or restore the information on valuable papers and records, including those which exist on electronic or magnetic media, except as provided in the Coverage Extensions; o. Vehicles or self-propelled machines (including aircraft or watercraft) that: ('1) Are licensed for use on public roads; or (2) Are operated principally away from the described premises. AIMUPR0004 3 2003 Page 2 of 23 This paragraph does not apply to: (1) Vehicles or self-propelled machines or autos you manufacture, process or warehouse; (2) Vehicles or self-propelled machines, other than autos, you hold for sale; or (3) Rowboats or canoes out of water at the described premises; p. The following property while outside of buildings: (1) Grain, hay, straw or other crops; (2) Fences, radio or television antennas (including satellite dishes) and their lead- in wiring, masts or towers, signs (other than signs attached to buildings), trees, shrubs or plants (other than "stock~ of trees, shrubs or plants), all except as provided in the Coverage Extensions; q. Overhead transmission and distribution lines; r. Dams. Covered Causes of Loss When Special is shown in the Declarations, Covered Causes of Loss means RISKS OF DIRECT PHYSICAL LOSS unless the loss is: a. Excluded in Section C., Exclusions; or b. Limited in Section D., Limitations. Additional Coverage a. Debris Removal (1) We will pay your expense to remove debris of Covered Property caused by or resulting from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the earlier of: (a) The date of direct physical loss or damage; or (b) The end of the policy period. (2) The most we will pay under this Additional Coverage is 25% of: (a) The amount we pay for the direct physical loss of or damage to Covered Property, plus (b) The deductible in this policy applicable to that loss or damage. But this limitation does not apply to any additional debris removal limit provided in the Limits of Insurance section. (3) This Additional Coverage does not apply to costs to: Includes copyrighted material of insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., t 994 ARCHINSURANCECOMPANY (a) Extract ~pollutants" from land or water; or (b) Remove, restore or replace polluted land or water. Preservation of Property If it is necessary to move Covered Property from the described premises to preserve it from loss or damage by a Covered Cause of Loss, we will pay for any direct physical loss or damage to that property: (1) While it is being moved or while temporarily stored at another location; and (2) Only if the loss or damage occurs within 30 days after the property is first moved. Fire Department Service Charge When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay up to $5,000 for your liability for fire department service charges: ('1) Assumed by contract or agreement prior to loss; or (2) Required by local ordinance. No Deductible applies to this Additional Coverage. Pollutant Clean Up and Removal We will pay your expense to extract "pollutants" from land or water at the described premises if the discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused by or results fram a Covered Cause of Loss that occurs dudng the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the earlier of: (1) The date of direct physical loss or damage; or (2) The end of the policy period. This Additional Coverage does not apply to costs to test for, monitor or assess the existence, concentration or effects of "pollutants." But we will pay for testing which is performed in the course of extracting the "pollutants" from the land or water. The most we will pay for each described premises under this Additional Coverage is $10,000 for the sum of all such covered expenses arising out of Covered Causes of Loss occurring dudng each separate 12 month period of this policy. eo Water Damage, Other Liquid, Powder or Molten Material Damage If loss or damage caused by or resulting fram covered water or other liquid, powder or molten material occurs, we will also pay the cost to tear out and replace any part of the building or structure to repair damage to the system or appliance from which the water or other substance escapes. Collapse The term Covered Cause of Loss includes the Additional Coverage -- Collapse as described and limited below. (1) We will pay for direct physical loss or damage to Covered Property, caused by collapse of a building or any part of a building insured under this Coverage Form, if the collapse is caused by one or more of the following: (a) The "specified causes of loss" or breakage of building glass, all only as insured against in this Coverage Form; (b) Hidden decay; (c) Hidden insect or vermin damage; (d) Weight of people or personal property; (e) Weight of rain that collects on a roof; (f) Use of defective material or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling or renovation. However, if the collapse occurs after construction, remodeling or renovation is complete and is caused in part by a cause of loss listed in f.(1)(a) through f.(1)(e) above, we will pay for the loss or damage even if use of defective material or methods, in construction, remodeling or renovation, contributes to the collapse. (2) If the direct physical loss or damage does not involve collapse of a building or any part of a building, we will pay for loss or damage to Covered Property caused by the collapse of personal property only if: (a) The personal property which collapses is inside a building; and (b) The collapse was caused by a cause of loss listed in f.(1)(a) through f.(1)(f) above. AIMUPR0004 3 2003 Page 3 of 23 Includes copyrighted material of insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1994 ARCHINSURANCECOMPANY (3) With respect to the following property: (a) Outdoor radio or television antennas (including satellite dishes) and their lead-in wiring, masts or towers; (b) Awnings, gutters and downspouts; (c) Yard fixtures; (d) Outdoor swimming pools; (e) Fences; (f) Piers, wharves and docks; (g) Beach or diving platforms or appurtenances; (h) Retaining walls; and (i) Walks, roadways and other paved surfaces; if the collapse is caused by a cause of loss listed in f.(1)(b) through f.(1)(f) we will pay for loss or damage to that property only if: (a) Such loss or damage is a direct result of the collapse of a building insured under this Coverage Form; and (b) The property is Covered Property under this Coverage Form. (4) Collapse does not include settling, cracking, shrinkage, bulging or expansion. (5) This Additional Coverage -- Collapse will not increase the Limits of Insurance provided in this Coverage Form. Coverage Extensions Except as otherwise provided, the following Extensions apply to property located in or on the building described in the Declarations or in the open (or in a vehicle). Each of these Extensions is additional insurance. The Deductible shown in the Declarations applies to each of these Extensions, unless otherwise stated. The Additional Condition, Coinsurance, unless otherwise stated, does not apply to these Extensions: a. Newly Acquired or Constructed Property (1) You may extend the insurance that applies to Building to apply to: (a) Your new buildings while being built on the described premises; and (b) Buildings you acquire at locations, other than the described premises, intended for: (i) Similar use as the building described in the Declarations; or (ii) Use as a warehouse. The most we will pay for loss or damage under this Extension is $1,000,000 at each building. (2) You may extend the insurance that applies to Your Business Personal Property to apply to that property at any location you acquire other than at fairs or exhibitions. The most we will pay for loss or damage under this Extension is $250,000 at each building. (3) Insurance under this Extension for each newly acquired or constructed property will end when any of the following first occurs; {a) This policy expires; {b) 180 days expire after you acquire or begin to construct the property; or (c)You report values to us. We will charge you additional premium for values reported from the date construction begins or you acquire the property. b, Personal Effects and Property of Others You may extend the insurance that applies to Your Business Personal Property to apply to: (1) Personal Effects owned by you, your employees, elected or appointed officials, or volunteers. This Extension applies to Personal Effects located in or on the building described in the Declarations or in the open (or in a vehicle) within 1,000 feet of the described premises. This Extension does not apply to loss or damage by theft. The most we will pay for loss or damage to Personal Effects under this Extension is $1,000 for personal property owned by you, or any one employee, elected or appointed official, or volunteer; subject to an occurrence limit of $50,000. (2) Personal Property of Others (a) In your care, custody or control; and (b) Located over 1,000 feet from the described premises. The most we will pay for loss or damage to Personal Property of Others under this Extension is $15,000 in any one occurrence. Our payment for loss or damage to: AIMUPR0004 3 2003 Page 4 of 23 Includes copyrighted material of Insurance Services Office, inc., with its permission. Copyright, Insurance Services Office, Inc., 1994 ARCH INSURANCE COMPANY (a) Personal Effects owned by you, your employees, elected or appointed officials, or volunteers; or AIMUPR0004 3 2003 Page 5 of 23 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1994 ARCHINSURANCECOMPANY (b) Personal Property of Others will only be for the account of the owner of the property. c. Valuable Papers and Records -- Cost of Research You may extend the insurance that applies to Your Business Personal Property to apply to your costs to research, replace or restore the lost information on lost or damaged valuable papers and records, including those which exist on electronic or magnetic media, for which duplicates do not exist. This Extension applies to your valuable papers and records located in the building described in the Declarations or within 1,000 feet of the described premises. The most we will pay under this Extension is $250,000 in any one occurrence. d, Property Off-Premises You may extend the insurance provided by this Coverage Form to apply to your Covered Property, other than "stock," that is temporarily at a location you do not own, lease or operate. This Extension does not apply to Covered Property: (1) In or on a vehicle; or (2) At any fair or exhibition. The most we will pay for loss or damage under this Extension is $100,000 in any one occurrence. e. Outdoor Property You may extend the insurance provided by this Coverage Form to apply to your outdoor property. The most we will pay for loss or damage under this Extension to fences, signs (other than signs attached to buildings), guardrails, traffic lights, rcadsigns, backstops, goal posts, playground equipment, scoreboards, trees, shrubs, plants, and lawns (excluding golf course greens), including debris removal expense, is $10,000 in any one occurrence. For all other outdoor property, the most we will pay for loss or damage under this Extension is $5,000 in any one occurrence. The loss or damage must be caused by or resulting from any of the following causes of loss if they are Covered Causes of Loss: (1) Fire; (2) Lightning; (3) Explosion; (4) Riot or Civil Commotion; or (5) Aircraft. Golf Course Greens You may extend the insurance provided by this Coverage Form to apply to your gotf course greens. The most we will pay for loss or damage under this Extension is $100,000 in any one occurrence. Personal Computers, EDP Equipment, Data or Media You may extend the insurance that applies to Your Business Personal Property to apply to your personal computers, electronic data processing equipment, data or media. This Extension includes the property of others that you hold in any capacity, or for which you are responsible. ('1) Coverage under this Extension includes: (a) Personal computers, electronic data processing and word processing equipment, including their component parts; (b) Data stored on media for use with (a) above, including facts, concepts, computer programs and instructional vehicles used in your data processing system as well as accounts, bills, evidences of debt, valuable papers and records, abstracts, deeds, manuscripts or other documents in data processing media form; and (c) Media for use with (a) above on which the data is stored. (2) We will not cover the following kinds of equipment, data or media: (a) Any data or media for which duplicates or replacements do not exist; or (b) Property rented or leased to others while away from the described premises. (3) Payment for loss under this Extension will be determined as follows: (a) Personal Computers and EDP Equipment. We will pay the least of the following amounts: (i) The cost of reasonably restoring that property to its condition immediately before the loss or damage; or (ii) The cost of replacing that property with identical property. AIMUPR0004 3 2003 Page 6 of 23 Includes copyrighted material of insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1994 ARCH INSURANCE COMPANY However, when repair or replacement with identical property is not possible, we will pay the cost to replace that property with similar property capable of performing the same functions. If not repaired or replaced, the property will be valued at its actual cash value. (b) Data. We will pay up to the actual cost incurred of reproducing the data. (c) Media. We will pay to repair or replace the media with material of the same kind and quality. (4) The following exclusions contained in Section C -- Exclusions do not apply to this Extension: (a) Exclusion 1.e. (Utility Services); (b) Exclusion 2.a. (Artificially generated electric current); (c) Exclusion 2.d.(6) (Mechanical breakdown); and (d) Exclusion 2.d.(7) (Dampness or dryness of atmosphere, changes in or extremes of temperature and marring or scratching). ($) The most we will pay under this Extension is $250,000 in any one occurrence; however, (a) If the lost or damaged equipment, data or media: (i) Is lost or damaged while in transit or on a vehicle, or (ii) Is a laptop computer, including its portable accessories, owned by you that is used by your employees, elected or appointed officials, or volunteers at a location away from the described premises, the most we will pay is $10,000 in any one occurrence; or (b) If the loss or damage to equipment, data or media is caused by or resulting from any of the items listed in (4) above, the most we will pay is $10,000 in any one occurrence at each described premises. Our payment of loss or damage to property of others will only be for the account of the owner of the property. Accounts Receivable You may extend the insurance that applies to Your Business Personal Property to apply to loss because of loss or damage to your records of accounts receivable: (1) At a described premises or in or on a vehicle in transit between described premises; or (2) If the records must be removed from a described premises to protect them from the threat of a Covered Cause of Loss. We will pay: ('1) All amounts due from your customers that you ars unable to collect; (2) Interest charges on any loan required to offset amounts you are unable to collect pending our payment of these amounts; (3) Collection expenses in excess of your normal collection expenses that are made necessary because of loss or damage; and (4) Other reasonable expenses that you incur to rs-establish your records of accounts receivable; that result from Covered Causes of Loss to your records of accounts receivable. Accounts receivable loss payment will be determined as follows: (1) When thers is proof that a covered loss has occurred but you cannot accurately establish the amount of accounts receivable outstanding at the time of the loss, the amount of the loss will be computed as follows: (a) Determine the total of the average monthly amounts of accounts receivable for the 12 months immediately preceding the month in which the loss or damage occurs; and (b) Adjust that total for any normal fluctuations in the amount of accounts receivable for the month in which the loss or damage occurred or for any demonstrated variance from the average for that month. (2) We will deduct from the established total amount of accounts receivable: (a) The amount of the accounts forwhich thers is no toss or damage; (b) The amount of the accounts that you are able to re-establish or collect; AIMUPR0004 3 2003 Page 7 of 23 Includes copyrighted material of Insurance Services Office, inc., with its permission. Copyright, insurance Services Office, Inc., 1994 ARCHINSURANCECOMPANY (c) An amount to allow for probable bad debts that you are normally unable to collect; and (d) All unearned interest and service charges. (3) If you recover the amount of any accounts receivable that were included in the amount of the paid loss, you will return the recovered amount to us, up to the total amount of the paid loss. You will keep the amount of any accounts receivable you recover in excess of the amount of the paid loss. The most we will pay under this Extension is $250,000 in any one occurrence. If accounts receivable records are lost or damaged in transit, the most we will pay is $10,000. Fairs or Exhibitions You may extend the insurance provided by this Coverage Form to apply to your Covered Property at any fair or exhibition. The most we will pay for loss or damage under this Extension is $50,000 in any one occurrence. Fire Equipment Recharge You may extend the insurance provided by this Coverage Form to apply to the recharge or refill of your fire protective devices that are permanently installed in buildings at the described premises. This Extension applies when such devices have been discharged by accident but not for periodic recharge. The most we will pay under this Extension is $5,000 for each separate 12 month period of this policy. No Deductible applies to this Coverage Extension. Inventory Or Appraisal You may extend the insurance provided by this Coverage Form to apply to the following expenses you incur to prepare a claim as described in Section G.2.c. -- LOSS CONDITIONS, Duties In The Event Of Loss Or Damage: (1) The cost of taking inventories; (2) The cost of making appraisals; and (3) The cost of preparing a statement of loss and other supporting exhibits. The most we will pay under this Extension for any claim is $10,000. AIMUPR0004 3 2003 Page 8 of 23 Animal Mortality You may extend the insurance provided by this Coverage Form to include loss caused by the death or destruction of your animals: (1) Used by your police department as part of a canine or equestrian patrol; or (2) On exhibit at your zoos. The most we will pay under this Extension is $10,000 in any one occurrence. Grounds Maintenance Equipment You may extend the insurance provided by this Coverage Form to apply to your grounds maintenance equipment. The most we will pay under this Extension is $100,000 in any one occurrence for loss or damage to such equipment, including but not limited to lawnmowers, snowblowers, and other miscellaneous portable grounds maintenance equipment. Extra Expense and Business Income (1) Extra Expense You may extend the insurance provided by this Coverage Form to apply to the actual and necessary extra expense you sustain due to direct physical loss or damage to property at the described premises caused by or resulting from a Covered Cause of Loss. Extra Expense means necessary expenses you incur during the ~period of restoration" that you would not have incurred if there had been no direct physical loss or damage to property: (a) To avoid or minimize the suspension of business and to continue "operations"; (b) To minimize the suspension of business if you cannot continue "operations"; or (c) To repair or replace any property to the extent it reduces the amount of loss that otherwise would have been payable under this Extension. The most we will pay for loss under this Extension is $500,000 at each described premises. (2) Business Income You may extend the insurance provided by this Coverage Form to apply to the actual loss of Business Income you sustain due to the necessary suspension of your "operations" at the described includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, inc., 1994 ARCHINSURANCE COMPANY (3) (4) premises during the "pedod of restoration." Business Income means: (a) Net Income (Net Profit or Loss before income taxes) that would have been earned or incurred, from: (i) "Rental value"; (ii) Park and recreational facilities; (iii) Zoos; (iv) Athletic events; and (v) Grants, and (b) Continuing normal operating expenses incurred, including payroll. The most we will pay under this Coverage Extension is $100,000 in any one occurrence. ~Operations' means: (a) Your business activities, occurring at the described premises; and (b) The tenantability of the described tenant occupied premises. "Period of Restoration" means the period of time that: (a) Begins: (i) 72 hours after the time of direct physical loss or damage for Business Income coverage; or (ii) Immediately after the time of direct physical loss or damage for Extra Expense coverage; caused by or resulting from any Covered Cause of Loss at the described premises; and (b) Ends on the earlier of: (i) ']'he date when the property at the described premises should be repaired, rebuilt or replaced with reasonable speed and similar quality; or (ii) The date when business is resumed at a new permanent location. "Period of Restoration" does not include any increased period required due to the enforcement of any ordinance or law that: (a) Regulates the construction, use or repair, or requires the tearing down of any property; or (b) Requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants." The expiration date of this policy will not cut short the "period of restoration." (5) "Rental Value" means the: (a) Total anticipated rental income from tenant occupancy of the premises described in the Declarations as furnished and equipped by you, and (b) Amount of all charges which are the legal obligation of the tenant(s) and which would otherwise be your obligations, and (c) Fair rental value of any portion of the described premises which is occupied by you. Fine Arts You may extend the insurance provided 'by this Coverage Form to apply to Fine Arts that are: (1) Your property; or (2) The property of others that is in your care, custody or control; and (3) Located within 1,000 feet of the described premises. As used in this Coverage Extension, Fine Arts means paintings, etchings, pictures, tapestries, art glass windows, valuable rugs, statuary, marble, bronze, antique silver, manuscripts, porcelain, rare glass, bric-a- brac, and similar property of rarity, historical value or artistic merit. The value of Fine Art will be the market value at the time of loss or damage. The most we will pay for loss or damage under this Extension is $5,000 any one item and $25,000 in any one occurrence. In the event of the total loss of any given item or items that are part of a set, we agree to pay you the total value of the set and you agree to surrender the remaining part of the set to us. Theft Damage to Non-Owned Buildings You may extend the insurance provided by this Coverage Form to apply to the ensuing costs you incur to repair damages to that part of a building that you occupy but do not own, if; ('1) The damages resulted directly from theft; and AIMUPR0004 3 2003 Page 9 of 23 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1994 ARCHINSURANCE COMPANY (2) You assume responsibility for such damages under a lease agreement that was executed prior to the theft. The most we will pay under this Extension for loss or damage is $50,000 in any one occurrence. Paved Surfaces You may extend the insurance provided by this Coverage Form to apply to the paved surfaces of your outdoor playgrounds, tennis courts, running tracks or other outdoor athletic courts. The loss or damage must be caused by or resulting from a Covered Cause of Loss; however, no coverage is provided for loss or damage caused by freezing and thawing or by vehicles. The most we will pay for loss or damage under this Extension is $100,000 in any one occurrence. Unnamed Locations You may extend the insurance provided under this Coverage Form to apply to your Covered Property at any location not on file with the Company. The most we will pay under this Extension is $I,000,000 in any one occurrence. Property in Transit This Extension applies only to Your Business Personal Property to which this form applies. (1) You may extend the insurance provided by this Coverage Form to apply to Your Business Pemonal Property in transit more than 1,000 feet from the described premises. Property must be in or on a motor vehicle you own, lease or operate while between points in the coverage territory. (2) Loss or damage must be caused by or result from one of the following causes of loss: (a) Fire, lightning, explosion, windstorm or hail, riot or civil commotion, or vandalism. (b) Vehicle collision, upset or overturn. Collision means accidental contact of your vehicle with another vehicle or object. It does not mean your vehicle's contact with the roadbed. (c) Theft of an entire bale, case or package by forced entry into a securely locked body or compartment AIMUPR0004 3 2003 of the vehicle. There must be visible marks of the forced entry. The most we will pay for the loss or damage under this Extension is $25,000 in any one occurrence. t. Building Ordinance or Law (1} If enforcement of an ordinance or law in effect at the time of loss regulating zoning, land use or construction of a building affects the repair or rebuilding of that building following damage by a Covered Cause of Loss, you may extend the insurance on Building to cover: (a) Costs to demolish and clear the site of the undamaged portions of the building; (b) The value of the undamaged portions of the building; and (c} The increased cost to repair, rebuild or reconstruct the building with another building of the same size, style and comparable quality. (2) We will not pay more under this Extension than if the repaired or replaced building was: (a) Rebuilt at the same location, as soon as reasonably possible; (b) To the same extent the law permits, of the same height, floor area, style and comparable quality as the one it replaces; and (c) Designed for the same type of occupancy and use as the one it replaces, unless otherwise required by zoning or land use ordinance or law. The increased rebuilding costs must be kept to the minimum needed to satisfy legal requirements. We will not pay for any costs to acquire land on which to rebuild. (3) If you do not repair or replace the damaged building, we will pay under this Extension only to demolish and clear the site of the undamaged portions of the building. (4) This Extension does not apply to the costs associated with the enforcement of any ordinance or law that requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants", asbestos or lead. Page 10 of 23 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1994 ARCHINSURANCE COMPANY The most we will pay under this Extension is $250,000 for loss to the undamaged portion of the building and/or demolition costs. The most we will pay for increased cost of construction as a result of an occurrence is ten percent (10%) of the value of that building as shown on the most recent statement of values on file with us. Any Coinsurance penalty applicable to the building will also apply to the amount otherwise payable under this Extension. u. Electrical Utility Services Interruption You may extend the insurance provided for Covered Property to apply to loss or damage caused by interruption of electric power supply services to the described premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to the following property not on the described premises: (1) Utility generating plants; (2) Switching stations or substations; (3) Transformers; and (4) Transmission lines, other than overhead transmission lines. The most we will pay under this Extension is $25,000 in any one occurrence. v. Foundations of Machinery You may extend the insurance that applies to Building to apply to foundations of machinery if their foundations are below: ('1) The lowest basement floor; or (2) The surface of the ground, if there is no basement. The most we will pay under this Extension is $500,000 in any one occurrence. w. Underground Pipes, Flues or Drains You may extend the insurance that applies to Building to apply to underground pipes, flues, or drains that are within 1,000 feet of the described premises. The most we will pay under this Extension is $1,000,000 in any one occurrence. x. Emergency Portable Equipment You may extend the insurance provided under this Coverage Form to apply to your emergency portable equipment. The most we will pay for loss or damage under this Extension is $50,000 in any one occurrence. Communication Towers You may extend the insurance provided under this Coverage Form to apply to radio and transmittal towers owned by you. The most we will pay for loss or damage under this Extension is $100,000 in any one occurrence. SECTION B-- OPTIONAL COVERAGES If shown in the Declarations, the following Optional Coverages apply separately to each item. 1. Agreed Value The Additional Condition, Coinsurance, does not apply to Covered Property to which this Optional Coverage applies. We will pay no more for loss of or damage to that property than the proportion that the Limit of Insurance under this Coverage Form for the property bears to the Agreed Value shown for it in the Declarations. 2. Inflation Guard a. The Limit of Insurance for property to which this Optional Coverage applies will automatically increase by the annual percentage shown in the Declarations. b. The amount of increase will be: (1) The Limit of Insurance that applied on the most recent of the policy inception date, the policy annivemary date, or any other policy change amending the Limit of Insurance, times (2) The percentage of annual increase shown in the Declarations, expressed as a decimal (example: 8% is .08), times (3) The number of days since the beginning of the current policy year or the effective date of the most recent policy change amending the Limit of Insurance, divided by 365. Example: If: The applicable Limit of Insurance is $100,000 The annual percentage increase is 8% The number of days since the beginning of the policy year (or last policy change) is 146 The amount of increase is $100,000 x .08 x 146 + 365 = $3,200 AIMUPR0004 3 2003 Page 11 of 23 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1994 ARCHINSURANCECOMPANY Replacement Cost a. Replacement Cost (without deduction for depreciation) replaces Actual Cash Value in the Loss Condition, Valuation, of this Coverage Form. b. This Optional Coverage does not apply to: (1) Personal property of others; (2) Contents of a residence; (3) Manuscripts; or (4) Works of art, antiques or rare articles, including etchings, pictures, statuary, marbles, bronzes, porcelains and bric-a- brac. c. You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of on a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim for the additional coverage this Optional Coverage provides if you notify us of your intent to do so within 180 days after the loss or damage. d. We will not pay on a replacement cost basis for any loss or damage: (1) Until the lost or damaged property is actually repaired or replaced; and (2) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage. e. We will not pay more for loss or damage on ~a replacement cost basis than the least of (1), (2) or (3), subject to f. below: ('1) The Limit of Insurance applicable to the lost or damaged property; (2) The cost to replace, on the same premises, the lost or damaged property with other property: (a) Of comparable material and quality; and (b) Used for the same purpose; or (3) The amount you actually spend that is necessary to repair or replace the lost or damaged property. f. The cost of repair or replacement does not include the increased cost attributabfe to enforcement of any ordinance or law regulating the construction, use or repair of any property. SECTION C -- EXCLUSIONS 1. We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. a. Ordinance or Law Except as provided under the Coverage Extensions, the enforcement of any ordinance or law: (1) Regulating the construction, use or repair of any property; or (2) Requiring the tearing down of any property, including the cost of removing its debris. This exclusion, Ordinance or Law, applies whether the loss results from: (1) An ordinance or law that is enforced even if the property has not been damaged; or (2) The increased costs incurred to comply with an ordinance or law in the course of construction, repair, renovation, remodeling or demolition of property, or removal of its debds, following a physical loss to that property. b. Earth Movement (1) Any earth movement (other than sinkhole collapse), such as earthquake, landslide, mine subsidence or earth sinking, dsing or shifting. But if earth movement results in fire or explosion, we will pay for the loss or damage caused by that fire or explosion. (2) Volcanic eruption, explosion or effusion. But if volcanic eruption, explosion or effusion results in fire, building glass breakage or volcanic action, we will pay for the loss or damage caused by that fire, building glass breakage or volcanic action. Volcanic action means direct loss or damage resulting from the eruption of a volcano when the loss or damage is caused by: (a) Airborne volcanic blast or airborne shock waves; (b) Ash, dust or particulate matter; or (c) Lava flow. All volcanic eruptions that occur within any 168 hour period will constitute a single occurrence. AIMUPR0004 3 2003 Page 12 of 23 Includes copyrighted material of insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc,, 1994 ARCHINSURANCE COMPANY Volcanic action does not include the cost to remove ash, dust or particulate matter that does not cause direct physical loss or damage to the described property. c, Governmental Action Seizure or destruction of property by order of governmental authority. But we will pay for loss or damage caused by or resulting from acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread, if the fire would be covered under this Coverage Form. d. Nuclear Hazard Nuclear reaction or radiation, or radioactive contamination, however caused. But if nuclear reaction or radiation or radioactive contamination, results in fire, we will pay for the loss or damage caused by that fire. e. Utility Services Except as provided under the Coverage Extensions, the failure of power or other utility service supplied to the described premises, however caused, if the failure occum away from the described premises. But if the failure of power or other utility service results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. f. War and Military Action ('1) War, including undeclared or civil war; (2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign OF other authority using military personnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these. g. Water (f) Flood, surface water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not; or (2) Mudslide or mudflow. But if water, as described in g.(t) and g.(2) results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage. We will not pay for loss or damage caused by or resulting from any of the following: a. Artificially generated electric current, including electric arcing, that disturbs electrical devices, appliances or wires. But if artificially generated electric current results in fire, we will pay for the loss or damage caused by that fire. b. Delay, loss of use or loss of market. c. Smoke, vapor or gas from agricultural smudging or industrial operations. d. ('1) Wear and tear; (2) Rust, corrosion, fungus, decay, deterioration, hidden or latent defect or any quality in property that causes it to damage or destroy itself; (3) Smog; (4) Settling, cracking, shrinking or expansion of pavements, foundations, walls, floors, roofs or ceilings; ($) Nesting or infestation, or discharge or release of waste products or secretions by insects, birds, rodents or other animals; (6) Mechanical breakdown, including rupture or bursting caused by centrifugal force. But if mechanical breakdown results in elevator collision, we will pay for the loss or damage caused by that elevator collision; or (7) The following causes of loss or damage to personal property: (a) Dampness or dryness of atmosphere; (b) Changes in or extremes of temperature; or (c) Marring or scratching. But if an excluded cause of loss that is listed in 2.d.('l) through 2.d.(7) results in a "specified cause of loss" or building glass breakage, we will pay for the loss or damage caused by that "specified cause of loss" or building glass breakage. e. Explosion of steam boilers, steam pipes, steam engines or steam turbines owned or leased by you, or operated under your control. But if explosion of steam boilers, steam pipes, steam engines or steam turbines results in fire or combustion explosion, we will pay for the loss or damage caused by that fire or combustion explosion. We will also pay for loss or damage caused by or resulting from the explosion of gases or fuel within the furnace of any fired vessel or within the flues AIMUPR0004 3 2003 Page 13 of 23 Includes copyrighted material of insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1994 ARCH INSURANCE COMPANY or passages through which the gases of combustion pass. ? ' f. Continuous or repeated seepage or leakage of water that occurs over a period of 14 days or more. g. Water, other liquid, powder or molten material that leaks or flows from plumbing, heating, air conditioning or other equipment (except fire protective systems) caused by or resulting from freezing, unless: (1) You do your best to maintain heat in the building or structure; or (2) You drain the equipment and shut off the supply if the heat is not maintained. h. Dishonest or criminal act by you, any of your employees (including leased employees), elected or appointed officials, directors, trustees, authorized representatives or anyone to whom you entrust the property for any purpose: (1) Acting alone or in collusion with others; or (2) Whether or not occurring during the hours of employment. This exclusion does not apply to acts of destruction by your employees (including leased employees); but theft by employees F'-", ~ (including leased employees) is not covered. i. Voluntary parting with any property by you or anyone else to whom you have entrusted the property if induced to do so by any fraudulent scheme, trick, device or false pretense. j. Rain, snow, ice or sleet to personal property in the open. k. Collapse, except as provided in the Additional Coverage for Collapse. But if collapse results in a Covered Cause of Loss at the described premises, we will pay for the loss or damage caused by that Covered Cause of Loss. I. Discharge, dispersal, seepage, migration, release or escape of "pollutants" unless the discharge, dispersal, seepage, migration, release or escape is itself caused by any of the "specified causes of loss." But if the discharge, dispersal, seepage, migration, release or escape of "pollutants" results in a "specified cause of loss," we will pay for the loss or damage caused by that "specified cause of loss." 3. We will not pay for loss or damage caused by or resulting from any of the following, 3.a. through 3.c. But if an excluded cause of loss that is listed in 3.a. through 3.c. results in a Covered Cause ~'"" of Loss, we will pay for loss or damage caused by that Covered Cause of Loss. a. Weather conditions. But this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in paragraph 1. above to produce the loss or damage. b. Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body. c. Faulty, inadequate or defective: (1) Planning, zoning, development, surveying, siting; (2) Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction; (3) Materials used in repair, construction, renovation or remodeling; or (4) Maintenance; of part or all of any property on or off the described premises. SECTION D-- LIMITATIONS The following limitations apply to all policy forms and endorsements, unless otherwise stated. '1. We will not pay for loss of or damage to property, as described and limited in this section. In addition, we will not pay for any loss that is a consequence of loss or damage as described and limited in this section. a. Steam boilers, steam pipes, steam engines or steam turbines caused by or resulting from any condition or event inside such equipment. But we will pay for loss of or damage to such equipment caused by or resulting from an explosion of gases or fuel within the furnace of any fired vessel or within the flues or passages through which the gases of combustion pass. b. Hot water boilers or other water heating equipment caused by or resulting from any condition or event inside such boilers or equipment, other than an explosion. c. Property that is missing, where the only evidence of the loss or damage is a shortage disclosed on taking inventory, or other instances where there is no physical evidence to show what happened to the property. d. Gutters and downspouts caused by or resulting from weight of snow, ice or sleet. e. Property that has been transferred to a person or to a place outside the described AIMUPR0004 3 2003 Page 14 of 23 Includes copyrighted material of Insurance Services Office, [nc., with its permission. Copyright, insurance Services Office, Inc., 1994 ARCHINSURANCE COMPANY ., promises on the basis of unauthorized instructions. We will not pay more than $25,000 for diroct physical loss or damage caused by: a. Water that backs-up from a sewer or drain; or b. Water under the ground surface pressing on, or flowing or seeping through: (l) Foundations, walls, floors or paved surfaces; (2) Basements, whether paved or not; or (3) Doors, windows or other openings. We will not pay for loss of or damage to the following types of property unless caused by the "specified causes of loss" or building glass breakage: a. Valuable papers and rocords, such as books of account, manuscripts, abstracts, drawings, card index systems, film, tape, disc, drum, cell or other data processing, rocording or storage media, and other records. b. Animals, and then only if they are killed or their destruction is made necessary. c. Fragile articles such as glassware, statuary, marbles, chinawaro and porcelains, if broken. This rostriction does not apply to: (1) Glass that is part of a building or structure; (2) Containers of property held for sale; or (3) Photographic or scientific instrument lenses. The special limit shown for each category, a. through c., is the total limit for loss of or damage to all property in that category. The special limit applies to any one occurrence of theft, regardless of the types or number of articles that are lost or damaged in that occurrence. The special limits are: a. $2,500 for furs, fur garments and garments trimmed with fur. b. $2,500 for jewelry, watches, watch movements, jewels, pearls, precious and semi-precious stones, bullion, gold, silver, platinum and other precious alloys or metals. This limit does not apply to jewelry and watches worth $100 or less per item. c. $250 for stamps, tickets and letters of credit. These special limits are part of, not in addition to, the Limit of Insurance applicable to the Covered Property. We will not pay the cost to repair any defect to a system or appliance from which water, other AIMUPR0004 3 2003 Page 15 of 23 includes copyrighted material of Insurance Services Office, Inc.. with its permission. Copyright, Insurance Services Office, Inc., 1994 liquid, powder or molten material escapes. But we will pay the cost to repair or replace damaged ARCHINSURANCECOMPANY parts of fire extinguishing equipment if the damage: a. Results in discharge of any substance from an automatic fire protection system; or b. Is directly caused by freezing. However, this limitation does not apply to the Extra Expense and Business Income Coverage Extension. SECTION E-- LIMITS OF INSURANCE The most we will pay for loss or damage in any one occurrence is the applicable Limit of Insurance shown in the Declarations. The most we will pay for loss or damage to outdoor signs attached to buildings is $5,000 per sign in any one occurrence. The limits applicable to the Coverage Extensions and the Fire Department Service Charge and Pollutant Clean Up and Removal Additional Coverages are in addition to the Limits of Insurance. Payments under the following Additional Coverages will not increase the applicable Limit of Insurance: '1. Preservation of Property; 2. Collapse; 3. Water Damage, Other Liquid, Powder or Molten Material Damage; or 4. Debris Removal; but if: a. The sum of direct physical loss or damage and debris removal expense exceeds the Limit of Insurance; or b. The debris removal expense exceeds the amount payable under the 25% limitation in the Debris Removal Additional Coverage; we will pay up to an additional $10,000 for each location in any one occurrence under the Debris Removal Additional Coverage. SECTION F -- DEDUCTIBLE We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds the Deductible shown in the Declarations. We will then pay the amount of loss or damage in excess of the Deductible, up to the applicable Limit of Insurance, after any deduction required by the Coinsurance condition or the Agreed Value Optional Coverage. When the occurrence involves loss to more than one item of Covered Property and more than one Limit of insurance applies, the Deductible will reduce the total amount of loss payable if loss to at least one item is ~'/'--'" less than the sum of (1) the Limit of Insurance ' applicable to that item plus (2) the Deductible. Example No. 1: (This example assumes there is no coinsurance penalty.) Deductible: Limit of Insurance - Bldg. 1: Limit of Insurance - Bldg. 2: Loss to Bldg. 1: Loss to Bldg. 2: $250 $60,000 $80,000 $60,100 $90,000 The amount of loss to Bldg. 1 ($60,100) is less than the sum ($60,250) of the Limit of Insurance applicable to Bldg. 1 plus the Deductible. The Deductible will be subtracted from the amount of loss in calculating the loss payable for Bldg. 1: $60,100 -250 $59,850 Loss Payable - Bldg. 1 The Deductible applies once per occurrence and therefore is not subtracted in determining the amount of loss payable for Bldg. 2. Loss payable for Bldg. 2 is the Limit of Insurance of $80,000. Total amount of loss payable: $59,850 + 80,000 = $139,85O. Example No. 2: (This example, too, assumes there is no coinsurance penalty.) The Deductible and Limits of Insurance are the same as those in Example No. 1. Loss to Bldg. 1: $70,000 Loss to Bldg. 2: $90,000 Loss Payable - Bldg. 1: $60,000 Loss Payable - Bldg. 2: $80,000 Total amount of loss payable: $140,000 (exceeds Limit of Insurance plus Deductible) (exceeds Limit of Insurance plus Deductible) (Limit of Insur- ance) (Limit of Insur- ance) AIMUPR0004 3 2003 Page 16 of 23 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1994 ARCH INSURANCE COMPANY SECTION G -- CONDITIONS iThe following conditions apply in addition to the 'COmmon Policy Conditions: ~'1. COMMERCIAL PROPERTY CONDITIONS a. Concealment, Misrepresentation Or Fraud This Coverage Form is void in any case of fraud by you as it relates to this Coverage Form at any time. It is also void if you or any other insured, at any time, intentionally conceal or misrepresent a material fact concerning: (1) This Coverage Form; (2) The Covered Property; (3) Your interest in the Covered Property; or (4) A claim under this Coverage Form. b. Control Of Property Any act or neglect of any person other than you beyond your direction or control will not affect this insurance. The breach of any condition of this Coverage Form at any one or more locations will not affect coverage at any location where, at the time of loss or damage, the breach of condition does not exist. i c. Insurance Under Two Or More Coverages If two or more of this policy's coverages apply to the same loss or damage, we will not pay more than the actual amount of the loss or damage. d. Legal Action Against Us No one may bring a legal action against us under this Coverage Form unless: (1) There has been full compliance with all of the terms of this Coverage Form; and (2) The action is brought within 2 years after the date on which the direct physical loss or damage occurred. e. Liberalization If we adopt any revision that would broaden the coverage under this Coverage Form without additional premium within 45 days prior to or during the policy period, the broadened coverage will immediately apply to this Coverage Form. f. No Benefit To Bailee No person or organization, other than you, having custody of Covered Property will benefit from this insurance. AIMUPR0004 3 2003 Page 17 of 23 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc,, 1994 ARCHINSURANCE COMPANY g. Other Insurance (l) You may have other insurance subject to the same plan, terms, conditions and provisions as the insurance under this Coverage Form. If you do, we will pay our share of the covered loss or damage. Our share is the proportion that the applicable Limit of Insurance under this Coverage Form bears to the Limits of Insurance of all insurance covering on the same basis. (2) If there is other insurance covedng the same loss or damage, other than that described in ('1) above, we will pay only for the amount of covered loss or damage in excess of the amount due from that other insurance, whether you can collect on it or not. But we will not pay more than the applicable Limit of Insurance. h. Policy Period, Coverage Territory Under this Coverage Form: (1) We cover loss or damage commencing: (a) During the policy period shown in the Declarations; and (b) Within the coverage territory. (2) The coverage territory is: (a) The United States of Amedca (including its territories and possessions); (b) Puerto Rico; and (c) Canada. i. Transfer Of Rights Of Recovery Against Others To Us If any person or organization to or for whom we make payment under this Coverage Form has rights to recover damages lmm another, those rights are transferred to us to the extent of our payment. That person or organization must do everything necessary to secure our rights and must do nothing after loss to impair them. But you may waive your rights against another party in writing: ('1) Prior to a loss to your Covered Properly or Covered Income. (2) After a loss to your Covered Property or Covered Income only if, at time of loss, that party is one of the following: (a) Someone insured by this insurance; (b) A business firm: (i) Owned or controlled by you; or (ii) That owns or controls you; or (c) Your tenant. This will not restrict your insurance. LOSS CONDITIONS a. Abandonment There can be no abandonment of any property to us. b. Appraisal If we and you disagree on the value of the property or the amount of loss, either may make written demand for an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the value of the property and amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: ('1) Pay its chosen appraiser; and (2) Bear the other expenses of the appraisal and umpire equally. If there is an appraisal, we will still retain our right to deny the claim. c. Duties In The Event Of Loss Or Damage You must see that the following are done in the event of loss or damage to Covered Property: ('1) Notify the police if a law may have been broken. (2) Give us prompt notice of the loss or damage. Include a description of the property involved. (3) As soon as possible, give us a description of how, when and where the loss or damage occurred. (4) Take all reasonable steps to protect the Covered Property from further damage and keep a record of your expenses necessary to protect the Covered Property, for consideration in the settlement of the claim. This will not increase the Limit of Insurance. However, we will not pay for any subsequent loss or damage resulting from a cause of loss that is not a Covered Cause of Loss. Also, if feasible, set the damaged property aside and in the best possible order for examination. AIMUPR0004 3 2003 Page 18 of 23 Includes copyrighted material of insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1994 ARCH INSURANCE COMPANY do (5) At our request, give us complete inventories of the damaged and undamaged property. Include quantities, costs, values and amount of loss claimed. (6) As often as may be reasonably required, permit us to inspect the property proving the loss or damage and examine your books and records. Also permit us to take samples of damaged and undamaged property for inspection, testing and analysis, and permit us to make copies from your books and records. (7) Send us a signed, sworn proof of loss containing the information we request to investigate the claim. You must do this within 60 days after our request. We will supply you with the necessary forms. (8) Cooperate with us in the investigation or settlement of the claim. We may examine any insured under oath, while not in the presence of any other insured and at such times as may be reasonably required, about any matter relating to this insurance or the claim, including an insured's books and records. In the event of an examination, an insured's answer must be signed. Loss Payment (1) In the event of loss or damage covered by this Coverage Form, at our option, we will either: (a) Pay the value of lost or damaged property; (b) Pay the cost of repairing or replacing the lost or damaged property; subject to (2) below; (c) Take all or any part of the property at an agreed or appraised value; or (d) Repair, rebuild or replace the property with other property of like kind and quality, subject to (2) below. (2) The cost to repair, rebuild or replace does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property. (3) We will give notice of our intentions within 30 days after we receive the sworn proof of loss. (4) We will not pay you more than your financial interest in the Covered Property. AIMUPR0004 3 2003 (5) We may adjust losses with the owners of lost or damaged property if other than you. If we pay the owners, such payments will satisfy your claims against us for the owners' property. We will not pay the owners more than their financial interest in the Covered Property. (6) We may elect at our expense to defend you against suits arising from claims of owners of property. (7) We will pay for covered loss or damage within 30 days after we receive the sworn proof of loss, if you have complied with all of the terms of this Coverage Form and: (a) We have reached agreement with you on the amount of loss; or (b) An appraisal award has been made. e. Recovered Property If either you or we recover any property after loss settlement, that party must give the other prompt notice. At your option, the property will be returned to you. You must then return to us the amount we paid to you for the property. We will pay recovery expenses and the expenses to repair the recovered property, subject to the Limit of Insurance. f. Vacancy (1) Description of Terms (a) As used in this Vacancy Condition, the term building and the term vacant have the meanings set forth in (a)(i) and (a)(ii) below: (i) When this policy is issued to a tenant, and with respect to that tenant's interest in Covered Property, building means the unit or suite rented or leased to the tenant. Such building is vacant when it does not contain enough business personal property to conduct customary operations. (ii) When this policy is issued to the owner of a building, building means the entire building. Such building is vacant when 70% or more of its square footage: (aa) Is not rented; or (bb) Is not used to conduct customary operations. (b) Buildings under construction or renovation are not considered vacant. (2) Vacancy Provisions Page 19 of 23 Includes copyrighted mateda] of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1994 ARCHINSURANCECOMPANY AIMUPR0004 3 2003 If the building where loss or damage occurs has been vacant for more than 60 consecutive days before that loss or damage occurs: (a) We will not pay for any loss or damage caused by any of the following even if they are Covered Causes of Loss: (i) Vandalism; (ii) Sprinkler leakage, unless you have protected the system against freezing; (iii) Building glass breakage; (iv) Water damage; (v) Theft; or (vi) Attempted theft. (b) With respect to Covered Causes of Loss other than those listed in (2)(a)(i) through (2)(a)(vi) above, we will reduce the amount we would otherwise pay for the loss or damage by 15%. g. Valuation We will determine the value of Covered Property in the event of loss or damage as follows: (1) At actual cash value as of the time of loss or damage, except as provided in (2), {3), (4), (5),and (6) below. (2) If the Limit of Insurance for Building satisfies the Additional Condition. Coinsurance, and the cost to repair or replace the damaged building property is $2,500 or less, we will pay the cost of building repairs or replacement. Any increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property is not covered and may not be included within the cost of building repairs or replacement. The following property will be valued at the actual cash value even when attached to the building: (a) Awnings or floor coverings; (b) Appliances for refrigerating, ventilating, cooking, dishwashing or laundering; or (c) Outdoor equipment or furniture. (3) "Stock" you have sold but not delivered at the selling price less discounts and expenses you otherwise would have had. (4) Glass at the cost of replacement with safety glazing material if required by law. Page 20 of 23 Includes copyrighted material of Insurance Sen/ices Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1994 ARCHINSURANCE COMPANY (5) Tenant's Improvements and Betterments at: (a) Actual cash value of the lost or damaged property if you make repaim promptly. (b) A proportion of your original cost if you do not make repairs promptly. We will determine the proportionate value as follows: (i) Multiply the original cost by the number of days from the loss or damage to the expiration of the lease; and (ii) Divide the amount determined in (i) above by the number of days from the installation of improvements to the expiration of the lease. If your lease contains a renewal option, the expiration of the renewal option period will replace the expiration of the lease in this procedure. (c) Nothing if othem pay for repairs or replacement. (6) Valuable Papem and Records, including those which exist on electronic or magnetic media (other than prepackaged software programs), at the cost of: (a) Blank materials for reproducing the records; and (b) Labor to transcribe or copy the records when them is a duplicate. ADDITIONAL CONDITIONS a. Coinsurance If a Coinsurance percentage is shown in the Declarations, the following condition applies: (1) We will not pay the full amount of any loss if the value of the Covered Property at the time of loss times the Coinsurance pementage shown for it in the Declarations is greater than the Limit of Insurance for the property. Instead, we will determine the amount we will pay using the following steps: (a) Multiply the value of the Covered Property at the time of loss by the Coinsurance pementage; (b) Divide the Limit of Insurance of the property by the figure determined in step (a); AIMUPR0004 3 2003 (c) Multiply the total amount of loss, before the application of any deductible, by the figure determined in step (b); and (d) Subtract the deductible from the figure determined in step (c). We will pay the amount determined in step (d) or the limit of insurance, whichever is less. For the remainder, you will either have to rely on other insurance or absorb the loss yourself. Example No, 1 (Underinsurance) When: The value of the property is $250,000 The Coinsurance percentage for it is 80% The Limit of Insurance for it is The deductible is The amount of loss is $100,000 $250 $40,000 When: The value of the property is $250,000 The Coinsurance percentage for it is 80% The Limit of Insurance for it is $200,000 The deductible is $250 The amount of loss is $40,000 The minimum amount of insurance to meet your Coinsurance requirement is $200,000 ($250,000 x 80%). Therefore, the Limit of Insurance in this Example is adequate and no penalty applies. We will pay no more than $39,750 ($40,000 amount of loss minus the deductible of $250). If one Limit of Insurance applies to two or mom separate items, this condition will apply to the total of all property to which the limit applies. Page 21 of 23 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1994 Step (1): $250,000 x 80% = $200,000 (the minimum amount of insurance to meet your Coinsurance Requirements) Step (2): $100,000 + $200,000 = .50 Step (3): $40,000 x .50 = $20,000 Step (4): $20,000 - $250 = $19,750 We will pay no more than $19,750. The remaining $20,250 is not covered. Example No. 2 (Adequate Insurance) ARCHINSURANCE COMPANY Example No. 3 When: The value of the property is: Bldg. at Location No. 1 Bldg. at Location No. 2 Personal Property at Location No. 2 The Coinsurance percentage for it is The Limit of Insurance for Buildings and Personal Property at Location Nos. 1 and 2 is The Deductible is The amount of loss is: Bldg. at Location No. 2 Personal Property at Location No. 2 $75,000 $100,000 $75,000 $250,000 90% $180,000 $1,000 $30,000 $20,000 $50,000 Step (1): $250,000 x 90% = $225,000 (the minimum amount of insurance to meet your Coinsurance requirements and to avoid the penalty shown below) Step (2): $180,000 + $225,000 = .80 Step (3): $50,000 x .80 = $40,000. Step (4): $40,000 - $1,000 = $39,000. We will pay no more than $39,000. The remaining $11,000 is not covered. Mortgageholders (1) The term mortgageholder includes trustee. (2) We will pay for covered loss of or damage to buildings or structures to each mortgageholder shown in the Declarations in their order of precedence, as interests may appear. (3) The mortgageholder has the right to receive loss payment even if the mortgageholder has started foreclosure or similar action on the building or structure. (4) If we deny your claim because of your acts or because you have failed to comply with the terms of this Coverage Form, the modgageholder will still have the dght to receive loss payment if the mortgageholder: (a) Pays any premium due under this Coverage Form at our request if you have failed to do so; (b) Submits a signed, sworn proof of toss within 60 days after receiving notice from us of your failure to do so; and (c) Has notified us of any change in ownership, occupancy or substantial change in dsk known to the mortgageholder. All of the terms of this Coverage Form will then apply directly to the mortgageholder. (5) If we pay the mortgageholder for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this Coverage Form: (a) The mortgageholder's rights under the mortgage will be transferred to us to the extent of the amount we pay; and (b) The mortgageholder's right to recover the full amount of the mortgageholder's claim will not be impaired. At our option, we may pay to the mortgageholder the whole principal on the mortgage plus any accrued interest. In this event, your mortgage and note will be transferred to us and you will pay your remaining mortgage debt to us. (6) If we cancel this policy, we will give written notice to the modgageholder at least: (a) 10 days before the effective date of cancellation if we cancel for your nonpayment of premium; or (b) 30 days before the effective date of cancellation if we cancel for any other reason. (7) If we elect not to renew this policy, we will give written notice to the mortgageholder at least 10 days before the expiration date of this policy. AIMUPR0004 3 2003 Page 22 of 23 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1994 ARCH INSURANCE COMPANY SECTION H -- DEFINITIONS "Pollutants" means any solid, liquid, gaseous or il' thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. 2. "Specified Causes of Loss" means the following: Fire; lightning; explosion; windstorm or hail; smoke; aircraft or vehicles; riot or civil commotion; vandalism; leakage from fire extinguishing equipment; sinkhole collapse; volcanic action; falling objects; weight of snow, ice or sleet; water damage. a. Sinkhole collapse means the sudden sinking or collapse of land into underground empty spaces created by the action of water on limestone or dolomite. This cause of loss does not include: (1) The cost of filling sinkholes; or (2) Sinking or collapse of land into man- made underground cavities. b. Falling objects does not include loss or damage to: (1) Personal property in the open; or (2) The interior of a building or structure, or property inside a building or structure, unless the roof or an oUtside wall of the building or structure is first damaged by a falling object. c. Water damage means accidental discharge or leakage of water or steam as the direct result of the breaking apart or cracking of any part of a system or appliance containing water or steam. 3. "Stock" means merchandise held in storage or for sale, raw materials and in-process or finished goods, including supplies used in their packing or shipping. AIMUPR0004 3 2003 Page 23 of 23 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1994 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DEDUCTIBLE AMENDATORY ENDORSEMENT This endorsement modifies insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM - EDUCATIONAL INSTITUTION BUILDING AND PERSONAL PROPERTY COVERAGE FORM - PUBLIC ENTITY The following is added to SECTION F. DEDUCTIBLE: In the event that loss or damage occurs as a result of one occurrence and the loss would require the application of more than one deductible, only the highest deductible will apply. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE ,, DATE AIMUPR0019 3 2003 ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCYAND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FUNGUS, WET ROT, DRY ROT AND BACTERIA ENDORSEMENT This endorsement modifies insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM -- PUBLIC ENTITY BUILDING AND PERSONAL PROPERTY COVERAGE FORM -- EDUCATIONAL INSTITUTION A. SECTION C - EXCLUSIONS is changed as follows: 1. The following EXCLUSION is added: "Fungus", Wet Rot, Dry Rot And Bacteria We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. Presence, growth, proliferation, spread or any activity of "fungus", wet or dry rot or bacteria. But if "fungus", wet or dry ret or bacteria results in a "specified cause of loss", we will pay for the loss or damage caused by that "specified cause of loss". This exclusion does not apply: a. When "fungus", wet or dry rot or bacteria results from fire or lightning; or b. To the extent that coverage is provided in the Additional Coverage Limited Coverage For "Fungus", Wet Rot, Dry Rot And Bacteria with respect to loss or damage by a cause of loss other than fire or lightning. This exclusion applies whether or not the loss event results in widespread damage or affects a substantial area. 2. Paragraph (2) of Exclusion 2.d. is deleted and replaced by the following: (2) Rust or other corrosion, decay, deterioration, hidden or latent defect or any quality in property that causes it to damage or destroy itself; 3. Exclusion 2.f. is deleted and replaced by the following: f. Continuous or repeated seepage or leakage of water, or the presence or condensation of humidity, moisture or vapor, that occurs over a period of 14 days or more. B. Changes in Coverage Extensions Paragraph (4) of Coverage Extension, Building Ordinance or Law, is deleted and replaced by the following: (4) Under this Coverage Extension, we will not pay for: (a) The enforcement of any ordinance or law which requires demolition, repair, replacement, reconstruction, remodeling or ramediation of properly due to contamination by "pollutants", asbestos, or lead; or due to the presence, growth, proliferation, spread or any activity of "fungus", wet or dry ret or bacteria; or AIMUPR0020 3 2003 Page 1 of 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 2001 ARCHINSURANCE COMPANY (b) Any costs associated with the enforcement of an ordinance or law which requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants", asbestos, lead, "fungus", wet or dry ret or bacteria. C. The following Additional Coverage is added: Additional Coverage - Limited Coverage For "Fungus", Wet Rot, Dry Rot And Bacteria 1. The coverage described in Paragraph 2. below only applies when the "fungus", wet or dry ret or bacteria is the result of one or more of the following causes that occurs during the policy pedod and only if all reasonable means were used to save and preserve the property from further damage at the time of and after that occurrence. a. A "specified cause of loss" other than fire or lightning; or b. Flood, if the Flood Coverage Endorsement applies to the affected premises. We will pay for loss or damage by "fungus", wet or dry rot or bacteria. As used in this Limited Coverage, the term loss or damage means: a. Direct physical 10Ss or damage to Covered Property caused by "fungus", wet or dry rot or bacteria, including the cost of removal of the "fungus", wet or dry rot or bacteria; b. The cost to tear out and replace any part of the building or other property as needed to gain access to the "fungus", wet or dry ret or bacteria; and c. The cost of testing performed after removal, repair, replacement or restoration of the damaged property is completed, provided there is a reason to believe that "fungus", wet or dry rot or bacteda are present. 3. The coverage described under Paragraph 2. of this Limited Coverage is limited to $15,000. Regardless of the number of claims, this limit is the most we will pay for the total of all loss or damage arising out of all occurrences of "specified causes of loss" (other than fire or lightning) and Flood which take place in a 12- month period (starting with the beginning of the present annual policy period). With respect to a particular occurrence of loss which results in "fungus", wet or dry rot or bacteria, we will not pay more than a total of $15,000 even if the "fungus", wet or dry rot or bacteria continues to be present or active, or recurs, in a later policy period. 4. The coverage provided under this Limited Coverage does not increase the applicable Limit of Insurance on any Covered Property. If a particular occurrence results in loss or damage by "fungus", wet or dry rot or bacteria, and other loss or damage, we will not pay more, for the total of all loss or damage, than the applicable Limit of Insurance on the affected Covered Property. If there is covered loss or damage to Covered Property, not caused by "fungus", wet or dry rot or bacteria, loss payment will not be limited by the terms of this Limited Coverage, except to the extent that "fungus", wet or dry rot or bacteria causes an increase in the loss. Any such increase in the loss will be subject to the terms of this Limited Coverage. 5. The terms of this Limited Coverage do not increase or reduce the coverage provided under Paragraph 4.e. 0Nater Damage, Other Liquids, Powder Or Molten Material Damage) of the Additional Coverages or under the Additional Coverage - Collapse. D. The following is added to the DEFINITIONS section: "Fungus" means any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents or by-products produced or released by fungi. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUPR0020 3 2003 Page 2 of 2 includes copyrighted matedal of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office Inc., 2001 IL 09 6'1 '1'1 02 THIS ENDORSEMENT CHANGES THE pOLIcY. PLEASE READ IT CAREFULLY. EXCLUSION OF CERTIFIED ACTS AND OTHER ACTS OF TERRORISM This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART COMMERCIAL CRIME COVERAGE FORM COMMERCIAL CRIME POLICY COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART EMPLOYEE THEFT AND FORGERY POLICY FARM COVERAGE PART GOVERNMENT CRIME COVERAGE FORM GOVERNMENT CRIME POLICY KIDNAP/RANSOM AND EXTORTION COVERAGE FORM KIDNAP/RANSOM AND EXTORTION POLICY STANDARD PROPERTY POLICY The following definitions are added with respect to the provisions of this endorsement: 1. "Certified act of terrorism" means an act that is certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism pursuant to the federal Terrorism Risk Insurance Act of 2002. The cri- teria contained in that Act for a "certified act of terrorism" include the following: a. The act resulted in aggregate losses in excess of $5 million; and b. The act is a violent act or an act that is dangerous to human life, property or infra- structure and is committed by an individual or individuals acting on behalf of any for- eign person or foreign interest, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. 2. "Other act of terrorism" means a violent act or an act that is dangerous to human life, prop- arty or infrastructure that is committed by an individual or individuals and that appears to be part of an effort to coerce a civilian population or to influence the policy or affect the conduct of any government by coercion, and the act is not certified as a terrorist act pursuant to the federal Terrorism Risk Insurance Act of 2002. B. The following exclusion is added: EXCLUSION OF CERTIFIED ACTS AND OTHER ACTS OF TERRORISM We will not pay for loss or damage caused directly or indirectly by a "certified act of terrorism" or an "other act of terrorism". Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. But with respect to an "other act of terrorism", this exclusion applies only when one or more of the following are attributed to such act: 1. The terrorism is carried out by means of the dispersal or application of pathogenic or poi- sonous biological or chemical materials; or 2. Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the terrorism was to release such materials; or IL 09 61 '1'1 02 © ISO Properties, Inc., 2002 Page '1 of 2 [] The total of insured damage to all types of property in the United States, its territories and possessions, Puerto Rico and Canada exceeds $25,000,000. In determining whether the $25,000,000 threshold is exceeded, we will in- clude all insured damage sustained by prop- erty of all persons and entities affected by the terrorism and business interruption losses sus- rained by owners or occupants of the damaged property. For the purpose of this provision, in- sured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the applica- tion of any terrorism exclusions. Multiple inci- dents of "other acts of terrorism" which occur within a 72-hour period and appear to be car- ded out in concert or to have a related purpose or common leadership will be deemed to be one incident. Co With respect to this Item B.3., the immediately preceding paragraph describes the threshold used to measure the magnitude of an "other act of ter- rorism" and the circumstances in which the threshold will apply, for the purpose of determin- lng whether this exclusion will apply to that inci- dent. When the exclusion applies to an "other act of terrorism", there is no coverage under this Coverage Part or Policy. Application Of Other Exclusions The terms and limitations of any terrorism exclu- sion, or the inapplicability or omission of a terror- ism exclusion, do not serve to create coverage for any loss which would otherwise be excluded under this Coverage Part or Policy, such as losses ex- cluded by the Nuclear Hazard Exclusion or the War And Military Action Exclusion. Page 2 of 2 © ISO Properties, Inc., 2002 iL 09 61 1'1 02 [] ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EARTHQUAKE COVERAGE ENDORSEMENT This endorsement modifies insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM -- EDUCATIONAL INSTITUTION BUILDING AND PERSONAL PROPERTY COVERAGE FORM -- PUBLIC ENTITY A. COVERED CAUSES OF LOSS When Earthquake is shown in the Declarations, Covered Causes of Loss includes the following: '1. Earthquake. 2. Volcanic Eruption, meaning direct loss or damage resulting from the eruption, explosion or effusion of a volcano when the loss or damage is caused by: ['"-" (a) Airborne volcanic blast or airborne shock ~ waves; (b) Ash, dust or particulate matter; or (c) Lava flow. Volcanic eruption does not include the cost to remove ash, dust or particulate matter that does not cause direct physical loss or damage to the described property. All Earthquake activity (including foreshocks and aftershocks) or Volcanic Eruptions that occur within any 168-hour period will constitute a single Earthquake or Volcanic Eruption, The expiration of this policy will not reduce the 168-hour period. B. EXCLUSIONS 1. Exclusion 1.b. Earth Movement of SECTION C - EXCLUSIONS is deleted in its entirety. 2. The following exclusions are added to SECTION C - EXCLUSIONS: a. We will not pay for loss or damage caused by or resulting from: (1) Fire, explosion (other than volcanic explosion), landslide, mine subsidence, tidal wave, flood, mudslide or mudflow, even if ~ attributable to an Earthquake or Volcanic Eruption. AIMUPR0002 3 2003 Page 1 of 2 But, {a) If earthquake results in fire or explosion, we will pay for the loss or damage caused by that fire or explosion as provided for under the Building and Personal Property Coverage Form; or (b) If volcanic eruption, explosion or effusion results in fire, we will pay for the loss or damage caused by that fire as provided for under the Building and Personal Property Coverage Form. (2) Any Earthquake or Volcanic Eruption that begins before the inception of this insurance. b. The following provisions apply to the Coverage Extension for Extra Expense and Business Income: We will not pay for: (1) Any increase of loss caused by or resulting from: (a) Delay in rebuilding, repairing or replacing the property or resuming "operations," due to interference at the location of the rebuilding, repair or replacement by strikers or other persons; or (b) Suspension, lapse or cancellation of any license, lease or contract. But if the suspension, lapse or cancellation is directly caused by the suspension of "operations," we will cover such loss that affects your Business Income during the "period of restoration." (2) Any Extra Expense caused by or resulting from suspension, lapse or Copyright, ISO Commercial Risk Services, Inc., 1994 ARCH INSURANCE COMPANY cancellation of any license, lease or contract beyond the "period of restoration." (3) Any other consequential loss. LIMITATION We will not pay for loss of or damage to exterior masonry veneer (except stucco) on wood frame walls caused by or resulting from Earthquake or Volcanic Eruption. The value of such veneer will not be included in the value of Covered Property or the amount of loss when applying: % The Deductible shown in the Declarations; or 2. The Additional Condition, Coinsurance, if applicable to the coverage provided by this endorsement. This limitation does not apply if: l. The premises description in the Declarations specifically states "Including Masonry Veneer'; or 2. Less than 10% of the total outside wall area is faced with masonry veneer (excluding stucco). DEDUCTIBLE The Deductible, if any, in the Building and Personal Property Coverage Form is replaced by the following with respect to Earthquake and Volcanic Eruption: '1. We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds the Deductible shown in the Declarations. We will then pay the amount of loss or damage in excess of that Deductible, up to the applicable Limit of Insurance, after any reduction required by any of the following: Coinsurance Condition or Agreed Value Optional Coverage. 2. The Deductible may be shown as either an amount or a percentage. When shown as a percentage, the Deductible is that percentage of the value of the Covered Property at the E. LIMITS time of the loss or damage. If the Covered Property is written on a Blanket Insurance basis, the value(s) to be used are those shown in the most recent Statement of Values on file with us. 3. A Deductible is calculated separately for and applies separately to: a. Each building, if two or more buildings sustain loss or damage; b. The building and pemonal property in that building, if both sustain loss or damage; c. Personal property at each building, if personal property at two or more buildings sustains loss or damage; Personal property in the open (or in a vehicle) within 1,000 feet of the described premises. OF INSURANCE The Limit of Insurance shown in the Declarations as Any One Earthquake is the most we will pay for loss or damage in any one Earthquake or any one Volcanic Eruption, regardless of the number of covered locations. 2. The Limit of Insurance shown in the Declarations as Annual Aggregate is the most we will pay for all claims for Earthquake or Volcanic Eruption damage which occurs during the policy period. If the policy period shown in the Declarations is for a term of more than one year, we will apply the Annual Aggregate Limit separately to each consecutive year of the policy period. 3. The following is added to SECTION E - LIMITS OF INSURANCE contained in the Building and Personal Property Coverage Form: Payments under the Earthquake or Volcanic Eruption Covered Causes of Loss will not increase the applicable Limit of Insurance. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE AIMUPR0002 3 2003 Page 2 of 2 Copyright, ISO Commercial Risk Services, ~nc., 1994 DATE ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FLOOD COVERAGEENDORSEMENT This endorsement modifies insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM -- EDUCATIONAL INSTITUTION BUILDING AND PERSONAL PROPERTY COVERAGE FORM -- PUBLIC ENTITY A. COVERED CAUSES OF LOSS When Flood is shown in the Declarations, Covered Causes of Loss includes the following: Flood means flood, surface water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not, and mudslide or mudflow caused by any of the foregoing. If flood results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage as provided for under the Building and Personal Property Coverage Form. EXCLUSIONS Exclusion 'l.g. Water of SECTION C EXCLUSIONS is deleted in its entirety. C. LIMITATIONS The following limitation is added: When a Limit of Insurance for Flood is shown in the Declarations, coverage provided by this endorsement does not apply to any location(s) situated in a "special flood coverage area" as determined by the Federal Emergency Management Agency (FEMA). These areas are currently designated by FEMA as zones A, AO, AH, Al-A30, A99, V, V1-V30. Any area later designated by FEMA as a %pecial flood coverage area" at the time of a Covered Cause of Loss is also subject to this limitation. Any area removed by FEMA from a "special flood coverage area" designated at the time of a Covered Cause of Loss is not subject to this limitation. DEDUCTIBLE The Deductible, if any, in the Building and Personal Property Coverage Form is replaced by the following with respect to Flood: We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds the Deductible shown in the Declarations. We will then pay the amount of loss or damage in excess of the Deductible up to the applicable Limit of Insurance---Any One Flood. LIMITS OF INSURANCE '1. The Limit of Insurance shown in the Declarations as Any One Flood is the most we will pay for loss or damage in any one Flood, regardless of the number of covered locations. 2. The Limit of Insurance shown in the Declarations as Annual Aggregate is the most we will pay for all claims for Flood damage which occurs during the policy period. If the policy pedod shown in the Declarations is for a term of more than one year, we will apply the Annual Aggregate Limit separately to each consecutive year of the policy period. 3. The following is added to SECTION E - LIMITS OF INSURANCE contained in the Building and Personal Property Coverage Form: Payments under the Flood Covered Causes of Loss will not increase the applicable Limit of Insurance. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUPR0003 3 2003 ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LOSS ADJUSTMENT ENDORSEMENT - COMMERCIAL PROPERTY COVERAGE This endorsement modifies insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM -- EDUCATIONAL INSTITUTION BUILDING AND PERSONAL PROPERTY COVERAGE FORM -- PUBLIC ENTITY This endorsement is intended to facilitate payment of insurance proceeds in the event of loss or damage to Covered Property from a loss that is covered by: 1. This Building and Personal Property coverage; and 2. Boiler and Machinery insurance; and there is a disagreement between the insudng companies as to the amount of the loss to be paid by each company. The provisions of item C. of this endorsement apply only if all of the following requirements are met: '1. The Boiler and Machinery insurance carried by the named insured, insuring the Covered Property, contains a provision with substantially the same requirements, procedures and conditions as contained in this endorsement. 2. The damage to the Covered Property was caused by a loss for which both we and the Boiler and Machinery insuring company(s) admit to some liability for payment under the respective policies. 3. The total amount of the loss is agreed to by you, us and the Boiler and Machinery insuring company(s). 4. We and the Boiler and Machinery insudng company(s) disagree as to the amount of loss that each of us should pay that is attributable to: a. A cause of loss covered under this Building and Personal Property coverage; and b. An "accident" covered under the Boiler and Machinery insurance. C. If the requirements listed in B. above are satisfied, we and the Boiler and Machinery insudng company(s) will make payments to the extent, and in the manner, described in the following: 1. We will pay, after your written request, the entire amount of loss that we have agreed as being covered by this Building and Personal Property coverage and one-half (I/2) the amount of loss that is in disagreement. 2. The Boiler and Machinery insuring company(s) will pay, after your written request, the entire amount of loss that they have agreed as being covered by the Boiler and Machinery insurance and one-half (1/2) the amount of loss that is in disagreement. 3. The amount in disagreement to be paid by us under this endorsement shall not exceed the amount payable under the equivalent Loss Adjustment Endorsement(s) of the Boiler and Machinery insuring company(s). 4. The amount to be paid under this endorsement shall not exceed the amount we would have paid had no Boiler and Machinery insurance been in effect at the time of loss. $. Acceptance by you of sums paid under this endorsement does not alter, waive or surrender any other rights against us. 6. ADDITIONAL CONDITIONS a. We and the Boiler and Machinery insuring company(s) agree to submit our differences to arbitration within 90 days after loss payment made under the terms of this endorsement. AIMUPR0008 3 2003 Page 1 of 2 Copyright, ISO Commercial Risk Services, inc., 1990 ARCH INSURANCE COMPANY You agree to cooperate with any arbitration procedures. There will be three arbitrators: one will be appointed by us, and another will be appointed by the Boiler and Machinery insuring company(s). The two arbitrators will select a third arbitrator, If they cannot agree, either may request that selection be made by a judge of a court having jurisdiction. A decision agreed to by two of the three arbitrators will be binding on both parties. Judgment on any award can be entered in any court that has jurisdiction. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE AIMUPR0008 3 2003 Page 2 of 2 Copyright, ISO Commercial Risk Services, inc., 1990 DATE ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE INSURED AGENCY AND CODE FORMING A PART OF (Standard time) POLICY NUMBER MO. DAY YR. 12.01 NOON KMPKG00071 05 14 2003 A.M. CITY OF JEFFERSONVILLE KC001 Coverage Extension [] Newly Acquired or Constructed Property [] Building i [] Your Business Personal Property THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. COVERAGE EXTENSIONS-INCREASED LIMITS This endorsement modifies insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM-PUBLIC ENTITY The most we will pay under the Coverage Extensions of SECTION A-COVERAGEis increased to the Limit of Insurance shown in the Schedule below if an "x" is entered in the box. SCHEDULE Limit Of Insurance $ 1,000,000 at each building $ 250,000 at each building [] Valuable Papers and Records-Cost of Research [] Property Off-Premises [] Personal Computers, EDP Equipment, Data or Media [] Accounts Receivable $ 250,000 $ 100,000 $ 250,000 $ $ $ 250,000 any one occurence any one occurence any one occurence subject to a maximum of: while in transit or on a vehicle; or is a laptop computer, including its portable accessories, owned by you that is used by your employees, elected or appointed officials, or volunteers at a location away from the described promises for loss or damage as a result of any of the items listed in paragraph (4) of Coverage Extension 5.g. any one occurence; subject to a maximum of: while in transit AIMUPR0014 (32003) Page 1 of 2 ARCH INSURANCE COMPANY [] Grounds Maintenance Equipment [] Extra Expense and Business Income [] Extra Expense [] Business Income [] Fine Arts [] Paved Surfaces [] Property in Transit [] Building Ordinance or Law [] Emergency Portable Equipment [] [] $ 100,000 $ 500,000 $ 100,000 $ 5,000 $ 25,000 $ 100,000 $ 25,000 $ 250,000 10% 483,080 any one occurence each described premises any one oocurence any one item any one occurence any one occurence any one occurence for loss to the undamaged portion of the building and/or demolition costs. of the value of that building (as shown on the most recent statement of values on file with us) for increased cost of construction as a result of an occurence. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUPR0014 (3 2003) Page 2 of 2 ARCH INSURANCE COMPANY CONTRACTOR'S EQUIPMENT SUPPLEMENTAL DECLARATIONS Supplemental Declarat ohs form a part of policy number KMPKG00071 LIMITS OF INSURANCE 1. COVERED PROPERTY a. Schedule of Property (See A.I. of this Coverage Form) DESCRIPTION OF PROPERTY Item No. ( Year, Name of Manufacturer, Type, Model, Serial Number ) Per Schedule on File Limit of Insurance 3~854~869 b. Blanket Miscellaneous Tools and Equipment No single item to exceed $ 5,000 in value c. Limit of Insurance for All Covered Property Total Scheduled Property $ $ $ 3~854~869 409~594 4~264~463 2. AMENDMENT TO COVERAGE EXTENSIONS (Applicable only for those Coverage Extensions where an increased limit of insurance is shown below) a. Additional Acquired Equipment, 25% of the Total Scheduled Property or $100,000, whichever is less, for any one item. (See section A.4.a. of the Coverage Form) Increased to $ Rental Expense Reimbursement, $2,500 of rental expenses in any one policy period. (See section A.4.b. of the Coverage Form) Increased to $ Debris Removal Expense, 10% of the amount we pay for the direct physical "loss" to Covered Property, or $5,000 for the sum of all debris removal expense occurring during each separate 12 month period of the policy, whichever is less. (See section A.4.d. of the Coverage Form) Increased to $ DEDUCTIBLE $ 500 RATE $ VARIOUS PREMIUM $ INCLUDED I_OSS PAYABLE TO YOU AND AS THEIR INTERESTS MAY APPEAR FORMS AND ENDORSEMENTS Forms and endorsements applying to this Coverage Part and made a part of this policy at time of issue: Refer to AIMUIL0002 (3-2003) /"'"'* i THIS SUPPLEMENTAL DECLARATIONS AND THE COMMON POLICY DECLARATIONS, TOGETHER WITH THE COMMON POLICY CONDITIONS, THE INLAND MARINE CONDITIONS, COVERAGE FORM(S) AND ENDORSEMENTS COMPLETE THE ABOVE NUMBERED POLICY. AIMUIM0009 (3 2003) INLAND MARINE ARCH INSURANCE COMPANY CONTRACTOR'S EQUIPMENT COVERAGE FORM Various provisiOns in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "you¢' refer to the Named Insured shown in the Declarations. The words "we," "us" and "our" refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to the DEFINITIONS section in this Coverage Form. A. COVERAGE We will pay for "loss" to Covered Property from any of the Covered Causes of Loss. I. Covered Property Covered Property means contractor's equipment as scheduled in the Declarations, which is: a. Your property; and b. Similar property of others for which you may be liable. 2. Property Not Covered Covered Property does not include: a. Automobiles, motor trucks, tractors, trailers or other vehicles designed and principally used for highway transportation; b. Aircraft orwatercraft; c. Pmpedywhile airborne; d. Property while waterborne except while in transit on ferries, lighters or carfloats; e. Property while located underground, in caissons or underwater; f. Tools and clothing of your employees; g. Contraband or property in the course of illegal transportation or trade; h. Blueprints, mechanical drawings, designs, tracings, specifications or other similar property; i. Property which has or is intended to become a permanent part of any structure; j. Building materials and supplies; or k. Crane booms or derrick booms, including any extensions, while being operated or used, unless "loss" is directly caused by fire, lightning, explosion, windstorm, theft or overturn of the machine of which it is a part. 3. Covered Causes Of Loss Covered Causes of Loss means RISKS OF DIRECT PHYSICAL "LOSS" to Covered Property except those causes of "loss" listed in the Exclusions. 4. Coverage Extensions a. Additionally Acquired Equipment If during the policy period you acquire additional equipment of a type already covered by this form, we will cover such equipment for up to 60 days but not beyond the end of the policy period. The most we will pay for "loss" to any one item is the lesser of: (1) 25% of the Total Scheduled Property shown in the Declarations; or (2) $100,000; unless an increased limit for any one item is shown in the Declarations. You will report such equipment to us within 60 days from the date acquired and will pay any additional premium due. If you do not report such equipment, coverage will cease automatically 60 days after the date the equipment is acquired, or at the end of the policy period, whichever occurs first. b. Rental Expense Reimbursement We will reimburse your rental expenses should a covered "loss" to equipment you own make it necessary to rent replacement equipment to continue your normal operations of the work in progress. We will reimburse these rental expenses provided you do not have equivalent idle equipment you can use and you restore or replace the lost or damaged equipment as soon as possible. Our reimbursement is limited to rental expenses incurred during the period of time beginning seventy-two (72) houm after the "loss" has occurred and AIMUiM0001 3 2003 Page I of 4 ARCHINSURANCECOMPANY continuing until the equipment has been restored, replaced, or is no longer needed, whichever occurs first. The period of reimbursement will not be limited by the policy expiration date. The most we will pay is $2,500 of your rental expenses in any one policy period for one or more items of equipment unless an increased limit is shown in the Declarations. Pollutant Clean Up and Removal (1) We will pay your expenses to extract "pollutants" from land or water if the release, discharge or dispersal of the "pollutants" is caused by or resutts from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the earlier of: (a) The date of direct physical "loss"; or (b) The end of the policy period. (2) The most we will pay under this Coverage Extension is $10,000 for the sum of all such expenses arising out of Covered Causes of Loss occurring during each separate 12 month pedod of this policy. Debris Removal Expense (1) We will pay your expenses to remove debris of Covered Property caused by or resulting from a Covered Cause of Loss that occurs dudng the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the earlier of: (a) The date of direct physical "loss"; or (b) The end of the policy period. (2) The most we will pay under this Coverage Extension is the lesser of the following: (a) 10 % of the amount we pay for the direct physical "loss" to Covered Prepedy; or (b) $5,000 for the sum of all debris removal expenses arising out of Covered Causes of Loss occurring during each separate 12 month period of this policy. (3) This Coverage Extension does not apply to costs to: (a) Extract ~pollutants' from land or water; or (b) Remove, restore or replace polluted land or water. B. EXCLUSIONS war; We will not pay for "loss" caused directly or indirectly by any of the following. Such "loss" is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the "loss." a. Governmental Action Seizure or destruction of property by order of governmental authority. But we will pay for loss or damage caused by or resulting from acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread, if the fire would be covered under this Coverage Form. b. Nuclear Hazard (1) Any weapon employing atomic fission or fusion; or (2) Nuclear reaction or radiation, or radioactive contamination from any other cause. But we will pay for direct "loss" caused by resulting fire if the fire would be covered under this Coverage Form. c. War and Military Action (1) War, including undeclared or civil (2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hindering or defending against any of these. AIMUIM0001 3 2003 Page 2 of 4 ARCH INSURANCE COMPANY d, Earth Movement Earthquake, volcanic eruption, explosion, effusion, earth sinking, earth rising or shifting, landslide or other earth movement. But we will pay for direct "loss" caused by resulting fire if the fire would otherwise be covered under this Coverage Form. e. "Flood" But we will pay for direct "loss" caused by resulting fire if the fire would otherwise be covered under this Coverage Form. 2. We will not pay for "loss" caused by or resulting from any of the following: a. Delay, loss of use, loss of market or any other consequential loss; b. Dishonest or criminal act committed by: (1) You, any of your partners, employees, directors, trustees, or authorized representatives; (2} Anyone else with an interest in the property, or their employees or authorized representatives; or (3) Anyone else to whom the property is entrusted for any purpose. This exclusion applies whether or not such persons are acting alone or in collusion with other persons or such acts occur during the hours of employment. This exclusion does not apply to Covered Property that is entrusted to others who are carriers for hire or to acts of destruction by your employees. But theft by employees is not covered. c. Unexplained disappearance; d. Shortage found upon taking inventory; e. The lifting of a Icad that exceeds the manufacturer's Icad chart specifications, or by any operation that stresses the machine beyond the manufacturer's suggested operational limitations; f. Explosion, rupture or bursting of any steam boiler, steam piping or pressure vessel owned, leased or operated by the Insured. But if explosion of steam boilers, steam pipes or pressure vessels results in fire or combustion explosion, we will pay for the loss or damage caused by that fire or combustion explosion; g. Artificially generated current creating a short circuit or other electrical disturbance within the Covered Property. But we will pay for direct "loss" caused by resulting fire or explosion. This exclusion only applies to "loss" to that article in which the disturbance OCCURS; h, Processing orwork upon the property. We will pay for direct "loss" caused by resulting fire or explosion, if these causes of "loss" would be covered under this Coverage Form; i. Voluntary parting with any property by you or anyone entrusted with the property if induced to do so by any fraudulent scheme, trick, device or false pretense; j. Unauthorized instructions to transfer property by any person otto any place; k. Discharge, dispersal, seepage, migration, release or escape of "pollutants" unless the discharge, dispersal, seepage, migration, release or escape is itself caused by any of the Covered Causes of Loss. But if the discharge, dispersal, seepage, migration, release or escape of "pollutants" results in a Covered Cause of Loss, we will pay for the "loss" caused by that Covered Cause of Loss. We will not pay for "loss" caused by or resulting from any of the following. But if "loss" by a Covered Cause of Loss results, we will pay for that resulting "loss." a. Weather conditions. But this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in paragraph '1. above to produce the ~loss"; b. Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body; c. Wear and tear, gradual deterioration, corrosion, rust, dryness or dampness of atmosphere, extremes or changes of temperature including freezing; d. Insects, vermin, rodents; e. Any quality in the property that causes it to damage or destroy itself, hidden or latent defect; f. Mechanical or electrical breakdown or failure; AIMUIM0001 3 2003 Page 3 of 4 ARCH INSURANCE COMPANY C. LIMITS Faulty, inadequate or defective: (1) Planning, zoning, development, surveying or siting; (2) Design, specification, workmanship, repair, construction, renovation, remodeling, grading, compaction; {3) Materials used in repair, construction, renovation or remodeling; or (4) Maintenance; of part or all of any property wherever located; Collapse of all or part of any building or structure. OF INSURANCE The most we will pay for "loss" in any one occurrence: 1. For one item of scheduled property is the Limit of Insurance for that item; 2. For more than one item of scheduled property is the total of the scheduled limits for those items up to the Limit of Insurance for All Covered Property; 3. For Coverage Extensions is the Limit of Insurance applicable to a Coverage Extension; as shown in the Declarations. D. DEDUCTIBLE We will not pay for "loss" in any one occurrence until the amount of the adjusted "loss" exceeds the deductible shown in the Declarations. We will then pay the amount of the adjusted "loss" in excess of the Deductible, up to the applicable Limit of Insurance. This condition does not apply to Rental Expense Reimbursement and Debris Removal Expense E. ADDITIONAL CONDITIONS The following conditions apply in addition to the Inland Marine Conditions and Common Policy Conditions: 1. Valuation The valuation condition contained in the Inland Marine Conditions is replaced by the following: The value of property will be the least of the following amounts: a. The actual cash value of that property; b. The cost of reasonably restoring that property to its condition immediately before "loss"; or c. The cost of replacing that property with substantially identical property. In the event of "loss," the value of property will be determined as of the time of "loss." However, we will not deduct depreciation on the adjustment of a partial "loss" to an item when the "loss" is less than twenty percent (20%) of the actual cash value of the item. Coinsurance All Covered Property must be insured for at least 90% of its actual cash value as of the time of "loss" oryou will incur a penalty. The penalty is that we will pay only the proportion of any "loss" that the applicable Limit of Insurance shown in the Declarations beam to 90% of the actual cash value of the Covered Property as of the time of "loss." If "loss" applies to two or more items, we have the option to apply Coinsurance to each item separately. F. DEFINITIONS 1. "Flood" means a temporary condition of partial or complete inundation of normally dry land areas as a result of: a. The overflow of inland ortidal waters; or b. The unusual and rapid accumulation or runoff of surface waters. "Flood" does not mean: a. Water which backs up through sewers or drains; b. Water below the surface of the ground; or c. Release of water impounded by a dam. 2. "Loss" means accidental loss or damage. 3. "Pollutants" means any Covered Property that becomes a solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. AIMUIM0001 3 2003 Page 4 of 4 ARCHINSURANCECOMPANY INLAND MARINE CONDITIONS ,The following conditions apply in addition to the Common Policy Conditions and applicable Additional Conditions in the Inland Marine Coverage Forms: LOSS CONDITIONS A. Abandonment There can be no abandonment of any property to US. B. Appraisal If we and you disagree on the value of the property or the amount of "loss," either may make written demand for an appraisal of the "loss." In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the value of the property and amount of "loss." If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: 1. Pay its chosen appraiser; and 2. Bear the other expenses of the appraisal and umpire equally. If there is an appraisal, we will still retain our right to deny the claim. C. Duties In The Event Of Loss You must see that the following are done in the event of "loss" to Covered Property: 1. Notify the police if a law may have been broken. 2. Give us prompt notice of the "loss." Include a description of the property involved. 3. As soon as possible, give us a description of how, when and where the "loss" occurred. 4. Take all reasonable steps to protect the Covered Property from further damage and keep a record of your expenses necessary to protect the Covered Property, for consideration in the settlement of the claim. This will not increase the Limit of Insurance. However, we will not pay for any subsequent "loss" resulting from a cause of loss that is not a Covered Cause of Loss. Also if feasible, set the damaged property aside and in the best possible order for examination. 5. Make no statement that will assume any obligation or admit any liability, for any "loss" for which we may be liable, without our consent. 6. Permit us to inspect the property and records proving "loss." 7. If requested, permit us to question you under oath, at such times as may be reasonably required, about any matter relating to this insurance or your claim, including your books and records. In such event, your answers must be signed. 8. Send us a signed, sworn statement of "loss" containing the information we request to settle the claim. You must do this within 60 days after our request. We will supply you with the necessary forms. 9. Promptly send us any legal papers or notices received concerning the "loss." 10. Cooperate with us in the investigation or settlement of the claim. Insurance Under Two Or More Coverages If two or more of this policy's coverages apply to the same "loss," we will not pay more than the actual amount of "loss." Loss Payment We will pay or make good any "loss" covered under this Coverage Part within 30 days after: '1. We reach agreement with you; 2. The entry of final judgment; or 3. The filing of an appraisal award. We will not be liable for any part of a "loss" that has been paid or made good by others. Other Insurance If you have other insurance covering the same "loss" as the insurance under this Coverage Part, we will pay only the excess over what you should have received from the other insurance. We will pay the excess whether you can collect on the other insurance or not. AIMUIM0015 3 2003 Page 1 of 2 Includes copyrighted material of ISO Risk Services, Inc., with its permission Copyright, ISO Commercial Risk Services, Inc., 1994 ARCH INSURANCE COMPANY G. Pair, Set Or Parts '1. Pair or Set. In case of"loss" to any part of a pair or set we may: a. Repair or replace any part to restore the pair or set to its value before the "loss"; or b. Pay the difference between the value of the pair or set before and after the "loss." 2. Parts. In case of "loss" to any part of Covered Property consisting of several parts when complete, we will only pay for the value of the lost or damaged part. H. Privilege To Adjust With Owner In the event of "loss" involving property of others in your care, custody or control, we have the right tO: 1. Settle the "loss" with the owners of the property. A receipt for payment from the owners of that property will satisfy any claim of yours. 2. Provide a defense for legal proceedings brought against you. If provided, the expense of this defense will be at our cost and will not reduce the applicable Limit of Insurance under this insurance. I. Recoveries Any recovery or salvage on a "loss" will accrue entirely to our benefit until the sum paid by us has been made up. J, Reinstatement Of Limit After Loss The Limit of Insurance will not be reduced by the payment of any claim, except for total "loss" of a scheduled item, in which event we will refund the unearned premium on that item. K. Transfer Of Rights Of Recovery Against Others To Us If any person or organization to or for whom we make payment under this insurance has rights to recover damages from another, those rights are transferred to us to the extent of our payment. That person or organization must do everything necessary to secure our rights and must do nothing after "loss" to impair them. GENERAL CONDITIONS A. Concealment, Misrepresentation Or Fraud This Coverage Part is void in any case of fraud, intentional concealment or misrepresentation of a material fact, by you or any other insured, at any time concerning: '1. This Coverage Part; 2. The Covered Property; 3. Your interest in the Covered Property; or 4. A claim under this Coverage Part. B. Legal Action Against Us No one may bring a legal action against us under this Coverage Part unless: '1. There has been full compliance with all the terms of the Coverage Part; and 2. The action is brought within 2 years after you first have knowledge of the "loss." C. No Benefit To Bailee No person or organization, other than you, having custody of Covered Property, will benefit from this insurance. D, Policy Period We cover "loss" commencing during the policy period shown in the Declarations. E. Coverage Territory We cover property wherever located within: The United States of America (including its territories and possessions); 2. Puerto Rico; and 3. Canada. F. Valuation The value of property will be the least of the following amounts: 1. The actual cash value of that property; 2. The cost of reasonably restoring that property to its condition immediately before "loss"; or 3. The cost of replacing that property with substantially identical property. In the event of "loss," the value of property will be determined as of the time of "loss." AIMUIM0015 3 2003 Page 2 of 2 Includes copyrighted material of ISO Risk Services, Inc., with its permission Copyright, ISO Commercial Risk Services, Inc., 1994 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DEDUCTIBLE AMENDATORY ENDORSEMENT This endorsement modifies insurance provided under the following: INLAND MARINE COVERAGE The following is added to the DEDUCTIBLE section of the policy: In the event that "loss" occurs as a result of one occurrence and the "loss" would require the application of more than one deductible, only the highest deductible will apply. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUIM0020 3 2003 IL 09 61 11 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION OF CERTIFIED ACTS AND OTHER ACTS OF TERRORISM This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART COMMERCIAL CRIME COVERAGE FORM COMMERCIAL CRIME POLICY COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART EMPLOYEE THEFT AND FORGERY POLICY FARM COVERAGE PART GOVERNMENT CRIME COVERAGE FORM GOVERNMENT CRIME POLICY KIDNAP/RANSOM AND EXTORTION COVERAGE FORM KIDNAP/RANSOM AND EXTORTION POLICY STANDARD PROPERTY POLICY The following definitions are added with respect to the provisions of this endorsement: 1. "Certified act of terrorism" means an act that is certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism pursuant to the federal Terrorism Risk Insurance Act of 2002. The cfi- teria contained in that Act for a "certified act of terrorism" include the following: a, The act resulted in aggregate losses in excess of $5 million; and b. The act is a violent act or an act that is dangerous to human life, property or infra- structure and is committed by an individual or individuals acting on behalf of any for- eign person or foreign interest, as part of an effod to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. 2. "Other act of terrorism" means a violent act or an act that is dangerous to human life, prop- erty or infrastructure that is committed by an individual or individuals and that appears to be part of an effort to coerce a civilian population or to influence the policy or affect the conduct of any government by coercion, and the act is not certified as a terrorist act pursuant to the federal Terrorism Risk Insurance Act of 2002. The following exclusion is added: EXCLUSION OF CERTIFIED ACTS AND OTHER ACTS OF TERRORISM We will not pay for loss or damage caused directly or indirectly by a "certified act of terrorism" or an "other act of terrorism". Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. But with respect to an "other act of terrorism", this exclusion applies only when one or more of the following are attributed to such act: 1. The terrorism is carried out by means of the dispersal or application of pathogenic or poi- sonous biological or chemical materials; or 2. Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the terrorism was to release such materials; or IL 09 61 11 02 © ISO Properties, Inc., 2002 Page I of 2 [] The total of insured damage to all types of property in the United States, its territories and possessions, Puerto Rico and Canada exceeds $25,000,000. In determining whether the $25,000,000 threshold is exceeded, we will in- clude all insured damage sustained by prop- erty of all persons and entities affected by the terrorism and business interruption losses sus- tained by owners or occupants of the damaged property. For the purpose of this provision, in- sured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the applica- tion of any terrorism exclusions. Multiple inci- dents of "other acts of terrorism" which occur within a 72-hour period and appear to be car- tied out in concert or to have a related purpose or common leadership will be deemed to be one incident. With respect to this Item B.3., the immediately preceding paragraph describes the threshold used to measure the magnitude of an "other act of ter- rorism" and the circumstances in which the threshold will apply, for the purpose of determin- ing whether this exclusion will apply to that inci- dent. When the exclusion applies to an "other act of terrorism", there is no coverage under this Coverage Part or Policy. Application Of Other Exclusions The terms and limitations of any terrorism exclu- sion, or the inapplicability or omission of a terror- ism exclusion, do not serve to create coverage for any loss which would otherwise be excluded under this Coverage Part or Policy, such as losses ex- cluded by the Nuclear Hazard Exclusion or the War And Military Action Exclusion. Page 2 of 2 © ISO Properties, tnc., 2002 IL 09 61 11 02 [] INLAND MARINE ARCH INSURANCE COMPANY MISCELLANEOUS ARTICLES COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we," "us" and "our" refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to the DEFINITIONS section in this Coverage Form. A. COVERAGE We will pay for "loss" to Covered Property from any of the Covered Causes of Loss. '1. Covered Property Covered Property means the property described in the Declarations. 2. Property Not Covered Covered Property does not include: a. Accounts, bills, precious stones, currency, deeds, evidences of debt, money, notes, securities, plans, blueprints, designs, specifications, or valuable papers; b. Animals; c. Vehicles designed for highway use, snowmobiles, all terrain vehicles; d. Aircraft; e. Watercraft; or f. Contraband or property in the course of illegal transportation or trade. 2. Covered Causes Of Loss Covered Causes of Loss means RISKS OF DIRECT PHYSICAL "LOSS" to Covered Property except those causes of "loss" listed in the Exclusions. 3, Coverage Extensions a, Pollutant Clean Up and Removal ('1) We will pay your expenses to extract "pollutants" from land or water if the release, discharge or dispersal of the "pollutants" is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in wdting within 180 days of the earlier of: (a) The date of direct physical "loss"; or (b) The end of the policy period. (2) The most we will pay under this Coverage Extension is $10,000 for the sum of all such expenses arising out of Covered Causes of Loss occurring during each separate 12 month period of this policy. b. Debris Removal Expense (l) We will pay your expenses to remove debris of Covered Property caused by or resulting from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the earlier of: (a) The date of direct physical "loss"; or (b) The end of the policy period. (2) The most we will pay under this Coverage Extension is the lesser of the following: (a) 10 % of the amount we pay for the direct physical "loss" to Covered Property; or (b) $5,000 for the sum of ail debris removal expenses arising out of Covered Causes of Loss occurring during each separate 12 month period of this policy. (3) This Coverage Extension does not apply to costs to: (a) Extract "pollutants" from land or water; or (b) Remove, restore or replace polluted land or water. AIMUIM0002 3 2003 Page 1 of 3 ARCH INSURANCE COMPANY B. EXCLUSIONS '1. We will not pay for "loss" caused directly or indirectly by any of the following. Such "loss" is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the "loss." a. Governmental Action Seizure or destruction of property by order of governmental authority. But we will pay for loss or damage caused by or resulting from acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread, if the fire would be covered under this Coverage Form. b, Nuclear Hazard (1) Any weapon employing atomic fission or fusion; or (2) Nuclear reaction or radiation, or radioactive contamination from any other cause. But, we will pay for direct "loss" caused by resulting fire if the fire would be covered under this Coverage Form. c. WarAnd Military Action (1) War, including undeclared or civil war; (2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hindering or defending against any of these. d. Earth Movement Earthquake, volcanic eruption, explosion, effusion, earth sinking, earth rising or shifting, landslide or other earth movement. But we will pay for direct "loss" caused by resulting fire if the fire would otherwise be covered under this Coverage Form. e. "Flood" But we will pay for direct "loss" caused by resulting fire if the fire would otherwise be covered under this Coverage Form. We wilt not pay for "loss~ caused by or resulting from any of the following: a. Wear and tear, gradual deterioration, depreciation, delay, loss of market or use; b. Hidden or latent defect, or any quality in the property that causes it to damage or destroy itself; c. Mechanical or electrical breakdown; d. Insects, vermin, rodents; e. Corrosion, rust, dampness, or changes in or extremes of temperatures; f. Unexplained disappearance; g. Shortage found upon taking inventory; h. Dishonest or criminal acts committed by: (1) You, any of your partners, employees, directors, trustees, or authorized representatives; (2} Anyone else with an interest in the property, or their employees or authorized representatives; or (3) Anyone else to whom the property is entrusted for any purpose. This exclusion applies whether or not such persons are acting alone or in collusion with other persons or such acts occur during the hours of employment. This exclusion does not apply to Covered Property that is entrusted to others who are carriers for hire or to acts of destruction by your employees. But "theft' by employees is not covered; i. Processing or work upon the property. We will pay for direct "loss' caused by resulting fire or explosion, if these causes of "loss' would be covered under this Coverage Form; j. Artificially generated current creating a short circuit or other electric disturbance within the Covered Property. But we will pay for direct "loss" caused by resulting fire or explosion. This exclusion only applies to "loss" to that article in which the disturbance occurs; k. Voluntary parting with any property by you or anyone entrusted with the property if induced to do so by any fraudulent scheme, trick, device or false pretense; AIMUIM0002 3 2003 Page 2 of 3 ARCHINSURANCE COMPANY I. "Theft" or pilferage of the Covered Property while left unattended in any vehicle unless: (1) The vehicle is equipped With a fully enclosed body or compartment; and (2) The "loss" is the direct result of violent forcible entry of which there shall be visible evidence. 3. We will not pay for "loss" caused by or resulting from any of the following. But if "loss" by a Covered Cause of Loss results, we will pay for that resulting "loss." a. Weather conditions. But, this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in paragraph l. above to produce the "loss"; b. Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body; c. Faulty, inadequate ordefective: ('1) Planning, zoning, development, surveying, siting; (2) Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction; (3) Materials used in repair, construction, renovation or remodeling; or (4) Maintenance; of part or all of any property wherever located; d. Collapse of all or part of a building or structure. C. LIMITS OF INSURANCE The most we will pay for "loss" in any one occurrence is the applicable Limit of Insurance shown in the Declarations. DEDUCTIBLE We will not pay for "loss" in any one occurrence until the amount of the adjusted "loss" exceeds the Deductible shown in the Declarations. We will then pay the amount of the adjusted "loss" in excess of the Deductible, up to the applicable Limit of Insurance. DEFINITIONS 1. "Flood" means a temporary condition of partial or complete inundation of normally dry land areas as a result of: a. The overflow of inland or tidal waters; or b. The unusual and rapid accumulation or runoff of surface waters. "Flood" does not mean: a. Water which backs up through sewers or drains; b. Water belowthe surface of the ground; or c. Release of water impounded by a dam. ~Loss" means accidental loss or damage. "Pollutants" means any Covered Property that becomes a solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. "Theft" means the taking of Covered Property by stealth, or the "loss" of the Covered Property under circumstances where the probability of theft exists. Theft does not mean mysterious or unexplained disappearance of property. AIMUIM0002 3 2003 Page 3 of 3 ARCHINSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) iNSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THISENDORSEMENTCHANGESTHEPOLICY. PLEASE READITCAREFULLY. REPLACEMENT COSTCOVERAGE Thisendomementmodifiesinsumnceprovidedunderthefollowing: CONTRACTOR'S EQUIPMENT COVERAGE FORM Section E. ADDITIONAL CONDITIONS is deleted in its entirety and replaced by the following: E. ADDITIONAL CONDITIONS The following conditions apply in addition to the Inland Marine Conditions and Common Policy Conditions: '1. Valuation The valuation condition contained in the Inland Marine Conditions is replaced by the following: a. You may make a claim for "loss" covered by this insurance on an actual cash value basis instead of on a replacement cost basis. In the event you elect to have "loss" settled on an actual cash value basis, you may still make a claim for the additional coverage this replacement cost provision provides if you notify us of your intent to do so within 180 days after the "loss". b. We will not pay on a replacement cost basis for any "loss": (1) Until the lost or damaged property is actually repaired or replaced; and (2) Unless the repairs or replacement are made as soon as reasonably possible after the "loss". c. The value of property will be the least of the following amounts: ('1) The Limit of Insurance applicable to the item(s) involved in the "loss"; or (2) The cost to repair or replace the damaged or destroyed property, or any part thereof, with materials of like kind and quality, without deduction for depreciation; or (3) The amount you actually spend that is necessary to repair or replace the lost or damaged property. You may substitute property of a different kind or quality, but we will not pay more than what it would cost to replace the damaged or destroyed property with substantially identical property. Coinsurance All Covered Property must be insured for at least 90% of its replacement cost value as of the time of "loss" or you will incur a penalty. The penalty is that we will pay only the proportion of any "loss" that the applicable Limit of Insurance shown in the Declarations bears to 90% of the replacement cost value of the Covered Property as of the time of "loss." If a "loss" applies to two or more items, we have the option to apply Coinsurance to each item separately. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUIM0007 3 2003 CRIME / BONDS ARCH INSURANCE COMPANY CRIME COVERAGE PART SUPPLEMENTAL DECLARATIONS These Supplemental Declarations form a part of policy number KMPKG00071 SCHEDULE OF COVERAGES, LIMITS OF INSURANCE AND DEDUCTIBLE Insurance is only provided for the coverages indicated by an X. Coverage Form(s) Limit of Insurance [] Deductible [] Self-Insured Retention [] A [] A [] B [] C D [] 0 [] P Employee Dishonesty - Blanket Employee Dishonesty - Schedule Forgery or Alteration Theft, Disappearance and Destruction Inside Outside Tax Time Increase 12/1 - 3/1 Optional Tax Periods: From: 01/01/00 From: 01/01/00 Robbery and safe Burglary - Property Other Than Money And Securities Public Employee Dishonesty - Per Loss Public Employee Dishonesty - Per Employee Robbery and safe Burglary - Inside Money and Securities Outside Computer Fraud To: 01/01/00 To: 01/01/00 Robbery Inside Safe Burglary Robbery $ $ See form CE 25001a $ $ $ 25,000 $250 $ 25,000 $ $ 25,000 $ $ $ $ $ $ $ $ $ $ 50,000 $250 $ $ $ $ $ $ $ See form CE 25001a CANCELLATION OF PRIOR INSURANCE: By acceptance of this Coverage Part you give us notice cancelling prior policy or bond numbers the cancellation to be effective at the time this Coverage Part becomes effective. FORMS AND ENDORSEMENTS forms and endorsements applying to this Coverage Part and made part of this policy at time of issue: See AIMUIL0002 (3 2003) Premium: $ INCL. THIS SUPPLEMENTAL DECLARATIONS AND THE COMMON POLICY DECLARATIONS, TOGETHER WITH THE COMMON POLICY CONDITIONS, THE CRIME GENERAL PROVISIONS, COVERAGE FORM(S) AND ENDORSEMENT COMPLETE THE ABOVE NUMBERED POLICY. AIMUCR0002 (3 2003) ARCH INSURANCE COMPANY CRIME GENERAL PROVISIONS LOSS SUSTAINED FORM Various provisions in this policy restdct coverage. Read the entire policy carefully to determine rights, duties and what is or is not covered. Throughout this policy, the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "ou¢' refer to the Company providing this insurance. Words and phrases in quotation marks are defined in the policy. Unless stated otherwise in any Crime Coverage Form, Declarations or endorsement, the following General Exclusions, General Conditions and General Definitions apply to all Crime Coverage Forms forming part of this policy. GENERAL EXCLUSIONS We will not pay for loss as specified below: Acts Committed by You or Your Partners Loss resulting from any dishonest or criminal act committed by your or any of your partners whether acting alone or in collusion with other persons. Governmental Action Loss resulting from seizure or destruction of property by order of governmental authority. Indirect Loss Loss that is an indirect result of any act or "occurrence" covered by this insurance including, but not limited to loss resulting from: '1. Your inability to realize income that you would have realized had there been no loss of, or loss from damage to Covered Property. 2. Payment of damages of any type for which you are legally liable. But, we will pay compensatory damages arising directly from a loss covered under this insurance. 3. Payment of costs, fees or other expenses you incur in establishing either the existence or the amount of loss under this insurance. Legal Expenses Expenses related to any legal action. Nuclear Loss resulting from nuclear reaction, nuclear radiation or radioactive contamination, or any related act or incident. War And Military Action Loss or damage caused directly or indirectly by the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. 1. War, including undeclared or civil war; or 2. Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or 3. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these. With respect to any action that comes within the terms of this exclusion and involves nuclear reaction or radiation, or radioactive contamination, this War And Military Action Exclusion supersedes the Nuclear Exclusion. GENERAL CONDITIONS Concealment, Misrepresentation or Fraud This insurance is void in any case of fraud by you as it relates to this insurance at any time. It is also void if you or any other insured, at any time, intentionally conceal or misrepresent a material fact concerning: l. This insurance; 2. The Covered Property; 3. Your interest in the Covered Property; or 4. A claim under this insurance. AIMUCR0003 3 2003 Page 1 of 5 Includes copyrighted material of Insurance Services Office, Inc., with its permission Copyright, Insurance Services Office, Inc., 2001 ARCHINSURANCE COMPANY Consolidation - Merger ~ ; f through conso dat on or merger with, or purchase · i or acquisition of assets or liabilities of, some other entity: l. Any additional persons become "employees"; or 2. You acquire the use and control of any additional "premises"; any insurance afforded for "employees" or "promises" also applies to those additional "employees" and "premises," for a period of 60 days after the effective date of such consolidation, merger, or purchase or acquisition of assets or liabilities. You must give us written notice within this 60 day period and obtain our written consent to extend this insurance to such additional "employees" or "premises". Upon obtaining our written consent, you must pay us an additional premium. If you fail to notify us in writing within this 60 day period, then this insurance shall automatically terminate as to such additional ~employees" or ~premises". Coverage Extensions Unless stated otherwise in the Coverage Form, our liability under any Coverage Extension is part of, not in addition to, the Limit Of Insurance applying to the ~f"--' Coverage or Coverage Section. Duties in the Event of Loss After you discover a loss or a situation that may result in loss of, or loss from damage to, Covered Property you must: I. Notify us as soon as possible. 2. Submit to examination under oath at our roquest and give us a signed statement of your answers. 3. Give us a detailed, sworn proof of loss within 120 days. 4, Cooperate with us in the investigation and settlement of any claim. Extended Period To Discover Loss We will pay only for covered loss discovered no later than one year from the end of the policy period. Joint Insured 1. If more than one Insured is named in the Declarations, the first named Insurod will act for itself and for every other Insured for all purposes of this insurance. If the first named Insurod ceases to be covered, then the next named Insurod will become the first named Insurod. 2. If any Insured or partner or officer of that Insurod has knowledge of any information rolevant to this insurance, that knowledge is considered knowledge of every Insured. 3. An "employee" of any Insured is considerod to be an "employee" of every insured. 4. If this insurance or any of its coverages is cancelled or terminated as to any Insurod, loss sustained by that Insured is covered only if discovered no later than one year from the date of that cancellation or termination. 5. We will not pay more for loss sustained by moro than one Insured than the amount we would pay if all the loss had been sustained by one Insurod. Legal Action Against Us You may not bdng any legal action against us involving loss: '1. Unless you have complied with all the terms of this insurance; and 2. Until 90 days after you have filed proof of loss with us; and 3. Unless brought within 2 years from the date you discover the loss. Liberalization If we adopt any revision that would broaden the coverage under this insurance without additional premium within 45 days prior to or during the policy pedod, the broadened coverage will immediately apply to this insurance. Loss Coverod Under More Than One Coverage of This Insurance If two or more coverages of this insurance apply to the same loss, we will pay the lesser of: '1. The actual amount of loss; or 2. The sum of the limits of insurance applicable to those coverages. AIMUCR0003 3 2003 Page 2 of 5 Includes copyrighted material of Insurance Services Office, inc., with its permission Copyright, insurance Services Office, Inc., 2001 ARCH INSURANCE COMPANY Loss Sustained During Prior Insurance '1. If you, or any predecessor in interest, sustained loss during the period of any prior insurance that you or the predecessor in interest could have recovered under that insurance except that the time within which to discover loss had expired, we will pay for it under this insurance, provided: a. This insurance became effective at the time of cancellation or termination of the prior insurance; and b. The loss would have been covered by this insurance had it been in effect when the acts or events causing the loss were committed or occurred. 