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-S' MrM-* \ zb a lw M \> l'G e) GLD056597 0049-GLD-000056597 I sM0> S C 2SS si? > 00 8 z G <-43 GLD056596 0049-GLD-000056596 m`^*vrn*s-*ea r |T) lull l il< l| | ~ I -| ^|I I(,1 ' X ^^c^ravrar.a....... o%.a^i fH tog H vDCfi 03 slOH F o ftt GLD056598 0049-GLD-000056598 Mary Russell Vice President Marsh & McLennan, Incorporated 44 Whippany Road P.O. Box 1966 Morristown, NJ 07962*1966 Telephone 201 285 8427 IHe&x 201 292 8730 June 14,1995 Mr. Donald L. Schoenewolf Director ofRisk Management Hanson Industries 99 Wood Avenue Iselin, NJ 08830 Ma r s h & MCLENNAN RE: Gerling Lead Umbrella Liability Policy No.: 62/9741 ID - Memorandum 14 Effective: October 1,1994 Dear Don: Please find enclosed the Gerling Renewal Memorandum No. 14 which extends the policy for an annual period incepting October 1, 1994 and amends the limit ofliability to $5 million excess of primaries. We have reviewed the Memorandum to ensure its accuracy and have found it to be in order with the exception ofthe following items: Revise the sale ofBeazer Homes to reflect the actual date ofMarch 4,1994. Attachment 1 - Schedule ofUnderlying Insurances should be revised as follows: (III) Foreign Liability CGL and Employers' Liability effective dates should be revised from 1/8/94 - 1/8/95 to 1/10/94- 1/10/95. (V) Tidewater Construction Corp. OCP Policy No. should read LX1-651-004723-554 (VI) Riverside Cement Co. All underlying insurances should be deleted from schedule. (VEt) Gifford-HiU American, Inc. There should be a comma between "American and Inc." These revisions have been addressed with the underwriter and upon receipt ofthe amendments they will be forwarded to you for attachment to the original policy. Should you have any questions regarding the renewal endorsement please do not hesitate to contact us. MR0628/sc/CAS/1 Enclosure cc: T. Kelleher W. DeLaney GLD056599 0049-GLD-000056599 . GERLING-KONZERN GENERAL INSURANCE COMPANY UK BRANCH Manager: Gerling Insurance Service Company Ltd 50 Fenchurch Street London EC3M3JY Tel: 071 696 8099 Fax: 071696 8119/8120 Telex: 883438 GLOBAL UMBRELLA LIABILITY INSURANCE In consideration of the Insured having paid or agreed to pay the premium the Gerling Konzem General Insurance Company - UK Branch (the Company) will provide the insurance detailed in this Policy subject to the terms exceptions limits and conditions The Proposal or ahy information supplied by the Insured in connection with this insurance shall be incorporated in the contract Gerling Konzem General Insurance Company - UK Branch Important Notice to the Insured Please read this policy carefully to ensure that it is in accordance with your requirements and that you understand its terms and conditions. The Company should be contacted immediately if any correction is necessary 62/97411/D Page 1 of 27 Hanson Pic GLD056600 0049-GLD-000056600 Policy Number: Insured: Address: Business: Polity Territory: Period of Insurance: Limit of Indemnity: Aggregate Limit of Indemnity: POLICY SCHEDULE 62/97411/D Hanson Pic and all Subsidiaiy and/or Associated Companies 1 Grosvenor Place London SW1X7JH All activities which the Insured is legally empowered to undertake this Policy applies to Personal Injuiy Property. Damage or Advertising Liability occurring anywhere in the world (a) From 1st October 1991 to 30th September 1992 both days inclusive (b) Any subsequent period with effect from 1st October 1992 for which the Insured and the Company shall have agreed to renew this policy (a) US$10,000,000 any one Occurrence (b) US$10,000,000 in any one Period of Insurance in respect of liability arising from the Products Hazard and the Completed Operations Hazard US$10,000,000 in any one Period of Insurance Deductible: US$25,000 any one Occurrence First Premium: US$885,000 in full 62/97411/D Page 2 of 27 Hanson Pic GLD056601 0049-GLD-000056601 r INSURING AGREEMENTS c I COVERAGE To indemnify the Insured for that portion of the Ultimate Net Loss.in excess of the retained limit as hereinafter defined which the Insured shall become legally obligated to pay as damages for liability imposed on the Insured by law or liability assumed by the Insured under contract because of (i) Personal Injury or (ii) Property Damage or (iii) Advertising liability as defined herein caused by an Occurrence during the currency of this Policy within the Policy Territory in connection with the Business II DEFENSE SETTLEMENT SUPPLEMENTARY PAYMENTS (The provisions of this Insuring Agreement apply solely to Occurrences covered under this policy but not covered by any underlying policies listed in the Schedule of Underlying Insurance or any other underlying insurance providing coverage to the Insured This Insuring Agreement shall also apply to Occurrences not covered by any underlying insurance due to exhaustion of any aggregate limits by reason of any losses paid thereunder) The Company shall (a) defend any suit against the Insured alleging liability insured under the provisions of this policy and seeking recovery for damages on account thereof even if such suit is groundless false or fraudulent but the Company shall have the right to make such investigation and and negotiation and settlement of any claim or suit as may be deemed expedient by the Company (b) pay all premiums on bonds to release attachments for an amount not in excess of the applicable Limit of Indemnity of this policy all premiums on appeal bonds required in any such defended suit but without any obligation to apply for or furnish such bonds all costs taxed against the Insured in any such suit all expenses incurred by the Company and all interest accruing after entry of judgment until the Company has paid tendered or deposited in court that part of the judgment as does not exceed the Limit of Indemnity thereon (c) reimburse the Insured for all reasonable expenses incurred at the Companys request (including actual loss of wages or salary but not loss of other income not to exceed $75 per day) because of the Insureds attendance at hearings or trials at such request 62/57-m/D Page 3 of 27 Hanson Pic GLD056602 0049-GLD-000056602 The Company agrees to pay the amounts incurred under this Insuring Agreement II except in settlement of claims and suits in addition to the Limit of Indemnity stated in the Policy Schedule and such Defense and Supplementary Payments shall not be included as part of the Ultimate Net Loss as defined in the policy The Insured shall promptly reimburse the Company (excepting Defense Costs) for any amount of Ultimate Net Loss paid on behalf of the Insured within the Deductible specified in the Policy Schedule Insuring Agreement I and II shall cease to apply after the applicable Limit of Indemnity has been exhausted by payment ofjudgments or settlements 62/97411/D Page 4 of 27 Hanson Pic GLD056603 0049-GLD-000056603 LIMIT OF INDEMNITY - RETAINED LIMIT (A) The Company shall be liable only for that portion of the Ultimate Net Loss excess of the Insureds Retained limit defined as either; (1) the total of the applicable limits of the underlying policies listed in the Schedule of Underlying Insurance hereof and the applicable limits of any other underlying insurance providing coverage to the Insured or (2) the Deductible stated in the Policy Schedule as a result of any one Occurrence not covered by such underlying policies or insurance and then up to an amount not exceeding the Limit of Indemnity stated in the Policy Schedule as the result of any one Occurrence (B) In the event of reduction or exhaustion of the aggregate Limit of Indemnity under said underlying insurance by reason of losses paid thereunder during this Period of Insurance this policy shall subject to its terms and conditions and the Limit of Indemnity stated in the Policy Schedule (1) in the event of reductions pay excess of the reduced underlying Insurance or (2) in the event of exhaustion of the limits of indemnity continue in force as underlying insurance (C) There is no limit to the number of Occurrences during the Period of Insurance for which claims may be made except that the Companys total limit of Indemnity arising out of the Products Hazard or the Completed Operations Hazard or both combined shall not exceed the limit of Indemnity stated in the Policy Schedule as respect all Occurrences during each Period of Insurance commencing with the effective or anniversary date of this policy In those cases where the underlying insurance listed in the Schedule of Underlying Insurance Policies contains coverage(s) which are subject to an Aggregate limit of liability for all insured damages the Company's liability shall likewise be limited to the Aggregate Limit of Indemnity stated in the Policy Schedule with respect to all Occurrences during each Period of Insurance while this period is in force commencing from its effective date The Aggregate Limit of Indemnity stated in the Policy Schedule shall apply separately to each underlying insurance coverage which carries an aggregate limit in the policy of underlying insurance (D) For the purpose of determining the Limit of Indemnity all Personal Injury and Property Damage arising out of continuous or repeated exposure to substantially the same general conditions shall be considered as arising out of one Occurrence With respect to Advertising Liability all damages involving the same injurious material or act regardless of the frequency or repetition thereof the number and kind of media used and the number of claimants shall be deemed to arise out of one Occurrence 62/97411/D Page 5 of 27 Hanson Pic GLD056604 0049-GLD-000056604 f EXCLUSIONS c This Policy shall not apply (A) to any obligation for which the Insured or any carrier as his insurer riiay be held liable under any Workers Compensation Unemployment Compensation or Disability Benefits Law or under any similar law (B) to any obligation which the Insured may be liable under no fault benefits or uninsured motorists law (C) to the loss of use of tangible property which has not been physically injured or destroyed resulting from (i) a delay in or lack of performance by or on behalf of the Insured of any contract or agreement or (ii) the failure of the Insureds Products or work performed by or on behalf of die Insured to meet the level of performance quality fitness or durability warranted or represented by the Insured but this exclusion does not apply to loss of use of other tangible property resulting from the sudden and accidental physical injury to or destruction of the Insureds Products or work performed by or on behalf of the Insured after such products or work have been put to use by any person or organization other than an Insured (D) To Property Damage to (i) the Insured Products arising out of such products or any part of such products (ii) work performed by or on behalf of the Insured arising out of the work or any portion thereof or out of material parts or equipment furnished in connection therewith (iii) property belonging to the Insured or held in trust by or borrowed rented leased or hired for use by the Insured but this exclusion shall not apply to (a) the personal effects (including vehicles and their contents) of directors employees and visitors (b) buildings or their contents temporarily occupied by the Insured for the purpose of carrying out work therein or thereon (c) premises (or fixtures and fittings therein) hired rented leased or lent to the Insured providing always that no indemnity shall be provided in respect of such loss or damage if the liability is assumed by the Insured under a tenant or other agreement and would not have attached in the absence of such agreement (iv) aircraft or watercraft rented to used by or in the care custody or control of the Insured 62/97411/D Page 6 of 27 Hanson Pic GLD056605 0049-GLD-000056605 p'WoJpStSttPioSiP: Vt c (E) to damages claimed for the withdrawal inspection repair replacement or loss of use of the Insureds Products or work completed by or for the Insured or of any property of which such products or work form a part if such products work or property are withdrawn from the market or from use by anyone because of any known or subjected defect or deficiency therein (F) to Personal Injury or Property Damage arising out of the ownership maintenance operation use loading or unloading of <l) any watercraft (ii) any aircraft owned by the Insured or rented to the Insured (G) (a) under Coverages l(i) and l(ii) to Personal Injury or Property Damage (i) with respect to which an Insured under the policy is also an Insured under a nuclear energy liability policy issued by Nuclear Energy Liability-Property Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an Insured under any such policy but for its termination upon exhaustion of its limit of liability or (ii) resulting from the hazardous properties of nuclear material and with respect to which (1) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954 or any law amendatory thereof or (2) 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 (b) under any Medical Payments Coverage or under any Supplementary Payments provirion relating to immediate medical or surgical relief for expenses incurred with respect to bodily injury sickness disease or death resulting from hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization (c) under any liability Coverage to Personal Injury or Property Damage resulting from the hazardous properties of nuclear material if (i) the nuclear material (1) is at any nuclear facility owned by or operated by or on behalf of an insured or (2) has been discharged or dispensed therefrom (ii) the nuclear material in contained in spent fuel or waste at any time possessed handled used processed stored transported or disposed of by or on behalf of an Insured or 62/97411/D Page 7 of 27 Hanson Pic 6LD056606 0049-GLD-000056606 c (ill) the Personal Injury or Property Damages arises out of the furnishing by an Insured of services materials parts or equipment in connection with the planning construction maintenance operating or use of any nuclear facility but if such facility is located within the United States of America its territories or possessions of Canada this exclusion (iii) applies only to injury to or destruction of property at such nuclear facility (d) as used in this policy "hazardous properties" include radioactive toxic or explosive properties "nudear material" means source material special nuclear material or by-product material "source material" "spedal nudear material" and ."by-product &$:* material" have meanings given them in the Atomic Energy Act of 1954 or in any law amendatoiy 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 by-product material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition * of nuclear facility under paragraph (i) or (ii) thereof "Nuclear Facility" means (I) any nuclear reactor (ii) any equipment or device designed or used for (1) separating the isotopes or uranium or plutonium (2) processing or utilizing spent fuel or (3) handling processing or packaging wastes (iii) any equipment or device used for the processing fabricating or alloying of the 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 (iv) any structure basin excavation premises or place prepared or used far storage or disposal of waste and includes the site on which any of the foregoing is located all operations conducted on such site and all premises used for such operations 62/97411/D Page 8 of 27 Hanson Pin GLD056607 0049-GLD-000056607 *$!$! ;$$?}$ c/' ' "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 or radioactive contamination of property (H) to any consequence whether direct or indirect of war invasion act of foreign enemy hostilities (whether war be declared or not) civil war rebellion revolution insurrection or military or usurped power (I) under Advertising Liability to claims made against the Insured (1) for failure of performance of contract (ii) for infringement of trade-mark or trade name (iii) for incorrect description of any article or commodity (iv) for mistake in advertised prices (J) legal liability arising from advice design or specification provided for a fee by the Insured and not connected with the supply or intended supply of the Insureds Products but this Exception does not apply to the rendering of or the failure to render professional medical advice treatment or service at or in the vicinity of the Insured's premises by Medical Persons employed by the Insured but only in circumstances where emergency medical treatment is required following an accident sudden illness or the like (K) (i) (1) to Personal Injury or Property Damage directly or indirectly caused by seepage pollution or contamination (2) to the cost of removing nullifying or cleaning up seeping polluting or contaminating substances (3) fines penalties punitive or exemplary damages arising therefrom in respect of any claim judgement award or settlement made in any country or territory which operates under the laws of the United States of America or Canada or any order made anywhere in the world to enforce such judgement award or settlement whether in whole or in part (ii) (1) to Personal Injury or Property Damage directly or indirectly caused by seepage pollution or contamination provided always that this paragraph (ii) shall not apply to Personal Injury or Property Damage where such seepage pollution or contamination is caused by a sudden unintended and unexpected happening during the Period of Insurance (2) the cost of removing nullifying or cleaning up seeping polluting or contaminating substances unless the seepage pollution or contamination is caused by a sudden unintended and unexpected happening during the Period of Insurance (3) fines penalties punitive or exemplary damages arising therefrom 62/97411/D Page 9 of 27 Hanson Ptc GLD056608 0049-GLD-000056608 ii. (r This paragraph (ii) shall not extend the Policy to cover Personal Injury or Property Damage which would not have been covered under this Policy had this paragraph (ii) not been attached and shall not apply where paragraph (i) is applicable (L) The publication or utterance of a libel or slander (a) made prior to the effective date of this insurance or (b) made at the direction of the Insured