club villages, llc v. westchester surplus lines insurance company complaint

8/8/2019 CLUB VILLAGES, LLC v. WESTCHESTER SURPLUS LINES INSURANCE COMPANY Complaint

http://slidepdf.com/reader/full/club-villages-llc-v-westchester-surplus-lines-insurance-company-complaint 1/97

IN THE CIRCUIT COURT OF THE FIFTEENTH ruDICI.AL CIRCUTT

IN A}ID FOR PALM BEACH COUNTY, FLORIDACryIL DIVISION

CLIJB VILLAGES, LLC as assignee of GOLDCOAST REALTY II.II/ESTORS, LLC,

4fr

50 z0lfi 0A0 ¿ 6 6 17 xxfixtrPetitioners, Case No.:

v.

wEsrcHEsrER suRpLUs LrNES rNsuRANcE coMpANr Rrce¡v*8råäFILTNG

Respondent. täT 3 | ¿Ûta

p'rrrroN ro coMpEL AppRArsAL. *r"""tffiilïiffi*COMPLAINT FOR BREACH OF CONTRACT;

AND DECLARATORJ JUD@TENT

Petitioner, CLUB VILLAGES, LLC as assignee of GOLD COASTREALTY

INVESTORS, LLC, , (hereinafter'?etitionet'), by and through the undersigned counsel, files

this Petition to Compel Aþpraisal, Select Umpire, Complaint for Breach of Contact, and

Declaratory Judgment against Respondent, WESTCHESTER SLJRPLUS LINES INSLJRANCE

COMPANY and states the following:

GENERAL ALI,ESAI$ONS

l. This is an action for damages in excess of Fifteen Thousand Dollars ($15,000.00)

exolusive of court costs, prejudgment interest and attomeys fees.

2. At all times material hereto, Petitioner had an insurable interest in real property

located at 1601 N.W. l3'h Street, Boca Raton, Palm Beach County, Florida (hereinafrer the

"insured premises").

Case 9:10-cv-81482-WJZ Document 1-4 Entered on FLSD Docket 11/16/2010 Page



3. At all times material hereto, Respondent was an insurance company authorized to

conduct business in the State of Florida and was engaged in the business of inswance in Palm

Beach County, Florida.

4 ln consideration of the premiums paid to it by Petitioner, Respondent issued to

Petitioner in Palm Beach County, Florida, a contract of insuance, bearing policy number

D3505433 5001. A copy of the policy is attached hereto as Erhibit "1".

5. On or about October 24,2A05, Hur¡ica¡re rüilma, a covered peril, struck the south

Florida area, damaging the Petitioner's insured premises,

6, The subject insurance policy was in fult force and effect at the time of the loss.

7, Petitioner timely notified tl¡e Defendant, WESTCHESTER SURPLUS LINES

INSURANCE COMPANY, by and through one of its agent(s), and/or representatives, and

provided notice of the covered loss.

8. Petitioner has complied with all conditions precedent to the filing of this action,

and/or they have been waived by Respondent.

g. Respondent has failed to pay the Petitioner's for the covered damages as required

under the policy.

10. Pursuant to the appraisal provision contained within the policy, should either party

dispute the value of the lóss, either parly may request appraisal.

ll. Petitioner previously made their written demand for appraisal on or about

December 10, 2A09. WESTCHESTER SURPTUS LINES INSURANCE COMPANY

acknowledged receipt of said written demand for appraisal in its conespondence dated January 5,

2010; att¿ched hereto as Exhibit r2.'




12. WESTCHESTER SURPLUS LINES INSLIRANCE COMPANY has previously

admitted that the loss was as a result of a covered peril.

13. During the course of 1VESTCHESTER SURPLUS TINES INSURAì{CE

COMPANY'S investigation, they have requested, and been provided, among other things,

examinations under oath of the Petitione(s), and extensive documentation and/or other materials

evidencing damage(s) to the covered property,

14. Despite the abovq to date Respondent has refused to participate in the appraisal.

couNTJCOMPEL APPRAISôL.

15. Petitioner re-alleges all allegations contained in Paragraphs I through 14 as

though set forth firlly herein and fr¡rther alloges:

16. This is an action upon the afo¡ementioned policy of insurance which permits

either party to make written demand for an appraisal of a loss in the event the parties disagree on

the amount of the loss.

L?. Respondent has failed to pay Petítioner the full insurance benefits owed under the

policy for the Hurricane Wilma loss to the insured premises.

18. As Petitioner disagrees with the Respondent ove¡ the value of the loss, this claim

is appropriate for the appraisal process.

19. Petitioner made a witten demand to Respondent for an appraisal.

20. Respondent has refused toparticipate

in the appraisalprocess'

2I. As a result of Respondent's failwe to pay Petitioner the full insurance benefits

owed under the policy, and as a result of Respondent's failu¡e to comply with the appraisal

prooedure set forth in the polic¡ Petitioner has been forced to retain the undenígned atüomeys




and is obligated to pay a reæonable fee for their services. Petitioner is entitled to payment from

Respondent for attorney's fees pursuant to Sectíon 627,428 of the Florida Statutes, legal assistant

fees pursuant to Section 57,104 of the Florida Statules, and attorney's costs, including expert

fees, pr:rsuant to Section 57.041of the Florida Statutes.

WIIEREFORE, Petitioner respectfully requosts that this Court enter an Order compelling

Respondent to immediately proceed with an appraisal of all damages sustained at the insured

premises resulting from Hurricane Vy'ilma. Petitioner further requests that a judgment be entered

for the arnount of the loss as determined by the appraisal award and, if any firrther recovery is

obtained by Petitioner's, that Respondent be required to pay Petitioner's attorney's fees, costs

and prejudgment interest. Petitioner demands a hial by jnry on all issues so hiable. Petitioner

requests such other relief as this Court deems just and proper.

couNr IJSELECTION OF I'MPIRN

22. Petitioner re-alleges all allegations contained in Paragraphs I through 21 as

though set forth firlly herein and fu¡ther alleges:

23. This is an action upon the aforementioned policy of insurance which permits

oither party to request that a judge of a court having jurisdiction select an appraisal umpire if the

parties' appraisers carmot agree within 15 days.

24. Respondent has failed to pay Petitioner's tt¡e ñ¡ll insurance benefits owed under

the policy for the Hu¡ricane rüilma loss to the insured premises.

25. The parties disagree regarding the amounts of the subject loss ¡esulting from

hruricane activity.




26. Petitioner made a r¡¡ritten demand for arr appraisal, but Respondent has refused to

participate in the appraisal process other than identifring its appraÍser.

27. As a result of Respondent's failr¡re to proceed with appraisal, the timely selection

of an umpire in accordance with the policy terms hæ failed to occtu.

28. As a result of Respondent's failure to pay Petitioner the full insurance benefits

owed under the policy, and as a ¡esult of Respondent's failwe to comply with the appraisal

procedure set forth in the policy, Petitioner has been forced to retain the undersigned attorneys

and are obligated to pay a reasonable fee for their services. Petitioner is entitled to payment from

Respondent for attomey's fees pu$uant to Section 627 .428 of the Florida Stailtes, legal assistant

fees prrsuant to Section 57.104 of the Flo¡ida Statutes, and atüorney's costs, including expert

fees, ptusuant to Section 57.041 of the Florida Statutes.

29. Petitioner would proposc one of the following candidates to be named as the

umpire in this matter:

a) Walter Colbath ßetired Circuit Court Judge - 15û Jud. Circuit)b) James Carlisle (Retired Circuil Court Judge - 15'Jud. Circuit)c) Roger B. Colton (Retired Circuit Court Judge - lsu Jud. Circuit)

Printouts of their backgrounds are attached as Composite Exbib¡t "3t.

WHEREFORE, Petitioner respectfully requests this Honorable Couf appoint and

select an umpire for the appraisal of all damages sustained at the insu¡ed premises resulting from

Huricane Wilma.Petitioner further request that a judgment be entered for the amount of the

loss as determined by the appraisal award and, if any fr¡rther reoovery is obtained by Petitíoner,

that Respondent be required to pay Petitione¡'s attomey's fees, costs and prejudgment interest.




Petitioner's demand a trial by jury on all issues so tiable. Petitioner requests such other relief as

this Cor¡rt deems just and ProPer.

copNT IIrBREACII oll C.ONTRAçT

FAILU,RE æ PARTICIPATE IN..APPBAI$AL

30. Petitioncr re,alleges the allegations contained in Paragraph I throuùt 29 as

though set forth ftrlly herein and fr¡rther alleges:

3l . This is an aotion upon the aforementioned policy of insr¡rance which permits either

pa¡ty to mske written demand for an appraisal of a loss in the event the parties disagree on the

amount of the loss.

32. The parties disagree regarding the amounts of the subject loss resulting from

Hr¡¡ricane Wilma.

33. Petitioner made a w¡itten demand to Respondent for an appraisal.

34, TVESTCHESTER SURPLUS LINES INSURANCE COMPA}TY hAS TCñ¡SEd tO

participate in the appraisal process.

i¡5. Respondent breached the subject polioy of insurance by failing to comply with

the appraisal procedute sot forth in the policy.

36, Petitionor suffered damage as a result of Respondent's breach of 'the subjeot

polioy.

37. As a ¡esult of Respondent's failure to comply with the appraisal procedure set

forth in the policy, potitioner has been forced to retain the undersigned attomeys and is obligated

to pay a reasonable fee for thei¡ services. Petitioner is entitled to payment from Respondent for

attorney's fees pwsuant to Section 627 .428 of the Florida Statutes, lcgal assistant feos prusuant




to Section 57j04 of the Florida Statutes, and attomey's costs, including expert fees, pursuant to

Section 57.041 of the Florida Statutes.

WHEREFORE, Petitioner respectfully demands an award of damages for breach of

contract and an award of attorney fees, a determination as to liability, costs and prejudgment

interest against Respor¡dent. Petitioner fi¡rther demands a trial by jury on all issues so tiable and

such other relief as this Court deems just and proper.

coLlNTIVpE_CLARATO Ry JUD_çMENT

38. Petitioner re-alleges the allegations contained in Paragraph I through 37 as

though set forth fully herein and fruther alleges:

39, This is an action seeking declaratory relief pursuant to Section 86.011 of the

Florida Statutes.

40. The parties to the aforementioned policy of insurance a¡e in doubt regarding their

rights and obligations under the polioy and have a bona fide dispute conceming whether an

appraisal should be ordered to proceed, the scope of the appraisal, the timeliness of the inst¿nt

action, and the scope of remedy available to Petitioner.

' 41. In the event Petitioner obtains any declaratory relief from this action, or obtains

additional sums for the losses as a ¡esult of a favo¡able outcome of the appraisal, Petitioner seeks

entitlement fo attomey fees, costs and prejudgment interest.

42. The issues of attorney fees, costs and prejudgment interest should be reserved for

the Cou¡t rather than detemrined by the appraisal panel beoause the policy of insu¡anoe limits the

panel's determination to the amount of the losses sustained.

43. CLUB VILLAGES, LLC as assignee of GOLD COASTREALTY INVESTORS,




LLC, insured property was damaged as a result of Hunicane Wilma on or about October 24,

2005.44. Petitioner timely notífied WESTCHESTER SURPLUS TINES INSURANCE

COMPANY of the covered loss.

45. On or about December 10, 2009, Petitione¡ demanded appraisal pr¡rsuant to the

subj ect insurance pohcy.

46. WESTCHESTER SURPLUS LIMS INSURANCE COMPANY, has admitted

partial coverage under the policy as it has made multiple payments to the inswed to daæ.

47. Florida Statute $ 95.11(2Xb) states in pertinent part that an action for breach of

conhact must be commenced within five (5) years in order to be timely filed.

48. Florida Statute $ 95.11(2)0) does not expressly speciS the point in time from

which the five (5) year statute of limitations begins to ruû, howevcr, some Florida courts have

held that the five (5) year period begins on the date the insurance contract is breached; while

others have held ftom the day of the event giving rise to the claim.

49. IVhils CLUB VILIAGES, LLCas assignee of GOLD COASTREALTY

INVESTORS, LLC, agrees with the rulings that state the breach does not necessarily have to be

the sa¡ne day as the event giving rise to the claim, they recognize the potential implications that

could result from failing to commence an action before the end of the 'altemative' potential

statute of limitations date; that being October 24,201,0 (5 years ftom the date of Hunica¡re

V/ilma). Thus, in an abundance of caution, CLUB VILLAGES, LLC, as assignee of GOLD

COAST REALTY IIIVESTORS, LLC hæ filed the instant action(s) for Petition to Compel

Appraisal, Select Umpire, and Complaint for Breach of Contract'




50, While Petitioner is cognizant of the fact that all post-loss obligations must be

satisfied befo¡e they institute any lawsuit against their insurer, and while it believes in good faith

that it has firlly complíed with said obligations, CLUB VILLAGES,LLC, as assignee of GOLD

COAST REALTY INVESTORS, LLC also recognizes that the Responde.nt may attempt to

allege that it has not satisfied said obligations if, and when, the insured institutes a lawsuit such

as the instant action(s). As such, CLUB VILLAGES, LLC, as assignee of GOLD COAST

REALTY INVESTORS, LLC have filed the instant action(s), the Petition to Compel Appraisal,

Select Umpire, arrd Complaint for Breach of Contract, at this time due to ttre potential statute of

Iimitations issue.

51. CLUB VIILAGES, LLC, as assignee of GOLD COAST REALTY INVESTORS,

LLC is in need of immediate action from this Court in order to protect its legal rights and ability

to scek appropriate remedies from this Court. Specifically, it requests this Honorable Court to

declare that the date rl:, ¡¡ WESTCHESTER SLJRPLUS LINES INSURANCE COMPANY

breached the contract was on or about January 5, 2010, when WESTCHESTER SURPLUS

LINES INSURANCE COMPANY, for all intents and purposes, STATE FARM formally refrrsed

to name its appraiser (see E:<hibit "?).

SZ. CLL;B VILLAGES, LLC, as assignee of GOLD COAST REALTY INVESTORS,

LLC, also requests this Court to declare that the date that the stah¡te of limitations begins to run

is rhe date that WESTCHESTER SURPLUS LINES INSURA]rICE COMPANY breached the

insurance contac! January 5,2010.

53. Further, CLUB VILLAGES, LLC, as assignee of GOLD COAST REALTY

INVESTORS, LLC request this Court to enter an order staying CLUB VILLACBS, LLC, as




assig¡ree of GOLD COAST REALTY INVESTORS, LLC Petition to Compel Appraisal, Select

Umpirg and Complaint for Breach of Contuact until such time as the parties can complete the

appraisal process, in a timely fashion, and potentially resolve the claim,


INVESTORS, LLC requests this Court to enter an orde¡ requiring WESTCHESTER SURPLUS

LINES INSURAI.{CE COMPANY to immediately begin the appraisal process.


INVESTORS, LLC requests this Court to enter an order stating that due to the nature of the

impending potential statute of limitations date, the Petitioner is not in violation of any alleged

post loss obligation(s); i.e. failing to provide any requested information/documentation to

Respondent and/or failing to submit to an examination r¡nder oath.

WHEREFORE, PtaintìË CLUB VILLACES, LLC, as assignee of GOLD COAST

REALTY IN\|ESTORS, LLC, respectfrrlly request this Court declare:

l. That the date IVESTCHESTER SURPLUS LINES INSURANCE COMPANY

breached the insurance contract is the date it failed to name its appraiser and irnmediately

proceed with tl¡e appraisal prccess; that being January 5, 2010;

2. That the five year statute of limitations for breach of an insurance contract begins

to run on January 5, 2010;

3, That CLUB VILLAGES, LLC, as assignee of GOLD COAST REALTY

INVESTORS, LLC Petition to Compel Appraisal, Select Umpire, and Complaint for Breach of

Conüact is timely filed, but is sayed pending the outcome of the appraisal process;




4. That Respondent is required to immediately proceed with the appraisal process

rurder the policy of the entire loss; and not simply portions thereof;

5 That CLIJB VILLAGES, LLC, as assígnee of GoLD COAST REALTY

INVESTORS, LLC Petition to Compel Appraisal, Select Umpire, and Complaint for Breach of

Contrac! was not filed in violation of the subject insurance policy's post loss obligation(s)

conditions.

6. Thar the Court reserves, for its determination, the issues of Petitioner's

entitlement to and the asrount of attomey's fees, costs and prejudgment interest;

7. Thar cLLiB VILLAGES, LLC, as assignee of GoLD COAST REALTY

INVESTORS, LLC is not in violatíon of any post loss obligation(s); and

WHEREFORE, Petitioner respectfi:lly requests judgment as set forth herein from

Respondent, including attorney's fees, costs, and prejudgment interest. Petitioner further

demands a trial by jury on all issues so tiable and such other relief as this Cor¡rt decms just and

propef.

Respectfrrlly submitted ,nt i I - day of October,2010'

?77 South Harbour Island BoulevardSuite 950Tanpa, FL 33602Tolephone: (81 3) 229-1000Facsimile: (813)229'3692Attomey for Plaintiff

Florida Ba¡Nò: 061735




Com it tørciat Prop erty Ð ecla ibii ons Eq-

GoveragesandLlmitsProvlded

Company: Westchester Surplus Lines lnsurance Company

wllh Companv fl See attached $qhq!!q!e Ceg?

¡rsuranco ¡t Described l4aüorr Apdles Only For Coverages F.grW¡lgh A U,gl!Ol Uablllty.J-s Sttot,n

gf 0,000. per oúTurenceãxcept 5Yo of total insurable values forWlndstorm/Hall. (Soe soparato

ú S"" Multiple Deduc¡bte Form 0 Soe Windstorm or Hail % Deduclible FormE See Hunlcane % Daductiblo

Formslnformation

Form CPd2 (6/02)Page 1 of 1




a)l tót

Page I of4

McGoy, Chris

Frot¡ti dweloh.merld0S@lnsutetnafl'nat

sent: FrldsY, January 06,2006 4:09 PM

To¡ McCoY. Chris

Cc: ' blake@qlnsu¡€nce.net

Subject: Gotd Goast Realty lhvoslors' Olaim CAT 64019023

Chris: attaohcd ie the lirst of buildíngs aud their associatetl value. À list of rents will follow in a sepratc

e-mail. 'Would you sec if ibís i¡fonñatioú is clear, and estimats a date tho iusr¡red could expect a claim

payrrent, Becaúsc tho cmergency çtqryses uc in ¡he ernergency phasg wllcn can wa hope to get an

ädvanc" or ¿ check for this. Please advisq ¿¡d ¡ent info follows.Thanks for your hoþ. 'Vi¡hat

is Zota doing? Best ragards, Denise Welch

ADDRESSPREMISENUMBER

BUILDINGNUiJ[BER

LOCATION SCHEDULE

Gold Goast Realty Building llst, location.and values.

001

001

001

001

001

001

001 f 599 NW 13 St., Boca Raton, FL 33486

1575 NW 13 $1., Boca Raton, FL 33486

4€ÉS NW 1A SL, Boca Raton, FL 334861 557

1625 NW 13 St., Boca Raton, FL 33486

1851 NW 13 St., Bocô Raton, FL 03486

1675 NW 19 St., Boca Raton, FL 33486

002

003

004

005

006




-ló3l+vl:¿6v5--:l:¿-i-3|¿-l-o4t.lzb|b3l-L¡.t9gÈ-|:lã|.\.lJ001

Page 2 of4

001

007 1701 NW13SL,BocaRaton,FL33466

008 1601 NW 13 Sl, Boæ Raton, F133486

l lt<t1rô,^â,




!J. ¡9. ¿vvJ ¿4r W-

PROPERTY & ININDSTARM COVERAGE

lnsured:

lnsurance Canie¡:

PolicyTerm:

Gold Coast RealtY lnvestors, LLC

Ace lnsurance Cornpany, A.M. Best Rated þ+ X/) Non.Admitted

0s/2sl200 5 To 08/25/200ô

VALUAfTON

CAUSE OFf,OSS FORM U$EÐ;

Speclal Form: Provides côverage against All Risk of dlrect physicalloss or damage, exceptthose perils that are specificãlly excluded in the policy.

you.ry -.FÉ{[li]- a:Þa!!ÈJE,i.f,í¡YAri'ffåi*:ËscyPn..¡,

OOf OO1BUILDING

001 001 coNTENfS

001 001 BI/EE

W i'äf¿,- o.sc''Pt'o'',

001 a02 BUILDING

001 002 coN'rENTs

001 002 BI/EE

'ffie,i,trfar. gÊsoftFlr?{OO1 OO3 BUILDING

001 003 CoNTENTS

001 003 BuEE

i,//offq.ryåïåu* ?esc'rlj.olOO4 BUILDING

OO4 CONTENTS

OO4 BUEE

'f' ,ä üirh oEscR'P'toN

OOI OO5 BUILDING

001 005 0oNTENTS

$60s,318 100% $5,000

$120,000 100ù/0 $s.000

$108,000 l/Ê MoNTHLY

Attou r Fgtlifr- p-EpucnBLE

$830,845 100% $5,000

$120,000 10070, $5,000

$108,000 1/0 MONÍHLY ,"

AitouNr Fgf#^f DEoucrB¿E .-'$561.566 100o/o $5'000 ¿

$120,000 looo/o $5,000

$108,000 1/6 MoNTHLY

4yoylr - ?ii:!# Dgqucrj?,.e-

$044,235 100Y" $S,000

$120,000 1007o $5,000

$108,000 li6 MoNTHLY

AGV

Agvrl- -. ËE#Lt-i*- DED-¡ITBLE- -,.. vg-grro¡'-.

$595,212 10oo/o' $5,000 RCV

$120,000 100o/o $5,000 ACV

RCV

ACV

UA,LUANÔN

ROV

AQV

RCV

VALUAÏION

UALUAI'ON

001

001

001

RCV

ACV

tl6t2.0î6




OO1 OO5 BUEE $108,000 1/6 MONTHLY

,i,ä{¿, ,f,iflfe, grlc-gPlo.L. " - ^Mount ¡3ö}þ-DEoÜortBLÉ- v+uunor

OO1 006 BUILDING $594,ô34 100% $5.000

001 . 006 CoNTENTS $120,000 100% $5'000

001 006 BI/EE $108,000 1/6 MONTHLY

001 aoz BulLDlNo $888,887 ß0% $6.000

00r aol ooNIENTS $120,000 1000/" $õ,000

001 0a7 BUEE $108,000 1/6 MONTHLY

,|,ffi!¿.^ftliie^

DÉEcR,pno¡, Altounr Fggrä* aEDt)cnaLE vALuAnoN

RCV

ACV

RCV

ACV

,i,iffi* nitå-.r ?E:oRjPrIo{ -ÃryNt FgËåt'Ë- o?:YBn - vALUIYN-

OOI OO8 BUILDING $139,303 1oo% $5,ooo

001 008 CoNTENTS $30,000 100% $5,000

Total I nsured values: S6f€s$€0-6/b $6, 576,000

* Namod Hunicano Deductible 5%; Atl OtherWind an<l Hail Deductrble 5%

Datc: 8f22/05

RCV

ACV




Policy Declarations Eq_

IHSUNTD & MAILING ADDRESS

Fred DsFalcoNW Boca Raton Blvd.fÊ200

, - oel2ÃmAS 12ú1 A. M. Stendard Tlme At Named lnsurede Address

NSURING GOMPA}JY

troduceis Name & Address:

Westchester SurPlus Llneslnsurance ComPanY

]ISYS GOMIj|ERCIAL INõURANCE¡ROKERAGEI99WAIERSTREETISTH FLOOR

'IEWYORK. NY10038

rroducer No: 419SlW

j1 f.ì{:;r'- r .ï :iii!INSURED 8Y SURPLUS LINES

DO NOT HAVE THE PROTEiTIONFLORIDA INSURANCE G UARANTY

ACTTOTHE ÐffENTOFANY R¡GHT OFFOR THE OBLIGATION OF A¡.I

INSOLVENT UNL¡CENSED INSURER.

ïr::îìi cli't ! iil tÌ: ¡i::. tiìli':::'-:it/T:U.:"

ATTACHED FORMS

SLPO (4/03)




Common Polícy D ecløratìons

Company Namo: IVcstch€súer Surplus Ltnes fnsnr¡nce CompanySYM: FS Poliry ID; I)36054335 001

Nsrncd In$ncd & lvfailing Ad<kess

I

Prodocet's Name & Address

ACTI¡SA

@

GoId Co¡st Resltt¡Attu XÏed.DeFrlco3299 Nfï Boca R¡to¡ Btvd. #200BocrReton ELft431

General Policylnformation

BROKARAGEl99WAIERSTNAET2mtrr:LooR¡mfsYoaK Nv1003841g$rr-NE\V

fl months

Busi¡essDcscription: ApartmentCompler

Wbcn Coverale Bogins: A8n4f2g05 12¡014.M. Sandard Timo atNamedl¡uured's Address

TVhcnr Covtrage Ends: 08n412øO6 t2:01 å,.1v[. Standard Timo atNar¡ed Insrued's Ad&ess

Il retnn for lbe payment of the premluq ard subJect to all the terms 9f lhls pollc¡ rve

ryree wlth you to provlde the l¡suranco as st¡ted ln thls pollcy.

The promium for thís polioy ís indícatcd bclow next to thû aþplicable Covcrage Porm(s).

Polioylcriod:

Coverage Fgrm

Comnerciel Pron erty Caverage Part

TotalPremium:

Minimrun F¿med.hcrnium:..

P¡eníwn

3 68"599.00

$ , , .-68.588.00

$ ._ _.,:1,7.1¿7.09.......

$

$

s$

ss

$

$

Attached Formslnformatlon

SeeForms Schedule trfs2

Counhroigned At:

Date:

AuthorizedAgent:

Thesc Declaralions together rulth the Coverzge Dcclaralfons, Comnon Pollqr Condttlons ¡ndCovcr:rge Çondlllons (if applicablc). Çolcrngc l'orm(sl antl Fornts :rnd Er¡tlorsclr¡cnls. ll¡n.r'. issr¡cd¡!r I',r't¡t :r p:¡rt lhere¡¡l'. rrrrtt¡rlt.tr lltr. rlrrrrc ttrr¡trJrlr,.'l lt,'lir¡.

Autho.rlzationlnformatÍon




Forms Schedule

PolÍcy Period

all CoverageParts

GommercialProperty

12¡01 lt il. Slandad Û¡eÂt Na¡red l¡rsu¡ed's Address

l2lol A" M. Stsndard Tkne Al l,lamed lnsuæds Addross

Company: Westchester Surplus Lines lnSurance GompanysYM: FS Pollcy lÐ: D3605¿LIÌ5 001

When Coverage Begìns:

When Coverage Ends:0a241200508i2412006

BB.5W5sa (f 2195) - Gornmon Poli{ffiItfA-808255 (09/04) - ACE Property & Gasualty Clalms Dlrectory

. Fprm No. and-Qe.Sg;tlPïonCPdz (061021 - Gommerclal Proporty DeclarationsCPeed2 (06f04) - Earlhquaka Endorsemont DeclarallonscPlÊd2 (06t04) - Flood Endorsemont DeclarationsCP 00 90 (07/88) - Comrnerclal Propsrty CóndltlonscP 00 10 P4fo2, - Bultdlng and Personal Property Coverage-Form

CP 00 32 (oeroz¡ - Business lncome (Wlthout Exfa Expense) Coverage FormCP {0 30 (04102) - Gauses of Loss - Speclal FormcP t0 45 f08r99) - Ealhquake and Volcanlc Eruptfon Endorssment (Sub-LÍmft Form)CP l0 65 (f 0100) - Flood govsrage EndorsementACE083 (05t05) - Occurrence Llmlt of Llability EndorsementACÉ061 $AOq -Asbestos Materlal EndorsementACE0206 (07//02r - Deflnltion of OccurrencsBB-10320 (0{101} - Servtce of Sult Endorsement

^cEozlo{02/03} - Nuclear, chemlcal end Biotoglcal Exctuslon Endorsement

AtL-f 0750 (t 0/01 ) - Terro rlsn¡ E¡tcluslon Endorse¡nentTRlAlS (0f/æ) - PollcyholderDlsclosure Notice of Terror'lsm Insurance Goverage

CC-3R19 Prßn - ACE (A) - llrlortgasee¡L 02 55 çOttOZ¡ - Florid¡ Changes 'Gancellatlon and Nonrenewa!lL 00 t7 (1ft98) - Gommon Policy GortdltlonsLO-5S23g (02105) - Slgnature Endorsement




UA' LO' ¿OUJ L¿. JL

ffi¡¡¡psron/l/ cova1-g.lnsured:

lnsurancg Canien

PolícyTerm:

Gold Coast RealtY lnvestors, LLC

AcelnsumnceCompany,A.M.BestRated(A+)C/)Non-Admltted

osl 25 t 2005 To 08/25/2006

Speclal Form: provldgs coverage against All Risk of dlrect physicallqes. or damage, exoept

those perifs that are speciflcally excluded in the policy'

PREM, ALþG,r\¿.r4tgER NUMEER-

001 001

001 001

001 001

PflëßN. BLþG.,VUÀ,BEñ NUTIBÉ,R

001 002

001 002

001 002

OESCR,FNON fngyqr., .. t3ffËü- ÞEDUçnaL?-_.

$€05,9181000/o $5,000

'$tzo,ooo 'loo% $5,ooo

$108,000 1/6 MONTHLY

UALUANON

EUILDINGCONTENTS

BUEE

DESCR¡IPNON

RCV

ACV

RCV

ACV

í,i.Té" .Tlff¿, Dis-oR'Pï9N

OOl OO3 BUILDING

001 003 CONTEÍ\ffS

001 003 BuEE

,[,ffi{+ r1"if* TslT'P7'o/\:OO1 OO4 BUILDING

001 004 0oNTENTS

OOlOO4 BUEE

í,ßrÉtryurjËs oEscR'F'oÀ'

OO5 BUILDING

OO5 CONTENTS

yuyl.-- Ë&Ë oEDuênBLE - v'lu*nolt

$830,845 1oO% $5,ooo Rcv

$120,000 1oo%. $5,000 Acv

$108,000 1/6 MoNrHLf ,a

f¡,toul{t ËüY^* wD:r!nBLl-;"- -vALyAnoN ,.$561,s66 100% $5,000 ,

$120,000 100o¿ $5,000

$10Ê,ooo 116 MONTHLY

!!a:!r - -.;.ÊäX-:fr.DãZTJIå¿'.--

$644,235 1000/o $s,000

$120,000 10070 $5,000

$108,000 1/6 MONTHLY

AW,uNr. iHätF" DEDu.cnsLE

$595.212 10070' $5.000

$120,000 100a/o $5'000

BUILDING

GONTEÌ{TS

BUEE

UALUAflAN

RCV

ACV

uALuÃnoN

001

001

RCV

ACV

tJ6t2006




ayl8l2øa! '12:32

001 005 BI/EE

,lW-'fffi*ÞËsc'w!

OO1 006 BUILDING

001 006 CoNTENTS

001 006 Bl/ËE

,itr{*,f,H"?, D'ic''pïtoJ¡r

OO7 BUILDING

OO7 CONTENTS

OO7 BUEE

ffi. r?;fPfu. DËsgR'Pr'?¡,

OOl OO8 BUILD¡NG

001 008 GoNTENTS

ryY - *#lYt* ?E,uort*t{. . .ufl.vAnor -

$108,000 . f/6 MONTHLY

^t¿ounr

t?iÊmDÉotJarqt Ê

$694,634 100% $5.000

$120,000 100oio S0,000

$108,000 1/6 MoNTHLY

$888,887 lo0% s5.000

$120,000 100% $5,000

$1o8,ooo 'tr6 MoNTHLY

$139,303 100% $5,000

$30,000 1000/o $5,000

vÁruAllorÙ

001

00r

001

RCV

ACV

RCV

ACV

RGV

ACV

AnounÍ 3i#!î; DEDUcnsLE 'uAurtno'

Total tnsured Values: $er4€e0o0-'slb $6,õ76,0þ0

* Narned Hunicane Deductible 5%;AtlOtherWind and Hall Deduct¡ble 5%

Date: 8122105




øyl ló12w5 l¿,71 ta\JrzoQrl

Page I of4

McCoy, Chris

From: dweloh.rnerid0S@¡nsuremalf.netSent: Frldsy. January 06, 2006 4:09 PM

To: McCoY,Chds

Gc: blake@qinsurance,net

Subjec0 Gold Coaet Realty lnvestors, Claim CAT 54019023

Chris: attached is the list of buildiugs aud theb assqtiâted value. A list of rmts will follow in a sqparate

c-mail, \Mould you sec if tbis information is clear, and estimato a datetl¡c i¡sured could expoct a claim

paynent. Becausc tho emergency crçet¡ses are i¡ the emergency phase, when canw€ hopo to get utadvance ot achcck for this, Please advisq and rent ìnfo follows.Thanks for your hcþ. 'What is Zcta doing? Besttegards, Denise Welcb.

