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Bonds t Bond Executed in ; Duplicate Bond No. TC8551 Premium: $1,326.00 BOND TO RELEASE MONEY WITHHELD ON STOP NOTICE KNOW ALL BY THESE PRESENTS, That we, I.E. Pacific, Inc., as Principal, and United States Fidelity and Guaranty Company, a corporation organized and existing under the law of the State of Maryland, and authorized to transact business in the State of California, as Surety, hereinafter called Surety, are held and firmly bound unto the City of Encinitas, 505 South Vulcan Avenue, Encinitas, California 92024, as Obligee, in the penal sum of One Hundred Seventy-Six Thousand, Seven Hundred Sixty-One and 76/100 ($176,761.76), lawful money of the United States of America, for the payment of which sum, well and truly to be made, the said Principal and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally firmly by these presents. THE CONDITION OF THE ABOVE OBLIGATION IS SUCH, That WHEREAS, the said Principal was awarded and entered into a written contract, dated on or about March 19, 2003, with the Obligee, for Cottonwood Creek Park (CMP99C), Encinitas, California, and WHEREAS, a certain stop-notice has been filed against payments which are due the said Principal in connection with said contract, in the amount of One Hundred Forty-One Thousand, Four Hundred Nine and 41/100 ($141,409.41) by Merritt Construction, 228 Navajo Street, San Marcos, California 92069 dated June 21, 2004. AND WHEREAS, the said Principal disputes the correctness or validity or enforceability of the stop-notice so filed, and desires that the funds now due him under the provisions of said contract shall be delivered to him notwithstanding said stop-notice. NOW, THEREFORE, if the above named Principal shall pay any sum which the stop-notice claimant may recover on the claim together with his costs of suit in the action, if he recovers therein, not exceeding the penal sum of this bond, then this obligation shall be void, otherwise it shall be and remain in full force and effect. THIS BOND IS GIVEN AND ACCEPTED under and in accordance with the provisions of Section 3196 of the Civil Code of the State of California. SIGNED, SEALED AND DATED THIS 20th day of October, 2004. I.E. PACIFIC INC. i f By: Di oester- 'on, re iden UNITED STATES FIDELITY AND GUARANTY COMPANY By: Den D. Flatness, Attorney-in-fact State of Missouri City of St. Louis On October 20, 2004 before me, a Notary Public in and for said County and State, residing therein, duly commissioned and sworn, personally appeared Dennis D. Flatness known to me to be Attorney-in-Fact of United States Fidelity and Guaranty Company, the corporation described in and that executed the within and foregoing instrument, and known to me to be the person who executed the said instrument in behalf of the said corporation, and he duly acknowledged to me that such corporation executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year stated in this certificate above. BARBARA J LEMM NOTARY PUBLIC STATE OF MISSOURI Notary Public ST. LOUIS CITY MY COMMISSION EXP. FEB. 23, 2007 My Commission Expires i CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT - - State of California ss. County of S(An J)J LAD `tea On before me, ~hr*14 ry, -~,R- hresY.n. A)cF'wl-w A W;C~ , Date Name and Title of Officer (e.g., "J a Doe, Notary blic") t•S I personally appeared ~ )tan-e- t'l D.P +tr " ~aaYl Name(s) of Signer(s) " V personally known to me r ❑ proved to me on the basis of satisfactory evidence CHRISTINA G. JOHNSON to be the person(s~ whose name(s) is/are _ Commission 1330629 z subscribed to the within instrument and ~z Notary Public - California 3 Z San Diego County Z acknowledged to me that he/she/they executed Q*Comm. Expires Nov 17,2W5 the same in his/herAheir authorized capacity(ie4, and that by hWher/their signature(s) on the instrument the person(s), or the entity upon behalf of which the personM acted, executed the instrument.; WIT SS my hand an official seal. J ~ ~3 Si re of Nota ublic 'k OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document? ni fi Title or Type of Document: 1 61 Document Date: Number of Pages: n Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: • ❑ Individual Top of thumb here ❑ Corporate Officer- Title(s): S El Partner - El Limited ❑ General ❑ Attorney-in-Fact ❑ Trustee h ❑ Guardian or Conservator ❑ Other:! Signer Is Representing:i i ® 1999 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 • www.nationalnotary.org Prod. No. 5907 Reorder: Call Toll-Free 1-800-876-6827 ~ 4mePu' POWER OF ATTORNEY Seaboard Surety Company United States Fidelity and Guaranty Company St. Paul Fire and Marine Insurance Company Fidelity and Guaranty Insurance Company St. Paul Guardian Insurance Company Fidelity and Guaranty Insurance Underwriters, Inc. St. Paul Mercury Insurance Company Power of Attorney No. Certificate No. 23685 2088193 KNOW ALL MEN BY THESE PRESENTS: That Seaboard Surety Company is a corporation duly organized under the laws of the State of New York, and that St. Paul Fire and Marine Insurance Company, St. Paul Guardian Insurance Company and St. Paul Mercury Insurance Company are corporations duly organized under the laws of the State of Minnesota, and that United States Fidelity and Guaranty Company is a corporation duly organized under the laws of the State of Maryland, and that Fidelity and Guaranty Insurance Company is a corporation duly organized under the laws of the State of Iowa, and that Fidelity and Guaranty Insurance Underwriters, Inc. is a corporation duly organized under the laws of the State of Wisconsin (herein collectively called the "Companies"), and that the Companies do hereby make, constitute and appoint Dennis D. Flatness, Taffra S. Holman, Barbara M. Johnson, Susan M. Stefanski, Dennis W. Lutz, and Barbara J. Lemur of the City of St. Louis , State Missouri , their true and lawful Attorney(s)-in-Fact, each in their separate capacity if more than one is named above, to sign its name as surety to, and to execute, seal and acknowledge any and all bonds, undertakings, contracts and other written instruments in the nature thereof on behalf of the Companies in their business of guaranteeing the fidelity of persons, guaranteeing the performance of contracts and executing or guaranteeing bonds and undertaking, required or permitted in any actions or proceedings allowed by law. IN WITNESS WHEREOF, the Companies have caused this instrument to be signed and sealed this 8 day of May 2003 Seaboard Surety Company United States Fidelity and Guaranty Company St. Paul Fire and Marine Insurance Company Fidelity and Guaranty Insurance Company St. Paul Guardian Insurance Company Fidelity and Guaranty Insurance Underwriters, Inc. St. Paul Mercury Insurance Company S<mETI' J erne b ti o\NN 'NSGN Jpy ~N9Yq'^•* FS~rYMD C7~ ~M4~enw* ' ~T ~t-~RFO,R+1~.y =f'fA0.rORATC T iywm.,_ -•^^nnNtED 1927 i tees ~ 1977 Q 1951 PETER W. CARMAN, Vice President N bF ~,,SEAL/oF ~ ~p 9~`OCnEW~ ~'~~cnNCe oo ad tS :i.N~ar~ s}s.........naa* `V'M'! HI°' > ~ / State of Maryland City of Baltimore THOMAS E. HUIBREGTSE, Assistant Secretary On this 8th day of May 2003 , before me, the undersigned officer, personally appeared Peter W. Carman and Thomas E. Huibregtse, who acknowledged themselves to be the Vice President and Assistant Secretary, respectively, of Seaboard Surety Company, St. Paul Fire and Marine Insurance Company, St. Paul Guardian Insurance Company, St. Paul Mercury Insurance Company, United States Fidelity and Guaranty Company, Fidelity and Guaranty Insurance Company, and Fidelity and Guaranty Insurance Underwriters, Inc.; and that the seals affixed to the foregoing instrument are the corporate seals of said Companies; and that they, as such, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the names of the corporations by themselves as duly authorized officers. CPEAS(Eyb Ivor Ad~ - r/^4.1 A& In Witness Whereof, I hereunto set my hand and official seal. .4 BVC My Commission expires the I st day of July, 2006. (dip ~o CM REBECCA EASLEY-ONOKALA, Notary Public HE 86203 Rev. 7-2002 Printed in U.S.A. This Power of Attorney is granted under and by the authority of the following resolutions adopted by the Boards of Directors of Seaboard Surety Company, St. Paul Fire and Marine Insurance Company, St. Paul Guardian Insurance Company, St. Paul Mercury Insurance Company, United States Fidelity and Guaranty Company, Fidelity and Guaranty Insurance Company, and Fidelity and Guaranty Insurance Underwriters, Inc. on September 2, 1998, which resolutions are now in