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PI -FW -006 (01/07) <br />THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY <br />SEXUAL ABUSE ENDORSEMENT <br />This endorsement modifies insurance provided under the following: <br />Commercial General Liability Coverage Part <br />SCHEDULE <br />Sexual Abuse Limits of Insurance <br />Sexual Abuse Each Occurrence Limit: $100,000 <br />Sexual Abuse Aggregate Limit $300,000 <br />A. Except as otherwise provided by this endorsement, this policy does not apply to "bodily injury," <br />"property damage" or "personal and advertising injury" caused by, based upon or arising, in whole or <br />in part, out of any: <br />1. Actual, threatened or alleged "sexual abuse" or "sexual harassment`, or <br />2. "Negligent employment' of any person who caused or commits or is alleged to have caused or <br />committed "sexual abuse" or "sexual harassment." <br />As respects coverage afforded by this endorsement, the following changes apply to the COMMERCIAL <br />GENERAL LIABILITY COVERAGE FORM: <br />B. Paragraph 1, of Section I — Coverages — Coverage A — Bodily Injury And Property Damage <br />Liability is deleted and replaced by the following: <br />1. Insuring Agreement <br />a. We will pay those sums that the insured becomes legally obligated to pay as damages <br />because of "bodily Injury" to which this insurance applies. We will have the right and duty to <br />defend the insured against any "suit' seeking those damages, including any "suit' alleging <br />that the "bodily injury' arose out of "sexual abuse" caused or committed by the insured. <br />However, we will have no duty to defend or continue to defend any insured against: <br />(1) any "suit' seeking damages for "bodily injury" to which this insurance does not apply; <br />(2) any "suit' for which the insured is found to have in fact caused or committed an act of <br />"sexual abuse"; or <br />(3) any "suit' for which the insured has admitted to have in fact caused or committed an act <br />of "sexual abuse." <br />We may, at our discretion, investigate any "occurrence" and settle any claim or "suit' that <br />may result. But: <br />(a) The amount we will pay for damages is limited as described in Section F — Limits Of <br />Insurance of this endorsement; and <br />(b) Our right and duty to defend ends when we have used up the applicable limit of <br />insurance in the payment of judgments, settlements or "defense expenses" under <br />Coverages A or B or medical expenses under Coverage C. <br />No other obligation or liability to pay sums or perform acts or services is covered unless <br />explicitly provided under Section D of this endorsement — Supplementary Payments — <br />Coverage A and B. <br />b. This insurance applies to "bodily injury" only if; <br />Page 1 of 4 <br />