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HomeMy WebLinkAboutMARINA PARK PROPERTY MANAGEMENT AGREEMENT_02_LEASE_DOCUMENTS02 L.EASE DOCU V1ENTS M�2.i�aP�rza� PROPERTY MANAGEMENT AGREEMENT I. PARTIES This Agreement is made by and between THE CITY OF NEWPORT BEACH, a municipal corporation (hereinafter called "City") and BENDETTI MANAGEMENT GROUP (hereinafter called "Agent"). 11. EXCLUSIVE AGENCY: In consideration of the property management services to be rendered by Agent pursuant to this Agreement, City hereby designates Agent as the exclusive agent and representative of City for the purposes of managing and operating the mobile home park owned by City commonly known as Marina Mobile Home Park (hereinafter called the "Park"). III. TERM: The term of this Agreement is for the period beginning upon final approval by both parties and ending March 31, 2000. Either parry may terminate this Agreement without cause upon thirty (30) days written notice. IV. AGENT'S DUTIES: Agent does hereby agree to use its best efforts to fully, effectively and' efficiently manage, operate, and maintain the Park in a professional and lawful manner. City and Agent further agree that Agent's authorities, duties, and responsibilities with respect to the park shall be as follows: Trust Account: Upon the execution of this Agreement, Agent shall establish and maintain with an institution of Agent's choice, a Trust Account for the deposit of all monies collected from the Park. The Agent shall have the right and authority to draw on the Trust Account for any and all payments, which Agent makes in discharging Agent's obligations pursuant to the terms of this agreement, including the payment of Agent's fee as provided within the terms of this Agreement. 2. Rent Collection: Agent shall take all reasonable and necessary action to collect rentals, charges, or other income when due from tenants of the Park in accordance with the terms of their tenancies and may execute all receipts or any other documents reflecting receipt of said sums. 3. Operations and Management: Manage, operate and maintain the Park, including, but not by way of limitation: a) the employment, supervision and discharge, as employees or independent contractors of Agent, of the on -site managers and of all other personnel, professional or otherwise, in the reasonable opinion of Agent necessary to the property management, operation and maintenance of the Park, the actions and omissions of whom shall not in any way be the responsibility of City. b) the customary and ordinary maintenance and repair of the Park and its improvements, fixtures, appurtenances and grounds, c) the procurement and supervision of any and all services and utilities in the reasonable opinion of Agent necessary to the proper management, operation and maintenance of the Park, including, but not by way of limitation, water, electricity, gas, fuel, telephone, vermin extermination, rubbish hauling, window cleaning, janitorial and gardening/landscaping, d) advising City regarding any and all insurance which in the reasonable opinion of Agent is necessary to adequately protect City, Agent, their employees and agents and the Park or as required by law, including, but not by way of limitation, where appropriate and applicable, workmen's compensation insurance, public liability insurance, fire, casualty and extended coverage insurance, burglary and theft insurance, and e) the prompt and timely compliance with any and all applicable federal, state and municipal laws and ordinances and the rules, regulations and orders of any and all federal, state and municipal agencies having jurisdiction over the Park and the operation and management thereof. f) the administration and maintenance of all lease documents and park regulations. g) the administration, management and financing of capital improvements to the park which may be approved by owner and which have a total cost of $10,000 or less. Ip� 0 4. Operating Expenses: From gross revenues collected from the Park, Agent shall: a) Pay all employee salaries at rates authorized by Owner. b) Pay all operating expenses incurred through renting, servicing, maintaining, or repairing the Park and such additional expenses in connection with the Park as may be authorized by Owner. c) Deduct Agent's fee described under "Agent's Fee" below and any other fees due to Agent under the terms of this Agreement. It is understood and agreed by the parties hereto that all costs related to the maintenance and operation of the Park are to be paid from City's funds. Under no circumstances whatsoever shall Agent be required to advance or otherwise expend Agent's own funds for the benefit of the Park. 5. Agent's Authority: City does hereby authorize and direct Agent to do everything reasonably necessary, in the name of and at the expense of City for the proper management of the Park, including, without limitation thereto, periodic inspections, handling tenant requests, supervision of maintenance, arranging for maintenance and repairs as may be necessary for the Park, purchasing all materials and supplies, recommending independent contractors to supply services, and requesting such sums from City as Agent deems necessary to accomplish the foregoing. Agent shall obtain City's approval for an expenditure in excess of $500.00 for any one item, except monthly or recurring operating charges and/or emergency repairs in excess of the maximum, if in the opinion of the Agent such repairs necessary to prevent additional damage and/or liability or a greater total expenditure or to maintain services or conditions to the tenants as called for in their tenancy. Agent shall notify City immediately whenever emergency repairs have been ordered. 6. Employee Coaches: Agent shall control the use and occupancy of the two coaches in the Park owned by the City and reserved for use by Park employees. 7. Records: a) Agent shall compile and maintain those records, books and accounts as required by applicable state and federal law pertaining to mobile home parks. 3 b) Agent shall maintain full and accurate books and records of the accounts of the Park, which shall be open to the inspection of Owner at the office of Agent after reasonable notice to Agent. M proceed—Owner�inashall retain the right at any time without notice to inspect and/or audit the books and records of agent relative to the Park. 8. Payments: balance remainina after all necessary charges have been made as provided in the Aareement. Said monthly statement shall be deemed icaame —and between the parties unless Owner notifies Agent in writing. In the event there is a deficit in the account of the Park, Agent shall notify Owner of this deficiency, and Owner agrees to forward said amount to Agent within seventy-two (72) hours after notice. 9. Indemnity: Agent shall defend, indemnify and hold harmless the City and its officers, employees, and representatives, with respect to any claim or loss arising out of or in any way related to agent's Wilful misconduct, fraud, negligence or failure to perform duties required by this agreement. V. OWNER'S DUTIES: Agent and City agree that City's authorities, duties and responsibilities with respect to the Park shall be as follows: Information to Agent: City agrees to promptly furnish Agent with all documents and records to properly manage the Park, including, but not limited to, copies of existing service contracts, copies of all insurance policies and any required endorsements thereto which are carried by City during the term of this Agreement. 2. Hold Harmless: Except for Agent's misconduct or negligence, City shall indemnify and save the Agent and its officers, directors, shareholders, employees, representatives, successors and assigns, harmless from any and all claims, costs and expenses, attorney's fees, litigation, liabilities, and damages arising from or connected with the Park of the performance or exercise of any of the duties, obligations, powers, or authorities herein 4 or hereafter granted to Agent. 3. Insurance: The City is a self insured public agency. City agrees to consider all reasonable recommendations of Agent with respect to insurance coverage to minimize the cost thereof and the possibility of bodily injury, property damage, and loss of rental income. 4. Waiver of Subrogation: City hereby waives all of its rights and those of its insurers with respect to recovery against Agent on account of loss or damage to City's real or personal property where such loss is caused by an insurable peril, including, but not limited to fire or any of the extended coverage hazards and which damage arises out of or in connection with the Park. City shall give notice to all insurance carriers, if any, that the foregoing waiver of subrogation is contained in this Agreement. 5. Reimbursement Advances: City agrees to immediately reimburse Agent, upon demand, to the full extent for all monies advanced by Agent for City's accounts in carrying out the purpose of this Agreement, provided; however, that nothing contained herein shall oblige Agent to make such advances. 6. Governmental Order to Repair, etc.: In the event that any governmental agency, authority, or department shall order the repair, alteration, or removal of any structure or matter on the Park, or if after written notice of the same to City by such body or Agent, the owner fails to authorize Agent or others to make such repairs, alterations, or removals, Agent shall be released from any responsibility in connection therewith, and Owner shall be answerable to such body for any and all penalties and fines whatsoever imposed because of such failure on City's part. 7. Agent's Fee: Owner shall pay Agent for its property management services a monthly fee equal to five percent (5%) of gross revenues. Agent is hereby authorized to deduct the amount of said fee for said services each month, plus any other fees due Agent hereunder, as the first charge upon all gross monthly rental income. 8. Additional Services Rendered: City hereby agrees that for any services rendered by Agent on City's behalf beyond the scope of this Agreement, Agent shall be paid at an hourly ratio of eighty dollars ($80.00) per hour. Such additional services shall include, but not be limited to, formal rent control procedures and representation of City before governmental entities. All such additional services shall be approved by the City in writing prior to the rendering of same. Services rendered for the management and financing of capital improvements costing in excess of $10,000 shall be subject to a separate contract. 5 9. Duty to Cooperate: City agrees to cooperate with Agent to facilitate Agent's performance on its duties hereunder. 10. Power to Request: City hereby represents that it is empowered and duly authorized to enter into this Agreement. The City Manager or his or her designee is authorized to grant any approvals or authorizations required of the City as part of this Agreement. VI. MISCELLANEOUS TERMS: Governing Law This Agreement shall be construed in accordance with and all disputes hereunder shall be governed by the laws of the State of California. 2. Successor: This Agreement shall be binding upon the parties hereto, their legal representatives, successors, and permitted assigns, provided, however, that this Agreement may not be assigned by the Agent or City without the prior written consent of the other party. 3. Relationship of Parties: Under no circumstances shall this Agreement be construed as creating either a partnership or an employer/employee relationship between the parties hereto. 4. Legal Cost: Where legal assistance is required for such matters as enforcing any terms of the lease, the collection of rents, or eviction proceedings, such action shall be through counsel designated by City and shall be at City's expense. Furthermore, in the event Agent or City shall institute legal proceedings against the other arising out of the terms of this Agreement or the performance hereunder, the prevailing party shall recover from the other, all attorney's fees, costs, and expenses incurred in any such action. 5. Agent shall provide City with a bond or similar agreement of a third party to indemnify the City for any loss due to theft, embezzlement, default by agent or its employees, officials or representatives. The bond shall be in the sum of $100,000 per occurrence. The form and content of the bond shall be approved by the City Attorney and the City Manager. 6. Notices: Any notice required under the terms herein shall be deemed given upon the placing of it in the United States Mail, postage prepaid, return receipt requested, and addressed to the address designated below. 2 T � • Said address may be changed by either party by mailing written notice to the other party at the last designated address of the other party as provided herein. 7. Waiver: No failure by City or Agent to insist upon the strict performance of any covenant, agreement, term or condition of this Agreement shall constitute a waiver of any such breach or subsequent breach. 8. Entire Agreement: This Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any and all prior agreements or understandings between the parties. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first written above. CITY: CITY OF NEWPORT BEACH Date: By: e i . Murp y, y Manager 3300 Newport Blvd. Newport Beach, CA 92663 AS TO FORM: 7 AGENT: BENDETTI MANAGEMENT GROUP Date: By: Ro IJ. Bendetti, Principal 1176 Main Street, Suite 100 Irvine, CA 92614 PROPERTY MANAGEMENT AGREEMENT I. PARTIES This Agreement is made by and between THE CITY OF NEWPORT BEACH, a municipal corporation (hereinafter called "City") and BENDETTI MANAGEMENT GROUP (hereinafter called "Agent"). II. EXCLUSIVE AGENCY: In consideration of the property management services to be rendered by Agent pursuant to this Agreement, City hereby designates Agent as the exclusive agent and representative of City for the purposes of managing and operating the mobile home park owned by City commonly known as Marina Mobile Home Park (hereinafter called the "Park"). III. TERM: The term of this Agreement is for the period beginning upon final approval by both parties and ending March 31, 2000. Either party may terminate this Agreement without cause upon thirty (30) days written notice. IV. AGENT'S DUTIES: Agent does hereby agree to use its best efforts to fully, effectively and efficiently manage, operate, and maintain the Park in a professional and lawful manner. City and Agent further agree that Agent's authorities, duties, and responsibilities with respect to the park shall be as follows: Trust Account: Upon the execution of this Agreement, Agent shall establish and maintain with an institution of Agent's choice, a Trust Account for the deposit of all monies collected from the Park. The Agent shall have the right and authority to draw on the Trust Account for any and all payments, which Agent makes in discharging Agent's obligations pursuant to the terms of this agreement, including the payment of Agent's fee as provided within the terms of this Agreement. 2. Rent Collection: Agent shall take all reasonable and necessary action to collect rentals, charges, or other income when due from tenants of the Park in accordance with the terms of their tenancies and may execute all receipts or any other documents reflecting receipt of said sums. 3. Operations and Management: Manage, operate and maintain the Park, including, but not by way of limitation: a) the employment, supervision and discharge, as employees or independent contractors of Agent, of the on -site managers and of all other personnel, professional or otherwise, in the reasonable opinion of Agent necessary to the property management, operation and maintenance of the Park, the actions and omissions of whom shall not in any way be the responsibility of City. b) the customary and ordinary maintenance and repair of the Park and its improvements, fixtures, appurtenances and grounds, c) the procurement and supervision of any and all services and utilities in the reasonable opinion of Agent necessary to the proper management, operation and maintenance of the Park, including, but not by way of limitation, water, electricity, gas, fuel, telephone, vermin extermination, rubbish hauling, window cleaning, janitorial and gardening/landscaping, d) advising City regarding any and all insurance which in the reasonable opinion of Agent is necessary to adequately protect City, Agent, their employees and agents and the Park or as required by law, including, but not by way of limitation, where appropriate and applicable, workmen's compensation insurance, public liability insurance, fire, casualty and extended coverage insurance, burglary and theft insurance, and e) the prompt and timely compliance with any and all applicable rn-e5 6J� federal, state and municipal laws and ordinances and the rules, OP aJ^^A regulations and orders of any and all federal, state and municipal agencies having jurisdiction over the Park and the operation and management thereof. f) the administration and maintenance of all lease documents and park regulations. g) the administration, management and financing of capital improvements to the park which may be approved by owner and which have a total cost of $10,000 or less. 2 V 4. Operating Expenses: From gross revenues collected from the Park, Agent shall: a) Pay all employee salaries at rates authorized by Owner. b) Pay all operating expenses incurred through renting, servicing, maintaining, or repairing the Park and such additional expenses in connection with the Park as may be authorized by Owner. c) Deduct Agent's fee described under "Agent's Fee" below and any other fees due to Agent under the terms of this Agreement. It is understood and agreed by the parties hereto that all costs related to the maintenance and operation of the Park are to be paid from City's funds. Under no circumstances whatsoever shall Agent be required to advance or otherwise expend Agent's own funds for the benefit of the Park. 5. Agent's Authority: City does hereby authorize and direct Agent to do everything reasonably necessary, in the name of and at the expense of City for the proper management of the Park, including, without limitation thereto, periodic inspections, handling tenant requests, supervision of maintenance, arranging for maintenance and repairs as may be necessary for the Park, purchasing all materials and supplies, recommending independent contractors to supply services, and requesting such sums from City as Agent deems necessary to accomplish the foregoing. Agent shall obtain City's approval for an expenditure in excess of $500.00 for any one item, except monthly or recurring operating charges and/or emergency repairs in excess of the maximum, if in the opinion of the Agent such repairs necessary to prevent additional damage and/or liability or a greater total expenditure or to maintain services or conditions to the tenants as called for in their tenancy. Agent shall notify City immediately whenever emergency repairs have been ordered. 6. Employee Coaches: Agent shall control the use and occupancy of the two coaches in the Park owned by the City and reserved for use by Park employees. 7. Records: a) Agent shall compile and maintain those records, books and��le� accounts as required by applicable state and federal law pertaining to mobile home pads &, 3 b) Agent shall maintain full and accurate books and .records of the accounts of the Park, which shall be open to the inspection of Owner at the office of Agent after reasonable notice to Agent. o d UW Agent shall render to Owner a statement on the 20th riay of eacf� �¢ Syr^ , month showing all receipts and disbursements and reflecting the financia c i ions o e immediately Proceeding. Owner shall retain the right at any time without notice to inspect and/or audit the books and records of agent relative to the Park. 8. Payments: Vfl Ube tvu, UGV V, r:n'^ "'^n. r+uCrn �nan w, wa, u_i� u,¢vwi,c� uw balance remaining after all necessary charges have been made as provided in the Agreement. Said monthly statement shall be deemed�y ii=amre and correct between the parties unless Owner notifies Agent i �J writing. In the event there is a deficit in the account of the Park, Agent shall notify Owner of this deficiency, and Owner agrees to forward said amount to Agent within seventy-two (72) hours after notice. 9. Indemnity: Agent shall defend, indemnify and hold harmless the City and its officers, employees, and representatives, with respect to any claim or loss arising out of or in any way related to agent's willful misconduct, fraud, negligence or failure to perform duties required by this agreement. V. OWNER'S DUTIES: Agent and City agree that City's authorities, duties and responsibilities with respect to the Park shall be as follows: Information to Agent: City agrees to promptly furnish Agent with all documents and records to properly manage the Park, including, but not limited to, copies of existing service contracts, copies of all insurance policies and any required endorsements thereto which are carried by City during the term of this Agreement. 2. Hold Harmless: Except for Agent's misconduct or negligence, City shall indemnify and save the Agent and its officers, directors, shareholders, employees, representatives, successors and assigns, harmless from any and all claims, costs and expenses, attorney's fees, litigation, liabilities, and damages arising from or connected with the Park of the performance or exercise of any of the duties, obligations, powers, or authorities herein 4 or hereafter granted to Agent. 3. Insurance: The City is a self insured public agency. City agrees to consider all reasonable recommendations of Agent with respect to insurance coverage to minimize the cost thereof and the possibility of bodily injury, property damage, and loss of rental income. 4. Waiver of Subrogation: City hereby waives all of its rights and those of its insurers with respect to recovery against Agent on account of loss or damage to City's real or personal property where such loss is caused by an insurable peril, including, but not limited to fire or any of the extended coverage hazards and which damage arises out of or in connection with the Park. City shall give notice to all insurance carriers, if any, that the foregoing waiver of subrogation is contained in this Agreement. 5. Reimbursement Advances: City agrees to immediately reimburse Agent, upon demand, to the full extent for all monies advanced by Agent for City's accounts in carrying out the purpose of this Agreement, provided; however, that nothing contained herein shall oblige Agent to make such advances. 6. Governmental Order to Repair, etc.: In the event that any governmental agency, authority, or department shall order the repair, alteration, or removal of any structure or matter on the Park, or if after written notice of the same to City by such body or Agent, the owner fails to authorize Agent or others to make such repairs, alterations, or removals, Agent shall be released from any responsibility in connection therewith, and Owner shall be answerable to such body for any and all penalties and fines whatsoever imposed because of such failure on City's part. 7. Agent's Fee: Owner shall pay Agent for its property management services a monthly fee equal to five percent (5%) of gross revenues. Agent is hereby authorized to deduct the amount of said fee for said services each month, plus any other fees due Agent hereunder, as the first charge upon all gross monthly rental income. 8. Additional Services Rendered: City hereby agrees that for any services rendered by Agent on City's behalf beyond the scope of this Agreement, Agent shall be paid at an hourly rate of eighty dollars ($80.00) per hour. Such additional services shall include, but not be limited to, formal rent control procedures and representation of City before governmental entities. All such additional services shall be approved by the City in writing prior to the rendering of same. Services rendered for the management and financing of capital improvements costing in excess of $10,000 shall be subject to a separate contract. 5 9. Duty to Cooperate: City agrees to cooperate with Agent to facilitate Agent's performance on its duties hereunder. 10. Power to Request: City hereby represents that it is empowered and duly authorized to enter into this Agreement. The City Manager or his or her designee is authorized to grant any approvals or authorizations. required of the City as part of this Agreement. VI. MISCELLANEOUS TERMS: Governing Law. This Agreement shall be construed in accordance with and all disputes hereunder shall be governed by the laws of the State of California. 2. Successor: This Agreement shall be binding upon the parties hereto, their legal representatives, successors, and permitted assigns, provided, however, that this Agreement may not be assigned by the Agent or City without the prior written consent of the other party. 3. Relationship of Parties: Under no circumstances shall this Agreement be construed as creating either a partnership or an employer/employee relationship between the parties hereto. 4. Legal Cost: Where legal assistance is required for such matters as enforcing any terms of the lease, the collection of rents, or eviction proceedings, such action shall be through counsel designated by City and shall be at City's expense. Furthermore, in the event Agent or City shall institute legal proceedings against the other arising out of the terms of this Agreement or the performance hereunder, the prevailing party shall recover from the other, all attorney's fees, costs, and expenses incurred in any such action. 5. Agent shall provide City with a bond or similar agreement of a thir party to indemnify the City for any loss due to theft, embezzlement, default by agent or its employees, officials or representatives. The bond shall be in the sum of $100,000 per occurrence. The form and content of the bond shall be approved by the City Attorney and the City Manager. 6. Notices: Any notice required under the terms herein shall be deemed given upon the placing of it in the United States Mail, postage prepaid, return receipt requested, and addressed to the address designated below. 6 Said address may be changed by either party by mailing written notice to the other party at the last designated address of the other party as provided herein. 7. Waiver: No failure by City or Agent to insist upon the strict performance of any covenant, agreement, term or condition of this Agreement shall constitute a waiver of any such breach or subsequent breach. 8. Entire Agreement: This Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any and all prior agreements or understandings between the parties. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first written above. CITY: AGENT: CITY OF NEWPORT BEACH BENDETTI MANAGEMENT GROUP Date: Date: 22t 1 C Q'? By: By:-905�p—� KeWoT Murp y, ' y Manager Ro . Bendetti, Principal 3300 Newport,Blvd. 1176 Main Street, Suite 100 Newport Beach, CA 92663 Irvine, CA 92614 APPROVED AS TO FORM: 7 03/23/2004 16:23 SCHEDULE OF NAMED INSUREDS = 178447-3-90 The Named Insured on the Declarations page is completed to read as follows: PACIFIC LAND COMPANY PACIFIC INDUSTRIAL CO. D.L. BENDETTI CO. LOS AMIGOS THOROUGHBREDS PACIFIC INDUSTRIAL CONCEPTS BENDETTI MANAGEMENT COMPANY;*<_ AMERICANA LAND ASSOCIATES DBA: FERNWOOD MOBILE HOME PARK AMERICANA LAND ASSOCIATES DBA: LINCOLN CENTER MOBILE HOME PARK BARR FAMILY TRUST, JOHN AND BETTY BARR, J & R INVESTMENTS, LOS AMXODS THOROUGHBREDS AS RESPECTS 45240 LOS CORRALITOS RD., TEMECULA, CA. AIRPORT DISTRIBUTION PARTNERS, A CALIFORNIA GENERAL PARTNERSHIP DMG J & B INVESTMENT CO. NEWPORT TERRACE MOBILE HOME PARK X All other terms and conditions of this policy remain unchanged. N PAGE 02/15 o This endorsement must be attached to Change Endorsement when issued after the Policy is written. e One of the Fireman's Fund Insurance Companies as named in the policy ga 179447-3-90 PAGE 01 OF 01 5 03/23/2004 16:23 7145786 ARMSTRONG ROBITAILE PAGE 03/15 i e s� P N a M S'1 w POLICY NUMBER s 17 M2X 80820573 . NAMED INSURED PACIFIC LAND COMPANY. PORTFOLIO POLICY (R) CRIME DECLARATIONS Insurance is Provided OhIV for those Insuring Agreements, Limits of Insurahce and Endorsements shown below. OTHER INSURING AGREEMENTS EMPLOYEE BENEFIT PLANCS) INCLUDED AS INSURED$: LIMITS OF INSURANCE AND DEDUCTIBLES: INSURING AGREEMENTS LIMIT OF INSURANCE DEDUCTIBLE AMOUNT EMPLOYEE THEFT 9 250,000 $ 2,500 FORGERY OR ALTERATION $ 25,000 $ 2,500 CANCELLATION OF PRIOR INSURANCE ISSUED BY US: BY ACCEPTANCE OF THIS POLICY YOU GIVE US NOTICE CANCELLING THE FOLLOWING POLICY OR BOND NUMBERCS) THE CANCELLATION TO BE EFFECTIVE AT THE TIME THIS POLICY BECOMES EFFECTIVE. Commercial Crime Supplementary State Endorsements CALIFORNIA CHANGES - ESCROW AGENT CCR 01 50 03 00) CR - 1 .,03/23/2eO4 16:23 714570W ARMSTRONG ROBIT#L E PAGE 04/15 Commercial Crime Coverage Form - Loss Sustained Form - CR 00 2103 00 Policy Amendment(s) Commercial Crime Coverage • Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, b. If you arc sued for refusing to pay any instrument duties and what is or is not covered, covered in Paragraph a. above, on the basis that it has been Throughout this policy the words you and your refer forged or altered, and you have our writ- shown in the Declarations, The to the Named insuredwe ten consent defend against the suit, words we, us and our refer to the Company providing o we will pay for ariy'reasonable legal ex - this insurance. penes that you incur and pay in that defense. The amount that we will pay is , Other words and phrases that appear in boldface have in addition to the Limit of Insurance ap- special meaning. Refer to Section F. Definition. pEeable to this Insuring Agreement. A. , Insuring Agreements 3• Inside The Premises - Theft Of Money And Securities Coverage is provided'undcr the following InsuringAgree a. We will pay for loss of money far which a Limit of Insurance is shownin the shown he Declarations: and securities inside the premises or banking premises resulting -directly from theft, 1. Employee Theft disappearance or destruction. We will pay for loss of or damage 'to hlon�j, b. We will pay for loss from damage 'to the securities and other property resulting directly premises or its exterior resulting directly e from theft • committed by an employee, from an actual or attempted theft of Whether identified or not, acting alone or in money and securities, if you are the a collusion with other persons. owner of the premises or are liable for 3 damage to it. 2. Forgery Or Alteration C. We will pay for loss of or damage to a 3 a. We will pay for loss resulting directly locked safe, vault, cash register, cash box from forgery or alteration of checks, or cash drawer located inside the premises drafts, promissory notes, or similar writ- resulting directly from an actual or at - ten promises, orders or directions to pay tempted theft of or unlawful entry into a sum certain in money that are: those containers. (1) Made or drawn by or drawn upon 4. Inside The Premises - Robbery Or Safe Burglary Of Other Property you; or. (2) Made drawn by one acting a. We will pay for loss of or damage to other property: a • your agent; , (1) Inside the premises resulting directly or that are purported to have been so from an actual or attempted robbery' made or drawn, of a custodian; or I This Form must be attached to Change Endorsement when issued after the policy is written. One of tho Vremsn's Fund Insurance Cotnpanles as named in the policy aI se rotary CROO21$40 COpyright;16=anee Services Office, Inc., 1999 President . Page 1 of I I e3/23/2004 16:23 714578# (2). Inside the premises in a safe or vault M%dtiug directly from an actual or attempted safe burglary. b. We will pay for loss from damage to the premises or its exterior resulting directly from an actual or attempted robbery or safe burglary of other property, if you are the owner of the premises or are liable for damage to it - a. We will, pay for loss of or damage to a locked safe or vault located inside the premises resulting directly from an actual or attempted robbery or safe burglary, S. Outside The Premises a. We will pay for loss of money and securities outside the premises in the rare and custody of •a messenger or an armored motor vehicle company result- ing directly from theft, disappearance or destruction. b. We will pay for loss of or damage to other property outside the premises in the care and custody of a messenger or an armored motor vehicle company result- ing directly from an actual or attempted robbery. 6. Computer Fraud We will pay for loss of or damage to money, securities and other property resulting directly from the use of any computer to fraudulently cause a transfer of that property from.inside the premises or banking premises: a. To a person (other than a messenger) outside those premises; -or b, To a place outside those premises. 7. Money Orders And Counterfeit Paper Cur- rency We will pay for loss resulting directly from your having accepted in good faith, in ex change for merchandise, money or services: a. Money orders issued by any post office, express company or bank that are not paid upon presentation; or Caee2130 Capyttght lnmrmw Services OiGce, Inc., 1999 ARMSTRONG ROBITJJLE PAGE 05/15 b. Counterfeit paper currency that is ac- quired during the regular course of busi- mess. B. Limit Of bsurance The most we will, pay for loss in any one occurrence is the applicable Limit of Insurance shown in the Declarations, C. Deductible We will not pay for loss in any one occurrence unless the amount of loss exceeds the Deductible Amount shown in the Declarations. We will then Pay the amount of loss in excess of the Deductible Amount, up to the Limit of Insurance. In the event more than one Deductible Amount could apply to the same loss, only the highest Deductible Amount may be applied. D. Exclusions I. This insurance does not apply to: a. Acts Committed By You, Your Partners Or Your Members Loss resulting from theft or any other dishonest act committed by: (1) You; or (2) Any of your partners or members; whether acting alone or in collusion with other persons. b. Acts Of Employees, Managers, Directors, Trustees Or Representatives Loss resulting from theft or any other dishonest act committed by any of your employees, managers, directors, trustees or authorized representatives: (1) Whether acting alone or in collusion with other persons; or (2) While performing services for you or otherwise; except when covered under Insuring Agreement A. 1. Page 2 of it I z n 3 P a 0. is w e3/23/2oe4 16:23 714578JW, ARMSTRONG ROBITATLLE PAGE 06/15 c. Govcruncntal Action cancelled and not reinstated since the last Loss resulting from seizure or destruction such cancellation. of property by order of governmental b. Inventory Shortages authority. d. Indirect Loss Loss that is an indirect result of any act _ or occurrence covered by this insurance including, but not limited to, loss result- ing from: (1) Your inability torealize•incomethat' you would have realized had there been no loss of or damage to money, securities or other property. (2) Payment of damages of any type for which you are legally liable, But, we Will pay compensatory damages arising directly from a loss covered under this insurance, (3) Payment of costs, fees or other ex- penses you incur in establishing ei- ther the existence or the amount of loss under this insurance. Q. Legal Expenses Expenses related to auy'legal action, ex- cept when covered under Insuring Agreement A,2, f. Nuclear Loss resulting from nuclear reaction, nu, clear radiation or radioactive contam- ination, or any related act or incident. B. War And Similar Actions Loss resulting from war, whether or not declared, warlike action, insuriection, re- bellion or revolution, or any related act or incident. 2. Insuring Agretxnent A.]. does not apply to: a. Employee Cancelled Under Prior Insur- ance Loss caused by any employee of yours, or predecessor in interest of yours, for whom similar prior insurance has been CROc21 3-00 CePmvn Insurance services ofrlce, Inc., lo06 Loss, or that part of any loss, the proof Of which as to its -existence or amount is dependent upon: (1) An inventory computation; or (2) A profit and loss computation However, where you establish wholly apart from such computations that you have sustained a loss, then you may offer your inventory records and' actual phys- ical count of inventory in support of the amount elf loss claimed, c. Trading Loss resulting directly or indirectly from trading, whether in your name or in a genuine or fictitious account. Cl, Warehouse Receipts Loss resulting from fraudulent or dis- honest signing, issuing, canceling or fail- ing to cancel, a warehouse receipt or any papers connected with it. 3. Insuring'Agrcements A.3., A.A. and A.S. do' not apply to: a. Accounting Or Arithmetical Enurs Or Omissions LOSS resulting from accounting or arith- metical errors or omissions. b. Exchanges Or Purchases Loss resulting from the giving or surren- dering of property in any exchange or purchase. d, Fin: Loss resulting from fire, however caused, except: (1) Loss from damage to a safe or vault; and (2) Under Insuring Agreement A,3., loss of or damage to money and sceurf- ties. Page 3 of 11 03/23/2004 16:23 714578W ARMSTRONG ROBIT#L-E PAGE 07115 d. Money Operated Devices Loss of property contained in any money operated device unless the amount of money deposited iu it is recorded by a continuous recording instrument in the device. e. Motor Vehicles Or Equipment And Ac- cessories Loss of or damage .to motor vehicles, trailers or semi -trailers or equipment and accessories attached to them, f. Transfer Or Surrender Of Property (1) Loss of or damage to property after It has been transferred or surren- dered to a person or place outside the premises or banking premises: (a) On the basis of unauthorized instructions; (b) As a result of a threat to do bodily harm to any person; or (c) As a result of a threat to do damage to any proporty. (2) But, this Exclusion does not apply under Insuring Agreement A.S. to loss of money, securities or other property while outside the premises in the care and custody of a messen- ger if you: (a) Had no knowledge of any threat at the.time the convey- ance began; or (b) Had knowledge of a threat at the time the conveyance began, but the loss was not related to the threat. g. Vandalism Loss from damage to the premises or its exterior, or to any safe, vault, cash regis- ter, cash boat, cash drawer or other Property by vandalism or malicious mis- chief, h. Voluntary Parting Of Title To Or Pos- session Of Property Loss resulting from your, or anyone act- ing on your express or implied authority, being induced by any dishonest act to voluntarily part with title to or pos- session of any property. 4. Insuring Agreement A.6, does not apply to: Inventory Shortages Loss, or that part of any loss, the proof of which as to its existence or amount is de- pendent upon: a. An inventory computation; or b. A profit and loss computation. E. Conditions The following Conditions apply in addition to the Common Policy Conditions: 1. Conditions Applicable To All lnsuring Agreements a. Cancellation As To Any Employee This insurance is cancelled as to any employee: (1) immediately upon discovery by:. (a) You; or (b) Any of your partners, members, managers, officers, directors or trustees not in collusion 'with the employee; of theft or any other dishonest act committed by the employee whether before or after becoming employed by you. (2) On the date • specified in a notice mailed. to the first Named insured. That date will be at .east 30 days af- ter the date of mailing. We will mail or deliver our notice to the first Named Insured's last mail- ing address known to us. If notice is mailed, proof of mailing will be suf- ficient proof of notice. CRW213.00 CDPYA rlt, ry9a== Services Office, Inc., 1999 Page 4 of 11 I 03/23/2004 16:23 714578W `i b. Concealment, Misrepresentation Fraud ARMSTRONG ROBIT#LE PAGE 08/15 Or also notify the local law enforcement authorities. .This insurance is void in any case of fraud by you as it relates to this insurance at any time, It is also void if you or any other Insured, at any time, intentionally conceal or misrepresent a material fact concerning; (2) Submit to examinrition under oath at our request and give us a signed statement of your answers, (3) GIve us a detailed, sworn proof of loss within 120 days. (1) This insurance; (4) Cooperate with us in the ]nvcsti- =� (2) The property covered under this in. gation and settlement of any claim, r surance; e, Employee Benefit Plan(s) (3) 'Your interest in the property cov- (1) The empluYee benefit plans) shown _ eyed under this insurance; or in the Declarations are included as (4) A claim under this insurance. Insureds under Insuring Agreement A,L C. Consolidation - Merger (2) If any employee benefit plan(s) is If through consolidation or merger with, cured jointly with any -other entity or purchase or acquisition of assets or I]- under this insurance, you or the abilities of, some other entity, any addi-• Plan ' Administrator must select a tional persons become employees or you Lunrt of Insurance for Insuring acquire the use and control of any addi- Agreement A.]