IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF PENNSYLVANIA

ACE PROPERTY AND CASUALTY
INSURANCE COMPANY, f/k/a CIGNA
PROPERTY AND CASUALTY
INSURANCE COMPANY, as successor in
interest to CENTRAL NATIONAL
INSURANCE COMPANY OF OMAHA only
to the extent of policies issued by Cravens,
Dargen & Company, Pacific Coast and its
subsidiaries,
Plaintiff,
v.
ARGONAUT INSURANCE COMPANY,
Defendant.
COMPLAINT
CIVIL ACTION No. ____ _
Plaintiff, ACE Property and Casualty Insurance Company, f/k/a CION A Property
and Casualty Insurance Company, as successor in interest to Central National Insurance
Company of Omaha only to the extent of policies issued by Cravens, Dargen & Company,
Pacific Coast and its subsidiaries ("CNI"), by its undersigned attorneys, for its Complaint states
as follows:
Nature ofthe Action
I. This is an action for breach of a reinsurance contract, Argonaut Certificate
of Facultative Reinsurance DX-608 (the "Reinsurance Contract") because of the wrongful
refusal of Argonaut Insurance Company ("Argonaut") to honor its contractual obligation to pay
amounts due and owing and owing to CNI. In addition, CNI seeks compensatory damages,
#23563277 vi
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 1 of 35
including interest, attorneys' fees and costs, for Argonaut's wrongful breach of the Reinsurance
Contract. A copy of the Reinsurance Contract is attached hereto as Exhibit "A."
Parties, Jurisdiction and Venue
2. CNI is an insurance and reinsurance company organized and domiciled in
the Commonwealth of Pennsylvania, with its principal place of business at 436 Walnut Street,
Philadelphia, P A 19106.
3. Argonaut is an insurance and reinsurance company. On information and
belief, Argonaut is organized and domiciled in Illinois, with headquarters at 225 W Washington,
24
1
h Floor, Chicago, IL 60606.
4. This Court has subject matter jurisdiction pursuant to 28 U.S.C. 1332(a)
because the amount in controversy exceeds $75,000, exclusive of interest, attorneys' fees and
costs, and plaintiff and defendant are citizens of different states.
5. This Court has personal jurisdiction over Argonaut because, on
information and belief, Argonaut has transacted and continues to transact business in the
Commonwealth of Pennsylvania, and/or because the contracts at issue in this lawsuit were
entered into by Argonaut and CNI in the Commonwealth of Pennsylvania, and/or because
Argonaut has the requisite minimum contacts with the Commonwealth of Pennsylvania.
6. Venue is proper in this District pursuant to 28 U.S.C. 139l(b)(2)
because a substantial part of the events or omissions giving rise to this action occurred in this
District; or, alternatively, pursuant to 28 U.S.C. 139l(b)(3), on information and belief, because
Argonaut is subject to personal jurisdiction in this District.
Factual Background
7. On or before January 8, 1974, CNI and Argonaut entered into the
Reinsurance Contract, pursuant to which Argonaut agreed to indemnify ("reinsure") CNI with
-2-
#23563277 vi
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 2 of 35
respect to the liability that may accrue to CNI as a result of losses occurring under the insurance
policy issued to Lehigh Valley Railroad by Central National Insurance Company ("CNI Policy").
A copy of the underlying policy, CNS 093087, is attached hereto as Exhibit "B."
8. The CNI Policy was issued with an effective date of November 29, 1973
for a 36-month period, but was cancelled short as of November 29, 1975.
9. The Reinsurance Contract was written with layers of reinsurance assumed
by various reinsurers, including Argonaut. As set forth in the Reinsurance Contract, Argonaut
agreed to assume a 50% quota share of the liabilities within its reinsured layer.
10. In accordance with the Reinsurance Contract, CNI paid Argonaut
appropriate premium in respect to the reinsurance assumed by Argonaut under the Reinsurance
Contract.
11. APU, the successor in interest to Lehigh Valley Railroad, sued various
insurers for insurance coverage to pay for environmental remediation and investigation costs at
eleven (11) sites for its operations at these various sites from approximately 1916-1985. In
total, APU demanded approximately $90 million from its insurers.
12. APU sought coverage from the ACE Companies under the CNI Policy and
under certain California Union policies for environmental remediation and investigation costs at
multiple sites.
13. Approximately 87% of APU's demand to the ACE Companies was for
remediation costs incurred at the Lehigh Valley train derailment site in Leroy, New York. The
claims at this site arose primarily from the derailment of two tank cars in 1970 that resulted in
soil, bedrock and groundwater contamination extending over three miles.
-3-
#23563277 vi
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 3 of 35
14. The ACE Companies and APU finalized a settlement to resolve these
claims in June 2006.
15. As part of this settlement, the ACE Companies agreed to pay APU
$875,000 in exchange for a full environmental release.
16. The $875,000 settlement payment was allocated among the ACE
Companies' relevant policies consistent with APU's policy-specific, time-specific, and site-
specific settlement demand.
17. The CNI Policy, reinsured by Argonaut pursuant to the Reinsurance
Contract, paid $577,500 of the settlement payment.
18. The settlement payment was allocated equally to each of the two annual
periods contained in the CNI Policy.
19. In accordance with the terms and conditions of the Reinsurance Contract,
CNI advised its reinsurers, including Argonaut, of the APU claim and then of the subsequent
settlement.
20. As of January 2014, Argonaut has failed to pay $306,005.96 due to CNI
under the Reinsurance Contract.
COUNT ONE
Breach of Contract
21. CNI incorporates by reference paragraphs l through 20, as if those
averments were fully set forth herein.
22. Pursuant to Section D of the Reinsurance Contract, "All loss settlements
made by the Company, provided they are within the terms and conditions of the original
policy(ies) and within the terms and conditions of this certificate of reinsurance, shall be binding
on the Reinsurer." Ex. A, at 2.
-4-
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Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 4 of 35
23. In accordance with Section D of the Reinsurance Contract, Argonaut is
bound by the ACE Companies' settlement resolving the claims against the underlying CNI
Policy.
24. Pursuant to Section D of the Reinsurance Contract, "the Reinsurer shall
promptly pay its proportion of such loss as set forth in the Declarations." Ex. A, at 2.
25. Notwithstanding receipt of the billings for the settlement made pursuant to
the CNI Policy, Argonaut has failed to pay the amounts due and owing.
26. Argonaut's failure to pay the amounts due and owing is a breach of the
Reinsurance Contract, and is without defense or justification.
COUNT TWO
Breach of Duty of Utmost Good Faith and Dealing
27. CNI incorporates by reference paragraphs I through 26, as if those
averments were fully set forth herein.
28. Argonaut owes CNI a duty of utmost good faith and fair dealing.
29. CNI has provided all information requested by Argonaut and complied
with all of the terms and condition of the Reinsurance Certificates.
30. Argonaut has improperly refused to honor its obligations under the
Reinsurance Contract by not timely paying CNI's outstanding billings.
31. Argonaut's wrongful refusal to honor the obligations of the Reinsurance
Contract is a violation of its obligations.
32. As a direct and proximate cause of Argonaut's conduct, CNI has sustained
and continues to sustain damages, including incurring attorneys' fees and other costs in
connection with this lawsuit, which resulted from Argonaut's breach of its duty of utmost good
faith and fair dealing.
-5-
#23563277 vi
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 5 of 35
33. CNI is therefore entitled to judgment against Argonaut for the breach of its
obligations owed to CNI, including Argonaut's breach of its duty of good faith and fair dealing,
and Argonaut is liable for all resulting damages, including attorneys' fees and interest.
Prayer for Relief
WHEREFORE, Ace Property and Casualty Insurance Company respectfully
requests a judgment against Argonaut Insurance Company as follows:
1. judgment for breach of contract in the amount of $306,005.96;
2. compensatory damages for pre and post-judgment interest, attorneys' fees
and costs, as determined by this Court;
3. such other relief as this Court deems just .and proper.
Jury Demand
Pursuant to Federal Rule of Civil Procedure 38, Plaintiff requests a trial by jury.
Charles E. Leasure III (P A 85431)
Alexander L. Harris (PA 311382)
PEPPER HAMIL TON LLP
Two Logan Square
Eighteenth and Arch Streets
Philadelphia, Pa. 19103
t: (215) 981-4000
f: (215) 981-1750
leasurec@pepperlaw.com
harrisa@pepper1aw.com
Dated: April 2, 2014 Attorneys/or Plaintiff ACE Property and
Casualty Insurance Company, j!k/a CIGNA
Property and Casualty Insurance Company, as
successor in interest to Central National
Insurance Company of Omaha only to the extent
of policies issued by Cravens, Dargen &
Company, Pacific Coast and its subsidiaries
-6-
#23563277 vl
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 6 of 35
