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[FINANCIAL MANAGEMENT ALBERTA LTD. LETTERHEAD]
February 10, 1998
Ms. Mitzi Murray
Futurelink Distribution
Corporation
550 603 - 7 Ave S W
Calg AB T2P 2T5
Re: Policy# GU-1389055 (COMMERCIAL POLICY)
Effective December 1, 1997 to December 1, 1998
Dear Mitzi:
We are pleased to enclose an endorsement for attachment to the above captioned
policy, amending the following:
1. Increasing contents limit to $100,000.
2. Increasing computer equipment limit to $750,000.
3. Increasing extra expense limit to $50,000.
4. Increasing Tenants Legal Liability to $250,000.
5. Adding Innterode Inc. as additional named insured.
These amendments resulted in an additional premium of $863.00 as per our
enclosed invoice. The total premium owing on your account is $1,113.00. Your
prompt attention to this matter is appreciated.
I trust you will find the enclosed in order. If you have any questions or
concerns, please do not hesitate to contact our office.
Thanking you, once again, for your continued support.
Yours truly,
[sig]
John Simonot
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COMMERCIAL INSURANCE [GUARDIAN LOGO]
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POLICY DECLARATIONS Policy No. CIP 139055
GUARDIAN INSURANCE COMPANY OF CANADA
HEAD OFFICE: 181 UNIVERSITY AVE., TORONTO, ON M5H 3M7
HEREINAFTER CALLED THE INSURER
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The Policy Declarations together with the Supplementary Declarations, Policy
Conditions, forms, riders and endorsements forming a part thereof, complete the
Policy.
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This Document is issued as evidence of: MISCELLANEOUS OR MULTIPLE CHANGE(S)
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Agent/ FINANCIAL MANAGEMENT ALTA. LTD
Broker 100 6001 1A ST. S.W.
CALGARY, ALBERTA T2H0G5 Agent/Broker No. 0168
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Name of FUTURELINK DISTRIBUTION CORP. AND INNTERNODE INC., A WHOLLY
Insured OWNED SUBSIDIARY OF FUTURELINK DISTRIBUTION CORPORATION
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The Named Insured is: CORPORATION
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Postal #550, 603 - 7 AVENUE S.W.
Address of CALGARY
Insured ALBERTA T2P 2T5
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Policy Day Month Year Day Month Year
Period From 29 01 1998 To 01 12 1998
12:01 a.m. standard time at the postal address of the Named
Insured stated herein.
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Loss Refer to the Declarations & form 11407 attached for
if Any, mortgagees or loss payees.
Payable to (The standard mortgage clause printed on form 11410 is
applicable to building(s) only.)
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The insurance provided is only with respect to such of the
following classes of insurance as are indicated by specific
premium charge. Refer to the attached Supplementary
Insurance Declarations for specific kind of coverages, amounts of
Afforded insurance, type of forms applicable and premiums for each
insured location. These premiums may be subject to
adjustment.
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CLASS OF INSURANCE PREMIUM $
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Section 1- Fire and Extended Coverage Insurance
Section 2- Multi-Peril Insurance 226
Section 3- Inland Marine Insurance 1,320
Section 4- Crime Insurance 250
Section 5- Liability Insurance 638
Section 6- Glass Insurance
Section 7- Boiler & Machinery Insurance
Section 8- Miscellaneous Insurance Coverages
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Total Annual Premium 2,434
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PREMIUM FOR THIS TRANSACTION 863
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THIS POLICY CONTAINS A CLAUSE THAT MAY LIMIT THE AMOUNT PAYABLE
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IN WITNESS WHEREOF the Insurer has duly executed this policy, provided,
however, that this policy shall not be valid or binding unless countersigned by
a duly Authorized Representative of the Insurer.
[sig] [sig]
----------------------------------
President Authorized Representative
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(01/97) PAGE 1
3
COMMERCIAL INSURANCE [GUARDIAN LOGO]
==================================================================================================================================
POLICY DECLARATIONS Policy No. CIP 1389055
Name of Insured: Risk location no. 1
FUTURELINK DISTRIBUTION CORP. AND INNTERNODE INC., A WHOLLY #550. 603 - 7 AVENUE S.W.
