Loading...
HomeMy WebLinkAboutDocumentation_Regular_Tab 16_9/9/2021Agenda Item #16. Regular Council STAFF MEMO Meeting: Regular Council - Sep 09 2021 Staff Contact: Jeremy Allen, Village Manager Department: Parks and Rec RESOLUTION NO. 46-21, A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, FLORIDA, AUTHORIZING THE PURCHASE OF BUILDERS RISK INSURANCE FROM CERTAIN UNDERWRITERS AT LLOYD'S OF LONDON IN CONNECTION WITH THE CONSTRUCTION OF THE COMMUNITY CENTER AT CONSTITUTION PARK, PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. Construction of the new Community Center at Constitution Park is well underway. To protect its insurable interest in the existing structure, materials, fixtures and/or equipment awaiting installation, it is advisable that the Village acquire Builders Risk Insurance. Builders risk insurance (also known as "course of construction" coverage) protects the Village's interest during the course of construction of the new community center. The insurance marketplace for municipalities is limited and the Village's insurance broker thoroughly researched the insurance marketplace and presented an insurance placement which addresses the needs and exposures of the Village in connection with the desired coverage. The Village received two (2) written quotes. Two other entities issued "Statements of No Bid" - Argo Specialty Insurance Co. and Everest National Insurance Co. Considering the nature of the insurance market for municipalities and given the type of coverage desired by the Village, staff hereby recommends acceptance of the Builders Risk Quotation from Lloyd's of London, as referenced in Exhibit A, reflecting a total policy premium of $31,151.20. Bid Summa Carrier Policy Period Premium Notes Lloyd's of London 08/16/2021 — $31,151.20 Includes Flood and 02/14/2022 Earthquake Coverage Zurich American Ins. 08/27/2021 — $25,559.00 Excludes Flood and Co. 02/27/2022 Earthquake Coverage This document and any attachments may be reproduced upon request in an alternative format by completing our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561-768-0443. Page 156 of 250 Agenda Item #16. Staff recommends acceptance of Builders Risk Insurance quotation as reflected in Exhibit "A." RESO. 46-21 BUILDERS RISK INS ADA EXHIBIT A Builders Risk Amlink Zurich Quote - Village of Tequesta quote 2 Page 157 of 250 Agenda Item #16. RESOLUTION NO. 46-21 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, FLORIDA, AUTHORIZING THE PURCHASE OF BUILDERS RISK INSURANCE FROM CERTAIN UNDERWRITERS AT LLOYD'S OF LONDON IN CONNECTION WITH THE CONSTRUCTION OF THE COMMUNITY CENTER AT CONSTITUTION PARK, PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. WHEREAS, construction of the new Community Center at Constitution Park is well underway; and WHEREAS, to protect its insurable interest in the existing structure, materials, fixtures and/or equipment awaiting installation, the Village Council deems it necessary and proper to acquire Builders Risk Insurance; and WHEREAS, the Village's insurance broker thoroughly researched the insurance marketplace and presented an insurance placement which addresses the needs and exposures of the Village in connection with the construction of the Community Center; and; WHEREAS, Village staff recommends acceptance of the Builders Risk Quotation, as referenced herein as Exhibit A, reflecting a total policy premium of $31,151.20. NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS: Section 1: Resolution No. 46-21 is hereby officially adopted; Section 2: The Village Council hereby authorizes the Village Manager to purchase Builders Risk Insurance from certain underwriters of Lloyd's of London, as reflected in Exhibit "A." Section 3: Conflicts. All resolutions or parts of resolutions in conflict with the provisions of this Resolution are hereby repealed and rescinded. Section 4: Severability. If any section, subsection, sentence, clause, phrase, word, or portion of this Resolution is for any reason held invalid or unconstitutional by a court of competent jurisdiction, whether for substantive or procedural reasons, such portion shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions of this Resolution. Section 5: This Resolution shall become effective immediately upon passage. Page 158 of 250 Agenda Item #16. EXHIBIT A Page 159 of 250 Agenda Item #16. AAMWINS" BROKERAGE August 16, 2021 Tina Tower Patriot Insurance Agency LLC 13901 U.S. Highway 1, Suite 8 Juno Beach, FL 33408 RE: Village of Tequesta Amwins Brokerage of Florida, Inc. 7108 Fairway Drive Suite 200 Palm Beach Gardens, FL 33418 amwins. com BUILDERS RISK QUOTATION Please find the attached quotation for Village of Tequesta. Here is a summary of the terms and conditions: INSURED: Village of Tequesta MAILING ADDRESS: 345 Tequesta Drive Tequesta, FL 33469 CARRIER: Certain Underwriters at Lloyd's, London (Non -Admitted) PROPOSED POLICY PERIOD: From 8/16/2021 to 2/14/2022 12:01 A.M. Standard Time at the Mailing Address shown above POLICY PREMIUM: Premium $29,414.00 Fees $250.00 Surplus Lines Taxes and Fees $1,487.20 Total $31,151.20 TRIA OPTIONS: TRIA can be purchased for an additional premium of $1,471 + tax = $1,544.55. Signed acceptance/rejection required at binding. MINIMUM EARNED PREMIUM: As per policy form COMMISSION: 10.000% of premium excluding fees and taxes SUBJECTIVITIES: Please see All Terms & Conditions on the attached Quote. All Forms, Endorsements and Exclusions available upon request. In Addition to the Items Requested on the attached quote, To Bind Coverage, please return: -Completed and Signed Application -Completed and Signed Terrorism Form (if applicable) -Agent's Completed and Signed S/L Disclosure Form Page 1 of 2 Page 160 of 250 Agenda Item #16. SURPLUS LINES TAX SUMMARY HOME STATE: Florida FEES: Fee Taxable Amount Amwins Service Fee Yes $250.00 Total Fees SURPLUS LINES TAX CALCULATION: $250.00 State Description Taxable Premium Taxable Fee Tax Basis Rate Tax Florida Surplus Lines Tax $29,414.00 $250.00 $29,664.00 4.940% $1,465.40 Stamping Fee $29,414.00 $250.00 $29,664.00 0.060% $17.80 DEM EMP Flat $4.00 Total Surplus Lines Taxes and Fees $1,487.20 Important Notice: Surplus Lines Tax Rates and Regulations are subject to change which could result in an increase or decrease of the total Surplus Lines Taxes and Fees owed on this placement. If a change is required, we will promptly notify you. Any additional taxes owed must be promptly remitted. The attached Quotation from the carrier sets forth the coverage terms and conditions being offered. Please review carefully with your client as terms and conditions may differ from those requested in your submission. It is your responsibility to ensure the quoted coverage terms and conditions are sufficient to meet your client's coverage needs. If after reviewing you should have any questions or requested changes, please let us know as soon as possible so we can discuss with the carrier prior to the effective date of coverage. Thank you for the opportunity to provide this Quotation and I look forward to hearing from you. Sincerely, Andrea Ford Executive Vice President I Amwins Brokerage of Florida, Inc. T 561.847.8485 1 F 877.570.9323 1 Andrea. Ford@amwins.com 7108 Fairway Drive I Suite 200 1 Palm Beach Gardens, FL 33418 1 amwins.com License OF41738 Page 2 of 2 Page 161 of 250 Age to "HIGHLAND INSURANCE SOLUTIONS ® QUOTATION ❑ BINDER DATE: 08/16/2021 COMPANY POLICY NUMBER: ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................10....................................................................... NOTICE: The Company offering coverage is a Surplus Lines insurer, regulated by Surplus Lines insurance laws. It is the responsibility of the Surplus Lines Broker to ensure those laws are followed, and to collect and remit any applicable taxes, surcharges, stamping or other fees. NAMED INSURED: Village of Tequesta ....................................................................................... MAILING ADDRESS: 345 Tequesta Dr Tequesta, FL 33469 ................................................................................................................................................................................... ISSUING COMPANY (the "Company"): As Per Schedule of Insurers COMPANY FINANCIAL RATINGS: AM Best: "A" ADDITIONAL INSURED: N/A LOSS PAYABLE: Insured PRODUCER: AmWINS & # 7108 Fairway Drive, suite 200 Palm Beach Gardens, FL 33418 Attn: Andrea Ford INSURED PROJECT LOCATION: 399 Seabrook Rd, Jupiter, FL 33469 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ INSURED PROJECT DESCRIPTION: Midterm construction of a single -story, masonry non-combustible, 14,799 sq. ft. community center. Work is 40% complete. POLICY PERIOD: Effective Date: 08/16/2021 at 12:01 am Expiration Date: 02/14/2022 at 12:01 am Standard Time at the location of the Insured Project. Project Term: 182 days POLICY FORM: Builders Risk Coverage Form Page 162 of 250 Agenda Item #16. ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ ESTIMATED TOTAL CONTRACT VALUES: Hard Costs $5,938,954 Owner Supplied Material (Miscellaneous) Not Covered Existing Structures Not Covered Loss of Gross Earnings Not Covered Loss of Rental Income Not Covered Soft Costs Not Covered Estimated Total Contract Value $5,938,954 *Subject to premium adjustment at completion of the project ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ PARTICIPATION: 100.00% being $5,938,954 part of $5,938,954 ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ POLICY LIMIT: The Company will not be liable for more than its proportion of $5,938,954 in any one Occurrence and further subject to its proportion of the following limits, sublimits and aggregate limits: ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ POLICY SUBLIMITS & AGGREGATE LIMITS: ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Hard Costs $5,938,954 Owner Supplied Material Not Covered Existing Property Not Covered Loss of Gross Earnings Loss of Rental Income Soft Costs/Additional Expenses Not Covered Not Covered Not Covered Transit (per conveyance) $100,000 Offsite Temporary Storage and/or Offsite Fabrication (per location) $100,000 Expediting Expense Lesser of 25% of the Loss or $100,000 Trees, Shrubs, Plantings and Landscaping (maximum $2,500 per item including landscape) $50,000 Plans, Blueprints, Drawings, Electronic Data, Renderings, Specifications or Other Contract Documents & Models $25,000 Fire Brigade Charges & Extinguishing Expenses $25,000 Debris Removal Lesser of 25% of the Loss or $100,000 Ordinance & Law / Demolition & Increased Cost of Construction $250,000 Extra Expense Not Covered Pollution & Contamination Cleanup & Decontamination (Policy Aggregate) $10,000 Claim Preparation Costs $25,000 Mold & Fungus Remediation (Policy Aggregate) $10,000 Architects and/or Engineers Fees in restoration following an insured loss $25,000 Earth Movement ❑ annual aggregate ® policy aggregate $5,938,954 Flood ❑ annual aggregate ® policy aggregate $5,938,954 The above sub -limits outlined for Flood are included within the general aggregate for Flood and do not increase the Limits of Liability. Windstorm ❑ annual aggregate ® no aggregate ❑ policy aggregate $5,938,954 Named Windstorm ❑ annual aggregate ® no aggregate ❑ policy aggregate $5,938,954 TIME LIMITS: Hot Testing Period Not Covered Periods of Occupancy or Commercial Service 4 Consecutive Weeks Period of Indemnity— Loss of Gross Earnings, Loss of Rental Income, Soft Costs Not Covered 1. In no event shall these sublimits of liability increase the Limit of Liability. Sublimits are part of the policy limit, not in Page 163 of 250 Agenda Item #16. addition thereto. 2. Application of all sublimits is per occurrence unless noted otherwise. 3. Coverage shall only apply when a sub -limit is shown under Policy Sublimits & Aggregate Limits section. 4. Coverage is excluded when a sublimit is shown as Not Covered. 5. When a sublimit indicates an annual aggregate applies, the sublimit shown is the most we will pay for loss during a policy year. DEDUCTIBLES: The applicable amount shown below shall be deducted for each claim arising from insured loss or damage in any one Occurrence. The Company shall be liable only for its proportion of the amount of insured loss or damage in excess thereof, subject to all terms and conditions of the policy. Physical Loss of or Damage to Property Insured $25,000 Water Damage other than Flood $150,000 Collapse $25,000 Flood $100,000 Earth Movement $50,000 Windstorm and Hail $50,000 Named Windstorm 3% of the total insured values at risk at the time and place of loss subject to a minimum deduction of $100,000 as respects the peril of NAMED WINDSTORM Hot Testing Not Covered Loss of Gross Earnings/Loss of Rental Income/Soft costs Not Covered 1. For any coverage where a deductible is not shown, the standard "physical loss or damage to property insured" deductible shall apply. 2. When a percentage (%) is entered absent a corresponding minimum dollar amount, the percentage shall be applied without minimum. When a dollar amount is entered absent a corresponding percentage (%), the word minimum is deleted. 3. In the event that more than one deductible applies in any one occurrence, only the largest shall be applied. ANNUAL RATES (unless noted otherwise): Flat/$100 Physical Damage NC/$100 Physical Damage Existing Property Included/$100 Flood Included/$100 Earth Movement Included/$100 Named Windstorm if applicable (Monthly Rate effective from June Vt to November 30th NC/$100 Loss of Gross Earnings NC/$100 Loss of Rental Income NC/$100 Soft Costs NC/$100 Hot Testing (Monthly) Note: Rates are applied against declared estimated total contract values and estimated project term TOTAL TERM POLICY PREMIUM TOTAL CERTIFIED TERRORISM PREMIUM TOTAL POLICY PREMIUM $29,414 $1,471 $30,885 PREMIUM: 1. Cancellation: 30 days except 10 days for non-payment of premium. (subject to 10% short rate cancellation if Insured cancels the policy) 2. Premium Payment Terms: Premium is payable within 30 days of Policy Inception. Page 164 of 250 Agenda Item #16. 3. 25% of the premium is fully earned on the Effective Date, and not subject to return or refund. 