In re

UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE
Chapter 11
Case No. 09-
ELECTROGLAS, INC., et al.,
1
)
)
)
)
)
(Joint Administration Pending)
Debtors.
MOTION OF THE DEBTORS FOR AN ORDER AUTHORIZING
THE DEBTORS TO (I) CONTINUE ALL INSURANCE POLICIES AND
RELATED AGREEMENTS AND (II) HONOR RELATED OBLIGATIONS
The above-captioned debtors and debtors-in-possession (the "Debtors") hereby
respectfully move (the "Motion") for the entry of an order (the "Order")
2
pursuant to sections
105(a) and 363(b) ofTitle 11 ofthe United States Code (as awarded, the "Bankruptcy Code") to:
(a) maintain and continue to make all postpetition payments (including postpetition fees and
premiums) with respect to the Insurance Policies (as defined below) on an uninterrupted basis;
(b) maintain and continue on an uninterrupted basis the Debtors' prepetition practices with
respect to each policy or contract; (c) pay any prepetition premiums related to the Insurance
Policies to the extent that the Debtors determine, in their sole discretion, that such payment is
necessary to avoid cancellation, default, alteration, assignment, attachment, lapse or any form
of impairment to the coverage, benefits or proceeds provided under the Insurance Policies; and
(d) enter into new policies or bonds or assume existing policies or bonds in the ordinary course
of business pursuant to sections 1 OS( a) and 363(b) of the Bankruptcy Code. In support of the
Motion, the Debtors respectfully represent as follows:
1
The Debtors are Electroglas, Inc. (EIN 77-0336101) and Electroglas International, Inc. (EIN 77-0345011).
2
The proposed fonn of Order is attached to this Motion as Exhibit A.
#!1123803 v2
In re
UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
Chapter 11
ELECTROGLAS, INC., et al.,
1
)
)
)
)
)
)
Case No. 09- (__)
(Joint Administration Pending)
Debtors.
MOTION OF THE DEBTORS FOR AN ORDER AUTHORIZING
THE DEBTORS TO (I) CONTINUE ALL INSURANCE POLICIES AND
RELATED AGREEMENTS AND (II) HONOR RELATED OBLIGATIONS
The above-captioned debtors and debtors-in-possession (the "Debtors") hereby
respectfully move (the "Motion") for the entry of an order (the "Order")
2
pursuant to sections
105(a) and 363(b) of Title 11 ofthe United States Code (as awarded, the "Bankruptcy Code") to:
(a) maintain and continue to make all postpetition payments (including postpetition fees and
premiums) with respect to the Insurance Policies (as defined below) on an uninterrupted basis;
(b) maintain and continue on an uninterrupted basis the Debtors' prepetition practices with
respect to each policy or contract; (c) pay any prepetition premiums related to the Insurance
Policies to the extent that the Debtors determine, in their sole discretion, that such payment is
necessary to avoid cancellation, default, alteration, assignment, attachment, lapse or any form
of impairment to the coverage, benefits or proceeds provided under the Insurance Policies; and
(d) enter into new policies or bonds or assume existing policies or bonds in the ordinary course
of business pursuant to sections 105(a) and 363(b) of the Bankruptcy Code. In support ofthe
Motion, the Debtors respectfully represent as follows:
1
The Debtors are Electroglas, Inc. (EIN 77-0336101) and Electroglas International, Inc. (EIN 77-0345011).
2
The proposed fonn of Order is attached to this Motion as Exhibit A.
#11123803 v2
Jurisdiction, Venue & Statutory Predicate
1. The Bankruptcy Court has jurisdiction over this matter pursuant to 28 U.S.C.
1334(b). Venue is proper pursuant to 28 U.S.C. 1408 and 1409. This matter is a core
proceeding within the meaning of28 U.S.C. 157(b)(2).
2. The statutory predicates for the relief requested in this Motion are sections 1 05(a)
and 363(b) ofthe Bankruptcy Code.
