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PROOF OF INSURANCE (2016) CLOSED (2)143438 NMK Corporation DBA IPTelSupporf Certificate of Insurance (page 1 of 1) 09/25/2015 05:18:31 PM CERTIFICATE OF LIABILITY INSURANCE DATE 9/255 /201/201IYYYY) 5 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endarsernent(s). PRODUCER I MI T Techlnsurance IAIC No Exn 20 1 1 Npl_ (877) 826 -9067 0c� 1301 Central Expy. South, Suite 115 Techlnsurance ........ - -- E-MAIL s •06 Allen, TX 75013 PRODUCER .. ........ ----------- — 1,01f?tA,l KIRAI'. ... ............... — - - -- RISI AFFORDING COVERAGE NAIC # INSURED INSURER A: Hartford Fire Insurance COmDanV 19682 -- NMK Corporation DBA IPTeISupport d 30104 INSURERS: The Hartford _ . „ 286 Tulip Tree Lane INSURER C : Orange, CA 92865 ....- .....:. ........ .............. ........... . . . .. -- ................................ ............................. .. ws URER D INSURER E! INSURER F COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. .I.NSRµm .. .....__,__ A U c . TYPE OF INSURANCE POLICY NUM9ER _._....._... LIMITS MMf0orYYY w yYyY GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 NTE °.q ✓ COMMERCIAL GENERAL LIABILITY O IF. PRFMICF,S IF. nr�ii „_fyL,at— $ 1,000.000 -.._. CLAIMS -MADE [ ✓ ] OCCUR MED EXP (Any one person) $ 10,000 B Yes 46SBMUN7020 9/25/2015 9/25/2016 PERSONAL & ADV INJURY $ 1,000,000 .......... .. ........ ....._____. ---- GENERAL AGGREGATE — ._ $ 2,000,000 ,.......,. GEN L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP /OP AGG $ 2,000,000 PVdt7. ✓ POLICY LOpC $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ M. (Ea accident) ANY AUTO BODILY INJURY (Per person) $ ...,... ALL OWNED AUTOS -- ---....... ( ..... Per accident) BODILY INJURY $ -- SCHEDULED AUTOS .................................... ............................... .. ... $OY DAMAGE HIRED AUTOS ( Per accident) - - - -- - -- ......... ......, NON -OWNED AUTOS $ $ UMBRELLA LIAB OCCUR EACH OCCURRENCE $ EXCESS LIAR CLAIMS -MADE AGGREGATE $ DEDUCTIBLE $ RETENTION $ $ WORKERS COMPENSATION WC STATU- OTH- AND EMPLOYERS' LIABILITY YIN TnAV i ennerc GQ ANY PROPRIETOR /PARTNER /EXECUTIVE E L EACH ACCIDENT $ OFFICER /MEMBER EXCLUDED? N A 0 / ”' --- -- "DDEE — ......... (Mandatory In NH) E . DISEASE - EA EMPLOYEE; $ If yes, under E.__---------------------- - - - - -- -- ---..........__.................... ............................... OPERATIONS below ,L. DISEASE - POLICY LIMIT $ A Professional Liability (Errors and Omissions) 46TE028145714 10/17/2014 10/17/2015 $1,000,000 / $1,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) City of El Segundo is named as Additional Insured as their interests may appear in regards to general liability, CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE City of El Segundo THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 350 Main Street ACCORDANCE WITH THE POLICY PROVISIONS. El Segundo, CA 90245 -3813 AUTHORIZED REPRESENTATIVE ©1988 -2009 ACORD CORPORATION. All rights reserved, ACORD 25 (2009/09) The ACORD name and logo are registered marks of ACORD Form SS 00 08 04 05 © 2005, The Hartford QUICK REFERENCE BUSINESS LIABILITY COVERAGE FORM READ YOUR POLICY CAREFULLY BUSINESS LIABILITY COVERAGE FORM Beginning on Page A. COVERAGES 1 Business Liability 1 Medical Expenses 2 Coverage Extension - Supplementary Payments 2 B. EXCLUSIONS 3 C. WHO IS AN INSURED 10 D. LIABILITY AND MEDICAL EXPENSES LIMITS OF INSURANCE 14 E. LIABILITY AND MEDICAL EXPENSES GENERAL CONDITIONS 15 1. Bankruptcy 15 2. Duties In The Event Of Occurrence, Offense, Claim Or Suit 15 3. Financial Responsibility Laws 16 4. Legal Action Against Us 16 5. Separation Of Insureds 16 6. Representations 16 7. Otherinsurance 16 8. Transfer Of Rights Of Recovery Against Others To Us 17 F. OPTIONAL ADDITIONAL INSURED COVERAGES 18 Additional Insureds 18 G. LIABILITY AND MEDICAL EXPENSES DEFINITIONS 20 Form SS 00 08 04 05 A, tds BUSINESS LIABILITY" COVERAGE FOR Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, 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 stock insurance company member of The Hartford providing this insurance. The word "insured" means any person or organization qualifying as such under Section C. - Who Is An Insured. Other words and phrases that appear in quotation marks have special meaning. Refer to Section G. - Liability And Medical Expenses Definitions. A. COVERAGES (a) The "bodily injury" or "property 1. BUSINESS LIABILITY COVERAGE (BODILY damage" is caused by an INJURY, PROPERTY DAMAGE, PERSONAL "occurrence" that takes place in the AND ADVERTISING INJURY) "coverage territory"; Insuring Agreement a. We will pay those sums that the insured becomes legally obligated to pay as damages because of "bodily injury", "property damage" or "personal and advertising injury" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "bodily injury", "property damage" or "personal and advertising injury" to which this insurance does not apply. We may, at our discretion, investigate any "occurrence" or offense and settle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in Section D. - Liability And Medical Expenses Limits Of Insurance; and (2) Our right and duty to defend ends when we have used up the applicable limit of insurance in the payment of judgments, settlements or medical expenses to which this insurance applies. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Coverage Extension - Supplementary Payments. b. This insurance applies: (1) To "bodily injury" damage" only if: and "property (b) The "bodily injury" or "property damage" occurs during the policy period; and (c) Prior to the policy period, no insured listed under Paragraph 1. of Section C. — Who Is An Insured and no "employee" authorized by you to give or receive notice of an "occurrence" or claim, knew that the "bodily injury" or "property damage" had occurred, in whole or in part. If such a listed insured or authorized "employee" knew, prior to the policy period, that the "bodily injury" or "property damage" occurred, then any continuation, change or resumption of such "bodily injury" or "property damage" during or after the policy period will be deemed to have been known prior to the policy period. (2) To "personal and advertising injury" caused by an offense arising out of your business, but only if the offense was committed in the "coverage territory" during the policy period. c. "Bodily injury" or "property damage" will be deemed to have been known to have occurred at the earliest time when any insured listed under Paragraph 1. of Section C. — Who Is An Insured or any "employee" authorized by you to give or receive notice of an "occurrence" or claim: (1) Reports all, or any part, of the "bodily injury" or "property damage" to us or any other insurer; Form SS 00 08 04 05 Page 1 of 24 © 2005, The Hartford BUSINESS LIABILITY COVERAGE FORM (2) Receives a written or verbal demand or claim for damages because of the "bodily injury" or "property damage "; or (3) Becomes aware by any other means that "bodily injury" or "property damage" has occurred or has begun to occur. d. Damages because of "bodily injury" include damages claimed by any person or organization for care, loss of services or death resulting at any time from the "bodily injury". e. Incidental Medical Malpractice (1) 'Bodily injury" arising out of the rendering of or failure to render professional health care services as a physician, dentist, nurse, emergency medical technician or paramedic shall be deemed to be caused by an "occurrence ", but only if: (a) The physician, dentist, nurse, emergency medical technician or paramedic is employed by you to provide such services; and (b) You are not engaged in the business or occupation of providing such services. (2) For the purpose of determining the limits of insurance for incidental medical malpractice, any act or omission together with all related acts or omissions in the furnishing of these services to any one person will be considered one occurrence ". 2. MEDICAL EXPENSES Insuring Agreement a. We will pay medical expenses as described below for "bodily injury" caused by an accident: (1) On premises you own or rent; (2) On ways next to premises you own or rent; or (3) Because of your operations; provided that: (1) The accident takes place in the "coverage territory" and during the policy period; (2) The expenses are incurred and reported to us within three years of the date of the accident; and (3) The injured person submits to examination, at our expense, by physicians of our choice as often as we reasonably require. b. We will make these payments regardless of fault. These payments will not exceed the applicable limit of insurance. We will pay reasonable expenses for: (1) First aid administered at the time of an accident; (2) Necessary medical, surgical, x -ray and dental services, including prosthetic devices; and (3) Necessary ambulance, hospital, professional nursing and funeral services. 3. COVERAGE EXTENSION - SUPPLEMENTARY PAYMENTS a. We will pay, with respect to any claim or "suit" we investigate or settle, or any "suit" against an insured we defend: (1) All expenses we incur. (2) Up to $1,000 for the cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which Business Liability Coverage for "bodily injury" applies. We do not have to furnish these bonds. (3) The cost of appeal bonds or bonds to release attachments, but only for bond amounts within the applicable limit of insurance. We do not have to furnish these bonds. (4) All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual loss of earnings up to $500 a day because of time off from work. (5) All costs taxed against the insured in the "suit'. (6) Prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the applicable limit of insurance, we will not pay any prejudgment interest based on that period of time after the offer. (7) All interest on the full amount of any judgment that accrues after entry of the judgment and before we have paid, offered to pay, or deposited in court the part of the judgment that is within the applicable limit of insurance. Any amounts paid under (1) through (7) above will not reduce the limits of insurance. Page 2 of 24 Form SS 00 08 04 05 b. If we defend an insured against a "suit" and an indemnitee of the insured is also named as a party to the "suit ", we will defend that indemnitee if all of the following conditions are met: (1) The "suit" against the indemnitee seeks damages for which the insured has assumed the liability of the indemnitee in a contract or agreement that is an "insured contract "; (2) This insurance applies to such liability assumed by the insured; (3) The obligation to defend, or the cost of the defense of, that indemnitee, has also been assumed by the insured in the same "insured contract "; (4) The allegations in the "suit" and the information we know about the "occurrence" are such that no conflict appears to exist between the interests of the insured and the interest of the indemnitee; (5) The indemnitee and the insured ask us to conduct and control the defense B. of that indemnitee against such "suit" and agree that we can assign the same counsel to defend the insured and the indemnitee; and (6) The indemnitee: (a) Agrees in writing to: (i) Cooperate with us in the investigation, settlement or defense of the "suit "; (ii) Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the "suit "; (iii) Notify any other insurer whose coverage is available to the indemnitee; and (iv) Cooperate with us with respect to coordinating other applicable insurance available to the indemnitee; and (b) Provides us with written authorization to: (i) Obtain records and other information related to the "suit"; and (ii) Conduct and control the defense of the indemnitee in such "suit ". BUSINESS LIABILITY COVERAGE FORM So long as the above conditions are met, attorneys' fees incurred by us in the defense of that indemnitee, necessary litigation expenses incurred by us and necessary litigation expenses incurred by the indemnitee at our request will be paid as Supplementary Payments. Notwithstanding the provisions of Paragraph 1.b.(b) of Section B. — Exclusions, such payments will not be deemed to be damages for "bodily injury" and "property damage" and will not reduce the Limits of Insurance. Our obligation to defend an insured's indemnitee and to pay for attorneys' fees and necessary litigation expenses as Supplementary Payments ends when: (1) We have used up the applicable limit of insurance in the payment of judgments or settlements; or (2) The conditions set forth above, or the terms of the agreement described in Paragraph (6) above, are no longer met. EXCLUSIONS 1. Applicable To Business Liability Coverage This insurance does not apply to: a. Expected Or Intended Injury (1) "Bodily injury" or "property damage" expected or intended from the standpoint of the insured. This exclusion does not apply to "bodily injury" or "property damage" resulting from the use of reasonable force to protect persons or property; or (2) "Personal and advertising injury" arising out of an offense committed by, at the direction of or with the consent or acquiescence of the insured with the expectation of inflicting "personal and advertising injury". b. Contractual Liability (1) "Bodily injury" or "property damage'; or (2) "Personal and advertising injury" for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages because of: (a) "Bodily injury", "property damage" or "personal and advertising injury" that the insured would have in the absence of the contract or agreement; or Form SS 00 08 04 05 Page 3 of 24 BUSINESS LIABILITY COVERAGE FORM (b) "Bodily injury" or "property damage" assumed in a contract or agreement that is an "insured contract ", provided the "bodily injury" or "property damage" occurs subsequent to the execution of the contract or agreement. Solely for the purpose of liability assumed in an "insured contract', reasonable attorneys' fees and necessary litigation expenses incurred by or for a party other than an insured are deemed to be damages because of "bodily injury" or "property damage" provided: (i) Liability to such party for, or for the cost of, that party's defense has also been assumed in the same "insured contract ", and (ii) Such attorneys' fees and litigation expenses are for defense of that party against a civil or alternative dispute resolution proceeding in which damages to which this insurance applies are alleged. c. Liquor Liability "Bodily injury" or "property damage" for which any insured may be held liable by reason of: (1) Causing or contributing to the intoxication of any person; (2) The furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or (3) Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages. This exclusion applies only if you are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. d. Workers' Compensation And Similar Laws Any obligation of the insured under a workers' compensation, disability benefits or unemployment compensation law or any similar law. e. Employer's Liability "Bodily injury" to: (1) An "employee" of the insured arising out of and in the course of: (a) Employment by the insured; or (b) Performing duties related to the conduct of the insured's business, or (2) The spouse, child, parent, brother or sister of that "employee" as a consequence of (1) above. This exclusion applies: (1) Whether the insured may be liable as an employer or in any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. This exclusion does not apply to liability assumed by the insured under an "insured contract ". f. Pollution (1) "Bodily injury", "property damage" or "personal and advertising injury" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants ": (a) At or from any premises, site or location which is or was at any time owned or occupied by, or rented or loaned to any insured. However, this subparagraph does not apply to: (i) "Bodily injury" if sustained within a building and caused by smoke, fumes, vapor or soot produced by or originating from equipment that is used to heat, cool or dehumidify the building, or equipment that is used to heat water for personal use, by the building's occupants or their guests; (ii) "Bodily injury" or "property damage" for which you may be held liable, if you are a contractor and the owner or lessee of such premises, site or location has been added to your policy as an additional insured with respect to your ongoing operations performed for that additional insured at that premises, site or location and such premises, site or location is not and never was owned or occupied by, or rented or loaned to, any insured, other than that additional insured; or Page 4 of 24 Form SS 00 08 04 05 BUSINESS LIABILITY COVERAGE FORM (iii) "Bodily injury" or "property released as part of the damage" arising out of heat, operations being performed smoke or fumes from a by such insured, contractor or "hostile fire "; subcontractor; (b) At or from any premises, site or (ii) "Bodily injury" or "property location which is or was at any damage" sustained within a time used by or for any insured or building and caused by the others for the handling, storage, release of gases, fumes or disposal, processing or treatment vapors from materials brought of waste; into that building in connection (c) Which are or were at any time with operations being performed transported, handled, stored, by you or on your behalf by a treated, disposed of, or processed contractor or subcontractor; or as waste by or for: (iii) "Bodily injury" or "property (i) Any insured; or damage" arising out of heat, (ii) Any person or organization for smoke or fumes from a "hostile "; whom you may be legally fire or responsible; (e) At or from any premises, site or (d) At or from any premises, site or location on which any insured or any location on which any insured or contractors or subcontractors any contractors or subcontractors working directly or indirectly on any working directly or indirectly on insured's behalf are performing any insured's behalf are operations if the operations are to performing operations if the test for, monitor, clean up, remove, "pollutants" are brought on or to contain, treat, detoxify or neutralize, the premises, site or location in or in any way respond to, or assess "pollutants ". connection with such operations the effects of, by such insured, contractor or (2) Any loss, cost or expense arising out subcontractor. However, this of any: subparagraph does not apply to: (a) Request, demand, order or statutory (i) "Bodily injury" or "property or regulatory requirement that any damage" arising out of the insured or others test for, monitor, escape of fuels, lubricants or clean up, remove, contain, treat, other operating fluids which are detoxify or neutralize, or in any way needed to perform the normal respond to, or assess the effects of, electrical, hydraulic or "pollutants'; or mechanical functions (b) Claim or suit by or on behalf of a necessary for the operation of governmental authority for "mobile equipment" or its parts, damages because of testing for, if such fuels, lubricants or other monitoring, cleaning up, removing, operating fluids escape from a containing, treating, detoxifying or vehicle part designed to hold, neutralizing, or in any way store or receive them. This responding to, or assessing the exception does not apply if the effects of, "pollutants ". "bodily injury" or "property However, this paragraph does not damage" arises out of the apply to liability for damages because intentional discharge, dispersal of "property damage" that the insured or release of the fuels, would have in the absence of such lubricants or other operating request, demand, order or statutory or fluids, or if such fuels, regulatory requirement, or such claim lubricants or other operating or "suit" by or on behalf of a fluids are brought on or to the governmental authority. premises, site or location with the intent that they be discharged, dispersed or Form SS 00 08 04 05 Page 5 of 24 BUSINESS LIABILITY COVERAGE FORM g. Aircraft, Auto Or Watercraft "Bodily injury" or "property damage" arising out of the ownership, maintenance, use or entrustment to others of any aircraft, "auto" or watercraft owned or operated by or rented or loaned to any insured. Use includes operation and "loading or unloading ". This exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that insured, if the "occurrence" which caused the "bodily injury" or "property damage" involved the ownership, maintenance, use or entrustment to others of any aircraft, "auto" or watercraft that is owned or operated by or rented or loaned to any insured. This exclusion does not apply to: (1) A watercraft while ashore on premises you own or rent; (2) A watercraft you do not own that is: (a) Less than 51 feet long; and (b) Not being used to carry persons for a charge; (3) Parking an "auto" on, or on the ways next to, premises you own or rent, provided the "auto" is not owned by or rented or loaned to you or the insured; (4) Liability assumed under any "insured contract" for the ownership, maintenance or use of aircraft or watercraft; (5) "Bodily injury" or "property damage" arising out of the operation of any of the equipment listed in Paragraph f.(2) or f.(3) of the definition of "mobile equipment "; or (6) An aircraft that is not owned by any insured and is hired, chartered or loaned with a paid crew. However, this exception does not apply if the insured has any other insurance for such "bodily injury" or "property damage ", whether the other insurance is primary, excess, contingent or on any other basis. h. Mobile Equipment "Bodily injury" or "property damage" arising out of: (1) The transportation of "mobile equipment' by an "auto" owned or operated by or rented or loaned to any insured; or (2) The use of "mobile equipment" in, or while in practice or preparation for, a prearranged racing, speed or demolition contest or in any stunting activity. I. War "Bodily injury", "property damage" or "personal and advertising injury", however caused, arising, directly or indirectly, out of: (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, or action taken by governmental authority in hindering or defending against any of these. Professional Services "Bodily injury", "property damage" or "personal and advertising injury" arising out of the rendering of or failure to render any professional service. This includes but is not limited to: (1) Legal, accounting or advertising services; (2) Preparing, approving, or failing to prepare or approve maps, shop drawings, opinions, reports, surveys, field orders, change orders, designs or drawings and specifications; (3) Supervisory, inspection, architectural or engineering activities; (4) Medical, surgical, dental, x -ray or nursing services treatment, advice or instruction; (5) Any health or therapeutic service treatment, advice or instruction; (6) Any service, treatment, advice or instruction for the purpose of appearance or skin enhancement, hair removal or replacement or personal grooming; (7) Optical or hearing aid services including the prescribing, preparation, fitting, demonstration or distribution of ophthalmic lenses and similar products or hearing aid devices; Page 6 of 24 Form SS 00 08 04 05 (8) Optometry or optometric services including but not limited to examination of the eyes and the prescribing, preparation, fitting, demonstration or distribution of ophthalmic lenses and similar products; (9) Any: (a) Body piercing (not including ear piercing); (b) Tattooing, including but not limited to the insertion of pigments into or under the skin; and (c) Similar services; (10) Services in the practice of pharmacy; and (11) Computer consulting, design or programming services, including web site design. Paragraphs (4) and (5) of this exclusion do not apply to the Incidental Medical Malpractice coverage afforded under Paragraph 1.e. in Section A. - Coverages. k. Damage To Property "Property damage" to: (1) Property you own, rent or occupy, including any costs or expenses incurred by you, or any other person, organization or entity, for repair, replacement, enhancement, restoration or maintenance of such property for any reason, including prevention of injury to a person or damage to another's property; (2) Premises you sell, give away or abandon, if the "property damage" arises out of any part of those premises; (3) Property loaned to you; (4) Personal property in the care, custody or control of the insured; (5) That particular part of real property on which you or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the "property damage" arises out of those operations; or (6) That particular part of any property that must be restored, repaired or replaced because "your work" was incorrectly performed on it. BUSINESS LIABILITY COVERAGE FORM Paragraphs (1), (3) and (4) of this exclusion do not apply to "property damage" (other than damage by fire) to premises, including the contents of such premises, rented to you for a period of 7 or fewer consecutive days. A separate Limit of Insurance applies to Damage To Premises Rented To You as described in Section D. - Limits Of Insurance. Paragraph (2) of this exclusion does not apply if the premises are "your work" and were never occupied, rented or held for rental by you. Paragraphs (3) and (4) of this exclusion do not apply to the use of elevators. Paragraphs (3), (4), (5) and (6) of this exclusion do not apply to liability assumed under a sidetrack agreement. Paragraphs (3) and (4) of this exclusion do not apply to "property damage" to borrowed equipment while not being used to perform operations at a job site. Paragraph (6) of this exclusion does not apply to "property damage" included in the "products- completed operations hazard ". I. Damage To Your Product "Property damage" to "your product' arising out of it or any part of it. m. Damage To Your Work "Property damage" to "your work" arising out of it or any part of it and included in the "products- completed operations hazard ". This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor. n. Damage To Impaired Property Or Property Not Physically Injured "Property damage" to "impaired property" or property that has not been physically injured, arising out of: (1) A defect, deficiency, inadequacy or dangerous condition in "your product" or "your work "; or (2) A delay or failure by you or anyone acting on your behalf to perform a contract or agreement in accordance with its terms. This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to "your product" or "your work" after it has been put to its intended use. Form SS 00 08 04 05 Page 7 of 24 BUSINESS LIABILITY COVERAGE FORM o. Recall Of Products, Work Or Impaired (c) Title of any literary or artistic work; Property (8) Arising out of an offense committed by Damages claimed for any loss, cost or an insured whose business is: expense incurred by you or others for the (a) Advertising, broadcasting, loss of use, withdrawal, recall, inspection, publishing or telecasting; repair, replacement, adjustment, removal (b) Designing or determining content or disposal of: of web sites for others; or (1) "Your product "; (c) An Internet search, access, (2) "Your work'; or content or service provider. (3) "Impaired property "; However, this exclusion does not if such product, work or property is apply to Paragraphs a., b. and c. withdrawn or recalled from the market or under the definition of "personal and from use by any person or organization advertising injury" in Section G. — because of a known or suspected defect, Liability And Medical Expenses deficiency, inadequacy or dangerous Definitions. condition in it. For the purposes of this exclusion, p. Personal And Advertising Injury placing an "advertisement" for or "Personal and advertising injury": linking to others on your web site, by (1) Arising out of oral, written or electronic itself, is not considered the business publication of material, if done by or at of advertising, broadcasting, the direction