4. Applicable Surplus Lines taxes and fees are in addition to the premiums stated above. POLICY TERRITORY: While located at the location of the Insured Project and while in transit within and / or offsite storage within the fifty (50) states comprising the United States of America, and within the District of Columbia including the territorial coastal waters of any of the foregoing. PERILS INSURED: All risks of direct physical loss of or damage to property insured while at the location of the Insured Project subject to the terms, conditions and exclusions in the Builders Risk Coverage Form. VALUATION: As per Builders Risk Coverage Form POLICY FORMS & ENDORSEMENTS APPLICABLE: HTKP002 Schedule of Insurers HTKC001 Builders Risk Coverage Form HTKE078 Cyber Loss Limited Exclusion OTHER TERMS APPLYING: Fenced Jobsite Exterior Lighting All doors and windows locked during non -working hours Any deviation(s) from the above terms could be considered a material increase in hazard that changes the insurability of the risk and/or the premium quoted. The Company must be notified of such deviation(s) and the insured will, on demand, pay the premium for such increased hazard for the term of the use thereof, otherwise this policy will be null and void. COMMENTS: Additional Terms and Conditions: ~ 1. This quotation or binder is based upon the information provided in the submission and subsequent documentation. The terms and conditions of this quotation or binder take precedence over any other terms and conditions in the submission. Please review this document carefully. 2. If there is any material change in the loss history or other pertinent underwriting information we reserve the right to amend or withdraw this quotation or binder. 3. This quotation or binder is conditioned upon your agreement to accept delivery of the policy and any endorsements and policyholder notices by electronic means. Your acceptance of this quotation or binder signifies your agreement to this. 4. The Company reserves the right to conduct inspections of insured properties. 5. Terrorism — Coverage is available at your option. You must choose to accept or reject coverage. (a) If you Accept coverage you must advise us at binding and add the premium shown on the attached Disclosure Notice to other premiums stated herein and remit to the Company within 30 days. (b) If you Reject coverage, you must sign the attached Disclosure Notice and return it to the Company immediately. If you reject coverage All Terrorism coverage will be excluded. Page 165 of 250 Agenda Item #16. 6. This document will be valid until 60 days from date of quotation. Because the general underwriting requirements of the Company may change, we reserve the right to withdraw or amend this document and proposal at any time. An Indication is an expression of interest in writing the account subject to the pricing, terms and conditions set forth in the Indication, but does not constitute a Quotation. An Indication does not constitute an offer to provide the insurance, nor may a binder be issued based upon an Indication. When this document is presented as a Quotation and not an Indication then it is an offer to provide insurance but does not constitute a binder. Coverage can only be bound on behalf of when confirmed in writing by the undersigned or their authorized designee and then based strictly on the terms and conditions outlined in this document unless otherwise modified and confirmed in writing at or prior to the time of binding. 8. Office of Foreign Assets Control (OFAC) Disclosure Notice: This proposal or resulting binder, the continuation of any bound insurance, and any payments to you, to a claimant or to another third party, may be affected by the administration and enforcement of U.S. economic embargoes and trade sanctions by the office of Foreign Assets Control (OFAC), if we determine that any such party is on the "Specialty Designated Nationals or Blocked Persons" list as maintained by Office of Foreign Assets Control. When this document is presented as a binder as indicated on Page 1, items number 6 and 7 above are deleted. ADDITIONAL UNDERWRITING INFORMATION REQUIRED AS A CONDITION OF BINDING COVERAGE AND UNLESS NOTED BELOW DUE WITHIN THIRTY (30) DAYS OF BINDING WITH THE COMPANY. if an item is checked (x) below it is a required part of the basis for the terms and conditions set forth herein. Any items) outstanding at the time a binder is requested may be cause for withdrawal or amendment of these terms and conditions ® Pictures of existing structure and/or between structure and Project Site ® No Known Loss or Reported Loss Letter Prior to Binding Coverage ® Line Item Breakdown of Contract Award Amount ® Most current CPM Schedule, Critical Path or Bar Chart / Time Line ® Site or Plot Plan ® Statement of contractor experience with similar projects ® Surplus Lines Broker ® Surplus Lines Number ® Signed Tria Accepted or Rejected = ,A ka Page 166 of 250 Agenda Item #16. POLICYHOLDER DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE You are hereby notified that under the Terrorism Risk Insurance Act of 2002, as amended ("TRIA"), that you now have a right to purchase insurance coverage for losses arising out of acts of terrorism, as defined in Section 102(1) of the Act, as amended: The term "act of terrorism" means any act that is certified by the Secretary of the Treasury, in consultation with the Secretary of Homeland Security and the Attorney General of the United States, to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property, or infrastructure; to have resulted in damage within the United States, or outside the United States in the case of an air carrier or vessel or the premises of a United States mission; and to have been committed by an individual or individuals, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. Any coverage you purchase for "acts of terrorism" shall expire at 12:00 midnight December 31, 2027, the date on which the TRIA Program is scheduled to terminate, or the expiry date of the policy whichever occurs first, and shall not cover any losses or events which arise after the earlier of these dates. YOU SHOULD KNOW THAT COVERAGE PROVIDED BY THIS POLICY FOR LOSSES CAUSED BY CERTIFIED ACTS OF TERRORISM IS PARTIALLY REIMBURSED BY THE UNITED STATES UNDER A FORMULA ESTABLISHED BY FEDERAL LAW. HOWEVER, YOUR POLICY MAY CONTAIN OTHER EXCLUSIONS WHICH MIGHT AFFECT YOUR COVERAGE, SUCH AS AN EXCLUSION FOR NUCLEAR EVENTS. UNDER THIS FORMULA, THE UNITED STATES PAYS 80% OF COVERED TERRORISM LOSSES EXCEEDING THE STATUTORILY ESTABLISHED DEDUCTIBLE PAID BY THE INSURER(S) PROVIDING THE COVERAGE. YOU SHOULD ALSO KNOW THAT THE TERRORISM RISK INSURANCE ACT, AS AMENDED, CONTAINS A USD100 BILLION CAP THAT LIMITS U.S. GOVERNMENT REIMBURSEMENT AS WELL AS INSURERS' LIABILITY FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM WHEN THE AMOUNT OF SUCH LOSSES IN ANY ONE CALENDAR YEAR EXCEEDS USD100 BILLION. IF THE AGGREGATE INSURED LOSSES FOR ALL INSURERS EXCEED USD100 BILLION, YOUR COVERAGE MAY BE REDUCED. THE PREMIUM CHARGED FOR THIS COVERAGE IS PROVIDED BELOW AND DOES NOT INCLUDE ANY CHARGES FOR THE PORTION OF LOSS COVERED BY THE FEDERAL GOVERNMENT UNDER THE ACT. ❑ 1 1 hereby elect to purchase terrorism coverage for a prospective premium of USD $1,471 (This premium does not include any charges for the portion of loss covered by The Federal government under the Act) ❑ I hereby elect to have coverage for acts of terrorism excluded from my policy. I understand that I will have no coverage for losses arising from acts of terrorism. Policyholder/Applicant's Signature Print Name Date LMA9184 09 January 2020 Company Signature Policy Number Page 167 of 250 Agenda Item #16. QHIGHLAND INSURANCE SOLUTIONS SCHEDULE OF INSURERS 1 The Insurers and their participation in this Policy are as follows: Insurer Tokio Marine Kiln Syndicate 510 Tokio Marine Kiln Syndicate 1880 Safety Specialty Insurance Company Ascot Specialty Insurance Company Participation 15.74% 3.93 47.00% 33.33 The Unique Market Reference (UMR) number for the above listed Tokio Marine Kiln Syndicates shall be: B0429BA2103195 HTKP002 Page 168 of 250 Agenda Item #16. 454- HIGHLAND INSURANCE SOLUTIONS BUILDERS RISK COVERAGE FORM Words or phrases that appear in capitalized boldface type followed by an Asterisk have special meaning that will be applied in the interpretation of such words or phrases in accordance with Part C — Definitions. In addition, throughout this policy, the words "you" and "your' refer to the Named Insured shown in Item 1 of the Policy Declarations, the term "policy period" refers to the Policy Period shown in Item 5 of the Policy Declarations, and the word "Company' refers to the Issuing Company identified in the Policy Declarations. Various Provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. PART A — COVERAGE TERMS AND CONDITIONS 1. INSURING AGREEMENT: This policy, subject to the terms, exclusions, limitations and conditions contained herein or endorsed hereto, insures against LOSS* to PROPERTY INSURED* while at the location of the INSURED PROJECT* while in offsite temporary storage, offsite fabrication or while in transit, all within the coverage territory and occurring during the policy period, unless the cause of such LOSS* is Excluded and/or Limited by this policy form. The most the Company will pay in any one OCCURRENCE* is its proportion of the Policy Limit described in Paragraph 9 (POLICY LIMIT) of the Builder's Risk Policy Declarations ("Declarations'), subject to the participation, sub -limits and aggregate limits set forth in Paragraph 10 (PARTICIPATION) of the Declarations, and further subject to the deductible provisions set forth in Paragraph 11 (DEDUCTIBLES) of the Declarations. 2. EXTENSIONS OF COVERAGE: (Coverage is excluded when shown as Not Covered on the Declarations) A. ARCHITECTS AND ENGINEERS FEES: In the event of LOSS* insured hereunder and occurring during the policy period, this policy is extended to cover necessary and reasonable compensation for architect's or engineer's services and expenses incurred by the Insured in connection with the repair or replacement of the INSURED PROJECT*, butexcluding any architectural, engineering, drafting or other cost, expense or fees including change orders and shop drawings relating to improvements or betterments to the INSURED PROJECT*. B. CLAIMS PREPARATION COSTS: This policy is extended to cover the reasonable and necessary additional expenses incurred by the Insured which are directly related to the preparation, substantiation and / or documentation of any claim for LOSS* insured hereunder and occurring during the policy period to PROPERTY INSURED*as a result of a covered cause of LOSS* under this policy. Any costs incurred for the services or efforts of an attorney, lawyer or a Public Adjuster are expressly excluded. The Company shall have no liability for any additional expense hereunder unless and until a claim for LOSS* to PROPERTY INSURED*as a result of covered cause of LOSS* underthis policy has been submitted to and accepted by the Company. Any costs incurred hereunder shall be subject to the deductible applicable to the cause of LOSS* that necessitates such costs. In the event that the amount of LOSS* to PROPERTY INSURED* as a result of a covered cause of LOSS* under this policy is less than the applicable deductible stated elsewhere in thispolicy, the Company shall not accept a claim for nor be liable for additional expenses as covered herein. C. COLD TESTING: Limit — Up to Policy Limit Any functional testing exclusive of HOT TESTING as defined above including but not limited to electrical, mechanical, hydraulic and hydrostatic. Startup and testing of building systems including heating, lighting, air conditioning, plumbing, electrical work, ventilation, sprinkler systems, plumbing, gas line, elevators and escalators shall be considered COLD TESTING. HTKC001 PAGE 1 OF 20 Page 169 of 250 Agenda Item #16. D. CONSTRUCTION TRAILERS: Limit—$25,000 The company will pay for LOSS* to CONSTRUCTION TRAILERS and office trailer contents, other than "construction documentation, records, tools and equipment", while at the INSURED PROJECT* site or a temporary offsite location caused by a covered LOSS*. CONSTRUCTION/OFFICE TRAILERS means modular or portable office trailers, construction trailers, storage trailers or portable restrooms. E. CRANE RE -ERECTION EXPENSE: Limit — $25,000 If a Crane which is equipped with a winch for hoisting and lower loads is not covered under this policy is damaged as a result of a covered LOSS* while at the INSURED PROJECT* site, the company will pay the reasonable and necessary costs incurred by the Named Insured to re -erect a crane if necessary to complete the INSURED PROJECT*. This extension of coverage does not apply to and shall not modify, amended or alter any other coverage extension or delay in opening coverage insured by the policy and such coverage extension and delay in opening coverage is expressly excluded. 