these General Insurance Terms and Conditions for citizen property and liability insurance VPPMO 1/14 Common provisions Article 1 Introduction

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1 General Insurance Terms and Conditions for citizen property and liability insurance VPPMO 1/14 Common provisions Article 1 Introduction 1. The insurance is governed by Act No. 89/2012 Coll., the Civil Code (hereinafter referred to as the Act ). Pursuant to the Act, Allianz pojišťovna, a.s. (hereinafter referred to as the Insurer ) issues these General Insurance Terms and Conditions for citizen property and liability insurance VPPMO 1/14 (hereinafter referred to as VPP ). 2. VPP, the Special insurance Terms and Conditions (hereinafter referred to as ZPP ), Supplementary Insurance Terms and Conditions (hereinafter referred to as DPP ), General Terms and Conditions of Home Assistance service (hereinafter referred to as VPHA ) and other additional provisions, if any, related to this insurance, such as special contractual arrangements or clauses, form an integral part of this insurance policy (hereinafter referred to as the Insurance Policy ). 3. In cases permitted by the Act, if the Insurance Policy contains arrangements different from certain provisions of the Act, arrangements stipulated in the Insurance Policy shall apply. If none, provisions of the Act shall apply. 4. These insurance terms and conditions shall apply throughout the term of the insurance agreed in the Insurance Policy. The policyholder must be provably informed about the insurance terms and conditions prior to concluding the Insurance Policy and they cannot be amended without his or her consent. 5. Pursuant to the Act, this insurance is insurance against loss, the purpose of which is to settle a loss of property incurred as a result of an insured event, all to the extent agreed. 6. Under liability insurance the insured shall have the right to have the insurer compensate the injured party in an insured event for loss or harm to the extent and in the amount stipulated by the Act or the Insurance Policy, if the insured became obliged to such compensation. 7. According to the present insurance terms and conditions, insurance can be concluded only if the policyholder and/or the insured have insurable interest therein. Insurable interest is a legitimate need of protection against consequences of an insured event. The policyholder has insurable interest in own property. Article 2 Governing law, jurisdiction of courts The Insurance Policy including these insurance terms and conditions is concluded in the Czech language. The Insurance Policy and legal relations arising out of the Insurance Policy shall be governed by laws of the Czech Republic and court of the Czech Republic shall have jurisdiction over disputes arising out of the Insurance Policy. The same applies to insured risks abroad. Article 3 Beneficiary The insured is the beneficiary. Article 4 Time and territorial validity of the insurance 1. The fact that the insured event occurred during the insurance term is a prerequisite for establishing the right to receive the indemnity, unless the Insurance Policy stipulates otherwise. 2. The insurance applies to insured events occurred in the territory of the Czech Republic, unless the insurance terms and conditions or the Insurance Policy stipulates otherwise. Article 5 Insurance term, insurance period

2 1. The insurance is concluded for an undefined term, unless agreed otherwise. 2. The insurance period for insurance policies concluded for an undefined term is 1 year, unless agreed otherwise. Article 6 Establishment of the insurance 1. The insurance is established: a) as of the starting date of the insurance agreed in the Insurance Policy; if not agreed, b) as of the day following (after 00:00) the date of full payment of the premium; if the first premium was not paid in full within 2 months from concluding the Insurance Policy the insurer shall be entitled to withdraw from the Insurance Policy. The insurer may only exercise this right before full payment of the first premium. By withdrawal the Insurance Policy shall be rendered null and void. 2. The Insurance Policy must be concluded in writing (in printed form), otherwise it is invalid. The same applies to amendments to the Insurance Policy. 3. If based on the insurer s proposal to conclude the Insurance Policy the premium stated in the offer was paid in full and in time as stipulated by the insurer (within 1 month from delivery of the offer to the other party, if no term is given) the Insurance Policy was concluded as of the date of payment of the premium. 4. In the event of concluding the Insurance Policy by distance selling, the following is agreed: a) the insurance is established as of the date and time stated in the insurer s offer to conclude the Insurance Policy, b) establishment of the insurance is conditioned by payment of the premium in the amount and time stated in the insurer s offer to conclude the Insurance Policy, c) the Insurance Policy is concluded as of the moment of payment of the premium in accordance with paragraph b) of this Article. Article 7 Termination of the insurance 1. If the insurance is concluded for an undefined term, it shall be terminated by termination notice served by the insurer or the policyholder by the end of an insurance period; however, if the termination notice is delivered to the other party later than 6 weeks before the expiration date of the insurance period, the insurance shall be terminated as of the end of the following insurance period. 2. If the insurance is concluded for a fixed term, it shall be terminated by expiration of the insurance term. 3. If the insurer reminds the policyholder to pay the premium and includes a notice that the insurance shall expire if the premium fails to be paid within the additional time of at least 1 month from the date of delivery of the reminder that must be given, the insurance shall expire by expiration of said time. The same applies to unpaid premium instalments or parts thereof. 4. The insurer and the policyholder may agree on expiration of the insurance. To be valid, an agreement on expiration of the insurance must contain a settlement arrangement of the parties. The agreement must be made in writing and must contain the insurance expiration date, otherwise it shall be invalid. 5. The insurer and the policyholder may terminate the insurance in writing a) with an 8 day termination notice period (the period starts running on the date of delivery of the notice) within 2 months from the date of concluding the policy, or b) with a 1 month termination notice period (the period starts running on the date of delivery of the notice) within 3 months of the date of provable delivery of an insurance claim. 6. The insurer or the policyholder may terminate an amendment to the Insurance Policy in writing within 2 months from the date of concluding the amendment. An eight day termination notice period starts running on the date of delivery of the termination notice. The amendment shall expire by expiration of said notice period. 7. In case the policyholder or the insured violated the true statement obligation stipulated in Article 11, paragraph 1 hereof by wilful misconduct or negligence, the insurer shall be entitled to withdraw from the Insurance Policy or an amendment to the Insurance Policy if proving that it would not have concluded the policy with true and complete answers to the questions provided.

