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a. not done intentionally by or at the direction of: <br />(1 } the insured; or <br />(2) any executive officer, director, stockholder, partner or member of the insured staff; and <br />b. not directly or indirectly related to the employment, prospective employment or termination of employment <br />of any person or persons by any insured. <br />The insurance afforded under this provision does not apply to fines or penalties, or that porfion of any award or <br />judgment caused by trebling or multiplication of actual damages under state or federal law. <br />This provision does not apply if Coverage B -Personal and Advertising Injury Liability is otherwise excluded <br />either by the provisions of this Coverage Form or by any endorsement. <br />19. PRODUCT RECALL EXPENSE <br />a. With respect to this Provision 19., the Recall Of Products, Work Or Impaired Property exclusion under <br />Coverage A Bodily Injury And Property Damage Liability is deleted. <br />b. The following is added to Section III -Limits Of Insurance section: <br />1. The Limits of Insurance shown in the Product Recall Schedule and rules below fix the most we will pay <br />regardless of the number of <br />(a) Insureds; <br />(b) "Covered recalls" initated; or <br />(c} Number of "your products" recalled. <br />2. The Product Recall Aggregate Limit is the most we will reimburse you for the sum of all "product recall <br />expenses" incurred far all "covered recaps" initiated during the policy period. <br />3. Subject to 2. above, the Each Product Recall Limit is the most we will reimburse you for the sum of all <br />"product recall expenses" arising out of any one "covered recall" for the same defect or deficiency. <br />Products Recall Schedule <br />Limits of Insurance <br />Product Recall Aggregate $50,000 <br />limit <br />Each Product Recall Limit $25,000 <br />The Limits of Insurance for this coverage apply separately to each consecutive annual period and to any <br />remaining period of less than 12 months, starting with the beginning of the policy period shown in the Decla- <br />rations, unless the policy period is extended after issuance for an additional period of less than 12 months. <br />In that case, the additional period will be deemed part of the last preceding period for the purposes of de- <br />termining the Limits of Insurance. <br />c. The follov~ing is added to the Duties In The Event Of Occurrence, Offense, Claim Or Suit provision <br />under Section IV -Conditions: <br />You must see to it that the following are done in the event of an actual or anticipated "covered recall" that <br />may result in "product recall expense": <br />1. Give us prompt notice of any discovery or notification that "your product" must be withdrawn or recalled. In- <br />clude adescription of "your product" and the reason for the withdrawal or recall; <br />2. Cease any further release, shipment, consignment or any other method of distribution of like or similar <br />products until it has been determined that all such products are free from defects that could be a cause of <br />loss under this insurance; <br />3. As often as may be reasonably required, permit us to inspect "your product" that demonstrates the need for <br />the "covered recall" and permit us to examine your books and records. Also permit us to take damaged and <br />undamaged samples of "your products" for inspection, testing and analysis; and permit us to make copies <br />from your books and records; <br />4. Send us a signed, sworn, proof of loss containing the information we requested to settle the claim. You <br />must do this within 60 days after our request. We will supply you with the necessary forms; and <br />5. Permit us to examine any insured under oath, while not in the presence of any other insured and at such <br />times as may reasonably be required, about any matter relating to this insurance or your claim, including an <br />insured's books and records. In the event of an examination, an insured's answers must be signed. <br />Page 6 of 7 Includes wpynghted material or Insurance Services Oftice, Inc. VCG 205 02 05 <br />CoP)Tlght 2004, !111111111I!!i 11, 1,i1111111,I!I III 111111 IIIIIII!I!1^ <br />