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Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 1 of 14

UNITED STATES DISTRICT COURT


SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION

ACE AMERICAN INSURANCE s


COMPANY $
s
Plaintiff, s
v. $ Civil Action No.
s
M-I, L.L.C. $
$
Defendant. $

ACE AMERICAN INSURANCE COMPANY'S ORIGINAL


COMPLAINT FOR DECLARATORY JUDGMENT

TO THE HONORABLE I-]NITED STATES DISTRICT JUDGE:

This Complaint for Declaratory Judgment is filed by ACE American Insurance Company

("ACE") against M-I, L.L.C. ("M-I") pursuant to the Declaratory Judgment Act, 28 U.S.C. $

2201 and Rule 57 of the Federal Rules of Civil Procedure to determine an actual case or

controversy involving a declaration of rights and obligations under an insurance policy issued by

ACE to M-I.

I. INrRonucrroN

1 .1 This dispute arises out of the Macondo Discovery Well blowout in the Mississippi

Canyon Block 252 and ensuing fire, explosion and sinking of the vessel known as the Deepwater

Horízon on April 20,2010 (the "Deepwater Horizon Incident").

1.2 At the time of the Deepwater Honzon Incident, M-I was performing mud

engineering activities within the Macondo Discovery V/ell pursuant to a written contract between

it and BP Exploration and Production, Inc. ("8P").

1.3 M-I contends that it has incurred, and may continue to incur in the future,
significant liabilities in connection with the Deepwater Honzon Incident. These liabilities
Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 2 of 14

include, but are not limited to, liabilities for damages to individuals and businesses whose

persons or properties have been or will be impacted by the Deepwater Horizon lncident.

1.4 M-I is pursuing or intends to pursue coverage for the claims and losses arising out

of the Deepwater Horizon lncident under ACE Policy No. HDO G 24940354 (Ihe "ACE

Policy'').

1.5 ACE is seeking a judgment declaring that no coverage exists under the ACE

Policy for any claims against M-I arising out of the Deepwater Horizon Incident.

il. PtRrms

2.1 Plaintiff ACE is a Pennsylvania corporation with its headquarters at 436 Walnut

St., Philadelphia, PA 19106-3703.

2.2 Defendant M-I is a Delaware limited liability company with its principal place of
business in Houston, Harris County, Texas. It can be served through its registered agent: Capitol

Corporate Services, Inc., 800 Brazos, Suite 400, Austin, Texas 78701.

III. JurusorcrroNaNoVnNun

3.1 This Court has jurisdiction of this controversy under 28 U.S.C. g 1332 (a) in that

the dispute is between citizens of different states and the amount in controversy exceeds the sum

or value of $75,000.00 exclusive of interest and costs.

3.2 Venue is proper in this district pursuant to 28 U.S.C. $ 1391 because this is a

judicial district in which the Defendant is subject to personal jurisdiction and because the policy

of insurance was issued and delivered to M-I in Houston, Texas

IV. BacxcnouNo

4.1 BP retained the mud engineering services of M-I to be performed in accordance

with a written contract entitled "Contract for Gulf of Mexico Strategic Performance Unit
Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 3 of 14

Offshore Well Services between BP Exploration and Production, Inc. and M-I, L.L.C. (the

"BP/M-I Agreement").

4.2 The services under the BP/M-I Agreement included, among other things, that M-I

devise and prepare a mud program for the Macondo Discovery V/ell.

4.3 On or about April 19, 2010, the Macondo Discovery Well had reached a depth of

13,293 feet below the sea floor.

4.4 A blowout commenced on April 20,2010.

4.5 Gas escaped from the subsea well and into the riser. The gas shot water out of the

riser and above the crown of the derrick. The gas subsequently ignited and exploded resulting in

the Deepw ater Honzon Incident.

4.6 As a result of the Deepwater Horizon lncident, numerous lawsuits have been filed

against M-I alleging that it failed to maintain the appropriate drilling mud weight before and

during the drilling operation of the Macondo Discovery Well. These lawsuits include, but are not

limited to, allegations of liabilities for damages to individuals and businesses (collectively the

"Complaints").

V. Tsn ACE Por.rcv

5. I The ACE Policy issued to M-I has a policy period of April | , 2010 through April

I,2071. The coverage afforded under the ACE Policy is subject to certain terms, conditions,

limitations, and exclusions.

A. The Watercraft Exclusion

5.2 The ACE Policy contains an Aircraft, Auto Or Watercraft Exclusion (the

"Watercraft Exclusion") that operates to exclude coverage for all claims arising out of the

Deepwater Horizon Incident.


Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 4 of 14

5.3 The Complaints asserted against M-I contain allegations that the Deepwater

Horizon was a vessel used and chartered or operated by BP.

5.4 BP is an additional insured under the ACE Policy by virrue of the terms,

conditions, and limitations contained in the BP/M-I Agreement and in accordance with the terms

and conditions of the ACE Policy.

5.5 Pursuant to Articles 20.I and 20.2 of the BP/M-I Agreement, M-I agreed to

purchase certain types of insurance coverage, including Commercial General Liability Insurance.

Article 20.1 of the BP/M-I Agreement also provides:

All insurance other than Employers Liability


Insurance/Workmen's Compensation only, shall to the extent of
the liabilities assumed and indemnities offered by Contractor [M-I]
under the Contract, include Company [BP], co-venturers and its
and their respective affiliates as additional insured.

5.6 The ACE Policy provides Commercial General Liability Insurance, and the

contractual requirement under the BP/M-I Agreement for extension of additional insured status

for BP is addressed in Endorsement #18. See Ex. A Endorsement #18 of the ACE Policy is

entitled "Additional Insured - Designated Person or Organization" and provides as follows:

SCHEDULE
Name of Additional Insured Person(s) Or Organization(s)
Any person or organization whom you [M-I] have agreed to
include as an additional insured under a written contract, provided
such contract was executed prior to the date of loss.

Section II - Who Is An Insured is amended to include as an


additional insured the person(s) or organization(s) shown in the
Schedule, but only with respect to liability for "bodily injury",
"property damage" or "personal and advertising injury" caused, in
whole or in part, by your acts or omissions or the acts or omissions
of those acting on your behalf . . . [in] the performance of your
ongoing operations . . . .

SeeEx. A, Endorsement #18.


Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 5 of 14

5.7 Because BP is an additional insured under the ACE Policy, the Watercraft

Exclusion operates to exclude coverage under the ACE Policy for all losses arising out of the

Deepwater Horizon Incident. The Watercraft Exclusion provides, in pertinent part, as follows:

This insurance does not apply to:

"Bodily injury" or "property damage" arising out of the ownership,


maintenance, use or entrustment to others of any . . watercraft
owned or operated by or rented or loaned to any insured. Use
includes operation and "loading and unloading."

This exclusion applies even if the claims against an)¡ insured allege
negligence or other wrongdoing in the supervision, hiring,
employrnent, training or monitoring of others by that insured, if the
"occurrence" which caused the "bodily injury" or "property
damage" involved the ownership, maintenance, use or entrustment
to others of any . .watercraft that is owned or operated by or
rented or loaned to an)¡ insured.

This exclusion does not apply to:

(1)

(2) A watercraft you do not own that is:

(a) Less than 50 feet long; and

(b) Not being used to caffy persons or property for a charge;

(3)

(4) Liability assumed under any "insured contract" for the


ownership, maintenance or use of . . . watercraft; or

(s)

Ex. A at Exclusion G. in "2. Exclusions" of Section l-Coverages, Coverage A Bodily Injury and

Property Damage Liability as amended by Endorsement #13 (emphasis added).

5.8 The Watercraft Exclusion references the phrase "any insured" under the ACE

Policy, which term encompasses an additional insured.


Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 6 of 14

5.9 Thus, if any insured meets the parameters of the Watercraft Exclusion, it will
operate to exclude coverage for all insureds under the ACE Policy.

5.10 As noted above, BP qualifies as an additional insured under the ACE Policy.

5.11 BP was leasing and using the Deepwater Horizon under a charter agreement with

Transocean at the time of the Deepwater Horizon Incident.

5.12 The Deepwater Horizon was 396 feet long and 256 feet wide.

5.13 The Watercraft Exclusion operates to exclude coverage for all insureds under the

ACE Policy.

B. The Professional Liability Exclusion

5.14 The ACE Policy also contains exclusions entitled "Professional Liability

Exclusion Endorsement" in Endorsement #15 and "Exclusion - Engineers, Architects or

Surveyors Professional Liability'' in Endorsement # 27. These exclusions (collectively the


"Professional Services Exclusions") also operate to exclude coverage for all claims arising out of

the Deepwater Horizon Incident .

5.15 Endorsement #15 provides that "[t]his insurance does not apply to any damages

arising out of any professional services, including, but not limited to, any accounting,

architectural, or engineering service." Id. at ACE Policy.

5.16 Endorsement#27 provides as follows:

This insurance does not apply to "bodily injury", "property damage" or


"personal and advertising injury" arising out of the rendering of or failure
to render any professional services by you or any engineer, architect or
surveyor who is either employed by you or performing work on your
behalf in such capacity.

Professional services include :

1. The preparing, approving, or failing to prepare or approve,


maps, shop drawings, opinions, reports, surveys, field
orders, change orders or drawings and specifications; and
Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 7 of 14

2. Supervisory, inspection, architectural orengineeringactivities.

5.11 M-I was engaged by BP to provide mud engineering activities and services.

5.18 The mud engineering activities and services are engineering activities and
services that trigger application of the Professional Services Exclusions as a result of the

Deepwater Horizon Incident, thus abrogating coverage under the ACE Policy.

C. The Duties of the Insured Condition

5.19 The ACE Policy also contains a condition entitled "Duties in the Event of
Occurrence, Offense, Claim or Suit" (the "Duties of the Insured Condition") that may operate to

exclude coverage for all claims arising out of the Deepwater Horizon lncident. Ex. A, ACE

Policy at Condition2.d., "Duties in the Event of Occurrence, Offense, Claim or Suit," Section IV

- Commercial General Liability Conditions.

5.20 The Deepwater Horizon Incident involved a blowout, fire, explosion, or an

uncontrolled well condition.

5.21 The Deepwater Honzon Incident has also resulted in pollution from the reservoir

associated with the Macondo Discovery Well.

5.22 As noted above, the BP/M-I Agreement expressly provides that BP will assume

responsibility for liability arising out of such an event:

Notwithstanding the provisions of clause 19.3(b) and except as


provided by clause 19.1(a), clause 19.1(b) and clause 19.4(b) Company
[BP] shall save, indemnifu, release, defend and hold harmless
Contractor Group [M-I and others] from and against any claim of
whatsoever nature arising from pollution andlor contamination
including without limitation such pollution or contamination from the
reservoir or from the property or equipment of Company Group IBP
and others] arising from the property or equipment of Company Group
IBP and others] arising from or related to the performance of the
Contract.
Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 8 of 14

Subject to clauses 19.1 and 19.4(b), but notwithstanding anything


contained elsewhere in the Contract to the contrary, Company IBP]
shall save, indemnifu, release, defend and hold harmless Contractor
Group [M-I and others] against all claims, losses, damages, costs
(including legal costs) expenses and liabilities resulting from:

(a) loss or damage to any well or hole (including the cost to re-
drill);
(b) blowout, fire, explosion, cratering, or any uncontrolled well
condition (including the costs to control a wild well and the
removal of debris);
(c) damage to any reservoir, aquifer, geological formation or
strata or the loss of oil or gas therefrom;
(d) ::l"t*o"nd
Articles ß.a@) and 19.6 of the BP/M-I Agreement.

5.23 As a result of Articles T9.a@) and 19.6 of the BP/M-I Agreement, M-I is entitled

to indemnity from BP.

5.24 In spite of this indemnity M-I has not tendered these claims to BP for
indemnification as contemplated by Articles 19.a@) and 19.6 of the BP/M-I Agreement. This

unilateral decision by M-I constitutes a voluntary assumption of an obligation. Furthermore, if


M-I has elected, or will elect, to incur defense costs without first attempting to seek

indemnification from BP as contemplated by Articles 19.a@) and 19.6 of the BP/M-I Agreement,

such an election constitutes a voluntary payrnent of these costs. The ACE Policy prohibits any

voluntary assumption of an obligation by M-I, as well as any voluntary pa).rnents, if any, that

have been or may be made by M-I.

5.25 The ACE Policy contains a Condition which provides as follows:

No insured will, except at that insured's own cost, voluntarily


make a payment, assume any obligation, or incur any expense,
other than for first aid, without our consent.

Ex. A, ACE Policy at Condition 2.d., "Duties in the Event of Occurrence, Offense, Claim or

Suit," Section IV - Commercial General Liability Conditions.


Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 9 of 14

5.26 ACE has not been asked to consent to, nor has it consented to, any assumption of

an obligation or to these payrnents; rather, ACE has encouraged M-I to tender these claims to

BP. As a result of M-I's unilateral decision declining to tender these claims to BP, M-I has

violated the Duties of the Insured Condition of the ACE Policy, and ACE has been prejudiced

thereby. Therefore, M-I's actions have obviated coverage under the ACE Policy.

D. The Pollution Exclusion

5.27 The ACE Policy also contains an exclusion entitled "Pollution Exclusion-

Combination Exception Time Element and Named Perils" found in Endorsement # 14 (the
"Pollution Exclusion").

5.28 The Pollution Exclusion provides that ACE has no duty to defend M-I against any

and all pollution claims arising out of the Deepwater Horizon Incident. Ex. A, Endorsement 14.

5.29 The last line of the Pollution Exclusion states: "[n]otwithstanding the foregoing,

we shall have no duty to defend any 'suit', claim or proceeding arising out of or in any way

related to 'pollution'." Id. The Pollution Exclusion defines the terms "Pollution" and

"Pollutants" as follows:

"Pollution" means the actual, alleged, or potential presence in or


introduction into the environment of any "pollutants", if such
"pollutants" have, or are alleged to have, the effect of making the
environment impure, harmful, or dangerous. Environment includes
any air, land, structure or the air therein, watercourse or water,
including underground water, and biota.

"Pollutants" means any solid, liquid, gaseous or thermal irritant or


contaminant, including smoke, vapor, soot, fumes, acids, alkalis,
chemicals, bacteria, virus, and waste.

Id.
Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 10 of 14

5.30 Crude oil, methane, and other discharges from the Macondo Discovery Well in

the Mississippi Canyon Block 252 fall within the definition of "pollutants" under the Pollution

Exclusion.1d.

5.31 The discharges are solid, liquid, or gaseous, and the substances discharged are

irritants or contaminants. The presence of these discharges in the "environment" - in the ocean
and atmosphere and on the seabed - makes the "environment impure, harmful or dangerous." Id.

5.32 The fact that these pollutants were discharged into the environment and have

made the environment "impure, harmful, or dangerous" establishes that their presence in or

introduction into the environment constitutes "pollution." Id.

5.33 Consequently, ACE has no duty to defend any lawsuit, claim or proceeding

arising out of or in any way related to the pollution from the Deepwater Horizon Incident.

5.34 In addition to the aforementioned language of the Pollution Exclusion, that

exclusion also contains the following provision:

Notwithstanding anything to the contrary in the foregoing paragraphs


Ithe exception] and regardless of the cause of the "pollution", this policy
shall not apply to:

l. loss of, damage to or loss of use of property directly or


indirectly resulting from subsurface operations of the
insured, andlor removal of, loss or damage to subsurface
oil, gas or other substance. . ..

(hereinafter, the "Subsurface Exclusion").

5.35 M-l's operations for the Macondo Discovery Well were subsurface in nature.

Accordingly, no coverage is afforded under the ACE Policy for any claims against M-I arising

out of the Deepwater lF,lnzon Incident for loss of, damage to or loss of use of any property

resulting from the subsurface operations of M-I, whether on or in proximity to the Deepwater

10
Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 11 of 14

Horizon vessel and Macondo Discovery Well or any property damage occurring away from the

Deepwater Horizon vessel and Macondo Discovery Well.

5.36 Further, the ACE Policy will not apply to any claims against M-I arising out of

the Deepw ater Hoizon Incident for any loss of, damage to or loss of use of property directly or

indirectly resulting from removal of, loss or damage to subsurface oil, gas or other substance.

5.37 The ACE Policy will therefore not respond to any property damage claims against

M-I arising out of the Deepwater Horizon Incident. Any coverage for such claims is barred by

application of the Pollution Exclusion.

E. The Medical Payments Exclusion

5.38 The ACE Policy does not afford any coverage for Coverage C Medical Payments.

See Ex. A at Endorsement #26, entitled, "Exclusion - Coverage C - Medical Payments." Thus,

in the event that M-I tenders such claims to ACE under the ACE Policy, ACE has no obligation

to pay these expenses under that policy.

VI. Dncr-IruroRY JUDGMENT

6.1 The allegations contained in Paragraphs 1.1-5.38 are incorporated by reference

herein.

6.2 On June 8, 2010, M-I presented ACE with correspondence regarding claims or

suits against M-I. This correspondence presents an actual and existing controversy between ACE

and M-I with respect to the existence and scope of any obligations of ACE in connection with

M-I's liabilities emanating from the Deepwater Horizon Incident. The ACE Policy, however,

does not respond to any claim or suit arising out of the Deepwater Horizon Incident.

6.3 Pursuant to the Declaratory Judgment Act,28 U.S.C. 5 2201-2202, ACE seeks a

judicial declaration of its rights and duties to M-I, if any, under the ACE Policy in connection

with M-I's liabilities related to the Deepwater Horizon Incident. The Court's declaration will
11
Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 12 of 14

provide the parties with certainty with respect to their rights and obligations under the ACE

policy, and therefore will serve the interests ofjustice.

6.4 ACE hereby seeks the following declarations:

A. The Watercraft Exclusion contained in the ACE Policy operates to


exclude coverage under the ACE Policy for all losses claimed
against M-I arising out of the Deepwater Horizon Incident
because:

1. BP and its affiliates are additional insureds under


the ACE Policy; and

2. The Deepwater Horizon was a vessel, and it was


used, operated, and rented by a BP affiliate;

B. The Professional Liability Exclusions contained in Endorsements


#15 and#21 of the ACE Policy operate to exclude coverage for all
claims against M-I arising out of the Deepwater Horizon Incident
because, at all material times of the Deepwater Horizon lncident,
M-I was engaged in performing professional services for BP.
These professional services included, but were not limited to, the
following:

1. The preparing, approving, or failing to prepare


maps, shop drawings, opinions, reports, surveys,
field orders, change orders or drawings and
specifications; and

2. Supervisory, inspection, architectural or engineering


activities;

C. M-I has violated the "Duties in the Event of Occurrence, Offense,


Claim or Suit" condition of the ACE Policy thereby excluding
coverage for all claims arising out of the Deepwater Horizon
Incident because:

1. the Deepwater Horizon Incident involved a blowout, fire,


explosion, or an uncontrolled well condition;

2. The BP/M-I Agreement provides for defense and indemnity


in favor of M-I for claims arising out of;

a. any loss or damage to any well or hole


(including the cost to re-drill);

t2
Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 13 of 14

b. blowout, fire, explosion, cratering, or any


uncontrolled well condition (including the
costs to control a wild well and the removal
of debris); or

c. damage to any reservoir, aquifer, geological


formation or underground strata or the loss
of oil or gas therefrom; and

3. M-I has elected not to tender any and all claims arising
out of the Deepwater Horizon Incident to BP;

D. ACE has no duty to defend M-I against any and all pollution
claims arising out of or in any way related to the Deepwater
Horizon Incident;

E. The Pollution Exclusion contained in Endorsement #14 of the ACE


Policy operates to exclude coverage for all claims against M-I
arising out of the Deepwater Horizon Incident.

F. ACE has no obligation to pay any expenses under Coverage C -


Medical Palmrents of the ACE Policy;

G. ACE has no duty to defend any suit, claim or proceeding arising


out of or in any way related to M-I's liabilities concerning the
Deepwater Horizon Incident; and

H. M-I is not entitled to coverage under the ACE Policy for any of
M-I's liabilities related to the Deepwater Horizon Incident.

6.5 ACE pleads all other conditions, terms, limitations, definitions and exclusions

contained in the ACE Policy, which may be found to be applicable, and ACE specifically

reserves the right to amend this Complaint for Declaratory Judgment as additional andlor more

specific information becomes availabl e.

VII. ArroRNnys, Fnns

1.1 Pursuant to Chapter 38 and Section 37.009 of the Texas Civil Practice and

Remedies Code and 28 U.S.C. ç 2202, ACE requests recovery of its attomeys' fees and costs.

13
Case 4:10-cv-02931 Document 1 Filed in TXSD on 08/16/10 Page 14 of 14

VIII. Pn¡ræn

8.1 ACE American Insurance Company prays for declaratory judgment in its favor

confirming that it has no duty to defend and no duty to indemnify M-I, L.L.C. under Policy No.

HDO G 24940354 (the "ACE Policy") for any claims against M-I, L.L.C. arising out of the

Deepwater Horizon Incident, and further prays for all such other and further relief as equity and

the justice of this cause may require and permit.

Respectfully submitted,

BROWN SIMS, PC

By: /s/ Kenneth G. Engerrand


Kenneth G. Engerrand
Texas Bar No. 06619500
Southem District I.D. 207 8
Charles Clayton Conrad
Texas Bar No. 24040721
Southern District I.D. 37 220
Michael A. Varner
Texas Bar No. 20499425
Southern District I.D. 15111
1177 West Loop South, Tenth Floor
Houston, Texas 71 027 -9007
Tel:713.629-1580
Fax: 773.629-5021

ATTORNEYS FOR PLAINTIFF


ACE AMERICAN INSURANCE COMPANY

T4
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 1 of 57

EXHIBIT A
Part 1 of 2
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 2 of 57

1#
\ffi

SM

Policy lD: HDOG24940354

Effective Date: 0410112010


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 3 of 57

POLICY IDENTIFICATION

DECLARATIONS - GENERAL LIABILITY POLICY Page 4 e24940354

FORMSANDENDORSEMENTS (Pase 1 of 3)

FORMS AND ENDORSEMENTS ATTACHED TO THIS POLICY AT INCEPTION

SCHEDULE OF CO\/ERAGE FORMS

Ar,L20887 ACE Producer CompensaÈion Practices & Policies


rLPo010104 U.S. Treasury Department's Office of Foreign Assets
Control ("OFAC") Advisory Notice to Policyholders
rL00171198 Co¡nrnon Policy Conditions
cco0011207 Co¡mnercial General Liability Coverage Form
ATLAXOT An Important Notice To Our Alaska Policyholders
AJ,I,22368 Colorado Fraud Statement
AIL5X45 Questions About Your Insurance?
ÀtI,2u78b Notice To AII Oklahoma Policyholders
AII5S54 Notice To Pennsylvania Property and Casualty fnsurance
AI,L4Y3Od Information and Complaints (TX) :.:

Af.L11559d Risk Control Services for Eéxas':1,:Policyholders


':

SCHEDUTE OF FORTÍS AìrD ENDoaSPÌ'EDITS


:::.: : ::::: .:::

Description .'

Schedule of Named Insureds'


Reimbursement ôf Deductible Endorsement
Additional Inquied - Employees Fellow Employees - Bodily
Injury onJ-y:, , ,

LD6X26 Alienated:, Premises


LD2G44a Amendment:: :of Conditions
LD2t732 Construction Project(s) General Aggregate I,imit
LDg863A Employee Benefits Líability Endorsement
LD3R16 Excl.usion - Asbestos
LD8R38 Exclusion Extremely Lor* Frequency Electromagnetic Fields
(ELF-EMr)
LD4S35 Exclusion - Lead
LD15284 I'ÍIBE Exclusion
IjDz0287 Non-Contributory Endorsement For Additional Insureds
LDsT98 Nonowned Ìfatercraft Exception
LD12988a Poll-ution Exclusion - Combination Exception Time Element
and Named Perils
rDo846 Professional Liability Exclusion Endorsement

the coverage form(s) and endorsements, if any, listed above and attached, completes this policy.

AUTHORIZED AGENT:

LD-2448a (Ed. 3/87) Printed in U.S.A. AA 067266a


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 4 of 57

SCHEDULE OF FORMS AÀID ENDORSEMENTS

Namedlnsured M-I, L.L.C. Endorsement Number


(Page 2 of 3)
Policy Symbol Policy Number Policy Period Effective Date of Endorsement
HDO e24940354 04/OL/20L0 to oAloLl2oLL o4/oL/20LO
Issued By (Name oflnsurance Company)
ACE American Insurance Company
lnsert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.

Endt. No. Form No. Description


16. LD2l733 Radioactive Matter Exclusion
L7. 4IL18057- Notification of Premj-um Adjustment
0305
18. CG2O26O7O4 Additional Insured - Designated Person or OrganizaÈior¡
19. CG20100704 AddiÈional Insured - Owners, Lessees or Contractors -
Scheduled Person or Organization
20. CG20150704 Additional Insured - Vendors
21. CG21700108 Cap on Losses From Certified Acts of: Temorism
22- CG24L7LOO1 Contractual Liability - Railroads :

23- CG'O224LO93 Earlier Notice Of CancellaÈion Provided By Us


24- CÉ2L47L2O7 Enplo]¡ment-Related Practices Exclusion
25. Cc21?30108 Exclusion of Certified Acts of Terrorism
26. CG21351001 Exclusion - Coverage C - Medica1 Pa!'nents
27. CG2243O798 Exclusion - Engineers, Architects or Surveyors Professional
Liability
28. CG2233O798 Exclusion - Testing or Consul-ting E*ors and Omissions
29. CÈ2L67L2O4 Eungi or Bacteria Exélusion
30. CG2274LOO1 Limited Contractuâl LiabiJ-ity Coverage For Personal and
Advertising Injury
31. CG21960305 Silica or Silica-Related Dust Exclusion
32. CG24040509 ?laiver of Transfer of Rights of Recovery Àgainst Others To
Us
33. IÍ,O985O1O8 Discloåure Pursuant to Terrorism Risk Insurance Act
34. 4LL21101 Tradér.or Ecónomic Sanctions Endorsement
35. It00210908 Nuc-lear:Energy Liability Exclusion Endorsement (Broad Form)
36. CG21300509 Alaska Recording and Distribution of Material or Information
in Violation of Law Exclusion
37. Cc26701001 Alaska Changes - Definition of Metatag
38. Cc26970306 A1aska Vüar tiabiliÈy Exclusion
39. IL01210603 Alaska Changes - AÈtorney's Fees
40. IL02800908 Alaska Changes - CancellaÈion and Nonrenewal
4t. CG32340105 California Changes
42. IL02700908 California Changes - Cancellation and Nonrenewal
43- IL02280907 Colorado Changes - Cancellation and Nonrenewal
44. TI-02620908 Georgia Changes - Cancellatj-on and Nonrenewal
45. CG01091185 Kansas And Oklahoma Changes - Transfer of Rights
46. IL02610907 Kansas Changes - Cancellation And Nonrenewal

Authorized
cc-lE15 Ptd. h u.s.A.
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 5 of 57

SCITEDULE OF FORMS AI{D ENDORSEMENTS

Namedlnsured M-I, L.L.C. Endorsement Number


(Page 3 of 3)
Policy Symbol I Policy Number Policy Period Effective Date of Endorsement
HDO I eZ¿g¿OgSA o4/0t/20L0 to O4/0L/2OLL 04/0L/20L0
Issued By (Name oflnsurance Company)
ÀCE American Insurance Company
policy is to be completed only when this endorsement is issued subsequent to the preparation of the policy

Endt. No. Form No. Description


47. IL02630908 Kentucky Changes - Cancellation and Nonrenevral
48. Cc01181204 Louisiana Changes - Legal_ Action Against. Us
49. Cc01250303 Louisiana Changes - Insuring Àgreernent
50. CG26841204 Louisiana Changes - Transfer of Rights of Recovery Against
Others To Us Condition
51. II,O27709OB Loui-siana Changes - Cancellation and Nonrenewal
52. CG01340803 Missouri Chançfes - Pollution Exclusion '::, ,,,,',,
53. Cc26250405 Missouri Changes - Guaranty Association
54. CG265OL298 Missouri Changes - Medical payments::,,.,.
55. IL02740908 Missouri Changes - Cancellation,,ànd:¡Nônrenewal
56. IL02820908 Mississippi Changes - Cancellation and Nonrenewal
57. Cc26611001 Montana Changes - Medical palznents
58. IL016?0908 Montana Changes - Conformity Ífith Statutes
59. IL02430907 Montana Changes
60. ILO29809OB New Mexico Changes - Cancellation and Nonrenewal
61. IL01150110 Nevada Changes - Do¡nestic,partnership
62. IL02510907 Nevada Changes -:CaneeLLation and Nonrenetral
63. CG01091185 Kansas And Oklahoma Changes - Transfer of Rights
64. It02360907 Oklahoma Changes - Cancellation and. Nonrene¡ral
65. TLO2460907 PennsyJ-vania Changes - Cancellation and Nonrene!,ral
66. CG01030606 Texas Changes
67. CC1K11e Signatures

Authorized
CC-lEl5 Ptd. In U.S.A.
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 6 of 57

ACE fNA Privacy StaÈement


The ACE INA group of companies strongly believes in maintaining the privacy of information
we collect about individuals. We want you to understand how and why we use and disclose
the collected information. The following provides details of our practices and procedures for
protecting the security of nonpublic personal information that we have collected about
individuals. This privacy statement applies to policies underwritten by the ACE INA group
member companies listed below.

INFORMATION WE COLLECT

The information we collect will vary depending on the type of product or service individuals
seek or purchase, and may include: ' ,",i

. lnformation we receive from individuals, such as their name,i "address, age, phone
number, social security number, assets, income, or beneficiaries;
. lnformation about individuals' transactions with us, with our affiliates, or with others,
such as policy coverage, premium, payment history, motor vehicle records; and
. lnformation we receive from a consumer reporting agency, such as a credit history.

INFORMATION WE DISCLOSE

We do not disclose any personal information::to.:anyone except as is necessary in order to


provide our products or services to a person, or otherwise as we are required or permitted by
law.

We may disclose any of the information that we collect to companies that perform marketing
services on our behalf or to other. fi¡rancial institutions with whom we have joint marketing
agreements.

THE RIGHT TO VERTFY THE ACCURACY OF TNFORMATTON WE COLLECT


,. ''t ''

Keeping information accurate and up to date is important to us. lndividuals may see and
correct their personal information that we collect except for information relating to a claim or a
criminal or civil proceeding.

CONFIDENTIALITY AND SECURITY

We restrict access to personal information to our employees, our affiliates' employees, or


others who need to know that information to service the account or in the course of conducting
our normal business operations. We maintain physical, electronic, and procedural safeguards
to protect personal information.

Pr-19668 (02/06) Page 1 of 2


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 7 of 57

CONTACTING US

lf you have any questions about this privacy statement or would like to learn more about how
we protect privacy, please write to us at ACE INA Customer Services, P.O. Box 1000, 436
Walnut Street, WA04F, Philadelphia, PA 19106. Please include the policy number on any
correspondence with us.

ACE American lnsurance Company


ACE American Lloyds lnsurance Company
ACE Fire Underwriters lnsurance Company
ACE lndemnity lnsurance Company
ACE lnsurance Company of lllinois
ACE lnsurance Company of Ohio
,aa*
ACE lnsurance Company of the Midwest
,

ACE Property and Casualty lnsurance Company


Atlantic Employers lnsurance Company
Bankers Standard Fire and Marine Company
Bankers Standard lnsurance Company
Century lndemnity Company
lllinois Union lnsurance Company
lndemnity lnsurance Company of North America
lnsurance Company of North America
Pacific Employers lnsurance Company
Westchester Fire lnsurance Company
Westchester Surplus Lines lnsurance Company
ESIS, lnc.

Pr-19668 (02/06) Page 2 of 2


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 8 of 57
ACE USA

General Liability Policy - Declarations

n Bankers Standard lnsurance Company n ACE Property and Casualty lnsurance Company
436 Walnut Street, PO Box 1000 436 Walnut Street, PO Box 1000
Philadelphia, Pennsylvania 19106-3703 Philadelphia, Pennsylvania 1 910G3703
tr Century lndemnity Company n lndemnity lnsurance Company of North America
436 Walnut Street, PO Box 1000 436 Walnut Street, PO Box 1000
Philadelphia, Pennsylvania 1910G3703 Philadelphia, Pennsylvania 191 0G3703
n ACE Fire Underwriters lnsurance Company n lnsurance Company of North America
436 Walnut Street, PO Box 1000 436 Walnut Street, PO Box 1000
Philadelphia, Pennsylvania 1 91 06-3703 Philadelphia, Pennsylvania 1 91 06-3703
x ACE American lnsurance Company
436 Walnut Street, PO Box 1000
! Pacific Employers lnsurance Company
436 Walnut Street, PO Box 1000
ia. Pennsvlvania 191 06-3703 ia, Pennsvlvania I 9106-3703

NAMED INSURED AND ADDRESS


M-r, L.L.C.
E
POLICY IDENTIFICATION
e24940354

5950 North Cou¡se Drive


Houston, lX 77072

POLICY IS Renewal OF HDo G2375LLL2

NAMED INSURED IS Limited Liability Corporation

BUSINESS OF INSURED Mining


POLICY PERIOD FROM o4/oL/20LO TO Ù4/0L/2OLL
12:01 A.M.,STANDARD TIME AT YOUR MAILING ADDRESS SHOWN ABOVE.
PREMIUM PAYMENT CONDITIONS
AUDIT PERIOD ' **,
:

PAYMENTFREQUENCY,, *1,,

**
:

PAYMENT SCHEDULE :
*Includes - KY Dornestic, Foreign and Alien Insurers $312;
liMnsurance Premium $11

TOTAL ADVANCE PREMIUM: $ *403,526

PREMIUMS RESULTING FROM AUDIT ARE NOT INCLUDED IN THE ABOVE.