3 8. The policyholder shall be entitled to withdraw from the policy if at the time of concluding the policy the insurer had to be aware of mismatches between the offered insurance and the prospect s requirements and failed to inform the prospect thereof. In this regard, the circumstances and method of concluding the Insurance Policy shall be taken into consideration, as well as whether a broker independent of the insurer is available to the other party when concluding the policy. 9. The right to withdraw from the policy shall expire if not exercised by the party within 2 months from the date when it discovered or had to discover a violation of the obligation stated in paragraph 7 and 8 of this Article. 10. By withdrawal the Insurance Policy shall be rendered null and void. Without undue delay and not later than within 30 days from the date of withdrawal from the Insurance Policy the insurer shall be obliged to refund the premium paid, minus any performance rendered under the insurance. If the insurer withdraws from the policy, he shall also be entitled to set off the cost related to establishment and maintenance of the insurance for each commenced insurance period. The policyholder or the insured other than the policyholder, or a third party, shall be obliged to return any amount of paid indemnity exceeding the amount of paid premium to the insurer within the same time. 11. The insurance shall expire by death of the insured natural person or the date of dissolution of the insured legal entity without a legal successor. 12. The insurance shall expire by termination of the insurable interest in existence of the insurance; however, the insurer shall be entitled to receive premiums until learning about the end of insurable interest. 13. The insurance shall expire by elimination of the insured risk or the date of delivery of a notice of refused indemnity according to Article 16, paragraph 6 of these insurance terms and conditions. 14. Unless explicitly agreed that the insurance shall not expire by changed ownership or co ownership of the insured property, the insurance shall expire as of the date of informing the insurer of such a change. 15. If the title to a building entered in a public register is transferred, it shall be acquired by making the entry in the register. Contrary to paragraph 14 of this Article, the insurance shall expire as of the date when the decision to permit entry of title of the new owner or co owner into the public register comes into force, unless the insurance terms and conditions or the Insurance Policy stipulate otherwise. 16. Contrary to paragraphs 14 and 15 of this Article, insurance related to a unit located in a building where an association of unit owners has been formed shall not expire by change of ownership or coownership of the unit. 17. Insurance related to ownership of insured property that is part of joint property of spouses shall expire by termination of the joint property of spouses, unless the insurance terms and conditions or the Insurance Policy stipulate otherwise. 18. If the Insurance Policy has been concluded by distance selling, the policyholder shall be entitled to withdraw from the policy without stating a reason within 14 days from the date of concluding it or from the date when he has been informed about the insurance terms and conditions, if such information is provided on his or her demand after concluding the policy. 19. If the policyholder withdraws from the Insurance Policy pursuant to paragraph 18 of this Article, the insurer shall return the paid premium to the policyholder without undue delay, however not later than within 30 days from the effective date of the withdrawal. When doing so, the insurer shall be entitled to deduct any performance provided under the insurance. However, if the indemnity was paid in an amount exceeding the amount of paid premium, the policyholder or the insured shall return the amount of paid indemnity exceeding the paid premium to the insurer. 20. The Insurance Policy shall be terminated by revoking the consent with the processing of personal data and the insurer shall discontinue investigation of insurance claims and payments of indemnities. In this case, the insurer shall be entitled to receive premiums until the end of the insurance period when the insurance expired; if the premium is stipulated as lump sum, the insurer shall be entitled to the full lump sum premium. Article 8 Changed insured risk 1. If the circumstances stated in the policy or asked about by the insurer (Article 11, paragraph 1 of these insurance terms and conditions) change materially enough to increase the likelihood of occurrence of

4 an insured event under an explicitly agreed insured risk, the insured risk increases. The policyholder (or the insured in the case of insuring other parties risk) shall be obliged to inform the insurer about a changed or eliminated insured risk without undue delay. 2. Changed insured risk means a material increase or reduction of the risk (such as due to changed method of use of the insured property, changed security level, changed place of insurance, etc.). 3. If the insured risk is reduced materially in the course of the insurance term, the insurer shall be obliged to reduce the premium adequately with regard to the reduction, effective as of the date when the insurer has learned about the reduced risk. 4. Without the insurer s consent the policyholder must not do anything that increases the insured risk and must not allow a third party to do the same. If additionally discovering that the policyholder has let the insured risk increase without the insurer s consent, the policyholder shall inform the insurer thereof without undue delay. If the insured risk increases independent of the policyholder s will, the policyholder shall inform the insurer thereof without undue delay after discovering the fact. If other parties risk is insured, the insured person shall have the obligations stipulated in the previous sentence of this paragraph. 5. If the insurer proves that the he would have concluded the policy on different terms if the increased insured risk existed when concluding the policy, he shall be entitled to propose a new amount of the premium as of the date when the insured risk increased. Failing to do so within one month from the date when he was informed about the change his right shall expire. The policyholder shall be obliged to reply to the proposal within 1 month from the date of delivery, unless the insurer s proposal stipulates a longer term. 6. If the proposal is not accepted or if the policyholder fails to reply to the change in the time according to the previous paragraph or if the newly specified premium is not paid in the agreed time, otherwise within one month from the date of delivery of the proposal, the insurer shall be entitled to terminate the insurance subject to an eight day notice of termination; however, the insurer shall not have this right in case he failed to point out the termination option in the proposal. Unless the insurer terminates the insurance within 2 months from the date when he received the refusal or from the date when the term for the policyholder s reply expired, his right to terminate the insurance shall expire. 