Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 1 of 197
EXHIBIT “1”
Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 2 of 197
SUMMONS FOR COURT USE DNl. y_· (SOLO PA,RA USO DELA CORTE) (CITA CION JUDICIAL) (A6J~ci Ii' g;;;z~:~b~: FALLS LAKE FIRE AND CAS,UAL TY COMPANY, A CALIFORNIA CORP.ORATION;, (CONT'D)
YOUAREBEING SUED BY PLA.INTiFF: (!:6 ESTA DEMANDANDCJ EL DE_MANDAN[E):
M4 BROADY\'f.YLLC, A 9ALIFORNIA .LIM!TED LJABILIJY·CQMPANY N9TI.GE!. You haye !>_een sued .. Tl)ci.court may decide _against yiiu 'W,ithput yourpeing·heard unless you respond;Withip 30 .. dl)ys;Reaq the informatil:,n below .. , . .,...... , . . · ··. . · ·You. have 30 CALENDAR DAYS after this sumrnons and legal papers'ai'e s~rved,6n you. to fife a written respoli~e.:at this <:'oyrt i;ind i:,a11e a copy· served on the plainliff. A letter Of phone calhvill not pr9t~d:yoµ:,yo(i(Wrme~ i:~sp9fisii:n'!u,\\t. be in propedeef?lfqr,,:i:i)fyou'yi3ni'ihep9urt IQ liear-.youf c~si;,, Theft mdy,?e a C'.Oll[( form that yi:iu can u:s~Jqr Y,'?ur,respqn$,e. ?(liu ,~fi firig,,t~~se CPU~ ,f9,rrns, an9 rr.ore IJ1fprm11!Jon .at the;C!;Jlif0J,11ia Courts . 011U11e_ Self,Help Center (w.w;.courtinfo.ca.gov/sel{help); your,_countyJaw library; or the.courthouse n,earest,youJ(you cannot pay·the filing fee, ask lhe court cJerJdor a f_e.e waiver, form. If, yoLLdO not file your re,sponse· on.,tli-oe:;.yoLi.' may lo:se:.tbe :case,by;'defa'uJtfahd'Yoik wages; money, and property may, be'taken w1llioutfurtherwarning·from·the court. ·· · • · · ·· ·· ·· · · · There are. o.t~~r: legal re_g~irerniints. You may _w~ntlOc',ill a.rt-~- ·,ey):jglitiao/~f irYotl;QB ooJ ki]o\~'ari:~~~fl,iijyi.yo_u r'ii~y_viant tCJ ~all an aitornef referral service, If you cannot afford ari aitOrney;you mayb_e . _. JorfreelegaJ'services:froma,nonprofif!egafservices,program. Yo.u.can.loc:ate tp~se opnprofit groups ai ttie Calilo,ri.ia. Legal Sectices. Web;site(www;l~wiieip,ciliforrifa:◊rg), ifie .Calif~;.;;ia Courts:t>,Iffne 'Self-Reip Center (www:courtinto:ca:goviselfhelp), or i'ircontaciing your localcourtofcount'/ b~fasso'ciatiori:-f,JOTE: Thfcou[t has-a'sfutulbfy,ffeh for Waived fees .a_rid costs on anysett!ement orartiitralion award of $'10,000 or11iorejii a'dyiJ,case.,Ttje\ci:itirt'.s'.Hen_l'liust:be-paid befor(J,~tie 2ciuf(i/,ill dismiss the.case. j'AVISO! La_h_an' demaild~qo, s) no resporide denf(d de :10:i;Jr~t; )a ~~t1,fp'4,?,il,~,deqldjr'in iJ tonira Iin·e':~~udh;;}t! vers/ori' [~i;! ia ';nformaci6n a: continuaci6n . .Tiene 30DlifSDE°CALENDAR!Odespues de que /(yen/reguenesta ciiaci6tiy,pape!&s legates para presentar,unatespuesta porescrito en.esta corte.y hacerqua se entregue·una copia el demandante. Una0tarta:o'iliialla,mbdate/6f¢n,iqfno'.fo.pi_oteg'.en', $/J[fJ,spWstapoies~tito'.tierie qi.ttf estar eri fdr{riato liiga/ci:irrecli, sf d_esea que prose sen sif c~so e_ri,)r(cqi:ffi,:. ££$,p
The name; address, and ,telephone number of plaihtilfs att?i:he-yi,or plaintiff lt\!tih,0~1tan.attom~y; is; (E,}:(iornbr~. la dir1ccf6n y el numero de te/efono delabo[Jado de/ demandante, o de/ demandante,que.po tiene abog_ado1 .es): Terry J. Mornca, Esq,, MOLLICA LAW, 560 Firs!Street; ~uit~ B201, B~~i~ia, Cl>JJ4510 Tele .. ,925 2;}9?380 , Dep1,1ty DATE: OCT O, 9 '• ' Cferk of the Court Clerk, by (Fecha) (Secretario) (Adjunto) (For proof of seNice of this summons, use Pro.of cit Service ofSummons. (form POS-010).) (Para prueba de entrega de est a citation wie -el forrr(u/ado: Proof'qfSeryice of Summons, NOTICE TO THE PE:RSON .SERVED: You are served 1. D as an individual di SUM~200(A SHORT TITLE: '{;ASE.~UMBER: 644. Broadway LLC v. Falls. lake Fire and Casulaty Company; et;at INSTRUCTIONS FOR USE· ➔ This form may be used as an attachrrieni to any s1.frnrnonsif?p;:i~e,does ryofperrnihhe_iistihg ofa))parti~s on the summons. ➔ lf this a!!achment is used, inseitthe following sfatern~nl'in the plaintiff-ordefondantbox:onJhe,suhimdns: "Al:ldit[onal.Parti~s Attachment form is attached." List additional parties (Check only one box. Use 13sepfii:;1te,,pafie '&r:eJ,phitype.Qf pa,:ty:h D Plaintiff G'] Defendant O tt6ss;..Cpti1plainari( 0 'Cti;isscDe.fehi:lanl FALLS.LAKE NATIONAL INSURANCE COMPANY. ·A.NbHiOCORPORATION;ANb'bb'iis 1 iHR60GH50;JNCLUSIVE Page of Page 1 of 1 Form Adopted for tialiC:atory Ust: ADDITIONAL PARTIES ATTACHMENT Ju•::ic~i Co;,mcil cf CaHornia SlJMv200(A) [Rev. Ja'l'.l'Jr-1 1. 2007j Attachment to Summons For your protection and privacy, please press the Clear This Form button after you have printed the form. l Pr:iri(this fo}·frj,J I Sa~e this form I Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 4 of 197 Mmtin W. Jaszczuk, Esq. Daniel Schlessinger, Esq. Maiia G. Enriquez, Esq. 2 Tamra Miller, Esq. (Bar No. 224040) F. I I. E D JASZCZUK P.C Superior cfou'rt of California 3 311 S. Wacker Drive, Suite3200 County of San Francisco Chicago, U~ 60606 4 Telephone: (312) 442-0509 SEP 3 02im0 5 mj aszczuk@j aszczuk. com COURT [email protected] 6 menriquez@j aszczuk. com [email protected] 7 Terry J. Mollica., Esq. (Bar No. 139816) 8 MOLUCALAW 560 First Street, Suite B201 9 Benicia, CA 94510 Telephone: (925) 239-2380 IO Facsimile: (925) 239-2382 [email protected] 11 Attomeys for plaintiff 12 644 BROADWAY, LLC 13 SlJPERIOR COURT OF CALIFORNIA 14 CITY A'ID COUNTY OF SAN f'RA.NCISCO 15 16 lJNLll\:UTED JURISDICTION 17 CaseNo:CGC=2 = 18 644 Broadway LLC, a California limited 0 58 / 0 71 liability company, 19 COMPLA.INT FOR BREACH O.F Plaintiff, COT\TRACT AND 20 DECLARATORY RELIEF 21 V. Jury Trial Demanded 22 Falls Lake Fire and Casualty Company, a Califomia corporation, Falls Lake National 23 Insurance Company, an Ohio corporation; 24 and DOES 1 through 50, iriclusive, 25 Defonda11ts 26 ')'7 _/ NOW C01VlES 644 Broadway LLC, a California limited liability company 28 ("Plaintiff' or "644 Broadway''), and for its Complaint against Falls Lake National Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 5 of 197 Insurance Company and Falls Lake Fire and Casualty Company ("Defendants"), alleges as 2 follows: 3 l. INTRODUCTION 4 644 Broadway Street LLC is a California limited liability company that 5 owns the buildings at 644 and 660 Broadway Street in San Francisco, California. 644 6 Broadway rents space to several tenants including, but not limited to, China Live and The 7 Speakeasy (sometimes referred to coilectively herein as "Plaintiff's tenants''). China Live 8 is a highly acclaimed dining establishment that includes a market restaurant with eight 9 specialized food stations, a separate restaurant called Eight Tables by George Chen, and ]O six cocktail bars. The Speakeasy features an immersive theatrical experience that sends 11 customers back in time to San Francisco's North Beach District during prohibition. 12 2. Beginning in March 2020, state and local officials in California issued a 13 series of orders closing non-essential businesses, including Plaintdrs tenants' businesses, 14 and directing consumers to stay at home. 15 3. These orders prevented customers and employees of Plaintiff's tenants from 16 physically occupying Plaintiffs premises and prevented Plaintiff's tenants from operating 17 their businesses. Plaintiffs tenants' inability to occupy and operate their premises resulted 18 in the tenants' inability to pay rent to Plaintiff 19 4. At the same time, San Francisco issued a moratorium on evictions. As a 20 result, Plaintiff had no ability to leverage a potential eviction to force payment of rent or to 21 obtain other tenants able to pay rent. 22 5. Plaintiff suffered a staggering loss of rental income as a result of these 23 orders in the form of its tenants' inability to pay rent. 24 6. Plaintiff is insured under commercial prope1iy insurance policies issued by 25 Defendants under their Commercial Industrial Building Ovmer's Alliance (CIBA) 26 Insurance Program, which provide coverage for ''the actual Loss ofincome sustained by the Named Insured resulting directly from the necessary untenantability caused by direct 28 2 COMPLAIN'r FOR BREACH OF CONTRACT AND DECLARATORY REUEf Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 6 of 197 1 physical loss, damage, or destruction by any of the perils covered herein during the term of 2 the policies to real or personal property .... " 3 7. Plaintiff purchased the policies to protect its livelihood in the event of an 4 unforeseen untenantability of its buildings resulting in its tenants' failure or inability to pay 5 rent, and Plaintiff faithfully paid premiums over the years to obtain this protection. 6 8. The recent government-mandated shutdowns of Plaintiff's tenants' facilities 7 and resulting loss of rental income are precisely the sort of unforeseen, economically 8 calamitous events Plaintiff sought to insure itself against when it purchased insurance from 9 Defendants. But when Plaintiff made a claim for coverage as a result of the shutdovms 10 that resulted in the untenantability of Plaintiff's facilities, Defendants made clear from the 11 outset that coverage would not be available for Plaintiff's claim. 12 9. Specifically, without investigation, and based on an erroneous reading of 13 the language in Plaintiff's insurance policies as well as a mischaracterization of the nature 14 of Plaintiffs losses, Defendants denied Plaintiff's claim. 15 10. Defendants' denial of Plaintiffs claim was arbitrary, unreasonable, contra1y 16 to the language of Plaintiff's insurance policies, contrmy to the undisputed facts, and 17 contrary to law. l8 ] l. Due to Defendants' wrongful denial of coverage, Plaintiff brings this action 19 for a declaratory judgment establishing that it is entitled to receive the benefit of the 20 insurance coverage it purchased, for indenmification of the income losses it has sustained, 21 and for breach of contract 22 n. PARTIES 23 12. Plaintiff 644 Broadway LLC is a California limited liability company that 24 owns the buildings located at 644 and 660 Broadway Street in San Francisco, California. 25 The LLC is located in Lafayette, California. 26 13. Upon information and belief, Defendant Falls Lake National Insurance 27 Company is domiciled in Ohio and has its principal place of business in Raleigh, North 28 Carolina. 3 COMPLAJNT FOR BRE,.\CH OF CONTRACT AND DECLARATORY REUEF Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 7 of 197 14. Upon infonnation and belief, Defendant Falls Lake Fire and Casualty 2 Company is domiciled in California and has its principal place of business in Raleigh, 3 Noith Carolina. 4 HI. .JURISDICTION AND VENUE 5 15. The insurance policies provide that jurisdiction \vill be \:Y1th the court where 6 the insured prope1ty is located and that the law of the state where the property is located 7 shall apply. 8 16. The properties at issue are located in San Francisco, California. Therefore, 9 jurisdiction is proper in the Superior Court of California for the County of San Francisco, 10 and California law applies to this action. 11 IV. FACTUAL BACKGROUND ]2 17. In March 2020, officials in California-as in many other states-ordered 13 the closing of all non-essential businesses, including restaurants, bars, and theatres. 14 18. For example, on rv1arch 19, 2020, the Governor of California entered Executive Order N-33-20, directing all California residents to shelter in place, except as 16 necessary to facilitate critical infrastructure sectors. 17 19. Around this same time, cow1ty officials in San Francisco County, California 18 entered orders directing residents to shelter in place and/or closing or restricting the 19 operations of non-essential businesses like Plaintiff's tenants' businesses. (The state and 20 local government orders referenced in paragraphs 17 through 19 are hereinafter referred to 21 as the "Executive Orders.") 20. Under the Executive Orders, Plaintiffs tenants were required to close their 23 Licilities for a period of several weeks. 24 21. During this time, Plaintiff's tenants could not allow customers to enter their 25 premises and could not carry on their businesses. 26 Additionally, during this same time period, San Francisco issued a 27 moratorium on evictions of small to medium-sized businesses due to a loss of income 28 related to lost revenue or other economic impacts caused by the COVID-19 pandemic, 4 COMPLAINT f'OR BREACH OJ/ CONTRACT AND DECLARATORY REUEF Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 8 of 197 1 making it impossible for Plaintiff to evict non-paying tenants and thus rendering Plaintiffs 2 property "untenantabl e." 3 23. As a result of the Executive Orders, Plaintiff's tenants were unable to pay 4 rent, Plaintiffs property became untenantable, and Plaintiff suffered critical loss of 5 mcome. 6 V. THE POLICIES 7 24. The properties located at 644 Broadway and 660 Broadway are insured by 8 Defendants under Falls Lake Master Policies issued through the CIBA Insurance Program 9 covering the period from January 1, 2020 to Januaiy 1, 2021 (the "Policies"). True and IO correct copies of the Policies are attached hereto as Exhibit A (644 Broadway) and Exhibit 11 B (660 Broadway) and are incorporated herein by this reference. 12 Plaintiff obtained the Policies to ensure that it \Vould be reimbursed for lost 13 rental income in the event that its property became untenantable and its tenants failed to 14 pay their rent ]5 26. Plaintiff faithfully paid premiums to Defendants on the Policies. 16 27. The Po1icies are "all-risk" property insurance policies, meaning that they 17 broadly cover risk of loss of or damage to Plaintiff's property, w1less a coverage exclusion l8 applies. 19 28. Under the terms of the Policies, Defendants agreed to provide coverage for 20 Plaintiffs "Real and Personal Property'' against "all risks of direct physical loss or damage 2] excluding 'flood' and 'earih movement' occurring during the policy period." (Ex. A and 22 B, p. 6 of Falls Lake ]\faster Policy). 23 29. Defendants further agreed to insure Plaintiff against "the actual Loss of 24 Income sustained by the Named Insured resulting directly from the necessary 25 untenantability caused by direct physical loss, damage, or destruction by any of the perils 26 covered herein during the term of the policy to real or personal property .... " (Ex. A and B, 27 para. 6(b)( I) of Falls Lake Master Policy). 28 5 COMPLAINT FOR BREACH OF CONTRACT AND DECLARATORY REUEF Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 9 of 197 1 30. "Income" is defined in the Policies as "the sum of: (a) [t]he gross rental 2 income from the rented po1iions of such property according to bona fide leases, contracts 3 or agreements in force at the time of the loss; (b) the fair rental value of any portion of the 4 property occupied by the Named Insured; and, (c) [i]ncome from loss of monthly 5 condominium fees, but only if stated in the Declarations page Less non-continuing charges 6 and expenses." Id. 7 31. The Policies also include a section entitled "Provisions Applicable to Loss 8 of Income and Extra Expens~." (Ex. A and B, para. 6(d) of Falls Lake Master Policy). 9 Under that section, the Policies include an "Interruption by Civil or rvhlita1y Authority" IO provision, pursuant to which Defendants agreed to "cover the actual loss sustained and 1 11 necessary Extra Expense incurred during the period of time when, as a direct result of 12 physical damage within five ( 5) miles of the premises by a peril insured against, access to 13 the 'described premises' is prohibited by order of civil or military authority .... " (Ex. A 14 and B, para. 6(d)(2) of Falls Lake Master Policy). 15 32. The ''Provisions Applicable to Loss oflncome and Extra Expense" section 16 of the Policies also include an "Ingress/Egress" provision, which provides: "[t]his policy is 17 extended to cover the actual loss sustained and necessaiy Extra Expense during the period 18 of time when, as a direct result of physical damage within five ( 5) miles of the premises by 19 a peril insured against, ingress or egress from the 'described premises' is thereby 20 prevented .... " (Ex. A and B, para. 6(d)(3) of Falls Lake Master Policy). 21 33. In summaiy, under the Policies, when a peril covered under the policies- 22 such as an unanticipated crisis and governmental shutdovm of Plaintiffs tena11ts' 23 businesses and anti-eviction orders--causes "direct physical loss or damage" to Plaintiffs 24 property resulting in "necessaiy untenantability"-such as Plaintiffs tenants' inability to 25 pay rent due to their inability to access their facilities, to allow customers on their 26 i "Extra Expense" is defined as "reasonable and 11ecessa1y expenses incurred by the 27 Named Insured during the period of interruption that the Named Insured would not have incurred if there had been no direct physical loss or damage to property caused by or 28 resulting from a peril insured against." (Ex. A and .B, para. 6(c) of Falls Lake t\-1aster Poiicy). 6 COMPLAINT FOR BREACH OF CONTRACT AND DECLARATORY REUEF Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 10 of 197 1 premises, and to otherwise operate their businesses, along v,1th Plaintiffs inability to rent 2 to new tenants who could pay rent-Defendants are obligated to pay Plaintiff for Loss of 3 Income and Extra Expense it suffers during the time its premises are untenantable. 4 VI. PLAINTIFF'S CLAIM AND DEFENDANTS' RESPONSE 5 34. On or about April 6, 2020, Plaintiff made a claim under the Policies for 6 losses suffered as a result of the Executive Orders (the ''Claim"). Plaintiff provided 7 additional information on its Claim on June 23, 2020. 8 35. On July 14, 2020, Defendants responded to Plaintiffs Claim. (A copy of 9 Defendants' July 14, 2020 letter is attached as Exhibit C.) In their response, Defendants 10 admitted that "Loss oflncome coverage requires that actual Loss ofincome result directly 11 from the untenantability caused by direct physical loss, damage, or destruction ... to real or 2 12 personal property as described in 6. a." (See Ex. C, p. 2.) . 13 36 . Defendants' letter also conceded that "Extra Expense coverage requires that 14 r~asonable and necessaiy expenses would not have occurred if there had been no direct 15 physical loss or damage to property caused by or resulting from a peril insured against" 16 and that "the policy provides coverage as a result of prohibited access because of 17 Interruption by Civil or Military Authority ... [if] the expense [is] incurred as a direct result 18 of physical damage \\~thin five (5) miles of the premises by an insured peril insured 19 against." (See Ex. C, p. 2.) 20 37. However, despite these admissions as to the policies' language, Defendants 21 concluded that "[t]here is no coverage for your claim as there was no direct physical loss to 22 real or personal property at the insured premises; no physical damage within five (5) miles 23 of the insured premises by a peril insured against and, there were no governmental 24 agencies or other similar authorities requiring emergency evacuations due to an impending 25 insured peril threatening imminent physical danger or loss of life." 26 38. Defendants' response to Plaintiffs Claim misrepresented both the terms of 27 the Policies and the true cause of Plaintiff's losses. 28 2 6 a. of the policies discuss types of property insured. 7 COMPLAINT FOR BREACH OF CONTRACT AND DECLARATORY RELlEF Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 11 of 197 1 39. Under the terms of the Policies, Plaintiff has suffered "Loss of Income" due 2 to "untenantability" caused by both "direct physical loss" and "damage to" its property as a 3 result of the Executive Orders. 4 40. The Policies do not define "untenantability," "damage," or "loss;" therefore, 5 under well-recognized, undisputed rnles of construction, those terms are to be given their 6 generally understood meaning, and any ambiguity should be construed in favor of 7 coverage for Plaintiff and against Defendants, who selected the language for inclusion in 8 their adhesion contracts. 9 41. "Untenantable" means ''a condition. of premises rendering them unfit for the JO purpose for which they were leased, particularly where the lease expressly designates the 11 use to be made of the premises. It is a condition of premises rendering them w1fit for 3 12 occupation for any worthwhile purpose. '' 13 42. The Executive Orders described herein undeniably rendered Plaintiff's 14 premises unfit for the commercial purposes for which they were leased by preventing 15 Plaintiff's tenants from running their businesses and preventing customers from occupying 16 the property. The government shutdowns and the moratorimil on evictions further 17 prevented Plaintiff from using its property as income-earning rental property. 18 Accordingly, the property was made "untenantable" as a result of the Executive Orders. 19 43. Moreover, "loss" and "damage" are two distinct concepts; indeed, if the 20 terms were synonymous, there would be no need to include both in the Policies' language, 21 separated by the disjunctive "or." 22 44. Common dictionary definitions of "loss" include "deprivation" and "the 4 23 harm or privation resulting from loss or separation." 24 45. Common dictionary definitions of "damage" include the "harm caused to 5 25 something in such a \vay as to impair its value, usefulness or normal function. " 26 27 3 See https://defi ni tions. us legal. com/u/untenantable-condition/. 28 1 ' See https://v... ww. merriam-webster.com/dictionary/loss. s See https://wv.rw.lexico.com/en/definition/damage. 8 COMPLAlNT FOR. BREACH OF CONTRACT AND DECLARATORY REUEF Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 12 of 197 1 46. The events described herein have unquestionably deprived Plaintiff's 2 tenants of access to, and have separated Plaintiffs tenants from, their businesses and have 3 resulted in Plaintiffs tenants' inability to pay rent. Additionally, the Executive Orders 4 making the property W1fit for the purposes for which they were leased, combined with San 5 Francisco's moratorium on evictions for non-paying small and medium-sized businesses, 6 made the property untenantable. Therefore, under commonly accepted English usage, 7 Plaintiff has suffered both "loss of' and "damage to" its insured premises, resulting in 8 "untenantability" of Plaintiffs property. 9 47. "Direct" and "physical" are not defined terms in the Policies. "Direct" is 10 commonly understood to mean "without deviation or interruption" and "physical" means 11 "perceived through the senses" and "relating to the body." Applying these standard 12 meanings, a direct physical loss is a deprivation that is uninterrupted and relates to the 13 body. This is exactly what Plaintiff has suffered. The inability to gain access to the 14 insured property deprived Plaintiff of the ability to have bodies physically present on the 15 property without interruption. 6 16 48. Put simply, the Executive Orders caused Plaintiff to suffer both (a) direct 17 physical loss, and, (b) damage to, its property because the Executive Orders deprived 18 Plaintiff's tenants of access to their property, prevented Plaintiff's tenants' customers from 19 physically occupying Plaintiffs tenants' property, and prohibited Plaintiff's tenants from 20 operating their businesses, resulting in Plainti:ff's tenants' inability to pay rent, which 21 thereby impaired, and in fact nearly eliminated entirely, the normal function and value of 'Y) ,t..,,.;.., Plaintiffs business property. 23 49. Because Plaintiff suffered both direct physical loss and damage to its 24 property, resulting in untenantability of the property, it has experienced a covered loss and 25 is entitled to reimbursement under the Policies. 26 50. For these same reasons, Defendants are obligated to provide coverage w1der 27 the "Civil or \-:lilitary Authority" provision in the Policies. 28 6 Sec https//www.lexico.com/en/definition/direct. 9 COl\'lPLAIN'f FOR BREACH OF CONTRACT AND DECLARATORY REUEf Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 13 of 197 1 51. As set forth above, the Executive Orders are a "peril insured against." 2 Moreover, there are numerous establishments within five miles of Plaintiffs property that 3 have similarly suffered physical loss and damage to their premises caused by this "peril 4 insured against." Accordingly, the Executive Orders that have prohibited access to 5 Plaintiffs tenants' premises trigger the "Civil or Militaiy Authority" provision of the 6 Policies. 7 52. Further, coverage is similarly provided under the "Ingress/Egress" provision 8 of the Policies, as the Executive Orders requiring the shutdmvn of Plaintiff's tenants' 9 facilities and other businesses located within five miles of Plaintiffs premises physically 10 obstructed and prevented physical ingress or egress to Plaintiffs tenants' facilities, 11 resulting in an w1tenantability of Plaintiffs property. 12 vu. THE CONTAMINATION EXCLUSION 13 In their response to Plaintiff's Claim, Defendants asserted that Plaintiff is 14 not entitled to coverage under the Policies for the additional reason that Plaintiffs claim 15 may be precluded by a ''Contamination Exclusion" provision in the Policies. (S'ee Ex. C, p. 16 2-3.) 17 54. This exclusion states that the Policies do not provide coverage for "actual, 18 alleged or threatened release, discharge, escape or dispersal, seepage or migration of 19 'contaminants or pollutants' .... " (See Ex. A and B, 7(c) of Falls Lake Master Policy). 20 55. ·'Contaminants or Pollutants" are defined as "[a]ny solid, liquid, gaseous or 21 thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste, which after its release can cause or threaten damage to human health 23 or human welfare or causes or threatens damage, deterioration, loss of value, marketability 24 or loss of use to property insured hereunder, including but not limited to bacteria, virus, or 25 hazardous substances ... '." (id, 43(d)) 26 56. Plaintiff has made no claim of any type of contamination, and is in fact 27 unaware of any contamination by SARS-CoV-2 or any other virus on its premises. 28 57. Plaintiff did not lose any rental income due to viral contamination. COMPLAINT FOR BREACH OF CONTRACT AND DECLARATORY RELIEF Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 14 of 197 1 58. As a result, Plaintiffs losses fall outside the ambit of the Contamination 2 Exclusion, because they were not caused by contamination by SARS-CoV-2. To the 3 contrary, the untenantability of Plaintiff's property \Vas caused by, and the direct result of, 4 the orders of ci vii authorities in California closing Plaintiff's tenants' facilities, directing 5 consumers to stay at home, and preventing Plaintiff from finding new paying tenants. 6 59. lt is Defendants' burden to prove that Plaintiffs Claim is precluded by the 7 Contamination Exclusion, and that burden cannot be met here. 8 .FIRST CAUSE OF ACTION 9 (BREACH OF CONTRACT: COVERAGE OF PROPERTY DA1'v1AGE CLAIMS) IO 60. Plaintiff repeats and realleges the allegations of paragraphs l through 59 as 11 though fully set forth herein. 12 61. The Policies are insurance contracts under which Plaintiff paid premiums in 13 exchange for Defendants' promise to pay Plaintiff's claims for losses covered by the 14 Policies, such as business losses incurred due to government orders that resulted in the 15 untenantability of Plaintiff's property. 16 62. The Policies require Defendants to provide coverage to Plaintiff for "Loss 17 ofincome'' and "Extra Expense," as part of which Defendants are obligated to pay Plaintiff 18 for the loss of income suffered while Plaintiff's building was "untenantable" as a result of 19 the Executive Orders. 20 63. Plaintiff has complied with all applicable provisions of the Policies, 21 including payment of premiums in exchange for coverage under the Policies, and yet Defendants have failed to fulfill their insurance coverage obligations under the terms of 23 Policies. 24 64. By indicating that it would not provide coverage for any losses or damage 25 incurred by Plaintiff in connection \\:1th the Executive Orders, Defendants have breached 26 their coverage obligations under the Policies. 27 WHEREFORE, Plaintiff seeks an award of compensatory damages in the amount 28 of its Loss of Income and Extra Expense, together with costs sustained herein. 11 COMPLAINT FOR BREACH OF CONTRACT AND DECLARATORY REUEF Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 15 of 197 1 SECOND CAUSE OF ACTION 2 (BREACH OF CONTRACT: OWERAGE OF CIVIL AUHIORJTY CLAIMS) 3 65. Plaintiff repeats and realleges the allegations of paragraphs 1 through 64 as 4 though fully set forth herein. 5 66. The Policies are insurance contracts under which Plaintiff paid premiums in ' 6 exchange for Defendants' promise to pay Plaintiff's claims for losses covered by the 7 Policies, such as business losses incurred due to government orders that resulted in the 8 untenantability of Plaintiffs property. 9 67. The Policies require Defendants to provide "Loss of Income" and "Extra 10 Expense" coverage to Plaintiff, as part of which Defendants are obligated to pay Plaintiff 11 its lost rental income caused by actions taken by a civil authority that prohibited access to 12 Plaintiff's premises, resulting in Plaintiffs' tenants' failure to pay rent and the 13 "untenantability" of the prope1iy, where those actions by a civil authority were taken in 14 response to a peril insured against within five miles of Plaintiff's property. 15 68. The Executive Orders constitute actions of civil authorities prohibiting 16 access to Plaintiffs property, and Plaintiff's Claim otherwise meets the requirements for 17 coverage under the Civil or Military Authority provision of the Policies. 18 69. Plaintiff has complied with all applicable provisions of the Policies, 19 including payment of premiums in exchange for coverage under the Policies, and yet 20 Defendants have failed to fulfill their insurance coverage obligations under the terms of the 21 Policies. 22 70. By indicating that they would not provide coverage for any losses or 23 damage incurred by Plaintiff in connection with the Executive Orders, Defendants have 24 breached their coverage obligations under the Policies. 25 WHEREFORE, 'Plaintiff seeks an award of compensatory damages in the 26 amount of its Loss of Income and Extra Expense, together vvith costs sustained herein. 27 THIRD CAUSE OF ACTION 28 (BREJ\CI-1 OF CONTRACT: COVERAGE OF INGRESS/EGRESS CLJ\1MS) 12 COMPLAINT FOR BREACH OF CONTRACT AND DECLARATORY RELIEF Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 16 of 197 1 TI. Plaintiff repeats and realleges the allegations of paragraphs l through 70 as 2 if fully set forth herein. 3 72. The Policies are insurance contracts under which Plaintiff paid premiums in 4 exchange for Defendants' promises to pay Plaintiff's claims for losses covered by the 5 Policies, such as business losses incurred due to government orders that resulted in the 6 untenantability of Plaintiffs property. 7 73. The Policies require Defendants to provide Loss oflncome and Extra 8 Expense coverage to Plaintiff, as part of which Defendants are obligated to pay Plaintiff 9 for its lost rental income and extra expense as a result of an insured peril preventing ingress 10 or egress to Plaintiff's property. 11 74. The Executive Orders were an insured peril preventing ingress and egress to 12 Plaintiffs property, and Plaintiffs Claim otherwise meets the requirements for coverage 13 under the Ingress/Egress provision of the Policies. 14 75. Plaintiff has complied with all applicable provisions of the Policies, 15 including payment of premiums in exchange for coverage under the Policies, and yet 16 Defendants have failed to fulfill their insurance coverage obligations under the terms of the 17 Policies. 18 76. By indicating that they \Vould not provide coverage for any losses or 19 damage incurred by Plaintiff in connection with the Executive Orders, Defendants have 20 breached their coverage obligations under the Policies. 21 WHEREFORE, Plaintiff seeks an award of cornpensato1y damages in the 22 amount of its Loss oflncome and Extra Expense, together with costs sustained herein. 23 FOURTH CAlTSE OF ACTION 24 (Declarato1y Judgment: The Policies have been triggered by direct physical loss and/or 25 damage to Plaintiffs property and the Policies' contamination exclusion does not 26 apply) 27 28 13 COMPLAINT FOR BREACH OF CONTRACT AND DECLARATORY REUEF Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20 Page 17 of 197 1 77. Plaintiffrepeats and realleges the allegations of paragraphs 1 through 76 as 2 if fully set forth herein .. 3 78. The Policies require Defendants to provide Loss oflncome and Extra 4 Expense coverage to Plaintiff:~ as pmi of which Defendants are obligated to pay Plaintiff 5 the loss of rental income suffered while its property was "untenantable" as the result, of the 6 Executive Orders. · 7 79. Plaintiff has made a Claim for coverage for its lost rental income under the 8 terms of the Policies. 9 80. Defendants have asserted that Plaintiff is not entitled to its lost rental 10 income because it did not suffer direct physical loss or damage to its covered property. 11 81. Plaintiff suffered both direct physical loss and damage to its property, as 12 Plaintiffs property was rendered "untenantable" by the Executive Orders preventing 13 Plaintiff's property from being used for its intended purpose as commercial rental prope1iy 14 that \vould provide a location for Plaintiffs tenants to serve dine-in customers and bar and 15 theater patrons, thereby generating rental income for Plaintiff 16 82. Defendants have also asserted that Plaintiffs Claim for coverage unqer the 17 Policies is precluded by a contamination exclusion in the Policies. 18 83. The contamination exclusion is not applicable to Plaintiffs Claim because 19 Plaintiff's rental income losses were not caused by, and did not result from, contamination 20 by the SARS-CoV-2 virus. 21 84. As set fo1ih above, true controversy exists between the parties concerning 22 the parties' rights and obligations W1der the Policies. 23 \VHEREFORE, Plaintiff prays for judgment against Defendants as set forth below. 24 FIRST, SECOND AND THIRD CAUSES O:F ACTION 25 l. For general, special and compensatory damages, in the amount of its Loss 26 oflncorne and Extra Expense, in excess of the jurisdictional minimum of this Court; 27 28 14 COMPLAINT FOR BREACH OF CONTRACT AND DECLARt\.TORY REUEF Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 18 of 197 1 FOURTH CAUSES OF ACTION 2 For a _judicial declaration of the rights, duties, and obligations of the parties 3 under the Policies and a determination that the Loss oflncome and Extra Expense, Civil or 4 Military Authority, and Ingress/Egress provisions of the Policies have been triggered by 5 direct physical loss and damage to Plaintiffs property and the property of others that 6 resulted in the untenantability of Plaintiffs property, and that the contamination exclusion 7 does not bar coverage of Plaintiffs claim. 8 9 JURY DEMAND ]O Plaintiff demands a trial by jury of all claims in this Complaint so triable. 11 Dated: September 30, 2020 Respectfully Submitted, 12 13 JASZCZUK, P.C. 14 15 16 17 18 Dated: September 30, 2020 MOLLICA LAW 19 20 By: 2] Terry J. ¾iollica Attorney's for plaintiff 644 22 BROADWAY, LLC 23 24 25 26 27 28 15 COMPLAINT FOR BREACH OF CONTRACT AND DECLARATORY REUEF Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 19 of 197 tililiffl Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 20 of 197 I I Falls Lake National Insurance Company Stock Insurance Company 6131 Falls of Neuse Road Suite 306 Raleigh, NC 27609 1-800-780-7 454 www.fallslakeins.com In Witness Whereof, the Falls Lake National Insurance Company has caused this policy to be executed and attested, and if required by state law, this policy shall not be valid unless countersigned by our authorized representative. Secretaiy President CPJ 00 02 00 12 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 21 of 197 Prope:rty Policy FALLS LAKE NATIONAL INSURANCE COMPANY (..:".l. Stock 1nsur;~nce Co.mpany. hereinafter t.hc ·•Compan/) 61 Tl Falls of Neuse .Road; R::deig:h. ·Ne 276(}9 Toll-free number: 1-SOU-780-7454 POLICY DECLA_R.,\TIONS Policy Number: CIBA-000002-00 1. NAi\-1ED INSURED and lvL\ILING ADDRESS: Tht J\frrnber uf Commercial Industrial Building Owner-'s Alliance, Inc. ("CIBA") holding valid evidence of Commercial Property Insurance as issued by CIBA Insurance Services, Inc. on behalf of the Company. 655 N Central Avenue #2100 Glendale. CA 91203 2. POLICYPERIOD: Tvbrch.31,2019 to March3l,2020 Coverage for individual lnsurccl Member is limited to 12 Months for Risks attaching during ihc period March 31, 2019 to March 31, 2020, beginning and ending 12:01 AJvI at the location of the property insured as further defined herein. Individual Insured :rviember(s) will attach at any time for a period not exceeding 12 months during the pe1iod March 31, 2019 to March 31, 2020, beginning and ending 12:01 Alvl at the location of the property insured. 3. INTERESTS COVERED: .All Risk Property Coverage 4. POLICY LIMITS: $3,000,000 per occurrence; Policy Agg:regate - The Company will pay all iosses subject to the per occurrence lirnit not to exceed the tornl prern.ium }aid for all }oiicies issued bv the Com·Jan · and its affiliates tO the named insured DEDUCTIBLES: As per Deductible Endorsement. 5. PERILS: AH Risks of Direct Physical Loss or damage excluding Flood, Earthquake and Equipment Breakdown. 6. COVERAGES: l. Real Property 2. Business Pcrson,11 Property 3. Loss of Income 4. bxtra l:.xpcnsc :i. Provisions 1\pplicable To Loss oflncome and Extra Expense 6. Accounts Rcceiv,1ble "Electronic D,m1 Processing Equipment." and "Electronic Data Processing \fcdia'' 8. "Fin.e Ans'' 9. Valuable Papers :md Records ·t 0. F.,n1ergcncy \'ac,11.ing l:~xpcnse J J. Locks and Kev:, .12. Increased Tax Li:1bilirv for Rcnral Income 13. Argm Reward 14. lhck Up or Ovc-rflow of Sewer r,r Dr:1ins 13. Business Personal Prnpertv \\'bile Off Prtmisl's or 1n Tracsir Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 22 of 197 PALLS LAKE iNSURAJ\!CE COMPANIES P:ropel"ty Policy 8. FORMS AND ENDORSEMENTS: Endorsement No. 1 -• Extension of Sublimit Endorsement Endorsement No. 2 -- Deductible Endorsement Endorsement No. 3 - lnclusion of N:imcd \vindstorm Coverage Endorsement Endorsement No. 4 - Service of Suit. Endorsement Endorsement No. 5 ····· Exclusion of Certified Aets of Terrorism Endorsement No. 6 - CIBA Prnperty Endorsements Forms .List CIBA. Grandfathered Location 9. DATE ISSUED: Broker: CRC Insurance Services, Inc. Property Divisi(,n l0375 Ricbmond Avenue, Suite 500, .Houston, TX 77042 This policy may be subject to surplus lines taxes, stamping fees, surcharges, and certain surplus lines reporting requirements mandated by state regulation. The Surplus Lines Broker is responsible for the disclosure of all related taxes, surcharges, and fees. The Surplus Lines Broker is also responsible for the applicable surplus lines reporting requirements including bm not limited to the submission of diligent search forms. This policy is issued by a surplus lines insurer. In the event of insolvency of the insurer, this insurance is not covered by the Guaranty Fund or Guarantee Association. Jn consider:1tion of the payment of premium and in rdiance upon statcrncm.s made in the appiicdon, this policy including all endorsements issued herewith shall constitute the contract. between Company and the Named Insured. This policy is valid only if signed below by a duly authorized representative of the company. PRESIDENT SECRETARY Terence :VlcC1ffcrtv Eric Lihnd Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 23 of 197 P:ropexty Policy CHOICE OF LAW AND JURISDICTION: [n the event of any dispute arising bet.ween the Named Insured and Insurer concerning this policy, tbe follow.ing L:rn· and Jurisdiction clause shall apply: Law: This policy shall be subject to the applic,1b.le stare law for tJ1e insured location as identified in t.bc Declarations page by its "Prc,perty :Identification Number". Jurisdiction: Jurisdiction over such dispute will with the st.ate ia,v for the insured location as identified in the Declarations page by its "Property Identificuion Number". Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 24 of 197 Property Policy SERVICE OF SUIT CLAUSE (U.S.A.) It is ,1gteed thnt in the event of rl1e Failure oE this Company hereon r.o pay any amount: claimed to be due hereunck,r, this Cr,mpany hen:,c,n, ar the request of the Insured_ wiil rnbrnit. m the ju::isdict.ion of any court of compe,.ent jurisdiction ,vith the United States of i\mc:rica and will comply with ,1H requirements necessary to give such Coul:1' jurisdiction and aU matters :irising hereunder siuU be determined in accordance with the bw and prnctice of such Court. It is forther agreed that. service r,fprou:ss in such suit. may b,: mack upon the Company Presidents, or r.hcir norninees. In any suit against any one of them upon this policy, the Cornpany will abide by the foul decision of such Coun. or any Appd.late Courr in d1e event of an :ippeal. Company Presidents, or their nominee$ are aut:hori:z.ed and directed t:o accept service of process on behaif of rhe Comp:inies in any such suit ,rnd/ or upon the request of the Insured r:o give a wtir:ten undertaking to the Insured r.hat it or they will enter a general. appearnnce upon rhc Cor:npany's behalf in rhe event such a suit shall be .i.r.1stitm,xl. Fmther, pursu,rnt to any St'.ltuc: of ,my sr.ar:e, tenir.ory or distticr: of the United St:1tes of J\merirn, \\'11ich makes provision thetefr:,re, this Company bereon berehy desig11'.lr:es r.he Superinr.endenr, Commissioner or Director oE Insurance of other c,fiict:t specified fr>r tha,. ptirpc,sc in the· stature or his successor or successors in office, as ,.heir rxue and Jav:fui att:ornty upon \\"hom nuy be served any iawfd process in any action, suit c,r proceeding instituted by Cir on bt:half of the Insured or any beneficiary hereunder arising out or this contract 0F.insnr:u1c,:, and hereby designat.,: the above .n,ur:cd as rhe per:,on t.o whom the s,iid officer is mnholized to rrnd such process or a ,.rue copy thereof. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 25 of 197 Property Policy PREMIUM PAYMENT CLAUSE The Named Insured as set forth on the Declarations page of Lliis policy undertakes that premium will be paid in foll to CIBA Insurance Services Inc. on behalf of the Insurer within 30 (thirty) days of inceptfon of this policy (or. in respect of installment premiurns, when due). ' If the premium due under this policy has not betn so paid to CIBA Insurance Strvices Inc. on behalf of the Insurer by the 30th (thirtieth) day from tl1e inception of this policy (and, in respect. of installment: premiums, by the date they are due) tl1e Insurer shall have the right to cancel this policy by notifying the specific Named Insured via CIBA Insurance Services, Inc. in writing. In the event of cancellation, premium is due to the Insurer on a pro rata basis for d1e period that tl1e Insurer is on risk but the full policy premium shall be payable to tl1e Insurer in r:he event of a loss or "occurrence" prior to the date of termination which gives rise to a valid claim under this policy. It is agreed that the Insurer shall give not less than 10 days prior notice of cancellation to the Named Insured via CIBA Insurance Services, Inc. If premium due .is paid in foll to the Insurer before the notice period expires, notice of cancellation shall automaticaUy be revoked. If not, the policy shall automatically tem1inate at the end of tl1e notice period. If any provision of tbs clause is found by any court or administrative body of competent jurisdiction to be invalid or unenforceable, such invalidity or unenforce:1biliry will not affect the ot11er provisions of this clause which will remain in foll force and effect. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 26 of 197 Property Policy ALL RISK PROPERTY COVER.A.GE FORM CIBA-2019 Subject to tht tei111s, conditions, limitations and txclusions hereinafter contained or added by endorsemem(s), this Policy insures Real and Personal Property (including lmprovements and Betterments) of t:he Named Insured, or property for which the Named Insured may be held legally liable, against ALL RISKS OF DIRECT PHYSICAL LOSS OR DAMAGE EXCLUDL'\!G "FLOOD" 1\ND "EARTH MOVE\1ENT" occurring during the policy period. The word "Underwriter(s)", lnsurer(s)" or "Company" \vherever it appears in tbis policy means die schedule of participating insurers referenced in the Appendix attached to and forming part of this policy and subject to any notices comained herein. \1(iherever '$' or USD appears herein these are deemed to read 'United States Dollars' Named Insured: Per the Declarations page of this policy Mailing Address: Per t.1-:ie Declarations page of t.1-:iis policy 1. POLICY PERIOD In consideration of pre111ium paid, this policy attaches and ~overs for the period as set. forth in rJ1e Declarations page begin.ning and ending at 12:01 AM., Standard Time, at the location as set forth in the Declarations page. 2. LIMITS OF LLIBILITY a. The Com.pany shall not be liable in any one "occurrence" for more than the limits set forth in the Declarations page or endorsed hereafter except for interests, or perils, wbich ate sub-limited in clause 2.b. or further sub-limited by endorsement(s) to this Policy. b. Sub-limits of Liability Inclusive within t.1-:ie lirnits of liability stt forth in tht Declarations page are the following sub-limits unless otherwise stated .in the Declarations page or endorsed bereaftet: (1) Valuable Papers & Records $ 100,000 (2) Accounts Receivable $ 250,000 . (3) Professional Fees ~ l00,000 (4) Landscaping, Trees, Shrnbs, Plants and Lawns $ 250,000 further sub-liniited maximum per item limit. of: Per Tree or Lawn $ 10,000 Per Shrub or Plant $ 500 (5) Emergency Vacating Expense $ l00,000 (6) T('.nant Relocation Expcn~c: $ l 00,000 subject to a maximum paymenr per unit of $ 5,000 (7) Locks and Keys $ 25,0!)0 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 27 of 197 Property Policy (8) Pools, tennis courts, playgrounds, recreational equipment $ 500,000 (9) Pollution Cleanup and Removal Costs $ 100,000 except for .Asbestos Removal which is fortl1er Ernited to $ 25,000 (10) Debris Removal Costs And Expenses 25'¾, of adjusted loss amount: not to exceed $5,000,000 (11) Builcling Ordinance, Demolition & Increased Cost Of Construction - The following sub-limits apply to Building Ordinance, Dernolition & Increased Cost of Construction except as otl1er,vise stated in the Declarations page or endorsed hereafter: Coverage J\: Uncbmagcd Portion $ lncluded Coverage B: Demolition $ ·100,000 Coverage C: Increased Cost of Construction s 100,000 CoverngeD: Loss oflncome $ 50,000 (12) Additions under consu-uct:ion, alterations and repairs to Real $ 25,000 Property, including materials, equipment: and supplies, except as othenvise stated in tile Deciarations page or endorsed hereafter (13) Business Personal Property including "Fine Arts", except as o±erwise stated in the Declarations page or endorsed $ 100,000 hereaft.et (14) Mold, Fungi, Wet or Dry Rot and Bacteria $ 10,000 (15) Off-Premises Services Interruption $ 100,000 (16) Fire Fighting Materials or Expenses $ 100,000 ¾ (17) Increased Tax Liability for Rema] Income ·w 25,000 (18) Arson Reward 10% of Adjusted chim; not to exceed $25,000 (19) Back Up or Ovcrflqw of Sewers and Drains, except ;is $ 100,000 othenvise stated in the Declarations p,1ge c,r endorsed hereafter (20) Expedir.ing Expense 3. DEDUCTIBLE a. E-acb submitted claim for bss, d,11nage or expense ,nising nut of :my one "c,ccurrence" at the insured lodrion, as identi£ied by its "Pmputy lckntificatiun Number'', shall be adjusted as one claim. The Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 28 of 197 Property Policy Company \vill not pay for loss, damage or expense under :my coverage until the amount of the covered loss or damage exceeds the deductible amount indicated for that coveragt in the Declarations pagt or endorsed hereafter. The Company will then pay the am.ount of covered loss, damage or expense in excess of the applicable deductible amount, subject to the applicable limit or sub-limit indicated in the Declarations page or endorstd hereafter. b. If t.\VO or more deductible :-tmoums apply to a claim at a single location, d1e total to be deducted shil.l not exceed the largest deductible that applies, with such larger deductible being applied to t.'le entire loss at the insured location. 4. LOSS PAYABLE Loss, if any, shall be adjusted with and payabie to the specific Named fosured, through Claims Adjusting Group. The Narned Insured's receipt of loss payment shall constitute a release in full of all liability under this policy ,vith respect to such loss. 5.. TERRITORY TI1is policy covers insured loc:11.ions within the fifry star.cs of the United States of America, and the District of Columbia. 6. COVERAGE Except. as hereinafter excluded, this policy covers the following described property including the actual Loss of Income sustained by the Named Insured at. location(s) described in the applicable Declar:ir.ions page issued to · the Named Insured a. (1) Real Property The interest of the Named .Insured in all real propcny, including irnprovements and bettcrmems, foundations and suppon.s, flues, wiring and plumbing, owned, used, or intended for use by the Narned 1nsurccl, or hereafter constructed, erected, or installed. If not covered by other insurance: (a) additions under const11.1etion, alteration~ and repairs to ·'buildings" or structures and (b) materials, equipment, supplies and ter:nporary stxuctures, on or within 100 feet of the iocarion described in the Declarations page, used for making additions, alt.er:u.ions or repairs to the "l:mildings" or structures. In r.he event of Joss or damage, the Company agrees to accept and consider the Named Insured as sole and uncondition,11 owner of improvements and betterments, notwir.hsmnding any contract or leases to the contrary. The interest. of the Named Jnsurcd in th: Real Property of others in the Named Insured's care, custody, or control, and the Named Insured's liability imposed by law or assumed by written contract for such property. Contractors' .imcrest in real property is covered to the extent of the Named lnsured's liability imposed by hw or assumed by written contract. Person.11 property nwned by the N:unc:d :Insured that is used 10 maintain or service tJic "bui.ldings" or strncr:ures or the: premises, including fire extinguishing elJnipmcnt, out.door furniture, tloor ccrverings, and app.li~inces used for refrigerating;, vt.·ntilncing, cook11g, dishwash.ing or laundering. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 29 of 197 Prope:dy Policy (2) Business Personal Prope1iy The interest of the Named Insured in all business personal property, including "Fine Arts" and 'T~lectronic Data Processing Equipment" and "Electronic Data Processing Media", located in or on the "described premises" or vvi:hin l,000 feet of the "described premises", consisting of furniture :ind fixtures, machinc1y and equipm<':nt, computer hardw:1re and media and "Fine Arts". At the option of the Named Insured, personal property belonging or in use by the Named Insured's officials, employees and volunteers while at the "described premises". The inr:erest of the Named bsmed in the personal property of others in the Named Insured's care, custody or control, and the Named Insured's liability imposed by law or assumed by written contract for such prop<:rty. b. Loss of Income (l) This policy is extended to cover the actual Loss oflncome sustained by the Named Insured resulting directly from the necessary umenantability cmsed by direct physical .loss, damage, or destruction by :my of the perils covered herein during t'le term of the policy to real or personal property as described in clat1se 6. a., but not exceeding t.½e reduction in incorne less charges ,md expenses which do nor: necessarily continue during the .period of umenantability, not to be limited by the expiration date of this policy. For the purpose of this insurance "income" is defined as the sun.1 of: (rt) The gross rental income from r.he rented portions of such property according r.o bona fide leasts, contracts or agreements in force at the time ofloss; (b) The fair rental value of any portion of the property occupied by t.he Named In~ured; and, (c) Income from loss of monthly condominium fees, but ody if stated in the Declarations page Less non-continuing charges and expenses. (2) For purposes of determining the loss payable for Loss ofincome, the period of indemnity is denned as: (a) The period from the tin1e of direct physical damage insur<':d by t.½is policy to the time when, with due diiigence rtnd dispatch, physically damaged "buiidings" could be: (i) repaired or replaced, and (ii) business opcrn:ions could h.we commenced, not limited h\' r.he c:xpir:nion date c,f r.l1is policy. In no event will the pe.1:iod of indemnity cxc<'cd twenty-four (24) monrhs from r.hc dare c,f ioss. (3) For purposes of deten11ining the loss pay:1bk for alterations or addir.ions to existing property and for pro_pcTt:y under the course of constn.1nion, the rent:11 valne will be ckterm.ined from: Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 30 of 197 FALLS LAKE INSURANGE COMPANIES, Property Policy (a) The period of time of direct physical damage not excluded by this policy, when the property would have been completed if the direct physical loss or damage had not occurred, to the time when, with due diligence and dispatch, physically damaged alterations, additions or "buildings" could be: · repaired or replaced, and business operations could have commenced had no physical damage occurred to the covered property. (4) The period of interruption: (a) will include that period for which physically damaged or destroyed building materials and supplies ate replaced, and (b) the additional time required for the demolition and removal of debris. (5) Expense to reduce loss: This policy also covers such expenses :i.s are necessarily incurred for the purpose of reducing any loss under this policy. Such coverage, however, shall not exceed the amount by which the loss under this policy is thereby reduced. (6) Experience of the business: In determining the amount of income covered hereunder, due consideration shall be given to the rental experience before tht date of darnage or destruction and the probable experience thereafter had no loss occmred. CT) Extended Period oflnclemnity This policv covers the acnial loss of income sustained during the period that begins on the date the property is actually repaired, rebuilt or replactd and ends on the earlier of: (a) The date the property could, with due diligence and dispatch, be re-occupied on the same or equivalent rental terms and conditions that existed prior to such loss o:rdatnagc; (b) 180 days after the date the property is actually repaired. rebuilt or replaced. (8) Special Exclusion This section of the policy does not insure ,1gainst :my increase of k,ss which may be occasioned by the susptnsion, lapse, or rnncdimion of any lease, license, contract, or order nor for any increase of loss due to imerfrrence at the Named Insured's designated premises by strikers or other persons with rebuilding, rep,1iring, or replacing the property dan1:1ged or destroyed, or \\ith the resumption of comjnuation of business, or \,'ith the re-occupancy of the premises. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 31 of 197 P:rope:rty Policy c. Extra Expense Extra Expense means reasonable and necessary expenses incurred by t.he Named Insured during the period of intertupticm that r.he Named Jnsurcd would not have incurred if there h:1d been no direct physical loss or damage to property caused by or resulting from a peril insured against. Extra Expense docs not change, add, or otherwise alt.err.he limits of liability as set forth in r.he Decl.,'lrations page or in Clause 2. b. as set fc,n}1 herein. (1) The Company will pay necessary Extra Expense to avoid or minimize the suspension of business and to continue operntfons: (a) Ar: the "described premises"; or (b) At replacement premises or at temporary locations, including: (i) Relocation expenses; and, (ii) Costs to equip and opcrnt.e tl1e replacement or temporary locations. (2) The Company will pay necessary Extra Expense to minimize the suspension of bnsir1ess if tl1e Named Insured cannot com.inue operations; (3) The Cornpany ,vill pay necessary Extra Expense to repair or replace any property to the extent it.reduces d1e amount of loss tlmt otl1erwise would have been payable under this policy. tO tI1e extent it reduces the arnount of Joss that otherwise would have been payable under tl1is poljcy. (4) Tenant Reloc:ition Expense This policy is extended to cover relocation expenses .incurred by the Named Insured-to relocate residents, tenants or lawful occupants to other living quarters in the shortest possible time when rented space or .living quartcr(s) at a described location are made uninhabitable as a direct result of physical Joss or damage fror:n a peril insured by this policy. (a) Coverage is limited to r.he reasonable and necessary expense of: (i) Packing, sorting> and transport.at.ion cost for person~} property; (ii) Reestablishing new utility services, less refunds from discontinued scrvjces, at the dan1agcd locarjon; (iii) Searching for new living quarters; (iv) Disconntcting and reconnecting fixrnrts and equipment; and, (y) Storage costs ,v}1ilc :l\vair.ing possession of other living quarters or restorarjon £>f existing quartt·rs. (b) No coverage is provided fr,r: (i) Loss Gn1scd bv the rerrnin,uion of ~1 Jease or other ~1green1ent~ Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 32 of 197 Property Policy (ii) Security deposits or otl1et payments made to the landlord or lessors of the new living quarters: (iiD Down paymenr:s, .legal fees ,md closing costs for the purchase of new living quarters; or; (iv) Loss resulting from Off Premises Services Interruption, Interrupt.ion by Civil or J\lilitary Authority, or IngTtss/Egress except as otherwise provided in Chmse 6 d. (l), (2), and (3). The limit of liability will not exceed the applicable lirnit of insurance shown 111 the sublimit.s of Clause 2.h. d. Provisions Applicable To Loss oflncome and Extra Expense (1) Off-Premises Services Ime11:uption This policy is extended to cover the actual loss sustained and necessary Extra Expense incurred during the period of time when, as a direct resrJr. of physical damage within five (5) miles of the premises by a peril insured against, electrical, steam, gas, water or telephone services to the "described premises" are imen:upted. (2) Interruption by Civil or lviilitary Authority This policy is extended to cover the ::tcmal loss sustained and necessary Extra Expense incurred during L½e period of time when, as a direct result of physical damage wit.ti.in five (5) miles of tl1e premises by a peril insured against, access to tl1e "described premises" is prohibited by order of dvil or militaty authority. TI1e maximum. period of indemnity in respect of this extension shall not exceed 30 consecutiY(: days from t.i-ie date of that order. This policy is extended t.o cover the actual loss sustained and necessary Extra Expense during the period of tirne when, as a direct result of physical dmnage within five (5) rniles of the premises by a peril insured against, ingress ro or egress from the ''described premises" is thereby prevented. The maximum period of indemnity in respect of tl1is extension shali not exceed 30 consecutive clays. e. Accounts Receivable Accounts receiv1ble .,re defined as: CJ) All sums due to the Named lnsrn:ed from cust.om,'.rs, pmvided the Named Insured-is unable m effect collection therec,f as the direct. result. c,f loss or damage r.o records of accoums receiYable; (2) Collenion expense in excess of normal collection cost and rnacle necessan, because of such loss or damage; and, , · (3) Other expenses, when reasonably ir1cm-rc·d by the Named Insured in re-est:ibiishing recurds of acconms receivabie follmving such ioss or damage. for the purpose of this insurance, credit card company charge media shail be deemed to represent sums due the Narn<:d Insured from customers, nnrii such charge rnedia is delivered to the credit card company. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 33 of 197 Prope:dy Policy \Vhen there is proof r.hat a loss of records of accounts rccci,,ablc has occurred, but. the Named Insured cannot more accurately establish tl1e total amount of accounts receivable outstanding as of the date of such loss, such amount shall be computed as follows: (a) The monrrJy average of accounts receivable during the i.ast available twelve months shall be adjusted in accordance with the percentage increase or decrease in the twelve montl1s average c,f monthly gross revenues which may have occurred in the int.erim; (b) The montl1ly amount of accounts receivable thus established shall be further adjusted in accordance with any demonstrable variance from tl1e rrverage for the particular month in which the loss occurred, due consideration also being given to tl-ie normal flucr.uations in the amount of accounts receivable witl1in die fiscal month involved. There shall be deducted from the total amount of accounts receivable, howtver established, the amount of such accounts evidenced by records not lost or damaged, or ot½en:vise established or collected by the Named Insured, :md an amount to allow for probable bad debts which \vou.kl normally have been uncollectible by the Named Insured. The limit o:f liability \viil not exceed the applicable limit of insurance shown in the sublimits o:f Gause 2.b. f. "Electronic Data Processing Equipment" and "Electronic Data Processing :Media" The following terms and conditions shall apply to electronic data processing coverage in addi1ion to tl1ose terms and conditions elsewhere in this policy fr,rm. In the evenr any of the following .is in conflict. with terms and conditions elsewhere in this policy form, the following tem.1s will supersede any ot.l-ier: (1) T'nc follmving is covered as inn of Business Personal Property: "Electronic Data Processing Equipment" and Electronic Data Processing ::\1edia" including the information recorded therein for direct loss or damage ;1nd for. any resultant. Extra Expense. (2) The following exclusions :ire added to this policy form. This policy doe~ not insure: (a) Loss or damage caus(;d by error in machine programming; (b) Loss or damage caused by or :irising out of infidelity by an employee of the Named Insured. A willful net of malicious intent. or damage caused by unauthorized enuy shall be deemed nor. to be an act of infidelity and shall be covered under this policy; (3) .How loss is set.tied: (a) "Electronic Data Processing Equipment" and "Electronic Data Processing :\Jedia" and information therein; The mc-asure of recovery shall be the cost of replacement or repruduction with other of like kind and CJtialiry; if nor rq,laccd or reproduced the Company will pay the bbnk vairn: of tht media. (b) Cxrra Expense The nece"sary extra c·xpense incurred by the Named Insured in order to continue a~ nc·:1rly as prnct.icai 1hc: nornul conducr r,f r.he Named "Insured's Darn Processing Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 34 of 197 Property Policy operation following loss or darrn,ge tn property covered"tmdcr this sect.ion of the policy by a peril not ot.hei,vise excluded, whether or not such Extra Expense reduces frie amount of ioss that would have othenvise been payable under t.l:ie business imerrupt.ion section of this pol.icy.. However, no payment shall be nude under t.his section if the same is otherwise collectible under t.l:ie business interruption section. g. "Fine i\rts" Coverage .is hereby provided as part of Business Personal Property for "Fine Arts" which are either frie "Fine Arts" of the Named Insured or the "Fine /\rts.,, of others in custody of t.l:ie Named Insured while at the locations designated elsewhere- in t.his policy (if any) or anywhere else \V1thin the tenitorial definition of this policy temporarily, and while on exhibition. In the everit of tht total loss of an.y article or articles which are a part of a set, the Company agrees to pay the Named Insnrtd tl1c full amount of the -due of such set, as specified in the Declarations page, and the Named Insured agrees to surrender the rernaining parts of the set to the Company. The limit ofl.iability for "Fine Ans" will not exceed $100,000 or the Business Personal Property Um.it, w1'ichever is Ll:ie lesser amount. h. Valuable Papeis and Records Tilis policy covers Valuable Papers. The following terms and conditions shall apply, as well as those tenns and conclitions elstwhere in t.l:iis policy form: "Valuable Papers and Records" are ddin<"d as written, printed, or otherwise inscribed documents and rtcorcls, induding, but not limited to, books, maps, films, drawings, abstracts, deeds, mongages, micro-inscribed documents, rnanuscripts and media but not including money and/ or securities. This extension dots not apply to valuable papers and records which exist as "electronic data processing media.'' The .limit of liability will not exceed the applicable Jimit of insur:mce shmvn in the sublimits of Clause 2.b. i. Emergency Vacating Expense This policy is extended to cover the reasonable expenses incurred by the Named Insured-when an authorized governmental agency or other similar authrn:ity orders the emergency evacuation of residents, temmrn or lawful occupants from an insured "building" as a result of an immediately impending insured peril t.hat thrc:mens imminent physical danger or Joss of life to such occupants, but not to exceed tlie applicable lirnit of insurance shown in the policy. No coverage is provided if the vacating results :from a phnned evacuation drill, evacuation of any resident because of a rncdical condition(s), or a false alarm. The limit. of liabilir:y will nor exceed the ,1pplirnble limit of insurance shown in the sublimits of Clause 2.b. j. Locks and Keys This policy is exttnded to CO\'er the reasonable and necessary expense incurred by die Named Insured for replacing locks and keys rtsuit.ing from insmed phys.ical lo~s or damage. CovcTage includes the actual cosr r.o: Rt:place; Adjust, Reprogram / Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 35 of 197 Propexty Policy Locks r.o accept ne,v keys or enrry codes. The limit of liability will not exceed the applicabk limit of insurance shown in the sublim.its of Clause 2.b. k. Increased Tax Liability for Rental Income This policy is extended to cover increased tax liability incurred by the Narned Insured-as a direct result of direct physical loss or chunage insured by this policy to property not cxdudcd by this policy on the covered loss of rent.al income portion of a loss recovery, if tl1c tax liability is great.er tbm the amount. that would have been incurred had no loss occurred. Tbs policy will cover only the increased tax liability for tl1e profit portion of the rental income loss. TI1e Emit of liability will not exceed the applicable limit. of insurance shown in rhe sublimir.s of Clause 2.b. I. Arson Reward Thjs policy is extended to cover payment of any reward offered on the Named Insured behalf for information that leads to conviction of tl1e perpetuator(s) of arson (fire) and vandalism r.o insmcd property that sustains physical. loss or damage insured by this policy. Th" Company's total liability for any one "occurrtnct" will not exceed the amount set r<:ll't.'1 in Clause 2.b. Regardless of the number of infonnant:s pwviding information that leads to a convict.1011, the Company's payment of t.1-i.is reward will not exceed the amount set forth in Clause 2.b. m. Back Up or Overflow of Sewer or Drains Coverage is extended for loss or damage that results from back up or c;vc:rflmv of sewers or sump pump wells or similar devices designed to prevem overflow seepage or leakage of subsurface water that occurs during r.he policy period. I:!owcv·cr, no coverage is extended for loss or damage that results from se,ver or sump overf!O\v resulting from "Flood". The Company will not pay more under tJiis extension t.'1an the applicable subli!Ylt stmed in thjs policy as set forth in Clause 2.b. n. Business Personal Property \Vhile Off Premises or In Transit The policy is extended to cover Business Personal Property while it is in ;J;e course of transit within th, Policy Tenit01y or at prer:nises that arc not desc1ibed in the Dedarations page. The limit ofEabi.lit:y for Business Personal Property W'hile Off- Premists or In Transit will not exceed $100,000 or the Business Personal Property Lirnir, whichever is rhe lesser amount. 7. PERILS EXCLUDED a. Tllis policy does not insure against loss or damage caused directly or indirectly by, to, or resuiting from any oft.be following. Loss or damage is exduded regardless of any cause or event whcrher or not insured under this policy t.hat contribur.cs concurrently or in .my- sec:ucnce to r.hc loss or damage. (1) Any fr:mdulent or dishonest act <,r acts cc,mmiuc:d by 1.hc Named Insured or :my of the Named .lnsun::d's emphyees me:rning only dishonc:sr or frauchd(:nt :-.cts comm.iacd by the Named Insured or tht Named lnsun:;d's ,.. mplovees with th: manifest intent to: (:t) c.1.usc the. N;uned lnsu.rc-c] to sustain such loss; ~nd Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 36 of 197 Property Policy (b) obtain financial benefit for the Named Insured, Named Insured's employee, or for any oLl--ier person or organization intended by the Named Insured or the employee to receive such benefit, other than saiaries, commissions, fees, bonuses, prnrnotions, awards, profit sharing pensic,ns, or other employee benefits earned in tht normal course of employmem; (2) Nuclear reaction, nuclear radiation, or radioactive conr.aminat:ion, all whether controlled or uncontrolled and whether such loss be ditect or indirect, proximate, or rtmote, or be in whole or in part caused by, contribnred to, or aggravated by the peril(s) insured against. in this policy except: (a) If fire ensues, liability is specifically assumed for direct loss by such ensuing fire but does not include any loss due to nuclear react.ion, nuclear radiation, or radioactive contamination; (b) The Company shall be liable for loss or damage caused by sudden and accidental Radioactive Contamination including resultant radiation damage for each ''occurrence" from material used or stored or from processes conducted on.insured premises prnvided at: the rime of loss there is neither a nuclear reactor capable of sustaining nuclear fission in a self-supporting chain reaction nor any new or used nuclec1r fuel on the insured premises; (3) (a) Any hostile or warli.1;:e action in time of ptace or war, including action in hindering, combating, or defending against an actual, impending or expected attack: (i) by any government: or sovereign power (de jure or de facto) or by any authority maintaining o.r using military, naval, or air forces; (ii) or by milirnry, naval or air forces; (iii) or by an agent of any such governrnenr. po\,\rer, authority or forces; (b) Any weapon employing atomic fission or fusion; (c) Any rebernon, revolution, civil w,1r, usurped power, or action taken by governmental authority 111 hindering, cornbating, or defending against such '' occu1-rence·~'; (d) .t\ny seizure or destruction by order of pubEc aur.hority, cxcepr. destruction by orcler of public authority, to prevt:nt tl1e sprtacl o( or t0 01:he1wise contain, control or minimize loss, damage or destruct.ion which occurs due to a peril insured against under this pol.icy; (e) J\ny risks c,f contnband or illeg:1! trade. (4) Named \Vindstorm, including hurricane and or tropical storm as designated by the National \'(feather Service, in "Tier l and 2 coumics", as furrher defined in this pc,licy. This Named \\/indstorm exclusion in '~fit:r l and 2 counties'' ,11s0 exciudes loss or damage· caused by Vi:1ter .in :tny :Jt.ate:-, or rain~ r,r sJc:c:r, or sno\v. or h:1il, nr sand. dust. or ~uiy other substance, rnarc:rial or' object rhat. is carried, blown, driven or orhcrwise r.ranspnrr.ed by c,nto or into r.he property .insun:d in "Tis::r 1 and 2 counties'' as ,1 resnit of t.lk Named \\?incbturrn. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 37 of 197 Property Policy (5) "Flood", as defined herein or spray resulting from "Flood", whet.her driven by ,vind or not, mudslide or mud-flow; water on or below Lhe surface of the ground inciuding that which exerts pressure on or flows, seeps or leaks through sidewalks, driveways, foundations, walls, basements or other tloors, or du:ough doors, windmvs or od1er openings in such sidewalks, driveways, found:1tions, walls or floors. However, this exclusion shall not apply to loss or damage caused by ensuing fire, theft or explosion nor. otherwise excluded by the policy. (6) "Earth Movement" including ioss or damage caused by, resulting from, contribut b. This policy does not insure against loss or damage caused by the following: (1) Faulty, inadequate or defective design, pLmning, development, surveying, s1tmg, specifications; faulty materials, faulty workmanship or mai.nknance; unless an insured loss ensues during the policr period as set fonh in r.be Declarations page and d1en t.bis policy sbal.l cover for such ensuing loss or damage; (2) Electrical i.'ljmy or disturbance to electrical appliances, dnices, or ,v:irbg caused by electrical currents adficial.ly generated; unless fire or explosion ensues and tben this policy shall only cover for such ensuing loss or damage occurring during the policy period as set fotth in the Declarations page; (3) Mechanical breakdown occurring during the policy period as set: fcmh in r.he Declarations page; (4) Explosion, rupture, or bursting of steam boilers, steam pipes, steam turbines, or steam engines owned or operated by the Named Insured; unless an insured loss ensuts during the policy period as set forth in the Dedaratic,ns page and r.hen r.his policy shall only covet for such ensuing loss of damage. The Company v,ill also pay fr>r loss or damage during the policy period as set forth in the Declarations page caused by or resulting from the explosion of gases or fuel wi1llin T11e furnace of any fired vessel or within tbe flues or passages through which t¾e gases of combustion pass; (5) Loss or damage caused by or resulting from vermin, bats, .insects (including but not. Emir.ed to termites and bed bugs), inherent vice, latent defect, contamination, rust, dampness or dryness of the atmosph,,re, smog, extremes of temperature, wear and tear, curnulative effects of smoke, vapor, liguid, dust or gradual deterioration; unless an insured loss ensues during die policy period as ser. forth in r.be Dccbrar.ions page and then this policy shall only cover for such ensuing Joss or damage; (6) Senl.ing or shrinkage of waHs, floors or ceilings; unless an insured loss ensues during r.he policy period as set forth in the Declarations page and then t.his policy shall only cover for such ensuing Joss or dan1:1ge; (7) Loss of market; damage or deterioration occurring during the policy period as set forth in the ,/ Declarations page arising from any delay; (8) Unexplained loss, mysterious disappearance, cw loss or shortage disclosed on taking inventory, volumary p:trting wir.h ritlc or pc,ssessic,n c,f property; misappropriation; conversion occurring during the pnlicv period .1s set frll1h in r.he Dcclarntions page; Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 38 of 197 FALLS LAKE INSURANCE COMPANIES Property Policy Rain, snow, ice or sleet occun:ing during tbe policy period as set forth in t.he Declarations page to person:tl property in 1J1e open; (1()). Continuous or repeated seepage or leakage of water, or the presence or condensation of humidity, moisture or vapor, that occurs over a period of 14 days or_more; (l 1) \\'.iater, other liquids, powder or molten material that leaks or flows from plumbing, heating, air conditioning or ocher equipment (except fire prmectin, systems) caused by or resulting frorn freezing, unless: (a) A diligent effort is made to regularly maintain hear in the "building" or structure; or, \'b) , 111e equipment is drained and the supply shut off; (12) Terrorism, including action taken to prevent, defend against, respond to or retaliate against tenorism or suspected terrorism. Terrorism is defined ,is any act, involving the use ot threat of force, violence, dangerous conduct, interference wit.h the operations of any business, government or other institution, or any similar act, when the effect or apparent purpose is: to influence or instill fear in any government (de jure or de facto) or the public, or any segment of either; or to forther or to express support for, or opposition to, any political, religious, social, ideologirnl or similar type of objective or posi1km;. (13) Loss or damage mused by or resulting from human and/ or animal remains at, in or surrounding the insured location as identified in d1e Declarations Page by ir.s "Property Identification Number". Any such loss or damage resulting from human and/or animal remains are specifically excluded from any Pollution Cleanup or Debris Remlwal limits. Such loss or damage is who.lly excluded even if the human and/ or animal remains are the result of a covered loss. Nevertheless, if fire is not excluded by this policy and a fire arises directly or indirectly from human or animal remains, any loss or damage insured under this policy arising directly from that fire is insured, subject to the provisions of r.his policy. c. This policy does not cover loss or damage mused by, resulting from, contributed tO or m.ade worse by actual, alleged or threatened release, discha1ge, escape or dispersal, seepage or migration of "contrrminants or pollutmts" all whether direcr. or indirect, proximar.e or t;emote or in whole or in part caused by, contributed to or a~>1:avated by any physical darnage insured by this policy. Nevenl1dc:ss, if fire is not excluded by tllis policy and a fire '.1rises directly or indirectly from seepage or contamination or pollution, any loss or damage insured under this policy arising directly frorn that fire is insured, subject. r.o tl1e provisions of tl1is policy. 'Hus exclusion ,vill nor apply when loss or dam:1ge is caused directly by t.he following specified causes of loss: fire, lightning, aircraft impact, explosiCln, ri(,t, civiJ commorion, smoke, vehicle impact, windstorm, hail, vandalism or malicious mischief. 'J'his c:xdusion sh,,ll also not apply when loss or damage is caused directly by leakage or accidental discharge from amomaric fire protective systems. cl. 'lbs policy do,s not cover: (I) J\sbestos, dioxin or polychlorinared bi phenyl 0,tTeinafter referred to as ".Materials') remuval from any gof,d, producr. or sr.ructurc unkss r.he asbe~r.os is itsc:lf d,un,1ged by fire, lightning, aircrnft impact, expiosion, riot, civil commotion, sn1c.ikc, vehick impart, windstorm or h;iJ, vnndalism, malicious mischief, k:1kage or accidental disch:1rge from ,1momar.ic fire protective systL.. tns.; Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 39 of 197 Property Policy (2) Demolitfr;n or increased cost. of reconstructkm, repair, debris removal or loss of use necessitated by ti,e enforcement of any law or ordinance regulati'!g such Material$; (3) Any governmental direction or request declaring that such J\faterials present in or part of or utilized on any undamaged portion of the Named Insured's property rnn no longer be used for the purpose for which it. was intended or installed and must. be removed or modified. The exception to exclusion 7 d. (1) above does not apply to payment for the investigation 01: defense of any loss, damage or any undamaged portion of Ll-ie Named Insurtd's property that can no longer be used for t..1-ie purpose for which it was intended. ~- The Company ·will not pay the expense to: (1) Extract "contaminants or pollutants" from debris; or (2) Extract "contaminants or pollutants" from land or water; or (3) Remove, restore or replace contaminated or polluted land or water; or (4) Remove or transport any propcrr.y or debris to a site for storc1gc or decontamination reqni.ted because the property or debris is affected by pollutants or conta1r>inants, whether or not such removal, transport, or decomaminat.ion is required by law or regulation. It. is a condition precedent to recc,very under this extension r.bat the Company shall have _paid or agreed to pay for clirect physical.loss or damage to the property insured hereunder and that the Named Insured shall give ,v1itten notice to the Company of irs intent to claim for the cost of removal of debris or cost of clean-up not later than twelve months after the date of such loss or dam:1ge. f. Notwithstanding any of the provisions of this policy, the Company shall not be liable for loss, damage, costs, expenses, fines or penalties incuned or sustained by or imposed on the Named Insured at the order of any government. agency, court: or other authority arising from any cause what.soever. g. This policy does not cover unless otherwise pmvided in Clause "12: (1) Loss or damage caused directly or indirectly by mold or other fungi, wet or dry rot, or bacteria; (2) The costs associated with the enforcement of ,1ny ordinance or law which ret1uires the Narned Insured or others to test for, monitor, dean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or assess the effects of mold or other fungi, wtt or dry rot, or bacteria; (3) .Any costs, expenses, fines or penalties incurred or sustained by or .imposed on the Named Insured at the order of any government agency, court or other authority arising from any cause ,vhar.soev·e.r. This mold or o:htr fungi, wet or dry rm, or bacteria exclusion applies whether or not the loss event results in \v.idesprcad damage or affects a subsr.anri1l arc,a. 11. Limit.at.ions This poiicv docs not insure loss or danrnge to: ("!) The .imcrior or" any '·building" or srrucr.urc crnsc:d by or resubng from rain, snow, sleet, ice, sand or dust, whether driven by wind or not, unless: Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 40 of 197 FALLS LAKE INSURANCE COMf?ANIES Property Policy (a) The "building" or structure firsi. sustains damage by a peril insured against. r.o its roof or walls through which the min, snow, sleet, ice, sand or dust enters; or (b) The loss or damage is caused by or results from thaw.ing of snow, sleet. or ice on the "building" or strucmre. 8. PROPERTY EXCLUDED This policy does not cover loss or damage to: a. .iYioney and securities. The term "securities" shall mean ali negotiable and non-negotiable insu:uments or conr.racts represenr.ing either money or other property, and includes revenue and od1er stamps in current use, tokens, and tickets but does not include money; b. Land, land values or water; However, this exclusion shal.1 not apply to the cost of restoring or r~pairing landscaping as provided under the applicable sublimit in clause 2. b. of this policy; c. Growing crops, standing timber, and animals, birds or fish, furs, jewelry, or precious stones or metals; This exclusion does not apply to ornamental trees and shrubs, located on the Named Insured's premises subject to applicab.le sublimit in clause 2.b. of this policy; d. \'(iarercraft, aircraft, railroad rolling stock, spacecraft or motor vehicles licensed for highway use; Underground mines and mining property located bdow the surface of the ground; f. Real or Personal Property 0\'.11ed by or.hers unless in the care, custody, or control of r.he Named Insured. g. Bridges or mnnels used for vehicular traffic, reservoirs, dikccs, canals and dams; h. Docks, piers and \Vhrrrves which are not. a st.rncturnl pan of a "building"; Oil or gas wells, platforms, rigs, or strucn1res; lnr.angible property, including withom limitation, goodwill and intellcctu:1l property of any kind; k. (1) Fixmres, appliances, cabinets, countertops, floor coverings, ceiling coverings, wall coverings, insr.allat.ions, alterations and addir.ions t.hat. comprise p:u:t of a "building", when situated within portions of r.hc premises used exdusively by individual condominium unit owners. However, if the insured condominium a~sociation's Conditions, Covenants and Resr.ricr.ions require that. the insmed condominium association .insure said pwpen.y, r.hen said property will be insured under this policy for the interest of th:: Named lnsured condomi.rium association, but only for the original \'alue and (]Ua!ity d1at existed m the: formation of the condominium associ:1t.ion except. :1s othc·rwisc star.eel in rhc Declarntions Page; and (2) Person:,[ proptrr.y owned by individual u,ndominium unir owners. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 41 of 197 Property Policy 9. VALUATION At the time ofloss, the basis of adjustment udess otherwise endorsed htrein shall be as follows: a. Real and personal property not otherwise valued below, shall be vaiutd at the cost of repairing or replacing (whichever is the lesser amount), at the rime ofloss without deduction fi)r depreciation, with another building or personal property of comparable rnaterial and guality for the same use or occupancy. b. The following property, unless otherwise endorsed herein sbll be valued at the r.11ne ofloss as follows: (1) Property of others - the amount for which the Insured is legally Jiab.lc, but not exceeding replacement cost; Unrepairable electrical and rnechanical equipment, including "electronic data processing eqnipmem", the cost to replace ""\\'1th equipment that is functionally equivalent to that damaged; Trees, shrubs, plams and lawns will be limited to standard local nursery stock; (4) "Fine .Arts" shall be valued at the .lesser of: (a) The cost to repair or restore the artide t0 the condition that existed immediattly prior t0 the loss; (b) 'lbe cost to replace the articl<':; or, (c) The value designated for the article on the schedule of "Fine .Ans" on file with the Company; (5) Valuable Papers and Records will be valued at 1.he cost. to replace or restore the lost: information on valuable paptrs and records for which duplicates do not exist. T11e Con1pany will also pay for the cost of blank materi:d for reproducing rc,cords (whether or not duplicar.es exist), and (when there is a duplicate) for the cost of labor m transcribe or c.opy the records. (6) \\?ith respect to "bL,iklings" which ate declared by a local state or federal aut.horityto be of historical significance or of historical value, such r<':building, repairing or replacernent shall be wit..l-1 material, workmanship, processes, technologies and designs publicly available within the cuncnt marketplace :md slrnll not include the cost c,f crenting om.dated, :11:chaic or antic1uated materials, workmanship, processes, technologies or designs; (7) Tenant's Improvements and Bett.erments: (a) If repaired or repiactd at the expense of the Named Insured within a reasonable time after .loss, the rcpbcement cost of r.hc damaged or destroyed improvements and betterments; (b) ff not repaired or replaced at r.he exix,nse of the Named l.nsurcd wir.hin a reasonabk rime after loss, the proportion of the origin,\] cost ,,t the time of insraiiation of the damaged or destroyed property \Vhich the unexpired tnm of rl1e lease or n::mal :1greemcnr. in effect ar r.he time of ioss bears r.o r.hc period from the dares suL'h improvements or betterments were made ro 1 he expinti,·,n d:ue of the .lease: c,r, Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20• Page 42 of 197 Property Policy (c) If repaired or replaced or to be rep,1ired or replaced at the expense of others for r.he use of fr1e Named Insured, there shall be no liability hereunder. c. The Named Insured may: (1) Voluntarily elect to rebuild at another site provided that such rebuilding does not increase the amount of loss or damage which would otherwise be payable to rebuild at the present she; (2) · Submit a claim based on r:he "Acr.ual Cash Value" of the property lost or damaged until the actual repair, purchase or replacement: has been completed. The Named Insured-may still claim t}1e additional coverage wl1ich replacement cost provides if notification of btention to do so is received by the Company v:ithin 18() days after the loss or damage. d. Replacement cost is subject to all the terms, conditions and limitations of the policy (including any endorsements) and the: following additional provisions: (1) The Named Insured must execute repairs or replacement "''ith due diligence and dispatch; The Company ,vill not pay on a replactment cost basis until the lost or damaged property is actually repaired or replaced. (3) The Company will not pay more on a replactment cost basis than the least of (a) The cost to replace, on the same site, rl1e loss to damaged property ,,~th other property of comparable material and t1uality which is used for the same purpose; or (b) The Amount acmally spent by the Named Insured L~at is necessary to repair or replace rhe lost or damaged property. e. The Cornpany wm only pay t:..he Nan1ecl 1nsured based on a "fin.ancial interest" or contractuai liability in tl1e insured prope1ty at the time of loss. f. If the Named Insured-fails to comply ,v.ith any of the valuation provisions or does not repair or replace the property within two (2) years from the date of loss, the basis of the valuation will revert to the "Actual Cash Value". "Actual Cash Value" is defined as the replacement cost of the propeny at tbe time and place of the loss or damag~ with proper deduction for depreciation. 10. FIRE BRIGADE CHARGES AND EXTINGUISHING EXPENSES This po.I.icy is extended to cover expenses incurred by the Named 'Insured to replace fire extinguishing mar.er.ials r.hat. ate lost, expended or destroyed to r.he extern of the value of such fire extinguishing materials; and for firefighting expenses incur.red by or imposed on the Named Insured in connection with covered loss or damage to covered property. fiowever, there will be no coverage for charges incurred for false alarm. The limit of liability will not exceed t.he applicable limit of insurance shown in the sublimits ofCiause 2.b. 11. POLLUTION CLEAL'-JUP AND REMOVAL COSTS Not,vithsr.rnding the provisic,ns of Clause 7.c. or any pn:,vision respecr.ing seqngc and/or poi.lution and/or comarn..ination, and/or debris n,rnoval and/ or cost of cleanup, in the event of direct phy$ic:al loss or damage ro the propeny insured hereunde,· that is directly caused by or results from one or more of tht folhwing cansccs that occurs during the policy period as set forrh in the DccL1r.11ions pagt: Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 43 of 197 Propexty Policy □ Fire; l] Lighr.nin.g; [l Explosion; 0 \Xiindstorm; 0 Hail; 0 Smoke; [J Vehides; 0 Aircraft; lJ Civil disturbance; D Riot; [l Sprinkler Leakage; l] Leakage from fire extinguishing equipment; l] \'CT eight of snow, ice or sleet; [l "\v'ater Damage" except as otherwise excluded in t.lus Policy. This policy (subject otherwise to its terms, conditions and limitations, including but not limited to any applicable deductible) also insures: a. expenses reasonably incurred in removal of debris of the property insured hereunder desn:oyed or damaged from the location of the loss; andi or, b. cost of cleanup, at the location oft.he loss, made necessary as a result of such direct physical loss or damage; and/or, c. cost of pollution cleanup; not to exceed the policy sub-limit specified in Clause 2.b. It is a condition precedent to recovery that the Company shall have paid or agreed to pay for direct physical loss or damage r.o the property insured hereunder unless such paymcm is prcciuded solely by the operation of :my deductible and that the Named bsured shall give notice to the Company of inttm to claim for cost of removal of debris or cost of cleanup NO LATER THA1'-J 12 MONTHS AFTER THE DATE OF SUCH PHYSICAL LOSS OR DA.lvIAGE. 12. LIMITED COVER.AGE FOR "MOLD", "FUNGI", WET OR DRY ROT OR "BA€TERIA" This policy is extended tO cover, subject to a maximum limit of $10,000 per "occurrence" per insured locar.ion, "loss or damage·'' directly caused by or resulting from "mold" or "fungi'', wet or dry rot, or "bacteria" if such "mold" or "fungi", wet. or dry rot, or "bacteria'" is directly caused by or results from one or more of the following causes that occurs during the policy period: [] Fire; 0 Lightning; 0 Explosion; [J Windstorm; [J flail; n Smoke; I] Vehicles; [; 1\ircra ft; 0 Cid disturbance; i] Riot; D Spl'.inkltr Le.1kage; r:: Lcakage from fire extinguishing equipment; [. \Xi eight of snow. ice or sleet; r:~ "\Xiatet Danrnge" except. as orhcrwise excluded in this Pol.icv. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20• Page 44 of 197 Prope:rty Policy The maximum total limit provided by this coverage extension is $10,000 per "occurrence" per locat.ion regardless of fr1e number or type of ccwerages that rnay apply, the number oflocations to which this coverage extension applies, or regardless of the number or type of mold or other fungi, we: or dry rot, or bacteria that caused the loss or damage. \'vhen this agreement. and any other insuring agreement or endorsement written by the Company applies to the same moid or other fungi, wet or dry rot, or bacteria loss, $10,000 per "occurrence" per location is the most the Company will C\"er pay on a combined tot.al basis for all such .loss, irrespective of any limit that rnigbt apply to the underlying cause of the mold or other fungi. wet 01: dry rot or bacteria loss, if any. This amount is not in addition to the limits of coverage r<)r real or personal property or time element coverage as specified elsewhere in this policy and is inclusive of all testing, analysis, remediation and reconstruct.ion. Definitions applicable to this section ''J\Iold" or ''fungi" 1neans: any type or form of mold or mildew; any mher type or forn1 of fongus; or any mycotox.in, spore, scent or byproduct that. is produced or released by such mold, mildew, or or:her fungus. "Bacteria" means: any type or forrn of bacterium; or any by-product that is produced or released by such bacterium. ".L.oss or da111age" n1eans: Direct physical loss or damages to covered property by "mold", "fungus", ~Yet or dry rot or "bacteria", including die cost of removal of die "mold", "fungus", wet or dry rot. or "bacteria"; The cost to tear out and replact any part of the "building'' or or}ier property as needed to gain access to the "1nc,ld", "fungus", wet or dry rot: or "bacteria"; and The cost of testing performed after removal, repair, replacement or restoration of the damaged property is completed, provided there is reason r.o believe that "mold", "fungus", wet or dry rot: or "bacteria" are present. 13. DEBRIS REMOVAL COSTS a. The Company ,vill pay the reasonable and necessa1y expense incurred by the Named Insured to remove debris of insured property from a .location remaining as t.be diteect result of loss or darnagc insured by this policy during t.he policy period. Such expenses 'Will be paid only if reported to the Company iri writing within 180 days of the date of clirect physical loss or damage:. b, For this Debris Removal covernge, r.he Company wili pay 25% of: (l) The amount t.he Cornp:my pays for the direct physical loss or dam:1ge to t.hc insured property; plus (2) The dednctible .in this policy applicable to r.hat direct phy,,ietl ·loss or damage. c. In no event will this Debris Removal Coverage apply to: (1) Costs to extract "contaminants or pollutants" from land or water; or (2) Cosrs r:o remove, restore or repl.Ke polluted .iand or war.er, The· limit of liability w.ill not exceed die applicable limit of insurance shGwn in rhe sublim.its of Clause 2,b, Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 45 of 197 Property Policy 14. BUILDING ORDINANCE, DEMOLITION AND INCREASED COST OF CONSTRUCTION a. fo r.he event of.loss or damage under this policy that causes the enforcement of :my law or ordinance reg11lating the construction, rtpair, or use of property the Company shall be liable for: Coverage A. The proportion t.hat t.he value of the undamaged part of the property bore to the value of the emire property prior r.o loss; CoverageB. TI1e cost of demolishing the unchrnaged prnperty; Coverage C. The increased cost of repair or reconsn:uction of the damaged and undamaged property on the same or another site and limited to T11e costs r.hat wodd have been incutred in order to comply with the m.iriimum requirem<::nts of such law or ordinance regulating r.he repair or rcconstmcticin of rJ1e damaged ptope1ty on the sarne site. However, the Company shall not be liable for any increased cost of construction loss unless the damaged property is actu:illy rebuilt or replaced; if the property is repaired or rebuilt. .it must be intended for similar occupancy as the cun:ent property, unless otherwise required by zoning or land use ordinance of law; CoverageD. Any increase in the business i.--1,erruption, Extra Expense, rental value and royalties loss arising out of the additional time required to comply with said law or ordinance. b. /1.dditional Conditions which apply to this extension: If the property is repaired or replaced, on t.he same or another premises, t.his policy will not pay more for loss or damage, including loss caused by enforcement of any lmv or ordinance, than the least of the folk>\vlng mnounts: (1) The amount ,1ernally spent to repair, rebuild, or reconstruct the "building", but not for more than the amount it would cost to restore the "building" on the same premises and to the same height, floor area, style and comparable cluality of the original property insured, assuming that such repairing, rebuilding or reconstructing is then perrnitted; or (2) The Lirnit of Liability contained within this policy; or (3) If a portion of the property is not repaired or replaced, due to ordinance or law restricting or prohibiting repair or replacement of the "bnildinf_(' to the same height, t1oor area of the original property insured, r.he amount actually spent to repair, relmikl, or reconstruct the "building" and the ".Actual C1sh ·value'', of the portion of the property that is not repaired or replaced. The limit of liability 1,/ill not exceed the applicable limit of insurance shown in the sublirnits of Clause 2.b. 15, EXPEDITING EXPENSE This policy cuvcrs the reasonable extra cost of remixirary repair and of expediting the rep,1ir of danuged property insured hereundtr, including overtime and express freight or other rapid means of transportation. 16. CONTRIBUTING INSURA.~CE Tr1is insur:mce shai.l be excess of :my or her contributing insurance. 17. EXCESS INSlJRANCE Excess .insurance is insurance over the iimir. r1f liability sc: forrh in r.his pc,licy. The e:-:istc:ncc of wch excess insur,rnce shall not prejudice the coverage provided under this policy nor wi.li it rd nee :,ny liability hereunder. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 46 of 197 Pxoperty Policy 18. lJNDERLYING INSlJRANCE Underlying insurance is insurance excess of all, or nny part of, the deductible and against all or :my of die perils covered by this policy including declarations of value to r.he carrier for hire. 1J1e existence of such underlying insurance sh:1ll not prejudice or affect any recovery othenvise payable under this policy. If the limits of such underlying insurance exceed the deducrjb!e amount which would apply in the event of loss under this policy, then that portion which exceeds such a deductible amount shall be considered ''other msurance.• II 19. OTHER INSUR.<\.NCE Except for insurance described by the excess insurance clause, by r.he underlying insurance clause, this policy shall not cover to the extent of any other insurance, whether prior or subsequent hereto in date, and whet.her directly or indirectly covering the same propeny against the same perils. The Company shall be liable for loss or damage only to extent of that amount in excess of the amount recoverable from such other insurance. 20. SlJBROGATION Any release from liability enttrecl into by t.he Named Insured prior to loss hereunder shall not affect tbs policy nor the right of the Named Insured to recover hereunder. Tbe right. of subrogation against. the N'.lmed Insured, and/or its affiliated, snbsidiaiy, and associated companies or corporations, or any other corporation or companies associated with the Named Insured through ownership or management, is waived. In tl1e event of any payment under this policy, the Company $hall be snbrogated to the extent of such payment to all L\i.e Named Insured's rights of recovery L\i.erefor. The Named Insured shall execme all papers required and shall do anything that may be necessa1y at the expense of L\i.e Company w secure such right. The Company will act. in concert with all other interests concerned, i.e., the Named Insured and any other company(ies) participarjng in the pavment of anv loss as prirnarv or excess insurers, in the exercise of such rights of recoverv. ff anv amount is recovC:·ed as a tes~lt of such proc~edings, the net :1moum recovered after cled;~t.ing r.he costs 'of reco~·ery sh~ll be divided between the interests concerned as if the amount of 1:ecove1y has been known prior to the loss. 1f there should not be recove1y, the expense of proceedings shall be borne proportionately by the interests instituting die proceedings. 21. SALVAGE AND RECOVERIES \¼'hen, in connection ·with any loss hereunder, any salvage or recovery is received subsequent to ,J1e payment of such loss, the loss shall be figured on d1t basis on ·which it would have been settled had tht amount of salvage or recovery been known at the time the loss was originally determined. Any amounts thus found to be due either party from r.he other shal.l be paid promptly. The expense of all proceedings necessary to such recoveries shall be apr)ortioned bet\veen the interests concerned in the ratio of rheir respective recoveries as finally settled. If there should be no recovery and proceedings are conducted solely by the Company, the expense thertof shall be borne by the Company. 22. BRA.i'-iD OR TRADE.MARK In c::ise of damage by a peril .insured against. m covered property bearing a brnnd or :rndemark or which in any \Vay Clrries or irnpiles the guarantee or rhc rcspnns11Jil.ity of the tnanufa.cr:urer r,r Nan1cd Insured. the snlvage vaiue uf such damaged property shall be determ.ined after n:rnoval at the Comp:iny's expen~e in the customary rnarn1c.r of all such brands or trademarks or orher idcmii\ing ch:lncr_cristics. Tht Named Insured shall have foll right to the· possession of aii gr,ods involved in ,1ny loss under rhis policy and shall l'C'.tain comrol of all damaged goods. The .lnsurcd, cxc-rcising :1 reasonable discr<:tion, shall be the sole judge Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 47 of 197 P:rope:rty Policy as to whethet the goods involved in any loss under this policy are fir. for consumption. No goods so deemed by the Insured to be unfa for consurnption shall be sold or other\vise disposed of except by the Named Insured or with the Narned Insured 's consent, but the Named Insured shall allow the Company any salvage obtained by r.he Named Insured on any sale or other disposition of such goods. 23. MACHINERY ln case of loss ot damage by a peril insured against to any pan of a machine or unit. consisting of t,vo or more parts when complete for use, the liability oft.he Company shall be limited to the value of the part or parts lost or damaged, or at the Insured' s option to the cost and expense of replacir1g or duplicating r.l-ie lost or damaged part or parts or of repairing the machine or unit. 24. PARTLi\L PAYMENT OF LOSS In the event of a loss covered by this policy, it is understood and agreed that the Company may allow a partial payment(s) of clai.rn subject to the policy provisions and normal Company adjustment process. 25. PROFESSIONAL FEES a. This policy is extended to cover reasonable claims adrni..'listtation and loss data preparation fees and expenses to: Auditoi:s, Accountants, Architects, I:~ng.1neets, Construction consultants, for producing and certifying particulars or details of the Named Jcsurcd's business in order to determine the amount of ioss. Expenses must be incurred by the Named Insured in order to establish the amount of r.he loss. b. TI1e Company will not be liable for fees or expenses to: atr.orneys; public adjusters; appraisers or tl1c Named lnsured's own employees or agents. c. 11,e limir.ofliability will not exceed r.hc applicable Emit of.insurance shown in the sublimirs of Clause 2.b. 26. .APPRAISAL ff the Named Insured and the Company fail to agree on th;; amount of loss, each, upon the writr.en demand cir.her of r.he Named Insured or of tbe Cc,mpany made within 6(1 days afr.er receipt of proof of loss by r.he Company, shall sele<;t a competent ,md disinterested appraiser. TI1e apprnisers shall then select a competent and disinterested umpire. ff they should fail for 15 days to agree upon snch umpire:, then npon the: request of the Named Tnsuted or of the Company. such umpire shall be se.lecfrd by a judge c,f a court of record in the county and state in which such appraisal is pending. TI1en, at a re'.lsonable time and piace, rbe appraisers shail appraise the loss, staring separately the value at the time of loss and t.he amount of loss. If the appraisers fail to agree, they sh,tll submit r.heir.diffcrc:ncc:s r.o r.he umpire:. 1\n award in writing by any rwo shall detern1ine the amount. c,f ioss. The Named Insured and the Company shall each pay his or its chosen appraiser ,md shall bear,equ,1Uy the other expenses of the ,ipprnisal and of the umpire. If there is an apprnisai, the Company wil.l still ret;1.in its right to deny the claim. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 48 of 197 P:rope:dy Policy 27. PAIR A.1'-.JD SET Except. as provided under CLmse 23, in the event of loss or damage by a peril insured against to any article or arr.ides which are pan of a pair or set, frie measure of loss or damage to such article or articles shall be, at t.he lnsnred's option: a. The reasonable and fair proportion of the total value of tht pair or stet, givi.-ig consideration to the import.met of said article or a1ticles, but in no event shall such loss or damage be construed to mean total loss of the pair or set; or b. The foll value of the pair or set provided that die Insured smrenders the remaining article or articles of the pair or set: r:o tl1e Company. 28. ASSISTANCE AND COOPERATION OF THE NAMED INSURED The Named Insured shall cooperate w:ith the Company and, upon the Company's request and expense, shall attend hearings and trials and shall assist: in effecting settlement, in securing and giving evidence, in obtaining the attendance of ,,~messes, and in conducting suit.s. 29. PRESERVATION' OF PROPERTY In case of actual or imminent physical loss or damage of the type insured against by th.is Policy, t.he expenses incurred by t.he Named Insured in taking reasonable and necessary act.ions for the temporary protection and preservation of property insured hereunder shali. be added to the total physical .loss or damage otherwise recoverable under this Policy and be subject t0 the applicable deductible and without increase in the limits of liability contained in t.1-i.is Policy. 30. MORTGAGE CLAUSE Loss, if any. under this policy, shall be payable to the mortgagee(s) (or Trnstee) of a Named Insured as may be nap1ed in the Declarations Page as issued to a N,1med Insured as interest may appear under all present or foh1re mortgages upon the property herein described .in which the :iforesaid m:iy have an interest. as mortgagee (or trustee), in order of precedence of said morr.gagcs, and this insurance, as to the interest. of r.he mcmgagee (or trustee) only diere.i.n, shall not be invalidated by any act or neglect of the mortgagor or owner of the within described property, nor by any foreclosure or other proceedings or notice of sak relating to the property not by any change in the title or ownership of the property, not by the occupation of die premises for purposes more hazardous than are permitted by this policy; provided, that in case the mortgagor or owner shall neglect to pay any premium due under this policy, tht mortgagee (or trustee) shall, on demand, pay the same. Provided, also, that the n101tgagee (or trustee) shall notify the Company of any change of O\vnership or occupancy or increase of hazard which shall come to the know.ledge or said mortgagee (or trusree) and, unless permitred by th.is policy, it shall be noted thereon and t.he mortgagee (or trustee) sLtll, on demand, pay the premium for such increased hazard for the term of the use thereof; otherwise this policy shall bt null and void. 'fhe Company rtserves the right to cancel this policy at any tirne as provided by its terms, bm in such rnse this policy shall continue in force for the bendit only of the rnoitgagee (or rrnstee) for ---thirty d;1ys after notice to the mortgagee (or trustee) of such cancellation and shaU then cease, and r.he Company sha.1.1 have the right, on like notice, to cancel this agreement. \Vhencver the Company shall pay the mortgagee (or trustee) any sum for loss under r.his poliC\, and shall cbirn th:u, as ,.fl the mortgagor or mvner, no liability r.herdi.}re e;;isted, the C,,mpany· sh:11l, ro t.he exr.cm of such 1x1vnic-m, be thereupon kgally subrogattd to ail rJ1e rights of the p,1rt::,c w whom such pavmenrs shaH be made, under :ill secnritics held as collateral tD the n1ongage dcbr.. or rn~1y, ar. its c,pr1on. pay rhe 1norrgagec (or tru5tcc) rhc \Vhc,le principal due or to grow due on :he mortgage with interest, :u1d shall thereupon receive a full Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 49 of 197 Property Policy assignmenr. and trnnsfr:r of the mortgage and of all such other securities; but no subrogation shall impair the right of the mortgagee (or trustee) to recover the full amount of said mortgagee's-(or trnstee's) claim. 31. PAYMENT OF LOSS J\ll adjusred claims shall be due and payable not later than 30 days aft.er present.at.ion and acceptance of proofs of loss by the Company or its appointed representative. 32. EVIDENCES OR CERTIFICATES OF INSURANCE Any Evidence of Commercial Property Insurance issued by CIBA Insurance Services on behalf of tht Company in connection v::ith this policy shall be issued solely as a matter of convocnitnct or information for the addressee(s) or holder(s) of said Evidence of Commercial Property Insurance, except where any Additional Insrn:ed(s) or Loss Payee(s) are named pursuant to the Special Provisions of said Evidenct of Commercial Property Insurance. In the event any Additional Insured(s) or Loss Payee(s) are so named, this policy shall be deemtd to have been endorsed :1ccorclingly, subject to all other terms, conditions and exclusions stated herein. 33. CANCELLATION a. Individual Nmntd Insured locations covered under this policy may be cancelled at any time at the reguest. of CIBA Insurance Services by mailing r.o the Named Insured at the ,1ddrcss shown in the Declarations page issued for the Named Insured location as identified by its "Property ldentifirntion Number" written notice stating not less than thirty (30) days t.>i.ere:1fter such cancellation shall be effective. In the event of non-payment of premium, the number of days is amended to read ten (10) cbys. b. The mail.L"l.g of notice as aforesaid shall be sufficient proof of notice and t..1-ie effectivt d:ite :md hour of cancellation st:1ted in the notice shall become the end of the policy period. Delivery of such written notice either by CIBA Insurance Services or by the Company shrJl be tquivaiem to mailing. c. If tlit cancellation is reguested by CIBA Insurance Services, or if the insured property is sold by the Named Insured, the remrn premium ,,~ll be calculated pro rata rneaning the unearned premium ,vill be returned. d. If the cancellation is re,1uested by the Named Insurtd for any other reason than the insured property being sold, then tht premium will be rnlculated short rate, meaning d1at 90';,;, of the unearned prernium will be returned. 34. JOINT LOSS AGREEMENT It is agreed that in the evtnt the Nmned Insured suffers a loss at a location designated in both a Boiler and .\Jachinery policy and r.his Policy, and there is disas,reement between d1e Boiler and \fachinery Insurer and r.he Company hereunder with respect. to: a. Whet.her the loss was caused by :1n accident insured against by t.he Boiler and Machinery policy or by a peril insured ag~unst by this Policy, or b. The extent of participation of the Boiler and Machinery policy and this Policy in a loss which may be insured :1gainst, parti,1ily or whol.iy, by cir.her c,r both of s:1id policies, thtn :lfrer ,1grc:emcm between t.he Named Insurc·d , the Boiler Insurer, ,md the Company hereunder ,1s m the rorni :1moum of the loss rc·con:rable under the policies, each insurer wiU, upon written request of the N,1med Insured pay to t.hc Nnmed lnsurc:d one-half (I /2) of the arnoum c,f lo:;s which is in di:;ngTccment bm no more r.han Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 50 of 197 P:ropedy Policy r.he Company would have paid had d1ere been no Boiler and 1\fachinery policy in effect at the time of the ~'occurrence". The payment by the Company hereunder and acceptance of the same by the Named Insur~d signify the agreement of the Company to submit to and proceed wiL\.i arbitration ,vithin rinety (90) days of such paymtnts. The Arbitrators will be three in number, one of whom shal.l be appointed by r.he Company hereunder, and the third appointed by consent of the other r.,vo. The decision by the arbirsators shall be binding on the insurer. The Named Insured agrees to cooperate in furnishing infonnation and technical data as may be required by die Comp,rny .in connection with such arbitration or :my or.her method of apportionment upon which they may decide, but not to inttrvene Neither this ngreemtm nor Ll-:ie payment or acceptance of any amounts hereunder shall operate to modify or waive the tem1s and conditions of the Boiler and ::Vfachinery policy or dlis Policy, or affect in :my way the rights of the parties there under. This agreernent shall become effective at Inception and shall continue in force until canceled by either insurer on lJO days ,vritten notice t:o the Insured or until the termination of one or all of die policies specified herein, \vhichever occurs first. The prc,visions of this Agreement shall not apply unless such or.her policy issued by the Boiler and 1\fachinery Insurers is sirnilarly endorsed. 35. PRIORITY OF PAYMENTS CLAUSE In the event. of a daim under this policy, and any underlying policy(ics), which involves more than one interest andi or coverage and/ or peril, it shaU be at r.he sole opt.ion of the Named .Insured to apportion recovery under th_is policy when submitting final proof ofloss. Subject to the overall amount of claims not exceecling the overall limit of liability contained herein for any one loss. 36. ASSIGNMENT Assignment or transfer of this policy shall not be valid except wit.h rhe writ.ten consent. of the Company. 37. SUIT AGAINST COMPANY No suit, action or proceeding for r.al-ie recovery of any claim under tl,js policy shall be susrninable in any court of law or eciuir.y unless rhe Named Insured shall have folly complied with :lll the n:yuirements of this policy, nor unless the same be commenced widlin twdve (12) months next '.!ft.er inception of the loss provided, however, that if under the laws of the jurisdiction in which the property is located such limitation is in.v;Llid, then any such claims shall be void unless such action, suit or proceedings be commenced within the shortest limit of time permitted by the laws of such jurisdiction. 38. "VACANT" AND UNOCCUPIED "BUILDINGS" If the "building'' ,vhere t.l-ie loss occurs.has been "vacant'' for more than 90 consecutive days before the loss or dnmnge c,ccurs, the Compm1y will not. pay for loss or damage caused by ;my of the following: :1. \X1ater da1nage fron1 any cause; b. Vandalism; C. ·'Building'' GL\ss Breakage; d. Theft; or ;\ttempted Thefr. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 51 of 197 Pxope:dy Policy 39. CONCEALl\-1ENT, MISREPRESENTATION OR FRAUD Th.is policy is void in any case of fraud by the Named Insured as it rdated to this policy at any time. It is also void if the Named Insured or any other insured, at: any time, int.entjonally conceals or misrepresents a material fact concerning: a. This policy; . b. Property insured under Lliis policy; c. The Named Insured or any other .insured's interest in tl1e property insured under this policy; or d. A claim made under this policy. 40. DUTIES OF THE NA'vIED h°'SURED IN THE EVENT OF LOSS OR DA.l.\tlAGE It is a condition precedent to any payment ofloss that the Named Insured must see that the following are done in the event of loss or damage to insured property as soon as possible: a. Notify the police if a law may have been btoken. b. Cive the Company irnmediate notice of loss or damage including a ckscription of the property involved. c. Give the Company a des,xiption of how, when and where the loss or damage occurred. d. Take all reasonable steps t.o protect insured property from further damage by a peril insured against. If feasible, set tl1e damaged property aside and in tl1e best possible order for examination. Also, the Named Insured shall keep a record of expenses for ernergency and temporary repair, for consideration in the sett.lement of tlie claim. .Any rt:cord of expenses will not. mcreasc tl,e applicable limit of 1nsurance. At the Company's request, give fr1e Company corn.plete invemories of the damaged and undamaged properry. Include quantities, costs, values and :imount of loss claimed. f. Permit. rl1e Company to inspect. the property and records proving the loss or damage. Also perm.it the Company to take samples of damaged property for inspection, resting and analysis. g. Cooperate with tl1e Company and .its retained adjustors and experr.s in the investigation of the claim by providing re(1uested documents and information as soon as possible. h. If requesr.ed, both the Named Insured :ind ,my of its employees submit undc,· oath, ro questioning, at such times as may be reasonably required abc,ut. any matter relating to this .insurance or the Named Insured's claim, including the Namtcl Insurecl's books and records. In such event, the. N,1med lnsured's and employees' answers must be signed. i. Send the Company a signed, sworn statement of loss containing the informatic,n requested by the Comp,my to investigate the dnim. The Nan1ed :Insured must do tl1is within 60 ,hys of tile C:omp;my's request. The Company ,vil.l supply the Named Insured with the necessary forms. 