Document BybyLB61jnJnR3bO1Vn0JQv1j

&C8& HRWOODS'# lofijsS-/ofi/si \ N18756 \ GLD058588 0049-GLD-000058588 U m brella H anson/K idde HR000027688 1 0 /1 /8 8 -8 9 A m erican Excess THIS IS A REPORTED OCCURRENCE POUCY WHICH CONTAINS CERTAIN FEATURES THAT ARE ANALOGOUS TO THE ONES FOUND IN CLAIMS MADE POLICIES. PLEASE READ THE ENTIRE POLICY CAREFULLY. EXCESS INDEMNITY POLICY INSURANCE UNDER THIS POLICY IS PROVIDED BY SEVERAL SEPARATE INSURERS, WHO ARE ALL MEMBERS OF THE AMERICAN EXCESS INSURANCE ASSOCIATION. THE LIABILITY OF THESE INSURERS IS SEVERAL AND NOT JOINT AND IS SET OUT SPECIFICALLY IN ENDORSEMENT NUMBER 1 WHICH IS ATTACHED TO AND FORMS PART OF THIS POLICY. American Excess Insurance Association (Herein called the "COMPANY") Words and phrases that appear in aIf capital letters have the special meanings set forth in Section V-DEFINITIONS. DECLARATIONS POLICY NUMBER: HR0Q0027688 Item 1: NAMED-INSURED: HANSON INDUSTRIES Address of NAMED INSURED: 410 PARK AVENUE NEW YORK, NY 10022 Item 2: COMPANY'S Limit of Liability under this POLICY in the aggregate for all covered OCCURRENCES: $75,000,000.00 part of $75,000,000.00. See Endorsement Number l to this POLICY. Item 3: PER OCCURRENCE UNDERLYING AMOUNT: $25,000,000.00 "DEFENSE EXPENSES" ARE INCLUDED IN THE LIMITS OF LIABILITY OF THE POLICY AND ARE IN THE "PER OCCURRENCE UNDERLYING AMOUNT" ABA 1-NY REV. A. (t of 16] GLD058589 0049-GLD-000058589 Item 4; POLICY PERIOD: From 12:01 A.M.* on the 1ST day of October, 1988. ("Inception Date"). To 12:01 A.M.* on the 1ST day of October, 1989. ("Expiration Date"). Item 5: RETROACTIVE DATE: 12:01 A.K.* on the 1ST day of October, 1986. Item 6: Flat Premium for the POLICY PERIOD: $1,264,000.00 Item 7: Representative of COMPANY: Farmington Management, Inc. RiverBend Executive Park 77 Hartland Street East Hartford, CT 06108 Attention: The President Item 8: Representative of NAMED INSURED: HANSON INDUSTRIES 410 PARK AVENUE NEW YORK, NY 10022 Item 9: Endorsements attached at POLICY issuance: 1. Liability of Insurers Endorsement, AEIA-2 2. New York Mandatory Endorsement, AEIA-S-6 (Authorized Representative) `Standard Time at the address of the NAMED INSURED as stated herein. AEIA 1-NY REV. A 12 of 16} GLD058590 0049-GLD-000058590 Insuring Agreements In consideration of the payment of the premium and in reliance on all statements made and information furnished by the NAMED INSURED to the COMPANY, including the representations and warranties made in the Application for this POLICY, hereby made a part hereof, and subject to the foregoing Declarations, hereby made a part hereof, and to all of the terms of this POLICY, the COMPANY and the NAMED INSURED agree as follows: I. COVERAGE (a) The COMPANY shall indemnify the INSURED for ULTIMATE NET LOSS which the INSURED shall become legally obligated to pay by reason of liability imposed upon the INSURED by law or liability of others assumed by the INSURED under contract or agreement because of PERSONAL INAJRY, PROPERTY DAMAGE or ADVERTISING OFFENSE anywhere in the world, (1) which results from an OCCURRENCE, notice of which shall have been first given to the COMPANY (in accordance with Condition (c) hereof): (A) by the NAMED INSURED during the POLICY PERIOD; (B) by the NAMED NSURED during any EXTENDED REPORTING PERIOD which the NAMED IN SURED shall have elected to secure (or continue) in accordance with the following paragraph 1(b); or (C) by any former subsidiary or affiliate of the NAMED INSURED during any EXTENDED REPORTING PERIOD that may arise In accordance with Condition (m) hereof; and (2) for which a CLAIM is made against the INSURED, and of which CLAIM the NAMED INSURED has given written notice to the COMPANY, within ten (10) years from the effective dale of cancellation of the POLICY or the Expiration Date stated in item 4 of the Declarations irrespective of whether (A) the notice of OCCURRENCE in paragraph 1(a)(1) above was given during the POLICY PERIOD; or (B) such notice was given during the EXTENDED REPORTING PERIOD; provided, however, that In no event shall there be coverage under this POLICY for any liability of any INSURED with respect to any OCCURRENCE, PERSONAL INJURY, PROPERTY DAMAGE or ADVERTIS ING OFFENSE for which there is, or but for the issuance of this POLICY would be, any coverage in any amount provided under any other policy issued by the COMPANY to the INSURED irrespective of whether such other policy is issued prior to, simultaneously with or subsequent to this POLICY (b) In the event of cancellation or nonrenewal of this POLICY by the NAMED INSURED or the COMPANY, other than cancellation for nonpayment of premium, the NAMED INSURED may elect to secure an EXTENDED REPORTING PERIOD for an ANNUAL PERIOD, and thereafter may elect annually to continue such EXTENDED REPORTING PERIOD for no more than four (4) additional ANNUAL PERIODS, for such INSUREDS as the NAMED INSURED shall designate, by giving the COMPANY written notice of such election not less than ten (10) days prior to the effective date of cancellation of the POLICY or the Expiration Date stated in Item 4 of the Declarations, or the expiration date of each ANNUAL PERIOD, and by paying to the COMPANY the appticable annual premium as set forth in the attached Schedule B no later than the date of commencement of each ANNUAL PERIOD of such EXTENDED REPORTING PERIOD. Where notice of an OCCURRENCE is first given, in accordance with Condition (c), during such EXTENDED REPORTING PERIOD, it shall be deemed to have been given during the POLICY PERIOD of this POLICY for purposes of the application of the terms of this POLICY including, but not by way of limitation, the COMPANY'S Limit of liability and the PER OCCURRENCE UNDERLYING AMOUNT. II. LIMIT OF LIABILITY (a) Subject to all the terms hereof, foe COMPANY shall indemnify the INSURED, in accordance with Condition (f), only for that amount of ULTIMATE NET LOSS, as provided for in Endorsement Number 1 to this POLICY, for any OCCURRENCE covered pursuant to paragraph I hereof, which ULTIMATE NET LOSS is in excess of the greater of either: (1) ULTIMATE NET LOSS in the amount of foe PER OCCURRENCE UNDERLYING AMOUNT; or (2) ULTIMATE NET LOSS with respect to any OCCURRENCE in the amount covered by collective OTHER INSURANCE: and then only up to the amount stated in Item 2 of foe Declarations as the COMPANY'S Limit of Liability, which is the maximum amount payable by the COMPANY under this POLICY in ihe aggregate ASIA t [3 of 16] GLD058591 0049-GLD-000058591 with respect to all ULTIMATE NET LOSS arising from any and all OCCURRENCES, irrespective of the period over which any OCCURRENCE, idee, PERSONAL INJURY, PROPERTY DAMAGE or ADVER TISING OFFENSE occurs or the number of such OCCURRENCES, losses, PERSONAL INJURIES, PROPERTY DAMAGES or ADVERTISING OFFENSES and irrespective of whether the notice of OC CURRENCE is given during the POLICY PERIOD or during any applicable EXTENDED REPORTING PERIOD. (b) Only ULTIMATE NET LOSS which would be covered by this POLICY (If the terms of this POLICY were satisfied) but for the amount of such ULTIMATE NET LOSS and/or the existence of OTHER INSURANCE is included within the ULTIMATE NET LOSS referred to in paragraphs 11(a)(1) and (2) above. (c) Neither (1) the inclusion or addition hereunder of more than one INSURED; or (2) any EXTENDED REPORTING PERIOD secured in accordance with paragraph Kb), and or arising in accordance with Condition (m) hereof; shall operate to reinstate or increase the COMPANY'S Limit of Uabity beyond that set forth in Item 2 of the Declarations or to extend tha POLICY PERIOD. 111. EXCLUSIONS This POLICY shaH not apply to any liability or alleged liability of the INSURED for: (a) PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE for which the INSURED has as sumed liability under any contract or agreement, if such PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE occurred prior to the time such contract or agreement became effective; (b) PERSONAL INJURY. PROPERTY DAMAGE or ADVERTISING OFFENSE in any manner arising out of the design, construction, maintenance, manning, ownership, operation or use of any WATERCRAFT; provided, however, that this Exclusion (b) shall not apply with respect to WATERCRAFT or risks listed on Schedule D hereto and loading or unloading of any WATERCRAFT at premises owned, teased or controlled by the INSURED; (c) (t) PERSONAL INJURY PROPERTY DAMAGE or ADVERTISING OFFENSE directly or indirectly arising out oh (A) the actual, alleged or threatened discharge, dispersal, release,' seepage, or escape of any POLLUTANT into or upon any person, place or thing including the land or other real estate, any man-made structure, toe atmosphere, any water or watercourse whether above or below ground or otherwise into the environment, however caused and whenever happening; or (B) any direction or request whether governmental or otherwise, that toe INSURED evaluate, test for, monitor, dean up. remove, control, contain, treat detoxify or neutralize any POLLUTANT or the actual, alleged or threatened discharge, dispersal, release, seepage or escape thereof; provided, however, except as provided in paragraph (2) of this Exclusion (c). that subparagraphs (1)(A) and (B) of this Exclusion (c) shall not apply to PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE arising out of or alleged to arise out of such discharge, dispersal, release, seepage or escape and caused solely by: (C) unintended fire or explosion, or lightning; or (D) a collision or overturning of an AUTOMOBILE or railroad vehicle; (E) a single or intermittent discharge, dispersal, release or escape, which ceases within seven (7) days of its first commencement of: (i) POLLUTANTS, other than herbiddes, pesticides or defoliants, which constitute the IN SURED'S PRODUCTS; (ii) POLLUTANTS, other than herbicides, pesticides or defoliants, where such discharge, dis persal. release or escape is caused by or results from the INSURED'S PRODUCTS, other than products that are specifically designed, intended or marketed to evaluate, test for, monitor, treat, detoxify or neutralize POLLUTANTS; or (iii) POLLUTANTS from premises owned, leased, rented or controlled by the INSURED; and provided that such discharge, dispersal, release or escape results in PERSONAL INJURY or PROPERTY DAMAGE which commences and is discovered within seven (7) days after the time such discharge, dispersal, release or escape first commences; ( ABA 1 [4 of 16] GLD058592 (2) The exception to subparagraphs (1)(A) and (B) of this Exclusion (c) which are contained in subpar agraphs (1)(C), (D) and (E) of this Exclusion (c), shall in no event apply to: (A) PROPERTY DAMAGE directly or Indirectly arising out of: (i) underground or underwater operations of the NSURED; and/or (ii) removal of, loss of or damage to underground or underwater oil. gas or any other substance: (B) PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE directly or indirectly arising out of the handling, processing, treatment, storage, disposal, dumping, discharge, dis persal, release, seepage or escape of any WASTE: (C) the cost of evaluating, testing for. monitoring, cleaning up, removing, controlling, containing, treating, detoxifying and/or neutralizing the cSscharge, dispersal, release, seepage and/or escape of any POLLUTANT on property at any time owned, leased and/or rented by the INSURED and/ or under the control of the INSURED: and (D) PERSONAL INJURY. PROPERTY DAMAGE or ADVERTISING OFFENSE directly or Indirectly arising out of the actual, alleged or threatened discharge, dispersal, release, seepage or escape of any POLLUTANT: (i) into any underground water or watercourse; or (ii) from any underground or underwater tank, piping or other container of any type; unless the immediate cause of such discharge, dispersal, release, seepage or escape is unin tended fire or explosion, or lightning; (d) ADVERTISING OFFENSE arising out of: (1) failure of performance of contract, other than the unauthorized appropriation of ideas based upon alleged breach of implied contract; (2) infringement of trademark, service mark or trade name, other than titles or slogans, by use thereof on or in connection with goods, products or services sold, offered for sale or advertised; (3) incorrect description or mistake in advertised price of goods, products or services sold, offered ter sale or advertised; or (4) the failure of goods, products or services to conform to advertised quality or performance; <} (1) except in respect of PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE faking place in and caused by events and conditions occurring in the land area of the United States of America, its territories or possessions, or Canada, PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE directly or indirectly occasioned by, happening through or in consequence of war, invasion, acts of foreign enemies, hostilities (whether war be declared or not}, civii war, rebellion, revolution, insurrection, military or usurped power or confiscation or nationalization or requisition or