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF PENNSYLVANIA
ACE PROPERTY AND CASUALTY
INSURANCE COMPANY, f/k/a CIGNA
PROPERTY AND CASUALTY
INSURANCE COMPANY, as successor in
interest to CENTRAL NATIONAL
INSURANCE COMPANY OF OMAHA only
to the extent of policies issued by Cravens,
Dargen & Company, Pacific Coast and its
subsidiaries,
Plaintiff,
v.
ARGONAUT INSURANCE COMPANY,
Defendant.
COMPLAINT
CIVIL ACTION No. ____ _
Plaintiff, ACE Property and Casualty Insurance Company, f/k/a CIGNA Property
and Casualty Insurance Company, as successor in interest to Central National Insurance
Company of Omaha only to the extent of policies issued by Cravens, Dargen & Company,
Pacific Coastand its subsidiaries ("CNI"), by its undersigned attorneys, for its Complaint states
as follows:
Nature of the Action
1. This is an action for breach of a reinsurance contract, Argonaut Certificate
of Facultative Reinsurance DX-608 (the "Reinsurance Contract") because of the wrongful
refusal of Argonaut Insurance Company ("Argonaut") to honor its contractual obligation to pay
amounts due and owing and owing to CNI. In addition, CNI seeks compensatory damages,
#23563277 vi
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 7 of 35
including interest, attorneys' fees and costs, for Argonaut's wrongful breach of the Reinsurance
Contract. A copy of the Reinsurance Contract is attached hereto as Exhibit "A."
Parties, Jurisdiction and Venue
2. CNI is an insurance and reinsurance company organized and domiciled in
the Commonwealth of Pennsylvania, with its principal place of business at 436 Walnut Street,
Philadelphia, PA 19106.
3. Argonaut is an insurance and reinsurance company. On information and
belief, Argonaut is organized and domiciled in Illinois, with headquarters at 225 W Washington,
24
1
h Floor, Chicago, IL 60606.
4. This Court has subject matter jurisdiction pursuant to 28 U.S.C. 1332(a)
because the amount in controversy exceeds $75,000, exclusive of interest, attorneys' fees and
costs, and plaintiff and defendant are citizens of different states.
5. This Court has personal jurisdiction over Argonaut because, on
information and belief, Argonaut has transacted and continues to transact business in the
Commonwealth of Pennsylvania, and/or because the contracts at issue in this lawsuit were
entered into by Argonaut and CNI in the Commonwealth of Pennsylvania, and/or because
Argonaut has the requisite minimum contacts with the Commonwealth of Pennsylvania.
6. Venue is proper in this District pursuant to 28 U.S.C. 1391(b)(2)
because a substantial part of the events or omissions giving rise to this action occurred in this
District; or, alternatively, pursuant to 28 U.S.C. 1391(b)(3), on information and belief, because
Argonaut is subject to personal jurisdiction in this District.
Factual Background
7. On or before January 8, 1974, CNI and Argonaut entered into the
Reinsurance Contract, pursuant to which Argonaut agreed to indemnify ("reinsure") CNI with
-2-
#23563277 vl
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 8 of 35
respect to the liability that may accrue to CNI as a result of losses occurring under the insurance
policy issued to Lehigh Valley Railroad by Central National Insurance Company ("CNI Policy").
A copy of the underlying policy, CNS 093087, is attached hereto as Exhibit "B."
8. The CNI Policy was issued with an effective date of November 29, 1973
for a 36-month period, but was cancelled short as of November 29, 1975.
9. The Reinsurance Contract was written with layers of reinsurance assumed
by various reinsurers, including Argonaut. As set forth in the Reinsurance Contract, Argonaut
agreed to assume a 50% quota share of the liabilities within its reinsured layer.
10. In accordance with the Reinsurance Contract, CNI paid Argonaut
appropriate premium in respect to the reinsurance assumed by Argonaut under the Reinsurance
Contract.
11. APU, the successor in interest to Lehigh Valley Railroad, sued various
insurers for insurance coverage to pay for environmental remediation and investigation costs at
eleven (11) sites for its operations at these various sites from approximately 1916-1985. In
total, APU demanded approximately $90 million from its insurers.
12. APU sought coverage from the ACE Companies under the CNI Policy and
under certain California Union policies for environmental remediation and investigation costs at
multiple sites.
13. Approximately 87% of APU's demand to the ACE Companies was for
remediation costs incurred at the Lehigh Valley train derailment site in Leroy, New York. The
claims at this site arose primarily from the derailment of two tank cars in 1970 that resulted in
soil, bedrock and groundwater contamination extending over three miles.
-3-
#23563277 vl
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 9 of 35
14. The ACE Companies and APU finalized a settlement to resolve these
claims in June 2006.
15. The settlement payment was allocated among the ACE Companies'
relevant policies consistent with APU's policy-specific, time-specific, and site-specific
settlement demand.
16. The CNI Policy, reinsured by Argonaut pursuant to the Reinsurance
Contract, paid $577,500 of the settlement payment.
17. The settlement payment was allocated equally to each of the two annual
periods contained in the CNI Policy.
18. In accordance with the terms and conditions of the Reinsurance Contract,
CNI advised its reinsurers, including Argonaut, of the APU claim and then of the subsequent
settlement.
19. As of January 2014, Argonaut has failed to pay $306,005.96 due to CNI
under the Reinsurance Contract.
COUNT ONE
Breach of Contract
20. CNI incorporates by reference paragraphs I through 19, as if those
averments were fully set forth herein.
21. Pursuant to Section D of the Reinsurance Contract, "All loss settlements
made by the Company, provided they are within the terms and conditions of the original
policy(ies) and within the terms and conditions of this certificate of reinsurance, shall be binding
on the Reinsurer." Ex. A, at 2.
-4-
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Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 10 of 35
22. In accordance with Section D of the Reinsurance Contract, Argonaut is
bound by the ACE Companies' settlement resolving the claims against the underlying CNI
Policy.
23. Pursuant to Section D of the Reinsurance Contract, "the Reinsurer shall
promptly pay its proportion of such loss as set forth in the Declarations." Ex. A, at 2.
24. Notwithstanding receipt of the billings for the settlement made pursuant to
the CNI Policy, Argonaut has failed to pay the amounts due and owing.
25. Argonaut's failure to pay the amounts due and owing is a breach of the
Reinsurance Contract, and is without defense or justification.
COUNT TWO
Breach of Duty of Utmost Good Faith and Dealing
26. CNI incorporates by reference paragraphs I through 25, as if those
averments were fully set forth herein.
27. Argonaut owes CNI a duty of utmost good faith and fair dealing.
28. CNI has provided all information requested by Argonaut and complied
with all of the terms and condition of the Reinsurance Certificates.
29. Argonaut has improperly refused to honor its obligations under the
Reinsurance Contract by not timely paying CNI's outstanding billings.
30. Argonaut's wrongful refusal to honor the obligations of the Reinsurance
Contract is a violation of its obligations.
31. As a direct and proximate cause of Argonaut's conduct, CNI has sustained
and continues to sustain damages, including incurring attorneys' fees and other costs in
connection with this lawsuit, which resulted from Argonaut's breach of its duty of utmost good
faith and fair dealing.
-5-
#23563277 vi
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 11 of 35
32. CNI is therefore entitled to judgment against Argonaut for the breach of its
obligations owed to CNI, including Argonaut's breach of its duty of good faith and fair dealing,
and Argonaut is liable for all resulting damages, including attorneys' fees and interest.
Prayer for Relief
WHEREFORE, Ace Property and Casualty Insurance Company respectfully
requests a judgment against Argonaut Insurance Company as follows:
I. judgment for breach of contract in the amount of $306,005.96;
2. compensatory damages for pre and post-judgment interest, attorneys' fees
and costs, as determined by this Court;
3. such other relief as this Court deems just and proper.
Jury Demand
Pursuant to Federal Rule of Civil Procedure 38, Plaintiff requests a trial by jury.
Charles E. Leasure III (P A 85431)
Alexander L. Harris (PA 311382)
PEPPER HAMIL TON LLP
Two Logan Square
Eighteenth and Arch Streets
Philadelphia, Pa. 19103
t: (2 I 5) 981-4000
f: (215) 981-1750
leasurec@pepperlaw.com
harrisa@pepperlaw.com
Dated: April 2, 2014 Attorneys for Plaintiff ACE Property and
Casualty Insurance Company, jlkla CIGNA
Property and Casualty Insurance Company, as
successor in interest to Central National
Insurance Company of Omaha only to the extent
of policies issued by Cravens, Dargen &
Company, Pacific Coast and its subsidiaries
-6-
#23563277 vi
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 12 of 35
EXHIBIT A
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 13 of 35
.... , .. ,._... ..
CE :::ATE OF FACULTATIVE REINSURANCE ISS' .
1
'/

