Redondo Beach City Council
September 19, 2023

Effective Date:

Insured Name:

Copyright CNA All Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission.

SB300139C
(Ed. 4-14)

2. The protective safeguards to which this endorsement applies are identified by the following symbols:
a. "P-1" Automatic Sprinkler System, including related supervisory services.

Automatic Sprinkler System means:
(1) Any automatic fire protective or extinguishing system, including connected:
(a) Sprinklers and discharge nozzles;
(b) Ducts, pipes, valves and fittings;
(c) Tanks, their component parts and supports; and
(d) Pumps and private fire protection mains.
(2) When supplied from an automatic fire protective system:
(a) Non-automatic fire protective systems; and
(b) Hydrants, standpipes and outlets.
b. "P-2" Automatic Fire Alarm, protecting the entire building, that is:
(1) Connected to a central station; or
(2) Reporting to a public or private fire alarm station. c. "P-3" Security Service, with a recording system or watch clock, making hourly rounds covering the entire building, when the premises are not in actual operation. d. "P-4" Service Contract, with a privately owned fire department providing fire protection service to the described premises.
e. "P-5" Automatic Commercial Cooking Exhaust and Extinguishing System, installed on cooking appliances and having the following components:
(1) Hood;
(2) Grease removal device;
(3) Duct system; and
(4) Wet chemical fire extinguishing equipment.
f. "P-9" The protective system described in the Schedule.

B. The following is added to the EXCLUSIONS section of the BUSINESSOWNERS SPECIAL PROPERTY COVERAGE FORM:

We will not pay for loss or damages caused by or resulting from fire if, prior to the fire, you:

1. Knew of any suspension or impairment in any protective safeguard listed in the Schedule above and failed to notify us of that fact; or

2. Failed to maintain any protective safeguard listed in the Schedule above, and over which you had control, in complete working order.

If part of an Automatic Sprinkler System is shut off due to breakage, leakage, freezing conditions or opening of sprinkler heads, notification to us will not be necessary if you can restore full protection within 48 hours.

All other terms and conditions of the Policy remain unchanged.

This endorsement, which forms a part of and is for attachment to the Policy issued by the designated Insurers, takes effect on the effective date of said Policy at the hour stated in said Policy, unless another effective date is shown below, and expires concurrently with said Policy.

SB300139C (Ed. 4-14) Policy No:

Effective Date:

Insured Name:

Copyright CNA All Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. 10020006070384118608029
SB-300441-A
(Ed. 01/07)

FIDUCIARY LIABILITY COVERAGE FORM
THIS IS A CLAIMS MADE COVERAGE FORM. PLEASE READ ALL PROVISIONS AND CONTACT YOUR AGENT IF YOU HAVE ANY QUESTIONS. THIS INSURANCE APPLIES ONLY TO "WRONGFUL ACTS" THAT OCCUR BETWEEN THE RETROACTIVE DATE AND THE END OF THE "POLICY PERIOD." THIS INSURANCE APPLIES ONLY TO "CLAIMS" FIRST MADE AGAINST THE INSURED AFTER THE INCEPTION DATE AND BEFORE THE END OF THE "POLICY PERIOD" OR ANY APPLICABLE EXTENDED REPORTING PERIOD AND REPORTED TO US IN ACCORDANCE WITH THE PROVISIONS OF THIS FORM. UPON TERMINATION OF YOUR POLICY AN AUTOMATIC

EXTENDED REPORTING PERIOD WILL BE PROVIDED, AND A SUPPLEMENTAL EXTENDED REPORTING PERIOD WILL BE AVAILABLE.

Various provisions in this Coverage Form restrict coverage. Read the entire Coverage Form carefully to determine rights, duties and what is and is not covered.

Throughout this Coverage Form the terms "you" and "your" refer to the Named Insured shown in the Declarations, and any other person or organization qualifying as a Named Insured under this policy." The terms "we," "us" and "our" refer to the Stock Insurance Company named on the Declarations providing this insurance.

The word "insured" means any person or organization qualifying as such under Section II – Who Is An Insured.

Other words and phrases that appear in quotation marks have special meaning. Refer to Section III – Definitions.

SECTION for under paragraph 1.D. – Supplementary I – INSURING AGREEMENTS Payments
A. Coverage
B. Defense
We will pay those sums in excess of the deductible
We have the right and duty to defend all "suits," even and subject to the limits of liability that the Insured if the allegations are groundless, false or fraudulent. becomes legally obligated to pay as "damages" We shall have the right to appoint counsel and to because of a claim resulting from a "wrongful act" make such investigation and defense of a "suit" as we provided:
deem necessary. Alternatively we may, at our option,

1. The "wrongful act" takes place in the "coverage give our written consent to the defense of any such territory"; "suit" to the insured. Our obligation to defend any "suit" or pay any "damages" and "defense expenses" 2. The "wrongful act" did not occur before the for any "claim" shall be completely fulfilled and Retroactive Date, if any, shown in the extinguished if the limit of insurance has been Declarations nor after the end of the "policy exhausted by payment of "damages" or "defense period"; and expenses."

3. A "claim" arising out of a "wrongful act" is first C. Consent To Settle made against an insured, during the "policy period" or Extended Reporting Period, if We shall not settle a "claim" without your written applicable and is reported to us in accordance consent . If you refuse to consent to a settlement or with Section VIII, Conditions, paragraph C, Duties compromise recommended by us, and acceptable to in the event of a "Claim"; and the claimant, then the applicable limit of insurance under this Coverage Form shall be reduced to the 4. Prior to the inception date of this Coverage Form: amount for which the "claim" could have been settled a. The Insured did not give notice to a prior plus all "defense expenses" incurred up to the time insurer of a "related claim"; we made our recommendation. b. The Insured did not give notice to a prior D. Supplementary Payments insurer of any such "wrongful act" or We will pay, with respect to any "claim" or "suit" we "interrelated wrongful act." investigate or settle, or any "suit" against an insured No other obligation or liability to pay sums or perform we defend all "defense expenses." These payments acts or services is covered unless explicitly provided
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are included within and reduce the Limits of "suit" on the merits brought in the territory Insurance. described in Paragraph 1. above or in a
settlement of a "claim" that we agree to. SECTION II – WHO IS AN INSURED C. "Damages" means sums, settlements, judgments A. If you are designated in the Declarations as: (including any award of pre-judgment and post1. A partnership or joint venture, you are an insured. judgment interest) for which you are legally obligated Your partners or members are also insureds. to pay on account of a covered "claim." "Damages" shall not include:

2. A limited liability company, you are an insured.

Your members and managers are also insureds. 1. Any taxes, sanctions, criminal or civil fines, or penalties imposed by law other than:

3. An organization other than a partnership, joint
venture or a. The five percent or less or the twenty percent limited liability company, you are an insured. Your directors, officers and trustees are or less penalty imposed upon an insured as a also Fiduciary under Section 502(i) or 502(l) of insureds.

ERISA;
B. Your "plans" and their employees, directors, officers and trustees are also insureds. b. Those civil fines or penalties imposed under 42 USC 1320d-5(a) the Health Insurance
D. Your employees are also insureds, unless otherwise Portability and Accountability Act of 1996 excluded in this policy. provided however that our maximum limit of E. Any insurance for all such fines and penalties organization you newly acquire or form, other shall be $10,000 in the aggregate, regardless than a partnership, joint venture or limited liability of the number of "claims" made or Insureds company, and over which you maintain ownership or majority covered under this Coverage Form. This interest, will qualify as a Named Insured if no sublimit of insurance is part of and not in other similar insurance applies to that organization.

You must addition to the limit of insurance set forth on notify us of such acquisition or formation as the Declarations. soon as practicable. However, coverage under this provision: 2. Any amount for which an "insured person" is

1. absolved from payment by reason of any Is afforded only until the 90th day after you covenant, agreement or court order; acquire or form the organization, or until the end of the "policy period," whichever is earlier; and 3. Any matters deemed uninsurable under the law

2. Does pursuant to which this Policy is construed. not apply to an offense committed before you acquired or formed the organization. Notwithstanding anything to the contrary above, No "damages" shall include punitive or exemplary person or organization is an insured with respect to the damages, if insurable, to the fullest extent permitted conduct of any current or past partnership, joint venture or by any applicable law. Where you reasonably limited liability company that is not shown as a Named determine that punitive, exemplary or multiple Insured in the Declarations. damages are insurable under any applicable law, we
SECTION III – DEFINITIONS shall not challenge that determination of insurability.

