REDFLEX TRAFFIC SYSTEMS INC. - 2010

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1. "Bodily injury," "property damage" or "personal and advertising injury" arising out of operations performed for the state, municipality or political subdivision; or 2. Any "bodily injury" or "property damage" included within the "products- completed operations hazard ", except when required by written contract or agreement initiated prior to loss; or 3. "Bodily injury," "property damage" or "personal and advertising injury," unless negligently caused, in whole or in part, by you or those acting on your behalf, Item 15. - ADDITIONAL INSURED AND WAIVER OF SUBROGATION — LESSOR OF LEASED EQUIPMENT A. Section II - Who Is An Insured is amended to include as an additional insured any person or organization from whom you lease equipment when you and such person or organization have agreed in a written agreement that such person or organization be added as an additional insured on your policy. Such person or organization is an insured only with respect to liability for "bodily injury ", "property damage" or "personal and advertising injury" caused, in whole or in part, by your maintenance, operation or use of equipment leased to you by such person or organization. There is no coverage for the additional insured for "bodily injury ", "property damage" or "personal and advertising injury" arising out of the sole negligence of the additional insured or by those acting on behalf of the additional insured. A person's or organization's status as an additional insured under this endorsement ends when the agreement with you for such leased equipment ends. B. Waiver of Subrogation For any additional insured that obtains insured status on this policy through paragraph A., above, we waive any right of recovery we may have against the additional insured because of payments we make for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your maintenance, operation or use of equipment leased to you by such person or organization. C. Other Insurance This insurance shall be excess over any other insurance available to the additional insured, whether such insurance is on an excess, contingent or primary basis, unless you are obligated under a written agreement to provide liability insurance for that additional insured on any other basis. In that event, this policy will apply solely on the basis required by such written agreement. To the extent that the additional insured has the right to pursue any other insurance carrier for coverage, including a defense, we shall share that right with the additional insured. Item 16. - KNOWLEDGE OF OCCURRENCE Subparagraph 2.a., b. and c. of Condition 2. Section IV — Commercial General Liability Conditions are amended to add the following. As used in this paragraph, the word "you" refers to an "executive officer ", partner, member or legal representative, and any other "employee" with insurance or risk management responsibilities. Item 17. - UNINTENTIONAL ERRORS AND OMISSIONS Paragraph 6. of Section IV — Commercial General Liability Conditions is amended to add the following: Any unintentional error or omission in the description of, or failure to completely describe, any premises or operations intended to be covered by this policy will not invalidate or affect coverage for those premises or operations. However, you must report such error or omission to us as soon as practicable after its discovery. This provision does not affect our right to collect additional premium or exercise our right of cancellation or non - renewal. APPROVED AS TO FORM TERESA L. JU D LG 32 34 09 07 Assistant CftyAttorney page 7 of 8