41. CONFORMITY TO STATUTE Ttrms of :his poiicy in conflict ,vith the written hws of tht state in which the policy is issued are changed to conform m such laws. 42. TITLES OF PARAGRAPHS Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 52 of 197 Property Policy 43. DEFINITIONS The following ttrms, whtnever used in tbs policy, are defined as follows: a. " ,·.·\ ccount Id ent1hc::rron. ~ . 1N· ·um b er " V'-' 'IN.,,1 J The comrnct number assigned r.o an individual lnsuted Member covering their schedule of locations insured hereunder. The AIN is issued by CIBA under the authority of the various Insurers, as listed in Appendix BP, and is subject to all terms and conditions of such Insurers' policies, to the extent: specifically stated for the individual. contract number issued ro the Insured Member. b. "Actual Cash Value" The cost to repair or replace t11e damaged property, in.inns depreciation of materials and applicable labor. c. "Building" or "Buildings" .!.\ building at the ''described pre1nises". d. "Contaminants or Polli1tants" 1\ny solid, liquid, gaseous or thermal irritant or conmminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste, which after its release can cause or threaten damage to human health or human welfare or causes or threatens damage, deterioration, loss of value, marketability or loss of use to property ins1ired hereunder, including but not limited to bacteria, virus, or hazardous substances as iisted in the Federal \'vat.er, Pollution Control Act, Clean Air Act, Resource Conservation and Recove1y Act of 1976, and Toxic Substances Control i\ct or as designated by the U. S. Environmental Protecrfon Agency. \vaste includes m:uerials to be recycled, recondirioned or reclaimed. "Described Premises" The Named Insurecl's property location that is stared in the Property Progrnrn Schedule of Locations in Dedarations Page issued to the Named Insured .Member by CIBA Insurance Services. f. "Earth J'VIovement" Movement of the earth, including loss or damage caused by, resulting from, contributed m, or aggravated by any natural or rnanmade "eaith n10vemenr", including bm not limited to earthquake, landslide, mud flow, volcanic eruption, earth sinking, subs.idence, c:u::.h rising, or e::irth shifting. g. ''Electronic Data Processing Et1uipment" "Ela:ctron.ic Data Processing Et1uipmenr'' shall include, bur not bt> l.imittd to, transferring equipment, computer systems, telecomnrnpjcarions systems or electronic comrol ec;uipment and co1nponcnt pans. h. ''Electronic Darn Processing 1\.kdia" All forms of d.na, convened cbr.a, ek:ctronic.11.ly convened dau and/or progr.1ms :rnd/c,r appiications :incl/ur instructions ::ind/or media w,hicies employed. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 53 of 197 FALLS LAKE iNSORANCE COMPANIES Prope:rty Policy J. "Financial Interest'' As used herein is intended to include ti1e following: (1) The Named Insured's equity in the insured location as identified by its "Property Identification Number"; (2) The value of the insured's loan up to and including the policy limits; or, (3) Registered legal ownership in rJ1e insured location. "Fine· ll.rts" shall include, but not be limited to, bona fide works of art, works of rarity, historical value or artistic merit, photograph, (positives and negatives) lithographs, illustrations, galley proofs, original records, and similar properties. k. "Fire Brigade Charges/Fire Extinguishing Expenses" Firefighting and/ or containment charges and/or fire department service charges and other extinguishing expenses for which the Insured is assessed . .I. "Flood" A general and temporary condition of partial or complete inundation of normally dry land areas from: (1) The unusual and rapid accumulation or runoff of surface waters from :my source; (2) The overtlO\v of inland or tidal waters; or (3) \>:.'aves, tides or tidal waves. rn. "Occurrence·'' The term "occurrence" shall mean any one loss. disaster, casualty, or series of losses, disasters, or casualties, arising out of one event. \\'.ihen the term applies to loss 01: k,sses from r.he perils of tornado, cyclone, hurricane, windstorm, hail, riot, riot attending a strike. civil commotion. and vandalism one event shall be construed to be all losses arising during a continuous period of 72 hours. n. "Properr.y ldcntifieation Number" (PID) The tem1 "Property Identification Number" or PID shall mean the individual number assigned to the Named lnsured's property location that. is stated in r.h<: Decbrations Page issued to the Named Insured by CIBA Insnrnnct Services. o. "Tier ·1 and 2 Counties" The term '•"Ji::r 1 and 2 Coumi<::·s" include~ all listtcl countie~, parishes and citic:s in tht stmes bc.:Ic,w. \X1herc: the words "Entire State'' appear under the name of the st.ate, :lll counties, parishes and citic:s withi11 that state are Tier "l. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 54 of 197 .FALLS·LAKE INSURANCE COMPANIES Property Policy Alabama Tier l Counti(;S of Baldwin and i\-:lobile Connecticut Tier 1 Counties of Fairfield, Mitldl(;sex, New Haven and N(;w London Delaware Tier 1 County of Sussex Florida Tier l Entire Seate c;eorgia Tier 1 Counti(;S of Bryan, Camden, Chatham, Glynn, Liberty and Mdntosh Ti(;r2 Counties of Brantley, Charlton, Effingham, Long and \X1ayne Hawaii Ti(;r I En tire State Louisiana Ti(;r l Parishes of Assumption, Calcasieu, Carneron, Iberia, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, St. B(;rn:ml, St. Charles, Sr. Jam(;S, St. John the Baptist, St. 1vfartin (South), St.1'.vfary, St. Tammany, Tangipahoa, Terrebone and Vermilion Ti(;r 2 P:trishes of Acadia, Ascension, East Ihwn Rouge, Iberville, Jefferson Davis, L.afoyctre, St. M:11:tin (North), \Xiashington and \1?est Bar.on Rouge i\foine Tier J Counties of 1\ndroscoggin, Cmnb<:rland, 1-foncock, Knox, Lincoln, Sagadahoc, \X!aldo, \v'asbngton and York i\{arvland Tie1· l Crrnnties of Calvert, Charles, Dorchester, Somtrset, St. Mary's, Talbot, \\:.'icomico ,tnd \'(!orcester · i\Jassaciwsens Tier J Counties of Barnsrnble, Bristol, Dukes, Essex, Nanrncket, Norfolk, Plymouth and Suffolk . Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 55 of 197 FAULs:LA~E INSURANCE COMPANIES Property Policy 1\-Iississippi Tier ·1 Counties of Hancock, Harrison and Jackson Tier 2 Counties of George, Pearl River and Stone New Hampshire Tier 1 Counties of Rockingham and Strafford New Jersev Tier 1 Counties of Atlantic, Bergen, Cape .May, Cumberland, Essex, Hudson, J\1iddlesex, ]\fonmouth, Ocean and Union NtwYork Tier 1 O:mnties of Bronx, Kings, Nassau, New York, Queens, Richmond, Suffolk and \Vestchester North Carolina Tier 1 Counties of Beaufort, Bertie, Brunswick, Camden, Carteret, Chowan, Columbus, Craven, Currituck, Dare, Hyde,Jones, New H:movci:, Onslow, Pamlico, Pasquotank, Pender, Pen1uirnans, Tyrrell and \'{/ash.ington Tier 2 Corn1ties of Bladen, Duplin, Gares, Hertford, Jones, Lenoir, 1Vlarrin and Pin Rhode Island Tier 1 C:ounrjcs of Bristol, Kent, Newport, Providence nnd \Vnshington South Carolina Tier l Counties of Beaufort, Bci:keley, Charleston, Colleton, Dorchester, Georgetown, Hampton, Horry and Jasper South Carolina Tier2 Counties of Florence, :Marion and \Xiilliamsburg Texas Tier 1 Counties of 1\rnnsas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Harris, Jackson, _leff,Tson, Kennedy, Kleberg, Liberty, Matagorda, Newt.on, Nueces, Or:mge, Refo:£(io, S;1n Par.ricio, Victoria and \villacy Tier 2 · C'.;umies of I.lee, Ilrooks, Fort I.lend, Goliad, Harclin, Hildago,.Jasper,Jim \X1ells,and \y Darron Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 56 of 197 l Prope:rty Policy \Tirginia Tier l Counties Accomack, Charles Cray, Chesapeake, Gloucester, Isle ofWighr.,James City, Lancaster, j\;fathews, ::VEddksex, New I<.ent, Northampton, Northumberland, Prince George, Surry. Sussex, York and \1.:-'estmoreland lndependent Cities of Chesapeake, Hampton, Newport News, Norfold, Poquoson, Ponsmom:h, Suffolk, Virginia Beach and Williamsburg. p. "Vacant" The term "vacant" means that less than 25% of the total rent.able square footage of a "building" is rented to a lessee or sub-lessee and used by the lessee or sub-lessee to con duet its cuswmary operations. Customary operations are furtl1er defined as the common operations and activities of the lessee or sub lessee when using the building for its intended p1u-pose. CJ. "\Xiater Damage" Accidental discharge or leakage of water or sttam as the direct result of the breaking apart or cracking of a plumbing, heating, air conditioning or other system or appliance (other than a sump system including its related equipment and pans), that is .located on the "described premises" and contains 'Jt.~ater or stea1n. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 57 of 197 FALL.SLAKE JN-SURANGE COMPANIES Property Policy FALLS LAKE NATIONAL INSURANCE C01"1PANY (l\ Stock Insurance Company, hcrcin:1frer the ''Company~·, Named Insured: The 1\:Iember of Commercial Indusr.rial Building Owners Alliance ("CIBA") as more fully defined in the policy Policy Number: CI BA-000002-00 Effective Date: 1vfarch 31, 2019 THIS ENDORSEl\·1ENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ENDORSEMENT NO. 1 EXTENSIONS OF SUBUMIT ENDORSEMENT It is hereby noted agreed friar the sublimits contained in the policy attached can be amended to a maximum per lnsnred per occurrence sublimit as shown below: Extensions of Covetagt *t : Limits: Accounts Receiv:tble $250,000 Additions under construction, alterations and repairs to real property including 1m1tcrials :1nd supplies $5,000,000 Newly Acquired Property (90 Day reporting) Included Back up of Sewers and Drains .. other than flood $1,000,000 Building Ordinance including Increased Cost of Construction: Coverage !\. (Loss undamaged Real property) Included Coverage B (Demolition) Up to $25,000,000 Coverage C (Increased Cost of Construction) Up to $25,000,000 Coverage D (1ncreastd Business Income, Rents) Up to $10,000,000 Business Personal Property $1,000,0()() Civil Authority 5 mi/ 30 Days Cancdlation Cbuse 90/10 day Non-Pay Debris Remonl 25% of Loss Elecr.ronic Data Prncessing/1\frclia Valuation Included Exhibit.ion, Exposit.ion, Trade Show Included Ext.ended Period of Liability 365 Days Expediting Expense Included b,tra Expense Included hne Arts SlOU,000 Fire Dcparnnent Service Charge $250,000 .:\!old Rc:sulting from Covered Cause of Loss Included I ngrcss/Egn::ss 5 mi/ 30 Days Land Improvements Included L,N·ns, Landscaping, Shrubs, or Trees SHJ,000/ir.em - $500,000 per occurrence Leasehold I merest Included LEED Green Building Covernge $2,500,000 Lr,cks :tnd Keys $25,000 Miscellaneous Un-Named Location Coverage '.;500,000 0 ff Prl'rnis,"s Services lnclndecl Pollur.nnr Cle:111 Up & Removal - Per Occurrence and i\nnu:11 Aggregate S l 00,(J(J!i Prc-parnt.ion Proof of Loss/Professional Fees (Excluding Public Adjuster Fees) S>l 50,(IO(J E:--tc·nsi,m~ of Sublimirs Endorsement 03312017 Prot(:crion and Prese1Tat.ion of 'Property Included Emergency \',1c1ting Expense $.I (HJ,O(JO Tenam Reloo,ion and Storage of Personal Effects costs S lli0,000 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 58 of 197 Propexty Policy Reward (Arson, Crimcj $25,000 Business Personai Property whik in Trnnsit or Off Premises $100,000 Outdoor Real Property (Pools, Paved Surfaces, \\7allsj .Included Temporary Removal of Property $100,000 Increased Tax Liability for Rental 1ncome $25/100 \!aluabie Papers $250,0(1() ·t -~u),. l 1· 1n.1.1t.s . are per 1·.nsurec 11· .... ocatlon. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 59 of 197 Property Policy FALLS LAKE NATIONAL INSURANCE C01\:1PANY Named Insured: The )\:!ember of Comrnercial :Industrial Building Ovmers Alliance ('"Cl BA'') as more folly defined in the policy Policy Number: CIBA-000002-00 Effective Date: .l\forch 31, 2019 THIS PAGE IS RESERVED FOR FUTURE USE Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 60 of 197 FALL.LAKE INSURANCE t::OMPANJEs· Property Policy FALLS LAKE NATIONAL INSURANCE COl\tIPANY Named Insured: The iVlember of Commercial Industrial Building Owners Alliance ("ClBA") :is more fully defined in the policy Policy Number: CI BA-000002-00 Effective Date: March 31, 2019 THIS PAGE IS RESERVED FOR FUTURE USE Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20.....•..... Page 61 of 197 FALLHLAKE P:rope:rty Policy FALLS LAKE NATIONAL INSURANCE COlVIPANY (A Sr.ock Insurance Company, hereinafter tl1e "Compani') Named Insured: The i'dcmber of Commercial Indusr.rial Building Owners Alliance ("ClBA ") as more fully defined in the policy Policy Number: CIBA-000002-00 Effective Date: March 31, 2019 THIS ENDORSEMENT CfL\NGES THE POLICY. PLEASE READ IT CAREFULLY. ENDORSEMENT NO. 4 .. SERVICE OF SUIT CLAUSE - (l\:IETHOD OF SUIT IN STATE OF C/1.LIFORNIA) This endorsement modifies insurance provided under the follo,v:ing: ALL COVERAGE PARTS IN THIS POLICY :Falls Lake National Insurance Company hereby appoints the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute or his successor or successors in office, as the true and lawful attorney upon whom may bt served any hwful process in any action, suit or proceeding instit1m:d by or on behalf of the Insured or any beneficiary hereunder arising out of this contract of insurance. The Company forthermore designates as the agent to whom a copy of the Service of Process .should be forwarded by the Superintend em, Commissioner or Director of Insurance c,r other officer specified for that purpose in die Srn:e of Califorria. A copy of any process, "suit", complaint or surnmons should be sent to Karen Saturday, Claims J\fanager · \Xlestern Region, Palls Lake Nationai Insurance Company, 30211 Avenicla de las Banderas, Rancho S,mta Marg:nita, CA 92688. ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHAJ-.JGED. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 62 of 197 Prope:rty Policy FALLS LAKE NATIONAL INSURANCE COlvIPANY Named Insured: The i\.kmbcr of Commercial Industrial Building O\>mers Alliance ("CIBA'') as more fully defined iri the policy Policy Number: CIBA-000002-00 Effective Date: J\forch 31, 2019 THIS ENDORSElVrENT CfL\NGES THE POLICY. PLEASE READ IT CAREFULLY. ENDORSEMENT NO. 5 EXCLUSION OF CERTIFIED ACTS OF TERRORISlVI A. The following exclusion is added: This insurance docs not apply to: TERRORISlV[ "Any injury or damage" arising, dirtctly or indirectly, out of :1 "certified act of terrorism". B. 1l1e following definitions are added: 1. For the purposes of this endorsement, "any injury or ch1mage" means any injury or damage covered under any Coverage Pan to which this endorsement is applicable, and includes but is not limited to '·bodily injury", "property damage", ".personal and advertising injury", "injury" or "enviromnenml dmn:1.gc:" as may be defined in any applicable Coverage Part. 2. "Certified act of terror.isrn" means an act that is certified by the Secretmy of the Treasury, in concurrence with the Secretary of State :md tbe Attorney General of the United States, to be an act of terrnrism pursuant to the federni 'ferrorism Risk Insurance Act. The criteria contained in the Terrorisrn Risk lnsurnnce Ac: for a "certified act of terrorism'' include the following: a. The act resulted _in insured losses in excess of $5 million in the aggregate, attributable ro all types of .insurance subjccr. to r.he Terrorism Risk Insurance Act.; and b. 'fhe 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 civili:m population of r.he United States or r.o influence r.he policy or affect the con- duct of the United Srnt:es Covernmcnt by coercion. ALL OTHER TERivIS AND CONDITIONS OF THE POLICY REI\1.AIN UNClli\.NGED. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 63 of 197 P:rope:rty Policy FALLS LAKE NATIONAL INSURANCE C01\'1PANY Named Insured: T'he ]\kmber ,,f Commercial Industrial Building Owners Alliance ("CIBA") as more fully defined in the policy Policy Number: CI BA-000002-00 Effective Date: March 3 L 201 9 THIS ENDORSEMENT CHANGES THE POLICY PLEASE READ IT CAREFULLY. ENDORSEMENT NO. 6 GBA PROPER.TI' ENDORSEMENTS FORMS LIST It is hereby no red and agreed that the CIBA Property Endorsements Forms List applies to a location if endorsed by ClBA :Insurance Services, Inc. to tbe member contract. 01 AAC-001 CO 0319 Coverage ACTIVE ADULT COMMUNITY COVERAGE EXTENSIONS 01 AAD-ST1 DE 0319 Deductible ACCOUNT PLUS AGGREGRATE DEDUCTIBLE 01 ACV-001 LI 0319 Limitation ACTUAL CASH VALUE LIMITATION 01 AML-ST1 LI 0319 Limitation ACCOUNT MAXIMUM LIMIT OF LIABILITY 01 BOD-001 EX 0319 Exclusion BUILDING ORDINANCE, DEMOLITION AND INCREASED COST OF CONSTRUCTION EXCLUSION 01 BRC-100 LI 0319 Limitation REAL PROPERTY REPLACMENT COST LIMITATION (100% of Scheduled Value) 01 BRC-110 LI 0319 Limitation REAL PROPERTY REPLACMENT COST LIMITATION {110% of Scheduled Value) 01 BRC-125 LI 0319 Limitation REAL PROPERTY REPLACMENT COST LIMITATION (125% of Scheduled Value) 01 BRC-150 LI 0319 limitation REAL PROPERTY REPLACMENT COST LIMITATION (150% of Scheduled Value) COMMERCIAL PROPERTY COVERAGE LIMIT (100% of Scheduled Real & Business Personal 01 CLE-100 LI 0319 Limitation Property & Loss of Income Values) COMMERCIAL PROPERTY COVERAGE LIMIT (125% of Scheduled Real & Business Personal 01 CLE-125 LI 0319 Limitation Property & Loss of Income Values) COMMERCIAL PROPERTY COVERAGE LIMIT (150% of Scheduled Real & Business Personal 01 CLE-150 LI 0319 Limitation Property & Loss of Income Values) 01 CMP-001 OT 0319 Other MINIMUM EARNED PREMIUM - COASTAL PROPERTIES WITH WINDSTORM COVERAGE 01 COC-ST1 LI 0319 Limitation BUILDINGS IN THE COURSE OF CONSTRUCTION AND/OR UNDER RENOVATION LIMITATION Case 4:20-cv-08421-JSTe Document 1-1 Filed 11/30/20 Page 64 of 197 Property Policy DEMOLITION, INCREASED COST OF CONSTRUCTION, INCREASED LOSS OF INCOME DUE TO 01 DCI-XXX LI 0319 Limitation BUILDING ORDINANCE COMBINED SINGLE SUB-LIMIT (Fill In) DOWN ZONING COVERAGE - REPLACEMENT COST (with Limitation to 100% of Scheduled 01 DZC-001 LI 0319 Limitation Real Property Value) 01 EME-001 CO 0319 Coverage EARTH MOVEMENT EXTENSION ENDORSEMENT 01 EPl-365 CO 0319 Coverage EXTENDED PERIOD OF INDEMNITY 365 DAYS 01 ESL-001 EX 0319 Exclusion EARTHQUAKE SPRINKLER LEAKAGE EXCLUSION 01 ESL-XXX DE 0319 Deductible EARTHQUAKE SPRINKLER LEAKAGE DEDUCTIBLE (Fill In) 01 FRC-001 LI 0319 Limitation FUNCTIONAL REPLACEMENT COST LIMITATION 01 HOA-001 EX 0319 Exclusion HOMEOWNERS AND CONDOMINIUM ASSOCIATION UNIT PROPERTY EXCLUSION (Bare Walls) HOMEOWNERS AND CONDOMINIUM ASSOCIATION UNIT PROPERTY COVERAGE (All 01 HOA-002 CO 0319 Coverage Inclusive) 01 HOA-011 LI 0319 Limitation LOSS OF INCOME COVERAGE LIMITED TO CONDOMINIUM FEE INCOME ONLY HOMEOWNERS AND CONDOMINIUM ASSOCIATION UNIT PROPERTY COVERAGE - Limit Per 01 HOA-XXX CO 0319 Coverage Unit (Fill In) INDUSTRIAL/COMMERCIAL CONDOMINIUM ASSOCIATION - UNIT PROPERTY EXCLUSION 01 IND-001 EX 0319 Exclusion (Bare Walls) INDUSTRIAL/COMMERCIAL CONDOMINIUM ASSOCIATION - UNIT PROPERTY COVERAGE - 01 IND-XXX CO 0319 Coverage Limit Per Unit (Fill In) 01 LOS-ST1 OT 0319 other LOSS PAYEE 01 LPP-STl OT 0319 Other LOSS PAYABLE PROVISIONS 01 LVP-ST1 CO 0319 Coverage LIMITED VACANCY PERMIT ENDORSEMENT- EXCLUDED OR SUBLIMITED CAUSES OF LOSS 01 MAR-001 EX 0319 Exclusion MARINE PROPERTY EXCLUSION 01 MEP-025 OT 0319 Other MINIMUM EARNED PREMIUM (25%) 01 MEP-050 OT 0319 other MINIMUM EARNED PREMIUM (50%) 01 MEP-100 OT 0319 other MINIMUM EARNED PREMIUM (100%) 01 MOR-ST1 OT 0319 Other MORTGAGEE/LOSS PAYEE 01 NWS-001 EX 0319 Exclusion NAMED WINDSTORM EXCLUSION 01 PIL-001 LI 0319 Limitation LOSS OF INCOME PERIOD OF INDEMNITY LIMITED TO ONE YEAR 01 PPE-001 EX 0319 Exclusion PERSONAL PROPERTY EXCLUSION 01 PPL-STl LI 0319 Limitation PERSONAL PROPERTY LIMITATION (Fill In) 01 PRS-001 LI 0319 Limitation PROTECTIVE SAFEGUARDS 01 PSE-STl EX 0319 Exclusion SPECIFIC PROPERTY EXCLUSION (Fill In) 01 PSL-ST1 LI 0319 Limitation SPECIFIC INSURED PROPERTY COVERAGE LIMITATION (Fill In) 01 PUD-001 EX 0319 Exclusion PLANNED UNIT DEVELOPMENT EXCLUSION 01 RAC-015 LI 0319 Limitation ROOF-ACTUAL CASH VALUE LIMITATION (Older Than 15 Years) 01 SBU-001 EX 0319 Exclusion BACK UP OR OVERFLOW OF SEWERS OR DRAINS - EXCLUSION 01 SBU-XXX DE 0319 Deductible BACK UP OR OVERFLOW OF SEWERS OR DRAINS- DEDUCTIBLE (Fill In) 01 SBU-XXX LI 0319 Limitation BACK UP OR OVERFLOW OF SEWERS OR DRAINS - LIMITATION (Fill In) 01 TCP-XXX DE 0319 Limitation TENANT CAUSED PROPERTY DAMAGE DEDUCTIBLE (Fill In) 01 TDC-XXX DE 0319 Deductible TH EFT DEDUCTIBLE - COPPER MATERIALS (Fill In) Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 65 of 197 p :rone:r:vt p 0 1'lCV 01 TE-001 EX 0319 Exclusion LOSS OF INCOME AND/OR EXTRA EXPENSE EXCLUSION 01 VAC-001 EX 0319 Exclusion VACANT BUILDING EXCLUSION 01 VAC-XXX DE 0319 Deductible VACANT BUILDING DEDUCTIBLE (Fill In) 01 VAT-001 EX 0319 Exclusion VANDALISM AND THEFT EXCLUSION 01 VAT-XXX DE 0319 Deductible VANDALISM AND THEFT DEDUCTIBLE (Fill In) 01 VPE-001 CO 0319 Coverage VACANCY PERMIT 01 VPE-ASl LI 0319 Limitation AUTOMATIC SPRINKLER SYSTEM WARRANTY 01 VPE-BAl LI 0319 Limitation CENTRAL STATION BURGLAR ALARM WARRANTY 01 VPE-FA1 LI 0319 Limitation CENTRAL STATION FIRE ALARM WARRANTY 01 WAH-001 EX 0319 Exclusion WIND AND/OR HAil EXCLUSION 01 WAH-BXX-XXX DE Deductible WIND AND/OR HAIL DEDUCTIBLE (Applies Per Building) 0319 01 WAH-STl DE 0319 Deductible ACCOUNT WIND AND/OR HAIL DEDUCTIBLE (Per Occurrence For Account) 01 WAH-XPC-XXX DE Deductible WIND AND/OR HAIL DEDUCTIBLE (Percentage of values at location) 0319 01 WAH-XXX DE 0319 Deductible WIND AND/OR HAIL DEDUCTIBLE (Dollar Amount Per Location - Fill In) 01 WF-l0OK DE 0319 Deductible WILDFIRE DEDUCTIBLE 01 WHC-001 EX 0319 Exclusion EXCLUSION - COSMETIC LOSS TO ROOF COVERINGS OR SIDING 01 WLD-001 EX 0319 Exclusion WATER OR LIQUID DAMAGE FROM ANY CAUSE EXCLUSION 01 WLD-XXX DE 0319 Deductible WATER OR LIQUID DAMAGE FROM ANY CAUSE DEDUCTIBLE (Fill In) 01 WSR-001 EX 0319 Exclusion WOOD SHAKE TYPE ROOF - BUILDING ORDINANCE EXCLUSION 03 EBC-001 EX 0319 Exclusion EQUIPMENT BREAKDOWN EXCLUSION 03 EBC-XXX DE 0319 Deductible EQUIPMENT BREAKDOWN DEDUCTIBLE 03 EBC-STl LI 0319 Coverage EQUIPMENT BREAKDOWN COVERAGE LIMIT 05 CRD-001 0319 Coverage COMMERCIAL CRIME COVERAGE SUPPLEMENTAL DECLARATIONS ENDORSEMENT ECP 10 544 09 17 Exclusion EXCLUSION - EXISTING DAMAGE * The Jetter "X" in the CIBA Reference Number indicates that there are multiple version of the same endorsement, with different amoums for limits or deductibles. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 66 of 197 P:rope:rty Policy THIS PA.GE IS RESERVED FOR FUTURE USE Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 67 of 197 Equipment Breakdown Coverage Form Declarations Named Insured: Refer to Evidence of Commercial Prope1ty Insurance to which these Declarations are attached. Property Identification Number... Refer to Evidence of Commercial Property Insurance to which these Declarations are attached. Effective Date: ...... Refer to Evidence of Commercial Property Insurance to which these Declarations are attached. Issue Date...... Refer to Evidence of Commercial Property Insurance to which these Declarations are attached. These coverages apply to the location of the property identified by the property identification number in the Evidence of Commercial Property Insurance to which these Declarations are attached. Coverages Limits Equipment Breakdown Limit ...... $7,500,000 Property Damage ...... Included in Equipment Breakdovvn Limit Off Premises Property Damage ...... $100,000 Business Income ...... Included in Equipment Breakdown Limit Extra Expense ...... Included in Equipment Breakdown Limit Service Interruption ...... $100,000 Contingent Business Income ...... Excluded Perishable Goods ...... $500,000 Data Restoration ...... $50,000 Demolition ...... $100,000 Ordinance or Law ...... $100,000 Expediting Expenses ...... $250,000 Hazardous Substances ...... $100,000 Deductibles Combined, All Coverages ...... Refer to Evidence of Comrnercial Property Insurance to which these Declarations are attached. Other Conditions No Coinsurance applies to this policy. Extended Period of Restoration 30 Days Service Interruption Waiting Period - 24 Hours o:, EBC-100 DC o:, 1:, Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 68 of 197 Equipment Breakdown Coverage Form Various provisions in this policy restrict coverage. Read the entire policy carefolly to determine rights, duties, and what is and is nor covered. Throughout this policy, the words '·you" and "your" refer to the Named Insured shown in the Declarations. The words "we," "us" and '"our'· refer to the Company providing this Insurance. Other ·words and phrases that appear in quotation marks have special meaning. Refer ro Section G - DEFINITIONS. Examples are shown for illustrative purposes only and do not represent predicted or expected outcomes. A. COVERAGE This Equipment Breakdown Coverage provides insurance for a Covered Cause of Loss as defined in A. l. below. In the event of a Covered Cause of Loss, we will pay for loss as described in A2. below. 1. Covered Cause of Loss -- "Accident" The Covered Cause of Loss- for this Equipment Breakdo,,11 Coverage is an ·'accident." Without an "accident," there . is no Equipment Breakdown Coverage. a. "Accident" means a fortuitous event that causes direct physical damage to "covered equipment." The event must be one of the fol lowing: · (1) Mechanical breakdown, including rnpture or bursting caused by centrifugal force; (2) A1tificially generated electrical cmrent, including electrical arcing, that damages electrical devices, appliances or wires; (3) Explosion, other than combustion explosion, of steam boilers, steam piping, steam engines or steam rnrbincs; (4) An event inside steam boilers, steam pipes, steam engines or steam turbines that damages such equipment; (5) An event inside hot water boilers or other water heating equipment that damages such equipment; or (6) Bursting, cracking or splitting. "Accident" docs not include any condilion or event listed in Definition G. l .b. b. "Covered Equipment" rne:.ms the following: (l) Unless specified otherwise in the Declarations: (a) Equipment that generates, transmits or util.izes energy, including electronic communications and data processing equipment; or (b) Equipment which, during nonnal usage, operates under vacuum or pressure, other than the weight of its contents. '·Covered equipment" may utilize conventional design and technology or new or newly commercialized design and technology. (2) Except as specifically provided for under Off Premises Property Damage, Service Interruplion, Contingent Business Jncome, paragraph (2) of Perishable Goods and Civil Authority, such equipment mus! be at a location described in the Declarations and must be owned or leased by you or operated under your control. "Covered equipment'" does not include any property listed in Definition G.8.b. 2. Coverages Provided only for that portion of the loss, damage or This section lists the coverages that may apply expense that is solely attributable to the in the event of an "accident." Each coverage is "accident.,. subject to a specific limit as shown in the a. Property Damage Declarations. See paragraph C.2. for details. \Ve will pay for physical damage to These cove.rnges apply only to the direct result '·covered property'· that is al a location ofan "accident." For each coverage. we will pay indicated in the Declarations al the time of i.nch!dcs 1.~opyright material nr .lnsura1k~c Services Ofiice~ lnc. with ii"s p,'!nnissiou. 03 EBC-002 CO 03 l 3 l ofJS Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 69 of 197 the '·accident.'' "anchor location." b. Off Premises Property Damage g. Perishable Goods Jfyou have transponable "covered (I) We will pay for physical damage to equipment'" lhal, at the time of the "perishable goods'' due to "accident,'' is within the Coverage "spoilage." Territory, but is not: (2) We will also pay for physical (1) At a location indicated in the damage to ''perishable goods" due to Declarations; or ''spoilage'' that is the result of an (2) At any other location ovmed or leased "interruption of service." by you, (3) We will also pay for physical we will pay for physical damage to such damage to "perishable goods" due to "covered equipment.'' contamination from the release of refrigerant, including but not limited c. Business Income to ammonia. (J) We will pay your actllal loss of "business income'' during the (4) We will also pay any necessary "period of restoration'' that results expenses you incur during the "period ofrestoration'' to reduce the directly from the necessary total or amount ofloss under this coverage. partial interrnption of your business. We will pay for such expenses to the (2) We will also pay any necessa1y extent that they do not exceed the expenses you incur during the amount ofloss that otherwise would "period of restoration" to reduce the have been payable nnder this amount of loss under this coverage. coverage. We ,vill pay for such expenses to the extent that they do not exceed the h. Data Restoration amount of loss that othe1wise \vould ( l) We will pay for your reasonable and have been payable under this necessary cost to research, replace coverage. or restore lost ·'data." (3) We will consider the actual (2) We will also pay for your loss and experience of your business before expense as defined under Business the "accident" and the probable Income coverage and Extra Expense experience you would have had coverage that is the result ofh.(l) without the ·'accident" in above, if such coverage is otherwise determining the amount of our applicable under this policy. This payment. coverage is included within and subject to your Data Restoration cl. Extra Expense limit. \Ve will pay the reasonable and necessary i. .Demolition ''t:xtra expense" to operate your business during the "period of restoration." ( l) This coverage applies if an "accident" damages a building that e. Service Interruplion is "covered property'' and the loss is We will pay for your loss and expense as increased by an ordinance or law defined under Bl1s.iness Income coverage that: and Extra Expense coverage that is the result of an ''interruption of service.'' ta) Requires the demolition ofa building that is otherwise f. Contingent Business Income reparable; We will pay for your lo::;s and expense as (b) ls in force at the time of the defined under Business Income and Extra ·'accident"'; and Expense coverages that: (c) J;; not addressed under ( l) Results from an ''interrnption of Hazardous Substances supply''; or coverage. (2) Results Crom an ··accident'' to an (2) We will pay for the !'<)]lowing Include~ copyright mall-rial of Insurance Se-rviecs Oflitt\ Inc. ,vith its 1x·n11issit)n. 2 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 70 of 197 additional costs to comply with such (3) As used in this coverage, additional ordinance or law: costs mean those beyond what (a) Your actual and necessary cost would have been payable under this to demolish and clear the site of Equipment Breakdovv11 Coverage the undamaged parts of the had no such ordinance or law been building; and in force at the lime of the "accident." (b) Your actual and necessary cost (4) We will also pay for your loss and to reconstruct the undamaged expense as defined under Business paJls of the building. .Income coverage and Extra Expense coverage that is the result ofj.(l) (3) As used in this coverage, additional above, if such coverage is otherwise costs mean those beyond what applicable under this policy. This would have been payable under th.is coverage is included within and Equipment BreakdO\m Coverage had no such ordinance or law been subject to your Ordinance or Law in force at the time of the ''accident." limit. (4) We 1,vill also pay for your loss and k. Expediting Expenses expense as defined under Business With respect to your damaged "covered Income coverage and Extra Expense property," we will pay the reasonable extra coverage that is the result of i.( 1) cost to: above, if such coverage is otherwise (1) Make tempormy repairs; and applicable under this policy. This (2) Expedite pennanent repairs or coverage is included ,,ithin and permanent replacement. subject to your Demolition limit. I. Hazardous Substances j. Ordinance or La,v (1) We will pay for the additional cosl (1) This coverage applies if an to repair or replace "covered "accident" damages a building that properly'' because of contamination is "covered property" and the loss is by a "hazardous substance.'' This increased by an ordinance or law includes the additional expenses to that: clean up or dispose of such property. (a) Regulates the construction or This does not include contamination repair of buildings, including of"perishable goods" by refrigerant, ·'building utilities"; including but not limited to (b) ls in force at the time of the ammonia, which is addressed in "accident'"; and Perishable Goods, A.2.g.(3). (c) .Is not addressed under (2) As used in this coverage, additional Demolition coverage or costs mean those beyond what Hazardous Subst,\nces would have been payable under this coverage. Equipment Breakdmvn Coverage had no "hazardous substance'' been (2) We \Vill pay for the following involved. additional costs LO comply with such ordinance or law: (3) We will also pay for your loss and expense as defined under Business (a) Your act1ml and necessary cost .Income coverage and Extra Expense to repair the damaged portions coverage that is the result of l.( l) of the building: above, if such coverage is otherwise (b) Your actual and necessary cost applicable under this policy. This to re.::onstruct the damaged coverage is included within and portions of the building; and subject lo your Hazardous (c) Your actual and necessary cost Substances limit. to bring undamaged portions of m. Newly Acquired Locations the building into rnrnpliance ( l) You will notify us promptly of any with the ordinance or Jaw. newly acquired location that you Include:-; copyright material of Insurance Services Office, rnc. with itfi pern1issil)n. 3 of 18 Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20 Page 71 of 197 have purchased or leased during Lhe Declarations are extended to an Policy Period. expansion or rehabilitation of that (2) All coverages applicable to any location. scheduled location under rhis (3) This coverage begins at the time you Equipment Breakdown Coverage are begin the expansion or rehabilitation extended to a newly acquired project. location that you have purchased or (4) We will charge you add.itional leased during the Policy Period. premium for newly acquired (3) This coverage begins at the time you equipment from the date the acquire the property. As respects equipment is installed. newly constructed properties, we o. Civil Authority will only consider them to be We will pay for your loss and expense as acquired by you when you have folly defined under Business Income and Extra accepted the completed project. Expense coverages that results from a civil (4) This coverage ends when any of the authority prohibiting access to a location following first occurs: described in the Declarations due solely to (a) This Pol.icy expires; an "accident'" that causes damage to (b) The number of days specified in property within one mile of such location. the Declarations for this provided that such action is taken in coverage expires after you response to dangerous physical conditions acquire the location; resulting from the "accident," or to enable a civil authority to have unimpeded access Lo (c) Thl~ location is incorporated into the regular coverage oflhis the damaged property. policy; or B. EXCLUSIONS We will not pay for any excluded loss, damage or (d) The location is incorporated into expense, even though any other cause or event the regular coverage of another contributes concurrently or in any sequence to the Equipment Breakdovm policy loss, damage or expense. you have. (5) If limits or dedtu.:tibles vary by l. We will not pay for loss, damage or expense caused directly or indirectly by any of the location, the highest limits and following, whether or not caused by or resulting deductibles will apply to newly from an "accident." acquired locations. However, the most we will pay for loss, damage or a. Fire and Explosion expense arising from any "one (1) Fire, including smoke from a fire. accident" is the amount shown as tlK (2) Combustion explosion. This includes, ·Newly Acquired Locations limit .in but is not limited to, a combustion the Declarations. explosion of any steam boiler or (6) We will charge you additional other fired vessel. premium for newly acquired (3) Any other explosion. except as locations from the dare you acquire specifically provided in A. l .a.(3 ). the property. b. Ordinance or Law n. Course of Construction The enforcement ot: or change in, any This coverage is automatically included and ordinance, law, regulation, rule or ruling does not need to be indicated in the regulating or restricting repair, Dec lararions. replacement, alteration, use, operation, (I) You will notify us promptly of any construction or installation, except as expansion or rehabilitation or any specifically provided inA.2.i.,_i. and I. location described in the (Demolition, Ordinance or Law and Declarations. Hazardous Substances covernges). (2) ;\II coverages applicable 10 any C. Earth ,\fovemcnt location described in the Earth movement, whether natural or l!lL"ludes Ci.1pyrig.ht ma1t~rial of lnstirance Sl·1-vices Office. lne. wiih its pcnnissil)n. 4 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 72 of 197 human-made, including but not limited to Vandalism, meaning a willful and earthquake, shock, tremor, subsidence, malicious act that causes damage or landslide, rock fo!L earth sinking,-sinkhole destrnction. collapse or tsunami. 2. We will not pay for an ':accident" caused by or d. Nuclear Hazard resulting from any of the follm-,~ng causes of Nuclear reaction, detonation or radiation, loss: or radioactive contamination, however a. Lightning. caused. b. Windstmm or Hail. However, this e. \Var and Military Action exclusion dot.~s not apply \.Vhen: ( l) War, including undeclared or civil (1) "Covered equipment" located within war; a building or structure suffers an {2) Warlike action by a military force, "accident" that results from wind including action in hindering or blow11 rain, snow, sand or dust; and defending against an actual or (2) The building or structure did not first expected attack, by any government, sustain wind or hail damage to its sovereign or other authority using roof or walls through which the rain, military personnel or other agents; or snow, sand or dust entered. (3) Insurrection, rebellion, revolution, c. Collision or any physical contact caused by usurped power, political violence or a "vehicle." This includes damage by action taken by governmental objects falling from aircraft. However, this authority in hindering or defending exclusion does not apply to any unlicensed against any of these. "vehicles" which you 0\\-11 or which are f. 'Water operated in the course of your business. (1) Flood, surface water, waves, tides, d. Riot or Civil Commotion. tidal waves, overflow of any body of e. Leakage or discharge of any substance water, or their spray, all whether from an automatic sprinkler system, driven by wind or not; including collapse of a tank that is part of (2i Mudslide or mudflow; or the system. (3) Water that backs up or overflows f Volcanic Action. from a sewer, drain or sump. g. An electrical insulation brcakdovm test. g. Failure to Protect Property h. A hydrostatic, pneumatic or gas pressure Your failure to use all reasonable means to test. protect "covered property" from damage l. \Vater or othermeans intended to following an "accident." extine,'llish a fire, even \\ihen such an h. Finrs attempt is unsuccessful. Fine, penally or punitive damage. .I· Elevator coll.ision . !\fold 3. We will not pay for an ''accident" caused by or resulting from any of the following perils, if Mold, fungus, mildew or yeast, including such peril is a covered cause of loss under any spores or toxins created or produced by another coverage part or policy of insurance you or emanating from such mold, fungus, have, whether collectible or not, and without mildew or yeast. This includes, but is not regard to whether or not the other coverage part limited to, costs arising from clean-up, or policy of insurance provides the same remediation, containrnetJt, removal or coverage or scope of coverage as this policy. abatement of su..:h mold, fungus, mildew, yeasr, spores or toxins. However, this a. Falling Objects. exclusion do.::s !lot apply to ·'spoilage'' of b. \.Ve.ight of Snmv, Ice or Sleet. personal property that is "perishable c. Water Damage, meaning discharge or goods" to the extent that such ''spoilage'' is kakage of water or steam as the direct cov.::red under Perishable Goods coverage. result of the breaking apart or cracking of .l · Vandalism any part of a system or appliance containing wal'er or steam. ln1..'ludt'S copyright material nf insurance Services OJlice~ Inc. with its permissit)n. 5 of 13 Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20 Page 73 of 197 d. Collapse. ''period of restoration." e. Breakage of Glass. d. Any increase in loss resulting from an f. Freezing caused by cold weather. agreement between you and your customer or supplier. This includes, but is not limited g. Discharge of molten material from to, contingent bonuses or penalties, late equipmem. including the heat from such fees, demand charges, demurrage charges discharged material. and liquidated damages. 4. Exclusions 2. and 3. do not apply if all of the 6. With respect to Off Premises Property Damage following are true: coverage, Service Interrnption coverage, a. The excluded peril occurs away from any Contingent Business Income coverage, location described in the Declarations and paragraph (2) of Perishable Goods coverage and causes an electrical surge or other electrical Civil Authority coverage, we will also not pay disturbance; for an "accident" caused by or resulting from b. Such surge or disturbance-is transmitted any of the perils listed in Exclusion 3. above, through utility service transmission lines to whether or not such peril is a covered cause of a described location; loss under another coverage part or policy of c. At the described location, the surge or insurance you have. disturbance results in an ·'accident" to 7. With respect to Data Restoration coverage, ,ve "covered equipment'" that is owned or will also not pay to reproduce: operated under the control of you or your a. Software programs or operating systems landlord; and that are not commercially available; or d. The loss, damage or expense caused by b. "Data" that is obsolete, unnecessary or such surge or disturbance is not a covered useless to you. cause of loss under another coverage part With respect to Demolition and Ordinance or or policy of insurance you have, whether 8. Law coverages, we will also not pay for: collectible or not, and without regard to whether or not the other coverage part or a. Increased demolition or reconstruction policy of insurance provides the same costs until they are actually incuffed; or cove.rage or scope of coverage as this b. Loss due to any ordinance or law that: policy. (1) You were required to coniply with 5. With respect to Business Income, Extra Expense before the loss, even if the building and Service Jnrem.1ption coverages, we will also was undamaged; and not pay for: (2) You failed to comply with; a. Loss associated with business that would whether or not you were aware of such non not or could not have been caJTied on if the compliance. "accident'" had not occurred; C. LIM.ITS OF 1NSURANCE b. Loss caused by your failure to use due Any payment made under this Equipment Breakdovv11 diligence and dispatch and all reasonable Coverage will not be increased if more than one means to resume business; insured is shown in the Declarations or if you are C. That part of any loss that extends beyond or comprised of more than one legal entity. occurs after the "period of restoration." L Equipment Breakdown Limit This includes, but is not limited to: The most we v.-i11 pay for loss, damage or ( l) "Business income" that would have expense arising from any "one accident" is the been earned atler the ''period of amount shown as the Equipment Breakdown restoration," even if' such loss is the Limit in the Declarations. direct result of' the suspension, lapse 2. Coverage Limits or cancellation of a contract during 1he "period of restoration''; and a. The limit of your insurance under each of the coverages listed in A.2. from loss, (2) ·'Extra expense" to operate your damage or expense arising from any ''one business after the '"period of accident" is the amount indicated for that reswration," even i r such loss is coverage in the Declarations. These limits contracted for and paid during the are a part of. and not in addirion to. the Indudes copyright matt'rial nf lnsrn--::mcc Services Office~ t:nc. with its pt'n11ission. 6 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 74 of 197 Equipment Breakdown Limit. ]fan amount 1. Deductibles for Each Coverage of time is shown, coverage will continue a. Unless the Declarations indicate that your for no mo.re than 1ha1 amount of time deductible is combined for all cove.rages, immediately following the "accident." lf a multiple deductibles may apply to any "one coverage is shown as '·Included,'' that accident." coverage is provided up to the remaining b. We will not pay for loss, damage or amount of the Equipment Breakdown 1 expense under any coverage until the Limit. lfno limit is shown in the amount of the covered loss or damage Declarations for a coverage, or ifa exceeds the deductible amount indicated for coverage is shown as Exduded in the that coverage in the Declarations. We will Declarations, that coverage will be then pay the amount of loss, damage or considered to have a l.imit of SO. expense in excess of the applicable b. If two or more coverage limits apply to the deductible amount, subject to the applicable same loss or portion of a loss, we will pay limit indicated in the Declarations. only the smallest of the applicable limits c. If deductibles vary by type of "covered for that loss or portion of the loss. This equipment" and more than one type of means that if: ·'covered equipment" is involved in any (l) You have a loss under one of the "one accident," only the highest deductible coverages listed in A.2.; and for each coverage will apply. (2) All or part of the loss is not covered d. The fo11mving applies when a deductible is because the applicable coverage is expressed as a function of the horsepower Excluded or has a l.imit that is less rating of a refrigerating or air conditioning than the amount of your loss, system. If more than one compressor is used we will not pay the remaining amount of with a single system, the horsepower rating such loss under any other coverage. of the largest motor or compressor ,,~11 EXAMPLE 1 determine the horsepower rating of the Property Damage Limit: $7,000,000 system. Business Jncome Limit: SJ,000,000 2. Direct and Indirect Coverages a. Direct Coverages Deductibles and Indirect Newly Acquired Locations Limit: $500,000 Coverages Deductibles may be indicated in There is an "accident" at a nev,:ly acquired location the Declarations. that results in a Property Damage loss of S200,000 b. Unless more specifically indicated in the and a Business Income loss ofSS00,000. Declarations: We will pay S500,000, because the entire loss is (1) Indirect Coverages Deductibles subject to the Newly Acquired Locations Lirnit of apply to Business Income and Extra S500,000. Expense loss, regardless of where EXAMPLE2 such coverage is provided in this Property Damage Limit: $7,000,000 Equipment Breakdown Coverage; Business Jncome Limit: S500,000 and Hazardous Substances Limit: $25,000 (2) Direct Coverages Deductibles apply There is an ''accident" that results in a loss of to all remaining loss, damage or $100,000. Ifno "hazardous substance" had been expense covered by this Equipment involved, the property d3mage loss would have been Breakdown Coverage. Sl0,000 and the business income loss would have EXAMPLE been $20,000. The presence of the "hazardous .An "accident" results in covered losses as substance" increased the loss by $70,000 (increasing follows: the clean up and repair cosb by $30,000 and SI00,000 Total Loss (all applicable increasing the business income loss hy S40.00O). coverages) We will pay $55,000 (S t0,000 property damage plus S 35,000 Business Income Loss (including $20,000 bus.iness income plus $25,000 hazardous S2,000 of business income loss payable substances). under Data Restoration coverage) D. DEDUCTIBLES 7 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 75 of 197 $ 5,000 Extra Expense Loss completely, for 10 working days. If there In th.is case, the Indirect t:overuges loss had been no "accident,'" the total "business totals $40,000 before application of the income'' at the affected location for those Indirect Coverage Deductible. The Direct 10 working days would have been $5,000. coverages loss totals the remaining $60,000 The Indirect Coverages Deductible is 3 before application of the Direct Coverage Times ADV. Deductible. $5,000 I 10 = $500 ADV 3. Application of Deductibles 3 X $500 = $1,500 Indirect Coverages a. Dollar Deductibles Deductible We ,,,vi]] not pay for loss, damage or d. Percentage of Loss Deductibles expense resulting from any "one accident'' If a deductible is expressed as a percentage until the amount ofloss, damage or expense ofloss, we will not be liable for the exceeds the applicable deductible or indicated percentage of the gross amount of deductibles shown in the Declarations. We Joss, damage or expense (prior to any will then pay the amount ofloss, damage or applicable deductible or coinsurance) expense in excess of the applicable insured under the applicable coverage. If deductible or deductibles, subject to the the dollar amount of such percentage is less applicable limits shown in the Declarations. than the indicated l'v1inimum Deductible, b. Time Deductibles the Minimum Deductible will be the lfa time deductible is shmvn in the applicable deductible. Declarations, we will not be liable for any E. LOSS CONDITIONS loss occurring during the specified number The following conditions apply: of hours or days immediately following the 1. Abandonment "accident." If a time dedudible is expressed There can be no abandonment of any property to .in days, each day shall mean twenty-four us. consecutive hours. 2. Brands and Labels c. Multiple of Average Daily Value (ADV) Deductibles a. If branded or labeled merchandise that is "covered property'' is damaged by an If a deductible is expressed as a number "accident," but retains a salvage value, you times ADV, that amount will be calculated may: as follows: (1) Stamp the word SALVAGE on the The ADV (Average Daily Value) will be merchandise or its containers if the the ''business income" that would have stamp will not physically damage the been earned during the period of merchandise; or interruption had no "accident" occurred, divided by rhe number of working days in (2) Remove the brands or labels, if that period. The ADV applies to the doing so ·will not physically damage ''business income'· value of the entire the merchandise. You must re-label location, whether or not the loss affects the the merchandise or its containers to entire location. If more than one location is comply with the law. included in the valuation of the loss, the b. We will pay for any reduction in value of ADV will be the combined value of all the salvage merchandise resulting from affected locations. For purposes of this either of the two actions listed in 2.a. calculation, the period of interruption may above, subject to all applicable limits. not ex rend beyond the "period or c. We will also pay the reasonable and restoration.'· necessmy expenses you incur to perforn1 The number indicated in the Declarations either of the two actions desc1ibed in 2.a. will be multiplied by the ADV as above. We will pay for such expenses to determined above. The result will be used the extent: that they do not exceed the as the applicable deductible. amount recoverable from salvage. d. If a Brands and Labels Limit is shown on EXAl\lPLE the Declarations. we will not pay more than Business is interrupted, partially or bcludt'~ cnpy1ight mat<:-rial nf Insnrnntt' Services Offict\ tnc. with its p~nnissh)n. 8 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 76 of 197 the indicated amount for coverage under Step 1: $100,000 / $200,000 = .5 this Condition. Step 2: $40,000 x.5 = $20,000 3. Coinsurance - Business Income Coverage Step 3: $20,000 - $5,000 °= $15,000 a. Unless otherwise shown in lhe The total "business income·• Joss recovery, after Declarations, Business Income coverage is deductible, would be $15,000. For the subject to coinsurance. This means that we remainder, you will either have to rely on other will not pay the full amount of any insurance or absorb the loss yourself. ''business income'' Joss if the "business income actual annual value·• is greater than . We will also charge you an additional premium the "business income estimated annual in recognition of the "business income actual value" at the affected location at the time or annual value.'' the "accident.'' Instead, \Ve will determine EXAMPLE 2 (Adequate insurance) the most we will pay using the following When: steps: The "business income actual annual value" at (1) Divide the "business income the location of loss at the time of the ''accident" estimated annual value" by·the is $200,000. "business income actual annual The "business income estimated annual value'' value" at the time of the ''accident"; shown in the Declarations for the location of (2) Multiply the total amount of the loss is $200,000. covered loss of "business income" The actual loss of "business income" resulting by the amount detennined in from the "accident" is $40,000. paragraph (.l) above; The Business Income limit is SJ 00,000. (3) Subtract the applicable deductible The Business Income deductible is $5,000. from lhe amount delem1ined in paragraph (2) above; Step l: S200,000 / $200,000 = l TI1e resulting amount, or the Business Step 2: $40,000 x 1 = $40,000 Income Limit, whichever is less, is the most Step 3: $40,000 - $5,000 = $35,000 we will pay. For the remainder, you will The total "business income" loss recovery, after either have to rely on other insurance or deductible, would be $35.000. absorb the loss yourself. 4. Coinsurance -- Coverages other than Business b. Coinsurance applies separately to each Income insured location. Coverages other than Business Income may be c. If you report a single "business income subject to coinsurance if so indicated in the estimated annual value" for more than one Declarations. 1f a Coinsurance percentage is location, v,ithout providing information on shown in the Declarations, the following how that amount should be distributed condition applies. among the locations, we will distribute the a. \Ve will not pay the full amount of any loss amount evenly among all applicable if the value of the property subject to the locations. coverage at the time of the ''accident" times EXAMPLE 1 (Underinsunmce) the Coinsurance percentage shown for it in When: the Declarations is greater than the The "business income actmil annual value'· at applicable limit. the location ofloss at the time of the '"accident'' Instead, we will dclennine the most we will is $200.000. pay using the following steps: The "business income estimated annual value" ( 1) Multiply the value of the property shown in the Declarations frir the location of subject lo the coverage at the Lime of loss is S!00,000. the ''accident" by the Coinsurance The actual loss of'·husiness income" resulting percentage; from the "accident" is S40,000. (2) Divide the applicable limit by the The Business Jncome Limit is SI 00,000. amount dcterrnined in step ( l ); The Business Income deductible is $5.000. (3) Multiply the total amount of loss. before the application of any ln1.."lude~ cnpy1ig]H llHlterial of lnsHranc.." Services O_ffic<.\ lne. with its permission. 9 of 18 Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20 Page 77 of 197 deductible, by the amount control. When we do this, it will be at our determined in step (2);'and expense. (4) Subtract the deductible from the 6. Duties in the Event of Loss or Damage amount determined in step (3). You must see that the following are done in the We will pay the amount determined in step event of loss or damage: (4) or the applicable limit, whichever is a. Give us a prompt notice of the loss or less. For the remainder, you will e.ither have damage, including a description of the to rely on other insurance or absorb the loss property involved. yourself. h. You must reduce ymir loss, damage or · b. Coinsurance applies separately to each expense, if possible, by: insured location. ( 1) Protecting property from further EXA.MPLE 1 (Undcrinsurancc) damage. We will not pay for your When: failure to protect property, as stated The actual value of·'perishable goods'' at the in Exclusion B.1.g.; location ofloss at the time of the "accident" is (2) Resuming business, partially or $200,000. completely at the location ofloss or The Perishable Goods limit is S 100,000 ((_l! 80% at another location; coinsurance. (3) Making up lost business within a The loss under Perishable Goods coverage reasonable amount of time. This resulting from the "accident" is $60,000. includes working extra time or overtime at the location ofloss or at The Perishable Goods deductible is $5,000. another location. The reasonable Step 1: $200,000 x 80% = Sl60,000 amount of time does not necessarily Step 2: SlO0,000iS160,000 = .625 end when the operations are Step 3: $60,000 x .625 = $37500 resumed; Step 4: $37500 - $5,000 = $32,500 (4) Using merchandise or other property The total Perishable Goods loss recovery. afi:er available to you; deductible, would be $32,500. For the (5) Using the property or services of remainder, you will either have to rely on other others; and insurance or absorb the loss yourself. (6) Salvaging the damaged property. EXr-\MPLE 2 (Adequate insurance) C. Allow us a reasonable time and opportunity When: to examine the property and premises The actual value of"perishable goods" at the before repair or replacement is undertaken location of loss at the time ofrhe "accident" is or physical evidence of the "accident" is $100.000. removed. But you must take whatever measures are necessary for protection from The Perishable Goods limit is SJ 00,000 @. 