of the insured with publishing or telecasting; knowledge of its falsity; (9) Arising out of an electronic chat room (2) Arising out of oral, written or electronic or bulletin board the insured hosts, publication of material whose first owns, or over which the insured publication took place before the exercises control; beginning of the policy period; (10) Arising out of the unauthorized use of (3) Arising out of a criminal act committed another's name or product in your e-mail by or at the direction of the insured; address, domain name or metatags, or any other similar tactics to mislead (4) Arising out of any breach of contract, another's potential customers; except an implied contract to use "advertising (11) Arising out of the violation of a another's idea" in your "advertisement"; privacy created by any fate o9federa (5) Arising out of the failure of goods, products or services to conform with However, this exclusion does not any statement quality or apply to liability for damages that the performance made a in your insured would have in the absence of "advertisement "; such state or federal act; (6) Arising out of the wrong description of (12) Arising out of: the price of goods, products or services; (a) An "advertisement" for others on (7) Arising out of any violation of any your web site; intellectual property rights such as (b) Placing a link to a web site of copyright, patent, trademark, trade others on your web site; name, trade secret, service mark or (c) Content from a web site of others other designation of origin or displayed within a frame or border authenticity. on your web site. Content includes However, this exclusion does not information, code, sounds, text, apply to infringement, in your graphics or images; or "advertisement', of (d) Computer code, software or (a) Copyright; programming used to enable: (b) Slogan, unless the slogan is also (i) Your web site; or a trademark, trade name, service (ii) The presentation or functionality mark or other designation of origin of an "advertisement" or other or authenticity; or content on your web site; Page 8 of 24 Form SS 00 08 04 05 (13) Arising out of a violation of any anti- trust law; (14) Arising out of the fluctuation in price or value of any stocks, bonds or other securities; or (15) Arising out of discrimination or humiliation committed by or at the direction of any "executive officer ", director, stockholder, partner or member of the insured. q. Electronic Data Damages arising out of the loss of, loss of use of, damage to, corruption of, inability to access, or inability to manipulate "electronic data ". r. Employment - Related Practices "Bodily injury" or "personal and advertising injury" to: (1) A person arising out of any: (a) Refusal to employ that person; (b) Termination of that person's employment; or (c) Employment - related practices, policies, acts or omissions, such as coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation or discrimination directed at that person; or (2) The spouse, child, parent, brother or sister of that person as a consequence of "bodily injury" or "personal and advertising injury" to the person at whom any of the employment - related practices described in Paragraphs (a), (b), or (c) above is directed. This exclusion applies: (1) Whether the insured may be liable as an employer or in any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. s. Asbestos (1) "Bodily injury", "property damage" or "personal and advertising injury" arising out of the "asbestos hazard ". (2) Any damages, judgments, settlements, loss, costs or expenses that: BUSINESS LIABILITY COVERAGE FORM (a) May be awarded or incurred by reason of any claim or suit alleging actual or threatened injury or damage of any nature or kind to persons or property which would not have occurred in whole or in part but for the "asbestos hazard "; (b) Arise out of any request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean up, remove, encapsulate, contain, treat, detoxify or neutralize or in any way respond to or assess the effects of an "asbestos hazard "; or (c) Arise out of any claim or suit for damages because of testing for, monitoring, cleaning up, removing, encapsulating, containing, treating, detoxifying or neutralizing or in any way responding to or assessing the effects of an "asbestos hazard ". It. Violation Of Statutes That Govern E- Mails, Fax, Phone Calls Or Other Methods Of Sending Material Or Information "Bodily injury", "property damage ", or "personal and advertising injury" arising directly or indirectly out of any action or omission that violates or is alleged to violate: (1) The Telephone Consumer Protection Act (TCPA), including any amendment of or addition to such law; (2) The CAN -SPAM Act of 2003, including any amendment of or addition to such law; or (3) Any statute, ordinance or regulation, other than the TCPA or CAN -SPAM Act of 2003, that prohibits or limits the sending, transmitting, communicating or distribution of material or information. Damage To Premises Rented To You — Exception For Damage By Fire, Lightning or Explosion Exclusions c. through h. and k. through o. do not apply to damage by fire, lightning or explosion to premises rented to you or temporarily occupied by you with permission of the owner. A separate Limit of Insurance applies to this coverage as described in Section D. - Liability And Medical Expenses Limits Of Insurance. Form SS 00 08 04 05 Page 9 of 24 BUSINESS LIABILITY COVERAGE FORM 2. Applicable To Medical Expenses Coverage We will not pay expenses for "bodily injury": a. Any Insured To any insured, except "volunteer workers ". b. Hired Person To a person hired to do work for or on behalf of any insured or a tenant of any insured. c. Injury On Normally Occupied Premises To a person injured on that part of premises you own or rent that the person normally occupies. d. Workers' Compensation And Similar Laws To a person, whether or not an "employee" of any insured, if benefits for the "bodily injury" are payable or must be provided under a workers' compensation or disability benefits law or a similar law. e. Athletics Activities To a person injured while practicing, instructing or participating in any physical exercises or games, sports or athletic contests. f. Products - Completed Operations Hazard Included with the "products- completed operations hazard ". g. Business Liability Exclusions Excluded under Business Liability Coverage. C. WHO IS AN INSURED 1. If you are designated in the Declarations as: a. An individual, you and your spouse are insureds, but only with respect to the conduct of a business of which you are the sole owner. b. A partnership or joint venture, you are an insured. Your members, your partners, and their spouses are also insureds, but only with respect to the conduct of your business. c. A limited liability company, you are an insured. Your members are also insureds, but only with respect to the conduct of your business. Your managers are insureds, but only with respect to their duties as your managers. d. An organization other than a partnership, joint venture or limited liability company, you are an insured. Your "executive officers" and directors are insureds, but only with respect to their duties as your officers or directors. Your stockholders are also insureds, but only with respect to their liability as stockholders. e. A trust, you are an insured. Your trustees are also insureds, but only with respect to their duties as trustees. 2. Each of the following is also an insured: a. Employees And Volunteer Workers Your "volunteer workers" only while performing duties related to the conduct of your business, or your "employees ", other than either your "executive officers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these "employees" or "volunteer workers" are insureds for: (1) "Bodily injury" or "personal and advertising injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), or to a co-"employee" while in the course of his or. her employment or performing duties related to the conduct of your business, or to your other "volunteer workers" while performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co- "employee" or that "volunteer worker" as a consequence of Paragraph (1)(a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in Paragraphs (1)(a) or (b) above; or (d) Arising out of his or her providing or failing to provide professional health care services. If you are not in the business of providing professional health care services, Paragraph (d) does not apply to any nurse, emergency medical technician or paramedic employed by you to provide such services. (2) "Property damage" to property: (a) Owned, occupied or used by, Page 10 of 24 Form SS 00 08 04 05 (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by you, any of your "employees ", "volunteer workers ", any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). b. Real Estate Manager Any person (other than your "employee" or "volunteer worker "), or any organization while acting as your real estate manager. c. Temporary Custodians Of Your Property Any person or organization having proper temporary custody of your property if you die, but only: (1) With respect to liability arising out of the maintenance or use of that property; and (2) Until your legal representative has been appointed. d. Legal Representative If You Die Your legal representative if you die, but only with respect to duties as such. That representative will have all your rights and duties under this insurance. e. Unnamed Subsidiary Any subsidiary and subsidiary thereof, of yours which is a legally incorporated entity of which you own a financial interest of more than 50% of the voting stock on the effective date of this Coverage Part. The insurance afforded herein for any subsidiary not shown in the Declarations as a named insured does not apply to injury or damage with respect to which an insured under this insurance is also an insured under another policy or would be an insured under such policy but for its termination or upon the exhaustion of its limits of insurance. 3. Newly Acquired Or Formed Organization Any organization you newly acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain financial interest of more than 50% of the voting stock, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the 180th day after you acquire or form the organization or the end of the policy period, whichever is earlier; and BUSINESS LIABILITY COVERAGE FORM b. Coverage under this provision does not apply to: (1) "Bodily injury" or "property damage" that occurred; or (2) "Personal and advertising injury" arising out of an offense committed before you acquired or formed the organization. 4. Operator Of Mobile Equipment With respect to "mobile equipment' registered in your name under any motor vehicle registration law, any person is an insured while driving such equipment along a public highway with your permission. Any other person or organization responsible for the conduct of such person is also an insured, but only with respect to liability arising out of the operation of the equipment, and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an insured with respect to: a. 'Bodily injury" to a co-"employee" of the person driving the equipment; or b. 'Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an insured under this provision. 5. Operator of Nonowned Watercraft With respect to watercraft you do not own that is less than 51 feet long and is not being used to carry persons for a charge, any person is an insured while operating such watercraft with your permission. Any other person or organization responsible for the conduct of such person is also an insured, but only with respect to liability arising out of the operation of the watercraft, and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an insured with respect to: a. 'Bodily injury" to a co-"employee" of the person operating the watercraft; or b. 'Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an insured under this provision. Additional Insureds When Required By Written Contract, Written Agreement Or Permit The person(s) or organization(s) identified in Paragraphs a. through f. below are additional insureds when you have agreed, in a written Form SS 00 08 04 05 Page 11 of 24 BUSINESS LIABILITY COVERAGE FORM contract, written agreement or because of a (e) Any failure to make such permit issued by a state or political inspections, adjustments, tests or subdivision, that such person or organization servicing as the vendor has be added as an additional insured on your agreed to make or normally policy, provided the injury or damage occurs undertakes to make in the usual subsequent to the execution of the contract or course of business, in connection agreement, or the issuance of the permit. with the distribution or sale of the A person or organization is an additional products; insured under this provision only for that (f) Demonstration, installation, period of time required by the contract, servicing or repair operations, agreement or permit. except such operations performed at the vendor's premises in However, no such person or organization is an connection with the sale of the additional insured under this provision if such product; person or organization is included as an additional insured by an endorsement issued (g) Products which, after distribution by us and made a part of this Coverage Part, or sale by you, have been labeled including all persons or organizations added or relabeled or used as a as additional insureds under the specific container, part or ingredient of any additional insured coverage grants in Section other thing or substance by or for F. — Optional Additional Insured Coverages. the vendor; or a. Vendors (h) "Bodily injury" or "property damage" arising out of the sole Any person(s) or organization(s) (referred to negligence of the vendor for its below as vendor), but only with respect to own acts or omissions or those of "bodily injury" or "property damage" arising its an or employees one else y out of "your products" which are distributed acting on its behalf. However, this or sold in the regular course of the vendor's exclusi on does not apply to: business and only if this Coverage Part provides coverage for "bodily injury" or (i) The exceptions contained in "property damage" included within the Subparagraphs (d) or (f); or "products -completed operations hazard ". (ii) Such inspections, adjustments, (1) The insurance afforded to the vendor tests or servicing as the vendor is subject to the following additional has agreed to make or normally exclusions: undertakes to make in the usual course of business, in This insurance does not apply to: connection with the distribution (a) "Bodily injury" or "property or sale of the products. damage" for which the vendor is (2) This insurance does not apply to any obligated to pay damages by insured person or organization from reason of the assumption of whom you have acquired such products, liability in a contract or agreement. or any ingredient, part or container, This exclusion does not apply to entering into, accompanying or liability for damages that the containing such products. vendor would have in the absence of the contract or agreement; b. Lessors Of Equipment (b) Any express warranty (1) Any person or organization from unauthorized by you; whom you lease equipment; but only with respect to their liability for "bodily (c) Any physical or chemical change injury", "property damage" or in the product made intentionally "personal and advertising injury" by the vendor; caused, in whole or in part, by your (d) Repackaging, except when maintenance, operation or use of unpacked solely for the purpose of equipment leased to you by such inspection, demonstration, testing, person or organization. or the substitution of parts under instructions from the manufacturer, and then repackaged in the original container; Page 12 of 24 Form SS 00 08 04 05 (2) With respect to the insurance afforded to these additional insureds, this insurance does not apply to any "occurrence" which takes place after you cease to lease that equipment. c. Lessors Of Land Or Premises (1) Any person or organization from whom you lease land or premises, but only with respect to liability arising out of the ownership, maintenance or use of that part of the land or premises leased to you. (2) With respect to the insurance afforded to these additional insureds, this insurance does not apply to: (a) Any "occurrence" which takes place after you cease to lease that land or be a tenant in that premises; or BUSINESS LIABILITY COVERAGE FORM e. Permits Issued By State Or Political Subdivisions (1) Any state or political subdivision, but only with respect to operations performed by you or on your behalf for which the state or political subdivision has issued a permit. (2) With respect to the insurance afforded to these additional insureds, this insurance does not apply to: (a) "Bodily injury", "property damage" or "personal and advertising injury" arising out of operations performed for the state or municipality; or (b) "Bodily injury" or "property damage" included within the "products - completed operations hazard ". f. Any Other Party (b) Structural alterations, new (1) Any other person or organization who construction or demolition is not an insured under Paragraphs a. operations performed by or on through e. above, but only with behalf of such person or respect to liability for "bodily injury", organization. "property damage" or "personal and d. Architects, Engineers Or Surveyors advertising injury" caused, in whole or (1) Any architect, engineer, or surveyor, but in part, by your acts or omissions or only with respect to liability for "bodily the acts or omissions of those acting injury", "property damage" or "personal on your behalf: and advertising injury" caused, in whole (a) In the performance of your or in part, by your acts or omissions or ongoing operations; the acts or omissions of those acting on (b) In connection with your premises your behalf: owned by or rented to you; or (a) In connection with your premises; (c) In connection with "your work" and or included within the "products - (b) In the performance of your completed operations hazard ", but ongoing operations performed by only if you or on your behalf. (1) The written contract or written (2) With respect to the insurance afforded agreement requires you to to these additional insureds, the provide such coverage to following additional exclusion applies: such additional insured; and This insurance does not apply to (ii) This Coverage Part provides "bodily injury", "property damage" or coverage for "bodily injury" or "personal and advertising injury" "property damage" included arising out of the rendering of or the within the "products - failure to render any professional completed operations hazard ". services by or for you, including: (2) With respect to the insurance afforded (a) The preparing, approving, or to these additional insureds, this failure to prepare or approve, insurance does not apply to: maps, shop drawings, opinions, "Bodily injury", "property damage" or reports, surveys, field orders, "personal and advertising injury" change orders, designs or arising out of the rendering of, or the drawings and specifications; or failure to render, any professional (b) Supervisory, inspection, architectural, engineering or surveying architectural or engineering services, including: activities. Form SS 00 08 04 05 Page 13 of 24 BUSINESS LIABILITY COVERAGE FORM (a) The preparing, approving, or failure to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders, designs or drawings and specifications; or (b) Supervisory, inspection, architectural or engineering activities. The limits of insurance that apply to additional insureds are described in Section D. — Limits Of Insurance. How this insurance applies when other insurance is available to an additional insured is described in the Other Insurance Condition in Section E. — Liability And Medical Expenses General Conditions. No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations. D. LIABILITY AND MEDICAL EXPENSES LIMITS OF INSURANCE 1. The Most We Will Pay The Limits of Insurance shown in the Declarations and the rules below fix the most we will pay regardless of the number of: a. Insureds; b. Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suits ". 2. Aggregate Limits The most we will pay for: a. Damages because of "bodily injury" and "property damage" included in the "products- completed operations hazard" is the Products - Completed Operations Aggregate Limit shown in the Declarations. b. Damages because of all other "bodily injury", "property damage" or "personal and advertising injury", including medical expenses, is the General Aggregate Limit shown in the Declarations. This General Aggregate Limit applies separately to each of your "locations" owned by or rented to you. "Location" means premises involving the same or connecting lots, or premises whose connection is interrupted only by a street, roadway or right -of -way of a railroad. This General Aggregate limit does not apply to "property damage" to premises while rented to you or temporarily occupied by you with permission of the owner, arising out of fire, lightning or explosion. 3. Each Occurrence Limit Subject to 2.a. or 2.b above, whichever applies, the most we will pay for the sum of all damages because of all "bodily injury", "property damage" and medical expenses arising out of any one "occurrence" is the Liability and Medical Expenses Limit shown in the Declarations. The most we will pay for all medical expenses because of "bodily injury" sustained by any one person is the Medical Expenses Limit shown in the Declarations. 4. Personal And Advertising Injury Limit Subject to 2.b. above, the most we will pay for the sum of all damages because of all "personal and advertising injury" sustained by any one person or organization is the Personal and Advertising Injury Limit shown in the Declarations. 5. Damage To Premises Rented To You Limit The Damage To Premises Rented To You Limit is the most we will pay under Business Liability Coverage for damages because of "property damage" to any one premises, while rented to you, or in the case of damage by fire, lightning or explosion, while rented to you or temporarily occupied by you with permission of the owner. In the case of damage by fire, lightning or explosion, the Damage to Premises Rented To You Limit applies to all damage proximately caused by the same event, whether such damage results from fire, lightning or explosion or any combination of these. 6. How Limits Apply To Additional Insureds The most we will pay on behalf of a person or organization who is an additional insured under this Coverage Part is the lesser of: a. The limits of insurance specified in a written contract, written agreement or permit issued by a state or political subdivision; or b. The Limits of Insurance shown in the Declarations. Such amount shall be a part of and not in addition to the Limits of Insurance shown in the Declarations and described in this Section. Page 14 of 24 Form SS 00 08 04 05 If more than one limit of insurance under this policy and any endorsements attached thereto applies to any claim or "suit ", the most we will pay under this policy and the endorsements is the single highest limit of liability of all coverages applicable to such claim or "suit ". However, this paragraph does not apply to the Medical Expenses limit set forth in Paragraph 3. above. The Limits of Insurance of this Coverage Part apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance. E. LIABILITY AND MEDICAL EXPENSES GENERAL CONDITIONS 1. Bankruptcy Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obligations under this Coverage Part. 2. Duties In The Event Of Occurrence, Offense, Claim Or Suit a. Notice Of Occurrence Or Offense You or any additional insured must see to it that we are notified as soon as practicable of an "occurrence" or an offense which may result in a claim. To the extent possible, notice should include: (1) How, when and where the "occurrence" or offense took place; (2) The names and addresses of any injured persons and witnesses; and (3) The nature and location of any injury or damage arising out of the "occurrence" or offense. b. Notice Of Claim If a claim is made or "suit" is brought against any insured, you or any additional insured must: (1) Immediately record the specifics of the claim or "suit" and the date received; and (2) Notify us as soon as practicable. You or any additional insured must see to it that we receive a written notice of the claim or "suit" as soon as practicable. c. Assistance And Cooperation Of The Insured You and any other involved insured must: BUSINESS LIABILITY COVERAGE FORM (1) Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or "suit "; (2) Authorize us to obtain records and other information; (3) Cooperate with us in the investigation, settlement of the claim or defense against the "suit "; and (4) Assist us, upon our request, in the enforcement of any right against any person or organization that may be liable to the insured because of injury or damage to which this insurance may also apply. d. Obligations At The Insured's Own Cost No insured will, except at that insured's own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent. e. Additional Insured's Other Insurance If we cover a claim or "suit" under this Coverage Part that may also be covered by other insurance available to an additional insured, such additional insured must submit such claim or "suit" to the other insurer for defense and indemnity. However, this provision does not apply to the extent that you have agreed in a written contract, written agreement or permit that this insurance is primary and non - contributory with the additional insured's own insurance. f. Knowledge Of An Occurrence, Offense, Claim Or Suit Paragraphs a. and b. apply to you or to any additional insured only when such "occurrence ", offense, claim or "suit" is known to: (1) You or any additional insured that is an individual; (2) Any partner, if you or an additional insured is a partnership; (3) Any manager, if you or an additional insured is a limited liability company; (4) Any "executive officer" or insurance manager, if you or an additional insured is a corporation; (5) Any trustee, if you or an additional insured is a trust; or (6) Any elected or appointed official, if you or an additional insured is a political subdivision or public entity. Form SS 00 08 04 05 Page 15 of 24 BUSINESS LIABILITY COVERAGE FORM This Paragraph f. applies separately to you and any additional insured. 3. Financial Responsibility Laws a. When this policy is certified as proof of financial responsibility for the future under the provisions of any motor vehicle financial responsibility law, the insurance provided by the policy for "bodily injury" liability and "property damage" liability will comply with the provisions of the law to the extent of the coverage and limits of insurance required by that law. b. With respect to "mobile equipment" to which this insurance applies, we will provide any liability, uninsured motorists, underinsured motorists, no -fault or other coverage required by any motor vehicle law. We will provide the required limits for those coverages. 4. Legal Action Against Us No person or organization has a right under this Coverage Form: a. To join us as a party or otherwise bring us into a "suit" asking for damages from an insured; or b. To sue us on this Coverage Form unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured; but we will not be liable for damages that are not payable under the terms of this insurance or that are in excess of the applicable limit of insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal representative. 