HOMEBUSINESS EXTENSION SECTION I - PROPERTY COVERAGES. Perils Excluded

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1 HOMEBUSINESS EXTENSION In consideration of the Insured Named on the Declaration Page of this policy (hereinafter called the Insured) having paid or agreed to pay to the Insurer the premium for this insurance, and subject to the terms and conditions hereof, the Insurer agrees to indemnify the Insured for any loss sustained in accordance with the provisions of this form. SECTION I - PROPERTY COVERAGES Coverage A - Business Contents Property Insured This policy insures, under Coverage A of Section I, all business contents while at the premises described o the Declaration Page. Limit of Liability The Insurer's liability in any one occurrence, shall not exceed whichever is the least of: 1. the actual cash value of the property at the time of loss or damage; 2. the cost to repair or replace the property at the time of loss or damage with property of like kind and quality; 3. the interest of the Insured in the property; 4. the amount of insurance specified on the Declaration Page in respect of the property lost or damaged. Provided, however, that where the insurance applies to the property of more than one person or interest, the Insurer's total liability for loss sustained by all such persons and interests shall be limited in the aggregate to the amount or amounts specified on the Declarations Page. Co-Insurance Clause This clause applies separately to each item for which a co-insurance percentage is specified on the Declarations Page and only where the total loss exceeds the lesser of 2% of the amount of insurance or $5,000. The Insured shall maintain insurance concurrent with Coverage A of Section I of this policy on the property insured to the extent of at least the amount produced by multiplying the actual cash value of the property by the co-insurance percentage specified on the Declarations Page, and failing so to do shall only be entitled to recover the portion of any loss that the amount of insurance in force at the time of loss bears to the amount of insurance required to be maintained by this clause. Deductible The Insurer is liable for the amount by which the loss or damage caused by any of the perils insured against exceeds the amount of the deductible specified on the Declaration Page on the personal policy in any one occurrence. The disappearing deductible feature also applies to this extension. Exclusions Property Excluded This policy does not insure, under Coverage A of Section I, loss of or damage to: 1. sewers, drains or watermains located beyond the outside bearing walls or foundations of the property insured, exterior glass or vitrolite and lettering or ornamentation thereon, but this exclusion does not apply to loss or damage caused directly by specified perils; 2. property at locations which to the knowledge of the Insured are vacant, unoccupied or shut-down for more than thirty (30) consecutive days; 3. electrical devices, appliances or wiring caused by artificially generated electrical currents, including arcing, but this exclusion does not apply to loss or damage from ensuing fire or explosion as described in "Definitions" pertaining to Section I, Coverage A, under "Specified Perils" point 2; 4. growing plants, lawns, trees, shrubs or flowers in the open except as provided in the Extensions of Coverage; 5. money, bullion, precious metals and alloys, securities, stamps, tickets, tokens, evidences of debt or title; 6. automobiles, watercraft, amphibious or air cushion vehicles, aircraft, spacecraft, trailers, including motors or other accessories attached to or mounted on such property; 7. property insured under the terms of any Marine insurance and property while waterborne except while on a regular ferry or railway transfer in connection with land transportation; 8. property on loan, on rental, or sold by the Insured under conditional sale, instalment payment, or other deferred payment plan, from the time of leaving the custody of the Insured, but this exclusion does not apply while such property is in the custody of a carrier for hire for the purpose of delivery at the risk of the Insured; 9. property illegally acquired, kept, stored or transported; property seized or confiscated for breach of any law or by order of any public authority; 10. a. any pressure vessel having normal internal working pressure greater than 103 kilopascals (15 pounds per square inch) above atmospheric pressure; b. any boiler, including the piping and equipment connected thereto, which contains steam or water under steam pressure (except tanks having an internal diameter of 610 millimetres (24 inches) or less used for the storage of hot water for domestic use); caused directly or indirectly by explosion, rupture, bursting, cracking, burning out or bulging of such property while connected ready for use, but this exclusion does not apply to: a. manually portable gas cylinders; b. explosion of coal, natural or manufactured gas; c. explosion of gas or unconsumed fuel within a furnace, or within the gas passages therefrom to the atmosphere. Perils Excluded This policy does not insure, under Coverage A of Section I, against loss or damage caused directly or indirectly: 1. by earthquake, but this exclusion does not apply to property in transit nor to ensuing loss or damage which results directly from fire, explosion, smoke or leakage from fire protective equipment, all as described in the "Definitions" pertaining to Section I, Coverage A, under "Specified Perils"; 2. by flood, including waves, tides, tidal waves, tsunamis, or the rising of, the breaking out or the overflow of, any body of water, whether natural or manmade, but this exclusion does not apply to property in transit nor to ensuing loss or damage which results directly from fire, explosion, smoke, leakage from fire protective equipment, all as described in the "Definitions" pertaining to Section I, Coverage A, under "Specified Perils", or leakage from a watermain; 3. by seepage, leakage or influx of water derived from natural sources through basement walls, doors, windows or other openings therein, foundations, basement floors, sidewalks, sidewalk lights, or by the backing up of sewers, sumps, septic tanks or drains, unless concurrently and directly caused by a peril not otherwise excluded hereof; 4. by the entrance of rain, sleet, or snow through doors, windows, skylights or other similar wall or roof openings unless through an aperture concurrently and directly caused by a peril not otherwise excluded hereof; 5. by centrifugal force, mechanical or electrical breakdown or derangement in or on the premises, unless fire ensues and then only