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HomeMy WebLinkAboutresolution.council.055-12RESOLUTION # .5' (Series of 2012) r A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A CONTRACT FOR OWNER CONTROLLED INSURANCE PROGRAM BETWEEN THE CITY OF ASPEN AND LOCKTON COMPANIES LLC AUTHORIZING THE CITY MANAGER TO EXECUTE SAID CONTRACT ON BEHALF OF THE CITY OF ASPEN, COLORADO. WHEREAS, there has been submitted to the City Council a contract for Owner Controlled Insurance Program, between the City of Aspen and Lockton Companies LLC, a true and accurate copy of which is attached hereto as Exhibit «A,,. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, . That the City Council of the City of Aspen hereby approves that Contract for Owner Controlled Insurance Program, between the City of Aspen and Lockton Companies LLC, a copy of which is annexed hereto and incorporated herein, and does hereby authorize the City Manager to execute said agreement on behalf of the City of Aspen. INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the 29th day of May 2012. f , �. `Michael C. Irelan&kMayor I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted" by the City Council of the City of Aspen, Colorado, at a meeting held, May 29, 2012. Ka ' n S. Koch, City Clerk J EXHIBIT A TI {E CITY OF ASPEN May 29, 2012 AMENDMENT #1 TO PROFESSIONAL SERVICES AGREEMENT The agreement dated April 23, 2012 between the City of Aspen and Lockton Companies LLC is amended May 29, 2012 per the attached insurance binders presented in EXHIBIT "A ". The contract amount is accordingly amended as follows: Initial contract amount: $8,000.00 Contract amendment #1: $238,829.58 Total Contract amount: $244,829.58 IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials, this amendment to the agreement: Ii 1 Date: 57 — 3 =y — ( Approved as to form: ity Attorney's Office LOCKTON OMPANI LLC: ,0;EL �/W [Sign re] By: u.. 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As the Insured's representative, it is your responsibility to carefully review with the Insured all of the terms, conditions, and limitations of this Confirmation of Insurance, and to specifically reconcile with the Insured any differences between those quoted and those you requested. RT Specialty expressly disclaims any responsibility for any failure on your part ,to review or reconcile any such differences with the Insured. This coverage may not be bound without a fully executed brokerage agreement. . Any amendments to coverage must be specifically requested in writing or by submitting a policy change request form and then approved by the Insurance Company Underwriters. Coverage cannot be affected, amended, extended or altered through the issuance of certificates of insurance. IMPORTANT NOTE: The Home State of the Named Insured shall be determined in accordance with the provisions of the Non - admitted and Reinsurance Act of 2010, 15. U.S.0 §8201, etc. ( "NRRA "), and the applicable law of the Home State governing cancellation or non - renewal of insurance shall apply to this Policy. INSURED: City of Aspen 530 E Main Street, Suite LL Aspen, CO 81611 -1948 CARRIER: Houston Casualty Company (AM Best Rating of A+ XIV) Non - Admitted COVERAGE General Liability — Occurrence FORM: CG 0001 12 07 POLICY NUMBER: H12PC30065 -00 POLICY TERM: 4/30/2012 to 4/30/2013 LIMITS: $2,000,000 Each Occurrence $2,000,000 General Aggregate $2,000,000 Products /Comp. Ops Aggregate $2,000,000 Personal Injury and Advertising Limit $50,000 Any One Fire Fire Legal Liability Excluded Medical Payments DEDUCTIBLE: $25,000 BI & PD Each occurrence Allocated Loss Expense is included within the retention R -T Specialty, LLC In California: R -T Specialty Insurance Services, LLC License #OG97516 500 W. Monroe Street, 28th Floor, Chicago, IL 60661 Phone - (312) 651 -6000 Fax - (312) 651 -6096 Page 11 TU. CIALTY REVISED CONFIRMATION OF INSURANCE RATE: Flat based on a Term estimated Exposure of 82 units PREMIUM: Premium $93,600.00 Surplus Lines Tax — CO — RT to File $2,808.00 TOTAL $96,408.00 TRIA: Terrorism has been accepted and is included in the above premium. TERMS AND CONDITIONS: • 25% Minimum Earned Premium at inception • Premium is 100% minimum and deposit • No Flat Cancellations • Description of Operations: Wrap up- Infrastructure Work • The terms and conditions of this quote/binder may differ from specifications originally requested. • HCC Primary Casualty does not accept, review, reject or approve certificates of insurance. Any requests for amendments to coverage must be made in writing to HCC Primary Casualty. We will not amend policy conditions prior to the date of written request. • If the Earth Movement Exclusion is removed from the proposal, prior to binding, we need a letter from the geotech engineer stating that they have reviewed the final construction plans and they find the plans acceptable for the site conditions. • If the Earth Movement Exclusion is removed from the proposal, prior to binding, we need a letter from the general contractor stating that they will comply with all the written recommendations of the geotechnical engineer. • Our standard cancellation term is 30 days except 10 days for non - payment of premium. • Cancellation, Non - payment of additional premium at audit, or non - cooperation with the audit process, or failure to provide requested enrollment and 3rd party peer review documentation may result in the removal of the Extended Products - Completed Operations coverage. • Trades not allowed to be enrolled in the wrap -up: environmental remediation contractors and architects and engineers SUBJECT TO: 1. A completed and signed Acord and Supplemental Application — required within 15 days of binding 2. Signed Terrorism selection form ASAP. 5. Confirmation Wrap Administration will be handled by Lockton FORMS AND ENDORSEMENTS: 1. Policy Jacket 2. HPC 010 01 09 11 Common Policy Declarations HCC 3. IL 0017 11 98 Common Policy Conditions 4. HPC 030 02 09 11 Scheduled Forms and Endorsement R -T Specialty, LLC In California: R -T Specialty Insurance Services, LLC License #OG97516 500 W. Monroe Street, 28th Floor, Chicago, IL 60661 Phone - (312) 651 -6000 Fax - (312) 651 -6096 Page 12 RYA. TURNER SPECIALTY REVISED CONFIRMATION OF INSURANCE 5. IL 002105 04 Nuclear Energy Liability Exclusion 6. HPC 030 04 10 11 Service of Suit HCC COMMERCIAL GENERAL LIABILITY FORMS 1. HPC 020 02 11 11 Commercial General Liability Coverage Part Supplemental Declarations 2: CG 0001 12 07 Commercial General Liability Coverage Form — Occurrence 3. HPC 040 04 11 11 Definition of Employee Amendment 4_ HPC 050 07 02 12 Exclusion - Asbestos 5. HPC 050 06 07 11 Exclusion - Arsenic 6. HPC 050 19 02 12 Exclusion - Wrap Up Cross Suits — Owner and GC Exception 7. HPC 050 03 07 11 Exclusion - Lead 8. HPC 040 06 07 11 Intellectual Property Amendment 9. HPC 050 02 02 12 Exclusion - Sulfates 10. HPC 040 08 07 11 Minimum Earned Premium and Audit Premium Endorsement (100 %, 12 months) - 11. CG 2135 10 01 Exclusion — Coverage C — Medical Payments: Any Location Or Job Site 12. CG 2147 12 07 Employment - Related Practices Exclusion 13. CG 216712 04 Fungi or Bacteria Exclusion 14. CG 2186 12 04 Exclusion — Exterior Insulation And Finish Systems 15. CG 2196 03 05 Silica or Silica - Related Dust Exclusion 16. CG 2165 Total Pollution Exclusion with Exception for Hostile Fire and Building Equipment 17. CG 2012 05 09 Additional Insured — State of Political Subdivisions — Permits 18. CG 201811 85 Additional Insured — Mortgagee, Assignee Or Receiver: Any mortgagee, assignee, or receiver when you and such mortgagee, assignee, or receiver have agreed in writing in a contract or agreement that such mortgagee, assignee, or receiver be added as an additional insured on your policy. 19. HPC 040 09 01 12 Wrap up Program Change Endorsement a. Project Name: Burlingame Ranch Phase II b. Project Address: Aspen, CO 81611 (and end of Harmony Rd and immediately west of Burlingame Ranch Phase 1) c. Project Sponsor: City of Aspen d. Project Description: Site Development work 20. HPC 080 01 11 11 Deductible Liability Insurance 21. HPC 040 14 12 11 Defense Costs & Supplementary Payments Incld Within the Limits of Ins. 22. CG 2234 07 98 Exclusion — Construction Management Errors and Omissions 23. CG 2279 Exclusion — Engineers, Architects or Surveyors Professional Liability 24. CG 2301 12 04 Exclusion — Real Estate Agents Errors Or Omissions 25. HPC 050 01 02 12 Exclusion — Earth Movement 26. CG 21 53 — Designated Ongoing Operations Exclusion: Any vertical construction 27. CG 2170 01 08 Cap on Losses from Certified Acts of Terrorism 28. IL 0985 01 08 Disclosure Pursuant to Terrorism Risk Insurance Act 29. HPC 040 11 09 11 Limited Coverage — Repair Work (extension for onsite repairs after policy expiration) Upon notification from the Insured and prior to the beginning of construction other than what is listed above, we will endorse the policy with the following: - Increase the policy term no longer than 5 years in total - Amend Description of Operations and form HPC 040 09 01 12 to include the following wording: Construction of 82 townhomes within 7 frame buildings (3 stories of frame over concrete pads) for R -T Specialty, LLC In California: R -T Specialty Insurance Services, LLC License #OG97516 500 W. Monroe Street, 28th Floor, Chicago, IL 60661 Phone - (312) 651 -6000 Fax - (312) 651 -6096 Page 13 'SPECIALTY T FIYAN TURNER REVISED CONFIRMATION OF INSURANCE deed restricted city workers. - Form CG 2153 01 96 will be removed from the policy. - Additional Premium charged will be $200,000, plus 4% for TRIA. CONFIRMED BOUND BY: CONFIDENTIAL Terry McCann "This contract is delivered as surplus line Insurance under the 'Nonadmitted Insurance Act The Insurer Issuing this contract is not admitted In Colorado but is an approved non - admitted Insurer. There