5. Separation Of Insureds Except with respect to the Limits of Insurance, and any rights or duties specifically assigned in this policy to the first Named Insured, this insurance applies: a. As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom a claim is made or "suit" is brought. 6. Representations a. When You Accept This Policy By accepting this policy, you agree: (1) The statements in the Declarations are accurate and complete; (2) Those statements are based upon representations you made to us; and (3) We have issued this policy in reliance upon your representations. b. Unintentional Failure To Disclose Hazards If unintentionally you should fail to disclose all hazards relating to the conduct of your business at the inception date of this Coverage Part, we shall not deny any coverage under this Coverage Part because of such failure. 7. Other Insurance If other valid and collectible insurance is available for a loss we cover under this Coverage Part, our obligations are limited as follows: a. Primary Insurance This insurance is primary except when b. below applies. If other insurance is also primary, we will share with all that other insurance by the method described in c. below. b. Excess Insurance This insurance is excess over any of the other insurance, whether primary, excess, contingent or on any other basis: (1) Your Work That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for "your work "; (2) Premises Rented To You That is fire, lightning or explosion insurance for premises rented to you or temporarily occupied by you with permission of the owner; (3) Tenant Liability That is insurance purchased by you to cover your liability as a tenant for "property damage" to premises rented to you or temporarily occupied by you with permission of the owner; (4) Aircraft, Auto Or Watercraft If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to Exclusion g. of Section A. — Coverages. (5) Property Damage To Borrowed Equipment Or Use Of Elevators If the loss arises out of "property damage" to borrowed equipment or the use of elevators to the extent not subject to Exclusion k. of Section A. — Coverages. Page 16 of 24 Form SS 00 08 04 05 (6) When You Are Added As An Additional Insured To Other Insurance That is other insurance available to you covering liability for damages arising out of the premises or operations, or products and completed operations, for which you have been added as an additional insured by that insurance; or (7) When You Add Others As An Additional Insured To This Insurance That is other insurance available to an additional insured. However, the following provisions apply to other insurance available to any person or organization who is an additional insured under this Coverage Part: (a) Primary Insurance When Required By Contract This insurance is primary if you have agreed in a written contract, written agreement or permit that this insurance be primary. If other insurance is also primary, we will share with all that other insurance by the method described in c. below. (b) Primary And Non - Contributory To Other Insurance When Required By Contract If you have agreed in a written contract, written agreement or permit that this insurance is primary and non - contributory with the additional insured's own insurance, this insurance is primary and we will not seek contribution from that other insurance. Paragraphs (a) and (b) do not apply to other insurance to which the additional insured has been added as an additional insured. When this insurance is excess, we will have no duty under this Coverage Part to defend the insured against any "suit" if any other insurer has a duty to defend the insured against that "suit ". If no other insurer defends, we will undertake to do so, but we will be entitled to the insured's rights against all those other insurers. BUSINESS LIABILITY COVERAGE FORM When this insurance is excess over other insurance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of: (1) The total amount that all such other insurance would pay for the loss in the absence of this insurance; and (2) The total of all deductible and self - insured amounts under all that other insurance. We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations of this Coverage Part. c. Method Of Sharing If all the other insurance permits contribution by equal shares, we will follow this method also. Under this approach, each insurer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first. If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers. 8. Transfer Of Rights Of Recovery Against Others To Us a. Transfer Of Rights Of Recovery If the insured has rights to recover all or part of any payment, including Supplementary Payments, we have made under this Coverage Part, those rights are transferred to us. The insured must do nothing after loss to impair them. At our request, the insured will bring "suit" or transfer those rights to us and help us enforce them. This condition does not apply to Medical Expenses Coverage. b. Waiver Of Rights Of Recovery (Waiver Of Subrogation) If the insured has waived any rights of recovery against any person or organization for all or part of any payment, including Supplementary Payments, we have made under this Coverage Part, we also waive that right, provided the insured waived their rights of recovery against such person or organization in a contract, agreement or permit that was executed prior to the injury or damage. Form SS 00 08 04 05 Page 17 of 24 BUSINESS LIABILITY COVERAGE FORM F. OPTIONAL ADDITIONAL INSURED COVERAGES If listed or shown as applicable in the Declarations, one or more of the following Optional Additional Insured Coverages also apply. When any of these Optional Additional Insured Coverages apply, Paragraph 6. (Additional Insureds When Required by Written Contract, Written Agreement or Permit) of Section C., Who Is An Insured, does not apply to the person or organization shown in the Declarations. These coverages are subject to the terms and conditions applicable to Business Liability Coverage in this policy, except as provided below: 1. Additional Insured - Designated Person Or Organization WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: a. In the performance of your ongoing operations; or b. In connection with your premises owned by or rented to you. 2. Additional Insured - Managers Or Lessors Of Premises a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured - Designated Person Or Organization; but only with respect to liability arising out of the ownership, maintenance or use of that part of the premises leased to you and shown in the Declarations. b. With respect to the insurance afforded to these additional insureds, the following additional exclusions apply: This insurance does not apply to: (1) Any "occurrence" which takes place after you cease to be a tenant in that premises; or (2) Structural alterations, new construction or demolition operations performed by or on behalf of such person or organization. 3. Additional Insured - Grantor Of Franchise WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured - Grantor Of Franchise, but only with respect to their liability as grantor of franchise to you. 4. Additional Insured - Lessor Of Leased Equipment a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured — Lessor of Leased Equipment, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your maintenance, operation or use of equipment leased to you by such person(s) or organization(s). b. With respect to the insurance afforded to these additional insureds, this insurance does not apply to any "occurrence" which takes place after you cease to lease that equipment. 5. Additional Insured - Owners Or Other Interests From Whom Land Has Been Leased a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured — Owners Or Other Interests From Whom Land Has Been Leased, but only with respect to liability arising out of the ownership, maintenance or use of that part of the land leased to you and shown in the Declarations. b. With respect to the insurance afforded to these additional insureds, the following additional exclusions apply: This insurance does not apply to: (1) Any "occurrence" that takes place after you cease to lease that land; or (2) Structural alterations, new construction or demolition operations performed by or on behalf of such person or organization. 6. Additional Insured - State Or Political Subdivision — Permits a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the state or political subdivision shown in the Declarations as an Additional Page 18 of 24 Form SS 00 08 04 05 BUSINESS LIABILITY COVERAGE FORM Insured — State Or Political Subdivision - (e) Any failure to make such Permits, but only with respect to inspections, adjustments, tests or operations performed by you or on your servicing as the vendor has agreed behalf for which the state or political to make or normally undertakes to subdivision has issued a permit. make in the usual course of b. With respect to the insurance afforded to business, in connection with the these additional insureds, the following distribution or sale of the products; additional exclusions apply: (f) Demonstration, installation, This insurance does not apply to: servicing or repair operations, except such operations performed (1) "Bodily injury", "property damage" or at the vendor's premises in "personal and advertising injury" connection with the sale of the arising out of operations performed for product; the state or municipality; or (g) Products which, after distribution (2) "Bodily injury" or "property damage" or sale by you, have been labeled included in the "product- completed or relabeled or used as a operations" hazard. container, part or ingredient of any 7. Additional Insured —Vendors other thing or substance by or for a. WHO IS AN INSURED under Section C. is the vendor; or amended to include as an additional (h) "Bodily injury" or "property insured the person(s) or organization(s) damage" arising out of the sole (referred to below as vendor) shown in the negligence of the vendor for its Declarations as an Additional Insured - own acts or omissions or those of Vendor, but only with respect to "bodily its employees or anyone else injury" or "property damage" arising out of acting on its behalf. However, this "your products" which are distributed or exclusion does not apply to: sold in the regular course of the vendor's (i) The exceptions contained in business and only if this Coverage Part Subparagraphs d or f or () ()' provides coverage for "bodily injury" or "property damage" included within the (ii) Such inspections, "products- completed operations hazard ". adjustments, tests or servicing as the vendor has agreed to b. The insurance afforded to the vendor is make or normally undertakes subject to the following additional exclusions: to make in the usual course of (1) This insurance does not apply to: business, in connection with (a) "Bodily injury" or "property the distribution or sale of the damage" for which the vendor is products. obligated to pay damages by (2) This insurance does not apply to any reason of the assumption of insured person or organization from liability in a contract or agreement. whom you have acquired such This exclusion does not apply to products, or any ingredient, part or liability for damages that the container, entering into, vendor would have in the absence accompanying or containing such of the contract or agreement; products. (b) Any express warranty 8. Additional Insured — Controlling Interest unauthorized by you; WHO IS AN INSURED under Section C. is (c) Any physical or chemical change amended to include as an additional insured in the product made intentionally the person(s) or organization(s) shown in the by the vendor; Declarations as an Additional Insured — (d) Repackaging, unless unpacked Controlling Interest, but only with respect to solely for the purpose of inspection, their liability arising out of: demonstration, testing, or the a. Their financial control of you; or substitution of parts under b. Premises they own, maintain or control instructions from the manufacturer, while you lease or occupy these premises. and then repackaged in the original container; Form SS 00 08 04 05 Page 19 of 24 BUSINESS LIABILITY COVERAGE FORM This insurance does not apply to structural alterations, new construction and demolition operations performed by or for that person or organization. 9. Additional Insured — Owners, Lessees Or Contractors — Scheduled Person Or Organization a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured — Owner, Lessees Or Contractors, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: (1) In the performance of your ongoing operations for the additional insured(s); or (2) In connection with "your work" performed for that additional insured and included within the "products - completed operations hazard ", but only if this Coverage Part provides coverage for "bodily injury" or "property damage" included within the "products- completed operations hazard ". b. With respect to the insurance afforded to these additional insureds, this insurance does not apply to "bodily injury", "property damage" or "personal an advertising injury" arising out of the rendering of, or the failure to render, any professional architectural, engineering or surveying services, including: (1) The preparing, approving, or failure to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders, designs or drawings and specifications; or (2) Supervisory, inspection, architectural or engineering activities. 10. Additional Insured — Co -Owner Of Insured Premises WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or Organization(s) shown in the Declarations as an Additional Insured — Co- Owner Of Insured Premises, but only with respect to their liability as co -owner of the premises shown in the Declarations. The limits of insurance that apply to additional insureds are described in Section D. — Limits Of Insurance. How this insurance applies when other insurance is available to an additional insured is described in the Other Insurance Condition in Section E. — Liability And Medical Expenses General Conditions. G. LIABILITY AND MEDICAL EXPENSES DEFINITIONS 1. "Advertisement" means the widespread public dissemination of information or images that has the purpose of inducing the sale of goods, products or services through: a. (1) Radio; (2) Television; (3) Billboard; (4) Magazine; (5) Newspaper; b. The Internet, but only that part of a web site that is about goods, products or services for the purposes of inducing the sale of goods, products or services; or c. Any other publication that is given widespread public distribution. However, "advertisement" does not include: a. The design, printed material, information or images contained in, on or upon the packaging or labeling of any goods or products; or b. An interactive conversation between or among persons through a computer network. 2. "Advertising idea" means any idea for an "advertisement ". 3. "Asbestos hazard" means an exposure or threat of exposure to the actual or alleged properties of asbestos and includes the mere presence of asbestos in any form. 4. "Auto" means a land motor vehicle, trailer or semi - trailer designed for travel on public roads, including any attached machinery or equipment. But "auto" does not include "mobile equipment ". 5. "Bodily injury" means physical: a. Injury; b. Sickness; or c. Disease sustained by a person and, if arising out of the above, mental anguish or death at any time. 6. "Coverage territory" means: Page 20 of 24 Form SS 00 08 04 05 a. The United States of America (including its territories and possessions), Puerto Rico and Canada; b. International waters or airspace, but only if the injury or damage occurs in the course of travel or transportation between any places included in a. above; c. All other parts of the world if the injury or damage arises out of: (1) Goods or products made or sold by you in the territory described in a. above; (2) The activities of a person whose home is in the territory described in a. above, but is away for a short time on your business; or (3) "Personal and advertising injury" offenses that take place through the Internet or similar electronic means of communication provided the insured's responsibility to pay damages is determined in the United States of America (including its territories and possessions), Puerto Rico or Canada, in a "suit" on the merits according to the substantive law in such territory, or in a settlement we agree to. 7. "Electronic data" means information, facts or programs: a. Stored as or on; b. Created or used on; or c. Transmitted to or from computer software, including systems and applications software, hard or floppy disks, CD -ROMS, tapes, drives, cells, data processing devices or any other media which are used with electronically controlled equipment. 8. "Employee" includes a "leased worker ". "Employee" does not include a "temporary worker ". 9. "Executive officer" means a person holding any of the officer positions created by your charter, constitution, by -laws or any other similar governing document. 10. "Hostile fire" means one which becomes uncontrollable or breaks out from where it was intended to be. 11. "Impaired property" means tangible property, other than "your product" or "your work ", that cannot be used or is less useful because: a. It incorporates "your product" or "your work" that is known or thought to be defective, deficient, inadequate or dangerous; or BUSINESS LIABILITY COVERAGE FORM b. You have failed to fulfill the terms of a contract or agreement; if such property can be restored to use by: a. The repair, replacement, adjustment or removal of "your product" or "your work "; or b. Your fulfilling the terms of the contract or agreement. 12. "Insured contract" means: a. A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire, lightning or explosion to premises while rented to you or temporarily occupied by you with permission of the owner is subject to the Damage To Premises Rented To You limit described in Section D. — Liability and Medical Expenses Limits of Insurance. b. A sidetrack agreement; c. Any easement or license agreement, including an easement or license agreement in connection with construction or demolition operations on or within 50 feet of a railroad; d. Any obligation, as required by ordinance, to indemnify a municipality, except in connection with work for a municipality; e. An elevator maintenance agreement; or f. That part of any other contract or agreement pertaining to your business (including an indemnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another party to pay for "bodily injury" or "property damage" to a third person or organization, provided the "bodily injury" or "property damage" is caused, in whole or in part, by you or by those acting on your behalf. Tort liability means a liability that would be imposed by law in the absence of any contract or agreement. Paragraph f. includes that part of any contract or agreement that indemnifies a railroad for "bodily injury" or "property damage" arising out of construction or demolition operations within 50 feet of any railroad property and affecting any railroad bridge or trestle, tracks, road -beds, tunnel, underpass or crossing. However, Paragraph f. does not include that part of any contract or agreement: Form SS 00 08 04 05 Page 21 of 24 BUSINESS LIABILITY COVERAGE FORM (1) That indemnifies an architect, engineer or surveyor for injury or damage arising out of: (a) Preparing, approving or failing to prepare or approve maps, shop drawings, opinions, reports, surveys, field orders, change orders, designs or drawings and specifications; or (b) Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or damage; or (2) Under which the insured, if an architect, engineer or surveyor, assumes liability for an injury or damage arising out of the insured's rendering or failure to render professional services, including those listed in (1) above and supervisory, inspection, architectural or engineering activities. 13. "Leased worker" means a person leased to you by a labor leasing firm under an agreement between you and the labor leasing firm, to perform duties related to the conduct of your business. "Leased worker" does not include a "temporary worker". 14. "Loading or unloading" means the handling of property: a. After it is moved from the place where it is accepted for movement into or onto an aircraft, watercraft or "auto "; b. While it is in or on an aircraft, watercraft or "auto"; or c. While it is being moved from an aircraft, watercraft or "auto" to the place where it is finally delivered; but "loading or unloading" does not include the movement of property by means of a mechanical device, other than a hand truck, that is not attached to the aircraft, watercraft or "auto ". 15. "Mobile equipment" means any of the following types of land vehicles, including any attached machinery or equipment: a. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; b. Vehicles maintained for use solely on or next to premises you own or rent; c. Vehicles that travel on crawler treads; d. Vehicles, whether self - propelled or not, on which are permanently mounted: (1) Power cranes, shovels, loaders, diggers or drills; or (2) Road construction or resurfacing equipment such as graders, scrapers or rollers; e. Vehicles not described in a., b., c., or d. above that are not self - propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: (1) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment; or (2) Cherry pickers and similar devices used to raise or lower workers; f. Vehicles not described in a., b., c., or d. above maintained primarily for purposes other than the transportation of persons or cargo. However, self - propelled vehicles with the following types of permanently attached equipment are not "mobile equipment" but will be considered "autos ": (1) Equipment, of at least 1,000 pounds gross vehicle weight, designed primarily for: (a) Snow removal; (b) Road maintenance, but not construction or resurfacing; or (c) Street cleaning; (2) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and (3) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment. 16. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions. 17. "Personal and advertising injury" means injury, including consequential "bodily injury", arising out of one or more of the following offenses: a. False arrest, detention or imprisonment; b. Malicious prosecution; Page 22 of 24 Form SS 00 08 04 05 c. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that the person occupies, committed by or on behalf of its owner, landlord or lessor; d. Oral, written or electronic publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; e. Oral, written or electronic publication of material that violates a person's right of privacy; f. Copying, in your "advertisement ", a person's or organization's "advertising idea" or style of "advertisement "; g. Infringement of copyright, slogan, or title of any literary or artistic work, in your "advertisement "; or h. Discrimination or humiliation that results in injury to the feelings or reputation of a natural person. 18. "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. 19. "Products- completed operations hazard "; a. Includes all "bodily injury" and "property damage" occurring away from premises you own or rent and arising out of "your product' or "your work" except: (1) Products that are still in your physical possession; or (2) Work that has not yet been completed or abandoned. However, "your work" will be deemed to be completed at the earliest of the following times: (a) When all of the work called for in your contract has been completed. (b) When all of the work to be done at the job site has been completed if your contract calls for work at more than one job site. (c) When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or subcontractor working on the same project. BUSINESS LIABILITY COVERAGE FORM Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. The "bodily injury" or "property damage" must occur away from premises you own or rent, unless your business includes the selling, handling or distribution of "your product" for consumption on premises you own or rent. b. Does not include "bodily injury" or "property damage" arising out of: (1) The transportation of property, unless the injury or damage arises out of a condition in or on a vehicle not owned or operated by you, and that condition was created by the "loading or unloading" of that vehicle by any insured; or (2) The existence of tools, uninstalled equipment or abandoned or unused materials. 20. "Property damage" means: a. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or b. Loss of use of tangible property that is not physically injured. All such loss of use shall be deemed to occur at the time of "occurrence" that caused it. As used in this definition, "electronic data" is not tangible property. 21. "Suit" means a civil proceeding in which damages because of "bodily injury", "property damage" or "personal and advertising injury" to which this insurance applies are alleged. "Suit" includes: a. An arbitration proceeding in which such damages are claimed and to which the insured must submit or does submit with our consent; or b. Any other alternative dispute resolution proceeding in which such damages are claimed and to which the insured submits with our consent. 22. "Temporary worker' means a person who is furnished to you to substitute for a permanent "employee" on leave or to meet seasonal or short-term workload conditions. 23. "Volunteer worker" means a person who: a. Is not your "employee "; Form SS 00 08 04 05 Page 23 of 24 BUSINESS LIABILITY COVERAGE FORM b. Donates his or her work; c. Acts at the direction of and within the scope of duties determined by you; and d. Is not paid a fee, salary or other compensation by you or anyone else for their work performed for you. 24. "Your product ": a. Means: (1) Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by: (a) You; (b) Others trading under your name; or (c) A person or organization whose business or assets you have acquired; and (2) Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. b. Includes: (1) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your product "; and (2) The providing of or failure to provide warnings or instructions. c. Does not include vending machines or other property rented to or located for the use of others but not sold. 25. "Your work ": a. 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. b. 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. Page 24 of 24 Form SS 00 08 04 05 0 W `71A* FARMERS Auto Insurance Declaration a 1 N S U R A 114 C li,,, Policy Number: 18880 -91-46 Effective: 5/7/2015 12:01 AM Expiration: 11/7/2015 1 2:01 AM Named Insured(s): Nabeel Khatri Lubna Khatri 286 W Tu lip Tree Ave Orange, CA 92865 -1090 e -mail i )albrreI@gryia: l.ceam Address(es): inabe6@uc a,edU Underwritten By: Farmers Insurance Exchange 4680 Wilshire Boulevard Los Angeles, CA 90010 Household Drivers Name Mohamed Khatri Nabeel Khatri Vehicle Information Veh. # Year /Make /Model /VIN 1 2012Toyota Prius Plug in Hybrid 5D JTDKN3DP2C3008610 2 2004 Nissan Altima 4 Door 2.5 1 N4AL1 1 DX4C1 37749 Coverage Bodily Injury Liability Property Damage Liability Medical Coverage Uninsured Motorist Bodily Injury Comprehensive r i s /Fees Policy Premium $764.60 Fees ( "also see Information on Additional $1.76 Fees below) Policy Premium aind IFees This is not a bill. Your bill with the amount due will be mailed separately, Driver Status Name Covered Zahida Khatri Covered Lubna Khatri Limits (applicable to all vehicles) $50,000 each person $100,000 each accident $50,000 each accident $25,000 each person $50,000 each accident Coverage Deductible Comprehensive: $1,000 Collision: $1,000 Additional Equipment: Loss of Use: Comprehensive: Not Covered Collision: Not Covered Additional Equipment: Driver Status Covered Covered Limit $1,000 K4: $25 per day/ $500 max Not Covered Premiums by Vehicle Vehicle 1 Vehicle 2 $140.70 $358.10 Included Included Not Covered Not Covered $19.30 $39.90 $31.00 Not Covered fairmraeirsecoirn (Policy No. '18880- 91-46 Questions? Manage youir account: Cafl your argent. IRe e na Rijl wa niii as Go to www.farrners.com to access (7114)isd4- ;'fit2ore.mar all your account any time! rrijVivvarii@farmersagent.com 56 -6176 1st Edition 4 -14 3/11/2015 Page 1 of4 Declaration Page (continued) farirxmeirs „coin n IPollilcylft. 