OWNED SUBSIDIARY OF FUTURELINK DISTRIBUTION CORPORATION CALGARY
ALBERTA
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Construction: FIRE-RESISTIVE T2P 2T5
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Business conducted by Insured at the risk location Loss, if any, payable to:
(Absence of entry denotes
loss payable to Insured)
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COMPUTER & INTERNET PROGRAMMING THE MANUFACTURERS LIFE
INSURANCE COMPANY
By others as: 350 - 6 AVENUE S.W.
CALGARY ALBERTA T2P 0G2
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INSURANCE IS PROVIDED FOR ONLY FOR THOSE COVERAGES FOR WHICH A SPECIFIC AMOUNT OF INSURANCE OR SPECIFIC INDICATIONS OF COVERAGE IS
STATED HEREUNDER.
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Class & Coverage Co-Insurance + Deductible $ Stated Replacement Inflation Earthquake Amounts of Rate Premium $
Form # Codes % Amount Cost Protection Damage Insurance $
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Fire &
E.C.
- -------- B [ ] [ ] [ ] [ ]
E [ ] [ ] [ ]
S [ ]
APB [ ] [ ] [ ]
ACB [ ] [ ]
BR As per paragraph 2 (A) of form [ ]
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Multi-
Peril
- --------
CBF [ ] [ ] [ ] [ ]
11088 OCF 90 500 [ ] [X] [ ] 100,000 .100 100
BR As per paragraph 3 (A) of form [ ]
BCBF [ ] [ ] [ ] [ ]
CPF [ ] [ ] [ ]
And also ) 9(B) $ 8(C) $ 3(D) $
as per ) (as per paragraph
paragraphs ) 9(E) $ 9(F) $ of form 3(A) of form)
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Business Ordinary Ordinary Period
Interruption Full Payroll Limited Payroll of
- ------------ Coverage Cover Excluded Indemnity
-------------------------------------------------
RI see form
ME see form
GE [ ] [ ] [ ] see form
PFTS see form [ ] [ ] months
11104 EE see form 50,000 .252 126
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Inland Deductible $
Marine ------------
- -------
11125 VALUABLE PAPERS 500 250,000 150
11128 MISCELLANEOUS FORM (BROAD) 1,000 12,000 3.500 420
11411 (PART "C" COMPUTER SYSTEMS PROTECTION) SEE DEC SEE CSP DEC .100 750
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Crime Description of Coverage
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Inside, Outside Robbery: (A) Inside Robbery
(B) Outside Robbery
Damage to building by Burglary/Robbery
Stock Burglary
Safe Burglary
11138 Money and Securities: (A) Inside Loss 10,000 250
(B) Outside Loss 10,000 INCL
Comprehensive Dishonesty and Forgery See Crime
Scheduled Fidelity Coverage Declarations
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Liability
- ---------
11404 SECTION 5 - LIABILITY INSURANCE (PART "A") See Liability 638
Declarations
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Miscellaneous Deductible $
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* Earthquake deductible: % or amount $
Glass Insurance
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(01/97) DEFINITIONS OF COVERAGE CODES USED ABOVE ARE PRINTED ON FORM 11410 TOTAL PREMIUM THIS PAGE 2,434
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PAGE 2
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COMMERCIAL INSURANCE [GUARDIAN LOGO]
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SUPPLEMENTARY DECLARATIONS POLICY NO. CIP 1389055
SECTION 3 - INLAND MARINE INSURANCE (PART "C" - COMPUTER SYSTEMS PROTECTION)
Effective Date 29/01/98
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Loss, if any, payable as follows: Risk location no. 1
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#550, 603 - 7 AVENUE S.W.
