Document jgg05ByBvBaV1NojxvRQ6o6gp

A U h HR O M ^ m o Ib /tfte - ( o f i j l t N18760 GLD058879 0049-GLD-000058879 iLmIA mB IL uIT Y -ME XrCtEr SS ie e 9 /3 0 /9 1 THIS IS A REPORTED OCCURRENCE POLICY WHICH CONTAINS CERTAIN FEATURES THAT ARE ANALOGOUS TO THE ONES FOUND IN CLAIMS MADE POLICIES. PLEASE READ THE ENTIRE POLICY CAREFULLY. EXCESS INDEMNITY POLICY INSURANCE UNDER THIS POLICY IS PROVIDED BY SEVERAL SEPARATE INSURERS, WHO ARE ALL MEMBERS OF THE AMERICAN EXCESS INSURANCE ASSOCIATION. THE LIABILITY OF THESE INSURERS IS SEVERAL AND NOT JOINT AND IS SET OUT SPECIFICALLY IN ENDORSEMENT NUMBER 1 WHICH IS ATTACHED TO AND FORMS PART OF THIS POLICY. American Excess Insurance Association Words and phrases that appear in all capita} tetters have the special meanings set forth in Section V-DEFINITIONS. DECLARATIONS POLICY NUMBER: HR000043990 Item Is NAMED INSURED: HANSON INDUSTRIES Address of NAMED INSURED: 410 PARK AVENUE NEW YORK, NY 10022 Item 2: COMPANY'S Limit of Liability under this POLICY in the aggregate for all covered OCCURRENCES: $75,000,000.00 part of $75,000,000.00. See Endorsement Number 1 to this POLICY. Item 3: PER OCCURRENCE UNDERLYING AMOUNT: $25,000,000.00 "DEFENSE EXPENSES'* ARE INCLUDED IN THE LIMITS OF LIABILITY OF THE POLICY AND ARE IN THE "PER OCCURRENCE UNDERLYING AMOUNT" ABA 1-NY 11 of 16) GLD058880 0049-GLD-000058880 Item 4: POLICY PERIODS From: 12:01 A.M.* on the 1st day of October, 1990. ("Inception Date"). To: 12:01 A.M.* on the 1st day of October, 1991. ("Expiration Date"). Item 5: RETROACTIVE DATE: 12:01 A.M.* on the 1st day of October, 1986. Item 6: Flat Premium for the POLICY PERIOD: $1,365,000.00 Item 7: Representative of COMPANY: Farmington Management, Inc. RiverBend Executive Park 77 Hartland Street East Hartford, CT 06108 Attention: The President Item 8: Representative of NAMED INSURED: DIRECTOR OP RISE MANAGEMENT HANSON INDUSTRIES 99 WOOD AVE, SOUTH ISELIN, NJ 08830 Item 9: Endorsements attached at POLICY issuance: 1. Liability of Insurers Endorsement, AEIA-2 2. Pollution Exclusion Revision Endorsement, AEIA-35 3. New York Mandatory Endorsement, AEIA-S-6 Am6ss sociation Countersigned by (Authorized Representative) `Standard Time at the address of the NAMED INSURED as stated herein. AEIA 1 -NY REV. A . .[2 Of .15]............ _ GLD05QQS1 0049-GLD-000058881 Insuring Agreements In consideration of the payment of fie premium and in reliance on ail statements made and information furnished by the NAMED INSURED to the COMPANY, including Vie representations and warranties made in the Application for this POLICY, hereby made a part hereof, and subject to the foregoing Declarations, hereby made a part hereof, and to all of the terms of this POLICY, the COMPANY and the NAMED INSURED agree as follows: L COVERAGE (a) The COMPANY shall Indemnify the INSURED for ULTIMATE NET LOSS which the INSURED shall become legaly obligated to pay by reason of liability imposed upon the INSURED by law or liability of others assumed by the INSURED under contract or agreement because of PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE anywhere in the world, (1) which results from an OCCURRENCE, notice of which shall have been first given to the COMPANY (in accordance wifi Condition (c) hereof): (A) by the NAMED INSURED during the POLICY PERIOD; (B) by the NAMED INSURED during any EXTENDED REPORTING PERIOD which the NAMED IN SURED shall have elected to secure (or continue) in accordance with the following paragraph 1(b); or (C) by any former subsidiary or affiliate of the NAMED INSURED during any EXTENDED REPORTING PERIOD fiat may arise in accordance with Condition (m) hereof; and (2) for which a CLAIM Is made against the INSURED, and of which CLAIM the NAMED INSURED has given written notice to the COMPANY, within ten (10) years from the effective date of cancellation of the POLICY or the Expiration Date stated in Item 4 of the Declarations irrespective of whether: (A) the notice of OCCURRENCE in paragraph 1(a)(1) above was given during the POLICY PERIOD; or (B) such notice was given during the EXTENDED REPORTING PERIOD; provided, however, that in no event shall there be coverage under this POLICY for any liability of any INSURED with respect to any OCCURRENCE, PERSONAL INJURY, PROPERTY DAMAGE or ADVERTIS ING OFFENSE for which there is, or but for the issuance of this POLICY would be, any coverage in any amount provided under any other policy issued by the COMPANY to the INSURED irrespective of whether such other policy is issued prior to. simultaneously with or subsequent to this POLICY. (b) In the event of cancellation or nonrenewal of this POLICY by the NAMED INSURED or the COMPANY other than cancellation for nonpayment of premium, foe NAMED INSURED may elect to secure an EXTENDED REPORTING PERIOD for an ANNUAL PERIOD, and thereafter may elect annually to continue such EXTENDED REPORTING PERIOD for no more than four (4) additional ANNUM. PERIODS, for such INSUREDS as foe NANED INSURED shall designate, by giving the COMPANY written notice of such election not less than ten (10) days prior to the effective date of cancellation of the POLICY or foe Expiration Date stated In Item 4 of foe Declarations, or the expiration date of each ANNUAL PERIOD, and by paying to the COMPANY the applicable annual premium as set forth in the attached Schedule 8 no later than the date of commencement of each ANNUAL PERIOD of such EXTENDED REPORTING PERIOD. Where notice of an OCCURRENCE is first given, in accordance with Condition (c), during such EXTENDED REPORTING PERIOD, it shall be deemed to have been given during the POLICY PERIOD of this POLICY for purposes of foe application of the terms of this POLICY including, but not by way of limitation, the COMPANY'S Limit of Liability and foe PER OCCURRENCE UNDERLYING AMOUNT. If. LIMIT OF LIABILITY (a) Subject to all foe terms hereof, the COMPANY shall indemnify the INSURED, in accordance with Condition (f), only for that amount of ULTIMATE NET LOSS, as provided for in Endorsement Number 1 to this POLICY, for any OCCURRENCE covered pursuant to paragraph l hereof, which ULTIMATE NET LOSS is in excess of foe greater of either: (1) ULTIMATE NET LOSS in the amount of the PER OCCURRENCE UNDERLYING AMOUNT; or (2) ULTIMATE NET LOSS with respect to any OCCURRENCE in foe amount covered by collectible OTHER INSURANCE; and then only up to the amount stated in Item 2 of the Declarations as the COMPANY'S Limit of Liability, which is the maximum amount payable by the COMPANY under this POLICY in foe aggregate ASA 1 {3 of 16] GliD058882 with respect to alt ULTIMATE NET LOSS arising from any and all OCCURRENCES, irrespective of the period over which any OCCURRENCE, loss, PERSONAL INJURY, PROPERTY DAMAGE or ADVER TISING OFFENSE occurs or the number of such OCCURRENCES, losses, PERSONAL INJURIES, PROPERTY DAMAGES or ADVERTISING OFFENSES and irrespective of whether the notice of OC CURRENCE is given during the POUCY PERIOD or during any applicable EXTENDED REPORTING PERIOD. (b) Only ULTIMATE NET LOSS which would be covered by this POUCY (if the terms of this POUCY were satisfied) but for the amount of such ULTIMATE NET LOSS and/or the existence of OTHER INSURANCE is included within the ULTIMATE NET LOSS referred to in paragraphs 11(a)(1) and (2) above. (c) Neither (1) the inclusion or addition hereunder of more than one INSURED; or (2) any EXTENDED REPORTING PERIOD secured in accordance with paragraph 1(b), and or arising in accordance with Condition (m) hereof; shall operate to reinstate or Increase the COMPANY'S Limit of Liability beyond that set forth in Item 2 of the Declarations or to extend the POUCY PERIOD. III. EXCLUSIONS This POUCY shall not apply to any liability or alleged liability of the INSURED for: (a) PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE for which the INSURED has as sumed fiabillty under any contract or agreement, if such PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE occurred prior to the time such contract or agreement became effective; (b) PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE in any manner arising out of the design, construction, maintenance, manning, ownership, operation or use of any WATERCRAFT; provided, however, that this Exclusion (b) shaff not apply with respect to WATERCRAFT or risks listed on Schedule D hereto and loading or unloading of any WATERCRAFT at premises owned, leased or controlled by the INSURED; (c) (1) PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE directly or indirectly arising out oft (A) the actual, alleged or threatened discharge, dispersal, release, seepage, or escape of any POLLUTANT into or upon any person, place or thing including the land or other real estate, any man-made structure, the atmosphere, any water or watercourse whether above or below ground or otherwise into the environment, however caused and whenever happening: or (8) any direction or request whether governmental or otherwise, that the INSURED evaluate, test for, monitor, clean up, remove, control, contain, treat, detoxify or neutralize any POLLUTANT or the actual, alleged or threatened discharge, dispersal, release, seepage or escape thereof; provided, however; except as provided in paragraph (2) of this Exclusion (c), that subparagraphs (1 )(A) and (8) of this Exclusion (c) shall not apply to PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE arising out of or alleged to arise out of such discharge, dispersal, release, seepage or escape and caused solely by: (C) unintended fire or explosion, or lightning; or (D) a collision or overturning of an AUTOMOBILE or railroad vehicle; (E) a single or intermittent discharge, dispersal, release or escape, which ceases within seven (7) days of its first commencement, of: (i) POLLUTANTS, other than herbicides, pesticides or defoliants, which constitute the IN SURED'S PRODUCTS; (ii) POLLUTANTS, other than herbicides, pesticides or defoliants, where such discharge, dis persal, release or escape is caused by or results from the INSURED'S PRODUCTS, other than products that are specifically designed, intended or marketed to evaluate, test for, monitor, treat, detoxify or neutralize POLLUTANTS; or (Hi) POLLUTANTS from premises owned, leased, rented or controlled by the INSURED; and provided that such discharge, dispersal, release or escape results in PERSONAL INJURY or PROPERTY DAMAGE which commences and is discovered within seven (7) days after the time such discharge, dispersal, release or escape first commences; ( ( ABA 1 14 of 16] GLD058883 0049-GLD-000058883 (2) The exception to subparagraphs (l)(A) and (B) of this Exclusion (c) which are contained in subpar agraphs (1)(C). (D) and (E) of this Exclusion (c), shall in no event apply to: (A) PROPERTY DAMAGE directly or indirectly arising out of: (i) underground or underwater operations of the INSURED; and/or (ii) removal of, loss of or damage to underground or underwater oil, gas or any other substance; (B) PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE directly or indirectly arising out of the handling, processing, treatment, storage, disposal, dumping, discharge, dis persal, release, seepage or escape of any WASTE; (C) the cost of evaluating, testing for, monitoring, cleaning up, removing, controlling, containing, treating, detoxifying and/or neutralizing the discharge, dispersal, release, seepage and/or escape of any POLLUTANT on property at any time owned, leased and/or rented by the INSURED and/ or under the control of the INSURED; and (D) PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE directly or indirectly arising out of the actual, alleged or threatened discharge, dispersal, release, seepage or escape of any POLLUTANT: (i) into any underground water or watercourse; or (ii) from any underground or underwater tank, piping or other container of any type; unless the immediate cause of such discharge, dispersal, release, seepage or escape is unin tended fire or explosion, or lightning; (d) ADVERTISING OFFENSE arising out of: (1) failure of performance of contract, other than the unauthorized appropriation of ideas based upon alleged breach of implied contract; (2) infringement of trademark, service mark or trade name, other than titles or slogans, by use thereof on or in connection with goods, products or services sold, offered for sale or advertised; (3) incorrect description or mistake In advertised price of goods, products or services sold, offered for sale or advertised; or I (4) the failure of goods, products or services to conform to advertised quality or performance; (e) (1) except in respect of PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE taking place in and caused by events and conditions occurring in the land area of the United States of America, its territories or possessions, or Canada, PERSONAL INJURY. PROPERTY DAMAGE or ADVERTISING OFFENSE directly or indirectly occasioned by, happening through or in consequence of war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation or nationalization or requisition or destruction of or damage to property by or under toe order of any government or public or local authority; (2) except in respect of PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE, taking place in and caused by events or conditions occurring in the land area of the United States of America, its territories or possessions, or Canada, PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE, not excluded by paragraph (1) of this Exclusion (e), which is caused by, results from or is attributable to toe INSURED'S PRODUCTS, which are used, designed or intended to be used for the purpose of inflicting PERSONAL INJURY or PROPERTY DAMAGE, and which PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE arises in connection with: (A) war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power; or (B) confiscation, nationalization, requisition or destruction of, or damage to, property in connection with or arising out of any of the situations listed in subparagraph (2)(A) of this Exclusion (e); (f) PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE arising out of asbestos, tobacco or tobacco products, ditwin, asbestifoim talc, diethyfstibesterol. urea formaldehyde or any intra-uterine device; (g) PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE arising out of the design, manu facture, construction, maintenance, service, use or operation of any AIRCRAFT, or any component part or equipment thereof, or any other airplane navigational or aviation related equipment; (h) PERSONAL INJURY or PROPERTY DAMAGE (1) with respect to which an INSURED under this POLICY is also an insured under a nuclear energy liability policy issued by Nuclear Energy Lability Insurance Association, Mutual Atomic Energy Liability AEIA t [5 of 16] GIiD058884 0049-GLD-000058884 Underwriters or Nuclear Insurance Association of Canada or any of their successors, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; (2) resulting from the "hazardous properties*' of "nuclear material'' and with respect to which (A) any person or organization Is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof: or (B) the INSURED is or, had this POLICY not been issued, would be entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization; (3) resulting from the "hazardous properties" of "nuclear material'', if (A) the "nuclear material" (i) is at any "nuclear facility'' owned by, or operated by or on behaif of, an INSURED or (ii) has been discharged or dispersed therefrom; (B) the "nuclear material" is contained in "spent