LOCATION SCHEDULE

001

Gold Goast Realty Buildlng líst, location and values.

PREMISE BUILDING ADDRESS.NUMBER NUIIIIBER

001 1599 NW 10 St, Booa Raton, FL33466

OO2 1575 NW 13 St., Boca Raton, FL 33486

003 ... {€F+ NW 13 St., Boca Raton, FL 334881557

004 1625 NW 13 St., Boca Raton, FL 33486

005 1651 tW 13 St., Boca Raton, FL 93486

006 1675 NW 13 SL, Boca Raton, FL 33486

001

001

001

001

001




UJI LUt LúUJ L1. ¿-

001

Page 2 of4

007 1701 NW 13 St., BocaRaton. FL33486

0OB 1601 NW 13 Et., Boça Raton, FL 33486001

I lt<|1r},^r.




Com ù íerc¡al P ro p erty D e cl a r*ii o n s BA.Company: Westchester Surplus Lines lnsuranCe Gompany

svn¡j rsPolicy lD: D36054335 0ol

GovemgesandLlmitsProvlded

Schedule on flle Ud{.h

i*utan"" À Oescdbed locatlon np-Olo Ody r"r Covorases Foj[hlglt A {mil

$10,000. psroccur¡enc" o*pt S* of tolal insurable vatues forWhdstorn/$X. (Sea separate

SpecialDeductibleProvisions

GoverageOptions:

n S"" ¡vlãnøs Deduclble form E SeeWìndstorm orHall % DeductibteFo¡¡nEi S"e Hurricane 7o Deducliblo

lnformatlon

Form CPdZ16lD2lPage 1 of 1




Policy Declarations ET-

MAILING ADDRE$S

NW Boca Raton Blvd. f200

l2$l A. M. Standard TIme At Named tnsu¡ede MdÞss

G¡ rpñc c.rtr¿p¡uv)roducet's

Name & Address:

Westchester $urPlus Lineslnsurance GomPanY

tlsyscomm ERcfAt- lNs uRAt'lcEIROKERÂGEIggWATERSTREËTIETH FLOOR{EWYORK NYIOOss

troducerNo: 41953W

Tr::.q !Î (:::¡.'tü

/ !:ir;}l liii Gi'.

ll:'i'-:iì,(:$i:'

INSURED BYSURPLUS LINESDO NOT HAVETHE PROTECTION

FLORTDA INSURANCE GUARANTYACT TOTHE EXTENTOFAT.IY RIGHT OF

FORTHE OBLIGATION OF Al'lINSOLVENT UNLICENSED ¡NSURER.

ATTACHED FORMS

SLPD (4/03)




ÄcEusÄ.

Cornm ou P olìcY D ecl,arøtíons

Conpany Namc: WestcLesúer Surplus Llaes Insura¡ce CompanySYM: FS Policy ID: D36054335 001

Namcd Insu¡eil & lvfailing Addrcss P¡oducer's Name & Address

coi*coAttn: Iteit.De¡alôo BROIffi.R.AGE

3299 $NV Boca R¡to¡ Blvd. #200 f99 WAÎER SIREEtr

Boc¡R¡to¡ trL33431 I&THFLOORNEWYOBK NlrlOG}841953'W-NEW

General Policylnformation

PolíryPeriod: 12 months

BusinessDescriptíoa: AparrmentCompler

'Wlecr CoverageBcgiru: A8n4nf05 12:01 A.M. St¿nda¡dTímeatNarnedlnsured's Àddress

'rühe,aCovcrageEnds: 0A2ü2006 12:01 Â.lW Standard Tims etNamed Insr¡red's Ad&esg

I¡ re turn for the pqymcnt of the premtün, and subject 1o all tbe terms pf tbls pollcy, rve

agree rvtth you to provide the lnsura¡ce as st¡ted ln tbis pollcy'

The prcmium for this poticy is indicatcd belowncxt to thc applicablc CoverageForm(s).

CoverageFgrm

ComJmjrcíll4ongTtvCovelasePaf-. --.- ----,

'fotalPremluml

Minim¡m Esmedlrsmium:-

Prentwtt

$ ___ 6gp8{.oo

$

$-$

$ _. . j9rs88.9.0.

... $ - i*.r-17,1,i7.00."

$

$

$

$

Attached Formslnfor¡nation SeeForms Schedule C?ß2

Countersiped At:

Date:

AuthodzcdAgent:

These Dect¡r¡tions together tvith thc Cover¡ge l)cctoretions, Common Poù'cy Coudltions and

Cor.crnge Conrlillons (if applleahle¡. Covcragc tbrn{s) and Fornts ¡u¡d Ertdorscltrt'nlt. if lnv. itsncrl

"' l.¡rr,r:r ¡r:rr'l llterclrl" rûllllll¡'¡t'tltt':rlrttrr trttltrlrr:"rl ltr¡li¡'r'

Autho.rlzationlnformation




t..

Eañh qu ake En dorsement D ecla rafions

Company: Westchester Surqlus Lines lnsurance GompanysVl¡, ÉS PolicY lD: D36054335 Ooi

____rHE_F€È¡Su,NescHEDr¡rE-pRCIytnF$.T IÞPLEMENIARY lIrFg,R+!4I¡-9=N T.oJ5=l{¡Sgwlrl{ TllE ...

eanrrtouexr AND VOLGANIC ERUPT¡ON ENDORSEMENT (SUB-LIMIT FORM)

Llrnlts oflnsurance

lnformallon

Optlon A or B

applies (aslndlcated bY an X)

Form CPeed2 (6/04)Page 1 ofZ

CovertO Locations for Earthguake and Volcanlc Eruption are the same as the Covered

Localions shown in the Commercial Proporly Declarat¡ons, subject to thefollowing

@ covered for Earthquake and Volcanic

CovuiJA property and Coverages for Earthquake and Volcanic-E¡¡ption are the samo as

rfré-C"Jà*UþroÉ"rty and Covenges shown in the Commercial P.ronerty-!e9la3!l,ons,

"uo¡ãAto the lefins óf tne earttrquake arrd Volcanic Eruptlon Endo¡sementand the

Occurrence & Annual Aggregate Llmits ;

Earthguake and Volcanlc Eruptlon Umlts of lnsurance areAnnual AggregSte Llmlt-s.-

õ-;ËäËU,"¡iOf tntur** Prövisionsln the Earlhguake andVotcanlc Eruptlon Endorsement')

The Earfhquake and Votcantc Eruptton llmlÇ lndlcated ln o--ptlon Aor B below, ls-

iiã* òt áriC ¡ncluded ln the Umlt of tnsurance whlch applfe¡ to othor Qo, vered

i.uu"" of Loss under the Causes of Loss- $nec!a! Forry.- fnq e$¡quake and- -Volcanic

Eruptlon ltmit Is not a separate or addltlonal Llmlt of lnsurance.

EIõpUon À -Full LlmltF"ü;ãil" ãnd volcanio Eruplon lscoveredfor lhe ymlLimtt of l¡sy111g:FTLllll"öffi![iá Èlãp"rrv óJ"làritonr wlrfch applies to other Coræred Causes of Loss under

rf,ä õá*"s of Lðss. Spedal Form, subJect to the follorlng exceplions: ' ,' . : :

$5,flOO,O00 por ooeÐrenoo and annual aggregate

Thls Llmlt does not apply separatel/ to lhe Prômises, Locallons, Corer-ed fropqrtY or Coiorages

tüie¿ iil, trre most wå wn pay br ät nss or damage to the tndicsted co¡ered Property/Gorerages

äi t¡ä Ëì"r¡r"" and Locaüónõ [sted, subject lo all other applicable polhy provlslons.




Earthquake Endorsement Declaratlons

DeductiblaOne of ll¡efrllodngoptlono wlll applY as

no enlry appærs,Deducübbdptun Intho@mmerddProperty Dedaraüoneapp[es to Earüquako'

The Deductible provislons apply to each

propsrty at each bullding and personal properly in the open.

[l Fxed Dollar Deductible (The followlng paragraphs lnfonn CP 1045 do notapply:G.2.a.(2), G.2.a.(4), G.2.b.,G.Z.c., G.2-d. e H'

The deductible Amount ls $50.000 pôr occrrrrencâ

Appllcable to Sprinkler Leakage only: No

"lnoluding Masonry Veneef Option:

lncråased Annuat Aggregate Limlt Option:

Form CPeed2 (6/04)Paga ?. of 2




Flood Endorsement Decl arations

Company: Westchester $urqlug Lines lnsurance GompanySYM: Fs PollcY lD: D36054335 001

@

PROV¡DES SUPPLEMENTARY INFORMANONTO BE USEDWTH THE

ffithe iame as the covcred Locations shown In the commerclal

D

t tto Ftood coverage ls nrovt{9! underthis endorsementfor Locations lgcale4YltltiE

fi! llffã*mõ NF¡p Zänesi4 nr through A3O, AE, AH, Ao,AR, 499' V' V1 through V-30

ANDVE

ffiand Coverages forFlood_are.the same aslhE.Cove¡ed Proporly and

ñö;;ñã"ítln Commgrðia1e¡ooprtf oecqr,llo¡s, sublectto theterms of the Flood

lnsurance

lnformation

Optì,on A or B'applies (as -'--indkaled bY

an X)

Form CPfed2 (6/04)Page 1 of 2

Occunence & Annualffi Ag gregate Umlts. {Refar to the Llm lt- Of ln¡urance

Þrñ¡"¡ons ln tho Flood GoverigeEndorss¡nentforan explanatlonf

The Flood ltmiÇ lndlcated ln optlon,A or B below, rs part of and lncluded ln the limlt of

¡üi,i,.-r,*rtr¡ätr appl¡es to oiherGovered Gauses of Loss underthe Gauses of Loss'""$;ht ñ;m. ihe Flood ltmtt ls not a separate or addltlonal Llmlt of lnsurance.

l-l ootlon A. -Full um¡t (@insuranca u{Ùx¡ruonr r ar¡y' l|l .rr.t.tPlrrAr¿e¡u euverolre, e¡,

ffiöË-;;re¿ ior tns same Llmit of lnsuance shou4 þ the Cornmercial Propefibãã".tr"r,Jurnrcn apffàs to ottrer covered Gauses of Loss under he Causes of !oss-spt.¡tl Form, subject to thofollo¡ving excepüons:

@ ¡¡e applicable Gorærage Forn applies)

itto co"insurance optíon applíes)

$2,000,000 peroccurenæ and annuaf aggregate

Thís Umil does not appty separaldy !o the Premlses, Loca[ons, Govergd^Propgrly^or Coverages llsted'

í'¡" u* m*t *" u¡¡¡ ôäi forill losíof damage to lhe lndicated Covered Properly/Coverages at he

;;t*rËe" à'rd Locatli¡nð ltsted, subJect to all ottrer apptlcabte pollcy provlslons'




I

Flood Endorsement ÐeclaratÍons

(lf rce¡rVyappe*s. ltPDedt¡cÍt¡lo shov¡n ln Ûte

Corn¡usclat PttæÛDedarallone ap$er bsood.)

Businesslncome FloodDeductible

SpecialP¡ovìslons(appllcablo lfhdlcated by an X)

means: (a) each

"mAure;(b) yeur bushoss persoq4 propôP or-propeÉ¡i of others In each bull¡llng or struc{tre;

or (c) propeÉy h tho opan at each Covered Locallon.

Form CPfed2 {6/04)Paoe ?, of 2

The follorrring Deducdble wlll apply to all coverages unless a separate deductible ls

shown below for Business lncome:

me OeãucUU¡e ¡nrount ls $250,000 per Building, Flood excess of available NFIP wltether

purchases or not $2õ0,000 per Building, Personal Property Flood excess of available

NFIP whether Purdtased or not.Thls Deductibþ wlllapply separateþ to each'Occurence.

lf the above deductlble is a percentage, it is of the total lnsunable value

at all Govered Locatlons involved ln the loss; as of lhe date of Loss.

The follou¡ins deduclible will apply separately to Buslness lncome-

respãaf ne--ecoverageprovldedunderthis'endorsement'thsappllcabie to physicaldamage to property shall also apply to Business lnoome and Extra

expense.li the Dedudibþ ls stated as a percentage arnount, lt wlll lnclude tho appllcablepercenfage of the insured values for Business lncorne and Extra Expense at all localions

72 hour waiting period in Sectlon D.5.a- does not apply'

Underlylng NFIP lnsuranco WaiverApplles to tocations: NONE




i

ACEProperfy & Casuaþ Claims Directory

Claim Offce Locatíon PrimarSr Fax Numbers

ACE'\l/estcbesterSpecialty &oup

P.O.Box 100008Roswell, GA 30077

Pax: 678.?95.4095888.763.7999

Bachup Fax:678.795.4081

888.982.2f33

F¡ge I of IFtyrì \l.i.r,t'q:S.î llf I fiJ ¡




rL P 001 01 04

U.S. TREASURY DEPARTMENT'S OFFICEOF FOREIGN

ASSETS GONTROL (.'OFAC')^ADVISORY NOTICE TO POLICYHOLDERS

No coverage ís provlded by !!¡s Policyholder Nolice nor can it be conshleA þ. rynþo any pmvbions of your pol:

i;iv;ù"f";iã

íru¿ your óot¡cy and räüaw your Declaratlons page tur complete informalion on lhe covenages )ou

are provided.

This Nogce provldes lnfuimation cpr¡cemlng possible impact on your'lnsurance ôoverags due to dlrecllvss lssued

úV Of¡C. Pieaso ¡s¡d lhls Notlce carefully'

The o,ffice of Forelgn Asssts contml(oF^ç) admlnisters and enforces sancllons pollcy, based on Presld6nllal

åäã¡"iáíf"is åi.naUäna¡ emorgenq/. OFaC has tdentilied and listod numerous:

. Forelgnagents;

a Front orgpnizatlons; 'o Terrorlsts;o Tenorlst orgar¡lzations; and

o Nafcotlcs kafflckors:

as ,soeclally Deslgnated Nallonals and Blocked Persons'. Thls ll"t ca4 be localed m lhe Unlted States Treasury's

web Jite - tritp/¡\¡,r¡r. þeas.gov/ofac.

ln acc¡rdance with OFAG regulations,-if it ls detarmined lhal.¡ou or any.other insured, or any.person- or enlity

å,"frñóìËîuñdùror iñ¡iiñ.ùr"n."'has vrotated u.s. sanc{óns hw oi ls a specially Desþnated Nallonal and

Blocked person, as loenuñ'ö uyõrÁc, t¡¡r lnsufance wir bs cpnsÍdered a ¡locrsd or fiozen conlract and all

;;;ffiË;iù.,ri ¡n*rrunä'ãJúnm"aãíety subleot to oF{c. whon an i¡æurance polloy ls considered to bo such

a btocked or frozon conii""ilrio payments'nor iremlum rofunds rnay be mads wilhoul authorlzalion tom oFAC.

ôrrrãiiiñtatloß on thepremiumi año pavments also apply'

tL P 00t 01 04 @ ISO ProPortios, lnc., 2004 PaEe I of 1




'9*"

Questions About Your lnsurance?

Anslrers to quesfiono about your lnsuranae, drveøge lnformatlon, or assistar¡oe ln resoMng

*mpf"¡nt" cän ¡e obtained by callhrg ACE USA, Custonrer Support Servûoe Dopartnent atl-800€52-4462.

^t!.6)ø0(r1/s6lPüt h u-s-A.




JMMERCIAL PROPERTY

GOMMERGIAL PROPERTYGONDITIONS

Thts Coverace part h subject to the following condltlons, lhe Common Pollcy Conditions and appllcable Loss

Cãn¿¡t¡ons añd Ældl$onal Côndlt¡ons in GommercialProperty Coveraga Forms.

GoNGEALMENT, !¡¡SREPRESENTATIoN OR F. NO BENEFIrTO BAILEE

Thls Coverage Part is vold ln any case 9f fau! byvtxr as it relàtss to fhfs Coverage Psrt at any limo'it ¡s also void if you or any othor lnsurêd, at anytlnre, lntentionallyconceal or mlsrepresonl a mate-rial facl concemíng:

l. Thls Coverage Parl;

2. The Covgred ProperlY;

3, Your.lnterest ln tha CoveredPropert¡r¡ or

4, A clalm under this Coverage Part

B. CONTROLOFPROPERIYAnv acl or neqloct of any person other than you

beyond your dl-reclion or conlrol will not affect lhls

lnsurance.

The breach of any conditlrrn of lhls Coverage Partai añv onô or mciie locauons wlll not affect cover-

age át any locatlon where, at lha llma.of loss or

dãmage. the breach of condítion does not axisl

c. rNsuRANcE UNDER TVUO OR MORE GOVER'AGES

lf two or more of lhfs poliq/s covsfages apply to

lhe sama bss or damage, we will not pay mora

lhan the acfuql amount of lhe loss ø damage'D. LEGALACTION AGATNST US

No ons may Mng a legat acllon agalnst us under

his Coverage Part unloss:

l. There has been tull complianco with all of tholerms of lhls Coverage Part; and

2.'Ths aclton ls brought wllhin 2 years añer thodate on which tho dhect physical ìoss or dem-age ocoufred.

E, LIBERALIZATION

lf we adopt any revlslon that would broaden thecoveruge 'undei Urts Goveroge Part.wllÌrout 'addi-

ttonal p.-remium wtthin zt5 dayC pr'lor lo or du-rhg the

policy'perbd. lhe broadenédcoverage wlll lmmo-

'diateiy-appty to lhls Goverage Part

custody of Covered ProperlY willinsurance.

from lhls

G. OTHERINSURANCE

l. You may have other fnsurance subJect to lhosamô plan. terms, condilions ônd provlsions aslhe lnsuranco under thls Covarago Pert. lf youdo. wo will pay our share of lhe covered loçs ordamago. Our share b lhe poporllon lhat the

appllcable Ll¡r¡it of lnsuranca under thls CoveÊage Psrl besrs lo the Llmlls of lnsuranco of alllnsuranco coverlng on the sams bas¡s-

2. lf lhere ls othar'tnsurance coverlng the sameloss or damage, other lhan lhat'descdbed ln 1.above, wa wlll pay only for the srnount of cov-ered loss or damage ln excess of lhe amountdr¡e from lhat olher lnsurance, whelher you cancollsc-t on lt or not- But uro wtll not pay mofelhan the appllcable Llmlt of lnsurance.

H. POLICY PERIOD, COVËRAoE TERRTTORY

Under th¡s Coverage Parh

l. We cover loss or damage commenchg;

a. Duhg lhe policy perlod shourn in lho

Dedarafpns; andb. Withln lhe@verage terltory.

2, The coverage lerítory ts:

a. The Unlted Stales of AmeÍca (induding ltstslitorios and possesslons);

b. Puerlo Rlco¡ and

c. Canada.

cP 00 90 07 88 Copyrlght, tSO Commercial Risk Servhes, lnc., '1983, 1987 Page I of 2 tr




tffiÏrTfãrJ3år$"üi" o " REcovERY

iffi gJ"în:lî"å:?if, [i:i"li.'HöH3"i-'iÉä;"å:å,ä;'ääääãJ.r'm"n$:f .P-':ig¡tillÎ

l. Prior to a tr¡ss'..' your Coversd Properly or

Covered lncome.

2. Ftlle¡ a loss to your Covered foPqfy,or qoY:-ered lncome onlylf, at üme of loss. lha¡ parry ls

one of lhefollowing:

. a. Someone lnsured bty lhis insurance;

b- Abuslnossflm:(1) Owned or controlled bY You; or

(2) That owns or controls You; or

ni.il'ii#l,i*x¡n'*+:ro;l"Hil-.ãËdõ usio-ne"*t"$9I

ol:

ä; ö såa¡rä ourtislÞ 19-n1t.::¡# Ë riËfffi:'Ëyt *.1-f.* warve vour rþhb

another lnwilhg:c. Yourtenant

Thþ wilt not restrict your lnsurance'

trPage2ol2 Copyrlght, ISO Cornmercial Risk Services' lnc" 1983' 1987 cP 00 90 07 88




OMMERG'AL PROPERTYcP 00 l0 04 02

BUILDING AND PERSONAL

PROPERTY COVERAGE FORMVariousprovtsÍonslnthis.pollcyreslrldcoverage'Readtheenlire'pollcycarefullytodetermlnerlghb'duliosandwhal is a'nd is not coveled'

o ¿aræ ra rha Namad rnsured shown ln tho Declaralions. The words

.råi:iË"ääï.ij;;åfé; to the Gómpan!' provldins lhis insuranco'

otherwordsandphrassgthatappearinquotallonmarkshavespecialmeaning.ReferloSecllonH..Deflnltlons.

A. Govcrage

Ws will pay for diroot physlcal fcss 9!-o¡-{11a9eto

öõåiä,íÞ?operty at the premlses descrlbed in the

ñ;ÉatiÑî;u-sø uv ór resultins from anv Cov-

ered Gause of Læs-

{. Covered ProPertY

Covsred Propert¡ as used ln.lhis Goverage

ü'{';;d* itJ'úpu oJ p.I99'tv.*""i:bed rn

ihË''$;ibn, lr.' äo ¡rrilte¿ ln A2u P.toparly

Ñä õ;Ë;¿li' il âüm¡t or lnsurance ls.stnwn fn

it e oecfaratiäns for lhat typo of property'

' a. Butldlng, meaning tho buildlng or.stnrctcre

desc¡lbeC h lhe Dedarallons' hcludlng:

(1) Compteted addit¡ons;

(2) Flxtr¡ros, including outdoor lixtures;

(3) PermanentlYlnslallad:

(a) lvlachlneryand(b) ErylPmenl;

(4) Penonal prgpelv ovmed.l¡.pu that ls'-' used to nïàriram or seMce- tho

-bulldlngor struolure or lts premises' inaluding:

(a) Flre exlingu'Fhlng equlPment

(b) Outdoortuinlturq' (c) Floorcovedngs;andfdì Ao¡llancos used for reftþeraling''-' vóñtttung, cooking' dishwashlng or

laundorlng;

(5) lf not covered by oher lnsuránce:

(a) Addilto¡s under conslruclt-m' alþfa-' l¡ons ánd repalrs to the þuilding or

slrudure;

{bl Materlals, equipment, suppllas and' ' temporary slructuros. on or wihin100' feet- of the desorlbed prernbes'used for making additlons, altsra-lions or rePahs to lhe building orslructure.

b, Your Buslnsgs Psrsonal Property locatedtn or on lhe buitdlng descrlbed ln ths Decla¡a-[on" or ln lhe oporr (or'n a vehlcle) withln100 þet of the described premises, co-n'

slstina of lhe followhg unless oÙ¡en¡isosoecìied ln he Declaratlons or on lhe YourÈiiin".s Personal Properly - Separatlon ofCoverage form:

(1) Fumlture and llxtr¡n#;

(2) Machtnery and equiPment;

(3)'Stock';{4) Aìl other personal property owned by you''

andusod lnYanrbusiness;

f5t l¿bor. materlals or servlcos fr¡rnlshedor

'-' ãnanéed by you on personal property ofolhers;

l6t Your use lnleresl as lenant ln lmprove-' ' rnents afid betþrments. lmprovemenlsand bettermenls are flxlures, allerallons'h$lãltatf on8 or addlllons:

(a) Made a parl of lhe bulldlng or slruø' 'ture you óccupy but do not or'r¡n; and

(b) You aoqulred or made at ¡our ax'Psnse but cânnot legally removei

17ì Leased Þerso¡ral properly for which you''-''haüä' a'önlractuàl bs¡iixisibllity lo ln-

Crxe, unloss olhenvise Þrovlded for un'der Personal tloperty of othsrs.

cP 00 10 04 02 @ ISO ProPerties, lnc . 2001 Page I of 't4 O




c. Personal Properfy Of Otht.,.'lhat fs: n. Elecbonlc då --, except as provlded underAddilional Coverages - Eled¡onlc Data.Electronio dala means hformalfon. facts orcompuler programs stored aE or on, createdor uied on, or lransrnltted to or from com-puler

sotrrvare {includings¡ptems anq

?Þbttcatlons software), on hard or floppy disks,CD-ROMs. taoes. drfues. cells. data Þroc'

{1)(2'

ln ¡/our cae. custodY or contol; and

Located ln or on the bulldlng desølbedln the DecJarat¡ons or in lhe open (or ln q

vehfclo) wlthln 100feet of lhe dascr¡bed

premlses.

Hor,vever. oû paynent fur loss of or dam-

"oáto pãrsonä órop"rly of others will only

Uõ for dre accot¡nt of lhe owner of the prop-

CD-ROMs, tapes, drfues, cells, Proc'esslng devices or any other repositøios ofcomputer soffirare which are used withelecbonically conùolled The

2. Property Not Govsred

Covared ProPertY does not lnclude:

a, Accounls.- bills' anenc¡ food stamps orother evidøtces of debt, rriofisy' noles or

securities. tottery tirt'<ets held for sale aro

not securitþs;

b. Animals, urrtess ou¡ned by olhers .and

boarded bv you¡ or if owned by you' only as

"s(ook'while lnslde of buildings;c. Automoblles heH for salo;

d. Bridges, roadways, vralks' pallos or other

Pavod surfacas;

s. Gontraband. or property ln flte course ofitlegat bansPortatlon or trade¡

f. The cost of oxcavallons, grading. backfilllngorfllllng;

o. Foundallons of buildlngs. slruclures, ma- chlnery or bollers lf lheir foundalions are

balow:

(1) The towest basemont foor; or

{2) The surfaca of lhe ground' lf there ls no

basernent;h Lar¡d 0ncludins land on which ths property

ts locaìea¡, çslsr, growlng crops or laurns;

. l. Personal property while alrborne or r¡øter-borne;

j. Bulkùeads, ptlfngs. plers, whanæs ordocks;

k Property thal ls coverod under another--äovãna¡íe fonn of thls o¡ any olher polioy ln

whlct¡ it ls moro speciflcally descrlbed, ex-

àept ør the excels of ttre amount due(ulireürer )ou Gân collect on tt or not) fromlhat olhor lnsurance;

l. Ret¡alnlng walls lhat arE not part of a bulld-Ing;

m. Underground plpes, flues or dralns¡

lions wftich dlrecl lhe operalions and fr¡nc.üons of a cornpuler or devlce connected toít,.whfch enable lhe computer or devlce torùce¡ve, process, store, rslfigve or senddala, Thls Paragraph n., does not apply loyour'stoclC' of prepackaged software.

o. Ths cost to replace or restorè lhe Informa'

llon on valuable papêrs and re¿ords, ln-cludlng lhass whlch exlst as eleclronÍc dala.Valuable papsrs and records lndude butara nol llrnltod to proprletary lnformation,books of ac@unt, deeds, manuscripls, ab-slrac{s, drar,rrlngs and card lndot s)Êteme'Rofsr to lhe Coverage Extenslon for Valu'able Papers And Records (olhor ThanEleclrqnlc Dala) for tirnited coverage for

. valuable papors and records olher lhanlhose whhh exlst as eleclronic dala.

p. Vehlcles or self-propelÞd machlnes (firduding ahcraft or walencrafl) lhal:

(1) Æe lioensed for use on publb roads; or

(2) Æe operated princþally away from thedesøibed premlses.

This paragraph does not aPPIY to:

(a) Vehlcles or selfpropelled machlnes orautos you manufacture, Process orwarsbouse;

(b) Vehlcles or selÊpropetled rnachlnos,-olher lhan autos, you hold for sale;

(c) Rowboate or canoês oul of waler at lhedesc¡lbed premlses; or

(d) Tralers, but only lo lhe extent ptovlded'.-':'for'ln'the Covorage Exlenslon for Non-

otvned Detachsd Tra¡lers.

foregolng descrþtlon of electronlc data,means a set of retated elaclronlc lnstruc.

t)Page 2 oî 14 € ISO Properties. lnc.. 2001 cP 00 10 04 02




q. Th6 followlng poperty v....j outside ofbuildlngs:

(1) Grain, haY, sFaw or other uoPs;

(a) The [ci...-of the actual debris remorralexpense plus lho amount we pay fordirect physical loss or damage o<-ceeds lhe Limit of lnsurance on lheCovered Property lhat has susblnedloss or damage,

(b! The ac¡ual debris removaf erpsnse€xceeds 25ú/o oî the sutrr of nhe da-ductible plus the ar¡iù'riill îhat v"c pcyior <iirect ¡rfrysiuaf loos or Car:ege lo

pr$y.l4pg.n_!he_c(rYÈl'Fgs_El"nsitill the (i_Uv¿¡tliJ Irfùpsriy {hat has sUs--tañeõlæõiEãTãgr--

12ì Fsnc€s. radío or lelevislon anlennas' '{indud!ñg

saiellita rlishes) and their lead-

¡n rr4ring, masls or towers. sþns (otherlhan ..ldn.ç âllâchêd to buildings). lrees,shruÞs or Plants {oihor liratt nsioc[ç" cl(reos, shrubs or farill), all cxccpt as

3. 8ttveted Gaua¡cOlLoscSea apptlcable Causes of Loss Form as shovrnin the Oedaratlons.

4. Additional tóveragèsa. Dsbrls Removal

(1| Gubject to Paragraphs.(3) and (4l,.we' -wlllþay your expenso to remove debrlsof Çavered Properly caused lry or re-

sulting from a Covered tause of Lossfhat occurs during tñe pollcy pericd. Theaxoenses wlll be pairJ onÌy Íf thoy arÈ Yè-

f¡oi¡ed to us in wr¡t¡ng wílhln 180 deys ofihe dat" of dlrect physical loss or dam-age.

(4 Debrls Removal does not apply to costslo:(a) Exwacl "Poltutanls' from land or

waleñ or

. (b) Remove, reslore or replace pollutedland orwater'

.(3) Suble¡t to the exceptlorrs ìn Paragiraph- -(4), the followlng provis-rons apply:

{a} The most we vrfll pay fo1 lhe total. ol' - dkect ph¡ælcal loss or damage plusdeb¡'is romoval expanse ls the Limitof lnsura¡ce apPlbable !o lho Cov-e*d Property llrat tns sustalned lcseor darnage'

(bÌ Sut¡i¿ct lo (a) aboro"lhe amo¡:nl wo'witl pay for deþrls rentovel sxPênsels t¡riiiãd lo 2ã'Ã ol tlts surn cl' lhcCeduct*¡le Plus fhe amount that we,ay for dlrect physlcal lqçe or dant-âqã to lho Covere'd Property lhat h¿srustahed loð$ of däÍrage.

{4} ll'Jo urìlt pay up to an adrtltlooal $10.000' 'for debrÈ iem-oval e)pense' for eoclt lo-

catlon, ln any ôno occufrence of ph¡¡slcalloss or damâge lo Covered Property' ifone or bolh of he following circum-stances apPly:

Therefore, if ( ){a) and/or {4}{b) app}y,our tolal pa)rmenl lor direcl phys¡Èal lossor damage and debris removal exponsemãy reach but wlil nevef exoeed heLimlt of lnsurance on ll¡e Coverod Prop-erty that has sustained toss or damags,plus $lü,0Ð0.

(5) Examples

The followlng examplee assuma lhaithere ls no coinstrancg penaliv.