CALGARY
ALBERTA
T2P 2T5
(absence or entry denotes loss payable to the insured)
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INSURANCE IS PROVIDED FOR ONLY THOSE COVERAGES FOR WHICH FORMS ARE ATTACHED AND A SPECIFIC AMOUNT OF INSURANCE OR SPECIFIC
INDICATION OF COVERAGE IS STATED HEREUNDER.
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Co-
Form No. Description of Coverages Insurance Deductible Amount of insurance $ Premiums $
11114 %
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SYSTEMS HARDWARE & EQUIPMENT
Primary cover 90 1,000 750,000 750
Difference in Conditions Cover
ITEM 1 * [ ] Actual Cash Value
* [X] Replacement Cost
* [ ] Stated Amount
* (see clause 9 & 10 of items No. 1 in form)
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ACTIVE SYSTEMS MEDIA
ITEM 2 [ ] Valued items
(if checked see list of specified items attached)
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VALUABLE PAPERS AND RECORDS
ITEM 3 [ ] Valued items
(if checked see list of specified items attached)
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ITEM 4 ACCOUNTS RECEIVABLE
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EXTRA EXPENSE
ITEM 5 Period of indemnity not to Exceed ------------------------------------------> days
48 hours waiting period applicable to item #5
(see clause 7 of item 5 in form #11114)
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BUSINESS INTERRUPTION
ITEM 6 48 hours waiting period applicable to item #6 per working day
(see clause 8 of item 6 in form #11114) for days
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ENDORSEMENT AND OTHER SPECIAL CONDITIONS
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DEDUCTIBLE CLAUSE:
-----------------
DEDUCTIBLE AMOUNT UNDER ALL ITEMS OF FORM NO. 11114 IS $1,000 IN RESPECT TO LOSS OR DAMAGE CAUSED BY ELECTRICAL
OR MECHANICAL BREAKDOWN OR $500 IN RESPECT TO LOSS OR DAMAGE CAUSED BY ANY OTHER INSURED PERIL.
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(03/97) Total Premium This Page 750
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PAGE 3
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COMMERCIAL INSURANCE [GUARDIAN LOGO]
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STANDARD MORTGAGE CLAUSE
(approved by The Insurance Bureau of Canada)
(applicable to Buildings only - Excluding Quebec)
IT IS HEREBY PROVIDED AND AGREED THAT:
1. Breach of Conditions by Mortgagor, Owner or Occupant - This insurance and
every documented renewal thereof - AS TO THE INTEREST OF THE MORTGAGEE ONLY
THEREIN - is and shall be in force notwithstanding any act, neglect, omission
or misrepresentation attributable to the mortgagor, owner or occupant of the
property insured, including transfer of interest, any vacancy or non-occupancy,
or the occupancy of the property for the purposes more hazardous than specified
in the description of the risk;
PROVIDED ALWAYS that the Mortgagee shall notify forthwith the Insurer (if
known) of any vacancy or non-occupancy extending beyond thirty (30) consecutive
days, or of any transfer of interest or increased hazard THAT SHALL COME TO HIS
KNOWLEDGE; and that every increase of hazard (not permitted by the policy)
shall be paid for by the Mortgagee - on reasonable demand - from the date such
hazard existed, according to the established scale of rates for the acceptance
of such increased hazard, during the continuance of this insurance.
2. Right of Subrogation - Whenever the Insurer pays the Mortgagee any loss
award under this policy and claims that - as to the Mortgagor or Owner - no
liability therefor existed, it shall be legally subrogated to all rights of the
Mortgagee against the Insured; but any subrogation shall be limited to the
amount of such loss payment and shall be subordinate and subject to the basic
right of the Mortgagee to recover the full amount of its mortgage equity in
priority to the Insurer; or the Insurer may at its option pay the Mortgagee all
amounts due or to become due under the mortgage or on the security thereof, and
shall thereupon receive a full assignment and transfer of the mortgage together
with all securities held as collateral to the mortgage debt.
3. Other Insurance - If there be other valid and collectible insurance upon
the property with loss payable to the Mortgagee - at law or in equity - then
any amount payable thereunder shall be taken into account in determining the
amount payable to the Mortgagee.