1W �. F. DEBRIS REMOVAL: In the event of a covered LOSS* and occurring during the policy period, the Company will pay the following necessary and reasonable costs: (1) costs to remove debris being an insured part of the property from INSURED PROJECT*;and/or (2) cost of cleanup, at the INSURED PROJECT*, made necessary as a result of such LOSS*. Debris Removal does not apply to costs to: A. Remove debris of property of yours that is not insured under this policy, or property in your possession that is not PROPERTY INSURED*; B. Remove debris of property owned by or leased to or for the owner of the INSURED PROJECT* where the described premises are located, unless you have a contractual responsibility to insure such property and it is insured under this policy; C. Remove any property that is Property Not Covered; D. Remove property of others of a type that would not be PROPERTY INSURED* under this Coverage Form; E. Extract CONTAMINANTS OR POLLUTANTS* from land or water; or F. Remove, restore or replace polluted land or water. It is a condition precedent to recovery under this extension that the Company shall have paid or agreed to pay for LOSS* to the PROPERTY INSURED* hereunder and that the Insured shall give written notice to the Company of intent to claim for cost of covered removal of debris or cost to clean up not later than 180 days after the date of such LOSS*. G. ERRORS AND OMMISSIONS: Limit — $25,000 No unintentional errors or omission in any information required to be reported to the Company or otherwise relative to this Insured will prejudice the Insured's right of recovery, but will be reported to the Company as soon as practicable when discovered. H. ESCALATION CLAUSE: In the event the TOTAL CONTRACT VALUE* reported for the INSURED PROJECT* increases during the policy period, the total project hard cost limit will automatically increase to reflect the change concurrently subject to a maximum of 5% of the original limit shown unless otherwise endorsed. This extension of coverage does not apply to and shall not modify, amended or alter any other coverage extension or delay in opening coverage insured by the policy and such coverage extension and delay in opening coverage is expressly excluded. HTKC001 PAGE 2 OF 20 Page 170 of 250 Agenda Item #16. I. EXPEDITING EXPENSE: In the event of a covered LOSS* occurring during the policy period, the Company will pay, for the reasonable and necessary costs incurred to make temporary repairs and to expeditethe permanent repair or replacement of the PROPERTY INSURED* which is damaged by a peril not otherwise excluded, including additional wages for overtime, night work, and work on public holidays and the extra costsof express freight or other rapid means of transportation. J. EXTRA EXPENSE: In the event of a covered LOSS* occurring during the policy period, the Company will pay the EXTRA EXPENSE incurred as a result of LOSS* to the INSURED PROJECT* hereunder. EXTRA EXPENSE shall be defined as the reasonable and necessary excess costs incurred during the period of restoration and repair that are over and above the total costs that would normally have been incurred during the same period of time had no LOSS* occurred. EXTRA EXPENSE shall include, but not be limited to, equipment rental, emergency expenses, temporary use of property, demobilization and remobilization of equipment and facilities, and expenses necessarily incurred to reduce loss excluding, however, any Additional Interest Expense, Debt Service, Business Interruption, Loss of Income, Loss or Earnings, Loss of Rents or Delay In Completion and/or Acceleration Expense. Any costs incurred hereunder shall be subject to the deductible applicable to the cause of LOSS* that necessitates such costs. In the event that the amount of LOSS* to PROPERTY INSURED*as a result of a covered LOSS* is less than the applicable deductible stated elsewhere in thispolicy, the Company shall not accept a claim for nor be liable for excess costs as covered herein. K. FIRE BRIGADE CHARGES AND EXTINGUISHING EXPENSES: In the event of a covered LOSS* occurring during the policy period, the Company will pay the following reasonable and necessary expenses: (1) Fire brigade charges and other extinguishing expenses for which the Named Insured may be assessed; (2) loss of fire extinguishing materials expended in fighting fire, including the loss of similar material which may be brought on the project location for the purpose of extinguishing a fire already in progress at the time such materials are ordered and delivered, but liability shall not exceed the combined value of such extinguishing materials which are on the premises, or on adjacent premises, if such materials are jointly owned at the time of loss. L. HOT TESTING: Which means any startup, commissioning or other forms of testing making use of any feedstock or similar media including operational or performance tests. When a specific premium and rate or acknowledgement of coverage are entered for HOT TESTING in Paragraph 12 of the Declarations and a TESTING PERIOD has been identified in Paragraph 5 of the Declarations, this policy is extended to cover LOSS* to the PROPERTY INSURED* which is caused by or results from HOT TESTING. The Insured warrants that supervisory and safety systems shall not be deliberately or knowingly circumvented during the conduct of TESTING. This warranty shall not apply when it is standard accepted industry practice and/or manufacturer's specification that such circumvention is necessary for the conduct of individual activities within the conduct of TESTING provided that such circumvention does not extend beyond said individual activities. It is further warranted that all instrumentation will be installed and activated prior to the conduct of any TESTING. TESTING PERIOD: As respects HOT TESTING, the TESTING PERIOD shall mean and be limited to that period beginning with the introduction into the PROPERTY INSURED* of feedstock or similar media for processing and handling or the commencement of supply to a system and continuously thereafter whether or not such testing, commissioning or startup is continuous or intermittent and terminating on the expiry of the period of time as provided in Paragraph 5 of the Declarations Hot Testing is only covered if indicated on the Declaration page. HTKC001 PAGE 3 OF 20 Page 171 of 250 Agenda Item #16. M. MOLD REMEDIATION EXPENSE: Notwithstanding the exclusion in the policy for LOSS* due to mold, fungus, mildew and spores in the event of a covered LOSS* occurring during the policy period, this policy is extended to cover mold remediation expenses incurred by the Insured, resulting from or caused by a covered LOSS*, which results in LOSS* to PROPERTY INSURED*, made necessary by insured physical damage to an INSURED PROJECT* or PROPERTY INSURED* as provided under the policy. This extension of coverage only applies to the portion of an INSURED PROJECT* or PROPERTY INSURED* which directly sustained the covered LOSS*. Mold remediation expense means the following reasonable and necessary costs not otherwise excluded under the policy: (1) Testing the indoor air quality for mold; (2) Testing the surfaces and materials of the INSURED PROJECT*, PROPERTY INSURED* or contents for mold; (3) Developing a mold remediation plan; and (4) Implementing a mold remediation plan including the clean up, removal,containment, treatment or disposal of mold; Mold remediation shall also mean the following reasonable and necessary costs, including increased cost, not otherwise excluded: (1) Removing debris solely due to mold; and (2) Repairing and replacing the INSURED PROJECT* or PROPERTY INSURED* damaged. Mold remediation expense does not apply beyond the provisions as provide herein including any other consequential loss or damage as a result of mold. Any costs incurred hereunder shall be subject to the deductible applicable to the cause of loss that necessitates such costs. N. OCCUPANCY or COMMERCIAL SERVICE: This policy is extended to permit occupancy/commercial service insured hereunder being a part of an INSURED PROJECT* but prior to final acceptance by the Owner and coverage shall not be reduced due to such partial occupancy/operation except as provided herein, provided that the Insured warrants that all FIRE PROTECTION SYSTEMS* and security systems within the occupied/operational space shall be in service and fully operational prior to and during any such occupancy/operation. It is a condition hereof that the Insured, upon such knowledge, shall report any increase in hazard beyond that provided for in the policy. OCCUPANCY or COMMERCIAL SERVICE shall be deemed to have occurred when the INSURED PROJECT* or any portion thereof has been put to its intended use but only as respects such portion or portions put to use. The orientation or training of building management staff, the training of plant engineering and maintenance personnel, the establishment of a sales or rental office and completion of tenant fit out work shall not be considered OCCUPANCY or COMMERCIAL SERVICE on their own. O. OFFSITE TEMPORARY STORAGE AND/OR OFFSITE FABRICATION: This policy is extended to cover LOSS* occurring during the policy period to property to be used in or incidental to completion of an INSURED PROJECT*, while in temporary storage anywhere within the coverage territory but excluding such property while in the course of manufacturing or processing at the manufacturer's or supplier's site or while in transit, except as provided in Clause 3 a. Transit. HTKC001 PAGE 4 OF 20 Page 172 of 250 Agenda Item #16. P. ORDINANCE OR LAW/ DEMOLITION AND INCREASED COST OF CONSTRUCTION: If the repair of LOSS* to PROPERTY INSURED*caused by an insured peril becomes subject to the enforcement of any ordinance or law that is in force at the time of LOSS* and that: (1) Requires the demolition of parts of the undamaged PROPERTY INSURED*; or (2) Regulates the construction or repair of damaged PROPERTY INSURED*; then the Company will pay for: A. The cost of demolishing the undamaged PROPERTY INSURED* and clearing the site of debris from such demolition; and B. The value of such undamaged part of the PROPERTY INSURED* which must be demolished; and C. The increased cost of repair and/or reconstruction of the damaged and undamaged PROPERTY INSURED* on the same site and limited to the minimum requirements of such ordinance or law regulating the repair or reconstruction of the damaged PROPERTY INSURED* on the same site. However, the Company will not pay for any increased cost of repair or reconstruction unless the damaged PROPERTY INSURED* is actually rebuilt or replaced. The Company will not pay the following costs: (1) Cost of demolition or increased cost of repair or reconstruction, debris removal, or other consequential loss caused by the enforcement of any ordinance or law regulating asbestos or other hazardous material; (2) Cost of any governmental direction or request declaring that asbestos or other hazardous material present in, part of or utilized on any damaged or undamaged portion of PROPERTY INSURED* that can no longer be used for the purpose for which it was intended or installed and must be removed, modified or abated; (3) Cost of demolition or increased cost of repair or reconstruction, debris removal, or other consequential loss caused by the enforcement of any ordinance or law regulating CONTAMINANTS OR POLLUTANTS*; or (4) Cost of compliance with the enforcement of any ordinance or law which the Named Insured or owner would have otherwise been required to comply by nature of such ordinance or law in the absence of any covered LOSS*. Q. PLANS, BLUEPRINTS, DRAWINGS, ELECTRONIC DATA*, RENDERINGS, SPECIFICATIONS OR OTHER CONTRACT DOCUMENTS & MODELS: This policy is extended to cover LOSS* occurring during the policy period to plans, blueprints, drawings, electronic data, renderings, specifications or other contract documents (whether paper or electronic media format) and models while at the location of the INSURED PROJECT*. R. POLLUTION & CONTAMINATION CLEAN UP & DECONTAMINATION: In the event of LOSS* occurring during the policy period, the Company will pay the cost of cleanup or decontamination as a result of sudden and unforeseen LOSS* caused by CONTAMINANTS OR POLLUTANTS* on an INSURED PROJECT* site at time of OCCURRENCE* but restricted to the INSURED PROJECT* site; demolition, or removal of any PROPERTY INSURED* to the extent to comply with the minimum standards of any regulation, ordinance or law which requires the demolition, repair, or construction of buildings or structures subsequent to and necessitated by a covered LOSS* provided that such regulation, ordinance or law is in force at the time of LOSS*. No additional costs of reconstruction or additional costs of repair by reason of any regulation, ordinance, or law are included hereunder. The foregoing shall not invalidate any other provisions of the policy or endorsements attached to the policy. Any costs incurred hereunder shall be subject to the deductible applicable to the cause of LOSS* that necessitates such costs. S. PRESERVATION OF PROPERTY: Limit — $25,000 If it is necessary to remove or protect PROPERTY INSURED* from the INSURED PROJECT* site or off -site storage to protect it from a covered LOSS*, the company will pay the costs incurred by the Named Insured to protect or remove the PROPERTY INSURED* including moving and storage. HTKC001 PAGE 5 OF 20 Page 173 of 250 Agenda Item #16. T. REWARD: Limit — $25,000 At the Company's option, the Named Insured may be reimbursed for rewards paid, other than to the Named Insured, or any of the Named Insured's partners, members, managers or officers, for information leading to the conviction of any one or more persons responsible for LOSS* covered under this Policy. The Company will be the sole judge as to the payment and amount of the reimbursement. U. SEWER BACKUP: Limit —1% of the total project value up to $500,000 AhE Water or waterborne material that backs up, overflows or is otherwise discharged through a sewer or drain, sump or septic tank; or water or waterborne material below the surface of the ground, including but not limited to water or waterborne material that exerts pressure on or flows, seeps, or leaks through or into any BASEMENT or below ground portion of the INSURED PROJECT*. The term BASEMENT shall be defined as any area of a structure having its bottom surface, whether floored or not, below ground level on any side of such structure. V. TRANSIT: This policy is extended to include transit coverage for LOSS* occurring during the policy period to property to be used in or incidental to completion of the INSURED PROJECT* from the commencement of loading at the original point of shipment anywhere within the cove ragete rrito ry, until completion of unloading at a location of the INSURED PROJECT*, including shipments on inland or coastal waters but excluding ocean marine shipments. The Insured agrees to keep records of all shipments covered hereunder and make them available to the Company upon request. This coverage shall be void if the Insured enters into any special agreement with carriers, releasing them from their common law or statutory liability or agreeing that this insurance shall in any way inure to the benefit of such carriers; however, the Insured may, without prejudice to this coverage, accept such bills of lading, receipts, or contracts of transportation as are ordinarily issued by carriers containing a limitation as to the value of property insured. W. TREES, SHRUBS, PLANTINGS AND LANDSCAPING: This policy is extended to cover LOSS* occurring during the policy period to trees, plantings, shrubs and landscaping materials which are part of and while located at the INSURED PROJECT*. 