Exampla#'l

Llmil of lnsuranço

Amountof Dcduc{lble

Amounl of Loss

Amounlof Læs.Payablo

Debrls Removal Ertpense

Debris Retnoval Expense

Payabls'($10,0û0 is 20% of $50.000)

t 90,00{¡.î 500.

$ 60,000

$ 4S.500($50,000 - $500)

$ 10,000

$ îo,oo0

The debris relr¡oval expense ls less than25oA oî ths çum of the loss payuble pluslhe deduc'tbls. The suo¡ of lhe loss pay-ablo and ihe clebtis Terìroval erpense($49,5O0 * $tC,0GÐ = $59.5û0) is lessthan the Urnit of lnsurance, Thereforethe full ¿mount rf debrls ærnoval ex-penso ls parrìñfrls l¡Í¡ eccorda.'¡ca wífh theterms oíParagraph (3),

cIcP 00 10.04 02 O ISO Froperties. lnc-. 2001 Page 3 of 14




Example #2

tlrnit o¡ lnsuranceArnounl of Deductlble

Amount of Loss

Amount of Loss PaYable

Debris Removal ExPensefìãhdê Êâññral FYnpnse

Payable

$ s0.000

$ 500

$ 80'000

$ 79,500($8o,0oo - $5oo)

$ 3o,ooo

c. Flre Departn'.- -a Sewlce Charge

When lhe fire department ls called lo saveor protect Covered Property from 19gyçtÍCake of Loss, we wlll pay up to $1,000 foryour liabillty ior fire department servicecharges:

(l) Assumed by conlract or agreement priorto loss; ot

(2) Requlred bY localordinanco.

-----Na-Lqductibleapplies to-!!þ jgl"*!

Coverage'

Baslo Amount s 10,500 d. PollutantGlean UPAnd Removal

We will pay your expoDse to extracj "pq!lu\antsn fróm land or water at Ûre describedpremlses lf the discharge, dispersal, seepage, mlgralion, release or escape ol the'þollutants" ls €used by or resulls ñom'aCove,red Csuse of Ltss lhal æcurs duringtho polícy periotl. The exþencos rvilt be pakl

only if {hry are r€poned to tls in wrilirrgu1;thln 18{l rjâys oÌ lhe clate c'n whic}r l}relÌøvered Cat¡se of Losg oesurs.

Thls Addlünntl Cove.îat€ dnes ¡lot apply tocostE to test for, monilcr ûr asso.gs lha ex-i:¡toncc, cancenlrailrln or eflects of þollul-anf:¡". tut u¡e wilt pây ¡or lasling vrh¡cb ¡ô

performed tn the course of extracting the

'pollutanis" frr¡m lhe' land or vlalef.

fhe ntost we witl,¡:ay unrler thts ,\dðítîorlàltol'etage fo-r cach describgd premises fs

û1C,000 for the gtlnr of ¡ll rnvqrell e,¡ç

pêßsss arlslng ottt of Coverod Causes ofLosa occufilng durinâ each separate 12

month Perlod of lhle PolicY.

e, Increased tøst Of Construcllonf1ì Thls Addlllonal Coverage appllas onfy to' ' bulldlngs to whlch Úre Ìleplacemenl Cost

ClpÍonal Covel aga aPPllaa.

{2J ln lhe evenl of daqrage bv a Covered- ' Calse of Loec to a bnildhg ihat i9 Ëov-rrred Proprt¡ we wlll pay tll,e increaseÛcosls inctrfed to comply w¡tr enlolctÞmenl of Ên ordinance or bl¡¡ h tl¡acouþç oF rP.pa¡r, lcDuÙdl¡ìg or tepÌace'mønt ot darnaged ¡¡t"lis of tlrai properly'subiecì to lhe lirnttôtþns ulaietl ftl a'{3}through e.l9) oI lhís Atidltic¡¡sl Cover'agù-

AddlüonalAmount' $ 10,00Û

Tf¡e þasic ainount payable lor debnis

rerroval cxpon$e undar the lernrs Ùf

Êa¡asraçh igì ic ¿atoutated as Íolls','¡s:

$so,doo (S¡s'5oo + Ssco.) x '25 =gZO,OOq åaPPed âl $10,5Üi'' The caP

.'r,rriie.s- bacnt¡se lho .sum of fhe fussi'äiaf,te {$79,5001 and Ûìe basic urrtuu¡lt

baÍaOte'for debrru reøruval erpan'ce

igío,soo).""nr¡rt.exc€Blj tire Ll¡nit o? lr¡'

surânce {$gu.uuuJ'

Tha atJ¿lilíanal amaunt payabla lor debris

removet evpensè is pro'rided ln Tcqgldance wlth'the letrne of Paragraph (4i'because lhe debrls remoræi 6t(pt"rÞt'

l$æ,0o01 E*(Ãús 2Þ!,' af th9 t999 pay'i¡*e'pl$t thê deductlbte t$3úl,oü0 L¡

-7,1¡% of $88.tltltll, anrj 'r¡ur{¡uss ilrc

s¡¡m of the toss payable and deb¡is-¡u-

moval æ<Pense (579,6011 + $3Û,t09-'Sros.5oOi would-oxcee<t lho Limit ef ln

ðurati"u ' ($S0300'- The adrJitionalamount of

'cÒvered dobris rer¡x¡val e:<'

Jense ls $10,ü0Û' úe ma,rirnuÍ¡ payable

Lnoer Parragraph ¡â). Ihuv ll:e rÓry q9Y'

al¡lo lol üel¡rle ru;r¡cvvgl expðltsh ¡n Inls

example is $¿ti,5UÛ; $S.{ttìO cl f¡a debris

ternoral exPÉú$e is ¡¡at ørve¡ed'

b Freservatton Of ProPortY

tf it is nee.essary lo rnove Covered Property

¡rom ttro ¿escdhed pærnlses 10 preserve ilfrorr loss ar d+*nage by a uo'lered Oausegi I nss, we will Pay lor any dlrect ph]¡s¡cä¡

lnss or damage lo üral ProPertY:

{i} While it ls ¡)s¡ng rnoved ¡n wh}lo tempo-"

rarþstorad ãt anolher locaüon; and

{21 Onlv Íf lhs loes or damagB om¡rs wllhin'-' 30 úays afler the property ls lìrst moved'

ctPage 4 of 14 O ISO Prooerties lnc. 2001 cP 00 10 04 02




(3) The ordhranco or lqrr rr . ¡'ed to ln e.(2J (l¡) urt'.-. r lhe repairs or replacement

ø, r¡p-ÄOî¡r¡ãnã¡ b".rera'ge is an oràË are mado as soon as reasonabþ

nan* oiøw lhat regulátes ùe con- poeslblaafler-lhe lossordarnage'

stuc{ion'or repalr of büüdíngs or estab- not to e)<ceed two-years._Wo may

¡Sf,"" äonins ix ¡anA use rãquire¡nents extend thís perlod in wrlting dur-

ãt Oe-¿eiäbed premises, ând ts fn lnglhetwoyears.force at lt¡e lime of loss. (b) lf .lhe Þuilding is repaked or replaced

(4) ünder thb Add¡¡onal Coverage, wB wlll at the sameprerni¡es, or if ¡lou eleci' ' ñ"ti"iåñi å*fs cue to ar¡ orathance or to rebulld at anolher premiseq lhe

hwlhat mo6t wB_wlll-Pa! fur lhe lnøeased- Cosl o-f Conshuclbnr object to lhepmv'sionsore.(oÍffi'' before lhe loss. even when he

¡urdrigüãs úñ¿a'nraguq anc H,ffiS6l",ll?::iff*f":1 "tlb) YoufaiÞd to comPlYwlfh-

(5) Undor lhis Addllirnal Coveragq ue uillnot paYfoc(a) The enforcement of any ordinance or' '

tatfl wtrlctr requhes demolllion' repair,reoþÈsmenl, reconslrudisn. remod-

sl¡lìn ot rsmedtaÚon of property Cuet<¡ ðtr,ta¡nhallon by npollutants" ordue lo the presence. growth. proliÊ

eratlon, sPread or ÈnY aclfuitY of. 'fttngls', riæt or dry rol or bactari4 or

lbl Ar¡v costs associated wllh the en-' ' foróamerrl oÍ an añinance or lavr

whlch roqufres any lnsured or otherslo test f¡x, montlor, clean uP. re'ûtovs. conlalrL 118â1, dotcxlry or neu-tËllze, or h arry t'øY resPond lo. orBoaess the effects of 'þolhltanls"'"fungus", unt o'r dry rot or bacterla.

t0l The moet ì¡rB wll pav undsr lhls Addl-' ' tional Covemgq for each descrlbed

bulldlng lnËured under lhla Col'eragqForm, îs $10,000 at 5ol" oî the Limlt ofinsumnce appßcable to thal bulldlng'whlchever ls less. lf û damaged bulldlngls cortered under a blanket Llmlt of ln'$trance whfch applies to more than onsbulldlng or lÌem of propqri-y' q9l. lhq

mo$ ùe øll pay under lhls Add¡l¡onalCoverage. for lhàl damaged bulldlng, htha lessor of $f0.000 or 5% tímes lhorralue of lhe danragd bullding as of lhetime of loss tt¡nes {he applícabte coin-srJIãntê pÊfc€ntage'

The a¡nounl payabte urrdsr lhlo Addl-lfonal Cõt/efage ls a{rdilional tnsurancs'

({ Wlh respect to thls Addillonal Coverage:

ia) Wa rvill not pay for thê ¡ncreased- -Costof Construclion:

(¡l Until the property is aclually re'--paüed ot rePlaced, ãl lhe samo orànother Premis€s; and

(c) lf lhe ordlnøtce or law requiros relo-callon to anolher premlses, fhe mostwe will pay for lhe lnc¡eased Cost ofGonslruc{lon, subJect to the provl-slons of o-(6) of hls Addlllonal Cov-erage, ls lho hcraased cosl of con-

slruc'tion at lho nôw PremÌses.'(S) Thls Additional Goverage ls not subJecl

to tha lorrns of lhe Ordlnance or LavvExclusion, to ttro exþnt that such Exdu-slon r¡rould conflld wilb the provislons oflhis Additlonal Coverage.

(9) The cosls addressed h lhe Loss Pay-ment and Valuation Conditlons, and lheReptacêrnônt Coet Oplional Goverage,ín lhb Coverege Form, do nat incJudethe, lncr¿ased cosl atltlþulôbls lo en-foroemenl of an ofdhance or law, Theamq¡nt payable under hls É¡ldiliortalCoverage, ãs staled ln e.[6] of lhis A$dl-tional Coverage, ls not subjtot to such

lLnitatlon.f. Eiactronlc Data

(f) Under lhls Addillonal Coverage, elec--tronic dátâ has lhe meaning descrbedunder Propøiy Not Csvêted - ElecfruricDBta.

(2) Subiecl lo lha prwblons of lhls Addillonal Corerage, we lvlll pey ñcr lhs costto replace or resl$e ele€tonb @tav¿t¡fch hae òeén deslnoyod or corøptadby a Ccvered Cause of Lr¡ss, To theeitent that elecbonþ data is not rs"placod or restorod, lhs þss will be val-ued al the coçt of replacernent of ther¡edia on rvhlch ltre elecl¡onlc dala was

stored, wllh bþnk medla of substantiallyldentical t¡¡pe.

(3) Thâ Covered Causes of Loss appllcableto lbur Busítrcss Persofial Propøty ap'ply to this Adetilional Co\€rags - Elec-lronlc Dala, su$ect to the futlowing:

Ur-r r¡il|rl 04 02 lçiiSC Prarlerta€s lnc.. '¿001 Page 5 of 1{




(al lf the Causos Of . .,s - Speclal' ' Fonn applies. c'overage under thls

Artdltlonä Goverage - Eleckonic'Data ls limlted lo lhe "sPecltledcauses of loss" as defined in that

iórm. an.t collapso as sot forth lnthat form.

lbl !f tfra Cat¡ses Of Loss - Broad Form' ' a¡4)tlas, coverage

-t¡nder lh,: lddi{äilã óoverase - Electronlc Data ¡rF

----aþ¡Íãr-OÐllapl erarseHorTÞ"ln-that

5. Goverago E)(tsn. .,nsExcept as olhe¡wlse provided, the followlngF¡<tensions apply to property located in or onlhe building described in lhe Declaralions or lnthe open (ór ¡n a vehícle) wllhln f00 feet uf the

described prernlses.lf a Coinsuranca percentage of 80o/" or ¡narcor, a Value Reporting porlod syrnbol, ls shownln lhe Oeclaratíons, you may exlend ths fnsur'ance provided by lhls Coveragð Pârt as follows:

i1) Fulldlnsalf llrls policy covers Bullding, you mayexlend that lnsurar'ce to aPPIY lo:(a) Your nçw buifdlngs whílo boing built

on the described premlses; and

(¡) Bulldings yoç acquiro at. loca(ions,other lhan lhe descrÞed prern¡sos,

htentíed for:ti! Slnflar use as lhe bulldlng de

scn'bed Ìn lhe Oeclarations; or

{ll} Use r.t: a wsfshoiJsð.

The rnost w¿ wtll pay for lcss or damageunder lhls Ertension þ $?t 0,tü0 ai eachbullding.

{3} YourBuslnsEs Personal Property

(a) lf {lrfs po[f¿9 covers Your BuslnessPsrsonat ProParlS You mâY axlandthat lnsurance io aPPIY tu:

fll Bustness tlersonal property, in-cl¡.ldinç such properly that ¡rounewlyacqldra at anY loråtion Youacqulre otþ¡r than sl falr$, trad8shows or extrlþltlons;

(iíl 8uçfnê$3 flen¡onal Ptþperly, in'cÅding such properþ that youne.*{¡l acqulre, hcaled at ¡pu¡newf constucted or acqulredbulldhgs af tho localþn describedin the Dechratlons; or

{îll) Busi,rteos personal prôperly lharyôu n6r¡'ly acquire, locetBd at the '

tlescrlbod Prsnlses.Tho most wâ wlll yaY for loss or.damage unde; lhis Ettension is$100,000 ¿t e¡rct¡ l¡uildhg.

(bl This Exten$¡on droes nol appþ lo:(l! Pcrsonal prûpÈrty ûf olhers lltat ls

lsmporarilY ¡n )our Possession lnlhe course of tnslallttg or Por-formlng work on such ProPertY; or

fo¡m,

fel lf the Causes Of Loss Form ls en''' dorsed tq add 6 Ççvered Cause of

Loss, lhe additlonal Covared Cause

of Logs does not appl¡l to the cover-ago provlded under t¡ls AddltlonalCovcrage - Eleclronic Dala'

ldl The Covered Gaueeu ul Loss inclurje

'-i a virus. harmful üode orsirnilar ín-

slructlon intfoduced ilrlu ol enâclÈdort ¿, t;¡r,îÞutef sYsÞili iirrtìud:*5eleütlurb dàta¡ or a nel'rorlc tc'whlcllii ls ,.'or,nactsd. dcslgnsd lo damage

or deslrory any part of lhe system-ordísrupt íis ncimd oparatlorr' .Bu[hera is no coverage tor loss u darn-

îgs causd by or resullfng ffülì na- t

nicufalion of å computor system (ln-

ciÜalng elsc{ronic rlata} by ally ern'

Pfotoe, lnduding a lernPorary or' iaalte¿ smPloYee, or bY an ellity q

lained bY You or for You to-lnspecr,

<lesígn. inriult, rnodity' malniairl, ro'palr or rePlace lrlgl s)'stem.

f,:l Tir'. mo.çl wo w1ïl paf under thls Arldí-' ' linnnl Covomne - Fleclronlc Data ls

$Z-,SOO for all loss or rlamage- sus{ajnod

tn any one pofirry yoar, regardless ot lho

numbêi of'occu¡rencês ol loss or dâ,Í-

agn nl llre number Ût prem¡soê, loc?--

ilðns or @mputer e:/Btêßls ¡nvolvèd' lfbss pavmant on lnê l¡fsl occulfËltl}t'oosa ncír exñaust lhie amourtt, lhgtl tt¡ö

balancs ls âìratlabls for subsequont iossor damage sustainsd trt but nd aRGf thaloollcv vdar' Wilh respecl to an occt¡l-

iarrcå lirt¡ldr beg.rls ln ono pollcy yeæ

and oonlfnues õr resulis î¡î addi{lorÊln*n or damagÊ in a suboequerú pollcy

ysar(s), ãll losi cr damage is deemod.tÜ

tjé st sta¡nrxJ Ûr lhe poltcy y6ar in wÏ¡¡$ìlhe osalrfeltca begatt,

trPage ô of '14 Ð ISO P.onerlies. lnc,. ?001 cP 00 10 04 02




fil) Personal propert¡ ,. olhers that is' '

temporarlÌy ln your possersslon ln

lhe course of !'our manüactunngor whotesallng activities'

{3)Perlod Of Govorage

Wilh rcspect lo fnsurance on or at eachnäwiv aiqu¡tad or construcled propedy'

àãuá,iat¡s w¡tl e¡ro vttterl âfi'/ of lhe fol-

tondng lìrst occuls:

b. Personal Eff¡cts And Property Of Others

You mav sxl¡*d tho fnsurance that.applies{ç sç1rr Étusíness Personal Property to app'|y

lo:

{1) Personat effects orvned by you, yotr' ' ofl¡cúrs, your p€rlners t' mÊmf'ÞJs' yout

rnanâgers o,r yotlr etlployoei's' This. ex-

l¡àlso-n r¡ues irol ¿ppfy tc losg or dam-

aga bY tlreft

l2l Pensöìial proPetry of ol!¡¿rs in your cutt'"

cusiody or colìtso¡'

Tha rn{-'cf ws' vlbl pay for loos or damage

under lhin Fxtenslon ls $2,500 al eãcllt¡9-

*c¡¡f,eO prcrnlses. Dur. paynront for-lgs1.lgdarnaoe to personal properly ol onss-u¡ill oÅly Oe idr t¡e accou¡rt of ìhe owner u¡

tho Property.

c. Valuabte Pa[.- ¡ Añd RecordE (OtherThan Électronic Data)

(1) You may extend lhs insurance lhat' ' applles io Your Buslness PersonalPrðper¡y to apply lo the cost to replace

or rsstõre thó 6st lnformatlon on valu-aÞle papers and records forwhfct dupli'cates cio no{ exisl. 8ut th¡g Fxlenslondoe¡ not æpply to vâluabfs papere atdreÈn¡rls whiih ¿xist as elacìronlc ciale'

(¡úl UndEr tliis Extens¡oo, the most tre willDav lo ranlace or reslore lhe lost infor-inátton Ë $2,æo 'al aach describedÞrentlses, unless a Hgher limft ls shov¿n

in lhe Declaralions. Sucn amounl is ad'dltione.l însurance. Wa will also pay forthe coal of blank matarial for reproduc-íng

'the recorrls (tdrether or nol duplÞcães e,xbl), and (when lhere !s a dupll-rate) for tf¡e cr¡st of labor lo lranBcribe orcooú lha records. The cosls of btankmåtätn¡ and labor aro subþct io the äp-plkabte Liml-¡ of lnsurance on Your

il¡lslnoss Personal Properly alr<¡ tl¡ore--fore co'rerage of suclt 6osta ,s noi addi-lioal insuranoe.

d- FroFarty Off-Premlsgs

(1) You may €xþ.rnd lho -riesûrarne- provlded- -liy üris Coveraga Form to ?pPly to yourC-svered Property wtllle it 'ls away from

. ths dssqìbed Premlses. if il ls:

(a) Temporarily at a tocauon you do notown, lease or oÈorate¡

(bl ln storage 8t a locállon Vou -lepo-,' 'orovHed- lhe lease ratas execuled af-' ier tho'b'eginnhg of the a¡rrent policyterm; or

(c) At any þÁr,lrade showorexl¡þillon-(2) This Extenslon does not apply to prop-erty:

(a) ln or on a vohicle: or

{s} Thi3.policy.oxpiresi-. , - Flectrurric dåîË ha3 tñe .-ceoning c-

(b) g0 days expire.afrer you acquire rho-ièF6äd-ï¡'ñdäilmÌteiõ/-Nöt cdt'eref--''-

orooërtv or bestn .ó"åi*"t¡ãìioi rt t Elaclronlc Datâ'

ã¿ËJr't¡u uuiiãíng lhatwould quali! (4 ll lha causes of Loss -.spa9la! Fo.rm

ããio'*u¿proper{y;or Eppll€s, covefage under-thls Exlension

(c.}Youreportvaluestous'ls'lim¡teotolhe.speclfledcausesofwe wül charso votr addilionar premium iä:"å:"1",H0nü,å?ttJ:#'

ahd Çol-

írr values ¡lponød from lhe dale you

acqulre fhe property oi"otglrr -co¡sfrqi {3} lf the t3auses Of loss - Broad Fonn

lþn of lhatpart

oíine iruildìö $ìat wou¡s ' -

eppliss, ct'erage under thls Fxtenslon

auatity as côvered propc¡Îy' ;1;[to"- Collapse as set forlh ln ihai

cP 00 10 04 0? O tSO Prooerties lnc . 2001 Pagn 7 of 14 n




(b) ln the care, custody. .-.-;onlrol of your (b) Durin$..-..ictrlng or unhltching opera-'-' i"tesp"t*ons, unleis ine property is lions. or whsn a haller becomes ac-

'fr..

"uätrcare, oustody or árntrol át a cldentalþ unhltched from a molor

iãft,Gãe shów or exñib¡tlon. vehlcle or motorizod conveyance.

(3) The most we wllt pay fqr l-oqs_ or damage (3) Th9 mgs.t w9 will pavJor-lo¡s or damage

'-' undeiiñì" E¡tensËn'is $10,000. under lhis Éxtension Is $5,000, unless ae. outdoor property higher r¡m¡t is shown in *re Decrara*ons.

You may extend tha insr¡rance providad by (o) l"^. lnsurance tç êxcess over lha

mis co,ärus" r,ü'ti"Jpffif:l",i,lã#: ñTi",*fiå,H;fi,,i$'#1,#5":f;--.--fen.ee,-fadrn-anrr-JeravjsiortcNBmas_J[:.._._...___-.___.JrilsäH;iü;ä:-__ __cluding satellita dlshes), signs (other lhan

i'¡gns'ätt"ci,ed- to nuilclirgei, tfggr, strrufrs Câctì of theac Exlensþns ls aildilional fnsumnce

ãriä pÈnrÁ' tonef q4 "sqck". of lrtes, yrJesl glherwis3- h.dicated' The.39gt["!9 93.fd¡äürîniîñlàñtsi,'tncluding deb'ris rêfrrov¿i- th;t, Coinsurance. does not appty to lhess Exten-

ãinänle,'caused by or resttltlng from any of slons'' må fo[otv¡np carJses of ¡oss if lhey are Oov- 8, Excluslons Ànd L¡rn¡iat¡onsered Gauses of Loss: Ser apptir,abla Gauses of Loss Form as shown h(l) Frre; lhe Decla¡atlons.p) Lþhlnlno; C. Ltmlts0f lnsurance

{3} E)çlosiûl: Tho most we wíll pay for toss or damage fn any

{4} R¡ot or CMI Commoüon; or one occ,t tronce is lhe- appllcable LFnit of Insurance

(5) Ærcrafl. shown in lhe Doclarations'

The most ws wl,l pay for loss or darnagq The mosl v¡s wilt pay lor losg or damage to ot¡t-

under ll'¡is Êxtgnsion is $l,0tlq but not door slgns atlactred lo bulldhgs ls $'l'000 per sþn

rnore tnan $25o ¡or ;ti oö'Ë;. ci?iø ãt In âny ono occuffetrüe'

;t",ìi. ìt-""àlinrlts apply to äny o¡ìe ocüLtr. The _limils nppt$$!1 lo thl Firc uepârtrno¡t Sorv-

iåiïä. *ã*ai"g ct itïitypcs ór nurrber of he ììharge_ar¡ii Polh.rtan't 9tean.!F end. Retrnval

iùrnri""iîr darnagect in thät occtrrronce. Arirlitfonal covârãqes ora ln addilion to the l.iûúls

f. Non-Orpned Detached îraller¡ t!rânc6'

(ll You may øxleml tho Inswancs that Pay;nante u¡der the P¡ecen¡allon of Proporty Atl-

aoDlies to youi ä¡.¡slncss personal ditíonal covelâgê vdll not Increase lhe appllcable

property to apply roláü ãioamagê. Q Limllof lnsurance'

hallärs'rtrat ftiudo not orm, provided D' Dsducl¡bls'

lhâlr ln any one occuroriclr of loss or damage-(lrereh-

(a) Ths traiter ls used ln your btþlness; after iolerred to as lose). rye- wl{. frslreduce lhg

rb) "rhe rrairev rs r.r youl c'ro, cr¡srodv or ffi,iå,lllii;iåä'ifrJäffi,5"åäåii' ' r¡¡ntrr¡l 6t lttê prerclsas desøibed lnF .re ar[usted anruunt of lc¡ss hs lgss than or eqial

lhe Decf;al¿tlonq and to the Deduct¡¡le, we vyiniof-pay

lor trat tosé. f(c! You have a corttrôctual rasponsìbility llre a,ljusted a¡nount of loss sr¿eeds thê Deducli.' ' to Pay for lr¡ss or rlamaç fo lhe Ue, wä .uitf then sutrl¡act lhe E¡cducllbfe from fhe

trall-er. adjusted un¡ourrt of loss, ênd W[ pay lhe retultlng

(2) \üe will not pay for any loss or damage smou¡lt qr tho LfoDll t t lnô¡rânce, whlchever 'to

thatocctrg: løse'

(a) whlle the trailer ¡, [email protected] to ?ny whon lhe occt¡rence lnvolves loss lo more than

motor vehicla or-mjøiizó¿ cor¡uey- one'ítem of Cdvered Propirty and separafo lJmiB

änce, wn"r,"r ãi áäii¡" motãr veli- of lrsuance apply, fhe totsae wlll not be combined

ù- ó¡ motornøõnváyanc"

f ¡¡ttn datetrnlnhg a.pPlicelbi¡ of the Dedt¡c{il¡le. Ðul

mot¡ol; tt¡e Daductíble wlll be applfed only once psr ocoor-rgnce.

Paça $ of 14 O ISO Properties. lnc.. 2U(t1 cP o0 10 04 02




Example No.l:(Ihls.example assurnes lhere ls no coinsuranco pen-a¡ty.)

2. Áppraísal

lf we and you disagree on the value of lheproperty or lhe amounl of toss, ellher maymake wrilten demand for an appraiml of theloss. ln lhls evenf, each partyw'úl sdect a com-

petent and impartial appralser. The two ap-praisers wül selecl an umplre. lf lhey cannol

Deduclible:

Limit of lnsurance - Bldg 1:Llmll of lnsurance - Bldg. 2:

Losc tc Bldg. ',:

Loss to Bldg. 2:

$ 250

$ 60,000$ 80,000

$ 60,100

$ 90.000

Tha amounl of loss to Bldg' I (S60,100) ls lessthar the sttm ($60.250) of the Limlt of Insuranceapplicable lo Blrlg. I plus lhe Deductibls,

The DeducÌlble vvlll be subfacted from lhe amountof losç in calorlallng the loss payâblãfor Blü9. i:

$ 60,100

- 25A

$ 59,S50 Loss PaYable - Bldg. IThe Deductible applles once per occunence andlherefore ls not subtracled ln determlning lheamounl of los$ payable for Bldg. 2. Loss payabte

for Bldg. 2 is the-Llmit of lnsurance of $80'Û00.

Tofal amounl of loss pâyþle: $59,850 + 80,000 =s13e,850

Êxample!úo.2:

ffhts e>campte, loo, assumes fhere ls no colnsurancepenã¡ty.)

Tho. Deducübt" *6 ¡imits of lnsurance are the sameaç lhosg ln Þ.ample No. 1.

Loss to Bldg. 1: $ 70.000(exceads Llmit of kTsurãnce plus Deduc{lblÐ

Loss to Bldg.2: $ 90,000

(exceeds Límít of lnsu¡anca ptus DeductlÞle)

Loss Pa¡¡able - Bldg. {: $6o,Û80

{Limit of lnsttrance}

Loss Payable-Blclg. Z: i'OO.OOO

(Llmit of lnsurance)

Total amoun¡ ol loes PaYabte:

E. Loss tcndÍtlons$140'ooo

The follovi,ng condifþns åpply ,n addilfon to the

Corn¡nort Polloy ConOilions and .lhe GommerclalPro¡rerly Gondltlons-

{. Abandonment

There can be no abandonment ol any proportyto us.

a. Paylta chosen appraise6 and

b. Bear {he ol¡ìer exponses of tho appraisaland urnplre equalþ.

ll lhere is an appralsal, we wlll sflll retain ourrþhtto derry the claim.

3- Dutles ln The Event Of Loss Or Damagea. You must see lhat lhe followlng are done in

the event of loss or damaç lo Coverodproped¡¿

(f) Not¡fy tha pollce if a law may have beonbroken.

(2) Gtrê us prornpl noilce of lhe loss ordamage. lnclurte a rJescilptfon of theproperty involved-

{3) As soon âs posslble, glve us a desøip-.llon of how, when and r¡¡hg¡e lhe losg ordamega occurfed.

(4) Take all reasonable sleps to protect lhoCoyered Propsrty from furlher damagq

I an, keop a tecord of your sxpÈnsesnecessary lo protecl lhe Covered Property, lor consideral¡on fn the setllen¡entôf the olalm. This wlll not fncrease lheLimit of lnsurailce. Horyever, we wllt nolgay lor any,subsequent loss or damage. resultlng from a cause of loss thaf ls nota Coveted Cause of Loss. AIso, il feael-blo, set üro darnaged property aside andh lhô bqst posslble order for exåmlna-tlon.

(5) Al our regÞsli gþo us complete hvonþtories of the damaged and.undamagadproporty. Include guâAtllles. cosls, val-ues and amouitl of loss clalmed.

{6} As oflen as may be reasonably requlred,permlt us lo lnspect ihe proporty fFq\'¡nglhe'loûs ôr damage and examlne yorrbooks and records.

cP 00 10 04 02 G)lsu Propertles, lnc.. 20ul Faga 9 cf14 D




Also permit us to b¡(6 \ -.,¡pl€sof dam-

aqed- ar¡d undamaged pmperty for ln-sfection, tesling and anelysls. and per-

niit us to make coples lrorn your booksend records.

(d Send us a slgned, snornproof of loss

' oo¡rtaining the Informallon we requett lohrvestþa[e tha clalm. You must do thlswltlrln é0 da¡rs aftø otlr reo.uêsf- We wilfsrrpply ycu with lho necessary íorms.

We may adJi....'lossos wllh the owners oflost or damæed proporty lf other lhan you.lf we pay the ourners, such paymenls tdllsalisû your clalms agalnst us for lhe own-ers' property. V/e v¿ill not pay lhe orvnersnprs Íhan their financlal [nterest In the Cov'

ered Properþ'.We rnay otecl to defend you agalnst suítsBrlsing fraflr clalms of owners of properÇ.l¡À/e will do ihls at our expense.

b. Wg may examlne any insured under oalh'whila nó¡ ln lhe presenco ol any other in'sured and at suc*r llmes as ntay be rea-sorubty required. about any mattor relaiingto th-rs ir¡snrar¡ce or lhe tJalrn. lncludhg anlnsured's boc?.s erú records. ln lhe event ofan examination, aþ insured's anguíers mustbe sþned.

4, LoËs PaYmenf¿. fn the eveni of loss or óamagø covered by

lhls Goverage Form, at otlr option' wB wil¡dher:

{1} Pay lhe value of fost or damaged prop-erly;

12ì Pãv üre cost of repalrlng or replacing lhe' ' losi or damaged þroperty, sublect to b'below;

(3) Take all or any parl of llre properþ at an

agreed or aPPralsed vals6; or

(á) Repair, rebulld or repÞca -rh.e f'rgnertf' '$rilit other property of like klnd and qual-

itY, sublect to b. belorY.