for the loss or damage caused directly by such ensuing fire; 6. by dampness or dryness of atmosphere, changes of temperature, freezing (except with respect to insured water pipes) heating, shrinkage, evaporation, loss of weight, leakage of contents, exposure to light, change in colour, change in texture, change in finish, rust, corrosion, marring, scratching or crushing, but this exclusion does not apply to loss or damage caused directly by specified perils, rupture of pipes or breakage of apparatus not excluded under "Property Excluded", point 10 hereof, theft or attempt thereat or accident to transporting conveyance; 7. by smoke from agricultural smudging or industrial operations; 8. by delay, loss of market, or loss of use or occupancy; 9. by any dishonest or criminal act on the part of the Insured or any other party of interest, employees or agents of the Insured, or any person to whom the property may be entrusted (bailees for hire excepted), but this exclusion does not apply to physical damage, caused directly by employees of the Insured, which results from a peril not otherwise excluded hereof; 10. by war risks - see Common Exclusions; 11. by nuclear risks - see Common Exclusions; 12. to "Buildings" by: a. snowslide, landslide or other earth movement, except for ensuing loss or damage which results directly from fire, explosion, smoke or leakage from fire protective equipment, all as described in the "Definitions" pertaining to Section I, Coverage A, under "Specified Perils";

2 b. explosion (except with respect to explosion of coal, natural or manufactured gas), collapse, rupture, bursting, cracking, burning out or bulging of the following property owned, operated or controlled by the Insured, unless fire ensues and then only for the loss or damage caused directly by such ensuing fire: 1. the portions containing steam or water under steam pressure of all boilers generating steam, and piping or other equipment connected to said boilers and containing steam or water under steam pressure; 2. piping and apparatus or parts thereof normally containing steam or water under steam pressure from an external source and while under such pressure; 3. other vessels and apparatus and pipes connected therewith while under pressure, or while in use or in operation provided their maximum normal internal working pressure exceeds 103 kilopascals (15 pounds per square inch) above atmospheric pressure but this exclusion does not apply to loss or damage resulting from the explosion of manually portable gas cylinders or of tanks having an internal diameter of 610 millimetres (24 inches) or less used for the heating and storage of hot water for domestic use; 4. moving or rotating machinery of parts thereof; 5. any vessels and apparatus and pipes connected therewith while undergoing pressure tests but this exclusion does not apply to other property insured hereunder that has been damaged by such explosion; 6. gas turbines; and c. settling, expansion, contraction, moving, shifting or cracking unless concurrently and directly caused by a peril not otherwise excluded hereof; 13. proximately or remotely, arising in consequence of or contributed to by the enforcement of any by-law, regulation, ordinance or law regulating zoning or the demolition, repair or construction of buildings or structures, which by-law, regulation, ordinance or law makes it impossible to repair or reinstate the property as it was immediately prior to loss; Nor does Coverage A of Section I insure: 14. wear and tear, gradual deterioration, latent defect, inherent vice, or the cost of making good faulty or improper material, faulty or improper workmanship, faulty or improper design, provided, however, to the extent otherwise insured and not otherwise excluded in coverage A of Section I, resultant damage to the property insured is insured; 15. mysterious disappearance; 16. loss or damage sustained to the property insured while actually being worked upon and directly resulting therefrom or caused by any repairing, adjusting or servicing of the property insured, but this exclusion does not apply to loss or damage from an ensuing fire or explosion as described in the "Definitions" pertaining to Section I, Coverage A, under "Specified Perils" point 2; 17. disturbance or erasure of electronic recordings by electric or magnetic injury except by lightning. Pollution Excluded This policy does not insure, under Coverage A of Section I, against direct or indirect loss, damage, cost or expense: 1. arising out of the clean-up, removal, containment, treatment, detoxification, decontamination, stabilization, neutralization, or remediation resulting from any actual, alleged, potential or threatened spill, discharge, emission, dispersal, seepage, leakage, migration, release or escape of pollutants, but this exclusion does not apply to physical loss or damage to the property insured caused directly by specified peril, rupture of pipes or breakage of apparatus not excluded under "Property Excluded", point 10 hereof, theft or attempt thereat or accident to a transporting conveyance; 2. for any testing, monitoring, evaluating or assessing of an actual, alleged potential or threatened spill, discharge, emission, dispersal, seepage, leakage, migration, release or escape of pollutants; Extensions of Coverage The limits of liability specified for "Clean Up Expenses For On Premises Pollutants", "Growing Plants, Trees, Shrubs Or Flowers In The Open" and "Personal Effects" apply as additional amounts of insurance. The Co-Insurance Clause described under Section I, Coverage A, does not apply to the "Business Contents Temporarily Off Premises Or In Transit", "Consequential Loss Assumption On Stock", "Clean Up Expenses For On Premises Pollutants", "Growing Plants, Trees, Shrubs Or Flowers In The Open" and "Personal Effects" extensions set out below. Building Damage By Theft Coverage A of Section I insures, subject to all its terms and provisions damage (except by fire) to that part of the building described on the Declarations Page occupied by the Insured directly resulting from theft or any attempt thereat and from vandalism or malicious acts committed on the same occasion, provided the Insured is the owner of such building or is liable for such damage and the building is not otherwise insured hereunder. This extension of coverage shall be limited to a maximum recovery of $5,000, in respect of any one loss. Glass and lettering or ornamentation thereon is excluded from this extension. Business Contents Temporarily Off Premises Or In Transit Coverage A of Section I insures, subject to all its terms and provisions, for not more than $5,000, Business Contents while such contents are temporarily at