Background
3. On the date hereof, the Debtors each filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code. The Debtors continue to operate their businesses and
manage their properties as debtors-in-possession pursuant to sections 11 07(a) and 1108 of the
Bankruptcy Code.
4. No creditors' committee has yet been appointed in these cases. No trustee or
examiner has been appointed.
5. The Debtors supply semiconductor manufacturing test equipment and software to
the global semiconductor industry, and have been in the semiconductor equipment business for
more than 40 years. The Debtors' installed customer base is one of the largest in the industry, as
the Debtors have sold to date more than 16,500 units of one of their core products, the "wafer
prober" (and its related operating system). The Debtors' other major source of revenue comes
from their business of designing, manufacturing, selling and supporting motion control systems
for advanced technologies.
6. A full description of the Debtors' business operations, corporate structures, capital
structures, and reasons for commencing these cases is set forth in full detail in the Affidavit of
Thomas Brunton in Support of Chapter 11 Petitions and First Day Relief, which was filed
#lll23803 v2
2
contemporaneously herewith and which is respectfully incorporated in this Motion by reference.
Additional facts in support of the specific relief sought in this Motion are set forth below.
Relief Requested
7. Pursuant to sections 105(a) and 363(b) ofthe Bankruptcy Code, the Debtors
request authority to: (a) maintain and continue to make all postpetition payments (including
postpetition fees and premiums) with respect to the Insurance Policies on an uninterrupted basis;
(b) maintain and continue on an uninterrupted basis the Debtors' prepetition practices with
respect to each policy or contract; (c) pay any prepetition premiums related to the Insurance
Policies to the extent that the Debtors determine, in their discretion, that such payment is
necessary to avoid cancellation, default, alteration, assignment, attachment, lapse or any form of
impairment to the coverage, benefits or proceeds provided under the Insurance Policies; and
(d) enter into new policies or bonds or assume existing policies or bonds in the ordinary course
of business.
8. In connection with the operation of their businesses, the Debtors maintain
insurance policies (collectively, the "Insurance Policies") through several different insurance
carriers (collectively, the "Insurance Carriers"), which provide coverage for, among other things,
global property, global general liability umbrella, marine cargo, workers compensation,
directors' and officers' liability, crime and fiduciary liability, employers' liability, automobile
liability, electronic data processing, public liability, dental and medical, life or accident and
health. A detailed list of the Debtors' Insurance Policies is attached to this Motion as Exhibit B,
#11123803 v2
3
and it includes the Insurance Carriers, the annual premiums and the expiration dates for each
Insurance Policy.
3
9. The Insurance Policies are critical to the preservation of the Debtors' properties
and assets because, if the Insurance Policies are allowed to lapse without renewal, the Debtors
could be exposed to substantial liability, which could materially affect the Debtors' ability to
complete the sale of all or substantially all assets, reorganize, or liquidate. In many cases, the
insurance coverage is required by regulation, law or contracts that govern the Debtors' business
conduct. Since the Insurance Policies are essential to the Debtors' businesses, it is in the best
interests of the Debtors' estates to permit the Debtors, in their sole discretion, to honor their
obligations under the current insurance contracts.
A. Authority to Pay Insurance Policy Premiums
10. The Debtors seek authorization to pay any prepetition premiums related to the
Insurance Policies to the extent that the Debtors determine, in their sole discretion, that such
payment is necessary to avoid cancellation, default, alteration, assignment, attachment, lapse or
any form of impairment to the coverage, benefits or proceeds provided under the Insurance
Policies.