2. The insurance under this Condition is part of, not in addition to, the Limits of Insurance applying to this insurance and is limited to the lesser of the amount recoverable under: a. This insurance as of its effective date; or b. The prior insurance had it remained in effect. Loss Covered Under This Insurance and Prior Insurance Issued by Us or Any Affiliate If any loss is covered: 1. Partly by this insurance; and 2. Partly by any prior cancelled or terminated insurance that we or any affiliate had issued to you or any predecessor in interest; the most we will pay is the larger of the amount recoverable under this insurance or the prior insurance. Regardless of the number of years this insurance remains in force or the number of premiums paid, no Limit Of Insurance cumulates from year to year or period to period. Other Insurance This insurance does not apply to loss recoverable or recovered under other insurance or indemnity. However, if the limit of the other insurance or indemnity is insufficient to cover the entire amount of the loss, this insurance will apply to that part of the loss, other than that falling within any deductible amount, not recoverable or recovered under the other insurance or indemnity. However, this insurance will not apply to the amount of loss that is more than the applicable Limit Of Insurance shown in the Declarations. Ownership of Property; Interests Covered The property covered under this insurance is limited to property: 1. That you own or hold; or 2. For which you are legally liable. However, this insurance is for your benefit only. It provides no rights or benefits to any other person or organization. Policy Period 1. The Policy Period is shown in the Declarations. 2. Subject to the Loss Sustained During Prior Insurance condition, we will pay only for loss that you sustain through acts committed or events occurring dudng the Policy Period. Records You must keep records of all Covered Property so we can verify the amount of any loss. Recoveries ~1. Any recoveries, less the cost of obtaining them, made after settlement of loss covered by this insurance will be distributed as follows: a. To you, until you are reimbursed for any loss that you sustain that exceeds the Limit of Insurance and the Deductible Amount, if any; b. Then to us, until we are reimbursed for the settlement made; c. Then to you, until you are reimbursed for that pad of the loss equal to the Deductible Amount, if any. 2. Recoveries do not include any recovery: a. From insurance, suretyship, reinsurance, security or indemnity taken for our benefit; or b. Of original "securities" after duplicates of them have been issued. Territory This insurance covers only acts committed or events occurring within the United States of America, U. S. Virgin Islands, Puerto Rico, Canal Zone, or Canada. AIMUCR0003 3 2003 Page 3 of 5 Includes copyrighted material of Insurance Services Office, [nc., with its permission Copyright, Insurance Services Office, inc., 2001 ARCH INSURANCE COMPANY Transfer of Your Rights of Recovery Against Others to Us ~You must transfer to us all your rights of recovery against any person or organization for any loss you sustained and for which we have paid or settled. You must also do everything necessary to secure those rights and do nothing after loss to impair them. Valuation - Settlement 1. Subject to the applicable Limit of Insurance provision we will pay for: a. Loss of "money" but only up to and including its face value. We may, at our option, pay for loss of "money" issued by any country other than the United States of America: (1)At face value in the "money" issued by that country; or (2) In the United States of America dollar equivalent determined by the rate of exchange on the day the loss was discovered. b. Loss of "securities" but only up to and including their value at the close of business on the day the loss was discovered. We may, at our option: (1) Pay the value of such "securities" or replace them in kind, in which event you must assign to us all your dghts, title and interest in and to those "securities"; or (2) Pay the cost of any Lost Securities Bond required in connection with issuing duplicates of the "securities," However, we will be liable only for the payment of so much of the cost of the bond as would be charged for a bond having a penalty not exceeding the lesser of the: (a)Value of the "securities" at the close of business on the day the loss was discovered; or (b} Limit of Insurance. c. Loss of, or loss from damage to, ~property other than money and securities" or loss from damage to the "premises" for not more than the: (1) Actual cash value of the property on the day the loss was discovered; (2) Cost of repairing the property or ~premises"; or (3) Cost of replacing the property with property of like kind and quality. We may, at our option, pay the actual cash value of the property or repair or replace it. If we cannot agree with you upon the actual cash value or the cost of repair or replacement, the value or cost will be determined by arbitration. 2. We may, at our option, pay for loss of, or loss from damage to, property other than "money": a. In the "money" of the country in which the loss occurred; or b. In the United States of America dollar equivalent of the "money" of the country in which the loss occurred determined by the rate of exchange on the day the loss was discovered. 3. Any property that we pay for or replace becomes our property. GENERAL DEFINITIONS 1. "Employee" means: a. Any natural person: (1)While in your service (and for 90 days after termination of service); and (2) Whom you compensate directly by salary, wages or commissions; and (3)Whom you have the right to direct and control while performing services for you; or b. Any natural person who is furnished to you to: ('l) Substitute for a permanent ~emptoyee" on leave; or (2)Meet seasonal or short-term work load conditions; while that person is subject to your direction and control and performing services for you, excluding, however, any such person while having care and custody of property outside the "premises". AIMUCR0003 3 2003 Page 4 of 5 Includes copyrighted material of Insurance Services Office, Inc., with its permission Copyright, Insurance Services Office, Inc., 2001 ARCH INSURANCE COMPANY But "employee" does not mean any: ('l)Agent, broker, person leased to you by a labor leasing firm, factor, commission merchant, consignee, independent contractor or representative of the same general character; or (2) Director or trustee except while performing acts coming within the scope of the usual duties of an employee. 2. "Money" means: a. Currency, coins and bank notes in current use and having a face value; and b. Travelers checks, register checks and money orders held for sale to the public. "Property Other Than Money and Securities" means any tangible property other than "money" and "securities" that has intrinsic value but does not include any property listed in any Crime Coverage Form as Property Not Covered. "Securities" means negotiable and non- negotiable instruments or contracts representing either "money" or other property and includes: a. Tokens, tickets, revenue and other stamps (whether represented by actual stamps or unused value in a meter) in current use; and b. Evidences of debt issued in connection with credit or charge cards, which cards are not issued by you; but does not include "money". AIMUCR0003 3 2003 Page 5 of 5 Includes copyrighted material of Insurance Services Office, Inc., with its permission Copyright, Insurance Services Office, Inc., 2001 IL0961 11 02 THIS ENDORSEMENT CHANGES THE POLICy. PLEASE READ IT CAREFULLY. EXCLUSION OF CERTIFIED ACTS AND OTHER ACTS OF TERRORISM This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART COMMERCIAL CRIME COVERAGE FORM COMMERCIAL CRIME POLICY COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART EMPLOYEE THEFT AN[:) FORGERY POLICY FARM COVERAGE PART GOVERNMENT CRIME COVERAGE FORM GOVERNMENT CRIME POLICY KIDNAP/RANSOM AND EXTORTION COVERAGE FORM KIDNAP/RANSOM AND EXTORTION POLICY STANDARD PROPERTY POLICY The following definitions arc added with rcspect to the prcvisions of this endorsement: '1. "Certified act of terrorism" means an act that is certified by the Secrctary of the Trcasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism pursuant to the federal Terrorism Risk Insurance Act of 2002. The cri- teria contained in that Act for a "certified act of terrorism" include the following: a. The act resulted in aggregate losses in excess of $5 million; and b. The act is a violent act or an act that is dangerous to human life, property or infra- structure and is committed by an individual or individuals acting on behalf of any for- eign person or foreign interest, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. 2. "Other act of terrorism" means a violent act or an act that is dangerous to human life, prop- erty or infrastructure that is committed by an individual or individuals and that appears to be part of an effort to coerce a civilian population or to influence the policy or affect the conduct of any government by coercion, and the act is not certified as a terrorist act pursuant to the federal Terrorism Risk Insurance Act of 2002. The following exclusion is added: EXCLUSION OF CERTIFIED ACTS AND OTHER ACTS OF TERRORISM We will not pay for loss or damage caused dircctly or indirectly by a "certified act of terrorism" or an "other act of terrorism". Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. But with respect to an "other act of terrorism", this exclusion applies only when one or more of the following are attributed to such act: '1. The terrorism is carried out by means of the dispersal or application of pathogenic or poi- sonous biological or chemical materials; or 2. Pathogenic or poisonous biological or chemical materials arc rcleased, and it appears that one purpose of the terrorism was to release such materials; or IL 09 61 ll 02 © ISO Properties, Inc., 2002 Page '1 of 2 [] The total of insured damage to all types of property in the United States, its territories and possessions, Puerto Rico and Canada exceeds $25,000,000. In determining whether the $25,000,000 threshold is exceeded, we will in- clude all insured damage sustained by prop- erty of all persons and entities affected by the terrorism and business interruption losses sus- rained by owners or occupants of the damaged property. For the purpose of this provision, in- sured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the applica- tion of any terrorism exclusions. Multiple inci- dents of "other acts of terrorism" which occur within a 72-hour period and appear to be car- tied out in concert or to have a related purpose or common leadership will be deemed to be one incident. With respect to this Item B.3., the immediately preceding paragraph describes the threshold used to measure the magnitude of an "other act of ter- rorism'' and the circumstances in which the threshold will apply, for the purpose of determin- lng whether this exclusion will apply to that inci- dent. When the exclusion applies to an "other act of terrorism", there is no coverage under this Coverage Part or Policy. Application Of Other Exclusions The terms and limitations of any terrorism exclu- sion, or the inapplicability or omission of a terror- ism exclusion, do not serve to create coverage for any loss which would otherwise be excluded under this Coverage Part or Policy, such as losses ex- cluded by the Nuclear Hazard Exclusion or the War And Military Action Exclusion. Page 2 of 2 © ISO Properties, Inc., 2002 IL09 61 11 02 [] ARCH INSURANCE COMPANY THEFT, DISAPPEARANCE AND DESTRUCTION COVERAGE FORM CRIME -- COVERAGE FORM C COVERAGE We will pay for loss of Covered property resulting directly from the Covered Causes of Loss. Section 1. -- Inside the Premises I. Covered property: "Money" and "securities" inside the "premises" or a "banking premises." 2. Covered Causes of Loss a. "Theft~ b. Disappearance c. Destruction 3. Coverage Extensions a. Containers of Covered Property: We will pay for loss of, and loss from damage to, a locked safe, vault, cash register, cash box or cash drawer located in the "promises" resulting directly from an actual or attempted: (1) "Theft" of; or (2) Unlawful entry into those containem. b. Premises Damage: We will pay for loss from damage to the "premises~ or its exterior resulting directly from an actual or attempted "theft~ of Covered Property if you are the owner of the "premises" or are liable for damage to it. Section 2. -- Outside the Premises '1. Covered Property: ~Money" and "securities" outside the "premises" in the care and custody of a "messenger." 2. Covered Causes of Loss a. "Theft' b. Disappearance c. Destruction 3. Coverage Extension Conveyance of Property by Armored Motor Vehicle Company: We will pay for loss of Covered Property resulting directly from the Covered Causes of Loss while outside the ~premises" in the care and custody of an armored motor vehicle company. But we will pay only for the amount of loss that you cannot recover: a. Under your contract with the armored motor vehicle company; and b. From any insurance or indemnity carried by, or for the benefit of customers of, the armored motor vehicle company. LIMIT OF INSURANCE The most we will pay for loss in any one ~occurrence" is the applicable Limit of Insurance shown in the Declarations. DEDUCTIBLE We will not pay for loss in any one "occurrence" unless the amount of loss exceeds the Deductible Amount shown in the Declarations. We will then pay the amount of loss in excess of the Deductible Amount, up to the Limit of Insurance. In the event more than one Deductible Amount could apply to the loss, only the highest Deductible Amount may be applied. ADDITIONAL EXCLUSIONS, CONDITIONS AND DEFINITIONS In addition to the previsions in the Crime General Provisions, this Coverage Form is subject to the following: Additional Exclusions: We will not pay for loss as specified below: 1. Accounting or Arithmetic Errors or Omissions: Loss resulting from accounting or arithmetic errors or omissions. 2. Acts of Employees, Directors, Trustees or Representatives: Loss resulting from any dishonest or criminal act committed by any of your "employees," directors, trustees or authorized representatives: a. Acting alone or in collusion with other persons; or b. While performing services for you or othenNise. 3. Exchanges or Purchases: Loss resulting from the giving or surrendering of property in any exchange or purchase. 4. Fire: Loss from damage to the "premises" resulting from fire, however caused. 5. Money Operated Devices: Loss of property contained in any money operated device unless the amount of "money" deposited in it is recorded by a continuous recording instrument in the device. AIMUCR0004 3 2003 Page 1 of 2 Includes copyrighted matedal of Insurance Services Office, Inc., with its permission ARCH INSURANCE COMPANY 6. Transfer or Surrender of Property a. Loss of property after it has been transferred or surrendered to a person or place outside the "premises" or "banking premises": ('1) On the basis of unauthorized instructions; or (2) As a result of a threat to do: (a) Bodily harm to any pemon; or (b) Damage to any property. b. But this exclusion does not apply under COVERAGE, Section 2. to loss of Covered Property while outside the "premises" or ~banking premises" in the care and custody of a "messenger" if you: (1) Had no knowledge of any threat at the time the conveyance began; or (2) Had knowledge of a threat at the time the conveyance began, but the loss was not related to the threat. 7. Vandalism: Loss from damage to the "premises" or its exterior or to containers of Covered Property by vandalism or malicious mischief. 8. Voluntary Parting of Title to or Possession of Property: Loss resulting from your, or anyone acting on your express or implied authority, being induced by any dishonest act to voluntarily part with title to or possession of any property. Additional Condition Duties in the Event of Loss: If you have reason to believe that any loss of, or loss from damage to, Covered Property involves a violation of law, you must notify the police. Additional Definitions '1. "Banking Premises" means the interior of that portion of any building occupied by a banking institution or similar safe depository. 2. "Messenger" means you, any of your partners or any "employee" while having care and custody of the property outside the "premises." 3. "Occurrence" means an: a. Act or series of related acts involving one or more persons; or b. Act or event, or a series of related acts or events not involving any person. 4. "Premises" means the interior of that portion of any building you occupy in conducting your business. 5. "Theft" means any act of stealing. AIMUCR0004 3 2003 Page 2 of 2 includes copyrighted material of insurance Services Office, Inc., with its permission ARCH INSURANCE COMPANY PUBLIC EMPLOYEE DISHONESTY COVERAGE FORM CRIME COVERAGE FORM O -- PER LOSS COVERAGE We will pay loss of, and loss from damage to, Covered Property resulting directly from the Covered Cause of Loss. '1. Covered Property: "Money," "securities," and "property other than money and securities." 2. Covered Cause of Loss: "Employee dishonesty." 3. Coverage Extension Employees Temporarily Outside Coverage Territory: We will pay for loss caused by any "employee" while temporarily outside the territory specified in the Territory General Condition for a period not more than 90 days. LIMIT OF INSURANCE The most we will pay for loss in any one "occurrence" is the applicable Limit of Insurance shown in the Declarations. DEDUCTIBLE 1. We will not pay for loss in any one "occurrence" unless the amount of loss exceeds the Deductible Amount shown in the Declarations. We will then pay the amount of loss in excess of the Deductible Amount, up to the Limit of Insurance. 2. You must: a. Give us notice as soon as possible of any loss of the type insured under this Coverage Form even though it falls entirely within the Deductible Amount. b. Upon our request, give us a statement describing the loss. ADDITIONAL EXCLUSIONS, CONDITIONS AND DEFINITIONS: In addition to the provisions in the Crime General Provisions, this Coverage Form is subject to the following: 1. Additional Exclusions: We will not pay for loss or damages as specified below: a. Employee Cancelled Under Prior Insurance: loss caused by any "employee" of yours, or predecessor in interest of yours, for whom similar prior insurance has been cancelled and not reinstated since the last such cancellation. b. Inventory Shortages: loss, or that part of any loss, the proof of which as to its existence or amount is dependent upon: (1) An inventory computation; or (2) A profit and loss computation. c. Bonded Employee: loss caused by any "employee" required by law to be individually bonded. d. Treasurer or Tax Collector: loss caused by a treasurer or tax collector by whatever name known. e. Damages: damages for which you are legally liable as a result of: ('l)The deprivation or violation of the civil dghts of any person by an "employee"; or (2)The tortious conduct of an "employee," except conversion of property of other parties held by you in any capacity. 2. Additional Conditions: a. Cancellation as to Any Employee: This insurance is cancelled as to any "employee": ('1) Immediately upon discovery by you or any official or employee authorized to manage, govern or control your employees, of any dishonest act committed by that "employee" whether before or after becoming employed by you. (2) On the date specified in a notice mailed to you. That date will be at least 30 days after the date of mailing. The mailing of notice to you at the last mailing address known to us will be sufficient proof of notice. Delivery of notice is the same as mailing. b. Sole Benefit: This insurance is for your sole benefit. No legal proceeding of any kind to recover on account of loss under this coverage may be brought by anyone other than you. c. Indemnification: We will indemnify any of your officials who are required by law to give bonds for the faithful performance of their service against loss through dishonest acts of persons who serve under them~ subject to the Limit of Insurance. AIMUCR0006 3 2003 Page 1 of 2 ARCHINSURANCECOMPANY Additional Definitions a, "Employee Dishonesty" in Paragraph 2., COVERAGE Section, means only dishonest acts committed by an "employee," whether identified or not, acting alone or in collusion with other persons, with the manifest intent to: ('1) Cause you to sustain loss; and also (2) Obtain financial benefit (other than employee benefits earned in the normal course of employment, including: salaries, commissions, fees, bonuses, promotions, awards, profit sharing, or pensions) for: (a) The ~employee"; or (b)Any person or organization intended by the "employee' to receive that benefit. b. "Occurrence" means all loss caused by, or involving, one or more "employees", whether the result of a single act or series of acts. AIMUCR0006 3 2003 Page 2 of 2 ARCHINSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR, 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADD FAITHFUL PERFORMANCE OF DUTY This endorsement modifies insurance provided under the following: PUBLIC EMPLOYEE DISHONESTY COVERAGE FORM O or P PROVISIONS 1. The following is added as a Covered Cause of Loss: Failure of any "employee" to faithfully perform his or her duties as proscribed by law, when such failure has as its direct and immediate rosult a loss of your Coverod Property. 2. The following Additional Exclusion is added: Depository Failure: loss resulting from the failuro of any entity acting as a depository for your property or property for which you are responsible. 3. Part 2.a.(t) of the Additional Condition, Cancellation as to Any Employee, is deleted and the following substituted: Imroediately upon discovery by you or any official or employee authorized to manage, govern or control your employees of any act on the part of an "employee" whether before or after becoming employed by you which would constitute a loss coverod under the terms of this Coverage Form, as amended by this endorsement. Part 2.c. of the Additional Condition, Indemnification, is deleted and the following substituted: Indemnification: We will indemnify any of your officials who are required by law to give bonds for the faithful performance of their service against loss through the failure of any "employee" under the supervision of that official to faithfully perform his or her duties as prescribed by law, when such failure has as its diroct and immediate rosult a loss of your Covered Property. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUCR0009 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. VOLUNTEER WORKERS, OTHER THAN FUND SOLICITORS, AS EMPLOYEES This endorsement modifies insurance provided under the following: CRIME GENERAL PROVISIONS "Employee~ also includes any non-compensated natural person, other than one who is a fund solicitor, while performing services for you that are usual to the duties of an "employee". ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUCR0008 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BONDED EMPLOYEE AMENDMENT This endorsement modifies insurance provided under the following: PUBLIC EMPLOYEE DISHONESTY COVERAGE FORM 0 -- PER LOSS PUBLIC EMPLOYEE DISHONESTY COVERAGE FORM P -- PER EMPLOYEE Item 'l.c. in the ADDITIONAL EXCLUSIONS, CONDITIONS AND DEFINITIONS section is deleted in its entirety and replaced by: c. Bonded Employee: loss caused by any "employee" required by law to be individually bonded. This exclusion does not apply to any "employee" required to be bonded under the provisions of ERISA. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUCR0011 3 2003 GENERAL LIABILITY COVERAGE PART SUPPLEMENTAL DECLARATIONS These Supplemental Declarations form a part of policy number KMPKG00071 LIMITS OF INSURANCE Each Occurence Limit Damage to Premises Rented to You Limit Medical Expense Limit Personal and Advertising Injury Limit $ General Aggregate Limit ( other than Products/Completed Operations~ Products/Completed Operations Aggregate Limit $ $ 1~000~000 $ 50~000 $ 10,000 INCLUDED 3~000~000 INCLUDED any one premises any one person any one person or organization FORM OF BUSINESS Form of business: [] Municipality [] Public School [] Special District [] Other: CLASSIFICATION AND PREMIUM Classification Governmental Entity *Premium Basis Included Prem/ Cps Included Rate Advance Premium Prod/Comp Cps Included Totals: FORMS AND ENDORSEMENTS (other than applicable forms and endorsements shown elsewhere in the policy) Forms and endorsements applying to this Coverage Part and made part of this policy at time of issue: See AIMUIL0002 (3 2003) Prem/ Prod/Comp Cps Cps Included Included Included Included * (a) Area, (c) Total Cost, (m) Admission, (p) Payroll, (s) Gross Sales, (u) Units, (o) Other /~""~TH S SUPPLEMENTAL DECLARATIONS AND THE COMMON POLICY DECLARATIONS, TOGETHER WITH THE COMMON * ;~OLICY CONDITIONS, COVERAGE FORM(S) AND ENDORSEMENTS COMPLETE THE ABOVE NUMBERED POLICY. AIMULI0029 (3 2003) ARCHINSURANCECOMPANY GENERAL LIABILITY COVERAGE FORM PUBLIC ENTITY Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy, the words "you", and "your" and "Named Insured" refer to the entity identified as the "Named Insured" in the Declarations. The words "Insured" or "lnsureds" refer to any person or organization qualifying as an ~lnsured" under SECTION II - WHO IS AN INSURED. The words ~we", "us", tour" and "Company" refer to the Company stated in the Declarations as providing this insurance. Other words and phrases that appear in quotation marks have special meanings. Refer to SECTION V - DEFINITIONS and other provisions of this policy for such meanings. SECTION I -- COVERAGES COVERAGE A. BODILY INJURY AND PROPERTY DAMAGE LIABILITY '1. Insuring Agreement a. We will pay those sums that the insured becomes legally obligated to pay as damages because of "bodily injury" or "property damage" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "bodily injury" or "property damage" to which this insurance does not apply. We may, at our discretion, investigate any "occurrence" and settle any claim or "suit" that may result. But: ('1) The amount we will pay for damages is limited as described in SECTION III -- LIMITS OF INSURANCE; and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverages A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under SUPPLEMENTARY PAYMENTS -- COVERAGES A AND B. b. This insurance applies to "bodily injury" and "preperty damage" only if: (1) The "bodily injury" or "property damage" is caused by an ~occurrence" that takes place in the "coverage territory"; and (2) The "bodily injury" or "property damage" occurs during the policy period. c. Damages because of "bodily injury" include damages claimed by any person or AIMULI0024 3 2003 organization for care, loss of services or death resulting at any time from the "bodily injury". Exclusions This insurance does not apply to: a. Expected or Intended Injury "Bodily injury" or "property damage" expected or intended from the standpoint of the insured. This exclusion does not apply to "bodily injury" or "property damage" resulting from the use of reasonable force to protect persons or property. b, Contractual Liability "Bodily injury" or "property damage" for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages: ('1) That the insured would have in the absence of the contract or agreement; or (2) Assumed in a contract or agreement that is an "insured contract", provided the ~bodily injury" or "property damage" occurs subsequent to the execution of the contract or agreement. Solely for the purposes of liability assumed in an "insured contract", reasonable attorney fees and necessary litigation expenses incurred by or for a party other than an insured are deemed to be damages because of "bodily injury" or "property damage', provided: (a) Liability to such party for, or for the cost of, that party's defense has also been assumed in the same "insured contract"; and (b) Such attorney fees and litigation expenses are for defense of that party against a civil or alternative dispute resolution proceeding in which damages to which this insurance applies are alleged. 1 of 15 Includes copyrighted mater[aP of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1997 ARCHINSURANCE COMPANY c. Liquor Liability "Bodily injury" or "property damage~ for which any insured may be held liable by reason of: (1) Causing or contributing to the intoxication of any person; (2) The furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or (3) Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages. This exclusion applies only if you are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. d. Workers Compensation and Similar Laws Any obligation of the insured under a workers benefits or law or any compensation, disability unemployment compensation similar law. Employer's Liability "Bodily injury" to: An "employee" of the insured arising out of and in the course of employment by the insured; (2) Any volunteer, including volunteer firemen or volunteer policemen, arising out of and in the course of their duties for any insured; or (3) The spouse, child, parent, brother or sister of that "employee" or volunteer as a consequence of paragraph (l) and (2) above. This exclusion applies: (1) Whether the insured may be liable as an employer or in any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. This exclusion does not apply to liability assumed by the insured under an "insured contract". Pollution (~) "Bodily injury" or ~preperty damage" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants": (a) At or from any premises, site or location which is or was at any time owned or occupied by, or rented or (c) (d) loaned to, any insured. However, this subparagraph does not apply to: (i) "Bodily injury" if sustained within a building and caused by smoke, fumes, vapor or soot from equipment used to heat that building; or (ii) "Bodily injury" or "property damage" arising out of heat, smoke or fumes from a "hostile fire"; (iii)"Pmperty damage" to a building or its contents if caused by sewage resulting from: (aa) The reverse flow of such sewage from within any sewage facility that you own, operate or maintain; or (bb) The escape of sewage from any fixed conduit that you own, operate or maintain, but only if the escape occurs away from land you own or lease; At or from any premises, site or location which is or was at any time used by or for any insured or others for the handling, storage, disposal, processing or treatment of waste; Which are or were at any time transported, handled, stored, treated, disposed of, or processed as waste by or for any insured or any person or organization for whom you may be legally responsible; or At or from any premises, site or location on which any insured or any contractors or subcontractors working directly or indirectly on any insured's behalf are performing operations if the "pollutants" are brought on or to the premises, site or location in connection with such operations by such insured, contractor or subcontractor. However, this subparagraph does not apply to: (i) "Bodily injury" or "property damage' arising out of the escape of fuels, lubricants or other operating fluids which are needed to perform the normal electrical, hydraulic or mechanical functions necessary for the operation of "mobile equipment" or its parts, if such fuels, lubricants or other AIMULI0024 3 2003 2 of 15 Includes copyrighted matedal of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1997 ARCHINSURANCE COMPANY operating fluids escape from a vehicte part designed to hold, store or receive them. This exception does not apply if the "bodily injury" or "praperty damage" adses out of the intentional discharge, dispersal or release of the fuels, lubricants or other operating fluids, or if such fuels, lubricants or other operating fluids are brought on or to the premises, site or location with the intent that they be discharged, dispersed or released as part of the operations being performed by such insured, contractor or subcontractor; (ii) "Bodily injury" or "property damage" sustained within a building and caused by the release of gases, fumes or vapors from materials brought into that building in connection with operations being performed by you or on your behalf by a contractor or subcontractor; or (iii) "Bodily injury" or "property damage" arising out of heat, smoke or fumes from a "hostile fire". (e) At or from any premises, site or location on which any insured or any contractors or subcontractors working directly or indirectly on any insured's behalf are performing operations if the operations are to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants". (2) Any loss, cost or expense arising out of any: {a) Request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants"; or (b) Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of, "pollutants". However, this paragraph does not apply to liability for damages because of "property damage" that the insured would have in the absence of such request, demand, order or statutory or regulatory requirement, or such claim or "suit" by or on behalf of a governmental authority. g, Aircraft, Auto or Watercraft "Bodily injury" or "property damage" arising out of the ownership, maintenance, use, or entrustment to others of any aircraft, "auto" or watercraft owned or operated by or rented or loaned to any insured. Use includes operation and "loading or unloading". This exclusion does not apply to: (1) A watercraft you own that is less than 26 feet long; (2) A watercraft while ashore or on premises you own or rent; (3) A watercraft you do not own that is: (a) Less than 26 feet long; and (b) Not being used to carry persons or property for a charge; (4) Parking an "auto" on, or on the ways next to, premises you own or rent, provided the "auto" is not owned by or rented or loaned to any insured; {$) Liability assumed under any "insured contract" for the ownership, maintenance or use of aircraft or watercraft; or (6) "Bodily injury" or "property damage" arising out of the operation of any of the equipment listed in paragraphs f. (2) or f. {3) of the definition of "mobile equipment". h. Mobile Equipment "Bodily injury" or "property damage" arising out of: (1) The transportation of "mobile equipment" by an "auto" owned or operated by or rented or loaned to any insured; or (2) The use of "mobile equipment" in, or while in practice or preparation for a prearranged racing, speed or demolition contest or in any stunting activity. i. War "Bodily injury" or "property damage" due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. This exclusion applies only to liability assumed under a contract or agreement. AIMULI0024 3 2003 3 of 15 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1997 ARCH INSURANCE COMPANY j. Damageto Property "Property damage" to: ('1) Property you own, rent or occupy; (2) Promises you sell, give away or abandon, if the "property damage" arises out of any part of those premises; (3) Property loaned to you; (4) Pemonal property in the cam, custody or control of the insured; ($) That particular part of real property on which you or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the "property damage" arises out of those operations; or (6) That particular part of any property that must be restored, repaired or replaced because "your work" was incorrectly performed on it. Paragraphs ('1), (3) and (4) of this exclusion do not apply to "property damage" (other than damage by fire) to premises, including the contents of such promises, ronted to you for a pedod of 7 or fewer consecutive days. A separate limit of insurance applies to Damage To Promises Rented To You as described in Section III - Limits Of Insurance. Paragraph (2) of this exclusion does not apply if the premises are "your work" and were never occupied, rented or held for rontal by you. Paragraphs (3), (4), ($) and (6) of this exclusion do not apply to liability assumed under a sidetrack agroement. Paragraph (6) of this exclusion does not apply to "property damage" included in the "products-completed operations hazard". k. Damageto Your Product "Property damage" to "your product" arising out of it or any part of it. I. Damage to YourWork "Property damage" to "your work~ arising out of it or any part of it and included in the "products-completed operations hazard". This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor. m. Damage to Impaired Property or Property Not Physically Injured "Property damager to "impaired property" or property that has not been physically injured, arising out of: ('1) A defect, deficiency, inadequacy or dangerous condition in "your product" or "your work"; or (2) A delay or failuro by you or anyone acting on your behalf to perform a contract or agreement in accordance with its terms. This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to "your product" or "your work" after it has been put to its intended use. n. Recall of Products, Work or Impairod Property Damages claimed for any loss, cost or expense incurred by you or others for the loss of use, withdrawal, rocall, inspection, ropair, replacement, adjustment, removal or disposal of: ('1) "Your product"; (2) "Your work"; or (3) "Impaired property"; if such product, work, or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it. o. Failureto Supply "Bodily injury" or "property damage~ arising out of the failure of any insurod to adequately supply gas, oil, water, electricity or steam by any utility, whether owned or not by any insured. Except for those insurods generating their own electric power, this exclusion does not apply if the failuro results from the sudden and accidental injury to tangible property owned or used by any insured to procure, produce, process or transmit the gas, oil, water, electricity or steam. p. Employment- Related Practices "Bodily injury" to: (1) A person arising out of any: (a) Refusal to employ that person; (b) Termination of that person's employment; AIMULt0024 3 2003 4 of 15 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, insurance Services Office, Inc., 1997 ARCHINSURANCE COMPANY (c) Employment related practices, policies, acts or omissions, including but not limited to coercion, demotion, failure to promote, evaluation, reassignment, discipline, defamation, harassment, humiliation, or discrimination directed at that person; or (d) Any negligent or intentional misrepresentation made in connection with (a), (b), or (c) above; or (2) The spouse, child, parent, brother or sister of that person as a consequence of "bodily injury" to that person at whom any of the employment-related practices described in paragraphs (a), (b), or (c) above is directed. This exclusion applies: ('1) Whether the insured may be liable as an employer or in any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. Law Enforcement Activities "Bodily injury" or "property damage" arising out of: ('1) The ownership, maintenance or use of any premises or portion of the premises used as a police department or law enforcement department including jails, detention cells and/or holding facilities by the insured; or (2) Any act or omission resulting from law enforcement activities of your police department, or any of your other law enforcement agencies, including their agents, volunteers and employees. Hospital or Nursing Home Premises "Bodily injury" or "property damage" arising out of the ownership, maintenance or use of any premises or portion of any premises used as a hospital or nursing home. Professional Health Care Services "Bodily injury" or "property damage" arising out of: ('1) The rendering or failure to render: (a) Medical, surgical, dental, x-ray or nursing service, treatment, advice or instruction, or the related furnishing of food or beverages; or (b) Any health or therapeutic service, treatment, advice or instruction. AIMULI0024 3 2003 5 of 15 (2) The furnishing or dispensing of drugs or medical, dental or surgical supplies or appliances; or (3) The handling or treatment of dead bodies, including autopsies, organ donation or other procedures. This exclusion does not apply to "bodily injury" or "property damage" arising out of the emergency health care services of your "employees" or volunteers who are paramedics, emergency medical technicians, or licensed or registered visiting nurses qualifying as an insured under this policy. Asbestos "Bodily injury" or "property damage" arising out of: ('1) Inhaling, ingesting or physical exposure to asbestos or goods or products containing asbestos; or (2) The use of asbestos in construction or manufacturing any good, product or structure; or (3) The removal of asbestos from any good, product or structure; or (4) The manufacture, sale, transportation, storage or disposal of asbestos or goods or products containing asbestos. The insurance afforded by this Coverage Part does not apply to payment for the investigation or defense of any loss, injury or damage or any cost, fine or penalty or for any expense of claim or "suit" related to paragraphs (1), (2), (3), or (4) above. Lead "Occurrences" at or from any premises, site or location which is or was at any time owned or occupied by, or rented or loaned to, any insured, or from the operations of the insured, which result in: (1) "Bodily injury" arising out of the ingestion, inhalation or absorption of lead in any form; {2) "Property damage" arising from any form of lead; (3) Any loss, cost or expense arising out of any request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, lead; or (4) Any loss, cost or expense arising out of any claim or suit by or on behalf of a Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1997 ARCHINSURANCE COMPANY governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of, lead. v. Airport "Bodily injury~ or "property damage" arising out of the ownership, maintenance, operation, or use of any airfield equipped with Federal Aviation Administration controlled towers, including all runways, hangars, buildings or other properties in connection with aviation activities or any other use of airport facilities or properties. w. Personal And Advertising Injury "Bodily injury" arising out of "personal and advertising injury'. Exclusions c. through n. do not apply to damage by fire to premises rented to you or temporarily occupied by you with permission of the owner. A separate limit of insurance applies to this coverage as described in SECTION III -- LIMITS OF INSURANCE. COVERAGE B. PERSONAL AND ADVERTISING INJURY LIABILITY 1. Insuring Agreement a. We will pay those sums that the insured becomes legally obligated to pay as damages because of "personal and advertising injury" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages~ However, we will have no duty to defend the insured against any "suit" seeking damages for ~personal and advertising injury" to which this insurance does not apply. We may, at our discretion, investigate any offense and settie any claim or "suit" that may result. But: ('1) The amount we will pay for damages is limited as described in SECTION III -- LIMITS OF INSURANCE; and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverages A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under SUPPLEMENTARY PAYMENTS -- COVERAGES A AND B. b. This insurance applies to ~personal and advertising injury" caused by an offense arising out of your business but only if the offense was committed in the "coverage territory" dudng the policy period. 2. Exclusions This insurance does not apply to: a. "Personal and advertising injury": (1) Caused by or at the direction of the insured with the knowledge that the act would violate the rights of another and would inflict "personal and advertising injury"; (2) Adsing out of oral or written publication of material, if done by or at the direction of the insured with knowledge of its falsity; (3) Arising out of oral or written publication of material whose first publication took place before the beginning of the policy period; (4) Arising out of a criminal act committed by or at the direction of any insured; (5) For which the insured has assumed liability in a contract or agreement. This exclusion does not apply to liability for damages that the insured would have in the absence of the contract or agreement; (6) Arising out of a breach of contract, except an implied contract to use another's advertising idea in your "advertisement"; (7) Arising out of the failure of goods, products or services to conform with any statement of quality or performance made in your "advertisement"; (8) Arising out of the wrong description of the pdce of goods, products or services stated in your "advertisement"; or (9) Committed by an insured whose business is advertising, broadcasting, publishing or telecasting. However, this exclusion does not apply to paragraphs 15.a, b. and c. of "personal and advertising injury" under SECTION V - DEFINITIONS. b. Professional Health Care Services "Personal and advertising injury" arising out of: (1) The rendering or failure to render: (a) Medical, surgical, dental, x-ray or nursing service, treatment, advice or instruction, or the related furnishing of food or beverages; or (b) Any health or therapeutic service, treatment, advice or instruction. AIMULI0024 3 2003 6 of 15 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, insurance Services Office, Inc., 1997 ARCH INSURANCE COMPANY (2) The furnishing or dispensing of drugs or medical, dental or surgical supplies or appliances; or (3) The handling or treatment of dead bodies, including autopsies, organ donation or other procedures. This exclusion does not apply to "personal and advertising injury" adsing out of the emergency health care services of your ~employees" or volunteers who are paramedics, emergency medical technicians, or licensed or registered visiting nurses qualifying as an insured under this policy. c. Pollution (1) "Personal and advertising Injury" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants" at any time. (2) Any loss, cost or expense arising out of any: (a) Request, demand or order that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants;" or (b) Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of, "pollutants". d, Employment- Related Practices "Personal and advertising injury": (1) To a person arising out of any: (a) Refusal to employ that person; (b) Termination of that person's employment; (c) Employment related practices, policies, acts or omissions, including but not limited to coercion, demotion, failure to promote, evaluation, reassignment, discipline, defamation, harassment, humiliation, or discrimination directed at that person; or (d) Any negligent or intentional misrepresentation made in connection with (a), (b), or (c) above; or (2) To the spouse, child, parent, brother or sister of that person as a consequence of "personal and advertising injury" to that person at whom any of the employment- related practices described in paragraphs (a), (b), or (c) above is directed. This exclusion applies: ('1) Whether the insured may be liable as an employer or in any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. e. Law Enforcement Activities "Personal and advertising injury" arising out of: (1) The ownership, maintenance or use of any premises or portion of the premises used as a police department or law enfomement department including jails, detention ceils and/or holding facilities by the insured; or (2) Any act or omission resulting from law enforcement activities of your police department, or any of your other law enforcement agencies, including their agents, volunteers and employees. f. Asbestos "Personal and advertising injury" arising out of: (1) Inhaling, ingesting or physical exposure to asbestos or goods or products containing asbestos; or (2) The use of asbestos in construction or manufacturing any good, product or structure; or (3) The removal of asbestos from any good, product or structure; or (4) The manufacture, sale, transportation, storage or disposal of asbestos or goods or products containing asbestos. The insurance afforded by this Coverage Part does not apply to payment for the investigation or defense of any loss, injury or damage or any cost, fine or penalty or for any expense of claim or "suit" related to paragraphs (t), (2), (3), or (4) above. g. Lead "Occurrences" or offenses at or from any premises, site or location which is or was at any time owned or occupied by, or rented or loaned to, any insured, or from the operations of the insured, which result in: AIMULI0024 3 2003 7 of 15 Includes copyrighted material of Insurance Services Office, Inc., with its permission, Copyright, Insurance Services Office, Inc., 1997 ARCHINSURANCECOMPANY (1) "Personal and advertising injury" arising fmm any form of lead; (2) Any loss, cost or expense arising out of any request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, lead; or (3) Any loss, cost or expense arising out of any claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up , removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of, lead. COVERAGE C. MEDICAL PAYMENTS 1. Insuring Agreement a. We will pay medical expenses as described below for "bodily injury" caused by an accident: (1) On premises you own or rent; (2) On ways next to premises you own or rent; or (3) Because of your operations; provided that: (1) The accident takes place in the "coverage territory" and dudng the policy period; (2) The expenses are incurred and reported to us within one year of the date of the accident; and (3) The injured person submits to examination, at our expense, by physicians of our choice as often as we reasonably require. b. We will make these payments regardless of fault. These payments will not exceed the applicable limit of insurance. We will pay reasonable expenses for: (1) First aid administered at the time of an accident; (2) Necessary medical, surgical, x-ray and dental services, including prosthetic devices; and (3) Necessary ambulance, hospital, professional nursing and funeral services. 2. Exclusions We will not pay expenses for "bodily injury": a. To any insured. AIMULI0024 3 2003 b. To a person hired to do work for or on behalf of any insured or a tenant of any insured. c. To a person injured on that part of premises you own or rent that the person normally occupies. d. To a person, whether or not an "employee" of any insured, if benefits for the ~bodily injury" are payable or must be provided under a workers' compensation or disability benefits law or a similar law. e. To a person injured while taking part in athletics. f. Included within the "products-completed operations hazard". g. Excluded under Coverage A. h. Due to war whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. i. To any inmate, patient or prisoner: ('1) Who is being treated, cared for, detained or imprisoned in any of the facilities owned or operated by or for any insured; or (2) Because of medical services rendered by you or your "employees~ or any person or organization under contract with you to provide these medical services. SUPPLEMENTARY PAYMENTS -- COVERAGES A AND B 1. We will pay with respect to any claim we investigate or settle, or any "suit" against an insured we defend: a. All expenses we incur. b. Up to $2000 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Liability Coverage applies. We do not have to furnish these bonds. c. The cost of bonds to release attachments, but only for bond amounts within the applicable limit of insurance. We do not have to furnish these bonds. d. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual toss of earnings up to $250 a day because of time off from work. e. All costs taxed against the insured in the "suit". f, Prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the applicable limit of 8of15 includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1997 ARCH INSURANCE COMPANY insurance, we will not pay any prejudgment interest based on that period of time after the offer. g. All interest on the full amount of any judgment that accrues after entry of the judgment and before we have paid, offered to pay, or deposited in court the part of the judgment that is within the applicable limit of insurance. These payments will not reduce the limits of insurance. If we defend an insured against a "suit" and an indemnitee of the insured is also named as a party to the "suit", we will defend that indemnitee if all of the following conditions are met: a. The "suit' against the indemnitee seeks damages for which the insured has assumed the liability of the indemnitee in a contract or agreement that is an "insured contract"; b. This insurance applies to such liability assumed by the insured; c. The obligation to defend, or the cost of the defense of, that indemnitee, has also been assumed by the insured in the same "insured contract"; d. The allegations in the "suit" and the information we know about the "occurrence" are such that no conflict appears to exist between the interests of the insured and the interests of the indemnitee; e. The indemnitee and the insured ask us to conduct and control the defense of that indemnitee against such "suit" and agree that we can assign the same counsel to defend the insured and the indemnitee; and f. The indemnitee: (l) Agrees in writing to: (a) Cooperate with us in the investigation, settlement or defense of the "suit"; (b) Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the "suit"; (c) Notify any other insurer whose coverage is available to the indemnitee; and (d) Cooperate with us with respect to coordinating other applicable insurance available to the indemnitee; and (2) Provides us with wdtten authorization to (a) Obtain records and other information related to the "suit"; and (b) Conduct and control the defense of the indemnitee in such "suit". So long as the above conditions ara met, attorneys fees incurred by us in the defense of that indemnitee, necessary litigation expenses incurred by us and necessary litigation expenses incurred by the indemnitee at our request will be paid as Supplementary Payments. Notwithstanding the provisions of paragraph 2.b.(2) of COVERAGE A- BODILY INJURY AND PROPERTY DAMAGE LIABILITY (Section I -- Coverages), such payments will not be deemed to be damages for "bodily injury" and ~property damage" and will not reduce the limits of insurance. Our obligation to defend an insured's indemnitee and to pay for attorneys fees and necessary litigation expenses as Supplementary Payments ends when: a. We have used up the applicable limit of insurance in the payment of judgments or settlements; or b. The conditions set forth above, or the terms of the agreement described in paragraph f. above, are no longer met. SECTION II--WHO IS AN INSURED 1. The term insured as used herein means the entity designated in the Declarations as the Named Insured and, except as excluded by endorsement to this policy, the following: a. A governmental agency or subdivision, department, municipal body, board or commission, or not-for-profit corporation which is owned and controlled by you. b. All persons who were, now are, or shall be elected or appointed or employed members of any board, commission or agency of yours while acting within the scope of their duties. c. Any person while providing services under a mutual aid agreement, joint powers agreement or similar arrangement, but only with respect to the conduct of your business and only to the extent of your participation or your interest. d. Your "employees" and volunteers but only for acts within the scope of their employment by you or in the course of their duties for you and at your direction. However, no "employee" or volunteer is an insured for: ('1) "Bodily injury" or "personal and advertising injury": AIMULI0024 3 2003 9 of 15 Includes copyrighted matedal of Insurance Se~ices Office, Inc., with its permission. Copyright, insurance Services Office, Inc., ~997 ARCH INSURANCE COMPANY (a) To you or to a co-"employee" or other volunteer while that co-"employee" or other volunteer is either in the course of his or her employment or while acting at the direction of, and within the scope of their duties for you; (b) To the spouse, child, parent, brother or sister of that, co-"employee" or other volunteer as a consequence of paragraph (a) above; (c) For which there is an obligation to share damages with or repay someone else who must pay damages because of the injury described in paragraphs (a) or (b} above; or (d) Arising out of his or her providing or failing to provide professional health care services. But this exclusion does not apply to an "employee" or volunteer of yours who is a paramedic, emergency medical technician, or licensed or registered visiting nurse while acting within the scope of their employment by you or in the course of their duties for you. (2) "Preperty damage" to property: (a) Owned, occupied, or used by, (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by you, any of your "employees", or any of your volunteers. With respect to "mobile equipment" registered in your name under any motor vehicle registration law, any person is an insured while driving such equipment along a public highway with your permission. Any other person or organization responsible for the conduct of such person is also an insured, but only with respect to liability arising out of the operation of the equipment, and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an insured with respect to: (a) "Bodily injury' to a co-~employee" of the person driving the equipment, or (b) "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an insured under this provision. Any municipality, special district or other entity you newly acquire or form will qualify as a Named Insured if there is no other similar insurance AIMULI0024 3 2003 available to that municipality, special distdct or other entity. However: a. Coverage under this provision is afforded only until the 90th day after you acquire or form the organization or, the end of the policy period, whichever is earlier; b. Coverage A does not apply to "bodily injury" or "property damage" that occurred before you acquired or formed the organization; and c. Coverage B does not apply to "personal and advertising injury" arising out of an offense committed before you acquired or formed the organization. SECTION III -- LIMITS OF INSURANCE 1. The Limits of Insurance shown in the Declarations and the rules below fix the most we will pay regardless of the number of: a. Insureds; b. Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suits~. 2. The General Aggregate Limit is the most we will pay for the sum of: a. Medical expenses under Coverage C; b. Damages under Coverage A, except damages because of "bodily injury" or "property damage" included in the "products- completed operations hazard"; and c. Damages under Coverage B. 3. The Products-Completed Operations Aggregate Limit is the most we will pay under Coverage A for damages because of "bodily injury" and "property damage~ included in the "products- completed operations hazard". 4. Subject to 2. above, the Personal and Advertising Injury Limit is the most we will pay under Coverage B for the sum of all damages because of all "personal and advertising injury" sustained by any one person or organization. 5. Subject to 2. or 3. above, whichever applies, the Each Occurrence Limit is the most we will pay for the sum of: a. Damages under Coverage A; and b. Medical expenses under Coverage C because of all "bodily injury~ and "property damage" arising out of any one "occurrence". 6. Subject to 5. above, the Damage To Premises Rented To You Limit is the most we will pay under Coverage A for damages because of "property damage" to any one premises, while rented to you, or in the case of damage by fire, 10 of 15 Includes copyrighted material of Insurance Services Office, inc., with its permission. Copyright, Insurance Services Office, Inc., 1997 ARCH INSURANCE COMPANY while rented to you or temporarily occupied by you with permission of the owner. Subject to S. above, the Medical Expense Limit is the most we will pay under Coverage C for all medical expenses because of "bodily injury" sustained by any one person. The Limits of Insurance of this Coverage Part apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance. SECTION IV -- PUBLIC ENTITY GENERAL LIABILITY CONDITIONS 1. Duties In The Event Of Occurrence, Offense, Claim Or Suit a. You must see to it that we are notified as soon as practicable of an "occurrence" or an offense that may result in a claim. To the extent possible, notice should include: (l) How, when and where the "occurrence" or offense took place; (2) The names and addresses of any injured persons and witnesses; and (3) The nature and location of any injury or damage arising out of the "occurrence" or offense. b. If a claim is made or "suit" is brought against any insured, you must: (1) Immediately record the specifics of the claim or "suit" and the date received; and (2) Notify us as soon as practicable. You must see to it that we receive written notice of the claim or "suit" as soon as practicable. c. You and any other involved insured must: (1} Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or "suit"; (2) Authorize us to obtain records and other information; (3) Cooperate with us in the investigation or settlement of the claim or defense against the "suit"; and (4) Assist us, upon our request, in the enforcement of any right against any person or organization that may be liable AIMULI0024 3 2003 to the insured because of injury or damage to which this insurance may also apply. d. No insurads will, except at their own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent. Legal Action Against Us No person or organization has a right under this Coverage Part: a. To join us as a party or otherwise bring us into a "suit" asking for damages from an insured; or b. To sue us under this Coverage Part unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured obtained after an actual trial; but we will not be liable for damages that are not payable under the terms of this Coverage Part or that are in excess of the applicable limit of insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal representative. Other Insurance If other valid and collectible insurance is available to the insured for a loss we cover under Coverage A or B of this Coverage Part, our obligations ara limited as follows: a. Primary Insurance This insurance is primary except when b. below applies. If this insurance is primary, our obligations are not affected unless any of the other insurance is also primary. Then, we will share with all that other insurance by the method described in c. below. b. Excess Insurance This insurance is excess over: (1) Any of the other insurance, whether primary, excess, contingent or on any other basis: (a) That is Fire, Extended Coverage, Builder's Risk, installation Risk or similar coverage for "your work"; (b) That is Fire insurance for premises ranted to you or temporarily occupied by you with permission of the owner; or (c) That is insurance purchased by you to cover your liability as a tenant for "property damage" to premises ranted 11 of 15 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1997 ARCHINSURANCE COMPANY to you or temporarily occupied by you with permission of the owner; or (d) If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to Exclusion g. of Coverage A (Section I). (2) Any other primary insurance available to you covering liability for damages arising out of the premises or operations for which you have been added as an additional insured by attachment of an endorsement. When this insurance is excess, we will have no duty under Coverage A or B to defend the insured against any ~suit" if any other insurer has a duty to defend the insured against that "suit". If no other insurer defends, we will undertake to do so, but we will be entitled to the insured's rights against all those other insurers. When this insurance is excess over other insurance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of: (1) The total amount that all such other insurance would pay for the loss in the absence of this insurance; and (2) The total of all deductible and self-insured amounts under all that other insurance. We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations of this Coverage Part. c. Method of Sharing If all of the other insurance permits contribution by equal shares, we will follow this method also. Under this approach each insurer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first. If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers. Bankruptcy or Insolvency The bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obligations under this Coverage Part. 5. Representations By accepting this policy, you agree: a. The statements in the Declarations are accurate and complete; b. Those statements are based upon representations you made to us; and c. We have issued this policy in reliance upon your representations. 6. Separation Of Insureds Except with respect to the Limits of Insurance, and any dghts or duties specifically assigned in this Coverage Part to the first Named Insured, this insurance applies: a. As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom claim is made or "suit" is brought. 7. Transfer Of Rights Of Recovery Against Others To Us If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are transferred to us. The insured must do nothing after loss to impair them. At our request, the insured will bring "suit" or transfer those dghts to us and help us enforce them. 8. When We Do Not Renew If we decide not to renew this Coverage Part, we will mail or deliver to the first Named Insured shown in the Declarations wdtten notice of the nonrenewal not less than 30 days before the expiration date. If notice is mailed, proof of mailing will be sufficient proof of notice. 