Is no protection under the provisions of the 'Colorado Insurance Guaranty Association Act." R -T Specialty, LLC In California: R -T Specialty Insurance Services, LLC License #OG97516 500 W. Monroe Street, 28th Floor, Chicago, IL 60661 Phone - (312) 651 -6000 Fax - (312) 651 -6096 Page 14 RYAN TURNER i y $ REVISED CONFIRMATION OF INSURANCE DATE: May 18, 2012 TO: Lockton Companies, LLC - Denver Matt Goss FROM: Terry McCann We are pleased to confirm that coverage has been bound with the carrier shown below in accordance with terms, conditions, and limitations provided by the carrier for you and your insured to review. As the Insured's representative, it is your responsibility to carefully review with the Insured all of the terms, conditions, and limitations of this Confirmation of Insurance, and to specifically reconcile with the Insured any differences between those quoted and those you requested. RT Specialty expressly disclaims any responsibility for any failure on your part to review or reconcile any such differences with the Insured. This coverage may not be bound without a fully executed brokerage agreement. Any amendments to coverage must be specifically requested in writing or by submitting a policy change request form and then approved by the Insurance Company Underwriters. Coverage cannot be affected, amended, extended or altered through the issuance of certificates of insurance. IMPORTANT NOTE: The Home State of the Named Insured shall be determined in accordance with, the provisions of the Non - admitted and Reinsurance Act of 2010, 15. U.S.0 §8201, etc. ( "NRRA "), and the applicable law of the Home State governing cancellation or non - renewal of insurance shall apply to this Policy. INSURED: City of Aspen 530 E Main Street Suite LL Aspen, CO 81611 -1948 CARRIER: Ironshore Specialty Insurance Co COVERAGE: Excess Liability FORM: CEI.COV.001 (10/11) Commercial Excess liability Policy POLICY NUMBER: 001346600 POLICY TERM: 4/30/2012 to 4/30/2013 LIMITS: $10,000,000 Each Occurrence Limit: $10,000,000 Aggregate: UNDERLYING: $2M /$2M - Wrap Up - HCC RATE: Flat R -T Specialty, LLC In California: R -T Specialty Insurance Services, LLC License #OG97516 500 W. Monroe Street, 28th Floor, Chicago, IL 60661 Phone - (312) 651 -6000 Fax - (312) 651 -6096 Page I 1 PREMIUM: RYAN TURNER SPECIALTY REVISED CONFIRMATION OF INSURANCE Premium (Includes TRIA) $101,000.00 Surplus Lines Tax — CO — RT to File $3,030.00 TOTAL $104,030.00 TERMS AND CONDITIONS: • 25% Minimum Earned Premium at inception • Premium is 100% minimum and deposit — 100% earned in 12 months • No Flat Cancellations • Designated Project: Site development and walkways, retaining wall which will later become part of the garages during construction of the remaining work. • 10 -day notice of cancellation applies tf premium is not received within 30 days. • All OTHER TERMS AND CONDITIONS APPLY PER FORM SUBJECT TO: 1.1 Signed and dated Wrap Application DUE AT TIME OF BINDING FORMS AND ENDORSEMENTS: 1. CEI.COV.ODI (10/11) Commercial Excess Liability Policy 2. CEI.DEC.DDI (10/11) Commercial Excess liability Declarations Page 3. CEI.END.DOI (10/11) Schedule of Underlying Insurance 4. CEI.END.DII (10/11) Employment Related Practices Liability 5. CEL.END.020 (10/11) Nuclear Liability Exclusion 6. CEI.END.00S (10/11) Amendatory Endorsement - Crisis Management Exclusion 7. CELEND.027 (10/11) Terrorism Exclusion 8. CELEND.030 (10/11) Violation of Economic or Trade Sanction (OFAC) 9. CEI.END.006 (10/11) Asbestos Exclusion 10. CEL.END.031 (10/11) War or Military Exclusion 11. CEL.END.022 (10/11) Other Laws Exclusion 12. CEL.END.00S (10/11) Claims Notification - Construction 13. CEI.END.OIS (10/11) Issuance of Commercial Excess Liability Policy Prior to Receipt of Controlling Underlying 14. CEI.END.017 (10/11) Minimum Earned Premium 15. CEL.END.025 (10/11) Service of Suit 16. Manuscript: Single General and Products - Completed Operations Aggregates (no aggregate reinstatements) 17. Manuscript: Option to add vertical construction - 82 townhomes within 7 frame buildings (3 stories of frame over concrete pads) for deed restricted city workers. Policy term to be increased to a maximum of 5 years total. Notification must be provided prior to 4/15/13 with all work to be completed by 60 months. ($75,000 AP, plus 1% TRIA) CONFIRMED BOUND BY: Terry McCann R -T Specialty, LLC In California: R -T Specialty Insurance Services, LLC License #OG97516 500 W. Monroe Street, 28th Floor, Chicago, IL 60661 Phone - (312) 651 -6000 Fax - (312) 651 -6096 Page 12 RYA N TURNER SPECIAP.,TY REVISED CONFIRMATION OF INSURANCE "This contract is delivered as surplus line Insurance under the 'Nonadmitted Insurance Act. The Insurer Issuing this contract is not admitted In Colorado but is an approved nonadmitted Insurer. There Is no protection under the provisions of the 'Colorado Insurance Guaranty Association Act" CONFIDENTIAL R -T Specialty, LLC In California: R -T Specialty Insurance Services, LLC License #OG97516 500 W. Monroe Street, 28th Floor, Chicago, IL 60661 Phone - (312) 651 -6000 Fax - (312) 651 -6096 Page 13 ACE AMERICAN INSURANCE COMPANY ACE Global Underwriting Group - Inland Marine 601 So. Figueroa St., 15th Fl., Los Angeles, CA 90017 Page 1 PH: 213 - 833 -3198 (DAY), 213 - 833 -3131 (FAX) BINDER: PROJECT BUILDER'S RISK ® Policy No. 12 1067544 001 TO: Mr. Matt Goss FROM: Cheryl Eidenbock COMPANY: Lockton Companies DATE: 04/27/2012 Denver, CO 80237 -2984 EMAIL: Matt.Goss @lockton.com EMAIL: cheryl.eidenbock(&acegroup.com RE: City of Aspen Burlingame Infrastructure Aspen, CO PROJECT: City of Aspen Burlingame Infrastructure Thank you for the bind order on the above account. We are pleased to bind this Project Builder's Risk on behalf of ACE American Insurance Company, an admitted facility and member company of ACE USA. Please review this binder carefully. Effective Date: Est. 0413012012 Expiration Date: Est. 04/30/2013 Company: ACE American Insurance Company - Admitted Coverage: Builder's Risk Coverage Form(s): Inland Marine Completed Value Project Builder's Risk Form ACE0219 (01 -05) Covered Perils: Risks of direct physical loss or damage subject to the terms, conditions and exclusions in the policy forms and as specified below Valuation: Per form, as highlighted below Job Site Location: Burlingame Ranch Phase II Aspen, CO Project Description: Infrastructure work for planned townhome community Intended Occupancy: Infrastructure City of Aspen Infrastructure LQ ACE AMERICAN INSURANCE COMPANY ACE Global Underwriting Group - Inland Marine 601 So. Figueroa St., 15th Fl., Los Angeles, CA 90017 Page 2 PH: 213 - 833 -3198 (DAY), 213 - 833 -3131 (FAX) I. Estimated Value of A. $7,000.000 Estimated mated construction contract price; Contract Works at B. NIA - Value of all property not declared in A. above to be insured by this policy and Policy Inception: intended for installation under the construction contract, whether supplied by the project owner(s), or other(s); C. $7,000,000 - Estimated completed value of contract works at policy inception. D. $No Coverage - Soft Costs in the aggregate E. $No Coverage - Rental Income in the aggregate $7,000,000 - Total Insurance Values II. Limit of Liability: $7,000,000 (100 0/6) part of $7,000,000 - per Occurrence The Company will pay no more than the above limit(s) of liability in any one occurrence. In addition, the Company will not be liable for more than its proportionate share (1000/6) of the following sublimits and aggregate limits, which are part of, and not in addition to, the Limit of Liability above: Sublimits of Liability: A. Physical damage or loss to covered property $ 7,000,000 B. Soft Costs- Per Endorsement No. to be advised $ No Coverage C. Rental Income — Per Endorsement No. to be advised $. No Coverage D. Property in- transit on any one conveyance $ 500,000 E. Off -site storage any one location $ 500,000 F. Installed Trees and Shrubs $ 100,000 Subject to a maximum for any one tree or shrub of: _$ 5,000 G. Expediting Expense any one occurrence $ 100,000 H. Debris removal, the lesser of 25% of the insured physical loss Included (.Ordinance or Law $ No Coverage J. Fire department service charge $. 100,000 K. Valuable papers and records $ 100,000 L. Loss adjustment expenses $ 10,000 Additional Sublimits of Liability: Construction Forms, Scaffolding and False Work Included Temporary Structures including office & tool trailers and fencing -Included Water Damage ( Other than Flood ) in any one occurrence $ 7,000,000 Normal Windstorm ( Other than Named ) in any one occurrence $ 7,000,000 Aggregate Limits of Liability: A. Flood annual aggregate limit $_ 7,000,000 B. Earth Movement annual aggregate limit $ 7,000,000 C. Pollutant Clean -up & Removal $ 100,000 Sub - Limits of Liability and Aggregate Sub - Limits of Liability are part of and not in addition to the overall occurrence Limit of Liability City of Aspen Infrastructure ACE AMERICAN INSURANCE COMPANY ACE Global Underwriting Group Inland Marine 601 So. Figueroa St., 15th Fl., Los Angeles, CA 90017 Page 3 ,PH: 213 - 833 -3198 (DAY), 213 - 833 -3131 (FAX) Ill. Deductibles - per occurrence All Covered Causes of Loss; except, $ 10,000 per Occurrence Water Damage $ 25,000 per Occurrence Physical Loss or Damage as respects the peril of $ 25,000 per Occurrence Earth Movement Physical Loss or Damage as respects the peril of $ 25,000 per Occurrence Flood Soft Costs /Rental Income per Occurrence 30 Day Waiting Period Where a percentage deductible is shown above, the deductible shall be the greater of the dollar amount shown or stated percentage of the total insured values at the project location at time and date of loss If one or more deductibles are contained in a Followed Policy, we will not pay any loss until the applicable deductibles have been exhausted. We will then pay our percentage share of