We w¡Il delsn¡ine lhs value of losl or dam-agad property, or lhe cosl of it-s repalr or.re-oËce¡i¡ent, iá accordancæ wilh lhe aqpliva'ble terßrs ôf the Valúalbn Conditlon in lhlsCov€lago Fon¡r or any appllcable provlslon

whlch amsnds or supersedes lhe ValuallonCondilíon.

b. The cost to repair' rebuild or replaco d¡esnot incUde lho'increased cosl attrbuùõble toanforcemgnt of any grdlnanoe or lâw regu'latíng fñe c¡nelruct¡on, uce or repalr of any

' pmperty

c. We wlll give noti¿e of our ínienllons with¡n

30 days ãfter wa ;ecalve lhe sr¡rlorn proof of

loss.d, We ¡¡ill not pay you more thsn your flnanclallnterest in the Öovered ProPatY-

wllhin 30 days after weor dan¡a¿¡e

-

r l¡le SWoIOproaf of loss,'lf you have complie<t wilh all oflhê lârmô of thls Covenage Parl artd:

(l) tÂte trave reac¡ed agreement wíth youcn lhe amount of loss; or

t2) An appralsal a"'rald has been made.

Recovered Propertylf oilher you or we rôcovet any prçerty after

loes sel[ement. ¡hatparty

nustgtve

fheolhor

prompt nolice. At your opllon, the properiy willba reüJrned to you. You must then reiurn üc uelbe amounl we pald lo yo{¡ forthe prcperty. wewÍfl pay recovery êxpênges and the expÊri¡es lorepaír lhe ¡ëcilverêd propsrty' sulrfact lo lheLl¡nil of lnsurance,

Vacancy

a. Doscriplfon Of Terms

({l As used ln this Vacancy Condiüon, ùe- -term buildlng and the term vacant have{he meanlngs eat foith ln ({Xa} and

{lXb) below:

(a) Whon lh¡s Pol¡cy is issued tg a teq-ant, and w¡ü¡ respect to lllaí tenanfslntarest fn Covered Propetty, bulldingmeans lhe unlt or sulte rented orleased to lhê tenanL Such buildìng ¡s

vacant when it do¿s' rtot contalnerrougth þt¡siness pèrsona¡ propertylo conduct cdrstcrnary crperalions.

(b) When lhtt Potþ ¡u ls"tt{ tq þPosrnar or generat lessee of a bu$úlng, bultdlng means lhe enttre bullû¡nó. Suctr buifdirrg is vacsnt uiless at

.least 31?å' of its iotal sqüaft' foolagefs:

([ Rented to a lassee o¡ suÞlosseeand used bY lhe tæses or suÞlesseo lo conducl fts anstomarYoperallons; and/or

0l) Used bY lhe bullding owner toconducl customary oPerations-

(s)setllemeni of the claim.

Page 10 of 14 0lSO Pronerlias lnc 2001 cP rì0lo 04 riz Ú




(2) BuildhgS under constn,.. -on or renov€Þ d. Glass at lhe',,-'st of replacement wlth safety

tion are not considered vacanl- glazlng nnterial if required by law'

. Þ. Vacancy Provlsions e' Tenant's lmpfoVements and Bettermenls at:

lf lhe building where toss or damage oocurs (1) Actual cash value of Ûre lost ordamaged

t"å'Ouuï vuänt tor more trs¡ 60-consecu- propeTty if you make repairs Promptly-

tive days befors lhat loss or damaga oc- (2) A proporllon of your orlglnal cosl ¡f yo{¡çufs: do not make repalrs promplly, We wiii

f1! we will not pay for env_lo-ss -orda;magø deJem|ne tha proporlonate value ãs

''' cailserl rry átv of lhe'folfowlng e¡ron lf lollows:

lhey are. iovered Causes otl¡ss---- --"-{a}-$tutHpt¡$e-eriqls¿þpsl-þptþs-¡ul*------(c) vancalism; ber of dayo from the loss or damage

(o) :ffH:[ '$*"fË*Hï,ïnïl3i,i"îi_ ,,, 1"*h:'#:il"JJ!:iöi,ii ,rü,*'-' ì'- -¡----'- -e-"- -

sbove Þy.tlp nuTF of days from

(c) Buirdinesrassbreakaee; A:"T;låHliSt,it"lgJlT''snrsro

{d) Water damage;

{e) Theff or

(l) AttemPted theft.

12ì Wilh resÞecl to tovered Gauses of þss'-' oiher than lhose llsted h b'(rxa)through b-(r)$ above. yâ yll reduco

Ure a-mouni wd would othôm¡se pay for{he loss or damage bY 15%'

7. ValuatlonWs wtll clelermtne lhe value of Govered Prop'

erty in the ovent of loss or damage as follows:

a. Æ aclual cash value as of the time of loss or-'uámãse, except as proylded ln b', c', d' ând

ô, bê¡ûrrr.

b, lf lhe Llmit of truurance for Bulldlng salls-

fies lhe AddiÜonal GondltTon. Colnsurance'and lhg cost to repair or-taplâcÈ lho dam-

âged bi¡¡ld¡ng proPe(y ls- $2,500 or. loss, wewîtt pay lhé-cost of building r€pal'rs or re'pl6cemed.

The ctst of buildlng repoirs or roplaceneDtúoes not inch¡de the hrcreased cosl atlrib¡t-

unf* O enforcernonl of arry ordÌnance or- lawieoulàtna tho conslrucüoi, uso or repalr otarii proöertv, However, lhe lbrlowlng prop-

étri itAl'Ue'ualued at ths ac'l¡Jol cash value' wánwtleû atlachedto tne bulldlng:

(l) AwninF o'- floor coverlnge;

(2) Appllances for refrlgerallng' venUlatlng'' '"óòkhg.

dlshwashíng or laundering; ø(3¡ Outdoof squlpmênt or ft¡niiurs'

c- 'Sloc*" tou have sotd but not delivered atthe selllng prlce less dlscounts and ex-

penseo ¡rou olhen¡nise would have had'

lf ¡our lease contains a renerr¡al lptlon.thè expiration of the reneunl optlon pe'rbd wil¡ replace lhe expiralion of lhe

leass ln lhls Procadure.(3) Nolhirng if olhers pay for repairs or re-placement.

F. Addltlone! GondltlonsThe following condillons apply fn additlon to lhacóynmon pdiry con¿¡ilonå'dro he CommercialPropertY Condillon5.

1. Colnsurance

lf a coínsuranca percentage is shor¡n ln lheDeclarallons, lhe fo¡towins condltion appllos'

a. r¿Vo wilt not pay the íull amôunt of any lcss ifiha vah¡e of Cô'rered Property at lhe llma of

lossllmes

lheGolnsurance percunlag+

sþ3wn for ll ln the Daclarallons is greaterItnn the Limit of lnturanco for the Proporty.

hìstead, we r.v!!l detonnlne lhe rno¡t we w¡llpaY uslng the following ctePs:

{l} Mu}tlpfy lha mfue of Govered Properly atI '

the tÍnis of loss by lhe Coìnsur¿rìtg pol!cenlage;

f2) Oivlde the l-lmil of lnsuranos of the'property by thefr¡iure detennlned h Step(11;

trcP 00 10 04 02 O ISO Prooerties Inc 2001 Page 11 of 14




l3l Mt¡lliofu the total arnoui.. -.,f loss, before''' ttre åpi¡l"aUon of any deductlble. by the

frgure ðetermhed h SteP (2); and

l4l Subbact lhe daduclible from the figure' ' determined in SteP (3).

We wlll pav fho amounl determined ln Stepl4I or lhe-limit of insurance, whichever is

i"s*. non the remainder, you rvill ellher haveio rely on other lnsurance or absotb the loss

Exampte No.3:

When: Thevalue of ProPertY is:Bldg. at Locatlon No. 1

Bldg. at Locatlon No. 2Personal ProPerlYatLocalion No.2

The Coinsurance Per-cenlage for it ísThe LlmÌt of lnsurance

$ 75,000$ 100,000

$75.ooo

$ 250,ooo'

9Ùolo

Exampla No. I (Underlnsurance):

When: Thevalue of lhePro¡erly isThs Goinsurancc PeÊcentage orlt isThe LimÎt of lnsurancefor it lsThe Deductibb isThe amounl of loss 'ls

lVhen; Thevalueof lhêProP-ertY's

Step (1): $250,000;¡ gQlS = $200,ü)0(lhe mfnimum arnount of hsuranca to

meet your Colnsurance requirernenlsi

Step (2): $100,000 { S200.0c0 = .50

Step (3); $40.00u x.5t] - $ZO,00C

Step (4): t2o,00o'92û = $19,750

Its u'ill pay no more lhan $1S,750. The remaîniltg

$20,250 is not covered.

Example No. 2 (Adequate lnsurance):

ñf E6ñh!:s-ãltÚFE¡=---sonal Property at Loca-tlonNos-1and2ls $ 180.000Tlre Deductibla ls $ f .00OThe amount of loss is:Bldg. at Location No.2 $ 30,000Personal ProPertY atLocation No.2. $ 2q.O00

$ 5o,o0o

Stop fl): S250,000 x90% = $225,000

(tt¡e minimum amountof lnsurance lomeel your Co¡nsur€nce requiremenlsand to àvold lhe penalty shown botow)

Slep (2): S1Eo,00o + $226.000 = .80

Slep (3): S50.000 x .80 = $+O'OOO

step (4): $40,000 - s1,o00 = s39'o0o

Ws ¡'rlll pey no more than $39,000, Tho remarnitlg

$l 1,000 ìs nol covered

2. MorlgagEholders

a, The term mortgageholdsr inc'ludos lrustee'

b. We wìll pay for covered loss of or damageto bulldlngs or stuclures lo each morlgago-holder shówn fn the Declaratlons ln lhelr or-

dor ofprecedence, as lnlerosts may aÞpeaf'c* The morlgageholdeÍ has lhs tlSlt to ¡sceive

loss paftent even if lho modgageholderhas iørtaO forec{osure or slmilar acllon onlhe buildlng or slruclurs-

d. lf rvo deny your claim because of your aclsor bocauée-1ou have faned to comply whhlho loms oi this Coverago Pail' the mort-gqgeholder wlll st¡ll hav¿ the right to Æælvaiosõ payment ¡t the mortgãgehddet:

{1) Pays any pre,rnlum dua under thls Csrreæge färi al our requesl if You have

' failed to do so;

(z) Submlls a slgnecl, sworn proof of loss' 'wfth¡n 60 dã¡rs afior

¡scelving not¡cofrom us of Your failure to do so; and

$ 250,000

80%

$ loo,ooos 250$ 40.000

$ 2õ0,000

The Coinsurance Per-csnlagð for it is Sg9/o

The Liml of lnsurancofor it ls $ 2oo'oÛo

The Deduclible is $ eSoThe amount of loss ls $ 40'000

Tha rnlnhum amount cf lnsurance to meelvour Co¡nsurance requirement b t200,000iszso.mo x 80%). Therefore, lho Llmn or

Ìñã,i""'n"" fn this Êxampfo ls adeguaiâ åndno oenatlv eniies. We will pay no more

inari $3g,750'i$o.ooo a¡nount of þss ml-

nus tho rJeducllble of $250).

h lf one t lmlt of lnsurance applies to two ormore separ¿!Þ iÌerns, lhis condlllon yl¡ 9¡-

óiv r"tis total of all property to whlch lhe

limlt aPPlies.

Pacle 1? nf 14 tÐ tSO Properties lnc . 2001 CP 0o 10 04 Q2




{S} t-l-ôs notilied us of any t.....J99 in owner-'shlp, ocdlpancy or subslantial change lnñsk knov¿n to the morlgageholder-

All of fhe terms of lhls Goverage Part willthen apply dìreclty lo the morlgageholder.

e. lf u¡e pay the morlgegâholder.lor any loss ordamaþe-ancl deny payment lo you becauseof yorr acls of because you have iailed tocompty with the lerms of tltls CoveragoPart

frl-f nãm-ortsas-eholdã,r'iñgììs--wãé7-1ñF-' 'rnorlgage will be transfered to us lo lhÞ

c. The terms c¡i...¡s Oplional Coverage appfyonly to loss or damage thal occurs:

(11 On or after the effsct¡vo date of lhisOptionalCoverago; and

(2) Before lhe Agreed Value expiration date

shorur ín the Þeclaratlons or thepol'tcy

expiratlon date, whlchever occurs first.

lnflation Guard

e. The Ljmlt of lnzurance for properly to [email protected]_ed will aulo-

matically hcrease by lhe annual percenlagte

{2} The mortgageholde¡'s righl lo lecover- -ths full arñount of fhe mortgageholdet'sdalmwlll not be lrnPalred.

At our opllon. we rnay pay to the mrrtgage-holder lha whote grincipal on tho mortgage

. p¡us any accrued Inlerest. ln {his evont, yourmsrlgsge ar¡d noto will be lrarsfened to us

a¡ìd yÐu ur'{l pay your remalning rnortgagedebt to us.

f. lf we oancet thls polloy, vle will give writtenno(ho to ths rnortgageholder al teast:

({l 10 days before tt¡e effectfue date Ôf

cancelatlon lf wo cancel lor youl non-

Payment ol Premium; or

Í2ì 30 daw before lhe offecllve date of' ' cance['?lüon lf we cancel for any otherÞâson.

g. tf '*e de¡t not to renew lhls policy- we will- give witten notloe lo tha moÉgagehoHer alleast 1o days before lhe expiratlon date ofthls polþ.

G. Opllonal Goveragos

lf shown as appllcabte ln tho Declaratlons' lhe foþlowirrg Opiloriál Coverages apply separately toeachlþm.l. AgreedValue

a. Tt¡e Addllional ôondltloU Colnsurancê,does not appty 1o Covered Property lo ttrt¡lchthls Optlonal Cover,age applles..Wg $l payno moìe for þss of or damage (o lhat prop-

erty ttran lha proportlon lhal ìha-Limli of ln-suranse under this Coverage Parl for the

. propeûy bears to lhe Agreod Vefuo shownforIblhoDedarallons.

b. lf thc expiralion date for this Opüonal Gov-

erage shown ln the Dedarations is not ex-lsnded. the Addlltonat cond¡tbn' Col¡rsur'ancâ, b reinslated and lhis Optional Gover-age otplres.

e,xtent ofthe arnount we PaY; andshown ln lhe Declaratlom.

b. The arntnl of lnsreaso will be:

{f} The Limit of lnsurance thal applied onlhe rnost recer¡t of lhe pollcy incepliondale, the pol{cy anniversaty datg oÍ anyother policy chango ernonding t¡e Limltof lnsurante, thtles

(2) The perçontage of aanual incrsas€

shou¡n ln üie Deôlaralfons, €xpretgèd as' a declrnal(example: E% is.08),limes.

{3} The number ot da¡æ since tha beglnnlngof fhe current policy year or lhe offectlve'daltt of lhe mosl recent policy changeamending the LÙnÍt ol lnsuranco, dividedby 385.

Example:

lf : The appllcable Llmlt oflnsurance ls $ 100,000Tlie annual Perconùagelncreass is 816The number of daYssince lhe beginning oÍ

lhe pollcy year (oi lastpdlcyct¡ange) ls 146The amount of lncreasels sí00,000 x .08 x 146+365= $ 3¿0o

3. Reptacemont Cost

a. Replacernent Cost (wilhoul deduclion fordepreclalion) replacas Aqtual Cash Value lnthe Loss Condilion, Valuatk¡n. of lhis Oov-erago Form.

b. Thls Opflonal Covarage does not dpply to:

Porsonal PropertY of others;

Contents oI a rosldenoe;{r)(2)

cP nn 1î 04 02 ,î'lSO P.¡c..lies. lnc ?fnr Page 13 of 14




..tt'"epqreer?!.p:grqf f .v.gjg$:lÌ:-,.....,"..-.

fgì Works ol arl, anllquosr..-' rate articles,' ' lnctudlng etcfilngs, plctures'

"J?!ary'mur¡t"sl bronze-s, porcelalns and bric-a-brac; or

(4ì 'Stock'. untess tho tncludlng 'Stock"

option ls shown h lhe Declaratlons'Under the terms of lhis Roptacement Cost

Optionat Coverage, lenants' ímprovements

"riobettermentsrare not considered to bs

lf a building Í-....¡bullt at a new premiseq lhecost described ln e.(2) above ís Dmiled tolhe cosl whir:Ì¡ would havs been incuned iflha bulld¡ng had.besn rebuilt at the original

Premises.f, The cost of repaÍ or replacement does not

inc{uds the íncreased cost atÙibulabks toenforcerirent of any ordlnance or law regu-latlng the Çofisbuction, us6 or ropair of any

ProPertY.-'-'4:'Extedslon' êFReplaeament-cout-To-FersonaL"

Propêrly OI Others

a. lf the Replacemonl Cosl Opfional toverageis shorryn as apptlcabte ln lhe Decìarallons'lhen lf¡ls Extension rnay atso bo shoìfln âsapplicable, lf lhe Declalailons shorv thleExtension as applicable, then Paragraph3.b.fl) of lhè Replaceme-nt

-GostOpllonal

Covèrage ìs deleted and all other provisions

of the neflacoment Cost Optional Cover-agø apply'to reptacemenl cost on pøsonalpropertyof otherc'

b. Wilh respect to replacemenl -cost- 9n fheparsonal-propedy óf others' lhe followingIímltalion aPPlies;

lf an item(s) of personal property-of olhersts subJect lo a written contracl whldt g9v1

ems yäur [abllity for loss 91 gqma-Sq lo that'itern(ó), hen vaiuation of thal item(s) rvlll be¡ase?-bn tho arnounl for whicir you are ii'abþ under such contract, but notlo excéed

nì ¡asÁ"t of lhe replacernent cost of theproperty or lhe appl-rcable Limit of lnsur-ance,

H. Þellnltlons

1. "Fungus'rnoans any lype or furm of ftr.ngus'indrñing mold or m¡i¿ar" and anymycoloxins,sporee,ìcents or by'producls produced or r+'leasad bY fungí,

2, 'Pdtufáola'means any soll4 llquld, gassous or- lhermal lnltanl ø -contarnlnanf includlng

smoke, vapor, eoot, fuines, .aclds, alkalis,cttemlca¡" ánd waste. Waste lncludes materiãlslo be recycled, reconditioned or reclalmed'

3- "stoclt'means merctrandlsa held h slorage or

for sate, raul materbls and ln'procoss or f¡n-

iãñt¿ ú;Ot, includlng supplles used ln lholr

Packing or shlPPlng.

iI

c. You may make a claim for loss or damage--"Ãrä"d'W

lhls ingurance on an actual cashvalue basis lnstead of on a replacementcost basls. ln lhe event you elect lq havg

øil or darnago sellled on an acfual sash

dlue basis, yóu may siill make a o'loirn lcrlhe ¿ddltlonal Gova¡ãgê lhis Oplional ccr'eraoa Þrovides if you notlfy us of pur irrtent

io õo'so wlthh ist days aRer Úte los¡ or

damage. '

d. We will not pay on a replacement cosl basísfor anY.loss or damage:

11ì Untit lhe lost or damaged property ls

actuallY rePaired or rePlaced; and

(4 Unlass tho repalrs or replacement .91e' ' made as soon as reasonably possible

aflerthe loss or damale.

Wlth respecl lo fenanls'lmprovements and

bettemrcnts, the following aho âpply:

(31 f lhe condilions in d.(1) and d'(2) above" ' ate not met. lhe valuo of tenanls' lm-

ñrorc^"nts and bettorments wíll be cÍe1

iermined as a proporllon of youi origtn-a-l

cost, as sat forlh ln lhe Valuatlon Condl'

llon of lhls toveraga Fo¡rU and(¡) We will not Pay lor loss or damage io'' iounrs' trrpiovements and betlermenls

it olhers pay for repaìrs or replaceme¡ìt'

a. tlle'.rl!l not pay rnore for þss er darnage on--'å'teüiäc"mänt cosf basis lhan lho least of

tt), t2) or (3), suble6't to f' below:

f1ì Tho Urnlt of lnsurance applicable lo lhe' losl ordamaged ProPerlY,

l¿l Tho cost Ûù replace he lost or damaged

ProPêrtY with olher ProPetlY"

(a) of compamble malerial and guallty:

and

(b)Used forlho samo

PUrPoso;

or

f3ì The amonl actually spent lhat ls nec'' ' ess"ry to repalr or'replace lhe lost or

damaged Proporty-

trPage 14 of 14 @lSO Properties, lnc., 2001 cP 00 l0 04 02




IMMERCIAL PROPERTY" cP00320402

BUSTNESS INGOME (WlrHOUr EXTRA EXPENSE)

COVERAGE FORilIVarious provisions ln lhls potlcy restrict covefr¡ge. Read tt¡e onlire polriry caretully lo determine righls, ùrtíes and

what ls and ls not covered.

Ott¡er words and ptnases thateppear Ín quolatiorr marks have special meaning, Rofer to Section G. - Delinttions'

in lhe Declarallons. The

words \,e', tus'ând refer to the Company providfng tltls insurancE.

A- Covsràgø1. Buslness lncome' Buslness lncornemeans lhe:

a. Net tncome (Net Profil or Loss before ¡tt'come laxes) tlrat would hwo been earned

orfncuned; andb. Gontlnulng normal operallng expenses

hcurred, lndudlng PaYroll-

For ¡nanufselurlng risks. Not lncomc lncludeslhe nel sales realua of production.

Goverage ls provided as descrþed and llmltedbstow for one or more ef.the following optbns forwhict¡ a Ltmll oI lnsurance ls shovm fn the Decla-rations:

a, Bushess lncomo includlng oRenlal Valuo".

b. Buslness tncoma olberlhan'Rental Value'.

c. 'RenfalValue".lf option a. above's seleuted, the term Bustness

lncóme wül lnclu<le "Rental Valus". lf oplion c-above ls eelected, the ternr Buslnsss lncorne willmeãn "Rentãl Vatuo" mlY. .

lf Ljmtts of lnsurance ara shorryn under nlÔlé ¡hanone of lhô abovs opfions, lhe provÞbns of lhlsCoverago Part appfy seperately lo eadlWs ìlrill pay for lhe actual loss of Bus¡nèss lncomoyou susiatñ dus to lho necessary -suspension" of

iour "operatlons- during. he "per'rod of rosto¡ation'.?he "súsprnsion'tnust be cgused by dÛect physF

. cal þss-of or damage to property at prerniseswhhtr are doscrtbed ln the Oaclarati<rßs end fo¡whloh a'Buelness lncgma Umil of Insurance isshown ln the Dec-laratlom. The læs or damagemusl be caused by or tesult from a Covered

Cause of t-oss. With respecl' lo loss ot or danagoto personal p¡qperly Ír lhe open or pereonal property ¡iì a vehicl9, tho desc¡lÞed pemlses incl¡¡dethé area wthh lO0 feet of lhe sile at wtrirù lhe de-scribed Premfses are located,

With respect to the requlrements sel forlh h lheprecedlng paragraph, if you occupy only parl of theslle at whlch lhe descrhad prernhes are located,yourpramises means:

a, The políon of the buifdíng which you renlJbase or occuP¡4 and

b' Æty aroa within lhe buldlng or on lhe site atwh'lch the descnbed premlsos are locatsd. iIlhat area serylces, or ls used to gah accsssto, tha described premises.

2. Covarad Causes Of Loss, Excluslons ¿ûndLimltatlons

See appllrbte Causes of Lgqs Form as shov¡nIn the Declarations.

3. Addltional Limllalion - lnterruptlon ofCornpuler Operatlons

a. Covoæge fcr Buslness lncome does nolapply whon a 'suspenslon" of 'opofallons"ii caused by destruction or oonupllon ofelectronlc data, or any loss or damage ioeleclronic data, except as provtded underthô Àdditional Coverage - lntemrption Oftomputer Operatíons:

b. Elec-tmnic daþ means lnformaüon, facts oroonpder pmgarns stored as or on. croatedor used on, or fansmlüed lo or hom con¡putor software (lnducling systerns and ap-plioafone software). on hard or fioPpy d'sks,CÞROMs, lapos, drives, cell¡. data ploøesslrq devhes or any olher repoeitories ofcompüter 6oft"/are u¿h¡ch ere used wifhelecironkully conÎrol¡ed equiprnent. Theterm cornpufer ptogrârns. refened fo ín'lheforegoing descrlption of eþuronic data,msaris ä set of related eledron'rc insfruc-

tions which dlrect the operalions and func-lions of a co¡nputer or davice conneolad toit, whlch eriable lhe compuler or device totoútte, p'rocess, store, relrþve or senddala.

cP 00 3? 04 0? @ ISO Properlies. lnc.. 2001 Page 1 of I




4. Addlt¡onal Govorages

a. ÉtPensesTo Roduce LPss

tn the svent of a covered loss of BusinesslDcome, we wlll pay necsssary gxpqnses

yoo lncür, axcepl lhe cqst ofeflnguishlng a

frre, to svoid further loss of Bt¡shess ln'corñe. The tola¡ of our Pâyment for Busi-ness lncome loss and Expensas to Roduce

d. Ertended BuSr;ress lncome

(1) Buslness lnqome OthorThan "RentalValue-lf lhe necsssary "suspension" of your' 'operallons' produces a Business ln-

como loos palable undor this policy, wewilf pay for fhe actual .loss of Businesslncoine ¡ou íncurduring he period that:

under this Goverage Form (afier applicallonof any Colnswørce penally) lf lhe Erpensoslo Redrrce Loss had not been lncurred- Thisco\rerage doos not hcroase tl¡o Limlt of ln:sufanoB.

The Coinsurance condltlon does not applysnecifically lo such Expense's to ReducoLbss. but-lt b used as descr¡bed aboVe to

detêrmlne lhe totra! amarnl pa]table.

b, C-wllA¡thorltYWe will Pay for the aclual toss of Businesslncome rou sustaln car¡sed by ac-llon of civilauthorhy that prohibils accèss to lhe d+'søibed-premìses due lo d¡róct Þhyslcøl loss .

of or da'¡nags !o propaly, olher than at lhedescrhêd Þrenlses. caused by or f€sultlrigfrom any Coveæd Cause of Loss- Thls cov'erage bã4lns 72 hours aflar tñe llms of hatactJón. añ¿ rull apply for a pøiod o! up lollrree cor¡cscullvs $reeka from lhe dala on

which lhe coverago begins.

c, Alteratlons And Now Bu¡¡dtngs

We wrT pay for the actual loss of Busfness

hcomo yoir sustain due to direct phytslcal

loos or ðarntge sl tha descrlbed promlsescaused by or resdtlng from any CoveredGause of Loss lo:

(lì Netr buildings or sÙuclures, whelher- -cornpteürorundercor¡slrucllon;

(2) 'Altera[ons or addittons to exlsthg bu$d-- -hgporsùuhres:and

f3l Machinenr. equiprnent' supplles or' ' bu¡ldhs ñateriãf locatod on or wlthinr0Otôel of lhe descrbed premises and:

(a) used in lhe conslructlon, alteralionsor addiÜons; or

(b) lnddenbl to lhe occrJpancy of nswÞuIdhss.

lf suctr dkact physhal loss or daroagô de-laræ lhe shil óf 'op€ratíons', the lerlod ofreimnaflon' wlll bogh on the dale "opera'tlons" would have Þegun lf the dltect physl-cal loss or damage had noi occured,

Loss will not bo more than lhe Business ln- on lhe date proPortY (excePt

rebuift or replaced and "oparalions"are resumed; and

(b) Ends on lhe earfier of:

(l) The date ¡ou could restore Your*opefalions", wlth reasonablespeed, to the level $thtch wouldgenerate the bushess incomeamouill that would have exlsted lfno dired Ph¡rsical loss or damage

had oc¿r¡ned; or(tl) 30 consecutitæ daYs afler ths

dale determined in (l)(a) alrov6.

Flowever. Fxlended Businoss tncomodoes not apply to loss of Busfness ln-come.lncured as a result of unfavorablobuslness condittons causod by lhe bn-oact of lhs Govered Gause of Loss Inihe ar"a where the described premisesare localed.

Loss of Bus¡ness lncome must becaused by direcl physlcal bss or dam-age al tlre descrlbed premíses causedby or resplting from any Covored Causêof Uo6s.

(2) l'RsnlâlValue"tf lhe necessary 'sLspenslm' of your"ooeratlons' Droduces a 'Renlal Value"lo.is payable'under this pollcy, we wil,!

pay fõr the actual loss of "Rer¡lal Value'you lncur duríng lhe Peflod that:

(a) Beglns on the date properly is. ach¡-ally repaired, rebullt or replaced andtenanfabllity ís rostored: and

(b) Ends on lhe eadier of:

(l) The'date you could restore lêhantoútupanoy¡ wilh reasonablespeed, to lhe level whlclr wouldgânerate lhe 'Renlal Value' lhal

would have exlsted lf no dlrectphyslcal loss or damaç had oc-cutred; or

(ll) 30 conseculivo daYs affer tho'date delermined in {2)(a) abovo'

,.:,1qo 7 a..9 -.rêtì o.-^r-.ti+< t^- îl'tn' no 00 'j? n.,. q?




Howsver, Extended Bi¡',ness lncornedoos not apply to loss of "Rental Value"lncr.¡rred as a result of unûavo¡able busFness conditbns caused by the Impact oflhe Covered Cause of Loss ln lhe area

wtrsre lhs descrlbed promlses are lo-cated.

Loss of "Renbl Value' ¡nusl be causedby dhec't phpi,cal loss or darnage at the

I(dt The Còøred Gauses of Loss inclu<Je

a vlrus, hannful code or simtar [n-struclbn inlroduced brto or enactedon a computer system (hcludlngelecfionfc data) or a network to rrrhlclr

it is connected. designed to damageor destoy any part of the system ordisrupt ls normal oporaüon. Butthero ¡s no coverage for an lntomrplirrn related lo mar¡iÈ¡lation of a

sultlng from anY

e. lntenuptton Oi Gomputer Operations

11) Under thfs Addfllonál Coverage, elee' ' lronlc data has he meanlng dessibedunder Addillonal Llmllallon - lntenuplbnOf GomputerOPeradons.

(2) Subject to all provislons of this Addilional- -Coverage, you may extend the lnsur-arrce lhat applles to Busfness lncorne to

appty fo a "suspension' of "operatþns"caused by an lnlemlption in computsroperations due to deslnrtion or corruptlon of elecbonlc dala due to a CovoredCause of Loss.

{3) Wllh raspect to lhe coverage provlded- -undar thls Additíonal Coverage, lhøCovered Causes sf Loss are subjact lo¡¡e blloÀ,lnS:

fa) lf lhe Causes Of Loss - Special" Êorm applles, coverage under thlsAddÍlonal Coveragê - lnlerruption OfComputer Operalftrns is limltad to the

'specllled causes of ¡oss'a$ d6fhêdin that form, and GollaPse as se¡

forlh ln lhatlorm.lb) lf lhe Cauæs Of Loss - Broad Form' ' applles, coveÍaga under thb Addi-tibiral Coverage - lntemtPtion OfGompuler Operatìorte lncludes Co¡-lagse as sst brlh ln that form.

fcì lf the Gauses Of Loss Form Is en-'' dorsed to add a Covered Cause ofLoes, lhe additlonal Covered Caussof Loss doeç nol aPPIY to the cover-age povkled under this AdditionalCovemge - lnterruPlion Ûf GÛnputerOPemilons.

tronic dala) by any emplolæe, ln-cludíng a lemporary or leased em-ployeq or by an entity relained byyou or for you lo lnspecl, design, frrstall, ma¡nta¡n, ropai or replace thatsystem,

(a) The mosl we will pay under lhis Addl-tional Coverage - lnlerruptlon Of Corr¡,puler Operatþns is $2.500 for all losssustalned ln any one policy

)raâr,re-

gardless of the number of lntemrptionsor lhs number of preñlses, locallons or'computer syslons hvoþed. lf loss pay-menl relatlng to lhe ñrst ínlonupllondoes not exhaust this amounl lhen lhebalanc,e ls availaHe for loss sus{ainedas a result of subsequent Ínlemtplions lnlhat pollry year. A balance remaining a[the end of a policy year doos not in-crease lhe amount of i¡rsuranco in lhanext pollcy year. Wilh respect to any ln-temJpl¡on whlú begins ln one potþ)r€ar and conllnues or rosults ln addl-llonal loss [t a subsequent PolicYyear(s), all loos ls deemed io be sug-

talned ,n lhs pollcy year in which lhe in-brruptlon begar¡.