4. Who May Give Proof of Loss - In the absence of the Insured, or the
inability, refusal or neglect of the Insured to give notice of loss or deliver
the required Proof of Loss under the policy, then the Mortgagee may give the
notice upon becoming aware of the loss and deliver as soon as practicable the
Proof of Loss.
5. Termination - The term of this mortgage clause coincides with the term of
the policy;
PROVIDED ALWAYS that the Insurer reserves the right to cancel the policy as
provided by Statutory provision but agrees that the Insurer will neither
terminate nor alter the policy to the prejudice of the Mortgagee without the
notice stipulated in such Statutory provision.
6. Foreclosure - Should title or ownership to said property become vested in
the Mortgagee and/or assigns as owner or purchaser under foreclosure or
otherwise, this insurance shall continue until expiry or cancellation for the
benefit of the said Mortgagee and/or assigns.
SUBJECT TO THE TERMS OF THIS MORTGAGE CLAUSE (and these shall supersede any
policy provisions in conflict therewith BUT ONLY AS TO THE INTEREST OF THE
MORTGAGEE), loss under this policy is made payable to the Mortgagee.
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DEFINITIONS OF COVERAGE CODES
Fire and Extended Coverage Section:
B - Building, E - Equipment, S - Stock in trade,
APB - All Property (Blanket), ACB - All Contents (Blanket),
BR - Builders Risk.
Multi-peril Section:
CBF - Commercial Building Form, OCF - Office Contents Floater,
BR - Builders Risk, BCBF - Building & Contents Broad Form,
CPF - Commercial Property Floater.
Business Interruption Section:
RI - Rental Income, ME - Monthly Earnings, GE - Gross Earnings,
PFTS - Profits, EE - Extra Expense.
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TERMINATION OF POLICY NO. CIP 1389055
Day Month Year
Date of Termination
-------------------------
Date of Policy
-------------------------
Time in Force Days
-------------------------
Whole Premium $
------------------------
Premium Earned $
------------------------
Rebate $
------------------------
Please state whether PRO RATA or SHORT RATE and why:
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Return Premium
-------------------------------
Agent/Broker
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Signature Date
In Consideration of Dollars,
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return Premium, the receipt of which is hereby acknowledged, this policy is
terminated and surrendered to the INSURER, and Interim and Renewal
Certificates, (if any), for same, acknowledged to be of no effect.
Insured.
----------------------
PAYEE, (IF ANY), MUST
DISCHARGE INTEREST
Payee.
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PAGE 4
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COMMERCIAL INSURANCE [GUARDIAN LOGO]
_______________________________________________________________________________
SUPPLEMENTARY DECLARATIONS POLICY NO. CIP 1389055
SECTION 5 - LIABILITY INSURANCE (PART "A") Effective Date 29/01/1998
_______________________________________________________________________________
INSURANCE IS PROVIDED FOR ONLY THOSE COVERAGES FOR WHICH FORMS ARE ATTACHED AND
SPECIFIC LIMITS OF INSURANCE OR SPECIFIC INDICATION OF COVERAGE ARE STATED
HEREUNDER. OUR LIMIT OF INSURANCE AGAINST EACH SUCH COVERAGE SHALL BE AS STATED
HEREIN, SUBJECT TO ALL THE TERMS OF THIS POLICY HAVING REFERENCE THERETO.