18880- 91-46 uestioins Mainage youiraccourintm C alb grow aag;gu vV Illeeirn a IRiijhw aanu fl. r.'po to v,rmN.frairrneirs.corn to access (;r14)074 ./60 a it cin4 your account any time! rriftNaini@faarrinorsaxtge int.com 56 -6176 1st Edition 4-14 Page 2 of 4 Limits Premiums by Vehicle Coverage (applicable to all vehicles) Vehicle 1 Vehicle 2 Collision $117.80 Not Covered Additional Equipment Included Not Covered Uninsured Motorist Property See EndorsementCAO5O, Not Covered $12.30 Damage Without Collision coverage C -1 Uninsured Motorist Property See Endorsement CAO5O, $5.70 Not Covered Damage With Collision coverage C -2 Towing and Road Service Not Covered Not Covered Vehicle Manufacturer $5.00 Not Covered Replacement Parts - Comprehensive Vehicle Manufacturer $18.80 Not Covered Replacement Parts - Collision Glass Deductible Buyback $3.10 Not Covered Loss of Use $12.90 Not Covered Total Premium Per Vehicle m . ... ...... $354.30 ............................... ......................... __ .... ... .......m $410.30 __._...�... ---- Policy Premium ------ .......................................................................................................................................................................................................................................................................................... $764.60 Fee Detail Vehicle 1 Vehicle Total Anti -Fraud Fee $0.88 $0.88 $1.76 Fees $1.76 Policy IPurweumilu inm aiind Fees ..... . . . � . . . . . . . ..... s $"766.3 Discounts Discount Type Applies to Vehicle(s) Discount Type Applies to Vehicle(s) Anti -Lock Brakes 1,2 Good Driver 1 Auto /Home 1,2 Multiple Car 1,2 Group - Scientist 1,2 Alternative Fuel 1 Stability Control 1 Safe Driver 1 Persistency 1,2 Losses and Convictions Driver Type Date Driver Type Date Mohamed Khatri Conviction 11/14/2013 Nabeel Khatri Conviction 7/29/2013 farirxmeirs „coin n IPollilcylft. 18880- 91-46 uestioins Mainage youiraccourintm C alb grow aag;gu vV Illeeirn a IRiijhw aanu fl. r.'po to v,rmN.frairrneirs.corn to access (;r14)074 ./60 a it cin4 your account any time! rriftNaini@faarrinorsaxtge int.com 56 -6176 1st Edition 4-14 Page 2 of 4 Declaration Page (continued) Details Vehicle 1 Vehicle 2 Garaging Zip 92865 92865 Current Annual Mileage 8,000 12,379 Previous Annual Mileage 8,000 12,379 Vehicle Usage Other Use Other Use Years of Driving Experience 19 -23 24 -28 This section lists the policy form number and any applicable endorsements that make up your insurance contract. Any endorsements that you have purchased to extend coverage on your policy are also listed in the coverages section of this declarations document: 56 -5046 4th ed.; CA030 3rd ed.; CA048 1 st ed.; CA0491 st ed., CA050 1 st ed.; CA080 2nd ed.; CA0971 st ed.; H 1153 1 st ed.[Veh:1 only]; H 1171 1 st ed.[Veh:1 only]; J6275 1 st ed.; J6279 1 st ed.[Veh:1 only]; J62841 st ed.[Veh:1 only]; J6491 1 st ed.; J64921 st ed.; J6672 1st ed.; J69341st ed.; 25 -8531 10 -12 Other Information • You may be eligible for a different rate but with different coverage from Farmers Specialty Insurance Company. Please contactyour Farmers' agent to discuss your options. • The Attorney -In -Fact (AIF) or managementfee for your renewed policy will never exceed 20% of the policy's premiums and will be paid out of the premiums. You may wish to consider this information in deciding whetherto accept or decline this offer to renew your policy • Do you know that Farmers offers free of charge Farmers Friendly Reviews to ensure that you and yourfamily are receiving the right coverage and savings, please contact your agent to setup an appointment. *Information on Additional Fees The "Fees" stated in the "Premium /Fees" box on the front apply on a per - policy, not an account basis. The following additional fees also apply: Service Charge per installment (In consideration of our agreement to allow you to pay in installments): - For Monthly Recurring Electronic Funds Transfer (EFT) and fully enrolled online billing (paperless): $0.00 (applied per account) - For other Monthly EFT plans: $2.00 (applied per account) - For all other payment plans: $5.00 (applied per account) Polliicy INo. 18880....91 -46 2. Late Fee: $10.00 (applied per account) 3. Returned Payment Charge: $25.00 (applied per check, electronic transaction, or other remittance which is not honored by your financial institution for any reason including but not limited to insufficient funds or a closed account) 4. Reinstatement Fee: $18.40 (applied per vehicle, 20% discount will apply for Good Drivers) Questions? (;,,III your agent O;r.einna Riijllnwranii at (e'44) 674 -7602 orrwuVmH ruijhwani@fanrner sage nt. corn Manage youraccount: Go to www.farmers.com to access your account any time! 56 -6176 1st Edition 4-14 Page 3of4 t Index, of r 1u I wM Declarations Your Personal Coverage Page is attached. Insuring Agreement Definitions Used 'Throughout This Policy Your Duty To Report Changed Circumstances What To Do In Case of Accident No Coverage In Mexico Financed Vehicles .. _.. PART I - LIABILITY Coverage A - Bodily Injury Coverage Coverage B - Property Damage Coverage General Statement of Coverage Additional Definitions Used In This Part Only ®� . . ................. Supplementary Payments . 1 °,xcluisions .. What is Nuut ('over C d. Limits of Liability m... ........... Out of State Coverage,._ Conformity with Financial Responsibility Laws _ Other Insurance. . ®. ®_. , ®.......e.. ® ,.... I k1 t 5 5 5 1. Coverage C - Uninsured Motorist Coverage - 8 General Statement of Coverage ., ... .,.r. ... ........... 8 Additional Definitions Used In This Part Only ............. .. . _ ....... 8 Exclusions - What is Not Covered 9 Limits of Liability . _..,. 10 Other Insurance _ 10 Arbitration _ - - - - -- -- 11 PART III - Coverage E - Medical Expense Coverage-- 11 General Statement of Coverage ... ... ....... �..... - _m.,,,,. -_ - -- Additional Definitions Used In This Part Only -. _ . ....... 11 Exclusions - What is Not Covered_.�.�� A.,_ m,.m ........................ 12 Determination of Coverage ....... 13 Arbitration 13 Limit of Liability . _ 13 Other Insurance 13 Our Right to Recover Payment-____ . - n ....... 13 2, 1, I. Policy Period and Territory,,,,,, 2. Changes . .�.. 3. Legal Action Against Us,___-, 4. Transfer of Your Interest...... 5. Our Right to Recover Payment 6. Two or More Vehicles Insured. 7, Bankruptcy-_... ...,, 8. Termination .. ........ .. ... __, 9. No Duplication of BeneFtc.,.. 10. Concealment or Fraud RECIPROCAL PROVISIONS SPECIAL PROVISIONS ANY ADDITIONAL PROVISIONS AFFECTING YOUR POLICY ARE ATTACHED AS "ENDORSEMENTS." This policy is a legal contract between you (the policyholder) and us (the Company). IT CONTAINS CERTAIN EXCLUSIONS. 56 -4971 1STEDMON 2 -05 READ YOUR LICY CAREFULLY. 1 1 14 14 14 15 16 16 16 16 17 17 17 17 17 17 18 18 18 18 19 19 19 K11 C4971101 THIS PAGE LEFT INTENTIONALLY BLANK 56 -4971 1STEDMON 2 -05 2 (4971101 INSURING We agree with you, in return for your premium payment, to insure you subject to all the terms of this policy. We will insure you for the coverages and the limits of liability shown in the Declarations of this policy. DEFINITIONS I LILY Throughout this policy "you" and "your" mean the "named insured" shown in the Declarations and spouse or registered domestic partner under California Law if a resident of the same household. ' °W e," "us" and "our" mean the Company named in the Declarations which provides this insurance. In addition, the words that appear in bold type have specific definitions. Accident or occurrence means a sudden event, including continuous or repeated exposure to the same conditions, resulting in bodily injury or property damage neither expected nor intended by the insured person. Additional vehicle means a private passenger vehicle of which you acquire possession either by purchase, or by a written lease of at least six continuous months. This definition applies only if you: 1. Acquire the vehicle during the policy period; and 2. Notify us within 30 days of its acquisition. Bodily injury means bodily harm to or sickness, disease or death of any person. Damages are the cost of compensating those who suffer bodily injury or property damage from an accident. Family member means a person related to you by blood, marriage, adoption or is a registered domestic partner under California Law who resides with you, including a ward or foster child. Unmarried children of the named insured, residing elsewhere while attending school or in the armed forces, are considered to reside with the named insured, provided they are not emancipated. Non -owned vehicle means any private passenger vehicle or utility trailer, other than your insured vehicle, having a gross vehicle weight of 12,000 pounds (lbs.) or less, and that is not owned by, furnished or available for regular use by you or a family member. Occupying means in, on, getting into or out of Private passenger vehicle means a private passenger vehicle of the coupe, sedan, station wagon, pick up truck, van or sport utility vehicle type, actually licensed for use upon public highways. It does not include a motor home. Property damage means physical injury to or destruction of tangible property, including loss of its use. Rental vehicle means any private passenger vehicle or utility trailer having a gross vehicle weight of 12,000 pounds (lbs.) or less rented by you on a daily or weekly basis not to exceed 30 consecutive days, provided that this vehicle or utility trailer is not owned by, furnished or available for regular use by you or a family member. Replacement vehicle means a private passenger vehicle that you acquire as a replacement of any vehicle described in the Declarations, either by purchase, or by a written lease of at least six continuous months. This definition applies only if you: 1. Acquire the vehicle during the policy period; and 2. Notify us within 30 days of its acquisition. A replacement vehicle will have the same coverage as any vehicle it replaces. State means the District of Columbia and any state, territory or possession of the United States, or any province of Canada. Substitute vehicle means a private passenger vehicle, not owned by you, but being temporarily used by you as a substitute for any vehicle described in the Declarations. This applies only while the vehicle described in the Declarations is withdrawn from normal use because of breakdown, repair, servicing, loss, or destruction. 56 -4911 1-05 1 ST EDITION 2 -05 3 (4911103 Utility trailer means a vehicle designed to be towed by a private passenger vehicle and includes a farm wagon or farm implement while towed by a private passenger vehicle. It does not include a trailer used as an office, store, display or passenger trailer. Your insured vehicle means: 1. Any vehicle described in the Declarations of this policy; 2. A replacement vehicle; 3. A substitute vehicle; 4. A rental vehicle; 5. An additional vehicle; 6. Any utility trailer: a. That you own, or b. If not owned by you, while attached to your insured vehicle. 1 ' 1 1 all ' 1 Your policy was issued in reliance on the information you provided, including information concerning any vehicle and persons insured by the policy. To properly insure any vehicle, you must promptly notify us when you change your address or whenever any resident operators insured by your policy are added or deleted. You agree by acceptance of this policy that all information shown on the Declarations page of your policy or on the Memorandum of Insurance is accurate. You agree that if any information changes, is incorrect or incomplete, you must notify us and we may adjust your coverage and premium accordingly during the policy period. Any calculation by us of your premium or changes in your coverage will be made using the rules, rates and forms used in your state. Notice In the event of an accident, or loss, notice must be given to us promptly. The notice must give the time, place and circumstances of the accident, or loss, including the names and addresses of injured persons and witnesses. Additional notice requirements are given under Other Duties. Other Duties A person claiming any coverage under this policy must also: 1. Cooperate with us and assist us in any matter concerning a claim or suit. 2. Promptly send us any legal papers received relating to any claim or suit. 3. Submit to physical examinations at our expense by doctors we select as often as we may reasonably require. 4. Authorize us to obtain medical and other records. 5. Provide any written proofs of loss we require. 6. Notify police within 24 hours and us within 30 days if a hit - and -run motorist is involved and an uninsured motorist claim is to be filed. If claiming vehicle damage coverage: a. Take reasonable steps after loss to protect the vehicle and its equipment from further loss. We will pay reasonable expenses incurred in providing that protection. b. Promptly report the theft of the vehicle to the police. c. Allow us to inspect and appraise the damaged vehicle before its repair or disposal. d. Allow us, with your consent, to move your damaged vehicle, at our expense, to reduce storage costs. If you do not give us your consent, we will pay only the storage costs which would have resulted if we had moved your damaged vehicle. Submit to examination under oath and sign a transcript of the same upon our request. 56- 49711STWITION 2 -05 C4971104 9. As often as we reasonably require, provide us with records and documents we may request, including banking or other financial records, if obtainable, and permit us to make copies. 10. If claiming Medical Expense Coverage, submit receipts or bills for these services no later than 60 days following any and all treatment dates. 11. Refrain from voluntarily making any payment, assuming any obligation, or incurring any expenses except first aid expenses. 1 l f This policy does not provide any coverage for any accident, occurrence or loss occurring in Mexico. Insurance coverage should be secured from a company licensed under the laws of Mexico to write insurance in order to avoid complications and other possible penalties under the laws of Mexico. FINANCED I L If a creditor is shown in the Declarations, we may pay any Comprehensive or Collision loss to: 1. You and, if unpaid, the repairer; or 2. You and such creditor, as its interest may appear, when we find it is not practical to repair your vehicle; or 3. The creditor, as to its interest, if your vehicle has been repossessed. When we pay the creditor for loss for which you are not covered, we are entitled to the creditor's right of recovery against you to the extent of our payment. Our right of recovery shall not impair the creditor's right to recover the full amount of its claim. The coverage for the creditor's interest only is valid until we terminate it. We will not terminate such coverage because of: General State (overage �. 93=1 56- 49711STEDMON 2 -05 5 (4971105 Insured person does not mean: 1. The United States of America or any of its agencies. 2. Any person, including but not limited to a family member, for bodily injury or property damage arising from the operation of a vehicle by that person as an employee of the United States Government when the provisions of the Federal Tort Claims Act apply. 3. Any person, including but not limited to a family member, who uses a vehicle without having sufficient reason to believe that the use is with the permission of the owner. Supplementary P In addition to our limit of liability, we will pay these benefits as respects an insured person: 1. All costs we incur in the settlement of any claim or defense of any suit. 2. Interest after entry of judgment on any amount that does not exceed our limit of liability. 3. Bonds: a. Premiums on appeal bonds on any suit we defend. b. Premiums on bonds to release attachments in any such suit for an amount not in excess of the applicable limit of liability of this policy. c. Up to $300 for the cost of bail bonds required because of accident or traffic law violation arising out of use of your insured vehicle. d. We are not obligated to apply for, furnish, or provide collateral or security for any of the above bonds. 4. Actual loss of wages or salary up to $200 a day, but not other income, when we ask you to attend a trial or hearing. 5. Expenses you incur for first aid to others at the time of an accident involving any vehicle insured under PART I - LIABILITY. 6. Other reasonable expenses incurred at our request. Exclusions - What is Not (overed 1. We will not cover bodily injury or property damage arising out of the ownership, maintenance or use of a vehicle while used to carry persons or property for a charge. This exclusion does not apply to shared- expense car pools. 2. We will not cover bodily injury or property damage: a. Caused intentionally by, or at the direction of, an insured person. b. Caused by an intentional act of an insured person whether or not such person intended to cause damage or injury of any nature. 3. We will not cover bodily injury or property damage with respect to which any person is insured under nuclear energy insurance. This exclusion applies even if the limits of that insurance are exhausted. 4. We will not cover bodily injury to an employee of an insured person arising n1 the course of employment. This exclusion does not apply to bodily injury to a domestic employee unless workers' compensation benefits are required. 5. We will not cover bodily injury or property damage resulting from an insured person's employment, or other involvement, in the business or occupation of transporting, selling, repairing, servicing, storing or parking of vehicles, including road testing or delivery. This exclusion does not apply to the ownership, maintenance or use of your insured vehicle by you, any family member, or any partner, agent, or employee of you or any family member. 6. We will not cover bodily injury or property damage resulting from the use of any vehicle by an insured person in any business or occupation where the insured person's primary duty is the delivery of goods or services, including but not limited to, the business or occupation of pizza delivery, newspaper delivery or messenger service. 56- 49711STEDMON 2 -05 6 (4971106 7. We will not cover bodily injury or property damage resulting from the use of any vehicle by an insured person in an emergency occupation on a full -time, part -time, or volunteer basis. Such occupations include, but are not limited to, Fire Fighting, Police or Ambulance activities. This exclusion does not apply to any vehicle described in the Declarations, an additional vehicle, replacement vehicle or substitute vehicle, while used by an insured person in such activities. 8. We will not cover bodily injury or property damage resulting from the use of any vehicle that is part of a fleet or pool of vehicles provided for the regular use by an insured person in the course of his or her employment. This exclusion does not apply to any vehicle described in the Declarations, an additional vehicle, replacement vehicle or substitute vehicle. 9. We will not cover damage to property owned or being transported by an insured person. 10. We will not cover damage to property rented to, or in the charge of, an insured person except for property damage to a residence or private garage not owned by that person. 11. We will not cover bodily injury or property damage arising out of the ownership, maintenance or use of any motorized vehicle with less than four wheels. 12. We will not cover bodily injury or property damage arising out of the ownership, maintenance or use of any vehicle other than your insured vehicle, which is owned by or furnished or available for regular use by you or a family member. 13. We will not cover: a. Bodily injury to an insured person. b. Bodily injury to an insured person whenever the payment of damages for the bodily injury would benefit, directly or indirectly, an insured person. 14. We will not cover bodily injury or property damage resulting from liability assumed under any contract or agreement. This exclusion does not apply to liability you assume in a written contract relating to the use of a rental vehicle or non -owned vehicle. 15. We will not cover bodily injury or property damage resulting from an insured person, or your insured vehicle, taking part in any racing, speed, demolition, stunting or performance driving contest, demonstration, instruction or activity, or in practice or preparation for any such activity. 16. We will not cover bodily injury or property damage arising out of the ownership, maintenance, or use by any person of a vehicle in which you have sold or transferred ownership. This exclusion applies even if the sale or transfer does not result in the transfer of full ownership because of any failure to comply with motor vehicle laws. 17. We will not cover punitive or exemplary damages or the cost of defense related to such damages. Limits of Liability The limits of liability shown in the Declarations apply subject to the following: 1. The bodily injury liability limit for "each person" is the maximum for bodily injury sustained by one person in any occurrence. Any claim for loss of consortium, injury to the relationship, or bystander emotional distress arising from this injury shall be included in this limit. If the financial responsibility law of the place of the accident treats the loss of consortium as a separate claim, the applicable financial responsibility limits will be furnished as appropriate. 2. Subject to the bodily injury liability limit for "each person ", the bodily injury liability limit for "each occurrence" is the maximum combined amount for bodily injury sustained by two or more persons in any occurrence. 3. The property damage liability limit for "each occurrence" is the maximum for all damages to all property in any one occurrence. 56- 49711STEDMON 2 -05 7 [4971107 4. We will pay no more than the maximum limits for any vehicle insured by this policy regardless of the number of vehicles or premiums shown in the Declarations, insured persons, claims, claimants, policies, or vehicles involved in the occurrence. THIS MEANS THAT STACKING OR AGGREGATION OF LIABILITY COVERAGE - BODILY INJURY AND PROPER E - WILL NOT BE PERMITTED BY THIS POLICY. Out of State (overage An insured person may become subject to the financial responsibility law, compulsory insurance law or similar law of another state or in Canada. This can happen because of the ownership, maintenance or use of your insured vehicle when you travel outside of California. We will interpret this policy to provide any broader coverage required by those laws, except to the extent that other liability insurance applies. No person may collect more than once for the same elements of loss. Conformity it Financial Responsibility Laws When we certify this policy as proof under any financial responsibility law, it will comply with the law to the extent of the coverage required by law. Other Insurance If there is other applicable auto liability insurance on any other policy that applies to a loss covered by this Part, we will pay only our share. Our share is the proportion that our limits of liability bear to the total of all applicable limits. However, any insurance we provide for a vehicle you do not own shall be excess over any other collectible insurance. The highest limits of liability shown on the Declarations for any one vehicle will apply. PART II - UNINSURED MOTORIST Coverage C - Uninsured Motorist Coverage (Including Underinsured Motorist Coverage) General Statement of Coverage We will pay all sums which an insured person or such other person as permitted under the law is legally entitled to recover as damages from the owner or operator of an uninsured motor vehicle because of bodily injury actually sustained by the insured person including the wrongful death of an insured person. The bodily injury must be caused by an accident and arise out of the ownership, maintenance or use of the uninsured motor vehicle. Determination as to whether an insured person is legally entitled to recover damages or the amount of damages shall be made by agreement between the insured person and us. If no agreement is reached, the decision will be made by arbitration. Additional Definitions Used In This Part Only As used in this Part: Insured person means: 1. You or a family member. 2. Any other person while occupying your insured vehicle. 3. Any person for damages that person is entitled to recover because of bodily injury to you, a family member, or another occupant of your insured vehicle. But, no person shall be considered an insured person if the person uses a vehicle without having sufficient reason to believe that the use is with permission of the owner. 56- 49711ST(DMON 2 -05 8 (4911108 Motor vehicle means a land motor vehicle or a trailer but does not mean a vehicle: Operated on rails or crawler- treads. Which is a farm type tractor, or any equipment or vehicle, farm or otherwise, designed or modified for use primarily off public roads while not on public roads. Located for use as a residence or premises. Uninsured motor vehicle means a motor vehicle which is: 1. Not insured by a bodily injury liability bond or policy at the time of the accident. 2. Insured by a bodily injury liability bond or policy at the time of the accident which provides coverage in amounts less than the limits of Uninsured --L\4otorist Coverage shown in the Declarations. 3. A hit -and -run vehicle whose operator or owner has not been identified and which strikes: a. You or any family member. b. A vehicle which you or any family member are occupying. c. Your insured vehicle. 4. Insured by a bodily injury liability bond or policy at the time of the accident but the company denies coverage or is or becomes insolvent within one year of the accident. Uninsured motor vehicle does not mean a land motor vehicle that is: 1. Insured under the liability coverage of this policy. 2. Owned or operated by you or any family member unless the vehicle is being operated, or caused to be operated by a person without the consent of the owner of such vehicle in connection with criminal activity that has been documented in a police report and that insured is not a party to the criminal activity. 3. Furnished or available for your regular use by you or any family member. 4. Owned or operated by a person who is self - insured as allowed by any financial responsibility law, motor carrier law or similar law. 5. Owned by a governmental unit or agency. Underinsured motor vehicle means a land motor vehicle that is: 1. Insured by a bodily injury liability bond or policy at the time of the occurrence; and 2. Such bond or policy provides coverage in amounts less than the limits of Uninsured Motorist Coverage available under this policy. Underinsured motor vehicle does not mean a land motor vehicle that is: 1. Insured under the liability coverage of this policy. 2. Defined as an uninsured motor vehicle in this policy. 3. Owned by you or any family member unless the vehicle is being operated, or caused to be operated by a person without the consent of the owner of such vehicle in connection with criminal activity that has been documented in a police report and that insured is not a party to the criminal activity. 4. Furnished or available for regular use by you or any family member. 