9. Two or More Coverage Forms, Coverage Parts or Policies Issued By Us If this Coverage Form and any other Coverage Form, Coverage Part or policy issued to you by us or any company affiliated with us apply to the same claim for damages, the maximum Limit of Insurance for Liability Coverage under all of the Coverage Forms, Coverage Parts or policies shall not exceed the highest applicable Limit of Insurance available under any one Coverage Form, Coverage Part or policy. This condition does not apply to any Coverage Form, Coverage Part or policy issued by us or an affiliated company specifically to apply as excess insurance over this policy. AIMULI0024 3 2003 12 of 15 Includes copyrighted matedal of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1997 ARCH INSURANCE COMPANY SECTION V -- DEFINITIONS "Advertisement" means a notice that is broadcast or published to the general public or specific market segments about your goods, products or services for the purpose of attracting customers or supporters. 2. "Auto" means a land motor vehicle, trailer or semitrailer designed for travel on public roads, including any attached machinery or equipment. But "auto" does not include "mobile equipment". 3. "Bodily injury" means bodily injury, sickness, disease, disability, shock, mental anguish, mental injury and humiliation, including resulting death from any of these at any time. 4. "Coverageterdtory" means: a. The United States of America (including its territories and possessions), Puerto Rico and Canada; b. International waters or airspace, provided the injury or damage does not occur in the course of travel or transportation to or from any place not included in a. above; or c. All parts of the world if: (1) The injury or damage arises out of the activities of your "employees" whose home is in the territory described in a. above, but is away for a short time on your business; and (2) The insured's responsibility to pay damages is determined in a "suit" on the medts, in the territory described in a. above or in a settlement we agree to. 5. "Employee" includes a "leased worker". "Employee" does not include a "temporary worker". 6. "Hostile fire" means one which becomes uncontrollable or breaks out from where it is intended to be. 7. "Impaired property" means tangible property, other than "your product" or "your work", that cannot be used or is less useful because: a. it incorporates "your product" or "your work" that is known or thought to be defective, deficient, inadequate or dangerous; or b. You have failed to fulfill the terms of a contract or agreement; if such property can be restored to use by: a. The repair, replacement, adjustment or removal of "your product" or "your work"; or b. Your fulfilling the terms of the contract or agreement. 8. "Insured contract" means: a. A contract for a lease of promises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire to premises while ronted to you or temporarily occupied by you with permission of the owner is not an "insured contract"; b. A sidetrack agreement; c. An easement or license agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; d. An obligation, as required by ordinance, to indemnify a municipality, except in connection with work for a municipality; e. An elevator maintenance agroement; f. That part of any other contract or agroement pertaining to your business (including an indemnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another party to pay for "bodily injury" or "property damage" to a third person or organization. Tort liability means a liability that would be imposed by law in the absence of any contract or agreement. Paragraph f. does not include that part of any contract or agreement: (1) That indemnifies a railroad for "bodily injury" or "property damage" arising out of construction or demolition operations, within 50 feet of any railroad property and affecting any railroad bridge or trestle, tracks, road-beds, tunnel, underpass or crossing; (2) That indemnifies an architect, engineer or surveyor for injury or damage arising out of: (a) Proparing, approving or failing to proparo or approve maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; or (b) Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or damage; or (3) Under which the insurod, if an architect, engineer or surveyor, assumes liability for any injury or damage arising out of the insurod's rendering or failure to render professional services, including those listed in (2) above and supervisory, inspection, architectural or engineering activities. AIMULI0024 3 2003 13 of 15 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1997 ARCHINSURANCE COMPANY 11. ~Leased worker" means a person leased to you by a labor leasing firm under an agreement between you and the labor leasing firm, to perform duties related to the conduct of your business. "Leased worke~' does not include a ~temporary workeff'. "Loading or unloading" means the handling of property: a. After it is moved from the place where it is accepted for movement into or onto an aircraft, watercraft or "auto"; b. While it is in or on an aircraft, watercraft or "auto"; or c. While it is being moved from an aircraft, watercraft or "auto" to the place where it is finally delivered; but "loading or unloading" does not include the movement of property by means of a mechanical device, other than a hand truck, that is not attached to the aimraff, watercraft or "auto". ~Mobile equipment" means any of the following types of land vehicles, including any attached machinery or equipment: a. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; b. Vehicles maintained for use solely on or next to premises you own or rent. However, any land motor vehicle, trailer, or semi-trailer designed for travel on public roads (including any machinery or apparatus that is attached) owned or leased by you shall be deemed an "auto" and not "mobile equipment" if the only reason for considering it "mobile equipment" is that it is maintained for use exclusively on streets or highways owned by you. c. Vehicles that travel on crawler treads; d. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted: ('1) Power cranes, shovels, loaders, diggers or drills; or (2) Road construction or resurfacing equipment such as graders, scrapers or rollers; e. Vehicles not described in a., b., c. or d. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: (1) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment; or (2) Cherry pickers and similar devices used to raise or lower workers. f. Vehicles not described in a., b., c. or d. above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not "mobile equipment" but will be considered "autos": (1) Equipment designed primarily for: (a) Snow removal; (b) Road maintenance but not construction or resurfaoing; or (c) Street cleaning; (2) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and (3) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment. '12. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions. 13. "Personal and advertising injury" means injury, including consequential ~bodily injury", arising out of one or more of the following offenses: a. False arrest, detention or imprisonment; b. Malicious prosecution; c, The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; d. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; e. Oral or written publication of material that violates a person's right of privacy; f. The use of another's advertising idea in your ~advertisement"; g. Infringing upon another's copyright, trade dress or slogan in your "advertisement"; h. False or improper service of process; or i. Discrimination. '14. "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and AIMULI0024 3 2003 14 of 15 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1997 ARCHINSURANCE COMPANY waste. Waste includes materials to be recycled, reconditioned or reclaimed. ~'"", 15 "Products-completed operations hazard": a. Includes all "bodily injury" and "property damage" occurring away from premises you own or rent and arising out of "your product" or "your work" except: (l) Products that are still in your physical possession; or (2) Work that has not yet been completed or abandoned. However, "your work" will be deemed completed at the earliest of the following times: (a) When all of the work called for in your contract has been completed. (b) When all of the work to be done at the job site has been completed if your contract calls for work at more than one job site. (c) When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or subcontractor working on the same project. Work that may need service, (,-~-, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. b. Does not include "bodily injury" or "property damage" arising out of: (1) The transportation of property, unless the injury or damage arises out of a condition in or on a vehicle not owned or operated by you, and that condition was created by the "loading or unloading" of that vehicle by any insured; (2} The existence of tools, uninstalled equipment or abandoned or unused materials; or (3) Products or operations for which the classification, listed in the Declarations or in a policy schedule, states that products- completed operations are subject to the General Aggregate Limit. 16. "Property damage" means: a. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or ~ b. Loss of use of tangible property that is not physically injured. All such loss shall be AIMULI0024 3 2003 deemed to occur at the time of the ~occurrence" that caused it. 17. "Suit" means a civil proceeding in which damages because of "bodily injury", "property damage", or "personal and advertising injury" to which this insurance applies are alleged. "Suit" includes: a. An arbitration proceeding in which such damages are claimed and to which the insured must submit or does submit with our consent; or b. Any other alternative dispute resolution proceeding in which such damages are claimed and to which the insured submits with our consent. 18. "Temporary worker" means a person who is furnished to you to substitute for a permanent "employee" on leave or to meet seasonal or short- term workload conditions. 19. "Your product" means: a. Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by: (1) You; (2) Others trading under your name; or (3) A person or organization whose business or assets you have acquired; and b. Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. "Your product" includes: a. Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your product"; and b. The providing of or failure to provide warnings or instructions. "Your product" does not include vending machines or other property rented to or located for the use of others but not sold. 20. "Your work" means: a. Work or operations performed by you or on your behalf; and b. Materials, parts or equipment furnished in connection with such work or operations. "Your work" includes: a. Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your work"; and b. The providing of or failure to provide warnings or instructions. 15 of 15 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1997 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DAM EXCLUSION This endorsement modifies insurance provided under the following: GENERAL LIABILITY COVERAGE FORM - PUBLIC ENTITY This insurance does not apply to "bodily injury", ~pmperty damage", or "personal and advertising injury= arising out of the rupture, bursting, overtopping, accidental discharge or structural failure of any dam, levee or dike that: 1. You own, operate, use, maintain, license, permit or inspect; or 2. Is located on any property you rent, lease or sub-lease. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMULI0019 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION--FIREWORKS This endorsement modifies insurance provided under the following: GENERAL LIABILITY COVERAGE FORM - EDUCATIONAL INSTITUTION GENERAL LIABILITY COVERAGE FORM - PUBLIC ENTITY The following exclusion is added to Paragraph 2. Exclusions of SECTION I - COVERAGE A. BODILY INJURY AND PROPERTY DAMAGE LIABILITY: This insurance does not apply to "bodily injury" or "property damage" arising out of the ignition or discharge of fireworks in conjunction with any display, demonstration or show, conducted, sponsored or co- sponsored by any insured. Fireworks include but are not limited to firecrackers and all aerial or ground displays. This exclusion does not apply to "bodily injury" or "property damage" arising out of emergency service you provide in response to an emergency adsing out of or resulting from fireworks. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMULI0022 3 2003 ARCHINSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDMENT OF INSURING AGREEMENT -- KNOWN INJURY OR DAMAGE This endorsement modifies insurance provided under the following: GENERAL LIABILITY COVERAGE FORM -- PUBLIC ENTITY GENERAL LIABILITY COVERAGE FORM -- EDUCATIONAL INSTITUTION Paragraph '1. Insuring Agreement of Section I - Coverage A - Bodily Injury And Property Damage Liability is replaced by the following: 1. Insuring Agreement a. We will pay those sums that the insured becomes legally obligated to pay as damages because of "bodily injury" or "property damage" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "bodily injury" or "property damage" to which this insurance does not apply. We may, at our discretion, investigate any "occurrence" and settle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in SECTION III - LIMITS OF INSURANCE; and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverages A or a or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under SUPPLEMENTARY PAYMENTS - COVERAGES A AND B. b. This insurance applies to "bodily injury" and "property damage" only if: ('1) The "bodily injury" or "property damage" is caused by an "occurrence" that takes place in the "coverage territory"; (2) The "bodily injury" or "property damage" occurs during the policy period; and (3) Prior to the policy period, no insured listed under Paragraph 1. of SECTION II - WHO IS AN INSURED, knew that the "bodily injury" or "property damage" had occurred, in whole or in part. If such a listed insured knew, prior to the policy period, that the "bodily injury" or "property damage" occurred, then any continuation, change or resumption of such "bodily injury" or "property damage" dudng or after the policy period will be deemed to have been known prior to the policy pedod. c. "Bodily injury" or "property damage" which occurs during the policy period and was not, prior to the policy period, known to have occurred by any insured listed under Paragraph 1. of SECTION II - WHO IS AN INSURED, includes any continuation, change or resumption of that "bodily injury" or "property damage" after the end of the policy pedod. AIMULI0068 3 2003 Page 1 of 2 includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 2001 ARCHINSURANCE COMPANY d. "Bodily injury" or "property damage" will be deemed to have been known to have occurred at the earliest time when any insured listed under Paragraph '1. of SECTION II - WHO IS AN INSURED: (1) Reports all, or any part, of the "bodily injury" or "property damage" to us or any other insurer; (2) Receives a wdtten or verbal demand or claim for damages because of the "bodily injury" or "property damage"; or (3) Becomes aware by any other means that "bodily injury" or "property damage" has occurred or has begun to occur. e. Damages because of "bodily injury" include damages claimed by any person or organization for care, loss of services or death resulting at any time from the "bodily injury". ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMULI0068 3 2003 Page 2 of 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, inc., 2001 COMMERCIAL GENERAL LIABILITY CG21751202 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION OF CERTIFIED ACTS OF TERRORISM AND OTHER ACTS OF TERRORISM This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART LIQUOR LIABILITY COVERAGE PART OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART RAILROAD PROTECTIVE LIABILITY COVERAGE PART UNDERGROUND STORAGE TANK POLICY AN The following exclusion is added: This insurance does not apply to: TERRORISM "Any injury or damage" arising, directly or indi- rectly, out of a "certified act of terrorism" or an "other act of terrorism". However, with respect to an "other act of terrorism", this exclusion applies only when one or more of the following are attrib- uted to such act: 1. The total of insured damage to all types of property exceeds $25,000,000. In determining whether the $25,000,000 threshold is ex- ceeded, we will include all insured damage sustained by property of all persons and enti- ties affected by the terrorism and business in- terroption losses sustained by owners or occu- pants of the damaged property. For the purpose of this provision, insured damage means damage that is covered by any insur- ance plus damage that would be covered by any insurance but for the application of any terrorism exclusions; or 2. Fifty or more persons sustain death or serious physical injury. For the purposes of this provi- sion, serious physical injury means: a. Physical injury that involves a substantial risk of death; or b. Protracted and obvious physical disfigure- ment; or c. Protracted loss of or impairment of the function of a bodily member or organ; or 3. The terrorism involves the use, release or escape of nuclear materials, or directly or indi- rectly results in nuclear reaction or radiation or radioactive contamination; or 4. The terrorism is carried out by means of the dispersal or application of pathogenic or poi- sonous biological or chemical materials; or 5. Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the terrorism was to release such materials. With respect to this exclusion, Paragraphs '1. and 2. describe the thresholds used to measure the magnitude of an incident of an "other act of terror- ism" and the cimumstances in which the threshold will apply for the purpose of determining whether this exclusion will apply to that incident. B. The following definitions are added: 1. For the purposes of this endorsement, "any injury or damage" means any injury or damage covered under any Coverage Part to which this endorsement is applicable, and includes but is not limited to "bodily injury", "property dam- age", "personal and advertising injury", "injury" or "environmental damage" as may be defined in any applicable Coverage Part. 2. "Certified act of terrorism" means an act that is certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism pursuant to the federal Terrorism Risk Insurance Act of 2002. The federal Terrorism Risk Insurance Act of 2002 sets forth the following criteria for a "certified act of terrorism": a. The act resulted in aggregate losses in excess of $5 million; and CG 2'1 75 12 02 © ISO Properties, Inc., 2002 Page '1 of 2 [] b. The act is a violent act or an act that is dangerous to human life, property or infra- structure and is committed by an individual or individuals acting on behalf of any for- eign person or foreign interest, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. "Other act of terrorism" means a violent act or an act that is dangerous to human life, prop- erty or infrastructure that is committed by an individual or individuals and that appears to be part of an effort to coerce a civilian population or to influence the policy or affect the conduct of any government by coercion, and the act is not certified as a terrorist act pursuant to the federal Terrorism Risk Insurance ACt of 2002. Multiple incidents of an "other act of terrorism" which occur within a seventy-two hour pedod and appear to be carried out in concert or to have a related purpose or common leadership shall be considered to be one incident. C. In the event of any incident of a "certified act of terrorism" or an "other act of terrorism" that is not subject to this exclusion, coverage does not apply to any loss or damage that is otherwise excluded under this Coverage Part. Page 2 of 2 © ISO Properties, Inc., 2002 CG 2t 75 '12 02 [] COMMERCIAL GENERAL LIABILITY CG 2'1 67 04 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FUNGI OR BACTERIA EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART A. The following exclusion is added to Paragraph 2., Exclusions of Section I - Coverage A - Bodily Injury And Property Damage Liability: 2. Exclusions This insurance does not apply to: Fungi or Bacteria a. "Bodily injury" or "property damage" which would not have occurred, in whole or in part, but for the actual, alleged or threat- ened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of, any "fungi" or bacteria on or within a building or structure, including its contents, regardless of whether any other cause, event, material or product contributed con- currently or in any sequence to such injury or damage. b. Any loss, cost or expenses arising out of the abating, testing for, monitoring, clean- ing up, removing, containing, treating, de- toxifying, neutralizing, remediating or dis- posing of, or in any way responding to, or assessing the effects of, "fungi" or bacteria, by any insured or by any other person or entity. This exclusion does not apply to any "fungi" or bacteria that are, are on, or are contained in, a good or product intended for consumption. B. The following exclusion is added to Paragraph 2., Exclusions of Section I - Coverage B - Per- sonal And Advertising Injury Liability: 2. Exclusions This insurance does not apply to: Fungi or Bacteria a. "Personal and advertising injury" which would not have taken place, in whole or in part, but for the actual, alleged or threat- ened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any "fungi" or bacteria on or within a building or structure, including its contents, regardless of whether any other cause, event, material or product contributed con- currently or in any sequence to such injury. b. Any loss, cost or expense arising out of the abating, testing for, monitoring, cleaning up, removing, containing, treating, detoxify- lng, neutralizing, remediating or disposing of, or in any way responding to, or assess- ing the effects of, "fungi" or bacteria, by any insured or by any other person or en- tity. C. The following definition is added to the Defini- tions Section: "Fungi" means any type or form of fungus, includ- ing mold or mildew and any mycotoxins, spores, scents or byproducts produced or released by fungi. CG 21 67 04 02 © ISO Properties, Inc., 2001 Page '1 of I [] ARCHINSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) iNSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. POLLUTION EXCLUSION -- AMENDED This endorsement modifies insurance provided under the following: GENERAL LIABILITY COVERAGE FORM -- PUBLIC ENTITY Subparagraph (iii) of paragraph (1)(a) of exclusion f. Pollution is deleted in its entirety. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMULI0069 3 2003 EMPLOYEE BENEFITS LIABILITY COVERAGE PART SUPPLEMENTAL DECLARATIONS These Supplemental Declarations form a part of policy number KM PKG00071 RETROACTIVE DATE This insurance does not apply to acts, errors or omissions which occur before the Retroactive Date, if any, shown below. Retroactive Date: N/A (Enter Date or "NONE" if no Retroactive Date applies) LIMITS OF INSURANCE Each Employee Limit $ 1,000,000 Aggregate Limit $ 3,ooo,o00 FORM OF BUSINESS [] Municipality [] Public School [] Special District [] Other: DEDUCTIBLE $1,000 This reduces the Limit of Insurance shown as applicable to Each Employee PREMIUM RATE PER EMPLOYEE ESTIMATED PREMIUM NO. OF EMPLOYEES : Included Included (first 5,000) $ Included inCK~ded (next 5,000) $ Included Included (over i 0,000) $ Included Minimum Premium $ Included Advance Premium $ Included InCluded Included FORMS AND ENDORSEMENTS (other than applicable forms and endorsements shown elsewhere in the policy) Forms and endorsements applying to the Coverage Part and made a part of this policy at time of issue: SeeAIMUIL0002 (3 2003) THiS SUPPLEMENTAL DECLARATIONS AND THE COMMON POLICY DECI~ARATIONS, TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE FORM(S) AND ENDORSEMENTs COMPLETE THE ABOVE NUMBERED POLICY. AIMULI0057 (3 2003) ARCH INSURANCE COMPANY EMPLOYEE BENEFITS LIABILITY COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy, the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", ~us" and "our" refer to the Company providing this insurance. The word "insured" means any person or organization qualifying INSURED. Other words and phrases that appear in quotation marks have DEFINITIONS, SECTION I - COVERAGE I. Insuring Agreement. We will pay those sums that the insured becomes legally obligated to pay as damages because of any "act, error or omission" of the insured, or of any other person for whose acts the insured is legally liable. The "act, error or omission" must be committed in the "administration" of your "employee benefit program". No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Paragraph 3. Supplementary Payments. The "act, error or omission" must take place in the "coverage territory" and during the policy period. AIMULI0028 3 2003 as such under SECTION II - WHO IS AN special meaning. Refer to SECTION VI - We will have the right and duty to defend any "suit" seeking those damages. But: (l) The amount we will pay for damages is limited as described in SECTION III - LIMITS OF INSURANCE; (2) We may at our discretion, investigate any report of an "act, error or omission~ and settle any claim or "suit" that may result; and (3) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements. Exclusions. This insurance does not apply to: a. Loss arising out of any dishonest, fraudulent, criminal or malicious "act, error or omission" committed by any insured; b. "Bodily injury", "property damage" or "personal and advertising injury"; c. Loss arising out of failure or performance of contract by any insurer, or any other party, including the insured, obligated to afford benefits; d. Loss arising out of an insufficiency of funds to meet any obligations under any plan included in the "employee benefit program"; e. Any claim or"suit" based upon: (1) Failure of any investment to perform as represented by an insured; Page 1 of 4 (2) Advice given to any person to participate or not to participate in any plan included in the "employee benefit program'; or (3) The investment or non-investment of funds; f. Loss arising out of your failure to comply with the mandatory provisions of any law concerning workers' compensation, unemployment insurance, social security or disability benefits; g. Loss for which the insured is liable because of liability imposed on a fiduciary by the Employee Retirement Security ACt of 1974, as now or hereafter amended; or h. Loss or damage for which benefits have accrued under the terms of your ~employee benefit program" to the extent that such benefits are available from funds accrued by the insured for such benefits or from collectible insurance, notwithstanding the insured's "act, error or omission" in administering the plan which precluded the claimant from receiving such benefits. 3. Supplementary Payments. We will pay, with respect to any claim or "suit" we defend: a. All expenses we incur. b. The cost of bonds to release attachments, but only for bond amounts within the applicable limit of insurance. We do not have to furnish these bonds. c. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual loss of earnings up to $250 a day because of time off from work. d. All costs taxed against the insured in the "suit". e. Prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the applicable limit of insurance, we will not pay any prejudgment ARCH INSURANCE COMPANY interest based on that period of time after the offer. f. All interest on the full amount of any judgment that accrues after entry of the judgment and before we have paid, offered to pay or deposited in court the part of the judgment that is within the applicable limit of insurance. These payments will not reduce the limits of insurance. SECTION II - WHO IS AN INSURED '1. If you are designated in the Declarations as: a. A municipality, public school or special district, you am an insured. b. A partnership or joint venture, you are an insured. c. An organization other than a municipality, public school, special district, partnership or joint venture, you are an insured. Your directors and stockholders are also insureds, but only with respect to their liability as your directors or stockholders. 2. Each of the following is also an insured: a. Each of your partners, executive officers, board members and "employees~ who is authorized to administer your "employee benefit program". b. Your legal representative if you die, but only with respect to duties as such. That representative will have all your dghts and duties under this Coverage Part. 3. Any organization you newly acquire or form, other than a partnership, joint venture, or limited liability company, and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the 90th day after you acquire, or form the organization or the end of the policy period, whichever is earlier; and b. Coverage under this provision does not apply to any "act, error or omission" that occurred before you acquired or formed the organization. No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture, or limited liability company that is not shown as a Named Insured in the Declarations. SECTION III - LIMITS OF INSURANCE I. The Limits of Insurance shown in the Declarations and the rules below fix the most we will pay regardless of the number of: a. Insureds; b. Claims made or"suits" brought; c. Persons or organizations making claims or bringing "suits"; d. "Acts, errors or omissions" which result in loss; or e. Plans included in your "employee benefit program". 2. The Aggregate Limit is the most we will pay for all damages because of "acts, errors or omissions" committed in the "administration~ of your "employee benefit program". 3. Subject to the Aggregate Limit, the Each Employee Limit is the most we will pay for all damages sustained by any one "employee", including the "employee's" dependents and beneficiaries, because of "acts, errors or omissions" committed in the "administration" of your "employee benefit program". The limits of this Coverage Part apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance. SECTION IV - DEDUCTIBLE Our obligation to pay damages on behalf of the insured applies only tothe amount of damages in excess of the deductible amount stated in the Declarations as applicable to "Each Employee". The limits of insurance applicable to ~Each Employee" will be reduced by the amount of this deductible. The Aggregate limit shall not be reduced by the application of such deductible amount. 2. The deductible amount stated in the Declarations applies to all damages sustained by an "employee" because of an "act, error or omission" covered by this insurance. 3. The terms of this insurance, including those with respect to: a. Our right and duty to defend any "suits" seeking those damages; and b. Your duties in the event of an "act, error or omission" claim or "suit"; apply irrespective of the application of the deductible amount. 4. We may pay any part or all of the deductible amount to effect settlement of any claim or "suit" and, upon notification of the action taken, you shall promptly reimburse us for such part of the deductible amount as has been paid by us. AIMULI0028 3 2003 Page 2 of 4 ARCH INSURANCE COMPANY SECTION V - EMPLOYEE BENEFITS LIABILITY CONDITIONS '1. Duties In The Event Of Act, Error Or Omission, Claim Or Suit. a. You must see to it that we are notified as soon as practicable of an tact, error or omission" which may result in a claim. Notice should include: (1) How, when and where the "act, error or omission" took place; (2) The nature of any damage arising out of the "act, error or omission"; (3} The names and addresses of any "employees" who may suffer damages as a result of the "act, error or omission"; and (4) The names and addresses of any witnesses. b. If a claim is received by any insured you must: (1) Immediately record the specifics of the claim and the date received; and (2) Notify us as soon as practicable. c. You and any other involved insured must: (1) Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or %uit"; (2) Authorize us to obtain records and other information; (3) Cooperate with us in the investigation, settlement or defense of the claim or "suit"; and (4) Assist us, upon our request, in the enforcement of any right against any person or organization which may be liable to the insured because of damage to which this insurance may also apply. d. No insureds will, except at their own cost, voluntarily make a payment, assume any obligation or incur any expense without our consent. 2. Legal Action Against Us. No person or organization has a right under this Coverage Part: a. To join us as a party or otherwise bring us into a "suit" asking for damages from an insured; or b. To sue us under this Coverage Part unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured obtained after an actual trial; but we will not be liable for damages that are not payable under the terms of this Coverage Part or that are in excess of the applicable limit of insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal representative. 3. Other Insurance. If other valid and collectible insurance is available to the insured for a loss we cover under this Coverage Part we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers for such loss. 4. Bankruptcy or Insolvency. Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obligations under this Coverage Part. 5. Representations. By accepting this policy, you agree: a. The statements in the Declarations are accurate and complete; b. Those statements are based upon representations you made to us; and c. We have issued this policy in reliance upon your representations. 6. Separation of Insureds. Except with respect to the Limits of Insurance, and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this insurance applies: a. As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom claim is made or "suit" is brought, 7. Transfer Of Rights Of Recovery Against Others To Us. If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those dghts are transferred to us. The insured must do nothing after loss to impair them. At our request, the insured will bring "suit" or transfer those rights to us and help us enforce them. 8. Cancellation, Non-renewal, Renewal And Reduction Or Deletion Of Coverage. All conditions relating to cancellation, non- renewal, renewal and reduction or deletion of coverage of any General Liability Coverage Form to which this Coverage Form is attached, apply to this Coverage Form. AIMULI0028 3 2003 Page 3 of 4 ARCH INSURANCE COMPANY SECTION VI - DEFINITIONS '1. "Act, error or omission" means the failure to execute a required action, or a mistaken action committed in the "administration" of the insurod's "employee benefit program". 2. "Administration" means: a. Counseling "employees", including their dependents and beneficiaries, with respect to the "employee benefit program"; b. Interpreting the "employee benefit program"; c. Handling records in connection with the ~employee benefit program"; or d. Effecting or terminating any ~employee's" participation in a plan included in the "employee benefit program". 3. "Bodily injury" means bodily injury, sickness, disease, disability, shock, mental anguish, mental injury and humiliation, including resulting death from any of these at any time. 4. "Coverage territory~ means the United States of America (including its territories and possessions), Puerto Rico and Canada. 5. "Employees" includes employees whether actively employed, disabled or retired. 6. ~Employee benefit program" means the following plans: a. Group life insurance, group accident or health insurance, profit sharing plans, pension plans and stock subscription plans, provided such insurance or plans are: ('1) Equally available to all eligible "employees" and; (2) That no one other than an eligible "employee" may subscribe to such insurance or plans; or b. Unemployment insurance, social security benefits, workers' compensation and disability benefits. 7. "Pemonal and advertising injury" means injury other than "bodily injury" arising out of one or moro of the following offenses: a. False arrest, detention or imprisonment; Malicious prosecution; c. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or promises that a person occupies, committed by or on behalf of its owner, landlord or lessor; d. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; e. Oral or written publication of material that violates a person's right of privacy; f. The use of another's advertising idea in your "advertisement"; g. Infringing upon another's copyright, trade dross or slogan in your "advertisement"; h. False or improper service of process; or i. Discrimination. 8. "Property damage" means: a. Physical injury to tangible property, including all rosulting loss of use of that property; or b. Loss of use of tangible properly that is not physically injurod. 9. "Suit" means a civil proceeding in which damages because of an "act, error or omission" to which this insurance applies aro alleged. "Suit" includes: a. An arbitration proceeding in which such damages are claimed and to which the insured must submit or does submit with our consent; or b. Any other alternative dispute resolution proceeding in which such damages aro claimed and to which the insured submits with our consent. AIMULI0028 3 2003 Page 4 of 4 ITEM 1. ITEM2. ARCH INSURANCE COMPANY LAW ENFORCEMENT LIABILITY COVERAGE PART - SUPPLEMENTAL DECLARATIONS THIS SUPPLEMENTAL DECLARATIONS FORMS A PART OF POLICY NO. BUSINESS DESCRIPTION AND LOCATION OF PREMISES: LAW ENFORCEMENT AGENCY: Governmental Entity KMPKG00071 LOCATION OF ALL PREMISES YOU OWN, RENT OR OCCUPY: Per Schedule On File With Company ITEM 3. ITEM 4. ITEM 5. ITEM 6. LIMIT OF LIABILITY COVERAGE A -WRONGFUL ACT(S) ANNUAL AGGREGATE LIMIT $ EACH WRONGFUL ACT LIMIT $ COVERAGE B - MEDICAL PAYMENTS 1~000,000 1,000,000 MEDICAL EXPENSE LIMIT $ 10~000 DEDUCTIBLE $ 5~000 PREMIUM $ Included DESIGNEE OF PUBLIC ENTITY TO REPORT CLAIMS AND RECEIVE NOTICES: ITEM 7. FORM NUMBERS OF COVERAGE FORMS AND ENDORSEMENTS THAT ARE PART OF THIS COVERAGE PART AND MADE PART OF THIS POLICY AT TIME OF ISSUE (ether than applicable forms and endorsements shown elsewhere in the policy): Referto AIMUIL0002 (3 2003) THIS SUPPLEMENTAL DECLARATIONS AND THE COMMON POLICY DECLARATIONS, TOGETHER WITH THE COVERAGE FORM(S) AND ENDORSEMENTS COMPLETE THE ABOVE NUMBERED POLICY. COMMON POLICY CONDITIONS THE COMMON POLICY CONDITIONS DO NOT APPLY TO THIS COVERAGE PART. USAGE OF TERMS WHEN WE USE THE WORD DECLARATIONS IN THIS COVERAGE PART, WE MEAN THIS DECLARATIONS OR THE COMMON POLICY DECLARATIONS. AIMULW0002 (3 2003) ARCH INSURANCE COMPANY LAW ENFORCEMENT LIABILITY POLICY PLEASE READ THIS POLICY CAREFULLY Throughout this policy, the words YOU, YOUR and NAMED INSURED refer to the entity identified as the NAMED INSURED in the Declarations. The words INSURED or INSUREDS refer to any person or entity qualifying as an INSURED under SECTION Ill--WHO IS AN INSURED. The words WE, US, OUR and COMPANY refer to the Company stated in the Declarations as providing this insurance. Other words and phrases that appear in boldface print have special meanings. Refer to SECTION I~EFINITIONS and other provisions of this policy for such meanings. Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. WE agree with the INSURED named in the Declarations, said Declarations being made a part hereof, in consideration of the payment of the premium, and subject to the limit of liability set forth in the Declarations, and in reliance upon representations made in the application (a copy of which is attached and made a part of this policy), and subject to all of the terms, conditions and exclusions of this policy, as follows: SECTION I -- DEFINITIONS Whenever used in this policy, the following words have these meanings: AUTOMOBILE -- means a land motor vehicle, trailer or semi-trailer designed for travel on public roads, including any attached machinery or equipment. But AUTOMOBILE does not include MOBILE EQUIPMENT. BODILY INJURY -- means BODILY INJURY, disease, disability, shock, mental anguish, mental injury and humiliation, including resulting death. DAMAGES -- means monetary sums, including compensatory and/or punitive damages where permitted by law, for which the INSURED(S) is legally obligated to pay. DEDUCTIBLE -- means the amount shown in the Declarations that the INSURED must contribute to DAMAGES. INSURED CONTRACT-- means: 1. A lease of premises agreement; 2. An elevator maintenance agreement; and 3. That part of any other contract or agreement pertaining to LAW ENFORCEMENT ACTIVITIES under which the INSURED assumes the tort liability of another political subdivision to pay for PERSONAL INJURY, BODILY INJURY or PROPERTY DAMAGE to a third person or organization. Tort liability means liability that would be imposed by law in the absence of any contract or agreement whether expressed or implied. An INSURED CONTRACT does not include that part of any contract or agreement that indemnifies any person or organization for DAMAGE by fire to premises rented or loaned to the INSURED. LAW ENFORCEMENT ACTIVITIES -- means: 1. Those activities conducted by the NAMED INSURED'S Law Enfomement Department or Agency as shown on the Declarations; and 2. Departmentally approved activities that are declared in the application. LOADING OR UNLOADING -- means the handling of property: 1. After it is moved from the place where it is accepted for movement into or onto an aircraft, watercraft or AUTOMOBILE; or 2. While it is in or on an aircraft, watercraft or AUTOMOBILEi or 3. While it is being moved from an aircraft, watercraft or AUTOMOBILE to the place where it is finally delivered; but LOADING OR UNLOADING does not include the movement of property by means of a mechanical device, other than a hand truck, that is not attached to the aircraft, watercraft or AUTOMOBILE. LOSS ADJUSTMENT EXPENSE -- means expenditures including, but not limited to, costs of AIMULW0003 3 2003 1 of 10 ARCHINSURANCE COMPANY investigations, experts, adjustment services, legal services, court costs and other similar expenses of the Company. LOSS ADJUSTMENT EXPENSE shall not include salaries of employees of the Company. MOBILE EQUIPMENT -- means any of the following types of land vehicles including any attached machinery or equipment: Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public road; 2. Vehicles maintained for use solely on or next to promises owned or rented by the NAMED INSURED; 3. Vehicles that travel on crawler troads; 4. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted: a. Power cranes, shovels, loaders, diggers or drills; or b. Road construction or resurfacing equipment such as graders, scrapers or rollers; 5. Vehicles not described in 1., 2., 3., or 4. above that aro not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: a. Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment; or b. Cherry pickers and similar devices used to raise or lower workers; 6. Vehicles not described in 1., 2., 3, or 4. above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not MOBILE EQUIPMENT but will be considered AUTOMOBILE: a. Equipment designed primarily for: (1) Snow romoval; (2) Road maintenance, but not construction or resuffacing; (3) Stroet cleaning; b. Cherry pickers and similar devices mounted on AUTOMOBILE truck chassis and used to raise or lower workers; and c. Air comprossors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment. PERSONAL INJURY-- means: 1. Assault and battery but only for injury neither expected nor intended from the standpoint of the insured. This does not apply to PERSONAL INJURY rosulting from use of roasonable force to protect persons or property; 2. Discrimination; 3. False arrest, detention or imprisonment, or malicious prosecution; 4. False or improper service of process; 5. The publication or utterance of a libel or slander or of other defamatory or disparaging material, or a publication or utterance in violation of an individual's right to privacy; except publications or utterances in the course of or related to advertising, broadcasting or telecasting activities by or on behalf of the INSURED; 6. Violation of civil rights, including, but not limited to, violations of the Federal Civil Rights ACt and similar laws; 7. Wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies by or on behalf of its owner, landlord or lessor. POLICY PERIOD -- means the period of one year following the effective date and hour of this policy, or, if the time between the effective date and the termination of the policy shown on the Declarations is less than one year, such lesser period. POLICY TERRITORY-- means: 1. The United States of America; or International waters or airspace, provided the injury or DAMAGE does not occur in the course of travel or transportation to or from any place not included in 1. above; or 3. All parts of the world if: a. The injury or DAMAGE arises out of a WRONGFUL ACT of an INSURED beyond the territory described in 1. above, who is engaged in LAW ENFORCEMENT ACTIVITIES of the NAMED INSURED; and b. The INSURED'S rosponsibility to pay DAMAGES is determined in a SUIT on the AIMULW0003 3 2003 2 of 10 ARCH INSURANCE COMPANY merits, in the territory described in 1. above, or in a settlement to which WE agree. PROPERTY DAMAGE-- means: 1. Physical injury to or destruction of tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to take place at the time of the physical injury that caused it; or 2. Loss of use of tangible property that has not been physically injured or destroyed, but only if such loss took place at the time of a WRONGFUL ACT. SUIT -- means a civil proceeding in which monetary DAMAGES is alleged because of a WRONGFUL ACT to which this insurance applies. SUIT includes an arbitration or any other alternative dispute resolution proceeding in which such DAMAGES are claimed and to which the INSURED must submit or does submit with OUR consent. SUIT does not include or mean an administrative hearing or proceeding. WRONGFUL ACT -- means any actual or alleged act, error or omission, neglect or breach of duty by the INSURED while conducting LAW ENFORCEMENT ACTIVITIES that results in: 1. PERSONAL INJURY; or 2. BODILY INJURY; or 3. PROPERTY DAMAGE. Continuous or repeated exposure to substantially the same generally harmful conditions shall be considered a single WRONGFUL ACT. SECTION II -- COVERAGES COVERAGE A -- WRONGFUL ACT(S) -- INSURING AGREEMENTS WE will pay those sums that the INSURED becomes legally obligated to pay as DAMAGES because of WRONGFUL ACT(S) to which this insurance applies. This insurance applies only to WRONGFUL ACT(S) that take place during the POLICY PERIOD and within the POLICY TERRITORY. The WRONGFUL ACT(S) must arise out of the performance of the INSURED'S LAW ENFORCEMENT ACTIVITIES or out of the ownership, maintenance or use of premises COVERAGE DEFENSE PAYMENTS designated in the Declarations, including the ways immediately adjoining such premises on land) and all necessary and incidental operations. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under COVERAGE A -- WRONGFUL ACT(S) -- DEFENSE AND SUPPLEMENTARY PAYMENTS. A -- WRONGFUL ACT(S) -- AND SUPPLEMENTARY WE shall have the dght and duty to defend any SUIT against the INSURED even if any of the allegations of the SUIT are groundless, false or fraudulent. WE shall have the sole dght to assign counsel to defend any such suit against the INSURED, and the INSURED agrees and consents to OUR exercise of that sole right. However, WE will have no duty to defend the INSURED against any SUIT seeking damages for WRONGFUL ACT(S) to which this insurance does not apply. WE may make such investigation of any claim or SUIT as WE deem expedient. WE shall not be obligated to pay any claim or judgment otto defend any SUIT after the applicable limit of OUR liability has been exhausted by payment of judgments or settlements. The INSURED shall not, without OUR written consent, make any payment, admit any liability, settle any claim, assume any obligation, or incur any expense including but not limited to LOSS ADJUSTMENT EXPENSE WE shall have the dght, but no duty, to appeal any judgment. WE will pay, in addition to the applicable limit of liability: 1. All expenses WE incur. 2. The cost of bonds to release attachments, but only for bond amounts within the applicable limit of liability. WE do not have to furnish these bonds. 3. All reasonable expenses incurred by the INSURED at OUR request to assist US in the investigation or defense of the claim or SUIT, including actual loss of earnings up to $100 a day because of time off work. Expenses, as used here, do not include salaries of officers or employees of any NAMED INSURED. AIMULW0003 3 2003 3 of 10 ARCHINSURANCECOMPANY 4. All costs taxed against the INSURED in the SUIT. 5. Pre-judgment interest awarded against the INSURED on that part of the judgment WE pay. If WE make an offer to pay the applicable limit of liability and the INSURED refuses to consent to OUR offer, WE will not pay any pta-judgment interest after the date of OUR offer. 6. All interest on the full amount of any judgment that accrues after entry of the judgment and before WE have paid, offered to pay, or deposited in court, the part of the judgment that is within the applicable limit of liability. COVERAGE A -- WRONGFUL ACT(S) -- EXCLUSIONS The following section of this policy restricts coverage. Please read these exclusions very carefully. This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any claim or SUIT made against the INSURED for WRONGFUL ACT(S): 1. Arising from an employment practice of the INSURED, including but not limited to: a. Refusalto employ; or b. Termination of employment; or c. Coercion, demotion, evaluation, reas- signment, discipline, defamation, harassment, humiliation, discrimination, or other employment related practices, policies, acts or omissions; or d. Consequential BODILY INJURY, PROPERTY DAMAGE, or PERSONAL INJURY as a result of (a) through (c) above. This exclusion applies whether the INSURED may be held liable as an employer or in any other capacity and to any obligation to share DAMAGES with or to repay someone else who must pay DAMAGES because of the injury; 2. Arising from the deliberate violation of any federal, state, or local statute, ordinance, rule or regulation committed by or with the knowledge and consent of the INSURED; 3. Arising from fraud or dishonesty of an INSURED; 4. Resulting in any claim for relief or redress in any form other than compensatory DAMAGES, including punitive damages where permitted by law; nor shall WE have any obligation to indemnify the INSURED for any costs, fees, including attorney fees, or expenses that the INSURED shall become obligated to pay as a result of any adverse judgment for injunctive or declaratory relief; however, WE will afford defense to the INSURED for such claims, SUITS, demands or actions, if not otherwise excluded, where payment for compensatory DAMAGES are requested; Arising from the INSURED'S obligation to pay DAMAGES by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for DAMAGES: a. Assumed in any joint powers or mutual law enforcement agreements; or b. Assumed by the INSURED under any INSURED CONTRACT; or c. That the INSURED would have, in the absence of the contract or agreement; Arising from any obligation of the INSURED under a workers compensation, disability benefits or unemployment compensation law, or any similar law; Resulting in BODILY INJURY or PERSONAL INJURY to: a. Any full or part time employee, auxiliary or volunteer police officer, or other law enforcement personnel of the INSURED adsing out of and in the course of employment by the INSURED; or b. The spouse, child, parent, brother or sister of that employee, or auxiliary volunteer law enforcement officer as a consequence of a. above. This exclusion applies: a. Whether the INSURED may be liable as an employer or in any other capacity; and b. To any obligation to share DAMAGES with or repay someone else who must pay DAMAGES because of a WRONGFUL ACT(S). This exclusion does not apply to liability assumed by the INSURED under any INSURED CONTRACT; AIMULW0003 3 2003 4 of 10 ARCHINSURANCE COMPANY 8. Arising from the ownership, maintenance, use, or entrustment to others of any aircraft, AUTOMOBILE or watercraft owned or operated by, or rented or loaned to any INSURED. Use includes operation and LOADING OR UNLOADING. This exclusion does not apply to: a. A watercraft while ashore or on premises owned or rented by an INSURED; b. A watercraft not owned by any INSURED that is: (1) Less than 26 feet long, and (2) Not being used to carry persons or property for a charge; 9. Resulting in PROPERTY DAMAGE to: a. Property that is owned by, rented by, or occupied by any INSURED; b. Premises sold, given away, or abandoned by any INSURED if the PROPERTY DAMAGE arises out of any part of those premises; c. Property loaned to any INSURED; d. Property in the care, custody, and control of any INSURED; e. That particular part of real property on which the INSURED or any contractors or subcontractors working directly or indirectly on the INSURED'S behalf are performing operations, if the PROPERTY DAMAGE arises out of those operations. However, part d. of this exclusion does not apply to personal property held by the INSURED as a result of seizure, confiscation, or while being held as evidence; 10. Resulting in any loss, cost or expense: a. With respect to which an INSURED under the policy is also an INSURED under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters, Nuclear Insurance Association of Canada or any of their successors, or would be an INSURED under any such policy but for its termination upon exhaustion of its limit of liability; or b. Resulting from the HAZARDOUS PROPERTIES of NUCLEAR MATERIAL and with respect to which any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or the INSURED is, or had this policy not been issued would be, entitled to indemnity from the United States of Amedca, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization; or c. Resulting from the HAZARDOUS PROPERTIES of NUCLEAR MATERIAL, if: (1) The NUCLEAR MATERIAL is at any NUCLEAR FACILITY owned by, or operated by or on behalf of, an insured or has been discharged or dispersed therefrom; (2) The NUCLEAR MATERIAL is contained in SPENT FUEL or WASTE at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an INSURED; or (3) The WRONGFUL ACT arises out of the furnishing by an INSURED of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any NUCLEAR FACILITY. As used in this exclusion, HAZARDOUS PROPERTIES include radioactive, toxic or explosive properties; NUCLEAR MATERIAL means SOURCE MATERIAL, SPECIAL NUCLEAR MATERIAL or BY-PRODUCT MATERIAL; SOURCE MATERIAL, SPECIAL NUCLEAR MATERIAL, and BY-PRODUCT MATERIAL have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; SPENT FUEL means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a NUCLEAR REACTOR; WASTE means any waste material containing BY-PRODUCT MATERIAL other than the tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed pdmadly for its SOURCE MATERIAL content, and resulting from the operation by any person or organization of any NUCLEAR FACILITY included under the first AIMULW0003 3 2003 5 of 10 ARCHINSURANCE COMPANY two paragraphs of the definition of NUCLEAR FACILITY. NUCLEAR FACILITY means: a. Any NUCLEAR REACTOR b. Any equipment or device designed or used for separating the isotopes of uranium or plutonium, or processing or utilizing SPENT FUEL, or handling, processing or packaging WASTE; c. Any equipment or device used for the processing, fabricating or alloying of SPECIAL NUCLEAR MATERIAL if at any time the total amount of such matedal in the custody of the insured at the promises where such equipment or device is located consists of or contains more than 25 grams of plutonium, or uranium 233 or any combination theroof, or moro than 250 grams of uranium 235; d. Any structuro, basin, excavation, premises or place proparod or used for the storage or disposal of WASTE; And includes the site on which any of the forogoing is located, all operations conducted on such site and all promises used for such operations; NUCLEAR REACTOR means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material. 11. Resulting in any loss, cost, or expense, in whole or in part for any of the following: a. The actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants at any time; b. Any request, demand or order that any INSURED or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of pollutants; c. Any claim or SUIT by or on behalf of a government authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, or neutralizing, or in any way responding to, or assessing the effects of pollutants. POLLUTANTS mean any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, lead, asbestos, acids, alkalis, chemicals and waste. Waste includes, but is not limited to, materials to be recycled, reconditioned or reclaimed, and liquid or solid material carried off with groundwater in sewers or drains; COVERAGE B -- MEDICAL PAYMENTS -- INSURING AGREEMENTS WE will pay medical expenses as described below for BODILY INJURY caused by an accident: 1. On premises YOU own or rent; or 2. On ways next to premises YOU own or rent; or 3. Because of YOUR operations; provided that: 1. The accident takes place in the POLICY TERRITORY and during the POLICY PERIOD; 2. The expenses are incurred and reported to US within one year of the date of the accident; and 3. The injured person submits to an examination, at OUR expense, by physicians of OUR choice as often as WE reasonably require. WE will make these payments regardless of fault. These payments will not exceed the applicable limit of insurance as specified in Item 3. of the Declarations. WE will pay reasonable expenses for: 1. First aid at the time of an accident; 2. Necessary medical, surgical, x-ray and dental services, including prosthetic devices; and 3. Necessary ambulance, hospital, professional nursing and funeral services. COVERAGE B- MEDICAL PAYMENTS- EXCLUSIONS WE will not pay expenses for BODILY INJURY: I. To any INSURED; 2. To a person hired to do work for or on behalf of any INSURED or a tenant of any INSURED; 3. To a person injured on that part of premises YOU own or rent that the person normally occupies; 4. To a person, whether or not an employee of any INSURED, if benefits for the BODILY INJURY are payable or must be provided under a AIMULW0003 3 2003 6 of 10 ARCH INSURANCE COMPANY workers' compensation or disability benefits law or a similar law; 5. To a person injured while taking part in athletics; 6. To any inmate, patient or prisoner who is being treated, cared for, detained or imprisoned in any of the facilities owned and operated by YOU. SECTION III -- WHO IS AN INSURED 1. The term INSURED as used herein means the entity stated in the Declarations as the NAMED INSURED and except as excluded by endorsement to this policy: a. The police department, sheriffs department, law enforcement department or any other law enforcement agency of the NAMED INSURED; and b. All full or part-time employees of the NAMED INSURED and all persons who were, now are or shall be lawfully elected, appointed or employed officials of the NAMED INSURED with respect to liability arising out of LAW ENFORCEMENT ACTIVITIES; and c. YOUR employee(s) while engaged in law enforcement or security duties for others, but only to the extent such is authorized by YOU and then only while acting within the scope of such duties; and d. All auxiliary and volunteer law enforcement officers who serve under the direction and control of the NAMED INSURED'S Law Enforcement Department or Agency; and e. Any persons providing services to the NAMED INSURED under any mutual aid, joint power or similar agreement; and f. The estates, heirs, legal representative or assigns of deceased persons who were INSURED(S) at the time of a WRONGFUL ACT upon which a SUIT is based. 2. With respect to MOBILE EQUIPMENT registered in YOUR name under any motor vehicle registration law, any person is an INSURED while driving such equipment along a public highway with YOUR permission. Any other person or organization responsible for the conduct of such person is also an INSURED, but only with respect to liability arising out of the operation of the equipment and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an INSURED with respect to: a. BODILY INJURY or PERSONAL INJURY to a volunteer worker or co-employee of the person driving the equipment; or b. PROPERTY DAMAGE to property owned by, rented to, in the charge of or occupied by YOU or the employer of any person who is an INSURED under this provision. 3. No person or organization is an INSURED with respect to the conduct of any current or past partnership or joint venture that is not shown as a NAMED INSURED in the Declarations. SECTION IV-- LIMITS OF LIABILITY Regardless of the number of INSURED(S) under this policy, persons or organizations who sustain DAMAGE payable under this policy, and/or SUIT(S) brought under this policy, OUR liability is limited as follows: 1. The ANNUAL AGGREGATE LIMIT shown in item 3. of the Declarations is the most WE will pay for the sum of: a. DAMAGES under Coverage A; and b. Medical expenses under Coverage B; for each POLICY PERIOD. 2. Subject to 1. above, the EACH WRONGFUL ACT LIMIT shown in Item 3. of the Declarations is the most WE will pay for the sum of: a. DAMAGES under Coverage A; and b. Medical expenses under Coverage B because of all BODILY INJURY, PROPERTY DAMAGE and PERSONAL INJURY arising out of any one WRONGFUL ACT. 3. Subject to 2. above, the Medical Expense Limit is the most WE will pay under Coverage B for all medical expenses because of BODILY INJURY sustained by any one person. 4. Subject to the limits of liability stated above, WE will only be liable to pay for DAMAGES in excess of the DEDUCTIBLE shown in Item 4. of the Declarations for each and every WRONGFUL ACT. In the event WE expend funds for DAMAGES on behalf of the INSURED, WE will be reimbursed for such expenditures up to the amount of the DEDUCTIBLE shown in Item 4. of the Declarations. Upon written demand by US, AIMULW0003 3 2003 7 of 10 ARCHINSURANCECOMPANY the amount of such DEDUCTIBLE will be payable to US within thirty (30) days. 5. Claims based on or adsing out of the same act or interrelated acts of one or more INSURED(S) shall be considered a single WRONGFUL ACT and only one DEDUCTIBLE shall be applicable. The limits of this policy apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the POLICY PERIOD shown in the Declarations, unless the POLICY PERIOD is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the preceding period for purposes of determining the limits of liability. SECTION V -- CONDITIONS 1. ASSIGNMENT. Assignment of interest under this policy shall not bind US unless OUR consent is first endorsed hereon. 2. AUDITS, INSPECTIONS AND SURVEYS. WE have the right, but are not obligated to: a. Perform a premium audit in accordance with OUR rules and rates. (1) If the premium shown in this Coverage Part is indicated as advance premium it is a deposit premium only. At the close of each audit period WE will compute the earned premium for that period. Audit premiums are due and payable on notice to the NAMED INSURED. If the sum of the advance and audit premiums paid for the policy term is greater than the premium, WE will return the excess to the NAMED INSURED. (2) If the premium shown in this Coverage Part is indicated as non-adjustable, no audit will be necessary. WE reserve the right however to inspect the INSURED'S records. The NAMED INSURED must keep records of the information WE need for premium computation and send US copies at such times as WE may request; b. Make inspections and surveys at any time; c. Give the INSURED reports on the conditions WE find; and d. Recommend changes. Any premium audits, inspections, surveys, reports or recommendations are related only to insurability and the premiums to be charged. WE do not make safety inspections. WE do not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. WE do not warrant that conditions: a. Are safe or healthful; or b. Comply with laws, regulations, codes or standards. 3. BANKRUPTCY OR INSOLVENCY. The bankruptcy or insolvency of the INSURED shall not relieve US of any of OUR obligations hereunder. 4. CANCELLATION. This policy may be cancelled by the first NAMED INSURED by surrendering the policy to US or any of OUR authorized agents, or by mailing to US written notice stating when thereafter the cancellation shall be effective. This policy may be cancelled by US by mailing to the first NAMED INSURED, at the last mailing address known to US, written notice stating when, not less than ten (10) days for non-payment of premium, or sixty (60) days for any other valid reason, such cancellation shall be effective. The mailing of notice shall be sufficient proof of notice. The time of surrender or the effective date and hour of cancellation stated in the notice shall become the end of the POLICY PERIOD. Delivery of such written notice either by the NAMED INSURED or by US shall be equivalent to mailing. If this policy shall be cancelled by the first NAMED INSURED, WE shall retain the customary short rate proportion of the premium hereon. Payment or tender of any unearned premium by US shall not be a condition precedent to the effectiveness of cancellation, but such payment shall be made as soon as practical. If the period of limitation, relating to the giving of notice is prohibited or made void by any law controlling the construction thereof, such period shall be deemed to be amended to be equal to the minimum period or limitation of such law. 5. CHANGES. Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this policy or estop US from asserting any right under the terms of this policy, nor shall the terms of this policy be waived or changed, AIMULW0003 3 2003 8 of 10 ARCHINSURANCE COMPANY except by endorsement issued and made a part of this policy. 6. CONFLICTING LAW: Terms of this policy that are in conflict with the law of the state wherein this policy is issued are hereby amended to conform to such law. 7. ENTITY AUTHORIZATION CLAUSE. By acceptance of this policy, the first NAMED INSURED agrees to act on behalf of each INSURED with respect to the giving and receiving of notice of claim, cancellation or nonrenewal, the payment of premium that may become due under this policy; and all INSUREDS agree that the first NAMED INSURED shall act on their behalf. 8. EXAMINATION OF BOOKS AND RECORDS. WE may examine and audit the INSURED'S books and records as they relate to this policy, at any time dudng the POLICY PERIOD, and up to three years afterward. 