7. In the event that the insurer proves that under the conditions applicable at the time of concluding the policy he would not have concluded the policy if the increased insured risk existed already when concluding the policy, he shall be entitled to terminate the insurance subject to an eight day notice. Unless the insurer terminates the insurance within one month from the date when the change has been reported to him, his right to terminate the insurance shall expire. Article 9 Insurance of other parties insured risks 1. The policyholder shall be obliged to inform the insured about the contents of the Insurance Policy related to his or her insured risk. 2. The policyholder may claim indemnity only if establishing compliance with the obligation according to the previous sentence and establishing that the insured or a legal representative of the insured, unless the policyholder is the insured s legal representative, agreed that the policyholder receives the indemnity. 3. In the event that the policyholder fails to prove compliance with the conditions according to the previous paragraph, the insured can claim the indemnity. 4. If the policyholder who took out insurance in respect of another party s insured risk dies or is dissolved, the insured party shall enter the insurance instead of the policyholder as of the date when the policyholder died or was dissolved without a legal successor. Article 10 Interruption of the insurance Provisions of the Act stipulating that the insurance interruption term starts by expiration of 2 months after the due date of the premium if the premium has not been paid shall not apply to this insurance. Article 11

5 Rights and obligations of the parties to the insurance 1. If the insurer asks in writing the prospective insurance client when negotiating on a policy or the policyholder when negotiating on an amendment to a policy about facts that are significant for the insurer s judgment when evaluating the insured risk, deciding whether and on what terms he will insure the risk, the prospect or policyholder shall answer such questions in a true and complete manner. The obligation is deemed duly fulfilled if no material fact was omitted from the answer. 2. The same as stipulated in paragraph 1 on the policyholder s obligation applies by analogy to the insured. 3. If the prospect asks the insurer in writing when negotiating on a policy or the policyholder when negotiating on an amendment to a policy about facts related to the insurance, the insurer shall answer such questions in a true and complete manner. Also, an insurance broker can fulfil this obligation in the name of the insurer, if authorized by the insurer to do so. 4. The policyholder and the insured are obliged to inform the insurer without undue delay about any change to the facts they have been asked about in writing when concluding or amending the Insurance Policy. 5. If the insurance covers property that is part of joint property of spouses, the policyholder and the insured are obliged to inform the insurer without undue delay about termination or changed scope of the joint property of spouses. 6. The policyholder and the insured are obliged: a) to allow the insurer to anytime inspect any accounting or other documents and conduct any required investigations, including inspection of the place of insurance, if required to ascertain or verify facts that are decisive for determining the amount of the premium, b) to realize efforts to prevent occurrence of an insured event and to proceed in accordance with the insurer s instructions issued in order to avoid or mitigate the risk of occurrence of the insured event, c) if an event associated with an insurance claim occurs, to inform the insurer without undue delay, to provide the insurer with a true explanation of occurrence and scope of consequences of the event (determine the amount of the insurance claim), rights of third parties and any multiple or concurrent insurance, d) to provide the insurer without undue delay with documents (in the Czech language) required to ascertain the circumstances decisive for evaluating the insurance claim and amount thereof, as requested by the insurer, and to allow the insurer to make copies of such documents. 7. The policyholder and the insured are obliged: a) to take all possible measures to prevent the consequences of an insured event from growing, to ask for insurer s instructions for doing so, if applicable, and to proceed in accordance with such instructions, b) to allow the insurer to conduct required investigations, to provide the insurer with cooperation required to determine the causes and amount of the damage or other harm, and to proceed in a manner stipulated in the insurance terms and conditions or the Insurance Policy, c) to hold repairs of the property damaged by the insured event or to hold removal of such damaged property until insurer s instruction for reasonable time given the circumstances of the case, d) to report an insured event that occurred under circumstances indicating a crime to law enforcement authorities without undue delay. 8. Without undue delay after reporting the event pursuant to paragraph 6, point c) of this Article, the insurer shall initiate an investigation required to ascertain existence and scope of his obligation to provide performance. The investigation shall be ended by informing the person who claimed the indemnity about the outcome of the investigation; on demand of this person the insurer shall provide written reasons for the amount of the indemnity or for rejecting the claim. 9. If the information contains wilfully untrue or grossly misinterpreted material data concerning the scope of the reported claim, or if it wilfully omits data concerning the event, the insurer shall be entitled to be compensated for costs reasonably incurred in respect of investigation of the facts that are subject to such provided or omitted data. It shall be deemed that the insurer incurred the costs in the established amount reasonably. 10. If the policyholder, the insured or another party claiming the indemnity causes investigation costs or an increase of the same by violation of an obligation, the insurer shall be entitled to claim reasonable compensation from the person in question.

