Document gab5mrGq6a8m4bVD9vJK8DDBQ

marsh & Mclennan N ___ ________________________ ~)------------------------------------------------n CONFIRMATION OF INSURANCE .. This is to confirm that we have effected the following insurance for: INSURED: The Dow Chemical Company Midland, MI 48674 5697 Marsh & McLennan, Incorporated One Woodward Ave., Detroit, Michigan 48226 (313) 962-0034 Date November 26, 1986 COVERING: Umbrella Excess Liability -- Occurrence Form AMOUNT OR limit OF liability: $5,000,000 Combined Single Limit per Occurrence Subject to a $10,000,000 Policy Aggregate Limit PERIOD OF INSURANCE: l2:00 Noon EZIl2:01 A.M. December 1, 1986 to December 1, 1987 PREMIUM: $6,300,000 Flat Charge INSURED WITH: National Indemnity Company POLICY NUMBER: gL 50522 PARTICIPATION 100% Subject to terms and conditions of the policy issued by the insurance carrier. This document is intended for use as evidence that insurance described above has been effected, against which underwriters certificate or policy will be duly issued. Immediate advice must be given of any discrepancies, inaccuracies or necessary changes. FORM 30 (Rev 12/79) INSURED COPY ennan DO 124ZtAI CONFIDENTIAL F 191963 NATIONAL INDEMNITY COMPANY a stock insurance company 3024 Harney Street Omaha, Nebraska 68131 EXCESS LIABILITY POLICY WITH AGGREGATE POLICY LIMIT INCLUSIVE OF CLAIMS EXPENSES POLICY NUMBER EL 50522 Policy Inception Date: December 1,1986 ONE WOODWARD AVENUE, SUITE 1200 DETROIT, MICHIGAN 48226-3493 TELEPHONE 313 965-5400 Marsh &__________ _______ Mciennari Manuscript Policy Form DO 124027 CONFIDENT TAI. F 191964 National Indemnity Company Policy No. EL 50522 THE AGGREGATE LIMIT OF LIABILITY AVAILABLE TO PAY JUDGMENTS OR SETTLEMENTS SHALL BE REDUCED BY AMOUNTS INCURRED FOR CLAIMS EXPENSES NAMED INSURED DECLARATIONS THE DOW CHEMICAL COMPANY ("Dow Chemical") AND DOW CORNING CORPORATION ("Dow Corning") and any domestic corporation or company in which either or both owns or may own directly or indirectly fifty percent (50%) or more of the combined voting power and any foreign corporation or company in which either or both owns or may own directly or indirectly more than fifty percent (50%) of the combined voting power. Subsidiary companies and corporations, owned by subsidiary companies and corporations of the Named Insured, are included as Insureds if the percentage of ownership is in accordance with the above, with the following two exceptions: DOWELL SCHLUMBERGER INCORPORATED is fifty percent (50%) owned by Dow Chemical and is excluded from coverage. AL MIYAH CHEMICALS LTD. is forty-nine percent (49%) owned by Dow Chemical and is included for coverage. Brazil "limitada" companies (meaning limited partnership) shall be considered as meaning "corporations" as used in the Named Insured clause. Mailing Address for all Insureds: 2030 Dow Center Midland, MI 48674 POLICY PERIOD This Policy applies to Bodily Injury, Property Damage or Personal Injury which occurs during the period from December 1, 1986 to December 1, 1987 at 12:01 A.M. Eastern Standard Time. Page 1 of 20 DO 124028 CONFIDENTIAL National Indemnity Company Policy No. EL 50522 COVERAGE Excess Liability for Bodily Injury, Property Damage and Personal Injury: $5,000,000 in Losses per Occurrence and $10,000,000 in the aggregate, inclusive of Claims Expenses, in excess of: A. Underlying Primary Insurance, or B. $1,000,000 combined single limit for each and every Occurrence, exclusive of Claims Expenses, for losses not covered by Underlying Primary Insurance. AGGREGATE LIMITS OF INSURANCE The following aggregate limit, inclusive of Claims Expenses, apply for this Policy: UNDER NO CIRCUMSTANCES WILL THE INSURER BE LIABLE FOR MORE THAN $10,000,000 IN THE AGGREGATE, INCLUSIVE OF CLAIMS EXPENSES, BY REASON OF ISSUING THIS POLICY. UNDERLYING PRIMARY INSURANCE A. The Dow Chemical Company and subsidiaries shall insure or retain the following primary coverages: 1. General Liability including Products Liability (other than U.S.A. Products Liability), Automobile Liability, Watercraft Liability (respects Barges, Scows, Lighters, Tugs, Launches and similar Watercraft) in rem. Airport Liability, Hangar Liability, Professional Liability, Malpractice Liability, Employee Benefits Liability, Blanket Contractual and Care, Custody and Control other than owned or transported: $5,000,000 combined single limit, exclusive of Claims Expenses, for each and every Occurrence. 2. U.S.A. Products Liability: a. $500,000 combined single limit, inclusive of Claims Expenses, for each and every Occurrence and all Claims Expenses in excess of $500,000 for each and every Occurrence. fro>* vD cn Page 2 of 20 DO 124029 CONFIDENTIAL I National Indemnity Company Policy NO. EL 50522 b. In excess of Subsection 2(a) above, $4,500,000 combined single limit (inclusive of Claims Expenses not exceeding $500,000 for each and every Occurrence) for each and every Occurrence up to an annual aggregate limit of $20,000,000. 3. a. Employers Liability, Employers Liability Occupational Disease including Federal Longshoreman's and Harbor Workers Act and Jones Act: $5,000,000 Bodily Injury by Accident/Each Accident. $5,000,000 Bodily Injury by Disease/Each Employee. $5,000,000 Bodily Injury by Disease/Policy Limit. 4. Aircraft Liability - Owned and Non-Owned: $200,000,000 combined single limit including admitted liability. 5. Landing Dock Liability: $5,000,000 combined single limit for each and every Occurrence. B. The Dow Corning Corporation and subsidiaries shall insure or retain the following primary and underlying excess coverages: 1. a. General Liability including Automobile Liability, Products/Completed Operations Liability, Watercraft Liability and Malpractice Liability, Blanket Contractual Liability, Care, Custody and Control, Personal Injury Liability, Host Liquor Liability (separate U.S. and Canadian Policies) for domestic operations: $3,000,000 combined single limit exclusive of Claims Expenses for each and every Occurrence subject to separate annual aggregate limits where applicable. b. In excess of Subsection 1(a) above: General Liability including Products/Completed Operations Liability, Watercraft Liability and Malpractice Liability, Blanket Contractual Liability, Care, Custody and Control, Personal Injury Liability, Host Liquor Liability, but excluding Automobile Liability, for domestic F 191966 Page 3 of 20 DO 124030 CONFTDFNTTAL National Indemnity C mpany Policy No. EL 50522 operations: $2,000,000 combined single limit exclusive of Claims Expenses for each and every Occurrence subject to separate annual aggregate limits where applicable. a. General Liability including Automobile Liability, Products/Completed Operations Liability, Watercraft Liability and Malpractice Liability, Blanket Contractual Liability, Care, Custody and Control, Personal Injury Liability, Host Liquor Liability for foreign operations: $1,000,000 combined single limit exclusive of Claims Expenses for each and every Occurrence subject to separate annual aggregate limits where applicable. b. In excess of Subsection 2(a) above: General Liability including Products/Completed operations Liability, Watercraft Liability and Malpractice Liability, Blanket Contractual Liability, Care, Custody and Control, Personal Injury Liability, Host Liquor Liability, but excluding Automobile Liability, for foreign operations: $4,000,000 combined single limit exclusive of Claims Expenses for each and every Occurrence subject to separate annual aggregate limits where applicable. 3. Employers Liability, Employers Liability Occupational Disease, including Federal Longshoreman's and Harbor Workers Act and Jones Act. $1,000,000 Bodily Injury by Accident/Each Accident. $1,000,000 Bodily Injury by Disease/Each Employee. $1,000,000 Bodily Injury by Disease/Policy Limit. 4. Aircraft Liability - Owned and Non-Owned: $50,000,000 combined single limit including admitted liability. 5. Landing Dock Liability: $5,000,000 combined single limit for each and every Occurrence. Page 4 of 20 DO 124031. CONFIDENTIAL vo O' -J F 191968 National Indemnity Company Policy No. EL 50522 CLAIMS EXPENSES With respect to any Occurrence covered by the terms and conditions of this Policy and subject to the Aggregate Limits of Insurance, inclusive of Claims Expenses, of this Policy the Insurer shall: 1. Pay that proportion of Claims Expenses incurred by the Named Insured that is the same proportion as the indemnity payments assigned to this excess layer are to the total indemnity payments, excluding U.S.A. Products/ Completed Operations Liability; and 2. For U.S.A. Products/Completed Operations Liability and subject to a maximum amount of $500,000 Claims Expenses per Occurrence assigned to the Underlying Primary Insurance and this policy layer, pay Claims Expenses which exceed the Underlying Primary Insurance per Occurrence and/or aggregate limits for U.S.A. Products/Completed Operations Liability. COVERAGE TERRITORY Worldwide. PREMIUM $6,300,000 fully earned at the inception of the Policy. ENDORSEMENTS ATTACHED AT INCEPTION No. l -- Nuclear Energy Liability Exclusion No. 2 -- Seepage, Pollution and Contamination Exclusion ALL CLAIMS MUST BE REPORTED TO NATIONAL INDEMNITY COMPANY, 3024 HARNEY STREET, OMAHA, NEBRASKA, 68131 Page 5 of 20 DO 12403? CONFIDENTIAL F 191969 National Indemnity Company Policy No. EL 50522 INSURING AGREEMENT In consideration of the payment of the premium shown in the Declarations, National Indemnity Company (hereinafter referred to as Insurer) hereby agrees with the Named Insured, subject to the terms, conditions, limits, and exclusions of this Policy: 1. To indemnify the Insured for all sums which the Insured shall become legally obligated to pay as damages because of Bodily injury, Property Damage or Personal Injury under the Coverage and caused by an Occurrence which took place during the Policy Period and within the Coverage Territory, Provided always that it is expressly agreed that liability shall attach to the Insurer only after the primary insurers have paid the full amount of their respective liability as shown in the Underlying Primary Insurance section of the Declarations; and the Insurer shall then be liable to indemnify Insured for only such additional amounts as will provide the Insured with excess coverage under the Policy limits shown in the COVERAGE and AGGREGATE LIMITS OF INSURANCE sections of the Declarations. 