617 HTKC001 PAGE 6 OF 20 Page 174 of 250 Agenda Item #16. PART B - EXCLUSIONS AND LIMITATIONS 1. EXCLUSIONS: This policy shall not pay for LOSS*, costs, expenses or fees caused directly or indirectly and/or contributed to, in whole or in part, by any of the following excluded perils except as specifically allowed in a, b, c, d, f or j below: a. Consequential loss, damage or expense of any kind or description including but not limited to loss of market or delay, liquidated damages, performance penalties, penalties for non -completion, delay in completion, or non- compliance with contract conditions, whether caused by a peril insured or otherwise, however the foregoing shall not exclude Delay In Completion Coverage when it is endorsed to this policy; b. Cost of making good faulty or defective workmanship or material, unless LOSS* by a peril not otherwise excluded ensues and then this policy will cover for such ensuing physical loss or damage only; c. Cost of making good faulty, defects, errors, deficiencies or omissions in design, plans or specifications, unless LOSS* by an insured peril ensues and then this policy will cover for such ensuing loss or damage only; d. Wear and tear, gradual deterioration, marring or scratching, inherent vice, latent defect, corrosion, rust, dampness or dryness of the atmosphere, unless LOSS* by an insured peril ensues and then this policy will cover for such ensuing loss or damage only; e. (1) War, hostile or warlike action in time of peace or war, whether or not declared, including action in hindering, combating or defending against an actual, impending or expected attack: A. by government or sovereign power (de jure or de facto) or by any authority maintaining or using military, naval or air forces; or B. by military, naval or air forces; or C. by an agent of any such government, power, authority or force; (2) Any weapon of war employing atomic fission or radioactive force whether in time of peace or war, whether or not its discharge was accidental; (3) Insurrection, rebellion, revolution, civil war, usurped power, or action taken by government authority in hindering, combating, or defending against such an occurrence, seizure or destruction; (4) Any act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the LOSS*. For the purpose of this exclusion an act of terrorism means an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organization(s) or government(s), committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public, in fear; This policy also excludes LOSS*, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing or in any way relating to any act of terrorism; If the Company alleges that by reason of this exclusion, any LOSS*, cost or expense is not covered by this insurance the burden of proving the contrary shall be upon the Insured; (5) Hijacking or any unlawful seizure or wrongful exercise or control of any mode of transportation, including but not limited to aircraft, watercraft, truck(s), train(s) or automobile(s), including any attempted seizure of control, made by any person or persons; f. Nuclear reaction, nuclear radiation or radioactive contamination however such may have been caused; nevertheless, if a fire arises directly or indirectly any of the foregoing, any loss or damage arising directly from that fire shall (subject to the provisions of this policy) be covered, excluding however all loss or damage caused by nuclear reaction, nuclear radiation or radioactive contamination arising directly or indirectly from that fire; HTKC001 PAGE 7 OF 20 Page 175 of 250 Agenda Item #16. g. Mysterious disappearance or when revealed by inventory shortage; h. Dishonest or criminal act (including theft) by you, any of your partners, members, officers, managers, employees (including temporary employees and leased workers), directors, trustees or authorized representatives, whether acting alone or in collusion with each other or with any other party; or theft by any person to whom you entrust the property for any purpose, whether active along or in collusion with any other part. This exclusion: (1) Applies whether or not an act occurs during your normal hours of operation; (2) Does not apply to acts of destruction by your employees (including temporary employees and leased workers) or authorized representatives; i. LOSS*, costs, expenses, fines or penalties incurred or sustained by or imposed on the Insured at the order of any government agency, court or other authority arising from any cause whatsoever beyond the demolition of any damaged portion of the INSURED PROJECT* no longer useful for its intended purpose; j. Actual, alleged or threatened release, discharge, escape or dispersal of CONTAMINANTS OR POLLUTANTS*, all whether direct or indirect, proximate or remote or in whole or in part caused by, contributed to or aggravated by any LOSS* covered by this policy; Nevertheless, if fire is not excluded from this policy and a fire arises directly or indirectly from actual release, discharge, escape or dispersal of CONTAMINANTS OR POLLUTANTS*, any LOSS* covered under this policy arising directly from that fire is insured, subject to the provisions of this policy; This exclusion shall not apply when LOSS* is directly caused by fire, lightning, aircraft impact,explosion, riot, civil commotion, smoke, vehicle impact, windstorm, hail, vandalism or malicious mischief, leakage or accidental discharge from automatic FIRE PROTECTION SYSTEMS*; k. This policy does not cover: (1) Asbestos material removal; (2) Demolition or increased cost of reconstruction, repair, debris removal or loss of use necessitated by the enforcement of any law or ordinance regulating asbestos material; (3) Any governmental order or direction declaring that asbestos material which is present in or part of or utilized on any portion of the INSURED PROJECT* must be removed or modified; Loss or damage covered under any written or implied guarantee or warranty by any manufacturer or supplier, but only to the extent of recovery from such written or implied guarantee or warranty; m. Subsidence, sinkhole, settling, cracking, expansion, contraction or shrinkage of walls, floors, ceilings, buildings, foundations, patios, roofs, walkways, driveways or pavements; n. Cessation of the work, whether total or partial, unless such cessation has been directly occasioned by LOSS* covered under the policy. Cessation of the work, as used herein, shall not mean: any period of time during which operations would not normally have been conducted such as Saturdays, Sundays or Holidays, nor shall it mean seasonal inactivity planned in advance or labor actions beyond the Insured's control, provided the location of the INSURED PROJECT* is maintained and protected against LOSS* during such inactivity; o. Freeze, drought and hail, weight of ice or snow, but only as respects EXTENSION OF COVERAGE -Trees, Plants, Shrubs and Landscaping; p. Nesting or infestation, disease, or any damage caused by insects, vermin, rodents or animals; q. Erosion of graded or planted finish or rough grades which results from normally expected or predictable precipitation and surface water runoff; r. As respects Clause A.3.11 — PLANS, BLUEPRINTS, DRAWINGS, RENDERINGS, SPECIFICATIONS OR OTHER CONTRACT DOCUMENTS AND MODELS - electrical or magnetic injury to or errors and omissions in creating, processing or copying electronic records, however caused; HTKC001 PAGE 8 OF 20 Page 176 of 250 Agenda Item #16. s. Mold, mildew, fungus, spores or other micro-organism of any type, nature, or description, including but not limited to any substance whose presence poses an actual or potential threat to human health. This exclusion applies regardless whether there is (i) any LOSS* to PROPERTY INSURED*; (ii) any insured peril or cause, whether or not contributing concurrently or in any sequence; (iii) any loss of use, occupancy, or functionality; or (iv) any action required, including but not limited to repair, replacement, removal, cleanup, abatement, disposal, relocation, or steps taken to address medical or legal concerns; t. LOSS* to any program, software or operating system, programming instruction or data arising out of or resulting from any failure, malfunction, deficiency, deletion, fault, VIRUS* or corruption, including but not limited to, LOSS* resulting from any authorized or unauthorized access in, of or to any computer, communication system, file server, networking equipment, computer system, computer hardware, data processing equipment, computer memory, microchip, microprocessor (computer chip), integrated circuit or similar device in computer equipment, any program, computer software or operating systems, programming instructions or data; To the extent coverage for equipment, hardware, media or device is provided in the policy, the following exclusion does not apply: (1) if any of the matters described above results solely from direct physical loss of or direct physical damage to the equipment, hardware, media or device on which the program, software or operating system, programming instructions, or data are transported, processed or contained; (2) to LOSS* to tangible PROPERTY INSURED* that results from any of the matters described above but limited to the perils of Fire and Explosion only; For the purposes of this exclusion, program, software or operating system, programming instruction and data are not tangible property insured. u. The actual or threatened malicious use of pathogenic or poisonous biological or chemical materials regardless of any other cause or event contributing concurrently or in any other sequence thereto. v. LOSS* to property stored in the open arising from, contributed to, or resulting from rain, snow, sleet or ice, all whether wind driven or not. This exclusion does not apply to property while located within the building or structure. w. Voluntary parting with any property by you or anyone else to whom you have entrusted the property if induced to do so by any fraudulent scheme, trick, device or false pretense. x. LOSS*, claim, cost, expense or other sum, directly or indirectly arising out of, attributable to, or occurring concurrently or in any sequence with a Communicable Disease or the fear or threat (whether actual or perceived) of a Communicable Disease. For the purposes of this exclusion, LOSS*, claim, cost, expense or other sum, includes, but is not limited to, any cost to clean-up, detoxify, remove, monitor or test for: (1) a Communicable Disease, or (2) any property insured hereunder that is affected by such Communicable Disease. As used herein, a Communicable Disease means any disease which can be transmitted by means of any substance or agent from any organism to another organism where: (1) the substance or agent includes, but is not limited to, a virus, bacterium, parasite or other organism or any variation thereof, whether deemed living or not, and (2) the method of transmission, whether direct or indirect, includes but is not limited to, airborne transmission, bodily fluid transmission, transmission from or to any surface or object, solid, liquid or gas or between organisms, and (3) the disease, substance or agent can cause or threaten damage to human health or human welfare or can cause or threaten damage to, deterioration of, loss of value of, marketability of or loss of use of property insured hereunder. HTKC001 PAGE 9 OF 20 Page 177 of 250 Agenda Item #16. 2. PROPERTY EXCLUDED: This policy excludes: a. Land and land values and the value of cut fill and backfill materials existing at the project site prior to project commencement; however, to the extent included in the contract bid documents and declared for premium purposes, the value of fill and backfill materials purchased for use in the completion of the project is not excluded. Notwithstanding the foregoing, labor and material charges incurred to move, remove, place or otherwise handle cut, fill and backfill materials, whether insured or uninsured in the foregoing, are covered to the extent such charges are included in the contract bid documents and declared for premium purposes; b. Contractor's tools, machinery, plant and equipment, including spare parts and accessories, whether owned, loaned, hired or leased, and property of a similar nature not destined to become a permanent part of the completed INSURED PROJECT* unless the value of the same is reported and additional premium is paid at rates and terms to be agreed: c. Vehicles or equipment licensed for highway use, rolling stock, aircraft or watercraft; d. Water, animals, standing timber and growing crops. This exclusion does apply to loss of water contained in any process equipment, tank or pipe; e. Accounts, bills, currency, food stamps or other evidences of debt, money, bonds, notes or securities, precious alloys or metals, or precious and semi-precious stones or other property of similar nature; f. Existing property at the location of the INSURED PROJECT* unless separately declared to the Company in advance and specifically endorsed to the Builders Risk policy; g. Property located at other than the location of INSURED PROJECT* except as covered under the Transit or Offsite Temporary Storage/Offsite Fabrication Extensions of Coverage; h. Prototype, developmental or used machinery and equipment but only as to damage while undergoing any form of testing, commissioning or startup unless specifically endorsed to the policy; i. Transmission and distribution lines outside of the INSURED PROJECT*; j. LOSS* to PROPERTY INSURED* while covered by Ocean Marine Insurance or while waterborne in the course of ocean shipment; k. Any property while located at any site which stores processes or otherwise handles or makes use of radioactive materials unless reported to and accepted by the Company. The foregoing shall not apply to locations or property making use of radioactive isotopes contained within equipment used for diagnostic or testing purposes; I. Contraband or property in the course of illegal transportation or trade; m. Underground caverns, mines or mine shafts or any property contained therein. HTKC001 PAGE 10 OF 20 Page 178 of 250 Agenda Item #16. PART C - DEFINITIONS Wherever in this policy words or phrases appear in capitalized bold face type followed by an Asterisk, the following definitions will be applied in the interpretation of such words or phrases: 1. CONTAMINANTS OR POLLUTANTS: r Contaminants and Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste, which after its release can cause or threaten damage to human health or human welfare or causes or threatens damage, deterioration, loss of value, marketability or loss of use to property insured hereunder, including, but not limited to, bacteria, fungi, virus, or hazardous substances as listed in the Federal Water, Pollution Control Act , Clean Air Act, Resource Conservation and Recovery Act of 1976, and Toxic Substances Control Act or as designated by the U. S. Environmental Protection Agency. Waste includes materials to be recycled, reconditioned or reclaimed. 