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UMBRELLA LIAB MILLENNIUM 62/901203D, 460/
0049-GLD-000052853
GERLING
GLD052854
0049-GLD-000052854
Bowring Marsh & McLennan Limited The Bowrthg Building TowerWace London ECSPJBE United Kingdom Telephone 0171 3S71000
BINDER___________________________________________ CONFIRMATION
___
BOWRING
Mr. Donald L. Schoenewolf Director of Risk Management Millennium Chemicals Inc. 99 Wood Avenue. South,
Iselin, New Jersey 08830 U.SA.
Date
_______ October 1,1997
Page 1 of 2
No. 000004
Insured
Millennium Chemicals Inc. & Millennium America Inc. and all Subsidiary and/or Associated Companies.
Insured by
Amount |
Rate of Premium
1 Effective | Expiring
Gerting Konzern General Insurance Company 50 Fenchurch Street London EC3M3JY United Kingdom
10/1/98________ 10/1/97 Effective 10/1/97 coverage is extended to 11.59 pm on 12/31/97.
Cnverane :
Legal liability of the Insured more fully defined In the policy policy wording arising in connection with the business
Accepted by Date Policy Number.
Limit of Liability :
$25,000,000 any one accident, but US$31,250,000 in the aggregate for
Products Liability
in excess of
$75,000,000 any one accident, but US$93,750,000 in the aggregate for
Products Liability
in excess of
6Q/qrc>i2Q3Jn
underlying primary policy limits
Conditions:
As per the policy including but not limited to: 1) In respect of USA/Canada cover will include :
a) Legal costs included in the limit b) Time element pollution exclusion
- wording as agreed c) Asbestos exclusion
2) In respect of the United Kingdom/Rest of World Operations following the terms and conditions of the primary policy issued by Eagle Star.
Cover will be subject to NMA1685 (Sudden and Accidental pollution limitation)
We have signed binder effecting die foregoing. Please notify the undersigned immediately of changes, if any, you
wish to make In the above arrangements; otherwise, completing documents or premium statement will be
prepared and sentto you.____________________________ '.
; .... ..................
By: Declan Durkan
Unit - Programme Design & Marketing Team
BinderWK 3
U/CSTI/hanson/renewal/quote/Milb'n 97
GLD052855
0049-GLD-000052855
BINDER CONFIRMATION
Bowriog Marsh A McLennan Limited The Bowring Building Tower Place London ECJP3BE l/ntted Kingdom Telephone M7I 357 1000
BOWRING
Mr. Donald l. Schoenewoif Director of Risk Management Millennium Chemicals Inc. 99 Wood Avenue. South,
Iselin, New Jersey 08830 USA
Data
_______ October 1, 1997
Page 2 of 2
No. 000004
Insured
Millennium Chemicals Inc 8 Millennium America Inc. and all Subsidiary and/or Associated Companies.
Insured by
Geriing Konzem General Insurance Company 50 Fenchurch Street London EC3M 3JY
United Kingdom.
Amount
Accepted bv l Date
tMV&Aiy
| Rate of Premium | Effective | Expiring
10/1/96
10/1/97
3) Cover worldwide will include/be subject to the following: a) Full contractual liability b) Cross liabilities c) Advertising Liability
d) Property damage definition to include loss of use of tangible property
e) Tobacco health risk exclusion I) Policy silent in respect of punitive and exemplary damages g) Aircraft products and grounding exclusion h) Wrongful termination and discrimination exclusion i) Marine liabilities exclusion j) Policy Is silent in respect of subsidence k) Excluding financial loss arising from Products Hazard
hZtlQQQ&Q,Policy Number.
Geographical Limits:
Worldwide
Additional Premium:
$12,350
Co-insurers:
Geriing Konzem
Royal Global Zurich Frankona UAP Commercial Union AXA Global Sampo
20.00%
20.00% 15.00% 8.00% 8.00% 8.00% 20.00% 15.00%
Total
114.00%
Subject to all terms, exceptions and conditions of the policy
We have signed binder effecting the foregoing. Ploase notify the undersigned immediately of changes, if any, you
wish to make in the above arrangements; otherwise, completing documents or premium statement will be
prepared and sent to you.______________________________ .........
;
By: Declan Durkan
Unit: Programme Design & Marketing Team
Binder WK 3
U/CSTt/hanson/renewal/quote/Milbin 97
GLD052856
0049-GLD-000052856
!