The following defined words shall have D. "Defense expenses" means all fees charged by the same meaning throughout this Coverage attorneys designated by us, or by you, with our written Form, whether expressed in the singular consent and all other reasonable and necessary fees, or the plural. costs and expenses resulting from the investigation, adjustment, defense and appeal of a "claim" if
incurred by us or you with our written consent,
A. "Claim" means: including the costs of appeal, attachment or similar bonds. We have no obligation to provide such bonds. 1. A "suit"; or "Defense Expenses" shall not include salaries,

2. A written demand for monetary or non-monetary wages, fees, overhead or benefit expenses damages made against an insured, arising out of associated with the directors, officers, and employees a "wrongful act," of yours.

B. "Coverage territory" means: E. "Domestic Partner" means any person qualifying as such under any federal, state or local laws or under 1. The United States of America (including its your employee benefit plans. territories or possessions) and Puerto Rico; or
F. "ERISA or any Similar Act" means the Employee 2. All parts of the world if the "insured's" Retirement Income Security Act of 1974, as responsibility to pay "damages" is determined in a
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amended, or any similar common or statutory law of identified on any list of hazardous substances issued the United States, Canada or their states, territories or by the United States Environmental Protection provinces or any other jurisdiction anywhere in the Agency or any state or local or foreign counterpart. world. "Pollutants" also means, without limitation, any solid, liquid, gaseous or thermal irritant or contaminant, G. "Executive officer" means your chairperson, chief including smoke, vapor, soot, fumes, acids, alkalis, executive officer, president, chief financial officer and chemicals or waste (including materials to be in-house general counsel; recycled, reconditioned or reclaimed), as well as any H. "Insured Persons" means all of air emission, odor, waste water, oil or oil products, those natural person insureds who are your partners, trustees, members, infectious or medical waste, asbestos, or asbestos managers, "executive officers," directors and products or any noise. employees O. "Related claims" mean all claims arising out of a I. "Interrelated Wrongful Acts" means any "wrongful single "wrongful act" or arising out of "interrrelated acts" which are logically or causally connected by wrongful acts." reason of any common fact, circumstance, situation, P. "Suit" means a formal civil, criminal, administrative, transaction or event. or regulatory proceeding or investigation or an J "Pension Plan" means any employee pension arbitration against an "insured," including any appeal benefit plan as defined therefrom. in 29 U.S.C. §1002 subject to regulation under "ERISA or any Similar Act." "Pension Q. "Wrongful act" means any actual or alleged error, plan" shall not include an excess benefit plan as misstatement, misleading statement, act, omission, defined in 29 U.S.C. §1002 or an employee stock neglect or breach of duty by the insureds in the ownership plan as defined in 26 U.S.C. §4975. discharge of their duties in their capacities, or solely K. "Plan" means: by reason of their status as fiduciaries or administrators (as defined in "ERISA or any similar
a. Any "welfare plan" which was, is now, or act") of any "plan," including, without limitation:
hereafter becomes, sponsored solely by you, or
sponsored jointly by you and a labor organization, (i) Counseling employees, beneficiaries or "plan" solely participants with respect to any "plans"; for the benefit of your employees; b. Any "pension plan" which was, on or prior to the (ii) Providing interpretations with respect to any effective date of "plan"; this Policy, sponsored solely by you, or sponsored jointly by you and a labor (iii) Handling records in connection with any "plan"; organization, solely for the benefit of your employees; (iv) Enrolling, terminating or canceling employees under any "plan"; or
c. Any "pension plan" which, after the effective date
of this Policy, becomes sponsored solely by you, (v) Otherwise performing or failing to perform "ERISA or jointly by you and a labor organization, solely or any similar act" obligations relating to any for the benefit of your employees, if and to the "plan." extent coverage with respect such "pension plan" SECTION IV– EXTENDED REPORTING PERIOD is afforded pursuant to Section XIV.1 of the General Terms & Conditions of this Policy; or A. If the first Named Insured cancels or non-renews this Coverage Form or if we decide not to offer any d. Any government-mandated insurance for workers' renewal terms for this Coverage Form, the first compensation, unemployment, social security or Named Insured shall have the right to purchase, upon disability benefits for employees of Named payment of an additional premium not to exceed Company or any Subsidiary. 200% of the annual premium for this coverage, an L. "Welfare Plan" means any employee welfare benefit extension of this Coverage Form for a period of 12 plan as defined in 29 U.S.C. §1002 subject to months immediately following the end of the "policy regulation under ERISA or any Similar Act. Welfare period," but only with respect to any "wrongful act" Plan shall not include an excess benefit plan as committed before the earlier of the end of the "policy defined in 29 U.S.C. §1002. period";
M. "Policy Period" means the period from the effective This period shall be referred to as the Extended date of this Coverage Form to the expiration date Reporting Period. stated on the Declarations, or its earlier cancellation B. As a condition precedent to the right to purchase the date. Extended Reporting Period, the total premium for this N. "Pollutants" means any substance exhibiting Coverage Form must have been paid. The right to hazardous characteristics as, is or may be defined or purchase the Extended Reporting Period shall end SB-300441-A Page 3 of 6
(Ed. 01/07)
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(Ed. 01/07)
unless we receive written notice and full payment of 4. Prior Wrongful Acts of Subsidiaries the premium for such period within 30 days after the For: end of the "policy period." (a) Any "wrongful act" by an insured of any of C. If the Extended Reporting Period is purchased, the your subsidiaries, or by such subsidiary entire premium shall be deemed fully earned at its occurring before the date such entity became commencement without any obligation by us to return a subsidiary, or any portion thereof.
(b) Any other "wrongful act," whenever D. There is no separate or additional limit of insurance occurring, which, together with a "wrongful for the Extended Reporting Period. act" described in (a) above, would constitute SECTION V- LIMIT OF INSURANCE "interrelated wrongful acts." Your rights and ours are stated in the attached Single 5. Assumed Liability Limit of Insurance Endorsement For Employment Based upon, directly or indirectly arising out of or Practices/Fiduciary Liability Coverage Forms in any way involving the insured's assumption of SECTION VI - EXCLUSIONS the liability of others in any oral or written contract or agreement, unless such liability would have A. Exclusions Applicable to Damages and Defense attached to an Insured in the absence of such Expenses agreement.

We will not be liable to pay any "damages" or B. Exclusions Applicable to Non-Monetary Relief "defense expenses" under this Coverage Form in connection with any "claim" made against an insured: We will not be liable to pay any "damages" under this Coverage Form that represent: 1. Bodily Injury/Property Damage

1. The return or reversion to you of any contribution For any actual or alleged bodily injury (including or asset of any "plan"; death), sickness, disease of any person, or damage to or destruction of any tangible property 2. Any costs incurred by an insured to comply with including loss of use; any order for remedial, preventive, injunctive or other non-monetary relief, or to comply with an 2. Violation of Law agreement to provide such relief; For any actual or alleged violation of any law 3. Benefits due or to become due under any "plan," governing workers' compensation, unemployment or benefits which would be due under any "plan" insurance, social security, disability benefits or if such "plan" complied with all applicable law, any other similar federal, state or local statutory except to the extent that:
or regulatory law or common law anywhere in the
world except the Consolidated Omnibus Budget i. An "insured person" is legally obligated to Reconciliation Act of 1985 or the Health pay such benefits as a personal obligation, Insurance Portability and Accountability Act of and
1996 or any amendments to such laws or any ii. Recovery for the benefits is based upon a rules or regulations promulgated under such covered "wrongful act"; or laws.

