655 N. Central Ave., Suite 2100

Glendale, CA 91203

t: 818-245-1010

f: 818-245-1750

License ##0D44433

 COMMERCIAL LINES DECLARATIONS PAGE

COVERAGE TYPE: Renewal

ACCOUNT NUMBER: AIN32054

INSURANCE CARRIERS: See attached Appendix for schedule of Participating Insurance Companies and Policy Numbers

ACCOUNT NAME: CG Amber Woods Apartments LLC (See attached Schedule of Properties for named insured information if applicable)

ACCOUNT MAILING ADDRESS: P.O. Box 498484 , Cincinnati, OH 45249-

COVERAGE PERIOD: 4/27/2017-4/27/2018 at 12:01 A.M. Standard Time

PRODUCER: Neace & Associ. Ins. Agency of OH, Inc.-Cincinnati

 5905 E. Galbraith Road

 Cincinnati, OH 45236

BUSINESS DESCRIPTION: Commercial Real Estate

IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS COVERAGE,

WE AGREE TO PROVIDE THE INSURANCE AS STATED BELOW

COVERAGE CONSISTS OF THE FOLLOWING PARTS FOR WHICH A PREMIUM IS INDICATED. THIS

PREMIUM MAY BE SUBJECT TO ADJUSTMENT.

Coverage Part/Form Coverage Limit Deductible Gross Premium Non-Taxable

Gross Premium

Taxable Gross

Premium

Surplus Lines

Tax/Fees

Commercial Property See Attached Schedules See Attached

Schedules

$14,396.00 $46.00 $14,350.00 $717.50

Commercial General

Primary Liability

$1m per occurrence/$2m

aggregate

See Attached

Schedules

$3,275.00 $0.00 $3,275.00 $163.75

Commercial General

Excess Liability

NOT COVERED

Commercial General

Excess Liability

NOT COVERED

Commercial General

Excess Liability

NOT COVERED

Commercial General

Excess Liability

NOT COVERED

Non Profit Excess D&O

Liability

NOT COVERED

Commercial Crime

Coverage

NOT COVERED

Cyber One Network

Security

$50,000 aggregate per

account

$5,000 per occurrence Included

Data Compromise -

Response Expense

$50,000 aggregate per

account

$2,500 per occurrence Included

Data Compromise -

Defense & Liability

$50,000 aggregate per

account

$2,500 per occurrence Included

Equipment Breakdown $7,500,000 per location See Attached

Schedules

Included

DIC - Earthquake & Flood NOT COVERED

Pollution Liability NOT COVERED

TRIA - Property NOT COVERED

TRIA - Liability NOT COVERED

TOTAL PREMIUM DUE AT INCEPTION: $17,671.00 $46.00 $17,625.00 $881.25

See attached schedule of properties for a list of endorsements that apply to form coverage for this account.

Countersigned By

Authorized Representative

Rev 10/2015 acord_decpage

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 1 of 86 PAGEID #: 4
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PID: P00060091 Status: Renewed Appendix: BP-E

Terrorism: No Policy Term: 04/27/2017 - 04/27/2018 Property Program: Residential-E

Deductible: $25,000 Per Occ/Per Loc unless otherwise endorsedNamed Insured: C

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mber Woods Apartments L

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Property Address: 7803, 7809, 7815, 7821 Dawn Road, Cincinnati, O

H 45237-0000 R

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V: $4,050,000 L

OI: $237,000 B

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P: $0 TIV: $4,287,000

Property Type: Habitational Construction: ISO 2 - Joisted Masonry Built: 1959 Bldgs: 004 Bldgs + 000 Park Stories: 002 Flrs + 000 Bsmt + 001 Park Sprk: None

Active Endorsements: 03 C

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CI-500 LI 0317, 01 R

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TIV: Total Insurable ValueAIN: 32054P

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 2 of 86 PAGEID #: 5
CG Amber Woods Apartments LLC

AIN: 32054

Schedule of Mortgagees

PID Property Address Mortgagee Name Address City State ZIP Loan No Mort Int No Loss Payee 438BFUNS

P00060091 7803, 7809, 7815, 7821 Dawn Road

Cincinnati, OH 45237-0000

Wells Fargo Bank NA, as Trustee for

the registered holders of LSTAR

Commercial Mortgage Trust 2014-2,

Commercial Mortgage Pass-Through

Certificates, Series 2014-2, its

successors and/or assigns Midland

Loan Services, a PNC Real Estate

Business

P.O. Box 25965 Shawnee

Mission

KS 66225-5965 030306681 1 Yes Yes

AIN: 32054P

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 3 of 86 PAGEID #: 6
TO BE ATTACHED TO AND FORM PART OF THE EVIDENCE OR CERTIFICATE OF INSURANCE ISSUED TO:

CG Amber Woods Apartments LLC et al per attached schedule

Applicable To: AIN/PID Number: Refer to Schedule Property

Policy Number: Refer to Appendix 01 BRC-100 LI 0317

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

REAL PROPERTY REPLACEMENT COST LIMITATION (100% of Scheduled

Value)

In consideration of a premium charged, it is agreed that following coverage change applies, but only to coverage provided at insured locations identified by

“Property Identification Numbers” where the Declarations Page or Evidence of Commercial Property Insurance issued to the Named Insured by CIBA

Insurance Services states that this endorsement applies.

The following limitations apply only to Real Property at the location described in the Declarations Page or Evidence of Commercial Property Insurance to

which this endorsement is attached:

1. The Limit of Insurance for Real Property is 100% of the Real Property Value and Real Property Parking Value (if applicable) for the location that is stated

under “Schedule of Locations” in Page 2 of the Declarations Page or Evidence of Commercial Property Insurance to which this endorsement is attached.

2. Any amount payable under the applicable sublimit for Demolition Cost and Increased Cost of Construction is part of and not addition to the Limit of

Insurance for Real Property.

3. Section 9. VALUATION, paragraph d. (3) in the All Risk Property Coverage Form is amended to read:

 (3) The Company will not pay more on a replacement cost basis than the least of

 (a) The cost to replace, on the same site, the lost or damaged real property with other property of comparable material and quality which is used for

the same purpose; or

 (b) The amount actually spent by the Insured that is necessary to repair or replace the lost or damaged property.

 (c) 100% of the Real Property Value and Real Property Parking Value (if applicable) for the location that is stated under “Schedule of Locations” in

Page 2 of the Declarations Page or Evidence of Commercial Property Insurance to which this endorsement is attached.

_______________________________________________________________________________________________________________________________

 IMPORTANT NOTICE:

This policy may not provide full replacement cost coverage in the event of damage to or destruction of covered property. The Building Replacement Cost

Limitation endorsement caps the policy Real Property limit at 100% of the Real Property and Real Property Parking Value (if applicable) for the locations

listed on the Schedule of Locations. The Real Property value declared by you is an estimated replacement cost figure based on general information about

the insured property. This is not a guarantee that this figure will represent the actual cost to replace the property of it is significantly damaged or destroyed.

The actual replacement cost can be impacted by multiple factors including inflation, improvements to the property, and the increased cost of building

materials and supplies after a wide-spread disaster. It is your responsibility to select the appropriate Real Property value. If you have questions or concerns

regarding the Real Property Value, you should consider obtaining a real estate appraisal or contractor estimate of the Real Property’s replacement cost.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED

Countersigned By:

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 4 of 86 PAGEID #: 7
TO BE ATTACHED TO AND FORM PART OF THE EVIDENCE OR CERTIFICATE OF INSURANCE ISSUED TO:

CG Amber Woods Apartments LLC et al per attached schedule

Applicable To: AIN/PID Number: Refer to Schedule Property

Policy Number: Refer to Appendix 01 DCI-500 LI 0317

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

DEMOLITION, ICC, INCREASED LOSS OF INCOME DUE TO BUILDING

ORDINANCE COMBINED SINGLE SUB-LIMIT

In consideration of a premium charged, it is agreed that following coverage change applies, but only to coverage provided at insured locations identified by

"Property Identification Numbers" where the Declarations Page or Evidence of Commercial Property Insurance issued to the Named Insured by CIBA

Insurance Services states that this endorsement applies.

It is hereby agreed that all coverage for building ordinance coverages:

B. Demolition

C. Increased Cost of Construction

D. Increased Loss of Income

are subject to a single, combined sublimit of $500,000 for the property to which this endorsement applies.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED

Countersigned By:

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 5 of 86 PAGEID #: 8
TO BE ATTACHED TO AND FORM PART OF THE EVIDENCE OR CERTIFICATE OF INSURANCE ISSUED TO:

CG Amber Woods Apartments LLC et al per attached schedule

Applicable To: AIN/PID Number: Refer to Schedule Property

Policy Number: Refer to Appendix 01 MEP-025 OT 0317

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

MINIMUM EARNED PREMIUM

In consideration of a premium charged, it is agreed that following coverage change applies, but only to coverage provided at insured locations identified by

"Property Identification Numbers" where the Declarations Page or Evidence of Commercial Property Insurance issued to the Named Insured by CIBA

Insurance Services states that this endorsement applies.

A minimum earned premium equal to twenty five per cent (25%) of the annual premium applies to the Declarations Page or Evidence of Commercial

Property Insurance to which this endorsement is attached, once the Declarations Page or Evidence of Commercial Property Insurance becomes

effective. No flat cancellation is allowed.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED

Countersigned By:

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 6 of 86 PAGEID #: 9
TO BE ATTACHED TO AND FORM PART OF THE EVIDENCE OR CERTIFICATE OF INSURANCE ISSUED TO:

CG Amber Woods Apartments LLC et al per attached schedule

Applicable To: AIN/PID Number: Refer to Schedule Property

Policy Number: Refer to Appendix 01 RAC-015 LI 0317

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ROOF - ACTUAL CASH VALUE LIMITATION (Older Than 15 Years)

In consideration of a premium charged, it is agreed that following coverage change applies, but only to coverage provided at insured locations identified by

"Property Identification Numbers" where the Declarations Page or Evidence of Commercial Property Insurance issued to the Named Insured by CIBA

Insurance Services states that this endorsement applies.

If the roof coverings at the insured location are older than 15 years at the time of loss or damage, the following limitation will apply.

In respects to the perils of wind or hail, coverage for roof coverings is hereby amended as follows:

Actual cash valuation

With respects to valuation of the roof covering, the replacement cost value is deleted and replaced with actual cash value.

Definitions:

Roof covering means:

1. The roof material exposed to the weather

2. The underlayments applied for moisture protection;

3. All flashings required in the replacement of a roof covering

Actual cash value means:

The cost to repair or replace the damaged property with material of like kind and quality with proper deduction for depreciation; at the time of loss,

consideration will be given to the age, condition and maintenance of the damaged property.

In the event that the Insured cannot produce documentary proof that roofs at an insured location were 15 years old or less at the time of loss or damage,

the insurer will engage a qualified, independent roofing expert who will estimate the age of the roofs at the insured premises. If the expert estimates that

any of the roofs at the insured premises are older than 15 years, the above limitation will apply.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED

Countersigned By:

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 7 of 86 PAGEID #: 10
TO BE ATTACHED TO AND FORM PART OF THE EVIDENCE OR CERTIFICATE OF INSURANCE ISSUED TO:

CG Amber Woods Apartments LLC et al per attached schedule

Applicable To: AIN/PID Number: Refer to Schedule Property

Policy Number: Refer to Appendix 01 WAH-025 DE 0317

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

WIND AND/OR HAIL DEDUCTIBLE

In consideration of a premium charged, it is agreed that following coverage change applies, but only to coverage provided at insured locations identified by

"Property Identification Numbers" where the Declarations Page or Evidence of Commercial Property Insurance issued to the Named Insured by CIBA

Insurance Services states that this endorsement applies.

"Wind and/or Hail" Deductible: $25,000 per location per occurrence

It is agreed that the above deductible shall apply to loss or damage caused directly or indirectly by or resulting from the perils of wind, wind driven rain,

hail, and any resultant water damage regardless of any other cause or event that contributes concurrently or in any sequence to such loss or damage for the

property referenced in the attached Declarations Page or Evidence of Commercial Property Insurance.

Any exclusion or deductible for "Named Windstorm" that applies to location(s) where this endorsement also applies will supersede this endorsement as

respect loss or damage from "Named Windstorm".

Definitions:

1. "Named Windstorm"

"Named Windstorm" is a storm that has been designated and named by the National Weather Service, including Hurricane and/or Tropical Storm.

2. "Wind and /or Hail"

Wind and/or Hail" means the direct and/or indirect action of wind and/or hail and all loss or damage resulting there from whether caused by wind, by hail

or by any other peril, other than fire or explosion, including, but not limited to, loss or damage caused when water, in any state, or rain, or sleet, or snow,

or sand, dust or any other substance, material or object is carried, blown, driven or otherwise transported by wind and/or hail onto or into the property

insured.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED

Countersigned By:

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 8 of 86 PAGEID #: 11
TO BE ATTACHED TO AND FORM PART OF THE EVIDENCE OR CERTIFICATE OF INSURANCE ISSUED TO:

CG Amber Woods Apartments LLC et al per attached schedule

Applicable To: AIN/PID Number: Refer to Schedule Property

Policy Number: Refer to Appendix 03 CCE-001 CO 0317

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CYBERONE COVERAGE AND DATA COMPROMISE COVERAGE

In consideration of a premium charged, it is agreed that following coverage change applies, but only to coverage provided at insured locations identified by

"Property Identification Numbers" where the Declarations Page or Evidence of Commercial Property Insurance issued to the Named Insured by CIBA

Insurance Services states that this endorsement applies.

CyberOne Coverage (Network Security Liability) and Data Compromise Coverage (Response Expenses and Defense and Liability) are included as provided

in the following coverage forms:

CyberOne Coverage - Form Number 01 C1 0314

Data Compromise Coverage - Form Number 03 DC 0314

Limits Apply "Per Account - Not "Per Location"

If a covered cause of loss occurs at more than one location in the same occurrence, the Limits of Liability in the CyberOne Coverage Form and the Data

Compromise Coverage Form are the most that the Company will pay for each "Account", irrespective of the number of locations included in an "Account".

Definition:

"Account" means the sum of all insured locations that are identified with the same Account Identification Number (AIN) in the Declarations Page or

Evidences Of Commercial Property Insurance that are issued for those insured locations.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED

Countersigned By:

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 9 of 86 PAGEID #: 12
Market Perils Limit % Policy # Admitted

Non-Admitted

AR EXCL EQ FL $3,000,000 100.0% CA3P005794171 Non-Admitted

AR EXCL EQ FL $1,000,000 14.3% PXAG9R817 Non-Admitted

AR EXCL EQ FL $2,625,000 37.5% CA3X000837171 Non-Admitted

AR EXCL EQ FL $875,000 12.5% ESP 2002142 00 Non-Admitted

AR EXCL EQ FL $525,000 7.5% 002712001 Non-Admitted

AR EXCL EQ FL $1,975,000 28.2% 1000255846-01 Non-Admitted

$7,000,000 100.0%

AR EXCL EQ FL $4,500,000 18.0% PXA9U1W17 Non-Admitted

AR EXCL EQ FL $5,000,000 20.0% PD-10157-03 Non-Admitted

AR EXCL EQ FL $2,750,000 11.0% MKLV11XP005614 Non-Admitted

AR EXCL EQ FL $1,500,000 6.0% 795005772 Non-Admitted

AR EXCL EQ FL $1,500,000 6.0% URS2542823.17 Non-Admitted

AR EXCL EQ FL $5,000,000 20.0% 001961203 Non-Admitted

AR EXCL EQ FL $4,750,000 19.0% XP264069 Non-Admitted

$25,000,000 100.0%

AR EXCL EQ FL $5,000,000 20.0% XP264068 Non-Admitted

AR EXCL EQ FL $8,875,000 35.5% MKLV11XP005614 Non-Admitted

AR EXCL EQ FL $2,625,000 10.5% ESP 2002142 00 Non-Admitted

AR EXCL EQ FL $5,000,000 20.0% 795005773 Non-Admitted

AR EXCL EQ FL $3,500,000 14.0% 73PRX179CB7 Non-Admitted

$25,000,000 100.0%

AR EXCL EQ FL $5,500,000 6.1% 795005774 Non-Admitted

AR EXCL EQ FL $10,000,000 11.1% ESP 2002142 00 Non-Admitted

AR EXCL EQ FL $5,000,000 5.6% XP264068 Non-Admitted

AR EXCL EQ FL $35,000,000 38.9% CA3X000837171 Non-Admitted

AR EXCL EQ FL $10,000,000 11.1% 001961303 Non-Admitted

AR EXCL EQ FL $24,500,000 27.2% RCPXRU000045-00 Non-Admitted

The CIBA program provides each Insured their own individual limits as specified on the Declaration page of the Member policy.

The Schedule below sets forth the participating insurers to the Insurance Program provided as part of your membership with CIBA. The Limits set forth

below are a combination of ‘Program Limits’ where carriers provide a combined limit for all insureds involved in a single loss occurrence and ‘Insured

Specific Limits’ where certain carriers provide limits to each Insured individually for each single loss occurrence.

For any insurer set forth below, whose participation is subject to an aggregate Limit for any specific peril, coverage, or participation, then that Limit is

the maximum amount payable to all CIBA Named Insureds combined for the term for the contract identified below, for that Insurers participation. Once

that Limit has been exhausted in accordance with the Policy contract terms, then the insurer set forth below will no longer have any further Liability

under this Insurance contract.

Notwithstanding the Limits set forth below, the individual limits and sublimits set forth in the Member Insurance Contract (AIN), to which this Schedule

is attached and incorporated therein by reference, are the only limits available for any one Named Insured and their identified insured locations(s)

identified by the property identification numbers (PID).

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 10 of 86 PAGEID #: 13
Market Perils Limit % Policy # Admitted

Non-Admitted

$90,000,000 100.0%

AR EXCL EQ FL $13,000,000 13.0% 795005775 Non-Admitted

AR EXCL EQ FL $5,000,000 5.0% XP264068 Non-Admitted

AR EXCL EQ FL $20,000,000 20.0% B1230AP01952A17 Non-Admitted

AR EXCL EQ FL $14,750,000 14.8% CA3X000837171 Non-Admitted

AR EXCL EQ FL $2,000,000 2.0% MKLV11XP005614 Non-Admitted

AR EXCL EQ FL $21,000,000 21.0% ESP 2002142 00 Non-Admitted

AR EXCL EQ FL $24,250,000 24.3% 001961503 Non-Admitted

$100,000,000 100.0%

AR EXCL EQ FL $18,500,000 7.4% PXAC92U17 Non-Admitted

AR EXCL EQ FL $16,500,000 6.6% PD-10157-03 Non-Admitted

AR EXCL EQ FL $15,000,000 6.0% 795005771 Non-Admitted

AR EXCL EQ FL $47,000,000 18.8% 1000255888-01 Non-Admitted

AR EXCL EQ FL $50,000,000 20.0% B1230AP01952A17 Non-Admitted

AR EXCL EQ FL $25,000,000 10.0% XP264069 Non-Admitted

AR EXCL EQ FL $25,000,000 10.0% 003107500 Non-Admitted

AR EXCL EQ FL $28,000,000 11.2% AJS0000510 Non-Admitted

AR EXCL EQ FL $25,000,000 10.0% XPP5532866-03 Non-Admitted

$250,000,000 100.0%

AR EXCL EQ FL $100,000,000 40.0% EXP7000151 Admitted

AR EXCL EQ FL $25,000,000 10.0% 795005776 Non-Admitted

AR EXCL EQ FL $25,000,000 10.0% 92GFP0100 Non-Admitted

AR EXCL EQ FL $30,000,000 12.0% LP0000888 Non-Admitted

AR EXCL EQ FL $3,000,000 1.2% LP0000888 Non-Admitted

AR EXCL EQ FL $67,000,000 26.8% AJS0000510 Non-Admitted

$250,000,000 100.0%

AR EXCL EQ FL $75,000,000 30.0% LHD399814 Non-Admitted

AR EXCL EQ FL $25,000,000 10.0% PRO0037150-05 Non-Admitted

AR EXCL EQ FL $85,000,000 34.0% 795005777 Non-Admitted

AR EXCL EQ FL $15,000,000 6.0% ESP 2002142 00 Non-Admitted

AR EXCL EQ FL $25,000,000 10.0% PX005JP17 Non-Admitted

AR EXCL EQ FL $25,000,000 10.0% 92GFP0100 Non-Admitted

$250,000,000 100.0%

AR EXCL EQ FL $3,500,000 50.0% PD-10157-03 Non-Admitted

AR EXCL EQ FL $3,500,000 50.0% CA3X001111171 Non-Admitted

$7,000,000 100.0%

AR EXCL EQ FL $3,000,000 100.0% XP264050 Non-Admitted

AR EXCL EQ FL $428,580 14.3% PXAG9R817 Non-Admitted

AR EXCL EQ FL $1,125,000 37.5% CA3X000837171 Non-Admitted

AR EXCL EQ FL $375,000 12.5% ESP 2002142 00 Non-Admitted

AR EXCL EQ FL $225,000 7.5% 002712001 Non-Admitted

AR EXCL EQ FL $846,420 28.2% 1000255846-01 Non-Admitted

$3,000,000 100.0%

AR EXCL EQ FL $3,500,000 50.0% AJS0000510 Non-Admitted

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 11 of 86 PAGEID #: 14
Market Perils Limit % Policy # Admitted

Non-Admitted

AR EXCL EQ FL $3,500,000 50.0% CA3X000837171 Non-Admitted

$7,000,000 100.0%

AR EXCL EQ FL $150,000,000 100.0% B1230AP04387A16 Non-Admitted

AR EXCL EQ FL $25,000,000 25.0% B1230AP03105A17 Non-Admitted

AR EXCL EQ FL $25,000,000 25.0% B1230AP03105C17 Non-Admitted

AR EXCL EQ FL $50,000,000 50.0% B1230AP03105D17 Non-Admitted

$100,000,000 100.0%

B&M $7,500,000 100.0% 059488-01-16 Non-Admitted

100.0% 059488-01-16 Non-Admitted

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 12 of 86 PAGEID #: 15
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PID: P00060091 Status: Renewed Appendix: PL

Terrorism: No Policy Term: 04/27/2017 - 04/27/2018 Liability Program: PmyLiability

Deductible: $2,500.00 unless otherwise endorsedNamed Insured: C

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Property Address: 7803, 7809, 7815, 7821 Dawn Road, Cincinnati, O

H 45237-0000

Property Type: Habitational No. of Units: 44 No. of Pools: 0 Ind./Com

m. Sq Ft: 0 Retail Sq Ft: 0 Res. Sq Ft: 54,000 Parking Sq Ft: 0

Active Endorsements: 02 M

PF-001 C

O 0317, 02 A

NI-001 E

X 0317, 02 D

W

P-001 E

X 0317, 02 M

E

P-025 O

T 0317, C

G 21 73 01 15

T

A

X

A

B

L

E

LIA

BILIT

Y

P

R

E

MIU

M: $3,275.00 SU

RP

L

US LIN

ES T

A

X

ES: $163.75

N

O

N-T

A

X

A

B

L

E

LIA

BILIT

Y

P

RE

MIU

M: $0.00 ST

A

M

PIN

G FE

ES: $0.00

T

A

X

A

B

L

E

LIA

BILIT

Y

T

E

R

R

O

RISM: $0.00 FIRE

M

A

RSH

A

L

L

T

A

X: $0.00

N

O

N-T

A

X

A

B

L

E

LIA

BILIT

Y

T

E

R

R

O

RISM: $0.00 ST

A

T

E SU

R

C

H

A

R

G

ES: $0.00

A

D

D'L ST

A

T

E/M

U

NICIP

A

L

C

H

A

R

G

ES: $0.00

T

O

T

A

LS:

T

A

X

A

B

L

E

LIA

BILIT

Y

P

R

E

MIU

M: $3,275.00 SU

RP

L

US LIN

ES T

A

X

ES: $163.75

N

O

N-T

A

X

A

B

L

E

LIA

BILIT

Y

P

RE

MIU

M: $0.00 ST

A

M

PIN

G FE

ES: $0.00

T

A

X

A

B

L

E

LIA

BILIT

Y

T

E

R

R

O

RISM: $0.00 FIRE

M

A

RSH

A

L

L

T

A

X: $0.00

N

O

N-T

A

X

A

B

L

E

LIA

BILIT

Y

T

E

R

R

O

RISM: $0.00 ST

A

T

E SU

R

C

H

A

R

G

ES: $0.00

A

D

D'L ST

A

T

E/M

U

NICIP

A

L

C

H

A

R

G

ES: $0.00

AIN: 32054L

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 13 of 86 PAGEID #: 16
CG Amber Woods Apartments LLC

AIN: 32054

Schedule of Additional Insureds and Certificate Holders

PID Property Address Mortgagee Name Address City State ZIP Reference No Addl Int No Cert Holder

No mortgagees on file for this location.

