Free Motion for Partial Summary Judgment - District Court of Colorado - Colorado

Case 1:04-cv-00725-RPM

Document 41-3

Filed 07/01/2005

Page 1 of 35

INSURANCE ROYAL
EXECUTIVE OFFICE OFFICES 9300

ARROWPOINT CHARLOTTE NC

BLVD 28217

DIRECTOR DIRECTORS COMPANY

AND

OFFICER OFFICERS

LIABILITY

AND

REIMBURSEMENT

COVERAGE

NOTICE

THI THIS IS CLAIM CLAIMS MADE INDEMNITY POLICY WHICH APPLIES APPLIE ONLY TO CLAIMS FIRST MADE AND REPORTED TO CLAIM ROYAL DURING THE POLICY PERIOD AGAINST THE INSURED

PERSON PERSONS

FOR

WRONGFUL

ACT

NOTICE

THE FOR FOR THE

LIMIT

OF LIABILITY IS DEPLETED DEFENSE FEES AND EXPENSES FEE

DEFENSE EXPENSES EXPENSE RETENTION AMOUNT

SHALL

INCURRED AMOUNTS AMOUNT INCURRED BE APPLIED FIRST AGAINST

BY AMOUNTS AMOUNT

NOTICE

INSURER INSURED

HAS NO DUTY TO PROVIDE PERSON OR THE INSURED

DEFENSE FOR ANY ORGANIZATION

PLEASE

READ

CAREFULLY

CLAIM NOTICE
PLEASENOTIFY ROYAL PECIALTY S
OFALTCLAIMS

UNDERWRITJNG INC

ROYAL PECIALTY S UNDERWRITING INC
945 EAST PACESFERRY OAD PACE R SUITE 1890

ATLANTA 30326 GA
RSUIFPRI0000

ED

493

ATTENTIONCLAIMS DEPARTMENT CLAIM

QWEST0000

Case 1:04-cv-00725-RPM
IN

Document 41-3

Filed 07/01/2005

Page 2 of 35

OF TRIE PAYMENT OF PREMIUM AND IN RELIANCE UPON ALL STATEMENTS STATEMENT MADE AND INFORMATION FURNISHED TO THE ROYAL INDEMNITY COMPANY STOCK INSURANCE COMPANY HEREINAFTER CALLED THE INSURER INCLUDINGTHE STATEMENTS STATEMENT MADE IN THE APPLICATION ATTACHED HERETO AND MADE PARTHEREOF AND SUBJECTTOTHE TERMS CONDITIONS DEFINITIONS EXCLUSIONS AND TERM CONDITION DEFINITION EXCLUSION LIMITATION LIMITATIONS HEREINAFTER PROVIDED THE INSURER AGREES AGREE

CONSIDERATION

SECTION

1

INSURING

CLAUSE

INSURED

PERSON
OR

MEAN MEANS

WITH THE INSURED PERSONS OFTHE INSURED PERSON
IF

ORGANIZATIONTHAT
CLAIM CLAIMS
ARE

DIRECTOR

OFFICER AND

IN

ANY PAST PRESENT OR FUTURE THE EVENT OF THE DEATH

THE PERIOD DURING POLICY

ANY CLAIM PERSON PERSONS CONDITION

OR

FIRST

MADE

AGAINST THE INSURED

AND REPORTED IN OF THIS THI

OR OF INCAPACITY BANKRUPTCY AN INSURED PERSON THE ESTATE HEIR HEIRS LEGAL REPRESENTATIVEOR ASSIGN REPRESENTATIVES ASSIGNSOF SUCH INDIVIDUAL

ACCORDANCE WITH SECTION 4
OR FOR JOINTLY SEVERALLY

POLICY

LOS LOSS

MEAN MEANS

ANY AMOUNT

FOR SETTLEMENT DAMAGESOR DAMAGE

WRONGFUL ACT

THE INSURER WILL

PERSON LOS PAY ON BEHALF OF SUCH INSURED PERSONS ALLLOSS WHICH SUCH INSURED PERSONS SHALL BECOME PERSON LEGALLY OBLIGATED
TO PAY

WITH THE INSURED

THAT ORGANIZATION
OR

IF

THE POLICY DURING

PERIOD ANY
4 CONDITION

CLAIM

CLAIM CLAIMS

ARE

FIRSTMADE

AGAINSTTHE

INSURED PERSONS AND PERSON

IN REPORTEDACCORDANCE WITH SECTION OF THIS POLICY THI FOR OR JOINTLY SEVERALLY

WRONGFUL THE INSURERWILLPAY ON BEHALF OFTHE INSURED ACT ALLLOSS ORGANIZATION LOS FORWHICH THE INSURED ORGANIZATION IS REQUIRED PERMITTED INDEMNIFY OR TO THE INSURED PERSONS PERSON
TO PURSUANT LAW COMMON
OR OR STATUTORY THE CHARTER OR

D EXCES JUDGMENT INCLUDINGEFENSE EXPENSESIN EXCESS OFTHE EXPENSE RETENTION AND NOT EXCEEDINGTHE LIMIT OF APPLICABLE DECLARATION AS LIABILITY LISTED ON THE DECLARATIONS PAGE WHICH AN RESULT OF INSURED PERSON IS LEGALLY TO OBLIGATED PAY AS CLAIM LOS DOE LOSS DOES NOT INCLUDE SANCTIONS PUNITIVE SANCTION OR OF EXEMPLARYDAMAGES THE MULTIPLIEDPORTION ANY DAMAGE MATTER MULTIPLIED DAMAGEAWARD MATTERS WHICH ARE UNINSURABLE UNDER THE LAW PURSUANT TO WHICH THIS POLICY THI SHALL BE CONSTRUED FINES TAXES OR PENALTIES FINE TAXE

TO THE
OR

POLICYPERIOD MEANS MEAN DATE EXPIRATION

BYLAW OFTHE BYLAWS INDEMNIFY
SECTION 2

INSURED

ORGANIZATION EFFECTIVEUNDER DULY
AND DEFINES SUCH RIGHTS DEFINE RIGHT TO

SUCH LAWS WHICH DETERMINES LAW DETERMINE

TO ANY EARLIER EXTENSION OF COVERAGE UNDER SECTION 4 CONDITION WILL PERIOD BE PART OF AND NOT IN ADDITION TO THE POLICY

FROM THE INCEPTION DATE PERIOD OF THE DECLARATIONS PAGE DECLARATION CANCELLATION OR TERMINATION DATE ANY THE IN ITEM

SUBSIDIARY DEFINITION DEFINITIONS
MEAN MEANS

MEAN MEANS MORE

OWN OWNS ORGANIZATION

OF CORPORATION WHICH THE INSURED THAN FIFTY OF THE PERCENT50

VOTING STOCK WRONGFUL ACT MEAN MEANS ANY ACTUAL OR ALLEGED ERROR OMISSION MISSTATEMENT MISLEADING STATEMENT NEGLECT
OR

ATTACHED TO AND APPLICATION THI MATERIAL FORMING PART OF THIS POLICY INCLUDING ANY MATERIALS SUBMITTED AS PARTOFTHE APPLICATION PROCES PROCESS WHICH ARE

APPLICATION

THE

ON

FILE WITH THE INSURER AND WHICH FORM PART THE POLICY OF ATTACHED PHYSICALLY
MEAN MEANS OR

BREACH OF DUTY

BY AN

INSURED PERSON

IN SOLELY

THEIR

WHETHER CLAIM

NOT

CAPACITY AS AN INSURED PERSON ACTING ON BEHALF OF THE INSURED ORGANIZATION SECTION 3 EXCWSION EXCWSIONS

FOR MONEY OR THAT ANY PERSON OR ENTITYINTEND INTENDS TO HOLD ANY INSURED PERSON RESPONSIBLE FOR WRONGFUL ACT
OR

WRITTEN

ORAL DEMAND

SERVICE SERVICES RECEIVED BY AN

INSURED PERSON

DEFENSE

MEAN REASONABLE LEGAL FEE FEES AND EXPENSE EXPENSES MEANS WITH THE WRITTEN CONSENT OF THE EXPENSES INCURRED EXPENSE INSURED PERSON IN DEFENSE OF CLAIM IN INSURERBY AN CLUDINGPPEAL EXCEPTTHAT DEFENSE EXPENSES SHALL NOT A EXPENSE INCLUDE REMUNERATIONOVERHEAD OR BENEFIT EXPENSES EXPENSE

LOS IS EXCEPT FOR LOSS FOR WHICH THE INSURED ORGANIZATION TO INDEMNIFY THE INSURED PERSONS OR FORWHICH REQUIRED PERSON THE INSURED ORGANIZATIONAS TO THE EXTENT PERMITTED H BY LAW INDEMNIFIED THE INSURED PERSONS THE INSURERSHALL PERSON
NOT BE LIABLE TO MAKE

WITH ANY CLAIM BASED

LOS ANY PAYMENT FORLOSS IN CONNECTION MADE AGAINST THE INSURED PERSONS PERSON

ASSOCIATED WITH ANY INSURED

AND PERSON

INCURRED IN DEFENSE OF ANY CLAIM WHICH ANY OTHER INSURER HAS TO DUTY DEFEND REGARDLESS REGARDLES OF WHETHER
OR

AMOUNT ANY AMOUNTS INCLUDINGAPPEAL FOR

UPON OR ATTRIBUTABLE TO ANY INSURED PERSON OR GAININGIN FACT OF ANY PERSONAL PROFIT ADVANTAGE TO WHICH SUCH INSURED PERSON WAS NOT LEGALLY ENTITLED FORRETURN BY THE INSURED PERSONS OF ANY REMUNERATION PERSON

NOT SUCH OTHER INSURER UNDERTAKES SUCH UNDERTAKE
OR

DUTY AND ANY OBLIGATION TO APPLY FOR PROCURE PROVIDESECURITYFOR ANY APPELLATEOR SIMILAR BOND
INSURED
IN ITEM TO PRIOR
ON

PAID

TO THE INSURED

PERSON PERSONS WITHOUT THE PREVIOUS PREVIOU OF THE INSURED

APPROVAL OF THE APPROVALSHALL BE OF LAW
BASED UPON

BODIE BODIES GOVERNING
HELD

ORGANIZATION MEANS MEAN
OF THE DECLARATIONS AND DECLARATION
OR

THE ORGANIZATION NAMED

ORGANIZATION WHICH PAYMENT WITHOUT SUCH PREVIOUS PREVIOU
COURT BY THE COURTS TO BE
IN VIOLATION

ANY SUBSIDIARYEXISTING AT THE INCEPTION DATE OF THIS POLICY THI ANDIISTED INSURED ENDORSEMENT ATTACHED TO THIS THI

THE

NAMED

ARISING OUT OF OR ATTRIBUTABLE
OR

TO

PROFIT PROFITS

POLICY IN ADDITION INSURED ORGANIZATION SHALLMEAN ANY SUBSIDIARY CREATED OR ACQUIREDAFTER THE INCEPTION DATE OF THE POLICYSUBJECT TO SECTION 4 CONDITION MERGER
CONSOLIDATION
OR

IN FACT MADE FROM THE PURCHASE AND SALE

SALE AND

ACQUISITION

SECURITIE PURCHASEBY THE INSURED PERSONS OF SECURITIES OF THE PERSON INSURED ORGANIZATIONWITHIN THE MEANING OF SECTION SECURITIE AND 16B OF THE SECURITIES EXCHANGE ACT OF 1934

QWEST00002

AMENDMENT AMENDMENTS STATE

Case 1:04-cv-00725-RPM Document 41-3 THERETOOR SIMILAR PROVISIONSOF PROVISION ANY
STATUTORY LAW
OR OR

Filed 07/01/2005

COMMON

LAW

BROUGHTBOUT A

OFTHE INSURED PERSONS HOWEVER

CONTRIBUTED BY THE TO

INSURED PERSONSSHALT BE PROTECTED PERSON UNDER THE TERM OF THIS TERMS THI POLICY TO AS ANY CLAIMS UPON CLAIM WHICH SUIT MAY BE BROUGHT AGAINSTTHEM BY REASON
OF ANY

FOREGOING THE

DISHONESTY THE NOTWITHSTANDING

DERIVATIVEACTIONS BROUGHTY ACTION B SHAREHOLDERF THE INSUREDORGANIZATJO O OTHER THAN AN INSURED PERSON

FOR STOCKHOLDERS STOCKHOLDER

Page 3 of 35

BROUGHT AN OFFICER WHO IS NOT BY DIRECTOR THEIR ALLEGED FOR WRONGFUL TERMINATION
BASED UPON
IN OR

CLAIM

THEREOFDVERSE THE INSURED A TO PERSON SHALLESTABLISH PERSONS THAT ACTS OF ACTIVE AND ACT DELIBERATE

ALLEGED DISHONESTYTHE PARTOF THE INSURED ON PERSON UNLESS JUDGMENTR OTHERFINAL PERSONS UNLES O ADJUDICATION

ANY WAY

INVOLVING

ATTRIBUTABLE O OR ARISING T OUT OF

OR

PAYMENT PAYMENTSCORN MISSIONSGRATUITIES MISSION GRATUITIE BENEFITSOR BENEFIT
ANY OTHER FAVORS FAVOR TO
OR OR OR FOR THE BENEFIT OF ANY FULL PARTTIME DOMESTIC OR FOREIGN GOVERNMENTJ ARMED SERVICES OFFICIALS SERVICE OFFICIALAGENTS AGENT

