(4) This endorsement is subject to all exclusions in the policy, including but not limited to Exclusion K. Expected or Intended Injury.

(5) Any award of "punitive damages" and compensatory damages arising out of the same judgment will be added together and the sum shall be used to determine whether or not the "retained limit" has been exhausted.

The following DEFINITIONS are added to the policy:

"Punitive damages", which may also be called exemplary damages, means damages awarded by a court above and beyond the requirements for compensating a plaintiff for "bodily injury", "property damage" or "personal and advertising injury" and intended to reform or deter the defendant and similar persons from pursuing a course of action such as that which damaged the plaintiff. "Punitive damages" does not include civil or criminal fines or penalties imposed by any government authority.

"Substantial relationship" means a relationship with one or more of the following indicia: the insured's state of incorporation or principal place of business; the place where the claim is made or the court action seeking damages is brought, or where the "bodily injury", "property damage", or "personal and advertising injury" occurred; the insurance company's state of domicile, incorporation, or principal place of business; or the state where the policy was issued.

All other terms and conditions of the policy remain unchanged.