4
The Debtors are not currently in default on any premium obligations at this time and
seek this authority out of an abundance of caution, in recognition of the critical necessity of
keeping their insurance policies current, and out of concern that, should the Debtors have to
3
The Debtors have made a good-faith effort to identity all of the Debtors' Insurance Policies on Exhibit B. To the
extent that the Debtors identity additional Insurance Policies not listed on the Debtors seek the authority
to continue such Insurance Policies uninterrupted and pay, in the Debtors' discretion, the related insurance
obligations. Upon identifYing Insurance Policies not listed on Exhibit B, the Debtors will promptly file an
amendment to Exhibit Band serve a copy of this Motion and any order approving this Motion on the appropriate
Insurance Carrier. The Debtors request that the order approving this Motion be binding on all Insurance Carriers
and Insurance Policies.
4
The Debtors do not believe that any insurance premiums that became due pre-petition remain unpaid. To the
extent Debtors discover any premium obligations that would constitute a pre-petition claim(s), however, Debtors
request authority to pay same in the ordinary course of business.
#11123803 v2
4
make this type of payment in the future, the passage of time while the Debtors seek and obtain
the Bankruptcy Court's authority for such a payment may have irreversible adverse
consequences for the Debtors' coverage under the Insurance Policies. For instance, a
catastrophic loss during an avoidable lapse in insurance coverage could deplete already limited
estate resources and potentially threaten any proposed sale of assets or prospects for
reorganization, or, in any event, reduce recovery to creditors.
11. Paying the premiums due under the Insurance Policies in the ordinary course of
business will ensure that: (a) the coverage under the Insurance Policies is not interrupted; and
(b) the Debtors are not forced to procure hastily-arranged replacement insurance coverage on
less favorable terms and conditions. Any interruption in insurance coverage would expose the
Debtors to serious risks, including: (v) the possible incurrence of direct liability for the payment
of claims that otherwise would have been payable by the insurance carrier under the Insurance
Policies; (w) the possible incurrence of material costs and other losses that otherwise would have
been reimbursed by the Insurance Carrier under the Insurance Policies; (x) the possible loss of
good-standing certification to conduct business in states that require the Debtors to maintain
certain types and levels of insurance coverage; (y) the possible inability to obtain similar types
and levels of insurance coverage; and (z) the possible incurrence of higher costs for re-
establishing lapsed policies or obtaining new insurance coverage.
B. Authority to Pay Workers' Compensation Deductibles
12. The Debtors are required to maintain workers' compensation liability insurance
under the laws of the states where the Debtors operate. The Debtors have purchased workers'
compensation policies (the "Workers' Compensation Policies"), which are issued by St. Paul
#11123803 v2
5
Fire and Marine and carry estimated annual premiums of approximately $19,873.00. The term of
the Workers' Compensation Policies is one-year and expires on June 1, 2010.
C. Authority to Enter into Additional Insurance Policies
13. Finally, the Debtors seek authority to renew their Insurance Policies or enter into
new Insurance Policies on competitive terms without further Bankruptcy Court approval. These
policies renew at different times throughout the year and the premiums and other amounts due
under them are paid on varying dates as well. This is because the Debtors did not procure the
coverage all at once, and because they pay some of the premiums annually and others monthly.
Unless the Bankruptcy Court grants the authority requested in this Motion, the Debtors may not
be able to renew the Insurance Policies on time and could be forced to pay higher rates or
unnecessarily expend limited estate resources to acquire a new provider. Furthermore, the
Insurance Policies have different renewal rates, which means that without having the relief
requested in this Motion, the Debtors would be forced to appear in the Bankruptcy Court
continuously to renew their Insurance Policies-a procedure that would impose an extraordinary
and unnecessary burden on the Debtors' estates and upon restructuring or sale efforts.
14. The Debtors need to continue their Insurance Policies throughout the duration of
these chapter 11 cases, because the discontinuation of the Insurance Policies could frustrate the
ability of the Debtors to complete a sale of all or substantially all assets, reorganize, or liquidate.
The negotiation and renewal of, and the payment of premiums under, these Insurance Policies
falls squarely within the ordinary course of the Debtors' businesses and, but for the constraints of
section 363 of the Bankruptcy Code, the Debtors would not need the Bankruptcy Court's prior
approval to enter into insurance policies. To reduce the administrative burden of these chapter
11 cases, as well as the expense of operating as debtors in possession, the Debtors seek the
lilll23803v2
6
Bankruptcy Court's authority to renew their Insurance Policies or enter into new Insurance
Policies in their sole discretion.