LD-BE0Ob (8/96) Printed in the U.S.A.


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 9 of 57

POLICY IDENTIF
DECLARATIONS - GENERAL LIABILITY POLICY Page 2 e24940354

COVERAGES AND LIMITS OF INSURANCE

ln return for the payment of premium indicated above, we agree with you to provide the following
coverage(s) at the limits shown, subject to all of the terms and conditions of this policy.

Coverage Form: Limits of lnsurance

COMMERCIAL GENERAL LIABILIry


Each Occurrence Limit $ 2 , 000 ,000
Damage to Premises Rented to You Limit g 2 , 000 ,000
MedicalExpenseLimit(anyoneperSonororganization)$
Personal & Advertising lnjury Limit $ 2 ,000 ,000
General Aggregate Limit (other than Products/ $ 25,000,000
Completed Operations)
Products/Completed Operations Aggregate Limit $ 4,000, 000 ',,",,
$
$
$

$
$

SCHEDULE OF LOCATIONS

LOCATION NUMBER AND ADDRESS

LD-2F52b (Ed.10/01) Printed in U.S.A. 44067274a


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 10 of 57

POLICY IDENTIFICATION
LIABILITY POLICY e24940354
DECLARATIONS - GENERAL Page 3

SCHEDULE OF COVERAGES
COVERAGE PART:
Location Class Code/ Premium
Number Coverage Description
Classification Basis Exposure Rate Premium
10050
All AII Mining ** ** $ ** $ 403,576
**Refer to the NoÈice of Election

$ $

$ $

$ $

$ $

$ $

$ $

$ $

TOTAL PREMIUM FOR THIS COVERI\GE PART g 403,576

When used as a premium basis the following code definitions apply:

A- Area - Per 1,000 square feet of area O- Other


C- Total Cost - per $1,000 of total cost P- Payroll - per $1,000 of payroll
D- lfAny S- Gross Sales - per $1,000 of Gross Sales
E- Admissions - per 1,000 admissions U- Units
F- Flat Charge X- Each
J- Total Operating Expenditures - per $1,000 of Expenditures

LD-2F51a (Ed.3/87) Printed in U.S.A. 44067271a


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 11 of 57

POLICY NUMBER: HDO G24940354

ACE Producer Compensat¡on


Practices & Policies

ACE believes that policyholders should have access to information about ACE's practices and policies related to
the payment of compensation to brokers and independent agents. You can obtain that information by accessing
our website at http://www.aceoroducercompensation.com or by calling the following toll-free telephone number:
1-866-512-2862.

ALL-20887 (10/06)
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 12 of 57

POLICY NUMBER: HDO G24940354

lL P 001 01 04

U.S. TREASURY DEPARTMENT'S OFFICE OF FOREIGN


ASSETS CONTROL ("OFAC")
ADVISORY NOTIGE TO POLICYHOLDERS
No coverage is provided by this Policyholder Notice nor can it be construed to replace any provisions of your
policy. You should read your policy and review your Declarations page for complete information on the cover-
ages you are provided
This Notice provides information concerning possible impact on your insurance coverage due to directives issued
by OFAC. Please read this Notice carefully.
The Office of Foreign Assets Control (OFAC) administers and enforces sanctions policy, based on Presidential
declarations of "national emergency". OFAC has identified and listed numerous:
. Foreign agents;
o Front organizations;
'"o'
o Terrorists,
o Terrorist organizations; and
o Narcotics traffickers;
as "Specially Designated Nationals and Blocked Persons". This list can be located on the United States Treas-
ury's web site - http//uaaUfteaS.gOv/ofae
ln accordance with OFAC regulations, if it is determined that you or any other insured, or any person or entity
claiming the benefits of this insurance has violated U.S. sanctions law or is a Specially Designated National and
Blocked Person, as identified by OFAC, this insurance will be considered a blocked or frozen contract and all
provisions of this insurance are immediately subject to OFAC. When an insurance policy is considered to be
such a blocked or frozen contract, no payments nor premium refunds may be made without authorization from
OFAC. Other limitations on the premiums and payments also apply.

tL P 001 01 04 @ ISO Properties, lnc.,20O4 Page 1 of 1


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 13 of 57

POLICY NUMBER: HDO G24940354

lL 00 17 11 98

COMMON POLICY CONDITIONS


All Coverage Parts included in this policy are subject to the following conditions.

A. Cancellation b. Give you reports on the conditions we find;


L The first Named lnsured shown in the and
Declarations may cancel this policy by mailing c. Recommend changes.
or delivering to us advance written notice of 2. We are not obligated to make any inspections,
cancellation. surveys, reports or recommendations and any
2. We may cancel this policy by mailing or such actions we do undertake relate only to
delivering to the first Named lnsured written insurability and the premiums to be charged.
notice of cancellation at least: We do not make safety inspections. We do not
a. 10 days before the effective date of undertake to perform the duty of any person or
cancellation if we cancel for nonpayment of organization to provide for the health or safety
premium; or of workers or the public. And we do not warrant
that conditions:
b. 30 days before the effective date of
cancellation if we cancel for any other a. Are safe or healthful; or
reason. b. Comply wilh',laws, regulations, codes or
3. We will mail or deliver our notice to the first standards.
Named lnsured's last mailing address known to 3. Paragraphs 1. and 2. of this condition apply
us. not only to us,:bùt also to any rating, advisory,
4. Notice of cancellation will state the effective rate service or similar organization which
date of cancellation. The policy period will end makes inSúrance ínspections, surveys, reports
on that date.
. or recommendations.
5. lf this policy is cancelled, we will send the first 4'., Paragraph 2. of this condition does not apply
Named lnsured any premium refund due. lf we
:, to any inspections, surveys, reports or
cancel, the refund will be pro rata. lf the first
' recommendations we may make relative to
Named lnsured cancels, the refund may be certification, under state or municipal statutes,
less than pro rata. The cancellation will be ordinances or regulations, of boilers, pressure
effective even if we have not made or offered vessels or elevators.
a refund. E. Premiums
6. lf notice is mailed, proof of mailing will be The first Named lnsured shown in the
sufficient proof of notice. Declarations:
B. Changes 1. ls responsible for the payment of all premiums;
This policy contains all the agreements between and
you and us concerning the insurance afforded. 2. Will be the payee for any return premiums we
The first Named lnsured shown in the pay.
Declarations is authorized to make changes in the F. Transfer Of Your Rights And Duties Under
terms of this policy with our consent. This policy's This Policy
terms can be amended or waived only by
endorsement issued by us and made a part of this Your rights and duties under this policy may not
policy. be transferred without our written consent except
in the case of death of an individual named
C. Examination Of Your Books And Records insured.
We may examine and audit your books and lf you die, your rights and duties will be
records as they relate to this policy at any time transferred to your legal representative but only
during the policy period and up to three years while acting within the scope of duties as your
afterward. legal representative. Until your legal
D. lnspections And Surveys representative is appointed, anyone having proper
1. We have the right to: temporary custody of your property will have your
rights and duties but only with respect to that
a. Make inspections and surveys at any time; property.

tL 00 17 1l 98 Copyright, lnsurance Services Office, lnc., 1998 Pagel ofl tr


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 14 of 57

POLICY NUMBER: HDO G24940354

COMMERCIAL GENERAL LIABILITY


cG 00 01 12 07

COMMERCIAL GENERAL LIABILITY COVERAGE FORM


Various provisions in this policy restrict coverage. b. This insurance applies to "bodily injury" and
Read the entire policy carefully to determine rights, "property damage" only if:
duties and what is and is not covered. (1) The "bodily injury" or "property damage" is
Throughout this policy the words "you" and "yollr" caused by an "occurrence" that takes place
refer to the Named lnsured shown in the Declarations, in the "coverage territory";
and any other person or organization qualifying as a (2) The "bodily injury" or "property damage"
Named lnsured under this policy. The words "we", occurs during the policy period; and
"us" and "our" refer to the company providing this
insurance. (3) Prior to the policy period, no insured listed
under Paragraph 1. of Section ll - Who ls
The word "insured" means any person or organization An lnsured and no "employee" authorized
qualifying as such under Section ll - Who ls An ln- by you to give or ieceive notice of an "oc-
sured. currence" or clãim, knew that the "bodily in-
Other words and phrases that appear in quotation jury" or'property damage" had occurred, in
marks have special meaning. Refer to Section V - whole or in part.,lf such a listed insured or
Definitions. authorized "employee" knew, prior to the
SECTION I-
COVERAGES
policy period, that the "bodily injury" or
'lproperty'd¿mage" occurred, then any con-
COVERAGE A BODILY INJURY AND PROPERTY tinuation, change or resumption of such
DAMAGE LIABILITY , "bodily ihjury" or "property damage" during
L lnsuring Agreement or after the policy period will be deemed to
have been known prior to the policy period.
a. We will pay those sums that the insured be-
comes legally obligated to pay as damages c. "Bodily injury" or "property damage" which
because of "bodily injury" or "property damage" , occurs during the policy period and was not,
to which this insurance applies. We will have prior to the policy period, known to have oc-
the right and duty to defend the insured against curred by any insured listed under Paragraph
any "suit" seeking those damages. However, 1. of Section ll - Who ls An lnsured or any
we will have no duty to defend the insured "employee" authorized by you to give or re-
against any "suit" seeking damages for "bodily ceive notice of an "occurrence" or claim, in-
injury" or "property damage" to which this in- cludes any continuation, change or resumption
surance does not apply. We may, at our discre- of that "bodily injury" or "property damage" af-
tion, investigate any "occurrenc-è'! and settle ter the end of the policy period.
any claim or "suit" that may fesult. But: d. "Bodily injury" or "property damage" will be
(1) The amount we will pay :for damages is deemed to have been known to have occurred
limited as described in Section lll - Limits at the earliest time when any insured listed un-
Of lnsurance' and , '
der Paragraph 1. of Section ll -Who ls An ln-
sured or any "employee" authorized by you to
(2) Our right and duty to defend ends when we give or receive notice of an "occurrence" or
have used up the applicable limit of insur-
claim:
ance in the payment of judgments or set-
tlements under Coverages A or B or medi- (1) Reports all, or any part, of the "bodily injury"
cal expenses under Coverage G. or "property damage" to us or any other in-
surer;
No other obligation or liability to pay sums or
perform acts or services is covered unless ex- (2) Receives a written or verbal demand or
plicitly provided for under Supplementary Pay- claim for damages because of the "bodily
ments - Coverages A and B. injury" or "property damage"; or
(3) Becomes aware by any other means that
"bodily injury" or "property damage" has oc-
curred or has begun to occur.

cG 00 01 12 07 O ISO Properties, lnc., 2006 Page 1 of 16 tr


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 15 of 57

e. Damages because of "bodily injury" include c. Liquor Liability


damages claimed by any person or organiza- "Bodily injury" or "property damage" for which
tion for care, loss of services or death resulting any insured may be held liable by reason of:
at any time from the "bodily injury".
(1) Causing or contributing to the intoxication of
2. Exclusions any person;
This insurance does not apply to: (2) The furnishing of alcoholic beverages to a
a. Expected Or lntended lnjury person under the legal drinking age or un-
"Bodily injury" or "property damage" expected der the influence of alcohol; or
or intended from the standpoint of the insured. (3) Any statute, ordinance or regulation relating
This exclusion does not apply to "bodily injury" to the sale, gift, distribution or use of alco-
resulting from the use of reasonable force to holic beverages.
protect persons or property. This exclusion applies only if you are in the
b. Gontractual Liability business of manufacturing, distributing, selling,
"Bodily injury" or "property damage" for which serving or furnishing alcoholic beverages.
the insured is obligated to pay damages by d. Workers'Compensation And Similar Laws
reason of the assumption of liability in a con- Any obligation of the insured under a workers'
tract or agreement. This exclusion does not compensation, disability benefits or unem-
apply to liability for damages: ployment compensation law or any similar law.
(1) That the insured would have in the absence e. Employer's Liability
of the contract or agreement; or
"Bodily injury" to:
(2) Assumed in a contract or agreement that is
an "insured contract", provided the "bodily (1) Ñ "employéè' of the insured arising out of
injury" or "property damage" occurs subse- âhd in the course of:
quent to the execution of the contract or (a) Emþlôyment by the insured; or
agreement. Solely for the purposes of liabil-
ity assumed in an "insured contract", rea- ,, (b) Performing duties related to the conduct
' ,:., .' of the insured's business; or
sonable attorney fees and necessary litiga-
tion expenses incurred by or for a party (2) The spouse, child, parent, brother or sister
other than an insured are deemed to be
' ,1,"
of that "employee" as a consequence of
damages because of "bodily injury" o¡ Paragraph (1) above.
"property damage", provided : This exclusion applies whether the insured
(a) Liability to such party for, or for the cost may be liable as an employer or in any other
of, that party's defense has,,,'also been capacity and to any obligation to share dam-
assumed in the same "insured contract"; ages with or repay someone else who must
and pay damages because of the injury.
(b) Such attorney fees and ,litigation ex- This exclusion does not apply to liability as-
penses are for defense. of that party sumed by the insured under an "insured con-
against a civil or alternative dispute tract".
resolution proceeding in which damages
to which this insurance applies are al-
leged.

Page 2 of 16 @ ISO Propertíes, lnc., 2006 cG 00 01 1207 tr


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 16 of 57

f. Pollution (d) At or from any premises, site or location


(1) "Bodily injury" or "property damage" arising on which any insured or any contractors
out of the actual, alleged or threatened dis- or subcontractors working directly or in-
charge, dispersal, seepage, migratíon, re- directly on any insured's behalf are per-
lease or escape of "pollutants": forming operations if the "pollutants" are
brought on or to the premises, site or lo-
(a) At or from any premises, site or location cation in connection with such opera-
which is or was at any time owned or tions by such insured, contractor or sub-
occupied by, or rented or loaned to, any contractor. However, this subparagraph
insured. However, this subparagraph does not apply to:
does not apply to:
(i) "Bodily injury" or "property damage"
(i) "Bodily injury" if sustained within a arising out of the escape of fuels, lu-
building and caused by smoke, bricants or other operating fluids
fumes, vapor or soot produced by or which are needed to perform the
originating from equipment that is normal electrical, hydraulic or me-
used to heat, cool or dehumidify the chanical functions necessary for the
building, or equipment that is used to operation of "mobile equipment" or
heat water for personal use, by the its parts, if such fuels, lubricants or
building's occupants or their guests; other operating fluids escape from a
(ii) "Bodily injury" or "property damage" vehicle part designed to hold, store
for which you may be held liable, if or receive them. This exception does
you are a contractor and the owner not ãpply if: the "bodily injury" or
or lessee of such premises, site or "pro-perty damage" arises out of the
location has been added to your pol- intentional discharge, dispersal or re-
icy as an additional insured with re- lease of the fuels,lubricants or other
spect to your ongoing operations opèrating fluids, or if such fuels, lu-
performed for that additional insured bricants or other operating fluids are
at that premises, site or location and brought on or to the premises, site or
such premises, site or location is not location with the intent that they be
and never was owned or occupied discharged, dispersed or released as
by, or rented or loaned to, any in- part of the operations being per-
sured, other than that additional in- formed by such insured, contractor
sured; or or subcontractor;
(iii) "Bodily injury" or "property damage" (ii) "Bodily injury" or "property damage"
arising out of heat, smoke or fumes sustained within a buildíng and
from a "hostile fire"; caused by the release of gases,
(b) At or from any premises, sité or location fumes or vapors from materials
which is or was at any time used by or brought into that building in connec-
for any insured or others for the han- tion with operations being performed
dling, storage, disposal; processing or by you or on your behalf by a con-
treatment oJ waste; tractor or subcontractor; or
(c) Which are:,or were at any time trans-
(iii) "Bodily injury" or "property damage"
ported, handled, stored, treated, dis- arising out of heat, smoke or fumes
posed of, or processed as waste by or from a "hostile fire".
for: (e) At or from any premises, site or location
(i) Any insured; or on which any insured or any contractors
or subcontractors working directly or in-
(ii) Any person or organization for whom directly on any insured's behalf are per-
you may be legally responsible; or forming operations if the operations are
to test for, monitor, clean up, remove,
contain, treat, detoxify or neutralize, or
in any way respond to, or assess the ef-
fects of, "pollutants".

cG 00 01 12 07 O ISO Properties, lnc., 2006 Page 3 of 16 tr


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 17 of 57

(2) Any loss, cost or expense arising out of (5) "Bodily injury" or "property damage" arising
any: out of:
(a) Request, demand, order or statutory or (a) The operation of machinery or equip-
regulatory requirement that any insured ment that is attached to, or part of, a
or others test for, monitor, clean up, re- land vehicle that would qualify under the
move, contain, treat, detoxify or neutral- definition of "mobile equipment" if it were
ize, or in any way respond to, or assess not subject to a compulsory or financial
the effects of, "pollutants"; or responsibility law or other motor vehicle
(b) Claim or "suit" by or on behalf of a gov- insurance law in the state where it is li-
ernmental authority for damages be- censed or principally garaged; or
cause of testing for, monitoring, cleaning (b) the operation of any of the machinery or
up, removing, containing, treating, de- equipment listed in Paragraph Í.(21 or
toxifying or neutralizing, or in any way f.(3) of the definition of "mobile equip-
responding to, or assessing the effects ment".
of, "pollutants". h. Mobile Equipment
However, this paragraph does not apply to "Bodily injury" or "property damage" arising out
liability for damages because of "property of:
damage" that the insured would have in the
absence of such request, demand, order or (1) The transportation of "mobile equipment" by
statutory or regulatory requirement, or such an "auto" owned or operated by or rented or
claim or "suit" by or on behalf of a govern- loaned to qny insured; or
mental authority. (2) The use òf "mobilé equipment" in, or while
g. Aircraft, Auto Or Watercraft in.Þiáctice for, or while being prepared for,
any prearranged racing, speed, demolition,
"Bodily injury" or "property damage" arising out or:,s.tunting activity.
of the ownership, maintenance, use or
en-
trustment to others of any aircraft, "auto" or wa- i. War ":

tercraft owned or operated by or rented or "Bodily injury" or "property damage", however


loaned to any insured. Use includes operation caused, arising, directly or indirectly, out of:
and "loading or unloading". (l) War, including undeclared or civil war;
This exclusion applies even if the claims , (2) Warlike action by a military force, including
against any insured allege negligence or other action in hindering or defending against an
wrongdoing in the supervision, hiring, employ-
actual or expected attack, by any govern-
ment, training or monitoring of others by that
ment, sovereign or other authority using
insured, if the "occurrence" which caused the
military personnel or other agents; or
"bodily injury" or "property damage" involved
the ownership, maintenance, use or entrust- (3) lnsurrection, rebellion, revolution, usurped
ment to others of any aircraft, "auto" or water- power, or action taken by governmental au-
craft that is owned or operated by or:rented or thoriÇ in hindering or defending against any
loaned to any insured. : of these.
This exclusion does not apply to: j. Damage To Property
(1) A watercraft while ashore on premises you "Property damage" to:
own or rent; (1) Property you own, rent, or occupy, including
(2) A watercraft you do not own that is: any costs or expenses incurred by you, or
any other person, organization or entity, for
(a) Less than 26 feet long; and repaír, replacement, enhancement, restora-
(b) Not being used to carry persons or tion or maintenance of such property for
property for a charge; any reason, including prevention of injury to
(3) Parking an "auto" on, or on the ways next a person or damage to another's property;
to, premises you own or rent, provided the (2) Premises you sell, give away or abandon, if
"auto" is not owned by or rented or loaned the "property damage" arises out of any
to you or the insured; part of those premises;
(4) Liability assumed under any "insured con- (3) Property loaned to you;
tract" for the ownership, maintenance or (4) Personal property in the care, custody or
use of aircraft or watercraft; or
control of the insured;

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(5) That particular part of real property on This exclusion does not apply to the loss of use
which you or any contractors or subcontrac- of other property arising out of sudden and ac-
tors working directly or indirectly on your cidental physical injury to "your product" or
behalf are performing operations, if the "your work" after it has been put to its intended
"property damage" arises out of those op- use.
erations; or n. Recall Of Products, Work Or lmpaired
(6) That particular part of any property that Property
must be restored, repaired or replaced be-
cause "your work" was incorrectly per-
Damages claimed for any loss, cost or ex-
pense incurred by you or others for the loss of
formed on it. use, withdrawal, recall, inspection, repair, re-
Paragraphs (1), (3) and (4) of this exclusion do placement, adjustment, removal or disposal of:
not apply to "property damage" (other than (1) "Your product";
damage by fire)to premises, including the con-
tents of such premises, rented to you for a pe- (2) "Your work"; or
riod of 7 or fewer consecutive days. A separate (3) "lmpaired property";
limit of insurance applies to Damage To Prem-
if such product, work, or property is withdrawn
ises Rented To You as described in Section lll
or recalled from the market or from use by any
- Limits Of lnsurance. person or organization because of a known or
Paragraph (2) of this exclusion does not apply suspected defect, deflciêncy, inadequacy or
if the premises are "your work" and were never dangerous condition in it,
occupied, rented or held for rental by you.
o. Personal And Advertising lnjury
Paragraphs (3), (4), (5) and (6) of this exclu-
"Bodily injurytl arising oût of "personal and ad-
sion do not apply to liability assumed under a
vertising injury".
sidetrack agreement.
Paragraph (6) of this exclusion does not apply
p. Electronic Data
to "property damage" included in the "products- Damages arising out of the loss of, loss of use
completed operations hazard" . of, damage to, conuption of, inability to access,
or inability to manipulate electronic data.
k. Damage To Your Product ' As used in this exclusion, electronic data
"Propefty damage" to "your product" arising out
means information, facts or programs stored as
of it or any part of it.
or on, created or used on, or transmitted to or
l. Damage To Your Work from computer software, including systems and
"Property damage" to "your work" arising out of applications software, hard or floppy disks, CD-
it or any part of it and included in the "products- ROMS, tapes, drives, cells, data processing
completed operations hazard" . devices or any other media which are used
with electronically controlled equipment.
This exclusion does not apply if the damaged
work or the work out of which:,.the damage q. Distribution Of Material ln Violation Of
arises was performed on your behalf by a sub- Statutes
contractor. "Bodily injury" or "property damage" arising di-
m. Damage To lmpaired Proþerty Or Property rectly or indirectly out of any action or omission
Not Physically lnjured that violates or is alleged to violate:
"Property damage" to "impaired property" or (1) The Telephone Consumer Protection Act
property that has not been physically injured, (TCPA), including any amendment of or
arising out of: addition to such law; or
(1) A defect, deficíency, inadequacy or danger- (2) The CAN-SPAM Act of 2003, including any
ous condition in "your product" or "your amendment of or addition to such law; or
work"; or (3) Any statute, ordinance or regulation, other
(2) A delay or failure by you or anyone acting than the TCPA or CAN-SPAM Act of 2003,
on your behalf to perform a contract or that prohibits or limits the sending, transmit-
agreement in accordance with its terms. ting, communicating or distribution of mate-
rial or information.

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Exclusions c. through n. do not apply to damage c. Material Published PriorTo Policy Period
by fire to premises while rented to you or tempo-
"Personal and advertising injury" arising out of
rarily occupied by you with permission of the oral or written publication of material whose
owner. A separate limit of insurance applies to this
first publication took place before the beginning
coverage as described in Section lll - Limits Of
of the policy period.
lnsurance.
COVERAGE B PERSONAL AND ADVERTISING
d. CriminalActs
INJURY LIABILITY "Personal and advertising injury" arising out of
a criminal act committed by or at the direction
L lnsuring Agreement of the insured.
a. We will pay those sums that the ínsured be- e. Gontractual Liability
comes legally obligated to pay as damages
because of "personal and advertising injury" to "Personal and adveñising injury" for which the
which this insurance applies. We will have the insured has assumed liability in a contract or
right and duty to defend the insured against agreement. This exclusion does not apply to li-
any "suit" seeking those damages. However, ability for damages that the insured would have
we will have no duty to defend the insured in the absence of the contract or agreement.
against any "suit" seeking damages for "per- f. Breach Of Contract
sonal and advertising injury" to which this in-
"Personal and advertising injury" arising out of
surance does not apply. We may, at our discre-
tion, investigate any offense and settle any a breach of contiact, except an implied con-
claim or "suit" that may result. But:
tract to use another's advertising idea in your
"advertisement'i.
(1) The amount we will pay for damages is
limited as described in Section lll - Limits
g. Quality Or Performance Of Goods - Failure
To Conform To',:Statements
Of lnsurance; and
(2) "Personal and advertising injury" arising out of
Our right and duty to defend end when we
have used up the applicable limit of insur- the failuié of goods, products or services to
:conform with any statement of quality or per-
ance in the payment of judgments or set-
formance made in your "advertisement".
tlements under Coverages A or B or medi-
cal expenses under Coverage G. h. Wrông Description Of Prices
No other obligation or liability to pay sums or "Personal and advertising injury" arising out of
perform acts or services is covered unless ex- the wrong description of the price of goods,
plicitly provided for under Supplementary Pay- products or services stated in your "advertise-
ments - Coverages A and B. ment".
b. This insurance applies to "personal and adver- i. lnfringement Of Gopyright, Patent,
tising injury" caused by an offense arising out Trademark Or Trade Secret
of your business but only if thê offense was "Personal and advertising injury" arising out of
committed in the "coverage territory!'during the the infringement of copyright, patent, trade-
policy period mark, trade secret or other intellectual properly
2. Exclusions rights. Under this exclusion, such other intellec-
This insurance does not apply to:
tual property rights do not include the use of
another's advertising idea in your "advertise-
a. Knowing Violation Of Rights Of Another mgnt".
"Personal and advertising injury" caused by or However, this exclusion does not apply to in-
at the direction of the insured with the knowl- fringement, in your "advertisement", of copy-
edge that the act would violate the rights of an- right, trade dress or slogan.
other and would inflict "personal and advertis- j.
ing injury". lnsureds ln Media And lnternetType
Businesses
b. Material Published With Knowledge Of
"Personal and advertising injury" committed by
Falsity
an insured whose business is:
"Personal and advertising injury" arising out of
oral or written publication of material, if done by
(1) Advertising, broadcasting, publishing or
telecasting;
or at the direction of the insured with knowl-
edge of its falsity. (2) Designing or determining content of web-
sites for others; or

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(3) An lnternet search, access, content or (3) lnsurrection, rebellion, revolution, usurped
service provider. power, or action taken by governmental au-
However, this exclusion does not apply to thority in hindering or defending against any
Paragraphs 14.a., b. and c. of "personal and of these.
advertising injury" under the Definitions Sec- p. Distribution
Of Material ln Violation Of
tion. Statutes
For the purposes of this exclusion, the placing "Personal and advertising injury" arising di-
of frames, borders or links, or advertising, for rectly or indirectly out of any action or omission
you or others anywhere on the lnternet, is not that violates or is alleged to violate:
by itself, considered the business of advertis- (1) The Telephone Consumer Protection Act
ing, broadcasting, publishing or telecasting. (TCPA), including any amendment of or
k. Electronic Chatrooms Or Bulletin Boards addition to such law; or
"Personal and advertising injury" arising out of (2) The CAN-SPAM Act of 2003, including any
an electronic chatroom or bulletin board the in- amendment of or addition to such law; or
sured hosts, owns, or over which the insured (3) Any statute, ordinance or regulation, other
exercises control. than the TCPA or CAN-SPAM Act of 2003,
l. Unauthorized Use Of Another's Name Or that prohibits or limits the sending, transmit-
Product ting, communicating or distribution of mate-
"Personal and advertising injury" arising out of rial or information.
the unauthorized use of another's name or COVERAGE C MEDICAL PAYMENTS
product in your e-mail address, domain name l. lnsuring Agreement.
or metatag, or any other similar tactics to mis-
lead another's potential customers. a. We will pay medical expenses as described
below for "bodily injury" caused by an accident:
m. Pollution
(1) On prémises you own or rent;
"Personal and advertising injury" arising out of
the actual, alleged or threatened discharge, . (2) On ways next to premises you own or rent;
dispersal, seepage, migration, release or es- or
cape of "pollutants" at any time. (3) Because of your operations;
n. Pollution-Related provided that:
Any loss, cost or expense arising out of any: (a) The accident takes place in the "cover-
(1) Request, demand, order or statutory or age territory" and during the policy pe-
regulatory requirement that any insured or riod;
others test for, monitor, clean up; remòve, (b) The expenses are incurred and reported
contain, treat, detoxify or neutralize,,or in to us within one year of the date of the
any way respond to, or assess the effects accident; and
of, "pollutants"; or (c) The injured person submits to examina-
(2) Claim or suit by or on behalf of a govern- tion, at our expense, by physicians of
mental autho¡ity for damages because of our choice as often as we reasonably
testing for, monitoring, cleaning up, remov- require.
ing, containing,' treating, detoxifying or neu- b. We will make these payments regardless of
tralizing, or in any way responding to, or fault. These payments will not exceed the ap-
assessing the effects of, "pollutants". plicable limit of insurance. We will pay reason-
o. War able expenses for:
"Personal and advertising injury", however (1) First aid administered at the time of an
caused, arising, directly or indirectly, out of: accident;
(1) War, including undeclared or civil war; (2) Necessary medical, surgical, x+ay and
(2) Warlike action by a military force, including dental services, including prosthetic de-
action in hindering or defending against an vices; and
actual or expected attack, by any govern- (3) Necessary ambulance, hospital, profes-
ment, sovereign or other authority using sional nursing and funeral services.
military personnel or other agents; or

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2. Exclusions f. Prejudgment interest awarded against the


We will not pay expenses for "bodily injury":
insured on that part of the judgment we pay. lf
we make an offer to pay the applicable limit of
a. Any Insured insurance, we will not pay any prejudgment in-
To any insured, except "volunteer workers". terest based on that period of time after the of-
fer.
b. Hired Person
To a person hired to do work for or on behalf of
g. All interest on the full amount of any judgment
that accrues after entry of the judgment and
any insured or a tenant of any insured.
before we have paid, offered to pay, or depos-
c. lnjury On Normally Occupied Premises ited in court the part of the judgment that is
To a person injured on that part of premises within the applicable limit of insurance.
you own or rent that the person normally occu- These payments will not reduce the limits of insur-
pies. ance.
d. Workers Compensation And Similar Laws 2. lf we defend an insured against a "suit" and an
To a person, whether or not an "employee" of indemnitee of the insured is also named as a party
any insured, if benefits for the "bodily injury" to the "suit", we will defend that indemnitee if all of
are payable or must be provided under a work- the following conditions are met:
ers' compensation or disability benefits law or a a. The "suit" against the indemnitee seeks dam-
similar law. ages for which the insured has assumed the li-
e. Athletics Activities ability of the indemniteé:in a contract or agree-
ment that is an "insured contract";
To a person injured while practicing, instructing
or participating in any physical exercises or b. This : insurance applies to such liability as-
games, sports, or athletic contests. sumed by the inSúred;
f. Products-Completed Operations Hazard c. The obligaiion to defend, or the cost of the
defense,'of.,"that indemnitee, has also been as-
lncluded within the "products-completed opera- sumed by the insured in the same "insured
tions hazard". contract";
g. Coverage A Exclusions d.' Thê allegations in the "suit" and the information
Excluded under Coverage A. :,we know about the "occurrence" are such that
,' no conflict appears to exist between the inter-
SUPPLEMENTARY PAYMENTS - COVERAGES A
AND B ests of the insured and the interests of the in-
demnitee;
1. We will pay, with respect to any claim we investi-
gate or settle, or any "suit" against an insured we e. The indemnitee and the insured ask us to
defend: conduct and control the defense of that indem-
nitee against such "suit" and agree that we can
a. All expenses we incur. assign the same counsel to defend the insured
b. Up to $250 for cost of bail bonds ,required and the indemnitee; and
because of accidents or traffic law violations f. The indemnitee:
arising out of the use of any vehicle to which
the Bodily lnjury Liability Coverage applies. We (1) Agrees in writing to:
do not have to furnish these bonds. (a) Cooperate with us in the investigation,
c. The cost of bonds to :release attachments, but settlement or defense of the "suit";
only for bond amounts within the applicable (b) lmmediately send us copies of any
limit of insurance. We do not have to furnish demands, notices, summonses or legal
these bonds. papers received in connection with the
"suit";
d. All reasonable expenses incurred by the in-
sured at our request to assist us in the investi- (c) Notify any other insurer whose coverage
gation or defense of the claim or "suit", includ- is available to the indemnitee; and
ing actual loss of earnings up to $250 a day (d) Cooperate with us with respect to coor-
because of time off from work. dinating other applicable insurance
e. All court costs taxed against the insured in the available to the indemnitee; and
"suit". However, these payments do not include (2) Provides us with written authorization to:
attorneys' fees or attorneys' expenses taxed
against the insured. (a) Obtain records and other information
related to the "suit"; and

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(b) Conduct and control the defense of the 2. Each of the following is also an insured:
indemnitee in such "suit".
a. Your "volunteer workers" only while performing
So long as the above conditions are met, attor- duties related to the conduct of your business,
neys' fees incurred by us in the defense of that in- or your "employees", other than either your
demnitee, necessary litigation expenses incurred "executive officers" (if you are an organization
by us and necessary litigation expenses incurred other than a partnership, joint venture or limited
by the indemnitee at our request will be paid as liability company) or your managers (if you are
Supplementary Payments. Notwithstanding the a limited liability company), but onty for acts
provisions of Paragraph 2.b.(21of Section I - Cov- within the scope of their employment by you or
erage A - Bodily lnjury And Property Damage Li- while performing duties related to the conduct
ability, such payments will not be deemed to be of your business. However, none of these "em-
damages for "bodily injury" and "property damage" ployees" or "volunteer workers" are insureds
and will not reduce the limits of insurance. for:
Our obligation to defend an insured's indemnitee (1) "Bodily injury" or "personal and advertising
and to pay for attorneys'fees and necessary litiga- injury":
tion expenses as Supplementary Payments ends
when we have used up the applicable limit of in-
(a) To you, to your pertners or members (if
you are a partnership or joint venture),
surance in the payment of judgments or setfle-
ments or the conditions set forth above, or the to your members (if you are a limited li-
terms of the agreement described in Paragraph f. ability company), to a colemployee"
while in the course of his or l-ler em-
above, are no longer met.
ployment or performing duties related to
SECTION II - WHO IS AN INSURED the cohduct of your business, or to your
1. lf you are designated in the Declarations as: ' other 'fvolunteer workers" while perform-
ing duties ielated to the conduct of your
a. An individual, you and your spouse are insur- businêss;
eds, but only with respect to the conduct of a
business of which you are the sole owner. (b) To the spouse, child, parent, brother or
b. A partnership or joint venture, you are an in-
: sister of that co-"employee" or "volun-
sured. Your members, your partners, and their
, teer worker" as a consequence of Para-
graph (1Xa) above;
spouses are also insureds, but only with re-
spect to the conduct of your business. ', , (c) For which there is any obligation to
share damages with or repay someone
c. A limited liability company, you are an insured. else who must pay damages because of
Your members are also insureds, but only with the injury described in Paragraphs (1)(a)
respect to the conduct of your business. Your or (b) above; or
managers are insureds, but only with respect
to their duties as your managers. (d) Arising out of his or her providing or
failing to provide professional health
d. An organization other than a partnership, joint care services.
venture or limited liability company, you are an
insured. Your "executive officers" and directors (2) "Property damage" to property:
are insureds, but only with respect to their du- (a) Owned, occupied or used by,
ties as your officeis or dirêc-tors. Your stock- (b) Rented to, in the care, custody or con-
holders are also insureds, but only with respect
trol of, or over which physical control is
to their liability as stockholders.
being exercised for any purpose by
e. A trust, you are an insured. Your trustees are you, any of your "employees", "volunteer
also insureds, but only with respect to their du-
workers", any partner or member (if you are
ties as trustees.
a partnership or joint venture), or any mem-
ber (if you are a limited liability company).