MITTED BYTHE INSUREDPERSONSWITH PERSON ACTUAL DISHONEST PURPOSE AND INTENTWERE MATERIAL TO THE
ACTION
CAUSE

DISHONESTY CORN

OF

SO

ADJUDICATED

TIVE EMPLOYEE OR TIVESEMPLOYEES
OR

NOTE

WRONGFUL OF ANY INSURED PERSON SHALT ACT NOT BE IMPUTED TO ANY OTHER INSURED PERSON
FOR THE PURPOSE OF

THE

REPRESENTA MEMBER ANY MEMBERS OFTHEIR FAMILY WITH WHICH THEYARE ANY ENTITY

AFFIIIATD

OR

EXCLUSION ENUMERATED IN SECTION3 EXCLUSIONS EXCLUSION EXCLUSIONS A

DETERMINING APPLICABILITY THE THE OF

PAYMENT COMMISSION GRATUITIEBENEFITS PAYMENTS COMMISSIONSGRATUITIES BENEFIT OR ANY OTHER FAVORS OR FOR THE BENEFIT OF FAVOR TO
OR

PARTTIME OFFICIALS OFFICIALDIRECTORS DIRECTOR AGENT AGENTS

ANY FULL

THE INSURE SHALL NOT BE LIABLETO MAKE ANY PAYMENT FOR LOS LOSS IN CONNECTION WITH
ANY CLAIM MADE

OWNER OWNERS

INSURED PERSONS PERSON
FOR ANY ACTUAL
OR

AGAINST THE

IS DEFINED IN THE SECURITIE SECURITIES EXCHANGE OF ACT

REPRESENTATIVE PRINCIPALSHAEHOLDERS REPRESENTATIVES SHAEHOLDER OR OR EMPLOYEES EMPLOYEE OR AFFILIATES THATTERM AFFILIATE AS 1934 INCLUDING ANY
OF THEIR

PARTNER PARTNERS

DISEASE OR DEATH OF ANY PERSON ASSAULT BATTERY MENTAL ANGUISH OR EMOTIONAL DISTRESOR DISTRESS DAMAGE TO OR DESTRUCTION OF ANY TANGIBLE PROPERTY INCLUDING TOS TOSSOF USE THEREOF OR INVASIONOF PRIVACY RONGFUL W ENTRY EVICTION FALSE ARRESTFALSE
MALICIOU PROSECUTION MALICIOUS PROSECUTIONS

ALLEGED BODILY INJURY SICKNES SICKNESS

THEY ARE AFFILIATED OR FOREIGN
BASED UPON
ON OR

ANY CUSTOMER CUSTOMERS OF THE INSURED ORGANIZATION ANY OR MEMBER MEMBERS OF THEIR FAMILY OR ANY WITH WHICH ENTITY

AGENT OWNER AGENTS OWNERS PARTNERS PARTNER REPRESENTATIVES REPRESENTATIVE PRINCIPAL HAREHOLDERSOR SHAREHOLDER S EMPLOYEE EMPLOYEES OF

OFFICERDIRECTORS OFFICERS DIRECTOR

IMPRISONMENT OR

POLITICAL CONTRIBUTION CONTRIBUTIONS WHETHER

DOMESTIC

OR

FOR LIBELSLANDEROR DEFAMATION IN ANY FORM

ALLEGEDIOLATIONS THE EMPLOYEE VIOLATION OF V RETIREMENT INCOME SECURITY OF ACT 1974 OR ANY REGULATION REGULATIONS PROMULGATED THEREUNDEROF ANY SIMILAR OR PROVISION PROVISIONS OF ANY FEDERALSTATE OR LOCAL REGULATION
LAW
OR

FORANY ACTUAL OR

MAINTAIN ADEQUATE INSURANCE BASED UPON
OR

ATTRIBUTABLE ANY FAILURER OMISSION TO O THE PART OF THE INSURED PERSON TO EFFECTAND

ATTRIBUTABLETO THE ESSENTIAL FACT

OR

ALLEGING ARISING OF BASED UPOFL ATTRIBUTABLE OUT TO IN ANY WAY INVOLVINGIRECTLY INDIRECTLY D OR
ALLEGED THREATENED DISCHARGE OR DISPERSAL RELEASEOR ESCAPE OF POLLUTANTS POLLUTANT OR
ANY DIRECTION REQUEST TESTFOR OR TO MONITORCLEAN UP REMOVE CONTAIN TREATDETOXIFY OR NEUTRALIZE THE ACTUAL

UNDERLYING ALLEGED ANY MATTER WHICH OR IN PRIORTO THE INCEPTION DATE OF THIS POLICYAS BEEN THE THI H SUBJECT OF NOTICE TO ANY INSUREROF CLAIM OR THREAT OF CLAIM OR AN OCCURRENCE WHICH MIGHTGIVE RISE TO CLAIM UNDER ANY POLICY WHICH OF THI THIS INSURANCEIS
RENEWAL
OR

REPLACEMENTOR WHICH

IT

TIME
BASED

MAY SUCCEED IN

POLLUTANT POLLUTANTS

INCLUDING BUT
TO THE

NOT

INSURED ORGANIZATION

LIMITED TO CLAIMS ALLEGING CLAIM DAMAGE

IS NOT LIMITED TO ANY SOLID THERMALIRRITANT CONTAMINANT OR INCLUDING SMOKE VAPOR SOOT FUMES ACIDS FUME ACID ALKALIS ALKALI CHEMICALS CHEMICAL AND WASTE WASTE INCLUDES INCLUDE BUT IS NOT LIMITED TO MATERIALS TO BE MATERIAL RECYCLEDRECONDITIONED OR RECLAIMED

POLLUTANTINCLUDESBUT POLLUTANTS INCLUDE

OFFICER OF ANY ENTITYOTHER THAN THE INSURED ORGANIZATION EVEN IF SUCH SERVICE IS DIRECTED OR REQUESTED BY THE INSURED ORGANIZATION
OR

UPON ARISINGOUT OF DIRECTLY OR INDIRECTLY RESULTING FROM IN CONSEQUENCE OF OR IN ANY WAY INVOLVING SERVICE BY ANY INSUREDPERSON AS DIRECTOR

LIQUIDGASEOUS GASEOU

OR

LOALLEGING ARISING OUT
TO THE

OF BASED UPON

01

ATTRIBUTABLE

BY AN INSURED PERSON
DEFINED
IN THIS THI

ANY CAPTIVE INSURANCE COMPANY OR ENTITYINCLUDING NOT LIMITED BUT TO CLAIMS ALLEGING CLAIM THE INSOLVENCY OR BANKRUPTCY OF THE INSURED ORGANIZATION NAMED IN ITEM

OWNERSHIP MANAGEMENT MAINTENANCE ANDOR CONTROLBY THE INSURED ORGANIZATION OF

OR

INSURED ORGANIZATION AS

DECLARATION DECLARATIONS AS

OF THE

RESULT SUCH OF

POLICY EXCEPT

MANAGEMENT AND CONTROL

OWNERSHIPOPERATION

QWEST00003

Case 1:04-cv-00725-RPM
11BASED
UPON
OR

Document 41-3
OFFER TO

Filed 07/01/2005
THE DEFENSE AND

Page 4 of 35
SETTLEMENT OF ANY CLAIM
THAT

IN

ANY WAY

INVOLVING ANY

OR PURCHASE F SECURITIES OF THE INSURED O SECURITIE AT ORGANIZATION PREMIUM OVER THEIR THEN CURRENT OR MARKET VALUE MADE BY THE INSURED ORGANIZATION

PURCHASE

LIKELYTO INVOLVE THE INSURER APPEARS REASONABLY APPEAR
OTHER

INSURANCE

OTHER

INDEMNIFICATION

PERSON BY ANY OF THE INSURED PERSONS EXCEPT WHERE SUCH HOLDER OFFER OR PURCHASE EXTEND EXTENDS TO ALLSECURITYHOLDERS OF

IN THE EVENT THAT
OR THERE IS ANY OTHER INSURANCE WHETHER PRIOR TO THIS POLICY DIRECTLYOR INDIRECTLY THI SUBSEQUENT

BASED
UPON
OR

THE

INSURED

ORGANIZATION

ACTUAL OR ALLEGED ANY WAY INVOLVING BY ATTEMPTS ATTEMPT WHETHER SUCCESSFUL OR UNSUCCESSFUL

ACT OR COVERING INSURING WMNGFUL BY AN INSURED ANY THI PERSON OTHERWISE COVERED BY THIS POLICYOR THERE IS INDEMNIFICATION TO WHICH
IS ENTITLED FROM ANY
AN

PERSON ORGANIZATION ANY OF ITS INSURED PERSONS TO RESIST
OR

SECURITIE SECURITIES OF THE OR ENTITY TO ACQUIRE IN TO ORGANIZATION OPPOSITION THE BOARD OF OR EFFORT EFFORTS DIRECTOR DIRECTORS OF THE INSURED ORGANIZATION WHETHER SUCCESSFULR UNSUCCESSFULBYTHE INSURED O ANY PERSON INSURED

INSURED PERSON

ENTITY OTHER THAN THE INSURED

ORGANIZATION
THEN ALLOTHER INSURANCE FIRST TO THE NOTICED CLAIM CONSIDERED
OR

INDEMNIFICATION SHALL APPLY
THI AND THIS WILL SHALL NOT BE POLICY INDEMNIFY ONLY THE AMOUNT AND THE AMOUNTS OF

SUCH ATTEMPTS ATTEMPT

CT

ON

4

CONDITION CONDITIONS
PAYMENT
HAS NO DUTY FOR DEFENSE

BUT CONTRIBUTING

DIFFERENCE BETWEEN

ALL AMOUNTS AMOUNT INDEMNIFICATION

RECOVERABLE UNDER ALL

INDEMNITY INSURER

EXPENSE EXPENSES
DEFENSE

OTHER INSURANCE

OR

TO PROVIDE

IT IS THE

DUTYOF THE INSURED PERSON AND NOT THE DUTY
FOR PROVIDE DEFENSE OF CLAIMS CLAIM THE INSURED THE INSURER SHALLINDEMNIFY INSURED

NOT THI LOS ANY LOSS OTHERWISE COVERED UNDER THIS POLICY DECLARATION THE LIMIT OF LIABILITY SHOWN ON THE DECLARATIONS EXCEEDING
TO PAGEAND SUBJECT

IN ALL POLICY PROVISIONS THE EVENT
OR

OF THE INSURER TO T AGAINSTHEM PERSON
OR

THERE IS OTHER INSURANCE INSURED
INSURANCE

PERSON

ORGANIZATIONFOR DEFENSE AFTERFINAL DISPOSITION OF COVERED CLAIM EXPENSE EXPENSES
NO DEFENSE

EXPENSE EXPENSES SHALL BE INCURRED AND
SHALL BE MADE SUCH CONSENT

AND SHALL
INSURANCE

NO

INDEMNITYAVAILABLE TO THE THI OR ORGANIZATIONTHEN THIS EXCES EXCESS ONLY SHALL PROVIDE SPECIFIC COVERAGE TO THE TERMS TERM OF ANY OTHER NOT BE SUBJECT
INSURED
OR

INDEMNITY RETENTION
PAYMENT OF LOSS LOS

SETTLEMENT OF ANY CLAIM

WITHOUT THE
NOT TO BE

INSURER INSURERS WRITTEN CONSENT

LIMIT

OF LIABILITY

EXPENSE UNREASONABLY WITHHELD ANY DEFENSE EXPENSES INCURRED OR SETTLEMENTS MADE WITHOUT THE WRITTEN SETTLEMENT
THI CONSENT OFTHE INSURER WILLNOT BE COVERED UNDER THIS

THE AMOUNT THE MAXIMUM

STATED IN LTEM

OF THE DECLARATION IS

UNDER THE LIMIT OF LIABILITY AGGREGATE

POLICY
THE INSURER UNDER SECTION 1 INSURINGCLAUSE WRITTEN REQUEST AN INSURED PERSON PAY BY MAY UPON
ON

POLICY AND THE TOTAL AMOUNT THE INSURER SHALL BE
WHETHER TO OBLIGATED INDEMNIFYUNDER THE POLICY OR OR UNDER SECTION 1 INSURING AGREEMENT AGREEMENTS OF BOTH REGARDLESS THE TIME OF PAYMENT BY THE REGARDLES INSURER DEFENSE EXPENSES SHALL BE PARTOF AND NOT EXPENSE AND PAYMENT OF IN ADDITION TO THE LIMIT OF LIABILITY THE DEFENSE EXPENSES BY THE INSURERWILLDEPLETE LIMIT EXPENSE OF LIABILITY BASED ON O ARISINGOUT OF DIRECTLYR FROM IN CONSEQUENCE OF OR IN INDIRECTLY RESULTING THE OR RELATEDFACTS CIRCUM FACT ANY WAY INVOLVING SAME ALL CLAIMS CLAIM STANCE STANCES
SAME OR