Basis for Relief
15. Section 363(b)(1) ofthe Bankruptcy Code provides that "[t]he trustee, after notice
and a hearing, may use, sell, or lease, other than in the ordinary course of business, property of
the estate .... " 11 U.S.C. 363(b)(l). Section 105(a) of the Bankruptcy Code provides:
The court may issue any order, process, or judgment that is
necessary or appropriate to carry out the provisions of this title.
No provision of this title providing for the raising of an issue by a
party in interest shall be construed to preclude the court from, sua
sponte, taking any action or making any determination necessary
or appropriate to enforce or implement court orders or rules, or to
prevent an abuse of process.
11 U.S.C. 105(a).
16. Section 105(a) ofthe Bankruptcy Code gives bankruptcy courts broad authority
and discretion to enforce the provisions of the Bankruptcy Code either under specific statutory
authority or under equitable common law principles. In re Ionosphere Clubs, Inc., 98 B.R. 174,
175 (Bankr. S.D.N.Y. 1989) ("The ability of a Bankruptcy Court to authorize the payment of
pre-petition debt when such payment is needed to facilitate the rehabilitation of the debtor is not
a novel concept."). This equitable common law principle "was first articulated by the United
States Supreme Court in Miltenberger v. Logansport, 106 U.S. 286 (1882) and is commonly
referred to as either the 'doctrine of necessity' or the 'necessity of payment' rule." In re
Ionosphere Clubs. Inc., 98 B.R. at 175-76; see also In re Just For Feel, Inc., 242 B.R. 821,
825-26 (D. Del. 1999) (recognizing a court's power to authorize the payment ofprepetition
claims when such payment is "necessary for the Debtor's survival during Chapter 11 ").
17. A bankruptcy court may exercise its equitable power to authorize a debtor to pay
critical prepetition claims, even though that type of payment is not explicitly authorized under
1111123803 v2
7
the Bankruptcy Code, under the doctrine of necessity. See In re The Columbia Gas Sys., Inc.,
136 B.R. 930, 939 (Bankr. D. Del. 1992) (recognizing that where payment of a claim is essential
to the continued operation of the debtor, payment of such claim may be authorized).
18. Here, maintaining continued and uninterrupted insurance coverage under the
favorable terms and conditions provided by the Insurance Policies is in the best interests of the
Debtors, their estate and their creditors because, as described above, the failure to do so could
impact the Debtors' ability to complete a sale of all or substantially all assets, liquidate, or
reorganize.
5
As such, maintaining the coverage requests a sound exercise of the Debtors'
business judgment. Accordingly, the Debtors seek authority to: (a) maintain and continue to
make all postpetition payments (including postpetition fees and premiums) with respect to the
Insurance Policies on an uninterrupted basis; (b) to maintain and continue on an uninterrupted
basis the Debtors' prepetition practices with respect to each policy or contract; (c) pay any
prepetition premiums and deductibles related to the Insurance Policies to the extent that the
Debtors determine, in their discretion, that such payment is necessary to avoid cancellation,
default, alteration, assignment, attachment, lapse or any form of impairment to the coverage,
benefits or proceeds provided under the Insurance Policies; and (d) enter into agreements for
additional insurance policies, bonds or premium financing.
19. The Bankruptcy Court has granted similar relief in other chapter 11 cases. See
e.g., In re Norte! Networks Inc., Case No. 09-10138 (Bankr. D. Del. Jan. 15, 2009); In re PPI
The Debtors do not concede that any Insurance Policy is an executory contract under the Bankruptcy Code.