fuel" or "waste" any time possessed, handled, used, processed, stored, transported or disposed of by or on behaif of an INSURED; or (C) the PERSONAL INJURY or PROPERTY DAMAGE arises out of the furnishing by an INSURED of services, materials, parts or equipment in connection with the planning, construction, mainte nance, operation or use of any "nuclear facility'', but if such facility is located within the United States of America, its territories or possessions, or Canada, this subparagraph (3)(C) applies only to "property damage" to such "nuclear facility" and any property thereat. As used fa this Exclusion (h): "hazardous properties" include radioactive, toxic or explosive properties; "nuclear material" means "source material", "special nuclear material" or "by-product material "; "source material", "special nuclear material" and "byproduct material" have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; "spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to racfiation in a "nuclear reactor"; "waste" means any waste material (1) containing "byproduct material" other than the tailings cr wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its "source material" content, and (2) resulting from the operation by any person or organization of any "nuclear facility" included under the first two paragraphs of the definition of "nuclear facility''; "nuclear facility" means: (1) any "nuclear reactor"; (2) any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium, (b) processing or utffizlng "spent fuel", or (c) handling, processing or packaging "waste"; (3) any equipment or device used lor the processing, fabricating or alloying of "special nuclear material" if at arty time the total amount of such material in the custody of toe 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 arty combination thereof, or more than 250 grams of uranium 235; (4) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of "waste"; and Includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations: "nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material; "property damage" includes all forms of radioactive contamination of property; (i) PERSONAL INJURY or PROPERTY DAMAGE directly or indirectly caused by or contributed to by or arising from ionising radiations or contamination by radioactivity outside the United States, its territories or possessions, or Canada from any nuclear fuel, any nuclear waste or from the combustion, fission or fusion of nuclear fuel; (j) PROPERTY DAMAGE to property rented to, used or occupied by or in the care, custody or control of the INSURED: (1} to the extent that the INSURED has agreed to provide insurance therefor: or (2) it such property is owned by any person or organization controlling or coming under toe control of the INSURED; AEIA 1 [6 of 161 GLD058885 0049-GLD-000058885 (k) (1) loss of use of tangible property which has not been physically injured or destroyed, resulting from: (A) a delay in or lack of performance by or on behalf of the INSURED of any contract or agreement; or (B) the failure of the INSURED'S PRODUCTS or OPERATIONS completed by or on behalf of the INSURED either to meet any warranty or representation by the INSURED as to the level of performance, quality, fitness or durability or to perform the function or serve the purpose intended by the INSURED; provided, however, that paragraph (1) of this Exclusion (k) shall not apply to loss of use of other tangible property resulting from the sudden and accidental physical Injury to or destruction of the INSURED'S PRODUCTS or OPERATIONS performed by or on behalf of the INSURED after such INSURED'S PRODUCTS or OPERATIONS have been put to use by any person or organization other than an INSURED; (2) PROPERTY DAMAGE to any portion or section of the INSURED'S PRODUCTS or of OPERATIONS completed by or on behalf of the INSURED, if such PROPERTY DAMAGE arises out of that portion of such products or that section of OPERATIONS, or out of materials, parts or equipment furnished in connection therewith; or (3) the withdrawal, inspection, repair, replacement, or, in connection with any of the foregoing, loss of use, of the INSURED'S PRODUCTS or OPERATIONS completed by or for the INSURED or of any property of which such INSURED'S PRODUCTS or OPERATIONS form a part, if such INSURED'S PRODUCTS, OPERATIONS or property are withdrawn from the market or from use because of any known or suspected defect or deficiency therein whether caused or believed to have been caused by tiie INSURED or by any other person or entity; (l ) any obligation for which the INSURED or any carrier as his insurer may be held liable under any workers' compensation, unemployment compensation or disability benefits law or the Longshoremen's and Harbor Workers' Compensation Act, or under any similar state or federal law; provided, however, that mis Exclusion does not apply to liability arising under the Federal Employers Liability Act or the Jones Act; (m) PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE resulting from an OCCURRENCE if notice of such OCCURRENCE has been given prior to the Inception Date stated in Item 4 of the Declarations under any policy which policy has expired prior to or upon the inception of this POLICY; (n) PERSONAL INJURY or PROPERTY DAMAGE arising out of cfiscrimination or humiliation directly or indirectly related to employment or prospective employment of any person or persons by any INSURED; (o) PERSONAL INJURY or PROPERTY DAMAGE directly or indirectly arising out of the actual or threatened termination of employment of any person or persons by any INSURED; (p) PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE and/or any liability of any nature whatsoever arising out of: (1) the purchase, sale or distribution of securities or offers to purchase or sell securities, or investment counselling or management inducting, without limitation, liability under the Securities Act of 1933, the Securities Exchange Act of 1934, the Trust Indenture Act of 1939, the Public Utility Holding Company Act of 1935, the Investment Company Act of 1940, and the so-called "blue-sky" laws of the various states or other jurisdictions or any laws amendatory of any thereof; (2) antitrust or the prohibition of monopolies, activities in restraint of trade, unfair methods of competition or deceptive acts and practices in trade and commerce including, without limitation, the Sherman Act, the Clayton Act, the Robinson-Patman Act, the Federal Trade Commission Act and the Hart* Scott Rodino Antitrust Improvements Act and the similar or equivalent laws of the various states or other jurisdictions; (3) fraud or breach of fiduciary duty; (4) governmental, civil or criminal fines or penalties; (5) toe failure to pay when due any governmental tax (including, without limitation, income, excise, property, value added and sales tax) or tariff, license fee or other governmental fee which is incidental to the conduct of business or any assessment, fine or penalty related thereto; (6) copyright, patent or trademark infringement (other than advertising liability with respect to titles or slogans); (7) any defect in or impairment to tiHe to real property, including fixtures, whether or not owned by an INSURED; AEIA 1 [7 of 161 GLD05Q886 (8) disclosure or other regulation of sales of, and offers to sell, real property; (9) employee, officer or director dishonesty or any Bability of any employee, officer or director of an INSURED to such INSURED. No inference shall be made from the excluaon of liabilities, PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE in any Exclusion that this POUCY wouid otherwise cover such liabilities, PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE or covers similar liabilities, PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE; nor shall any portion of any Exclusion to the POLICY be construed to be an extension of coverage otherwise provided by the POUCY. IV. CONDITIONS (a) Premium (1) The premiums under this POLICY are flat premiums and are not subject to adjustment, except as otherwise provided in paragraph (6) of Definition (j) and Condition (q) hereof. The premium shall be paid to the COMPANY. (2) Additional premium for an EXTENDED REPORTING PERIOD shall be fully earned, notwithstanding anything contained in this POUCY to the contrary, when the ANNUAL PERIOD to which such premium is applicable incepts. (b) Inspection and Audit (1) The COMPANY shall be permitted but not obligated to inspect the INSURED'S property and opera tions at any time. Neither the COMPANY'S right to make Inspections nor the making thereof nor any report thereon shall constitute an undertaking, on behalf of or for benefit of the INSURED or others, to determine or warrant that such property or operations are safe, healthful or in compliance with any Jaw, rule or regulation. (2) The COMPANY may examine and audit the INSURED'S books and records at any time while this POUCY is in force and within ten (10) years after the final termination of this POUCY or within one (1) year after final settlement of all claims arising out of any OCCURRENCE notice of which was given during the POUCY PERIOD or any EXTENDED REPORTING PERIOD, as far as they relate to the subject matter of this POUCY. (c) Notice of Occurrence or Claim {1) if any employee of the risk management or legal department or any officer or director of any INSURED shall become aware of an OCCURRENCE likely to involve this POUCY, the NAMED INSURED shall as soon as practicable, as a condition precedent to the rights of any INSURED under this POUCY. give written notice to the COMPANY which notice shall indude, but not be limited to, information as to the nature of the OCCURRENCE, the actual or anticipated injury or damage resulting therefrom, the name(s) of any claimant(s) or potential claimants) and the manner in which and the date on which the INSURED first became aware of the OCCURRENCE and such other detailed information as the COMPANY may reasonably request regarding the OCCURRENCE. Unless such written notice is provided as required herein, there shall be no rights to any coverage hereunder. (2) If any CLAIM likely to involve this POUCY is made against any INSURED, as a condition precedent to the rights of any INSURED under the POUCY, the NAMED INSURED shall, as soon as practicable, give written notice to the COMPANY of such CLAIM and. if written notice of the OCCURRENCE from which the CLAIM arises has not already been given, written notice, in accordance with paragraph (1) of this Condition (c), of the daimed or alleged OCCURRENCE with respect to which such CLAIM is made and shall promptly forward to the COMPANY copies of any written CLAIM, demand, notice, summons, complaint or other process received by toe INSURED or its representatives or agents. Unless such written notice is provided as required herein, there shall be no rights to any coverage hereunder. (3) Notice to the COMPANY shall be given to the person or entity stated in Item 7 of the Declarations and shall be deemed to be given when sent if sent by certified mail, return receipt requested, by telex with receipt acknowledged or by any express mailing service where a written receipt of sending is provided. ( ASIA 1 [8 of 16j GLD058887 0049-GLD-000058887 (d) Assistance and Cooperation The COMPANY shall not be called upon to assume charge of the settlement or defense of any CLAIM made against an INSURED but the COMPANY shall have the right and shall be given the opportunity to associate at its own expense with the INSURED or the issuers of OTHER INSURANCE or both in the investigation, settlement, defense and control of any CLAIM relative to any OCCURRENCE where the CLAIM Involves, or appears reasonably likely to involve, the COMPANY In which event the INSURED and the COMPANY shall cooperate in all things in the defense of such CLAIM. The INSURED shall enforce or cooperate with the COMPANY to enforce any right of contribution or indemnity against any person or organization who may be liable to the INSURED because of PERSONAL INJURY. PROPERTY DAMAGE or ADVERTISING OFFENSE with respect to which insurance is afforded imder this POLICY. In the event that the COMPANY, in its sole discretion, chooses to exercise its rights pursuant to this Condition (d), no action taken by the COMPANY in the exercise of such rights shall serve to modify or expand in any manner, the COMPANY'S liability or obligations under this POLICY beyond what the COMPANY'S liability or obligations would have been had it not exercised its rights under this Condition (d). (e) Appeals In tiie event the INSURED or the issuers of OTHER INSURANCE elect not to appeal a judgment in excess of the limits of liability of such OTHER INSURANCE, the COMPANY may elect to make such appeal at its own cost and expense and shall be liable for the taxable costs and disbursements and interest on judgments incidental thereto, but in no event shall the total liability of the COMPANY exceed its Limit of Liability stated in Item 2 of the Declarations plus the cost and expanse of such appeal. (f) Loss Payable (t) Indemnity under this POLICY with respect to any OCCURRENCE shall not attach unless and until the INSURED and/or the issuers of OWER INSURANCE shall have pad the greater of either: (A) ULTIMATE NET LOSS in the amount of the PER OCCURRENCE UNDERLYING AMOUNT: or (B) ULTIMATE NET LOSS with respect to any OCCURRENCE in the amount covered by collecttole OTHER INSURANCE; whichever is applicable, as provided In paragraph 11(a) hereof and, unless and until the INSURED'S liability shall have been fixed and rendered certain either by final judgment against the INSURED after trial or by settlement approved in writing by tine COMPANY. (2) The INSURED shall make a written demand for payment for any amount of the ULTIMATE NET LOSS for which the COMPANY may be liable under this POLICY as soon as practicable after the INSURED'S liability shall have been fixed and rendered certain and after such amount shall have been paid by or on behalf of the INSURED. If any subsequent payments shall be made by the INSURED on account of the same OCCURRENCE, additional written demands for payment should be made similarly from time to time. Such losses shall be due and payable by the COMPANY within a reasonable time after they are respectively demanded and proven in conformity with this POLICY. (3) No person or organization shall have any right under this POLICY to join the COMRANY as a party to any action against the INSURED, nor shall the COMPANY be impleaded by the INSURED or his legal representative. (g) Representation Such person or office as the NAMED INSURED shall designate in Item 8 of the Declarations shall represent tiie NAMED INSURED and any and ai INSUREDS hereunder in all matters under this POLICY including, without limitation, payment of premium, negotiation of the terms of renewal and the adjustment, settlement and payment of CLAIMS, (h) Other Insurance The insurance afforded by this POLICY shall be in excess of and shall not contribute with OTHER INSURANCE. Nothing herein shall be construed to make this POLICY subject to the terms, conditions and limitations of any OTHER INSURANCE. AEIA 1 (9 of tS] GLD058888 0049-GLD-000058888 <i) SUBROGATION Inasmuch as this POLICY is excess coverage, the INSURED'S right of recovery against any person or other entity cannot be exclusively subrogated to the COfvPANY. It is, therefore, understood and agreed that in case of any payment hereunder, the COMPANY will act In concert with ait other interests (including the INSURED'S) concerned in the exercise of such rights of recovery. The apportioning of amounts which may be so recovered shall follow the principle that any interests (Including the INSURED'S) that shall have paid an amount over and above any payment hereunder, shall first be reimbursed up to toe amount paid by them; the COMPANY is then to be reimbursed out of any balance then remaining up to the amount paid hereunder and. lastly, the interests (including the INSURED'S) of which this coverage is in excess are entitled to claim the residue, if any. Expenses necessary to toe recovery of any such amounts shall be apportioned between or among toe interests (including toe INSURED'S) concerned, in the ratio of their respective recoveries as finally settled. (j) Changes Notice to or knowledge possessed by any person shad not effect a waiver or a change in any part of this POUCY or estop the COMPANY from asserting any right under the terms of this POUCY; nor shall the terms of this POUCY be waived or changed except by endorsement signed by toe COMPANY or its authorized representative and issued to form a part of this POUCY. (k) Assignment Assignment of interest under this POUCY shall not bind the COMPANY unless and until its consent is endorsed hereon. (l ) Cross Liability In toe event of CLAIMS being made by reason oh (1) PERSONAL INJURY suffered by an employee of one INSURED hereunder; or (2) damage to property belonging to any INSURED hereunder; for which smother INSURED hereunder is or may be liable, then this POUCY shall cover such INSURED, subject to toe terms of this POUCY, against whom a CLAIM is made or may be made in the same manner as if separate policies had been issued to each INSURED hereunder. Nothing contained herein shall operate to increase the COMPANY'S Umft of Uability as set forth in Item 2 of the Declarations. (m) Former Subsidiaries and Affiliates if any subsidiary or affiliate of tote NAMED INSURED, which is an INSURED hereunder by virtue of Definition (j) hereof, shall cease to be such a subsidiary or affiliate of toe NAMED INSURED, then at the time of such cessation toe POUCY PERIOD shall automatically expire as to such former subsidiary or affiliate and, ff the NAMED INSURED or such subsidiary or affiliate elects In advance of such expiration, an EXTENDED REPORTING PEFBOD shall automatically incept as to such former subsidiary or affiliate and continue in force until expiration of the NAMED INSURED'S POUCY PERIOD under this POUCY without additional payment or refund of any premium. (n) Headings The descriptions in toe headings and sub-headings of this POUCY are inserted solely for convenience and do not constitute any part of the terms hereof. (o) Insolvency (1) Bankruptcy or insolvency of toe INSURED or the INSURED'S estate shall not relieve the COMPANY of any of its obligations hereunder. (2) The insolvency, bankruptcy, receivership or any refusal or inability to pay of toe INSURED and/or any insurer shall not operate to: (A) lower the PER OCCURRENCE UNDERLYING AMOUNT; or (B) increase toe COMPANY'S liability under this POUCY; and in no event and under no circumstances shall toe COMPANY assume or be deemed to have assumed toe liabilities and/or responsibilities and/or obligations of toe INSURED. ( AEIA 1 (10 of 16] GLD058889 (p) Warranty The NAMED INSURED warrants and agrees as follows: (1) that it has no knowledge at the Inception Date stated in Item 4 of the Declarations of any fact or circumstance not disclosed to the COMPANY in the Application for this POLICY which is likely to give rise to a claim hereunder: and (2) that based upon reasonable inquiry and to the best of its knowledge and belief: (A) all information provided to the COMPANY in the Application for this POLICY is true and correct; and (B) no material information requested has been withheld. (q) Cancellation This POLICY may be cancelled: (1) at any time by the NAMED INSURED by delivering written notice to the COMPANY stating when, not less than thirty (30) days from the date the notice is delivered, cancellation shall be effective; or (2) at any time by the COMPANY by delivering written notice to the NAMED INSURED stating when, not less than ninety (90) days from the date notice was delivered, cancelation shall be effective; except, in the event of cancellation for nonpayment of premiums, such cancellation shall become effective fifteen (15) days after the date notice is delivered. Payment or tender of unearned premium is not a condition of cancellation. Delivery by hand of such notice either by the NAMED INSURED or the COMPANY shall be sufficient delivery. Written notice shall be deemed sufficient delivery if sent by certified mail, return receipt re quested, or by telex and receipt is acknowledged. The POLICY PERIOD shall end on the effective date and hour of cancellation stated in the notice. In the event of cancelation by the INSURED, the premium retained by the COMPANY shall be calculated in accordance with the COMPANY'S short rate table which is attached hereto as Schedule C. In the event of cancellation by the COMPANY, the premium retained by the COMPANY shall be calculated pro-rata based upon the duration of the POLICY PERIOD. For purposes of notice required under this Condition (q) or pursuant to regulation, the offer by the COMPANY of renewal on terms or premiums different from those in effect during the POUCY PERIOD shall not constitute cancellation or nonrenewal of this POLICY by the COMPANY (r) Arbitration (1) Resolution of Disputes: All disputes between any INSURED(S) and the COMPANY (hereafter referred to collectively as the "parties") arising out of or under this POUCY. whether arising before or after termination of this POLICY, shall be submitted to arbitration in the manner set forth in this Condition (r), (2) Composition of Panel: Unless the parties agree upon a single arbitrator within fifteen (15) days after the receipt of a notice of intention to arbitrate, all disputes shall be submitted to an arbitration panel composed of two arbitrators and an umpire, chosen in accordance with paragraph (3) or paragraphs (3) and (4) of this Condition (r). (3) Appointment of Arbitrators: The members of the arbitration panel shall be disinterested, active or retired business executives having knowledge relevant to the matters in dispute. Unless a single arbitrator is agreed upon by the parties, the party requesting arbitration (hereafter referred to as the "initiating party") shall appoint an arbitrator and give written notice thereof, either by telex or by registered or certified may, return receipt requested, to the other party (hereafter referred to as the "responding party*') together with the notice of intention to arbitrate. If there is more than one initiating party or responding party such parties shall act collectively as a single initiating party or single responding party for all purposes including giving notice of intention to arbitrate or giving answer to such notice, and appointing an arbitrator. The notice of intention to arbitrate shall state with specificity the full names and addresses of the parties, the POUCY pursuant to which arbitration is sought, the nature of the dispute and the relief sought. Within thirty (30) days after receiving the notice of intention to arbitrate, the responding party also shall appoint an arbitrator and notify the initiating party thereof in the same manner as above. Before instituting a hearing, the two arbitrators so appointed shall choose an umpire from among such persons meeting the qualifications set forth in this paragraph (3). If, within twenty (20) days after the appointment of the arbitrator chosen by the responding party or chosen in accordance with paragraph (4) of this Condition (r). the two arbitrators fail to agree upon the appointment of an umpire, the AEIA 1 [11 of 16] GLD058890 0049-GLD-000058890 initiating party shall petition the President of One American Arbitration Association or his delegate to appoint the umpire. In the event that an arbitrator or the umpire withdraws from the panel or is unable to discharge his or her duties by reason of death, Kness, or incompetency or otherwise, a replace ment will be selected in the same manner as provided In the original appointment. (4) Failure of Party to Appoint Arbitrator If the responding party fails to appoint an arbitrator within thirty (30) days after receiving notice of intention to arbitrate, the initiating party shall appoint such arbitrator who shall then, together with the first arbitrator appointed by tee initiating party, choose an umpire as provided in paragraph (3) of this Condition (r). (5) Choice of Law and Forum: Any arbitration instituted pursuant to this Condition (r) shall be held in tee State of Connecticut and tee laws of teat State shall govern tee interpretation and application of this POLICY, except insofar as such laws may prohibit coverage of punitive or exemplary damages hereunder; provided, however, that tee terms of this POLICY are to be construed in an evenhanded fashion as between the INSURED and tee COMPANY; without limitation, where tire language of this POLICY is deemed to be ambiguous or otherwise unclear, tee issue shal be resolved in the manner most consistent with the relevant terms (without regard to authorship of tee language, without any presumption or arbitrary interpretation or construction in favor of either the INSURED or tee COM PANY) and in accordance with tee intent of the parties. In reaching any decision, the panei shall give due consideration to the customs and usages of tee insurance industry. (6) Submission of Dispute to Panel: The initiating party shal submit its initial brief within twenty (20) days from appointment of tee umpire. The responding party shall submit its brief within twenty (20) days after receipt of the initiating party's brief and tee initiating party may sitomit a reply brief within ten (10) days after receipt of tee responding party's brief, (7) Procedure Governing Arbitration: Ail proceedings before the panel Shan be informal and the panel shall not be bound by strict rules of legal procedure or evidence. The panef shall have the power to fix ail procedural rules relating to tee arbitration proceeding but cross-examination and rebuttal shall be allowed. (3) Arbitration Award: The arbitration panel Shan render its decision within sixty (60) days after termination of the arbitration proceeding which decision shall be in writing and may state the reasons therefor. The decision of tee majority of the panel shall be final and binding on the parties to tee arbitration and may Include interest at appropriate market rate(s) and any costs of tee arbitration, including a reasonable allowance for attorney's fees. The panel shall not itself assess and award punitive or exemplary damages. Judgment may be entered upon the award in any state or federal court having jurisdiction thereof. (9) Cost of Arbitration: Each party shall bear the expense of its own arbitrator and shall jointly and equally bear with the other party tee expense of the umpire. In the event that both arbitrators are chosen by the initiating party, as provided for in paragraph (4) of this Condition (r), tee initiating party and tee responding party shall each pay half of the expenses of both arbitrators and the umpire. The remaining costs of tee arbitration proceeding shall be allocated by the panel (s) Currency (1) The premiums and losses under this POLICY are payable, and the amounts set forte in the Decla rations are expressed, in United States currency. (2) If judgment is rendered or settlement is denominated, or another element of ULTIMATE NET LOSS is stated, in a currency other than United States currency; payment under this POLICY shall be made In United States currency at the rate of exchange prevailing on the date tee final judgment is rendered, the amount of the settlement is agreed upon or the other element of ULTIMATE NET LOSS is due, respectively. ( AEIA 1 [12 of 16] GLD058891 0049-GLD-000058891 V. DEFINITIONS As used in this POUCY: (a) "ADVERTISING OFFENSE" means DAMAGES arising out of the INSURED'S advertising activities on account of libel, slander, defamation, invasion of right of privacy, piracy, unfair competition, idea misap propriation under an implied contract, or infringement of copyright, title or slogan (other than a patent) committed in any advertisement, publicity article, broadcast or telecast; (b) "AIRCRAFT" means any heavier than air or lighter than air aircraft designed to transport any person or property, missile or spacecraft; (c) "ANNUAL PERIOD" means the period of twelve months commencing at: (1) the effective date of cancellation or the Expiration Date of the POLICY. PERIOD: or (2) the expiration date of any prior ANNUAL PERIOD; (d) "AUTOMOBILE" means a land motor vehicle, trailer or semi-trailer; (e) "CLAIM" means: (1) ary written demand, suit or proceeding against any INSURED by a specifically identified person, entity or asserted class for DAMAGES because of PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE; or (2) any written notice of PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE by any specifically identified person, entity or asserted class; (f) "COMPANY" means the American Excess Insurance Association on behalf of its member insurance companies as set forth in Endorsement Number 1 to this POUCY; (g) "DAMAGES'' meai all forms of compensatory damages, and punitive or exemplary damages, but "DAM AGES" do not include governmental, civil or criminal fines or penalties or DEFENSE EXPENSES; (h) "DEFENSE EXPENSES" means reasonable and necessary legal fees and other expenses which are incurred by or on behalf of the INSURED in the investigation, adjustment, settlement or litigation of claims and which are paid as a consequence of an OCCURRENCE covered hereunder; excluding ail salaries of the INSURED'S employees, officers and directors and office expenses; (i) "EXTENDED REPORTING PERIOD" means the period, if applicable, commencing, with respect to the INSURED, al the effective date of cancellation or the Expiration Date stated in Item 4 of the Declarations or, with respect to a former subsidiary or affiliate of the NAMED INSURED, at the automatic expiration date provided for in Condition (m) hereof and terminating as provided in paragraph 1(b) or Condition (m) hereof, whichever is applicable; (j) "INSURED" means the following to the extent set forth below: (1) the NAMED INSURED and, if the NAMED INSURED Is designated in Item 1 of the Declarations as a partnership or joint venture, the partnership or joint venture so designated and each partner or member thereof but only with respect to his or its liability as a partner or member; (2) (A) any subsidiary or affiliate of the NAMED INSURED whose accounts, as of the date of the financial statements of the NAMED INSURED submitted to the COMPANY most recently prior to the rating of the premium for the POUCY PERIOD: (i) are consolidated in the financial statements of the NAMED INSURED in accordance with generally accepted accounting principles in the United States of America (or, in the case of any foreign NAMED INSURED, any subsidiary or affiliate whose accounts would be consolidated in the financial statements of such NAMED INSURED if such accounts would have been consolidated in accordance with generally accepted accounting principles in the United States of America); or (ii) were eligible for such consolidation and whose financial statements were submitted to the COMPANY as of such