9. INSURED'S DUTIES IN THE EVENT OF A WRONGFUL ACT, CLAIM OR SUIT. a. In the event of a WRONGFUL ACT, wdtten notice containing particulars sufficient to identify the INSURED and also reasonably obtainable information with respect to the time, place and circumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the INSURED to US or any of OUR authorized agents as soon as reasonably possible. b. If SUIT is brought against the INSURED, the INSURED shall immediately forward to US every demand, notice, summons or other process received by the INSURED. c. In the event of any WRONGFUL ACT payable hereunder, notice to US shall be given to the person or firm(s) shown under Item 6. of the Declarations. Notice shall be deemed to be received if sent by prepaid mail properly addressed. d. The INSURED shall cooperate with US and, at OUR request, consent to being examined and questioned by OUR representative, under oath if necessary, attend hearings, depositions and trials and shall assist in effecting settlement, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of SUIT(S), as well as in the giving of a written statement or 10. 11. 12. statements to OUR representatives and defense. In the event of a WRONGFUL ACT occurring that is likely to involve US hereunder, the INSURED shall not make any payment, assume any liability or incur any expense, including but not limited to LOSS ADJUSTMENT EXPENSE, without OUR consent first being obtained. WE shall have full discretion in the handling of any claim, and the INSURED shall give full information and assistance as WE may reasonably require. LEGAL ACTION AGAINST US. No person or organization has a right under this policy: a. To join US as a party or otherwise bring US into a SUIT asking for damages from an INSURED; or b. To sue US unless there has been compliance with all policy terms. A person or organization may sue US to recover on an agreed settlement or on a final judgment against an INSURED obtained after an actual trial; but WE will not be liable for LOSSES that are not payable under the terms of this policy or that are in excess of the applicable limit of liability. An agreed settlement means a settlement and release of liability signed by US, the INSURED and the claimant orthe claimant's legal representative. NONRENEWAL. If WE elect not to renew this policy, WE will mail to the NAMED INSURED at the address shown in the Declarations, written notice of such nonrenewal. Such written notice will be mailed not less than (60) days prior to the expiration date of this policy. If mailed, proof of mailing will be sufficient proof of notice. OTHER INSURANCE. The insurance afforded by this policy is primary insurance, except if other valid and collectible insurance is available to the INSURED for a claim presented or when stated to apply in excess of or contingent upon the absence of other insurance. When this insurance is primary and the INSURED has other insurance that is stated or found to be applicable to the loss on an excess or contingent basis, the amount of OUR liability under this policy shall not be reduced by the existence of such other insurance. When this insurance is excess, WE will have no duty under Coverage A to defend any claim or SUIT that any other insurer has a duty to defend. AIMULW0003 3 2003 9 of 10 ARCHINSURANCECOMPANY If no other insurer defends, WE will undertake to do so, but WE will be entitled to the INSURED'S rights against all other insurers. When this insurance is excess over other insurance, WE will pay only OUR share of the amount of the loss, if any, that exceeds the sum of: a. The total amount that all such other insurance would pay for the loss in the absence of this insurance; and b. The total of all DEDUCTIBLE and self- insured amounts under all such other insurance. When both this insurance and other insurance apply to the loss on the same basis, whether pdmary, excess or contingent, WE shall not be liable under this policy for a greater proportion of the loss than that stated in the applicable contribution provision below: a. CONTRIBUTION BY EQUAL SHARES. If all other valid and collectible insurance provides for contribution by equal share, WE will follow this method also. Under this provision, each insurer contributes equal amounts until it has paid its applicable limit of liability or none of the loss remains, whichever comes first. b. CONTRIBUTION BY LIMITS. If any of the other insurance does not provide for contribution by equal shares, WE will contribute by limits. Under this provision, each insurer's share is based on the ratio of its applicable limit of liability to the total applicable limits of liability of all insurers. The insurance afforded by this policy for WRONGFUL ACT(S) arising out of the ownership, maintenance or use of premises shall apply as excess over any other valid and collectible insurance available to the INSURED whether such insurance is stated to be pdmary, contributory, excess, contingent or otherwise, unless written only as specific excess insurance over the limits of liability provided by this policy. 13, REPRESENTATION. By accepting this policy, YOU agree: a. The statements in the Declarations are accurate and complete; b. Those statements are based upon representations YOU made to US; and c. WE have issued this policy in reliance upon YOUR representations. 14. SEPARATION OF INSUREDS. Except with respect to the limits of liability and any rights or duties specifically assigned in this policy to the first NAMED INSURED, this insurance applies: a. As if each NAMED INSURED were the only NAMED INSURED; and b. Separately to each INSURED against whom claim is made or SUIT is brought. 15. SETTLEMENT. WE shall not settle any SUIT without the INSURED'S consent. If, however, the INSURED refuses to consent to any settlement offer received by US, and shall elect to contest the claim or continue any legal proceedings in connection with such claim, OUR liability to indemnify and/or defend the INSURED for the claim shall not exceed the amount for which the claim could have been so settled plus LOSS ADJUSTMENT EXPENSE incurred up to the date of such refusal after a written tender of such an offer has been made by US to the INSURED. 16. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US. If the INSURED has rights to recover all or part of any payment WE have made under this policy, those rights are transferred to US. The INSURED must do nothing after loss to impair them. At OUR request, the INSURED will bring SUIT or transfer those dghts to US and help US enforce them. AIMULW0003 3 2003 10 of 10 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION -- ASBESTOS This endorsement modifies insurance provided under the following: LAW ENFORCEMENT LIABILITY COVERAGE FORM The following EXCLUSION is added to SECTION II -- COVERAGES, COVERAGE A -- WRONGFUL ACT(S) -- EXCLUSIONS: This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any claim or SUIT made against the INSURED for WRONGFUL ACT(S) arising from BODILY INJURY, PERSONAL INJURY, or PROPERTY DAMAGE resulting from: 1. Inhaling, ingesting or prolonged physical exposure to asbestos or goods or products containing asbestos; or 2. The use of asbestos in construction or manufacturing any good, product or structure; or 3. The removal of asbestos from any good, product or structure; or 4. The manufacture, sale, transportation, storage or disposal of asbestos or goods or products containing asbestos. The coverage afforded by the policy does not apply to payment for the investigation or defense of any loss, injury or damage or any cost, fine or penalty or for any expense of claim or suit related to any of the above. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMULW0018 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAR OR TERRORISM EXCLUSION This endorsement modifies insurance provided under the following: LAW ENFORCEMENT LIABILITY COVERAGE FORM This following EXCLUSION is added to SECTION II - COVERAGES, COVERAGE A - WRONGFUL ACT(S) -- EXCLUSIONS: WAR OR TERRORISM This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any claim or SUIT made against the INSURED for WRONGFUL ACT(S) arising, direcfiy or indirectly, out of: 1. War, including undeclared or civil war; or 2. Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or 3. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these; or 4. TERRORISM, including any action taken in hindering or defending against an actual or expected incident of TERRORISM regardless of any other cause or event that contributes concurrently or in any sequence to the injury or damage. However, with respect to TERRORISM, this exclusion only applies if one or more of the following are attributable to an incident of TERRORISM: 1. The total of insured damage to all types of property exceeds $25,000,000. In determining whether the $25,000,000 threshold is exceeded, we will include all insured damage sustained by property of all persons and entities affected by the TERRORISM and business interruption losses sustained by owners or occupants of the damaged property. For the purpose of this provision, insured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the application of any terrorism exclusions; or 2. Fifty or more persons sustain death or serious physical injury. For the purposes of this provision, serious physical injury means: a. Physical injury that involves a substantial risk of death; or b. Protracted and obvious physical disfigurement; or c. Protracted loss of or impairment of the function of a bodily member or organ; or 3. The TERRORISM involves the use, release or escape of nuclear materials, or directly or indirectly results in nuclear reaction or radiation or radioactive contamination; or AIMULW0021 3 2003 Page 1 of 2 Includes copyrighted material of insurance Services Office, ]nc., with its permission. Copyright, Insurance Services Office, Inc., 2001 ARCH INSURANCE COMPANY 4. The TERRORISM is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or 5. Pathogenic or poisonous biological or chemical materials are released~ and it appears that one purpose of the TERRORISM was to release such materials. Paragraphs '1. and 2., immediately preceding, describe the thresholds used to measure the magnitude of an incident of TERRORISM and the circumstances in which the threshold will apply for the purpose of determining whether the Terrorism Exclusion will apply to that incident. When the Terrorism Exclusion applies to an incident of TERRORISM, there is no coverage under this Coverage Part. In the event of any incident of TERRORISM that is not subject to the Terrorism Exclusion, coverage does not apply to any loss or damage that is otherwise excluded under this Coverage Part. Multiple incidents of TERRORISM which occur within a seventy-two hour period and appear to be carried out in concert or to have a related purpose or common leadership shall be considered to be one incident. B. The following definition is added to SECTION I -- DEFINITIONS: TERRORISM means activities against persons, organizations or property of any nature: 1. That involve the following or preparation for the following: a. Use or threat of force or violence; or b. Commission or threat of a dangerous act; or c. Commission or threat of an act that interferes with or disrupts an electronic, communication, information, or mechanical system; and 2. When one or both of the following applies: a. The effect is to intimidate or coerce a government or the civilian population or any segment thereof, or to disrupt any segment of the economy; or b, It appears that the intent is to intimidate or coerce a government, or to further political, ideological, religious, social or economic objectives or to express (or express opposition to) a philosophy or ideology. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMULW0021 3 2003 Page 2 of 2 ]ncludes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 2001 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. A FUNGI OR BACTERIA EXCLUSION This endorsement modifies insurance provided under the following: LAW ENFORCEMENT LIABILITY COVERAGE FORM The following EXCLUSION is added to SECTION II - COVERAGES, COVERAGE A - WRONGFUL ACT(S) - EXCLUSIONS: FUNGI OR BACTERIA 1. This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any claim or SUIT made against the INSURED for WRONGFUL ACT(S) resulting in: a. BODILY INJURY or PROPERTY DAMAGE which would not have occurred, in whole or in part, but for the actual, alleged or threatened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any FUNGI or bacteria on or within a building or structure, including its contents, regardless of whether any other cause, event, material or product contributed concurrently or in any sequence to such injury. b. PERSONAL INJURY which would not have taken place, in whole or in part, but for the actual, alleged or threatened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any FUNGI or bacteria on or within a building or structure, including its contents, regardless of whether any other cause, event, material or product contributed concurrantly or in any sequence to such injury. 2. The coverage afforded by this policy does not apply to any loss, cost or expenses arising out of the abating, testing for, monitoring, cleaning p, removing, containing, treating, detoxifying, neutralizing, remediating or disposing of, or in any way responding to, or assessing the effects of, FUNGI or bacteria, by any INSURED or by any other person or entity. B. The following definition is added to the DEFINITIONS Section: FUNGI means any type or form of fungus, including mold or mildew and any mycotoxins, spores, scents or byproducts produced or released by fungi. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMULW0022 3 2003 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, insurance Services Office, Inc., 2001 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCYAND CODE POLICY NUMBER MO, DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NON-STACKING OF LIMITS ENDORSEMENT (Two Or More Coverage Forms, Coverage Parts Or Policies Issued By Us) This endorsement modifies insurance provided under the following: EDUCATOR'S LEGAL LIABILITY COVERAGE LAW ENFORCEMENT LIABILITY COVERAGE PUBLIC OFFICIALS LIABILITY COVERAGE The following is added to the CONDITIONS section: NON-STACKING OF LIMITS If any Coverage Form, Coverage Part or policy issued to YOU by US or any company affiliated with US apply to the same claim for damages, the maximum Limit of Insurance for Liability Coverage under all of the Coverage Forms, Coverage Parts or policies shall not exceed the highest applicable Limit of Insurance Available under any one Coverage Form, Coverage Part or policy. This Condition does not apply to any Coverage Form, Coverage Part or policy issued by US or an affiliated company specifically to apply as excess insurance over this policy. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUIL0023 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A,M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. INCIDENTAL PROFESSIONAL LIABILITY ENDORSEMENT This endorsement modifies insurance provided under the following: LAW ENFORCEMENT LIABILITY COVERAGE FORM The definition of BODILY INJURY is amended to include injury arising out of the rendering of or failure to render, during the policy pedod, (a) medical or nursing services or treatment or the furnishing of food or beverages in connection therewith, or (b) the furnishing or dispensing of drugs or medical supplies or appliances. The coverage provided by this endorsement does not apply to: 1. Expenses incurred by the INSURED for first-aid to others at the time of an accident and the SUPPLEMENTARY PAYMENTS provision is amended accordingly; 2. Liability arising out of any personal act or omission of a professional nature by a medical doctor or dentist. In addition, SECTION III--WHO IS AN INSURED is amended to include the following: 4. All medical employees of the NAMED INSURED, whether full-time, part-time, or volunteer, while acting within the scope of duties as such, except medical doctors and dentists. ALL OTHER TERMS ,AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMULW0010 3 2003 ITEM 1. ITEM2. ITEM 3. ITEM 4. ITEM 5. ITEM 6, ARCH INSURANCE COMPANY PUBLIC OFFICIALS LIABILITY COVERAGE PART - SUPPLEMENTAL DECLARATIONS THIS SUPPLEMENTAL DECLARATIONS FORMS A PART OF POLICY NO. KMPKG00071 RETROACTIVE DATE: This insurance does not apply to WRONGFUL ACTS which occur before the RETROACTIVE DATE shown above. LIMIT OF LIABILITY ANNUAL AGGREGATE LIMIT $ 1,000,000 EACH WRONGFUL ACT LIMIT $ 1,000,000 DEDUCTIBLE $ 5,000 PREMIUM $ INC DESIGNEE OF PUBLIC ENTITY TO REPORT CLAIMS AND RECEIVE NOTICES: ITEM 7. NOTICE OF CLAIM SHALL BE GIVEN TO: Midwest Claims Service 1700 Opdyke Court Auburn Hills, MI 48326 ITEM 8. FORM NUMBER OF COVERAGE FORMS AND ENDORSEMENTS THAT ARE PART OF THIS COVERAGE PART AND MADE PART OF THIS POLICY AT TIME OF ISSUE (other than applicable forms and endorsements shown elsewhere in the policy): Refer to AIMUIL0002 (32003) THIS SUPPLEMENTAL DECLARATIONS AND THE COMMON POLICY DECLARATIONS, TOGETHER WITH THE COVERAGE FORM(S) AND ENDORSEMENTS COMPLETE THE ABOVE NUMBERED POLICY. COMMON POLICY CONDITIONS THE COMMON POLICY CONDITIONS DO NOT APPLY TO THIS COVERAGE PART. USAGE OF TERMS WHEN WE USE THE WORD DECLARATIONS IN THIS COVERAGE PART, WE MEAN THIS DECLARATIONS OR THE COMMON POLICY DECLARATIONS. AIMUPC0003 (3 2003) ARCHINSURANCE COMPANY PUBLIC OFFICIALS LIABILITY INSURANCE THIS IS A CLAIMS MADE POLICY PLEASE READ THIS POLICY CAREFULLY Throughout this policy, the words YOU, YOUR and NAMED INSURED refer to the entity identified as the NAMED INSURED in the Declarations. The words INSURED or INSUREDS refer to any person or entity qualifying as an INSURED under SECTION Ill--WHO IS AN INSURED. The words WE, US, OUR and COMPANY refer to the Company stated in the Declarations as providing this insurance. Other words and phrases that appear in boldface print have special meanings. Refer to SECTION I~EFINITIONS and other provisions of this policy for such meanings. Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. WE agree with the INSURED named in the Declarations, said Declarations being made a part hereof, in consideration of the payment of the premium, and subject to the limit of liability set forth in the Declarations, and in reliance upon representations made in the application (a copy of which is attached and made a part of this policy), and subject to all of the terms, conditions and exclusions of this policy, as follows: SECTION I -- DEFINITIONS Whenever used in this policy, the following words have these meanings: CLAIM -- means written demand from any party intending to hold an INSURED responsible for damages resulting from a WRONGFUL ACT covered by this policy. CLAIM also means an INSURED'S knowledge of circumstances that could reasonably be expected to give rise to such notice. DEDUCTIBLE -- means the amount shown in Item 4. of the Declarations that the INSURED must contribute to LOSS. EMPLOYEE -- means any person who has been hired to pedorm services either on a full-time or part- time basis by and for the Public Entity and to whom wages or salary are paid and on whose behalf federal or local taxes are withheld. EMPLOYMENT BENEFITS -- means wages, salaries, bonuses, incentives, perquisites, fringe benefits, or other payments, entitlements or benefits owed to any EMPLOYEE as a result of an EMPLOYMENT CONTRACT. EMPLOYMENT CONTRACT -- means any contract of employment between the Public Entity and an EMPLOYEE. LOSS -- means any compensatory monetary amount, including punitive damages where permitted by law, for which the INSURED(S) is legally obligated to pay as a result of WRONGFUL ACT(S) covered by this policy and shall include, but not be AIMUPC0004 3 2003 1 of 11 ARCH INSURANCE COMPANY limited to, judgments and settlements. LOSS shall not include: 1. Criminal or civil fines or penalties; 2. Liquidated damages as provided under a contract or statute; 3. Return of taxes, assessments, penalties, fines and/or fees; The salaries, wages or overhead expenses of any INSURED, or other official, EMPLOYEE or member or officer of the Public Entity, or any governmental body, in connection with the investigation and/or defense of CLAIMS; Matters that may be deemed uninsurable under the law pursuant to which this policy shall be construed; Costs of investigation and defense of CLAIMS, including attorneys' fees and expenses, costs of appeal bonds, and costs taxed against the INSURED where another entity or insurer is obligated to defend or reimburse the INSURED for such costs; EMPLOYMENT BENEFITS owed as a result of a wdtten EMPLOYMENT CONTRACT that is not the result of a collective bargaining agreement. LOSS ADJUSTMENT EXPENSE -- means payments allocated to a specific CLAIM or SUIT for its investigation, settlement, or defense, including attorney fees and all other litigation expenses. LOSS ADJUSTMENT EXPENSE shall not include salaries and expenses of OUR EMPLOYEES or YOUR EMPLOYEES. POLICY PERIOD -- means the period of one year following the effective date and hour of this policy or anniversary thereof, or if time between the effective date or any anniversary and the termination of this policy is less than one year, such lesser period. POLICY TERRITORY---means: 1. The United States of America; or International waters or airspace, provided the injury or LOSS does not occur in the course of travel or transportation to or from any place not included in 1. above; or 3. All parts of the world if: The injury or LOSS arises out of a WRONGFUL ACT of an INSURED beyond the territory described in 1. above, who is engaged in the NAMED INSURED'S business activities; and The INSURED'S responsibility to pay LOSS is determined in a SUIT on the medts, in the territory described in 1. above, or in a settlement to which WE agree. PROPERTY DAMAGE -- means: Physical injury to or destruction of property, tangible or intangible, including all resulting loss of use of that property. All such loss of use shall be deemed to take place at the time of the physical injury that caused it; or Loss of use of property, tangible or intangible, that has not been physically injured or destroyed, but only if such LOSS took place at the time of a WRONGFUL ACT. RETROACTIVE DATE -- means the date and hour shown in Item 2. of the Declarations and no coverage is afforded by the policy for WRONGFUL ACT(S) committed by the INSURED pdor to this date even if the first notice of claim is received during the POLICY PERIOD. SUIT -- means a civil proceeding in which monetary LOSS is alleged because of a WRONGFUL ACT to which this insurance applies. SUIT includes an arbitration or any other alternative dispute resolution proceeding in which such LOSS is claimed and to which the INSURED must submit or does submit with OUR consent. SUIT does not include or mean an administrative hearing or proceeding. VOLUNTEER -- means any person whose services are uncompensated and whose activities are directed and supervised by, and for the benefit of, the Public Entity. Volunteer does not include any person performing services which are ordered by, connected with, or supervised by any court, penal or law enforcement official or institution. WRONGFUL ACT(S) ~eans: Any alleged or actual: 1. Act, error, misstatement, misleading statement, or omission of an INSURED constituting a AIMUPC0004 3 2003 2 of 11 ARCHINSURANCE COMPANY breach of a duty imposed by law or a breach of an EMPLOYMENT CONTRACT; or 2. Violation of any civil rights protected by federal law; or 3. Violation of any state civil rights law; that arises out of the discharge of duties for the NAMED INSURED, individually or collectively. SECTIONII--COVERAGES INSURING AGREEMENTS WE will pay on behalf of the INSURED all LOSS that the INSURED shall be legally obligated to pay resulting from a WRONGFUL ACT but only with respect to CLAIMS first made against the INSURED during the POLICY PERIOD. The WRONGFUL ACT(S) must occur within the POLICY TERRITORY. DEFENSE AND SUPPLEMENTARY PAYMENTS WE shall have the right and duty to select counsel and to defend any CLAIM or SUIT against the INSURED seeking damages for LOSS even if any of the allegations of the SUIT are groundless, false or fraudulent. WE shall have the sole right to assign counsel to defend any such suit against the INSURED, and the INSURED agrees and consents to OUR exercise of that sole right. However, WE will have no duty to defend the INSURED against any CLAIM or SUIT seeking damages for WRONGFUL ACT(S) to which this insurance does not apply. WE may make such investigation of any CLAIM or SUIT as WE deem expedient. WE shall not be obligated to pay any CLAIM or judgment or to defend any SUIT or pay any fees, costs or expenses after the applicable limit of OUR liability has been exhausted by payment of judgments or settlements. WE shall not settle any CLAIM without the written consent of the INSURED. If, however, the INSURED refuses to consent to a settlement recommended by US and elects to contest the CLAIM or continue legal proceedings in connection with such CLAIM, OUR liability for the CLAIM shall not exceed the amount for which the CLAIM could have been settled, including LOSS ADJUSTMENT EXPENSES incurred, with the INSURED'S consent up to the date of such refusal, or the applicable limit of liability, whichever is less. The INSURED shall not, without OUR written consent, make any payment, admit any liability, settle any CLAIM, assume any obligation, or incur any expense, including but not limited to, LOSS ADJUSTMENT EXPENSE. WE shall have the right, but no duty, to appeal any judgment. WE will pay, in addition to the applicable limit of liability: 1. All expenses WE incur; 2. All costs taxed against the INSURED in the SUIT; 3. All reasonable expenses incurred by the INSURED at OUR request to assist US in the investigation or defense of the CLAIM or SUIT, including actual loss of earnings up to $100 a day because of time off work. Expenses, as used here, do not include salaries of officers or EMPLOYEES of any NAMED INSURED, 4. Pre-judgment interest awarded against the INSURED on that pad of the judgment WE pay. if WE make an offer to pay the applicable limit of insurance and the INSURED refuses to consent to OUR offer, WE will not pay any pre- judgment interest after the date of OUR offer; 5. All interest on the full areount of any judgment that accrues after entry of the judgment and before WE have paid, offered to pay, or deposited in court, the part of the judgment that is within the applicable limit of liability. 6. The cost of bonds to release attachments and appeal bonds required in any SUIT defended by US but only for bond amounts within the applicable limit of insurance. WE do not have to furnish these bonds. EXCLUSIONS The following section of this policy restricts coverage. Please read these exclusions very carefully. AIMUPC0004 3 2003 3 of 11 ARCH INSURANCE COMPANY This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any CLAIM or SUIT made against the INSURED: 1. Based upon or attributable to the INSURED gaining any profit, advantage or remuneration to which the INSURED is not entitled; 2. Brought about or contributed to by fraud, dishonesty, or bad faith of an INSURED; For any LOSS whether direct, indirect or consequential, arising from or caused by bodily injury, sickness, emotional distress, mental anguish, humiliation, disease or death of any person or for LOSS to or destruction of any property, tangible or intangible, including diminution of value or loss of use; For false arrest, detention or imprisonment, libel, slander, or other defamatory or disparaging material, discrimination, unless insurance thereof is prohibited by law, wrongful eviction from, wrongful entry into or invasion of the right of pdvate occupancy of a room, dwelling or premises that a person occupies by or on behalf of its owner, landlord or lessor, assault, battery, malicious prosecution or false or improper service of process; Arising from the activities of any law enforcement agency or law enforcement personnel, including the operation of adult and juvenile detention facilities; 6. As a result of strikes, riots or civil commotion; Based upon or arising out of any activity for which the INSURED is acting in a fiduciary capacity, including, but not limited to, the administration of any employment benefit plan, including any CLAIM based upon or adsing from the Employee Retirement Income Security Act of 1974 (ERISA) and subsequent amendments or any similar federal, state or local law or regulation; Resulting in any CLAIM or SUIT seeking relief or redress in any form other than compensatory LOSS; including punitive damages where permitted by law; nor shall WE have any obligation to indemnify the INSURED for any 10. costs, fees, including attorney fees, or expenses that the INSURED shall become obligated to pay as a result of any adverse judgment for injunctive or declaratory relief; however, WE will afford defense to the INSURED for such CLAIM or SUIT, if not otherwise excluded, where payment for compensatory LOSS is requested; Arising from a taking that involves or is in any way related to the principles of eminent domain, adverse possession, dedication by adverse use, inverse condemnation, or condemnation proceedings, or by whatever name used, whether such LOSS is made directly against any INSURED or by virtue of any agreement entered into by or on behalf of any INSURED; Resulting in any LOSS, cost, or expense, in whole or in part for any of the following: The actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants at any time; Any request, demand or order that any INSURED or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of pollutants; Any CLAIM or SUIT by or on behalf of a government authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, or neutralizing, or in any way responding to, or assessing the effects of pollutants. POLLUTANTS mean any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, lead, asbestos, acids, alkalis, chemicals, electro magnetic radiation and waste. Waste includes, but is not limited to, materials to be recycled, reconditioned or reclaimed, and liquid or solid material carried off with groundwater in sewers or drains; 11. Resulting in any LOSS, cost or expense: With respect to which an INSURED under the policy is also an INSURED under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability AIMUPC0004 3 2003 4 of 11 ARCH INSURANCE COMPANY Underwriters, Nuclear Insurance Association of Canada or any of their successors, or would be an INSURED under any such policy but for its termination upon exhaustion of its limit of liability; or b. Resulting from the HAZARDOUS PROPERTIES of NUCLEAR MATERIAL and with respect to which any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or the INSURED is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization; or c. Resulting from the HAZARDOUS PROPERTIES of NUCLEAR MATERIAL, if: (1) The NUCLEAR MATERIAL is at any NUCLEAR FACILITY owned; by, or operated by or on behalf of, an insured or has been discharged or dispersed therefrom; (2) The NUCLEAR MATERIAL is contained in SPENT FUEL or WASTE at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an INSURED; or (3) The WRONGFUL ACT arises out of the furnishing by an INSURED of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any NUCLEAR FACILITY. As used in this exclusion, HAZARDOUS PROPERTIES include radioactive, toxic or explosive properties; NUCLEAR MATERIAL means SOURCE MATERIAL, SPECIAL NUCLEAR MATERIAL or BY-PRODUCT MATERIAL; SOURCE MATERIAL, SPECIAL NUCLEAR MATERIAL, and BY-PRODUCT MATERIAL have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; SPENT FUEL means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a NUCLEAR REACTOR; WASTE means any waste material containing BY-PRODUCT MATERIAL other than the tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its SOURCE MATERIAL content, and resulting from the operation by any person or organization of any NUCLEAR FACILITY included under the first two paragraphs of the definition of NUCLEAR FACILITY; NUCLEAR FACILITY means: a. Any NUCLEAR REACTOR; b. Any equipment or device designed or used for separating the isotopes of uranium or plutonium, or processing or utilizing SPENT FUEL, or handling, processing or packaging WASTE; c. Any equipment or device used for the processing, fabricating or alloying of SPECIAL NUCLEAR MATERIAL if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium, or uranium 233 or any combination thereof, or more than 250 grams of uranium 235; d. Any structure, basin, excavation, premises or place prepared or used for the storage or disposal of WASTE; And includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; NUCLEAR REACTOR means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material. 12. For any LOSS arising as a consequence of the failure, refusal, or inability of the INSURED to enter into, renew, or perform any oral, written or implied contract or agreement between the AIMUPC0004 3 2003 5 of 11 ARCH INSURANCE COMPANY INSURED and any other pemon, except any oral, written or implied EMPLOYMENT CONTRACT. SECTION Ill--WHO IS AN INSURED The term INSURED as used herein means the public entity stated in the Declarations as the NAMED INSURED and except as excluded by endorsement to this policy: 1. All persons who were, now are, or shall be lawfully elected, appointed or employed officials of the NAMED INSURED while acting within the scope of their duties for the NAMED INSURED; 2. Members of commissions, boards or other units operated by and under the jurisdiction of such NAMED INSURED while acting within the scope of their duties for the NAMED INSURED and within apportionment of the total operating budget indicated in the application form, provided that the insurance afforded shall not extend to any of the following boards, commissions or units unless specifically endorsed hereon: schools, airports, transit authorities, hospitals, municipally owned gas or electric companies, housing authorities or port authorities; 3. All EMPLOYEES and all persons who perform service on a volunteer basis for the NAMED INSURED while acting within the scope of their duties for the NAMED INSURED and under its direction and control; 4. Any persons providing services to the NAMED INSURED under any mutual aid or similar agreement; 5. The estates, heirs, legal representatives or assigns of deceased persons who were an INSURED(S) at the time of the WRONGFUL ACT(S) upon which a CLAIM is based; 6. The legal representatives or assigns of the INSURED(S) in the event of their incompetency, insolvency or bankruptcy. However none of the following are INSURED(S) under this policy: 1. Any INSURED, including the NAMED INSURED, with respect to the operation of boards, commissions or other units, the members of which are not afforded coverage under 2. above; and Any independent contractor, person(s) or entities who are on retainer, are a consultant or are under contract for services, for any INSURED, unless specifically designated in the application, a copy of which is attached. SECTION IV-- EXTENDED REPORTING PERIOD -- BASIC AND OPTIONAL SUPPLEMENTAL An EXTENDED REPORTING PERIOD, described betow, will be provided if this policy is cancelled or nonrenewed, except for nonpayment of premium, or if WE renew or replace coverage with insurance that: a. Has a retroactive date later than the date shown in the Declarations of this policy; or b. Provides coverage on other than a Claims Made basis. 1. A BASIC EXTENDED REPORTING PERIOD is automatically provided without additional charge. This period begins at the end of the POLICY PERIOD and lasts for sixty (60) days. The BASIC EXTENDED REPORTING PERIOD does not apply to CLAIMS covered under any subsequent policy. 2. Coverage for an optional SUPPLEMENTAL EXTENDED REPORTING PERIOD must be added by endorsement and an additional premium charge must be paid. Such period starts sixty (60) days after the end of the POLICY PERIOD. 3. The INSURED, subject to the terms and conditions set forth herein, shall have a one- time option to elect the period of time for which the SUPPLEMENTAL EXTENDED REPORTING PERIOD shall apply, which in no event shall exceed thirty-six (36) months. WE will determine the additional premium in accordance with OUR rules and rates. In doing so, WE may take into account the following: a. The exposures insured; b. Previous types and amounts of insurance; AIMUPC0004 3 2003 6 of 11 ARCH INSURANCE COMPANY c. Limits of insurance available under this policy for future payment of losses; and d. Other related factors. The additional premium for a one, two or three year SUPPLEMENTAL EXTENDED REPORTING PERIOD will not exceed 75%, 125% or 150%, respectively, of the Annualized Policy Premium. The SUPPLEMENTAL EXTENDED REPORTING PERIOD ENDORSEMENT shall include a provision to the effect that the insurance afforded for CLAIMS first received dudng such period is excess over any other valid and collectible insurance available under policies in force after the SUPPLEMENTAL EXTENDED REPORTING PERIOD starts. 4. The right to purchase the SUPPLEMENTAL EXTENDED REPORTING PERIOD shall terminate unless wdtten notice is given to US not later than sixty (60) days after the effective date of cancellation or nonrenewal of this policy. Payment in full of the SUPPLEMENTAL EXTENDED REPORTING PERIOD premium and any outstanding premiums or recoveries owed to US shall be made concurrently with such written notice for such SUPPLEMENTAL EXTENDED REPORTING PERIOD to become effective. 5. The EXTENDED REPORTING PERIODS do not extend the POLICY PERIOD or change the scope of coverage provided. Subject to this policy's terms, limits of liability, exclusions and conditions, this policy is extended to apply to CLAIMS first made against the INSURED during the BASIC EXTENDED REPORTING PERIOD, or, if purchased, the SUPPLEMENTAL EXTENDED REPORTING PERIOD, but only to CLAIMS due to WRONGFUL ACT(S) committed prior to the end of the POLICY PERIOD (but not before the Retroactive Date, if any shown in the Declarations). 6. The EXTENDED REPORTING PERIODS do not reinstate or increase the policy's limits of liability. CLAIMS that are first received and recorded during the BASIC EXTENDED REPORTING PERIOD or the SUPPLEMENTAL EXTENDED REPORTING PERIOD, if it is in effect, will be deemed to have been made on the last day of the POLICY PERIOD. Once in effect, EXTENDED REPORTING PERIODS may not be cancelled and the applicable premium is fully earned. SECTION V-- LIMITS OF LIABILITY Regardless of the number of INSURED(S) under this policy, persons or organizations who sustain LOSS from WRONGFUL ACT(S), and/or CLAIM(S) made or SUIT(S) brought under this policy resulting from WRONGFUL ACT(S), OUR liability is limited as follows: 1. The ANNUAL AGGREGATE LIMIT specified in the Declarations is the maximum limit of OUR liability for all LOSS arising out of any CLAIM(S) first made against any INSURED during the POLICY PERIOD and reported to US as soon as reasonably possible, but not later than sixty (60) days after the expiration or termination of the POLICY PERIOD. In no event shall OUR liability be increased for any EXTENDED REPORTING PERIOD. 2. Subject to 1. above, the EACH CLAIM LIMIT specified in the Declarations is the limit of OUR liability for all LOSS arising out of any one WRONGFUL ACT first made against any INSURED during the POMCY PERIOD and reported to US as soon as practicable, but not later than sixty (60) days after the expiration or termination of the POLICY PERIOD. 3. Subject to the limits of liability stated above, WE shall only be liable to pay for LOSS in excess of the DEDUCTIBLE specified in the Declarations for each and every CLAIM. In the event WE expend funds for LOSS on behalf of the INSURED, WE will be reimbursed for such expenditures up to the amount of the DEDUCTIBLE specified in the Declarations. Upon written demand by US, the amount of such DEDUCTIBLE will be payable to US within thirty (30) days. 4. CLAIMS based on or arising out of the same act or interrelated acts of one or more INSURED(S) shall be considered a single WRONGFUL ACT and only one DEDUCTIBLE shall be applicable. The limits of this policy apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the POLICY PERIOD shown in the Declarations, unless the POLICY PERIOD is AIMUPC0004 3 2003 7 of 11 ARCHINSURANCE COMPANY extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the preceding period for purposes of determining the limits of liability. SECTION VI -- CONDITIONS 1. ASSIGNMENT. Assignment of interest under this policy shall not bind US unless OUR consent is first endomed hereon. 2. BANKRUPTCY OR INSOLVENCY. The bankruptcy or insolvency of the INSURED or of the INSURED'S estate shall not relieve US of any of OUR obligations under this policy. 3. CANCELLATION. This policy may be cancelled by the first NAMED INSURED by surmndedng this policy to US or any of OUR authorized agents, or by mailing to US written notice stating when thereafter the cancellation shall be effective. This policy may be cancelled by US by mailing to the flint NAMED INSURED, at the last mailing address known to US, wdtten notice stating when, not less than ten (10) days for non-payment of premium, or sixty (60) days for any other valid mason, such cancellation shall be effective. The mailing of notice shall be sufficient proof of notice. The time of surrender or the effective date and hour of cancellation stated in the notice shall become the end of the POLICY PERIOD. Delivery of such written notice either by the NAMED INSURED or by US shall be equivalent to mailing. If this policy shall be cancelled by the NAMED INSURED, WE shall retain the customary short rote proportion of the premium hereon. Payment or tender of any unearned premium by US shall not be a condition precedent to the effectiveness of cancellation, but such payment shall be made as soon as practical. If the period of limitation, relating to the giving of notice is prohibited or made void by any law controlling the construction thereof, such period shall be deemed to be amended to be equal to the minimum period or limitation of such law. 4. CHANGES. Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this policy or estop US from asserting any right under the terms of this policy, nor shall the terms of this policy be waived or changed, except by endorsement issued and made a part of this policy. 5. CONFLICTING LAW. Terms of this policy that are in conflict with the law of the state wherein this policy is issued are hereby amended to conform to such law. 6. EXAMINATION OF BOOKS AND RECORDS. WE may examine and audit the INSURED'S books and records as they relate to this policy, at any time during the POLICY PERIOD, and up to three years afterward. 7. INSPECTIONS AND SURVEYS. WE have the dght, but are not obligated to: a. Make inspections and surveys at any time; b. Give the INSURED reports on the conditions WE find; and c. Recommend changes. Any inspections, surveys, reports or recommendations am related only to insurability and the premiums to be charged. WE do not make safety inspections. WE do not undertake to perform the duty of any person or organization to provide for the health or safety of workem or the public. WE do not warrant that conditions: a. Are safe or healthful; or b. Comply with laws, regulations, codes or standards. 8. INSURED'S DUTIES IN THE EVENT OF A LOSS, CLAIM OR SUIT. a. In the event of a LOSS wdtten notice containing particulars sufficient to identify the INSURED and also reasonably obtainable information with respect to the time, place and cimumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the INSURED to US or any of OUR authorized agents as soon as reasonably possible, but not later than sixty (60) days after the expiration or termination of the POLICY PERIOD; AIMUPC0004 3 2003 8 of 11 ARCH INSURANCE COMPANY b. If CLAIM is made or SUIT is brought against the INSURED, the INSURED shall immediately forward to US every demand, notice, summons or other process received by the INSURED; c. The INSURED shall cooperate with US and, at OUR request, consent to being examined and questioned by OUR representative, under oath if necessary, attend hearings, depositions and thais and shall assist in effecting settlement, secudng and giving evidence, obtaining the attendance of witnesses and in the conduct of SUIT(S), as well as in the giving of a written statement or statements to OUR representatives and defense. In the event of a CLAIM occurring that is likely to involve US hereunder, the INSURED shall not make any payment, assume any liability or incur any expense, including but not limited to LOSS ADJUSTMENT EXPENSE, without OUR consent first being obtained. WE shall have full discretion in the handling of any CLAIM, and the INSURED shall give full information and assistance as WE may reasonably require. 9. LEGAL ACTION AGAINST US. No person or organization has a right under this policy: a. To join US as a party or otherwise bring US into a SUIT asking for damages from an INSURED; or b. To sue US unless there has been compliance with all policy terms. A person or organization may sue US to recover on an agreed settlement or on a final judgment against an INSURED obtained after an actual trial; but WE will not be liable for LOSSES that are not payable under the terms of this policy or that are in excess of the applicable limit of liability. An agreed settlement means a settlement and release of liability signed by US, the INSURED and the claimant or the claimant's legal representative. 10. NONRENEWAL. If WE elect not to renew this policy, WE will mail or deliver to the first NAMED INSURED specified in the Declarations, written notice of such nonrenewal. Such written notice will be mailed not less than (60) days pdor to the expiration date of this policy. If mailed, proof of mailing will be sufficient proof of notice. 11. NOTICE OF CLAIM. a. If, during the POLICY PERIOD or the EXTENDED REPORTING PERIOD, the INSURED receives written notice from any party that it is the intention of such party to hold the INSURED responsible for any WRONGFUL ACT(S) or the INSURED becomes aware of any occurrence that may subsequently give rise to a CLAIM for any alleged WRONGFUL ACT, the INSURED shall give written notice to US of the receipt of such written notice or awareness of an occurrence, as soon as reasonably possible, but not later than sixty (60) days after the expiration or termination of the POLICY PERIOD. Any CLAIM(S) made against the INSURED arising out of such WRONGFUL ACT(S) shall, for the purpose of this policy, be treated as a CLAIM made during the POLICY PERIOD in which such notice was given, or, if given during the EXTENDED REPORTING PERIOD, as a CLAIM made during the last POLICY PERIOD; b. For the purpose of the above clause, notice to the designee named under Item 6. of the Declarations shall constitute notice to the INSURED; c. In the event of any CLAIM occurring hereunder, notice to US shall be given to the person or firm(s) specified under Item 7. of the Declarations. Notice shall be deemed to be received if sent by prepaid mail, properly addressed. 12. OTHER INSURANCE. The insurance afforded by this policy is primary insurance, except if other valid and collectible insurance is available to the INSURED for a CLAIM presented or when stated to apply in excess of or contingent upon the absence of other insurance. When this insurance is primary and the INSURED has other insurance that is stated or found to be applicable to the LOSS on an excess or contingent basis, the amount of OUR liability under this policy shall not be reduced by the existence of such other insurance. AIMUPC0004 3 2003 9 of 11 13. ARCH INSURANCE COMPANY When this insurance is excess, WE will have no duty to defend any CLAIM or SUIT that ahy other insurer has a duty to defend. If no other insurer defends, WE will undertake to do so, but WE will be entitled to the insured's rights against all other insurers. When this insurance is excess over other insurance, WE will pay only OUR share of the amount of the LOSS, if any, that exceeds the sum of: a. The total amount that all such other insurance would pay for the LOSS in the absence of this insurance; and b. The total of all DEDUCTIBLE and self- insured amounts under all such other insurance. When both this insurance and other insurance apply to the LOSS on the same basis, whether primary, excess or contingent, WE shall not be liable under this policy for a greater proportion of the LOSS than that stated in the applicable contribution provision below: a. CONTRIBUTION BY EQUAL SHARES. If all other valid and collectible insurance provides for contribution by equal shares, WE will follow this method also. Under this provision, each insurer contributes equal amounts until it has paid its applicable limit of liability or none of the LOSS remains, whichever comes first. b. CONTRIBUTION BY LIMITS. If any of the other insurance does not provide for contribution by equal shares, WE will contribute by limits. Under this provision, each insurer's share is based on the ratio of its applicable limit of liability to the total applicable limits of liability of all insurers. PUBLIC ENTITY AUTHORIZATION CLAUSE. By acceptance of this policy, the NAMED INSURED agrees to act on behalf of each INSURED with respect to the giving and receiving of notice of CLAIM, cancellation or nonrenewat, the payment of premiums that may become due under this policy; and each INSURED agrees that the NAMED INSURED shall act on their behalf. 14. REPRESENTATION. 15. 16. 17. By accepting this policy, YOU agree: a. The application for insurance completed in solicitation of this insurance is made a part of this policy as though set forth in full herein; b. The statements in the Declarations and application for insurance are accurate and complete and are deemed material to the acceptance of the risk or the hazard assumed by US under this policy; c. Those statements are based upon representations YOU made to US; d. WE have issued this policy in reliance upon YOUR representations; and e. In the event the application either states or fails to state facts materially affecting the risk or hazard assumed by US under this policy, this policy in its entirety shall be void and of no effect whatsoever. SEPARATION OF INSUREDS. Except with respect to the limits of liability, and any rights or duties specifically assigned in this policy to the first NAMED INSURED, this insurance applies: a. As if each NAMED INSURED were the only NAMED INSURED; and b. Separately to each INSURED against whom CLAIM is made or SUIT is brought. SETTLEMENT. WE shall not settle any SUIT without the INSURED'S consent. If, however, the INSURED refuses to consent to any settlement offer received by US, and shall elect to contest the CLAIM or continue any legal proceedings in connection with such CLAIM, OUR liability to indemnify and/or defend the INSURED for the CLAIM shall not exceed the amount for which the CLAIM could have been so settled plus LOSS ADJUSTMENT EXPENSE incurred up to the date of such refusal after a written tender of such an offer has been made by US to the INSURED. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US. If the INSURED has rights to recover all or part of any payment WE have made under this Policy, those rights are transferred to US. The INSURED must do AIMUPC0004 3 2003 10 of 11 18. ARCH INSURANCE COMPANY nothing after LOSS to impair them. At OUR request, the INSURED will bring SUIT or transfer those rights to US and help US enforce them. YOUR RIGHT TO CLAIM AND POTENTIAL CLAIM INFORMATION. WE will provide the first NAMED INSURED specified in the Declarations the following information relating to this and any preceding Public Officials Liability Coverage Form WE have issued to YOU during the previous three years. a. A list or other record of each notice of occurrence that might give rise to a CLAIM, not previously reported to any other insurer, of which WE were notified in accordance with paragraph 11.a. of this Section. WE will include the date and brief description, if that information was in the notice WE received. b. A summary by policy year, of payments made and amount reserved, stated separately, under any applicable ANNUAL AGGREGATE LIMIT. Amounts reserved are based on OUR iudgment. They are subject to change and are not to be regarded as ultimate settlement values. If WE cancel or elect not to renew this policy, WE will provide such information no later than thirty (30) days before the date of policy termination. In other cimumstances, WE will provide this information only if WE receive a written request from the first NAMED INSURED within sixty (60) days after the end of the POLICY PERIOD. In this case, WE will provide this information within forty-five (45) days of receipt of the request. WE compile CLAIM and potential CLAIM information for OUR own business purposes and exemise reasonable care in doing so. In providing this information to the first NAMED INSURED, WE make no representations or warranties to insureds, insurers, or others to whom this information is furnished by or on behalf of any INSURED. Cancellation or nonrenewal will be effective even if WE inadvertently provide inaccurate information. AIMUPC0004 3 2003 11 of 11 ARCHINSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION -- FAILURE TO MAINTAIN INSURANCE This endorsement modifies insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM The following EXCLUSION is added to SECTION II- COVERAGES, EXCLUSIONS: This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any CLAIM or SUIT made against the INSURED arising out of any failure on the part of any INSURED to purchase or maintain insurance. INSURANCE includes, but is not limited to, coverage or benefits provided by self-insurance arrangements, pools, self-insurance trusts, captive insurance companies, retention groups, reciprocal exchanges, or any other plan or agreement of dsk transfer or assumption. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUPC0032 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION -- FINANCIAL LOSS This endorsement modifies insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM The following EXCLUSION is added to SECTION II- COVERAGES, EXCLUSIONS: 1. This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any CLAIM or SUIT made against the INSURED directly or indirectly adsing from: 2. The pumhase, offering, sale, administration, diminution of value, yield income, or failure to comply with any obligation of any type of security, bond, or debenture; 3. The use, misuse, management, mismanagement, loss of, or failure to return, any monies (including funds, grants and appropriations) including any breach of or failure to satisfy and duty or obligation if such failure or breach is caused by the use, misuse, management, mismanagement, loss of, or failure to return any such monies; The formulation of tax rates, the collection of taxes and/or the disbursement of tax refunds; or Any misappropriation and/or improper distribution of taxes. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUPC0033 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION -- INSURANCE PRACTICES This endorsement modifies insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM The following EXCLUSION is added to SECTION II- COVERAGES, EXCLUSIONS: This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any CLAIM or SUIT made against the INSURED arising out of: t. Actual or alleged cancellation or non-renewal of any insurance; 2. Actual or alleged failure or refusal to pay insurance benefits or proceeds; Actual or alleged delay in the payment of benefits under any insurance contract; Actual or alleged lack of good faith or fair dealing or other breach of any duty in the processing or handling of any insurance claim, or the brokering, procuring or underwriting of insurance; or Any INSURED acting in the capacity of an insurance agent, intermediary or broker in the negotiation, placement or maintenance of any insurance contract. For purposes of this exclusion, the term INSURANCE included any insurance policy, reinsurance, bond, indemnity agreement, annuity, endowment, pension contract, risk management or insurance program, pool or trust, or any similar program. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUPC0034 3 2003 ARCHINSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION -- SECURITIES/BONDS This endorsement modifies insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM The following EXCLUSION is added to SECTION II --COVERAGES, EXCLUSIONS: This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any CLAIM or SUIT made against the INSURED arising out of the purchase, offering, sale or administration of any type of security, bond, or debenture. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUPC0035 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ENHANCED EMPLOYMENT LIABILITY ENDORSEMENT This endorsement modifies insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM As respects to any CLAIM or LOSS arising out of only EMPLOYMENT CLAIMS, Exclusion 3. is deleted and replaced by the following: 3. For any LOSS, whether direct, indirect, or consequential, arising from or caused by: a. Death of any person; b. Any obligation of the INSURED under a Worker's Compensation, disability benefits or unemployment compensation law or any similar law; or c. For LOSS to or destruction of any property, tangible or intangible, including diminution of value or loss of use. For the purposes of this endorsement only, EMPLOYMENT CLAIMS means any CLAIM by any current or former employee or an applicant for employment by the INSURED arising out of employee hiring, advancement, remuneration, treatment, condition or termination of employment. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUPC0020 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) iNSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M, THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION -- DERIVATIVE INVESTMENT This endorsement modifies insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM The following EXCLUSION is added to SECTION II- COVERAGES, EXCLUSIONS: This insurance does not apply to and WE shall not be obligated to make any payment nor to defend any SUIT in connection with any CLAIM or SUIT made against the INSURED: 1. Arising out of or in any way connected with any insured's involvement in, or vicarious liability for any ownership, management, investment, investment policy, oversight responsibility, or investment advice for any public or private investment fund, trust or pool, including the use of, or failure to use derivative investment components. 2. Arising out of or in any way connected with any actual or alleged violation(s) of the following (including any rules, regulations or amendments thereto): a. The Securities Act of 1933; or b. The Securities Exchange Act of 1934; or c. The Public Utilities Holding Company Act of 1935; or d. The Trust Indenture Act of 1939; or e. The Investment Company Act of 1940; or f. The Investment Advisors Act of 1940; or g. Any state "Blue Sky Laws," or h. Based upon any common law principle(s) of liability if made in connection with any actual or alleged violation of any acts or laws listed in a. - g. above. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUPC0021 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CHANGE ENDORSEMENT EXCLUSION -- PERSONAL INJURY EXCLUSION REDEFINED This endorsement modifies insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM SECTION II -- COVERAGES, EXCLUSIONS is amended as follows: EXCLUSION 4. is deleted in its entirety and replaced with the following: 4. For false arrest, detention or imprisonment, libel, slander, or other defamatory or disparaging material, wrongful eviction from, wrongful entry into or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies by or on behalf of its owner, landlord or lessor, assault, battery, malicious prosecution or false or improper service of process. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUPC0023 3 2003 ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDATORY ENDORSEMENT This endorsement modifies insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM Exclusion 4. of the EXCLUSIONS section is deleted in its entirety and is replaced by the following: 4. For false arrest, detention or imprisonment, libel, slander, or other defamatory or disparaging material, discrimination, wrongful eviction from, wrongful entry into or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies by or on behalf of its owner, landlord or lessor, assault, battery, malicious prosecution or false or improper service of process; ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUPC0048 3 2003 ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A,M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAR OR TERRORISM EXCLUSION This endorsement modifies insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM This following EXCLUSION is added to SECTION II - COVERAGES, EXCLUSIONS: WAR OR TERRORISM This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any CLAIM or SUIT made against the INSURED arising, directly or indirectly, out of: 1. War, including undeclared or civil war; or 2. Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or 3. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these; or 4. TERRORISM, including any action taken in hindering or defending against an actual or expected incident of TERRORISM regardless of any other cause or event that contributes concurrently or in any sequence to the injury or damage. However, with respect to TERRORISM, this exclusion only applies if one or more of the following are attributable to an incident of TERRORISM: 1. The total of insured damage to all types of property exceeds $25,000,000. In determining whether the $25,000,000 threshold is exceeded, we will include all insured damage sustained by property of all persons and entities affected by the TERRORISM and business interruption losses sustained by owners or occupants of the damaged property. For the purpose of this provision, insured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the application of any terrorism exclusions; or 2. Fifty or more persons sustain death or serious physical injury. For the purposes of this provision, serious physical injury means: a. Physical injury that involves a substantial risk of death; or b. Protracted and obvious physical disfigurement; or c. Protracted loss of or impairment of the function of a bodily member or organ; or 3. The TERRORISM involves the use, release or escape of nuclear materials, or directly or indirectly results in nuclear reaction or radiation or radioactive contamination; or AIMUPC0049 3 2003 Page 1 of 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 200f ARCH INSURANCE COMPANY 4. The TERRORISM is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or 5. Pathogenic or poisonous biological Or chemical materials are released, and it appears that one purpose of the TERRORISM was to release such materials. Paragraphs 1. and 2., immediately preceding, describe the thresholds used to measure the magnitude of an incident of TERRORISM and the circumstances in which the threshold will apply for the purpose of determining whether the Terrorism Exclusion will apply to that incident. When the Terrorism Exclusion applies to an incident of TERRORISM, there is no coverage under this Coverage Part. In the event of any incident of TERRORISM that is not subject to the Terrorism Exclusion, coverage does not apply to any loss or damage that is otherwise excluded under this Coverage Part. Multiple incidents of TERRORISM which occur within a seventy-two hour period and appear to be carried out in concert or to have a related purpose or common leadership shall be considered to be one incident. The following definition is added to SECTION I -- DEFINITIONS: TERRORISM means activities against persons, organizations or property of any nature: 1. That involve the following or preparation for the following: a. Use or threat of force or violence; or b. Commission or threat of a dangerous act; or c. Commission or threat of an act that interferes with or disrupts an electronic, communication, information, or mechanical system; and 2. When one or both of the following applies: a. The effect is to intimidate or coerce a government or the civilian population or any segment thereof, or to disrupt any segment of the economy; or b. It appears that the intent is to intimidate or coerce a government, or to further political, ideological, religious, social or economic objectives or to express (or express opposition to) a philosophy or ideology. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUPO00T9 3 2003 Page 2 of 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, insurance Services Office, Inc., 2001 ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FUNGI OR BACTERIA EXCLUSION This endorsement modifies insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM A. The' following EXCLUSION is added to SECTION II -- COVERAGES, EXCLUSIONS: FUNGI OR BACTERIA 1. This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any CLAIM or SUIT made against the INSURED: For any LOSS which would not have taken place, in whole or in part, but for the actual, alleged or threatened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any FUNGI or bacteria on or within a building or structure, including its contents, regardless of whether any other cause, event, material or product contributed concurrently or in any sequence to such injury. 2. The coverage afforded by this policy does not apply to any loss, cost or expenses arising out of the abating, testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, neutralizing, remediating or disposing of, or in any way responding to, or assessing the effects of, FUNGI or bacteria, by any INSURED or by any other person or entity. B. The following definition is added to the DEFINITIONS Section: FUNGI means any type or form of fungus, including mold or mildew and any mycotoxins, spores, scents or byproducts produced or released by fungi. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUPC0050 3 2003 Includes copyrighted matedal of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 2001 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CHANGE ENDORSEMENT EXCLUSION -- CONTRACTUAL EXCLUSION REDEFINED This endorsement modifies insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM SECTION II -- COVERAGES, EXCLUSIONS is amended as follows: EXCLUSION 12. is deleted in its entirety and replaced with the following: 12. For any LOSS arising as a consequence of the failure, refusal, or inability of the INSURED, for whatever reason, to enter into, perform, renew, extend, or modify any oral, written, or implied contract or agreement between the INSURED and any other party, except any employment contract. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUPC0044 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. REINSTATEMENT OF AGGREGATE LIMIT Subject to the terms and conditions otherwise applicable to the policy, if, in the event of termination of this insurance, the INSURED elects to purchase an EXTENDED REPORTING PERIOD, then the INSURED shall have the dght to elect reinstatement of the aggregate limit shown in the Declarations, if such aggregate shall have become impaired as a result of CLAIMS made against the INSURED. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUPC0022 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION -- KNOWLEDGE OF WRONGFUL ACTS PRIOR TO THE POLICY PERIOD This endorsement modifies insurance provided under the following: PUBLIC OFFICIALS LIABILITY COVERAGE FORM The following EXCLUSION is added to SECTION II --COVERAGES, EXCLUSIONS: This insurance does not apply to and WE shall not be obligated either to make any payment or to defend any SUIT in connection with any CLAIM or SUIT made against the INSURED arising out of: 1. Any WRONGFUL ACT(S) that takes place prior to the POLICY PERIOD if the INSURED had knowledge of circumstances which could reasonably be expected to give rise to a CLAIM; or 2. Any LOSS for which the INSURED is entitled to indemnity or payment by reason of having given notice of any circumstances that might give rise to a CLAIM under any other policy or policies. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUPC0040 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NON-STACKING OF LIMITS ENDORSEMENT (Two Or More Coverage Forms, Coverage Parts Or Policies Issued By Us) This endorsement modifies insurance provided under the following: EDUCATOR'S LEGAL LIABILITY COVERAGE LAW ENFORCEMENT LIABILITY COVERAGE PUBLIC OFFICIALS LIABILITY COVERAGE The following is added to the CONDITIONS section: NON-STACKING OF LIMITS If any Coverage Form, Coverage Part or policy issued to YOU by US or any company affiliated with US apply to the same claim for damages, the maximum Limit of Insurance for Liability Coverage under all of the Coverage Forms, Coverage Parts or policies shall not exceed the highest applicable Limit of Insurance Available under any one Coverage Form, Coverage Part or policy. This Condition does not apply to any Coverage Form, Coverage Part or policy issued by US er an affiliated company specifically to apply as excess insurance over this policy. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUIL0023 3 2003 VEHICLES ARCH INSURANCE COMPANY BUSINESS AUTO COVERAGE FORM DECLARATIONS f,.--~E M ONE NAME INSURED CITY OF JEFFERSONVILLE POLICY NO. KMPKG0007'I FORM OF BUSINESS: [] MUNICIPALITY [] PUBLIC SCHOOL [] SPECIAL DISTRICT [] OTHER ITEM TWO SCHEDULE OF COVERAGES AND COVERED AUTOS This policy provides only those coverages where a charge is shown in the premium column below. Each of these coverages will apply only to those "autos" shown as covered "autos." "Autos" are shown as covered "autos" for a particular coverage by the entry of one or more of the symbols from the COVERED AUTO Section of the Business Auto Coverage Form next to the name of the coverage. COVERED AUTOS COVERAGES (Entry of one or more of the LIMIT PREMIUM symbols from the COVERED AUTOS Section THE MOST WE WILL PAY FOR ANY ONE of the Business Auto ACCIDENT OR LOSS Coverage Form shows which autos are covered autos) LIABILITY 1 $1 ~000~000 Incl PERSONAL INJURY PROTECTION SEPARATELY STATED IN EACH PIP ENDORSE- Ior equivalent added No-fault CoveraRe) MENT MINUS $ NIL Ded. ADDED PERSONAL INJURY SEPARATELY STATED IN EACH ADDED PiP PROTECTION ENDORSEMENT ~.or equivalent added No-fault Covera,qe) '~,OPERTY PROTECTION INSURANCE SEPARATELY STATED IN THE P.P.I. ENDORSE- ~ichigan only) MENT MINUS $ NiL Ded. FOR EACH ACCIDENT AUTO MEDICAL PAYMENTS 2 $5,000 INCL UNINSURED MOTORISTS 2 $1,000,000 INCL UNDERINSURED MOTORISTS ~R/Vhen not included in Uninsured 2 Included INCL ~lotorists Coverage) PHYSICAL DAMAGE ACTUAL CASH VALUE OR COST OF REPAIR, ~OMPREHENSIVE COVERAGE 7,8 WHICHEVER IS LESS MINUS $ 250 INCL Ded. FOR EACH COVERED AUTO. See ITEM FOUR for hired or borrowed "autos." PHYSICAL DAMAGE ACTUAL CASH VALUE OR COST OF REPAIR, SPECIFIED CAUSES OF LOSS WHICHEVER IS LESS MINUS $ 3OVERAGE Ded. FOR EACH COVERED AUTO. See ITEM FOUR for hired or borrowed "autos." PHYSICAL DAMAGE ACTUAL CASH VALUE OR COST OF REPAIR, 3OLLISION COVERAGE 7,8 WHICHEVER IS LESS MINUS $ 500 INCL Ded. FOR EACH COVERED AUTO. See ITEM FOUR for hired or borrowed "autos." :~HYSICAL DAMAGE TOWING AND $ for each disablement of a ~,BOR (Not available in California) private passen,qer "auto" PREMIUM FOR ENDORSEMENTS INCL ESTIMATED TOTAL PREMIUM INCL ENDORSEMENTS ATTACHED TO THIS COVERAGE FORM: Referto form AIMUIL0002 (3-2003) AIMUCA0028 (3-2003) Page 1 of 2 Incledee copyrighted matedal of Insurance Services Office, Inc., with its permission. Copyright, insurance Services Office, Inc., 1990 ARCH INSURANCE COMPANY BUSINESS AUTO COVERAGE FORM DECLARATIONS ~.~TEM THREE SCHEDULE OF COVERED AUTOS YOU OWN DESCRIPTION Year Model, Trade Name PER SCHEDULE ON FILE VEHICLE IDENTIFICATION NUMBER (VIN) TERRITORY ITEM FOUR SCHEDULE OF HIRED OR BORROWED COVERED AUTO COVERAGE AND PREMIUMS, LIABILITY COVERAGE-RATING BASIS, COST OF HIRE STATE ESTIMATED COST OF HiRE RATE PER EACH $100 FACTOR (If Liability. PREMIUM FOR EACH STATE COST OF HIRE Covera,qe. is primary) Indiana INCL INCL INCL INCL TOTAL PREMIUM $ Included Cost of hire means the total amount you incur for the hire of "autos" you don't own (not including "autos" you borrow or rent from your partners or employees or their family members). Cost of hire does not include charges for services performed by motor carriers of property or passengers. /..._.. PHYSICAL DAMAGE LIMIT OF INSURANCE ESTIMATED RATE PER PREMIUM .;OVERAGES THE MOST WE WILL PAY ANNUAL EACH $100 DEDUCTIBLE COST OF HIRE ANNUAL COST OF HIRE ACTUAL CASH VALUE, COST OF REPAIRS OR INCL INCL iNCL $ 35000 WHICHEVER IS LESS MINUS COMPREHENSIVE $ 250 Ded. FOR EACH COVERED AUTO. ACTUAL CASH VALUE, COST OF REPAIRS OR SPECIFIED CAUSES $ WHICHEVER IS LESS MINUS OF LOSS $ Ded. FOR EACH COVERED AUTO. ACTUAL CASH VALUE, COST OF REPAIRS OR INCL ]NCL INCL $ 35000 WHICHEVER IS LESS MINUS COLLISION $ 500 Ded. FOR EACH COVERED AUTO. TOTAL $ Included PREMIUM ITEM FIVE SCHEDULE FOR NON-OWNERSHIP LIABILITY Named Insured's Business Rating Basis Number Premium Other than a Number of Employees Social Service Agency Number ct Partners Social Service Agency Number of Employees Number of Volunteers Total Premium $ INCL AIMUCA0028 (3-2003) Page 2 of 2 Includes copyrighted matedal of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1990 ARCH INSURANCE COMPANY BUSINESS AUTO COVERAGE FORM EDUCATIONAL INSTITUTION PUBLIC ENTITY Vadous provisions in this policy restdct coverage. Read the entire policy carefully to determine dghts, duties and what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "oud' refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION VI -- DEFINITIONS. 2 SECTION I -- COVERED AUTOS Item Two of the Declarations shows the "autos" that are covered "autos" for each of your coverages, The following numerical symbols describe the "autos" that may be covered "autos". The symbols entered next to a coverage on the Declarations designate the only "autos" that are covered "autos". A. Description Of Covered Auto Designation Symbols Symbol Description I = Any "Auto". = Owned "Autos" Only. Only those "autos" you own (and for Liability Coverage any "trailers" you do not own while attached to power units you own). This includes those "autos" you acquire ownership of after the policy begins. 3 = Owned Private Passenger "Autos" Only. Only the private passenger "autos" you own. This includes those private passenger "autos" you acquire ownership of after the policy begins. 4 = Owned "Autos" Other Than Private Passenger "Autos" Only. Only those "autos" you own that ara not of the pdvate passenger type (and for Liability Coverage any "trailers" you do not own while attached to power units you own). This includes those "autos" not of the private passenger type you acquire ownership of after the policy begins. 5 = Owned "Autos" Subject To No-Fault. Only those "autos" you own that are required to have No-Fault benefits in the state where they are licensed or principally garaged. This includes those "autos" you acquire ownership of after the policy begins provided they are required to have No-Fault benefits in the state where they are licensed or principally garaged. 6 = Owned "Autos" Subject To A Compulsory Uninsured Motorists Law. Only those "autos" you own that because of the law in the state where they are licensed or principally garaged are required to have and cannot reject Uninsured Motorists Coverage. This includes those "autos" you acquire ownership of after the policy begins provided they are subject to the same state uninsured motorists requirement. 7 = Specifically Described "Autos". Only those "autos" described in ITEM THREE of the Declarations for which a premium charge is shown (and for Liability Coverage any "trailers" you do not own while attached to any power unit described in ITEM THREE). 8 = Hired "Autos" Only. Only those "autos" you lease, hire, rent or borrow. This does not include any "auto" you lease, hire, rent, or borrow from any of your "employees", student teachers, volunteers, partners or members of their households. 9 = Nonowned "Autos" Only. Only those "autos" you do not own, lease, hire, rent or borrow that are used in connection with your business. This includes "autos" owned by your "employees", student teachers, volunteers, partners or members of their households but only while used in your business or your personal affairs. B. Owned Autos You Acquire After The Policy Begins t. If symbols 1, 2, 3, 4, 5 or 6 are entered next to a coverage in ITEM TWO of the Declarations, then you have coverage for "autos" that you acquire of the type described for the remainder of the policy period. 2. But, if symbol 7 is entered next to a coverage in ITEM TWO of the Declarations, an "auto" you acquire will be a covered "auto" for that coverage only if: AIMUCA0011 3 2003 Page 1 of 14 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1996 ARCH INSURANCE COMPANY a. We already cover all "autos" that you own for that coverage or it replaces an "auto" you previously owned that had that coverage; and b, You tell us within 30 days after you acquire it that you want us to cover it for that coverage. C. Certain Trailers, Mobile Equipment And Temporary Substitute Autos If Liability Coverage is provided by this Coverage Form, the following types of vehicles are also covered "autos" for Liability Coverage: 1. "Trailers" with a load capacity of 2,000 pounds or less designed primarily for travel on public reads. 2. "Mobile equipment" while being carried or towed by a covered ~auto". 3. Any "auto" you do not own while used with the permission of its owner, as a temporary substitute for a covered "auto" you own that is out of service because of its: a. Breakdown; b. Repair; c. Servicing; d. "Loss"; or e. Destruction. SECTION II -- LIABILITY COVERAGE Coverage We will pay all sums an "insured" legally must pay as damages because of "bodily injury" or "property damage" to which this insurance applies, caused by an "accident" and resulting from the ownership, maintenance or use of a covered "auto". We will also pay all sums an "insured" legally must pay as a "covered pollution cost or expense" to which this insurance applies, caused by an "accident" and resulting from the ownership, maintenance or use of covered "autos'. However, we will only pay for the "covered pollution cost or expense" if there is either "bodily injury" or "property damage" to which this insurance applies that is caused by the same "accident". We have the right and duty to defend any "insured" against a "suit" asking for such damages or a "covered pollution cost or expense". However, we have no duty to defend any "insured" against a "suit" seeking damages for "bodily injury" or "property damage" or a "covered pollution cost or expense" to which this AIMUCA0011 3 2003 Page 2 of 14 insurance does not apply. We may investigate and settle any claim or "suit" as we consider appropriate. Our duty to defend or settle ends when the Liability Coverage Limit of Insurance has been exhausted by payment of judgments or settlements. 1. Who Is An Insured The following are "insureds": a. You for any covered "auto". b. Anyone else while using with your permission a covered "auto" you own, hire or borrow except: (1) The owner or anyone else from whom you hire or borrow a covered "auto". This exception does not apply if the covered "auto" is a "trailer" connected to a covered "auto" you own. (2) Your "employee", student teacher, volunteer, or partner (if you are a partnership) if the covered "auto" is owned by that "employee", student teacher, volunteer, partner or a member of his or her household. (3) Anyone other than your "employees", student teachers, volunteers, partners (if you are a partnership), or a lessee or borrower or any of their "employees", while moving property to or from a covered "auto". c. Anyone liable for the conduct of an "insured" described above but only to the extent of that liability. 2. Coverage Extensions a. Supplementary Payments In addition to the Limit of Insurance, we will pay for the "insured": (1) All expenses we incur. (2) Up to $2,000 for cost of bail bonds (including bonds for related traffic law violations) required because of an "accident" we cover. We do not have to furnish these bonds. (3) The cost of bonds to release attachments in any "suit" we defend, but only for bond amounts within our Limit of Insurance. (4) All reasonable expenses incurred by the "insured" at our request, including actual loss of earning up to $250 a day because of time off from work. Includes copyrighted material of Insurance Sen/ices Office, Inc., with its permission. Copyright, insurance Services Office, Inc., 1996 ARCH INSURANCE COMPANY (5) All costs taxed against the "insured" in any "suit" against the "insured" we defend. (6) All interest on the full amount of any judgment that accrues after entry of the judgment in any "suit" against the insured we defend, but our duty to pay interest ends when we have paid, offered to pay or deposited in court the part of the judgment that is within our Limit of Insurance. b. Out-of-State Coverage Extensions While a covered "auto" is away from the state where it is licensed we will: (1) Increase the Limit of Insurance for Liability Coverage to meet the limits specified by a compulsory or financial responsibility law of the jurisdiction where the covered "auto" is being used. This extension does not apply to the limit or limits specified by any law governing motor carders of passengers or property. (2) Provide the minimum amounts and types of other coverages, such as no-fault, required of out-of-state vehicles by the jurisdiction where the covered ~auto" is being used. We will not pay anyone more than once for the same elements of loss because of these extensions. Exclusions This insurance does not apply to: 1. Expected Or Intended Injury "Bodily injury" or "property damage" expected or intended from the standpoint of the "insured". 2. Contractual Liability assumed under any contract or agreement. But this exclusion does not apply to liability for damages: a. Assumed in a contract or agreement that is an "insured contract" provided the "bodily injury" or "property damage" occurs subsequent to the execution of the contract or agreement; or b. That the "insured" would have in the absence of the contract or agreement. 3. Worker's Compensation Any obligation for which the ~insured" or the ~insured's" insurer may be held liable under any workers' compensation, disability benefits or unemployment compensation law or any similar taw. 4. Employee Indemnification And Employer's Liability "Bodily injury" to: a. An "employee~, volunteer or student teacher of the "insured" arising out of and in the course of: (1) Employment by the "insured"; or (2) Performing the duties related to the conduct of the "insured's" business; or b. The spouse, child, parent, brother or sister of that "employee", volunteer or student teacher as a consequence of paragraph a. above. This exclusion applies: (1) Whether the "insured" may be liabte as an employer or in any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. But this exclusion does not apply to liability assumed by the "insured" under an "insured contract". $. Fellow Employee ~Bodily injury" to any fellow "employee~ of the "insured" adsing out of and in the course of the fellow "employee's" employment or while performing duties related to the conduct of your business. However, this exclusion does not apply if the "bodily injury" results from the use of a covered "auto" you don't own, lease, hire, rent or borrow while used in your business. 6. Care, Custody Or Control "Property damage" to or "covered pollution cost or expense" involving property owned or transported by the "insured" or in the "insured's* care, custody or control. But this exclusion does not apply to liability assumed under a sidetrack agreement. AIMUCA0011 3 2003 Page 3 of 14 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1996 ARCHINSURANCE COMPANY 10, Handling Of Property "Bodily injury" or "property damage" resulting from the handling of property: a. Before it is moved from the place where it is accepted by the "insured" for movement into or onto the covered "auto"; or b. After it is moved from the covered "auto" to the place where it is finally delivered by the "insured". Movement Of Property By Mechanical Device "Bodily injury" or "property damage" resulting from the movement of property by a mechanical device (other than a hand truck) unless the device is attached to the covered "auto". Operations "Bodily injury" or "property damage" arising out of the operation of any equipment listed in paragraphs 6.b. and 6.c. of the definition of "mobile equipment". Completed Operations "Bodily injury" or "property damage" adsing out of your work after that work has been completed or abandoned. In this exclusion, your work means: a. Work or operations performed by you or on your behalf; and b. Materials, parts or equipment furnished in connection with such work or operations. Your work includes warranties or representations made at any time with respect to the fitness, quality, durability or performance of any of the items included in paragraphs a. or b. above. Your work will be deemed completed at the earliest of the following times: ('1) When all of the work called for in your contract has been completed. (2) When all of the work to be done at the site has been completed if your contract calls for work at more than one site. (3) When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or subcontractor working on the same project. Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. Pollution "Bodily injury" or "property damage" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants": a. That are, or that are contained in any property that is: ('1) Being transported or towed by, handled, or handled for movement into, onto or from, the covered "auto"; (2) Otherwise in the course of transit by or on behalf of the "insured"; or (3) Being stored, disposed of, treated or processed in or upon the covered "auto"; b. Before the "pollutants" or any property in which the "pollutants" are contained are moved from the place where they are accepted by the "insured" for movement into or onto the covered "auto"; or c. After the "pollutants" or any property in which the "pollutants" are contained are moved from the covered "auto" to the place where they are finally delivered, disposed of or abandoned by the "insured". Paragraph a. above does not apply to fuels, lubricants, fluids, exhaust gases or other similar "pollutants" that are needed for or result from the normal electrical, hydraulic or mechanical functioning of the covered "auto" or its parts, if: (1) The "pollutants~ escape, seep, migrate, or are discharged, dispersed or released directly from an "auto" part designed by its manufacturer to hold, store, receive or dispose of such "pollutants"; and (2) The "bodily injury", "property damage" or "covered pollution cost or expense" does not arise out of the operation of any equipment listed in paragraphs 6.b. and 6.c. of the definition of "mobile equipment". Paragraphs b. and c. above of this exclusion do not apply to "accidents" that occur away from premises owned by or rented to an "insured" with respect to AIMUCA0011 3 2003 Page 4 of 14 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1996 ARCH INSURANCE COMPANY Co "pollutants" not in or upon a covered "auto" if: ('1) The "pollutants" or any property in which the "pollutants" are contained are upset, overturned or damaged as a result of the maintenance or use of a covered "auto"; and (2} The discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused directly by such upset, overturn or damage. '12. War "Bodily injury" or "property damage" due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. This exclusion applies only to liability assumed under a contract or agreement. 13. Racing Covered "autos" while used in any professional or organized racing or demolition contest or stunting activity, or while practicing for such contest or activity. This insurance also does not apply while that covered "auto" is being prepared for such a contest or activity. Limit Of Insurance Regardless of the number of covered "autos", "insureds", premiums paid, claims made or vehicles involved in the "accident", the most we will pay for the total of all damages and "covered pollution cost or expense" combined, resulting from any one "accident" is the Limit of Insurance for Liability Coverage shown in the Declarations. All "bodily injury", "property damage" and "covered pollution cost or expense" resulting from continuous or repeated exposure to substantially the same conditions will be considered as resulting from one "accident". No one will be entitled to receive duplicate payments for the same elements of "loss" under this Coverage Form and any Medical Payments Coverage Endorsement, Uninsured Motorists Coverage Endorsement or Underinsured Motorists Coverage Endorsement attached to this Coverage Part. incurred, for services rendered within three years from the date of the "accident". SECTION III -- MEDICAL PAYMENTS A. Coverage We will pay reasonable expenses incurred for necessary medical and funeral services to or for an "insured" who sustains "bodily injury" caused by "accident". We will pay only those expenses AIMUCA0011 3 2003 Page 5 of 14 Includes copyrighted material of insurance Services Office, Inc., with its permission, Copyright, Insurance Services Office, ]nc., 1996 ARCH INSURANCE COMPANY B. Who Is An Insured The term "insured" as anyone "occupying": 1. 2. used herein means A covered "auto'; or A temporary substitute for a covered "auto" if the covered "auto" must be out of service because of its breakdown, repair, servicing, loss or destruction. C. Exclusions This insurance does not apply to: '1. "Bodily injury" sustained by an "insured" while "occupying" a vehicle located for use as a premises. 2. "Bodily injury" sustained by an "insured" while "occupying" or struck by any vehicle (other than a covered "auto") owned by you or furnished or available for your regular use. 3. "Bodily injury" to your ~employee" arising out of and in the course of employment by you. 4. "Bodily injury" due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. 5. "Bodily injury" to anyone using a vehicle without a reasonable belief that the person is entitled to do so. 5. "Bodily injury" sustained by an "insured" while "occupying" any covered ~auto" while used in any professional racing or demolition contest or stunting activity, or while practicing for such contest or activity. This insurance also does not apply to any ~bodily injury" sustained by an "insured" while the "auto" is being prepared for such a contest or activity. D. Limit of Insurance Regardless of the number of covered "autos", ~insureds", premiums paid, claims made or vehicles involved in the ~accident", the most we will pay for "bodily injury" for each "insured" injured in any one "accident" is the Limit Of Insurance for Auto Medical Payments Coverage shown in the Declarations. No one will be entitled to receive duplicate payment for the same elements of "loss" under this coverage and any Liability Coverage Form, Uninsured Motorists Coverage Endorsement or Underinsured Motorists Coverage Endorsement attached to this Coverage Part. AIMUCA0011 3 2003 Page 6 of 14 Includes copyrighted matedal of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1996 ARCH INSURANCE COMPANY SECTION IV -- PHYSICAL DAMAGE COVERAGE A. Coverage 1. We will pay for "loss" to a covered "auto" or its equipment under: a. Comprehensive Coverage From any cause except: ('1) The covered "auto's" collision with another object; or (2) The covered "auto's" overturn. b. Specified Causes of Loss Coverage Caused by: (~1) Fire, lightning or explosion; (2) Theft; (3) Windstorm, hail or earthquake; (4) Flood; (5) Mischief or vandalism; or (6) The sinking, burning, collision or derailment of any conveyance transporting the covered "auto". c. Collision Coverage. Caused by: ~"~ (1) The covered "autos" collision with another object; or (2) The covered "auto's" overturn. 2. Towing We will pay up to the limit shown in the Declarations for towing and labor costs incurred each time a covered "auto" of the private passenger type is disabled. However, the labor must be performed at the place of disablement. 3. Glass Breakage -- Hitting a Bird or Animal -- Falling Objects or Missiles, If you carry Comprehensive Coverage for the damaged covered "auto", we will pay for the following under Comprehensive Coverage: a. Glass breakage; b. "Loss" caused by hitting a bird or animal; and c. "Loss" caused by falling objects or missiles. However, you have the option of having glass breakage caused by a covered "auto's" collision or overturn considered a "loss" under Collision Coverage. 4. Coverage Extensions a. Hired Auto If hired "autos" are covered "autos" for Liability Coverage and if Comprehensive, Specified Causes of Loss, or Collision coverages are provided under this Coverage Form for any "auto" you own, then the Physical Damage Coverages provided are extended to ~autos" you hire. However, this extension does not apply to any ~auto" that is leased, hired, rented or borrowed with a driver. The most we will pay for loss to any hired "auto" is the lesser of $35,000 or Actual Cash Value or Cost of Repair, minus a deductible. The deductible will be equal to the largest deductible applicable to any owned "auto" for that coverage. No deductible applies to "loss" caused by fire or lightning. Subject to the above limit and deductible provisions, we will provide coverage equal to the broadest coverage applicable to any covered "auto" you own. We will also cover loss of use of the hired "auto" if it results from an "accident" for which you are legally liable and the lessor incurs an actual financial loss, subject to a maximum of $500 per "accident". b. Lease Gap Coverage ~[f a long-term leased "auto" is a covered "auto" and the lessor is named as an Additional Insured - Lessor, in the event of a total "loss" we will pay your additional legal obligation to the lessor for any difference between the actual cash value of the "auto" at the time of the "loss" and the "outstanding balance" of the lease. ~Outstanding balance" means the amount you owe on the lease at the time of ~loss" less any amounts representing taxes; overdue payments; penalties, interest or charges resulting from overdue payments; additional mileage charges; excess wear and tear charges; and lease termination fees. c. Temporary Transportation Expense We will pay up to $50 per day to a maximum of $1,000 for temporary transportation expense incurred by you because of the total theft of a covered AIMUCA0011 3 2003 Page 7 of 14 Includes copyrighted material of Insurance Services Office, inc., with its permission. Copyright, Insurance Services Office, Inc., 1996 ARCH INSURANCE COMPANY "auto" of the private passenger type. We will pay only for those covered "autos" for which you carry either Comprehensive or Specified Causes of Loss Coverage. We will pay for transportation expenses incurred during the period beginning 48 hours after the theft and ending, regardless of the policy's expiration, when the covered "auto" is returned to use or we pay for its '!lOSS". B, Exclusions 1. We will not pay for "loss" caused by or resulting from any of the following. Such "loss" is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the "loss". a. Nuclear Hazard. ('1) The explosion of any weapon employing atomic fission or fusion; or (2) Nuclear reaction or radiation, or radioactive contamination, however caused. b. War or Military Action ('1) War, including undeclared or civil war; (2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hindering or defending against any of these. 2. We will not pay for "loss" to any covered "auto" while used in any professional or organized racing or demolition contest or stunting activity, or while practicing for such contest or activity. We will also not pay for "loss" to any covered ~auto" while that covered "auto" is being prepared for such a contest or activity. 3. We will not pay for "loss" caused by or resulting from any of the following unless caused by other "loss" that is covered by this insurance: a. Wear and tear, freezing, mechanical or electrical breakdown. b. Blowouts, punctures or other road damage to tires. AIMUCA0011 3 2003 However, this exclusion does not apply to "loss" caused by the discharge of an air bag. Page 8 of 14 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1996 ARCH INSURANCE COMPANY We will not pay for "loss" to any of the following: a. Tapes, records, discs or other similar audio, visual or data electronic devices designed for use with audio, visual or data electronic equipment. b. Any device designed or used to detect speed measuring equipment such as radar or laser detectors and jamming apparatus intended to elude or disrupt speed measurement equipment. c. Any electronic equipment, without regard to whether this equipment is permanently installed, that receives or transmits audio, visual or data signals and that is not designed solely for the reproduction of sound. d. Any accessories used with the electronic equipment described in paragraph c. above. Exclusion 4.a. above does not apply to any equipment that is installed in a covered "auto" which is: ('1) Owned by a police or fire department; (2) Equipped as an emergency vehicle and owned by a public entity or any of its agencies; or (3) Equipped as an emergency vehicle and owned by a volunteer fire department, volunteer rescue squad or volunteer ambulance corps. Exclusions 4.c. and 4.d. above do not apply to: (1) Equipment designed solely for the re- production of sound and accessories used with such equipment, provided such equipment is permanently installed in the covered "auto" at the time of the "loss" or such equipment is removable from a housing unit which is permanently installed in the covered "auto" at the time of the "loss", and such equipment is designed to be solely operated by use of the power from the "auto's" electrical system, in or upon the covered "auto"; or (2) Any other electronic equipment that is: (a) Necessary for the normal operation of the covered "auto" or the monitoring of the covered "auto's" operating system; or (b) An integral part of the same unit housing any sound reproducing equipment described in (1) above and permanently installed in the AIMUCA0011 3 2003 opening of the dash or console of the covered "auto" normally used by the manufacturer for installation of a radio. C. Limit Of Insurance The most we will pay for "loss" in any one "accident" is the lesser of: I. The actual cash value of the damaged or stolen property as of the time of the "loss"; or 2. The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality. D. Deductible For each covered "auto", our obligation to pay for, repair, return or replace damaged or stolen property will be reduced by the applicable deductible shown in the Declarations. Any Comprehensive Coverage deductible shown in the Declarations does not apply to '1. "Loss" caused by fire or lightning; or 2. "Loss" to glass used in the windshield or windows if the glass is repaired rather than replaced. SECTION V -- BUSINESS AUTO CONDITIONS The following conditions apply in addition to the Common Policy Conditions: A. Loss Conditions 1. Appraisal For Physical Damage Loss If you and we disagree on the amount of "loss", either may demand an appraisal of the "loss". In this event, each party will select a competent appraiser. The two appraisers will select a competent and impartial umpire. The appraisers will state separately the actual cash value and amount of "loss". If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: a. Pay its chosen appraiser, and b. Bear the other expenses of the appraisal and umpire equally. If we submit an appraisal, we will still retain our right to deny the claim. 2. Duties In The Event Of Accident, Claim, Suit Or Loss. We have no duty to provide coverage under this policy unless there has been full compliance with the following duties: Page 9 of 14 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1996 ARCH INSURANCE COMPANY a. In the event of"accident", claim, "suit" or "loss", you must give us or our authorized representative prompt notice of the "accident" or "loss". Include: (1) How, when and where the "accident" or "loss" occurred; (2) The "insured's" name and address; and (3) To the extent possible, the names and addresses of any injured persons and witnesses. b. Additionally, you and any other involved "insured" must: (~1) Assume no obligation, make no payment or incur no expense without our consent, except at the "insured's' own cost. (2) Immediately send us copies of any request, demand, order, notice, summons or legal paper received concerning the claim or "suit". (3) Cooperate with us in the investigation or settlement of the claim or defense against the "suit". (4) Authorize us to obtain medical records or other pertinent information. (5) Submit to examination, at our expense, by physicians of our choice, as often as we reasonably require. c. If there is "loss" to a covered "auto" or its equipment you must also do the following: (1) Promptly notify the police if the covered "auto" or any of its equipment is stolen. (2) Take all reasonable steps to protect the covered "auto" from further damage. Aisc keep a record of your expenses for consideration in the settlement of the claim. (3) Permit us to inspect the covered "auto" and records proving the "loss" before its repair or disposition. (4) Agree to examinations under oath at our request and give us a signed statement of your answers. Legal Action Against Us No one may bring a legal action against us under this Coverage Form until: a. There has been full compliance with all the terms of this Coverage Form; and b. Under Liability Coverage, we agree in writing that the "insured" has an obligation to pay or until the amount of that obligation has finally been determined by judgment after trial. No one has the right under this policy to bring us into an action to determine the "insured's" liability. 4, Loss Payment -- Physical Damage Coverages At our option we may: a. Pay for, repair or replace damaged or stolen property; b. Return the stolen property, at our expense. We will pay for any damage that results to the "auto" from the theft; or c. Take all or any part of the damaged or stolen property at an agreed or appraised value. 5. Transfer Of Rights Of Recovery Against Others To Us If any person or organization to er for whom we make payment under this Coverage Form has rights to recover damages from another, those rights are transferred to us. That person or organization must do everything necessary to secure our rights and must do nothing after "accident" or "loss" to impair them. This condition does not apply to SECTION III -- MEDICAL PAYMENTS. B. General Conditions I. Bankruptcy Bankruptcy or insolvency of the "insured" or the "insured's" estate will not relieve us of any obligations under this Coverage Form. 2. Concealment, Misrepresentation Or Fraud This Coverage Form is void in any case of fraud by you at any time as it relates to this Coverage Form. It is also void if you or any other "insured", at any time, intentionally conceal or misrepresent a material fact concerning: a. This Coverage Form; b. The covered "auto"; c. Your interest in the covered "auto"; or d. A claim underthis Coverage Form. AIMUCA0011 3 2003 Page 10 of 14 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1996 ARCH INSURANCE COMPANY A[MUCA0011 3 2003 Liberalization If we revise the Coverage Form to provide more coverage without additional premium charge, your policy will automatically provide the additional coverage as of the day the revision is effective in your state. 4. No Benefit To Bailee-- Physical Damage Coverages We will not recognize any assignment or grant any coverage for the benefit of any person or organization holding, storing or transporting property for a fee regardless of another provision of this Coverage Form. 5. Other Insurance a. For any covered ~auto" you own, this Coverage Form provides primary insurance. For any covered "auto" you do not own, the insurance provided by this Coverage Form is excess over any other collectible insurance. However, while a covered "auto" which is a "trailer~' is connected to another vehicle, the Liability Coverage this Coverage Form provides for the "traile¢' is: (1) Excess while it is connected to a motor vehicle you do not own. (2) Primary while it is connected to a covered "auto" you own. b. For Hired Auto Physical Damage coverage, any covered ~auto" you lease, hire, rent or borrow is deemed to be a covered "auto" you own. However, any "auto" that is leased, hired, rented or borrowed with a driver is not a covered "auto". c. Regardless of the provisions of paragraph a. above, this Coverage Form's Liability Coverage is primary for any liability assumed under an "insured contract". d. When this Coverage Form and any other Coverage Form or policy covers on the same basis, either excess or primary, we will pay only our share. Our share is the proportion that the Limit of Insurance of our Coverage Form bears to the total of the limits of all the Coverage Forms and policies covering on the same basis. 6. Policy Period, Coverage Territory a. Under this Coverage Form, we cover "accidents" and "losses" occurring: (1) During the policy period shown in the Declarations; and (2) Within the coverage territory. b. The coverage territory is: (1) The united states of America; Page 11 of 14 Includes copyrighted matedal of Insurance Services Office, Inc. with its permission. Copyright, Insurance Services Office, Inc., 1996 ARCH INSURANCE COMPANY (2) The territories and possessions of the United States of America; (3) Puerto Rico; (4) Canada; and ($) Anywhere in the world for a covered "auto" that is leased, hired, rented or borrowed without a driver for a period of 30 days or less provided the "insured's" responsibility to pay damages is determined in a "suit" on the merits, in the territory described in paragraph b. (1), (2), (3) or (4) above or in a settlement we agree to. We also cover "loss" to, or "accidents" involving, a covered "auto" while being transported between any of the territories described in paragraph b. (1), (2), (3), or (4) above. 7. Two Or More Coverage Forms Or Policies Issued By Us If this Coverage Form and any other Coverage Form or policy issued to you by us or any company affiliated with us apply to the same "accident", the aggregate maximum Limit of Insurance under all the Coverage Forms or policies shall not exceed the highest applicable Limit of Insurance under any one Coverage Form or policy. This condition does not apply to any Coverage Form or policy issued by us or an affiliated company specifically to apply as excess insurance over this Coverage Form. SECTION VI -- DEFINITIONS A. "Accident" includes continuous or repeated exposure to the same conditions resulting in "bodily injury" or "property damage". B. "Auto" means a land motor vehicle, "trailer" or semitrailer designed for travel on public roads but does not include "mobile equipment". However, if you are a govemmental entity, any land motor vehicle or ~trailer" you own or lease that is designed for travel on public roads is an "auto" and not "mobile equipment" if the sole reason for considering it "mobile equipment" is such vehicle is used solely on roads you own. C. "Bodily injury" means bodily injury, sickness or disease sustained by any person, including mental anguish or death resulting from any of these at anytime. D. "Covered pollution cost or expense" means any cost or expense arising out of: 1. Any request, demand or order; or AIMUCA0011 3 2003 2. Any claim or :suit" by or on behalf of a governmental authority demanding that the "insured~ or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants". "Covered pollution cost or expense" does not include any cost or expense arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants': a. That are, or that are contained in any property that is: (1) Being transported or towed by, handled, or handled for movement into, onto or from the covered "auto"; (2) Otherwise in the course of transit by or on behalf of the "insured"; (3) Being stored, disposed of, treated or processed in or upon the covered "auto"; or b. Before the "pollutants" or any property in which the ~pollutants" are contained are moved from the place where they are accepted by the "insured" for movement into or onto the covered "auto"; or c. After the "pollutants" or any property in which the "pollutants" are contained are moved from the covered "auto" to the place where they are finally delivered, disposed of or abandoned by the "insured". Paragraph a. above does not apply to fuels, lubricants, fluids, exhaust gases or other similar "pollutants" that are needed for or result from the normal electrical, hydraulic or mechanical functioning of the covered "auto" or its parts, if: (1) The "pollutants" escape, seep, migrate, or are discharged, dispersed or released directly from an "auto" part designed by its manufacturer to hold, store, receive or dispose of such "pollutants"; and (2} The "bodily injury", "property damage' or "covered pollution cost or expense~ does not arise out of the operation of any equipment listed in paragraphs 6.b. or 6.c. of the definition of "mobile equipment". Paragraphs b. and c. above do not apply to "accidents" that occur away from premises owned by or rented to an Page 12 of 14 Includes copyrighted matedal of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, inc., 1996 ARCH INSURANCE COMPANY "insured" with respect to "pollutants" not in or upon a covered "auto" if: (l) The "pollutants" or any property in which the "pollutants" ara contained ara upset, overturned or damaged as a rasult of the maintenance or use of a covered "auto"; and (2) The discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused diractly by such upset, overturn or damage. "Employee" includes a "leased worker' and a substitute teacher. "Employee" does not include a "temporary worker". "Insured" means any person or organization qualifying as an insurad in the Who Is An Insured provision of the applicable coverage. Except with raspect to the Limit of Insurance, the coverage afforded applies separately to each insurad who is seeking coverage or against whom a claim or "suit" is brought. "Insured contract" means: A lease of premises; 2. A sidetrack agraement; 3. Any easement or license agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; 4. An obligation, as requirad by ordinance, to indemnify a municipality, except in connection with work for a municipality; 5. That part of any other contract or agreement pertaining to your business (including an indemnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another to pay for "bodily injury" or "property damage" to a third party or organization. Tort liability means a liability that would be imposed by law in the absence of any contract or agreement; 6. That part of any contract or agreement entered into, as part of your business, pertaining to the rental or lease, by you or any of your "employees", of any "auto". However, such contract or agreement shall not be considered an "insured contract" to the extent that it obligates you or any of your "employees" to pay for "property damage" to any "auto" rented or leased by you or any of your "employees". An "insured contract" does not include that part of any contract or agreement: a. That indemnifies a railraad for "bodily injury" or "property damage" adsing out of construction or demolition operations, within 50 feet of any railroad property and affecting any railroad bridge or trastle, tracks, roadbeds, tunnel, underpass or crossing; or b. That pertains to the loan, lease or rantal of an "auto" to you or any of your "employees", if the "auto" is loaned, leased or rented with a driver; or c. That holds a person or organization engaged in the business of transporting property by "auto" for hire harmless for your use of a covered "auto" over a route or territory that person or organization is authorized to serve by public authority. H. "Leased worker" means a person leased to you by a labor leasing firm under an agraement between you and the labor leasing firm, to perform duties ralated to the conduct of your business. "Leased worker' does not include a "temporary worker'. I. "Loss" means direct and accidental loss or damage. J. "Mobile equipment" means any of the following types of land vehicles, including any attached machinery or equipment: 1. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; 2. Vehicles maintained for use solely on or next to premises you own or rent; 3. Vehicles that travel on crawler treads; 4. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted: a. Power cranes, shovels, loaders, diggers or drills; or b. Road construction or resurfacing equipment such as graders, scrapers or rollers. 5. Vehicles not described in paragraphs '1., 2. 3., or 4. above that are not self-prapelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: a. Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment; or AIMUCA0011 3 2003 Page 13 of 14 includes copyrighted material of Insurance Services Office, inc., with its permission. Copyright, Insurance Services Office, Inc., 1996 ARCH INSURANCE COMPANY b. Cherry pickers and similar devices used to raise or lower workers. 6. Vehicles not described in paragraphs t., 2, 3. or 4. above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not "mobile equipment" but will be considered "autos": a. Equipment designed primarily for: (1) Snow removal; (2) Road maintenance, but not construction or resurfacing; or (3) Street cleaning; b. Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and c. Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting or well servicing equipment. K. "Occupying" means in, upon, getting in, on, out or off. L. "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. M. "Property damage" means damage to or loss of use of tangible property. N. "Suit" means a civil proceeding in which: '1. Damages because of "bodily injury" or "property damage"; or 2. A "covered pollution cost or expense", to which this insurance applies are alleged. "Suit" includes: a. An arbitration proceeding in which such damages or "covered pollution costs or expenses" are claimed and to which the "insured" must submit or does submit with our consent; or b. Any other alternative dispute resolution proceeding in which such damages or "covered pollution costs or expenses" are claimed and to which the insured submits with our consent. O. "Temporary worke~' means a person who is furnished to you to substitute for a permanent "employee' on leave or to meet seasonal or short-term workload conditions. P. "Traile¢' includes semitrailer. AIMUCA0011 3 2003 Page 14 of 14 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, insurance Services Office, Inc., 1996 ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12.01 NOON A.M. KC001 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EMPLOYEES AND VOLUNTEERS AS INSUREDS This endomement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM Additional Premium: $ INCLUDED The following Es added to SECTION II -- LIABILITY COVERAGE, A. 1. Who Is An Insured: Any "employee" or volunteer of yours is an "insured" while using a covered "auto" you don't own, hire or borrow in your business. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE AIMUCA0025 (3 2003) Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, ~nsurance Services Office, Inc., 1997 DATE ARCHINSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) iNSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PHYSICAL DAMAGE TO VOLUNTEERS' OR EMPLOYEES' PERSONAL AUTOS This endomement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM For "autos" owned by your volunteers or "employees", SECTION IV- PHYSICAL DAMAGE COVERAGE, A. Coverage, 4. Coverage Extensions is amended to include the following: We will pay up to $500 or the amount of the deductible under any automobile policy available to your volunteers or "employees," whichever is less, for any "loss" described under paragraph A.1. of this section to any "auto" owned by your volunteer or "employee" while being used in connection with your business. In no event will we pay for any "loss" under this endorsement to any "auto" owned, leased, hired, rented or borrowed by you. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUCA0004 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A,M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EMERGENCY RESPONSE EMPLOYEE'S OR VOLUNTEER'S PERSONAL EFFECTS IN AUTOS This endorsement modifies insurance under the following: BUSINESS AUTO COVERAGE FORM The following Coverage Extension is added to SECTION IV-- PHYSICAL DAMAGE COVERAGE: Coverage Extension -- Personal Effects I. We will pay for "loss" to personal effects of your "emergency response employees or volunteers" provided: a. Such personal effects are located within an "auto" owned by that "emergency response employee or volunteer"; and b. The "emergency response employee's or volunteer's" "auto" is going to, located at, or returning from an emergency; and c. The "emergency response employee or volunteeF' is acting within the scope of their duties for you. 2. The most we will pay for "loss" to personal effects is: a. $500 any one "employee" or volunteer; or b. $10,000 in any one "accident". 3. We will not pay for "loss" caused by theft to personal effects from an unattended "auto" unless: a, The "auto" is equipped with a fully enclosed body or compartment; and b, The "loss" is a direct result of forcible entry (of which there is visible evidence) into a fully enclosed body, the doors and windows of which were securely locked, or from a compartment which was locked. 4, The insurance provided by this Coverage Extension is excess over any other collectible insurance. $, For the purpose of this endorsement "emergency response employees or volunteers" include your volunteer or employed policemen, firemen, paramedics, and emergency medical technicians. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUCA0009 3 2003 ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAR OR TERRORISM EXCLUSION This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE I. Exclusion '12. War under B. Exclusions of SECTION II - LIABILITY COVERAGE is deleted and replaced by the following: 12. War Or Terrorism "Bodily injury" or "property damage" adsing, directly or indirectly, out of: a. War, including undeclared or civil war; or b. Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or c. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these; or d. "Terrorism", including any action taken in hindering or defending against an actual or expected incident of "terrorism" mgardless of any other cause or event that contributes concurrently or in any sequence to the injury or damage. However, with respect to "terrorism", this exclusion only applies if one or more of the following are attributable to an incident of "terrorism": a. The total of insured damage to all types of propelty exceeds $25,000,000. In determining whether the $25,000,000 threshold is exceeded, we will include all insured damage sustained by property of all persons and entities affected by the "terrorism" and business interruption losses sustained by owners or occupants of the damaged property. For the purpose of this provision, insured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the application of any terrorism exclusions; or b. Fifty or more persons sustain death or serious physical injury. For the purposes of this prevision, serious physical injury means: 11.12.i.a.l. Physical injury that involves a substantial risk of death; or 11.12.i.a.2. Protracted and obvious physical disfigurement; or 11.12.i.a.3. Protracted loss of or impairment of the function of a bodily member or organ; or c. The "terrorism" involves the use, release or escape of nuclear materials, or directly or indirectly results in nuclear reaction or radiation or radioactive contamination; or d. The "terrorism" is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or AIMUCA0043 3 2003 Page 1 of 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Officer, Inc., 2001 ARCH INSURANCE COMPANY e. Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the "terrorism" was to release such materials. Paragraphs a. and b., immediately preceding, describe the thresholds used to measure the magnitude of an incident of "terrorism" and the circumstances in which the threshold will apply for the purpose of determining whether the Terrorism Exclusion will apply to that incident. When the Terrorism Exclusion applies to an incident of "terrorism", there is no coverage under this Coverage Part. In the event of any incident of "terrorism" that is not subject to the Terrorism Exclusion, coverage does not apply to any loss or damage that is otherwise excluded under this Coverage part. Multiple incidents of "terrorism" which occur within a seventy-two hour period and appear to be carried out in concert or to have a related purpose or common leadership shall be considered to be one incident. II. The following definition is added to SECTION VI - DEFINITIONS: "Terrorism" moans activities against persons, organizations or property of any nature: '1. That involve the following or preparation for the following: a. Use or threat of force or violence; or b. Commission or threat of a dangerous act; or c. Commission or threat of an act that interferes with or disrupts an electronic, communication, information, or mechanical system; and 2. When one or both of the following applies: a. The effect is to intimidate or coerce a government or the civilian population or any segment thereof, or to disrupt any segment of the economy; or b. It appears that the intent is to intimidate or coerce a government, or to further political, ideological, religious, social or economic objectives or to express (or express opposition to) a philosophy or ideology. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUCA0043 3 2003 Page 2 of 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Officer, Inc., 2001 POLICY NUMBER: COMMERCIAL AUTO CA 21 44 01 95 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY, INDIANA UNINSURED MOTORISTS COVERAGE For a covered "auto" licensed or principally garaged in, or "garage operations" conducted in, Indiana, this en- dorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM MOTOR CARRIERCOVERAGEFORM TRUCKERS COVERAGEFORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modi- fied by the endorsement. This endorsement changes the policy effective on the inception date of the policy unless another date is indi- cated below. Endorsement Effective Named Insured Countersigned By (Authorized Representative) SCHEDULE I"Bodily Injury" $ Each "Accident" "Bodily Injury" $ Each "Accident" and Property Damage" Section C - EXCLUSIONS applies in its entirety unless an "X" is entered below: [] If an "X" is entered in this box, exclusion (8.) does not apply. (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) A. COVERAGE 1. We will pay all sums the "insured" is legaJly entitled to recover as compensatory damages from the owner or driver of an "uninsured mo- tor vehicle". The damage must result from: a. "Bodily injury" sustained by the "insured" and caused by an "accident", with an "unin- sured motor vehicle", or b. "Property damage" caused by an "accident" with an "uninsured motor vehicle" if the Schedule or Declarations indicates that both "bodily injury" and "property damage" Uninsured Motorists Insurance apply. The owner's or driver's liability for these dam- ages must result from the ownership, mainte- nance or use of the "uninsured motor vehicle". B. WHO IS AN INSURED 1. You. 2. If you are an individual, any "family member". 3. Anyone else "occupying" a covered "auto" or a temporary substitute for a covered "auto". The covered "auto" must be out of service because of its breakdown, repair, servicing, loss or de- struction. CA 21 44 01 95 Copyright, Insurance Services Office, Inc., 1995 Page 1 of 3 [] 4. Anyone for damages he or she is entitled to recover because of "bodily injury" sustained by another "insured". C. EXCLUSIONS This insurance does not apply to: 1. Any claim settled without our consent. 2. The direct or indirect benefit of any insurer or self-insurer under any workers' compensation, disability benefits or similar law, 3. The direct or indirect benefit of any insurer of property. 4. "Bodily injury" if sustained by: a. You while "occupying" or when struck by any vehicle owned by you that is not a coy- ered "auto" under this Coverage Form; or b. Any "family member" while "occupying" or when struck by any vehicle owned by you that is insured on a primary basis under any other Coverage Form or policy, $. "Property damage" to an "auto" or to property contained in an "auto" owned by you which is not a covered "auto", 6. Any "insured" using a vehicle without a rea- sonable belief that the "insured" is entitled to do so. 7. "Property damage" for which the "insured" has been or is entitted to be compensated by other property or physical damage insurance. 8. The first $300 of the amount of "property dam- age" to the property of each "insured" as the result of any one "accident". This exclusion does not apply if your covered "auto" is legally parked and unoccupied when involved in an "accident" with an "uninsured motor vehicle". 9. "Property damage" caused by a hit-and-run vehicle. 10. Punitive or exemplary damages. D. LIMIT OF INSURANCE 1. Regardless of the number of covered "autos", "insureds", premiums paid, claims made or vehicles involved in the "accident", the most we will pay for all damages resulting from any one "accident" is the limit shown in this eh- dorsement. 2. The Limit of insurance under this coverage shall be reduced by all sums paid or payable by or for anyone who is legally responsible, in- cluding all sums paid under this Coverage Form's LIABILITY COVERAGE. 3. No one will be entitled to receive duplicate payments for the same elements of "loss" un- der this Coverage Form and any Liability Cov- erage Form or Medical Payments Coverage endorsement attached to this Coverage Part. We will not make a duplicate payment under this Coverage for any element of "loss" for which payment has been made by or for any- one who is legally responsible. We will not pay for any element of "loss" if a person is entitled to receive payment for the same element of "loss" under any workers' compensation, disability benefits or similar law. 4. We will not pay for a loss which is paid or payable under PHYSICAL DAMAGE COVER- AGE. $. No "insured" shall recover duplicate payments for the same elements of loss or payments in excess of damages sustained. E. CHANGES IN CONDITIONS The CONDITIONS are changed for UNINSURED MOTORISTS COVERAGE as follows: '1. OTHER INSURANCE in the Business Auto and Garage Coverage Forms and OTHER IN- SURANCE - PRIMARY AND EXCESS IN- SURANCE PROVISIONS in the Truckers and Motor Carder Coverage Forms is replaced by the following: If there is other applicable insurance available under one or more policies or provisions of coverage: a. The maximum recovery under all Coverage forms or policies combined may equal but not exceed the highest applicable limit for any one vehicle under any Coverage Form or policy providing coverage on either a primary or excess basis, b. Any insurance we provide with respect to a vehicle you do not own shall be excess over any other collectible uninsured motor- ists insurance providing coverage on a pri- mary basis. c. If the coverage under this Coverage Form is provided: (1} On a primary basis, we will pay only our share of the loss that must be paid un- der insurance providing coverage on a primary basis. Our share is the propor- tion that our limit of liability bears to the total of all applicable limits of liability for coverage on a primary basis. Page 2 of 3 Copyright, Insurance Services Office, Inc., 1995 CA 2'~ 44. 0'1 95 [] (2) On an excess basis, we will pay only our share of the loss that must be paid un- der insurance providing coverage on an excess basis. Our share is the propor- tion that our limit of liability bears to the total of all applicable limits of liability for coverage on an excess basis. 2. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US is changed by adding the following: a. If we make any payment and the "insured" recovers from another party, the "insured" shall hold the proceeds in trust for us and pay us back the amount we have paid. b. If we make a payment because the insurer of the "uninsured motor vehicle" is or be- comes insolvent, the TRANSFER OF RIGHTS OF RECOVERY AGAINST OTH- ERS TO US Condition does not apply to any rights of recovery against: (1} The Indiana Guaranty Fund; or (2) The "insured" of the insolvent insurer, except in amounts that exceed the limit of liability of the Coverage Form or poi- icy that was issued by that insolvent in- surer. 3. The following Condition is added: ARBITRATION a. If we and an "insured" disagree whether the "insured" is legally entitled to recover dam- ages from the owner or driver of an "unin- sured motor vehicle" or do not agree as to the amount of damages that are recover- able by that "insured", then the matter may be arbitrated. However, disputes concern- ing coverage under this endorsement may not be arbitrated. Either party may make a written demand for arbitration. In this event, each party will select an arbitrator. The two arbitrators will select a third. If they cannot agree within 30 days, either may request that selection be made by a judge of a court having jurisdiction. Each party will pay the expenses it incurs and bear the ex- penses of the third arbitrator equally. b. Unless both parties agree otherwise, arbi- tration will take place in the county in which the "insured" lives. Local rules of law as to arbitration procedure and evidence will ap- ply. A decision agreed to by two of the arbi- trators will be binding as to: (1) Whether the "insured" is legally entitled to recover damages, and (2) The amount of damages. This applies only if the amount does not exceed the minimum limit for liability specified by the financial responsibility law of Indi- ann. If the amount exceeds that limit, ei- ther party may demand the right to a trial. This demand must be made within 60 days of the arbitrators' decision. If this demand is not made, the amount of damages agreed to by the arbitrators will be binding. F, ADDITIONAL DEFINITIONS As used in this endorsement: 1. "Family member" means a person related to you by blood, marriage or adoption who is a resident of your household, including a ward or foster child. 2. "Occupying" means in, upon, getting in, on, out or off. 3. "Property damage" means damage to a cov- ered "auto" or to property owned by you or a "family member" while contained in a covered "auto". However, "property damage" does not include loss of use of damaged or destroyed property. This definition replaces the definition in the policy. 4. "Uninsured motor vehicle" means a land motor vehicle or trailer: a. For which no liability bond or policy at the time of an "accident" provides at least the amounts required by the financial responsi- bility law of Indiana, or b. For which an insuring or bonding company denies coverage or is OF becomes insol- vent, or c. Which is a hit-and-run vehicle and neither the driver nor owner can be identified. A hit-and-run vehicle is one that causes "bod- ily injury" to an "insured" by hitting the "in- sured", a covered "auto" or a vehicle an "insured" is "occupying". However, "uninsured motor vehicle" does not include any vehicle: a. Owned or operated by a self-insurer under any applicable motor vehicle law, except a self-insurer who is or becomes insolvent and can not provide the amounts required by that motor vehicle law, b. Owned by a governmental unit or agency, c. Designed for use mainly off public roads while not on public roads. CA 21 44 01 95 Copyright, Insurance Services Office, Inc., 1995 Page 3 of 3 [] POLICY NUMBER: COMMERCIAL AUTO CA31 1601 95 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. INDIANA UNDERINSURED MOTORISTS COVERAGE For a covered "auto" licensed or principally garaged in, or "garage operations" conducted in, Indiana, this en- domement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM MOTOR CARRIER COVERAGE FORM TRUCKERS COVERAGE FORM With respect to coverage provided by this endorsement, the previsions of the Coverage Form apply unless modi- fied by the endorsement. This endorsement changes the policy effective on the inception date of the policy unless another date is indi- cated below: Indorsement Effective amed Insured Countersigned By (Authorized Representative) SCHEDULE I "Bodily Injury" $ Each "Accident" (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) A. COVERAGE 1. We will pay all sums the "insured" is legally entitled to recover as compensatory damages from the owner or driver of an "undednsured motor vehicle". The damage must result from "bodily injury" sustained by the "insured" and caused by an "accident", with an "underinsured motor vehicle". The owners or ddver's liability for this damage must result from the ownership, maintenance or use of the "underinsured motor vehicle". 