destruction of or damage to property by or under the order of any government or public or local authority; (2) except in respect of PERSONAL NJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE, taking place in and caused by events or conditions occurring in tee land area of tee United States of America, its territories or possessions, or Canada, PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE, not excluded by paragraph (1) of this Exclusion (e), which is caused by, results from or is attributable to tee INSURED'S PRODUCTS, which are used, designed or intended to be used for the purpose of Inflicting PERSONAL INJURY or PROPERTY DAMAGE, and which PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE arises in connection with: (A) war. Invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war. rebellion, revolution, insurrection, military or usurped power; or (B) confiscation, nationalization, requisition or destruction of. or damage to, property in connection with or arising out of any of the situations listed in subparagraph (2)(A) of this Exclusion (e); (f) PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE arising out of asbestos, tobacco or tobacco products, dioxin, asbestiform talc, diethyistibesterol, urea formaldehyde or any intra-uterine device; (g) PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE arising out of the design, manu facture, construction, maintenance, service, use or operation of any AIRCRAFT, or any component part or equipment thereof, or any other airplane navigational or aviation related equipment; (h) PERSONAL INJURY or PROPERTY DAMAGE (1) with respect to which an INSURED under this POLICY is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liabffity Insurance Association, Mutual Atomic Energy Liability AE1A 1 [5 of 16J GLD058593 0049-GLD-000058593 Underwriters or Nuclear Insurance Association of Canada or any of their successors, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; (2) resulting from tie `'hazardous properties" of "nuclear material" and with respect to which (A) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof; or (B) the INSURED is or, had this POLICY not been issued, would be entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered Into by the United States of America, or any agency thereof, with any person or organization; (3) resulting from the "hazardous properties" of "nuclear material'', if (A) the "nuclear material" (i) is at any "nuclear facility" owned by, or operated by or on behalf of. an INSURED or (ii) has been discharged or dispersed therefrom; (8) the "nuclear material" is contained In "spent fuel" or "waste" any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an INSURED; or (C) the PERSONAL INJURY or PROPERTY DAMAGE arises out of the furnishing by an INSURED of services, materials, parts or equipment in connection with the planning, construction, mainte nance, operation or use of any "nuclear facility", but if such facility is located within the United States of America, its territories or possessions, or Canada, this subparagraph (3)(G) applies only to "property damage" to such "nuclear facility" and any property thereat. As used in this Exclusion (h): "hazardous properties" include radioactive, toxic or explosive properties; "nuclear material" means "source material", "special nuclear material" or "by-product material"; "source material", "special nuclear material" and "byproduct material" have the meanings given them in tile Atomic Energy Act of 1954 or in any law amendatory thereof; "spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a "nuclear reactor"; "waste" means any waste material (1) containing "byproduct material" other than the tailings or wastes produced by the (traction or concentration of uranium or thorium from any ore processed primarily for its "source material" content and (2) resulting from the operation by any person or organization of any "nuclear facility" included under the first two paragraphs of the definition of "nuclear facility"; "nuclear facility" means: (1) any "nuclear reactor"; (2) any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium, (b) processing or utilizing "spent fuel", or (c) handling, processing or packaging "waste"; (3) any equipment or device used for toe processing, fabricating or alloying of "special nuclear material" if at any time the total amount of such material in the custody of the INSURED at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235; (4) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of "waste"; and includes the site on which any of the foregoing is located, ail operations conducted on such site and ail premises used for such operations; "nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material; "property damage" includes all forms of radioactive contamination of property; (i) PERSONAL INJURY or PROPERTY DAMAGE directly or indirectly caused by or contributed to by or arising from ionising radiations or contamination by radioactivity outside the United States, its territories or possessions, or Canada from any nuclear fuel, any nuclear waste or from the combustion, fission or fusion of nuclear fuel; (j) PROPERTY DAMAGE to property rented to, used or occupied by or in the care, custody or control of the INSURED: (J) to the extent that the INSURED has agreed to provide insurance therefor; or (2) if such property is owned by any person or organization controlling or coming under the control of the INSURED; AElA 1 [6 of 161 GLD058594 0049-GLD-000058594 (k) (1) loss of use of tangible property which has not been physically injured or destroyed, resulting from: (A) a delay in or lack of performance by or on behalf of the INSURED of any contract or agreement; or (B) the failure of the INSURED'S PRODUCTS or OPERATIONS completed by or on behalf of the INSURED either to meet any warranty or representation by the INSURED as to the level of performance, quality, fitness or durability or to perform the function or serve the purpose intended by the INSURED; provided, however, that paragraph (1) of this Exclusion (k) shall not apply to loss of use of other tangible property resulting from the sudden and accidental physical injury to or destruction of the INSURED'S PRODUCTS or OPERATIONS performed by or on behalf of the INSURED after such INSURED'S PRODUCTS or OPERATIONS have been put to use by any person or organization other than an INSURED; (2) PROPERTY DAMAGE to arty portion or section of the INSURED'S PRODUCTS or of OPERATIONS completed by or on behalf of the INSURED, if such PROPERTY DAMAGE arises out of that portion of such products or that section of OPERATIONS, or out of materials, parts or equipment furnished in connection therewith; or (3) the withdrawal, inspection, repair, replacement, or, in connection with any of the foregoing, loss of use, of the INSURED'S PRODUCTS or OPERATIONS completed by or for the INSURED or of any property of which such INSURED'S PRODUCTS or OPERATIONS farm a part. If such INSURED'S PRODUCTS, OPERATIONS or property are withdrawn from the market or from use because of any known or suspected defect or deficiency therein whether caused or believed to have been caused by the INSURED or by any other person or entity; (i) any obligation for which the INSURED or any carrier as Ns insurer may be held liable under any workers' compensation, unemployment compensation or disability benefits law or the Longshoremen's and Harbor Workers' Compensation Act, or under any simiar state or federal law; provided, however, that this Exclusion does not apply to liability arising under the Federal Employers Liability Act or the Jones Act; (m) PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE resulting from an OCCURRENCE if notice of such OCCURRENCE has been given prior to the Inception Date stated in Item 4 of the Declarations under any policy which policy has expired prior to or upon the inception of this POUCY; (n) PERSONAL INJURY or PROPERTY DAMAGE arising out of discrimination or humiliation directly or indirectly related to employment or prospective employment of any person or persons by any INSURED; (o) PERSONAL INJURY or PROPERTY DAMAGE directly or indirectly arising out of the' actual or threatened termination of employment of any person or persons by any INSURED; (p) PERSONAL INJURY PROPERTY DAMAGE or ADVERTISING OFFENSE and/or any liability of any nature whatsoever arising out of: (1) the purchase, sale or distribution of securities or offers to purchase or sell securities, or investment counselling or management, inclucfing, without limitation, liability under the Securities Act of 1933. the Securities Exchange Act of 1934, the Trust Indenture Act of 1939, the Public Utility Holding Company Act of 1935, the Investment Company Act of 1940, and the so-called "blue-sky" laws of the various states or other jurisdictions or any laws amendatory of any thereof; (2) antitrust or the prohibition of monopolies, activities in restraint of trade, unfair methods of competition or deceptive acts and practices in trade and commerce including, without limitation, the Sherman Act, the Clayton Act, the Robinson-Patman Act, the Federal Trade Commission Act and the HartScott Rodino Antitrust Improvements Act and the similar or equivalent laws of the various states or other jurisdictions; (3) fraud or breadt of fiduciary duty; (4) governmental, civil or criminal fines or penalties; (5) the failure to pay when due any governmental tax (including, without limitation, income, excise, property, value added and sales tax) or tariff, license fee or other governmental fee which is incidental to toe conduct of business or any assessment, fine or penalty related thereto; (6) copyright, patent or trademark infringement (other than advertising liability with respect to titles or slogans); (7) any defect in or impairment to title to real property, including fixtures, whether or not owned by an INSURED; AEIA 1 [7 of 16] GLD058595 0049-GLD-000058595 (8) disclosure or other regulation of sales of, and offers to sell, real property; (9) employee, officer or director dishonesty or any liability of any employee, officer or director of an INSURED to such INSURED. No inference shall be made from me exclusion of liabilities, PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE h any Exclusion that this POLICY would otherwise cover such liabilities, PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE or covers similar Gabilities, PERSONAL INJURY, PROPERTY OAMAGE or ADVERTISING OFFENSE; nor shall any portion of any Exclusion to the POUCY be construed to be an extension of coverage otherwise provided by toe POLICY. IV. CONDITIONS (a) Premium (1) The premiums under this POLICY are flat premiums and are not subject to adjustment, except as otherwise provided in paragraph (6) of Definition 0 and Condition (q) hereof. The premium shall be paid to the COMPANY. (2) Additional premium for an EXTENDED REPORTING PERIOD shall be fully earned, notwithstanding anything contained in this POLICY to the contrary, when the ANNUAL PERIOD to which such premium is applicable incepts. (b) fnspectrorr end Audit (1) The COMPANY shall be permitted but not obligated to inspect the INSURED'S property and opera tions at any time. Neither the COMPANY'S right to make inspections nor the making thereof nor any report thereon shall constitute an undertaking, on behalf of or tor benefit of the INSURED or others, to determine or warrant that such property or operations are safe, healthful or in compliance with any law, rule or regulation. (2) The COMPANY may examine and audit the INSURED'S books and records at any time while this POUCY Is in force and wltofn ten (10) years after the final termination of this POLICY or within one (1) year after final settlement of all claims arising out of any OCCURRENCE notice of which was given during toe POUCY PERIOD or any EXTENDED REPOTTING PERIOD, as far as they relate to toe subject matter of this POLICY. (c) Notice of Occurrence or C/a/m (1) If any employee of toe risk management or legal department or any officer or director of any INSURED shall become aware of an OCCURRENCE likely to involve this POUCY, the NAMED INSURED shall as soon as practicable, as a condition precedent to toe rights of any INSURED under this POUCY, give written notice to tine COMPANY which notice shall indude, but not be limited to, information as to the nature of the OCCURRENCE, the actual or anticipated injury or damage resulting therefrom, the name(s) of any claimants) or potential claimants) and toe manner in which and the date on which the INSURED first became aware of toe OCCURRENCE and such other detailed information as toe COMPANY may reasonably request regarding the OCCURRENCE. Unless such written notice is provided as required herein, there shall be no rights to any coverage hereunder. (2) If any CLAIM likely to involve this POUCY is made against any INSURED, as a condition precedent to the rights of any INSURED under toe POUCY, the NAMED INSURED shall, as soon as practicable, give written notice to toe