date; and/or (B) any subsidiary or affiliate of the NAMED INSURED listed on Schedule A hereto; (3) (A) any executive officer, other employee or director of; or (B) any person or organization while acting as real estate manager for; any person or entity named in paragraph (1) or (2) of this Definition (j) while acting within the scope of his or its duties as such; except with respect to the ownership, maintenance or use, including loading and unloading, of any AUTOMOBILE; ABA t (13 of 16J GLD058892 (4) with respect to the ownership, maintenance or use, including loading and unloading, of any AUTOMOBILE: (A) owned by, lent to or hired for use by or on behalf of any person or entity named in paragraph (1) or (2) of this Definition (j). any person (including an employee of such person or entity) while using such AUTOMOBILE and any person or organization legally responsible for the use thereof, provided its actual use is with the permission of such person or entity: (B) not owned by, lent to or hired for use by or on behalf of any person or entity named in paragraph (1) or (2) of this Definition (|), any executive officer, director, partner, employee or stockholder of such person or entity, but only while such AUTOMOBILE is being used in the business of such person or entity; but none of the following shall be an INSURED under this paragraph (4) of Definition (j): (C) any person whie employed in or otherwise engaged in duties in connection with an AUTO MOBILE sales agency, repair shop, service station, storage garage or public parking place not operated by any person or entity named In paragraph (1) or (2) of this Definition (j); (D) the owner or lessee (of whom such person or entity is sub-lessee) of any AUTOMOBILE hired for use by or on behalf of or lent to such person or entity, and any agent or employee of such owner or lessee; (5) any person or organization except: (A) any organization acquired or formed by or merged with an INSURED after the inception of the POLICY PERIOD; and/or (B) where such other person or organization is engaged in a joint venture with the NAMED INSURED; to whom any person or entity named in paragraph (1) or (2) of this Definition (j) is obligated by virtue of a written contract or agreement to provide insurance such as is afforded by this POLICY, but only to the extent of such obligation and only with respect to operations {other than commercial insurance operations) performed by such person or entity or facilities owned or used by such person or entity; (6) it is agreed to automatically include as an INSURED without adjustment of premium under this POLICY, any entity acquired or formed by or merged with an INSURED (a "Potential Additional INSURED") subsequent to the Inception Date stated In Item 4 of the Declarations and prior to the effective date of cancellation of the POLICY or the Expiration Date stated in Item 4 of the Declarations provided that the fair value of the sum of alt cash, securities, assumed indebtedness and other consideration expended by all INSUREDS for any such acquisition, formation or merger does not exceed 5% of the total assets of the NAMED INSURED and its consofidaled subsidiaries and affiliates as most recently reported to the COMPANY for rating purposes prior to the POLICY PERIOD, and provided further that neither the operations of the Potential Additional INSURED prior to such acquisition, formation or merger nor the resultant combined or consolidated operations of such INSURED and the Potential Additional INSURED subsequent to such acquisition, formation or merger are materially different from those of such WSURED prior to such acquisition, formation or merger. Unless notice to the COMPANY shall have been given and any additional premium required by the COMPANY shall have been paid in respect of the acquisition or formation of or merger with any Potential Additional INSURED not meeting the criteria set forth in this paragraph (6) of Definition 0, such Potential Additional WSURED shall not be an INSURED hereunder; provided, however, it is understood and agreed that the COMPANY shall have no obligation to insure such Potential Additional INSURED hereunder and may in its sole discretion decline to provide insurance for such Potential Additional INSURED not meeting the criteria set forte in this paragraph (6). With respect to any OCCURRENCE giving rise to liability of any Potential Additional INSURED that qualifies to be an INSURED hereunder, the RETROACTIVE DATE shall be: (A) in the case of automatic inclusion, the date of acquisition, formation or merger of the Potential Additional INSURED by an INSURED; or (B) in the case where an additional premium is paid, the date of acquisition, formation or merger of tee Potential Additional INSURED by an INSURED or such other date as may be agreed between the NAMED INSURED and the COMPANY; (k) "INSURED'S PRODUCTS" means: (1) goods or products manufactured, sold, tested, handled or distributed by the INSURED or others trading under its name if the end-use thereof occurs after possession of such goods or products has been relinquished to others by tee INSURED or by others trading under its name and if such use occurs away from premises owned, rented or controlled by the INSURED: provided such goods or products shall be deemed to include any container thereof ether than an AUTOMOBILE, WATER CRAFT or AIRCRAFT: and/or AEIA 1 [14 of 16] GLD058893 (2) materials that were the subject of completed or abandoned OPERATIONS of the INSURED; (!) "NAMEO INSURED" means the parson or organization first named in Item 1 of the Declarations; (m) "OCCURRENCE" means: (1) an event or a continuous, intermittent or repeated exposure to conditions which causes, alleged^ causes or is deemed to cause PERSONAL INJURY or PROPERTY DAMAGE or gives rise, allegedly gives rise or is deemed to give rise to ADVERTISING OFFENSE, where: (A) the event or conditions commence subsequent to the RETROACTIVE DATE and prior to the effective date of cancellation or the Expiration Date stated in item 4 of the Declarations; (B) all of such PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE commences subsequent to the RETROACTIVE DATE; and (C) some of such PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE com mences prior to the effective date of cancellation or the Expiration Date stated in Item 4 of the Declarations; or (2) use of an INSURED'S PRODUCT: (A) which causes, allegedly causes or is deemed to cause PERSONAL INJURY or PROPERTY DAMAGE where some of such PERSONAL INJURY or PROPERTY DAMAGE commences prior to the effective date of cancellation or the Expiration Date stated in Item 4 of the Declarations; and, except as may be specifically agreed between the NAMED INSURED and the COMPANY in an endorsement hereto: (B) where all PERSONAL INJURY and PROPERTY DAMAGE resulting from such use commences entirely at or subsequent to the RETROACTIVE DATE; and (C) where the INSURED at the Inception Date stated in item 4 of the Declarations has no knowledge or notice of any defect or hazard or alleged defect or hazard associated with the INSURED'S PRODUCTS or similar products causing or allegedly causing such PERSONAL INJURY or PROP ERTY DAMAGE; and which PERSONAL INJURY. PROPERTY DAMAGE or ADVERTISING OFFENSE is reasonably neither expected nor intended by the INSURED. Where the INSURED becomes liable for a series of and/or several losses, PERSONAL INJURIES, PROP ERTY DAMAGES or ADVERTISING OFFENSES which result directly or indirectly from the same or sub stantially the same event, conditions, cause, defect or hazard or alleged defect or hazard or failure to warn or alleged failure to warn of such, all such losses, PERSONAL INJURIES, PROPERTY DAMAGES or ADVERTISING OFFENSES shall be added together and shall be treated as one OCCURRENCE irrespec tive of the period or area over which the losses, PERSONAL INJURIES, PROPERTY DAMAGES or AD VERTISING OFFENSES occur or the number of such losses, PERSONAL INJURES, PROPERTY DAMAGES or ADVERTISING OFFENSES. With respect to losses, PERSONAL INJURIES, PROPERTY DAMAGES or ADVERTISING OFFENSES re sulting or alleged to result from the design, formulation, manufacture, distribution, use, operation, main tenance or repair of an INSURED'S PRODUCT or the failure to warn as to the use, operation or maintenance of an INSURED'S PRODUCT, the term "the same or substantially the same event, conditions, cause, defect or hazard or alleged defect or hazard or failure to warn or alleged failure to warn of such" shall mean any such design, formulation, manufacture, distribution, use, operation, maintenance, repair or failure to warn, as the case may be, from which such losses, PERSONAL INJURIES, PROPERTY DAM AGES or ADVERTISING OFFENSES directly or indirectly result; (n) "OPERATIONS" means operations of the INSURED away from premises owned, rented or controlled by the INSURED and includes materials, parts or equipment furnished in connection therewith. OPERATIONS shall be deemed completed at the earliest of the following times: (1) when all OPERATIONS to be performed by or on behalf of the INSURED under the contract have been completed; (2) when all OPERATIONS to be performed by or on behalf of the INSURED at the site of the OPERA TIONS have been completed; or (3) when the portion of tho work out of which the injury or damages arise has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing OPERATIONS for a principal as a part of the same project; AEIA 1 [15 of 16] GLD058894 (o) "OTHER INSURANCE" means any other insurance available to the INSURE) which, irrespective of the existence of this POLICY, indemnifies the INSURED for, or pays on behalf of the INSURED, DAMAGES or DEFENSE EXPENSES with respect to an OCCURRENCE for which DAMAGES or DEFENSE EXPENSES, depending on the amounts) thereof, may be indemnifiable or payable under this POLICY; except OTHER INSURANCE does not include insurance under any policy or policies issued by the COMPANY or insurance under any policy or policies in which this POLICY i6 specifically scheduled as underlying insurance or under any policy which is scheduled in this POUCY as insurance in excess of this POLICY; (p) "PER OCCURRENCE UNDERLYING AMOUNT" means the amount stated in item 3 of the Declarations; (q) "PERSONAL INJURY'' means: (t) bodily injury, shock, fright, mental injury, mental anguish, disability, sickness or disease sustained by any person, including death at any time resulting therefrom; (2) injury arising out of false arrest, detention or imprisonment, malicious prosecution, wrongful entry or eviction or other invasion of the right of private occupancy, humiliation or discrimination because of race, religion, age, sex or physical disability (unless insurance therefor is prohibited by law); and (3) except with respect to injury occurring in the course of the INSURED'S advertising activities, injury arising out of the publication or utterance of a libel or slander or of other defamatory or disparaging material, or a publication or utterance in violation of an individual's right of privacy; (r) "POUCY" means al the terms of insurance issued by the COMPANY to the NAMED INSURED for the POLICY PERIOD set forth in Item 4 of the Declarations including the Application berefor, the Declarations and Schedules hereto aid any Endorsements at any time endorsed hereon; (s) "POUCY PERIOD" means the period set forth In Item 4 of the Declarations commencing with the Inception Date and terminating with the effective date of cancellation or the Expiration Date; (t) '`POLLUTANT'' means any solid, liquid, gaseous or thermal irritant, contaminant or toxic or hazardous substance or any substance which may. does or is alleged to affect adversely the environment, property, persons or animals, including smoke, vapor, soot, fumes, acids, aikaiis, chemicals and WASTE; (u) "PROPERTY DAMAGE1' means: (1) physical injury to or destruction of tangible property including the loss of use thereof at any time resulting therefrom; or (2) loss of use of tangible property which has not been physically injured or destroyed; (v) "RETROACTIVE DATE" means the time and date stated in Item 5 of the Declarations or, with rasped to any Potential Additional INSURED, the date provided for in paragraph (6) of Definition (j); (w) "ULTIMATE NET LOSS'' means the total sum which the INSURED shall become obligated to pay as DAMAGES and/or DEFENSE EXPENSES on account of PERSONAL INJURY PROPERTY DAMAGE or ADVERTISING OFFENSE, either by final judgment against the INSURED after trial or by settlement ap proved in writing by the COMPANY after making proper deduction for all recoveries and salvages collec tible; (x) "WASTE" means POLLUTANTS that are or are to be deposed of or stored for or as disposal, or are to be or are being recycled, reconditioned or reclaimed; (y) "WATERCRAFT" means any ship or vessel of whatever type including, but not limited to, cargo vessels, passenger vessels, other vessels used for transport, towboats and barges, vessels used in the construc tion of pipelines, platforms or other facilities, storage vessels, tanker vessels, drill ships, offshore drilling platforms, drilling barges (including, without limitation, submersible drill barges, semi-submersible drill barges and self-elevating drill barges) and all other vessels of whatever nature and description, all whether or not self-propelled. IN WITNESS WHEREOF each of the members of the COMPANY has caused this POUCY to be signed on its behalf by the President and a Secretary of the COMPANY and countersigned on the Declarations Page by a duly authorized agent of foe COMPANY. c ( \ ABA 1 [16 of 16] GLD058895 Schedules A. Subsidiaries or affiliates which form part of the NAMED INSURED -- See Definition QX2)(B) See Schedule A attached B. Additional premiums for the EXTENDED REPORTING PERIOD -- See Coverage (b) Year of Par Cent of Extended Premium Reporting Stated in Item6 Period of the Declarations istyear................. J_L% 2nd year................ Year of Per Cent of Extended Premium Reporting Stated in Item a Period oftea Declarations 4th year ................. _Z% 5th year ................. Sl % 3rd year................ _Z% C. COMPANY'S Short Rate Table -- See Condition (q) Oavs Policy In Force Per Cant of Premium Stated in Horn 6 ofaw Declarations Days Policy in Pore# Per Cento* Premium Statedin Item 9 ofthe Declarations 1 ........ 2......... ...................... 3- 4......... ...................... 5- 6........ ...................... 7-8......... ...................... 9-10......... ...................... 11-12........ ...................... 13-14 ...... . ,, ............. 6 7 8 9 10 11 12 95- 98................. ......... 99-102 ................ ......... 103-105 ................ ......... 106-109 ................ ......... 110-113 ................ ......... 114-116 ................ 117-120 ................ 121-124 ................ ......... 37% 38 39 40 41 44 15 16........ ...................... 17-18 ........ ...................... 19-20........ ...................... 21-22 ........ ...................... 23-25 ........ ...................... 29-29 ........ ...................... 30-32 ........ ...................... 33-36 ........ ...................... 37-40 ........ 41-43 ........ 44-47 ........ ...................... 13 14 15 16 17 18 19 20 23 125-127 ................ ......... 128-131 ................ ......... 132-135 ................ ......... 136-138 ................ ......... 139-142 ................ ......... 143-146 ................ ......... 147-149 ................ ......... 