CURRENT

BASI BASIS

DEFENSE

OTHERWISE
EXTENT

UNDER THIS THI PAYABLE

EXPENSE EXPENSES WHICH ARE EXCEPT TO THE POLICY

THAT THE INSURED

IS OR ORGANIZATION REQUIRED

THE INSURED PERSON FORSUCH PERMITTEDTO INDEMNIFY DEFENSE

EXPENSES
THE INSURER INSURING CLAUSE WRITTEN REQUEST BY THE INSURED
1

UNDER SECTION MAY UPON

BASI R CURRENTBASIS DEFENSE ORGANIZATIONEIMBURSE ON UNDER THIS THI WHICH ARE OTHERWISE PAYABLE EXPENSE EXPENSES POLICY

EVENT SITUATION TRANSACTION SITUATIONS TRANSACTIONS OR EVENTS OR THE RELATED SERIES OF FACTS CIRCUMSTANCES SERIE FACT CIRCUMSTANCE
OR

SITUATION TRANSACTION SITUATIONSTRANSACTIONS
TO BE
IF

EVENT EVENTS SHALL BE DEEMED

ANY INSURED PERSON
THAT REQUESTING

OR

THE INSURED
ON

ORGANIZATION
CURRENT

CLAIM SINGLE CLAIM IS COVERED UNDER THE
MORE

THE INSURER PAY

BASI BASIS

LOS LOSS FROM

THAN

ONE

DEFENSE EXPENSES FOR CLAIM HEREUNDER MUST AGREE EXPENSE IN WRITINGPRIOR ANY PAYMENT OFDEFENSE EXPENSES TO EXPENSE

INSURING CLAUSE
ITEM OF THE

R APPLICABLEETENTION STATED IN DECLARATION DECLARATIONS PAGE SHALL BE APPLIED

BY THE
OR

THAT UPON DEMAND THE INSURED PERSON INSURER
OR ORGANIZATION BOTH WILL REPAY THE ALL DEFENSE EXPENSES PAID TO OR ON BEHALF EXPENSE

THE INSURED

INSURER

OF SUCH INSURED PERSON IN CONNECTION
CLAIM
IF

WITH SUCH
NO

TO LOS SEPARATELY THAT PARTOF THE LOSS COVERED BY EACH RETENTION CLAUSE AND THE SUM OF SUCH RETENTIONS SHALL INSURING BE THE RETENTION APPLICABLETO SUCH CLAIM HOWEVER THE TOTAL RETENTION SHALL NOT EXCEED THE LARGEST

DETERMINE THE INSURER DETERMINES

THAT THERE IS
OR

RETENTION STATED IN ITEM THE

OF THE DECLARATIONS PAGE DECLARATION RETENTION AND

COVERAGE UNDER INSURING CLAUSE THE INSURED AND ORGANIZATION

B
PERSON PERSONS

THE INSURED

REIMBURSEMENT COMPANY SECTION INSURING CLAUSE
TO ALL CLAIMS CLAIM

SHALL BE APPLICABLE

TO SHALL GIVE THE INSURER THE RIGHT ASSOCIATE ITSELF IN

WHENEVER

INDEMNIFICATION

BY

THE

QWEST00004

INSURED

ORGANIZATIONIS LEGAFLYERMISSIBLE OR P Case 1:04-cv-00725-RPM Document STATUTORILY REQUIREDWHETHER OR NOT THE INSURED H ORGANIZATIONAS AGREED TO INDEMNIFYITS INSURED
PERSON PERSONS
CANNOT
OR

41-3PERIOD IS NOT CANCELLABLE Filed 07/01/2005
CONTAINED HEREIN SHALL NOT

THI THIS

Page 5 ofAND CLAUSE 35
TO ANY

THE

RIGHT RIGHTS

APPY

CANCELLATION

FROM NONPAYMENT OF PREMIUM RESULTING RENEWAL PROVISION

NOT EXCEPTWHERE ACTUAL INDEMNIFICATION

BE MADE

INSURED

BY THE INSURED ORGANIZATION ITS TO PERSONS PERSON SOLELY BY REASON OF THE INSURED

ORGANIZATIONFINANCIAL INSOLVENCY ORGANIZATIONS EXCEPTFOR THE PAYMENT
OF DEFENSE

THE OFFER BY THE INSURER OF RENEWAL TERMS CONDITIONS TERM CONDITION LIMIT LIMITS OF LIABILITY ANDOR PREMIUMS VARYING FROM THOSE OF PREMIUM THE S EXPIRING POLICYHALL NOT CONSTITL5TEREFUSALTO RENEW OF CLAIM OR CIRCUMSTANCE

EXPENSE EXPENSES
AND

AS

PROVIDEDIN SECTION 4 CONDITIONS CONDITION
INSURER SHALL INDEMNIFY FOR LOSS LOS

THE

NOTICE
IF AS

ONLY UPON

THE FINAL THE POLICY PERIOD DURING ANY CLAIM IS FIRSTMADE CONDITION PRECEDENT INDEMNITYTHE INSURED TO

DISPOSITION OF

ANY CLAIM

COOPERATION SUBROGATION
IN THE EVENT OF CLAIM
OR

NOTICE OF CIRCUMSTANCES CIRCUMSTANCE UNDER THE INSURED PERSON WILL

SECTION 4 CONDITIONS CONDITION

PROVIDETHE INSURER WITH ALL INFORMATIONSSISTANCEAND A
THAT THE INSURER REASONABLY COOPERATION REQUEST AND WILL REQUESTS
NO ACTION THAT MAY PREJUDICE THE INSURED PERSONS OR PERSON INSURER INSURERS POSITION OR POTENTIAL ACTUAL RIGHTS DEFENSE OR RIGHTOR

TAKE

ORGANIZATION MUST GIVE WRITTEN NOTICE TO ROYAL INC SPECIALTY NDERWRITING ON BEHALF OF THE INSURER U BY CERTIFIED MAIL AND PROPERLYDDRESSED TO THE A ADDRES ADDRESS SHOWN ON THE DECLARATIONS DECLARATION PAGE OF SUCH CLAIM AS SOON AS PRACTICABLE AFTERSUCH CLAIM IS FIRST MADE AND IN NO EVENT LATERTHAN THE EXPIRATION DATE OR ANY EARLIER CANCELLATION DATE OF THIS THI POLICY
IF

UNDER THE

EVENT OF PAYMENT TO WHO SHALL EXECUTE

WITHOUT THE INSURERS CONSENT IN THE INSURER POLICY BY THE INSURER SHALL BE SUBROGATED IT ALL OF THE RIGHTS RECOVERY OF THE INSURED PERSONS OF RIGHT PERSON ALL PAPERS PAPER AND TAKE ALL NECESSARY

INSURED

THE DURING POLICY PERIODAN INSURED ORGANIZATION FIRST BECOMES BECOME CLAIM

PERSON
AWARE

OR

THE

OF ANY

CIRCUMSTANCE WHICH MAY REASONABLY EXPECTEDTO BE

GIVERISE TO
AS SOON AS

ACTION ACTIONS TO SECURE SUCH RIGHTS THE RIGHT INCLUDING EXECUTION OF ANY DOCUMENTS NECESSARY TO ENABLE THE INSURER DOCUMENT
TO EFFECTIVELY BRINGSUIT

AGAINSTNY INSURED PERSON AND A PRACTICABLE THEREAFTER BEFORE THE

IN THE INSURED PERSONS PERSON

NAME

DATE EXPIRATION OR ANY EARLIERCANCELLATION DATE OFTHE POLICY GIVE GIVES TO ROYAL PECIALTY NDERWRITING ON S INC U BEHALF OF THE INSURER WRITTEN NOTICE VIA CERTIFIED MAIL AT THE ADDRESS SHOWN ON THE DECLARATIONS ADDRES DECLARATION PAGE OF SUCH CIRCUMSTANCE WITH FULLPARTICULARS THE ALONG PARTICULAROF SPECIFIC ALLEGED WRONGFULCT THEN ANY CLAIM A MADE AGAINST AN INSURED PERSON SUBSEQUENTLY
OUT ARISING OFSUCH CIRCUMSTANCE MADE DURING THE POLICY PERIOD

ANY

AMOUNT

REPAYMENT PERSON AND

RECOVERED SHALL BE APPORTIONEDFOR THE OF FIRSTTHE INSURERS SUBROGATION INSURER EXPENSE EXPENSES
SO

FEE FEES AND COSTS SECOND PAYMENTS BY THE INSURED LEGAL COST PAYMENT
OR

INSURED

IN EXCES ORGANIZATION EXCESS

OFTHE RETENTION

INSURER

APPLICABLE INSURANCE THIRD PAYMENTS BY AN EXCESS PAYMENT EXCES FOURTH PAYMENTS BY THE INSURER AND LAST PAYMENT
PERIOD
OR

WILLBE DEEMED

FIRST

REIMBURSEMENT OF THE RETENTION
DISCOVERY
IF

MERGER
REFUSE TO
RENEW

CONSOI1DATION

OR ACQUISITION

POLICY SHALL HAVE THE RIGHT UPON ORGANIZATION PAYMENT OF AN ADDITIONAL PREMIUM OF FIFTY PERCENT 50 OF THE FULL ANNUAL PREMIUM TO PERIOD OF NINETY 90 DAY FOLLOWING EFFECTIVE DATE OF SUCH CANCELLATION OR DAYS THE
THE INSURED NONRENEWAL HEREIN REFERREDTO AS THE DISCOVERY PERIOD IN WHICH TO GIVEWRITTEN NOTICE TO THE INSURER OF CLAIMS CLAIM THE PERSON AGAINST INSURED PERSONS DURING SAID NINETY DAY PERIOD FOR ANY WRONGFUL OCCURRING ACT PRIORTO THE END OF THE POLICY PERIOD AND OTHERWISE COVERED BY THIS THI POLICY AS USED HEREIN FULL ANNUAL PREMIUM MEANS MEAN THE PREMIUM LEVEL IN EFFECT IMMEDIATELY PRIOR THE END TO OF THE POLICYPERIOD FIRSTMADE

THE INSURER SHALL CANCEL

THI THIS

IF

AFTER THE
OR

CREATE CREATES

INCEPTION DATE THE INSURED ORGANIZATION ACQUIRE ACQUIRES SUBSIDIARY THAT SUBSIDIARY ILL W

BE DEEMED TO QUALIFY AN INSURED ORGANIZATION AS BUT FOR WRONGFUL ON OR AFTERTHE EFFECTIVE DATE ACT ONLY
OR ACQUISITION FOR THE FIRST NINETY DAY AFTERTHE DATE OFTHE CREATION OR ACQUISITION DAYS AFTER THIS NINETY90 THI DAY PERIOD THE CREATED OR ACQUIRED WILL NO LONGER DEEMED AN SUBSIDIARY BE INSURED ORGANIZATION UNLES UNLESS

OF SUCH CREATION

90

90

WRITTEN NOTICE OF THE CREATION

OR

ACQUISITION IS

GIVENTO THE INSURER BYTHE INSURED ORGANIZATION WITHIN SIXTY 60 DAYSOFTHE DATE OF THE CREATION DAY
OR

ACQUISITIONSUCH WRITTEN NOTICE SHALL INCLUDE

THE

RIGHTCONTAINED RIGHTS

WRITTEN NOTICE ADDITIONAL

IN THIS CLAUSE SHALLTERMINATE UNLESS THI UNLES OF SUCH ELECTION TOGETHER WITH THE IS RECEIVED
AT

PREMIUM

BY ROYALSPECIALTY

SHOWN ON THE DECLARATION DECLARATIONS PAGE WITHIN TEN 10 DAYS OF THE EFFECTIVE DAY DATE OF CANCELLATION OR NONRENEWAL THE FULLADDITIONAL PREMIUM FORTHE DISCOVERY PERIOD SHALL BE FULLY EARNED
AT THE

UNDERWRITING INC

THE

ADDRES ADDRESS

COPY OF THE MOST RECENT AUDITED FINANCIAL STATEMENT STATEMENTSOF THE SUBSIDIARYII COPY OF THE CREATION OR ACQUISITION DOCUMENT DOCUMENTS AND III NEW DIRECTOR COMPLETEDROYALDIRECTORSAND OFFICERS APPLICA OFFICER TION GIVINGFULLPARTICULARS THE NEW SUBSIDIARY OF PARTICULAR WHICH IS ACCEPTABLETO THE INSURER THE INSURED ORGANIZATIONPROVIDES THE INSURER PROVIDE WITH ANY ADDITIONAL INFORMATION THE INSURER MAY

INCEPTION OF THE DISCOVERYERIOD THE DISCOVERY P

REQUEST

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Page 6 of 35
OBLIGATION

TERM THEINSURED ORGANIZATION AGREE AGREES TO THE TERMS EXCLUSION EXCLUSIONS AND ADDITIONALPREMIUM CONDITION CONDITIONS BY CHARGEAS MAY BE REQUIRED THE INSURER AND THE

PERSON UNTIL THE AMOUNT OF THE INSURED PERSONS

DETERMINED EITHER BY TO PAY LOS LOSS HAS BEEN FINALLY PERSON PERSONS AFTER THE INSURED JUDGMENT AGAINST
OR PROCEEDING PROCEEDINGSBY WRITTEN AGREEMENT ADJUDICATORY THE CLAIMANT AND THE INSURER OF THE INSUREDPERSONS PERSON

INSURER

AT ITS SOLE

DISCRETION AGREES IN AGREE

TO OF WRITINGTO EXTEND THE COVERAGE THE POLICY SUBSIDIARY IF THE THE CREATED OR ACQUIRED

NO INSURED PERSON THI RIGHTUNDER THIS
TO ANY CLAIM

OR

INSURED

INFORMATION

IN

AND

IS RECEIVED

TO POLICY

HAS ORGANIZATION ANY PARTY JOINTHE INSURER AS

AND THE INSURER DAY PERIOD DOE DOES NOT EXPRESSLY ACCEPT OR DECLINE TO EXTEND WITHIN THE INITIAL NINETY90 DAY PERIOD COVERAGE WITHIN THE SIXTY 60 WILLBE EXTENDED DAYPERIOD DECLINE INSURER EXPRESSLY ACCEPT ACCEPTSOR DECLINES UNTIL THE OF COVERAGE SUCH EXTENSION THEN SUCH NINETY90