80% further damage. comsurance. d. Make no statement that will assume any The loss under Perishable Goods coverage obligation or admit any liability, for any resulting from the "accident'' is $6(1,000. loss, damage or expense for which we may The Perishable (ioods deducrihle is $5,000. be liable, without our consent. Step l: S l 00,000 x 80'% = $80.000 Promptly send us any legal papers or Step 2: S l 00,000/SSO.000 ""' i .25 notices received concerning the loss, Coinsurance does not apply. damage or expense. Step 3: $60,000 - S5,000 = $55,000 r. As often as may be reasonably required, The total Perishable Goods loss recovery, after permit us to inspect your property, premises deductible. would he $55,000. and records. Also permit us to take samples of damaged and undamaged property for 5. Defense inspection, testing and analysis, and permit We have the right. but are not obligated, to us to make copies from your books and defend you against ~uits arising from claims of records. owners of prnpeny in your care, custody or ln1.:ludc~ copy1ight material of Insurance Services Office. he. with its pe.1n1ission. 10 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 78 of 197 If requested, permit· us to examine you and under this Condition. any of your agents, employees and 8. Proving Your Loss representatives under oath. We may It is your responsibility, at your own expense, to examine any insured under oath while not provide documentation to us: in the presence of any other insured. Such a. Demonstrating that the loss, damage or examination: expense is the result of an "accident" (1) May be at any time reasonably covered l!nder this Equipment Breakdown required; Coverage; and (2) May be about any matter relating to b. Calculating the dollar amount of the loss, this insurance, your loss, damage or damage and expense that you claim is expense, or your claim, including, covered. but not limited to, your books and Your responsibility in 8.a. above is without records; and regard to whether or not the possible "accident" (3) May be recorded by us by any occurred at your premises or involved your methods we choose. equipment. h. Send us a signed, sworn proof of loss 9. Salvage and Recoveries containing the information we request. You When. in connection with any loss under this must do this within 60 days after our Equip~ent Breakdown Coverage, any salvage or request. recovery is received after the pa)-111ent for such i. Cooperate with us in the investigation and loss. the amount of the loss shall be refigured on settlement of the claim. the basis on which it would have been settled 7. Errors and Omissions had the amount of salvage or recovery been a. We will pay your loss covered by this known at the time the loss was originally Equipment Breakdown coverage if such determined. Anv amounts thus found to be due loss .is othe1wise not payable solely because either party fro1~1 the other shall be paid of any of the following: promptly. (1) Any error or unintentional omission 10. Valuation in the description or location of We will determine the value of"covered property as insured under this properly" as follows: policy; a. Except as specified otherwise, our payment (2) Any failure through error to include for damaged "covered property" ,vill be the any premises owned or occupied by smallest of: you at the inception of this policy; or (l) The cost to repair the damaged (3) Anv eITor or unintentional omission property; by you that results in cancellation of (2) The cost to replace the damaged any premises insured under this property on the same site; or policy. (3) The amount vou actually spend that b. No coverage is provided as a result of any is necessary to repair or replace the error or unintentional omission by you in damaged property. the reporting of values or the coverage you b. The amount of our payment will be based requested. on the most cost-effective means to replace C. It is a condition of this coverage that such the function, capacity and remaining useful errors or unintemional omissions shall be life of the damaged property. This may reported and corrected when discovered. include the use of generic, used or The policy premium will be adjusted reconditioned parts, equipment or property. accordingly to retle..:t the date the premises c. Except as described ind. bclo,v, you must should have been added bad no eJTor or pay the extra cost ofreplacing damaged omission occurred. propeny with property of a better kind or ]fan Errors and Omissions Limit is shown cl. quality or of a different size or capacity. on the Declarations, we will not pay ml>rc cl. Environmental, Safety and Efficiency than the indicated amount for coverage Improvements lncludl"s copyright material nf Insurance Seviees Office. Lnc. with its p~nnission. I I of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 79 of 197 If"covered equipment" requires "media" will be valued on the following replacement dnc to an "accident,'' we will basis: pay your additional cost to replace wilh (l) For mass-produced and equipment that we agree is better for the commercially available software, at environment, safer for people or more the replacement cost. energy efficient than the equipment being (2) For all other "data" and "media,'' at replaced, subject to the following the cost of blank "media'' for conditions: reproducing the records. We will not ( 1) We will not pay more than l 50'% of pay for "data" representing financial what the cost vmuld have been to records based on the face value of replace with like kind and quality: such records. (2) We will not pay to increase the size h. Air conditioning or refrigeration equipment or capacity of the equipment; that utilizes a refrigerant containing CFC (3) This provision only applies to (chlorofluorocarbon) substances will be Property Damage coverage; valued at the cost to do the least expensive ( 4) Tb.is provision does not increase any of the following: of the applicable limits; (1) Repair or replace the damaged (5) This provision does not apply to any property and replace any lost CFC property valued on an Actual Cash refrigerant; Value basis; and (2) Repair the damaged property, (6) This provision does not apply to the retrofit the system to accept a non replacement of component parts. CFC refrigerant and charge the system with a non-CFC refrigerant; e. The following property will be valued on an Actual Cash Value basis: or (3) Replace the system with one using a ( l) Any property that does not currently non-CFC refrigerant. serve a useful or necessmy function for you; In determining the least expensive option, we will include any associated Business (2) Any ·'covered property" that you do not repair or replace within 24 Income or Extra Expense loss. If option (2) or (3) is more expensive than (1), but you months after the dare of the "accident"; and wish to retrofit or replace anyway, we will cons.ider this better for the environment and (3) Any "covered property'' for which therefore eligible for valuation under Actual Cash Value coverage is paragraph d., Environmental, Safety and specified in the Declarations. Efficiency Improvements. In such case, .Actual Cash Value includes deductions for E.10.d.(1) is amended to read: "We will not depreciation. pay more than 125% of what the cost f. If any one of the fi)llowing conditions is would have been to repair or replace with met, property held for sale by you will be like kind and quality." valued at the sales price as ifno loss or F. ADDITIONAL CONDITIONS damage had occmTed, less any discounts The following conditions apply in addition to the and expenses that otherw.isc wonld lwvc Loss Conditions: applied: l. A,dditional Insured ( l ) The property was manufactured by lf a person or organization is designated in this you~ Equipment Breakdo\\-11 Coverage as an (2) The sales price of the property is additional insured, we will consider them to be less than the replacement cost of the an .insured under this Equipment Breakdown propeny: or Coverage only to the extent of their interest in (3) Youan:unabletorcplaccthe the '\:ovcred property.'' property before its anticipmed sale. 2. Bankruptcy g. Except as specifically provided for under The bankruptcy or insolvency of you or your Data Restoration coverage. "da1a"' and Includes copyright material nf lns1l!'ance s~rvict:.s Offict\ lnc. with its pcn11ission. 12 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 80 of 197 estate will not relieve vou or us or anv ( l) This Equipment Breakdown obligation under this Equipment Bre~kdown Coverage; Coverage. (2) The '"covered property"; 3. Cancellation (3) Your interest in the "covered a. The first Named Insured shown in the property''; or Declarations may cancel this policy by ( 4) A claim under this Equipment mailing or delivering to us advance \vTitten Breakdown Coverage. notice of cancellation. 6. Examination of Your Books and Records b. We may cancel this policy by mailing or We may examine and audit your books and delivering to the first Named Insured records as they relate to this policy at any time written notice or cancellation at kast: during the policy period and up to three years ( 1) l O clays before the effective date of afterward. cancellation if we cancel for 7. Inspections and Surveys nonpayment of premium; or a. We have the right to: (2) 30 days before the effective date or cancellation ifwe cancel for any other ( l) Make inspections and surveys at any reason. time; c. We will mail or deliver our notice to the (2) Give you reports on the conditions we first Named Insured's last mailing address find;and known to us. (3) Recommend changes. cl. Notice of cancellation will state the b. We are not obligated to make any effective date of cancellation. The policy inspections, surveys, reports or period \Vill end on that date. recommendations and any such actions e. If this policy is canceled, we will send the relate only to irisurability and the premiums first Named Insured any premium refund to be charged. We do not make safetv due. If we cancel, the refund will be pro inspections. We do not undertake to - rata. Uthe first Named Insured cancels. the perfonn the duty of any person or refund may be less than pro rata. The organization to provide for the health or cancellation will be effective even ifwe safety of workers or the public. And we do have not made or offered a refund. not warrant that conditions: f. If notice is mailed, proof of mailing will be (1) Are safe or healthful; or sufficient proof of notice. (2) Comply with laws. regulations, codes 4. Changes or standards. This policy contains all the agreemenls between c. Paragraphs a. and b. of this condition apply you and us concerning the insurance affcmlecl. not only to us, but also to any rating, The firsl Named Insured shown in the advisory, rate service or similar Declarations is authorized to make changes in organization which makes insurance the terms of this policy with our consent. This inspections, surveys, reports or policy's tenns can be amended or waived onlv recommendations. by endorsement issued by us and made a part-of 8. Jurisdictional Inspections this policy. Jt is your responsibility to comply with any state 5. Concealment, .Misrepresentation or Fraud or municipal boiler and pressure vessel We will not pay for any loss and coverage will regulations. If any '·covered equipment" that is be void if you or any additional insured ;t any ''covered property'' requires inspection to time: comply with such regulations, at your option we agree to perform such inspection. a. Intentionally cause or allow lt,ss. damage or expense in order to collect on insurance: 9. Legal Action Against Us or No one may bring a legal action against us b. Intentionally conceal or 1nisrepresenl a under this Equipment Breakdcm-11 Coverage material f;ict concerning: unless: lnL'!udc:; copyright n1ah..'Tial or lnsurarn.!L' Servirc.s Ortic<.\ Inc. \\'ith its pen11issit)ll. 13 of 18 Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20 Page 81 of 197 a. There has been full compliance with all the equipment" to you and each mortgage tenns of this Equipment Breakdown holder shown in the Declarations in their Coverage; and order of precedence, as interests in the b. ·n1e action is brought within two years alter ·'covered property" may appear. the date of the "accident" or C. The mortgage holder has the right to c. We agree in writing that you have an receive loss payment even .if the mortgage obligation to pay for damage to "covered holder has started foreclosure or similar property'' of others or until the amount of action on the "covered property.'' that obligation has been detennined by d. lfwe deny your claim because of your acts final judgment or arbitration award. No one or because you have failed to comply with has the right under this policy to bring us the terms of this Equipment Breakdown into an action to determine your liability. Coverage, the mortgage holder will still Hl. Liberalization have the right ro receive loss payment, provided the mortgage holder does all of Ifwe adopt any standard form revision for the following: general use that would broaden the coverage under this Equipment Breakdmvn Coverage ( 1) Pays any premium due under this without additional premium, the broadened Equipment Breakdown Coverage at coverage will apply to this Equipment our request if you have failed to do Breakdown Coverage commencing on the date so; that such revision becomes effective in the (2) Submits a signed, sworn proof of loss jurisdiction where the ''accident'" occurs. within 60 days after receiving notice 11. Loss Payable from us of your failure to do so; a. We \:vill pay you and the loss payee shm.,11 (3) Has notified us of any change in in the Declarations for loss covered by this ownership or material change in risk Equipment Breakdown Coverage, as knmm to the mortgage holder; and interests may appear. The insurance covers (4) Has complied witli. all other terms the interest of the loss payee unless the loss and conditions of this Policy. results from conversion, secretion or All of the te1ms of this Equipment embezzlement on your part or on the part Breakdown Coverage will then apply of the loss payee. directly to the mortgage holder. b. We may cancel the policy as allowed by the If we pay the mortgage holder for any loss Cancellation Condition. Cancellation ends and deny payment to you because of your this agreement as to the loss payee"s acts or because you have failed to comply interest. Ifwe cancel, we ,vill mail you and with the tem:is of this Equipment the loss payee the same advance notice. Breakdmv11 Coverage: c. If\:ve make any payment to the loss payee. ( l) The mmtgage holder's right under we '>Nill obtain their rights against any other the mortgage will be transfened to parry. us to the extent of the amount we 12. Maintaining Your Properly and Equipment pay; and It is your responsibility to appropriately (2) The mo1tgage holder's right to maintain your property and equipment. \Ve will recover the full amount of the not pay your costs to maintain, operate, protect mortgage holder's claim will not be or enhance your property or equipment, even .if impaired. such costs are to comply with onr At our option, we may pay to the mortgage recommendations or prevent loss. damage or holder the whole principal on the mmtgage expense that would be covered under this plus any accrued interest. In this event, policy. your mortgage and note will be transferred 13. i\fortgage Holders to us and you will pay your remaining a. The tern1 mortgage holder includes trustee. mortgage debt to us. b. We will pay for dir..:ct damage lo '·covered f. lf,ve cancel this policy, we will give property" clue to an ''accident'' to ·'covered wrinen notice to the mortgage holder at least: Include~ Ct)pyright n1ah.~rial of Insurance Service:s Office. inc. wirh its pc:nnission. i4 of 18 Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20 Page 82 of 197 (l) l O days before the effective date of property ,vith the owner of the property. cancellation ifwc caned for your Settlement with mmers of that property will nonpayment of premium; or satisfy any claim of yours. (2) 30 days before the effective date of 18. Suspension cancellation if we cancel for any Whenever "covered equipment" is found to be other reason. in, or exposed to, a dangerous condition, any of g. lfwe elect not to renew this policy, we will our representatives may immediately suspend give written notice to the mortgage holder the insurance against loss from an "accident'' to at least l O days before the expiration dare that "covered equipment." This can be done by of this policy. delivering or mailing a written notice of h. Jfwe suspend coverage, it \.vill also be suspension to: suspended as respects the mortgage holder. a. Your last kl10\,TI address; or We will give\.\-T.itten notice of the· b. The address where the "covered suspension to the mortgage holder. equipment" is located. 14. Other Insurance Once suspended in this way, your insurance can If there is other insurance that applies to the be reinstated only by an endorsement for that same loss, damage or expense, this Equipment "covered equipment." Breakdown Coverage shall apply only as excess Jfwe suspend your insurance, you v,ill get a pro insurance after all other applicable insurance has rat a refund of premium for that "covered been exhausted. equipment'' for the period of suspension. But the 15. Policy Period, Coverage Territory suspension will be effective even ifwe have not Under this Equipment Breakdo\vn Coverage: yet made or offered a refund. a. The "accident" must occur during the 19. Transfer of Your Rights and Duties Under Policy Period, but expiration of the policy This Policy does not limit our liability. Your rights and duties under this policy may not b. The "accident" must occur within the be transferred without our \.\-Titten consent follo\.ving Coverage Territo1y: except in the case of death of an individual (1) The United States of America Named Insured. (including its te1Titories and If you die, your rights and duties will be possessions); transferred to your legal representative but only (2) Puerto Rico; and while acting within the scope of duties as your (3) Canada. legal representative. Until your legal representative is appointed, anyone having c. With respect to Off Premises Property proper temporary custody of your property will Damage coverage only, the ·'accident" may have your rights and duties but only with respect occur in any country except ,me in which to that property. the United States has imposed sanctions, embargoes or similar restrictions on the 20. Transfer of Rights of Recovery Against provision of insurance. Olhers to Us .l 6. Premiums If any person or organization to or for whom we make payment under this Equipment Breakdown The first Named Insured shown in the Coverage has rights to recover damages from Declarations: another, those rights are transferred to us to the a. ls responsible for the pay111enr of all extent of our pay1nent. That persotl" or premiums; and organization must do everything necessmy to b. Will be the payee for any return premiums secure our rights and must do nothing after loss we pay. to impair them. But you may waive your rights against another party in writing: 17. Privilege to Ad.just with Owner a. Prior to an "accident." In the event of loss, damage or expense involving pr,,perty of others in your rnre. b. After an "accident'· only if, at time of the custody or control, we have the right to selllc the ''ace ident, '' that party is one of the loss, damage or expense with respect to such following: Int.. 'lude~ copyright material r~r Insurance Sc-rvict:s Office~ rnc. with its pen11ission. 15 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 83 of 197 (1) Someone insured by this Policy; or following services within the building: heating, (2) A business firm: ventilating, air conditioning, electrical power, hot water, elevator or escalator services, natural (a) Owned or controlled by you; or gas service or communications. "Building (b) That owns or controls you. utilities" does not include personal property or G. DEFINITIONS equipment used in manufacturing or processing. 1. "Accident" 5. "Buried Vessels or Piping" means any piping a. ·'Accident'' is defined in A I .a. or vessel buried or encased in the earth, concrete b. None of the following is an ·'accident,'' or other material, whether above or below grade, however caused and without regard to or in an enclosure which does not allow access whether such condition or event is nrnmal for inspection and repair. and expected or unusual and unexpected: 6. "Business Income" means the sum of: (.I) Depletion, deterioration, mst, a. The Net Income (net profit or loss before corrosion, erosion, settling or wear income taxes) that would have been earned and tear; or incuJTed; and (2) Any gradually developing condition; b. Continuing nonnal and necessary operating (3) Any defect, programming error, expenses incuJTed, including employee programming limitation, computer payroll. virus, malicious code, loss of·'data," 7. "Business Income Actual Annual Value" loss of access, loss of use, loss of means the "business income" for the cuJTent functionality or other condition fiscal year that would have been earned had no within or involving "data" or "accident'' occurred. "media" of any kind; In calculating the "business income actual (4) Contamination by a ''hazardous annual value," we will take into account the substance"; or actual experience of your business before the (5) Misalignment, miscalibrarion, ·'accident" and the probable experience you tripping off-line, or any condition would have had without the "accident." which can be corrected by resetting. 8. "Business Income Estimated Annual Value'' tightening, adjusting or cleaning, or means the anticipated ·'business income" by the performance of maintenance. reported to us and shown in the Declarations. If 2. "Anchor Location'' means a location, operated no value is shown in the Declarations, the by others, upon which you depend to attract ''business income estimated annual value'' will customers to your location. An ''anchor be the most recent report of anticipated location" must have been open for business for at "business income" values on file \¥1th us. least six months prior to the "accident,'' and must 9. "Covered Equipment" be located within one mile of your location. a. "Covered Equipment" is defined in A. I .b. 3. "Boilers and Vessels" means: b. None of the following is "covered a. Boilers; equipment'': b. Steam piping; ( l) Structure, including but not limited to c. Piping that is part of a closed loop used to the structural portions of buildings and conduct heat from a boiler; towers, and scaffolding; d. Condensate tanks; and (2) Foundation: e. Unfired vessels which, during normal (3) Cabinet. compartment, conduit or usage, operate under vacuum or pressure, ductwork; other than the weight of contents. (4) Insulating or refracrory material; This term docs not appear elsewhere .in this (5) "Buried vessels or piping"; coverage form, but may appear in the (6) Wasre, drainage or sewer piping: Declarations. (7) Piping, valves or fittings forming a part 4. "Building Utilities" means '·covered of a sprinkler or fire suppression equipment" permanently mounted on or in a system; building and used to provide any or the Includt'S copyright matt'ria! of !nsuranct~ Services Of-I.ice. lne. \l'ith its pi..'nnissit)n. Jfiofl8 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 84 of 197 (8) Water piping that is not pan ofa closed (3) Engine-generators; loop used lo conduct heat or cooling (4) Fuel cells or other alternative electrical from a boiler or a refrigeration or air generating equipment; conditioning system; (5) Electrical transformers, switchgear and (9' ' ) ·'Vehicle'' or any equipment mounted power lines used to convey the on a "vehicle"; generated electricity; and ( I 0) Satellite, spacecraft or any equipment (6) Associated equipment necessary for the mounted on a satellite or spacecrafr; operation of any of the equipment listed (11) Dragline, excavation or construction in (1) through (5) above. equipment; b. "Electrical Generating Equipment" does (12)Equipment manufacmred by you for not mean: sale; or (l) Elevator or hoist motors that generate ( 13) ·'Data." electricity when releasing cable; or 10. "Covered Property" (2) Equipment intended to generate a. ·'Covered Property" means property that electricity solely on an emergency, you mvn or property that is in your care. back-up basis. custody or control arid for which you are This term does not appear elsewhere in this legally liable. Such property must be at a coverage form, but may appear in the location described in the Declarations Declarations. except as provided under Off Premises 13. "Extra Expense" means the additional cost you Property Damage coverage. incur to operate your business over and above b. None of the following is "covered the cost that you normally would have incurred property'': to operate your business during the same period (I) Accounts, bills, currency. deeds or had no "accident" occurred. other evidences of debt, money, notes 14. "Hazardous Substance" means any substance or securities; that is hazardous to health or has been declared (2) Finearts,jewelry, forsorprecious to be hazardous to health by a governmental stones; agency. (3) Precious metal, unless forming a part of 15. "Interruption of Service'' "covered equipment"; a. "Interruption of Service'' means a failure or (4) Animals; disrnption of the normal supply of any of (5) Contraband, or property in the course. the Covered Services listed in b. below, of illegal transportation or trade; when such failure or disrnption is caused by an "accident" to ·'covered equipment," (6) Land (including land on which the subject to the conditions listed in c. through propert)' is located). water, trees, f below. growing crops or lavms; or b. Covered Services arc electrical power, (7) Shrnbs or plants, unless held indoors waste disposal, air conditioning, for retail sale. refrigeration, heating, natural gas. 11. "Data" means information or instructions stored compressed air, water, steam, internet in digital code capable of being processed by access, telecommunications services, wide machinery. area networks and data transmission. J2. "Electrical Generating Equipment" c. The '·covered equipment" must either be: a. ·'Electrical Generating Equipment'" means (1) Owned by a company with whom you equipment which converts any other form have a contract to supply you with one of energy into electricity. This includes, but of the Covered Services; or is not limited to, the following: (2) Used to supply you with one of the (1) Boilers used primarily to provide steam Covered Services and located within for one or more turbine-generator units; one mile of a location described in the (2) Turbine-generators (including steam. Declarations. gas, water or wind turbines): d. lf a Service Interruption Distance Include:; copyright material of Insurance Servil'es Office. Inc. with its pcnnissit)n. 17 of 18 Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20 Page 85 of 197 Limitation is indicated in the Declarations, payroll, employee benefits directly related to the ·'covered equipment'' suffering the payroll, FICA payments you pay, union dues "accident" must be located within the you pay and workers compensation premiums. indicated distance of any location described "Ordinary payroll" docs not include pensions or in the Declarations. directors fees. Unless otherwise shm,11 in the This term does not appear else,vhere in this Declarations. no failure or dismption of coverage form, but may appear in the service will be considered to qualify as an Declarations. "interrnption of service" until the failure or 20. "Period of Restoration" means the period of disruption exceeds 24 hours immediately time that begins at the time of the ·'accident" and following the ·'accident." continues until the earlier of: f. ··'I nte1Tupt1011. o1, serviceJ . ,. c! oes not· me. 1m le a. The date the physical damage to "covered any failure or disruption, whether or not equipment" is repaired or replaced; or arising from or involving an ·'accident,'' in b. The date on which such damage could have which a supplier could have continued to provide service to the location but chose been repaired or replaced with the exercise for any reason to reduce or discontinue of due diligence and dispatch, service. plus the number of days, if any, shown in the 16. "Interruption of Supply" Declarations for Extended Period of Restoration. a. "lntenuption of Supply" means a failure or As respects Civil Authority coverage only, disruption of the 1101mal supply of any of '"period of restoration" means the period of time the Covered Contingencies listed below, that begins as of the time access is prohibited by when such failure or disruption is caused action of the civil authority and continues until by an ·'accident" to "covered equipment" the earlier of: that is located at a Contingent Business ta) 21 days thereafter; or Income supplier or receiver location (b) The date access is restored. indicated in the Declarations. lf no 21. "Perishable Goods" means any ·'covered Contingent Business Income supplier or property'" subject to deterioration or impairment receiver location is indicated .in the as a result of a change of conditions, including Declarations, the "covered equipment" but not limited to temperature, humidity or must be owned by a supplier from whom pressure. I you have received the Covered 22. "J>roduction l\1achinery" means any machine Contingency for at least six months prior to or apparatus that processes or produces a the "accident" or a receiver to whom you product intended for eventual sale. This includes have supplied the Covered Contingency for all component parts of such machine or at least six months prior to the ·'accident." apparatus and any other equipment used b. Covered Contingencies arc raw materials, exclusively with such machine or apparatus. intennediate products, finished products, However, '"production machinery" does not packaging materials and product processing mean any boiler, or fired or unfired pressure services. vessel. 17. "Media" means material on which ''data" is This term does not appear elsewhere in this recorded, such as magnetic tapes, hard disks, coverage form, but may appear in the optical disks or floppy disks. Declarations. 18. "One Accident" means all "accidents'' 23. "Spoilage'' means any detrimental change in occuITing at the same time from the same event. state. This includes but is not limited to thawing If an "accident" causes other "accidents." all will of frozen goods, wanning of refrigerated goods, be considered ·'one accident.'' freezing of fresh goods, solidification ofliquicl 19. "Ordinary Payroll'' means the Payroll or molten material and chemical reactions to Expenses associated with all employees other material in process. than executives, department managers and 24. "Vehicle'' means any machine or apparat11s that employees under contract. is used for transportation or moves under its 0\\11 As used above, Payroll Expenses means all power. ·'Vehicle'· includes, but is not limited to, bdude::; copyright material or fnsurancl' Servic~s Offict', Inc. with its pt.:~nnission. 18 of I 8 Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20 Page 86 of 197 car, truck, bus, trailer, train, aircran:, walerc.rnft, forklift, bulldozer, tractor or harvester. Hov,:ever. any property that is ~tationary, permanently installed at a covered location and that receives electrical pov.;cr from an external power source will not be considered a ··vehicle.'' lndui.ks t;opy1ight material of ln:.urancc Scrvict:s Officc.:·. lnc. with its permission. 19 of 18 Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20 Page 87 of 197 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 88 of 197 655 N. Central J\ve .. Suite 2100 Glendak, CA 91203 t: 813-245-1010 f: 813-245-1750 License# OD44433 Insurance Services Friday, Janumy l 0, 2020 ATTENTION: Mortgage Holder/Servicing Agents and/or Additional Interests: PLEASE DO NOT DISCARD ANY PART OF THESE DOCUMENTS Policy numbers are listed on the Appendix not on the Evidence oflnsu.rance RE: CIBA Insurance Program 3/31/2019 - 3/31/2021 The enclosed evidence of insurance, together with the attached information confirms that insurance coverage is provided for the subject property under the CIBA Industrial/Residential Property Insurance Program, and is being sent to you at the request of CIBA's insured. This evidence of insurance reflects your insurab]e interest in the subject property as confirmed by the Lenders Loss Payable Endorsement Form 438FUNS, or, if applicable, the Additional Insured Mortgagee, Assignee, or Receiver Endorsement included therein. All policy information will be available at '"'"w.cibaservices.com under the Program Participant Resources link no later than query.StartDate. Use the Property I.D. to obtain the policy information. If you have any questions regarding this insurance, please do not hesitate to contact our Customer Service. CIBA Insurance Services Customer Service p: (818) 245-1010 f: (866) 804-8489 f: (818) 245-1750 e: .QJ sJQD~ rv i ce.Cg;.,,::ihas.e.uic_es corn Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 89 of 197 ACORD,, EVIDENCE OF COMMERCIAL PROPERTY INSURANCE DATE (MMiDD/YYYY) • I 01/10/2020 THIS IS EVIDENCE TliAT INSURANCE AS IDENTIFIED BELOW HAS BEEN ISSUED, IS IN FORCE AND CONVEYS ALL THE RIGHTS AND PRIVILEGES AFFORDED UNDER THE POLICY. PRODUCER NAME I PHONE COMPANY NAME AND ADDRESS I NAICNO: Argo lnsumr:ce Brokers (!ntegrc US.A. Inc.) 3520 rnrch STreel, SoiK, 200 REFER TO APPENDIX(ES) USTED .4ND ATTACHED HERETO FOR SCHEDULE Newport Beach, Ct\ 92660 OF PARTIC!PATiNG INSURANCE COMPAN!ES AND POUCY NUMBERS. Uce:nse #: OE77964 .i\PPENDIX(ES} c,~N ALSO BE FOUND AT VVVVV\/.CIB.£\SERVICES.COM: Phone: (714) 701-0658 Fax: {714) 701-0696 SP-E && PL CODE: 500138 / ARGG!B I SUB CODE: AIN: 45629P!644 Broadway LLC IF MULTIPLE COMPANIES, COMPLETE SEPARATE FORM FOR EACH NAMED INSURED AND ADDRESS Hornc,State: CA LOAN NUMBER POLICY NUMBER 64 4 Broadway LLC 030314492 AIN45629 clo Chris VVright 985 Moraga Road, Suite 214 EFFECTIVE DATE EXPIRATION DATE CONW,UED UNTIL Lafayette, CA 94549 01/01/2020 01i01/2021 □ TERMINATED IF CHECKED ADDITIONAL NAMED INSURED(S) THIS REPLACES PRIOR EVIDENCE DATED: PROPERTY INFORMATION (Use additional sheets if more space is required) LOCATION DESCRIPTION PID #: P00077581 660 Broadway S!reet, San Francisco, CA 94 '!33 PER SCHEDULE OF LOCATIONS ATTACHED. LOCATIONS SUBJECT TO ENDORSEMENTS AS ATTACHED. COVERAGE INFORMATION C/\USE OF LOSS FORM f l BASIC [ l BROAD Ix] SPECIAL r 1 OTHER COfv1MERCIAL PROPERTY COVERAGE AMOUNT OF !i..JSUfv">,NCE: $6,393,947 per occurrence DED: SS,000 YES NO BUSINESS INCOf111E / RENTAL VALUE (ind Extra Expense) X !fYES. Ulvl!T: INCLUDED Ix] Actuaf Loss sustained 24 # of months BLP..NKET COVERAGE X !f YES, indicate amount of insurance on properties idE:ntifl&d above: S TERRORISM COVERAGE X /\Hach signed Disdosure Not,ce ! DEC iS COVER/\GE PROVIDED FOR "CERTIFIED ll.CTS:: ONLY? X If YES, SUB ur.. irr: DED: iS COVERAGE A STAND ALONE POLICY? X :; YES, LIMiT: REFER TO APPENDIX OED: S5.000 COES COVERAGE INCLUDE D()MEST!C: TERROmsr!i1? X if YES. SUB UMJT· INCLUDED DED: !NCLUDED COVERr'\GE FOR MOLD X !f YES, LIMIT: $10,000 DED: S5.000 MOLD EXCLUSlON {If "YES". specify organizations's form used) X REPLACEMENT COST X AGREED AMOUNT X COINSURJ\NCE X :fYES. % EQU!Pf,.t;ENT BRE/~KDOVvN {If 1~pp!icab!e) X !f YES, LIM!T: $7,500.000 OED: S5.CQO LAW AMD ORDINANCE - Coverage for loss re undarnag<::d portion of building X if YES, LIMIT: INCLUDED DED: S5.000 - Derno!itlon Ccst5 X !fYES, LJM!T: REFER TO ENDORSEMENT OED: $5,000 - !ncr. Cost of Construction LIM!T: REFER TO ENDORSEMENT DED: S5,000 E.'\RTHQUA.KE (if r''-pp!icable) X !fYES. UM!T: DED: FLOOD (if Applicable} X !fYES, LIM:T: DED: V\fiND ! HAIL (if Separate Policy) if YES, LIM:T: OED: REFER TO ENDORSEMENT PERr.,,1!SSION TO \NAIVE SUBROGF.TtOH PRiOR TO LOSS X REMARKS - Including Special Conditions {Use additional sheets if more space is required) Business Income/ Rental Value (including Extra Expense): EXTENDED PERIOD OF INDEl\llNITY IS 180 DAYS, UNLESS AMENDED BY ENDORSEMENT ATTACHED TO THIS EVIDENCE. REFER TO ATTACHED REMARKS SECTION CA NC ELLA TION 1 5 0 1 ~:~~;~~~:-~T~~~;J~~/~7~:.i;~ J6'~1:~E~~~r;iEr~~:~~~;~~~~ ~~.~~ F~it~·~;;;;v~~~~~:,~o;}t~~ ;i;: ~~0~1~7c~4~~6:~;~_;!~:~i;r~~~sT~~r~i1~~l~\1;~·1i~~1~;;v:6~~~-~Ei.J:~c~~ ~!~l\ THE ll'iTEREST. IN r'\CCCIRD!\NCE \i\./iTH THE POUCY PRO\/l'.-310NS OR /\S REQUIRED BY LNN. ADDITIONAL INTEREST NAME AND ADDRESS LENDER SERVICING AGENT NAME AND ADDRESS \Neils Fargo Bank. NIA as trustee for DewschE: MortgagE. COMf,:1 2018-COR3. ii;,, succE:ssors and/or assigns de Midland Loan St:rvices, ;.; PNC Real Estate Business P.O. Box 259S8 S:awnE:e Missi,1n, KS 002:5-5968 X MORTG.M2,EE X I428BFUNS ,,pp!ies AUTHORIZED REPRESENTATIVE X LOSS PAYEE ACORD 28 (2003ii0) (c) ACORD CORPORATION 2003 Page 1 of 2 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 90 of 197 SCHEDULE OF LOCATIONS: • PROPERTY TYPE CONSTRUCTION TYPE REAL BUSINESS YEAR BUILT NUM OF BUILDINGS PROPERTY LOSS OF PERSONAL PARKING LOC/BLDG ADDRESS/DESCRIPTION SPRINKLERS NUM OF STORIES VALUE INCOME VALUE PROPERTY VALUE VALUE TIV Primary 660 Broad·way Stree! r-.,1:xed Use - Hab iSO 1 - Frame $4,331,447 $2.062,500 $0 so $6,393,947 San Franosco. GA. 94133 1970 001 Btdgs + 000 Par'~ None 002 firs + 000 Bsrnt + 000 Park ENDORSEMENTS APPLICABLE (refer to full endorsement wording attached hereto): IN ADDITION TO THE MASTER POLICY ENDORSEMENTS, THE FOLLOWING ADDITIONAL ENDORSEMENTS APPLY TO THIS LOCATION (IF APPLICABLE): Effective Date: Removal Date: Endorsement No.: Endorsement Name: 01/01/2020 01 EPl-365 CO 03'19 EXTENDED PERIOD OF lNDEMNJTY 365 DAYS 01/01/2020 01 DCl-3.0M U 0319 DEMOLITION. ICC. INCREASED LOSS OF INCOME DUE TO BUILDiNG ORDINANCE COMBINED SINGLE SUB-LIMIT 01/01/2020 01 PRS-ST1 U 0319 PROTECTiVE S.A.FEGUARDS ENDORSEt111ENT 01101/2020 01 BRC-100 Li 0319 REAL PROPERTY REPLACEMENT COST UMITATION pOC% of Scheduled Value) 01/01/2020 01 rv1EP-025 OT 0319 MiNIMUM Ei'.RNED PREMIUM TAXABLE PROPERTY PREMIUM: $22.138.00 SURPLUS LINES TAXES: $632.47 NON-TAXABLE PROPERTY PREMIUM: S71.00 STAMPING FEES: $45.50 TAXABLE PROPERTY TERRORISM: $611.00 FIRE MARSHALL TAX: $0.00 NON-TAXABLE PROPERTY TERRORISM: S0.00 STATE SURCHARGES: $0.00 ADD'L STATEiMUNICIPAL CHARGES: $0.00 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 91 of 197 4 TO BE ATTACHED TO AND FOR\! PART OFTIJE EVlDENCE OR CERTIFICAT)!, vF INSURANCE ISSUED TO: 644 Broadway LLC 660 Broadway Street San Francisco CA 94133 Applicable To: AIN/PID Number: 45629P/PID #: P00077581 Property Policy Number: Refer to Appendix 01 EPI-365 CO 0319 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ JT CAREFFLLY. EXTENDED PERIOD OF JNDE1\,1NJTY 365 DAYS In consideration of the premium charged, it is agreed that follovving coverage change applies, but only to coverage provided at insured locations identified by "Property Identification Numbers" where the Declarations Page or Evidence of Commercial Property Insurance issued to the Named Insured by CIBA Insurance Services states that this endorsement applies. Section 6. COVERAGE, subsection b. Loss of Income, paragraph (7) E>-1:ended Period of Indemnity in the All Risk Property Coverage Form is deleted entirely and replaced by: (7) Extended Period of Indemnity This policy covers the actual loss of income sustained during the period that begins on the date the property is actually repaired, rebuilt or replaced and ends on the earlier of: (a) The date the property could, with due diligence and dispatch, be re-leased on the same or equivalent rental terms and conditions that existed prior to such loss or damage; (b) 365days after the date the property is actually repaired, rebuilt or replaced. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED Countersigned Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 92 of 197 TO BE XfTACHED TO Ai\l.l Applicable To: AIN/PID Number: 45629P/PID :/-/: P00077581 Property Policy Number: Refer to Appendix 01 DCl-3,0M LI 0319 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DEMOLITION. ICC, INCREASED LOSS OF INCOl\fE DUE TO BUILDING ORDINANCE C0!\1BINED SINGl,E SUB-lJl\UT In consideration of a premium charged, it is agreed that following coverage change applies, but only to coverage provided at insured locations identified by "Property Identification Numbers" where the Declarations Page or Evidence of Commercial Property Insurance issued to the Named Insured by CIBA Insurance Services states that this endorsement applies. It is hereby agreed that all coverage for building ordinance coverages: B, Demolition C. Increased Cost of Construction D. Increased Loss of Income are subject to a single, combined sublimit of $3,000,000 for the property to which this endorsement applies, ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED Countersigned Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 93 of 197 TO BE ATTACHED TO AND.lVl PART OF THE EVIDENCE OR CERTlFICA'-F INSURANCE .ISSUED TO: 644 Broadwav LLC "' 660 Broadway Street San Francisco CA 94133 Applicable To: AIN/PID Number: 45629P/PID #: P00077581 Property Policy Number: Refer to Appendix 01 PRS-STl LI 0319 THIS ENDORSEMENT CHANGES THE POlJCY. PLEASE READ rr CAREFULLY. PROTECTIVE SAFEGUARDS ENDORSE1VJENT In consideration of a premium charged, it is agreed that following coverage change applies, but only to coverage provided at insured locations identified by "Property Identification Numbers" where the Declarations Page or Evidence of Commercial Property Insurance issued to the Named Insured by CIBA Insurance Services states that this endorsement applies. This insurance is provided based on the protection of the premises by the protective safeguard system or systems indicated below. It is a condition of this insurance that the Named Insured shall exercise due diligence in maintaining in complete working order all equipment and services pertaining to the system(s) which are under the control of the Named Insured, including any special maintenance or service requirements indicated below. It is also a condition of this insurance that the Named Insured shall give immediate notice to CIBA Insurance Services of any impairment in or suspension of any equipment or service pertaining to the system(s) within the knowledge of the Named Insured. An "X" next to a paragraph below indicates that the paragraph is included in this endorsement. 1. Automatic Sprinkler System It is a condition of this insurance that the Insured Associate shall have the automatic sprinkler system serviced by an independent contractor licensed to service and maintain automatic sprinkler systems in the state in which the premises are located. It is also a condition of this insurance that the Insured Associate shall have the automatic sprinkler system inspected and tested at least once per year by an independent contractor licensed to inspect and test automatic sprinkler systems in the state in which the premises are located. 2. Automatic Fire Alarm, reporting to a public or private fire alarm station 3. Activated and operational Central Station Burglar Alarm reporting to a public or private burglar alarm station. Alarm must be in the "on" position during all non-working hours and/or whenever the insured associate's premises are unoccupied. x 4. Automatic Extinguishing System and Hood and Duct Cleaning It is a condition of this insurance that all ranges, deep-fat fryers, broilers and other cooking appliances, including their hoods, are protected by an approved, automatic fire extinguishing system, and insofar as such protective equipment is under the control of the Insured Associate, due diligence shall be used to maintain such system in complete working order. x 5. All points of entry are locked and secured during all non-working hours and/or whenever the Insured Associate's premises are unoccupied. ALL OTHER TER1v1S AND CONDITIONS REMAIN UNCHANGED Countersigned By: Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 94 of 197 TO BE ATTACHED TO AND.i\l PART OF THE EVIDENCE OR CERTrFICA->F INSURANCE ISSUED TO: 644 Broadway LLC 660 Broadway Street San Francisco CA 94133 Applicable To: AIN/PID Number: 45629P/PID #: P00077581 Property Policy Number: Refer to Appendix 01 BRC-100 LI 0319 J'HIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. REAL PROPERTY REPLACE1VIENT COST LilvHTATTON (100<¼, of Scheduled Yalne} In consideration of the premium charged, it is agreed that following coverage change applies, but only to coverage provided at insured locations identified by "Property Identification Numbers" where the Declarations Page or Evidence of Commercial Property Insurance issued to the Named Insured by CIBA Insurance Services states that this endorsement applies. The following limitations apply to Real Property at the location described in the Declarations Page or Evidence of Commercial Property Insurance to which this endorsement is attached: 1. The Limit of Insurance for Real Property is 100% of the Real Property Value (RPV) and Real Property Parking Value (RPP), if applicable, for the location that is stated in the Property Program Schedule of Locations in the Declarations Page or Evidence of Commercial Property Insurance to which this endorsement is attached. 2. Any amount payable under the applicable sub-limit for Demolition Cost and Increased Cost of Construction is part of and not addition to the Limit of Insurance for Real Property. 3. Section 9. VALUATION, paragraph d. (3) in the All Risk Property Coverage Form is amended to read: (3) The Company will not pay more on a replacement cost basis than the least of (a) The cost to replace, on the same site, the lost or damaged real property with other property of comparable material and quality which is used for the same purpose; or (b) The amount actually spent by the Insured that is necessary to repair or replace the lost or damaged property. (c) 100% of the Real Property Value (RPV) and Real Properly Parking Value (RPP), if applicable, for the location that is stated in the Property Program Schedule of Locations in the Declarations Page or Evidence of Commercial Property Insurance to which this endorsement is attached. IMPORTANT NOTICE: This policy may not provide full replacement cost coverage in the event of damage to or destruction of covered property. The Building Replacement Cost Limitation endorsement caps the policy Real Property limit at 100% of the Real Property Value (RPV) and Real Property Parking Value (RPP), if applicable, for the location that is stated in the Property Program Schedule of Locations in the Declarations Page or Evidence of Commercial Property Insurance The Real Property Value declared by you is an estimated replacement cost figure based on general information about the insured property. This is not a guarantee that this figure will represent the actual cost to replace the property of it is significantly damaged or destroyed. The actual replacement cost can be impacted by multiple factors including inflation, improvements to the property, and the increased cost of building materials and supplies after a wide spread disaster. It is your responsibility to select the appropriate Real Property Value. If you have questions or concerns regarding the Real Property Value, you should consider obtaining a real estate appraisal or contractor estimate of the Real Property's replacement cost. ALL OTHER TERMS AND CONDITIONS RKMAIN UNCHANGED Countersigned By: Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 95 of 197 TO BE ATTACHED TO :\ND.fl! PART OF THE EVIDENCE OR CERTIFICA-JF INSURANCE ISSUED TO: 644 Broadway LLC 660 Broadway Street San Francisco CA 94133 Applicable To: AIN/PID Number: 45629P/PID #: P00077581 Property Policy Number: Refer to Appendix 01 MEP-025 OT 0319 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY, l\:HNIJVHTJVI EARNED PREJVUUJVI In consideration of the premium charged, it is agreed that following coverage change applies, but only to coverage provided at insured locations identified by "Property Identification Numbers" where the Declarations Page or Evidence of Commercial Property Insurance issued to the Named Insured by CIBA Insurance Services states that this endorsement applies. A minimum earned premium equal to t:vventy five per cent (25''io) of the annual premium applies to the Declarations Page or Evidence of Commercial Property Insurance to _which this endorsement is attached, once coverage becomes effective. No flat cancellation is allowed. ALL OTHER TERJ\11S AND CONDITIONS REMAIN UNCHANGED Countersigned Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 96 of 197 SF. FORM FORM J3SBFL'. NS (Rev. May I, J9•12)x LENDER'S LOSS PAYABLE ENDORSEMENT I. Loss or damage, if any, under this policy, shall be paid t(, the Payee named on the first page of this policy, its successors and assigns, hercinnller referred tons "the Lender" in whatever fonn or cap:wity ils interests may appear and whether said interest be vested in said Lender in its individual or in its disclosed or undisclosc,1 fi,luei:iry or representative cnpacity. or otherwise, or vested in :1 nominee or tmstee of said lender. 2. The insurance under lhis policy. or any rider or endorsement allachcd thef"~lo, as to the interest only of the Lender, its successors and assigns, shall not be invalidated nor suspended: (a) by any etTor, omission, or change respecting the ownership, description, possession, or location of the subject of the insurance or the interest therein, or the title thereto; (b) by the commencement of foreclosure proceedings or the giving of notice of s<1le of any t'f the property covered by this policy by virtue of any mortgage of trust deed; (c) by any breach of warronty, acl. omission, ncglc~l, or non-compliance with any of the provisions of this policy, including any and all riden; now or hereafter attached thereto, by the named insured~ the botTower, mortgagor, tn1stor, vendee, o\vner, tenant~ ·warehouseman, custodian, occupant, or by the agents of either or any of them or by tl1e happening of any event pennitted by them or either of them, or their agents, or which they failed to prevent, whet.her occuITing before or <1ller I.he attachment of this endorsement. or whether before or after a loss, which under the provisions of this policy of insurance or of any rider or endorsement attad1ed thereto would invalidate or suspend the insurance as to the named insured, excluding herefrom, however, any acts or omissions of the Lender while exercising active control and managen1ent of the prope1ty . •,. In the event of failure of the insured to pay any premium or additional premium which shall be,or become due under the tenns of the policy or on account of any change in occupancy or increase in hazard not pennitted by this policy, this Company agrees to give v.-Titten notice to the Lender of such non-payment of premium aHer sixty (60) days from and within one hundred and twenty (l'.'.O) days after due dale of such premium and its is a condition of the continuance of U1e rights of the Lender hereunder that the Lender when so notified in writing by this Company of the failure of the insured to pay such premium sh<1ll pay or cause to be paid the premium due within ten (10) days following receipt of the Company's elem and in writing therefor. If the Lender shall decline to pay said premium or additional premium, the righls of the Lender under this lender·s Loss Payable Endorsement shall not be tenninated before ten(] 0) days after receipt of said written notice by the Lender. 4. Whenever this Company shall pay to the Lender any sum for loss or damage under this policy and shall claim that as to the insured no liability therefor exists, this Company. al its option, m;iy pay to the lender the whole principal sum and interest and other indebtedness due or to become due from the insured, whether secured or unsecured, (with refund of all interest not accmed), and this Company. to the extent of such payment, shall thereupon receive a full assignment and transfer, without recourse, of the debt and all rights and secu11ties held as collateral thereto. 5. If there be any other insurance upon the within described property, this Company shall be liable under this policy as to the Lender for the proportion of such loss or dam:1ge that the sum hereby insured bears lo the entire insurance of similar charncter on said property under policies held by, payable to ,md expr~ssly consented to by the Lender. Any Contribution Clause included in any Fallen Building Clause Waiver or any Extended Coverage Endorsement attached to this c,1ntract of insurance is hereby nullified, and also any Contribution Clause in any other endorsement or rider attached to this contract of insurance is hereby nullified except Contribution Clauses for the compliance with which the insured has received reduction in the rate charged or has received extension of the coverage to include hazards other than fire and compliance with such Contribution Clause is made a part of the consideration for insuring such other hazards. The Lender upon the payment to it of the full amount of its claim, will subrogate tl1is Company (pro rata with all other insurers contributing to said payment) lo all of the Lender·s rights of contribution under said otl1er insurance. 6. This Company reserves the right lo cancel this pt>licy at any time, as provi(kd by its terms, but in such case this policy shall continue in force for the benefit of the Lender for ten ( I 0) days after written notice of such cancellation is received by the Lender and shall then cease. 7. This policy shall remain in foll force and cJ1cct as to the interest of the Lender for a period often (10) days aller its expirntion unless an acccp1ttbk policy in renewal thereof with loss thereunder payable to the Lender in accordance with the te1ms of this Lender's Loss Payable b1dornemenL shall have been issued by some insurance company and accepted by the Lender. 8. Should legal title to and beneficial ownership of any of the property covered under this policy become vested in the Lender or its agents. insurnncc under this policy shall c,mtinuc for the tcnn thereof for the benefit of the Lender hut, in such event. any privileges granted by this Lendcr·s Loss Payable End(>rscmcnt which nrc not also granted the insured under the tcnns nnd conditit>ns ,,fthis policy and/or under other riders or endorsements attached there!,) shall not apply to the insurance hereunder as respects such prope,ty. 9. All notices herein prnvided to be given by the C1mpany lo the Lender in connection with this policy and this Lender's Loss Payable Endorsement shall be mailed lo or delivered lo the Lender al its ,1ffice or branch described on the first page of the policy. Approved: Board of Fire Unde1writc1,; of the Pacific. Calif<-,111in Bankers' :\sso~iati,·)n: Commillcc on Insuran(:i.; Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 97 of 197 • APPENDIX BP-E BASIC PROPERTY - E COMMERCIAL INDUSTRIAL BUILDING OWNER'S ALLIANCE, INC. March 31, 2019 - March 31, 2021 SCHEDULE OF PARTICIPATING INSURANCE COMPANIES The CIBA program provides each Insured their own individual limits as specified on the Declaration page of the Member policy. The Schedule below sets forth the participating insurers to the Insurance Program provided as part of your membership with CIBA. The Limits set forth below are a combination of 'Program Limits' where carriers provide a combined limit for all insureds involved in a single loss occurrence and 'Insured Specific Limits' where certain carriers provide limits to each Insured individually for each single loss occurrence. For any insurer set forth below, whose participation is subject to an aggregate Limit for any specific peril, coverage, or participation, then that Limit is the maximum amount payable to all CIBA Named Insureds combined for the term for the contract identified below, for that Insurers participation. Once that Limit has been exhausted in accordance with the Policy contract terms, then the insurer set forth below will no longer t,ave any further Liability under this Insurance contract. Notwithstanding the Limits set forth below, the individual limits and sublimits set forth in the Member Insurance Contract (AIN), to which this Schedule is attached and incorporated !herein by reference, are the only limits available for any one Named Insured and their identified insured locations(s) identified by the property identification numbers (PIO). FALLS LAKE FIRE AND CASUJ\L n• COMP,.'\NY (Oth,;;r than Hr,mestate CA) AR EXCL EQ FL CIBA-000001-00 Non-Admitted FALLS lr'\KE NATIONll.l INSURANCE COMPANY (Ho,nestate CA} AR EXCL EQ FL Cl BA-000002-00 Non-Admitted $3,000,000 S3,000,000 : EXCESS LIMfri,7M x $3.M .: ASPEN SPECIAUY INSURANCE COMPANY AR EXCL EO FL $1,050,000 PX007YH19 Non-Adm,tted L.\NDMARK.t,,MERiCAN INSURANCE COMPANY AR EXCL EQ FL $2, "i00,000 LHD907587 Non-Admitted FIRSTSPECll',LTY !NSUR;\NCE CORPO!V._TION AR EXCL EO FL $700,000 ESP 2002964 01 Mon-Admitted STEADFAST INSURANCE Cotv1PANY AR EXCL EQ FL $1.400,000 CPP-02390'13-01 Non-Admitted !RONS.HORE SPECIAL Tr INSURANCE COMPANY AR EXCL EQ FL Si,750,000 00351260'1 Non-Admitted $7,000,000 ASPEN SPEC!~\L1Y lNSlJR.ll..NCE COMP.,;Ny AR EXCL EQ FL 53,125,000 PX007YQ19 Non-Admitted CERTAIN UNDERWRITERS AT LLOYD'S, LONDON - BR EVANSTON !NSURP..NCE COMPAN'r' P..R f:XCL EO FL $4,000,000 fv1 KLV 13XP002860 Non-Admitted CERT.t~IN UNDER\,VRITERS AT LLOYD'S, LONDON - H!SCCX SYNDlG1Tf. 2524 AR EXCL EO FL $1,500,000 HNYPRP19815075 Non-Admitted PRtNCfTON fXCES.S g,. SURPLUS UNf.S INSURANCE COfvlPANY AR EXCL EO FL $7,375,000 Non-Admitted NAVIGATORS SPECIALTY lNSURANCE COMP.t..NY, iNC. AR EXCL EQ FL $2,500,000 NY19LCM08JCC1NC Men-Admitted $25,000,000 EXCESS UMIT $25M x $3SM ' > ., < ,· ,· ~ WESTERr.J WORLD INSURANCE COM P,t..NY AR EXCL EQ FL $7,500,000 8RB0004451 Non-Ad:nitted EVANSTON iNSURt"1NCE COMP.ANY AR EXCL EQ FL S6,000,000 MKLV13XP002860 Non-Admitted CERTAIN UNDERWRITERS ,t..T i..LOYt.YS, LOMOO~J - I-nscox SYND!CA TE 3&2.: r'\R t:XCL EQ FL S1,500,000 HNYPRP19838405 Non-Admitted HOMELAND iNSURANCE COf..,1f'ANY Of NEW YORX AR f::XCL EO FL S5,000,000 795009504 Non-Admitted COLONY iNSURANCE C0~.1tP;\NY AR EXCL EQ FL $5.000,000 XP180109- i S25,000,000 £XCESS LIMIT S90M x $GOM HctvlElf..ND iNSURANCf. COM?t•.NY OF Nf.v\l YORK AR EXCL EO FL $18,500,000 795009505 Non-.t... dmitted LLOYD'S SYrvO!C;\Tf. -.t:.Tt.1S61 AR EXCL EC FL S5,0GO,OOO 80621PClBA001419 Non-i.\drnitted MAXUl-..1 iNDEMNffl' COMPANY AR EXCL EQ FL MSP-602-2788-02 Non-Admitted PF\!NCf.TON EXCESS & SURPLUS UNF.S J-!SURANCf. COt-...1?ANY /\R EXC L EQ FL $4t:-.OOO,OCO S90,000,000 BASlC-E 10/21/2019 Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20 Page 98 of 197 HOME.IJ..N D rNSURANCE COMPANY O!-"· NE\V YORK AR EXCL EO FL $42,000,000 795009506 Non-Admitted SCOTTSDP,LE !NSURANCE COMPANY AR EXCL EQ FL S20,COO,OCO BXS0001334 Non-Admitted LLOYD'S SYNDICATE - /..RK 4020 AR EXCL EQ FL $3,00C,000 B0621PCIBA001519 Non-Admitted LAND~.. 