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b. Any person (other than your "employee" or 3. The Products-Completed Operations Aggregate
"volunteer worker"), or any organization while Limit is the most we will pay under Coverage A for
acting as your real estate manager. damages because of "bodily injury" and "property
c. Any person or organization having proper damage" included in the "products-completed op-
temporary custody of your property if you die, erations hazatd".
but only: 4. Subject to Paragraph 2. above, the Personal and
(1) With respect to liability arising out of the Advertising lnjury Limit is the most we will pay un-
maintenance or use of that property; and der Coverage B for the sum of all damages be-
cause of all "personal and advertising injury" sus-
(2) Until your legal representative has been tained by any one person or organization.
appointed.
5. Subject to Paragraph 2. or 3. above, whichever
d. Your legal representative if you die, but only applies, the Each Occurrence Limit is the most we
with respect to duties as such. That represen- will pay for the sum of:
tative will have all your rights and duties under
this Coverage Part. a. Damages under Coverage A; and
3. Any organization you newly acquire or form, other b. Medical expenses under Coverage G
than a partnership, joint venture or limited liability because of all "bodily injury1 and "property dam-
company, and over which you maintain ownership age" arising out of any one I'occurrence".
or majority interest, will qualify as a Named ln- 6. Subject to Paragraph 5. above, the Damage To
sured if there is no other similar insurance avail- Premises Rented To You Limit is the most we will
able to that organization. However: pay under Coverage A for damages because of
a. Coverage under this provision is afforded only "propert¡r damage" to any one premises, while
until the 90th day after you acquire or form the rented ,to you, or,in'the case of damage by fire,
organization or the end of the policy period, while rented to you or temporarily occupied by you
whichever is earlier; with permission of the owner.
b. Coverage A does not apply to "bodily injury" or 7. Subject to Pâràgraph 5. above, the Medical Ex-
"property damage" that occurred before you : pênse Limit is the most we will pay under Cover-
acquired or formed the organization; and ¡,agè. G for all medical expenses because of "bodily
c. Coverage B does not apply to "personal and ,,, ",í'njury'r sustained by any one person.
advertising injury" arising out of an offense it¡e iim¡ts of lnsurance of this Coverage Part apply
committed before you acquired or formed the seþarately to each consecutive annual period and to
organization. ariy remaining period of less lhan 12 months, starting
No person or organization is an insured with respect with the beginning of the policy period shown in the
to the conduct of any current or past partnership; joint Declarations, unless the policy period is extended
venture or limited liability company that is not shown after issuance for an additional period of less than 12
as a Named lnsured in the Declarations. months. ln that case, the additional period will be
deemed part of the last preceding period for purposes
sEcTloN ilt- LtMtTS oF |NSURANCE ,
of determining the Limits of lnsurance.
1. The Limits of lnsurance shown in the,Declarations SECTION IV - COMMERCIAL GENERAL LIABILITY
and the rules below fix the most we will pay re- CONDITIONS
gardless of the number of:
1. Bankruptcy
a. lnsureds;
Bankruptcy or insolvency of the insured or of the
b. Claims made or "suits" brought; or insured's estate will not relieve us of our obliga-
c. Persons or organizations making claims or tions under this Coverage Part.
bringing "suits". 2. Duties ln The Event Of Occurrence, Offense,
2. The General Aggregate Limit is the most we will Glaim Or Suit
pay for the sum of: a. You must see to it that we are notified as soon
a. Medical expenses under Coverage C; as practicable of an "occurrence" or an offense
which may result in a claim. To the extent pos-
b. Damages under Coverage A, except damages sible, notice should include:
because of "bodily injury" or "property damage"
included in the "products-completed operations (1) How, when and where the "occurrence" or
hazard"; and offense took place;
c. Damages under Coverage B. (2) The names and addresses of any injured
persons and witnesses; and

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(3) The nature and location of any injury or 4. Other lnsurance


damage arising out of the "occurrence" or lf other valid and collectible insurance is available
offense. to the insured for a loss we cover under Cover-
b. lf a claim is made or "suit" is brought against ages A or B of this Coverage Part, our obligations
any insured, you must: are limited as follows:
(1) lmmediately record the specifìcs of the a. Primary lnsurance
claim or "suit" and the date received; and This insurance is primary except when Para-
(2) Notify us as soon as practicable. graph b. below applies. lf this insurance is pri-
You must see to it that we receive written no- mary, our obligations are not affected unless
tice of the claim or "suit" as soon as practica- any of the other insurance is also primary.
ble. Then, we will share with all that other insur-
ance by the method described in Paragraph c.
c. You and any other involved insured must: below.
(1) lmmediately send us copies of any de- b. Excess lnsurance
mands, notices, summonses or legal pa-
pers received in connection with the claim (1) This insurance is excess over:
or "suit"; (a) Any of the other insurance, whether
(2) Authorize us to obtain records and other primary, excess, contingent or on any
information; other basis:
(3) Cooperate with us in the investigation or (i) That is Fire, Extended Coverage,
settlement of the claim or defense against Buildels Risk, lnstallation Risk or
the "suit"; and sirnilar coverage for "your work";
(4) Assist us, upon our request, in the en- (ii) That is Fire insurance for premises
forcement of any right against any person rented to you or temporarily occu-
or organization which may be liable to the pied by you with permission of the
insured because of injury or damage to owner;
which this insurance may also apply. (i¡¡) That is insurance purchased by you
d. No insured will, except at that insured's own to cover your liability as a tenant for
cost, voluntarily make a payment, assume any
"property damage" to premises
obligation, or incur any expense, other than for rented to you or temporarily occu-
first aid, without our consent. pied by you with permission of the
owner; or
3. LegalAction Against Us (iv) lf the loss arises out of the mainte-
No person or organization has a right under this nance or use of aircraft, "autos" or
Coverage Part: watercraft to the extent not subject to
a. To join us as a party or otherwise bring us into Exclusion g. of Section I - Coverage
a "suit" asking for damages from an insured; or A - Bodily lnjury And Property Dam-
age Liability.
b. To sue us on this Coverage Part unless all of
its terms have been fully complied with. (b) Any other primary insurance available to
you covering liability for damages aris-
A person or organization may sue us to recover on
ing out of the premises or operations, or
an agreed settlement or on a final judgment the products and completed operations,
against an insured; but we,will not be liable for
for which you have been added as an
damages that are not payable under the terms of
additional insured by attachment of an
this Coverage Part or that are in excess of the ap-
plicable limit of insurance. An agreed settlement endorsement.
means a settlement and release of liability signed (2) When this insurance is excess, we will have
by us, the insured and the claimant or the claim- no duty under Coverages A or B to defend
ant's legal representative. the insured against any "suit" if any other
insurer has a duty to defend the insured
against that "suit". lf no other insurer de-
fends, we will undertake to do so, but we
will be entitled to the insured's rights
against all those other insurers.

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(3) When this insurance is excess over other c. We have issued this policy in reliance upon
insurance, we will pay only our share of the your representations.
amount of the loss, if any, that exceeds the 7. Separation Of lnsureds
sum of:
Except with respect to the Limits of lnsurance, and
(a) The total amount that all such other any rights or duties specifically assigned in this
insurance would pay for the loss in the Coverage Part to the first Named lnsured, this in-
absence of this insurance; and surance applies:
(b) The total of all deductible and self- a. As if each Named lnsured were the only
insured amounts under all that other in- Named lnsured; and
surance.
(a) We will share the remaining loss, if any,
b. Separately to each insured against whom claim
is made or "suit" is brought.
with any other insurance that is not de-
scribed in this Excess lnsurance provision 8. Transfer Of Rights Of Recovery Against Others
and was not bought specifically to apply in To Us
excess of the Limits of lnsurance shown in lf the insured has rights to recover all or part of
the Declarations of this Coverage Part. any payment we have made under this Coverage
c. Method Of Sharing Part, those rights are transferred to us. The in-
sured must do nothing after loss to impair them. At
lf all of the other insurance permits contribution our request, the insured will bring "suit" or transfer
by equal shares, we will follow this method those rights to us and help us enforce them.
also. Under this approach each insurer con-
tributes equal amounts until it has paid its ap- 9. When We Do Not Renew
plicable limit of insurance or none of the loss lf we deóide not to renew this Coverage Part, we
remains, whichever comes first. will mail or deliver to the first Named lnsured
lf any of the other insurance does not permit shown in. the',Declarations written notice of the
contribution by equal shares, we will contribute nonreneWal not less than 30 days before the expi-
by limits. Under this method, each insurer's ration date.
share is based on the ratio of its applicable lf noticê,is mailed, proof of mailing will be sufficient
limit of insurance to the total applicable limits of proof,Of notice.
insurance of all insurers.
SECTION V- DEFINITIONS
5. Premium Audit
l. "Advertisement" means a notice that is broadcast
a. We will compute all premiums for this Cover- or published to the general public or specifìc mar-
age Part in accordance with our rules and ket segments about your goods, products or ser-
rates. víces for the purpose of attracting customers or
b. Premium shown in this Coverage Part as ad- supporters. For the purposes of this definition:
vance premium is a deposit premium only. At a. Notices that are published include material
the close of each audit period we will compute placed on the lnternet or on similar electronic
the earned premium for that period and send means of communication; and
notice to the first Named lnsured. The due date
for audit and retrospective premiums is the
b. Regarding web-sites, only that part of a web-
síte that is about your goods, products or ser-
date shown as the due date on the bill. lf the
vices for the purposes of attracting customers
sum of the advance and audit premiums paid
or supporters is considered an advertisement.
for the policy period is greater than the earned
premium, we will return the excess to the first 2. "Auto" means:
Named lnsured. a. A land motor vehicle, trailer or semitrailer de-
c. The first Named lnsured must keep records of signed for travel on public roads, including any
the information we need for premium computa- attached machinery or equipment; or
tion, and send us copies at such times as we b. Any other land vehicle that is subject to a com-
may request. pulsory or financial responsibility law or other
6. Representations motor vehicle insurance law in the state where
it is licensed or principally garaged.
By accepting this policy, you agree:
However, "auto" does not include "mobile equip-
a. The statements in the Declarations are accu-
ment".
rate and complete;
b. Those statements are based upon representa-
tions you made to us; and

Page l2 of 16 O ISO Properties, lnc., 2006 cG 00 01 1207 tr


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 26 of 57

3. "Bodily injury" means bodily injury, sickness or 9. "lnsured contract" means:


disease sustained by a person, including death re- a. A contract for a lease of premises. However,
sulting from any of these at any time. that portion of the contract for a lease of prem-
4. "Coverage tenitory" means: ises that indemnifies any person or organiza-
a. The United States of America (including its tion for damage by fire to premises while
territories and possessions), Puerto Rico and rented to you or temporarily occupied by you
Canada; with permission of the owner is not an "insured
contract";
b. lnternational waters or airspace, but only if the
injury or damage occurs in the course of travel b. A sidetrack agreement;
or transportation between any places included c. Any easement or license agreement, except in
in Paragraph a. above; or connection with construction or demolition op-
c. All other parts of the world if the injury or dam- erations on or within 50 feet of a railroad;
age arises out of: d. An obligation, as required by ordinance, to
(1) Goods or products made or sold by you in indemnify a municipality, except in connection
the territory described in Paragraph a. with work for a municipality;
above; e. An elevator maintenance agreement;
(2) The activities of a person whose home is in f. That part of any other contract or agreement
the territory described in Paragraph a. pertainíng to your business (including an in-
above, but is away for a short time on your demnification of a municipality in connection
business; or with work perfon¡ed for a municipality) under
(3) "Personal and advertising injury" offenses which you âssume the tort liability of another
that take place through the lnternet or simi- party:to pay for "bodily injury" or "property dam-
lar electronic means of communication ageu to a third person or organization. Tort li-
ability rneanS a liability that would be imposed
provided the insured's responsibility to pay dam- by law:::in',:'the absence of any contract or
ages is determined in a "suit" on the merits, in the : âgreement.
territory described in Paragraph a. above or in a
settlement we agree to. ': Paiàgraph f. does not include that part of any
contract or agreement:
5. "Employee" includes a "leased worker". "Em-
ployee" does not include a "temporary worker". (1) That indemnifies a railroad for "bodily injury"
or "property damage" arising out of con-
6. "Executive officer" means a person holding any of struction or demolition operations, within 50
the officer positions created by your charter, con- feet of any railroad property and affecting
stitution, by-laws or any other similar governing any railroad bridge or trestle, tracks, road-
document. beds, tunnel, underpass or crossing;
7. "Hostile fire" means one which becomes uncon- (2) That indemnifies an architect, engineer or
trollable or breaks out from where it was intended surveyor for injury or damage arising out of:
to be.
(a) Preparing, approving, or failing to pre-
L "lmpaired property" means tangible property, other pare or approve, maps, shop drawings,
than "your product" or !'your work'!, that cannot be opinions, reports, surveys, field orders,
used or is less useful because: change orders or drawings and specifi-
a. lt incorporates "your product" or "your work" cations; or
that is known or thought to be defective, defi- (b) Giving directions or instructions, or
cient, inadequate or dangerous; or failing to give them, if that is the primary
b. You have failed to fulfill the terms of a contract cause of the injury or damage; or
or agreement; (3) Under which the insured, if an architect,
if such property can be restored to use by the re- engineer or surveyor, assumes liability for
pair, replacement, adjustment or removal of "your an injury or damage arising out of the in-
product" or "your work" or your fulfilling the terms sured's rendering or failure to render pro-
of the contract or agreement. fessional services, including those listed in
(2) above and supervisory, inspection, ar-
chitectural or engineeri ng activities.

cG 00 01 1207 O ISO Properties, lnc., 2006 Page 13 of 16 tr


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 27 of 57

10."Leased worker" means a person leased to you by However, self-propelled vehicles with the fol-
a labor leasing firm under an agreement between lowing types of permanently attached equip-
you and the labor leasing firm, to perform duties ment are not "mobile equipment" but will be
related to the conduct of your business. "Leased considered "autos":
worker" does not include a "temporary worker". (1) Equipment designed primarilyfor:
11."Loading or unloading" means the handling of (a) Snow removal;
property:
(b) Road maintenance, but not construction
a. After it is moved from the place where it is or resurfacing; or
accepted for movement into or onto an aircraft,
watercraft or "auto"; (c) Street cleaning;
b. While it is in or on an aircraft, watercraft or (2) Cherry pickers and similar devices mounted
"auto"; or on automobile or truck chassis and used to
raise or lower workers; and
c. While it is being moved from an aircraft, water-
craft or "auto" to the place where it is finally de- (3) Air compressors, pumps and generators,
livered; íncluding spraying, welding, building clean-
ing, geophysical exploration, lighting and
but "loading or unloading" does not include the well servicing equipment.
movement of property by means of a mechanical
device, other than a hand truck, that is not at- However, "mobile equipment" does not include
tached to the aircraft, watercraft or "auto". any land vehicles that aré subject to a compulsory
or flnancial responsibility law or other motor vehi-
l2."Mobile equipment" means any of the following cle insurance law ih the'state where it is licensed
types of land vehicles, including any attached ma- or principally gáraged. Land vehicles subject to a
chinery or equipment: compul,Èôry or fihãncial responsibility law or other
a. Bulldozers, farm machinery, forklifts and other motor 'vehicle , insurance law are considered
vehicles designed for use principally off public "autos".
roads; 13."Ocëurren""li' r"un, an accident, including con-
b. Vehicles maintained for use solely on or next to tinuous. or repeated exposure to substantially the
premises you own or rent; same géneral harmful conditions.
c. Vehicles that travel on crawler treads; l.4,"Personal and advertising injury" means injury,
d. Vehicles, whether self-propelled or not, main- including consequential "bodily injury", arising out
tained primarily to provide mobility to perma- of one or more of the following offenses:
nently mounted: a. False arrest, detention or imprisonment;
(l) Power cranes, shovels, loaders;,,diggers or b. Malicious prosecution;
drills; or c. The wrongful eviction from, wrongful entry into,
(2) Road construction or resurfacing equipment or invasion of the right of private occupancy of
such as graders, scrapers or rollers; a room, dwelling or premises that a person oc-
e. Vehicles not described in Paraþraþh a., b., c. cupies, committed by or on behalf of its owner,
or d. above that are not self-propelled and are landlord or lessor;
maintained primarily to provide mobility to per- d. Oral or written publication, in any manner, of
manently attached equipment of the following material that slanders or libels a person or or-
types: ganization or disparages a person's or organi-
(f) Air compressors, pumps and generators, zation's goods, products or services;
including spraying, welding, building clean- e. Oral or written publication, in any manner, of
ing, geophysical exploration, lighting and material that violates a person's right of pri-
well servicing equipment; or vacy;
(2) Cherry pickers and similar devices used to f. The use of another's advertising idea in your
raise or lower workers; "advertisement"; or
f. Vehicles not described in Paragraph a., b., c. g. lnfringing upon another's copyright, trade dress
or d. above maintained primarily for purposes or slogan in your "advertisement".
other than the transportation of persons or
cargo.

Page 14 of 16 @ ISO Properties, lnc., 2006 cG 00 01 1207 tr


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 28 of 57

l5."Pollutants" mean any solid, liquid, gaseous or b. Loss of use of tangible propedy that is not
thermal irritant or contaminant, including smoke, physically injured. All such loss of use shall be
vapor, soot, fumes, acids, alkalis, chemicals and deemed to occur at the time of the "occur-
waste. Waste includes materials to be recycled, rence" that caused it.
reconditioned or reclaimed. For the purposes of this insurance, electronic data
I 6. "Products-completed operations hazard": is not tangible property.
a. lncludes all "bodily injury" and "property dam- As used in this definition, electronic data means
age" occurring away from premises you own or information, facts or programs stored as or on,
rent and arising out of "your product" or "your created or used on, or transmitted to or from com-
work" except: puter software, including systems and applications
(1) Products that are still in your physical pos- software, hard or floppy disks, CD-ROMS, tapes,
session; or drives, cells, data processing devices or any other
media which are used with electronically controlled
(2) Work that has not yet been completed or equipment.
abandoned. However, "your work" will be
deemed completed at the earliest of the fol- 18."Suit" means a civil proceeding in which damages
lowing times: because of "bodily injury", llproperty damage" or
"personal and adveftising injury" to which this in-
(a) When all of the work called for in your surance applies are alleged. "Suit" includes:
contract has been completed.
a. An arbitration proceeding in which such dam-
(b) When all of the work to be done at the ages are claimed and to which the insured
job site has been completed if your con- must submit or does sùbmit with our consent;
tract calls for work at more than one job or
site.
b. Any other alternative dispute resolution pro-
(c) When that part of the work done at a job ceeding in which such damages are claimed
site has been put to its intended use by and to which the insured submits with our con-
any person or organization other than , sent.
another contractor or subcontractor
19."Témporary worker" means a person who is fur-
working on the same project.
nished,,to you to substitute for a permanent "em-
Work that may need service, maintenance, ployee" on leave or to meet seasonal or short-term
correction, repair or replacement, but which workload conditions.
is otherwise complete, will be treated as
completed. 20."Volunteer worker" means a person who is not
your "employee", and who donates his or her work
b. Does not include "bodily injury" or "property and acts at the direction of and within the scope of
damage" arising out of: duties determined by you, and is not paid a fee,
(1) The transportation of property, unless the salary or other compensation by you or anyone
injury or damage arises out of a condition in else for their work performed for you.
or on a vehicle not owned or operated by 21. "Your product":
you, and that condition was created by the
"loading or unloading" oJ that vehicle by any a. Means:
insured; (1) Any goods or products, other than real
property, manufactured, sold, handled, dis-
(2) The existence of tools, uninstalled equip-
ment or abandoned or unused materials; or tributed or disposed of by:
(3) Products or operations for which the classi- (a) You;
fication, listed in the Declarations or in a (b) Others trading under your name; or
policy schedule, states that products- (c) A person or organization whose busi-
completed operations are subject to the ness or assets you have acquired; and
General Aggregate Limit.
(2) Containers (other than vehicles), materials,
17. "Property damage" means: parts or equipment furnished in connection
a. Physical injury to tangible property, including with such goods or products.
all resulting loss of use of that property. All b. lncludes:
such loss of use shall be deemed to occur at
the time of the physical injury that caused it; or (1) Warranties or representations made at any
time with respect to the fitness, quality, du-
rability, performance or use of "your prod-
uct"; and

cG 00 01 1207 @ ISO Properties, lnc., 2006 Page 15 of 16 tr


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 29 of 57

(2) The providing of or failure to provide warn-


ings or instructions.
c. Does not include vending machines or other
property rented to or located for the use of oth-
ers but not sold.
22."Your work":
a. Means:
(l) Work or operations performed by you or on
your behalf; and
(2) Materials, parts or equipment furnished in
connection with such work or operations.
b. lncludes:
(1) Warranties or representations made at any
time with respect to the fitness, quality, du-
rability, performance or use of "your work",
and
(2) The providing of or failure to provide warn-
ings or instructions.

Page 16 of 16 O ISO Properties, lnc., 2006 cG 00 011207 tr


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 30 of 57
POLICY NUMBER: HDO c249403s4

An lmportant Notice To Our


ACE USA Alaska Policyholders

ALASKA DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT


DIV¡SION OF INSURANCE
ATTORNEY FEES COVERAGE NOTICE A

THIS POLICY LIMITS COVERAGE FOR ATTORNEY FEES


UNDER ALASKA RULE OF CIVIL PROCEDURE 82

ln any suit in Alaska in which we have a right or duty to defend an insured in addition to the limits of liability, our
obligation under the applicable coverage to pay attorney fees taxable as costs against the insured is limited as
follows:

Alaska Rule of Civil Procedure 82 provides that if you are held liable, some or all of the attorney fJes oi the person
ma!ng a claim against you must be paid by you. The amount that must be paid by you is determinedr,by Alaska Rule
of Civil Procedure 82. We provide coverage for attorney fees for which you are liable under Alaska Rule or Civil
Procedure 82 subject to the following limitation: , ,
,,

We will not pay that portion of any attorney's fees that is in excess of fees calcutated by applying the
schedule for contested cases in Alaska Rule Civil Procedure 82(bX1) to the limit ot ilatiiiitlr of tfre
applicable coverage. : .:t :.

This limitation means the potential cosfs fhaf may be awarded against you as attorney fees may not be
covered in full. You will have to pay any attorney fees not covered directty.
For example, the attorney fees provided by the schedule for contested cases in Alaska Rule of Civil procedure
82(b)(1) are:
'' :

20% of thefirst $25,000 of a judgment;


10% of the amounts over 925,000 of a judgment.

Therefore, if a court awards a jydgment against you in the amount of $125,000, in addition to that amount you would
be liable under Alaska Rule of Civil Procedure B2(b)(1) for attorney fees of $15,000, calculated as follows:

2je/o of $25,000 $5,000


107o of $100,000 $10,000
Total Award $125,000 ïotal Attorney Fees $15,000

lf the limit of liability of the applicable coverage is $100,000, we would pay $100,000 of the 9125,000 award, and
$12,500 for Alaska Rule of Civil Procedure 82(b)(1) attorney fees, as calculaied as follows:

20% ot $25,000 $5,000


1Q% ol $75,000 $7,500
Total Limit of Liability $100,000 ïotal Attorney Fees Covered $15,000

lgqwoylO be liable to pay, direcily and without our assistance, the remaining $2S,OOO in liability plus the remaining
$2,500 for attorney fees under Alaska Rule of Civil Procedure 82 not covered by this policy.

ALL- 4X07 (7/96)


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 31 of 57

POLICY NUMBER: HDO G24940354

COLORADO FRAUD STATEMENT

It is unlawful to knowingly provide false, incomplete, or misleading facts or information to an insurance company for the
purpose of defrauding or attempting to defraud the company. Penalties may include imprisonment, fines, denial of
insurance, and civil damages. Any insurance company or agent of an insurance company who knowingly provides
false, incomplete, or misleading facts or information to a policyholder or claimant for the purpose of defrauding or
attempting to defraud the policyholder or claimant with regard to a settlement or award payable from insurance
proceeds shall be reported to the Colorado division of insurance within the department of regulatory agencies.

ALL-22368 (06/07) @ ISO Properties, lnc., 2004


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 32 of 57

POLICY NUMBER: HDO G24940354

Questions About Your lnsurance?


ACE USA

Answers to questions about your insurance, coverage information, or assistance in resolving complaints can be
obtained by calling ACE USA, Customer Support Service Department, aT 1-8QO-352-4462.

ALL-5X45 (11196) Ptd. in U.S.A.


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 33 of 57
POL¡CY NUMBER: HDO G24940354

NOTICE TO ALL OKLAHOMA POLICYHOLDERS

WARNING: Any person who knowingly, and with intent to injure, defraud or deceive any insurer,
makes any claim for the proceeds of an insurance policy containing any false, incomplete or misleading
information is guilty of a felony.

You are insured by the Company listed on the Signature page which is named on the first page of the Declarations
of this policy. lt is an ACE USA company and has its principal office at 436 Walnut Street, PO Box 1000,
Philadelphia, PA 19106-3703.

ALL-2U78b (2/06) Ptd. in U.S.A.


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 34 of 57

POLICY NUMBER: HDO G24940354

NOTTCË

TO PENNSYLVANIA PROPERTY AND CASUALTY INSURANCE


POLICYHOLDERS

A Pennsylvania law known as the "lnsurance Consultation Services Exemption Act" has a provision that
insurers, their agents, employees or service contractors are not subject to liability for damages from
injury, death or loss occurring as a result of any act or omission by any person in the course of performing
any survey, consultation, inspection, advisory or related seruice incident to an application for insurance, a
new policy for insurance or an existing policy or insurance for the purpose of reducing the likelihood of
injury, death or loss.

This provision shall not apply:

1) lf the injury, loss or death occurred during the actual pedormance of consultation services and was
caused by the negligence of the insurer, its agent, employees or service contractors: which was a
::|
...
2) To any consultation services required to be performed under the piovisions of a written service
contract not incidental to a policy of insurance

3) ln any action against any insurer, its agents, employees or service contractors for damages caused by
the act or omission of said insurer, its agents, employees or service contractors in which it is judicially
determined that such act or omission constituted a crime, actual màlice or gross negligence.

This provision of the "lnsurance Consultation Services Exemption Act" applies to all insurance
consultation services rendered incídent to policies of property or casualty insurance. lt does not apply to
the immunities and protections provided by section 305, act of June 2,1915 known as the "Pennsylvania
Workmen's Compensation Act."

The provisions of the "lnsurance Consultation Services Exemption Act" shall not be effective and
applicable unless the insurer furnishes the insured with written notice of the provision of this act at the
time the policy is issued or renewed. The lnsurance Commissioner has approved the contents of this
notice and the manner in which the notice is given.

Ail-5S54 (7i92)
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 35 of 57
POLICY NUMBER: HDO G24940354

lnformation and Gomplaints


ø/-"
ace group

This information is being provided to you pursuant to the requirements of Title 28, Part 1, ChapterI , Subchapter E. 1.601
of the Texas Administrative Code relating to our Toll Free information and complaint number.

IMPORTANT NOTICE AVISO IMPORTANTE

To obtain information or make a complaint: Para obtener informacion o para someter una queja:

You may call the Company's toll-free telephone number Usted puede llamar al numero de telefono gratis de la
for information or to make a complaint at: Compania para informacion o par.a someter una queja
at:
r-(800) 352-4462 I (800) 3524462
You may also write to the Company at: Usted tambien puede escribir a la Compania:

USA _ACE USA


-ACE
Customer Services Customer Services
PO Box 1000 PO Box .l00Û ' ,',
Philadelphia, PA 19'106-3703 Philadelphia, PA 19106-3703

You may contact the Texas Department of lnsurance to Puede:communicarse con el Departmento de Seguros
obtain information on companies, coverages, rights or de Texás para obtener informacion acerca de
complaints at: companias, coberturas, derechos o quejas al:

1-(800) 252343s 1 (800) 252-3439

You may write the Texas Department of lnsurance ,


Puede escriblr al Departamento de Seguros de Texas

P. O. Box 149104 :
P. O. Box 149104
AUSTTN, TX78714-9104 AUST|N,lX 78714-9104
FAX # (512) 475-1771 FAX # (512) 475-1771
Web: http ://www.tdi.state.tx. us Web: htto://www.tdi. state.tx. us
E-mail : Consum erProtectionrôidi.state.tx. us E-mail : ConsumerProtection@tdi.state.tx. us

PREMIUM OR CLAIM DISPUTES: Should you have a DISPUTAS SOBRE PRIMAS O RECLAMOS: Sitiene
dispute concerning your premium or about a claim you una disputa concerniente a su prima o un reclamo, debe
should contact your agent or the companyfirst. lf the comunicarse con el agente o la compania primero. Si
dispute is not resolved you may contact the Texas no se resuelve la disputa puede entonces
Departrment of lnsurance. communicarse con el departmento de Seguros en Texas

ATTACH THIS NOTICE TO YOUR POLICY: This notice UNA ESTE AVISO A SU POLIZA: Este aviso es soto
is for information only and does not become a part or para proposito de informacion y no se convierte en parte
condition of the attached document. o condicion del documento adjunto.