AN AGAINST INSUREDPERSON TO DETERMINE

THE OF PERSON THE LIABILITY SUCH INSUREDPERSONS NOR SHALL BE IMPLEADED AN INSURED PERSON OR HIS INSURER BY HER
OR

ITS

IN ANY R LEGAL EPRESENTATIVE AND

SUCH CLAIM

AUTHORIZATION

NOTICE NOTICES

DATE THE INSURED ORGANIZATION INCEPTION INTO ANY WITH OR CONSOLIDATED IS ACQUIREDY MERGED B IS SUCH THAT THE INSURED ORGANIZATION NOT THE ENTITY S UNDER THIS POLICYHALL THI SURVIVING ENTITY THEN COVERAGE THE DATE OFSUCH ACQUISITION CEASE IMMEDIATELYPON U
IF

AFTERTHE

THAT THE INSURED ORGANIZATION PERSON THE INSURED PERSONS AGREE AND RECEIVING TO WITH RESPECT GIVING ACT ACTS ON THEIR BEHALF NOTICE ALL NOTICES AND RETURN OF CHANGE CHANGES

PREMIUM FROM

THE INSURER

MERGEROR CONSOLIDATIONFORTHE PURPOSE OF SECTION
3 DEFINITION DEFINITIONS
OR

THE DATE OF SUCH

ACQUISITION
THE

MERGER

CONSOLIDATION SHALL BE DEEMED

P BY KNOWLEDGEOSSESSED ANY ON BYPERSONSACTING BEHALFOF PERSON AGENT REPRESENTATION REPRESENTATIONS IN WAIVER OR CHANGE ANY THE INSURER DOES NOT EFFECT DOE OF THIS POLICY ESTOP THE INSURER FROM ASSERTING THI OR PART
NOTICE TO ANY AGENT
OR OR

DATE EXPIRATION SALE OR DISSOWTION OF SUBSIDIARY

INCEPTION DATE ANY SUBSIDIARY IS SOLD OR ONLY THI TO TERM DISSOLVEDTHIS POLICY SUBJECT ITS TERMS SHALLAPPLY PERSON TO TO PERSONS WHO WERE INSURED PERSONS PRIOR THE SALE PERSON
IF AFTER THE
OR

LIMITATION TINDER THE TERMS CONDITIONS AND LIMITATIONS OF TERM CONDITION RIGHT LIMITATION THE TERMS CONDITIONS AND LIMITATIONS OF THE CONDITION THI THIS POLICY TERM POLICY CAN ONLYBE WAIVED OR CHANGED BY WRITTEN ANY ENDORSEMENT ASSIGNMENT THI DOE ASSIGNMENT OF INTEREST UNDER THIS POLICYDOES THE INSURER WITHOUT ITS WRITTEN CONSENT CANCELLATION THI THIS
NOT BIND

MADE TO CLAIMS FIRST DISSOLUTION AND ONLYWITH RESPECT CLAIM
OR

THE DURING POLICYPERIOD

PERIOD FORWRONGFUL DISCOVERY

TO TO HAVE BEEN COMMITTED PRIOR THE DATE ACT ACTS ALLEGED OF SALE OR DISSOLUTION NO COVERAGE WILL BE AFFORDED FOR PERSON AFTER THE BECOME ANY PERSON WHO BECOMES AN INSURED DATE OF SALE OR DISSOLUTION

REPRESENTATION REPRESENTATIONS

BE CANCELEDBY THE INSURED ORGANIZATION THI BY WRITTENNOTICE OR BY SURRENDER OFTHIS POLICY INC AT THE AT ANY TIME TO ROYALSPECIALTY NDERWRITING U DECLARATION ADDRES ADDRESS SHOWN IN THE DECLARATIONS PAGE

POLICY MAY

AT ANY TIME

ORGANIZATION THROUGH ITS AUTHORIZED REPRESENT THAT AS OF THE INCEPTION DATE REPRESENTS REPRESENTATIVE THE PARTICULARS STATEMENTS CONTAINED AND OF THIS POLICY THI PARTICULAR STATEMENT TRIJE AND CORRECT AND IN THE APPLICATION ARE COMPLETE AND STATEMENT THAT THOSE PARTICULARS STATEMENTS ARE THE PARTICULAR AGREE THI BASI BASIS OF THIS POLICYAND ARE TO BE CONSIDERED AS THI INTO PARTOF THIS POLICY INCORPORATED AND CONSTITUTING AND STATEMENTS ARE MATERIAL TO THE STATEMENT THOSE PARTICULARS PARTICULAR ACCEPTANCE OF THE RISK ASSUMED BYTHE INSURER AND THETRUTHFULNES AND IS THI THIS POLICY ISSUED IN RELIANCE UPON THETRUTHFULNESS EXCEPTFOR COMPLETENES COMPLETENESSOF SUCH REPRESENTATIONS
THE INSURED MATERIAL FACTS OR CIRCUMSTANCES KNOWN TO THE PERSON FACT CIRCUMSTANCE PERSON PERSONS WHO
OR

POLICY MAY ALSO BE CANCELED AT ANY TIME BY ROYA INC UNDERWRITING ON BEHALF OF THE INSURER SPECIALTY OR TO TO DELIVERY THE INSURED ORGANIZATION BYMAILING TH FIR CERTIFIEDR OTHER FIRS O INSURED ORGANIZATION BYREGISTERED IN THIS POLICY WRITTET THI CLAS CLASS MAIL TO THE ADDRESS SHOWN ADDRES LES DAY NOTICE STATING WHEN NOT LESS THAN SIXTY 60
THE THE CANCELLATION WILL BECOME THEREAFTER EFFECTIVE THI OF MAILINGOF SUCH NOTICE WILLBE SUFFICIENT PROOF NOTIC AND THIS POLICY THI WILL TERMINATE AT THE DATE AND HOU

SPECIFIED
IF

IN THE NOTICE

THI THIS

THE NO SIGNED APPLICATION STATEMENT IN THE OR BY OR APPLICATION KNOWLEDGE INFORMATION POSSESSED
AN

IS POLICY

CANCELED BY THE INSURED

SHORTRATE THE INSURERWILLRETAINTHE CUSTOMARY OF THE
IF

ORGANIZATIOR PROPORTIO

INSURED PERSON WILLBE IMPUTED TO ANY OTHER INSURED

PREMIUM HEREON

PERSON FOR THE PURPOSE OF DETERMINING THE AVAILABILITY OF COVERAGE NO ACTION AGAINST THE INSURER

THI THIS POLICYIS CANCELED BY THE INSURERTHE INSURER OF RETAIN THE PRO RATA PROPORTION THE PREMIUM HEREOT

PAYMENT

OR

TENDER OF ANY UNEARNED

PREMIUM BY TI

INSURER IS NOT

TO CONDITION PRECEDENT THE EFFECTIVENE

BE TAKEN AGAINSTTHE INSURER UNLESS UNLES THERE HAS BEEN FULL AS CONDITION PRECEDENT THERETO THI TERM COMPLIANCE WITH ALL OF THE TERMS OF THIS POLICYAND NO ACTION MAY

OF CANCELLATION BUT SUCH PAYMENT WILLBE MADE AS SOC AS PRACTICABLE AFTERTHE CANCELLATION DATE IS EFFECTIVE
TO THE PERIOD OF LIMITATION RELATING THE

GIVINGOF NOTK

QWEST00006

CONSTRUCTION THEREOF SUCH PERIOD WILLBE DEEMED TO BE SO AS TO BE EQUALTO THE MINIMUM PERIOD OF LIMITATIONPERMITTED BY SUCH LAW
AMENDED
IF THE

Document ROHIBJT Case 1:04-cv-00725-RPM OR MADE VOID BY ANY LAW THE CONTROLLING

41-3

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Page 7 of 35
INSUREDPERSONS PERSON AGREE THAT

ACCEANCE
THE INSURERJ ORGANIZATJ AND

THJ

INSURED OGANJZ ION FAILS TO PAY ANY PREMIUM WHEN FAIL DUE THE INSURER MAY CANCEL THE POLICY TEN
WRLRTTEN NOTICE UPON THE INSURER SHALLNOT BE REQUIRED RENEW TO THI THIS ITS EXPIRATION

10 DAYS DAY

AND ANY AGREEMENT BEEEN THEM AND THE INSURER TO THI RELATING THIS INSURANCE

POLICY INCLUDING THE

APPLICATION

ENDORSEMENT CONSTITUTE THE ENTIRE ENDORSEMENTS

POLICY

HEADING HEADINGS
THE DESCRIPTION IN THE HEADINGS AND SUBHEADINGSTHE HEADING SUBHEADING OF ARE POLICY SOLELYOR CONVENIENCE AND FORM F NO OF

POLICYPON U

EXHAUSTION
WHEN
IS LIABILITY EXHAUSTED BY THE INDEMNIFICATION LOSS INCLUDING FOR LOS DEFENSE EXPENSES EXPENSE THE

THE TERMS AND CONDITIONS OF TERM CONDITION COVERAGE

PART

LIMIT OF

GOVERNING LAW
THI THIS

CLAUSE

ALL OBLIGATIONS THE INSURER OBLIGATIONOF UNDER THIS POLICY THI WILL BE FULFILLEDND EXTINGUISHED A AND THE INSURERWILL HAVE NO FURTHEROBLIGATIONS OBLIGATIONOF ANY KIND OR NATURE WHATSOEVER UNDER THIS POLICY THI IN

POLICY SHALL TO THE EXTENT PERMITTED BY APPLICABLE LAWBE CONSTRUED IN ACCORDANCE WITH THE LAWSOF LAW

WITES WITESS WHEREOF JNSURE THE HAS CAUSED THIS THI POLICY BE EXECUTED TO COUNTERSIGNED THE DECLARATIONS ON DECLARATION PAGE BY DULYAUTHORIZED

PERTAINING THE LAW SUBSIDIARY LAWSOF THE STATE OR JURISDICTION OF INCORPORATION OR ORGANIZATION THEREOF
TO AND B ATTESTEDUT THI THIS

JURISDICTION INCORPORATION OF OR ORGANIZATION OF INSWECJ ORGANIZATION IN THE CASE OF MATTERS OR MATTER
OR

THE STATE THE

POLFCY SHALL NOT

AGENT OF THE INSURER

BE VALID UNLESS UNLES

CORPORATE SECRETARY

PRESIDENT

7

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Page 8 of 35

LIST OF OFFICERS OFFICER AND DIRECTORS DIRECTOR OF THE

QUIZNO QUIZNOSCORPORATION

CHIEF EXECUTIVEOFFICERRESIDENT P AND DIRECTOR RICHARD E SCHADEN
AND DIRECTOR RICHARD SECRETARY F

SCHADEN

TREASURERND CHIEF FINANCIAL OFFICER JOHNL GALLIVAN A EXECUTIVEVICE PRESIDENT FRANCHISE OF SERVICE JOHN F SERVICES SUPPORT SENIORVICE PRESIDENT DEVELOPMENT K ADAMS OF SCOTT ADAM SENIORVICE PRESIDENT REAL OF CONSTRUCTION ESTATEDESIGN ROBERTW SENIORVICE PRESIDENT OF MARKETING A SUE HOOVER SCANLON IFI FITCHETT

VICE PRESIDENT AND GENERAL COUNSEL PATRICK E VICE PRESIDENT PURCHASING J FOWLER OF PETER VICE PRESIDENT TRAINING OF JANICE L BRANAM VICE PRESIDENT OF

MEYER MEYERS

CORPORATE OPERATIONS B GEORGE BOEDECKER JR
RICHARD D DEVELOPMENT CRETE

VICE PRESIDENT OFPRODUCT LINE BOARDDIRECTOR FREDERICK H

SCHADEN

BOARDDIRECTOR J ERIC LAWRENCE BOARDDIRECTOR BROWNELLM BOARD DIRECTOR MARK L

BAILEY

BROMBERG

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LIST OF OFFICERS OFFICER AND DIRECTORSFOR DIRECTOR SUBSIDIARIE OF SUBSIDIARIES THE QUIZNOS QUIZNO CORPORATION

CHIEF EXECUTIVE OFFICER PRESIDENT AND DIRECTORRICHARDE SCHADEN CHIEF TREASURER FINANCIAL OFFICER AND DIRECTORJOHN L GALLIVAN VICE

PRESIDENT AND DIRECTOR PATRICK MEYERS SECRETARY E MEYER

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Page 10 of 35

LIST OF SUBSIDIARIESOF SUBSIDIARIE
THE

QUIZNO QUIZNOS CORPORATION

1

THE

QUIZNO REALTY OMPANY QUIZNOS C
DECEMBER INCORPORATED 1995

A

B
C

NETWORTHO
NET INCOME 0

2

THE

QUIZNO DEVELOPMENT QUIZNOS COMPANY

A

INCORPORATED 23 AUGUST
NET WORTH
NET INCOME

1995

B
C

271325
0

3

THE

QUIZNO OPERATING QUIZNOS COMPANY
OCTOBER INCORPORATED 21
NET WORTH NET INCOME 1994

A

B
C

1023227 191878

4

THE

QUIZNO ACQUISITION QUIZNOS COMPANY INCORPORATED MAY
NET WORTH 0 NET INCOME 1997

A

B
C

0

5

CLASSICSUBSLLC SUB
A

51

THE

QUIZNOT QUIZNOTS 49 OPERATING COMPANY

SCOTT K

ADAM ADAMS

INCORPORATED 1992 SEPTEMBER
NETWORTHO NET INCOMESO
OWNEDBY THE UNLES UNLESS QUIZNO CORPORATION OTHERWISE QUIZNOS INDICATED