2. EARTH MOVEMENT: Shall mean all earthquake, landslide, mudslide, mudflow, rock fall, tsunami, volcanic action, volcanic eruption, sinkhole collapse, subsidence or rock fall or other Earth Movement whether man-made or caused by natural phenomena. If Earth Movement is excluded, this policy will cover the resulting damage if caused by the covered peril of sprinkler leakage. 3. ELECTRONIC DATA: Electronic data means information, facts or computer programs stored as or on, created or used on, or transmitted to or from computer software (including systems and applications software), on hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other repositories of computer software which are used with electronically controlled equipment. The term computer programs, referred to in the foregoing description of electronic data, means a set of related electronic instructions which direct the operations and functions of a computer or device connected to it, which enable the computer or device to receive, process, store retrieve or send data. 4. FIRE PROTECTION SYSTEMS: Tanks, water mains, hydrants, or valves, and any other equipment whether used solely for fire protection or jointly for fire protection and for other purposes but excluding: (1) branch piping from a joint system where such branches are used entirely for purposes other than fire protection. (2) any underground water mains or appurtenances located outside of the described premises and forming part of the public water distributing system. (3) any pond or reservoir in which the water is impounded by a dam. 5. FLOOD: (1) A general and temporary condition of complete inundation of normally dry land areas, including dewatered areas, from: (a) The overflow of inland or tidal waters; (b) The unusual and rapid accumulation or runoff of SURFACE WATER*; (c) Mudslides (i.e. mudflows) which are caused by flooding as defined in subparagraph (b) above and are akin to a river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water and deposited along the path of the current; (2) The collapse or subsidence of land along the shore of a lake or other body of water as a result of erosion or undermining caused by waves or currents of water exceeding the cyclical levels which result in flooding as defined in a (1) above. All whether driven by wind or not. (3) FLOOD* or storm surge as a result of a NAMED WINDSTORM* is excluded from this coverage. The term FLOOD* shall not include Sewer Back up. HTKC001 PAGE 11 OF 20 Page 179 of 250 Agenda Item #16. 6. FUNGUS: Fungus includes, but is not limited to, any of the plants or organisms belonging to the major group fungi, lacking chlorophyll, and including mold(s), rusts, mildews, smuts and mushrooms. 7. INSURED PROJECT: The work which the Insured is contractually obligated to perform in accordance with the contract documents being more fully described and located as set forth in the Declarations. 8. LOSS: Means accidental, direct physical loss or damage to the PROPERTY INSURED*. LOSS* does not mean any indirect or ensuing loss that is not a direct result of actual physical damage to the PROPERTY INSURED*, including but not limited to the presence of disease particles of any size, restrictions to access the work site whether imposed by any governmental entity or any other restrictions from any source that would affect the ability to access the site or continue work at the site. 9. MOLD: Mold(s) includes, but is not limited to, any superficial growth produced on damp or decaying organic mat ter or on living organisms, and fungi that produce mold(s). 10. NAMED WINDSTORM: Jr A storm that has been declared and or identified by the National Oceanic and Atmospheric Administration's (NOAA) National Hurricane Center, National Weather Service or similar governing body to be a Hurricane, Typhoon, Tropical Cyclone, Tropical Storm, or a Tropical Depression and includes storm surge, being defined as an offshore rise of water associated with a low pressure weather system, typically a tropical cyclone. 11. OCCURRENCE: With the exception of the perils of EARTH MOVEMENT*, FLOOD*, NAMED WINDSTORM*, WINDSTORM*, riot, riot attending a strike, civil commotion, and vandalism and malicious mischief, OCCURRENCE* means an accident, incident, or a series of accidents or incidents arising immediately out of a single event or originating cause and includes all resultant or concomitant losses wherever located. In respect of the perils of EARTH MOVEMENT*, FLOOD*, NAMED WINDSTORM*, WINDSTORM*, riot, riot attending a strike, civil commotion, and vandalism and malicious mischief, OCCURRENCE* shall mean all LOSS* arising during a continuous period of one hundred sixty-eight (168) hours during the term of this policy insofar as the limit of liability, sublimit of liability, aggregate limit of liability and the deductible provisions of the policy are concerned. The Insured may elect the moment when the one hundred sixty-eight (168) hour period begins, but no two such periods shall overlap. Such EARTH MOVEMENT*, FLOOD*, NAMED WINDSTORM*, WINDSTORM*, riot, riot attending a strike, civil commotion, and vandalism and malicious mischief shall be deemed to be a single OCCURRENCE* within the meaning of this policy. The Company shall not be liable for any such LOSS* occurring before the effective date and time or occurring after the expiration date and time of this Policy; however, the Company will be liable for any LOSS* occurring for a period, of up to seventy-two (72) consecutive hours after the expiration of this policy provided that the occurrence takes place prior to the date and time of the expiration of this policy. 12. PROPERTY INSURED: (1) Permanent Works - All materials, supplies, equipment, machinery, and other property of a similar nature, being property of the Insured or of others for which the Insured may be contractually responsible, the value of which has been included in the estimated value of the INSURED PROJECT* in the Declarations, all when used or to be used in or incidental to the demolition of existing structures, site preparation, fabrication or assembly, installation or erection or the construction of or alteration, renovation, rehabilitation of the INSURED PROJECT*. (2) Temporary Works - All scaffolding, form work, fences, shoring, hoarding, false work and temporary buildings all incidental to the project and the value of which has been included in the estimated value of the INSURED PROJECT* in the Declarations. HTKC001 PAGE 12 OF 20 Page 180 of 250 Agenda Item #16. 13. SPORES: Any dormant or reproductive body produced by or arising or emanating out of any fungus, mold(s), mildew, plants, organisms or microorganisms. 14. SURFACE WATER: As used hereunder, shall mean seepage, leakage or influx of water (immediately derived from natural sources) through sidewalks, driveways, foundations, walls, basements or other floors, or through doors, windows or any other openings in such sidewalks, foundations, walls or floors. 15.TIER 1 & 2 COUNTIES AND PARISHES (in application of Named Windstorm): Tier 1 Counties: Alabama Baldwin and Mobile Connecticut Fairfield, Hartford, Litchfield, Middlesex, New Haven, New London and Tolland Delaware Sussex Florida All Counties Georgia Bryan, Camden, Chatham, Glynn, Liberty, and McIntosh Hawaii All Counties Louisiana Acadia, Ascension, Assumption, Calcasieu, Cameron, East Baton Rouge, Iberia, Iberville, Jefferson, Jefferson Davis, Lafayette, LaFourche, Livingston, Orleans, Plaquemines, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Martin, St. Mary, St. Tammany, Tangipahoa, Terrebonne, Vermilion, and Washington Maine Androscoggin, Aroostook, Cumberland, Hancock, Kennebec, Knox, Lincoln, Oxford, Penobscot, Sagadahoc, Somerset, Waldo, Washington, and York Maryland Worcester Massachusetts Barnstable, Bristol, Dukes, Essex, Nantucket, Norfolk, Plymouth, and Suffolk Mississippi Hancock, Harrison, and Jackson New Hampshire Belknap, Carroll, Hillsborough, Merrimack, Rockingham and Strafford New Jersey Atlantic, Cape May, Monmouth, and Ocean New York Kings, Nassau, Queens, Richmond, and Suffolk North Carolina Beaufort, Bertie, Brunswick, Camden, Carteret, Chowan, Currituck, Dare, Hyde, New Hanover, Onslow, Pamlico, Pasquotank, Pender, Perquimans, Tyrrell, and Washington Rhode Island Newport and Washington South Carolina Beaufort, Charleston, Colleton, Georgetown, Horry, and Jasper Texas Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Harris, Jefferson, Kennedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio, and Willacy Virginia Accomack, Alexandria, Arlington, Caroline, Charles City, Chesapeake, Chesterfield, Colonial Heights, Culpeper, Dinwiddie, Essex, Fairfax, Fairfax City, Falls Church, Fauquier, Franklin, Fredericksburg, Gloucester, Hampton, Hanover, Henrico, Hopewell, Isle of Wight, James City, King and Queen, King George, King William, Lancaster, Loudoun, Manassas City, Manassas Park City, Mathews, Middlesex, New Kent, Newport News, Norfolk, Northampton, Northumberland, Petersburg, Poquoson City, Portsmouth, Prince George, Prince William, Richmond, Richmond City, Southampton, Spotsylvania, Stafford, Suffolk, Surry, Sussex, Virginia Beach, Westmoreland, Williamsburg and York HTKC001 PAGE 13 OF 20 Page 181 of 250 Agenda Item #16. Tier 2 Counties: Alabama Clarke, Covington, Escambia, Geneva, Monroe, and Washington Delaware Kent District of Columbia All Georgia Brantley, Charlton, Effingham, Long, and Wayne Maryland Anne Arundel, Baltimore, Baltimore City, Calvert, Caroline, Carroll, Cecil, Charles, Dorchester, Harford, Howard, Kent, Montgomery, Prince Georges, Queen Annes, St Mary's, Somerset, Talbot, and Wicomico Massachusetts Middlesex Mississippi George, Pearl River, and Stone New Jersey Burlington, Cumberland, Essex, Hudson, Middlesex, and Union New York Bronx, New York, and Westchester North Carolina Bladen, Columbus, Craven, Duplin, Gates, Hudson, Middlesex, and Union Pennsylvania Bucks, Chester, Delaware, Lancaster, Montgomery, Philadelphia, and York Rhode Island Bristol, Kent, Newport, Providence, and Washington South Carolina Berkeley, Dillon, Dorchester, Florence, Hampton, Marion, and Williamsburg Texas Bee, Brooks, Fort Bend, Goliad, Hardin, Hidalgo, Jackson, Jim Wells, Liberty, Live Oak, Orange, Victoria, and Wharton 16. TOTAL CONTRACT VALUE or TOTAL COMPLETED VALUE: The total value of all property insured including, but not limited to, all wages, expenses, materials, supplies, equipment, change orders plus if declared, contractor's profit and overhead, existing structures (when coverage is included by endorsement) and such other charges, all whether provided by the owner, contractors or others, which will become a part of or will be expended in the project plus the value, if any, of SOFT COSTS*, RENTAL INCOME* or GROSS EARNINGS* to be insured under the Delay In Completion Endorsement when applicable. 17. VIRUS: Any software, data or code that affects the operation or functionality of any computer, communication system, file server, networking equipment, computer system, computer hardware, data processing equipment, computer memory, microchip, microprocessor (computer chip), integrated circuit or similar device in computer equipment, program, computer software or operating systems, programming instructions or data including, but not limited to, any destructive program, computer code, computer virus, worm, logic bomb, denial of service attack, smurf attack, vandalism, Trojan Horse or any other data introduced into any electronic system causing deletion, destruction, degradation, corruption, malfunction or compromise to data or electronic business systems. 18. WATER DAMAGE: Means LOSS* as covered by this policy which is a result of leakage of fluids, liquids and gases caused by an insured peril other than the peril of FLOOD*. 19. WINDSTORM: Shall mean any naturally occurring movement other than NAMED WINDSTORM* including but not limited to wind, windborne debris, tornados and hail. 20. WORK Shall mean the actual physical construction, installation, renovation/repair of a building, structure and or project has commenced and continues without delay. HTKC001 PAGE 14 OF 20 Page 182 of 250 Agenda Item #16. PART D — GENERAL CONDITIONS 1. ALTERNATIVE DISPUTE RESOLUTION: If the Company and the Named Insured disagree, after making a good faith effort to reach an agreement on an issue concerning this policy, either party may request that the following procedure be used to settle such disagreement: (1) The Company or the Named Insured may request of the other in writing that the dispute be settled according to an alternative dispute resolution procedure. (2) If the Company and the Named Insured agree to proceed, they will jointly select an alternative dispute resolution technique for resolution of the dispute. (3) If the parties cannot agree on a method to resolve the issue in dispute within sixty days of written request, the parties will contact either the Center for Public Resources or the American Arbitration Association and will use their services to select or devise a dispute resolution mechanism. (4) Alternative dispute resolution procedures that may be used include, but are not limited to, mediation, binding arbitration and mini -trials, except where prohibited by applicable law or regulation. (5) All expenses of the alternative dispute resolution procedure will be shared equally by both parties. (6) Any decision or award made as a result of the alternative dispute resolution procedure shall always be limited by the Coverage Terms and Conditions, Limits, Sublimits, Aggregate Limits of Liability, and deductibles of this policy. (7) Any statute of limitation that may be applicable to the dispute shall be tolled, with respect to such dispute, from the date that the Company and the Named Insured agree to follow the procedure set forth herein until and including the date that such procedure is concluded. If the Named Insured so requests, the Company hereby agrees to use the alternative dispute resolution procedure described above to resolve all issues concerning this policy except the following: (1) Any dispute involving asbestos including LOSS* or debris removal expense. (2) Any dispute involving debris removal expense for CONTAMINANTS OR POLLUTANTS*. (3) Any dispute where coverage is denied based on arson or other attempted fraud by the Named Insured. (4) Any dispute within the scope of and governed by the APPRAISAL clause, above. 