However, to the extent that any Insurance Policy or any other agreement, policy or contract described in this Motion is
deemed an executory contract within the meaning of section 365 of the Bankruptcy Code, the Debtors are not, at this
time, seeking authority to assume such agreement. Bankruptcy Court authorization of payments will not be deemed to
constitute postpetition assumption or adoption of an Insurance Policy or any other agreement subject to this Motion as
an executory contract pursuant to section 365 of the Bankruptcy Code.
#11123803 v2
8
Holdings, Inc., Case No. 08-13289 (Bankr. D. Del., Dec. 15, 2008); In re Broadstripe, LLC,
Case No. 09-10006 (Bankr. D. Del. Jan. 6, 2009).
20. Pursuant to Bankruptcy Rule 6003(b), " ... a motion to pay all or part of a claim
that arose before the filing of the petition" shall not be granted by the Court within 20 days of the
Petition Date "( e ]xcept to the extent that relief is necessary to avoid immediate and irreparable
harm ... ". FED. R. BANKR. P. 6003(b). For the reasons described herein and in the Brunton
Affidavit, the Debtors submit that the requirements of Bankruptcy Rule 6003 have been met and
that the relief requested in this Motion is necessary to avoid immediate and irreparable harm to
the Debtors and their estates.
Notice
21. Notice ofthis Motion has been provided to: (a) the Office of the United States
Trustee for the District of Delaware; (b) the creditors holding the 20 largest unsecured claims
against the Debtors, as identified in the Debtors' respective chapter 11 petitions; (c) Lovells, 590
Madison Avenue, New York, NY 10022 (Attn: Christopher R. Donoho III, Esq.), counsel to
bondholder group for the 6.25% Convertible Senior Subordinated Secured Notes due 2027; and
(d) the Internal Revenue Service. As this Motion is seeking first day relief, notice of this Motion
and any related Order will be served as required by Local Rule 9013-1 (m). In light of the relief
requested in this Motion, no other or further notice need be provided.
22. This Motion does not contain any novel issues of law requiring briefing.
Therefore, pursuant to Rule 7 .1.2 of the Local Rules of Civil Practice of the United States
District Court for the District of Delaware, as amended from time to time (the "Local District
Court Rules"), as incorporated by reference into Local Rule 1 001-1 (b), the Debtors respectfully
#11123803 v2
9
request that the Bankruptcy Court set aside the briefing schedule set forth in Rule 7 .1.2( a) of the
Local District Court Rules.
No Prior Request
23. No prior motion for the relief requested in this Motion has been made to this or
any other court.
#11123803 v2
10
WHEREFORE, the Debtors respectfully request that the Bankruptcy Court enter an
order, substantially in the form attached to this Motion as Exhibit A, granting the relief requested
in this Motion and such other further relief the Bankruptcy Court deems just and proper.
Dated: July 9, 2009
Wilmington, Delaware
!;11123803 \2
11
Respectfully submitted,
Proposed Attorneys for the Debtors
EXHIBIT A
#11123803 v2
In re
UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
Chapter 11
Case No. 09- (__J
ELECTROGLAS, INC., et al.,
1
)
)
)
)
)
(Joint Administration Pending)
Debtors.
ORDER AUTHORIZING THE DEBTORS TO (I) CONTINUE
ALL INSURANCE POLICIES AND RELATED AGREEMENTS
AND (II) HONOR RELATED OBLIGATIONS
THIS MATTER having come before the Bankruptcy Court upon the Debtors' motion
(the "Motion")
2
for an order authorizing the Debtors to: (a) continue all insurance policies and
related agreements; and (b) honor related obligations, and the Bankruptcy Court having found
that: (a) it has jurisdiction over the matters raised in the Motion pursuant to 28 U.S.C. 157
and 1334(b); (b) this is a core proceeding pursuant to 28 U.S.C. 157(b)(2); (c) venue is lying
pro peri y with the Bankruptcy Court; (d) the relief requested in the Motion is in the best interests
of the Debtors, their estates and their creditors; (e) proper and adequate notice of the Motion and
the hearing has been given and that no other or further notice is necessary; and (f) upon the
record and after due deliberation, good and sufficient cause exists for the granting of the relief as
set forth in this Order; it is hereby
ORDERED, that the Motion is granted in its entirety; and it is further
ORDERED, that the Debtors are authorized, but not directed, to maintain and continue to
make all postpetition payments (including postpetition fees and premiums) with respect to the
Insurance Policies on an uninterrupted basis; and it is further
ORDERED, that the Debtors are authorized, but not directed, to maintain and continue on
1
The Debtors are Electroglas, Inc. (EIN 77-0336101) and Electroglas International, Inc. (EIN 77-0345011).
