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 CENTERMarch 27, 2014VIA FEDERAL EXPRESSMr. Kenneth KlineU.S. Nuclear Regulatory Commission Office Director

-Nuclear Material Safety and Safeguards 11545 Rockville PikeRockville, MD 20852THE DOW CHEMICAL COMPANYSURETY BOND INCREASE RIDERAND UPDATED STANDBY TRUST AGREEMENT SCHEDULES A -B

Dear Mr. Kline:

Attached for your files are a fully-executed increased Surety Bond Rider andupdated Standby Trust Agreement Schedules A and B on behalf of The DowChemical Company.

Bond #6210359 was increased to $5,789,871 due to theannual inflation factor. Bond #6210358 remains at $1,125,000 as required byAppendix 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 LegalThe Dow Chemical Company2030 Dow CenterMidland, Michigan 48674Phone: 989-636-0762 Email: kkdittenber@dow.com Attachments cc: Jim Weldy, The Dow Chemical

Company, 1803 Building,

Midland, MI 48674 increase PENALTY RIDERTo he attached and form a part of Bond No. 6210359 dated the 30th day of Ap. 2003, executed bySafeco Insurance Company of America as surety, on behalf of The Dow Chemical Company ascurrent principal of record, and in favor of US Nuclear Reeulalorv Commission, as Obligee, and inthe 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 thatSafeco 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 and00110(0 1.0()The Increase of said bond penalty shall be effective as of the 29th day of April. 2014, and doeshereby agree. that the continuity of protection under said bond subject to changes in penalty shallnot be impaired hereby, provided that the aggregate liability (of the above mentioned bond shall notexceed the amnount of liability assumed by it at the time the.act and/or acts of default werecommitted and in no event shall Such liability he cuuniulativ.e.

Signed. sealed and dated this 19th day Of March, .20_4The [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 oe Attorney 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. 6375921First National Insurance Company of AmericaGeneral Insurance Company of AmericaSafeco Insurance Company of AmericaPOWER OF ATTORNEYKNOWN ALL PERSONS BY THESE PRESENTS:

That First National Insurance Company of America, General Insurance Company of America, and Safeco Insurance Company ofAmerica 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, doeshereby name, constiute and appoint.

Brian Q. Block: Daniel P Q iaj0 jQ. eaL.. .ý .r. J.ocker:

William F. Simnall of the city of Paoot state of PA each Individually if there 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 andshall he as binding upon the Companies as if they have been duly signed by the president and attested by the secretary of the Companies in their own proper persons.IN WITNESS 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 affixedthereto this 41h dayof December 2013First National Insurance Company of AmericaGeneral Insurance Company of America .Safeco Insurance Company of AmericaF1nBy: ....... ..SD aOvid M. Cardy, Asvsslant Secreairr_

, STATE OF PENNSYLVANIA ss _-0 COUNTY OF MONTGOMERY

=0On this 4tlh day of December 201, before me personally appeared D,3vid M. Carey. who acknowiedged himself to he the Assistarnl Secretary of First Nationala , 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~.2- IN WITNESS WHEREOF, I have hereunto subscribed.my name and affixed my notarial seal at Plymouth

Meeting, Pennsylvania, on the day and year first atove written.

0 .a)By:J~Te'resa Pastella, Notary Public 00 CL" 0 This Power of Attorney is made and to and byauthority of the following By-law and Authorizations of First National Insurance Company of America.

General 0,- insurance Company of America, and Safeco Insurance

-Company of America, which are now In full 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 >, 0D0 .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.Certificate ofDesignation-The Presidentof the Company.

acting pursuJanttothe Bylawsof the Company, authorizes DavidM. Carey. Assistant Secretaryto appoint such attrneys-in-a a eesr nCmayakoldesrtaysrt 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 surelyoiligations, 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 uponthe Company wilh the same !orce and 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 Companyof 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 full forcýand 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 100POA -FNICA. GICA & SICAAt.S 12674,122013

-3 Corwalv Schedule AThis Agreement demonstrates financial assurance for the following cost estimates or certification amounts for thefollowing licensed activities:

UoS. NUCLEARREGULATORY COMMISSION LICENSENUMBER(S)