2. APPRAISAL: If the Insured and the Company disagree on the value of the property or the amount of LOSS*, either may make written demand for an appraisal of the LOSS*. In this event, each party will select a competent and impartial appraiser within twenty one (21) days after receiving a written request from the other. The two appraisers will select an umpire. If they cannot agree upon an umpire within fifteen (15) days, either may request the selection by a judge of a court having jurisdiction. The appraisers will then appraise the LOSS*, stating separately the value of the property and the amount of LOSS* to each item. If they fail to agree, they will submit their differences to the umpire. A decision in writing, so itemized, of any two will be binding. Each party will pay its chosen appraiser and bear the other expense of the appraisal and umpire equally. If there is an appraisal, the Company will still retain the right to deny the claim. 3. ASSIGNMENT: Except in the event of an authorized assignment under the Bankruptcy Act or a change of title by succession, operation of law or death, the Named Insured agrees not to transfer any legal rights or interests in the policy without the Company's written consent. 4. OBSERVANCE OF CONDITIONS: The due observance and fulfillment of the terms and conditions of this policy by the Insured, insofar as they relate to anything to be done or complied with by them, shall be a condition precedent to any liability of the Company to make payment for LOSS* under this policy. HTKC001 PAGE 15 OF 20 Page 183 of 250 Agenda Item #16. 5. BANKRUPTCY OR INSOLVENCY: Bankruptcy or insolvency of the Insured shall not relieve the Company of any of its obligations under this policy. 6. BRANDS & TRADEMARKS: In case of LOSS* by an insured peril to PROPERTY INSURED* bearing a brand, trademark or label, the Company may take all or any part of the property at any agreed or appraised value. If so, the Insured may, at their own expense: (1) Stamp salvage on the property or its container, if the stamp will not physically damage the property; or (2) Remove the brand, trademark or label, if doing so will not physically damage the property. The Insured must re -label the property or its container to comply with the law. 7. CLAIM AGAINST TRANSIT CARRIER AND/OR BAILEE: No claim for LOSS* during transit shall be payable hereunder until the Insured has filed a claim with and made reasonable efforts to secure payment from the transporting carrier and the carrier has denied liability. 8. CONFLICT OF WORDING: The conditions contained in this coverage form shall supersede those of the printed conditions to which this form is attached, wherever the same may conflict. Where there is a conflict between the coverage form and the printed conditions of this policy, the conditions of the specific section shall prevail. 9. CONTRIBUTING INSURANCE: Permission is granted for other policies written upon the same terms, exclusions, limitations and conditions as those contained herein. This policy will contribute to the total of each LOSS* otherwise payable herein to the extent of the participation of this policy in the total limit of liability as provided by all policies written upon the same terms, exclusions, limitations and conditions as those contained in this policy. 10. COVERAGE TERRITORY: While located at the location of the insured project and while in transit within and / or offsite storage within the fifty (50) states comprising the United States of America, and within the District of Columbia including the territorial coastal waters of any of the foregoing. 11. DUPLICATE COVERAGE: No claim for LOSS* resulting from FLOOD* or NAMED WINDSTORM* will result in payment under both coverages. 12. EXCESS INSURANCE: Permission is granted for the Insured to have excess insurance over the limit of liability set forth in this policy without prejudice to this policy, nor will the existence of such insurance, if any, reduce any liability under this policy. Any other insurance that would have provided primary coverage in the absence of this Policy will not be considered excess. 13. IN THE EVENT OF LOSS*: (1) You must see that the following are done in the event of LOSS* to PROPERTY INSURED*: (i) Notify the police if a law may have been broken. (ii) Give us prompt notice of the LOSS*. Include a description of the property involved. (iii) As soon as possible, give us a description of how, when and where the LOSS* occurred. Take allreasonable steps to protect the Property Insured from further damage, and keep a record of your expenses necessary to protect the Property Insured, for consideration in the settlement of the claim. This will not increase the Limit of Insurance. However, we will not pay for any subsequent LOSS* resulting from a cause of loss that is not covered under this policy. Also, if feasible, set the damaged property aside and in the best possible order for examination. (iv) At our request, give us complete inventories of the damaged and undamaged property. Include quantities, costs, values and amount of loss claimed. (v) As often as may be reasonably required, permit us to inspect the property proving the LOSS* and examine your books and records. (vi) Also, permit us to take samples of damaged and undamaged property for inspection, testing and analysis, and permit us to make copies from your books and records. (vii) Send us a signed, sworn proof of loss containing the information we request to investigate the claim. HTKC001 PAGE 16 OF 20 Page 184 of 250 Agenda Item #16. You must do this within 60 days after our request. We will supply you with the necessary forms. (viii) Cooperate with us in the investigation or settlement of the claim. (a) We may examine any insured under oath, while not in the presence of any other insured and at such times as may be reasonably required, about any matter relating to this insurance or the claim, including an insured's books and records. In the event of an examination, an insured's answers must be signed. (b) After LOSS* to PROPERTY INSURED*, there can be no abandonment of the PROPERTY INSURED* without the consent of the Company. 14. INCREASED HAZARD: If the circumstances in which this insurance was entered into shall be altered or if the risk shall be materially increased, the Insured shall as soon as possible give notice in writing to the Company. 15. INSPECTION & AUDIT: While this policy is in effect, the Company can, at any reasonable time, inspect the PROPERTY INSURED* and operations. However, neither the Company's inspection nor any report thereof can serve as any representation that the PROPERTY INSURED* or operations are safe or healthful, or that they comply with any law, rule or regulation. With respect to an adjustment of a claim books and records will be kept by the Insured in such a manner that the total project cost of the work and the exact amount of any LOSS* covered by this policy can be accurately determined. The Company may examine and audit the Insured's books and records at any reasonable time during the policy period and within one year after the final termination of the policy, as long as they relate to the subject matter of this policy. 16. MISREPRESENTATION & FRAUD: This policy shall be void if the Insured has concealed or misrepresented any material fact or circumstances concerning this insurance or the subject thereof, or in case of any fraud, attempted fraud or false swearing by the Insured touching any matter relating to this insurance or the subject thereof, whether before or after a LOSS*. 17. MORTGAGE HOLDERS: (1) LOSS* to the PROPERTY INSURED* under this policy will be payable to the mortgagee (or trustee) as named in this policy or on an ACORD Certificate of Insurance issued to confirm coverage under this policy, as their interest may appear, under all present or future mortgages upon the property insured in which the aforesaid mayhave an interest as mortgagee (or trustee) in order of precedence of said mortgages and this insurance, as to the interest of the mortgagee (or trustee) only therein, will not be invalidated by any act or neglect of the mortgagor or owner of the property insured, or by any foreclosure or other proceedings or notice of sale relating to the property insured, nor by any change in the title or ownership of the property insured, nor by the occupation of the INSURED PROJECT* for purposes more hazardous than are permitted by this policy, provided, that if the mortgagor or owner neglects to pay any premium due under this policy, the mortgagee (or trustee) will, on demand, pay the same. (2) Provided also that the mortgagee (or trustee) will notify the Company of any change in ownership, occupancy or increase in hazard which becomes known to them and, unless permitted by this policy, it will be noted thereon and the mortgagee (or trustee) will, on demand, pay the premium for such increased hazard for the term of the use thereof, otherwise this policy will be null and void. (3) The Company reserves the right to cancel this policy at any time as provided by its terms, but in such case this policy will continue in force for the benefit of the mortgagee (or trustee) for ten (10) days after notice to the mortgagee (or trustee) of such cancellation and will then cease, and the Company will have the right, on like notice, to cancel this agreement. Whenever the Company will pay the mortgagee (or trustee) any sum for LOSS* under this policy and will claim that, as to the mortgagor or owner, no liability therefore existed, the Company will, to the extent of such payment, be thereupon legally subrogated to all rights of the party to whom such payment will be made, under all securities held as collateral to the mortgage debt or may, at its option, pay to the mortgagee (or trustee) the whole principle due or to grow due on the mortgage with interest, and will thereupon receive a full assignment and HTKC001 PAGE 17 OF 20 Page 185 of 250 Agenda Item #16. transfer of the mortgage and of all such other securities; but no subrogation will impair the right of the mortgagee (or trustee) to recover the full amount of said mortgagee's (or trustee's) claim. 18. NO BENEFIT TO BAILEE: No person or organization, other than an insured, having custody of PROPERTY INSURED* will benefit from this policy. 19. OTHER INSURANCE: Except as stated in CONTRIBUTING INSURANCE and EXCESS INSURANCE above, if there is other collectible insurance, this policy will cover as excess insurance and will not contribute with such other insurance. 20. PAIR & SET: (1) In the event of LOSS* to any insured article or articles which are part of a pair or set, the measure of loss of or damage to such article or articles will be a reasonable and fair proportion of the total value of the pair or set, giving consideration to the importance of said article or articles, but in no event will such LOSS* be construed to mean total loss of the pair or set; or (2) In the event of LOSS* to any part of PROPERTY INSURED* consisting, when complete for use, of several parts, the Company will only be liable for the value of the part lost or damaged. 21. PARTIAL LOSS: The Company hereby grants permission to repair any partial damage to the PROPERTY INSURED* which can be convenientlyand advantageously undertaken by the Insured. The Company will reimburse the Insured who has suffered the LOSS* for the actual cost of such repairs, subject always to the applicable deductible and limits of liability stated in the Declarations. Nothing in this clause shall be deemed to have waived the requirement that notice of loss be given forthwith to the Company as provided in this policy. 22. PROTECTION OF PROPERTY: The Insured will take reasonable and necessary steps to protect, recover or save the PROPERTY INSURED* and minimize anyfurther or potential LOSS* when the PROPERTY INSURED* is in imminent danger of sustaining LOSS* from: (1) NAMED WINDSTORM*, WINDSTORM* or other related perils, but only when the potential for the same to occur has been forecasted by the National Weather Service or similar recognized weather forecast service(s); (2) FLOOD*, but only when the potential for the same to occur has been forecasted by the National Weather Service or the U.S. Army Corps of Engineers; (3) Fire; The acts of the Insured or the Company in protecting, recovering or saving the property insured will not be considered a waiver or an acceptance of abandonment. The Insured and the Company will bear the expense incurred proportionate to their respective interests. The foregoing shall not serve to increase the Limit of Liability stated in the Declarations and shall be subject to the deductible provisions of the policy. 23. RECOVERY OR SALVAGE: Any recovery or salvage excluding proceeds from subrogation and other insurance recovered or received after a loss settlement under this policy or any recovery from surety ship, insurance, reinsurance, security or indemnity taken by or for the benefit of the Company will apply as if recovered or received prior to the loss settlement and the LOSS* will be readjusted accordingly. 