with knowledge of the falsity thereof (M) Personal Injury sustained by any Employee arising out of and in the course of employment of that Employee by the Insured except in respect of (!) any amount in excess of any limits applicable under any policy effected in that country to comply with legal requirements (ii) subrogation rights exercised against the Insured by any State Social Security or similar scheme <N) Personal Injury or Property Damage arising out of Aircraft Products and Completed Operations or reliance upon any representation or warranty made with respect thereto nor to any liability arising out of the Grounding of any (O) indemnity to a vendor under definition (A)(h) in respect of liability arising from (I) any physical or chemical change in the form of the product made intentionally by the vendor (ii) repacking unless unpacked solely for the purpose of inspection demonstration testing or substitution of parts under instruction from the manufacturer and then repacked in the original container (iff) products which after distribution or sale by the Insured have been labelled or relabelled or used as a container pan or ingredient of any other thing or substance by or for the vendor (iv) the fault or negligence of such vendor (v) demonstration installation servicing of repair operations except such operations performed at the vendors premises in connection with the sale of the Insureds Product (P) to Personal Injuxy claims arising out of the following (i) a past present or prospective Employee of the Insured arising from any employment action practice or policy of the Insured including but not limited to that of hiring or firing promotion or demotion performance evaluation compensation disciplinaiy action retirement layoff or transfer or (ii) any relative or member of the family of that past present or prospective employee as a consequence of (i) above 62/97411/D Page 30 of 27 Hanson Pic GLD056609 *ryy<*<- c. c (Q) to Property Damage Personal Injury occupational disease at any time arising out of the manufacture of mining of use of sales of installation of removal of distribution of or exposure to asbestos asbestos products asbestos fibers or asbestos dust or to any obligation of the Insured to indemnify any party because of damage arising out of such Property Damage Personal Injury or occupational disease at any time as a result of the manufacture of mining of use* of sales of installation of removal of distribution of or exposure to asbestos asbestos products asbestos fibers or asbestos dust in respect of any claim judgement award or settlement made in any country or territory which operates under the laws of the United States of America or Canada or any order made anywhere in the world to enforce such judgement award or settlement whether in whole or in part It is further understood and agreed that the Company is not obligated to defend any suit or claim against the Insured alleging Property Damage Personal Injury or occupational disease and seeking damages if such suit or claim arises from Property Damage Personal Injury or occupational disease resulting from or contributed to by any and all manufacture of mining of use of sales of installation of removal of distribution of or exposure to asbestos asbestos products asbestos fibers or asbestos dust (R) to any obligations incurred or imposed upon the Insured under the Employee Retirement Income Security Act of 1974 Public Law 93-406 and any law amendatory thereof (S) to Personal Injury or occupational disease including but not limited to death addiction or the contraction aggravation or exacerbation of any disease sickness injury or disorder of the body alleged to have been caused by tobacco or tobacco products nicotine or nicotine products manufactured processed sold or supplied by the Insured 62/97411/D Page 11 of 27 1 lanson Pic 6LD056610 0049-GLD-000056610 c DEFINITIONS r When used in this policy (including endorsements forming a part hereof) (A) Persons Insured means each of the following to the extent set forth b.elow (a) (2) the Insured stated in the Policy Schedule (2) any additional companies that become subsidiaries or owned or controlled companies of said Insured providing notice is given to the Company within sixty (60) days thereof (b) Any partnership or joint venture only to the extent of the Insured's interest in such partnership or joint venture (c) any person organization trustee or estate to whom or to which the Insured is obligated by virtue of a written contract to provide insurance such as is afforded by this policy but only with respect to operations by or on behalf of the Insured or to the facilities of or used by the Insured (d) subject m the terms and conditions of this policy any additional Insured included in the underlying insurance but only to the extent that insurance is available to such additional Insured under such underlying insurance (e) except with respect to ownership maintenance or use including loading or unloading of any automobiles or aircraft any partner executive officer director stockholder or Employee of the Insured while acting in his capacity as such and any organization or proprietor with respect to real estate management for the Insured (f) any person while using any automobile owned by the Insured or any automobile loaned to the Insured or hired for use on behalf of the Insured and any person legally responsible for the use thereof provided the actual use thereof is with the permission of the Insured and any executive officer director or stockholder of the Insured with respect to the use of an automobile not owned by the Insured in the business of the Insured The insurance with respect to any person or organization other than the Insured does not apply under this clause (1) to any person or organization to any agent or employee thereof operating an automobile sales agency repair shop service station storage garage or public parking place with respect to an Occurrence arising out of the operation thereof (2) with respect to any automobile hired by or loaned to the Insured to the owner or lessee thereof other than the Insured or to any agent or employee of such owner or lessee The inclusion or addition hereunder of more than one Insured shall not operate to increase the Company's limit of Indemnity 62/9741 i/D Page 12 of 27 Hanson Pie GLD056611 0049-GLD-000056611 c (g) at the request of the Insured named in the Policy Schedule directors or Employees of the Insured and any member of their family or persons normally resident with them whilst travelling outside their usual country of residence in connection with the Business or any related holiday period (h) Any vendor of the Insureds Products where the Insured has agreed to indemnify the vendor in respect of liability for Personal Injury of Property Damage arising from the Insureds Products provided that such a vendor shall observe fulfill and be subject to the terms exceptions limits and conditions of this policy so far as they can apply (i) In the event of the death of the Insured any personal representative of the Insured in respect of liability incurred by the Insured (j) The Insureds canteen social sports and welfare organisations and first aid fire and ambulance services including any officer member committee member and voluntary helper both jointly and severally in their respective capacities as such (B) Employees shall mean any person under a contract of service or apprenticeship with the Insured which shall include (a) any Labour Master or Labour only Sub-Contractor or persons supplied by any of them (b) self-employed persons (c) any person hired or borrowed by the Insured from another employer (d) persons under work experience study and/or training schemes working for the Insured in connection with the Business (C) Business shall include (a) the provision of catering social sports and welfare facilities for Employees and/or ex Employees and/or their families and/or guests (b) the provision of fire first aid medical ambulance and security services (c) the provision of car parks (d) private work carried out with the consent of the Insured by an Employee for a director or partner or Employee of the Insured (e) the ownership occupation and maintenance of premises (f) participation in exhibitions (D) Personal Iiy'uiy shall mean (a) bodily injury sickness disease including death anytime resulting therefrom shock fright mental anguish and mental injury (b) false arrest false imprisonment wrongful eviction wrongful detention malicious prosecution and humiliation 62/97411/D Page 13 of 27 Hanson Pic GLD056612 0049-GLD-000056612 |&wj$ '0}>tj$ c (c) libel slander defamation of character or invasion of right of privacy unless arising out of Advertising Liability (d) assault and battery not committed by or at the direction of the Insured unless committed for the purpose of preventing or eliminating danger to persons or property which occurs during the Period of Insurance (E) Property Damage shall mean (1) physical injury to or destruction of tangible property which occurs during the Period of Insurance including loss of use thereof at any time resulting therefrom or (2) loss of use of tangible property which has not been physically injured or destroyed provided such loss of use is caused by an Occurrence during the Period of Insurance (F) Advertising Liability shall mean liability for damage because of (a) unintentional libel slander or defamation of character (b) infringement of copyright or title or of slogan (c) piracy or unfair competition or idea misappropriation under an implied contract (d) invasion of the rights of privacy committed or alleged to have been committed during the Period of Insurance in any advertisement publicity article broadcast or telecast and arising out of the Insureds advertising activities (G) Products Hazard includes Personal Injury and Property Damage arising out of the Insureds Products or reliance upon a representation or warranty with respect thereto but only if the Personal Injury or Property Damage occurs away from premises owned by or rented to the Insured and after physical possession has been relinquished to others (H) Insureds Products means services goods or products manufactured repaired serviced altered constructed erected treated installed processed stored disposed handled sold supplied hired out transferred or distributed by the Insured or by others trading under the Insureds name including any container packaging labels instructions for use or reliance on a representation or warranty with respect thereto (I) Completed Operations Hazard includes Personal Injury and Property Damage arising out of operations or reliance upon a representation or warranty made at ary time with respect thereto but only if the Personal Injury or Property Damage occurs after such operations have been completed or abandoned and occurs away from premises owned by or rented to the Insured Operations include materials parts or equipment furnished in connection therewith 62/97411/D Page 14 of 27 Hanson Pic GLD056613 0049-GLD-000056613 c Operations shall be deemed completed at the earliest of the following times (a) when all operations to be performed by or on behalf of the Insured under the contract have been completed (b) when all operations to be performed by or on behalf of the Insured at the site of the operations have been completed (c) when the portion of the work out of which the Personal Injury or Property Damage arises has been put to its intended use by any person or organization other than another contractor or sub-contractor engaged in performing operations for a principal as part of the same project Operations which may require further service or maintenance work or correction repair or replacement because of any defect or deficiency but which are otherwise complete shall be deemed completed The Completed Operations Hazard does not include Personal Injury, or Property Damage arising out of (1) operations in connection with the transportation of property unless the Personal Injury or Property Damage arises out of a condition in or on a vehicle created by the loading or unloading thereof (2) the existence of tools uninstalled equipment or abandoned or unused materials (J) Occurrence with respect to Personal Injury and Property Damage the term Occurrence means an event including continuous or repeated exposure to conditions which result in Personal Injury or Property Damage during the Period of Insurance neither expected not intended from the standpoint of the Insured All Personal Injury or Property Damage arising out of the continuous or repeated exposure to substantially the same general conditions shall be considered as arising out of one Occurrence (K) Ultimate Net Loss except as provided in Insuring Agreement H Defense the terms Ultimate Net Loss shall mean the total sum which the Insured or any company as its insurer or both become obligated to pay by reason of Personal Injury Property Damage or Advertising liability claims either through adjudication or compromise and shall also include hospital medical and funeral charges and all sums paid or payable as salaries wages compensation fees charges interest expenses for doctors nurses and investigators and other persons and for settlement adjustment investigation and defense of claims and excluding only the salaries of the Insured or any of the underlying Insurers permanent employees The liability of the Company for costs and expenses as aforesaid shall be limited to that proportion which the amount payable under this policy excluding such costs and expenses bears to the total sum payable under all contributing policies excluding such costs and expenses 62/97411/D Page IS of 27 Hanson Pic GLD056614 0049-GLD-000056614 }$?{** S&Sis' cc (L) Medical persons means medical doctors medical nurses and dentists (M) Aircraft Products and Completed Operations means (1) aircraft (including missiles or space craft and ground support or control equipment used therewith) and any other goods or products manufactured sold handled or distributed by the Insured or any services provided or recommended by the Insured or by others trading under his name for use in the manufacture repair operation maintenance or use of any aircraft and (2) any articles furnished by the Insured and installed in aircraft or used in connection with aircraft or for spare parts for aircraft including ground handling tools and equipment and also means training aids instructions manuals blueprints engineering or other data engineering or other advice and labor relating to such aircraft or articles Grounding shall mean the withdrawal of one or more aircraft for the flight operations or the imposition of speed passenger or load restrictions on such aircraft by reason of the existence of or alleged or suspected existence of any defect fault or condition in such aircraft or any part thereof sold handled or distributed by the insured or manufactured assembled or processed by any other person or organization according to specifications plans suggestions orders or drawings of the Insured or with tools machinery or other equipment furnished to such persons or organizations by the Insured whether such aircraft so withdrawn are owned or operated by the same or different persons organisations or corporations A Grounding shall be deemed to commence on the date of an accident or Occurrence which discloses such condition or on the date an aircraft is first withdrawn from service on account of such condition whichever occurs first 62/97411/D Page 16 of 27 Hanson Pic GLD056615 0049-GLD-000056615 (' CONDITIONS c $$>&?! This Policy and Schedule (including any Schedule issued in substitution) and any Memoranda shall be considered one document and any word or expression to which a specific meaning has been attached shall bear such meaning wherever it appears 1 Premium If any part of the premium is calculated on estimates furnished by the Insured the Insured shall keep an accurate record containing all particulars relative thereto and shall at all times allow the Company to inspect such record The Insured shall within one month from the expiry of each Period of Insurance furnish to the Company such particulars and information as the Company may require The premium for such period shall thereupon be adjusted and the difference paid by or allowed to the Insured as the case may be 2 Prior Insurance and Non-Cumulation of Liability It is agreed that if any loss is also covered in whole or in part under any other excess policy issued to the insured prior to the inception date hereof the Companys limit of Indemnity as stated in the Policy Schedule shall be reduced by any amounts due to the Insured on account of any such loss under such prior insurance 3 Severability of Interest In the event of claims being made by reason of Personal Injury Property Damage or Advertising liability suffered by one Insured herein for which another Insured herein is or may be liable this policy shall cover such Insured against whom a claim is made or may be made in the same manner as if separate policies had been issued to each Insured herein Nothing contained herein shall operate to increase the Companys Limit of Indemnity as set forth in the Policy Schedule 4 Notice of Occurrence Whenever the Insured has information from which the Insured may reasonably conclude that an Occurrence covered hereunder involved injuries or damages which in the event that the Insured should be held liable is likely to involve this policy notice shall be sent to the Company or to any authorized agent of the Company as soon as is reasonably possible Notice to any authorized agent shall be deemed notice to the Company 5 Inspection and Audit The Company shall be permitted but not obligated to inspect the Insureds property and operations at any time Neither the Companys right to make inspections nor the making thereof nor any report thereon shall constitute an undertaking on behalf of or for the benefit of the Insured or others to determine or warrant that such property or operations are safe The Company may examine and audit the Insureds books and records at any time during the policy and extensions thereof and within three (3) years after the final termination