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POLICY NUMBER: Z2FJ67523400 822-0001 08 19 Includes copyrighted material of the Insurance Services Office Inc., with its permission.Page 7 of 14 Copyright 2019 The Hanover Insurance Company. All Rights Reserved. repair, replacement, adjustment, removal or disposal of: (1)“Your product”; (2)“Your work”; or (3)“Impaired property”; if such product, work or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it, but this exclusion does not apply to “product recall expenses” that you incur for the “covered recall” of “your product” if the “covered recall” was initiated during the policy period. However, the exception to the exclusion does not apply to “product recall expenses” resulting from: (4)Failure of any products to accomplish their intended purpose; (5)Breach of warranties of fitness, quality, durability or performance; (6)Loss of customer approval, or any cost incurred to regain customer approval; (7)Redistribution or replacement of “your product” which has been recalled by like products or substitutes; (8)Caprice or whim of the insured; (9)A condition likely to cause loss of which any insured knew or had reason to know at the inception of this insurance; (10)Asbestos, including loss, damage or clean up resulting from asbestos or asbestos containing materials; or (11)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. 2.The following is added to SECTION II – WHO IS AN INSURED, paragraph 3.b.: “Product recall expense” arising out of any withdrawal or recall that occurred before you acquired or formed the organization. 3.The following is added to SECTION III – LIMITS OF INSURANCE: Product Recall Expense Limits of Insurance a.The Limits of Insurance shown in the SUMMARY OF COVERAGES of this endorsement and the rules stated below fix the most that we will pay under this Product Recall Expense coverage regardless of the number of: (1)Insureds; (2)“Covered Recalls” initiated; or (3)Number of “your products” withdrawn or recalled. b.The Product Recall Expense Aggregate Limit is the most we will reimburse you for the sum of all “product recall expenses” incurred for all “covered recalls” initiated during the policy period. c.The Product Recall Each Occurrence Limit is the most we will pay in connection with any one defect or deficiency. d.All “product recall expenses” in connection with substantially the same general harmful condition will be deemed to arise out of the same defect or deficiency and considered one “occurrence”. e.Any amount reimbursed for “product recall expenses” in connection with any one “occurrence” will reduce the amount of the Product Recall Expense Aggregate Limit available for reimbursement of “product recall expenses” in connection with any other defect or deficiency. f.If the Product Recall Expense Aggregate Limit has been reduced by reimbursement of “product recall expenses” to an amount that is less than the Product Recall Expense Each Occurrence Limit, the remaining Aggregate Limit is the most that will be available for reimbursement of “product recall expenses” in connection with any other defect or deficiency. g. Product Recall Deductible We will only pay for the amount of "product recall expenses" which are in excess of the $500 Product Recall Deductible. The Product Recall Deductible applies separately to each "covered recall". The limits of insurance will not be reduced by the amount of this deductible. We may, or will if required by law, pay all or any part of any deductible amount, if applicable. Upon notice of our payment of a deductible amount, you shall promptly reimburse us for the part of the deductible amount we paid. The Product Recall Expense Limits of Insurance apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that Insured Copy DocuSign Envelope ID: 127FE52A-CAEF-4879-B943-68F42EA8FF9D