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DATA BREACH COVERAGE - DEFENSE AND LIABILITY 15. In connection with a "data breach claim" caused by the failure to comply with any state, federal or foreign regulation and/or self - regulatory requirements around minimum data security standards, including, but not limited to, the Fair and Accurate Credit Transaction Act (FACTA), and Song Beverly Act or similar statutes. However, this exclusion does not apply to reasonable and necessary legal fees and expenses incurred in the defense of a "regulatory proceeding". F. WHO IS AN INSURED If you are designated in the Policy Declarations as: 1. 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. 2. 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. 3. 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. 4. 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. 5. A trust, you are an insured. Your trustees are also insureds, but only with respect to their duties as trustees. G. CONDITIONS 1. The first named insured must pay all premiums when due. We will pay any return premium to the first named insured. 2. If valid and collectible insurance is available for a "loss" we cover under this Coverage Part, we will share with that other insurance. If all the other insurance permits contribution by equal shares, we will follow this method also. Under this approach each insurer contributes by equal amounts until it has paid its applicable limit of insurance or none of the "loss" remains, whichever comes first. If 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. 3. If you refuse to consent to a settlement or compromise recommended by us and elect to contest the "data breach claim", our liability Page 4 of 5 shall not exceed the amount for which we would have been liable for "loss" if the "data breach claim" had been so settled when and as so recommended, (minus any applicable deductible) and we shall have the right to withdraw from the further defense of the "data breach claim" by tendering control of the defense thereof to you. 4. Immediately upon discovery of a "data breach", you must take all reasonable steps to mitigate potential damages to third parties by providing reasonable and necessary notification, monitoring and other services, as directed through our designated third party provider or by a third party provider that is approved by us. 5. Our obligation to pay "loss" will only be in excess of the applicable deductible as stated in the Coverage Part Declarations. H. BASIC EXTENDED REPORTING PERIOD We will automatically provide a Basic Extended Reporting Period if this Coverage Part 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 30 days. The Basic Extended Reporting Period is provided at no charge. Under this provision, you have 30 days after the end of the "policy period" to report to us in writing "data breach claims" first made against any of you during the "policy period". The Basic Extended Reporting Period will not reinstate or increase the Limits of Insurance. SUPPLEMENTAL EXTENDED REPORTING PERIOD A Supplemental Extended Reporting Period is available, but only by an endorsement and for an extra charge. This supplemental period, if purchased, will run concurrently with the automatic Extended Reporting Period set forth in paragraph H. above. You must give us a written request for the endorsement within 30 days after the end of the "policy period". The Supplemental Extended Reporting Period will not go into effect unless you pay the additional premium promptly when due. The Supplemental Extended Reporting Period will not reinstate or increase the Limits of Insurance ew cF RAMwagementDMsian Jy/ \'x REVIEWED & APPROVED BY.- V"° --� Risk janagement Analyst