of this policy as far as they relate to the subject matter of this insurance 62/97411/D Page 17 of 27 Hanson Pic GLD056616 0049-GLD-000056616 cc 6 Maintenance of Underlying Insurance The policy or policies referred to in the attached Schedule of Underlying Insurances and any renewal or replacement thereof not more restrictive shall be maintained by the Insured in full effect Airing the currency of this policy without alteration of terms or conditions except for any reduction of the aggregate limit or limits contained therein solely by payment of claims Failure of the Insured to comply with the foregoing shall not invalidate this policy but in the event of such failure the Company shall only be liable to the same extent as it would have been had the Insured so maintained such policy or policies 7 Assistance and Cooperation Except as provided by the Insuring Agreement II Defense the Company shall not be called upon to assume charge of the settlement or defense of any claim made or suit brought or proceedings instituted against the Insured but the Company shall have the right and shall be given the opportunity to associate with the Insured or the Insureds underlying insurer or both in the defense and control of any claim suit or proceeding relative to any Occurrence where the claim or suit involves or appear reasonably likely to involve the Company in which event the Insured the underlying insurers and the Company shall cooperate in all things in the defense of such claim suit or proceeding $ Appeals In the event the Insured or the Insureds underlying insurers) elects not to appeal a judgment in excess of the underlying limits the Company may elect to make such appeal at its own cost and expense and shall be liable for the taxable costs and disbursements and interest incidental thereto but in no event shall the liability of the Company for the Ultimate Net Loss exceed the sum set forth in the Limit of Indemnity in the Policy Schedule for any one Occurrence plus the cost and expense of such appeal 9 Other Insurance If other valid and collectible insurance with any other insurer is available to the Insured covering a loss also covered hereunder this insurance shall be excess of and shall not contribute with such other insurance Excess insurance over the limits of Liability expressed in this polity is permitted without prejudice to this insurance and the existence of such insurance shall not reduce any liability under this polity 10 Application of Salvages - Subrogation All salvages recoveries or payments recovered or received subsequent to a loss settlement under this insurance shall be applied as if recovered or received prior to such settlement and all necessary adjustments shall then be made between the Insured and the Company provided always that nothing in this clause shall be construed or mean that losses under this insurance are not recoverable until the Insureds Ultimate Net Loss has been finally ascertained 62/974 n/n Page 18 of 27 Hanson Pic GLD056617 0049-GLD-000056617 cr In as much as this policy is Excess Coverage the Insureds right of recovery against any person or other entity cannot always be exclusively subrogated to the Company It is therefore understood and agreed that in case of any payment hereunder the Company shall act in concert with all other interests (including the Insured) concerned in the exercise of such rights of recovery The apportioning of any amounts which may be so recovered shall follow the principle that any interests (including the Insured) 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 shall then be reimbursed out of any balance then remaining up to the amount paid hereunder lastly the interests (including the Insured) of whom this coverage is excess are entitled to claim the residue if any Expense necessary to the recovery of any such amounts shall be apportioned between the interests (including the Insured) concerned in the ratio of their respective recoveries as finally settled 11 Changes Notice to or knowledge possessed by any person shall not affect a waiver or change in any part of this policy or stop the Company from asserting any rights under the terms of this policy nor shall the terms of this polity be waived or changed except by endorsement issued to form a part hereof signed by an authorized representative of the Company 12 Assignment Assignment of interest under this policy shall not bind the Company until its consent is endorsed hereon if however the Insured shall be adjudged bankrupt or insolvent this policy shall cover the Insureds legal representative as an Insured provided that notice of cancellation addressed to the Insured named in the Policy Schedule and mailed to the address shown in this policy shall be sufficient notice to effect cancellation of this policy 13 Cancellation This policy may be cancelled by the Insured by surrender thereof to the Company or any of its authorized agents or by mailing to the Company or any of its authorised agents written notice stating when thereafter such cancellation shall be effective The policy may be cancelled by the Company by mailing to the Insured at the address shown in the Policy Schedule written notice stating when not less than sixty (60) days thereafter ten (10) days with respect to cancellation for non-payment of premium such cancellation shall be effective Proof of mailing of notice as aforesaid shall be sufficient proof of notice The time of surrender or the effective date and hour of cancellation stated in the notice shall become the end of the Period of Insurance Delivery of such written notice either by the Insured or by the Company shall be equivalent to mailing If the fissured cancels earned premium shall be computed in accordance with the customary short rate table procedure If the Company cancels earned premium shall be computed pro rata In the event of such cancellation the earned premium shall in no case be less than the annual premium stated in the Policy Schedule subject to the policy minimum premium also stated in the Policy Schedule 62/97411/D Page 19 of 27 Hanson PEc GLD056618 0049-GLD-000056618 $?!};&$ $!?!><! iiiiiji? cc Premium adjustment may be made at the time cancellation is effected or as soon as practicable thereafter The check of the Company or its representative mailed or delivered shall be sufficient tender of any refund due the Insured If this policy insures more than one Insured cancellation may be effected by the first of such Insureds for the account of all Insureds the notice of cancellation by the Company to such first Insured shall be notice to all Insureds Payment of any unearned premium to such first Insured shall be for the account of all interests in such payment 14 Bankruptcy and Insolvency In the event of the bankruptcy or insolvency of the Insured or ary entity comprising the Insured the Company shall not be relieved thereby of the payment of any claims hereunder because of such bankruptcy or insolvency 15 Insured The Insured in the Policy Schedule shall be responsible for payment of all premiums and shall act on behalf of all other Insureds with respect to the giving and receiving of notice of cancellation and the receipt of any return premium that may become payable under this policy 16 Hie Insured shall take reasonable precautions to prevent any Occurrence which may give rise to liability under this Policy 17 No admission offer promise payment or indemnity shall be made or given by or on behalf of the Insured without the written consent of the Company except at the Insureds own cost The Company shall be entitled to conduct in the name of the Insured the defence or settlement of any claim and shall have sole discretion in the conduct of any proceedings and in the settlement of any claim save as hereinafter provided in Conditions 19 and 20 18 Hie Company shall be entitled to pursue for their own benefit in the name of the Insured any rights against parties other than the Insured resulting from Haims under this Policy 19 The Insured shall give all such assistance to deal with claims and conduct of legal proceedings arising therefrom as the Company and/or their legal advisers and consultants may reasonably require The choice of Counsel is to be agreed by the Insured and the Company 20 (i) In connection with any claims against the Insured the Company may at any time pay to the Insured the Limits of Indemnity or any less amount for which such claims can be settled and thereupon the Company shall relinquish the control of such claims and be under no further liability in connection therewith except for Legal Costs which the Company have already agreed to bear in respect of matters prior to the date of payment 62/97411/D Page 20 of 27 Hanson Pic GX.D056619 0049-GLD-000056619 (il) The Company shall give to the Insured notice of the Companys intention to settle any claims in accordance with the provisions of (i) above whether by payment of the Limit of Indemnity or otherwise If having been given such notice the Insured shall then refuse to consent to the settlement proposed by the Company and shall elect to have such claims dealt with in any other manner the liability of the Company for those claims (including Legal Costs) shall be limited to (a) the amount for which the Company would have been liable had the Insured consented to such settlement or (b) the amount for which such claims are finally settled including Legal Costs whichever is the less All Legal Costs shall be paid by the Company in addition to the applicable Limits of Indemnity stated in the PoKcy Schedule 62/97411/D Page 21 Of 27 Hanson Pie GLD056620 0049-GLD-000056620 cc Memoranda attaching to and forming part of Policy N0.62/97411/D in the name of Hanson Pic and all Subsidiary and/or Associated Companies 1 Motor Contingent Liability The Company will indemnify the Insured In respect of Personal Injury or Property Damage arising out of the use by an Employee or director of the Insured of any mechanically propelled vehicle not the property of the Insured and when such vehicle is being used in connection with the Business provided always that the Company will not be liable (a) in respect of Property Damage to any such vehicle and <b) for amount recoverable if the Insured is entitled to an indemnity under any other insurance (which insurance shall be maintained in force) 2 Excess Motor Liability The policy shall apply to any Personal Injury and Property Damage excess beyond the amount payable under any primary motor insurance policy provided that (a) valid and collectable primary motor insurance policies be maintained in force during the Period of Insurance in respect of all the Insureds vehicles whilst being used in circumstances where the Insured is obliged to arrange compulsory motor insurance The minimum limit under such primary insurance will be US$250,000 (or local currency equivalent) or compulsory limits whichever is the greater except where a vehicle has been hired or leased for use by an Employee of the Insured primarily for the purpose of the business of the Insured in which case this policy will apply in excess of the limits of indemnity provided by die hire companys motor insurance policy (b) the indemnity under this clause shall be subject to the same terms condition and warranties as the primary motor insurance policies (c) the maximum liability of the Company under this clause shall be the difference between the limit under the applicable primary policy and the Limit of Indemnity stated in the Policy Schedule (d) the Company shall not be liable in respect of Property Damage to any such vehicle 3 S.C.M. Maryland Facility Notwithstanding anything contained in this policy to the contrary it is understood and agreed that Exclusion (K) shall not apply in respect of automobile accidents on the bridge resulting from operations at the S.C.M. Maryland Facility 62/97411/D Page 22 of 27 Hanson Pic GLD056621 0049-GLD-000056621 cc 4 Insurance Company Endorsement It is understood and agreed that such coverage as is afforded by this policy shall not apply to A) Personal Injury or Property Damage to or arising out of any property held in care custody or control of the Insured while the Insured is acting in any fiduciary capacity B) Property Damage to money currency coin bank notes postage and revenue stamps US savings stamps bullion precious metals of all kinds and any form and articles made therefrom jewelry watches necklaces bracelets gems precious and semi-precious stones bonds securities evidence of debts debentures scrip certificates receipts warrants rights transfers coupons drafts bills of exchange acceptances notes checks withdrawal orders money orders travelers letters of credit bills of lading abstracts of title insurance policies deeds mortgages upon real estate and/or upon chattels and upon interest therein and assignment of such policies mortgages and instruments and other valuable papers and documents and all other instruments similar to or the nature of the foregoing C) any liability arising out of any act error mistake or omission of any Insured any agent or sub-agent of any Insured while acting in a fiduciary capacity D) any liability assumed by any Insured or agent or sub-agent of any Insured under any insurance binder or contract of insurance suretyship or reinsurance E) any liability resulting from any error mistake or omission committed or alleged to have been committed by any Insured or any person for whom the Insured is legally responsible and arising out of (1) the writing or failure to write any contracts of insurance, suretyship or reinsurance (2) any consulting or insurance agent or broker activities (3) the operations of any investment loan or real estate departments (4) any inspections engineering or safety engineering services (5) any data processing or computer services F) any liability arising out of the handling of claims 5 Mining limitation Endorsement It is agreed that in respect of Peabody Holdings no coverages under this Policy apply to occurrences arising out of I a) damage to or destruction of underground property 62/97413/D Page 23 of 27 Hanson Pic 6LD056622 0049-GLD-000056622 rC b) the increased cost of reducing any underground property to physical possession above the surface of the earth or to the expense required to prevent or reduce loss of or damage to property resulting from acts or omissions causing underground damage Hie term underground property as used in the endorsement means oil gas or other mineral substances including any title interest or estate therein which at the time of the acts or omissions causing loss of damage to or destruction of such substance or loss impairment or reduction in the value of such title interest or estate has not been reduced to physical possession above the earths surface This term also means any well hole formation strata or area beneath the surface of the earth in or through which exploration for or production of any such substances is carried on or casing pipe bit tool pump or other drilling or well servicing machineiy or equipment which is located in any such well or hole beneath the earths surface at the time of the accident causing damage or destruction 2 Seepage pollution or contamination 3 Costs of restoration reclamation back-filling grading planting covering or other modification of mine working high walls spoil banks haulage ways or streams 4 Except insofar as coverage is available to the Insured in the underlying insurance as set forth in the Schedule of Underlying Insurance of the Policy this Policy shall not apply under section 1 (b) of this memorandum to A) damage to or destruction of any property arising out of 1) blasting or explosion other than the explosion of air or steam vessels piping under pressure prime movers machinery or power transmitting equipment or 2) the collapse of or structural damage to any building or :!