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PI-FW-006 (01/07) (a) The amount we will pay for damages is limited as described in Section F — Limits Of Insurance of this endorsement and (b) Our right and duty to defend ends when we have used up the applicable limit of insurance in the payment of judgments, settlements or "defense expenses" under Coverages A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided under Section D of this endorsernent — Supplementary Payments — Coverage A and B. b. This insurance applies to "bodily injury" only if: (1) the "bodily injury" is caused by an "occurrence" that first commences in the "coverage territory"' at a specific date and time on or after the effective date of this endorsement and during the policy period; (2) the "bodily injury" arises Out Of "sexual abuse" caused or committed by your "employee"; and (3) the "sexual abuse" arises out of your "negligent employment" of that "employee." C. The insurance provided by this endorsement is subject to the following additional exclusions: 2. Exclusions This insurance does not apply to: a. Any person who: (1) Has admitted to or been found guilty of, or pled guilty or nolo contendere to any act involving "sexual abuse"; (2) Participated in, directed or knowingly allowed "sexual abuse"; or (3) Has failed to comply with any applicable law, ordfiiance or regulation which requires the reporting of "sexual abuse" after having knowledge of the "sexual abuse." b. Any expense associated with a criminal trial, proceeding or investigation, or to any expense for appeals for any "suit" against you or any person insured, c. Any claim for damages arising out of "sexual abuse" which is part of a series of related acts of "sexual abuse" if the first of such series of acts took place before the effective date of this endorsement. d. Any claim for damages arising out of "sexual abuse" alleged to have been caused or committed by any "employee" who had previously committed such an act of which any insured had knowledge. e. Any liability of others assumed by you under any contract or agreement, either oral or written. f. Any claim made against an insured by another insured. g. Any "sexual abuse" caused or committed by or which is alleged to have been caused or committed by any independent contractor or employee or agent of such independent contractor. h, "Sexual harassment," i. "Bodily injury" arising from any violation or alleged violation of the civil rights of any pe0* Q) Page 2 of 4