ML14133A018

Dow Chemical Company Surety Bond Increase Rider and Updated Standby Trust Agreement Schedules (TAC M79548)

ML14133A018
Person / Time
Site:	Dow Chemical Company
Issue date:	03/07/2014
From:	Dittenber T Dow Chemical Co
To:	Kenneth Kline NRC/FSME/DWMEP, Office of Nuclear Material Safety and Safeguards
References
TAC M79548
Download: ML14133A018 (17)

Text

2030 DOW CENTER March 27, 2014 VIA FEDERAL EXPRESS Mr. Kenneth Kline U.S. Nuclear Regulatory Commission Office Director - Nuclear Material Safety and Safeguards 11545 Rockville Pike Rockville, MD 20852 THE DOW CHEMICAL COMPANY SURETY BOND INCREASE RIDER AND UPDATED STANDBY TRUST AGREEMENT SCHEDULES A - B

Dear Mr. Kline:

Attached for your files are a fully-executed increased Surety Bond Rider and updated Standby Trust Agreement Schedules A and B on behalf of The Dow Chemical Company. Bond #6210359 was increased to $5,789,871 due to the annual inflation factor. Bond #6210358 remains at $1,125,000 as required by Appendix B of 10 CFR Part 30.35, and a copy is attached.

Should you have any questions regarding these financial assurance instruments, please feel free to contact me,

Regards, Tina Dittenber Senior Paralegal, EH&S Legal The Dow Chemical Company 2030 Dow Center Midland, Michigan 48674 Phone: 989-636-0762 Email: kkdittenber@dow.com Attachments cc: Jim Weldy, The Dow Chemical Company, 1803 Building, Midland, MI 48674

increase PENALTY RIDER To he attached and form a part of Bond No. 6210359 dated the 30th day of Ap. 2003, executed by Safeco Insurance Company of America as surety, on behalf of The Dow Chemical Company as current principal of record, and in favor of US Nuclear Reeulalorv Commission, as Obligee, and in the amount of Five Million Six Hundred Ninety Three Trhousand Eighty EiEihl Dollars and 00/10l

($5.693,088.00).

In consideration olf the agreed premium charged ror this bond. iI is understood and agreed that Safeco Insurance Company of America hereby consents that effeclive from the 29111 day iof April, 2014, said hond shall be amended as fo)llows:

TIlE HOND PENALTY SHAll BE Increased:

FROM: Five Million Six HIundred Ninetv Three Thousand Eilhty Eight Dollars and 010/100 (S5.693.1088.00)

TO: Five Million Seven Hundred Eighty Nine Thousand Eight Hundred Seventy One iPollars and 00110(0 ($5.789g*S7 1.0()

The Increase of said bond penalty shall be effective as of the 29th day of April. 2014, and does hereby agree. that the continuity of protection under said bond subject to changes in penalty shall not be impaired hereby, provided that the aggregate liability (of the above mentioned bond shall not exceed the amnount of liability assumed by it at the time the.act and/or acts of default were committed and in no event shall Such liability he cuuniulativ.e.

Signed. sealed and dated this 19th day Of March, .20_4 The [Dow Chemleal Comrpantv RfiJ:!s;

. Weidemllo,l Safeco Insurance Coni parv o Anmerica

• .,ieI I',ý. iziaL, %f.

5t i"NFVI t-IN-F.CU

THIS POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND.

This Power oeAttorney irilts the acts of those named herein, and they have no authority to bind the Company except In the manner and to the extent herein stated.

Cerlificate No. 6375921 First National Insurance Company of America General Insurance Company of America Safeco Insurance Company of America POWER OF ATTORNEY KNOWN ALL PERSONS BY THESE PRESENTS: That First National Insurance Company of America, General Insurance Company of America, and Safeco Insurance Company of America are corporations duly organized under the laws of the State of New Hampshire (herein collectively called the *Companies'), pursuant to and by authority herein set forth, does hereby name, constiute and appoint. Brian Q. Block: Daniel P Q iaj0 s.if..Lo..* jQ. eaL.. .ý .r. J.ocker: William F. Simn all of the city of Paoot state of PA each Individually ifthere be more than one named, its true and lawful attorney-in-fact to make, execute, seal, acknowledge and deliver, for and on its behalf as surety and as its act and deed, any and all undertakings, bonds, recognizances and other surety obligations, in pursuance of these presents and shall he as binding upon the Companies as ifthey have been duly signed by the president and attested by the secretary of the Companies intheir own proper persons.