_______________________________________________________________________________
SCHEDULE NO. 1 (Forms, coverages and limits of insurance)
_______________________________________________________________________________
Form No. Coverage and Limits of Insurance
_______________________________________________________________________________
11550 COMMERCIAL GENERAL LIABILITY $ 2,000,000
Each Occurrence Limit $ 2,000,000
Products-Completed Operations Aggregate Limit $ 2,000,000
Personal Injury Limit $ 2,000,000
Tenants Legal Liability Limit $ 250,000 any one premises
/X/ Broad Form (/X/ check where coverage applicable)
Medical Expense Limit $ 10,000 any one person
11158 Non-Owned Automobile $ 2,000,000 Inclusive limit for bodily injury
and property damage combined
______________________________________________________________________________________________________________________________
SCHEDULE NO. 1A (deductibles)
______________________________________________________________________________________________________________________________
Coverage A - Bodily Injury Liability $ per claim $ per occurrence
- Property Damage Liability $ per claim $ 500 per occurrence
- Bodily Injury Liability and $ per claim $ per occurrence
Property Damage Liability combined
Enter below any limitations on the application of the deductibles. If no
limitation is entered, the deductibles apply to compensatory damages for
all "Bodily Injury" and/or "Property Damage", however caused:
_______________________________________________________________________________
SCHEDULE NO. 2 (Additional coverages)
_______________________________________________________________________________
The following additional coverages are included where indicated by /X/
/ / Employers' Bodily Injury Liability / / Voluntary Compensation
/ / Garage Liability
_______________________________________________________________________________
SCHEDULE NO. 3 (Description of operations - premises if different from Policy
Declarations)
_______________________________________________________________________________
COMPUTER & INTERNET PROGRAMMING
_______________________________________________________________________________
SCHEDULE NO. 4 (Premium, including rating basis and additional endorsements)
_______________________________________________________________________________
Code No. Premium Basis Rate $ Advance Premium $
_______________________________________________________________________________
6610 REVENUE 225,000 2.444 PER 1,000 REVENUE 550
2222 LIMIT OF INS. 250,000 .025 PER $100 OF INSURANCE 63
(TLL)
1111 FLAT CHARGE(NOA) 25
_______________________________________________________________________________
The following endorsements are attached to this form:
EXCLUSION - ERRORS & OMISSIONS INSURANCE
_______________________________________________________________________________
MINIMUM PREMIUM $638 TOTAL ADVANCE PREMIUM THIS PAGE $638
_______________________________________________________________________________
PAGE 5
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COMMERCIAL INSURANCE [GUARDIAN LOGO]
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CLAUSES/ENDORSEMENTS POLICY NO. CIP 1389055
Agent/Broker Name: No.
FINANCIAL MANAGEMENT ALTA. LTD 0168
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Name of Insured: FUTURELINK DISTRIBUTION CORP. AND INNTERNODE INC., A WHOLLY
OWNED SUBSIDIARY OF FUTURELINK DISTRIBUTION CORPORATION
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Effective Date: 29/01/1998
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OVERNIGHT LIMITATION
THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING:
BROAD FORM MONEY AND SECURITIES #11138
THE AMOUNT OF INSURANCE IN RESPECT TO BROAD FORM MONEY AND SECURITIES FORM
11138. INSIDE PREMISES, IS REDUCED TO $500 WHILST THE PREMISES ARE CLOSED
FOR BUSINESS.
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PAGE 7
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COMMERCIAL INSURANCE [GUARDIAN LOGO]
CLAUSES/ENDORSEMENTS POLICY NO. CIP 1389055
Agent/Broker Name: No.
FINANCIAL MANAGEMENT ALTA, LTD 0168
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Name of Insured: FUTURELINK DISTRIBUTION CORP. AND INNTERNODE INC., A WHOLLY
OWNED SUBSIDIARY OF FUTURELINK DISTRIBUTION CORPORATION
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Effective Date: 29/01/1998
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EXCLUSION - ERRORS AND OMISSIONS
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE FORM #11550
This insurance does not apply to "bodily injury", "property damage" or
"personal injury" arising out of:
1. The rendering of or failure to render any professional services by or
for you including:
(a) The preparing, approving, or failing to prepare or approve maps,
drawings, opinions, reports, surveys, change orders, designs or
specifications; and
(b) Supervisory, inspection or engineering services of engineers,
architects and surveyors.
2. The rendering or failure to render any professional services by or for
you in the performance of any claim, investigation, adjustment,
appraisal or audit service.
3. The rendering or failure to render any of the following designated
professional services by you or for you:
COMPUTER & INTERNET PROGRAMING