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(3) The "network security or data breach event" is first discovered in accordance with Paragraph c. <br />below during the policy period or any Extended Reporting Period we provide under 4. Extended <br />Reporting Periods; and <br />(4) Written notice is received by us of the "network security or data breach event" within sixty (60) days <br />of its first discovery or before the end of any. Extended Reporting. Period we provide under 4. <br />Extended Reporting Periods, whichever is earlier. <br />c. First Discovery and Related Events or Acts <br />(1) First Discovery <br />A "network security or data breach event" will .be deemed to have been discovered at the earliest of <br />the following times: <br />(a) When such "network security or data breach event" is discovered and recorded by any insured, <br />or.by us, whichever comes first; or <br />(b) When the insured becomes aware of an act, error or omission that may subsequently result in a <br />"network security or data breach event", and you give written notice to us, as described in <br />Section IV — Conditions, of such circumstances as soon as practicable but no later than: <br />(i) Sixty (60) days after -becoming aware; or <br />(ii) The end of any applicable Extended Reporting Period; <br />whichever is earlier. <br />(2) Related Events <br />All related "network security or data breach events" will be considered one event and will be <br />considered first discovered when the first of such related events is discovered. <br />Related "network security'or data breach events" include all "network security or data breach events" <br />that are logically or causally connected by a common nexus of facts, circumstances, situations, <br />events, transactions, causes or acts. <br />2. Coverage F — Privacy Event Mitigation Expense <br />Insuring Agreement <br />a. We will pay "privacy event mitigation expenses" incurred by the insured, provided such expenses arise <br />directly out of a "privacy event" for which coverage is not otherwise excluded. But the amount we will pay <br />is limited as described below in Section C — Limits Of Insurance; <br />No other obligation or liability to pay sums or perform acts or services is covered. <br />b. This insurance applies to "privacy event mitigation expenses" only if: <br />(1) The "privacy event" takes place in the "coverage territory"; and <br />(2) The "privacy event" did not result from an act, error or omission that occurred before the Privacy <br />Event Mitigation Expense Retroactive Date shown in the schedule or after the end of the policy <br />period; and <br />(3) The "privacy event" is first discovered in accordance with Paragraph c. below during the policy <br />period or any Extended Reporting Period we provide under 4. Extended Reporting Periods; and <br />(4) Written notice is received by us of the "privacy event" within sixty (60) days of its first discovery <br />or before the end of any Extended Reporting Period we provide under 4. Extended Reporting <br />Periods, whichever is earlier. <br />C. First Discovery and Related Events or Acts <br />(1) First Discovery <br />A "privacy event" will be deemed to have been discovered at the earliest of the following times: <br />(a) When such "privacy event" is discovered and recorded by any insured, or by us, whichever <br />comes first; or <br />(b) When you become aware of an act, error or omission that may subsequently result in a "privacy <br />event", and you give written notice to us, as described in Section IV — Conditions, of such <br />circumstances as soon as practicable but no later than: <br />(i) .Sixty (60) days after becoming aware; or <br />(ii) The end of any applicable Extended Reporting Period; <br />whichever is earlier. <br />GL 4000 10 16 McNeil & Co., 2016 P�ge� of 9 <br />Includes copyrighted material of Insurance Services Office, Inc. with its permission. UU <br />