any location in Canada or while in transit between points or places in Canada. Coverage under this extension, however, does not apply to property while at a location owned, leased or controlled in whole or in part by the Insured. Consequential Loss Assumption On Stock Coverage A of Section I insures, subject to all its terms and provisions, for not more than $5,000, against any consequential loss or damage to stock insured under Coverage A of Section I, caused by change in temperature or humidity resulting from damage by the perils insured against under Coverage A of Section I, to equipment used for refrigerating, cooling, humidifying, dehumidifying, air conditioning, heating, generating or converting power (including their connections and supply or transmission lines and pipes) only when situated on the premises of the Insured described on the Declaration Page. Clean Up Expenses For On Premises Pollutants Coverage A of Section I insures, subject to all its terms and provisions, for not more than $10,000 in the aggregate during each separate twelve (12) month period of this policy, expenses incurred in the clean up of pollutants at the premises and provided the discharge, dispersal release or escape of pollutants: 1. is occasioned by loss or damage caused directly by the perils insured under Coverage A of Section 1 to building(s), structure(s), machinery, equipment or stock at the premises; 2. originates at the premises; 3. is sudden, unexpected and unintended from the standpoint of the Insured; and 4. occurs during the policy period. Debris Removal The Insurer will indemnify the Insured for expenses incurred in the removal: 1. from the Insured's premises, of debris of the property insured occasioned by loss or damage to such property, for which loss or damage insurance is afforded under Coverage A of Section I. 2. of debris or other property which is not insured by Coverage A of Section I, but which has been blown upon the Insured's premises by windstorm. This extension, however, does not insure against direct or indirect loss, damage, cost or expense: 1. arising out of the clean-up, removal, containment, treatment, detoxification, decontamination, stabilization, neutralization, or remediation resulting from any actual, alleged, potential or threatened spill, discharge, emission, dispersal, seepage, leakage, migration, release, or escape of pollutants; 2. for any testing, monitoring, evaluating or assessing of an actual, alleged, potential, or threatened spill, discharge, emission, dispersal, seepage, leakage, migration, release, or escape of pollutants. Debris removal expense shall not be considered in the determination of actual cash value for the purpose of applying the Co-Insurance Clause. Earthquake Damage Extension Form (#P515) or (#P615) If the words "Earthquake Form" appear in the Declarations, and Coverage C - Personal Property is insured, the Earthquake Damage Extension Form is extended to the HomeBusiness Policy, Section I - Property Coverages. Growing Plants, Trees, Shrubs, Or Flowers In The Open Coverage A of Section I insures, subject to all its terms and provisions, for not more than $5,000, loss or damage to growing plants, trees, shrubs or flowers in the open caused directly by specified perils with the exception of windstorm or hail as described in the "Definitions" pertaining to Section I, Coverage A, under "Specified Perils" or from theft or attempt threat. This extension of coverage shall be limited to a maximum recovery of $500 for each growing plant, tree, shrub or flower in the open including debris removal expense.

3 Personal Effects Coverage A of Section I insures, subject to all its terms and provisions, for not more than $5,000, Personal Effects of officers and employees of the Insured. The Insurance on such property: 1. shall not attach if it is insured by the owner unless the Insured is obligated to insure it or is liable for its loss or damage; 2. is, in any event, limited to a maximum recovery of $500 in respect of any one officer or employee; Removal If any of the property insured is necessarily removed from the locations specified herein to prevent loss or damage thereto, that part of the insurance under Coverage A of Section I that exceeds the amount of the Insurer's liability for any loss already incurred shall, for ninety (90) days only, or for the unexpired term of the policy if less than ninety (90) days, insure the property removed and any property remaining in the location(s) specified herein in the proportions which the value of the property in each of the respective location(s) bears to the value of the property in them all. Sewer Back-Up Form If the words "Sewer Back-Up - Replacement Cost" appear in the Declarations, the Sewer Back-Up Form is extended to the HomeBusiness Policy, Section I - Property Coverages. Province of Quebec For residences located in the Province of Quebec, the maximum amount payable for the Personal Insurance and HomeBusiness Extension for Sewer Back-Up coverage is $20,000 unless otherwise indicated. Province of Saskatchewan For residences located in Regina and Saskatoon, in the Province of Saskatchewan, the "Basis of Claim Settlement" and "Deductible" for "Sewer Back-Up" is as indicated on the "Sewer Back-Up Endorsement - Saskatchewan" - Form No. PR1724. Definitions Wherever used in Coverage A of Section I including the General Conditions applicable to Coverage A: "Automobile" means any self-propelled land vehicle. "Business Contents" mean equipment and stock. "Declaration Page" means the Declaration Page, including any supplementary pages or schedule of coverages attached thereto, applicable to this policy. "Equipment" means: 1. generally all contents usual to the business of the Insured including furniture, furnishings, fittings, fixtures, machinery, tools, utensils and appliances other than Buildings or Stock as herein defined; 2. similar property belonging to others which the Insured is under obligation to keep insured or for which the Insured is legally liable; 3. outside communication towers, antennae (including satellite receivers) and equipment attached thereto, street clocks and exterior signs provided the building is not otherwise insured hereunder; 4. tenants' improvements which are defined as building improvements, alterations and betterments made at the expense of the Insured to a building occupied by the Insured and which are not otherwise insured, provided the Insured is not the owner of such building. If the Insured purchased the use interest in tenants' improvements made by a predecessor tenant, this policy applies as though such tenants' improvements had been made at the expense of the Insured. "Fire Protective Equipment" includes tanks, watermains, hydrants, valves and any other equipment whether used solely for fire protection or jointly for fire protection and for other purposes, but does not include: 1. branch piping from a joint system where such branches are used entirely for purposes other than fire protection; 2. any watermains or appurtenances located outside of the described premises and forming a part of the public water distribution system; 3. any pond or reservoir in which the water is impounded by a dam. "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including odour, vapour, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. "Premises" means the entire area within the property lines at locations described on the Declaration Page and areas under adjoining sidewalks and driveways. "Specified Perils" means: 1. Fire or lightning. 