HOME OFFICE: 250 MIDDLEFIELD ROAD MENLO PARK, CALIFORNIA 94025
DECLARATIONS
CEDING COMPANY AND ADDRESS
Central National Insurance Company
c/o Dargan & Co.
ATTENTION Reinsurance Facilities Corp.
Lehigh Valley Railroad
New
DX-608
NAME OF INSURED RENEWAL OF CERTIFICATE NO.
Bethlehem Pennsylvania
CITY STATE REPLACES CERTIFICATE NO.
CNS 9-30-87 11-27-73/76

COMPANY POLICY NO. COMPANY POLICY PERIOD REINSURERS CERTIFICATE PERIOD
ITEM 1
TYPE OF.'INSURANCE
Personal Injury, Property Damage, FELA & Bill of Lading
ITEM 2 ITEM 3 ll'EM 4 ITEM 5
POLICY LIMITS AND APPLICATION COMPANY RETENTION REINSURANCE" ACCEPTED BASIS OF ACCEPTANCE
$1,500,000.Ultimate $750,000 P/0 $750,000 P/0
Net Loss XS of $1,500,000.XS .$1,500,000. xs
0
$500,000. Self-insured $500,000. S.I.R. $500,000 S. I.R.
Excess of
Retention
. ..:---
D Contributing E><cess
""
0 Non-Concurrenl
Tho Reinsurers Net Premium For This Certificate Shall Be$ _,1:o:Ooe4c:..>.o:Oc:4c,3'-"'------------- 0 FIXED CHARGE DEPOSIT PREMIUM
payable 1/3
annual
H;li.S PREMIUM SHALL BE ADJUSTED ANNUALLY AT:
RATE
-----BA_S_E _______ t-E_S_T_IM_A_T_E_D_E_x_Po_s_U_R_E __ REINSURERS ESTIMATED
Due:
11-29-74:

$34,681.
$34,681.
$34,681.
Minimum Prornium For Reinsurance Period $ ________ Minimum Premium For Certificate$. _._]
Countersigned At Park, California This ___ _:8c:t:.:h::__ ___ Day Of January
19
.!..!!....:.._ __ _
Authorized Signature
UND3308
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 14 of 35
f' '
,--, -.-.-.-- I"
e..#:: ;u-:l'uud #nauUffftc4'3 '"xJ/111/UMI/!f
HOME OFFICE; 250 MIDDLEFIELD ROAD 1P MENLO PARK, CALIFORNIA 9'1025
{herein called the Reinsurer)
REINSURING AGREEMENTS AND CONDITIONS
In consideration of the payment of tho premium, and subject 10 tho terms, conditions and limits of liability sot forth herein and in the Declarations
made a part hereof, the Reinsurer does hereby reinsure the ceding company In the Declarations (herein called the Company) in respect of
the Company's policy(ies) as follows:
A. The Company warrants to retain for its own nccount, subject to
treaty reinsurance if applicable. tho amount of liability specified in Item
3 of the Declarations, unless otherwise declared to the Relnsuror. The
liability of the Reinsurer, as specified in Item 4 of the Dectarations,
shall follow that of the Company and shall be subject in ell respectS to
all the terms and condjtions of the Company's policy except when
otherwise specifically provided herein or designated as non-concurrent
reinsurance in the Declarations. The Reinsurer's certificate period shall.
be as specified in the declarations at 12:01 AM as to both dates at the
place specified in the Compuny's policy. The Company shall furnish
the Reinsurer with a copy of its policy and all endorsements thereto
and agrees to notify the Reinsurer promptly of all changes which in'
any manner affect this certificate of roinsurance. "The Company shall
make available for inspection, and place et the disposal of the Reinsurer
at all reasonable times, all records of the Company relating to this
cortiticato of reinsurance or .craims in connction therewith.
8. in no event shall anyone other than the Company or, in the
event of the Company's insolvency, its receiver, liquidetor or statutory
successor, have any rights under this agreement.
C. The Company shall notify: the Reinsurl3r. promptly of any occur-
rence which in the Company's estimate of the value of injuries or dam-
ages sought, with.out regard to liability, might result in judgment in an
amount sufficient to involve this certificate of reinsurance. The Com-
pany shall also notify the Reinsurer promptly of any occurrence in
respect of which the Company has created a loss reserve equal to or
greater than fifty (50) percent of the CompanY's retention Specified in
Item 3 of the or, if this reinsurance applies 'an a contribut
ing excess basis, when notice of claim is received by the Company.
While the Reinsurer does not underta'ke tO.iiwestigate Or defOnd claims
or suits, it shall n9vertholess have the right and shall be given -i:he oppor-
tunity, with tho full cooperation of the Company, to associate counsel
<It its own expense and tb join with the Company and its representatives
in the defense and contra! of any clairTI,."suit or proceeding involving
this certificatG of reinsurance.
D. All loss settlements made by the Company, provided they are
within the terms <Jnd c:ondition5 of the original policy(les) and within
the terms and .conditions of this certificate of reinsurance, shall be
binding on the Reinsurer. Upon receipt of a definitive statemern of loss,
the Reinsurer shall promptly pay its Proportion of such Joss as set forth
in the Declarations. In addition therpto, the Reinsurer shali paY its
proportion of expenses (other than office expenses and payments to any
salaried employee) incurred by the in the investigation and
settlement of claims or suits and Its proportion of court costs and inter-
est on any judgement or award, in the ratio that the Reinsurer's loss
payment beers. to the Company's gross loss payment. If there is no toss
payment, Reinsurer shall pay its proportion of such expenses only
in respect of business accepted on a contributing excess basis and then
only in the percentage stated in Item 4 of the declarations in the first
layer of participation.
E. Definitions
As used in this Certificate the following terms shall h.1Va the meaning
set opposite each. ,
Excess of Loss The limit(s) of liabitity of 'the Reinsurer, aS "S1:<Jted in
item 4 of the Declatetions, applieS{y) only to that poftion of loSs settle-
ment{s), in excess of the applicable retention of the Company a"> stutad
in' item 3 of 'th'a' DCcJ'Iiratiorls.
Contributing Excess 1ho Company's pcilicy applieS in excess of other
valid insurance, reinsurance or a self-insured retention and the limit of
liability of the Relnsurcir aPplies proportionally to 811 loss settlements
in the percentage(s) set forth In Item 4 of the Declarations.
Non-Concflrrent The reinsurance provided does not apply to any haz-
of loss-C!r under the Company's policy
other than those specifically set forth in the Declarations. The r1'!tention
of the Company and liDbilitv ot" tho Reinsurer shall be determined as
though the Company's policy oppliod only .to .. the hazardS or risks .of .
loss or damage specifically described in the Declarations.
F. The. Reinsurer will bG paid or credited by the Company with-itS.
proportion of salvage, that is, reimbursement obtained or recovery made
by the Company, lass all expenses paid by the Company in making such
recovery. If the reinsurance afforded by this Certificate ison theexcess
of loss basis, salvage shall be applied in the inverse order il which
liability attaches.
G. The Company will be liable for all taxes on premiums ceded to
the th.is certifica1e of '
H. In the event of the insolvency of the Company, the reinsurance
provided by this certificate shall be payable by the 'Reinsurer on the
basis of the liability of the Company under the policy(ies) reinsured,
without di.minution because of such insolvency, directly to the Com-
pany or its. receiver, liquidator, or statutorY succeSsOr. The Reinsurer
shall be given written notice of the pendency of each claim against the
Company on the policy{ies') reinsured hereunder Within a reasonablE:
time after such claim is filed in the insolvency proce8dings. The Reinsur-
er shall have the right to Investigate each such claim and interpose, at its
own expense, in the proceeding where claim is to he adjudicated,
any defenses which it may doom available to the Company or its receiv-
er, liquidator or statutory successor. Tho expense thus incu_rred by the
Reinsurer shall be chargeable, subject to court approval, against the in
solvent Company as part of the experise of liquidation to the extent of
a .Proportionate share _of the benefit which may accrue to the Company
solely as the result of the defense undertaken by the Reinsurer.
I. The Reinsurer may o1fset any balance(s), whether o"n account of
premiums, commissions, claims, losses, adjustment expense: salvage or
any other amount(s) due from one party to the" other under this certifi-
cate of reinsurance or under any other agreement heretofore or herouftcr
entered into betWeen the Company and the Reinsurer, whelher actin11
as assuming reinsurer or as ceding company.
J. Should the Company's policy be cancelled, this certificate shalt
terminate automatically at the samo time and date. This certificate
may <lise be cancelled by the company or by the reinsurer upon not less
than thirty days prior written notice, one to the other, stating when
thereafter the reinsurance afforded hereby shall terminate, Proof of
mailing shall be deemed proof of notice and calculotion of the earned
pmmium shall follow the company's calculation in the use of short rate
or pro rata tables.
K. The terms of this certificate of reinsurance shall not be waived or
changed except by endorsement issued to form a part hereof, executed
a duly authorized representative of the Reinsurer.
IN WITNESS WHEREOF . ARGONAUT INSURANCE COMPANY has caused this. celrtifica"te Ot reinsurance to be signed by. its President
and Secretary at Menlo Park; California, but the same shall not:be binding upon the Reinsurer unless countersigned by an authorized rapresentative
of the Reinsurer,
15. fl
PJ.esident f
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 15 of 35
EXHIBITB
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 16 of 35
SPECIAL COVERAGE OAIL Y REPORT
,, ' .. - -- .
vf'l.) ..
The Centra/ !Var,omJ Insurance Company of Dmar,d
CRAVENS, \3<$ft1:6'\bl :?COMPANY

NEW
Renewal of Numbc1
C'?
:z:

en
LOUIS, MO. U)
f
, t">
.' !
.....
(,J_'.
0
I
C:
DECLARATIOHS
Item l. Named Insured and P. 0. Address (No .. St:cet,l'own, cOunty, Swtc!
Item 2.
JOHN !7. l\ASE AND !UlREF;T C. 'ERUSTEL$ TBX
PROPER'!"'.: OF LEHIGH '/ALLEY iU':..ILl\OAf: DEBTOH.,
Policy Pen ad:
From NOVEHBER 29tt:, 1973 To NOVEMBEr, 29th, 1970
12:01 A.M .. standard lime at the address of the named Insured as stated herein.
-..:
I I
,... ..
( fll
J
!...
C I
[/ (,1 /
'; '' f\j... ."') I
: l(j
\ f I\ ,_
Item 3. The location of the premises and the applicable limits of liability are specified in the Coverage Form(s) attached to and forming part
or this policy.
PREMIUM Numbers ol forms and endorsements attached to the ptJI icy:
$ 89,500.00 ANNUALLY, PER FORM, GU 9157 AND END. #1, ift2 c #3.