COMPANY of such CLAIM and, if written notice of the OCCURRENCE from which the CLAIM arises has not already been given, written notice, in accordance with paragraph (1) of this Condition (c), of the claimed or alleged OCCURRENCE with respect to which such CLAIM is made and shall promptly forward to the COMPANY copies of any written CLAIM, demand, notice, summons, complaint or other process received by toe INSURED or its representatives or agents. Unless such written notice is provided as required herein, there shall be no rights to any coverage hereunder. (3) Notice to the COMPANY shall be given to toe person or entity stated in item 7 of the Declarations and shall be deemed to be given when sent if sent by certified mail, return receipt requested, by telex with receipt acknowledged or by any express mailing service where a written receipt of sending is provided. ( v ( ASIA 1 [8 of 16] GLD058596 0049-GLD-000058596 (d) Assistance and Cooperation The COMPANY shall not be called upon to assume charge of the settlement or defense of any CLAIM made against an INSURED but the COMPANY shall have the right and shall be given the opportunity to associate at its own expense with the INSURED or the issuers of OTHER INSURANCE or both in the investigation, settlement defense and control of any CLAIM relative to any OCCURRENCE where the CLAIM involves, or appears reasonably likely to involve, the COMPANY in which event the INSURED and the COMPANY shall cooperate to all things in the defense of such CLAIM. The INSURED shall enforce or cooperate with the COMPANY to enforce any right of contribution or indemnity against any person or organization who may be liable to the INSURED because of PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE with respect to which insurance is afforded under this POLICY. In tiie event that the COMPANY, in its sole discretion, chooses to exercise its rights pursuant to this Condition (d), no action taken by the COMPANY in the exercise of such rights shail serve to modify or expand in any manner, the COMPANY'S liability or obligations under this POLICY beyond what the COMPANY'S liability or obligations would have been had it not exercised its rights under this Condition (d). (e) Appeals In toe event toe INSURED or the issuers of OTHER INSURANCE elect not to appeal a judgment in excess of the limits of Hability of such OTHER INSURANCE, toe COMPANY may elect to make such appeal at its own cost and expense and shall be liable for toe taxable costs and disbursements and interest on judgments incidental thereto, but in no event shail the total liability of the COMPANY exceed its Limit of Liability stated to item 2 of the Declarations plus the cost and expense of such appeal. (f) Loss Payable (1) Indemnity under this POLICY with respect to any OCCURRENCE shall not attach unless and until the INSURED and/or the issuers of OTHER INSURANCE shall have paid the greater of either: (A) ULTIMATE NET LOSS In the amount of the PER OCCURRENCE UNDERLYING AMOUNT; or (B) ULTIMATE NET LOSS with respect to any OCCURRENCE in toe amount covered by collectible OTHER INSURANCE; whichever is applicable, as provided in paragraph 0(a) hereof and, unless and until toe INSURED'S liability shail have been fixed and rendered certain either by final judgment against the INSURED after trial or by settlement approved in writing by the COMPANY. (2) The INSURED shall make a written demand for payment for any amount of toe ULTIMATE NET LOSS for which the COMPANY may be liable under this POLICY as scon as practicable after the INSURED'S liability shall have been fixed and rendered certain and after such amount shall have been paid by or on behalf of the INSURED. If any subsequent payments shall be made by the INSURED on account of the. same OCCURRENCE, additional written demands for payment should be made similarly from tone to time. Such losses shall be due and payable by the COMPANY within a reasonable time after they are respectively demanded and proven in conformity with this POLICY. (3) No person or organization shall have any right under this POLICY to join toe COMPANY as a party to any action against the NSURED, nor shall toe COMPANY be impleaded by toe INSURED or his legal representative. (g) Representation Such person or office as the NAMED INSURED shall designate in item 8 of the Declarations shall represent toe NAMED INSURED and any and all INSUREDS hereunder in all matters under this POLICY including, without limitation, payment of premium, negotiation of toe terms of renewal and toe adjustment, settlement and payment of CLAIMS. (h) Other insurance The insurance afforded by this POLICY shall be in excess of and shall not contribute with OTHER INSURANCE. Nothing herein shail be construed to mate this POLICY subject to the terms, conditions and limitations of any OTHER INSURANCE. AEIA t 19 of 16] GLD058597 0049-GLD-000058597 (i) SUBROGATION Inasmuch as this POLICY is excess coverage, the INSURED'S right of recovery against any person or other entity cannot be exclusively subrogated to the COMPANY, it is, therefore, understood and agreed that in case of any payment hereunder, the COMPANY will act in concert with all other interests (including the INSURED'S) concerned in the exercise of such rights of recovery. The apportioning of amounts which may be so recovered shai) follow the principle that any interests (including the INSURED'S) that shall have paid an amount over and above any payment hereunder, shall first be reimbursed up to the amount paid by them; the COMPANY is then to be reimbursed out of any balance then remaining up to the amount paid hereunder and, lastly, the interests (including the INSURED'S) of which finis coverage is in excess are entitled to claim the residue. If any Expenses necessary to the recovery of any such amounts shay be apportioned between or among the interests (including tee INSURED'S) concerned, in the ratio of their respective recoveries as finally settled. (j) Changes Notice to or knowledge possessed by any person shall not effect a waiver or a change in any part of this POLICY or estop tee COMPANY from asserting any right under the terms of this POLICY; nor shall the terms of this POLICY be waived or changed except by endorsement signed by the COMPLY or its authorized representative and issued to form a part of this POLICY. (k) Assignment Assignment of interest under this POLICY shall not bind the COMPANY unless and until its consent is endorsed hereon. (l) Cross Liability in tee event of CLAIMS being made by reason ot (1) PERSONAL INJURY suffered by an employee of one INSURED hereunder; or (2) damage to property belonging to any INSURED hereunder; for which another INSURED hereunder is ex may be liable, then this POLICY shall cover such INSURED, subject to the terms of this POLICY, against whom a CLAW is made or may be made in the same manner as if separate policies had been issued to each INSURED hereunder. Nothing contained herein shall operate to increase the COMPANY'S Limit of Uability as set forth in Item 2 of the Declarations. (m) Former Subsidiaries and Affiliates If any subsidiary or affiliate of tee NAMED INSURED, which is an INSURED hereunder by virtue of Definition (j) hereof, shall cease to be such a subsidiary or affiliate of the NAMED INSURED, then at tee time of such cessation the POLICY PERIOD shall automatically expire as to such former subsidiary or affiliate and. if the NAMED INSURED or such subsidiary or affiliate elects in advance of such expiration, an EXTENDED REPORT1MG PERIOD shall automatically incept as to such former subsidiary or affiliate and continue in force until expiration of the NAMED INSURED'S POLICY PERIOD under this POUCY without additional payment or refund of any premium. (n) Headings The descriptions in the headings and sub-headings of this POUCY are inserted solely for convenience and do not constitute any part of the terms hereof. (o) Insolvency (1) Bankruptcy or insolvency of the INSURED or the INSURED'S estate shall not relieve the COMPANY of any of its obligations hereunder. (2) The insolvency, bankruptcy, receivership or any refusal or inability to pay of the INSURED and/or any insurer shal not operate to: (A) lower the PER OCCURRENCE UNDERLYING AMOUNT; or (B) increase the COMPANY'S liability under this POLICY; and in no event and under no circumstances shall tee COMPANY assume or be deemed to have assumed the liabilities and/or responsibilities and/or obligations of the INSURED. AEIA 1 [10 of 16) GLD058598 0049-GLD-000058598 (p) Warranty The NAMED INSURED warrants and agrees as follows: (1). that it has no knowledge at the Inception Date stated in Item 4 of the Declarations of any fact or circumstance not disclosed to the COMPANY in the Application for this POLICY which is likely to give rise to a claim hereunder; and (2} that based upon reasonable inquiry and to the best of its knowledge and befief: (A) all information provided to the COMPANY in the Application for this POLICY is true and correct; and (6) no material information requested has been withheld. (q) Cancellation This POLICY may be cancelled: (t) at any time by the NAMED INSURED by delivering written notice to the COMPANY stating when, not less than thirty (30) days from the date the notice is delivered, cancellation shall be effective; or (2) at any time by the COMPANY by delivering written notice to the NAMED INSURED stating when, not less than ninety (90) days from the date notice was delivered, cancellation shall be effective; except, in the event of cancellation for nonpayment of premiums, such cancellation shall become effective fifteen (IS) days after tee date notice is delivered. Payment or tender of unearned premium is not a condtion of cancellation. Delivery by hand of such notice either by the NAMED INSURED or the COMPANY shall be sufficient delivery. Written notice shall be deemed sufficient delivery if sent by certified mail, return receipt requested, or by telex and receipt is acknowledged. The POLICY PERIOD shall end on tee effective date and hour of cancellation stated in the notice. In tee event of cancellation by tee INSURED, the premium retained by the COMPANY shall be calculated in accordance with the COMPANY'S short rate table which is attached hereto as Schedule C. In the event of cancellation by the COMPANY, the premium retained by tee COMPANY shall be calculated pro-rata based upon the duration of tee POLICY PERIOD. for purposes of notice required under this Condition (q) or pursuant to regulation, the offer by the COMPANY of renewal on terms or premiums different from those in effect during the POLICY PERIOD shall not constitute cancellation or nonrenewal of this POLICY by tee COMPANY. (r) Arbitration (1) Resolution of Disputes: All disputes between any 1NSURED(S) and tee COMPANY (hereafter referred to collectively as the "parties") arising out of or under this POLICY, whether arising before or after termination of this POLICY shall be submitted to arbitration in the manner set forth in this Condition (r). (2) Composition of Panel: Unless the parties agree upon a single arbitrator within fifteen (15) days after the receipt of a notice of Intention to arbitrate, all disputes shall be submitted to an arbitration panel composed of two arbitrators and an umpire, chosen in accordance with paragraph (3) or paragraphs (3) and (4) of this Condition (r). (3) Appointment of Arbitrators: The members of the arbitration panel shall be disinterested, active or retired business executives having knowledge relevant to the matters in dispute. Unless a single arbitrator is agreed upon by tee parties, the party requesting arbitration (hereafter referred to as the "initiating party") shad appoint an arbitrator and give written notice thereof, either by telex or by registered or certified mail, return receipt requested, to the other party (hereafter referred to as the "responding party") together with the notice of intention to arbitrate. If there is more than one initiating party or responding party such parties shall act collectively as a single initiating party or single responding party for all purposes including giving notice of intention to arbitrate or giving answer to such notice, and appointing an arbitrator. The notice of intention to arbitrate shall state with specificity tee full names and addresses of the parties, the POLICY pursuant to which arbitration is sought, tee nature of tee dispute and the relief sought. Within thirty (30) days after receiving the notice of intention to arbitrate, the responding party also shall appoint an arbitrator and notify the initiating party thereof in tee same manner as above. Before instituting a hearing, the two arbitrators so appointed shall choose an umpire from among such persons meeting the qualifications set forth in this paragraph (3). If. within twenty (20) days after the appointment of tee arbitrator chosen by tee responding paly or chosen in accordance with paragraph (4) of this Condition (r), the two arbitrators fail to agree upon the appointment of an umpire, the