B
C

ALL SUBSIDIARIES SUBSIDIARIE ARE 100

ALL SUBSIDIARIES SUBSIDIARIE ARE DOMESTICCOMPANIESTHE IN COMPANIE SERVICE RESTAURANT USINESS QUICK B

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DAWN DEMARCE FORMER OF EMPLOYEE THE QUIZNOS FLEAAN QUIZNO OPERATING COMPANY ADMINISTRATIVE CLAIM WITH THE COLORADO OFTHE EQUIVALENT ALLEMPLOYEES W EMPLOYEEEAR THE

COMMISSION THAT STATING THE QUIZNOS QUIZNO OPERATING HEALTH COMPANY COMPANYS AND SAFETY THAT REQUIREMENT

EQUAL EMPLOYMENT OPPORTUNITY

WHEN HANDLING VIOLATED AMERICAN WITH DISABILITIES ACT GLOVE GLOVES FOOD THEAMERICANS DISABILITIE QUIZNO OPERATING QUIZNOS HAS TO THE COMPANY RESPONDED CLAIM AND FEELS FEEL THATTHECLAIM IS NOT MERITORIOUS AS OF THISDATE THI THE CLAIM IS PENDING

QWEST0001

Case 1:04-cv-00725-RPM
THI THIS ENDORSEMENT

Document 41-3

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READ
IT

Page 12 of 35

CHANGETHE CHANGES POLICY PLEASE

ROYAL
INSURANCE

CAREFULLY

DIRECTOR DIRECTORS NUCLEAR

AND

OFFICER OFFICERS

LIABILITY

POLICY

ENERGY

LIABILITY

EXCLUSION

IT I

IS

THAT THE POLICY DOE DOES NOT APPLY AGREED UNDER ANY LIABILITY TO COVERAGE INJURYISEASEDEATHOR DESTRUCTION D WITHRESPECT WHICHAN INSUREDUNDERTHE POLICY ALSOAN INSURED UNDER TO IS

OR

LIABILITY POCY ISSUED BY NUCLEAR ENERGYIABILITY INSURANCEASSOCIATION MUTUAL L ATOMIC ENERGY UNDERWRITEROR UNDERWRITERS NUCLEARINSURANCE LIABILITY ASSOCIATIONOF CANADA OR WOULD BE AN INSUREDUNDER BUTFOR TERMINATION ITS ANY SUCH POLICY OFITSMFT OF LIABILITY UPON EXHAUSTION
HAZARDOU PROPERTIE HAZARDOUS PROPERTIES NUCLEAR MATERIAL AND WITH RESPECT WHICH OF TO ANY PERSON OR ORGANIZATION IS REQUIRED MAINTAIN FINANCIALPROTECTION TO PURSUANTTO THE ATOMIC ENERGY OF 1954 OR ANY LAW ACT OR THE INSURED IS OR HAD AMENDTORY THEREOF THI THIS POLICY BEEN ISSUED WOULD BE ENTITLED NOT TO INDEMNITY FROM THE UNITED STATES OF STATE AMERICA OR ANY AGENCYTHEREOF WITH ANY PERSON OR ORGANIZATION

NUCLEAR ENERGY

FROM RESULTING THE

11

BY ANY
ILL

UNDER ANY MEDICAL PAYMENTS COVERAGE UNDER PAYMENT OR ANY SUPPLEMENTARY PAYMENT PROVISION PAYMENTS TO IMMEDIATE MEDICAL OR SURGICAL RELATING RELIEF EXPENSES INCURRED TO EXPENSE WITH RESPECT TO BODILY INJURY SICKNES DISEASE OR DEATH RESULTING THE HAZARDOUSPROPERTIES NUCLEAR SICKNESS FROM HAZARDOU PROPERTIE OF FACILITY OR
PERSON

ORGANIZATION

UNDER ANY LIABILITY TO COVERAGE INJURYICKNESSDISEASEDEATH OR DESTRUCTION SICKNES S FROM RESULTING THEHAZARDOUSPROPERTIESNUCLEAR HAZARDOU PROPERTIEF O IF MATERIAL
IS AT ANY NUCLEAR OWNED BY OR OPERATED OR ON BEHALF FACILITY BY HAS BEEN DISCHARGED OR DISPERSED THEREFROM THENUCLEAR MATERIAL IS CONTAINED IN SPENT FUEL OR WASTE AT ANY TIME POSSESSED HANDLED USED PROCESSED STORED TRANSPORTED DISPOSED BY OR ON BEHALF OF AN INSUREDOR OR OF THE INJURY SICKNES DISEASE DEATH OR DESTRUCTION SICKNESS ARISE ARISES OUT OF THE FURNISHING AN BY INSUREDOR SERVICES SERVICE MATERIALSPARTS OR EQUIPMENT CONNECTION WITH THE MATERIAL PART IN PLANNING CONSTRUCTION MAINTENANCE OPERATION USE OFANY NUCLEAR FACILITY IF SUCH FACILITY OR BUT IS LOCATED WITHIN THE UNITEDSTATES OF AMERICA ITS TERRITORIES STATE TERRITORIE POSSESSIONS CANADA THIS OR POSSESSIONOR THI EXCLUSION TO APPLIE ONLY INJURY OR DESTRUCTION PROPERTYSUCH NUCLEAR APPLIES TO OF AT FACILITY AS USED IN THIS ENDORSEMENT THI HAZARDOU PROPERTIEINCLUDE RADIOACTIVEOXIC OR HAZARDOUS PROPERTIES T EXPLOSIVE PROPERTIE PROPERTIES NUCLEAR MATERIAL MEAN MEANS SOURCE MATERIAL PECIAL ATERIAL BYPRODUCT M S OR MATERIAL SOURCE MATERIAR SPECIALNUCLEAR AND BYPRODUCT MATERIAL MATERIARHAVE THE MEANINGS MEANING GIVEN THEM IN THE ATOMIC ENERGY OF 1954 OR IN ACT ANY LAWAMENDATORY THEREOF SPENTFUEL MEANS ANY FUEL MEAN ELEMENT OR FUELCOMPONENTSOLID OR LIQUIDWHICH HAS BEEN USED

THE NUCLEAR MATERIAL

OF AN INSUREDOR

IV

OR

TO EXPOSED RADIATION

IN

NUCLEAR REACTOR

PGE

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Case 1:04-cv-00725-RPM ROYAL
INSURANCE

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READ
IT

Page 13 of 35

THI THIS ENDORSEMENT CHANGETHE CHANGES

PLEASE POLICY

CAREFULLY

CONTAINING BYPRODUCT MATERIAL AND FROM RESULTING THE OF ORGANIZATIONANY NUCLEAR INCLUDED WITHIN THE DEFINITION FACILITY OF NUCLEAR UNDER FACILITY PARAGRAPH OR THEREOF
OPERATION ANY BY
PERSON
OR

WASTE

MEAN MEANS

ANY WASTE MATERIAL

NUCLEARFACILITY MEAN MEANS

PLUTONIUM PROCESSING OR UTILIZING OR SPENT FUEL

THE ISOTOPEOF SEPARATING ISOTOPES URANIUM OR HANDLINGROCESSING OR PACKAGING P WASTE ANY EQUIPMENT DEVICE USED FOR OR THEPROCESSING OR ALLOYING SPECIAL FABRICATING OF NUCLEAR MATERIAL AT ANY TIME THE TOTALMOUNT OFSUCH IF A MATERIAL THE CUSTODY THE INSURED AT THE IN OF PREMISE WHERE PREMISES
SUCH GRAM GRAMS OF PLUTONIUM URANIUM233 OR
O EQUIPMENTR DEVICE IS LOCATEDCONSISTSOF CONSIST OR OR

ANY NUCLEAR REACTOR ANY EQUIPMENTR DEVICE DESIGNED USED FOR O OR

URANIUM235

ANY COMBINATIONTHEREOF OR

MORE

CONTAIN CONTAINS MORE THAN25 THAN 250 GRAMS OF GRAM

ANY STRUCTURE BASIN EXCAVATIONREMISES PLACE PREMISE OR P PREPARED USED FOR STORAGE DISPOSAL OR THE OR OF WASTE AND INCLUDES INCLUDE THESITEON WHICH ANY OF THE IS LOCATED OPERATIONS FOREGOING ALL OPERATION CONDUCTED SUCH SITE ON AND ALLPREMISES PREMISE USED FORSUCH OPERATIONS OPERATION NUCLEAR REACTOR MEANS ANY APPARATUS MEAN APPARATU DESIGNED USED TO SUSTAIN NUCLEAR FISSION OR IN SELF CHAIN REACTION TO CONTAIN CRITICAL SUPPORTING OR MAS MASS OF FISSIONABLE MATERIAL WITH RESPECT INJURYOR DESTRUCTION TO TO OF PROPERTY WORD THE INJURY DESTRUCTION INCLUDES FORMS OR INCLUDE ALLFORM OF RADIOACTIVE CONTAMINATION PROPERTY OF HEREIN CONTAINEDSHALL BE HELD TO NOTHING VARY ALTER WAIVE OR EXTEND ANY OF THE TERMS TERM CONDITIONS CONDITION PROVISIONAGREEMENTSOR LIMITATIONS THE ABOVE MENTIONED PROVISIONS AGREEMENT LIMITATION OF O POLICY THERTHAN AS ABOVE STATED

ALL OTHER TERMS TERM CONDITIONS CONDITION AND

WARRANTIE WARRANTIES

REMAINING UNCHANGED

ATTACHED AND TO ISSUED TO

FORMING OFTHE POLICY PART NO

THI THIS ENDORSEMENTIS LISTED THE IN POLICY DECLARATION DECLARATIONSIN EFFECT ROMTHE TIME IT IS F OTHERWISE THEEFFECTIVEATEOF THIS ENDORSEMENT AS SHOWN D THI IS BELOW AT
IF

EFFECTIVE

THESAME

THI COVERAGEUNDER THIS POLICY COMMENCES TIME OR HOUR OF THE DAY THE POLICY AS BECAME

EFFECTIVE DATE

ENDORSEMENT NO

COUNTERSIGNECI BY

AUTHORIZED REPRESENTATIVE

DATE

RSU100041 PAGE OF

QWEST0001

Case 1:04-cv-00725-RPM ROYA
INSURANCE

Document 41-3

Filed 07/01/2005
IT

Page 14 of 35

THI THIS ENDORSEMENT CHANGETHE CHANGES

PLEASEREAD POLICY

CAREFULLY

DIRECTOR DIRECTORS AND OFFICERS OFFICER LIABILITY POLICY PRIOR ANDOR PENDING LITIGATION EXCLUSION

IN CONSIDERATIONF THEPREMIUM O CHARGEDIS IT SHALL NOT BE LIABLE MAKE TO

HEREBY UNDERSTOODND AGREEDHAT A T THE INSURER
IN

FOR ANY PAYMENT LOSS LOS INSURED PERSONS BASED UPON OR ATTRIBUTABLE PERSON TO
OF THISPOLICY THI INVOLVING THEINSURED

CONNECTION ITHANY CLAIM MADE AGAINSTHE W T

FACT OR FACTS

LITIGATION TO OR PENDING THEINCEPTION PRIOR AT DATE ORGANIZATION ANDOR INSURED PERSONS OR ARISING OFTHE PERSON OUT CIRCUMSTANCE CIRCUMSTANCES UNDERLYING OR ALLEGEDANY SUCH PRIOR IN OR PENDING LITIGATION

HELDTO VARY ALTER AIVE OR EXTEND W ANY OF THETERMS TERM CONDITIONS CONDITION PROVISIONAGREEMENTS LIMITATIONS THEABOVE MENTIONED PROVISIONS AGREEMENT OR LIMITATIONOF

HEREIN NOTHING CONTAINED SHALL BE

POLICY OTHER THANAS

ABOVE STATED

ALLOTHER TERM CONDITION AND WARRANTIES TERMSCONDITIONS WARRANTIEREMAINING UNCHANGED ATTACHED AND TO ISSUED TO

FORMING OFTHE POLICY PART NO

THI THIS ENDORSEMENTIS LISTED THE IN POLICY IT IS DECLARATION DECLARATIONSIN EFFECT ROMTHE TIME COVERAGEUNDER THIS F THI POLICY OTHERWISE EFFECTIVEATEOFTHIS ENDORSEMENT AS SHOWNBELOW THE COMMENCES D THI IS AT THE SAME TIME OR HOUR THE OF DAYAS THE POLICY EFFECTIVE BECAME
IF

EFFECTIVE DATE

ENDORSEMENT NO

COUNTERSIGNED BY

AUTHORIZED REPRESENTATIVE

DATE

STHOOLLG ED

6192

QWEST0001

ROYAL

Case 1:04-cv-00725-RPM Document 41-3 Filed 07/01/2005 Page 15 of 35 THI THIS ENDORSEMENT THE POILCY CHANGE CHANGES PLEASE READ IT CAREFULLY