Manager:
Gerling Insurance Service Company Ltd
GERLING-KONZERN GENERAL INSURANCE COMPANY
UK BRANCH
50 Fenchurch Street London EC3M3JY Tel: 0171 696 8099 Fax:0171 696 8119
EXCESS UMBRELLA LIABILITY INSURANCE
The Gerling Konzern General Insurance Company UK Branch (hereinafter called "the Company") in consideration of the payment of premium by the Insured and subject to all terms and any Memoranda endorsed hereon will indemnify the Insured as provided herein
The Company hereby agrees subject to the terms hereinafter mentioned to indemnify the Insured for all sums which the Insured shall be legally obligated to pay as damages on account of:
i) personal injuries
ii) property damage
iii) advertising liability
occurring during the Period of Insurance in connection with the Business all as more fully described in the Primary Umbrella Policy stated in Item 2 of the Schedule and issued by the Insurers as specified thereunder (hereinafter called the "Primary Umbrella Insurers")
PROVIDED ALWAYS THAT no liability shall attach to the Company hereunder unless and until the Primary and/or Underlying Excess Umbrella Insurers have paid or have been held liable to pay the full amount of their respective ultimate net loss liability as stated in Items 3 and 4 of the Schedule and the Company shall then be liable to pay only the excess thereof up to but not exceeding the amounts stated in Items 5 and 6 of the Schedule
Date 24 October 1997
Signeu For and on behalf of the Gerling Konzern 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
62/901203/D
Page I of5
GLD052857
0049-GLD-000052857
SCHEDULE
Policy No:
62/901203/D
Item 1 The Insured:
Millennium Chemicals Inc and Millennium America Inc and all Subsidiary and Associated Companies
Address:
99 Wood Avenue South IselinNew Jersey 08830 USA
The Business:
As stated in the Primary Umbrella Policy
Broker: Item 2 a) Primary Umbrella Policy:
Bowring Marsh & McLennan Ltd 62/901152/D
b) Primary Umbrella Insurers:
Item 3 Primary and Underlying Excess Umbrella Limits:
Gerling Konzem General Insurance Company - UK Branch
US$75,000,000 any one occurrence
Item 4 Primary and Underlying Excess Umbrella Aggregate Limits:
US$75,000,000 for any one Period of Insurance in respect of liability arising from the Products Hazard and Completed Operations Hazard and any other aggregate limit contained in the Primary or any Underlying Excess Umbrella Policy
Item 5 Limits of Liability:
US$25,000,000 any one occurrence
Item 6 Aggregate Limit of Liability:
US$25,000,000 for any one Period of Insurance in respect of liability arising from the Products Hazard and Completed Operations Hazard and any other aggregate limit contained in the Primary or any Underlying Excess Umbrella Policy
Item 7 Period of Insurance
(a) From: 1st October 1996 ) both days To: 30th September 1997 ) inclusive
(b) any subsequent period for which the Company shall have agreed to renew this Policy
Item 8 First Premium:
US$25,927.41 part of US$49,600.00
Renewal Premium:
To be agreed
Percentage applicable to Condition No 10
52.273
Memoranda applicable at inception:
Examined:
62/901203/D
Page 2 of 5
Millennium Chemicals Inc
GLD052858
0049-GLD-000052858
CONDITIONS
1 ULTIMATE NET LOSS LIABILITY
The term "ultimate net loss" shall be understood to mean the sum actually paid in cash in the settlement of losses, for which the Insured are liable after making proper deductions for all recoveries salvages and other insurances (other than the Primary and/or Underlying Excess Umbrella Insurance) whether recovered or not and shall exclude all costs and expenses unless stated to be included in the Primary Umbrella Policy
2 PRIOR INSURANCE AND NON CUMULATION OF LIABILITY
It is agreed that if any loss covered hereunder is also covered in whole or in part under any other excess policy issued to the Insured prior to the inception date hereof the limit of liability hereon as stated in Items 5 and 6 of the Schedule shall be reduced by any amounts due to the Insured on account of such loss under such prior insurance
3 MAINTENANCE OF UNDERLYING UMBRELLA INSURANCE
This Policy is subject to the same terms (except as regards the premium the amount and limits of liability' and except as otherwise provided herein) as are contained in or as may be added to the Primary Umbrella Policy stated in Item 2 of the Schedule prior to the happening of an occurrence for which claim is made hereunder Should however any alteration be made in the premium for the Primary Umbrella Policy during the currency of this Policy the Company reserves the right to adjust the premium hereon accordingly