5. Owned or operated by a person who is self - insured as allowed by any financial responsibility law, motor carrier law or similar law. 6. Owned by a governmental unit or agency. Exclusions - What is Not Covered 1. This coverage does not apply to the benefit of any insurer or self - insurer under any workers compensation law, or directly to the benefit of the United States, or any state or any political subdivision. 2. This coverage does not apply to punitive or exemplary damages or the cost of defense related to such damages. 56- 49711STEDMON 2 -05 (4971109 7. We will not cover bodily injury to any person resulting from the ownership, maintenance or use of any vehicle owned by you or a family member that is not covered under this policy or through being struck by that vehicle. However, this exclusion shall not apply to bodily injury sustained by an insured when struck by any motor vehicle or trailer owned by that insured, and being operated, or caused to be operated by a person without that insured °s consent in connection with criminal activity that has been documented in a police report and that insured is not a party to the criminal activity. = The limits of liability shown in the Declarations apply subject to the following: 1. The limit for "each person" is the maximum amount we will pay for bodily injury sustained by any person in any one accident or occurrence. Any claim for loss of consortium or injury to the relationship arising from this injury shall be included in this limit. If the financial responsibility law of the place of the accident treats the loss of consortium as a separate claim, financial responsibility limits will be furnished. 2. The limit for "each occurrence" or "per occurrence" is the maximum combined amount we will pay for bodily injury sustained by two or more persons in any one occurrence. 3. Subject to the law of the state of the occurrence, we will pay no more than these maximum limits for any vehicle insured by this policy regardless of the number of vehicles or premiums shown in the Declarations, insured persons, claims, claimants, policies, or vehicles involved in the occurrence. THIS MEANS THAT STACKING OR AGGREGATION OF UNINSURED MOTORIST COVERAGE WILL NOT BE PERT 4ITTED BY THIS POLICY. 56- 49711STIMON 2 -05 10 C4971 I OA 4. If uninsured motor vehicle coverage or bodily injury is available to an insured from more than one policy provided by us or any other insurer the total limit of liability available from all policies provided by all insurers shall not exceed the limit of liability of the single policy providing the highest limit of liability. This is the most that will be paid regardless of the number of policies involved, persons covered, claims made, vehicles insured, premiums paid, or vehicle involved in the accident. PART III - I over - Medical (overage General Statement of (overage We will pay reasonable expenses for necessary medical services because of bodily injury suffered by insured person(s) in an occurrence resulting from the ownership, maintenance or use of a motor vehicle. Such medical services must be provided within two years from the date of the occurrence. Additional Definitions Used In This Part Only As used in this Part: Insured person(s) means: 1. You or any family member while occupying, or through being struck by, a motor vehicle or trailer, designed for use on public roads. 2. Any other person while occupying your insured vehicle while the vehicle is being used by a person who has sufficient reason to believe that the use is with permission of the owner. Motor vehicle means a land motor vehicle or a trailer other than: 1. A vehicle operated on rails or crawler- treads. 2. A vehicle, or any equipment, farm or otherwise, designed or modified for use primarily off public roads, while not on public roads. 3. A vehicle located for use as a residence or premises. 56- 49711STEDITION 2 -05 11 (4971108 7. Occurring during the course of employment if workers' compensation benefits are required. 8. Caused by war (declared or undeclared), civil war, insurrection, rebellion, revolution, nuclear reaction, radiation, or radioactive contamination, chemical contamination, or biological contamination or any consequence of any of these. This exclusion also applies to loss due to confiscation by a governmental agency. 9. During active participation in any organized or agreed -upon racing, speed, demolition, stunting or performance driving contest, demonstration, instruction or activity, or in practice or preparation for any such activity. 10. Where medical expenses are paid or payable by any governmental entity. 11. Caused by or resulting from mold, fungi or bacteria. 56- 49711STIMON 2 -05 IN (49711 00 We will pay for loss to your insured vehicle and its equipment caused by missiles, falling objects, fire, theft, explosion, earthquake, windstorm, hail, water, flood, malicious mischief, vandalism, riot or civil commotion, colliding with a bird or animal, or breakage of glass less any applicable deductible. If a loss to auto safety glass is repaired rather than replaced, the deductible applying to this coverage is waived. If the auto safety glass is replaced, the deductible applying to this coverage will remain in force. If breakage of glass results from a collision, you may elect to have it treated as loss caused by collision. Coverage G - Collision Coverage We will pay for loss to your insured vehicle and its equipment caused by collision less any applicable deductibles. Any deductible shall apply separately to each loss. Coverage H - Towing and Road Service Coverage We will pay for reasonable and necessary towing and labor costs incurred to the nearest repair facility because of disablement of your insured vehicle. The labor must be performed at the place of disablement. Additional Definitions Used In This Part Only As used in Part - IV - DANLAGE TO YOUR VEHICLE: Additional equipment means any equipment, which is not the vehicle's factory available equipment, including but not limited to: 1. Any video, electronic sound reproducing or transceiving equipment, and its component parts but not limited to DVD, Game System, NI1`3 player. 2. Any painted or finished surface, whether refinished in whole or in part, of any automobile insured under this Part where the claim exceeds the cost of duplicating the vehicle's factory applied surface finish. 3. Tires, wheels or any exterior surface equipment, or modification thereto, which exceeds the cost of repairing or replacing the vehicle's factory available equipment. 4. Any engine, transmission or suspension parts, or modification thereto, which exceeds the cost of repairing or replacing the vehicle's factory available equipment. 5. GPS navigational systems. Collision means collision of your insured vehicle with another object or upset of your insured vehicle. Equipment means equipment permanently attached to your insured vehicle and common to its use. Loss means direct and accidental loss of or damage to your insured vehicle, including its equipment, but does not include any decrease in your insured vehicle's value, however measured, resulting from the loss and /or repair. Replacement cost means the cost to purchase your insured vehicle: 1. When available in a local market, a vehicle of the same year, make, model, body type and equipment as your insured vehicle; or 2. When not available in the local market, an equivalent vehicle to your insured vehicle. An equivalent vehicle means a vehicle that matches as closely as possible the same year, make, model, body type and equipment as your insured vehicle. Ale reserve the right to determine what is equivalent. Supplementary Payments We will pay up to, but not more than, $200 for loss of clothing or lug gg in your insured vehicle and belonging to you or a family member if the loss is caused by: 1. Collision of your insured vehicle while covered by this policy. 2. Fire, lightning, flood, earthquake, explosion, falling aircraft, or the entire theft of your insured vehicle; and loss occurs to your insured vehicle from the same cause while covered for comprehensive by this policy. 56- 49711STEDMON 2 -05 14 (4911101 19. To radar detectors. 20. Caused: a. Intentionally by, or at the direction of, an insured person. b. By an intentional act of an insured person whether or not such person intended to cause damage of any nature. Limits of Liability Our limits of liability for loss shall not exceed: 1. The amount necessary to repair or replace the property or parts with other of like kind and quality; or with new property or parts, less an adjustment for physical deterioration and /or depreciation. Property or parts of like kind and quality includes, but is not limited to, parts made for or by the vehicle manufacturer. It also includes parts from other sources such as rebuilt parts, quality recycled (used) parts and parts supplied by non - original equipment manufacturers. 2. $500 for a utility trailer not owned by you, or a family member. Special Limits of Liability - New Vehicle Replacement N'e will pay the replacement cost of your insured vehicle deemed a total loss caused by a covered comprehensive or collision loss under this Part less any applicable deductibles. This coverage is effective on the day you or a family member takes delivery of a new vehicle and expires one year later at 12:01 a.m. This coverage applies to your insured vehicle provided that: 1. You or a family member have Comprehensive and Collision coverage on the vehicle; 2. You or a family member are the original owner of the vehicle; 3. The vehicle was a current model year vehicle at the time of purchase, or a prior model year vehicle that was purchased within 120 days of the introduction of an officially released succeeding model; 4. The vehicle was purchased in and designed for use in the United States. `u i '\Yy'e will pay the loss in money or repair or replace damaged or stolen property. We may, at any time before the loss is paid or the property is replaced, return, at our expense, any stolen property either to you or to the address shown in the Declarations, with payment for the resulting damage. We may keep all or part of the property at the agreed or appraised value. �, . M , You or we may demand appraisal of the loss. Each will appoint and pay a competent and disinterested appraiser and will notify the other of the appraiser's identity within 20 calendar days of the receipt of the written request. Each will equally share other appraisal expenses. The appraisers, or a judge of a court having jurisdiction, will select an umpire to decide any differences. Each appraiser will state separately the actual cash value and the amount of loss. An award in writing by any two appraisers will determine the amount payable, which shall be binding subject to the terms of this insurance. 56- 49711STEDITION 2 -05 16 C4971100 This policy is non - assessable. SPKIAL PROVISIONS (Applicable Only Policy Is Issued by r Insurance , ,p The Company named on the Declarations has caused this policy to be signed by the officers shown below FARMERS INSURANCE by Farmers Underwriters Association, Attorney -in -Fact 56- 49711STEDMON 2 -05 W (49711 OK LOSS OF USE ENDORSEMENT H117 1 st Edition This coverage applies only to the vehicle(s) for which this endorsement is listed on the Declarations page. For an additional premium, we will pay your extra expense arising from any of the options you have purchased as described in the schedule below and designated in the Declarations. The chosen option applies when the loss exceeds the deductible amount applicable under PART IV of your policy. COVERAGE OPTION SCHEDULE DESIGNATION COVERAGE DESCRIPTION K -1 We will pay you $10 per day while your insured vehicle is in the custody of a garage for repairs resulting from a collision. The maximum payable is $100. If your insured vehicle is a total loss (regardless of salvage value) we will pay you $100. K -2 We will pay you $15 per day while your insured vehicle is in the custody of a garage for repairs resulting from a Collision or Comprehensive loss. The maximum payable is $300. If your insured vehicle is a total loss (regardless of salvage value) we will pay you $300. This option does not cover total theft of your insured vehicle. K -3 Car Return Expenses: If Coverage K -1, K -2 or K -4 loss occurs more than 50 miles from your residence, we will pay you for the reasonable and necessary extra expense for commercial transportation, gasoline, lodging and meals incurred to return your insured vehicle, after it is repaired, to your residence or destination. The maximum payable for car return expenses is $200. K -4 We will pay you $25 per day while your insured vehicle is in the custody of a garage for repairs resulting from a Collision or Comprehensive loss. If your insured vehicle is a total loss (regardless of salvage value) we will pay you $500. The maximum payable under K -4 is $500. K -5 We will pay you $50 per day while your insured vehicle is in the custody of a garage for repairs resulting from a Collision or Comprehensive loss. If your insured vehicle is a total loss (regardless of salvage value) we will pay you $1000. If loss occurs more than 50 miles from your residence we will also pay your car return expenses for the reasonable and necessary extra expense for commercial transportation, gasoline, lodging and meals incurred to return your insured vehicle, after it is repaired, to your residence or destination. The maximum payable for car return expenses is $500. The maximum payable under K -5 is $1,000. The coverage afforded by this endorsement does not apply to any Collision or Comprehensive loss occurring before the effective date of this endorsement as shown in the Declarations. This endorsement is also subject to the following provisions: 1. Coverage applies only to your insured vehicle other than a private passenger vehicle or rental vehicle, not owned by you or a family member while being temporarily used as a substitute vehicle. 2. If you are paid under this endorsement, we shall have your rights to seek recovery. You shall do whatever is necessary to secure such rights. You shall do nothing to prejudice these rights. 3. The premium charged for this endorsement is fully earned unless the entire policy is cancelled. (Not applicable in Michigan). This endorsement is part of your policy. It supersedes and controls anything to the contrary. It is otherwise subject to all other terms of the policy. 42 -1167 1STEDMON 1 -05 H1167101 ENDORSEMENT ADDING PROPERTY DAMAGE TO H 1157 UNINSURED MOTORIST COVERAGE OR WAIVING COLLISION DEDUCTIBLE 1 st Edition This coverage applies only to the vehicle(s) for which this endorsement is listed on the Declarations page. For an additional premium, we will provide one of the following options you have purchased as shown in the Declarations. A person claiming any coverage under this endorsement must identify the owner or operator of the uninsured motor vehicle or identify the uninsured motor vehicle by its license number. This means that an accident, involving a hit -and -run vehicle whose operator or owner has not been identified, is not covered under this endorsement. The accident, occurrence or loss, must be reported to us promptly. Option C -1 Under Part II - Uninsured Motorist We will pay for property damage to your insured vehicle which an insured person is legally entitled to recover from the owner or operator of an uninsured motor vehicle. The property damage must be caused by actual direct physical contact between your insured vehicle and the uninsured motor vehicle. Coverage applies only under the following conditions: 1. Your insured vehicle is not covered for Collision; and 2. This policy includes Uninsured Motorist Coverage. Limits of Liability The limit per accident, occurrence or loss is $3,500 or the actual cash value of your insured vehicle, whichever is less. Option C -2 Under Part IV - Damage To Your Vehicle Coverage G - Collision, the following is added: No deductible shall apply if: 1. Your insured vehicle is covered under this policy for Collision, and 2. The property damage is caused by actual direct physical contact between your insured vehicle and the uninsured motor vehicle, and 3. An insured person is legally entitled to recover from the owner or operator of an uninsured motor vehicle. Definitions used in this Endorsement Property damage as used in this endorsement means injury to, or destruction of your insured vehicle, but does not include loss of use or personal property contained in your insured vehicle. Uninsured motor vehicle means a land motor vehicle with respect to its ownership, maintenance or use that is: A. Not insured by property damage liability insurance or bond at the time of the accident, occurrence or loss, or B. Insured by property damage liability insurance or bond at the time of the accident, occurrence or loss, but coverage is refused or the insuring company becomes insolvent within one year. Uninsured motor vehicle, however, does not mean a land motor vehicle that is: A. Insured under the liability coverage of fl-iis policy. B. Owned by, furnished or available for the regular use of you or any family member. C. Owned or operated by a person who is self - insured as allowed by any financial responsibility law, motor carrier law, or similar law. D. Owned by a governmental unit or agency. The provisions that apply to Exclusions, Other Insurance and Conditions under Parts II and IV of the policy remain the same and apply to this endorsement. This endorsement is part of your policy. It supersedes and controls anything to the contrary. It is otherwise subject to all other terms of the policy. 92 -1157 1STEDMON 1 -05 H1157101 SAFETY GLASS DEDUCTIBLE BUYBACK - (OVERAGE F H 1171 1 st Edition This coverage applies only to the vehicle(s) for which this endorsement is listed on the Declarations page. For an additional premium, it is agreed that the deductible applying to Coverage F - Comprehensive is replaced by a $100 deductible for a covered loss to safety glass. Our limit of liability for loss is the amount necessary to replace safety glass. This endorsement is part of your policy. It supersedes and controls anything to the contrary. It is otherwise subject to all other terms of the policy. 92-1171 1STEDMON 1-05 H1171101 THIS PAGE LEFT INTENTIONALLY BLANK 25-2974 1-06 (Continued Next Page) A2974201 • Insurance companies charge an additional premium for certain exposures that are associated with higher than normal losses. This additional premium is called a surcharge, and may be applied for any of the following conditions and situations. You may wish to consider these and discuss them with your Farmers agent before purchasing certain types of vehicles. Uninsured Motorist Coverage Your policy provides coverage for bodily injury and property damage under Part I - Liability. Uninsured Motorist (UM) coverage can provide coverage for property damage or bodily injury caused by a driver who has no liability insurance, or who has liability insurance but with limits lower than the amount to which you are entitled. Both Liability and UM are subject to limits of insurance (the maximum amount payable under any specific coverage). When we discuss the limits for UM coverage, we compare them to the limits selected for Part I - Liability. Under UM coverage, property damage and bodily injury are treated separately. The California Insurance Code requires an insurer to provide UM bodily injury coverage in each Auto policy it issues. UM property damage coverage is optional. You can choose UM bodily injury coverage with various limits (equal to or less than the Liability bodily injury limits), or it can be deleted entirely. To delete UM bodily injury liability coverage, you must sign an agreement. Your Farmers agent can provide the needed form. If your UM bodily injury liability coverage now has limits lower than your Liability bodily injury limits, California law requires us to notify you that the UM limits may be made equal to the Liability limits, at an additional charge. If you have a question about this coverage or want to make a change, please contact your Farmers agent. Optional UM coverage for property damage is available. It covers damage to your car that an insured person is legally entitled to recover from the owner or operator of an uninsured vehicle. If you want to have your policy issued with Uninsured Motorist Property Damage coverage at an additional charge, please contact your Farmers agent. 25 -2914 1 -06 A2974202 25-8531 11-04 (Continued ?`Text Page) A8531201 25 -8531 I1 -04 (Continued Next Pqq) A8531202 n IIS PAGE LE FF INTENTIONALIX BLANK, Dear Valued Customer, In compliance with California law, we are providing you with the address of the California Department of Insurance. However, we hope that any problem or question you may have can be solved by contacting your Farmers Agent or the Service Center servicing your policy. The Service Center addresses and phone numbers are listed below for your convenience. CALIFORNIA INSURANCE DEPARTMENT Consumer Service Division 300 South Spring Street Los Angeles, CA 90013 Telephone: (800) 927 -HELP (4357) (213) 897 -8921 Section 510 of Chapter 5.3 of the California Insurance Code states that the Department of Insurance should be contacted only after the contacts between the complainant and the insurer or its agent or other representative have failed to produce a satisfactory solution to the problem. NORTHERN CALIFORNIA: 11555 Dublin Canyon Rd. Pleasanton, CA 94588 -9983 (925) 847 -3100 25 -2191 7 -01 SERVICE CENTERS LOS ANGELES: 3041 Cochran St. Simi Valley, CA 93099 -2771 (805) 583 -7000 SOUTHERN CALIFORNIA: 2500 South Fifth Ave. Pocatello, ID 83204 -1923 (208) 234 -8100 A2191401 THIS PAGE LEFT INTENTIONALLY BLANK W 'J N L OD 00 M rl W io w H o z r ' = -ri > 01 H a 10 3w K F '4 rn = = x > A a a w �oH w w z x�a zz�a FailSafeTM G I G A t e c h n o l o g y l i a b i l i t y Declarations Page HARTFORD FIRE INSURANCE CO. HARTFORD PLAZA, HARTFORD, CT 06115 This is a claims first made and reported in writing policy. Claim expenses are included within the limits. Please read the policy carefully. Policy Number 028157 -1 Renewal of Policy Number 00 TE 0281457 3 " 4 46 � ......... 1. Named Insured NMK CORPORATION DBA IPTELSUPPORT Address 286 TULIP TREE LANE ORANGE, CA 92865 2. Policy Period Start Date 10/17/14 End Date 10/17/15 at 12:01 a.m. standard time at the address shown in item 1 above 3. Retroactive Date 10/17/13 If the space above is left blank, coverage does not apply to any glitch committed before the Start Date stated in item 2 above. 4. Limits of Liability Each Glitch Limit Aggregate Limit $ 1,000,000 $ 1,000,000 5. Retention Each Glitch $ 2,500 6. Premium $ 700.00 7. Forms and Endorsements: This Declarations page, the policy and endorsements listed below and all changes later added to the policy by us in written endorsements constitute the entire insurance policy: SEE ENDORSEMENT A - SCHEDULE OF FORMS AND ENDORSEMENTS 8. Producer Name 91676 BIN INSURANCE HOLDINGS LLC Address 1301 CENTRAL EXPY S SUITE 115 ALLEN, TX 75013 Countersignature: Date Authorized Representative 07/21/14 Form HK 00 05 1212 FailSaWm GIGA Release 3.0 Page 1 of 1 © 2012, The Hartford GU 207 ENDORSEMENT A (6 -78) This endor7,, effective oil 10/17/14 at 12:01 A.M. standard time, forms a part of � 7 POIICy N0. `El 0281457 4 ,'` of the HARTFORD FIRE INSURANCE CO. C Issued to NMK CORPORATION DBA IPTELSUPPORT b41-� Andre A. Napoli, President SCHEDULE OF FORMS AND ENDORSEMENTS HK70021212 12/12 FAILSAFE GIGA TECHNOLOGY LIABILITY CONTENTS HK00041212 12/12 FAILSAFE GIGA TECHNOLOGY LIABILITY POLICY HK99700107 01/07 SIGNATURE ENDORSEMENT HK03561212 12/12 MANAGEMENT CONSULTANT SERVICES ENDORSEMENT HK04091212 12/12 FIRST PARTY DATA PRIVACY EXPENSE AND CYBER EXTORTION COVERAGE ENDORSEMENT HK21281101 11 /01 ASBESTOS EXCLUSION HK21450404 04/04 UNSOLICITED SENDING OF INFORMATION EXCLUSION HK31050305 03/05 WAR, HOSTILE LOUR TERRORISM EXCLUSION HK23011212 12/12 ADDRESS FOR LI'iCH R CLAIM NOTIFICATION OR CORRESPONDENCE ENDORSEMENT HKO1041212 12/12 CALIFORNIA CHANGES HR04H00101 09/05 CALIFORNIA CANCELLATION AND NONRENEWAL ENDORSEMENT Rev. Ed. Date (04/02) GU 207 (6 -78) FailSa e® G I G A t e c h n o l o g y l i a b i l i t y Contents Pa es 1 -- 4 Section I - Coverage Page 1 A. Insuring Agreement Page 2 B. Defense Page 3 C. When We Insure Pages 4 — 0 Section II - Definitions Pages Section III - Exclusions Pages 12 — 13 Section IV - Nuclear Energy Liability Exclusion (Broad Form) Page 13 Section V - Limits of Liability and Retention Page 13 A. Limits of Liability B. Retention for Each Glitch Pages 14 — 15 Section VI - Extended Reporting Periods Page 14 A. Terms Applicable to Both Types of Extended Reporting Period B. Basic Extended Reporting Period C. Optional Extended Reporting Period aos 15 — 19 Section VII - Conditions Page 15 A. Territory B. Currency C. Bankruptcy D. Cancellation Page 16 E. When We Do Not Renew F. Entire Agreement G. Changes H. Duties in the Event of Glitch or Claim Page 17 I. Legal Action Against Us J. Mergers, Consolidations or Acquisitions Page 18 K. Other Insurance and Payments Available to You L. Payment of Premiums and Retention M. Transfer of Rights of Recovery against Others to Us N. Transfer of Your Rights and Duties Under This Policy O. Representations and Statements Form HK 70 02 12 12 FailSafe GIGAG Release 3.0 Page 1 of 1 © 2012, The Hartford . : FOR FailSfe® G I G A t e c h n o l o g y I i a b i 1 i f y This is a claims first made policy. Please read it carefully, and contact your agent or broker if you have any questions. Your policy applies only to claims when: the glitch occurs on or after the Retroactive Date and before the end of the policy period, and the claim is first made against any of you during the policy period and you use your best efforts to report such claim to us in writing as soon as practicable in accordance with the terms of this policy. Covered claim expenses and damages within the Retention amount must be paid by you and do not reduce the Limits of Liability. Covered claim expenses and damages above the Retention amount are payable under this policy and reduce the Limits of Liability. Some provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and what is not covered. The words "we," "us" and "our" refer to the stock insurance company member of THE HARTFORD shown on the Declarations Page of this policy. The words "you" and "your" mean any person or entity described under the definition of "you or your" in Section II — Definitions. The words "glitch" and "technology services" are defined in Section I — Coverage, Section IV — Nuclear Energy Liability Exclusion (Broad Form) contains definitions specific to that section. Except for the definitions mentioned above and captions, all other words and phrases that appear in bold type are defined in Section 11 — Definitions. In return for payment of the premium, and subject to all of the terms and conditions of this policy, including those changed, added or deleted by endorsements that we issue forming a part of this policy, we agree with you as follows: A. Insuring Agreement We will pay on your behalf money in excess of the Retention that you become legally required to pay as damages and claim expenses because of a claim caused by a glitch in your performance of technology services. Form HK 00 04 12 12 FailSafe GIGA® Release 3.0 Page 1 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 ❖ Glitch means the following when actually or allegedly committed by you or on your behalf: 1. negligent: act, error or omission; 2. breach of warranties or representations about the fitness, quality, suitability, performance or use of your technology services; 3. failure of your technology services to perform the function or serve the purpose intended; and 4. failure to prevent: a. denial of service; b. disruption of service; c. unauthorized access to, unauthorized use of, repudiation of access to, tampering with or introduction of malicious code into: firmware, data, software, systems or networks; d. identity theft or disclosure of nonpublic personal information; or e. disclosure of third party nonpublic corporate information. Glitch also includes an interrelated glitch. Glitch includes any of the foregoing when caused by the acts of a negligently supervised rogue employee. ❖ Technology services means: 1. the following services performed for others: a. consulting, analysis, design, installation, training, maintenance, support and repair of or on: software, wireless applications, firmware, shareware, networks, systems, hardware, devices or components; b. integration of systems; c. processing of, management of, mining or warehousing of data; d. administration, management, operation or hosting of: another party's systems, technology or computer facilities; e. website development; website hosting; f. internet access services; intranet, extranet or electronic information connectivity services; software application connectivity services; g. manufacture, sale, licensing, distribution, or marketing of: software, wireless applications, firmware, shareware, networks, systems, hardware, devices or components; h. design and development of: code, software or programming; L providing software application: services, rental or leasing; j. screening, selection, recruitment or placement of candidates for temporary or permanent employment by others as information technology professionals; k. telecommunication services; I. telecommunication products; and m. services listed below: NO OTHER SERVICES; 2. web - related software and connectivity services performed for others; and 3. activities on the named insured's computer system and network. B. Defense 1. For all covered claims made in the United States of America, its territories and possessions, Puerto Rico or Canada, we have the right and duty to defend you. We have the right to appoint counsel. We may investigate any claim as we deem appropriate. 