2. Explosion. Except with respect to explosion of coal, natural or manufactured gas, there shall in no event be any liability hereunder for loss or damage caused by explosion, rupture or bursting in or of the following property owned, operated or controlled by the Insured: a. 1. the portions containing steam or water under steam pressure of all boilers generating steam, and piping or other equipment connected to said boilers and containing steam or water under steam pressure; 2. piping and apparatus or parts thereof normally containing steam or water under steam pressure from an external source and while under such pressure; 3. the combustion chambers of fire boxes of steam generating boilers of the chemical recovery type and the flues or passages which conduct the gases of combustion therefrom; or 4. smelt dissolving tanks; and b. other vessels and apparatus, and pipes connected therewith, while under pressure, or while in use or in operation, provided their maximum normal internal working pressure exceeds 103 kilopascals (15 pounds per square inch) above atmospheric pressure except that liability is specifically assumed for loss or damage resulting from the explosion of manually portable gas cylinders; c. moving or rotating machinery or parts of same when such loss or damage is caused by centrifugal force or mechanical breakdown; d. any vessels and apparatus and pipes connected therewith while undergoing pressure tests, but this exclusion shall not apply to other property insured hereunder that has been damaged by such explosions; e. gas turbines. The following are not explosions within the intent or meaning of this section: a. electric arcing or any coincident rupture of electrical equipment due to such arcing; b. bursting or rupture caused by hydrostatic pressure or freezing; and c. bursting or rupture of any safety disc, rupture diaphragm or fusible plug. 5. Impact by aircraft, spacecraft or land vehicle. The terms "Aircraft" and "Spacecraft" include articles dropped therefrom. There shall in no event be any liability hereunder due to cumulative damage or for loss or damage: a. caused by land vehicles belonging to or under the control of the Insured or any of his employees; b. to aircraft, spacecraft or land vehicles causing the loss; or c. caused by any aircraft or spacecraft when being taxied or moved inside or outside of buildings. 4. Riot, vandalism or malicious acts. The term riot includes open assemblies of strikers inside or outside the premises who have quitted work and of locked-out employees. There shall in no event be any liability hereunder for loss or damage: a. due to cessation of work or by interruption to process or business operations or by change(s) in temperature; b. due to flood or release of water impounded by a dam, or due to any explosion other than an explosion in respect of which there is insurance as per the "Definitions" pertaining to Section I, Coverage A, under "Specified Perils" point 2; c. due to theft or attempted thereat. 5. Smoke. The term smoke means smoke due to a sudden, unusual and faulty operation of any stationary furnace. There shall in no event be any liability hereunder for any cumulative damage. 6. Leakage from fire protective equipment. The term Leakage from Fire Protective Equipment means the leakage or discharge of water or other substance from within the equipment used for fire protection purposes for the premises described on the Declaration Page or for adjoining premises and loss or damage caused by the fall or breakage or freezing of such equipment. 7. Windstorm or hail. There shall in no event be any liability hereunder for loss or damage:

4 a. to the interior of the buildings insured or their contents unless damage occurs concurrently with and results from an aperture caused by windstorm or hail; b. directly or indirectly caused by any of the following, whether driven by wind or due to windstorm or not, snow-load, ice-load, tidal wave, high water, overflow, flood, waterborne objects, waves, ice, land, subsidence, landslip. "Stock" means: 1. merchandise of every description; 2. packaging, wrapping and advertising materials; 3. similar property belonging to others which the Insured is under obligation to keep insured or for which the Insured is legally liable. Coverage B - Business Income Indemnity Agreement This policy insures, under Coverage B of Section I, the actual loss of business income suffered during the indemnity period as a result of damage in accordance with the terms and conditions of this policy. Perils Insured The perils insured against under Coverage B of Section I are those applicable to Building coverage, as defined and limited in Coverage A of Section I, subject to any further limitation set forth herein. Additional Exclusions The Insurer shall not be liable for: 1. any increase of loss directly or indirectly, proximately or remotely, resulting from, or contributed to by, the operation of any by-law, ordinance or law regulating zoning or the demolition, repair or construction of buildings or structures, unless the liability is otherwise specifically assumed by endorsement hereon. 2. loss due to the suspension, lapse or cancellation of any lease or license, contract or order, which may affect the Insured's income after the period following any loss during which indemnity is payable. 3. any other consequential or remote loss. Measure of Recovery The measure of recovery in the event of loss hereunder shall be determined as follows: 1. first, the amount by which the Insured's business income has been reduced will be established. This will include the reduction in any rents the Insured normally would have received. 