It is a condition of this Policy that the Primary Umbrella Policy shall be maintained in full effect during the Policy Period without reduction of coverage or limit except for any reduction of the aggregate limits contained therein solely by payment of claims in respect of accidents and/or occurrences during the period of this Policy
4 ADJUSTMENT
If the premium has been calculated on estimates supplied by the Insured the Insured shall as soon as practicable after expiry of each Period of Insurance supply the Company with particulars necessary for assessment of premium and should these particulars differ from the estimates upon which premium has been paid the difference in premium shall be met by a further proportionate payment or refund as the case may be subject to any minimum premium hereon
5 NOTICE OF OCCURRENCE
Whenever the Insured has information from which the Insured may reasonably conclude that an occurrence covered hereunder involves 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 as soon as is practicable provided however that failure to give notice of any occurrence which at the time of its happening did not appear to involve this Policy but which at a later date would appear to give rise to claims hereunder shall not prejudice such claims
62/901203/D
Page 3 of5
Millennium Chemicals Inc
GLD052859
0049-GLD-000052859
6 STEPDOWN
In the event of the reduction or exhaustion of any aggregate limit contained in the Primary and/or Underlying Excess Umbrella Insurance by reason of claims paid thereunder this Policy subject to its terms shall in respect of the affected coverage operate directly in excess of the reduced excess any one loss limit and in respect of exhaustion of such limit shall continue in force and operate as the Primary Insurance
7 COSTS
If the Insurers of the Primary Umbrella Policy and any Underlying Excess Umbrella Insurance have invoked a right to pay the Limit of Liability thereunder and only be liable for costs and expenses for which they are responsible up to the time of such payment then the Company shall be liable for any further costs and expenses for which they may agree to provide indemnity with their written consent
8 CANCELLATION
This Policy may be cancelled by the Insured or by the Company or their representatives by sending by registered mail notice to the other party stating when, not less than thirty (30) days thereafter, cancellation shall be effective The mailing of notice as aforesaid by the Company or their representatives to the Insureds last known address shall be sufficient proof of notice and the insurance under this Policy shall end on the effective date and hour of cancellation stated in the notice Delivery of such written notice either by the Insured or by the Company or their representatives shall be equivalent to mailing
If this Policy shall be cancelled by the Insured the Company shall retain the customary short rate proportion of the premium for the period this Policy has been in force If this Policy shall be cancelled by the Company the Company shall retain the pro rata proportion of the premium for the period the Policy has been in force Notice of cancellation by the Company shall be effective even though the Company makes no payment or tender of return premium with such notice
9 OTHER INSURANCE
If other valid and collectable insurance with any other insurer is available to the Insured covering a loss also covered by this Policy other than insurance that is specifically stated to be excess of this Policy the insurance afforded by this Policy shall be in excess of and shall not contribute with such other insurance Nothing herein shall be construed to make this Policy subject to the terms of such other insurance
10 PROPORTION
The liability of the Company under this Policy is limited to the percentage specified in the Schedule of
(i) the Limits specified in Items 5 and 6 ofthe Schedule and
(ii) associated costs as more fully defined herein
62/901203/D
Page 4 of S
Millennium Chemicals Inc
GLD052860
0049-GLD-000052860
Memoranda attaching to and forming part of Policy No 62/901203/D in the name of Millennium Chemicals Inc and Millennium America Inc and all Subsidiary and Associated Companies
1 INSURERS
Any reference in this Policy to the "Geriing Konzem General Insurance Co - UK Branch" or to "the Company" shall be deemed to refer to the undermentioned Insurers for their respective rights interests and liabilities each for its own proportion of the risk as shown and not one for another
The Leading Office has been duly authorised by such Insurers to sign this Policy on their behalf
Insurers
Proportion
Geriing Konzem General Ins Co - UK
Branch (Leading Office)
18.182%
Commercial Union Assurance pic
7.273%
Zurich International (UK) Ltd