$. 89,500.00 Total Premium
Item 4. If the Policy Period is more than one year and the premium is to be paid in installments, premium installments of rente' below)
$89,500.00 each are payable on the effective date of this policy and the first and second anniversaries thereof.
Items. During the last five years the Insured has not sustained or received indemnity for any loss of the kind covered hereby, unless other
wise stated herein: rente' b. low! ON FILE '1-.'ITH COMPANY
Item 6. During the last five years no insurer has canceled insurance issued to the Insured against loss covered hereby, unless otherwise
stated herein:
Item 7. No other insurance issued to the Insured is in force which covers loss covered hereby, unless otherwise stated herein: (enre' below!
Item 8. By acceptance of this policy the Insured agrees that any prior policy herein designated is canceled as of the time this policy be
comes effective:
*Absenc.e of em entry means .. No
CRAVENS , DARGAN & COHPANY
Countersigned, LOS ANGELES, CALIFORNIA

Authori':l:ed
LUl4l l-73 CC (2M 173)
'
'
r
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 17 of 35
(
SCHEI)ULE
HEREON:
Item 1. The Name of the Assured is:
John F. Nash and Robert C. Haldeman, Trustees of the
Property of Lehigh Valley Railroad Company, Debtor
Item 2. The Address of the Assured is: 415 Brighton Street
Bethlehem, Pa. 18015
Item 3. The Assured is a Corporation
Item 4. The Policy Period Shall be 36 Months, Beginning on the
29th day of November 1973 at 12:01 A.M. and Ending on
the 29th day of November 1976 at 12:01 A.M. Standard
Time, at the Address of the Assured as stated herein.
Item 5. Limit of Liability - See Forms Attached, Paragraph 4
(Conditions)
Item 6.
$1,500,000. Ultimate net loss in respect of each
occurrence for PL, PD, FELA and Bill of
Lading Liability excess of
$ 500,000. Ultimate net loss in respect of each
occurrence for PL, PD, FELA and Bill of
Lading Liability Retention}
Computation of Premiu:n:
Estimated Rate per $1,000.
of Gross Freight
R-2 ;.;e:lue Reve:1ue
$55,000,000. $1.618
!fi:-1imun Annual Premium: $75 300.