full force and effect, reading as follows: RESOLVED, that in connection with the fidelity and surety insurance business of the Company, all bonds, undertakings, contracts and other instruments relating to said business may be signed, executed, and acknowledged by persons or entities appointed as Attorney(s)-in-Fact pursuant to a Power of Attorney issued in accordance with these resolutions. Said Power(s) of Attorney for and on behalf of the Company may and shall be executed in the name and on behalf of the Company, either by the Chairman, or the President, or any Vice President, or an Assistant Vice President, jointly with the Secretary or an Assistant Secretary, under their respective designations. The signature of such officers may be engraved, printed or lithographed. The signature of each of the foregoing officers and the seal of the Company may be affixed by facsimile to any Power of Attorney or to any certificate relating thereto appointing Attorney(s)-in-Fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, and subject to any limitations set forth therein, any such Power of Attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company, and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking to which it is validly attached; and RESOLVED FURTHER, that Attorney(s)-in-Fact shall have the power and authority, and, in any case, subject to the terms and limitations of the Power of Attorney issued them, to execute and deliver on behalf of the Company and to attach the seal of the Company to any and all bonds and undertakings, and other writings obligatory in the nature thereof, and any such instrument executed by such Attorney(s)-in-Fact shall be as binding upon the Company as if signed by an Executive Officer and sealed and attested to by the Secretary of the Company. 1, Thomas E. Huibregtse, Assistant Secretary of Seaboard Surety Company, St. Paul Fire and Marine Insurance Company, St. Paul Guardian Insurance Company, St. Paul Mercury Insurance Company, United States Fidelity and Guaranty Company, Fidelity and Guaranty Insurance Company, and Fidelity and Guaranty Insurance Underwriters, Inc. do hereby certify that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Companies, which is in full force and effect and has not been revoked. IN TESTIMONY WHEREOF, I hereunto set my hand this 20th day of October 2004 , I ♦ f 19Z7 m ~(,tGRFOR~>Fm WrtOPYORRlfmi,t ~~`.+wtU -..^^ruW1ED s ` 1886 'r9TJ ~ ~ ~'d1`~7/~ C OFNFa ''2~ nN e a.........v J d}r........•~''+ `mil ~p *Mrl Riini ~ Thomas E. Hutbregtse, Assistant Secretary To verify the authenticity of this Power of Attorney, call 1-800-421-3880 aml ask for the Power of Attorney clerk. Please refer to the Power of Attorney number, the above-named individuals and the details of the bond to which the power is attached. E►r-paUj 3UrB. y 11 Pal Fire and KarineInsarance Company United States Fidclin az~d Guarzan Company c3 ~e SL Pau] Guardian Ir~suraace Company Fidelity St. P au] Mercur and Guaranty Lnsw aace Company Mercury Insurance Co mpany FidclitS and Gua SeaooardSurety Company rann'LMsuranocUndrnrritert,?ae St Paul n4adic21 Liability Insurance Company Bond No. TC8551 RIDER CONT.'TNG DDS CLO STi-RE NOTICE OF TERRORISIYI COQ RASE This disclosure notice is required by the Terrorism Risk Insurance Act of 2002 (the "Act"). No action is required on your part.. This Disclosure Notice is incorporated in and a part of the attached bond, and is effective the date of the bond. You should know that, effective November 26, 2002, any losses covered by the attached bond that are caused by certified acts of terrorism would be partially reimbursed by the United States under a formula established by the Act. Under this formula, the United States reimburses 90% of covered terrorism losses exceeding the state only established deductible paid by the insurance company providing the coverage. Under the. Act, there is a cap on our liability to pay for covered. terrorism losses if the aggregate amount of insured losses under the Act exceeds $100,000,000,000 during the applicable period for all insureds and all insurers combined. In that case, we will not be liable for the payment of any amount which exceeds that aggregate amount of $ii 00,000,000,D00. The portion of your premium that is attributable