2. The Occurrence on which a Claim is based must have taken place in the Coverage Territory and during the Policy Period defined in the Declarations. 3. Defense and Settlement. The Insurer shall have no obligation to investigate, to defend or to participate in the defense of any Suit against the Insured, Provided, however, the Insurer shall be kept informed about all Claims to which this insurance may apply, and may make such investigation and suggestions as it chooses. The Insurer shall not be obligated to pay any Claim, settlement or judgment after the Insurer's Aggregate Limits of Insurance have been exhausted by payment of Claims, settlements, judgments or Claims Expenses on behalf of any Named Insured or any person insured by this Policy. EXCLUSIONS Section 1. The coverage of this Policy shall not apply to, and Insurer shall not be liable to make any payment for, loss in connection with: 1. Any obligation of the Insured under any Workers Compensation, Disability Benefits, Unemployment Compensation or Employee Laws or any similar laws. 2. Any Bodily Injury or Personal Injury to any officer, director or employee of a Named Insured arising out of or in the course of his office or employment. 3. Any Bodily Injury, Personal Injury or Property Damage due to war (declared or undeclared), civil war, insurrection, invasion, rebellion, riot, revolution or armed hostilities, or to any act or condition incident thereto. Page 6 of 20 D0 17A033 CONFIOENTTAI.. National Indemnity Company Policy No. EL 50522 F 191970 4. Any Property Damage to property or products owned by any Named Insured. 5. Any Property Damage to work performed by or for a Named Insured arising out of the work or portion thereof, or out of material, parts or equipment furnished in connection therewith. 6. Any Claims made against an Insured: (i) on account of Bodily Injury, Personal Injury or Property Damage resulting from the failure of the Insured's Products or Insured's Work completed by or for the Insured to perform the function or serve the purpose intended by the Insured, if such failure is due to a mistake or deficiency in any design, formula, plan, specification, advertising material or printed instructions prepared or developed by the Insured; but this exclusion (i) does not apply to Bodily Injury, Personal Injury or Property Damage resulting from the active malfunctioning of such products or work; (ii) on account of Property Damage to the Insured's Products arising out of such products or any part of such products; (iii) on account of Property Damage to work performed by or on behalf of the Insured arising out of Insured's Work or any portion thereof, or out of the materials, parts or equipment furnished in connection therewith; or (iv) for the withdrawal, inspection, repair, replacement, recall or loss of use of the Insured's Products or Insured's Work completed by or for the Insured if such products, work or property are withdrawn from the market or from use because of any known or suspected defect or deficiency therein. 7. Any Bodily Injury, Property Damage or Personal Injury intended from the standpoint of the Insured. 8. Any Bodily Injury, Property Damage or Personal Injury for which the Insured is obligated to pay damages by reason of liability and/or Claims based upon the Employee Retirement Income Security Act of 1974, Public Law 93-406, commonly referred to as the Pension Report Act of 1974, and amendments thereof, or similar provisions of any federal, state or local statutory law or common law. 9. Any Bodily Injury, Property Damage or Personal Injury for which the Insured is obligated to pay damages by reason of liability arising out of Aircraft Products. Aircraft Products means aircraft (including missiles or spacecraft and any ground Page 7 of 20 DO Co hlF 124034 TftFNTT A! National Indemnity Company Policy No. EL 50522 support or control equipment used therewith), and any articles furnished by the Insured or their predecessors in business and installed in aircraft or used in connection with aircraft or for the manufacture thereof, including ground handling tools and equipment and also means training aids, instruction, manuals, blueprints, engineering or other data, and/or any article in respect of which engineering or other advice and/or services and/or labor have been given or supplied by the Insured or their predecessors in business relating to such aircraft or articles. 10. Any Bodily Injury, Property Damage or Personal Injury for which the Insured is obligated to pay damages by reason of liability under U.S. Water Quality Improvement Act of 1970. 11. Any Bodily Injury, Property Damage or Personal Injury for which the Insured is obligated to pay damages or cost of control of any oil/gas well and loss of hole and/or in hole equipment. 12. Any Bodily Injury, Property Damage or Personal Injury for which the Insured is obligated to pay damages by reason of liability resulting from Marine Protection and Indemnity and Charterers Liability except as applied to barges, scows, lighters, tugs, launches and similar watercraft. 13. Any Bodily Injury, Property Damage or Personal Injury for which the Insured is obligated to pay damages by reason of liability resulting from Diethylstilbestrol ("D.E.S."). 14. Any Bodily Injury, Property Damage or Personal Injury for which the Insured is obligated to pay damages by reason of liability and/or Claims resulting from manufacture, use and/or distribution of Agent Orange and/or product known as M245T". 15. Any Bodily Injury, Property Damage or Personal Injury for which the Insured is obligated to pay damages by reason of liability and/or Claims resulting from the administration and/or sale or consumption of MER 29 and Kevadon. 16. Any Bodily Injury, Property Damage or Personal Injury for which the Insured is obligated to pay damages by reason of liability and/or Claims resulting from the manufacture and/or distribution of Swine Flu vaccine. 17. Any Bodily Injury, Property Damage or Personal Injury for which the Insured is obligated to pay damages by reason of liability and/or Claims resulting from the manufacture, distribution and/or use of a product known as "SARABOND". 18. Any Bodily Injury, Property Damage or Personal Injury for which the Insured is obligated to pay damages by reason of liability and/or Claims resulting from the manufacture, distribution and/or use of a product known as "BENDECTIN". 19. Any loss or losses attaching to the Insured in any fiduciary capacity. 20. Any loss or depreciation of, damage to cash and/or securities and/or other personal property in the care, custody and control of the Insured. F 191971 Page 8 of 20 oo x0fzM Nati nal Indemnity Company Policy No. EL 50522 21. Any Claim made against the Insured based upon, or arising out of, or any way involving, any one or more of the following: a. Any policy of insurance, reinsurance, or bond including annuities, endowments or pension contracts (hereinafter collectively referred to as "Insurance Policy") issued by the Insured. b. Any insurance policy issued by any other entity or self-insured program, for which the Insured provides services of any kind or character. c. The issuance of, or refusal to issue or renew, or cancellation of, any insurance policy by the Insured. d. The issuance of, refusal to issue or renew, or cancellation of, any insurance policy issued by any other insurer or any evidence of insurance under any self-insured program, for which the Insured provides services of any kind or character whatsoever. e. Any Claim under any insurance policy issued by the Insured, or any insurance policy issued by any other entity of any self-insured program, for which the Insured provides services of any kind or character whatsoever. f. The handling by the Insured or any of its representatives or any Claim or obligation arising out of or under any insurance policy issued by the insured or any insurance policy issued by any other entity or any self-insured program for which the Insured provides services of any kind or character whatsoever. Section 2. Except insofar as coverage is available to the Insured under the Underlying Primary Insurance, the coverage of this Policy shall not apply to, and Insurer shall not be liable to make any payment for, Loss in connection with: a. Medical malpractice liability; b. Loss of and/or damage to leased premises; c. Punitive and/or exemplary damages, except this Policy will not cover punitive and/or exemplary damages as may be absolutely excluded under any other provision of this Policy; d. Underground property damage in respect of oil and/or gas exploration and/or drilling operations, except this Policy will not cover such damages as may be absolutely excluded under any other provision of this policy; e. Explosions, blowouts, and/or cratering damages in respect of oil and/or gas exploration and/or drilling operations, except this Policy will not cover such damages as may be absolutely excluded under any other provision of this Policy; Page 9 of 20 DO 174036 CONFTDFNTTAL National Indemnity Company Policy No. EL 50522 PERSONS INSURED 1. Each of the organizations specified in the Declarations as a Named Insured is insured by this Policy. 2. Employees of each Named Insured are also covered but only for acts within the scope of their employment. None of these employees is insured for Bodily Injury or Personal Injury to a co-employee or for Property Damage to property owned or controlled by a co-employee. 3. The Insured's joint ventures and partnerships shall be additional Insureds under this Policy with respect to any Occurrence arising out of or in connection with such joint ventures or partnerships; Provided, However, that under no circumstances shall the Insurer be liable for a greater percentage of any loss arising from such an Occurrence than the percentage of the Insured's equity interest in the joint ventures or partnerships. 4. Any officer, director, stockholder, partner or employee of the Named Insured, while acting in his capacity as such, and any organization or proprietor with respect to real estate management for the Named Insured is insured by this Policy. 