1ARK AMERiC.AN INSURANCE COlvlPANY AR EXCL EQ FL S25.000,000 LHD907590 Non-Admitted PRINCETON EXCESS & SURPLUS LINES INSUR1;NCE COMPANY AR EXCL EQ FL $10,000,000 78-A3-XP-0000492-01 Non-Admitted s100,ooo,ooo HOMELAND INSURANCE COMPANY OF NE\:V YORK AR EXCL EQ FL $55,000,000 795009507 Non-Admitted NATiONAL FIRE & MARINE INSURANCE COMPANY AR EXCL EQ FL S50,000,000 92GFP1873 Non-Admitted LANDrv1ARK AMERICAN JNSUR.t..NCE CCfv1PANY AR EXCL EQ FL $75,000,000 LHD907539 Non-Admitted LLOYD'S SYNDlCATE- L!B4472 AR EXCL EQ FL S5,000,000 B0621 PCI SAGO 1619 Non-Admitted LLOYD'S SYNO!C.ATE - HDU 382 AR EXCL EQ FL $15,000,000 B0621PCIBA001719 Non-Admltted MITSUI SU M!TOMO INSURANCE COMPANY of AMERICA AR EXCL EQ FL $10,000,000 EXP7000•i51 Admitted HDI GLOBAL SPECIALTY SE -UK r'\R EXCL EQ FL $25,GOO,OOO 80621PCl8i\001819 Non-Admitted MAXUfv1 INOEMNIW COMPANY AR EXCL EQ FL $'15,000,000 MSP-6032788-02 Non-Admitted $250,000,000 EXCESS tfli,iif:$250M ~ $5001\A MITSUI SUMITOMO INSURP..NCE COMPANY of AMERICA /\R EXCL EQ FL $53,500,000 EXP7000151 Admitted _., HOrvlELAND INSURANCE cor... ~PANY Of NEW YORK AR EXCL EQ FL S55,000.000 795009508 Non-Admitted LLOYD'S SYND!CATE - HDIJ 382 AR EXCL EQ FL S15,GOO,OOO 80621PCIBA001719 Non-Admrlted CHUBB EUROPEAN GROUP LIMITED (CHUBB BERMUDA lNTERNATIONAL) AR EXCL EQ FL $76.500,000 80621PCISA002019 Non-Admitted SCOTTSD/~LE INSURANCE CO~,M°'.4NY AR EXCL EQ FL S50.000,000 8XS0001334 Non-Admitted $250,000,000 LANDMARK AMERICAN INSURANCE COMPANY AR EXCL EQ FL $77,500,000 LHD907588 Non-Admitted NATIONAL FIRE & Mt,R!NE !NSURANCE COMPANY AR EXCL EQ FL $26,000,000 92GFP1873 Non-Admitted CHUBS EUROPEAN GROUP Llrv1ITED {CHUBS BERMUDA iNTERNATlONAL) AR EXCL EO FL $125,000,000 B0621PCIBA002019 Non-Admitted - INOI.A.N HARBOR itJSURANCE COMPANY AR EXCL EO FL $10,000,000 USC00902G9PR19A Non-Admitted PRINCETON EXCESS & SURPLUS UNES INSURANCE COfvlPANY AR EXCL EQ FL Si 2,500,000 78-A3-XP-0000492-01 Non-Admttted S250,000,000 S~ PP~Efy'IENT At LIMITS COLONY INSURANCE COMPANY AR EXCL EQ FL $3,000,000 XP190086-0 Non-Admitted ADDlTJONAl EXCESS'' ASPEN SPECIAL1Y INSURANCE COMPANY /\R EXCL EQ FL $1,050,000 PX007YH19 Non-Admitted LAND-rv1ARK AMERiCAN INSURANCE COMP,t..NY /\R EXCL EQ FL $2,100,000 LHD907587 Non-Admltted FIRST SPECIALTY !NSUR.t..fKE CORPORATIC~J AR EXCL EO FL 5700,000 ESP 2002964 01 Non-Ad~[tted AR EXCL EQ FL S1,400,000 CPP-0239013-01 lRONSHORE SPECIALTY INSURANCE COMPANY AR EXCL EQ FL Si,750,000 003512601 Non-Admitted S7,000,000 INSURED SPECIFIC Lllv11TS The following markets· Pro~icle ''individual limits-" up to: the limits·stated ln the Dedar.3.t:ions Page of the Member Insurance Contract (AiN), bUt in no ~en_i will the tOtal·of. al) "individual lirtiit:s.'' for a CmA·M~mber. .lnsu~ance ,Contract (AIN} ex~eed a ,maximum !imit of $150,000,~00 per oCcurrcnce, regardless of the number of locations inv~lved in the oc~irence. , , , ·: · · AR EXCL EQ FL $150,000,000 f.Jon-Actrntted PIO EFFECTIVE DATES BETWEEN 12/31/:-!0lS-12/30/2019 80621PCIBAA001016 Non-Admitted PID EFFECTIVE DATt:'.S BtlWf:EN 12/31/~019·12/30/2D20 TBD Non-Admttted S150,000,000 10/21!201~ Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20 Page 99 of 197 $7.5 MILUOM EQUIPMEHT BREAKDOWN GREAT LAKES [NSURAfJC£ SE/ HAR1fORD STE;\M BOILER S/,500,000 Ncn-Adrn!tted PID EFFECTIVE D/1.TES Bf.lV✓ EEN 12/3:!./2018-12/30/20:!9 T06250112018 Non-!\d:n;tted P!D EFFECTIVE DATES BtlV✓ EEN n/3:U2019-12/30/2G:?O TBD l"lon-.:\dmitted S7,500,000 Several Liability: PLEASE NOTE - This notice contains important information. PLEASE READ CAREFULL V The liability of an insurer under this contract is several and not joint with other insurers party to this contract. An insurer is liable only for the proportion of liability it has underwritten. An insurer is not jointly liable for the proportion of liability underwritten by any other insurer. Nor is an insurer otherwise responsible for any liability of any other insurer that may underwrite this contract. The proportion of liability under this contract underwritten by an insurer (or, in the case of a Lloyd's syndicate, the total of the proportions underwritten by all the members of the syndicate taken together) is shown above. In the case of a Lloyd's syndicate, each member of the syndicate (rather than the syndicate itself) is an insurer. Each member has underwritten a proportion of the total shown for the syndicate (that total itself being the total of the proportions underwritten by all the members of the syndicate taken together). The liability of each member of the syndicate is several and not joint with other members. A member is liable only for that member's proportion. A member is not jointly liable for any other member's proportion. Nor is any member otherwise responsible for any liability of any other insurer that may underwrite this contract. The business address of each member is Lloyd's, One Lime Street, London EC3M 7HA. The identity of each member of a Lloyd's syndicate and their respective proportion may be obtained by writing to Market Services, Lloyd's, at the above address. Although reference is made at various points in this clause to "this contract" in the singular, where the circumstances so require this should be read as a reference to contracts in the plural. DISCLAIMER: COVERAGES APPLICABLE FOR THE EFFECTIVE AND EXPIRATION DATES AS SPECIFIED IN THE MEMBER INSURANCE CONTRACT (AIN). PLEASE CHECK WWW.CIBASERVICES.COM FOR THE MOST UP-TO-DATE APPENDICES Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 100 of 197 • APPENDIX TR-P • TERRORISM COVERAGE FOR PROPERTY COMMERCIAL INDUSTRIAL BUILDING OWNER'S ALLIANCE, INC. March 31, 2019 - March 31, 2021 SCHEDULE OF PARTICIPATING INSURANCE COMPANIES CERTA!N UNDERWRITERS AT LLOYD'S, LONDON• H!~COX SYND!C1\TE oo~z TER $100,000,000 UTS2536384.19 i'lcn-Adm;tted CERTl',!N UNDERWRITERS AT LLOYD'S, LONDON -V/..UDUS SYNDICATE 1183 TER $50,000,000 AFC181518D19 Non-Admitted CERTAIN UNDERWRITERS ,t...T LLOYD'S, LONDON - V.ALIDUS SYNDICATE ,'1-472 TER $50,000,000 AFc1a1s·1eo•i9 Non-Admitted S200,000,000 $100 MILLION x $200 MILLION . CERTAJt.J UNDER"WRJTERS AT LLOYD'S, LONDON - XLC SYNmCATE 2003 TER $100.000,000 rv1C!BP.000219 Mcn-Admtted Severa! Liability: PLEASE NOTE -This notice contains important information. PLEASE READ CAREFULLY The liability of an insurer under this contract is several and not joint with other insurers party to this contract. An insurer is liable only for the proportion of liability it has underwritten. An insurer is not jointly liable for the proportion of liability underwritten by any other insurer. Nor is an insurer otherwise responsible for any liability of any other insurer that may underwrite this contract. The proportion of liability under this contract underwritten by an insurer (or, in the case of a Lloyd's syndicate, the total of the proportions underwritten by all the members of the syndicate taken together) is shown above. In the case of a Lloyd's syndicate, each member of the syndicate (rather than the syndicate itself) is an insurer. Each member has underwritten a proportion of the total shown for the syndicate (that total itself being the total of the proportions underwritten by all the members of the syndicate taken together). The liability of each member of the syndicate is several and not joint with other members. A member is liable only for that member's proportion, A member is not jointly liable for any other member's proportion. Nor is any member otherwise responsible for any liability of any other insurer that may underwrite this contract. The business address of each member is Lloyd's, One Lime Street, London EC3M 7HA. The identity of each member of a Lloyd's syndicate and their respective proportion may be obtained by writing to Market Services, Lloyd's, at the above address, Although reference is made at various points in this clause to "this contract" in the singular, where the circumstances so require this should be read as a reference to contracts in the plural. DISCLAIMER: COVERAGES APPLICABLE FOR THE EFFECTIVE AND EXPIRATION DATES AS SPECIFIED IN THE MEMBER INSURANCE CONTRACT {AIN). PLEASE CHECK WWW,ClBASERVICES.COM FOR THE MOST UP-TO-DATE APPENDICES Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 101 of 197 ,.------, ACORD® DATE (MM/DD/YYYY) ~· CERTIFICATE OF LIABILITY INSURANCE 01/10i2020 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Argo Insurance Brokers (lntegrc USr'\ Inc.} ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE 3620 Birch Street. Suite 200 Newport Beach, CA 92660 HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR License#: 0E77964 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Phone: (714) 701-0668 Fax· (714) 701-0696 INSURERS AFFORDING COVERAGE NAIC# INSURED REFER TO APPENDIX(ES) LISTEDAND ATTACHED HERETO FOR SCHEDULE 644 Broad',uay LLC OF PARTICIPATiNG lNSUR.~NCE COMPAN!ES AND POLICY NUMBERS. c!o Chris Wrlght APPENO;X(ES) CAN I\LSO BE FOUND AT \t\VVVV.CIBASERVICES.COM: 985 t-..1ornga Road, Suite 214 BP-E && PL Lafayette. CA 94549 COVERAGES THIS IS TO CERTIFY THAT THt: POUCIES OF INSURANCE USiED BELOW HAVE BEEN ISSUED 10 THE iNSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOT\J\1THSTANDING ANY REQUIREMNET, TERM OR CONDTON OF 1\NY CX)NTRACT CR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED ORMAY PERTAIN, THE ii'ISIJRANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUTIONS AND CONDITIONS OF SUCH POUCIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADD'L POLICY EFFECTIVE POLICY EXPIRATION TYPE OF INSURANCE POLICY NUMBER LIMITS LTR INSRD DATE (MM/DD/YYYY) DATE {MM/DDNYYY) X GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 X COMMERCIAL GENERAL $ 50,000 UABILITY CLAIMS MADE [ZJoccuR MED EXP (Any one person} $ EXCLUDED X Deductible - S1 ,COO 01/01/2020 Oii01/2021 PERSONAL & ADV IMJURY $ 1,000,000 GENERAL AGGREGATE $ 2,000,000 GEN'L AGGREGATE ur... 11T APPLIES PER. PRODUCTS-COMP/OP AGG $ 1,000,000 POLICYj If&'fl X I LOC $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT S 1,000,000 ANY AUTO (Ea accident) ALL OVVNED AUTOS BODILY INJURY s - (Per person) SCHEDULED AUTOS Refe; to Appendix 01/01/2020 01/01/2021 X HIREDAUTOS BODiLY INJURY - (Per accident) -X NON-OWNED AUTOS PROPERTY DAMAGE - (Per accident) GARAGE LIABILITY AUTO ONLY - EA ACCIDENT -lAl,YAUTO :OTHER THAN EA ACC $ :AUTO ONLY: AGG 1-$-. ______, EXCESS/ UMBRELLA LIABILITY EACH OCCURRENCE S CLAlfv1S MADE L_jOCCUR AGGREGATE s - s DEDUCTiBLE - RETENT\ON s s WORKERS COMPENSATION OTH AND EMPLOYERS' LIABILITY YIN ! ER EL FACH ACCIDENT ANY PROPRIETOR/P/\Ra•IER!EXECUTIVE □ OFF!CERtlviEMBER EXCLUDED? EL DISEASE - EA EMPLOYEE S (Madatory In NH) If yes, describe under SPECIA.l PROVISIONS below E.L. DISEASE - POLICY UMIT 3 OTHER Terrorism - Certifiec1 /\cts Only 01/01/2020 01/01(2021 INCLUDED DESCRIPTION OF OPERATIONS /LOCATIONS/ VEHICLES/ EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS PID #: P00077531 6fi0 Broadway Street, San Francisco, CA 84133 PER SCHED'JLE OF LOCi\TlONS ATTP..CHED. LOC,\TlONS SUB,IECT TO ENDORSEMf:'J-iTS AS ATTACHED. CERTIFICATE HOLDER CANCELLATION THE POLICIES ARE SUBJECT TO THE PREMiUtv1S, FORf,.:1S, AND RULES IN EFFECT FOR EACH POUCY PERiOD. SHOULD THE POUCY(!ES) BE TER\·1lNATED, THE COMPAMY(iES) \NILL GIVE THE !NSURED !NTEREST IOENTiFIED 30 D;\YS V1'RITTEN NOTICE, 10 DAYS FOR NON• P/\YMENT, /\NC, VVILL SEMD NOT1FICATltJO OF 1\l'iY CHANGES TO THE POLlCY THAT V\IOULD 'Nells Fargo Ban!"~, Nil\ as trustt"e for Deutsche r... 1ortgage COMt•A 2013·COR2. its successors AFFECT THAT !NTEREST, IN Jl.CCORD,\NCEVVITH THE POUCY PROVIS!ON OR /\S REQUIRED andior ass:gns cic ivllctlam1 Loan Services, A PNC Re3! Estate Svs1;;ess BY L/\VV ? 0. Box 25968 Shawnee Mission, KS 66225-5968 REPRESENTATIVES UTHORIZED REPRESENTATIVE ACORD 25 (2009/01) (c)1988-2009 ACORD· The ACORD name and logo are registered marks of ACORD Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20_,.. Page 102 of 197 SCHEDULE OF LOCATIONS: IND/COMM PARKING NO OF NO OF LOC/BLDG ADDRESS/DESCRIPTION PROPERTY TYPE/OCCUPANCY SQ FT RETAIL SQ FT RES SQ FT SQ FT UNITS POOLS Primary 660 Broadway Street Mixed Use - Hab:Restaurants & 9 0 30,000 10,800 0 9 0 San Francisco, CA 94133 habitational units ENDORSEMENTS APPLICABLE (refer to full endorsement wording attached hereto): IN ADDITION TO THE MASTER POLICY ENDORSEMENTS, THE FOLLOWING ADDITIONAL ENDORSEMENTS APPLY TO THIS LOCATION (IF APPLICABLE): Effective Date Removal Date Endorsement No. Endorsement Name 01101;2020 CG 21 70 01 15 CAP ON LOSSES FROM CERTIFIED ACTS OF TERRORISM 01/01/2020 IL 09 85 01 15 D:SCLOSURE PURSUANT TO TERRORISM RISK INSURANCE ACT 01/01/2020 02 MPF-001 CO 0319 GENERAL LIABILITY FORMS EMDORSEMENT 01/0112020 02 DVI/P-001 EX 0319 DESIGNA. TED WORK PERFORMED (RESIDENTIAL WORK - INCLUDING APARTMENT CONVERSIONS) ENCORSEMENT 01/01/2020 02 MEP-025 OT 0319 MINIMUM EARNED PREMIUM ENDORSEMENT TAXABLE LIABILITY PREMIUM: $3,831 00 SURPLUS LINES TAXES: $118.08 NON-TAXABLE LIABILITY PREMIUM: S0.00 STAMPING FEES: S7.87 TAXABLE LIABILITY TERRORISM: $105.00 FIRE MARSHALL TAX: $0.00 NON-TAXABLE LIABILITY TERRORISM: SO.DO STATE SURCHARGES: S0.00 ADD'L STATE/MUNICIPAL CHARGES: SO.DO Page 2 of 3: Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20 Page 103 of 197 IMPORTANT If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER This Certificate of Insurance does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies iisted thereon. ACORD 25 (2009/01) Page 3 of 3 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 104 of 197 TO HE ATTACHED TO ANl1,., PART OF THE EVIDENCE OR CERllFICAT. INSURANCE ISSUED m 644 Broadway LLC 660 Broadway Street San Francisco CA 94133 Applicable To: AIN/PID Number: 45629l/PID #: P00077581 Liability Policy Number: Refer to Appendix CG 21 70 0115 THIS RNOORSKMKNT CHANGES THE POLICY. PLEASR READ IT CAREFULLY. CAP ON LOSSES FROlVi CERTIFIED ACTS OF TERRORISJ\1 "fhis endorsement modifies insurance provided under the following: - COMMERCIAL GENERAL LIABILITY COVERAGE PART • LIQUOR LIABILITY COVERAGE PART - OWNERS AND CONTRACTORS PROTECT1VE LIABILITY COVERAGE PART • PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART • RAILROAD PROTECTIVE LIABILITY COVERAGE PART - UNDERGROUND STORAGE TANK POLICY A. If aggregate insured losses attributable to terrorist acts certified under the federal Terrorism Risk Insurance Act exceed $100 billion in a calendar year and we have met our insurer deductible under the Terrorism Risk Insurance Act, we shall not be liable for the payment of any portion of the amount of such losses that exceeds $100 billion, and in such case insured losses up to that amount are subject to pro rata allocation in accordance with procedures established by the Secretary of the Treasury. "Certified act of terrorism" me.ans an act that is certified by the Secretary of the Treasury, in accordance with the provisions of the federal Terrorism Risk Insurance Act, to be an act of terrorism pursuant to such Act. The criteria contained in the Terrorism Risk Insurance Act for a "ce1tified act of terrorism" include the following: 1. The act resulted in insured losses in excess of $5 million in the aggregate, attributable to all types of insurance subject to the Terrorism Risk Insurance 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. B. The terms and limitations of any terrorism exclusion, or the inapplicability or omission of a terrorism exclusion, do not serve to create coverage for injury or damage that is otherwise excluded under this Coverage Pait. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED Countersigned By: Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 105 of 197 TO BE ATTACHED TO AI'i R:\J PART OF TIIE EVIDENCE OR CERTIF.ICA'J INSURANCE ISSUED TO: 644 Broadway LLC 660 Broadway Street San Francisco CA 94133 Applicable To: AIN/PID Number: 45629liPID ii: P00077581 Liability Policy Number: Refer to Appendix IL 09 85 0115 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DISCLOSllRE PURSllANT TO TERRORISM RISK INSURANCE ACT THIS ENDORSEMENT IS ATfACHED TO AND MADE PART OF YOUR POLICY IN RESPONSE TO ·mE DISCLOSURE REQUIREMENTS OF lllE TERRORISM RISK INSURANCE ACT. THIS ENDORSEMENT DOES NOT GRANT ANY COVERAGE OR CHANGE THE TERMS AND CONDITIONS OF ANY COVERAGE UNDER THE POLICY. SCHEDULE - PART I Terrorism Premium (Certified Acts) This premium is the total Certified Acts premium attributable to the following Coverage Part(s), Coverage Form(s) and/or Policy(ies): Additional information, if any, concerning the terrorism premium: SCHEDULE - PART II Federal share of terrorism losses __ % Year: 20 (Refer to Paragraph B. in this endorsement.) Federal share of terrorism losses __ % Year: 20 (Refer to Paragraph B. in this endorsement.) Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. Disclosure Of Premium In accordance with the federal Terrorism Risk Insurance Act, we are required to provide you with a notice disclosing the portion of your premium, if any, attributable to coverage for terrorist acts certified under the Terrorism Risk Insurance Act. The portion of your premium attributable to such coverage is shown in the Schedule of this endorsement or in the policy Declarations. B. Disclosure Of Federal Participation In Payment Of Terrorism Losses The United States Government, Department of the Treasury, will pay a share of terrorism losses insured under the federal program. The federal share equals a percentage (as shown in Part II of the Schedule of this endorsement or in the policy Declarations) 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 ce1tified under the Terrorism Risk Insurance Act exceed $100 billion in a calendar year, the Treasury shall not make any payment for any portion of the amount of such losses that exceeds $100 billion. C. Cap On Insurer Participation In Payment Of Terrorism Losses If aggregate insured losses attributable to terrorist acts certified under the Terrorism Risk Insurance Act exceed $100 billion in a calendar year and we have met our insurer deductible under the Terrorism Risk Insurance Act, we shall not be liable for the payment of any portion of the amount of such losses that exceeds $100 billion, and in such case insured losses up to that amount are subject to pro rata allocation in accordance with procedures established by the Secretary of the Treasury. ALL OTHER TERMS AND CONDITIONS REMAIN UNClM.NGIW Countersigned By: Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 106 of 197 TO BE ATTACHED TO AI\.)Ri\l PART OF THE E\'JDENCE ORCERTJF!C\'-~ INSUR!\.NCE ISSUED TO: 644 Broadway LLC 660 Broadway Street San Francisco CA. 94133 Applicable To: AINiPID Number: 45629liPID #: P00077581 Liability Policy Number: Refer to Appendix 02 MPF-001 CO 0319 THTS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. GENERAL lJABH,1.TY FORl\11S ENDORSEl\!lENT The following are the forms attached to and forming part of the policy at inception: FORM NUMBER EDITION FORM TITLE APPLIES TO THIS DATE CERTIFICATE SN-CA 03 18 California Surplus Lines Notice YES ASPGL075 05 11 Commercial General Liability Declarations YES ASPCO98 02 13 Sig nature Page YES IL0017 1198 nditions YES CG 00 01 12 07 Commercial General Liability Coverage Form YES ASPGL006 01 04 Schedule of Applicable Forms YES ASPCO021 04 10 ASIC OFAC Endorsement YES ASPCO023 HJ 16 Nuclear, Biological, Chemical, Or Radiological Terrorism YES Exclusion I ASPGL001 10 11 Asbestos Exclusion Endorsement YES ASPGL007 10 11 Silica Exclusion Endorsement YES CG 04 35 12 07 Employee Beneflts Liability Coverage YES CG 21 44 10198 ~itation Of Coverage To Designated Premises Or Project YES CG 21 70 0115 Cap on Losses from Certified Acts of Terrorism See Note 1 CG 25 04 05 09 Designated Location(s) General Aggregate Limit YES ASPGL098 10 11 Discrimination Exdusion YES ASPGL164 06 13 Continuous Or Progressive Injury or Damage Exclusion YES CG 21 35 10 01 Exclusion - Coverage C - fvtedica! Payments YES CG 21 47 12 07 Employment - Related Practices Exclusion YES CG 21 65 12 04 Total Pollution Exclusion with A Building Heating, YES Cooling and Dehumidifying Equipment Excepticin and a Hostile Fire Exception CG 2.1 67 12 04 Fungi or Bacteria Exclusion YES IL 00 21 09 08 Nuclear Energy Liability Exclusion Endorsement (Broad Form) YES ASPC0002 07 15 General Service Of- Suit Notice YES IL 09 85 0115 Disclosure Pursuant to Terrorism Risk Insurance Act See Note 1 ASPCBA 033 03 14 Deductible Liability Insurance Endorsement YES ASPCBA 031 03 14 Named I11sured Endorsement YES ASPCBA 017 4 Additional Insured Endorsement See Note 2 ASPCBA 008 03 14 Hired Auto And Non·-owned Auto Liability Endorsement YES ASPGL114 12 06 f\1on-Duplicc1tion of Limits of Insurance Endorsern:0nt YES /\SPCBA 032 03 14 Stop Gap ··- Employers UabHity Covern~~e Endorsement YES /\SPGL003 OJ. 04 Total Lead Exclusion YES ASPCBA 011 03 H Pun1t1ve or Exemplar; Damages Exclusion Endorsement YES Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 107 of 197 ASPCBA 009 03 14 Cross Suits Exclusion Endorsement YES ASPGL041 05 04 Intellectual• Property Infringement Exclusion YES ASPCBA 018 03 14 Amendment to Per ''Customer'' Limit of' Insurance For See Note 2 Customers' Goods Legal Liability And Sale And Disposal ASPCBA 027 02 18 Construction Operations Exclusion (With Non-Structural YES Improvement Exception) Endorsement ASPCBA 019 03 14 Designated Work Performed (Residential Work - Including Apartment Conversions) YES Endorsement ASPCBA 012 03 14 Personal And Advertising Injury Exclusion & Definition YES Change Endorsement ASPCBA 030 03 14 Infestation And Vermin Exclusion Endorsement YES ASPCBA 024 03 14 Domestic Animal Liability Exclusion Endorsement See Note 2 ASPCBA 021 03 14 Vacant Land Construction Activity Exclusion Endorsement See Note 2 ASPGL044 10 11 ' . Common Policy Conditions Yes ASPC01114 0115 Policyholder Disclosure Notice of Terrorism Insurance Coverage See Note 1 CG 21 73 0115 Exclusion of Certified Acts of Terrorism See Note 1 CG 00 62 12 02 War Liability Exclusion YES CG 24 26 07 04 Amendment of Insured Contract Definition YES CG 00 68 05 09 Recording And Distribution Of Material Or Information In YES Violation Of Law Exclusion CG 2116 07 98 Exclusion - Designated Professional Services YES CG 02 12 1185 Cancellation By Us YES IL 00 03 09 08 E of Premium YES ASPCBA 010 03 14 Infestation And Vermin Coverage Change Endorsement See Note 2 (Designated Location) ASPCBA 001 03 14 Commercial Storage Insurance Amendatory Endorsement See Note 2 ASPCBA 002 04 17 Employee Definition Endorsement Exclusion for Injury to YES Temporary Workers ASPCBA 005 03 14 Course of Construction Liability Limitation Endorsement See Note 2 ASPCBA 006 03 14 Course of Construction Liability Exclusion For Phased See Note 2 Projects ASPCBA 007 03 14 Marine Exclusion Endorsement See Note 2 ASPCBA013 03 14 \Naiver of Subrogation Against Unit Owners Endorsement See Note 2 (Only Applicable To State of Ma,yland) ASPCBA 015 03 14 Hired Auto And Non-Owned /\uto Exclusion Endorsement See Note 2 ASPCBA 016 03 14 Additional Insured Basic Primary Liability For Premises & See Note 2 Operations Endorsement A.SPCBA022 03 14 Association Va!et Parking Change Endorsernent See Note 2 ASPCBA023 OJ 14 VVeather Dedtictib!e Endorseme11t See Note 2 /1SPCBA (l'J5 05 15 f"linimurn Earned Premlurn Endorsement YES Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 108 of 197 ASPCBA 03"7 07 15 Hab1 d ility Exclusion Endorsement See Note 2 ASPCBA 036 06 15 Medical Payments Coverage Change Endorsement See Note 2. (Designated Location) ASPCBA 040 04 17 Exclusion - Designated Ongoing Operations See Note 2. ASPCBA 039 1116 Habitability Deductible Endorsement See Note 2. ASPC01126 04 16 Policyl1older's Guide to Reporting a Casualty Claim YES IL 12. 01 11 85 Policy Change No, 1 YES ASPCBA 041 05 18 Amend Definition of Products··Completerl Operations Hazard YES ASPCBA 042. 05 18 Amend Limits of Insurance Endorsement YES ASPCBA 043 05 18 Designated Location(s) General Aggregate Limit ,YES NOTES: 1 Certified Terrorism Coverage - apRlies only if the Named Insured accepted Certified Terrorism Offer for the location specified in the Declarations Page or Certificate Of Liability Insurance and Certified Terrorism Premium is paid at inception of coverage, If the Named Insured does not accept the Certified Terrorism Offer for the location specified in the Declarations Page or Certificate of Liability Insurance, then the Exclusion of Certified Acts of Terrorism endorsement applies as respects that location. 2 Discretionary Endorsement - Applies Only if Specified in the Declarations Page or Ce1tificate of Liability Insurance issued to the Named Insured by CIBA. PRIMARY COMMERCIAL GENERAL LIABILITY LIMITS of liability $ 2,000,000 General Aggregate Limit - Per Location $ 1------1 Products/ Completed Operations Aggre9ate Limit INCLUDED IN GENERAL AGGREGATE LIMIT 1,000,000 Bodily Injury r, Property Damaqe Limit - Each Occurrence $ 1,000,000 · I & Advertising Injury Liability Limit 1,000,000 Employee Benefits Liability Limit (Each Employee and Policy Aggregate) Retroactive Date: 12/31j2002 or first date thereafter written on a continual basis Each Employee Deductible: $1,000 $ 1,000,000 Non-Owned & Hired Automobile Liability - Business Use Only - Each "'Accident", subject to General Agqregate l..in;it $ 50,000 Damage to Premises Rented To You Limit EXCLUDED Medical Expense Limit (flny one person) .1,000,000 Stop Gap -·· Employers Liability Covernqe ·· ND, OH, WA & WY ·· Bodily Injury Uy Accident, Bodily Injury By Dise~se ···· Each Employee. Aggregate $1,000,000 ALL OTHER TElC'ilS AND CONDITIONS REI\-:lAIN lJNCHANGED Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 109 of 197 Countersigned Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 110 of 197 TO BE ATTACHED TO Al\.l:i.1\1 PART OF THE EYJDENCE OR CERT1FICA'J. INSVRANCE ISSUED TO: 644 Broadway LLC 660 Broadway Street San Francisco CA 94133 Applicable To: AINiPID Number: 45629LiPID ii: P00077581 Liability Policy Number: Refer to Appendix 02 DWP-001 EX 0319 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DESIGNATED \VORK PERFORMED (RESIDENTlAL \VORK - INCLUDING APART!VIENT CONVERSIONS) ENDORSEl\fENT THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING: - COMMERCIAL GENERAL LIABIUTY COVERAGE PART - PRODUCTS/COMPLETED OPERATIONS LJABILITY COVERAGE PART In consideration of a premium charged, it is agreed that the following coverage change applies, but only with respect to coverage provided at all locations where The Commercial Industrial Building Owner's Alliance ("CIBA") has issued a Declarations Page or a Certificate of Liability Insurance to the Insured Associate and/or Additional Insured and such Certificate states that this endorsement applies. 1. SECTION I - COVERAGES, COVERAGE A BODILY AND PROPERTY DAMAGE LIABILITY, Paragraph 2. Exclusions, is amended to include the folloy,,ing: This insurance does not apply to "bodily injury" or "property damage" based upon, arising out of, directly or indirectly, in whole or in part, or in any way involving "your work" during the course of conver.ting property to any "residential property". This exclusion applies to any properties or buildings that are now being converted or have been converted by anyone to "residential" occupancy. 2. SECTION I - COVERAGES, COVERAGE B PERSONAL AND ADVERTISING INJURY LIABILITY, Paragraph 2. Exclusions, is amended to include the following: This insurance does not apply to "personal and advertising injury" based upon, arising out of, directly or indirectly, in whole or in part, or in any way involving "your work" during the course of converting property to any "residential property". This exclusion applies to any properties or buildings that are now being converted or have been converted by anyone to "residential" occupancy. 3. SECTION V - DEFINITIONS is amended to include the following: "Residential property" means: (i) single family dwellings and single units of residential properties; (ii) condominiums; (iii) town homes or townhouses; (iv) planned unit developments; (v) row houses; (vi) co- operative housing; (vii) villas within a condominium association or homeowners association; (viii) master- planned housing; (ix) tract homes; (x) mass-produced single family homes; (xi) custom-built homes; and (xii) multi-family housing, intended for human residency. "Residential property" shall not include: (1) Apartment buildings that do not have any owner occupied units; or (2) Apartment buildings in which all of the individual units are rented. "Your Work" means: 1) Work or operations performed by you or on your behalf; and 2) Materials, parts or equipment furnished in connection with such work or operations. "Your Work" includes: 1) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your work" and 2) The providing of or failure to provide warnings or instructions. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED Countersigned By: Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 111 of 197 TO BE ATTACHED TO Al' Ri\1 PARTOFTIIE E\'lDENCE ORCERTIFICA: ~ INSUR\NCE ISSUED TO: 644 Broadway LLC 660 Bro~1dway Street San Francisco CA 94133 Applicable To: AIN/PID Number: 45629L/PID #: P00077581 Liability Policy Number: Refer to Appendix 02 MEP-025 OT 0319 THTS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. MINIIWUM EARNED PREMHJM ENDORSEMENT THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING: - COMMERCIAL GENERAL LIABILITY COVERAGE PART In consideration of a premium charged, it is agreed that the following coverage change applies, but only with respect to coverage provided at all locations where The Commercial Industrial Building Owner's Alliance (''CIBA") has issued a Declarations Page or a Certificate of Liability Insurance to the insured Associate and/or Additional Insured and such Certificate states that this endorsement applies. A minimum earned premium equal to twenty five per cent (25%) of the annual premium applies to the Certificate of Liability Insurance to which this endorsement is attached, once the Certificate becomes effective. No flat cancellation is allowed. ALL OTHER TERMS AND CONUITIONS REMAIN UNCHANGED Countersigned Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 112 of 197 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED ENDORSEMENT THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING: COMMERCIAL GENERAL LIABILITY COVERAGE PART In consideration of a premium charged, it is agreed that the following coverage change applies, but only with respect to coverage provided at all locations where The Commercial Industrial Building Owner's Alliance ("CIBA") has issued a Certificate of Liability Insurance to the insured Associate and/or Additional Insured and such Certificate states that this endorsement applies: A. SECTION II -WHO IS AN INSURED is amended to include the following: 1. Condomjr(~JS~<<:;:'·\, /<~~~tf{ > -/\ d'< - -··:·,~- ",, ·, :;~~~~, t , "- ;,;} /( a' ·, \ 1- l \ \ j Each infli~idLal_ unit of t7_f1:;:{1red con~or11iniut, b~to_rllY,~}t~':le.sp ct to liabi~;;'.fri:5i{ou~ of the 1 o:::· 7 ownersh1p,,maintenance, or rer;iar[ qf the portion/of t~e prem1se,s w~1~h_,1s-not reservedfor such unit owner's \..... 1 \· - ' , ; c-•------·j exclusiv~ use or occupaJ:i:cy.., tY: \ / -. / l - I -• •,:,s, :/·-~-:-·j/':;,_/1 \({_ · >,, ____ _,,:l.'\at,<;'. [/ -j f } j 2. Any person'.or orgairiz&tlon set forthJn the evidence of ins~ran'te is also an insured, buf bnly with respect to liability: ·•.:..,~;,__-~ -·-<: ~-~·.,,------" a. Arising out of your ongoing operations or premises owned by or rented to you; or b. As co-owner of the premises shown in the evidence of insurance. 3. Any person or organization for whose benefit the Named Insured has, prior to the time of occurrence, agreed in writing to obtain insurance such as is afforded by this Policy, but only with respect to the following: a. Owners or other interest from whom land has been leased Liability arising out of the ownership, maintenance, or use of that part of the land leased to the Named Insured, subject to the following additional exclusion: This insurance does not apply to: (1) Any occurrence which takes place after the Named Insured ceases to lease that land; or (2) Structural alterations, new construction, or demolition operation performed by or on behalf of such person or organization; or b. Mortgagee, Assignee, or Receiver The liability of such person or organization as Mortgagee, Assignee, Receiver, and arising out of the ownership, maintenance, or use of premises of the Named Insured, subject to the following additional exclusion: (1) This insurance does not apply to structural alterations, new construction or demolition operations performed by or for such person or organization. ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED ASPCBA 017 03i4 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 113 of 197 APPENDIX PL PRIMARY LIABILITY COMMERCIAL INDUSTRIAL BUILDING OWNER'S ALLIANCE, !NC. March 31, 2019 - March 31, 2021 SCHEDULE OF PARTICIPATING INSURANCE COMPANIES PRIMARY $1 MILLION PER OCCURRENCE/ $2 MILUON GENERALJl.GGREGATE PER LOCATION ASPEN SPECIALTY INSURANCE CChrlPNJY GL CROOCO\N19 Non-Admitted NON,OWNED & HIRED AUTOMOBILE UABILITY.$1M!LLION PERj\CCIDENT / SUBJECT TO GENERAL AGGREGATE LIMIT .t..SPEN S?ECIAliY INSURANCE COM PP.NY AUTO CRC0COi.N19 Non-Admltted DISCLAIMER: COVERAGES APPLICABLE FOR THE EFFECTIVE AND EXPIRATION DATES AS SPECIFIED IN THE MEMBER INSURANCE CONTRACT (AIN). PLEASE CHECK WWW.CIBASERVICES.COM FOR THE MOST UP-TO-DATE APPENDICES fJ3!Z9/2019 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 114 of 197 APPENDIX TR-L TERRORISM COVERAGE FOR LIABILITY COMMERCIAL INDUSTRIAL BUILDING OWNER'S ALL!Af'.JCE, INC. March 31, 2019 - March 31, 2021 SCHEDULE OF PARTICIPATING INSURANCE COMPANIES . TERRORISM COVERAGE_: PRIMARY $1 MILLIO!lf PER OCCURRENCE/ $i MILLION GENERAL AGGREGATE PER LOCATION . . . ASPEN SPECJAL1Y INSURJ\NCE C0~.'1P;\NY GL CROOCO\N19 Non-Admitted TERRORISM COVERAGE: $5 MILLION PERo'CCURRENCE & AGGREGATE PER LOCATION EXCESS OF $1 MILLION PRIMARY: LEXINGTON !NSURANCE COMPANY· BOSTON XSGL 023627388 Non-Admitted 0 TERR0RISM COVERAGE: $5 MILLION PER OCCURRENCE& AGGREGATE PER LOCATION EXCESS OF $S MILLION EXCESS OF $1 MILLION PRIMARY CERTAIN UNDERWRITERS AT LLOYD'S, LONDON~ BRffSYND1C.4T€ 2987 XSGL XS1095319 Non-Admitted DISCLAIMER: COVERAGES APPLICABLE FOR THE EFFECTIVE AND EXPIRATION DATES AS SPECIFIED IN THE MEMBER INSURANCE CONTRACT (AIN). PLEASE CHECK WWW.CIBASERVICES.COM FOR THE MOST UP-TO-DATE APPENDICES 03/29/2019 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 115 of 197 I I Falls lake National Insurance Company Stock Insurance Company 6131 Falls of Neuse Road Suite 306 Raleigh, NC 27609 1-800-780-7454 www.fallslakeins.com In Witness Whereof, the Falls Lake National Insurance Company has caused this policy to be executed and attested, and if required by state law, this policy shall not be valid unless countersigned by our authorized representative. Secretary President CPJ 00 02 00 12 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 116 of 197 FALLS INSURANCE COMPANIES Property Policy FALLS LAKE NATIONAL INSURANCE co:MPANY (.:.'\ Stock Jnsurrnce Comp::,ny. hcrein:tfler Uk· -•cc..1mp.1ni) 613"1 F:1ll:- of N(.~nse Ro:1d; Rah:lgb, '!'JC T~61)9 Toll-free number: l-800-780-7'-+54 POLICY DECLA.R.ATIONS Policy Number: Cl BA-000002-00 1. N,-\J.\-IED INSURED and lvL\lLING ADDRESS: The Member of Commercja[ Industrial Building Owner's Alliance, Inc. ("CIBA'') holding valid evidence of Commercial Property Insnrnnce as issued by CIBA Insurance Services, Inc. on behalf of the Company. 655 N Central Avenue #2100 Glendale, CA 2. POLICYPERIOD: March31,2019 to 11farch31,2020 Coverage for individual Insured :Member is limited to 12 Months for Risks attaching during the period March 31, 2019 to March 31, 2020, beginning and ending 12:01 AM at the location of the property insured as further defined herein. Individual Insured Member(s) will attach at any time for a period not exceeding 12 months during the period March 31, 2019 to :March 31, 2020, beginning and ending 12:01 A.Ivl at the location of the property .insured. 3. INTERESTS COVERED: All Risk Property Covcr,1ge 4. POLICY LIMITS: $3,000,000 per occurrence; Policy 1\ggregme - "J'he Company will pay all losses subject to the ptr occurrence limit not t0 exceed the total · · ·· · · · · ~ · -- · tes DEDUCTIBLES: As per Deductible Endorsement. 5. PERILS: All Risks of Direct Physical Loss or damage t'Xduding Flood, E1rthqu:1kt· ;1nd Equipment Breakdown. 6. COVERAGES: 1. Real Property 2. Business Perso,1:11 Propeny 3. .l.A)SS of lncon1c 4. Exrs:1 Expense'. 5. Provisions Applicable "fo Luss qf Jncorne and Extra Expense 6. Accounts Recciv,1hk 7 "Ekcrronic D:11:1 Prc,ces:;ing EL]uipmem'' :md "Elccrronic Dat:1 Processing 1\-!cdia'' 9. Valuable Papers :mcl Records "1(1_ Emergency Vacating E:-;jx:nsc l "l. Locks and Kevs 12. lncre::iscd Tax I ai:1bili,,· for l{cnrnl I ncomc 13. Ars<",n R::w;-inl .14. B~1ck tJp or ()vc·rflo\v ofSc\v<.::r(11· l)r;1ins ·15. Business Pc-rsunal PrupL"m· \\-hilc· ()ff Premise·, m In Tr,msir Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20• Page 117 of 197 INSURANCE I P:ropexty Policy 8. FORMS .A.ND ENDORSEMENTS: Endorsement No. 1 -· Extension of Subiimit Endorsement Endorsement No. 2 - Deductible Endorsemem Endorsement No. 3 - Inclusion of Named \v'indsr.orm Cover'.lge Endorsement Endorsement No. 4 - Service of Suir. Endorsement. Endorsement No. 5 - Exclusion of Certified Aets of Terrorisrn Endorsement No. 6 - CIBA Property Endorsements Forms List. ·crnA. Grnndfatbcrcd Location 9. DATE ISSUED: Broker: CRC Insurance Services, Inc. Property Division Hl375 Richmond Avenue, Suite 500, .Houston, TX 77042 This policy may be subject to surplus lines taxes, stamping fees, surcharges, and certain surplus lines reporting requirements mandated by state regulation. The Surplus Lines Broker is responsible for the disclosure of all related taxes, surcharges, and fees. The Surplus Lines Broker is also responsible for the applicable surplus lines reporting requirements including bm not limiled to the submission of diligent search forms. This policy is issued by a surplus lines insurer. In the event of insolvency of the insurer, this insurance is not covered by the Guaranty Fund or Guarantee Association. ln considernti.on of the payment of premium and in reliance upon statements made in the :1pplicuion, this policy including aU endorsements issued herewith shall constitute the contracr. between Company and rhc Named Insured. Th.is poi.icy is valid only if signed belo,,, by a duiy ;mthorized representative of the company. PRES.ID ENT SECRETARY Terence .l'vkC:1ffrnv Eric Libnd Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 118 of 197 P:ropexty Policy CHOICE OF L.AW AND JURISDICTION: In the evenr of any dispute arising between the Named lnsmed and Insurer concerning this pdicy, the following Law and Jurisdiction clause shall apply: Law: This policy shall be subject m the applicable state law for the insured loc:uion as identified in the Declarations page by its "Property Identification Number". Jurisdiction: Jurisdiction over such dispute will with the sr.ar.e iaw for r.hc insured locaLion :tS identified in the Declarations page by ir.s "Property Identificar.ion Number". Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 119 of 197 iNSURANdE COMPANIES. Property Policy SERVICE OF SUIT CLAUSE (U.S.A.) It is ,1gtted tl.ut in tbt even:: of rl1e foilutt of this Company herton t:c, p,1y ,rny ;Jln<:>tmr claimed to be due hereunder, this Cump:lny hereon, at the rct;u,:st of t:h,: Insrn:ed, wiil subrnit r.o the jrn:isdicr.ion of any courr. of competent jurisdiction with the United States of America :md wiH comply wir.h ;lU ret;uir,-menr.s necessary t<:, give ,;uch Court jurisdiction and ,,H matttrs :u:.ising htreunder shall be determined in '.lccordance wi'.11 the hw and pr;1cticc of such Court. Ir.is fm:ther agreed rhar. service of process in such suir. rnay be mack: upc,n the Company Pr,:sicknrs, or their norninecs. 1n any suit ,1gainst ,iny cme of them upon this policy. tbc Cornp;iny will ;,bide by the foul ckcision of wch Court or any Appdlate Court i.n rl1e event of an '.lppeaL ,0 Company Presidents, or their nominees are amhorizul and din:cr.ed u, accept sexvicc: of process on bebaif of the Companies in any such suit and/or upon the rec;uest of t]x Insured to give ;l wtiuen und(·ttaking to the Insured that it or they will enter a general appearnnce upon the Cor:npany's behalf in rhc: event scch a suit. shall be .inst.itmed. Furtl.1et, pursuant to any st:1tue of any srate, territory or distti.::r. of the United Stm(·s of J\meric1, v.·hich makes provision therefore, this Comp'.lny hereon hereby desigrnir.es r.he Supet.inr.endem, C:ornmissioncr or Dirtct:or of lnsunincc of other officer specified fr>r r.har. purpose in the srarur,· or his succ,,s~or or successoi:s in office; as their r.rne and lawful arxorney upon whom nny be ,;erved any fav:foi process in :my action, suit or pwceding inst.ituted by or on b<:l1,1lfr,f the Insured o.r any beneficiary h,:1:ennder ai:.ising out or' r.his conr.uct: c,f' insurance, and hereby de:,ignate the above nam.td as the person to whom the s,iid officu: is ;\uthori:,ed to 1:nail such p1:ocess or a ti:ue copy thereof. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 120 of 197 FALLS LAKE INSURANCE COMPANIES Property Policy PREMIUM PAYMENT CLAUSE The Named Insured as set forth on the Decimations p:ige of this policy unclerukes that premium will be paid in foll r.o CrBA Insurance Services Inc. 011 behalf of the :Insurer within .30 (thiny) days of inception of this policy (or, 'in respect of installment premiums, when clue). If the premium due under this policy has not been so paid to CIBA Insurance Services Inc. 011 behalf of th<= Insurer by the 30th (thirtieth) day from tl1e inception of this policy (and, in respect of installment premiums, by the date they are due) tl1e Insurer shall have the right t.o cancel this policy by nor.ifying the specific Named Insured via CIBA Insurance Services, Inc. in writing. In the event of cancellation, premium is due to the Insurer on a pro rnta basis for the period that tl1e Insurer is on risk but tbe fnU policy premium shall be payable to the lnsurer in r.he event of a loss or "occurrence" prior to the date of termination which gives rise to a valid claim under this policy. It is agreed tl1at the Insurer shall give not less than lO clays prior notice of cancellation to the Named Insurd via CIBA Insurance Services, Inc. If premium due is paid in foll to the Insurer before the not.ice period expires, notice of cancellation shall automar.icaUy be revoked. If not, the policy shal.l automatically terminare at the end of the notice period. If any provision of mis clause is found by any court or administrative body of competent jurisdiction to be invalid or unenforceable, such invalidity or unenforceability will not affect the or.her provisions of this clause which will remain in full force and effect. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 121 of 197 FALLS LAKE INSURANCE. COMPANIES, Propexty Policy ALL RISK PROPERTY COVER.AGE FORM CIBA- 2019 Subject to the te1ms, conditions, limitations and exclusions hereinafter contained or added by endorsemem(s), this Policy insures Real and Personal Property (including Improvements and Benerments) of the Named Insured, or property for which the Named Insured may be held legally liable, against ALL RISKS OF DIRECT PHYSICAL LOSS OR DAMAGE EXCLUDJi'\/G "FLOOD" AND "EI\RTH MOVE1\1ENT" occuning during the policy period, The word "Underwriter(s)", Insurer(s)" or "Company" wherever it :1ppears in this policy me:1ns the schedule of participating insurers referenced in the Appendix attached t0 and forrning part of this policy and subject to any notices contained herein, \Vherever '$' or USD appears herein these are deemed to read 'Unitc,d States Dollars' Named Insured: Per the Declarations page of this policy Mailing Address: Per the Declarations page of this policy 1. POLICY PERIOD In consideration of premium paid, this policy attaches and covers for the period as set fonh in the Declararjons p:ige beginning and ending at 12:01 AJ\:L, Standard Time, at the location as_ set forth in the Declarations page, 2. LIMITS OF LIABILITY a. The Company shall not be liable in any one ;'occurrence" for more than the limits set forth in the Declarations page or endorsed hereafter except for imcrests, or perils, which arc sub-limited in clause 2,6, or fmther sub-lirnited by endorsement(s) to this Policy. b. Sub-limits of Liability Inclusive within the limits ofliability set forth in the Declarations page are the following sub-limits unless otherwise stated in the Declarations page or endorsed hereafter: (1) Vahrnble Papers & Records $ I 00.000 (2) Accounts Receivable $ 250,000 (3) Professional Fees $ 100,000 (4) Landscaping, 'frees, Shrubs, Plants ,ind Lawns s 250,000 further sub-limited maximum per item limit of: Per Trc<:: or Lawn s 10,000 Per Shrub or Pbm s 500 (5) Emergency Vacating Expense ~ '100,(HJO (6) Tenant Relocation Expense $ I 00,0()(1 subjecr. to '.t m:iximum payrncnr per unir of s 5.(J!i(J (7) Lock:; and Key~ :, 25,0(1(1 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 122 of 197 LAKE··INSURANGE COMPAf'•.J Property Policy (8) Pools, tennis courts, playgrounds, recreational equipment S 500,000 (9) Pollution Cle,mup and Removal Costs S 100,000 except for Asbestos Removal which is further limited to S 25.000 (10) Debris Removal Costs And Expenses 25'% of adjusted loss atnount not to exceed $5,000,000 (11) Building Ordinance, Dernolir.ion & Increased Cost Of Construction - · Tht follov,ring sub-limits apply to Building Ordinanct, Demolition & Increased Cost of Cons.ruction except as otherwise stated in the Declarations page or endorsed hereafter: Coverage A: Undamaged Portion S Included Coverage B: Demolition $ J00,000 Coverage C: Increased Cost of Construction s 100,000 ¾ CoverageD: Loss of 1.ncorne '!;' 50,000 (12) 1\dditions under construction, alterations and repairs to Real S 25,000 Property, including materials, equipment and supplies, except as othenvise stated in the Declarations page or endorsed hereafter (13) Business Personal Property including "Fine i\rts", except as otherwise stated in tht Declarations page or endorsed $ 100,000 hereafter (14) Mold, Fungi, \Vet or Dry Rot and :Bacteria s l 0,000 (15) Off-Prernises Services Imerruption s 100,000 (16) Fire Fighting J\fatcrials c,r Expenses s J00,000 (17) Increased Tax Liability for Rent.al Income 9 25.000 Arson Reward 10% of J\djustc:d claim; not to exceed $25,000 (19) Back Up or Overflow ot ::,ewers and Drains, except as $ 100,000 01.henvise sr.ar.ed in the Decbnit.ions p,1gc or endorsed her:::after (20) F'.xpcditing Expense S 25,000 3. DEDUCTIBLE a. :F:.1ch subn1ined cb.irn. fo;- loss} d::unage or c.:-:.pcnse :1rising out of :1ny one- ''c,ccurn:ncen ar the insured location, as identitied by its "Property kkntification Number'·, shall be adjusted as um, cbim. "fhe 1 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 123 of 197 Property Policy Company will not pay for loss, damage or expense under ,1ny covernge unr.il t.he amount. of the covered loss or damage exceeds the deductible amount indicakcl for t.hlt coverage in the Declarations page or endorsed hereafter. The Company "~ll then pay the ,m1ount of covered loss, damage or expense in excess of tbe applicable deductible amount, subject. to the applicable limit. or sub-limit indicated in the Declarations page or endorsed hereafter. b. E t.\VO or more deductible amoums apply to a claim at. a single location, r.he tot.al r.o be deducted sball not exceed the largest deductible that applies, with such larger deductible being applied to the entire loss at the insured location. 4. LOSS PAYABLE Loss, if any, shall be adjusted w.it.h and payable to the specific Named Insured, through Claims Adjusting Group. The Narned Insnred's receipt of loss payment shall constitute a release in full of all liability under this policy with respect to such loss. 5. TERRITORY This policy covers insured locations w.ithin the fifty stat.cs of the United States of America, :md the District of Columbia. 6. COVERAGE Except: as hereinafter excluded, this policy covers the folk,wing described property .including the actual Loss of Income sustained by the Named Insured at: location(s) described in the applicable Dcclarar.ions page issued t.o the Named Insured a. (1) Real Property The interest of the Named Insured in all real propeny, including imprc,vemcms and betterments, foundations and suppons, flues, \viringand plumbing, owned. used, o.r intended for use by the Named lnsurtcl, or hereafter constructed, erected, or installed. If not covered by other insurance: (a) ,1dclirions under construction, alterations and repairs to "buildings" or structures and (b) rnmeri,1ls, tx1uipment, supplies and temporary structures, on or within HlO feet: of r.be Jocarjon described ii, the Declararions page, used for making additions, alterations ot repairs to the "building$'' or structures. In the event of .loss or damage, the Company :1gre,:s to accept and consider the 0famed Insured as sole and uncondition:ci owner of improvements and bet.terrnenr.s, notwithstanding any contract or leases to the contrmy. The interest. of the Named lnsurcd in '.he Re;il Propeny of others in :he Named lnsured's care, custody, or control, and tht Named Jnsun,cl's liability imposed by iaw or ,1ss11med by writ.ten contract for such property. Contractors' interest in real property is covered 1.u the extent of the Named Insured\ liability imposed by .law or assumed by written contr:icr._ Person,1i property owned by ,he N,uncd :Insured :.hat is u:;ed to nninrarn or sc1Y1ce the (~buildingsn or structures o.r the pretniscs~ includin,g fire cxr.inguish1ng CL]uip1ncnt, outdoor furnin1rt:, floor covering-s, and a_ppliance~ used for rcfriger~u.in.?) \:-cnt.ibtlng) cooking> dishwashng or laundering. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 124 of 197 FALLS LP,KE INSURANCE COMPANIES Property Policy (2) Business Personal Property The interest of the Named Insured in all business personal prope11:y, including "Fine Arts" and "Electronic Data Processing Equipment" and "Electronic Data Processing :i\kdia", located in or on the "described premises" or within 1,000 feet of r.he "described premises", consisting of furniture and fixtures, machinery and equipment, computer hardware :ind media and "Fine .Arts". At the option of the Named Insured, personal property belonging or in use by the Named Insured's officials, employees and volunteers while at the "described p1:emises". The int.crest of the Named Insured in the personal property of or.hers in the Named lnsured's care, custody or control, and the Named Insured's liability imposed by bw or assumed by written contract for such property. b. Loss of Income (1) This policy is extended to cover the actual Loss of Income sustained by the Named Insured resulting directly from the necessary unten::mtability caused by direct physical Joss, damage, or destruction by any of the perils covered herein during the term of the policy to real or personal property as described in clause 6. a., but not exceeding L.1-ie reduction in income less charges and expenses which do not necessarily continue dur.ing the period of umenantability, not to be limited by the expiration date of this policy. For the pmpose of this insurance "income" is defined as the sum of: (a) The gross rental income from rJw rented portions of such property according to bona fide leases, contracts or agreements in force at the time· of loss; (b) The fair rental value of any portion of the property occupied bv the Named Insured; and, (c) Income from loss of monthly condominium frts. but only if srntt-d m the Declarations page Less non-continuing ch:irr:,ies and expenses. (2) For purposes of determining the loss payable for Loss of Income, the period of indemnity i~ defined as: (a) The period from the time of direct physical damage insur.:cl by this policy to the time when, with due diligence :uid dispatch, physiolly dam:.ged "buildings'' could be: (i) repaired or replaced, and (il) business opcrat1c,ns could have cc,1nrncnced, nor limited by the: expiration date (,f this poiic\. In nn e,·cm will rh: period of indemnity exceed twenry--four (24) months from r.hc dare ,,i Iris$. (.3) For purposes of deren11ining rh:.:: lu~s p11y-;1hk- for :-tl!c-r:nions (,r :1<.ldir.iuns t.u L'Xi51ing pff,pcny and for proptrty under the course or crnistruction. rhc n:nml value will be ck-tt-rrnirn:d from: Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 125 of 197 FALLS LAKE INSURANCE COMPANIES Property Policy (a) The period of time of direct physical damage no: excluclecl by th.is policy. when the property would have been completed if the direct physical loss or dmnage had not occun:ed, r.o the time when, wirb due diligence and dispatch, physically damaged alterations, additions or "buildings'' could be: (i) repaired or replaced, :1nd (ii) business operations cot~d hwe ccnnmenced had no physical damage occurred to the covered propc·rty. (4) Tt,e period of interruption: (a) will include that period for which physically damaged or destroyed building materials and supplies are repbced, and (b) the additionai' time required for the demo lit.ion and removal of debris. (5) Expense to reduce loss: This policy also covers such expenses as are necessarily incurred for the purpose of reducing any loss under this policy. Such coverage, however, shall not exceed the· amount by which the loss under tl1is policy is thereby reduced. (6) Experience of the business: In dctennining the amount of.income covered hereunder, due consideration shall be given to the rental experience before the dare of damage or clestrnction and the probable ,xperience thereaftet had no loss occun:ed. (7) Extended Period oflndemnity This policy covers the actual Joss of incorn.e su$rai.nc:.d chuing r.be period that begins on the date the property is actually repaired, rebuilt or replacc:cl and ends on the earlitr of: (a) "Jbe date the property could, with clue diligence and dispatch, be re-ocrnpied on the same or equivalent rental terms and conditions that existed prior ro such loss or damage; (b) 180 days after the clme the properry is actmi.ly repaired, rebuilt or replaced. (8) Special Exclusion 171.is section of the policy docs not insure :igainsr ,my .increase of k,ss which may be occasioned by the suspension, lapse. or crncelbt.ion of ,my lease, lic,nse, com.ract, or orckr nor for any increase of loss clue to interference at the N,uned Insured's designated premises by strikers or other persons witl1 rebuilding, rqxii,ing, or replacing the property damaged or clC'stroyed, or \'\,1th the resumption of c,.nir..inu,,tion of bmi.ness, or \\·ith the re-occup,mc\' of the premises. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 126 of 197 Prope:dy Policy c. Extra Expense Ex:rn Expense means reasonable and necessary expenses .incurred by the Named Insurtcl during the period of interruption tbat the Nam.eel Insured would not h:we incurred if there had been no direct physical loss or damage to property caused by or resulting from a peril insured against. Extra Expense does not change, add, or ot.hef\vise alter the limirs of liab.iliry as set forrh in the Declarations page or in Clause 2. b. as set forth herein. (l) TI1e Company ,,ill pay necessary Extra Expense to avoid or minirni1.e the suspension of business and to continue operations: (a) Ar. the "described premises"; or (b) At replacement premises or at temporary locations, including: Relocation expenses; and, Costs to equip and operme the replacement or tempornty locations. (2) The Company will pay neces,;ary Extra Expen,;e to nunimize the suspensi,:,n of business if the Named Insured cannot continue operations; (3) The Company will pay necessary Extra Expense cu repair or replace any property to the extent.it.reduces the amount ofloss that otherwise wouicl have been p,1yable under this policy. to die extent it reduces the amount of ]o$s that otherwise would h:rve been payabk under this policy. (4) Tenant Relocation Expen$C This policy is extended to cover relocmion expenses incurred by the Named Insured-to relocate residents, tenants or lawfui occupants to other li-ving (Juarters .in the shortest possible time ,vhen remed space or living qu'.lrter(s) at a described location arc made uninhabitable as a direct result of physical loss or darn;,ge from a ptril insured by this policy. (a) Coverage is limited to the reasonable and necessarv expense of: (j'i Packing, sorting, and tn1nsport~ui(,n co~r frJr pcrson:11 pff1perty; (ii) Reestablishing new utility st:nc.icc-s, .less refunds from discominuc:d services, at. the dan1agcd loc:ujon; (iii) Searching for new living qu:mers; (iv) Disconnecting and rc·connecring fo:rnrc-s ,,nd eciuiprnt:nt: ,11d, (y) Sr.c,r:1gc cost:s \vhik :1\v;1lring posse~5ion of other living qu;1rt·cTs or restC>n:1tio11 of existing qtrnrt:.:-rs. (b) .No coverage is provl<.kd for: Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 127 of 197 FALLS LAKE INSURANCE COMPANIES . P:ropel'ty Policy (ii) Security deposits or ,:,r.her p:1yments made to the landlord or lessors of the new living quarters; (iii) Down paymems, legal fees and closing costs for the purchase of new living quarters; or; (iv) Loss resulting from Off Premises Services Interruption, Interruption by Civil or ]\-filiraty Authority, or Ingress/Egress txcept as otherwise provided in Clause 6 d. (l), (2), and (3). The limit of liability will not exceed the applicable limit of insurance shown 111 the sublimits of Clause 2.b. d. Provisions Applicable To Loss of Income and Extra Expense (I) Off-Premises Services Inrerruption This policy is extended to cover the acr.ual loss susraincd and necessary Extra Expense incurred during the period of time when, as a direct result. of physical damage within five (5) miles of the premises by a peril insured against, electrical, sttam, gas, water or tekphon_e services to the "described premises" are imen:upted. (2) Imerrnpt:ion by Civil or l'viilitnry Authority This policy is extended to cover the :,crual loss sustained and necessary E.xtra Expense incurred during t.1-ie period of time when, as a direct result of physic:1I damage within five (5) miles of tl1e premises by a peril insured against., access re, tl1c "described premises" is prohibited by order of civil or military autbo1ity. 111e maximum period of indemnity in respect of tlus extension shall not exceed 30 consecutive days from the date of that order. 111is policy is extended to cm·er d1e actual loss sustained :md necessary Exn:a Expense during the period of time when, as a direct result of physical damage within Eve (5) miles of the prernises by 11 peril insured against, ingress t0 or eg1·ess from tl1e ·'described premises" is r.hereby prevented. 111e maximum period of indemnity in respect of this extension shall nor exceed 30 consecutive days. e. Accounts Receivable Accounts receivable arc defined as: ( j) All sums due to tl1e Named Insured from customers, provided die Named lnsured-is unable to effect collection thereof as the direct. tc:sult of loss or danngc r.o rc:cords of ;iccounr.s receivable; (2) Collection expense in excess of normal colkctiun cost and rn:1de necessary because of such loss or damage; and, Oth~r expenses, wht:n reasonably incurred by th.:: N,1med lnsmc-d in re-est:iblishing records of accoums receivable following such ioss ur darn:1g,·. For the purpose of this insurance. credit card comrxmy ch;irgc· media sL1ll Ix deemed m n:pn::,t'nt sums dtk the Narnt'd Insmed from customers, tmtil such cb:ir~!C mt'.di,1 is ddin:red t() the cTedit card C<"1rnp,1ny. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 128 of 197 Property Policy \Vhen there is proof that a loss of records of accounts receivable has occurred, bur the Named Insured cannot more accurately establish the total amount of accounts receivabie outstanding as of the date of such loss, such amount shall be computed as follmvs: (a) The monthly average of accounts receivable during the bst available rweive months shal.l be adjusted in accordance \vit.h rhe percentage increase or decrease in the twelve montl1s average of monthly gross revenues which may have occurred in the imerim; ) (b) The montl1ly amount of accounts receivable thus established slull be fun.her adjusted in accordance with any demonstrable v::iri,rnce from die average for the pc1nicular momh in which the loss occurred, due consideration also being given to the normal :f:lucrnations in tl1e amount of acct)nnt.s receivahle widlin the £seal month involved. I There shall be deducted from the total amount of accounts receivable, however established, the amount of such accounts evidenced by records not lost or damaged, or otherwise established or collected by the Named Insured, and an arnount. to allow for probable bad debts ,vhich \>muld normally have been uncollectible by the Named Insured. The lin1it ofliability ,vill not. exceed t.he applicable limit. of insurance shovm in the sub.Emits of Clause 2.b. f. "Electronic Data Processing Equip1nent" and "Electronic Data Processing lvledia" The following terms and conditions shall apply to elecu-onic data processing coverage in addition to those terms and conditjons elsewhere in r.his policy form. In the event any of the folkrn:ing i$ in con flier. with terms and conditions elsewhere in this policy form, the following terms will supersede any oG'ler: (1) The following is covered as part of Business Personal Property: "Elccrrnnic Dm:a Processing Equipment" and Electronic Data Processing 1\-Iedia" including the informa:ion recorded therein for direct loss or damage and for any result.'1nt Extra Expense, (2) The following exclusions me added to this policy' form. This policy does not insure: (a) .Loss or damage caused by error in machine programming; (b) Loss or damage caused by or arising out of infidelity by an tmployee of the Named Insured. A willful act of malicious intern or damage caused by un:mt.ho1ized enuy shall be deemed not: to be an act of infidelity and shall be covered under ,his policy; !}) How loss is settled: (a) "Electronic Data Processing E~1uipment" and "Electronic Data Processing :\kdia" and infi)rrnarion therein; The measure of recovery shall be tht cost of replacement or reproducion with other of like kind and quality; if not replaced or reproduced the Company will pay the blank vaiue of the media. The necessmy exr:ra expense incurred by the :\:,uned Insm·ed in orckr tO cdnt.inue as n FAL.LSLA:KE INSURANCE COMPANIES P:rope:rty Policy operation following loss or damage to propeny covered under this section of the policy by a peril not orhenv:ise excluded, whtther or not such Extra Expense reduces r.,\.ie ,imount of loss that would have otherwise been payable under the business interruption section of tbs policy. Ho\vcver, no payment shall be made under t.½is section if the sarne is otherwise collectible under the business interruption section. g. "Fine Arts" Coverage is hereby provided as part of Business Personal Property for "Fine Arts" which are ei1J1er the "Fine Arts" of the Named Insured or the "Fine Arts'' of others in custody of the N,imed Insured while at the locations designated elsewhere in th.is policy (if any) or anywhere. else ,,1thin the territorial definition of this policy temporarily, and while on exhibition. In the event of the total loss of any article or articles which are :1 part of a set, the Cornpany agYe.e.s t0 pay the Named Insmed tl1e fdl amount of the value of such set, as specified in the Declarations page, and the Named Insured agrees to surrender the remaining parts of the set t0 the Company. The limit of liability for "Fine Arts" ,vill not exceed $l00,000 or the Business Personal Property Limit, wbcheve.r.is t..he lesser amount. h. Valuable Papers and Records TI1is policy covers Valuable Papers. The following terms and conditions shall apply, as well as those tenns and conditions elsewhere in t..h.is policy form: "Valuable Papers and Records" are defined as ,vritten, printed, or otherwise inscribed documents and records, including, but not limited to, books, maps, films_, drawings, abstracts, deeds, mortgages, micro-inscribed documents, manuscripts and media but not including money and/ or securities. This extension does not apply to valuable papers and records which exist as "electronic chrn processing media." 111c limit ofliabifay will not. exceed the applicable limit. ofinsurnnce shown in the sublimits of Clause 2.b. . ' i. Emergency Vacating Expense J'bs policy is extended to cover the reasonable. expenses incurred by the Named Insured-when an authorized governmental agency or other similar author.ity orders t.he emergency evacuarion of residents, tenants pr lawfui occupants from an insured "building" as a result of an immedimely impending insured peril L½at thre,itens imminent physical danger or loss of life to such occupants, but. not to exceed tl1e applicable limit of insurance shown in the policy. No coverage is provided if the v:-tcating resulrs from a phnned evacumion driJL evacuarion of any resident. because of a medical condition(s), or a false alarm. The limit. of liability will not exceed tl1e applicable limit of insurance shown in the sublimits of C::husc 2.b. j. Locks and Keys Th.is policy is extc:ncled to cover the reasonahk and necessarv expense incurred Lw th:, :\:amed lnsurd fur replacing iucks and keys resulting from insured ph.-sical loss •Jr damage. Covernge includes the actual cosr to: Replace; Adjust, Reprog:r.irn Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20 Page 130 of 197 FALLS LAKE INSURANCE COMPANIES Property Policy Locks r.o accept new keys or enu:y codes. The limit of liability will not exceed the applirnble lirnit of insurnnc k. Increased Tax Liability for Rental Income This policy is extended to cover fr1ereased tax liability incuned by the: Named Insun,d-:1s a direct result of direct physical loss or damage insured by this policy to property not exduded by rhis policy on r.he covered loss of rental income portion of a loss recovery, if the tax liability is great.er than the amount that would have been incurred had no loss occurred. Tbs policy will covc-r only the increased rnx liability for r.he profit portion of the rental income loss. The limit of liability \vill not exceed the applicable limit of insurance shown in rl1e subbnir.s of Cl,'luse 2.b. I. Arson Reward Tbs policy is extended to cover pa71nent of any reward offered on the Named Insured behalf for information that leads to conviction of r.he perpetuator(s) of arson (fin?) and vandalism to insured property that sustains physical loss or damage insured by this policy. The Company's total liability for any one "ocrnrrence'' will not exceed the amount set forth in Clause 2.b. Regardless of the number of infonnanrs providing infomrntion that. leads tn a conv1Ct1011, r.he Company's payment of Llns reward will not exceed the amount set forth in Clause 2.b. m. Back Up or Overflow of Sewer or Drains Cove.rage is extended for l.oss or damage that. results from back up or nverflow of sewers or sump pump wells or similar devices designed to prevent over£low seepage or leakage of subsurface watc-r rJ1at occurs during the policy period ..Howevei:, no coverage is extended for loss or damage that. results from sewer or sump over£low resulting from "Flood". The Company will not pay more under this extension than the applicable sublimir stated in this policy as set forth in Clause 2.b. n. Business Personal Property While Off Premises or In Transit 'll1e policy is extended to cover Business [)ersonal Propeny whik: it is in the cours<.: of transii wir.hin the Policy Territo1y or at premises thm are not described in rhe Dechrmions page. The limit of liability for Business Personal Proptrty \X·'hi.k Off- Prernises or In Transit will nc,t exceed $l0l\000 or the Business Personal Property Limit, whichever is the lesser ,1moum. 7. PERILS EXCLUDED a. Th.is policy does not insure against Joss or damage rnused directly or indirectly by. to, or resuiting from any oft.ht following. Loss or damage is excluded regardless of any cau:,<.: c,r event wher.htr <:,r not insured under this policy r.hat contribmes concurrently or in :my se,jU('.11CC: ro rhc: loss c,r damage. ('l) An]' fraudulent or dishonest act r,r acts u,rnmincd b\· 1hc \:amed Insured or :my of rh(' N,1111ed lnsured's employees me:ming only dishonc-sr c,r fr:rndLrk-m :lels commiaed by rhe Named In,ured or ,he N:uned hsured's c·mployt:e:; with the manifest iment ru: (:l) c:msc- the N:imed lnsured rr, susrain such lo~s; and Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 131 of 197 FALLS INSURAf¾!GE COMPAN P:rope:rty Policy (b) obtain financial benefit for the Named Insured, Named lnsured's employee, or for ,111y other person or orgarjzation intended by 1:J1e Narntcl lnsurd or the employee to re'~eive such benefit, ot.1-:ier than salaries, commissions, fres, bonuses, promotions, awards, profit sharing pensions, or or.her employee benefits earned in the normal course of employment; (2) Nucle.u: reaction, nuclear radiation, or radioactive cont.aminar.ion. all whether controlled or uncontrolled and whether such loss be direct or indirect, proximate, or remott, or be in whole or in part caused by, comribut.ed to, or aggravated by r.he peril(s) insured against in this policy except~ (a) If fire ensues, .liability is specifically assumed for direct loss by such ensuing fire but does not include any loss due to nuclear reaction, nuclear radiation, or radioactive contaminntion; (b) The Company shall be liable for loss or damage mused by sudden and accidentnl Radioactive Contamination including resultant radiation damage for each "occurrence" frorn material used ot sr.ored or frrnn processes conducted on insured premises provided at: the time of loss there is nei.ther a nuclear reactor capable of sustaining nuclear fission in a self-supporting chain reaction nor any new or used nuclear fuel on the insmed premises; fa) (3) \ , Any hostile or warlike action in time of peace or war, including action rr1 hindering, combating, or defending against an actual, impending or expected :itt,1ek: by any government: or sovereign power (de jurc c,r de facto) or by any authotity n1aintaining ot using 1niJitaty, naval, Cff alr forces; (ii) or by rnilitary, naval or air forces; (ii.t") \ , or by an agent of any such government, power, authority or forces; (b) Any weapon employing atomic fission or fusion; (c) A.ny rebellion, revolution, civil ·war, usurped power, or act.ion taken bv governmental authority in hindering, combating, or defending against such ''occurrence··'; (d) Any seizure or destruct.ion by order of public authority. except destruction by order of public authority, to prevent the spn:-acl of, or to orhe1wise contain, control or minimize loss, damage' or destrncr.ion which occur$ due trJ ,1 peril in:,Ltrcd ag;.inst under this policy; (e) 1\ny risks of contrnband or illegal rr.1de. (4) Named \Vindstorm, including hurricane and or tropic.11 storm as designated by the Nai:ic,11.11 \\'.feather Service, in "Tier l and 2 counr.ies", as forrher de-find in r.his pc,licy. This N.uned \>?indstorm exclusion in "Tier I and 2 counties'' also excludes loss or damage cmsecl by w:uer in :1ny state, or n11r\ or s.ieet, or sno\v, or h:-til, or ~and, du~r or :lny other subst:u1ce, rnar.crial or object rbat is etrried, b.lown, dri,"cn or mhcrwise r.ranspr,rrcd by nnro or imo rhc prnpcrry insured in "Tier l and 2 cmmt.ics" as a resnit of the :\arnnl \'\-'indstorm. Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20 Page 132 of 197 Property Policy (5) "Flood", as defined herein or spray resulting from "Fk,c,d", whcrhcr driven by ,vind or not, mudslide or mud-flow; water on or below fr1e surface of the ground including that which exerts pressure on or flows, seeps or leaks through sidewalks, driveways, frmndations, ,vails, basements or orJ1er floors, or through doors, windo?.'S or otl1cr openings in such sidewalks, driveways, foundations, walls or floors. However, th.is exclusion shail not apply ro loss or damage caused by ensuing fire, theft: or explosion nor. otherwi~c excluded by the pc,licy. (6) "Earth J\fovement" including loss or chmagt: caused by, resulting from, contribtm:d to, or aggravated by any natural or manmadc "cad1 movement", including but not limited to earthquake, landslide, mud flow, volcanic eruption, eartl1 sinking, subsidence, earth rising, or earth shifting; However th.is exclusion shall not apply to loss or da&mge mused by ensuing fire, theft, sprinkler leakage or explosion not. otl1erwise excluded by the policy. b. This policy does not insure against loss or damage caused by the following: (1) P;ult.y, inadequate or defective design, pbnning, developmellt., surveying, snmg, specifications; faulty materials, faulty workmanship or maintenance; ·unless m1 insured loss ensues during the policy period as set forth in the Declarnr.ions 1nge and 1hen this policy shall cover for such ens rung loss or damage; (2) Electrical in.jmy or disturbance to electrical appliances, devices, or w:irin.g caused by electrical currents artificially generated; unless fire or explosion ensues and then r.his policy shall only cover for such ensuing loss or damage occurring during r.he policy period as set frirth in r.hc Declarations page; (3) Iviechanical breakdo\Vll occ1u·ring during the poli~•/ pctk}d :1s set fon.h in the l)c:datations page; (4) Explosion, rupture, or bursting of steam boilers, steam pipes, steam turbines, c,r steam engines O\Vned or opernted by the Named Insured; unless an insured loss ensu<':s during the: policy'period as set forth .in tl1c Declararfons page and then this policy sha.U only cover for such ensuing loss of damnge. The Company ,vill also pay for loss or damage during the policy period as set forth in the Declarations page caused by or resulting from the explosion of gases or fod within the funncc of any fired vessel or with.in the flues or passages tlu:ough which the gases of cornbustion pass; (5) Loss or damage caused by or resulting from vermin, bats, .insects (including bm nm Limited to termites and bed bugs), inherent. vice, latent defect, contamination, rust, dampness or dryness of the atmosphere, smog, extremes of temperature, wear and tear, cumulative effects of smoke, vapor, liqLtid, dust or gradual det.eriorarion; unless an insured loss ensues during the policy period as set: forth in t.be Dechrar.ions page and rhen this policy shall only cover for such ensuing loss or clarnage; (6) Settling or shrinkage of walls, floors or ceilings; unless an insured k,ss ensues during rhe poiicy period as set forth in the Declarations page and rhen this policy shall only covc:r for such ensuing loss or darnrrge; (7) Loss of market; darnage or deteriorntion occurring during the policy period as set forth in the Dcclarntions page arising from any delay; (8) Unexplained loss. mysterious disappearance, or luss or shortage disclosd un uking invenr.ory, voluntary parting wir.h tir.lc: or possessi<,n r,f propcr1y; rnirnpprop1i11ic,n; conversion occurring during the poilcy pcrjod ,1s set forth in T.!H: l)cclan1ti()J1S page; Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 133 of 197 FALLS LAKE INSURANCE COMPANIES P:rope:rty Policy (9) Rain, ~now, ice or sleet occun:ing during the policy period as set forth in r.hc Dedarntions page to personal property in the open; (HJ) Continuous or repeated seepage or leakage of water, or tl1e presence or condensation of humidity, moisture or vapor, that occurs over a period of J 4 days or more; (l 1) \vater, other liquids, powder or molten material th:1.t leaks or flows from plumbing, heating, air conditioning or other equipment (except fat protective systems) caused by or resulting from freezing, unless: (a) A diligent effort is made to regularly rnainrnin heat in the "buikling" or structure; or, (b) The equipment is drained and the supply shut off; (12) Terrorism, including action taken to prevent, defend against, respond to or retaliate against. terrorism or suspected terrorism. Terrorism is defined 11s any act, involving the use or threat of force, violence, dangerous conduct, interference with the operations of any business, government or orJ1er institution, or any similar act, wben tl1c effect or apparent pmpose is: tO influence or instill fear in any government (de jnre or de facto) or the public, or any segment of ei111er; or to furt11er or to express support. for, or opposition to, any political, religions, social, ideological or similar t;.,1Je of objective or position;. (13) Loss or damage caused by or resulting from human and/ or animal remains at, in or surrounding tbe insured location as identified in tl1e Declarations Page by ir.s "Property Identification Number". ii.ny such loss or damage resulting from human and/ or animal remains are specifically excluded from any Pollution Cleanup or Debris Removal limits. Such loss or damage is ,vholly excluded even if the human and/ or anim:1] remains are the result of a covered loss. Neverr.heless, if fire is not exclnded by this policy and a fire arises directly or indirectly from human or nnimal remains, any Joss or damage insured under this policy arising directly from that fire is insured, subject t.o the provisions of this policy. c. TJ:,Js policy does not cover Joss or damage caused by, resulting from, contribnttcl to or made worse by acr.ual, alleged or threatened release, discharge, escape or dispersal, seep:1ge c,r m.igrat.inn of "contaminants or pollutanrs" all whether direct. or indirect, pro:-..imar.e or remc,tt or in whole or in pan caused by, contributed to or aggnvated by :my physical darrrnge insured by this policy. Neverr.heless, if fire is not excluded by this policy and a fire :irises directly or indirectly frc,m seepage or contamination or pollution, any loss or darnage insured under this policy arising directly from that fire .is insured, subject. t.o the provisions of this policy. ]l1is exclusion will not ,1pply when loss or damage is caused directly by the foilowing specified causes of loss: fire, lightning, aircrafr impact, explosion, riot., civil commotion, smoke, vehicle impact, windstorm, hail, vandalism or malicious mischief. Th.is exc.lusion sh,111 also not ,ipply when loss or dam,1ge is caused directly by leakage or accide11t:1! discharge from amom,u.ic fire protective systems. d. Thi, poJjcy does not covc:r: (1) ..t\sbestos, clioxln or polychlorinared hiphenyl Q:ercinafier refe1-red to a~ •·j\Lltl·rl~ib'') rc::n1u\·al frorn any goc,rl, product. or strucuu-e unk:ss rhc asbc~rc:~ ls itself d:1n1;.1ged by fire> lightning, aircraft impact, cxplos.ion, riot, civil commotion, srnuk::., vehick- irnp,Kt, windstorm or hai.l. ,,andalism, rnaliciou, niischief, kak:ige or :iccidcnral cbcl1:1rgt'. frorn mnm1:1t.ic fin: prott"Ctive systc1ns; Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 134 of 197 FALLS U\KE INSURANCE COfvlPANlES P:ropexty Policy (2) Demolition or increased cost of reconstruction, rep:iir, debris removal or loss of use necessitated by the enforcement of any law or ordinance reguLlting such ]'Vfoterials; Any govemmental direction or re(1uest declaring that such Materials present in or part of or utilized on any undamaged portion of tlie Named lnsured's property can no longer be used for the purpose for which it was int.ended or installed and must. be removed or modified. The exception to exclusion 7 d. (1) above does not apply t.o payment for the investigarion or defense of any \oss, damage or any undamaged portion of the Named lnsured's property that can no longtr bt: used for the purpose for which it was intended. L. The Cornpany ,vill not pay the expense to: (1) Extract "contamin.ants or pollutants" from debris; or (2) Extract "contaminants or pollutants" from bnd or water; or (3) Remove, restore or replace contaminated or polluted bnd or water; or (4) Remove or r.ranspon any property or debris to a site for storage or deconr.aminarion requ.irc:d because the property or debris is affected by pollutants or conuminants, whtther or not such rc:moval, transport, or decontamination is required by law or regulation. It. is a condition precedent to recovery under this extension that the Company shall have paid or agreed to pay for direct physical loss or damage to the property insured h.:rc:under and that the Named Insured shall give written notice to the Company of its intent to claim for the cost of removal of debris or cost of clean-up nor. later than twelve mondlS after the date of such loss or damage. f. Notwithstanding any of the provisions of this policy, t11e Company shall not be liable for loss, &image, costs, expenses, fines or penalties incurred or sustained by or imposed on the Named Insured at tl1e order of any government agency, court: or other autl10rity arising from any cause whm.soever. g. 'J11is policy does not cover unless othenvise provided in Clause ·12: (1) Loss or damage caused directly or indirectly by mold or od1er fungi, wet or dry rot, or bacteria; (2) The costs associated with the enforcement of any ordinance or law which r<:quires the Named Insured or others to rest for, monitor, clean up. remrnce, conrnin, treat, dctox.ify or neutralize, or in any way respond to or assess the effects of mold or other ti.rngi, wet or chy rot, or bacteria; (3) Any costs, expenses, fines or penalties incurred or susr.ained by or imposed on rhe Named Insured at the order of any government agency, court or other authority arising from any cause whatsoever. This r:nold or other fungi, wet or dry rot, or bacteria exclusion applies whether or n()t the loss event results in widespread damage nr affects a subst:mr.ial :i.rca. h. Limirntions This policy docs not insurt: loss or damage to: CI) 'fhc .lnrcrjor oE any '•buildinf( or srrucr.urc c1uscd by or re~uhing (rc,n1 r:-1in, sno,v, sicc:t, ice, sand or dust, whether driven lw wind or nut, unks;: Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 135 of 197 Property Policy (a) The "building" or structure first susr.rrins d,unage by a perii insured ,1_!:,e.:tinsr r.o .its roof or walls through which the rain, snow, sleet, ice, sand or dust enters; or (b) The loss or damage is caused by or results from tbmving of snow, sleet or ice on the "building" or structure. 8. PROPERTY EXCLUDED Tt1is policy does not cover loss or damage to: a. J'vfoney and s.::curities. The term "securities" shall mean all negotiable and non-negoriablc insu:uments or cc,nr.racts representing cir.her money or other property, and includes revenue and other stamps in current use, tokens, and tickets but does not include money; b. Land, land values or water; J-Iowever, this exclusion shall not apply r.o the cost of resmring or repairing landscaping ,1s provided under the applicable sublimit in clause 2. b. of this policy; c. Growing crops, standing timber, and animals, birds or fish, furs, jeweh-y, 01: precious stones or metals; This exclusion does riot apply to ornamental trees and shrnbs, located on the Named Insured's premises subject to applicable suhlimit in dause 2.b. of this policy; d. \'1/atercrafr, aircraft, railroad rolling stock, spacecraft or motor vehicles licensed for highw,q use; c:. Underground irines and mining property located below the surface of the ground; f. Real or Persorrnl Property mvncd by others unless in the care. custody, or control of the Named Insured. \ g. Bridges or tmmels used for vehicular traffic, reservoirs, dikes, canals ,ind dams; h. Docks, piers and wharves which are not. a structurnl parr 0L1 "building''; Oil or gas wells, platforms, rigs, or structures; Imangiblc property, including without. lirnitation, goodwill and intei.ltctml property of any kind; k. (1) Fixtures, appliances, cabinets, countertops, floor cr.werings, ceiling coverings, wal.l coverings, insr.albt.ions, altern,ions and additions thu. cc,mprise pan of :1 "building", when situated within ponjons of the prernises used exclusively by individu:il condominium unir. owners. However, if the insured condominium association's Conditions, Covenants and Resr.rictions require that the .insured condc,minium associat.ion .insure said pwpcny, thrn said property wili be insured under this policy for the imeresr of the Named Jnsnn::d condominium associmion, but onlv for the ori,:inal value and cual.itv that existed at. the l~mnat.ion of the condominium as;c,ciat.ion exc:pr. as otht:.rwisc ;:a:etl in rbc Decbrnt:ions Page: ,md (2) Personal prorx:rr.y owned by individual cr,ndominiurn unit owners. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 136 of 197 FALLS LAKE INSURANCE COMPANIES Property Policy 9. VALUATION At the time ofloss, the basis of adjustment unless otherwise endorsed herein shall be as follows: a. Real and personal property not otherwise valued below, shall be vaiued at the cost of repairing or replacing (,vhichever is the lesser amount), at tl1e time of loss \\~thout deduct.ion for depreciation, with another building or personal property of comparable material and quality for the same use or occupancy. b. The fotlO\ving property, unless otl1erwise endorsed herein shall be valued at tl1e time ofloss as follows: (l) Property of others - the m1;1ount for which the Insured is legally liable, but not exceeding replacement cost; (2) Unrepairable electrical and mechanical et1uipment, including "electronic data processing equipment'', the cost to replace v:ith ec1uipment that is functionally equivalent to that damaged; (3) Trees., shrubs, plants :1nd lawns will be limited to standard local nursery stock; (4) "Fine Arts" shall be valued at the lesser of: (a) The cost to repair or restore the article to the condition that existed immediatdy prior to tl1e loss; (b) The cost to replace the article; or, (c) The value designated for the article on t..11.e schedde of "Fine i\rts" on file \vith tl1e Company; (5) Valuable Papers and Records will be valued at. the cost r.o replace or restore tl1e lost information on valuable papers and records for which duplirntes do not exist. The Company will also pay for the cost of blank material for reproducing records (whether or not duplic:ues exist), and (when there is a duplicate) for the cost of labor to trnnscribe ur copy the records. (6) \Xiith respect to "buildings" which are declared by a local sr:.1te c,r federnl authority tO be of historical significance or of historical value, such rebuilding, repairing or replacement shall be wit.½ material, workmanship, processes, technologies :md designs publicly availabk within the cui1·ent marketplace and shall not include the cost of creating our.dated, archaic or antiquated materials, workm:mship, processes, technologies or designs; · (7) Tenant's Tmprovements and 13ettennents: (a) If repaired or replaced.at the expense of the Named Insured within a reasonable time nfrcr Joss, the replacement cost of r.he d,unaged or destroyed improvements and betterments; (b) ff not rep,1ited or replaced at r.hc expense ofrhe Named Insured \\'it.hin a rc,1sonablc time after loss, the proportion of thc- origin,1] cost ,n the rim,· of insraihrion of rhe damaged or destroyc·cl property which the unexpired tcnn of tlk lease· or n:-nral ,1grecmem in effect at r.he r.imc: of ioss bc:ars ro rhc· period from rhe tbres such improvc-rnenrs or betterments were made: ro the- cxpir:u.i,,n d:ue of the k,1,,c: FALLS LAKE INSURANCE COMPANIES Property Policy (c) If repaired or replaced or to be repaired or replaced at the ei,:pcnse of od1ers for r.he use of the Named Insured, there shall be no liability hereunder. c. The Named Insured m:ty: (J) Voiuntarily elect to rebuild at another site provided that such rebuilding does no: increase the amount of loss or damage which would otherwise be payable ro rebuild at. the present (2) Submit a claim based on the "Actual Cash Value" of the propeny lost or damaged until the ,1ctual repair, purchase or replacement has been completed. The Named Insured-may still claim the additional coverage which replacement cost provides if notification of intention to do so is received by the Company v.:id1in 180 days after the loss or damage. d. Replacement cost is subject to all the terms, conditions and limitations of the policy (including any endorsements) and the followfr1g additional provisions: (l) The Named Insured must execute repairs or replacement v.~th due diligence and dispatch; (2) The Company will not pay on a replac<:ment cost basis until the lost or d,unaged property is actually rep,ured or replaced. (3) The Company will not pay more on a replacement cost basis than the least of (a) The cost to replace, on the same site, r.he loss ro damaged property with other property of comparable material and quality which is used for the sarne purpose; or (b) The Amount actually speqt by the Named Insured d1at is necessary to repair or replace r}1e lost or damaged property. e. The Company \vill only pay the Named Insured based on a ''financial interest"' or contractual liability in r.he insured property at the ti.me of loss. f. If the: Named Insured-fails to comply \Vith any of the valuation provisions or doe~ not repair or replace r.he property \,~thin two (2) years from the date of loss, the lxisis of the valuation will revc:rr. ro the ".t\crnal Cash Value". "Actual Cash Valne" is defined as the replacement cosr c,f the property at rhe time and place of the loss or damage with proper deduction for depreciation. 10. FIRE BRIGADE CHARGES AND EXTINGUISHING EXPENSES This pol.icy is extended w cover expenses incurred by the Named Insured to replace fire txr.inguishing materials r.hat. are losr., expended or destroyed to the extent of the value of such fire exr.inguishing materials; and for firefighting expenses incurred by or imposed on the Named Insured in connection with con·.red loss or damage to covered property. J:[owever, there wiH be no cover,1gc for charges incurred for false alarm. The limit of liability will not exceed the applicable limit of insurance ~hown in the snblimits of Clause 2.b. 11. POLLUTION CLEANUP AND REMOVAL COSTS i'\()twith:,rnnding rhc provisions <,f Cl.ausc 7.c. or any provision rcspccr.ing scqngc: and/or pollution and/or comarnin:n.ion. and/or debris r<:moval and/ or cost of cleanup, in th<: cn,m of din::cr physinl loss or damage· to the property insured hereunder that is directly caused lw or results from one or more of th,· following causes rh,n occurs during the policy period :1s scr forth in r.he Dc:chr:11.ions !Jag<'": Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 138 of 197 P:rope:rty Policy Ci Fire; [l Lightning; D Explosion; D \Xiindstorm; D Hail; D Smoke; 0 Vehicles; Cl Aircraft; [l Civil disturbance; I] Riot; [l Sprinkler Leakage; D Leakage from fire extinguishing equipment; [l \'{!eight of snow, ice or sleet; Ci "\'{later Damage" except as otherwise excluded in this Policy. This policy (subject otherwise to its terms, conditions and limitations, including but not limited to any applic:.blc deductible) also insures: a. expenses reasonably incur.red in removal of debris of tile property insnred hereunder destmyed or damaged from the location of the loss; and/ or, b. cost of cleanup, at the location of the loss, made necessary as a result of such direct physical loss or dmnage; and/or~ c. cost. of pollution c11anup; not to exceed the policy sub-lirnit specified in Clause 2.b. It is a condition precedent to recovery that the Company shall have paid or agreed to pay fix direct physical loss or damage r:o tl:e property insured hereunder unless such payment is precluded solely by the operation of any cltdnctible and that the Named Insured shall give notice to the Company of intent to claim for cost of removal of debris or cost of. cleanup NO LATER THAL"\J 12 MONTHS AFTER THE DATE OF SUCH PHYSICAL LOSS OR DA.MAGE. 12. LIMITED COVERAGE FOR "MOLD", "FUNGI", WET OR DRY ROT OR "BACTERIA" This poiicy is exttnded to cover, subject to a maximum limit of $10,000 ptr "occurrence" per insurtd location, "loss or damage" directly caused by or resulting from "mold" or "fungi", wet or dry rot, c,r "bacteria" if such "mold" or "fungi", wet. or dry rot, or "bacteria" is directly caused by or results from one or more of rhe following causes that occurs during the policy period: l] Fire; [' Lighming; 17 Explosion; [j \\7indstorm; t; Hail; [1 Sn1oke; [~ Vc.hiclcs; i 1\ircrnft; [: Civil clisrnrbnce; Riot; Sprinkler Le:1kage; Ltabgl'. from fire txtinguishing equipment; \\\:ighr nf snc1,v, lee or sleet; "\Varer D:muge" c:s:cept. as orhcrwise e:s:cludcd in this Pol.icy. Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20 Page 139 of 197 INSURANCE COMPAN Property Policy The maximum total limit. provided by this coverage extension is $10,000 per "occurrence" per loc:uion r1egardless of Ll'.le number or type of coyerages that rnay apply, the number of locations to which th.is ccwerage extension applies, or regardless of the number or type of mold or other fungi, ,vet or dry rot, or bacteria that caused r.he .loss or damage. \Xihen this agreement and any other insuring agreement. or endors,:ment written by the Company applies to the same mold or other fungi, wet or dry rot, or bacteria loss, $10,000 per "occurrence" pe1: k,cation is rhe most the Company will ever pay on a combined ronl basis for all such loss, irrespective of any limit: that :might apply to the underlying cause of the mold or ot.ber fungi, wet or dry rot. or bacteria loss, if any. '111.is amount is not in addition to the limits of coverage for real or personal property or time element coverage as specified elsewhere in d1is policy and is inclusive of all testing, analysis, remediation and reconstruction. Definitions applicable to this section "?-{old" or ''fungi" means: any type or form of mold or milclew; any other type or form of fungus; or any mycotoxin, spore, sctnt or byproduct that is produced or teleased by such mold, mildew, or or.her fungus. ,.:B~1ctcrja'' n1eans: any type or form of bacterium; or any by-product that is produced or released by such bacrerium. H.Loss or datnagen n1eans: Direct physical loss or damages to covered property by "mold", "fungus", wet or d1y rot or "bacteria", including the cost of removal of t..½e "mold", "fungus", wet or dry rot or "bacteria"; The cost to tear out and replact any part of the "building" or ofr1er property as needed to gain access to the "1nokl", "fungus", wet or dry ror. or "bacr.eria"; and The cost of testing performed after rer:noval, repair, replacement or restoration of the damaged propen:y is completed, pnwided there is reason to bcl.i.eve th:it "mold", "fungus", wet or dry rot. or "bact.eri.r"' arc present. 13. DEBRIS REMOVAL COSTS a. The Cornpany will pay the reasonable and necessa1y expense incurred by the Named Insured to remove debris of insured property from a location remaining as the direct result of loss c,r damage insmed by this policy eluting rl1e policy period. Such expenses wiH be p:iid only if reporr.cd to tbe Company in ,uiting within 180 days of the elate of direct physical ioss or darrrngt. b. For this Debris Removal coverage, t.hc Company will pay 25% of: ('I) The amount r.he Company pays fort.he direct physical loss or damage tot.he insured property; plus (2) The deducr.iblc in this policy applicable to that direct rihysio! loss or dam.1ge. c. In no eYent will this Debris Removal Coverage apply to: (1) Co;t$ to extract '~conranlinants or pollutants" fron1 land or ,vater; or (2) Costs to rcmc,ve, restore or replace polluted land or w.ucr. The lirn..ir of liability will not exceed rhe applicable limit of insurance shown in the subLlmits of CLmse 2.b. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 140 of 197 FALLSLAKE INSURANCE COMPANIES Property Policy 14. BUILDING ORDINANCE, DEMOLITION AND INCREASED COST OF CONSTRUCTION a. In r.he event of.loss or damage under this policy that causes the enforcement of any bw or ordinance regulating the construction, repair, or use of property the Company shall be liable for: Coverage 1\. The proportion that the value of the undamaged part of the property bore to the value of the entire property prior to loss; CoverngeB. The cost of demolishing the undamaged property; ' . Coverage C. The increased cost of'repair or reconstrncrion of the damaged and trndamaged property on the same or another site and limited t0 the costs that would h,we been incurred in order to comply with the minimum requirements of such law or ordinance regulating rhc repair or reconstruction of the damaged property on the same site. .However, the Company sha!l not be liable for any increased cost of construction loss unless the damaged property is actua!ly rebuilt or replaced; if the property is repaired or rebuilt it must be intended for similar occupancy as r.he cun:ent property, unless otherwise .required by zoning o.r land use ordinance of law; CoverngeD. Any increase in the business interruption, Extra Expense, rental value and royalties loss arising out of the additional time rtqnired to comply "~th said bw or ordinance. b. 1\dditional Conditions which apply to this extension: If the property is repaired or replaced, on the same or another premises, r.,\.iis policy will not pay more for loss or clam age, including loss caused by enforcement of any Jaw or ordinance, tl1an the least of the following amounts: (l) The amount actually spent to repair, rebuild, or reconstruct the ''building", but nm for more than the amount it would cost to restore the '·building" on the same premises and to the same height, floor area, sr.yle and comparable quality of the original pi:openy insured, assuming th:it such repairing, rebuilding or reconstructing is then perrrjtted; or (2) The Limit of Liability contained ,,~thin this policy; or (3) Ea portion of the property is not n::paired or replaced, due to orclirmnce or law restricting or prohibiting repair or replacement of the "buildin2;' to the same height, floor area of the original properr.y insured, the amount actually spent tc, repair, rebuild, or reconstrnct the "building" and the "Acmal Cash \lalue", of the portion of the property that is not repaired or replaced. The limit of liability will not cxo::ecl the applicable Em.it of insurance shown in the subliinits of Cb use 2.b. 15. EXPEDITING EXPENSE This policy c(,vers the reasonable extra cost of tempornty repair and of expediting the repair of cbrnaged property insured hereunder, including overtime and express freight or other rapid means of rransporration. 16. CONTRIBUTING INSURA1'\lCE This insur:rncc shall be excess of any other conr.ribming insurance. 17. EXCESS INSURANCE Excess insurance is insurance over the limit of bbility scr fonli in rhis policy. The exi~rcnce r,i' such excess in,nrance shall nm prejudice the cm--ern_!c',(' provided under this poiicy nor will it reduce :,nv liabilin' hereuml::r. Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20 Page 141 of 197 FALLS LAKE INSURANCE COMPANIES Property Policy 18. UNDERLYING INSURANCE Underlying insurance is insurance excess of all, or any part of, the deductible and against all or any of Ll-ie perils covered by this policy including declarations of va.lue to d1e carrier for hire. The existence of such underlying insurance shall not prejudice or affect any recovery otherwise payable under this policy. If tl1e limits of such underlying .insurance exceed the deductible amount which would apply in tl1e event of loss under this policy, then that portion which exceeds such a deductible amount shall b;: considered "other insurance. 11 19. OTHER INSURANCE Except for insurance described by the excess insurance clause, by the underlying insurance clause. this policy shall not cover to the extent of any other insurance, whether prior or subsequent hereto in date, and whether directly or indirectly covering the same property against the same perils. The O:impany shall be liable for loss or damage only ro extent of thnt nmount in excess of tl1e amount recoverable from such other insrn:nnce. 20. SUBROGATION .z\ny release from liability entered into by the Named Insured prior to loss hereunder shall not affect tbs policy nor r.he right of the Nnmed Insured to recover hereunder. The right of subrogation against. the Nnmed Insured, and/ or its affiliated, subsidiary, and nssociat.ed companies or corporations, or any other corporation or compnnies associated with the Named Insured through ownership or management, is wnived. ln r.he event of any payment under this policy, L"le Company shall be subrogated to the ext.em of such paymcm to nil the Named Insured's rights of recovery d1erefor. The Named Insured shnll execute all papers required and shall do anythi-ig that may be necessary at the expense of the Company to secure such right. The Company will act in concert with all other interests concerned, i.e., tl1e Named Insured and nny other company(ies) pnrticipnr.ing in the payment of any loss as primary or excess insurers, in the exercise of such rights of recovery. ff any amount is recovered as a result. of such proceedings, the net nrnount recovered after deducting d1e costs of recovery shall be divided between tl1e interests concerned ns if the amount of recove1y has been knmvn pi:ior r.o the Joss. H there should not be recovery, the expense of proceedings shall be borne proportionately by the interests instituting tl1e proceedings. 2'1. SALVAGE AND RECOVERIES \Xihen, in connection wit.h nny ioss hereunder, any snlvage or recovery is received subsec1uent ro the payment of such loss, the loss shall be figured on the basis on ·wbch it would have been settled had the amount of sal\"age or recovery been kno"~1 at the time the loss was originnlly determined. Any amounts thus found to be due either parr.y from r.he otber sbal.l be paid promptly. The expense of all proceedings necessary to such recoveries shall be :1ppon.ioned beiween the inrerests concerned in tl1e r:uio of rheir respective recoveries as finally settled. If there should be nc, recovery and proceedings are conducted solely by the Company, the expense thereof shall be borne by the Comp,1n.y. 22. BRAND OR TRADEMARK In case of dmnage by ,1 peril insured against. to cove.red property bearing a br,rnd or tr:ulem,11:k or which in any way carries or impl.ies ::he guar,mtee or the: responsibility of the manufacturer r,r Named Insured. rhe sak,1gc: ,,,i.Jue of such damag;:cl property shnll be determined after removal at the Company's n:pcnsc in the cust()!llary m,mncr of :111 such br:mds or rradcmarks or other idcn,if-i,ing cluracr.eristics. The· N:mx·cl Insured sh:11.1 have full right to the· possession of all goods involved in any loss under this polin· :ind shall n:rain u,nrrol ol all cbm:1gc:d goods. The .Insured, exercising,, reasf,nablt: discrc:tion, shall he rhc soic judge Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 142 of 197 :FALLS Ll'\KE INSURANCE C0MPANIES Property Policy as to. whether the goods involved in any loss under tl1is policy are fit for consumption. No goods so deemed by the !~sured to be unfit for consumption shall be sold or othenvise disposed of except by the Namc·d Insured or with th<': Named Insured 's consent, but the Named Insured shall allow the Company any salvage obtained by the Named Insured on .my sale or other disposition of such goods. 23. Iv1ACHINERY Tn case of loss or damage by a peril insured against to any part of a machine or unit. consisting of two or more parts when complete for use, the liability of the Company shall be lirnited to the value of the part or parts lost or damaged, or at the Insured's option to the cost and exp<':nse of rephcing or duplicating the lost or damaged part or parts or of repairing the machine or unit. 24. PARTIAL PAYMENT OF LOSS In the event of a loss covered by this policy, it is understood and agreed that. the Company may allow a partial payment(s) of claim subject to the policy provisions and normal Company adjustment process. 25. PROFESSIONAL FEES a. ]bs policy is extended to cover reasonable claims administration and loss data preparation fees and expenses to: Auditors, i\ccount:uus, Architects, · ]3ng1neers, Construction consultants, for producing and certifying parrjculars or details of the Named lnsured's business in order to det.ermine the amount of loss. Expenses must be incurred by the Named Insured in order tO esrn.biish the amount of the loss. b. 11,e Company will not be liable for fees or expenses to: attorneys; public adjusters; appraisers or r.hc Named lnsured's own employees or agents. c. 111e .limit: ofliabiliry will not exceed r.he applicable lirnit of insurance shown in the sublimits of Clause 2.b. 26. APPRAISAL If the Named Insured and the Company fail to agree on the amount of lo~s, each, upon the written demand cir.her of r.hc Named Jnsured or of the Company made within 60 days after receipt of proof of loss by r.he Comp:my, shall select a competent and disinterested appraiser. The appraisers shall then select a comperent and disinterested umpire. E they should fail for 15 days to agree upon such umpire, then upon r.he rec1uest of the N:m1ed Insured or of the Company, such umpire shall be selected by a judge of a court of record in r.he coumy :rnd srntc in which such appraisal is pending. Then, at a reasonable time and piace, r.be apprnisers shal.l :ippraise the loss, stating separntdy the Yalue at the time of loss and the amount of loss. If the appraisers fail to agree, they shall submit r.heir differences tor.ht umpire. An award in writing by any r.wn shall dc:rem:inc 1hc :unount. (11° loss. 'J'he Nam,cl Insured and the Company shall each pay his or its chosen appraiser and shall bear e9u.11Jy the other expenses of the appraisal and of the umpire. Jf there is an :ipprais:11, the Company will srill retain .its right to deny the claim. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 143 of 197 lNSURANC:E COMPANIES Property Policy 27. PAIR A.°'\JD SET Except as provided under Clause 23, in the event of loss ot damage by a peril insured against to :t11y article or artides which are part of a pair or set, the measure of loss or damage to such article or mtides shall be, at the Insured's option: a. The reasonable and fair proportion of the total value of the pair or set, givi.'l.g consideration to the importance of said nrticle or a1tides, but in no event shall such loss or damctge be construed to mean total loss of the pair or set; or b. The foll value of the p:iir or set provided th:it t.1--ie Insured surrenders the remaining article or articles of the pair or set to the Company. 28. ASSISTANCE AND COOPERATION OF THE NAMED INSURED The Named Insured shall cooperate with the Company and, upon the Company's request and expense, shall attend hearing-3 and trials and shall assist in effecting settlement, in securing and giving evidence, in obtaining the attendance of witnesses, and in conducting srur.s. 29. PRESERVATION OF PROPERTY In case of acrnal or imrninent physical loss or damage of the type insured against by this Policy, the expenses incurred by the Named Insured i.'l. taking reasonable and necessary actions for the ternponuy protection and preservar.ion of property insured hereunder shall be added to the total physical loss or damage otherwise recoverable under this Policy and be subject to the applicable deductible and \Vithout increase in t.1--ie limits of liability contained in tI1.is Policy. 30. MORTGAGE CLAUSE Loss, if any, under r.his policy, shall be payable to the mortgagee(s) (or Trustee) of a Named Insured as may be named in the Declarations Page as issued to a Named Insured as interest may appear under all present or fumre 1nort.g:1gcs upon the ptopetty hetein desctlbcd in v..rhich the aforesaid n1ay hrrve an interesr. as rnorrgagcc (o:r trustee), in order of precedence of said mongrrges, and this insurance, as ro the int.ere~t of r.he m(1ttgc1gee (or . trustee) only therein, shall not be invalidated by any act or neglect of the mortgagor or owner of the within described property, nor by any foreclosure or other proceedings or notice of sale relating to the property not by any change in the title or ownership of the property, not by the occupation of r.he premises for purposes more hazardous than are perrnitted by this policy; provided, that in case the mortgagor or owner shall neglect t0 pay :my premium due under this policy, the mortgagee (or trustee) shall, 011 demand, pay r.he same. Provided, also, that the mortgagee (or rrustee) shall notify the Company of any change of ovmcrship or occupancy or increase of hazard which $hall come r.o the knc,wledge or said mortgagee (or trustee) amL unless permitted by this policy, it shaU be not.ed tl1ercon and r.he m01tgagee (or trustee) shall, on dcm:u:d, pcty the prern.ium for such increased hazard for the term of the use thereot; otherwise; this policy shall be null and w1icl. The Company rc·serves the right to cancel this policy at any time as prov:idd by its terrns, but in such rnse this policy shall continue in force for tht benefit only of the mortgagee (or rrustee) for -thirty thys after notice to the mortgagee (or t.rnsr.cc) of such canceilation and sbaH then cease, and the Company shall h:ivc the right., on like notice, to rnncd this agreement. \\/henever :he C:omp:my shall p,1y t.hc mortgagee (or rrust.ee) any sum tor ioss undc:r t.his policv mid sh:lll chirn th:-tt, :1s ff1 the n1ong~1gor or O\Yner> no liabiiity rhercforc existed, th,~. Con1p:1ny sh:111, ro r.hc t·.xtcnt nf such pavmem. be thereupon kgally subrogated to aii the rights of the party to whom such pavmems shali be 1rn1dc, under all sc,curities held as collateral tc, the mong1gc: debt, or rn,1y, ar it.s f,pt.ion, 6,w rhc rnorrgagec: (or rn1s:cc:1 rhc wh.-,lc princirnl due or f() grow due on the rnorrgagc with interest, :md shall thereupon receive :l fuli Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 144 of 197 FALLSLAKE INSURANCE COM PAN JES Property Policy assignment. and trnnsfer of the mortgage and of all such other securities; but. no subrogation shall impair the righr. of the mortgagee (or trustee) to recover the full amount of said mortgagee's (or trustee's) claim. 31. PAYMENT OF LOSS All adjusted claims shall be due and payable not iater than 30 days aft.er presentation and acceptance of proofa of loss by the Company or its appointed represent.at.ive. 32. EVIDENCES OR CERTIFICATES OF INSURANCE Any Evidence of Commercial Property Insurance issued by Cll31\ Insurance Services on behalf of the Company in connection \Vith th.is policy shall be issued solely as a matter of convenience or information for the addressee(s) or holder(s) of said Evidence of Commercial Property Insurance, except where any Additional Insmed(s) or Loss Payee(s) are named pursuant to the Special Provisions of said Evidence of Commercial Property Insurance. In the event any Additional Insured(s) or Loss Payee(s) are so named, this policy shall be deemed to have been endorsed accordingly, subject to all other terms, conditions and exclusions stated herein. 33. CANCELLATION a. Individual Named Insured locations covered under tbs policy may be cmcelled at any time :tc the request of CIB.A Insurance Services by mailing t.o the Named Insured at the address shown in the .Declara,fons page issued for the Named Insured location as identified by its "Property ldentific:1tion Number" \V1-itten notice stating not less than thirty (30) days thereafter such cancellation shall be effective. In the event of non-payment of premium, the number of days is amended to read ten (10) days. b. Tb: mailing of notice as aforesaid shall be sufficient proof of notice and t..l-ie effective· d:tte and hour of cancellation strrrcd in rJ1e notice sball become the end of rJ1e policy period. Delivery of such \Hitten notice either by CIBA Insurance Services or by the Company shall be equivalent to mailing. c. If rJ1e cancellation is requested by CIB.A Insurance Services, or if rJ1e insured propeny is rnkl by the Named Insured, the return premium will be calculated pro rnta meaning t.'1e unearned premium will be returned. cl. If rhe cancellation is requested by the Named Insured for any other reason than the insured property being sold, then rJ1e premium wi.11 be calculated short rnte, meaning thar. 9()';,;, of the unearned premium will be rernmed. 34. JOINT LOSS AGREEMENT It is agreed that in the event the Named Insured suffers a loss at a loc:uion designattcd in both :i l3oikr and .l\lachinery pc,licy and rhis Policy. and there is disagreement between die Boiler and l"vlachinery Insurer and the Company hereunder with respect. to: a. \'(!her.her the: loss was caused by an accident. insured agains: by r.he Boiler :md i\·[:1ehimT)' policy or by n ptcril insured against by this Policy, b. The extent of participation of the l3o.iler and l\fachinery poiicy and this Policy in a loss \Yhich may be insured :1g:1inst, parti:ii.iy or who.Uy, by cir her c,r borh of said policies, then afrcr :1grc:erncm bct\\"ccn the N:mwd Jnsnrc·d , the Boiler lnsmer, and the Comp:my hereunder :1s to ths: mr:tl :unoum or" rhc· loss rtccn-ernb.le under the policies, each insurer will, upon \V1.1tten rtqnl'.St of the :\",unC:'d ln,urt:d p:n· to rhc Named ln~ured one-halt ("I /2) of the: arnounr c,f ioss which is in disagT.:.:mcnt brn n<> more rhrn Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 145 of 197 FALLS Ll\K.E INSURANCE COMPANIES Property Policy the Company would have paid had there been no Boiler and Machinery policy in effect at the rime of the ''occurrence". The payment by the Comp:my hereunder and acceptance of the same by the Named Insured signiry the :1greement of the Company to submit to and proceed with arbitration ',!,ithin pjnety (90) days of such payments. The Arbitrators will be fr1.ree in number, one of whom shall be appointed by t.he Company hereunder, and the diird appoinr:ed by consent of the other r.wo. The decision by the arbirsators shall be binding on the insurer. The Named Insured agrees r.o cooperate in furnishing .info1mation and technical data as may be required by the Company in connection with such arbimn::ion or any otl1er method of apportionment upon which they may decide, but not to intervene Neither this agreement nor the payment or acceptance of any amounts hereunder shall operate to modify or waive the t.e1rns and conditions of the Boiler and lvfachine1y policy or d1is Policy, or affect in :my way the rights of the parties there under. This agreement shall becorne effective at Inception and shall continue in force until canceled by either insurer on 90 days '-'-'l1tten notice to the Insured or until the termination of one or all of die policies specified herein, whichever occurs first. The provisions of this Agreement shall not apply unless such orl1er pol.icy issued by the Boiler and i\hchinery Insurers is similarly endorsed. 35. PRIORITY; OF PAYMENTS CLAUSE In the evem. of a daim under this policy, and any underlying policy(ies), which involves more than one interest :1nd/or cover;igc and/or peril, it. shall be at the sole option of the Named Insured to apportion reco,0 ery under this policy when submitting final proof of loss. Subject to the overall amount of claims not exct':eding the overall lirnit of liability contained herein for any one loss. 36. ASSIGNM.ENT Assignrnent or trnnsfr:r of this policy shall not be valid except with the writ.ten consent of rl1c Company. 37. SUIT AGAINST COMPANY No suit, action or proceeding for the recovery of any claim under this policy shall be sustainable in any court of law or equity unless the Named Insured shall have fully complied with all the requirements of this policy, nor unles~ the same be commenced wirJiin twelve ( l 2) months next aft.er inception of the loss provided, howewr, that if under the bws of the ;nrisdiction in which the property is located such limitation is invalid, then any such cbims shall be void unk:ss such action, suit or proceedings be commenced within the shoncst limir. of t.imc permitted by the hrn·s of such jlliisdict.ion. 38. "VACANT" AND UNOCCUPIED "BUILDINGS" If the "building'' where the loss occurs has been "vacant" for more than 90 consecutive days before the loss or damage c,ccurs, rhc: Company will nor. pay for loss or damage caused by any of rhc fr,llowing: a. \\-'ater damage from any cause; b. Vandalism; c. "Building" Gbss 13.reakagc:; d. 1'heft; or e. :\trernptc'd Theft. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 146 of 197 FALLSLAKE INSURANCE COMPANIES Pxopel'ty Policy 39. CONCEAL\-iENT, MISREPRESENTATION OR FRAUD. This policy is void in any case of fraud by the Named Insured as it related to this policy at any time. It is also void if the Named Insured or any other insured, at 11ny time, intentionally conceals or misrepresents a m:1terial fact concerning: :1. This policy; b. Property insured under this policy; c. The Named Insured or any other insured's interest in the propetty insured under this policy; or d. A claim made under this policy. 40. DUTIES OF THE NA.t\tIED INSURED IN THE EVENT OF LOSS OR DAl\tlAGE It is a condition precedent to any payment ofloss that the Named Insured must see that the following are done in the event of loss or damage to insured property as soon as possible: a. Notify the police if a law may have been broken. b. Give the Company immediate notice of loss or damage including a description of the property involved. c. Give the Company a description of hov.:, when and where the loss or damage occurred. d. Take all reasonable steps to protect insured property from fi:trther damage by a peril insured against. If feasible, set the darnaged property aside and in the best possible order for examination. Also, frie Named Insured shall keep a record of expenses for emergency and temporary repair, for consideration in the settlement of the claim. A.ny record of expenses will not increase the applicable limit of 111surance. e. At the Company's request, g:iv<': the Company complete inventories of the damaged and undamaged property. Include quantities, costs, values and amount of loss claimed. f. Permit: the Company to inspect the property and records proving the loss or damage. Also pe1mit the Company to take sampks of damaged property fi.1r inspection, testing and analysis. g. Coopcrnr:e with die Company and its retained adjustors and experts in the investigation of the chim by providing requested documents and information as soon as possible. h. ff requested, both the Named Jnsured and any of its employees submit under oath, to questioning. ;1t such times as may be reasonably required about any matter relating to this insurance or the Named Insured's claim, including the Named Insured's books and records. In such event, the Named lnsurcd's and employees' answers must be signed. J. Send the Company a signed, sworn statement of loss containing the informntion reciucs:ed by rhe Company to investigate the claim. The Named Insured must do this within (i() days of r.l1t Company's re,1nest. The Company will supply the Named Insured with the necessary forms. 41. CONFORMITY TO STATUTE Terms of this policy in conflict with the writttn bws of the state iI1 which the policy is .isstkd are changed to conform to such laws. 42. TITLES OF PARAGRAPHS ► rhe r.1t.h... s of the rrnragr~phs of rhis forn1 and of cndorscrnents. if ,1ny, no\\' or hereafter :u1:1chcd hc·rc10 ;1fC inserted sulely for rhc convenience of reference and ~hall not be deemtd in any way w limit or ;1ffecr provisions to which 1hty iffe rd:necl. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 147 of 197 FALLS,LAKEINSURANC:E COMPANIE$ Property Policy 43. DEFINITIONS The following terms, whtnever used in this policy, are defined as follows: a. "Account Identification Number" (/1.IN; The comnict number assigned to an individual Insured .M.ember covering their schedule of locations insured hereunder. The AIN is issued by CIBJ\ under the authority of the various Insurers, as lisr:ed in Appendix BP, and is subject. to all terms and conditions of snch Insurers' policies, to the ext.em specifically sr.:ued for the individual contract number issued to the :Insured · Member. b. "Actual Cash V::ilue" The cost to repair or replace the dam:1ged property, minus depreciation of materials and applicable labor. c. "Building" or "Buildings" ;\ building at the ''described premises". d. "Cont:uninants or Pollutam:s" 1\ny solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, :icids, alkalis, chemicals and wasr.e, which aft.er its release can cause or threaten damage to human· health or hnman welfare or cnuses or threatens damage, deterioration, loss of value, marketability or loss of use to property insured hereunder, including but not limited to bacteria, virus, or hazardous substances as listed in the Federal \Vat.er, Pollution Control .Act, Cl.can Air Act, Resource Conservation and Recove1y Act of J 976, and Toxic Substances Control Act or as ch:sign,ited by r.hc U.S. Environmental Protecrjon Agency. \'17aste includes mar.erials to be recycled, reconditioned or reclaimed. c. "Described Premises" The Named Insured's property location that is stated in the Property Program Schedule of Locuions in Dedarnr.ions Page issued to the Named Insured !\-!ember by CIBA Insurance Services. f. '·Earth ]:V[ovement" M.ovemcnt of the e:nth, including loss or damage caused by, rcsulr.ing from, contributed ro, or aggravated by any natural or manm,tde ''earth movement", including but not limited to e,u-thquakc, landslide, mud flow, volcanic eruption, earth sinking, subsidence, canh rising. or earth shifring. g. "Electronic Data Processing Equipment·" "Ek-cu·onic Data Processing Et]uipmenr'' shall include, but not be limirc-d w, transferring e(]Uipmenr, computer systems, telecommunications systems or electronic control e(juiprncnt and component pans. h. "Electronic Data Processing iviedia" , : ;\II forms of d:1t:l, crmvcned dar.a, ck:ctronic:11.iy convened da1:1 :rnd/r,r pn,gr:1111s '."tl1ct/ {ff appiicar.ions ,md/or instructions and/or media ,Th.icles employed. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 148 of 197 Property Policy 1. "Financial lnte.resf' i\s used herein is.intended to include the following: Cl) The Namtd Insure.d's equity in the insured location as ickntified by its "Property Identification Number"; The value of the insnred's loan up to and including tht policy limits; or, (3) Reg.isr.ered legal ownership in r.he insured location. "Fine Arts" "Fine Arts" shall include, but not be limited to, bona fide works of art, works of rarity; historical v;iiue or artistic merit, photograph, (positives and negatives) lithographs, illustrations, galley proofs, original records, and similar properties. k. "Fire Brigade Charges/Fire Extinguishing Expenses" Firefighting and/ or containment charges and/ or fire dep:irtment service charges and other extinguishing expenses for which the Insured is assessed. J. "Flood" A general and tempornry condition of partial or complete inundation of normally dry land areas from: (1) The unusual and rapid accumulation or runoff of surface waters from any source; (2) The overflow of inland c,r tidal waters; or (3) \\lave$, r.ides or tidal \Vaves. m. "Occurrence" The term "occurrence'' shall mean any one loss, disaster, casualty, or series of losses, dirnsters, or casualties, arising out of one event. \vhen the terrn applies to loss or losses from the perils of tornado, cyclone, hurricane, windstorm, hail, riot, riot attending a strike, civil commotion, and vandalism one event shall be consr.rued to be all losses arising during a continuous period of 72 hours. n. "Property Identification Number" (PID) The term "Property Identification Number" or PID shall mean the individual number assigntcl to the N,uned l.nsured's propeny locu.ion tlnt is stated in the Dedar::nions Page issued to the .\famed Insured bv CJK\. Insurance Services. o. "Tier nnd 2 C(,unties" The term '·'J1cT J and 2 Counties" includes all listed counties, parishes and ones m the States bek,w. \'\·'here the \vords -Cf'.::ntire State" appear under the name of the st.ate, all counties, parishes and citic·s within that state ,1n: Tier l. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 149 of 197 FALLS LAl Aiab,1111:1 Tier ·1 Counties of Baldwin and J\-:lobilc Connecticut Tier 1 Counties of Fairfield, i\[iddlesex, Ne,v l·bven and New London Delaware Tier 1 County of Sussex Florida Tier I Entire State c;eorgia Tier 1 Counties of Bry,rn, Camden, Chatham, Glynn, Liberty and :McIntosh Tier 2 Counties of Brantley, Charlwn, Effingham, Long and \1?ayne H.:1waii Tier ·1 Entire State Lonisiana Tier I Parishes of Assumption, Calcasieu, Cameron, Iberia,Jefferson, Lafourche, Livingston, Or.leans, Pla,1ucmines, St.. Bcrn:u:d, St. Charles, St. James, St. John rhc Baptist, St. Mar:in (South), St. Mary, St. Tammany, Tangipahoa, Terrebone and Vermilion Tier 2 Parishes of Acadia, 1\scension, East Baron Rouge, Iberville, Jefferson DaYis, Lafoyer.tc, Sr. Martin (Norr.h), \X!ashington and \Vest Bar.on Rouge M.ainc Tier l Coumies of .'\ndro~coggin, Cumberland, Hancock, Kn.ox, Lincoln, Sagadahoc, \Valdo, \Vasbngton and York MarvLrnd Tier I Counties of Calvert, Charles, Dllrchesrer, Somc:rstt, St. J\farv's, Talbot, \Xiicomico ,rnd \'\!orctsrer · , fVI:1ss11chusc-tts Til'r ·1 Counties c,f Barmrnblc, Brisrol, Dukes, E~sex, Nantucket, Norfolk, Plvrnunth :ind Suffolk . Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 150 of 197 Pxopel'ty Policy J\1ississippi Tier [ Counties of Hancock, Harrison and Jackson Tier 2 Counties of George, Pearl River and Stone New Hampshire Tier l Connties of Rockingham and Strafford New [ersev Tier 1 Counties of Atlantic, Bergen, Cape .May, Cumberland, Essex, Hudson, J\liddlesex, Monmouth, Ocean and Union New York Tier l Counties of Bronx, Kings, Nassau, New York, Queens, Richmond, Suffolk and \Vestchcster N orrh Carolina Tier 1 Counties of Beaufort, Bertie, Brunswick, Camden, Carteret:, Chowan, Columbus, Craven, Currituck, Dare, l·-Iyde,Joncs, New l·fanover, Onslow, Pamlico, P:1sqnotank, Pender, Perquimans, Tyrrell and \Vashingron Tier 2 Corn1ties of Bladen, Duplin, Gates, l-Iertford, Jones, Lenoir, lvlartin and Pitt: Rhode Island Tier l Cc,unries of Bristol, Kent, Newport, Providence and Washington Sou th Carolina Tier 1 Counrjes of Beaufort_ Berkclev, Cirnrleston, Colleton, Dorchester; Georgetown, Hampton, Horrv and ]asper · , ~ South Carolina Tier2 Counties of Florence_ )v!arion and \XliJliamsburg Texas Tier l Counties of J\rnnsas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Harris,Jack.,on, Jeffe1:son, Kennedy, Kleberg, Liberty, J\.fatagord:i, Ncwr.on, Nueces, Or:mge_, Refugio, San Pmricio, Victori:1 and \\'.iiUacv · Tier 2 · · Counties of Bee, Brooks, Fon Bend, Goliad, Hardin, I-Iilclago,Jasper, Jim \X7eils,,ind \Vharrnn Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 151 of 197 Property Policy Virgini., Tier l Counties Accomack, Charles Gray, Chesapeake, Gloucester, Isle ofWight.,.James City, Lancaster, M.at.hews, Ivfiddlesex, New Kent, Northampton, Northumbedand, Prince C·eorge, Surry, Sussex, York and \•:-'estmorel:mcl Independent Cities of Chesapeake, Hampton, Newport News, Norfold, Poquoson, Ponsmom11, Suffolk, Virginia Beach and Williamsburg. p. "Vacant" The r.crm "vacant'' means r.hat less tlian 25% of the r:otal rent.able square footage of a "building" is rented to a lessee or sub-lessee and used by the lessee or sub-lessee to conductits customary operations. Customary opernt.ions are further.defined as d1e common opernrions and activities of d1e lessee or sub lessee when using the buikEng for .its inr:ended purpose. q. "\Vater Damage" Accidenr:al discharge or leakage of water or stemn as the dirc:ct result of the breaking apart or cracking of a plumbing, he:uing, air conditioning or other system or appliance (or.her than a sump system. including .its related equipment and parts), that is .located on the ·'described premises" :md contains ,:vatt'r or stea1n. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 152 of 197 ...FALLS e LAKE . INSURANCE. COMPANIES. Property Policy FALLS LAKE NATIONAL INSURANCE COlvIPANY Named Insured: The ;\[ember of Commercial Industrial Building Owners Alliance ("C]BA") .,s more folly defined in the policy Policy Number: CIBA-000002-00 Effective Date: March 31, 2019 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ENDORSEMENT NO. 1 EXTENSIONS OF SUBLIMIT ENDORSEMENT It is hereby noted agrttd that the sublimits contained in the policy attached can be amended to a rnmdmum per Insured per occru:rence sublimit as sbo,vn below: Extensions of Coverage *t : Limits: Accounts Receivable $250,000 Additions under construction, alterations and repairs to real property including materials and supplies $5,000,000 Newly Acquired Property (90 Day reporting) Included Back up of Sewers and Drains-· other than flood $1,000,000 Building Ordinance including Increased Cost of Construction: Coverage 1\ (Loss undamaged Real property) Included Cover:1ge B (Demolition) Up to $25,000,000 Coverage C (Increased Cost of Construction) Up to $25,000,000 Coverage D (Increased Business Income, Rents) Up to $10,000,000 Business Personal Property $1,000,000 Civil Authority 5 1ni / 30 Days Cancellation Clause 90/10 day Non-Pay Debris Rc:mov:tl 25'(,;, of Loss Electronic Darn Processing/?vkclin Valuation Included Exhibition, Expc,sirion, Tmde Show Inciuded Extended Period of Liability 365 Days Expediting Expense Included Extra Expense Included hne l\.rts SJ00,000 Fire Department Service Charge $250,000 .\fold Resulting from Covered Cause of Loss lnduded Jngress/Egress 5 mi/ 30Days Land Improvements Included Lawns, Landscaping, Shrubs, or Trees $W,OOO/ir.ern - $500,000 per occunencc Leasehold Interest Included LEED Green Building Coverage S2,500,(l(J() Lr,cks :md Keys $25,0(10 .M.iscell.lrleous Un-Named Location Coverage $500,0(1() 0 ff Premises Services Included Pollur:inr Cle:m Up & Removal - Per Occurrence and ,\nnml Aggreg.1te SIO(l,OOli Prep:1rntion Proof of Loss/Prnfcssional Fec,s (Ex duding Public 1\djuster Fees) s·1so,ooo Extension~ of Sublimirs Endorsement (133120 i 7 Protection and Prc:sc·rvmion of l)rc,pcrty lncludc:d Emergency Vacating Expense s·100,(J(iU Tenant Relocnion and Storage nf Personal Effects custs $ I tl0,/JIJ0 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 153 of 197 .FALLS.LA:KE . -····• P.ropedy Policy Reward (Arson, Crime) $25,000 Business Personai Property \vhile in Transit or Off Premises $100,000 Outdoor Real Property (Pools, Pctved Surfaces, \\7alls) Included Tempornty Removal of Property $100,000 Increased Tax Liability for Rental Income $25,000 Valuable Papers $250,000 tSublimits are per Insured Location Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 154 of 197 Property Policy FALLS LAKE NATIONAL INSURANCE COIVCPANY Named Insured: The i\Jember of Cc,mmcrcial :Industrial Building Owners Alliance ("CIBf\'') :is more fully defined in the policy Policy Number: CIBA-000002-00 Effective Date: March 31, 2019 THIS PAGE IS RESERVED FOR FUTURE USE Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 155 of 197 FALU:,- LAKE INSURANCE COMPANIES Property Policy FALLS LAKE NATIONAL INSURANCE co:MPANY Named Insured: The i\kmbc:r (,f Cc,mrnercial :Industrial Building Owners Alliance ("CIBA") :1s more fully defined in rhe policy Policy Number: CI BA-000002-00 Effective Date: J\farch 31, 2019 THIS PAGE IS RESERVED FOR FUTURE USE Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 156 of 197 FALL' LAKEJNSURANCE COMPANIES. Property Policy FALLS LAKE NATIONAL INSURANCE C01V1PANY (t\ Srock lnsur:::ince Comp:1nyl_hereinafo.::r the "Company") Named Insured: The Member of Cnmmerciai. Industsial Building Owners A.lliancc ("CIB.A") as more fully defined in the policy Policy Number: CIBA-000002-00 Effective Date: March 31, 2019 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ENDORSEMENT NO. 4 SERVICE OF SUIT CLAUSE - (METHOD OF SUIT IN STATE OF CALIFORNIA) This endorsement modifies insurance provided under the following: ALL COVERAGE P1\RTS IN THIS POLICY Falls Lake National Insurance Company hereby appoints the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute or his successor or successors in office, as the true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instimred by or on behalf of the Insured or any beneficiary hereunder arising out of 1J1is contract of insurance. The Company furthermore designates as the agent to ·whom a copy of the Service of Process should be forwarded by the Superintendenr, Commissioner or Direcwr of Insurance or other officer specified for that purpose in the Smte of California. A copy of any process, "suir', complaint or summons should be sent to Karen Saturday, Claims l\fanager - \Xlestern Region, Falls Lake National Insurnnce Company, 302l 1 Avenida de las Banderas, Rancho Sama Marg:1tita, CA 92683. ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHA1'1GED. SC-I 1-C\ (09/07) Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 157 of 197 :FALL&KE'INSURANCE COM Property Policy FALLS LAKE NATIONAL INSURANCE COMPANY Named Insured: The Member of Commercial Indusrsial Building Owners Alliance ("CIBA") rrs more folly defined in the policy Policy Number: CIBA-000002-00 Effective Date: March 31, 2019 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ENDORSEMENT NO. 5 EXCLUSION OF CERTIFIED ACTS OF TERRORISM A. The following exclusion is added: This insurance does not apply to: TERRORISM "Any injury or damage" arising, directly or indirectly, out of a "certified act of terrorism". B. 111c following definitions arc added: 1. For the purposes of tbis endorsement:, "any injury or damage" means any injury or damage covered under any Coverage Pan to v,hich this endorsement is applieable, and includes but is not limited to "bodily injury·', "property damage", "personal and advertising injury", "injury" or "environmental damage" as may be defined in any applicable Coverage Pan. 2. "Certified act of terrorisrn" means an act that is certified by the Secretary of the Treasury, in concurrence with the Secrernry of State and the 1-\r.torney General of the United States, to be an act of terrorism pursuant to the federal Terrorism Risk Insurance Act. The criteria contained in the Terrorism Risk Insurance Act for a "certified act of terrorisrn'' include the follmving: a. The act resulted in insured losses in excess of $5 million in the aggregate, attributable tO all types of insurnnce subjecr. to r.he Terrorism Risk Insurance Act.; and b. The act is a violent act or an act that is dangerous to human life, property or infrastructure and is com1rjtted by an individuai or individuals as pan of an effort to coerce the civilian population of r.he United States or m influence r.hc policy or affect the con- duct of the United States Government by coercion. ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 158 of 197 Properiy Policy FALLS LAKE NATIONAL INSURANCE COlvlPANY Named Insured: The ]\kmber of Con,mercial Industrial l3uiiding Owners .Alliance ("CIBA") as more folly defined in the policy Policy Number: CI BA-000002-00 Effective Date: March 31, 2019 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ENDORSEMENT NO. 6 CIBA PROPERTY ENDORSEMENTS FORMS LIST It is hereby noted and agreed that the CIBA Property Endorsements Forms List applies to a location if endorsed by Cl.BA. lnsura.nce Services, Inc. to the member conu::1ct. 01 AAC-001 CO 0319 Coverage ACTIVE ADULT COMMUNITY COVERAGE EXTENSIONS 01 AAD-STl DE 0319 Deductible ACCOUNT PLUS AGGREGRATE DEDUCTIBLE 01 ACV-001 LI 0319 Limitation ACTUAL CASH VALUE LIMITATION 01 AML-STl LI 0319 Limitation ACCOUNT MAXIMUM LIMIT OF LIABILITY 01 BOD-001 EX 0319 Exclusion BUILDING ORDINANCE, DEMOLITION AND INCREASED COST OF CONSTRUCTION EXCLUSION 01 BRC-100 LI 0319 Limitation REAL PROPERTY REPLACMENT COST LIMITATION (100% of Scheduled Value) 01 BRC-110 LI 0319 Limitation REAL PROPERTY REPLACMENT COST LIMITATION (110% of Scheduled Value) 01 BRC-125 LI 0319 Limitation REAL PROPERTY REPLACMENT COST LIMITATION (125% of Scheduled Value) 01 BRC-150 LI 0319 Limitation REAL PROPERTY REPLACMENT COST LIMITATION (150% of Scheduled Value) COMMERCIAL PROPERTY COVERAGE LIMIT (100% of Scheduled Real & Business Personal 01 CLE-100.LI 0319 Limitation Property & Loss of Income Values) COMMERCIAL PROPERTY COVERAGE LIMIT (125% of Scheduled Real & Business Personal 01 CLE-125 LI 0319 Limitation Property & Loss of Income Values) COMMERCIAL PROPERTY COVERAGE LIMIT (150% of Scheduled Real & Business Personal 01 CLE-150 LI 0319 Limitation Property & Loss of Income Values) 01 CMP-001 OT 0319 Other MINIMUM EARNED PREMIUM - COASTAL PROPERTIES WITH WINDSTORM COVERAGE 01 COC-STl LI 0319 Limitation BUILDINGS IN THE COURSE OF CONSTRUCTION AND/OR UNDER RENOVATION LIMITATION Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 159 of 197 Property Policy DEMOLITION, INCREASED COST OF CONSTRUCTION, INCREASED LOSS OF INCOME DUE TO 01 DCI-XXX LI 0319 Limitation BUILDING ORDINANCE COMBINED SINGLE SUB-LIMIT (Fill In) DOWN ZONING COVERAGE - REPLACEMENT COST (with Limitation to 100% of Scheduled 01 DZC-001 LI 0319 Limitation Real Property Value) 01 EME-001 CO 0319 Coverage EARTH MOVEMENT EXTENSION ENDORSEMENT 01 EPl-365 CO 0319 Coverage EXTENDED PERIOD OF INDEMNITY 365 DAYS 01 ESL-001 EX 0319 Exclusion EARTHQUAKE SPRINKLER LEAKAGE EXCLUSION 01 ESL-XXX DE 0319 Deductible EARTHQUAKE SPRINKLER LEAKAGE DEDUCTIBLE (Fill In) 01 FRC-001 LI 0319 Limitation FUNCTIONAL REPLACEMENT COST LIMITATION 01 HOA-001 EX 0319 Exclusion HOMEOWNERS AND CONDOMINIUM ASSOCIATION UNIT PROPERTY EXCLUSION (Bare Walls) HOMEOWNERS AND CONDOMINIUM ASSOCIATION UNIT PROPERTY COVERAGE (All 01 HOA-002 CO 0319 Coverage Inclusive) 01 HOA-011 LI 0319 Limitation LOSS OF INCOME COVERAGE LIMITED TO CONDOMINIUM FEE INCOME ONLY HOMEOWNERS AND CONDOMINIUM ASSOCIATION UNIT PROPERTY COVERAGE - Limit Per 01 HOA-XXX CO 0319 Coverage Unit (Fill In) INDUSTRIAL/COMMERCIAL CONDOMINIUM ASSOCIATION - UNIT PROPERTY EXCLUSION 01 IND-001 EX 0319 Exclusion (Bare Walls) INDUSTRIAL/COMMERCIAL CONDOMINIUM ASSOCIATION - UNIT PROPERTY COVERAGE - 01 IND-XXX CO 0319 Coverage Limit Per Unit (Fill In) 01 LOS-ST1 OT 0319 Other LOSS PAYEE 01 LPP-ST1 OT 0319 Other LOSS PAYABLE PROVISIONS 01 LVP-ST1 CO 0319 Coverage LIMITED VACANCY PERMIT ENDORSEMENT - EXCLUDED OR SUBLIMITED CAUSES OF LOSS 01 MAR-001 EX 0319 Exclusion MARINE PROPERTY EXCLUSION 01 MEP-025 OT 0319 Other MINIMUM EARNED PREMIUM (25%) 01 MEP-050 OT 0319 Other MINIMUM EARNED PREMIUM (50%) 01 MEP-100 OT 0319 Other MINIMUM EARNED PREMIUM (100%) 01 MOR-ST1 OT 0319 Other MORTGAGEE/LOSS PAYEE 01 NWS-001 EX 0319 Exclusion NAMED WINDSTORM EXCLUSION 01 PIL-001 LI 0319 Limitation LOSS OF INCOME PERIOD OF INDEMNITY LIMITED TO ONE YEAR 01 PPE-001 EX 0319 Exclusion PERSONAL PROPERTY EXCLUSION 01 PPL-STl LI 0319 Limitation PERSONAL PROPERTY LIMITATION (Fill In) 01 PRS-001 LI 0319 Limitation PROTECTIVE SAFEGUARDS 01 PSE-ST1 EX 0319 Exclusion SPECIFIC PROPERTY EXCLUSION (Fill In) 01 PSL-STl LI 0319 Limitation SPECIFIC INSURED PROPERTY COVERAGE LIMITATION (Fill In) 01 PUD-001 EX 0319 Exclusion PLANNED UNIT DEVELOPMENT EXCLUSION 01 RAC-015 LI 0319 Limitation ROOF-ACTUAL CASH VALUE LIMITATION (Older Than 15 Years) 01 SBU-001 EX 0319 Exclusion BACK UP OR OVERFLOW OF SEWERS OR DRAINS - EXCLUSION 01 SBU-XXX DE 0319 Deductible BACK UP OR OVERFLOW OF SEWERS OR DRAINS - DEDUCTIBLE (Fill In) 01 SBU-XXX LI 0319 Limitation BACK UP OR OVERFLOW OF SEWERS OR DRAINS - LIMITATION (Fill In) 01 TCP-XXX DE 0319 Limitation TENANT CAUSED PROPERTY DAMAGE DEDUCTIBLE (Fill In) 01 TDC-XXX DE 0319 Deductible THEFT DEDUCTIBLE - COPPER MATERIALS (Fill In) Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 160 of 197 p roner:vt p 0 l'!CV 01 TE-001 EX 0319 Exclusion LOSS OF INCOME AND/OR EXTRA EXPENSE EXCLUSION 01 VAC-001 EX 0319 Exclusion VACANT BUILDING EXCLUSION 01 VAC-XXX DE 0319 Deductible VACANT BUILDING DEDUCTIBLE (Fill In) 01 VAT-001 EX 0319 Exclusion VANDALISM AND THEFT EXCLUSION 01 VAT-XXX DE 0319 Deductible VANDALISM AND THEFT DEDUCTIBLE (Fill In) 01 VPE-001 CO 0319 Coverage VACANCY PERMIT 01 VPE-ASl LI 0319 Limitation AUTOMATIC SPRINKLER SYSTEM WARRANTY 01 VPE-BAl LI 0319 Limitation CENTRAL STATION BURGLAR ALARM WARRANTY 01 VPE-FA1 LI 0319 Limitation CENTRAL STATION FIRE ALARM WARRANTY 01 WAH-001 EX 0319 Exclusion WIND AND/OR HAIL EXCLUSION 01 WAH-BXX-XXX DE Deductible WIND AND/OR HAIL DEDUCTIBLE (Applies Per Building) 0319 01 WAH-ST1 DE 0319 Deductible ACCOUNT WIND AND/OR HAIL DEDUCTIBLE (Per Occurrence For Account) 01 WAH-XPC-XXX DE Deductible WIND AND/OR HAIL DEDUCTIBLE (Percentage of values at location) 0319 01 WAH-XXX DE 0319 Deductible WIND AND/OR HAIL DEDUCTIBLE (Dollar Amount Per Location - Fill In) 01 WF-lOOK DE 0319 Deductible WILDFIRE DEDUCTIBLE 01 WHC-001 EX 0319 Exclusion EXCLUSION - COSMETIC LOSS TO ROOF COVERINGS OR SIDING 01 WLD-001 EX 0319 Exclusion WATER OR LIQUID DAMAGE FROM ANY CAUSE EXCLUSION 01 WLD-XXX DE 0319 Deductible WATER OR LIQUID DAMAGE FROM ANY CAUSE DEDUCTIBLE (Fill In) 01 WSR-001 EX 0319 Exclusion WOOD SHAKE TYPE ROOF - BUILDING ORDINANCE EXCLUSION 03 EBC-001 EX 0319 Exclusion EQUIPMENT BREAKDOWN EXCLUSION 03 EBC-XXX DE 0319 Deductible EQUIPMENT BREAKDOWN DEDUCTIBLE 03 EBC-ST1 LI 0319 Coverage EQUIPMENT BREAKDOWN COVERAGE LIMIT 05 CRD-001 0319 Coverage COMMERCIAL CRIME COVERAGE SUPPLEMENTAL DECLARATIONS ENDORSEMENT ECP 10 544 09 17 Exclusion EXCLUSION - EXISTING DAMAGE * The letter "X" in the CIBA Reference Number indicates that there :tre multiple version of the same endorsement, w-ith different amoums for limits or deductibles. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 161 of 197 FALL~KE Property Policy THIS PAGE IS RESERVED FOR FUTURE USE Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 162 of 197 I•· s..J Equipment Breakdown Coverage Form Declarations Named Insured: Refer to Evidence of Commercial Property Insurance to which these Declarations are attached. Property Identification Number... Refer to Evidence of Commercial Property Insurance to which these Declarations are attached. Effective Date: ...... Refer to Evidence of Commercial Property Insurance to which these Declarations are attached. Issue Date...... Refer to Evidence of Commercial Prope1iy Insurance to which these Declarations are attached. These coverages apply to the location of the property identified by the prope1iy identification number in the Evidence of Commercial Property Insurance to which these Declarations are attached. Coverages limits Equipment Breakdown Limit ...... $7,500,000 Property Damage ...... Included in E9uipment Breakdown Limit Off Premises Property Damage ...... $100,000 Business Income ...... Included in Equipment Breakdown Limit Extra Expense ...... Included in Equipment Breakdown Limit Service Interruption ...... $100,000 Contingent Business Income ...... Excluded Perishable Goods ...... $500,000 Data Restoration ...... $50,000 Demolition ...... $100,000 Ordinance or Law...... $100,000 Expediting Expenses ...... $250,000 Hazardous Substances ...... $100,000 Deductibles Combined, All Coverages ...... Refer to Evidence of Commercial Property Insurance to which these Declarations are attached. Other Conditions No Coinsurance applies to this policy. Extended Period of Restoration······ 30 Days Service Interruption Waiting Period -- 24 Hours 03 El3C- l 00 DC 03 l 3 Page l (If i Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 163 of 197 Equipment Breakdown Coverage Form Various provisions in this policy restrict coverage. Read the entire policy carefully to detennine rights, duties, and what is and is not covered. Throughout this policy, the words "you" and "your" refor to the Named Insured shown in the Declarations. The words "we,'' "us" and "our'' refer to the Company providing this Insurance. Other ,vords and phrases that appear in quotation marks have special meaning. Refer to Section G - DEFINITiONS. Examples are shown for illustrative purposes only and do not represent predicted or expected outcomes. A. COVERAGE This Equipment Breakdown Coverage provides insurance for a Covered Cause of Loss as defined in A. J. below. In the event of a Covered Cause of Loss, we will pay for loss as described in A.2. below. 1. Covered Cause of Loss - "Accident" The Covered Cause of Loss for this Equipment Breakdovm Coverage is an ·'accident." Without an "accident,'' there is no Equipment Breakdown Coverage. a. "Accident" means a fortuitous event that causes direct physical damage to "covered equipment." The event must be one of the following: (1) Mechanical breakdO\vn, including rupture or bursting caused by centJ.ifugal force; (2) Artificially generated electrical cuITent, induding electrical arcing, that damages electrical devices, appliances or wires; (3) Explosion, other than combustion explosion, of steam boilers, steam piping, steam engines or steam turbines; (4) An event inside steam boilers, steam pipes, steam engines or steam turbines that damages such equipment; (5) An event inside hot water boilers or other water heating equipment that damages such equipment; or (6) Bursting, cracking or splitting. "Accident" does not include any condition or event listed in Definition G. l.b. b. "Covered Equipment" means the following: ( 1) Unless specified otherwise .in the Declarations: (a) Equipment that generates, transmits or utilizes energy, including electronic communications and data processing equipment; or (b) Equipment which, during nonnal usage, operates under vacuum or pressure, other than the weight of its contents. "Covered equipment" may utilize conventional design and technology or new or newly commercialized design and technology. (2) Except as specifically provided for under Off Premises Property Damage, Service Interruption, Contingent Business Income, paragraph (2) of Perishable Goods and Civil Authority, such equipment must be at a location described in the Declarations and must be owned or leased by you or operated under your control. "Covered equipment'· does not include any property listed in Definition G.8.b. 2. Coverages Provided only for that portion of the loss, damage or This section lists the coverages that may apply expense that is solely attributable to the in the event of an '·accident." Each coverage is "accident.'" subject to a specifo;: limit as shown in the a. Property Damage Declarations. See p:u·agraph C.2. for details. We will pay for physical damage to These covernges apply only to the direct result '·covered property'" that is at a location ofan ·'accident." For each coverage. we will pay indicated in the Declarations at the time or Incluclcs ,:opyright material of lnsc!l"an~c Scrvic~s OHict. lne. with i!s p,~nnission. 03 EBC-002 CO 0313 i or JS Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 164 of 197 the "accident." "anchor location.'' b. Off Premises Property Damage Perishable Goods If you have transportable "covered (I) We will pay for physical damage to equipment" that, at the time of the "perishable goods'' due to "accident,'' is within the Coverage "spoilage." Territory, but is not; (2) We will also pay for physical (1) At a location indicated in the damage to "perishable goods" due to Declarations; or "spoilage'' that is the result of an (2) At any other location owned or leased "interruption of service." by you, (3) We will also pay for physical we will pay for physical damage to such damage to "perishable goods" clue to "covered equipment.'' contamination from the release of refrigerant, including but not limited c. Business Income to ammonia. (1) We will pay your actual loss of "business income" during the (4) We will also pay any necessary "period ofrestoration'' that results expenses you incur during the directly from the necessary total or "period of restoration'" to reduce the partial interrnption of your business. amount ofloss under this coverage. We will pay for such expenses to the (2) We will also pay any necessary extent that they do not exceed the expenses you incur during the amount ofloss that otherwise would "period ofrestoration" to reduce the have been payable under this amount of loss under this coverage. coverage. We will pay for such expenses to the extent that they do not exceed the h. Data Restoration amount of loss that otherwise would ( l) We will pay for your reasonable and have been payable under this necessmy cost to research, replace coverage. or restore lost ''data." (3) We will consider the actual • (2) We will also pay for your loss and experience of your business before expense as defined under Business the "accident" and the probable Income coverage and Extra Expense experience you would have had coverage that is the result ofh.(l) without the ·'accident" in above, if such coverage is otherwise determining the amount of our applicable under this policy. This payment. coverage is incluclecl within and cl. Extra Expense subject to your Data Restoration limit. We will pay the reasonable and necessarv "extra expense" to operate your business i. Demolition during the "period of restoration." ( I) This coverage applies if an e. Service Interruption "accident" damages a building that is "covered property" and the loss is \Ve will pay for your loss and expense as increased by an ordinance or law defined under Business Income coverage that: and Extra Expense coverage that is the result of an ''interruption of service.'' (a) Requires the demolition of a building that is otherwise f. Contingent Business Income .reparable; We will pay for your loss and t'.xpense as (b) Is in force at the time of the defined under Business Income and Extra ·'accident"; and Expense coverages that (c) Is not addressed under ( I) Results from an "interruption of Hazardous Substances supply''; or coverage. (2) Results from an ·'accident'' to an (2) We will pay for the following Includes copyright material of Insurance Services Office. Inc. with its pen11ission. 2 ,)f 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 165 of 197 additional costs to comply with such (3) As used in this coverage, additional ordinance or law: costs mean those beyond what (a) Your actual and necessary cost would have been payable under this to demolish and clear the site of Equipment Breakdmvn Coverage the undamaged parts of the had no such ordinance or law been building; and in force at the time of the "accident." (b) Your act:ual and necessary cost ( 4) We will also pay for your loss and to reconstruct the undamaged expense as defined under Business parts of the building. Income coverage and Extra Expense coverage that is the result ofj.(l) (3) As used in this coverage, additional above, if such coverage is otherwise costs mean those beyond what applicable under this policy. This would have been payable under this coverage is included within and Equipment Breakdmvn Coverage subject to your Ordinance or Law had no such ordinance or law been in force at the time of the "accident." limit. Expediting Expenses (4) We will also pay for your loss and k. expense as defined under Business With respect to your damaged "covered Income coverage and Extra Expense property," we will pay the reasonable extra coverage that is the result of i.( I) cost to: above, if such coverage is otherwise (1) Make tempormy repairs; and applicable under this policy. This (2) Expedite pe1manent repairs or coverage is included \Vithin and permanent replacement. subject to your Demolition limit. I. Hazardous Substances j. Ordinance or Law (]) We will pay for the additional cost ( 1) This <:overage applies if an to repair or replace "covered "accident" damages a building that property" because of contamination is "covered property" and the loss is by a "hazardous substance." This increased by an ordinance or law includes the additional expenses to that: clean up or dispose of such property. (a) Regulates the construction or This does not include contamination repair ofbuildings, including of"perishable goods" by refrigerant, ·'building utilities"; including but not limited to (b) Is in force at the time of the ammonia, which is addressed in "accident'"; and Perishable Goods, A.2.g.(3). ( c) ls not addressed under (2) As used in this coverage, additional Demolition coverage or costs mean those beyond what Hazardous Substances would have been payable under this coverage. Equipment Breakdo\vn Coverage had no "hazardous substance" been (2) We will pay for the following involved. additional costs to comply with such ordinance or law: (3) We will also pay for your loss and expense as defined under Business (a) Your acnial and necessary cost .Income coverage and Extra Expense to repair the damaged portions coverage that is the result ofl.( I) of the building; above, if such coverage is otherwise (b) Your act1.1al and necessary cost applicable under this policy. This to reconstruct the damaged coverage is included within and portions of the building; and subject to your Hazardous ( c) Your actual and necessary cost Substances limit. to bring undamaged portions of m. Newly Acquired Locations the building into compliance ( l) You will notify us promptly of any with the ordinance or law. newly acquired location that you Includes cnpy1ight materiul of Insurance Services Office. Inc. with its pc:nnission. 3 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 166 of 197 have purchased or leased during the Declarations are extended to an Policy Period. expansion or rehabilitation of that (2) All coverages applicable to any location. scheduled location under this (3) This coverage begins at the time you Equipment Breakdown Coverage are begin the expansion or rehabilitation extended to a newly acquired project. location that you have purchased or (4) We will charge you additional leased during the Policy Period. premium for newly acqi.1ired (3) This coverage begins at the time you equipment from the date the acquire the property. As respects equipment is installed. newly constructed properties, we o. Civil Authority will only consider them to be We will pay for your loss and expense as acquired by you when you have fully defined under Business Income imd Extra accepted the completed project. Expense coverages that results from a civil (4) This coverage ends when any of the authority prohibiting access to a location follo""ing first occurs: described in the Declarations due solely to (a) This Policy exp.ires; an "accident" that causes damage to (b) The number of clays specified in property within one mile of such location. the Declarations for this provided that such action is taken in coverage expires after you response to dangerous physical conditions acquire the location; resulting from the "accident," or to enable a civil authority to have unimpeded access to (c) The location is incorporated into the damaged property. the regular coverage of this policy; or B. EXCLUSIONS We will not pay for any excluded loss, damage or (cl) The location is inco1vorated into expense, even though any other cause or event the regular coverage of another contributes concurrently or in any sequence to the Equipment Breakdmm policy loss, damage or expense. you have. l. We will not pay for loss, damage or expense (5) Iflimits or deductibles vary by caused directly or indirectly by any of the location, the highest Jim.its and following, whether or not caused by or resulting deductibles will apply to newly from an "accident." acquired locations. However, the most we will pay for loss, damage or a. Fire and Explosion expense aris.ing from any "one (I) Fire, including smoke from a fire. accident" is the amount shown as the (2) Combustion explosion. This includes, Newly Acquired Locations limit in but is not limited to, a combustion the Declarations. explosion of any steam boiler or (6) We will charge you additional other fired vessel. premium for newly acquired (3) Any other explosion. except as locations from the date you acquire specifically provided in A. l .a.(3 ). the property. b. Ordinance or Law Course of Construction n. The enf (2) All coverages applicable ro any C. Earth Movement location described .in th.-: Earth movement, whether natural or lndm.ie:-; copyiight material of Insurance Services Office. Inc_ with its pcn11issit)n. 4 or 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 167 of 197 human-made, including but nor limited to Vandalism, meaning a willful and earthquake, shock, tremor, subsidence, malicious act that causes damage or landslide, rock fall, earth sinking. sinkhole destruction. collapse or tsunami. 7 We will not pay for an "accident" caused by or d. Nuclear Hazard resulting from any of the follm-,~ng causes of Nuclear reaction, detonation or radiation, loss: or radioactive contamination, however a. Lightning. caused. b. Windst01m or Hail. However, this e. War and Military Action exclusion does not apply when: (1) War, including undeclared or civil (1) "Covered equipment" located within war; a building or structure suffers an (2) Warlike action by a military force, "accident" that results from wind including action in hindering or blown rain, snow, sand or dust; and defending against an actual or (2) The building or structure did not first expected attack, by any government, sustain wind or hail damage to its sovereign or other authority using roof or walls through which the rain, military personnel or other agents; or snow, sand or dust entered. (3) Insurrection, rebdlion, revolution, c. Collision or any physical contact caused by usurped power, political violence or a "vehicle." This includes damage by action taken by governmental objects falling from aircraft. However, this authority in hindering or defending exclusion does not apply to any unlicensed against any of these. "vehicles" which you own or which are f. \Yater operated .in the course of your business. (1) Flood, surface water, w.ives, tides, d. Riot or Civil Commotion. tidal waves, overflow of any body of e. leakage or discharge of any substance · water, or their spray, all whether from an automatic sprinkler system, driven by wind or not; including collapse of a tank that is part of (2) Mudslide or mudfiow; or the system. (3) Water that backs up or overflows f. Volcanic Action. from a sewer, drain or sump. g. An electrical insulation breakdown test. g. Failure to Protect Propeiiy h. A hydrostatic, pneumatic or gas pressure Your failure to use all reasonable means to test. protect "covered property" from damage 1. \Vater or other means intended to follmving an "accident." extinguish a fire, even when such an h. Fines attempt is unsuccessful. Fine, penalty or punitive damage. _i. Elevator collision. 1. Mold 3. We will not pay for an "accident" caused by or resulting from any of the following perils, if Mold, fongus, mildew or yeast, including such peril is a covered tause of loss under any spores or toxins created or produced by another coverage patt or policy of insurance you or emanating from such mold, fi.1111:,,11s, mildew or yeast. This includes, but is not have, whether collectible or not, and without limited ro, costs arising from clean-up, regard to whether or not the other coverage pa1t or policy of insurance provides the same remediation, containment, removal or coverage or scope of coverage as this policy. abatement of such mold, fungus, mildew; yeast, spores or toxins. However, this a. Falling Objects. exclusion does not apply to "spoilage'' of b. Weight of Snow, Ice or Sleet. personal property that is "perishable c. Water Damage, meaning discharge or goods'· to the extent that such ·'spoilage" is leakage of water or steam as the direct covered under Perishable Goods coverage. result of the breaking apart or cracking of J. Vandalism any part of a system or appliance containing water or steam. Includes copyright mat<.>rial of lnsumnct" St:!vic\!5 Offict\ Inc. with its p~n11issil)n. 5 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 168 of 197 d. Collapse. ·'period of restoration.'' e. Breakage of Glass. d. Any increase in loss resulting from an f. Freezing caused by cold weather. agreement between vou and vour customer o; supplier. This in;ludes, b~t is not limited g. Discharge of molten material from to, contingent bonuses or penalties, late equipment, including the heat from such fees, demand charges, demurrage charges discharged material. and liquidated damages. 4. Exclusions 2. ,md 3. do not apply if all of the 6. With respect to Off Premises Property Damage following are true: coverage, Service Interruption coverage, a. The excluded peril occurs away from any Contingent Business Income coverage, location described in the Declarations and paragr;ph (2) or"Perishable Goods coverage and causes an electrical surge or other electrical Civil Authority coverage, we will also not pay disturbance; for an "accident" caused by or resulting from b. Such surge or disturbance is transmitted any of the perils listed in Exclusion 3. above, through utility service transmission lines to whether or not such peril is a covered cause of a described location; loss under another coverage part or policy of c. At the described location, the surge or insurance you have. disturbance results in an "accident" to 7. With respect to Data Restoration coverage, we "covered equipment'' that is owned or will also not pay to reproduce: operated under the control of you or your a. Software programs or operating systems landlord; and that are nor commercially available; or d. The loss, damage or expense caused by b. "Data" that is obsolete, unnecessary or such surge or disturbance is not a covered useless to you. cause of loss under another coverage part or policy of insm-ance you have, whether 8. With respect lo Demolition and Ordinance or collectible or not, and without regard to Law coverages, we will also not pay for: whether or not the other coverage part or a. Increased demolition or reconstruction policy of insurance provides the same costs until they are actually incurred; or coverage or scope of coverage as this b. Loss clue to ,my ordinance or law that: policy. ( l) You were required to comply with 5. With respect to Business lncome, Extra Expense before the loss, even if the building and Service Interruption coverages, we will also wa<: undamaged; and not pay for: (2) You failed to comply with; a. Loss associated with business that would whether or not you were aware of such non not or could not have been caJTied on if the compliance. "accident'' had not occurred; C. UM.ITS OF INSURANCE b. Loss caused by your failure to use due Any payment made under this Equipment Breakdown diligence and dispatch and all reasonable Coverage will not be increased if more than one means to resume business; insuredis shown in the Declarations or if you are C. That pmt of any loss that extends beyond or comprised of more than one legal entity. occurs after the "period of restoration." I. Equipment Breakdown Limit This includes, but is not limited to: The most we w:ill pay for Joss, damage or (1) ''Business income" that ,vould have expense arising from any "one accident" is the been earned after the '"period of amount shown as the Equipment Breakdown restoration,'' even if such loss is the Limit in the Declarations. direct result of the suspension, lapse 2. Coverage Limits or cancellation of a contract during lhe "period of restoration'': and a. The limit of your insurance under each of , the coverages listed in A.2. from loss, (2) ·'Extra expense'' to operate your damage or expense arising from any "one business after the '"period of accident" is the amount indicated for that restoration,'' even if such loss is coverage in the Declarations. These limits contracted for and paid during the are a part of. and not in addition lo. the includes copyright material of Insurance- Servic~s Office. Inc. with its pt'rmission. 6 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 169 of 197 Equipment Breakdown Limit. Ifan amount l. Deductibles for Each Coverage of time is shown, coverage will continue a Unless the Declarations indicate that your for no more than that amount of time deductible is combined for all coverages, immediately following the "accident." If a multiple deductibles may apply to any "one coverage is shown as "Included,'' that accident." coverage is provided up to the remaining b. We will not pay for loss, damage or amount of the Equipment Breakdown expense under any coverage until the Limit. If no limit is shown in the amount of the covered loss or damage Declarations for a coverage, or ifa exceeds the deductible amount indicated for coverage is shown as Excluded in the that coverage in the Declarations. \Ve will Declarations, that coverage will be then pay the amount of loss, damage or considered to have a limit of$0. expense in excess of the applicable b. If two or more coverage limits apply to the deductible amount, subject to the applicable same loss or portion of a loss, we wi11 pay limit indicated in the Declarations. only the smallest of the applicable limits c. 1f deductibles vary by type of"covered for that loss or portion of the loss. This equipment" and more than one type of means that if: ·'covered equipment" is involved in any (I) You have a loss under one of the "one accident,'' only the highest deductible coverages listed in A.2.; and for each coverage will apply. (2) All or part of the loss is not covered cl. The following applies when a deductible is because the applicable coverage is expressed as a function of the horsepower Excluded or has a limit that is less rating of a refrigerating or air conditioning than the amount of your loss, system. J f more than one compressor is used we will not pay the remaining amount of with a single system, the horsepower rating such loss under any other coverage. of the largest motor or compressor \\~II EXAMPLEl determine the horsepower rating of the system. Property Damage Limit: $7,000,000 2. Direct and Indirect Coverages Business Income Limit: $1,000,000 a. Direct Coverages Deductibles and Indirect Newly Acquired Locations Limit: $500.000 Coverages Deductibles may be indicated in There is an "accident" at a newly acquired location the Declarations. that results in a Property Damage loss of $200,000 b. Unless more specifically indicated in the and a Business Income loss ofSS00,000. Declarations: We will pay $500,000, because the entire loss is (1) Jnclirect Coverages Deductibles subject to the Newly Acquired Locations Lim.it of apply to Business Income and Extra $500,000. Expense loss, regardless of where EXAl\'lPLE 2 such coverage is provided .in this Property Damage Limit: $7.000,000 Equipment Breakdown Coverage; Business Income Limit: $500,000 and Hazardous Substances Limit: $25.000 (2) Direct Coverages Deductibles apply There is an "accident" that results in a loss of to all remaining loss, damage or $100,000. Ifno "hazardous substance" had been expense covered by this Equipment involved, the property damage loss would have been Breakdown Coverage. $10,000 and the business income loss would have EXAMPLE been $20,000. The presence of the "hazardous An '"accident" results in covered losses as substance" increased the loss by $70,000 (increasing follows: the clean up and repair costs by $30,000 and S l 00,000 Total Loss (all applicable increasing the business income loss by $40,000). coverages) We will pay $55,000 ($10,000 properry damage plus S 35.000 Business Income Loss (including $20.000 business income plus $25.000 hazardous $2,000 of business income loss payable substances). under Data Restoration coverage) D. DEDUCTIBLES Includes cnpytight material of lnst1rance Se:-vic~s Office. Lill'. wil]l its pc'n11i~sion. 7 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 170 of 197 S 5,000 Extra Expense Loss completely, for 10 working days. If there In this case, the Indirect coverages loss had been no "accident,'' the total ''business totals $40,000 before application of the income'' al the affocted location fi.lf those Indirect Coverage Deductible. The Direct l 0 working days would have been $5,000. coverages loss totals the remaining $60,000 The Indirect Coverages Deductible is 3 before application of the Direct Coverage Times ADV. Deductible. $5,000 I 10 = $500 ADV 3. Application of Deductibles 3 X $500 = $1,500 Indirect Coverages a. Dollar Deductibles Deductible We will not pay for loss, damage or cl. Percentage of Loss Deductibles expense resulting from any "one accident'' l fa deductible is expressed as a percentage until the amount of loss, damage or expense ofloss, we will not be liable for the exceeds the applicable deductible or indicated percentage of the gross amount of deductibles shown in the Declarations. We loss, damage or expense (prior to any will then pay the amount of loss, damage or applicable deductible or coinsurance) expense in excess of the applicable insured under the applicable coverage. If deductible or deductibles, subject to the the dollar amount of such percentage is less applicable limits sho\\-11 in the Declarations. than the indicated Minimum Deductible, b. Time Deductibles the lVlinimum Deductible will be the applicable deductible. 1fa time deductible is shown in the Declarations, we will not be liable for any E. LOSS CONDITIONS loss occurring during the specified number The following conditions apply: of hours or clays immediately following the 1. Abandonment "accident." If a time deductible is expressed There can be no abandonment of any property to in days, each clay shall mean twenty-four us. consecutive hours. 2. Brands and Labels c. Multiple of Average Daily Value (ADV) Deductibles a. If branded or labeled merchandise that is "covered property'" is damaged by an 1f a deductible is expressed as a number ''accident,'' but retains a salvage value, you times ADV, that amount will be calculated may: as follows: (I) Stamp the word SALVAGE on the The ADV (Average Daily Value) will be merchandise or its containers if the the ·'business income" that would have stamp will not physically damage the been earned during the period of merchandise; or interruption had no "accident" occurred, divided by the number oCworking days in (2) Remove the brands or labels, if that period. The ADV applies to the doing so will not physically damage ''business income'· value of the entire the merchandise. You must re-label location, whether or not the loss affects the the merchandise or its containers to entire location. If more than one location is comply with the law. .included in the valuation of the loss, the b. We will pay for any reduction in value of ADV will be the combined value of all the salvage merchandise resulting from affected locations. For purposes of this either of the rwo actions listed in 2.a. calculation, the period of interruption may above, subject to all applicable limits. not extend beyond the '·period of c. \Ve will also pay the reasonable and restoration.'· necessary expenses you incur to perfom1 The number indicated in the Declarations either of the two actions desc1ibed in 2.a. will be multiplied by the ADV as above. We will pay for such expenses to determined above. The result \\~ll be used the extent that they do not exceed the as the applicable deductible. amount recoverable from salvage. d. If a Brands and Labels Limit is shown on EXAMPLE the Declarations, we will not pay 1111.m~ than Business is interrupted, partially or lnclw.ie:; copyiight material of Insurance Servin:s Offi~e. Inc. with its pt."n11issil)n. 8 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 171 of 197 the indicated amount for coverage under Step l: $100,000 i $200,000 = .5 this Condition. Step 2: $40,000 x.5 = $20,000 3. Coinsurance - Business Income Coverage Step 3: $20,000 - $5,000 = $15,000 a. Unless otherwise shown in the . The total "business income'' loss recovery, after Declarations, Business Income coverage is deductible, would be $15,000. For the subject to coinsurance. This means that we .rdnainder, you will either have to rely on other will not pay the full amount of any insurance or absorb the loss yourself. ·'business income" loss if the "business We will also charge you an additional premium income actual annual value" is greater than the "business income estimated annual in recognition of the "business income actual annual value.'· value" at the affected location at the time of the "accident.'' Instead, we will determine EXAMPLE 2 (Adequate insurance) the most we will pay using the following When: steps: The "business income actual annual value'' at (1) Divide the "business income the location of loss at the time of the ·'accident" estimated annual value" by the is $200,000. "business income actual annual The "business income estimated annual value'· value" at the time of the "accident"; shown in the Declaratior1~ for the location of (2) Multiply the total amount of the loss is $200,000. covered loss of '·business income" The actual loss of''business income'' resulting by the amount detennined in from the "accident" is $40,000. paragraph (1) above; The Business Income limit is S l 00,000. (3) Subtract the applicable deductible The Business Income deductible is $5,000. from the amount detemtined in paragraph (2) above; Step I: $200,000 / $200,000 = 1 The resulting amount, or the Business Step 2: $40,000 x 1 = $40,000 Income Limit, whichever is less, is the most Step 3: $40,000 - $5,000 = $35,000 we will pay. For the remainder, you will The total "business income" loss recovery, after either have to rely on other insurance or deductible, would be $35,000. absorb the loss yourself. 4. Coinsurance - Coverages other than Business b. Coinsurance applies separately to each Income insured location. Coverages other than Business Income may be C. If you report a single "business income subject to coinsurance if so indicated in the estimated annual value" for more than one Declarations. Jf a Co.insurance percentage is location, 1,,vithout providing information on shown in the Declarations, the following how that amount should be distributed condition applies. among the locations, we will distribute the a. We vvill not pay the foll amount of any loss amount evenly among all applicable if the value of the property subject to the locations. coverage at the time of the ·'accident" times EXAMPLE 1 (Underinsurance) the Coinsurance percentage shown for it in When: the Declarations is greater than the applicable limit. The "business income actual annual value" at the location ofloss at the time of the "accident'' lnstead, wt, will detcnninc the most we will is $200.000. pay using the following steps: The "business income estimated annual value'' (I) Multiply the value of the property shown in the Declarations for the location of subject to the coverage at the time of loss is S 100,000. the ''accident'· by the Coinsurance The actual loss of''business income" resulting percentage; from the "accident" is $40,000. (2) Divide the applicable limit by the amount determined in step(]); The Business lncome limit is $100,000. (3) Multiply the total amount ofloss. The Business Income deductible is $5,000. before the application of any Includes copyiight material of Insurance Servic\;S Office. Inc. with its p1.'.'n11issit):n. 9 or 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 172 of 197 deductible, by the amount control. When we do this, it will be at our determined in step (2); and expense. (4) Subtract the deductible from the 6. Duties in the Event of Loss or Damage amount determined in step (3). You must see that the following are done in the We will pay the amount determined in step event of loss or damage: (4) or the applicable limit, whichever is a; Give us a prompt notice of the loss or less. For the remainder, you will either have damage, including a description of the to rely on other insurance or absorb the loss property involved. yourself. - b. You must reduce your loss, damage or b. Coinsurance applies separately to each expense, if possible, by: insured location. ( 1) Protecting property from fmther EXAMPLE 1 (Underinsurance) damage. We will not pay for your When: failure to protect property, as stated The actual value of"perishable goods'' at the in Exclusion B.l.g.; location of loss at the time of the "accident" is (2) Resuming business, partially or $200,000. completely at the location ofloss or The Perishable Goods limit is $100,000@ 80% at another location; coinsurance. (3) Making up lost business within a The loss under Perishable Goods coverage reasonable amount of time. This resulting from the "accident" is $60,000. includes working extra time or overtime at the location ofloss or at The Perishable Goods deductible is $5,000. another location. The .reasonable Step 1: $200,000 x 80% = $160,000 amount of time docs not necessarily Step 2: $100,000/$160,000 = .625 end when the operations are Step 3: $60,000 x .625 = $37,500 resumed; Step 4: $37,500 - $5,000 = $32,500 (4) Using merchandise or other property The total Perishable Goods loss recovery, after available to you; deductible, would be $32,500. For the (5) Using the property or services of remainder, you will either have to rely on other others; and insurance or absorb the loss yourself. (6J Salvaging the damaged property. EXAMPLE 2 (Adequate insurance) C. Allow u~ a reasonable time and opportunity When: to examine the property and premises The actual value of"pe.rishable goods" at the before repair or replacement is undertaken location of loss at the time of the "accident" is or physical evidence of the "accident" is $100,000. removed. But you must take whatever measures are necessary for protection from The Perishable Goods limit is $100,000 @. 80%, further damage. comsurance. cl. Make no statement that will assume any The loss under Perishable Goods coverage resulting from the "accident" is $60,000. obligation or admit any liability, for any loss, damage or expense for which we may The Perishable Goods deductible is $5,000. be liable, without our consent. Step I: $100,000 x 80% = $80.000 Pn;imptly send us any legal papers or Step 2: $100,000/$80.000 = 1.25 notices received concern:ing the loss, Coinsurance does not apply. damage or expense. Step 3: $60,000 - $5,000 = $55,000 f. As often as may be reasonably required, The total Perishable Goods loss recovery, after permit us to inspect your property, premises deductible. would be $55,000. and records. Also permit us to take samples of damaged and undamaged property for 5. Defense inspection, testing and analysis, and permit We have the right. hut are not obligated, to us to make copies from your books and defend you against suits arising from claims of records. owners of property in your care, custody or Includes copyiigl1t material of In.stiranee Service;-. Office: h1c. wit11 its pt.