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does not apply if such failure has caused or is reasonably expected to cause <br />"bodily injury" or physical damage to tangible property. <br />(ii) Copyright, patent, trade secret or trademark infringements; <br />(iii) Transformation of a chemical nature, deterioration or decomposition of "your <br />product", except if it is caused by: <br />i. An error in manufacturing, design, processing or transportation of "your <br />product"; or <br />ii. "Product tampering" <br />(iv) Expiration of the designated shelf life of "your product". <br />(b) A "product withdrawal", initiated because of a "defect" in "your product" known to exist <br />by the named insured or the named insured's "executive officers", prior to the <br />inception date of this Coverage Form or prior to the time "your product" leaves your <br />control or possession. <br />(c) Recall of any specific products for which "bodily injury" or "property damage" is <br />excluded under SECTION II —LIABILITY by endorsement. <br />(d) Recall of "your products" which have been banned from the market by an authorized <br />government entity prior to the policy period. <br />(e) The defense of a claim or "suit" against you for "product withdrawal expenses". <br />c. Definitions <br />(1) "Covered recall" means: <br />(a) A product recall made necessary because you determine that the product recall is <br />necessary; or <br />(b) An authorized government entity has ordered you to conduct a product recall. <br />(2) "Product recall expense" means necessary and reasonable expenses incurred by "you" for: <br />(a) Costs of notification of a "covered recall"; <br />(b) Costs of stationery, envelopes, production of announcements and postage or facsimiles; <br />(c) Costs of overtime paid to you regular non -salaried employees and costs incurred by your <br />employees, including costs of transportation and accommodations; <br />(d) Costs of computer time; <br />(e) Costs of hiring independent contractors and other temporary employees; <br />(f) Costs of transportation, shipping or packaging for the return of "your products" affected <br />by a recall; <br />(g) Costs of warehouse or storage space; or <br />(h) Costs of proper disposal of "your products", or products that contain "your products", that <br />can not be reused, not exceeding your purchase price of your cost to produce the <br />products; <br />B. The following is added to Section II — Liability, Paragraph C. Who Is An Insured: <br />1. Newly Acquired Or Formed Organization <br />The following is added to Paragraph C. Who Is An Insured in Section II — Liability: <br />Any organization you newly acquire or form, other than a partnership, joint venture, or limited liability <br />company and over which you maintain ownership or majority interest, will qualify as a Named Insured <br />if there is no other similar insurance available to that organization. However: <br />a. Coverage under this provision is afforded only until the 90th day after you acquire or form the <br />organization or the end of the policy period, whichever is earlier; <br />b. Paragraph A.1. Business Liability does not apply to: <br />(1) "Bodily injury" or "property damage" that occurred before you acquired or formed the <br />organization; and <br />26-0115 10 10 Includes Copyrighted Material of the Insurance Services Office, Inc. Page 17 of 22 <br />Used with permission <br />ATTY/AGR.2025.234/Pacific Dining CA1, LLC (881 Middlefield Rd) (Page 36 of 47) <br />