6 11. The policyholder and the insured are obliged to inform the insurer of having concluded another insurance against the same insured risk and for the same term (multiple or concurrent insurance) with one or multiple insurers, to disclose the business name (name) of the insurer or insurers, and the insured sum or indemnity limit. 12. The policyholder and the insured are also obliged to fulfil other obligations arising out of the Act, the insurance terms and conditions or the Insurance Policy. Article 12 Consequences of violated obligations 1. If a violated obligation of the policyholder or the insured during negotiations on concluding or amending a policy resulted in a lower premium, the insurer shall be entitled to proportionally reduce the indemnity according to the ratio of the received premium to the premium that he should have received. 2. If the policyholder violates the obligation to report an increase of the insured risk and if an insured event occurred after the change, the insurer shall be entitled to proportionally reduce the indemnity according to the ratio of the received premium to the premium that he should have received if learning about the increased insured risk from the notice in time. 3. In case the violation of the obligation of the policyholder, the insured or another person entitled to receive the indemnity has a substantial influence on occurrence of the insured event, its course, increased scope of its consequences, or on ascertaining or determining the amount of indemnity, the insurer shall be entitled to proportionally reduce the indemnity according to the influence of the violation on the scope of the insurer s obligation to render performance. 4. The insurer shall proceed with reduction of the indemnity for reasons stated in the previous paragraph always if occurrence or bigger scope of consequences of the insured event were caused by gross negligence of persons mentioned in Article 28, paragraph 1, point a) or Article 36, paragraph 1, point a). 5. In case the policyholder violates the obligation to announce an increase of the insured risk, the insurer shall be entitled to terminate the insurance without a notice period. If the insurer terminates the insurance, he shall be entitled to the premiums until the end of the insurance period when the insurance expired; in this case, the insurer shall be entitled to keep the full lump sum insurance. In case the insurer fails to terminate the insurance within two months from the date when the insurer has learned about the increased insured risk his right to terminate the insurance shall expire. Article 13 Premium 1. The policyholder shall be obliged to pay the agreed premium to the insurer. The amount of premiums is agreed in the Insurance Policy. 2. The insurer s right to receive the premium shall be established as of the date of concluding the Insurance Policy, unless a later date of establishment of this right of the insurer is agreed in the Insurance Policy. 3. Current premiums shall be due and payable as of the first day of the insurance period. In the event of agreed half yearly, quarterly or monthly instalments, the premium instalment shall be due and payable as of the day of the given half year, quarter, or month, which matches the number of the day of the start of insurance. 4. Current premiums are calculated for annual insurance periods. When agreeing on half yearly, quarterly, or monthly instalments of current premiums, a surcharge of 3%, 5%, or 10% shall be added to the annual premium. 5. A lump sum premium is due and payable as of the date of start of the insurance. 6. Premiums are paid as of the date when credited in an account of the insurer or the insurance broker (if authorized to accept them) in the event of a wire transfer, or as of the date when the insurer or the insurance broker authorized to accept the premium confirmed receipt of the premium in cash. 7. In case the premium was not paid in time or in agreed amount, the insurer shall be entitled to receive reminder expenses for every sent reminder notice to pay the premium and to receive interest on late payment according to law.

7 8. The insurer shall be entitled to receive premiums for the insurance term. In case the insurance expires as a result of an insured event, the insurer shall be entitled to receive premiums until the end of the insurance period in which the insured event occurred; in the event of a lump sum premium the insurer shall be entitled to receive the full premium in such a case. 9. The insurer may only adjust the amount of paid premiums under conditions stipulated in the Act, the insurance terms and conditions, or the Insurance Policy. In case the insurer adjusts the amount of premiums, he shall inform the policyholder about the amount at least two months before the due date of premiums for the insurance period in which the amount of premiums is to be changed. 10. In case the policyholder does not agree with the change, he or she may express such dissent within one month from the day when the policyholder has learned about the change; in such a case the insurance shall expire by expiration of the insurance period, for which the premium is paid. However, if the insurer failed to inform the policyholder about this consequence in the notice pursuant to paragraph 9 of this Article, the insurance shall remain in place and in case of the policyholder s dissent the premium amount shall remain unchanged. 11. Overpaid premiums can be used as advance payments of premiums for the following insurance period, unless the policyholder claims refund. Article 14 Insured event An insured event shall mean an accidental fact detailed in the Insurance Policy that is associated with establishment of the insurer s obligation to provide the indemnity. Article 15 Deductible 1. A deductible can be agreed in the Insurance Policy. The deductible shall mean the amount of participation of the beneficiary in settlement of the occurred loss under each insurance claim, deducted by the insurer from the awarded indemnity. If the loss amount does not exceed the agreed deductible amount, no indemnity shall be provided. Article 16 Indemnity 1. Indemnity shall be provided in cash and shall be due and payable in the Czech Republic in the Czech currency, unless agreed otherwise. 