4. An employer's contributions owed to a "plan" and 3. Pollution other amounts for which the insureds are legally Based upon, directly or indirectly arising out of or obligated to pay by reason of the failure to collect in any way involving: any nuclear reaction, such contributions. radiation or contamination, or any actual, alleged SECTION VII – CONDITIONS or threatened discharge, release, escape, or disposal of, or exposure to, "pollutants"; any A. Bankruptcy request, direction or order that any of the
Bankruptcy or insolvency of the insured or of the insureds test for, monitor, clean up, remove, "insured's" estate will not relieve us of our obligations contain, treat, detoxify, neutralize or in any way under this policy. respond to or assess the effect of "pollutants" or nuclear reaction, radiation or contamination, or B. Duties In The Event Of A "Claim" any voluntary decision to do so; or any actual or
alleged property damage, or bodily injury, 1. If, during the "policy period' or any Extended sickness, disease or death of any person Reporting Period, if applicable, any "claim" is first resulting from any of the aforementioned matters. made against the "insured," the insured shall, as a condition precedent to our obligations under
this Coverage Form, give us written notice as
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soon as practicable but in no event later than 2. In the case of an investigation, on the earliest of ninety (90) days after the end of the "policy the date of service upon or other receipt by the period" or the Extended Reporting Period, if insured of a written notice or subpoena from the applicable. investigating authority identifying such "insured person" as an individual against whom a formal 2. You must: proceeding may be commenced; a. Immediately send us copies of any demands, 3. In the case of a written demand for monetary notices, summonses or legal papers received damages or non monetary relief, upon the in connection with the "claim"; insured's receipt of such written demand. b. Authorize us to obtain records and other E. Other Insurance information; and The Other Insurance clause, Section H. of the
c. Cooperate with us in the investigation or Common Policy Conditions is deleted and replaced settlement of the "claim" or defense of the with the following: "suit." If any "damages" and "defense expenses" resulting 3. No insured shall voluntarily make a payment, from any "claim" are insured under any other policies, assume any obligation, or incur any expense this Coverage Form shall apply only to the extent the without our written consent. "damages" and "defense expenses" exceed the C. Duties in the Event of A "Wrongful Act" That May amount paid under such other insurance, whether Result In A "Claim" such other insurance is stated to be primary, contributory, excess, contingent or otherwise, unless
If, during the "policy period," you first become aware such other insurance is written only as specific of a specific "wrongful act" which may reasonably excess insurance over this Coverage Form. give rise to a future "claim," and during the "policy
period" give written notice to us of: F. Section IV. Estates, Legal Representatives and Spouses/Domestic Partners

1. The names of any potential claimants and a
description of the "wrongful act" which forms the Section L. of the Common Policy Conditions, Transfer basis of their potential "claim"; Of Your Rights And Duties Under This Policy, is deleted in its entirety and replaced as follows:

2. The identity of the specific insureds allegedly
responsible The estates, heirs, legal representatives, assigns, for such specific "wrongful act"; spouses and any "domestic partner" of "insured

3. The consequences which have resulted or may persons" shall be considered insureds under this result from such specific "wrongful act"; Coverage Form; provided, however, coverage is

4. The afforded to such estates, heirs, legal representatives, nature of the potential monetary damages which may assigns and spouses only for a "claim "arising solely be sought in consequence of such out of their status as such and, in the case of a specific "wrongful act"; and spouse or "domestic partner," where such "claim"

5. The circumstances by which you first became seeks damages from marital community property, aware of such specific "wrongful act"; jointly held property or property transferred from the "insured person" to the spouse or "domestic partner." Then any "claim" otherwise covered pursuant to this No coverage is provided for any act, error or omission Coverage Form which is subsequently made and of an estate, heir, legal representative, assign, spouse which arises out of such "wrongful act" shall be or "domestic partner." All terms and conditions of this deemed to have been first made and reported to us Coverage Form, including without limitation the by you at the time we received such written notice. No deductible applicable to "damages" and "defense coverage is provided for fees and expenses incurred expenses" incurred by the "insured person" shall also prior to the time such notice results in a "claim." apply to "damages" and "defense expenses" incurred D. When a "Claim" is Deemed Made by such estates, heirs, legal representatives, assigns, spouses and "domestic partners." A "claim" shall be deemed made:

G. No Action Against Us 1. In the case of a civil, criminal, administrative or regulatory proceeding or arbitration, on the 1. No action shall be taken against us unless, as a earliest of the date of service upon or other condition precedent, there shall have been full receipt by the insured of a complaint, indictment, compliance with all the provisions of this notice of charge or similar document against the Coverage Form nor until the amount of your insured in such proceeding or arbitration; obligation to pay shall have been finally determined either by final and nonappealable
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judgment against you after trial or by written completed, provided you are cooperating in agreement by you, the claimant and us. completing such transfer.

2. No person or organization shall have any right 3. Upon receipt of such notice, you, must:
under this Coverage Form to join us a party to
a. Cooperate in the transfer of control of any "suit" against you to determine your liability, "claims"; and nor shall we be impleaded by you or your legal representatives in any such "suit." b. Arrange for the defense of such "claim" within such time period as agreed to between you H. Transfer Of Rights Of Recovery Against Others To and us. Arrangements for the defense of Us such "claim" must be made as soon as If the insured has rights to recover all or part of any practicable. payment we have made under this Coverage Form 4. We will take no action with respect to defense for those rights are transferred to us. The insured must any "claim" if such "claim" is reported to us after do nothing after a "claim" is made to impair them. At the applicable limit of insurance is exhausted. It our request, the insured will bring "suit" or transfer becomes the your responsibility to arrange those rights to us and help us enforce them. defense for such "claim." In no event shall the insured be entitled to recoup 5. You will reimburse us as soon as practicable for from recoveries any amount to satisfy any deductible expenses we incur in taking those steps we deem until after all amounts which we are required to pay or appropriate in accordance with Paragraph 2. do pay under this Coverage Form are reimbursed to above. us.

6. The exhaustion of the applicable limit of I. Transfer Of Duties When Limit Of Insurance Is insurance and the resulting end of our duty to Exhausted defend will not be affected by our failure to

1. If we conclude that, based on "claims" which comply with any of the provisions of this have been reported to us and to which this Condition.
insurance may apply, the limit of insurance is J. Named Insured Authorization likely to be exhausted in the payment of "damages" or "defense expenses," we will notify The insureds agree that the first named insured will the first named insured, in writing, to that effect; act on behalf of all insureds with respect to giving of all notice to us (except notices provided in Section VII. 2. When the limit of insurance has actually been Paragraph B and C), the receipt of notices from us, exhausted by payments of "damages" or the payment of the premiums, the receipt of any "defense expenses," we will: return premiums that may become due under this a. Notify the first "named insured" in writing, as Coverage Form, and the acceptance of soon as practicable, that such limit has been endorsements. exhausted and that our obligations under this K. Assignment of Interest Coverage Form shall be deemed completely fulfilled and extinguished; Assignment of interest under this Coverage Form shall not bind us unless its consent is endorsed to this b. Initiate, and cooperate in, the transfer of Coverage Form. control, to any appropriate insured, of all open "claims" to you; and L. Common Policy Conditions
c. Take such steps, as we deem appropriate, to Unless otherwise stated in this Coverage Form, all of avoid a default in, or continue the defense of, the terms and conditions of the Businessowners such "claims" until such transfer is Common Policy Conditions shall be included and incorporated into this Coverage Form.

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SINGLE LIMIT OF INSURANCE ENDORSEMENT FOR

EMPLOYMENT PRACTICES/FIDUCIARY LIABILITY COVERAGE FORMS In consideration of the premium paid for this Policy, it is hereby understood and agreed that the following endorsement is applicable to the Employment Practices Liability and Fiduciary Liability Coverage Forms:

SINGLE LIMIT OF INSURANCE/DEDUCTIBLE Example No. 1
A. The Employment Practices/Fiduciary Liability single EPL Deductible: $5,000 limit of insurance shown in the Declarations and Employment Practices/Fiduciary Single Limit of subject to the provisions of the Employment Practices Insurance: $100,000 Liability and Fiduciary Liability Coverage Forms is the total amount we will pay as "damages" and "defense "Damages" and "Defense Expenses": $75,000 expenses" under both the Employment Practices
The EPL Deductible will be subtracted from the Liability and Fiduciary Liability Coverage Forms amount of "damages" and "defense expenses" in combined, regardless of the number of insureds, calculating the amount payable: "claims" made or persons or entities making "claims" under such Coverage Forms. If "related claims" are $75,000 - $5,000 = $70,000 Amount Payable subsequently made against the insured and reported
to us, all such "related claims," whenever made, shall Example No. 2 be considered a single "claim" first made and reported EPL Deductible: $5,000 to us within the "policy period" in which the earliest of the "related claims" was first made and reported to us. Employment Practices/Fiduciary Single Limit of Insurance: $100,000 B. The Employment Practices/Fiduciary Liability single limit of insurance shown in the Declarations shall be "Damages" and "Defense Expenses": $120,000 our maximum aggregate limit of insurance for all The EPL Deductible will be subtracted from the "damages" and "defense expenses" under the amount of "damages" and "defense expenses" Employment Practices Liability and Fiduciary Liability ($120,000 - $5,000 = $115,000). Since the amount Coverage Forms combined, regardless of the number of the "damages" and "defense expenses" minus of: the EPL Deductible exceeds the Employment
Practices/Fiduciary Liability single limit of 1. Insureds; insurance, the policy will pay the full Employment

2. Practices/Fiduciary Liability Single Limit of "Claims"; Insurance ($100,000).

3. "Damages" or "defense expenses" incurred; or
D. Subject to Paragraph E. below, we may pay any part

4. Claimants; or all of the EPL Deductible amount to effect Our settlement of any "claim" and, upon notification of the obligations under both the Employment Practices action taken, you shall promptly reimburse us for such Liability and Fiduciary Liability Coverage Forms, shall part of the EPL Deductible amount as has been paid be completely fulfilled and extinguished if the by us. Employment Practices/Fiduciary Liability single limit of insurance is exhausted by payment of "damages" or E.. No deductible applies with respect to any "claim" "defense expenses." against any "insured person" if you are not permitted C. We will to advance "defense expenses" or to indemnify such pay "damages" and "defense expenses" in "insured person" for "damages" by reason of: excess of the EPL Deductible shown on the Declarations, up to the applicable Employment 1. Financial insolvency; or Practices/Fiduciary Liability single limit of insurance.