. that is sufficient to tional premises: provide a 'Limit • of Insurance for each Plan that is at least equal to (1) You must give us written notice and that required if each Plan were sep- obtain our written consent to extend arately insured, ' this insurance to, such additional employees or premises. We may (3) With respect to losses sustained or condition our consent upon pay- discovered by any such Plan, Insur- ment of an additional premium; but ing Agreement A.I. is replaced by the following: (2) For the fast 90 days after the effec• , tive date of such consolidation, We will pay for loss of or damage to merger or purchase or.acquisition of funds and other property resulting assets or liabilities, any insurance af• directly from fraudulent or dishonest forded for employees or premises acts committed by an employee, also applies to these additional cut- • whether identified or not, acting ployees or premises for acts commit- alone or in collusion with other fed or events occurring within this persons. 90 day period. (4) If the fast Named Insured is an en - Duties In The Event Of Loss City other than a Plan, any payment After you discover a loss or a situation we make to that Insured for loss sustained by any Plan will be held M that may result in loss of or damage to by that Insured for the use and ben- monoy, securities or other property you efit of the Plan(s) sustaining the loss. must: (1) Notify us as soon as possible. If you (5) If two or more Plans are insuredunder this insurance, any payment have reason to believe that any loss we make for loss: (except for loss covered under, In- suring Agreements A. 1. or A.2.) in- (a) Sustained by two or more volvcs a violation of law, you must Plans; or . QUM 3-00 ' fCopyright, insurance so mac, oiicc, Inc., l99$ Page 5 of ] ] 03/23/2004 16:23 71457BJ6 ARMSTRONG ROBIT4LE PAGE 09/15 (b) Of commingled funds or other property of two or more Plans; that arises out of one occurrence, is to be shared by each Plan sustaining loss in the proportion that the Limit Of Insurance required for each Plan bears to the total of those limits. (6) 1'lre Deductible Amount applicable to Insuring Agreement A. 1. does not apply to loss sustained by any em- ployee benefit plan(s). f. Extended Period To Discover Loss (1) we will pay for loss that you sus. tained prior to the effective date of termination or cancellation of this insurance, which is discovered by You no later than 1 year from the date of that termination or cancella- tion. (2) However, this extended period to discover loss termivates immediately upon the cdective date of any other insurance obtained by you replacing in whole or in part the insurance af- forded hereunder, whether or not such other insurance provides cov- erage for loss sustained prior to its effective date. g. Joint Insured (1) If more than one Insured is named in the Declarations, the first Named Insured will act for itself and for ev- ery other Insured for all purposes of this insurance. If the first Named Insured ceases to be covered, then the next Named Insured will become the first Named Insured. (2) If any Insured, or partner, member or officer of that Insured has know- ledge of any information relevant to this insurance, that knowledge is considered knowledge of every In. sured. (3) An employee of any Insured is con- sidered to be an employee of every Insured. CRaa21 3.00 Copyright, Imron" services office, Inc., 1998 (4) If this insurance or any of its cover- ages is cancelled or terminated as to any ,Insured, loss sustained by that Insured is covered only if discovered by you during the period of time provided in the Extended Period To Discover Loss Condition E.11 However, this extended period to discover loss terminates as to that Insured immediately upon the effec- tive date of any other insurance ob- tained by that Insured replacing in whole or in part the insurance af- forded hereunder, whether or not such other insurance provides cov- erage for loss sustained prior to its effective date. (5) we will not pay more for loss sus- tained by more than one Insured than the amount we would pay if all the loss bad been sustained by one Insured, h. Legal Action Against Us You may not bring any legal action against us involving loss: (1) Unless you have complied with all the terms of this insurance; (2) Until 90 days after you have tiled proof of loss with us; and (3) Unless brought within 2 years from the date you discover the loss. if any limitation is prohibited by law, such limitation is amended so as to equal the minimum period of limitation pro- vided by such law. i. Liberalization If we adopt any revision that would broaden the coverage under this insur- ance without additional premium within 45 days prior to or during the policy pa- And, the broadened coverage will imme- diately apply to this insurance. Page 6 of 11 03/23/2004 16:23 714578W ARMSTRONG ROBITJLE PAGE 10/15 S N 0 Loss Covered Under A4ore Than One Coverage Of This Insurance If two or more coverages of this insur- ance apply to the same loss, we will, pay the lesser o£ (1) The actual amount of loss; or . (2) The sum of the Limits of insurance applicable to those coverages. k. Loss Covered Under This Insurance And Prior .insurance. Issued By 'Us Or Any Affiliate If any loss is covered: Partly by this insurance; and (2) Partly by any prior Cancelled or ter• minated insurance that -we or any affiliate had issued to you or any predecessor in interest; the most we will pay is the Iarger of the amount recoverable under this insurance or the prior insurance. Regardless of the number of years this insurance remains in force or the number of premiums paid, no Limit of Insurance cumulates from year to year or policy period to policy period_ 1. Loss Sustained Subject to the Loss Sustained During Prior Insurance Condition E.l.m, we Will pay for loss that you sustain through acts committed or events occurring dur- ing the policy period shown in the Dec- larations and discovered by you: (1) During the policy period; or- (2) During the period of time provided in the Extended Period To Discover Loss Condition E. l.E m. Loss Sustained During Prior Insurance (1) If you, or any predecessor in inter- cst; sustained loss during theperiod Of any prior insurance that you or the predecessor in interest could have reeoveicd under that insurance except that the time within which to discover loss had expired, we will pay for it under this insurance, pro- vided: (a) This insurance became effective at the time of cancellation or termination of the prior insur- ance; and (b) The loss would have been cov- ered by this insurance had it been in effect when the acts or events 'causing the loss were eommittcd or occurred. (2) The insurance under this Condition is part of, not in addition to, the Limits of -Insurance applying to -this insurance and is limited to the lesser of the amount recoverable under: (a) This insurance as of its effective date; or (b) The prior insurance had it re- mained in effect. n. Other Insurance This insurance does not apply to loss re- coverable or recovered under other in. surance Or indemnity. If the limit of the other insurance or indemnity is insuffi- cient to cover the entire amount of the loss, this insurance will apply to that part of the loss, other than that falling within any Deductible Amount, not recoverable or recovered under the other insurance or indemnity. However, this insurance will not apply io the amount of loss that is more than the applicable Limit of Insurance shown in the Declarations. o. Ownership Of Property; Interests Cov- ered The property covered under this insur- ance is limited to property: (I) That yak, own or lease; (2) That you hold for others; or (3) For which you are legally liable, ex- cept for property inside the premises of a client of yours. ,x CR00213.00 COPYritbt imw•snce services ofricc, Ine., 1992 Page 7 of I l o' 03/23/2004 16:23 7145786 ARMSTRONG ROBI#LE PAGE 11/15 I3Owever, this insurance is for your bcn- which we have paid or settled. You must efit only. It provides no rights or benefits also do everything necessary to secure to any other person or organization. Any claim for loss that is covered under those rights and do nothing after loss to imps fiyem, this insurance must be presented by you. P. Records t. Valuation - Settlement You most keep records of all property (1) Subject to Section B. Limit Of in - . covered under this insurance so we can ' surance, we will pay for: verify the amount of any loss. (a) Loss of money but only up to q. Recoveries and including its face value. We may, at our option, pay for 1 () Any recoveries, less the cost of loss of money•issued by any fairing them, made after settlementent country other than the United of loss covered by this insurance will States of America: be distributed as follows: (i) At face value in the money (a) To you, until you are reim- issued by that country; or bursed for any loss that you (ii) In the United States of sustain that exceeds the Limit America dollar equivalent of Insurance and the Deductible determined by the Tate of Amount, if any; exchange on the day the (b) Then to us; until we are wim- loss was discovered. bursed for the settlement made;and (b) Loss of securities but only up to and including their value at (c) Then to you, until youare re- the close of buiiness on the day imbursed for that part of the the loss was discovered, We loss equal to the Deductible may, at our option: Amount, if any. (i) Pay the value of such se- (2) Recoveries do not include any re- curitles or replace them in covery: kind, in which event you must assign to us all your (a) From insurance, suretyship, re- rights, title and interest in insurance, security or indemnity and to those securities; or taken for our benefit; or (il) Pay the cost of any Lost (b) Of original securities after du- Securities Bond required in pliicates of them have been is. connection with issuing mod• duplicates of the securities, r, Territory I3owever, we will be liable , only for the payment of s6 This insurance covers acts committed or much of the cost of the events occurring within the United Statcs bond as would be charged of America (including its territories and for a bond having a penalty possessions), Puerto Rico and Canada. not exceeding the lesser of the: s. Transfer Of Your Rights Of Recovery Against Others To Us i. Value of the securities at the close of busi You must transfer to us all your rIghts ness on the day the Of recovery against any person or organ- loss was discovered; ization for any loss you sustained and for or cstooal 2.00 Copylisht Iomuonce $VNIMS Oalco, lat., 1998 Pago 8 of 11 ti 03/23/2004 16:23 714578�6 ARMSTRONG ROBI#LE PAGE 12/15 ii. Limit of lusurancc. (c) Loss of or damage to other property or loss from damage to the premises or its exterior for the replacement cost of the property without deduction for depreciation. However, we will not pay more than the least of the following: (i) The limit of Insurance applicable to the lost or damaged Property. (ii) The cost to replace the lost or damaged property with property of cdmparable material and quality and used for the same purpose; or (iii) The amount you actually spend that is necessary to repair or replace tbo lost or damaged property. We will not pay on a replace- ment cost basis for any loss or damage: (i) Until the lost or damaged property is' actually re- paired or replaced; and (ii) Unless the repairs or re- placement are made as soon as reasonably possi- ble after the loss or dam- age. If the lost or damaged property is not repaired or replaced, we Will pay on an actual cash value basis. (2) We may, at our option, pay for loss of or damage to property other than 4 money: (a) In the money of the country in which the loss occurred; or (b) In the United States of America N dollar equivalent of the money u of the country in which the loss a CR00213,00 19 Copyright, Jn=rwcc Servieeg Office, int., ign Occurred determined by the'rate of exchange on the day the loss was discovered. (3) Any property that we pay for or rc- place becomes our property, 2. Condition Applicable To Insuring Agreement A.1. Territory We will pay for loss caused by any employm- white temporarily outside the territory speci- fied in the Territory Condition L.l,r, for a period of not more than 90 days. 3. Conditions Applicable- To Insuring Agree. ment A.2. a. Deductible The Deductible Amount does not apply to legal expenses paid under Insuring Agreement A.2. b. Facsimile Signatures We will treat mechanically reproduced facsimile signatures the some as hand- written signatures. c. Proof Of Loss You must include with your proof of loss any instrument involved in that loss, 'or, if that is not possible, an affidavit setting forth the amount and cause of loss. d. Territory We will cover loss you sustain anywhere . in the world, The Territory Condition 1-s.l.r•. does not apply to Insuring Agree- ment A.2. 