AIN: 32054L

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 14 of 86 PAGEID #: 17
TO BE ATTACHED TO AND FORM PART OF THE EVIDENCE OR CERTIFICATE OF INSURANCE ISSUED TO:

CG Amber Woods Apartments LLC et al per attached schedule

Applicable To: AIN/PID Number: Refer to Schedule Liability

Policy Number: Refer to Appendix 02 ANI-001 EX 0317

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

DOMESTIC ANIMAL LIABILITY

THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING:

 - COMMERCIAL GENERAL LIABILITY COVERAGE PART

In consideration of a premium charged, it is agreed that the following coverage change applies, but only with respect to coverage provided at all locations where The Commercial Industrial Building

Owner's Alliance ("CIBA") has issued a Declarations Page or a Certificate of Liability Insurance to the insured Associate and/or Additional Insured and such Certificate states that this endorsement

applies:

A. SECTION I - COVERAGES, COVERAGE A BODILY INJURY AND PROPERTY DAMAGE, Paragraph 2.

 Exclusions, and SECTION I - COVERAGES, COVERAGE B PERSONAL AND ADVERTISING INJURY, Paragraph

 2. Exclusions, are amended to include the following:

 Liability for Animals

 This insurance does not apply to "bodily injury", "property damage" or "personal and advertising injury"

 arising out of or resulting from any domestic animal, including bites, attacks or diseases.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED

Countersigned By:

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 15 of 86 PAGEID #: 18
TO BE ATTACHED TO AND FORM PART OF THE EVIDENCE OR CERTIFICATE OF INSURANCE ISSUED TO:

CG Amber Woods Apartments LLC et al per attached schedule

Applicable To: AIN/PID Number: Refer to Schedule Liability

Policy Number: Refer to Appendix 02 DWP-001 EX 0317

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

DESIGNATED WORK PERFORMED (RESIDENTIAL WORK - INCLUDING APARTMENT

CONVERSIONS) ENDORSEMENT

THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING:

 - COMMERCIAL GENERAL LIABILITY COVERAGE PART

 - PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART

In consideration of a premium charged, it is agreed that the following coverage change applies, but only with respect to coverage provided at all locations where The Commercial Industrial Building

Owner's Alliance ("CIBA") has issued a Declarations Page or a Certificate of Liability Insurance to the Insured Associate and/or Additional Insured and such Certificate states that this endorsement

applies:

1. SECTION I - COVERAGES, COVERAGE A BODILY AND PROPERTY DAMAGE LIABILITY, Paragraph 2.

 Exclusions, is amended to include the following:

 This insurance does not apply to "bodily injury" or "property damage" based upon, arising out of, directly

 or indirectly, in whole or in part, or in any way involving "your work" during the course of converting

 property to any "residential property".

 This exclusion applies to any properties or buildings that are now being converted or have been converted

 by anyone to "residential" occupancy.

2. SECTION I - COVERAGES, COVERAGE B PERSONAL AND ADVERTISING INJURY LIABILITY, Paragraph 2.

 Exclusions, is amended to include the following:

 This insurance does not apply to "personal and advertising injury" based upon, arising out of, directly or

 indirectly, in whole or in part, or in any way involving "your work" during the course of converting property

 to any "residential property".

 This exclusion applies to any properties or buildings that are now being converted or have been converted

 by anyone to "residential" occupancy.

3. SECTION V - DEFINITIONS is amended to include the following:

 "Residential property" means: (i) single family dwellings and single units of residential properties; (ii)

 condominiums; (iii) town homes or townhouses; (iv) planned unit developments; (v) row houses; (vi) co-

 operative housing; (vii) villas within a condominium association or homeowners association; (viii) master-

 planned housing; (ix) tract homes; (x) mass-produced single family homes; (xi) custom-built homes; and (xii)

 multi-family housing, intended for human residency.

 "Residential property" shall not include:

 (1) Apartment buildings that do not have any owner occupied units; or

 (2) Apartment buildings in which all of the individual units are rented.

"Your Work" means:

 1) Work or operations performed by you or on your behalf; and

 2) Materials, parts or equipment furnished in connection with such work or operations.

"Your Work" includes:

 1) Warranties or representations made at any time with respect to the fitness, quality, durability,

 performance or use of "your work" and

 2) The providing of or failure to provide warnings or instructions.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED

Countersigned By:

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 16 of 86 PAGEID #: 19
TO BE ATTACHED TO AND FORM PART OF THE EVIDENCE OR CERTIFICATE OF INSURANCE ISSUED TO:

CG Amber Woods Apartments LLC et al per attached schedule

Applicable To: AIN/PID Number: Refer to Schedule Liability

Policy Number: Refer to Appendix 02 MEP-025 OT 0317

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

MINIMUM EARNED PREMIUM ENDORSEMENT

THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING:

 - COMMERCIAL GENERAL LIABILITY COVERAGE PART

In consideration of a premium charged, it is agreed that the following coverage change applies, but only with respect to coverage provided at all locations where The Commercial Industrial Building

Owner's Alliance ("CIBA") has issued a Declarations Page or a Certificate of Liability Insurance to the insured Associate and/or Additional Insured and such Certificate states that this endorsement

applies:

A minimum earned premium equal to twenty five per cent (25%) of the annual premium applies to the Certificate of Liability Insurance to which this endorsement is attached, once the Certificate

becomes effective. No flat cancellation is allowed.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED

Countersigned By:

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 17 of 86 PAGEID #: 20
TO BE ATTACHED TO AND FORM PART OF THE EVIDENCE OR CERTIFICATE OF INSURANCE ISSUED TO:

CG Amber Woods Apartments LLC et al per attached schedule

Applicable To: AIN/PID Number: Refer to Schedule Liability

Policy Number: Refer to Appendix 02 MPF-001 CO 0317

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

GENERAL LIABILITY FORMS ENDORSEMENT

The following are the forms attached to and forming part of the policy at inception:

FORM NUMBER EDITION

DATE

FORM TITLE APPLIES TO THIS

CERTIFICATE

ASPGL074 05 11 Common Policy Declarations YES

ASPGL075 05 11 Commercial General Liability Declarations YES

ASPCO98 02 13 Signature Page YES

IL0017 11 98 Common Policy Conditions YES

SN-CA 06 12 California Notice YES

ASPGL006 01 04 Schedule of Applicable Forms YES

ASPCO002 02 13 General Service Of Suit Notice YES

ASPCO021 04 10 OFAC Endorsement YES

CG 00 01 12 07 Commercial General Liability Coverage Form YES

ASPGL001 01 04 Asbestos Exclusion Endorsement YES

ASPCBA 002 03 14 Employee Definition Endorsement – Exclusion for Injury to Temporary Workers YES

ASPCBA 006 03 14 Course of Construction Liability Exclusion For Phased Projects See Note 2

ASPCBA 007 03 14 Marine Exclusion Endorsement See Note 2

ASPCBA 008 03 14 Hired Auto And Non-Owned Auto Liability Endorsement YES

ASPCBA 009 03 14 Cross Suits Exclusion Endorsement YES

ASPCBA 010 03 14 Infestation And Vermin Coverage Change Endorsement (Designated Location) See Note 2

ASPCBA 011 03 14 Punitive or Exemplary Damages Exclusion Endorsement YES

ASPCBA 012 03 14 Personal And Advertising Injury Exclusion & Definition Change Endorsement YES

ASPCBA 013 03 14 Waiver of Subrogation Against Unit Owners Endorsement (Only Applicable To

State of Maryland)

See Note 2

ASPCBA 015 03 14 Hired Auto And Non-Owned Auto Exclusion Endorsement See Note 2

ASPCBA 016 03 14 Additional Insured Basic Primary Liability For Premises & Operations See Note 2

ASPCBA 017 03 14 Additional Insured Endorsement See Note 2

ASPCBA 018 03 14 Amendment to Per “Customer” Limit of Insurance For Customers’ Goods Legal

Liability And Sake And Disposal Endorsement

See Note 2

ASPCBA 019 03 14 Designated Work Performed (Residential Work – Including Apartment Conversions

Endorsement

YES

ASPCBA 021 03 14 Vacant Land Construction Activity Exclusion Endorsement See Note 2

ASPCBA 022 03 14 Association Valet Parking Change Endorsement See Note 2

ASPCBA 023 03 14 Weather Deductible Endorsement See Note 2

ASPCBA 024 03 14 Domestic Animal Liability Endorsement See Note 2

ASPCBA 027 03 14 Construction Operations Exclusion (With Non-Structural Improvement Exception)

Endorsement

YES

ASPCBA 030 03 14 Infestation And Vermin Exclusion Endorsement YES

ASPCBA 031 03 14 Named Insured Endorsement YES

ASPCBA 032 03 14 Stop Gap – Employers Liability Coverage Endorsement YES

ASPGL003 01 04 Total Lead Exclusion YES

ASPGL007 01 04 Silica Exclusion Endorsement YES

ASPGL041 05 04 Intellectual Property Infringement Exclusion YES

ASPGL044 05 04 Amendment – Common Policy Conditions YES

ASPGL098 04 06 Exclusion – Discrimination YES

ASPGL114 1206 Non-Duplication of Limits of Insurance Endorsement YES

ASPGL164 06 13 Continuous Or Progressive Injury or Damage Exclusion YES

ASPCO023 10 12 Nuclear, Biological, Chemical, Or Radiological Terrorism Exclusion YES

CG 00 62 12 02 War Exclusion YES

CG 00 68 05 09 Recording And Distribution Of Material Or Information In Violation Of Law YES

CG 02 12 11 85 Cancellation By Us YES

CG 04 35 12 07 Employee Benefits Liability Coverage YES

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 18 of 86 PAGEID #: 21
CG 21 35 10 01 Exclusion – Coverage C – Medical Payments YES

CG 21 44 07 98 Limitation Of Coverage To Designated Premises Or Project YES

CG 21 47 12 07 Employment – Related Practices Exclusion YES

CG 21 65 12 04 Total Pollution Exclusion with A Building Heating, Cooling and Dehumidifying

Equipment Exception and Hostile Fire Exception

YES

CG 21 67 12 04 Fungi or Bacteria Exclusion YES

CG 21 70 01 15 Cap on Losses from Certified Acts of Terrorism See Note 1

CG 21 73 01 15 Exclusion of Certified Acts of Terrorism See Note 1

CG 24 26 07 04 Amendment of Insured Contract Definition YES

CG 25 04 05 09 Designated Location(s) General Aggregate Limit YES

IL 00 03 09 08 Calculation of Premium YES

IL 00 21 09 08 Nuclear Energy Liability Exclusion Endorsement YES

IL 09 85 01 15 Disclosure Pursuant to Terrorism Risk Insurance Act See Note 1

ASPGL 139 10 12 Policyholder’s Guide to Reporting a Casualty Claim YES

ASPCBA 001 03 14 Commercial Storage Insurance Amendatory Endorsement See Note 2

ASPCBA 005 03 14 Course Of Construction Liability Limitation Endorsement See Note 2

CG 21 16 07 98 Exclusion – Designated Professional Services YES

ASPCBA 033 03 14 Deductible Liability Insurance YES

ASPCBA 035 05 15 Minimum Earned Premium Endorsement YES

ASPCBA 036 06 15 Medical Payments Change Endorsement (Designated Location) See Note 2

ASPCBA 037 07 15 Habitability Exclusion Endorsement See Note 2

NOTES:

1. Certified Terrorism Coverage - applies only if the Named Insured accepted Certified Terrorism Offer for the location specified in the Declarations Page or Certificate Of Liability

Insurance and Certified Terrorism Premium is paid at inception of coverage. If the Named Insured does not accept the Certified Terrorism Offer for the location specified in the

Declarations Page or Certificate of Liability Insurance, then the Exclusion of Certified Acts of Terrorism endorsement applies as respects that location.

2. Discretionary Endorsement – Applies Only if Specified in the Declarations Page or Certificate of Liability Insurance issued to the Named Insured by CIBA.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED

Countersigned By:

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 19 of 86 PAGEID #: 22
TO BE ATTACHED TO AND FORM PART OF THE EVIDENCE OR CERTIFICATE OF INSURANCE ISSUED TO:

CG Amber Woods Apartments LLC et al per attached schedule

Applicable To: AIN/PID Number: Refer to Schedule Liability

Policy Number: Refer to Appendix CG 21 73 01 15

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

EXCLUSION OF CERTIFIED ACTS OF TERRORISM

This endorsement modifies insurance provided under the following:

 - COMMERCIAL GENERAL LIABILITY COVERAGE PART

 - LIQUOR LIABILITY COVERAGE PART

 - OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART

 - PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART

 - RAILROAD PROTECTIVE LIABILITY COVERAGE PART

 - UNDERGROUND STORAGE TANK POLICY

A. The following exclusion is added:

 This insurance does not apply to:

 TERRORISM

 "Any injury or damage" arising, directly or indirectly, out of a "certified act of terrorism".

B. The following definitions are added:

 1. For the purposes of this endorsement, "any injury or damage" means any injury or damage covered

 under any Coverage Part to which this endorsement is applicable, and includes but is not limited to

 "bodily injury", "property damage", "personal and advertising injury", "injury" or "environmental

 damage" as may be defined in any applicable Coverage Part.

 2. "Certified act of terrorism" means an act that is certified by the Secretary of the Treasury, in accordance

 with the provisions of the federal Terrorism Risk Insurance Act, to be an act of terrorism pursuant to such

 Act. The criteria contained in the Terrorism Risk Insurance Act for a "certified act of terrorism" include

 the following:

 a. The act resulted in insured losses in excess of $5 million in the aggregate, attributable to all types of

 insurance subject to the Terrorism Risk Insurance Act; and

 b. The act is a violent act or an act that is dangerous to human life, property or infrastructure and is

 committed by an individual or individuals as part of an effort to coerce the civilian population of the

 United States or to influence the policy or affect the conduct of the United States Government by

 coercion.

C. The terms and limitations of any terrorism exclusion, or the inapplicability or omission of a terrorism

 exclusion, do not serve to create coverage for injury or damage that is otherwise excluded under this

 Coverage Part.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED

Countersigned By:

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 20 of 86 PAGEID #: 23
Market Perils Limit % Policy # Admitted

Non-Admitted

GL 0.0% CR005HN17 Non-Admitted

0.0% CR005HN17 Non-Admitted

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 21 of 86 PAGEID #: 24
THE INSURANCE HEREBY EVIDENCED IS WRITTEN BY AN APPROVED NON-LICENSED INSURER IN

THE STATE OF OHIO AND IS NOT COVERED IN CASE OF INSOLVENCY BY THE OHIO INSURANCE

GUARANTY ASSOCIATION.

SurplusLinesDisclosure

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 22 of 86 PAGEID #: 25
CIBA 2017 Insured AR Property 02102017 Page - 1

NOTICE:

1. THE INSURANCE POLICY THAT YOU ARE APPLYING

TO PURCHASE IS BEING ISSUED BY AN INSURER

THAT IS NOT LICENSED BY THE STATE OF

CALIFORNIA. THESE COMPANIES ARE CALLED

"NONADMITTED" OR "SURPLUS LINE" INSURERS.

2. THE INSURER IS NOT SUBJECT TO THE FINANCIAL

SOLVENCY REGULATION AND ENFORCEMENT

THAT APPLY TO CALIFORNIA LICENSED INSURERS.

3. THE INSURER DOES NOT PARTICIPATE IN ANY OF

THE INSURANCE GUARANTEE FUNDS CREATED BY

CALIFORNIA LAW. THEREFORE, THESE FUNDS

WILL NOT PAY YOUR CLAIMS OR PROTECT YOUR

ASSETS IF THE INSURER BECOMES INSOLVENT AND

IS UNABLE TO MAKE PAYMENTS AS PROMISED.

4. THE INSURER SHOULD BE LICENSED EITHER AS A

FOREIGN INSURER IN ANOTHER STATE IN THE

UNITED STATES OR AS A NON-UNITED STATES

(ALIEN) INSURER. YOU SHOULD ASK QUESTIONS OF

YOUR INSURANCE AGENT, BROKER, OR “SURPLUS

LINE” BROKER OR CONTACT THE CALIFORNIA

DEPARTMENT OF INSURANCE AT THE FOLLOWING

TOLL-FREE TELEPHONE NUMBER: 1-800-927-4357.

ASK WHETHER OR NOT THE INSURER IS LICENSED

AS A FOREIGN OR NON-UNITED STATES (ALIEN)

INSURER AND FOR ADDITIONAL INFORMATION

ABOUT THE INSURER. YOU MAY ALSO CONTACT

THE NAIC’S INTERNET WEB SITE AT

WWW.NAIC.ORG.

5. FOREIGN INSURERS SHOULD BE LICENSED BY A

STATE IN THE UNITED STATES AND YOU MAY

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 23 of 86 PAGEID #: 26
CIBA 2017 Insured AR Property 02102017 Page - 2

CONTACT THAT STATE’S DEPARTMENT OF

INSURANCE TO OBTAIN MORE INFORMATION

ABOUT THAT INSURER.

6. FOR NON-UNITED STATES (ALIEN) INSURERS, THE

INSURER SHOULD BE LICENSED BY A COUNTRY

OUTSIDE OF THE UNITED STATES AND SHOULD BE

ON THE NAIC’S INTERNATIONAL INSURERS

DEPARTMENT (IID) LISTING OF APPROVED

NONADMITTED NON-UNITED STATES INSURERS.

ASK YOUR AGENT, BROKER, OR “SURPLUS LINE”

BROKER TO OBTAIN MORE INFORMATION ABOUT

THAT INSURER.

7. CALIFORNIA MAINTAINS A LIST OF APPROVED

SURPLUS LINE INSURERS. ASK YOUR AGENT OR

BROKER IF THE INSURER IS ON THAT LIST, OR

VIEW THAT LIST AT THE INTERNET WEB SITE OF

THE CALIFORNIA DEPARTMENT OF INSURANCE:

WWW.INSURANCE.CA.GOV.

8. IF YOU, AS THE APPLICANT, REQUIRED THAT THE

INSURANCE POLICY YOU HAVE PURCHASED BE

BOUND IMMEDIATELY, EITHER BECAUSE EXISTING

COVERAGE WAS GOING TO LAPSE WITHIN TWO

BUSINESS DAYS OR BECAUSE YOU WERE REQUIRED

TO HAVE COVERAGE WITHIN TWO BUSINESS DAYS,

AND YOU DID NOT RECEIVE THIS DISCLOSURE

FORM AND A REQUEST FOR YOUR SIGNATURE

UNTIL AFTER COVERAGE BECAME EFFECTIVE,

YOU HAVE THE RIGHT TO CANCEL THIS POLICY

WITHIN FIVE DAYS OF RECEIVING THIS

DISCLOSURE. IF YOU CANCEL COVERAGE, THE

PREMIUM WILL BE PRORATED AND ANY BROKER’S

FEE CHARGED FOR THIS INSURANCE WILL BE

RETURNED TO YOU.

D-1 (Effective July 21, 2011)

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 24 of 86 PAGEID #: 27
CIBA 2017 Insured AR Property 02102017 Page - 3

Words or phrases that appear in quotation marks have special meaning. Refer to Section 43. – Definitions.

CHOICE OF LAW AND JURISDICTION:

In the event of any dispute arising between the Named Insured and Insurer concerning this policy, the

following Law and Jurisdiction clause shall apply:

Law: This policy shall be subject to the applicable state law for the insured location as identified in the

Declarations page by its “Property Identification Number”.

Jurisdiction: Jurisdiction over such dispute will with the state law for the insured location as identified in the

Declarations page by its “Property Identification Number”.

SERVICE OF SUIT CLAUSE (U.S.A.)

It is agreed that in the event of the failure of the Insurer hereon to pay any amount claimed to be due

hereunder, the Insurer hereon, at the request of the specific Named Insured, will submit to the jurisdiction of

a Court of competent jurisdiction within the United States for the insured location as identified in the

Declarations page by its “Property Identification Number”. Nothing in this Clause constitutes or should be

understood to constitute a waiver of the Insurer’s rights to commence an action in any Court of competent

jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of

a case to another Court as permitted by the laws of the United States or of any State in the United States.

It is further agreed that service of process in such suit may be made upon

 Thomas M. Dawson

 Drinker Biddle & Reath LLP

 1177 Avenue of the Americas, 41st Floor

 New York, NY 10036-2714

 UNITED STATES OF AMERICA

and that in any suit instituted against the insurer, the Insurer will abide by the final decision of such Court or

of any Appellate Court in the event of an appeal.

The above-named are authorized and directed to accept service of process on behalf of the Insurer in any

such suit and/or upon the request of the specific Named Insured to give a written undertaking to the specific

Named Insured that they will enter a general appearance upon the Insurer’s behalf in the event such a suit

shall be instituted.

Further, pursuant to any statute of any state, territory or district of the United States which makes provision

therefor, the Insurer hereon hereby designate the Superintendent, Commissioner or Director of Insurance or

other officer specified for that purpose in the statute, or his successor or successors in office, as its true and

lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by

or on behalf of a specific Named Insured or any beneficiary hereunder arising out of this contract of

insurance, and hereby designate the above-named as the person to whom the said officer is authorized to mail

such process or a true copy thereof.

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 25 of 86 PAGEID #: 28
CIBA 2017 Insured AR Property 02102017 Page - 4

PREMIUM PAYMENT CLAUSE

The Named Insured as set forth on the Declarations page of this policy undertakes that premium will be paid

in full to CIBA Insurance Services Inc. on behalf of the Insurer within 30 (thirty) days of inception of this

policy (or, in respect of installment premiums, when due).

If the premium due under this policy has not been so paid to CIBA Insurance Services Inc. on behalf of the

Insurer by the 30th (thirtieth) day from the inception of this policy (and, in respect of installment premiums,

by the date they are due) the Insurer shall have the right to cancel this policy by notifying the specific Named

Insured via CIBA Insurance Services, Inc. in writing. In the event of cancellation, premium is due to the

Insurer on a pro rata basis for the period that the Insurer is on risk but the full policy premium shall be payable

to the Insurer in the event of a loss or “occurrence” prior to the date of termination which gives rise to a valid

claim under this policy.

It is agreed that the Insurer shall give not less than 10 days prior notice of cancellation to the Named Insured

via CIBA Insurance Services, Inc. If premium due is paid in full to the Insurer before the notice period

expires, notice of cancellation shall automatically be revoked. If not, the policy shall automatically terminate

at the end of the notice period.

If any provision of this clause is found by any court or administrative body of competent jurisdiction to be

invalid or unenforceable, such invalidity or unenforceability will not affect the other provisions of this clause

which will remain in full force and effect.

Case: 1:18-cv-00512-TSB Doc #: 1-1 Filed: 07/25/18 Page: 26 of 86 PAGEID #: 29
CIBA 2017 Insured AR Property 02102017 Page - 5

ALL RISK PROPERTY COVERAGE FORM

CIBA - 2017

Subject to the terms, conditions, limitations and exclusions hereinafter contained or added by endorsement(s),

this Policy insures Real and Personal Property (including Improvements and Betterments) of the Named Insured,

or property for which the Named Insured may be held legally liable, against ALL RISKS OF DIRECT

PHYSICAL LOSS OR DAMAGE EXCLUDING “FLOOD” AND “EARTH MOVEMENT” occurring during

the policy period.

The word “Underwriter(s)”, Insurer(s)” or “Company” wherever it appears in this policy means the schedule

of participating insurers referenced in (Appendix 1) attached to and forming part of this policy and subject to

any notices contained herein.

Wherever '$' or USD appears herein these are deemed to read 'United States Dollars'

Named Insured: Per the Declarations page of this policy

Mailing Address: Per the Declarations page of this policy

1. POLICY PERIOD

In consideration of premium paid, this policy attaches and covers for the period as set forth in the

Declarations page beginning and ending at 12:01 A.M., Standard Time, at the location as set forth in the

Declarations page.

2. LIMITS OF LIABILITY

a. The Company shall not be liable for more than the limits set forth in the Declarations page

except for interests, or perils, which are sub-limited in clause 2.b. or further sub-limited by

endorsement(s) to this Policy.

b. Sub-limits of Liability

Inclusive within the limits of liability set forth in the Declarations page are the following

sub-limits unless otherwise stated in the Declarations page or endorsed hereafter:

(1) Valuable Papers & Records $ 100,000

(2) Accounts Receivable $ 250,000

(3) Professional Fees $ 100,000

(4) Landscaping, Trees, Shrubs, Plants and Lawns $ 250,000

further sub-limited maximum per item limit of:

Per Tree or Lawn $ 10,000

Per Shrub or Plant $ 500

(5) Emergency Vacating Expense $ 100,000

(6) Tenant Relocation Expense $ 100,000

subject to a maximum payment per unit of $ 5,000

(7) Locks and Keys $ 25,000

(8) Pools, tennis courts, playgrounds, recreational equipment $ 500,000

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(9) Pollution Cleanup and Removal Costs

except for Asbestos Removal which is further limited to

$

$

100,000

25,000

(10) Debris Removal Costs And Expenses 25% of adjusted loss

amount not to exceed

$5,000,000

(11) Building Ordinance, Demolition & Increased Cost Of

Construction -

The following sub-limits apply to Building Ordinance,

Demolition & Increased Cost of Construction except as

otherwise stated in the Declarations page or endorsed

hereafter;

Coverage A: Undamaged Portion $ Included

Coverage B: Demolition $ 100,000

Coverage C: Increased Cost of Construction $ 100,000

Coverage D: Loss of Income $ 50,000

(12) Additions under construction, alterations and repairs to

Real Property, including materials, equipment and

supplies, except as otherwise stated in the Declarations

page or endorsed hereafter

$ 25,000

(13) Business Personal Property including “Fine Arts”, except

as otherwise stated in the Declarations page or endorsed

hereafter

$ 100,000

(14) Mold, Fungi, Wet or Dry Rot and Bacteria $ 10,000

(15) Off-Premises Services Interruption $ 100,000

(16) Fire Fighting Materials or Expenses $ 100,000

(17) Increased Tax Liability for Rental Income $ 25,000

(18) Arson Reward 10% of Adjusted

claim; not to exceed

$25,000

(19)

(20)

Back Up or Overflow of Sewers and Drains, except as

otherwise stated in the Declarations page or endorsed

hereafter

Expediting Expense

$

$

100,000

25,000

3. DEDUCTIBLE

a. Each claim for loss, damage or expense arising out of any one “occurrence” at the insured

location as identified by its “Property Identification Number” submitted shall be adjusted as

one claim, and from the amount of such adjusted claim, there shall be deducted the applicable

deductible amount specified in the Declarations page attached hereto or endorsed hereafter.

