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XXXII. Coverage Extension: Spoilage <br />The following Coverage Extension is added to Part A.6. (Section I — Property): <br />Subject to a per occurrence Limit of $10,000, Section I — Property is extended to insure against direct <br />physical loss of or damage to "perishable stock" due to "Breakdown or Contamination" or "Power <br />Outage" while maintained in a refrigerated storage unit at the Described Premises. <br />"Perishable stock" is food or beverage: <br />(1) Owned by you and used in your business; or <br />(2) Owned by others that is in your care, custody or control except as otherwise provided in <br />Loss Payment Property Loss Condition E.5.d.(3)(b); <br />"Breakdown or Contamination" means: <br />(1) Change in temperature or humidity resulting from "mechanical breakdown" or "mechanical <br />failure" of refrigerating, cooling or humidity control apparatus or equipment, while located <br />at the Described Premises; or <br />(2) Contamination by a refrigerant while the refrigerating apparatus or equipment is at the <br />Described Premises. <br />"Mechanical breakdown" and "mechanical failure" do not include power interruption. <br />"Power outage" means change in temperature or humidity resulting from complete or partial <br />interruption of electrical power due to conditions beyond your control. <br />With respect to this Spoilage coverage: <br />(1) Paragraph A.6. Coverage Extensions in Section I — Property does not apply. <br />(2) Paragraph B.I. Exclusions in Section I — Property is deleted and only the following exclusions <br />apply to Spoilage Coverage: We will not pay for loss or damage caused directly or indirectly by <br />any of the following, whether or not the loss event results in widespread damage or affects a <br />substantial area, and regardless of any other cause or event that contributes concurrently or in <br />any sequence to the loss: <br />(a) Earth Movement; <br />(b) Governmental Action; <br />(c) Nuclear Hazard; <br />(d) War And Military Action; <br />(e) Water; <br />(f) The disconnection of any refrigerating, cooling or humidity control system from the source <br />of power. <br />(g) The deactivation of electrical power caused by the manipulation of any switch or other <br />device used to control the flow of electrical power or current. <br />(h) The inability of an electrical utility company or other power source to provide sufficient <br />power due to lack of fuel or governmental order; <br />(i) The inability of a power source at the Described Premises to provide sufficient power due to <br />lack of generating capacity to meet demand; or <br />(j) Breaking of any glass that is a permanent part of any refrigerating, cooling or humidity <br />control unit. <br />(3) We will pay the amount of loss or damage that exceeds the deductible, up to the applicable <br />Limit. <br />(4) The following applies to determine the value of "perishable stock": <br />(a) For "perishable stock" you have sold but not delivered, the selling price less discounts and <br />expenses you otherwise would have had; <br />(b) For other "perishable stock", actual cash value. <br />MC BOP RES BROADEND 07 19 <br />ATTY/AGR.2025.207/A Pa Pe, Inc. (2616 Broadway) (Page 30 of 55) <br />Page 11 of 17 <br />