loss up to our Limit of Liability. IV. Rates and Adjustment: Coverage Type Adjustment Rate Term Premium Hard Costs $0.07 — Term Rate per $100 $4,900 Premium(s): Deposit Premium $4,900 excluding TRIA Extensions: If construction is not completed by expiration date listed above and an extension is requested, rates, terms and conditions are to be approved by the Company prior to binding. Minimum Earned Premium: TRIA Deposit Premium City of Aspen Infrastructure $1,225 3.00% of Total Deposit Premium i ACE AMERICAN INSURANCE COMPANY ACE Global Underwriting Group - Inland Marine 601 So. Figueroa St., 15th Fl., Los Angeles, CA 90017 Page 4 PH: 213 - 833 -3198 (DAY), 213 - 833 -3131 (FAX) SPECIAL CONDITIONS AMENDMENTS: ADDITIONAL NAMED INSUREDS: + As their interests may appear by contract, its sub - contractors of every tier, and other interests to be advised, if any. PERMISSION FOR OCCUPANCY: + Permission for Occupancy may be granted during policy term for the purposes intended for this described project. Any other use or occupancy must be declared to the Company for agreement in advance. PREMIUM ADJUSTMENT: + There shall an adjustment of premium or return premium for actual completion or final total completed values of contract works less than the amount declared at inception date. POLICY TERM EXTENSION PROVISION: + Policy Term extension of the policy expiration date is agreed up to no more than sixty (60) days at pro rata of the Annual Adjustment Rates shown, and subject to prior approval of the Company for such policy term extension. TERM EXTENSION REPORTING PROVISION: + An additional premium shall be charged for any term extension of the policy. If any policy term extension is requested, the Named Insured must report the completed values of contract works estimated for the project including values of all construction work, additions and change orders for the project at that time, and pay for any increase of total completed values of contract works for the full applicable policy term4period from the policy inception date, plus additional premium charge for the policy term extension itself. TESTING: + Testing of all building equipment systems are covered as Cold Testing. SUBJECT TO: Inspection: Favorable inspection(s) during policy term period and compliance with recommendations, if any. Excess Insurance: Permission granted for Excess insurance over the ACE American Insurance Company Policy Limit subject to disclosure of Excess insurance limits, the insurers, layering and premium(s) for same. Q_ City of Aspen Infrastructure ACE AMERICAN INSURANCE COMPANY ACE Global Underwriting Group - Inland Marine 601 So. Figueroa St., 15t' Fl., Los Angeles, CA 90017 PH: 213 - 833 -3198 (DAY), 213- 833 -3131 (FAX) SPECIAL CONDITIONS & ADDITIONAL UNDERWRITING INFORMATION REQUESTED (1.) Binder is valid for a period of 30 -days. (2.) Note that per submission we will not • Delete Land Exclusion • Delete artificial current exclusion • Delete rust & corrosion exclusion • No change in resulting damage wording Page 5 Terms S Conditions: Valuation: Property Under Construction - The cost to repair or replace the property lost or damaged at the time and place of loss with material of like kind and quality less betterment, including contractor's reasonable profit and overhead not exceeding the percentages in the original contract; if not so replaced then loss shall be settled on the basis of'Actual Cash Value with proper deduction for depreciation. Property of Others (Including Items Supplied by the Owner) - The Owner's cost or other Actual Cash Value, whichever is greater, including the contractor's charges. Temporary Works - The 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. Installed Trees and Shrubs - The cost to replace with property of like kind, quality and size plus the proper proportion of labor expended if such damage occurs after installation. We will pay for losses to covered property by determining its Replacement Cost provided that the Insured actually repairs or replaces the lost or damaged property, or begins to repair the damaged covered property, within 24 months from the date of loss or damage, otherwise, the Company will pay for losses to covered property by determining its Actual Cash Value. Mandatory All policy form exclusions including but not limited to Earthquake and / or Land Movement, Flood, Named Exclusions & Windstorm, Pollution & Contamination, Asbestos, Electronic Data / Cyber Risk, Mold / Fungus, and Amendments: Nuclear, Biological and Chemical exclusions. City of Aspen Infrastructure ACE AMERICAN INSURANCE COMPANY ACE Global Underwriting Group - Inland Marine 601 So. Figueroa St., 15th Fl., Los Angeles, CA 90017 Page 6 PH: 213 - 833 -3198 (DAY), 213 - 833 -3131 (FAX) Remarks: TRIA: Attached please find a Disclosure Notice required by the Terrorism Risk Insurance Program Reauthorization Act of 2007 ( "Reauthorization Act "). The premium charge for the terrorism coverage is set forth on the Disclosure Notice. This forms part of the overall premium quoted above for the Company's participation. Certificates of Insurance: Please be advised that we do not review Certificates of Insurance or Evidences of Commercial Property Insurance issued by you, or by any party, relating to this policy of insurance either for content or accuracy. Accordingly, we request that you do not provide copies of certificates or evidences to us for review or for our records. Authority is granted to you for the limited purpose of issuing unmodified ACORD Certificates ( ACORD 25 -S for Casualty and ACORD 24 for Property and Inland Marine) and unmodified. Evidence of Commercial Property Insurance ( ACORD 28) only. It is your responsibility to see that any Certificate or Evidence provides an accurate representation of the coverage form and endorsements applicable to this policy at the time the Certificate or Evidence is issued. Any modification of the approved ACORD forms specifically set forth above, or the issuance of a non- approved Certificate of Insurance ACORD or other is prohibited. Certificates of Insurance or Evidence of Commercial Property Insurance may only be issued as a matter of information. You have no authority by virtue of a Certificate, Evidence, or otherwise, to amend, extend or otherwise alter coverage afforded under this policy. Certificates of Insurance or Evidences of Commercial Property Insurance are never recognized as endorsements or policy change requests. You must submit a separate written request if an endorsement or policy change (including but not limited to adding additional insureds, loss payees and mortgagees and /or alteration of notice requirements for cancellation) is requested. In the event a policy change is requested, the underwriter will advise if request is acceptable to the Company. City of Aspen — Burlingame Infrastructure Policyholder Policy Number: 121067544 001 Lockton Denver, CO Producer City of Aspen Infrastructure ACE American Insurance Company Insurance Company Admitted Chartis Insurance Agency, Inc. 777 S FIGUEROA STREET LOS ANGELES, CA 90017 April 30, 2012 Attn: EMMY JENNINGS Producer Name: LOCKTON COMPANIES LLC Address: 8110 E UNION AVE., STE 700 DENVER, CO 80237 -2966 Phone: 303 - 414 -6483 Fax: 313- 865 -6483 Email: EMMY.JENNINGS @LOCKTON.COM Re: Insurance Binder Named Insured: ASPEN, CITY OF (INC) Address: 130 S GALENA ST ASPEN, CO 81611 -1902 Operations: Per application CHARTIS�` CONTRACTOR'S POLLUTION LIABILITY (CPO) coverage has been bound for the above - captioned account. Coverage is bound using the CHARTIS SPECIALTY INSURANCE COMPANY, Form #96680 (11/09). Chartis is a world leading property- casualty and general insurance organization serving more than 40 million clients in over 160 countries and jurisdictions. With a 90 -year history, one of the industry's most extensive ranges of products and services, deep claims expertise and excellent financial strength, Chartis enables its commercial and personal insurance clients alike to manage virtually any risk with confidence. Chartis is the marketing name for the worldwide property - casualty and general insurance operations of Chartis Inc. For additional information, please visit our website at www.chartisinsurance.com . Please feel free to contact me with any questions. Thank you for choosing to place your business with Chartis. Sincerely, LUNA BOWSER UNDERWRITER Tel: 213- 689 -2721 Fax: -- - - - - -- LUNA.BOWSER@CHARTISINSURANCE.COM ASPEN, CITY OF (INC) CIB004 Submission Number: 00065531057 Page 1 of 4 Premium Indication: 000349982 -003 Issue Date: April 30, 2012 Environmental Insurance Binder Product Name: CONTRACTOR'S POLLUTION LIABILITY (CPO) Policy Period: From: April 30, 2012 To: April 30, 2017 Policy Number: CPO 18426844 New/ Renewal: NEW Named Insured: ASPEN, CITY OF (INC) Issuing Company: CHARTIS SPECIALTY INSURANCE COMPANY Producer: LOCKTON COMPANIES LLC Submission Number: 00065531057 SECTION I - Coverages, Limits, and Deductibles: Coverage - Occurrence Limit of Liability: $3,000,000 $ 250,000 $3,000,000 Deductible: $25,000 Additional Section I Information: Coverage A Each Loss Coverage B Each Claim Aggregate Each Loss NOTICE: PLEASE READ CAREFULLY THE ATTACHED POLICYHOLDER DISCLOSURE STATEMENT UNDER TERRORISM RISK ACT OF 2002. YOU HAVE ACCEPTED THIS COVERAGE. SECTION II - Additional Policy Information: Policy Premium: $70,572 *" The Premium amount(s) stated above does not include surplus lines tax, or surplus lines fees. Premium for Certified Acts of Terrorism Coverage: $629.00 (included in Policy Premium) Minimum Earned Premium: 25% Revenue Basis: $33,000,000.00 Additional Section II Information. SECTION III - Forms The CHARTIS SPECIALTY INSURANCE COMPANY, Form #96680 (11/09) Form will be modified as follows: - Notice of Loss /Notice of Claim, Form #91968 (12/06) - CSIC CPO Dec, Form #96681 (11/09) - Terrorism