Risk Engineering Report reel PACIFIC REACH PROPERTIES DEVELOPMENT LTD Site Name: Date of Survey: Report Date: Survey Type: TI (CAD): Site Address: Latitude: Longitude: RFSID: SIC Code: PR Production Court Limited Partnership July 21, 2021 July 26, 2021 Property All Risk - Initial 162,406,500 8525 BAXTER PL, BURNABY, British Columbia V5A 4V7, Canada 49.259460 -122.915040 RFS-68220 6512-03-General Office BuildingsRisk Engineering Report PACIFIC REACH PROPERTIES DEVELOPMENT LTD Disclaimer The information contained in this report is intended for the express purpose of assisting AIG personnel in the management of an AIG insurance program. No warranty, guarantee, or representation, either expressed or implied, is made as to the correctness or sufficiency of any representation contained herein. This report may not address each and every possible loss potential, violation of any laws, rules or regulations, or exception to good practices and procedures. The absence of comment, suggestion, or recommendation does not mean the property or operation(s) is in compliance with all applicable laws, rules, or regulations, is engaging in good practices and procedures, or is without loss potential. No responsibility is assumed for the discovery and/or elimination of hazards that could cause accidents or damage at any facility that is subject to this report. Reliance upon, or compliance with, any of the information, suggestions or recommendations contained herein in no way guarantees the fulfillment of your obligations under your insurance policy or as may otherwise be required by any laws, rules or regulations. ‘American International Group, Inc. (AIG) isa leading international insurance organization serving customers in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stocks listed on the New York. Stock Exchange and the Tokyo Stock Exchange. AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. Products and services are written or provided by subsidiaries or affiliates of ‘American International Group, Inc. Not all products and services are available in every jurisdiction, and insurance coverage is governed by actual policy language. Certain products and services may be provided by independent third parties. Insurance products may be distributed through affiliated or unaffiliated entities. Certain property-casualty coverages may be provided by a surplus lines insurer, Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.Risk Engineering Report PACIFIC REACH PROPERTIES DEVELOPMENT LTD Survey Contacts Ms, Radostina Izova Mr. Leigh Glaholt Property Manager Property Manager Narland Management Services Narland Management Services Partnership Partnership rizova@narland.com Iglaholt@narland.com AIG Contacts Miguel Benavides Miguel Benavides Field Risk Engineer ‘Account Risk Engineer 7:604-351-3296 604-351-3296 miguel.benavides@aig.com miguel benavides@aig.com Support Services Client Resources: Impairment Hotline: We maintain a library of over 300 documents, forms and To report sprinkler system, fire pump, water supply or other resources created specifically for client use: other fire protection outages at insured facilities: Call us at +1 877-705-7287 or +1 817-490-3255 or Hot work permits me Email us at globalproperty.impairment@aig.com + Impairment tags + “Insights”, a collection of risk related topics + Tip Sheets, lists to use in preparing for extreme weather events ‘Ask your local risk engineer for access or email requests to globalproperty.impairment@aig.com.Risk Engineering Report PACIFIC REACH PROPERTIES DEVELOPMENT LTD Purpose of Visit This facility was visited to undertake a risk assessment of the fire and associated perils for insurance purposes. The purpose of the assessment was to assist in the identification and mitigation of hazards and exposures that could lead to the loss or damage to assets or business interruption. ‘e Overview Pacific Reach Properties owns this office building complex, which comprises three structures of varying heights made of fire-resistive construction, ranging from three to six stories high. Both above-ground, multi-level and underground parking areas are provided. Multiple tenants occupy the buildings, which are used as open-concept offices and testing labs for electronic equipment manufactured elsewhere. Sprinkler protection is provided throughout the site; dry-pipe systems are installed in parking areas and wet systems everywhere else. Public water supply is strong and reliable. External exposures are considered minimal. Basic management programs, including fire protection inspection and maintenance, HVAC and electrical maintenance and emergency response are in place and properly maintained. Good housekeeping was noted throughout. During the Visit, twas noted that the facility would further benefit and reduce risks by developing and implementing hot work and fire protection impairment management programs. The site is located in an earthquake-prone zone. Seismic shut-off valves have been installed, albeit only partially. Our best advice to further reduce the risk of fire following earthquake is to install additional valves on the remaining gas meters on site. Local management is commended on their proactive approach to our risk improvement. recommendations. New Projects, Significant Changes and Observations Itis important to involve your insurer in new projects, such as refitting, refurbishment, extension work, new builds or relocating to a new site. F re to do so could result in using non-approved construction materials (even though they meet local Building Codes and Fire Regulations) or inadequately protected facilities which could lead to expensive retrospective additions or rework, The Loss Prevention Engineering team at AIG can assist you with this by providing you with engineering support both before and during your project. Please contact us before you commence your, project to ensure that we can arrange a consultation with one of our engineers.Risk Engineering Report PACIFIC REACH PROPERTIES DEVELOPMENT LTD Risk Improvements Risk Improvements - Open Number Name Classification LE Before (CAD) LE After (CAD) Dry-pipe sprinkler systems - 21-07-01 Important - - ‘obstruction investigations. 