(5) Thls AddiUonal Goverage - lntenuplionln Computer Oporalions does not applyto loss susta¡Ded afier tha end of the

þerlod of restoration", even ¡f thsamount of lnsurance stated ln (4) abovehas not been e)ùausted.

5, Goverage Extenslonlf a GoÍnsurance pêrconlage of 50% or more ls¡hovcn in lhe Declaætions, yþu may gxtend fhâlnsurance provldod by fhis coveraga Part asfollors:IÛEtI'LY ÀCOUIRED LOCATIONS

a. You may efend ¡rour Buslness lnoornsCoverage to apply to poperly at any loca-li'on you acqufe oher lhan fafrs or exhbl-llons-

b. The mosl we will pay for loss under hisExtenslon ls t100,000 at each localion.

c9 fi^ Ì? n I fì? ' 'eñ íì.^..â.{t-.? tf .. 4/ ' ' Þ:'¡r¡c 'ì nl I




c. ¡nsuranco under lhis gxtå.*íon for eachnewly acqulred locatlon will end when any ofthe bllowhg f¡rst occt¡rs:

(1) Th¡s pd'xry exp¡r€s;

(2) 30 days o<plre afrer you acquire or beglrtto construcl lhe ProPertY; or

(3) You reportvalues to us.

We will ctrarge ¡ou addltlonal premium br

the propsrly.

Thls Extenslon ls addltional lns¡¡rance. TheAddilíonal Conditlon, Colns¡rance, does notapply lo thls Exlenslon.

B. Llmits Cf lnsuranceThe most tvp wlll pay lu loss h any one oocur-rence ls lhe appllcable LÌmíl of Jnsurance shown inll¡e Declaratþns.

The llmit appllceble to lhe Covorqge Êxtenslon lsin additlon tô lhe Lím¡tof lnsu¡ar¡ce.Pa}mûnts .undsr the followlng Addillon¡l Go'rer-'ages will not lncæase lhe epplbable Llmlt of lnsur'ansol

1. Alteratbns and Nevu Bulkfngs;

2. GivilAuthorltY,

3. Extended Buslness lncoms;

4. Expenses lo Raduce Loss.

C. Loss CondltlonsThe follortng condllþns apply h additÉn to thetomrnon Policy Gonditions and the Gomme¡¡jatProper$ Gmditlons.

1, App¡alsallf we and you disagrea on lhe amo¡nt of Netlncome and operallng oxpsnse or lhe amountof toss, e¡lher may malre uÍltten demand for anappralsal of lhe loss. ln thls event each partyvritl selsct a cornpotent and lmpartlal appralssr.

The twû apprabsrs will selod an umplre, lf lheycannol agióe, élther may request lhat eelecllonbe rûads by a Judge of e oourt having lurlsdlo-.tþn. Ths áppralsers will sfate seParatev lheam€ünt of Net lncome and operathg oxpônseor aÍrotat ol loss. tf they fdl to agree, they wfll

- - - "$¡bmît theír-drfferencas'to tre ¡¡npke. A''deci'sion agreed lo Þy any two wifi be bfndíng. EactlpartYwlll:

a. Pay lls dtæen aPPrabeç andb. Bear the olher erponses of he appralsal

and umplre equallY.

lf lhere b an appralsal, we will slill rehh ourñght to deny lhe daim.

f

2. Dutlea tn the Eùr¡{t Of Lossa. You musl see lhat the'following aro done in

lhs ovantof loss:

(l) Ñotiff the pollce if a larr may have been

brokan(2) civo us prompt nolice of the dlrectphysical loss or damago. lnclude a de-scrþtíon of the property lnvofved.

of fioq when, and where ün dkectphyrlcal læs ordamage occuned.

(4) Take all reasonabla steps lo protecl lheCoverod Rroperty from furlflor damage.and keep â rscofp of your expensesneces¡sary to protect lhe Covered Prop-erly, for ænsideralíon in lhe selUementof lhe claim. Thls wlll not lncrease lheLtmlt of lnsurance. Horavel we will notpay tor any subsoquent loss or damage

reeulling ûom a cause of loss that ls nota r3ovoreri Cause of Loss. Alsq if ieasi-He, set lho damagad property asido andbr lhe besl possble order for examlna-lion.

(5) As ofren as may be reasonably requlred,permìt us to lnsped the prcperþ prorlngthe los¡ or damage and examlne yourbooks and f€oords.

Also þermit us to take sarnplas of dam-aged and undamaged proprly for ln-spec[on, lestlng and anal¡æi+ and per-mlt us lo make coples from yutr bookêand records.

(6) Send us a slgned, sruom proof of losscontainlrç the lnformatlon rro reguest to. lnvesllgate the dalm. Yoü must rlo ülls' wllhln 60 days afler our r6quosl. We wlll

supply yon wilh lhs necessaryforms.(7) Gooperate w¡llh us ln the hvestþallon or

seltlor.nent of tho clo¡m.

ls) lf !,ou lntend to continus ¡Þgr busfness,¡rou must rosuma all or part of yutr nop-

orallors' a¡ quickly as possible.

b. We may otamlne any lnsured under oaþ. .tú[p.not ht.lhe- presence of any oll¡er, ln-.

sured and at such tirnes as may be rea-sonably roqulred. abut any matler rdallngto ürls hs¡rance or the clalm, lncludhg a¡¡

tnourËi's bootts a¡rd reærds. ln lhe ovant ofar e¡ø¡ninallon, an lnsuretl's answers mustbeslgned.

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3. Loss Dstermlnattona. The arnount of Businsss lncome loss will be

determined based on:

11) The Nol lncome of lhe busfness bofore''th€ direct physlcat loss or darnage oc-c¡lned;

We will not pay rf¡dføl¡ arnount of any loss lf lheLlmlt of lnsuranco for Buslness Income Is lssslhan:

a. Tho Cohsurance percentage shown forBusiness lncome tn lhs Declaratlons;llmes

b. The sumgf:(f, ûle Not lncomo (Net Profit or Loss

behre income taxes)' and

L,

lÐ The llkelv Net lncome of lho hrsÍness ll' ' no phyc¡cd loss or dønage -had oc'

buslness due lo favorable buslness con-ditþns caused by the irtpact of lhe Gov- '

ered Cause of Loss on custorners or onolher buslnessss:

{3} The operallng êxpensos, lnduding pay--mfl expenses, necessary to fesume "oP-eral'lons" wllh llþ samo quatity of servícelhat exlsted fwl baforø lhe ditect physl"

cal loss or damage; and{a) Ober relevant sourcès of lnformation,

lndudlng:(a) Your fhancial records and account-

'lng Procedures;

. - (b) Bilts, invobes and other voucl¡ers;and

(c) Deeds, lisns or conlracts.

b. ResumPllon Of OPeratlons

We witl reduce the amoùnt of ¡pur Businesslr¡come loss lo Ú¡e exlenl you cal rssumeyour "opetalhns', ln wholE o¡ in part, byislng damaged or undamaged.property (ìn-

cludtng merchandise østock) at the de'

søibeä Pr€mlsÊs or elseì4'here.

r- lf you do not resume "opela!¡grs ' or do notroöuma'opomllons' as gulckly as possble,rre will pai ¡ased on lhe lenglh of time itwot¡H háve takon lo resulne "opereilíons'asqubHYas Posrible-

4, Loss Pa¡rment

We will pây tur cowrtd loss wilhh 30 da¡æ af-ter ws feólve lhe sworn proof of loss,- lf^youhave complled wilh all of lhe tetms of this'Cor-erage Part and:

s. Wä"ftii,Ë¡"äa*eo aùedrnãr¡i úñh vou äñlhe anountotlocs; or

b. Ær aPPrahataward has been made.

D. Addi8onal Gondltton

COINSURANCE

ff a Goinsunance pøcerrtago ls shoun tr lhe Deelarallons, lf¡e btlowirlg condiÜon applies ln addldonto lhe Corûnon Poliry Gonditlons and the Com-m erclal ProPerlY Gondilions.

lhal would lßety have been eamsd as aresult of sn inc¡ease ln lhe volurne of

èpofìses,that wot¡b have been earnod or lrrct¡rred(had no loss ocatned) by your "operallotìs'àt the described premises for lho 12monlhs followlng lho inceptfort, or lasl prê'vlous annlversary date, of lhls policy(whhherrer ls laler).

Inslead. rle Wtl determine lhe most we wlll payuslng lhe lollowlng stePs:

I, Mullipþ lhe Net lnoome and operatlng e)Pense.

for tlre 12 months followlng lhe inceplion, orbst previous anniversary date, of thls pollcy bylhe Golnsurance percenùage;

2. Dlvids lho Lknit of lnsurance for lhe descrbedprernlses by lha figure delermlned in Step f;and

9. Multlply lhe total amount of loss by lho figuredeterml¡red h Stop 2.

We witl pay the arnounl dete¡mlned h Step 3 orthe llrnlt of insurance, wftlchewr is less. For lheremalnder. you will eltfier have to rely on other lrrsurance or absorb lhe loss ¡oursetf.ln determlnlng operallng expsnsos for üe purPose

of apptying the Cohsurancs oond¡tion,lhe lollowhg expenses, lf appllcabfe, shall bo deducfsd lroítlhe iotal of all oP€ratlng exponses:

'1. Prepaid frelght - ouþoÌng;

2. Relums and allowances;

3. D¡sslot-urls;

¡1. Batl debls;

5. Collection o)<penses;

6. Cost of raw sbck and faclory supplies con'sumed (includlng tansporhlion ctrarges)

-. .' - 7...Gost.of . mercùnndlso sold'(lncludlng -transpor-

taüon cfnrges);

8. Cosl of olt¡er suppltes consumed (¡ncludlns

lransporlation charges)9. Cost of seilces prrcbased forrr oulslders (nolernployees) to resoll, that do nol conlinue undercont¡act;

cP 00 32 04 02 @ ISO Properlies. lnc. 2001 Page 5 of I




Poü/er. heal and refrigeration L,óntgt ülaf d9not contlnue under conhact (if Form C? 15 11

ls atùached);

All ordlnary payrofl expens€s or lhe omount of

payroll exliensã erduded (lf Form GP 15 1o lsatùacÌred) fltd12. Soedal deduclions.for mhlng properl¡eç (mya¡-

Uås r¡nle.ss speciñcally indud€d fn coroage;

1. Maxtmum Pur¡okl ln¿emnity

11-

The Addltlonal CondÍtíon, Colnsuranco,doos not appþ to thb Coverage Form at lhe '

descrlbod premises lo'whictr this OplionalGovanago applies.

The most we w,lll pay lu loss of Businesslncome îs lhe lesser of:

(f) The amount of loss suslained during tha'120 days immedlateþ followlng üte bo

b.

acfuat depleiôn commonty known as úr¡it oroost oeP¡el¡ofl - ¡¡q Pçlw.@¡,øwelfare änd rstlement fJnd charges based onlonnage; hhed lrucks).

Examp¡e No. I (Underlnsurance):

When: The Net ln@me and oparallng expensesfor tho 12 monlhs followlng lhe lnception,

or last previuts annlversary date. of lh'spolicy at the described premlses would

har¡e been $40O,00O.The Colnsurance Percentago¡s' 5s%The Lknlt of lnsurance ls $l5o'oooThe arnount of loss ís $ 80,000

Step l: $400,000 r 5696 = $200,000 (lhe mhl-mum Emount of lnsurance to.meet yourCoinsurance requirements)

Stap 2: $150,000 + $200,0fÐ = J5steþ 3: $ so,ooo x .75 = $80'oF

We rrrdl'pay no more than S60'000' The remahing $20.000 b rrot c¡vered.

Þcampte No. 2lAdequats lnsuranco):

When: Tho Net lff¡me and operafing expoDses'for íP 12 months fotk¡wlng lhe hcaption,or lasl prevlous anniversary date, of lhlspolkry at lhe descrbed premlses would

' havebeen $400,f)ü)The Colrsuranco Percenlageb 50%Tha Llmit of lnsurance is S200.000Tho amounl of loss ls ' 3 80,(xX)

The mlnlmum amannt of lnsu¡ance to meot ¡lourðo¡nsutan"e requirernent ls $200.000 Ql{,000 xroXt. fn"r$re, lho Ltnlt of lnsuranca ln lhts Ex-

- ãrnoíe b'adequate'and'no'penalty'applles:'We will-paúno mo,re ùan $80,cXn (amountof loss)'

E. OPllonal Goverageslf shoì'vrt as appllcable h the Declarallons, lho fol-iourins oPt¡otiãl Goveragas apply separately toeactr ltern.

(2) The Linlt of lnsurance shovYnDecla¡aüons.

2. Monthly Llmit Of lndomnltYr

a. The Addiltonal Condftion, Colneutance,does not apply to lhis Cowrage Form atlhsdescrlbed premlses to ttdtlù lhfs OptlonalCorenage apdles.

b. The most uæ wlll pay for loss of Bushess

lncome ln each perlod of 30 coruseq¡lfvedays after lhe beghnlng of lhe þeriod of' resloralion'ls:(l) Tho Llmll of lnsura¡ìce, mulþlled by(2) The fracllon shown ln lhe Dedaralions

for thls OPtlcnal Coverage.

F:xample

Wtren: The Límil of lnsurancs b $120.000Thefractlon shor¡n ln lha

. Declaallons forthlsOptirnat Coverage ls 114' The mostr,ve ìvill PaY for

loss ln each Perlo! of 3Pconseculive dala ls:$tZb,OO0 x ll4= 990,000'lf, ln thls'examda. t¡eactu4l amouttof loss's. . .'Days.l€()Days3tS0D.a¡B 6l-90

lheln

94O,Ooo-?0,m0

..Eg.a@'s90.@0

' Wowlllpay:. ..-..-.Days.1€0...-.' ,'-$80,000''

'Da¡rs 3l€0 20,000

Da¡¡s61-903O-æ0

980,fi)o

The rernafnhg t10,0(l! h nol correred.

3. Buslnese Incorns Agreed Value

a. Toac{Jvate thls Opl'xnal Govorage:

(1) A Bushess lnoome ReporlWork Sheetnust be submltted to us and must shonflnanclal data for ¡our "operatlmsl:

Page 6 of B @ ISO Properties lnc . 2001 cP00320402 tr




reuc-sfroo ld¡bs-aHeasFeeuato: coh"li,r-;roduct" belng aged, unless tírere ls ala) The Coinsurance porcenl ge- shown Co¡nsurånce percer¡tãge shoun for Business' F¡ the Declarations; niultlplled by tncome in thebedaratlóm'

..

(a) During the 12 montt¡$ølor to the date-'oflheWorkSheel;and

lbì Esltrnated for the 12 months imme' ' dlatoly followlng lhe lnceptlon of lhls

OPtional Goverage.. f2) Ths Dsd¿iratlons must îndhale lhat lhe' Businass lncomo Agreed Valua OptlonalGqverage appths, and an Agreed V3!!¡e

must bõ shðwn in lhe Declarattbns' The

lbì Th6 amount of Net lncoma and oPoratlng expenses for lhe followlng 12

monürs You rePort on the WorkSheeL

b- The Add¡¡tlonal Gondllion, Colnsuranca, ls

suspended untll:(1) 12 monlhs after lho effuctve date of thlsOplional Goverage; or

(2) Tha expirallon dato of thls pollcy;

whlcherrer ocalrs fretq. We will Þlnsbte lhe Addiüonâl Condilion,

Colr¡slranco, automalhaþ lf you do not

subnit a new Work Sheet and AgreedValue:

flì Wilhln 12 n¡onlhs of lhe efiedlve date oflhis OPtlonal Coverage; or

f2) When yor¡ requost a choge in )our' ' Buslneis lnoome Llnnit of lnswanca.

d. lf the S'r¡slness tncorne Umltof lmurance ls

:' ¡or" lhan the ACfeed Value, ws wli no-t9aymols of any loas üran Ûre amount of locsmuþllsd bY.

ll) The Bræinoss lncome'Ltrn[ of lnsur-Ðae; dlvHed bY

(2) TheAqrqedV¿lue-

Þramplo,

When: Tt¡e L[nltof lnsura¡rce'sThs Agreed Value ls

. .- .., .J¡?-qllgql!9f-!e.e:.Þ- -. ---'Steþ (a): $100,00o+$2O0,000 = '50Stap (b): .50 x $8O,ü)0 = $40,000

$r00,000$2û),000S 8o,ooo

wo will Pài$o,ooo. rne rernainlng

$40,000. fs not co\iûed.

('¡4. Þctendsd PorlofuF tndemnltY

Under Parograph 4.4.d.' Extended Buslnesslncom'e, lhe number *30' ln Subparagraphs

fl)(b) ind (2Xb) is replaæd by.t¡e numberÀtiown ¡n tñi Óeclaratlons for ttrls Optlona!

Oovorage.F. Dellnttiona '

1, 'Flnlshed Stock" meãls stock you havemanufactured.

'Flnlshed stock" does not lndude stock ¡ouhave manufactured lhat ls held lor sale on lhepremlsec oÍ any retall oullet Frsured under thlsCoverage Parl.

2. "Operalions'meâns:

a. Your buslnaçs ao'tlvlties occuning at thedescribed premlses¡ and

b. The lenantabllity of lhe descrihed premises.if corerage 6r Br¡stress lnco¡ne hcludlng'Rontgl Value' or'Reilal Value' appllas.

3. "Perlod of Resloralion".'fneans lhe perlod ofllrne lhala. Beglns 72 hourc affer lhe üme of direct

physir:al loss or darnage caused þy or re'lulüng troûl any @ered Cause of Loss atthe described prembes; and

b. Ends on{f¡e earlferoli(1) The date when the ¡roperty al the. de'-.-

scdbed premtsos should bs repalred,

rebullt or repfaced uíth reæonablospeed and sfmllar qualitY or

(z) The dale whsn bushoss ls ras-umed at a. newPermanentlocatlon.

?erlod of reotoralion'does nol indudo any In-creased .porlod requled. dpe tg the enfotco-marrtof anY ordha¡ce o¡þ¡rthat:

ll) Re¡urlates ttuj cinsbr¡cüon usa or rÞ'' paÉ, or rcqulrei tha toartrg dol¡rn of any

Propert)ñ or12ì ReouÞes anv lnsured or olhers lo t86l

--ì'-L' Í6i:hiin¡¡6r;?æiñ''Ð;-'Ëniöf6' iÐnÉîr;'' -

ûraat. døto:dfy or nanlrallzo, or In an¡¿

way raspørd to, or assdss lhe effods of

'Pollubnls'.The s¡çimüon date of ürls poliry will not aIshort hb ?e¡¡od of resloraflon'.

cP 00 32 04 02 @ ISO Properties. lnc.. 2001 Page 7 of I Ð




4. "Pollutanl*" tttn" any soltd, rto'å, g"*tou''.lharmal lrrftant or conftamínanl, lncludng

smoke, vapor. sooÇ fumes. -aqids. alkalfs'

ãiiãrnËap-árd

waste.'Wast¡c includes materials

ió ue req¡rec, roconditioned or reclaimed'

5. 'Rental Value" fnaans Buslness lncoms lhatconsisÌs of:

a. Net lncorne (Net Poflt or Loss bofo¡e ln-corlrs t+e^ç) lhat w9r¡l{ have been eamed

-----õ-Eæii6ãraÞHncorlrfrorrnensn

wu. lncludins falr rontat value olany Portioläiti" aescr¡¡ed premlsos whitoh is occupledof the premlses whioh is occuPlad

byyou; ano

b. Conttrufng normal operating. expsnses

hcuned in connecüon r¡ilth that prom¡ses'

hduding:(l) PaYoll; and

12) The.amounl of chargos wTrlch are the'-' legal obtþallon of the tonant(s) butwõuH otherulse be your obllgalions'

i6.'suspenslon' ma*àIls:

a. The stowdown or cossatlon of your busÞness actlvities; or

b. That a part or all of the descrlbed premisesls rend'ered untenantable, ff coverage fur

Br¡slnees lncorne including 'Rsnbl Value"or "Rental Value' aPPlies. .

o"cuoancy of lhe premises descrlbed in the

óe"fårauon" as ftirnbhsd and equlpped.-by

DPage I of I Þ ISO Progerlies. lnc.. 2001 cP 00 32 04 02




(6) Mectranlcal breakdowù-rrcludlng.-rup- (2) Whelher'õr'.not occurring durlng lhe

luro or burstlng caused Uy c.enirifugal hours of employment.

force. But f mect¡anícal breakdown re' This exclusion doss not apply to acts of de^sults in devator c¡llisbn' we wlll.Pay for skucl¡bn by your emplóyees (lnoludlnglhe loss or damage caused by lhat ele' based empioyeesl but ineh Uy employees

r¡ator collision. (¡rdudíng leased emþyees) ls not corr-(7) Tho followlng causes of loss lo personal ered'

propatt¡¡ t. Volwrtary parlÍng ï/ilh âny property by you

(a)oampnassordrynessofalrnos.oraf¡yoneelsato9om.y.o]FY:."T3"]:9.- -- "j-p¡ersf - ' ' -

-lhe+çope4df-¡'wtt¡certto ¿q-.to ¡y any ".-

{b) changos ln or oxùemes of lempera- Iaudulontscheme' trlck' devlce or false

turg: or Prelense'

(c) Manlngorscra(chins- If;1t*ilåi:lceorslsottopersonalproperty

ili:J:jilfã:(ö'Ti,ü,ii{lffir.äli " îåXffiï¿ "ä#,.i"0Í31''3j."i"3î $,,"ï,]spoglfled cause of loss' or bultdino gl^ass ;ãÈ;i*;lf*ln ã Coverad Cduse of Lossbreakage, we Mll pay for lhg loss or dam' î'ihffi;#;ä';..¡";;--r* *¡n oav fot

"su."'""dîyùi;iËo*lø*ùå,iri#'J: il"TJï"jHråHF:i ff,r:i.åitgor bultdhg glass breakage.

Cot¡se of Lose.e. Explosion of sleam boilorsr- steam plpes,

stiam englnes or sl6a¡n t¡rblnes omed orleased by 1oU or operalad under your-con-

trol. But if oxplælon of eteam bollers' steamplpes, steanr- englnes or stoarn ü¡rblnes re'ãün" ín f,ro or combustlon oxplosion, we willoav for lt¡e loss ø damage Gaused by thatitró or cornb¡sfion explosion We wlll also

oav for loss or darnago caused by or r+buú¡ng frorn lþ orflo{ion ò! g"t* or tuelwühftifie fumace-of any Rred vessel orwitrln lhe flues or Passagðt lhmugh wl¡lchlhe gases of combus{lon Pass.

f. Cor¡llnuous or repeated seopage or leakageóf

water,or tn

¡riesencoor cor¡dsmallon of

humldtty. rnolshrra or vapor. lhat occursover a Perlod of 14 daYs ormoro'

o. Wator. olher liqulds, po*der or molten-mate,ri-a¡ ürat loalie or llo'trs frorn plumbing,

hoatlng. ak condltÍonlrrg or olher equlprnent

{excep:f fire proteclfue s¡otoms) caused byòrres-ult¡r¡g from freodng unless:

(l) You do your best ü¡ malntaln heât ln lhe-buldlng orshwluro; or

f2) You draln he equlpment ar¡d shut off lhe' ' sr.rppV tf lhe hoai ts notrnalnüalned.

' ' Ë'"itlsiìdia,;t t ¡tiäii:täl'åa bi tci¡' ãïj' of vöüi

' "'

oarlners. mornbôrs. olfictrs, mâmgpfs'bmotoYebs (h¡duding teased employoes),

OreAós. Ftlsleos, authorf¿ed mpresen!*'tives or anyono.to wf¡om you enlrust theproperþ for anY Purposc:

(1) Acüng alone or h'ooluslon wllh olhers;or

l, Disclrarge, dlspersal, seepage' mþralion'releaso-or escape of 'pollulants'unless tredlsclørge. dlsperoal, seoPage. migrallon,rsleaso or oscdrpe ls ltsslf caused by any oflhs 'soecified cãuses of loss". Bt¡t lf lhe dls'chargä. dtsporsat, Eesptgs¡ mþrallon, re'leasõ or esôaps of ?ollutants' results in a'specifled ca¡ss of lûss', wo wlll pay fuq-thetoäs or darnsge caused by lhat'speclfledcause oflosg".

. Thts exolusion. 1., does not apply to damageto gÛass caused by chemlcals applled to lhegtass,

m. Neglect of an lnsurad b uso all reasonsble

msãns to save and preserve proporty fromfurlher damage at and åfre¡ lho thno of loss.

3. We wlll not pay for læs or damqgg car.rced byor resüdng' from any of the folbwlng,'3-a'thror¡gt¡ 3.c. But if an excluded causs of losslhat ¡s lastsd h 3'a. lhrough 3¡. resuHs ln aCo¡ered Gause of Loss. we irll pay fø he lossor damage caused by lhat Cwored Causo ofLoos.

a. Wealhen condlllons. But lhls exclusfon onlyapplloo if wsalher cor¡dtllons corttìbute lnaÚ .way .wllh .a .çauso' ot evont.o<cludsd lnPa-ragÌr¡ph l. above to produce lhe loes ordarnagp.

b. Aôts or declslons, lnctudhg lhe fiallure to aclor decide, of any.personr group, orgsnlza'tinn or govørunental bodY.

Cp tal l') 1ì{ î? " lÇ-. P'¡;;.e;(i¿t ir: i:rt1' oaÐc 1 ^f I




(b) Suspeì¡síon, lapse or sancellatlon of-any llcehse, lsase or conhact. But iflhe suspenslon, lapso or cancellatlonis dkeclly caused by lhe 'suspen-.sion' of 'operation*, we will cover

srrch loss ll¡at affectsyour

Buslnesslncome durlng lhe þeriod of restora'.llon" and any oxtenslm of lhe'per'lodof restorallon" ln accordance wiÜr thelsfins of the Þtlended Buslness ln-

-t4Hislntenan

e-Addltional-€ewrage-andJhe *..-of part or al of any property on or off lhs Exlended Period Of lndernnity OpOeöcrifø promises. lional Coveragà or any varlalion of

4, SPeclat E¡<ctuslons these'

The folk¡¡l¡rs provlstons apply on¡y to lhe (5) fuiy Exlra Exparse caused by or resutt-

speciñed Coverage Forms. lng from suspenslor¡ lapso or cancolla-

a- Busrnass rncome_(And Errn Expense) i:Îr"ilpffi;åi;T"iifrthactbe-

Goveragc Fonn, Buslness lncornol

M¡rhour ËJä'É;p"^*i ô,;veiige rorm, (s) Ar¡y other consequenüal loss-'òr E¡<tra Expense Coverage Form b. Loasehold lntorest Govetago Form

(l) Parasraph B,l.a. Odlnancs Or Law.- -doas not apply lo insurar¡ce under lhþCoverage Form.

(2) Wo will not pay for any loss caused by:

(a) Your cancellkrg lhe lease;

(b) Th6 suspenslon, lapse or cancatla-üon of any liconse; or

{o) Ar¡y other consequsntial loss.

c. Legal Llâbil¡ly Coverage Form

(ll The followlng atclusions do not appty to- .hsurance under lhls Goverage Form:

{a) Paragraph B.l.a.' Ordlnancs Or Laur;

(b) Paragraph B.l.c', GovernrnentalAtt¡on;(c) Pangraph 8.1.d., Nuclear Haærd;

(d) Paragraph B.l.o., Ut¡llly Sen¡hes;and'

(e) Paragraph B'î.f., War And Mllltsry*lont

.., ... (4) Any..lncrease.of lqss .caused by Qr.re:...sultlng from:(a) Delay ln.rebuldlng,.repalrlng or re-' '

phc¡ñs ths ProPe¡tY orresumlng

loDenaüons", due lo lnlerfereriæ attttä local¡on of lhe rebrJldlng, rapairor rePlacement bY sbikers or olherpofsons; or

c. Fault¡ inadequate or¿**"L"'l. (1) Plannlng, zøting' devetoPment' sufvey-

ing, sltlng:(2) Oeslgn, specificallons, workrnanshþ.' '

repair, conólruction, renoval¡on,rerno&

ellng. grading, comPacllon;

(3) Malerials used h repair. construotlon,- -re¡iovatlon or remodellng; or

Wo will not PaY [or:

fit Æry loss ca¡sed dlrecty or lndlrectly by' ' lhi falture of poÌv€r or olher ulilþ serv-¡ç6 s¡pplled lo lhe das&ibed prombes,howover caused, lf lhe Palure occursoutçHe of a coverod bulldlng. Failure lp

. cJudes laclr of sulliolent capacity and re'duction ln suPPlY.

But lf lhe failure of polor or other ulilityservica results În a Govered Gause ofLoss. wa w8l pay for lhE loss resulllngfrom lhat Covored Gause ofloss-

(2) Any toss causqd by or rezulting from:

(a) Damago or deslruolir¡n ofIhlçhed

sloclf¡ or

(b) The timo rogulred to reproduca 'Tlr>ishedstock'.

Thþ o<duston does nol apply lo ExtraExpense.

13ì Anv læs caused by or result'¡ng føn' ' d¡rád ohrælcal loss-or

damage to radloor f¡eütsbn anlennas (lncludlng sdellÌtsdishea) and therrieadln wlrlng, masls orlowers,

Page '1of 9 @ ISO Properties, lnc.. 200'l cP 10 30 04 02




(2) The following addilional'#luslons apply'to tnsurance under lhb Coverage Form:

(a) Gontractual LtabllitY

We will not defend anY clalm or

'suit', or PaY damages hat You arelegalþ ttable to pay, solely by reasonof your assumption of llability in acor¡-bac't or agreement. But lhis ox-clt¡slon doos not apply.to a wltten

c. The hlerior öt":vry bulldlng or stn¡ch¡re, orlo personal property in the bulldi¡g orstructure, caused by or ra.sulting from raln,snow, sleot. lce, sand or dust, whetherdriven by wtnd or nol, unless:

(l) The building or slruclure lsst sustalnsdamage by a Covered Cause of Loss toIts roof or walls lhrough whlch the ra¡n,sno,rr, sleet lce, sand or dust enters; or

liabilfty for bufldlng damage results from lhawlng of snow, sleet or iceon lhe bullt$ng or structure.reçultng from an ach¡al or alternpted

burglary or robberY, Provided that:

0l Your assumptlon of llabllity was- -

o<eo¡ted prlor lo lhe accldenì;and

(¡l) Tho buildhg ls Covered Propertyunder lhls Cwerage Form.

(b) NuctoarHazard

We will not deferd anY claim or'sulF, or PaY any darnagos. losgexpenso or oblþallon. resulting from' nuclear reaclion or ndlalion, orradioaclivo conlamlnallon, ho\revercaused.

C. LlmllallonsThe fdlo¡¡lng lÛnilaltons apply to all pol¡cy Forms

and errdorsemenb' unlass olhenvíse slaled.

1: We will ttot pay for loss of or damags to proP-

orty, as ¿ss&¡uø and llmlbd in thls sactlon lnadäilion, we will not pay for any loss lhal is acome,qtience of loss oi damage as discribedand limlted lnthls ssdlon.

a, Steam boilers, steam pìpos, sleam engínesor slea¡n turblnes cat¡sed by or rasulllngfiom anY condlüon or ovenl læHe suchequlpment" But we *l[ psy for loss of or¿ám'age to srrch oqulpmont caused by- orreurluirg frorn an exÞlosbn o-¡ g?ses or ftrel

wilhh úe lu¡rcræ ôf anY fred vessel orwilhln tho fluos or pa$eages lhrough whlchlño gases of oombullon Pess.

d. Bulldtng maþdals and supplles not atlachedas part of üre building or slruclurq causedby or iesulllng from lhefr.