AEIA 1 tn of 16] GLD058599 0049-GLD-000058599 initiating party shall petition the President of the American Arbitration Association or his detegate to appoint the umpire. In the event that an arbitrator or the umpire withdraws from the panel or is unable to cSscharge his or her duties by reason of death, illness, or incompetency or otherwise, a replace* ment wilt be selected in the same manner as provided in the original appointment. (4) Failure of Party to Appoint Arbitrator: If the responding party Ms to appoint an arbitrator within thirty (30) days after receiving notice of intention to arbitrate, the initiating party shall appoint such arbitrator who shall then, together with the fust arbitrator appointed by the initiating party, choose an umpire as provided in paragraph (3) of this Condition (r). (5) Choice of Law and Forum: Any arbitration instituted pursuant to this Condition (r) shall be held in toe State of Connecticut and toe laws of that State shall govern the interpretation and application of this POLICY, except insofar as such laws may prohibit coverage of punitive or exemplary damages hereunder, provided, however, tost toe terms of this POLICY are to be construed in an evenhanded fashion as between toe INSURED aid the COMPANY; without limitation, where the language of this POLICY is deemed to be ambiguous or otherwise unclear, toe issue shall be resolved in toe manner most consistent with toe relevant terms (wfthout regard to authorship of toe language, without any presumption or arbitrary interpretation or construction in favor of either the INSURED or the COM PANY) and in accordance with the intent of the parties. In reaching any decision, the panel shall give due consideration to the customs and usages of the insurance Industry. (6) Submission of Dispute to Panel: The initiating party shall submit its initial brief within twenty (20) days from appointment of toe umpire. The responding party shall submit its brief within twenty (20) days after receipt of the initiating party's brief and the initiating party may submit a reply brief within ten (10) days after receipt of toe responding party's brief. (7) Procedure Governing Arbitration: Alt proceedings before the panel shai be Informal and toe panel shall not be bound by strict rules of legal procedure or evidence. The panel shall have toe power to fix all procedural rules relating to the arbitration proceeding but cross-examination and rebuttal shall be allowed. (8) Arbitration Award: The arbitration panel shall render its decision within sixty (60) days after termination of toe arbitration proceeding which decision shall be in writing and may state the reasons therefor. The decision of the majority of toe panel shall be final and binding on the parties to the arbitration and may include interest at appropriate market rate(s) and any costs of the arbitration, including a reasonable allowance for attorney's foes. The panel shall not itself assess and award punitive or exemplary damages. Judgment may be entered upon toe award in any state or .federal court having jurisdiction thereof. (S) Cost of Arbitration: Each party shall bear the expense of its own arbitrator and shall jointly and equally bear with toe other party the expense of the umpire. In the event that both arbitrators are chosen by toe initiating party, as provided for in paragraph (4) of this Condition (r), the initiating party and the responding party shall each pay half of toe expenses of both arbitrators and the umpire. The remaining costs of toe arbitration proceeding shall be allocated by the panel. (s) Currency (1) The premiums and losses under this POLICY are payable, and the amounts set forth in toe Oecla rations are expressed, in United States currency. (2) If judgment is rendered or settlement is denominated, or another element of ULTIMATE NET LOSS is stated, in a currency other than United States currency, payment under this POLICY shall be made in United States currency at the rate of exchange prevailing on the date toe final judgment is rendered, toe amount of toe settlement is agreed upon or the other element of ULTIMATE NET LOSS is due, respectively. AEIA 1 {12 of 16] GLD058600 0049-GLD-000058600 V. DEFINITIONS As used in this POLICY: (a) "ADVERTISING OFFENSE' means DAMAGES arising out of the INSURED'S advertising activities on account of libei, slander, defamation, Evasion of right of privacy, piracy, unfair competition, idea misap propriation under an implied contract, or infringement of copyright, tide or slogan (other than a patent) committed in any advertisement, publicity article, broadcast or telecast; (b) "AIRCRAFT' means any heavier than air or lighter than air aircraft designed to transport any person or property, missile or spacecraft; (c) "ANNUAL PERIOD'' means the period of twelve months commencing at: (1) the effective date of cancellation or the Expiration Date of the POLICY PERIOD: or (2) the expiration date of any prior ANNUAL PERIOD; (d) "AUTOMOBILE" means a land motor vehicle, trailer or semi-trailer; (e) "CLAIM" means: (1) any written demand, suit or proceeding against any INSURED by a specifically identified person, entity or asserted class ter DAMAGES because of PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE; or (2) any written notice of PERSONAL INJURY. PROPERTY DAMAGE or ADVERTISING OFFENSE by any specifically identified person, entity or asserted class; (f) "COMPANY" means the American Excess Insurance Association on behalf of its member insurance companies as set forth in Endorsement Number 1 to this POLICY; (g) "DAMAGES" mean all forms of compensatory damages, and punitive-or exemplary damages, but "DAM AGES" do not include governmental, civil or criminal fines or penalties or DEFENSE EXPENSES; (h) "DEFENSE EXPENSES" means reasonable aid necessary legal fees and other expenses which are incurred by or on behalf of the ASSURED in the investigation, adjustment, settlement or litigation of claims and which are pad as a consequence of an OCCURRENCE covered hereunder; excluding ail salaries of tiie INSURED'S employees, officers and cfirectors and office expenses; (i) "EXTENDED REPORTING PERIOD" means the period, if applicable, commencing, with respect to the INSURED, at the effective date of cancellation or the Expiration Date staled in Item 4 of the Declarations or, with respect to a former subsidiary or affiliate of the NAMED INSURED, at the automatic expiration date provided ter in Condition (m) hereof and terminating as provided in paragraph 1(b) or Condition (m) hereof, whichever is applicable; (j) "INSURED" means the following to the extent set forth below: (t) the NAMED INSURED and, if the NAMED INSURED is designated in item 1 of the Declarations as a partnership or joint venture, the partnership or joint venture so designated and each partner or member thereof but only with respect to his or its liability as a partner or member; (2) (A) any subsidiary or affiliate of the NAMED INSURED whose accounts, as of the date of the financial statements of the NAMED INSURED submitted to the COMPANY most recently prior to the rating of the premium for the POLICY PERIOD: (i) are consolidated in the financial statements of the NAMED 1N9JRED in accordance with generally accepted accounting principles in the United States of America (or, in the case of any foreiyi NAMED INSURED, any subsidiary or affiliate whose accounts would be consolidated in the financial statements of such NAMED INSURED if such accounts would have been consolidated in accordance with generally accepted accounting principles in the United States of America); or (ii) were eligible for such consolidation and whose financial statements were submitted to the COMPANY as of such date; and/or (B) any subsidiary or affiliate of the NAMED INSURED listed on Schedule A hereto; (3) (A) any executive officer, other employee or director of; or (B) any person or organization while acting as real estate manager for. any person or entity named in paragraph (1) or (2) of this Definition (j) while acting within the scope of his or its duties as such; except with respect to the ownership, maintenance or use, inducting loading and unloading, of any AUTOMOBILE: ABA 1 [13 of 16] GLD058601 0049-GLD-000058601 (4) with respect to the ownership, maintenance or use, including loading and unloading, of any AUTO MOBILE: (A) owned by, lent to or hired for use by or on behalf of any person or entity named in paragraph (1) or (2) of this Definition fl), any person (including an employee of such person or entity) while using such AUTOMOBILE and any person or organization legally responsible for the use thereof, provided its actual use is with the permission of such person or entity; (B) not owned by, lent to or hired for use by or on behalf of any person or entity named in paragraph (1) or (2) of this Definition <]). any executive officer, director, partner, employee or stockholder of such person or entity, but only while such AUTOMOBILE is being used in the business of such person or entity; but none of the following shall be an INSURED under this paragraph (4) of Definition (j): (C) any person while employed in or otherwise engaged in duties in connection with an AUTO MOBILE sales agency, repair shop, service station, storage garage or public parking place not .operated by any person or entity named in paragraph (1) or (2) of this Definition (j); (D) the owner or lessee (of whom such person or entity is sub-lessee) of any AUTOMOBILE hired for use by or on behalf of or lent to such person or entity, and any agent or employee of such owner or lessee; (5) any person or organization except: (A) any organization acquired or formed by or merged with an INSURED after the inception of the POLICY PERIOD; and/or (B) where such other person or organization is engaged in a joint venture with the NAMED INSURED; to whom any person or entity named in paragraph (1) or (2) of this Definition Q) is obligated by virtue of a written contract or agreement to provide insurance such as is afforded by this POLICY, but only to the extent erf such obligation and only with respect to operations (other than commercial insurance operations) performed by such person or entity or facilities owned or used by such person or entity; (6) it is agreed to automatically include as an INSURED without adjustment of premium under this POLICY, any entity acquired or formed by or merged with an INSURED (a "Potential Additional INSURED") subsequent to the Inception Date stated in Item 4 of the Declarations and prior to the effective date of cancellation of the POUCY or the Expiration Date stated In Item 4 of the Declarations provided that the lair value of the sum of all cash, securities, assumed indebtedness and other consideration expended by all INSUREDS for any such acquisition, formation or merger does not exceed 5% of the total assets of the NAMED INSURED and its consolidated subsidiaries and affiliates as most recently reported to tile COMPANY for rating purposes prior to the POLICY PERIOD, and provided further, that neither the operations of the Potential Additional INSURED prior to such acquisition, formation or merger nor the resultant combined or consolidated operations of such INSURED and the Potential Additional INSURED subsequent to such acquisition, formation or merger are materially different from those of such INSURED prior to such acquisition, formation or merger Unless notice -- to the COMPANY shall have been given and any additional premium required by the COMPANY shall have been paid in respect of the acquisition or formation of or merger with any Potential Additional INSURED not meeting the criteria set forth in this paragraph (6) of Definition (j), such Potential Additional INSURED shall not be an INSURED hereunder; provided, however, it is understood and agreed that the COMPANY shall have no obligation to insure such Potential Additional INSURED hereunder and may in its sole discretion decline to provide insurance for such Potential Additional INSURED not meeting the criteria set forth in this paragraph (6). With respect to any OCCURRENCE giving rise to liabifity of any Potential Additional INSURED that qualifies to be an INSURED hereunder, the RETROACTIVE DATE shall be: (A) in the case of automatic inclusion, the date of acquisition, formation or merger of the Potential Additional INSURED by an INSURED; or (B) in the case where an additional premium is paid, the date of acquisition, formation or merger of the Potential Additional INSURED by an INSURED or such other date as may be agreed between the NAMED INSURED and the COMPANY; (k) "INSURED'S PRODUCTS" means: (1) goods or products manufactured, sold, tested, handled or distributed by the INSURED or others trading under its name if the end-use thereof occurs after possession of such goods or products has been relinquished to others by the INSURED or by others trading under its name and if such use occurs away from premises owned, rented or controlled by the INSURED; provided such goods or products shall be deemed to include any