07/03/2003
COMEX ALUMINUM AND COPPER STORAGE INSURANCE
The COMEX Division of the New York Mercantile Exchange, Inc. (“Exchange”) has insurance coverage for copper and aluminum stored in Exchange Licensed Warehouses. The policy covers all copper on -warrant in approved warehouses and aluminum on-warrant (i.e. aluminum which meets the standards for delivery as stated in the COMEX Aluminum Futures Contract Rules and for which a COMEX warehouse receipt (“warrant”) has been issued) in approved warehouses. Terms of the policy are as follows:
| EFFECTIVE DATE: 6/30/2003 | EXPIRATION DATE: 6/29/2004 | |
| LONDON BROKER: Marsh Ltd Tower Place London EC3R 5BU United Kingdom |
BROKER: Marsh USA Inc. 1166 Avenue of the Americas New York, New York 10036-2774 Phone: 212-345-6847 Fax: 212-345-4854 |
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| COVERAGE: | The policy insures aluminum on-warrant and copper on-warrant while it is: | |
| a) in a warehouse licensed by Commodity Exchange Inc. in the Continental United States, and | ||
| b) in transit, where required, anywhere in the Continental United States and/or the World. | ||
| POLICY LIMITS: | 1) US $200,000,000 any loss any one warehouse and/or location. | |
| 2) US $5,000,000 any one loss any one steamer and/or conveyance. | ||
| Against all risks of direct physical loss of or damage to, or destruction or mysterious disappearance of property insured from any cause whatsoever, including but not limited to strikes, riots, civil commotions, as well as infidelity of warehouses and/or warehouse employees. | ||
| POLICY SUB-LIMITS: | 1) Mysterious Disappearance (i.e. the unexplained loss of material from Unknown causes) - US $10,000,000 any one claim/any one event. | |
| 2) Infidelity of warehouses and/or warehouse employees -US $25,000,000 any one claim/any one event. | ||
| DEDUCTIBLE: | None. | |
| LOSS- VALUATION: | Valued at the highest of the following- | |
| a) Cost to the warehouse receipt holder plus 10%. | ||
| b) Warehouse receipt holder’s sales invoice plus 10%. | ||
| c) Market value plus 10%. | ||
| WARRANTS: | Commodity Exchange Inc. warehouse receipts (i.e. warrants) are deemed to be proof of the existence of the insured commodity. | |
| LOSS PAYEE: | Claims are settled on the basis of ownership of the insured commodity at the time of the loss. | |
| SUBROGATION: | Underwriters expressly waive any right of subrogation against the Named Assured. | |
| MONTHLY RATES: | US $0.021321 per US $100 of value at risk. When premium exceeds US $150,000 gross the rate is reduced to US $0.019562 per US $100 of value at risk. | |
| EXCLUSIONS: | Acts of Terrorism; War Risk Exclusion : Nuclear Exclusion. | |