Annual
Deposit
Premium
$89,500.
:r.te;n 7. No-:: ice of Occurrence as Required by Paragraph 6 in
Attached Forms.
Law-::on-Byrne-Rruner Insurance Agency Company
Ten Broadway
St. Missouri 63102
1\ t ;:;:.chod to and Forni ng
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 18 of 35
''ULTH-iATE NET LOSS" - MK 3 ALL DIRECT AND 3ECAUSE OF P.':RSONAl.
INJURY Or\ PROPT:1\i'IIJI\:1PGE, FOR WHICH ThE ASSURED IS Ll!l.BLc t:ITHER THROUGH ADJUDICATION,
COMPROMISE CR SETTLEI\ENT AFTER MAKING PRO?ER DEDUCiiONS FOR ALL RECOVERIES AND
AND SI-'AL L ALSO HOSPITAL, MEDICAL, AND FUNERAL CH.l\RGES "NO LAW COSTS, PRO\ I UMS
ON OR APPEAL BON!)S, INTEREST, EXPENSE FOR DOCTORS,. LITIGATION, SETTLEMNT,
ADJUSTMENT MiD INVESTIGATIOo'l OF CLAII\S AND SUITS WHICH ARE PAID CONSEQUENCE OF AI<Y
OCCUi<RENCE COVERED EXCLUDING ONLY THE SALARIES OF THE ASSURED'S PERMANENT
EMPLOYEES.
- MEANS A LAND MOTO:l VEHICLE, TRAILER OR SEM 1-TRAILER.
THIS POLICY DOES NOT APPLY:
I) UNDER COVERAGE B, TO INJURY TO OR DESTRUCTION OF (A) PROPERTY OWNED OR
OCCUPIED BY DR RENTED TO THE ASSURED, OR (B) PROPERTY IN THE CARE,
OR CONTROL OF THE ASSURED OR PROPERTY 1<S TO WHICH THE ,<;SSURED FOR ANY
PURPOSE IS EXERCISING PHYSICAL CONTROL, OR (C) PROPERTY USED BY THE ASSURED.
2) TO PERSONAL INJURY OR PROPERTY DAM!l.GE AR IS I tlG OUT OF THE OWNERSHIP,
OPEf;.l'lTivN OR USi'. OF (A) ANY AIRCRAFT OR (B) ANY AUTOMOBILE,
EXCEPT WHILE BEING OPERATED ON RAILS, OR I.'ATERCRAFT; PROVIDED, THIS
EXCLUSION SHALL NOT APPLY AS RESPECTS LIABILITY OF THE ASSURED TO ITS
EMPLOYElS WHETf:ER AT COM:\ON LAW Or\ OTHER'.<ISE;
3) TO ANY CONTRACTUAL 08LI GAll ON RELATING TO EfiPLOYEE BENEFITS Oi\ FOR
HH I CH THE ASSURED H;1S ASSIJI',ED l lAB Ill TY Ul:OER ANY CWTRACT
IF n;JURY OR i'i\cPi':RTY OCCUi\RED OR COI1M11GEil ?R I OR TO Hie
SliCH CONTRprT nR RFCAMF FFFFCT!VF.
CONDIT I ON$
- -
THE "THE ASSURED" IS USED SEVERI\LLY AND NOT COLLECTIVELY, 8\JT THE
INCLUSION HER ::IN OF MORE HAN ONE ASSURED SHALL OPERATE TO I NCR EASE
THE OF UNDERwRITERS' LIABILITY.
NOT I C[ TO Arf{ GR KNC>i!.ECGE POSSESSED BY AtlY AGENT OR BY Aii'i OTHER
PERS0N SH:1Ll I:OT /\FFECT A \;.!'liVER OR A CHP,;GE IN PART OF THIS POLICY
0;:{ ESTO: TERS FGi:/1 l S l ern Uf
1
C1::R THE TERHS OF
TH:S 'OL!CY, :WP. SH:,I_L THE Or i'!']LJCY G.E 'r:r\i\':0
EXLO:PT bY [t;OCP.SE:'.ENT TO FORN A F:.RT OF THIS POLiCY, SIGNt'D SY A
DULY A!Jl"P.CR IZ0 i{E?RESENTAT I VC OF THE TEr:l.S.
B. lNSPECTtON AUJIT
--- ----
THE SH.qll BE f\1 .C.LL T!KES THE
co;n 1 OF TH 1 ::i rc:... 1 CY ro Jl;Si-'ECT Tt<.:: .CiSSURED nt::1 1 SE.S,
PJlD USED lN TH':: f:1SSUF-::.D 'S
oUSt:lESS vR WOrtK, AtW TO EX,O,MIIjE DURI:iG THE CCNTINt;.:;:iCE Of THIS I'OLICY
OR WITHIN O:iE YEM, AFTER THE Flt;riL TERlli!:ATtON OF THIS PGLICY THE
ASSURED'$ BOOKS f:rfD RECORDS AS RELATE TO THE SASJS OF
THE PRH'.I UH COMPUTATION OF THIS POLICY.
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 19 of 35
THE UtlOER\IRITERS AGREE WITH THE ASSURED, IN CONSIDERATION OF THE PAYMENT OF THE
PREMIUM AND SUBJECT TO THE LIMITS OF LIABILITY, EXCLUSIONS, CONDITIONS, AND OTHER
TERMS OF THIS POLICY:
INSURING AGREEHEtiTS
-
I. COVERAGE A - PERSONAL INJURY LIAB ILl TY
TO INDEMNIFY THE ASSURED FOR ALL SUMS WHICH THE ASSURED SJ-'.ALL BECOHE LEGALLY
OBLIGATED TO PAY, At:D SHALL PAY, AS DAI'AGES At;D EXPENSES MORE FULLY DEFINED
BY THE TER:1 "UL T I l'ii<TE NET LOSS" BECAUSE OF PEC:SONAL INJURY TO ANY PERSON OR
PERSONS, INCLUDING Et'.PLOYEES OF THE ASSURED CAUSED BY OR GROWING OUT OF EACH
OCCURi\ENCE A:JD ARIS IKG OUT OF OR DUE WHO.LLY OR IN PA.RT TO THE CONDUCT OF THE
ASSURED'S BUSINESS.
COVERAGE B -- PROPERTY OAI1AGE LIABI LlTY
TO I tlGEMN I FY THE ASSUREP. ALL SUMS \IH I CH THE ASSURED SHALL BEC0:1E LEGALLY
OBLIGI\TEO TO PAY, Ai!D SHALL PAY, AS DAMAGES AND EXPENSES MORE FULLY DEFINED BY
THE TERM "ULTI11ATE NET LOSS" BECAUSE OF INJURY TO OR DESTRUCTION OF PROPERTY,
INCLUDING THE LOSS OF USE THEREOF, CAUSED BY OR GROWING OUT OF EACH OCCURRENCE
AND ARISING OUT OF OR DUE WHOLLY OR IN PART TO THE CONDUCT OF THE ASSURED'S
I NESS.
I I. DEFINITION OF ASSURED
>iiTi-i RES?ECT TO "iHE iNSi.JPvl.NGE UNOtK A AND B, THE UNQUALIFIED WORD
"ASSURED" INCLUDES ANY EXECUTIVE OFFICER, EMPLOYEE, DIRECTOR OR STOCKHOLDER
THEREOF WHILE ACTING WITHIN THE SCOPE OF HIS DUTIES AS SUCH.
Ill. POLICY PERIOD, TERRITORY
THE COVERI'.GE P,FFCRD0 BY THIS POll CY APPLIES ONLY TO OCCURRENCES CH OCCUR
DUR lr!G THE POL I C'f PER I 00 SET FORTH IN THE S CHE OULE TO THE POll CY, '..1 ITH Hl THE
UiiiTCO STATES OF /;MERICA, ITS TERRITORIES OR POSS$SIONS OR CAI'ADA.
IV. DEFINITIONS
HHEN USED Ill REFEP.ENCE TO THIS POLICY.
:_:I'E><ov.G
1
.':_ _Jr<.'UP.:t.: - ME.qi!S, BOO I LY INJURY, MENTAL INJURY, MENTAL ANGUISH, SHOCK,
SiC.Li_S:;, DI5A3lLITY, INCLUD!f;G DEATH AT ANY Til-lE RESULTING
FALSE N:RESI, FALSE lt1i'EISONHENT, YROi>SFUL ENTRY OR EVICTION, DETENTION AND '
I'),L!ClOL; ::. .. ,.cJCTIOil, (r.XCEPT <!HERE IIISURiiNCE FOR SUCH OCCURREI!CES
IS PROHi51YEiJ LY LAli), LIBEL, SLMWER, DEFA11ATION OF CHM1.ACTER OR iON OF
FR!V.:J.CY, RIDICULE.
f;'\i'!lGf" - I'.EAiiS r'MYSICI\L Vfii<AGE TO OR DESTRUCTION OR LOSS OF T;";GIBLE
f'IW'<:RT'/, liiCUJDING Tii:O LOSS OF USE AND ALL DIRECT AND COilSEQ.UEIHIAL
LOSS RESULT !NG THEREFR01'..
"OCCU?.RENCE" - IIEAIIS AN ACCIDENT OR ONE HAPPENING OR A CO tiT !NUOUS OR REPEATED
1111 LAR CONDITIONS.
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 20 of 35
3) ASSIGNMENT
,.
'
(
ASSIGNMENT OF INTEREST UNDER THIS POLICY SHALL NOT BIND THE UNDERWRITERS UNTIL
THEIR CONSENT IS ENDORSED HEREON; IF, HOWEVER, THE ASSURED SHALL DIE, THlS POLICY
SHALL COVER THE.ASSURED'S LEGAL REPRESENTATIVE AS ASSURED, PROVIDED THAT NOTICE
OF CPNCELLATION ADDRESSED TO THE ASSURED SHO\IN IN THE SCHEDULE AND WilLED TO THE
1-'DDRESS SHOWN IN THIS POLICY SHALL BE SUFFICIENT NOTICE TO EFFECT CANCELLATION
OF THIS POLICY.
4) LIMIT OF LlkoiLITY
THE UNDERWRITERS SHALL BE L !ABLE FOR THE UL T I M.l\TE NET LOSS AS DEF I tiED HEREIN
FOR A SINGLE LIMIT OF LIABILITY OF $1 ,5CO,OOD FOR EACH OCCURRENCE IN EXCESS OF
A SELF-INSURED OF $500,000 FOR EACH OCCURRENCE. IT IS UNDERSTOOD
THAT THE LIMIT OF THIS POLICY REW\INS UNALTERED AtW THERE IS NO LIMIT TO THE
NUMBER OF OCCURRENCES FOR WHICH CLAIMS BE Mil. DE PROV I 0 I NG SUCH
OCCURRENCES OCCUR OUR I NG THE TERM OF THIS POLl CY. THE FIRST $500,000 ULT 11'11\TE
NET LOSS PJ\Y BE INSURED OR NOT. IF THE ASSURED CARRIES INSURANCE UNDERLYING
THE COVERAGE PROVIDED BY THIS POLICY IN THE AMOUNT OF$500,000 OR HORE, THIS
POLICY SHALL APPLY It: EXCESS OF SUCH AMOUNT. NOTHING HEREIN SHP.LL 6E CONSTRUED
TO M.l\KE THIS POLl CY SUBJECT TO THE CONDITIONS AND Ll M ITATI ONS OF SUCH
UNDERLYING INSUi\ANCE.
5) OTHER I
IF THE ASSUREU KAS OTHER INSURANCE AGAINST A LOSS COVERED BY THIS POLICY,
THE U:-JOER',;fl.iTERS NOT i3E LIABLE UNOER THIS POLICY FOR A GREATER PROPORTIO!i
OF SUCH LOSS THAN I ht: APPLICABLE L 1111 T OF LiAB l L i TY STA7ED A80Vf. BEARS TO THE
TOTAL APPLICABLE L I OF LJAB ILl TY OF ALL VAL I 0 AND COLLECTIBLE INSURANCE
AGAINST SUCH LOSS.
6) NOTICE OF CLAIIi OR SUIT
WHEilEVEfl THE ASSURED 1-;.t:\S INFORMATION FROM WHICH THE ASSURED NAY REASONABLY
COHCLUOE THAT AN OCCURRENCE COVERED HEREUNDER INVOLVES i)Af\AGE WHICH, IN THE
EVENT THE ASSURED SHOULD BE HELD LIABLE, IS LIKELY TO INVOLVE THIS POLICY,
NOTICE 8E SENT TO LAWTON 6YP.NE BRUNER I AGENCY COI\PP.NY,
TEN BROAWAY, ST LOUIS, HI SSOUR I 631 02, fiS fRACrt CABLE. Pf\OV IDEO
TH!H Fl\ I UJRE TO NOTIFY THE UNOERWi< ITERS OF SUCH .OCCURReNCE WHICH fiT THE TIME OF
ITS li'\PPt:IIII\G 010 NOT A?PEAR TO IHVOLVE THIS POL.ICY, BUi I<HICH AT A LATER Oi-\TE
WOULD APPEAR TO GIVE RISE TO CLAIMS HEREUNDER, SHALL PREJUDICE SUCH CLAII1S.
IN THE EVENT OF ANY LIKELY TO THIS POLICY, NO LAV COSTS
Slt,LL BE WtT;iOUT THE CO:lSENT OF THE OR l'HEIR REPRESENTATIVES.
AFTER SUCH OCCiJRRdh:[, THC MSSUK:.o tiAY PRJCC.Ef TO !:[G:)Tl;;TE
PERSONAl. INJURY OR o;;t-iAGt. A VI'EH TO OF
AND {\T Tf.;E EARLIEST F'RACTICi\,l MC;iE.NT THE OF THC::