container thereof other than an AUTOMOBILE, WATER CRAFT or AIRCRAFT; and/or ABA t [14 of 16) / ( \ GLD058602 0049-GLD-000058602 (2) materials that were the subject of completed or abandoned OPERATIONS of the INSURED; (!) "NAMED INSURED" means the person or organization first named in Item 1 of the Declarations; (m) "OCCURRENCE" means: (1) an event or a continuous, intermittent or repeated exposure to conditions which causes, allegedly causes or is deemed to cause PERSONAL INJURY or PROPERTY DAMAGE or gives rise, allegedly gives rise or is deemed to give rise to ADVERTISING OFFENSE, where: (A) the event or conditions commence subsequent to the RETROACTIVE DATE and prior to the effective date of cancellation or the Expiration Date stated in Item 4 of the Declarations; (B) all of such PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE commences subsequent to the RETROACTIVE DATE; and (C) some of such PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE com mences prior to the effective date of cancellation or the Expiration Date stated in Item 4 of tie Declarations; or (2) use of an INSURED'S PRODUCT: (A) which causes, allegedly causes or is deemed to cause PERSONAL INJURY or PROPERTY DAMAGE where some of such PERSONAL INJURY or PROPERTY DAMAGE commences prior to tie effective date of cancellation or the Expiration Date stated in Item 4 of the Declarations; and, except as may be specifically agreed between the NAMED INSURED and the COMRANY in an endorsement hereto: (B) where all PERSONAL INJURY and PROPERTY DAMAGE resulting from such use commences entirely at or subsequent to tie RETROACTIVE DATE; and (C) where tie INSURED at the Inception Date stated in Item 4 of the Declarations has no knowledge or notice of any defect or hazard or aBeged defect or hazard associated with the INSURED'S PRODUCTS or similar products causing or allegedly causing such PERSONAL INJURY or PROP ERTY DAMAGE: and which PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE is reasonably neither expected nor intended by the INSURED. Where the INSURED becomes liable for a series of and/or several losses, PERSONAL INJURIES, PROP ERTY DAMAGES or ADVERTISING OFFENSES which result, directly or indirectly from the same or sub stantially the sane event, conditions, cause, defect or hazard or alleged defect or hazard or failure to warn or alleged failure to warn of such, al such losses, PERSONAL INJURIES, PROPERTY DAMAGES or ADVERTISING OFFENSES shall be added together and shall be treated as one OCCURRENCE irrespec tive of the period or area over which the losses, PERSONAL INJURIES, PROPERTY DAMAGES or AD VERTISING OFFENSES occur or the number of such losses, PERSONAL INJURIES, PROPERTY DAMAGES or ADVERTISING OFFENSES. With respect to losses, PERSONAL INJURIES. PROPERTY DAMAGES or ADVERTISING OFFENSES re sulting or alleged to result from the design, formulation, manufacture, distribution, use, operation, main tenance or repair of an INSURED'S PRODUCT or the failure to warn as to the use, operation or maintenance of an INSURED'S PRODUCT, the term "the same or substantially the same event, conditions, cause, defect or hazard or alleged defect or hazard or failure to warn or alleged failure to warn of such" shall mean any such design, formulation, manufacture, distribution, use, operation, maintenance, repair or failure to warn, as the case may be, from which such losses, PERSONAL INJURIES, PROPERTY DAM AGES or ADVERTISING OFFENSES directly or indirectly result; (n) "OPERATIONS" means operations of the INSURED away from premises owned, rented or controlled by the INSURED and includes materials, parts or equipment furnished in connection therewith. OPERATIONS shall be deemed completed at the earliest of the following times: (1) when all OPERATIONS to be performed by or on behalf of the INSURED under the contract have been completed; (2) when all OPERATIONS to be performed by or on behalf of the INSURED at the site of the OPERA TIONS have been completed; or (3) when the portion of the work out of which the injury or damages arise has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing OPERATIONS for a principal as a part of the same project; AEIA1 [15 of 16] GLD058603 0049-GLD-000058603 (o) "OTHER INSURANCE" means any other insurance available to the INSURED which, irrespective of the existence of this POLICY, indemnifies the INSURED for, or pays on behalf of the INSURED, DAMAGES or DEFENSE EXPENSES with respect to an OCCURRENCE for which DAMAGES or DEFENSE EXPENSES, depending on the amounts) thereof, may be indemnifiable or payable under this POLICY; except OTHER INSURANCE does not include insurance under any policy or policies issued by the COMPANY or insurance under any policy or policies in which this POLICY is specifically scheduled as undertying insurance or under any policy which is scheduled In this POLICY as insurance in excess of this POLICY; (p) "PER OCCURRENCE UNDERLYING AMOUNT" means the amount stated in item 3 of the Declarations; (q) "PERSONAL INJURY" means: (1) bodily injury, shock, fright, mental injury, mental anguish, disability, sickness or disease sustained by any person, including death at any time resulting therefrom; (2) injury arising out of false arrest, detendon or imprisonment, malicious prosecution, wrongful entry or eviction or other invasion of the right of private occupancy, humiliation or discrimination because of race, religion, age, sex or physical disability (unless insurance therefor is prohibited by law); and (3) except with respect to injury occurring in the course of the INSURED'S advertising activities, injury arising out of the publication or utterance of a libel or slander or erf other defamatory or disparaging material, or a publication or utterance in violation of an individual's right of privacy; (r) "POLICY" means all the terms of Insurance issued by the COMPANY to the NAMED INSURED for the POLICY PERIOD set forth in Item 4 of the Declarations including the Application herefor, tee Declarations and Schedules hereto and any Endorsements at any time endorsed hereon; (s) ' 'POLICY PERIOO" means the period set forth in item 4 of the Declarations commencing with the inception Date and terminating with the effective date erf cancellation or the Expiration Date; (t) ` POLLUTANT" means any sofid, liquid, gaseous or thermal irritant, contaminant or toxic or hazardous substance or any substance which may, does or is alleged to affect adversely the environment, property, persons or animals, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and WASTE; (u) "PROPERTY DAMAGE" means: (1) physical injury to or destruction of tangible property including the loss of use thereof at any time resulting therefrom; or (2) loss ol use of tangible property which has not been physically injured or destroyed; (v) "RETROACTIVE DATE" means the time and date stated In Item 5 of the Declarations or, with respect to any Potential Additional INSURED, the date provided for in paragraph (6) of Definition (j); (w) "ULTIMATE NET LOSS" means the total sum which the INSURED shall become obligated to pay as DAMAGES and/or DEFENSE EXPENSES on account of PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE, either by final judgment against the INSURED after tried or by settlement ap proved in writing by the COMPANY after making proper deduction for all recoveries and salvages coilectible; (x) ".WASTE!.1, .means POLLUTANTSjhet are .or are to. be disposed of or stored for or as disposal, or are tc be or are be'rtg recycled, reconditioned or reclaimed; (y) "WATERCRAFT" means any ship or vessel of whatever type including, but not limited to, cargo vessels, passenger vessels, other vessels used for transport, towboats and barges, vessels used in the construc tion of pipelines, platforms or other facilities, storage vessels, tanker vessels, drill ships, offshore drilling platforms, drilling barges (including, without limitation, submersible drill barges, seml-submersible drift barges and self-elevating drill barges) and all other vessels of whatever nature and description, all whether or not self-propelled. IN WITNESS WHEREOF, each of the members of the COMPANY has caused this POLICY to be signed on its behalf by the President and a Secretary of the COMPANY and countersigned on the Declarations Page by a duly authorized agent of the COMPANY. ( AEIA t [16 of 16] GLD058604 0049-GLD-000058604 Schedules A. Subsidiaries or affiliates which form part of the NAMED INSURED -- See Definition (j)(2XB) B. Additional premiums for the EXTENDED REPORTING PERIOD -- See Coverage (b) Year of Extended Reporting Period PerCentof Premium Stated in items ol theDeclarations 1st year.. ................. 12% 2nd year. ............... _L0% 3rd year . ................. JL% Year of Extended Reporting Period PerCentof Premium Stated m items of the Declarations 4th year . Sth year .................... _% C. COMPANY'S Short Rate Table -- See Condition (q) Oms Policy In Force PerCentof Premium Statedin Item 6 of the Declarations 1............. ....................... 5% OeysPoiley In Force PerCentof Premium Stated In ItemS of the Declarations 95- 98......... ........................ 37% 2............. ......................... 3- 4............. ....................... 6 T 99-102 ....... ......................... 38 103-105 ................................. 39 5- 6............. ....................... 7-8............. ......................... 8 9 106-109 ....... ........................ 40 110-113 ....... ......................... 41 9-10............. ......................... 10 11-12............. 114-116 ....... ......................... 42 117-120 ................................. 43 13-14...................................... 12 121-124 ....... 15-16............. 125-127 .... ......................... 45 17-18 ............. ......................... 14 19-20 ............. ......................... 15 128-131 ....... ......................... 46 132-135 .... ......................... 47 21-22 ............. ......................... 23-25 ............. 26-29 ............. ......................... 16 18 136-138 ....... ......................... 139-142 ....... ......................... 143-146 .... ...................... 48 49 SO 30-32............ 33-36............. ......................... 37-40 ............. ......................... 41-43 ............ ......................... 44-47 ............ ......................... 48-51 ...................................... 52-54 ............. ......................... 20 21 22 23 24 25 147-149 .... ......................... 150-153 ...... ......................... 154-156 .... ......................... 157-160 .... ......................... 161-164 .... ......................... 165-167 .... ......................... 168-171 .... ......................... 51 52 S3 54 $5 56 57 55-58 ............. ......................... 59-62 ...................................... 83-65 ............ ......................... 66-69...................................... 70-73............. ......................... 20 27 28 29 30 172-175 .... ......................... 176-178 .... ......................... 179-182 .... ......................... 183-187 .... ......................... 188-191 .... ......................... 56 59 60 6t 62 74-76 ............ 77-80 ............ ......................... 81-83 ............ ......................... 84-87 ............ ......................... 32 33 34 192-196 .... ......................... 197-200 .... ......................... 201-205 .... ......................... 206-209 .... 63 64 65 88-91 ........... ......................... 35 92-94............ ......................... 36 210-214 .... ......................... 67 215-218 .... ......................... 68 Days Policy in Force Percent of Premium Slated in item 6 of the Declarations 219-223 ................................ 69% 224-228 ................................. 70 229-232 ........ 233-237 ........ 238-241 ................................ 73 242-246 ....... 247-250 ................................. 75 251-255 ........ 256-260 ................................. 77 261-264 ....... 265-269 .... ......................... 79 270-273 ................................. 80 274-278 ................................. 81 279-282 .... ......................... 82 283-287 .... ......................... 83 288-291 ....... ......................... 84 292-296 ....... ......................... 85 297-301 .... ......................... 86 302-305 .... 306-310 .... ......................... 88 311-314 .... ......................... 89 315-319 .... ......................... 90 320-323 .... ......................... 91 324-328 .... ......................... 92 329-332 .... ......................... 93 333-337 .... ......................... 94 338-342 .... ......................... 95 343-346 .... ......................... 96 347-351 .... ......................... 97 352-355 .... ......................... 98 356-360 .... 361-365 .... ......................... 