2. second, the amount of those expenses that do not necessarily continue during the indemnity period will be subtracted from (1). Any of the Insured's ordinary business expenses will be considered necessary. If: a. such expenses would have been covered by the Insured's business income before the loss; and b. such expenses are required so that the Insured's business can return to operations with the same quality of service as before the loss; 3. finally, the amount of any extra expenses necessarily incurred by the Insured to continue or resume operations as nearly normal as possible will be added. Extensions of Coverage Leasehold Interest Coverage B of Section I insures, subject to all its terms and provisions, the extra lease expense resulting from direct physical loss of or damage to property at the premises described on the Declaration Page by a peril insured rendering the same premises unfit for occupation so that the Insured's lease is terminated under the terms of the lease agreement. Indemnity shall be based on the difference between the existing monthly rent on the insured premises and the rent required at the replacing location multiplied by the number of months remaining in the lease at the insured premises, such difference to be calculated on the basis that the replacing location is of similar size, condition and location without allowance for improvement. Interruption By Civil Authority Coverage B of Section I insures, subject to all its terms and provisions, loss of business income sustained by the Insured during the period of time, not exceeding two (2) weeks, while access to the premises described on the Declaration Page is prohibited by order of civil authority, but only when such order is given as a direct result of damage to neighbouring premises by a peril insured. Mitigation of Loss - Insured's Additional Obligations It is a condition of this insurance that: 1. the Insured must resume operations and stop all extra expenses as soon as possible and to whatever extent is possible, provided that the resumption of operations and stopping of any extra expenses does not result in an increase in the amount of the loss; 2. the Insured must also make use of other property at the premises or other locations, if it would reduce the business income loss. Definitions Wherever used in Coverage B of Section I including General Conditions applicable to Coverage B: "Business" means the business of the Insured as specified on the Declarations Page. "Damage" means the direct physical loss of or damage to property at the premises from a peril insured. "Declaration Page" means the Declaration Page, including any supplementary pages or schedule of coverages attached thereto, applicable to this policy. "Indemnity Period" means the period beginning with the occurrence of the damage and ending not later than the shortest of the following periods: 1. the time required to resume the normal business operations of the Insured; 2. the time that is reasonably necessary to repair, rebuild or replace the damage, plus, provided the Insured decides to resume operations, sixty (60) days; or 3. twelve (12) months. However, if media for, or programming records pertaining to, electronic data processing or electronically controlled equipment including data thereon be lost or damaged by a peril insured against then the indemnity period in respect thereof shall not extend beyond whichever is the later of: 4. thirty (30) consecutive days after the occurrence of such damage; or 5. the date upon which liability ceases under Coverage B of Section I for loss arising from other property lost or damaged by the same occurrence. "Normal" means the condition which would have existed had no loss occurred. "Premises" means the entire area within the property lines at the locations described on the Declarations Page and areas under adjoining sidewalks and driveways. Coverage C - Accounts Receivable Property Insurance This policy insures, under Coverage C of Section I 1. all sums due the Insured from customers, provided the Insured is unable to effect collection thereof as a direct result of loss of or damage to records of accounts receivable caused by or resulting from a peril insured; 2. interest charges on any loan to offset impaired collections pending repayment of such sums made uncollectible by such loss or damage; 3. collection expenses, in excess of normal collection costs and made necessary because of such loss or damage; 4. other expenses when reasonably incurred by the Insured in re-establishing records of accounts receivable following such loss or damage. Limit of Liability The Insurer shall not be liable for more than the amount of insurance shown for accounts receivable on the Declarations Page, in any one occurrence. Perils Insured This policy insures, under Coverage C of Section I, against all risks of direct physical loss of or damage to the Insured's records of accounts receivable, except as herein excluded. Exclusions This policy does not insured under Coverage C of Section I, against loss: 1. due to any fraudulent, dishonest or criminal act by any Insured, a partner therein, or an officer, director or trustee thereof, while working or otherwise and whether acting alone or in collusion with others; 2. due to bookkeeping, accounting or billing errors or omissions; 3. the proof of which, as to factual existence, is dependent upon an audit of records, or an inventory computation; but this shall not preclude the use of

5 such procedures in support of claim for loss which the Insured can prove through evidence wholly apart therefrom, is due solely to a risk of loss to records of accounts receivable not otherwise excluded hereunder; 4. due to alteration, falsification, manipulation, concealment, destruction or disposal of records of accounts receivable committed to conceal the wrongful giving, taking, obtaining or withholding of money, securities or other property but only to the extent of such wrongful giving, taking, obtaining, or withholding; 5. due to electrical or magnetic injury, disturbance or erasure of electronic recordings, except by lightning; 6. or damage caused directly or indirectly by war risks - see Common Exclusions; 7. or damage caused directly or indirectly by nuclear risks - see Common Exclusions. Adjustment of Loss In the event that the Insured cannot accurately establish the total amount of accounts receivable outstanding as of the date the loss occurs, such amount shall be based on the Insured's monthly statements and shall be computed as follows: 1. determine the amount of all outstanding accounts receivable at the end of the same fiscal month in the year immediately preceding the year in which the loss occurs. 