ALL- 4Y30d (10/2009)


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 36 of 57

POLICY NUMBER: HDO G24940354

ACE USA Phone:1.866.357.3797


Risk Control Services Fax: 21 5.640.5084
436 Walnut Street www,ace-ina,com
ACE USA Philadelphia, PA 19106-3703

National Manager, Jurisdictional Services

RE: RISK GONTROL SERVICES FOR TÐ(AS POLIGYHOLDERS


Gommercial Automobile Liability, General Liability, Professional Liability, and Medical
Professional Liability (other than Hospitals)

The ACE Companies are required by Texas law and regulat¡ons to maintain or provide accident prevention services
for its commercial automobile, general liability and professional liability policyholders. The Ace Companies offer an
array of accident prevention services in Texas at no additional charge. These services are intended to help prevent
and/or minimize loss.

These services include but are not limited to: individual risk surveys; improvement recommendations; loss
investigation; specific loss problem identification and recommended improvement actions.

ACE may recommend one or more of these services based upon hazard, experience, and size of your Texas
operations. You have the choice of receiving or declining any of the services offered. lf you wish to decline all of the
services or wish to receive only selected risk control service, ptease indicate that by sign¡ng ànd dating this letter in
the space provided below. Please mail or fax to the captioned address or fax number. lf you decline all of ACE's risk
control services or choose only a support service, such as ergonomics survey, driving training, or other services and
not a complete risk survey, we still have a responsibility under Texas law and regulation to monitor your losses. ln
the event you start to have a loss problem and a trend is established, and/or adverse loss ratio is developed, we will
contact you and offer to assist you in addressing the situation.

Sincerely,

National Manager, Jurisdictional & Regulatory Services


ACE USA Risk Control Services
436 Walnut Street, Philadelphia, PA 19106-3703
or call toll free at: 1-866-357-3797

tr I am aware of the loss control services offered and decline them. I have made other arrangements for
these services.

n I wish to obtain the following offered accident prevention services:

n I have no risk control services needs now. I reserve the right to request loss control services within the
period. ",

(Signature) (Phone #) w
Print Name: Policy #

Company Name:

Address:

City, State, Zip:

One of the ACE Group of Insurance & Reinsurance Companies


This Company has undertaken a survey of your premises, equipment, or operations (whichever is pertinent to the type of insurance
applied for or provided) for the purpose of supporting the functions of risk underwriting. Any recommendations or information
provided is not intended as a substltute for advice from a safety expert or legal counsel you may retain for your own purposes. lt is
not intended to supplant any legal duty you may have to provide a safe premises, workplace, product or operation.

ALL- 1 1559d (10t07)


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 37 of 57

SCHEDULE OF NAMED INSUREDS

Named lnsured M-I, L. L. C. Endorsement Number


1
Policy Symbol Policy Number Policy Per¡od Effective Date of Endorsement
HDO e24940354 04/oL/20L0 to 04/OL/2OLL
lssued By (Name of lnsurance Company)
ACE American Insurance Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement modifies insurance prov¡ded under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE FORM

The Named lnsured shown in the Declarations is amended to read as follows:

M-I/ T,.L.c.
as well as any organization other than a partnership or joint venture, ,:and over which you or your subsidiary curren¡y
maintain ownership or majority interest provided there is no other similâr,, insurance availáble to that organization;
and any
other organization you newly acquire or form, other than a partnership or joint venture, and over which you maintain
ownership or majority interest, provided:

a) there is no other similar insurance available to that organization; and

b) you notify us of such acquisition not later than 60 days after lhe end of the policy period.

As respects newly acquired or formed organizations'' ' ,,,

1. Coverage A does not apply to "bodily injury'l or "pròperty damage " that occurred before you acquired or formed
the organization; and

2' Coverage B does not apply to "personal injury" or "advertising injury" arising out of an offense committed before
you acquired or formed the organization.

No person or organization is an insured with respect to the conduct of any current or past joint venture that is
not shown as
a Named lnsured on this schedule.

Authorized Agenl

LD-12992a (08/04) lncludes copyrighted material of lnsurance services office, lnc. with its permission
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 38 of 57
Case 4:10-cv-02931 Document 1-1
POLICY NUMBER: HDO G24940354
Filed in TXSD on 08/16/10 Page 39 of 57
ENDT. #2

REIMBURSEMENT OF DEDUCTIBLE ENDORSEMENT


ALLOCATED LOSS ADJUSTMENT EXPENSE ("ALAE")
¡NCLUDED IN THE DEDUCTIBLE AMOUNT

Named lnsured Endorsement Number


M-r, t.L.c. 2
Policy Symbol Policy Number Policy Period Effective Date of Endorsement
HDO c24940354 04/ot/20L0 to 04/0t/20tt
lssued By (Name of lnsurance Company)
ÀCE American Insurance Company
lnsert the oolicv number. The remainder of the ¡nformation is to be comDleted onlv when this endorsement is issued subseouent to the DreDarat¡on of the oolicv.

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.


This endorsement mod¡f¡es all insurance provided under the following:

COMMERCIAL GENER,AL LIABILITY COVERAGE FORM

r) DEDUCTIBLE AMOUNT

1) DeductibleAmount: $1,000,000
2) The Deductible Amount applies separately to:
(a) The sum of: ,

(i) damages per "occurrence" under Coverage A; and


(ii) medical expenses per accident under Coverage C; and
:..:

(iii) "ALAE' incurred with respêc! to an' l'occurrence" under Coverage A.


(b) The sum of: " ,,,,,,,

(i) damages sustained, by ãny one person or organization under Coverage B; and
(ii) 'ALAE" incurred with respect to an offense under Coverage B.

il) ADDTTTONALPROVTSIONS

1) "We" will pay all sums that "we" become legally obligated to pay up to the Limits of lnsurance under
this policy.

2) "You" must reimburse us up to the Deductible Amount for any amounts we have paid under this
policy.

3) The Deductible Amount will apply as shown in Section I of this endorsement regardless of the
number of claimants, lnsureds, claims made or "suits" brought, or persons or organizations making
claims or bringing "suits".

4) lf "you" fail to reimburse "us" for any amount due under this endorsement, or fail to provide "us" any
collateral that "we" require, "you" will be in default of "your" obligations to "us", and "we" may take any

age

lncludes copyrighted material of lnsurance Services Office, lnc. with its permission
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 40 of 57

steps "we" deem necessary to enforce our rights against "you", including but not limited to drawing on
any amount of collateral "we" hold or canceling this policy, if permitted by law.

5) Each Named lnsured is jointly and severally liable for all reimbursable amounts under this
endorsement.

6) lf "we" recover any payment "we" make under this policy from anyone liable for damages or "ALAE",
the amount "we" recover will first be applied to any payments "we" made in excess of the Deductible
Amount and to "oui' expenses in obtaining the recovery. The remainder of the recovery, if any, will
reduce the amount that is reimbursable by "you".

ril) ALLOCATED LOSS ADJUSTMENT EXPENSE DEFINITION

"Allocated Loss Adjustment Expense(s)" or "ALAE" means such claim expenses, costs and any
interest provided for under Section I - Coverages, Supplementary Payments - Coverages A and B of
this policy, that are incurred in connection with the investigation, administration, adjustment, subrogation,
settlement or defense of any claim or lawsuit that we, under our accounting practices, directly allocate to
a particular claim, whether or not a payment indemnifying the claimant(s) is made. Such expenses
include, but are not limited to all court costs, fees and expenses; fees for service of process; fees and
expenses to attorneys for legal services; the cost of services of undercover operations and detectives;
fees to obtain medical cost containment services; the cost of employing experts for the purpose of
preparing maps, photographs, diagrams, and chemical or physical analysis, or for expert advice or
opinion; the cost of obtaining copies of any public records; and the cost of depositions and court
reporters or recorded statements, provided, however, that Allocated Loss Adjustmént Eipense shall not
include the salaries and traveling expenses of our employees or our overhead and adjusters'fees.

lv) NO OTHER CHANGES

All other terms of this policy, including those with respect to:

(a) Our right and duty to defend any "insured" against a "suit" asking for damages to which this
insurance applies, and

(b) Limits of lnsurance, and

(c) Your Duties ln The Event Of Occurrence, Offense, Claim Or Suit

remain unchanged.

Authorized Agent

LD-19643e (09/09) Page2 of 2

lncludes copyrighted material of lnsurance Services Offìce, lnc. with its permission
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 41 of 57
POLICY NUMBER: HDO G24940354 ENDT. #3

ADDITIONAL INSURED - EMPLOYEES


FELLOW EMPLOYEES - BODILY INJURY ONLY

Named lnsureo Endorsement Number


M-I, l,.L.C. 3
Policy Symbol Policy Number Policy Period Effective Date of Endorsement
HDO c24940354 04/oL/20L0 to 04/Ot/20L];
lssued By (Name of lnsurance Company)
ACE American Insurance Company
lnsert the policy number. The remainder of the information is to be comoleted onlv when this endorsement is issued subseauent to the oreoaration of the ooìicv.

THIS ENDORSEMENT CHANGES YOUR POLICY. PLEASE READ IT CAREFULLY.

This endorsement mod¡f¡es insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

Paragraph 2. a of Section ll -'WHO lS AN INSURED" is replaced by the following:

a. Your "employees", other than your "executive officers", but only for acts within the scoþe of their employment by you
or while performing duties related to the conduct of your business. However, no i'èmployee" is an insured for:

(1) "Personal and Advertising injury":


': I

a.) To you, to your partners or members (if you are a partnership or joint venture), or to a co-"employee"
while in the course of his or her employment or while performing dúties related to the conduct of your
business;

b.) To the spouse, child, parent, brother or sister of the òo-lemployee" as a consequence of paragraph
(1 Xa) above;

c.) For which there is an obligation to share damages with or repay someone else who must pay damages
because of the injury described in paragraphs (1 )(a) or (b) above;.

(2) "Bodily injury" or "personal and advertising injury; arising out of his or her providing or failing to provide
professional health care services.

(3) "Property damage" to property:

(a) Owned, occupied or used by,

(b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any
purpose by

you, any of your "employees" or, if you are a partnership or joint venture, by any partner or member.

Authorized Representative

tn
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 42 of 57
POLIGY NUMBER: HDO G24940354 ENDT, #4

ALIENATED PREMISES
Named lnsured M-I , L. L. C. Endorsement Number
4
Policy Symbol Policy Number Policy Period Effective Date of Endorsement
HDO c24940354 04/oL/20t0 to 04/oL/2OLL
lssued By (Name of lnsurance Company)
ACE American Insurance Companv
lnsert the policy number. The rema¡nder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.


This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE FORM

Paragraph () of A.2.j. of Section l, Coverages is deleted.

Authorized Agent

LD-6X26 Ptd. ln U.S.A.


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 43 of 57
POLICY NUMBER: HDO G24940354 ENDT. #5

AMENDMENÏ OF CONDITIONS

Named lnsured Endorsement Number


M-r, T..T,.c. 5
Policy Symbol Policy Number Policy Period Effective Date of Endorsement
HDO c24940354 04/oL/20L0 to 04/0L/20LL
lssued By (Name of lnsurance Company)
ACE American Insurance Company
lnsert the policy nuqber. The remainder of the information is to be completed only when this endorsement is issued subsequent to the Þreoaration of the oolicv.

THIS ENDORSEMENT CHANGES YOUR POLICY. PLEASE READ IT CAREFULLY.

This endorsement mod¡fies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

The following are added to paragraph 2. Duties ln The Event of Occurrence, Claim or Suit of Section lV - Commercial
General Liabil ity Conditions:

e. lt is agreed that knowledge of an occurrence by any of your agents, servants or employees shall not constitute
knowledge by you unless one of your executive officers or anyone responsible for administering your insurance
program has received such notice from the agent, servant or employee.

The following is added to paragraph 6. Representations of Section lV - Comrnercial General Liability Conditions:

d. Your failure to disclose all hazards existing as of the inception date of the policy shall not prejudice you with respect
to the coverage afforded by this policy, provided such failure or omission is not intentional and you did not know
about such hazards prior to the commencement of the policy period.

Authorized Representative

n perm
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 44 of 57
POLICY NUMBER: HDO G24940354 ENDT. #6

GoNSTRUCT|ON PROJECT(S) GENERAL AGGREGATE LtMtT

Named Insured Endorsement Number


M-r, L.L.C. 6
Policy Symbol Pol¡cy Number Polrcy PenoO Effective Date of Endorsement
HDO c24940354 04/ot/20tO to 04/OL/20LL
lssued By (Name of lnsurance Company)
ACE American Insurance Company

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This Endorsement modif¡es insurance provided under the followíng:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

A. Subject to and eroding the General Aggregate Limit shown in the Declarations, for all sums which the insured
becomes legally obligated to pay as damages caused by "occurrences" under COVERAGE A (SECTION l), and for
all medical expenses caused by accidents under COVERAGE C (SECTION l), which can be attributed only to
ongoing operations at your construction projects away from premises owned by or rented to you (such ongoing
operations at such construction projects are hereinafter defined as "Your Projects"):

1. A separate Construction Project General Aggregate Limit applies to all of Your Projects, and that limit is
Equal to $2,000, 000
2. The Construction Project General Aggregate Limit is the most we will pay for the sum of all damages
under COVERAGE A, except damages because of "bodily injury" or "property damage" included in the
"products-completed operations hazard", and for medical expenses under COVERAGE C, which damages and
medical expenses can be attributed only to "Your Projects", regardless of the number of:

a. lnsureds;

b. Claims made or "suits" brought; or

c. Persons or organizations making claims or bringing "suits".


o
Any payments made under COVERAGE A for damages or under COVERAGE C for medical expenses that can be
attributed to "Your Projects" shall reduce the Construction Project General Aggregate Limit and shall also
reduce and erode the General Aggregate Limit shown in the Declarations.

The limits shown in the Declarations for Each Occurrence, Fire Damage and Medical Expense continue to apply.
However, such limits will be subject to the Construction Project General Aggregate Limit, as well as the General
Aggregate Limit shown in the Declarations.

B. For all sums which the insured becomes legally obligated to pay as damages caused by "occurrences" under
COVERAGE A (SECTION l), and for all medical expenses caused by accidents under COVERAGE C (SECTION l),
which cannot be attributed only to "Your Projects":

1. Any payments made under COVERAGE A for damages or under COVERAGE C for medical expenses shall reduce
the amount available under the General Aggregate Limit or the Products-Completed Operations Aggregate
Limit, whichever is applicable; and

2. Such payments shall not reduce the Construction Project General Aggregate Limit.

LD-21732 (01107) Copyright, lnsurance Services Office, lnc., 1996 Pagel of2
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 45 of 57

C. When coverage for liability arising out of the "products-completed operations hazard" is provided, any payments for
damages because of "bodily injury" or "property damage" included in the "products-completed operations hazard" will
reduce the Products-Completed Operations Aggregate Limit, and not reduce the General Aggregate Limit nor the
Constructi on Proj ect General Aggregate Li mit.

D. lf any one or more of "Your Projects" has been abandoned, delayed, or abandoned and then restarted, or if the
authorized contracting parties deviate from plans, blueprints, designs, specifications or timetables, the project will still
be deemed to be the same construction project.

E. The provisions of Limits Of lnsurance (SECTION lll) not otherwise modified by this endorsement shall continue to
apply as stipulated.

Authorized Agent

LD-21732 (01107) Copyright, lnsurance Services Office, lnc., 1996 Page2 of 2


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 46 of 57
POLICY NUMBER: HDO G24940354 ENDT. #7

EMPLOYEE BEN EFITS LIABILITY ENDORSEMENT


Named lnsured M-I, L. L. C. Endorsement Number
7
Policy Symbol Policy Number Policy Period Effective Date of Endorsement
HDO e24940354 04/OL/20t0 to 04/0L/2oLL
lssued By (Name of lnsurance Company)
ACE Àmerican Insurance Cornpany
lnsert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.


This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE FORM


THIS ENDORSEMENT PROVIDES CLAIMS-MADE COVERAGE.

Limits of lnsurance
Each Claim Limit $ 2,000,000
Aggregate Limit $ 2,000,000
Retroactive Date L2/OL/200s
Deductible Amount $ 1,000,000
(lf no entry appears above, the information required to complete this endorsement will be shown ìn the Declarations as applicable to
this endorsement.)
INSURING AGREEMENT .
.

We will pay under this endorsement those sums that the insured becomes legally obligated to pay as damages because of a claim or
"suit" brought by any employee, former employee, or their beneficiaries or legal representatives in connection wlth any negligent
error, omission, or breach of duty in the "administration" of your "employee benefits" programs.

We will have the right and the duty to defend any "suit" seeking those damages. But:

The amount we will pay for damages is limited as described in the Schedule as Limits of lnsurance;

We may investigate and settle any claim or "suit" at our discretion; and

Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or
settlements under this endorsement.

This insurance applies to negligent errors, om¡ssions, breaches of duty, or misstatements only if a claim for damages is fìrst made
against any insured during the policy period or any Extended Reporting Period we provide under the paragraph titled Extended
Reporting Period.

This insurance does not apply to ,negligent errors, omissions, breaches of duty, or misstatements which occurred before the
Retroactive Date shown above, or which occur after the end of the policy period.

WHO IS AN INSURED .

With respect to this endorsement, Section ll - Who ls An lnsured is modified to include employees only while authorized to act in the
"administration" or your "employee benefits" programs.

EXCLUSIONS

lnsurance under this endorsement does not apply to any claim or "su¡t" arising out of:

any dishonest, fraudulent, criminal or malicious act;

any "Bodily lnjury," "Personal lnjury," "Advertising lnjury," or "Property Damage";

claim for failure of performance of contract bV anv lnsurer:

LD-9863a (10/96) Printed in U.S.A. Page 1 of 3


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 47 of 57

any obl¡gation of the insured under a workers' compensation, disability benefits or unemployment compensation law or any
similar law;
any termination of employment;

any failure of stock to perform as represented by you;

any advice given by you to your "employees" to participate or not to participate in stock subscription plans; or

any actual or alleged error or omission or breach of duty, committed or alleged to have been committed by a trustee, in the
discharge of fiduciary duties, obligations or responsibilities imposed by the Federal Employee Retirement lncome Security Act of
1974 or Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99-272) or Section 9319 of the
Omnibus Budget Reconciliation Act of 1986 (Public Law 99-509) or any amendments to these Acts.

LIMITS OF INSURANCE

The Limits of lnsurance shown in the Schedule of this endorsement and the rules below, fix the most we will pay regardless of the
number of:

lnsureds;

Claims made or "suits" brought; or

Persons or organizations making claims or bringlng "suits".

The Aggregate Limit is the most we will pay for the sum of all damages under this endorsement.

The Each Claim Limit is the most we will pay for damages arising out of any one claim or "suit".

The Limits of lnsurance apply separately to each consecutive annual period and to any remaining period of less than 12 months,
starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an
additional period of less than 12 months. ln that case, the additional period will be deemed part of the last preceding period for
purposes of determining the Limits of lnsurance.

DEDUCTIBLE

A Deductible in the amount in the Schedule of this endorsement applies to each claim covered by this endorsement. We will
subtract this amount from the amount of damages payable fór each claim.

ADDITIONAL DEFINITIONS

The following additional definitions are added to Sectiôn V - Def¡nitions:

"Employee benefits" means group life insurance, group accident or health insurance, profit sharing plans, pension plans,
"employee" stock subscription plans, "employee" travel, vacation, or savings plans, workers compensation, unemployment
insurance, social security and disability benefits insurance, and any other similar benefit program.

"Administration" means any of the following acts that you do or authorize a person to do:

Counseling "employees", other,than giving legal advice, on "employee benefits" programs;

lnterpreting your "employee benefits" programs;

Handling records for your "employee benefits" programs; and

Effecting enrollment, termination or cancellation of "employees" under your "employee benefits" programs.

"Administration" does not include:

The failure of performance of any contract by any insurer;

The failure of any investment plan to perform as represented by an insured;

The inability of "employee benefit" programs to meet their obligation due to insolvency.

LD-9863a Page 2 of 3
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 48 of 57

EXTENDED REPORTING PERIOD

1. We will automatically provide an Extended Reporting Period as described in paragraph 2. and 3. below if:

a. This endorsement is cancelled or not renewed; or

b. We renew or replace this endorsement with insurance that:

(1) Has a Retroactive Date later than the date shown on this endorsement; or

(2) Does not apply to errors, omissions, breaches of duty, or misstatements on a claims-made basis-

2. The Extended Reporting Period does not extend the policy period or change the scope of coverage provided. lt applies only to
claims for errors, omissions, breaches of duty, or misstatements that occur before the end of the policy period but not before
the Retroactive Date shown on this endorsement.

Once in effect, the Extended Reporting Period may not be cancelled.

3. The Extended Reporting Period is automatically provided without additional charge. This period starts with the end of the
policy period and lasts for Five years.

The Extended Reporting Period does not apply to claims that are covered under any subsequent insurance you purchase, or
that would be covered but for exhaustion of the amount of insurance applicable to such claims.

4. The Extended Reporting Period does not reinstate or increase the Limits of lnsurance.

Authorized Agent

LD-9863a Page 3 of 3
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 49 of 57
POLICY NUMBER: HDO G24940354 ENDT. #8

EXCLUSION - ASBESTOS
Named lnsured M-I , L.I,. C. Endorsement Number
I
Policy Symbol Policy Number Policy Period Eff. Date of Endorsement
HDO c24940354 04/OL/2OL0 to 04/0L/20LL
lssued By (Name of lnsurance Company)
ACE American Insurance Companv
¡nserttheoolicvnumber. Theremainderoftheinformationistobecompletedonlvwhenthisendorsementisissuedsubsequenttothepreparationofthe

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE FORM


FARM COVERAGE FORM
LIQUOR LIABILITY COVERAGE FORM
OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE FORM
POLLUTION LIABILITY COVERAGE FORM
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE FORM
RAILROAD PROTECTIVE LIABILITY COVERAGE FORM
SPECIAL PROTECTIVE AND HIGHWAY LIABILITY POLICY . NEW YORK
:',
This insurance does not apply to any loss, demand, claim or "suit" arising out of or related in any way to
asbestos or asbestos-containing materials.

Authorized Agent

LD-3R16 (Ed. 3/87) Printed in U.S.A. Reprinted in part with permission of lnsurance Serv¡ce Office, lnc., 1985
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 50 of 57
POLICY NUMBER: HDO G24940354 ENDT. #9

EXCLUSION
EXTREMELY LOW FREQUENCY ELECTROMAGNETIC FIELDS IELF.EMF
Namedlnsured M-I, L.T,.C. Endorsement Number
9
Policy Symbol Policy Number Policy Period Effective Date of Endorsemenl
HDO G24940354 04/oL/2OL0 to 04/OL/2OLt
lssued By (Name of lnsurance Company)
ACE American Insurance Company
lnsert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.


This endorsement mod¡f¡es insurance prov¡ded under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE FORM


FARM COVERAGE
OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE FORM
PRODUCTS/COMPLETED OPERATIONS COVERAGE FORM
RAILROAD PROTEGTIVE LIABILITY COVERAGE FORM
SPECIAL PROTECTIVE AND HIGHWAY LIABILITY POLICY- NEW.YORK

This insurance does not apply to, and we shall have no duty of any kind with respect to, any injury, damage,
expense, cost, loss, liability or legal obligation arisíng out of or allegedly ar¡sing òut of, or in any way related to, any
exposure, other than an instantaneous or abrupt exposure that,results in electrocution, electric shock or skin
burning, to "extremely low frequency electromagnetic fields," or "ELF-EMF."

"Extremely low frequency electromagnetic fields," or "ELF-EMF," means the 60-Hertz power frequency electric and
magnetic fields or invisible lines of force that occur wherever electricity is present.

This exclusion applies, but is not limited, to any injury, damage, expense, cost, loss, liability or legal obligation to
trest for, monitor, abate, weaken, control or take any other remedial action w¡th respect to "ELF-EMF"

The addition of this endorsement does not imply that other policy provisions, including but not limited to any
pollution exclusion, do not othen¡vise preclude or exclude coverage for "ELF-EMF" related injury, damage,
expense, cost, loss, liability or legal obligation.

Author¡zed Agent

LD-8R38 (1/94) Printed in U.S.A.


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 51 of 57
POLICY NUMBER: HDO G24940354 ENDT. #10

EXCLUSION . LEAD
Named lnsured M-I, L. L. C. Endorsement Number
10
Policy Symbol Policy Number Policy Period Effective Date of Endorsemenl
HDO e24940354 04/0L/20t0 to 04/0L/20LL
lssued By (Name of lnsurance Company
ACE American Insurance Company
lnsert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.


This endorsement modif¡es insurance provided under the following:

COMMERC¡AL GENERAL LIABILITY FORM


FARM COVERAGE FORM
OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE FORM
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE FORM
RAILROAD PROTECTIVE LIABILITY COVERAGE FORM
SPECIAL PROTECTIVE AND HIGHWAY LIABILITY POLICY - NEW YORK

THE COMBINE POLICY _ SECTION II


COMMERCIAL FARM POLICY _ SEGTION I¡
FARMERS PACKAGE POLICY - SECTION II

This insurance does not apply to, and we shall have no duty of any kind with respect to, any injury, damage, expense,
cost, loss, liability or legal obligation arising out of or allegedly arís¡ng out of or in any way related to the toxic properties
ofleadorlead-containingproductS,mater¡alSorSUbStanceS.

This exclusion applies to all forms of lead, including but not limited to solid, liquid, vapor and fumes.
t,
This exclusion applies, but is not limited, to any injury, dãmãge, expense, cost, loss, liability or legal obligation to test
for, monitor, abate, remove, or take any other remedial action with respect to lead or lead-containing products, materials
or substances.

The addition of this endorsement does not lmply that other policy provisions, including but not limited to any pollution
exclusion, do not also exclude coverage for lead-related injury, damage, expense, cost, loss, liability or legal obligation.

Authorized Agent

LD-4S35 (Ed. 6/92) Ptd. ln U.S.A.


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 52 of 57
POLICY NUMBER: HDO G24940354 ENDT. #11

MTBE EXCLUSION

Named lnsured Endorsement Number


M-r, L.L.C. 11
Policy Symbol Policy Number Policy Period Effective Date of Endorsement
HDO c24940354 04/oL/20L0 to 04/oL/20]-L
lssued By (Name of lnsurance Company)
ACE American Insurance Company
lnsert the ool¡cv number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement mod¡f¡es insurance provided under the following:

COMMERCIAL GENERAL LIABIL¡TY COVERAGE PART

This insurance does not apply to any injury, damage, expense, cost, loss, demand, claim, liab'ility or legal obligation arislng
out of, resulting from or in any way related to actual, alleged or threatened discharge, dispersal, seepage, migration,
release, escape, spill, leak, handling, sale, distribution, manufacture, remediation, disposal, monitoring, testing,
investigation, treatment, neutralization or detoxifìcation of Methyl-Tertiary-Butyl Ether or Methyl-Tert-Butyl Ether ("MTBE");
or any product, substance, or wastes containing MTBE; or any daughter or degrádation products of MTBE.

The addition of this endorsement does not imply that other policy provisions, inc[r.rding but not limited to any pollution
exclusion, do not also exclude coverage for MTBE related injury, damage, expense, cost, loss, liability, or legal obligation.

All otherterms and conditions of this policy remain unchanged.

Authorized Representative

n permrssron nc.,
Case 4:10-cv-02931 Document 1-1
POLICY NUMBER: HDO G24940354
Filed in TXSD on 08/16/10 Page 53 of 57
ENDT. #I2

NON.CONTRIBUTORY ENDORSEMENT FOR ADDITIONAL INSUREDS

Named lnsured Endorsement Number


M-I, L.L.C. L2
Policy Symbol Policy Number Policy Period Effective Date of Endorsement
HDO e24940354 04/0L/20L0 Èo 04/0L/2OLL
lssued By (Name of lnsurance Company)
ACE American fnsurance Company
the policy number. The rqmainder of the information is to be completed onlv when this endorsement is

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

COMMERCIAL GENERAL LIABILITY COVERAGE

Schedule

Oroanization Additional lnsured Endorsement


A1I persons or entities added as
additional insureds through an
endorsement with the term "Additional
Insured" in the tit.le.

(lf no information is filled in, the schedule shall read: "Al! persons or entities added as additional insureds
through an endorseihent with the term ;'Additional lnsured', in the tiile)

For organizations that are listed in the Schedule above that are also an Additional lnsured under an endorsement attached
to this policy, the following is added to Section lV.4.a:

lf other insurance is available to an insured we cover under any of the endorsements listed or described above (the
"Additional lnsured") for a loss we cover under this policy, this inõurance will apply to such loss
on a primary basis ànd
we will not seek contribution from the other insurance available to the Additional lnsured.

Authorized Agent
Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 54 of 57
POLICY NUMBER: HDO G24940354 ENDT. #13

NONOWNED WATERCRAFT EXCEPTION

Named lnsured M-I , &. L. C. Endorsement Number


13
Policy Symbol Policy Number Policy Period Effective Date of Endorsement
HDO c24940354 04/oL/2OL0 to 04/OL/2oLI
lssued By (Name of lnsurance Company
ACE American Insurance Company
lnsert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement mod¡f¡es insurance prov¡ded under the following:

Gommercial General Liability Coverage Form

Subparagraph (2) of Exclusion 2.g of Coverage 1.4., Bodily lnjury and Property Damage t-iáUitity is deteted in its
entirety and replaced by the following:

(2) A watercraft you do not own that is:

(a) Less than 50 feet long; and

(b) Not beíng used to carry persons or property for a charge;

Authorized Agent

LD-5T98 Ptd. ln U.S.A.


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 55 of 57
POLICY NUMBER: HDO G24940354 ENDT. #14

POLLUTION EXCLUSION - COMBINATION EXCEPTION


TIME ELEMENT AND NAMED PERILS

Named lnsured Endorsement Number


M-I, L.L.C. L4
Policy Symbol Policy Number Policy Period Effective Date of Endorsement
HDO e24940354 04/Ot/20L0 to 04/oL/20LL
lssued By (Name of lnsurance Company)
ACE American Insurance Company
lnsertthepolicynumber. Theremainderoftheillformationistobecompletedonlywhenthisendorsementis¡ssuedsubseouenttotheoreoarationofthenoticv

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement replaces any pollution exclusion and amends all insurance provided under the
following:

COMMERCIAL GENERAL LIABILITY COVERAGE FORM

This insurance does not apply to any injury, damage, expense, cost, loss, liability or legal obligation arising out of or in any
way related to "pollution", however caused.

The following definitions are added to the policy:

"Pollution" means the actual, alleged, or potential presence in or introduction into the environment of any "pollutants", if
such "pollutants" have, or are alleged to have, the effect of making the:environment impure, harmful, oi dangerous.
Environment includes any air, land, structure or the air therein, watercourse or water, including underground watér, and
biota.

"Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids,
alkalis, chemicals, bacteria, virus, and waste, as defined herein.

"Waste" means any substance that:

a. is left over, or no longer in use, or discarded;


b. is to be reclaimed, reconditioned or recycled; or
c. has been removed, treated, stored ordisposed of ab partof any environmental remediation effort.

"Hostile fire" means a fire which, during the policy period, becomes uncontrollable or breaks out from where it was intended
to be.

This exclusion does not apply to "Bodily lnjury'or "Property Damage" caused by "pollution" if the "pollution":

1. is both unexpected anO unintenOed from Ìhe standpoint ofthe insured;


:':

2. commenced abruptly and instantaneously and can be clearly identifìed as having commenced entirely at a specific time
on a specific date during the policy period; and

3. is caused ':

a. solely by fire, lightning, explosion, windstorm, vandalism, malicious mischief, riot or civil commotion, sprinkler leakage,
or collision or upset of a motor vehicle or an aircraft or arises out of "your product" included in the "products-compteiãO
operations hazard'; or
b. by any peril other than those listed in subparagraph 3.a. above, provided that the discharge, dispersal, seepage,
migration, release or escape of "pollutants":

(1) is at or from any

permtssron ces age


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 56 of 57

a. premises, site or location wh¡ch is owned by or occup¡ed by, or rented or loaned to, any insured;
or
b. premises, site or location on which any insured or any contractors or subcontractors working directly or indirectly on any
insured's behalf are performing operations if the "pollutants" are brought on or to the premises, site or location in
connection with such operations by such insured, contractor or subcontractor; and

(2) is known by any insured within 72 hours of the commencement of the "pollution"; and

(3) is reported to us within 30 days of the commencement of the "pollution".