to coverage for acts of terrorism is D.DO. IMPORTANT NOTE: THE COST OF TERRORISM COVERAGE IS SUBJECT TO CHANGE ON AID Y BONDS THAT PREMIUM IS CHARGED ANNUALLY. -Bond Executed in Duplicate Bond No. TC8551 Premium: $1,326.00 BOND TO RELEASE MONEY WITHHELD ON STOP NOTICE KNOW ALL BY THESE PRESENTS, That we, I.E. Pacific, Inc., as Principal, and United States Fidelity and Guaranty Company, a corporation organized and existing under the law of the State of Maryland, and authorized to transact business in the State of California, as Surety, hereinafter called Surety, are held and firmly bound unto the City of Encinitas, 505 South Vulcan Avenue, Encinitas, California 92024, as Obligee, in the penal sum of One Hundred Seventy-Six Thousand, Seven Hundred Sixty-One and 76/100 ($176,761.76), lawful money of the United States of America, for the payment of which sum, well and truly to be made, the said Principal and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally firmly by these presents. THE CONDITION OF THE ABOVE OBLIGATION IS SUCH, That WHEREAS, the said Principal was awarded and entered into a written contract, dated on or about March 19, 2003, with the Obligee, for Cottonwood Creek Park (CMP99C), Encinitas, California, and WHEREAS, a certain stop-notice has been filed against payments which are due the said Principal in connection with said contract, in the amount of One Hundred Forty-One Thousand, Four Hundred Nine and 41/100 ($141,409.41) by Merritt Construction, 228 Navajo Street, San Marcos, California 92069 dated June 21, 2004. AND WHEREAS, the said Principal disputes the correctness or validity or enforceability of the stop-notice so filed, and desires that the funds now due him under the provisions of said contract shall be delivered to him notwithstanding said stop-notice. NOW, THEREFORE, if the above named Principal shall pay any sum which the stop-notice claimant may recover on the claim together with his costs of suit in the action, if he recovers therein, not exceeding the penal sum of this bond, then this obligation shall be void, otherwise it shall be and remain in full force and effect. THIS BOND IS GIVEN AND ACCEPTED under and in accordance with the provisions of Section 3196 of the Civil Code of the State of California. SIGNED, SEALED AND DATED THIS 20th day of October, 2004. I.E. PACIFIC INC. _ By. Di oester-D n, e-s,i ent UNITED STATES FIDELITY AND GUARANTY COMPANY By: Dennis D. Flatness, Attorney-in-fact ' C • 1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ss. County of Date 04 before me IS~-ir1~.6 ~!~]Y1S~II I4 On Al S' < r ° Name and Title of Officer (e.g., "Jane Doe, Notary Publi ) personally appeared At ~iot<b+z `Z.)L~l Name(s of Signer(s) f> IN impersonally known to me } ❑ proved to me on the basis of satisfactory f' r evidence CHRISTINA G. JOHNSON to be the person(6) whose name(e) is/arm I Commission # 1330629 Z subscribed to the within instrument and i Notary Public - California y acknowledged to me that ba/sheiftbay-executed San Diego County the same in kris/her/tha4 authorized I res Nov 17, 2005 i My Comm. Fri capacity(iec), and that by 4is/her/"r i I signatures} on the instrument the person(e), or R MN the entity upon behalf of which the person(s} acted, executed the instrument. W S my hand and fficial seal., SignaturG o Notary 71011C L. OPTIONAL { Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document ~x i Title or Type of Document: Document Date: Number of Pages:> Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer s Signer's Name: Top of thumb here ~ ❑ Individual ' ❑ Corporate Officer - Title(s): ❑ Partner - ❑ Limited ❑ General? ❑ Attorney-in-Fact 16, ❑ Trustee ❑ Guardian or Conservator ❑ Other: i Signer Is Representing: EE,, ~4 =4t 4 ~~{Jt 4 z` /vfiy (!C t-l (,C(.4C CC:<>~ Z 0 1999 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 • www.nationainotary.org Prod. No. 5907 Reorder: Call Toll-Free 1-800-876-6827 State of Missouri City of St. Louis On October 20, 2004 before me, a Notary Public in and for said County and State, residing therein, duly commissioned and sworn, personally appeared Dennis D. Flatness known to me to be Attorney-in-Fact of United States Fidelity and Guaranty Company, the corporation described in and that executed the within and foregoing