13.636%
Sampo Industrial Insurance NV
13.636%
Reference
62/901203/D 10T9254961901 16/509 67815 301075196
52.727%
Subject otherwise to the terms Exceptions and Conditions of the Policy
Date 24 October 1997
Signed For and on behalf of the Geriing Konzern General Insurance Company - UK Branch
62/901203/D
Page 5 of 5
Millennium Chemicals Inc
GLD052861
0049-GLD-000052861
Memorandum No 2 attaching to and forming part of Policy No 62/901203/D in the name of Millennium Chemicals Inc and Others
It is agreed that (i) as from the 12th October 1996 Endicott Johnson Retail Corporation along with its related
entities having been sold by the Insured is no longer a Subsidiary Company of the Insured (ii) the Period of Insurance is extended to expire at 23.59 hours on the 31st December 1997 to
become renewable at 23.59 hours on the 31st December 1997 and annually thereafter in consideration of which there is an additional premium of US$6,455.72 part of US$12,350.00 due to the Company (iii) during the Period from the 1st October 1996 to 23.59 hours on the 31st December 1997 (a) the amount of US$25,000,000 contained in Item 6 of the Schedule is increased to
US$31,250,000 (b) the amount of US$75,000,000 contained in Item 4 of the Schedule is increased to
US$93,750,000
Subject otherwise to the terms exceptions and conditions of the Policy
Date: 24 October 1997 F.xmd: ^
For and on behalf of Gerling Konzern General Insurance Company -UK Branch
GLD052862
0049-GLD-000052862
Lir ma Po l ic y
In Consideration of the Insured named in the Schedule hereto having paid the premium stated in the said Schedule to the Insurers named herein who have hereunto subscribed their names ("the Insurers")
The Insurers hereby severally agree each for the proportion set against its own name to indemnify the Insured or the Insured's Executors and Administrators against loss, damage or liability to the extent and in the manner set forth herein. Provided that the aggregate liability of the Insurers shall not exceed the Sum Insured or other limits as are set forth in the Schedule.
If the Insured shall make any claim knowing the same to be false or fraudulent, as regards amount or otherwise, this Policy shall become void and all claims hereunder shall be forfeited.
In witness whereof the Director of Policy Signing Services of Lo n d o n In s u r an c e an d Rein s u r an c e Mar k et As s o c iat io n ("LIRMA") has subscribed his name on behalf of each of the LIRMA Companies and (where the Companies Collective Signing Agreement C'CCSA") is being implemented) on behalf of the Leading CCSA Company which is a LIRMA member and authorised to sign this Policy (either itself or by delegation to LIRMA) on behalfof all the other CCSA Companies.
Signed: Director ofPolicy Signing Services
Date as in the Schedule.
U'\C3Tl\MHJXHEM\POLrCY\XSPPLVC14SAM
6X.D052863
0049-GLD-000052863
Th e Sc h e d u l e
Date 10th December 1997 Policy No 460/013103/01.
The Insured
Millennium Chemicals Incorporated and Millennium America Incorporated and all Subsidiaries and/or Associated Companies
Premium Sum Insured The Interest Insured
Insured Perils
US$23,447.41 part of US$49,600.00 in full
HEREON: 47.273% part of 100% ofthe following limits
US$25,000,000 any one occurrence, but in the aggregate in respect of products liability
In excess of underlying policies
To indemnify the Insured for all sums which the Insured shall become legally liable to pay as damages or compensation consequent upon:
Personal Injury Property Damage Advertising Injury
arising out of an occurrence dining the period in connection with the business
Umbrella Liability
Period of Insurance
From 1st October 1996
To 1st October 1997
both days inclusive and for such further period or periods as may be mutually agreed.
U:\CST1\MILLCHEM\P0LICY\XSPPL\CI4.SAM
GX.D052864
0049-GLD-000052864
Co in s u r an c e Cl a u s e
It is warranted that this Policy shall run concurrently with and be subject to the same terms, provisions, and limitations as are contained in Policy No. 62/901203/D issued by Gerling-Konzem General Insurance Company UK Branch covering the identical subject matter and risk.
SEVERAL LIABILITY NOTICE
The subscribing insurers' obligations under contracts of insurance to which they subscribe are several and not joint and are limited solely to the extent of their individual subscriptions. The subscribing insurers are not responsible for the subscription of any co-subscribing insurer who for any reason does not satisfy all or part of its obligations.
LSW 1001 (Insurance)
U:>CST1VMlLLCHEMlPQLICYlXSPPLVri4.SAM
GLD052865
0049-GLD-000052865
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GLD052866
0049-GLD-000052866