Explosion does not include:


1. shock waves caused by aircraft, generally known as "sonic booms";
2. electric arcing;
3. rupture or bursting of rotating or moving parts of machinery caused by centrifugal force or mechanical breakdown;
4. water hammer;
5. rupture, bursting, breaking apart, collapse of pipes, tanks, vessels or containment areas;
6. operation of a pressure release device.
Notwithstanding anything to the contrary in the foregoing paragraphs and regardless of the cause of the "pollution", this
policy shall not apply to:

1. loss of, damage to or loss of use of property directly or indirectly resulting from subsurface operations of the insured,
and/or removal of, loss or damage to subsurface oil, gas or other substance;

2. any injury, damage, expense, cost, loss, liability or legal obligation arising out of or'in, any:'lrr¡ay related to actual or
alleged "pollution" or contamlnation at or from a waste site, meaning the part of any premises, site or location which is or
was at the time used by any insured or by others for the storage, disposal,:processing or treatment of waste of any kind.
Waste site includes but is not limited to any landfìll, pit or dumping ground, treatment,'istorage and disposal facility, lagoon
or pond, drum storage or disposal area, disposal pipe outfall, injection well or any other repository of "waste" of any kind,
whether permitted or not. ,
,, " ,,
Notwithstanding the foregoing, we shall have no duty to defend "rui,", claim or proceeding arising out of or in any way
related to "pollution". "ny

Authorized Agent

LD-12988a (08/04) Reprinted with permission of lnsurance Services Office Page2 of 2


Case 4:10-cv-02931 Document 1-1 Filed in TXSD on 08/16/10 Page 57 of 57
POLICY NUMBER: HDO G24940354 ENDT. #15

PROF ESSIONAL LIABILITY EXCLUSION E NDORSEMENT

Namedlnsured M-I, L.L.C. Endorsement Number


15
Policy Symbol Policy Number HOilCy HeflOO Effective Date of Endorsement
HDO c24940354 04/OL/20L0 to 04/OL/zoLL
lssued By (Name of lnsurance Company)
ACE American Insurance Company
lnsert the policy number. The remainder of the information is to be completed only when th¡s endorsement is issued subsequeni lo the preparation of the policy.

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.


This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE FORM

This insurance does not apply to any damages arising out of any professional services, including, but not limited to,

A. The rendering or failure to render:

1. Medical,surgical,dental,x-ray,nursing,oranyotherhealthserviceortreatment,ortherelatedfurnishing
of food or beverages;

2. Any cosmetic, ear piercing, tonsorial, massage, physiotherapy, chiropody, hearing aid, optical or
optometrical service or treatment;

3. Any legal advice or legal service;


',
4. Any service or advice relating to physical fitness, including seruices or advice in connection with diet,
cardio-vascular fitness, body building or physical training program; or

5. Any accounting, architectural, or engineering service. ,

B. The furnishing or dispensing of drugs or medical, dental or surgical supplies or appliances; or

C. The handling or treatment of dead Uo¿ies ániiremains, including autopsies, organ donation or other
procedures. '

Authorized Agenl

LD-0846 (Ed. 1/89) Ptd. ln U.S.A


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 1 of 74

EXHIBIT A
PilrtZ of 2
Case 4:10-cv-02931 Document 1-2
POLICY NUMBER: HDO G24940354
Filed in TXSD on 08/16/10 Page 2 of 74
ENDT. #16

RADIOACTIVE MATTER EXCLUSION

Named lnsured Endorsement Number


M-I, L.L.C. L6
Policy Symbol Policy Number Policy Period Effective Date of Endorsement
HDO e24940354 04/0L/20L0 to 04/OL/20LL
lssued By (Name of lnsurance Company)
ACE A¡nerican Insurance Company
lnsert the oolicv number. The remainder of the this endorsement is issued subseouent to the oreDaration of the

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement mod¡f¡es all insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

SECTION l. - Coverages, Coverage A. - Bodily injury and Property Damage Liability, 2. - Exclusions, is amended
to add:

Any liability for "bodily injury'' or "property damage" ar¡s¡ng out of the actual,
alleged or threatened exposure of person(s) or property to any radioactive matter
or any form of radiation.

SECTION l. - Coverages, Coverage B. - Personal and Advertising Liability, 2. - Exclusions, is amended to add:

Arising out of the actual, alleged or threatened exposure of person(s) or property to any radioactive matter or any
form of radiation.

Authorized Agent

LD-21733 (01107\ Printed in U.S.A. Page 1 of 1

lncludes copyrighted material of lnsurance Services Office, lnc. with its permission
Case 4:10-cv-02931 Document 1-2
POLICY NUMBER: HDO G24940354
Filed in TXSD on 08/16/10 Page 3 of 74
ENDT. #17

NOTIFICATION OF PREMIUM ADJUSTMENT

Named lnsured Endorsement Number


M-r, r..L.c. L7
Policy Symbol Policy Number Policy Period Effective Date of Endorsement
HDO e24940354 04/OL/20L0 to 04/oL/20LL
lssued By (Name of lnsurance Company)
ACE American fnsurance Company
lnsert the policy number. The rema¡nder of the ¡nformation is to be completed only when this endorsement is ¡ssued subsequent to the Dreoaration of the oolicv.

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement modif¡es insurance provided under the following:

CONTRACTUAL INDEMNITY COVERAGE PART OCCURRENCE CORRIDOR


CONTRACTUAL INDEMNITY COVERAGE PART SLIDING ATTACHMENT
CONTRACTUAL IN DEMNITY COVERAGE PART DEDUCTI BLE REIM BU RSEMENT
COMMERCIAL GENERAL LIABILITY COVERAGE PART :

EXCESS COMMERCIAL GENERAL LIABILITY COVERAGE FORM


BUSINESS AUTO COVERAGE PART
EXCESS COMMERCIAL AUTOMOBILE COVERAGE PART
TRUCKERS COVERAGE PART :

EXCESS TRUCKERS COVER,AGE PART


MOTOR CARRIER GOVERAGE PART
GARAGË COVERAGE PART

For the states and lines of business in which regulatory approval has been granted for the NCCI Large Risk Alternative
Rating Option, the ISO Large Risk Alternative Rating Option, or the independently filed ACE Large Risk Rating plan, the
premiums for this policy will be adjusted in accordance with the Notice of Election, signed by you.

Authorized Agent

age
Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 4 of 74
POLICY NUMBER: HDO c24940354 ENDT. #I8

coMMERGTAL cENERAL
0'âååiü
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED - DESIGNATED


PERSON OR ORGANIZATION

This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

SCHEDULE

Name Of Additional lnsured


Any person or organizaÈion whom you have agreed to include as an additional
insured under a writÈen contract, provided such contract vras execuÈed prior
to the date of loss -

lnformation required to if not shown above, will be shown in the Declarations.

Section ll - Who ls An Insured is amended to include


as an additional insured the person(s) or organization(s)
shown in the Schedule, but only with respect to liability
for "bodily injury", "property damage" or "personal and
advertising injury" caused, in whole or in part, by your
acts or omissions or the acts or omisslons of those acting
on your behalf:

A. ln the peformance of your ongoing operations;:or

B. ln connection with your premises owned by or rented


to you.

cG 20 26 07 04 @ ISO Properties, lnc. , 2004 Page 1 of 'l


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 5 of 74

POLICY NUMBER: HDO G24940354 ENDT. #19

COMMERCIAL G ENERAL LIABI LITY


cG 20 10 07 04

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED - OWNERS, LESSEES OR


CONTRACTORS - SGHEDULED PERSON OR
ORGANIZATION

This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

SCHEDULE

Name Of Additional Insured Person(s)


Or Orqanizationls): Location(s) Of Govered Operations
California Steel Industries, fnc.

lnformation required to complete this Schedule, if not shown above, will be shown in the Declarations.

A. Section ll - Who ls An lnsured is amended to B. With respect to the insurance afforded to


include as an additional insured the person(s) or these additional insureds, the following
organization(s) shown in the Schedule, but only with additional exclusions apply:
respect to liability for "bodily injury", "property
damage" or "personal and advertising injury" This insurance does not apply to "bodily injury''
caused, in whole or in part by: or "property damage" occurring after:

l. Your acts or omissions; or 1. All work, including materials, parts or


equipment furnished in connection with
2. The acts or omissions of those acting on your such work, on the project (other than
behalf; service, maintenance or repairs) to be
performed by or on behalf of the additional
in the performance of your ongoing operations for insured(s) at the location of the covered
the additional insured(s) at the location(s) operations has been completed; or
designated above.
2. That portion of "your work" out of which the
injury or damage arises has been put to its
intended use by any person or
organization other than another contractor
or subcontractor engaged in performing
operations for a principal as a part of the
same project.

cG 20 10 07 04 @ ISO Properties, lnc. , 2004 Page 'l of 1


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 6 of 74

POLICY NUMBER: HDO G24940354 ENDT. #20

COM MERCIAL GENERAL LIABILITY


cG 20 15 07 04

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED - VENDORS


This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILIry COVERAGE PART


PRODUCTS/COM PLETED O PERATIO NS LIABI LITY COVERAG E PART

SCHEDULE

Name Of Additional lnsured Person(s) Or


Oroanizationlsì lVendorì Your Products
Àny Vendor whom you have agreed to TBD
include as an additional insured
under a written contracÈ, prov5.ded
such contract was executed prior to
the date of l-oss.

lnformation required to complete this Schedule. if not shown above. will be shown in the Declarations.

A. Section ll - Who ls An lnsured is amended to c. Any physical or chem¡cal change in the


include as an additional insured any person(s) ,,or product made intentionally by the
organization(s) (referred to below as v-endór) shown vendor;
in the Schedule, but only with respect to "bodily
injury" or "property damage" arising.out: of t'your d. Repackaging, except when unpacked
products" shown in the Schedule whiCh are solely for the purpose of inspection,
distributed or sold in the regular couise of the demonstration, testing, or the
vendor's business, subjecl to the following substitution of parts under instructions
additional exclusions: from the manufacturer, and then
repackaged in the original container;
1. The insurance afforded the vendor does not
apply io: e. Any failure to make such inspections,
adjustments, tests or servicing as the
a. "Bodily injury" or'lproperty damage" for which vendor has agreed to make or normally
the vendor is obligated to pay damages by undertakes to make in the usual course
reason of the assumption of liability in a of business, in connection with the
contract or agreement. This exclusion does distribution or sale of the products;
not apply to liability for damages that the
vendor would have in the absence of the f. Demonstration, installation, servicing or
contract or agreement. repair operations, except such
operations performed at the vendor's
b. Any express warranty unauthor¡zed by you; premises in connection with the sale of
the product;

cG 20 15 07 04 @ ISO Properties, lnc. , 2004 Page 1 o'f 2


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 7 of 74

g. Products which, after distribution or sale by (2) Such inspections, adjustments, tests or
you, have been labeled or relabeled or used servicing as the vendor has agreed to
as a container, part or ingredient of any other make or normally undertakes to make in
thing or substance by or for the vendor; or the usual course of business, in
connection with the distribution or sale of
h. "Bodily injury" or "property damage" arising out the products.
of the sole negligence of the vendor for its
own acts or omissions or those of its 2. This insurance does not apply to any insured
employees or anyone else acting on its person or organization, from whom you have
behalf. However, this exclusion does not acquired such products, or any ingredient, part
apply to: or container, entering into, accompanying or
containing such products.
(1) The exceptions contained in Sub-
paragraphs d. or f.; or

Page 2 of 2 @ ISO Properties, lnc.,20M cG 20 15 07 04


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 8 of 74

POLICY NUMBER: HDO G249403s4 ENDT. #21

COMMERCIAL GENERAL LIABILITY


cG21 70 01 08

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT GAREFULLY.

CAP ON LOSSES FROM CERTIFIED AGTS OF TERRORISM


This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART


LIQUOR LIABILITY COVERAGE PART
OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COM PLETED OPERATI ONS LIABI LITY COVERAG E PART
RAILROAD PROTECTIVE LIABILITY COVERAGE PART
UNDERGROUND STORAGE TANK POLICY

lf aggregate insured losses attributable to terrorist "Certified act of terrorism'l means an act that is certi-
acts certified under the federal Terrorism Risk lnsur- fied by the Secretary of the Treasury, in concurrence
ance Act exceed $100 billion in a Program year with the Secretary of State and the Attorney General
(January 1 through December 31) and we have met of the United States, to be an act of terrorism pursu-
our insurer deductible under the Terrorism Risk ln- ant to the féderal Terrorism Risk lnsurance Act. The
surance Act, we shall not be liable for the payment of criteria contained in the Terrorism Risk lnsurance Act
any portion of the amount of such losses that ex- for a I'certified act of terrorism" include the following:
ceeds $100 billion, and in such case insured losses
up to that amount are subject to pro rata allocation in
l. The act resulted in insured losses in excess of 95
million in the aggregate, attributable to all types of
accordance with procedures established by the Sec-
insurance subject to the Terrorism Risk lnsurance
retary of the Treasury. ,:Act; and
2. The act is a violent act or an act that is dangerous
to human life, property or infrastructure and is
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.

cG21 70 01 08 @ ISO Properties, |nc.,2007 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 9 of 74

POLICY NUMBER: HDO G24940354 ENDT. #22

COMMERCIAL GENERAL LIABILITY


cG 24 17 10 01

THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY.

CONTRACTUAL LIABILITY - RAILROADS


This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

SCHEDULE

Scheduled Railroad: Designated Job Síte:


!Íhere required by written contract, provided
such contract !'ras executed prior to the date
of loss.

(lf no entry appears above, information required to complete this endorsement will be shown in the Declarations
as applicable to this endorsement.)

With respect to operations performed for, or affecting, Paragraph f. does not include that part of any
a Scheduled Railroad at a Designated Job Site, the contract or agreement:
definition of "insured contract" in the Definitions sec-
tion is replaced by the following:
(1) That indemnifies an architect, engineer or
surveyor for injury or damage arising out
9. "lnsured Contract" means: of:
a. A contract for a lease of premises. However, (a) Preparing, approving or failing to pre-
that portion of the contract for a lease of prem- pare or approve maps, shop drawings,
ises that indemnifies any person or organiza- opinions, reports, surveys, field orders,
tion for damage by fire to premises while change orders or drawings and specifi-
rented to you or temporarily occupied by you cations; or
with permission of the owner is not an "insured
contract";
(b) Giving directions or instructions, or
failing to give them, if that is the primary
b. A sidetrack agreement; cause of the injury or damage;
c. Any easement or license agreement; (2) Under which the insured, if an architect,
d. An obligation, as required by ordinance, to engineer or surveyor, assumes liability for
indemnify a municipality, except in connection an injury or damage arising out of the in-
with work for a municipality; sured's rendering or failure to render pro-
fessional services, including those listed in
e. An elevator maintenance agreement; Paragraph (1) above and supervisory, in-
f. That part of any other contract or agreement spection, architectural or engineering activi-
pertaining to your business (including an in- ties.
demnification of a municipality in connection
with work performed for a municipality) under
which you assume the tort liability of another
party to pay for "bodily injury" or "property
damage" to a third person or organization. Tort
liability means a liability that would be imposed
by law in the absence of any contract or
agreement.

cG 24 17 10 01 O ISO Properties, lnc., 2000 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 10 of 74

POLICY NUMBER: HDO G24940354 ENDT. #23


COMMERCIAL GENERAL LIABILITY
cG 02 24 10 93

THIS ENDORSEMENT GHANGES THE POLICY. PLEASE READ IT CAREFULLY.

EARLIER NOTICE OF CANCELLATION


PROVIDED BY US
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART


LIQUOR LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COM PLETED OPERATI ONS LIABI LITY COVERAGE PART

SCHEDULE

Number of Days' Notice 30

(lf no entry appears above, information required to complete this Schedule will be shown in the Declarations as
applicable to this endorsement.)

For any statutorily permitted reason other than nonpayment of premium, the number of days required for notice
of cancellation, as provided in paragraph 2. of either the CANCELLATION Common Policy Condition or as
amended by an applicable state cancellation endorsement, is increased to the number of days shown in the
Schedule above.

CG 02 241093 Copyright, lnsurance Services Office, lnc., 1992 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 11 of 74

POLICY NUMBER: HDO c24940354 ENDT. #24

COMMERCIAL GENERAL LIABILITY


cG21471207
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

EMPLOYMENT.RELATED PRACTICES EXCLUSION


This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

A. The following exclusion is added to paragraph 2., B. The following exclusion is added to paragraph 2.,
Exclusions of Section I - Goverage A - Bodily Exclusions of Section I - Goverage B per-
lnjury And Property Damage Liability: sonal And Advertising tnjury Liability:
-
This insurance does not apply to: This insurance does not apply to:
"Bodily injury" to: "Personal and advertising injury" to:
(1) A person arising out of any: (1) A person arising out of any:
(a) Refusalto employ that person; (a) Refusal to empioy that person;
(b) Termination of that person's employment; (b) Terminaiøn of that person's employment;
or or :
":'
(c) Employment-related practices, policies, (c) Employment-related practices, policies,
acts or omissions, such as coercion, demo- acts or:omissions, such as coercion, demo-
tion, evaluation, reassignment, discipline, , tion, evaluation, reassignment, discipline,
defamation, harassment, humiliation, dis- defamation, harassment, humiliation, dis-
crimination or malicious prosecution di- crimination or malicious prosecution di-
rected at that person; or rected at that person; or
(2) The spouse, child, parent, brother or sister of (2) The spouse, child, parent, brother or sister of
that person as a consequence of "bodily injury" that person as a consequence of "personal and
to that person at whom any of the employment- advertising injury" to that person at whom any
related practices described in paragraphs (a), of the employment-related practices describeð
(b), or (c) above is directed. in Paragraphs (a), (b), or (c) above is directed.
This exclusion applies: This exclusion applies:
(1) Whether the injury-causing event described in (1) Whether the injury-causing event described in
Paragraphs (a), (b) or (c) above occurs before Paragraphs (a), (b) or (c) above occurs before
employment, during employment or after em- employment, during employment or after em-
ployment of that person; ployment of that person;
(2) Whether the insured may be liable as an em- (2) Whether the insured may be liable as an em-
ployer or in any other capacity; and ployer or in any other capacity; and
(3) To any obligation to share damages with or (3) To any obligation to share damages with or
repay someone else who must pay damages repay someone else who must pay damages
because of the injury. because of the injury.

cG 21 47 1207 O ISO Properties, lnc., 2006 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 12 of 74

POLICY NUMBER: HDO G24940354 ENDT. #25

COMMERCIAL GENERAL LIABILITY


cG21 7301 08

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

EXCLUSION OF CERTIFIED ACTS OF TERRORISM


This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART


LIQUOR LIABILITY COVERAGE PART
OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRO DUCTS/COM PLETED OPERATI ONS LIAB LITY COVERAG E PART
I

RAILROAD PROTECTIVE LIABILITY COVERAGE PART


UNDERGROUND STORAGE TANK POLICY

A. The following exclusion is added: 2. "Certified act of terrorism" means an act that is
This insurance does not apply to:
certified by the:Secretary of the Treasury, in
concurrence with'the Secretary of State and
TERRORISM the Attorney General of the United States, to
"Any injury or damage" arising, directly or indi- be an act of terrorism pursuant to the federal
rectly, out of a "certified act of terrorism". Terrorism Risk lnsurance Act. The criteria con-
tained in the Terrorism Risk lnsurance Act for
B. The following definitions are added:
g "certified act of terrorism" include the follow-
1. For the purposes of this endorsement, "any tng:
injury or damage" means any injury or damage
covered under any Coverage Part to which this
a. The act resulted in insured losses in excess
of $5 million in the aggregate, attributable
endorsement is applicable, and includes but is to all types of insurance subject to the Ter-
not limited to "bodily injury", "property dam- rorism Risk lnsurance Act; and
age", "personal and advertising injury", j'injury"
or "environmental damage" as may'be defined b. The act is a violent act or an act that is
in any applicable Coverage Part. dangerous to human life, property or infra-
structure and is 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 con-
duct of the United States Government by
coercion.

cG21 7301 08 O ISO Properties, lnc.,2O07 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 13 of 74

POLICY NUMBER: HDO G24940354 ENDT. #26

COMMERCIAL GENERAL L¡ABILITY


cG 21 35 10 0r

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

EXCLUSION - COVERAGE C - MEDICAL PAYMENTS


This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

SCHEDULE

And Location Of Premises Or Classification:

(lf no entry appears above, information required to complete this endorsement will be shown in the Declarations
as applicable to this endorsement.)

With respect to any premises or classification shown 2. The following is added to Section I - Supple-
in the Schedule: mentary Payments:
1. Section I - Coverage C - Medical Payments h. Expenses incurred by the insured for first
does not apply and none of the references to it aid administered to others at the time of an
in the Coverage Part apply: and accident for "bodily injury" to which this in-
surance applies.

cG 21 35 10 01 O ISO Properties, lnc., 2000 Page 1 of 1


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 14 of 74

POLICY NUMBER: HDO c24940354 ENDT. #27


COMMERCIAL GENERAL LIABILITY
cG 22 43 07 98

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

EXCLUSION - ENGINEERS, ARCHITECTS OR


SU RVEYORS PROFESSIONAL LIABI LITY
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART.

The following exclusion is added to Paragraph 2., Professional services include:


Exclusions of Section I - Goverage A - Bodily
lnjury And Property Damage Liability and 1. The preparing, approving, or failing to prepare or
approve, maps, shop drawings, opinions,
Paragraph 2., Ëxclusions of Section I - Goverage reports, surveys, field orders, change orders or
B - Personal And Advertising Injury Liability::
drawings and specifications; and
This insurance does not apply to "bodily injury",
"property damage" or "personal and advertising 2. Supervisory, inspection, architectural or engineer-
injury" arising out of the rendering of or failure to ing activities.
render any professional seruices by you or any
engineer, architect or surveyor who is either
employed by you or performing work on your behalf
in such capacity.

cG 22 43 07 98 Copyright, lnsurance Services Qffice, lnc., 1997 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 15 of 74

POLICY NUMBER: HDO G24940354 ENDT. #28


COMMERCIAL GENERAL LIABILITY
cG 22 33 07 98

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

EXCLUSION - TESTING OR CONSULTING


ERRORS AND OMISSIONS
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

The following exclusion is added to Paragraph 2., 2. The reporting of or reliance upon any such test,
Exclusions of Section I - Coverage A - Bodily evaluation, consultation or advice; or
lnjury And Property Damage Liability and Para- 3, An error, omission, defect or deficiency in ex-
graph 2., Exclusions of Section I - Goverage B -
perimental data or the insured's interpretation of
Personal And Advertising lnjury Liability:
that data.
This insurance does not apply to "bodily injury", "prop-
erty damage" or "personal and adverlising injury"
arising out of:
1. An error, omission, defect or deficiency in:
a. Any test performed; or
b. An evaluation, a consultation or advice given,
by or on behalf of any insured;

cG 22 33 07 98 Copyright, lnsurance Services Office, lnc., 1997 Page I of 1


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 16 of 74

POLICY NUMBER: HDO G24940354 ENDT. #29

COMMERCIAL GENERAL LIABILITY


cG 21 67 12 04

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

FUNGI OR BACTERIA EXCLUSION


This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

A. The following exclusion is added to Paragraph 2. B. The following exclusion is added to Paragraph 2.
Exclusions of Section I - Goverage B - Personal
Exclusions of Section I - Coverage A - Bodily
And Advertising lnjury Liability:
Injury And Property Damage Liability:
2. Exclusions 2. Exclusions
This insurance does not apply to: This insurance does not apply to:
Fungi Or Bacteria Fungi Or Bacteria
a. "Bodily injury" or "property damage" which a. "Personal and advertising injury" which
would not have occurred, in whole or in would nót have taken place, in whole or in
part, but for the actual, alleged or threat- part, but for the actual, alleged or threat-
ened inhalation of, ingestion of, contact ened inhalation of, ingestion of, contact
with, exposure to, existence of, or presence with, exBosure to, existence of, or presence
of, any "fungi" or bacteria on or within a of any "fungi" or bacteria on or within a
building or structure, including its contents, building or structure, including its contents,
regardless of whether any other cause,
,, regardless of whether any other cause,
event, material or product contributed con- event, material or product contributed con-
currently or in any sequence to such injury , currently or in any sequence to such injury.
or damage. b. Any loss, cost or expense arising out of the
b. Any loss, cost or expenses arising out of abating, testing for, monitoring, cleaning
the abating, testing for, monitoring,, clean- up, removing, containing, treating, detoxify-
ing up, removing, containing, treating; de- ing, neutralizing, remediating or disposing
toxifying, neutralizing, remediating or dis- of, or in any way responding to, or assess-
posing of, or in any way responding to, or ing the effects of, "fungi" or bacteria, by
assessing the effects of, 'lfungi,!'or bacteria, any insured or by any other person or en-
by any insured or by any other'person or tity.
entitY. C. The following definition is added to the Defini-
This exclusion does not aþþly to any "fungi" or tions Section:
bacteria that are, are on, or are contained in, a "Fungi" means any type or form of fungus, includ-
good or product íntended for bodily consump- ing mold or mildew and any mycotoxins, spores,
tion. scents or byproducts produced or released by
fungi.

cG 21 67 12 04 @ ISO Properties, lnc., 2003 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 17 of 74

POLICY NUMBER: HDO G24940354 ENDT. #30

COMMERCIAL GENERAL LIABILITY


cG 227410 01

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

LIMITED GONTRACTUAL LIABILITY COVERAGE FOR


PERSONAL AND ADVERTISING INJURY
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

SCHEDULE

Designated Contract Or Agreement:

(lf no entry appears above, information required to complete this endorsement will be shown in the Declarations
as applicable to this endorsement.)

A. With respect to the contract or agreement desig- (2) Liability for "personal and advertising
nated in the Schedule above, Subparagraph e. of injury" if:
Paragraph 2. Exclusions of Section I - Cover- (a) The liability pertains to your busi-
age B - PersonalAnd Advertising lnjury Liabil- ness and is assumed in the des-
ity is replaced by the following: ignated contract or agreement
2. Exclusions shown in the Schedule in which
This insurance does not apply to:
you assume the tort liability of
another. Tort liability means a li-
e. Contractual Liability ability that would be imposed by
"Personal and advertising injury" for which law in the absence of any con-
the insured has assumed liability in a con- tract or agreement;
tract or agreement. (b) The "personal and advertising
This exclusion does not apply to: injury" occurs subsequent to the
execution of the designated con-
(l) Liability for damages that the insured tract or agreement shown in the
would have in the absence of the
Schedule; and
contract or agreement; or
(c) The "personal and advertising
injury" arises out of the offenses
of false arrest, detention or im-
prisonment.

cG 2274 10 01 O ISO Properties, lnc., 2001 Page 1 of2 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 18 of 74

Solely for the purposes of liability so as- 5. The indemnitee and the insured ask us to
sumed in such designated contract or conduct and control the defense of that indem-
agreement, reasonable attorney fees nitee against such "suit" and agree that we can
and necessary litigation expenses in- assign the same counsel to defend the insured
curred by or for a party other than an in- and the indemnitee; and
sured are deemed to be damages be- 6. The indemnitee:
cause of "personal injury" described in
Paragraph A.2.e.(2)(c) above, provided: a. Agrees in writing to:
(i) Liability to such party for, or for (1) Cooperate with us in the investigation,
the cost of, that party's defense settlement or defense of the "suit";
has also been assumed in the (2) lmmediately send us copies of any
same designated contract or demands, notices, summonses or legal
agreement; and papers received in connection with the
(ii) Such attorney fees and litigation "suit";
expenses are for defense of that (3) Notify any other insurer whose coverage
party against a civil or alternative is available to the indemnitee; and
dispute resolution proceeding in
which damages to which this in-
(4) Cooperate with us with respect to coor-
surance applies are alleged.
dinating other,applicable insurance
available to the indemnitee; and
B. With respect to the contract or agreement desig-
nated in the Schedule above, the following is b. Provides us with written authorization to:
added to Section I - Supplementary Payments (1) Obtain records and other information
- Coverages A And B: related to the "suit"; and
lf we defend an insured against a "suit" and an in- (2) Conduct and control the defense of the
demnitee of the insured is also named as a party indemnitee in such "suit".
to the "suit", we will defend that indemnitee if all of So long as the above conditions are met, attor-
the following conditions are met: neys fees incurred by us in the defense of that in-
1. The "suit" against the indemnitee seeks dam- demnitee, necessary litigation expenses incurred
ages for which the insured has assumed tort li- by,us and necessary litigation expenses incurred
ability of the indemnitee in a designated con- by the indemnitee at our request will be paid as
tract or agreement shown in the Schedule, if Supplementary Payments. Notwithstanding the
such liability pertains to your business. Tort li- provisions of Paragraph A.2.e.(2) of this en-
ability means a liability that would be imposed dorsement, such payments will not be deemed to
by law in the absence of any contract or be damages for "personal and advertising injury"
agreement; as described in Paragraph 4.2.e.(2)(c) above and
will not reduce the limits of insurance.
2. This insurance applies to such liability as-
sumed by the insured; Our obligation to defend an insured's indemnitee
and to pay for attorneys fees and necessary litiga-
3. The obligation to defend, or the cost of the
tion expenses as Supplementary Payments ends
defense of, that indemnitee, has also been as-
when:
sumed by the insured in the same designated
contract or agreement; 1. We have used up the applicable limit of insur-
4. The allegations in the "suit" and the informa- ance in the payment of judgments or settle-
ments; or
tion we know about the offense are such that
no conflict appears to exist between the inter- 2. The conditions set forth above, or the terms of
ests of the insured and the interests of the in- the agreement described in Paragraph 6.
demnitee; above, are no longer met.

Page 2 of 2 @ ISO Properties, lnc., 2001 cG22741001 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 19 of 74

POLICY NUMBER: HDO G24940354 ENDT. #31

COMMERCIAL GENERAL LIABILITY


cG 21 96 03 0s

THIS ENDORSEMENT GHANGES THE POLICY. PLEASE READ IT CAREFULLY.

SILICA OR SILICA.RELATED DUST EXCLUSION

This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

A. The following exclusion is added to Paragraph 2., B. The following exclusion is added to Paragraph 2.,
Exclusions of Section | - Coverage A
lnjury And Property Damage Liability:
- Bodily Exclusions of Section I - Coverage B - Per-
sonal And Advertising Injury Liability:
2. Exclusions 2. Exclusions
This insurance does not apply to: This insurance does not apply to:
Silica Or Silica-Related Dust Silica Or Silica-Related Dust
a. "Bodily injury" arising, in whole or in part, a. "Personal and advertising injury" arising, in
out of the actual, alleged, threatened or wholê,or in part, out of the äctlal, alleled,
suspected inhalation of, or ingestion of, "sil- threatened or suspected inhalation of, in-
ica" or "silica-related dust". gestion of, contact with, exposure to, exis-
b. "Property damage" arising, in whole or in tence of, or presence of, "silica" or "silica-
part, out of the actual, alleged, threatened related dust".
or suspected contact with, exposure to, ex- b. Any loss, cost or expense arising, in whole
istence of, or presence of, "silica" or "silica- or in part, out of the abating, testing for,
related dust". monitoring, cleaning up, removing, contain-
c. Any loss, cost or expense arising, in whole ing, treating, detoxifying, neutralizing,
or in part, out of the abating, testing for, remediating or disposing of, or in any way
monitoring, cleaning up, removing, contain- responding to or assessing the effects of,
ing, treating, detoxifying, neutralizing, "silica" or "silica-related dust", by any in-
remediating or disposing of, or in any way sured or by any other person or entity.
responding to or assessing the effects of, C. The following definitions are added to the Defini-
"silica" or "silica-related dust", by any in- tions Section:
sured or by any other person or entity.
1. "Silica" means silicon dioxide (occurring in
crystalline, amorphous and impure forms), sil-
ica particles, silica dust or silica compounds.
2. "Silica-related dust" means a mixture or com-
bination of silica and other dust or particles.

cG 21 96 03 05 @ ISO Properties, |nc.,2004 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 20 of 74

POLICY NUMBER: HDO G24940354 ENDT. #32


COM M ERCIAL GENERAL LIABILITY
cG 24 04 05 09

WAIVER OF TRANSFER OF RIGHTS OF RECOVERY


AGAINST OTHERS TO US

This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART


PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART

SCHEDULE

Name Of Person Or Organization:


Any person or organization against whom you have agreed to waive your right of
recovery in a wriÈten contract, provided such contract vras executed prior to the
date of loss.
lnformation required to complete this Schedule, if not shown above, will be shown in the Declarations.