Excl W /Cert Acts Exception Purchased End, Form #97637 (03/08) - Crisisresponse and Crisis Management Endorsement, Form #109055 (07/11) ASPEN, CITY OF (INC) CIB004 Submission Number: 00065531057 Page 2 of 4 Premium Indication: 000349982 -003 Issue Date: April 30, 2012 Schedule Of Approved Crisis Management Firms, Form# 109399 (11 /11) - Projectprotect Project Owner Controlled End, Form #109168 (09/11) Additional Section III Information: SECTION IV - Services: At Chartis, we enhance the coverage of every environmental insurance policy by giving insureds complimentary access to the following tools and programs proven to help manage environmental risk, mitigate environmental losses, and conduct loss control: PIER (Pollution Incident and Environmental Response) Policyholders have access to pre- screened crisis management specialists who respond in a timely manner to environmental incidents at pre- negotiated rates. Environmental insurance policyholders are automatically enrolled in this program. Claims Expertise Our pollution claims operation, with 80 + claims specialists, is the largest in the industry. RiskTool System The complimentary, web -based system brings together a myriad of information that a company needs to manage Environmental, Health and Safety (EH &S) programs in one virtual "reference desk." SCAN (Specialty Claims Assistance Network) Specialists are available to swiftly address indoor air quality issues that are faced by our insureds, thus helping them mitigate water and mold damage. Transportation Loss Control Programs We provide a number of transportation - related programs for insureds that reinforce 'positive driving behavior and potential improvements in loss reduction. These programs include preventive driving sessions and mock Department of Transportation audits. Environmental Portal Portal is secure, Internet -based system that allows our clients to track environmental insurance policies for multiple site portfolios. Chartis is committed to the achievement of effective risk management objectives for clients as well as providing them access to incident response assistance in the event of a pollution - release event. SECTION V - Subject To Information: We require that you send us a completed and signed Broker Responsible for Surplus Lines Filings Agreement, and if applicable your NJ SLA #. If the items requested above are not received within ten (10) business days, we reserve the right to void this binder ab initio and any policy issued in connection with this binder. Payment of premium shall not operate to extend the binding period or nullify the voiding as described above. The above binder confirmation is subject to the receipt and satisfactory review and acceptance of the following, within 3 days of binding, unless otherwise specified: ASPEN, CITY OF (INC) Submission Number: 00065531057 CIB004 Premium Indication: 000349982 -003 Page 3 of 4 Issue Date: April 30, 2012 The policy will be issued by CHARTIS SPECIALTY INSURANCE COMPANY, 175 Water Street, New York, NY 10038. The premium must be remitted to CHARTIS SPECIALTY INSURANCE COMPANY within thirty (30) days of the effective date of the policy, or within fifteen (15) days of billing, whichever is later. It is your responsibility to follow applicable state surplus lines laws and, in particular, to see that the appropriate surplus lines tax (and stamping fee, if applicable) is collected and paid. This binder contains an outline of coverage and does not include all the terms, conditions and exclusions of the policy that may be issued. The Policy contains the full and complete agreement with regards to coverage. Please review the policy thoroughly upon receipt and notify us promptly in writing if there are any questions. NOTICE: THIS INSURER IS NOT LICENSED IN THE STATE OF NEW YORK AND IS NOT SUBJECT TO ITS SUPERVISION. i ASPEN, CITY OF (INC) CIB004 Submission Number: 00065531057 Page 4 of 4 Premium Indication: 000349982 -003 Issue Date: April 30, 2012 POLICYHOLDER DISCLOSURE STATEMENT UNDER TERRORISM RISK INSURANCE ACT OF 2002 You are hereby notified that under the federal Terrorism Risk Insurance Act of 2002 (the "Act ") effective November 26, 2002, you now have a right to purchase insurance coverage for losses arising out of an Act of Terrorism, which is defined in the Act as an act certified by the Secretary of the Treasury (i) to be an act of terrorism, (ii) to be a violent act or an act that is dangerous to (A) human life; (B) property or (C) infrastructure, (iii) to have resulted in damage within the United States, or outside of the United States in case of an air carrier or vessel or the premises 'of a U.S. mission and (iv) to have been committed by an individual or individuals acting on behalf of any foreign person or foreign interest, 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. You should read the Act for a complete description of its coverage. The Secretary's decision to certify or not to certify an event as an Act of Terrorism and thus covered by this law is final and not subject to review. There is a $100 billion dollar annual cap on all losses resulting from Acts of Terrorism above which no coverage will be provided under this policy and under the Act unless Congress makes some other determination. For your information, coverage provided by this policy for losses caused by an Act of Terrorism may be partially reimbursed by the United States under a formula established by the Act. Under this formula the United States pays 90% of terrorism losses covered by this law exceeding a statutorily established deductible that must be met by the insurer, and which deductible is based on a percentage of the insurer's direct earned premiums for the year preceeding the Act of Terrorism. Coverage for Acts of Terrorism is included in the policy referenced below. The portion of your policy premium that is attributable to coverage for Acts of Terrorism covered by the Act is $629.00. The premium stated herein does not include any surplus lines taxes or fees that may be applicable, which are the responsibility of the insured. It is the broker's responsibility to follow applicable state surplus lines laws and, in particular, to see that the appropriate premium tax (and stamping office fee, if applicable) is collected from you and paid. CHARTIS SPECIALTY INSURANCE COMPANY NAMED INSURED: ASPEN, CITY OF (INC) POLICY #: CPO 18426844 EFFECTIVE DATES: 04/30/2012 TO 04/30/2017 BINDER OR IN -FORCE POLICY WITH TERRORISM AND PREMIUM - SURPLUS'LINES 81272 (12/02) CI1952 This endorsement, effective 12:01 AM, Forms a part of Policy No: Issued to: By: ENDUR$(E:MENT NO. n�; I< THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. TERRORISM EXCLUSION WITH CERTIFIED ACTS OF TERRORISM EXCEPTION PURCHASED ENDORSEMENT This Policy is amended by the addition of the followiing Exclusion: The Company has no obligation to make any payment or to provide or to pay for a defense under this Policy due to or arising directly or indirectly as a result of or in connection with Terrorism. Terrorism means the use or threatened use of force or violence against person or property, or commission of an act dangerous to human life or property, or commission of an act that interferes with or disrupts an electronic or communication system, undertaken by any person or group, whether or not acting on behalf of or in connection with any organization, government, power, authority or military force, when the effect is to intimidate, coerce or harm a government, the civilian population or any segment thereof, or to disrupt any segment of the economy. This Exclusion does not apply to a certified "act of terrorism" which is defined by Section 102. Definitions, of the Terrorism Risk Insurance Act of 2002, as amended by the Terrorism Risk Insurance Program Reauthorization Act of 2007 as follows: ACT OF TERRORISM - (A) CERTIFICATION - The term "act of terrorism" means any act that is certified by the Secretary (of the Treasury), in concurrence with the Secretary of State, and the Attorney General of the United States - (i) to be an act of terrorism; (ii) to be a violent act or an act that is dangerous to -- (1) human life; (II) property; or (111) infrastructure; (iii) to have resulted in damage within the United States, or outside of the United States in the case of -- (1) an air carrier or vessel (described in TRIA) (11) the premises of a United States mission; and (iv) to have been committed by an individual or individuals acting 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. (8) LIMITATION -- No act shall be certified by the Secretary as an act of terrorism if -- (i) the act is committed as part of the course of a war declared by the Congress, except that this clause shall not apply with respect to any coverage for workers' compensation; or (ii) property and casualty insurance losses resulting from the act, in the aggregate, do not exceed $5,000,000. (C) DETERMINATIONS FINAL - Any certification of, or determination not to certify, an act as an act oll terrorism under this paragraph shall be final, and shall not be subject to judicial review. 97637 (3/08) C13509 FOR USE WHEN THE INSURED ELECTS FULL CERTIFIED ACTS OF TERRORISM. PAGE 1 OF 2 NO. (Continued) (D) NONDELEGATION - The Secretary my�;n person, any determination under this Paragra act of terrorism has occurred. All other terms, conditions, and exclusions shall remain the same. 97637 (3/08) C13509 or designate to any other officer, employee, or r, during the effective period of the Program, an AUTHORIZED REPRESENTATIVE or countersignature (in states where applicable) FOR USE WHEN THE INSURED ELECTS FULL CERTIFIED ACTS OF TERRORISM. PAGE 2 OF 2 This endorsement, effective 12:01 AM, Forms a part of Policy No: Issued to: By: THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CRISISRESPONSE® AND CRISIS MANAGEMENT ENDORSEMENT It is hereby agreed that: 1. The following is added to Section I. INSURING AGREEMENTS, 1. COVERAGES: COVERAGE E - CRISISRESPONSE AND CRISIS MANAGEMENT 1. Advancement of CrisisResponse® Costs during a Crisis Management Event The Company will'pay CrisisResponse® Costs on behalf of the Insured that may be associated with Loss covered by this Policy arising from a Crisis Management Event first commencing during the Policy Period. The Company will advance CrisisResponse Costs that may be associated with Loss covered by this Policy directly to third parties. 