2. For all covered claims made outside the United States of America, Puerto Rico or Canada, we have the right but not the duty to defend you, appoint counsel and investigate. If we choose not to defend, appoint counsel and investigate such a claim, Form HK 00 04 12 12 FailSafe GIGA® Release 3.0 Page 2 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 the first named insured under our supervision will arrange for investigation and defense of the claim as reasonably appropriate. Subject to the Limits of Liability, we will reimburse the first named insured for paying damages or claim expenses for covered claims. 3. The following terms apply to all covered claims, wherever they are made: a. You will not settle any claim without our prior written consent, even if the claim is less than the amount of the Retention. We have the right to settle all claims, wherever made, unless we receive a written objection from the first named insured before we agree to a settlement. The first named insured will be notified before we agree to a settlement. If the first named insured objects to a settlement recommended by us and acceptable to the claimant, then our duty to pay will be limited to: (1) the amount of damages for which the claim could have been settled; plus (2) all claim expenses incurred and paid or payable by us or the first named insured at the time we made our recommendation; plus (3) fifty percent (50 %) of all covered damages and claim expenses incurred and paid or payable by us or the first named insured after the time we made our recommendation. If the total of those amounts falls within your Retention, we will have no duty to pay damages and claim expenses on that claim. In no event will we be obligated to pay more than the remaining applicable Limit of Liability determined under Section V — Limits of Liability and Retention. In claims where the first named insured has objected to a settlement recommended by us, we have the right to stop defending and paying claim expenses upon tendering control of the defense to you. b. We have the right to exercise all of your rights in choosing arbitrators and in conducting all arbitrations. c. Our right and duty to defend claims and to pay or reimburse for claim expenses will end when we have used up the applicable Limit of Liability by paying damages and /or claim expenses. C. When We Insure This policy applies to a glitch only if all the terms in 1 through 3 below are met: 1. the glitch was committed on or after the Retroactive Date shown in the Declarations and before the end of the policy period; 2. before the Start Date of this policy shown in the Declarations, no specified insured knew of or should have reasonably known of: a. a glitch; or b. any fact(s) or circumstance(s) which could reasonably be expected to result in a claim; and 3. the claim because of the glitch is: a. first made against any of you during the policy period; and b. reported to us in writing by you using your best efforts to notify us as soon as practicable after any specified insured becomes aware of it. All claims arising from the same glitch, as defined in Section I — Coverage, are considered to be one claim. A claim is deemed first made when the earliest of the following occurs: any of you receive written notice of such claim; or Form HK 00 04 12 12 FailSafe GIGA® Release 3.0 Page 3 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 subject to Section VII — Conditions, Duties in the Event of Glitch or Claim, we receive from you or your agent written notice of the glitch, which later results in a claim. A claim is deemed reported to us when we first receive it in writing. Section II — Definitions ❖ bodily injury means physical injury, sickness, disease or death sustained by a person; or mental anguish, emotional distress, mental injury, fright and shock when they result in or from bodily injury, sickness, disease or death. ':' claim means a written demand received by any of you for damages or injunctive relief. This includes a suit, arbitration or other type of alternative dispute resolution proceeding against any of you. •:' claim expenses means reasonable expenses incurred by us or by you with our prior written consent investigating and defending a claim. 1. claim expenses also include: a. the cost of bonds to release attachments, but only for bond amounts within the remaining applicable Limit of Liability. We do not have to furnish these bonds; b. costs taxed against you in the suit; c. interest on the full amount of any judgment that accrues before or after entry of the judgment and before we have paid, offered to pay or deposited in court the part of the judgment that is within the remaining applicable Limit of Liability; and d. actual loss of earnings up to $1,000 per day for each of you that you personally incur because of time off from work at our request to help us investigate or defend a claim. 2. claim expenses do not include any first party expenses or salaries, wages, remuneration, compensation, benefits, overhead, or similar expenses of any of you. AV computer system and network means: 1. leased or owned computer hardware including mobile, networked, and data storage computing equipment; 2. owned or licensed software; 3. owned websites; 4. leased or owned wireless input and output devices; and 5. electronic backup facilities and data storage repositories employed in conjunction with items 1 through 4 above. ':' contract worker agreement means a signed agreement between the named insured and an individual person who is an agent or independent contractor when the agreement provides that: 1. the agent or independent contractor will provide specific technology services on behalf of the named insured; 2. the named insured will indemnify the agent or independent contractor for those technology services; and 3. the agreement is made before any glitch that may give rise to a claim. •:' crisis management expenses means reasonable and necessary fees and expenses: 1. charged by a crisis management firm in the performance of crisis management services; and Form HK 00 04 12 12 FailSafe GIGAG Release 3.0 Page 4 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 2. for printing, advertising, mailing of materials, or travel by an executive officer, partner, owner, employee, agent of the named insured, or the crisis management firm as a direct response to a data privacy wrongful act. crisis management firm means any public relations or law firm hired or appointed by us or by you with our prior written consent, to perform crisis management services in connection with a data privacy wrongful act. ❖ crisis management services means those services performed by a crisis management firm to minimize potential harm to the named insured arising from a data privacy wrongful act, including: 1. maintaining and restoring public confidence in the named insured; and 2. providing advice to the named insured in connection with such data privacy wrongful act. ':• cyber extortion expenses means those reasonable and necessary expenses incurred by the named insured as a result of a cyber extortion threat including cyber extortion payments. cyber extortion payments means necessary monetary amounts paid by the named insured, with our consent, to a party who is not insured under this policy and whom the named insured believes to be responsible for the cyber extortion threat. •:' cyber extortion threat means a threat or series of threats communicated to the named insured by a person or group, who is not insured under this policy, to cause an actual and measurable interruption, suspension in service or the failure of the named insured's computer system and network (including failure to prevent unauthorized access or unauthorized use of the named insured's computer system and network) unless cyber extortion payments are surrendered by the named insured to such person or group. All cyber extortion threats made by the same person or group within ninety (90) days of one another will be deemed one cyber extortion threat and the date of the commission of the first such cyber extortion threat will be deemed the date of commission of all such related cyber extortion threats. V cyber investigation expenses means those reasonable and necessary expenses incurred by the named insured to conduct an investigation of the named insured's computer system and network by a third party to determine the source or cause of a data privacy wrongful act. ':• damages means a money award, judgment or settlement that you become legally required to pay, including punitive, exemplary and multiplied damages where insurable by law. damages do not include: 1. any kind of: refund, rebate, redemption coupon, offset, return or credit that has been paid to or by any of you, or that is owed to or by any of you; examples include but are not limited to any of the following: any licensing fee or other fee, royalty, subscription or access charge, or other charge; 2. disgorgement of profits or any money or credits that represent any gain, profit or advantage to which any of you are not legally entitled; 3. your cost to comply with any non -money or injunctive relief; 4. cost or expense to recall, upgrade, replace, repair, correct, complete or reperform technology services, in whole or part, by: a. any of you; or b. another party if any of you had the opportunity to recall, upgrade, replace, repair, correct, complete or reperform technology services; 5. any criminal: fine or penalty; Form HK 00 04 12 12 FailSafe GIGA® Release 3.0 Page 5 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 6. any payment any of you make without our prior written consent; 7. the purchase or contract price for your technology services; or 8. any first parry expenses or salaries, wages, remuneration, compensation, benefits, overhead, or similar expenses of any of you. In accordance with the foregoing, insurable punitive, exemplary and multiplied damages will be covered based upon the law of the most favorable of the following jurisdictions to you: a. where the punitive, exemplary or multiplied damages are imposed or awarded; b. where the claim resulting in punitive, exemplary, or multiplied damages occurred; c. where the glitch giving rise to a claim that resulted in punitive, exemplary, or multiplied damages occurred; d. where the named insured against whom punitive, exemplary, or multiplied damages are imposed or awarded is incorporated, resides or has their principal place of business; or e. where we are incorporated or have our principal place of business. ❖ data privacy laws means any United States or Canadian federal, state and local statutes and regulations governing confidentiality, control and use of nonpublic personal information including but not limited to: 1. Health Insurance Portability and Accountability Act of 1996 (Public Law 104 -191) (H I PAA); 2. Health Insurance Technology for Economic and Clinical Health Act of 2009 (HITECH); 3. Gramm - Leach - Bliley Act of 1999, also known as, the Financial Services Modernization Act of 1999; 4. State privacy protection laws; 5. Federal and state consumer credit reporting laws, including but not limited to the Federal Fair Credit Reporting Act (FCRA) and the California Consumer Credit Reporting Agencies Act (CCCRAA); or 6. The Fair and Accurate Credit Transaction Act of 2003 (FACTA). ❖ data privacy regulatory and credit monitoring expenses means: 1. reasonable and necessary costs incurred by the named insured to provide credit monitoring services in the named insured's compliance with data privacy laws; 2. reasonable and necessary costs incurred by the named insured to provide courtesy credit monitoring when such credit monitoring is necessary to preserve the reputation and good name of the named insured and to mitigate the potential for a future claim(s); 3. reasonable and necessary legal fees and expenses incurred by the named insured in the defense of a data privacy regulation proceeding; and 4. fines or penalties assessed in connection with a data privacy regulation proceeding. ❖ data privacy regulation proceeding means a civil, administrative or regulatory proceeding against a named insured by a federal, state or foreign governmental authority alleging violation of any data privacy law. A data privacy regulation proceeding is not a claim. ❖ data privacy wrongful act means any act, error or omission that results in: 1. the improper dissemination of nonpublic personal information; or 2. any breach or violation by the named insured of any data privacy laws. Data privacy wrongful act also means an interrelated data privacy wrongful act. ❖ enhanced telephone services means call conferencing, call forwarding, call identification, call return, call waiting, calling card, directory assistance, repeat dialing, speed dial, toll free, video conferencing, voice messaging services. Form HK 00 04 12 12 FailSafe GIGAID Release 3.0 Page 6 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 ':' executive officer means a director or officer in a position created by your charter, constitution, by -laws or any other similar governing document. ❖ first named insured means the named insured first listed in item 1 of the Declarations. ':' first parry expenses means the following expenses incurred by the named insured: 1. crisis management expenses; 2. cyber investigation expenses; 3. data privacy regulatory and credit monitoring expenses; 4. notification expenses; and 5. cyber extortion expenses. First party expenses do not include salaries, wages, remuneration, compensation, benefits, overhead, or similar expenses of any of you. •:' interrelated glitch means multiple glitches that are logically or causally connected by common facts, circumstances, situations, events, transactions and /or decisions. Interrelated glitches that occur before the end of the last technology errors and omissions /liability policy issued by an insurance company member of The Hartford are considered one glitch occurring on the date the earliest such glitch is committed. An interrelated glitch is subject to the Each Glitch Limit. •:' interrelated data privacy wrongful act means multiple data privacy wrongful acts that are logically or causally connected by common facts, circumstances, situations, events, transactions and /or decisions. Interrelated data privacy wrongful acts that occur before the end of the last technology errors or omissions /liability policy issued by an insurance company member of The Harford are considered one data privacy wrongful act occurring on the date of the earliest such data privacy wrongful act is committed. ':' named insured means: 1. the persons or entities listed in item 1 of the Declarations; and 2. any subsidiary. ':' nonpublic personal information means a natural person's first name and last name in combination with one or more of the following items specific to that natural person: 1. social security number; 2. medical or healthcare information or data; 3. drivers license number or state identification number; or 4. financial account information that would permit access to that individual's financial account. V notification expenses means the reasonable and necessary expenses incurred to comply with notification laws, as well as, courtesy notifications to individuals when such notifications are not mandated by notification laws but are reasonably necessary to preserve the reputation and good name of the named insured and to mitigate the potential for a future claim(s). ':' notification laws means any statute or regulation that requires the named insured storing nonpublic personal information on the named insured's computer system and network to provide notice to specified individuals of any actual or potential data privacy wrongful act with respect to such nonpublic personal information. V personal injury means: 1. any form of defamation or disparagement causing harm to the character, reputation or feelings of any person, entity, product or service, including but not limited to libel, slander, Form HK 00 04 12 12 FailSafe GIGA® Release 3.0 Page 7 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 product or service disparagement, trade libel, infliction of emotional distress, outrage or outrageous conduct; 2. any form of invasion, infringement or interference with rights of publicity or privacy, including but not limited to false light, public disclosure of private facts, intrusion and commercial appropriation of name or likeness; or 3. wrongful entry or eviction, trespass, eavesdropping or other invasion of the right of private occupancy; or malicious prosecution or false: arrest, detention or imprisonment. ❖ policy period means the time beginning with the Start Date shown in the Declarations and ending with the earlier of: 1. the date of termination or cancellation; or 2. the End Date shown in the Declarations. ❖ pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. A' rogue employee means any past or present employee of any named insured who acts or acted outside the scope of his or her employment to intentionally cause a glitch or a data privacy wrongful act. Rogue Employee does not include any specified insured. ❖ specified insured means: 1. any named insured including the spouse and /or domestic partner of a named insured that is an individual; 2. any past or present partner, executive officer, or any individual in an equivalent position of a named insured, including but not limited to individuals that hold management positions similar to an executive officer for any named insured that does not have a charter, constitution, by -laws or any other similar governing document; 3. any individual responsible for the insurance, legal, or financial matters of the named insured including but not limited to General Counsel, Risk Manager, or Insurance Manager of the named insured; 4. any member of the named insured that could be afforded coverage under this policy; or 5. the executors, administrators or legal representatives of 1, 2, 3, or 4 listed above in the event of a death, incapacitation or bankruptcy of 1, 2, 3 or 4 listed above; but this only applies while performing their duties as such. However, specified insured does not include any rogue employee. ❖ subsidiary means any corporation of which the first named insured owns, directly or indirectly, more than fifty percent (50 %) of the issued and outstanding voting stock. The stock must be owned by the first named insured on the Start Date of this policy shown in the Declarations. 1. Subsidiary also includes any corporation which becomes a subsidiary during the policy period, provided that as soon as practical, but no later than within ninety (90) days of its becoming a subsidiary, you have: a. provided us with full details of the new subsidiary including a completed and signed subsidiary application and any other underwriting information we may require; b. agreed to and paid any additional premium related to the subsidiary; and c. agreed to any change in the terms and conditions of this policy required by us relating to the new subsidiary. 2. This policy does not apply to any claim arising from or involving a subsidiary for any glitch that was committed when the first named insured did not own directly or indirectly more than fifty percent (50 %) of the issued and outstanding voting stock of the subsidiary. Form HK 00 04 12 12 FailSafe GIGA® Release 3.0 Page 8 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 ❖ telecommunication products means computer hardware, firmware and /or software products, electronic equipment or devices manufactured, sold, handled, distributed or disposed of by "you" which are specifically designed or intended for use in telecommunication systems or "your" "telecommunication services ". ❖ telecommunication services means the following services performed for others: 1. telephone services including competitive access provider, dial tone access, digital subscriber line (DSL), incumbent/local exchange carrier, facsimile, integrated services digital network (ISDN), interconnection, local, long distance, reseller, switching, and 911 emergency services; 2. enhanced telephone services; 3. cellular and wireless communication services including paging and ground based satellite communication services; 4. provision of cable television services; and 5. telecommunication consulting services. ❖ temporary worker means a person who is provided to you by a third party for a specific time period to support or increase your work force in special situations. Such situations may include employee absences, temporary skill shortages and seasonal workloads. A temporary worker is not an employee of yours. ❖ you or your mean, individually and collectively: 1. any named insured; 2. any past or present partner, executive officer, or any individual in an equivalent position of a named insured, including but not limited to individuals that hold management positions similar to an executive officer for any named insured that does not have a charter, constitution, by -laws or any other similar governing document, but only while performing their duties as such; 3. any past or present employee of the named insured but only while performing their duties as such; employee does not include a temporary worker; 4. any individual person who is an agent or independent contractor but only while acting within the scope of his or her contract worker agreement with the named insured; 5. a client that the named insured is required, in a written contract to perform technology services, to add as an additional insured under this policy. But the client is insured under this policy only if: a. the glitches were committed by the named insured in the named insured's performance of technology services; b. the written contract is entered before the glitch giving rise to the claim is committed; and c. there are no allegations of independent misconduct by the client. 6. any member or stockholder of the named insured; but this only applies with respect to their liability as a member or stockholder; or 7. the executors, administrators or legal representatives of each of you listed in items 1 through 6 above in the event of your death, incapacity or bankruptcy; but this only applies while performing their duties as such. Section III —Exclusions A. We will not pay damages or claim expenses or defend any of you for any glitch or claim arising out of or in any way related to any actual or alleged: 1. bodily injury or personal injury; Form HK 00 04 12 12 FailSafe GIGA@ Release 3.0 Page 9 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 2. physical damage to or physical loss of tangible property and any resulting loss, corruption or destruction of data or information, including all resulting loss of use of that property, data or information. However, this exclusion will not apply to the loss, corruption or destruction of data or information when the tangible property on which the data or information is or was kept is not physically damaged or physically lost; 3. obligation which any of you may have to pay under any workers' compensation act, employer's liability law, unemployment compensation law, disability benefits law, or any similar law; or any foreign equivalent; 4. gradual deterioration of, wear and tear of or inherent vice in tangible property; 5. disruption of, surge in, fluctuation in or loss of: power, connectivity or communications. However, this exclusion will not apply to any of the foregoing when directly caused by a glitch committed by any of you; 6. withdrawal or recall of all or part of technology services from the marketplace. However, this exclusion will not apply to claims by third parties for the loss of use resulting from withdrawal or recall of technology services due to a glitch committed by any of you; 7. delay in or failure to complete technology services. However, this exclusion will not apply if the delay or failure to complete technology services is the result of a glitch committed by any of you; 8. cost: overruns, guarantees, estimates or estimates being exceeded; 9. discontinuance or cessation by any of you of the provision, support or maintenance of any technology services; 10. false, deceptive, fraudulent, intentionally misleading or misrepresenting statements in advertising; 11. sweepstakes, lotteries or other games of chance; or contests; 12. price fixing, or any other violation of: any securities, antitrust, restraint of trade, unfair or deceptive business practices, unfair competition or consumer protection laws, the Racketeer Influenced and Corrupt Organizations Act; any similar law; or any foreign equivalent; 13. violation or misuse of any intellectual property right, including but not limited to: a. infringement or dilution of: title, slogan, trademark, trade name, trade dress, service mark or service name; b. infringement of copyright, plagiarism or misappropriation of ideas; c. piracy; d. patent infringement or patent misuse; or e. misuse, misappropriation or theft of trade secrets; 14. tortious interference with the contractual relationships of others; 15. bankruptcy or insolvency of any of you; 16. discrimination, harassment or misconduct by any of you because of or relating to: race, creed, color, age, gender, sex, sexual preference or orientation, national origin, religion, disability, handicap, health condition, marital status, or any other class protected under federal, state, local or other law; or any similar law in a jurisdiction outside the United States of America; 17. acts or omissions by any of you regarding: a. refusal to employ; b. termination of a person's employment; c. employment - related practices, policies, acts or omissions; these include but are not limited to coercion, demotion, evaluation, re- assignment, discipline, defamation, harassment, humiliation or discrimination; or Form HK 00 04 12 12 FailSafe GIGA® Release 3.0 Page 10 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 d. breach of fiduciary duty or other responsibility in connection with any employee benefit or pension plan; this includes but is not limited to violation of the duty or responsibility imposed on fiduciaries by the Employee Retirement Income Security Act of 1974 (ERISA) or any changes to that law; any similar law; or any foreign equivalent; 18. or threatened discharge, dispersal, seepage, migration, release or escape of pollutants or any loss, cost or expense arising out of any: a. request, demand, order or statutory or regulatory requirement that any of you or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to or assess the effects of pollutants; or b. claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of pollutants; or 19. electromagnetic radiation, including but not limited to magnetic energy, waves, fields or forces. B. We will not pay damages or claim expenses or defend any of you for any claim made by or on behalf of: 1. any of you; however, this exclusion will not apply to claims made: a. by any of you described in items 3, 4 or 5 of the definition of you when the claim is made in their capacity as a client as a result of technology services performed by the named insured on their behalf; or b. against the named insured by any of you described in items 3 or 4 of the definition of you when the claim is the result of a glitch describe in Section I, Item 4.d. of the definition of glitch. 2. any entity which is a parent, affiliate, subsidiary, joint venturer, co- venturer or other entity in which any of you owns an interest or is a partner, director, officer, sole proprietor, trustee or employee; 3. any entity affiliated with any of you through any common ownership or control; 4. any entity directly or indirectly controlled, operated or managed by any of you; or 5. any federal, state or local government body, subdivision or agency; any regulatory or licensing agency or bureau; or any foreign equivalent. However, this exclusion will not apply when the claim is made in their capacity as a client as a result of technology services performed by the named insured on their behalf. For the purposes of exclusions B.2 through 4 above, the words "owns," 'ownership or control" and "controlled" mean ten percent (10 %) or more ownership of a publicly -held corporation or thirty percent (30 %) or more ownership of a privately -held corporation, or ten percent (10 %) or more of any other type of entity. C, We will not pay damages or claim expenses for any glitch or claim arising out of or in any way related to any: 1. dishonest, fraudulent, criminal or intentional wrongful act or omission by any of you; or 2. material defect or bug known by any of you that could reasonably be expected to cause harm; when such act or knowledge is established by your admission or final adjudication by a jury, court or arbitrator. However, exclusions CA and 2 above do not apply to any of you who did not commit, acquiesce in, or remain passive after learning of the actions giving rise to the claim. For purposes of this exclusion, the knowledge, action or inaction of any executive officer, partner, or any individual in an equivalent position of a named insured, including any individual that holds a management position similar to an executive officer for named Form HK 00 04 12 12 FailSafe GIGA® Release 3.0 Page 11 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 insureds that do not have a charter, constitution, by -laws or any other similar governing document, will be imputed to the applicable named insured. D. We will not pay damages or claim expenses or defend any of you for any claim arising out of or in any way related to any actual or alleged glitch or claim that has been reported under any other policy, issued by any entity, when the inception date of that other policy preceded the Start Date of this policy. Section I Nuclear Ener gy Liabilit y Exclusion Broad Form A. This policy does not apply: 1. To any injury or damage: a. With respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters, Nuclear Insurance Association of Canada or any of their successors, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; or b. Resulting from the "hazardous properties" of "nuclear material" and with respect to which 1. any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or 2. the insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization. 2. To any injury or damage resulting from the "hazardous properties" of "nuclear material," if: a. The "nuclear material' 1. is at any "nuclear facility" owned by, or operated by or on behalf of, an insured or 2. has been discharged or dispersed therefrom; b. The "nuclear material" is contained in "spent fuel" or "waste" at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an insured; or c. The injury or damage arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operations or use of any "nuclear facility." B. As used in this exclusion: "Hazardous properties" include radioactive, toxic or explosive properties; "Nuclear material" means "source material," "special nuclear material' or "by- product material;" "Source material," "special nuclear material," and "by- product material" have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; "Spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a "nuclear reactor;" "Waste" means any waste material (a) containing "by- product material" other than the tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its "source material" content, and (b) resulting from the operation by any person or organization of any "nuclear facility" included under the first two paragraphs of the definition of "nuclear facility." "Nuclear facility" means: Form HK 00 04 12 12 FailSafe GIGAG Release 3.0 Page 12 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 1. Any "nuclear reactor;" 2. Any equipment or device designed or used for a. separating the isotopes of uranium or plutonium, b. processing or utilizing "spent fuel," or c. handling, processing or packaging "waste;" 3. Any equipment or device used for the processing, fabricating or alloying of "special nuclear material" if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235; 4. Any structure, basin, excavation, premises or place prepared or used for the storage or disposal of "waste;" and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; "Nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self - supporting chain reaction or to contain a critical mass of fissionable material; Injury or damage includes all forms of radioactive contamination of property. Section 1/ — Limits Of Liability And Retention A. Limits of Liability 1. Each Glitch Limit Subject to A.2 below, the Each Glitch Limit stated in item 4 of the Declarations is the most we will pay for any combination of claim expenses and damages for the total of all claims made during the policy period, including any applicable Extended Reporting Period, arising from one glitch, regardless of the number of: a. you this policy covers; b. claims that are made; or c. persons or entities making claims. An interrelated glitch is subject to the Each Glitch Limit. 2. Aggregate Limit The Aggregate Limit stated in item 4 of the Declarations is the most we will pay for any combination of claim expenses and damages for the total of all claims made during the policy period, including any applicable Extended Reporting Period, regardless of the number of: a. you this policy covers; b. claims that are made; c. persons or entities making claims; or d. glitches that are committed. B. Retention for Each Glitch The Retention stated in item 5 of the Declarations is the amount of money you must pay for covered damages and /or claim expenses for each glitch before this policy will begin to pay. You may not insure the Retention. The Retention will not be reduced by the payment of any deductible amount or any amount retained by any of you under any other policy of insurance; and the Retention will not be reduced by any payment made on your behalf by another person or entity. The Retention will not reduce the Limits of Liability. You will pay the full amount of the Retention for each glitch to appropriate parties as directed by us. If we advance any such payments, you will reimburse us within thirty (30) days of our Form HK 00 04 12 12 FailSafe GIGA® Release 3.0 Page 13 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 written demand. If you fail to make direct payments or to reimburse us as described above, all of you against whom the claim has been made and the named insured are individually and collectively responsible for paying us back for any advance payments we have made and for interest, attorney's fees and costs associated with our collection of the money. A. Terms Applicable to Both Types of Extended Reporting Period An Extended Reporting Period changes the time within which a claim may be made against you and still be reported by you, and considered by us, for coverage in accordance with the terms of this policy. This policy has two types of Extended Reporting Periods: the Basic Extended Reporting Period and the Optional Extended Reporting Period. Both the Basic Extended Reporting Period and the Optional Extended Reporting Period: 1. provide coverage for claims that are first made against you during such applicable Extended Reporting Period, but: a. we will not pay damages or claims expenses or defend any of you for any glitch or claim arising out of or in any way related to any actual or alleged glitch that is committed during an Extended Reporting Period; and b. only if, there is no other insurance for the claim; 2. do not extend the policy period or add to the scope of coverage provided as of the end of the policy period; 3. do not reinstate or increase the Limits of Liability. The Limits of Liability for any Extended Reporting Period will be a part of, and not in addition to, the Limits of Liability listed in the Declarations for the policy period; 4. run concurrently if the Optional Extended Reporting Period is purchased; and 5. are not renewable. All other policy terms and conditions remain the same. B. Basic Extended Reporting Period We will automatically provide a Basic Extended Reporting Period if this policy is: 1. cancelled; 2. non - renewed; or 3. renewed by us with insurance that does not apply on a claims made or claims made and reported basis. The Basic Extended Reporting Period begins with the end of the policy period and lasts for ninety (90) days. C. Optional Extended Reporting Period For an additional premium, we will offer an Optional Extended Reporting Period endorsement, unless this policy is cancelled for non - payment of premium or Retention or for your failure to comply with policy provisions. If the Optional Extended Reporting Period endorsement is purchased, the Optional Extended Reporting Period begins with the end of the policy period and lasts for the period of time stated in the endorsement. 3. Optional Extended Reporting Period coverage is available only if: the first named insured has paid all premiums and Retentions due for this policy at the time the first named insured requests an Optional Extended Reporting Period endorsement; Form HK 00 04 12 12 46 TE 0281457 -14 10/17/14 FailSafe GIGA® Release 3.0 Page 14 of 19 © 2012, The Hartford b. we receive the first named insured's written request for it within thirty (30) days after the end of the policy period; c. the first named insured gives us written acceptance of our offer within fifteen (15) days of the day that we make our offer; and d. we receive payment in full for the Optional Extended Reporting Period within thirty (30) days of the first named insured's acceptance of our offer. 4. Once in effect, the Optional Extended Reporting Period cannot be cancelled. We need not return any part of the premium paid for any reason whatsoever. 5. Premium for the Optional Extended Reporting Period will be determined by taking into account the following: a. the exposures insured; b. previous types and amounts of insurance; c. Limits of Liability available under this policy for future payment of glitches and claim expenses; and d. other related factors. Section VII — Conditions A. Territory This policy applies to glitches committed anywhere in the universe; except this policy does not apply when the claim is made in a country against which the United States government has imposed trade sanctions, embargoes or any similar regulations that prohibit the transaction of business with or within such countries at the time the claim is made. B. Currency The currency of this policy is United States of America dollars. If damages or claim expenses are paid in a currency other than United States dollars, payment will be considered to have been made in United States dollars at the rate of exchange that was used for the payment. If no actual currency exchange was made, then the rate of exchange will be the rate published in The Wall Street. Journal on the day following the date that payment was made. C. Bankruptcy Bankruptcy or insolvency of you or of your estate will not relieve us of our obligations under this policy. D. Cancellation 1. The first named insured may cancel this policy by mailing or delivering to us advance written notice of cancellation. 2. We may cancel this policy by mailing to the first named insured written notice of cancellation at least: a. ten (10) days before the cancellation is effective, if we cancel for non - payment of any premium when due; or b. sixty (60) days before the cancellation is effective, if we cancel for any other reason. 3. We will mail our notice to the address shown in the Declarations for the named insured. 4. Notice of cancellation by us will state when the cancellation is effective. The policy period will end on that date. 5. If this policy is cancelled, we will send the first named insured any premium refund due. If we cancel, the refund will be the pro -rata unearned premium. If the first named Form HK 00 04 12 12 FailSafe GIGAO Release 3.0 Page 15 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 insured cancels, we will compute the return premium at ninety percent (90 %) of the pro - rata unearned premium. 6. Proof of mailing will be sufficient proof of notice. 7. Premium adjustment may be made either at the time cancellation is effected or as soon as practicable after cancellation becomes effective. But payment or tender of unearned premium is not a condition of cancellation. E. When We Do Not Renew 1. If we decide not to renew this policy, we will mail written notice of non - renewal to the first named insured. We will mail the notice at least sixty (60) days before the policy period ends. 2. We will mail it to the address shown in the Declarations for the named insured. Proof of mailing will be sufficient proof of notice. 3. If we offer to renew this policy on the same or different terms and the first named insured does not accept our offer during the current policy period, this policy will expire at the end of the policy period. 4. If there is an inconsistency between the terms and conditions regarding the nonrenewal of this policy stated in a state amendatory endorsement attached to this policy and the terms and conditions of this "When We Do Not Renew" provision, we will apply those terms and conditions that are more favorable to you, where permitted by law. F. Entire Agreement This policy contains all the agreements between you and us concerning this insurance. G. Changes The first named insured is authorized by you to agree with us on all changes in the terms and conditions of this policy. This policy can only be changed by an endorsement that is issued by us. H. Duties in the Event of Glitch or Claim 1. The named insured must notify us in writing as soon as practicable of a glitch or circumstance that may result in a claim under this policy. This requirement applies only when the glitch is known to: a. any person who is a named insured; b. any partner, executive officer, or any individual in an equivalent position of a named insured, including but not limited to individuals that hold management positions similar to an executive officer for any named insured that does not have a charter, constitution, by -laws or any other similar governing document; or c. any individual responsible for the insurance, legal, or financial matters of the named insured including but not limited to General Counsel, Risk Manager, or Insurance Manager of the named insured 2. If during the policy period any of you first become aware of a glitch to which this policy applies which may result in a claim under this policy and give us written notice within the policy period of: a. the specific glitch, the date of the glitch and the name of the potential claimant; b. the damages which have or may result from the glitch; and c. the circumstances by which you first became aware of the glitch; then any claim first made arising out of the glitch will be deemed to have been made on the date we received written notice. All notices or correspondence regarding glitches or claims must be sent to the address(es) or facsimile(s) indicated by endorsement to this policy. Form HK 00 04 12 12 FailSafe GIGA® Release 3.0 Page 16 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 3. If a claim is made against any of you, as soon as any specified insured knows of such a claim, you must: a. immediately record the specifics of the claim and the date received; b. immediately send us copies of all demands, notices, summonses and legal papers received in connection with the claim; c. authorize us to obtain records and other information; d. cooperate with us in the investigation, settlement and defense of the claim; and e. assist us, upon our request, in enforcing any right against any person or entity that may be liable to you or the claimant because of damages to which this policy may also apply. 4. None of you will, except at your own cost, make a payment, assume any obligation or incur any cost without our prior written consent. I. Legal Action Against Us No person or entity has a right under this policy: 1. to join us as a party or bring us into a suit asking for damages from you; or 2. to sue us under this policy unless all of its terms and conditions have been fully complied with. A person or entity may sue us to recover on an agreed settlement or on a final judgment against you obtained after an actual trial or other binding adjudication. But we will not be liable for claim expenses or damages that are not payable under the terms and conditions of this policy or that are more than the applicable Limit of Liability. An agreed settlement means a settlement that we agree to in writing. J. Mergers, Consolidations or Acquisitions 1. If, after the Start Date of this policy shown in the Declarations, the named insured: a. merges or consolidates with another entity; or b. acquires more than fifty percent (50 %) of the assets of another entity, and the named insured is the surviving entity, the entity merged or consolidated with, or acquired by the named insured will be afforded coverage under this policy as a named insured for a period of ninety (90) days or until the expiration of this policy, whichever is less. 2. We may endorse this policy to provide coverage beyond the period of time indicated in item 1. above if, within ninety (90) days of the merger, consolidation or acquisition transaction, you have: a. provided us with full details of the transaction and any other additional underwriting information that we may require; b. agreed to any amendment of the terms and conditions of this policy by endorsement issued by us relating to such transaction; and c. agreed to and paid any additional premium for the endorsement related to such transaction. 3. This policy does not apply to any claim arising from or involving an entity that is merged or consolidated with, or acquired by the named insured for any glitch that was committed when the first named insured did not own directly or indirectly more than fifty percent (50 %) of the issued and outstanding voting stock of the entity. 4. The retroactive date for an entity that was merged or consolidated with, or acquired by the named insured will be the date of the merger, consolidation or acquisition by the named insured. We may endorse this policy to provide a different retroactive date for such entity, if applicable information is provided to demonstrate similar coverage has been continuously maintained by the entity. Form HK 00 04 12 12 FailSafe GIGAO Release 3.0 Page 17 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 5. If after the Start Date of this policy shown in the Declarations: a. the first named insured merges into or consolidates with another entity and the named insured is not the surviving entity; or b. more than 50% of the securities representing the right to vote for the first named insured's board of directors or managers is acquired by another person or entity, group of persons or entities, or persons and entities acting in concert; then coverage shall continue under this policy and any renewal or replacement hereof but only for glitches occurring prior to any such transaction. The first named insured shall give us written notice and full, written details of such transaction as soon as practicable (but, in all cases, within ninety (90) days of such transaction). If any transaction described herein occurs, then we will not be obligated to offer any renewal or replacement of this policy. K, Other Insurance and Payments Available to You Coverage under this policy will apply only in excess of all other: 1. insurance, except for other insurance that is written specifically to apply in excess over this policy; 2. bonds, self- insured retentions, deductibles, indemnifications; or 3. similar agreements or payment options available to you whether they are stated to be primary, pro rata, contributory, contingent or otherwise. L, Payment of Premiums and Retention The first named insured must pay all premiums and Retentions when due. We will pay any return premiums to the first named insured. M, Transfer of Rights of Recovery Against Others to Us You must do nothing to impair your rights to recover all or any part of any payment we have made under this policy, and those rights are transferred to us. At our request you will bring suit or transfer those rights to us and help us enforce them. Any recoveries will be paid first to reimburse the person or entity that paid the subrogation costs, then to us for the amount we have paid for claim expenses and damages. Any amount that may remain will be paid to the first named insured. N. 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 or bankruptcy. If you die or become bankrupt, 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. O. Representations and Statements By accepting this policy, you agree to all of the following: 1. the representations and statements contained in the application for coverage and other information submitted to us in applying for this policy are accurate and complete; they were made to induce our reliance upon them; 2. the representations and statements made to us in the application and other information submitted to us were made by the named insured on behalf of all of you; they are material to our decision to provide coverage; they are considered as incorporated in and constituting part of this policy; 3. we have issued this policy in reliance upon those representations and statements; 4. in the event the application or other information submitted to us contains misrepresentations or fails to state facts which affect our acceptance of the risk, the hazard assumed by us, the terms or conditions of this policy we offered or the premium Form HK 00 04 12 12 FailSafe GIGA® Release 3.0 Page 18 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 we charged for this policy, we will not pay for any claim expenses or damages relating to a glitch or claim under this policy; and 5. if you report any glitch or claim knowing it, or any of the representations and statements regarding the glitch or claim, to be false or fraudulent, this insurance will not make payments for the glitch or claim. Form HK 00 04 12 12 FailSafe GIGA® Release 3.0 Page 19 of 19 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 Policy Number: 46 TE 0281457 -14 Effective Date of the Endorsement: Named Insured and Address: NMK CORPORATION DBA IPTELSUPPORT 286 TULIP TREE LANE ORANGE, CA 92865 Endt. No. 1 10/17/14 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. SIGNATURE ENDORSEMENT We have caused this policy to be signed by our President and a Secretary, but it will not be binding unless countersigned on the Declarations page by our fully authorized representative. Terence Shields, Secretary Form HK 99 70 01 07 © 2007, The Hartford FailSafeO Andre A. N- apoli, President Page 1 of 1 Policy Number: 46 TE 0281457 -14 Effective Date of the Endorsement Named Insured and Address: NMK CORPORATION DBA IPTELSUPPORT 286 TULIP TREE LANE ORANGE, CA 92865 Endt. No. 2 10/17/14 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. MANAGEMENT CONSULTANT SERVICES ENDORSEMENT 1. Section I - Coverage, A., the definition of technology services is amended to add; management consultant services. 2. Section II - Definitions is amended to add the following: -- management consultant services means the following services performed for others: 1. analysis of management, strategic direction, operational processes, and marketing activities of your client; and your identification, assessment and advice arising out of such analysis; and 2. consultative advice to your client on the following: • business communication; • business and leadership coaching; • corporate training; • economic research; • expense savings; • human resources; • market research; • public relations; and • organizational structure. 