4. Conditions Applicable To Insuring Agtec- ments'AA. And A.5. a. Armomd Motor Vehicle Companies Under Insuring Agreement A.5., we will only pay for the amount of loss you cannot recover: (1) Under your contract with the armored motor vehicle company; and Page 9 of 11 03/23/2004 16:23 714578�6 ARMSTRONG ROBI#LE PAGE 13/15 (2) From any insurance or indemnity carried by, or for the benefit of cus- tomers of, the armored motor vchi. Ole company. b. Special Limit Of lusuranec For Specified property We will, only pay up to $5,000 for any one occurrence of loss of or damage to: (1) Precious metals, precious or semi- precious stones, pearls, fun, or completed or partially completed articles made of or containing such materials that constitute the princi- pal value of such articles; or (2) Manuscripts, drawings, or records of any kind or the cost of recon- structing them or reproducing any information contained in them. S. Conditions Applicable To Insuring Agree- ment A.6. a Special Limit Of Insurance Por Specified Property We will only pay up to $5,000 for any one occurrence of loss of or damage to manuscripts, drawings, or records of any kind or the cost of reconstructing them or reproducing any information con- tained in them. b. Territory We will cover loss you sustain anywhere in the world. The Territory Condition E.l.r. does not apply to Insuring Agree- ment A.6. P. Definitions 1. Banking premises means the interior of that portion of any building occupied by a banking institution or similar safe depository. 2. Client means any entity for whom you per- form services under a written agreement. 3. Counterfeit means an imitation of an actual valid original which is intended to deceive and to be taken as the original. 4. Custodian means you, or any of your partners or members, or any employee while having care and custody of property inside the CR0021 3.00 Copyright Insurance $ervitts Onitt, Into 1998 premises, excluding any person while acting as a watcbperson or janitor. 5. Employee: a. Employee means: (1) Any natural person: (a) while in your service or for 30 days after termination of ser- vice; (b) Who you compensate directly by Waxy, wages or commis- sions; and (c) Who you have the right to di- rect and control while perform- ing services for you; (2) Any natural person who is furnished temporarily to you: (a) To substitute for a permanent employee as defined in Para- graph (1) above, who is on leave; or (b) To meet seasonal or short-term work load conditions; while that person is subject to your direction and control and perform- ing services for you, ''excluding, however, any • such person while - having care and custody of property outside the premises; or (3) Any natural person who is: (a) A trustee, officer, employee, administrator or manager, ex- cept an administrator or man- ager who is an independent contractor, of any employee benefit plau(s) insured tinder this inmirance; and (b) Your director or trustee while that person is handling funds or other property of any em- ployee benefit plan(s) insured under this insurance. b. Employee does not mean: (1) Any agent, broker, person leased to you by a labor leasing firm, factor, commission merchant, consignee, Page 10 of 11 . :1 g 0 03/23/2004 16:23 714578W ARMSTRONG ROBITATILE PAGE 14/15 independent contractor or represen- (1) An act or series of related acts in- tative of the same general character; volving one or more persons; or or (2) Any manager, director or. trustee except while performing acts coning within the scope of the usual duties of an employee. 6. Employee benefit plan(s) means • any welfarc or pension benefit plan shown in the Decla- rations that is subject to the i✓mployce Re- tirement • Income Security Act of 1914 (ERISA). 7. forgery means the signing ' of the •same • of another person or organization with intent to deceive; it does not mean a signature which' consists in Whole or in part of one's own name signed with or without authority, in any capacity, for any purpose. 8. funds means money and securitiess. 9: Manager means a person serving in a direc- torial capacity for a limited liability company. 10.. Member means an owner of a limited lability. company represented by its membership in- terest, who also may serve as a manager. 11. Measctrger means you, or a relative of yours, or any of your partners or members, or any employee while having care and custody of property outside the premises. 12, Money means: a. Currency, coins and bank notes in cur- rent use and having a face value; and b. Travelers checks, register checks and money orders held for sale to the public. 13. Occurrence means: a. As respects Insuring Agreement A.I., at loss caused by, or involving, one or more cinphtyces, whether the result of a single act or series of acts. b. As respects Insuring Agreement A.2., all loss caused by any person or in Which that person 'is involved, whether the loss involves o= or more instruments. c. As respects all other Insuring Agree- ments: CR0021 3-00 C�pyrighL Innuancc Setvlcu Ofriec, Inc,, 1995 (2) An act or event, or a series of related acts or events not involving any person. 14. Other property means any tangible property other than money and securities that has in- trinsic value but does not include any prop, erty excluded under this insurance. 15. Premises means the' interior of that portion of any building you occupy In conducting Your business. • 16. Robbery means the unlawful taking of prop- erty from the care and custody of a person by one who has: a. Caused or threatened to cause that per- son bodily harm; or b. Committed an obviously unlawful act witnessed by that person. 17. Safe burglary means the unlawful taking of: a. Property from within a locked safe' or vault by a person unlawfully entering the safe or vault as evidenced by marks of forcible entry upon its exterior; or b. A safe or vault from inside the premises. 18. Securities means negotiable and nonnegoti- able instruments or contracts representing ei- ther money or property and includes: - a. Tokens, tickets, revenue and other stamps • (whether represcnted by actual stamps or unused value in' a meter) in Current nSe; and b. Evidences of debt issued in connection with credit or charge cards„ which cards are not issued by you; but does not include money. 19, Theft means the unlawful taking of money, securities, or other property to the deprivation of the Insured. 20. 'Watchperson means any person you retain specifically to have care and custody of prop- erty inside the premises and who has no other duties. Page 11 of 11 F03/23/2004 16:23 714578 f ARMSTRONG ROBIT#LE PAGE 15/15 California Changes - Escrow Agent - CR 0150 03 00 Policy Amendment(s) Commercial Crime Coverage Tltis endorsement modifies insurance provided under the following: Commercial Crime Coverage Form Commercial Crime Policy Employee Theft and Forgery Policy A. The following is added to Section F. Defmitions: 1. Employee also includes any: a. Officer, director or eCriployee of yours who is not compensated when perform- ing acts coming within the scope of the usual duties of an officer or employee of yours; and employee shall not be a defense to any suit, action or other legal proceeding against us. R. The following is added to the Cancellation Of Policy Condition: b. Member of any of your committees duly elected or appointed to examine or audit or have custody of your property. C. The ownership of all or a portion of the shares of the Named Insured by any Notice of Cancellation No eaucellatiort of this policy, whether at your re- quest or our request, sball take effect prior to the expiration of 30 days after written notice of such cancellation has been filed with the Commissioner of Corporations. Exclusion, DA.a. Acts Committed By You, Your Partners Or Your Members is deleted if you arc licensed as an escrow agent'by the Commissioner Of Corporations of the State of California. This Form must be attached to Change Endomcment when isaued after the policy is written One of the Firemaulss Fmd tas mace Companies as named in the policy �l sNw� AV B etaty President C90150 3.00 CA Copyright, lt=aace smicet oface, fee., 1999 03/23/2004 16:23 71457OW ARMSTRONG ROBILLE PAGE 01/15 FAX COVER SHEET ARMSTRONG/ROBITAILLE INSURANCE SERVICES P.O. Box 34009 • Fullerton, CA 92834-9409 (714) 578-7290 • Fax (714) 626-7573 Email: svanauker@arinsurance.eom TOt Evelyn Tseng—City of NPB DATE: 3123104 FROM: STEVE VAN AUSER CPCU,CLU FAM 949-644-3073 RE: Marinapark—Crime coverage for Bendetti Management Co. Dear Evelyn, Here are the pages for the Crime coverages on above. If you have any questions, please get back to me. 81ncerely, i eve Van Aulter TOTAL NO. OF PAGES (including this cover page): 15 If you did not receive all of the pages, please call sender as soon as possible. Email at: svanauker cr arinsurance.com CONFIDENTIALITY NOTICE... This facsimile transmission may contain confidential information which is intended only for the use of the person(s) named above. If you are not the intended recipient, you are hereby advised that any disclosure, copying, distribution or the taking of any action in reliance on the contents of this information is prohibited. if you have roccivad this transmission in error, olease notify us to arrange for the return of the documents. ava�:aaisannemenewLvomaehsvorox,doc CITY OF NEWPORT BEACH ADMINISTRATIVE SERVICES DEPARTMENT -Revenue. Date: March 24, 2004 To: Robin Clauson From: Evelyn Tseng 15T Subject: Bendetti Management bond CC: Glen Everroad Hi Robin: Enclosed is the relevant provision from the Bendetti Management Agreement which requires that Bendetti provide us with a bond, the form and content of which shall be approved by the City Attorney. Also enclosed is what Bendetti's insurance agent sent me — a Crime Declaration insuring against employee theft to $250,000. Does the insurance policy comply with the bond requirement? If so, please sign off on the insurance copy as approved by the City Attorney's office and return to me for my records. If it doesn't, let me know so can call Mr. Mecham to discuss. '' Thanks. I .,I. , I G "ki 04- . bw i<..f oc .tfi�eeFt�' CA !-t<cn Nn n 9. Duty to Cooperate: City agrees to cooperate with Agent to facilitate Agent's performance on its duties hereunder. 10. Power to Request: City hereby represents that it is empowered and duly authorized to enter into this Agreement. The City Manager or his or her designee'is authorized to grant any approvals or authorizations required of the City as part of this Agreement. VI. MISCELLANEOUS TERMS: Governing Law. This Agreement shall be construed in accordance with and all disputes hereunder shall be governed by the laws of the State of California. 2. Successor: This Agreement shall be binding upon the parties hereto, their legal representatives, successors, and permitted assigns, provided, however, that this.Agreement may not be assigned by the Agent or City without the prior written consent of the other party. 3. Relationship of Parties: Under no circumstances shall this Agreement be construed as creating either a partnership or an employer/employee relationship between the parties hereto. 4. Legal Cost: Where legal assistance is required for such matters as enforcing any terms of the lease, the collection of rents, or eviction proceedings, such action shall be through counsel designated by City and shall be at City's expense. Furthermore, in the event Agent or City shall institute legal proceedings against the other arising out of the terms of this Agreement or the performance hereunder, the prevailing party shall recover from the other, all attorney's fees, costs, and expenses incurred in any such action. 5. Agent shall provide City with a bond or similar agreement of a thir party to indemnify the City for any loss due to theft, embezzlement, , default by agent or its employees, officials or representatives. The bond shall be in the sum of $100,000 per occurrence. The form and content of the bond shall be approved by the City Attorney and the City Manager. 