2
Capitalized terms used but not otherwise defined in this Order shall have the meanings ascribed to them in the
Motion.
#11123803 v2
an uninterrupted basis the Debtors' prepetition practices with respect to each policy or contract;
and it is further
ORDERED, that the Debtors are authorized, but not directed, to pay any prepetition
premiums and deductibles related to the Insurance Policies to the extent that the Debtors
determine, in their discretion, that such payment is necessary to avoid cancellation, default,
alteration, assignment, attachment, lapse or any form of impairment to the coverage, benefits or
proceeds provided under the Insurance Policies, or to avoid any other loss to the estates; and it is
further
ORDERED, that the Debtors are authorized, but not directed, to enter into new policies
or bonds or assume existing policies or bonds in the ordinary course of business; and it is further
ORDERED, that, to the extent that the Insurance Policies, or any related contract or
agreement, are deemed executory contracts, the relief granted by this Order shall not be deemed
an assumption of any contract pursuant to section 365 of the Bankruptcy Code, and all of the
Debtors' rights pursuant to section 365 of the Bankruptcy Code are expressly reserved; and it is
further
ORDERED, that the Debtors, their officers, employees and agents are authorized to take
or refrain from taking such acts as are necessary and appropriate to implement and effectuate the
relief granted in this Order without further order of the Bankruptcy Court; and it is further
ORDERED, that the requirements of Bankruptcy Rule 6003 have been satisfied; and it is
further
ORDERED, that the Bankruptcy Court shall retain jurisdiction over any matters arising
from or related to the implementation or interpretation of this Order.
Dated: July_, 2009
Wilmington, Delaware
iilll23803 v2
UNITED STATES BANKRUPTCY JUDGE
2
EXHIBITB
ny-870958
Schedule 1.2( d)(ii)
Specified Policies


Insurance
Carrier Premium Exoiration Limit
$491.30
C, Employee
Medical
\ Anthem Blue \
OK) spouse $1,028.60 8/1/2008 7/31/2009
$5 million per insured
PPO-CA Cross Employee+
covered expenses) *limit
1132JS (MA)
child(ren) $926.32 8/112008 7/3!12009
per type of procedure
ll32JQ (Other)
I
Employee
family $1,472.79 I 8/l/2008 I 7/3112009
Employee only $479.43 8/1/2008 7/31/2009
Employee
2121 N.
Medical
Anthem Blue 1132JA
spouse $1,003.75 811/2008 7/31/2009
California
$5 million per insured (if
PPO- Out of
Shield
Employee
Blvd, 7th
covered expenses) *limit
CA
child(ren) $903.99 8/112008 7/31/2009
Floor, Walnut
per type of procedure
Employee
Creek, CA
$1,437.20 8/l/2008 7/31/2009
94596
$391.61 8/l/2008 7/3112009
Employee+
Medical
I Anthem Blue I
I
spouse $82!.93 811/2008 7/31/2009 unlimited (if covered
HMO-CA Cross
59Pl2A
Employee+
expenses) *limit per type
child(ren) $741.32 8/l/2008 7/31/2009
of procedure
Employee
$1,174.51 8/1/2008 7/31/2009
Employee only $410.59 8/1/2008 7/31/2009
Employee+
1900 s.