1Ht:. SO ,t;:;c \.'ITH THE ... :1!Tt.qs lt!
SETTLEME!;TS OR LEG,:,L PROCEEC I NGo. THE SH!ll.l. I,CT I.'.E 0R Pf.:Y Ali'!
;/HICri 1\1\Y AFFeCT THE UNllEI<J.iRITER WITHOUT THE LMTTti<'S COt<SENT ANO IN THE
CASE OF L ITI GAT I ON IT SHALL BE COilOUCTEC I fl COOPERATION \.liTH THE UNDER\JR I TERS .
. '
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 21 of 35
(
IN THE EVENT THAT THE ASSURED ELECTS NOT TO APPEAL AGAINST A JUDGMENT GREATER TPAN
THE RETENTION OF THS ASSURED, THE UNDERWR NAY ELECT TO CONDUCT SUCH APPEAL.
THE UNDERWRITERS SHALL BE LIABLE IN ADDITION TO THE APPLICABLE LIMIT OF LIABILITY.
FOR ALL COSTS, TAXES, EXPENSES INCURRED AND ltiTEREST ON JUDGMENTS ATTRIBUTABLE TO
SUCH APPEAL.
8)
IT IS AGREED THAT THE BECAUSE OF THE NATURE OF THIS INSURANCE CANNOT
BE EXCLUSIVELY SUBROGATED TO THE ASSUf:ED'S RIGHT OF RECOVERY AGAINST ANY PERSON OR
EiliiTY. IT IS, THEREFO:-\E, u::DERSTOOD AND AGREED THAT IN CASE OF ANY PAYMENT
HEREUNDER, THE UNDERWRITERS WILL ACT IN CONCERT WITH ALL OTHER INTERESTS (INCLUDING
THE ASSURED) CONCERNED, IN THE Of SUCH RIGHTS OF RECOVERY. THE APPORTIONING
OF ANY A.'IOUNTS l'lflCH MAY BE SO RECOVERED SHALL FOLLOW THE PRINCIPLE THAT. ANY INTERESTS
(INCLUDING THE ASSURED) THAT SHALL HAVE PAID AN AMOUNT OVER AND P.BOVE ANY PAYMENT
HEREUNDER. SHALL FIRST BE REIMBURSED U? TO THE AMOUNT PAlO BY THEI1; THE UNOER\iRITERS
Jl.RE THEN TO BE RE"IHBURSEO OUT OF ANY BALANCE THEN REMAINING UP TO THE AMOUNT PAID
HEREUNDER, LASTLY, THE INTERESTS (INCLUDING THE ASSURED) OF WHEN THIS COVERAGE IS IN
EXCESS ARE ENTITLED TO cLAIM THE RESIDUE, IF ANY. THE EXPENSES NECESSARY TO THE .
RECOVERY OF ANY SUCH AMOUNTS SHALL BE APPORTIONED BETWEEN THE INTERESTS (INCLUDING
THE ASSURED) CONCERNED, IN THE RATIO OF THEIR RESPECTIVE RECOVERIES AS FINALLY SETTLED.
9) ACT !QN AGA I NSI. THE UNDERWR
IT IS AGREED THAT IN THE EVENT OF BANKRUPTCY OR INSOLVENCY OF THE t1SSURED, THE
UNDERWRITERS Sf'ALL NOT BE RELIEVED OF THE PAYNENT OF SUCH INOE/INITY AS WOULD MAVE
BEEN PAYABLE EUT FOR SUCH BANKRUPTCY OR INSOLVENCY.
iO. LOSS ?AYABLE
LIABI Ll TY UNDER THIS POLICY WITH RESPECT TO ANY OCCURRENCE SHALL NOT ATTACH UNLESS
AND UtjTJ L THE ASSURED SHALL PAID THE AMOUNT OF THE UNDERLYING RETE NT I ON FOR SUCH
OCCURRENCE. THE ASSURED SHALL MAKE A DEFINITE CLAIM FOR ANY LOSS FOR WHICH THE UNDER-
1-/RITERS rM BE LIABLE UNDER THE POLICY WITHIN T>iELVE ( 12) MONTHS AFTER THE ASSUREO SH/';LL
HAVE PAID AN .t;HGIJIIT b;:: ULTIMATE NET LOSS IN EXCESS OF THE AMOUNT BORNE BY THE ASSURED OR
AFTER iHE ASSURED'S LIABILITY SHALL HAVE BEEN FIXED AND RENDERED CERTAIN EITHER BY FINAL
JUDGMWT AGAINST THE ASSURED AFTER ACTUAL TRIAL OR BY WRITTEN AGREEMENT THE ASSURED,
THC: CLAiMAnT, 1\!10 THE UNDERWRITERS. IF ANY SUBSEQUENT P1WMENTS SH.4LL BE M!\DE BY THE
ASSURED ON t\CCOUNT OF SANE OL.;URRENCE, ADDITIONAL -CUIIMS SHALL 8E HI\ DE S 11-\1 LARLY
FRON TlaE TO TIME. SUCH LOSSES SPALL BE DUE AND PAYABLE >iiTHIN THIRTY (30) llAYS AI'TER
THEY ARE RESPECTIVELY CLAiflED AND PROVEN IN CONFORMITY WITH THIS POLICY.
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 22 of 35
flhe- A1;a:!unr. ..'!!: nerd bt> comttlrte-d O'llY Wf1"n Hus !S to p:cparation the polity.)
UA B ILITY-/; U TO MOBILE GU91&7
CE.d. A 0009-G 320
NUCLLAR ENERGY LIAeiLIT\' EXCLUSION ENDORSEMENT
{Broad Form)
r---:::lh:-:i-s -m-o-:d-:rfi:-es--,th:-.,-,.-, ,-"-,-,-ns-o:-1 cl:he pc-!icy relating tc AUTOMOBILE GENERAl
LIAeiLITY ANO MEDICAl PAYf.\ENTS IIISURANC OTHER THAll FAMILY AUTOMOBILE. SPECIAl PACKAGE
COMPREHENSIVE PERSONAL AND FARMEP.'S COM?REHEHSIVE PERSONAl. INSURANCE.
This enc'orse;ncet. effective NOVDiBf.R 29th, 1973
ill.Cl A.M .. wndaro \!me,
: terms a part of policy No. CNS 9-30-87
issued to
JOHN F, I<ASH AliD 'P.ODERT C. Ht.I.DEKAI<, TRUSTEES OF TliE
PROPERTY OF LEHIGH RAILROAD COMPMfi, DEBTOR.
by
CENTRAL llATIONAL mSUP.A.NCE COMPANY OF OMAHA
CRAVENS, DARGAN & COMPANY
... .. ...... .......... ........ "AUthor .........................................
It is a,lreed 'that:
I, The policy does not apply,
A. Under any liabilily Coverage, to bDdily injury or property damage
!ll wrth respect to whio::h an insured under the pclicy is also an insured under a nucleur energy liability policy issued by Nuclear Energy liability
Insurance Association. Mu!ual Alomic Energy Liability Underv:riters or Nucfeer Insurance Association of Canada, or would he an insured
under any such policy but for its termination upon exhaustion of its limit of liability; or
(2) resulting from the hj;zzrdous properties of nuelear materia! and with respect to which (a) any person or is required to maintain
financial protection pursuant to the Atomic Energy Act of 1954. or any law amendatory thereof, or {bl the msured is, or had this policy not
been issued would be. entiticd to indemnity from the United States of America, or any agency thereof, under any agreement entered into by
the United Stales of America, or any agency thereof, with any penon or organi1ation.
B. Under any Medical Payments Coverage, or under any Supplementary Peyments provision relating to first aid, to expenses incurred with respect
to bcCi!y i!1jury r.f!sul!l:'l: the prPpcrth:::; of nu!;/::ar materi:!l and cut Df the operation of a nuclear facility
Q!" "'
C. Under any Liability Coverage, to bodily injury e>r property damage resuiting from 1he hazardous properties of nuclear miiterial, if
m the material lal.is at any nuclear facility owned by, or operated by or on behalf of, an insured (II (b) has been discharged or df;:;.
therefrom;
(i) the m<;teriiil is contained ir. speo1 fuel or waste at .any timtl possessed, handlt-d, used, processed, s1ored, transprJrted or dispos;;:d o:
by or on behalf of ar. insured; or
(3) the b:;d11y 1f d2mag:e arises out of the furnishing by an insureD of services, materials, parts or equipment in connection with
the planning, construction, mainten2nce, operation or use of any nuclear 1acility, but if such facility is located within the United States 01
its 1erritories or possessions or Canada, this exclusion (3} applies cmly to property mage to such nuclear facility and any property
thereat.
II. As lJSed in
.. hazarrlous prapertie:;" radioactive, toxic or explosive properties;
"nutlea: materia!'' means source special nuclear materia! or byproduct material;
"sn1.1rce "special nuclear and "byprlJduct material".have th'! given them in the Atomic Energy Att of 1954 or in
any Ja;, atnen\latory thereof;
"spent fuel" means ;,ny fuel element or fuel compo!!ent. solid or liquid, which has been or exposed to radiation in a nuclear reactor;
''ll:iistr:'' zn:i \'tasle rrr<Herial m containing l!ypmdutt material anC: (2) resulting fror.1 the operation by any person or organization of any
nuclear inc!uGed v;ithin the def:ni!ion of nuclear facility under pcragraph (al or {b) theteof;
"nu::lear means
{a) <:n; nt!clear
lbi any equioment or de\ice designed or used for flJ separating the isotopes of uranium or plutonium, (2) processing or utilizing spent fuel, or {3:
har.diing, processing or packaging waste,
{c) equipmer:t or tle1J1Ce used for the proct!ssing, fabricating or a!loying of special nuclea; material if at aily time the amo:Ji!f of such
rr.P.tS:rizl in the cu!tody of the insureD at the premises where such equipment or device is located cGnsists of or contains more than 25 grams
of plutonium or ur.anitm: 233 or .any combin.,ti<HI thereof, or more than 250 gr2ms of uranium 235,
(d) any stru::1ure, baslfl, ercavation, !)remises or pl2ce preparec! or used for the storage or disposal of waste,
l'l11d ir.clu.;les the site on any of the foregoing is located, a!l operations conducted on such site and aU premises l!sed fnr such operations;
reactor" means any apparatus designed or used to sustain nuclear fission in a self-supporting .chain reaction or to con!ain a critical ma:;s
of material; .
"property d"!maz;e" inc!l!d.-:s all of contamination or property .
.... .....