6. Notices: Any notice required under the terms herein shall be deimed given upon the placing of it in the United States Mail, postage prepaid, return receipt requested, and addressed to the address designated below. A 0 W J 03/23/2004 PAGE 02/15 SCHEDULE OF NAMED INSUREDS = 17807-3-90 The Named Insured on the Declarations page is completed to read as follows: PACIFIC LAND COMPANY PACIFIC INDUSTRIAL CO. D.L. BENDETTI CO. LDS AMIGOS THOROUGHBREDS PACIFIC INDUSTRIAL CONCEPTS BENDETTI MANAGEMENT COMPANY;*<-. AMERICANA LAND ASSOCIATES DBAt FERNWOOD MOBILE HOME PARK AMERICANA LAND ASSOCIATES DBA: LINCOLN CENTER.MOBILE HOME PARK BARR FAMILY TRUST, JOHN AND BETTY BARR, J & R INVESTMENTS, LOS AMIGOS THOROUGHBREDS AS RESPECTS 45240 LOS CORRALITOS RD., TEMECULA, CA. AIRPORT DISTRIBUTION PARTNERS, A CALIFORNIA GENERAL PARTNERSHIP DMG J & B INVESTMENT CO. NEWPORT TERRACE MO➢ILE HOME PARK All other terms and conditions of this policy remain unchanged. This endorsement must be attached to Change Endorsement when issued after the Policy is written. One of the Fireman's Fund Insurance Companies as named in the policy a 178447.3-90 PAGE 01 OF 01 S 5 03%23/2004 16:23 7145787486 i ARMSTRONG ROBITA_I�LLE PAGE 03/15 POLICY NUMBIER s 17 MZX 80320573 . NAMED INSURED PACIFIC LAND COMPANY. PORTFOLIO POLICY (R) CRIME DECLARATIONS Insurance is provided only •Far those Insuring Agreements, Limits of Insurance and Endorsements shown below. - OTHER INSURING AGREEMENTS . EMPLOYEE BENEFIT PLANCS) INCLUDED AS INSUREDS: LIMITS OF INSURANCE AND DEDUCTIBLES= INSURING AGREEMENTS LIMIT OF INSURANCE DEDUCTIBLE AMOUNT EMPLOYEE THEFT A 250,000 $ 2,500 FORGERY OR ALTERATION S 25,000 $ 2,500 CANCELLATION OF PRIOR INSURANCE ISSUED BY US: BY ACCEPTANCE OF THIS POLICY YOU GIVE US NOTICE CANCELLING THE FOLLOWING POLICY OR BOND NUMBERCS) THE CANCELLATION TO BE EFFECTIVE AT THE TIME THIS POLICY BECOMES EFFECTIVE. CammeMcial Crime Supplementary State Endorsements CALIFORNIA CHANGES - ESCROW AGENT CCR 01 50 03 00) CR - 1 03/23/2004 16:23 7145787406 ARMSTRONG ROBITA 1 LE t PAGE 04/15 7 N V Commercial Crime Coverage Form - Loss Sustained Form - CR 40 21 03 00 Policy Amendmcnt(s) Commereial Crime Coverage • Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is or is not covered. Throughout this policy the words you and your refer to the Named Insured shown in the Declarations. The wards tve, us and our refer to the Company providing this insurance. Other words and phrases that appear in boldface have special meaning. Refer to Section F. Definitions. A...Lisui•iagAgieements . Coverage is provided under the following Insuring Agreements for which a Limit of Insurance is shown in the Declarations: L Employee Theft We will pay for loss of or damage io money, securities and otlier property resulting directly from theft • committed by an employee, whether identified or not, acting alone or in collusion with other persons. 2. Forgery Or Alteration a. We will pay for loss resulting directly from forgery or alteration of checks, drafts, promissory notes, or similar writ- ten promises, orders or directions to pay a sum certain in money that are: (1) Made or drawn by or drawn upon YOU; or. (2) Made or drawn by One acting as your agent; Of that are purported to have been so made or drawn, b. If you are sued for refusing to pay any instrument covered in Paragraph a. above, on the basis that it has been forged or altered, and you have our writ- ten consent to defend against the suit, we will pay for ady'reasonable legal ex- penses that you incur and pay in that defense: The amount that we will pay is. in addition to the Limit of Insurance ap- plicable to this Insuring Agreement, 3_ inside The Premises - Theft Of Money And Securities a. We will pay for loss' of money and securities inside the premises or banking premises resulting directly from theft, disappearance or destruction. b. We will pay for loss from damage -to the premises or its exterior resulting directly from an actual or attempted theft of money and securities, if you are the owner of .the premises or are liable for damage to it. C. We will pay for loss of or damage to a locked safe, vault, cash register, cash box or cash drawer located inside the premists resulting directly from an actual or at- tempted theft of or unlawful entry into those containers. 4. lnside The Premises - Robbery Or We BuW, ary Of Other Property, a. We will pay for loss of or damage to other property_ (1) Inside the premises resulting directly from an actual or attempted robbery' of a custodian; or This Farm must be attached to Change Endorsement when issued after the policy is written. One of the Areman'a Fund insurance CompunleS as named in the policy Sc [Crary FIL'SjdCnt CRoe21 3.00 Copynal�4' lasurance SerYice:office, Inc., 1998 Page 1 of 11 03/23/2004 16:23 714578748,E ARMSTRONG ROBITALLLE PAGE 05/15 (2), Inside the premises in it safe or vault resulting directly from an actual or attempted We burglary. b. We will pay for loss from damage to the premises or its exterior resulting directly from an actual or attempted robbery or safe burglary of other property, if you are the owner of the premises or are liable for damage to it. o. We will, pay for loss of or damage to a locked safe or vault located inside the premises resulting directly from an actual or attempted robbery or safe burglary, 5. Outside The Premises a. We will pay for loss of money and securities outside the premises in the care and custody of •a messenger or an armored motor vehicle company result- ing directly from theft, disappearance or destruction. b. We will pay for loss of or damage to other property outside the premises in the care and custody of a messenger or an armored motor vehicle company result- ing directly from an actual or attempted robbery. 6. Computer Fraud We will pay for loss of or damage to money, securities and other property resulting directly from the use of any computer to fraudulently cause a tramsfer of that property f xun.inside the premises or banking premises: a. To a person (other than a messenger) outside those premises; -or b. To a place outside those premises, 7. Money Orders And Counterfeit Paper Cur. rency We will pay for loss resulting directly from your having, accepted in good faith, in ex- change for merchandise, money or services; a. Money orders issued by any post office, express company or bank that are not paid upon presentation; or b. Counterfeit paper currency that is ac- quirefl during the regular course of busi- ness. B. Limit Oflnsurance The most we will pay for loss in any one occurrence is the applicable Limit of Insurance shown in the Declarations, C. Deductible We will not pay for loss in any one occurrence unless the amount of loss exceeds the Deductible Amount shown in the Declarations. We will then Pay the amount of loss in excess of the Deductible Amount, up to the Limit of Insurance. In the event more than one Deductible Amount could apply to the same loss, only the highest Deductible Amount may be applied, D. Exclusions 1. This insurance does not apply to: a. Acts Committed By You, Your Partners Or Your Members Loss resulting from theft or any other dishonest act committed by: (1) You; or (2) Any of your partners or members; whether acting alone or in collusion with other persons. b. Acts Of Employees, M ers, Directo Trustees Or Representatives Loss resulting from theft or any other dishonest act committed by any of your employees, mans rs ors, trustees or alltlioMed representatives: (1) Whether acting alone or in collusion with other persons; or (2) While performing services for you or otherwise; except when covered under Insuring A ent A.1. 7 CR90tl M0 Copyright In=MW Services ofaec, file., 1998 Page 2 of I 03%23/2004 16:23 7145787486 ARMSTRONG ROBITAILLE PAGE 06/15 A s a h 0. 1. Mo 0 C, GOVernmental Action Loss resulting from seizure or destruction of property by order of governmental authority. d. Indirect Loss Loss that is an indirect result of any act or occurrence covered by this insurance including, but not limited to, loss result- ing from: (1) Your inability to realize -income that you would have realized had there been no loss of or damage to money, securities or other property. (2) Payment of damages of any type for which you are legally liable, But, we will pay compensatory damages arising directly from a loss covered under this insurance. (3) Payment of costs, fees or other ex• penes you incur in establishing ei- ther the existence or the amount of less Under this insurance. C. Legal Expenses Expenses related to any•legal action, ex- cept when covered under Insuring Agreement A.2. £ Nuclear Loss resulting from nuclear reaction, nu- clear radiation or radioactive contam- ination, or any related act or incident. g. War And Similar Actions Loss resulting from war, whether or not declared, warlike action, insurrection, re- bellion or revolution, or any related act or incident. 2, Insuring Agreement A.I. does not apply to: a. );mployee Cancelled Under Prior Insur- ance Loss caused by any employee of yours, or predecessor in interest of yours, for whom similar prior insurance has been CROO$i 3-00 COPYAChT, Inmranm Services Office, Inc., 1996 cancelled and not reinstated since the last such cancellation- b. Inventory Shortages Loss, or that part of any loss, the proof Of which as to its. existence or amount is dependent upon: (1) An inventory computation; or (2) A profit and loss computation However, where you establish wholly apart from such computations that you have sustained a loss, then you may offer Your inventory records and actual phys. ical count of inventory in support of.tho amount of loss claimed. c. Trading Loss resulting directly or indirectly from trading, whether is your name or in a genuine or fictitious account, d, Warehouse Receipts Loss resulting from fraudulent or dis- honest signing, issuing, canceling or fail- ing to cancel, a warehouse receipt or any papers connected with it. 3. Insuring'Agreements A.3., A4. and A.S. do' not apply to: a. Accounting Or Arithmetical Errors Or Omissions Loss resulting from accounting or arith- metical errors or omissions. b. Exchanges Or Purchases Loss resulting from the giving or surren- dering of property in any exchange or purchase. d. Fire: Lass resulting from fie, however caused, except: (1) Loss from damage to a safe or vault; and (2) Under Insuring Agreement A.3., loss of or damage to money and securi- ties. Page 3 of I 03/23/2004 16:23 7145787.4a6 ARMSTRONG ROBITA.TLLE PAGE 07/15 d. Money Operated Devices Loss of property contained in any money operated device unless the amount of money deposited in it is recorded by a continuous recording instrument in the device. e. Motor Vehicles Or Equipment And Ac- cessories Loss of or damage to motor vehicles, trailers or semi -trailers or equipment and accessories attached to them. £ Transfer Or Surrender Of Property (1) Loss of or damage to property after It has been transferred or surren- dered to a person or place outside the premises or banking premises: (a) On the basis of unauthorized instructions; (b) As a result of a threat to do bodily harm to any person; or (c) As a result of a threat to do damage to any property. (2) But, this Exclusion does not apply under Insuring Agreement A.S. to loss of money, securities or other property while outside the premises in the care and custody of a messen- ger if you: (a) Had no knowledge of any threat at the -time the convey. ante began; or (b) Had knowledge of a threat at the time the conveyance began, but the loss was not related to the threat. g. Vandalism Loss from damage to the premises or its exterior, or to any safe, vault, cash regis- ter, cash box, cash drawer or other property by vandalism or malicious mis- chief, h. Voluntary Parting Of Title To Or pos- session Of Property Loss resulting from your, or anyone act- ing on your express or implied authority, being induced by any dishonest act to voluntarily part with title to or pos- session of any property. 4. Insuring Agreement A.6, does not apply to: Inventory Shortages loss, or that part of any loss, the proof of which as to its eaistenec or amount is de- pendent upon: a. An inventory computation; or b. A profit and loss computation. E. Conditions The following Conditions apply in addition to the Common Policy Conditions: 1. Conditions Applicable To All lasuring Agreements a. Cancellation As To Any Employee This insurance is cancelled as to any employee: (1) Immediately upon discovery by:. (a) You; or (b) Any of your partners, members, managers, officers, directors or trustees not in collusion •with the employee; of theft or any other dishonest act committed by the employee whether before or after becoming employed by you. (2) On the date • specified in a notice mailed to the first Named Insured. That date will be at least 30 days af- ter the date of mailing, We will mail or deliver our notice to the first Named Insured's last mail- ing address known to us. If notice is mailed, proof of mailing will be suf- ficient proof of notice. CROO21 3.00 copyiiw, lii=mcc scm= office. Inc., 1999 Page 4 of 11 03/23/2004 16:23 7145787486 ARMSTRONG ROBITAI,LE PAGE 08/15 b. Concealment, Misrepresentation or also notify the 100al law enforcement Fraud authorities. .This insurance is void in any case of fraud by you as it relates to ibis insurance at any time. It is also void if you or any other Insured, at any time, intentionally conceal or misrepresent a material fact concerning: . (2) Submit to examination under oath at our request and give us a signed statement of your answers. (3) Give us a detailed, sworn proof of loss within 120 days, (1) This insurance; (4) Cooperate with us in the invcsti- (2) The property covered under this in. gation and settlement of any claiin, surance; e. Employee Benefit Plan(s) (3) "'bur interest in the property cov- (1) The employee benefit plan(s) shown ered under this insurance; or in the Declarations are included as 4 () A claim under this insurance. -Insureds under Insuring Agreement A.1_ e. Consolidation - Merger • (2) If any employee hencfit plans) Is in - If through consolidation or merger with, cured jointly witIl any 'other entity or purchase or acquisition of assets or If- under this insurance, you or the abilities of, some other entity, any addi-, Plan 'Administrator must select a tional persons become etriploye as or you Limit of Insurance for Insuring acquire the use and control of any addi- Agreement A.I. that is sufficient to tional premises: provide a Limit ' of Insurance for 'each Plan that is at !cast equal to (1) You must give us written notice and that required if each, Plan were sep- obtain our written consent to extend arately insured. this insurance to, such additional employees or premises, We may (3) With respect to losses sustained or condition our consent upon pay- discovered by any such Plan, Insur- ment of an additional premium; but ing Agreement A.1, is replaced by the following: , (2) For the first 90 days after the effec• , tive date of such consolidation, We will pay for loss of or damage to merger or purchase or acquisition of fonds and other property resulting assets or liabilities, any insurance af. directly from fraudulent or dishonest forded for employees or premises acts committed by an employee, also applies to these additional cut- • whether identified or not, acting ployets or premises for acts commit- alone or in collusion with other ted or events occurring within this persons. 