150-153 ................ ......... 154-156 ................ ......... 157-160 ................ ......... 161-164 ................ ......... 45 46 47 48 49 50 51 52 53 54 55 48-51 ........ ...................... 52-54 ........ ...................... 55-58 .. 59-62 ...... ...................... 63-65 ........ ...................... 66-69 ........ ...................... 70-73 ........ ...................... 24 25 26 27 28 29 30 185-167 ................ ......... 168-171 ................ ...... :. 172-175 ................ ......... 176-178 ................ ......... 179-182 ................ ......... 183-187 ................ 168-191 ................ ......... 56 57 58 59 60 62 74-76 ........ ...................... 31 77-80 ........ ...................... 32 81-83 ........ ...................... 33 192-196 ............... ......... 63 197-200 ................ ......... 64 201-205 ............... ......... 65 84-87 ........ ...................... 34 88-91 ........ ...................... 35 92-94 ........ ...................... 36 206-209 ............... ........... 66 210-214 ............... ......... 67 215-219 ............... ........... 68 Days Policy In Force Per Cent of Premium Stated in item 6 of the Declarations 219-223 ........... .............. 69% 224-228 ........... .............. 70 229-232 .......................... 71 233-237 .......................... 72 238-241 ........... .............. 73 242-246 .......................... 74 247-250 .......... ............... 75 251-255 .......... 256-260 .......... ............... 77 261-264 .......................... 78 265-269 .......................... 79 270-273 .......... ................ 60 274-278 ......... ................ 81 279-282 .......................... 82 283-287 ......... ................ 83 288-291 ......... ................ 84 292-296 ......... ................ 85 297-301 ......... ................ 86 302-305 ......... ................ 87 306-310 ......... ................ 88 311-314 ......... ................ 89 315-319 ......... ................ 90 320-323 ......... ................ 91 324-328 ......... ................ 92 329-332 ......... ................ 93 333-337 ......... ................ 94 338-342 ......... ................ 95 343-346 ......... ................ 96 347-351 ......... ................ 97 352-355 ......... ................ 98 356-360 ......... ............... 99 361-365 ......... ................ 100 D. WATERCRAFT and risks not excluded under Exclusion (b). 1 Tua boat and 3 barges at Baltimore, MD plus watercraft listed on Schedule F of Peabody Holding Company application. AElA 13 [1 of 1] GLD058896 0049-GLD-000058896 AMERICAN EXCESS INSURANCE ASSOCIATION SCHEDULE A AFFILIATED COMPANIES FORMING A PART OF NAMED INSURED (Response to item 4 of Application) Name ofAffiliated Company Description of Operations and Procedures Peabody Holding Company Genoa Dock Corporation Squaw Creek Coal Company Kayenta Mobile Home Park Tecumseh Coal Corporation Yaamba Oil Shale Joint Venture Yaamba Magnesite Joint Venture Rail to Water Transfer Corporation Yankeetown Dock Corporation Dominion Terminal Associates Holding Company Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture AEiA-3 12 GLD058897 0049-GLD-000058897 LIABILITY OF INSURERS ENDORSEMENT Endorsement Number 1. Effective Date of Endorsement October 1st 1990 Attached to and forming part of POLICY Number__ HR000043990 NAMED INSURED________ Hanson Industries It is hereby understood and agreed between the NAMED INSURED and the insurance companies listed below, which are the members of American Excess Insurance Association (referred to in the POLICY as "the COM PANY"), as follows: (1) the insurance afforded by this POLICY is provided by the severed separate insurance companies listed below (hereafter the "insurance companies") and not by the American Excess Insurance Association which is not an insurance company; (2) the liability of the insurance companies shall be several and not joint. The liability of each Insurance company shall be separate and apart from the liabilities of all other insurance companies and in no event shall any Insurance company participate in the liability of any other insurance company; (3) the maximum liabBity of ail the insurance companies shall be the total of the percentage participations of such insurance companies as listed below, which total of percentage participations is ___% (4) each insurance company shall only be liable under the POLICY for the percentage, set opposite its name below, of any ULTIMATE NET LOSS; provided that: (A) in the event that the total of the percentage participations of the insurance companies listed below is less than 100% of $ 75.000.000 r then, in respect of any ULTIMATE NET LOSS, irrespective of the amount thereof, the INSURED shall have no right of recovery under this POUCY for the uninsured percentage of such ULTIMATE NET LOSS, which uninsured percentage is the percentage by which such total of the percentage participations is (ess than 100%; (B) in no event shall any insurance company pay more than the percentage set opposite its name of the amount stated in item 2 of the Declarations as the COMPANY'S Limit of Liability; (C) in the event that any insurance company for any reason whatsoever, including but not limited to the insolvency or financial impairment of such insurance company, is unable or refuses to Indemnify any INSURED in respect of foe percentage of any ULTIMATE NET LOSS for which such insurance company is liable, no other insurance company or companies shad be liable for such percentage and the INSURED shall have right of recovery of such percentage only from foe insurance company which is so unable or so refuses. INSURANCE COMPANIES THE AETNA CASUALTY AND SURETY COMPANY AMERICAN HOME ASSURANCE COMPANY CONTINENTAL CASUALTY COMPANY FEDERAL INSURANCE COMPANY THE CONTINENTAL INSURANCE COMPANY UNITED STATES FIRE INSURANCE COMPANY GENERAL STAR NATIONAL INSURANCE COMPANY THE HOME INSURANCE COMPANY INSURANCE COMPANY OF NORTH AMERICA MARYLAND CASUALTY COMPANY NAC REINSURANCE CORPORATION ROYAL INSURANCE COMPANY OF AMERICA THE TRAVELERS INDEMNITY COMPANY ZURICH INSURANCE COMPANY, U.S. BRANCH PERCENTAGE PARTICIPATION 16.33% 7.50% 7.50% 8.83% 7.50% 7.50% 1.33% 1.33% 13.34% 1.50% 1.50% 4.00% 13.34% 8.50% ABA 2 President Signature of Authorized Representative Farmington Management, Inc. [1 of 11 6LD058898 AMERICAN EXCESS INSURANCE ASSOCIATION POLLUTION EXCLUSION REVISION ENDORSEMENT It is agreed that subparagraph (Z)(D) of Exclusion (c) to the POLICY is amended to read as follows: CD) PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE directly or indirectly arising out of the actual, alleged or threatened discharge, dispersal, release, seepage or escape of any POLLUTANT: (i) into any underground water of watercourse; or (ii) from any underground or underwater tank* piping or other container or any type; unless the immediate cause of such discharge* dispersal, release, seepage or escape is unintended fire or explosion, or lightning, or collision or overturning of an AUTOMOBILE or railroad vehicle; This Endorsement forms part of the POLICY to which it is attached, effective on the Inception Date of the POLICY unless otherwise stated herein. (The information below is required only when this Endorsement is issued subsequent to preparation of the POLICY.) Endorsement effective Policy No. __ Endorsement No. _________________________^ NAMED INSURED Countersigned by: (Authorized Representative) ARIA-3 5 GLD058899 0049-GLD-000058899 MANDATORY ENDORSEMENT (For Use on Policies Issued In New York) It is agreed that such insurance as is afforded by the Policy is amended as follows: 1. "Pay On Behalf Of" is substituted for "Indemnify" whenever such word appears in the Policy. 2. By the addition of "... or the licensed agent of the Company ..." after the word "... Company ..." in the seventh (7th) line of IV Condition (c) Notice of Occurrence or Claim. 3. IV condition (q) Cancellation is amended to read as follows: "(q) Cancellation or Non-Renewal This POLICY may be cancelled: (1) at any time by the NAMED INSURED by delivering written notice to the COMPANY stating when cancellation shall be effective; or (2) by the COMPANY by delivering written notice to the NAMED INSURED stating when, not less than ninety (90) days from the date notice was delivered, cancellation shall be effective; except, in the event of cancellation for nonpayment of premiums, such cancellation shall become effective fifteen (15) days after the date notice is delivered. Payment or tender of unearned premium is not a condition of cancellation. After the new or renewal POLICY has been in force for more than sixty (60) days, the POLICY may be cancelled by the COMPANY only if: (a) required pursuant to a program approved by the Superintendent of Insurance of the State of New York as necessary because a continuation of the present premium volume would be hazardous to the interests of policyholders of the COMPANY, its creditors or the public, or 1- - GLD058900 0049-GLD-000058900 (b) the cancellation is based on one or more of the following reasons: (A) Non-payment of premium, (B) Conviction of a crime arising out of acts increasing the hazard insured against, (C) Discovery of fraud or material misrepresentation in obtaining the POLICY or in the presentation of a claim thereunder, (D) Discovery of willful or reckless acts or omissions increasing the hazard insured against, (E) Physical changes in the property insured occurring after issuance or last annual anniversary date of the POLICY which result in the property becoming uninsurable in accordance with the COMPANY'S objective, uniformly applied underwriting standards in effect at the time the POLICY was issued or last, voluntarily renewed, or (p) A determination by the Superintendent of Insurance of the State of New York that the continuation of the POLICY would violate or would place the COMPANY in violation of the laws of the State of New York. In the event the POLICY is non-renewed by the COMPANY, written notice of its intention to non-renew shall be delivered by the COMPANY to the NAMED INSURED at least sixty (60) days prior to the termination or renewal date of the POLICY. Such notice shall state the reasons for non-renewal. No increase in rates for such POLICY shall be imposed unless written notice of intention thereof is delivered to the NAMED INSURED at least sixty (60) days prior to the anniversary date of such POLICY. -2- GLD058901 0049-GLD-000058901 Delivery by hand of such notice either by the NAMED INSURED or the COMPANY shall be sufficient delivery. Written notice shall be deemed sufficient delivery if sent by certified mail, return receipt requested, or by telex and receipt is acknowledged. The POLICY PERIOD shall end on the effective date and hour of cancellation stated in the notice. In the event of cancellation by the INSURED, the premium retained by the COMPANY shall be calculated in accordance with the COMPANY'S short rate table which is attached hereto as Schedule C. In the event of cancellation by the COMPANY, the premium retained by the COMPANY shall be calculated pro-rata based upon the duration of the POLICY PERIOD. For purposes of notice required under this condition (q) or pursuant to regulation, the offer by the COMPANY of renewal on terms or premiums different from those in effect during the POLICY PERIOD shall not constitute cancellation or non-renewal of this POLICY by the COMPANY." 4. The definition of (g) "DAMAGES" of V Definitions is amended to read as follows: "DAMAGES" means damages on account of PERSONAL INJURY, PROPERTY DAMAGE or ADVERTISING OFFENSE, but "DAMAGES" do not include governmental, civil or criminal fines or penalties and "DEFENSE EXPENSES". 5. Subparagraph 2 of (q) "PERSONAL INJURY" is amended to read as follows: "(2) injury arising out of the false arrest, detention or imprisonment, malicious prosecution, wrongful entry or eviction or other invasion of the right of private occupancy, or humiliation; and ..." -3- GLD058902 0049-GLD-000058902 It is further agreed that as a consequence of this amendment, coverage for injury arising out of the discrimination is excluded and is not covered by the Policy. AEIA-S-6 -4 GLD058903 0049-GLD-000058903 4 A (second/XXKaa/SECKBBtt^aXEb) ANNUAL PBRIOD shall Incept on the Annual Expiration Date provided the NAKED INSURED gives written notice o election to continue the EXTENDED REPORTING PERIOD not less than ten (10) days prior to the Annual Expiration Date and pays to the COMPANY the applicable annual premium as set forth in Schedule B to the POLICY. This endorsement forma a part of the POLICY to which attached, effective on the inception date of the POLICY unless otherwise stated herein. (The information below is required only when this endorsement is issued subsequent to preparation of the POLICY.) Endorsement effective Endorsement No 10/1/91 NAMED INSURED: Hanson Industries Policy No. HRQ0QO4399O Additional Premium $90,000 AEIA-4 Countersigned by: (Authorized Representative) GLD058904 0049-GLD-000058904 AMERICAN EXCESS INSURANCE ASSOCIATION EXTENDED REPORTING PERIOD ENDORSEMENT It is agreed that, the NAMED INSURED having, in accordance with Coverage (B) of the POLICY: (1) elected to secure an EXTENDED REPORTING PERIOD for all INSURED(S) as is or are designated below; and (2) paid to the COMPANY the applicable annual premium as set forth in Schedule 3 to the POLICY; an EXTENDED REPORTING PERIOD shall incept for the ANNUAL PERIOD which commences at the Effective Date of this Endorsement, and shall expire at 12:01 A.M. on the day of October 1 , 1992 t"Annual Expiration Date"). The terms and conditions of the policy and this Extended Reporting Period shall apply only to limits of $25,000,000 in the aggregate excess of a Per Occurrence Underlying amount of $25,000,000* Designated INSURED(S): 1. Hanson Industries 2. 3. 4. GLD058905 0049-GLD-000058905 American Excess Insurance Association (This application to be used for appficants domiciled in New York State only) THIS IS A REPORTED OCCURRENCE POLICY WHICH CONTAINS CERTAIN FEATURES THAT ARE ANALOGOUS TO THE ONES FOUND IN CLAIMS MADE POLICIES. PLEASE READ THE ENTIRE POLICY CAREFULLY. "DEFENSE EXPENSES" ARE INCLUDED IN THEUMITS OF LIABILITY OF THE POUCY AND ARE IN CLUDED IN THE "PER OCCURRENCE UNDERLYING AMOUNT". This Policy Application must be completed in its entirety. When appropriate, questions herein may be an swered by specific reference to Form 1QK sections(s) or other material attached hereto. 1. (a) Name and Address of Applicant (To appear as Named Insured if policy is issued): Hanson Industries (Excluding Peabody Holding Company, Inc.) 410 Park Avenue_________________________________ New York. NY 10022 (b) State of Incorporation:__ (c) Effective Date of Coverage: October 1,. 1990 2. Subsidiaries or affiliates of Applicant whose accounts are consolidated in the financial statements of the Applicant (attach list or make reference to listing in Form 10K or Annual Report of Applicant). See Exhibit AA 3. If Applicant is foreign, attach list of subsidiaries or affiliates whose accounts would have been consoli dated in accordance with generally accepted accounting principles in the United States. 4. List on Schedule A (to be attached to and form a part of the policy when issued) any other subsidiary, affiliate, associated company or joint venture to be insured. AEIA-3-NY 1 j GLD058906 0049-GLD-000058906 5. If other than the Named Insured above shall represent all insureds in all matters under this policy {such as but not limited to: premium payment, negotiation of renewal terms, payment of daims), indicate name and address (to appear as Named Insured's representative if policy is issued): N/A;. 