2. A good faith determination by you that such
payment is not permitted under the broadest
construction of applicable law
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EMPLOYMENT PRACTICES LIABILITY COVERAGE FORM
THIS IS A CLAIMS MADE COVERAGE FORM. PLEASE READ ALL PROVISIONS AND CONTACT YOUR AGENT IF YOU HAVE ANY QUESTIONS. THIS INSURANCE APPLIES ONLY TO "WRONGFUL ACTS" THAT OCCUR BETWEEN THE RETROACTIVE DATE AND THE END OF THE "POLICY PERIOD." THIS INSURANCE APPLIES ONLY TO "CLAIMS" FIRST MADE AGAINST THE INSURED AFTER THE INCEPTION DATE AND BEFORE THE END OF THE "POLICY PERIOD" OR ANY APPLICABLE EXTENDED REPORTING PERIOD AND REPORTED TO US IN ACCORDANCE WITH THE PROVISIONS OF THIS FORM. UPON TERMINATION OF YOUR POLICY AN AUTOMATIC

EXTENDED REPORTING PERIOD WILL BE PROVIDED, AND A SUPPLEMENTAL EXTENDED REPORTING PERIOD WILL BE AVAILABLE.

Various provisions in this Coverage Form restrict coverage. Read the entire Coverage Form carefully to determine rights, duties and what is and is not covered.

Throughout this Coverage Form the terms "you" and "your" refer to the Named Insured shown in the Declarations, and any other person or organization qualifying as a Named Insured under this policy." The terms "we," "us" and "our" refer to the Stock Insurance Company named on the Declarations providing this insurance.

The word "insured" means any person or organization qualifying as such under Section II Who Is An Insured.

Other words and phrases that appear in quotation marks have special meaning. Refer to Section III Definitions.

SECTION I - INSURING AGREEMENTS No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided A. Coverage for under paragraph 1.D. –Supplementary Payments We will pay those sums in excess of the deductible B. Defense and subject to the limits of liability that the Insured becomes legally obligated to pay as "damages" We have the right and duty to defend all "suits," even if because of a "claim" resulting from a "wrongful the allegations are groundless, false or fraudulent. We employment practice" provided: shall have the right to appoint counsel and to make such investigation and defense of a "suit" as we deem 1. The "wrongful employment practice" takes place in necessary. Alternatively we may, at our option, give the "coverage territory"; our written consent to the defense of any such "suit" to

2. The "wrongful employment practice" did not occur the insured. Our obligation to defend any "suit" or pay before the Retroactive Date, if any, shown in the any "damages" and "defense expenses" for any Declarations nor after "claim" shall be completely fulfilled and extinguished if the end of the "policy period"; and the limit of insurance has been exhausted by payment of "damages" or "defense expenses."

3. A "claim" arising out of a "wrongful employment
practice" is first made against an insured, during C. Consent To Settle the "policy period" or Extended Reporting Period, We shall not settle a "claim" without your written if applicable and is reported to us in accordance consent. If you refuse to consent to a settlement or with Section VIII, Conditions, paragraph C, Duties compromise recommended by us, and acceptable to in the event of a "Claim"; and the claimant, then the applicable limit of insurance

4. Prior to the inception date of this Coverage Form: under this Coverage Form shall be reduced to the amount for which the "claim" could have been settled
a. the Insured did not give notice to a prior plus all "defense expenses" incurred up to the time we insurer of a "related claim"; made our recommendation.
b. the Insured did not give notice to a prior D. Supplementary Payments insurer of any such "wrongful employment
practice" or "interrelated wrongful employment We will pay, with respect to any "claim" or "suit" we practice." investigate or settle, or any "suit" against an insured we defend all "defense expenses." These payments
are included within and reduce the Limits of Insurance.

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SECTION II – WHO IS AN INSURED 1. criminal or civil fines or penalties imposed by law; A. If you are designated in the Declarations as: 2. taxes;

1. A partnership or joint venture, you are an insured. 3. liquidated or the multiple portion of any multiplied Your partners or members are also insureds. damages, amounts which may be deemed uninsurable under the law pursuant to which this 2. A limited liability company, you are an insured. policy shall be construed; Your members and managers are also insureds.

4. compensation earned by the claimant in the 3. An organization other than a partnership, joint course of employment but unpaid by the Insured, venture or limited liability company, you are an including salary, wages, commissions, bonus or insured. Your "executive officers" and directors incentive compensation; are also insureds.

5. any amounts for which an Insured is liable due to B. Your "employees" are also insureds, unless otherwise breach of any written contract of employment; excluded in this policy.

6. amounts representing medical or insurance C. Any organization you newly acquire or form, other than premiums or benefit claim payments; a partnership, joint venture or limited liability company, and over which you maintain ownership or majority 7. any amount for which an Insured is absolved from interest, will qualify as a Named Insured if no other payment by reason of any covenant, agreement or similar insurance applies to that organization. You court order; or must notify us of such acquisition or formation as soon 8. future salary, wages or commissions of a claimant as practicable. However, coverage under this who is hired, promoted or reinstated to provision: employment pursuant to a settlement of, order in,

1. Is afforded only until the 90th day after you or other resolution of any "claim" acquire or form the organization, or until the end of Notwithstanding anything to the contrary above, the policy period, whichever is earlier; and "damages" shall include punitive or exemplary

2. Does not apply to an offense committed before damages, if insurable, to the fullest extent permitted by you acquired or formed the organization. any applicable law. Where you reasonably determine that punitive, exemplary or multiple damages are No person or organization is an insured with respect to the insurable under any applicable law, we shall not conduct of any current or past partnership, joint venture or challenge that determination of insurability. limited liability company that is not shown as a Named Insured in the Declarations. D. "Defense expenses" means all fees charged by attorneys designated by us, or by you, with our written SECTION III – DEFINITIONS consent and all other reasonable and necessary fees, The costs and expenses resulting from the investigation, following defined words shall have the same meaning throughout this Coverage Form, whether expressed in the adjustment, defense and appeal of a "claim" if incurred singular or the plural. by us or you with our written consent, including the costs of appeal, attachment or similar bonds. We have
A. "Claim" means a "suit" or written demand for monetary no obligation to provide such bonds. "Defense damages against an insured and made by or on behalf Expenses" shall not include salaries, wages, fees, of a natural person who is an "employee" or applicant overhead or benefit expenses associated with the for employment for a "wrongful employment practice." directors, officers, and employees of yours.

B. "Coverage territory" means: E. "Domestic Partner" means any person qualifying as

1. The United States such under any federal, state or local laws or under of America (including its your employee benefit plans. territories or possessions) and Puerto Rico; or

2. All F. "EEOC Proceeding" means an investigative parts of the world if the insured's responsibility proceeding before the Equal Employment Opportunity to pay "damages" is determined in a "suit" on the merits Commission or an adjudicatory or investigative brought in the territory described in Paragraph 1. proceeding before any similar federal, state or local above or in a settlement of a "claim" government body whose purpose is to address that we agree to. "wrongful employment practices."
C. "Damages" means sums (including back pay and
G. "Employee" means all of your past, present or future front pay), settlements, judgments (including any full-time or part-time employees, including seasonal award of pre-judgment and post-judgment interest) for which and temporary employees and employees leased or you are legally obligated to pay on account of a loaned to you. "Employee" does not include an covered "claim." "Damages" shall not include:
independent contractor.

