TRANSPORTATION STUDIES, INC. 7 - 2015

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(8) Recall of "your products" that have no known or suspected defect solely because a known or suspected defect in another of "your products" has been found. It. Under SECTION 11 - LIABILITY, C. Who Is An Insured, paragraph 4.c. is added as follows: c. "Bodily Injury" or "property damage" do not apply to "product recall expense" arising out of any withdrawal or recall that occurred before you acquired or formed the organization. c. Under SECTION II - LIABILITY, E. Liability and Medical Expense General Conditions, 2. Duties in the Event of Occurrence, Offense, Claim or Suit" paragraph e, is added as follows: e. You must see to it that the following are done in the event of an actual or anticipated "covered recall" that may result in "product recall expense ": (1) Give us prompt notice of any discovery or notification that "your product" must be withdrawn or recalled. Include a description of "your product" and the reason for the withdrawal or recall; (2) Cease any further release, shipment, consignment or any other method of distribution of like or similar products until it has been determined that all such products are free from defects that could be a cause of loss under this insurance. d. Under SECTION If LIABILITY, F. Liability and Medical Expenses Definitions, the following additional definitions are added: "Covered recall" means a recall made necessary because you or a government body has determined that a known or suspected defect, deficiency, inadequacy, or dangerous condition in "your product" has resulted or will result in "bodily injury" or "property damage ". "Product recallexpense(s)" means: a. Necessary and reasonable expenses for: (1) cornmunicatlons, including radio or television announcements or Hanover Insurance Group_ 083A117248 1001384 printed advertisements including stationary, envelopes and postage; (2) Shipping the recalled products from any purchaser, distributor or user to the place or places designated by you; (3) Remuneration paid to your regular °employees" for necessary overtime; (4) Hiring additional persons, other than your regular "employees"; (5) Expenses incurred by employees" including transportation and accommodations; (6) Expenses to rent additional warehouse or storage space; (7) Disposal of "your product ", but only to the extent that specific methods of destruction other than those employed for trash discarding or disposal are required to avoid "bodily injury" or "property damage" as a result of such disposal, you incur exclusively for the purpose of recalling "your product", and b. Four lost profit resulting from such "covered recall ". e. Under SECTION It - LIABILITY, D. Liability and Medical Expenses Limits of insurance, the following Is added: S. The Limits of Insurance and rules stated below fix the most that we will pay under this Product Recall Expense Coverage. (1) The Aggregate Limit is the most that we will reimburse you for the sum of all "product recall expenses" incurred for all "product recall expenses" initiated during the policy period. (2) The Occurrence Limit shown on the Summary of Coverages is the most we will pay in connection with any one defect or deficiency. (a) All "product recall expenses" in connection with substantially the same general harmful condition will be deemed to arise out of the saute defect or deficiency and considered one "occurrence". f1, f/ ��i� 391 -1006 06 09 Includes copyrighted material of Insurance Services Office, Inc. Page 4 of 5 g-- (-- 00