2. calculate the percentage of increase or decrease in the average monthly total of accounts receivable for the twelve (12) months immediately preceding the month in which the loss occurs, or such part thereof for which the Insured has provided monthly statements to the Insurer as compared with such coverage for the same months of the preceding year. 3. the amount determined in paragraph (1), increased or decreased by the percentage calculated under paragraph (2), shall be the agreed total amounts of accounts receivable as of the last day of the fiscal month in which said loss occurs; 4. the amount determined in paragraph (3) shall be increased or decreased in conformity with normal fluctuations in the amount of accounts receivable during the fiscal month involved, due consideration being given to the experience of the business since the last day of the last fiscal month for which statement has been rendered. In determining the amount of the Insurer's liability for any loss hereunder there shall be deducted from the total amount of accounts receivable the amount of such accounts evidenced by records not lost or damaged, or otherwise established or collected by the Insured, and an amount to allow for probable bad debts which would normally have been uncollectible by the Insured. On deferred payment accounts receivable, unearned interest and service charges shall be deducted. Protection Records It is a condition of this insurance that the records of accounts receivable insured hereunder shall be contained in the interior of the premises described on the Declaration Page and kept in metal filing cabinets at all times when not in use. Recoveries After payment of loss all amounts recovered by the Insured on accounts receivable for which the Insured has been indemnified shall belong and be paid to the Insurer by the Insured up to the total amount of loss paid by the insurer; but all recoveries in excess of such amounts shall belong to the Insured. Removal This insurance also applies while the records of accounts receivable are being removed to and while at a place of safety because of imminent danger of loss or damage and while being returned from such place, provided the Insured gives written notice to the Insurer of such removal within ten (10) days thereafter. Definitions Wherever used in Coverage C of Section I including the General Conditions applicable to Coverage C: "Declaration Page" means the Declaration Page, including any supplementary pages or schedule of coverages attached thereto, applicable to this policy. "Premises" means the interior of that portion of the building(s) at the location(s) described on the Declaration Page which is occupied by the Insured. Coverage D - Valuable Papers and Records Property Insured This policy insures, under Coverage D of Section I, valuable papers and records owned by the Insured or held by the Insured in any capacity, provided the insurance applies only to the interest of the Insured in such property, including the Insured's liability to others, and does not apply to the interest of any other person or organization in any of said property unless included in the Insured's proof of loss. Limit of Liability The Insurer's liability in any one occurrence, shall not exceed whichever is the least of: 1. the actual cash value of the property at the time of loss or damage; 2. the cost to repair or replace the property at the time of loss or damage with property of like kind and quality; 3. the interest of the Insured in the property; 4. the amount of insurance specified on the Declaration Page in respect of the property lost or damaged. Provided, however, that where the insurance applies to the property of more than one person or interest, the Insurer's total liability for loss sustained by all such persons and interests shall be limited in the aggregate to the amount or amounts specified on the Declaration Page. Perils Insured This policy insures, under Coverage D of Section I, against all risks of direct physical loss of or damage t the property insured, except as herein excluded. Exclusions This policy does not insure, under Coverage D of Section I, against loss or damage: 1. due to any fraudulent, dishonest or criminal act by any Insured, or partner therein, or an officer, director or trustee thereof, while working or otherwise, whether acting alone or in collusion with others; 2. directly resulting from errors or omissions in processing or copying unless fire or explosion ensues and then only for direct loss caused by such ensuing fire or explosion; 3. due to electric or magnetic injury, disturbances or erasure of electronic recordings, except by lightning; 4. due to wear and tear, gradual deterioration, vermin or inherent vice; 5. to property which cannot be replaced with other of like kind and quality; 6. to property held as samples or for sale or delivery after sale; 7. to data processing media caused directly or indirectly by actual work upon such property unless fire or explosion ensues and then only for direct loss caused by such ensuing fire or explosion; 8. caused directly or indirectly by war risks - see Common Exclusions; 9. caused directly or indirectly by nuclear risks - see Common Exclusions. Off-Premises Extension This insurance also applies while the valuable papers and records are temporarily at any location in Canada or while in transit between points or places in Canada. Coverage under this extension, however, does not apply to property while at a location described on the Declaration Page or while in storage. The Insurer's maximum liability under this extension shall not exceed the lesser of 10% of the amount of insurance shown on the Declaration Page for valuable papers and records or $5,000. Protection of Valuable Papers and Records It is a condition of this insurance that the valuable papers and records insured hereunder shall be contained in the interior of the premises described on the Declaration Page and kept in metal filing cabinets at all times when not in use. Removal This insurance also applies while the valuable papers and records are being removed to and while at a place of safety because of imminent danger of loss or damage and while being returned from such a place, provided the Insured gives written notice to the Insurer of such removal within ten (10) days thereafter. Definitions Wherever used in Coverage D of Section I including the General Conditions applicable to Coverage D: "Data Processing Media" means active data processing media which consists of converted data and/or program and/or instruction vehicles used in the Insured's data processing operations. "Declaration Page" means the Declaration Page, including any supplementary pages or schedules of coverages attached thereto, applicable to this policy. "Money" means currency, coins, bank notes and bullion; and traveller's cheques, register cheques and money orders held for sale to the public.