24. REINSTATEMENT: With the exception of LOSS* caused by perils or coverage which is subject to an aggregate limit, any LOSS* hereunder will not reduce the amount of this policy. HTKC001 PAGE 18 OF 20 Page 186 of 250 Agenda Item #16. 25. STATUTES: If any Article(s) herein stated conflict with the laws or statutes of any jurisdiction within which this policy applies, such Article(s) are hereby amended to conform to said laws or statutes. 26. SUBROGATION:���� If the Company pays a claim under this policy, it will be subrogated, to the extent of such payment, to all the Insured's rights of recovery from other persons, organizations and entities. The Insured will execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The Company will have no rights of subrogation against: (1) Any person or entity, which is a Named Insured or an Additional Insured, as referenced in the Policy Declarations; (2) Any other person or entity, which the Insured has waived its rights of subrogation against in writing before the time of LOSS*; Notwithstanding the foregoing, it is a condition of this policy that the Company shall be subrogated to all the Insured's or Additional Insured(s)' rights of recovery against: (1) any Architect or Engineer, whether named as an Insured or not, for any loss or damage arising out of the performance of professional services in their capacity as such and caused by an error, omission, deficiency or act of the Architect or Engineer, by any person employed by them or by any others for whose acts they are legally liable, and; (2) any manufacturer or supplier of machinery, equipment or other property, whether named as an Insured or not, for the cost of making good any loss or damage which said party has agreed to make good under a guarantee or warranty, whether expressed or implied. The Insured will act in concert with the Company and all other interest concerned in the exercise of such rights of recovery. The Insured will do nothing after a loss to prejudice such rights of subrogation. If any amount is recovered as a result of such proceedings, the net amount recovered after deducting the costs of recovery, will accrue first to the Company. Any excess of this amount will be remitted to the Insured. If there is no recovery, the interests instituting the proceedings will bear the expense of the proceedings proportionately. 27. SUIT AGAINST THE COMPANY: In the event of failure of the Company to pay any amount claimed to be due hereunder, the Company, at the request of the Insured, will submit to the jurisdiction of a court of competent jurisdiction within the United States. Nothing in this condition constitutes, or should be understood to constitute a waiver of the Company's rights to commence an action in any court of competent jurisdiction in the United States to remove an action to a United States District Court or to seek a transfer of a case to another court as permitted by the laws of the United States or of any state in the United States. It is further agreed that service or process in such suit may be made upon Counsel, IF PROJECT IS LOCATED IN THE STATE OF CALIFORNIA: FLWA Service Corp, c/o Foley & Lardner LLP 555 California Street, Suite 1700 San Francisco, California, 94104-1520 IF THE PROJECT IS LOCATED IN ANY STATE OTHER THAN CALIFORNIA: Lloyd's America, Inc. Attention: Legal Department 280 Park Avenue, East Tower, 25th Floor New York, NY 10017 or his or her representative, and that, in any suit instituted against the Company upon this policy, the Company will abide by the final decision of such court or of any appellate court in the event of an appeal. Further, pursuant to any statute of any state, territory, or district of the United States, which makes provision therefore, the Company hereby designates the Superintendent, Commissioner or Director of Insurance, other officer specified for that purpose in the statute, or his successor or successors in office as its true and lawful attorney upon whom may be served any lawful process in any action, suit, or proceeding instituted by or on behalf of the Insured or HTKC001 PAGE 19 OF 20 Page 187 of 250 Agenda Item #16. any beneficiary hereunder arising out of this policy of insurance and hereby designates the above named Counsel as the person to whom the said officer is authorized to mail such process or a true copy thereof. No suit, action or proceeding against the Company or this policy for the recovery of any claim will be sustainable in any court of law or equity unless the Insured will have fully complied with all the requirements of this policy. The Company agrees that any action or proceeding against it for recovery of any LOSS* under this policy will not be barred if commenced within (12) twelve months after the OCCURRENCE* become known to the Insured unless a longer period of time is provided by applicable statute. 28. TITLES OF PARAGRAPHS: The several titles of the various paragraphs of this form and endorsements attached to this policy are inserted for reference and shall not be deemed in any way to affect the provisions to which they relate. 29. UNDERLYING INSURANCE: Permission is given for the Insured to purchase insurance on all or any part of the deductible(s) or perils of this policy. The existence of such underlying insurance shall not prejudice or affect any recovery otherwise payable under this policy. If the limits of liability of such other insurance are greater than this Policy's applicable deductible, this Policy's insurance will apply only after such other insurance has been exhausted. 'm 30. VALUATION: At the time and place of LOSS*, the basis of adjustment of a claim, unless otherwise endorsed herein, shall be as follows: (1) Property Under Construction — Cost to repair or replace the property lost or damaged at the time and place of LOSS* LOSS* with material of like kind and quality less betterment including contractor's profit and overhead and including owner's indirect expenses to the extent declared as part of the TOTAL COMPLETED VALUE*, but in no event to exceed the Limit of Liability; if not so replaced then loss shall be settled on the basis of Actual Cash Value with proper deduction for depreciation; (2) Property Of Others (Including Items Supplied by the Owner) - at owner's cost or other actual cash value, whichever is greater, including the contractor's charges; (3) Temporary Works - Cost to repair or replace the property lost or damaged with material of like kind, quality and condition but in the event not replaced recovery will not exceed Actual Cash Value; (4) Plans, Blueprints, Drawings, Renderings, Specifications or Other Contract Documents and Models —At the cost to reproduce the property with other property of like kind and quality including the cost of gathering or assembling information from back up data if replaced, or if not replaced, at the value of blank material; (5) Trees, Shrubs, Plantings and Landscaping - At cost to replace with property of like kind, quality and size plus the proper proportion of labor expended if such damage occurs after installation. (6) Property In Transit —The invoice cost plus accrued shipping charges less shipper's liability, if any. HTKC001 PAGE 20 OF 20 Page 188 of 250 Agenda Item #16. HIGHLAND ENDORSEMENT INSURANCE SOLUTIONS THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Endorsement #: * THIS INFORMATION IS COMPLETED ONLY WHEN THIS ENDORSEMENT IS ISSUED SUBSEQUENT TO PREPARATION OF THE POLICY. Company Name*: As Per Schedule of Insurers Policy Number: Named Insured* : Policy Effective Date: Producer* : Endt. Effective Date: CYBER LOSS LIMITED EXCLUSION The following exclusion is added to Part B- EXCLUSIONS AND LIMITATIONS, 1. EXCLUSIONS: y. Cyber loss meaning: (1) any LOSS*, damage, liability, expense, fine or penalties, or any other amount directly or indirectly caused by: A. the authorized or unauthorized use, access, or operation of any COMPUTER SYSTEM* or COMPUTER NETWORK* including ELECTRONIC DATA*; B. any threat of or any hoax relating to y. (1) A. above; C. any denial of service attack which disrupts, prevents, or restricts access to or use of any COMPUTER SYSTEM*, or otherwise disrupts its normal functioning or operation; (2) any LOSS* of, alteration of, or damage to or a reduction in the functionality, availability or operation of a COMPUTER SYSTEM*; or (3) any loss of use, reduction in functionality, repair, replacement, restoration or reproduction of any ELECTRONIC DATA*, including any amount pertaining to the value of such ELECTRONIC DATA*. Such Cyber loss is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the LOSS*. However, if fire and/or explosion is not excluded from this policy and a fire or explosion arises directly or indirectly from any of the events described in this exclusion, any LOSS* to PROPERTY INSURED* covered under this policy arising directly from that fire or explosion is insured, subject to the provisions of this policy. Solely for purposes of this endorsement, the following definitions are added to PART C — DEFINITIONS: COMPUTER SYSTEM* means any computer, hardware, software, communications system, electronic device (including, but not limited to, smart phone, laptop, tablet, wearable device), server, cloud or microcontroller including any similar system or any configuration of the aforementioned and including any associated input, output, data storage device, networking equipment or back up facility. COMPUTER NETWORK* means a group of COMPUTER SYSTEMS* and other electronic devices or network facilities connected via a form of communications technology, including the internet, intranet, and virtual private networks (VPN), allowing the networked computing devices to exchange ELECTRONIC DATA*. Authorized Representative ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. HTKE078 PAGE 1 OF 1 Page 189 of 250 Agenda Item #16. SURPLUS LINES DISCLOSURE and ACKNOWLEDGEMENT At my direction, has placed my coverage in the surplus lines market. As required by Florida Statute 626.916, 1 have agreed to this placement. I understand that superior coverage may be available in the admitted market and at a lesser cost and that persons insured by surplus lines carriers are not protected by the Florida Insurance Guaranty Association with respect to any right of recovery for the obligation of an insolvent unlicensed insurer. I further understand the policy forms, conditions, premiums, and deductibles used by surplus lines insurers may be different from those found in policies used in the admitted market. I have been advised to carefully read the entire policy. Named Insured By: Signature of Named Insured Date Printed Name and Title of Person Signing Name of Excess and Surplus Lines Carrier Type of Insurance Effective Date of Coverage Page 190 of 250 Agenda Item #16. AAMWINS" BROKERAGE August 30, 2021 Tina Tower Patriot Insurance Agency LLC 13901 U.S. Highway 1, Suite 8 Juno Beach, FL 33408 RE: Village of Tequesta Amwins Brokerage of Florida, Inc. 7108 Fairway Drive Suite 200 Palm Beach Gardens, FL 33418 amwins. com BUILDERS RISK QUOTATION Please find the attached quotation for Village of Tequesta. Here is a summary of the terms and conditions: INSURED: Village of Tequesta MAILING ADDRESS: 345 Tequesta Drive Tequesta, FL 33469 CARRIER: Zurich American Insurance Company (Admitted) PROPOSED POLICY PERIOD: From 8/27/2021 to 2/27/2022 12:01 A.M. Standard Time at the Mailing Address shown above QUOTE EXPIRATION DATE: Premium quotation valid for 30 days. POLICY PREMIUM: Premium $25,559.00 TRIA Not Applicable Total $25,559.00 MINIMUM EARNED PREMIUM: As per policy form COMMISSION: 10.000% of premium excluding fees and taxes SUBJECTIVITIES: See attached carriers quote The attached Quotation from the carrier sets forth the coverage terms and conditions being offered. Please review carefully with your client as terms and conditions may differ from those requested in your submission. It is your responsibility to ensure the quoted coverage terms and conditions are sufficient to meet your client's coverage needs. If after reviewing you should have any questions or requested changes, please let us know as soon as possible so we can discuss with the carrier prior to the effective date of coverage. Thank you for the opportunity to provide this Quotation and I look forward to hearing from you. Sincerely, Andrea Ford Executive Vice President I Amwins Brokerage of Florida, Inc. T 561.847.8485 1 F 877.570.9323 1 Andrea. Ford@amwins.com 7108 Fairway Drive I Suite 200 1 Palm Beach Gardens, FL 33418 1 amwins.com License OF41738 Page 1 of 1 Page 191 of 250 Agenda Item #16. Market leadership Zurich has been providing comprehensive solutions for more than 140 years around the globe Financial strength We demonstrate strength and stability: AA- S&P and A+ A.M. Best ratings Industry experience Zurich insures 90% of Fortune 500 companies, and provides cutting -edge insights for 25 industries Exceptional people We are a values -based organization and live the Zurich Commitment in all we do, which includes acting responsibly and following our core values Delivering when it matters Industry leading claims service in North America Zurich Insurance Group(Znrlch) offers l nsurance soWC..saround the globe through its membercompanles. 