NRC License21-00265-06 NRC LicenseR-108NAME ANDADDRESS OFLICENSEEThe Dow Chemical Company2030 Dow CenterMidland, MI 48674The Dow Chemical Company2030 Dow CenterMidland, M1 48674ADDRESS OFLICENSEDACTIVITYThe Dow Chemical CompanyH&ES Industrial Hygiene1803 BuildingMidland, MI 48640The Dow Chemical CompanyTRIGA Research Reactor Facility1602 BuildingMidland, MI 48640COST ESTIMATES FORREGULATORY ASSURANCES DEMONSTRATED BYTHIS AGREEMENT Unsealed

= $1,125,000 Sealed = $0$5,789,871 The cost estimates listed here were last adjusted and reported to the NRC on March 20, 2013.Updated; 27 MARCH 2014I Schedule B1. DOLLAR AMOUNT: $1,125,000 AS EVIDENCED BY: Surety Bond #62103582. DOLLAR AMOUNT: $5,789,871 AS EVIDENCED BY: Surety Bond #6210359Upoated:

27 March 2014Page 1 i (SURETY BONDDate bond executed:

June 17, 2003Effective date:April 30, 2003Principal:

The Dow Chemical

Company, 2030 Dow Center, Midland, Michigan 48674Type of organization:

Corporation State of incorporation:.

DelawareNRC license numbers, name and address of facilities, and amounts for decommissioning activities guaranteed by this bond:NIRC License R- 108The Dow Chemical CompanyTRIGA Research Reactor .Facility 1602 BuildingMidland, MI 48640$1,128,356 Surety: Safeco Insurance Company of AmericaType of organization:

Corporation State of incorporation:

Washington (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:.6210359Total penal sum of bond: $1,128,356 Know all persons by these presents, that we, the Principal and Surety hereto, are fimily bound tothe U.S. Nuclear Regulatory Commission (hereinafter called NRC) in the above penal sum forthe payment of which we bind ourselves, our heirs, executors, administrators, successors, andassigns 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 purposeof allowing a joint action or actions against any or all of us, and for all other purposes eachSurety binds itself, jointly and severally with the Principal, for the paymrent of such suin only asis set forth opposite the name of such Surety; but if no limit of liability is indicated, the limit ofliability 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 ofI 1974, has promulgated regulations in Title 10, Chapter .1 of 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 whenneeded for facility decommissioning; NOW THEREFORE, the conditions of the obligation are such that if the Principal shallfaithfully, before the beginning of decommissioning of each facility identified above, fund thestandby 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 beginfacility 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 writtenapproval 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 tofulfill the conditions described.

above. Upon notification by NRC that the Principal has failed toperform as guaranteed by this bond, the Surety shall place funds in the amount guaranteed for thefacility into the standby trust fund.The liability of the Surety shall not be discharged by any payment or succession of paymentshereunder, unless and until such payment or payments shall amount in the aggregate to the penalsum of the bond, but in no event shall the obligation of the Surety hereunder exceed the amountof said penal sumn.The Surety may cancel the bond by sending notice of cancellation by certified mail to thePrincipal and to NRC provided,

however, that cancellation shall not occur during the 90 daysbeginning on the date of receipt of the notice of cancellation by both the Principal and NRC, asevidenced by the return receipts.

The Principal may terminate this bond by sending written notice to NRC and to the Surety 90days prior to the proposed date of termination,

provided, however, that no such notice shallbecome effective until. the Surety receives written authorization.

for termination of the bond fromNRC.The Principal and Surety hereby agree to adjust the penal sum of the bond yearly so that itguarantees a new amount, provided that the penal sum does not increase by more than 20 percentin any one year and no decrease in the penal sum takes place without the written permission ofNRC.If any part of this agreement is invalid, it shall not affect the remaining provisions that willremain valid and enforceable.

In Witness Whereof, the Principal and Surety have executed this financial guarantee bond andhave affixed their seals on the date set .forth above.The persons whose signatures appear below hereby certify that they are authorized to executethis surety bond on behalf of the Principal and Surety.Principal:

HE WICAL OMP, "By: ,, 7 4 ,/L RAName J. P. ReinhardExecutive Vice President andTitle Chief Financial Officer(Corporate Seal)Corporate Surety: Safeco Insurance Company of AmericaAddress:

4634 154th Place, N.E., Adams. Bldg.,Redmond, WA 98052State of Incorporation:

Washington Liability Limit: $j,1l28356 By: _ _ _ _ _ _ _ _ _ _ _ _Name K. LideTitle: Attorney-In-Fact (Corporate Seal)Bond Premium $6,353.00

.3 ACKNOWLEDGMENT OF SURETYSTATE OF MICHIGANCOUNTY 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 sheis an Attorney-in-Fact of Safeco Insurance Company of America andknows the corporate seal thereof-;

that the seal affixed to said annexed instrument is suchcorporate seal, and was thereto affixed by authority of the Power of Attorney of saidCompany, of which a Certified Copy is hereto attached, and that she signed saidinstrument as an Attorney-in-Fact of said Company by like authority.