&! structure due to (aa) grading of land excavation borrowing filling or back filling tunnelling pile driving cofferdam work or caisson work or (bb) to moving shoring underpinning raising or demolition of any building or structure or removal or rebuilding of any structural support thereof B) damage to or destruction of wires conduits pipes mains sewers tanks tunnels any similar property and any apparatus in connection therewith beneath the surface of the ground or water caused by and occurring during the use of mechanical equipment for the purpose of grading land paving excavating drilling borrowing filling back filling or pile driving or to damage to or destruction of property at any time resulting therefrom 62/97411/D Page 24 of 27 Hanson Pie 6LD056623 0049-GLD-000056623 c(" 6 Named Peril Pollution Endorsement Notwithstanding anything contained in this Polity to die contrary it is agreed that in respect of Peabody Holdings Exclusion (K) is replaced by the following (1) To Personal Injury or Property Damage arising out of the actual alleged or threatened discharge dispersal release or escape of pollutants a) at or from premises currently owned rented or occupied by the Insured or that the Insured formerly owned rented or occupied b) at or from any site or location used by or for the Insured or others for the handling storage disposal processing or treatment of waste material c) which are at any time transported handled stored treated disposed of or processed as waste by or for the Insured or any person or organization for whom the Insured may be legally responsible or d) at or from any site or location on which the Insured or any contractors or subcontractors working directly or indirectly on the Insureds behalf are performing operations (i) To test for monitor dean up remove contain treat detoxify or neutralize the pollutants or (ii) If the pollutants are brought on or to the site or location by or for the Insured (2) Any loss cost or expense arising out of any governmental direction or request that the Insured test for monitor clean up remove contain treat detoxify or neutralize pollutants Pollutants means any solid liquid gaseous or thermal irritant or contaminant including smoke vapor soot fumes adds alkalis chemicals and waste material Waste material includes materials which are intended to be or have been recyded reconditioned or reclaimed Provided however that this exdusion does not apply to Personal Injury or Property Damage arising from the Products Hazard and Completed Operations Hazard nor to such discharge dispersal release or escape directly caused by hostile fire explosion vandalism and malicious mischief lightning windstorm or upset or collision of a motor vehide and Dam Breach 7 Occupational Disease Exclusion It is agreed that in respect of Peabody Holdings this Policy shall not apply to any liability of or claims made against the Insured for any sickness or disease or death resulting therefrom to any Employees of Peabody Holdings arising out of and in the course of the Employees employment by Peabody Holdings or to any obligation of Peabody Holdings to indemnify another because of liability arising out of such sickness disease or death resulting therefrom as respects coal related diseases 62/97411/D Page 25 of 27 Hanson P!c GLDO56624 0049-GLD-000056624 ?g$jjjs rc 8 Drop Down Endorsement The liability of the Company shall not be increased by the refusal or inability of the Insured to pay the Deductible or retained limit or by the refusal or inability of any underlying insurer to pay whether by reason of insolvency bankruptcy or otherwise 9 Follow Form It is hereby noted and agreed that in respect of liability of the Insureds subsidiary companies outside of the United States of America and/or Canada coverage afforded under this policy shall follow the terms and conditions of Eagle Star Insurance Company limited Policy No 65005634 in the name of Hanson Pic and/or Subsidiary Companies where indemnity is provided such by policy notwithstanding any other terms and conditions contained herein 10 Cross Suits Endorsement It is agreed that in respect of the Insureds Subsidiaiy Peabody Holding the coverage afforded by this policy does not apply to a claim for damages arising out of Personal Injury or Property Damage initiated alleged or caused to be brought about by a named Insured or additional named Insured covered by this policy against any other named Insured covered by this policy 11 Indemnity to Principal It is agreed that in the event of any claim in respect of which the Insured would be entitled to receive indemnity under this Policy being brought or made against any public or local authority or other principal the Company will indemnify the said public or local authority or other principal against such claim and/or any costs charges and expenses in respect thereof Provided always that the Company shall not be liable under this Memorandum unless the Company has the sole conduct and control of all claims Subject otherwise to the terms exceptions and conditions of the Policy Date:2 July 1993 Gerling Konzern General Insurance Company -UK Branch 62/97411/D Page 26 of 27 Hanson Pic GLD056625 0049-GLD-000056625 c Memorandum No 12 attaching to and forming part ofPolicy No 62/97411/D in the name of Hanson PLC and all Subsidiary and/or Associated Companies It is agreed that as from (i) the 17th December 1991 International Mini Warehouse Associates shall be deemed to be an "Associated and/or Subsidiary Company" of the Insured and the'following shall be added to the Schedule of Underlying Insurances:- V) INTERNATIONAL MINI WAREHOUSE ASSOCIATES Automobile Liability Hartford Insurance Company 03/01/92-03/01/93 $1,000,000 combined single limit Employee Liability Hartford Insurance Company 02/23/92-02/23/93 $100,000 each accident $500,000 each policy disease $100,000 each employee rfgac Commercial General Liability Adas Insurance Company 01/01/92-01/01/93 $1,000,000 each occurrence $2,000,000 general aggregate $1,000,000 products/compfcted operations aggregate Commercial General Liability Allas Insurance Company 01/01/92-01/01/93 $1,000,000 personal and advertising injury Fire damage legal liability Water damage legal liability Umbrella liability Chubb Insurance Group 01/02/92 - 01/02/93 $10,000,000 peroccurrence $10,000,000 products/completed operations aggregate $10,000,000 general aggregate (it) the 14th May 1992 Hampshire County Council are interested in the insurance provided by this Policy as Employers in respect of contracts made with the Insured as Contractors incepting during the Period of Insurance (iii) the 1st October 1992 (a) this Policy is renewed for a further period of 12 months in consideration of which a Renewal Premium of US$1,100,000.00 in full is payable to the Company (b) Beazer pic Beazer East Inc Beazer West Inc and Tidewater Construction Corporation are each deemed to be an "Associated and/or Subsidiary Company" of the Insured (c) the Schedule of Underlying Insurances is cancelled and replaced by Attachment 1 hereto (d) notwithstanding anything contained in this Polity to the contrary it is agreed that such coverage as is afforded by this Polity shall not apply to: (i) Property Damage to any property or equipment leased by the Insured or (ii) Property Damage to property being installed erected or worked upon by the > Insured his agents or subcontractors or (iii) Personal Injury or Property Damage arising out of any project insured under a "wrap-up" or any similar rating plan or (iv) Personal Injury or Property Damage arising out of any professional services performed by or on behalf of the Insured including but not limited to the preparation or approval of maps plans opinions reports surveys designs or specifications and any supervisory inspection or engineering services GLD056626 0049-GLD-000056626 rc It is further agreed that such coverage as is afforded by the Policy shall not apply to: (I) Property Damage arising out of: (a) blasting or explosion other than the explosion of air or steam vessels piping under pressure prime movers machinery or power transmitting equipment or (b) the collapse of or structural injury to any building or structural injury to any building or structure due to: (1) grading of land excavating burrowing filling or back-filling tunnelling pile driving coffer-dam work or caisson work or (2) moving shoring underpinning raising or demolition of any building or structure or removal or rebuilding of any structural support thereof or (3) damage to or destruction of wires conduits pipes mains sewers tanks tunnels any similar property and any apparatus in connection therewith beneath the surface of the ground water caused by and occurring during the use of mechanical equipment for the purpose of grading land paving excavating drilling burrowing filling back-filling or pile driving (ii) any liability assumed by the Insured under any contract or agreement unless such damages are covered by valid and collectible underlying insurances as listed in the Schedule of Underlying Insurances for the full limits of liability shown therein and then only for such hazards for which coverage is afforded under said Underlying Insurance (e) Memorandum No 5 is cancelled and of no effect (f) it is agreed that no coverages under this Policy apply to occurrences arising out of 1 a) damage to or destruction of underground property b) the increased cost of reducing any underground property to physical possession above the surface of the earth or to the expense required to prevent or reduce loss of or damage to property resulting from acts or omissions causing underground damage The term "underground property" as used in this endorsement means oil gas water or other mineral substances including any title interest or estate therein which at the time of the acts or omissions causing loss of damage to or destruction of such substance or loss impairment or reduction in the value of such title interest or estate has not been reduced to physical possession above the earth's surface This term also means any well hole formation strata or area beneath the surface of the earth in or through which exploration for or production of ary such substances is carried on or casing pipe bit tool pump or other drilling or well servicing machinery or equipment which is located in any such well or hole beneath the earth's surface at the time of the accident causing damage or destruction GLD056627 0049-GLD-000056627 a vyW!* rc 2 Subsidence settling sinking slipping falling away caving in shifting eroding mud flow rising tilting or any other movement of land or earth if any of the foregoing emanates from an above ground or underground mine whether active inactive or abandoned or operations being conducted therein 3 Seepage pollution or contamination 4 Costs of restoration reclamation back-filling grading planting covering or other modification of mine working high walls spoil banks haulage ways or streams 5 Except insofar as coverage is available to the Insured in the underlying insurance as set forth in the Schedule of Underlying Insurance of the Policy this Policy shall not apply under section 1 (b) of this memorandum to A) damage to or destruction of any property arising out of 1) blasting or explosion other than the explosion of air or steam vessels piping under pressure prime movers machinery or power transmitting equipment or 2) the collapse of or structural damage to any building or structure due to (aa) grading of land excavation borrowing filling or back-filling tunnelling pile driving cofferdam work or caisson work or (bb) to moving shoring underpinning raising or demolition of any building or structure or removal or rebuilding of any structural support thereof B) damage to or destruction of wires conduits pipes mains sewers tanks tunnels any similar property and any apparatus in connection therewith beneath the surface of the ground or water caused by and occurring during the use of mechanical equipment for the purpose of grading land paving excavating drilling borrowing filling back-filling or pile driving or to damage to or destruction of property at any time resulting therefrom It is further agreed that the Policy does not apply to mining operations at any location other than that at which mining operations were being conducted at the inception of this Policy unless the Insured has notified the Company of the commencement of such operations and the Company has issued a memorandum to the Policy extending it to such operations (g) the term "Peabody Holdings" mentioned in Memorandum No 6 shall be deemed to read "Peabody Holdings and Beazer East Inc" (h) this Policy shall not apply to any of the discontinued operations of Beazer East Inc (iv) the 5th November 1992 A & S Building Systems Inc are no longer deemed to be an "Associated and/or subsidiary Company" of the Insured (v) the 17th November 1992 Weber Aircraft Inc are no longer deemed to be an "Associated and/or Subsidiary Company*' of the Insured GLD056628 0049-GLD-000056628  .hJlM-Sf r (vi) tbe 1st April 1993 (a) Policy Nos GL01423786 BAP1423785 (non Texas States) and TAP1423787 (Texas) are deleted from item ii) Beazer West of the Schedule of Underlying Insurances (b) Beazer West Inc shall be deemed to be included within item i) Hanson Industries Domestic USA and Canada of the Schedule of underlying Insurances (c) the North Texas Cement Company shall be deemed to be an "Associated and/or Subsidiary Company" of tbe Insured and the following item shall be added to the Schedule of Underlying Insurances:- VI) NORTHTEXAS CEMENT COMPANY Automobile Liability General Products Liability Zurich American Insurance Co Zurich American Insurance Co 01/04/93 01/04/94 01/04/93-01/04/94 52,000,000 Combined Single Limit $3,000,000 each occurrence $3,000,000 general aggregate $5,000,000 prodom/compieted operation* aggregate $3,000,000 pcrsonel/adi'crtising $50,000 fire legal $5,000 medical expenses (vii) the 1st May 1993 this Policy subject to its terms exceptions limits and conditions extends to indemnify the Insured in respect of their pile testing activities from watercraft in Chesapeake Bay Virginia Provided always that die Company shall not be liable for occurrences arising out of or caused by the navigation or piloting or the like of the said watercraft (vili) the 25th June 1993 Saute Fe Coal are deemed to be and Goldfields Mining Corporation are no longer deemed to be an "Associated and/or Subsidiary Company" of the Insured (xi) the 1st October 1993 (a) this Policy is renewed for a further period of 12 months in consideration of which a Renewal Premium of US$1,100,000.00 in full is payable to the Company (b) the Schedule of Underlying Insurances is cancelled and replaced by Attachment 2 hereto (c) paragraph (i) of Exclusion (K) is deemed to be deleted and replaced by the foilowing:- "(1) to Personal Injury or Property Damage arising out of the actual alleged or threatened discharge dispersal release or escape of pollutants a) at or from premises currently owned rented or occupied by the Insured or that the Insured formerly owned rented or occupied b) at or from any site or location used by or for the Insured or others for the handling storage disposal processing or treatment of waste material c) which are at any time transported handled stored treated disposed of or processed as waste by or for the Insured or any person or organization for whom the Insured may be legally responsible or GLD056629 0049-GLD-000056629 d) at or from any site or location on which the Insured or any contractors or subcontractors working directly or indirectly on the Insureds behalf are performing operations (i) to test for monitor dean up remove contain treat detoxify or neutralize the pollutants or (ii) if the pollutants are brought on or to the site ;or location by or for the Insured (2) Any loss cost or expense arising out of any governmental direction or request that the Insured test for monitor dean up remove contain treat detoxify or neutralize pollutants in respect of any claim judgement award or settlement made in any country or territory which operates under the laws of the United States of America or Canada or any order made anywhere in the world to enforce such judgement award or settlement whether in whole or part Pollutants means any solid liquid gaseous or thermal irritant or contaminant including smoke vapor soot fumes adds alkalis chemicals and waste material Waste material indudes materials which are intended to be or have been recyded reconditioned or reclaimed Provided (I) however that this Exdusion does not apply to Personal Injury or Property Damage arising from discharge dispersal release or escape directly caused by hostile fire explosion vandalism and malicious mischief lightning windstorm or upset or collision of a motor vehide (ii) that the Company shall not be liable for the first US$5,000,000 of each and every claim in respect of this extension Subject otherwise to the terms exceptions and conditions of the Policy Date:9 December 1993 Gerllng Konzem General Insurance Company -UK Branch GLD056630 0049-GLD-000056630 cc Memorandum No 13 attaching to and forming part of Policy No 62/97411/D in the name of Hanson PLC and all Subsidiary and/or Associated Companies It is agreed that as from the 1st October 1991 Memorandum No 9 "Follow Form" is amended to read as follows:- "It is hereby noted and agreed that in respect of liability of the Insureds subsidiary companies outside of the United States of America and/or Canada coverage afforded under this policy shall follow the terms and conditions of Eagle Star Insurance Company limited Policy No 65005634 in the name of Hanson PLC and/or Subsidiary Companies where indemnity is provided by such policy notwithstanding any other terms and conditions contained herein but subject always to Exclusion (K)n Subject otherwise to the terms exceptions and conditions of the Policy Dateill January 1994 Signed For and on behalffciQ2p&^ Gerling Konzem General Insurance Company -UK Branch teji&iii 6LD056631 0049-GLD-000056631 c vr \ Memorandum No 14 attaching to and forming part of Policy No 62/97411/D in the name of > Hanson PLC and all Subsidiaiy and/or Associated Companies It is'agreed that (i) as from the 1st October 1993 (a) notwithstanding anything contained in paragraph (iii)(h) of Memorandum No 12 to the contrary the indemnity provided by this Policy shall apply to the following discontinued operations of Beazer East Inc in respect of the Products manufactured sold handled or distributed by the Divisions prior to their date of divestiture:- Date of Divestiture Division Name 8th July 1983 Environmental Elements 25th April 1984 Engineering Construction Division 13th September 1988 Kopvenco 16th September 1988 Keystone Environmental Resources 28th September 1988 Paint & Coatings Operations (Kopcoat) 15th October 1988 Engineering Group (Chemtech) 2nd December 1988 Meadow Steel and Ivy Steel 16th December 1988 Industrial Specialty Chemical Division (INDSPEC Chemical Corporation) 29th December 1988 Tar Division Wood Division Coke Oven and Commercial Roofings Operations (Koppers Industries Inc) 4th January 1989 Theim Corporation 19th January 1989 Insulation Division 14th February 1989 Wolman 27th February 1989 Polyester Resin Operation It is further noted that for the purposes of tb above Divisions the Underlying Insurer is the Lexington under their Policy No 5594404 (b) Definition (D) (c) shall apply to all broadcasts or telecasts of the Insured's subsidiary Company Melody Radio Limited whether in connection with an advertisement or not during the Period of Insurance Provided that the Company shall not be liable for 10% of each and every claim under this extension Page 1 of S GLD056632 0049-GLD-000056632 ;vv. j ||| cc (c) the following policy is incorporated into the Schedule of Underlying Insurances:- COVER INSURER TERM LIMIT OF INDEMNITY REST OF w o r l d p r ima r y p o l ic ie s Motor Insurance Policy No 99147715 Eagle StarInsurance Company 01/10/93 - 30/09/94 1,000,000 any one occurrence for aixside liability (ii) as from the 31st October 1993 the Limit of Indemnity in respect of the Comprehensive General & Automobile liability Pol No ILK-PC-631J743-A-93 issued by theTravellers Insurance Company as specified in the Schedule of Underlying Insurers is amended to read "$5,000,000 per occurrence and $5,000,000 in the aggregate" and the Term is amended to read "31/10/93 - 31/10/94" Oii) as from the 31st December 1993 Axelson and Axelson of Canada are no longer deemed to be a "Subsidiary and/or Associated Company" of the Insured 0v) Subject to payment