100 D. WATERCRAFT and risks not excluded under Exclusion (b). TUGBOAT "SATIN LADY" IN BALTIMORE, MD. 3 BARGES IN BALTIMORE, MO_________________ OUTBOARD IN JOLIET, XL _____ ABA 13 [1 of 1] GLD058605 0049-GLD-000058605 LIABILITY OF INSURERS ENDORSEMENT Endorsement Number 1 Effective Date of Endorsement_______OCTOBER 1ST 1988 Attached to and forming part of POLICY Number NAMED INSURED HANSON INDUSTRIES HR0000276S8 it is hereby understood and agreed between the NAMED INSURED and the insurance companies listed below, which are the members of American Excess insurance Association (referred to in the POLICY as "the COM* PANY"). as follows: (1) the insurance afforded by this POLICY is provided by the several separate insurance companies listed beicw (hereafter the "insurance companies") and not by the American Excess Insurance Association which is not an insurance company; (2) the liability of the insurance companies shall be several and not pint. The liability of each insurance company shall be separate and apart from the liabilities of all other insurance companies and in no event shall any insurance company participate in the liability of any other insurance company; (3) the maximum Bability of all the insurance companies shall be the total of the percentage participations of such insurance companies as listed below, which total of percentage participations is -i00-% of $Z5J1QU1GCL; (4) each insurance company shall only be liable under the POLICY for the percentage, set opposite its name below, of any ULTIMATE NET LOSS; provided that: (A) in the event that the total of the percentage participations of the insurance companies listed below is less than 100% of $ ?* .nnn nno then, in respect of any ULTIMATE NET LOSS, irrespective of the amount thereof, the INSURED shall have no right of recovery under this POLICY for the uninsured percentage of such ULTIMATE NET LOSS, which uninsured percentage is the percentage by which such total of the percentage participations is less than 100%; (8) in no event shall any insurance company pay more than the percentage set opposite its name of the amount stated in Item 2 of the Declarations as the COMPANY'S Limit of Liability; (C) in the event that any insurance company for any reason whatsoever, including but not limited to the insolvency or financial impairment of such insurance company, is unable or refuses to indemnify any INSURED in respect of the percentage of any ULTIMATE NET LOSS for which such insurance company is liable, no other insurance company or companies shall be liable for such percentage and the INSURED shall have right of recovery of such percentage only from the insurance company which is so unable or so refuses. INSURANCE COMPANIES PERCENTAGE PARTICIPATION THE AETNA CASUALTY AND SURETY COMPANY AMERICAN HOME ASSURANCE COMPANY CONTINENTAL CASUALTY COMPANY FEDERAL INSURANCE COMPANY THE CONTINENTAL INSURANCE COMPANY UNITED STATES PIRE INSURANCE COMPANY GENERAL STAR NATIONAL INSURANCE COMPANY THE HOME INSURANCE COMPANY INSURANCE COMPANY OF NORTH AMERICA MARYLAND CASUALTY COMPANY NORTH AMERICAN COMPANY FOR PROPERTY AND CASUALTY INSURANCE ROYAL INSURANCE COMPANY OF AMERICA THE TRAVELERS INDEMNITY COMPANY ZURICH INSURANCE COMPANY, U.S. BRANCH 16.33% 7.50% 7.50% 8.83% 7.50% 7.50% 1.33% 1.33% 13.34% 1.50% 1.50% 4.00% 13.34% 8.50% AEIA2 President Signature of Authorized Representative Farmington Management, Inc. [1 of 1] GLD058606 0049-GLD-000058606 * MANDATORY ENDORSEMENT (For Use on Policies Issued In New York) It is agreed that such insurance as is afforded by the Policy is amended as follows: 1. "Pay On Behalf Of" is substituted for "Indemnify" whenever such word appears in the Policy. 2. By the addition of "... or the licensed agent of the Company ..." after the word "... Company ..." in the seventh (7th) line of IV Condition (c) Notice of Occurrence or Claim. 3. IV condition (q) Cancellation is amended to read as follows: "(q) Cancellation of Non-Renewal This POLICY may be cancelled: (1) at any time by the NAMED INSURED by delivering written notice to the COMPANY stating when cancellation shall be effective; or (2) by the COMPANY by delivering written notice to the NAMED INSURED stating when, not less than ninety (90) days from the date notice was delivered, cancellation shall be effective; except, in the event of cancellation for nonpayment of premiums, such cancellation shall become effective fifteen (15) days after the date notice is delivered. Payment or tender of unearned premium is not a condition of cancellation. After the new or renewal POLICY has been in force for more than sixty (60) days, the POLICY may be cancelled by the COMPANY only if: (a) required pursuant to a program approved by the Superintendent of Insurance of the State of New York as necessary because a continuation of the present premium volume would be hazardous to the interests of policyholders of the COMPANY, its creditors or the public, or 1- - GLD058607 0049-GLD-000058607 ( (b) the cancellation is based on one or more of the following reasons: (A) Non-payment of premium, (B) Conviction of a crime arising out of acts increasing the hazard insured against, (C) Discovery of fraud or material misrepresentation in obtaining the POLICY or in the presentation of a claim thereunder, (D) Discovery of willful or reckless acts or omissions increasing the hazard insured against, (E) Physical changes in the property insured occurring after issuance or last annual anniversary date of the POLICY which result in the property becoming uninsurable in accordance with the COMPANY'S objective, uniformly applied underwriting standards in effect at the time the POLICY was issued or last voluntarily renewed, or (P) A determination by the Superintendent of Insurance of the State of New York that the continuation of the POLICY would violate or would place the COMPANY in violation of the laws of the State of New York. In the event the POLICY is non-renewed by the COMPANY, written notice of its intention to non-renew shall be delivered by the COMPANY to the NAMED INSURED at least sixty (60) days prior to the termination or renewal date of the POLICY. Such notice shall state the reasons for non-renewal. No increase in rates for such POLICY shall be imposed unless written notice of intention thereof is delivered to the NAMED INSURED at least sixty (60) days prior to the anniversary date of such POLICY. 2- - GLD058608 0049-GLD-000058608 Delivery by hand of such notice either by the NAMED INSURED or the COMPANY shall be sufficient delivery. Written notice shall be deemed sufficient delivery if sent by certified mail, return receipt requested, or by telex and receipt is acknowledged. The POLICY PERIOD shall end on the effective date and hour of cancellation stated in the notice. In the event of cancellation by the INSURED, the premium retained by the COMPANY shall be calculated in accordance with the COMPANY'S short rate table which is attached hereto as Schedule C. In the event of cancellation by the COMPANY, the premium retained by the COMPANY shall be calculated pro-rata based upon the duration of the POLICY PERIOD. For purposes of notice required under this condition (q) or pursuant to regulation, the offer by the COMPANY of renewal on terms or premiums different from those in effect during the POLICY PERIOD shall not constitute cancellation or non-renewal of this POLICY by the COMPANY." A. The definition of (g) "DAMAGES" of V Definitions is amended to read as follows r "DAMAGES" means damages on account of PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE, but "DAMAGES" do not include governmental, civil or criminal fines or penalties and "DEFENSE EXPENSES". 5. Subparagraph 2 of (q) "PERSONAL INJURY" is amended to read as follows; "(2) injury arising out of the false arrest, detention or imprisonment, malicious prosecution, wrongful entry or eviction or other invasion of the right of private occupancy, or humiliation; and ..." -3- GLD058609 0049-GLD-000058609 It is further agreed that as a consequence of this amendment, coverage for injury arising out of the discrimination is excluded and is not covered by the Policy. ( AEIA.-S-6 4- GLD058610 0049-GLD-000058610 j Ii American Excess Insurance Association j j (This application to be used for applicants domiciled in New York State only} THIS IS A REPORTED OCCURRENCE POLICY WHICH CONTAINS CERTAIN FEATURES THAT ARE ANALOGOUS TO THE ONES FOUND IN CLAIMS MADE POLICIES. PLEASE READ THE ENTIRE POLICY CAREFULLY. "DEFENSE EXPENSES" ARE INCLUDED IN THE LIMITS OF LIABILITY OF THE POUCY AND ARE IN CLUDED IN THE "PER OCCURRENCE UNDERLYING AMOUNT". This Policy Application must be completed in its entirety. When appropriate, questions herein may be an swered by specific reference to Form 10K sections(s) or other material attached hereto. 1. (a) Name and Address of Applicant (To appear as Named Insured if policy is issued): HANSON INDUSTRIES______________________________________ 410 PARK AVENUE ( NEW YORK. N.Y. 10022 (b) State of Incorporation: (c) Effective Date of Coverage:OCTOBER 1, 1988 2. Subsidiaries or affiliates of Applicant whose accounts are consolidated in the financial statements of the Applicant (attach list or mate reference to listing in Form fOK or Annual Report of Applicant). SEE EXHIBIT #1 3. If Applicant is foreign, attach list of subsidiaries or affiliates whose accounts would have been consoli dated in accordance with generally accepted accounting principles in the United States. 4. List on Schedule A (to be attached to and form a part of toe policy when issued) any other subsidiary, affiliate, associated company or joint venture to be insured. i i AEIA-3-NY 1 1 GLD058611 0049-GLD-000058611 5. if other than the Named Insured above shall represent all Insureds in all matters under this policy (such as but not limited to: premium payment, negotiation of renewal terms, payment of claims), indicate name and address (to appear as Named Insured's representative if policy is issued): 6. Describe each joint venture in which die Appicant has an interest greater than 10% and/or which has assets in excess of $25,000,000: Project Name Participant Brief Description of Joint Venture NONE_____________ 7. Attach a copy of the latest Annual Report and Form 10K (or the equivalent if not applicable) of the Applicant and each company listed on Schedule A for the most recent year. 8. Estimates of: - (a) Annual Payroll (in US. dollars) 1-USA $ ft&S,CU57-015 2-Canadian $ -INCLUDED- 3-Foreign S-50 ,.900.yQOO..... (b) Annual Sales (in US. dollars) EXCLUDING AIRCRAFT PRODUCTS: 1-USA $ ^-,-4 ftQ-j-5 9-1-rOn02-Canadian $ __4? j ,WP 3-Foreign $ 97,207,700 Describe any "lnter*Company Sales" exceeding 10% of the total: ------------------ N/4-------------------------------------------------------------------------------------------------------------------------- (c) Number of Employees 1 -USA S 71,950. 2-CanacJian $ -INCLUDED ... 3-Foreign $ -3_3_QQ (d) 1. Annual Advertising Expenditure (in U.S. dollars) Si 45.500.000.______________________________________________________ AEIA-3 2 GLD058612 0049-GLD-000058612 2. Type of media use and proportion of total expenditure on each MAGAZINES - 19%: TRADE JOURNALS - 11%; EXHIBITS - 7%; PROMOTIONAL .ATURE - 12%; TELEVISION - 18%: RADIO - 4%: NEWSPAPER - 13%: OTHERS - 16% (e) If Applicant has any exposure under the following, indicate payrolls: 1. .fnn* At* 110,000 (CODE _7028) 2, Federal Employers Liability Act NO KNOWN PAYROLLS 9. Automotive power units: (estimated total owned & leased by type) (a) Private passenger 1950 _______________ Trucks and Tractors 18.13 School h..sss NONE KNOWN_____________ Taxi-Livery NONE KNOWN (b) Type of cargo hauled (elaborate where inflammable/explosive substances hauled) INSU-REDS-_Q_WN PRODUCTS AND LIMITED COMMON -CARR TER (m MFfil (c) Give details of long haul (over 500 miles -- one way) operations A&Sf ANDERSON-HTCKEY; BROWN MOT.DING_^ WSL MFC; ..CnUIMRIA T.TfitiTTNC AND PRESCOLTTE WILL HAUL. OWN .GOODS IN EXCESS OF 500,,Mn.K ON. SOME TRIPS _!__________________________________________________________ 10. Description of Operations: (a) Describe any details of operations not otherwise contained in the attached Form 10K or annual report (e.g., occupancy type risks -- number and size: construction type risks -- tunnel and dam work -- turnkey; utilities -- dams; etc.): SF.E- EXHIBIT..#! (b) Describe any discontinued operations or sold entities tor which coverage is required. Oescribe products and the disposition of product liability: SEE EXHIBIT # 2 (c) Describe any areas of expected expansion, change, or new products in next 6 months: HANSON INDUSTRIES HAS, AND WILL CONTINUE TO ACQUIRE COMPANIES WHICH FIT INTO ITS MAJOR BUSINESS SEGMENTS WHEN THE. PROPER OPPORTUNITY ARISES. GLD058613 0049-GLD-000058613 11. (a) Describe any non-owned, owned, leased or chartered watercraft or watercraft risks for which cov erage is requested: TUG BOAT "SATIN LADY" (BALTIMORE, MD^ 3 BARGES (BALTIMORE, MD)___________________________________ 1 OUTBOARD (JOLIET, IL) <b) Describe any railroad exposures including details of any facilities/operations owned or operated (other than incidental sidings and premises grade crossings): INCIDENTAL SIDE TRACK AGREEMENTS ONLY _________ (c) Describe any inha-city light-rail exposure (e.g., subway, street car. etc.) tor which coverage is requested: NO KNOWN EXPOSURE Description of Operations Number of Passenger Cars Miles of Track Number of Passengers Annually (d) Describe any bus operations for which coverage is requested: Description of Operations Number of Buses fvflles TVavelled inter-city ................................... ........................ intra-city ___________________ _______________ School Buses ___________________ _______________ Tours ___________________ _______________ Other ........... ........................... Number of Passengers Annually ......................... _____________ _____: _____________ ......................... AEIA-3 4 4 GLD058614 0049-GLD-000058614 12. With respect to malpractice and professional liability exposures, state: A. 1. Medical (incidental to other operations): (a) Number of doctors employed:----------t\ FULL- TIME-------------- 1------------------------------ (b) Number of nurses employed:22----------------------------------------------------------------------------------- (c) if Hospital or Medical facilities are maintained by the Applicant, give location, number of beds, occupancy rate and other pertinent information: N/A_________________________________________ (d) Do any patients, not employees of the Applicant, use the services of such doctors, nurses or hospitals? -- -- ........ - - -- N/A Indicated percentage of non-employee patients 2. Medical (other than incidental): INCIDENTAL ONLY------------------------------------------------- (a) List all hospitals or medical facilities showing location, number of beds and occupancy rate, outpatient visits: ( N/A (b) List nursing homes operated showing number of beds: N/A_________________ _as 5. Non-medical (e.g., Architects, Engineers, Accountants, Lawyers, etc.). Describe extent to which such services are provided to third parties: NO KNflTJN. F.ypnfiircBS AEIA-3 5 ..... GLD058615 0049-GLD-000058615 13. Attach a list or describe below the products manufactured, handled, distributed or sold or services performed under me following classifications: Classification (a) Aircraft and/or Aerospace Products or any material or substance supplied di rectly to or lor the use try the Aircraft and/or Aero space Industry (b) Pharmaceuticals -- Medical (Submit lists of prescription and nonprescription medical care products) (c) Birth control drugs or devices (d) Chemical and petrochem icals (e) Nuclear energy (f) Pollution control devices (g) Other products, or major services performed Description SEE EXHIBIT #1 Annual Sales Domestic $ Foreign $ 14. Peal & Personal Property: (over $10,000,000 in value per location) (a) Schedule locations of leased premises and indicate use and if Applicant is held harmless and/or named as an additional insured in landlords policy: NONE KNOWN___________ _ (b) Schedule locations where personaf property of others is in Applicant's Care, custody or control, (e.g., Data Processing Equipment, Leased Machinery or Equipment, Goods for Storage or Processing, etc.): AEIA-3 6 <b GLD058616 0049-GLD-000058616 15. CorrtractuaJ/HoW Harmfess/lndernnity Agreements -- provide details of any which could reasonably be considered to be outside of the scope of those agreements normally entered into by the Applicant in the normal course of operations and any other such agreements which may be material to the Appli cant's legal liability or where the sole negligence of the indemnity fs assumed: MO KNOWN EXPOSURES' OUTSIDE OF THOSE WHICH ARE NORMALLY ENTERED INTO BY THE APPLICANT. 16. Describe loss control and loss prevention measures which Applicant employs and would like the under-, writer to consider. Attach a copy of the program if appropriate, is the program self-administered? If administered by a service company or insurance company, name of administrator: VARIOUS ENGINEERING SERVICES ARE UTILIZED BY HANSON TO PROVIDE LOSS. CONTROL AS SISTANCE INCLUDING _F. _S_, JAMES^JtATLSCQ_AND____ SELF-ADMINISTERED PROGRAMS 17. list on Schedule B alt liability insurance of the Applicant. List layered policies in: ascending order of attachment, including layers retained by Applicant: 18. As Respects Underlying Insurance (respond below or in additional comments column on Schedule 8): (a) Explain any exclusions to standard General Liability Policy coverage: (b) Indicate deductibles, self-insured retentions, retrospective rating plans or other funding mecha nisms in the amount of $1 million or more per occurrence/accident:__________________________ 19. List on Schedule C a summary of losses by year (insured and uninsured) for the past 10 years by line of coverage, e.g.: (a) Automobile Liability (b) General Liability SEE EXHIBIT # 3 (c) Products and Completed Operations Liability (d) Etc. AEIA-3 7 1 GLD058617 0049-GLD-000058617 20. Indicate any losses included on Schedule C which are caused by or alleged to be caused by pollution: LOSS EXHIBITS DO NOX_INCLUDE^ ANY_P_0LLUTI0W RELATED CLAIMS 21. On Schedule D itemize and give details on all losses shown on Schedule C which exceed $1,000,000. (Paid, outstanding, and allocated expenses), EXHIBIT #4 (a) caused by a single occurrence, and separately. (b) caused by any defect or hazard or alleged delect or hazard associated with insured's product or operations completed or abandoned by the Applicant 22. H any of the losses on Schedules C or D have been handled or reserved amounts established through a service contact rather than by an insurance company for its own account, give details below. (In clude name of individual or organization: if Applicant has self-administered his own losses, furnish infor mation about individual(s) responsible for handling and their qualifications and procedures: if a claim audit has been made in the past year by an independent service, attach report). SF.E PVHTRTT AS___________________________________________________________. 23. is fie Applicant aware of: (a) any event or conditions which might reasonably be expected to give rise to a loss or liability in excess of $1,000,000? Describe: KQMK--KNQIJM___________________________________________ (b) any defect or hazard or alleged defect or hazard associated with the Applicant's products or operations completed or abandoned by the Applicant which might reasonably be expected to give rise to a loss or liability in excess of $1,000,000 in aggregate? Describe: NONE KNOWN 24. Describe any ongoing investigations into the Applicant's products or operations by any governmental body: NOME KNOWN--------------------------------------------------------------------------------------------------- i-- AEIA-3 8 GLD058618 0049-GLD-000058618 25. Additional Comments (optional) AEIA-3 9 <1 GLD0S8619 0049-GLD-000058619 AMERICAN EXCESS INSURANCE ASSOCIATION 2d THE APPLICANT, BASED ON REASONABLE INQUIRY (INCLUDING BUT NOT LIMITED TO REASONABLE INQUIRY OF THE LEGAL AND RISK MANAGEMENT DEPARTMENTS OF THE APPLICANT), WAR RANTS TO THE BEST OF ITS KNOWLEDGE AND BELEF THAT THE STATEMENTS SET FORTH HEREIN ARE TRUE AND THAT NO MATERIAL INFORMATION HAS BEEN WITHHELD. IT IS UNDER STOOD THAT THE COMPANY MAY REQUEST ADDITIONAL INFORMATION WHICH, WHEN SUBMITTED, WILL BECOME PART OF THIS APPLICATION AND SUBJECT TO THE FOREGOING WARRANTY SIGNING OF THIS APPUCATTON DOES NOT BIND THE COMPANY TO OFFER, NOR THE APPLICANT TO ACCEPT INSURANCE, BUT IT IS AGREED THAT THIS APPLICATION SHALL BE THE BASIS OF THE INSURANCE SHOULD A POLICY BE ISSUED. BY SIGNING THIS APPLICATION, THE APPLICANT ACKNOWLEDGES THAT IT HAS RECEIVED THE ATTACHED SPECIMEN POLICY AND AGREES TO BE BOUND BY THE MANDATORY ARBITRATION PROVISION SHOULD A POLICY BE ISSUED. THE APPLICANT FURTHER WARRANTS THAT IF THE INFORMATION SUPPUED ON THIS APPLICATION CHANGES BETWEEN THE DATE OF THIS APPLICATION AND THE INCEPTION DATE OF THE POLICY PERIOD, IT WILL IMMEDIATELY NOTIFY THE COMPANY THE APPLICANT FURTHER ACKNOWLEDGES THAT IT HAS RECEIVED INFORMATION FROM THE COMPANY DESCRIBING THE LIMITED SCOPE OF COVERAGE AND THE POTENTIAL COVERAGE GAPS INHERENT IN THE POLICY FORM. NEW YORK LAW MANDATES THATTHE FOLLOWING WARNING BE GIVEN: "ANY PERSON WHO KNOWINGLY AND WITH INTENT TO DEFRAUD ANY INSURANCE COMPANY OR OTHER PERSON FILES AN APPUCATION FOR INSURANCE CONTAINING ANY FALSE INFOR MATION, OR CONCEALS FOR THE PURPOSE OF MISLEADING, INFORMATION CONCERNING ANY FACT MATERIAL THERETO, COMMITS A FRAUDULENT INSURANCE ACT, WHICH IS A CRIME.*' APPLICANT: HANSON INDUSTRIES (Type) BY (OFFICER OF APPLICANT): DONALD L. SCHOENEWOLF (Signature) TITLE: DIRECTOR OF RISK MANAGEMENT DATE: (TYd ) (IMPORTANT: PRODUCER SIGNATURE REQUIRED ON THE NEXT PAGE) /i* (Type) a AE1A-3-NY 10 io GLD058620 0049-GLD-000058620 Submitted by (a duly authorized insurance producer representing a member of the Association): Name of Firm: FRED. S. JAMES & CO. OF NEW EWGLAMP, IHC. (type) Complete Mailing Address: BROAD STREET-------------------------------------------------------(Type) RndTDMj MAgg&P.HnRBTTfi fmOQ Phone; 617-357-660P Telex: 940227 Fax: 617-357-6755 Name of Authorized Representative: JQSERH--E--... ZAVAfiNTN^VTCE-PREST.nEMT Association Member Represented: Producers domiciled in Delaware, Maryland, New Jersey, New York, Pennsylvania and Canada should return the completed application to: American Excess insurance Association Two World Trade Center Suite 3870 New York, NY 10048 . Phone Number: (212) 466-0097 Telex Number: 62943427 Fax Number: (212) 466-6303 All other producers should return the completed application to: American Excess Insurance Association RiverBend Executive Park 77 Hartland Street, Suite 400 East Hartford, CT 06108 Phone Number: (203) 528-2105 Telex Number: 62943426 Fex Number (203) 282-9393 AEIA-3-NY 11 GLD058621 0049-GLD-000058621 AMERICAN EXCESS INSURANCE ASSOCIATION SCHEDULE A AFFILIATED COMPANIES FORMING A PART OF NAMED INSURED (Response to Item 4 of Application) Name of Affiliated Company Description of Operations and Procedures SEE EXHIBIT #1 AEIA-3 12 GLD058622 0049-GLD-000058622 AMERICAN EXCESS INSURANCE ASSOCIATION SCHEDULE C SUMMARY LOSS INFORMATION AEIA-3 Ms3i 98 % ii ii Is 55 w .<20 i! o g* I*2f o .. SJ s 4) <0 sir Ia 5 *8 s-i Sg I! o 08 O oc IS n s O "cfl} "S d 8 oc O # <UlS&CC- 8191 -sSgS fsssg= O Ul <UJ** Ii cn >rl & *H JXS 0i <u 41 M c .2 Q. a. < .C O 5S o 1* oc Qm. O! n2 or as in |3 GLD058623 0049-GLD-000058623 AMERICAN EXCESS INSURANCE ASSOCIATION SCHEDULE D INDIVIDUAL LOSS INFORMATION AElA-3 -J |Fo3S2-2o ** o 2 ^ Jt<o5goaW--nsa( <ut&oc 5 Vo 3 co I QQ.. 5 CM e co o. CO 8 a: CL O.WJ 03 o*5 <a% 6-i op M w !X W Ed W W M 11 o o 5a CO /M GLD058624 0049-GLD-000058624 4' i | ui D I- sI - (O tf u ui S 3?IS; 2g i LJ " at S 3 S $ o H 1-4 CQ M K X w (A k- S USJ I6 I& sI 4rt t* SI ~ i ' S |2S ft. lit IB s i i a a" s ^^ ^ Bsgs-s !SfOO~-c- _MoigDVur n^SotSU 9i3SSVSBt HLX>) SXmC J2<ikti.i MaSS uM s s 58 Is hi si ss t< 3 $ w 28 ReJK 5s Bs -s *: UJ U s S "* rf8 tIwf 4* gU * ^*u U. bC. a: 5o 0049-GLD-000058625 i) N a. $ S2 S3 & s 3BBISS.o *-s s I s$ 3= 5 85 --S Sa S9 sc B u ^ 5 w 5C 3 iu 2 |. |5 lg WO5 Bin VV) m$OH INDUSTRIES DESCRIPTION 01 OPERATIONS I io S S8 gS ^ GLD058626 0049-GLD-000058626 SINCLAIR INSURANCE CO., LID, ) ( 0049-GLD-000058627 i la 5 Si g s HANSOM INDUSTRIES DESCRIPTION OF OPERATIONS IB 5Q 8Z 2IU2 Is M OR Z 3_J KS 8 o o 3 wu --w ta>a. Ui 111 t Ul s **% SB M Ik 53 M 85 at ui *XU 5UwJ o s= 3U d 0>~ 3u < a8ae. 8usri 3 So tn > ia 5 f 3 B ID 1 ux &M (A S t9iCl ) ) GLD05Q628 0049-GLD-000058628 c. fUNSCN INDUSTSJES DESCRIPTION OF OPERATIONS g 8 s! ss -I*`9 W 5 S2 58? ^ew*t U* UxoHSl 5&m*- wJ^* e !!e 8 fc 8i i 8 So .8 s s " O III Si if 8 s *B g<u/>i *^< * ffi * S IS s Iii tS3/> lNaluuc. X"K u0 *- O GLD058629 0049-GLD-000058629 ce HANSON INDUSTRIES DESCRIPTION OF OPERATIONS S C8 S8 g5 sa *E tf 51 g *3 3 & x * ?s Is l| M :S :$ s 4-- W >K M> SSS!2 k5 Su u5 3a u` x * w vS'l s8 i! 2l |g8 6S1 . M J tA (9 i g3e> s2 s1 /( s (sA s 23` S ft | ss I! GLD058630 0049-GLD-000058630 o 40>> 58 sis ff 2 s s s' u1U ** ii s & 8 K HANSON INDUSTRIES DESCRIPTION OF OPERATIONS * *S 3zg u^wi lyJ w vEi" KSI* **.-* ol ojjj vu>> s sMr S (0 S s: 85 J Dr eg *e* g 8 5 2S 8 e *S *S 5* S"? gS S$ S i! 8 >3 Ii as Mx iu 2 *a SH3 5_. ju U fi 8U `2gg 8658C |- 5- sK S 5n ti tf &s <g 3e M1 I5 S1 Pw o UNl X5 Ui SE 5 tf ; GLD058631 0049-GLD 000058631  ee 8 52 8 ft 3 3* *rv s K JO v 3 >o 5| ill I*1. B! S*| 8 28 s88 . S *1 5 U M2 M Suu3 C O h. 5sC jaB <J SdSifa m i a m < ui tie v 5S 12 g 8 e U> XU < 5 g v 5 sK*S *l < - u t w u II 5U XU w^B HU lis.;2 w ui Kw 83 < 5asi Sf .-558 j o vt B 3 8 to ^ sc- Meuc Mmui *O'O* 8 at 2u a s s EB 48 o5 * s ut ut BBe 0s sMX 0 0 a N } .) GLD058632 0049-GLD-000058632 HANSON INDUSTRIES DESCRIPTION OF OPERATIONS S 8; C* OK B* a >- u III t> f Ss 1*8 8 s! Din * go 5s #1 sg JX IS 2 8. 2 5- 8 i *U sLU |-- i< as !l 11 >8S 3S S< 5CO 45 SS ie 6isIIIs3 *? * s 2 5 III (A 3 I ill sN iu &^1 i<u0 s5 s . 