However, thls lfmltatir¡n doos notappþto:({l Buildíng matsrfals and supplles held for

sale by you. unless lhey are lnsured urr'derthe Bullders Risk Coverage Form; or

(2) Buslness lncome coveragô or ExlraExpense coverage.

o Property lhat ls mlsslng, where lhe onlyevldor¡ce of lhe k¡ss or.darnage F a shorl-age dlsclosed on taklng lnve¡rlory, or olhori¡tstances çrharo lhere ls no phyclcal evl'denco to show whal happened to the prop-erlY.

f. Proparty ü¡at has been lransfened to aperion or to a'plac-e outslde lho desølbedþrembes on ths basls of unauthorlzed ln-slrucllons.

2. Wo.vvill not pay for loss of or damaga to lhettowt"ng types of propgrty ur¡less caused by

fhs "spicilled causes of loss'or buldlng glassbrêakage:

a. A¡irnals. and lhan only t lhey are killed orlho¡rdeslruct¡on b made necessary.

b. Fragle artlcles such as statuary, mafbles,cbin-aware and porcetalns, lf broken. Thls' reslrlctlon does not aPPlYto:

(f) Glas$ or(2) Conblners of properlyhold forsale.

c. BuiHers' mactrlnery, tools attd eqrfpment.. çrolç-d.þy ygl¡.pr,eñtrusted lo yot¡, plovided -.

suclr property ls Coverod Proporty.

b, flot water bolers or olher waler heallngequlpment caused by or. resultíng- Qm anycdndiüon or evant lnslde such þ-tlers- or""qtpiiiäfä¡ñ.f-ut"narbxploslon""'

cP 10 30 04 02 @ ISO Properties, lnc., 2001 PageSofg tl




4. The coverage provitied under tr'¡s Limlted Gov-eraqe does noi lncrease lhe appllcable Limlt of

' Insüranca on any Covered Property, lf a par-ticular occunence resulls In loss or damage by'frlngus', wet or dry rol or bgcterla, and- olher

loss-or damage, wó wÎll not pay moro. for lhetotal of all loss or dsmage. üran lhe applicablelJmil of l.nsurance on ll¡e affected CovsredPropefty.

F. Additionat Coverai'c'Èxtonstonsl. Property ln Translt

Thls Extenslon applles onþ to your personalproperty to which his form applies.

a. You may o<tend the lnsurance provided bytrls Coverage Part to apply ø your personalproperty (olher than property ln lhe care,custody or conbol of your salespenons) intnansit-more lhan 100 feet from the de

Property, not caus€d by "frlngus', wet or.dry rotor dactårta, loss paymàìt will not be llmited bythe terms of lhls Umlted Coverage, except lolhe ertent that Tung,rs", wet or dry rot or bacterla causes an lncrease fn lho loss. Any such in-croase in lbe toss wlll be eubiect lo lhe lerns oflhls Llmitei GoveragP.

The lerms of this Limlled Coverage do notlncrease or reducs lhe covorage provldod un-dsr Paraoraoh F.2. (Water Damage, Other Ll+ulds. poúdrår or Mòlten MaÌerlal Damage) oflhis Causes Of Loss Fonn or under lhs Add¡-lional Coveraga - Collapse.

The followlng, 6.a. or 6.b-, appllos only If Busl-nass k¡comé and/or Þtba Expensa aovorageapoltes to lhs descrlbed premlses and only ifttió 'srspensþn' of 'operalioDs* ¡sllsf¡es allterms a¡id condilions of the applicable Busi-ness'lnspms and/or Ext¡a Þçense covarâgefom.a. lf tho loss whlct¡ resultsd ln'fungus", Wet or

drv rót or bacterla does not ln llself neces-s¡tate t "suspensþn"'of 'opefalions", but.sucÙr 'suspeniion' ls necsssary due to loss

or damagäto property caused by 'fungus",

wet or dry rot or bauterfa. lhen our-paymenlunder Bushess lncomo and/or Þ(ha Ex-ponso b limlted to he amount ol loss and/orb¡oense suslalned ln a porlod of not moro

' thån 30 dalt. Tho days need not be con-secrf¡ve.

b. lf a cov€ted 'suÈpenslon' of 'operallons-was caused by loos or damage other lhan'ñlngus', wet ði dry rot or bacterla but re-mo.dat¡m of Tungus', ußt or dry rot orbacNerla prolongs lñe þerlod of resloralion',wþ will òay for loss and/or exPense sus-talned dùins lhe dslay (ragardless of whensucl¡ a delay oca.ns durlng lhe leriod gtrostomtÍon), br¡t suctr covoraqo ls limited to

30 da¡B. Tnb days need nol öe consaculfue.

a motor vehlcle you o$rrìr tease or operatewhilo between polnls ln lhe coverage toni-tory.

b. Loss or damago musf be caused by orresutl fiom ono of lhe followhtg causas ofloss:

(l) Fho, lþhtning, explosloo, windstorm or-bail, rTot or civil commollon, or vandaþlsrn.

(2) Vehkle collision, ,upsel or overturn.Colllslon moans accldenls¡ conlact ofyour vehicle wíth another vehide or ob'Ject. lt does not mean your vehlcle'scrntactwllh lhe road bed.

(3) Theft of an onllre bate, case or packago'by forced onlry lnto a secureþ locÌedbodY or comPailment of lhs vehlcle.Thare must be visiblo marks of heforced onlry.

c. Ths most we will pay fior loss or damagaunder ltrls Extenslon ls $5,000.

Thls Coverage Extonslon le addltþnal lnsur-anco. Ths Addllional.Gondltlon. Cdnsurance,

does notappþ to tl¡ls E<lonslon.2. WaterDamage, OtherLlqulds, Powder Or

Molten flaterlal Damage

lf loss or darna€e caused by or resulttng frqnoovered water of olher llquld, powder or moltenmaterlat damage lóss occurs, we wfl also paylhe cost to lear out and raplace any part of thebulHhg or sl¡ucture ùo ropalr damage to thesyetan or applfance from wftlcfi lhs r,t¡atsr oro-lher subslance escaPes. Thls Corerage B-tenslon does nol lncrease the Limìt of lnsur-

. ..anoo.3. Glasg

a. We wíl! pay for oçenÊes lncuned lo put up-

lemporaiy-plates or boad up openings ifrepak or replacernent of damagod ghss lsdelayetl.

?nat 1O^,,o 4 of Q4. rô1 tì,1. -.aì=q In¡ cD 11 jl Qt 0?




b. We will pay for exponéee 'lñcuned to re-move or'replace obslructions when repair-' lng or replaäng glass lhat ls part of a build-

hó. ffr¡s doe€ nol lnclude removing or re-

Plàcing wln dow disPhYs -

This Cor¡erqgo Extenslon, F.3., does not ln'crease the Limlt of lr¡surance-

G. Deflnlllons

(2) Sinklng dÌ-c'ol¡apso of tand into man-made underground cavilies.

b. Falllng obJects does not include loss ordamageto:

(1) Poreonal property ln lhe oPen; or(2) The lntorlor of a buildfng or sl¡uclure. orproperty Inslde a buildng or structure'unless lho roof or an outsldo ulall of the

leased bY fungl'

2. "SDedfied Gauses of Loss' meåns tt¡e follow'¡nd: Ftre: llghtning: explosion; wlndslorm or hafl;

srñoke; alrcraft or vehlcles; tiot or civil comlno-[on; vãndatlsrn; teakage from lire extlnguishingequipment; slnkhole ællapsa; volcanlc action;faÍirig ob¡eÆ-t6; welghl of sno/v, lco or sleel;waùer damage.

a, Slnkhole collapse rneans þe sudden slnk-lng or ællapée of land lnto urrdergroundempty spaces created by fhe- aclbn of yçteron i¡rñeétone or doþmito. Thb cause of lossdoes not lnclude:

(1) The cosl of ñlllng skìLholas; or

including mold or mildew,-and anymycotox¡ns,spores.-scents or byiroducts produced or re- c. Water demage means accidenlal dlscharge

or leakage oF walsr or steam as lhe dlredresult of the breaklng apart or cracklng of aplumbÍrg, hoathrg, alr condltlonfng or others¡/stem or appllanca (other lhan a sumPsystem includlng lls related equlpment andparts), lhat ls' localed on lhe desølbedþremises and conta¡hs waier or steam.

^Ot.t ..ô n,l nt r tq4 n.. ..r.r.; q In:- .r^^. r.¡.1q I of I




1U-¡+õ-Uü-UU

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT GAREFULLY

EARTHSUAKE AND VOLGANIG ERUPTIONENDORSEMENT

Th'ls endorsoment modinos insufzl¡ìce Provlded under the following:

COMMERCIAL PROPERTY COVERÀGE PARTSTAI\¡DARD PROPERTY POLICY

A. Wtren thb endorsement ls attacl¡ed lo heStandard Proper(y Pollcy. lhe tems CoveragePart and Covùage Form h lhis endorsernsnl aroreptaced bY lhe term Pollcl.

B. This endorssmor¡t appllosÙc

lheCovored

Prooerty ond Goveragos for whict¡ an Earlhquake

- Volcairic Eruptþn L|nlt of lnsuranca ls shown

in Ûre Earlhquake -Volcanlc Erupfnn GoveragoSctredulo orln the Dedaral¡ons-

C. Àddltlonal Govsred G¡u¡es Of Loss

L The fuIo,vhg ars added to he CovoredCauses ofloss:a. Earlhquake.

' b. Votcanb Eruption' meanlng Ure erupl¡on,explosbn or eft¡slon of a volcano.'

Atl Earthquake shocks or Volcanic Eruptlonslhat occui wilhln any 18&ñour penìbd wlllconsüùJt¡e a shglo Earlhquako or Volcar¡lc

Erupllm. The ephallon o{ th's policywill mtreduco lhs 188{ror.¡r Par¡od.

2. lÍ the Earlhquake - Volcanh ErupüonCoverage Sclisdule or ll¡e Daclarallonslndhale üat thb endorsement ooversEarlhquake-Sprlnklar Leakage Only, lhen theGo¡erül Cauies of Loss ln Paragraph C.l. ofü¡ls ordorsemenl do not appl¡ and thefollo¡lng aPPIY lndeaö:

a. Sprhkler Leakage resultlng frorn

, Earttrquaka.

b. Sprlnklen Lea&age raeullhg frøn VolcanÌceiupt m. Volcan¡c EruPliq means treeruúüon, oPloslon or eft¡slon of avolcano.

All Eadhquake thocks or Volcanlc Eruplbns lhatocq¡rwllhin any 168'har perlod wlll const¡lute aslrrgle Earlhquake or Volcanlc Eruption' Theerytratton of trls polþ wllt not'reduco lhe 168-hour Perlod.

D. Excluslons, Llmltattons And Rslatad Provlslongl. The Exchßlons and Llmltalion(s) sectbns of lhe

Causes of Loss Form (and the Exduslonssecllon of the Mortgageholdors Enors andOmissþns Covarage Form and tho SldndardProperty Pol¡cy) apply to oov€ftige provldedwr¿'er thts endôrssrneñt, e:<cept as provided lno¿. and D.3. bdor.

2. To fhs axtont that lhe Earth Movornent E:<clusk¡n

rnigtrt confllct wlth coverage provHod under h¡sendorsunent, lhe Ëa¡lh Movement F¡cluslondoos nol applY.

3. The o<clusion ôf collapso, ln tha C¿uses of Loss'Spedal Form and Mortgagehotders Enors And

O-mbslons Cwerage Form, does not apply tocollapso catsed by Earthquake or VolcanlcErupllon.

4, The Additlonat Goverago - Gollapse. ln lheGauses of l¡ss - Broad Form. Causes of Loss -SDecbl Form and Mortgageñolders Enors AndC.üdsslons Covemge Form, does not epply to lhe

.oovgfago provided undet tttb or¡dorgernenü I.hlsendorssment hcludes covenags' for cotrapsecaused by Ealhquake orVdcanlc Eruptlon'

5, We wlll not pay br loss or damago causeddtrec$y or lndbec-tty by lldaf^ wa\¡e or lsunaml,even i atbibutsble to an Êarlhquake or VolcanicEruptlon.

cP 10 45 08 99 Çopyrlghl, lnsurance Servlces Oñlce, lnc.' f 998 Page I of 5




6. We wlll not pay for loss or oamà1¡ä caused byor resultlng from any Earthquake or Volcanlc

'Erupllon lhat begíns before lha incepllon ofthis lnsurance.

7. The Ordinance Or Lar,r' F¡clusion ín thls

Coveraga Parl conllnues to applywllh respeclto any lõss under thb Coveraga Part lncludìngany loes under lhls endorsamont, unlesgOrdlnance Or Law Correrage ls added by

8. We wlll not pay lor loss of or damago loexterbr ma¡onry veriðer (e¡<cept slucco) onwood frame walls car.¡sed by or resultlng fromEarlhquake orVolcanîc Eruptlon. The value ofsuch veneer wlll not be lncluded in tho valueol Covered Property or lhe amount of losswhen applylng lho ProPertY DamageDeductlble appllcable to thls andorsemenl.

Thls llmltaüon, D.8., does not apply iÊ

a, Tho Earthquake - Volcanlc Eruptlon

Covorage Scl¡edulo or the Declarallonslndicate that the 'lncludirg MasonryVeneef option apPlles; or

b. lsss llun l0% of the lotal oulslde wallârea ls facad wth lnastxlry veneer(oxcludlng slucco).

9. Under lhis Govorage Parl, as set forlh underPropefy Nol Covered ln he Coverage FormU whhf¡ hb endorsemenl ls atlachad. land lsnot ccruered properly, nor Is he cost ofel(ca\ra$ons, gradhg. bacldlling or filltrg.Thereble, coverage undsr lhls endopementdoes nol lndude lhe cæt of rastorlng orremedhting land.

E. No GotñsuranceThe Gotìsurance Conditlon ln thls pollcy,ll any,doee not apply to he coverage provítled underthls sndorsemenl.

Varlous Goverago E¡denslor¡s, ln lhe Cove¡ageForm to wtrlch-lhls ondorsemenl ls atlaohed,requlre colnsurancb. The colnsunanceredukoment for sudl Cworage Êdens¡ons lsellmlnated with respec't to coverage provldedunder tlús endorsomenl .

F, Llmlt Of lneurance

l. Gone¡at tnformatlonThe tem Lfrnlt of lnsurance means tho Llmitof hsurance applkable to Earllquake -Votcarrlc ErupÜon for lhe Govered Property orCore¡aqe under wtllch loss or damage issustalned.

The Earthquake -"volcanlo Eruptlon CoveragoSchedulo or lhe Declaratlons provirCe infonnatlonor¡ lhe Limlt of lnsuance appllcablo to CoveredProperly and Coveragos for Earthquake -Volcanic Eruplion.

2. Annual Aggregate LlmltTha Llmlt of lnsurance for Earlhquake-VolcanlcEruptlon fs an annr¡al aggregate llnit and assuch ls the most rrio wlfl pay for tlre total of afl

Volcanlcwllh ü¡e

in a 12-monlh pedd (startlngof lha presenl annual policy

period), even if lhera ,s more than orìeEarlhquako or Volcanlc Buptlon dudng thatpølod of llrne. Thus, if lho first Earlhq¡rake orVolcanic Erupüon does nol exhausl lhe Limit oflnsurance, lhen he balance of hat Ltn¡t ¡savailable for a subsequent Earthquake{s) orVolca4lc Erupllon(s),

lf a sÌngle Earlhquake or Volcanlc Erupflon (as

delinod in Secüon G. of thls endorsement)beglna during one arnual pollcy perlod ar¡d endsduring lhe following annual pollcy perlod, anyLlmit of lnsurance appllcable lo lhe followingannual pollcy po¡iod w{ll not apply lo suchEarlhquake or Volcanfc Erupllon.

3. lncreased Ar¡nual Aggregate Llmlt Optlon

lf lhe Earthquake - Volcanlc Eruptlon CoverageSched¡¡le or lhs Dec-larallons lndfcale that lhoInc¡sased A¡rnual Aggregata Llmlt Opüonapplle+ then lhe followlng applies lrstead ofParagraph F2. above:

The Llmtt of lnsuranca for Ealhguake -VolcanlcErupllon Is lhe'most we wlll pay ln a slngleEarthquake or Volcanlc Eruptlon (as dollned ln

Sectlon G. of lhis endorsement) for loss ordamage cawed by t¡o Earlhquake or VolcanicEruptlon. lf lhere ls more lhan one Earlhquake orVolcanlc Erupllon ln a l2-monlh perlod (slartingwlh the beglnnlng of the present annual policyperlod). lhE most ws will pay for lha total of allloss or damage $rsùa¡ned dutlng lhat pedod ofUme and ca¡¡sed by Earltquake or VolcanicEruptfon ls tttm tlmes the Ltmlt of lnsuranco.

lf â slngls Earthquake or Volcanlc Erupllon (asdetlned ln Secllon C. of lhls endorsønent)

' beg¡ns durlng onoannuat'polícyperlod and endsdurlng the foltowhg annual policy pedod, anyLlrnit of .lnsurance agplicable to the followingannual policy perlod will not apply to srch

Earthquake or Votcanlc Eruption.

Paga 2 of 5 Copyrlght, lnsurancs Servlces Otrlce. lnc.. 1998 cP104s0899 tr




4. Addttlonal Coverages And' GoverageExtenslonsAmounts payable under an Addltlonalcãveraoo oi iotærage Extension, as set forth

in lhe

-appllcoble Coverage Fotqt'

!oqot

lncrease ih'a Llrnlt of lnsurarce for Earlhquake

-Volcanic EruPliorl'

Llmltatlon

Pavment for Fne ¿amåsó is $40O000 ($500'000

damage capped at lhe diFerence botrr¡een the Baslc

Llmit ãnd h¡r'Éarthquake Lknlt)

. Total Loss PaYment is $800,000.

Þrample#2The damage dm lo Earthguako is $800'o00'

Tho damago due to Firo fs $100,00O

that is Payment for Earlhquake damp1l^ ¡s-$400.000

úrã Oáolarar¡öne), we wlll not p-ay morgr lhan

we wou¡O pãy ln'tho absence of st¡clt Blanket

Úmil- tärerooe, the mo<Jmun amounlna,raUte for any such ltern of property orãoúoas" ls lhe'Llnlt of lnsurance or statedvluÁ fäg shown tn a Statement of Valuss on

lito wiüì us) speclflc to üral ltorn of properly or

"ovemgu íor'Covered Gauses of Lossofher

than Eãrürquake - Volcanio Eruptlon'

6. Ensulng Loss

tf a Cause of Loss (sudr as fire) ls covored by

me-*ç of an excepiion to lhe Earth MovementE:<cluslon, ln lhe'Gauses of Loss Form, wewflJso pây for lhe læg or damage caused.byittat ottrar'Cove¡ed Cause of LoEs' But the

"rostwa w¡lt pay. for ths tolal of all losa or

ã"mãu causä by he Earllquako, Volcanlc

ftupUb and otheiGoverod Gauso of [oss, ls

lhe'Umitof lnsurance appllcable b such olherCõve-red Cause of Losó. We will not pay lhe

sum of lho tv¡o LÍniùs.

E:XAIIPLES

-ENSUING LOSS

Tuo examples follow, uslng ttrese^fâs{s:..Thecommorcial' Property Coverago Par[ ln theso

;ñbr. lndudäs ího Gauses of Loss - Baslc

rorrl-rwli¡on covârs llrÐ ãtd ürts Earthquake -Vãiänù:' Èrupuon Enddrsernent. { buil-dþg ls

õ;aoã ¡l'earthquaþ. and bv Flre wh$t ts

ca,i;-å- Ñ-the Eáürquake. The valus of tho

ãã*-isid '¡u¡td'ù\c ts û1,ooo,oo-0. The..Lknit or

nsüAca àppncoó¡e to lho bulldîng'.br-lhe Baslc

Caues of löås, b $800'000. The Umlt of-lnsurancêforËarnquafe - vohar¡lc Eruptbn ls S400,000' Thê

Èarrtrqr¡ake Deducliblo amouril ls $5fl'Oül'

Exdni¡ilo JfThe damage dueto Earlhquake ls $500'000'

Tlre damago due to Flre ls $600,000'Paymont tor Earfrquake ¿qqpq9^ls-$4ü)'@0iSrín.ooO damagp minus $50,000 Eailhquake

à"o-rrJri¡n = $450.000; Lirnl ìs 9400'000)

Blanket Limlt on Eann$leKe - volcanlcErupt¡on (as shown ln lhe Earlhqake -Volänb Èruptþn Goverage Scl¡edulo or ln

deduc-lible = Llmtt ls $400,000)

Paymenl for Flre damage fs $100,000 (amount ofdamage)

Total Loss PaYment b $500,000.

G. Property Damago Deductlble

1. The províslons of Sec{on A,2. ol lhisendorsembnt are appllcable lo all CoverageFmns excePt

a. Bustness tncome (At¡d F¡l¡a E:<pense)Covenage Forrn;

b. Buslness lncome (Wlthout Extra Exponse)Coverago Form;

c. Exha ExPanse Coverage Forrn.

2. The Deductlblq if any, ln this Govenage Part isrsdacod by the futloring with respect toeàrhqualto and Volcanlc EruPtion:

a. All Pollcles(f) The Deductble por¿Þ¡qns apply to each-'

EarlhquâkoorVoloanlc EruPtlon-

(2) Separale Deductbles are calculated for,.-anð apply to eaclr blllding,- personalproperty àt eacl¡ buitding and..qersonal

br"ir"rli ln lhe open. Deduclibles aroäepara[elycalculated and applied svon lÊ

(a) Two or mora bulldttgs suslain bss ordamage;

(b) Personal ProPêrtY ¡t two ry more' -bulldhgp sustalns loss or damags;a¡d/or

(cl A bulldlns a¡rd lhe pereonat propertyh' -lhal building susliain lcss or damage,

(3) We will not p?y- for loss.or damage t¡¡lil' the. amm¡nt-of loss or damage a,rceeds'lhe appllcablo Daduct¡blo. Ws wlll Û¡enpay d¡ô amount of loss or darnago lnäxóass of tlrat oedüctlble; up to lhe

appllcable Umlt of lnst¡rancs.

cP 10 45 08 99 Copyrþh! tnsurance Sewìcas Ofiice, lnc.. 1998 Page 3 of 5 E




(4) When property ls coveÈô under lhe' - Goveraþ Êxlension for NewlYAcr¡uhed or Conslructed Propert¡¡ lndetorminlng lhe amounl, lf any, lhat wewlll pay for loss or damage, t¡ve will

deduct anamounl oqual

toa

percentago of the r¡¿lus of the propertyât üme of loss. The aPPlícablopercÊnlage for Nowly Agquhed orôonsùucted Froperty ts lhe hþhest

However:

(a) lf the rnost recent Report olValues showslass lhan the fufl valus of the propsrty onlha report dales, wo wlll determlno thedeductble amount as a percentago of lhe

fu[ value as of lhe report dates.þ) lf lhe first Report of Values ls not flled withus prlof b loss or damage, we wlltdelermlne lhe deductÉle amount as a

Votcanic Erupllon Coverage Scheduleor in tho Dedarallons forany descrlbedpremlseo.

(Ð ¡f tlere ls loss or damage czused by-Earlhquaka or Volcanlc Eruplion, andloss or damage caúsed bY a Cause ofLoss (e.9., llre) llul b covered bYmaarltt of en o<ceptlon to lhe EarthMovement Érduslon, thon the onlYapplicable Deduclible provlslons aro

lhose stated ln thls endoresmenl'b. Calculatlon Of The Deducllbls-

Specfllc lnsut?nce Other Than Bu¡lderçRlsk(l) Proporty Not Subfect To Value

Reporllng Forms

ln delsrmlnfng lln amounl. lf an¡ lhatwe wtll pay for loss or damago, we wllldedt¡ct an amounl equal to apercentage (ae shoùrn ln heÊarttrqt¡ate Volcanlc EruPtlonCove¡àge Súedule or in heDoc{araÛons, oorrcernlng ' lheEartrquake Volcar¡h EruPtlon

Deúldbb) of tho value of lho proportylhal has sustalned loss or damage. Thevalue to bs t¡sed ls that shorn h thomæt re¡ent$tatement of Valuoc on llewlÛt us.

(2) Property SubJectTo Value ReportlngFoflnsln doletmlnhg lhe amornt, if an¡ thatwo wilt pay for toss or datnage' wo wllldeduct an anounl equal to aporcentage (ag shown ltr tàe

. Ib.rlh.quake Volcanlc EruPtlotrGovemge Scheduls. or ln lheDodan¡tloDs, concemlng lheEarthquake Volcanla Eruplbn

DodudüUe) of ú¡e value of tre prçertyItpt has sustalnod loss or darnago- Thevalue to bo used is he lalest valueshown in lhe mosl rscsnl Roport ofValües on lils wllh ue.

reoenl Stalement of Vatues on fllo with us.

c. Calculaüon Of The Deductibls - Blankstlnsuranca OtherThan Bulldors Fl¡lc(l) Propàrty Not Subfect To Value

Reportlng Formsln detomlnlng lhe amount, lf an¡ that wewill pay for loss or damagå, we wll deduo.tan amot¡nt equal to a percentago (assltown h lhe Earlhqualce - Volcanlc

Erupllon Coverage Scfiedule or hü¡e

Doclarallons, concorníng lhe Earthquake- Volcsrlc Êruptlon Deduc{lble) of thovalue of lhe property that has sustahedloss or damage. Tho rralue to bo used ¡B

lh¿l showì ln tho most recent Slalemontof Values on fils wlth us.

(2) Prcperty Subfect To Value ReporllngForms

ln deleminhg lhe amount, lf any, llrat wewiû pay for proporty lhat l¡as sr¡slahedloss or damago, we will doduct an amou¡tegual lo a porcentage (as slnwn fn thoEailhquake -.Votcanlc Êruptlon CoveragoSctredule' or Ur lhô Declaratlons,

concernlng the Earlhquake - VolcanicEruptlon Daduclibta) of lho volue of thatproper$ as of he llme of loss or damage.

d. Galculatlon Oitho Deducllble - BulldersRlsÌ lnsuranco(l) Bultderc Rlsk OtherThan Reportlng

Form

h detemhlng lhe amounl, lf an¡ lhal wewlll pay for prçaty lhal has susùaìn€d' loss or darnage; r,tre wlll deducn an a¡nounlegual to 6 pefcentäge (as sttovm ln the. .Eølhquaks -'Volænlc Erupllon CorerageSct¡edule or ln lhe 'Dedaraüons,

concemlng lhe EarlÌrguaks - Volcar¡ÍcE¡t¡pllon Deducllble) of lhe acù¡d cash

vah¡e of that property as of lhe tlme of. loss ordamage.

Page 4 of 5 Copyrighl, lnsurance Services Oñico. lnc., 1998 cP 1045 08 99 tr




(2) Bulldors Rlsk RePortlng*Êorm

ln delermining the amount lf any, lhatwe will paY for loss or damage, we wtrldeduct an amounl equal to a

Derconlage (as shown lnthe

Ëarthquatce Volcadc EruPlloncoveràge Sc-lredule . or ln lheDeclarallons, concemlng lhe

For thls exampte, assì¡n'e {hat the amounls of lossdo not exceed lhe applfcable Llmlts of Insurance (forspecllic lnsuranco). Also assume lhat tlre tolalamount of loss does not excsod tho applÌcableblanket Limll of lnsuranca (for blanket insuance).

Buildtng #l and Businoss Pe¡Èonal Property atBullrtlné #1 have subtalnèd damage; the amounts ofloss are $gg,0oo (Buildlng) and $5,000 (BuslnessPersonal Pmperty).Earthquake Volcanlc EruPtlon

thal has sustslncd loss or darnaga. Thevaluo to be used ls tho actual cashvatue shown ln lhe mosl recent Reportof Values on lllewlth us.

Hot¡'rgver:

(a) lf the most recent Reporl of Values' shows less than lho actual cashr¿aluo of he ProPôrtY on lho roPorldate, wô w¡ll detarmine lhe

deductibto smount ss a Porcenl,ageof the aotual cæh valua as of lherePort dato.

(b) lf ltla fi'rst Repod of Values ls nol' ' filsd Yrlith tts Prlor to loss or. damago, we wlll determhe lhe

deduc-thle amounl as a Percenlageof lhe aclual cash value of lhspmpertY as of lho time of'loss ordamage.

H. Example - Applloatlon Of DaductÞlo lnG.2.birt ¡nd ê.2.c'(r) - For Speclllc orglantót-hsurancE Othsr Than Bulldors Rlsk(Not Sublect To Value Reportlng Forms)

The rralues, as shown ln lhe mosl recenl

Statementof Values on lile with us. €¡r0:

Buildlng #1 S50O,00O

Bulldlng f2 S600,t¡{,O

Business Personal Property at Bulldlng fl$250,000

Businsss Personal Property at Bulldhg #2

$250,00o

Buildlng

step (r): $s00,000 x lo9( = $50,00o

slep (2): $95,000 - $5o,oo0 = $45,000

Buslness Personal ProPertY

step (1): $250,000 x 1096 = $25.000

The loss, $S,OOO, does nol excoed t¡e deduclblo.

The most we will pay ls $45.000. The rernaìnder of

üra bultdlng !oss, $50,000, ls not coverod duo toappllcallon of lhe Deducllbls. Thore ls no losspaymant for lhe buslness personal ptoporty.

l. Buslness lncome And Edra E:tpensa Po¡lod OfRestoratlon

Thls Sectlon. 1., is applicablo only lo üre CoverageForms sPeclfled below:

l. Buslness lncome (And Bdra Expense) CoverageForm;

2. Buslness Jncome (Wttlpt¡t Þ<Ùa Þ<pense)Goverage Form;

3. Exl¡a Þpense Coverage Form.

The 'þelod of mstonallon" deflnìllon'st¡ated h lhêCovelãge Fonn, or h any endorsement arnendlng

the beghnhg of lhe þêrlod of restoratlon", appllæto each Earthquako or Volcanic Erupllon. A slngleEartrquake oi Volcanlc Erupllon is deflned inSoctlon G. of ütls endorssment.

ucP 10 45 08 99 Copyrlghl, lnsuranco Services oñrce, lnc', 1998 Page 5 of 5




OMMERGIAL PROPERTYcP 10 65 10 00

THIS ENDORSEMËNT GHANGES THE POLIGY. PLEASE READ IT CAREFULLY.

FLOOD COVERAGE ENDORSEMENT

-TnF:ñalörsem'enffilfMrsurancrprovldeùunder{hefelowln

COMM ERCIAL PROPERTY COVEFÂGE PART

À When lhls sndorsement is altact¡sd to llieStandard Properly Pollcy, lho terrns Coverage

Pad and Covórage Form ln thls endorsement are

rePlaced bY ttre term PollcY.

. B. Ttt¡s endorss¡nent applles lo the Coverod- - pióoeÍv and Coveragéi for wt¡ìch a Flood Llmltof ínsu-rarce b shown ln lha Flood CoverageSchedute or ln lhe Declarallons.