10 ZURICH Rating as of March 31,2016, AM, Bestand S&P', ra[Ings are under ,,tlLu review and sub(ec[to change and/or affirmation. Forthelatestatings,access the r,tl,gssec[lon on www.zurichna.com-Tl ing represents the over. 11 financial status ofthe individual membercompanles of Zurich in North Amerla,Includ ing Zurich Amer I nsurance Company I n the United States and Zurich Insurance Company Ltd (Canadian Branch) In Canada; and Is no[ a recommendation of [he specifcpollcy provisions, rates or prac[Ices of each Issuing Insurance company. The Zuirich logo and Zurlch are trademarks of Zurich I nsurance Company Ltd. ©1111 Zurich American l nsurance Company. All rights re rued ©2016 Zurich Insurance Comapny Ltd (Canadian liranchJ.All rightsreserved. Al-U-GU-1220G8 CE(09/16) 112008270 Page 192 of 250 AgengfiREF? Mrams Builders Risk and Installation Quote Indication Attention: AmWINS Brokerage of Florida Inc Thank you for the opportunity to provide you with a quote proposal. The quote is based on the underwriting and rating information, including deductibles and retention, provided to date and may be subject to additional rating, pricing or underwriting considerations. Also, acceptability may be subject to an Engineering and Safety Services survey and compliance with its recommendations. This is a proposal for insurance. It is not an insurance policy. The coverages offered in this proposal are based on information received through the agent and may not include all available coverages. The agent and the customer should discuss the need for any additional or optional coverages. Coverage descriptions are abbreviated and do not indicate in force coverage. Only the policy itself provides coverage. This proposal is not a part of and is not incorporated into the insurance policy. If there is any conflict between the coverage descriptions shown in this proposal and the actual insurance policy, the insurance policy prevails. The insurance policy supercedes this proposal. This is a proposal for insurance. It is not an insurance policy. Only the policy itself provides coverage. The coverages offered in this proposal are based on information received through the agent and may not include all available coverages. The client should discuss any additional or optional coverages needed. Coverage descriptions are abbreviated and do not indicate in force coverage. This proposal is not apart of and is not incorporated into the insurance policy. If there is any conflict between the coverage description shown in this proposal and the actual insurance policy, the insurance policy prevails. The insurance policy supercedes this proposal 0 ZURICH Page 193 of 250 Agengfitle?? P rams Builders Risk and Installation ZURICH Quote Indication Our Builders Risk Plan offers world -class coverages, flexibility and service to agents and builders nationwide. For more than 40 years, we've been pioneering the development of insurance solutions for construction professionals and have protected the property interests of builders and developers on even the most intricate residential and commercial construction projects. The Builders Risk and Installation product offers a wide spectrum of property coverage. Here are a few highlights of the coverages offered: Limits: • Construction Forms and Scaffolding (including the re -assembling and re -erecting) $100,000 • Valuable Papers and Records — Cost of Research $100,000 • Outdoor Trees, Shrubs, Plants and Lawns $100,000 • Debris removal expense up to 50% of the amount paid for direct loss, subject to a maximum of: $250,000 • Pollutant clean-up and removal of land and water each 12 month period of the policy $250,000 • Fire Department Service Charge $100,000 • Cost to Refill Fire Protection Devices up to $10,000 $25,000 • Claims Preparation Expense $25,000 • Contract Penalty $50,000 • Limited Fungus, Wet Rot, Dry Rot and Bacteria $15,000 • Rewards $25,000 • No Coinsurance clause Included • Foundations, excavations and other underground property Included • Temporary structures including office trailers, tool trailers and fencing Included • Coverage for electrical, mechanical, pneumatic or hydrostatic testing, as defined in the form, used in the start-up and testing of building systems Included • Occupancy coverage 60 Days • Valuation can include profit if included in the Limit of Insurance you selected Included • Collapse coverage Included • No glass limitations; no theft restrictions; no mechanical or electrical breakdown exclusions; no back- up sewer or drain exclusion or limitation Included • Coverage for resulting loss by a Covered Cause of Loss caused by faulty design, faultyworkmanship or faulty materials Included Strong, reliable insurance protection is available from Zurich Programs. Zurich Programs is an integral part of Zurich North America. Zurich Financial Services (www.zurich.com) is an insurance -based financial services provider with a global network that focuses its activities on its key markets in North America and Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. Through its offices in more than 50 countries, 57,000 Zurich employees serve clients in more than 120 countries. In North America, Zurich (www.zurichna.com) is a leading commercial property -casualty insurance provider serving the global corporate, large corporate, middle market, specialties and programs sectors. This is a proposal for insurance. It is not an insurance policy. Only the policy itself provides coverage. The coverages offered in this proposal arc based on information received through the agent and may not include all available coverages. The client should discuss any additional or optional coverages needed. Coverage descriptions are abbreviated and do not indicate in force coverage. This proposal is not a part of and is not incorporated into the insurance policy. if there is any conflict between the coverage description shown in this proposal and the actual insurance policy, the insurance policy prevails. The insurance policy supercedes this proposal Page 194 of 250 AgengfiREF? P rams Builders Risk and Installation Quote Indication WIN Prepared For Village of Tequesta 345 Tequesta Dr Tequesta, FL 33469 Presented By AmWINS Brokerage of Florida Inc 17748658 Proposed Policy Period From 8/27/21 To 2/27/22 (12:01 a.m. Standard Time at your address as stated herein) This is a tentative quote indication subject to receipt of the following: *No Loss Statement from Project Start Date to Policy Effective Date *Cost Breakdown 319556-1 ZURICH Location Information 399 Seabrook Rd Protection Class: 3 Tequesta FL 33469 Construction: Masonry Non Combustible # of Stories: 2 Project Description New construction of a 2-story Community Center building This is intended only as a brief outline and does not alter any of the coverages, conditions, exclusions or provisions contained in the policy. Total Premium $25,559 *Premium quotation valid for 30 days. PREMIUM FULLY EARNED If the project is not completed within the estimated completion time of 6 month(s), any extension of coverage will require approval/agreement to extend and re -negotiation of rates, terms and conditions if the extension is approved. This is a proposal for insurance. It is not an insurance policy. Only the policy itself provides coverage. The coverages offered in this proposal are based on information received through the agent and may not include all available coverages. The client should discuss any additional or optional coverages needed. Coverage descriptions are abbreviated and do not indicate in force coverage. This proposal is not apart of and is not incorporated into the insurance policy. if there is any conflict between the coverage description shown in this proposal and the actual insurance policy, the insurance policy prevails. The insurance policy supercedes this proposal Page 195 of 250 Agengfitle?? P rams Builders Risk and Installation Quote Indication The following summarizes the proposal for your insurance. This is not a contract. The terms of the policy forms will control the insurance contract without regard to any statement made below. Coverage Limit at the Project Site $10,000 $5,938,954 Property while in Transit $10,000 $500,000 Property at temporary location $10,000 $500,000 For all covered property $10,000 $5,938,954 Soft Costs N/A Not Covcrcd Business Income & Extra Expense N/A Not Covered Earth Movement Zone N/A N/A Not Covered Flood Zone N/A N/A Not Covered Existing Structure Coverage N/A Not Covered Ordinance or Law - Undamaged Portion 'A' Included $5,938,954 Ordinance or Law - Demolition 13' Included $500,000 Ordinance or Law - Increased Cost'C' Included $500,000 Testing Coverage for Building Systems $10,000 Included This is a proposal for insurance. It is not an insurance policy. Only the policy itself provides coverage. The coverages offered in this proposal are based on information received through the agent and may not include all available coverages. The client should discuss any additional or optional coverages needed. Coverage descriptions are abbreviated and do not indicate in force coverage. This proposal is not apart of and is not incorporated into the insurance policy. if there is any conflict between the coverage description shown in this proposal and the actual insurance policy, the insurance policy prevails. The insurance policy supercedes this proposal ZURICH Page 196 of 250 AgengfiREF? P rams Builders Risk and Installation Quote Indication Windstorm & Hail 3.0% of values at risk subject to S25,000 minimum 24-hour Claim Service Included in Project Site Limit Our claim representatives understand businesses like yours and recognize how difficult a business shutdown can be for you. So, while they provide service that's fast, responsive and fair, their ultimate goal is to minimize your business disruption and get you back to full operation as promptly as possible. In the event you have a loss, we now offer online loss reporting with immediate acknowledgement. Your claim is assigned to a local claim office, usually within two hours of reporting the loss, but generally no longer than 24 hours. You can also call us toll -free at 1-800-987-3373. This is a proposal for insurance. It is not an insurance policy. Only the policy itself provides coverage. The coverages offered in this proposal are based on information received through the agent and may not include all available coverages. The client should discuss any additional or optional coverages needed. Coverage descriptions are abbreviated and do not indicate in force coverage. This proposal is not apart of and is not incorporated into the insurance policy. if there is any conflict between the coverage description shown in this proposal and the actual insurance policy, the insurance policy prevails. The insurance policy supercedes this proposal ZURICH Page 197 of 250 AgengfiRell"? P rams Builders Risk and Installation ZURICH THIS DISCLOSURE DOES NOT GRANT ANY COVERAGE OR CHANGE THE TERMS AND CONDITIONS OF ANY COVERAGE UNDER ANY POLICY. DISCLOSURE OF IMPORTANT INFORMATION RELATING TO TERRORISM RISK INSURANCE ACT SCHEDULE* Premium attributable to risk of loss from certified acts of terrorism for lines of insurance subject to TRIA: $0 *Any information required to complete this Schedule, if not shown above, will be shown in the quote or proposal. A. Disclosure of Premium In accordance with the federal Terrorism Risk Insurance Act ("TRIA"), as amended, we are required to provide you with a notice disclosing the portion of your premium, if any, attributable to the risk of loss from terrorist acts certified under that Act for lines subject to TRIA. That portion of premium attributable is shown in the Schedule above. The premium shown in the Schedule above is subject to adjustment upon premium audit, if applicable. B. Disclosure of Federal Participation in Payment of Terrorism Losses You should know that where coverage is provided by this policy for losses resulting from certified acts of terrorism, the United States Government may pay up to 80% of insured losses exceeding the statutorily established deductible paid by the insurance company providing the coverage. C. Disclosure of $100 Billion Cap on All Insurer and Federal Obligations If aggregate insured losses attributable to terrorist acts certified under TRIA exceed $100 billion in a calendar year (January 1 through December 31) and an insurer has met its deductible under the program, that insurer shall not be liable for the payment of any portion of the amount of such losses that exceeds $100 billion, and in such case insured losses up to that amount are subject to pro rata allocation in accordance with procedures established by the Secretary of Treasury. D. Availability As required by TRIA, we have made available to you for lines subject to TRIA coverage for losses resulting from acts of terrorism certified under TRIA with terms, amounts and limitations that do not differ materially from those for losses arising from events other than acts of terrorism. E. Definition of Act of Terrorism under TRIA TRIA defines "act of terrorism" as any act that is certified by the Secretary of the Treasury, in accordance with the provisions of the federal Terrorism Risk Insurance Act (`TRIA"), to be an act of terrorism. The Terrorism Risk Insurance Act provides that the Secretary of Treasury shall certify an act of terrorism: 1. To be an act of terrorism; 2. To be a violent act or an act that is dangerous to human life, property or infrastructure; 3. To have resulted in damage within the United States, or outside of the United States in the case of an air carrier (as defined in section 40102 of Title 49, United States Code) or a United States flag vessel (or a vessel based principally in the United States, on which United States income tax is paid and whose insurance coverage is subject to regulation in the United States), or the premises of a United States mission; and 4. To have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. U-GU-632-E CW (01/20) Copyright 0 2020 Zurich American Insurance Company Page 1 of 2 Inrhirlac rnnvriohtarl mntarinl of Inairnnra Carvirac nffira Inr With itc narmiccinn Page 198 of 250 Agengfitle?? Mrams BuildersRiskand4n� ZURICH No act may be certified as an "act of terrorism" if the act is committed as part of the course of a war declared by Congress (except for workers' compensation) or if losses resulting from the act, in the aggregate for insurance subject to TRIA, do not exceed $5,000,000. Copyright © 2020 Zurich American Insurance Company Includes copvriehted material of Insurance Services Office. Inc.. with its permission. U-GU-632-E CW (01/20) Page 2 of 2 Page 199 of 250 Agenda Item #16. Zurich North America Statement of No Loss 0 ZURICH I certify that there have been no losses, accidents or circumstances that might give rise to a claim under the insurance policy referenced above, from 12:01 am on (M M/D D/YY) (enter policy effective date or Cancellation date) Insured signature and date Insured printed name Witness signature and date To (MM/DD/YY) (date signed) Underwriting v2 8/2/21 Page 200 of 250