5| x5 GLD058633 0049-GLD-000058633 \ Q MAJOR INSURANCE CO., LTD. ) ) C GLD058634 0049-GLD-000058634 HANSON IM D tfsn tfE S DESCRIPTION OF OPERATIONS S i feOi- iu e<_ir 2 5 *8 ssO 8sN 8 ft K 8 *8 lit V) WIS S9 ss af ^ I 22 ts ss ua SM 82 tt 3 Ik 19 *1 ft S Is M * uI*t ps SI II is 2S 8 0049-GLD-000058635 *45 m sto* 3 V 3S1ft -- 8 23 5 * ft 8S R < ft c* in K e m0 ks> tt UJ 5 ft S2 ua* DC ( t 5 S 2 ft w M I 54 ** U o s B' otc ft a 9*I3 ft 5 ft DC <5 <A *. 2s 11 s ae at ) ; GLD058636 0049-GLD-000058636 ie U w D. Uj DC O- 5M oC> gt * > " " g 8* G" h3i a 3 wv B C tn HANSON INDUSTRIES DESCRIPTION OF OPERATIONS x5 M 3M C9 M I W is : is is?5 (A tfl fit xi Z S8i" ^ae a I 18 ii 3 52 285 .j tw X 5"S issj * G -2 *a8s SS 5 9Sg yS"* s s$ ^s X5i5 S5 S2 u5ac 3xw g ( S i $5 -- Ad y & i 3 *8 35 II ) ) GLD058637 0049-GLD-000058637 5? ft ci ss s gs ill fi 2 LJ 2 SI S8 B s R gfe ft | ft bI *s g& 2i C ? 8 sgs 55<9SX5 0 "1 8 s HUB m i2 sgs wo3 ao6 8 rf* S I I = X s w b8E fXt S0i ft 1. 1| & a *i "l 25 p *? s s P ill ES8Ml =to. i * - 1 3 fuc-i M**l t*oe ft 3 g 3S o ft 82B 2S 5 8S e N^ 5 5 3 to > s s gg a5 * $X *- 0a 83 S ; rir\Ar\ *--*. GLD058638 0049-GLD-000058638  is 2i GoU fr s*8isi R 3 HANSON INDUSTRIES DESCRIPTION OF OPERATIONS s? 4M B K UA ip *BS 2 - k M Ml - $J Hs? s s g * sw sB mx S5 S !Ul mz ui ax i mx . e li* S*s t*.20 ISU SUM uT S S1..Sss Iss* MIX SIS! x s ri?/t SX 3 tItUU- ^<. Kki) :i* 81i 2 tie S3 ss Mu 5 3tt ao SS S- UP UUl mK uUl W X III . !* 1g a8 * i? 3 i P 3i S5 K5m ) GLD058639 0049-GLD-000058639 o S jj ! I* B8 A# B 3| S5 u ** mso &s> HANSON INDUSTRIES DESCRIPTION Of OPERATIONS M 8 5iour 6 (VJ 8 V*to toJ ss:gg[ s n 3 *" 3?SS _ IA * Ik tAoC M *SJ 5S"S i,,-|s -.si* S3% to to- CS -I :,:e * **-1 s ^SZs 5 5=1 s 3 s 8 x c 52 "J hi M ) 0049-GLD-000058640 & c5 s3 jo S' S3 -s _ 1*1 E* R S3 o itnu t<if sc er - S c*5 . Bn** ?s si 5& a^*- af- *aS s2_< W> ^M UK 3< ii s 1 S (A A *r < S* SS5> :i *, Ss5 3s m v> *3 U U3 35 i5 r "*85 S3 3 3 x N N N H BBSS o w -- s* w GLD058641 0049-GLD-000058641 *U 85 3? Uv*Uu- wSO ft.rt O3 V5 eis x x 2> B. - g &KUu"i sa0M_ is s 5 ss AVT UBE 5 & s* *1 s! *2 |E X _J X x 5 W & 55 * J SS2E52 ss^ssg las-1* -- S ~ -i o e8k I `= s |- m^-- H--I ^ *n U M -5 S 21 sS w. '5 B: V> *- gg r I$ ,i wo f*cSW 5S JX 0 S 2 2 S .S 1*3* SB .sc i ssa 1 s*w| U X S St Si>& X 5 u - ta W aJ X S111 W l> B UI B > U U) M X UI -1 -- X X X t5 55 S a B US v> ) GLD058642 0049-GLD-000058642 0? h ms q h im usm es DESCRIPTION OF OPERATIONS vSi K> g mc a__ 2a t 6 <e 8g u St 8 < I v> z IU s e gs K g & a s 8 U 3 g v s * s M U 3 at a Bis g-3 5 `8f ,25 t> S a b SB 5 (9 s 49 U1 i w 8 ss ) GLD058643 0049-GLD-000058643 0 O ag 8 S 8 S AC W 5 & 8* s! 2g 6. *totc Ws 2w Sa S5 si "J wU*l * * --Sfc pP <* g s 8 x ^oucj <A ftu s mu. Ko g B> i * 5 waj 5x tf -0 . O 5 f8t 3 W a a u. q Jiu a. O Ik M ss*8i_ U (A h Ui IU Ul - OuituMttoax 11 lkU6lWkj^--UtolM><MXsIUI*) O at a It* R UJ GLD058644 0049-GLD-000058644 DESCRIPTION OF 8 617 357 6755 SEP 19 '88 16502 FRED.S.JAMES & COMPANY 3^ GLD058645 0049-GLD-000058645 Ksoupnat or o per at io ns 9 617 357 6755 SEP 19 '88 16502 FRED.S.JfiMES & CCMPPMY 3k GLD058646 0049-GLD-000058646 B 617 357 6755 SEP 19 '88 16502 FRED.S. JPMES & COMPANY P.4 HANSON INDUSTRIES O ESCN1PIIO H O F OPERATIONS 37 GLD058647 0049-GLD-000058647 8 61? 357 S755 SEP 19 '88 165 03 FPED.S.JAt'ES * COMPANY * i P.5 32 GLD058648 0049-GLD-000058648 8 61? 357 S7S5 . SEP 19 'S3 16*03 FRED.S.JAMES & COMPfiNY ( I 3 2 8a i\ 1 2\ i ] i i 3ct GLD058649 0049-GLD-000058649 a 617 3S7 67SS SEP 19 '88 16s 03 FRED.S. JAMES & COMPAW P.7 T)aM f68/W S37I5 osnsHt warm* SMtimOTC mm SWH laOJCRU Q'O GLD058650 0049-GLD-000058650 Si? 357 6755 SEP 19 '88 16503 FRED.S.JATCS & COMPANY 19 c. P.8 MCa il i MKSQK UOUSIKUS BESCaiPTIO* OF OPEUTIOMS M-i GLD058651 0049-GLD-000058651 & 61? 357 6755 SEP 19 '96 16*04 FRED.S. JAMES & COMPANY _a P.9 HAIISQN IMMJSlfUES DESCfilFTIOl OF OPERAnOBS <A GLD058652 0049-GLD-000058652 Exhibit i!2 RAKSOtf IKWSmfS HSHSItMt KWMm 0)"5fC"F7 edw aki f9ttu IMER ms p is it im MU PEsmmoir flpriATiPBs as s ev a e a e ih j UE ACS millA: SitvKi Ati MSfJTil SYSTEM, Iff. apmic ed nsmsits AKUUM KH tFC: CO. am sm iff tm . sm m am son -IHK- - sm 5?r am MCRU4X me (Aft mixnvcKs w ar d AR It?rs EDIMAAJJ8I (AtlfOXm msiS MM (ma x ims s ac s 1u. tcituw xm am am xm am S/9B PFF ASSETS S0(P sm off sou me* CJWf4s5 CKC0 KiflE MWKTS e w e * ttrswis mins sAwncmm AIM IJPK am am sou ASSETS $0il> MIST HAWAiIM/Se C0HPANY xm $01D DEEM MDWCI5 CWPMY. pm sanmn muss tmimis mitit&w Mtm WWHSl JUPP am am am am SHIP mo sm off 6W2S niePiiiltS am sm off erne m, nouns mum HOPE SOLO MPSIM flEEIRMICS UPPf h h r u mst am sm m j as aaa?. smis JWU* fllCTMWK j w iir?i>j?Asirs> 14 $ j ims w e s am mints semen, m. HIM MAHAMISJIt (0. SAP WSJ xmt am am am am am sm tff sum on sou Sfl'H Off jci/ipe ie ma t io k a i morns aAutmmc UISMIE TXAfSISTM 1 CICCTWCS xmt itnmi MHtAWit am ASSETS sm miCAL HELP SEIYICE, IVC IIME sm off Penury ia w a c t mij s c o r pam AcPIEASCH HOI/P `um am ASSETS SOTO sm srf unmi fiKMUis wmo immtn tms am ho pe SHOT D0VX miA]M-ADMAiprttH PMFESSIMAi IBISES HAIM sts msmu ij me ho pe imir sm Off sm ore siism t coma urn ASSETS SOLO SltimS HI SMSET EAHP T0IE90 WHJIITTAW CO. ho pe error W5 f sm fir; is h ie s IIME son ncre; KIME view mmm suttees am nuts >a iimi scums c mw a iio i ime sm off riftftr wum WliW S/I/SI msm sums msm soviet IMPJIM TV AEXTAtS 11/11/87 rnrotAir eec pic ae s h v k t surmutm, mimm, s u pu m et c . II/JIPS7 msm s er v ic e HATCHES 2/S/M wum 5/JWi? 3/12/31 mm CTEM/CAt IMIS msm sums DISHES. HAT. CRASf t MOVE ff. s iu i/ij o h smwrdtt, h at er imnun msewts s note fwmunss own ennuis itatmui h ar mar e J/83 All AiriES * HSTOtS LAStS ao j o ans. mnsssn a h tiums 5/1/87 ffOSWAt TV AEHTAIS tifttio? W11107 S/M/S? AtARISS i SECURITY PR0PPC7S ianmr c u u c al semes TFJJPORACY CCEAICAI StAVIfE at s . i oisriis h at . erne eo. 0BAAT7 WSTAt MSES U/IUS7 7UmARY UWCU SUYICf 11/11/87 mmo SERVICE CtOSED CISWI7 TV EMIWfEIT 11/11/57 7EIMIAW UUlCAi SUVtCt "' 2/12/50 not mmss 11/11/87 rriPMAir ctmcAt s er v ic e DTSP1AV t E0SCA7IMAE EQBIPKEIT HUH sm Kcunumt nmas euwm mxswm lAHKIKfi EOBIPIfll itnua imiro SERVICE mm ASCSECTMJAl XAIOMK ntttm jumm c l u j c al ounce sum iOStlUl It AEHTAIS OliTIflP Efll/IPIERT CITSTAE 1 OVEK COIPOHEMTS mum mwAtr msiK stmee TJ/JJ/S7 JMPOIAir C1EIICAE SERVICE mm AHCHECmm lARMAIE II/H/87 AlTfAMEMS, ICXITJM COUS, VOiTAvE REO'S CMmXTOtS mromi tiniui s eiv ic e SflP/TM C0RP4HV tVSHESS MCBIHE5 mum OFfia jumm suncts 5/1/87 mum rv tmns rotr s/as ^^ _ GLD058653 0049-GLD-000058653 ( 9 ( iul -g r2 o GLD058654 0049-GLD-000058654 9 fcfi 88 SS SS fcfc Sfc B Kg 3 g fSffi S Pg Pg 3g Ss S3 Pfc 8 !>. g >S 68 is Sg "> S SB s N\ SS si V\ 5Si is si g& si Si si igigisilRK^i si is si Isss is Msii s is 5 S3 SS is gg sg 22 5 s is ss 52 i g p h ag Q Bi aa aa aR si as aa as aa la 3a ?a aa s| fa. aa aa aa a^ qr ad irt t/!ir5 nIK^ iriifi tmii in. 1 U111I unit < ah ifnfi i/nfi n ifi <i* i*rd fi* iiti . 'n <mn tmf> ilnn id s|p |s'SS SS S3 SS SS SB |s SS Ss| SS SSs| S3 33 SB 3| 3 S3 S3 S i' o ; *8 t*v- - Ijii ^ sISs jUJ .,, rf? Bi nS |?S, (* (Ti *0 xxmiii 6! ! S .H ~ 1 I.&iVn, iint 11 1. Wit *t'V (*t .1 wia i?' Z: *" h '1 1* '* h fefcBifig&E ?! g. is &rSjB 0.0. QoC.oQii --os a uU m'~ " 6LD058655 0049-GLD-000058655 ( i a\ 12 & mOf Of S2 U| U]U| U[Oj tf|U( UJU| OJ 13 l*i 9 0049-GLD-000058656 3 /t ~ /D^pyc^<^^ ' 60<mAa *<? on 6LD058657 0049-GLD-000058657 EXHIBIT 3-B HANSON INDUSTRIES PRCOUCT LOSSES VALUED AS OF 6/30/88 POLICY TEAR CAPTIVE COMPANY 63/64 83/84 83/84 BULLDOG SINCLAIR MAJOR TOTAL # OPEN CUSTANDJNG PAID TOTAL OPEN # CLOSED INCLUDES GENERAL LIABILITY LOSSES 000 0 PAID TOTAL # CLAIMS TOTAL 1NCURRE0 49 2,003,302 346 3,924,197 212 3,662,124 0 607 9,609,623 84/8S 84/8S 84/85 BULLDOG SINCLAIR MAJOR TOTAL 85/86 85/86 85/86 BULLOOG SINCLAIR MAJOR TOTAL INCLUDES GENERAL LIABILITY LOSSES 000 INCLUDES GENERAL LIABILITY LOSSES 000 43 1,129.833 498 1,414.391 272 3,079,210 0 0 813 5,623,484 47 745,522 507 946.711 228 1,884,975 0 0 782 3,577,208 86/87 86/87 86/87 BULLDOG SINCLAIR MAJOR TOTAL 4 5,900 13 68,251 59 894,940 76 969,091 0 1.461 38,250 5,900 69,712 933,190 39,711 1,008,802 37 56: 82 175 16,242 14,586 14,078 44,906 41 22,142 69 84,298 141 947,268 251 1,053,708 87/38 87/88 87/88 BULLDOG SINCLAIR MAJOR TOTAL 15 27, U5 31 20,262 26 188,826 72 236,233 741 998 8,324 10,063 27,886 21,260 197,150 246,296 15 7,167 30 35,053 27 652 58 21,912 11 3,100 37 200,2SO 53 10,919 125 2S7.215 qS GLD058658 0049-GLD-000058658 EXHIBIT 3-C HANSON INDUSTRIES CENERAL LIABILITY LOSSES VALUED AS OF 6/30/88 POLICY YEAR CAPTIVE COMPANY 83/84 83/84 83/84 BULLDOG SINCLAIR MAJOR TOTAL # OPEN OUSTANDING PAID TOTAL OPEH # CLOSED SEE PRODUCT LOSSES PAID TOTAL It CLAIMS TOTAL INCURRED 4/85 84/85 64/65 BULLDOG SINCLAIR MAJOR TOTAL SEE PRODUCT LOSSES 65/66 85/66 65/86 BULLDOG SINCLAIR MAJOR TOTAL SEE PRODUCT LOSSES 86/67 64/67 66/87 BULLDOG SINCLAIR MAJOR TOTAL 6 54,155 845 55,000 151 18,254 157 73,254 404 278,748 20,292 299,040 356 107,134 760 406,174 3 29,273 26,227 55,500 11 11,359 14 66,659 413 362,176 47,364 409,540 518 136,747 931 546,287 87/88 87/88 87/68 BULLDOG SINCLAIR MAJOR TOTAL 3 2,635 136 227,054 1 8,000 142 237,689 G 2,635 1 6 4 2,641 2,051 229,105 185 21,233 523 250,333 0 8,000 3 0 4 8,000 2.051 239,740 189 21,239 331 260,979 4cl GLD058659 0049-GLD-000058659 m EXHIBIT 3-D HANSOM INDUSTRIES AUTOMOBILE LIABILITY LOSSES VALUED AS OF 6/30/88 POLICY TEAR CAPTIVE COMPANY 83/84 83/64 83/64 BULLDOG SINCLAIR MAJOR TOTAL # OPEN OUSTANOING 00 PAID TOTAL OPEN # CLOSED 0 00 PAID TOTAL * CLAIMS TOTAL INCURRED 34 118,472 166 317,301 336 581,792 0 538 1,017,565 84/85 84/85 84/85 BULLDOG SINCLAIR MAJOR TOTAL ( 85/86 8S/86 85/86 BULLDOG SINCLAIR MAJOR TOTAL 46 195,779 159 458,351 399 575,495 0 0 D 0 0 0 604 1,229,628 43 100,304 168 539,442 408 983,159 0 0 0 0 0 0 619 1,622,905 86/87 86/57 86/87 BULLDOG SINCLAIR MAJOR TOTAL 5 36,689 11,932 48,621 38 35,795 43 84,416 5 39,254 9,645 48,899 83 103,574 88 152,473 35 88,078 17,296 105,374 293 216,432 328 321,806 45 164,021 38,873 202,894 414 355,801 459 558,695 87/88 67/86 87/88 0ULLOOG SINCLAIR MAJOR TOTAL 4 1,587 24 501,028 69 126,798 888 11,168 24,395 2,475 512,196 151,193 28 10,562 32 13,037 41 26,025 66 538,221 69 143,849 138 295,042 97 629.413 36,451 665,864 138 180,436 236 846,300 50 GLD05B660 0049-GLD-000058660  \S il s uq m a*ac 2 sr "=3 U. H IA s ft >- 2 2 5 5 3 | S 5 i g 3 J J <4 M (A t- 5 h. - _y_j ku ui 5u |S& <ic -< o go 8o 8o 8o &to ? -- 1oft eIfl S9i mm n <M IV IM v (V ^ 8^ t|Ao OS 'aNlfcA^5IA5v8'AfVc i3OC* S-- Si S. S 2S Oo o o o o o u uooououoooouo g to -- V) o PRODUCT LIABILITY LARGE LOSSES OVER $100,000 M * Mafsl 2 S 211 i gsii u 2O -J z1-11 5(/> ii >-* o Of o 5 u 3KBK 8 <KO* UW UWI u<X u<s u &_ f- *- IoU IoU oUJ I-III f( b. BQ. S_3 IS 8 - u u gujuj^-"i *In * o o o fl * --O l~ as x of --O Utoi --UJ I- to _J UI B < <-- < u. tf 19 O W 3 Z SB I* u tf U 8 < < ! < !a 3 5 m+ * * r i _i uo o oo i 1 g o | At O u O AC O g | 06 O AS ex sc sc ** z>* to <3 13 32 < i 4C i i i x 4< XX X XX USBi *+ mJ 4ok 8 8 88 8 C* GC 06 * c l a. & a. a 8 8 88 883 88 8 Cd tt At ft CL a 8 88 ft Q. tt ft 88 tt o. 88 g 888 AC Cl AC & tf CO s $ 3 t 3 3 3 8 8 3 88 8 8 0 8 S S 3 CJ (O At AC w o <3 s -J -* oo 22 3 KB CA (A 8 88 At a IA in \r\ CD CO 0 s 33 *r GLD058661 0049-GLD-000058661 PRODUCT LIABILITY LARGE LOSSES OVER $100,000 e J I% U CC 88 I.K.A--DO--8NoQoocaooOeoOooONmOooOooOooN>joeBooOhtin>K S P B IQ 8 S' S' S' IS 2 S uouooooooooouoou S-- " _IBl S 12o*0 2 5* d s < E oo3s p<U aaP. oooy Irt UI o -- O <2 2 S ionc -j* yO -is o111 uO a u4i iOu as i oe o. woe iik* O3 e a-- <*. tQ? z< jk ae: goo o ooo oo goo Im* iMfi'<O- u(Mfi*.^O* O OO 03 X2 08 ig _ U 111 u J h m M U) 85< 9E < K (9 A, M X hi^ -I o S Si 5 as as ii uu fi 8 I-- h- ii as as II V) VI i I* _ ^SSu u iu ui h i 8888 S S Sv ousi uasi aws cuei 3 S 3 2S22oSo 33 8ou.se8-a8Q.a8S.Qo8_sC8aL:8aa.s8oa.8os-ec.saa.8c:_8U._c80__6Q_8_.n8.~.. 8" K5 v> w ift w> rt o ...... ................ .. 3333333333333333 Oo UO388 oOe Dag ee oee ao: -r * * < 8K& 8 a. 8tcuf 8t&f a8 B3>. i3Sn iSai\ Ni3/i u3i CO <0 CO CO GLD058662 0049-G LD-000058662 C5* 1 *11 mix I" X IL III 3 >J a iQu ItU- 5 at 2a2 uc e a. uo m IU o " S3 M Ut 358 & o <2 at a3s -< 3< <3 pRooucr LfA siLirr LARGE LOSSES OVER $100,000 3* a uJ i% Si sI i5 Uzt M 3& 88 S5 5? 5? IO CO MOs M 858 222 888 83S sgos *s uot OuS u11-1 s ss 888 GLD058663 0049-GLD-000058663 w- r GENERAL LIABILITY SS JaI-UUo S< S*- SK0 8*M- g 3 5 a. j u. JOOJ C11O1 3* X X o *KzU_l M_M"J 5 Q 2 5 d & ft NS O O fi N > B 5 r S 0% ^ N r in r S' s S O OO O UDU 8 S 5 . * t. * 3 IozU >aa.s;>tz_e*i ,u--jj -uv>jj oa ao a: c o u Jx te te et j ua 8giV>> 9_xu io u_ Ioi-n .3fQf KB3_ > Z 11 III H U III UU WU X S 3Z HS IX* tXU M-J Uo. K tf K a K K M 5 25 3 5 5 5 g 8g g 8 8 g <D W U W ID W C9 O O t9 (9 (9 C3 3N 3N V3V3 S3 N5 S3 3N 8 3 88 8 8 8 8 S .) GLD058664 0049-GLD-000058664 X S~ - Kl - >-- z E= BE BE -s a? 3 " -- w 3 gi S9 ul g 3 AUTOMOBILE LIABILITY URGE LOSSES OVER $100,000 Ul ~ --2> *. 3a 5a u aa s. >. as s GLD058665 0049-GLD-000058665 u-> 6- HCQ sr X w sit 5** z k--= vuS. 5 - c$ 15 P <s 1" K V) 8 r* < *S 25 f > 52 3 w> *w -- Ego S 8 _ GLD058666 0049-GLD-000058666