G. Addltlonal Goversd Gausa Of Loss

The followíng Is added to lhe covôred Causes OfLoss:

Flood, moanhg a genoral and te.qporary-

"on¿ii¡onof parttal or-conrplele lnundatbn of

normally dry land areas due lo:

1. The ovellow of lnla¡rd or üdalwalers:

2. The unusual or rapid acanu¡lallon or runofi ofsurface waters from enY source; or

3.Mudslldes or mudllors whlctr are caused by

- fl"odf"S as deffned ln C¿. above' For lhapurPose of ürls Cowred Cause.Of Loss, a

Lruüsilda or mudflow hrrolves a *ver of llquldãn¿ lov¡r¡g mud on lhe surfiace of normallydry hnd aieas as when earlh ls canied by.a

"uirentof wator and deposlbd aþng ths palh

of lhecursrilAll floodlng ln a cor¡lfnuous or þmlracted event

wÜt constlülte a slngle llood'

D. Exctuslons, UmlÞllons And RelatedProvlslonst. rr¡e Þ<cluslons aná umilaüori(s) iöôtióhs ót'-

tte C"rse" Of Loss Fom (and the Excluslonssectíon of lhe Morþageholders Êrors And

ombi¡ons Coverage form andlhô Slandard

Propeûy Potþy) apply to æverago prwldeduno'àr tt¡lg endi¡ise-meilt except ar provlded in

D.2. and D.3. bolow'

2. To the extont thal a part of lhe WalerExcluslon mlght conlllct wllh coveÉgeotw¡¿uc un¿eithfs endorsemonl, t¡at part ofihe Water Excluslon does not aPPþ'

3. To the extent that a tsunami causes the overflowof tldal walers, lhe excluslon of earlhquake, inthe Earlh Movement Þ<duslon, does not apply'

4. The Ordlnar¡co Or Law Excluslon in hisCovarage Parl conünues to apply wilh respect loany losé under lhis Coverago Part lncltrdlng anyloss under lhls endorsernent, unless OrdtnanceOr Lnr Coverage ls added by endorsernent-

5. Tho folo¡¿lng excluslons and limitallons a¡eadded and apply to covorago under lhlsendorsemenl:

a. We wlll not pay for any toss o1. dap9¡gcaused by or-resultlng from any Flood hatbeglns bófore or wiÜrln 72 t¡ours añer lhelncaotlon date of thls endorsement. lf ¡ouräqüsst srù we provlde an høease ln thestrite¿ t-lmit of

'lnsuranca ior Flogd, lhohcrease wlt not apply to loss ø darnage fromany Flood lhat beglns beforo or withln 72

hoirns afler Your reguestuæs made.

lf lhe Flood ls dtre to lhs overflo$, of lnland orlidal walers, then lho Flood ls consldored tobegh when tho water lïrst ovêrflows ltsbanks.

b- We wtrt not pay for loss or damage causod byor resutÛn!

-tomdestabllÞation of þnd

arlsìrng fom ne accurnulalbn of watar lnsubzurface land areas.




c. Under lhfs Covorage paÛÉs sel forthundsr PropertY Not Covered ln lhe. Coverage Form lo t¡/hlch thts endorsemenlls atlached, land io nol covered proporty.

¡ror is lhe cost of excavaüons, gradlng,'backñllÌng or filllng. Therefore, sovsrage

under {hb' er¡dorsement does not lncludelhe cost of restorhg or rernedíallng landú¡e to he collapse or sinklng of land

f. We wilt not pây'lol loss or darnage caused bysewer back-up or overllow unless such back-up or overllow resulls ho¡n Flood and occurswithln 72 hours afler the flood recedes.

E. Add¡tlonal Goverages And Goverage Extensfons

L Wllh respect to Flood Coverage. the DebrlsRernovat Additional Govorage (and anyaddlüonal lfmlt for Dehis Removal under a LimltOf lnsurance dause or an endorsemørt) ls not

caused by ot resultlng from Flood'

. endorsement includes damage lo lhecovered port'lons of lhe bulldlng and locowred

'persoml proporty, caused bycullapso or slnklng of land along lhe shoreof a body of tvalor as ll¡e ¡esult of eroslooor ur¡derminlng causad bY waves or

. cunenls of water whlch exceed lho cycllcal

lsvete and cause Flood.

d. We do nol covsr loss or damags by Floodto personal property ht tho open except to

lhe sxtsnt úat sudr oovefttge. if any, lsspecifiod ln lhe Flood Coverage Scheduleorh lhe Declarallons.

e. Proportv Not Govered, ln tlre CoverageForin io whlcl¡ lhts endorsernent lsattactred, ts amendod and supplementedas follouæ wlth respocl to Rood Coverage:

Itì Prooertv Not Cove¡ad hcludas any' ' bu¡ùhfi or other property lhat þ notelioible for llood hsurance purcuanl lo-lhõ provlstons of the Coastal BanierResóürces Act 16 U.S.C. 3501 at aeq.

ar¡d tho Goashl Banter lmProomentActof 1990, Pub. L- 101'õ91,'toU.S.C.35{llstseç

(2) Properly Not Covered fncludes boat' ' ho¡ees-and op€n slruGturos, and anyproperly ln or on the foregoirng. lf theätnictu¡à is located on or over a body'of

water.

ß) tf bulkheads, pllings, plers, wharvos'' ' docls, or retahlng r,valle that are notpsrt of a bulldlng. have boen temovediiorn Property Not Cowred and addedas Covâed ProPattY bY seParaleendorsernent. lltls Flood GwerageErxlors¿ihéht do'ec not apply lo strch

PmPorty.f4) The bllowlng are r€¡noved frqn- -

PropsrtY Nol Covered and ars. lharcforeCoverodProPerlY:

fal Foundalfons below the lowoslì ' basement foor or lhe subsurface of

the ground; a¡td

(b) Undergrornd PtPes, llues anddrains.

DEBRTS REITIOVAL

a. We wlll pay your exponse to removs debris of, Covered Properly and othor dobds that ls on

lhe descllbed premises, when sucJt debds bcaused by or results ftom Flood. Howsvsr,we wlll not pay ùo remove deposils of mud orearlh from the grounds of lha descrlbedpremises.

b, l/l/a wlll also pay lhe €xpenso lo remoædobris of Covered Propotty that has lloated or

been húrled off the described promlses byFlood.

o. Thls ooverage for Debds Rermval, as selforlh ln E.l.a. and E-i.b. above does notlncrease lhe apptlcabto Llmll of lnsurar¡ce forFlood. Thareforg lhe moslwe.wlll payfor lhetolal of debrls romor¿l and loss or damage toCovered Propsrty Is lhe Llmil of lnst¡rance forFlood that apPlles lo lhe Cowred Properly atlhe afecled dessibad premlses coveredunder this endorsemsnt.

2. Wlh respect to Flood @verage, lhe CovelageEúenslon for Newly Acquírod or Gonst¡uctedProperty Is anrended by addlng Ün followlng:

a. Wth rcsp€ct to Flood Govoragq thlsCoverago Édension does not apply to anybufidhg'or slruclurs lhst b not fully enclosedbywalls and rcol

b. Wlth respect to É bultdlng or slrucfurecovered ún¿er t¡tç Covsr.ago E¡<tonslon, lheamounls of covorago staled h lhe Co¡sragoF¡dens¡on do not apply to Flood Coverage.lnstea{ lhe ¡¡rosl ¡r¡e wll pay for all loss ordamage to property covc¡ed under lhlsCoverage Þ<tènsbn ¡s 10% of the total of allL'mlls of lnsurance for-Flood Coverage asprovidod urder thls ondopomenL Suchôowrage doas nol increass ü¡e' Limlt oflnsurance for Flood,




3. with respect to any ,pptio'ne' Additional lf the L¡mlt of lnsurå'rrie and thø AnnualAggregate

Govorages und-cö.í"iã'ätenilons ln the amount are lhs same, or if lhere ls no arnounl

Coverage rorln io u,tr¡d thls endorsemänt b slated as an Annual Aggregate, then the Llmll of

attached, onei'ùan-i¡rooó-aøressø

in È.t. tnsurance ls the most we will pay for lhe tolal of.all'and EJ.

"Uo*,äåunrc'puy"uroun¿ui tu"t loss or darnagg lh?! ls c?llsçd by Floop ln Vl.z'

oher provlstons, as set forth theroin,ão nôi monlh poriod-.(çbrtlng wlth..lhe baglnnlng of lhe

¡ncræse lhs Uüi¡õi ¡ñiurance for Ftód. preseniannualþollqy Figd)'even lf lhere ls moro

F. Goinsuranco "r"v"r'vv'F! m."frîffifi:"ñ",fif#ii:gT"i$åili1,gl. The Cokrsunance Condltlon, if an$ ln the appllcable L¡m[ of lnsurance, lhen lhe balance of

--:öU*Uiãjeot¿"rage-Form+pplles-loJha'------aiiþHmlþlsavaltablefepasubsequenlEloodcoverage provlled-under lhls endorsemenl, lf a slnqle occurenco of Flood boglns dudng oneunless-fnó No-Colnsurance opllon,-ln ll9 äiiiîËõ¡ãroðioo-ãnã"noiuudñgüefoüõwhg

ffi,x,nlií3$",H$TJl?"J:*iïL",,x: ffiHîx',"Bn"',o",Î:"lllr;'*x""åilffi,,iåz. Varlous Govorage Exlensions. ln tho .annual pofcy per¡od wlll not apply to lhat Flood.

tr#'ffi: iii'ågl*H#iiß"iË 3' En-surngloss

coimur¿ncotä"ptròî"ïà-¡r,i-r" "t¡ãn ne In lhe evenl of covered ensulng loss, for example,

coinsurarce ,"írüäî*fiö'-etj"n óãvsrãgå toss. caused by Fhe, {plosbn and/o-r spñnkler

Exlenslors [ç ellmlnabd. Leakage whlch resutts jrgm-tlrc Flood' the most

G. Ltmlt of lnsurancowe vr¡[ pav. for lhe lotal of all loss or damage

1. Genemilnrormailon #åË.ii flït"$í';tiäSåil"äri,,üiËi{Flood cove¡ago may be wrlden- al a .Llmlt of Rre. úé wil not pay lhe sum of lho Flre and Flood

iÑut*c" ÛraÏÏ-õéuã r or less than ho thnius'

ir¡'n¡t of hsurance whfch epplles to olher EXAI¡IPLES-ENSUINGLOSS

ff gi*,"Tl"Xî,3|Stli;län5BnÏ*"'Iffiffi tlãåîilË;ä1l',iff *H'oB:':ffiffiiiliThe Urn¡t of lnsurance for Flood ls shom.ln Caússs of Loss - gaslc Form (wtrlch cgve¡s ll-re) and lhlsrË ã"ù Cãvárasa Schedule or ln .lhe Floó¿cove.ag" EndorsemenlA building ls damag-ed-by

ueda¡at¡ons. tf sud Umit ls not shown, then FiõóO ãn¿ uf Rre whldr ls caugd by_lhe Flooù fiet¡ll_tmlt app[cablo to Flre also applies to valr¡eofhedsnagedbulldtng-ts$1,000,000.ThoLlmltofFlood, lnsuanco applicabio to tho buldln-g, for lhe Basb Gausss

2. Áppllcatton OlllmltAnd Aggregato' óf loss, þ óóOO'OOO' The Llmlt of lnsurance br Ffood ts

rhe Límlt or Insurance for'Ftood Is lhe most y::::::* Fiood Deductlbþ anountls $5'000'

,irå-un¡ p"y¡n äãldiã "*.ri¡ence of Flood for EKAÍi/IPLE #rbil;'¡ri"ase caüsed by lho Flood. lf lhere The damage dr¡e to Flood ts $500,m0. The damago dtrls mo¡s lhan one Flood in a l2'monlh per¡od to Flre ls S500.00O.

tr$"#ü#tpt"ff ryti*ifri'åäil'"1lffil.Ti,tl8.t3,ffiit"#"ffi:s'gg',$fff¿iffidurlng that perhd of tlme øtd'gaused by :"--':--"Ftood ts ttro ämount lhat ls ldenüñod a" U.ó Paymg!ìt p.r Fqg--damagq is.$400,0o0 ($5p'!pg.daqq9"

A'rura¡ eggröËi;-Eü. ã ll;h"um t ihô ca-ipg-at.ge differencó between lho Basþ un¡lt and lhe

Flood cotãtuga Schedule or the Flood Lfnft)

Declarallons. Total [oss Payment ls $800,000.




EKAMPLE#2

The damags due lo Flood ls $800,000. The damagedueto F[e is $100,000.Payment for Flood damage ls $40Q000 ($800,000damage ¡nlnus $5,0(X) Flood eteductlble = S795O00;

Llmlt ls $400,000)Pâym€nt for Flre darnage ls $100,000 (amu.tnt ofdamage)

However, lhis Prov'srdn 1.1. does not apply underthe followlng circumstances:

a. At lho time of loss, lho property ls eligible tobe wrltten under an NFIP policy but suchpollcy ls not ln affect due solely to heligib¡rity

of lho property at lhe lime lhis FloodCoverage Endorsement was written; orb. An NFIP pollcy ls nol ln effect because we

have agreed to write lhls Flood Coverage

Noter These Examples are glven only to lllushatelhe sltuatlrn of flood and ensuíng loss. Thereforo.the loss pa¡anenl sfated for flood darnage does not '

address lhe situat!¡n where anolher pollcy alsocovers ths flood damage.

H. Deductlblel. The Deducllble for covaraga provlded under

hls endorsement is the Deducfibls appllcablelo Flood as shovm h lho Flood Covarage$clredule or ln lhe Declarations.

2. We wlll not pay lhat parl of the loss lhat Isatbibutable lo any Deductlb(s) ln theNadonal Flood lnsurance Progliam policy.

3. tf Flood rest¡lts ln anothor Coversd Cause ofLoss and ¡f bolh Coverod Causes of Losscause loss or damagq lhen only the highordeductlble appñes (e-9., lho Flood deductlbloor lho Flre deductlble).

l. Otlrer ln¡urancsThe Olher lnsurance Commerclal PropedyCondltlon ls roplaced by tre tullowlng wilhrespect lo the covenage provlded undor thlsendorsemenl:

l. lf the loes ts also covered under a NallonalFlood lnslrance Program (NFIP) pollry. or ltlhe property b elbble to be w¡itten under anNFIP potlry but there ls no suc*¡ pollcy lnefÞct, lhen vre will pay only fûr lhe amot¡nt cfbss in sxoess of tha maxfmum tlnüt ünt ca¡¡be lnsured under thst pollcy. Thls pmvlslonaoolies whelher or not lhe mÐdmum NFIPlfniit was obtolned or malnlalned, and whelheror not 1æu can collect on tho NFIP po¡lcy. Wewlll not undor any drcuRslancss¡ Pay morshan the applirable Ll¡nlt of lnsuranca forFlood .as sbted ln lho Flood Gororage$chedule or the Declaratlons of lhls CovoragePart.

coverago. There is such an agreernent only iflhe Flood Goverage Schedule or lhe

Declarallons indicate lhal lhe Undedyinglnsurar¡ce Walver apples.

2. lf lhere ls olher lnsurance covedng the loss,ollær lhan lhat describsd ln 1.1. abore, we wlllpay our share of the loss. Ou share b theproporlfon thal üre applhable Llmit of lnsurânceunder lhls ørdorsement boars to lhe lolal of theappllcable L¡mlts of lnstrance under all olher

euch lnsuranco. But we wlll nol pay more lhanhe appllcablo Limlt of lnsurance shted in th.eFlood Coverage Sùedule or lhe Declarallons ofüls Goverage Part.




THIS ENDORSEII.IENT CHANGES THE POLICY. PLEASË READ ¡T CAREFULLY.

OCCURRENCE LIMIT OF LIABILITY ENDORSEMENT

The following terms and conditlons wlllapply to this policy:

1. The amount of lnsurance shown on lhe face of this poliqr is an amount peroccurrence. ln no evenlwlll the liability of lhb Companyexcaed this arnount lnany ono covered loss, disaster or casualty, irrespective of tho number oflocatÍons involved,

2. The premium for this poticy ls based upon lhe Sl¡afement of Values on tilÞ wilh'the Company. ln the event of covered loss, llability of the Company shall be

limited to the least of the following:

(a) the actualadjusted amount of covered loss, less appllcable deducllble(s[

(b) for covered loss sustained to any sBecilicallyscheduted ltem orelernentof coverage, as scheduled ln lhe most cunent Statement of Values on fllewlth the Company, 100% of the individually stated amount for eactrlndlvldually sdreduled ltem or element of coverage, less appllcablededuc{ibles. regardless of any referenco to Eury sum total amount ofspecifically scheduled ltems or elements of coverage by locallon as maybe llsted or contalned in the Süatemenl of Values.

(c) the Llmit of Liability or amount of insunance shown on lhe face of lhis

pollcy,less applicable deduclibles (s).,

All other tarms and condllions remaln unchanged.

All other terms and condltlons remaln unÔhangod. Aulhorlzod Representatlve

ACE0ô3 (0.il5)




-¡cY. PLEAsT Ëeao trcAREFULLY.

nsee3loS MATERIAL ENDORSEMENT

Thìs policy doos nol insure loss or expense resufllng from:

f,Tfuil_@mmollon, smoko, vehide lmpacl, windstor¡n or hail, vandalism, målicious mìschlef, leakage or accldental dischargefrorn autornatlc ûre protectlve systerns;

Z. demolition or hc¡eased met of conslrucllon, repalr, debrls removal or lqss of use necossitated by the enforcement ofany law or ordinance regulating asbestos materlal;

3. any govemmenlal dlreclton or request declaring that asbestos malerial present ln or parl of or utilized oo ânyüntamaged porllon of lhe hsured's properly can no longer ba used for the purpose for which it was Íntended orhstalled and must be removed or modlfled'

All other terms and condttlons remaln unchanged-

ACE061 (02-04)




Service of Suit Endorsement

lnformationDnrlorscrn€ût Numbcr:

Polþ $¡mbol:

PolioyNumbcr:

PolicyPcriod:

Effective datc of Endorsement:

Issuedþ:(Nøc of hsurancc CoøgatY)

FS

D36054335 001

asn4t200stó 08n412906

08/2412005

lgeste.hester Surplus l,ines Insurauce Company

Endorsementlnformation

Thls E¡dorsenent ehanges tbe potlcy-Please re¡d ft careñtlly

Informntíon about servicc of "suits' upon Us is given belorv. Seivicc ofproc€Ss Of rsuib"

ag¡ainstus rnay be made upon the follorvingpøson, oranolhørperson Wc may dcsignate:

Saverio Rocc4 Assistant General Cormsel

ACEUSA CompaniesTwo Liberty Plaae - Tl35M1601 Cltcsùnut StcctPtiladclphia,PA 19103

lbe person ¡amed above is authdized æ,d di¡ected to acccpt strvicc ofproccs¡ on our

be¡áf ¡n any action, r'guit" or proceeding instituted against us- Ifyou requcst, we willg¡re you a rnittcn promisc tbat a gerreral appearance will be entcrcd ou or¡r bchalfif a

"srif isbrougþt,

If you request, we will submit to theþi{s¡liction of uy court of coryetent jrrisdictign.

Urã wil"-"""pt

t¡" final dcsision of 6at cou¡t ca any Àppcllate Court in the cwî¡t of a¡r

oppcal.

Thclarvs ofsomcjrrisdíctions of tlcUnitcd St¡tes of A¡uefica rcquirethatthcSr+crinændcnt Cbmnri"siooer orDi¡cotor oflnsruance (or their nrccessor in ofñce) be

designated as ou agent br'service ofprocess"

P¡g.j I ôfl




Endorsement lntormatlon In tbcsc juriedÍctions, wo dcsi¡pale lbc Dí¡ccto¡ of I¡su¡a¡cc ac our tuc and larvôrl attomcy upontcoNnNuEDf whoo ecrr¡lco ofproccrs olr our bafalfuaybe nadc- l[tc elso a¡l[orizc lhc Dircctor ofl¡sr¡rance to

roail procæs rcæivcd on our bctolf to tûc co,ryranypason nansd abovc-

If you rre r rcsJdø¡t of Ca¡aila, you oay elso sswe "suit' upon us by serviog ttre govenment ofEcialdccigøtËal þ thÊ law of lour pmvbce.

NOTHTNG SERETN æNIATNED SIfÂtL BB HEID TO VÁRy, ALïE& ìVAIyE OR DÞ$ßNDAI.TIIOFTIIB TERMS, COND.rIIONS,ORLIMITAIIOI{S OFTTIEPOLICYTO }ITHICIIlHI¡¡ENDORSBMEIÙÎ IS ÀTÎACHED OTIIERTHÄN ÀS ABOVE STATED.

'^ulhorlerdRnÙtúr¡b¡tvc

PeçZofzløaEB-|{D2O(4JDt)




.

NUGLEAR, CHEMIGAL.AND BIOLOGICAL EXCLUSIT¡N ENDORSEMENT

lbmsd fn¡¡rrsd

Gold Coaet Realty tnvostorsFo¡rcyslrnDc¡

FS

PO¡G)¡ NUlnOer

D36054335 001

rotÉTrenoo

08F24i2005 to 0812412oo6

Er¡Þcrrya ug¡e or Enq¡enq¡¡

oa24nÛ0ãkgrcd Br0ls¡pof ¡n¡ûanc. company)

Westchesler Surplus Llnss ln¡urance Company

_. _ln¡¿rtthc¡gtov,n¡rmbor,,Th¡mrrdLù,{Eúñn€lbn¡¡lob€grßgeYon¡yr,lnnlhfçeodoß€mgrt¡sbstþds¡bsE¡E¡rllobapregorafm.oflhopolcy.___

THIS ENDORSEIìJIENT CHANGES YOUR POL¡CY, PLEASE READ IT GAREFULLY.

Thls Endorsement modlfles lnsurance provlded under tho followlng;

Cornmerclal Properly Coveraga Parl

ï¡e fotøw¡r¡g exctuslons aro added U yåur Pollcyor Coverage Parl.

Thls insurance does not apply to:

A. Loss or damage âdslng dfreclly or fndlreclly fromnuolear detorralion, reac'lion, ru¡clear mdlaüon orra-dioaclivo contamínallon. all whether conbolled or un-controlled, ordua to any act or condtllon hcldent üc

any of lhe foregolng, whelher such loss be direct orlndiræt, prolûnato or romotq or be h wholo or lnparl caused b¡ contlbuted to, ø aggravated by, anyphlrsloal loss or damage hsured agøirst by this PoFlry or Coverago Parl, hou¡ever such nuclear detona.tlon, reac$on, nudear rad¡alion or radloactlve con-lamlnatbn nuy havo been caused. Thls oxduslonreplaces eny ottrer nucloar detonatlon. nuclear reac'llon. nuclear radlalim ø radioaclive conbmlnallonocduslons bund elsewhere ln this Poltcy.

lhodzed RePresentiatlræ

B- Loss or damage arlsing direclly or lndiroctly from thsdlspersal, applfcâtlon or folease of, or o<posure lo,dremical or blologlcal materlals or agenb. alfwhether conüìolled or unconlrollod, ordue lo alry aclor condltlon hcldent to any of the foragoing, whelhsrsuch loss ba d¡reot or lndirec[ proxlmate or remotqor be in wholo or ln part caused by, conblbuled lo, oraggnavated bn any phyeloal loss or damage lnsuredegalnst by lhls Pollcy or Coverage Parl, hoìirevorsuch-dbpersal, applicalhn, release or exposure mayhave been caused.

A,CE o21O (O2lO3l Page I ol 1




Terrorism Exclusion Endorsernent

-Gener¿LPollcyNamed.Ir¿s-uglt: - "GolilCo¡stReslty.In e*ors -...,

tnfo¡mation :'

EndorscurentNumber:

PolþSYmbol FS

PolicYlìIunrbcn D36054335 001

PolicyPcriod: ASl24rfNASloASn4n006

Effectir¡e datc of Endorsemgnt:O8n4n0gs

Issucd by: TVestchester surplus Lines Insurance Company(l'hnrc of bsrnncc CooPenY)

This E¡dorse¡neut changes the poücy -Ple¡se re¡d tt carefrllyThis odorscmcnt cbaoges your poliry as follonæ:

Endorsgment BOII¡RAì¡DMACRINBRYCO\IBRÀGEPART

lnformaiion BUSINESS AIIIO CCIIÆRÀGEFORMCARAGECOVER.ÀGBFORMMOTOR CAßRIER COVERÀGE FORMTRUCKER,S COVERÀGE FORM

BUSINESS AUTO PIITSICAL DAIvÍACE CO\ÆRá'GB FORMCOMIVtHRCIAL II{LAI'ID IvIARINE COVERAGE PARTCOIyIMERCIAL PROPERTY CO1/ER.ÀGE FORMCOMMERCIAL PROPERTY CO\¿BRÀGE PA¡TSTA}ID^ARD PROPERTY POIjCY

A. Any othcrprovision of this poticynotwithsbndin& this insurarco docc not coverloss,

danoagp, inJrrry, ocpeose, cocf or lcgal oblig¡tion dircstly or índircctly rcurltiog from or

arising out of or in arry way rclaæd to ony:

l. sAot ofTcrrorism"; or

2. Actions t¡kcr¡ by or on bchalf of any gorrcrørent or any brauch or division lhercof(including, rvirhoutlimiation,lhc uniformcd armcdfo¡ccg militia' police' stale

ì*"ity, *d aoti-t"ogr¡sm agenoies) in çqponding 1o, prcvonting, combatíng,

dcfcnding or retatiating against aay 'rAct ofTcrorjsm,"




Endorsement Informatlon Thís exclusion applies rcgardless of eny othcr causc or evcnt that in any way'(Gontlnued) contributcs conorrrcntþr or in sequcnce to the locs, injury, damagq expcuse,

sost, or legal obligation

This excluclon applice whether ornot the "Act ofTerrorisrn" s¡¡s comnitfed. i¡ concert rvith or on behalf of any organization or govarnmcnt.

B, As used i¡ this e¡¡dorscmo¡t:

"Act ofTcrrorismn locans an activíty tbat:

L Involvcs any víolent act or any act dangerous to humaa lifc, tangible oríntangible prop€rty, and tbat sausce ilanage lo prspilty ot injrry to pcrsons orcsuses a threatilnreof md

2. Appears to be intended, in whole or in paf, to:

a. htimidate or cocrce a cìvilianpopulatíon¡ or

b. Disrupt any segmcnt of a nation's eoonorüy; or

c. Influence tbe poliry of a govcrnmcnt by Íntimitlation or ooe.roion; or

d. Affeot the conduæ ofa gover¡r¡r¡pot by mass dcstrrrction, assassinalion,

kidnapping ortostago-taking; or

e. Respond to governmcotal action orpolicy.

"Aot of Terorism" shall also includo any incidcnt dctcmrincd tobe suoh by an

ofrcial, dcp'rtnent or agency that bas bccn epccifically authorizcd by fedc,lalstat¡te to nrakc sush a dotcruúDation,

Pagc lof ? Autlorizcd Agcrt




@ace usa

Westch'öster Surplus Llnes lnsurancô ComÞany

lnsuranco Company

D3605{335 00tPolicy Number

BISYS COMIvIERCIAL INSURANGE

BROKERAGEGold Coaat Roalty lnvoetorsPotlcy tlolder Brokor/Po{ucor

POL¡GYHOLDER DISGLOSU RENOTIGE OF TERROR¡SII INSURANCE COVERAGE

You have been notified that under the Tenorism RIsk lnsurance Act of 2OO2, effeclive November 26,2002,you ì¡t ere glven lhê rlght to purchase Insurance coverage for losses arislng out of acüs of tenorlsm, asdetîned in Secf/on 102(l) of lhe Act The term "act of terorism' means any aot lhat ls certified by lhe

Secretary of the Treasury, in concr¡rence wilh lhe $aøetary of Stale, and the Attorney Genenal of the

Unlted States - lo be. an act of terrorlsm; to be a vlolent act or an acl that ls dangerous to human life,properly or infrastructurq fo have resulted in damage wlthln the United States. or outside the Unlted States

ln the case of an alr carier or vesssl or the premlses of a United Slates mlssion; and fo have beencommitted by an indivldual or lndividuals actlng on behalf of any foreþn person orforelgn lnlorest, as part

of an effort to coerce tho ctvifian populatþn of lhe United States or to lnfluence the pollcy. or affect lhoconduct of the Unlted Stales Govemment by coerclon,

RESPONSIBIL¡TY FOR COMPENSATION UNDER THÉ ACT IS SHARED BËTWEEN INSURANCE COI,IPAN¡ES

coVERED BY THEACTA¡\¡D THE UN¡TED STATES. ANYCOVERAGE PURCI-hSED FOR LOSSES CAUSED BY

ACTS OF TERRORISM DEFINED IN THE ACT IS PARTIALLY REIMBURSED BY THE UNITED STATES UNDER A

FORMTJIâ ESTABLISHED BY FEDERAL LAW. UNDER THË FORMULA, THE UNITED STATES PAYS 9O7O OF

COVERED TERRORISM LOSSES EXCEEDING THË STATUTORILY ESTABLISHED DEDL,CTIBLEPAID BYTHE

INSURANCE COMPANY PROVIDTNG THE.COVERAGÊ. THE.PREMIUM FOR THE TERRORISì¡ COVERAGE

DEF¡NED ¡N THE ACT SET FORÍH BELOW DOES NOT INCLUDE AT'¡Y C¡.I,ARGES FOR THE PORTION OF LOSS

COVERED BY THE FEDERAL GOVERNMENT UNDER THE ACT.

You elected ,VOT to purchase lsrrorlsm cover¿¡ge under the Act at the príce indlcated. ACCORDINGLY, WE

WLL flOl PROVIDE THIS COVERAGE AI.ID YOt, DO NOT OWE THE ADDÍNOML PREMIUM FOR THAT

COVERAGE INDICATED BETOW.

Tenorbm coverage descrlbed by lhe Acl under your pollcy unas mado ala¡lable to you for addllonalprøntum ln the amount of $J.00'L however you elected to decllne sucl¡ covera¡ie.

Notlcs Form 5




ACE (Ð - Mortgagee

General Pollcy Naucd losurcd: Golil Coart Reatty fuvestors

EndorsementNutnbcn I

?olioy Period : 08f24120A5 b 08124t2006

Issued þ: lVætchester Slrplus Lites iusuran"" Company(tlarr of lorrrrencc ColqoY)

This Enùorsement cbrnges the polley - Plcose reed lt carefullyIhís sndorsemcnt modif¡es ins¡rancc providcd undcrthc following:

¡ v!v, ¡lu¡¡¡B

Effective datc of Bndorse,s¡ent: 08f2/,12005

COVBR.AGEFORM

Endorsementlnformation

PaBc I of¡Þì:Êì ('l".lF lr) l- '')'l

Commerdal property

fire Mortgagee shown belorv is made e part of thls policy:

BantrAtlantlcP.O.Bor8608tr't L¡ude¡ûale' If, 33310-8608

ArfhorizcdAgml




. ¡L 0255ü7 02

THIS ENDORSEMENT GHA}¡GES THE POLIGY. PLEASE READ IT CAREFULLY.

FLORIDA CHANGES

-CANCELLATION ^AND NONRENEWALThis endorsement modifies lnzura¡lce provlded under lhe following;

BOILER AT.ID TNACHINERY COVERAGE PARÏcApfrALA.ssETs PRooRAM {OUTPUT POLTGY) COVERAGE PARTCOû¡MERC¡.AL INLAND IIAR¡NE COVERAGE PARTCOMMERC'¡AL PROPERTY COVERAGE PARTCRIME AT{D FIDELITY COVERAGE PARTFARM COVERAGE PART

A. Paragaph 2. of lhe Ganceltation GommonPoli,ry Gondltion ls replaced by the folloring:2. Gancottatlon For Pollöles ln Effect 90 Days

Or Le¡sa. lf lhls pollcy has been ln effoct for 90 days

or læs, we may cancel lhis poliry bYmailng or delfuorfng to the llrst Namedlnsu¡od wdtþn r¡ollce of cancellalion,æcompani'ed by the speciflc reasons forcancellatlon. at laast:

(t) 10 days befure the effectlve date ofcancellal¡on lf we cancel fornonpaymant of premium; or

. lzt 20 days bebre lhe effectivs date of

cancellatlon if ws cance! fur any olherreaso¡1, o(cept ure may cancellrnrnedîatoly lf there has boen:

(a) A matorlal misstatement ormlsropresentatlon; o¡

(b) A failure lo comply w¡lhundenrriüng requirementseslâblshsd by lhe lnsurer.

b. Wemaynotcancd:(l) Ort the basls of prcperty hsuranoe

dal¡ns ürat a¡e ûle result of an act ofGo4 unless'wo can demonslratg bYdalms ffequenry or ohorudse, lhat ¡nuhâve fallod lo tat<e adlon reasonably.necossary as requested by us toprovont recurronûe of damago to lhelrsured ProPerty; or

(2) On lhe basis of fitlng of daims for partlalloss caused by slnkholo damago,regardloss of whethor thls policy has beenlhe subJec{ of a elnkhoþ chfn, or on tl¡ebasls of lhe rlsk assoclalod with thooccu¡?ence of such a clalm- Howover, wemay cmcel thÞ poli,ry lf:

(a) The total of such propsrty lnsuranceclalm paymenb for lhls pollry o<ceedslhe cr¡nent pollcy límils of covorago forproperty damage; or.