6 "Premises" means the interior of that portion of the building(s) at the location(s) described on the Declaration Page which is occupied by the Insured. "Securities" means all negotiable and non-negotiable instruments or contracts representing either money or other property and includes revenue and other stamps in current use, tokens and tickets, but does not include money. "Valuable Papers and Records" means written, printed or otherwise inscribed documents and records, including data processing media, books, maps, films, drawings, abstracts, deeds, mortgages and manuscripts, but does not mean money or securities. Coverage E - Professional Fees This policy insures, under Coverage E of Section I, subject to all the terms and provisions of Section I, for not more than $5,000 the reasonable fees payable to the Insured's Auditors, Accountants, Lawyers, Architects, Engineers, or other consultants, except the Insured's own employees and Public Adjusters, for producing particulars of details of the Insured's loss or losses in order to arrive at the loss payable under Section I in the event of a claim. General Conditions The Conditions titled "Basis of Settlement - Replacement Cost' Special Basis of Settlement - Records' Special Basis of Settlement - Tenants Improvements; Valuations and Special Basis of Settlement - Valuable Papers; and Records" apply only to Coverage A of Section I. Basis of Settlement - Replacement Cost The Insurer agrees to amend the basis of settlement from actual cash value to replacement cost subject to the following provision: 1. replacement shall be effected by the Insured with due diligence and dispatch; 2. replacement shall e on the same site or an adjacent site. 3. settlement on a replacement cost basis shall be made only when replacement has been effected by the Insured and in no event shall it exceed the amount actually and necessarily expended for such replacement; 4. failing compliance by the Insured with any of the foregoing provisions, settlement shall be made as if this condition had not been in effect. 5. any other insurance effected by or on behalf of the Insured in respect of the perils insured against hereby on the property to which this condition is applicable shall be on the basis of replacement cost as defined herein; 6. this condition applies separately to each item to which it is applicable. Any reference to actual cash value in a co-insurance clause in this policy is deemed to be a reference to replacement cost of the property insured. In this condition: 1. replacement cost means the cost of replacing, repairing, constructing or reconstructing (whichever is the least) the property on the same site with new property of like kind and quality and for like occupancy without deduction for depreciation; 2. replacement includes repair, construction or re-construction with new property of like kind and quality. In the event that new property of like kind and quality is not obtainable, new property which is as similar as possible to that damaged or destroyed and which is capable of performing the same function shall be deemed to be new property of like kind and quality for the purposes of this condition. This condition does not apply to: 1. stock; 2. patterns, dies, moulds; 3. paintings, etchings, pictures, tapestries, statuary, marbles, bronzes, antique furniture, rare books, antique silver, porcelain, rate glassware, bric-a-brac or other articles of art, rarity or antiquity; 4. manuscripts and records meaning books of account, drawing, card index system and other records, media, data storage devices, and program devices for electro-mechanical data processing or for electronically controlled equipment; 5. any increase in the cost of replacement occasioned by a restriction or prohibition in any by-law, regulation, ordinance or law. Special Basis of Settlement - Records Notwithstanding anything contained in this policy to the contrary, the Insurer's liability for loss to: 1. books of account, drawings, card index systems and other records, other than as described in (2) below, shall not exceed the cost of blank books, blank pages or other materials, plus the cost of labour for actually transcribing or copying said records; 2. media, data storage devices and program devices for electronic and electromechanical data processing or for electronically controlled equipment shall not exceed the cost of reproducing such media, data storage devices and program devices from duplicates or from originals of the previous generation of the media, but no liability assumed hereunder for the cost of gathering or assembling information or data for such reproduction. Whichever of the above is applicable shall be the basis to be adopted for the purpose of applying Co-Insurance. Special Basis of Settlement - Tenants Improvements Notwithstanding anything contained in this policy to the contrary, with the exception of General Condition 1 above, the Insurer's liability for loss or damage to Tenant's Improvements shall be determined as follows: 1. if repaired or replaced with due diligence and dispatch, the amount actually and necessarily expended but in no event exceeding the actual cash value of the tenant's improvements immediately prior to the time of destruction or damage; 2. if not repaired or replaced with due diligence and dispatch after such loss, that portion of the original cost of the damaged or destroyed tenant's improvement which the unexpired term of the lease at the time of loss bears to the period(s) fro the date(s) such tenant's improvements were to the expiration date of the lease. Valuations For the purpose of calculating the total value of property for the application of co-insurance, value reporting, and for loss adjustment, the following valuation basis applies: 1. on unsold Stock - the actual cash value of the property at the time any loss occurs, but in no event to exceed what it would cost to repair or replace with material of like kind and quality; 2. on sold Stock - the selling price after allowance for discounts; 3. on property of others in the custody or control of the Insured for the purpose of performing work thereon - the amount for which the Insured is liable but in no event to exceed the actual cash value at the time and place of loss plus allowance for labour and materials expended to such time. 4. on tenant's improvements and records - as defined in the "Special Basis of Settlement - Records" and the "Special Basis of Settlement - Tenants Improvements" described above; 5. on all other property insured hereby and for which no more specific conditions have been set out - the actual cash value at the time the loss or damage occurs but in no event to exceed what it would then cost to repair or replace with material of like kind and quality. Special Basis of Settlement - Valuable Papers and Records This condition applies only to Coverage D of Section I. The Insurer's liability for loss or damage by a peril insured against under Coverage D of Section I for any valuable papers or records insured thereunder, which have been specifically scheduled, is the amount of insurance shown for such property, such amount being the agreed value thereof for the purposes of this insurance. The following conditions apply separately but similarly to all coverages of Section I. Breach of Condition Where a loss occurs and there has been a breach of condition relating to a matter before the happening of the loss, which breach would otherwise disentitle the Insured from recovery under this Form, the breach shall not disentitle the Insured from recovery if the Insured establishes that the loss was not caused or contributed to by the breach of condition or if the breach of condition occurred in any portion of the premises over which the Insured had no control. Common Exclusions Section I of this policy does not insure against loss or damage caused directly or indirectly by: 1. war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection or military power; 2. nuclear risks meaning: a. any nuclear incident (as defined in the Nuclear Liability Act or any other nuclear liability act, law or statute, or any law amendatory thereof) or nuclear explosion, except for ensuing loss or damage which results directly from fire, lightning or explosion of coal, natural or manufactured gas;