The following is added to Paragraph 8. Transfer Of


Rights Of Recovery Against Others To Us of
Section lV - Conditions:

We waive any right of recovery we may have against


the person or organization shown in the Schedule
above because of payments we make for injury or
damage arising out of your ongoing operations or
"your work" done under a contract with that person
or organization and included in the "products-
completed operations hazard". This waiver applies
only to the person or organization shown in the
Schedule above.

cG 24 04 05 09 @ lnsurance Services Office, lnc., 2008 Page'l of 1


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 21 of 74
POLICY NUMBER: HDO G24940354 ENDT. #33

rL 09 85 01 08

THIS ENDORSEMENT IS ATTACHED TO AND MADE PART OF YOUR POLICY IN


RESPONSE TO THE DISCLOSURE REQUIREMENTS OF THE TERRORISM RISK
INSURANCE ACT. THIS ENDORSEMENT DOES NOT GRANT ANY COVERAGE OR
CHANGE THE TERMS AND CONDITIONS OF ANY COVERAGE UNDER THE POLICY.

DISCLOSURE PURSUANT TO TERRORISM RISK


INSURANCE ACT
SCHEDULE

Terrorism Premium (Certified Acts) $ 0

This premium is the total Certified Acts premium attributable to the following Coverage Part(s), Goverage
Form(s) and/or Policy(s):

Additional information, if any, concerning the terrorism premium:

lnformation reouired to comolete this Schedule. if not shown above. will be shown in the Declarations.

A. Disclosure Of Premium C-'Cap On lnsurer Participation ln Payment Of


Terrorism Losses
ln accordance with the federal Terrorism Risk
lnsurance Act, we are required to provide you with a lf aggregate insured losses attributable to terrorist
notice disclosing the portion of your premium, if any, acts certified under the Terrorism Risk lnsurance
attributable to coverage for terrorist acts certifìed Act exceed $100 billion in a Program Year
Act. The portion
under the Terrorism Risk lnsurance (January 1 through December 31) and we have met
of your premium attributable to such coverage is our insurer deductible under the Terrorism Risk
shown in the Schedule of this endorsement or in the lnsurance Act, we shall not be liable for the
policy Declarations. payment of any portion of the amount of such
losses that exceeds $100 billion, and in such case
B. Disctosure Of Federal Participation ln Payment Of insured losses up to that amount are subject to pro
Terrorism Losses rata allocation in accordance with procedures
established by the Secretary of the Treasury.
The United States Government, Department of the
Treasury, will pay a share of terrorism losses insured
under the federal program. The federal share equals
85% of that portion of the amount of such insured
losses that exceeds the applicable insurer retention.
However, if aggregate insured losses attributable to
terrorist acts ceÉifìed under the Terrorism Risk
lnsurance Act exceed $100 billion in a Program Year
(January 1 through December 3'l ), the Treasury shall
not make any payment for any portion of the amount
of such losses that exceeds $100 billion.

tL 09 85 01 08 @ ISO Properties, lnc., 2007 Page 1 of 1


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 22 of 74
POLICY NUMBER: HDO G24940354 ENDT. #34

TRADE OR ECONOMIC SANCTIONS ENDORSEMENT

Named lnsured Endorsement Number


M-I, L.L.C. 34
Policy Symbol Policy Number Policy Period Effective Date of Endorsement
HDO e24940354 04/0L/20L0 to 04/0L/2OLL
lssued By (Name of lnsurance Company)
ACE Àmerican Insurance Company
when thís endorsement is issued subseouent to the oreDaration of the

THIS ENDORSEMENT GHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This insurance does not apply to the extent that trade or economic sanctions or other laws or regulations prohibit
us from providing insurance, including, but not limited to, the payment of claims. All other terms and conditions of
policy remain unchanged.

Authorized Agent

ALL-21101 (1 1i06) Printed in U.S.A. Page 1 of 'l


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 23 of 74

POLICY NUMBER: HDO G24940354 ENDT. #35

tL 00 21 09 08

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

NUCLEAR ENERGY LIABILITY EXGLUSION


ENDORSEMENT
(Broad Form)

This endorsement modifies insurance provided under the following:

COMMERCIAL AUTOMOBILE COVERAGE PART


COMMERCIAL GENERAL LIABILITY COVERAGE PART
FARM COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
MEDICAL PROFESSIONAL LIABILITY COVERAGE PART
OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COM PLETED OPERATI ONS LIAB I LITY COVERAGE PART
RAILROAD PROTECTIVE LIABILITY COVERAGE PART
UNDERGROUND STORAGE TANK POLICY

L The insurance does not apply: B. Under any Medical Payments coverage, to
A. Under any Liability Coverage, to "bodily injury" expenses incurred with respect to "bodily in-
jury", resulting from the "hazardous propefties"
or "property damage":
of "nuclear material" and arising out of the op-
(1) With respect to which an "insured" under eration of a "nuclear facility" by any person or
the policy is also an insured under a nu- organization.
clear energy liability policy issued by Nu-
clear Energy Liability lnsurance Associa- C. Under any Liability Coverage, to "bodily injury"
tion, Mutual Atomic Energy Liability or "property damage" resulting from "hazard-
ous properties" of "nuclear material", if:
Underwriters, Nuclear lnsurance Associa-
tion of Canada or any of their successors, (1) The "nuclear material" (a) is at any "nuclear
or would be an insured under any such pol- facility" owned by, or operated by or on be-
icy but for its termination upon exhaustion half of, an "insured" or (b) has been dis-
of its limit of liability; or charged or dispersed therefrom;
(2) Resulting from the "hazardous properties" (2) The "nuclear material" is contained in
of "nuclear material" and with respect to "spent fuel" or "waste" at any time pos-
which (a) any person or organization is re- sessed, handled, used, processed, stored,
quired to maintain financial protection pur- transported or disposed of, by or on behalf
suant to the Atomic Energy Act of 1954, or of an "insured"; or
any law amendatory thereof, or (b) the "in- (3) The "bodily injury" or "property damage"
sured" is, or had this policy not been issued arises out of the furnishing by an "insured"
would be, entitled to indemnity from the of services, materials, parts or equipment
United States of America, or any agency in connection with the planning, construc-
thereof, under any agreement entered into tion, maintenance, operation or use of any
by the United States of America, or any "nuclear facility", but if such facility is lo-
agency thereof, with any person or organi- cated within the United States of America,
zation. its territories or possessions or Canada, this
exclusion (3) applies only to "property
damage" to such "nuclear facility" and any
property thereat.

tL 00 21 09 08 O ISO Properties, lnc.,2007 Pagel of2 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 24 of 74

(c) Any equipment or device used for the


2. As used in this endorsement: processing, fabricating or alloying of "spe-
"Hazardous properties" includes radioactive, toxic cial nuclear material" if at any time the total
or explosive properties. amount of such material in the custody of
the "insured" at the premises where such
"Nuclear material" means "source material", "spe- equipment or device is located consists of
cial nuclear material" or "by-product material". or contains more than 25 grams of pluto-
"Source material", "special nuclear material", and nium or uranium 233 or any combination
"by-product material" have the meanings given thereof, or more than 250 grams of ura-
them in the Atomic Energy Act of 1954 or in any nium 235;
law amendatory thereof. (d) Any structure, basin, excavation, premises
"Spent fuel" means any fuel element or fuel com- or place prepared or used for the storage or
ponent, solid or liquid, which has been used or disposal of "waste";
exposed to r.adiation in a "nuclear reactor". and includes the site on which any of the forego-
"Waste" means any waste material (a) containing ing is located, all operations conducted on such
"by-product material" other than the tailings or site and all premises used for such operations.
wastes produced by the extraction or concentra- "Nuclear reactor" means any apparatus designed
tion of uranium or thorium from any ore processed or used to sustain nuclear' fission in a self-
primarily for its "source material" content, and (b) supporting chain reaction or to contain a critical
resulting from the operation by any person or or- mass of fissionable material.
ganization of any "nuclear facility" included under
the first two paragraphs of the definition of "nu- "Property damager: includes all forms of radioac-
clear facility". tive contamination of property.
"Nuclear facility" means:
(a) Any "nuclear reactor";
(b) Any equipment or device designed or used
for (1) separating the isotopes of uranium
or plutonium, (2) processing or utilizing
"spent fuel", or (3) handling, processing or
packaging "waste";

Page 2 of 2 O ISO Properties, |nc.,2007 rL0021 0908 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 25 of 74

POLICY NUMBER: HDO G24940354 ENDT. #36

COMMERGIAL GENERAL LIABILITY


cG 21 30 05 09
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ALASKA RECORDING AND DISTRIBUTION OF MATERIAL


OR INFORMATION IN VIOLATION OF LAW EXCLUSION
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

A. Exclusion q. underParagraph 2. Exclusions of B. Exclusion p. under Paragraph 2. Exclusions of


Section I - Coverage A - Bodily lnjury And Section I - Coverage B - Personal And Adver-
Property Damage Liability is replaced by the fol- tising lnjury Liability is reptaced by the following:
lowing:
2. Exclusions
2. Exclusions
This insurance does not apply to:
This insurance does not apply to:
p. Recordíng And Distribution Of Material
q. Recording And Distribution Of Material Oi lnformation In Violation Of Law
Or lnformation ln Violation Of Law
"Personal,and advertising injury" arising out
"Bodily injury" or "property damage" arising of ány action or omission that violates or is
out of any action or omission that violates alleged to violate:
or is alleged to violate:
(1) The Telephone Consumer protection
(l) The Telephone Consumer protection Act (TCPA), including any amendment
Act (TCPA), including any amendment of or addition to such law; or
of or addition to such law; or
(21 The CAN-SPAM Act of 2003, inctuding
(2) The CAN-SPAM Act of 2003, inctuding , any amendment of or addition to such
any amendment of or addition to such law; or
law;
(3) The Fair Credit Reporling Act (FCRA),
(3) The Fair Credit Reporting Act (FCRA), and any amendment of or addition to
and any amendment of or: addition to such law, including the Fair and Accu-
such law, including the Fair and Accu- rate Credit Transaction Act (FACTA); or
rate Credit Transaction Act (FACTA); or
(a) Any federal, state or local statute, ordi-
(a) Any federal, state or local statute, ordi- nance or regulation, other than the
nance or regulation, other than the TCPA, CAN-SPAM Act of 2003 or
TCPA, CAN-SPAM Act of 2003 or FCRA and their amendments and addi-
FCRA and their amendments and addi- tions, that addresses, prohibits, or limits
tions, that addresses, prohibits, or límits the printing, dissemination, disposal,
the printing, dissemination, disposal, collecting, recording, sending, transmit-
collecting, recording, sending, transmit- ting, communicating or distribution of
ting, communicating or distribution of material or information.
material or information.

cG 21 30 05 09 @ lnsurance Services Office, lnc., 2008 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 26 of 74

POLICY NUMBER: HDO c24940354 ENDT. #37

COMMERCIAL GENERAL LIABILITY


cG 26 70 r0 01

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ALASKA CHANGES - DEFINITION OF METATAG


This endorsement modifíes insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

A. The following is added to Section V


Definitions:
-
"Metatag" means hidden or embedded text or code that is not seen by persons viewing the web site, but that
operates to attract search engines to that site.
B. Exclusion l. under Paragraph 2. of Section I - Goverage B - Personal And Advertising lnjury is replaced
by the following:
2. Exclusions
This insurance does not apply to:
l. Unauthorized Use Of Another's Name Or Product
:

"Personal and advertising injury" arising out of the unauthorized use of another's name or product in
your e-mail address, domain name or "metatag", or any other similar tactics to mislead another's
potential customers.

cG 26 70 10 01 @ ISO Properties, lnc., 200'l Pagel ofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 27 of 74

POLICY NUMBER: HDO G24940354 ENDT. #38

COMMERCIAL GENERAL LIABILITY


cG 26 97 03 06

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ALASKA WAR LIABILITY EXCLUSION


This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

Paragraph 2., Exclusions of


A. Exclusion i. under B. Exclusion o. under Paragraph 2., Exclusions of
Section I - Coverage A - Bodily lnjury And Section I - Coverage B - Personal And Adver-
Property Damage Liability is replaced by the fol- tising lnjury Liability is replaced by the follow-
lowing: ing:
2. Exclusions 2. Exclusions
This insurance does not apply to: This insurance does not apply to:
i. War o. War
"Bodily injury" or "property damage", how- "Personal iànd advertising injury", however
ever caused, arising out of: caused, arising out of:
(1) War, including undeclared or civil war; 1t¡ War, inclùding undeclared or civil war;
or Of ,:,

(2) Warlike action by a military force, in- (2) Warlike action by a military force, in-
cluding action in hindering or defending ':' cluding action in hindering or defending
against an actual or expected attack, by against an actual or expected attack, by
any government, sovereign or other au- any government, sovereign or other au-
thority using military personnel or other , thority using military personnel or other
agents; or ' agents; or
(3) Insurrection, rebellion, revolution, (3) lnsurrection, rebellion, revolution,
usurped power, or action taken by gov- usurped power, or action taken by gov-
ernmental authority in hindering or de- ernmental authority in hindering or de-
fending against any of these. fending against any of these.
c. Exclusion h. under Paragraph 2., Exclusions of
Section I - Coverage C - Medical Payments
does not apply. Medical payments due to war are
now subject to Exclusion g. of Paragraph 2., Ex-
clusions of Section I - Goverage C - Medical
Payments since "bodily injury" arising out of war
is now excluded under Coverage A.

cG 26 97 03 06 O ISO Properties, lnc., 2005 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 28 of 74

POLICY NUMBER: HDO G24940354 ENDT. #39

rL 01 21 06 03

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ALASKA CHANGES - ATTORNEY'S FEES


This endorsement modifies insurance provided under the following:

COMMERCIAL AUTOMOBI LE COVERAGE PART


COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL LIABILITY UMBRELLA COVERAGE PART
COMMERCIAL PROPERTY _ LEGAL LIABILITY COVERAGE FORM
COMMERCIAL PROPERTY - MORTGAGE HOLDER'S ERRORS AND OMISSIONS COVERAGE FORM
EM PLOYMENT-RELATED PRACTICES LIAB LITY COVERAGE PART
I

FARM COVERAGE PART


FARM UMBRELLA LIABILITY POLICY
LIQUOR LIABILITY COVERAGE PART
OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART
:

PROFESSIONAL LIABILITY COVERAGE PART


RAILROAD PROTECTIVE LIABILITY COVERAGE PART

SCHEDULE

Attorney's Fees
for a Judoment of $ Additional Premium $
(lf no entry appears above, information required to complete this endorsement will be shown in the Declarations
as applicable to this endorsement.)

ln any "suit" we defend in Alaska, our obligation un- B. However, if a premium and a judgment amount
der Supplementary Payments to pay all costs taxed are shown in the Schedule, we will pay, instead of
against the "insured" is amended by the following: the attorney's fees provided in Paragraph A.
above, that portion of the attorney's fees awarded
A. We will pay that portion of the attorney's fees as costs which do not exceed the amount allowed
awarded as costs which does not e-rceed the
for a contested case in Civil Rule 82 for the judg-
amount allowed for a 'contested cáse in the ment amount shown in the Schedule.
schedule of attorney's'fees contained in Alaska
Civil Rule 82 for a judgment equal to the applica-
ble Limit of lnsurance.

tL 01 21 06 03 O ISO Properties, lnc., 2002 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 29 of 74

POLICY NUMBER: HDO G24940354 ENDT. #40

tL 02 80 09 08

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ALASKA CHANGES - CANCELLATION


AND NONRENEWAL
This endorsement modifies insurance provided under the following:

cAPrrAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART


COMMERCIAL AUTOMOBILE COVERAGE PART
COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL LIABILITY UMBRELLA COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
CRIME AND FIDELITY COVERAGE PART
EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART
EQUIPMENT BREAKDOWN COVERAGE PART
FARM COVERAGE PART
FARM UMBRELLA LIABILITY POLICY
LIQUOR LIABILITY COVERAGE PART
MEDICAL PROFESSIONAL LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COMPLETED OPERATI ONS LIAB LITY COVERAGE PART
I

A. The Gancellation Common Policy Condition is b. 20 days before the effective date of cancel-
replaced by the following: lation if we cancel for:
l. The first Named lnsured shown in the Declara- (1) Nonpayment of premium; or
tions may cancel this policy by mailing to us (2) Failure or refusal of the insured to pro-
advance written notice of cancellation. vide the information necessary to con-
2. We may cancel this policy by mailing to you firm exposure or determine the policy
and the agent or broker of record written notice premium; or
of cancellation. Such notice, stating the reason c. 60 days before the effective date of cancel-
for cancellation, must be sent by first class lation if we cancel for any other reason.
mail at least:
3. We will mail our notice to your last known ad-
a. 10 days before the effective date of cancel- dress and the last known address of the agent
lation if we cancel for: or broker of record.
(1) Conviction of the insured of a crime 4. Notice of cancellation will state the effective
having as one of its necessary elements date of cancellation. The policy period will end
an act increasing a hazard insured on that date.
against; or
5. A post office certificate of mailing or certified
(2) Fraud or material misrepresentation by mail receipt will be sufficient proof of mailing
the insured or a representative of the in- of notice.
sured in obtaining the insurance or by
the insured in pursuing a claim under
this policy; or

tL 02 80 09 08 @ lnsurance Services Office. lnc., 2008 Page 1 of2 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 30 of 74

6. lf this policy is cancelled, we will return any (b) Within 45 days of your request to
premium refund due to the agent or broker of cancel;
record, or directly to the first Named lnsured, whichever is later.
or, if applicable, to the premium finance com-
pany. lf: lf the policy is selected for audit, we will
complete the audit within 45 days of re-
a. We cancel, the refund will be the pro rata ceipt of the request for cancellation. The
unearned premium. The refund will be re- refund will be returned within 45 days of
turned or credited before the effective date completion of an audit, or the effective
of cancellation. However, if cancellation is date of cancellation, whichever is later.
for:
B. The following is added and supersedes any provi-
(1) Nonpayment of premium; sion to the contrary:
(2) Conviction of the insured of a crime Nonrenewal
having as one of its necessary elements
an act increasing a hazard insured 1. lf we decide not to renew this policy, we will
against; mail written notice of nonrenewal, by first class
mail, to you and the agent or broker of record
(3) Discovery of fraud or material misrepre- at least 45 days before:
sentation made by the insured or a rep-
resentative of the insured in obtaining a. The expiration date; or
the insurance or by the insured in pursu- b. The anniversary date if this policy has been
ing a claim under the policy; or written for more than one year or with no
(4) Failure or refusal of the insured to pro- fixed expiration date.
vide the information necessary to con- 2. We need not mail notice of nonrenewal if:
firm exposure or necessary to
a. We have manifested in good faith our will-
determine the policy premium;
ingness to renew; or
any unearned premium shall be returned or
credited within 45 days after the cancella-
b. The first Named lnsured has failed to pay
any premium required for this policy; or
tion notice is given; or
b. The first Named lnsured cancels, the re-
c. The firstNamed lnsured fails to pay the
premium required for renewal of this policy.
fund:
(1) Will be the pro rata unearned premium 3. Any notice of nonrenewal will be mailed to
your last known address and the last known
minus a cancellation fee of 7.5% of the
pro rata unearned premium. However, address of the agent or broker of record. A
post office certificate of mailing or certified
we will not retain this cancellation fee if
this policy is cancelled:
mail receipt will be sufficient proof of mailing
of notice.
(a) And rewritten with us or in our com-
pany group; c. The following Condition is added:
(b) At our request;
Notice Of Premium Or Coverage Ghanges On
Renewal
(c) Becauseyou no longer have a finan-
lf the premium to renew this policy increases more
cial or insurable interest in the prop-
erty or buSiness operation that is the
than 10% for a reason other than an increase in
coverage or exposure basis, or if after the renewal
subject of this insurance; or
there will be a material restriction or reduction in
(d) After the first year for a prepaid pol- coverage not specifically requested by the
icy written for a term of more than insured, we will mail written notice to your last
one year; or knou¡n address and the last known address of the
(2) Will be returned or credited: agent or broker of record at least 45 days before:
(a) By the effective date of cancellation; 1. The expiration date; or
or 2. The anniversary date if this policy has been
written for more than one year or with no fixed
expiration date.

Page 2 oÍ 2 @ lnsurance Services Office, lnc., 2008 rL02800908 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 31 of 74

POLICY NUMBER: HDO G24940354 ENDT. #41

COMMERCIAL GENERAL LIABILITY


cG 32 34 01 05

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CALIFORNIA CHANGES
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART


ELECTRONIC DATA LIABILITY COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCT WITHDRAWAL COVERAGE PART
PRO DUCTS/COM PLETED OPERATI O NS LIAB LITY COVERAGE PART
I

UNDERGROUND STORAGE TANK POLICY

The term "spouse" is replaced by the following:


Spouse or registered domestic partner under Califor-
nia law.

cG 32 34 01 05 @ ISO Properties, |nc.,2004 Page I of 1


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 32 of 74

POLICY NUMBER: HDO G249403S4


ENDT. #42

tL 02 70 09 08

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CALIFORNIA CHANGES - CANCELLATION


AND NONRENEWAL
This endorsement modifies insurance provided under the following:

CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART


COMMERCIAL AUTOMOBILE COVERAGE PART'
COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
CRIME AND FIDELITY COVERAGE PART
EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART
EQUIPMENT BREAKDOWN COVERAGE PART
FARM COVERAGE PART
LIQUOR LIABILITY COVERAGE PART .:
MEDICAL PROFESSIONAL LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COM PLETED OPERATI ONS LIABI LITY COVERAG E PART

A. Paragraphs 2. and 3. of the Cancellation Com- 3. All:Policies ln Effect For More Than 60
mon Policy Condition are replaced by the follow- Days
ing:
a, lf this policy has been in effect for more
2. All Policies ln Effect For 60 Days Or Less than 60 days, or is a renewal of a policy we
lf this policy has been in effect for 60 days or issued, we may cancel this policy only upon
less, and is not a renewal of a policy we have the occurrence, after the effective date of
previously issued, we may cancel this policy by the policy, of one or more of the following:
mailing or delivering to the first Named lnsúr.eð
at the mailing address shown in the policy and
(1) Nonpayment of premium, including
payment due on a prior policy we issued
to the producer of record, advance written no- and due during the current policy term
tice of cancellation, stating the reáson for can- covering the same risks.
cellation, at least:
(2) Discovery of fraud or material misrepre-
a. 10 days before the effective date of cancel- sentation by:
lation if we cancel fór:
(a) Any insured or his or her representa-
(l) Nonpaymentof pr:emium; or tive in obtaining this insurance; or
(2) Discovery of fraud by: (b) You or your representative in pursu-
(a) Any insured or his or her representa- ing a claim under this policy.
tive in obtaining this insurance; or (3) A judgment by a court or an administra-
(b) You or your representative in pursu- tive tribunal that you have violated a
ing a claim under this policy. California or Federal law, having as one
b. 30 days before the effective date of cancel-
of its necessary elements an act which
lation if we cancel for any other reason. materially increases any of the risks in-
sured against.

rL 02 70 09 08 O ISO Properties, lnc.,200T Page I of4 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 33 of 74

(4) Discovery of willful or grossly negligent B. The following provision is added to the Gancella-
acts or omissions, or of any violations of tion Common Policy Condition:
state laws or regulations establishing 7. Residential Property
safety standards, by you or your repre-
sentative, which materially increase any This provision applies to coverage on real
of the risks insured against. property which is used predominantly for resi-
dential purposes and consisting of not more
(5) Failure by you or your representative to than four dwelling units, and to coverage on
implement reasonable loss control re- tenants' household personal property in a resi-
quirements, agreed to by you as a con- dential unit, if such coverage is written under
dition of policy issuance, or which were one of the following:
conditions precedent to our use of a
padicular rate or rating plan, if that fail- Commercial Property Coverage Part
ure materially increases any of the risks Farm Coverage Part - Farm Property - Farm
insured against. Dwellings, Appurtenant Structures And House-
(6) A determination hold Personal Property Coverage Form
by the Commissioner of
lnsurance that the: a. lf such coverage has been in effect for 60
(a) Loss of, or changes in, our reinsur- days or less, and is not a renewal of cover-
age we previously., issued, we may cancel
ance covering all or part of the risk
would threaten our financial integrity
this coverage for anyz reason, except as
provided in b. and:'c, below.
or solvency; or
(b) Continuation of the policy coverage b. We ñìâ!',:.¡sf cancel this policy solely be-
cause the first Named lnsured has:
would:
(i) Place us in violation of California 1r) Áòceþted an offer of earthquake cover-
,,::':â9ei OI
Iaw or the laws of the state where
we are domiciled; or (2i :cail;lled or did not renew a policy
(ii) Threaten our solvency.
,", issued by the California Earthquake Au-
thority (bEA) that included an earth-
(7) A change by you or your representative ' ",': quake policy premium surcharge.
in the activities or property of the com-
However, we shall cancel this policy if the
mercial or industrial enterprise, which
first Named lnsured has accepted a new or
results in a materially added, increased
or changed risk, unless the added, 'in- , renewal policy issued by the CEA that in-
cludes an earthquake policy premium sur-
creased or changed risk is included in
charge but fails to pay the earthquake pol-
the policy.
icy premium surcharge authorized by the
b. We will mail or deliver advance wiitten CEA.
notice of cancellation, stating the reason for
cancellation, to the first Named lnsured, at
c. We may not cancel such coverage solely
because corrosive soil conditions exist on
the mailing address shown in the policy,
and to the producer of record, at least:
the premises. This Restriction (c.) applies
only if coverage is subject to one of the fol-
(1) 10 days before the effective date of lowing, which exclude loss or damage
cancellation if we cancel for nonpay- caused by or resulting from corrosive soil
ment of premium or discovery of fraud; conditions:
or
(1) Capital Assets Program Coverage Form
(2) 30 days before the effective date of (Output Policy);
cancellation if we cancel for any other
reason listed in Paragraph 3.a.
(2) Commercial Property Coverage Part -
Causes Of Loss - Special Form; or
(3) Farm Coverage Part - Causes Of Loss
Form - Farm Property, Paragraph D.
Covered Causes Of Loss - Special.

Page2 of 4 @ ISO Properties, lnc., 2007 ¡L02700908 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 34 of 74

c. The following is added and supersedes any provi- (2) The Commissioner of lnsurance finds
sions to the contrary: that the exposure to potential losses will
threaten our solvency or place us in a
NONRENEWAL
hazardous condition. A hazardous con-
1. Subject to the provisions of Paragraphs C.2. dition includes, but is not limited to, a
and C.3. below, if we elect not to renew this condition in which we make claims
policy, we will mail or deliver written notice payments for losses resulting from an
stating the reason for nonrenewal to the first earthquake that occurred within the pre-
Named lnsured shown in the Declarations and ceding two years and that required a re-
to the producer of record, at least 60 days, but duction in policyholder surplus of at
not more than 120 days, before the expiration least 25% for payment of those claims;
or anniversary date. or
We will mail or deliver our notice to the first (3) We have:
Named lnsured, and to the producer of record,
at the mailing address shown in the policy.
(a) Lost or experienced a substantial
reduction in the availability or scope
2. Residential Property of reinsurance coverage; or
This provision applies to coverage on real (b) Experienced a substantial increase
property used predominantly for residential in the premium charged for reinsur-
purposes and consisting of not more than four ance coverage of our residential
dwelling units, and to coverage on tenants' property insurance policies; and
household property contained in a residential
the Commisé¡oner has approved a plan
unit, if such coverage is written under one of
for the nonrenewals that is fair and equi-
the following:
table, and that is responsive to the
Capital Assets Program (Output Policy) Cov- changes in our reinsurance position.
erage Part
c. We will not refuse to renew such coverage
Commercial Property Coverage Part solely because the first Named lnsured has
Farm Coverage Part - Farm Property - Farm cancelled or did not renew a policy, issued
Dwellings, Appurtenant Structures And House- by the California Earthquake Authority that
hold Personal Property Coverage Form included an earthquake policy premium
a. We may elect not to renew such coverage surcharge.
for any reason, except as provided in b., c. d. We will not refuse to renew such coverage
and d. below: solely because corrosive soil conditions ex-
b. We will not refuse to renew such coverage ist on the premises. This Restriction (d.)
solely because the first Named lnsured has applies only if coverage is subject to one of
accepted an offer of earthquake covèrage. the following, which exclude loss or dam-
age caused by or resulting from corrosive
However, the following applies only to in-
soil conditions:
surers who are associate participating in-
surers as established by Cal. lns. Code (1) Capital Assets Program Coverage Form
Section 10089.16. We may elect not to re- (Output Policy);
new such covêrage after the first Named (2) Commercial Property Coverage Part -
lnsured has äcceþted an offer of earth- Causes Of Loss - Special Form; or
quake coverage, if one or more of the fol-
lowing reasons applies:
(3) Farm Coverage Part
- Causes Of Loss
(f) The nonrenewal is based on sound
-
FormFarm Property, Paragraph D.
Covered Causes Of Loss - Special.
undenrvriting principles that relate to the
3. We are not required to send notice of nonre-
coverages provided by this policy and
newal in the following situations:
that are consistent with the approved
rating plan and related documents filed a. lf the transfer or renewal of a policy, with-
with the Department of lnsurance as re- out any changes in terms, conditions, or
quired by existing law; rates, is between us and a member of our
insurance group.

tL 02 70 09 08 O ISO Properties, lnc.,2007 Page 3 of4 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 35 of 74

b. lf the policy has been extended for 90 days e. lf the first Named lnsured requests a
or less, provided that notice has been given change in the terms or conditions or risks
in accordance with Paragraph C.1. covered by the policy within 60 days of the
lf you have obtained replacement cover- end of the policy period.
age, or if the first Named lnsured has f. lf we have made a written offer to the first
agreed, in writing, within 60 days of the Named lnsured, in accordance with the
termination of the policy, to obtain that timeframes shown in Paragraph G.1., to re-
coverage. new the policy under changed terms or
d. lf the policy is for a period of no more than conditions or at an increased premium rate,
60 days and you are notified at the time of when the increase exceeds 25%.
issuance that it will not be renewed.

Page 4 of 4 O ISO Properties, |nc.,2007 tL02700908 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 36 of 74

POLICY NUMBER: HDO G249403S4 ENDT. #43

lL 02 28 09 07
THIS ENDORSEMENT GHANGES THE POLIGY. PLEASE READ IT GAREFULLY.

COLORADO CHANGES - CANCELLATION


AND NONRENEWAL
This endorsement modifies insurance provided under the following:

cAptTAL ASSETS PROGRAM (OUTPUT pOLtCy)COVERAGE PART


COMMERCIAL AUTOMOBILE COVERAGE PART'
COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL LIABILITY UMBRELLA COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
CRIME AND FIDELITY COVERAGE PART
EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART
EQUIPMENT BREAKDOWN COVERAGE PART
FARM COVERAGE PART
FARM UMBRELLA LIABILITY POLICY
LIQUOR LIABILITY COVERAGE PART
PRODUCTS/COM PLETED OPERATIONS LIAB LITY COVERAGE PART
I

A. Paragrap h 2. ofthe Cancellation Common policy


Condition is replaced by the following:
2. lf this policy has been in effect for less than 60
days, we may cancel this policy by mailing or
delivering to the first Named lnsured wriiten
notice of cancellation at least:
a. 10 days before the effective date of cancel-
lation if we cancel for nonpayment of þre-
mium; or
b. 30 days before the effective date of cancel-
lation if we cancel for any other reason.
B. The following is added to the Gancellation Com-
mon Policy Condition:
7. Gancellation Of PoliCies ln Effect For 60
Days Or More
a. lf this polícy has been in effect for 60 days
or more, or is a renewal of a policy we is-
sued, we may cancel this policy by mailing
through firslclass mail to the first Named
lnsured written notice of cancellation:
(l) lncluding the actual reason, at least 10
days before the effective date of cancel-
lation, if we cancel for nonpayment of
premium; or
(2) At least 45 days before the effective
date of cancellation if we cancel for any
other reason.

lL 02 28 09 07 @ ISO Properties, lnc., 2006 of3


Page 1 tr
Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 37 of 74

We may only cancel this policy based on


one or more of the following reasons:
(1) Nonpayment of premium;
(2) A false statement knowingly made by
the ínsured on the application for insur-
ance; or
(3) A substantial change in the exposure or
risk other than that indicated in the ap-
plication and underwritten as of the ef-
fective date of the policy unless the first
Named lnsured has notified us of the
change and we accept such change.
C. The following is added and supersedes any other
provision to the contrary:
NONRENEWAL
lf we decide not to renew this policy, we will mail
through first-class mail to the first Named lnsured
shown in the Declarations written notice of the
nonrenewal at least 45 days before the expiration
date, or its anniversary date if it is a policy written
for a term of more than one year or with no fixed
expiration date.
lf notice is mailed, proof of mailing will be suffi-
cient proof of notice.