spouse $815.02 8/112008 7/31/2009
Norfolk unlimited (if covered
Medical
I
Kaiser
I I
Street, Suite expenses) *limit per type
HMO
5475-0001 Employee
1 "1 1/
$680.76 8/l/2008 7/31/2009
290, San of procedure
Mateo, CA
Employee+
I
94403
,240.39 8/112008 7/31/2009
#11123803 v2
2
Insurance
Contracts
Dental
Vision
Basic
Life/AD&D
Voluntary
Life/AD&D
Global
Medical
Policy
# lll23803 v2
Insurance
Carrief
CIGNA
Vision Service
Plan
SunLife
ACE USA
3329699
12051846
007-5107-00
007-5107-0 l
GLM N00064877
'-
Coverage
level
Employee only
Employee
spouse
Employee
child(ren)
Employee+
family
Employee only
Employee+
spouse
Employee
child(ren)
Employee
family
Premium
$39.17
$74.90
$129.99
$129.99
'*
$7.05
$12.08
$12.34
$19.89
*Based on
Salary
Employee
Paid
$2,703
3
Address Insurance Limit
811/2008 7/31/2009
One Front
8/l/2008 7/31/2009 Street, 7th
annual'maximum'
Floor, San
8/1/2008 7/31/2009 Francisco, CA
benefit per person
94111
8/l/2008 7/31/2009
8/1/2008 7/31/2009
3333 Quality
811/2008 7/31/2009 Drive,
Rancho
based on usage
8/l/2008 7/31/2009
Cordova, CA
frequency allowance
95670
8/112008 7/3112009
2121 N.
8/l/2008 7/31/2009 Califomia
Blvd, Suite benefit coverage is the
840, Walnut limit
Creek, CA
811/2008 7/3112009
94596
All full time non-United
States salaried employees
who are in Active service.
436 Walnut
Medical expense coverage
Street,
up to $50,000 per person,
8/1/2009 7/31/2010 WA09D,
per occurence. Deductible
Philadelphia,
is $250 per person, per
PA 19106
occurence. Accidental
death &
coverage included, at
$300,000
Insurance
\./; _!


li' :'

. .
2
>
7
contracts Carrier ... ' Polley Number Effective Expiration
_ ..
All U.S. salaried
employees traveling on
behalf of the employer,
436 Walnut
who are in Active
World Class service.
Travel
Street,
Accidental Death &
Protection
ACE USA ADD N01062712 $2,500 8/l/2009 7/31/2010 WA09D,
Dismemberment
Policy
Philadelphia,
coverage is 5 timex
PA 19106
annaul salary or
$500,000, whichever is
Less. Aggregate limit is
$2,500,000 per Accident.
Global
I 00 California
Property
St STE 300
St Paul Fire & San
Policy
Marine
TT094004277 $46,948.00 6/1/2009 5/3l/201-
Francisco, CA
$7,500,000
(Master
Policy)
94111
$1,000,000 Each
I
Occurrence
$I ,000,000 Personal &
Advertising Limit
$1,000,000 Premises
Damage Limit
$2,000,000 General
I 00 California Aggregate
Global Included in St STE 300 $2,000,000
General St Paul Fire &
TT094004277
Global
6/!/2009 5/3112010
San Products/Comp Ops
Liability+ Marine Property Francisco, CA Aggregate
Umbrella Policy 94111 $5,000,000 Tech Errors
& Omissions Limit
$3,000,000 Employee
Benefits Liability
Aggregate
$1,000,000 Hired &
Non-owned autos Limit
$10,000,000 Umbrella
Limit
#Ill 23803 v2
4
Insunuu::e
<::on tracts
International
Package
(Master
Policy)
Marine
Cargo
Domestic &
International
Workers
Compensatio
n (USA)
Directors &
Officers
Primary $5M
Coverage
Directors &
Officers
$5M Side A
DIC
#11123803 v2
Travelers
Continental
Insurance
Travelers
Navigators
Insurance
XL Specialty
Insurance Co.
