PYRAMID GROUP INTERNATIONAL, INC. (5)

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Contractors Pollution Liability Policy 6. Coverage for fines or penalties - The Company will reimburse the named insured for the amount of any fine or penalty which is levied against any insured, and is paid by the insured during the policy period, by the Environmental Protection Agency, any state or local environmental regulatory agency, or any other governmental official or regulatory agency, or any court. The maximum total amount the Company will pay for reimbursement for all fines or penalties combined which are levied and paid during the policy period will be $50,000, regardless of the actual number of fines or penalties levied or paid, or the actual amount of any fine, and regardless of any other fact or circumstance. Reimbursement shall not be available whenever the applicable law provides that a particular fine or penalty is uninsurable as a matter of law. For Supplementary Coverages numbers 7., 8., 9., and 10., below, it is agreed that any and all payments made for any of these shall be included within, and shall not be in addition to, the applicable limit of liability. 7. Automatic coverage for newly formed or acquired entities - The coverage provided under this Policy shall apply on behalf of any entity which is newly formed or newly acquired by the named insured subsequent to the inception date of the policy period. Coverage shall be provided only to those newly formed or newly acquired entities for which, as of the date of formation or acquisition, the named insured directly owns fifty percent (50%) or more of the outstanding stock or other equity or ownership interest. It is agreed that there shall only be coverage for those claims that arise from pollution conditions which arise subsequent to the date of formation or acquisition. The named insured agrees to advise the Company of any newly formed or acquired entity within ninety (90) days of the date of formation or acquisition. The named insured agrees to accept any coverage terms or reasonable additional premium which the Company may require, relative to the newly formed or acquired entity. 8. Coverage for indemnification of clients- Whenever any written contract or written job specifications provide that the named insured shall indemnify the client for, or hold the client harmless or free from, any damages or claims expense which are due to a pollution condition which arises out of the named insured's operations, the Company will pay on behalf of the named insured those damages or claims expense that must be paid to indemnify the client. 9. Vicarious liability coverage - The coverage provided under this Policy shall apply on behalf of all insureds for pollution conditions arising out of operations performed by any entity or individual for whom any insured is legally liable, as long as the operations were performed on or after the effective date shown on the Policy Declarations Page or on an endorsement to the Policy, but prior to the end of the policy period. 10. Response costs coverage - In accordance with, and in support of, the duties of the named insured to mitigate damages, as described in Section VI., Conditions, Paragraph G., Mitigation, the Company will reimburse the named insured for all costs expended by the named insured in fulfilling the named insured's duties of mitigation, subject to the following limitations: xnkMougatmtixieian a. The only costs that will be reimbursed by the Company are those Rm" &A"Ra''®� expended by the named insured in efforts to abate, stop, prevent i� 1gemenA""�' Risk Management Spedadst © Freberg Environmental Inc, 2000 All rights reserved.