Washington State Transit Insurance Pool Blanket Pollution Insurance March 26, 2010

1. Washington State Transit Insurance Pool Blanket Pollution Insurance March 26, 2010

2. Blanket Pollution Policy - Specifics Carrier: ACE Dates: 4/4/09 to 4/1/12 WSTIP Limits $5,000,000 Per Pollution Condition $5,000,000 Policy Aggregate (3 Years) WSTIP SIR $100,000 Claim Trigger Claims Made Retro Date None Primary Coverage Yes Covered Locations Yes Operations Yes Right & Duty to Defend Yes Defense Inside Limit Yes Hammer Clause None Territory USA

3. WSTIP Ben Franklin Clallam Grant Grays Harbor Intercity Island Jefferson Kitsap Twin Mason Pacific Skagit Community Spokane Valley Whatcom Blanket Pollution Policy – Participating Members

4. Blanket Pollution Policy – Overview • This is a Liability Policy (Not a Discovery Policy) • Third Party Claims • Government Actions • Policy Coverage Sections • Covered Locations Coverage • Operations Coverage

5. Blanket Pollution Policy – Covered Location Coverage • “Claims” and associated “Legal Defense Expenses” arising out of a “Pollution Condition” on or under or migrating for a “Covered Location” • Coverage applies to “Pollution Conditions” that first commence, in whole or in part, during or prior to the “Policy Period”. • “Claim” must be reported to the insurer, in writing, during the “Policy Period” (Claims Made Provision)

6. Blanket Pollution Policy – Covered Location Coverage • What is a Covered Location? • Any location owned, operated, managed, leased or maintained by the Insured upon the inception date of the policy 4/4/09 • Some Newly Acquired Properties – (Automatic Acquisition Coverage) • Properties that have had a clean Environmental Due Diligence within 90 days of Acquisition • Park & Rides acquired after inception and not reported do not receive Prior Coverage • Otherwise new acquisitions must be reported, endorsed (including additional premium) to obtain full Covered Location status

7. Blanket Pollution Policy – Operations Coverage • “Claims” and associated “Legal Defense Expenses” arising out of a “Pollution Condition” resulting from “Covered Operations” • “Claim” must be reported to the insurer, in writing, during the “Policy Period” (Claims Made Provision) Coverage applies to “Pollution Conditions” that first commence, in their entirety after the Policy Inception Date.

8. Blanket Pollution Policy – Operations Coverage • Covered Operations of the Insured • Spraying Operations • Street Construction • Repair Services • Utility Construction & Repair Services • Refuse Collection Operations • Transportation– Includes waste hauling by others engaged in the business of transporting property for hire.

9. Blanket Pollution Policy – Major Exclusions – UST’s • Underground Storage Tanks (UST’s) – Storage tank and any associated piping and appurtenances connected thereto which storage tank has more than 10% of its volume below ground. • Exclusion –“Pollution Conditions” arising from or related to an “Underground Storage Tank”

10. Blanket Pollution Policy – Major Exclusions • Asbestos & Silica • Divested Property • Employers Liability • Fines and Penalties • First Party Property Damage • Fungi • Insured vs. Insured

11. Blanket Pollution Policy – Major Exclusions • Intentional Non-Compliance & Regulatory Compliance • Know Conditions – Has Responsible Insured Provision • Landfills & Recycling Facilities – Includes “Covered Locations” • Lead Based Paint • Naturally Occurring Materials

12. Blanket Pollution Policy – Major Exclusions • Non-Owned Disposal Sites • Products Liability • Vehicles • War & Terrorism

13. Blanket Pollution Policy – Claim Reporting • Written Report - As Soon as Practical • Verbal Report – Take Reasonable Measures for Immediate Reporting • Upon the discovery of a “Pollution Condition”, the insured shall make every attempt to mitigate any loss and comply with applicable “environmental laws”. The insurer shall have the right, but not the duty, to mitigate such “Pollution Conditions” if, in the sole judgment of the insurer, the insured fails to take reasonable steps to do so. In that event, any remediation costs incurred by the insurer shall be deemed incurred by the insured, and shall be subject to the self insured retention and the limits of liability.

14. Blanket Pollution Policy - Other Conditions • Subrogation – No waiver allowed, even in advance of the claim. • Environmental Consultants – The insured will have the right and duty to retain a qualified environmental consultant to perform any investigation and/or remediation of any “pollution condition” covered under this Policy. The insured must receive the written consent of the insurer prior to the selection and retention of such consultant except in the event of an emergency response. Any costs incurred prior to such consent will not be covered under the policy or credited against the self-insured retention, except in the event of an emergency response.

15. Alliant Insurance Services Questions?

16. Alliant Insurance Services THANKS YOU! Rick Steddom – Vice President Email: rsteddom@alliantinsurance.com Phone: 949-660-8121