INWITNESS WHEREOF, this Power of Attorney has been subscribed by an authorized officer or official of the Companies and the corporate seals of the Companies hove been affixed thereto this 41h dayof December 2013 First National Insurance Company of America General Insurance Company of America .

Safeco Insurance Company of America F1n By: . . ..

.....

SD aOvid M. Cardy, Asvsslant Secreairr_

, STATE OF PENNSYLVANIA ss _

- 0 COUNTY OF MONTGOMERY

=0 On this 4tlh day of December 201, before me personally appeared D,3vid M. Carey. who acknowiedged himself to he the Assistarnl Secretary of First National a, Insurance Company of Amica, General Insurance Company of America, and Safeco Insurance Company of America, and that he, as such, being authorized so to do, execute the >.U)

'- 2 foregoing instrument for the purposes therein contained by signing on tehalf of the corporations by himself as a duly authorized officer

> 1~.

0 .

2- INWITNESS WHEREOF, I have hereunto subscribed.my name and affixed my notarial seal at Plymouth Meeting, Pennsylvania, on the day and year first atove written.

a)By:J~

Te'resa Pastella, Notary Public 0 0 CL

" 0 This Power of Attorney is made and executed.:*rsuant to and byauthority of the following By-law and Authorizations of First National Insurance Company of America. General T*0

,- insurance Company of America, and Safeco Insurance -Company of America, which are now Infull force and effect reading as follows; 0 4 ARTICLE IV- OFFICERS - Section 12. Power of Attorney. Any officer or other official of the Corporation authorized for that purpose in writing by the Chairman or the President, and >, 0D

0. subject to such limitation as the Chairman or the President may prescribe, shall appoint such attomrnys-in-fact, as may be necessary to act in behalf of the Corporation to)make, execute. :6 3:

-4; seal, ackno'medge and deliver as surety any and all undertakings, boinds, recognizances and other surety obligations. Such attorneys-in-fact, subject to the limitations set forth in their "- (a

, respective powers of attorney, shall have full power to bind the Corporation by their signature and executed, such instruments shall be as binding as 6 signed by the President and >

attested to by the Secretary. Any power or authority granted to any mepresentative or attorney-in-fact under the provisions of this article may be revoked at any time by the Board, the W

>1 Chairman, the President or by the officer or officers granting such power or authority.

• a ofDesignation-Certificate eesr The nCmayakoldesrtaysrt Presidentof the Company. acting pursuJanttothe Bylawsof the Company, authorizes DavidM. Carey. Assistant Secretaryto appoint such attrneys-in-a 0 -'

fact as may be necessary to act on behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and alf underlakings, bonds. racognizances and other surely oiligations, ru ~

Authorization - By unanimous consent of the Company's Board of Directors, the Company consents that facsimile or mechanicaliy reproduced signature of any assistani secretary ol the Company. wherever appearing upon a certified copy of any power of attorney issued by the Company in connection with surety bonds, shall be valid and binding upon the Company wilh the same !orceand effect as though manually affixed.

1,Gregory W.Davenport, the undersigned. Assistant Secretary. of First National Insurance Company of America, General Insurance Company of America. and Safeco Insurance Company of America do hereby certify that the original power ofattorney of which the foregoing is a fuli. true and correct copy o, the Power of Attorney executed by said Companies, is in fullforcý and effect and has not been revoked.

INTSIOYWEEF aehereunto set my hand and affixed the seals of said Companies ths ~ fyof .______ 20/~.