~rn1issii)n. IO of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 173 of 197 g. 1f requested, permit us to examine you and under th_is Condition. any of your agents, employees and 8. .Proving Your Loss representatives under oath. We may It is your responsibility, at your own expense, to examine any insured under oath while not provide documentation to us: in the presence of any other insured. Such a. Demonstrating that the loss, damage or examination: expense is the result of an "accident" (J) May be at any time reasonably covered under th.is Equipment Breakclmm required; Coverage; and (2) May be about any matter relating to b. Calculating the dollar amount of the loss, this insurance, your loss, damage or damage an~l expense that you claim is . expense, or your claim, including, covered. but not limited to, your books and Your responsibility in 8.a. above is without records; and regard to whether or not the possible "accident" (3) l\fay be recorded by us by any oc';;urred at your premises or involved your methods we choose. equipment. h. Send us a signed, sworn proof of loss 9. Salvage and Recoveries containing the information we request. You When. in connection with any loss under this must do this within 60 days after our Equip;nent Breakdown Coverage, any salvage or request. recove1y is received after the payment for such i. Cooperate with us in the investigation and loss. the amcmnt of the loss shall be refigured on settleme[).t of the claim. the basis on which it would have been settled 7. Errors and Omissions had the amount of salvage or recove1y been a. We will pay your loss covered by this known at the time the loss was originally Equipment Breakdown coverage if such dctcnnined. Anv amounts thus found to be due loss is othe1wise not payable solely because either party fr01;1 the other shall be paid of any of the following: promptly. ( 1) Any error or unintentional omission 10. Valuation in the description or location of \Ve will deternline the value of"covered property as insured under this property" as follows: policy; a. Except as specified otherwise, our payment (2) Any failure through eITor to include for damaged "covered property" will be the any premises m,11ecl or occupied by smallest of: you at the inception of this policy; or ( 1) The cost to repair the damaged (3) Anv error or unintentional omission property; by you that results in cancellation of (2) The cost to replace the damaged any premises insured under this property on the same site; or policy. (3) The amount you acrnally spend that b. No coverage is provided as a result of any is necessary to repair or replace the error or unintentional omission by you in damaged property. the reporting of values or the coverage you b. The amount of our payment will be based requested. on the most cost-effective means to replace C. Tt is a condition of this coverage that such the function. capacity and remaining usefol errors or unintentional omissions shall be life of the damaged properly. This may reported and corrected when discovered. include the use of generic, used or The policy premium will be adjusted reconditioned parts. equipment or property. accordingly t:o reflect the date the premises C. Except as described in d. below, you must should have been added had no error or pay the extra cost ofreplacing damaged omission occurred. property with property of a better kind or d. If an Errors and Omissions limit is shown· quality or of a different size or capacity. on the Declarations, we will not pay more d. Environmental, Safety and Efficiency than the .indicated amount for coverage Improvements fndrn.k~ copyright matt'rial of Insurance Sl"rvicGs Office. Inc. with its p1.."nnission. 11 of l8 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 174 of 197 If"covercd equipment'' requires "media" will be valued on the following replacement due to an "accident,'' we will basis: pay your additional cost to replace with ( l) For mass-produced and equipment that ;vc agree is better for the commercially available software, at environment, safer for people or more the replacement cost. energy efficient than the equipment being (2) For all other "data" and "media," at replaced, subject to the following the cost of blank "media" for conditions: reproducing the records. We will not (1) We will not pay more than 150% of pay for "data" representing financial what the cost would have been to records based on the face value of replace vvith like kind and quality; such records. (2) We will not pay to increase the size h. Air conditioning or refrigeration equipment or capacity of the equipment; that utilizes a refrigerant containing CFC (3) This provision only applies to ( chlorofluorocarbon) substancL,s will be Prope1ty Damage coverage; valued at the cost to do the least expensive (4) This provision does not increase any of the following: of the applicable limits; (l) Repair or replace the damaged (5) This provision does not apply to any property and replace any lost CFC prope1ty valued on an Actual Cash refrigerant; Value basis; and (2) Repair the damaged property, (6) This provision does not apply to the retrofit the system to accept a non replacement of component parts. CFC refrigerant and charge the system with a non-CFC refrigerant; e. The following property will be valued on an Actual Cash Value basis: or (3) Replace the system with one using a ( 1) Any property that does not currently non-CFC refrigerant. serve a useful or nccessaiy function for you; Jn determining the least expensive option, (2) Any "covered property" that you do we will include any associated Business Jncome or Extra Expense loss. If option (2) not repair or replace within 24 months after the date of the or (3) is more expensive than (1), but you "accident''; and wish to retrofit or replace anyway, we will co!l',ider this better for the environment and (3) Any "covered property" for which therefore eligible for valuation under Actual Cash Value coverage is paragraph d., Environmental, Safety and specified in the Declarations. Efficiency Improvements. In such case, , Acnml Cash Value includes deductions for E.10.d.(l) is amended to read: "We will not depreciation. pay more than 125% of what the cost f. If any one of the following conditions is would have been to repair or replace \\'ith met, properly held for sale by you will bl~ like kind and quality." valued at the sales price as ifno loss or ADDITIONAL CONDITIONS damage had occmred, less any discounts The following conditions apply in addition to the and expenses that otherwise would have Loss Conditions: applied: l. Additional Insured ( l ) The prope1ty was manufactured by you; If a person or organization is designated in this Equipment Breakdm,11 Coverage as an (2) The sales price of the property is additional insured, we will consider them to be less than the replacement cost of the an insured under this Equipment Breakdown property; or Coverage only to the extent of their interest in l3) You arc unable to replace the the "covered property." property before its anticipated sale. 2. Bankrnptcy (1 o· Except as specifically provided for under The bankruptcy or insolvency of you or your Data Restoration coverage, "data'' and Include, copy1ight material of lnsrn:mce Services Office. Inc. wi1h its pcnni:;sion. 12 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 175 of 197 estate will not relieve you or us of any (l) This Equipment Breakdown obligation under this Equipment Bre~kdown Coverage; Coverage. (2) The "covered property"; 3. Cancellation (3) Your interest in the "covered a. The first Named Insured shown in the property''; or Declarations may cancel this policy by (4) A claim under this Equipment mailing or delivering to us advance \Witten Breakdown Coverage. notice of cancellation. 6. Examination of Your .Books and· Records h. \Ve may cancel this policy by mailing or We may examine and audit your books and delivering to the first Name Includes copyright material of lns,1rance Servil'l:!5 Office: Inc. with its pcnnissil)H. 13 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 176 of 197 a. There has been full compliance with all the equipment" to you and each mo1tgage tem1S of this Equipment Breakdown holder shown in the Declarations in their Coverage; and order of precedence, as interests in the b. The action is brought within two years after ·'covered property" may appear. the date of the "accident'' or c. The 11101tgage holder has the right to c. \Ve agree in writing that you have an receive loss payment even if the mortgage obligation to pay for damage to "covered holder has started foreclosure or sirnilar property'' of others or until the amount of action on the ''covered property.'" that obligation has been determined by d. lfwe deny your claim because of your acts final judgment or arbitration award. No one or because you have failed to comply with has the right under this policy to bring us the terms of this Equipment Breakdown into an action to determine your liability. Coverage, the mortgage holder will still l 0. Liberalization have the right to receive loss payment, provided the mortgage holder docs all of Ifwc adopt any standard form revision for the following: general use that would broaden the coverage under this Equipment Breakdown Coverage ( l) Pays any premium due under this without additional premium, the broadened Equipment Breakdown Coverage at coverage will apply to this Equipment our request if you have failed to do Breakdown Coverage commencing on the date so; that such revision becomes effective in the (2) Submits a signed, sworn proof of loss jurisdiction where the "accident'' occurs. within 60 days after receiving notice 11. Loss Payable from us of your failure to do so; a. We will pay you and the loss payee shm,11 (3) Has notified us of any change in in the Declarations for loss covered by this ov,:11ership or material change in risk Equipment Breakdown Coverage, as knm,11 to the mortgage holder; and .interests may appear. The .insurance covers (4) Has complied with all other terms the interest of the loss payee unless the loss and conditions of this Policy. results from conversion, secretion or All of the tcnm of this Equipment embezzlement on your part or on the part Breakdown Coverage will then apply of the loss payee. directly to the mortgage holder. b. We may cancel the policy as allowed by the e. Ifwe pay the mortgage holder for any loss Cancellation Condition. Cancellation ends and deny payment to you because of your this agreement as to the loss payee's acts or because you have failed to comply interest. Ifwe cancel, we will mail you and with the terms of this Equipment the loss payee the same advance notice. Breakdow11 Coverage: c. Ifwc make any payment to the loss payee, (l) The mortgage holder's right under we will obtain their rights against any other the mortgage will be transfcned to party. us lo the extent of the amount we 12. Maintaining Your Property and Equipment pay; and It is your responsibility to appropriately (2) The mortgage holder's right to maintain your property and equipment. We will recover the full amount of the not pay your costs to maintain, operate, protect mortgage holder's claim will not be or enhance your property or equipment, even if impaired. such costs arc to comply with our Al our option, we may pay lo the mortgage recommendations or prevent loss, damage or holder the whole principal on the mortgage expense that would be covered under this plus any accrued interest. .lo this event, policy. your mortgage and note will be transferred 13. Mortgage Holders to us and you \viii pay your remaining a. The term mortgage holder includes trustee. mortgage debt to us. b. We will pay for direct damage to '·covered f. lfwc cancel this policy, ,vc will give property" due to an ''accident'' to "covered written notice to the mortgage holder at least: Indude~ copyright matt'rial of fnsurance Sl'1-vices Office. lne_ with i1s pt'rmission. 14 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 177 of 197 (I) 10 days before the effective date of property with the owner of the property. cancellation ifwe cancel for your Settlement with ovmers of that property will nonpayment of premium; or satisfy any claim of yours. (2) 30 days before the effective date of 18. Suspension cancellation ifwe cancel for any \,\!henever "covered equipment" is found to be other reason. in, or exposed to, a dangerous condition, any of g. lfwe elect not to renew this policy, we will our representatives may immediately suspend give written notice to the mortgage holder the insurance against loss from an "accident" to at least l O days before the expiration date that "covered equipment." This can be done by of this policy. delivering or mailing a \,\,Titten notice of h. lfwe suspend coverage, it ,vill also be suspension to: suspended as respects the mortgage holder. a. Your last kt1m\.TI address; or We will give written notice of the b. The address where the "covered suspension to the mortgage holder. equipment" is located. 14. Other Insurance Once suspended in this way, your insurance can If there is other insurance that applies to the be reinstated only by an endorsement for that same loss, damage or expense, this Equipment "covered equipment." Breakdown Coverage shall apply only as excess Ifwe suspend your insurance, you v.,ill get a pro insurance afler all other applicable insurance has rara refund of premium for that "covered been exhausted. equipment" for the period of suspension. But the 15. Policy Period, Coverage Territory suspension will be effective even ifwe have not Under this Equipment Breakdov,TI Coverage: yet made or offered a refund. a. The "accident" must occur during the 19. Transfer of Your Rights and Duties Under Policy Period, but expiration of the policy This Policy does not limit our liability. Your rights and duties under this policy may not b. The "accident" must occur within the be transferred without our ,\-Titten consent fol!m,~ng Coverage Territ01y: except in the case of death of an individual (I) The l.Jnited States of America Named Insured. (including its ten-irories and If you die, your rights and duties will be possessions); transferred to your legal representative but only (2) Puerto Rico; and while acting within the scope of duties as your (3) Canada. legal representative. Until your legal representative is appointed, anyone having C. With respect to Off Premises Property proper temporary custody of your property will Damage coverage only, the ·'accident" may have your rights and duties but only with respect occur in any country except one in which to that property. the United States has imposed sanctions, embargoes or similar restrictions on the 20. Transfer of Rights of Recovery Against provision of insurance. Others to Us 16. l'remiums If any person or organization to or for ,,.vhom we make payment under this Equipment Breakd9wn The first Named Insured shown in the Coverage has rights to recover damages from Declarations: another, those rights are transferred to us to the a. ls re.sponsible for the payment of all extent of our payment. That person or prerninms; and organization must do everything necessmy to b. Will be the payee for any return premiums secure our rights and must do nothing after loss \Ve pay. to impair them. But you may waive your rights against another party in writing: 17. Privilege to Acl_just with Owner a. Prior to an "accident.'" Jn the event of loss, damage or expense .involving property of others in your care. b. AJter an '·accident'" only if: at time of the custody or control, \Ve have the right to settle the '·accident,"' that party is one of the loss, damage or expense with respect to such following: Includes copy1ight material of Insurance Services OffiCL': Inc. with its permission. 15 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 178 of 197 (]) Someone insured by this Policy; or following services within the building: heating, (2) A business firm: ventilating, air conditioning. electrical power, hot water, elevator or escalator services, natural (a) Owned or controlled by you; or gas service or communications. "Building (bJ That owns or controls you. utilities" does not include personal property or G. DEFINITIONS equipment used in manufacturing or processing. l. "Accident" 5. "Buried Vessels or Piping" means any piping a. ''Accident" is defined in A. I .a. or vessel buried or encased in the earth, concrete b. None of the following is an ·'accident,'' or other material, whether above or below grade, however caused and without regard to or in an enclosure which does not allow access whether such condition or event is nonnal for inspection and repair. and expected or unusual and unexpected: 6. "Business Income" means the sum of: 0) Depletion, deterioration, rnst. a. The Net Income (net profit or loss before corrosion, erosion, settling or wear income taxes) that would have been earned and tear; or incuJTed; and (2) Any gradually developing condition; b. Continuing normal and necessary operating (3) Any defect, programming error, expenses incurred, including employee programming limitation, computer payroll. virus, malicious code, loss of''data," 7. "Business Income Actual Annual Value'' loss of access, loss of use, loss of means the "business income" for the cunent functionality or other condition fiscal year that would have been earned had no within or involving "data" or "accident'' occurred. "media'' of any kind; 1n calculating the "bus.iness income actual (4) Contamination by a ''hazardous am1ual value,'' we will take into account the substance''; or actual experience of your business before the (5) Misalignment, miscatibration, ·'accident'' and the probable experience you tripping off-line, or any condition would have had without the "accident.'' which can be corrected by resetting, 8. "Business Income Estimated Annual Value'' tightening, adjusting or cleaning, or means the anticipated ''business income'' by the performance of maintenance. reported to us and shown in the Declarations. If 2. "Anchor Location'' means a location, operated no value is shown in the Declarations. the by others, upon which you depend to attract ''business income estimated annual value'' wilt customers to your location. An ''anchor be the most recent repo1t of anticipated location'' must have been open for business for at "business income'' values on file with us. least six months prior to the "accident," and must 9. "Covered Equipment" be located within one mile of your location. a. "Covered Equipment'' is defined in A.Lb. 3. "Boilers and Vessels" means: b. None of the following is "covered a. Boilers; equipment": b. Steam piping; ( 1) Structure. including but not limited to c. Piping that is part of a closed loop used to the structural portions of buildings and conduct heat: from a boiler; towers, and scaffolding; d. Condensate tanks; and (2) Foundation: e. Unfired vessels ,vhich, during normal (3) Cabinet, comparrmenr, conduit or usage, operate under vacuum or pressure, ductwork; other than the weight of contents. (4) Insulating or refractory material; This term does not appear elsewhere in this (5) "Buried vessels or piping"; coverage form, but may appear in the (6) \Vaste, drainage or sewer piping; Declarations. (7) Piping, valves or fittings forming a part 4. "Building l.Jti.lilics" means "covered of a sprinkler or fire suppression cquipmem'' permanently mounted on or in a system; building and used to provide any of the Indw.ks copyright material nf Insura11ce Servic~s Office. Inc. with its pc-rmission. lfi ol' 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 179 of 197 (S) Water piping that is not part of a closed (3) Engine-generators; loop used to conduct heat or cooling (4) Fuel cells or other alternative electrical from a boiler or a refrigeration or air generating equipment; ctinditioning system; (5) Electrical transformers, switchgear and (9) ·'Vehicle" or any equipment mounted power lines used lo convey the on a "vehicle"; generated electricity; and ( l 0) Satellite, spacecraft or any equipment (6) Associated equipment necessary for the moumed on a satellite or spacecraft; operation of any of the equipment listed (11) Dragline, excavation or construction in (1) through (5) above. equipment; b. ';Electrical Generating Equipment" does ( 12) Equipment manufactured by you for not mean: sale; or (1) Elevator or hoist motors that generate (13)''Data." electricity when releasing cable; or 10. "Covered Property" (2) Equipment intended to generate a. ·'Covered Property" means property that electricity solely on an emergency, you O\\e11 or property that is in your care, back-up basis. custody or control and for which you are This term does not appear elsewhere in this legally liable. Such property must be at a coverage form, but may appear in the location described in the Declarations Declarations. except as provided under Off Premises 13. "Extra Expense" means the additional cost you Property Damage coverage. incur to operate your business over and above b. None of the following is "covered the cost that you normally would have incurred property'': to operate your business during the same period ( l) Accounts, hills, currency, deeds or had no "accident" occurred. other evidences of debt; money, notes 14. "Hazardous Substance" means any substance or securities; that is hazardous to health or has been declared (2) Fine a1ts, jewelry, fors or precious to be hazardous to health by a governmental stones; agency. (3) Precious metal, unless fomiing a pa1t of 15. "Interruption of Service'' "covered equipment"; a. "lnte111.1ption of Service'· means a failure or (4) Animals; disruption of the nom1al supply of any of (5) Contraband, or property in the course the Covered Services listed in b. below, of illegal transportation or trade; when such failure or disruption is caused by an "accident'' to ·'covered equipment," (6) Land (including land on which the subject to the conditions listed in c. through property is located), water, trees, f. below. growing crops or lavms; or b. Covered Services are electrical power, (7) Shrubs or plants, unless held indoors waste disposal, air conditioning, for retail sale. refrigeration, heating, nat11ral gas, 11. "Data" means information or instructions stored compressed air, water, steam, internet in digital code capable of being processed by access, telecommunications services, wide machinery. area networks and data transmission. 12. "Electrical Grnerating Equipment" c. The "covered equipment" must either be: a. ·'Electrical Generating Equipment" means (l) Owned by a company with whom you equipment which converts any other form have a contract· to supply you with one of energy into electricity. This includes, bul of the Covered Services; or is not limited to, the following: (2) Used to supply you with one of the (I) Boilers used primarily to provide steam Covered Services and located within for one or more turbine-generator units; one mile ofa location described in the (2) Turbine-generators (including steam, Dcclaralions. gas, water or wind turbines): d. 1r a Service lnterruption Distance fncludes copyrig!H nrnterial nf Ins11rance Servicl!s (Jffice~ Inc. with its p1.:"nnissit)n. 17 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20• Page 180 of 197 Limitation is indicated in the Declarations, payroll, employee benefits directly related to the ·'covered equipment" suffering the payroll, FICA payments you pay, union dues "accident" must be located within the you pay and workers compensation premiums. indicated distance of any location described "Ordinary payroll" does not include pensions or in the Declarntions. directors fees. Unless otherwise shown in the This term does not appear elsewhere in this Declarations, no failure or disruption of coverage form, but may appear .in the service will be considered to qualify as an Declarations. "interruption of service" until the failure or 20. "Period of Restoration" means the period of disruption exceeds 24 homs immediately time that begins at the time of the ·'accident" and following the ·'accident." continues until the earlier of: f. ·'Jnte1rnption of service" docs not include a. The date the physical damage to "covered any failure or disruption, whether or not equipment'' is repaired or replaced; or arising from or involving an "accident," in b. The date on which such damage could have which a supplier could have continued to provide service to the location but chose been repaired or replaced with the exercise for any reason to reduce or discontinue of due diligence and dispatch, · se1vice. plus the number of days, if any', shmvn .in the 16. "Interruption of Supply" Declarations for Extended Period of Restoration. a. "Interruption of Supply" means a failure or As respects Civil Authority coverage only, disruption of the nonnal supply of any of "period of restoration" means the period of time the Covered Contingencies listed below, that begins as of the time access is prohibited by when such failure or disruption is caused action of the civil authority and continues until bv an ·'accident" to "covered equipment" the earlier of: that is located at a-Contingent Business (a) 21 days thereafter; or Income supplier or receiver location (b) The date access is restored. indicated in the Declarations. If no 21. "Perishable Goods" means any ·'covered Contingent Business Income supplier or property'· subject to deterioration or impairment receive~- location is indicated in the as a result of a change of conditions, including Declarations, the "covered equipment" but not limited to temperature, humidity or must be owned by a supplier from whom pressure. vou have received die Covered 22. "Production l\lachinery" means any machine C'ontingency for at least six months prior to or apparatus that processes or produces a the "accident" or a receiver to whom you product intended for eventual sale. This includes have suppLied the Covered Contingency for all component parts of such machine or at least six months prior to the ·'accident.'' apparatus and any other equipment used b. Covered Contingencies are raw materials, exclusively with such machine or apparatus. intermediate products, finished products, However, "production machinery'' does not packaging materials and product processing mean any boiler, or fired or unfired pressure services. vessel. 17. "M.edia" means material on which "data" is This term does not appear elsewhere in this recorded, such as magnetic tapes, hard disks, coverage form, but may appear in the optical disks or floppy disks. Declarations. 18. "One Accident" means all "accidents"' 23. "Spoilage" means any detrimental change in occurring at the same time from the same event. state. This includes but is not limited to thawing If an "accident'' causes other "accidents." all ,viii of frozen goods, warming of refrigerated goods, be considered ·'one accident." freezing of fresh goods, solidification ofliquid 19. •'Ordinary Payroll" means the Payroll or molten material and chemical reactions lo Expenses associated with all employees other material in process. than executives, department managers and 24. "Vt'hiclt'" means any machine or apparatus that employees under contract. is used fr;r transportation or moves under its O\v11 As used above, Payroll Expenses means all power. ·'Vehicle" includes, but is not limited to, ln1..~Jude;-; cnpytight n1aterial of Insurance Services ()ffice. Inc. with its p~nnissi\)ll. 18 of 18 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20• Page 181 of 197 car, truck. bus, trailer, train, aircraft, watercra!i, forklift. bulldozer, tractor or harvester. However. any property that is stationary, permanenrly installed at a covered location and that receives electrical power from an external power source will not be considered a "vehicle.'' lndudes copyright material of Insurance SL"rvicl!s Office. Inc. with its JJL'n11ission. J() or 13 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 182 of 197 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20• Page 183 of 197 CLAI:VTS ADJUSTTNG GROUP, [NC. July 14, 2020 DANIEL SCHLESSINGER JASZCZUK P.C. 311 S. WACKER DRIVE, SUITE 3200 CHICAGO, IL 60606 RE: CIBA Member: 644 Broadway LLC CIBA Claim No.: See Exhibit A Policy Number: ClBA-000002-00 PIO No.: See Exhibit A Date of Loss: March 23, 2020 Loss Location: See Exhibit A Cause of Loss: Coronavirus Dear Mr. Schlessinger: Claims Adjusting Group, Inc. (CAG) is the authorized claims administrator for Falls Lake National Insurance Company (Falls Lake) in connection with claims reported in the Commercial Industrial Building Owner's Alliance (CIBA) Insurance Program. This letter further responds to your claim for insurance coverage under the above referenced Falls Lake policy for Loss of Income. Falls Lake National Company provides a policy of insurance to 644 Broadway LLC under policy number CIBA-000002-00 for the properties listed in Exhibit A. The inception date was January 1, 2020 and expiration date is January 1, 2021. On April 7, 2020, CAG initiated an investigation into your claim with respect to reported Loss of Income. We contacted Chris Wight, Cypress Properties, to obtain information regarding the insured member's claim. On June 1, 2020, we received correspondence from your office advising that you had been retained to represent 644 Broadway LLC for this claim. You have advised that the loss locations suffered a Loss of Income as a result of multiple tenants not paying rent, and anticipate additional tenants will be unable to pay rent in the future. However, after submitting your list of rents owed, you advised that there was no loss of income for the apartment units at this time. You have advised you are not sure when this loss of revenue will stop for the commercial units, as you see this issue as ongoing. You confirmed that you are not aware of any positive cases of Covid- 19 at the insured premises. 655 Nnrrh Central Avenue Suite '.2100 I Clrndak CA. 91203 ; -.J.70 225-%Ci'4 .f 813 633 8530 License # 2D726(J(1 Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 184 of 197 CLA!1VIS /\0_1us·r1NC GROUP, lNC. You provided a spreadsheet for the properties detailing the units that have not paid rent and the amount of rent owed, please see Exhibit A. Based on your email of July 2, 2020, advising that no loss of income has occurred for the residential units, I have excluded those from the calculations. We have thoroughly reviewed the facts, documents, information you provided and the government issued orders as well as the terms, provisions and conditions of your policy. Based on this review, unfortunately, there is no coverage under the policy for your claim. Among other coverages, your policy provides coverage for Loss of Income, Extra Expense and Emergency Vacating Expenses. However, Loss of Income coverage requires that the actual Loss of Income result directly from the untenantability caused by direct physical loss, damage, or destruction ... to real or personal property as described in 6. a. Extra Expense coverage requires that reasonable and necessary expenses would not have occurred if there had been no direct physical loss or damage to property caused by or resulting from a peril insured against. While the policy provides coverage as a result of prohibited access because of Interruption by Civil or Military Authority, this coverage also requires the expense be incurred as a direct result of physical damage within five (5) miles of the premises by an insured peril insured against. Emergency Vacating Expense are covered to the extent as reasonable but require that an authorized governmental agency or other similar authority order the emergency evacuation as a result of an immediately impending insured peril that threatens imminent physical danger or loss of life to such occupants. There is no coverage for your claim as there was no direct physical loss to real or personal property at the insured premises; no physical damage within five (5) miles of the insured premises by a peril insured against; and, there were no governmental agencies or other similar authorities requiring emergency evacuations due to an impending insured peril threatening imminent physical danger or loss of life. In addition, there is no coverage for your claim because your policy, at Section 7. Perils Excluded, excludes coverage for loss or damage caused by, resulting from, contributed to or made worse by actual, alleged or threatened release, discharge, escape or dispersal, seepage or migration of "contaminants or pollutants" all whether direct or indirect, proximate or remote or in whole or in part caused by, contributed to or aggravated by any physical damage insured by the policy. The policy defines "Contaminants or Pollutants" as "Any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste, l .iccn~c # 2D726UU Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20• Page 185 of 197 CLAJivrs ADJUSTING GnouP, lNc. which after its release can cause or threaten damage to human health or human welfare or causes or threatens damage, deterioration, loss of value, marketability or loss of use to property insured hereunder, including but not limited to bacteria, virus, or hazardous substances as listed in the Federal Water, Pollution Control Act, Clean Air Act, Resource Conservation and Recovery Act of 1976, and Toxic Substances Control Act or as designated by the U. S. Environmental Protection Agency. Waste includes materials to be recycled, reconditioned or reclaimed."(emphasis added) Please refer to your policy, where it states, in part: "6. COVERAGE Except as hereinafter excluded, this policy covers the following described property including the actual Loss of Income sustained by the Named Insured at location(s) described in the applicable Declarations page issued to the Named Insured a. (1) Real Property The interest of the Named Insured in all real property, including improvements and betterments, foundations and supports, flues, wiring and plumbing, owned, used, or intended for use by the Named Insured, or hereafter constructed, erected, or installed. If not covered by other insurance: (a) additions under construction, alterations and repairs to "buildings" or structures and (b) materials, equipment, supplies and temporary structures, on or with in 100 feet of the location described in the Declarations page, used for making additions, alterations or repairs to the "buildings" or structures. In the event of loss or damage, the Company agrees to accept and consider the Named Insured as sole and unconditional owner of improvements and betterments, notwithstanding any contract or leases to the contrary. The interest of the Named Insured in the Real Property of others in the Named lnsured's care, custody, or control, and the Named lnsured's liability imposed by law or assumed by written contract for such property. Contractors' interest in real property is covered to the extent of the Named lnsured's liability imposed by law or assumed by written contract. (j.'i:':i North Ccntr:11 .:\venue Suite 210Ci Clenchtlc, C.·\ 91203 :-PO :22.'i-%(i4 _f818 6388530 Liccn~c # 21)726((! Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20• Page 186 of 197 CLAli\IS ADJUS'IJNG GROUP, lNC. Personal property owned by the Named Insured that is used to maintain or service the "buildings" or structures or the premises, including fire extinguishing equipment, outdoor furniture, floor coverings, and appliances used for refrigerating, ventilating, cooking, dishwashing or laundering. b. Loss of Income (1) This policy is extended to cover the actual Loss of Income sustained by the Named Insured resulting directly from the necessary untenantability caused by direct physical loss, damage, or destruction by any of the perils covered herein during the term of the policy to real or personal property as described in clause 6. a., but not exceeding the reduction in income less charges and expenses which do not necessarily continue during the period of untenantability, not to be limited by the expiration date of this policy. *** (8) Special Exclusion This section of the policy does not insure against any increase of loss which may be occasioned by the suspension, lapse, or cancellation of any lease, license, contract, or order nor for any increase of loss due to interference at the Named lnsured's designated premises by strikers or other persons with rebuilding, repairing, or replacing the property damaged or destroyed, or with the resumption of continuation of business, or with the re occupancy of the premises. *** c. Extra Expense Extra Expense means reasonable and necessary expenses incurred by the Named Insured during the period of interruption that the Named Insured would not have incurred if there had been no direct physical loss or damage to property caused by or resulting License# 2D726u11 Case 4:20-cv-08421-JST• Document 1-1 Filed 11/30/20• Page 187 of 197 CLALVIS ADJUS'flNG GROUP, INC. from a peril insured against. Extra Expense does not change, add, or otherwise alter the limits of liability as sei: forth in the Declarations page or in Clause 2.b. as set forth herein. *** (4) Tenant Relocation Expense This policy is extended to cover relocation expenses incurred by the Named Insured to relocate residents, tenants or lawful occupants to other living quarters in the shortest possible time when rented space or living quarter(s) at a described location are made uninhabitable as a direct result of physical loss or damage from a peril insured by this policy. *** (b) No coverage is provided for: (i) Loss caused by the termination of a lease or other agreement; (ii) Security deposits or other payments made to the landlord or lessors of the new living quarters; (iii) Down payments, legal fees and closing costs for the purchase of new living quarters; or; (iv) Loss resulting from Off Premises Services Interruption, Interruption by Civil or Military Authority, or Ingress/Egress except as otherwise provided in Clause 6 d. (1), (2), and {3). The limit of liability will not exceed the applicable limit of insurance shown in the sublimits of Clause 2.b. d. Provisions Applicable To Loss of Income and Extra Expense (1) Off-Premises Services Interruption l .iccnse # 2D7'.26(l(J Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 188 of 197 CLA1:v1s An_1us·r1Nc GnouP, lNc. This policy is extended to cover the actual loss sustained and necessary Extra Expense incurred during the period of time when, as a direct result of physical damage within five (5) miles of the premises by a peril insured against, electrical, steam, gas, water or telephone services to the "described premises" are interrupted. (2) Interruption by Civil or Military Authority This policy is extended to cover the actual loss sustained and necessary Extra Expense incurred during the period of time when, as a direct result of physical damage within five (5) miles of the premises by a peril insured against, access to the "described premises" is prohibited by order of civil or military authority. The maximum period of indemnity in respect of this extension shall not exceed 30 consecutive days from the date of that order. (3) Ingress/Egress This policy is extended to cover the actual loss sustained and necessary Extra Expense incurred during the period of time when, as a direct result of physical damage within five (5) miles of the premises by a peril insured against, access to the "described premises" is prohibited by order of civil or military authority. The maximum period of indemnity in respect of this extension shall not exceed 30 consecutive days from the date of that order. *** i. Emergency Vacating Expense This policy is extended to cover the reasonable expenses incurred by the Named Insured when an authorized governmental agency or other similar authority orders the emergency evacuation of residents, tenants or lawful occupants from an insured "building" as a result of an immediately impending insured peril that threatens imminent physical danger or loss of life to such occupants, but not to exceed the applicable limit of insurance shown in the policy. <>55 '.\.",)r.h Central ·\Ycnuc Suire 21(i(i Clcndalc. C·\ 91203 r--l-7U 225-%()'--i (818 (J'.JS--8:'i'.lO License # 21)72(,UU Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 189 of 197 CLA!iVIS ADJUSTlNG GI{OUP, INC. No coverage is provided if the vacating results from a planned evacuation drill, evacuation of any resident because of a medical condition(s), or a false alarm. The limit of liability will not exceed the applicable limit of insurance shown in the sublimits of Clause 2.b." *** "7. PERILS EXCLUDED a. This policy does not insure against loss or damage caused directly or indirectly by, to, or resulting from any of the following. Loss or damage is excluded regardless of any cause or event whether or not insured under this policy that contributes concurrently or in any sequence to the loss or damage. *** c. This policy does not cover loss or damage caused by, resulting from, contributed to or made worse by actual, alleged or threatened release, discharge, escape or dispersal, seepage or migration of "contaminants or pollutants" all whether direct or indirect, proximate or remote or in whole or in part caused by, contributed to or aggravated by any physical damage insured by this policy. *** e. The Company will not pay the expense to: (1) Extract "contaminants or pollutants" from debris; or (2) Extract "contaminants or pollutants" from land or water; or (3) Remove, restore or replace contaminated or polluted land or water; or (4) Remove or transport any property or debris to a site for storage or decontamination required because the property or debris is affected by pollutants or contaminants, whether or not such J.icense # 21)72(i(11) Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 190 of 197 CLAJIVIS ADJUSTING GROUP, lNC. removal, transport, or decontamination is required by law or regulation. It is a condition precedent to recovery under this extension that the Company shall have paid or agreed to pay for direct physical loss or damage to the property insured hereunder and that the Named Insured shall give written notice to the Company of its intent to claim for the cost of removal of debris or cost of clean-up not later than twelve months after the date of such loss or damage. f. Notwithstanding any of the provisions of this policy, the Company shall not be liable for loss, damage, costs, expenses, fines or penalties incurred or sustained by or imposed on the Named Insured at the order of any government agency, court or other authority arising from any cause whatsoever. " "11. POLLUTION CLEANUP AND REMOVAL COSTS Notwithstanding the provisions of Clause 7.c. or any provision respecting seepage and/or pollution and/or contamination, and/or debris removal and/or cost of cleanup, in the event of direct physical loss or damage to the property insured hereunder that is directly caused by or results from one or more of the following causes that occurs during the policy period as set forth in the Declarations page: Fire; Lightning; Explosion; Windstorm; Hail; Smoke; Vehicles; Aircraft; Civil disturbance; Riot; Sprinkler Leakage; Leakage from fire extinguishing equipment; Weight of snow, ice or sleet; "Water Damage" except as otherwise excluded in this Policy. l .icrnsc # 2D72(,u(I Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 191 of 197 :!'13fi~,\...¢,,,, CLAIMS ADJUSTfNG GROUP, lNC. This policy (subject otherwise to its terms, conditions and limitations, including but not limited to any applicable deductible) also insures: a. expenses reasonably incurred in removal of debris of the property insured hereunder destroyed or damaged from the location of the loss; and/or, b. cost of cleanup, at the location of the loss, made necessary as a result of such direct physical loss or damage; and/or, c. cost of pollution cleanup; not to exceed the policy sub-limit specified in Clause 2.b. It is a condition precedent to recovery that the Company shall have paid or agreed to pay for direct physical loss or damage to the property insured hereunder unless such payment is precluded solely by the operation of any deductible and that the Named Insured shall give notice to the Company of intent to claim for cost of removal of debris or cost of cleanup NO LATER THAN 12 MONTHS AFTER THE DATE OF SUCH PHYSICAL LOSS OR DAMAGE." *** "43. DEFINITIONS d. "Contaminants or Pollutants11 Any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste, which after its release can cause or threaten damage to human health or human welfare,or causes or threatens damage, deterioration, loss of value, marketability or loss of use to property insured hereunder, including but not limited to bacteria, virus, or hazardous substances as listed in the Federal Water, Pollution Control Act, Clean Air Act, Resource Conservation and Recovery Act of 1976, and Toxic Substances Control Act or as designated by the U. S. Environmental Protection Agency. Waste in~ludes materials to be recycled, reconditioned or reclaimed." We hope that the foregoing fully and plainly explains why Falls Lake Fire & Casualty Insurance Company has decided to deny your claim. However, if you have additional (>:'):S ~orth C(:11 t:ral 0\vcnuc Suite 2100 Clendak. C.\ 01203 ; -PU 22:')-%()4 / 818 l .icrnse # 2D726U(J Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 192 of 197 CLAJ:VIS ADJUSTING GROUP, lNC. information that you wish us to consider, please do not hesitate to send it to me. Such information will be reviewed under the terms, conditions and provisions of your policy. This letter should not be considered a waiver of any policy terms, prov1s1ons or conditions that are not expressly set forth above. All such provisions and related rights and defenses are specifically reserved. Please note that the policy contains a provision which requires the insured to file any suit or action on the policy within one year of the loss or damage which gives rise to the claim. This Suit provision reads as follows: *** "37. SUIT AGAINST COMPANY No suit, action or proceeding for the recovery of any claim under this policy shall be sustainable in any court of law or equity unless the Named Insured shall have fully complied with all the requirements of this policy, nor unless the same be commenced within twelve (12) months next after inception of the loss provided, however, that if under the laws of the jurisdiction in which the property is located such limitation is invalid, then any such claims shall be void unless such action, suit or proceedings be commenced within the shortest limit of time permitted by the laws of such jurisdiction." *** The policy also provides that coverage and policy provisions will be altered or broadened, as necessary, to conform to any applicable state or local law or regulation. The provision reads as follows: "41. CONFORMITY TO STATUTE Terms of this policy in conflict with the written laws of the state in which the policy is issued are changed to conform to such laws." *** If you believe this claim has been wrongfully disclaimed or rejected, you may have the matter reviewed by the California Department of Insurance, Claims Services Bureau, 11th Floor, 300 South Spring Street, Los Angeles, California 90013, 1-800-927-4357. Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 193 of 197 CLAIMS ADJUS'I'ING GROUP, [NC. If you have any questions concerning your claim or otherwise wish to discuss this further, please do not hesitate to contact me. Sincerely, CLAIMS ADJUSTING GROUP, INC. -K~~~ Kathy Wallace Property Claims Adjuster p: 818-433-8967 e: [email protected] Enclosure: Exhibit A CC: Broker l .icensc # 2D72()UU Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 194 of 197 f\ TTOHNEY OR PAi'HY Vi;'ffHOUT ATTORNEY-(flamo, Sfat& Bf>r nt,mhOt, lind odd~iif Terry J. Mollica, Esq. (SBN 139816) MOLLICA. LAW L:-360 r,R.,;r -,::;rf!:ccT; sli.(~e' 02:o.\ I BF11\Ji''c,{'.,g) (A q4-t-.:;;o TElEPHCNE NO.; 925 239 2380 F suJr/or &rt of lrornip ATTORNEY FOR /Name); Plaintiff 644 Broadwav. LLC County of San Francisco SUP,ERIOR COURT OF CALIFORNIA, COUNTY OF SAN FRANc·1sco STREET AC>DREss:400 Mc.Allister Street SEP 3DIA2Jo MAILING ADDRESS.: crr'r· AND z1P cooE:San Francisco, CA 94102. E COURT SRA}JcH·~.o\&11:cCivil Center. Ccurthouse BY: __....,.....,,...._,....,...~--=- CASE NAME: A, u,,rr;;&.Jvt"\ 644 B;oadway LLC V; Fails lake Fire and Casually Cof11paii)i;.et- • Piainliff must file this cover sheet with the first paper filed .in the aclion or proceeding (except all claims cases or. cases· filed under the Probate Code, Family Code. or Welfare and Jnstitutions Code), (Cal. Rules of Court. rule 3.220.j Failure to file may result in sanctions. • File this cover sheet in addition to any cover sheet required by local court rule. • If this case is complex under rufe 3.400 et seq. of the California Rules of Court, you most serve a copy of this cover sheet on all other parties to the action or.proceeding. • Unless this is a collections case under rule 3.740 or a complex case, this cover sheet will be used for statistical purposes only. Page 1 of 2 F c,rrr, Ad-:.,p!ed tc: MaOOator1 Us~ Caf. Rules of C~wt1 rotes 2.30, :':i.220. SA00-3.403, 3,7,10: J:.1dkii:1! Co;..:r,C:! of CaHcrnia CIVIL CASE COVER SHEET Cal. Sv:mdartis nf J1;dici31 A-dmitiiSt! ;;itlca, std. 3.1 o cri-orn {Rc-v. Jviy 1, 2007] w,YW.courts.ca.gov Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 195 of 197 . INSTRUCTIONS ON H0\11/ TO CPIVIPLETETHE COVER.SHEET . . CM,010 To Plaintiffs and Others Filing First Papers. If you are filing a firstpaper (for.example, a.compfaint)in a civil case;you must complete and file, along with your first paper, the Ciyil Ca~e (;over Sheet contained qn pt=ige 1. This information wiU beJise.d io compile. ) statistics about the types and numbers of cases nietl. YOU must compiefo itertis 1 through 6,on the sheet ln,-\tem 1,. yournust_,check one box for th~ case type that best describes the case. Jfthe case fits both a gen.erai and a more specific type of case listed in item 1, check the more specific one. If the case has multiple causes of,a.ctioli, ch,e'.cpl'i,e boxttiatpE3$l indicate,s,the primary c~u·se of action. To assist you in.compleiing the sheet, examples ofthe.cases ·mat belong'undereach case type in'item 1 are providf:lt;l below, A cover she.et must be-filect only with your initial paper. Faill)h'do, file ~ ¢oi(ef sheetwith the first ptipEfr·tiled in acivil cast) may subject a party; its counsel. or both to sanctions under rLiles '2,30 and.3.220 Qfthe .Galifprnja Rules of Couit.. · · To Parties in Rule 3.740 Collections Cases.A "collectib~s case'.' under rule 3,74(fls definechas anadion for recovery of money owed in a sum stated to be certain that is not more'Jha_n $25,QOO.,q~plllsii;:e c;>finfofe~t,ar'jd attor(ley's fe,¢{, afi~ing fro1T1 a triir,,sa¢tion iri'which properly, services, or monev was acquked on credit ..A coliections case' does noi:fndude an action see.king ifie fo'i!ow1ng: (1) tort damages:,(,?) punitive dam~ges, (3) recovery ofreaU:iroperty,'(4)recovery,ci(personaiproperty,,or(5):a preJudgn,entwrit of .. attachment. The identification of a case as a (Ule i?~Q'cpl!e:cf!{)rlS:t_aJe·qiJ lhiffo[ITJ r:nea,ti~ ttl~t ltwillio,e ex~rpp_t fron']ihe:gehe~al time-for-service requirements and case managernerit rules, ..uriless a defendantfifes a'responsive'pleadihg. A rule 3.740 collections case will oe suqject tq the requirements fo(s{iM~ej1(1d qbfai.oir,g a.'judgfn~iJfirj ri.tle:~;740, · · ·· · · · · · · To Parties in Complex Cases. In comp'rex cases Qnly; partl!3$ mus( aiso,ose the'.Ciyil Ca,$¢:Qovei'Sheencf,d,e§ignate v;:liethqr the' case'.is-,complex. Jf a plaintiff believes the case is;complex·underrule':3:400 oftfie.cii'!fforr:iia' Rules cifa:::oui,K:fiiis must he indicated. by compfeling lhf:l appropriate.• boxes in items 1. and 2. )fa plaihtlff ,tteslgi):ates A C:3S:e,~s '.cor:iiple~;,ttii{ ~veF~f'\eet: must bi;i served wifh'the complaint .on 131! parties to the action. A defendanbnay nfe,and;:serve no·faterthah ,ihe time;cif its fir~rappeararice, a j6lriq~r in the plainlifrs designation, a cotinter;desigr\ation th~t'fflE; c{ii;e i~,r'.iotcqi'ffple*;'Oh t(the plainiiff has.,made no designaikm, a designation that th case · ·comp 1· ex. · . . "CASE TYPES-AND ExAMF'LES· .· . e 1s c I f · · , · · · ··· ' · · ' · · 0 1 Au~~ (~2}-Personal Injury/Property· onB~:~t~. ?f;~ent~)3; ~tt~;11'}!¾Jt~m::i~itt1~Jtioif(Ca le 1 Qi:lmagetvYrongfu1Deail1 . .E- re~9~;?fR~ _ : ...... Antitius!ITradeBegulation'(03) Uninsured i-.fotorist {46) (ittlie IS'911\racl no_ 1,!(l a.wfi4,detamer CMstruction:·oefe'ct (°10} ... · case involves an uninsured · orwrontjfuleviction) Claims lfrvoivirio Mass Tort '( 40) motoiist..c!aim subjectto ContractlWarfnntyElrepCh;Se(ler' Sec~fltiE!{l.'.,itiMiibri'(;:!8), n. . arbitration; check/his ite1T1 Plai~tiff'(hot1iatido't'iiegliglihce) E,nvirorJmenicJI/To~ic Tot't:,(30). instead of Auto) N¼gllgf[lfBr~?ritlof.Goo,tr~c:t/, . . . lhsuranc,e Co~erageClalms. Other p'11PO/WD (Personal frijwy/ W;irranty . . •( arising from,provisional/y complex ·Property Damage/Wrongful Death) oitier Breach•of ContractiWarranty. case typel{s~tf,d /ibove) (4.1) T·ort· · · Collettioiis {e'.g .• }nOney owed; open · i;n· _to··r··.c.e·m·'.'·.··8··n,.··.·t·.· 0· f';Ju·· ..... ·gmen.t· . . b_.oo.k;iic.tou.hts)·.(b9.·l.. ··· · · ··· · u Asbestos (04) · , , · · , , ,.. Eofqr,;;eme11t°.fJµtjgment (20) .A.··.s· ·b_est·_.0?, Property D' ~rna.geu Colledion:Case..:se11er·Plaint1ff, ... · · · ·· · · · · • · ·· ,. Ab· s 1·rac I -.o f •J ud gmen.. I {O'.u t o f Asbestos Personal Injury/. o'ther.Pfomlssory NoieiColiedions CoOht¥), . · Wrongfut Death .Gase: c(;,i:fnfession·qf:Judgmerit (non- ProducrUability. (not asbestos or ln5ufar1ce'Goverage'(1J0tp,:ovisioiia/ly: domesiic ic!;ftions) . toxicle1ivir.opmental) {24) ... c6mp/ex}(1§} . .· . ,. , '.Slste~ StatiJ°tidgrnen( . Medical McJlpracJice (45) Aulo:subrogaiion: .Adm\nistrative Agency Award Medicai Malpractice-- Other. Cover1ge . (ndt'uiipaid tt.Jxei) P• · 'ia· ·1s & s · Oth·er'Coritracf'(37), Pe·1;.1·,·o··n··1c··erti.ff.1cat'·1'0· n··. ·01·En"ry· ·ot· I ,ys,c I urgeons Co'iitrathil.Fraud· ' Other Professional Health Care ~ . ·:Jupgment..on:unNid Taxes · Maipractice, · PthefCqnirac;t,Dispµt~ Qther.Enforcemeni·or Judgment Oiher PI/PD/WD(23) Real 1-'•ro.petfy Case , Premises Liability (e,g., slip Eminent bomainJlhverse- Miscil!laneous Civil C6mplai_rit and fall) Coiidemhatiori.{,14)_ · RICo·:{Z?) ·· · · · · lntent[onal Bodily tnjuryiPD/WD WrorigfuLE-;ifotioi;i (33Y Ot~E!r)::9mplaif)t (iiot speci'fied (e.g ... assault, vandalism) Othe'r Real Piwer:ty (c.g:,.qui~HiUe) {26} abo.ve) (4:2) lntentkmal Infliction of V)'rli:p(Posse$sjon.QfRQaEProperty Declaratory Relief Only Emotional Distress Mortgage Foredosure: · · lnju11clive Relief Only (W?ii- Negligent IIitliction of Quiet'Tiile· ·· ·· harassment)· · · Emotional Distress 9ther RearProp~rty'(ric,(elll(nent Mechanics•Lien Other Pl/PD/WO domain;-lani:Jlocd!tenant; or Other Commercial Complaint Non-011pon"o·r ,n (O.ther) Tort . .foreclosure) . , r C,ase . 1non·1,01' . •· "'' vnon,comp . J OX; . ,, Business Tor'JUrifoir Business Unlawful Detainer" Othe(Clvil Complaint Practice (07) Comrriercial.(31} (no~ 0 io.rt/non:compfex) Civil Rights (e.g., discrimination, Residential (32} Misce·uaneous Civil Petition false arrest) (not civii Drugs (3l3)Jif}he case inyofvesi/Jegai . Partnership and Corporate harassment) (08) drugs, check thisifein; otlietviisc,,··. Governance (21) Defamation (e.g., slander, libel) report as· Commercial or Residential) .'Other Petiticin'(nol sp.ecified {j 3) Judiclal'Revfow above.) ( CP.!,lllG!Rcv.Juty 1,20'J?) CJVIL CASE COVER SHEET For your protection and privacy, please press the Clear This Form button after you have printed the form. I Print this' f6rri1' 11 Save this form I Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 196 of 197 POS-015 A 'EY O~ P"-RTY wrn-t0VT ATTO!lNEY• STATE8AAN0 139816 FOR COUR r USE ONL r NAME. Terry J. Momca FIRM NA'4E- MOLLICA LAW STREET ADD~55. 560 First Street Suite 8201 cm- Benicia STATE CA ZJP COO€. 94,S 10 TELEPHONE HO. 925 239 2380 FIUN0 925 239 2382 E""AIL ADORESS [email protected] AITOR!'EY FOR (- ) Plaintiff 644 BROADWAY, LLC SUPERIOR COURT OF CALIFORNIA, COUNTY OF SAN FRANCISCO s= ADOREss·,4 00 McAllister Street ~ADDRE55 C1TY ANOZ1Pcooe San Francisco. CA 94102 BAA.'04 NAME. Civil Center Courthouse Pla.intiff/Pelitioner:644 BROADWAY, LLC, a California corporation DefendanVRespondent: FALLS LAKE FIRE AND CASUALTY COMPANY, ET Al. CAS E NVAA8Eft NOTICE AND ACKNOWLEDGMENT OF RECEIPT- CIVIL CGC-20-587071 TO (insert name of party being served): FAUS LAKE NATIONAL INSURANCE COMPANY, o Ohio corpordtion NOTICE The summons and other documents identified below are being served pursuant to section 415.30 of the California Code of Civil Procedure. Your failure to complete this form and return it within 20 days from the date of mailing shown below may subject you {or the party on whose behalf you are being served) to liability for the payment of any expenses Incurred in serving a summons on you in any other manner permitted by law. If you are being served on behalf of a corporation, an unincorporated association (including a partnership), or other entity, this form must be signed by you in the name of suciJ entity or by a person authorized to receive service or process on behalf or such entity. In all other cases, this form must be signed by you personally or by a person authorized by you to acknowledge receipt of summons. If you return this form to the sender, service of a summons is deemed complete on the day yoo sign the acknowledgment of receipt below. Date of maifing: ....;.1.aa0/2=9/2=0~20=------ Teny Mollica 0ER--1,!USTNOT 8E A PARTY IN THIS CA.Sc) ACKNOWLEDGMENT OF RECEIPT This acknowledges rece pt or (to be completed by sender before malling): 1. IT] A copy of the summons and of the complaint. 2. IT] Other (specify): Notice to Plaintiff: ADR Notice: Civi l Cover Sheet (To be completed by recipient): l /4 Date this rorm is signed: (j D;;;.. ;?D 20 ½r.Jhu u)j \\oee_ NOTICE AND ACKNOWLEDGMENT OF RECEIPT CML ~ dCMI~ K '1530. 411.10 Form -..a lar ~ vw .,.,,,_,cOLfdoA~ (11Ai 1. """ POS-O•S J,uw•Y , . 20051 ·vacy please pres5 the Clear --... for your protectionft: ~dy: ~ h•v~ printed the form. [ Save this form l IClear this form f This f orm t,utton • Case 4:20-cv-08421-JST Document 1-1 Filed 11/30/20 Page 197 of 197 S"REE"" .i.x;,.ess 550 First Street. Sui:e 8201 Ben'c:a St.t,TE CA ZIP COO£ 9451(1 ~25 239 2380 F-.,.NO 925 239 238" ljm@caattnys com f-" air!Jff 64A BROADWAY, LLC SU?E S'!itEI;, AOORESS 400 McAll.ster Street "MJU' C...Sf:NVMSER• CGC-20-587071 TO (insert name of party b&lng s6rved): FALLS LAKE FIRE A.ND CASUAL TY COMPANY, a Califom a corporation NOC The summons and other dOC1Jmenls identified below are bnlng served pursuant to section 415.30 of the California Code of Civil Prcce Dale of mailing: ...:1-=0/2=-=9;;.;'20=2:..aO______ Terry Mollica (TYPE OR P'llNT NAME:) ► , CKN W - G ~f~ff OF Th,s acknowledges receipt of (to be complstsd by sander t>.fore m3i,'Jng): 1. [TI A copy of the summons and of the complaint, 2. IT] Other (specify): Not'ce to Plaintiff: ADR Notice; Civil Cover Sheet 'TYPE OR AHO NAMt o, ENTITY N-IY roRM i;, ISIGNEO) CO(locjClwil-. rr,m-.-.-dlo:~UM NOTICE AN:J . 1lL ~41530. 4171Q ./\AIC:,al C,oonc,I ol Cel-lal'rul -.courllnloca.90" POS,415 lflev ~ t 200'5) o· • l'r ~"":,,, p t:i.rO ' w t Cl• ': Thl• Form button after you have printed the fo"". \