' (b) You have f¿ilod to r€pair the gtructuroln accordanc¿ wflh the errglneolngrecommendaüons upon whlch any losspaymont or pollcy proceeds were

basad-B. The follo¡¡Íng ls added lo lhe Ga¡rcellation Common

Policy Condlllon:

Z Cancellatlon For Pollcles ln Effect For Moft;Than 90 Þays

a. 'lf lhis pollcy has been tn offect for more lhan90 daya, ure may cancol lhls pollcy onty forone or more of lhe foll¡¡whg reÍ¡Êons:

(l) Nonpayment of prenrlum;

(2) The pollcy utas oblained by a materialmlsstatemenlt.

(3) Thero has been a fallure to comply wilhund€n¡Ílllng reç¡lrcmenls eslaHlshed bylhe Insurer withln 90 days of lhe etrectfuedate ofcoverage;

tL02 55 07 02 o ISO Properties, lnc., 20O1 Pagsf of2 E




(4) There has been a substannäl change in c. Thsfollowing is addedl ''lhe rlsk coverei by the pollo¡1 NONRENEWAL

fsl Tho cancellation is for all insureds' ' ur¡der such policios for a given class oflnsureds;

(6) On lhe basis of properly lrsurance_- - claims lhat are the result of an acl ofGod. if we cân de¡nonslrate, by clalmsfrequency or othøwisq lhat you have

provent rbcurenco of darr¡age to thelnsured ProPort¡¡; or

(7t On the basls of filing of dairns forpãrtfä¡ loss caused bY slnkhole' ðamage, or on lhe basls of the rlskassocbted wltù¡ tho oocuronco of sucha daim, lf:(a) The total of such PQPerty lnsurance' -

ctalm PaYmentsfor Ürls Polkry

exceeds lhe cunont pollcy llmlts ofcoverage for Propetly damage; or

(b) Yu¡ have ra¡þd to rePg!¡ !þoslruciluro ln accordanso wlth lheenglneerlng recommendallons uponwhich anY loss PaYment or PollcYproceeds were Þased.

b. lf we cancel lhls pollry for any of lhesereasons¡, we wlll mall or delfver lo lhe firstNamed 'tnsured writtsn notlce ofcancellallon, accompanied by lhe specificreasons for camellatlon. at leasl:

Itl l0 daræ before the offedlve date of' ' cancelíaüon if cancellalion ls for

nonpay,menl of premfum; or(2ì 45 days before the effecllve date of-

canceltallon lf:

(a) Cancellatlon ls for one or more oflhe reasons slaled h 7.a.(2)through 7.a.(7) above; and

Íb) Thts pollcY does not cover a- -resldonllal structure or its øttenls;or

(3) s0 da¡¡s before lhe effeclive date ofcancollatíon lf:

(a) Gancellallon ls for ono or moro of- - the rear¡ons slated in 7.a.(21lhrough. 7. a.(7) above; and

(b) Thls pollcy covers a rosldenlialslructure or lts contenls.

1. lf we decfde not lo renew lhls pollcy t,re wlll rnail ordallver lo lhe ñrst Named lnsured vrrlllen nollce ofnonronewal. accornpanled by tho spoclfic reason

for nonrenel¡val. at least:a. S) days pr'ror to the expiration of lhe pollcy if

lhis potiry covers a resldentlal slruch.¡re or llsconlents; or

all other pollcies.

2. Æ¡y notlce of nonronewal wiU bs ¡nalled ordellvered to lhs flfst Named hsured's taet rnallingaddress kno\ìm to us. lf notlce ls malled, proof ofmaillng will bo sufriclent proof of nollce.

3. We maynot refuse to renew lhis policy:

a. On lhe basis of property lnsurance clalms lhatare lho result of an act of God, unloss wo candemonslrate, by dalms frequency or olhen¡llse.

hat you have f¿lled lo taks actlon reasonablynscessary aÊ requesled by us to prevenlrscur€nce of damaga lo the lnsured property;or

b. On the basis of fllhg of clatms for parllal losscaused by sinkhole damage, regardless ofwhelher thls pollcy has been tho subþt of asinkhole ctalm, or'on lhe basls of lhe rískassoclated with the occurrsncg of such a ctaírn'Hou¡ove6we may refuse to renawlhis pollcy lf:

(1) The tolal of such proporly lnsurance claim-payments for lhls pollcy o<ceeds lhe ourrentpollcy llmlts of coverage for properlydamage; or

(zf You have falled to repalr lhe structure h- ' accordance wllh the englneeringreoommendallons upon whfch any losspaymont or pollcy proceeds were based.

Page 2oî 2 @ lSo Properlies, lnc., 2001 |.L025507 02 fl




Ndnoó lrlgr¡lúGold Goa¡t Realþ lnvestors

Wsstétiegter Surplue Llnes lnsufance Gompany

S,GNATURE ENDORSEMËNT,..

ù¡s¿d llro tollcy nr¡rrbor. Tþ rtrrutrrd¿rollhc fnbotratton l¡ lo bo ørçbtod

T}IE ONLY SIGNATIJRÊS APPLIC.ABLE TO THIS POL¡CY ARE THOSE REPRESENT¡NG THE COMPAI'IY NAMED

ON THE FIRST PAGE OF THE DECI¡RAT]ONS-

By sþnlng and deliverlng lhe pollcy to you, we state that ¡t ts a valkl conlmct when countorslgned by our authoriz€d

reprosentatlve.

'LUNOIS¡

UNIOT.I INSURANGE COMPANY

625W- Monroe Streel, Sulte 4ü), ch¡cagq llllnols 6O661

INA SURPLUS INSURANCE COMPÁNY

1601 Ghastnut slroet, P.O. Box 414t4, Phlladolphla, Pennsylvanla 19101'1484

WESTGHÉSTER SURPLUS LINES INSURÁNCE GOMPÀNY

5ü) Colonial Center Parlna¡a¡ Sutte 200, Rasræll, GA 30076.

.ùs.S23o PrDs) Pld. lt U-S.À

-Ar¡ltutedAænl




'f--,AJvarez, David ([email protected])

To : [email protected]: Fri, Novcmber ?;0,2009 2:48:14 PMCc:Pa¡lnm,LindaSSubJecû Gold Coastrealty Cat54 019023

John,

Got your fax today. \lrc aro getting a list of localions and spccífic values ûrom the carrier. Once æcciræd I will provide.Also, I am going o send you a copy ofthe polþ mderseprate covcr, Thar¡k You.

ÞavHAtvarszlLüoort Conolll

^4u5rrrru¡ntgctEngle llartln & Associates1920 AbbottStroctsü¡tlü¡06Ch¡rlolb, llc 28203PhorÊ: 70¡l{32{690 x ll

F¡r70¡l-332{ô51lc)701 8,10 62:13E.FAX l6t8l 5ôr.613ôÉ,or[: da lvarrz@ehglema Él n.côít




tar¿t' I ul I

'trro-,Alvaæa David (DAlvæ[email protected])

Io: Pabinc@bellsor¡tÌ¡.netDate: Fri, Novcrnþr 20, 2009 2:57 :28 PM$ubjecft 6old Coast Realty Cat54 019023

John,

Copy of policy is attached

Davld Alvarsztl¡úoml G¡n¡nl Aqùsbt ü.Dtg3rEngle lìlarün & Assoclates1920 Abbott gbeet

. sú¡Þ #Ílo8Chatlottè. Ne 28i103Photte: 701{32-8850 r tlF¡r 70,0€32{851(ol 704 8{0 623:¡E FAX (5711 55t-8ltBE*n ll: úr lvarez@englétÏÞ tll n com




øt/22/2øLø ø8: s4 5612436415 PAB INC

o,¡úolLt É O¿8)ttl-20ÉfDnErfFâ¡: r60)3cr-1tl{

tsrnrÇ lrltnncr-rxr.rr I e. I gSrus$¡u,iâ|s.le,rt(Í¡ü¡(01¡EÉ(r rrari.co¡l

JBnuafY 5,2010

Ve.ÇotttÚct ttpi, and A9 $all

Gofd CoaatRe¡lty d/b/a Counlry ClubVillasoc/o Frcd DsFalco3299 Norltrwcst Boca Raton Boulevard #200Boca Ralon, Fl-304t1

Re: lnsurcd: Bold Coaot Rerl¡l lnve¡totlClalm No.: Jf0õJ0103080Datsof Los* þf?AlzW5PolloY No.; IXI6054â35O01Oul Msttor No.¡ 200805,0008

Deer Mr DeFalco:

We have boen ¡etahod þy Wgehho¡ter Surplus Lho¡ In¡utunt".iotOolVf'WgLlC,l to asslst uiUù-íb in"esúggtlon of tfie abore a¡püonad mrüer. We aro.Ín

)åüi-oí üilüil;ñ¡-r"iúii dätû-óeæm¡er 10. 2ori0. whanln he lnvokeg the

ñ;líËi ñ;ilñfÇ 'riùiãJ-¡nt,-noc po$oy on be¡alf qç QoH coaet Reeltv

ií'ËöË i.rii" tnãürOl'er-ttriüurnc,wst-tc È unóon u parudp:þ tn appreleal ae the

ääñ-t""e:rtlg"tton fs i¡rgolng, 6nd'WSUC t¡ lhr¡¡ unarnare of the par¡rttotoß of Adlspute, if snþ

WSLIC reoontty ßoe¡yed notlce of tre lneurede supplemental clatrn. ln hle letter

ot OeóniËi1q-ã00ó,-ñdepondontÁdjueter Dsvltl.Alwree!?{Po¡ded to he purport€d

6*om SUtemerrt tri iroof ót l¡es (PdL) or¡ be¡alf of WgLlÇ. At that üme you wero

;d;;iJfñi ifre pouurae "nefthcr a'ccepbo norreledad" as ttre olalrn ¡emalned under

invcetlgallon.

Ac par{ of lls invoolþ¡üon end'asaeosrnent of Üro cJalm, w8Uç ie rcquerllng thetn¡urpd'¡e e¡omtnatlon în¿er oatlr bc leksn end documsnts h ï¡çpol .of T'eupplement¡t claim ¡e óroOucc¿, Thc E¡rarnlnallon Under Oath wl[ be teken ln

;;ã¡¿;;;,"ht, ttto".iul"c

lnsuranoe poncy- Specffioully, the 6sußnoe pol,cy

provtdee the folþwlng ponf'lose pol¡qy oblþatlono:

lI

r vy, ¡¡6e¡¡ffird Mr. Munay lo yor¡r publþ ctuebr, ¡s l¡ John lulrtloy of.PublioAdlls qyry9y, T..W"

å i,:[;î$"ffiH gymg,# ã:lf.ltrf1,ffififfii"i'"åiå il äi :ilgrli;'pËtãibtf,i'u,nh ..täï-ttit ddñ' wb voutd apprcdob r;¡¡lñcltþn fmm Ïpu on yÛur

ruÞtc¡onl¡rllon,

PAGE ø2/ø6

tüo'il Bou.ßv fiD. FHI r (þn¡¡PHoNÉ 788.3¡t8.2800 r FÁx 780-tl&2888

$l¡ 8vdgøleø t9vd




øt/22/2øtø 88:34 5612436415 PAB IhE PAGE ø3/ø6

Gold Co¡sf Re stt! lnYeù¡ß_J$r¡ary 5, Z0{0

P€¡a,à2

s.

E. LOSS CONDIì1oNS

Tlre lbllowlng condltbnl eppþ ln eddltion to the Common PollcyCondltlons and the Comrnerclal Propel$ Condltlø¡s.

Dutlos ln tlra Erront of Loro or Damnge

a. You rDuel Êeá tlmt fhe follotrlng aro done ln tho ownt of loss ordamego to Covcred Prûpa¡ty,

(1) Noüfulhopolbe

lf a larvmaytrave beoi broken.(21 Gtve uc prcmpt notico of tbô loss ordamage. lncludc

a dosorlptbn of tho propotty ltìvolved.

(S) A¡ emn ae posslbþ give ue a doaølptlon of fiour,whcn End Yvltere llu læs o/darnqgc oaar¡ned.

(4) Talca all rc¡eonsbt stop¡ lo pmtect ths coverÊdP¡oporlyûom fi¡rûror damagc by a Coveæd Cause ofLogl. lÍfeeslble, oelttp dsma(¡ed propârty aslde end

' h tho best poaslbþ ordar for araml¡¡aüon. Also fteepa rsoord ôt your exPoÍee$ lor emeryency and

' þfnponry mpars, for consÌdefâtlon ln the setuemofl

of ùre chlm. Thls.will not lncrensc tho Llmtt cflnguonoo-

(fl As our requarln glve us cnmpleb ìnventorþs of lhddrmaged and undamaged Prôperty. lncludequrnllües. oæ1. vahrso gnd.amourtt cf loee cla¡med-

(6) AÀ Oûen æ moy bc rca¡onablv n¡qulred, pemlt ue iolrupedüre propedy prorlidhrg ihe loee or damage andûxãtnlne Your bool¡¡ and recoldc'Äoo porñn w ür blte 6âmpþ8 ol fhe damagod andundamaged propeily for lnspec{¡on, iuql',ng andanalyeÎ0. and pemlt uc lo mako copieo ûom yourboolseand reoord¡-

f/) Scnd us n slgned, sworn proof of loco conb¡nlng þelnbmaüon rvs request lo hveetlgetp ltre clalm- Youmust do thts tl¡lthtn 60 d¡y¡ efter ow rcquesl' .wo willtupply you wlth the neggssary fotmt.

troo PO¡¡Cß DS tqOX Eout5rano, PHI . cô¡âLGAü,Ég, FLOrum ixlPrÐl¡e 788.34t-2t00 0 F¡(¡ 780.398.2888

90.rs0 Þvd !t{r wd gt':ÌE Zr9S ¿t¡91 gle,zlesllg




øtl22/2øtø A8:34 5612436415 PAB INC FAGh, 6Ctø6

O al¡t Coæì Re elty Inw clotcJenudy 5r 20f0

Þrar 3

(S) Cooperate wiitr uo ln the fnvællggtlon or Eotdemont ofthc clalm.

b, We may exrrÍlno âny lneumd undsr oâth, tflñlls not ln lhepfeson@ of âny ôfnef hguþd and at such times ae may bereasonably reqtfred, âboul any matler rlating to thls lnsunanoo

. orchbn, lndudlng an insuÞdg boob and records. ln the eventof an examination, an lnoured's answors fnuBtbe sþned.

Pursuant to lhe furegolng, WSLTO ie exercisíng ¡ts conbaotral dght und€r lñêpolloy to take bcamlnatlon(c) UnderOafr of ü¡e hrrued repreeentrtlve(s) wlth ths moet

icnowled0eh@1. ThoquanQ¡moflossl

2. Tha oau¡s of{re lore;

3. The malntengrim hhtory of ltn buiHings¡

4, Productlon andexplanatlon of lhedocumente ßqqeçþd;

g- Prapan¡tbn of and suppoúbrthe clalnr Þackqge.

The Bremlnatlon(e) UnderOatl is sdleduled Êðbl¡olvs:

Nrme; eold Ooatt Reqll!/t poreon wtür mort knovvledge of lheenumorstBd ¡roae of lnqulryabove.

D¡to¡ WednerdrY, eÆg¿X9419

Tlme: 1l:00 A.lt¡|.

Loc¡tlont TeylorJonovloGourtRrpordig3oi Clome¡ls Street 9ulte 3000Woet Prlm Bcroh, Florlda 3a3ll

lf moro lh¡n one peieon b neoorcaryr b roo¡ond to.-$e. aru¡s of

logqfry, to otatúrd obover tlre cx¡nlnrüons wlll br dpnecoñ¡eôuüvely et e mlntmum of hourly lnlew¡le. Pleare nob'ecch exemhão wltl bo quertloned ouÈldc lbr proeence of enyothsrexamlnes,

.,P{o$¡ci 730,Ct8.2000 r F^x 788.C99¿888

9gt9ø Ðüd oNt gv¿ g1'9ÊÞ2T90 Lþt9f sfø¿lg0llg




ø1/22/2øLø ø8:34 5612436415 PAB INC PAGE ø5/ø6

Oold Ooe d ReetU I nvsûorsJanueryS 2010

._ _ . .,. .. Þacclltf you rra nol avallqble o¡r lne date ae¡lgned,.. pleaee Pnta"{ our ofioe

tmmedhtèúy and we will work wlth you to bohedulo a rnutl¡alþ convenlent date,

YoU can e¡Oectrhat he Examlnatlon(¡) Under Oalh wíll tq¡(€ th'o beltsr part of adoy. ln advanco of the E)camlnat¡on(o) Under Otlh, plsag€ provlde us W¡fh lhc follotingdocumentsl

.,ttt tr? ,füJlì:,,î1"r."t{n"lgg.preparodonvourbaharf

bvenvonenrith resard to

,.-- f7ã-12, Copleo of att lnvoinsF ptoposals, bids, contracle, for all tteme ropah€d,v5 l*I ¡ anð/or ruphcãlãt rr-o ¡rwursd premhæ ar roaultgf .!he Jugiga¡Le bss,

. ìnqludl¡rg, br¡t not lîmited to, houncd feptkc ôñd propoaab for ft¡turerepairs,

,u5 âr. Copþr of eüIQQnlDlle.oancellsd chÈo|(s, sl¡od( lË0¡storl, and/or any othofpdof . of payment iõr all $pgFE ând/or laphcement t'D the hsured

þremlecsrom

f¡¡S [ZB] 4. Gopies rif att ¡heþßEphg snüor- vldeoe thowlng tha condlüon of thc. L--:-¡ lneUred premínrr t¡kgr at enytlmr by anyono,

NS f,76. ffii:#:.t¡oþnlns @ erùmrtted lorthe rneured

WS

Åa- ruiocumentsevkfenclng anv rcpprsþfte hsured proporty.

-

T. CoptêB'oúdog¡rrreûtu¡Jg:pl@8, ßæ¡pb! aÞterr¡enh. o( ølny othotproofof,,^r, frl paimont for mainbnffiìñ¡/or rcpalm b the lnaurcd pramleæ fvomtrt.l-{-)

@

rus [õ] a. ^m tha eserlg-lIslese.

, . - t-=1 g. Any ¡nd ell errglneedng or oûer gxoe$or conEullant repods pertalnlng tolNl l_tÞJ thicondtuonoftre subiect¡gp¡fu--

]uJ @| to-îlfgffi,t".t

rcfcnlns toCg'esg, Bpçlf"and rnelnÞnqnq.o$dre lngured

nS l3n. Any documents evtdenclng pmof of togt¡pFh.Fnd/or business lncome

'

F-| / J reaüng tothe lnsured propeñy fom Jagg¡ty290Oûo tåe.pres$f.

,-t 12. Any oonespondenoe retiltng þ dgnggg¡ r[dnþlgry and/or rcoalr ofl[,5 | !^Ê I thelnsurodprerr{ses.

etoo pqnoEDÉlÆoi Bo¡x¡vAñe. PHI ¡ ooFALêAU¡Ar FLOR|D S9l9lPsoile 788.338.2000 . Fâtc' 780.:Xlå.2888

jølso Ðvd Cltr a'd cttgct¿t!¡e ¿r:er ørø¿18ølÍs




ø1/22/2ølø ø8:34 56724364t5 PAE TNC PAGE ø6/ø6

ItJ l.g,p.] 13.

Øld Coast RætV lorocfor!

. ... _, _ ,i-,."?#jl4ll hcu¡aqlg..e9[gþg,hold on üô lnBur€d proporty from Januaw 20Q0 tothqotcr?f¡t .

rrrr@to.

lpS @ n#lã"Jir#Lappnabato.

evatuafions. and-lns@lþne-perraintns to rhe

1lll n 15. .lny ô-n,f alt doan¡6¡l¡tion and/or aofr$pondenoo w¡¡h anygovcrnmentr-, ffiddcconosmlngÞællgglþglgrÊpÊildrtngrooonalrucrtonqtppdr.

ôry{$"r ¿SggEgþJn @ ürat you wouH ilke thcWSL¡Cto conelder.

So lhaÍwe sre affo¡(ed e reasoneblc perlod sf tlme lo review lhe doc¡rment¿fion p¡irrr totaklng the examÈ¡ation(s) under oqú¡ please prouìde 'copiee of Hro requesteddocurneot¡ to our offtce on o¡beîo¡a F¡rdo/ø-,lanus_itrà?û.2ÙtQ-

. By uny of thls letter, V\tesfchr¡tur advl¡¡s lhãt tt b rcservlng all dghh undor thepellty as thet relale to thle olalm. Atr euch, any ¡dlon(¡) previoueþ lakon or lhat wtll belaken by Woctctrcstor andlor lb agorns rolated to {he evaluatlon, lnvd¡ligalion andadlulment of thlr clalm. ghall not vtâlvg or lnv¡lldate any of tfie þrrB and condltlon¡ ofthe subJoot ln¡ursnce poltcy.

Wo look fotwad lo your oooperutÌon. lf you have any quesliona ln the lnterlm.feol f¡ae lo conÞcl $e undenþned,

stn/*'ty,

)LtLw8B/MG/mkm

Seun MurhliTrlumph Consulthg Corp2860 Ststs Road &4Sultc 110/Box 100Fo* Lar¡derdalo. FL 3g3l2

John MalloyPubllc Adluutcre Eureriu, lnc,e47 Flyacfrth DnYóDolroy Baaoh, Ft 0Oll'3

. Wlllam S. Borl(

2100 PoNcE DE LrOr¡ Bourv¡rc. PHf . CoRALoâ8r4s¡ Flôflo^3319+püoN$ 786.438.2e00 0 F¡$c 788.æ8.2888

9ste0 !Þud oNI 8Vd grrgÊr¿l:ts illgl ew¿ßòtw




James Carlisle Page I of I

$t8lí'4[: i: SC!-tr:E]t-lUtrd€.i r: F"?ts1]Í¡\T$R Ë¡ùTûF:[t-Hlå :Í L$üA-f1üjt¡dg :i fd8'i]q.tï Uf{ :;

Hffi{"[CrqTf'ÐFJSpring Hilf College, f4obile,,Alabanra f956Unir.rersity of Miami, Sclroof of Laul, Coral Gahles, Florida 1.963

B{E&!ATI$N / FJEGþTÍÁIT3öÞ| åS88 t{r Pre$enÉDedicated to full tinie dispLlle resolution since 20t3. Caseload isprimaril¡r tort and comrnercial lltigatlon,

'ARËó{S0Ë PROFESSIOF{AL pRqtTfCË

A,ttorney General, State of Florida 1963 - 1967County Sof icltor's OffTce, Palm Beaclt Counl:y,pro.sequtions 1967 - 1973Judge, County Court, 15th ludîcial Circuit of Florida 1973JudrSe, Circuit Court, 1Sth Juclicial Circuit of Ftorida 1984

FR,I? FESSET NAL T fr.GJINTZÂT!ßN 5Ftorícla Supreme Court Certil'ied Circuit Civil' MedfaLor

Florida Bar AssocÏationPalm Beach Counfl Bar Association

Criminal

- 1984- 2003

$TÞ{ËR,Í'lilitary lst Lieutenant, U.S. A.rrriy 1956 - 1959

E ffiIEIT

3




RESUME

RoEcr B. Çolúon, Clrcult JudgÉ ßeû)13r JEdfcirl circuitPrtn Bc*ch Comty, f'lorldr

ADDRßSS: 11g71 I¡kc Sborc Flac€Norfù PûlmBcarh, Pl. 3340E

DATE ¡¡m ff¿Cm OF BIRTË: .Augurt 5, t937, Btooroingfoa Illinois

EDUCATION; Ilünoig Wcslo¡rm Univcrsi9, Bloomiugùou, [Iiusis 1955-1959

NorrthyËstän Univürgity, Scbool of I¿w, Ctdcago, Illiooi¡

Iuri¡DoqtonbDcgrrr 1959-1962

EMPLOYMENT3 Sp¡cí¡I AecÐr- Fedøal Bweil of Invustigatiæ (F3.t)Arsigned to tho follorvingofffccs: 1962-7971

tüasbingtotrrDC.f,lcmrut, Co.MontacY, C,a.

, Ssnft¡a!,P.nFL l^Eudt¡dsle, Fl.

kivateh¡cticc oflawwcrÉPqlnBçach,I[. lYll-1994

Ciçgit Judge, I 5t &dicial Cirsu¡tÆsigenenF: 1994r2W6

Civil ÐivisiouChit¡nal Divtsíon

' FmityDivisionfuvsnile Co¡rt 20[JG20Oó

$cøtmJrrdge,lstJtdioial Citcuit 2007-heecøt

Fluid¡strprtmc0ourtÇ€rtiüedMedi*or 2007-FrstcntCl¡a¡¡ít CiYil.FsEílyCot-tY

Spoc'itll4ast{rr 2007-hercrt

lYffi¡ Delorçs

CEIÍ,DREN: lito (2) gons




?ag of3t Prograrns

iorìda $-bats- (lo*ñs

tI

I

t\l)R Maiu Ìng.r$Iedintot 9carcl¡'l'hc Flur'¡du -Di:i¡rutu llc:olutiouCc^tlter

o ccrtit-tclriiot Qu¡rli fi t:ntio¡rs

r I(ulcs for Media(¡¡r.:

e Ch¡rptr':r{'l¡ Co¡rtir¡ning lvledintot Educ ntiou

r lTsinmglroglüü$ ctConfer¡¡ccs

o Mcdintorlrhics r\tlvilorY(lomn¡itlcc QPìrrirus

r Opporrurritics to $en'ct lhe Rewlutlon RePort

e ttroposcd Revigions to MctliltorQuotificntioru

Altetnative Dispute Resoluti on(ADR) has beei. utíiizedby theFlorida Court System to resolvedigpuæs for w èr 25 y eø¡s, startiDgwiù the'oreation of the first citizendíspute seütlemont (CDS) senter itrDa-de Countv itr 1975. Si¡cethat

. time. ths usés of inediation and

. arbiú*ion havc sro'iltr as thsLegislatt¡rs and judioiarY have

, oreatéd'ons of the mostcomrfehensive court-connectedmediatioß ptograttu, in the cowrtry.

The sourt-oonnocted medi'gtion. s¡d arbitrstiotr Progrttrs

renresentedin Florida Bre as

diiorse as the statsitself,ProcIüils have b een orga$ízedbasõd ontbe needs of t5e e,oì¡Ít,'tbe availabilitv of volunteersendths accoséiuility of fundingsoulges,

.

'Prior to 1987, mediatíon prcgf,emefor counw andfamilY cases wereinope¡atíon, and legiglátion suthøizedtlie creation of ciiizen disPutesettleme¡t centers and judioial

Currently, ws have 9 CDS .

orocrami. 49 countv mediationãióäamí f serving rill 20 oirouits),ls fa¡¡r¡tv inediatíon progra^ms, 13. -cirouît cMl meôitition programs' 4udepondency m eSiation Programs,three a¡bítration pfograrns an6 onoapp ell ate medietion PrÖgram.

Even more sig¡ifisantly, th.o sgope

of saob of theso PrograÍns, in tsrmsof both the u¡m15ei and tYPes ofoas'ss ¡eoeived, c'ontinües to oxpand' .

As tbe progfBm gro'wo, 811

interestius Phenomenoû hasoCsunedJthe largeßt gowth bas.been in the p¡ivate sector resgluton

of csr¡rt-ordered cases a¡d theresolution of caÉes throughmedíatio¡ which would otherwisehave becomc cívíl suits.

h 1990, tbeFlorida SuPreme Courtrevised ihe Rules of Civil Procedureto ¿llow oa¡ties 10 daYs f¡om thoorder of ieferral in whioh to seleottnàii own mediator. This provïsionhas led to the intended result ofeieater party involvement in the

to ://www.flcourts.org/gen publio/adr/ad¡inEo'shtml3n712006

Case 9:10-cv-81482-WJZ Document 1-4 Entered on FLSD Docket 11/16/2010 Page 95 of 98



$T xrograrT Pi 2of3

refeûal of cases to family mediationprog¡ams. As a result of the 1985and 1986 Legislative StudyCommissionsr irndincs and reoorts.the I'lorida Statutes ñere broddeneãi¡ 1987 to grant trial judges thoauthority to refer aty co[tested civilmatter to mediatiou or arbítationzubject to limited Sup¡eme Courtexcspti on s. Thi¡ cor¡iorehensivestatuie was supplemeÀted by tbeadoption of Rules of Civil

?rocedure (adopted is 198?) theFlorida Rules fo¡ Certified nndCorut-App oi¡tEd Mediæors(edopted in, 19yZ), autl the FloridaRule¡ for Court-Aooointed-Arbíhators (adopêô in Þ94)..

In a¡ effortto kcep pace with this' rapidly wolvrngfield, tbs Supreme' Court ofFlo¡idahas a committes or .

medíation (ADRPolicy a¡d Rules),t ' amediator griovanceboàrd

(l4ediator Qualifi cations Board), agriwanco board for certifieduainiu g gro E¡aûs (Ivlediati onTraining Rwiow Board), ar¡d Ênethics advi sory comuittee$4e di atoi" Ethics Advi s ory

Committoo),

Irr 1994 tbe Suprerne CourtCommittes on Mediation a¡dA¡bitation Traíning þredecessor tothe AÐR Folicy Committeo)undertook a comprehensivs ¡evi ewof the mediation training standsrdswhích were initiallv addoted bv thochiefjustice in 1989. Wí*¡ tho-assistarrce of subject matter expertsand input from traine¡s zurd traineos,

process with circuits reporting thatõver 90 percont ofthe perties agreeon a meðistor. Unfori¡nately, tbishas also resulted in creater diffi.cultvfor maintaining oomlleto statistics

-

oa the scope of the progfam,Althoush all20 iudroial clrcuitsrsfer soäe oortiön of thei¡ caseloadto mediatioh. 9¡e are able to collsotstatistios' o¡lv from thoso si¡cuits in'whicl¡ a direótor or coordinator ofmediation servioes has béen

designated.

As ofDec€mber 2005, over18,000 tndividuals hadco¡nnleteda Suoreme Cou¡t ofFto¡Ída certifi eil mediationfairing programs, Curientlythere are 1391 ooultyme'diators, 7 682 førnilymediators.2766 c¿;rcuitmediatoriand 138 dependoncymediators certifted by theSuprems Gourt of Flo¡ida.

In addition to the souft-orderedcounw civil mediation and

a¡bitätioufamily (divorce)

medintion, and oirguit civili¡ediation a¡d arbitatio¡ programs,there are avarìeÈY of ADRDrocrams operati-se zuocessfullyih¡oî¡hout the stale. Within thé

'çourt-coûtext, mediati on, arbitrationand med/arb a¡e utüized in juvenilocases in several circuits, sttmmarYiurv t¡ials a¡eutïlized on an ad hoobaíis in other cirouits, a¡¡d thsfede¡al oourts utilize both me<liationand arbitration. Thero a¡e nume¡ous

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the cornmittee revised the traininsprcgrarn standards. The proposed"sta¡dards \ryero aDpÍoved bv thecourt and becanè'effectivdas ofApril 1, 1996, purzuant to ChiefJustige Stsphen H. G¡imesadministrativs order.

In 1988,tbffe'were 16 CDSprograrns,'three court-based smellolaims (county) mediationprograms, 14 court-baseil

familymediation programs, two oou¡t-bssed oircr¡it cív¡l mediationprog¡ams and no court a¡bitraúonprogr&ns.

state ADR stafi¡tes and sucoes$fulADR programs through theDopartrre,nt of Ins:ranoo, tbeDivision ofMobileHomes of theDeparbrent of Business andProfessi onal Regulati on, theWorkers Componsation Division oftheDepartrnent of Labor andEmployloent SecurÍty, to name justa 1e14r,

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ARC Mediation Page I of I

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