Gregory W. Davenport. Assistant Secreta" 15of 100 POA -FNICA. GICA&SICA At.S 12674,122013 - 3 Corwalv

Schedule A This Agreement demonstrates financial assurance for the following cost estimates or certification amounts for the following licensed activities:

UoS. NUCLEAR COST ESTIMATES FOR REGULATORY REGULATORY COMMISSION NAME AND ADDRESS OF ASSURANCES LICENSE ADDRESS OF LICENSED DEMONSTRATED BY NUMBER(S) LICENSEE ACTIVITY THIS AGREEMENT NRC License The Dow Chemical Company The Dow Chemical Company Unsealed = $1,125,000 21-00265-06 2030 Dow Center H&ES Industrial Hygiene Sealed = $0 Midland, MI 48674 1803 Building Midland, MI 48640 NRC License The Dow Chemical Company The Dow Chemical Company $5,789,871 R-108 2030 Dow Center TRIGA Research Reactor Facility Midland, M1 48674 1602 Building Midland, MI 48640 The cost estimates listed here were last adjusted and reported to the NRC on March 20, 2013.

Updated; 27 MARCH 2014 I

Schedule B

1. DOLLAR AMOUNT: $1,125,000 AS EVIDENCED BY: Surety Bond #6210358

2. DOLLAR AMOUNT: $5,789,871 AS EVIDENCED BY: Surety Bond #6210359 Upoated: 27 March 2014 Page 1

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SURETY BOND Date bond executed: June 17, 2003 Effective date: April 30, 2003 Principal: The Dow Chemical Company, 2030 Dow Center, Midland, Michigan 48674 Type of organization: Corporation State of incorporation:. Delaware NRC license numbers, name and address of facilities, and amounts for decommissioning activities guaranteed by this bond:

NIRC License R- 108 The Dow Chemical Company $1,128,356 TRIGA Research Reactor .Facility 1602 Building Midland, MI 48640 Surety: Safeco Insurance Company of America Type of organization: Corporation Washington State of incorporation: (if applicable)

Surety's qualification injurisdiction where licensedfacility is located Listed in US Department of Treasury's Circular 570; Approved Limit Exceeds Bond Requirement Surety's bond number:. 6210359 Total penal sum of bond: $1,128,356 Know all persons by these presents, that we, the Principal and Surety hereto, are fimily bound to the U.S. Nuclear Regulatory Commission (hereinafter called NRC) in the above penal sum for the payment of which we bind ourselves, our heirs, executors, administrators, successors, and assigns jointly and severally; provided that, where the Sureties are corporations acting as co-sureties, we, the Sureties, bind ourselves in such sum "jointly and severally' only for the purpose of allowing a joint action or actions against any or all of us, and for all other purposes each Surety binds itself, jointly and severally with the Principal, for the paymrent of such suin only as is set forth opposite the name of such Surety; but if no limit of liability is indicated, the limit of liability shall be the full amount of the penal sum.

WHEREAS, the U.S. Nuclear Regulatory Commission, an agency of the U.S. Goverrunent, pursuant to the Atomic Energy Act of 1954, as amended, and the Energy Reorganization Act of I

1974, has promulgated regulations in Title 10, Chapter .1of the Code of Federal. Regulations, Parts 30, 40, and 50, applicable to the Principal, which require that a license holder or an.

applicant for a facility license provide financial assurance that funds will be available when needed for facility decommissioning; NOW THEREFORE, the conditions of the obligation are such that if the Principal shall faithfully, before the beginning of decommissioning of each facility identified above, fund the standby trust fund in the amounts identified above for the facility; Or, if the Principal shall fund the standby trust fund in such amount after an order to begin facility decommissioning is issued by N"RC or a U.S. District Court or other court of competent jurisdiction; Or, if the Principal shall provide alternative financial assurance, and obtain NRC's written approval of such assurance, within 30 days after the date a notice of cancellation from the Surety

.is received by both the Principal and the NRC, then this obligation shall be null and void; otherwise it is to remain in full .force and effect.