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H. "ERISA or any Similar Act" means the Employee 3. Violation of any federal, state or local laws Retirement Income Security Act of 1974, as amended, (whether common-law or statutory) concerning or any similar common or statutory law of the United employment or discrimination in employment, States, Canada or their states, territories or provinces including the Americans with Disabilities Act of or any other jurisdiction anywhere in the world. 1992, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1967, Title I. "Executive officer" means your chairperson, chief VII of the Civil Rights Act of 1964 and the Civil executive officer, president, chief financial officer and Rights Act of 1866; in-house general counsel, and, the director of human resources or equivalent position; 4. Sexual harassment or other unlawful harassment in the work place; J. "Insured Persons" means all of those natural person insureds who are your partners, members, managers, 5. Wrongful deprivation of career opportunity or "executive officers," directors and "employees" failure to employ or promote; K. "Interrelated Wrongful Employment Practices" 6. Wrongful discipline of "employees"; means any "wrongful employment practices" which are 7. Retaliation against "employees" for the exercise of logically or causally connected by reason of any any legally protected right or for engaging in any common fact, circumstance, situation, transaction or legally protected activity; event.

8. Negligent evaluation of "employees"; L. "Policy Period" means the period from the effective date of this Coverage Form to the expiration date 9. Failure to adopt adequate workplace or stated on the Declarations, or its earlier cancellation employment policies and procedures; date.

10. Employment-related defamation or invasion of
M. "Pollutants" means any substance exhibiting privacy; or hazardous characteristics as, is or may be defined or

11. Employment-related wrongful infliction of identified on any list of hazardous substances issued emotional distress. by the United States Environmental Protection Agency or any state or local or foreign counterpart. "Pollutants" SECTION IV– EXTENDED REPORTING PERIOD also means, without limitation, any solid, liquid,
gaseous or thermal irritant or contaminant, including A. If the first Named Insured cancels or non-renews this smoke, vapor, soot, fumes, acids, alkalis, chemicals or Coverage Form or if we decide not to offer any waste (including materials to be recycled, renewal terms for this Coverage Form, the first Named reconditioned or reclaimed), as well as any air Insured shall have the right to purchase, upon emission, odor, waste water, oil or oil products, payment of an additional premium not to exceed 200% infectious or medical waste, asbestos, or asbestos of the annual premium for this coverage, an extension products or any noise. of this Coverage Form for a period of 12 months immediately following the end of the "policy period,"
N. "Related claims" mean all claims arising out of a but only with respect to any "wrongful employment single "wrongful employment practice" or arising out of practice" committed before the earlier of the end of the "interrelated wrongful employment practices." "policy period"; O. "Suit" means a formal civil, administrative, or This period shall be referred to as the Extended regulatory proceeding (including an "EEOC Reporting Period.

Proceeding") or investigation or an arbitration against an insured, including any appeal therefrom. B. As a condition precedent to the right to purchase the Extended Reporting Period, the total premium for this
P. "Wrongful Employment Practice" means any actual Coverage Form must have been paid. The right to or alleged error, misstatement, misleading statement, purchase the Extended Reporting Period shall end act, omission, neglect or breach of duty committed or unless we receive written notice and full payment of attempted by the "insured persons" in their capacity as the premium for such period within 30 days after the such or by you constituting or related to end of the "policy period."

1. Wrongful dismissal or discharge or termination of C. If the Extended Reporting Period is purchased, the employment, whether actual or constructive; entire premium shall be deemed fully earned at its commencement without any obligation by us to return 2. Employment-related misrepresentation; any portion thereof.

D. There is no separate or additional limit of insurance for the Extended Reporting Period.

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SECTION V - LIMIT OF INSURANCE law anywhere in the world governing an employer's obligation to notify or bargain with Your rights and ours are stated in the attached Single others in advance of any facility closing or Limit of Insurance Endorsement For Employment mass layoff. Practices/Fiduciary Liability Coverage Forms f. The National Labor Relations Act, as SECTION VI - EXCLUSIONS amended, or any other federal, state or local A. Exclusions Applicable to Damages and Defense statutory or regulatory law or common law Expenses anywhere in the world governing employees'
rights and the employers duties with respect
We will not be liable to pay any "damages" or "defense to unions, bargaining, strikes, boycotts, expenses" under this Coverage Form in connection picketing, lockouts or collective activities. with any "claim" made against an insured:

However, this exclusion shall not apply to any

1. Bodily Injury/Property Damage "claim" alleging retaliation or wrongful dismissal or For discharge or termination of employment whether any actual or alleged bodily injury (including actual or constructive, because of a claimant's death), sickness, disease of any person, or exercise of a right pursuant to any such laws; damage to or destruction of any tangible property including loss of use except that this exclusion 3. Pollution shall not apply to allegations of emotional distress,
humiliation or mental anguish; Based upon, directly or indirectly arising out of or in any way involving: any nuclear reaction,

2. Violation of Law radiation or contamination, or any actual, alleged Based or threatened discharge, release, escape, or upon, directly or indirectly arising out of, or disposal of, or exposure to, "pollutants"; any in any way involving any actual or alleged violation request, direction or order that any of the insureds of:
test for, monitor, clean up, remove, contain, treat,
a. (i) "ERISA or any Similar Act," (ii) the detoxify, neutralize or in any way respond to or Consolidated Omnibus Budget Reconciliation assess the effect of "pollutants" or nuclear Act of 1985 (COBRA), as amended, or (iii) reaction, radiation or contamination, or any any other federal, state or local statutory law voluntary decision to do so; or any actual or or common law anywhere in the world alleged property damage, or bodily injury, governing any employee benefit program, sickness, disease or death of any person resulting policy, plan or arrangement of any type, from any of the aforementioned matters. However, including but not limited to laws governing this exclusion shall not apply to any "claim" retirement or pension benefit programs, alleging retaliation or wrongful dismissal or welfare plans, insurance plan, employee stock discharge or termination of employment whether option ownership or employee stock purchase actual or constructive, because of a claimant's plans or deferred compensation programs; exercise of a right pursuant to any such laws; b. Any law governing workers' compensation, 4. Prior Wrongful Acts of Subsidiaries unemployment insurance, social security,
For: disability benefits or any other similar federal,
state or local statutory or regulatory law or (a) Any "wrongful employment practice" by an common law anywhere in the world; insured of any of your subsidiaries, or by such c. The Occupational Safety subsidiary occurring before the date such and Health Act of entity became a subsidiary, or 1970 (OSHA), as amended, or any other federal, state or local statutory or regulatory (b) Any other "wrongful employment practice," law or common law anywhere in the world whenever occurring, which, together with a governing workplace safety and health; "wrongful employment practice" described in d. The Fair (a) above, would constitute "interrelated Labor Standards Act (except the Equal Pay Act), wrongful employment practices." as amended, or any other federal, state or local statutory law or common 5. Assumed Liability law anywhere in the world governing wage,
hour and payroll policies; Based upon, directly or indirectly arising out of or in any way involving the insured's assumption of
e. The Workers' Adjustment and Retraining the liability of others in any oral or written contract Notification Act, Public Law 100-379 (1988), or agreement, unless such liability would have as amended, or any other federal, state or attached to an Insured in the absence of such local statutory or regulatory law or common agreement;
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B. Exclusions Applicable to Non-Monetary Relief C. Duties in the Event of A "Wrongful Employment Practice" That May Result In A "Claim" We will not be liable to pay any "damages" under this Coverage Form that represent If, during the "policy period," you first become aware of a specific "wrongful employment practice" which may 1. The cost of any non-monetary relief, including reasonably give rise to a future "claim," and during the without limitation any costs associated with "policy period" give written notice to us of: compliance with any injunctive relief of any kind or nature imposed by any judgment or settlement; 1. The names of any potential claimants and a description of the "wrongful employment practice" 2. The costs associated with providing any which forms the basis of their potential "claim"; reasonable accommodations required by, made as a result of, or to conform with the requirements 2. The identity of the specific insureds allegedly of the Americans With Disabilities Act and any responsible for such specific "wrongful amendments thereto or any similar federal, state employment practice"; or local statute, regulation, or common laws; 3. The consequences which have resulted or may

3. Amounts determined to be owing under an result from such specific "wrongful employment express contract with or express severance practice";
obligation of yours; however, this exclusion shall 4. The nature of the potential monetary damages not apply if and to the extent that liability would which may be sought in consequence of such have attached to such insured in the absence of specific "wrongful employment practice"; and the express contract with or obligation of yours ; or

5. The circumstances by which you first became 4. Medical or insurance benefits to which the aware of such specific "wrongful employment claimant allegedly was entitled or would have practice"; been entitled had you provided the claimant with a continuation or conversion of insurance. Then any "claim" otherwise covered pursuant to this Coverage Form which is subsequently made and SECTION VII – CONDITIONS which arises out of such "wrongful employment A. Bankruptcy practice" shall be deemed to have been first made and reported to us by you at the time we received such Bankruptcy or insolvency of the insured or of the written notice. No coverage is provided for fees and "insured's" estate will not relieve us of our obligations expenses incurred prior to the time such notice results under this policy. in a "claim." B. Duties In The Event Of A "Claim" D. When a "Claim" is Deemed Made