6. Describe each joint venture in which the Applicant has an interest greater than 10% and/or which has assets in excess of $25,000,000: Project Name Participant Brief Description ofJoint Venture 7. Attach a copy of the latest Annual Report and Form 10K (or the equivalent if not applicable) of the Applicant and each company listed on Schedule A for the most recent year. 8. Estimates of: (a) Annual Payroll (in u.S. dollars) 14.JSA $ 75^^54*000-. g-CanadianS 7,354,000. 3-Foraign S 17,156,000. (b) Annual Sales (in U.S. dollars) 14IRA a 4,822)468,000. P-f^anariian $ 56,683,000. 3-Fnmign 3! 284,382,000. Describe any "Inter-Company Sales" exceeding 10% of the total: N/A (c) Number of Employees 1-u s a fi39,737. 2-Canadian $__________ 3-Foreign a 2,575. (d) 1. Annual Advertising Expenditure (in U.S. dollars) $________________________________________________________ AEIA-3 2 GLD058907 0049-GLD-000058907 11. (a) Describe any norvowned, owned, leased or chartered watercraft or watercraft risks for which cov erage is requested: 1- Tug Boat (Baltimore, MD) ________________________________________ __________ 3- Barges (Baltimore, MD) (b) Describe any railroad exposures including details of any feclties/operations owned or operated (other than incidental sidings and premises grade crossings): Incidental Side Track Agreements only (c) Describe any intra-city Sght-raii exposure (e.g., subway, street car. etc.) for which coverage is requested: No known exposure Description of Operations Number of Passenger Cars Miles of Track Number of Passengers Annually (0) Describe any bus operations for which coverage is requested: No known exposure Description of Operations Number of Buses Miles Travelled Number of Passengers Annually Inter-city __________________ ______________ _____________ Intra-dty __________________ ______________ _____________ School Buses __________________ ______________ _____________ Tours __________________ ______________ _____________ Other __________________ ______________ _____________ A6IA-3 4 5 GLD058908 0049-GLD-000058908 2. Type of media use and proportion of total expenditure on each Magazines/rrade_J_oumals-30^. Exhibits-10%: T.V.-10% Kadio-5%; Newspapers-10%: Promotional Literature-15%; other-?m (q ) if the Applicant has any exposure under the following, indicate payrolls: 1. Jones 2. Federal Employers liability Act No ffnnum B-ypngima 9. Automotive power units: (estimated total owned & leased by type) (a) Private passenger 1 jfiftft_________________ Trucks and Tractors School buses0_____________________________ TaxWJveryQ_ (b) Type of cargo hauled (elaborate where inflammable/explosive substances hauled)___________ Tnaiira^fl fbn Prr>dMrJ-g (c) Give details of long haul (over 500 miles -- one way) operations Some Divisions (i.e. A & S MW Mfg..etc.')will. from time to tims. haul their own good in excess of 500 miles. ' 10. Description of Operations: (a) Describe any details of operations not otherwise contained in the attached Form 10K or annual report (e.g., occupancy type risks -- number and size: construction type risks -- tunnel and dam work -- turnkey: utilities -- dams: etc.): See Exhibit # 1 (b) Describe any discontinued operations or sold entities for which coverage is required. Describe products and the disposition of product liability: See Exhibit # 2_____________________ ______________ (c) Describe any areas of expected expansion, change, or new products in next 6 months:_____ Hanson has, and will continue to acquire, companies which fit into its major business segments, when the proper opportunity arises. AE1A-3 3 Li GLD058909 0049-GLD-000058909 13. Attach a list or describe below the products manufactured, handled, distributed or sold or services performed under the following classifications: Classification (a) Aircraft and/or Aerospace Products or any material or substance supplied di rectly to or for the use by the Aircraft and/or Aero space Industry (b) Pharmaceuticals -- Medical (Submit lists of prescription and non prescription medical care products) (c) Birth control drugs or devices (d) Chemical and petrochem icals (e) Nuclear energy (f) Pollution control devices (g) Other products, or major services performed Description See Exhibit # 1 Annual Sales Domestic Foreign $$ 14. Real & Personal Property: (over $10,000,000 in value per location) (a) Schedule locations of teased premises and indicate use and if Applicant is held harmless and/or named as an additional insured in landlords policy: (b) Schedule locations where personal property of others is in Applicant's Care, custody or control, (e.g.. Data Processing Equipment. Leased Machinery or Equipment. Goods for Storage or Processing, etc.): AE1A-3 6 GLD058910 0049-GLD-000058910 12. With respect to malpractice and professional liability exposures, state: A. 1. Medical {incidental to other operations): (a) Number of doctors employed; (b) Number of nurses employed: (c) If Hospital or Medical facilities are maintained by the Applicant, give location, number of beds, occupancy rate and other pertinent information:._______________________ _ N/A________________________ ______ C (d) Do any patients, not employees of the Applicant, use the services of such doctors, nurses or hospitals?' N/A indicated percentage of non-employee patients 2. Medical (other than incidental): No known exposure (a) List all hospitals or medical facilities showing location, number of beds and occupancy rate, outpatient visits: No known exposure________________________________________________________ (b) List nursing homes operated showing number of beds: No known exposure__________________________ 8. Non-medical (e.g.. Architects, Engineers, Accountants, Lawyers, etc.). Describe extent to which such services are provided to third parties: None known AEIA-3 5 4 GLD058911 0049-GLD-000058911 20. Indicate any losses included on Schedule C which are caused by or alleged to be caused by pollution: None 21. On Schedule 0 itemize and give details on all losses shown on Schedule C which exceed $1,000,000. (Paid, outstanding, and allocated expenses), (a) caused by a single occurrence, and separately, See Exhibit # 4 (b) caused by any defect or hazard or alleged detect or hazard associated with insured's product or operations completed or abandoned by the Applicant 22. if any of the losses on Schedules C or D have been handled or reserved amounts established through a service contract rather than by an insurance company for its own account, give details beiow. (In clude name of individual or organization; if Applicant has self-administered his own losses, furnish infor mation about individua!{s) responsible for handing and their qualifications and procedures: if a dam audit has been made in the past year by an independent service, attach report). Crawford & Co., C.S.S.C. 23. is foe Applicant aware of: (a) any event or conditions which might reasonably be expected to give rise to a loss or liability in excess of $1,000,000? Describe: None known (b) any defect or hazard or alleged defect or hazard associated with the Applicant's products or operations completed or abandoned by the Applicant which might reasonably be expected to give rise to a loss or liability in excess of $1,000,000 in aggregate? Describe: None known 24. (Describe any ongoing investigations into the Applicant's products or operations by any governmental body: None known AE1A-3 8 1 GLD058912 0049-GLD-000058912 :vtf 15. Contractual/Hold Harmless/Indemnity Agreements -- provide details of any which could reasonably be considered to be outside of the scope of those agreements normally entered into by the Applicant in the normal course bf operations and any other sufch agreements which may be material to the Appli cant's legal liability or where die sole negligence of the indemnity is assumed: No known exposures outside of those which are normally entered into bv the applicant. 16. Describe loss control and loss prevention measures which Applicant employs and would like the under writer to consider. Attach a copy of die program if appropriate. Is the program self-administered? If administered by a service company or insurance company, name of administrator Various loss control services are utilized bv Hanson to provide x assistance, including Sedgwick James. Nabisco and self-administered programs. ..................................................................................................................... .......... . 17. List on Schedule B all liability insurance of the Applicant. List layered policies in: ascending order of attachment, including layers retained by Applicant 18. As Respects Underlying Insurance (respond below or in additional comments column on Schedule B): (a) Explain any exclusions to standard General Liability Policy coverage: Asbestos Exclusion. Hazardous Substances, Remedial Action Exclusion, Pollution Exclusion. ( (b) Indicate deductibles, self-insured retentions, retrospective rating plans or other funding mecha nisms in the amount of $1 milion or more per occurrence/accident: 19. List on Schedule C a summary of losses by year (insured and uninsured) for the past 10 years by line of coverage, e.g.: (a) Automobile Liability (b) General Liability See Exhibit # 3 (c) Products and Completed Operations Liability (d) Etc. AEIA-3 7 Q GLD058913 0049-GLD-000058913 AMERICAN EXCESS INSURANCE ASSOCIATION 2' THE APPLICANT, BASED ON REASONABLE INQUIRY (INCLUDING BUT NOT LIMITED TO REASONABLE ( INQUIRY OF THE LEGAL AND-RISK MANAGEMENT DEPARTMENTS OF THE APPLICANT), WARRANTS TO THE BEST OF ITS KNOWLEDGE AND BELIEF THAT THE STATEMENTS SET FORTH HEREIN ARE TRUE AND THAT NO MATERIAL INFORMATION HAS BEEN WITHHELD. IT IS UNDERSTOOD THAT THE COMPANY MAY REQUEST ADDITIONAL INFORMATION WHICH, WHEN SUBMITTED, WILL BECOME PART OF THIS APPLICATION AND SUBJECT TO THE FOREGOING WARRANTY. SIGNING OF THIS APPLICATION DOES NOT BIND THE COMPANY TO OFFER, NOR THE APPLICANT TO ACCEPT INSURANCE, BUT IT IS AGREED THAT THIS APPLICATION SHALL BE THE BASIS OF THE INSURANCE SHOULD A POLICY BE ISSUED. BY SIGNING THIS APPLICATION, THE APPLICANT ACKNOWLEDGES THAT IT HAS RECEIVED THE ATTACHED SPECIMEN POLICY AND AGREES TO BE BOUND BY THE MANDATORY ARBITRATION PROVISION SHOULD A POLICY BE ISSUED. THE APPLICANT FURTHER WARRANTS THAT IF THE INFORMATION SUPPLIED ON THIS APPLICATION CHANGES BETWEEN THE DATE OF THIS APPLICATION AND THE INCEPTION DATE OF THE POLICY PERIOD, IT WILL IMMEDIATELY NOTIFY THE COMPANY. THE APPLICANT FURTHER ACKNOWLEDGES THAT IT HAS RECEIVED INFORMATION FROM THE COMPANY DESCRIBING THE LIMITED SCOPE OF COVERAGE AND THE POTENTIAL COVERAGE GAPS INHERENT IN THE POLICY FORM. FURTHER, THE APPLICANT ACKNOWLEDGES THAT IT IS AWARE THAT THE LIMITS OF LIABILITY CONTAINED IN THE POLICY SHALL BE REDUCED, AND MAY BE COMPLETELY EXHAUSTED, BY "DEFENSE EXPENSES" AND, TO THE EXTENT THAT POLICY LIMITS ARE THEREBY EXCEEDED, THE COMPANY SHALL NOT BE LIABLE FOR "DEFENSE EXPENSES" OR FOR THE AMOUNT OF ANY JUDGMENT OR SETTLEMENT. THE COMPANY HEREBY ADVISES THE APPLICANT OF ITS RIGHT, ( UPON WRITTEN REQUEST, TO AN ACCOUNTING OF "DEFENSE EXPENSES" ACTUALLY PAID BY THE COMPANY UNDER THIS POLICY. NEW YORK LAW MANDATES THAT THE FOLLOWING WARNING BE GIVEN: "ANY PERSON WHO KNOWINGLY AND WITH INTENT TO DEFRAUD ANY INSURANCE COMPANY OR OTHER PERSON FILES AN APPLICATION FOR INSURANCE CONTAINING ANY FALSE INFORMATION, OR CONCEALS FOR THE PURPOSE OF MISLEADING, INFORMATION CONCERNING ANY FACT MATERIAL THERETO, COMMITS A FRAUDULENT INSURANCE ACT, WHICH IS A CRIME. " APPLICANT: Hanson Industries BY (OFFICER OF APPLICANT) : TITLE; Director of Risk Management _ (Type) DATE: (Type) (IMPORTANT: PRODUCER SIGNATURE REQUIRED ON THE NEXT PAGE) AEIA-3-NY 10 0[ 0049-GLD-000058914 25. Additional Comments (optional) C ASA-3 g )0- GLD058915 0049-GLD-000058915 SEP 13 *99 10*02 F S JfltCS . AMERICAN e x c e s s in s u r a n c e a s s o c ia t io n P.2 2$, ms APPLICANT, BASSO ON REASONABLE INQUIRY (INCLUDING BUT NOT LIMITED TO REASONABLE INQUIRY OF THE LEGAL AND RISK MANAGEMENT DEPARTMENTS OF THE APPLICANT}, WARRANTS TO THS BEST OF ITS KNOWLEDGE AND BELIEF THAT THE STATEMENTS SET FORTH HEREIN ARB TRUE AND THAT NO MATERIAL INFORMATION HAS BEEN WITHHELD.. XT IS UNDERSTOOD THAT THS COMPANY MAY REQUEST ADDITIONAL INFORMATION WHICH, WHEN SUBMITTED, WILL BECOME PARI OF THIS APPLICATION AND SUBJECT TO THE FOREGOING WARRANTY.* ' SIGNING OF THIS APPLICATION DOES NOT BIND THE COMPANY TO OFFER, NOR THS APPLICANT TO ACCEPT INSURANCE. BUT IT IS AGREED THAT THIS APPLICATION SHALL BE THE BASIS OF THS INSURANCE SHOULD A POLICY 28 ISSUED. BY SIGNING THIS APPLICATION, THE APPLICANT ACKNOWLEDGES THAT IT HAS RECEIVED THS ATTACHED SPECIMEN POLICY AND AGREES TO BE BOUND BY THE MANDATORY ARBITRATION PROVISION SHOULD A POLICY BE ISSUED. THS APPLICANT FURTHER WARRANTS THAT IF THE INFORMATION SUPPLIED ON THIS APPLICATION CHANGES BETWEEN THE SATE OF THIS APPLICATION AND THE INCEPTION DATE OF THS POLICY PERIOD, IT WILL IMMEDIATELY NOTIFY THS COMPANY, THE APPLICANT FURTHER ACKNOWLEDGES THAT IT HAS RECEIVED INFORMATION FROM THS COMPANY DESCRIBING THE LIMITED SCOPS OF COVERAGE AMD THE POTENTIAL COVERAGE GAPS INHERENT IN THE POLICY FORM. FURTHER, THE APPLICANT ACKNOWLEDGES THAT IT IS AWARE THAT THE LIMITS OF LIABILITY CONTAINED IN THE POLICY SHALL BE REDUCED, AND KAY BE COMPLETELY EXHAUSTED, BY "DEFENSE EXPENSES" AND, TO THE EXTENT THAT POLICY LIMITS ARE THEREBY EXCEEDED, THE COMPANY SHALL NOT BE LIABLE FOR "DEFENSE EXPENSES" OR FOR THE AMOUNT OF ANY JUDGMENT OR SETTLEMENT. THE COMPANY HEREBY ADVISES. THS APPLICANT OF ITS RIGHT, UPON WRITTEN REQUEST, TO AN ACCOUNTING OF "DEFENSE EXPENSES" ACTUALLY PAID BY THE . COMPANY UNDER THIS POLICY. HEW YORK LAW MANDATES THAT THS FOLLOWING WARNING BE GIVEN; ' "ANY PERSON WHO KNOWINGLY AND WITH INTENT TO PEFRAUD ANY INSURANCE COMPANY OR OTHER PERSON FILES AN APPLICATION FOR INSURANCE CONTAINING ANY FALSE INFORMATION, OR CONCEALS FOR THE PURPOSE OF MISLEADING, INFORMATION CONCERNING ANY FACT MATERIAL THERETO. COMMITS A FRAUDULENT INSURANCE ACT, WHICH IS A CRIME." APPLICANT; * Hanson Industries <Ty?