INSURANCE

MPLOYMENT

PRACTICE

LIABILITY

IN CONSIDERATION THE PREMIUM OF IT CHARGEDIS HEREBYNDERSTOODND AGREED U A THATCOVERAGEAFFORDED THI EXTENDED TO COVER LOSS FROM BY THIS POLICY IS LOS EMPLOYMENT PRACTICE CLAIM PRACTICES CLAIMS AGAINST AN INSURED PERSON SUBJECT ALLTERMS OFTHISENDORSEMENT ALL THI TO TERM AND OTHER TERM CONDITION AND EXCLUSIONS TERMSCONDITIONS EXCLUSION OFTHEPOLICY

DEFINITION DEFINITIONS
IT

IS

FURTHERNDERSTOOD U AND AGREED THATFOR THE PURPOSEOFTHISENDORSEMENT THI

T ONLYHEFOLLOWING DEFINITION SHALL DEFINITIONS APPLY

SHALLMEAN ANY CLAIM RELATING TO PAST PRESENTR PROSPECTIVE O OF EMPLOYEE ORGANIZATION OR ARISING OF ANY ACTUAL CONSTRUCTIVE FOR OUT OR ALLEGED WRONGFUL DISMISSAL DISCHARGE OR TERMINATIONOF EMPLOYMENT WRONGFUL FAILURE EMPLOY PROMOTE WRONGFUL TO OR DISCIPLINARY ACTION WRONGFUL EMPLOYEE EVALUATION ANY MANNER OF SEXUAL OR WORKPLACE HARASSMENT MANNER OF UNLAWFUL ANY DISCRIMINATIONOR WRONGFUL FAILURE TO PROVIDE ADEQUATE EMPLOYEE POLICIE POLICIESAND PROCEDURES THE INSURED

EMPLOYMENT PRACTICE CLAIMS PRACTICES CLAIM

EMPLOYMENTRACTICES CLAIMS SHALLINCLUDE CLAIMS PRACTICE CLAIM P CLAIM UNDER LOCAL STATE OR FEDERAL LAW BROUGHT WHETHER OR STATUTORY INCLUDESBUT AND INCLUDE ARE NOT LIMITEDTO ALLEGATIONS ALLEGATION OFVIOLATIONS THE FOLLOWING VIOLATION OF FEDERAL LAW LAWS AS ALL REGULATION AMENDEDINCLUDINGREGULATIONS PROMULGATED THEREUNDER
COMMON 1

AND FAMILY

MEDICAL LEAVE ACT OF 1993

2 3 4

AMERICAN AMERICANS WITH DISABILITIESACT OF 1992 DISABILITIE CIVIL RIGHTS OF1991 RIGHTACT

ADA

AGE DISCRIMINATION EMPLOYMENT OF 1967 IN ACT
OF 1990

ADEA INCLUDING OLDER WORKERSBENEFIT PROTECTIONCT THE WORKER A 1983 INCLUDING PREGNANCYISCRIMINATION D ACT
OF

5

TITLE VII OF THE CIVIL RIGHTS RIGHT LAW OF 1964 1978 CIVIL RIGHTS OF 1866 SECTION 1981 AND RIGHTACT

AS AMENDED

6 7

FIFTHAND FOURTEENTH AMENDMENT OFTHE US AMENDMENTS

CONSTITUTION

PERSON SHALLINCLUDE THE FOR PURPOSE PURPOSESOF EMPLOYMENT PRACTICE CLAIM PRACTICES CLAIMS ONLY OFFICER ANY DIRECTOR OF EMPLOYEE THE COMPANY WHETHERSUCH INDIVIDUALIS IN SUPERVISORY COWORKEROR SUBORDINATE POSITIONO THE T CLAIMANT OR CLAIMANTS OTHERWISECOVERAGE APPLYO ALLNEW DIRECTORS SHALL T DIRECTOR OFFICER OR EMPLOYEEELECTED OFFICERS EMPLOYEES APPOINTED OR HIRED AFTER THE INCEPTION OF THE DATE POLICY
OR

INSURED

RSU

EPLNAP

595

PAGE

OF

QWEST0001

ROYAL

Case 1:04-cv-00725-RPM Document 41-3 Filed 07/01/2005 Page 16 of 35 THI THIS ENDORSEMENT THE POLICY CHANGE CHANGES PLEASE READ IT CAREFULLY

INSURANCE

IT

IS FURTHERNDERSTOOD U AND

PRACTICE CLAIM P EMPLOYMENTRACTICES CLAIMS ONLY AS EXCLUSION361

AGREED THATEXCLUSIONS 3B1 EXCLUSION
FOLLOW FOLLOWS

3BX5B

ARE

AMENDED

AS

THEYRELATE TO

IS DELETED ITS IN AND ENTIRETY

AS FOLLOW REPLACED FOLLOWS

THE INSURERSHALL NOT BE LIABLETO MAKE ANY PAYMENT FOR LOS LOSS IN CONNECTION WITH ANY CLAIM MADE AGAINST THE INSURED PERSONS PERSON FOR ANY ACTUALOR ALLEGED BODILY INJURYICKNESS SICKNESDISEASE OR DEATH OF ANY PERSON ASSAULT S BATTERY OR TO DAMAGE OR DESTRUCTIONOF ANY TANGIBLEROPERTY P LOS LOSS INCLUDING OF USE THEREOF OR INVASION OF PRIVACY WRONGFUL ENTRY EVICTION FALSE ARRESTFALSE IMPRISONMENT MALICIOUS OR MALICIOU

PROSECUTION EXCLUSION 3B5B

IS DELETED ITSENTIRETY IN AND

REPLACEDFOLLOWS AS FOLLOW

THE INSURERSHALL NOT BE LIABLE MAKE TO LOS ANY PAYMENT FORLOSS IN CONNECTION WITH ANY CLAIM MADE AGAINST THE INSURED PERSONS PERSON

BYAN

LNSUREDPERSON OR INSURED

ORGANIZATION DEFINED IN AS
AN

THI THISPOLICY XCEPT E INSURED PERSON WHO IS
OR WAS

CLAIM BROUGHT AN INSURED PERSON OTHERTHAN BY DIRECTOR OFTHECOMPANY THEIR FOR ALLEGED

EMPLOYMENT PRACTICE PRACTICES CLAIMS

NOTHINGEREIN CONTAINED SHALLBE HELD TO VARY ALTER H WAIVE OR EXTEND ANY OF THE TERMS TERM CONDITIONS PROVISIONS CONDITION PROVISION AGREEMENT AGREEMENTS OR LIMITATIONS THE BELOWMENTIONED POLICY LIMITATION OF OTHER THAN AS ABOVE STATED

ALLOTHER TERM CONDITION AND WARRANTIES TERMS CONDITIONS WARRANTIEREMAINING UNCHANGED ATTACHEDTO AND FORMING OFTHE PERT NO POLICY ISSUED TO

THI THIS ENDORSEMENT IS LISTEDIN THE POLICY IT IS DECLARATION DECLARATIONSIN EFFECT ROMTHETIME COVERAGEUNDER THISPOLICY F THI COMMENCES EFFECTIVE DATE OF THIS ENDORSEMENTIS AS SHOWN BELOWAT THE THI SAME TIME OR HOUROFTHE DAYAS THE POLICY BECAME EFFECTIVE
IF

THE OTHERWISE

EFFECTIVE DATE

ENDORSEMENT NO

COUNTERSIGNED BY

AUTHORIZED REPRESENTATIVE

DATE

UI

EPINAP

595

PAGE

OF

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IT

Page 17 of 35

THI THIS ENDORSEMENT CHANGES CHANGE THE

ROYAL
INSURANCE

PLEASE POLICY

CAREFULLY

INSURED

AMENDED

TO INCLUDE

SUBSIDIARIE SUBSIDIARIES

IN CONSIDERATION THE PREMIUM OF IT CHARGEDIS INSURED
IS ORGANIZATIONDELETEDIN

HEREBY UNDERSTOOD AGREED SECTION2 DEFINITIONS AND THAT DEFINITION ITS ENTIRETY REPLACED THEFOLLOWING AND WITH

INSURED ORGANIZATION MEAN MEANS THEORGANIZATION NAMED IN ITEM OF THE DEDARATIONS DEDARATION AND ANY SUBSIDIARY EXISTING TO OR AT THEINCEPTION PRIOR DATEOFTHISPOLICY LISTED THI AND ON THE APPLICATION ATTACHED THIS POLICY ADDITION THI IN INSURED ORGANIZATION SHALL MEAN CREATED OR ACQUIRED ANY SUBSIDIARY AFTER THE INCEPTION OF THE POLICY DATE TO SUBJECTSECTION4 CONDITION MERGERONSOLIDATIONR ACQUISITION C O HEREINCONTAINED NOTHING SHALL BE HELD TO VARY AFTER WAIVE OR EXTENDANY OFTHE TERMSCONDITIONS TERM CONDITION PROVISIONAGREEMENTS OR LIMITATIONS THE BELOWMENTIONEDPOLICY PROVISIONS AGREEMENT LIMITATIONOF OTHERTHAN AS ABOVE STATED

ALL OTHER TERMS CONDITION AND WARRANTIES TERM CONDITIONS WARRANTIEREMAINING

UNTHANGECI

ATTACHEDTOAND ISSUED TO

FORMING OF THE POLICY PART NO

EFFECTIVE

THI THIS ENDORSEMENTIS LISTED THE POLICY IN IT IS DECLARATION DECLARATIONS IN EFFECT ROMTHE TIME COVERAGE F UNDER OTHERWISE EFFECTIVEATE OF THISENDORSEMENT AS SHOWN BELOWAT THE SAME TIME HOUR THE D THI IS
IF OR

THI THIS POLICY COMMENCES

OF THE DAYAS THEPOLICY BECAME

EFFECTIVE DATE

ENDORSEMENT NO

COUNTERSIGNED BY

AUTHORIZED REPRESENTATIVE

DATE

QWEST0001

Case 1:04-cv-00725-RPM

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IT

Page 18 of 35

ROYAL
INSURANCE

THI THIS ENDORSEMENT CHANGETHE CHANGES

PLEASE POLICY

CAREFULLY

DIRECTOR DIRECTORS OUTSIDE

AND

OFFICER OFFICERS

LIABILITY

POLICY

BOARD

EXTENSION

TYPE B

OFTHEINSURED PERSONS SERVING DIRECTOR PERSON AS OFFICER OR

PREMIUM FORTHI CHARGED THISPOLICYIS UNDERSTOOD AGREEDHATTHEINSURANCE IT AND T PROVIDED TO POLICY SUBJECT TERM TERMSAND CONDITIONS EXTENDEDTO INCLUDE IS CONDITION FOR COVERAGE LOSS LOS OUT

IN CONSIDERATION FTHE O

ARISING

ORGANIZATION WHERESUCH INSURED PERSONIS ENTITLEDO INDEMNIFICATION T BYTHEINSURED ORGANIZATION

FOR TRUSTEE ANY ELEEMOSYNARY CORPORATION OR

COVERAGE OFFERED THIS ENDORSEMENT BYTHI DOE DOES NOT EXTEND

TO OR FOR ANY INDIVIDUALWHILE

AFOREMENTIONED CAPACITIE FOR CAPACITIES ELEEMOSYNARY CORPORATIONORGANIZATION OR AS

PENSION ANDOR WELFARE PLANOR FOR CLAIM CLAIMS FOR MEDICAL MALPRACTICE BUT INCLUDING NOT LIMITED

IN SERVINGTHE FOR FIDUCIARY ANY

RENDERING OR FAILURE RENDER ANY MEDICALSERVICEANDOR THE TO FAILURE EFFECTND TO A
MALPRACTICE INSURANCE
IT

TO THE

MAINTAIN MEDICAL

IS COVERAGE TO BE EXCESS OF ANY DIRECTORND OFFICER EXCES A LIABILITY INSURANCEANDOR DIRECTOR AND OFFICER REIMBURSEMENTINSURANCEPROVIDEDORTO OR BY F ANY OF THE AFORESAID ELEEMOSYNARY CORPORATION CORPORATIONS OR

IS

FURTHER THAT THI THIS EXTENSION AGREED OF

ORGANIZATIONS

HEREIN CONTAINED NOTHING SHALL BE

HELDTO VARY ALTER WAIVE

OR

EXTEND ANY OF THE
AS

PROVISIONAGREEMENTS LIMITATIONS PROVISIONS AGREEMENT OR LIMITATION OFTHE ABOVE MENTIONEDPOLICY OTHER THAN
ALT OTHER TERMS TERM CONDITIONS CONDITION AND WARRANTIES WARRANTIE REMAINING

TERM CONDITION TERMSCONDITIONS
ABOVE STATED

UNCHANGED

ATTACHEDTOAND ISSUED ITO

FORMING OFTHE POLICYO PART N

THI THIS ENDORSEMENTIS LISTED THE POLICY IN IT IS DECLARATION DECLARATIONSIN EFFECT ROMTHE TIME COVERAGEUNDER THIS POLICY F THI COMMENCES THE OTHERWISE EFFECTIVE ATE OFTHISENDORSEMENT AS SHOWN BELOWAT THE SAME TIME D THI IS OR HOUR OF THE DAY THE AS BECAME POLICY EFFECTIVE
IF