21-07-02 Hot Work Program- Develop Important - - 21-07-08 Impairment Program- Develop Important - - auoro4 Install setsmic gas shutoff valves at aa reant _ _ 2700 Production Way. Note: Risk Improvements associated with management programs will not have an associated Loss Estimate before or after implementationRisk Engineering Report PACIFIC REACH PROPERTIES DEVELOPMENT LTD Open Risk Improvements : Important Number/Type Name LEBefore (CAD) LE After (CAD) 21-07-01 Dry-pipe sprinkler systems - Management Programs obstruction investigations. ‘Summary The dry-pipe sprinkler systems installed at 8555 Baxter Place are due for an obstruction investigation, in accordance with NFPA Standard 25, Obstruction investigations should be completed every five years. Details Dry-pipe sprinkler systems corrode over time, which can result in accumulations of scale and other obstructive materials. Conducting obstruction investigations will help ensure that piping and sprinkler heads are clear and ready to work as intended when needed. Client Exit Conference Comments This willbe completed promptly and implemented going forward Number/Type Name LEBefore (CAD) LE After (CAD) 21-07-02 Hot Work Program- Develo Management Programs er P ‘Summary Develop and implement a hot work program based on the AIG cutting and welding permit system to monitor hot work operations. The program should including logging and tracking of hot work and pre and post work approvals, The program should also require a continuous fire watch while hot workis being conducted, a 1 hour continuous fire watch after hot work has been completed and a 3 hour intermittent fire watch thereafter. Details Improper cutting and welding isa leading cause of fie. Loss history shows that some hot work fires can start some distance away from where the work is taking place, sometimes well after the work has been completed. A hot work permit system ensures that proper precautions are in place prior, during and after this work is completed. All hot work operations taking place outside designated workshop areas should be performed under this program, including work by contractors.Risk Engineering Report PACIFIC REACH PROPERTIES DEVELOPMENT LTD Client Exit Conference Comments Local contacts indicated that this would be completed Number/Type Name LEBefore (CAD) LE After (CAD) 21-07-03, Impairment Program- Develo Management Programs P e P Summary Develop and implement a written program to manage impairments to fire protection systems and equipment. The program should establish actions necessary for impairment identification, tracking, reporting and restoration, and hazard evaluation and mitigation. Impairments should be tagged for visual indication and tracked using a computerized or paper log system. AIG should be notified of al impairments that will exceed 8 hours in duration. Details Impaired fire protection can result in a large loss if not properly managed. If an impairment occurs, appropriate precautions should be taken as necessary to minimize the hazard including: - Notification of appropriate department heads in the affected areas - Shutdown of hazardous processes - Prohibit hot work - Prohibit smoking - Notification of the central station\alarm receiving center - Notification of the public fire department - Supplemental manual firefighting equipment such as extra fire extinguishers and charged hose lines. - Establish temporary connections to hydrants or adjoining sprinkler systems. AIG recommends that all impairments lasting longer than 1-shift or 8 hours be reported to the impairment desk. This will allow AIG to monitor the impairment and provide guidance regarding precautions that should be taken while the impairment exists. Impairments can be reported by calling 877-705-7287 or emailing, GlobalProperty.Impairment@aig.com Client Exit Conference Comments This program will be implemented, Number/Type Name LEBefore (CAD) LE After (CAD) 21-07-04 Install seismic gas shut-off valves Physical Protection at 2700 Production Way.Risk Engineering Report PACIFIC REACH PROPERTIES DEVELOPMENT LTD ‘Summary Seismic gas shut-off valves should be installed dowstram of the natural gas meters on the building mentioned above. Details ‘The property is located in an earthquake-prone zone. In an earthquake situation, the building structure may or may not be affected; however, the likelihood of gas lines rupturing and causing uncontrolled fires followings higher. Providing. seismic gas shut-off valves will help reduce the risk of fre following by automatically shutting off the natural gas supply to the building interior. Client Exit Conference Comments This will be considered.Risk Engineering Report PACIFIC REACH PROPERTIES DEVELOPMENT LTD Risk Improvement Classification Critical Critical recommendations represent conditions or work practices that create an imminent or severe loss-producing situation. This means that there must be a readily available ignition source or the potential for a severe loss event. Important Important recommendations represent conditions or work practices that could result in a loss -producing situation, but for which immediate action is not necessary. These are recommendations to correct uncontrolled exposures or to achieve and maintain a reasonable level of property protection. These recommendations require commitment on the part of the insured to change or modify conditions or work practices in order to reduce the potential for serious loss, resulting from either frequency or severity events. Advisory Advisory recommendations represent conditions or work practices that do not directly pose a risk for severe loss or Injury, but could contribute toa loss situation. These are recommendations that are considered best practices to enhance the level of property protection. Compliance with these recommendations improves the risk and reduces the likelihood ofa loss occurring from the recognized hazard or situation, Risk Improvement Types Physical Protectio: ‘A Physical Protection Risk Improvement is associated with provision of physical plant and equipment; typically there could be a capital expenditure associated with these improvements. Management Programs ‘Management Programs Risk Improvement typically relates to procedures and management programs and will not normally involve, or will have limited, capital expenditure. NATCAT: NATCAT Risk Improvement is either a physical improvement or the addition/enhancement of management procedures to reduce the risk associated with natural catastrophe events. B&M Management Programs ‘AB&M Management Programs Risk Improvement relates to procedures and management programs, such as, inspection, testing and maintenance, which will not normally involve, or have limited capital expenditure, Such a risk improvements directed at reducing the probability of the identified risk exposure.