1. If, during the "policy period' or any Extended A "claim" shall be deemed made: Reporting Period, if applicable, any "claim" is first made against the "insured," the insured shall, as a 1. In the case of a civil, administrative or regulatory condition precedent to our obligations under this proceeding or arbitration, on the earliest of the Coverage Form, give us written notice as soon as date of service upon or other receipt by the practicable but in no event later than ninety (90) insured of a complaint, or similar document days after the end of the "policy period" or the against the insured in such proceeding or Extended Reporting Period, if applicable. arbitration;

2. You must: 2. In the case of an investigation, on the earliest of the date of service upon or other receipt by the
a. Immediately send us copies of any demands, insured of a written notice or subpoena from the notices, summonses or legal papers received investigating authority identifying such "insured in connection with the "claim"; person" as an individual against whom a formal b. Authorize us proceeding may be commenced; to obtain records and other information; and 3. In the case of a written demand for monetary c. Cooperate with us in the investigation or damages, upon the insured's receipt of such settlement of written demand. the "claim" or defense of the "suit." E. Other Insurance

3. No insured shall voluntarily make a payment, The Other Insurance clause, Section H. of the assume any obligation, or incur any expense Common Policy Conditions is deleted and replaced without our written consent. with the following:

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If any "damages" and "defense expenses" resulting request, the insured will bring "suit" or transfer those from any "claim" are insured under any other policies, rights to us and help us enforce them. this Coverage Form shall apply only to the extent the In no event shall the insured be entitled to recoup from "damages" and "defense expenses" exceed the recoveries any amount to satisfy any deductible until amount paid under such other insurance, whether after all amounts which we are required to pay or do such other insurance is stated to be primary, pay under this Coverage Form are reimbursed to us. contributory, excess, contingent or otherwise, unless such other insurance is written only as specific excess I. Transfer Of Duties When Limit Of Insurance Is insurance over this Coverage Form. Exhausted
F. Section IV. Estates, Legal Representatives and 1. If we conclude that, based on "claims" which have Spouses/Domestic Partners been reported to us and to which this insurance may apply, the limit of insurance is likely to be Section L. of the Common Policy Conditions, Transfer exhausted in the payment of "damages" or Of Your Rights And Duties Under This Policy, is "defense expenses," we will notify the first named deleted in its entirety and replaced as follows: insured, in writing, to that effect; The estates, heirs, legal representatives, assigns, 2. When the limit of insurance has actually been spouses and any "domestic partner" of "insured exhausted by payments of "damages" or "defense persons" shall be considered insureds under this expenses," we will: Coverage Form; provided, however, coverage is afforded to such estates, heirs, legal representatives, a. Notify the first named insured in writing, as assigns and spouses only for a "claim "arising solely soon as practicable, that such limit has been out of their status as such and, in the case of a spouse exhausted and that our obligations under this or "domestic partner," where such "claim" seeks Coverage Form shall be deemed completely damages from marital community property, jointly held fulfilled and extinguished; property or property transferred from the "insured
b. Initiate, and cooperate in, the transfer of person" to the spouse or "domestic partner." No control, to any appropriate insured, of all open coverage is provided for any act, error or omission of "claims" to you; and an estate, heir, legal representative, assign, spouse or "domestic partner." All terms and conditions of this c. Take such steps, as we deem appropriate, to Coverage Form, including without limitation the avoid a default in, or continue the defense of, deductible applicable to "damages" and "defense such "claims" until such transfer is completed, expenses" incurred by the "insured person" shall also provided you are cooperating in completing apply to "damages" and "defense expenses" incurred such transfer. by such estates, heirs, legal representatives, assigns, spouses and 3. Upon receipt of such notice, you must: "domestic partners." G. No Action Against Us a. Cooperate in the transfer of control of "claims"; and

1. No action shall be taken against us unless, as a
condition precedent, there shall have been full b. Arrange for the defense of such "claim" within compliance with all the provisions of this such time period as agreed to between you Coverage Form nor until the amount of your and us. Arrangements for the defense of such obligation "claim" must be made as soon as practicable. to pay shall have been finally determined either by final and nonappealable 4. We will take no action with respect to defense for judgment against you after trial or by written any "claim" if such "claim" is reported to us after agreement by you, the claimant and us. the applicable limit of insurance is exhausted. It

2. No person or organization shall have any right becomes your responsibility to arrange defense under for such "claim." this Coverage Form to join us a party to any "suit" against you to determine your liability, nor 5. You will reimburse us as soon as practicable for shall we be impleaded by you or your legal expenses we incur in taking those steps we deem representatives in any such "suit." appropriate in accordance with Paragraph 2.

H. Transfer Of Rights Of Recovery Against Others To above.

Us 6. The exhaustion of the applicable limit of insurance and the resulting end of our duty to defend will not If the insured has rights to recover all or part of any payment we have made under this Coverage Form be affected by our failure to comply with any of the provisions of this Condition. those rights are transferred to us. The insured must do nothing after a "claim" is made to impair them. At our
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J. Named Insured Authorization K. Assignment of Interest The insureds agree that the first named insured will act Assignment of interest under this Coverage Form shall on behalf of all insureds with respect to giving of all not bind us unless its consent is endorsed to this notice to us (except notices provided in Section VII. Coverage Form.

Paragraph B and C), the receipt of notices from us, the L. Common Policy Conditions payment of the premiums, the receipt of any return premiums that may become due under this Coverage Unless otherwise stated in this Coverage Form, all of Form, and the acceptance of endorsements. the terms and conditions of the Business Owners Common Policy Conditions Endorsement shall be
included and incorporated into this Coverage Form.

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THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CONCURRENT CAUSATION, EARTH MOVEMENT & WATER EXCLUSION

CHANGES
This endorsement modifies insurance provided under the following:

BUSINESSOWNERS SPECIAL PROPERTY COVERAGE FORM
A. Section B. EXCLUSIONS Action, and such resulting loss or damage is the first paragraph of B.1. is not otherwise excluded, we will pay for the deleted in its entirety and replaced by the following:
loss or damage caused by that fire, building

1. We will not pay for loss or damage directly or glass breakage or Volcanic Action. indirectly caused by or resulting from any of the
Volcanic action means direct loss or damage following regardless of: (a) the causes of the resulting from the eruption of a volcano when excluded event; or (b) other causes of the loss; or the loss or damage is caused by: (c) any other causes or events, whether or not insured under this Policy, which may have (a) Airborne volcanic blast or airborne shock contributed concurrently or in any sequence with waves; the excluded event to produce the loss; or (d)
whether (b) Ash, dust or particulate matter; or the event occurred suddenly or gradually, involved isolated or widespread damage, arose (c) Lava flow. from natural or external forces or acts or omissions of man, or occurred as a result of any All volcanic eruptions that occur within any combination of any of the following: 168 hour period will constitute a single occurrence. B. Section B. EXCLUSIONS exclusion B.1.b. Earth Movement deleted in its entirety and replaced by the Volcanic action does not include the cost to following: remove ash, dust or particulate matter that
does not cause direct physical loss or b. Earth Movement damage to the Covered Property. (1) Earthquake, including any earth sinking, rising C. Section B. EXCLUSIONS exclusion B.1.g. Water is or shifting related to such event; deleted in its entirety and replaced by the following:
(2) Landslide, including any earth sinking, rising g. Water or shifting related to such event;
(1) "Flood," surface water, waves, tides, tidal (3) Mine subsidence, meaning subsidence of a waves, overflow of any body of water, man-made mine, whether or not mining including release of water held by a dam, levy activity has ceased; or dike or by a water or flood control device, (4) Earth sinking or their spray, all whether driven by wind or (other than sinkhole collapse), not; rising or shifting, including soil conditions
which cause settling, cracking or other (2) Mudslide or mudflow; disarrangement of foundations or other parts of realty. Soil conditions include contraction, (3) Water or sewage that backs up or overflows expansion, freezing, thawing, erosion, from a sewer, drain or sump; or improperly compacted soil and the action of (4) Water under the ground surface pressing on, water under the ground surface. or flowing or seeping through:

Also, Earth Movement, as described in (1) through (a) Foundations, walls, floors or paved (4) applies to acts or omissions of man or any surfaces; other cause or combination of causes listed above. But if Earth Movement, as described in (1) (b) Basements, whether paved or not; or through (4) above, results in fire or explosion, and (c) Doors, windows or other openings. such resulting loss or damage is not otherwise excluded, we will pay for the loss or damage But if water, as described in g.(1) through g.(4) above, caused by that fire or explosion. results in fire, explosion, or sprinkler leakage not otherwise excluded, we will pay for the loss or damage (5) Volcanic eruption, explosion or effusion. But if caused by that fire, explosion, or sprinkler leakage. volcanic eruption, explosion or effusion results in fire, building glass breakage or Volcanic
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D. Wherever the word "flood" appears in the Commercial areas, whether caused by natural occurrences, acts or Property Coverage Part, it is amended to a defined omissions of man or any other cause or combination of term, as per the following, and is added to the causes.

