CONTROL OF DAMAGED GOODS AND/OR MERCHANDISE AND/OR PROPERTY:

Notwithstanding anything to the contrary contained elsewhere in this policy, it is understood and agreed that in case of damage, or if The Insured reasonably suspects damage may exist, to goods and/or merchandise and/or property insured under this policy, The Insured is to retain full and absolute discretion and control over the disposition of all such goods and/or merchandise and/or property. It is understood that The Insured shall be the sole judge as to whether disposal or sale of such goods and/or merchandise and/or property is detrimental to its interest.

Any goods and/or merchandise and/or property which The Insured deems unfit for sale or which it is unable to sell or dispose of under its agreement with any trade association or other entity, shall be treated as a constructive total loss, and The Insured shall dispose of the goods and/or merchandise and/or property to its best advantage with This Insurer being entitled to its share of the net proceeds resulting from such disposition, or the goods and/or merchandise and/or property shall be destroyed after notification to This Insurer and any expenses incurred in connection with such destruction shall be borne by This Insurer.

(Underwriter's Policy Form)

- OR -

CONTROL OF DAMAGED MERCHANDISE

It is agreed that the Assured shall retain control of all damaged merchandise.  Wherever practical, the damaged merchandise will be sold in accordance with all other provisions of this policy. It in the opinion of the Assured; however, it is detrimental to their interest to sell the damaged merchandise they may request of the Company that the damaged merchandise be treated as a Constructive Total Loss. The Company will not unreasonably deny requests for such treatment. If merchandise is determined to be a Constructive Total Loss under this provision it will be disposed of in a reasonable way agreeable to both the Assured and the Company. Any proceeds of sale of the damaged merchandise shall be received by the Assured and will be used to reduce the amount of loss under this policy.

(Underwriter's Policy Form)

CONTROL OF DAMAGED GOODS

It is agreed that the Assured exercising a reasonable discretion, shall be the sole judge as to whether the goods in any loss under the policy are suitable for marketing and no goods deemed by the Assured to be unfit for marketing shall be sold or otherwise disposed of except by the Assured or with the Assured's consent, but the Assured shall allow these Assurers any salvage obtained on any sale or other disposition of such goods. It being agreed that if the goods are to be destroyed that same be accomplished with a representative of these Assurers in attendance, then the Assured will be required to furnish an original destruction certificate.

(Broker's Policy Form)

SUE AND LABOR:

In the case of any imminent or actual loss or misfortune, it shall be lawful and necessary to and for The Insured, its factors, servants and assigns, to sue, labor and travel for, in and about the defense, safeguard and recovery of the goods and/or merchandise and/or property insured hereunder, or any part thereof, without prejudice to this insurance.

The acts of The Insured or This Insurer in recovering, saving and preserving the insured goods and/or merchandise and/or property in case of disaster, shall not be considered a waiver or an acceptance of an abandonment.

This Insurer will pay all such sue and labor expenses subject to the limit of liability set forth elsewhere in this policy.

CONSTRUCTIVE TOTAL LOSS

No recovery for a Constructive Total Loss shall be had hereunder unless the merchandise insured is reasonably abandoned on account of its actual total loss appearing to be unavoidable, or because it cannot be preserved from actual loss without an expenditure which would exceed its value if the expenditure had been incurred.

MACHINERY CLAUSE

When the insured property includes a machine consisting when complete for sale or use of several parts, then, in case of loss or damage covered by this insurance to any part of such machine, the Company shall be liable only for the proportion of the insured value of the part lost or damaged, or at the Assured's option, for the cost and expense, including labor and forwarding charges, of replacing or repairing the lost or damaged part, excluding loss, if any, sustained by payment of additional duty unless the full duty is included in the amount insured; but in no event shall the Company be liable for more than the insured value of the complete machine.

LABELS CLAUSE

In case of damage covered by this insurance affecting labels, capsules or wrappers, the Company shall not be liable for more than an amount sufficient to pay the cost of new labels, capsules or wrappers and the cost of reconditioning the merchandise, but in no event shall the Company be liable for more than the insured value of the damaged merchandise.

BRANDS AND TRADEMARKS

In case of damage to goods and/or merchandise and/or property insured under this policy bearing a brand or trademark, the sale of which in any way carries or implies a guarantee, the salvage value of such damaged goods and/or merchandise and/or property shall be determined after removal of all brands and trademarks.

With respect to packaging from which the brand or trademark cannot be removed, the contents shall be transferred into plain packaging, subject always to the consent of The Insured.

With respect to any goods and/or merchandise and/or property for which it is deemed by The Insured to be impractical to destroy all evidence of The Insured's connection therewith, This Insurer agrees to waive its right to salvage and The Insured is granted the option to destroy such damaged goods and/or merchandise and/or property.

The cost to remove brands and trademarks, as well as the cost to remove the contents from their original packaging and transfer them into plain packaging, shall be borne by This Insurer, but in no event shall This Insurer be liable for more than the insured value of the damaged goods and/or merchandise and/or property.

PAIR AND SETS:

It is understood and agreed that the loss of or damage to anyone item of the goods and/or merchandise and/or property insured under this policy which consist of items in a pair or set, shall constitute a total loss of such pair or set.