Page 2 of 3 O ISO Properties, lnc., 2006 tL 02 28 09 07 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 38 of 74

D. The following condition is added: Any decrease in coverage during the policy term
must be based on one or more of the following
INCREASE IN PREMIUM OR DECREASE IN
reasons:
COVERAGE
We will not increase the premium unilaterally or
1. Nonpayment of premium;
decrease the coverage benefits on renewal of this 2. A false statement knowingly made by the in-
policy unless we mail through first-class mail writ- sured on the application for insurance; or
ten notice of our intention, including the actual 3. A substantial change in the exposure or risk
reason, to the first Named lnsured's last mailing other than that indicated in the application and
address known to us, at least 45 days before the undenvritten as of the effective date of the pol-
effective date. icy unless the first Named lnsured has notified
us of the change and we accept such change.
lf notice is mailed, proof of mailing will be suffi-
cient proof of notice.

1L022807 02 @ ISO Properties, lnc., 2001 Page 3 of 3 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 39 of 74

POLICY NUMBER: HDO G24940354 ENDT. #44

tL 02 62 09 08

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT GAREFULLY.

GEORGIA CHANGES - CANCELLATION


AND NONRENEWAL
This endorsement modifies insurance provided under the following:

CAPTTAL ASSETS PROGRAM (OUTPUT POLTCY) COVERAGE PART


COMMERCIAL AUTOMOBILE COVERAGE PART
COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
CRIME AND FIDELITY COVERAGE PART
EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART
EQUIPMENT BREAKDOWN COVERAGE PART
FARM COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
MEDICAL PROFESSIONAL LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COM PLETED OPERATIONS LIAB I LITY COVERAG E PART

A- Paragraph 4.1. of the Cancellation Common ' Our notice will state the effective date of
Policy Condition is replaced by the following: cancellation, which will be the later of the
1. The first Named lnsured shown in the Declara- : following:
tions may cancel this policy by mailing or de- (1) 10 days from the date of mailing or
livering to us advance written notice of cancel. delivering our notice, or
lation stating a future date on which the policy (2) The effective date of cancellation stated
is to be cancelled, subject to the following: in the first Named lnsured's notice to us.
a. lfonly the interest of the first Named ln- B. Paragraph 4.5. of the Cancellation Common
sured is affected, the effective date of can- Policy Condition is replaced by the following:
cellation will be either the date we receive
notice from the first Named lnsured or the 5. Premium Refund
date specified in the notice, whichever is a. lf this policy is cancelled, we will send the
later. However, upon receiving a written no- first Named lnsured any premium refund
tice of cancellation from the first Named ln- due.
sured, we may waive the requirement that
the notice state the future date of cancella-
b. lf we cancel, the refund will be pro rata,
except as provided in c. below.
tion, by confirming the date and time of
cancellation in writing to the first Named ln- c. lf the cancellation results from failure of the
sured. first Named lnsured to pay, when due, any
premium to us or any amount, when due,
b. lf by statute, regulation or contract this
under a premium finance agreement, then
policy may not be cancelled unless notice
the refund may be less than pro rata. Cal-
is given to a governmental agency, mort- culation of the return premium at less than
gagee or other third party, we will mail or
pro rata represents a penalty charged on
deliver at least 10 days notice to the first
unearned premium.
Named lnsured and the third party as soon
as practicable after receiving the first d. lf the first Named lnsured cancels, the
Named lnsured's request for cancellation. refund may be less than pro rata.

rL 02 62 09 08 O ISO Properties, lnc.,2007 Pagel of2 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 40 of 74

e. ïhecancellat¡on will be effective even if we


With respect to such insurance, the following is
have not made or offered a refund. added to the Cancellation Common Policy Condi-
c. The following is added to the Cancellation Com- tion and supersedes any provisions to the con-
mon Policy condition and supersedes any other trary:
provisions to the contrary:
l. When this policy has been in effect for 60 days
lf we decide to: or less and is not a renewal with us, we may
1. Cancel or nonrenew this policy; or cancel for any reason by notifying the first
Named lnsured at least 10 days before the
2. lncrease current policy premium by more than date cancellation takes effect.
15% (other than any increase due to change in
risk, exposure or experience modification or 2. When this policy has been in effect for more
resulting from an audit of auditable cover- than 60 days, or at any time if it is a renewal
ages); or with us, we may cancel only for one or more of
the following reasons:
3. Change any policy provision which would limit
or restrict coverage; a. Nonpayment of premium, whether payable
to us or to our agent;
Then:
b. Upon discovery of fraud, concealment of a
We will mail or deliver notice of our action (includ- material fact, or material misrepresentation
ing the dollar amount of any increase in renewal made by or with the knowledge of any per-
premium of more than 15%) to the first Named ln- son insured under this policy in obtaining
sured and lienholder, if any, at the last mailing this policy, continuing 1¡¡s,polic! or present-
address known to us. Except as applicable as de- ing a claim under this policy;
scribed in Paragraph D. below, we will mail or de-
liver notice at least: c. Upon the occurrence of a change in the risk
which substantially increases any hazard
1. 10 days before the effective date of cancella- insured against; or
tion if this policy has been in effect less than
60 days or if we cancel for nonpayment of d. Upon the violation of any of the material
premium; or terms or conditions of this policy by any
2. 45 days before the effective date of cancella-
' person insured under this policy.

tion if this policy has been in effect 60 or more We may cancel by providing notice to the first
days and we cancel for a reason other than Named lnsured at least:
nonpayment of premium; or o 10 days before the effective date of cancel-
3. 45 days before the expiration date of this pol- lation if we cancel for nonpayment of pre-
icy if we decide to nonrenew, increase the mium; or
premium or limit or restrict coverage. o 45 days before the effective date of cancel-
D. The following provisions apply to insurance cover- lation if we cancel for any of the reasons
ing residential real property only provided under listed in b., c. or d. above.
the:
Capital Assets Program (Output Policy) Coverage
Part;
Commercial Property Coverage Part;
Farm Coverage Part;
lf the named insured is a natural person.

Page 2 of 2 @ ISO Properties, |nc.,2007 rL02620908 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 41 of 74

POLICY NUMBER: HDO G24940354 ENDT. #45


COMMERCIAL GENERAL LIABIL¡TY

TH¡S ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

KANSAS AND OKLAHOMA CHANGES


TRANSFER OF RIGHTS
-
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART.

Condition 8. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US (Section lV), does not apply
to COVERAGE C. MEDICAL PAYMENTS.

CG 01 0911 85 Copyright, lnsurance Services Office, lnc., 1984 Pagel of1 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 42 of 74

POLICY NUMBER: HDO G24940354 ENDT. #46

tL 02 61 09 07

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

KANSAS CHANGES - GANCELLATION


AND NONRENEWAL
This endorsement modifies insurance provided under the following:

cAPrrAL ASSETS PROGRAM (OUTPUT POLICY)COVERAGE PART


COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
CRIME AND FIDELITY COVERAGE PART
EM PLOYMENT-RELATED PRACTI CES LIABI LITY COVERAGE PART
EQUIPMENT BREAKDOWN COVERAGE PART
FARM COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COMPLETED OPERATIONS LIAB LITY COVERAGE PART
I

A. Paragraph 2. of the Cancellation Common Policy (4) Unfavorable unden¡uriting factors, specific
Condition is replaced by the following: to you, exist that were not present at the in-
ception of this policy;
2.a. We may cancel this policy by mailing or deliv-
ering to the first Named lnsured written notice (5) A determination by the insurance commis-
of cancellation, stating the reasons for cancel- sioner that continuation of coverage could
lation, at least: place us in a hazardous financial condition
(1) 10 days before the effective date of cancel- or in violation of the laws of Kansas; or
lation if we cancel for nonpayment of pre- (6) A determination by the insurance commis-
mium. sioner that we no longer have adequate re-
insurance to meet our needs.
(2) 30 days before the effective date of cancel-
lation if we cancel for any other reason. B. The following is added and supersedes any condi-
tion to the contrary:
b. lf this policy has been in effect for 90 days or
more, or if it is a renewàl of a policy we issued, NONRENEWAL
we may cancel this policy only for one or more 1. lf we decide not to renew this policy, we will
of the following reasons: mail or deliver written notice of nonrenewal,
(1) Nonpayment of premium; stating the reasons for nonrenewal, to the first
(2) This policy was issued because of material Named lnsured at least 60 days prior to the
expiration of the policy.
misrepresentation;
(3) You or any other insured violated any of 2. Any notice of nonrenewal will be mailed or
the material terms and conditions of this delivered to the first Named lnsured's last
policy; mailing address known to us. lf notice is
mailed, proof of mailing will be sufficient proof
of notice.

tL 02 61 09 07 @ ISO Properties, lnc., 2006 Page 1 of 1


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 43 of 74

POLICY NUMBER: HDO G24940354 ENDT. #47

tL 02 63 09 08

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

KENTUCKY CHANGES - CANCELLATION


AND NONRENEWAL
This endorsement modifies insurance provided under the following:

CAPTTAL ASSETS PROGRAM (OUTPUT POLTCY) COVERAGE PART


COMMERCIAL AUTOMOBILE COVERAGE PART
COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL LIABILITY UMBRELLA COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
CRIME AND FIDELITY COVERAGE PART
EM PLOYMENT-RELATED PRACTI CES LIABI LITY COVERAGE PART
EQUIPMENT BREAKDOWN COVERAGE PART
FARM COVERAGE PART
FARM UMBRELLA LIABILITY POLICY
LIQUOR LIABILITY COVERAGE PART
MEDICAL PROFESSIONAL LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRO DUCTS/COM PLETED OPERATIONS LIAB LITY COVERAGE PART
I

A. Paragraph 2. of the Cancellation Common Policy (3) Discovery of willful or reckless acts or
Condition is replaced by the following: omissions on your part which increase
any hazard insured against;
2. Cancellation Of Policies ln Effect For 60
Days Or Less (4) The occurrence of a change in the risk
lf this policy has been in effect for 60 days or which substantially increases any haz-
less, we may cancel this policy by mailing or ard insured against after insurance cov-
erage has been issued or renewed;
delivering to the first Named lnsured written
notice of cancellation, stating the ,reason for (5) A violation of any local fire, health,
cancellation, at least 14 days before the effec- safety, building, or construction regula-
tive date of cancellation. tion or ordinance with respect to any in-
B. The following is added to the Gancellation Com-
sured property or the occupancy thereof
mon Policy Condition:
which substantially increases any haz-
ard insured against;
7. Cancellation Of Policies ln Effect For More
(6) We are unable to reinsure the risk cov-
Than 60 Days
ered by the policy; or
a. lf this policy has been in effect for more (7) A determination by the commissioner
than 60 days or is a renewal of a policy we
issued, we may cancel this policy only for that the continuation of the policy would
place us in violation of the Kentucky in-
one or more of the following reasons:
surance code or regulations of the
(1) Nonpayment of premium; commissioner.
(2) Discovery of fraud or material misrepre-
sentation made by you or with your
knowledge in obtaining the policy, con-
tinuing the policy, or in presenting a
claim under the policy;

tL 02 63 09 08 @ ISO Properties, |nc.,2007 Page I of2 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 44 of 74

b. lf we cancel this policy based on Paragraph 3. lf notice of nonrenewal is not provided pursu-
7.a. above, we will mail or deliver a written ant to this Condition, coverage under the same
notice of cancellation to the first Named ln- terms and conditions shall be deemed to be
sured, stating the reason for cancellation, renewed for the ensuing policy period upon
at least: payment of the appropriate premium until you
(11 14 days before the effective date of the have accepted replacement coverage with an-
cancellation, if cancellation is for non- other insurer, or until you have agreed to the
payment of premium; or nonrenewal.
(2') 75 days before the effective date of the 4. lf we mail or deliver a renewal notice to the
cancellation, if cancellation is for any first Named lnsured at least 30 days before the
reason stated in 7.a.(2) through 7.a.(71 end of the policy period, stating the renewal
above. premium and its due date, the policy will ter-
minate without further notice unless the re-
C. The following is added and supersedes any provi- newal premium is received by us or our author-
sion to the contrary: ized agent by the due date.
NONRENEWAL 5. lf this policy terminates because the renewal
1. For the purpose of this Condition: premium has not been received by the due
a. Any policy period or term of less than date, we will, within 15 days, mail or deliver to
six
months shall be considered to be a policy the first Named lnsured at his last known ad-
period or term of six months; and dress a notice that the policy was not renewed
and the date it was terminated.
b. Any policy period or term of more than one
year or any policy with no fixed expiration 6. lf notice is rnailed, proof of mailing is sufficient
proof of notice.
date shall be considered a policy period or
term of one year.
2. lf we elect not to renew this policy, we will mail
or deliver written notice of nonrenewal, stating
the reason for nonrenewal, to the first Named
lnsured shown in the Declarations, at the last
mailing address known to us, at least 75 days
before the expiration date of the policy period.

Page2 ol 2 @ ISO Properties, lnc., 2007 rL02630908 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 45 of 74

POLICY NUMBER: HDO G24940354 ENDT. #48

COMMERCIAL GENERAL LIABILITY


cG 0l 181204

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

LOUISIANA CHANGES - LEGAL ACTION AGAINST US


This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART


ELECTRONIC DATA LIABILITY COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCT WITHDRAWAL COVERAGE PART
PRO DUCTS/COM PLETED OPERATIONS LIAB LITY COVERAGE PART
I

RAILROAD PROTECTIVE LIABILITY COVERAGE PART

The Legal Action Against Us Condition (Section'


lV
- CondiIions) is replaõed by the following.
Legal Action Against Us
A person or organization may bring a "suit" against us
including, but not limited to, a "suit" to recover on an
agreed éettlement or on a final judgment against an
insured; but we will not be liable for damages that are
not payable under the terms of this Coverage Part or
that are in excess of the applicable limit of insurance
An agreed settlement means a settlement and re.
lease of liability signed by us, the insured and the
claimant or the claimant's legal representative.

cG 01 181204 @ ISO Properties, lnc., 2003 Page 1 of 1


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 46 of 74

POLICY NUMBER: HDO G24940354 ENDT. #49

GOMMERCIAL GENERAL LIABILITY


cG 01 25 03 03

THIS ENDORSEMENT CHANGES THE POLIGY. PLEASE READ IT CAREFULLY.

LOUISIANA CHANGES - INSURING AGREEMENT


This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

A. Paragraph 1.a. of Section I - Coverages, Gover- B. Paragraph 1.a. of Section l- Coverages, Cover-
age A - Bodily lnjury And Property Damage age B - Personal And Advertising lnjury Liabil-
Liability is replaced with the following: ity is replaced with the following:
1. Insuring Agreement 1. lnsuring Agreement
a. We will pay those sums that the insured a. We will pay those sums that the insured
becomes legally obligated to pay as dam- becomes legally obligated to pay as dam-
ages because of "bodily injury" or "property ages because of "personal and "advertising
damage" to which this insurance applies. injury" to which this insurance applies. We
We will have the right and duty to defend will have the right and duty to defend the
the insured against any "suit" seeking those insured against any "suit" seeking those
damages. We may, at our discretion, inves- damages. We may, at our discretion, inves-
tigate any "occurrence" and settle any tigate any offense and settle any claim or
claim or "suit" that may result. But: "suit" that may result. But:
(1) The amount we will pay for damages is (1) The amount we will pay for damages is
limited as described in Section lll- Lim- limited as described in Section lll- Lim-
its Of lnsurance; and its Of lnsurance; and
(2) Our right and duty to defend end when (2) Our right and duty to defend end when
we have used up the applicable limit,of we have used up the applicable limit of
insurance in the payment of judgments insurance in the payment of judgments
or settlements under Coverage A or B or settlements under Coverages A or B
or medical expenses under Coverage C. or medical expenses under Coverage G.
However, using up the Medical Expense However, using up the Medical Expense
Limit does not end our right and duty to Limit does not end our right and duty to
defend. defend.
No other obligation or liability to pay sums No other obligation or liability to pay sums
or perform acts or seruices is covered or perform acts or services is covered
unless explicitly provided for under Sup- unless explicitly provided for under Sup-
plementary Payments - Coverages A and plementary Payments - Coverages A and
B. B.

cG 01 25 03 03 @ ISO Properties, lnc., 2002 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 47 of 74

POLICY NUMBER: HDO G24940354 ENDT. #50

COMMERCIAL GENERAL LIABILITY


cG 26 84 12 04

THIS ENDORSEMENT CHANGES THE POLIGY. PLEASE READ IT CAREFULLY.

LOUISIANA CHANGES - TRANSFER OF RIGHTS OF


RECOVERY AGAINST OTHERS TO US CONDITION
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART


ELECTRONIC DATA LIABILITY COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCT WITHDRAWAL COVERAGE PART
PRODUCTSiCOMPLETED OPERATIONS COVERAGE PART
RAILROAD PROTECTIVE LIABILITY COVERAGE PART
UNDERGROUND STORAGE TANK POLICY
.::

The Transfer Of Rights Of Recovery Against Oth-


ersToUsConditionSectionlV-Gonditionsis..
replaced by the following:
TRANSFER OF RIGHTS OF RECOVERY AGAINST
OTHERS TO US
:. : ]

ln the event of any payment under this Coverage ,' ,,,

Part, we will be entitled to the insured's rights of re-'

covery against any person or organization, and the


insured will do whatever is necessary to secure such
rights. Our right to recover is subordinate to the in. -,
sured's right to be fully compensated.

cG 26 84 12 04 O ISO Properties, lnc., 2003 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 48 of 74

POLICY NUMBER: HDO G24940354 ENDT. #51

tL 02 77 09 08

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

LOUISIANA CHANGES - CANCELLATION


AND NONRENEWAL
This endorsement modifies insurance provided under the following:

CAP|TAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART


COMMERCIAL AUTOMOBILE COVERAGE PART
COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL LIABILITY UMBRELLA COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
CRIME AND FIDELITY COVERAGE PART
EM PLOYMENT-RELATED PRACTI CES LIAB LITY COVERAGE PART
I

EQUIPMENT BREAKDOWN COVERAGE PART


FARM COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
MEDICAL PROFESSIONAL LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRO DUCTS/COMPLETED OPERATIONS LIABI LITY COVERAGE PART
STANDARD PROPERTY POLICY

A. Paragrap h 2. of the Gancellation Common Policy


Condition is replaced by the following, which apl
plies unless Paragraph B. of this endorsement
applies.
2. Notice Of Cancellation
a. Cancellation Of Policies ln Effect For
Fewer Than 60 Days Which Are Not Re-
newals
lf this policy has been in effect for fewer
than 60 days and is nol a renewal of a pol-
icy we issued, we may cancel this policy for
any reason, subject to the following:
(1) Cancellation for nonpayment of pre-
mium
We may cancel this policy by mailing or
delivering to the first Named lnsured
written notice of cancellation at least 10
days before the effective date of cancel-
lation.
(2) Cancellation for any other reason
We may cancel this policy by mailing or
delivering to the first Named lnsured
written notice of cancellation at least 60
days before the effective date of cancel-
lation.

tL 02 77 09 08 @ ISO Properties, |nc.,2007 Page 1 of 5 E]


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 49 of 74

b. Cancellation Of Renewal Policies And New


Policies ln Effect For 60 Days Or More
lf this policy has been in effect for 60 days
or more, or is a renewal of a policy we is-
sued, we may cancel only for one or more
of the following reasons:
(1) Nonpayment of premium;
(2) Fraud or material misrepresentation
made by you or with your knowledge
with the intent to deceive in obtaining
the policy, continuing the policy, or in
presenting a claim under the policy;
(3) Activities or omissions by you which
change or increase any hazard insured
against;
(4) Change in the risk which increases the
risk of loss after we issued or renewed
this policy including an increase in ex-
posure due to regulation, legislation, or
court decision;
(5) Determination by the Commissioner of
lnsurance that the continuation of this
policy would jeopardize our solvency or
would place us in violation of the insur-
ance laws of this or any other state;

Page 2 of 5 @ ISO Properties, |nc.,2007 tL 02 77 09 08 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 50 of 74

(6) The insured's violation or breach of any


policy terms or conditions; or
(7) Any other reasons that are approved by
the Commissioner of lnsurance.
We will mail or deliver written notice of
cancellation under Paragraph 4.2.b., to
the first Named lnsured at least:
(a) 10 days before the effective date of
cancellation if we cancel for non-
payment of premium; or
(b) 30 days before the effective date of
cancellation if we cancel for a rea-
son described in paragraphs
4.2.b.(2) through (7) above.
B. Paragraph 2. of the Cancellation Common policy
Condition is replaced by the following, which ap-
plies with respect to premium payments due on
new and renewal policies, including installment
payments.
2. Notice Of Cancellation
a. lf your premium payment check or other
negotiable instrument is returned to us or
our agent or a premium finance company
because it is uncollectible for any reason,
we may cancel the policy subject to para-
graphs 8.2.b. and 8.2.c.
b. We may cancel the policy effective from
the date the premium payment was due, by
sending you written notice by certified mail,
or by delivering such notice to you within
10 days of the date that we receive notice
of the returned check or negotiable instru-
ment. :

c. The cancellation notice will also advise you


that the policy will be reinstated effeciive
from the date the premium pa¡lment was
due, if you present to us a cashier's check
or money order for the full âmount of the
returned check or other negotiable instru-
ment within 10 days of the date that the
cancellation notiöê was :mailed.
C. Paragraph 5. of the Gancellation Common policy
Condition is replaced by the following:
5. Premium Refund
lf thís policy is cancelled, we will return any
premium refund due, subject to paragraphs
G.S.a., C.s.b., C.5.c., C.s.d., G.S.e. and C.S.f.
The cancellation will be effective even if we
have not made or offered a refund.
a. lf we cancel, the refund will be pro rata.
b. lf the first Named lnsured cancels, the
refund may be less than pro rata, and will
be returned within 30 days after the effec-
tive date of cancellation.

tL 0277 09 08 O ISO Properties, lnc.,20O7 Page 3 of 5 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 51 of 74

c. We will send the refund to the first Named


lnsured unless Paragraph C.5.d. or G.5.e.
applies.
d. lf we cancel based on Paragraph 8.2. of
this endorsement, we will return the pre-
mium due, if any, within 10 days after the
expiration of the 10-day period referred to
in B.2.c. lf the policy was financed by a
premium finance company, or if payment
was advanced by the insurance agent, we
will send the return premium directly to
such payor.
e. With respect to any cancellation of the
Commercial Auto Coverage Part, we will
send the return premium, if any, to the
premium finance company if the premium
was financed by such company.
f. When return premium payment is sent to
the premium finance company or the agent
of the insured, we will provide notice to
you, at the time of cancellation, that a re-
turn of unearned premium may be gener-
ated by the cancellation.
D. The Premiums Common Policy Condition is re-
placed by the following:
PREMIUMS
1. The first Named lnsured shown in the Declara-
tions is responsible for the payment of all pre-
miums.
2. We will pay return premiums, if any, to the first
Named lnsured, unless another person or en-
tity is entitled to be the payee in accordance
with Paragraph C. of this endorsement.
E. Paragraph f. of the Mortgageholders Condition in
the Commercial Property Coverage Part, Stan-
dard Property Policy, and the Capital Assets Pro-
gram (Output Policy) Coverage Part and Para-
graph 4.f. of the Mortgageholders Condition in
the Farm Coverage Part are replaced by the fol-
lowing:
lf we cancel a policy that has been in effect
for fewer than 60 days and is not a renewal
of a policy we issued, we will give written
notice to the mortgageholder, pledgee or
other known person shown in the policy to
have an insurable interest in any loss, at
least:
(1) 10 days before the effective date of
cancellation, if we cancel for nonpay-
ment of premium; or
(2) 60 days before the effective date of
cancellation, if we cancel for any other
reason.

Page 4 of 5 O ISO Properties, lnc., 2007 lL 02 77 09 08 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 52 of 74

lf we cancel a policy that has been in effect 2. We need not mail or deliver this notice if:
for 60 days or more, or is a renewal of a a. We or another company within our insur-
policy we issued, we will give written notice
ance group have offered to issue a renewal
to the mortgageholder, pledgee or other policy; or
known person shown in the policy to have
an insurable interest in any loss, at least: b. You have obtained replacement coverage
(1) 10 days before the effective date of
or have agreed in writing to obtain re-
placement coverage.
cancellation, if we cancel for nonpay-
ment of premium; or 3. Any notice of nonrenewal will be mailed or
delivered to the first Named lnsured, mort-
(2) 30 days before the effective date of gageholder, pledgee or other known person
cancellation, if we cancel for any other shown in the policy to have an insurable inter-
reason. est in any loss, at the last mailing address
F. The following is added and supersedes any other known to us. lf notice is mailed, proof of mail-
provision to the contrary: ing will be sufficient proof of notice.
NONRENEWAL 4. Such notice to the insured shall include the
1. lf we decide not to renew this policy, we will insured's loss run information for the period the
mail or deliver written notice of nonrenewal to policy has been in force within, but not to ex-
the first Named lnsured, mortgageholder, ceed, the last three ¡rears of coverage.
pledgee or other known person shown in the
policy io have an insurable interest in any loss,
at least 60 days before its expiration date, or
its anniversary date if it is a policy written for a
term of more than one year or with no fixed
expiration date.

lL 02 77 09 08 O ISO Properties, |nc.,2007 Page 5 of5 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 53 of 74

POLICY NUMBER: HDO G24940354 ENDT. #52

COMMERCIAL GENERAL LIABIL¡TY


cG 01 34 08 03

THIS ENDORSEMENT CHANGES THE POLIGY. PLEASE READ IT CAREFULLY.

MISSOURI CHANGES - POLLUTION EXCLUSION


This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

The following is added to Subparagraph f., Pollution of Paragraph 2., Exclusions under Section I - Coverage
A - Bodily lnjury And Property Damage Liability Coverage and to Subparagraph m., Pollution of Paragraph
2., Exclusions under Section I - Goverage B - Personal And Advertising lnjury Liability or to any amend-
ment to or replacement thereof:
This Pollution Exclusion applies even if such irritant or contaminant has a function in your business, operations,
premises, site or location.

cG 01 34 08 03 @ ISO Properties, lnc., 2003 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 54 of 74

POLICY NUMBER: HDO c24940354 ENDT. #53

COMMERCIAL GENERAL LIABILITY


cG 26 25 04 05

THIS ENDORSEMENT GHANGES THE POLICY. PLEASE READ IT CAREFULLY.

MISSOURI CHANGES - GUARANTY ASSOCIATION


This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART


ELECTRONIC DATA LIABILITY COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCT WITHDRAWAL COVERAGE PART
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART
RAILROAD PROTECTIVE LIABILITY COVERAGE PART
UNDERGROUND STORAGE TANK POLICY

MISSOURI PROPERTY AND CASUALTY 2. Payments made by the Association for cov-
INSU RANCE GUARANTY ASSOCIATION ered claims will include only that amount of
COVERAGE LIMITATIONS each claim which is less than $300,000.
A. Subject to the provisions of the Missouri properly Howeúer, the Association will not:
and Casualty lnsurance Guaranty Association Act
(to be referred to as the Act), if we are a member (1) Pay an amount in excess of the applicable
of the Missouri Property and Casualty lnsurance limit of insurance of the policy from which a
Guaranty Association (to be referred to as the As- claim arises; or
sociation), the Association will pay claims covered (2) Return to an insured any unearned pre-
under the Act if we become insolvent. mium in excess of $25,000.
B. The Act contains various exclusions, conditions These limitations have no effect on the coverage we
and limitations that govern a claimant's eligíbility will provide under this policy.
to collect payment from the Association and affect
the amount of any payment. The following limita-
tions apply subject to all other provisions of the
Act:
1. Claims covered by the Association do not
include a claim by or against an insured of an
insolvent insurer, if the insured has a net worth
of more than $25 million on the later of the end
of the insured's most recent fiscal year or the
December thirty-first of the year next preced-
ing the date the insurer becomes insolvent;
provided that an insured's net wofth on such
date shall be deemed to include the aggregate
net worth of the insured and all of its affiliates
as calculated on a consolidated basis.

cG 26 25 04 05 @ ISO Properties, lnc.,2O04 Page I of 1


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 55 of 74
POLICY NUMBER: HDO G24940354 ENDT. #54
COMMERC¡AL GENERAL LIABIL¡TY
cG 26 50 12 98

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

MISSOURI CHANGES - MEDICAL PAYMENTS


This endorsement modifies ínsurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

A. Paragraph 1.a. of Coverage C. Medical Payments is (21 The expenses are incurred and repofted to
replaced with the following: us within one year of the date of the acci-
dent. However, expenses reported to us after
L lnsuring Agreement
one year of the date of the accident will not
a. We will pay medical expenses as described be denied solely because of the late submis-
below for "bodily injury" caused by an accident: sion unless such late submission operates to
(1) On premises you own or rent; prejudice our rights; and
(2) On ways next to premises you own or rent; (3) The injured person submits to examination,
or at our expense, by physicians of our choice
as often as wê"reasonably require.
(3) Because of your operations;
provided that:
(1) The accident takes place in the "coverage
territory" and during the policy period;

cG 26 50 12 98 Copyright, lnsurance Services Office, lnc., 1998 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 56 of 74

POLICY NUMBER: HDO G24940354 ENDT. #55

tL 02 74 09 08

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

MISSOURI CHANGES - CANCELLATION


AND NONRENEWAL
ïhis endorsement modifies insurance provided under the following:

CAPITAL ASSETS PROGRAM (OUTPUT POLTCY) COVERAGE PART


COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
CRIME AND FIDELIry COVERAGE PART
EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART
EQUIPMENT BREAKDOWN COVERAGE PART
FARM COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
MEDICAL PROFESSIONAL LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COM PLETED OPERATI ONS LIABI LITY COVERAGE PART

A. When this endorsement is attached to the Stan- a. 10 days before the effective date of cancel-
dard Property Policy CP 00 99, the term Com- , lation if we cancel for nonpayment of pre-
mercial Property Coverage Part in this endorse- mium;
ment also refers to the Standard Property Policy. b. 30 days before the effective date of cancel-
B. With respect to the: lation if cancellation is for one or more of
Commercial General Liability Coverage Part the following reasons:
Commercial Property - Legal Liability Coverage (1) Fraud or material misrepresentation
Form GP 00 40 affecting this policy or a claim filed un-
Commercial Property - Mortgageholders Errors der this policy or a violation of any of
And Omissions Coverage Form CP 00 70 the terms or conditions of this policy;
Crime And Fidelity Coverage Part (2) Changes in conditions after the effective
Employmentrelated Practices Liability Coverage date of this policy which have materially
Part increased the risk assumed;
Equipment Breakdown Coverage Part (3) We become insolvent; or
Farm Liability Coverage Form, (a) We involuntarily lose reinsurance for
Liquor Liability Coverage Part this policy.
Pollution Liability Coverage Part c. 60 days before the effective date of cancel-
Products/Completed Operations Liability Cover- lation if we cancel for any other reason.
age Part
NONRENEWAL
Medical Professional Liability Coverage Part;
2. The following is added and supersedes any
the following Gancellation and Nonrenewal Pro- provision to the contrary:
visions apply:
a. We may elect not to renew this policy by
1. Paragraph 2. of the Gancellation Common mailing or delivering to the first Named ln-
Policy Condition is replaced by the following: sured, at the last mailing address known to
2. We may cancel this policy by mailing or deliv- us, written notice of nonrenewal, stating the
ering to the first Named lnsured written notice actual reason for nonrenewal, at least 60
of cancellation, stating the actual reason for days prior to the effective date of the non-
cancellation, at least: renewal.

rL 02 74 09 08 @ ISO Properties, lnc.,2O07 Pagelof2 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 57 of 74

b. If notice is mailed, proof of mailing will be 3. We will mail or deliver our notice to the first
sufficient proof of notice. Named lnsured's last mailing address known to
C. With respect to the: us.
Capital Assets Program (Output Policy) Coverage 4. Notice of:
Part a. Cancellation will state the effective date of
Commercial Property Coverage Part cancellation. The policy period will end on
Farm Property - Other Farm Provisions Form - that date.
Additional Coverages, Conditions, Definitions b. Any other action will state the effective date
Coverage Form of that action.
Farm - Livestock Coverage Form
Farm Mobile Agricultural Machinery And
5. lf this policy is cancelled, not renewed, re-
duced in amount or adversely modified, we will
Equipment Coverage Form; send the first Named lnsured any premium re-
the Cancellation Common Policy Condition is re- fund due. lf we take this action, the refund will
placed by the following: be pro rata. lf the first Named lnsured cancels,
CANCELLATION, NONRENEWAL AND the refund may be less than pro rata. This ac-
DECREASES IN COVERAGE tion will be effective even if we have not made
or offered a refund.
1. The first Named lnsured shown in the Declara-
tions may cancel this policy by mailing or de- 6. lf notice is mailed, proof of mailing will be
livering to us advance written notice of cancel- sufficient proof of notice.
lation.
2. We may cancel, nonrenew, reduce in amount
or adversely modify this policy by mailing or
delivering to the first Named lnsured written
notice of this action at least:
a. 10 days before the effective date of this
action if due to nonpayment of premium or
evidence of incendiarism; or
b. 30 days before the effective date of this
action if for any other reason.