Acknowledged and Sworn to before meon the date above writtenMy Commission ExpiresLatrecia R. ScottNotary Public. Wayne County, MichiganMy Commission Expres,:

March 17, 2005C ;oý (yarnly Ptibl 0OIMPORTANT NOTICE TO SURETY BOND CUSTOMERS REGARDING THE TERRORISM RISK INSURANCE ACT OF 2002As 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 isour 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 certainsurety 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 ofterrorism that exceed a statutorily established deductible to be paid by the insurance companyproviding the bond. The Act also establishes a $100 billion cap for the total of'all losses to be paidby all insurers:

for certified acts of terrorism.

Losses on some or all of your bonds may be subject tothis 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 anygenerally applicable rules of law.At this time, there is no premium charge resulting from this Act.

SAF E CoPOWEROF ATTORNEY*.-.FECO INSURANCE COMPANY OF AMERICAGENERAL iNSURANCE COMPANY OF AMERICAHOME OFFICE: SAFECO PLAZASEATTLE.

WASHINGTON 9.1B5No. 7083KNOW 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,

.........

..... ...... .. ...............

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 andthese presentsthis I thCHRISTINE MEAD, SECRETARY day of June 2002MIKE MCGAVICK.

PRESIDENT CERTIFICATE Extract from ,he By-Laws of SAFECO INSURANCE COMPANY OF AMERICAand 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 thatpurpose 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 toetectle 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 anyinstrument making or evidencing such appointment, tfhe signatures may be affixed by tacaimile.

On any instrument conferring such authority or on any bond orunderlaking cf the compan, ".!ýe seat. or a farcsimile

thereof, ma-y te impressed ow affixed or in any other manner reproduced;

provided, however, that the Seal shall notbe necessary to.the valijity of any such instrument or undertaking.,

Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICAand 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, and6ii) 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 thatUhe 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 trueanj 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.17 thday of June 2003CHRISTINE MEAD. SECRETARY S097 iSAEF 210i(D A registcred lradenmark of S-SFECO Co'cofaz;Oon 06,1112002 POF SURETY BON. 0Date bond executed:

June 1.7, 2003Effective date:April 30, 2003Principal:

The Dow Chemical Company.

2030 Dow Center, Midland.

Michigan 48674Type of organization:

Corporation State of incorporation:

DelawareNRC license numbers, namne and address of facilities, and amounts for decommissioning activities guaranteed by this bond:NRC License 21-00265-06 The Dow Chemical CompanyH&ES Industrial Hygiene1803 BuildingMidland, MI 48640Unsealed

= $846,267Sealed = $84,628Suretyr:Safeco Insurance Company of AmericaType of organization:

Corporation 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: 6210358Total penal sum of bond: $930,895Know all persons by these presents, that we, the Principal and Surety hereto, are firmly bound tothe U.S. Nuclear Regulatory Commission (hereinafter called NRC) in the above penal sum forthe payment of which we bind ourselves, our heirs, executors, administrators, successors, andassigns 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 purposeof allowing ajoint action or actions against any or all of us, and for all other purposes eachSurety binds itself, jointly and severally with the Principal, for the payment of such sum only asis set forth opposite the name of such Surety; but if no limit of liability is indicated, the limit ofliability 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'ofI 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 anapplicant

ýfor a facility license provide financial assurance that funds will be available whenneeded for facility decommissioning; NOW THEREFORE, the conditions of the obligation are such that if the Principal shallfaithfully, before the beginning of decommissioning of each facility identified above, fund thestandby 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 beginfacility 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 writtenapproval of such assurance, within 30 days after the date a notice of cancellation from the Suretyis 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 tofulfill the conditions described above. Upon notification by NRC that the Principal has failed toperform as guaranteed by this bond, the Surety shall place funds in the amount guaranteed for thefacility into the standby trust fund.The liability of the Surety shall not be discharged by any payment or succession of paymentshereunder, unless and until such payment or payments shall amount in the aggregate to the penalsum of the bond, but in no event shall the obligation of the Surety hereunder exceed the amriountof said penal sum.The Surety may cancel, the bond by sending notice of cancellation by certified mail to thePrincipal and to NRC provided,

however, that cancellation shall not occur during the 90 daysbeginning on the date of receipt of the notice of cancellation by both the Principal and NRC, asevidenced by the return receipts.