2. The insurer shall provide indemnity under one insured event up to the upper limit of the indemnity stated in the Policy Insurance as the insured sum or the indemnity limit. 3. The indemnity is due and payable within 15 days from the end of investigation. The investigation is ended as soon as the insurer informs the person who has raised the insurance claim about the outcome of the investigation. If the beneficiary assigns the indemnity to a third party as a receivable or pledges the indemnity or places another security interest over the indemnity in favour of a third party before end of the investigation, the insurer shall not be bound to such actions of the beneficiary. 4. The insurer shall be obliged to end the investigation within 3 months after the date of the insurance claim being provably reported. If the investigation required to ascertain the insured event, scope of indemnity or to identify the person entitled to accept the indemnity within 3 months from the reporting date, the insurer shall inform the reporter about the reasons why the investigations cannot be ended; if requested by the reporter, the insurer shall provide the reasons in writing. The insurer shall provide the person claiming the indemnity with a reasonable advance in respect of the indemnity, if requested by the claimant; this shall not apply if there are reasonable grounds for not granting the advance. 5. The insurer shall be entitled to deduct due receivables under premiums or other receivables under the insurance from the indemnity. 6. The insurer may refuse to provide the indemnity if the insured event was caused by a fact: a) that he only learned about after actual occurrence of the insured event, b) that he could not have identified when concluding or amending the insurance as a result of violation of an obligation stipulated in Article 11, paragraph 1 of these insurance terms and conditions,

8 c) if the insurer would not have concluded this policy or would have concluded it on different terms had he been aware of such a fact. 7. If the insured person caused the insured event under the influence of alcohol or a habit forming substance or a product containing such a substance, the insurer shall be entitled to claim compensation from the insured for the indemnity provided on his or her behalf. 8. The insurer shall not have the right pursuant to Article 7 if alcohol or a habit forming substance was contained in a medicament used by the insured in a manner prescribed by a doctor, and thedoctor or the producer of the medicament failed to inform the injured person that activities that resulted in causing the insured event cannot be performed during the active time of the medicament. Article 17 Rescue costs 1. The insurer, the insurer, or another party shall be entitled to recover reasonably incurred costs from the insurer, which costs: a) they incurred in order to avoid occurrence of an imminent insured event, b) they incurred in order to mitigate the consequences of an already occurred insured event, c) they were obliged to incur for hygienic, environmental, or security reasons when removing damaged property or remains. 2. The insurer shall not cover costs incurred in respect of usual maintenance of property or fulfilment of a mandatory obligation to prevent losses. Furthermore, the insurer shall not cover costs mentioned in the previous paragraph and incurred by the Czech Police, the Fire Rescue Brigade or other entities obliged to incur such costs in the public interest according to law. 3. The insurer shall cover the costs stated in paragraph 1 of this Article and incurred in respect of saving the life or health of persons up to the amount of 30% of the upper limit of the indemnity under one insured event as agreed in the Insurance Policy. 4. The insurer shall cover the other costs stated in paragraph 1 of this Article up to the amount of 5% of the upper limit of the indemnity under one insured event as agreed in the Insurance Policy. 5. Rescue costs incurred with insurer s consent that the persons listed in paragraph 1 of this Article would not have otherwise been obliged to pay shall be covered by the insurer without limitation. 6. Provisions of this Article shall not apply to losses caused by circumstances stated in Articles 28 and 36 of these insurance terms and conditions. 7. The insured sum or the indemnity limit cannot be decreased by the amount of rescue costs. Article 18 Devolution of rights to the insurer 1. If in connection with an imminent or occurred insured event a right of a person entitled to receive indemnity, the insured, or the person who incurred rescue costs, for compensation of loss, or a similar right towards another party was established, such a receivable including accessions, collateral and other rights associated therewith shall pass onto the insurer as of the moment of payment of the indemnity up to the amount of indemnity paid by the insurer to the beneficiary. 2. Rights stated in paragraph 1 towards persons living with the said persons in a common household or towards persons dependent on them in terms of subsistence shall not devolve onto the insurer. However, the above shall not apply if such persons caused the loss by wilful misconduct. 3. Persons stated in paragraph 1 shall be obliged to proceed in a manner to let the insurer exercise the right to claim damages or another similar right towards another party, as established in connection with the insurance claim. 4. The person whose right has devolved to the insurer shall provide the insurer with the required documents and shall inform the insurer about everything required to claim the receivable. In the event of frustrating the devolution of the right to the insurer, the insurer shall be entitled to decrease the indemnity under the insurance by the amount the insurer could have otherwise acquired. In case the insurer has provided the indemnity already, he shall be entitled to receive compensation up to the said amount. 5. Receivables under the insurance cannot be assigned, pledges or otherwise disposed of without insurer s consent.