EFFECTIVE DATE

ENDORSEMENT NO

COUNTERSIGNED BY

AUTHORIZED REPRESENTATIVE

DATE

SUOO1OO

ED 692

QWEST0001

LAD Case 1:04-cv-00725-RPM INSURANCE ROYAL

Document 41-3

Filed 07/01/2005

Page 19 of 35

THI THIS ENDORSEMENT CHANGETHE CHANGES

PLEASE POLICY

READ

IT

CAREFULLY

IN CONSIDERATION THE PREMIUM OF IT CHARGED IS SECTION 2 DEFINITIONS DEFINITION IS DELETED IN ITS

FOLLOWING

HEREBY UNDERSTOOD AND AGREED THAT AND IS REPLACED THE ENTIRETY BY

CLAIM

MEAN MEANS

OR SERVICES RECEIVED BY AN INSURED SERVICE PERSON THAT ANY PERSON OR INTEND INTENDSTO HOLD ANY INSUREDPERSON ENTITY FOR WRONGFUL OR RESPONSIBLE ACT

WRITTEN

OR

ORAL DEMAND

FOR MONEY

ANY ARBITRATION FOR PROCEEDING MONETARYRELIEF

THI THIS ENDORSEMENTEFFECTIVE FORM FORMSPARTOF POFICY NUMBER ISSUED TO

BY ENDORSEMENT NO

QWEST0001

Case 1:04-cv-00725-RPM

ROYAL
INSURANCE

THI THIS ENDORSEMENT CHANGETHE CHANGES

Document 41-3

Filed 07/01/2005
IT

Page 20 of 35

POLICY PLEASE READ

CAREFULLY

MARITAL

ESTATE

EXTENSION

IN CONSIDERATION THE PREMIUM OF IT CHARGED IS HEREBYNDERSTOOD U AND AGREED THATTHE SUBJECT OTHERWISE THE TERMSTHEREOF TO TERM THI THIS POLICY MAY COVER LOSS ARISING LOS FORMANY DAIMS MADE AGAINST DAIM THE UNLAWFUL SUCH STATUSIS DERIVED BY REASON OF SPOUSE WHERE STATU LAW STATUTORYOR COMMON LAWOF AN INSURED ORGANIZATION CLAIMS FOR CLAIM ARISINGOLELYUT OFHIS OR HERSTATUS O S STATU AS THE SPOUSE OF AN INSURED ORGANIZATION SUCH DAIM INCLUDING DAIMS THAT SEEK DAMAGE RECOVERABLEFROM MARITAL COMMUNITYROPERTY P HELD PROPERTY JOINTLY BY THE INSURED ORGANIZATION THE SPOUSE OR AND TRANSFERRED FROMTHE INSURED ORGANIZATIONTHE PROPERTY TO SPOUSE PROVIDED THATTHI HOWEVER THIS EXTENSIONSHALLNOT AFFORD ANY COVERAGEFOR ANY CLAIM FOR ACTUALOR ALLEGED ANY ACT ACTS WRONGFUL OF THE SPOUSE AND THATTHIS POLICYHALLNOT THI S APPLY TO ONLY ACTUALOR ALLEGED WRONGFUL ACT ACTS OF AN INSURED ORGANIZATION TO SUBJECTTHE FULL TERM POLICYTERMSAND CONDITIONS POLICYS

ALLOTHER TERM CONDITION AND WARRANTIES TERMSCONDITIONS WARRANTIE REMAINING UNCHANGED ATTACHEDTO AND ISSUED TO

FORMING OFTHE POLICY PART NO

THI THIS ENDORSEMENTIS LISTEDIN THE POLICY DECLARATION DECLARATIONSIN EFFECT IT IS FROMTHE TIME COVERAGEUNDERTHIS THI POLICY COMMENCES OTHERWISE EFFECTIVE THE DATE OF THIS ENDORSEMENT AS SHOWN BELOW THI IS AT THE SAME TIME OR HOUR OF THE DAYAS THE POLICY BECAME EFFECTIVE
IF

EFFECTIVE DATE

ENDORSEMENT NO

COUNTERSIGNED BY

AUTHORIZEDREPRESENTATIVE

DATE

RSUJ00054

ED

692

QWEST00020

P

Case 1:04-cv-00725-RPM
THI THIS ENDORSEMENT

LIIIJJ
ROYAL
INSURANCE

Document 41-3 Filed 07/01/2005 Page 21 of 35 THE POLICYLEASE READ IT CAREFULLY P CHANGE CHANGES

ENTITY

SECURITIE SECURITIES

CLAIM

COVERAGE

EXTENSION

IN CONSIDERATION OFTHEPREMIUM IT IS CHARGED SECTION1 INSURING INSURING CLAUSE CLAUSE
IS

UNDERSTOOD AGREED AND HEREBY THAT

AMENDED IN PART Y THEADDITIONOF THEFOLLOWING B

THAT THE PERIOD ANY SECURITIES ORGANIZATION IF DURING POLICY SECURITIE FIRST ADE AGAINST M THEINSURED ORGANIZATION WRONGFUL AND IS FOR ACT IN ACCORDANCE WITH SECTION4 CONDITION REPORTED OF THIS POLICYHE INSURER THI T CLAIM
IS

WITH THEINSURED

IOOZOF LOSS WHICH THE INSURED ORGANIZATION LOS IS LEGALLY ORGANIZATION TO PAY IN EXCESS OFTHERETENTIONAPPLICABLETO OBLIGATED EXCES CLAUSE INSURING THE REMAINING TO REMAIN UNINSURED TO THE LIMIT OF UP IN SET LIABILITY FORTH ITEM OFTHEDECLARATIONAGE P
ON

WILLPAY

BEHALFOFTHEINSURED

2

SECTION DEFTNITIIONS 2 DEFTNITIION

OFTHIS POLICY AMENDED THI IS

AS

FOLLOW FOLLOWS

THE FOLLOWING DEFINITION ADDED IS

JUDICIAL PROCEEDING INCLUDING APPEALHEREFROM T AN ANY AGAINST INSURED PERSON IN WHICH SUCH INSURED PERSON MAY BE SUBJECTED BINDING TO OF ADJUDICATION FORDAMAGE OR LIABILITY DAMAGES OTHER SUCH IN RELIEF ROVIDED PROCEEDINGWHOLEOR IN P PART ALLEGE ALLEGESVIOLATION OF THE SECURITIES SECURITIE ACT OF 1933 THE SECURITIES SECURITIE ACT OF 1934 THE SECURITIES SECURITIE LAWS OF ANY STATE OR ANY RULES OR LAW EXCHANGE RULE AND REGULATION REGULATIONS PROMULGATED THEREUNDER II ALLEGES WRONGFUL IN ACT ALLEGE CONNECTION WITH THE PURCHASE SALE OF OR OFFER PURCHASE SELLANY OR TO OR
MEAN MEANS

SECURITIE SECURITIES

CLAIM

CLAIM

WHICH

IS

CIVIL

SECURITIEISSUEDBY SECURITIES THEINSURED

WHETHER SUCHPURCHASE OR ORGANIZATION SALE OFFER OCCUR OCCURS WITHRESPECT THEINSURED ORGANIZATIONS TO ISSUANCE SECURITIES OF SECURITIE ORGANIZATION OR IN THEAFTERMARKET FOR PURPOSES OF COVERAGEUNDER INSURING CLAUSE PURPOSE WHEREVER SEDIN THISPOLICYARE AMENDED U DEFINITION DEFINITIONS THI CLAIM SHALL INCLUDE SECURITIESCLAIM SECURITIE SHALL INCLUDETHE INSURED ORGANIZATION

ONLY THE FOLLOWING

INSURED PERSON

PAGE

OF

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2

Case 1:04-cv-00725-RPM
THI THIS ENDORSEMENT

Document 41-3

Filed 07/01/2005
IT

Page 22 of 35

LJJ
ROYAL
INSURANCE

PLEASE READ CHANGE THE POLICY CHANGES

CAREFULLY

ITEM
AS

RETENTION

REIMBURSEMENT THE DECLARATIONS OF COMPANY DECLARATIONIS

AMENDED

TO

READ

FOLLOW FOLLOWS EACHSECURITIES SECURITIE CLAIM UNDER CLAUSE INSURING

75000

ANDOR

THE EXCLUSIONS FORTH SECTION3 EXCLUSIONS EXCLUSION SET IN EXCLUSION AL DO NOT WITH TO UNDER APPLY RESPECT COVERAGE CLAUSE CLAUSES INSURING

AND
OR

OF THIS POLICY THI

C

SECTION3 EXCLUSIONSOFTHEPOLICY AMENDEDTO ADDTHE FOLLOWING EXCLUSION IS EXCLUSION EXCLUSIONS THE INSURER SHALL NOT BE LIABLEUNDER CLAUSE INSURING
TO MAY ANY PAYMENT FOR LOS LOSS IN CONNECTIONWITH ANY SECURITIES CLAIM MADE AGAINST SECURITIE THE INSURED BASED UPON ARISING OF DIRECTLY OUT ORGANIZATION OR INDIRECTLY RESULTING IN FROM

O CONSEQUENCE F OR IN ANY WAY INVOLVING CLAIM DEMAND OF ACTION CAUSE ANY LEGAL OR QUASILEGAL OR ADMINISTRATIVE PROCEEDING PROCEEDING PENDING ORDERS OR ORDER DECREE DECREES
THE JUDGMENT NTERED GAINST INSUREDPERSONS THE INSURED ORGANIZATION JUDGMENTS E PERSON OR A OR ANY FACTCIRCUMSTANCE SITUATION OR OR ALLEGED UNDERLYING THEREIN OR PRIOR ON TO THE EARLIER THE EFFECTIVE OF ENDORSEMENT THE PENDING OR CLAIM DATE IF ANY SET
OR

FORTHELOW B CLAIM PENDING FEBRUARY 24
DATE
1998

THE INSURER SHALLNOT BE LIABLEUNDER CLAUSE INSURING FOR THAT OFLOSS OTHER THANDEFENSE PART LOS EXPENSE EXPENSES WHICH IS BASED UPON

TO

MAKE ANY PAYMENT

OUT OR INDIRECTLY ARISING OF DIRECTLY RESULTING

FROM IN CONSEQUENCE OR IN ANY WAY INVOLVING ACTUAL OR OF THE THE INSURED ORGANIZATION PROPOSED PAYMENT BY FOR ALLEGEDLY

INADEQUATE OR UNFAIR CONSIDERATION IN

CONNECTION WITH ITS PURCHASE OF

SECURITIEBY SECURITIES THEINSURED ORGANIZATION WITH RESPECT THESTATEMENTSMADE IN THE TO STATEMENT APPLICATIONNLYHEKNOWLEDGE O T POSSESED THE SIGNER THEAPPLICATIONHALL IMPUTEDTHEINSURED OF BY S BE TO FOR ORGANIZATION THE EXISTENCE AND EXTENT OF COVERAGE PURPOSE PURPOSES OF DETERMINING UNDER C CLAUSE INSURING

QWEST00022

Case 1:04-cv-00725-RPM
THI THIS ENDORSEMENT

Document 41-3 Filed 07/01/2005 Page 23 of 35 P CHANGE THE POLICYLEASE READ IT CAREFULLY CHANGES

ROYAL
INSURANCE

SECTION

OF THIS POLICY DELETED IN ITS THI IS

AND WITH ENTIRETY REPLACED THE

FOLLOWING
3

FROM CLAIM IS COVERED WHOLEOR PART IN RESULTING UNDERMORE THAN ONE C RETENTIONSET FORTH ITEM IN INSURINGLAUSETHE APPLICABLE OF THE SHALL APPLIED BE DECLARATION DECLARATIONS TO THAT OFTHELOSS RESULTING LOS SEPARATELY PART FROM THE CLAIM PROVIDED THAT THETOTAL RETENTIONAS FINALLY HOWEVER DETERMINED SHALL NOT EXCEEDTHE LARGEST RETENTION SET FORTH ITEM IN OF THE DECLARATIONS DECLARATION

IF LOSS LOS

PAGE
WITH RESPECT EACH LOSS ON ACCOUNT OF SECURITIES CLAIMS THE RETENTION TO LOS SECURITIE CLAIM TO AND ONLY DEFENSE EXPENSES NOT DAMAGES SETTLEMENTR APPLIE APPLIES EXPENSE DAMAGE O JUDGMENTS OTHER THAT LOS LOSSPROVIDED HOWEVER IF THESECURITIESCLAIM SECURITIE RESOLVED WITH SETTLEMENT OR
IS

AND FULLY FINALLY

WITH PREJUDICE RESPECT THE INSURED PERSONS WITHOUT ANY TO PERSON INSURED PERSONS PERSON BECOMING LEGALLY TO PAY DAMAGE OBLIGATED ANY MONETARYDAMAGES OR

AMOUNT AMOUNTS ON ACCOUNT OF THE SECURITIES CLAIM NO SECURITIE JUDGMENT JUDGMENTS RETENTIONSHALL WITH RESPECT ANY LOSS INCLUDINGEFENSE EXPENSES TO LOS D APPLY EXPENSE
ON

ACCOUNT

OF THE SECURITIESCLAIM SECURITIE

H SHALLBE HELDTO VARY ALTER NOTHINGEREINCONTAINED WAIVE OR EXTEND ANY OF THE TERMS TERM OR LIMITATIONS LIMITATION OF THE BELOW MENTIONED POLICY CONDITION CONDITIONS PROVISION PROVISIONS OTHER AGREEMENT AGREEMENTS THANAS ABOVESTATED

