Sony Corporation of America – 2014Property summary

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Sony Corporation of America

PropertyCoverage Summary

Named Insured:

Sony Corporation of America, Sony Electronics Inc., Sony Latin America Inc., SEG Travel LLC, Sony Online Entertainment LLC, Sony Network Entertainment International LLC., Sony Music Entertainment, Sony DADC US Inc., Sony/ ATV Music Publishing LLC, Sony Computer Entertainment America LLC, Sony Music Holdings, Inc., Famous Music LLC, Extreme Music, Game Entertainment Subsidiary LLC, Sony Biotechnology Inc. Micronics Inc., Sony Americas Holding Inc., Orchard Media, Inc., Gaikai Inc., Sony Pictures Entertainment Inc. and all affiliated, subsidiary, associated, and allied companies, operations, divisions, firms, persons and/or corporations and/ or limited liability companies and the insured’s interest in partnerships and joint ventures, entities and enterprises as now exist or may hereafter be constituted or acquired and any party in interest which the insured is responsible to insure.

Policy Term: April 1, 2014- April 1, 2015

Coverage Summary:

Real and Personal Property, Business Interruption (Gross Earnings, 365 days Extended Period of Indemnity, including ordinary payroll), Contingent Time Element, Extra Expense, Rental Value, Royalties, Service Interruption, Ingress/Egress, Civil/ Military Authority, Valuable Papers and Records, Accounts Receivable, Expediting Expenses, Transit, Leasehold Interest, Debris Removal, Demolition & Increased Cost of Construction, Consequential Loss, Professional Fees, and as more fully described in the policy form

Limits:$1,000,000,000 per occurrenceexcept;

100% Ground Up Sub-Limits per occurrence (applicable to all loss or damage)

Boiler & Machinery, Per Accident$100,000,000

Ammonia Contamination$10,000,000

Consequential Damage$10,000,000

Expediting Expense$10,000,000

Hazardous Substances$10,000,000

Water Damage$10,000,000

Accounts Receivable$70,000,000

Builder’s Risk$50,000,000

Business InterruptionIncluded

Certified Terrorism of Insurance$400,000,000

Civil Authority – not to exceed 60 days Included

Ingress/Egress – not to exceed 60 daysIncluded

Coinsurance Deficiency$25,000,000

Contingent Time Element as respects to Sony

Pictures Entertainment Inc. any one occurrence

not to exceed:$75,000,000

International Suppliers and Customers$50,000,000

Contingent Time Element as respects to all other

Entities any one loss or occurrence not exceed:$60,000,000

Contingent Time Element applying to

Hon Hai/Foxconn/Wistron direct suppliers

to a Sony Group Company$60,000,000

Contingent Time Element - losses

Caused by Earthquake and Flood$40,000,000

Contingent Time Element – 2nd Tier

Suppliers & Customers only$20,000,000

Contingent Time Element-Thailand Flood &

Japan Tsunami are excluded

Currency Devaluation $25,000,000

Debris Removal Included

Defense Costs$5,000,000 except $10,000,000 for SPE

Deferred PaymentsIncluded

Demolition & Increased Cost of ConstructionIncluded

Difference in Conditions for Coverage Included in MUL Limit

EDP MediaIncluded

Errors & Omissions$50,000,000

Expediting Expense $70,000,000

Extra Expense$70,000,000

Extended Period of Indemnity365 days

Fine ArtsIncluded

Jewelry, Precious and Semi-Precious Stones,$10,000,000

Fur, Fur Trimmed Garments, watches, pearls,

gold,silver, platinum, other precious metals and

alloys, coins, bullion, notes, securities, stamps,

letters ofcredit, tickets, accounts, bills, deeds

& evidence of debt

Leasehold InterestIncluded

Logistics Extra Cost$5,000,000

(not to exceed 200% of normal cost, not to exceed 180 days)

Miscellaneous Unnamed Locations$50,000,000

Newly Acquired Locations$50,000,000

Pollution and Contamination Clean-Up$5,000,000

Property in transit (per conveyance); $15,000,000

Each railroad car or trailer shall be considered

a separate conveyance

Rental ValueIncluded

Research and Development$70,000,000

Claims Preparation Costs$70,000,000

Crisis Management (via endorsement)$500,000

Risk Improvement Coverage (per occ./ann. agg.)10% of PD loss not to exceed$1,000,000

Royalties$70,000,000

Service Interruption (Time Element)$70,000,000

Soft Cost$25,000,000

Tax LiabilityIncluded

Tax Treatment of Profits$25,000,000

Tenants & Neighbors LiabilityIncluded

Valuable Papers & Records$70,000,000

Cyber (via endorsement) including Defense Costs$5,000,000

Tsunami at locations in Japan for SPE only$10,000,000

Scenery, costumes, theatrical props, property

Of others and/or misc. equipment used in connection

With a film production while off-site locations$50,000,000

And as more fully described in the policy form

Earthquake:

The Policy Aggregate Limit of Liability for All Loss or Damage by Earthquake Shall Not Exceed $250,000,000 in any one policy year except:

The Policy aggregate limit of liability for all loss or damage by Earthquake – California shall not exceed $150,000,000 in any one occurrence

The peril of EQ in Japan is excluded for any and all coverages.

Flood:

The Policy Aggregate Limit of Liability For All Loss or Damage by Flood Shall Not Exceed $250,000,000 in any one policy year except;

The Policy Aggregate Limit of Liability For All Loss Or Damage By Flood in The Netherlands Shall Not Exceed $5,000,000 in any one policy year.