9 Article 19 Delivery 1. For the purpose of this insurance a shipment shall mean every document or financial amount sent by the insurer to the policyholder, the insurer or other persons, and by the policyholder, the insured or other persons to the insurer. 2. The insurer shall send a shipment to the policyholder to the last known address, and to the insured and other persons to an address announced to the insurer in writing. The policyholder shall be obliged to inform the insurer about every change of the address for delivery of shipments. 3. Financial amounts can be sent by the insurer to an account provably announced to the insurer by the policyholder, the insurer or another person. 4. The policyholder, the insured and beneficiaries shall send documents to the registered office of the insurer and financial amounts to insurer s accounts announced to them by the insurer. Shipments are sent via a postal service licensee, but can also be delivered in person. Financial amounts can be sent via financial institutions. 5. A document addressed to the insurer shall be delivered as of the day when the insurer confirms receipt thereof. A financial amount addressed to the insurer shall be delivered as of the day when credited in his account or the day when the insurer confirmed receipt of the amount in cash. A document or financial amount addressed to the policyholder shall be deemed delivered as of the day when the insurance broker confirms receipt thereof, if authorized by the policyholder to accept it. 6. A document of the insurer intended for the policyholder, the insured or a beneficiary (hereinafter referred to as the addressee ) shall be deemed delivered as of the day when accepted by the addressee or the day when the addressee refused to accept the document. Having failed to reach the addressee, a document being delivered via a postal service licensee shall be stored with the licensee who shall ask the addressee to collect it. The document shall be deemed delivered as of the day when stored even if the addressee failed to learn about it, or as of the day when returned to the insurer as undeliverable; the above shall not apply if the addressee proves that he could not have collected the document or informed the insurer about a changed address due to staying in a hospital, spa, abroad or for other serious reasons. A financial amount intended for the addressee in case of payment by wire transfer shall be delivered as of the day when credited in the addressee s account and in case of payment via a postal service licensee by handing it over to the licensee. 7. Delivery according to paragraphs 5 and 6 of this Article applies to shipments sent against a proof of delivery or in the form of delivery to the hands of the addressee. A document sent via a postal service licensee as regular or registered mail shall be deemed delivered only if the sender proves its delivery or if the intended recipient confirms the delivery. 8. Sending documents via electronic means with effects of delivery pursuant to paragraph 5 and first sentence of paragraph 6 is possible either based on an agreement of the parties to the insurance on the method of sending documents and confirming receipt of the same, or if the addressee confirms delivery in an unquestionable manner. Article 20 Processing of personal data, authorization to disclose information 1. Based on and in accordance with the Act on the protection of personal data the insurer as an administrator processes personal data of natural persons and informs about the rights of the subject of the data and about the obligations of the administrator and processor. 2. The insurer considers personal data to be sensitive data and is obliged to treat them as confidential along with information concerning the concluded insurance. This obligation can only be cancelled if agreed by the person in question or if requested in writing by state authorities, administrative authorities and other entities identified by law. By concluding the Insurance Policy the policyholder/insured releases the insurer from the obligation of confidentiality in respect of the concluded insurance and insurance claims towards the reinsurer for the purpose of the insurer s reinsurance. 3. The insurer and his contractual processors complying with the conditions stipulated by the Act on the protection of personal data (in particular insurance brokers) shall process address and identification personal data to the extent as the same was provided in connection with the insurance contract or another legal relationship (for example as the policyholder, insured, prospect, injured, person

10 authorized by the subject of the data, etc.) for the purpose of insurance activities and for the time necessarily required to secure the rights and obligations arising out of the obliging legal relationship and for the time arising out of generally applicable legislation (such as the Act on archiving, Antimoney laundering Act, accounting and tax regulations, etc.). 4. Provision of personal data is voluntary, however necessary to conclude the Insurance Policy and to perform the rights and obligations arising out of the Insurance Policy as well as to fulfil obligations and exercise rights under other legal relationships. 5. By revoking the consent with the processing of personal data the Insurance Policy expires and the policyholder shall discontinue investigation of insurance claims and settlement of indemnities. In this case the insurer shall be entitled to receive premiums until the end of the insurance period when the insurance expired; if the premium is agreed as lump sum premium the insurer shall be entitled to the full lump sum premium in such a case. 6. The person whose data are processed or who provided the personal data shall be obliged to announce any change of the personal data to the administrator immediately. Article 21 Terms and definitions For the purpose of the insurance concluded in accordance with these insurance terms and conditions the following definitions shall apply: 1. Asbestos (or liability for damages caused by asbestos) liability arising out of mining, processing, producing, distributing and/or removing asbestos and/or products or materials entirely, mostly or party made of asbestos, as well as liability arising out of use or application of products or materials entirely, mostly or partly made of or containing asbestos. 2. Current premium premium determined per insurance period. 3. Building aboveground structure connected with soil via a fixed foundation, centralized in terms of space and mostly formed by peripheral walls and a roof structure. 4. Price Price of new is a price, for which the same or a comparable thing can be acquired as the same or new thing of the same type and purpose in the given place and time. Price in time is a price that a thing had immediately before the insured event; it is derived from the price of new, taking into account the wear and tear or other deterioration, or improvement of the thing reached through repair, modernization or otherwise. Regular price is a price that would have been attained upon sale of the same or similar thing in regular business in the local country. 5. Environmental harm loss or impairment of natural functions of the ecosystem occurred by damage of their parts or interference with the internal relations and processes as a result of human activities. 6. Gross negligence such neglecting of due care and prudence, violation of legislation or regulations issued thereupon, or of contractually assumed obligations, which resulted in property loss or other harm or an increase of the consequences (such as violation of fire protection rules, material violation of technology rules, material violation of road traffic rules, activities under the influence of alcohol or other habit forming substances, etc.); gross negligence shall always include actions that were the cause of occurrence of an insured event and for which a person stated in Article 28, paragraph 1, point a) or Article 36, paragraph 1, point a) of these insurance terms and conditions was convictedby final judgment of a negligent offence. 7. Hygienic, environmental, or security reasons reasons that are the cause of removal of damaged insured property or remains shall mean removal as a result of a decision issued by a relevant state authority. 8. Unit includes an apartment (non residential premises) as a spatially separated part of a house and a share in common parts of the building that are interconnected and inseparable. 9. Lump sum premium premium determined for the entire term, for which the insurance is concluded. 10. Other harm to wealth any harm to health or property occurred otherwise than by death, in particular: Other harm to wealth resulting from death, harm to health or property loss, in particular lost income and lost profit (so called consequential loss).

