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means an act of fraud or dishonesty committed by an "employee", except you, whether identified or not, acting alone or in collusion with other persons, that results in a loss to a Plan of funds or other property which is used or may be used to pay benefits under the Plan. "Covered Causes of Loss" does not include investment losses or any other loss resulting from a breach of fiduciary duty under ERISA or a prohibited transaction as defined by ERISA and for which coverage is not required by Section 412 of ERISA. (b) Welfare and Pension Plan ERISA Compliance In compliance with certain provisions of the ERISA: (i) For the purposes of this insurance, the Plans you establish and maintain for the benefit of your employees shall be Named Insureds under this Employee Dishonesty Coverage. (ii) "Employee" includes any natural person you employ and any owner, officer, trustee or director of your company who "handles" the funds or other property of the Plan (as defined in 29 C.F.R. 2580.412-6) including, but not limited to, the Plan Administrator. "Employee" does not include any third party (including but not limited to a broker, independent contractor, record keeper, payroll provider, trustee or other fiduciary) who provides services to you or to a Plan. (iii) If any Plan is insured jointly with any other entity under this insurance, you or the Plan Administrator must select a Limit of Insurance under this Employee Dishonesty Coverage Form that is sufficient to provide an amount of insurance for each Plan that is at least equal to that required if each Plan were separately insured. (iv) If the insured first named in the Declarations is an entity other than a Plan, any payment we make to that insured for loss sustained by any Plan must be Page 2 of 3 paid promptly into such plan for the use and benefit of the Plan(s) sustaining the loss. (v) If two or more Plans are insured under this insurance, any payment we make for loss either sustained by two or more plans, or of commingled funds or other property of two or more Plans that arises out of one occurrence, is to be shared by each Plan sustaining loss in the proportion that the amount of insurance required for each such Plan under ERISA provisions bears to the total of those amounts. (4) Theft Limitation Exception Limitation AA.c., of the Special Property Coverage Form does not apply to coverage provided by this endorsement. (5) Additional Exclusions (a) Employee Terminated Under Prior Insurance We will not pay for loss caused by any "employee" of yours, or predecessor in interest of yours, for whom similar prior insurance has been terminated and not reinstated since the last such termination. (b) Insurance Operations We will not pay for direct or indirect loss resulting from contractual or extra -contractual liability sustained by you in connection with the issuance of contracts or purported contracts of insurance, indemnity or suretyship. (c) Inventory Shortages We will not pay loss, or that part of any loss, the proof of which as to its existence or amount is dependent upon: (i) An inventory computation; or A profit and loss computation (d) Partners We will pay only for loss caused by any partner or member of a limited liability corporation that is in excess of the sum of: (i) Any amounts you owe that partner or member; and he value of that partner's or enN ete ew cF RAMwagzmentDMsian Jy/ \'x REVIEWED & APPROVED BY. - I .° --� Rt janagement Analpt