2. Crisis Management Insurance The Company will pay Crisis Management Loss on behalf of the Insured arising from a Crisis Management Event first commencing during the Policy Period. A Crisis Management Event shall first commence at the time during the Policy Period when a Responsible Insured first becomes aware of a Pollution Condition that gives rise to a Crisis Management Event and shall end at the earliest of the time when the Company determines that a crisis no longer exists or when the CrisisResponse limit of insurance and /or the crisis management limit of insurance, whichever applies, as described in Section V. LIMITS OF LIABILITY AND DEDUCTIBLE, as amended by this Endorsement, has been exhausted. 3. Any advancement of CrisisResponse® Costs or payment of Crisis Management Loss that the Company makes under the coverage provided by this coverage section will not be a determination of the Company's obligations under this Policy, nor create any duty to defend any Claim under any other part of this Policy. 2. The following are added to Section VI. DEFINITIONS: Crisis Management Event means an event that in the good.faith opinion of a Responsible Insured, in the absence of Crisis Management Services, has been associated with. or may reasonably be associated with: 1. Loss covered by this Policy; and 2. Significant adverse regional or national news media coverage. . Crisis Management Firm means any public relations firm or crisis management firm approved by the Company that is hired by the Insured to perform Crisis Management Services in connection with a Crisis Management Event. Attached to and forming a part of this Policy is a Schedule of firms that have been pre- approved by the Company and may be hired by the Insured without further approval by the Company. 109055 (7/11) PAGE 1 OF 3 C14977 EN Crisis Management Loss means the 1. Amounts for the reasonable and necessary fees the performance of Crisis Management Servi Management Event; and C4I161 � lL JIF AFII during a Crisis Management Event: incurred by a Crisis Management Firm in ured solely arising from a covered Crisis 2. Amounts for reasonable and necessary printing, advertising, mailing of materials, or travel by the Named Insured's directors, officers, employees or agents or a Crisis Management Firm incurred at the direction of a Crisis Management Firm, solely arising from a covered Crisis Management Event. Crisis Management Services means those services performed by a Crisis Management Firm in advising the Insured on minimizing potential harm to the Insured from a covered Crisis Management Event by maintaining and restoring public confidence in the Insured. CrisisResponse° Costs means the following reasonable and necessary expenses incurred during a Crisis Management Event directly caused by a Crisis Management Event, provided that such expenses have been pre- approved by the Company and may be associated with Loss that would be covered by this Policy: 1. Medical expenses; 2. Funeral expenses; 3. Psychological counseling; 4. Travel expenses; 5. Temporary living expenses; 6.- Expenses to secure the scene of a Crisis Management Event; and 7. Any other expenses pre- approved by the Company. CrisisResponse® Costs does not include defense costs or Crisis Management Loss. 3. The following is added to the end of Section IV. LIMITS OF LIABILITY AND DEDUCTIBLE, Paragraph C. DEDUCTIBLE - EACH LOSS: Coverage E Subject to Paragraphs A. and B. above, this Policy is to pay covered CrisisResponse Costs and /or Crisis Management Loss in excess of the following Deductible amount: $25,000, up to but not exceeding the limits-' set forth in Paragraph A. above; provided that payment of Deductible amounts for CrisisResponse° Costs and /or Crisis Management Loss shall erode the Deductible amount applicable to that particular Loss arising out of the same, related or continuous Pollution Conditions for all other Coverages under this Policy. The Insured shall promptly reimburse the Company for advancing any element of Loss falling within the Deductible. 4. The following is added to the end of Section IV. LIMITS OF LIABILITY AND DEDUCTIBLE, Paragraph A. LIMITS OF LIABILITY - AGGREGATE: The Company's total liability for all CrisisResponse® Costs and /or Crisis Management Loss shall not exceed $250,000 combined, regardless of the number of Crisis Management Events first commencing during the Policy Period. The Company will have no obligation to advance CrisisResponse® Costs or to pay Crisis 109055 (7/11) PAGE 2 OF 3 C14977 ENDORSEMEN;To'NO. CONTINUED gib, -4 , J Management Loss from the earliest of:the:p lime when the Company determines that a Crisis Management Event has ended or when this $250;000 hmrtw °qf liability has been exhausted. CrisisResponse® Costs and /or Crisis Management Loss shall' nQt be- included as Loss and do not reduce the available Limit of Liability. 5. The following is added to Section III. CLAIMS AND NOTICE?ROVISIONS, Paragraph A. (NSURED'S DUTIES tl WHEN THERE IS A CLAIM OR EMERGENCY RESPONSE�7 . TS: 5. The Insured must report any Crisis Management Event to the Company within twenty -four (24) hours of the time that a Responsible Insured first becomes aware of a Pollution Condition that gives rise to a Crisis Management Event or as soon as practicable to be eligible for the advancement of CrisisResponse® Costs and the payment of Crisis Management Loss. Notice of a Crisis Management Event may be given by calling 1- 877 - 2443100. If notice is given by telephone, written notice will be given as soon as practicable thereafter. Written notice should include: a. How, when and where the Crisis Management Event is taking or took place; b. The names and addresses of any injured persons and any Wtnesses; and c. The nature and location of any injury or damage arising out of the Crisis Management Event. 6. There shall be no requirement that the Insured obtain prior written approval from the Company before incurring any Crisis Management Loss, provided that the Crisis Management Firm selected by the Insured to perform the Crisis Management Services has been approved by the Company. If the Insured chooses to retain a firm that does not appear in the Schedule attached to and forming a part of this Policy, the Insured must obtain the Company's consent, which shall remain in the Company's sole discretion, prior to retaining the services of such firm. 7. Any payments for Crisis Management Loss or advancement of CrisisResponse® Costs that the Company makes under this Policy: a. Shall not be deemed to be a determination of the insured's liability with respect to any Claim or Loss under the Policy; and b. Shall not create any duty to defend any Claim or to investigate any Claim or Pollution Conditions arising from a Crisis Management Event, nor any coverage obligations under this Policy. 8. If the Crisis Management Insurance provided by this Policy and any other insurance issued to the Named Insured by the Company or any of its affiliated companies shall apply to the same crisis the maximum limit of insurance under all insurance available shall not exceed the highest applicable limit of insurance available under any one policy or endorsement. 9. In the event of a dispute between the Insured and us as to whether a Crisis Management Event has occurred, the Insured may, at its own cost, retain the services of an approved Crisis Management Firm and /or advance CrisisResponse ®Costs. Provided, however, if the Insured elects to retain an approved Crisis Management Firm or to advance CrisisResponse® Costs, the Company shall have no obligation to reimburse the Insured under this Policy for such costs or expenses. The right to reimbursement shall be arbitrated pursuant to the rules of the American Arbitration Association in New York, New York or in the state indicated in Item 1. of the Declarations of this Policy as the address of the Named Insured. All other terms, conditions, and exclusions shall remain the same. AUTHORIZED REPRESENTATIVE or countersignature (in states where applicable) 109055 (7/11) PAGE 3 OF 3 C14977 4$ END, RSEMENT NO. This endorsement, effective 1201 AM, Forms a part of Policy No: s s r Issued to: By: THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CRISISRESPONSE ®AND CRISIS MANAGEMENT SCHEDULE OF APPROVED CRISIS MANAGEMENT FIRMS ENDORSEMENT It is hereby agreed that the following public relations and non - public relations firms are approved crisis response vendors and are added to Section VI. DEFINITIONS, Crisis Management Firm, as amended on the CRISISRESPONSE® AND CRISIS MANAGEMENT ENDORSEMENT attached to this Policy: FIRM ADDRESS CONTACT INFORMATION EMERGENCY SERVICES TELEPHONE OFFERED The Abernathy MacGregor Group, Inc. 501 Madison Ave. New York, NY 10022 611 W. Sixth Street, Suite 1880 Los Angeles, CA 90017 Rhonda Barnat Managing Director (212) 371 -5999 Office (917) 912 -6378 Cell (212) 752 -0723 Fax (646) 478 -8740 Home rb @abmac.com Ian D. Campbell Vice Chairman (213) 630 -6550 Office (213) 422 -7958 Cell (213) 489 -3443 Fax (818) 957 -5650 Home (818) 541 -0954 Home Fax idc @abmac.com Ann Barks Public Relations 896 Cross Gates Ann W. Barks Boulevard Owner Slidell, LA 70461 (985) 847 -0750 Direct (985) 290 -8304 Cell abarkspr @bellsouth.net (917) 912 -6378 (818) 750 -4392 (917) 940.3476 (985) 290 -8304 Public Relations, Crisis Management services Serving clients in the US, UK, Germany, France, Italy, Switzerland, The Netherlands, Hong Kong, Spain, Latin America and China. Public Relations and Crisis Management services. Serving clients in the Gulf Coast region (Alabama, Florida, Georgia, Louisiana, Mississippi and Texas). 109399 (11/11) PAGE 1 OF 8 C15080 ,.0 to ENDORSEMENT NO. CONTINUED Lexicon Communications Corp.` 520 Bellmore Way Steven B. Fink.,,` ; (626) 683 -9333 Pasadena, CA 91103 President g (626) 683 -9333 Direct (626) 449 -7659 Fax'`° (626) 253 -1519 Cell sfink @lexiconcorp.com Briaht Liaht Marketing Grou 1001 Bishop Street, Charlene Lo Chan Suite 900 Executive Vice President and Chief Honolulu, Hawaii Operating Officer 96813 -3429 (808) 275 -3007 Direct (808) 524 -6441 Office (808) 781 -7733 Cell (808) 524 -8115 Fax charlene @brightiightmarketing.com Dix & Eaton 200 Public Square Matt Barkett Suite 1400 Managing Director , Cleveland, OH 44114- (216) 241 -3073 Direct 2316 (216) 241 -0405 Office (216) 780.7800 Cell (216) 241 -3073 Fax mbarkett@dix- eaton.com- Gary Pratt Senior Vice President (216) 241 -4613 Direct (216) 241 -0405 Office ° (440) 477 -1278 Cell gpratt@dix- eaton.com O'Neil & Associates 31 New Chardon St. Boston, Massachusetts 02114 109399 f 1 /11) C15080 Andrew M. Paven Senior Vice President (866) 989 -4321 Toll Free (617) 646 -1000 Office (617) 646 -1290 Fax apaven @oneillandassociates.com ( 216) 241 -3073 Public Relations, Crisis Management services. Serving the US and Internationally. Public Relations and Crisis Management services. Serving clients in Hawaii, Japan, Taiwan, China, American Samoa, Samoa, Federated States of Micronesia, Guam, Mariana Islands, Saipan, Marshal Islands, Palau, Kiribati and South Korea. Public Relations, Crisis Management services. Serving clients in the Great Lakes region and the Mid -West US. Public Relations and Crisis Management services. Serving clients in the New England region. PAGE 2 OF 8 END,,QRSEMENT NO. CONTINUED Edelman,a 200 E. Randolph Street, Harlan Loeb 4,'r, (866) 333 -5911 63rd Floor Executive Vice President Chicago, IL 60601 (312) 240 -2624 Direct (312) 240 -3000 Office (312) 240 -2900 Fax (312) 282 -5632 Cell harlan.loeb @edelman.com Jenifer Giller Senior Account Executive (312) 233 -1272 Direct & Cell (312) 240 -3000 Office (312) 240 -2900 Fax jenifer.giller @edelman.com Fleishman - Hilliard International Communications, Inc. John Hancock Center 200 East Randolph Street, 37th Floor Chicago, IL 60601 David Saltz Senior Vice President and Partner (312) 751 -3530 Direct (312) 751 -8878 Office (312) 312) 729 -3630 Cell (312) 751 -8191 Fax david.saitz @fleishman.com Rick Fox Senior Vice President (617) 729 -3734 Direct (312) 286 -4983 Cell (312) 751 -8191 Fax rick.fox @fleishman.com Levick Strategic Communications, LLC 1900 M Street NW Washington, D.C. 20036 Gene Grabowski Senior Vice President (202) 973 -1351 Direct ( 202) 270 -6560 Cell. (202) 973 -1301 Fax ggrabowski @levick.com Jason Maloni (202) 270 -6560 Senior Vice President (202) 973 -1335 Direct (202) 834 -9677 Cell Jason.maloni @levick.com Marsh, Inc. (Reputational Risk & Crisis Management Group) 1166 Avenue of the Tracy Knippenburg Gillis (877) 246 -2774 Americas Managing Consultant New York, NY 10036 (212) 345 -3886 Direct (516) 661 -0308 Cell 109399 (11/11) C15080 Public Relations, Crisis Management services. Serving clients in the US and Internationally. Public Relations, Crisis Management services. Serving clients in the US and Internationally. Public Relations, Crisis Management services. Serving the US, Europe, Asia and the Middle East. Public Relations, Crisis Management services. PAGE 3 OF 8 rbb Public Relations 355 Alhambra Circle, ENDORSEMENT NO. CONTINUED 6,? Public Relations and bra KM' Senior Counselor - Y a2�'i�P a Miami, Florida 33134 (212) 948- 8638Fax" Serving clients in the services. tracy.knippenburggillis@ m_h.com J us. (305) 807 -2704 Cell Serving clients in the (305) 448 -5027 Fax 345 California Street Simon R. Baker µ` Suite 1300 Vice President San Francisco, (415) 743 -8648 Direct California 94104 (9415) 367 -5707 Cell Michael Gross simon.r.baker @marsh.com rbb Public Relations 355 Alhambra Circle, Bruce S. Rubin Public Relations and Suite 800 Senior Counselor Crisis Management Miami, Florida 33134 (305) 448 -2640 Direct services. (305) 807 -2704 Cell Serving clients in the (305) 448 -5027 Fax Serving clients in the Bruce.rubin @rbbpr.com us. Robinson, Lerer & Montgomery 1345 Avenue of the Michael Gross (646) 805 -2000 Public Relations. Americas Partner Crisis Management 4th Floor (646) 805 -2003 Direct services. New York, NY (646) 805 -2000 Office 10105 (917) 853 -0620 Cell (718) 788 -5281 Home mgross @rlmnet.com Serving clients in the us. Patrick S. Gallagher Partner, Chief Financial Officer (646) 805 -2007 Direct (646) 805 -2000 Office (917) 328 -9333 Cell (646) 805 -2829 Fax (914) 232 -4256 Home pgallagher@ rlmnet.com Sard Verbinnen & Co. 630 Third Avenue, George Sard (917) 750 -4392 Public Relations, 9th Floor Chairman and CEO Crisis Management New York, NY 10017 (212) 687 -8080 Office services. (212) 687 -8344 Fax gsard @sardverb.com Serving clients in the us. 475 Sansome Street, Paul Kranhold Suite 1750 Managing Director San Francisco, CA (415) 618 -8750 Office 94111 (415) 568 -9580 Fax pkranhold @sardverb.com 109399 (11/11) PAGE 4 OF 8 C15080 END�OIiSEMENT NO. CONTINUED Sitrick and Company, Inc. s `` ti r 655 Third Avenue, Jeffrey S. Lloyd, Ph D! (310) 358 -1011 Public Relations, 22nd Floor Managing Director „_; Crisis Management New York, NY 10017 (212) 660 -6393 Direct services. (212) 573 -6100 Office (310) 963 -2850 Cell Serving clients in the (212) 573 -6165 Fax US. jeff_Iloyd @sitrick.com 1840 Century Park East, Michael S. Sitrick Suite 800 Chairman and CEO Los Angeles, CA (310) 788 -2850 Direct 90067 (310) 788 -2855 Fax services. mike—sitrick@sitrick.com The Torrenzano Grou The Lincoln Building Richard Torrenzano Public Relations, 60 East 42nd Street, Chairman and CEO Crisis Management Suite 2112 (212) 681 -1700 Ext. 111 Direct services. New York, NY (212) 681 -6961 Fax Bill Tibbo 10165 -2112 richard @torrenzano.con Serving clients in the Counseling, L3X 1E4 US. Medical Case Edward A. Orgon (888) 355 -9788 Toll Free Management, Chairman and Chief Operating Officer (416) 716 -8057 Cell Medical Cost (212) 681 -1700 Ext. 102 Direct bill @billtibbo.com Projection and (917) 539 -4000 Cell Containment (212) 681 -6961 Fax Ross McPhail services. ed @torrenzano.com Vice President Operations THE FOLLOWING NON - PUBLIC RELATIONS FIRMS ARE APPROVED CRISIS RESPONSE VENDORS FIRM ADDRESS CONTACT INFORMATION EMERGENCY SERVICES OFFERE TELEPHONE Bill Tibbo & Associates 411 Borland Court Bill Tibbo Psychological Newmarket, Ontario, Corporate Clinical Consultant and Counseling, L3X 1E4 Disaster Management Specialist Medical Case (888) 355 -9788 Toll Free Management, (416) 716 -8057 Cell Medical Cost bill @billtibbo.com Projection and Containment Ross McPhail services. Vice President Operations (905) 830 -0291 Office Serving clients in the (905) 868 -4174 Cell US & Canada. ross @bilitbbo.com 109399 (11/11) . PAGE 5 OF 8 C15080 ENDORSEMENT NO. CONTINUED Coventry Health Care, Inc. >_fr -4, 3200 Highland Ave. Dr. Michael Lacroix " x 1888) 552 -5378 Downers Grove, IL (914) 223 -4463 Cell 60515 (786) 513 -7690 Fax V14 ... jxlacroix @cvty.com Lombardi Associates 277 Fairfield Road, Suite 305A Fairfield, NJ 07004 Anthony Nastasi (877) 715 -2440 National Director of Client Services (973) 271 -8928 Direct (800) 550 -0095 Office (310) 552 -9052 Fax anthony.nastasi @lombardiassociates .com Jennifer Wolfe (803) 917 -9948 ANS Rehab Consulting, LLC 305 Tallwood Lane, Nicole Denson (888) 552 -5378 Green Brook, National Director, Client Services New Jersey 08812 (908) 279 -7532 Main Office (908) 822 -0422 Fax (646) 584 -7885 Cell nicole @ansrehabconsulting.com Anthony Sambucini Managing Partner (908) 822 -9322 Direct (908) 822 -0422 Fax (908) 720 -8644 Cell anthony @ansrehabconsultng.com 109399 (11/11) C15080 Psychological Counseling, Medical Case Management, Medical Cost Projection and Containment services. Serving clients in the US. Psychological Counseling, Medical Case Management, Medical Cost Projection and Containment services. Serving clients in the US and Canada. Psychological Counseling, Medical Case Management, Medical Cost Projection and Containment services. Serving clients in California, Connecticut, Florida, Georgia, Illinois, Kansas, Louisiana, Maine, Maryland, Massachusetts, Missouri, Nebraska, New Jersey, New Yorl Pennsylvania;'Yrginia and Texas. PAGE 6 OF 8 ENDORSEMENT NO. CONTINUED Cunningham Lindsey US (f /k /a GAB RQt 560 Peoples Plaza, Suite 215 Newark, Delaware 19702 T. J. Russo Consultants 99 Hillside Avenue, Suite X Williston Park, NY 11596 D.A.R., Inc. 41ris Drive Scarborough, Maine 04074 Gail Oliver Vice President (302) 838 -1684 Direct (302) 521 -4985 Cell (302) 838 -1685 Fax goliverg @cl- na.com Morth America, Inc.) 4, •.. (800) 621 -5410 Michael W. Russo Senior Consultant (516) 2948644 Ext. 15 Direct (516) 456 -3900 After Hours (516) 747 -1009 Fax (516) 456 -3900 Cell mwrusso123 @aol.com David W. Hunt Founder and President (207) 415 -0735 Direct (207) 883 -0493 Home (207) 883 -2436 Fax dhunt12348 @aol.com Lanny J. Davis & Associates, LLC 600 13th Street, NW Suite 600 Washington, DC 20005 Lanny J. Davis Attorney at Law (202) 756 -8211 (202) 737 -1141 Fax Idavis @lannyjdavis.com Maddie Melendez Assistant ( 202) 756- 8293 mmelendez @lannyjdavis.com (516) 456 -3900 ( 207) 415 -0735 Claims Investigative, Appraisal, Emergency Claims and Loss Call Center Operations services. Serving clients in the US and Internationally. Fire Investigation and Analysis services. Serving clients in the US. Crisis Management, Global Investigation Services, Access to National & International Intelligence Agencies, Crisis Management services. Serving clients in the US and Internationally. Legal Crisis Communications, Med Strategy, Public Advocacy, Leg & Regulatory Issues, and Crisis Managemei services. Serving clients in the US and Internationally. 109399 (11/11) PAGE 7 OF 8 C15080 ENDQ 3SEMENT NO. CONTINUED Meagher & Geer, P.L.L.P. °f 33 S. Sixth Street, Suite Russell D. Melton s � x(612) 347 -9118 4400 Attorney at Law and Partner` t Z- Minneapolis, MN 55402 (612) 371 -1317 Direct` (612) 338 -0661 Office (612) 338 -8384 Fax (612) 964 -1882 Cell rmelton @meagher.com r. Patton Boggs, LLP 2550 M Street, NW Washington, DC 20007 Thomas M. Keane Director of Strategic Business Initiatives, Litigation Practice (202) 457-7540 Direct ( 202) 256 -1289 Cell (202) 457 -6315 Fax tkeane @pattonboggs.com All other terms, conditions, and exclusions shall remain the same. Commercial and industrial fire investigation, engineering and legal services. Serving clients in the US and Internationally. Legal & Regulatory Issues, Public Relations and Crisis Management services. Serving clients in the US. AUTHORIZED REPRESENTATIVE or countersignature (in states where applicable) 109399 (11/11) PAGE 8 OF 8 C15080 This endorsement, effective 12:01 AM, Forms a part of Policy No: Issued to: By: ",'- ENDQR.SEMENT NO. 4A r THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CPL PROJECTPROTECTSM PROJECT OWNER CONTROLLED ENDORSEMENT It is hereby agreed that this Policy applies only to the Covered Operations that are performed in connection with the following specified project: 1) Project Name: Burlingame Ranch Phase II 2) Contract Designation : TBD 3) Location: 130 South Galena St, Aspen, CO 81611'incld. offsite staging and storage areas 4) Project Owner: City of Aspen 5) Type Of Project: Construction of townhomes - 7 buildings, 3 stories frame over concrete pad and total of 82 units As respects to the Covered Operations performed in connection with the preceding specified project, it is also hereby agreed that: 1. Section 1. INSURING AGREEMENTS, Paragraph 2. DEFENSE, is deleted in its entirety and replaced with the following: , 2. DEFENSE When a Claim is made against the Insured to which Section I. INSURING AGREEMENTS, Paragraph 1. COVERAGES, COVERAGE A - LEGAL LIABILITY above applies, the Company has the right to appoint counsel and the duty to defend such Claim, even if groundless, false, or fraudulent. Claim Expenses are not included in the definition of Loss, and are not subject to the Deductible amount and do not reduce the applicable limit of liability, as described in Section IV. LIMITS OF LIABILITY AND DEDUCTIBLE, until Claim Expenses in the aggregate total $ 750,000 . Upon payment of Claim Expenses equaling this total, Claim, Expenses are included within the definition of Loss, and are subject to the Deductible amount and reduce the applicable limit of liability, as described in Section IV. LIMITS OF LIABILITY AND DEDUCTIBLE. The Company shall not be obligated to defend or continue to defend any Claim after the applicable Limit of Liability has been exhausted by payment of Loss. The Company has the right and obligation to defend any Claim covered by this policy made against any Insured. All such Claims shall be defended on a "joint defense" basis, subject to applicable law, under which: (a) The Company shall appoint one counsel to defend all of the Insureds who are or may be involved with respect to any such Claim; and 109168 (9/11) PAGE 1 OF 6 C15025 ENDORSEIVtEN:NO.;,. CONTINUED (b) All of the Insureds shall have the obligation,t cooperate with respect to the investigation and joint defense of any such Claims. � A;. 1 2. Section II. EXCLUSIONS, Paragraph C. PRODUCT LIABILITYt Paragraph H. TRANSFER, STORAGE OR DISPOSAL FACILITY, Paragraph I. PROFESSIONAL LIABIL1'WX.' nd Paragraph M. INSURED VS. INSURED are deleted in their entirety and replaced with the following: C. PRODUCT LIABILITY: Based upon or arising out of the sale, distribution, design or manufacture of a product unless installed as part of Covered Operations. However, this Exclusion does not apply to any Claims or Loss based upon or arising out of any waste originating from a site at which the Named Insured is performing Covered Operations and such waste is relinquished to others to recycle or reuse in a manner that is environmentally preferable to disposal. H. TRANSFER, STORAGE OR DISPOSAL FACILITY: Based upon or arising out of any waste, products or materials which have been delivered to a transfer, storage or disposal facility located beyond the boundaries of a job site where Covered Operations are being performed. However, this Exclusion does not apply to Loss reported to the Company in accordance with Section 111. CLAIMS AND NOTICE PROVISIONS, and in no event more than three (3) years after the end of the Policy Period, based upon or arising out of any waste or any products or materials transported, shipped, or delivered to a transfer, storage or disposal facility utilized by or on behalf of the Named Insured provided that such wastes, products or materials originated from a site at which the Named Insured . is performing Covered Operations and, on the date that the waste was accepted from the Named Insured, such transfer, storage or disposal facility was: 1. Properly licensed to accept and dispose of waste and in compliance with applicable Environmental Laws; 2. Not listed, not proposed and has never been listed on the federal National Priorities List (Superfund), State equivalent list, or local equivalent list; 3. Not subject to Federal information requests under Section 104(e) of CERCLA or Section 3007 (a) of RCRA or, State or Local equivalent requests; and 4. Not operated or owned by any person or entity in bankruptcy or otherwise financially insolvent. 1. PROFESSIONAL LIABILITY: Based upon or arising out of professional services rendered or failed to be rendered by the Named Insured or others for whom the Named Insured is legally liable, including, but not limited to, recommendations, opinions or strategies rendered for architectural, consulting, design or engineering work, such as drawings, designs, maps, reports, surveys, change orders, plan specifications, assessment work, remedy selections, site maintenance, equipment selection, or related construction management, supervisory, inspection or engineering services. However, this Exclusion does not apply to: 1) any Claims alleging liability against the Named Insured on the basis of improper supervision or lack of- supervision of any sub - contractors performing Covered Operations; or 109168 (9/11) PAGE 2 OF 6 C15025 P' ., ENDORSEMENTX CONTINUED Yy a$d`I 2) Construction means, methods, techniques sequences and procedures in connection with Covered Operations performed by or on behalf of the Nametl Insured in the capacity of a construction contractor. M. INSURED VS.. INSURED: Based upon or arising out of any Claim brought by any Insured against any other Insured. This exclusion does not apply to Claims by the first Named Insured identified in Item 1. of the Declarations Page against any other Insured. 3. Section II. EXCLUSIONS, Paragraph N. OWNED PROPERTY is deleted in its entirety. 4. Section V. CONDITIONS, Paragraph I. SOLE AGENT, Paragraph K. SUBROGATION and Paragraph M. CANCELLATION are deleted in their entirety and replaced with the following: 1. SOLE AGENT The first Named Insured identified in Item 1. of.the Declarations Page shall act for and be responsible for all of the Insureds with respect to the following items: 1. Giving and receiving notice of cancellation or non - renewal; 2. Payment or return of premium; 3. Payment of any deductible or reimbursement for deductible amounts advanced by the Company; 4. Receipt and acceptance of any endorsement issued to form a part of this Policy; and 5. Receipt of and giving all communications regarding the policy from and to the Company. K. SUBROGATION If there is a payment made by the Company under this Policy, the Company shall be subrogated to all the Insured's rights of recovery against any person or organization. The Insured shall cooperate with the Company and do whatever is necessary to secure these rights. The Insured shall do nothing after a Loss to waive or prejudice such rights. Any recovery as a result of subrogation proceedings arising out of payment of Loss under this Policy (net of expenses incurred in making such recovery) shall accrue first to the Insured to the extent of any payment in excess of the limit of coverage of the Policy, then pro -rata to the Insured and the Company in proportion to the amount each actually paid as a result of judgment, settlement or defense of a Claim or Emergency Response Costs. Notwithstanding anything to the contrary in this Condition K., the Company hereby expressly waives any rights of subrogation against an entity where such right has been waived in writing by the Insured prior to a Claim or Emergency Response Costs. M. CANCELLATION This Policy may be cancelled by the Named Insured by surrender thereof to the Company or any of its authorized agents or by mailing to the Company written notice stating when thereafter the cancellation shall be effective. This Policy may be cancelled by the Company only for the reasons stated below by mailing to the Named Insured at the address shown in the Policy, written notice stating when not less than ninety (90) days (ten (10) days for nonpayment of premium) thereafter such cancellation shall be effective. Proof of mailing of such notice shall be sufficient proof of notice. 1. Material misrepresentation by the Insured. 