The Surety shall become liable on this bond obligation only when the Principal has .failed to fulfill the conditions described. above. Upon notification by NRC that the Principal has failed to perform as guaranteed by this bond, the Surety shall place funds in the amount guaranteed for the facility into the standby trust fund.

The liability of the Surety shall not be discharged by any payment or succession of payments hereunder, unless and until such payment or payments shall amount in the aggregate to the penal sum of the bond, but in no event shall the obligation of the Surety hereunder exceed the amount of said penal sumn.

The Surety may cancel the bond by sending notice of cancellation by certified mail to the Principal and to NRC provided, however, that cancellation shall not occur during the 90 days beginning on the date of receipt of the notice of cancellation by both the Principal and NRC, as evidenced by the return receipts.

The Principal may terminate this bond by sending written notice to NRC and to the Surety 90 days prior to the proposed date of termination, provided, however, that no such notice shall become effective until. the Surety receives written authorization. for termination of the bond from NRC.

The Principal and Surety hereby agree to adjust the penal sum of the bond yearly so that it guarantees a new amount, provided that the penal sum does not increase by more than 20 percent in any one year and no decrease in the penal sum takes place without the written permission of NRC.

If any part of this agreement is invalid, it shall not affect the remaining provisions that will remain valid and enforceable.

In Witness Whereof, the Principal and Surety have executed this financial guarantee bond and have affixed their seals on the date set .forth above.

The persons whose signatures appear below hereby certify that they are authorized to execute this surety bond on behalf of the Principal and Surety.

Principal: HE WICAL OMP, "

By: ,, 7 4 ,/L*, RA Name J. P. Reinhard Executive Vice President and Title Chief Financial Officer (Corporate Seal)

Corporate Surety: Safeco Insurance Company of America Address: 4634 154th Place, N.E., Adams. Bldg.,

Redmond, WA 98052 State of Incorporation: Washington Liability Limit: $j,1l28356 By: _ _ _ _ _ _ _ _ _ _ _ _

Name K. Lide Title: Attorney-In-Fact (Corporate Seal)

Bond Premium $6,353.00

.3

ACKNOWLEDGMENT OF SURETY STATE OF MICHIGAN )

COUNTY OF WAYNE )

On this 17t'h day of June , 2003 , before me personally came K. Lide who, being by me duly sworn, did depose and say that she is an Attorney-in-Fact of Safeco Insurance Company of America and knows the corporate seal thereof-; that the seal affixed to said annexed instrument is such corporate seal, and was thereto affixed by authority of the Power of Attorney of said Company, of which a Certified Copy is hereto attached, and that she signed said instrument as an Attorney-in-Fact of said Company by like authority.

Acknowledged and Sworn to before me on the date above written My Commission Expires Latrecia R. Scott Notary Public. Wayne County, Michigan My Commission Expres,: March 17, 2005 C

oý (yarnly Ptibl

0O IMPORTANT NOTICE TO SURETY BOND CUSTOMERS REGARDING THE TERRORISM RISK INSURANCE ACT OF 2002 As a surety bond customer of one of the SAFECO insurance companies (SAFECO Insurance Company of America, General Insurance Company of Americas, First National Insurance Company, American States Insurance Company or American Economy Insurance Company), it is our duty to notify you that the Terrorism Risk Insurance Act of 2002 extends to "surety insurance",

This means that under certain circumstances, we may be eligible for reimbursement of certain surety bond losses by the United States government under a formula established by this Act.

Under this formula, the United States government pays 90% of losses caused by certified acts of terrorism that exceed a statutorily established deductible to be paid by the insurance company providing the bond. The Act also establishes a $100 billion cap for the total of'all losses to be paid by all insurers: for certified acts of terrorism. Losses on some or all of your bonds may be subject to this cap.

This notice does not modify any of the existing terms and conditions of this bond, the underlying agreement guaranteed by this bond, any statutes governing the terms of this bond, or any generally applicable rules of law.

At this time, there is no premium charge resulting from this Act.

• .-.FECO INSURANCE COMPANY OF AMERICA POWER SAF E Co OF ATTORNEY GENERAL iNSURANCE COMPANY OF AMERICA HOME OFFICE: SAFECO PLAZA SEATTLE. WASHINGTON 9.1B5 No. 7083 KNOW ALL BY THESE PRESENTS:

That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA, each a Washington corporation, does eachs hereby, appoin!

........................................... .........LIDE; L SCOTT; 9. HALTl4ON. Detroit, Michi-*s. ......... ..... ...... .. ...............

its true and lawful arnorney(s)-in-fact, with iUll authority to execute on its behalf fidelily and surety bonds or undertakings and other documents of a similar character issued in the course of ts business. and to bind the respective company thereby.

IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA have each executed and S*tesed these presents this I th day of June 2002 CHRISTINE MEAD, SECRETARY MIKE MCGAVICK. PRESIDENT CERTIFICATE Extract from ,he By-Laws of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA:

"AcI~e V. Section 13. - FIDFLITY AND SURETY BONDS _. the President. any Vice President, the Secretary, and any Assistant Vice President appointed for that purpose by the officer in charge of surety operations, shall each have authority to apooint individuals as attomeys-in-fact or under other appropriate titles with authority to etectle on beha!f or the company rfdelity and surety bonds anl other documents of similar character issued by 'the company in the course of its business... On any instrument making or evidencing such appointment, tfhe signatures may be affixed by tacaimile. On any instrument conferring such authority or on any bond or underlaking cf the compan, ".!ýeseat. or a farcsimile thereof, ma-y te impressed owaffixed or in any other manner reproduced; provided, however, that the Seal shall not be necessary to.the valijity of any such instrument or undertaking.,

Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA adopted July 28. 1970.

'On any certificate executed by the Secretary or an assistant secretary of the Company setting out.

(i) The rovisirons of A,-tic!e V, Section 13 of the By.Laws, and 6ii) A copy of the pcwar.of-3alomey appointment. executed pursuant thereto. and (iii) Certifying that said power-of-atomey appointment is in full force and effect, the signature of Ithe corifying officer may be by facsimile, and the seal of the'Company may be a facsimile thereof-'

I. Christine %ead. Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA, do hereby certify that Uhe fozegoing exitracts of the By-Laws andt of a Resolution of the 0oatd Of 0,rectors of these corporations, and of a Power of Attorney issued pursuant thereto, are true anj corrqct, and that both th12 9y-Laws, the Resolution and the Power of Aorney are still in full force and effect.

IN WITNESS WHEREOF, I "ave rhereunto set my hand and affixed the facsimile seat of said corporation this .17th day of June 2003 CHRISTINE MEAD. SECRETARY S097 iSAEF 210i (DAregistcred lradenmark of S-SFECO Co'cofaz;Oon 06,1112002 POF

SURETY BON.0 Date bond executed: June 1.7, 2003 Effective date: April 30, 2003 Principal: The Dow Chemical Company. 2030 Dow Center, Midland. Michigan 48674 Type of organization: Corporation State of incorporation: Delaware NRC license numbers, namne and address of facilities, and amounts for decommissioning activities guaranteed by this bond:

NRC License 21-00265-06 The Dow Chemical Company Unsealed = $846,267 H&ES Industrial Hygiene Sealed = $84,628 1803 Building Midland, MI 48640 Suretyr: Safeco Insurance Company of America Corporation Type of organization:

State of incorporation: Washig ton (if applicable)

Surety's qualification in jurisdiction where licensed facility is located Listed in US Department of Treasury's Circular 570; Approved Limit Exceeds Bond Requirement Surety's bond number: 6210358 Total penal sum of bond: $930,895 Know all persons by these presents, that we, the Principal and Surety hereto, are firmly bound to the U.S. Nuclear Regulatory Commission (hereinafter called NRC) in the above penal sum for the payment of which we bind ourselves, our heirs, executors, administrators, successors, and assigns jointly and severally; provided that, where the Sureties are corporations acting as co-sureties, we, the Sureties, bind ourselves in such sum "jointly and severally' only for the purpose of allowing ajoint action or actions against any or all of us, and for all other purposes each Surety binds itself, jointly and severally with the Principal, for the payment of such sum only as is set forth opposite the name of such Surety; but if no limit of liability is indicated, the limit of liability shall be the full amount of the penal sum.

WHEREAS, the U.S. Nuclear Regulatory Commission, an agency of the U.S. Goverrnment, pursuant to the Atomic Energy Act of 1954, as amended, .and the Energy Reorganization Act'of I

C) 7) 1974, has promulgated regulations in Title 10, Chapter I of the Code of Federal Regulations, Parts 30, 40, and 50 , applicable: to the Principal, which require that a license holder or an applicant ýfor a facility license provide financial assurance that funds will be available when needed for facility decommissioning; NOW THEREFORE, the conditions of the obligation are such that if the Principal shall faithfully, before the beginning of decommissioning of each facility identified above, fund the standby trust fund in the amounts identified above for the facility; Or, if the Principal shall fund the standby trust fund in such amount after an order to begin facility decommissioning is issued by NRC or a U.S. District Court or other court of competent jurisdiction.,

Or, if the Principal shall provide alternative financial assurance, and obtain NRC's written approval of such assurance, within 30 days after the date a notice of cancellation from the Surety is received by both the Principal and the NRC, then this obligation shall be null and void; otherwise it is to remain in full force and effect.

The Surety shall become liable on this bond obligation only when the Principal has failed to fulfill the conditions described above. Upon notification by NRC that the Principal has failed to perform as guaranteed by this bond, the Surety shall place funds in the amount guaranteed for the facility into the standby trust fund.

The liability of the Surety shall not be discharged by any payment or succession of payments hereunder, unless and until such payment or payments shall amount in the aggregate to the penal sum of the bond, but in no event shall the obligation of the Surety hereunder exceed the amriount of said penal sum.

The Surety may cancel, the bond by sending notice of cancellation by certified mail to the Principal and to NRC provided, however, that cancellation shall not occur during the 90 days beginning on the date of receipt of the notice of cancellation by both the Principal and NRC, as evidenced by the return receipts.

The Principal may terminate this bond by sending wtitten notice to NRC and to the Surety 90 days prior to the proposed date of termination., provided, however, that no such notice shall become effective until the Surety receives written authorization for termination of the bond from NRC.

The Principal and Surety hereby agree to adjust the penal sum of the bond yearly so that it guarantees a new amount, provided that the penal sum does not increase by more than 20 percent in any one year and no decrease in the penal sum takes place without the written permission of NRC.

If any part of this agreement is invalid, it shall not affect the remaining provisions that will remain valid and enforceable.

i

In Witness Whereof, the Principal and Surety have executed this financial guarantee bond and have affixed their seals on the date set forth above.

The persons whose signatures appear below hereby certify that they are authorized to execute this surety bond on behalf of the Principal and Surety.

Principal: T.. D(~ C 3MI A. bMPAN' g By: ~ 1~'L~Lt~Ld/

Name J. P. Reinhard Ebxecutive Vice President and Title Chief Financial Officer (Corporate Seal)

Corporate Surety: Safeco Insurance Company of America Address: 4634 154th Place, .N.E., Adams Bldg.,

Redmond, WA 98052 State of Incorporation: Washington Liability Lit: $930 895 By: _i . ,,J-,

Name K. Lide Title: Attorney-In-Fact (Corporate Seal)

Bond Premium $5,241.00 3

C)

ACKNOWLEDGMENT OF SURETY STATE OF MICHIGAN )

COUNTY OF WAYNE On this 17th day of June 2003 before me personally came K. Lide who, being by me duly sworn, did depose and say that she is an Attorney-in-Fact of Safeco Insurance Company of America . and knows the corporate seal thereof; that the seal affixed to said annexed. instrument is such corporate seal, and was thereto affixed by authority of the Power of Attorney of said Company, of which a Certified Copy is hereto attached, and that she signed said instrument as an Attorney-in-Fact of said Company by like authority.