11 10.2. Other harm to wealth not resulting from death, harm to health or property loss (so called net financial loss). 11. Wealth set of one s property and debt (of a legal entity or natural person). 12. Property movable and real property specified in the Insurance Policy. 13. Accidental fact fact that is possible and not certain to occur during the insurance term. 14. Beneficiary the beneficiary is the insured person. 15. Relative next of kin, sibling, and spouse or partner according to another Act governing registered partnership; other family members or persons in a similar relationship shall be considered relatives if a harm suffered by one would be reasonably felt as own harm by the other. It shall be deemed that brothers and sisters in law or persons permanently living together are also relatives. 16. Counting of time a term or period specified by days shall start on the day following the initial fact. The end of a term or period specified by weeks, months or years shall be on a day matching the name or number of the day of the fact when the term or period started. In case the last month lacks such a day, the last day of the month shall be the end of the term or period. 17. Undermining human activity consisting of mining underground adits, shafts, tunnels and similar underground structures. 18. Insurer Allianz pojišťovna, a.s., having its registered office at: KeŠtvanici 656/3, Prague 8, Czech Republic, corporate ID No.: Insurance term term for which the insurance is concluded. 20. Insured sum sum expressing the value of insured property. 21. Insured value highest possible property loss that may occur as a result of an insured event. 22. Insured event accidental fact detailed in the Insurance Policy, which is associated with establishment of the insurer s obligation to provide the indemnity. 23. Premium consideration for the insurance that the policyholder is obliged to pay to the insurer. 24. Insured risk possible cause of occurrence of an insured event. 25. Insurance period time period agreed in the insurance policy, for which the premium is paid. 26. Insurance risk likelihood of occurrence of an insured event caused by the insured risk. 27. Policyholder person who concluded the insurance policy with the insurer and is obliged to pay the premiums according to the policy. 28. Insurance year time between one and another anniversary of the start of the insurance. 29. Insurance of other parties risk insurance concluded by the policyholder in respect of the insured person s insurance risk, where the insured is not the policyholder. 30. Insured person whose property or liability or another value of insurable interest is covered by the insurance. 31. Insurance broker natural person or legal entity performing professional activities leading to conclusion of insurance policies and other related activities; the position of insurance brokers, their rights and obligations are governed by the Act on insurance brokers and claim adjusters. 32. Operation of vehicles operation of vehicles shall mean putting a vehicle to move, driving, stopping and common maintenance of motorcycles, passenger vehicles, buses, trucks, special vehicles, other road vehicles, and trams, other railway vehicles, cable cars. 33. Annual indemnity limit the indemnity for one and all claims in the course of one insurance year. 34. Subsidence of soil downward motion of the surface towards the centre of the Earth as a result of natural forces or human activities. 35. Landslide movement of rocks or soils from higher positions of a slope to lower positions, occurring as a result of gravitation or human activities in the event of disturbed static balance of the slope. 36. Actual loss decrease of assets of the injured party compared against to the status before the loss, or the cost required for reinstating the injured party s assets. 37. Deductible amount agreed between the policyholder and the insurer in the insurance policy, deducted from the indemnity upon every insurance claim. 38. Property loss damage or destruction of a thing. 39. Loss caused by wilful misconduct loss caused by wilful misconduct or wilful omission, if the perpetrator knew that he or she may cause a harmful consequence and wanted to cause it, or knew that he or she may cause a harmful consequence and for the case of causing it he or she acknowledged it. 40. Loss event a fact that resulted in loss or other harm and that might be the cause of a right to claim indemnity.

12 41. Environmental losses damages to the environment or its parts (air, water, rocks, soil, living organisms, ecosystems and energies); environment shall also include consequential losses resulting from pollution of the environment (such as dead fish and animals as a result of contaminated water, destroyed crops as a result of contaminated soil, lost profit). Contamination shall mean infestation, pollution, or other impairment of quality of the individual parts forming the environment. 42. Harm to health physical harm to a natural person. 43. Wilful misconduct always concerns culpable actions, in particular: the acting person pursued the consequences and his or her actions led to them direct intention, the acting person knew that the consequences may occur, acknowledged it, and stayed indifferent to its occurrence indirect intention. 44. Tangible item controllable part of the outside world of the nature of a stand alone item. 45. Insurance anniversary a day, the number of which in a month and the month of which match the day of the start of the insurance. 46. Loss of property a situation when the injured lost the possibility to dispose of a thing, independent of his or her will. 47. Animal for the purpose of this insurance, it is considered a movable tangible thing to the extent that it is not contrary to its nature. Provisions of the Act on things shall only apply to live animals to the extent that it is not contrary to its nature. PROPERTY INSURANCE Article 22 Scope of the insurance The scope of the insurance includes tangible movables (hereinafter referred to as movables), buildings, ancillary buildings and units individually specified in the Insurance Policy or forming a set identified in the Insurance Policy, or other property stated in the Insurance Policy (hereinafter referred to as the insured property ). Article 23 Place of the insurance 1. The insurance covers the insured property located at the place of the insurance. The place of the insurance is a building or land lot, on which the insured property or premises stated in the Insurance Policy are located. Article 24 Insured event 1. An insured event is the occurrence of damage to the insured property in connection with an accidental event that is associated with the insurer s obligation to provide the indemnity in accordance with the insurance terms and conditions and the Insurance Policy. 2. The insurance can be taken out against insured risks or groups of insured risks stated in ZPP. The insurer shall provide the indemnity in the event that the damage to the insured property occurred as a result of the insured risk, for which the insurance cover is explicitly taken out in the Insurance Policy. 3. All insured events arising out of one cause shall be considered one insured event. Also, all insured events resulting from multiple causes of the same kind shall be considered one insured event if there is local, time or other direct causality among them. 4. In the case of property insurance one insured event shall mean all insured events or series of insured events resulting from one cause within 72 hours. The moment when the first damage to the insured property due to the agreed insured risk occurred shall be deemed the start of the 72 hour period. Insured events that occurred before the starting date of the insurance or after the expiration date of the insurance shall not be considered insured events. 5. The insurer shall also provide the indemnity up to the total upper limit of indemnity if the insured property was damaged, destroyed or lost as a direct result of an insured event. Article 25