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b. If two or more deductible amounts apply to a claim at a single location, the total to be deducted

shall not exceed the largest deductible that applies, with such larger deductible being applied

to the entire loss at the insured location.

4. LOSS PAYABLE

Loss, if any, shall be adjusted with and payable to the specific Named Insured, through Claims

Adjusting Group. The Named Insured’s receipt of loss payment shall constitute a release in full of all

liability under this policy with respect to such loss.

5. TERRITORY

This policy covers insured locations within the fifty states of the United States of America, and the

District of Columbia.

6. COVERAGE

Except as hereinafter excluded, this policy covers the following described property including the actual

Loss of Income sustained by the Named Insured at location(s) described in the applicable Declarations

page issued to the Named Insured

a. (1) Real Property

The interest of the Named Insured in all real property, including improvements and

betterments, foundations and supports, flues, wiring and plumbing, owned, used, or

intended for use by the Named Insured, or hereafter constructed, erected, or

installed.

If not covered by other insurance: (a) additions under construction, alterations and

repairs to “buildings” or structures and (b) materials, equipment, supplies and

temporary structures, on or within 100 feet of the location described in the

Declarations page, used for making additions, alterations or repairs to the

"buildings” or structures.

In the event of loss or damage, the Company agrees to accept and consider the

Named Insured as sole and unconditional owner of improvements and betterments,

notwithstanding any contract or leases to the contrary.

The interest of the Named Insured in the Real Property of others in the Named

Insured’s care, custody, or control, and the Named Insured’s liability imposed by

law or assumed by written contract for such property.

Contractors’ interest in real property is covered to the extent of the Named Insureds

liability imposed by law or assumed by written contract.

Personal property owned by the Named Insured that is used to maintain or service

the “buildings” or structures or the premises, including fire extinguishing equipment,

outdoor furniture, floor coverings, and appliances used for refrigerating, ventilating,

cooking, dishwashing or laundering.

 (2) Business Personal Property

The interest of the Named Insured in all business personal property, including “Fine

Arts” and “Electronic Data Processing Equipment” and “Electronic Data Processing

Media”, located in or on the “described premises” or within 1,000 feet of the

“described premises”, consisting of furniture and fixtures, machinery and

equipment, computer hardware and media and “Fine Arts”.

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At the option of the Named Insured, personal property belonging or in use by the

Named Insured’s officials, employees and volunteers while at the “described

premises”.

The interest of the Named Insured in the personal property of others in the Named

Insured’s care, custody or control, and the Named Insured’s liability imposed by law

or assumed by written contract for such property.

b. Loss of Income

(1) This policy is extended to cover the actual Loss of Income sustained by the Named

Insured resulting directly from the necessary untenantability caused by direct

physical loss, damage, or destruction by any of the perils covered herein during the

term of the policy to real or personal property as described in clause 6. a., but not

exceeding the reduction in income less charges and expenses which do not

necessarily continue during the period of untenantability, not to be limited by the

expiration date of this policy.

For the purpose of this insurance “income” is defined as the sum of:

(a) The gross rental income from the rented portions of such property

according to bona fide leases, contracts or agreements in force at the time

of loss;

(b) The fair rental value of any portion of the property occupied by the Named

Insured; and,

(c) Income from loss of monthly condominium fees, but only if stated in the

Declarations page

Less non-continuing charges and expenses.

(2) For purposes of determining the loss payable for Loss of Income, the period of

indemnity is defined as:

(a) The period from the time of direct physical damage insured by this policy

to the time when, with due diligence and dispatch, physically damaged

“buildings” could be:

(i) repaired or replaced, and

(ii) business operations could have commenced,

not limited by the expiration date of this policy. In no event will the period of

indemnity exceed twenty-four (24) months from the date of loss.

(3) For purposes of determining the loss payable for alterations or additions to existing

property and for property under the course of construction, the rental value will be

determined from:

(a) The period of time of direct physical damage not excluded by this policy,

when the property would have been completed if the direct physical loss or

damage had not occurred, to the time when, with due diligence and

dispatch, physically damaged alterations, additions or “buildings” could

be:

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(i) repaired or replaced, and

(ii) business operations could have commenced

had no physical damage occurred to the covered property.

(4) The period of interruption:

(a) will include that period for which physically damaged or destroyed

building materials and supplies are replaced, and

(b) the additional time required for the demolition and removal of debris.

(5) Expense to reduce loss:

This policy also covers such expenses as are necessarily incurred for the purpose of

reducing any loss under this policy. Such coverage, however, shall not exceed the

amount by which the loss under this policy is thereby reduced.

(6) Experience of the business:

In determining the amount of income covered hereunder, due consideration shall be

given to the rental experience before the date of damage or destruction and the

probable experience thereafter had no loss occurred.

(7) Extended Period of Indemnity

This policy covers the actual loss of income sustained during the period that begins

on the date the property is actually repaired, rebuilt or replaced and ends on the

earlier of:

(a) The date the property could, with due diligence and dispatch, be

re-occupied on the same or equivalent rental terms and conditions that

existed prior to such loss or damage;

(b) 180 days after the date the property is actually repaired, rebuilt or replaced.

(8) Special Exclusion

This section of the policy does not insure against any increase of loss which may be

occasioned by the suspension, lapse, or cancellation of any lease, license, contract, or

order nor for any increase of loss due to interference at the Named Insured's

designated premises by strikers or other persons with rebuilding, repairing, or

replacing the property damaged or destroyed, or with the resumption of continuation

of business, or with the re-occupancy of the premises.

c. Extra Expense

Extra Expense means reasonable and necessary expenses incurred by the Named Insured

during the period of interruption that the Named Insured would not have incurred if there had

been no direct physical loss or damage to property caused by or resulting from a peril insured

against. Extra Expense does not change, add, or otherwise alter the limits of liability as set

forth in the Declarations page or in Clause 2.b. as set forth herein.

(1) The Company will pay any Extra Expense to avoid or minimize the suspension of

business and to continue operations:

(a) At the “described premises”; or

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(b) At replacement premises or at temporary locations, including:

(i) Relocation expenses; and,

(ii) Costs to equip and operate the replacement or temporary

 locations.

(2) The Company will pay any Extra Expense to minimize the suspension of business if

the Named Insured cannot continue operations;

(3) The Company will pay any Extra Expense to repair or replace any property to the

extent it reduces the amount of loss that otherwise would have been payable under

this policy.

to the extent it reduces the amount of loss that otherwise would have been payable

under this policy.

(4) Tenant Relocation Expense

This policy is extended to cover relocation expenses incurred by the Named

Insured to relocate residents, tenants or lawful occupants to other living quarters

in the shortest possible time when rented space or living quarter(s) at a described

location are made uninhabitable as a direct result of physical loss or damage from

a peril insured by this policy.

(a) Coverage is limited to the reasonable and necessary expense of:

(i) Packing, sorting, and transportation cost for personal property;

(ii) Reestablishing new utility services, less refunds from

discontinued services, at the damaged location;

(iii) Searching for new living quarters;

(iv) Disconnecting and reconnecting fixtures and equipment; and,

(v) Storage costs while awaiting possession of other living quarters

or restoration of existing quarters.

(b) No coverage is provided for:

(i) Loss caused by the termination of a lease or other agreement;

(ii) Security deposits or other payments made to the landlord or

lessors of the new living quarters;

(iii) Down payments, legal fees and closing costs for the purchase of

new living quarters; or;

(iv) Loss resulting from Off Premises Services Interruption,

Interruption by Civil or Military Authority, or Ingress/Egress

except as otherwise provided in Clause 6 d. (1), (2), and (3).

The limit of liability will not exceed the applicable limit of insurance shown in the

sublimits of Clause 2.b.

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d. Provisions Applicable To Loss of Income and Extra Expense

(1) Off-Premises Services Interruption

This policy is extended to cover the actual loss sustained and necessary Extra

Expense incurred during the period of time when, as a direct result of physical

damage within five (5) miles of the premises by a peril insured against, electrical,

steam, gas, water or telephone services to the “described premises” are interrupted.

(2) Interruption by Civil or Military Authority

This policy is extended to cover the actual loss sustained and necessary Extra

Expense incurred during the period of time when, as a direct result of physical

damage within five (5) miles of the premises by a peril insured against, access to the

“described premises” is prohibited by order of civil or military authority. The

maximum period of indemnity in respect of this extension shall not exceed 30

consecutive days from the date of that order.

(3) Ingress/Egress

This policy is extended to cover the actual loss sustained and necessary Extra

Expense during the period of time when, as a direct result of physical damage within

five (5) miles of the premises by a peril insured against, ingress to or egress from the

“described premises” is thereby prevented. The maximum period of indemnity in

respect of this extension shall not exceed 30 consecutive days.

e. Accounts Receivable

Accounts receivable are defined as:

(1) All sums due to the Named Insured from customers, provided the Named Insured is

unable to effect collection thereof as the direct result of loss or damage to records of

accounts receivable;

(2) Collection expense in excess of normal collection cost and made necessary because

of such loss or damage; and,

(3) Other expenses, when reasonably incurred by the Named Insured in re-establishing

records of accounts receivable following such loss or damage.

For the purpose of this insurance, credit card company charge media shall be deemed to

represent sums due the Named Insured from customers, until such charge media is delivered

to the credit card company.

When there is proof that a loss of records of accounts receivable has occurred, but the Named

Insured cannot more accurately establish the total amount of accounts receivable outstanding

as of the date of such loss, such amount shall be computed as follows:

(a) The monthly average of accounts receivable during the last available twelve

months shall be adjusted in accordance with the percentage increase or

decrease in the twelve months average of monthly gross revenues which may

have occurred in the interim;

(b) The monthly amount of accounts receivable thus established shall be further

adjusted in accordance with any demonstrable variance from the average for

the particular month in which the loss occurred, due consideration also being

given to the normal fluctuations in the amount of accounts receivable within

the fiscal month involved.

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There shall be deducted from the total amount of accounts receivable, however established,

the amount of such accounts evidenced by records not lost or damaged, or otherwise

established or collected by the Named Insured, and an amount to allow for probable bad debts

which would normally have been uncollectible by the Named Insured.

The limit of liability will not exceed the applicable limit of insurance shown in the sublimits of

Clause 2.b.

f. “Electronic Data Processing Equipment” and “Electronic Data Processing Media”

The following terms and conditions shall apply to electronic data processing coverage in

addition to those terms and conditions elsewhere in this policy form. In the event any of the

following is in conflict with terms and conditions elsewhere in this policy form, the following

terms will supersede any other:

(1) The following is covered as part of Business Personal Property: “Electronic Data

Processing Equipment” and Electronic Data Processing Media” including the

information recorded therein for direct loss or damage and for any resultant Extra

Expense.

(2) The following exclusions are added to this policy form.

This policy does not insure:

(a) Loss or damage caused by error in machine programming;

(b) Loss or damage caused by or arising out of infidelity by an employee of the

Named Insured. A willful act of malicious intent or damage caused by

unauthorized entry shall be deemed not to be an act of infidelity and shall

be covered under this policy;

(3) How loss is settled:

(a) “Electronic Data Processing Equipment” and “Electronic Data Processing

Media” and information therein;

The measure of recovery shall be the cost of replacement or reproduction

with other of like kind and quality; if not replaced or reproduced the

Company will pay the blank value of the media.

(b) Extra Expense

The necessary extra expense incurred by the Named Insured in order to

continue as nearly as practical the normal conduct of the Named Insured’s

Data Processing operation following loss or damage to property covered

under this section of the policy by a peril not otherwise excluded, whether

or not such Extra Expense reduces the amount of loss that would have

otherwise been payable under the business interruption section of this

policy. However, no payment shall be made under this section if the same

is otherwise collectible under the business interruption section.

g. “Fine Arts”

Coverage is hereby provided as part of Business Personal Property for “Fine Arts” which are

either the “Fine Arts” of the Named Insured or the “Fine Arts” of others in custody of the

Named Insured while at the locations designated elsewhere in this policy (if any) or anywhere

else within the territorial definition of this policy temporarily, and while on exhibition.

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In the event of the total loss of any article or articles which are a part of a set, the Company

agrees to pay the Named Insured the full amount of the value of such set, as specified in the

Declarations page, and the Named Insured agrees to surrender the remaining parts of the set to

the Company.

The limit of liability for “Fine Arts” will not exceed $100,000 or the Business Personal

Property Limit, whichever is the lesser amount.

 h. Valuable Papers and Records

This policy covers Valuable Papers. The following terms and conditions shall apply, as well as

those terms and conditions elsewhere in this policy form: "Valuable Papers and Records" are

defined as written, printed, or otherwise inscribed documents and records, including, but not

limited to, books, maps, films, drawings, abstracts, deeds, mortgages, micro-inscribed

documents, manuscripts and media but not including money and/or securities. This extension

does not apply to valuable papers and records which exist as “electronic data processing

media.”

The limit of liability will not exceed the applicable limit of insurance shown in the sublimits of

Clause 2.b.

i. Emergency Vacating Expense

This policy is extended to cover the reasonable expenses incurred by the Named Insured when

an authorized governmental agency or other similar authority orders the emergency

evacuation of residents, tenants or lawful occupants from an insured “building” as a result of

an immediately impending insured peril that threatens imminent physical danger or loss of life

to such occupants, but not to exceed the applicable limit of insurance shown in the policy.

No coverage is provided if the vacating results from a planned evacuation drill, evacuation of

any resident because of a medical condition(s), or a false alarm.

The limit of liability will not exceed the applicable limit of insurance shown in the sublimits of

Clause 2.b.

j. Locks and Keys

This policy is extended to cover the reasonable and necessary expense incurred by the Named

Insured for replacing locks and keys resulting from insured physical loss or damage.

Coverage includes the actual cost to:

(1) Replace;

(2) Adjust,

(3) Reprogram

Locks to accept new keys or entry codes.

The limit of liability will not exceed the applicable limit of insurance shown in the sublimits of

Clause 2.b.

k. Increased Tax Liability for Rental Income

This policy is extended to cover increased tax liability incurred by the Named Insured as a

direct result of direct physical loss or damage insured by this policy to property not excluded

by this policy on the covered loss of rental income portion of a loss recovery, if the tax liability

is greater than the amount that would have been incurred had no loss occurred. This policy

will cover only the increased tax liability for the profit portion of the rental income loss.

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The limit of liability will not exceed the applicable limit of insurance shown in the sublimits of

Clause 2.b.

l. Arson Reward

This policy is extended to cover payment of any reward offered on the Named Insured behalf

for information that leads to conviction of the perpetuator(s) of arson (fire) and vandalism to

insured property that sustains physical loss or damage insured by this policy. The Company’s

total liability for any one “occurrence” will not exceed the amount set forth in Clause 2.b.

Regardless of the number of informants providing information that leads to a conviction, the

Company’s payment of this reward will not exceed the amount set forth in Clause 2.b.

m. Back Up or Overflow of Sewer or Drains

Coverage is extended for loss or damage that results from back up or overflow of sewers or

sump pump wells or similar devices designed to prevent overflow seepage or leakage of

subsurface water that occurs during the policy period. However, no coverage is extended for

loss or damage that results from sewer or sump overflow resulting from “Flood”.

The Company will not pay more under this extension than the applicable sublimit stated in this

policy as set forth in Clause 2.b.

n. Business Personal Property While Off Premises or In Transit

The policy is extended to cover Business Personal Property while it is in the course of transit

within the Policy Territory or at premises that are not described in the Declarations page. The

limit of liability for Business Personal Property While Off- Premises or In Transit will not

exceed $100,000 or the Business Personal Property Limit, whichever is the lesser amount.

7. PERILS EXCLUDED

a. This policy does not insure against loss or damage caused directly or indirectly by, to, or

resulting from any of the following. Loss or damage is excluded regardless of any cause or

event whether or not insured under this policy that contributes concurrently or in any sequence

to the loss or damage.

(1) Any fraudulent or dishonest act or acts committed by the Named Insured or any of

the Named Insured’s employees meaning only dishonest or fraudulent acts

committed by the Named Insured or the Named Insured's employees with the

manifest intent to:

(a) cause the Named Insured to sustain such loss; and

(b) obtain financial benefit for the Named Insured, Named Insured’s

employee, or for any other person or organization intended by the Named

Insured or the employee to receive such benefit, other than salaries,

commissions, fees, bonuses, promotions, awards, profit sharing pensions,

or other employee benefits earned in the normal course of employment;

(2) Nuclear reaction, nuclear radiation, or radioactive contamination, all whether

controlled or uncontrolled and whether such loss be direct or indirect, proximate, or

remote, or be in whole or in part caused by, contributed to, or aggravated by the

peril(s) insured against in this policy except:

(a) If fire ensues, liability is specifically assumed for direct loss by such

ensuing fire but does not include any loss due to nuclear reaction, nuclear

radiation, or radioactive contamination;

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(b) The Company shall be liable for loss or damage caused by sudden and

accidental Radioactive Contamination including resultant radiation

damage for each “occurrence” from material used or stored or from

processes conducted on insured premises provided at the time of loss there

is neither a nuclear reactor capable of sustaining nuclear fission in a

self-supporting chain reaction nor any new or used nuclear fuel on the

insured premises;

(3) (a) Any hostile or warlike action in time of peace or war, including action in

 hindering, combating, or defending against an actual, impending or

 expected attack:

(i) by any government or sovereign power (de jure or de facto) or by

any authority maintaining or using military, naval, or air forces;

(ii) or by military, naval or air forces;

(iii) or by an agent of any such government, power, authority or

forces;

(b) Any weapon employing atomic fission or fusion;

(c) Any rebellion, revolution, civil war, usurped power, or action taken by

governmental authority in hindering, combating, or defending against such

“occurrence”;

(d) Any seizure or destruction by order of public authority, except destruction

by order of public authority, to prevent the spread of, or to otherwise

contain, control or minimize loss, damage or destruction which occurs due

to a peril insured against under this policy;

(e) Any risks of contraband or illegal trade.

(4) Named Windstorm, as designated by the National Weather Service, including

Hurricane and/or Tropical Storm, in “Tier 1 and 2 counties”, as further defined in

this policy. This Named Windstorm exclusion in “Tier 1 and 2 counties” also

excludes loss or damage caused by water in any state, or rain, or sleet, or snow, or

hail, or sand, dust or any other substance, material or object that is carried, blown,

driven or otherwise transported by onto or into the property insured in “Tier 1 and 2

counties” as a result of the Named Windstorm.

(5) “Flood”, as defined herein or spray resulting from “Flood”, whether driven by wind

or not, mudslide or mud-flow; water on or below the surface of the ground including

that which exerts pressure on or flows, seeps or leaks through sidewalks, driveways,

foundations, walls, basements or other floors, or through doors, windows or other

openings in such sidewalks, driveways, foundations, walls or floors. However, this

exclusion shall not apply to loss or damage caused by ensuing fire, theft or

explosion not otherwise excluded by the policy.

(6) “Earth Movement” including loss or damage caused by, resulting from,

contributed to, or aggravated by any natural or manmade “earth movement”,

including but not limited to earthquake, landslide, mud flow, volcanic eruption,

earth sinking, subsidence, earth rising, or earth shifting; However this exclusion

shall not apply to loss or damage caused by ensuing fire, theft, sprinkler leakage

or explosion not otherwise excluded by the policy.

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b. This policy does not insure against loss or damage caused by the following:

(1) Faulty, inadequate or defective design, planning, development, surveying, siting,

specifications; faulty materials, faulty workmanship or maintenance; unless an

insured loss ensues during the policy period as set forth in the Declarations page and

then this policy shall cover for such ensuing loss or damage;

(2) Electrical injury or disturbance to electrical appliances, devices, or wiring caused by

electrical currents artificially generated; unless fire or explosion ensues and then this

policy shall only cover for such ensuing loss or damage occurring during the policy

period as set forth in the Declarations page;

(3) Mechanical breakdown occurring during the policy period as set forth in the

Declarations page;

(4) Explosion, rupture, or bursting of steam boilers, steam pipes, steam turbines, or

steam engines owned or operated by the Named Insured; unless an insured loss

ensues during the policy period as set forth in the Declarations page and then this

policy shall only cover for such ensuing loss of damage. The Company will also pay

for loss or damage during the policy period as set forth in the Declarations page

caused by or resulting from the explosion of gases or fuel within the furnace of any

fired vessel or within the flues or passages through which the gases of combustion

pass;

(5) Loss or damage caused by or resulting from vermin, bats, insects (including but not

limited to termites and bed bugs), inherent vice, latent defect, contamination, rust,

dampness or dryness of the atmosphere, smog, extremes of temperature, wear and

tear, cumulative effects of smoke, vapor, liquid, dust or gradual deterioration; unless

an insured loss ensues during the policy period as set forth in the Declarations page

and then this policy shall only cover for such ensuing loss or damage;

(6) Settling or shrinkage of walls, floors or ceilings; unless an insured loss ensues during

the policy period as set forth in the Declarations page and then this policy shall only

cover for such ensuing loss or damage;

(7) Loss of market; damage or deterioration occurring during the policy period as set

forth in the Declarations page arising from any delay;

(8) Unexplained loss, mysterious disappearance, or loss or shortage disclosed on taking

inventory, voluntary parting with title or possession of property; misappropriation;

conversion occurring during the policy period as set forth in the Declarations page;

(9) Rain, snow, ice or sleet occurring during the policy period as set forth in the

Declarations page to personal property in the open;

(10) Continuous or repeated seepage or leakage of water, or the presence or

condensation of humidity, moisture or vapor, that occurs over a period of 14 days

or more;

(11) Water, other liquids, powder or molten material that leaks or flows from

plumbing, heating, air conditioning or other equipment (except fire protective

systems) caused by or resulting from freezing, unless:

(a) A diligent effort is made to regularly maintain heat in the “building” or

structure; or,

(b) The equipment is drained and the supply shut off;

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(12) Terrorism, including action taken to prevent, defend against, respond to or retaliate

against terrorism or suspected terrorism. Terrorism is defined as any act, involving

the use or threat of force, violence, dangerous conduct, interference with the

operations of any business, government or other institution, or any similar act, when

the effect or apparent purpose is: to influence or instill fear in any government (de

jure or de facto) or the public, or any segment of either; or to further or to express

support for, or opposition to, any political, religious, social, ideological or similar

type of objective or position;.

(13) Loss or damage caused by or resulting from human and/or animal remains at, in or

surrounding the insured location as identified in the Declarations Page by its

“Property Identification Number”. Any such loss or damage resulting from

human and/or animal remains are specifically excluded from any Pollution

Cleanup or Debris Removal limits. Such loss or damage is wholly excluded even

if the human and/or animal remains are the result of a covered loss.

Nevertheless, if fire is not excluded by this policy and a fire arises directly or indirectly

from human or animal remains, any loss or damage insured under this policy arising

directly from that fire is insured, subject to the provisions of this policy.

c. This policy does not cover loss or damage caused by, resulting from, contributed to or made

worse by actual, alleged or threatened release, discharge, escape or dispersal, seepage or

migration of “contaminants or pollutants” all whether direct or indirect, proximate or remote

or in whole or in part caused by, contributed to or aggravated by any physical damage insured

by this policy.

Nevertheless, if fire is not excluded by this policy and a fire arises directly or indirectly from

seepage or contamination or pollution, any loss or damage insured under this policy arising

directly from that fire is insured, subject to the provisions of this policy.

This exclusion will not apply when loss or damage is caused directly by the following

specified causes of loss: fire, lightning, aircraft impact, explosion, riot, civil commotion,

smoke, vehicle impact, windstorm, hail, vandalism or malicious mischief. This exclusion

shall also not apply when loss or damage is caused directly by leakage or accidental discharge

from automatic fire protective systems.

d. This policy does not cover:

(1) Asbestos, dioxin or polychlorinated biphenyl (hereinafter referred to as “Materials”)

removal from any good, product or structure unless the asbestos is itself damaged by

fire, lightning, aircraft impact, explosion, riot, civil commotion, smoke, vehicle

impact, windstorm or hail, vandalism, malicious mischief, leakage or accidental

discharge from automatic fire protective systems;

(2) Demolition or increased cost of reconstruction, repair, debris removal or loss of use

necessitated by the enforcement of any law or ordinance regulating such Materials;

(3) Any governmental direction or request declaring that such Materials present in or

part of or utilized on any undamaged portion of the Named Insured’s property can no

longer be used for the purpose for which it was intended or installed and must be

removed or modified.