3. Section III - Exclusions, subsection A, is amended to add the following: • guarantee of the availability of funds, a specific rate of return, or a specific interest rate; • governmental intervention, cease and desist order, insolvency, receivership, bankruptcy, licensing or liquidation or any organization (directly or indirectly) in which you have placed or obtained insurance coverage or placed the funds of a client or account; • warranties or guarantees as to the future value of investments; • damages alleged to have been sustained through fluctuation in the market value of any security; • warranties or guarantees associated with potential sales, earnings, profitability, or economic value; • performance of or failure to perform services as an accountant, architect, civil or structural engineer, dentist, doctor, insurance agent, insurance broker, lawyer, mortgage broker, mortgage banker, nurse, or pharmacist; or • management consultant services related to construction activities. All other terms and conditions remain unchanged. Andre A. Napoli, President Form HK 03 56 12 12 FailSafe® Page 1 of 1 0 2012, The Hartford Policy Number: 46 TE 0281457 -14 Effective Date of the Endorsement: 10/17/14 Named Insured and Address: NMI{ CORPORATION DBA IPTELSUPPORT 286 TULIP TREE LANE ORANGE, CA 92865 Endt. No. 3 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FIRST PARTY DATA PRIVACY EXPENSE AND CYER EXTORTION COVERAGE ENDORSEMENT You and we agree that: The Limits of Liability stated in item 4 of the Declarations Page is amended to add the following Limits of Insurance: First Party Expense Aggregate Limit $ 5.000 The above First Party Expense Aggregate Limit is a sub -limit of insurance that is part of, and not in addition to, the Aggregate Limit stated in item 4 of the Declarations. Payments made under the First Party Expense Aggregate Limit will reduce and may exhaust the Aggregate Limit of the policy. A Data Privacy Wrongful Act Continuity Date is added to item 3 of the Declarations Page:: Data Privacy Wrongful Act Continuity Date 10/17/13 If the space for the Data Privacy Wrongful Act Continuity Date is left blank, the Data Privacy Wrongful Act Continuity Date will be the same as the Start Date stated in item 2 of the Declarations. A First Party Expense Retention is added to item 5 of the Declarations Page: First Party Expense Retention $ 5,000 If the space for the First Party Expense Retention is left blank, the First Party Expense Retention will be the same as the Retention Each Glitch stated in item 5 of the Declarations. Section I — Coverage, Subsection A. Insuring Agreement is amended to add: We will also reimburse the named insured for its payment of the first party expenses elected below up to the First Party Expense Aggregate Limit and in excess of the First Party Expense Retention. The following first party expenses are provided if elected and designated with an 'X' hereon: ® notification expenses coverage Form HK 04 09 12 12 FailSafe° Page 1 of 5 © 2012, The Hartford We will reimburse the named insured for notification expenses that directly result from a data privacy wrongful act negligently committed by the named insured or when caused by the acts of a negligently supervised rogue employee. OX crisis management expenses coverage We will reimburse the named insured for crisis management expenses that directly result from a data privacy wrongful act negligently committed by the named insured or when caused by the acts of a negligently supervised rogue employee. data privacy regulatory and credit monitoring expenses coverage We will reimburse the named insured for data privacy regulatory and credit monitoring expenses, provided such expenses directly result from a data privacy wrongful act negligently committed by the named insured or when caused by the acts of a negligently supervised rogue employee. cyber investigation expenses coverage We will reimburse the named insured for cyber investigation expenses that directly result from a data privacy wrongful act negligently committed by the named insured or when caused by the acts of a negligently supervised rogue employee. X1 cyber extortion expenses coverage We will reimburse the named insured for cyber extortion expenses that directly result from a cyber extortion threat communicated to the named insured by a person or group, who is not insured under this policy. Section I — Coverage, Subsection C. When We Insure is amended to add: The first parry expenses coverage offered under this policy applies to a data privacy wrongful act or cyber extortion threat only if all of the following applicable terms are met: 1. the data privacy wrongful act was first committed on or after the Data Privacy Wrongful Act Continuity Date and before the end of the policy period; 2. the data privacy wrongful act is first discovered during the policy period; 3. the data privacy wrongful act is reported to us in writing as soon as practicable but no later than sixty (60) days from the discovery of the data privacy wrongful act by a specified insured; 4. before the Start Date of this policy shown in the Declarations, no specified insured knew of or should have reasonably known of the data privacy wrongful act; 5. first party expenses, other than cyber extortion expenses, must be incurred by the named insured within twelve (12) months of the date the data privacy wrongful act is reported to us. In the event a data privacy regulation proceeding does not conclude within this twelve (12) month period, the named insured will have ninety (90) days from the conclusion of such data privacy regulation proceeding to make full payment of first party expenses associated with such data privacy regulation proceeding. 6. the cyber extortion threat was first committed during the policy period; 7. the cyber extortion threat is reported to us in writing as soon as practicable but no later than sixty (60) days from the date the cyber extortion threat is committed; and 8. prior to surrendering cyber extortion payments, the named insured conducts a reasonable investigation and reasonably determines that the threat is technologically credible. There is no coverage for data privacy wrongful acts or cyber extortion threats during any Extended Reporting Period offered under this policy. No Extended Reporting Period available to any of you shall apply to any first party expenses. Form HK 04 09 12 12 FailSafe® Page 2 of 5 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 Section II - Definitions, item 2. of the definition of subsidiary is deleted and replaced with the following: 2. This policy does not apply to any claim or first party expenses arising from or involving a subsidiary for any glitch, data privacy wrongful act, or cyber extortion threat that was committed when the first named insured did not own directly or indirectly more than fifty percent (50 %) of the issued and outstanding voting stock of the subsidiary. Section III - Exclusions, is amended in the following manner: • The phrase "We will not pay damages or claim expenses" is deleted and replaced with: "We will not pay damages, first party expenses, or claim expenses" wherever it appears. • Subsection A„ item 2. is amended to add the following: However, this exclusion will not apply to first party expenses as a result of the loss of the named insured's leased or owned computer hardware including mobile, networked, and data storage computing equipment; 0 Subsection A., item 12. is amended to add the following: However, this exclusion will not apply to first party expenses that the named insured becomes legally required to pay as a result of a data privacy wrongful act; M Subsection C., the introductory phrase is deleted and replaced with: We will not pay damages, first party expenses, or claim expenses for any data privacy wrongful act, cyber extortion threat, glitch, or claim arising out of or in any way related to any: r Subsection D. is deleted and replaced with the following: D. We will not pay damages, first party expenses, or claim expenses or defend any of you for any claim arising out of or in any way related to any actual or alleged data privacy wrongful act, cyber extortion threat, glitch, or claim that has been reported under any other policy, issued by any entity, when the inception date of that other policy preceded the Start Date of this policy. Section III - Exclusions, is amended to add the following: « We will not pay first party expenses arising out of or in any way related to any actual or alleged: -- failure to provide adequate notice regarding the purposes for which nonpublic personal information is collected and used; -- shortcoming in the named insured's computer system and network that a specified insured knew about prior to the inception date of this policy; -- failure to implement reasonable steps to use, design, maintain and update the named insured's computer system and network to prevent unauthorized access to or unauthorized use of nonpublic personal information, including failure to secure nonpublic personal information on the named insured's computer system and network; -- failure to use best efforts to install commercially available software product updates and releases, or apply security related software patches, to computers and other components of the named insured's computer system and network. -- data privacy wrongful act or cyber extortion threat resulting from your failure to comply with all data security standards required by credit card or financial institutions that you utilize to process, store, or handle credit card information; -- intentional failure by you to disclose the loss of nonpublic personal information arising from a data privacy wrongful act if any specified insured knew of such data privacy wrongful act; or -- inability to use or lack of performance of software: 1. due to expiration, cancellation or withdrawal of such software; 2. that has not been released from its developmental state; or 3. that has not passed all test runs or proven successful in applicable daily operations. Section V - Limits of Liability and Retention, Subsection A. Limits of Liability is amended to add: 3. First Party Expense Aggregate Limit Form HK 04 09 12 12 FailSafe° Page 3 of 5 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 Subject to A.2 of Section V — Limits of Liability and Retention, the First Party Expense Aggregate Limit indicated in this endorsement is the most we will pay for the total of all first party expenses resulting from data privacy wrongful acts or cyber extortion threats that apply to this policy, regardless of the the number of: a. named insureds this policy covers; b. data privacy wrongful acts that are committed; or c. cyber extortion threats that are committed. Section V — Limits of Liability and Retention is amended to add: C. First Party Expense Retention The First Party Expense Retention stated in this endorsement is the amount of money the named insured must pay for covered first party expenses for each data privacy wrongful act or cyber extortion threat, whichever is applicable, before this policy will begin to pay. The named insured may not insure the First Party Expense Retention. The First Party Expense Retention will not be reduced by the payment of any deductible amount or any amount retained by any named insured under any other policy of insurance; and the First Party Expense Retention will not be reduced by any payment made on the named insured's behalf by another person or entity. The First Party Expense Retention will not reduce the First Party Expense Aggregate Limit. Section VII — Conditions is amended in the following manner: Items A. Territory and B. Currency are deleted and replaced with the following: A. Territory This policy applies to glitches, data privacy wrongful acts, and cyber extortion threats committed anywhere in the universe; except this policy does not apply when the claim is made, or the first party expenses are incurred, in a country against which the United States government has imposed trade sanctions, embargoes, or any similar regulations that prohibit the transaction of business with or within such countries at the time the claim is made or the first party expenses are incurred. B. Currency The currency of this policy is United States of America dollars. If damages, first parry expenses, or claim expenses are paid in a currency other than United States dollars, payment will be considered to have been made in United States dollars at the rate of exchange that was used for the payment. If no actual currency exchange was made, then the rate of exchange will be the rate published in The Wall Street Journal on the day following the date that payment was made. Item J. Mergers, Consolidations or Acquisitions, subsection 3 is deleted and replaced with the following: 3. This policy does not apply to any claim or first party expenses arising from or involving an entity that is merged with, consolidated or acquired by the named insured for any glitch, data privacy wrongful act, cyber extortion threat that was committed when the first named insured did not own directly or indirectly more than fifty percent (50 %) of the issued and outstanding voting stock of the entity. Item O. Representations and Statements, subsections 4 and 5 are deleted and replaced with the following: 4. in the event the application or other information submitted to us contains misrepresentations or fails to state facts which affect our acceptance of the risk, the hazard assumed by us, the terms or conditions of the policy we offered or the premium we charged for this policy, we will not pay for any claim expenses, damages, or first party expenses relating to a glitch, claim, data privacy wrongful act, or cyber extortion threat under this policy; and 5. if you report any glitch, claim, data privacy wrongful act, or cyber extortion threat knowing it, or any of the representations and statements regarding the glitch, claim, data privacy wrongful act, or cyber extortion threat, to be false or fraudulent, this insurance will not make payments for the glitch, claim, data privacy wrongful act, or cyber extortion threat. The following section is added; Form HK 04 09 12 12 FailSafe® Page 4 of 5 © 2012, The Hartford 46 TE 0281457 -14 10/17/14 P. Duties in the Event of a Data Privacy Wrongful Act or Cyber Extortion Threat 1. The named insured must notify us in writing as soon as practicable of any data privacy wrongful act or cyber extortion threat for which the named insured seeks first party expenses coverage under this policy. Such notice must be reported to us within sixty (60) days of: a. discovery of the data privacy wrongful act by a specified insured; or b. the date the cyber extortion threat is committed, whichever is applicable. The named insured shall obtain prior written approval from us prior to incurring first parry expenses. 2. All notices or correspondences regarding data privacy wrongful acts or cyber extortion threats must be sent to the addresses indicated by endorsement to this policy for notices or correspondences regarding glitches and claims. 3. If a data privacy wrongful act or cyber extortion threat occurs, you must: a. immediately record the specifics of the data privacy wrongful act or cyber extortion threat and the date it occurred; b. immediately send us copies of all applicable demands, notices, summonses and legal papers received in connection with the data privacy wrongful act or cyber extortion threat; c. authorize us to obtain records and other information; d. cooperate with us in the investigation of the data privacy wrongful act or cyber extortion threat; and e. assist us, upon our request, in enforcing any right against any person or entity that may be liable to you for the first parry expenses that may be applicable to this coverage endorsement. 4. None of you will, except at your own cost, make a payment, assume any obligation, or incur any cost without our consent. All other terms and conditions remain unchanged. Andre A. Napoli, President Form HK 04 09 12 12 FailSafe® © 2012, The Hartford 46 TE 0281457 -14 10/17/14 Page 5 of 5 Policy Number: 46 TE 0281457 -14 Effective Date of this Endorsement: 10/17/14 Named Insured and Address: NMK CORPORATION DBA IPTELSUPPORT 286 TULIP TREE LANE ORANGE, CA 92865 Endt. No, 4 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ASBESTOS EXCLUSION You and we agree that: Section II - Definitions is changed to add the following: Asbestos hazard means an exposure or threat of exposure to the actual or alleged properties of asbestos and includes the mere presence of asbestos in any form. Section III - Exclusions, subsection A is changed to add the following: - asbestos hazard, including any: 1. threatened loss, injury or damage of any nature or kind to persons or property which would not have occurred in whole or in part but for the asbestos hazard; 2. request, demand or order to test for, monitor, clean up, remove, encapsulate, contain, treat, detoxify or neutralize or in any way respond to or assess the effects of an asbestos hazard; or 3. testing for, monitoring, cleaning up, removing, encapsulating, containing, treating, detoxifying or neutralizing or in any way responding to or assessing the effects of an asbestos hazard. All other terms and conditions of the policy remain unchanged, Form HK 21 28 11 01 FailSafe" 0 2001, The Hartford Page 1 of 1 Policy Number: 46 TE 0281457 -14 Effective Date of the Endorsement: 10/17/14 Named Insured and Address: NMK CORPORATION DBA IPTELSUPPORT 286 TULIP TREE LANE ORANGE, CA 92865 Endt. No. 5 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. UNSOLICITE D SENDING OF INFORMATION EXCLUSION Section III - Exclusions, A., of the policy is amended by the addition of the following: -- Sending of information by fax, electronic mail (e- mail), or via any other means, where prohibited by law; All other terms and conditions remain unchanged. David Zwiener, President Form HK 21 45 0404 Page 1 of 1 FailSafeO ©2004, The Hartford Policy Number: 46 TE 0281457 -14 Effective Date of the Endorsement: 10/17/14 Named Insured and Address: NMK CORPORATION DBA IPTELSUPPORT 286 TULIP TREE LANE ORANGE, CA 92865 Endt. No. 6 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAR, HOSTILE LOSS OR TERRORISM EXCLUSION You and we agree that: Section II — Definitions is changed to add the following; Hostile loss means: 1. confiscation, nationalization, requisition, seizure, destruction of or damage to property of any nature, tangible or intangible, infrastructure or service; 2. interruption or termination of services; or 3. use of military or usurped power or the imposition of martial law by or under the order of any governmental or other authority; terrorist; or military or armed person or group Terrorism means any act against any person, organization or property of any nature, tangible or intangible, infrastructure or service: 1. that involve the following or preparation for the following: a. use or threat of force or violence; or b. commission or threat of a dangerous act; or c. commission or threat of an act that interferes with or disrupts an electronic, communication, information or mechanical system; and 2. when one or both of the following applies: a. the effect is to intimidate or coerce a government or the civilian population or any segment thereof, or to disrupt any segment of the economy; or b. it appears that the intent is to intimidate or coerce a government, or to further political, ideological, religious, social or economic objectives or to express (or express opposition to) a philosophy or ideology. B. The following exclusion is added: Section III — Exclusions, Subsection A is changed to add the following: We will not pay for damages or claim expenses or defend any of you for any glitch or claim arising out of or in any way related to any actual or alleged: 1. war, including undeclared or civil war; or 2. warlike action, including action in hindering or defending against an actual, threatened or expected attack, by a military force, any government, sovereign or other authority using military personnel or other agents; or 3. insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these; HK 31 05 03 05 © 2005, The Hartford Page 1 of 2 (Includes copyrighted material of Insurance Services Office, Inc., with its permission.) 4. hostile loss, including any action taken in hindering or defending against an actual or expected hostile loss; or 5. terrorism, including any action taken in hindering or defending against an actual, or expected incident of terrorism regardless of any other cause or event that contributes concurrently or in any sequence to the glitch or claim. However, with respect to terrorism, this exclusion only applies to claims arising from activities: (a) determined by any government body or government official to be an act of terrorism; or (b) that We reasonably believe to be committed on behalf of, in concert with or at the behest of an organization, group, cell or network listed in Executive Order 13224 or any addition thereto or replacement thereof; including an organization, group, cell or network which is added to such order as a result of the act of terrorism. All other terms and conditions remain unchanged. David Zwiener, President HK 31 05 03 05 © 2005, The Hartford Page 2 of 2 (Includes copyrighted material of Insurance Services Office, Inc., with its permission.) 46 TE 0281457 -14 10/17/14 Policy Number: 46 TE 0281457 -14 Effective Date of the Endorsement: 10/17/14 Named Insured and Address: NMK CORPORATION DBA IPTELSUPPORT 286 TULIP TREE LANE ORANGE, CA 92865 Endt. No. 7 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDRESS FOR GLITCH OR CLAIM NOTIFICATION OR CORRESPONDENCE ENDORSEMENT T You and we agree that: Section VII - Conditions is changed to add the following: All notices or correspondence regarding glitches or claims must be sent to the attention of The Hartford Hartford Financial Products Claims Department to one or more of the following: By Mail; 277 Park Avenue, 15th Floor New York, NY 10172 By email: h claims thehartford.com By facsimile: 917 - 464 -6000 All other terms and conditions of the policy remain unchanged, Andr6 A. Napoli, President Form HK 23 01 12 12 FailSafe@ Page 1 of 1 © 2012, The Hartford Policy Number: 46 TE 0281457 -14 Effective Date of the Endorsement: 10/17/14 Named Insured and Address: NMK CORPORATION DBA IPTELSUPPORT 286 TULIP TREE LANE ORANGE, CA 92865 Endt. No. 8 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CALIFORNIA CHANGES You and we agree that: The definition of Damages in Section II — Definitions, is amended to add the following:: This policy does not provide coverage for punitive, exemplary or multiplied damages in the State of California, All other terms and conditions remain unchanged. Andre A. Napoli, President Form HK 01 04 12 12 FailSafe® Page 1 of 1 © 2012, The Hartford (Includes copyrighted material of Insurance Services Office, Inc. with its permission.) This endorsement, effective 12:01 am, 10/17/14 of policy number 46 TE 0281457 -14 issuedto: NMK CORPORATION DBA IPTELSUPPORT by: HARTFORD FIRE INSURANCE CO. ENDORSEMENT NO: forms part THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CALIFORNIA CANCELLATION AND NONRENEWAL ENDORSEMENT Wherever used in this endorsement: 1) "Insurer' means the insurance company which issued this policy; and 2) "Insured" means the Name of Insured, Name of Company, Name of Partnership, Parent Company, Name of Insured Plan or Trust, Name of Insured Entity, Named Entity, Named Real Estate Investment Trust(s), Name of Sponsor Company or Insured stated in ITEM A or ITEM 1 of the Declarations Page. The Cancellation provision of the Policy is deleted and replaced by the following: NOTICE OF CANCELLATION A. The Insured shown in the Declarations may cancel the Policy by mailing or delivering to the Insurer advance written Notice of Cancellation stating when thereafter such cancellation shall be effective. B,. If this Policy has been in effect for sixty (60) days or less and is not a renewal of a policy issued by the Insurer, then this Policy may be canceled by the Insurer for any reason. C. If the Policy has been in effect for more than sixty (60) days or if it is a renewal, effective immediately, the Insurer may not cancel the Policy unless such cancellation is based on one or more of the following reasons: 1. Nonpayment of premium, including payment due on a prior policy issued by the Insurer and due during the current policy term covering the same risks. 2. A judgement by a court or an administrative tribunal that the Insured has violated any law of this state or of the United States having as one of its necessary elements an act which materially increases any of the risks insured against. 3. Discovery of fraud or material misrepresentation by either of the following: The Insured or other Insured(s) or its representative in obtaining the insurance; or b. The Insured or its representative in pursuing a Claim under the Policy, 4. Discovery of willful or grossly negligent acts or omissions, or of any violations of state laws or regulations establishing safety standards, by the Insured or other Insured(s) or a representative of same, which materially increase any of the risks insured against. 5. Failure by the Insured or other Insured(s) or a representative of same to implement reasonable loss control requirements which were agreed to by the Insured as a condition of policy issuance or which were conditions precedent to the use by the Insurer of a particular rate or rating plan if the failure materially increases any of the risks insured against. HR 04 H001 01 0905 © 2005, The Hartford Page 1 of 3 ENDORSEMENT NO: 6, A determination by the Commissioner of Insurance that the loss of, or changes in, Insurer's reinsurance covering all or part of the risk would threaten the financial integrity or solvency of the Insurer. 7. A determination by the Commissioner of Insurance that a continuation of the policy coverage could place the Insurer in violation of the laws of this state or the state of its domicile or that the continuation of coverage would threaten the solvency of the Insurer. 8. A change by the Insured or other Insured(s) or a representative of same in the activities or property of the commercial or industrial enterprise which results in a materially added risk, a materially increased risk or a materially changed risk, unless the added, increased, or changed risk is included in the Policy. D. If this is an excess policy, in addition to the reasons provided in section B. above, this policy can be cancelled for the following reasons: 1. A material change in limits, type or scope of coverage, or exclusions in one or more of the underlying policies. 2, Cancellation or nonrenewal of one or more of the underlying policies where such policies are not replaced without lapse. 3. A reduction in financial rating or grade of one or more insurers, insuring one or more underlying policies based on an evaluation obtained from a recognized financial rating organization. E. Notice of Cancellation shall be delivered or mailed to the producer of record and the Insured at least thirty (30) days prior to the effective date of cancellation. Where cancellation is for nonpayment of premium or fraud, notice shall be given no less than ten (10) days prior to the effective date of cancellation. The Notice of Cancellation shall include the effective date of the cancellation and the reasons for the cancellation. F, If this Policy is cancelled by the Insurer, the Insurer will send the Insured a refund of any unused premium. If this Policy is cancelled by the Insured, the Insurer will send the Insured any unused premium less a charge for early cancellation. The Insurer will send the premium refund to the Insured's last known mailing address. The following provision is added: NOTICE OF NONRENEWAL A. If the Insurer decides not to renew the Policy, the Insurer shall mail or deliver to the producer of record and the Insured Notice of Nonrenewal at least sixty (60) days but no more than one hundred twenty (120) days prior to the end of the expiration date or anniversary date of the Policy. The Notice of Nonrenewal shall contain the reason for nonrenewal of the Policy. B. The Insurer is not required to send Notice of Nonrenewal in the following situations: 1. If the transfer or renewal of a policy, without any changes in terms, conditions or rates, is between the Insurer and a member of the Insurer's insurance group. 2. If the Policy has been extended for ninety (90) days or less, provided that notice has been given in accordance with the nonrenewal notice requirements cited in paragraph A above in the Nonrenewal Section. 3. If the Insured has obtained replacement coverage, or has agreed, in writing, within sixty (60) days of the termination of the Policy, to obtain that coverage. 4. If the Policy is for a period of no more than sixty (60) days and the Insured is notified at the time of issuance that it will not be renewed. HR 04 H001 01 0905 0 2005, The Hartford Page 2 of 3 ENDORSEMENT NO: If the Insured requests a change in the terms or conditions or risks covered by the Policy within sixty (60) days prior to the end of the Policy Period. If the Insurer has made a written offer to the Insured, in accordance with the time frames shown in the non - renewal notice requirements cited in paragraph A above in the Nonrenewal Section, to renew the Policy under changed terms or conditions or at an increased premium rate. All other terms and conditions remain unchanged. David Zwiener, President HR 04 H001 01 0905 0 2005, The Hartford Page 3 of 3 Producer Compensation Notice You can review and obtain information on The Hartford's producer compensation practices at www.thehartford.com or at 1- 800 - 592 -5717. F- 5267 -0 HR 00 H093 00 0207 46 TE 0281457 -14 10/17/14 © 2007, The Hartford Page 1 of 1 September 28th, 2015 NMK Corporation dba IPTelSupport 286 Tulip Tree Lane Orange, CA 92865 Lili Sandoval City of El Segundo 350 Main Street El Segundo, CA 90245 -3813 Dear Ms. Sandoval, I am writing in regards to my company, NMK Corporation, in order to confirm to your organization that I am the sole owner /employee of the corporation. As a result, I am not required to carry worker's compensation coverage. Should you have any questions, please do not hesitate to contact me at the e-mail address listed below. Sincerely, A /J_ - / eZ4_ - Nabeel Khatri iNabeel@gmail.com