Page 2 of 2 O ISO Properties, |nc.,2007 tL02740908 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 58 of 74

POLICY NUMBER: HDO c24940354 ENDT. #56

lL 02 82 09 08

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

MISSISSIPPI CHANGES - CANCELLATION


AND NONRENEWAL
This endorsement modifies insurance provided under the following:

CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART


COMMERCIAL AUTO COVERAGE PART
COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL LIABILITY UMBRELLA COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
EM PLOYM ENT-RELATED PRACTI CES LIABI LITY COVERAGE PART
FARM COVERAGE PART
FARM UMBRELLA LIABILITY POLICY
LIQUOR LIABILITY COVERAGE PART
MEDICAL PROFESSIONAL LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COM PLETED OPERATIONS LIAB LITY COVERAG E PART
I

A. Paragraph 7. is added to the Cancellation Com- We will notify the mortgageholder by


mon Policy Conditions: mailing or delivering the cancellation
7. tf: notice to the last mailing address known
to us. lf notice is mailed, proof of mail-
a. The first Named lnsured cancels this policy, ing will be sufficient proof of notice.
we will notify any named creditor loss
payee. g. lf:
b. We cancel this policy, we will mail or de- (1) The first Named lnsured does not renew
liver our written notice of cancellation to this policy, we will notify the morlgage-
any named creditor loss payee in the same holder.
manner and at the same time as notifica- (2) We decide not to renew this policy, we
tion is given to the first Named lnsured, as will give written notice to the mortgage-
stated in this Condition. holder at least:
The provisions of Paragraphs a. and b. above (a) 10 days before an anniversary date
do not apply to any mortgageholder. or the expiration date of the policy, if
B. Paragraphs f. and g. of the Mortgageholders the nonrenewal is due to nonpay-
Condition, if any, are replaced by the following: ment of premium; or
f.tf: (b) 30 days before an anniversary date
or the expiration date of the policy, if
(1) The first Named lnsured cancels this the nonrenewal is for any other rea-
policy, we will notify the mortgage- son.
holder.
We will notify the mortgageholder by
(2) We cancel this policy, we will give writ- mailing or delivering the notice of non-
ten notice to the mortgageholder at renewal to the last mailing address
least 30 days before the effective date known to us. lf notice is mailed, proof of
of cancellation. mailing will be sufficient proof of notice.
G. The following Condition is added and supersedes
any provision to the contrary:

rL 02 82 09 08 O ISO Properties, |nc.,2007 Pagel oÍ2 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 59 of 74

NONRENEWAL The provisions of Paragraphs 1. and 2. above do


l. lf the first Named lnsured does not renew this not apply to any moftgageholder.
policy, we will notify any named creditor loss D. The requirements for notification of cancellation or
payee. nonrenewal of this policy, as stated in Paragraphs
2. lf we decide not to renew this policy, we will 4., B. and G. above, supersede any other notifica-
mail or deliver written notice of nonrenewal to tion requirements to any named creditor loss
the first Named lnsured and any named credi- payee and any mortgageholder, stated in this pol-
tor loss payee, at least: icy, including any endorsement attached to the
policy.
a. 10 days before the effective date of nonre-
newal, if the nonrenewal is due to nonpay- E. Any named creditor loss payee and any mort-
ment of premium; or gageholder may elect not to receive notification of
b. 30 days before an anniversary date or the cancellation or nonrenewal by providing us with a
written release.
expiration date of the policy, if the nonre-
newal is for any other reason.
We will notify the first Named lnsured and any
named creditor loss payee by mailing or deliv-
ering the notice of nonrenewal to the last mail-
ing address known to us. lf notice is mailed,
proof of mailing will be sufficient proof of no-
tice.

Page2 of 2 O ISO Properties, |nc.,2007 tL 02 82 09 08 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 60 of 74

POL¡CY NUMBER: HDO G24940354 ENDT. #57

COMMERCIAL GENERAL LIABILITY


cG 26 61 10 01

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

MONTANA CHANGES - MEDICAL PAYMENTS


This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

Paragraph 1.b. lnsuring Agreement of Coverage (21 Necessary medical, surgical, x-ray and
G. Medical Payments is replaced by the following: dental services, including prosthetic de-
b. We will make these payments regardless of vices; and ,,,

fault. These payments will not exceed the (3) Necessary ambulancà, hospital, profes-
applicable limit of insurance. We will pay ex- sional nursing ând funeral services.
penses for:
(1) First aid adminístered at the time of an
accident;

cG 26 61 10 01 @ ISO Properties, lnc., 2000 Page 1 of 1 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 61 of 74

POLICY NUMBER: HDO G24940354 ENDT. #58

lL 0t 67 09 08

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

MONTANA CHANGES - CONFORMITY


WITH STATUTES
This endorsement modifies insurance provided under the following:

CAP|TAL ASSETS PROGRAM (OUTPUT pOLlCy) COVERAGE PART


COMMERCIAL AUTOMOBILE COVERAGE PART
COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL LIABILITY UMBRELLA COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
CRIME AND FIDELITY COVERAGE PART
EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART
EQUIPMENT BREAKDOWN COVERAGE PART
FARM COVERAGE PART
FARM UMBRELLA LIABILITY POLICY
LIQUOR LIABILITY COVERAGE PART
MEDICAL PROFESSIONAL LIABILITY COVERAGE PART
OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRO DUCTS/COM PLETED OPERATIONS LIAB LITY COVERAG E PART
I

RAILROAD PROTECTIVE LIABILITY COVERAGE PART

A. The following Condition is added: 2. We will provide the minimum amounts and
Conformity with Montana statutes. The provisions types of other coverages, such as no-fault, re-
of this policy or Coverage Part conform to the quired of out-of-state vehicles by the jurisdic-
minimum requirements of Montana law and con- tion where the covered "auto" is being used.
trol over any conflicting statutes of any state in 3. No one will be entitled to duplicate payments
which you reside on or after the effective date of for the same elements of loss.
this policy or Coverage Part. B. Any provision of this policy or Coverage Part (in-
However, with respect to insurance provided un- cluding endorsements which modify the policy or
der the Commercial Automobile Coverage Paft, Coverage Part) that does not conform to the
while a covered "auto" is away f¡om Montana: minimum requirements of a Montana statute is
1. We will increase the Limit of lnsurance for Li- amended to conform to such statute.
ability Coverage to meet the limits specified by
a compulsory or financial responsibility law of
the jurisdiction where the covered "auto" is be-
ing used. This extension does not apply to the
limit or limits specified by any law governing
motor carriers of passengers or property.

rL 01 67 09 08 @ ISO Propefties, lnc., 2007 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 62 of 74

POLICY NUMBER: HDO G24940354 ENDT. #59

tL 02 43 09 07

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

MONTANA CHANGES
This endorsement modifies insurance provided under the following:

CAPTTAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART


COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
CRIME AND FIDELITY COVERAGE PART
EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART
EQUIPMENT BREAKDOWN COVERAGE PART
FARM COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COM PLETED OPERATI ONS LIAB LITY COVERAGE PART
I

A. With respect to other than the Farm Property - (d) Substantial breaches of contractual
Farm Dwellings, Appurtenant Structures And " ,dr.lties, conditions or warranties;
Household Personal Property Coverage Form, (e) Determination by the Commissioner
Paragraph 2. of the Cancellation Common Policy of lnsurance that continuation of the
Condition is replaced by the following: policy would place us in violation of
2. Cancellation Of Policies the Montana lnsurance Code;
a. Midterm Gancellation (f)Financial impairment of us; or
We may cancel this policy based on the (g) Such other reasons that are aP-
provisions below, by mailing or delivering proved by the Commissioner of ln-
written notice to the first Named lnsured at surance.
least 10 days before the effective date of (3) lf this policy has been issued for a term
cancellation: longer than one year, and if either the
(1) lf this policy has been in effect for less premium is prepaid or an agreed term is
than 60 days, excePt as Provided in guaranteed for additional premium con-
Paragraph 2.a.(3),belôw, we may cancel sideration, we may cancel this policy
for any reason. only for one or more of the reasons
stated in Paragraph 2.a.(2'¡ above.
(2) lf this polidy has been in effect for 60
days or more, we may cancel this policy b. Anniversary
Cancellation
prior to the expiration of the agreed We may cancel any policy with a term of
term or prior to one year from the effec- more than one year by mailing or delivering
tive date of the PolicY or renewal, to the first Named lnsured written notice of
whichever is less, only for one or more cancellation at least 45 days before the an-
of the following reasons: niversary date of the policy. Such cancella-
(a) Failure to pay a premium when due; tion will be effective on the policy's anni-
versary date.
(b) Material misrepresentation;
(c) Substantial change in the risk as-
sumed, excePt to the extent that we
should reasonably have foreseen the
change or contemPlated the risk in
writing the contract;

tL 02 43 09 07 O ISO Properties, lnc., 2006 Pagel oÍ2 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 63 of 74

B. With respect to the Farm Property - Farm Dwell- (3) lf this policy has been issued for a term
ings, Appurtenant Structures And Household Per- longer than one year, and if either the
sonal Property Coverage Form, Paragraph 2. of premium is prepaid or an agreed term is
the Cancellation Common Policy Condition is re- guaranteed for additional premium con-
placed by the following: sideration, we may cancel this policy
2. Cancellation Of Policies only for one or more of the reasons
stated in Paragraph 2.a.(2)(bl by mail-
a. Midterm Cancellation ing or delivering written notice to the
(1) We may cancel this policy for nonpay- first Named lnsured at least 45 days be-
ment of premium by mailing or deliver- fore the effective date of cancellation.
ing written notice of cancellation to the b. Anniversary Gancellation
first Named lnsured at least 20 days be-
fore the effective date of cancellation. We may cancel any policy with a term of
more than one year by mailing or delivering
(2) We may cancel this policy based on the to the first Named lnsured written notice of
reason(s) stated in Paragraph 2.a.(2)(a) cancellation at least 45 days before the an-
or (2)(b) by mailing or delivering written niversary date of the policy. Such cancella-
notice of cancellation to the first Named tion will be effective on the policy's anni-
lnsured at least 45 days before the ef- versary date.
fective date of cancellation:
G. Paragraph 5. of the Gáncellation Common Policy
(a) lf this policy has been in effect for Condition is replaced hy the following:
less than 60 days, except as pro-
vided in Paragraph 2.a.(31, we may 5. lf this policy is:cancelled, we will send the first
cancel for any reason. Named lnsured any premium refund due. lf we
cancel, the réfund will be pro rata. lf the first
(b) lf this policy has been in effect for 60 Named lnsured cancels, the refund may be
days or more, we may cancel this less thãn pro rata. The cancellation will be ef-
policy prior to the expiration of the fective éVen if we have not made or offered a
agreed term or prior to one year : réfund. However, when a financed insurance
from the effective date of the policy poliCy is cancelled, we will send any refund
or renewal, whichever is less, only due to the premium finance company on a pro
for one or more of the following rea- ':"'rata basis.
SONS:
O. Àny When We Do Not Renew Condition is de-
(i) Material misrepresentation; ' leted.
(ii) Substantial change in the risk The following When We Do Not Renew Condition
assumed, except to the extent is added:
that we should reasonably have
foreseen the change or contem- 1. lf we electnot to renew this Coverage Part, we
plated the risk in writing the con- will mail or deliver to the first Named lnsured
tract;
shown in the Declarations and agent, if any, a
notice of intention not to renew at least 45
(iii) Substantial breaches of contrac- days before the agreed expiration date.
tual duties, conditions or warran-
ties;
2. We need not mail or deliver this notice if:
(iv) Determination by the Commis- a. You have purchased insurance elsewhere;
sioner of lnsurance that continua- b. You have accepted replacement coverage;
tion of the policy would place us c. You have requested or agreed to nonre-
in violation of the Montana lnsur- newal; or
ance Code;
d. This policy is expressly designated as non-
(v) Financial impairment of us; or renewable.
(vi) Such other reasons that are
approved by the Commissioner
of lnsurance.

Page 2 of 2 O ISO Properties, lnc., 2006 tL02430907 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 64 of 74

POLICY NUMBER: HDO c24940354 ENDT. #60

rL 02 98 09 08

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

NEW MEXICO CHANGES - CANCELLATION


AND NONRENEWAL
This endorsement modifies insurance provided under the following:

CAPTTAL ASSETS PROGRAM (OUTPUT pOLtCy) COVERAGE PART


COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
CRIME AND FIDELITY COVERAGE PART
EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART
EQUIPMENT BREAKDOWN COVERAGE PART
FARM COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
MEDICAL PROFESSIONAL LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COM PLETED OPERATIONS LIAB LITY COVERAG E PART I

A. Paragraph 2. of the Cancellation Common Policy c. lf we cancel subject lo 2.b. above, we will
Condition is replaced by the following: mail or deliver to the first Named lnsured
2. Permissible Reasons And Notice Period written notice of cancellation at least:
a. lf this policy is in effect less than 60 days, (1) 10 days before the effective date of
we may cancel for any reason by mailing or cancellation, for the reason set forth in
delivering to the first Named lnsured written 2.b.(1).
notice of cancellation at least 10 da¡¡s be- (2) 30 days before the effective date of
fore the effective date of cancellation. cancellation, for the reason set forth in
b. lf this policy is in effect 60 days or more, 2.b.(2).
we may cancel only for one or more of the (3) f 5 days before the effective date of
following reasons: :
cancellation, for a reason set forth in
(1) Nonpayment of premium 2.b.(3), 2.b.(4) or 2.b.(5).
(2) There has,been a substantial change in The written notice will state the reason for cancel-
the risk assumed by us since the policy lation, except that such statement may be omitted
was issued. from a notice mailed to an additional insured or
lienholder under this policy.
(3) The policy was obtained through mate-
rial misrepresentation, fraudulent state- B. The following Condition is added:
ments, omissions or concealment of NONRENEWAL
fact material to the acceptance of the lf we decide not to renew this policy, we will mail
risk or to the hazard assumed by us.
or deliver to the first Named lnsured written notice
(4) Willful and negligent acts or omission of the nonrenewal not less than 30 days before
by the insured have substantially in- the expiration date of the policy.
creased the hazards insured against.
(5) You presented a claim based on fraud
or material m isrepresentation.

tL 02 98 09 08 O ISO Properties, |nc.,2007 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 65 of 74

POLIGY NUMBER: HDO G24940354 ENDT. #61

tL 01 15 01 10

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

NEVADA CHANGES - DOMESTIC PARTNERSHIP


This endorsement modifies insurance provided under the following:

COMMERCIAL AUTOMOBILE COVERAGE PART


COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL LIABILITY UMBRELLA COVERAGE PART
ELECTRONIC DATA LIABILITY COVERAGE PART
FARM COVERAGE PART
FARM UMBRELLA LIABILITY POLICY
LIQUOR LIABILITY COVERAGE PART
MEDICAL PROFESSIONAL LIABILITY COVERAGE PART
OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCT WITHDRAWAL COVERAGE PART
PRODUCTS/COM PLETED OPERATIONS LIABI LITY COVERAG E PART
UNDERGROUND STORAGE TANK POLICY

A. All references to spouse shall include an individ- C. With respect to coverage for the ownership, main-
ual who is in a domestic partnership recognized tehance, or use of "covered autos" provided under
under Nevada law. the :Commercial Liability Umbrella Coverage Part,
B. Under the Commercial Auto Coverage Part, the the term "family member" is replaced by the fol-
term "family member" is replaced by the following: lowing:

"Family member" means a person related to the: , "Family member" means a person related to you
by blood, adoption, marriage or domestic partner-
1. lndividual Named lnsured by blood, adoption, ship recognized under Nevada law, who is a resi-
marriage or domestic partnership recognized dent of your household, including a ward or foster
under Nevada law, who is a resident'of such child.
Named lnsured's household, including a: ward
or foster child; or
2. lndividual named in the Schedule by blood,
adoption, marriage, or domestic partnership
recognized under Nevada [aw, who is a resi-
dent of the individual's household, including a
ward or foster child,if the Drive Other Car
Coverage - Broadened Coverage For Named
lndividual Endorsement is attached.

tL 0l 15 01 10 @ lnsurance Services Office, lnc., 2009 Pagel of1 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 66 of 74

POLICY NUMBER: HDO G24940354 ENDT. #62

lL 02 51 09 07

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

NEVADA CHANGES - CANCELLATION


AND NONRENEWAL
This endorsement modifies insurance provided under the following:

CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART


COMMERCIAL AUTOMOBI LE COVERAGE PART
COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL LIABILITY UMBRELLA COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
CRIME AND FIDELITY COVERAGE PART
EM PLOYM ENT-RELATED PRACTI CES LIABI LITY COVERAGE PART
EQUIPMENT BREAKDOWN COVERAGE PART
FARM COVERAGE PART
FARM UMBRELLA LIABILITY POLICY
LIQUOR LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COM PLETED OPERATI ONS LIABI LITY COVERAG E PART

A. The following are added to the Cancellation (5) A material change in the nature or ex-
Common Policy Condition: tent of the risk, occurring after the first
7.a. Midterm Cancellation effective date of the current policy,
which causes the risk of loss to be sub-
lf this policy has been in effect for 70 days stantially and materially increased be-
or more, or if this policy is a renewal of a yond that contemplated at the time the
policy we issued, we may cancel only for policy was issued or last renewed;
one or more of the following reasons:
(6) A determination by the commissioner
(1) Nonpayment of premium; that continuation of our present volume
(2) Conviction of the insured of a crime of premiums would jeopardize our sol-
arising out of acts increasing the hazard vency or be hazardous to the interests
insured against; " , of our policyholders, creditors or the
public;
(3) Discovery of fraud or material misrepre-
sentation in obtaining the policy or in (7) A determination by the commissioner
presenting a òlaim thereunder; that the continuation of the policy would
violate, or place us in violation of, any
(4) Discovery of an act or omission or a provision of the code.
violation of any condition of the policy
which occurred after the first effective b. Anniversary Gancellation
date of the current policy, and substan- lf this policy is written for a term longer
tially and materially increases the haz- than one year, we may cancel for any rea-
ard insured against; son at an anniversary, by mailing or deliv-
ering written notice of cancellation to the
first Named lnsured at the last mailing ad-
dress known to us at least 60 days before
the anniversary date.

tL 02 51 09 07 @ ISO Properties, lnc., 2006 Pagel oÍ2 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 67 of 74

B. The following is added as an additional Condition c. Notices


and supersedes any other provision to the con-
trary: l. Notice of cancellation or nonrenewal in accor-
dance with A. and B. above, will be mailed,
NONRENEWAL first class or certified, or delivered to the first
1. lf we elect not to renew this policy, we will mail Named lnsured at the last mailing address
or deliver to the first Named lnsured shown in known to us and will state the reason for can-
the Declarations a notice of intention not to re- cellation or nonrenewal.
new at least 60 days before the agreed expira- 2. We will also provide a copy of the notice of
tion date. cancellation, for both policies in effect less
lf notice is mailed, proof of mailing will be suf- than 70 days and policies in effect 70 days or
ficient proof of notice. more, to the agent who wrote the policy.
2. We need not provide this notice if:
a. You have accepted replacement coverage;
b. You have requested or agreed to nonre-
newal; or
c. This policy is expressly designated as non-
renewable.

Page 2 of 2 O ISO Properties, lnc., 2006 tL 02 51 09 07 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 68 of 74

POLICY NUMBER: HDO G24940354 ENDT. #63


COMMERCIAL GENERAL LIABILITY

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

KANSAS AND OKLAHOMA CHANGES


TRANSFER OF RIGHTS
-
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART.

Condition 8. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US (Section lV), does not apply
to COVERAGE C. MEDICAL PAYMENTS.

CG 01 09 11 85 Copyright, lnsurance Services Office, lnc., 1984 Pagelofl tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 69 of 74

POLICY NUMBER: HDO G24940354 ENDT. #64

lL 02 36 09 07

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

OKLAHOMA CHANGES - CANCELLATION


AND NONRENEWAL
This endorsement modifies insurance provided under the following:

cAPrrAL ASSETS PROGRAM (OUTPUT POLICY)COVERAGE PART


COMMERCIAL AUTOMOBILE COVERAGE PART
COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL LIABILITY UMBRELLA COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
CRIME AND FIDELITY COVERAGE PART
EM PLOYMENT-RELATED PRACTICES LIAB LITY COVERAGE PART
I

EQUIPMENT BREAKDOWN COVERAGE PART


FARM COVERAGE PART
FARM UMBRELLA LIABILITY POLICY
LIQUOR LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART

Paragraph 2. of the Cancellation Common Policy (a) The occurrence of a change in the risk
Condition is replaced by the following: that substantially increases any hazard
2. We may cancel this policy by mailing or deliv-, ' insured against after insurance cover-
age has been issued or renewed;
ering to the first Named lnsured written notice
of cancellation at least: (5) A violation of any local fire, health,
safety, building, or construction regula-
a. 10 days before the effective date of cancel-
tion or ordinance with respect to any
lation if we cancel for nonpayment of pre-
covered property or its occupancy that
mium; or
substantially increases any hazard in-
b. 30 days before the effeclive date of cancel- sured against;
lation if we cancel for any other reason.
(6) A determination by the lnsurance
After coverage has been in effect for more Commissioner that the continuation of
than 45 business days or after the effective the policy would place us in violation of
date of a renewal of this policy, no notice of the insurance laws of this state;
cancellation will be issued by us unless it is
(7) Your convíction of a crime having as
based on at least one of the following reasons:
one of its necessary elements an act in-
(1) Nonpayment of premium; creasing any hazard insured against; or
(2) Discovery of fraud or material misrepre- (8) Loss of or substantial changes in appli-
sentation in the procurement of the in- cable reinsurance.
surance or with respect to any claims
B. The following are added to the Common Policy
submitted under it;
Conditions and supersede any provisions to the
(3) Discovery of willful or reckless acts or contrary:
omissions by you that increase any
hazard insured against;

lL 02 36 09 07 O ISO Properties, lnc., 2006 Pagelof2 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 70 of 74

1. Nonrenewal c. lf notice is mailed:


a. lf we elect not to renew this policy, we will (1) lt will be considered to have been given
mail or deliver written notice of nonrenewal to the first Named lnsured on the day it
to the first Named lnsured at least 45 days is mailed.
before:
(2) Proof of mailing will be sufficient proof
(1) The expiration date of this policy; or of notice.
(2) An anniversary date of this policy, if it is d. lf the first Named lnsured accepts the re-
written for a term longer than one year newal, the premium increase or coverage
or with no fixed expiration date. changes will be effective the day following
b. Any notice of nonrenewal will be mailed or the prior policy's expiration or anniversary
delivered to the first Named lnsured at the date.
last mailing address known to us. e. lf notice is not mailed or delivered at least
c. lf notice is mailed: 45 days before the expiration date or anni-
(1) lt will be considered to have been given versary date of this policy, the premium,
to the first Named lnsured on the day it deductible, limits and coverage in effect
prior to the changes will remain in effect
is mailed.
until:
(2) Proof of mailing will be sufficient proof
of notice.
(1) 45 days after notice.is given; or
d. lf notice of nonrenewal is not mailed or (2) The effective date of :replacement cov-
delivered at least 45 days before the expi- erage obtained by the insured;
ration date or an anniversary date of this whichever occurs iirst.
policy, coverage will remain in effect until lf the first Named lnsured then elects not
45 days after notice is given. Earned pre- to renew, any earned premium for the re-
mium for such extended period of coverage sulting extended period of coverage will be
will be calculated pro rata based on the calculated pro rata at the lower of the new
rates applicable to the expiring policy. rates or rates applicable to the expiring pol-
e. We will not provide notice of nonrenewal if: icy.
(1) We, or another company within the f. We will not provide notice of the following:
same insurance group, have offered to (1) Changes in a rate or plan filed pursuant
issue a renewal policy; or to the Property and Casualty Competi-
(2) You have obtained replacement cover- tive Loss Cost Rating Act applicable to
age or have agreed in writing to obtain an entire class of business;
replacement coverage. (2) Changes which are based upon the
f. lf we have provided the required notice of altered nature or extent of the risk in-
nonrenewal as described in 8.1.a. above, sured; or
and thereafter extend the policy for a pe- (3) Changes in policy forms filed with or
riod of 90 days or less, we will not provide approved by the lnsurance Commis-
an additional nonrenewal notice with re- sioner and applicable to an entire class
spect to the period of extension. of business.
2. Premium Or Goverage Changes At Renewal
a. lf we elect to renew this policy, we will give
written notice of any premium increase,
change in deductible, or reduction in limits
or coverage, to the first Named lnsured, at
the last mailing address known to us.
b. Any such notice will be mailed or delivered
to the first Named lnsured at least 45 days
before:
(1) The expiration date of this policy; or
(2) An anniversary date of this policy, if it is
written for a term longer than one year
or with no fixed expiration date.

Page 2 of 2 @ ISO Propedies, lnc., 2006 1L02360907 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 71 of 74

POL¡CY NUMBER: HDO G24940354 ENDT. #65

tL 02 46 09 07

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

PENNSYLVANIA GHANGES - CANCELLATION


AND NONRENEWAL
This endorsement modifies insurance provided under the following:

CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART


COMMERCIAL AUTOMOBILE COVERAGE PART
COMMERCIAL GENERAL LIABILITY COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL LIABILITY UMBRELLA COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
CRIME AND FIDELITY COVERAGE PART
EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART
EQUIPMENT BREAKDOWN COVERAGE PART
FARM COVERAGE PART
FARM UMBRELLA LIABILITY POLICY
LIQUOR LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COM PLETED OPERATI ONS LIAB LITY COVERAG E PART
I

A. The Cancellation Common Policy Condition is b. You have failed to pay a premium when
replaced by the following: due, whether the premium is payable di-
CANCELLATION rectly to us or our agents or indirectly under
a premium finance plan or extension of
1. The first Named lnsured shown in the Declara- credit. Notice of cancellation will be mailed
tions may cancel this policy by writing or giving at least 15 days before the effective date of
notice of cancellation. :
cancellation.
2. Gancellation Of Policies ln Effect Fôi Less A condition, factor or loss experience mate-
Than 60 Days rial to insurability has changed substantially
We may cancel this policy by mailing or deliv- or a substantial condition, factor or loss ex-
ering to the first Named lnsured written notice perience material to insurability has be-
of cancellation at least 30 days before the ef- come known during the policy period. No-
fective date of cancellation. tice of cancellation will be mailed or
delivered at least 60 days before the effec-
3. Cancellation Of Policies ln Effect For 60 tive date of cancellation.
Days Or More
d. Loss of reinsurance or a substantial de-
lf this policy has been in effect for 60 days or crease in reinsurance has occurred, which
more or if this policy is a renewal of a policy loss or decrease, at the time of cancella-
we issued, we may cancel this policy only for tion, shall be certified to the lnsurance
one or more of the following reasons:
Commissioner as directly affecting in-force
a. You have made a material misrepresenta- policies. Notice of cancellation will be
tion which affects the insurability of the risk. mailed or delivered at least 60 days before
Notice of cancellation will be mailed or de- the effective date of cancellation.
livered at least 15 days before the effective
date of cancellation.

tL 02 46 09 07 @ ISO Properties, lnc., 2006 Pagel oÍ2 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 72 of 74

e. Material failure to comply with policy terms, 7. lf notice is mailed, it will be by registered or
conditions or contractual duties. Notice of first class mail. Proof of mailing will be suffi-
cancellation will be mailed or delivered at cient proof of notice.
least 60 days before the effective date of B. The following are added and supersede any provi-
cancellation. sions to the contrary:
f.
Other reasons that the lnsurance Commis- 1. Nonrenewal
sioner may approve. Notice of cancellation
will be mailed or delivered at least 60 days lf we decide not to renew this policy, we will
before the effective date of cancellation. mail or deliver written notice of nonrenewal,
stating the specific reasons for nonrenewal, to
This policy may also be cancelled from inception the first Named lnsured at least 60 days before
upon discovery that the policy was obtained the expiration date of the policy.
through fraudulent statements, omissions or con-
cealment of facts material to the acceptance of 2. lncrease Of Premium
the risk or to the hazard assumed by us. lf we increase your renewal premium, we will
4. We will mail or deliver our notice to the first mail or deliver to the first Named lnsured writ-
Named lnsured's last mailing address known to ten notice of our intent to increase the pre-
us. Notice of cancellation will state the specific mium at least 30 days, before the effective
reasons for cancellation. date of the premium increâse.

5. Notice of cancellation will state the effective Any notice of nonrenêWâl or renewal premium in-
date of cancellation. The policy period will end crease will be mailed or: delivered to the first
on that date. Named lnsured's last known address. lf notice is
mailed, it will be by registered or first class mail.
6. lf this policy is cancelled, we will send the first Proof of mailing will be sufficient proof of notice.
Named lnsured any premium refund due. lf we
cancel, the refund will be pro rata and will be
returned within 10 business days after the ef-
fective date of cancellation. lf the first Named
lnsured cancels, the refund may be less than
pro rata and will be returned within 30 days af-
ter the effective date of cancellation. The can-
cellation will be effective even if we have not
made or offered a refund.

Page 2 of 2 O ISO Properties, lnc., 2006 tL 02 46 09 07 tr


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 73 of 74

POLICY NUMBER: HDO G24940354 ENDT. #66

COMMERC¡AL GENER,AL LIABILITY


cG 0l 03 06 06

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

TEXAS CHANGES
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

A. With regard to liability for Bodily lnjury, Property


Damage and Personal And Advertising lnjury,
unless we are prejudiced by the insured's or your
failure to comply with the requirement, no provi-
sion of this Coverage Pañ requiring you or any
insured to give notice of "occurrence", claim or
"suit", or fon¡rlard demands, notices, summonses
or legal papers in connection with a claim or
"suit" will bar coverage under this Coverage
Paft.

cG 0l 03 06 06 O ISO Properties, lnc., 2005 Page 1 of 1


Case 4:10-cv-02931 Document 1-2 Filed in TXSD on 08/16/10 Page 74 of 74
POLICY NUMBER: HDO G24940354 ENDT. #67

SIGNATURES

Named lnsured Endorsement Number


M-r, L.L.C. 67
Poticy Symbol Policy Number Policy Period Effective Date of Endorsement
HDO c24940354 04/0L/20L0 to 04/oL/2oLL
lssued By (Name of lnsurance Company)
ACE American Insurance Companv
icv number. The remainder of the information is to be comoleted onlv when this

THE ONLY SIGNATURES APPLICABLE TO THIS POLICY ARE THOSE REPRESENTING THE COMPANY NAMED
ON THE FIRST PAGE OF THE DECLARATIONS.
By signing and delivering the policy to you, we state that it is a valid contract.
INDEMNITY INSURANCE COMPANY OF NORTH AMERICA
436 Walnut Street, P. O. Box 1000, Philadelphia, Pennsylvania 19'l06-3703

BANKERS STANDARD FIRE AND MAR]NE COMPANY


436 Walnut Street, P. O. Box 1000, Philadelphia, Pennsylvania 19106-3703

BANKERS STANDARD INSURANCE COMPANY


436 Walnut Street, P. O. Box 1000, Philadelphia, Pennsylvania 19106--3703,

ACE INDEMNITY INSURANCE COMPANY ,, , ,


i

436 Walnut Street, P. O. Box 1000, Philadelphia, Pennsylvania 19106-3703

ACE AMERICAN INSURANCE COMÞANY


436 Walnut Street, P. O. Box'1000, Philadelphia, Pennsylvania 19106-3703

ACE PROPERTY AND CASUALTY INSURANCË COIVIPII.IY


436 Walnut Street, P. O. Box 1000, Philadelphia, Pennsylvania 19106-3703

INSURANCE COMPANY OF NORTH AMERICA


436 Walnut Street, P. O. Box 1000, Philadelphia, Pennsylvania 19106-3703

PACIFIC EMPLOYERS INSURANCE COMPANY


436 Walnut Street, P. O. Box 1000, Philadelphia, Pennsylvania 19106-3703

ACE FIRE UNDERWRITERS INSURANCE COMPANY


436 Walnut Street, P. O. Box 1000, Philadelphia, Pennsylvania '1 9106-3703

,#--"-
/,,,,0,
,rÌ-n*ut- oo-
I --
o. u,i.'in"i*,-*,,
WESTCHESTER FIRE INSURANCE COMPANY
1325 Avenue of the Americas, 19th Floor, New York, NY 10019

Æ"-!- drrrro,
r+Ì-n"-utn
o. tt.tt.ttrtt t..,rro,y
*- h,*,"neqU
¿r DENI*,||S À, TROSBI JR,. Presidcnt

Authorized Agent

CC-1K11e (02/06) Ptd. in U.S.A