The exception to exclusion 7 d. (1) above does not apply to payment for the investigation or

defense of any loss, damage or any undamaged portion of the Named Insured’s property that

can no longer be used for the purpose for which it was intended.

 e. The Company will not pay the expense to:

(1) Extract “contaminants or pollutants” from debris; or

(2) Extract “contaminants or pollutants” from land or water; or

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(3) Remove, restore or replace contaminated or polluted land or water; or

(4) Remove or transport any property or debris to a site for storage or decontamination

required because the property or debris is affected by pollutants or contaminants,

whether or not such removal, transport, or decontamination is required by law or

regulation.

It is a condition precedent to recovery under this extension that the Company shall have paid

or agreed to pay for direct physical loss or damage to the property insured hereunder and that

the Named Insured shall give written notice to the Company of its intent to claim for the cost

of removal of debris or cost of clean-up not later than twelve months after the date of such loss

or damage.

f. Notwithstanding any of the provisions of this policy, the Company shall not be liable for loss,

damage, costs, expenses, fines or penalties incurred or sustained by or imposed on the Named

Insured at the order of any government agency, court or other authority arising from any cause

whatsoever.

 g. This policy does not cover unless otherwise provided in Clause 12:

(1) Loss or damage caused directly or indirectly by mold or other fungi, wet or dry

rot, or bacteria;

(2) The costs associated with the enforcement of any ordinance or law which requires

the Named Insured or others to test for, monitor, clean up, remove, contain, treat,

detoxify or neutralize, or in any way respond to or assess the effects of mold or

other fungi, wet or dry rot, or bacteria;

(3) Any costs, expenses, fines or penalties incurred or sustained by or imposed on the

Named Insured at the order of any government agency, court or other authority

arising from any cause whatsoever.

This mold or other fungi, wet or dry rot, or bacteria exclusion applies whether or not the

loss event results in widespread damage or affects a substantial area.

h. Limitations

This policy does not insure loss or damage to:

(1) The interior of any “building” or structure caused by or resulting from rain, snow,

sleet, ice, sand or dust, whether driven by wind or not, unless:

(a) The “building” or structure first sustains damage by a peril insured

against to its roof or walls through which the rain, snow, sleet, ice, sand

or dust enters; or

(b) The loss or damage is caused by or results from thawing of snow, sleet or

ice on the “building” or structure.

8. PROPERTY EXCLUDED

This policy does not cover loss or damage to:

a. Money and securities.

The term "securities" shall mean all negotiable and non-negotiable instruments or contracts

representing either money or other property, and includes revenue and other stamps in current

use, tokens, and tickets but does not include money;

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b. Land, land values or water;

However, this exclusion shall not apply to the cost of restoring or repairing landscaping as

provided under the applicable sublimit in clause 2. b. of this policy;

c. Growing crops, standing timber, and animals, birds or fish;furs, jewelry, or precious stones or

metals;

This exclusion does not apply to ornamental trees and shrubs, located on the Named Insured's

premises subject to applicable sublimit in clause 2.b. of this policy;

d. Watercraft, aircraft, railroad rolling stock, spacecraft or motor vehicles licensed for highway

use;

e. Underground mines and mining property located below the surface of the ground;

f. Real or Personal Property owned by others unless in the care, custody, or control of the

Named Insured.

g. Bridges or tunnels used for vehicular traffic, reservoirs, dikes, canals and dams;h. Docks,

piers and wharves which are not a structural part of a “building”;

i. Oil or gas wells, platforms, rigs, or structures;

j. Intangible property, including without limitation, goodwill and intellectual property of any

kind;

k. (1) Fixtures, appliances, cabinets, countertops, floor coverings, ceiling coverings, wall

coverings, installations, alterations and additions that comprise part of a “building”,

when situated within portions of the premises used exclusively by individual

condominium unit owners. However, if the insured condominium association’s

Conditions, Covenants and Restrictions require that the insured condominium

association insure said property, then said property will be insured under this policy

for the interest of the Named Insured condominium association, but only for the

original value and quality that existed at the formation of the condominium

association except as otherwise stated in the Declarations Page; and

(2) Personal property owned by individual condominium unit owners.

9. VALUATION

At the time of loss, the basis of adjustment unless otherwise endorsed herein shall be as follows:

a. Real and personal property not otherwise valued below, shall be valued at the cost of repairing

or replacing (whichever is the lesser amount), at the time of loss without deduction for

depreciation, with another building or personal property of comparable material and quality

for the same use or occupancy.

b. The following property, unless otherwise endorsed herein shall be valued at the time of loss as

follows:

(1) Property of others – the amount for which the Insured is legally liable, but not

exceeding replacement cost;

(2) Unrepairable electrical and mechanical equipment, including “electronic data

processing equipment”, the cost to replace with equipment that is functionally

equivalent to that damaged;

(3) Trees, shrubs, plants and lawns will be limited to standard local nursery stock;

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(4) “Fine Arts” shall be valued at the lesser of:

(a) The cost to repair or restore the article to the condition that existed

immediately prior to the loss;

(b) The cost to replace the article; or,

(c) The value designated for the article on the schedule of “Fine Arts” on file

with the Company;

(5) Valuable Papers and Records will be valued at the cost to replace or restore the lost

information on valuable papers and records for which duplicates do not exist. The

Company will also pay for the cost of blank material for reproducing records

(whether or not duplicates exist), and (when there is a duplicate) for the cost of labor

to transcribe or copy the records.

(6) With respect to “buildings” which are declared by a local state or federal authority to

be of historical significance or of historical value, such rebuilding, repairing or

replacement shall be with material, workmanship, processes, technologies and

designs publicly available within the current marketplace and shall not include the

cost of creating outdated, archaic or antiquated materials, workmanship, processes,

technologies or designs;

(7) Tenant’s Improvements and Betterments:

(a) If repaired or replaced at the expense of the Named Insured within a

reasonable time after loss, the replacement cost of the damaged or

destroyed improvements and betterments;

(b) If not repaired or replaced at the expense of the Named Insured within a

reasonable time after loss, the proportion of the original cost at the time of

installation of the damaged or destroyed property which the unexpired term

of the lease or rental agreement in effect at the time of loss bears to the

period from the dates such improvements or betterments were made to the

expiration date of the lease; or,

(c) If repaired or replaced or to be repaired or replaced at the expense of others

for the use of the Named Insured, there shall be no liability hereunder.

c. The Named Insured may:

(1) Voluntarily elect to rebuild at another site provided that such rebuilding does not

increase the amount of loss or damage which would otherwise be payable to rebuild

at the present site;

(2) Submit a claim based on the “Actual Cash Value” of the property lost or damaged

until the actual repair, purchase or replacement has been completed. The Named

Insured may still claim the additional coverage which replacement cost provides if

notification of intention to do so is received by the Company within 180 days after

the loss or damage.

d. Replacement cost is subject to all the terms, conditions and limitations of the policy (including

any endorsements) and the following additional provisions:

(1) The Named Insured must execute repairs or replacement with due diligence

and dispatch;

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(2) The Company will not pay on a replacement cost basis until the lost or damaged

property is actually repaired or replaced.

(3) The Company will not pay more on a replacement cost basis than the least of

(a) The cost to replace, on the same site, the loss to damaged property with

other property of comparable material and quality which is used for the

same purpose; or

(b) The Amount actually spent by the Named Insured that is necessary to

repair or replace the lost or damaged property.

e. The Company will only pay the Named Insured based on a “financial interest” or contractual

liability in the insured property at the time of loss.

f. If the Named Insured fails to comply with any of the valuation provisions or does not repair or

replace the property within two (2) years from the date of loss, the basis of the valuation will

revert to the “Actual Cash Value”. “Actual Cash Value” is defined as the replacement cost of

the property at the time and place of the loss or damage with proper deduction for

depreciation.

10. FIRE BRIGADE CHARGES AND EXTINGUISHING EXPENSES

This policy is extended to cover expenses incurred by the Named Insured to replace fire

extinguishing materials that are lost, expended or destroyed to the extent of the value of such fire

extinguishing materials; and for firefighting expenses incurred by or imposed on the Named Insured

in connection with covered loss or damage to covered property. However, there will be no coverage

for charges incurred for false alarm.

The limit of liability will not exceed the applicable limit of insurance shown in the sublimits of Clause

2.b.

11. POLLUTION CLEANUP AND REMOVAL COSTS

Notwithstanding the provisions of Clause 7.c. or any provision respecting seepage and/or pollution

and/or contamination, and/or debris removal and/or cost of cleanup, in the event of direct physical loss

or damage to the property insured hereunder that is directly caused by or results from one or more of

the following causes that occurs during the policy period as set forth in the Declarations page:

Fire;

Lightning;

Explosion;

Windstorm;

Hail;

Smoke;

Vehicles;

Aircraft;

Civil disturbance;

Riot;

Sprinkler Leakage;

Leakage from fire extinguishing equipment;

Weight of snow, ice or sleet;

“Water Damage” except as otherwise excluded in this Policy.

This policy (subject otherwise to its terms, conditions and limitations, including but not limited to any

applicable deductible) also insures:

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a. expenses reasonably incurred in removal of debris of the property insured hereunder

destroyed or damaged from the location of the loss; and/or,

b. cost of cleanup, at the location of the loss, made necessary as a result of such direct physical

loss or damage; and/or,

c. cost of pollution cleanup;

not to exceed the policy sub-limit specified in Clause 2.b.

It is a condition precedent to recovery that the Company shall have paid or agreed to pay for direct

physical loss or damage to the property insured hereunder unless such payment is precluded solely by

the operation of any deductible and that the Named Insured shall give notice to the Company of intent to

claim for cost of removal of debris or cost of cleanup NO LATER THAN 12 MONTHS AFTER

THE DATE OF SUCH PHYSICAL LOSS OR DAMAGE.

12. LIMITED COVERAGE FOR “MOLD”, “FUNGI”, WET OR DRY ROT OR “BACTERIA”

This policy is extended to cover, subject to a maximum limit of $10,000 per “occurrence” per

insured location, “loss or damage” directly caused by or resulting from “mold” or “fungi”, wet or

dry rot, or “bacteria” if such “mold” or “fungi”, wet or dry rot, or “bacteria” is directly caused by or

results from one or more of the following causes that occurs during the policy period:

Fire;

Lightning;

Explosion;

Windstorm;

Hail;

Smoke;

Vehicles;

Aircraft;

Civil disturbance;

Riot;

Sprinkler Leakage;

Leakage from fire extinguishing equipment;

Weight of snow, ice or sleet;

“Water Damage” except as otherwise excluded in this Policy.

The maximum total limit provided by this coverage extension is $10,000 per “occurrence” per

location regardless of the number or type of coverages that may apply, the number of locations to

which this coverage extension applies, or regardless of the number or type of mold or other fungi,

wet or dry rot, or bacteria that caused the loss or damage. When this agreement and any other

insuring agreement or endorsement written by the Company applies to the same mold or other fungi,

wet or dry rot, or bacteria loss, $10,000 per “occurrence” per location is the most the Company will

ever pay on a combined total basis for all such loss, irrespective of any limit that might apply to the

underlying cause of the mold or other fungi, wet or dry rot or bacteria loss, if any. This amount is

not in addition to the limits of coverage for real or personal property or time element coverage as

specified elsewhere in this policy and is inclusive of all testing, analysis, remediation and

reconstruction.

Definitions applicable to this section

“Mold” or “fungi” means:

any type or form of mold or mildew; any other type or form of fungus; or any mycotoxin, spore,

scent or byproduct that is produced or released by such mold, mildew, or other fungus.

“Bacteria” means:

any type or form of bacterium; or any by-product that is produced or released by such bacterium.

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“Loss or damage” means:

Direct physical loss or damages to covered property by “mold”, “fungus”, wet or dry rot or

“bacteria”, including the cost of removal of the “mold”, “fungus”, wet or dry rot or “bacteria”;

The cost to tear out and replace any part of the “building” or other property as needed to gain access

to the “mold”, “fungus”, wet or dry rot or “bacteria”; and

The cost of testing performed after removal, repair, replacement or restoration of the damaged

property is completed, provided there is reason to believe that “mold”, “fungus”, wet or dry rot or

“bacteria” are present.

13. DEBRIS REMOVAL COSTS

a. The Company will pay the reasonable and necessary expense incurred by the Named Insured

to remove debris of insured property from a location remaining as the direct result of loss or

damage insured by this policy during the policy period. Such expenses will be paid only if

reported to the Company in writing within 180 days of the date of direct physical loss or

damage.

b. For this Debris Removal coverage, the Company will pay 25% of:

(1) The amount the Company pays for the direct physical loss or damage to the insured

property; plus

(2) The deductible in this policy applicable to that direct physical loss or damage.

c. In no event will this Debris Removal Coverage apply to:

(1) Costs to extract “contaminants or pollutants” from land or water; or

(2) Costs to remove, restore or replace polluted land or water.

The limit of liability will not exceed the applicable limit of insurance shown in the sublimits of Clause

2.b.

14. BUILDING ORDINANCE, DEMOLITION AND INCREASED COST OF CONSTRUCTION

a. In the event of loss or damage under this policy that causes the enforcement of any law or

ordinance regulating the construction, repair, or use of property the Company shall be liable

for:

Coverage A. The proportion that the value of the undamaged part of the property bore to

the value of the entire property prior to loss;

Coverage B. The cost of demolishing the undamaged property;

Coverage C. The increased cost of repair or reconstruction of the damaged and

undamaged property on the same or another site and limited to the costs

that would have been incurred in order to comply with the minimum

requirements of such law or ordinance regulating the repair or

reconstruction of the damaged property on the same site. However, the

Company shall not be liable for any increased cost of construction loss

unless the damaged property is actually rebuilt or replaced; if the property

is repaired or rebuilt it must be intended for similar occupancy as the

current property, unless otherwise required by zoning or land use ordinance

of law;

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Coverage D. Any increase in the business interruption, Extra Expense, rental value and

royalties loss arising out of the additional time required to comply with said

law or ordinance.

b. Additional Conditions which apply to this extension:

If the property is repaired or replaced, on the same or another premises, this policy will not pay

more for loss or damage, including loss caused by enforcement of any law or ordinance, than

the least of the following amounts:

(1) The amount actually spent to repair, rebuild, or reconstruct the “building”, but not for

more than the amount it would cost to restore the “building” on the same premises

and to the same height, floor area, style and comparable quality of the original

property insured, assuming that such repairing, rebuilding or reconstructing is then

permitted; or

(2) The Limit of Liability contained within this policy; or

(3) If a portion of the property is not repaired or replaced, due to ordinance or law

restricting or prohibiting repair or replacement of the “building” to the same height,

floor area of the original property insured, the amount actually spent to repair,

rebuild, or reconstruct the “building” and the “Actual Cash Value”, of the portion of

the property that is not repaired or replaced.

The limit of liability will not exceed the applicable limit of insurance shown in the sublimits of

Clause 2.b.

15. EXPEDITING EXPENSE

This policy covers the reasonable extra cost of temporary repair and of expediting the repair of damaged

property insured hereunder, including overtime and express freight or other rapid means of

transportation.

16. CONTRIBUTING INSURANCE

This insurance shall be excess of any other contributing insurance.

17. EXCESS INSURANCE

Excess insurance is insurance over the limit of liability set forth in this policy. The existence of such

excess insurance shall not prejudice the coverage provided under this policy nor will it reduce any

liability hereunder.

18. UNDERLYING INSURANCE

Underlying insurance is insurance excess of all, or any part of, the deductible and against all or any of

the perils covered by this policy including declarations of value to the carrier for hire. The existence of

such underlying insurance shall not prejudice or affect any recovery otherwise payable under this

policy.

If the limits of such underlying insurance exceed the deductible amount which would apply in the event

of loss under this policy, then that portion which exceeds such a deductible amount shall be considered

"other insurance."

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19. OTHER INSURANCE

Except for insurance described by the excess insurance clause, by the underlying insurance clause, this

policy shall not cover to the extent of any other insurance, whether prior or subsequent hereto in date,

and whether directly or indirectly covering the same property against the same perils. The Company

shall be liable for loss or damage only to extent of that amount in excess of the amount recoverable from

such other insurance.

20. SUBROGATION

Any release from liability entered into by the Named Insured prior to loss hereunder shall not affect this

policy nor the right of the Named Insured to recover hereunder. The right of subrogation against the

Named Insured, and/or its affiliated, subsidiary, and associated companies or corporations, or any other

corporation or companies associated with the Named Insured through ownership or management, is

waived.

In the event of any payment under this policy, the Company shall be subrogated to the extent of such

payment to all the Named Insured's rights of recovery therefor. The Named Insured shall execute all

papers required and shall do anything that may be necessary at the expense of the Company to secure

such right. The Company will act in concert with all other interests concerned, i.e., the Named Insured

and any other company(ies) participating in the payment of any loss as primary or excess insurers, in the

exercise of such rights of recovery. If any amount is recovered as a result of such proceedings, the net

amount recovered after deducting the costs of recovery shall be divided between the interests concerned

as if the amount of recovery has been known prior to the loss. If there should not be recovery, the

expense of proceedings shall be borne proportionately by the interests instituting the proceedings.

21. SALVAGE AND RECOVERIES

When, in connection with any loss hereunder, any salvage or recovery is received subsequent to the

payment of such loss, the loss shall be figured on the basis on which it would have been settled had the

amount of salvage or recovery been known at the time the loss was originally determined. Any amounts

thus found to be due either party from the other shall be paid promptly.

The expense of all proceedings necessary to such recoveries shall be apportioned between the interests

concerned in the ratio of their respective recoveries as finally settled. If there should be no recovery and

proceedings are conducted solely by the Company, the expense thereof shall be borne by the Company.

22. BRAND OR TRADEMARK

In case of damage by a peril insured against to covered property bearing a brand or trademark or which

in any way carries or implies the guarantee or the responsibility of the manufacturer or Named Insured,

the salvage value of such damaged property shall be determined after removal at the Company's

expense in the customary manner of all such brands or trademarks or other identifying characteristics.

The Named Insured shall have full right to the possession of all goods involved in any loss under this

policy and shall retain control of all damaged goods. The Insured, exercising a reasonable discretion,

shall be the sole judge as to whether the goods involved in any loss under this policy are fit for

consumption. No goods so deemed by the Insured to be unfit for consumption shall be sold or otherwise

disposed of except by the Named Insured or with the Named Insured ’s consent, but the Named Insured

shall allow the Company any salvage obtained by the Named Insured on any sale or other disposition

of such goods.

23. MACHINERY

In case of loss or damage by a peril insured against to any part of a machine or unit consisting of two or

more parts when complete for use, the liability of the Company shall be limited to the value of the part

or parts lost or damaged, or at the Insured's option to the cost and expense of replacing or duplicating the

lost or damaged part or parts or of repairing the machine or unit.

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24. PARTIAL PAYMENT OF LOSS

In the event of a loss covered by this policy, it is understood and agreed that the Company may allow a

partial payment(s) of claim subject to the policy provisions and normal Company adjustment process.

25. PROFESSIONAL FEES

a. This policy is extended to cover reasonable claims administration and loss data preparation fees

and expenses to:

Auditors,

Accountants,

Architects,

Engineers,

Construction consultants,

for producing and certifying particulars or details of the Named Insured’s business in order to

determine the amount of loss. Expenses must be incurred by the Named Insured in order to

establish the amount of the loss.

b. The Company will not be liable for fees or expenses to: attorneys; public adjusters; appraisers or

the Named Insured’s own employees or agents.

c. The limit of liability will not exceed the applicable limit of insurance shown in the sublimits of

Clause 2.b.

26. APPRAISAL

If the Named Insured and the Company fail to agree on the amount of loss, each, upon the written

demand either of the Named Insured or of the Company made within 60 days after receipt of proof of

loss by the Company, shall select a competent and disinterested appraiser. The appraisers shall then

select a competent and disinterested umpire. If they should fail for 15 days to agree upon such umpire,

then upon the request of the Named Insured or of the Company, such umpire shall be selected by a

judge of a court of record in the county and state in which such appraisal is pending. Then, at a

reasonable time and place, the appraisers shall appraise the loss, stating separately the value at the time

of loss and the amount of loss. If the appraisers fail to agree, they shall submit their differences to the

umpire. An award in writing by any two shall determine the amount of loss. The Named Insured and

the Company shall each pay his or its chosen appraiser and shall bear equally the other expenses of the

appraisal and of the umpire.

If there is an appraisal, the Company will still retain its right to deny the claim.

27. PAIR AND SET

Except as provided under Clause 23, in the event of loss or damage by a peril insured against to any

article or articles which are part of a pair or set, the measure of loss or damage to such article or articles

shall be, at the Insured's option:

a. The reasonable and fair proportion of the total value of the pair or set, giving consideration to

the importance of said article or articles, but in no event shall such loss or damage be

construed to mean total loss of the pair or set; or

b. The full value of the pair or set provided that the Insured surrenders the remaining article or

articles of the pair or set to the Company.

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28. ASSISTANCE AND COOPERATION OF THE NAMED INSURED

The Named Insured shall cooperate with the Company and, upon the Company's request and expense,

shall attend hearings and trials and shall assist in effecting settlement, in securing and giving evidence,

in obtaining the attendance of witnesses, and in conducting suits.

29. PRESERVATION OF PROPERTY

In case of actual or imminent physical loss or damage of the type insured against by this Policy, the

expenses incurred by the Named Insured in taking reasonable and necessary actions for the temporary

protection and preservation of property insured hereunder shall be added to the total physical loss or

damage otherwise recoverable under this Policy and be subject to the applicable deductible and without

increase in the limits of liability contained in this Policy.

30. MORTGAGE CLAUSE

Loss, if any, under this policy, shall be payable to the mortgagee(s) (or Trustee) of a Named Insured as

may be named in the Declarations Page as issued to a Named Insured as interest may appear under all

present or future mortgages upon the property herein described in which the aforesaid may have an

interest as mortgagee (or trustee), in order of precedence of said mortgages, and this insurance, as to the

interest of the mortgagee (or trustee) only therein, shall not be invalidated by any act or neglect of the

mortgagor or owner of the within described property, nor by any foreclosure or other proceedings or

notice of sale relating to the property not by any change in the title or ownership of the property, not by

the occupation of the premises for purposes more hazardous than are permitted by this policy; provided,

that in case the mortgagor or owner shall neglect to pay any premium due under this policy, the

mortgagee (or trustee) shall, on demand, pay the same.

Provided, also, that the mortgagee (or trustee) shall notify the Company of any change of ownership or

occupancy or increase of hazard which shall come to the knowledge or said mortgagee (or trustee) and,

unless permitted by this policy, it shall be noted thereon and the mortgagee (or trustee) shall, on

demand, pay the premium for such increased hazard for the term of the use thereof; otherwise this

policy shall be null and void.

The Company reserves the right to cancel this policy at any time as provided by its terms, but in such

case this policy shall continue in force for the benefit only of the mortgagee (or trustee) for –thirty days

after notice to the mortgagee (or trustee) of such cancellation and shall then cease, and the Company

shall have the right, on like notice, to cancel this agreement.

Whenever the Company shall pay the mortgagee (or trustee) any sum for loss under this policy and

shall claim that, as to the mortgagor or owner, no liability therefore existed, the Company shall, to the

extent of such payment, be thereupon legally subrogated to all the rights of the party to whom such

payments shall be made, under all securities held as collateral to the mortgage debt, or may, at its

option, pay the mortgagee (or trustee) the whole principal due or to grow due on the mortgage with

interest, and shall thereupon receive a full assignment and transfer of the mortgage and of all such other

securities; but no subrogation shall impair the right of the mortgagee (or trustee) to recover the full

amount of said mortgagee's (or trustee's) claim.

31. PAYMENT OF LOSS

All adjusted claims shall be due and payable not later than 30 days after presentation and acceptance of

proofs of loss by the Company or its appointed representative.

32. EVIDENCES OR CERTIFICATES OF INSURANCE

Any Evidence of Commercial Property Insurance issued by CIBA Insurance Services on behalf of the

Company in connection with this policy shall be issued solely as a matter of convenience or information

for the addressee(s) or holder(s) of said Evidence of Commercial Property Insurance, except where any

Additional Insured(s) or Loss Payee(s) are named pursuant to the Special Provisions of said Evidence

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of Commercial Property Insurance. In the event any Additional Insured(s) or Loss Payee(s) are so

named, this policy shall be deemed to have been endorsed accordingly, subject to all other terms,

conditions and exclusions stated herein.