109168 (9/11) PAGE 3 OF 6 C15025 ENDORSE`NIEN`F,N'O-,,,, a CONTINUED 2. The Insured's failure to comply with the material terms,, conditions or contractual obligations under this Policy, including failure to pay any premium or Deductibles when due. However, the Insured shall have the ability, within the first thirty (30) days (ten (10) daysfo -anon payment of premium) of the ninety (90) day notice period stated above, to cure such failure to ceimply -' with the material terms, conditions or contractual obligations. The determination of whether or : not the Insured has cured any such failure is within the sole discretion of the Company. 3. A change in Covered Operations that materially increases a risk covered under this Policy. The time of surrender or the effective date and hour of cancellation stated in the notice shall become the end of the Policy Period. Delivery of such written notice either by the Named Insured or by the Company shall be equivalent to mailing. If the Named Insured cancels the Policy, earned premium shall be computed in accordance with the customary short rate table and procedure after applying the minimum premium earned based on the following schedule: Inception Date: Minimum Premium Earned 25% End of Year One: Minimum Premium Earned 100% If the Company cancels, earned premium shall be computed pro rata after applying the minimum premium earned based on the schedule above. Premium adjustment may be either at the time cancellation is effected or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium is not a condition of cancellation. Section VI. DEFINITIONS, Paragraph A. Bodily Injury, Paragraph B. Claim, Paragraph F. Covered Operations, Paragraph K. Insured, Paragraph U. Policy Period, Paragraph V. Pollution Conditions, Paragraph W. Property Damage, Paragraph Y. Restoration Costs, and Paragraph Z. Transportation are deleted in their entirety and replaced with the following: A. Bodily Injury means: 1. physical injury, sickness or disease sustained by any person, including death resulting therefrom. and solely with respect to this item A.1, any accompanying medical monitoring; or 2. mental anguish, emotional distress, or shock. B. Claim means a written demand received by an Insured seeking a remedy and alleging liability or responsibility on the part of an Insured for Bodily Injury, Property Damage or Environmental Damage. F. Covered Operations means those activities performed on behalf of the first Named Insured indicated in Item 1. of the Declarations Page at the Specified Project scheduled above on the first page of this Endorsement. Covered Operations includes Completed Operations and Transportation. K. Insured means: 1. The first Named Insured, (the owner) but solely as respects to liability arising out of the Covered Operations performed on behalf of the first Named Insured indicated in Item 1. of the Declaration Page of this Policy at the specified project scheduled on the first page of this Endorsement; 2. Any person who is or was a director, officer, partner, member or employee of the first Named Insured indicated in Item 1. of the Declarations Page of this Policy while acting within the scope of his or her duties as such, but solely as respects liability arising out of the Covered Operations performed by or on behalf of such first Named Insured at the specified project scheduled on the first page of this Endorsement; 109168 (9/11) PAGE 4 OF 6 C 15025 ENDORSEMENT N'O:., CONTINUED ua�l.a 3. Al contractors and sub - contractors at all bers'butuonly with respect to Covered Operations performed on behalf of the first Named Insured indicatedJ'n I&m;,1. of the Declarations Page of this Policy at the specified project scheduled on the first page of this Et►doisement; 4. Joint ventures in which the Insured is named as a4, venturer but only with respect to Covered Operations performed on behalf of the first Named Insured indicated in Item 1. of the Declarations Page of this Policy at the specified project scheduled on the first page of this Endorsement; 5. A Limited Liability Company in which the Insured is a member and all members but only with respect to Covered Operations performed on behalf of the first Named Insured indicated in Item 1. of the Declarations Page of this Policy at the specified project scheduled on the first page of this Endorsement, and 6. Property owners, managers, project lenders or financiers of the specified project scheduled on the first page of this Endorsement that the first Named Insured indicated in Item 1. of the Declarations Page is required under a written contract to add as additional Insured(s) to this Policy, but only with respects to Loss arising out of Covered Operations performed by or on behalf of the first Named Insured as indicated in Item 1. of the Declarations Page of this Policy. This Policy does not apply to Bodily Injury, Property Damage or Environmental Damage arising out of the sole negligence or willful misconduct of the Insured(s) as defined in subparagraphs 1., 2. and 6. above. As respects to the coverage afforded the Insured(s), this insurance is primary and non contributory, and our obligations are not affected by any other insurance carried by such Insureds) whether primary, excess, contingent, or on any basis. U. Policy Period means: 1. Except as set forth in Paragraph 2. below, the period set forth in Item 2. of the Declarations, or any shorter period arising as a result of cancellation of this Policy; and 2. In the event that construction has been delayed at the Scheduled Project and if requested in writing by the first Named Insured indicated in Item 1. of the Declarations Page, an additional six (6) months may be added to the originally noted Policy Period at no additional premium, subject to increases in construction values not to exceed 10% of the original construction values that were reported in the application. This Policy Period extension request is subject to the construction delay having been within the original scope of work and not due to additional work being added. 3. Solely with respect to Completed Operations, the period beginning on the Inception Date and ending on 4130/2020 (12:01 AM standard time at the address of the Named Insured in Item 1. of the Declarations). V. Pollution Conditions means the discharge, dispersal, release or'escape of any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, low -level radioactive material, electromagnetic fields, medical waste and waste materials into or upon land, or any structure on land, the atmosphere or any watercourse or body of water, provided such conditions are not naturally present in the environment in the concentration or amounts discovered, unless such natural condition(s) are released or dispersed as a result of the performance of Covered Operations, and such release or dispersal is unexpected and unintended from the standpoint of the Insured. Pollution Conditions shall include Microbial Matter and Legionella pneumophila in any structure on land and the atmosphere contained within that structure. Pollution Conditions shall also include the discharge, dispersal, release or escape of silt or sedimentation that originated at and migrated from a job site. 109168 (9/11) PAGE 5 OF 6 C15025 ENDORSEMENTNO. CONTINUED .x , W. Property Damage means: psi ��sp 1. Physical injury to or destruction of (a) tangible propety of,parties other than the Insured, including the resulting loss of use and diminution in value there f'_ jb) :tangible property of the first Named Insured identified in Item 1. of the Declarations Page including tfe resulting loss of use thereof; 2. Loss of use, but not diminution in value, of (a) tangible property of parties other than the Insured or (b) tangible property of the first Named Insured identified in Item 1. of the Declarations Page, that has not been physically injured or destroyed; or 3. Natural Resource Damage. Property Damage does not include Environmental Damage. Y. Restoration Costs means reasonable and necessary costs incurred by the Insured with the Company's written consent, which consent shall not be unreasonably withheld or delayed, to repair, replace or restore real or personal property to substantially the same condition it was in prior to being damaged during work performed in the course of incurring Clean -Up Costs arising from Environmental Damage. Restoration Costs shall not include costs associated with improvements or betterments, except to the extent that such improvements or betterments of the damaged property entail the use of materials which are environmentally preferable to those materials which comprised the damaged property. Such environmentally preferable material must be certified as such by an applicable independent certifying body, Mere such certification is available, or, in the absence of such certification, based on the judgment of the Company in its sole discretion. Z. Transportation means the use of a Motor Vehicle, aircraft, rolling stock, or watercraft while in due course of transit from the time of movement from its point of origin to its final destination, including loading or unloading onto or from the Motor Vehicle, aircraft, rolling stock or watercraft. 6. Solely with respect to Pollution Conditions arising out of or associated with Microbial Matter or Legionella pneumophila, Section 1. INSURING AGREEMENTS, 1. COVERAGES, COVERAGE B - EMERGENCY RESPONSE COSTS is deleted in its entirety. 7. Solely with respect to Pollution Conditions arising out of or associated with Microbial Matter, Section VI. DEFINITIONS, Paragraph H. Environmental Damage is deleted in its entirety and replaced with the following: H. Environmental Damage means physical damage to buildings or other structures caused by Pollution Conditions and giving rise to Clean -Up Costs. Environmental Damage does not include Property Damage. All other terms, conditions, and exclusions shall remain the same. AUTHORIZED REPRESENTATIVE or countersignature (in states where applicable) 109168 (9/11) PAGE 6 OF 6 C15025