of the Renewal Premium to the Company this Policy is renewed for a further Period of Insurance as stated below PERIOD OF INSURANCE: From 1 October, 1994 ) both days To 30 September, 1995 ) inclusive RENEWAL PREMIUM: US$1,100,000 in full INSURANCE PREMIUM TAX: US$2,379.13 payable in addition to the above (iv) as from the 1st October 1994 (a) the amounts of US$10,000,000 specified in the Limit of Indemnity shall each be deemed to read "US$5,000,000" (b) the Schedule of Underlying Insurances is cancelled and replaced by Attachment 1 hereto (b) paragraph (i) of Exclusion (K) is deemed to be deleted and replaced by the following:- "1 to Personal Injury or Property Damage arising out of the actual alleged or threatened discharge dispersal or escape of Pollutants: A) at or from premises currently owned rented or occupied by the Insured or that the Insured formerly owned rented or occupied B) at or from any site or location used by or for the Insured or others for the handling storage disposal processing or treatment of waste material C) which are at any time transported handled stored treated disposed of or processed as waste by or for the Insured or any person or organisation for whom the Insured may be legally responsible or Page 2 of 5 GLD056633 0049-GLD-000056633 cc D) at or from any site or location on which the Insured or any contractors or subcontractors working directly or indirectly on the Insured's behalf are performing operations (i) to test for monitor clean up remove contain treat detoxify or neutralize the Pollutants or (ii) if the Pollutants are brought on or to the site or location by or for the Insured 2 any loss cost or expense arising out of any governmental directive order or request that the Insured test for monitor dean up remove contain treat detoxify or neutralize Pollutants in respect of any claim judgement award or settlement made in any country or territoiy which operates under the lawas of the United States of America or Canada or to any order made anywhere in the world to enforce such judgement award or settlement whether in whole or in part Pollutants means any solid liquid gaseous or thermal irritant or contaminant including smoke vapour soot fumes adds alkalis chemicals and waste material Waste material includes materials which are intended to be or have been recycled reconditioned or reclaimed Provided however that (i) this Exclusion above does not apply to 1 discharge dispersal release or escape directly caused by fire explosion lightning windstorm vandalism or malicious mischief collapse riot and civil commotion flood earthquake collision or upset of a motor vehicle mobile equipment or aircraft automatic sprinkler leakage mechanical breakdown or 2 Personal Injury or Property Damage which is within the Product Hazard or the Completed Operations Hazard (ii) will also not apply if said discharge dispersal release or escape of Pollutants was not a result of a named peril occurrence as defined in Proviso (i) 1 above and meets all the following conditions: A) it was accidental and neither expected nor intended by the Insured B) it was instantaneous and was demonstrable as having commenced at a specific time and date during the Period of Insurance C) its commencement became known to the Insured within 7 (seven) days D) its commencement was reported in writing to the company within 21 (twenty-one) days of becoming known to the Insureds Risk Manager E) reasonable effort was expended by the Insured to terminate the situation as soon as conditions permitted Nothing contained in this Proviso shall operate to provide any coverage with respect to Page 3of5 GLD056634 0049-GLD-000056634 fc A any site or location used by the Insured or by others on the Insured's behalf for the handling storage disposal dumping processing or treatment of waste material B any fines or penalties C any cleanup costs mandated bythe Superfund Programor any Federal State or Local Governmental Authority However this specific Exclusion 3 shall not serve to deny coverage for third party clean up costs otherwise covered by this Exclusion simply because of the involvement of a Governmental Authority D acid rain E dean up removalcontainmenttreatmentdetoxification or neutralization of Pollutants situated on premises the Insured owns rents or occupies at the time of the actual discharge dispersal seepage migration release or escape of said Pollutants F water pollution caused by oil or its derivatives In the event of a disagreement as to the interpretation of this Exclusion the disagreement shall be submitted to binding arbitration before a panel of three (3) Arbitrators within 30 days of a written request from for arbitration tty either the Insured or the Company each party will choose an Arbitrator if the two Arbitrators are unable to agree within one month upon the third Arbitrator such Arbitrator shall at the request of either party be selected by the American Arbitration Association in accordance with its rules and procedures The parties shall submit their cases to the panel by written and oral evidence at a hearing time and place selected by the third Arbitrator The panel shall be relieved of all judicial formality shall not be obligated to adhere to the strict rules of law or of evidence shall seek to enforce the intent of the parties hereto and may refer to but are not limited to relevant legal principles The decision of at least two (2) of the three (3) Panel members shall be binding and final and not subject to appeal except for grounds of fraud and gross misconduct by the Arbitrators The award will be issued within 30 days of the close of the hearings Each party shall bear the expenses of its designated Arbitrator and shall jointly and equally share with the other the expense of the third Arbitrator and of the Arbitration The arbitration proceedings shall take place in or in the vicinity of New York NY The procedural rules applicable to this arbitration shall except as provided otherwise herein be in accordance with the Commercial Arbitration Rules of the American Arbitration Association It is further understood and agreed the above coverage is subject to a per occurrence retention of US$5,000,000 (indemnity only) whether insured or self-insured (v) as from the 9th March 1994 various Beazer Homes Companies details of which have been lodged with the Company having been sold and no longer deemed to be Subsidiary or Associated Companies of the Insured there is a return premium of US$11,000.00 due to the Insured Page 4 of 5 GLD056635 0049-GLD-000056635 (vi) as from the 31st August 1994 International Miniwarehouse Associates are no longer deemed to be a Subsidiary or Associate Company of the Insured (vii) as from the 23rd September 1994 Proctor and Schwartz are no longer deemed to be a Subsidiary or Associate Company of the Insured (viii) as from the 30th September 1994 Scholes Group PLC are included within the Subsidiary and/or Associated Companies of die Insured Subject otherwise to the terms exceptions and conditions of the Polity Date: 25 April 1995 Exmd: Signed For and on behalf of Gerling Konzern General Insurance Company -UK Branch Page 5 of 5 GIiD056636 c ATTACHMENT 1 SCHEDULE OF UNDERLYING INSURANCES Period of Insurance: 1st October 1994/30th September 1995 COVER INSURER TERM LIMIT OF INDEMNITY REST OF WORLD PRIMARY POLICIES Public and Products Liability (including DIC/DIL for overseas territories Public and Products Liability (SCM Chemicals Australia) Motor Insurance Pol No 99147715 100% Eagle Star Insurance Group 100% Switzerland General Insurance Company Eagle Star Insurance Company 01/10/94 - 30/09/95 1,000,000 any one occurrence, in aggregate for Products Liability 01/10/94-30/09/95 A$5,000,000 each occurrence and in aggregate 01/10/94 - 30/09/95 1,000,000 any one occurrence for airtide liability USA/CA1MADA PRIMARY POLICIES I) HANSON INDUSTRIES - Domestic USA and Canada Employers Liability CIGNA Comprehensive General Liability Products/Completed Operations Automobile liability CIGNA CIGNA CIGNA 01/10/94- 01/10/95 $2,000,000each accident $2,000,000disease poSey limit $2,000,000 disease each employee 01/10/94 -01/10/95 $3,000,000 per occurrence indemnity only (noaggregate) 01/10/94-01/10/95 $5,000,000 per occurrence indemnity only (no aggregate) 01/10/94-01/10/95 $2,000,000 peroccurrence CSLindcranityonly 12) Beazer West Inc Employers' Liability Pol No 04 XC 223 SCA Aetna Casualty & Surety 01/8/94-01/8/95 Sl.000.000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee ID) FOREIGN LIABILITY Comprehensive General & Automobile Liability Pol No CXC035328 Employers Liability Pol No TBA CIGNA CIGNA IV) PEABODY HOLDING CO Employers Liability Pol No OBCO1559202 1 Old Republic a Peabody b Lee Ranch Coal 01/08/94 - 01/08/95 01/8/94-01/8/95 S5,OCO,000 per occurrence $10,000,000 aggregate $5,000,000 per accident $5,000,000 aggregate peraccident $5,000,000 aggregate disease 01/10/93-01/10/95 $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee Employers Liability Pol No OBCO1550702 2 Old Republic V) TIDEWATER CONSTRUCTION CORPORATION Commercial General Liability Pol No Liberty Mutual RG1-651-004723-074 01/10/94 01/10/95 $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee Cl/3/94-01/3/95 $2,000,000 per occurrence S100/W0 deductible 62/97411/D Page 1 of 2 Hanson PI.C GLD056637 0049-GLD-000056637 r Kmployere' LiobiEtyPol Nos WC2-6510W723-034/O64 and WC2-6S1-004S02 134 * Liberty Mutual Automobile liability Pol Nos AS1-651004723-134/664 andAS1-651-004502124 Liberty Mutual Owners and Contractors Liability Pol No LX1-651-004723-S53 Liberty Mutual C 01/3/94-01/3/95 $1,000,000each accident SI,000,000 disease policy limit SI,000,000 disease each employee S2SO,000 SIR perclaim 01/3/94-01/3/95 $2,000,000 peroccurrence 01/3/94 - 01/3/95 $2,000,000 peroccurrence Umbrella LiabilityPol No RT1-6S1004*723-694 Liberty Mutual 01/3/94-01/3/95 $8,000,000 peroccurrence VI) RIVERSIDE CEMENT COMPANYA CALIFORNIA GENERAL PARTNERSHIP including Riverside Cement Company Partin Limestone Products Company and RIC Company (Bearer West Inc) General liability Pol No GL06580920 Zurich American Insurance Co W/7/94-01/7/95 $5,000,000 per occurrence $10,000,900 general aggregate $10,000,000 produtts/completed operations aggregate $5,000,000personal and advertising injury $50,000 fire damage $5,000 medical expense $250,000 loss limit Automobile Liability Pol No BAP6S80921 Zurich American Insurance Co 01/7/94-01/7/95 $5,000,000 combined single limit $250,000 los limit Excess liability Pol No BE308873S American International Ins Co 01/7/94-01/7/95 $10,000/700 excess primaries Excess liability Pol No 79079904 Federal Insurance Co 01/7/94-01/7/95 $25,000/700 excess $10,000,000 excess primaries Excess Liability Pol No HXLF866051 and HXLC1116S3 Home Insurance Co 01/7/94-01/7/95 $10,000,1700 excess $35,000,000 excess primaries VII) GIFFORD-HILLAMERICAN INC General Liability Pol No CRR338S92 Commercial Union Insurance Co Automobile Liability Pol No NRR261031 Excess Liability Pol No CRDZQ8088 Commercial Union Insurance Co Pacific Employers Insurance Co Employers' Liability Pol No WA2-190089731-013 Liberty Mutual 01/1/94-01/1/95 01/1/94-01/1/9S 01/1/94-01/1/95 01/1/94-Cl/1/95 $1,000,000 per occurrence $2,000,000 general aggregate $2,000,000 products/completed operations aggregate $1,000,000 personal and advertising injury $1,000,000 combined single limit 54,000,000 peroccurrence $4/700/700 general aggregate $4,000,000 products/completed operations aggregate $500,000 62/97411/D Page 2 of 2 Hanson PLC GLD056638 0049-GLD-000056638 s c h ST c j l e o f UNDERLYING INSURAlC S COVER INSURER REST OF WORLD PRIMARY POLICIES Public nod Products Liability (including DICflXL&rovaseastttzitorics) 100% Eagle StarInsurance Group Publicsod Product* liability (SCM f'frtpirflU. Australia) 100% Switzerland General Insurance Company TERM LIMIT OF INDEMNITY 01/10/91 >30/09/93 1,000,000 any one occurrence, in aggregate for Products Liability 01/10/91 >30/09/93 AS3,000,000 cadi occurrence and in aggregate USA/CANADA PRIMARY POLICIES I) HANSON INDUSTRIES AND BEAZER EAST Employers Liability National Union Comprehensive General liability Prodocts/CompUted Operations 10 FOREIGN LIABILITY Comprehensive General & Automobile liability Employers Liability National Union National Uniea Travelers Insurance Company Traveler* Insurance Company 01/10/91 01/10/92 83.000,000 each accident $2,000,000 disease policy limit 2,000,000 disease each employee 01/10/91 01/10/92 $3,000,000 per occurrence indemnity only (no aggregate) 01/10/91 01/12/92 $5,000,000 per oeeuircom - indemnity only (no aggregate) 01/10/91 01/10/92 55,000,000 per occurrence 510.000.000 Combined angle limit per aggregate 01/10/91 01/10/92 55,000,000 peraccident 55,000/100 aggregate per accident 55.000.000 agg-egatc disease HI) HANSON NATURAL RESOURCES CORPORATION (CAVENHAM) Employers Liability National Union 01/06/91 - 01/01/92 51,000,000excessof5500,000SIR-LA 51,000,000 excess ofS250.000 SIR - MS IV) PEABODY COAL Employers Liability Old Republic 01/01/91 - 01/01/92 5100,000 each accident SS00.040 disease policy limit $100,000 disease eacb employee V) INTERNATIONAL MINI WAREHOUSEASSOCIATES Automobile Liability Hartford Insurance Company 03/01/92 - 03/01/93 ; 51,000,000 combined single limit Employers Liability Hartford Insurance Company 02/23/92 02/23/93 5100,000 each accident $500,000 each policy disease 5100,000 each employee disease Comroerical General Liability Allis Insurance Company 01/01/92 - 01/01/93 51,000,000 each occurrence 52.000.000 general aggregate 51.000.000 products/completed operations aggregate Commercial General Liability Atlas InBtmnoe Company 01/01/92 - 01/01/93 51,000,000 personal and advertising injury Fue damage legal liability Water damage legal liability Umbrella Liability Chubb Insurance Group 01/02/92 - 01/02/93 510,000,000 per occurrence 510.000.000 products/completed operations aggregate 510,000,000 general aggregate 62/974U/D Page 27 of 27 Hanson Pit GLD056639 0049-GLD-000056639 rc J SCHEDULE OF UNDERLYING INSURANCES COVER INSURER TERM LIMIT OF INDEMNITY REST OF WORLD PRIMARY POLICIES Public and Products Liability (including DIC/DIL foroverseas territories Publie and Products Liability (SCM Chemicals - Australia) 100% Eagle Star Insurance Group 100% Switzerland General Insurance Company 01/10/91 - 30/09/92 01/10/91-30/09/92 1,000,000 any one occurrence, in aggregated Products Liability A$5,000,000 dach occurrence and in aggregate ' USA/CANADA PRIMARY POLICIES I) HANSON INDUSTRIES Employers liability National Union Comprehensive General Liability National Union Products/Completed Operations National Union Automobile Liability National Union IQ FOREIGN LIABILITY Comprehensive General & Automobile Travelers Insurance Company Liability Employees Liability Travelers Insurance Company III) HANSON NATURAL RESOURCES CORPORATION (CAVENHAM) 01/10/91-01/10/92 $2,000/300 each accident $2/300,000 disease policy limit $2,000,000 disease each employee 01/10/91-01/10/92 $3/300,000 per occurrence. indemnity only (no aggregate) 01/10/91 - 01/10/92 $5,000,000 per occurrence indemnity only (no aggregate) 01/10/91-01/10/92 $2,000,000 per occurrence CSL indemnity only 01/10/91 - 01/10/92 $5/300/300 per occurrence $10,000,000 CSL peraggregate 01/10/91-01/10/92 $5,000,000 per accident S5,000/)00 aggregate per accident $5,000,000 aggregate disease Employers Liability IV) PEABODY COAL National Union 01/06/91 - 01/01/92 $1,000/300 meets of $500/300 SIR -LA $1,000/300 excess Of $250,000 SIR-MS Employers liability Old Republic 01/01/91 - 01/01/92 $100,000 each accident $500/300 disease policy limit $100,000 disease each employee 62/97411/D Page 27 of 27 Hanson PLC GLD056640 0049-GLD-000056640 Memorandum No 12 attaching to and forming part of Policy No 62/97411/D in the name of Hanson PLC and all Subsidiary and/or Associated Companies It is agreed that as from (i) the 17th December 1991 International Mini Warehouse Associates shall be deemed to be an "Associated and/or Subsidiary Company" of the Insured and the* following shall be added to the Schedule of Underlying Insurances:- V) INTERNATIONALMINI WAREHOUSE ASSOCIATES Automobile Liability Hartford Insurance Company 03/01/92 - 03/01/93 SI,000,000 combined single limit Employers Liability Hartford Insurance Company 02/23/92 - 02/23/93 $100,000 each accident $500,000 each policy disease 5100,000 each employee disease Commercial General Liability Atlas Insurance Company 01/01/92.01/01/93 SI,000,000 each occurrence $2,000,000 general aggregate SI,000,000 products/completed operations aggregate Commercial General Liability Atlas Insurance Company 01/01/92 - 01/01/93 Sl.000,000 personal and advertising injury Fire damage legal liability Water damage legal liability Umbrella Liability Chubb Insurance Group 01/02/92 - 01/02/93 510.000.000 per occurrence 510.000.000 products/completed operations aggregate S10,000,000 general aggregate (ii) the 14th May 1992 Hampshire County Council are interested in the insurance provided by this Policy as Employers in respect of contracts made with the Insured as Contractors incepting during the Period of Insurance (iii) the 1st October 1992 (a) this Policy is renewed for a further period of 12 months in consideration of which a Renewal Premium of US$1,100,000.00 in full is payable to the Company (b) Beazer pic Beazer East Inc Beazer West Inc and Tidewater Construction Corporation are each deemed to be an "Associated and/or Subsidiary Company" of the Insured (c) the Schedule of Underlying Insurances is cancelled and replaced by Attachment 1 hereto (d) notwithstanding anything contained in this Policy to the contrary it is agreed that such coverage as is afforded by this Policy shall not apply to: (i) Property Damage to any property or equipment leased by the Insured or (ii) Property Damage to property being installed erected or worked upon by the Insured his agents or subcontractors or (iii) Personal Injury or Property Damage arising out of any project insured under a "wrap-up" or any similar rating plan or (iv) Personal Injury or Property Damage arising out of any professional services performed by or on behalf of the Insured including but not limited to the preparation or approval of maps plans opinions reports surveys