EXHIBIT (99-2)
Directors and Officers (First) Excess Liability Binder of Insurance
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From: Telephone No: (441) 292 8515
Facsimile No: (441) 292 1566
XL INSURANCE LTD. [XL Logo]
Cumberland House
One Victoria Street
P. O. Box HM 2245
Hamilton HM JX
Bermuda
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Coverage Binder for: The Proctor & Gamble Company
Type: Directors and Officers Liability including
Company Reimbursement Liability
Our Reference: 134/7
Policy No: XLD+O-00364
Policy Period: June 30, 2001 to June 30, 2002
Brokerage: 12.00%
New Aggregate: Yes
Gross Written
Limit Attachment Premium
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USD 25,000,000 D+O/CR USD 25,000,000 D+O/CR USD 300,000
USD 25,000,000 CR USD 145,000,000 CR USD 70,000
Coverage Binder for: The Proctor & Gamble Company Page: 2
Retro Date: As per CODA Premier form.
Special Conditions
A) XL. coverage to follow form of CODA Premier (10/00) form - as per ACE's
5/7/01 fax.
B) Issue standard XL. Policy: D+O-005.
C) Discovery period: 12 months at 100 Percent of annual premium.
D) Cancellation period: as per primary.
E) Attach Policy Interpretation Endorsement.
F) XL is not in a position to follow any State Amendatory Endorsement.
G) XL will attach the following exclusions to Sides B & C of the Policy:
- Broad Form BI/PD Exclusion
- Broad Form Pollution Exclusion
- P/P Litigation Exclusion effective inception
H) XL will not follow exclusion (h) of the CODA Premier form on Side B.
XL will utilize the wording in exclusion (i) of the CODA 5/92 form.
I) ODL coverage as per expiring endorsement 2.
J) Deletion of General Condition J, as per expiring endorsement.
K) XL will incorporate CODA's 3/7/01 renewal application into our Policy,
when issued.
L) XL is not in a position to follow Section 8(a)(i) of the CODA Premier
Policy form. We will provide a 3 year option for an additional premium
of 100% of the annual premium.
M) Subject to receipt of premium funds by 7/6/01.
N) XL will not be in a position to follow Section 18(b) of the CODA Premier
Policy Form.
Coverage Binder for: The Proctor & Gamble Company Page 3
Standard Conditions
1) The above binder does not include any amount with respect to Insurance
Premium Tax. The terms of this binder include the obligation of the
insured to reimburse XL for any Insurance Premium Tax incurred by it
with respect to the premiums received from the insured.
All terms and conditions as per wording of Policy and appropriate
endorsements.
Regards,
Sharron Williams
XL Insurance Ltd.