7 b. contamination by radioactive material; 3. the failure of any: a. electronic data processing equipment, or other equipment, including microchips embedded therein; b. computer programme; c. software; d. computer network; e. media; f. data; g. memory storage system; h. memory storage device; i. real time clock; j. date calculator; k. other related component, system, process, or device; l. other products and any services, data, or functions that directly or indirectly use or rely upon, in any manner, any of the items referred to in paragraph a) through k) above; to correctly read, recognize, process, distinguish, interpret or accept any encoded, abbreviated or encrypted date, time or combined date/time data or data field. Such failure shall include any error in original or modified data entry or programming. This exclusion does not apply to loss or damage caused directly by "Specified Perils". Locked Vehicle Warranty This warranty applies to property which is not under the control of a common carrier. Warranted by the Insured that any vehicle in which the property insured is carried, is equipped with a full enclosed metal body or compartment, and the Insurer shall be liable in case of loss by theft from an unattended vehicle only as a direct result of forcible entry (of which there shall be visible evidence) into such body or compartment the doors and windows of which shall have been securely locked. No Benefits to Bailee It is warranted by the Insured that this insurance shall in no wise enure directly or indirectly to the benefit of any carrier or other bailee. Notice to Authorities Where loss is due to malicious acts, theft, burglary, robbery, or attempt thereat, or is suspected to be so due, the Insured shall give immediate notice thereof to the police or other authorities having jurisdiction. Pair and Set In the case of loss of or damage to any article or articles, whether scheduled or unscheduled, which are a part of a set, the measure of loss of or damage to such article or articles shall be a reasonable and fair proportion of the total value of the set, but in no event shall such loss or damage be construed to mean total loss of set. Parts In the case of loss of or damage to any part of the insured property, whether scheduled or unscheduled, consisting when complete for use of several parts, the Insurer is not liable for more than the insured value of the part lost or damaged, including the cost of installation. Permission Permission is hereby granted: 1. for other insurance concurrent with this insurance; 2. to make additions, alterations or repairs; 3. to do such work and to keep and use such articles, materials and supplies in such quantities as are usual or necessary to the Insured's business. Property of Others At the option of the Insurer, any loss may be paid to the Insured or adjusted with and paid to the customer or the owner of the property. Property Protection Systems The Insured agrees to notify the Insurer forthwith of any interruption to, or flaw or defect, coming to the knowledge of the Insured: 1. in any sprinkler or other fire extinguishing system; 2. fire detection system; or 3. intrusion detection system; and shall also notify the Insurer forthwith of the cancellation or non-renewal of any contract which provides monitoring or maintenance services to any of these systems or of the notification of the suspension of police service in responses to any of these systems. Reinstatement Loss under any item of this insurance shall not reduce the applicable limit of insurance. Subrogation The Insurer, upon making any payment or assuming liability therefore under this form, shall be subrogated to all the rights of recovery of the Insured against others and may bring action to enforce such rights. Notwithstanding the foregoing, all rights of subrogation are hereby waived against any corporation, firm, individual, or other interest with respect to which insurance is provided by this policy. Where the net amount recovered after deducting the cost of recovery is not sufficient to provide a complete indemnity for the loss or damage suffered, that amount shall be divided between the Insurer and the Insured in the proportion in which the loss or damage has been borne by them respectively. Any release from liability entered into by the Insured prior to loss shall not affect the right of the Insured to recover. Sue and Labour It is the duty of the Insured in the event that any property insured hereunder is lost to take all reasonable steps in and about the recovery of such property. The Insurer shall contribute pro rata towards any reasonable and proper expenses in connection with the foregoing according to the respective interests of the parties. Verification of Values The Insurer or its duly appointed representative shall be permitted at all reasonable times during the term of this policy, or within a year after termination or expiration, to inspect the property insured hereunder. Such inspection or examination shall not waive nor in any manner affect any of the terms or conditions of this Form. Waiver of Term or Condition No term or condition of this form shall be deemed to be waived by this Insurer in whole or in part unless the waiver is clearly expressed in writing by a person authorized for that purpose by the Insurer. Neither the Insurer nor the Insured shall be deemed to have waived any term or condition of this form by any act relating to the appraisal of the amount of loss or to the delivery and completion of proofs, or the investigation or adjustment of any claim under this form SECTION II - CRIME COVERAGES Coverage A - Loss Inside The Premises This policy insures, under Coverage A of Section II, to an amount not exceeding in the aggregate the amount of insurance specified on the Declarations Page for Loss Inside the Premises: 1. loss of money and securities by the actual destruction, disappearance or wrongful abstraction thereof within the premises or within any banking premises or similar recognized places of safe deposit; 2. loss of other property caused by safe burglary or robbery within the premises, or attempt thereat and loss of a locked cash drawer, cash box or cash register by felonious entry into such container within the premises, or attempt thereat, or by felonious abstraction of such container from within the premises. 3. damage to the premises by safe burglary, robbery or felonious abstraction, or by or following burglarious entry into the premises or attempt thereat, provided with respect to damage to the premises the Insured is the owner thereof or is liable for such damage. Coverage B - Loss Outside The Premises This policy insures, under Coverage B of Section II, to an amount not exceeding in the aggregate the amount of insurance specified on the Declaration Page for Loss Outside the Premises: