Agmt07 Suarez & Munoz Construction, Inc.

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CONTRACTORS BONDING AND INSURANCE COMPANY NOTICE -TERRORISM COVERAGE FOR CERTIFIED ACS'S OF TERRORISM NOTICE - NO PREMIUM CHARGE This Notice is required pursuant to the federal Terrorism Risk Insurance Act of 2002. For renewing policies of insurance, this Notice applies upon renewal too unless superseded by a written notice specifically so providing. There is no need to respond to this Notice. You are hereby notified that under the Terrorism Risk Insurance Act of 2002 (the "Act"), effective November 26, 2002, you now have a right to purchase insurance coverage for losses arising out of acts of terrorism,. as defined in Section 102(1) of the Act. Under the Act, the term "act of terrorism" means any act that. is certified by the Secretary of the Treasury, in concurrence with the Secretary of State, and the Attorney General of the United States - to be an act of terrorism; to be a violent actor an act that is dangerous to human life, property, or infrastructure; to have. resulted in damage within the United States, or outside the United States in the case of an air carrier or vessel or the premises of a United States mission; and to have been committed by an individual or individuals acting on behalf of any foreign person or foreign inte~ est, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. No act of terrorism can be certified, however, if resulting property and casualty insurance losses in the aggregate do not exceed $5,000,000. In this Notice, we refer to an act of terrorism covered under the Act as a certified act of terrorism. We have decided to provide insurance coverage for certified acts of terrorism only at no charge, even though by federal law we are only required to notify you of your right to purchase the coverage. Our Policy contains an exclusion of losses caused by terrorism; but the Act provides an exception from that exclusion for losses resulting from a certified act of terrorism. Non-certified acts of terrorism remain excluded in our Policy, and the Policy's other provisions still apply to any certified act of terrorism. This Notice may also serve as an endorsement when attached to our Policy if there is no other specific endorsement contained in our Policy dealing with coverage for a certified act of terrorism. Additional Information for Policyholders with policies providing fire insurance in the States of: Arizona, California, Idaho, Oregon and Washington The existing terrorism exclusion makes: an exception'for (and thereby continues coverage for) fire losses resulting from terrorism. Therefore, the coverage in our Policy for such fire losses will continue. DISCLOSURE OF FEDERAL PARTICIl'ATION IN PAYMENT OF TERRORISM LOSSES Coverage provided by our Policy for losses caused by certified acts of terrorism is partially reimbursed by the United States under a formula established by the Act. Under this formula, the United States pays 90% of covered terrorism losses exceeding the statutorily established deductible paid by us as the insurance company providing the coverage. The premium charge by us for this coverage for certified acts of terrorism is zero. There maybe a charge at some future point in time if the Federal Government pays a loss for the portion of loss covered by the Federal Government under the Act. Form 1 NotT'ERR.O t -US 012203