The Principal may terminate this bond by sending wtitten notice to NRC and to the Surety 90days prior to the proposed date of termination.,

provided, however, that no such notice shallbecome effective until the Surety receives written authorization for termination of the bond fromNRC.The Principal and Surety hereby agree to adjust the penal sum of the bond yearly so that itguarantees a new amount, provided that the penal sum does not increase by more than 20 percentin any one year and no decrease in the penal sum takes place without the written permission ofNRC.If any part of this agreement is invalid, it shall not affect the remaining provisions that willremain valid and enforceable.

i In Witness Whereof, the Principal and Surety have executed this financial guarantee bond andhave affixed their seals on the date set forth above.The persons whose signatures appear below hereby certify that they are authorized to executethis surety bond on behalf of the Principal and Surety.Principal:

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

Name J. P. ReinhardEbxecutive Vice President andTitle Chief Financial Officer(Corporate Seal)Corporate Surety: Safeco Insurance Company of AmericaAddress:

4634 154th Place, .N.E., Adams Bldg.,Redmond, WA 98052State of Incorporation:

Washington Liability Lit: $930 895By: _i .,,J-,Name K. LideTitle: Attorney-In-Fact (Corporate Seal)Bond Premium $5,241.00 3

C)ACKNOWLEDGMENT OF SURETYSTATE OF MICHIGANCOUNTY 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 sheis an Attorney-in-Fact of Safeco Insurance Company of America .andknows the corporate seal thereof; that the seal affixed to said annexed.

instrument is suchcorporate seal, and was thereto affixed by authority of the Power of Attorney of saidCompany, of which a Certified Copy is hereto attached, and that she signed saidinstrument as an Attorney-in-Fact of said Company by like authority.

Acknowledged and Sworn to before meon the dare above writtenMy Commission ExpiresLo t.ýeei a R. Se LiltNotary ?ib:kc, Waync County. MichiganMy Commission Expircs:

March 17. 2005ý(Noaryv Pziblh IMPORTANT NOTICE TO SURETY BOND CUSTOMERS REGARDING THE TERRORISM RISK INSURANCE ACT OF 2002As 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 isour 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 certainsurety 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 ofterrorism that exceed a statutorily established deductible to be paid by the insurance companyproviding the bond. The Act also establishes a $100 billion cap for the total of all losses to be paidby all insurers for certified acts of terrorism.

Losses on some or all of your bonds may be subject tothis 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 anygenerally applicable rules of law.At this time, there is no premium charge resulting from this Act.

~SAFECO'POWEROF ATTORNEYSAFECO INSURANCE COMPANY OF AMERICAGENERAL INSURANCE COMPANY OF AMERICAHOME OFFICE: SAFECO PLAZASEATTLE, WASHINGTON 9s185No. 7083KNOW ALL BY THESE PRESENTS:

That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY:OF AMERICA.

each a Washington corporation, does each herebyappoint...... ; .....................................

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 andatlested these presentsthis IthhCHRISTINE MEAD, SECRETARY day of June , 2002MIKE MCGAVICK, PRESIDENT CERTIFICATE Extract from the By-Laws of SAFECO INSURANCE COMPANY OF AMERICAand 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 thatpurpose 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 toexecute 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 anyinstrument making or evidencing such appointment.

the signatures may be afrixed by facsimile.

On any instrument conferring such authority or on any bond orundertaking

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 notbe necessary to the validity of any such instrument or undertaking."

Exttrct from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICAand 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 ims in 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 thatthe 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 trueand 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 this17thday of Jiu ne2003CHRISTINE MEAD, SECRETARY S.0S;4,SAEF 201fD A, regisnreid tradernati of SAFECO Corptiriton 063/1112002 POF