33. CANCELLATION

a. Individual Named Insured locations covered under this policy may be cancelled at any time at

the request of CIBA Insurance Services by mailing to the Named Insured at the address shown

in the Declarations page issued for the Named Insured location as identified by its “Property

Identification Number” written notice stating not less than thirty (30) days thereafter such

cancellation shall be effective. In the event of non-payment of premium, the number of days

is amended to read ten (10) days.

b. The mailing of notice as aforesaid shall be sufficient proof of notice and the effective date and

hour of cancellation stated in the notice shall become the end of the policy period. Delivery of

such written notice either by CIBA Insurance Services or by the Company shall be equivalent

to mailing.

c. If the cancellation is requested by CIBA Insurance Services, or if the insured property is sold

by the Named Insured, the return premium will be calculated pro rata meaning the unearned

premium will be returned.

d. If the cancellation is requested by the Named Insured for any other reason than the insured

property being sold, then the premium will be calculated short rate, meaning that 90% of the

unearned premium will be returned.

34. JOINT LOSS AGREEMENT

It is agreed that in the event the Named Insured suffers a loss at a location designated in both a Boiler

and Machinery policy and this Policy, and there is disagreement between the Boiler and Machinery

Insurer and the Company hereunder with respect to:

a. Whether the loss was caused by an accident insured against by the Boiler and Machinery

policy or by a peril insured against by this Policy,

or

b. The extent of participation of the Boiler and Machinery policy and this Policy in a loss which

may be insured against, partially or wholly, by either or both of said policies, then after

agreement between the Named Insured , the Boiler Insurer, and the Company hereunder as to

the total amount of the loss recoverable under the policies, each insurer will, upon written

request of the Named Insured pay to the Named Insured one-half (1/2) of the amount of loss

which is in disagreement but no more than the Company would have paid had there been no

Boiler and Machinery policy in effect at the time of the “occurrence”.

The payment by the Company hereunder and acceptance of the same by the Named Insured signify the

agreement of the Company to submit to and proceed with arbitration within ninety (90) days of such

payments. The Arbitrators will be three in number, one of whom shall be appointed by the Company

hereunder, and the third appointed by consent of the other two. The decision by the arbitrators shall be

binding on the insurer.

The Named Insured agrees to cooperate in furnishing information and technical data as may be required

by the Company in connection with such arbitration or any other method of apportionment upon which

they may decide, but not to intervene Neither this agreement nor the payment or acceptance of any

amounts hereunder shall operate to modify or waive the terms and conditions of the Boiler and

Machinery policy or this Policy, or affect in any way the rights of the parties there under.

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This agreement shall become effective at Inception and shall continue in force until canceled by either

insurer on 90 days written notice to the Insured or until the termination of one or all of the policies

specified herein, whichever occurs first

The provisions of this Agreement shall not apply unless such other policy issued by the Boiler and

Machinery Insurers is similarly endorsed.

35. PRIORITY OF PAYMENTS CLAUSE

In the event of a claim under this policy, and any underlying policy(ies), which involves more than one

interest and/or coverage and/or peril, it shall be at the sole option of the Named Insured to apportion

recovery under this policy when submitting final proof of loss. Subject to the overall amount of claims

not exceeding the overall limit of liability contained herein for any one loss.

36. ASSIGNMENT

Assignment or transfer of this policy shall not be valid except with the written consent of the Company.

37. SUIT AGAINST COMPANY

No suit, action or proceeding for the recovery of any claim under this policy shall be sustainable in any

court of law or equity unless the Named Insured shall have fully complied with all the requirements of

this policy, nor unless the same be commenced within twelve (12) months next after inception of the

loss provided, however, that if under the laws of the jurisdiction in which the property is located such

limitation is invalid, then any such claims shall be void unless such action, suit or proceedings be

commenced within the shortest limit of time permitted by the laws of such jurisdiction.

38. “VACANT” AND UNOCCUPIED “BUILDINGS”

If the “building” where the loss occurs has been “vacant” for more than 90 consecutive days before the

loss or damage occurs, the Company will not pay for loss or damage caused by any of the following:

a. Water damage from any cause;

b. Vandalism;

c. “Building” Glass Breakage;

d. Theft; or

e. Attempted Theft.

39. CONCEALMENT, MISREPRESENTATION OR FRAUD

This policy is void in any case of fraud by the Named Insured as it related to this policy at any time. It is

also void if the Named Insured or any other insured, at any time, intentionally conceals or misrepresents

a material fact concerning:

a. This policy;

b. Property insured under this policy;

c. The Named Insured or any other insured’s interest in the property insured under this policy; or

d. A claim made under this policy.

40. DUTIES OF THE NAMED INSURED IN THE EVENT OF LOSS OR DAMAGE

It is a condition precedent to any payment of loss that the Named Insured must see that the following are

done in the event of loss or damage to insured property as soon as possible:

a. Notify the police if a law may have been broken.

b. Give the Company immediate notice of loss or damage including a description of the property

involved.

c. Give the Company a description of how, when and where the loss or damage occurred.

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d. Take all reasonable steps to protect insured property from further damage by a peril insured

against. If feasible, set the damaged property aside and in the best possible order for

examination. Also, the Named Insured shall keep a record of expenses for emergency and

temporary repair, for consideration in the settlement of the claim. Any record of expenses will

not increase the applicable limit of insurance.

e. At the Company’s request, give the Company complete inventories of the damaged and

undamaged property. Include quantities, costs, values and amount of loss claimed.

f. Permit the Company to inspect the property and records proving the loss or damage. Also

permit the Company to take samples of damaged property for inspection, testing and analysis.

g. Cooperate with the Company and its retained adjustors and experts in the investigation of the

claim by providing requested documents and information as soon as possible.

h. If requested, both the Named Insured and any of its employees submit under oath, to

questioning, at such times as may be reasonably required about any matter relating to this

insurance or the Named Insured’s claim, including the Named Insured’s books and records.

In such event, the Named Insured’s and employees’ answers must be signed.

i. Send the Company a signed, sworn statement of loss containing the information requested by

the Company to investigate the claim. The Named Insured must do this within 60 days of the

Company’s request. The Company will supply the Named Insured with the necessary forms.

41. CONFORMITY TO STATUTE

Terms of this policy in conflict with the written laws of the state in which the policy is issued are

changed to conform to such laws.

42. TITLES OF PARAGRAPHS

The titles of the paragraphs of this form and of endorsements, if any, now or hereafter attached hereto

are inserted solely for the convenience of reference and shall not be deemed in any way to limit or affect

provisions to which they are related.

43. DEFINITIONS

The following terms, whenever used in this policy, are defined as follows:

a. “Account Identification Number” (AIN)

The contract number assigned to an individual Insured Member covering their schedule of

locations insured hereunder. The AIN is issued by CIBA under the authority of the various

Insurers, as listed in Appendix BP, and is subject to all terms and conditions of such

Insurers’ policies, to the extent specifically stated for the individual contract number issued

to the Insured Member.

b. “Actual Cash Value”

The cost to repair or replace the damaged property, minus depreciation of materials and

applicable labor.

c. “Building”or “Buildings”

Any building at the “described premises”.

d. “Contaminants or Pollutants”

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Any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot,

fumes, acids, alkalis, chemicals and waste, which after its release can cause or threaten

damage to human health or human welfare or causes or threatens damage, deterioration,

loss of value, marketability or loss of use to property insured hereunder, including but not

limited to bacteria, virus, or hazardous substances as listed in the Federal Water, Pollution

Control Act, Clean Air Act, Resource Conservation and Recovery Act of 1976, and Toxic

Substances Control Act or as designated by the U. S. Environmental Protection Agency.

Waste includes materials to be recycled, reconditioned or reclaimed.

e. “Described Premises”

The Named Insured’s property location that is stated in the Declarations Page issued to the

Named Insured Member by CIBA Insurance Services.

f. “Earth Movement”

Movement of the earth, including loss or damage caused by, resulting from, contributed to,

or aggravated by any natural or manmade “earth movement”, including but not limited to

earthquake, landslide, mud flow, volcanic eruption, earth sinking, subsidence, earth rising,

or earth shifting.

g. “Electronic Data Processing Equipment ”

“Electronic Data Processing Equipment” shall include, but not be limited to, transferring

equipment, computer systems, telecommunications systems or electronic control

equipment and component parts.

h. “Electronic Data Processing Media”

All forms of data, converted data, electronically converted data and/or programs and/or

applications and/or instructions and/or media vehicles employed.

i. “Financial Interest”

As used herein is intended to include the following:

(1) The Named Insured’s equity in the insured location as identified by its “Property

Identification Number”;

(2) The value of the insured’s loan up to and including the policy limits; or,

(3) Registered legal ownership in the insured location.

j. “Fine Arts”

“Fine Arts” shall include, but not be limited to, bona fide works of art, works of rarity,

historical value or artistic merit, photograph, (positives and negatives) lithographs,

illustrations, galley proofs, original records, and similar properties.

k. “Fire Brigade Charges/Fire Extinguishing Expenses”

Firefighting and/or containment charges and/or fire department service charges and other

extinguishing expenses for which the Insured is assessed.

l. “Flood”

A general and temporary condition of partial or complete inundation of normally dry land

areas from:

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(1) The unusual and rapid accumulation or runoff of surface waters from any source;

(2) The overflow of inland or tidal waters; or

(3) Waves, tides or tidal waves.

m. “Occurrence”

The term “occurrence” shall mean any one loss, disaster, casualty, or series of losses,

disasters, or casualties, arising out of one event. When the term applies to loss or losses

from the perils of tornado, cyclone, hurricane, windstorm, hail, riot, riot attending a strike,

civil commotion, and vandalism one event shall be construed to be all losses arising during

a continuous period of 72 hours.

n. “Property Identification Number” (PID)

The term “Property Identification Number” or PID shall mean the individual number assigned

to the Named Insured’s property location that is stated in the Declarations Page issued to the

Named Insured by CIBA Insurance Services.

o. “Tier 1 and 2” Counties

The term “Tier 1 and 2” includes all counties and parishes in the states listed below where

the words “Entire State” appear under the name of the state and the named counties,

parishes and cities that are listed under other states:

Alabama

Baldwin Covington Geneva Monroe

Clarke Escambia Mobile Washington

Connecticut

Fairfield Litchfield New Haven Tolland

Hartford Middlesex New London Windham

Delaware

Kent New Castle Sussex

Florida

Entire State

Georgia

Brantley Camden Effingham Liberty Tattnall

Bryan Charlton Evans Long Wayne

Bulloch Chatham Glynn McIntosh

Hawaii

Entire State

Louisiana

Acadia Jefferson Davis Plaquemines St. John the Baptist Tangipahoa

Assumption Jefferson St. Bernard St. Martin Terrebone

Calcasieu Lafayette St. Charles St. Mary Vermilion

Cameron Lafourche St. James St. Tammany Washington

Iberia Orleans

Maine

Androscoggin Kennebec Oxford Sagadahoc Washington

Cumberland Knox Penobscot Waldo York

Hancock Lincoln

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Maryland

Anne Arundel Caroline Dorchester Prince George’s Talbot

Baltimore Carroll Harford Queen Anne’s Wicomico

Baltimore City Cecil Howard Somerset Worcester

Calvert Charles Kent St. Mary’s

Massachusetts

Barnstable Dukes Middlesex Norfolk Suffolk

Bristol Essex Nantucket Plymouth Worcester

Mississippi

George Harrison Jackson Perl River Stone

Hancock

New Hampshire

Belknap Hillsboro Merrimack Rockingham Strafford

Carrol

New Jersey

Atlantic Cape May Hudson Monmouth Salem

Bergen Cumberland Mercer Ocean Somerset

Burlington Essex Middlesex Passaic Union

Camden Gloucester

New York

Bronx Nassau Putnam Richmond Suffolk

Kings New York Queens Rockland Westchester

North Carolina

Beaufort Chowan Gates Martin Pender

Bertie Columbus Halifax New Hanover Perquimans

Bladen Craven Hertford Northampton Pitt

Brunswick Currituck Hyde Onslow Sampson

Camden Dare Jones Pamlico Tyrrell

Carteret Duplin Lenoir Pasquotank Washington

Pennsylvania

Bucks Delaware Lancaster Philadelphia York

Chester

Rhode Island

Bristol Kent Newport Providence Washington

South Carolina

Beaufort Colleton Florence Horry Marion

Berkeley Dillon Georgetown Jasper Williamsburg

Charleston Dorchester Hampton

Texas

Aransas Fort Bend Jasper Live Oak Refugio

Bee Galveston Jefferson Matagorda San Patricio

Brazoria Goliad Jim Wells Montgomery Victoria

Brooks Hardin Kenedy Newton Waller

Calhoun Harris Kleberg Nueces Wharton

Cameron Hildago Lavaca Orange Willacy

Chambers Jackson Liberty

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Virginia

Accomack Hampton City Mathews Poquoson Suffok

Charles City Hopewell City Middlesex Portsmouth Surry

Chesapeake Isle of Wight New Kent Prince George Sussex

Colonial Heights City James City Newport News Prince William Virginia Beach

Essex King and Queen Norfolk City Richmond Westmoreland

Fairfax King George Northampton Southampton Williamsburg

Franklin City King William Northumberland Stafford York

Gloucester Lancaster

p. “Vacant”

The term “vacant” means that less than 25% of the total rentable square footage of a

“building” is rented to a lessee or sub-lessee and used by the lessee or sub-lessee to conduct its

customary operations. Customary operations are further defined as the common operations

and activities of the lessee or sub-lessee when using the building for its intended purpose.

q. “Water Damage"

Accidental discharge or leakage of water or steam as the direct result of the breaking apart

or cracking of a plumbing, heating, air conditioning or other system or appliance (other

than a sump system including its related equipment and parts), that is located on the

“described premises” and contains water or steam.

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Equipment Breakdown Coverage Form

Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties, and what is and

is not covered.

Throughout this policy, the words “you” and “your” refer to the Named Insured shown in the Declarations. The words “we,”

“us” and “our” refer to the Company providing this Insurance. Other words and phrases that appear in quotation marks have

special meaning. Refer to Section G - DEFINITIONS. Examples are shown for illustrative purposes only and do not represent

predicted or expected outcomes.

A. COVERAGE

This Equipment Breakdown Coverage provides insurance for a Covered Cause of Loss as defined in A.1. below. In the

event of a Covered Cause of Loss, we will pay for loss as described in A.2. below.

1. Covered Cause of Loss – “Accident”

The Covered Cause of Loss for this Equipment Breakdown Coverage is an “accident.” Without an “accident,” there

is no Equipment Breakdown Coverage.

 a. “Accident” means a fortuitous event that causes direct physical damage to “covered equipment.” The event

must be one of the following:

 (1) Mechanical breakdown, including rupture or bursting caused by centrifugal force;

 (2) Artificially generated electrical current, including electrical arcing, that damages electrical devices,

appliances or wires;

 (3) Explosion, other than combustion explosion, of steam boilers, steam piping, steam engines or steam

turbines;

 (4) An event inside steam boilers, steam pipes, steam engines or steam turbines that damages such

equipment;

 (5) An event inside hot water boilers or other water heating equipment that damages such equipment; or

 (6) Bursting, cracking or splitting.

 “Accident” does not include any condition or event listed in Definition G.1.b.

 b. “Covered Equipment” means the following:

 (1) Unless specified otherwise in the Declarations:

(a) Equipment that generates, transmits or utilizes energy, including electronic communications and

data processing equipment; or

(b) Equipment which, during normal usage, operates under vacuum or pressure, other than the weight

of its contents.

“Covered equipment” may utilize conventional design and technology or new or newly commercialized

design and technology.

 (2) Except as specifically provided for under Off Premises Property Damage, Service Interruption,

Contingent Business Income, paragraph (2) of Perishable Goods and Civil Authority, such equipment

must be at a location described in the Declarations and must be owned or leased by you or operated

under your control.

 “Covered equipment” does not include any property listed in Definition G.8.b.

2. Coverages Provided

This section lists the coverages that may apply

in the event of an “accident.” Each coverage is

subject to a specific limit as shown in the

Declarations. See paragraph C.2. for details.

These coverages apply only to the direct result

of an “accident.” For each coverage, we will pay

only for that portion of the loss, damage or

expense that is solely attributable to the

“accident.”

 a. Property Damage

 We will pay for physical damage to

“covered property” that is at a location

indicated in the Declarations at the time of

the “accident.”

 b. Off Premises Property Damage

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 If you have transportable “covered

equipment” that, at the time of the

“accident,” is within the Coverage

Territory, but is not:

(1) At a location indicated in the

Declarations; or

(2) At any other location owned or leased

by you,

 we will pay for physical damage to such

“covered equipment.”

 c. Business Income

 (1) We will pay your actual loss of

“business income” during the

“period of restoration” that results

directly from the necessary total or

partial interruption of your business.

 (2) We will also pay any necessary

expenses you incur during the

“period of restoration” to reduce the

amount of loss under this coverage.

We will pay for such expenses to the

extent that they do not exceed the

amount of loss that otherwise would

have been payable under this

coverage.

 (3) We will consider the actual

experience of your business before

the “accident” and the probable

experience you would have had

without the “accident” in

determining the amount of our

payment.

 d. Extra Expense

 We will pay the reasonable and necessary

“extra expense” to operate your business

during the “period of restoration.”

 e. Service Interruption

 We will pay for your loss and expense as

defined under Business Income coverage

and Extra Expense coverage that is the

result of an “interruption of service.”

 f. Contingent Business Income

 We will pay for your loss and expense as

defined under Business Income and Extra

Expense coverages that:

(1) Results from an “interruption of

 supply”; or

(2) Results from an “accident” to an

“anchor location.”

 g. Perishable Goods

 (1) We will pay for physical damage to

“perishable goods” due to

“spoilage.”

 (2) We will also pay for physical

damage to “perishable goods” due to

“spoilage” that is the result of an

“interruption of service.”

 (3) We will also pay for physical

damage to “perishable goods” due to

contamination from the release of

refrigerant, including but not limited

to ammonia.

 (4) We will also pay any necessary

expenses you incur during the

“period of restoration” to reduce the

amount of loss under this coverage.

We will pay for such expenses to the

extent that they do not exceed the

amount of loss that otherwise would

have been payable under this

coverage.

 h. Data Restoration

 (1) We will pay for your reasonable and

necessary cost to research, replace

or restore lost “data.”

 (2) We will also pay for your loss and

expense as defined under Business

Income coverage and Extra Expense

coverage that is the result of h.(1)

above, if such coverage is otherwise

applicable under this policy. This

coverage is included within and

subject to your Data Restoration

limit.

 i. Demolition

(1) This coverage applies if an

“accident” damages a building that

is “covered property” and the loss is

increased by an ordinance or law

that:

(a) Requires the demolition of a

building that is otherwise

reparable;

(b) Is in force at the time of the

“accident”; and

(c) Is not addressed under

Hazardous Substances

coverage.

 (2) We will pay for the following

additional costs to comply with such

ordinance or law:

 (a) Your actual and necessary cost

to demolish and clear the site of

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03 EBC-002 CO 0313 3 of 18

the undamaged parts of the

building; and

 (b) Your actual and necessary cost

to reconstruct the undamaged

parts of the building.

 (3) As used in this coverage, additional

costs mean those beyond what

would have been payable under this

Equipment Breakdown Coverage

had no such ordinance or law been

in force at the time of the “accident.”

 (4) We will also pay for your loss and

expense as defined under Business

Income coverage and Extra Expense

coverage that is the result of i.(1)

above, if such coverage is otherwise

applicable under this policy. This

coverage is included within and

subject to your Demolition limit.

 j. Ordinance or Law

(1) This coverage applies if an

“accident” damages a building that

is “covered property” and the loss is

increased by an ordinance or law

that:

(a) Regulates the construction or

repair of buildings, including

“building utilities”;

(b) Is in force at the time of the

“accident”; and

(c) Is not addressed under

Demolition coverage or

Hazardous Substances

coverage.

 (2) We will pay for the following

additional costs to comply with such

ordinance or law:

 (a) Your actual and necessary cost

to repair the damaged portions

of the building;

 (b) Your actual and necessary cost

to reconstruct the damaged

portions of the building; and

 (c) Your actual and necessary cost

to bring undamaged portions of

the building into compliance

with the ordinance or law.

 (3) As used in this coverage, additional

costs mean those beyond what

would have been payable under this

Equipment Breakdown Coverage

had no such ordinance or law been

in force at the time of the “accident.”

 (4) We will also pay for your loss and

expense as defined under Business

Income coverage and Extra Expense

coverage that is the result of j.(1)

above, if such coverage is otherwise

applicable under this policy. This

coverage is included within and

subject to your Ordinance or Law

limit.

 k. Expediting Expenses

 With respect to your damaged “covered

property,” we will pay the reasonable extra

cost to:

 (1) Make temporary repairs; and

 (2) Expedite permanent repairs or

permanent replacement.

l. Hazardous Substances

 (1) We will pay for the additional cost

to repair or replace “covered

property” because of contamination

by a “hazardous substance.” This

includes the additional expenses to

clean up or dispose of such property.

This does not include contamination

of “perishable goods” by refrigerant,

including but not limited to

ammonia, which is addressed in

Perishable Goods, A.2.g.(3).

 (2) As used in this coverage, additional

costs mean those beyond what

would have been payable under this

Equipment Breakdown Coverage

had no “hazardous substance” been

involved.

 (3) We will also pay for your loss and

expense as defined under Business

Income coverage and Extra Expense

coverage that is the result of l.(1)

above, if such coverage is otherwise

applicable under this policy. This

coverage is included within and

subject to your Hazardous

Substances limit.

 m. Course of Construction

This coverage is automatically included and

does not need to be indicated in the

Declarations.

 (1) You will notify us promptly of any

expansion or rehabilitation of any

location described in the

Declarations.

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03 EBC-002 CO 0313 4 of 18

 (2) All coverages applicable to any

location described in the

Declarations are extended to an

expansion or rehabilitation of that

location.

 (3) This coverage begins at the time you

begin the expansion or rehabilitation

project.

 (4) We will charge you additional

premium for newly acquired

equipment from the date the

equipment is installed.

 n. Civil Authority

We will pay for your loss and expense as

defined under Business Income and Extra

Expense coverages that results from a civil

authority prohibiting access to a location

described in the Declarations due solely to

an “accident” that causes damage to

property within one mile of such location,

provided that such action is taken in

response to dangerous physical conditions

resulting from the “accident,” or to enable a

civil authority to have unimpeded access to

the damaged property.

B. EXCLUSIONS

 We will not pay for any excluded loss, damage or

expense, even though any other cause or event

contributes concurrently or in any sequence to the

loss, damage or expense.

 1. We will not pay for loss, damage or expense

caused directly or indirectly by any of the

following, whether or not caused by or resulting

from an “accident.”

 a. Fire and Explosion

 (1) Fire, including smoke from a fire.

 (2) Combustion explosion. This includes,

but is not limited to, a combustion

explosion of any steam boiler or

other fired vessel.

 (3) Any other explosion, except as

specifically provided in A.1.a.(3).

 b. Ordinance or Law

The enforcement of, or change in, any

ordinance, law, regulation, rule or ruling

regulating or restricting repair,

replacement, alteration, use, operation,

construction or installation, except as

specifically provided in A.2.i., j. and l.

(Demolition, Ordinance or Law and

Hazardous Substances coverages).

 c. Earth Movement

Earth movement, whether natural or

human-made, including but not limited to

earthquake, shock, tremor, subsidence,

landslide, rock fall, earth sinking, sinkhole

collapse or tsunami.

 d. Nuclear Hazard

 Nuclear reaction, detonation or radiation,

or radioactive contamination, however

caused.

 e. War and Military Action

 (1) War, including undeclared or civil

war;

 (2) Warlike action by a military force,

including action in hindering or

defending against an actual or

expected attack, by any government,

sovereign or other authority using

military personnel or other agents; or

 (3) Insurrection, rebellion, revolution,

usurped power, political violence or

action taken by governmental

authority in hindering or defending

against any of these.

 f. Water

 (1) Flood, surface water, waves, tides,

tidal waves, overflow of any body of

water, or their spray, all whether

driven by wind or not;

 (2) Mudslide or mudflow; or

 (3) Water that backs up or overflows

from a sewer, drain or sump.

 g. Failure to Protect Property

Your failure to use all reasonable means to

protect “covered property” from damage

following an “accident.”

 h. Fines

Fine, penalty or punitive damage.

 i. Mold

Mold, fungus, mildew or yeast, including

any spores or toxins created or produced by

or emanating from such mold, fungus,

mildew or yeast. This includes, but is not

limited to, costs arising from clean-up,

remediation, containment, removal or

abatement of such mold, fungus, mildew,

yeast, spores or toxins. However, this

exclusion does not apply to “spoilage” of

personal property that is “perishable

goods” to the extent that such “spoilage” is

covered under Perishable Goods coverage.

 j. Vandalism

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 Vandalism, meaning a willful and

malicious act that causes damage or

destruction.

 2. We will not pay for an “accident” caused by or

resulting from any of the following causes of

loss:

 a. Lightning.

 b. Windstorm or Hail. However, this

exclusion does not apply when:

 (1) “Covered equipment” located within

a building or structure suffers an

“accident” that results from windblown rain, snow, sand or dust; and

 (2) The building or structure did not first

sustain wind or hail damage to its

roof or walls through which the rain,

snow, sand or dust entered.

 c. Collision or any physical contact caused by

a “vehicle.” This includes damage by

objects falling from aircraft. However, this

exclusion does not apply to any unlicensed

“vehicles” which you own or which are

operated in the course of your business.

 d. Riot or Civil Commotion.

 e. Leakage or discharge of any substance

from an automatic sprinkler system,

including collapse of a tank that is part of

the system.

 f. Volcanic Action.

 g. An electrical insulation breakdown test.

 h. A hydrostatic, pneumatic or gas pressure

test.

 i. Water or other means intended to

extinguish a fire, even when such an

attempt is unsuccessful.

j. Elevator collision.