designs or specifications and any supervisory inspection or engineering services GIiD056641 0049-G LD-000056641 > fc It is further agreed that such coverage as is afforded by the Policy shall not apply to: (i) Property Damage arising out of: (a) blasting or explosion other than the explosion of air or steam vessels piping under pressure prime movers machinery or power transmitting equipment or >S!i (b) the collapse of or structural injury to any building or structural injury to any building or structure due to: (1) grading of land excavating burrowing filling or back-filling tunnelling pile driving coffer-dam work or caisson work or (2) moving shoring underpinning raising or demolition of any building or structure or removal or rebuilding of any structural support thereof or (3) damage to or destruction of wires conduits pipes mains sewers tanks tunnels any similar property and any apparatus in connection therewith beneath the surface of the ground water caused by and occurring during the use of mechanical equipment for the purpose of grading land paving excavating drilling burrowing filling back-filling or pile driving (ii) any liability assumed by the Insured under any contract or agreement unless such damages are covered by valid and collectible underlying insurances as listed in the Schedule of Underlying Insurances for the full limits of liability shown therein and then only for such hazards for which coverage is afforded under said Underlying Insurance (e) Memorandum No 5 is cancelled and of no effect (f) it is agreed that no coverages under this Policy apply to occurrences arising out of 1 a) damage to or destruction of underground property b) the increased cost of reducing any underground property to physical possession above the surface of the earth or to the expense required to prevent or reduce loss of or damage to property resulting from acts or omissions causing underground damage The term "underground property1' as used in this endorsement means oil gas water or other mineral substances including any title interest or estate therein which at the time of the acts or omissions causing loss of damage to or destruction of such substance or loss impairment or reduction in the value of such title interest or estate has not been reduced to physical possession above the earth's surface This term also means any well hole formation strata or area beneath the surface of the earth in or through which exploration for or production of any such substances is carried on or casing pipe bit tool pump or other drilling or well servicing machinery or equipment which is located in any such well or hole beneath the earth's surface at the time of the accident causing damage or destruction GLD056642 0049-GLD-000056642 2 Subsidence settling sinking slipping falling away caving in shifting eroding mud flow rising tilting or any other movement of land or earth if any of the foregoing emanates from an above ground or underground mine whether active inactive or abandoned or operations being conducted therein 3 Seepage pollution or contamination 4 Costs of restoration reclamation back-filling grading planting covering or other modification of mine working high wails spoil banks haulage ways or streams 5 Except insofar as coverage is available to the Insured in the underlying insurance as set forth in the Schedule of Underlying Insurance of the Policy this Policy shall not apply under section 1 (b) of this memorandum to A) damage to or destruction of any property arising out of 1) blasting or explosion other than the explosion of air or steam vessels piping under pressure prime movers machinery or power transmitting equipment or 2) the collapse of or structural damage to any building or structure due to (aa) grading of land excavation borrowing filling or back-filling tunnelling pile driving cofferdam work or caisson work or (bb) to moving shoring underpinning raising or demolition of any building or structure or removal or rebuilding of any structural support thereof B) damage to or destruction of wires conduits pipes mains sewers tanks tunnels any similar property and any apparatus in connection therewith beneath the surface of the ground or water caused by and occurring during the use of mechanical equipment for the purpose of grading land paving excavating drilling borrowing filling back-filling or pile driving or to damage to or destruction of property at any time resulting therefrom It is further agreed that the Polity does not apply to mining operations at any location other than that at which mining operations were being conducted at the inception of this Policy unless the Insured has notified the Company of the commencement of such operations and the Company has issued a memorandum to the Policy extending it to such operations (g) the term "Peabody Holdings" mentioned in. Memorandum No 6 shall be deemed to read "Peabody Holdings and Beazer East Inc" (h) this Policy shalL not apply to any of the discontinued operations of Beazer East Inc (iv) the 5th November 1992 A & S Building Systems Inc are no longer deemed to be an "Associated and/or subsidiary Company" of the Insured (v) the 17th November 1992 Weber Aircraft Inc are no longer deemed to be an "Associated and/or Subsidiary Company" of the Insured GLD056643 0049-GLD-000056643 (' (vi) the 1st April 1993 (a) Policy Nos GL01423786 BAP1423785 (non Texas States) and TAP1423787 (Texas) are deleted from item ii) Beazer West of the Schedule of Underlying Insurances (b) Beazer West Inc shall be deemed to be included within item i) Hanson Industries Domestic USA and Canada of the Schedule of underlying Insurances (c) the North Texas Cement Company shall be deemed to be an "Associated and/or Subsidiary Company" of the Insured and the following item shall be added to the Schedule of Underlying Insurances:- VI) NORTH TEXAS CEMENT COMPANY Automobile Liability General Products Liability Zurich American Insurance Co Zurich American Insurance Co 01/04/93 - 01/04/94 01/04/93 - 01/04/94 $2,000,000 Combined Single Limit $3,000,000 each occurrence $3,000,000 general aggregate $5,000,000 products/completed operations aggregate $3,000,000 pcreonal/advcrtising $50,000 Grc legal $3,000 medical expenses (vii) the 1st May 1993 this Policy subject to its terms exceptions limits and conditions extends to indemnify the Insured in respect of their pile testing activities from watercraft in Chesapeake Bay Virginia Provided always that the Company shall not be liable for occurrences arising out of or caused by the navigation or piloting or the like of the said watercraft (viii) the 25th June 1993 Sante Fe Coal are deemed to be and Goldfields Mining Corporation are no longer deemed to be an "Associated and/or Subsidiary Company" of the Insured (xi) the 1st October 1993 (a) this Policy is renewed for a further period of 12 months in consideration of which a Renewal Premium of US$1,100,000.00 in full is payable to the Company (b) the Schedule of Underlying Insurances is cancelled and replaced by Attachment 2 hereto (c) paragraph (i) of Exclusion (K) is deemed to be deleted and replaced by the following:- "(1) to Personal Injury or Property Damage arising out of the actual alleged or threatened discharge dispersal release or escape of pollutants a) at or from premises currently owned rented or occupied by the Insured or that the Insured formerly owned rented or occupied b) at or from any site or location used by or for the Insured or others for the handling storage disposal processing or treatment of waste material c) which are at any time transported handled stored treated disposed of or processed as waste by or for the Insured or any person, or organization for whom the Insured may be legally responsible or GLD056644 0049-G LD-000056644 c d) at or from any site or location on which the Insured or any contractors or subcontractors working directly or indirectly on the Insureds behalf are performing operations. (i) to test for monitor clean up remove contain treat detoxify or neutralize the pollutants or (ii) if the pollutants are brought on or to the site 'or location by or for the Insured (2) Any loss cost or expense arising out of any governmental direction or request that the Insured test for monitor clean up remove contain treat detoxify or neutralize pollutants in respect of any claim judgement award or settlement made in any country or territory which operates under the laws of the United States of America or Canada or any order made anywhere in the world to enforce such judgement award or settlement whether in whole or part Pollutants means any solid liquid gaseous or thermal irritant or contaminant including smoke vapor soot fumes acids alkalis chemicals and waste material Waste material includes materials which are intended to be or have been recycled reconditioned or reclaimed Provided (i) however that this Exclusion does not apply to Personal Injury or Property Damage arising from discharge dispersal release or escape directly caused by hostile fire explosion vandalism and malicious mischief lightning windstorm or upset or collision of a motor vehicle (ii) that the Company shall not be liable for the first US$5,000,000 of each and every claim in respect of this extension Subject otherwise to the terms exceptions and conditions of the Polity Date:9 December 1993 Signed For and on Gerling Konzern General Insurance Company -UK Branch GLD056645 0049-GLD-000056645 cC Memorandum No 13 attaching to and forming part of Policy No 62/97411/D in the name of Hanson PLC and all Subsidiary and/or Associated Companies It is agreed that as from the 1st October 1991 Memorandum No 9 "Follow Form" is amended to read as follows:- "It is hereby noted and agreed that in respect of liability of the Insureds subsidiary companies outside of the United States of America and/or Canada coverage afforded under this policy shall follow the terms and conditions of Eagle Star Insurance Company Limited Policy No 65005634 in the name of Hanson PLC and/or Subsidiary Companies where indemnity is provided by such policy notwithstanding any other terms and conditions contained herein but subject always to Exclusion (K)" Subject otherwise to the terms exceptions and conditions of the Policy Date:ll January 1994 Gerling Konzern General Insurance Company -UK Branch GIiD056646 0049-GLD-000056646  islisHii! (( Memorandum No 14 attaching to and forming part of Policy No 62/97411/D in the name of Hanson PLC and all Subsidiary and/or Associated Companies It is agreed that (i) as from the 1st October 1993 (a) notwithstanding anything contained in paragraph (iii)(h) of Memorandum No 12 to the contrary the indemnity provided by this Policy shall apply to the following discontinued operations of Beazer East Inc in respect of the Products manufactured sold handled or distributed by the Divisions prior to their date of divestiture:- Date of Divestiture Division Name 8th July 1983 Environmental Elements 25th April 1984 Engineering Construction Division 13th September 1988 Kopvenco 16th September 1988 Keystone Environmental Resources 28th September 1988 Paint & Coatings Operations (Kopcoat) 15th October 1988 Engineering Group (Chemtech) 2nd December 1988 Meadow Steel and Ivy Steel 16th December 1988 Industrial Specialty Chemical Division (INDSPEC Chemical Corporation) 29th December 1988 Tar Division Wood Division Coke Oven and Commercial Roofings Operations (Koppers Industries Inc) 4tfa January 1989 Theim Corporation 19th January 1989 Insulation Division 14th February 1989 Wolman 27th February 1989 Polyester Resin Operation It is further noted that for the purposes of th above Divisions the Underlying Insurer is the Lexington under their Policy No 5594404 (b) Definition (D) (c) shall apply to all broadcasts or telecasts of the Insured's subsidiary Company Melody Radio Limited whether in connection with an advertisement or not during the Period of Insurance Provided that the Company shall not be liable for 10% of each and every claim under this extension Page 1 of 5 GLD056647 0049-GLD-000056647 rC (c) the following policy is incorporated into the Schedule of Underlying Insurances:- COVER INSURER TERM LIMIT OF INDEMNITY REST OF WORLD PRIMARY TOUaES Motor Insurarce Policy No 99147715 Eagle Star Insurance Company 01/10/93 - 30/09/94 1,000,000 anyone occurrence for aireide liability (ii) as from the 31st October 1993 the Limit of Indemnity in respect of the Comprehensive General & Automobile liability Pol No ILK-PC-631J743-A-93 issued by theTravellers Insurance Company as specified in the Schedule of Underlying Insurers is amended to read "$5,000,000 per occurrence and $5,000,000 in the aggregate" and the Term is amended to read "31/10/93 - 31/10/94" (iii) as from the 31st December 1993 Axelson and Axelson of Canada are no longer deemed to be a "Subsidiary and/or Associated Company" of the Insured (iv) Subject to payment of the Renewal Premium to the Company this Policy is renewed for a further Period of Insurance as stated below PERIOD OF INSURANCE: From 1 October, 1994 ) both days To 30 September, 1995 ) inclusive RENEWAL PREMIUM: US$1,100,000 in fall INSURANCE PREMIUM TAX: US$2,379.13 payable in addition to the above (iv) as from the 1st October 1994 (a) the amounts of US$10,000,000 specified in the Limit of Indemnity shall each be deemed to read "Us$5,000,000r< (b) the Schedule of Underlying Insurances is cancelled and replaced by Attachment 1 hereto (b) paragraph (i) of Exclusion (K) is deemed , to be deleted and replaced by the foilowing:- "1 to Personal Injury or Property Damage arising out of the actual alleged or threatened discharge dispersal or escape of Pollutants: A) at or from premises currently owned rented or occupied by the Insured or that the Insured formerly owned rented or occupied B) at or from any site or location used by or for the Insured or others for the handling storage disposal processing or treatment of waste material C) which are at any time transported handled stored treated disposed of or processed as waste by or for the Insured or any person or organisation for whom the Insured may be legally responsible or Pa^c 2 of 5 GLD056648 0049-GLD-000056648 iiilsl 4),>.) jsji: If? C( D) at or from any site or location on which the Insured or any contractors or subcontractors working directly or indirectly on the Insured's behalf are performing operations (I) to test for monitor clean up remove contain treat detoxify or neutralize the Pollutants or (ii) if the Pollutants are brought on or to the site or location by or for the Insured 2 any loss cost or expense arising out of any governmental directive order or request that the Insured test for monitor clean up remove contain treat detoxify or neutralize Pollutants in respect of any claim judgement award or settlement made in any country or territory which operates under the lawas of the United States of America or Canada or to any order made anywhere in the world to enforce such judgement award or settlement whether in whole or in part Pollutants means any solid liquid gaseous or thermal irritant or contaminant including smoke vapour soot fumes acids alkalis chemicals and waste material Waste material includes materials which are intended to be or have been recycled reconditioned or reclaimed Provided however that (i) this Exclusion above does not apply to 1 discharge dispersal release or escape directly caused by fire explosion lightning windstorm vandalism or malicious mischief collapse riot and civil commotion flood earthquake collision or upset of a motor vehicle mobile equipment or aircraft automatic sprinkler leakage mechanical breakdown or 2 Personal Injury or Property Damage which is within the Product Hazard or the Completed Operations Hazard (ii) will also not apply if said discharge dispersal release or escape of Pollutants was not a result of a named peril occurrence as defined in Proviso (i) 1 above and meets all the following conditions: A) it was accidental and neither expected nor intended by the Insured B) it was instantaneous and was demonstrable as having commenced at a specific time and date during the Period of Insurance C) its commencement became known to the Insured within 7 (seven) days D) its commencement was reported in writing to the company within 21 (twenty-one) days of becoming known to the Insured's Risk Manager E) reasonable effort was expended by the Insured to terminate the situation as soon as conditions permitted Nothing contained in this Proviso shall operate to provide any coverage with respect to .> of > GLD056649 0049-GLD-000056649 (" A. any site or location used by the Insured or by others on the Insured's behalf for the handling storage disposal dumping processing or treatment of waste material B any fines or penalties C any clean up costs mandated by the Superfund Program or any Federal State or Local Governmental Authority However this specific Exclusion 3 shall not serve to deny coverage for third party clean up costs otherwise covered by this Exclusion simply because of the involvement of a Governmental Authority D acid rain E clean up removal containment treatment detoxification or neutralization of Pollutants situated on premises the Insured owns rents or occupies at the time of the actual discharge dispersal seepage migration release or escape of said Pollutants F water pollution caused by oil or its derivatives In the event of a disagreement as to the interpretation of this Exclusion the disagreement shall be submitted to binding arbitration before a panel of three (3) Arbitrators within 3Q days of a written request from, for arbitration by either the Insured or the Company each party will choose an Arbitrator if the two Arbitrators are unable to agree within one month upon the third Arbitrator such Arbitrator shall at the request of either party be selected by the American Arbitration Association in accordance with its rules and procedures The parties shall submit their cases to the panel by written and oral evidence at a hearing time and place selected by the third Arbitrator The panel shall be relieved of all judicial formality shall not be obligated to adhere to the strict rules of law or of evidence shall seek to enforce the intent of the parties hereto and may refer to but are not limited to relevant legal principles The decision, of at least two (2) of the three (3) Panel members shall be binding and final and not subject to appeal except for grounds of fraud and gross misconduct by the Arbitrators The award will be issued within 30 days of the close of the hearings Each party shall bear the expenses of its designated Arbitrator and shall jointly and equally share with the other the expense of the third Arbitrator and of the Arbitration The arbitration proceedings shall take place in or in the vicinity of New York NY The procedural rules applicable to this arbitration shall except as provided otherwise herein be in accordance with the Commercial Arbitration Rules of the American Arbitration Association It is further understood and agreed the above coverage is subject to a per occurrence retention of US$5,000,000 (indemnity only) whether insured or self-insured (v) as from the 9th March 1994 various Beazer Homes Companies details of which have been lodged with the Company having been sold and no longer deemed to be Subsidiary or Associated Companies of the Insured there is a return premium of US$11,000.00 due to the Insured !