instrument, and known to me to be the person who executed the said instrument in behalf of the said corporation, and he duly acknowledged to me that such corporation executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year stated in this certificate above. ~f1nOi~IR/'P ~ rrn~l►~~ BARBARA J LEMM Notary Public NOTARY PUBLIC STATE OF MISSOURI ST. LOUIS CITY MY COMMISSION EXP. FEB. 23, 2007 My Commission Expires 1hejPduI POWER OF ATTORNEY Seaboard Surety Company United States Fidelity and Guaranty Company St. Paul Fire and Marine Insurance Company Fidelity and Guaranty Insurance Company St. Paul Guardian Insurance Company Fidelity and Guaranty Insurance Underwriters, Inc. St. Paul Mercury Insurance Company 23685 Power of Attorney No. Certificate No. 20-188194 KNOW ALL MEN BY THESE PRESENTS: That Seaboard Surety Company is a corporation duly organized under the laws of the State of New York, and that St. Paul Fire and Marine Insurance Company, St. Paul Guardian Insurance Company and St. Paul Mercury Insurance Company are corporations duly organized under the laws of the State of Minnesota, and that United States Fidelity and Guaranty Company is a corporation duly organized under the laws of the State of Maryland, and that Fidelity and Guaranty Insurance Company is a corporation duly organized under the laws of the State of Iowa, and that Fidelity and Guaranty Insurance Underwriters, Inc. is a corporation duly organized under the laws of the State of Wisconsin (herein collectively called the "Companies"), and that the Companies do hereby make, constitute and appoint Dennis D. Flatness, Taffra S. Holman, Barbara M. Johnson, Susan M. Stefanski, Dennis W. Lutz, and Barbara J. Lemm St. Louis Missouri of the City of ,State ,their true and lawful Attorney(s)-in-Fact, each in their separate capacity if more than one is named above, to sign its name as surety to, and to execute, seal and acknowledge any and all bonds, undertakings, contracts and other written instruments in the nature thereof on behalf of the Companies in their business of guaranteeing the fidelity of persons, guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law. th May 2003 IN WITNESS WHEREOF, the Companies have caused this instrument to he signed and sealed this _ g day of Seaboard Surety Company United States Fidelity and Guaranty Company St. Paul Fire and Marine Insurance Company Fidelity and Guaranty Insurance Company St. Paul Guardian Insurance Compan} Fidelity and Guaranty Insurance Underwriters, Inc. St. Paul Mercury Insurance Company SUAfT PaE a EpM iyg UE PETER W. CARMAN, Vice President ~ 1951 OFNP!✓ `wimN~E AMN~ Attu d State of Maryland City of Baltimore THOMAS E. HUIBREGTSE, Assistant Secretary On this 8th day of May 2003 before me, the undersigned officer, personally appeared Peter W. Carman and Thomas E. Huibregtse, who acknowledged themselves to be the Vice President and Assistant Secretary, respectively, of Seaboard Surety Company, St. Paul Fire and Marine Insurance Company, St. Paul Guardian Insurance Company, St. Paul Mercury Insurance Company, United States Fidelity and Guaranty Company, Fidelity and Guaranty Insurance Company, and Fidelity and Guaranty Insurance Underwriters, Inc.; and that the seals affixed to the foregoing instrument are the corporate seals of said Companies; and that they, as such, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the names of the corporations by themselves as duly authorized officers. t,(~ r Q` a In Witness Whereof, I hereunto set my hand and official seal. NOTAR Y y PU@~t My Commission expires the 1st day of July, 2006. '4ip9ECil ~o REBECCA EASLEY-ONOKALA, Notary Public 86203 Rev. 7-2002 Printed in U.S.A. This Power of Attorney is granted under and by the authority of the following resolutions adopted by the Boards of Directors of Seaboard Surety Company, St. Paul Fire and Marine Insurance Company, St. Paul Guardian Insurance Company, St. Paul Mercury Insurance Company, United States Fidelity and Guaranty Company, Fidelity and Guaranty Insurance Company, and Fidelity and Guaranty Insurance Underwriters, Inc. on September 2, 1998, which resolutions are now in full force and effect, reading as follows: RESOLVED, that in connection with the fidelity and surety insurance business of the Company, all