 3. We will not pay for an “accident” caused by or

resulting from any of the following perils, if

such peril is a covered cause of loss under

another coverage part or policy of insurance you

have, whether collectible or not, and without

regard to whether or not the other coverage part

or policy of insurance provides the same

coverage or scope of coverage as this policy.

 a. Falling Objects.

 b. Weight of Snow, Ice or Sleet.

 c. Water Damage, meaning discharge or

leakage of water or steam as the direct

result of the breaking apart or cracking of

any part of a system or appliance

containing water or steam.

 d. Collapse.

 e. Breakage of Glass.

 f. Freezing caused by cold weather.

g. Discharge of molten material from

equipment, including the heat from such

discharged material.

 4. Exclusions 2. and 3. do not apply if all of the

following are true:

a. The excluded peril occurs away from any

location described in the Declarations and

causes an electrical surge or other electrical

disturbance;

b. Such surge or disturbance is transmitted

through utility service transmission lines to

a described location;

c. At the described location, the surge or

disturbance results in an “accident” to

“covered equipment” that is owned or

operated under the control of you or your

landlord; and

d. The loss, damage or expense caused by

such surge or disturbance is not a covered

cause of loss under another coverage part

or policy of insurance you have, whether

collectible or not, and without regard to

whether or not the other coverage part or

policy of insurance provides the same

coverage or scope of coverage as this

policy.

 5. With respect to Business Income, Extra Expense

and Service Interruption coverages, we will also

not pay for:

 a. Loss associated with business that would

not or could not have been carried on if the

“accident” had not occurred;

 b. Loss caused by your failure to use due

diligence and dispatch and all reasonable

means to resume business;

 c. That part of any loss that extends beyond or

occurs after the “period of restoration.”

This includes, but is not limited to:

 (1) “Business income” that would have

been earned after the “period of

restoration,” even if such loss is the

direct result of the suspension, lapse

or cancellation of a contract during

the “period of restoration”; and

 (2) “Extra expense” to operate your

business after the “period of

restoration,” even if such loss is

contracted for and paid during the

“period of restoration.”

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 d. Any increase in loss resulting from an

agreement between you and your customer

or supplier. This includes, but is not limited

to, contingent bonuses or penalties, late

fees, demand charges, demurrage charges

and liquidated damages.

 6. With respect to Off Premises Property Damage

coverage, Service Interruption coverage,

Contingent Business Income coverage,

paragraph (2) of Perishable Goods coverage and

Civil Authority coverage, we will also not pay

for an “accident” caused by or resulting from

any of the perils listed in Exclusion 3. above,

whether or not such peril is a covered cause of

loss under another coverage part or policy of

insurance you have.

 7. With respect to Data Restoration coverage, we

will also not pay to reproduce:

 a. Software programs or operating systems

that are not commercially available; or

 b. “Data” that is obsolete, unnecessary or

useless to you.

 8. With respect to Demolition and Ordinance or

Law coverages, we will also not pay for:

 a. Increased demolition or reconstruction

costs until they are actually incurred; or

 b. Loss due to any ordinance or law that:

 (1) You were required to comply with

before the loss, even if the building

was undamaged; and

 (2) You failed to comply with;

 whether or not you were aware of such noncompliance.

C. LIMITS OF INSURANCE

 Any payment made under this Equipment Breakdown

Coverage will not be increased if more than one

insured is shown in the Declarations or if you are

comprised of more than one legal entity.

 1. Equipment Breakdown Limit

 The most we will pay for loss, damage or

expense arising from any “one accident” is the

amount shown as the Equipment Breakdown

Limit in the Declarations.

 2. Coverage Limits

 a. The limit of your insurance under each of

the coverages listed in A.2. from loss,

damage or expense arising from any “one

accident” is the amount indicated for that

coverage in the Declarations. These limits

are a part of, and not in addition to, the

Equipment Breakdown Limit. If an amount

of time is shown, coverage will continue

for no more than that amount of time

immediately following the “accident.” If a

coverage is shown as “Included,” that

coverage is provided up to the remaining

amount of the Equipment Breakdown

Limit. If no limit is shown in the

Declarations for a coverage, or if a

coverage is shown as Excluded in the

Declarations, that coverage will be

considered to have a limit of $0.

 b. If two or more coverage limits apply to the

same loss or portion of a loss, we will pay

only the smallest of the applicable limits

for that loss or portion of the loss. This

means that if:

 (1) You have a loss under one of the

coverages listed in A.2.; and

 (2) All or part of the loss is not covered

because the applicable coverage is

Excluded or has a limit that is less

than the amount of your loss,

 we will not pay the remaining amount of

such loss under any other coverage.

 EXAMPLE 1

Property Damage Limit: $7,000,000

Business Income Limit: $1,000,000

Newly Acquired Locations Limit: $500,000

There is an “accident” at a newly acquired location

that results in a Property Damage loss of $200,000

and a Business Income loss of $800,000.

We will pay $500,000, because the entire loss is

subject to the Newly Acquired Locations Limit of

$500,000.

EXAMPLE 2

Property Damage Limit: $7,000,000

Business Income Limit: $500,000

Hazardous Substances Limit: $25,000

There is an “accident” that results in a loss of

$100,000. If no “hazardous substance” had been

involved, the property damage loss would have been

$10,000 and the business income loss would have

been $20,000. The presence of the “hazardous

substance” increased the loss by $70,000 (increasing

the clean up and repair costs by $30,000 and

increasing the business income loss by $40,000).

We will pay $55,000 ($10,000 property damage plus

$20,000 business income plus $25,000 hazardous

substances).

D. DEDUCTIBLES

 1. Deductibles for Each Coverage

 a. Unless the Declarations indicate that your

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deductible is combined for all coverages,

multiple deductibles may apply to any “one

accident.”

b. We will not pay for loss, damage or

expense under any coverage until the

amount of the covered loss or damage

exceeds the deductible amount indicated for

that coverage in the Declarations. We will

then pay the amount of loss, damage or

expense in excess of the applicable

deductible amount, subject to the applicable

limit indicated in the Declarations.

c. If deductibles vary by type of “covered

equipment” and more than one type of

“covered equipment” is involved in any

“one accident,” only the highest deductible

for each coverage will apply.

d. The following applies when a deductible is

expressed as a function of the horsepower

rating of a refrigerating or air conditioning

system. If more than one compressor is used

with a single system, the horsepower rating

of the largest motor or compressor will

determine the horsepower rating of the

system.

 2. Direct and Indirect Coverages

 a. Direct Coverages Deductibles and Indirect

Coverages Deductibles may be indicated in

the Declarations.

 b. Unless more specifically indicated in the

Declarations:

 (1) Indirect Coverages Deductibles

apply to Business Income and Extra

Expense loss, regardless of where

such coverage is provided in this

Equipment Breakdown Coverage;

and

 (2) Direct Coverages Deductibles apply

to all remaining loss, damage or

expense covered by this Equipment

Breakdown Coverage.

 EXAMPLE

 An “accident” results in covered losses as

follows:

 $100,000 Total Loss (all applicable

coverages)

 $ 35,000 Business Income Loss (including

$2,000 of business income loss payable

under Data Restoration coverage)

 $ 5,000 Extra Expense Loss

 In this case, the Indirect coverages loss

totals $40,000 before application of the

Indirect Coverage Deductible. The Direct

coverages loss totals the remaining $60,000

before application of the Direct Coverage

Deductible.

 3. Application of Deductibles

 a. Dollar Deductibles

We will not pay for loss, damage or

expense resulting from any “one accident”

until the amount of loss, damage or expense

exceeds the applicable deductible or

deductibles shown in the Declarations. We

will then pay the amount of loss, damage or

expense in excess of the applicable

deductible or deductibles, subject to the

applicable limits shown in the Declarations.

 b. Time Deductibles

 If a time deductible is shown in the

Declarations, we will not be liable for any

loss occurring during the specified number

of hours or days immediately following the

“accident.” If a time deductible is expressed

in days, each day shall mean twenty-four

consecutive hours.

 c. Multiple of Average Daily Value (ADV)

Deductibles

 If a deductible is expressed as a number

times ADV, that amount will be calculated

as follows:

 The ADV (Average Daily Value) will be

the “business income” that would have

been earned during the period of

interruption had no “accident” occurred,

divided by the number of working days in

that period. The ADV applies to the

“business income” value of the entire

location, whether or not the loss affects the

entire location. If more than one location is

included in the valuation of the loss, the

ADV will be the combined value of all

affected locations. For purposes of this

calculation, the period of interruption may

not extend beyond the “period of

restoration.”

 The number indicated in the Declarations

will be multiplied by the ADV as

determined above. The result will be used

as the applicable deductible.

 EXAMPLE

 Business is interrupted, partially or

completely, for 10 working days. If there

had been no “accident,” the total “business

income” at the affected location for those

10 working days would have been $5,000.

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The Indirect Coverages Deductible is 3

Times ADV.

 $5,000 / 10 = $500 ADV

 3 X $500 = $1,500 Indirect Coverages

Deductible

 d. Percentage of Loss Deductibles

 If a deductible is expressed as a percentage

of loss, we will not be liable for the

indicated percentage of the gross amount of

loss, damage or expense (prior to any

applicable deductible or coinsurance)

insured under the applicable coverage. If

the dollar amount of such percentage is less

than the indicated Minimum Deductible,

the Minimum Deductible will be the

applicable deductible.

E. LOSS CONDITIONS

 The following conditions apply:

 1. Abandonment

 There can be no abandonment of any property to

us.

 2. Brands and Labels

a. If branded or labeled merchandise that is

“covered property” is damaged by an

“accident,” but retains a salvage value, you

may:

(1) Stamp the word SALVAGE on the

merchandise or its containers if the

stamp will not physically damage the

merchandise; or

(2) Remove the brands or labels, if

doing so will not physically damage

the merchandise. You must re-label

the merchandise or its containers to

comply with the law.

b. We will pay for any reduction in value of

the salvage merchandise resulting from

either of the two actions listed in 2.a.

above, subject to all applicable limits.

c. We will also pay the reasonable and

necessary expenses you incur to perform

either of the two actions described in 2.a.

above. We will pay for such expenses to

the extent that they do not exceed the

amount recoverable from salvage.

d. If a Brands and Labels Limit is shown on

the Declarations, we will not pay more than

the indicated amount for coverage under

this Condition.

 3. Coinsurance - Business Income Coverage

a. Unless otherwise shown in the

Declarations, Business Income coverage is

subject to coinsurance. This means that we

will not pay the full amount of any

“business income” loss if the “business

income actual annual value” is greater than

the “business income estimated annual

value” at the affected location at the time of

the “accident.” Instead, we will determine

the most we will pay using the following

steps:

 (1) Divide the “business income

estimated annual value” by the

“business income actual annual

value” at the time of the “accident”;

 (2) Multiply the total amount of the

covered loss of “business income”

by the amount determined in

paragraph (1) above;

 (3) Subtract the applicable deductible

from the amount determined in

paragraph (2) above;

 The resulting amount, or the Business

Income Limit, whichever is less, is the most

we will pay. For the remainder, you will

either have to rely on other insurance or

absorb the loss yourself.

 b. Coinsurance applies separately to each

insured location.

 c. If you report a single “business income

estimated annual value” for more than one

location, without providing information on

how that amount should be distributed

among the locations, we will distribute the

amount evenly among all applicable

locations.

 EXAMPLE 1 (Underinsurance)

 When:

 The “business income actual annual value” at

the location of loss at the time of the “accident”

is $200,000.

 The “business income estimated annual value”

shown in the Declarations for the location of

loss is $100,000.

 The actual loss of “business income” resulting

from the “accident” is $40,000.

 The Business Income limit is $100,000.

 The Business Income deductible is $5,000.

 Step 1: $100,000 / $200,000 = .5

 Step 2: $40,000 x.5 = $20,000

 Step 3: $20,000 - $5,000 = $15,000

 The total “business income” loss recovery, after

deductible, would be $15,000. For the

remainder, you will either have to rely on other

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03 EBC-002 CO 0313 9 of 18

insurance or absorb the loss yourself.

 We will also charge you an additional premium

in recognition of the “business income actual

annual value.”

 EXAMPLE 2 (Adequate insurance)

 When:

 The “business income actual annual value” at

the location of loss at the time of the “accident”

is $200,000.

 The “business income estimated annual value”

shown in the Declarations for the location of

loss is $200,000.

 The actual loss of “business income” resulting

from the “accident” is $40,000.

 The Business Income limit is $100,000.

 The Business Income deductible is $5,000.

 Step 1: $200,000 / $200,000 = 1

 Step 2: $40,000 x 1 = $40,000

 Step 3: $40,000 - $5,000 = $35,000

 The total “business income” loss recovery, after

deductible, would be $35,000.

 4. Coinsurance – Coverages other than Business

Income

 Coverages other than Business Income may be

subject to coinsurance if so indicated in the

Declarations. If a Coinsurance percentage is

shown in the Declarations, the following

condition applies.

 a. We will not pay the full amount of any loss

if the value of the property subject to the

coverage at the time of the “accident” times

the Coinsurance percentage shown for it in

the Declarations is greater than the

applicable limit.

 Instead, we will determine the most we will

pay using the following steps:

 (1) Multiply the value of the property

subject to the coverage at the time of

the “accident” by the Coinsurance

percentage;

 (2) Divide the applicable limit by the

amount determined in step (1);

 (3) Multiply the total amount of loss,

before the application of any

deductible, by the amount

determined in step (2); and

 (4) Subtract the deductible from the

amount determined in step (3).

 We will pay the amount determined in step

(4) or the applicable limit, whichever is

less. For the remainder, you will either have

to rely on other insurance or absorb the loss

yourself.

 b. Coinsurance applies separately to each

insured location.

 EXAMPLE 1 (Underinsurance)

 When:

 The actual value of “perishable goods” at the

location of loss at the time of the “accident” is

$200,000.

 The Perishable Goods limit is $100,000 @ 80%

coinsurance.

 The loss under Perishable Goods coverage

resulting from the “accident” is $60,000.

 The Perishable Goods deductible is $5,000.

 Step 1: $200,000 x 80% = $160,000

 Step 2: $100,000/$160,000 = .625

 Step 3: $60,000 x .625 = $37,500

 Step 4: $37,500 - $5,000 = $32,500

 The total Perishable Goods loss recovery, after

deductible, would be $32,500. For the

remainder, you will either have to rely on other

insurance or absorb the loss yourself.

 EXAMPLE 2 (Adequate insurance)

 When:

 The actual value of “perishable goods” at the

location of loss at the time of the “accident” is

$100,000.

 The Perishable Goods limit is $100,000 @ 80%

coinsurance.

 The loss under Perishable Goods coverage

resulting from the “accident” is $60,000.

 The Perishable Goods deductible is $5,000.

 Step 1: $100,000 x 80% = $80,000

 Step 2: $100,000/$80,000 = 1.25

 Coinsurance does not apply.

 Step 3: $60,000 - $5,000 = $55,000

 The total Perishable Goods loss recovery, after

deductible, would be $55,000.

 5. Defense

 We have the right, but are not obligated, to

defend you against suits arising from claims of

owners of property in your care, custody or

control. When we do this, it will be at our

expense.

 6. Duties in the Event of Loss or Damage

 You must see that the following are done in the

event of loss or damage:

 a. Give us a prompt notice of the loss or

damage, including a description of the

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property involved.

 b. You must reduce your loss, damage or

expense, if possible, by:

 (1) Protecting property from further

damage. We will not pay for your

failure to protect property, as stated

in Exclusion B.1.g.;

 (2) Resuming business, partially or

completely at the location of loss or

at another location;

 (3) Making up lost business within a

reasonable amount of time. This

includes working extra time or

overtime at the location of loss or at

another location. The reasonable

amount of time does not necessarily

end when the operations are

resumed;

 (4) Using merchandise or other property

available to you;

 (5) Using the property or services of

others; and

 (6) Salvaging the damaged property.

 c. Allow us a reasonable time and opportunity

to examine the property and premises

before repair or replacement is undertaken

or physical evidence of the “accident” is

removed. But you must take whatever

measures are necessary for protection from

further damage.

 d. Make no statement that will assume any

obligation or admit any liability, for any

loss, damage or expense for which we may

be liable, without our consent.

 e. Promptly send us any legal papers or

notices received concerning the loss,

damage or expense.

 f. As often as may be reasonably required,

permit us to inspect your property, premises

and records. Also permit us to take samples

of damaged and undamaged property for

inspection, testing and analysis, and permit

us to make copies from your books and

records.

 g. If requested, permit us to examine you and

any of your agents, employees and

representatives under oath. We may

examine any insured under oath while not

in the presence of any other insured. Such

examination:

 (1) May be at any time reasonably

required;

 (2) May be about any matter relating to

this insurance, your loss, damage or

expense, or your claim, including,

but not limited to, your books and

records; and

 (3) May be recorded by us by any

methods we choose.

 h. Send us a signed, sworn proof of loss

containing the information we request. You

must do this within 60 days after our

request.

 i. Cooperate with us in the investigation and

settlement of the claim.

 7. Errors and Omissions

 a. We will pay your loss covered by this

Equipment Breakdown coverage if such

loss is otherwise not payable solely because

of any of the following:

 (1) Any error or unintentional omission

in the description or location of

property as insured under this

policy;

 (2) Any failure through error to include

any premises owned or occupied by

you at the inception of this policy; or

 (3) Any error or unintentional omission

by you that results in cancellation of

any premises insured under this

policy.

 b. No coverage is provided as a result of any

error or unintentional omission by you in

the reporting of values or the coverage you

requested.

 c. It is a condition of this coverage that such

errors or unintentional omissions shall be

reported and corrected when discovered.

The policy premium will be adjusted

accordingly to reflect the date the premises

should have been added had no error or

omission occurred.

 d. If an Errors and Omissions Limit is shown

on the Declarations, we will not pay more

than the indicated amount for coverage

under this Condition.

 8. Proving Your Loss

 It is your responsibility, at your own expense, to

provide documentation to us:

a. Demonstrating that the loss, damage or

expense is the result of an “accident”

covered under this Equipment Breakdown

Coverage; and

b. Calculating the dollar amount of the loss,

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damage and expense that you claim is

covered.

 Your responsibility in 8.a. above is without

regard to whether or not the possible “accident”

occurred at your premises or involved your

equipment.

 9. Salvage and Recoveries

 When, in connection with any loss under this

Equipment Breakdown Coverage, any salvage or

recovery is received after the payment for such

loss, the amount of the loss shall be refigured on

the basis on which it would have been settled

had the amount of salvage or recovery been

known at the time the loss was originally

determined. Any amounts thus found to be due

either party from the other shall be paid

promptly.

 10. Valuation

 We will determine the value of “covered

property” as follows:

 a. Except as specified otherwise, our payment

for damaged “covered property” will be the

smallest of:

 (1) The cost to repair the damaged

property;

 (2) The cost to replace the damaged

property on the same site; or

 (3) The amount you actually spend that

is necessary to repair or replace the

damaged property.

 b. The amount of our payment will be based

on the most cost-effective means to replace

the function, capacity and remaining useful

life of the damaged property. This may

include the use of generic, used or

reconditioned parts, equipment or property.

 c. Except as described in d. below, you must

pay the extra cost of replacing damaged

property with property of a better kind or

quality or of a different size or capacity.

 d. Environmental, Safety and Efficiency

Improvements

 If “covered equipment” requires

replacement due to an “accident,” we will

pay your additional cost to replace with

equipment that we agree is better for the

environment, safer for people or more

energy efficient than the equipment being

replaced, subject to the following

conditions:

 (1) We will not pay more than 150% of

what the cost would have been to

replace with like kind and quality;

 (2) We will not pay to increase the size

or capacity of the equipment;

 (3) This provision only applies to

Property Damage coverage;

 (4) This provision does not increase any

of the applicable limits;

 (5) This provision does not apply to any

property valued on an Actual Cash

Value basis; and

 (6) This provision does not apply to the

replacement of component parts.

 e. The following property will be valued on

an Actual Cash Value basis:

 (1) Any property that does not currently

serve a useful or necessary function

for you;

 (2) Any “covered property” that you do

not repair or replace within 24

months after the date of the

“accident”; and

 (3) Any “covered property” for which

Actual Cash Value coverage is

specified in the Declarations.

 Actual Cash Value includes deductions for

depreciation.

 f. If any one of the following conditions is

met, property held for sale by you will be

valued at the sales price as if no loss or

damage had occurred, less any discounts

and expenses that otherwise would have

applied:

 (1) The property was manufactured by

you;

 (2) The sales price of the property is

less than the replacement cost of the

property; or

 (3) You are unable to replace the

property before its anticipated sale.

 g. Except as specifically provided for under

Data Restoration coverage, “data” and

“media” will be valued on the following

basis:

 (1) For mass-produced and

commercially available software, at

the replacement cost.

 (2) For all other “data” and “media,” at

the cost of blank “media” for

reproducing the records. We will not

pay for “data” representing financial

records based on the face value of

such records.

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 h. Air conditioning or refrigeration equipment

that utilizes a refrigerant containing CFC

(chlorofluorocarbon) substances will be

valued at the cost to do the least expensive

of the following:

 (1) Repair or replace the damaged

property and replace any lost CFC

refrigerant;

 (2) Repair the damaged property,

retrofit the system to accept a nonCFC refrigerant and charge the

system with a non-CFC refrigerant;

or

 (3) Replace the system with one using a

non-CFC refrigerant.

 In determining the least expensive option,

we will include any associated Business

Income or Extra Expense loss. If option (2)

or (3) is more expensive than (1), but you

wish to retrofit or replace anyway, we will

consider this better for the environment and

therefore eligible for valuation under

paragraph d., Environmental, Safety and

Efficiency Improvements. In such case,

E.10.d.(1) is amended to read: “We will not

pay more than 125% of what the cost

would have been to repair or replace with

like kind and quality.”

F. ADDITIONAL CONDITIONS

 The following conditions apply in addition to the

Loss Conditions:

 1. Additional Insured

 If a person or organization is designated in this

Equipment Breakdown Coverage as an

additional insured, we will consider them to be

an insured under this Equipment Breakdown

Coverage only to the extent of their interest in

the “covered property.”

 2. Bankruptcy

 The bankruptcy or insolvency of you or your

estate will not relieve you or us of any

obligation under this Equipment Breakdown

Coverage.

 3. Cancellation

 a. The first Named Insured shown in the

Declarations may cancel this policy by

mailing or delivering to us advance written

notice of cancellation.

 b. We may cancel this policy by mailing or

delivering to the first Named Insured

written notice of cancellation at least:

 (1) 10 days before the effective date of

cancellation if we cancel for

nonpayment of premium; or

 (2) 30 days before the effective date of

cancellation if we cancel for any other

reason.

c. We will mail or deliver our notice to the

first Named Insured’s last mailing address

known to us.

 d. Notice of cancellation will state the

effective date of cancellation. The policy

period will end on that date.

 e. If this policy is canceled, we will send the

first Named Insured any premium refund

due. If we cancel, the refund will be pro

rata. If the first Named Insured cancels, the

refund may be less than pro rata. The

cancellation will be effective even if we

have not made or offered a refund.

 f. If notice is mailed, proof of mailing will be

sufficient proof of notice.

4. Changes

 This policy contains all the agreements between

you and us concerning the insurance afforded.

The first Named Insured shown in the

Declarations is authorized to make changes in

the terms of this policy with our consent. This

policy’s terms can be amended or waived only

by endorsement issued by us and made a part of

this policy.

 5. Concealment, Misrepresentation or Fraud

 We will not pay for any loss and coverage will

be void if you or any additional insured at any

time:

 a. Intentionally cause or allow loss, damage

or expense in order to collect on insurance;

or

 b. Intentionally conceal or misrepresent a

material fact concerning:

 (1) This Equipment Breakdown

Coverage;

 (2) The “covered property”;

 (3) Your interest in the “covered

property”; or

 (4) A claim under this Equipment

Breakdown Coverage.

6. Examination of Your Books and Records

 We may examine and audit your books and

records as they relate to this policy at any time

during the policy period and up to three years

afterward.

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7. Inspections and Surveys

 a. We have the right to:

 (1) Make inspections and surveys at any

time;

 (2) Give you reports on the conditions we

find; and

 (3) Recommend changes.

b. We are not obligated to make any

inspections, surveys, reports or

recommendations and any such actions

relate only to insurability and the premiums

to be charged. We do not make safety

inspections. We do not undertake to

perform the duty of any person or

organization to provide for the health or

safety of workers or the public. And we do

not warrant that conditions:

 (1) Are safe or healthful; or

 (2) Comply with laws, regulations, codes

or standards.

 c. Paragraphs a. and b. of this condition apply

not only to us, but also to any rating,

advisory, rate service or similar

organization which makes insurance

inspections, surveys, reports or

recommendations.