*3"C 4 of 5 GLD056650 0049-GLD-000056650 ( (vi) as from the 31st August 1994 International Miniwarehouse Associates are no longer - deemed to be a Subsidiary or Associate Company of the Insured (vii) as from the 23rd September 1994 Proctor and Schwartz are no longer deemed to be a Subsidiary or Associate Company of the Insured (viii) as from the 30th September 1994 Scholes Group PLC are included within the Subsidiary and/or Associated Companies of the Insured Subject otherwise to the terms exceptions and conditions of the Policy Date: 25 April 1995 Exmd: Htv Signed For and on behalf of Gerling Konzem General Insurance Company -UK Branch I'agc s or s GLD056651 0049-GLD-000056651 ATTACHMENT 1 SCHEDULE OF UNDERLYING INSURANCES Period oflnsurance: 1st October 1994/30th September 1995 COVER INSURER TERM LIMIT OF INDEMNITY REST OF WORLD PRIMARY POLICIES Public and Products liability (including DIC/D1L for overseas territories Public and Products Liability {SCM Chemicals - Australia) Motor Insurance Pol No 99147715 100% Eagle Star Insurance Group 100% Switzerland General Insurance Company Eagle Star Insurance Company 01/10/94 - 30/09/95 1,000,000 any one occurrence, in aggregate for Products Liability 01/10/94 - 30/09/95 A$5,000,000 each occurrence and in aggregate 01/10/94 - 30/09/95 1,000,000 any one occurrence for airside liability USA/CANADA PRIMARY POLICIES I) HANSON INDUSTRIES - Domestic USA and Canada Employers Liability CIGNA Comprehensive General Liability Products/Completed Operations Automobile Liability CIGNA CIGNA CIGNA 01/10/94-01/10/95 $2,000,000 each accident $2,000,000 disease policy limit S2,000,000 disease each employee 01/10/94 - 01/10/05 $3,000,000 per occurrence indemnity only (no aggregate) 01/10/94 - 01/10/95 $5/300,000 per occurrence indemnity only (no aggregate) 01/10/94-01/10/95 $2,000,000 per occurrence CSL indemnity only II) BeazcrWest Inc Employers' Liability Pol No 04 XC 223 SCA Aetna Casualty & Surety 01/8/94-01/8/95 $1,000,000 each accident 51,000,000 disease policy limit $1,000,000 disease each employee III) FOREIGN LIABILITY Comprehensive General & Automobile Liability Pol No CXC035328 Employers Liability Pol NoTBA CIGNA CIGNA IV) PEABODY HOLDING CO Employers liability Pol No OBCO1559202 1 Old Republic a Peabody b Lee Ranch Coal 01/08/94 - 01/08/95 01/8/94 - 01/8/95 $5,000,000 per occurrence $10,000,000 aggregate $5,000,000 per accident $5,000,000 aggregate per accident $5,000,000 aggregate disease 01/10/93-01/10/95 $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee Employers Liability Pol No OBCO1550702 2 Old Republic V) TIDEWATER CONSTRUCl'lON CORPORATION Commercial General Liability Pol No Liberty Mutual RG 1-dS 1-004723-074 01/10/94-01/10/95 $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee 01/3/94-01/3/95 $2,000,000 per occurrence $100,000 deductible 62/97411/D Page I of 2 Hanson H.C GLD056652 0049-GLD-000056652 \*ri&5 ( Employers' Liability Pol Nos WC2-651004723-034/064 and WC2-651-004502134 Liberty Mutual Automobile Liability Pol NosASl-dSl004723-134/664 and AS1-651-004S02124 Liberty Mutual Owners and Contractors Liability Pol No LX1-651-004723-553 Liberty Mutual 01/3/94-01/3/95 $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee $250,000 SIR per claim 01/3/94-01/3/95 $2,000,000 per occurrence 01/3/94-01/3/95 $2,000,000 per occurrence Umbrella Liability Pot No RT1-651004723-694 Liberty Mutual 01/3/94-01/3/95 $8,000,000 per occurrence VI) RIVERSIDE CEMENT COMPANY A CALIFORNIA GENERAL PARTNERSHIP including Riverside Cement Company Partin Limestone Products Company and R1C Company (Beazer West Inc) General liability Pol No GL0658G92G Zurich American Insurance Co 01/7/94 - 01/7/95 SS,000,000 per occurrence $10,000,600 general aggregate $10,000,000 products/completed operations aggregate $5,000,001} personal and advertising injuty 550.000 T>rc damage 55.000 medical expense $250,000 loss limit Automobile Liability Pol No BAP6SS092I Excess Liability Pol No BE3088735 Zurich American Insurance Co American International Ins Co 01/7/94 - 01/7/95 01/7/94 - 01/7/95 55,000,000 combined single limit 5250.000 loss limit 510,000.000 excess primaries Excess Liability Pol No 79079904 Federal Insurance Co 01/7/94 - 01/7/95 $25,000,000 excess $10,000,000 excess primaries Excess liability Pol No HXL.F866051 and HXLCU16S3 Home Insurance Co 01/7/94 - 01/7/95 $10,000,000 excess S35.000.000 excess primaries VII) GIFFORD-HILL AMERICAN INC General Liability Pol No CRR338592 Commercial Union Insurance Co Automobile Liability Pol No NRR261G31 Excess Liability Pol N0CRDZO8O88 Commercial Union Insurance Co Pacific Employers Insurance Co Employers' Liability Pol No WA2-190089731-C13 Liberty Mutual 01/1/94 - 01/1/95 01/1/94 - 01/1/95 $1,000,000 per occurrence $2,000,000 general aggregate 52.000.000 products/completcd operations aggregate 51.000.000 personal aad advertising injury $1,000,000 combined single limit 01/1/94 - 01/1/95 01/1/94-01/1/95 $4,000,000 per occurrence $4,000,000 general aggregate $4,000,000 products/completed operations aggregate $500,000 62/97U1/D Page 2 of 2 Hanson PLC GLD056653 0049-GLD-000056653 s c h C; u l e o f UNDERLYING INSURA1V jES COVER INSURER REST OF WORLD PRIMARY POLICIES Public and Products Liability (including DIC/DIL for overseas territories) 100% Eagle Star Insurance Group Public and Products Liability (SCM Chemicals - Australia) 100% Switzeriand Genera! Insurance Company TERM LIMIT OF INDEMNITY 01/10/91 - 30/09/92 1,000,000 any one occurrence, in aggregate for Products Liability 01/10/91 - 30/09/92 AJ5.000.000 each occurrence and in aggregate USA/CANADA PRIMARY POLICIES I) HANSON INDUSTRIES AND BEAZER EAST Employers Liability National Union Comprehensive General Liability Products/Completed Operations II) FOREIGN LIABILITY Comprehensive General & Automobile liability Employees Liability National Union National Union Travelers Insurance Company Travelers Insurance Company 01/10/91-01/10/92 $2,000,000 each accident $2,000,000 disease policy limit 2,000,000 diseaseeach employee 01/10/91 01/10/92 $3,000,000 per occurrence - indemnity only (no aggregate) 01/10/91 - 01/12/92 $5,000,000 per occurrence - indemnity only (no aggregate) 01/10/91 -01/10/92 55,000,000 per occurrence SI 0,000,000 Combined single limit per aggregate 01/10/91 -01/10/92 $5,000,009per accident 55.000.000 aggregate peraccident 55.000.000 aggregate disease HI) HANSON NATURAL RESOURCES CORPORATION (CAVENHAM) Employers Liability National Union 01/06/91 - 01/01/92 $l,000,000excessofS500,000 SIR-LA $1,000,000 excess of $250,000 SIR - MS IV) PEABODY COAL Employers Liability Old Republic 01/01/91 -01/01/92 $100,000 each accident $500,000 disease policy limit $100,000 disease each employee V) INTERNATIONAL MINI WAREHOUSE ASSOCIATES Automobile Liability Hartford Insurance Company 03/01/92 - 03/01/93 ; $1,000,000 combined single limit Employers Liability Hartford Insurance Company 02/23/92 - 02/23/93 5100,000 each accident $500,000 each policy disease $100,000 each employee disease Conunerical General Liability Allas Insurance Company 01/01/92 - 01/01/93 $1,000,000 each occurrence 52,000,000 general aggregate $1,000,000 products/completed operations aggregate Commercial General Liability Allas Insurance Company 01/01/92 - 01/01/93 $1,000,000 personal and advertising injury Fire damage legal liability Water damage legal liability Umbrella Liability Chubb Insurance Group 01/02/92 - 01/02/93 - 310,000,000per occurrence SIO.OOO.OQO producls/cotnplctcd operations aggregate $10,000,000 general aggregate 62/974 U/D l>;tgc 27 of 27 Hanson l')e GLD056654 0049-GLD-000056654 bhitjlt?: (' f * SCHEDULE OF UNDERLYING INSURANCES COVER INSURER TERM LIMIT OF INDEMNITY REST OF WORLD PRIMARY POLICIES Public and Products Liability (including DrC/DfL for overseas territories Public and Products Liability (SCM Chemicals - Australia) 100% Eagle Star Insurance Group 100% Switzerland General Insurance Company 01/10/91-30/09/92 01/10/91 - 30/09/92 1,000,000 anyone occurrence, in aggregate-for Products Liability ASS,000,000 dart) occurrence and in aggregate ' USA/CANADA PRIMARY POLICIES I) HANSON INDUSTRIES Employees Liability National Union Comprehensive General Liability National Union Products/Compfetcd Operations National Union Automobile Liability National Union II) FOREIGN LIABILITY Comprehensive General & Automobile Travelers Insurance Company Liability Employers Liability Travelers Insurance Company HI) HANSON NATURAL RESOURCES CORPORATION (CAVENHAM) 01/10/91-01/10/92 $2,000,000 each accident $2,000/100 disease policy limit $2,000/100 disease each employee 01/10/91 -01/10/92 $3,000/100 per occurrence indemnity only (no aggregate) 01/30/93 -01/10/92 $5,000/100 ` per occurrence indemnity only (no aggregate) 03/10/91 -01/10/92 $2/300,000 per occurrence CSL indemnity only 01/10/?! -01/10/92 01/10/91 -01/10/92 $5,000,000 per occurrence $10,000/100 CSL per aggregate SS,000,000 per accident $5000,000 aggregate per accident $5,000,000 aggregate disease Employers Liability IV) PEABODY COAL National Union 01/06/91 - 01/01/92 $1,000,000 excess of $500,000 SIR -LA $1,000,000 excess of $250,000 SIR-MS Employers Liability Old Republic 01/01/91 - 01/01/92 $100,000 each accident $500,000 disease policy limit $100,000 disease each employee W./mu/i') Page 27 of 27 Hanson Pl.C GLD056655 0049-GLD-000056655 ATTACHMENT 1 SCHEDULE OF UNDERLYING INSURANCES Period of Insurance: 1st October 1992/30th September 1993 COVER INSURER REST OF WORLD PRIMARY POLICIES TERM LIMIT OF INDEMNITY Public and Products Liability (ineluding DIC/DIL foroverseas territories Public and Products Liability (SCM Chemicals - Australia) 100% Eagle Star Insurance Group 100% Switzerland General Insurance Company 01/10/92 - 30/09/93 0,000,000 any one occurrence, in aggregate for Products liability 01/10/92 - 30/09/93 ASS,000,000 each occurrence and in aggregate USA/CANADA PRIMARY POUCHES I) HANSON INDUSTRIES - Domestic USA and Canada Employers Liability National Union Comprehensive General liability Produas/Completsd Operations Automobile Liability National Union National Union National Union 01/10/92-01/10/93 $2,000,000 each accident $2,000,000 disease policy limit $2,000,000 disease each employee 01/10/92 - 01/10/93 $3,000/100 peroccurrence indemnity only (no aggregate) 01/10/92-01/10/93 $5,000,000 per occurrence indemnity only (no aggregate) 01/10/92-01/10/93 $2,000,000 per occurrence CSL indemnity only II) Bearer West Inc Employers' Liability Pol No 08XC210SCA Aetna Casualty & Surety General liability Pol No QL01423786 Zurich American Insurance Co Automobile liability Pol No BAP 142378S(uon Texas States) Automobile liability Pol No TAP 1423787 (Texas) IE) FOREIGN LIABILITY Comprehensive General & Automobile Liability Pol No ILK-PC-63U743-A-92 Employers Liability Poi No QJC-PC631J743_A-92 Zurich American Insurance Co Zurich American Insurance Co Travelers Insurance Company Travelers Insurance Company IV) PEABODY COAL Employers Liability Old Republic 01/10/92-01/10/93 $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee 01/10/92 -01/10/93 01/10/92-01/10/93 01/10/92-01/10/93 $10,000/100 General Aggregate $10,000,000 Products/Completed Operations Aggregate 55,000,000 Each occurrence S5.000/XK) Personal and Advertising Injuiy $50,000 Rie Damage 55,000 Medical Expenses $500,000 SIR each occurrence 55,000,000 Combined Single Limit $500,000 SIR each occurrence SSfiOOjDOO Combined Single Limit $500,000 SIR each occurrence 01/10/92-01/10/93 01/10/92-01/10/93 $5,000,000 per occurrence $10,000,000 aggregate $5,000,000 per accident $5,000,000 aggregate per accident $5,000,000 aggregate disease 01/01/92-01/01/93 $100/100 each accident $500,000 disease policy limit $100/100 disease each employee 62/97411/D Page 1 of 3 Hanson PLC GLD056656 0049-GLD-000056656 >oo. wsw** Sl|s5iiv cc V) TIDEWATER CONSTRUCTION CORPORATION Commercial General Liability Pol No Liberty Mutual RG1-651-004723-073 Employers' Liability Pol Nos WC2-551004723-033/063 and WC2-651-004502133 Liberty Mutual Automobile Liability Pol NoeAS1-6S1004723-133/663 and ASM51-004502123 Liberty Mutual Owners and Contractors liability Pol No 1XMS1-C04723-5S3 Liberty Mutual 01/10/32 - 01/10/93 01/10/92-01/10/93 52.000.000 peroccurrence 5100.000 deductible 51.000.000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee 5250.000 SIR per claim 01/10/92*01/10/93 $2/100,000 per occurrence 01/10/92-01/10/93 $2,000,000 per ocenrrenoe Umbrella LiabilityPol No RT1-651004723-693 American International Group 01/10/92-01/10/93 $8,000,000 peroccurrence VI) NORTH TEXAS CEMENT COMPANY (A 50% OWNED JOINTVENTURE OF BEAZBRWEST INC) General liability Pol No GL06821427 Zurich American Insurance Co 01/10/92-01/10/93 $3/100,000 peroccurrence 55/100,000 general aggregate $5,000,000 prcducts/compictcd operations aggregate 53/100,000 personal and advertising injury $50,00 fire damage 55,000 medical expenses Automobile LiabilityPol No TAP6S21 426 ZurichAmerican Insurance Co 01/10/92 -01/10/93 $2,000,000 combined single limit Bmpkyers' Liability Pol No WC6821423 ZurichAmerican Insurance Co 01/10/92-01/10/93 $2,000,000 VII) RIVERSIDE CEMENT COMPANY A CALIFORNIA GENERAL PARTNERSHIP General LiabilityPol No GL06S80919 Zurich American Insurance Co 01/10/92-01/10/93 Automobile Liability Pol No BAP6S80920 Excess Liability Pol No BE308873S Excess Liability Pol No 79079904 Excess Liability Pol No HXLF866051 Zurich American Insurance Co American International Ins Co Federal Insurance Co Home Insurance Co 01/10/92-01/10/93 01/10/92-01/10/93 01/10/92-01/10/93 01/10/92-01/10/93 55.000.000 per occurrence 510.000.000 general aggregate 510,000,000 products/completed operations aggregate $5,000,000 personal and advertising injury $50,000 Ore damage $5,000 medical expense $500,000 SIR each occurrence 55,000,000 combined single limit 5500,000 SIR each occurrence 510,000,000 excess primaries $25,000,000 excess $10,000,000 excess primaries $10,000,000 exeess $35,000,000 excess primaries 62/97411/D Page 2 of 3 Hanson PLC GLD056657 0049-GLD-000056657 iWHHBRfgb cc VIII) OIFFORD-HTLL AMERICAN INC General Liability Pol No CRR338S92 Commercial Union Insurance Co Automobile liability Pol No NRR261031 Excess LiabilityPol No BE3088735 Commercial Union Insurance Co Pacific Employers Insurance Co Employers' LiabilityPol No WA2-190089731-013 Liberty Mutual (K) INTERNATIONAL MINI WAREHOUSEASSOCIATES Automobile Liability Hartford Insurance Company Employers Liability Hartford Insurance Company Commercial General Liability Atlas InsuranceCompany Umbrella Liability Chubb Insurance Group 01/10/92- 01/10/93 01/10/92-Cl/10/93 $1,000/100 per occurrence 52,000,000 general aggregate $2,000,000 products/completed operations aggregate 11,000,000 personal and advertising injury $1,000,000 combined single limit 01/10/92-01/10/93 01AO/92* 01/10/93 $4,000,000 peroccurrence $4,000,000 general aggregate $4fi00fi00 products/complctcd operations aggregate $500,000 01/10/92 - 01/10/93 $1,000,000 combined single limit 01/10/92-01/10/93 $100,000 each accident $500,000 disease polity limit $100,000 each employee disease 01/01/92 - 01/10/93 $1,000/Xl0 per occurrence $2,000,000 general aggregate $1,000,000 products/complctcd operations aggregate SI,030,0(X> persona! and advertising injury fire damage legal liability water damage legal liability 01/10/92-01/10/93 $10,000,000 per occurrence $10,000,000 general aggregate $10fi00,000 products/complctcd operations aggregate 62/97411/D Page 3 of 3 Hanson PLC GLD056658 0049-GLD-000056658 ATTACHMENT 2 SCHEDULE OF UNDERLYING INSURANCES Period of Insurance: 1st October 1993/30th September 1994 COVER INSURER TRRM LIMIT OF INDEMNITY RESTOFWORLD PRIMARY POLICIES Public and Products Liability (mduding DIC/DtL for overseas territories Public end Products liability (SCM Chemicals - Australia) 100% Ea^e Star Insurance Gioup 100% Switzerland General Insurance Company 01/10/93 - 30/09/M 1,000,000 any one occurrence, in aggregate for Products liability 01/10/93-30/09/M ASS,000,000 each occurrence and in aggregate USA/CANADA PRIMARY POLICIES I) HANSON INDUSTRIES - Domestic USA and Canada Employers liability CIGNA Comprehensive General liability Products/Conjpletcd Operations Automobile Liability CIGNA CIGNA CIGNA . M/10/93-01/10/94 $2,000,000each accident $2,000,000disease policy limit $2,000,000disease each employee 01/10/93-01/10/M $3,000,000 per occurrence indemnity only (no aggregate) 01/10/93 -01/10/M $5,000,000 per occurrence indemnity only (no aggregate) 01/10/93 - 01/10/M $2,000,000 per occurrence CSL indemnity only II) Beazer West Inc Employers' liability Pol No 0SXC210SCA Aetna Casualty & Surety m) f o r e ig n LiABiury Comprehensive General & Automobile Liability Pol No LLK-PC-63U743-A-93 Employers liability Pol No ELK-PC63U743-A-93 Travelers Insurance Company Travelers Insurance Company IV) PEABODY COAL Employers Liability Old Republic V) TIDEWATER CONSTRUCTION CORPORATION Commercial General Liability Pol No Liberty Mutual RGl-651*OOd723-OT3 Employers' liability Pd Nos WC2-651004723033/063 and WC2-651-O04502133 Liberty Mutual Automobile Liability Pol Noe AS1-651004723-133/663 and AS1-6S1-004SC2123 Liberty Mutual 01/10/93-01/10/94 $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee 01/10/50-01/10/94 01/10/93-01/10/94 $5,000,000 per occurrence $10,000,000 aggregate $5,000/100 per accident $5,000,000 aggregate per accident SS,000,000 aggregate disease 01/01/93-01/01/M $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee 01AO/93- 01/10/94 01/10/93-01/10/94 $2,000,000 per occurrence $100,000 deductible $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee $250,000 SIR per claim 01/10/93-01/10/94 $2,000,000 per occurrence 62/97411/D Page 1 of 3 Hanson PLC GLD056659 0049-GLD-000056659 .. ijliiiisp c Owners and Contractors liability Pol No LX1-651-004723-553 Libert}'Mutual r 01/10/93 -01/10/94 52,000,000 peroccurrence Umbrella LiabilityPol No RT1-6S1004723493 American International Group 01/10/93-01/10/94 58,300,000 per occurrence VI) NORTH TEXAS CEMENT COMPANY (A S0% OWNED JOINTVENTURE OP BEAZER WEST INC) General Liability Poi No GL06821427 ZoricbAmerican Iasumxx Co (M/10/93 - 01/20/94 53,000,000 per occurrence $5,000,000 general aggregate $5,000,000 products/completed operations aggregate $3/100,000 personal and advertising injury $50,00 firedamage $5,000 medical expenses Automobile liability Pol No TAP6S21 426 Employers' LiabilityPol No WC6821428 ZurichAmerican Insurance Co Zurich American Insurance Co 01/10/93-01/10/94 52/100,000 combined singe limit 01/10/93-01/10/94 $2,000,000 VH) RIVERSIDE CEMENT COMPANY A CALIFORNIA GENERAL PARTNERSHIP General LiabilityPol No GLQ658Q919 Zurich American Insurance Co 01/10/93-01/10/94 Automobile Liability Pol No BAP6580920 Excess liabilityPol No BE3088735 Excess LiabilityPo! No 79079904 Excess Liability Pol No HXLF8660S1 Zurich Americaa Insurance Co American International Ins Co Federal Insurance Co Home Insurance Co 01/10/93-01/10/94 01/10/93- 01/10/94 01/10/93-01/10/94 01/10/93-01/10/94 $5,000,000 per occurrence $10,000/100 general aggregate 510.000.000 products/completed operations aggregate 55.000. 