The German Storm Surge Shall Not Exceed $5,000,000 in any one year.

Deductibles

All losses, damages or expenses arising out of any one occurrence shall be adjusted as one loss, and from the amount of such adjusted loss shall be deducted $100,000 except:

$50,000 for Sony Pictures Entertainment locations

$100,000 per occurrence as respects Scenery, costumes, theatrical props and miscellaneous equipment (cameras, camera equipment, sound and lighting equipment, portable electrical equipment, mechanical effects equipment, grip equipment and mobile equipment) owned by the Insured or which is property of others used by the Insured and for which the Insured is legally liable, while such property is used by the Insured in connection with a production;

$25,000 per occurrence as respects Property in Transit;

5% of the actual value per unit of insurance at the time when such loss occurs at locations within the State of California for the peril of Earthquake subject to a minimum of $100,000 per occurrence.

$100,000 as respects loss or damage arising out of an "accident" except $5,000 for Sony Pictures Entertainment locations in the USA and $25,000 as respects Sony Pictures Entertainment locations outside the USA.

$10,000 as respects Film Print Coverage except $25,000 as respects Movie Houses and/or Drive Ins.

For Lexington only the following deductible applies for High Hazard Flood:

$250,000 per occurrence with respects to all locations except Sony Pictures Entrainment locations wholly or partially within Special Flood Hazard Areas (SFHA), areas of 100 year flooding, as defined by the Federal Emergency Management Agency.

As respects to Sony Pictures Entertainment Locations wholly or partially within Special Flood Hazard Areas (SFHA), areas of 100 year flooding, as defined by the Federal Emergency Management Agency, the maximum available limits through the National Flood Insurance Program on Real and Personal Property and 5 days waiting period for Time Element.

In any occurrence where loss or damage is caused by more than one peril insured against under this policy, the Insured shall have the right to separate the loss amount by peril for the purposes of application of the deductible(s) specified in this section, notwithstanding the above reference to two or more deductibles and the policy limits.

The deductible amounts specified above shall not apply to general average contributions, salvage charges and sue and labor expenses.

And as more fully described in the policy form.

Conditions:

Coinsurance Waiver

Sue and Labor Clause

Underlying and Excess Insurance Clause

Salvage and Recoveries Clause

Full Step-Down/Drop-Down wording to apply

And as more fully described in the policy form.

Key Exclusions

  1. Land; however, this exclusion shall not apply to the cost of reclaiming,

restoring or repairing land improvements. Land improvements are defined as any alteration to the natural condition of the land by grading, landscaping, earthen dikes or dams, and additions to land such as pavements, roadways, or similar works.

B.Water, except water which is normally contained within any type of tank, piping system or other process equipment;

C.Money and securities, currency, gold bullion; however precious metals used in manufacturing or incorporated into finished products shall not be excluded

D.Growing crops, standing timber, and animals except for research;

E.Watercraft, aircraft, motor vehicles licensed for highway use when not on the Insured's premises, but this exclusion shall not apply to contractor's equipment;

F.Waterborne shipments via the Panama Canal, and to and from Puerto Rico, the Virgin Islands, Hawaii, and Alaska;

  1. Export shipments after loading on board an overseas vessel, watercraft, or aircraft or after Ocean Marine insurance attaches, whichever occurs first; and import shipments prior to discharge from an overseas vessel, watercraft, or aircraft, or until Ocean Marine insurance terminates, whichever occurs last. This exclusion shall not apply to: ferry shipments transporting over-the-road conveyances to, from, and between countries in Continental Europe, the United Kingdom, and Ireland; air and waterborne shipments within a single country; or air and inland waterway shipments to, from, and between countries in Continental Europe.
  1. Furs;
  1. Property sold on installment, conditional sale, trust agreement or other deferred payment plan, after delivery to customers, whether or not the insured retains title to such property
  1. Docks, piers, wharves, underground mines, caverns, tunnels (except tunnels connecting insured location(s), railroad rolling stock, offshore property
  1. Bridges, roadways, dams, dikes, walks, patios and other paved surfaces (except when connecting insured location(s) and except as provided in respect of land improvements
  1. Cyber Risk

Notice of Claim:

As soon as practicable after any loss or damage occurring under this policy is known to the Insured's Risk Management Department, the Insured shall report such loss or damage to Marsh USA, Inc. of New York, for transmission to insurance company. Any delay by the Insured in providing notice shall not affect the Insured's right to coverage under this policy, except if and to the extent that the Company proves that it actually and substantially was prejudiced by any unreasonable delay in notice.

Notice should be sent to:

Attn: Ed Hiroshima

Marsh Property / Casualty– Claims Department

1166 Avenue of the Americas

New York, NY 10036

Attn: Julie L. DeSantis, ARM

Vice President, Risk Management

Sony Corporation of America

550 Madison Avenue, 27th Floor

New York, NY10022

Territory:

Worldwide excluding Afghanistan, Angola, Congo (The Democratic Republic of, or formally known as Zaire), Cuba, Haiti, Iran, Iraq, Kampuchea (Cambodia), Laos, Lebanon, Liberia, Libya, North Korea, Sudan, and any other country where trade relations are unlawful as determined by the Government of the United States.

This summary does not take place of or alter any of the conditions, exclusions and other terms of the policy herein summarized. It is merely a short descriptive guide to the policy for convenient reference. The policy should be consulted for any questions on coverage claims.

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