 8. Jurisdictional Inspections

 It is your responsibility to comply with any state

or municipal boiler and pressure vessel

regulations. If any “covered equipment” that is

“covered property” requires inspection to

comply with such regulations, at your option we

agree to perform such inspection.

 9. Legal Action Against Us

 No one may bring a legal action against us

under this Equipment Breakdown Coverage

unless:

 a. There has been full compliance with all the

terms of this Equipment Breakdown

Coverage; and

 b. The action is brought within two years after

the date of the “accident” or

 c. We agree in writing that you have an

obligation to pay for damage to “covered

property” of others or until the amount of

that obligation has been determined by

final judgment or arbitration award. No one

has the right under this policy to bring us

into an action to determine your liability.

 10. Liberalization

 If we adopt any standard form revision for

general use that would broaden the coverage

under this Equipment Breakdown Coverage

without additional premium, the broadened

coverage will apply to this Equipment

Breakdown Coverage commencing on the date

that such revision becomes effective in the

jurisdiction where the “accident” occurs.

 11. Loss Payable

 a. We will pay you and the loss payee shown

in the Declarations for loss covered by this

Equipment Breakdown Coverage, as

interests may appear. The insurance covers

the interest of the loss payee unless the loss

results from conversion, secretion or

embezzlement on your part or on the part

of the loss payee.

 b. We may cancel the policy as allowed by the

Cancellation Condition. Cancellation ends

this agreement as to the loss payee’s

interest. If we cancel, we will mail you and

the loss payee the same advance notice.

 c. If we make any payment to the loss payee,

we will obtain their rights against any other

party.

 12. Maintaining Your Property and Equipment

 It is your responsibility to appropriately

maintain your property and equipment. We will

not pay your costs to maintain, operate, protect

or enhance your property or equipment, even if

such costs are to comply with our

recommendations or prevent loss, damage or

expense that would be covered under this

policy.

 13. Mortgage Holders

 a. The term mortgage holder includes trustee.

 b. We will pay for direct damage to “covered

property” due to an “accident” to “covered

equipment” to you and each mortgage

holder shown in the Declarations in their

order of precedence, as interests in the

“covered property” may appear.

 c. The mortgage holder has the right to

receive loss payment even if the mortgage

holder has started foreclosure or similar

action on the “covered property.”

 d. If we deny your claim because of your acts

or because you have failed to comply with

the terms of this Equipment Breakdown

Coverage, the mortgage holder will still

have the right to receive loss payment,

provided the mortgage holder does all of

the following:

 (1) Pays any premium due under this

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Equipment Breakdown Coverage at

our request if you have failed to do

so;

 (2) Submits a signed, sworn proof of loss

within 60 days after receiving notice

from us of your failure to do so;

 (3) Has notified us of any change in

ownership or material change in risk

known to the mortgage holder; and

 (4) Has complied with all other terms

and conditions of this Policy.

 All of the terms of this Equipment

Breakdown Coverage will then apply

directly to the mortgage holder.

 e. If we pay the mortgage holder for any loss

and deny payment to you because of your

acts or because you have failed to comply

with the terms of this Equipment

Breakdown Coverage:

 (1) The mortgage holder's right under

the mortgage will be transferred to

us to the extent of the amount we

pay; and

 (2) The mortgage holder's right to

recover the full amount of the

mortgage holder's claim will not be

impaired.

 At our option, we may pay to the mortgage

holder the whole principal on the mortgage

plus any accrued interest. In this event,

your mortgage and note will be transferred

to us and you will pay your remaining

mortgage debt to us.

 f. If we cancel this policy, we will give

written notice to the mortgage holder at

least:

 (1) 10 days before the effective date of

cancellation if we cancel for your

nonpayment of premium; or

 (2) 30 days before the effective date of

cancellation if we cancel for any

other reason.

 g. If we elect not to renew this policy, we will

give written notice to the mortgage holder

at least 10 days before the expiration date

of this policy.

 h. If we suspend coverage, it will also be

suspended as respects the mortgage holder.

We will give written notice of the

suspension to the mortgage holder.

 14. Other Insurance

 If there is other insurance that applies to the

same loss, damage or expense, this Equipment

Breakdown Coverage shall apply only as excess

insurance after all other applicable insurance has

been exhausted.

 15. Policy Period, Coverage Territory

 Under this Equipment Breakdown Coverage:

 a. The “accident” must occur during the

Policy Period, but expiration of the policy

does not limit our liability.

 b. The “accident” must occur within the

following Coverage Territory:

 (1) The United States of America

(including its territories and

possessions);

 (2) Puerto Rico; and

 (3) Canada.

 c. With respect to Off Premises Property

Damage coverage only, the “accident” may

occur in any country except one in which

the United States has imposed sanctions,

embargoes or similar restrictions on the

provision of insurance.

16. Premiums

 The first Named Insured shown in the

Declarations:

 a. Is responsible for the payment of all

premiums; and

 b. Will be the payee for any return premiums

we pay.

 17. Privilege to Adjust with Owner

 In the event of loss, damage or expense

involving property of others in your care,

custody or control, we have the right to settle the

loss, damage or expense with respect to such

property with the owner of the property.

Settlement with owners of that property will

satisfy any claim of yours.

 18. Suspension

 Whenever “covered equipment” is found to be

in, or exposed to, a dangerous condition, any of

our representatives may immediately suspend

the insurance against loss from an “accident” to

that “covered equipment.” This can be done by

delivering or mailing a written notice of

suspension to:

 a. Your last known address; or

 b. The address where the “covered

equipment” is located.

 Once suspended in this way, your insurance can

be reinstated only by an endorsement for that

“covered equipment.”

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 If we suspend your insurance, you will get a pro

rata refund of premium for that “covered

equipment” for the period of suspension. But the

suspension will be effective even if we have not

yet made or offered a refund.

19. Transfer of Your Rights and Duties Under

This Policy

 Your rights and duties under this policy may not

be transferred without our written consent

except in the case of death of an individual

Named Insured.

 If you die, your rights and duties will be

transferred to your legal representative but only

while acting within the scope of duties as your

legal representative. Until your legal

representative is appointed, anyone having

proper temporary custody of your property will

have your rights and duties but only with respect

to that property.

20. Transfer of Rights of Recovery Against

Others to Us

 If any person or organization to or for whom we

make payment under this Equipment Breakdown

Coverage has rights to recover damages from

another, those rights are transferred to us to the

extent of our payment. That person or

organization must do everything necessary to

secure our rights and must do nothing after loss

to impair them. But you may waive your rights

against another party in writing:

 a. Prior to an “accident.”

 b. After an “accident” only if, at time of the

“accident,” that party is one of the

following:

 (1) Someone insured by this Policy; or

 (2) A business firm:

 (a) Owned or controlled by you; or

 (b) That owns or controls you.

G. DEFINITIONS

 1. “Accident”

 a. “Accident” is defined in A.1.a.

 b. None of the following is an “accident,”

however caused and without regard to

whether such condition or event is normal

and expected or unusual and unexpected:

(1) Depletion, deterioration, rust,

corrosion, erosion, settling or wear

and tear;

(2) Any gradually developing condition;

(3) Any defect, programming error,

programming limitation, computer

virus, malicious code, loss of “data,”

loss of access, loss of use, loss of

functionality or other condition

within or involving “data” or

“media” of any kind;

(4) Contamination by a “hazardous

substance”; or

(5) Misalignment, miscalibration,

tripping off-line, or any condition

which can be corrected by resetting,

tightening, adjusting or cleaning, or

by the performance of maintenance.

2. “Anchor Location” means a location, operated

by others, upon which you depend to attract

customers to your location. An “anchor

location” must have been open for business for at

least six months prior to the “accident,” and must

be located within one mile of your location.

3. “Boilers and Vessels” means:

 a. Boilers;

 b. Steam piping;

 c. Piping that is part of a closed loop used to

conduct heat from a boiler;

 d. Condensate tanks; and

 e. Unfired vessels which, during normal

usage, operate under vacuum or pressure,

other than the weight of contents.

 This term does not appear elsewhere in this

coverage form, but may appear in the

Declarations.

 4. “Building Utilities” means “covered

equipment” permanently mounted on or in a

building and used to provide any of the

following services within the building: heating,

ventilating, air conditioning, electrical power,

hot water, elevator or escalator services, natural

gas service or communications. “Building

utilities” does not include personal property or

equipment used in manufacturing or processing.

 5. “Buried Vessels or Piping” means any piping

or vessel buried or encased in the earth, concrete

or other material, whether above or below grade,

or in an enclosure which does not allow access

for inspection and repair.

 6. “Business Income” means the sum of:

 a. The Net Income (net profit or loss before

income taxes) that would have been earned

or incurred; and

 b. Continuing normal and necessary operating

expenses incurred, including employee

payroll.

 7. “Business Income Actual Annual Value”

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means the “business income” for the current

fiscal year that would have been earned had no

“accident” occurred.

 In calculating the “business income actual

annual value,” we will take into account the

actual experience of your business before the

“accident” and the probable experience you

would have had without the “accident.”

 8. “Business Income Estimated Annual Value”

means the anticipated “business income”

reported to us and shown in the Declarations. If

no value is shown in the Declarations, the

“business income estimated annual value” will

be the most recent report of anticipated

“business income” values on file with us.

 9. “Covered Equipment”

 a. “Covered Equipment” is defined in A.1.b.

 b. None of the following is “covered

equipment”:

(1) Structure, including but not limited to

the structural portions of buildings and

towers, and scaffolding;

(2) Foundation;

(3) Cabinet, compartment, conduit or

ductwork;

(4) Insulating or refractory material;

(5) “Buried vessels or piping”;

(6) Waste, drainage or sewer piping;

(7) Piping, valves or fittings forming a part

of a sprinkler or fire suppression

system;

(8) Water piping that is not part of a closed

loop used to conduct heat or cooling

from a boiler or a refrigeration or air

conditioning system;

(9) “Vehicle” or any equipment mounted

on a “vehicle”;

(10) Satellite, spacecraft or any equipment

mounted on a satellite or spacecraft;

(11) Dragline, excavation or construction

equipment;

(12) Equipment manufactured by you for

sale; or

(13) “Data.”

 10. “Covered Property”

 a. “Covered Property” means property that

you own or property that is in your care,

custody or control and for which you are

legally liable. Such property must be at a

location described in the Declarations

except as provided under Off Premises

Property Damage coverage.

 b. None of the following is “covered

property”:

(1) Accounts, bills, currency, deeds or

other evidences of debt, money, notes

or securities;

(2) Fine arts, jewelry, furs or precious

stones;

(3) Precious metal, unless forming a part of

“covered equipment”;

(4) Animals;

(5) Contraband, or property in the course

of illegal transportation or trade;

(6) Land (including land on which the

property is located), water, trees,

growing crops or lawns; or

(7) Shrubs or plants, unless held indoors

for retail sale.

 11. “Data” means information or instructions stored

in digital code capable of being processed by

machinery.

 12. “Electrical Generating Equipment”

 a. “Electrical Generating Equipment” means

equipment which converts any other form

of energy into electricity. This includes, but

is not limited to, the following:

(1) Boilers used primarily to provide steam

for one or more turbine-generator units;

(2) Turbine-generators (including steam,

gas, water or wind turbines);

(3) Engine-generators;

(4) Fuel cells or other alternative electrical

generating equipment;

(5) Electrical transformers, switchgear and

power lines used to convey the

generated electricity; and

(6) Associated equipment necessary for the

operation of any of the equipment listed

in (1) through (5) above.

 b. “Electrical Generating Equipment” does

not mean:

(1) Elevator or hoist motors that generate

electricity when releasing cable; or

(2) Equipment intended to generate

electricity solely on an emergency,

back-up basis.

 This term does not appear elsewhere in this

coverage form, but may appear in the

Declarations.

 13. “Extra Expense” means the additional cost you

incur to operate your business over and above

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03 EBC-002 CO 0313 17 of 18

the cost that you normally would have incurred

to operate your business during the same period

had no “accident” occurred.

 14. “Hazardous Substance” means any substance

that is hazardous to health or has been declared

to be hazardous to health by a governmental

agency.

15. “Interruption of Service”

 a. “Interruption of Service” means a failure or

disruption of the normal supply of any of

the Covered Services listed in b. below,

when such failure or disruption is caused

by an “accident” to “covered equipment,”

subject to the conditions listed in c. through

f. below.

 b. Covered Services are electrical power,

waste disposal, air conditioning,

refrigeration, heating, natural gas,

compressed air, water, steam, internet

access, telecommunications services, wide

area networks and data transmission.

 c. The “covered equipment” must either be:

(1) Owned by a company with whom you

have a contract to supply you with one

of the Covered Services; or

(2) Used to supply you with one of the

Covered Services and located within

one mile of a location described in the

Declarations.

 d. If a Service Interruption Distance

Limitation is indicated in the Declarations,

the “covered equipment” suffering the

“accident” must be located within the

indicated distance of any location described

in the Declarations.

e. Unless otherwise shown in the

Declarations, no failure or disruption of

service will be considered to qualify as an

“interruption of service” until the failure or

disruption exceeds 24 hours immediately

following the “accident.”

 f. “Interruption of service” does not include

any failure or disruption, whether or not

arising from or involving an “accident,” in

which a supplier could have continued to

provide service to the location but chose

for any reason to reduce or discontinue

service.

16. “Interruption of Supply”

 a. “Interruption of Supply” means a failure or

disruption of the normal supply of any of

the Covered Contingencies listed below,

when such failure or disruption is caused

by an “accident” to “covered equipment”

that is located at a Contingent Business

Income supplier or receiver location

indicated in the Declarations. If no

Contingent Business Income supplier or

receiver location is indicated in the

Declarations, the “covered equipment”

must be owned by a supplier from whom

you have received the Covered

Contingency for at least six months prior to

the “accident” or a receiver to whom you

have supplied the Covered Contingency for

at least six months prior to the “accident.”

 b. Covered Contingencies are raw materials,

intermediate products, finished products,

packaging materials and product processing

services.

17. “Media” means material on which “data” is

recorded, such as magnetic tapes, hard disks,

optical disks or floppy disks.

18. “One Accident” means all “accidents”

occurring at the same time from the same event.

If an “accident” causes other “accidents,” all will

be considered “one accident.”

19. “Ordinary Payroll” means the Payroll

Expenses associated with all employees other

than executives, department managers and

employees under contract.

 As used above, Payroll Expenses means all

payroll, employee benefits directly related to

payroll, FICA payments you pay, union dues

you pay and workers compensation premiums.

 “Ordinary payroll” does not include pensions or

directors fees.

 This term does not appear elsewhere in this

coverage form, but may appear in the

Declarations.

20. “Period of Restoration” means the period of

time that begins at the time of the “accident” and

continues until the earlier of:

 a. The date the physical damage to “covered

equipment” is repaired or replaced; or

 b. The date on which such damage could have

been repaired or replaced with the exercise

of due diligence and dispatch,

 plus the number of days, if any, shown in the

Declarations for Extended Period of Restoration.

 As respects Civil Authority coverage only,

“period of restoration” means the period of time

that begins as of the time access is prohibited by

action of the civil authority and continues until

the earlier of:

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03 EBC-002 CO 0313 18 of 18

 (a) 21 days thereafter; or

 (b) The date access is restored.

21. “Perishable Goods” means any “covered

property” subject to deterioration or impairment

as a result of a change of conditions, including

but not limited to temperature, humidity or

pressure.

22. “Production Machinery” means any machine

or apparatus that processes or produces a

product intended for eventual sale. This includes

all component parts of such machine or

apparatus and any other equipment used

exclusively with such machine or apparatus.

However, “production machinery” does not

mean any boiler, or fired or unfired pressure

vessel.

 This term does not appear elsewhere in this

coverage form, but may appear in the

Declarations.

23. “Spoilage” means any detrimental change in

state. This includes but is not limited to thawing

of frozen goods, warming of refrigerated goods,

freezing of fresh goods, solidification of liquid

or molten material and chemical reactions to

material in process.

24. “Vehicle” means any machine or apparatus that

is used for transportation or moves under its own

power. “Vehicle” includes, but is not limited to,

car, truck, bus, trailer, train, aircraft, watercraft,

forklift, bulldozer, tractor or harvester.

 However, any property that is stationary,

permanently installed at a covered location and

that receives electrical power from an external

power source will not be considered a “vehicle.”

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THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CYBERONE COVERAGE AND DATA COMPROMISE COVERAGE

03 CCE-001 CO 0314

In consideration of a premium charged, it is agreed that following coverage change applies, but only to coverage provided at

insured locations identified by property identification numbers where the Evidence of Property Insurance issued to the Named

Insured states that this endorsement applies.

CyberOne Coverage (Network Security Liability) and Data Compromise Coverage (Response Expenses and Defense and

Liability) are included as provided in the following coverage forms, which are attached to this endorsement:

CyberOne Coverage - Form Number 01 C1 0314

Data Compromise Coverage – Form Number 03 DC 0314

Limits Apply “Per Account – Not “Per Location”

If a covered cause of loss occurs at more than one location in the same occurrence, the Limits of Liability in the CyberOne

Coverage Form and the Data Compromise Coverage Form are the most that the Company will pay for each “Account”,

irrespective of the number of locations included in an “Account”.

Definition:

“Account” means the sum of all insured locations that are identified with the same Account Identification Number (AIN) in the

Evidences Of Commercial Property Insurance that are issued for those insured locations.

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED

CIBA

Endorsement

Page 1 of 1

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PROPERTY

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

03 C1 0314 © 2013

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permission

Page 1 of 4

CYBERONE COVERAGE

NETWORK SECURITY LIABILITY

Coverage under this endorsement is subject to the

following SCHEDULE:

NETWORK SECURITY LIABILITY

Network Security Liability Limit $50,000

 Annual Aggregate

Network Security Liability Deductible $5,000

 Per Occurrence

The following is added as an Additional Coverage:

NETWORK SECURITY LIABILITY

COVERED CAUSE OF LOSS

This Network Security Liability coverage applies only

if all of the following conditions are met:

1. You first receive notice of a “network security

liability suit” during the policy period for which this

endorsement is applicable or any Extended

Reporting Periods; and

2. Such “network security liability suit” is reported to

us as soon as practicable, but in no event more

than 60 days after the date it is first received by

you.

COVERAGES PROVIDED

If both of the conditions listed above in COVERED

CAUSE OF LOSS have been met, then we will

provide you the following coverages for loss directly

arising from such “network security liability suit”.

1. Defense

We will pay your necessary and reasonable

“network security liability defense costs”.

2. Settlement Costs

We will pay your necessary and reasonable

“network security liability settlement costs”.

LIMITS

Except for post-judgment interest, the most we will

pay under Network Security Liability coverage is the

Network Security Liability Limit indicated for this

endorsement.

The Network Security Liability Limit is an annual

aggregate limit. This amount is the most we will pay

for the total of all loss (other than post-judgment

interest) arising out of all “network security liability

suits” of which you first receive notice during the

present annual policy period or any Extended

Reporting Periods. This limit applies regardless of the

number of “network security liability suits” of which

you first receive notice during that period.

You may first receive notice of a “network security

liability suit” in one policy period but it may cause

covered costs in one or more subsequent policy

periods. If so, all covered costs arising from such

“network security liability suit” (other than postjudgment interest) will be subject to the Network

Security Liability Limit applicable to the policy period

when notice of the “network security liability suit” was

first received by you.

The Network Security Liability Limit for the Extended

Reporting Periods (if applicable) shall be part of, and

not in addition to, the Network Security Liability Limit

for the immediately preceding policy period.

DEDUCTIBLE

The Network Security Liability coverage is subject to

the Network Security Liability Deductible indicated in

the SCHEDULE for this endorsement. You shall be

responsible for the applicable deductible amount as

respects loss arising from each “network security

liability suit” covered under this endorsement.

EXCLUSIONS, ADDITIONAL

CONDITIONS AND DEFINITIONS

EXCLUSIONS

The following additional exclusions apply to this

coverage:

We will not pay for costs or loss arising from the

following:

 1. Loss to the internet, an internet service provider,

or any computer or computer system that is not

owned or leased by you and operated under your

control.

2. Costs to research or correct any deficiency.

3. Any fines or penalties.

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4. Any criminal investigations or proceedings.

 5. Any threat, extortion or blackmail. This includes,

but is not limited to, ransom payments and private

security assistance.

6. Your intentional or willful complicity in a covered

loss event or your reckless disregard for the

security of your computer system or data.

7. Any criminal, fraudulent or dishonest act, error or

omission, or any intentional or knowing violation of

the law by you.

8. That part of any “network security liability suit”

seeking any non-monetary relief.

9. Any “network security liability suit” arising from a

propagation of malware or denial of service attack

that occurred prior to the first inception of this

CyberOne coverage endorsement or any

coverage substantially similar to that described in

this endorsement.

10. The propagation or forwarding of malware,

including viruses, worms, Trojans, spyware and

keyloggers in connection with hardware or

software created, produced or modified by you for

sale, lease or license to third parties.

ADDITIONAL CONDITIONS

The following additional conditions apply to all

coverages under this endorsement.

A. Due Diligence

You agree to use due diligence to prevent and

mitigate costs covered under this endorsement.

This includes, but is not limited to, complying with

reasonable and industry-accepted protocols for:

1. Providing and maintaining appropriate

computer and internet security; and

2. Maintaining and updating at appropriate

intervals backups of computer data.

B. Duties in the Event of a “Network Security

Liability Suit”

1. If a “network security liability suit” is brought

against you, you must:

a. Immediately record the specifics of the

“network security liability suit” and the

date received; and

b. Provide us with written notice, as soon as

practicable, but in no event more than 60

days after the date the “network security

liability suit” is first received by you.

c. Immediately send us copies of any

demands, notices, summonses or legal

papers received in connection with the

“network security liability suit”;

d. Authorize us to obtain records and other

information;

e. Cooperate with us in the investigation,

settlement or defense of the “network

security liability suit”;

f. Assist us, upon our request, in the

enforcement of any right against any

person or organization which may be

liable to you because of loss to which this

insurance may also apply; and

g. Not take any action, or fail to take any

required action, that prejudices your

rights or our rights with respect to such

“network security liability suit”.

C. Extended Reporting Periods

1. You shall have the right to the Extended Reporting Periods described in this section, in

the event that:

a. You or we cancel this CyberOne coverage;

b. You or we refuse to renew this CyberOne

coverage; or

c. We renew this CyberOne coverage on an

other than a claims-made basis or with a

retroactive date later than the date of the

first inception of this CyberOne coverage

endorsement or any coverage substantially similar to that described in this endorsement;

2. If an event as specified in Paragraph 1. has

occurred, you shall have the right to the following:

a. An Automatic Extended Reporting Period

of 30 days after the effective date of cancellation or nonrenewal at no additional

premium in which to give to us written notice of a “network security liability suit” of

which you first receive notice during said

Automatic Extended Reporting Period for

any propagation of malware or denial of

service attack occurring before the end of

the coverage period for this CyberOne

coverage and which is otherwise covered

by this CyberOne coverage; and

b. Upon payment of an additional premium

of 100% of the full annual premium applicable to this CyberOne coverage, a Supplemental Extended Reporting Period of 1

year immediately following the effective

date of cancellation or nonrenewal in

which to give to us written notice of a

“network security liability suit” of which

you first receive notice during said Supplemental Extended Reporting Period for

any propagation of malware or denial of

service attack occurring before the end of

the coverage period for this CyberOne

coverage and which is otherwise covered

by this CyberOne coverage.

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To obtain the Supplemental Extended

Reporting Period, you must request it in

writing and pay the additional premium

due, within 30 days of the effective date

of cancellation or nonrenewal. The additional premium for the Supplemental Extended Reporting Period shall be fully

earned at the inception of the Supplemental Extended Reporting Period. If we

do not receive the written request as required, you may not exercise this right at

a later date.

 This insurance, provided during the Supplemental Extended Reporting Period, is

excess over any other valid and collectible insurance that begins or continues in

effect after the Supplemental Extended

Reporting Period becomes effective,

whether the other insurance applies on a

primary, excess, contingent, or any other

basis.

D. Network Security Liability Defense

1. We shall have the right and the duty to assume

the defense of any applicable “network security

liability suit” against you. You shall give us

such information and cooperation as we may

reasonably require.

2. You shall not admit liability for or settle any

“network security liability suit” or incur any

defense costs without our prior written consent.

3. If you refuse to consent to any settlement

recommended by us and acceptable to the

claimant, we may then withdraw from your

defense by tendering control of the defense to

you. From that point forward, you shall, at your

own expense, negotiate or defend such

“network security liability suit” independently of

us. Our liability shall not exceed the amount for

which the claim or suit could have been settled

if such recommendation was consented to,

plus defense costs incurred by us, and defense

costs incurred by you with our written consent,

prior to the date of such refusal.

4. We shall not be obligated to pay any damages

or defense costs, or to defend or continue to

defend any “network security liability suit”, after

the Network Security Liability Limit has been

exhausted.