2. We will pay under this coverage only if a. or b. below applies: a. The limits of any applicable liability bonds or policies have been exhausted by judg- ments or payments; or b. A tentative settlement has been made between an "insured" and the insurer of an "underinsured motor vehicle" which would exhaust the limits of liability under any ap- plicable bond or policy, and we: (1) Have been given prompt written notice of such tentative settlement; and (2) Advance payment to the "insured" in an amount equal to the tentative settlement within 30 days after the receipt of notifi- cation. B. WHO IS AN INSURED 1. You. 2. If you are an individual, any "family member". 3. Anyone else "occupying" a covered "auto" or a temporary substitute for a covered "auto". The covered "auto" must be out of service because of its breakdown, repair, servicing, loss or de- struction. 4. Anyone for damages he or she is entitled to recover because of "bodily injury" sustained by another "insured". CA 3t 16 01 95 Copyright, insurance Services Office, Inc., 1995 Page t of 4 [] C. EXCLUSIONS This insurance does not apply to: '1. The direct or indirect benefit of any insurer or self-insurer under any workers' compensation, disability benefits or similar law. 2. The direct or indirect benefit of any insurer of property. 3. "Bodily injury" if sustained by: a. You while "occupying" or when struck by any vehicle owned by you that is not a cov- ered "auto" under this Coverage Form; or b. Any "family member" while "occupying" or when struck by any vehicle owned by you that is insured on a primary basis under any other Coverage Form or policy. 4. Any "insured" using a vehicle without a rea- sonable belief that the "insured" is entitled to do so. 5. Punitive or exemplary damages. D. LIMIT OF INSURANCE 1. Regardless of the number of covered "autos", "insureds", premiums paid, claims made or vehicles involved in the "accident", the most we will pay for all damages resulting from any one "accident" is the limit shown in this en- dorsement. 2. The Limit of insurance under this coverage shall be reduced by all sums paid or payable by or for anyone who is legally responsible, in- cluding all sums paid under this Coverage Form's LIABILITY COVERAGE. 3. No one will be entitled to receive duplicate payments for the same elements of "loss" un- der this Coverage Form and any Liability Cov- erage Form or Medical Payments Coverage endorsement attached to this Coverage Part. We will not make a duplicate payment under this Coverage for any element of "loss" for which payment has been made by or for any- one who is legally responsible. We will not pay for any element of "loss" if a person is entitled to receive payment for the same element of "loss" under any workers' compensation, disability benefits or similar law. 4. No "insured" shall recover duplicate payments for the same elements of loss or payments in excess of damages sustained. E. CHANGES IN CONDITIONS The CONDITIONS are changed for UNDERIN- SURED MOTORISTS COVERAGE as follows: '1. OTHER INSURANCE in the Business Auto and Garage Coverage Forms and OTHER IN- SURANCE - PRIMARY AND EXCESS IN- SURANCE PROVISIONS in the Truckers and Motor Carrier Coverage Forms is replaced by the following: If there is other applicable insurance available under one or more policies or provisions of coverage: a. The maximum recovery under all Coverage forms or policies combined may equal but not exceed the highest applicable limit for any one vehicle under any Coverage Form or policy providing coverage on either a pdmary or excess basis. b. Any insurance we provide with respect to a vehicle you do not own shall be excess over any other collectible underinsured mo- torists insurance providing coverage on a primary basis. c. If the coverage under this Coverage Form is provided: (l) On a primary basis, we will pay only our share of the loss that must be paid un- der insurance providing coverage on a primary basis. Our share is the propor- tion that our limit of liability bears to the total of all applicable limits of liability for coverage on a primary basis. (2) On an excess basis, we will pay only our share of the loss that must be paid un- der insurance providing coverage on an excess basis. Our share is the propor- tion that our limit of liability bears to the total of all applicable limits of liability for coverage on an excess basis. 2. DUTIES IN THE EVENT OF ACCIDENT, CLAIM, SUIT OR LOSS is changed by adding the following: a. Promptly send us copies of the legal papers if a "suit" is brought. Page 2 of 4 Copyright, Insurance Services Office, Inc., 1995 CA 3'1 '16 01 95 [] b. A person seeking Underinsured Motorists Coverage must also promptly notify us in writing of a tentative settlement between the "insured" and the insurer of the "under- insured motor vehicle" and allow us 30 days to advance payment to that "insured" in an amount equal to the tentative settle- ment to preserve our rights against the in- surer, owner, or operator of such "underin- sured motor vehicle". 3. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US is changed by adding the following: a. If we make any payment and the "insured" recovers from another party, the "insured" shall hold the proceeds in trust for us and pay us back the amount we have paid. b. Our rights do not apply under this provision if we: (1) Have been given prompt wdtten notice of a tentative settlement between an "insured" and the insurer of the "under- insured motor vehicle", and {2) Fail to advance payment to the "in- sured'' in an amount equal to the tenta- tive settlement within 30 days after re- ceipt of such notification. If we advance payment to the "insured" in an amount equal to the tentative set- tlement within 30 days after notification: (a) That payment will be separate from any amount the "insured" is entitled to recover under the provisions of this coverage; and {b) We also have the right to recover the advance payment from the in- surer, or the owner or operator of the "undednsured motor vehicle". c. If we make a payment because the insurer of the "underinsured motor vehicle" is or becomes insolvent, the TRANSFER OF RIGHTS OF RECOVERY AGAINST OTH- ERS TO US Condition does not apply to any rights of recovery against: {1) The Indiana Guaranty Fund; or (2) The "insured" of the insolvent insurer, except in amounts that exceed the limit of liability of the Coverage Form or pol- icy that was issued by that insolvent in- surer. 4. The following Condition is added: ARBITRATION a. If we and an "insured" disagree whether the "insured" is legally entitled to recover dam- ages from the owner or driver of an "under- insured motor vehicle" or do not agree as to the amount of damages that are recov- erable by that "insured", then the matter may be arbitrated. However, disputes con- cerning coverage under this endorsement may not be arbitrated. Either party may make a written demand for arbitration. In this event, each party will select an arbitra- tor. The two arbitrators will select a third. If they cannot agree within 30 days, either may request that selection be made by a judge of a court having jurisdiction. Each party will pay the expenses it incurs and bear the expenses of the third arbitrator equally. b. Unless both parties agree otherwise, arbi- tration will take place in the county in which the "insured" lives. Local rules of law as to arbitration procedure and evidence will ap- ply. A decision agreed to by two of the arbi- trators will be binding as to: (1) Whether the "insured" is legally entitled to recover damages, and (2) The amount of damages. This applies only if the amount does not exceed the minimum limit for liability specified by the financial responsibility law of Indi- ana. If the amount exceeds that limit, ei- ther party may demand the right to a thai. This demand must be made within 60 days of the arbitrators' decision. If this demand is not made, the amount of damages agreed to by the arbitrators will be binding. F. ADDITIONAL DEFINITIONS As used in this endorsement: 1. "Family member" means a person related to you by blood, marriage or adoption who is a resident of your household, including a ward or foster child. 2. "Occupying" means in, upon, getting in, on, out or off. CA 3'1 '16 0'1 95 Copyright, Insurance Services Office, Inc., 1995 Page 3 of 4 [] 3. "Undednsured motor vehicle" means a land motor vehicle or trailer for which the sum of all liability bonds or policies at the the time of an "accident" provides at least the amounts re- quired by the financial responsibility law of In- diana but their limits are less than the limits of this insurance. However, "underinsured motor vehicle" does not include any vehicle: a. Owned or operated by a self-insurer under any applicable motor vehicle law, except a self-insurer who is or becomes insolvent and can not provide the amounts required by that motor vehicle law. b. Owned by a governmental unit or agency. c. Designed for use mainly off public roads while not on public roads. Page 4 of 4 Copyright, insurance Services Office, Inc., 1995 CA 31 '16 0'1 95 [] COMMERCIAL AUTO CA 01 '19 10 01 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READIT CAREFULLY. INDIANA CHANGES For a covered "auto" licensed in, or "garage operations" conducted in, Indiana, this endomement modifies insur- ance provided under the following: BROADENED COVERAGE-GARAGES ENDORSEMENT BUSINESS AUTO COVERAGE FORM GARAGECOVERAGEFORM MOTOR CARRIER COVERAGEFORM PERSONALINJURYLIABILITYCOVERAGE-GARAGESENDORSEMENT TRUCKERS COVERAGEFORM With respect to coverage provided by this endorsement or to any amendment to or replacement thereof, the pro- visions of the Coverage Form apply unless modified by the endorsement. A. Changes In Liability Coverage '1. The following is added to the Pollution Exclu- sion in the Business Auto, Truckers and Motor Carder Coverage Forms and to Pollution Ex- clusion Applicable To "Garage Operations" - Covered "Autos" and Pollution Exclusion Applicable To "Garage Operations" - Other Than Covered "Autos" in the Garage Cover- age Form: This Pollution Exclusion applies whether or not such irritant or contaminant has any function in your business, operations, premises, site or location. 2. If the Broadened Coverage - Garages En- dorsement is attached, then Exclusion B.l.b. in the Broadened Coverage - Garages En- dorsement is revised by the addition of the fol- lowing: This Pollution Exclusion applies whether or not such irritant or contaminant has any function in your business, operations, premises, site or location. 3. If the Personal Injury Liability Coverage - Ga- rages Endorsement is attached, then Exclusion B.l.h. in the Personal Injury Liability Coverage - Garages Endorsement is revised by the addi- tion of the following: This Pollution Exclusion applies whether or not such irritant or contaminant has any function in your business, operations, premises, site or location. B. Changes In Conditions Other Insurance in the Business Auto and Ga- rage Coverage Forms and Other Insurance - Primary And Excess Insurance Provisions in the Truckers and Motor Carder Coverage Forms is changed by adding the following: 1. When two coverage forms providing liability coverage apply to an "auto" and: a. One provides coverage to a named insured engaged in the business of selling, repair- ing, servicing, delivering, testing, road test- ing, parking or storing "autos", and b. The other provides coverage to a person not engaged in that business, and c. At the time of an "accident" a person de- scribed in 1.b. is operating an "auto" owned by the business described in l.a., then that person's liability coverage is primary and the coverage form issued to a business de- scribed in 1.a. is excess over any coverage available to that person. 2. When two coverage forms providing liability coverage apply to an "auto" and: a. One provides coverage to a named insured engaged in the business of repairing, serv- icing, parking or storing "autos", and b. The other provides coverage to a person not engaged in that business, and CA01 19 1001 © ISO Properties, Inc., 2000 Page 1 of 2 [] c. At the time of an "accident" an "insured" under the coverage form described in 2.a. is operating an "auto" owned by a person described in 2.b., then the liability coverage form issued to the business described in 2.a. is primary and the coverage form is- sued to a person described in 2.b, is ex- cess over any coverage available to the business. Page 2 of 2 © ISO Properties, Inc., 2000 CA 0'1 '19 '10 0'1 [] ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE :ORMING A PART OF (Standard time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12.01 NOON KC001 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DEDUCTIBLE LIABILITY INSURANCE This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM This endorsement changes the policy effective on the inception date of the policy unless another date is indicated above. SCHEDULE Liability Deductible: $250 Per "Accident" "Bodily Injury" Deductible: $ Per Person $ Per "Accident" "Property Damage" Deductible: $ Per "Accident" (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement) LIABILITY COVERAGE is changed as follows: A. LIABILITY COVERAGE DEDUCTIBLE The damages caused in any one "accident "that would otherwise be payable under LIABILITY COVERAGE will be reduced by the liability Deductible shown in the Schedule prior to the application of the LIMIT OF INSURANCE provisioa B. BODILY INJURY LIABILITY COVERAGE DEDUCTIBLES 1. Per Person The damages that would other wise be payable under LIABILITY COVERAGE FOR "bodily injury" sustained by any one person, in any one "accident", will be reduced by the "Bodily Injury" Per Person Deductible shown in the Schedule prior to the application of the LIMIT OF INSURANCE provision. 2. Per Accident The damages that would otherwise be payable under LIABILITY COVERAGE for all "bodily injury" caused in any one "accident" will be reduced by the "Bodily Injury" Per "Accident" Deductible shown in the schedule prior to the application of the LIMIT OF iNSURANCE provision. C. PROPERTY DAMAGE LIABILITY COVERAGE DEDUCTIBLE The damages that would otherwise be payable under LIABILITY COVERAGE FOR "property damage" caused in any one "accident" will be reduced by the "Property Damage" Per "Accident" Deductible shown in the Schedule prior to the application of the LIMIT OF INSURANCE pmvision. D. OUR RIGHT TO REIMBURSEMENT To settle any claim or "suit" we may pay all or any part of any deductible shown in the Scheule. If this happens, you must reimburse us for the deductible or the part of the deductible we paid. ALL OTHER TERMS AND cONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE AIMUCA0022 (3 2003) Copyright, Insurance Services Office, Inc., 1993 DATE ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CUSTOMIZED VEHICLE EXTENSION ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM For covered "autos" described in the Declarations as chief, captain, police, or administrative vehicles, paragraph C. Limit Of Insurance, contained in SECTION IV -- PHYSICAL DAMAGE COVERAGE, is amended to include the following: We will pay the additional repair or replacement costs necessary to customize the damaged "auto" with permanently installed equipment of like kind and quality, without deduction for depreciation. We will also include the cost to install the equipment onto a replacement "auto' if the covered "auto" is not repairable. This customization will include, but is not limited to the following: a. Custom painting and gold leaf lettering; b. Light bars and sirens; c. Permanently installed radios and other communications equipment; d. Permanently installed computer equipment; and e. Permanently installed cameras. Coverage under this endorsement does not apply to any covered "auto" insured on an Agreed Value basis. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUCA0005 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDOESEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. COMMANDEERED AUTO COVERAGE This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM SECTION I -- COVERED AUTOS, A. Description Of Covered Auto Designation Symbols is amended as follows: The description for Symbol 8 = Hired "Autos" Only is deleted in its entirety and is replaced by the following: 8 = Hired "Autos" Only. Only those "autos" you lease, hire, rent, borrow or commandeer. This does not include any ~auto' you lease, hire, rent, or borrow from any of your "employees", student teachers, volunteers, partners or members of their households. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUCA0007 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR, 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FREEZING COVERAGE -- FIRE AND OTHER EMERGENCY VEHICLES This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM Exclusion 3.a., relating to "loss" caused by freezing, contained ia SECTION IV -- PHYSICAL DAMAGE COVERAGE, B. Exclusions, does not apply to: Any "loss" to permanently attached special equipment common to an emergency "auto" caused by freezing from exposure to cold temperatures, unless the "loss" is caused by your failure to properly maintain such equipment. Such equipment shall include, but is not limited to, pumps, gauges and tanks. In no event will the "loss" to an "auto" engine caused by freezing from exposure to cold temperatures be covered by this policy. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUCA0008 3 2003 ARCHINSURANCECOMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12.01 NOON A.M. KC001 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. REPLACEMENT COST INSURANCE This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM SCHEDULE Vehicle Identification Number (VIN) and Description of Covered "Autos" Replacement Cost Per Schedule On File Per Schedule On File For a covered "auto" described in the Schedule above, SECTION IV - PHYSICAL DAMAGE COVERAGE, C. Limit of Insurance is replaced by the following: C. Limit of Insurance The most we will pay for "loss" in any one "accident" is the lesser of the following amounts minus any applicable deductible: 1. The cost of repairing or replacing the damaged or stolen property with property of like kind and quality; or 2. The amount shown in the Schedule. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUCA0013 (3-2003) Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1993 E.D.P. ARCH INSURANCE COMPANY ELECTRONIC DATA PROCESSING SYSTEMS SUPPLEMENTAL DECLARATIONS These Supplemental Declarations form a part of policy number KMPKG0007'I NAMED INSURED: CITY OF JEFFERSONVILLE 501 EAST COURT AVE. JEFFERSONVILLE IN 47130 PREMIUM The Premium for Electronic Data Processing Systems Coverage is $ Included Electronic Data Processing Systems Coverage No coverage is afforded for any Section unless specific Limits of Insurance are provided for that Section. SECTION I - Equipment Coverage (as per schedule attached to this policy) On your property in the amount of: 1. $ 329,750 located at Per Schedule On File With Company 2. $ located at On property leased, rented or under your control in the amount of: 1. $ Included located at 2. $ located at Valuation 1. [] Actual Cash Value with % coinsurance. 2. [] Replacement cost with 100% coinsurance. D. While in transit and temporarily at other Promises $ DEDUCTIBLE The Deductible amount for Section I is $ See Section V SECTION II - Data, Media, Computer Programs A. On your property consisting of"Data", "Media" and "Computer Programs" located at: LOCATION DATA MEDIA UNUSED MEDIA TOTAL 1. Per Schedule On File With Company Included Included 2. While in transit and temporarily at other Premises $ Articles which cannot be replaced must be insured for a specific amount. Included 2. 3. 4. 5. Specific Coverage on "Data", "Media", "Computer Programs" LOCATION SPECIFIC ITEMS NO. OF VALUE OF ITEMS ITEMS "Data" or "Media" not to be insured: $10,000 TOTAL DEDUCTIBLE The Deductible amount for Section II is $ AIMUIM0003 (3 2003) See Section V Page 1 of 2 ARCH INSURANCE COMPANY SECTION III - Extra Expense The limit of Insurance for "Extra Expense" is $ 10~000 DEDUCTIBLE The Deductible amount for Section Ill is $ See Section V. SECTION IV - Loss of Business Income A. The Limit of Insurance for Business Income is $ 0 B. The Coinsurance Percentage is %. DEDUCTIBLE The Waiting Period is See Section V hours. SECTION V - Extensions of Coverage If an "X" is placed in any box preceeding any of the following clauses, the coverage is extended to provide coverage as provided in SECTION V - Extensions of Coverage. r-lA. Combined Deductible The individual deductibles in each Section that are marked with an "X" in a box below am superseded: [] 1. Section I - Systems Equipment [] 2. Section II - "Media", "Data", "Computer Programs" [] 3. Section III -"Extra Expense" [] 4. Section IV- "Business Income" and the following is substituted: The Deductible amount is $ 1,000 for any one loss. This Deductible amount does not apply to the other coverages provided by this combination endorsement. DB. Breakdown Coverage Premium - The Premium for Breakdown insurance $ Included Limit of Insurance - The Limit of Insurance for this coverage is $ 329,750 Deductible - The Deductible amount for Breakdown coverage is $ See Section V r-lc. Earthquake Premium - The Premium for Earthquake coverage is $ included Limit of Insurance - 1. $0 Any One Earthquake 2. Annual Aggregate Deductible - The Deductible amount for Earthquake is $0 r-ID. Flood Premium - The Premium for Flood coverage is $ included Limit of Insurance - l. $0 Any One Flood 2. Annual Aggregate Deductible - The Deductible amount for Flood is $0 FORMS AND ENDORSEMENTS Forms and endorsements applying to this Coverage Part and made a part of this policy at time of issue: See AIMUIL0002 (3-2003) ['HIS SUPPLEMENTAL DECLARATIONS AND THE COMMON POLICY DECLARATIONS, TOGETHER WITH THE COMMON POLICY CONDITIONS, THE INLAND MARINE CONDITIONS, COVERAGE FORM(S) AND ENDORSEMENTS COMPLETE THE ABOVE NUMBERED POLICY. AIMUIM0003 (32003) Page 2 of 2 INLAND MARINE ARCH INSURANCE COMPANY ELECTRONIC DATA PROCESSING SYSTEMS SECTION I - EQUIPMENT Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy, the words "you", "your", and "yours' refer to the Named Insured shown in the Declarations. The words "we", "us", "our", and "ours" refer to the company providing this insurance. Other words and phrases that appear in quotation marks have a special meaning. Refer to paragraph K. DEFINITIONS. SECTION I - EQUIPMENT A. COVERAGE We will pay for "loss" to Covered Property from any of the Covered Causes of "Loss". 1. COVERED PROPERTY, as used in Section I, means: "Data processing equipment", including component parts of that equipment, which are: a. owned by you; b. leased or rented to you; or c. under your control; all as shown in the schedule attached to this policy. 2.PROPERTY NOT COVERED Covered Property does not include: a. ~data", "media" or "computer programs"; b. property you lease or rent to others while it is away from your premises; c. property while it is waterborne, unless on transporting vehicles aboard a regular ferry operating on inland waterways; or d. accounts, bills, evidences of debt, valuable papers, records, abstracts, deeds, manuscripts, or other documents. 3. COVERED CAUSES OF LOSS Covered causes of "loss" means Risks of Direct Physical "loss" to Covered Property except those causes of "loss" listed in the exclusions. EXTENSIONS OF COVERAGE These extensions of coverage shall not increase the Limits of Insurance. The Coinsurance clause applies to these extensions unless otherwise specifically stated. a. Removal If the Covered Property becomes in imminent danger of "loss" at a covered location we will pay for "loss" while the property covered is: (1) being removed; (2) while at a place of safety; and (3) while being returned from the places of safety; provided you give us written notice of removal and return within ten (10) days of removal. b. Debris Removal (1) we will pay for the cost of removal of debris of the Covered Property if caused by a Covered Cause of "Loss"; but (2) we will not pay more than your actual cost of debris removal, or 10% of the applicable Limit of Insurance, or $100,000, whichever is least; (3) in no event will we pay any cost resulting from enforcement of any law or ordinance. AIMUIM0004 3 2003 Page 1 of 5 ARCH INSURANCE COMPANY c. Additionally Acquired Property You agree: (1) To report in writing: additional property of the kind insured by this policy, acquired after the effective date of this policy; within thirty (30) days from the date acquired; and (2) to pay full premium for that property from the date acquired at pro rata of the policy rate for such property. We agree: (1) to cover such additional property when acquired, pending notice to US: (a) for no more than the actual cash value of the acquired property; or (b) for no more than 25% of the highest limit of insurance at any location shown in the Declarations, or $250,000, whichever is least; (2) to cease to cover this property if it is not reported to us in writing within the thidy (30) day period. This coverage applies only to a class of property covered by this policy at the time of acquisition. The coinsurance clause in this policy does not apply to this extension of coverage. d. New Location Coverage You agree: to report in writing property covered by this policy, which is transferred to a new location, within thirty (30) days from the date transferred. The new location must have been acquired by you after the effective date of this coverage. We agree: (1) to cover this property, pending written notice to us: (a) beginning with the date the property is physically transferred to your new location; and (b) until such location is scheduled on this coverage; (c) for no more than 25% of the highest Limit of Insurance at any location shown in the declarations, or $250,000, whichever is least; (2) to cease to cover this property if the new location is not reported to us in writing within the thirty (30) day period. This coverage applies only to property covered by this policy at time of transfer. Transfer Between Locations Coverage You agree: to report in wdting property covered by this policy, which is transferred between existing locations specified in this policy, within thirty (30) days from the date of transfer. We agree: (1) to cover this property, pending notice to us, for no more than 25% of the highest Limit of Insurance at any location shown in the declarations, or $250,000, whichever is least; (2) to cease to cover this property if the changes in location are not reported to us in writing within the thirty (30) day period. Fire Protection Devices We will pay the cost to recharge or refill: (1) any fire protection device which is designed specifically to protect Data Processing equipment; and (2) other fire protection devices in the same room where covered Data Processing equipment is located; when these devices have been discharged as a result of a fire or explosion. This coverage shall apply in addition to the coverage otherwise provided by this policy. We shall not pay more than $25,000 for the expenses to refill or recharge fire protection devices. AIMUIM0004 3 2003 Page 2 of 5 ARCHINSURANCE COMPANY The coinsurance clause in this policy does not apply to this extension of coverage. We will not cover any property after the end of the policy term, or after cancellation or termination of this coverage. EXCLUSIONS 1. We will not pay for a ~loss" caused directly or indirectly by any of the following. Such "loss" is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the "loss": a. GOVERNMENTAL ACTION Seizure or destruction of property by order of governmental authority. We will pay for acts of destruction ordered by the governmental authority and taken at the time of a fire to prevent its spread if the fire would be covered under this coverage form. b. NUCLEAR HAZARD (1) Any weapon employing atomic fission or fusion; or (2) Nuclear reaction or radiation, or radioactive contamination from any other cause. We will pay for direct "loss' caused by resulting fire if the fire would be covered under this coverage form. c. WARAND MILITARY ACTION (1) War, including undeclared or civil war; (2) Warlike action by a military force, including action taken in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hindering or defending against any of these. d. EARTH MOVEMENT Earthquake, volcanic eruption or effusion, earth sinking, earth rising or shifting, landslide or other earth movement. We will pay for direct "loss" caused by resulting fire if fire is otherwise covered by this policy. e. "FLOOD" We will pay for direct "loss" caused by resulting fire if fire is otherwise covered by this policy. 2. We will not pay for "loss" or damage caused by or resulting from any of the following: If another "loss" that we cover results we will pay for that resulting "loss". a. Acts or decisions, including the failure to act or decide, of any person, group, organization, or governmental body, and including enforcement of any ordinance or law regulating the construction, repair or demolition of building(s) or structure(s); b. Faulty, inadequate or defective: (1) planning, zoning, development; surveying or siting; (2) design, specification, workmanship, repair, construction, renovation, remodeling, grading, compaction; (3) materials used in repair, construction, renovation or remodeling; or (4) maintenance. c. Collapse of all or part of any building or structure. 3. We will not pay for a "loss" caused directly or indirectly by any of the following: a. collapse, subsidence, settling, cracking, shrinkage or expansion of walls, pavement, foundations, floors, roofs or ceilings; b. wear and tear, mold, rot; c. hidden or latent defect, or any quality in property that causes it to damage or destroy itself; d. insects, vermin, rodents; e. dryness or dampness of atmosphere, extremes of temperature, corrosion or rust, unless resulting from physical damage to the data processing system's air conditioning facilities by a cause of ~loss" not excluded by this policy; AIMUIM0004 3 2003 Page 3 of 5 ARCHINSURANCE COMPANY f. delay, loss of market, loss of use, interruption of business, consequential loss of any nature; g. any change in electric power supply (such as interruption, brown out, or power surge) if the change originates more than 100 feet away from the premises containing the property; h. actual work upon, installation or testing of property covered; or i. dishonest or criminal acts: (1) by you, or by any of your employees; (2) by anyone authorized to act for you; (3) by anyone to whom the property is entrusted; or (4) all whether alone or in collusion with others and during the hours of employment or not. This exclusion does not apply to a carrier for hire. This exclusion does not apply to intentional acts of destruction by your employees, but under no circumstances is theft by an employee covered. C. LIMITS OF INSURANCE Thb most we Will pay fOr a "loss' are the amounts stated in Section of the Declarations. D. DEDUCTIBLE We will not pay for "loss" ~n any one occurrence until the amount of "loss" exceeds the Deductible amount shown in Section I of the Declarations. We will then pay the amount of "loss" in excess of the Deductible up to the applicable Limit of Insurance. E. VALUATION 1. If Actual Cash Value is indicated in Section I.C. of the Declarations then clause F.1. below shall apply. 2. If Replacement Cost is indicated in Section I.C. of the Declarations then clause F.2. shall apply, and the amount we will pay shall not exceed the smallest of the following: a. the Limit of Insurance which applies to the property involved in the "loss"; b. the amount you actually spend to repair or replace the property, or any part of it. You may substitute property of a different kind or quality, but we won't pay more than what it would cost to replace the damaged or destroyed property with substantially identical property. We will not make any payment under this form until the property involved in the "loss" is actually repaired or replaced by you with due diligence or dispatch. F. COINSURANCE 1. The following shall apply if indicated in Section I.C.1. of the Declarations: All property that is covered by this policy must be covered for its total actual cash value at the time of "loss" or you will incur a penalty; The penalty is that we will pay only the proportion of any "loss" that the Limit of Insurance bears to the total actual cash value of the property at the time of 'loss"; 2. The following shall apply if indicated in Section I.C.2. of the Declarations: All property that is covered by this policy must be insured for its total Replacement Cost at the time of "loss" or you will incur a penalty; The penalty is that we will pay only the proportion of any "loss" that the Limit of Insurance bears to the total Replacement Cost of the property at the time of "loss". G. RENTED OR LEASED PROPERTY 1. You must provide us with a copy of any lease or rental agreement that applies to any property covered by this policy: We will cover only those Causes of "Loss" which the lessor has not assumed by the terms of lease or rental and which are not excluded by this policy. You agree to give us advance notice of any cancellation, alteration, or termination of any such lease or rental agreement. if you fail to notify us as agreed we shall be responsible for no broader coverage than what we would have been responsible under the last lease or rental agreement reported to us during the term of this coverage. If no lease or rental agreements have been reported to us we will not cover leased or rented property. AIMUIM0004 3 2003 Page 4 of 5 ARCH INSURANCE COMPANY H. RELEASE OF CARRIER'S LIABILITY 3. "Data You are permitted to accept released value bills ~ of lading from common carriers. I. REcoRDs AND INVENTORY You will keep accurate records of your business and retain them for three years after the policy ends. J. PROTECTIVE SAFEGUARDS You must maintain the protective safeguards stated by you to be in effect at a location when 4. this coverage began. If you fail to maintain the protective safeguards: 1. in working condition; and 2. in operation; coverage for which the protective safeguards apply is automatically suspended. This suspension will last until the equipment or services are back in operation. K. DEFINITIONS 1. "Computer programs" means "data" used to direct computer equipment including diagrams or other records which can be 5. used to reproduce programs. 6. 2. "Data" means facts, concepts or instructions, including computer programs, ( ' which are converted to a form usable in your data processing operations. processing equipment" means a network of machine components capable of accepting information, processing it according to plan, and producing a desirable result. This includes all of your hardware, including air conditioning equipment used exclusively in your data processing operation, but does not include software or the cost of reproducing software. "Flood" means a temporary condition of partial or complete inundation of normally dry land areas as a result of: a. the overflow of inland or tidal waters; or b. the unusual and rapid accumulation or runoff of surface waters. "Flood" does not mean: a. water which backs up through sewers or drains; b. water below the surface of the ground; or c. release of water impounded by a dam. "Loss" means accidental loss or damage. "Media" means materials on which "data" are recorded. AIMUIM0004 3 2003 Page 5 of 5 ARCH INSURANCE COMPANY ELECTRONIC DATA PROCESSING SYSTEMS SECTION V - EXTENSIONS OF COVERAGES If shown in Section V of the Data Processing Systems Declarations, coverage is extended as provided below. COMBINED DEDUCTIBLE The individual deductible amounts in any of the following coverages are deleted: Section I-- Data Processing Systems Equipment Section II- Media, Data, Computer Programs Section Ill -- Extra Expense Coverage Section IV-- Loss of Business Income Coverage And the following is substituted: We will not pay for "loss" in any one occurrence until the amount of ~loss" for all sections exceeds the Deductible Amount shown in Section V.A. of the Declarations. We will then pay the amount of "loss" in excess of the deductible, up to the applicable Limit of Insurance, BREAKDOWN COVERAGE If an X is placed in the appropriate box in Section V.B. of the Declarations we will pay for direct physical "loss" to covered property caused by: 1. mechanical failure, faulty construction or error in design of the equipment insured; 2. short circuit, blowout of other electrical disturbance, other than lightning, within electrical apparatus; 3. data processing media failure or breakdown or malfunction of the data processing system equipment and component parts when the media is being run through the system. Premium The premium for Breakdown Coverage is as stated in Section V.B. of the Declarations. Limits Of Insurance 1. The Limit of Insurance shown in Section V.B. of the Declarations is the most we will pay for a Breakdown "loss". 2. The following is added to the LIMITS OF INSURANCE provision contained in the applicable Coverage Form: Payments under the Breakdown Coverage Extension will not increase the applicable Limit of Insurance. Deductible We will not pay for "loss" in any one occurrence until the amount of "loss" exceeds the Deductible amount shown in Section V.B. of the Declarations. We will then pay the amount of "loss" in excess of the deductible, up to the Limit of Insurance for Breakdown coverage. EARTHQUAKE COVERAGE If an X is placed in the appropriate box in Section V.C. of the Declarations we will pay for direct physical "loss" to covered property caused by: 1. earthquake; 2. volcanic eruption, explosion or effusion; 3. earth sinking, earth rising or shifting; 4. landslide or other earth movement. When the word "earthquake" appears in this extension of coverage it shall include all of the above. This extension of coverage does not extend this policy to cover any other Cause of "Loss" which contributes concurrently or in any sequence to the "earthquake" "loss". Premium The premium for Earthquake Coverage is as stated in Section V.C. of the Declarations. Limits Of Insurance 1. The Limit of Insurance shown in Section V.C.I. of the Declarations as Any One Earthquake is the most we will pay for "loss" in any one "earthquake". 2. The Limit of Insurance shown in Section V.C.2. of the Declarations as Annual Aggregate is the most we will pay for all claims for "earthquake" "loss' which occur during the policy period. If the policy period shown in the Declarations is for a term of mom than one year, we will apply the Annual Aggregate Limit separately to each consecutive year of the policy period. 3. The following is added to the LIMITS OF INSURANCE provision contained in the applicable Coverage Form: Payments under the Earthquake Coverage Extension will not increase the applicable Limit of Insurance. AIMUIM0006 3 2003 Page 1 of 2 ARCH INSURANCE COMPANY Deductible We will not pay for an "Earthquake" "loss" in any one occurrence until the amount of "loss" exceeds the Deductible amount shown in Section V.C. of the Declarations. We will then pay the amount of the "loss" in excess of the deductible, up to the Limit of Insurance for "earthquake". FLOOD COVERAGE If an X is placed in the appropriate box in Section V.D. of the Declarations we will pay for direct physical "loss" to Covered Property caused by: 1. the overflow of inland orfldal waters; 2. the unusual and rapid accumulation or runoff of surface waters. "Flood" does not mean: 1, water which backs up through sewers or drains; 2. water below the surface of the ground; or 3. release of water impounded by a dam. This extension of coverage does not extend this policy to cover any other Cause of "Loss" which contributes concurrently or in any sequence to the "flood" "loss". Premium The premium for Flood Coverage is as stated in Section V.D. of the Declarations. Limits Of Insurance I. The Limit of Insurance shown in Section V.D.1. of the Declarations as Any One Flood is the most we will pay for "loss" in any one "flood~. 2. The Limit of Insurance shown in Section V.D.2. of the Declarations as Annual Aggregate is the most we will pay for all claims for "flood" "loss" which occur during the policy period. If the policy period shown in the Declarations is for a term of more than one year, we will apply the Annual Aggregate Limit separately to each consecutive year of the policy period. 3. The following is added to the LIMITS OF INSURANCE provision contained in the applicable Coverage Form: Payments under the Flood Coverage Extension will not increase the applicable Limit of Insurance. Deductible We will not pay for a "flood" "loss" in any one occurrence until the amount of "loss" exceeds the Deductible amount shown in Section V.D. of the Declarations. We will then pay the amount of the "loss" in excess of the deductible, up to the Limit of Insurance for "flood". AIMUIM0006 3 2003 Page 2 of 2 ARCH INSURANCE COMPANY ELECTRONIC DATA PROCESSING SYSTEMS SECTION II - DATA, MEDIA, PROGRAMS INLAND MARINE COVERAGE We will pay for "loss" to covered property from any of the covered causes of "loss." 1. COVERED PROPERTY, as used in Section II, means: a. "data," ~media," (including unused media) or "computer programs," as defined in paragraph F. DEFINITIONS, which is: (1) owned by you; (2) leased or rented to you; or (3) under your control; all as described in Section II of the Declarations. PROPERTY NOT COVERED Covered Properly does not include: a. Any "data" or "media" which cannot be replaced with others of like kind or quality. This does not apply to any items that are insured for a stated amount per article. b. Accounts, bills, evidences of debt, valuable papers, records, abstracts, deeds, manuscripts or other documents except as they may be converted to data processing media form, and then only in that form. c. Property while waterborne, unless on transporting vehicles aboard any regular ferry operating in inland waterways. 3. COVERED CAUSES OF LOSS Covered causes of "loss" means risks of direct physical "loss" to Covered Property except those causes of "loss" listed in the exclusions. EXTENSIONS OF COVERAGE These extensions of coverage shall not increase the Limit of Insurance. a. Removal If the Covered Property becomes in imminent danger of "loss" at a covered location we will pay for "loss" while the property covered is: (1) being removed; (2) while at a place of safety; and (3) while being returned from such place; provided you give us written notice within (10) days of removal and return. b. Debris Removal We will pay for the cost of removal of debds of the Covered Property as a result of "loss" caused by or resulting from a Covered Cause of "Loss." (1) We shall pay for no more than your actual cost of debds removal, or 10% of the applicable Limit of Insurance, or $100,000, whichever is least. (2) In no event will we pay any cost resulting from enforcement of any law or ordinance. c. Storage of Duplicate Data Elsewhere We will pay for your "loss" to duplicate or backup data which you store at a separate location. A separate location is defined as a building located at least 100 feet away from your primary location. We shall pay no more for "loss" to duplicate or backup data than 10% of the combined "data" and "media" limits at your primary location, or $100,000, whichever is least. d. New Location Coverage You agree: To report in writing property covered by this policy, which is transferred to a new location, within thirty (30) days from the date of transfer. The new location must have been acquired by you after the effective date of this policy. AIMUIM0012 3 2003 Page 1 of 4 ARCH INSURANCE COMPANY We agree: (1) To cover this transferred property, pending wdtten notice to us, for no more than 25% of the Limit of Insurance shown in the Declarations at the location from which the transfer is made, or $250,000, whichever is least. (2) To cease to cover this property if the new location is not reported to us in writing within the thirty (30) day period. This coverage applies only to property already covered by this policy at the time of transfer. Transfer between Existing Locations Coverage You agree: To report in writing property covered by this policy, which is transferred between existing locations specified in this policy, within thirty (30) days from the date of transfer. We agree: (1) To cover this property, pending notice to us, for no more than 25% of the Limit of Insurance shown in the Declarations for the location from which the transfer is made, or $250,000, whichever is least. (2) To cease to cover this property if the change in location is not reported to us in writing within the thirty (30) day period. This coverage applies only to property already covered by this policy at the time of transfer. EXCLUSIONS 1. We will not pay for a "loss" caused directly or indirectly by any of the following. Such "loss" is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the "loss": a. GOVERNMENTAL ACTION Seizure or destruction of property by order of governmental authority. We will pay for acts of destruction ordered by the governmental authority and taken at the time of a fire to prevent its spread if the fire would be covered under this coverage form. b. NUCLEAR HAZARD Any weapon employing atomic fission or fusion. Nuclear reaction or radiation, or radioactive contamination from any other cause. We will pay for direct "loss~ caused by resulting fire if the fire would be covered under this coverage form. c. WARAND MILITARYACTION War, including undeclared or civil war. Warfike action by a military force, including action taken in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents. Insurrection, rebellion, revolution, usurped power or action taken by a governmental authority in hindering or defending against any of these. d. EARTH MOVEMENT Earthquake, volcanic eruption or effusion, earth sinking, earth rising or shifting, landslide or other earth movement. We will pay for direct "loss" caused by resulting fire if fire is otherwise covered by this policy. e. ~FLOOD" We will pay for direct "loss" caused by resulting fire if fire is otherwise covered by this policy. 2. We will not pay for "loss" caused directly or indirectly by any of the following: a. collapse, subsidence, settling, cracking, shrinkage or expansion of walls, pavement, foundations, floors, roofs or ceilings; b. wear and tear, mold, rot; c. hidden or latent defect, or any quality in property that causes it to damage or destroy itself; AIMUIM0012 3 2003 Page 2 of 4 ARCH INSURANCE COMPANY b. Acts or decisions, including the failure to act or decide, if any person, group, organization, or governmental body. c. Faulty, inadequate or defective: (1) planning, zoning, development surveying or siting; (2) design, specification, workmanship, repair, construction, renovation, remodeling, grading, compaction; (3) materials used in repair, construction, renovation or remodeling; or (4) maintenance. d. Collapse of pad or all of any building or structure. C. LIMITS OF INSURANCE The most we will pay for a "loss" is the amount specified in Section II of the Declarations. D. DEDUCTIBLE We will not pay for "loss" in any one occurrence until the amount of "loss" exceeds the Deductible amount shown in Section II of the Declarations. We will then pay the amount of "loss" in excess of the Deductible, up to the applicable Limit of Insurance. E. VALUATION The property covered by this section shall be valued as follows: 1. "Data," "media," or "computer programs" for which there is no agreed value specified in the Declarations shall be valued at the actual cost of reproduction provided that the "data" or "computer programs" are replaced or reproduced. If the property is not replaced or reproduced we shall pay the blank value of "media" on which the "data" or ~computer program(s)~ were recorded. On "media," we shall pay the actual cost of repairing or replacing with material of the same kind and quality. 2. The amounts specified in Section 2.D. of the Declarations for each item of "data," "media" or ~computer programs" shall be the agreed value for the purposes of this insurance. d. insects, vermin, rodents; e. dryness or dampness of atmosphere, extremes of temperature, corrosion or rust, unless resulting from physical damage to the data processing system's air conditioning facilities by a cause of ~loss" not excluded by this policy; f. delay, loss of market, loss of use, interruption of business, consequential loss of any nature; g. any change in electric power supply (such as interruption, brown out, or power surge) if the change originates more than 100 feet away from the premises containing the property; h. data processing media failure or breakdown, malfunction of the data processing system; i. electrical or magnetic injury, disturbance or erasure of electronic recordings, except by lightning; dishonest or criminal acts: (1) by you, or by any of your employees; (2) by anyone authorized to act for you; or (3) by anyone to whom the property is entrusted; all whether alone or in collusion with others and whether dudng regular work hours or not. This exclusion does not apply to carriers for hire. This exclusion does not apply to acts of destruction by your employees. Theft by employees is not covered. k. error in machine programming or instructions to machine. We will not pay for a "loss" caused by or resulting from any of the following. If "loss" by a covered cause results, we will pay for that resulting "loss": a. Weather conditions. This exclusion only applies if weather conditions contribute in any way with a cause or event excluded in Paragraph B.I. above to produce the "loss." AIMUIM0012 3 2003 Page 3 of 4 ARCH INSURANCE COMPANY 3. Unused "media" shall be valued at the actual cost of repairing or replacing the property with material of the same kind or quality. F. DEFINITIONS 1. "Computer programs~ means "data" used to direct computer equipment including diagrams or other records which can be used to reproduce programs. 2. "Data" means facts, concepts or instructions, including computer programs, which are converted to a form usable in your data processing operations. 3. "Flood" means a temporary condition of partial or complete inundation of normally dry land areas as a result of: a. the overflow of inland or tidal waters; or b. the unusual and rapid accumulation or runoff of surface waters. "Flood" does not mean a. water which backs up through sewers or drains; b. water below the surface of the ground; or c. release of water impounded by a dam. 4. "Loss" means accidental loss or damage. 5. "Media" means materials on which "data" are recorded. AIMUIM0012 3 2003 Page 4 of 4 ARCH INSURANCE COMPANY ELECTRONIC DATA PROCESSING SYSTEMS SECTION III-- EXTRA EXPENSE iNLAND MARINE A. COVERAGE 1. We will pay the necessary "extra expense" you incur in order to continue as nearly as practicable the "normal" operation of your business following damage to the property covered under Sections I and II of this policy. 2. We also insure under this section the actual "loss" sustained by you during the "pedod of restoration," when, as a direct result of a Covered Cause of "Loss": a. the premises in which the property is located is so damaged as to prevent access to it; or b. the air conditioning system or electrical system necessary for the operation of your data processing equipment is so damaged as to reduce or suspend your ability to per[cfm the operations normally performed by the data processing equipment. c. access to your premises where the insured property is located is specifically prohibited ~ by order of civil authority. This coverage shall not exceed two consecutive weeks. B. EXCLUSIONS We will not pay for any "extra expense" unless "loss" was caused by or resulted from a Covered Cause of "Loss" under Section I or Section II of this policy. We will not pay for any "loss" unless it occurs during the policy term. C. MEASURE OF RECOVERY 1. We shall pay up to the amount specified in the Declarations for the necessary "extra expense" that is incurred for the "period of restoration." The "pedod of restoration" starts with the date of "loss" and is not limited by the expiration of this policy. 2. The most we will pay for a "loss" is the amount stated in the Declarations. D. RESUMPTION OF OPERATIONS You must resume "normal" operations of your business as soon as practicable after "loss." Coverage under this section shall then cease. E. DEDUCTIBLE We will not pay for "loss" in any one occurrence until the amount of "Loss" exceeds the Deductible amount shown in Section III of the Declarations. We will then pay the amount of "loss" in excess of the Deductible, up to any applicable Limit of Insurance. F. DEFINITIONS 1. "Loss" means accidental loss or damage. 2. "Extra expense" means the excess (if any) of the total cost incurred during the "period of restoration" chargeable to the operations of your business over and above the total cost that would normally have been incurred to conduct the business during the same period had no damage occurred. The cost in each case includes the expense of using other property or facilities of other concerns or other necessary emergency expenses. In no event shall we pay for loss of profits or earnings resulting from a reduced volume of business. In no event shall we pay for direct or indirect "loss" to property covered under Sections I or II. We shall not pay for the purchase, construction, repair or replacement of any physical property unless incurred for the purpose of reducing a covered "loss' under this Section III, and then any payment shall not exceed the amount by which the "loss" is reduced. Any salvage value of property obtained for temporary use during the ~period of restoration" which remains after the resumption of normal operations shall be taken into consideration in the adjustment of any "loss' hereunder. 3. "Normal" means the condition that would have existed had no "loss" occurred. 4. "Period of restoration" means the length of time: a. starting with the date of "loss"; and b. not limited by the date of expiration of this coverage; required with due diligence and dispatch to repair, rebuild or replace the part of the property covered by this policy that has been damaged or destroyed. AIMUIM0013 3 2003 IL 09 61 11 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXCLUSION OF CERTIFIED ACTS AND OTHER ACTS OF TERRORISM This endorsement modifies insurance provided under the following: BOILER AND MACHINERY COVERAGE PART COMMERCIAL CRIME COVERAGE FORM COMMERCIAL CRIME POLICY COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART EMPLOYEE THEFT AND FORGERY POLICY FARM COVERAGE PART GOVERNMENT CRIME COVERAGE FORM GOVERNMENT CRIME POLICY KIDNAP/RANSOM AND EXTORTION COVERAGE FORM KIDNAP/RANSOM AND EXTORTION POLICY STANDARD PROPERTY POLICY A. The following definitions are added with respect to the provisions of this endorsement: 1. "Certified act of terrorism" means an act that is certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism pursuant to the federal Terrorism Risk Insurance Act of 2002. The cd- reda contained in that Act for a "certified act of terrorism" include the following: a. The act resulted in aggregate losses in excess of $5 million; and b. The act is a violent act or an act that is dangerous to human life, property or infra- structure and is committed by an individual or individuals acting on behalf of any for- eign person or foreign interest, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. 2. "Other act of terrorism" means a violent act or an act that is dangerous to human life, prop- erty or infrastructure that is committed by an individual or individuals and that appears to be part of an effort to coerce a civilian population or to influence the policy or affect the conduct of any government by coercion, and the act is not certified as a terrorist act pursuant to the federal Terrorism Risk Insurance Act of 2002. The following exclusion is added: EXCLUSION OF CERTIFIED ACTS AND OTHER ACTS OF TERRORISM We will not pay for loss or damage caused directly or indirectly by a "certified act of terrorism" or an "other act of terrorism". Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. But with respect to an "other act of terrorism", this exclusion applies only when one or more of the following are attributed to such act: 1. The terrorism is carded out by means of the dispersal or application of pathogenic or poi- sonous biological or chemical materials; or 2. Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the termdsm was to release such materials; or IL 09 61 11 02 © ISO Properties, Inc., 2002 Page 1 of 2 [] 3, The total of insured damage to all types of property in the United States, its territories and possessions, Puerto Rico and Canada exceeds $25,000,000. In determining whether the $25,000,000 threshold is exceeded, we will in- clude all insured damage sustained by prop- erty of all persons and entities affected by the terrorism and business interruption losses sus- rained by owners or occupants of the damaged property. For the purpose of this provision, in- sured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the applica- tion of any terrorism exclusions. Multiple inci- dents of "other acts of terrorism" which occur within a 72-hour period and appear to be car- ried out in concert or to have a related purpose or common leadership will be deemed to be one incident. With respect to this Item B.3., the immediately preceding paragraph describes the threshold used to measure the magnitude of an "other act of ter- rorism'' and the circumstances in which the threshold will apply, for the purpose of determin- ing whether this exclusion will apply to that inci- dent. When the exclusion applies to an "other act of terrorism", there is no coverage under this Coverage Part or Policy. Application Of Other Exclusions The terms and limitations of any terrorism exclu- sion, or the inapplicability or omission of a terror- ism exclusion, do not serve to create coverage for any loss which would otherwise be excluded under this Coverage Part or Policy, such as losses ex- cluded by the Nuclear Hazard Exclusion or the War And Military Action Exclusion. Page 2 of 2 © ISO Properties, Inc., 2002 iL 09 61 11 02 [] UMBRELLA ARCH INSURANCE COMPANY COMMERCIAL UMBRELLA COVERAGE FORM SUPPLEMENTAL DECLARATIONS These Supplemental Declarations form a part of policy number DATE ISSUED: ITEM 1, NAME INSURED & ADDRESS CITY OF JEFFERSONVILLE 501 EAST COURT AVE. JEFFERSONVILLE IN 47130 KMPKG00071 ITEM 2. POLICY PERIOD: POLICY COVERS FROM 05/14/2003 TO 08/06/2003 12:01 A.M. STANDARD TIME AT THE NAMED INSURED'S ADDRESS STATED ABOVE. ITEM 3. LIMITS OF INSURANCE-AS IN INSURING AGREEMENT III (THE LIMITS OF INSURANCE ARE THE AMOUNTS SHOWN BELOW) (a) EACH OCCURRENCE LIMIT: $4,000,000 (b) GENERAL AGGREGATE LIMIT (OTHER THAN PRODUCTS/COMPLETED OPERATIONS): $4,000,000 (c) PRODUCTS/COMPLETE OPERATIONS AGGREGATE LIMIT: $ INCLUDED (d) EMPLOYERS LIABILITY AGGREGATE LIMIT-DISEASE: $ (e) AGGREGATE LIMIT WHERE APPLICABLE: $4,000,000 ITEM 4. SELF-INSURED RETENTION: $10,000 ITEM 5. FORMS AND ENDORSEMENTS ATTACHED TO THIS COVERAGE FORM AND MADE A PART OF THIS POLICY AT TIME OF ISSUE: Referto: AIMUIL0002 (3 2003) ITEM 6. PREMIUM IS PAYABLE: IN ADVANCE: PER FLAT CHARGE ADJUSTABLE AT A RATE OF: ANNUAL EXPOSURE IS ESTIMATED AT: ANNUAL MINIMUM PREMIUM: $1NCLUDED $1NCLUDED $ N~ $ N~ $ INCLUDED THIS SUPPLEMENTAL DECLATATIONS AND THE COMMON POLICY DECLARATIONS, TOGETHER WITH THE COVERAGE FORM(S) AND ENDORSEMENTS COMPLETE THE ABOVE NUMBERED POLICY. THE COMMON POLICY CONDITIONS DO NOT APPLY TO THIS COVERAGE PART. AIMUUM0018 (3 2003) ARCH INSURANCE COMPANY POLICY NO: KMPKG0007~ ReplacementNo. SCHEDULE A SCHEDULE OFUNDERLYINGINSURANCE NAMEDINSURED:ClTYOFJEFFERSONVILLE COVERAGE INSURER POLICYPERIOD POLICY NUMBER APPLICABLE LIMITS BUSINESS AUTOMOBILE LIABILITY INCLUDING HIRED & NON-OWNED ARCH INSURANCE COMPANY 05/14/2003 TO 08/06/2003 POLICY# KMPKG00071 COMBINED SINGLE LIMIT LIABILITY $1,000,000 EACH ACCIDENT SPLIT LIMITLIABILITY $ BI-EACHPERSON $ BI-EACHACCIDENT $ PD-EACH ACCIDENT COMMERCIAL GENERAL ARCH INSURANCE COMPANY LIABILITY 05/14/2003 TO 08/06~003 COVERAGE A & BPOLICY# KMPKG00071 $1,000,000 $3,000,00O $ INCLUDED $ INCLUDED [] GENERAL AGGREGATE APPLIES PER LOCATION EACH OCCURRENCE GENERAL AGGREGATE ( OTHER THAN PRODUCTS/COMPLETED OPERATIONS ) PRODUCTS/COMPLETED OPERATIONS AGGREGATE PERSONAL & ADVERTISING ~NJURY COVERAGE b $ EMPLOYERS N/A $ LIABILITY $ BI BY ACCIDENT - EACH ACCIDENT POLICY LIMIT - BI BY DISEASE EACH EMPLOYEE - BI BY DISEASE PUBLIC OFFICIALS LIABILITY ARCH INSURANCE COMPANY 05/14/2003 TO 08/06/2003 POLICY# KMPKG00071 $1,000,000 $1,000,000 ANNUAL AGGREGATE LIMIT EACH CLAIM LIMIT EDUCATORS $ LEGAL LIABILITY N/A $ ANNUAL AGGREGATE LIMIT EACH CLAIM LIMIT LAW ENFORCEMENT LIABILITY ARCH INSURANCE COMPANY 05/14/2003 TO 08/06/2003 POLICY # KMPKG00071 $1,000,000 $1,000,000 ANNUAL AGGREGATE LIMIT EACH WRONGFUL ACT EIMIT * The above Schedule applies to any renewals or replacements thereof AIMUUM0086 (3-2003) ARCH INSURANCE COMPANY COMMERCIAL UMBRELLA COVERAGE FORM Vadous provisions in this policy restdct coverage. Read the entire policy carefully to determine dghts, duties and what is and is not covered. Throughout this policy, the words "you" and "your" refer to the Named Insured as defined in Insudng Agreement IV, Definitions. The words %ye," "us" and "our" refer to the Company providing this insurance. The word Insured means any person or organization qualifying as such in Insudng Agreement IV, Definitions. Other words and phrases that appear in bold-faced type have special meaning. Refer to Insuring Agreement IV, Defini- tions. In consideration of the payment of the premium and in reliance upon the statements in the Declarations we agree with you to provide coverage as follows: INSURING AGREEMENTS I. Coverage We will pay on behalf of the Insured those sums in excess of the Retained Limit that the Insured becomes legally obligated to pay as damages by reason of liability imposed by law or assumed by the Insured under an Insured Contract because of Bodily Injury, Property Damage or Personal and Advertising Injury covered by the terms of this policy, that takes place dudng the Policy Pe- riod and is caused by an Occurrence anywhere in the woHd. The amount we will pay for damages is limited as described in Insuring Agreement III, Limits of Insurance. If we are prevented by law or statute from paying on behalf of the Insured, then we will, where permitted by law or statute, indemnify the In- sured for those sums covered by the terms of this policy that the Insured is obligated to pay as damages in excess of the Retained Limit. II. Defense A. We shall have the dght and duty to defend any claim or Suit seeking damages covered by the terms and conditions of this policy when: '1. The applicable Limits of Insurance of the underlying policies listed in the Schedule of Underlying Insurance and the Limits of Insurance of any other insurance provid- ing coverage' to the Insured have been exhausted by payment of claims for Oc- currences that take place during the Pol- icy Period; or 2. Damages are sought for Bodily Injury, Property Damage or Personal and Ad- vertising Injury covered by this policy but not covered by any underlying insur- ance listed in the Schedule of Underlying Insurance or any other insurance provid- ing coverage to the Insured. B. When we assume the defense of any claim or Suit: '1. We will defend any Suit against the In- sured seeking damages on account of Bodily Injury, Property Damage or Per- sonal and Advertising Injury even if such Suit is groundless, false or fraudu- lent, but we have the right to investigate, defend and settle any claim or Suit as we deem expedient. We will have the right to pay any amounts within the Self-insured Retention shown in Item 4. in the Decla- rations to settle any claim or Suit. 2. We will pay the following, to the extent that they are not included in the underly- ing policies listed in the Schedule of Un- dedying Insurance or in any other insur- ance providing coverage to the Insured: a. Premiums on bonds to release at- tachments for amounts not exceeding our Limits of Insurance, but we are not obligated to apply for or furnish any such bond. b. Premiums on appeal bonds required by law to appeal any claim or Suit we defend, but we are not obligated to apply for or furnish any such bond. c. All costs taxed against the Insured in any claim or Suit we defend. d. Pre-judgment interest awarded against the Insured on that part of the judgment we pay. If we make an offer to pay the applicable Limit of In- surance, we will not pay any pre- judgment interest based on that pe- riod of time after the offer. e. All interest that accrues after entry of judgment and before we have paid, offered to pay or deposited in court the part of the judgment that is within our applicable Limit of Insurance. AIMUUM0017 3 2003 Page 1 of 13 ARCH INSURANCE COMPANY f. The Insured's expenses incurred at our request. We will not defend any Suit or claim after our applicable Limits of Insurance have been exhausted by payment of judgments or sefflements. All expenses we incur in the defense of any Suit or claim are in addition to our Limits of Insurance. C. Except as provided in Insuring Agreement II.A., Defense, we will not be obligated to as- sume charge of the investigation, settlement or defense of any claim made, Suit brought or proceeding instituted against the Insured. We will, however, have the right and shall be given the opportunity to participate in the de- fense and trial of any claims, Suits or pro- ceedings relative to any Occurrence which, in our opinion, may create liability on our part under the terms of this policy. If we exercise such right, we will do so at our own expense. II1. Limits of Insurance A. The Limits of Insurance shown in Item 3. in the Declarations and the rules below state the most we will pay regardless of the number of: 1. Insureds; 2. Claims made or Suits brought; ~" 3. Persons or organizations making claims or bringing Suits; 4. Coverages provided underthis policy. B. If there is a limit stated in Item 3 (b) of the Declarations for the General Aggregate Limit (Other than Products/Completed Operations), that amount is the most that we will pay for all damages under Insuring Agreement I, Coverage except for: '1. Injury and damage included in the Prod- ucts/Completed Operations Hazard and 2. Coverages included in the Schedule of Underlying Insurance to which no underly- ing aggregate limit applies. If the General Aggregate Limit as stated in the Schedule of Underlying Insurance is amended to apply per location, the General Aggregate limit as stated in item 3 (b) of the Declarations shall also be so amended. C. If there is a limit stated in Item 3 (c) of the Declarations for the Products/Completed Op- erations Aggregate Limit, that amount is the most we will pay under Insuring Agreement I, Coverage for damage because of injury and damage included in the Prod- ucts/Completed Operations Hazard. D. If there is a limit stated in Item 3 (d) of the Declarations for Employers Liability Aggre- gate Limit---Disease, that amount is the most we will pay for all damages covered by this insurance arising out of Bodily Injury by dis- ease, regardless of the number of Employ- ees who sustain Bodily Injury by disease. E. If there is a limit stated in Item 3 (e) of the Declarations for Aggregate Limit Where Ap- plicable, that amount is the most we will pay for all damages under Insuring Agreement I Coverage, other than the aggregate limits shown under B, C and D above. Such aggre- gate limit will apply separately to each cover- age for which an aggregate limit applies in the Schedule of Underlying Insurance. Subject to paragraphs B, C, D and E above, the Each Occurrence Limit stated in Item 3 (a) of the Declarations is the most we will pay for damages for Bodily Injury, Property Damage and Per- sonal and Advertising Injury arising out of any one Occ,,rrence. If the applicable limits of insurance in the Sched- ule of Underlying Insurance or of other insurance are reduced or exhausted by payment of losses covered hereunder, the Limits of Insurance of this policy will apply in excess of such reduced or ex- hausted limits. The Limits of Insurance of this policy apply sepa- rately to each consecutive annual period and to any remaining period of less than 12 months starting with the beginning of the policy period un- less the policy period is extended after issuance of this policy for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding policy pe- riod for purposes of determining the Limits of In- surance. Retained Limit We will be liable only for that portion of damages in excess of the Insured's Retained Limit which is defined as the greater of either: '1. The total of the applicable limits of the under- lying policies listed in the Schedule of Under- lying Insurance and the applicable limits of any other insurance providing coverage to the Insured; or 2. The amount stated in the Declarations as Self-Insured Retention as a result of any one Occurrence not covered by the underlying AIMUUMO017 3 2003 Page 2 of 13 ARCH INSURANCE COMPANY policies listed in the Schedule of Underlying Insurance nor by any other insurance provid- ing coverage to the Insured; and then up to an amount not exceeding the Each Occurrence Limit as stated in the Decla- rations. IV. Definitions A. Auto means a land motor vehicle, trailer or semitrailer designed for travel on public roads, including any attached machinery or equipment. But Auto does not include Mobile Equipment. B. Bodily Injury means Bodily Injury, sickness, disability or disease. Bodily Injury shall also mean mental injury, mental anguish, humilia- tion, shock or death if directly resulting from Bodily Injury, sickness, disability or disease. C. Employee includes a Leased Worker. Em- ployee does not include a Temporary Worker. D. Hostile Fire means one, which becomes un- controllable or breaks out from where it is in- tended to be. E. Impaired Property means tangible property, other than Your Product or Your Work, that cannot be used or is less useful because: l. It incorporates Your Product or Your Work that is known or thought to be de- fective, deficient, inadequate or danger- ous; or 2. You have failed to fulfill the terms of a contract or agreement; if such property can be restored to use by: 1. The repair, replacement, adjustment or removal of Your Product or Your Work; or 2. Your fulfilling the terms of the contract or agreement. F. Insured means each of the following, to the extent set forth: 1. The Named Insured meaning: a. Any person or organization listed in Item 1. in the Declarations, and any company that is your subsidiary as of the effective date of this policy and any company you own or control as of the effective date of this policy. b. Any organization newly acquired, controlled or formed by you during the policy period but only: (1) As respects Occurrences taking place after you acquire, take con- trel or form such organization; (2) If such organization is included under the coverage provided by the policies listed in the Schedule of Underlying Insurance; and (3) If you give us notice within 90 days after you acquire, take con- trol of or form such organization. We may make an additional premium charge for any additional organiza- tions you acquire, form or take control of during the period of this policy. 