000 personal and advertising injury $50,000 fire damage $5/100 medical expense $500,000 SLR each occurrence $5/100,000 combined single limit $500,000 SIR each occurrence 510.000.000 excess primaries $25,000,000 excess 510,000,000 excess primaries 510,000,000 excess 535,000,000excess primaries VIE) GIFFORD-HHX AMERICAN INC General Liability Pol No CRR338593 Commercial Union Insurance Co Automobile Liability Pol No NRR261031 Excess liability Pol No CRDZ08088 Commercial Union Insurance Co Pacific Employers Insurance Co Employers' Liability Pol No WA2-190089731-013 Liberty Mutual 01/10/93 - 01/10/94 Cl/10/93 - 01/10/94 51,000,000 per occurrence $2,000,000 general aggregate $2,000,000 products/completed operations aggregate 51,000,000personal and advertising injury $1/100,000 combined single limit 01/10/93-01/10/94 01/10/93-01/10/94 $4,000,000 peroccurrence $4,000,000 general aggregate 54,000,000 products/completed operations aggregate 5500,000 62/97411/D Page 2 of 3 Hanson PLC GLD056660 0049-GLD-000056660 cc (DC) INTERNATIONAL MINI WAREHOUSE ASSOOATES Automobile Liability Hartford Insurance Company Employers Liability Hartford Insurance Company Commercial General liability Atlas InsunmocCoopaay Umbrella Liability Chubb Insurance Group 01/10/93 - 01/10/94 $1,000,000 combined single limit 01/10/93.01/10/94 $100,000 each accident $500,000 disease policy limit S100.00CTeach employee disease 01/10/93-01/10/9* $1,000,000 per occurrence $2/100,000 general aggregate $1,000,000 products/completed operations aggregate $1,000,000 personal aad advertising injury fire damage legal liability waterdamage legal liability Cl/10/93-01/10/94 $5,000,000 per occurrence SS,000,000 aggregate k >* 62/97411/D Page 3 of 3 Hanson PLC GLD056661 0049-GLD-000056661 Memorandum No 15 attaching to and forming part of Policy No 62/97411/D in the name of Hanson PLC and all Subsidiary and/or Associated Companies It is agreed that as from the 1 st October 1994 this Policy is amended to include coverage as follows:- The Company shall only be required to pay on behalf ofthe Insured sums which the Insured becomes obligated to pay for the require removal or repair of any Product of the Insured including concrete cement sand or aggregate concrete blocks concrete products or other products manufactured sold handled or distributed by or on behalfofdie Insured which is determined to be defective This coverage shall be limited to:- A The lesser of: 1 the Insured's actual cost or removing or replacing any of the above items but specifically excluding die original cost of such goods or products 2 the Insured's actual cost of remedial action taken to avoid removal or replacement of such products B Damage to property of others including loss of use thereof and/or consequential Business Interruption resulting from necessary removal replacement or remedial action as provided in A above Items A and B above shall not be covered unless the occurrence causing the above arose out of an error in design prescription manufacture blending mixing or compounding of such products and the repair replacement or removal is necessary because such products is defective and has been rejected by the owner his authorised representative municipality or other authority having jurisdiction Defective shall mean the Insured's products which upon testing by an accredited independent testing agency do not meet the-contractual specifications or accepted standards required for the specific construction in which such materials were incorporated Ifthe above coverage is provided in the Policy we shall be excess Ifthe coverage is provided in the primary policy we shall be excess of a Self-Insured Retention of US$1,000,000 each and every occurrence Nil aggregate excluding expenses This Self-Insured Retention shall be composed of indemnity payments only and is not to be eroded by defence costs All other terms and conditions ofthis policy remains unchanged It is fiirther agreed that the deductible in respect ofthe above Rip and Tear coverage is US$5,000,000 Subject otherwise to the terms exceptions and conditions ofthe Policy Date: 18 August 1995 Exmd: Signed For and on behalfof Gerling Konzern General Insurance Company -UK Branch GLD056662 0049-GLD-000056662 HRR * C (' ATTACHMENT 1 SCHEDULE OF UNDERLYING INSURANCES Period of Insurance: 1st October 1994/30th September 1995 COVER INSURER TERM L REST OF WORLD PRIMARY POLICIES Public and Products Liability (including DIC/DIL for overseas territories Public and Products Liability (SCM Chemicals - Australia) Motor insurance Pol No 99I477I5 100% Eagle Star insurance Group 100% Switzerland General Insurance Company Eagle Star Insurance Company 01/10/94 - 30/09/95 01/10/94-30/09/95 01/10/94-30/09)95 t,000,000 any one occurrence, in aggregate for Products Liability AS5O0,OOO each occurrence and in aggregate 1,000,000 any one occurrence for airside liability USA/CANADA PRIMARY POLICIES I) HANSON INDUSTRIES Domestic USA and Canada Employers Liability CIGNA Comprehensive Genera! Liability Products/Completed Operations Automobile Liabiliiy CIGNA CIGNA CIGNA 01/10/94-01/10/95 01/10/94-01/10/95 01/10/94 - 01/10/93 01/10/94-01/10/95 S2.000.000 each accident 2,000,000 diseasepolicy limit $2,000,000 disease each employee $3,000,000 per occurrence indemnity only (no aggregate) $5,000,000 per occurrence indemnity only (no aggregate) 52,000,000 per occurrence CSL indemnity only EC) BeazerWest Inc Employers' Liability Pol No 04 XC 223 SCA Aetna Casualty & Surety ID) FOREIGN LIABILITY Comprehensive General & Automobile Liability Pol No CXC035328 Employers Liability Pol No TBA CIGNA CIGNA IV) PEABODY HOLDING CO Employers Liability Pol No OBCO1559202 1 Old Republic a Peabody b Lee Ranch Coal Employers Liability Pol No OBCO1550702 2 Old Republic V) TIDEWATER CONSTRUCTION CORPORATION Commercial General Liability Pol No Liberty Mutual RG1-651-004723-074 Employers' Liability Pol Nos WC2-651004723-034/064 and WC2-651-004502134 Liberty Mutual 01/8/94-01/8/95 $1,000,000 each accident $1,000,000 disease policy limit $1,000,000disease each employee 01/10/94-0I/I0/9S 01/8/94-01/8/95 $5,000,000 per occurrence $10,000,000 aggregate 55,000,000 per accident $5,000,000 aggregate peraccident $5,000,000 aggregate disease 01/10/93-01/10/95 $1,000,000 each accident $1,000,000 disease policy limit $1,000,000disease each employee 01/10/94-01/10/95 $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee 01/3/94-01/3/95 01/3/94-01/3/95 52,000,000 per occurrence 5100,000 deductible $1,000,000 each accident $1,000,000 disease policy limit 51,000,000 disease each employee $250,000 SIR per claim 62/97411/D Page 1 of2 Hanson PLC GLD056663 0049-GLD-000056663 Employer^ LiabilityPol Nos WC2-651 004723-034/064 and WC2-651-004502134 Liberty Mutual Automobile Liability Pol Nos AS1-651004723-134/664 and ASt-651-004502124 Liberty Mutual Owners and Contractors Liability Pol No LX1-651-004723-S54 Liberty Mutual Umbrella Liability Pol No RTI-6S1004723-694 Liberty Mutual VI) GIFFORD-EOLL AMERICAN, INC General Liability Pol No CRR338592 Commercial Union Insurance Co Automobile Liability Pol NoNRR26103t Excess Liability Pol No CRDZ08088 Commercial Union Insurance Co Pacific Employers Insurance Co Employers' Liability Pol No WA2-190089731-013 Liberty Mutual 01/3/94 - 01/3/95 01/3/94-01/3/95 $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee $250,000 SIR per claim $2,000,000 per occurrence 01/3/94 - 01/3/95 * $2,000,000 per occurrence 01/3/94-01/3/95 $8,000,000 per occurrence 01/1/94-01/1/95 01/1/94 -01/1/95 01/1/94-01/1/95 01/1/94-01/1/95 $1,000,000 per occurrence $2,000,000 general aggregate $2,000,000 products/corapleted operations aggregate $1,000,000 personal and advertising injury $1,000,000 combined single limit $4,000,000 per occurrence $4,000,000 genera] aggregate $4,000,000 products/completed operations aggregate $500,000 62/974 M/D Page 2 of2 Hanson PLC GLD056664 0049-GLD-000056664 Memorandum No IS attaching to and forming part of Policy No 62/974U/D in the name of Hanson PLC and all Subsidiary and/or Associated Companies It is agreed that as from the 1st October 1994 this Policy is amended to include coverage as follows:- The Company shall only be required to pay on behalfof the Insured sums which the Insured becomes obligated to pay for the require removal or repair of any Product of the Insured including concrete cement sand or aggregate concrete blocks concrete products or other products manufactured sold handled or distributed by or on behalfof the Insured which is determined to be defective This coverage shall be limited to:- A The lesser of: 1 the Insured's actual cost or removing or replacing any of the above items but specifically excluding the original cost of such goods or products 2 the Insured's actual cost of remedial action taken to avoid removal or replacement of such products 8 Damage to property of others including loss of use thereof and/or consequential Business Interruption resulting from necessary removal replacement or remedial action as provided in A above Items A and B above shall not be covered unless the occurrence causing the above arose out of an error in design prescription manufacture blending mixing or compounding of such products and the repair replacement or removal is necessary because such products is defective and has been rejected by the owner his authorised representative municipality or other authority havingjurisdiction Defective shall mean the Insured's products,which upon testing by an accredited independent testing agency do not meet the contractual specifications or accepted standards required for the specific construction in which such materials were incorporated Ifthe above coverage is provided in die Policy we shall be excess If the coverage is provided in the primary policy we shall be excess of a Self-Insured Retention of USS1,000,000 each and every occurrence Nil aggregate excluding expenses This Self-Insured Retention shall be composed of indemnity payments only and is not to be eroded by defence costs All other terms and conditions of this policy remains unchanged It is further agreed that the deductible in respect ofthe above Rip and Tear coverage is US$5,000,000 Subject otherwise to the terms exceptions and conditions ofthe Policy SEP I * n Date: 18 August 1995 Exmd: Signed For and on behalf of Gerling Konzern General Insurance Company -UK Branch 6LD056665 0049-GLD-000056665 ,, 'i**** restrain ATTACHMENT 1 SCHEDULE OF UNDERLYING INSURANCES Period of Insurance: 1st October 1994/30th September 1995 COYER INSURER REST OF WORLD PRIMARY POLICIES TERM LIMIT OF TNDFMNTTV Public and Products Liability (including DIC/DIL foroverseas territories Public and Products Liability (SCM Chemicals Australia) Motor Insurance Pol No 99147715 100% Eagle Star Insurance Group 100% Switzerland General Insurance Company Eagle Star Insurance Company USA/CANADA PRIMARY POLICIES I) HANSON INDUSTRIES Domestic USA aid Canada Employers Liability * CIGNA Comprehensive General Liability Products/Completed Operations Automobile Liability CIGNA CIGNA CIGNA 01/10/94 - 30/09/95 01/10/94-30/09/95 01/10/94 - 30/09/95 1,000,000 any one occurrence, in aggregate for Products Liability ASS,000,000 each occurrence and in aggregate 1,000,000 any one occurrence for aitside liability 01/10/94- 01/10/95 01/10/94- 01/10/95 01/10/94 - 01/10/95 01/10/94-01/10/95 $2,000,000 each accident 52.000.000 disease policy limit $2,000,000 disease each employee 53.000.000 peroccurrenceindemnity only (no aggregate) 55,000,000 peroccurrence indemnity only (no aggregate) $2,000,000 per occurrence CSL indemnity only ID Beazer West Inc Employers' Liability Pol No 04 XC 223 SCA Aetna Casualty & Surety 01/8/94 - 01/8/95 51,000,000 each accident 51,000,000 disease policy limit $1,000,000 disease each employee III) FOREIGN LIABILITY Comprehensive General & Automobile Liability Pol No CXCQ35328 Employers Liability Pol No TBA CIGNA CIGNA IV) PEABODY HOLDING CO Employers Liability Pol No OBCOI559202 I Old Republic a Peabody b Lee Ranch Coal n/01/10/94 01/10/95 01/8/94 - 01/8/95 $5,000,000 per occurrence 510.000.000 aggregate $5,000,000 per accident $5,000,000 aggregate peraccident 55.000.000 aggregate disease 01/10/93 - 01/10/95 51,000,000 each accident $1,000,000 disease policy limit 51.000,000 disease each employee Employers Liability Pol No OBCO1550702 2 Old Republic V) TIDEWATER CONSTRUCTION CORPORATION Commercial General Liability Pol No Liberty Mutual RG1 -651 -0047234574 Employers' Liability Pol Nos WC2-651004723-034/064 and WC2-6SI-004S02134 Liberty Mutual 01/10/94 - 01/10/95 51,000,000 each accident St,000,000 disease policy limit 51,000,000 disease each employee 01/3/94 - 01/3/95 01/3/94 - 01/3/95 $2,000,000 peroccurrence 5100,000 deductible 51,000,000 each accident 51,000,000 disease policy limit 51,000,000 disease each employee $250,000 SIR per claim GLD056666 0049-GLD-000056666 Employers' Liability Pol Nos WC2-65I004723-034/064 and WC2>651-004502134 Liberty Mutual Automobile Liability Pol Nos ASl-65 l004723-134/664 and ASl-651-004502124 Liberty Mutual O&ners and Contractors Liability Pol No 1/tXl -651-004723-554 Liberty Mutual Umbrella Liability Pol No RT1-6SI004723-694 Liberty Mutual / V!) GIFFORD-HILL AMERICAN,*WC General Liability Pol No CRR338592 Commercial Union Insurance Co Automobile Liability Pol NoNRR26103I Excess Liability Pol No CRDZ08088 Commercial Union Insurance Co Pacific Employers Insurance Co Employers' Liability Pol No WA2-I90039735-013 Liberty Mutual 01/3/94-01/3/95 01/3/94-01/3/95 $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee $250,000 SIR per claim $2,000,000 per occurrence 01/3/94-01/3/95 $2,000,000 per occurrence 01/3/94-01/3/95 $8,000,000 per occurrence Ol/t/94- 01/1/95 01/1/94-01/1/95 01/1/94-05/1/95 01/1/94-01/1/95 $1,000,000 per recurrence 52,000,000 general aggregate $2,000,000 products/ccmplered operations aggregate $1,000,000 personal and advertising injury 51,000,000 combined single limit $4,000,000per occurrence 54,000,000 general aggregate 54.000,000 products/completed operations aggregate $500,000 GLD056667 0049-GLD-000056667 Cmptoyets' Liability Pol Nos WC2-651004723-034/064 and WC2-6S1-004502- 134 Liberty Mutual Automobile Liability Pol Nos AS1-651004723-134/664 and AS1-651-004502124 liberty Mutual Owners and Contractors Liability Pol No LX1-6S1-004723-553 ' -1 Umbrella Liability Po! No RT1-651004723-694 Liberty Mutual Liberty Mutual 01/3/94-01/3/95 51.000.000 each accident 51.000.000 disease policy limit 51.000.000 disease each employee 5250X00 SIR perclaim 01/3/94-01/3/95 $2,000,000 per occurrence 01/3/94-01/3/95 52X00.000 per occurrence 01/3/94-01/3/95 $8,000,000 per occurrence VI} RIVERSIDE CEMENT COMPANY a CALIFORNIA GENERAL PARTNERSHIP including Riverside Cement Company Partin limestone Products Company and RIC Company (Beaaer West Inc) General Liability Pol No GL06580920 Zurich American Insurance Co 01/7/94-01/7/95 55.000.000 per occurrence 510X00,000 general aggregate 510X00,000 products/compieted operations aggregate 55.000.000 personal and advertising injury $50X00 fire damage 55,000 medical expense 5250X00 too limit Automobile Liability Pol No BAP6S80921 Excess Liability Pol No BE308S735 Zurich American Insurance Co American International Ins Co 01/7/94-01/7/95 01/7/94-01/7/95 55,000,000 combined tingle limit $250,000 lots limit 510X00,000 excess primaries Excess liability Pol No 790799W Federal Insurance Co 01/7/94 -01/7/9S 525X00.000 excess $10,000X00 excess primaries Excess Liability Pol No HXLF866051 and HXLC111683 Home Insurance Co 01/7/94-01/7/95 510X00.000 excess $35,000X00 excess primaries VII) GLFFORD-HILL AMERICANJNC General Liability Pol No CRR338sW- Commercial Union Insurance Co Automobile Liability Pol No NRR261Q31 Exccst Liability Pol No CRDZ08088 Commercial Union Insurance Co Pacific Employers Insurance Go Employers' Liability Pol No WA2-I90089731-013 Liberty Mutual 01/1/94-01/1/95 01/1/94-01/1/95 81,000,000 per occurrence $2X00X00 general aggregate $2,000,000 products/compieted operations aggregate $1,000,000 personal and advertising injury 51X00.000 combined single limit 01/1/94-01/1/95 01/1/94-01/1/95 54,000,000 per occurrence $4,000,000 general aggregate $4,000,000 products/compieted operations aggregate 5500,000 GLD0566S8 0049-GLD-000056668