Definitions section of each applicable coverage part. All flooding in a continuous or protracted event will "Flood" means a general and temporary condition of constitute a single flood. partial or complete inundation of normally dry land
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THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

IDENTITY THEFT/RECOVERY SERVICES ENDORSEMENT

IDENTITY THEFT/RECOVERY CASE MANAGEMENT SERVICE AND EXPENSE

REIMBURSEMENT
This endorsement modifies insurance provided under the following:

BUSINESSOWNERS SPECIAL PROPERTY COVERAGE FORM
authorized representative of an "identity recovery The following changes apply to the Businessowners Special Property Coverage Form: insured," whether acting alone or in collusion with others. However, this exclusion shall not apply to
A. IDENTITY RECOVERY COVERAGE the interests of an "insured" who has no knowledge of or involvement in such fraud, The following is added to Paragraph 5. Additional dishonesty or criminal act. Coverages:

We 3. Loss other than "identity recovery expenses." will provide the Case Management Service and Expense Reimbursement Coverage indicated below if 4. An "identity theft" that is first discovered by the all of the following requirements are met: "identity recovery insured" prior to or after the policy period for which this coverage applies. This 1. There has been an "identity theft" involving the exclusion applies whether or not such "identity personal identity of an "identity recovery insured" theft" began or continued during the period of under this policy; and coverage.

2. Such "identity theft" is first discovered by the 5. An "identity theft" that is not reported to us within "identity recovery insured" during the policy period 60 days after it is first discovered by the "identity for which this Identity Recovery coverage is recovery insured." applicable; and

6. An "identity theft" that is not reported in writing to 3. Such "identity theft" is reported to us as soon as the police. practicable but in no event later than 60 days after it is first discovered by the "identity recovery C. LIMITS OF INSURANCE insured."

1. Case Management Service is available as needed
If all three of the requirements listed above have been for any one "identity theft" for up to 12 consecutive met, then we will provide the following to the "identity months from the inception of the service. recovery insured": Expenses we incur to provide Case Management Service do not reduce the amount of limit available 1. Case Management Service for Expense Reimbursement coverage.

Services of an "identity recovery case manager" 2. Expense Reimbursement coverage is subject to a as needed to respond to the "identity theft"; and limit of $25,000 annual aggregate per "identity

2. Expense Reimbursement recovery insured." Regardless of the number of claims, this limit is the most we will pay for the Reimbursement of necessary and reasonable total of all loss or expense arising out of all "identity recovery expenses" incurred as a direct "identity thefts" to any one "identity recovery result of the "identity theft." insured" which are first discovered by the "identity This coverage is additional insurance. recovery insured" during a 12-month period starting with the beginning of the present annual
B. EXCLUSIONS policy period. If an "identity theft" is first The following additional exclusions are added to discovered in one policy period and continues into Section B. - Exclusions and apply to this coverage: other policy periods, all loss and expense arising from such "identity theft" will be subject to the
We do not cover loss or expense arising from any of aggregate limit applicable to the policy period the following: when the "identity theft" was first discovered.

1. Theft of a professional or business identity. a. Legal costs as provided under paragraph d. of the definition of "identity recovery expenses" 2. Any fraudulent, dishonest or criminal act by an are part of, and not in addition to the Expense "identity recovery insured," or any person aiding or Reimbursement coverage limit. abetting an "identity recovery insured," or by any SB-300596-A Page 1 of 3
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b. Lost Wages and Child and Elder Care As respects Expense Reimbursement coverage, Expenses as provided under paragraphs e. the "identity recovery insured" must send to us and f. of the definition of "identity recovery within 60 days after our request, receipts, bills or insured" are jointly subject to a sublimit of other records that support his or her claim for $250. per day, not to exceed $5,000. in total. "identity recovery expenses." This sublimit is part of, and not in addition to 2. Services the Expense Reimbursement coverage limit.

Coverage is limited to lost wages and The following conditions apply as respects any expenses incurred within 12 months after the services provided by us or our designees to any first discovery of the "identity theft" by the "identity recovery insured" under this "identity recovery insured." endorsement:
c. Mental Health Counseling as provided under a. Our ability to provide helpful services in the paragraph g. of the definition of "identity event of an "identity theft" depends on the recovery expenses" is subject to a sublimit of cooperation, permission and assistance of the $1,000. This sublimit is part of, and not in "identity recovery insured." addition to the Expense Reimbursement
b. All services may not be available or applicable coverage limit. Coverage is limited to to all individuals. For example, "identity counseling that takes place within 12 months recovery insureds" who are minors or foreign after the first discovery of the "identity theft" nationals may not have credit records that can by the "identity recovery insured." be provided or monitored. Service in Canada
D. DEDUCTIBLE will be different from service in the United States and Puerto Rico in accordance with Case Management Service is not subject to a local conditions. deductible.
c. We do not warrant or guarantee that our Expense Reimbursement coverage is subject to a services will end or eliminate all problems deductible of $250. Any one "identity recovery associated with an "identity theft" or prevent insured" shall be responsible for only one deductible future "identity thefts." under this Identity Recovery Coverage during any one policy period. 3. Computer Security
E. CONDITIONS It is the responsibility of each "identity recovery insured" to use and maintain his or her computer The following additional conditions are added to system security, including personal firewalls, anti- Section F. – Commercial Property Conditions and virus software and proper disposal of used hard apply to this coverage: drives.

1. Assistance and Claims F. DEFINITIONS
For assistance, the "identity recovery insured" With respect to the provisions of this endorsement should call the Identity Recovery Help Line at 1- only, the following definitions are added to Section G. 877-CNA-ASAP (1-877-262-2727) CNA Claims. – Property Definitions:

The Identity Recovery Help Line can provide the 1. "Identity Recovery Case Manager" means one or "identity recovery insured" with:
more individuals assigned by us to assist an
a. Information and advice for how to respond to "identity recovery insured" with communications a possible "identity theft"; and we deem necessary for re-establishing the integrity of the personal identity of the "identity b. Instructions for how to submit a service recovery insured." This includes, with the request for Case Management Service and/or permission and cooperation of the "identity a claim form for Expense Reimbursement recovery insured," written and telephone Coverage. communications with law enforcement authorities, In some cases, we may provide Case governmental agencies, credit agencies and Management services at our expense individual creditors and businesses. to an "identity recovery insured" prior to a determination 2. "Identity Theft" means the fraudulent use of the that a covered "identity theft" has occurred. Our social security number or other method of provision of such services is not an admission of identifying an "identity recovery insured." This liability under the policy. We reserve the right to includes fraudulently using the personal identity of deny further coverage or service if, after an "identity recovery insured" to establish credit investigation, we determine that a covered accounts, secure loans, enter into contracts or "identity theft" has not occurred. commit crimes.

SB-300596-A Page 2 of 3
(Ed. 01/08)
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SB-300596-A
(Ed. 01/08)
"Identity theft" does not include the fraudulent e. Lost Wages use of a business name, d/b/a/ or any other Actual lost wages of the "identity recovery method of identifying a business activity. insured" for time reasonable and necessarily "Identity theft" does not include the unauthorized taken away from work and away from the use of a valid credit card, credit account or bank work premises. Time away from work account. However, "identity theft" does include includes partial or whole work days. Actual the fraudulent alteration of account profile lost wages may include payment for vacation information, such as the address to which days, discretionary days, floating holidays and statements are sent. paid personal days. Actual lost wages does not include sick days or any loss arising from 3. "Identity Recovery Expenses" means the time taken away from self employment. following when they are reasonable and Necessary time off does not include time off necessary expenses that are incurred in the to do tasks that could reasonable have been United States or Canada as a direct result of an done during non-working hours. "identity theft":
f. Child and Elder Care Expenses
a. Costs for re-filing applications for loans,
grants or other credit instruments that are Actual costs for supervision of children or rejected solely as a result of an "identity theft." elderly or infirm relatives or dependents of the "identity recovery insured" during time b. Costs for notarizing affidavits or other similar reasonable and necessarily taken away from documents, long distance telephone calls and such supervision. Such care must be postage solely as a result of your efforts to provided by a professional care provider who report an "identity theft" or amend or rectify is not a relative of the "identity recovery records as to your true name or identity as a insured." result of an "identity theft."
g. Mental Health Counseling
c. Costs for up to twelve (12) credit reports from
established credit bureaus dated within 12 Actual costs for counseling from a licensed months after your knowledge or discovery of mental health professional. Such care must an "identity theft." be provided by a professional care provider who is not a relative of the "identity recovery d. Legal Costs insured." Fees and expenses for an attorney approved 4. "Identity Recovery Insured" means the by us for: following:
(1) Defending any civil suit brought against a. The owner of the entity insured under this an "identity recovery insured" by a
policy who meets any of the following criteria: creditor or collection agency or entity acting on behalf of a creditor for non- (1) A sole proprietor of the insured entity; payment of goods or services or default (2) A partner in the insured entity; or on a loan as a result of an "identity theft"; and (3) An individual having an ownership
position of 20% or more of the insured (2) Removing any civil judgment wrongfully entity. entered against an "identity recovery insured" as a result of the "identity theft."
SB-300596-A Page 3 of 3
(Ed. 01/08)
SB-300602-A
(Ed. 01/08)
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