bonds, undertakings, contracts and other instruments relating to said business may be signed, executed, and acknowledged by persons or entities appointed as Attorney(s)-in-Fact pursuant to a Power of Attorney issued in accordance with these resolutions. Said Power(s) of Attorney for and on behalf of the Company may and shall be executed in the name and on behalf of the Company, either by the Chairman, or the President, or any Vice President, or an Assistant Vice President, jointly with the Secretary or an Assistant Secretary, under their respective designations. The signature of such officers may be engraved, printed or lithographed. The signature of each of the foregoing officers and the seal of the Company may be affixed by facsimile to any Power of Attorney or to any certificate relating thereto appointing Attorney(s)-in-Fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, and subject to any limitations set forth therein, any such Power of Attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company, and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking to which it is validly attached; and RESOLVED FURTHER, that Attorney(s)-in-Fact shall have the power and authority, and, in any case; subject to the terms and limitations of the Power of Attorney issued them, to execute and deliver on behalf of the Company and to attach the seal of the Company to any and all bonds and undertakings, and other writings obligatory in the nature thereof, and any such instrument executed by such Attorney(s)-in-Fact shall be as binding upon the Company as if signed by an Executive Officer and sealed and attested to by the Secretary of the Company. I, Thomas E. Huibregtse, Assistant Secretary of Seaboard Surety Company, St. Paul Fire and Marine Insurance Company, St. Paul Guardian Insurance Company, St. Paul Mercury Insurance Company, United States Fidelity and Guaranty Company, Fidelity and Guaranty Insurance Company, and Fidelity and Guaranty Insurance Underwriters, Inc. do hereby certify that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Companies, which is in full force and effect and has not been revoked. IN TESTIMONY WHEREOF, I hereunto set my hand this 20th day of October 2004 s~wrry C y,\RE 6 M 'o~RM..!!!Sp9 }{f/Qq//`Jpt ~nSUggh°t ~ L,tty ! , " 1927 A '~O0.PORA>e~t ib: c00.Y0 C m z: _ m N'~ * ~;SEAL.'o3 :SBAL.aD t N 1896 C9~ {Q r yD 1h1 AN~O A~ Thomas E. Huibregtse, Assistant Secretary To verify the authenticity of this Power of Attorney, call 1-800-421-3880 and ask for the Power of Attorney clerk. Please refer to the Power of Attorney number, the above-named individuals and the details of the bond to which the power is attached. t 5t P ani Fire aad A arine Insurance ComP~3' Unified States PaUl St Paul GaardianLU-iLrancc Camnanp F St Pau] Mcrcu-'Ins ioeliry -d Guarann• Insurance Compaap urance Fidciirs IT insurance Linder~rriiers, T_ 5ea'doard Surest Gompanp Coronary St Paul and ed Gicaiuaran Liabilirp Insuranc ae e Compaap Bond No. TC8551 R1IDER C01\7T.kL\T1NG D'IS CLC,~-~-R-E NOTICE OF TERROPZIM Cod' R,4 C This disclosure notice is required by the Terrorism Risk Insurance Act of 2002 the "Act"). No action is required on your part.. This Disclosure Notice is incorporated in and a part of the attached bond, and is effective the date of the bond. You should I%now that, effective November 26, 2002, any losses covered by the attached bond ,that are caused by certified acts of terrorism would be partially reimbursed by the United States under a formula established by the Act. Under this formula, the United States reimburses 90% of covered terrorism losses exceeding the statutorily established deductible paid by the insurance company providing the coverage. Under the. Act, there is a cap on our liability to pay for covered. terrorism losses if the aggregate amount of insured losses under the Act exceeds $100,000,000,000 during the applicable period for all insureds and all insurers combined. In that case, we will not be liable for the payment of any amount which exceeds that aggregate amount of 00,000,D00,000. The portion of your premium that is attributable to coverage for acts of terrorism is Q.DO. IMPORTANT NOTE: THE COST OF TERRORISM COVERAGE IS SUBJECT TO CHANGE ON ANDY BONDS THAT PREMIUM IS CHARGED ANNUALLY.