*) BY (OFFICER OF APPLICANT): .. Donald L- Schoenewolf TITLE: Director of Risk Management (Type) _ DATE: _ September 13, 1990 (Type) (IMPORTANT: PRODUCER SIGNATURE REQUIRED ON THE NEXT PAGE) AEIA-3-NY 2'd 10 il S3Uiyr s A S0:U 06. frl d3S GLD058916 0049-GLD-000058916 Submitted by (a duly authorized insurance producer representing a member of the Association): Name of Firm: Sedgwick James of New England. Inc, (Type) Complete Mailing Address: Broad Street (Type) Boston* MA Q2109 Phone: 617-357-6600* Telex: Fax: 617-357-6754 Name of Authorized Representative: - Joseph F. Zavagnin, Vice President Type) Association Member Represented: --------- --------- Producers domiciled in Delaware. Maryland, New Jersey, New Ybrk, Pennsylvania and Canada should return the completed application to: American Excess Insurance Association Two World Trade Center Suite 3870 New York, NY 10048 Phone Number (212) 466-0097 Telex Number: 62943427 Fax Number: (212) 466-6303 All other producers should return the completed application to: American Excess Insurance Association RiverBend Executive Park 77 Hartland Street. Suite 400 East Hartford, CT 06108 Phone Number (203) 528-2105 Telex Number 62943426 Fax Number: (203) 282-9393 AEIA-3-NY 11 IJl GLD058917 0049-GLD-000058917 AMERICAN EXCESS INSURANCE ASSOCIATION SCHEDULE A AFFILIATED COMPANIES FORMING A PART OF NAMED INSURED {Response to item 4 of Application) Name of Affiliated Company Description of Operations and Procedures A61A-3 12 GLD058918 0049-GLD-000058918 HANSOM INDUSTRIES DESCRIPTION OF OPERATIONS _jdgwick James 51 & M (ft & Uu oN. Bo O* a Si o s 8 u at g>- sU) j w*y ijug Stu JSV) go $s X --ko- t- w Xy ox ~_J <A < X-- ->J- os x ce x xce -cje o-J ^ U. U < (A S8 3 BC IkS. <O &s O3 <2 B 3a< U?J- <g_--bsIl uiC(guAL. a3 Z--Xk- o Xti S eO $6. oO: uk UJ (J o e u w u 2 iu se ui >- 2S 2 ik S^ S3& 8 It U UJ GLD058919 0049-GLD-000058919 *}/ < ax s i- r- j i/i -1 6 >. O o> < o UJ O o ^w t X A WN K QC SB HANSOM INDUSTRIES DESCRIPTION OF OPERATIONS GLD058920 0049-GLD-000058920 LI HANSON INDUSTRIES DESCRIPTION OF OPERATIONS wse 1t9- &cc -- _J C/> 0W-o V0O-B<0>- S-O IIJ 7 O o g is C<CA 8to -- < u<5- U. V) S _J I- --^111 Utt9 > s g 5 zB tS-- u u> se s h cc o < uj w 5 UJ I I S V) U < OO 0V) tt UJ ^ GLD058921 0049-GLD-000058921 -51 IuU- *oV--- _KoJ *OW -3 O V- o R1 8 K) sa t zO oTMX3 -- o <>-- =CA** UW ZO2 53? Z CP 2U D5;M _ u w i- . ui _Oj Z Oce o --U> 3 0 _i . sc b. i DC <> X< OX HnI > 3uj ui > w a z>- uIH Ux xU ~3 3a O O < z O _ X SC -4 <A .J < *S3! za4>c ft csud Z u. *j in r3 2 uj (A * _Ol U*. K bw. Ill Ou. *- XUl 83 Xn S Kui IU m 2 r- S2 <to o g < ft 3 ui s az a 1 GLD058922 0049-GLD-000058922 g DuUiJ- *O^ o-Q>JC Co* O O' < ur 3 j u UJ < X< B X Ul J U. U U D B- na 2o 0& Ua*J*. (9 IU m SSj< - HANSOM INDUSTRIES DESCRIPTION OF OPERATIONS GLD058923 0049-GLD-000058923 HANSON INDUSTRIES DESCRIPTION OF OPERATIONS iddgwick James s ee a -- u o> o i. IU V K B o o <>- oo a b Z III' X Ul & o O X SB X U1 -- Cl . *- S -BB _._Jj ___Ji _iti >> Sl>U IHu>j- <Uo *< <=-- A! b I- Z 8 ee a iu w u iu a. o SB ** m (A m~l 2* MW KX 8 23 O X u. 3 e" < -- SSi1fUt ss 2O gW GLD058924 0049-GLD-000058924 sauJBf jpjM Sp?'" Ot- (qA: sg O <Kf- 3s 1- - J 1 U O. D > U1o1 VOo> K<^a. fOoi _I<IJI <(-As s o (M SI 0 2 J Q^QZ W2 <J 1UMi Off c n- <ui asg a. aB< siI I<s _Ik* -^J to < CA ^ u> o OJ u 40 U < (A ^ U (A S S ** tt CL U. Ml v> IA b~ o a *- mUMU U M < Q h< M*toJ- H<*. --UXt 1(1A1to L* 4/) a: -a w J k L> CO iA * (A U- h p at ui z 5 <ee MO <oU uU xUo.I z -- Ui UI z u at o < ui S ee u. hom- uzo z< u- -- a: ts a 50 *o- JS 1^5 sit U - UU-I uZ ui ui r 8 > i GLD058925 0049-GLD-000058925 HANSON INDUSTRIES DESCRIPTION OF OPERATIONS -dgwick James if to tf i*Uu- *o- _--Oj| W"--> IU V K "3 O >- O Ui _l (A <' Q --h25 u 8 &DC ) 6LD058926 0049-GLD-000058926 HANSON INDUSTRIES DESCRIPTION OF OPERATIONS .dgwick James 2 fe s && S** 5 S? s s Mi U >s U 3 * mm U> U O XP-- t-- zo c<n i:* - Ul * -- -- tf *" U. Ul *gI U--a<oeg: U3i utmw-j ^ Ob <* hu/>- g 3< 3S K8 U-l w< u< <x U. |U sA3n KOO <D^ x3a < <uIoIo)i t_J uWU> o3souHi Ul SS-- 2K s II al 36 S 3 ib smx gx x. o UaJ. 5g s sw tMt t*t 2 >i-- sa. j I pr GLD058927 0049-GLD-000058927 HANSOM INDUSTRIES DESCRIPTION OF OPERATIONS ~dgwick James I *K OuiU--i ^oc I/I ^b g3 c; u & Uui sO' oee o- D O- C O u ok-- (A O 1-o1}1 Os' o-- 8 s8 -8 a. x *5 s S mt hX- I"U "5 OX <VD). k1t<--1A-1 u * se^c si --u * V9 Sis 25 8DH SU 8M 8h ; Cfl M U UJ A I- - iU U hg S*1 sg" U IP 85 U. <9 o2 E5 8 o" e *g n a 8g U--hUtel ~*acO2 C/> GLD058928 0049-GLD-000058928 \w o 5S HANSOM INDUSTRIES DESCRIPTION OF OPERATIONS K o o* o i ul o oo> a><-t Ooo 8 cat~oe, Q. a oJ* Ul j 9 m U W u Uo W O3-- u3- 23 <9 U Ul 5S 2$ S>- in MU < 5 * Sc *VJ I v> 53 a. a tn s- 2g gs u-- oa S3 UJ *0 "o Oauc t**u* LOO ; GLD058929 0049-GLD-000058929 IS _i v> o- o >< o s s e i8 8te & N* . ai E u -I a/ l/T HANSOU INDUSTRIES DESCRIPTION OF OPERATIONS CO 1 CS to 5o Itt w* ^S M u) a m iu u tn ui or $3 UJ 3 ^o ws jg 5? 3 ' V(uA. U_t-JJ i8 &u 1 i -OOu ^ BOtoH- t>*a/s- ^ ID HIU P< (I) 5s u> 3o i GLD058930 0049-GLD-000058930 Is ft 8 0/ E --(3> J<s-C> 1 u <oUi fe> ^ ^O MU-o> S^ t><f- ooo M (A O 8 *- -- Uf r *J C7 Ul os MDh <tOt 8ac 2c S - S< 8 11 X 111 % >s >.- i* 5P o*am*> -- u-oii wo1L <nuwiane <BiutfA iu w&o k uu2eVe* 2Uuj(Ifil. MgWkcj v^I<Zt m*IuVkJj t/i ar --CZD ss ss $ GLD058931 0049-GLD-000058931 <> v- aient a<Oe 5-- =3V--eJ 2tt3O- Xt0fu*. I-- -- _J l/i 0u-O o0s-><0* ooO- oUl "(A tin w-- 8o 3 w 8 Ni\j. --CK <\J fc 3 0 "CD> JCSC.I QJ l/T HANSON INDUSTRIES DESCRIPTION OF OPERATIONS O O ft tt ee U-J O Uo IJU j< b3 - I-- Q a h- I---- HXI _ l .j -i at a *< < -- n se -* i U* nO M-- -- cMo 3SB 3 33< O -> CJ CO VC 2 v< m v> S u - s-- -- (9 z o w x b sco H rawu-; x--oJ. o o 2 Ul M ^ Q b3 _1 Ul O O X a K 6> Z 5Ia tz u S 8> _b> 8- UJ uui uut uc XB s w u o u Cb u w < s S Isy-ifCOla--xM-- --ecHfi. g - _j 5Ul " o X w ui Ul K X *>* -- s!" i: -- (V a* PW r GLD058932 0049-GLD-000058932 HANSOM INDUSTRIES DESCRIPTION OF OPERATIONS S e a s ic k James ou> s5 tXo -- *- to UOaJ.t o - - o /> un; So t>f> Oo uUa: JB<aCuUJ-Ota-- *x--- u^HJi >aiu U U u. --o* X--o i aO5 u aQO aMo*:- SSV S_ S5 v3Bsw J - O DJ <--a Xt- BQ3 S--tB- x -aI S < " * 5 O U M !j S X W fi. _-- UA. UM DJ. (9 .UJ X < _j t- j *--a go u-- a< iUl 2 US2U- JUt- <*U ll XL-- SB SB -- SC 82 U. (9 -J J 3<3 J mz IiUu tg X u> S x UJ ^x< 5=S 5gg S35 8 g GLD058933 0049-GLD-000058933 SSUJef >jD{Mp3C or z M U Ik 2 3 u-lOO>- Oos> -Ja><O-; oool' S e R CK HANSON INDUSTRIES DESCRIPTION OF OPERATIONS S GLD058934 0049-GLD-000058934 HANSON INDUSTRIES DESCRIPTION OF OPERATIONS ^dgwick James IF IS 3 8 oj O' 5o> SS S 3 3 Uec) UJ 6tf 5 -- * * m gIs | o3 8 5OhuC S35c "ujtfi Su. tu zX= < S<tile 2zK^ i2a-- c*y ; GLD058935 0049-GLD-000058935 ,,<2dgwlck James kr w K ui r o U--ce! < iu S& 3 : o-- << a o IA rf s a_I-l 6J _aI- V<X) in n is Z% *D -4 -*<- O a ui *; a uu> at-- uei-a. ~sai O -i ^ aa xux ckos < P 5 < Z v> GLD058936 0049-GLD-000058936 S?r HANSOM INDUSTRIES DESCRIPTION OF OPERATIONS ?dgwick James KH? a g2 $ 2 ? B* 3asU i 6 i* X tt O (9 se x a --* ~x 32 * tA ataO Ui x I* GX.D058937 0049-GLD-000058937 be KS g2 *0L-U- 0OS- *_t^0ti *OOrt K ri s HANSON INDUSTRIES DESCRIPTION OF OPERATIONS 3 isfc C r-t ose s K * t/> (A os cs ui ee UXi z O< UzJ -- Ui OS < X UI < at iO- u>i iI- ^ur * iiewnf; <a~>u-i iHtrU cn co se tn iu O > K K 9- U 111 UI 5<3ujn-iQK3<zU0auJt -<e1a.*jZb<-r- ox _j on ou j uo . s 3S 0 w-i < - -4 i(/l>l U Ct Ui u j as 2B *- i si W2 IS < UI 5d S2 b. li. V> i ^ M tl gk a uj tf n 685 M UI Ui . 3 u. I- vK> aU Ou- >i/> K lb < Z <30 --K It. O CS > SO > HCA I<- (O IA < M K2 bJ- XU IUK 13 IU Ui b- SC SB O 3 >- Ui O U. C. (4 K U S5 _i SC -4 " si 8 5 o(9 o 2< 5< as ii >UI 5(-5 GLD058938 0049-GLD-000058938 HAHSON INDUSTRIES DESCRIPTION OF OPERATIONS .dgwick James .'i C. S QU) <Cf X3 a%"M*S- Oi. uu2o s"ofe>t. aJox< oM2oo. ft -J fl tikuou- in - ooio g a. GLD058939 0049-GLD-000058939 HANSON INDUSTRIES DESCRIPTION OF OPERATIONS 'dgwick James oKO. vU=> --a IiA ^ (A OO S' >-- u O UJ- B S> * ko uX Ul u sc J < KU -5 Ul _- 8_ _ 3. HI <Jtf J O O 111 O. X J- ~ Ctf o' -i > i- zo t- < o2 O zo u X u. x a. x 5m 0 v> UJ aa Ul S-1 |s CA K 31<1/K>1 5" gg IpUU>--AJ-ll VUJ)* Ul g eUz(Ael <--u2J UI-l -Jt < X(A I-- *t- a UJ z X< s s GLD058940 0049-GLD-000058940 t~ a ee x 111 < a si* s HANSON INDUSTRIES DESCRIPTION OF OPERATIONS Re gu sc e* o * >d h a3 UI _J u^ ca UsJi ui ar . >- se -I a < ~o < > as - * $ k >3- u$ ^5 29 (/3)3 uO uUJ zUI .g 5I UI Oi J0 oW 8 5 C2o` ESS O*- OD >o -J UI 5C _ S 111 i-I Iu UI UI ta k O " --i r~ ISII S<Ua f<.J XMu. 5Q (9 * *U"I S 5St sis M UJ AS AS S3? x =o! pi n % V-p) u*Ji 60 UI IS ogK-> 2a<GoSz M 2 U29LtLf a(A UWI -U D !C xx 0 N <0. 9 X UO2c ZO>" GLD058941 0049-GLD-000058941 3K 5O 5- UJ - O O SW O! O * 5 s t.J- sXe CD X ui- uu u<ci ^S ^ -J -J IA X IU U r fa*--it: asc <-- <rftt su-- *! Is a X uj x -i--u -DJ. Xxo O*-- ( HI > K * -4 *s X"? 3Unel IU * op " a k u>-- i * UIU-ll wUuil' o s s &I Ul tA 6LD058942 0049-GLD-000058942 o as X asI 855 SS S3 HANSON INDUSTRIES DESCRIPTION OF OPERATIONS KlUC/>9l McMU(mA/> ii (9 8 ^2 is: uui ui uj m a. a o. <0 s;as 3I1X --11 uz-- _~p5i -Z--M-J X--u. U>- N- -fpc s ik u a w v> -- "#:s s W<k< UI S K O ec a z S_U<I i^P * <S5 GLD058943 0049-GLD-000058943 HANSON INDUSTRIES DESCRIPTION OP OPERATIONS Sedgwick James iJ 0 O 55 35w D ^ HI Uh -J < m ~ S*x9 5h<y- < Q. M aO 8 & fuifi oA. ; GLD058944 0049-GLD-000058944 UA1ULUJ- 85*86 86-87 87-88 88-89 89-90 HANSGN INDUSTRIES ACTIVE LOSS SUMMARY AL CL PR TOTAL 978.753 1,378,235 6,228,733 8,585,721 721,743 357,178 5,244,885 6,323,806 1,189,498 201,549 2,104,502 3,495,549 841,472 337,047 1,530,958 2,709,477 380,649 928,170 454,429 1,763,248 4,112,115 3,202,179 15,563,507 22.877,801 4 GLD058945 0049-GLD-000058945 85-86 86-87 87-88 88-89 89-90 HANSOM INDUSTRIES DISCONTINUED LOSS SUMMARY 1,133,738 558,422 570,358 1,164,150 271,773 221,242 204,290 72,992 97,829 1.2,300 2,277,988 2,029,106 6,763,313 8,455,473 948,092 2,682,600 624,099 1,117,114 78,996 356,278 95,250 205,379 8,509,750 12,816,844 Lf<A GLD058946 0049-GLD-000058946 American Excess Insurance Association (This application to be used for applicants domiciled in New York State only) THIS IS A REPORTED OCCURRENCE POLICY WHICH CONTAINS CERTAIN FEATURES THAT AF E ANALOGOUS TO THE ONES FOUND IN CLAIMS MADE POLICIES. PLEASE READ tHE ENTIRE POLICY CAREFULLY. "DEFENSE EXPENSES** ARE INCLUDED IN THE LIMITS OF LIABILITY OF THE POLICY AND ARE INCLUDED IN THE "PER OCCURRENCE UNDERLYING AMOUNT". This Policy Application must be completed in its entirety. When appropriate, questions herein may be an swered by specific reference to Form 10K sections(s) or other material attached hereto. 1. (a) Name and Address of Applicant (To appear as Named Insured if policy is issued): Peabody Holding Company 301 North Memorial Drive St. Louis* Missouri 63166 (b) State of Incorporation: (c) Effective Date of Coverage: 10/1/90 2. Subsidiaries or affiliates of Applicant whose accounts are consolidated in the financial statements of the Applicant (attach list or make reference to listing in Form 10K or Annual Report of Applicant). See Exhibit A 3. If Applicant is foreign, attach list of subsidiaries or affiliates whose accounts would have been consoli dated in accordance with generally accepted accounting principles in the United States. 4. List on Schedule A (to be attached to and form a part of the policy when issued) any other subsidiary, affiliate, associated company or joint venture to be insured. AEIA-3-NY 4? 1 GLD058947 0049-GLD-000058947 5. li other than the Named Insured above shall represent all insureds irt all matters under this policy (such as but not limited to: premium payment, negotiation of renewal terms, payment of claims), indicate name and address (to appear as Named Insured's representative if policy is issued): Mr. Donald L. Schoexiewolf Director of Risk; Management Hanson Industries 99 Wood Avenue South Iselin, New Jersey 08830 6. Describe each Joint venture in which the Applicant has an interest greater than 10% and/or which has assets in excess of $25,000,000: Project Name Participant Brief Description of Joint Venture See Exhibit A 7. Attach a copy of the latest Annual Report and Form 10K (or the eQuivalent if not applicable) of the Applicant and each company listed on Schedule A for the most recent year. 8. Estimates of: (a) Annual Payroll (in U.S. dollars) 1 -USA $ 48000,000 2-Canadian $ 0 3-Foreign $_ Inc'l. ........ (b) Annual Sales (in U.S. dollars) i-i ir a R ^ .785,800,000 2-Canadian $Q_____________ 3-Fnrpign S 135,500,000 Describe any `'Inter-Company Sales" exceeding 10% of the total: (c) Number of Employees 1 -USA $ ______ 2-Canadian $ 0_______ 3*Foreign $.2. (d) 1. Annual Advertising Expenditure (in U.S. dollars) s 61,000_____________________________________________________ AE1A-3 2 (4 U GLD05Q948 0049-GLD-000058948  -JSSl 2. Type of media use and proportion of expenditure on each Publications and Public Television News - 1002 ( ------------------------------------------------------------------------------------------ (e) If the Applicant has any exposure under the following, indicate payrolls: 1. Jones Act Q -- 2. Federal Lighty Art None, Peabody does not have any F.E.L.A. Payroll, Railroad Crews are compensated under regular mine payrolls* Est. payroll 9. Automotive power units: (estimated total owned & leased by type) is $2,000,000. (a) Private passenger **6------ Trucks and Tractors -- 228 ------ School buses0 Taxi-Livery ......--... 0................... . (b) Type of cargo hauled (elaborate where inflammabte/explosive substances hauled) Very limited hauling of Ammonium Nitrate or other inflammable materials and such hauling is almost entirely within Peabody premises. (c) Give details of long haul (over 500 miles -- one way) operations Peabody hauling is usually within 50 miles. Almost all hauling over 50 miles is done by contract haulers. ( 10. Description of Operations: (a) Describe any details of operations not otherwise contained in the attached Form 10K or annual report (e.g.. occupancy type risks -- number and size; construction type risks -- tunnel and dam work -- turnkey; utilities -- dams; etc.): See Schedule E (b) Describe any discontinued operations or sold entities for which coverage is required. Describe products and toe disposition of product liability: (c) Describe any areas of expected expansion, change, or new products in next 6 months: A5JA-3 3 GLD058949 0049-GLD-000058949 11. (a) Describe any non-owned, owned, leased or chartered watercraft or watercraft risks for which cov erage is requested: See Schedule "F" See Schedule TIGn (b) Describe any railroad exposures including details of any facilities/operations owned or operated (other than incidental sidings and premises grade crossings): See Schedule "H" (c) Describe any intra-city light-rail exposure (e.g., subway, street car, etc.) for which coverage is requested: No known exposure. Description of Operations Number of Passenger Cars Miles of Track Number of Passengers Annually (d) Describe any bus operations for which coverage is requested: No known exposure. Description of Operations Numberof Buses Miles Travelled Numberof Passengers Annually Inter-city _________________ _____________ ____________ Intra-city _________________ _____________ ____________ School Buses _________________ _____________ ____________ Tours _________________ _____________ ____________ Other _________________ _____________ ____________ AE1A-3 4 LL& GLD058950 0049-GLD-000058950 12. With respect to malpractice and professional liability exposures, state: A. 1. Medical (incidental to other operations): (a) Number of doctors employed: 0 (b) Number of nurses employed:___________* (c) if Hospital or Medical facilities are maintained by the Applicant, give location, number of beds, occupancy rate and other pertinent information: One nurse station. (d) Do any patients, not employees of the Applicant, use the services of such doctors, nurses or hospitals? No known exposure. Indicated percentage of non-employee patients K'A 2. Medical (other than incidental): No known exposure. (a) List all hospitals or medical facilities showing location, number of beds and occupancy rate, outpatient visits: No known exposure. (b) List nursing homes operated showing number of beds: No known exposure. B. Non-medical (e.g.. Architects, Engineers, Accountants, Lawyers, etc.). Describe extent to which such services are provided to third parties: No known exposure. AE1A-3 5 m GLD058951 0049-GLD-000058951 13. Attach a list or describe below the products manufactured, handled, distributed or sold or services performed under the following classifications: Classification (a) Aircraft and/or Aerospace Products or any material or substance supplied di rectly to or for the use by the Aircraft and/or Aero space Industry (b) Pharmaceuticals -- Medical (Submit lists of prescription and nonprescription medical care products) (c) Birth control drugs or devices (d) Chemical and petrochem icals (e) Nuclear energy (f) Pollution control devices (g) Other products, or major services performed Description None Annual Sales Domestic Foreign $$ None None None None None Coal Ammonium Nitrate 1,764,500,000 135,500,000 18,500,000 14. Real & Personal Property: (over $10,000,000 in value per location) (a) Schedule locations of leased premises and indicate use and if Applicant is held harmless and/or named as an additional insured in landlords policy: (b) Schedule locations where persona! property of others is in Applicant's Care, custody or control, (e.g.. Data Processing Equipment. Leased Machinery or Equipment, Goods for Storage or Processing, etc.): AE1A-3 6 GLD058952 0049-GLD-000058952 15. Contractual/Hold Harmless/Indemnity Agreements -- provide details of any which could reasonably be considered to be outside of the scope of those agreements normally entered into by the Applicant in the normal course of operations and any other such agreements which may be material to the Appli cant's legal Batnlity or where the sole negligence of the indemnity is assumed: Coal supply and other Agreements often require Peabody's indemnification of other party fog losses arising from Peabody's operations* These contracts normally require the other party to assume responsibility for their own actions. 