TENANTS IMPROVEMENTS AND BETTERMENTS FOR

BUILDING COVERAGE
This endorsement modifies insurance provided under the following:

BUSINESSOWNERS SPECIAL PROPERTY COVERAGE FORM
(10) Your leasehold interest in improvements and The following coverage is added to the Businessowners Special Property Coverage betterments which are not damaged or destroyed, Form:
but which you lose because your lease is 1. Paragraph A.1.a.(9) and (10) are added to the cancelled by the lessor as a result of damage to Businessowners Special Property Coverage Form as the building from a Covered Cause of Loss. When follows: this occurs, we will calculate the value of your (9) Your use interest as tenant in improvements and interest in the improvements and betterments as betterments. Improvements and betterments are though they had been damaged or destroyed and fixtures, alterations, installations or additions: not repaired or replaced promptly, as provided In (a) Made a part of the building or structure you the Valuation Loss Condition. occupy or lease but do not own; and 2. Paragraphs A.1.b. (3) and (5) of the Businessowners (b) You acquired or made at your expense but Special Property Coverage Form are deleted and do are not permitted to remove. not apply.

SB-300602-A Page 1 of 1
(Ed. 01/08)
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SB-300849-A
(Ed. 07/09)
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

RECORDING AND DISTRIBUTION OF MATERIAL OR

INFORMATION IN VIOLATION OF LAW EXCLUSION
This endorsement modifies insurance provided under the following:

BUSINESSOWNERS LIABILITY COVERAGE FORM
A. The following exclusion is added to Section B. B. The following exclusion is added to Section B.

EXCLUSIONS of the Businessowners Liability EXCLUSIONS, Paragraph p. Personal And Advertising Coverage Form: Injury:

2. Exclusions 2. Exclusions
This insurance does not apply to: This insurance does not apply to:
q. Recording And Distribution Of Material Or (15)Recording And Distribution Of Material Or Information In Violation Of Law Information In Violation Of Law "Bodily injury" or "property damage" arising "Personal and advertising injury" arising directly or indirectly out of any action or directly or indirectly out of any action or omission that violates or is alleged to violate: omission that violates or is alleged to violate:
(1) The Telephone Consumer Protection Act (1) The Telephone Consumer Protection Act (TCPA), including any amendment of or (TCPA), including any amendment of or addition to such law; addition to such law;
(2) The CAN-SPAM Act of 2003, including (2) The CAN-SPAM Act of 2003, including any amendment of or addition to such any amendment of or addition to such law; law;
(3) The Fair Credit Reporting Act (FCRA), (3) The Fair Credit Reporting Act (FCRA), and any amendment of or addition to and any amendment of or addition to such law, including the Fair and Accurate such law, including the Fair and Accurate Credit Transaction Act (FACTA); or Credit Transaction Act (FACTA); or (4) Any federal, state or local statute, (4) Any federal, state or local statute, ordinance or regulation, other than the ordinance or regulation, other than the TCPA, CAN-SPAM Act of 2003 or FCRA TCPA, CAN-SPAM Act of 2003 or FCRA and their amendments and additions, that and their amendments and additions, that addresses, prohibits, or limits the printing, addresses, prohibits, or limits the printing, dissemination, disposal, collecting, dissemination, disposal, collecting, recording, sending, transmitting, recording, sending, transmitting, communicating or distribution of material communicating or distribution of material or information. or information.

SB-300849-A Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 1 (Ed. 07/09)
SB-146824-B
(Ed. 01/08)
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BUSINESS INCOME AND EXTRA EXPENSE –

NEWLY ACQUIRED LOCATIONS
This endorsement modifies insurance provided under the following:

BUSINESS INCOME AND EXTRA EXPENSE COVERAGE FORM

BUSINESSOWNERS SPECIAL PROPERTY COVERAGE FORM
The following coverage is added to your Businessowners 2. The most we will pay under this coverage for the Special Property Coverage Form under Paragraph A.6. sum of Business Income and Extra Expense Coverage Extensions. incurred is $250,000 at each location.

Unless otherwise stated, payments made under the 3. Insurance under this extension for each newly following Coverage Extension is subject to and not in acquired location will end when any of the addition to the applicable Limits of Insurance. following first occurs:

Business Income and Extra Expense – Newly Acquired a. This policy expires; Premises b. 90 days expire after you acquire or begin to

1. When the Declarations show that you have construct the property; coverage for Business Income and Extra
c. You report the location to us; Expense, you may extend that insurance to apply to the actual loss of Business Income and d. The Business Income or Extra Expense is necessary Extra Expense you incur due to the more specifically insured. "suspension" of your "operations" during the
We will charge you additional premium for "period of restoration." The "suspension" must be locations reported from the date you acquire the caused by or resulting from a Covered Cause of property. Loss at any premises you newly acquire by
purchase or lease (other than at fairs, trade shows 4. Payments made under this Coverage Extension or exhibitions). are in addition to the applicable Limits of Insurance.

SB-146824-B Page 1 of 1
(Ed. 01/08)
10020006070384118608040
Policy Holder Notice

HOW TO REPORT A CLAIM
Thank you for choosing CNA!
With your CNA Connect® Businessowners Insurance Policy, you have insurance coverage tailored to meet the needs of your business. The international network of insurance professionals and the financial strength of CNA, rated "A" by A.M. Best, provide resources to help you manage the daily risks of your organization so you may focus on what's most important to you.

Claim Services
Claims are reported through a single point of entry available 24/7, connecting you to individuals and information to help you resume your business when you need it most.
• To report a loss go to www.FNOLCNA.com or send an email to [email protected] , or call 833-FNOL-CNA (833-366-5262)
• To request loss runs send an email to [email protected] • For additional questions call CNA Customer Service at (877)-574-0540, or contact your independent CNA Insurance Agent.

Policy Information
CNA representatives may ask you for some of the following information:

Insured Name:

Lewis Stanley Inc.
2633 Manhattan Beach Blvd
REDONDO BEACH, CA 90278
Producer Information:

CS&S/AGENCY ONE AZ LLC
16930 E PALISADES BL
PO BOX 19780 (85269)
FOUNTAIN HILLS, AZ 85268
Policy Number: Producer Processing Code:
7038411860 084287
Policy Period:
06/09/2023 06/09/2024 to
New Business
CNA Branch:

PHOENIX BRANCH
4150 N DRINKWATER BLVD S-105
SCOTTSDALE, AZ 85251
CNA95404XX (3-19) Copyright CNA All Rights Reserved. Page 1 of 1 10020006070384118608041
151 N. Franklin St.

Chicago, IL 60606
Policy Number From Policy Period To Coverage Is Provided By Agency B7038411860 06/09/23 06/09/24 Valley Forge Insurance Company 084287560 Named Insured And Address Agent

CS&S/AGENCY ONE AZ LLC
16930 E PALISADES BL
Lewis Stanley Inc.
2633 Manhattan Beach Blvd
REDONDO BEACH, CA 90278 PO BOX 19780 (85269)
FOUNTAIN HILLS, AZ 85268
** PAYMENT PLAN SCHEDULE **

THE BILLING FOR THIS POLICY WILL BE
FORWARDED TO YOU DIRECTLY FROM CNA.

THE PREMIUM AMOUNT FOR THIS TRANSACTION
IS $1,630.00 .

THIS PREMIUM WILL BE INVOICED BY CNA ON

A SEPARATE STATEMENT ACCORDING TO THE
PAYMENT OPTION YOU SELECT.

ISSUE DATE 06/02/23

END OF COPY
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