Acknowledged and Sworn to before me on the dare above written My Commission Expires Lo t.ýeei a R. Se Lilt Notary ?ib:kc, Waync County. Michigan My Commission Expircs: March 17. 2005

ý(Noaryv Pziblh

IMPORTANT NOTICE TO SURETY BOND CUSTOMERS REGARDING THE TERRORISM RISK INSURANCE ACT OF 2002 As a surety bond customer of one of the SAFECO insurance companies (SAFECO Insurance Company of America, General Insurance Company of Americas, First National Insurance Company, American States Insurance Company or American Economy Insurance Company), it is our duty to notify you that the Terrorism Risk Insurance Act of 2002 extends to "surety insurance".

This means that under certain circumstances, we may be eligible for reimbursement of certain surety bond losses by the United States government under a formula established by this Act.

Under this formula, the United States government pays 90% of losses caused by certified acts of terrorism that exceed a statutorily established deductible to be paid by the insurance company providing the bond. The Act also establishes a $100 billion cap for the total of all losses to be paid by all insurers for certified acts of terrorism. Losses on some or all of your bonds may be subject to this cap.

This notice does not modify any of the existing terms and conditions of this bond, the underlying agreement guaranteed by this bond, any statutes governing the terms of this bond, or any generally applicable rules of law.

At this time, there is no premium charge resulting from this Act.

~SAFECO' POWER SAFECO INSURANCE COMPANY OF AMERICA GENERAL INSURANCE COMPANY OF AMERICA OF ATTORNEY HOME OFFICE: SAFECO PLAZA SEATTLE, WASHINGTON 9s185 No. 7083 KNOW ALL BY THESE PRESENTS:

That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY:OF AMERICA. each a Washington corporation, does each hereby appoint

...... ; ..................................... K LIDE: L SCOTT; S. HALTHON; Desoit. Michiga.n................ ........... ° o-.......................

its true and lawful atrriey(s)-in-fact. with full authority to execute on its behalf fidelity and surety bonds or undertakings and other documents of a sirmlar character issued in the course of its business, and to bind the respective company thereby, IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA have each executed and atlested these presents this Ithh day of June , 2002 CHRISTINE MEAD, SECRETARY MIKE MCGAVICK, PRESIDENT CERTIFICATE Extract from the By-Laws of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA;

'Ariclo V, Section 13. - FIDELITY AND SURETY BONDS _ the President. any Vice President. the Secretary. and any Assistant Vice President appo;nted for that purpose by the officer in charge of surety operations, shafl each have authority to appoint individuals as attorneys-in-fact or under other appropriate tilles with authority to execute on beha!f of the company fidelity and surety bonds and other documents of similar character issued by the company in the course of it5 business.;. On any instrument making or evidencing such appointment. the signatures may be afrixed by facsimile. On any instrument conferring such authority or on any bond or undertaking :f the =omnpar"/. '.%e seat. or a facsimile thereof, may b r;mnressed or affixed or in.any other manner reproduced: provided, however, that the seal thall not be necessary to the validity of any such instrument or undertaking."

Exttrct from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA and o( GENERAL INSURANCE COMPANY OF AMERICA adopted July 28. 1970.

• On any cemirticate executed by the Secretaryor an assistant secretary of the Company selling out, (ij The provisions of Aticle V, Section 13 of the By-Laws, and (6i) A copy of the power-of-attomey appointment, executed pursuant thereto, and (io) Certifying that said power.of-attomey appointment imsin full force and effect.

the signature of lte.certtying officer may be by facsimile, and the seal of "e Company may be a facsirrtile thereof."

$. Christine Mead. Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA, do hereby certitf that the fjregcing extracts of the By-Laws and of a Resolution of the Board of Directors of these corporations, and of a Power of A.tomrey issued pursuant thereto. are true and correct, and that both the By-Laws, Ute Resolution and (he Power of Attorney are still in lull force and effect.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsimile seal of said corporation this 17th day of Jiu ne 2003 CHRISTINE MEAD, SECRETARY S.0S;4,SAEF 201 fDA,regisnreid tradernati of SAFECO Corptiriton POF 063/1112002