TT09404279
OC7lll96
WC277Ml54
UB
NY08DOL602033
IV
ELU1730708
Coverage
level Premiunr Effective
$13,723 6/1/2009
$2,500.00 6/1/2009
$19,159.00 6/1/2009
$47,700.00 9/30/2008
$40,500.00 9/30/2008
5
5/3112010
5/31/2010
5/31/2010
9/30/2009
9/30/2009
100 California
St STE 300
San
Francisco, CA
94111
406 Howard
St. #600
San
Francisco, CA
94105
100 California
St STE 300
San
Francisco, CA
94111
One Penn
Plaza, 55th
FL
New York,
NY 10! 19
70 Seaview
Avenue
Stamford, CT
06902
$1 ,000,000 Each
Occurrence
$! ,000,000 Personal &
Advertising Limit
,000,000 Premises
Damage Limit
$2,000,000 General
Aggregate
$2,000,000
Products/Camp Ops
Aggregate
$1 ,000,000 Any one loss
By Accident $1,000,000
Each Accident
By Disease $1,000,000
Each Employee
By Disease $1,000,000
Aggregate
$5,000,000 Aggregate
$5,000,000 Aggregate
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4600
Touchton Rd
Officers Carolina
East, Bldg
$5M excess Casualty 1848607 $32,400.00 9/30/2008 9/30/2009 $5,000,000 Aggregate
of$5M Side Insurance Co.
100, Ste 400
ADIC
Jacksonville,
FL 32246
15 Mountain
Crime & Chubb
81736791 $21,349.00 11/1/2008 9/30/2009
ViewRd $3,000,000 Each Claim
Fiduciary Insurance
Warren, New $3,000,000 Aggregate
Jersey 07059
I
UK Head
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Office
UK
Zurich 054/9LON/60 120
Zurich House,
Employers
Insurance 834/0
1,050 7/1/2008 6/30/2009 Stanhope Rd 10,000,000
Liability
Portsmouth,
Hampshire
POl lDU
UK
2-8 Colmore
Personal
Royal Sun &
89-RKJ900495 717.19 7/1/2008 6/30/2009
Row
Comprehensive
Alliance Birmingham
Auto Policy
B32BT
Master Policy:
100 California
France
St Paul
St STE 300
GL&Emp.
Travelers
TBD $2,750.00 6/1/2008 5/3112010 San Included above
Liab.
Local Policy:
Francisco, CA
COVEA
94111
RISKS
France
Motor
SWISSLIFE nll099532 999.99 l/1/2009 12/3112009
Contingent
Liability
#11!23803 v2
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Motor Fleet SWISSLIFE nll09953l 3,659.99 1/l/2009 12/31/2009
Master Policy:
St Paul I 00 California
Taiwan Travelers
No. 1400-
St STE 300
GL I Public Local Policy:
972220038
$2,500.00 6/1/2009 5/3112010 San Included above
Liability South China Francisco, CA
Insurance Co. 94111
Ltd
Master Policy: 2 Rincon
AIG Center
Taiwan Local Policy: 0952- 121 Spear St
Property AIG General 0661001335- $1,500.00 6/l/2009 5/31/2010 5th Floor Included above
Policy Insurance 000000 San
(Taiwan) Co., Francisco, CA
Ltd. 94105
100
Directors &
Constitution
Officers
XL Specialty
TBD
Primary/Run
$185.000.00 9/30/2009 9/30/2015
Plaza;l7
1
h
$15,000,000
Liability
Insurance Co. off Floor;
Hartford CT
06103
100
Directors &
Constitution
Officers
XL Specialty
TBD
Primary/Go-
$34,000.00 9/30/2009 9/30/2015
Plaza;l7
1
h
$3,000,000
Liability
Insurance Co. Forward Floor;
Hartford CT
06103
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#11123803 v2
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