EXHIBIT (99-5)
Directors and Officers (Third) Excess Liability Binder of Insurance
[AWA LOGO] ALLIED WORLD ASSURANCE COMPANY, LTD.
The Bermuda Commercial Bank Building 43 Victoria Street Hamilton HM 18, Bermuda
- - TEL 441-278-5400 - FAX 441-296-3428
BINDER CONFIRMATION
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To: Marty Svenson FROM:
David Bell
COMPANY: H&H Park DATE:
June 27, 2002
ADDRESS: Bermuda NO. OF PAGES: 4
FAX NO.:
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INSURED NAME: Procter & Gamble Co.
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INSURED ADDRESS: One Procter & Gamble Plaza
Cincinnati, OH 45202
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IT IS HEREBY UNDERSTOOD AND AGREED THAT COVERAGE IS BOUND AS FOLLOWS:
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INSURANCE COMPANY: Allied World Assurance Company Ltd.
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ISSUING CARRIER: Allied World Assurance Company Ltd.
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UNDERWRITER: David Bell
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TYPE OF INSURANCE: Director's and Officer's Excess Liability
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POLICY FORM: Follow Form
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AWAC POLICY FORM: D&O DB (02/02) shortform
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POLICY TRIGGER: Claims Made
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POLICY REFERENCE (POLICY TBD
NUMBER):
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POLICY PERIOD: June 30, 2002 to June 30, 2003
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CURRENCY: United States Dollars (US$)
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COVERED LAYER LIMITS: US$ 25,000,000 PER CLAIM
US$ 25,000,000 AGGREGATE WHERE APPLICABLE
EXCESS OF
US$ 75,000,000 PER CLAIM
US$ 75,000,000 ANNUAL AGGREGATE WHERE APPLICABLE
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UNDERLYING CARRIERS: Ace US$ 25,000,000 excess of Primary
XL US$ 25,000,000 excess of US$ 25,000,000
Ace US$ 25,000,000 excess of US$ 50,000,000
EXCESS OF UNDERLYING INSURANCE AND SELF-INSURED
RETENTIONS AS LISTED IN THE LEAD POLICY.
NOTE: APPLICABLE AGGREGATE(S) IF POLICY PERIOD
EXCEEDS 365 DAYS
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AWAC PARTICIPATION OF 100%
COVERED LAYER LIMITS:
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AWAC LIMITS: US$ 25,000,000
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AWAC PREMIUM: US$ 348,000.
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COMMISSION: 12%
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QUOTE EXPIRY DATE: Policy Inception Date or 30 days after date quotation
issued
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APPLICABLE 1. PRIOR AND PENDING LITIGATION EXCLUSION &
ENDORSEMENTS: CONTINUITY MAY BE BACKDATED UPON RECEIPT OF THE
EXPIRING.
2. PRIOR NOTICE EXCLUSION AT INCEPTION.
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FOLLOW FORM: a) COMPANY: Ace
b) POLICY NO.: TBD
c) POLICY PERIOD: June 30, 2002 to June 30, 2003
d) POLICY LIMITS:
US$ 25,000,000 PER CLAIM
US$ 25,000,000 ANNUAL AGGREGATE WHERE APPLICABLE
e) PREMIUM: US$ 420,000
f) POLICY FORM: EXECUTIVE PROTECTION POLICY
g) ENDORSEMENTS: FOLLOW THE PRIMARY BINDER ON ENDORSEMENTS
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ENDORSEMENTS AWAC WILL NOT FOLLOW:
1. State Amendatory, Choice of Law, Panel Counsel or Arbitration
Endorsements, if any;
2. Underlying sub-limits, however we will recognize erosion;
3. Any Others - To Be Determined upon receipt/review of the
followed policy.
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TERMS AND CONDITIONS
1. This binder is strictly conditioned upon no material change in the risk
occurring between the date of the quote letter and the inception date
of the proposed policy (including any claim or notice of circumstances
which may be reasonably expected to give rise to a claim under any
policy of which the policy being proposed by this letter is a renewal,
replacement or excess of). In the event of such change in risk, the
Insurer may at its sole discretion, whether or not this quotation has
already been accepted by the Insured, modify and/or withdraw this
quotation.
2. This binder is subject to receipt and favorable review of the
following:
a) Complete copy of "Followed Policy" (including endorsements and
schedules).
b) Complete copy of signed binders (including terms and
conditions) for the "Followed Policy" AND any underlying
policies for all layers that attach beneath the AWAC layer.
c) Confirmation of any additional
endorsements/amendments/exclusions for the expired lead and
underlying policies.
3. Any restrictive policy terms and/or conditions that apply to underlying
policies that are in excess of the followed policy but underlying to
the AWAC Excess policy will also apply to the AWAC Excess limit of
liability. Any additional endorsements to the AWAC Policy will be
determined upon review of the above-required documentation.
(Premium Payment)
4. Binding is subject to payment of premium on or before 15 days. If the
premium in respect of an annual period or proof of payment thereof is
not received by the Company within five (5) business days of
commencement of the annual period, or the number of days after the
binding date listed above, whichever is greater, the Policy will be
canceled automatically retroactively to the anniversary date.
(Taxes)
5. The above quotation does not include any amount with respect to any
taxes, including UK Insurance Premium Tax (IPT). The terms of our
proposal include the obligation of the Insured to reimburse AWAC for
any Insurance Premium Tax incurred by it with respect to the premiums
received from the Insured. We require this information no later than
(30) days after binding.
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SUBJECTIVITIES:
This binder is subject to receipt, review and acceptance of the following
information prior to binding:
1. Copy of the primary binder.
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2. Copies of all underlying binders within 5 days of binding.
3. Copies of all underlying policies, as soon as possible.
4. Confirmation that any higher layer placed does not attract the same or
higher premium per million than AWAC's lower layer.
5. This binder is subject to the receipt, review and acceptance of the
completed program.
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ADDITIONAL COMMENTS:
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Thank you for the opportunity to bind this account!
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David Bell