90 day period, • (4) 1f the first Namcd Insured is an en- d. Duties In The Event of Loss tity other than a Plan, any payment we make to that Insured for loss After you discover a loss or a situation sustained by any Plan will be held that may result in loss of or damage to by that Insured for the use and ben - money, securities or other property you efit of the Plan(s) sustaining the loss. must: (I) Notify us as soon as possible. If you (5) If two or more Plans are insured under this insurance, have reason to believe that any loss any payment we make for loss: (except for loss covered under. In- suring Agreements A. 1. or A.2.) in- (a) Sustained by two or, more volvcs a violation of law, you must Plans; or . CI10021 3-00 Copyright, Imurmoc sg,vices ortoe Inc., 19911 Page 5 of I I 03/23/2004 16:23 7145787486 ARMSTRONG ROBITAILLE ) PAGE 09/15 (b) Of commingled funds or other property of two or more Plans; that arises out of one occurrence, is to be shared by each Plan sustaining loss in the proportion that the Limit of Insurance required for each Plan bears to the total of those limits. (6) The Deductible Amount applicable to Insuring Agreement A.I. does not apply to loss sustained by any em- ployee benefit plan(s). f. Extended Period To Discover Loss (1) We will pay for loss that you sus. tained prior to the effective date of termination or cancellation of this insurance, which is discovered by you no later than 1 year from the date of that termination or cancella- tion. (2) However, this extended period to discover loss terminates immediately upon the effective date of any other insurance obtained by you replacing in whole or in part the insurance af- forded hereunder, whether or not such other insurance provides cov- erage for loss sustained prior to its effective date. g. Joint (1) If more than one Insured is named this insurance, If the first Named uresn�d- ceases to be covered, then the next Named Insured will become the first Named Insured. (2) If auy Insured, or partner, member or officer of that Insured has know- ledge of any information relevant to this insutance, that knowledge is considered. knowledge of every In- sured. (3) An employee of any Insured is con- sidered to be an employee of every Insured. (4) If this insurance or any of its cover- ages is cancelled or terminated as to any Insured, loss sustained by that Insured is covered only if discovered by you during the period of time Provided in the $)tended Period To Discover Loss Condition E.1.f. However, this extended period to discover loss terminates as to that Insured immediately upon the effec- tive date of any other insurance ob- tained by that Insured replacing in whole or in part the insurance af- forded hereunder, whether or not such other insurance provides caw crap for loss sustained prior to its effective date. (5) We will not pay more for loss sus- tained by more than one Insured than the amount we would pay if all the loss bad been sustained by one Insured. h. Legal Action Against Us You may not bring any legal action against us involving loss: (1) Unless you have complied with all the terms of this insurance; (2) Until 90 days after you have filed proof of loss with us; and (3) Unless brought within 2 years from the date you discover the loss. If any limitation is prohibited by law, such limitation is amended so as to equal the minimum period of limitation pro- vided by such law. i. Uberalizatiou If we adopt any revision that would broaden the coverage under this insur- ance without additional premium within 45 days prior to or during the policy pe- riod, the broadened coverage will imme- diately apply to this insurance. Ca0021 3.00 Copyright, I=rono Saviem Office, Inc., 1998 Page 6 of 11 ,03/23/2ee4 16:23 7145767a@6 ) ARMSTRONG ROBITAT�LE F PAGE 10/15 Loss Covered Under More Than One Coverage Of This Insurance If two or more coverages of this insur- ance apply to the same loss, we will, pay the lesser of, (1) The actual amount of loss; or . (2) The sum of the Limits of Insurance . applicable to those coverages. k. Loss Covered Under This Insurance And Prior Insurance, Issued By 'Us Or Any Affiliate If any loss is covered: (1) Partly by this insurance; and (2) Partly by any prior cancelled or ter• minated insurance that -we or any affiliate had issued to you or any predecessor in interest; the most we will pay is the larger of the amount recoverable under this insurance or the prior insurance. Regardless of the number of years this insurance remains in force or the number of premiums paid, no Limit of Insurance cumulates from year to year or policy period to policy period. 1. Loss Sustained Subject to the boss Sustained During Prior Insurance Condition E.i.m., we Will pay for loss that you sustain through acts committed or events occurring dur- ing the policy period shown in the Dec- larations and discovered by you: (1) During the policy period; or (2) During the period of time provided in the Extended Period To Discover Loss Condition E, I.f. m. Loss Sustained During Prior Insurance (1) If you, or any predecessor in inter- esi, sustained loss during the'period Of any prior insurance that you or the predecessor in interest could have recovered under that insurance except that the time within which to discover loss had expired, we will pay for it under this insurance, pro- vided: (a) This insurance became effective at the time of cancellation or termination of the prior insur- ance; and (b) The loss would have been cov- etied by this insurance had it been in elrect when the acts or events 'causing the loss were committed or occurred. (2) The insurance under this Condition is part of, not in addition to, the Limits of•lasurance applying to•tbis insurance and is limited to the lesser of the amount recoverable under: (a) This insurance as of its effective date; or (b) The prior insurance had it re- maincd in effect. n. Other Insurance This insurance does not apply to loss, rc- eoverable or recovered under other in. surance or indemnity. If the limit of the other insurance or indemnity is insuiia- cient to cover the entire amount of the loss, this insurance will apply to that part of the loss, other than that falling within any Deductible Amount, not recoverable or recovered under the other insurance or indemnity. However, this insurance Will not apply to the amount of loss that is more than the applicable Limit of Insurance shown in the Declarations. o. Ownership Of Property; Interests Cov- ered • The. property covered under this insur- ance is limited to property: (1) That you own or lease; (2) That you hold for others; or (3) For which you are legally liable, ex- cept for property inside the premises of a client of yours. CPM21 3.00 Copyright, Inow•snee Serdees Olacc, Inc., 1996 Page 7 of 11 0 0 03/23/2004 16:23 7145787486 ARMSTRONG ROBITA;LLE , PAGE 11/15 However, this insurance is for your bcn- which we have paid or settled. You must efit only. It provides no rights or benefits also do everything necessary to secure to any other person or organization, those rights and do nothing after loss to Any claim for loss that is covered under impair them, this insurance must be presented by you. p. Records t, Valuation - Settlement You must keeprecords of all property p p�•y (1) Subject to section B. Limit Of In- covered under this insurance so we cau surance, we will pay for. verify the amount of any loss. (a) Loss of money but only up to q. Recoveries and including its face value. We may, at our option, pay for 1 () Any recoveries, less the cost of ob-ent loss o£ money issued by any taming them, made after settlement country other than, the United of loss covered by this insurance will States of America: be distributed as follows: (i) At face valve in the money (a) To you, until you are xeim- issued by that country; or bursed for any loss that you (ii) In the United States of sustain that exceeds the Limit America dollar equivalent of Insurance and the Deductible determined by the rate of Amount, if any; exchange on the day the (b) Then to us; until we are reim- Ions was discovered. bursed for the settlement made; (b) Loss of securities but only up and to and including their value at (c) Then to you, until you are re- the close of business on the day imbursed for that part of the the loss was discovered. We loss equal to the Deductible may, at our option: Amount, if any. (i) Pay the value of such se'- (2) Recoveries do not include any re- curities or replace them in covery: kind, in which event you must assign to us all your (a) From insurance, suretyship, re- rights, title and interest in insurance, security or indemnity and to those securities; or taken for our benefit; or (n) Pay the any Lost (b) Of original securities after du- not required in plicates of them have been is- with issuing sued, duplicates of the securities. Terrtory However, we will be liable only for the payment of s6 This insurance covers acts committed or much of the cost of the events occutsing within the United States bond as would be charged of America (including its territories and for a bond having a penalty possessions), Puerto Rico and Canada, not exceeding the lesser of the: s. Transfer Of Your Rights Of Recovery Against Others To Us i. Value of the securities at the close of busi- You must transfer to us all your rights Hess on .the day the of recovery against any person or organ- loss was discovered; ization for any loss you sustained and for or CRMI s•oo coPr+'itht, tans a Services oalrn, rnb„ 1998 Page 8 of 11 03/23/2004 16:23 7145787486 ARMSTRONG ROBITATLLE PAGE 12/15 ii. Limit of Insurance. (c) 'Loss of or damage to other property or loss from damage to the premises or its exterior for the replacement cost of the property without deduction for depreciation. However, we will not pay more than the least of The following: (i) The Limit of Insurance applicable to the lost or damaged property; (ii) The cost to replace the Iost or damaged property with property of comparable material and quality and used for the same purpose; or (iii) The amount you actually spend that is necessary to repair or replace the lost or damaged property. We will not pay on a replace- ment cost basis for any loss or damage: (i) Until the lost or damaged property is' actually re- paired or replaced; and (ii) ,Unless the repairs or re- placement are made as soon as reasonably possi- ble after the loss or dam- age. If the lost or damaged property is not repaired or replaced, we will pay on an actual cash value basis. (2) We may, at our option, pay for loss of or damage to property other than o a money: g(a) In the honey of the country in Which the loss occurred; or (b) In the United States of America dollar equivalent of the money u of the country in which the loss ocov>Tjolt CROON 3,00 lnwrwce services office, Inc., 1999 S occurred determined by the rate of exchange on the day the loss was discovered, (3)• Any property that we pay for or re- place becomes our property, 2- Condition Applicable To Insuring Agreement A.1. Territory We will pay for loss caused by any employee while temporarily outside the territory speci- fied in the Territory Condition ) .l.r. for a period of not more than 90 days. 3. Conditions Applicable- To Insuring Agree. ment A.2. a. Deductible The Deductible Amount does not apply to legal expenses paid under Insuring Agreement A.2. b. Facsimile Signatures We will treat mechanically reproduced facsimile signatures the same as hand- written signatures. c. Proof Of Loss You must include with your proof of loss any instrument involved in that loss, br, if that is not possible, an affidavit setting forth the amount and cause of loss. d. Territory We will cover loss you sustain anywhere . in the world. The Territory Condition G.l.r, does not apply to Insuring Agree- ment A•2. 4. Conditions Applicable To Insuring Agree- ments A.4. And A.5. a. Amtorcd Motor Vehicle Companies Under Insuring Agreement A.5., we will only pay for the amount of loss you cannot recover: (1) Under your contract with the i mored motor vehicle company; and Page 9 of 11 .e3/23/2oe4 16:23 71457876.q6 ARMSTRONG ROBITArLLE PAGE 13/15 (2) From any insurance or indemnity carried by, or for the benefit of cus- tomers of, the armored motor vehi- cle company. b. Special Limit Of Insurance For Specified Property We will only pay up to $5,000 for any one occurrence of loss of or damage to: (1) Precious metals, precious or scini- precious stories, pearls, furs, or completed or partially completed articles made of or containing such materials that constitute the princi- pal value of such articles; or (2) Manuscripts, drawings, or records of any kind or the cost of recon- structing them or reproducing any information contained in them. 5. Conditions Applicable To Iwurlug Agree- ment A,6. a. Special Limit 0£ Insurance Por Specified Property We will only pay up to $5,000 for any one occurrence of loss of or damage to manuscripts, drawings, or records of any kind or the cost of reconstructing them or reproducing any •information con- tained in them. b. Territory We will cover loss you sustain anywhere in the world. The Territory Condition E.l.r. does not apply to Insuring Agree- ment A.6. P. Defruitions I. Banking premises means the interior of that portion of any building occupied by a banking institution or similar safe depository. 2. Client means any entity for whom you per- form services under a written agreement. 3. Counterfeit means an imitation of an actual valid original which is intended to deceive and to be taken as the original. 4. Custodian means you, or any of your partners or members, or any employee while having care and custody of property inside the premises, excluding any person while acting as a watcllperson or janitor. 5. Employee: a. Employee means: (1) Any natural person: (a) While in your service or for 30 days after termination of sec vice; (b) Who you compensate directly by salary, wages or commis- sions; and (c) Who you have the right to di- rect and control while perform- ing services for you; (2) Any natural person who is furnished temporarily to you: (a) To substitute for a permanent employee as defined in Para. graph (1) above, who is on leave; or (b) To meet seasonal or short-term work load conditions; while that person is subject to your direction and control and perform- ing services for you, 'excluding, however, any • such person while having care and custody of property outside the premises; or (3) Any natural person who is: (a) A, trustee, otliicer, employee, administrator or manager, ex- cept an administrator or man- ager who is an independent contractor, of any employee benefit plau(s) insured under this insurance; and (b) Your director or trustee while that person is handling funds or other property of any cm. ployee benefit plan(s) insured under this insurance. b. Employee does not mean: (1) Any agent, broker, person leased to you by a labor leasing final factor, commission merchant, consignee, CM0021 8.00 Copyrish7 insurance Sonicts OMM, Ingo 1998 Page 10 of 11 03723/2004 16:23 7145787,g10,6 ARMSTRONG ROBITAILLE PAGE 14/15 independent contractor or represen- (1) An act or series of related acts in- tative of the same general character•, volving one or more persons; or or (2) Any mannger, director or. trustee except while performing acts coming within the scope of the usual duties of an employee. 6. Employee benefit plan(s) means -any welfare or pension benefit plan shown in the Dccla- rations that is subject to theEmployee Re- tirement • Income Security Act of 1974 (LRISA). 7. Forgery means the signing * of the name • of another person or organization with intent to deceive; it does not mean a signature which' consists in whole Or in partof one's own name signed with or without authority, in any capacity, for any purpose. 8. Funds means money and securides, 9• Manager means a person sciving in a direc- torial capacity for a limited liability company. 10.. Member means an owner of a limited liability. corripany represented by its membership in- terest, who also may serve as a manager. 11. Messenger means you, or a relative of yours, or any of your partners or members, or any employee while having care and custody of property outside the premises. 12. Money means: a. Currency, wins and bank notes in cur. rent use and having a face value; and b. Travelers checks, register checks and money orders held for sale to the public. 13. Occurrence means: a. As respects Insuring Agreement A.1., all loss caused by, or involving, one or more employees, whether the result of a single act or series of acts. b. As respects Insuring Agreement A.2., all loss caused by any person or in which that person'is involved, whether the loss involves one or more instruments. c. As respects all other Insuring Agtee- merits: (2) An act or event, or a series of related acts or events not involving any person. 14. Other property means any tangible property other than money and securities that has in- trinsic value but does not include any prop- erty excluded under this insurance. 15. Premises means tbe' interior of that portion of any building you occupy in 'conducting your business. 16. Robbery means the unlawful taking of prop- erty from the care and custody of a person by one who has: a. Caused or threatened to cause that per-' son bodily harm; or b. Committed an obviously unlawful act witnessed by that person. 17. Safe burglary means the unlawful taking of: a. property from within a locked safe' or vault by a person unlawfully entering the safe or vault as evidenced by marks of forcible entry upon its exterior; or b. A safe or vault from inside the premises. 18. Securities means negotiable and nonnegoti- able instruments or contracts representing ei- ther money or property and includes: a. Tokens, tickets, revenue and other stamps -(whether represonfed by actual stamps or unused value in'a meter) in current use; and b. ividences of debt issued in connection with credit or charge cards, which cards are not issued by you; but does not include money. 19. Theft means the unlawful taking of mancy, securities, or other property to the deprivation of the Insured. 20. Wateltperion means any person you retain specifically to have care and custody of prop- erty inside the premises and who has no other duties. C10021 3-0e Copyright, In=4aco ser4c" o(fce. Inc., 1999 page 11 of I .103/23/2004 16:23 71457874 G ARMSTRONG ROBITp.�LLE PAGE 15/15 } California Changes - Escrow Agent - CR 0150 03 00 Policy Amendment(s) Commercial Crime Coverage This eudom ntent modifies insurance provided under the following: Commercial Crime Coverage Form Commercial Crime Policy Employee Theft and Forgery Policy A. The following is added to Section F. Definitions: 1. Employee also includes any: a. Officer, director or cuipioyee of yours who is not compensated when perform- ing ads coming within the scope of the usual duties of an officer or employee of yours; and employee shall not be a defense to any suit, action or other legal proceeding against us. B. The following is added to the Cancellation Of Policy Condition: b. Member of any of your committees duly elected or appointed to examine or audit or have custody of your property. C. The ownership of all or a portion of the shares of the Named insured by any Notice of Cancellation No cancellation of this policy, whether at your re- quest or our request, shall take effect prior to the expiration of 30 days after written notice of such cancellation has been filed with the Commissioner of Corporations. Exclusion D.I.a. Acts Committed By You, Your Partners Or Your Members is deletod if you are licensed as an escrow agent'by the Commissioner Of Corporations of the State of California. This Form must be attached to Change Endorsement when issued after the policy is written. One of the Fireman'* Fund tmurauce Comp,mies as named in the policy 6 etary President Ck0150 3.00 CA Copyrigm, Insurance Sayres Office, Inca 1959 .93/23/2004 16:23 7145787,186 ARMSTRONG ROBITA)�.LE PAGE 01/15 TO: FROM: FAX COVER SKEET ARMSTRONG/ROBITAILLE INSURANCE SERVICES P.O. Box 34009 a Fullerton, CA 92834-9409 (714) 578-7290 • Fax (714) 626-7573 Email: svanauker@arinsurance.com Evelyn Tseng—City of NPB VATE: 3/23/04 STEVE VAN AVKER. CPCU,CLU FAX: 949-644-3073 RE: Marinapark--Crime coverage for Bendetti Managemeut Co. Dear Evelyn, Here are the pages for the Crime coverages on above. If you have any questions, please get back to me. 8 ncerelyr, f In �-- eve Van Auker TOTAL NO. OF PAGES (including this cover page): 15 If you did not receive all of the pages, please call sender as soon as possible. Email at: svanaukerna,arinsurance.com CONFIDENTIALITY NOTICE... This facsimile transmission may contain confidential information whioh Is intended only for the use of the person(s) named above. If you are not the intended recipient, you are hereby advised that any disclosure, copying, distribution or the taking of any action in reliunce on the contorts of this Information is prohibited. rf you have received this transmission in error, please notify us to arrange for the return of the documents. aVa�fWatadaa0lran+.wL•valoltc .WctO%•due ■ Complete items 1, 2, and 3. Also complete Item 4 If Restricted Delivery Is desired. ■ Print your name and address on the reverse so that we can return the card to you. ■ Attach this card to the back of the malipiece, or on the front If space permits. 1. Arllcie Addressed to: MR. Pt-TCC 61ai.ov 1-770 N. g—Iboa &I'Icl . U"—'OA Nc P� l3ro d . Gl clzUu3 A. Signature I X ❑ Agent I Addressee B. Received by (Printed Name) C. Date of Delivery I D. Is delivery address driferent fmm item l? ❑Yes If YES, enter delivery address below: ❑No 3. Ice Type ei ertified Mall ❑ Express Mall ❑ Registered ❑ Return Receipt for Merchandise ❑ Insured Mail ❑ C.O.D. t 4. Restricted Delivery? (Extra Fee) ❑ Yes 2. Article Number 1- oninsterfrom service iabeq 7001D320 0000 7828 9658 PS Form 3811, February 2004 Domestic Return Receipt 102595-02-M-1540 UNITED STATES POSTAL. SERVICE First -Class Mail Postage & Fees Paid USPS Permit No. G-10 • Sender., Please print your name, address, and ZIP+4 In this box • &at-yN 7seN cr RC✓t -7"Midi 330 i, N-CT- 8wd ra�pc� &rac)j. CA aZ Clry or 1404Pafr 8EAC: CITY OF NEWPORT BEACH ADMINISTRATIVE SERVICES Revenue Division August 7, 2008 VIA CERTIFIED U.S. MAIL AND FIRST CLASS U.S. MAIL Peter Balov 1770 W Balboa Blvd., Unit 10 A Newport Beach, CA Ernest J. Francceschi, Jr. 445 S Figueroa, 26th Floor Los Angeles, CA 90071 RE: NOTICE OF PAST DUE RENT MARINAPARK MOBILEHOME PARK, UNIT 10A Dear Mr. Balov: Pursuant to the terms of the Mobile Home Rental Agreement dated January 1, 2008, and the terms of the Settlement Agreement and Consent Judgment filed with the United States District Court dated. April 11, 2008, the rental amount of $1,240.00 is due each month on the 1st day of the month. Late payments shall be charged ten percent (10%) interest per month. Additionally, Lessee shall pay $22.00 per month for gas, also due on the 15t day of the month, for a total of $1,262.00.. Upon the closing of escrow on June 17, 2008, the final settlement statement of which is attached for your reference, rent was collected through June and the next payment was due July 1, 2008. As of the date of this letter, the City has not yet received payment and the account is now. past due for the July and August rent payments. The total rent, gas and fate fees due on the account is .$2,660.20. Please make arrangements to pay this amount by Tuesday, August 19th,' 2008, or the City will be forced to take further action to enforce the terms of the Settlement Agreement and Consent Judgment. Payments must be made by cash or check, payable to The City of Newport Beach and delivered to: The City of Newport Beach Cashier at 3300 Newport Blvd., Newport Beach, CA 92658-8915, Phone (949) 644-3121. The Cashier is available to receive -payment Monday through Friday, between the hours of7:30 a.m. and 5:00 p.m. 3300 Newport Boulevard'. Post Office Box 1768 • Newport Beach, California 92658-8915 Telephone: (949) 644-3141 • Fax: (949) 644-3073 • www.city.newport-beach.ca.us Peter Balov August 5, 2008 Page 2 Thank you for your immediate attention to this matter. If you would like to discuss these issues or schedule a meeting, please do not hesitate to contact me. Very truly yours, Evelyn Tseng, Income Contract Administrator City of Newport Beach Enclosure cc: Glen Everroad Bill Mecham 1770 W. Balboa Blvd., Space 10A Newport Beach, CA 92663 City of Newport Beach P. O. Box 1768 Newport Beach, CA 92658 Peter Balov do Ernest J. Franceschi, Jr. 445 S. Figueroa St. 26th Floor Los Angeles, CA 90071 Overland, Pacific & Cutler, Inc. 100 W. BroadMy, Ste 600, Long Beach, CA 90002 Seller's Final Settlement Statement File No: NPBO02-10A Coordinator: Natass Lenic Settlement Date: 06/17/2008 Disbursement Date: 06/17/2008 Charge Description Seller Charge Seller Credit Consideration $35,000.00 Pad rent: September 1, 2007-June 30, 2008 @ $1,262/month $12.620.00 HCD fee - replacement insignia $166.00 HCD fee - registration renewal $547.00 HCD fee - sales tax from transfer from Weinfurtner to Balov $645.00 Bond fee Cash to Seller Totals $265.00 $20,757.00 $35,000.00 $35,000.00 CITY HALL REVENUE DIVISION 3300 Newport Boulevard P.O. Box 1768 Newport Beach, California 92658-8915 � RETURN SERVICE REQUESTED UNCLAIMED 7001 0320 0000 7828 9658 1 1 Mr. Peter Balov- 1770 W Balboa Blvd., Unit 10 A Newport Beach, CA 92663