16. Describe loss control and loss prevention measures which Applicant employs and would like the under writer to consider. Attach a copy of the program if appropriate. Is the program seif-administered? if administered by a service company or insurance company, name of administrator: __________________See Schedule "I"____________________________________________ 17. List on Schedule B all liability insurance of the Applicant List layered policies in: ascending order of attachment inclucfing layers retained by Applicant _____ See Schedule nBH 18. As Respects Underlying Insurance (respond below or in additional comments column on Schedule B|: (a) Explain any exclusions to standard General Liability Policy coverage: Subsidence is excluded from primary CGL. but included-in Excess Liability coverage. (b) Indicate deductibles, self-insured retentions, retrospective rating plans or other funding mecha nisms in the amount of $1 million or more per occurrence/accident: - See Schedule "I" 19. List on Schedule C a summary of losses by year (insured and uninsured) for the past 10 years by line of coverage, e.g.: (a) Automobile Liability (b) General Liability (c) Products and Completed Operations Liability (d) Etc. See Schedule nCn AEIA-3 7 GLD058953 0049-GLD-000058953 20. indicate any losses included on Schedule C .which are caused by or alleged to be caused by pollution: Ho pollution losses contained in Schedule "C1^ 21. On Schedule D itemize and give details on all losses shown on Schedule C which exceed $1,000,000. (Paid, outstanding, and allocated expenses), (a) caused by a single occurrence, and separately. (b) caused by any defect or hazard or alleged defect or hazard associated with insured's product or operations completed or abandoned by the Applicant 22. If any of the losses on Schedules C or D have been handled or reserved amounts established through a service contract rather than by an insurance company for its own account, give details below. (In* elude name of individual or organization; if Applicant has self-administered his own losses, furnish infor mation about individuals) responsible fa handling and their qualifications and procedures: if a claim audit has been made in the past year by an independent service, attach report). Subsidence cla-*TM** - See Schedule "J" 23. Is the Applicant aware of: (a) any event or conditions which might reasonably be expected to give rise to a loss or liability in excess of $1,000,000? Describe: (b) any defect or hazard or alleged defect or hazard associated with the Applicant's products or operations completed or abandoned by the Applicant which might reasonably be expected to give rise to a toss or liability in excess of $1,000,000 in aggregate? Describe: 24. Describe any ongoing investigations into the Applicant's products or operations by any governmental body: AEIA-3 8 SO GLD058954 0049-GLD-000058954 25. Additional Comments (optima) Refer to Schedules "K", "L", "M" , "N", "0" AE1A-3 9 Si GLD058955 0049-GLD-000058955 AMERICAN EXCESS INSURANCE ASSOCIATION 26 * THE APPLICANT, BASED ON REASONABLE INQUIRY (INCLUDING BUT NOT LIMITED TO REASONABLE INQUIRY OF THE LEGAL AND RISK MANAGEMENT DEPARTMENTS OF THE APPLICANT), WARRANTS TO THE BEST OF ITS KNOWLEDGE' AND BELIEF THAT THE STATEMENTS SET FORTH HEREIN ARE TRUE AND THAT NO MATERIAL INFORMATION HAS BEEN WITHHELD. IT IS UNDERSTOOD THAT THE COMPANY MAY REQUEST ADDITIONAL INFORMATION WHICH, WHEN SUBMITTED, WILL BECOME PART OF THIS APPLICATION AND SUBJECT TO THE FOREGOING WARRANTY. SIGNING OF THIS APPLICATION DOES NOT BIND THE COMPANY TO OFFER, NOR THE APPLICANT TO ACCEPT INSURANCE, BUT IT IS AGREED THAT THIS APPLICATION SHALL BE THE BASIS OF THE INSURANCE SHOULD A POLICY BE ISSUED. BY SIGNING THIS APPLICATION, THE APPLICANT ACKNOWLEDGES THAT IT HAS RECEIVED THE ATTACHED SPECIMEN POLICY AND AGREES TO BE BOUND BY THE MANDATORY ARBITRATION PROVISION SHOULD A POLICY BE ISSUED. THE APPLICANT FURTHER WARRANTS THAT IF THE INFORMATION SUPPLIED ON THIS APPLICATION CHANGES BETWEEN THE DATE OF THIS APPLICATION AND THE INCEPTION DATE OF THE POLICY PERIOD, IT WILL IMMEDIATELY NOTIFY THE COMPANY. THE APPLICANT FURTHER ACKNOWLEDGES THAT IT HAS RECEIVED INFORMATION FROM THE COMPANY DESCRIBING THE LIMITED SCOPE OF COVERAGE AND THE POTENTIAL COVERAGE GAPS INHERENT IN THE POLICY FORM. FURTHER, THE APPLICANT ACKNOWLEDGES THAT IT IS AWARE THAT THE LIMITS OF LIABILITY CONTAINED IN THE POLICY SHALL BE REDUCED, AND MAY BE COMPLETELY EXHAUSTED, BY "DEFENSE EXPENSES" AND, TO THE EXTENT THAT POLICY LIMITS ARE THEREBY EXCEEDED, THE COMPANY SHALL NOT BE LIABLE FOR "DEFENSE EXPENSES" OR FOR THE AMOUNT OF ANY JUDGMENT OR SETTLEMENT. THE COMPANY HEREBY ADVISES THE APPLICANT OF ITS RIGHT, UPON WRITTEN REQUEST, TO AN ACCOUNTING OF "DEFENSE EXPENSES" ACTUALLY PAID BY THE COMPANY UNDER THIS POLICY. NEW YORK LAW MANDATES THAT THE FOLLOWING WARNING BE GIVEN: "ANY PERSON WHO KNOWINGLY AND WITH INTENT TO DEFRAUD ANY INSURANCE COMPANY OR OTHER PERSON FILES AN APPLICATION FOR INSURANCE CONTAINING ANY FALSE INFORMATION, OR CONCEALS FOR THE PURPOSE OF MISLEADING, INFORMATION CONCERNING ANY FACT MATERIAL THERETO, COMMITS A FRAUDULENT INSURANCE ACT, WHICH IS A CRIME." APPLICANT: ' BY (OFFICER OF APPLICANT) : (Type) 7 j > K/ (Signature) TITLE: (Type) DATE: (Type) (IMPORTANT: PRODUCER SIGNATURE REQUIRED ON THE NEXT PAGE) AEIA-3-NY 10 O5 GLD058956 0049-GLD-000058956 SEP 13 'S3 10:02 F S JAMES ... AMERICAN EXCESS INSURANCE ASSOCIATION P.2 2$. TBS APPLICANT, BASED OH REASONABLE INQUIRY (INCLUDING BUT NOT LIMITED TO REASONABLE ' INQUIRY OF IKE LEGAL AND RISK MANAGEMENT DEPARTMENTS OF THE APPLICANT) , WARRANTS TO THE BEST OF ITS KNOWLEDGE AND-BELIEF THAT THE STATEMENTS SET FORTH HEREIN ARE TRUE AND THAT NO MATERIAL INFORMATION MAS BEEN WITHHELD* XT IS UNDERSTOOD THAT THE COMPANY MAY REQUEST ADDITIONAL INFORMATION WHICH, WHEN SUBMITTED, WILL BECOME PART OF THIS APPLICATION AND SUBJECT TO THE FOREGOING WARRANTY*' ` SIGHING OF THIS APPLICATION DOES ROT BIND THE COMPANY TO OFFER, NOR THE APPLICANT TO ACCEPT INSURANCE, BUT ZT IS AGREED THAI THIS APPLICATION SMALL BE THE BASIS OF THE INSURANCE SHOULD A POLICY SR ISSUED* . BY SIGNING THIS APPLICATION, THE APPLICANT ACKNOWLEDGES THAT IT HAS RECEIVED THE ATTACHED SPECIMEN POLICY AND AGREES TO SB BOUND BY THE MANDATORY ARBITRATION PROVISION SHOULD A POLICY BE ISSUED. THE APPLICANT FURTHER WARRANTS THAI IF THE INFORMATION SUPPLIED OH THIS APPLICATION CHANGES BETWEEN IKS DATE OF THIS APPLICATION AND THE INCEPTION DATE OF THE POLICY PERIOD, IT WILL IMMEDIATELY NOTIFY THE COMPANY. THE APPLICANT FURTHER ACKNOWLEDGES THAT IT HAS RECEIVED IBFORHATIOH FROM THE COMPANY DESCRIBING THE LIMITED SCOPE OF COVERAGE AND THE POTENTIAL COVERAGE GAPS INHERENT IN THE POLICY FORK. FURTHER, THE APPLICANT ACKNOWLEDGES THAT IT 1$ AWARE SHAT THE LIMITS OF LIABILITY CONTAINED IN THE POLICY SHALL BE REDUCED, AND KAY BE COMPLETELY EXHAUSTED, BY "DEFENSE EXPENSES" AND, TO THE EXTENT THAT POLICY LIMITS ARE THEREBY EXCEEDED, THE'COMPANY SHALL NOT BE LIABLE FOR "DEFENSE EXPENSES" OR FOR THE AMOUNT OF ANY JUDGMENT OR SETTLEMENT. THE COMPANY HEREBY ADVISES THE APPLICANT OF ITS RIGHT, UPON WRITTEN REQUEST, TO AN ACCOUNTING OF "DEFENSE EXPENSES" ACTUALLY PAID BY THE - COMPANY UNDER THIS POLICY. NEW YORK LAW MANDATES THAT THE FOLLOWING WARNING BE GIVEN: - "ANY PERSON WHO KNOWINGLY AND WITH INTENT TO DEFRAUD ANY INSURANCE COMPANY OR OTHER PERSON FILES AH APPLICATION FOR INSURANCE CONTAINING ANY FALSE INFORMATION, OR CONCEALS FOR THE PURPOSE OF MISLEADING, INFORMATION CONCERNING ANY FACT MATERIAL THERETO, COMMITS A FRAUDULENT INSURANCE ACT, WHICH IS A CRIME," APPLICANT: * Peabody Coal Co* (Type) BY (OFFICER OF APPLICANT) i Donald L. Schoenewolf AEIA-3-NY E"d 10 S3Wbf S J 90:TT 06, 91 JR c3 GLD058957 0049-GLD-000058957 ( { GLD058958 0049-GLD-000058958 Submitted by (a duly authorized insurance producer representing a member of the Association): Name of Firm: Sedgwick James o New England, Inc. (Type) Complete Mailing Address: 40 Broad Street. Boston. MA 02109 (Type) Phone: 617-357-6600 Telex:;:Fax: 617-357-5755- Name of Authorized Representative: Joseph F Zavagnin, Vice President____________ ___ ,, (Type) (Signaore) Association Member Represented: Producers domiciled in Delaware, Maryland, New Jersey, New York, Pennsylvania and Canada should return the completed application to: American Excess insurance Association Two World Trade Center Suite 3370 New York. NY 10048 Phone Number (212) 466-0097 Telex Number: 62943427 Fax Number: (212) 466-6303 All other producers should return the completed application to: American Excess Insurance Association RiverBend Executive Park 77 Hartiand Street. Suite 400 East Hartford, CT 06108 Phone Number: (203) 528-2105 Telex Number 62943426 Fax Number: (203) 282-9393 AE1A-3-NY 11 GLD058959 0049-GLD-000058959 SCHEDULE UC Page 1 of 3 PEABODY ANNUAL AGGREGATE LIABILITY CLAIMS ANALYSIS Valued as of March 15, 1990 Products Liability and Completed Operations Liability Combined: Year 1) 1980 2) 1981 3) 1982 4) 1983 5) 1984 6) 1985 7) 1985 8) 1987 9) 1988 10) 1989 Annual Aggregate Amount Number of Cl alms NO PRODUCTS OR COMPLETED OPERATIONS CLAIMS IN LAST 10 YEARS Subsidence Liability Aggregate Amounts: 1) 1980 2) 1981 3) 1982 4) 1983 5) 1984 6) 1985 7) 1986 8) 1987 9) 1988 10) 1989 $ 342,976 334,286 1,013,565 842,504 467,599 1,352,977 490,105 83,362 315,380 132,795 21 24 23 29 30 32 21 24 27 20 NOTE : Pre-Acquisition claims for new entities are not included. Number of subsidence claims includes potential claims as determined by Peabody personnel. The above includes claims paid or reserved at $1 or more. fc, ics GLD058960 0049-GLD-000058960 SCHEDULE "C1 Page 2 of 3 PEABODY ANNUAL AGGREGATE LIABILITY CLAIMS ANALYSIS Valued as of March 15, 1990 General Liability Aggregate> Amounts: Year 1) 1980 2) 1981 3) 1982 4) 1983 5) 1984 6) 1985 7) 1986 8) 1987 9) 1988 10) 1989 Annual Aggregate Amount $ 85,861 242,519 544,538 368,740 260,303 353,139 264,959 140,782 49,921 78,535 Number of Claims n 21 19 24 34 25 32 13 10 8 Auto Liability Aggregate Amounts: 1) 1980 2) 1981 3) 1982 4) 1983 5) 1984 6) 1985 7) 1986 8) 1987 9) 1988 10) 1989 $ 164,852 60,842 206,353 220,252 52,192 337,652 61,092 39,571 42,989 34,290 77 67 67 57 51 69 30 42 22 14 NOTE: Pre-Acquisition claims for new entitles are not included. The above includes Gl-PD in excess of $5,000 and others paid or reseved at $1 or more. The General Liability losses shown above do not include "Blanford" claims which total $3 million, shared by 101 claimants at 43 households. These losses are not included because neither the dates of losses nor the amounts covered by insurance have been determined at this time. SI GLD058961 0049-GLD-000058961 PEABODY SCHEDULE "C" Page 3 of 3 ANNUAL AGGREGATE LIABILITY CLAIMS ANALYSIS Valued as of March 15, 1990 Wharfowners Liabibility Aggregate Amounts: Year 11 1980 2) 1981 3) 1982 4) 1983 5) 1984 61 1985 7) 1986 8) 1987 9) 1988 10) 1989 Annual Aggregate Amount $ 570 6,557 59,710 39,504 2,025 NONH E 11 m Number of Claims 1 2 6 2 1 NONit E H n n Empl oyers Liability Aggregate Amounts: (Valued as ot January iy, lyyui 1) 1980 2) 1981 3) 1982 4) 1983 5) 1984 6) 1985 7) 1986 8) 1987 9) 1988 10) 1989 $ 408,500 NONE 3,500 NONE 122,774 43,694 29,189 137,254 25,000 NONE 1 NONE 1 NONE 3 2 2 3 1 NONE NOTE: Above does not include Eastern Associated Coal Co. Employer's Liability losses incurred prior to their purchase by Peabody holding Company, Inc. on March 31 1987. ST GLD058962 0049-GLD-000058962 AMERICAN EXCESS INSURANCE ASSOCIATION SCHEDULE D INDIVIDUAL LOSS INFORMATION 44 c Q3J iaS__ <Vo/>* ue: -i l/l 3 V) 3 <u c 3 >-> 4-* 1/1 <0 3 L- 3c S, o to 3 V p-- o O.T- t/1 4-- X 3 3 3 1-- Ui Q. O' o oo o o o o> o c 3 <n as *cro- f1>- -4u) 4we1 V id Vi U 4) O -M 3 O o. 4- I-- v> r-- r- X P Ux-UJ o 3 X< o Ui o U X oQ o c r-- <+- * o o o A O3 4* -o 3 in v* O sr f- 3 3 +J 3> + 3 W Q_ Q r- t> c s 3 tfl O 3 3 3 r-- Ol. oXo 00 T3 re 44 o 41 pw O |_ < X UI ui 00 3 oX CO H- UJ ** o=5 c o p. 44 3 O Pi CL 3. c 3 XT 4- <4 r-- CM S 3 44 p 3 3 r> 3 C r O 3 3 4a V) 1" * 5 3 3 O T-* 4<-- u in 4>> 3 O a..- 3 V* m .s c - 3 L> O 33 Q. r* 3 lo > 3 Sce s o a. 4- >*. in 44 in CL o .--------u u 4mO 3 O in in $5 10 Q 4- O 3 4- CT! o ro i_ 33 C> r- O _i CJ ) ) GLD058963 0049-GLD-000058963 SCHEDULE F >- ca o s 3C oSl o <rO_e> & o a & uo rO oo 4? JoorO3e. CM CO CM CM a? >re r<1e> 4>>, <0 -r- V) S_ I--4CrCe> -3= <s re* < -J of-- ==>c re QJ 0> a> S(0 E Ere Ere to co CO CO o o o m r- V* cn #k rC-O. to- { Ul O oUJ <> OS 35 -J CO_J 3 -* = 3= oo oo oo oo otoIk oA o oo oo roo pm-- ip--n ru--o -CO- O o o m o in wr-. lO ccoo P* 0C-J c*- UJ O >- CD , uj as CO UJ cC 3c OO = a. oeo co cm ismiois 05 05 05 05 fl ft>B o o in o to O 05 O O ID Cf CO CO co 0as 3o to H* CO NO CO !-. t-> in c m r-- 0) 3: O <u f-- O l> .Q 3 CO U reoU h-- 3 -q a> o 3< <M a. S i/l r-- P-H CD re a -o w> o 3 0J p- <P >-- 4-> O' to ooi-s O Lbl H-- H- *-4 3* S 3- > 3 to ssss <re/) er rse. a OS c -- Pre <u E CM rae u o o 3 CM >t 1-- p rce 3Vxp: cre e rue a_ o05 co GLD058964 0049-GLD-000058964 IMTSgQPFXCB COMMQHXCATiaS FARMINGTON MANAGEMENT. IMG TO: File FROM: Allen Lyons BATE: October 1, 1990 SUBJECT; Hanson Industries Renewal effective 10-1-90/91 This is to document the understandings we had with Sedgwick James after we initially quoted the renewal of this account. On September 24, 1990 we were advised that the Risk Manager expects that the entities as listed on the last five pages of Exhibit 1 will be sold during the coming policy year. In fact, they will probably be sold within six months. The impact on sales of these entities reduces our sales estimates from $7.5 Billion worldwide and $7.1 Billion U.S. to $6.5 Billion and $6.1 Billion, respectively. On September 29, 1990 we were advised that the Grove Company sales should be about $180 Million in lieu of the $383 Million we used in our rating. This information reduced our sales estimate to $6.3 Billion worldwide and 5.9 Billion U.S. In view of the above changes we agreed to revise our quotation to $1,365,000. G0h--* Allen F. Lyons, Sr. Account Analyst Farmington Management, Inc. General Managers for American Excess Insurance Association Gl GLD058965