5. We shall pay all interest on that amount of any

judgment within the Network Security Liability

Limit which accrues:

a. After entry of judgment; and

b. Before we pay, offer to pay or deposit in

court that part of the judgment within the

Network Security Liability Limit or, in any

case, before we pay or offer to pay the

entire Network Security Liability Limit.

These interest payments shall be in addition to

and not part of the Network Security Liability Limit.

E. Other Data Coverage in This Policy

Some elements of this CyberOne coverage may

also be covered under the policy to which this

endorsement is attached. If so, this CyberOne

coverage will apply as excess, additional

coverage. If loss payment has been made under

the policy for the same event, the amount of such

payment will count towards the deductible that

applies to this CyberOne coverage.

F. Services

The following conditions apply as respects any

services provided to you by any service firm

provided or paid for in whole or in part under this

endorsement:

1. The effectiveness of such services depends on

your cooperation and assistance.

2. We do not warrant or guarantee that the

services will end or eliminate all problems

associated with the covered events.

DEFINITIONS

With respect to the provisions of this endorsement

only, the following definitions are added:

1. “Network Security Liability Defense Costs”

a. “Network security liability defense costs”

means reasonable and necessary expenses

resulting solely from the investigation,

defense and appeal of any “network security

liability suit” against you. Such expenses may

be incurred by us. Such expenses may

include premiums for any appeal bond,

attachment bond or similar bond. However,

we have no obligation to apply for or furnish

such bond.

b. “Network security liability defense costs” does

not mean your salaries or your loss of

earnings.

2. “Network Security Liability Settlement Costs”

a. “Network security liability settlement costs”

means the following, when they arise from a

“network security liability suit”:

1) Damages, judgments or settlements; and

2) Defense costs added to that part of any

judgment paid by us, when such defense

costs are awarded by law or court order;

and

3) Pre-judgment interest on that part of any

judgment paid by us.

b. “Network security liability settlement costs”

does not mean:

1) Civil or criminal fines or penalties

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imposed by law;

2) Punitive or exemplary damages;

3) The multiplied portion of multiplied

damages;

4) Taxes; or

5) Matters which may be deemed

uninsurable under the applicable law.

3. “Network Security Liability Suit”

a. “Network security liability suit” means a civil

proceeding against you in which damages are

alleged. Such proceeding must be brought in

the United States of America, Puerto Rico or

Canada. Such proceeding must be based on

an allegation that a negligent security failure

or weakness with respect to a computer or

other electronic hardware that is owned or

leased by you and operated under your

control allowed one or more of the following

to happen:

1) The unintended propagation or

forwarding of malware, including viruses,

worms, Trojans, spyware and keyloggers.

Malware does not include shortcomings

or mistakes in legitimate electronic code.

2) The unintended abetting of a denial of

service attack against one or more other

systems.

b. “Network security liability suit” includes the

following:

1) An arbitration or alternative dispute

resolution proceeding that you are

required to submit to or which we agree

you should submit to; or

2) A written demand for money, when such

demand could reasonably result in a civil

proceeding as described in this definition.

c. “Network security liability suit” does not mean

any demand or action alleging or arising from

property damage or bodily injury.

d. “Network security liability suit” does not mean

any demand or action brought by or on behalf

of someone who is:

1) Your director or officer;

2) Your owner or part-owner; or

3) A holder of your securities;

in their capacity as such, whether directly,

derivatively, or by class action.

All other provisions of this policy apply.

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COMMERCIAL PROPERTY

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

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DATA COMPROMISE COVERAGE

RESPONSE EXPENSES AND DEFENSE AND LIABILITY

Coverage under this endorsement is subject to the

following:

SECTION 1 – RESPONSE EXPENSES

Data Compromise

Response Expenses Limit: $50,000

 Annual Aggregate

Sublimits

 Named Malware (Sec. 1) $50,000

 Forensic IT Review: $5,000

 Legal Review: $5,000

 PR Services: $5,000

 Any one “Personal Data Compromise”

Response Expenses Deductible: $2,500

 Any one “Personal Data Compromise”

SECTION 2 – DEFENSE AND LIABILITY

Data Compromise

Defense and Liability Limit: $50,000

 Annual Aggregate

Sublimits

 Named Malware (Sec. 2) $50,000

 Any one “Personal Data Compromise”

Defense and Liability Deductible: $2,500

Each “Data Compromise Suit”

The following is added as an additional Coverage:

SECTION 1 – RESPONSE EXPENSES

DATA COMPROMISE COVERED CAUSE OF LOSS

Coverage under this Data Compromise Coverage

endorsement applies only if all of the following conditions

are met:

1. There has been a “personal data compromise”; and

2. Such “personal data compromise” is first discovered

by you during the policy period for which this Data

Compromise Coverage endorsement is applicable;

and

3. Such “personal data compromise” is reported to us

within 60 days after the date it is first discovered by

you.

COVERAGE – SECTION 1

If the three conditions listed above in DATA

COMPROMISE – COVERED CAUSE OF LOSS have

been met, then we will provide coverage for the following

expenses when they arise directly from the covered

cause of loss and are necessary and reasonable.

Coverages 4 and 5 apply only if there has been a

notification of the “personal data compromise” to

“affected individuals” as covered under coverage 3.

1. Forensic IT Review

Professional information technologies review if

needed to determine, within the constraints of what

is possible and reasonable, the nature and extent of

the “personal data compromise” and the number and

identities of the “affected individuals”.

This does not include costs to analyze, research or

determine any of the following:

a. Vulnerabilities in systems, procedures or

physical security;

b. Compliance with PCI or other industry security

standards; or

c. The nature or extent of loss or damage to data

that is not “personally identifying information” or

“personally sensitive information”.

If there is reasonable cause to suspect that a

covered “personal data compromise” may have

occurred, we will pay for costs covered under

Forensic IT Review, even if it is eventually

determined that there was no covered “personal

data compromise”. However, once it is determined

that there was no covered “personal data

compromise”, we will not pay for any further costs.

2. Legal Review

Professional legal counsel review of the “personal

data compromise” and how you should best respond

to it.

If there is reasonable cause to suspect that a

covered “personal data compromise” may have

occurred, we will pay for costs covered under Legal

Review, even if it is eventually determined that there

was no covered “personal data compromise”.

However, once it is determined that there was no

covered “personal data compromise”, we will not pay

for any further costs.

3. Notification to Affected Individuals

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We will pay your necessary and reasonable costs to

provide notification of the “personal data

compromise” to “affected individuals”.

4. Services to Affected Individuals

We will pay your necessary and reasonable costs to

provide the following services to “affected

individuals”.

a. The following services apply to any “personal

data compromise”.

1) Informational Materials

A packet of loss prevention and customer

support information.

2) Help Line

A toll-free telephone line for “affected

individuals” with questions about the

“personal data compromise”. Where

applicable, the line can also be used to

request additional services as listed in b. 1)

and 2).

b. The following additional services apply to

“personal data compromise” events involving

“personally identifying information”.

1) Credit Report and Monitoring

A credit report and an electronic service

automatically monitoring for activities

affecting an individual’s credit records. This

service is subject to the “affected individual”

enrolling for this service with the designated

service provider.

2) Identity Restoration Case Management

As respects any “affected individual” who is

or appears to be a victim of “identity theft”

that may reasonably have arisen from the

“personal data compromise”, the services of

an identity restoration professional who will

assist that “affected individual” through the

process of correcting credit and other

records and, within the constraints of what is

possible and reasonable, restoring control

over his or her personal identity.

5. PR Services

 Professional public relations firm review of and

response to the potential impact of the “personal

data compromise” on your business relationships.

 This includes costs to implement public relations

recommendations of such firm. This may include

advertising and special promotions designed to

retain your relationship with “affected individuals”.

However, we will not pay for promotions:

a. Provided to any of your directors or employees;

or;

b. Costing more than $25 per “affected individual”.

LIMITS – SECTION 1

The most we will pay under Response Expenses

coverage is the Data Compromise Response Expenses

Limit indicated for this endorsement.

The Data Compromise Response Expenses Limit is an

annual aggregate limit. This amount is the most we will

pay for the total of all loss covered under Section 1

arising out of all “personal data compromise” events

which are first discovered by you during the present

annual policy period. This limit applies regardless of the

number of “personal data compromise” events

discovered by you during that period.

A “personal data compromise” may be first discovered

by you in one policy period but cause covered costs in

one or more subsequent policy periods. If so, all covered

costs arising from such “personal data compromise” will

be subject to the Data Compromise Response Expenses

Limit applicable to the policy period when the “personal

data compromise” was first discovered by you.

The most we will pay under Response Expenses

coverage for loss arising from any “malware-related

compromise” is the Named Malware (Sec. 1) sublimit

indicated for this endorsement. For the purpose of the

Named Malware (Sec. 1) sublimit, all “malware-related

compromises” that are caused, enabled or abetted by

the same virus or other malicious code are considered to

be a single “personal data compromise”.

The most we will pay under Forensic IT Review, Legal

Review and PR Services coverages for loss arising from

any one “personal data compromise” is the applicable

sublimit for each of those coverages indicated for this

endorsement. These sublimits are part of, and not in

addition to, the Data Compromise Response Expenses

Limit. PR Services coverage is also subject to a limit per

“affected individual” as described in 5. PR Services.

Coverage for Services to “affected individuals” is limited

to costs to provide such services for a period of up to

one year from the date of the notification to the “affected

individuals”. Notwithstanding, coverage for Identity

Restoration Case Management services initiated within

such one year period may continue for a period of up to

one year from the date such Identity Restoration Case

Management services are initiated.

DEDUCTIBLE – SECTION 1

Response Expenses coverage is subject to the

Response Expenses Deductible indicated for this

endorsement. You shall be responsible for such

deductible amount as respects each “personal data

compromise” covered under this endorsement.

The following is added as an Additional Coverage:

SECTION 2 – DEFENSE AND LIABILITY

DEFENSE AND LIABILITY COVERED CAUSE OF

LOSS

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Coverage under this Data Compromise Coverage

endorsement applies only if all three of the conditions in

DATA COMPROMISE – COVERED CAUSE OF LOSS

are met.

Only with regard to Section 2 – Defense and Liability

coverage, the following conditions must also be met:

1. You have provided notifications and services to

“affected individuals” in consultation with us

pursuant to Response Expenses coverage; and

2. You receive notice of a “data compromise suit”

brought by one or more “affected individuals” or by a

governmental entity on behalf of one or more

“affected individuals”; and

3. Notice of such “data compromise suit” is received by

you within two years of the date that the “affected

individuals” are notified of the “personal data

compromise”; and

4. Such “data compromise suit” is reported to us as

soon as practicable, but in no event more than 60

days after the date it is first received by you.

COVERAGE – SECTION 2

If all of the conditions listed above in DEFENSE AND

LIABILITY – COVERED CAUSE OF LOSS have been

met, then we will provide coverage for “data compromise

defense costs” and “data compromise liability” directly

arising from the covered cause of loss.

LIMITS – SECTION 2

The most we will pay under Defense and Liability

coverage (other than post-judgment interest) is the Data

Compromise Defense and Liability Limit indicated for this

endorsement.

The Data Compromise Defense and Liability Limit is an

annual aggregate limit. This amount is the most we will

pay for all loss covered under Section 2 (other than postjudgment interest) arising out of all “personal data

compromise” events which are first discovered by you

during the present annual policy period. This limit applies

regardless of the number of “personal data compromise”

events discovered by you during that period.

A “personal data compromise” may be first discovered

by you in one policy period but cause covered costs in

one or more subsequent policy periods. If so, all covered

costs arising from such “personal data compromise”

(other than post-judgment interest) will be subject to the

Data Compromise Defense and Liability Limit applicable

to the policy period when the “personal data

compromise” was first discovered by you.

The most we will pay under Defense and Liability

coverage for loss arising from any “malware-related

compromise” is the Named Malware (Sec. 2) sublimit

indicated for this endorsement. For the purpose of the

Named Malware (Sec. 2) sublimit, all “malware-related

compromises” that are caused, enabled or abetted by

the same virus or other malicious code are considered to

be a single “personal data compromise”. This sublimit is

part of, and not in addition to, the Defense and Liability

Limit.

DEDUCTIBLE – SECTION 2

Defense and Liability coverage is subject to the Defense

and Liability Deductible indicated for this endorsement.

You shall be responsible for such deductible amount as

respects each “data compromise suit” covered under this

endorsement.

EXCLUSIONS, ADDITIONAL CONDITIONS

AND DEFINITIONS APPLICABLE TO BOTH

SECTION 1 AND SECTION 2

EXCLUSIONS

The following additional exclusions apply to this

coverage:

We will not pay for costs arising from the following:

 1. Your intentional or willful complicity in a “personal

data compromise”.

2. Any criminal, fraudulent or dishonest act, error or

omission, or any intentional or knowing violation of

the law by you.

 3. Any “personal data compromise” occurring prior to

the first inception of this Data Compromise Coverage

endorsement or any coverage substantially similar to

that described in this endorsement.

 4. Costs to research or correct any deficiency. This

includes, but is not limited to, any deficiency in your

systems, procedures or physical security that may

have contributed to a “personal data compromise”.

 5. Any fines or penalties. This includes, but is not

limited to, fees or surcharges from affected financial

institutions.

6. Any criminal investigations or proceedings.

7. Any extortion or blackmail. This includes, but is not

limited to, ransom payments and private security

assistance.

8. Any “personal data compromise” involving data that

is being transmitted electronically, unless such data

is encrypted to protect the security of the

transmission.

9. Your reckless disregard for the security of “personally

identifying information” or “personally sensitive

information” in your care, custody or control.

10. That part of any “data compromise suit” seeking any

non-monetary relief.

ADDITIONAL CONDITIONS

The following Additional Conditions apply to all

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coverages under this endorsement.

A. Data Compromise Liability Defense

1. We shall have the right and the duty to assume

the defense of any applicable “data compromise

suit” against you. You shall give us such

information and cooperation as we may

reasonably require.

2. You shall not admit liability for or settle any “data

compromise suit” or incur any defense costs

without our prior written consent.

3. If you refuse to consent to any settlement

recommended by us and acceptable to the

claimant, we may then withdraw from your

defense by tendering control of the defense to

you. From that point forward, you shall, at your

own expense, negotiate or defend such “data

compromise suit” independently of us. Our liability

shall not exceed the amount for which the claim

or suit could have been settled if such

recommendation was consented to, plus defense

costs incurred by us, and defense costs incurred

by you with our written consent, prior to the date

of such refusal.

4. We shall not be obligated to pay any damages or

defense costs, or to defend or continue to defend

any “data compromise suit”, after the Data

Compromise Defense and Liability Limit has been

exhausted.

5. We shall pay all interest on that amount of any

judgment within the Data Compromise Defense

and Liability Limit which accrues:

a. after entry of judgment; and

b. before we pay, offer to pay or deposit in court

that part of the judgment within the Data

Compromise Defense and Liability Limit or,

in any case, before we pay or offer to pay the

entire Data Compromise Defense and

Liability Limit.

 These interest payments shall be in addition to

and not part of the Data Compromise Defense

and Liability Limit.

B. Duties in the Event of a “Data Compromise Suit”

1. If a “data compromise suit” is brought against

you, you must:

a. Immediately record the specifics of the “data

compromise suit” and the date received; and

b. Provide us with written notice, as soon as

practicable, but in no event more than 60

days after the date the “data compromise

suit” is first received by you.

c. Immediately send us copies of any

demands, notices, summonses or legal

papers received in connection with the “data

compromise suit”;

d. Authorize us to obtain records and other

information;

e. Cooperate with us in the investigation,

settlement or defense of the “data

compromise suit”;

f. Assist us, upon our request, in the

enforcement of any right against any person

or organization which may be liable to you

because of loss to which this insurance may

also apply; and

g. Not take any action, or fail to take any

required action, that prejudices your rights or

our rights with respect to such “data

compromise suit”.

2. You may not, except at your own cost,

voluntarily make a payment, assume any

obligation, or incur any expense without our prior

written consent.

3. If you become aware of a claim or complaint that

may become a “data compromise suit”, you shall

promptly inform us of such claim or complaint.

C. Due Diligence

You agree to use due diligence to prevent and

mitigate costs covered under this endorsement. This

includes, but is not limited to, complying with, and

requiring your vendors to comply with, reasonable

and industry-accepted protocols for:

1. Providing and maintaining appropriate physical

security for your premises, computer systems and

hard copy files;

2. Providing and maintaining appropriate computer

and Internet security;

3. Maintaining and updating at appropriate intervals

backups of computer data;

4. Protecting transactions, such as processing credit

card, debit card and check payments; and

5. Appropriate disposal of files containing

“personally identifying information” or “personally

sensitive information”, including shredding hard

copy files and destroying physical media used to

store electronic data.

D. Legal Advice

We are not your legal advisor. Our determination of

what is or is not covered under this Data

Compromise Coverage endorsement does not

represent advice or counsel from us about what you

should or should not do.

E. Pre-Notification Consultation

You agree to consult with us prior to the issuance of

notification to “affected individuals”. We assume no

responsibility under this Data Compromise Coverage

for any services promised to “affected individuals”

without our prior agreement. If possible, this prenotification consultation will also include the

designated service provider(s) as agreed to under

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Additional Condition F. Service Providers. You must

provide the following at our pre-notification

consultation with you:

1. The exact list of “affected individuals” to be

notified, including contact information.

2. Information about the “personal data compromise”

that may appropriately be communicated with

“affected individuals”.

3. The scope of services that you desire for the

“affected individuals”. For example, coverage may

be structured to provide fewer services in order to

make those services available to more “affected

individuals” without exceeding the available

Response Expenses Limit.

F. Service Providers

1. We will only pay under this Data Compromise

Coverage for services that are provided by

service providers approved by us. You must

obtain our prior approval for any service provider

whose expenses you want covered under this

Data Compromise Coverage. We will not

unreasonably withhold such approval.

2. Prior to the Pre-Notification Consultation

described in Additional Condition E. above, you

must come to agreement with us regarding the

service provider(s) to be used for the Notification

to Affected Individuals and Services to Affected

Individuals. We will suggest a service provider. If

you prefer to use an alternate service provider,

our coverage is subject to the following

limitations:

a. Such alternate service provider must be

approved by us;

b. Such alternate service provider must provide

services that are reasonably equivalent or superior in both kind and quality to the services

that would have been provided by the service

provider we had suggested; and

c. Our payment for services provided by any

alternate service provider will not exceed the

amount that we would have paid using the

service provider we had suggested.

G. Services

The following conditions apply as respects any

services provided to you or any “affected individual”

by us, our designees or any service firm paid for in

whole or in part under this Data Compromise

coverage:

1. The effectiveness of such services depends on

your cooperation and assistance.

2. All services may not be available or applicable to

all individuals. For example, “affected individuals”

who are minors or foreign nationals may not have

credit records that can be provided or monitored.

Service in Canada will be different from service in

the United States and Puerto Rico in accordance

with local conditions.

3. We do not warrant or guarantee that the services

will end or eliminate all problems associated with

the covered events.

4. You will have a direct relationship with the

professional service firms paid for in whole or in

part under this coverage. Those firms work for

you.

DEFINITIONS

With respect to the provisions of this endorsement only,

the following definitions are added:

1. "Affected Individual" means any person who is your

current, former or prospective customer, client,

member, owner, director or employee and whose

“personally identifying information” or “personally

sensitive information” is lost, stolen, accidentally

released or accidentally published by a “personal

data compromise” covered under this endorsement.

This definition is subject to the following provisions:

a. “Affected individual” does not include any

business or organization. Only an individual

person may be an “affected individual”.

b. An “affected individual” must have a direct

relationship with your interests as insured under

this policy. The following are examples of

individuals who would not meet this requirement:

1) If you aggregate or sell information about

individuals as part of your business, the

individuals about whom you keep such

information do not qualify as “affected

individuals”. However, specific individuals

may qualify as “affected individuals” for

another reason, such as being an employee

of yours.

2) If you store, process, transmit or transport

records, the individuals whose “personally

identifying information” or “personally

sensitive information” you are storing,

processing, transmitting or transporting for

another entity do not qualify as “affected

individuals”. However, specific individuals

may qualify as “affected individuals” for

another reason, such as being an employee

of yours.

3) You may have operations, interests or

properties that are not insured under this

policy. Individuals who have a relationship

with you through such other operations,

interests or properties do not qualify as

"affected individuals”. However, specific

individuals may qualify as “affected

individuals” for another reason, such as

being an employee of the operation insured

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under this policy.

c. An “affected individual” may reside anywhere in

the world.

2. "Data Compromise Defense Costs" means expenses

resulting solely from the investigation, defense and

appeal of any “data compromise suit” against you.

Such expenses must be reasonable and necessary.

They will be incurred by us. They do not include your

salaries or your loss of earnings. They do include

premiums for any appeal bond, attachment bond or

similar bond, but without any obligation to apply for or

furnish any such bond.

3. "Data Compromise Liability"

a. “Data compromise liability” means the following,

when they arise from a “data compromise suit”:

1) Damages, judgments or settlements to

“affected individuals”;

2) Defense costs added to that part of any

judgment paid by us, when such defense

costs are awarded by law or court order; and

3) Pre-judgment interest on that part of any

judgment paid by us.

b. “Data compromise liability” does not mean:

1) Damages, judgments or settlements to

anyone who is not an “affected individual”;

2) Civil or criminal fines or penalties imposed by

law;

3) Punitive or exemplary damages;

4) The multiplied portion of multiplied damages;

5) Taxes; or

6) Matters which may be deemed uninsurable

under the applicable law.

4. "Data Compromise Suit"

a. “Data Compromise Suit” means a civil

proceeding in which damages to one or more

“affected individuals” arising from a “personal

data compromise” or the violation of a

governmental statute or regulation are alleged.

Such proceeding must be brought in the United

States of America, Puerto Rico or Canada. "Data

compromise suit" includes:

1) An arbitration proceeding in which such

damages are claimed and to which you must

submit or do submit with our consent;

2) Any other alternative dispute resolution

proceeding in which such damages are

claimed and to which you submit with our

consent; or

3) A written demand for money, when such

demand could reasonably result in a civil

proceeding as described in this definition.

b. “Data compromise suit” does not mean any

demand or action brought by or on behalf of

someone who is:

1) Your director or officer;

2) Your owner or part-owner; or

3) A holder of your securities;

 in their capacity as such, whether directly,

derivatively, or by class action. “Data

compromise suit” will include proceedings

brought by such individuals in their capacity as

“affected individuals”, but only to the extent that

the damages claimed are the same as would

apply to any other “affected individual”.

c. “Data compromise suit” does not mean any

demand or action brought by or on behalf of an

organization, business, institution or any other

party that is not an “affected individual” or

governmental entity.

5. “Identity Theft” means the fraudulent use of

“personally identifying information”. This includes

fraudulently using such information to establish credit

accounts, secure loans, enter into contracts or

commit crimes.

 “Identity theft” does not include the fraudulent use of

a business name, d/b/a or any other method of

identifying a business activity.

6. “Malware-Related Compromise” means a “personal

data compromise” that is caused, enabled or abetted

by a virus or other malicious code that, at the time of

the “personal data compromise”, is named and

recognized by the CERT® Coordination Center,

McAfee®, Secunia, Symantec or other comparable

third party monitors of malicious code activity.

7. “Personal Data Compromise” means the loss, theft,

accidental release or accidental publication of

“personally identifying information” or “personally

sensitive information” as respects one or more

“affected individuals”. If the loss, theft, accidental

release or accidental publication involves “personally

identifying information”, such loss, theft, accidental

release or accidental publication must result in or

have the reasonable possibility of resulting in the

fraudulent use of such information. This definition is

subject to the following provisions:

a. At the time of the loss, theft, accidental release

or accidental publication, the “personally

identifying information” or “personally sensitive

information” need not be at the insured premises

but must be in the direct care, custody or control

of:

1) You; or

2) A professional entity with which you have a

direct relationship and to which you (or an

“affected individual” at your direction) have

turned over (directly or via a professional

transmission or transportation provider) such

information for storage, processing,

transmission or transportation of such

information.

b. “Personal data compromise” includes disposal

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or abandonment of “personally identifying

information” or “personally sensitive information”

without appropriate safeguards such as

shredding or destruction, subject to the following

provisions:

1) The failure to use appropriate safeguards

must be accidental and not reckless or

deliberate; and

2) Such disposal or abandonment must take

place during the time period for which this

Data Compromise Coverage endorsement is

effective.

c. “Personal data compromise” includes situations

where there is a reasonable cause to suspect

that such “personally identifying information” or

“personally sensitive information” has been lost,

stolen, accidentally released or accidentally

published, even if there is no firm proof.

d. All incidents of “personal data compromise” that

are discovered at the same time or arise from

the same cause will be considered one

“personal data compromise”.

8. “Personally Identifying Information” means

information, including health information, that could

be used to commit fraud or other illegal activity

involving the credit, access to health care or identity

of an “affected individual”. This includes, but is not

limited to, Social Security numbers or account

numbers.

“Personally identifying information” does not mean

or include information that is otherwise available to

the public, such as names and addresses.

9. “Personally Sensitive Information” means private

information specific to an individual the release of

which requires notification of “affected individuals”

under any applicable law.

“Personally sensitive information” does not mean or

include “personally identifying information”.

All other provisions of this policy apply.

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