5. Any person, organization, trustee or estate to whom the Named Insured is obligated by virtue of a written contract or agreement to provide insurance such as is afforded by this Policy is insured by this Policy but only to the extent of such obligation and in respect of operations by or on behalf of the Named Insured or of facilities of the Named Insured or of facilities used by the Named Insured. PER OCCURRENCE AND AGGREGATE LIMIT Regardless of the number of; (1) Insureds under this Policy; (2) persons or organizations who sustain injury or damage; (3) Occurrences, Claims or Suits; the Insurer's total aggregate liability under this Policy shall not under any circumstances or for any reason exceed the Per Occurrence Limit of $5,000,000 or the Aggregate Limit of $10,000,000. CONDITIONS 1. Duties in the Event of Occurrence, Claim or Suit: a. Whenever the manager of liability and/or corporate legal counsel in the Corporate Insurance Department, located at the General Offices of Dow Chemical at Midland, Michigan 48460, 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 therefore, would result in loss of $1,000,000 or more or warrants Page 10 of 20 DO 124037 CONFIDENTIAL National Indemnity Company Policy No. EL 50522 a reserve of $1,000,000 or more, notice shall be sent to the Insurer as soon as practicable. Failure to give notice of any Occurrence which at the time of its happening did not appear reasonably likely to result in a loss of $1,000,000 or more or to warrant a reserve of $1,000,000 or more, but which at a later date would appear to give rise to such a loss or to warrant such a reserve, shall not prejudice such Claims if the Insured gives notice of such Occurrence to the Insurer promptly upon concluding that such a Loss is likely or such a reserve is warranted. b. The Insured shall promptly notify the Insurer in writing of any Claim made or Suit brought against any Insured. c. Each Insured shall immediately send to the Insurer copies of any demands, Claims, notices, summons, complaints or legal papers received in connection with a Claim or Suit. d. Each Insured shall authorize the Insurer to obtain records, reports and other information and shall cooperate with the Insurer in the investigation, if any, the Insurer chooses to make in connection with any Claim or Suit. e. Each Insured shall assist the Insurer in the enforcement of any right against a person who, or corporation or other organization which, may be liable to any Insured because of injury or damage to which this insurance may apply. 2. Other Insurance. This insurance shall be in excess of the Underlying Primary Insurance and any other valid and collectible insurance available to the Insured whether the other insurance is stated to be primary, pro rata, contributory, excess, contingent or otherwise, unless the other insurance is written only as specific excess insurance over the limits of liability provided by this Policy. 3. 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 Insurer. Inasmuch as this Policy covers a specific layer of liability, the Insured's right of recovery against any person or other entity cannot always be exclusively subrogated to the Insurer. It is therefore understood and agreed that in case of any payment hereunder, the Insurer 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 Insurer shall then be reimbursed out of any balance remaining up to the amount paid hereunder; lastly, the interests (including the Insured) of whom this coverage is Page 11 of 20 DO 124008 CONFIDENTIAL National Ind mnity Company Policy No. EL 50522 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 Insured) concerned, in the ratio of their respective recoveries as finally settled. 4. No Waiver or Change. Notice to or knowledge possessed by any person shall not effect a waiver or change in any part of this Policy or estop the Insurer from asserting any rights under the terms of this Policy; nor shall the terms of this Policy be waived or changed, except by endorsement issued to form a part hereof, signed by an authorized representative of the Insurer. 5. Inspection and Audit. The Insurer shall be permitted but not obligated to inspect the Insured#s property and operations at any time. Neither the Insurer's rights 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 Insurer may examine and audit the Insured's books and records at any time as far as they relate to the subject matter of this insurance. 6. Assignment. An attempted assignment of interest by any Insured (whether voluntary or otherwise) under this Policy shall be void and of no effect unless the Insurer in its sole discretion consents thereto by written endorsement hereon; if, however, an Insured shall be adjudged bankrupt or insolvent, this Policy shall cover that Insured's legal representatives as insured. 7. Cancellation. This Policy may not be cancelled by the Insurer. The Insurer shall have no obligation to renew or to reinstate this Policy. The Insured may cancel this Policy at any time, but in no event shall such cancellation entitle the Insured to any refund of premium, which is fully earned by the Insurer at the inception of this Policy. 8. Action Against Insurer. No action shall lie against the Insurer unless, as a condition precedent thereto, there shall have been full compliance with all the terms of this Policy, nor until the amount of the Insured's obligation to pay shall have been fully determined either by final judgments against the Insured after actual trial, or by written agreement of the Insured and the claimant, which agreement has been approved by the insurer. Such approvals by Insurer will not be unreasonably withheld. 9. Changes in Insured Operations. Premium adjustment may be required by the Insurer after the date of this Policy if the Insured acquires or creates any other entity or subsidiary whose total assets exceed one hundred million dollars ($100,000,000) at the time of acquisition or Page 12 of 20 DO 124039 CONFIDENTIAL National Indemnity Company Policy No. EL 50522 creation. Coverage shall automatically extend to any Occurrence arising in connection with the new entity or subsidiary whose total assets exceed one hundred million dollars ($100,000,000) upon the acquisition or creation thereof and premium adjustment shall be submitted to arbitration if not agreed to by the Insured and the Insurer. 10. Changes in Policy. This Policy contains all the agreements between the Insurer and the Insured. Its terms can be changed only by endorsement executed by the Insurer with the consent of Dow Chemical, which is authorized by each other Insured to make changes. 11. Arbitration. Any dispute arising under this Policy between the Insurer and an Insured shall be settled by binding arbitration in accordance with the rules of the American Arbitration Association. 12. Maintenance of Underlying Primary Insurance. It is warranted by the Insured that the underlying coverage listed in the Underlying Primary Insurance section of the Declarations, or renewals or replacements thereof not more restricted, shall be maintained in force during the currency of this Policy, except for any reduction of the aggregate limits contained therein solely by payment of Claims in respect of Occurrences happening during this Policy Period. In the event of failure by the Insured to so maintain such policies in force or to meet all conditions and warranties subsequent to loss under such policies the insurance afforded by this Policy shall apply in the same manner it would have applied had such policies been so maintained in force. In the event there is no recovery available to the Insured as a result of the bankruptcy or insolvency of an underlying primary insurer, the coverage hereunder shall apply in excess of the applicable limit of liability specified in the COVERAGE and UNDERLYING PRIMARY INSURANCE sections of the Declarations. 13. Assignment of Occurrences to a Single Policy Period. Each Occurrence must be assigned to a single Policy Period. Therefore this Policy will respond only to the following Occurrences: a. A single accident occurring within the Policy Period, or b. A continuous or repeated exposure to conditions provided the first incidence of exposure occurs during the Policy Period. If the Insured and the Insurer fail to agree as to which Policy Period an Occurrence is assigned, the dispute shall be arbitrated. Page 13 of 20 DO 1P4040 CONFTDFNTTAt Nati nal Indemnity C mpany Policy No. EL 50522 DEFINITIONS 1. Terms defined in the Declarations shall have the meanings there indicated. 2. Bodily Injury means bodily injury, sickness or disease sustained by a person, including death resulting from any of these. 3. Claim means notice received by an Insured of an intention to hold an Insured responsible for an Occurrence for which coverage may be provided under this Policy and shall include service of suit or institution of arbitration proceedings against the Insured. 4. Claims Expenses shall mean all court costs, fees, and expenses; fees for service of process; fees to attorneys; costs of undercover operative and detective service; costs of employing experts for preparation of maps, photographs, diagrams, chemical or physical analysis or for advice, opinion or testimony concerning Claims under investigation; costs for legal transcripts or testimony taken at coroner's inquests, criminal or civil proceedings; costs for copies of any public records; costs of depositions and court reporter or recorded statements; and any expense reasonably chargeable to the investigation, settlement, or defense of a Claim or loss, or to the protection and perfection of the subrogation rights of a Named Insured. No portion of the employee costs or the general and administrative expenses of an Insured shall be included in Claims Expenses. 5. Insured means any Named Insured or other person covered by this Policy. All obligations of the Named Insured shall be joint and several. 6. Insured's Product means goods or products manufactured, sold or distributed by an Insured, including any container thereof (other than a vehicle); but Insured's Product shall not include vending machines or other properties rented to or located for the use of others but not sold. Insured's Product includes warranties or representations made with respect to the fitness, quality, durability or performance of any such vehicle or part. 7. Insured's Work means: a. Work or operations performed by an Insured or on its behalf. b. Parts or equipment furnished by an Insured in connection with such work or operations. Insured's Work includes warranties or representations made with respect to the fitness, quality, durability or performance of any such work, operations, part or equipment. 8. Occurrence means an accident, including a continuous or repeated exposure to substantially the same general harmful conditions. The first incidence of such a continuous or repeated exposure shall determine the date of Occurrence for purposes of this policy. Page 14 of 20 00 1.24041. CONFIDENTIAL National Indemnity Company Policy No. EL 50522 9. Policy means this agreement including the Declarations herein, any endorsements hereto from their respective effective dates, and the application attached hereto. 10. a. Products/Completed Operations Hazard includes all Bodily Injury and Property Damage occurring away from premises owned, rented, occupied or controlled by an Insured and arising out of Insured's Product or Insured's Work, except: (i) products still in the physical possession of an Insured, or (ii) work that has not yet been completed. b. Insured's Work will be deemed completed at the earliest of the following times: (i) When all of the work called for by the Insured's contract has been completed; or (ii) When part of the work has been put to its intended use by a person other than an Insured or a person working on the same project. Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. c. This hazard does not include Bodily Injury or Property Damage arising out of: (i) The transportation of property; or (ii) The existence of tools, uninstalled equipment or abandoned or unused materials. 11. Property Damage means physical injury to tangible property, including resulting loss of use of that property. 12. Personal Injury means injury, other than Bodily Injury, arising out of one or more of the following offenses: a. False arrest, detention or imprisonment; b. Malicious prosecution; c. Wrongful entry into, or eviction of a person from, a room, dwelling or premises that a person occupies; d. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; or e. Oral or written publication of material that violates a person's right of privacy. f 191978 Page 15 of 20 DO 12404? confidential F 191979 National Indemnity Company Policy No. EL 50522 13. Suit means a civil proceeding in which damages to which this insurance applies are alleged, including an arbitration proceeding to which an Insured must submit or submits with the consent of the Insurer. IN WITNESS WHEREOF, the Insurer has caused this Policy to be executed and attested. NATIONAL INDEMNITY COMPANY ATTEST: Vice President Page 16 of 20 D0 1.24043 CONFIDENTIAL National Indemnity Company Policy No. EL 50522 NAMED INSURED: THE DOW CHEMICAL COMPANY, et al. EFFECTIVE DATE: December 1, 1986 ENDORSEMENT NO. 1 NUCLEAR ENERGY LIABILITY EXCLUSION In consideration of the premium received, it is understood and agreed that the Policy is amended to exclude: A. Injury, sickness, disease, death or destruction (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 persons or organizations 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. Expenses incurred with respect to bodily injury, sickness, disease or death resulting from the hazardous properties of Nuclear Material and arising out of the operation of a Nuclear Facility by any person or organization. C. Injury, sickness, disease, death or destruction 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 dispersed therefrom; (ii) the Nuclear Material is contained in Spent Fuel or Waste at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an Insured; or (iii) the injury, sickness, disease, death or destruction arises out of the furnishing by an Insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any Nuclear Facility, but if such facility is located within the United states of America, its territories or possessions or Canada, this exclusion (iii) applies only to injury to or destruction of property at such Nuclear Facility. D. As used in this Endorsement: (i) Hazardous properties include radioactive, toxic or explosive properties. Page 17 of 20 DO 124044 CONFTDFNTTAL National Indemnity Company Policy No. EL 50522 (ii) Nuclear material means Source Material, Special Nuclear Material or By-Product Material. (iii) Source Material, Special Nuclear Material, and By-Product Material have the meanings given them by the Atomic Energy Act of 1954 or in any law amendatory thereof. (iv) Spent Fuel means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a Nuclear Reactor. (v) 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. (vi) Nuclear Facility means: (1) any Nuclear Reactor; (2) any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium, (b) processing or utilizing spent fuel, or (c) handling processing or packaging waste; (3) any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the Insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or Uranium 233 or any combination thereof, or more than 250 grams of Uranium 235; and (4) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations. (vii) 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. (viii) With respect to injury to or destruction of property, the word injury or destruction includes all forms of radioactive contamination of property. All other terms and conditions of the Policy remain unchanged. IN WITNESS WHEREOF, the Insurer has caused this Endorsement to be executed and attested. NATIONAL INDEMNITY COMPANY ATTEST: By. xT' Vice President F191981 iretary Page 18 of 20 DO 124045 CONFIDFNTTAt National indemnity Company Policy NO. EL 50522 NAMED INSURED: THE DOW CHEMICAL COMPANY, et al. EFFECTIVE DATE: December 1, 1986 ENDORSEMENT NO. 2 SEEPAGE, POLLUTION AND CONTAMINATION EXCLUSION In consideration of the premium received, it is hereby understood and agreed that the coverage of this Policy shall not apply to, and Insurer shall not be liable to make any payment for, loss in connection with: 1. Personal Injury or Bodily Injury or loss of, or damage to or loss of use of property directly or indirectly caused by seepage and/or pollution and/or contamination of air, land, water and/or any other property, however caused and whenever occurring; or 2. Fines, penalties, punitive damages, exemplary damages, treble damages or any other damages resulting from the multiplication of compensatory damages. The words "loss of, damage to or loss of use of property" as used in this exclusion include, but shall not be limited to: a. The cost of evaluating and/or monitoring and/or controlling and/or removing and/or nullifying and/or cleaning-up seeping and/or polluting and/or contaminating substances; b. Loss of, damage to or loss of use of property directly or indirectly resulting from sub-surface operations of the Insured; and c. Removal of, loss of or damage to sub-surface oil, gas or any other substance; 3. It is further understood and agreed that the exclusions from coverage provided in paragraph 1 of this Endorsement shall not apply to the liability of the Insured which would have been insured by the Policy had the said paragraphs 1 and 2 of this exclusion not been attached, resulting from seepage, pollution and contamination caused solely by: a. unintended fire, lightning or explosion; or b. a collision or overturning of a road vehicle. 4. Notwithstanding the foregoing paragraph 3, it is understood and agreed that the exception to paragraph 1 of this Endorsement stated in paragraph 3 shall not apply to: FI 91902 Page 19 of 20 00 124046 CONFIDENT! Al National Ind mnity Company Policy No. EL 50522 a. Loss of, damage to or loss of use of property directly or indirectly resulting from sub-surface operations of the Insured, and/or removal of, loss of or damage to sub-surface oil, gas or any other substance; b. Any site or location used in whole or in part for the handling, processing, treatment, storage, disposal, or dumping of any waste materials or substances; c. The cost of evaluating and/or monitoring and/or controlling seeping and/or polluting and/or contaminating substances; d. The cost of removing and/or nullifying and/or cleaning-up seeping and/or polluting and/or contaminating substances on property at any time owned and/or leased by the Insured and/or under the control of the Insured. All other terms and conditions of the Policy remain unchanged. IN WITNESS WHEREOF, the Insurer has caused this Endorsement to be executed and attested. NATIONAL INDEMNITY COMPANY ATTEST: Vice President ecretary F 191983 Page 20 of 20 DO 124047 CONFIDENTIAL. F 191984 . ,,-L -? .Pi -','r^"-*1 ' 'f V;>,-r-*' . i' ' hr- . - ! APPLICATION 1?4048 CONFTDFNTTAl. Marsh & McLennan UMBRELLA POLICY APPLICATION Full name of Applicant (include all companies to be insured): THE DOW CHEMICAL COMPANY - REFER TO APPENDIX A Notes: (a) Give details of any operations for which coverage is not required: ALL OPERATIONS ARE TO BE COVERED (b) If the companies to be insured are not the Parent Company, please give name of the Parent Company. NOT APPLICABLE Address of: (a) Home Office: 2030 WILLARD H. DOW CENTER MIDLAND, MICHIGAN 48674 (b) Main Locations of Operations WORLDWIDE (SEE ANNUAL REPORT & 10-K INCLUDED) Estimate of: CALENDAR YEAR 1987 (a) Annual Payroll $1,812,400,000 (b) Annual Receipts or sales (1) Domestic-USA/Canada (2) Foreign $ 6,366,996,000 $ 5,646,204,000 Total $12,013,200,000 (c) Number of Employees 51,083 (27,833 in USA) Description of all Operations MULTI-NATIONAL CONCERN ENGAGED IN THE MANUFACTURE AND SALE OF CHEMICALS (45*), PLASTICS AND METALS (13*), SPECIALTY PRODUCTS (24*), AND AGRICULTURAL, HUMAN HEALTH, AND CONSUMER PRODUCTS (18*) Oo ^Ohlp- 1 ?404 5. Describe all the products manufactured, handled, distributed or sold under the following classifications: Classification Description Annual Sales a) Aircraft and/or Aerospace Products or any material or substance supplied to or for use by the Aircraft and/or Aerospace Industry. b.) Pharmaceuticals, Chemicals Petrochemicals and Nuclear Energy c.) Any Other Products. $63,834,000# ('86 ESTIMATE INCLUDED IN "ALL OTHER SALES" FIGURE APPENDIX B) Note: Aircraft Products excluded under Umbrella Program REFER TO APPENDIX B REFER TO APPENDIX B F 191986 6. (a) State (i) Estimated Advertising Expenditure per annum REFER TO APPENDIX C (ii) Advertising Media used and proportion of Expenditure on each REFER TO APPENDIX C (b) Is Advertising Agency employed?............................................. If 'yes'state if Applicant is included as Additional Insured under Agency's primary policies or protected by Hold harmeless agreement. REFER TO APPENDIX C State separately number and type of owned and leased automotive vehicles specifying: (a) Separately, number of Passenger Cars, Trucks and Tractor-Trailers. USA CANADA OTHER TOTAL CARS 2,215 300 3,225 5,740 TRUCKS 1,671 294 353 TRAILERS 164 0 19 2,318 183 TOTAL 4,050 594 3,597 8,241 124050 O0NFTD5NT TA|. F l$l 987 (b) Type of Cargo hauled with full details where inflammable and/or explosive substances are involved. MAJORITY OF DOW CARGO, INCLUDING HAZARDOUS SUBSTANCES IS TRANSPORTED BY COfWON CARRIER (c) Details of long haul (over 50 miles) operations. MAJORITY PERFORMED BY COMMON CARRIER 8. State separately (a) Number of owned and leased aircraft with individual description of each unit. REFER TO APPENDIX D - PAGE 1 (b) Give details of any facilities maintained for the purposes of servicing, repairing or refuelling aircraft and state whether these facilities would be made available for operations on aircraft of others. REFER TO APPENDIX D - PAGE 2 9. State number and type of watercraft, specifying: (a) If owned, leased or chartered BARGES TOWBOATS OWNED/LEASED CHARTERED 98 3 2 10 (b) Passenger and/or larger capacity NOT APPLICABLE (c) Type of cargo BULK, SOLID AND LIQUID CHEMICAL PRODUCTS AND RAW MATERIALS (d) Navigational Limits WORLDWIDE - MAJORITY OF BARGE TRAFFIC IS VIA COSTAL AND INLAND WATERWAYS (e) Type of Charter VARIOUS DO 124051 CONFIDENTIAL 10. Give details of any docks, ports, wharves or quay facilities. REFER TO APPENDIX E 11. Give details of any railroad facilities. DOW HAS 12,240 RAILCARS AND 59 POWER UNITS. OF THE POWER UNITS, 12 ARE LOCOMOTIVES. ALL EXCEPT 4 OF THE POWER UNITS NORMALLY OPERATE ON DOW PREMISES. THOSE EXCEPTED OPERATE OFF DOW PREMISES WHEN MAKING TRIPS BETWEEN DOW PLANTS IN TEXAS. 12. State details of operations carried out away from owned or leased premises (construction or installation work, etc.) specifying: (a) amount of work sub-contracted and details of insurance carried by sub-contractor DOW HAS TWO ENGINEERING COMPANIES INCORPORATED IN THE USA AND ONE IN EUROPE FOR BOTH THIRD PARTY AND DOW'S OWN USE. OCCASIONALLY, THE ENGINEERING COMPANY WILL SERVE AS GENERAL CONTACTOR ON A PROJECT. USUALLY THE CONSTRUCTION WORK IS SUB-CONTRACTED, WITH EITHER THE SUB-CONTRACTOR(S) OR PROJECT OWNERS(S) PROVIDING THE INSURANCE. DOW IS USUALLY RESPONSIBLE FOR THE ENGINEERING WORK. (b) nature of projects and/or contracts involved. INDUSTRIAL, MAINLY CHEMICAL PLANTS 13. State details including separate values and Fire/Extended Coverage rates of: (a) Leased Premises with values in excess of $2,000,000 where Applicant is not held harmless or named as additional Insured in premises owner's Fire/Extended Coverage Policy WE ANSWER ''NONE" TO THE QUESTION OF WHETHER WE HAVE LEASED PREMISES OR PROPERTY IN OUR CARE, CUSTODY OR CONTROL WITH VALUE IN EXCESS OF $2,000,000 AND HAVE THE OBLIGATION TO CARRY FIRE AND EXTENDED COVERAGE BUT DO NOT. THIS RESPONSE IS CONSISTENT WITH THAT GIVEN IN PREVIOUS YEARS. (b) Any other property of others in the Applicant's Care, Custody or Control where values are likely to exceed $2,000,000 at any time. NONE WHICH ARE NOT COVERED BY PROPERTY, OR PRIMARY LIABILITY INSURANCE. DO 124052 GONFTDFNTTAL F 191988 14. State details of written contractual agreements other than liability assumed under any lease of premises, easement agreement, agreement required by Municipal ordinance, side-track agreements and elevator escalator mainenance agreement. NORMAL TO BUSINESS 15. Has the Applicant any exposure under the following legislation?.YES... If 'Yes' specify which and give separate payrolls. (a) Jones Act or Admiralty Jurisdiction NO (b) federal Railroad Employers Act NO (c) Federal Longshoreman's and Harbour Workers Act $1,190,979 16. Describe any malpractice exposures, together with: (a) Number of Doctors employed (b) Number of Nurses employed FULL TIME 32 CONTR/P.T. 72 FULL TIME 75 CONTR/P.T. 40 (c) Facilities maintained FACILITIES ARE MAINTAINED FOR EMPLOYEES EMERGENCY AND HEALTH MAINTENANCE PURPOSES AT ALL MAJOR DOW LOCATIONS. EMERGENCY FIRST-AID MAY BE PROVIDED TO NON-DOW PERSONNEL. (d) Any malpractice exposures other than medical DOW HAS EXPOSURES THAT ARE NORMAL FOR AN INTERNATIONAL INDUSTRIAL CORPORATION. 17. Give details of any exposure under any liquor law. DOW HAS EXPOSURES THAT ARE NORMAL FOR AN INTERNATIONAL INDUSTRIAL CORPORATION. F 1 9 1989 18. (a) (b) Give details of any insurance the Applicant intends to purchase as respects the Underlying Amounts and details of any insurance that may be in force that would act in the same manner. REFER TO APPENDIX F Give details of any non-standard exclusion contained therein. EXCLUSIONS CONTAINED IN THE INSURANCE LISTED ARE CONSIDERED TO BE STANDARD DO 124053 CONFIDENTIAL F 191990 19. State loss record during the past ten years specifying: - (a) Full details of all claims inclusive of expenses (whether insured or not) in excess of $500,000 (enter full amount for first dollar for each case). REFER TO APPENDIX 0-1, G-II AND G-III FOR LOSS EXHIBITS. (b) The organisation who has evaluated any outstanding amounts and the date of the said evaluation. LOSSES UNDER INSURED PROGRAMS ARE EVALUATED BY INSURANCE CARRIERS. LOSSES UNDER NON-INSURED OR DOW SUBSIDIARY INSURED PROGRAMS ARE EVALUATED BY DOW. IN ADDITION, SPECIFIC LOSSES, AND UNDERLYING AGGREGATE PENETRATIONS ARE EVALUATED BY LORD, BISSELL & BROOK AND/OR PETERSON, ROSS, ETAL AS REQUIRED BY LLOYD'S OR LONDON UNDERWRITERS. 20. Has the Applicant ever handled his own losses in any self-insured areas and if so give details of such loss handling. REFER TO APPENDIX H Date.. Npypmtar. S#. . DO 174054 CONFTOEIMTTAl F 191991 THE `DOW CHEMICAL COMPANY APPENDIX A 1. THE DOW CHEMICAL COMPANY AND DOW CORNING CORPORATION, and any domestic corporation or company in which either or both owns or may own directly or indirectly 50 percent or more of the combined voting power, and any foreign corporation or company in which either or both owns or may own directly or indirectly more than 50* of the combined voting power. Subsidiary companies and corporations, owned by subsidiary companies and corporations of the named insured shall be included as insureds if the percentage of ownership is in accordance with the above. It is agreed with underwriters that Brazil "limitada" companies (meaning limited partnership) shall be considered as meaning "corporation" as used in named insured clause. DOWELL SCHLUMBERGER INCORPORATED IS 50* OWNED BY DOW AND SHOULD BE EXCLUDED FROM COVERAGE. AL MIYAH CHEMICALS (LTD.) IS 49* OWNED BY DOW AND SHOULD BE INCLUDED FOR COVERAGE. 1?405s confidential THE DOM CHEMICAL COMPANY APPENDIX E SALES PILL USA/CANADA DRUGS Over-the-counter Ethical Yotal FOREIGN DRUGS Over-the-Counter Ethical Total ALL OTHER SALES 1983 1984 NONE NONE 147,500,000 $167,200,000 JZH77007000- $42,383,000 *214,556,000 "'i25S;939;000` 1985 Actual NONE 1986 Estiiate NONE $40,766,000 $273,862,000 *3i;s2b;ooo~ $48,512,000 $336,776,000 "J385;28S;iS0Ci' 1987 Estimate NONE $52,000,000 $404,000,000 }75S70007000~ tl8,400,000 $377,800,000 "*3957200;0ir *29,832,000 $362,669,000 I392750I7000- $29,816,000 $305,260,000 S33570787000* $35,154,000 $414,720,000 'jw9;87rooo' $38,000,000 $456,000,000 "'fwi;ooo;ooo' $10,340,161,000 $10,768,560,000 $10,887,296,000 $10,660,838,000 $11,063,200,000 TOTAL SALES tlO,951,061,000 $11,418,000,000 $11,537,000,000 $11,496,000,000 $12,013,200,000 PAYROLL $1,627,000,000 $1.548,000,000 tl,663,000,000 tl,747,800,000 *1.812.400,000 F 191992 6. (a) APPENDIX C THE DOW CHEMICAL COMPANY Advertising expenses for The Dow Chemical Company for 1985 were $193,203,000. U.S. expenses were $152,938,000 and all other $40,265,000. The percentages by media in the USA: Magazine 193, Television 613; Newspaper 13; Radio 13; Other 183; 1003; Dow states foreign percentages would vary somewhat because of lower televsion expenditures. 6. (b) Dow does business through its various product departments with over twenty-five different advertising agencies. No standard contract wording is applicable, but normally Dow would neither be an additional insured, nor held harmless under the terms of the contracts. F 191993 _00 1;?4056 CNFrDFNrrAL FI 91994 THE DOW CHEMICAL COMPANY APPENDIX D Page I of 2 8. (a) AIRCRAFT I.D. NO. SEATING CAPACITY 1981 Falcon 50 1976 Falcon 10 1969 Falcon 20 1968 Falcon 20 1979 Beech King Air 200 1979 Beech King Air 200 1977 Beech King Air 200 1978 Beech King Air 200 1982 Cessna Skywagon 1974 Gates Learjet 25B 1968 Bell Jet Ranger (Leased) 1976 Cessna Citation 1979 Beech King Air 200 1982 Falcon 100 N52DC N682D N33L N33D N662L N2066T N18345 N2044D N9471N N55V N4068G CGDWS CFDIO N662D 10+2 Crew 6+2 Crew 10+2 Crew 10+2 Crew 7+2 Crew 8+2 Crew 8+2 Crew 8+2 Crew 3+1 Crew 9+2 Crew 4+1 Crew 6+2 Crew 7+2 Crew 6+2 Crew 00 124057 OONFIOFNITAI. FI 91995 8. (b) APPENDIX D Page 2 of 2 THE DOW CHEMICAL COMPANY MIDLAND: 1 - HANGAR WITH A CAPACITY OF 6 PLANES (5 Dow owned or leased planes are hangared - occasionally non-Dow visitor aircraft are hangared) TOTAL MAXIMUM EXPOSURE: $25,500,000 ($17 Million Dow Planes) NO TIE DOWNS TEXAS: 1 - HANGAR WITH 6 COMPANY PLANES (all of which are Dow owned or leased - occasionally non-Dow visitor aircraft are Hangared). TOTAL MAXIMUM EXPOSURE: $9,905,000 (Dow Planes) NO TIE DOWNS SARNIA: 1 - HANGAR WITH A CAPACITY OF 3 PLANES (2 of which are Dow owned or leased - occasionally non-Dow visitor aircraft are Hangared). TOTAL MAXIMUM EXPOSURE: $3,000,000 (Canadian)(Dow Planes) NO TIE DOWNS THE ABOVE FACILITIES ARE MAINTAINED FOR THE PURPOSE OF SERVICING, REPAIRING, AND REFUELING DOW AIRCRAFT. UNDER EXTENUATING CIRCUMSTANCES THE DOW FACILITIES AT TEXAS AND SARNIA COULD BE MADE AVAILABLE TO AIRCRAFT OF OTHERS FOR HANGARING. THE MIDLAND FACILITY HAS ONE AVAILABLE SPACE FOR AIRCRAFT OF OTHERS. DO 124058 CONFIDENTIAL F 191996 THE DOW CHEMICAL COMPANY MARINE TERMINALS APPENDIX E Page 1 of 3 10. U.S. AREA (2) Pine Bluff, AR Long Beach, CA Pittsburg, CA San Pedro, CA Torrance, CA Pensacola, FL Tampa,FL Savannah, GA Channahon, IL (2) Chicago, IL (2) Granite City, IL Sunshine, LA (2) Bay City, MI Rosemont, MN St. Louis, MO Bayonne, NJ Catoosa, OK McKees Rock, PA (2) Deer Park, TX Freeport, TX Galena, TX Seabrook, TX Vancouver, WA Sheboygan, WI *JV - Joint Venture 50/50 JV*,Dow Operated Dow Operated 50/50 JV*, Dow Operated 1-Dow Owned; 1-Dow Operated 50/50 JV*,Not Dow Operated Dow Operated Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement ' Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement CANADIAN AREA North Vancouver, British Columbia St. Johns, New Brunswick Botwood, Newfoundland Cornwall, Ontario Marathon, Ontario Sarnia, Ontario Thunder Bay, Ontario Bai Comeau, Quebec Quebec City, Quebec Three Rivers, Quebec Dow Owned Dow Owned* Dow Owned* Dow Owned Dow Owned Dow Owned* Dow Owned* * Dow owned, operated by contractor Service Agreement Service Agreement Service Agreement Service Agreement DO 124059 CONFIDENTIAL THE DOW CHEMICAL COMPANY EUROPEAN MARINE TERMINALS Durban, South Africa Mombasa, Mid East Africa Antwerp, Belgium Ghent, Belgium Helsinki, Finland Blaye, France Dunkerque, France LeHarve, France Rouen, France Stade, Germany (Plant) Barry, Great Britain Dagenham, Great Britain Grangemouth, Great Britain Grays, Great Britain Immingham, Great Britain Lerwick, Great Britain Purfleet, Great Britain Seal Sands, Great Britain Teeside, Great Britain Avlis, Greece Lavrion, Greece Botlek, Holland Flushing, Holland NWE Matex, Rotterdam, Holland Panocean, Rotterdam, Holland Terneuzen, Holland (Plant) Genoa, Italy Livorno, Italy Barcelona, Spain Bilbao, Spain Tarragona, Spain (Plant) Gothenburg, Sweden Gebze, Turkey Sharjah, United Arab Emirates BRAZILIAN AREA Dow Owned Dow Owned Dow Owned Dow Owned (45%) Dow Owned Dow Owned Dow Owned Aratu, Brazil Guaruja, Brazil Itajai, Brazil Caju, Rio de Janeiro Dow Owned Dow Owned Dow Owned APPENDIX E Page 2 of 3 Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement ' Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement F 191997 DO OONF THE DOW CHEMICAL COMPANY MARINE TERMINALS LATIN AMERICAN AREA Buenos Aires, Argentina LaPlata, Argentina San Antonio, Chile Cartegena, Columbia Tuxpan, Mexico Puerto Rico, Guayanilla Pt. Cabello, Venezuela PACIFIC AREA Melbourne, Australia Sidney, Australia Hong Kong Ichikawa, Japan Kawasaki, Japan Osaka, Japan Tokyo, Japan Yokohama, Japan Auckland, New Zealand Wellington, New Zealand Singapore Singapore Bangkok, Thailand Kinu Ura **Own tanks, lease land Dow Owned Dow Owned Dow Owned Dow Owned Dow Owned Dow Owned Dow Owned APPENDIX E Page 3 of 3 Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement Service Agreement ** Service Agreement F 191998 no -174061 conf^fntTAL APPENDIX F F 191999 THE DOW CHEMICAL COMPANY SCHEDULE OF UNDERLYING INSURANCES 18.(a) 1. General Liability including Products Liability (other than U.S.A. Products Liability), Automobile Liability, Watercraft Liability (respects Barges, Scows, Lighters, Tugs, Launches and similar watercraft) in Rem, Airport Liability, Hangar Liability, Professional Liability, Malpractice Liability, Employee Benefits Liability, Blanket Contractual and Care, Custody and Control other than owned or transported. Carrier $5,000,000 C.S.L. B.I. and/or P.D. Aetna C&S (Domestic) Per Occurrence/No Aggregate and Self-Insured Insurance Company of the State of Pennsylvania (International) and Self-Insured 2. Products Liability respects U.S.A. $5,000,000 C.S.L. B.I. and/or P.D. Per Occurrence (Including Allocated Expenses not exceeding $500,000 any one occurrence) Dorinco or Self-Insurance $20,000,000 C.S.L. B.I. and/or P.D. Annual Aggregate (Including Allocated Expenses not exceeding $500,000 any one occurrence) ONLY AMOUNTS (INCLUDING ALLOCATED EXPENSES) EXCESS OF $500,000 each occurrence (including Allocated Expenses) shall go to erode the Annual Aggregate. In the event the $20,000,000 Aggregate is exhausted, Unbrella to be excess of $500,000 each occurrence (including Allocated Expenses not exceeding $500,000 any one occurrence.) 3. Employers Liability.Employers Liability Occupational Disease, including Federal Longshoreman Act & Jones Act. $5,000,000 Bodily Injury by Accident/Each Accident $5,000,000 Bodily Injury by Disease/Each Employee $5,000,000 Bodily Injury by Disease/Policy Limit 4. Aircraft Liability $200,000,000 Each Occurrence Standard Fire Insurance Company Aetna C&S Texas Employers Insurance Association U.S.A.I.G. DO 1.2406? CONFTDFNTTAl F 19 2 0 0 f 0 APPENDIX G-I THE DOW CHEMICAL COMPANY UNDERLYING AGGREGATE IMPAIRMENT, U.S. PRODUCT LOSSES AS IF CALENDAR YEAR 76 77 78 79 80 81 82 83 84 85 86 AGGREGATE IMPAIRMENT PAID OPEN TOTAL 0 00 198,214 0 198,214 2,840,823 0 2,840,283 759,372 0 759,372 1,617,497 0 1,617,497 279,848 0 279,848 323,404 1,699,369 2,022,773 0 1,170,000 1,170,000 0 400,000 400,000 339,605 2,968,500 3,308,105 0 60,000 60,000 LIMIT REMAINING 20,000,000 19,801,786 17,159,177 19,240,628 18,382,503 19,720,152 17,977,227 18,830,000 19,600,000 " 16,691,895 19,940,000 This exhibit is based on an underlying limit of $20,000,000 for each period shown. Total loss limited to $5,000,000 subject to retention of $500,000 each loss including allocated expenses. Allocated expenses are limited to $500,000 each loss. Amounts shown do not include Bendectin or Sarabond losses which are excluded products under the current program. Valuation Date: September 24, 1986 av APPENDIX G-II Page I of 3 THE DOW CHEMICAL COMPANY MAJOR LOSSES EXCESS OF $500,000 FROM FIRST DOLLAR (EXCLUDING U.S. PRODUCTS) VALUATION DATES: JUNE 30, 1986, JULY 1, 1986 AND SEPTEMBER 10, 1986* DATE OF OCCURRENCE ** 1/77 COMPANIES Ae tna STATUS (BI) $ 1,000,000 Paid Loss 160,007 Paid Expense $ 1,160,007 CLOSED ** 1/78 Aetna (BI) $ $ 350,000 Paid Loss 153,361 Paid Expense 503,361 CLOSED 6/78 Aetna (BI) $ $ 450,000 Paid Loss 73,846 Paid Expense 523,846 CLOSED 7/78 Aetna $ 970,000 Paid Loss 15,747 Paid Expense $ 985,747 CLOSED ** 8/78 Aetna (BI) $ (PD) $ 528,262 Paid Loss 10,737 Paid Loss 21,780 Paid Expense 560,779 CLOSED NARRATIVE OTHER LIABILITY Curlender - lab analysis OTHER LIABILITY Liston, Jamie L. Alleged untimely lab report OTHER LIABILITY Brown, J.M. Suit alleges unsafe place to work OTHER LIABILITY Lykes Brothers improper loading and packing of chemicals AUTOMOBILE LIABILITY Harville, C. accident while . turning * Valuation Dates: 7-01-86 FFA 6-30-86 Aetna 9-10-86 Texas Employers** ** Losses incurred by divisions divested by Dow. DO 124064 C0NFI0FN7TAL F 192001 APPENDIX G- II Page 2 of 3 THE DOW CHEMICAL COMPANY MAJOR LOSSES EXCESS OF $500,000 FROM FIRST DOLLAR (EXCLUDING U.S. PRODUCTS) VALUATION DATES: JUNE 30, 1986, JULY 1, 1986 AND SEPTEMBER 10, 1986* DATE OF OCCURRENCE 9/78 COMPANIES Aetna STATUS (BI) $ 1,640,405 Paid Loss 221,274 Paid Expense $ 1,861,679 CLOSED 5/79 Aetna (BI) $ 4,675,437 Paid Loss (PD) 57,313 Paid Loss 465,596 Paid Expense (PD) 687 Open Loss 25,596 Open Expense (438) S/S $ 5,224,191 OPEN 11/79 Aetna (PD) $ $ 564,000 Open Loss 300,000 Open Expense 864,000 OPEN 10/81 Texas Employers (EL) 2,100,000 Open Loss $ 2,100,000 OPEN **11/81 SelfInsured (PD) $ $ 550,000 Paid Loss 20,846 Paid Expense 570,846 CLOSED ** 3/81 Aetna (BI) $ 1,895,003 Paid Loss (PD) 10,368 Paid Loss 23,863 Paid Expense (1059) S/S $ 1,928,175 CLOSED * Valuation Dates: 7-01-86 FFA 6-30-86 Aetna 9-10-86 Texas Employers** ** Losses incurred by divisions divested by Dow. NARRATIVE OTHER LIABILITY Bell, R.M, premises injury . OTHER LIABILITY Pittsburg, CA Mixing tank exploded - two killed PRODUCT - CHLORINE Canada - Mississauga Train Derailment EMPLOYERS LIABILITY Jones, etal Polyethylene Explosion OTHER LIABILITY Hiawatha Oil Co., Inc. - well damage AUTOMOBILE LIABILITY Rose - lost control, struck claimant and claimant's vehicle 00 1,24065 CONFIDENTIAL F 192002 APPENDIX G-II Page 3 of 3 THE DOW CHEMICAL COMPANY MAJOR LOSSES EXCESS OF $500,000 FROM FIRST DOLLAR (EXCLUDING U.S. PRODUCTS) VALUATION DATES: JUNE 30, 1986, JULY 1, 1986 AND SEPTEMBER 10, 1986* F 192003 DATE OF OCCURRENCE **12/81 COMPANIES Aetna (BI) $ $ STATUS 599,999 Paid Loss 44,998 Paid Loss 644,997 CLOSED ** 6/82 Aetna (BI) $ $ 705,350 Paid Loss 40,620 Paid Expense 745,970 CLOSED 9/82 Aetna (BI) $ $ 798,751 Paid Loss 798,751 CLOSED ** 3/83 Aetna (PD) $ $ 800,000 Paid Loss 34.971 Paid Expense 834,971 CLOSED ** 9/83 Aetna (PD) $ 705,401 Paid Expense 3,000,000 Open Loss 294,599 Open Expense $ 4,000,000 OPEN ** 2/84 Aetna (PD) $11,500,000 Paid Loss 416,302 Paid Expense $11,916,302 CLOSED ** 1/84 Aetna (PD) $ 1,500,000 Paid Loss $ 1,500,000 CLOSED * Valuation Dates: 7-01-86 FFA 6-30-86 Aetna 9-10-86 Texas Employers ** Losses incurred by divisions divested by Dow. NARRATIVE OTHER LIABILITY Sara Brinkley Medical Malpractice ' > AUTOMOBILE LIABILITY J. Jones - turning; Claimant passing in no passing zone AUTOMOBILE LIABILITY J. & M. Johnson passing hit motorcycle OTHER LIABILITY Hughes & Hughes well damage OTHER LIABILITY OJB, Inc. - well damage OTHER LIABILITY Challenger Ltd. well damage OTHER LIABILITY Exxon - well dama DO 12406A OONF JOjHNTT Al. APPENDIX G- III Page 1 of 3 U.S. THE DOW CHEMICAL COMPANY PRODUCTS LOSSES EXCESS OF $500,000 FROM FIRST DOLLAR (EXCLUDING BENDECTIN AND SARABOND) VALUATION DATE: September 24, 1986 DATE OF OCCURRENCE 5/77 COMPANIES Dorinco 6/77 Dorinco 6/77 Dorinco 7/77 Dorinco 8/77 Dorinco 10/77 Dorinco 10/77 Dorinco *12/77 Aetna 6/78 Dorinco STATUS PRODUCT/CLAIMANT* (BI) $ $ 652,951 Paid Expense 50,000 Open Loss 702,951 OPEN 2, 4, 5-T Grenier (PD) $ $ 230,000 Paid Loss 304,372 Paid Expense 534,372 CLOSED STYROFOAM SM Mountain Pride Farm's i (BI) $ $ 750,000 Paid Loss 31,250 Paid Expense 781,250 CLOSED FUMAZONE Castro, C. /\u (BI) $ 1,300,000 Paid Loss 31,250 Paid Expense $ 1,331,250 CLOSED FUMAZONE Perez, R. ! i (BI) $ $ 637,214 Paid Loss 31,250 Paid Expense 668,464 CLOSED FUMAZONE Sarras, S. (PD) $ 725,000 Paid Loss STYROFOAM 524,850 Paid Expense . Holly Creek Fryers $ 1,249,850 CLOSED (BI) $ $ 498,500 Paid Loss 31,250 Paid Expense 529,750 CLOSED FUMAZONE M /> \i V Jones, Deborah ' (BI) $ $ 1,900 Paid Expense 750,000 Open Loss 98,100 Open Expense 850,000 OPEN (PD) $ 1,325,000 Paid Loss 836,919 Paid Expense $ 2,161,919 CLOSED DPT VACCINE Harwig, A. D ERAS PAN l/ Stouffer Foods F 192004 *Richardson-Merrell Claim DO 174067 CONFIDENTIAL DATE OF OCCURRENCE U.S. APPENDIX G * in Page 2 of 3 THE DOW CHEMICAL COMPANY ` OCCURRENCE EXHIBIT PRODUCTS LOSSES EXCESS OF $500,000 FROM FIRST DOLLAR VALUATION DATE: September 24, 1986 ~n VO INJ O O 07 / COMPANIES STATUS PRODUCT/CLAIMANT 9/78 *1/79 *1/79 *1/79 2/80 3/80 7/80 8/80 3/81 Dorinco Self-Insured Self-Insured Self-Insured Dorinco Dorinco Dorinco Dorinco Dorinco 4/81 4/81 Dorinco Dorinco *Richardson Merrell Claim (BI) $ $ 750,000 Paid Loss 153,323 Paid Expense 903,323 CLOSED STYROFOAM Boyer, Robert Etal (BI) $ $ 500,000 Open Loss 60,000 Open Expense 560,000 OPEN CLOMID Love (BI) $ 1,000,000 Open Loss 1 . yfbMID 50,000 Open Expense ><WWilliams, Ryan W. $ 1,050,000 OPEN (BI) $ 1,000,000 Open Loss f^^LOMID 50,000 Open Expense V Williams, Devin W. $ 1,050,000 OPEN vv (PD) $ 650,000 Paid Loss SARAN CEMENT ADDITIVE 77 112 Paid Expense Blakeslee Prestress $ 650,112 CLOSED (PD) $ $ 902,070 Paid Loss' 30,254 Paid Expense 932,324 CLOSED J (PD) $ 1,531,064 Paid Loss 154,109 Paid Expense $ 1,685,173 CLOSED DURSBAN 44 Eastern Breeders Co. (Of- DURSBAN 44 Coale 6c McCarty ' i.if (PD) $ $ 694,502 Paid Loss 694,502 CLOSED , (PD) $ V 87,079 Paid Expense 1,250,000 Open Loss 137,921 Open Expense $ 1,475,000 OPEN VORACEL C Manufacturer's Life DER 330 Plasta - F 1 s (BI) $ $ 507,471 Paid Expense 70,000 Open Loss 577,471 OPEN (BI) $ 488,271 Paid Loss 140,631 Paid Expense 450,000 Open Loss 49,369 Open Expense $ 1,128,271 OPEN TORDON 10K, SALT Viterbo CAUSTIC SODA Lunsford j ( DO DONF 724068 JOfrNr ta/,, : F 192006 APPENDIX G - in Page 3 of 3 U.S. THE DOW CHEMICAL COMPANY OCCURRENCE EXHIBIT PRODUCTS LOSSES EXCESS OF $500,000 FROM FIRST DOLLAR VALUATION DATE: September 24, 1986 DATE OF OCCURRENCE COMPANIES STATUS PRODUCT/CLAIMANT 7/81 10/81 Dorinco Dorinco 12/81 Dorinco 2/82 Dorinco 2/82 Dorinco (PD) $ $ 750,000 Paid Loss , J29.848 Paid Expense 779,848 CLOSED VORACEL C Trend Carpet Mills (BI) $ $ (PD) $ $ 474,040 Paid Expense 50,000 Open Loss 25,960 Open Expense 550,000 OPEN CHLOROTHENE NV Hesslink r 43,432 500,000 31,568 575,000 Paid Expense'G'Open Loss J Open Expense OPEN STYROFOAM BTM Development (BI) $ $ 13,015 Paid Expense 500,000 Open Loss 36,985 Open Expense 550,000 OPEN' CLOMID " Altman, Kara (BI) $ 429,748 Paid Expense 1,200,000 Open Loss 120,252 Open Expense $ 1,750,000 OPEN PELAMAG Rogers, Etal 9/82 -/ / 11/83 Dorinco Dorinco 1/85 Dorinco (PD) $ 71,249 Paid Expense 2,000,000 Open Loss 228,751 Open Exoense $ 2,300,000 OPEN THURANE Simplot (PD) $ (BI) $ 12,000 Paid Loss 612,562 Paid Loss 64,931 Paid Expense 689,493 CLOSED STRY0F0AM BB Mann, Etal $ 4,822 Paid Expense LORSBAN 4 500,000 Open Loss Wiggin, Etal 13,678 Open Expense $ 518,500 OPEN 00 124069 cONFTDE/\j TTAl,. THE DOW CHEMICAL COMPANY LITIGATION SECTION APPENDIX H 20. The Litigation Section of Dow's Legal Department is staffed by 8 attorneys, 7 claims specialists, 6 paralegals, an M.D. medical consultant, and a Ph.D. technical advisor (Agricultural Products), all of whom are directly involved in managing product claims and litigation against the Company. In addition, a staff of 11 full time employees are engaged in managing document collections, computer input and document productions. This staff is supplemented by up to 60 temporary employees who work on document projects as needed. Although Dow lawyers do not typically represent the Company at trial, the Dow approach to litigation management is one of detailed involvement. The Litigation Section has been using computerized litigation support systems in document productions for about 10 years. In addition, Section management utilized a computerized system to track loss reserves, expenses, trial dates and other information relevant to good case management. This system provides a means to determine litigation trends by geographical area and product, in addition to helping focus attention on high priority cases. All cases are periodically reviewed by a Litigation Review Committee of senior Dow lawyers, chaired by the General Counsel. F 192007 00 COhjp* ?40?r TtAl \IrA '&>rV r,, '/ \ *''->&*5*'-<:Vr'*l, ' . ' f ?:& ` " . . .- , t T;*-r-j L L-'JryJffcj.SNaX -V;V '#* . t** APPLICATION DO 174071 CONFIDENTIAL Marsh & Mciennan UMBRELLA POLICY APPLICATION 1. Full name of Applicant (include all companies to be insured): DOW CORNING CORPORATION Notes: (a) Give details of any operations for which coverage is not required: ALL OPERATIONS ARE TO BE COVERED (b) If the companies to be insured are not the Parent Company, please give name of the Parent Company. NOT APPLICABLE 2. Address of: (a) Head Office: 2200 W. Salzburg Road Auburn, MI 48611 (b) Main Locations of Operations: MIDLAND, MICHIGAN CARROLLTON, KENTUCKY ELIZABETHTOWN, KENTUCKY GREENSBORO, NORTH CAROLINA HEMLOCK, MICHIGAN SPRINGFIELD, OREGON ARLINGTON, TENNESSEE FREELAND, MICHIGAN BRUSSELS, BELGIUM VALBONNE, FRANCE MUNICH, WEST GERMANY WIESBADEN, WEST GERMANY CAMPINAS, BRAZIL CHUNGJU, KOREA TRUMBULL, CONNECTICUT SAN MARTIN, MEXICO KANAGAWA, JAPAN CHIBA, JAPAN FUKUI, JAPAN BLACKTOWN, AUSTRALIA CHUNGLI, TAIWAN BARRY, WALES JOHANNESBURG, SOUTH AFRICA NORCROSS, GEORGIA DO 1.24072 CONFIDENTIAL FI 92009 F 192010 3. Estimate of: 1P86 (a) Annual Payroll $220,199,000 (b) Annual Receipts or Sales (1) DOMESTIC $ 575,200,000 (2) FOREIGN 493.300.000 TOTAL $1 ,068,500,000 (c) Number of Employees 6,450 (4030 in USA) 4. Description of all Operations MANUFACTURE AND SALE OF SILICONES, SILICON METAL AND SPECIALITY LUBRICANTS 5. Describe all the products manufactured, handled, distributed or sold under the following classifications: Classification Description Annual Sales a) Aircraft Products 15,400,000 b) Pharmaceuticals 11,000,000 c) Chemicals 53,100,000 d) Any Other Products 6. (a) State (i) Estimated Advertising Expenditure per annum $10,058,000 (ii) Advertising Media used and proportion of Expenditure on each MAGAZINES AND NEWSPAPER - 80% ALL OTHER - 20% (B) Is Advertising Agency employed?...Yes...if 'yes' state if Applicant is included as Additional Insured under Agency's primary policies or protected by Hold Harmless Agreement. NO TO BOTH DO 124073 CONFTDFNTTAL FI 9201 1 7. State separately number and type of owned and leased automobile vehicles specifying: (a) Separately, number of Passengers Cars, Trucks and Tractor-Trailers. PASSENGER CAPS USA OTHER 506 357 (INCLUDES 158 VEHICLES UNLICENSED AND ASSIGNED TO PREMISES) TOTAL 863 TRUCK/TRACTOR TRAILER 1 (b) Type of Cargo hauled with full details where inflammable and/or explosive substances are involved. FLAMMABLE SUBSTANCES TRANSPORTED BETWEEN DOW CORNING AND DOW DISPOSAL FACILITIES APPROXIMATELY 10 MILES. (c) Details of long haul (over 50 miles) operations. NO LONG HAUL OPERATIONS 8. State separately (a) Number of owned and leased Aircraft with individual description of each unit. 1979 BEECH KING AIR 200 1981 FALCON 10 1985 FALCON 200 OWNED OWNED LEASED SEATING CAPACITY 8+2 CREW 6+2 CREW 10+2 CREW (b) Give details of any facilities maintained for the purpose of servicing, repairing or refueling aircraft and state whether these facilities would be made available for operations on aircraft of others. DOW CORNING LEASES ONE HANGER AT TRI-CITY AIRPORT LOCATED NEAR MIDLAND, MICHIGAN. SERVICES AND MAINTAINS DOW CORNING AIRCRAFT ONLY. NO REFUELING. 00 124074 CONFIDENTIAL F 192012 9. State number and type of watercraft, specifying: NONE (a) If owned, leased or chartered (b) Passenger and/or larger capacity (c) Type of cargo (d) Navigational Limits (e) Type of Charter 10. Give details of any docks, ports, wharves or quay facilities. OWN LANDING AND MOORING FACILITY ON OHIO RIVER AT CARROLLTON,' KENTUCKY. PRIMARY INSURANCE IS CARRIED. 11. Give details of any railroad facilities. NONE OTHER THAN SIDE TRACKS 12. State details of operations carried out away from owned or leased premises (construction or installation work, etc.) specifying: (a) amount of work sub-contracted and details of insurance carried by sub-contractor (b) nature of projects and/or contracts involved. REFER TO APPENDIX A 13. State details including separate values and Fire/Extended Coverage rates of: (a) Leased Premises with values in excess of $25,000 where Applicant is not held harmless or named as additional Insured in premises owner's Fire/Extended Coverage Policy NONE EXCESS OF $100,000 WHERE NOT HELD HARMLESS OR NAMED 124075 C0NpTC)ENTTAl (b) Any other property of others in the Applicant's Care, Custody or Control where values are likely to exceed $25,000 at any time. NONE KNOWN 14. State details of written contractual agreements other than liability assumed under any lease of premises, easement agreement, agreement required by municipal ordinance, side-track agreements and elevator escalator maintenance agreement. NORMAL TO BUSINESS 15. Has the Applicant any exposure under the following legislation?...No.... If 'Yes' specify which and give separate payrolls. (a) Jones Act or Admiralty Jurisdiction (b) Federal Railroad Employers Act (c) Federal Longshoreman's and Harbour Workers Act 16. Describe any malpractice exposures, together with: (a) Number of Doctors employed 1 (b) Number of Nurses employed 5 (c) Facilities maintained FACILITIES ARE MAINTAINED FOR EMPLOYEES EMERGENCY AND HEALTH MAINTENANCE PURPOSES AT MIDLAND, MICHIGAN AND BARRY, WALES LOCATIONS. ALL OTHER MAJOR DOW CORNING LOCATIONS USE EMERGENCY MEDICAL SERVICES AND CONTRACT PHYSICIANS. (d) Any malpractice exposures other than medical. NONE 17. Give details of any exposure under any liquor law. HOST LIQUOR LIABILITY 1.24076 CONFTDFNTTAI. F 192013 18. (a) Give details of any insurance the Applicant intends to purchase as respects the Underlying Amounts and details of any insurance that may be in force that would act in the same manner. REFER TO APPENDIX B (b) Give details of any non-standard exclusions contained therein. EXCLUSIONS CONTAINED IN THE INSURANCE LISTED ARE CONSIDERED TO BE STANDARD. 19. State loss record during the past ten years specifying: (a) Full details of all claims inclusive of expenses (whether insured or not) in excess of $500,000 (enter full amount for first dollar for each case). (b) The organization who has evaluated any outstanding amounts and the date of the said evaluation. REFER TO APPENDIX C 20. Has the Applicant ever handled his own losses in any self-insured areas and if so give details of such loss handling. REFER TO APPENDIX D DATE November 6, 1986 DO 124077 CONFIDENT T A1 F 192014 F1920 15 APPENDIX A DOW CORNING CORPORATION 12.(a) & (b) ODC Inc. of Atlanta, Georgia became a wholly owned subsidiary of Dow Corning effective April 1, 1984. ODC Inc. has been manufacturing silicone-coated architectural fabrics and marketing roof systems for tension supporting structures. Estimated sales for ODC Inc. in 1986 total $6,900,000 including approximately $2,200,000 for work subcontracted out, representing mainly engineering and installation services. Subcontractors are subject to compliance with standard insurance provisions consistent with type and size of project. 00 1?4078 CONFIDENTIAL APPENDIX B DOW CORNING CORPORATION SCHEDULE OF UNDERLYING INSURANCES F 192016 1. General Liability including Automobile, Products, Watercraft and Medical Malpractice including Optometrists - (U.S. and Canada) - including Employees as Additional Insureds, Employee Benefits Liability, Host Liquor Liability and Advertising Injury Liability C.S.L. B.I. and/or P.D. $3,000,000 each occurrence $3,000,000 aggregate where applicable Claims Made CARRIER Hartford 2. General Liability including Products - fForeign^ $1,000,000 each occurrence $1,000,000 aggregate where applicable Occurrence AIU 3. Excess General Liability including Products, Watercraft and Malpractice Following Form of Primary excluding Auto - fForeign') C,S.L. B.I. and/or P.D. $4,000,000 each occurrence $4,000,000 aggregate where applicable Occurrence ZURICH 4. Excess General Liability including Products, Watercraft and Malpractice Following Form of Primary excluding Auto - (Domestic) C. S. L. B. I. and/or P.D. $2,000,000 each occurrence $2,000,000 aggregate where applicable Claims Made DEVONSHIRE $1,000,000/$l, 000, OOQf $1,000,000 HARTFORD Aircraft Liability (owned and Non-Ownad) C.S.L, B.I, and/or P.D. Including Admitted Liability $50,000,000 Hanger Keepers $100,000/$200,000 U.S.A.I.G Landing Owners Legal $5,000,000 each occurrence I.N.A. rAMt-1'*4080 ooNPropNrrAi APPENDIX C DOW CORNING CORPORATION 19* Losses Excess of $500,000 From First Dollar DATE OF OCCURRENCE 11/81 COMPANY Hartford STATUS (BI) $206,399 Paid Expense 250,000 Open Loss 43.601 Open Expense $500,000 OPEN NARRATIVE PRODUCT - MAM PROS Stern, M. Human Adjuvant Disease *In addition, $1,500,000 in Punitive Damages was awarded in the State of California. Under California law, punitive damages are not insurable. AGGREGATE GENERAL LIABILITY INCLUDING PRODUCTS FROM FIRST DOLLAR - OCCURRENCE BASIS POLICY YEAR TOTAL INCURRED 76 465,588 77 352,844 78 617,562 79 854,481 80 1,084,481 81 1,932,717 82 2,142,940 83 2,106,258 84 2,346,063 85 2,036,859 DO 124081 CONFTDFNTTAl. f719 2 0 1 8 F 192019 APPENDIX D DOW CORNING CORPORATION 20. Currently, losses under the Dow Corning insurance programs are being handled by primary insurance carriers. The only exception is with regards to Products Liability losses. Products liability property losses up to $5,000 are handled by Dow Coming's legal staff. Losses valued between $5,000 and $25,000 may be handled by the Dow Corning legal staff with approval from the primary carrier. dowexapp Do CONFIDENTIAL National Indemnity Company Policy No. EL 50522 NAMED INSURED: THE DOW CHEMICAL COMPANY, et al. EFFECTIVE DATE: December 1, 1986 ENDORSEMENT NO. 3 GENERAL CHANGE ENDORSEMENT This endorsement changes Policy No. EL 50522 of National Indemnity Company. These changes are effective December 1, 1986, the inception date of the policy, as follows: A. It is understood and agreed that subsection A of the section of the Declarations titled UNDERLYING PRIMARY INSURANCE is amended to read as follows: "UNDERLYING PRIMARY INSURANCE A. The Dow Chemical Company and subsidiaries shall insure or retain the following primary coverages: 1. General Liability including Products/Completed Operations Hazard Liability (other than U.S.A. Products Liability), Automobile Liability, Watercraft Liability (respects Barges, Scows, Lighters, Tugs, Launches and similar Watercraft) in rem, Airport Liability, Hangar Liability, Professional Liability, Malpractice Liability, Employee Benefits Liability, Blanket Contractual and Care, Custody and Control other than owned or transported: $5,000,000 combined single limit, exclusive of Claims Expenses, for each and every Occurrence. 2. U.S.A. Products Liability: a. $500,000 combined single limit, inclusive of Claims Expenses, for each and every Occurrence and all Claims Expenses in excess of $500,000 for each and every Occurrence. b. In excess of Subsection 2(a) above, $4,500,000 combined single limit (inclusive of Claims Expenses not exceeding $500,000 for each and every Occurrence) for each and every Occurrence up to an annual aggregate limit of $20,000,000. 3. a. Employers Liability, Employers Liability Occupational Disease including Federal Longshoreman's and Harbor Workers Act and Jones Act: $5,000,000 Bodily Injury by Accident/Each Accident. Page 21 of 23 DO 1.24083 CONFIDENTIAL F 192022 National Indemnity Company Policy No. EL 50522 $5,000,000 Bodily Injury by Disease/Each Employee. $5,000,000 Bodily Injury by Disease/Policy Limit. 4. Aircraft Liability - Owned and Non-Owned: $200,000,000 combined single limit including admitted liability." B. It is further understood and agreed that the section of the Declarations titled CLAIMS EXPENSES is amended to read as follows: "CLAIMS EXPENSES With respect to any Occurrence covered by the terms and conditions of this Policy and subject to the Aggregate Limits of Insurance, inclusive of Claims Expenses, of this Policy the Insurer shall: 1. Pay that proportion of Claims Expenses incurred by the Named Insured that is the same proportion as the indemnity payments assigned to this excess layer are to the total indemnity payments, excluding U.S.A. Products Liability for The Dow Chemical Company and subsidiaries; and 2. For U.S.A. Products Liability of The Dow Chemical Company and subsidiaries and subject to a maximum amount of $500,000 Claims Expenses per Occurrence assigned to the Underlying Primary Insurance and this policy layer, pay Claims Expenses which exceed the Underlying Primary Insurance per Occurrence and/or aggregate limits for U.S.A. Products Liability of The Dow Chemical Company and subsidiaries." C. It is further understood and agreed that the paragraph numbered 3 under "PERSONS INSURED" is amended to read as follows: "3. The Insured's joint ventures and partnerships with respect to Occurrences arising out of or in connection with such joint ventures or partnerships subject to: a. Joint ventures and partnerships for whom the Insured is contractually obligated to provide insurance shall be considered as Additional Insureds under this Policy. F 192023 Page 22 of 23 DO CONP " f719 2 0 2 4 National Indemnity Company Policy No. EL 50522 b. Joint ventures and partnerships for whom the Insured is not contractually obligated to provide insurance shall be considered as Additional Insureds under this Policy, Provided, However, that the Company shall not be liable for a greater percentage of any Loss arising from an Occurrence arising out of a joint venture or partnership than the percentage of the Insured's equity interest in said joint venture or partnership." D. It is further understood and agreed that the paragraph numbered 3 under "DEFINITIONS" shall be deleted. This deletion shall not imply that the definition of "Claim" in the Policy is, in any way, incorrect. E. It is further understood and agreed that the paragraph numbered 9 under "DEFINITIONS" shall be deleted. This deletion shall not imply that the definition of "Policy" in the Policy is, in any way, incorrect. All other terms and conditions of the Policy remain unchanged. IN WITNESS WHEREOF, the Company has caused this Endorsement to be executed and attested. nationa: " PANY ATTEST: (L-. Assistant Secretary By: Vice Pr ssident Page 23 of 23 F 192020 Marsh & Mclennan Marsh & McLennan One Woodward Avenue, Suite 1200 Detroit, Michigan 48226-3493 Telephone 313 965-5400 August 30, 1988 /n ' ECEIVE SEP 0 i 1988 INSURANCE DEPARTMENT Mr. John C. Gorte Manager, Liability Insurance Corporate Insurance Department The Dow Chemical Company 2030 Dow Center Midland, MI 48674 Re; Umbrella Excess Program National Indemnity Policy No. EL5D522 Period: December 1, 1986 to December 1, 1987 Dear Johnt National Indemnity has corrected all of the items mentioned in my letter dated November 12, 1987. Enclosed is Endorsement No. 3 which corrects the following items: 1. Underlying Schedule of Insurance for DOW a) amended to include "Completed Operations" to the list of hazards b) reference to Landing Dock Liability deleted 2. Claims Expenses - Page 5 -- The phrase "Completed Operations" has been deleted from Paragraphs 1 and 2. 3. Persons Insured - Page IQ - Section 3 -- Joint Ventures has been amended in accordance with the previous policy. 4. Definitions - Page 14 -- Deletion of the definition of "Claim"; however, National Indemnity states that by deleting this it does not imply that it is incorrect. 5. Definitions - Page 15 -- Deletion of the definition of "Policy"; however, National Indemnity states that by deleting this it does not imply that it is incorrect. DO 1. ?4086> CONFTDFNTTAI. F 192021 Marsh & McLennan, Incorporated Mr. John C. Gorte The Dow Chemical Company August 30, 1988 Page Two Lastly, included is a copy of National Indemnity's letter of June 20, 1988 advising that the application is not a part of the policy. We trust you will find the enclosed in order. Sincerely, Assistant Vice President JS s vam Enclosure 00 124087 OONFTDFNTTAl National Indemnity Company SPECIALTY LINES * UNUSUAL RISKS June 20, 1988 Mr. John E. Anderson Vice President Marsh & McLennan One Woodward Avenue, Suite 1200 Detroit, Michigan 48226 Re: The Dow Chemical Company Policy No. EL 50522 Dear John: In response to your November 16, 1987, letter and our conversation of last month, enclosed please find National Indemnity Company Endorsement #3 to Its policy number EL 50522. I thank you for your patience on this matter. The endorsement makes the changes agreed to in our conversation last month. In addition, confirming our conversation of last month, we agreed that the Application was not a part of the Policy, but that the Policy was issued by National Indemnity Company in reliance upon the representations in the Application. When we discussed the endorsement last month, I also mentioned to.you my request to Marsh & McLennan for updates on the pending Dow claims. Ms. Wysocki of your office did provide me with the limited information which was available to her last month and indicated that she would seek to update us on the remaining claims from Dow. I would appreciate your assistance in obtaining Information from Dow on the status of the pending Dow claims. Very truly yours FNK:td Enel. Forrest N. Krutter Legal Counsel F 192025 3024 Harney Street Omaha, Nebraska 68131-3580 Telephone (402) 346-7400 Telex: 5101006904 Easylink Mailbox: 62883038 Claim Department 4016 Farnam Street Omaha, Nebraska 68131-3095 Telephone (4021 346-7400 A Member of the Berkshire Hathaway Insurance Group HO 124088 CONFIDFNTTAI