WARRANTIE REMAINING ALLOTHER UNCHANGED TERM CONDITION TERMS CONDITIONSAND WARRANTIES

ATTACHEDTO AND ISSUED TO

NO FORMING OFTHE POLICY PART

THI IT FROMTHETIME COVERAGE UNDERTHISPOLICY COMMENCES THI THISENDORSEMENT LISTED THE POLICY IS IN DECLARATION IS DECLARATIONS IN EFFECT HOUR OFTHE DAY AS THE POLICY THE D THI IS OTHERWISE EFFECTIVEATE OFTHIS ENDORSEMENT AS SHOWNBOW AT THE SAME TIME OR
IF

BECAME EFFECTIVE EFFECTIVE DATE
ENDORSEMENT NO

COUNTERSIGNED BY

AUTHORIZED

REPRESENTATIVE

DATE

QWEST00023

ROYAL

Case 1:04-cv-00725-RPM Document 41-3 Filed 07/01/2005 Page 24 of 35 THI THIS ENDORSEMENT CHANGETHEPOFICY CHANGES PLEASE READ IT

CAREFULLY

COLORADO AMENDATORY CANCELLATION
IN CONSIDERATION FTHE O PREMIUMCHARGED IS IT AND REPLACED THE BY

NONRENEWAL

FOLLOWING

HEREBY UNDERSTOOD AND AGREED THAT THE CANCELLATION LAUSE IS C

DELETED

THI THIS

POLICY MAY

AT ANY TIME TO ROYAL PECIALTY S

BE CANCELLED THE INSURED BY ORGANIZATION TIME BYWRITTEN AT ANY NOTICEOR BYSURRENDER F THIS POLICY O THI INC AT UNDERWRITING THEADDRESSSHOWN IN THEDECLARATIONS ADDRES DECLARATION PAGE

OR NONRENEWED BY ROYAL SPECIALTY INC UNDERWRITINGON BEHALF ORGANIZATION MAILING THE LNSURED ORGANIZATION OR BY TO CERTIFIEDOTHER OR BY REGISTERED FIRST LASSMAIL TO THE ADDRESS SHOWN IN THIS CLAS C ADDRES THI POLICY RITTEN W NOTICESTATING WHENNOT LESS THANSIXTY LES 60 DAYS DAY THEREAFTERCANCELLATION NONRENEWAL WILL BECOME THE EFFECTIVE THE MAILING SUCH NOTICE WILLBE OF SUFFICIENT O PROOFFNOTICE AND THIS POLICY TERMINATE THEDATE THI WILL AT AND HOUR SPECIFIED THE NOTICE IN IF

THE POLICY MAY ALSOBE CANCELLED ANY TIME AT OF THE INSURER BY DELIVERYTHE INSURED TO

THI THIS POLICY CANCELED BY THE INSURED IS

PROPORTION OF THE PREMIUM HEREON
IF

ORGANIZATION THE

INSURER WILL RETAIN

THE

SHORT CUSTOMARY

RATE

CANCELLATIONUTSUCH PAYMENT WILL BE MADE AS SOON B AS PERIOD LIMITATION OF TO THE RELATING GIVING NOTICEIS PROHIBITED MADE VOID OF OR BYANY LAW CONTROLLING THE CONSTRUCTION THEREOFUCH PERIODWILL BE DEEMED TO BE S AMENDED SO AS TO BE EQUALTO THE MINIMUM OF PERMITTEDBY SUCH LAW PERIOD LIMITATION
IF THE INSUREDORGANIZATION FAIL FAILSTO 10 DAYS DAY WRITTEN NOTICE

THI THIS POLICY CANCELED BY THE IS INSURER INSURERWILL RETAIN THE PAYMENT TENDEROF ANY UNEARNED PREMIUM BYTHE INSURER OR IS

OF PROPORTION THE PREMIUM HEREON CONDITION PRECEDENTO THE EFFECTIVENESS T EFFECTIVENESF O PRACTICABLE AFTER THE CANLLATION DATE IS EFFECTIVEIF THE NOT

THE PRO RATA

PAY ANY PREMIUM WHEN DUE THE INSURER MAY CANCEL THE

POLICY UPON

TEN

THE INSURER SHALL NOT BE REQUIRED RENEW THIS TO THI POLICY UPON ITSEXPIRATION

ENDORSEMENT
RSUIT00041 1095

NUMBER

QWEST00024

Case 1:04-cv-00725-RPM ROYAL
INSURANCE

Document 41-3

Filed 07/01/2005
IT

Page 25 of 35

THI THIS ENDORSEMENT CHANGETHE CHANGES POLICY PLEASE READ

CAREFULLY

COLORADO AMENDATORY
TMCLAIM INFORMATION REQUEST

IT CHARGED IS HEREBYNDERSTOOD U AND AGREED THATTHE LNSUREDS LNSURED WILL BE ABLE TO OBTAINREASONABLE INFORMATION ABOUT CLOSED PAIDCLAIMS OR OCCURRENCES WHICH OR CLAIM OCCURRENCE IN MAY RESULT CLAIM IN THE EVENT OFPOLICY CANCELLATION NONRENEWAL OR

IN CONSIDERATION THE OF PREMIUM

NOTHING HEREIN CONTAINED SHALLBE HELDTO WAIVE OR EXTEND ANY OF THE TERMS VARY ALTER TERM CONDITIONS CONDITION PROVISION PROVISIONS AGREEMENTOR LIMITATION AGREEMENTS LIMITATIONS THE BELOW OF MENTIONEDPOLICY OTHER THANAS ABOVE STATED

ALLOTHERTERMS OTHERTERM CONDITION AND WARRANTIES CONDITIONS WARRANTIE REMAINING UNCHANGED ATTACHED AND FORMING OFTHE TO PART N POLICYO ISSUED TO

THI THIS ENDORSEMENTIS LISTED THE POLICY IN IT IS DECLARATION DECLARATIONSIN EFFECT ROMTHE TIME COVERAGEUNDER THIS F THI POLICY COMMENCES THE OTHERWISE EFFECTIVE DATE OFTHIS ENDORSEMENTIS AS SHOWNBELOW THI AT THE SAME TIME OR HOUROF THE DAYAS THE BECAME EFFECTIVE POLICY
IF

EFFECTIVE DATE

ENDORSEMENTNO

10

COUNTERSIGNECI BY

AUTHORIZEDREPRESENTATIVE

DATE

RSU1T00042 1095

QWEST00025

Case 1:04-cv-00725-RPM

Document 41-3

Filed 07/01/2005
IT

Page 26 of 35

ROYAL
INSURANCE

THI THIS ENDORSEMENT CHANGETHE CHANGES POLICY PLEASE READ

CAREFULLY

COLORADO DISCLOSURE FORM

IMSMADE

POLICY

IMPORTANT

NOTICE

TO POLICY

HOLDER

YOUR POLICY IT MERELY POLICY FORM READ YOUR RIGHT DUTIES RIGHTS DUTIE AND WHAT IS AND IS NOT COVERED ONLY DETERMINE THE SCOPE OF YOUR INSURANCE PROTECTION

THI THIS

DISCLOSURE FORM IS NOT FEATURE FEATURES OF OUR CLAIMSMADE

DESCRIBE DESCRIBES SOME OF THE MAJOR POLICY CAREFULLY TO DETERMINE THE PROVISION PROVISIONS OF YOUR POLICY

YOUR POLICY CLAIMSMADE IS IT APPLIE ONLY CLAIMS MADE POLICY APPLIES TO CLAIM AGAINST THE INCEPTION YOU AFTER DATE AND BEFORE THE END OF THE POLICY PERIOD INVOLVING ACT WRONGFUL THATOCCURS AFTER POLICY OCCUR THE RETROACTIVE DATE UPON TERMINATION OF YOURPOLICY EXTENDED REPORTING AN PERIOD MAY BE AVAILABLE

CCJRRENCE
TRE
IS NO

VS

CLAIMSMADE

DIFFERENCE THE KINDS OF INJURY DAMAGE IN KIND AND COVERED BY EITHER AN OCCURRENCE POLICY OR CLAIM CLAIMS CIAIM CIAIMS FOR DAMAGES POLICY DAMAGE MAY BE ASSIGNED DIFFERENT TO POLICY PERIOD PERIODS HOWEVER DEPENDING WHICH ON HAVE PURCHASED POLICY YOU
MADE IN AN OCCURRENCE

PICY PERIOD NO

POLICYCOVERAGEIS PROVIDEDORLIABILITY F BECAUSE

OF

MATTER WHEN THECLAIM IS MADE

ACT WRONGFUL

THAT

OCCUR OCCURS

DURINGTHE

WRONGFULCT IF THE CLAIM FOR A FOR DAMAGES DAMAGE BY AN INJUREDARTY BUT IT DOES NOT HAVE TO BE IN P DOE WRITINGUNDER MOST CIRCUMSTANCES CIRCUMSTANCE CLAIM IS CONSIDERED MADE WHEN IT IS RECEIVEDAND RECORDED YOU OR BYUS BUT BY SOMETIME SOMETIMES CLAIM MAY BE DEEMED MADE AT AN EARLIER TIME THI THIS CAN HAPPEN WHEN ANOTHER CLAIM FORTHE SAME INJURY DAMAGE OR HAS ALREADY BEEN MADE OR WHEN THE CLAIM IS RECEIVEDAND RECORDED AN DURING EXTENDED REPORTING PERIOD PRINCIPAL BENEFITS BENEFIT
THI THIS POLICY PROVIDE COVERAGEFOR PROVIDES DIRECTOR AND DIRECTORS POLICY THE PRINCIPAL BENEFIT BENEFITSAND COVERAGES COVERAGE ARE AND CONSULT ABOUT YOURAGENT OFFICER LIABILITY TO THE MAXIMUM OFFICERS UP

IN YOUR CLAIMSMADE DAMAGE IS DAMAGES FIRST ADE M

POLICY FOR LIABILITY COVERAGEIS PROVIDED BECAUSE OF DURING POLICYPERIOD THE CLAIM MUST BE THE DEMAND

DOLLAR LIMIT SPECIFIED IN

THE

IN EXPLAINED DETAILIN YOUR CLAIMSMADE ANY QUESTIONS MIGHT QUESTION HAVE YOU

POLICYPLEASE

READ

IT

CAREFULLY

EXCEPTION EXCEPTIONS

REDUCTION

AND LIMITATIONS LIMITATION

YOUR CLAIMSMADE POLICY CONTAIN CERTAIN CONTAINS
CONSULT YOUR AGENT ABOUT

EXCEPTION REDUCTIONSAND LIMITATIONS PLEASE READ THEM EXCEPTIONS REDUCTION QUESTION ANY QUESTIONS MIGHT HAVE YOU

AND CAREFULLY

SURROOO

1095

PAGE

OF

QWEST00026

Case 1:04-cv-00725-RPM Document 41-3 Filed 07/01/2005 Page 27 of 35 THI THIS ENDORSEMENT CHANGETHE CHANGES POLICY PLEASE READ IT CAREFULLY ROYAL
INSURANCE

RENEWAL RENEWALS

TAIL TAILS AND

EXTENDED
SOME

REPORTING

PERIOD PERIODS

YOUR CLAIMSMADE POLICY HAS OCCURRENCE WITH COVERAGE OF OCCURRENCES BELOW

FEATURE RELATING RENEWAL EXTENDED FEATURES UNIQUE TO REPORTING PERIOD PERIODS AND LONG PERIOD OF PERIODS EXPOSURE THESE SPECIALCLAIMSMADE PROVISIONARE DESCRIBED PROVISIONS

SPECIAL

CLAIMSMADE

PROVISION PROVISIONS

TWO CONCEPTS TO CONCEPTRELATING CONTINUITY COVERAGE UNDER THE CLAIMSMADE OF UNDERSTANDTHESE INVOLVE THE RETROACTIVE DATE AND THE EXTENDED

POLICY ARE ESPECIALLY IMPORTANT TO

REPORTING PERIOD

RETROACTIVE DATE
DJHEN YOU HAVE RETROACTIVE DATE ENTERED ON THE DECLARATIONS DECLARATION PAGE THERE IS NO COVERAGE FOR THATOCCURRED BEFORE THE RETROACTIVE DATE EVEN IF THE CLAIM IS FIRST ADE DURING POLICY M THE PERIOD
IF

WRONGFUL CT A

THERE NO RETROACTIVE IS DATE BLOCKENTERED ON THEDECLARATIONS DECLARATION PAGE THE POLICY WILL RESPOND TO CLAIM ONLY CLAIMSFIRST RVDE DURING POLICY THE FOR COVERED WRONGFUL NO MATTER WHEN THE PERIOD ACT ACT WRONGFUL OCCURRED BUT IF RIREVIOU RIREVIOUS OCCURRENCE TYPEINSURANCE ALSO APPLIES THE APPLIE TO WRONGFUL YOUR CLAIMSMADE ACT W POLICY ILL BE EXCESS EXCES THATIS IT WILL APPLY AFTERTHAT ONLY PREVIOUINSURANCE USED PREVIOUS IS
UP CANNOT BE MOVED AHEAD IN TIME EXCEPT UNDER CERTAIN CIRCUMSTANCES YOU CIRCUMSTANCE EG SUBSTANTIAL IN CHANGE YOUR OPERATIONS OPERATIONTH