......... , .....
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 23 of 35
EliDORSEMENT No. 1 - Additional Insureds
Central Railro;o.d of New Jersev - It is understood and agreed
that in consideration of premium charged, coverage is extended
to include approximately 100 miles of additional trackage pre-
viously operated by CNJ which tbe assured has received ICC
approval for operating rights. The CNJ is an additional insured
a.s respec'ts these opnrations.
Ironton Railroad Companv - It is understood and agreed that the
Ironton Railroad Company is inclt\ded as an additional insured as
respects the lease dated January 1, 1950 between the Ironton
Rail roild Compa.ny and the Lehigh Valley Rail road Company.
Pittston-Exeter Railro"d - It is agreed that this
policy is extended to include the West Pittston-Exeter Railroad
Company while it is being operated by the Lehigh Valley Railroad
Company.
All other terms or1d conditions unc::honged
Attached to and forming part of __ .._P... oul_j..,r..,'"-'-N"c..'''-'"'"'h-"?=..r __ cC!:=lS:....::9c..-..:3c::O_-c::3.:..7 ________________ _
d Ct?ntra.] Nation?.l !nS
1
.lr.arrr;e Co!npan" of Omaha------ ---------
EFFECTIVE __
Insured .John fi". Nash and Robert C. Halr1>?nan.
of Lehigh Valley Railroad Co., Debtor
Trustees of the Prope::ty
CRAVENS, DARGAN & COHPANY


Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 24 of 35
....
(
PART II- .EXCLUSION
(CONTAMINATION OR POLLUTION)
IT Is HEREBY UNDERSTOOD AND AGREED THAT, EXCEPT INSOFAR
AS COVERAGE IS AVAILABLE TO THE ASSURED IN THE UNDERLYING
INSURANCES SET OUT IN THE ATTACHED SCHEDULE, THIS POLICY
SHALL NOT APPLY TO:
PERSONAL INJURY OR PROPERTY DAMAGE ARISING OUT OF THE
DISCHARGE, DISPEP.SAL, RELEASE OR ESCAPE OF SMOKE, VAPORS,
SOOT, FUMES, ACIDS. ALKALIS, TOXIC CHEMICALS, LIQUIDS OR
GAS.-,;s, w_-,STE MATERIALS OR OT:E-<:ER IRRITANTS, CONTAMINANTS
OR POLLUTANTS I1'rTO OR UPON LAND, THE ATMOSPHERE OR ANY
WA IERCOURSE OR BODY OF WATER.
Nc1h111g h.:.-r-e-in :;htJII very, (I boar, woivt: or on)' of tne reprf!l$ento:ion:o_, c::mditions cr of the po
ether than as abc-vc
To i:.o al!achod to and formi,,g c port of Policy No ............. ... ............................ of tho .........................................................
Cl':!lTlt\1. NATWl1LJ.. INSURMlCi.': <-'OMPtJ"' OF O>l>\HA
.................................. -------------- ... .
. . K,_.NAS,l!

C.
'o; ......... :p.,,o.P.E ... l .... oE ... .. i!A:L!.EY ... l\.h!. ......................... c.?Jvzm;--;--'DARG&'f'&'"CC}lPANT ........................................... .
Nc ............ :......... ""9tl , 9..,3
('.:,.',....,no "',., ! .. ., ... J
... ... .. , .................... c ..................................................... ..
....................................................................................

,., ---l
' V - '- '-'- i \...t ' .? J./! 1 - I lJ
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 25 of 35
(
ENDORSEMENT No. 2
Notwithstanding the limitations contained in Exclusion 1 it is
understood and agreed that coverage as affored by this policy
shall include coverage for the Assureds Liability as a Common
carrier and shall apply in excess o:f and follow the terms and
conditions of Central NatioCJal Insurance CoP.!pany Bill of Lading
Liabili"ty Pol icy Number CNS 9-30-88
It is further agreed that $500,000. Self-Insured Retention
specified in the policy is the amount over which this
policy shall apply insured or uninsured and the existence of
coverage as stated in the. above paragraph shall not serve to
reduce this underlying amount.
All other terms and co11diti-on.s unchanged
of Central National Insurance Comoanv
E F FE C Tl \' E __ IDl'J.bQ:le:.J:r:._,2:<:o4, _JJ_o9t:.7L'l.:L..-----------
ln:s:ur-l):i John F'. Nash and RohPy+ c H;,J doW'"'I=l s Tr11stees of the
Property of Lehigh Valley Railroad Company, Debtor CRAVENS, DARGA.'l & COX!
BY----------------------------------------
..

Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 26 of 35
C?Vof\1\GE: SH!CIAL CO'JlmAGR
IN CONSIDERI\TION OF
IT
ca AN ADDITIONAl. ?RE.MIUM
0 A RETURN PREMIUM
0 THE l"REMIUM CHARWEO
IO HEREBY AGREEC THAT
0
1. RATE
0
%. PREMIUM
D
3, DEPOSIT PREMIUM
il
4. INSTAl..I..MENT
0
:S. AUDIT
CJ
6. TERM
IJ
IS AMENC0 TO READ AS FOL.l.OWS
lil
IS CHARGED FOR THE P'li:RIOD
0
7. lNCII:PTION DATE
D
I!J. DATE
D
9. NAME OF AHUREO
0
10, ADOMEl!IB 01"" LOCATION OF PROPERTY
0 \2, bESCRIPTION OF PROPERTY COVER EO
N091!M88ll 29, 1974 TO HOVEMBIR 29 1975
THE EF"F"e:CTIVE OATE OF THIS <!NOORSEMENT l'S AS bo"'HelT'N ADOVB
_,ADJ)...,.,.l'l',...IaW. ......... .._ __ ... , uw
J. FEDERAL TAX
$
$
89.soo.o
0
0
0
0
.,., STATE TAX
s
% STAMPfNG FEE
s
$
s
s
!19.500,00
s
13, COVERAGE
...
14. THE FOLLOWING 1$ NAMED Aa AN
ADOITIONA.L AflflURitD
fS. SECURITY
16. CERTIFICATE 1$ C ... NCr::LLEO
0 PRO RATE
.. -.
0 SHORT RATI ." .-:' .
=-"\',iC, .
AT LOS .ANGELIIS, CALIFORNl'A
ALL OTHER TERMS AND CONDITIONS RE:'-'AIN UNCHANGLC,
THIS ENCORSEMENT 1:3 ..>.TIACl-n;c 1"'0 o\1'-lD MAOE A I"A.RT OF
CEtlTML N .. .. L'IS, CO
ro
BROKP.:R:
CRAVENS, DARGAN & COMPANY
DATE OF 188UE:
BY END, No.
2
Bvr ______________________________ _
-- ,"'I'
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 27 of 35
. i
;
IN CONSIDERATION OF
. (
GENERAL ENDORSEMENT
The Policy to which this Endorsement is attached is hereby
amended by the item(s) marked by !IJ

lOt An additional premium
0 A return premium
$ ........ ,, ___ ,,,...................
0 The premium charged
IT IS HEREBY AGREED THAT
01.Rate
0 2. Premium
0 3. Limits of liability
0 4. Installment
fi! 5. Audit
LOS ANGELES
"E B 2 1 \975
064. 10
0 6. Schedule of Underlying Insurance
0 7. Inception date
0 8. Expiration date
0 9. Na!11e of Assured
tJ 10. Security
0 11. Address of Assured
0 12. Policy is cancelled
0 13. Certificate is cancelled
014.
------ $ --
------ $ ...........................
Federal Tax-- $ -------
State Tax .............................. s --
Stamping Bureau Fee ............ $ .................................. .
---------- $ --
Total -- $ ........ .. 9.Q .....
NOVEMBER 29, 1973 to NOVEMBER 29, 1974
F'RElGHT REVENUE
RATE PER $1,000,00
EARNED PREMIUM
LESS DEPOSIT PREMIUM
ADDITIONAL PREMIUM DUE
$66,457,238,00
l. 618
107,528.00
69,500.00
$ 18,028.00
The effective date of this Endorsement is AS SHOWN ABOVE at LOS ANGELES, CALIFORNIA
All other terms and conditions remain unchanged.
This Endorsement is at:ached to and made a part of ':NS 9-30-87 -
CENTRAL NATIONAL INSURANCE COMPANY
ROBERT C. HALDEMAN, TRUSTEE OP THE PROPERTY
Issued to: OF LEHIGH VALLEY RAILROAD COMPANY, DEBTOR
CRAVENS. DARGAN & COMPANY
Date of issue: 2-19-75 By EHS:bt
Endorsement No. 3 By .................................................................... .

Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 28 of 35
policy No.
ORO:
(

This endorsement, effective 12:01 A, M. JANUARY 22nd, l975 , fo,ms a:
CNS 9-30-87 issued to ROBERT HALDEMAN, TRUSTEE OF THE PROPERTY
OF LEHIGH VALLEY RAILROAD COMPANY, DEBTOR
NA!IONAL TNRURANCE C.OMPANY
In consideration of an Additional Premium to be determined by
audit at the rate basis set forth in Item 6 of the schedule,
it is herebp agreed that the Name of Insured is amended to
include:
LEHIGH VALLEY AND NEW ENGLAND RAILROAD
It is further agreed that solely as respects the above named
insured the limits of liability of this policy as set forth in
Item 5 of the schedule is amended to read as
$ 1,500,000.00 ultimate net loss in respect of each
occurrence for PL, PD, FELA and Bill of Lading
liability excess of
$ 975,000.00 ultimate net loss in respect of each
occurrence for PL, PD, FELA and Bill of Lading
liability (insured through Midland Insurance Company)
in turn is excess of
$ 25,00D.OO ultimate net loss in respect of each
occurrence for PL, PD, FELA and Bill of Lading
liability (self-insured retention),
In no event shall the lill'it of the company's ll.ability be
increased by reason o( this endorsement ..
INF0&'11\TION: Small l1'n ti f
e opera ng orty miles of track north from
Bethlehem, !'a. five d{esels moved 1'3725 cars in
with revenue of )l,JOO,OOO. We get same rate on
pcllcy although mderlying is Sl 000 000 rather than
ssoo,ooo. ' ' .
A,ETNA- CRAVENS, DARGAN & COMPANY
END. #4,
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 29 of 35
. - --------
,. c (_
' '
ENDORSEMENT
Premium Adjustment
Freight Revenue (12-1-73 to 12-1-74)
Rate Per $1,000.00
Earned Premium
Less Deposit Premium
Additional Premium Due
Al1 other terms and conditions remaining unchan9ed
................
$66,457,238.00
1.618
107,528.00
89,500.00
18,028.00
Policy No. 9-30-87
to and forming
of Central National Insurance Com;;;v,ny
SFFECTIVE _____
lnsurt:d
Robert c.
Of Lehigh
Haldeman. Ttustee of ttw P;,:operty
Valley Railroad Company, Debtor

Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 30 of 35
. '1. :, .!""
. . . : . . . .
NOTICE OF CANCELLATI?_N .. WS ANGELES, CAL.
.... :.f . ... ... .............................................
l(:t.>mp:my)
hereby gives you written notice in acrordance with the Policy conditions of the c:mcelbtion of
. . CNS 9-30-87 . . LOS ANGELES CALIFORNIA
Lts Pohcy ------- Jssued throup:h 1ts .................................... J ............. _ ..................................................................... Agencv
to ..... ,J.QJ:!!'I .... f.., .... 1M.!!..A .. ll,Q_ll.!)J1.:t: ... C., .... HALllEMAN .... .ET .. .AI..:. ______ ................................................................................................. , .................. ..
By virtue of this notice, as issued to you. the Poliey will be canceled and all liability under said Policy will cease at and from 12:01 A. M,,
stundard time, ...... 19 .. .7..!?. without further notice.
If the premium has been paid, the excess of paid premium above the pro rata premium for the expired term, if not tendered to you herein, will
be refunded on demand.
1f the premium has not been paid, a biH for the premium earned to the time of cancellation will be forwarded in due course.
THIS NOTICE IS TO,
!JOHN F. NASH AND ROBERT C. HALDEMAN,
OF THE P?-OPERTY OF LEHIGH VALLEY
RAILROAD COMPANY, DEBTOR
C/O LAWTON-BYRNE-BRUNER
LTEN BROADWAY
ST. LOUIS, MISSOURI, 63102
POST OFFICE DEPARTMENT
CERTIFICATE OF MAILING
Received Ftom:
CRAVEN5, DARGAN & COMPANY
;540 WILSHIRE BLVD.
LOS ANGELES, CALIFORNIA 90005
One piece of ordinary moil addressed to:
AS ABOVE
-<
t . -' ...... r;-.
..._ .. ..
i ;:, .
- <

"
'
"
MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL; OOJ:.s.tJQr;_ ...
PROVIDE FOR INSURANCE, - PQSTMASTEH
POO FORM 3817
MAY 19:59
CC: LAWTON-BYRNE-BRUNER
REINSURANCE FACILITIES CORP.
<
j
.
Please return the Policy and oblige,
Yours very truly,
CENTRAL NATIONAL INS. CO. OF OMAHA
(Company)
CRAVENS, DARGAN & COMPANY
d: / ' c . .?!..#
L.-' -::/....,_. t. _,(. /)/ ::;_....
By ........................................... --------------"---- ... ----
EDWARD M. SMITd
E. Sanchez
hereby certify th:tt on the 28TH
day of OCTOBER, 197 5
I personally mailed in the U. S. Post Office at
LOS ANGELES. CAL.
a notice of (ance!lation, :1n exact carbon copy of which
appears above, and at said time .received from rhe
U. S. Post Office the receipt (Form 3Sl7) facsimile
reproduced hereon
at LOS ANGELES, CAL.
This 2 8 day of
OCTOBER,
SiJ::n::t.ture:
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 31 of 35
----------
- OF CANCELLATI(.)N . WS ANGELES CAL.
iLI.lOliAr. < t . Ol OXAI!Io. ( '"( .
.............................................................................. . ____J,9.J.-:i ........ .
( [nsun.ncc:
hereby gives you written notice in accordance with the Po! icy condirions of the cancellation of
. _ CNI _ . 1.05 A:fGllUS, C-M.I:fO.&JOU
:: ..
By virtue of this notice, as issued to you, the Policy wiH be canceled and tlll liability under said Policy will cease at 9-nd from 12:01 A. M.,
standard time, .......... 19 ... , . .? tithout further notice.
[f the premium has been paid, the of paid premium above the pro rata premi\lm for the exptred term, if not tendered to you herein, will
be refunded on demand.
If the premium has not been paid, a bill for the premium earned to the time of cancellation will be forwarded tn due course .
. THIS NOTICE IS TO:
1 Jetw. -r. li.Ult ao:amrz c. R.IU.ZI!!lUli,
OY TftX P!CPtXTT OF LZHica
a.\ I !..WAD C-Om>.t!IT. llll:lS'l:Cil
C/ 0
L nu sw4i>ii.li. Y
$!, l.Xlll, :!I3:10Uli.I, 63102
CC: LAIIrOlt-ll'!UlHiltlJ!Htl'.
SU'a.ASCZ 1 AC ILZ"!'I.ES CCRP ..
Please return the Policy and oblige,
Yours very truly,
l.A:l'IOlUl. t;;s, CO, OF O.'Wi&
(Company)
CRAVENS, DARGAN & COMPANY
r: '- /./1 r'".(
By ______________
S, Sanc:hea
hereby that on the 28 !ff
day of
' !975
r personally mailed in the U.S. Post Office at
CAL.
a o.otke of cancellation, cacbon copy of which
appears .1bove, and at said time received from the
li. S. Po:st Office the (For[D 3817) iacsimile
reproduced hereon
LOS ANGELES, CAL.
Thi:s 28 day of 19)'5
Signature:
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 32 of 35
ENDORSEMENT
Premium Adjustment
Freight Revenue (12-1-73 to 12-1-74)
Rate Per $1,000.00
Earned Premium
Less Deposit Premium
Additional Premium Due
All other terms and conditions remaining unchanged
---------
$66,457,238.00
1. 618
107,528.00
89,500.00
18,028.00
POlicy No. 9-30-87
AHached to and forming part of ____
of Central National Insurance Company
EFFECTIVE ____
Jnsured
Robert C.
Of Lehigh
Haldeman, Trpstee of tbe Property
Valley Railroad Company, Debtor
BY----------------------------------------
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 33 of 35
(
. ....
Reinsurance Facll !ties Corporationr-----
Endorsement No.
1

This endorsement forms a part of policy no. DX-608 Named Insured
issued by ARGONAUT INSURANCE COMPANY
and effective November 29, 1973 12:01 A.M. Rl
standard time AC
Central National Insurance Company
Lehigh Val ley Railroad
(The llbo"t required only when endorsement h iHued wb\coquent to prt>pdrc'lhon ol rhe polic:y.i

An additional premium of $698"_i.s.-hereby due Argonaut for the audir
period November 29, 29, 1974.
LOS ANGElES
MAR 1 197S
064- 10
{)'.
Nothing herein cont.ained shall be held to vary, alter, waive or extend any of the terms, conditions, a\t.ments
limitations of this policy other than as above stated.
r .....
n


13
fl. .... UeN>
1 AurlHoR;o P.EPRESENTATIV
1 v_ -Hl ' I _
I) ;f 0,,, I f-t'v l.C(,-
1L I J COUNTERSIGNATURE6Y RESIDENT UCENSED AGENT
SECAETARY
UNOl07
.-.
\

','-.:, --
\
... -------
..._
Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 34 of 35
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Case 2:14-cv-01925-JS Document 1 Filed 04/02/14 Page 35 of 35