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:te: 4/16/2004 Time: 10:01 AM To: Thompki*-, Carla 9 1-714-647-6549 Page: 007-011 PI-NP-003 (5/01) (3) Directly or indirectly related to the sale, rental, lease or sublease or prospective sales, rental, lease or sub -lease of any room, dwelling or premises by or at the direction of any insured; or (4) Insurance for such discrimination is prohibited by or held in violation of law, public policy. legislation, court decision or administrative ruling. The insurance afforded by H.1.b. above does not apply to fines or penalties imposed because of discrimination. I. Unintentional Failure To Disclose Hazards It is agreed that based on our reliance on your representations as to existing hazards, if you should unintentionally fad to disclose all such hazards prior to the beginning of the policy period of this Coverage Part we shall not deny coverage under this Coverage Part because of such failure. J. Liberaltzation If we revise this endorsement to provide more coverage without additional premium charge, we will automatically provide the additional coverage to all endorsement holders as of the day the revision is effective in your state. K. Employee Indemnification Defense Coverage Under SUPPLEMENTARY PAYMENTS — COVERAGES A AND B the following is added: 3. We will pay on your behalf defense costs incurred by an "employee" in a criminal proceeding. However, you must have a prior written agreement with such "employee" whereby you agree to indemnify the "employee' for such defense costs and the agreement includes a provision for repayment of defense costs in the event of an adverse judgement. The most we vn11 pay for any "employee^ who is alleged to be directly involved in a criminal proceeding is $25,000 regardless of the number of employees, claims or "suits" brought or persons or organizations making claims or bringing "suits." L. Extended "Property Damage" SECTION 1— COVERAGES, COVERAGE A, 2. Exclusions a. is deleted and replaced by the following: a. Expected or Intended Injury "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. M. Additional Insured- Funding Source Under SECTION 11- WHO IS AN INSURED the following is addded: 5. Any person or organization with respect to their liability arising out of: a. Their financial control of you; or b. Premises they own, maintain or control while you lease or occupy these premises. Thisinsurance does not apply to structural alterations, new construction and demolition operations performed by or for that person or organization. N. Additional Insured- Managers or Lessors of Premises Under SECTION 11- WHO IS AN INSURED the following is added: 6. Any person or organization with respect to their liability arising out of the ownership, maintenance or use of that part of the premises leased to you subject to the following additional exclusions: This insurance does not apply to: a. Any "occurrence" which takes place after you cease to be a tenantinthat premises. — b. Structural alterations, new construction or demolition operations performed by or on behalf of Mat person or organization. O. General Aggregate Limit Per location Page 4 of 5 Includes COPYright material of the Insurence Services Offloe, Inc. used with Its permission.