2. If you are an individual, you and your spouse, but only with respect to the con- duct of a business of which you are the sole owner. 3. If you are a partnership or joint venture, the partners or members and their spouses, but only as respects the conduct of your business. No person or organization is an Insured with respect to the conduct of any current or past partnership or joint venture that is not shown as a Named Insured in the Declarations. 4. Any person or organization, other than the Named Insured, included as an addi- tional Insured in the policies listed in the Schedule of Underlying Insurance but not for broader coverage than is available to such person or organization under such underlying policies. 5. Any of your partners, executive officers, directors, stockholders or Employees but only while acting within the scope of their duties as such. However, the coverage granted by this provision 5. does not apply to the owner- ship, maintenance, use, loading or un- loading of any Autos, aircraft or water- craft unless such coverage is included under the policies listed in the Schedule of Underlying Insurance and then for no broader coverage than is provided under such underlying policies. 6. Any person, other than one of your Em- ployees, or organization while acting as your real estate manager. AIMUUM0017 3 2003 Page 3 of 13 ARCHINSURANCE COMPANY 7. Any person, organization, trustee or es- tate to whom you are obligated by a writ- ten Insured Contract to provide insur- ance such as is afforded by this policy but only with respect to: a. Liability adsing out of operations con- ducted by you or on your behalf; or b. Facilities owned or used by you. 8. Any person (other than your partners, ex- ecutive officers, directors, stockholders or Employees) or organization with respect to any Auto owned by you, loaned to you or hired by you or on your behalf and used with your permission. However, the coverage granted by this provision 8., does not apply to any person using an Auto while working in a business that sells, services, repairs or parks Autos unless you are in that business. Insured Contract means any oral or written contract or agreement entered into by you and pertaining to your business under which you assume the tort liability of another party to pay for Bodily Injury, Property Damage, or Personal and Advertising Injury to a third person or organization. Tort liability means a liability that would be imposed by law in the absence of any contract or agree- ment. Leased Worker means a person leased to you by a labor-leasing firm under an agreement be- tween you and the labor-leasing firm to perform duties related to the conduct of your business. Leased Worker does not include a Temporary Worker. Mobile Equipment means any of the follow- ing types of land vehicles, including any at- tached machinery or equipment: t. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; 2. Vehicles maintained for use solely on or next to premises you own or rant. How- ever, any land motor vehicle, trailer or semi-trailer designed for travel on public roads (including any machinery or appa- ratus that is attached) owned or leased by you shall be deemed an Auto and not Mobile Equipment if the only reason for considering it Mobile Equipment is that it is maintained for use exclusively on streets or highways owned by you. 3. Vehicles that travel on crawler treads; 4. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted: a. Power cranes, shovels, loaders, dig- gers or drills; or b. Road construction or resurfacing equipment such as graders, scrapers or rollers; 5. Vehicles not described in 1., 2, 3., or 4. above that ara not self-propelled and ara maintained primarily to provide mobility to permanently attached equipment of the following types: a. Air comprassors, pumps and genera- tors, including spraying, welding, building cleaning, geophysical explo- ration, lighting and well servicing equipment; or b. Cherry pickers and similar devices used to raise or lower workers; 6. Vehicles not described in 1., 2, 3., or 4. above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not Mobile Equipment but will be considered Autos: a. Equipment designed primarily for: ('1) Snow removal; (2) Road maintenance, but not con- struction or resurfacing; or (3) Street cleaning; b. Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and c. Air compressors, pumps and genera- tors, including spraying, welding, building cleaning, geophysical explo- ration, lighting and well servicing equipment. Occurrence means: 1. As respects Bodily Injury or Property Damage, an accident, including continu- ous or repeated exposure to substantially the same general conditions, which ra- suits in Bodily Injury or Property Dam- age neither expected nor intended from the standpoint of the Insured. All such AIMUUM0017 3 2003 Page 4 of 13 ARCH INSURANCE COMPANY exposure to substantially the same gen- eral conditions shall be considered as arising out of one Occurrence. 2. As respects Personal and Advertising Injury: a. An offense arising out of your busi- ness that results in Personal and Advertising Injury, or b. An offense committed in the course of advertising your goods, products and services that results in Personal and Advertising Injury. All damages that arise from the same or related injurious material or act shall be considered as arising out of one Occur- fence, regardless of the frequency or repetition thereof, the number and kind of media used and the number of claimants. K. Personal and Advertising Injury means injury, including consequential Bodily Injury, arising out of one or more of the following of- fenses: 1. False arrest, detention or imprisonment; 2. Malicious prosecution; 3. The wrongful eviction from, wrongful en- try into, or invasion of the right of private occupancy of a room, dwelling or prem- ises that a pemon occupies by or on be- half of its owner, landlord or lessor; 4. False or improper service of process; 5. Discrimination; 6. Oral or written publication of matedal that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; 7. Oral or written publication of material that violates a person's right of privacy; 8. The use of another's advertising idea in your advertisement; 9. infringement of copyright, title or slogan. L. Pollutants means any solid, liquid, gaseous or thermal irdtant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes mate- rials to be recycled, reconditioned or re- claimed. M. 1. Products-Completed Operations Haz- ard includes all Bodily Injury and Prop- erty Damage occurring away from prem- ises you own or rent and arising out of Your Product or Your Work except: a. Products that are still in your physical possession; or b. Work that has not yet been com- pleted or abandoned. 2. Your Work will be deemed completed at the earliest of the following times: a. When all of the work called for in your contract has been completed. b. When all of the work to be done at the site has been completed if your contract calls for work at more than one site. c. When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or sub- contractor working on the same proj- ect. Work that may need service, mainte- nance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. 3. This hazard does not include Bodily In- jury or Property Damage arising out of: a. The transportation of property, unless the injury or damage arises out of a condition in or on a vehicle created by the loading or unloading of it; b. The existence of tools, uninstalled equipment or abandoned or unused materials. N. Property Damage means: 1. Physical injury to tangible property, in- cluding all resulting loss of use of that pmperty. All such loss of use shall be deemed to occur at the time of the physi- cal injury that caused it; or 2. Loss of use of tangible property that is not physically injured. All such loss shall be deemed to occur at the time of the Oc- currence that caused it. O. Suit means a civil proceeding in which dam- ages because of Bodily Injury, Property Damage, Personal and Advertising Injury to which this insurance applies sre alleged. Suit includes: 1. An arbitration proceeding in which such damages am claimed and to which you must submit or do submit with our con- sent; or AIMUUM0017 3 2003 Page .5 of 13 ARCHINSURANCE COMPANY 2. Any other alternative dispute resolution proceeding in which such damages are claimed and to which you submit with our consent. P. Temporary Worker means a person who is furnished to you to substitute for a permanent Employee on leave or to meet seasonal or short-term workload conditions. Q. Your Product means: 1. Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by: a. You; b. Others trading under your name; or c. A person or organization whose busi- ness or assets you have acquired; and 2. Containers (other than vehicles), materi- als, parts or equipment furnished in con- nection with such goods or products. Your Product includes: 1. Warranties or representations made at any time with respect to the fitness, qual- ity, durability, performance or use of Your Product; and 2. The providing of or failure to provide warnings or instructions. Your Product does not include vending ma- chines or other property rented to or located for the use of others but not sold. R. YourWork means: '1. Work or operations performed by you or on your behalf; and 2. Materials, parts or equipment furnished in connection with such work or operations. Your Work includes: '1. Warranties or representations made at any time with respect to the fitness, qual- ity, durability, performance or use of Your Work; and 2. The providing of or failure to provide warnings or instructions. V. Exclusions This insurance does not apply to: A. Any obligation of the Insured under a Work- ers Compensation, Unemployment Compen- sation or Disability Benefits Law, or under any similar law. B. Any obligation of the Insured under the Em- ployees' Retirement Income Security Act of 1974 or any amendments to that act. C. Any obligation of the Insured under a No Fault, Uninsured Motorist, Underinsured Mo- torist, Personal Injury Protection, first party benefits or similar laws. D. Property Damageto: l. Property you own, rent, occupy or use; 2. Personal property in the care, custody or control of the Insured. E. Property Damage to Impaired Property or property that has not been physically injured, adsing out of: 1. A defect, deficiency, inadequacy or dan- gerous condition in Your Product or Your Work; or 2. A delay or failure by you or anyone acting on your behalf to perform a contract or agreement in accordance with its terms. This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to Your Prod- uct or Your Work after it has been put to its intended use. F. Property Damage to Your Product arising out of it or any part of it. G. Property Damage to Your Work arising out of it or any part of it and included in the Products-Completed Operations Hazard. This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor. H. Damages claimed for any loss, cost or ex- pense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, re- placement, adjustment, removal or disposal of: '1. Your Product; 2. Your Work; or 3. Impaired Property If such product, work or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, in- adequacy or dangerous condition in it. AIMUUM0017 3 2003 Page 6 of 13 ARCH INSURANCE COMPANY I. Liability of any Employee with respect to Bodily Injury or Personal and Advertising Injury to another Employee of the same em- ployer injured in the course of such employ- ment. However, if insurance for such liability is pro- vided by a policy listed in the Schedule of Underlying insurance: 1. This exclusion shall not apply; and 2. The insurance provided by our policy will not be broader than the insurance cover- age provided to the Employee by the pol- icy listed in the Schedule of Underlying Insurance. J. Bodily Injury or Property Damage arising out of the ownership, maintenance, operation, use, loading or unloading of any watercraft or any aircraft owned by the Insured or rented to the Insured without a crew. However, if insurance for such Bodily Injury or Property Damage is provided by a policy listed in the Schedule of Underlying Insur- ance: '1. This exclusion shall not apply; and 2. The insurance provided by our policy will not be broader than the insurance cover- age provided by the policy listed in the Schedule of Underlying Insurance. K. Personal and Advertising Injury: '1. Arising out of oral orwritten publication of material, if done by or at the direction of the Insured with knowledge of its falsity; Arising out of oral orwdtten publication of material whose first publication took place before the beginning of the policy period; 3. Arising out of the willful violation of a pe- nal statute or ordinance committed by or with the consent of the Insured; or For which the Insured has assumed li- ability in a contract or agreement. This exclusion does not apply to liability for damages that the Insured would have in the absence of the contract or agreement. $. Breach of contract, other than misappro- priation of advertising ideas under an im- plied contract. 6. The failure of goods, products or services to conform with advertised quality or per- formance; 7. The wrong description of the price of goods, products or services; or An offense committed by an Insured whose business is advertising, broadcast- ing, publishing or telecasting. Bodily Injury or Property Damage aris- lng out of the actual, alleged or threat- ened discharge, dispersal, seepage, mi- gration, release or escape of Pollutants: a. At or from any premises, site or ioca- tion, which is or was at any time owned or occupied by, or rented or loaned to, any Insured. However, this subparagraph does not apply to: (t) Bodily Injury if sustained within a building and caused by smoke, fumes, vapor or soot from equipment used to heat that building; or (2) Bodily Injury or Property Dam- age arising out of heat, smoke or fumes from a Hostile Fire; b. At or from any premises, site or loca- tion which is or was at any time used by or for any Insured or others for the handling, storage, disposal, proc- essing or treatment of waste; c. Which are or were at any time trans- ported, handled, stored, treated, dis- posed of, or processed as waste by or for any Insured or any person or or- ganization for whom you may be le- gally responsible; or d. At or from any premises, site or loca- tion on which any Insured or any contractors or subcontractors working directly or indirectly on any Insured's behalf are performing operations if the Pollutants are brought on or to the premises, site or location in con- nection with such operations by such Insured, contractor or subcontractor. However, this subparagraph does not apply to: (1) Bodily Injury or Property Dam- age arising out of the escape of fuels, lubricants or other operat- ing fluids which are needed to perform the normal electrical, hy- draulic or mechanical functions necessary for the operation of Mobile Equipment or its parts, if such fuels, lubricants or other op- erating fluids escape from a vehi- cle part designed to hold, store or receive them. This exception AIMUUM0017 3 2003 Page 7 of 13 ARCH INSURANCE COMPANY does not apply if the Bodily In- jury or Property Damage arises out of the intentional discharge, dispersal or release of the fuels, lubricants or other operating flu- ids, or if such fuels, lubricants or other operating fluids are brought on or to the premises, site or lo- cation with the intent that they be discharged, dispersed or released as part of the operations being performed by such Insured, con- tractor or subcontractor; (2) Bodily Injury or Property Dam- age sustained within a building and caused by the release of gases, fumes or vapors from ma- terials brought into that building in connection with operations being performed by you or on your be- half by a contractor or subcon- tractor; or (3) Bodily Injury or Property Dam- age arising out of heat, smoke or fumes from a Hostile Fire. e. At or from any promises, site or loca- tion on which any Insured or any contractors or subcontractors working directly or indirectly on any Insured's behalf are per[orming operations if the operations are to test for, monitor, clean up, remove, contain, treat, de- toxify or neutralize, or in any way re- spond to, or assess the effects of, Pollutants. Personal and Advertising Injury arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of Pollutants at any time. Any loss, cost or expense arising out of any: a. Request, demand, order or statutory or regulatory requirement that any In- sured or others test for, monitor, clean up, remove, contain, treat, de- toxify or neutralize, or in any way re- spond to, or assess the effects of, Pollutants; or b. Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assess- ing the effects of, Pollutants. However, this paragraph does not apply to liability for damages because of Prop- erty Damage that the Insured would have in the absence of such request, de- mand, order or statutory or regulatory re- quirement, or such claim or Suit by or on behalf of a governmental authority. M. Bodily Injury or Property Damage due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. This exclusion applies only to liability assumed under a contract or agreement. N. Bodily Injury or Property Damage expected or intended from the standpoint of the In- sured. However, this exclusion does not apply to Bodily Injury resulting from the use of rea- sonable force to protect persons or property. O. 1. Bodily Injury, Property Damage or Per- sonal and Advertising Injury arising out of the manufacture of, mining of, use of, sale of, installation of, removal of, distri- bution of, or exposure to asbestos, asbes- tos products, asbestos fibers or asbestos dust; 2. Any obligation of the Insured to indem- nify any party because of damages aris- ing out of such Bodily Injury, Property Damage or Personal and Advertising Injury as a result of the manufacture of, mining of, use of, sale of, installation of, removal of, distribution of, or exposure to asbestos, asbestos products, asbestos fi- bers or asbestos dust; or 3. Any obligation to defend any Suit or claim against the Insured alleging Bodily Injury, Property Damage or Pemonal and Advertising Injury and seeking damages if such Suit or claim arises from Bodily Injury, Property Damage or Per- sonal and Advertising Injury as a result of the manufacture of, mining of, use of, sale of, installation of, removal of, distri- bution of, or exposure to asbestos, asbes- tos products, asbestos fibers or asbestos dust. P. Bodily Injury or Personal and Advertising Injury to: '1. A person arising out of any: AIMUUM0017 3 2003 Page 8 of 13 ARCH INSURANCE COMPANY a. Refusal to employ that person; b. Termination of that person's employ- ment; or c. Employment-related practices, poli- cies, acts or omissions such as coer- cion, demotion, evaluation, reas- signment, discipline, defamation, harassment, humiliation or discrimi- nation directed at that person; or 2. The spouse, child, parent, brother or sis- ter of that person as a consequence of Bodily Injury or Personal and Advertis- ing Injury to that person at whom any of the employment-related practices de- scribed in paragraph a., b., or c. above is directed. This exclusion applies: '1. Whether the Insured may be liable as an employer or in any other capacity; and 2. To any obligation to share damages with or repay someone else who must pay damages because of the injury. Q. Bodily Injury or Property Damage for which any Insured may be held liable by reason of: '1. Causing or contributing to the intoxication of any person; 2. The furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or 3. Any statute, ordinance or regulation relat- ing to the sale, gift, distribution, or use of alcoholic beverages. However, if insurance for such Bodily Injury or Property Damage is provided by a policy listed in the Schedule of Underlying Insur- ance: '1. This exclusion shall not apply; and 2. The insurance provided by our policy will not be broader than the insurance cover- age provided by the policy listed in the Schedule of Underlying Insurance. R. Bodily Injury or Property Damage '1. a. With respect to which the Insured is also an Insured under a nuclear en- ergy liability policy issued by Nuclear Energy Liability-Property Insurance Assoc., Mutual Atomic Energy Liabil- ity Underwriters or Nuclear Insurance Association of Canada, or would be an Insured under any such policy but for its termination upon exhaustion of its limit of liability; or b. Resulting from the Hazardous Prop- erties of Nuclear Material and with respect to which (I) any person or any organization is required to main- tain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, (2) the Insured is, or had this policy not been available would be, entitled to indemnity from the United States of America or any agency thereof, under any agreement entered into by the United States of America or any agency thereof, with any person or organization. 2. Bodily Injury or Property Damage re- sulting from the Hazardous Properties of Nuclear Material, if: a. The Nuclear Material (1) is at any Nuclear Facility owned by the In- sured or operated by the Insured or on the Insured's behalf, or (2) has been discharged or dispensed there- from; b. The Nuclear Material is contained in Spent Fuel or Waste at any time possessed, handled, used, proc- essed, stored, transported or dis- posed of by the Insured or on the In- sured's behalf; or c. The Bodily Injury or Property Dam- age arises out of the furnishing by the Insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any Nuclear Fa- cility, but if such facility is located within the United States of America, its territories or possessions or Can- ada, this exclusion, c. applies only to Property Damage to such Nuclear Facility and any property thereat. 3. As used in this exclusion: a. Hazardous Properties includes ra- dioactive, toxic or explosive proper- ties; b. Nuclear Material means Source Ma- terial, Special Nuclear Material or By-product Material; c. Source Material, Special Nuclear Material and By-product Material have the meanings given them in the Atomic Energy Act of 1954 or any law amendatory thereof; AIMUUM0017 3 2003 Page 9 of 13 ARCH INSURANCE COMPANY d. Spent Fuel means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a Nuclear Reactor; e. Waste means any waste material (1) containing By-product Material and (2) resulting from the operation by any person or organization of a Nu- clear Facility included within the definition of Nuclear Facility below; f. Nuclear Facility means: (l) Any Nuclear Reactor, (2) Any equipment or device de- signed or used for (i) separating the isotopes of uranium or pluto- nium, (ii) processing or utilizing Spent Fuel, or (iii) handling, processing or packaging Wastes. (3) Any equipment or device used for the processing, fabricating, or al- loying of Special Nuclear Mate- rial if at any time the total amount of such material in the Insumd's custody at the prom- ises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235. (4) Any structure, basin, excavation, premises or place prepared or used for storage or disposal of Waste, and includes the site on which any of the foregoing is lo- cated, all operations conducted on such site and all premises used for such operations; g. Nuclear Reactor means any appara- tus designed or used to sustain nu- clear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material; h. Property Damage includes all forms of radioactive contamination of prop- erty. Bodily Injury, Property Damage or Per- sonal and Advertising Injury for which the Insured has assumed liability in a contract or agreement. This exclusion does not apply to liability for damages that the Insured would have in the absence of the contract or agreement. VI. Conditions A. Appeals If the Insured or the Insured's underlying insurers do not appeal a judgment in excess of the Retained Limit, we have the right to make such an appeal. If we elect to appeal, our liability on such an award or judgment shall not exceed our Limit of Insurance as stated in Item 3. in the Declarations plus the cost and expense of such appeal. B. Audit We may audit and examine your books and records as they relate to this policy at any time during the period of this policy and for up to three years after the expiration or termina- tion of this policy. C. Bankruptcy or Insolvency Your bankruptcy, insolvency or inability to pay or the bankruptcy, insolvency or inability to pay of any of your underlying insurers will not relieve us from the payment of any claim covered by this policy. But under no circumstances will such bank- ruptcy, insolvency or inability to pay require us to drop down and replace the Retained Limit or assume any obligation within the Re- tained Limit area. D. Cancellation '1. You may cancel this policy. You must mail or deliver advance written notice to us stating when the cancellation is to take effect. 2. We may cancel this policy. If we cancel because of nonpayment of premium, we must mail or deliver to you not less than ten (I0) days advance written notice stat- ing when the cancellation is to take effect. If we cancel for any other reason, we must mail or deliver to you not less than sixty (60) days advance written notice stating when the cancellation is to take ef- fect. Mailing that notice to you at your mailing address shown in Item 1. in the Declarations will be sufficient to prove no- tice. 3. The policy period will end on the day and hour stated in the cancellation notice. 4. If we cancel, final premium will be calcu- lated pre rata based on the time this pol- icy was in force. AIMUUM0017 3 2003 Page 10 of 13 ARCH INSURANCE COMPANY 5. If you cancel, final premium will be more than pro rata; it will be based on the time this policy was in force and increased by our short rate cancellation table and pro- cedure. 6. Premium adjustment may be made at the time of cancellation or as soon as practi- cable thereafter but the cancellation will be effective even if we have not made or offered any refund due you. Our check or our representative's check, mailed or de- livered, shall be sufficient tender of any refund due you. 7. The first Named Insured in Item 1. in the Declarations shall act on behalf of all other Insureds with respect to the giving and receiving of notice of cancellation and the receipt of any refund that may become payable under this policy. 8. Any of these provisions that conflict with a law that controls the cancellation of the insurance in this policy is changed by this statement to comply with the law. Changes Notice to any agent or knowledge possessed by any agent or any other person will not ef- fect a waiver or a change in any part of this policy. This policy can only be changed by a written endorsement that becomes a part of this policy and that is signed by one of our authorized representatives. Duties In The Event Of An Occurrence, Claim Or Suit '1. You must see to it that we are notified as soon as practicable of an Occurrence which may result in a claim under this policy. To the extent possible, notice should include: a. How, when and where the Occur- rence took place. b. The names and addresses of any in- jured persons and witnesses; c. The nature and location of any injury or damage arising out of the Occur- Fence. 2. If a claim is made or Suit is brought against any Insured that is reasonably likely to involve this policy you must no- tify us in writing as soon as practicable. must: 3. You and any other involved Insured a. Immediately send us copies of any demands, notices, summonses or le- gal papers received in connection with the claim or Suit; b. Authorize us to obtain records and other information; c. Cooperate with us in the investiga- tion, settlement or defense of the claim or Suit; and d. Assist us, upon our request, in the enfomement of any right against any person or organization which may be liable to the Insured because of in- jury or damage to which this insur- ance may also apply. 4. No Insureds will, except at their own cost, voluntarily make a payment, as- sume any obligation, or incur any ex- pense, other than for first aid, without our consent. Inspection We have the right, but are not obligated, to inspect your premises and operations at any time. Our inspections are not safety inspec- tions. They relate only to the insurability of your premises and operations and the premi- ums to be charged. We may give you reports on the conditions we find. We may also rec- ommend changes. While they may help re- duce losses, we do not undertake to perform the duty of any person or organization to pro- vide for the health or safety of your Employ- ees or the public. We do not warrant that your premises or operations are safe or healthful or that they comply with laws, regulations, codes or standards. Legal Actions Against Us There will be no right of action against us un- der this insurance unless: 1. You have complied with all the terms of this policy; and 2. The amount you owe has been deter- mined with our consent or by actual trial and final judgment. This insurance does not give anyone the right to add us as a defendant in an action against you to determine your liability. AIMUUM0017 3 2003 Page 11 of 13 ARCH INSURANCE COMPANY I. Maintenance of Underlying Insurance During the period of this policy, you agree: 1. To keep the policies listed in the Sched- ule of Underlying Insurance in full force and effect; 2. That any renewals or replacements of the policies listed in the Schedule of Underly- ing Insurance will not be more restrictive in coverage; 3. That the Limits of Insurance of the poli- cies listed in the Schedule of Underlying Insurance shall not change except for any reduction or exhaustion of aggregate lim- its by payment of claims for Occurrences that take place during the Policy Period; and 4. That the terms, conditions and endorse- ments of the policies listed in the Sched- ule of Underlying Insurance will not mate- rially change during the period of this pol- icy. If you fail to comply with these requirements, we will only be liable to the same extent that we would have been had you fully complied with these requirements. J. Other Insurance If other valid and collectible insurance applies to a loss that is also covered by this policy, this policy will apply excess of the other in- surance. However, this provision will not ap- ply if the other insurance is specifically written to be excess of this policy. K. Premium The first Named Insured designated in Item 1. in the Declarations shall be responsible for payment of all premiums when due. The premium for this policy shall be com- puted on the basis set forth in Item 6. in the Declarations. At the beginning of the policy period, you must pay us the Advance Pre- mium shown in Item 6. in the Declarations. When this policy expires or if it is cancelled, we will compute the earned premium for the time this policy was in force. If this policy is subject to audit adjustment, the actual expo- sure basis will be used to compute the earned premium. If the earned premium is greater than the Advance Premium, you will promptly pay us the difference. If the earned premium is less than the Advance Premium, we will re- turn the difference to you. But in any event we shall retain the Minimum Premium as shown in Item 6. in the Declarations for each twelve months of our policy period. L. Prior Insurance If a loss covered by this policy is also covered in whole or in part under any other excess policy issued to the Insured prior to the effec- tive date of this policy, our Limits of Insurance as stated in Item 3. in the Declarations will be reduced by any amounts due the Insured un- der such prior insurance. M. Separation of Insureds Except with respect to our Limits of Insurance and any dghts or duties specifically assigned to the first Named Insured designated in Item 1. in the Declarations, this insurance ap- plies: '1. As if each Named Insured were the only Named Insured; and 2. Separately to each Insured against whom claim is made or Suit is brought. N. Subrogation If any Insured has rights to recover all or part of any payment we have made under this pol- icy, those rights are transferred to us. The In- sured must do nothing after loss to impair these rights and must help us enforce them. Any recoveries shall be applied as follows: '1. Any interests, including the Insured, that have paid an amount in excess of our payment under this policy will be reim- bursed first; 2. We then will be reimbursed up to the amount we have paid; and 3. Lastly, any interests, including the In- sured, over which our insurance is ex- cess, are entitled to claim the residue. Expenses incurred in the exercise of rights of recovery shall be apportioned between the in- terests, including the Insured, in the ratio of their respective recoveries as finally settled. O. Transfer Of Your Rights And Duties. Your rights and duties under this policy may not be transferred without our written consent. If you die or are legally declared bankrupt, your rights and duties will be transferred to your legal representative but only while acting within the scope of duties as your legal repre- sentative. However, notice of cancellation sent to the first Named Insured designated in Item AIMUUM0017 3 2003 Page 12 of 13 ARCH INSURANCE COMPANY 1. in the Declarations and mailed to the ad- dress shown in this policy will be sufficient no- tice to effect cancellation of this policy. P, When LoSs IS Payable Coverage under this policy will not apply un- less and until the Insured or the Insured's underlying insurer is obligated to pay the Re- tained Limit. When the amount of loss has finally been determined, we will promptly pay on behalf of the Insured the amount of loss falling within the terms of this policy. You shall promptly reimburse us for any amount within the Self-Insured Retention paid by us on behalf of an Insured. AIMUUM0017 3 2003 Page 13 of 13 ARCHINSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART'OF (Standard Time) INSURED AGENCYAND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PUBLIC ENTITY AMENDATORY ENDORSEMENT DEFINITION OF INSURED This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE INSURING AGREEMENTS IV. Definition F., Insured is deleted in its entirety and replaced with the following: F. Insured means: '1. Insured as used herein means the entity designated in the Declarations as the Named Insured and, except as excluded by endorsement to this policy, the following: a; A governmental agency or subdivision, department, municipal body, board or commission, or not-for-prefit corporation which is owned and controlled by you. b. All persons who were, now are, or shall be elected or appointed or employed members of any board, commission or agency of yours while acting within the scope of their duties. c. Any person while providing services under a mutual aid agreement, joint powers agreement or similar arrangement, but only with respect to the conduct of your business and only to the extent of your participation or your interest. d. Your Employees and volunteers but only for acts within the scope of their employment by you or in the course of their duties for you and at your direction. However, no Employee or volunteer is an Insured for: (1) Bodily Injury or Personal and Advertising Injury: (a) To you or to a co-Employee or other volunteer while that co- Employee or (b) other volunteer is either in the course of his or her employment or while acting at the direction of, and within the scope of their duties for you; (b) To the spouse, child, parent, brother or sister of that co- Employee or other volunteer as a consequence of paragraph (a) above; (c) For which there is an obligation to share damages with or repay someone else who must pay damages because of the injury described in paragraphs (a) or (b) above; or (d) Arising out of his or her providing or failing to provide professional health care services. But this exclusion does not apply to an Employee or volunteer of yours who is a paramedic, emergency medical technician, or licensed or registered visiting nurse while acting within the scope of their employment by you or in the course of their duties for you. (2) Property Damage to property: (a) Owned, occupied, or used by, (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by (c) you, any of your Employees, or any of your volunteers. AIMUUM0066 3 2003 Page 1 of 2 ARCH INSURANCE COMPANY 2. With respect to Mobile Equipment registered in your name under any motor vehicle registration law, any person is an Insured while driving such equipment along a public highway with your permission. Any other person or organization responsible for the conduct of such person is also an Insured, but only with respect to liability arising out of the operation of the equipment, and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an Insured with respect to: {a) Bodily Injury to a co-Employee of the person driving the equipment, or (b) Property Damage to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an Insured under this provision. 3. Any municipality, special distdct or other entity you newly acquire or form will qualify as a Named Insured if there is no other similar insurance available to that municipality, special district or other entity. However: a. Coverage under this provision is afforded only until the 90th day after you acquire or form the organization or, the end of the policy period, whichever is earlier; b. Coverage under this provision does not apply to Bodily Injury or Property Damage that occurred before you acquired or formed the organization; and c. Coverage under this prevision does not apply to Personal and Advertising Injury arising out of an offense committed before you acquired or formed the organization. No person or organization is an Insured with respect to the conduct of any current or past partnership, joint venture, or limited liability company that is not shown as a Named Insured in the Declaretions. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0066 3 2003 Page 2 of 2 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LEAD CONTAMINATION EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE This insurance does not apply to: Occurrences at or from any premises, site or location which is or was at any time owned or occupied by or rented or loaned to any Insured or from the operations of the Insured, which result in: 1. Bodily Injury arising out of the ingestion, inhalation or absorption of lead in any form; 2. Property Damage or Personal and Advertising Injury adsing from any form of lead; Any loss, cost or expense arising out of any request, demand, order or statutory or regulatory requirement that any Insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize or in any way respond to or assess the effects of lead; or Any loss, cost or expense arising out of any claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing or in any way responding to or assessing the effects of lead. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0053 3 2003 ARCHINSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AIRPORT LIABILITY EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE This insurance does not apply to: Bodily Injury or Property Damage arising out of the ownership, maintenance, operation or use of any airfield equipped with Federal Aviation Administration controlled towers, including all runways, hangars, buildings or other properties in connection with aviation activities or any other use of airport facilities or properties. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUMO003 3 2003 ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NON-OWNED AIRCRAFT LIABILITY EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE This insurance does not apply to Bodily Injury, Property Damage, or Personal and Advertising Injury arising from the use, maintenance, operation, loading or unloading of a non-owned aircraft. Non-owned aircraft means an aircraft which the Insured does not own. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0059 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR, 12:01 NOON A,M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DAMS OR RESERVOIRS EXCLUSION This endomement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE This insurance does not apply to Bodily Injury, Property Damage or Personal and Advertising Injury arising out of collapse, flooding, cracking, settling, seepage, underseepage, spillage, subsidence, landslide or other earth movement of any dam or reservoir owned, operated, maintained, constructed or controlled by any Insured. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0027 3 2003 ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND coDE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PUBLIC ENTITY POLLUTION EXCEPTION FOR PARTIAL SEWAGE This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE The pollution exclusion does not apply to Property Damage to a building or its contents caused by actual exposure to sewage resulting from: 1. The reverse flow of such sewage from within any sewage facility that you own, operate or maintain; or 2. The escape of sewage form any fixed conduit that you own, operate or maintain, but only if the escape occurs away from land you own or lease; ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0068 3 2003 ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PUBLIC ENTITY AMENDATORY ENDORSEMENT ADDITIONAL EXCLUSIONS This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE INSURING AGREEMENT V. Exclusions is amended to include the following exclusions: This insurance does not apply to: 1. Bodily injury or Property Damage adsing out of the failure of any Insured to adequately supply gas, oil, water, electricity or steam by any utility, whether owned or not by any Insured. Except for those Insureds generating their own electric power, this exclusion does not apply if the failure results from the sudden and accidental injury to tangible property owned or used by any Insured to procure, produce, process or transmit the gas, oil, water, electricity or steam. Bodily Injury, Property Damage or Personal and Advertising Injury arising out of the ownership, maintenance or use of any premises or portion of any promises used as a hospital or nursing home. Bodily Injury, Property Damage or Personal and Advertising Injury arising out of the rendering or failing to render professional health care services. This exclusion does not apply to Bodily Injury, Property Damage or Personal and Advertising Injury arising out of the rendering or failure to render medical services by an Employee or volunteer who is a paramedic, emergency medical technician or a licensed or registered visiting nurse qualifying as an Insured under this policy. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0067 3 2003 ARCHINSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. INDIANA CHANGES - CANCELLATION AND NONRENEWAL This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE SECTION VI -- Conditions, paragraph D.2., Cancellation, is deleted and replaced by the following: 2. a. Cancellation Of Policies In Effect For 90 Days Or Less If this policy has been in effect for 90 days or less, we may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least: (1) 10 days before the effective date of cancellation if we cancel for nonpayment of premium; (2) 20 days before the effective date of cancellation if you have perpetrated a fraud or matedal misrepresentation on us; (3) 30 days before the effective date of cancellation if we cancel for any other reason. b. Cancellation Of Policies In Effect For More Than 90 Days If this policy has been in effect for more than 90 days, or is a renewal of a policy we issued, we may cancel this policy, only for one or more of the reasons listed below, by mailing or delivering to the first Named Insured written notice of cancellation at least: (1) 10 days before the effective date of cancellation if we cancel for nonpayment of premium; (2) 20 days before the effective date of cancellation if you have perpetrated a fraud or material misrepresentation on us; (3) 45 days before the effective date of cancellation if: (a) There has been a substantial change in the scale of risk covered by this policy; or (b) Reinsurance of the risk associated with this policy has been cancelled. The following is added to SECTION VI -- Conditions and supersedes any provision to the contrary. Q. Nonrenewal 1. If we elect not to renew this policy, we will mail or deliver to the first Named Insured written notice of nonrenewal at least 45 days before: a. The expiration date of this policy, if the policy is written for a term of one year or less; or b. The anniversary date of this policy, if the policy is written for a term of more than one year, 2. We will mail or deliver our notice to the first Named Insured's last mailing address known to us. If notice is mailed, proof of mailing will be sufficient proof of notice. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE AIMUUM0047 3 2003 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1997 DATE ARCHINSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. INJURY TO VOLUNTEER FIREMEN OR VOLUNTEER POLICEMEN EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE This insurance does not apply to Bodily Injury or Personal and Advertising Injury to any volunteer firemen or volunteer policemen, whether or not members of the Insured's organiazation, while in the the course of their duties as such. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0048 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. INJURY TO VOLUNTEERS EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE This insurance does not apply to Bodily Injury or Personal and Advertising Injury to any volunteer, whether or not members of the Insured's organiazation, while in the the course of their duties as such. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0049 3 2003 ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAR OR TERRORISM EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE A. Exclusion M. under Section V. Exclusions is replaced by the following: This insurance does not apply to: M. War Or Terrorism Bodily Injury, Property Damage or Personal and Advertising Injury arising, directly or indirectly, out of: · 1.War, including undeclared or civil war; or 2. Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or 3. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these; or 4. Terrorism, including any action taken in hindering or defending against an actual or expected incident of Terrorism regardless of any other cause or event that contributes concurrently or in any sequence to the injury or damage. However, with respect to Terrorism, this exclusion only applies if one or more of the following are attributable to an incident of Terrorism: 1. The total of insured damage to all types of property exceeds $25,000,000. In determining whether the $25,000,000 threshold is exceeded, we will inctude all insured damage sustained by property of all persons and entities affected by the Terrorism and business interruption losses sustained by owners or occupants of the damaged property. For the purpose of this provision, insured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the application of any terrorism exclusions; or 2. Fifty or more persons sustain death or serious physical injury. For the purposes of this provision, serious physical injury means: a. Physical injury that involves a substantial risk of death; or b. Protracted and obvious physical disfigurement; or c. Protracted loss of or impairment of the function of a bodily member or organ; or 3. The Terrorism involves the use, release or escape of nuclear materials, or directly or indirectly results in nuclear reaction or radiation or radioactive contamination; or 4. The Terrorism is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or AIMUUM0084 3 2003 Page 1 of 2 includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 2001 ARCH INSURANCE COMPANY 5. Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the Terrorism was to release such materials. Paragraph 1. and 2., immediately preceding, describe the thresholds used to measure the magnitude of an incident of Terrorism and the cimumstances in which the threshold will apply for the purpose of determining whether the Terrorism Exclusion will apply to that incident. When the Terrorism Exclusion applies to an incident of Terrorism, there is no coverage under this Coverage Part. In the event of any incident of Terrorism that is not subject to the Terrorism Exclusion, coverage does not apply to any loss or damage that is otherwise excluded under this Coverage Part. Multiple incidents of Terrorism which occur within a seventy-two hour period and appear to be carried out in concert or to have a related purpose or common leadership shall be considered to be one incident. B. The following definition is added to the Definitions Section: Terrorism means activities against persons, organizations or property of any nature: 1. That involve the following or preparation for the following: a. Use or threat of fome or violence; or b. Commission or threat of a dangerous act; or c. Commission or threat of an act that interferes with or disrupts an electronic, communication, information, or mechanical system; and 2. When one or both of the following applies: a. The effect is to intimidate or coerce a government or the civiJian population or any segment thereof, or to disrupt any segment of the economy; or b. It appears that the intent is to intimidate or coerce a government, or to further political, ideological, religious, social or economic objectives or to express (or express opposition to) a philosophy or ideology. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0084 3 2003 Page 2 of 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 2001 ARCH INSURANCE COMPANY ENDORSEMENT NO, ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCYAND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDMENT OF INSURING AGREEMENT -- KNOWN INJURY OR DAMAGE This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE I. Coverage of the INSURING AGREEMENTS is replaced by the following: I. Coverage A. We will pay on behalf of the Insured those sums in excess of the Retained Limit that the Insured becomes legally obligated to pay as damages by reason of liability imposed by law or assumed by the Insured under an Insured Contract because of Bodily Injury, Property Damage or Personal and Advertising Injury to which this insurance applies. The insurance applies to Bodily Injury, Property Damage or Personal and Advertising Injury only if: '1. The Bodily Injury, Property Damage or Personal and Advertising Injury takes place during the Policy Pedod; 2. The Bodily Injury, Property Damage or Personal and Advertising Injury is caused by an Occurrence anywhere in the world; and 3. Prior to the Policy Period, no Insured knew that the Bodily Injury, Property Damage or Personal and Advertising Injury had occurred, in whole or in part. If any Insured knew, prior to the Policy Period, that the Bodily Injury, Property Damage or Personal and Advertising Injury occurred, then any continuation, change or resumption of such Bodily Injury, Property Damage er Personal and Advertising Injury during or after the Policy Period will be deemed to have been known prior to the Policy Period. Bodily Injury, Property Damage or Personal and Advertising Injury which occurs during the Policy Period and was not, prior to the Policy Period, known to have occurred by any Insured includes any continuation, change or resumption of that Bodily Injury, Property Damage or Personal and Advertising Injury after the end of the Policy Period. Bodily Injury, Property Damage or Personal and Advertising Injury will be deemed to have been known to have occurred at the earliest time when any Insured: 1. Reports all, or any part, of the Bodily Injury, Property Damage or Personal and Advertising Injury to us or any ether insurer; 2. Receives a written or verbal demand or claim for damages because of the Bodily Injury, Property Damage or Personal and Advertising Injury; or 3. Becomes aware by any other means that Bodily Injury, Property Damage or Personal and Advertising Injury has occurred or has begun to occur. AIMUUM0004 3 2003 Page 1 of 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 2001 ARCH INSURANCE COMPANY The amount we will pay for damages is limited as described in Insuring Agreement III, Limits of Insurance. If we are prevented by law or statute from paying on behalf of the Insured, then we will, where permitted by law or statute, indemnify the Insured for those sums covered by the terms of this policy that the Insured is obligated to pay as damages in excess of the Retained Limit. ALL OTHER TERMS AND CONDITIONS OF THiS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0004 3 2003 Page 2 of 2 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, thC., 2001 ARCHINSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FIREWORKS EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE This policy does not apply to any liability caused, directly or indirectly, by fireworks or any similar explosive material. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0041 3 2003 ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. STACKING OF LIMITS ENDORSEMENT This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE With respect to losses for Bodily Injury, Property Damage, or Personal and Advertising Injury covered by this policy, if the Company should issue another policy to any Insured with similar coverage, the Company's Limit of Insurance under all such policies is not the total of limits of insurance of all these policies; it is, instead, an amount equal to the single highest limit of any one of these policies. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0079 3 2003 ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FUNGI OR BACTERIA EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE A. The following exclusion is added to section V. Exclusions: V. Exclusions This insurance does not apply to: FUNGI OR BACTERIA 1. a. Bodily Injury or Property Damage which would not have occurred, in whole or in part, but for the actual, alleged or threatened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of, any Fungi or bacteria on or within a building or structure, including its contents, regardless of whether any other cause, event, material or product contributed concurrently or in any sequence to such injury or damage. b. Any loss, cost or expenses arising out of the abating, testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, neutralizing, remediating or disposing of, or in any way responding to, or assessing the effects of, Fungi or bacteria, by any Insured or by any other person or entity. This exclusion does not apply to any Fungi or bacteria that are, are on, or are Bo contained in, a good or product intended for consumption. 2. a. Personal and Advertising Injury which would not have taken place, in whole or in part, but for the actual, alleged or threatened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any Fungi or bacteria on or within a building or structure, including its contents, regardless of whether any other cause, event, material or product contributed concurrently or in any sequence to such injury. b. Any loss, cost or expenses adsing out of the abating, testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, neutralizing, remediating or disposing of, or in any way responding to, or assessing the effects of, Fungi or bacteria, by any Insured or by any other person or entity. The following definition is added to the Definitions Section: Fungi means any type or form of fungus, including mold or mildew and any mycotoxins, spores, scents or byproducts produced or released by fungi. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0044 3 2003 Includes copyrighted matedal of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 2001 ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AUTO LIABILITY FOLLOWING FORM This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE This insurance does not apply to Bodily Injury or Property Damage arising out of the ownership, maintenance, operation, use, entrustment to others, loading or unloading of any Auto. However, if insurance for such Bodily Injury or Property Damage is provided by an underlying policy listed in the Schedule of Underlying insurance: 1. This exclusion shall not apply; and 2. The insurance provided by our policy will not be broader than the insurance coverage provided by the underlying policy listed in the Schedule of Underlying Insurance. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0009 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CONTRACTUAL LIABILITY FOLLOWING FORM This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE This insurance does not apply to Bodily Injury, Property Damage, or Personal and Advertising Injury arising out of any wdtten, oral, or implied contract or agreement entered into by the Insured. However, if insurance for such Bodily Injury, Property Damage, or Personal and Advertising Injury is provided by an underlying policy listed in the Schedule of Underlying Insurance: 1. This exclusion shall not apply; and 2. The insurance provided by our policy will not be broader than the insurance coverage provided by the underlying policy listed in the Schedule of Underlying Insurance. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0024 3 2003 ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M, THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PUBLIC OFFICIALS ERRORS & OMISSIONS FOLLOWING FORM ENDORSEMENT This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE This policy does not apply to any liability adsing out of the Insured's activities as a municipality, municipal council or as an elected or appointed member or official for any actual or alleged error, misstatement or misleading statement, act or omission, or neglect or breach of duty by the Insured or by any other person for whose acts the Insured is legally responsible. This exclusion does not apply if such liability is covered by valid and collectible underlying insurance as listed in the Schedule of Underlying Insurance for the full limit shown, and then only for such liability for which coverage is afforded under the underlying insurance. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0072 3 2003 ARCH INSURANCE COMPANY ENDORSEMENTNO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LAW ENFORCEMENT LIABILITY FOLLOWING FORM ENDORSEMENT This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE This policy does not apply to any Bodily Injury, Property Damage, or Personal and Advertising Injury resulting from the operations or activities of any police department or any other law enforcement agency of the Insured including any agent or Employee thereof, unless such liability is covered by valid and collectible underlying insurance as listed in the Schedule of Underlying Insurance for the full limit shown, and then only for such liability for which coverages is afforded under the underlying insurance. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0052 3 2003 ARCH INSURANCE COMPANY ENDORSEMENT NO. ATTACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) INSURED AGENCY AND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EMPLOYMENT-RELATED PRACTICES ENDORSEMENT This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE This insurance does not apply to Bodily Injury or Personal and Advertising Injury to: 1. A person arising out of any: a. Refusal to employ that person; b. Termination of that person's employment; or c. Employment-related practices, policies, acts or omissions, such as but not limited to coercion, criticism, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation or discrimination directed at that person; or 2. The spouse, child, parent, brother or sister of that person as consequence of Bodily Injury or Personal and Advertising Injury to that person at whom any of the employment-related practices described in paragraphs 1. a., b. or c. above is directed. This exclusion applies: 1. Whether the Insured may be liable as an employer or in any other capacity; and 2. To any obligation to share damages with or repay someone else who must pay damages because of the injury. However, if insurance for such Bodily Injury or Personal and Advertising Injury is provided by a policy listed in the Schedule of Underlying Insurance: 1. This exclusion shall not apply; and 2. The insurance provided by our policy will not be broader than the insurance coverage provided by the underlying policy listed in the Schedule of Underlying Insurance. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0036 3 2003 ARCH INSURANCE COMPANY ENDORSEMENTNO. A~'ACHED TO AND ENDORSEMENT EFFECTIVE FORMING A PART OF (Standard Time) iNSURED AGENCYAND CODE POLICY NUMBER MO. DAY YR. 12:01 NOON A.M. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. COMMUNITY ANTENNA TELEVISION OR CABLE TELEVISION EXCLUSION This endorsement modifies insurance provided under the following: COMMERCIAL UMBRELLA COVERAGE This insurance does not apply to Bodily Injury, Property Damage, or Personal and Advertising Injury arising out of: 1. The utterance, dissemination, distribution or use of program or advertising material in connection with community antenna television or cable television; or 2. The failure to provide or transmit any program, or the interruption of television service. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED AUTHORIZED REPRESENTATIVE DATE AIMUUM0021 3 2003