13 Insured sum, indemnity limit 1. The insured sum expresses the insured value of the insured property. The policyholder shall determine the insured sum at own responsibility. In case the policyholder is not the insured person, the policyholder shall determine the insured sum following an agreement with the insured. 2. The policyholder shall be obliged to determine the insured sum in order to match the insured value of the insured property as at the time of concluding the insurance. Furthermore, the policyholder shall be obliged to make sure that the insured sum corresponds to the insured value of the insured property in the course of the insurance term. The insured sum can be changed in the course of an insurance period at request of the policyholder. Retroactive changes are inadmissible. 3. The insurance is concluded for the price of new or the price in time of the insured thing. 4. The price of new shall mean a price, for which the same or a comparable thing can be acquired as the same or new thing of the same type and purpose in the given place and time. 5. The price in time shall mean a price that a thing had immediately before the insured event; it is derived from the price of new, taking into account the wear and tear or other deterioration, or improvement of the thing reached through repair, modernization or otherwise. 6. The insured value of securities accepted for trading in the public market shall be their price published in the schedule of prices on the day of occurrence of the insured event. The insured value of other securities shall be their market price. The insured value of available documents (deposits books etc.) shall be the value of their respective assets on the day of the occurrence of the insured event. 7. The insured value of a co owner share in an item of property shall be determined as portion of the item s insured value corresponding to the size of the co owner share. 8. In case the insured sum exceeds the insured value of the insured property (overinsurance), both the insurer and the policyholder shall be entitled to suggest to the other party that the insured sum be reduced along with proportional reduction of the premium for the next insurance period after the change. In case the other party fails to accept the proposal within one month from receipt, the insurance shall expire as of the day after expiration of the last day of the said term. 9. In case the insured sum exceeds the insured value of the insured property and lump sum premium was agreed, the insurer shall be entitled to claim reduction of the insured sum under the condition that the premium will also be proportionally reduced, and the policyholder shall be entitled to claim reduction of the premium under the condition that the insured sum will also be proportionally reduced. 10. In case the insured value cannot be determined or if agreed between the policyholder and the insurer, the upper limit of indemnity under one insured event shall be set as the indemnity limit as proposed by the policyholder. In such a case, provisions of Article 26, paragraph 7 of these insurance terms and conditions shall not apply. 11. If the insurance policy stipulates that the insurance only applies to a part of the value of the insured property (fractional insurance), indemnity limits for specific insured items or property or other property values and insurance risks shall be set as proposed by the policyholder. Article 26 Indemnity, underinsurance 1. If as a result of an insured event the insured property is damaged, the insurer shall cover the reasonable cost of repairing such property up to the amount of cost of acquiring new, however not exceeding the upper limit of indemnity agreed in the Insurance Policy for specific insured items. 2. If as a result of an insured event the insured property is destroyed, stolen, or lost, the insurer shall provide reasonable indemnity up to the amount of the price of the insured property pursuant ot Article 25 as at the date of occurrence of the insured event, however not exceeding the upper limit of indemnity agreed in the Insurance Policy for specific insured items. 3. If the building, ancillary structure, or unit is insured for the price of new, the insurer shall not be obliged to provide indemnity exceeding the price in time, unless the insured repairs or buys the new property within three years from the insured event. 4. For settlement of insured events including compensation of costs, occurred in the course of one insurance year, including indemnities that are payable after expiration of the year, the insurer shall provide indemnity up to the upper limit of indemnity under one insured event, unless the insurance terms and conditions state otherwise.

14 5. In the event of insurance of a co owner share in an item of property, the indemnity shall be provided in a proportionate part of the total loss corresponding to the size of the co owner share on the date of occurrence of the insured event, however not exceeding the upper limit of indemnity agreed in the Insurance Policy. 6. Remaining parts of insured property damaged or destroyed in an insured event shall remain property of the insured and the value thereof shall be deducted from the indemnity. 7. If the insured sum at the time of the insured event is lower than the insured value of the insured property (underinsurance), the insurer shall reduce the indemnity proportionately to the ratio of the insured sum to the actual amount of the insured value of the insured property. 8. If the insured property is pledged and an insured event occurs, the insurance company shall perform under the Insurance Policy to the pledgee, if the pledgee proves his security interest over the property to the insurance company in time, or the pledger or debtor informs the insurer of the same in time. The pledgee shall be entitled to retain performance under the Insurance Policy and to apply it against his claims if his receivable fails to be settled duly and in time, unless agreed otherwise. The pledgee shall release the excess above the receivable, including accessions and costs that the pledgee is entitled to receive compensation for, to the debtor. 9. If the insured person caused the insured event under the influence of alcohol or a habit forming substance or a product containing such a substance, the insurer shall be entitled to claim compensation from the insured for the indemnity provided on his or her behalf. 10. The insurer shall not have the right pursuant to Article 9 if alcohol or a habit forming substance was contained in a medicament used by the insured in a manner prescribed by a doctor, and the doctor or the producer of the medicament failed to inform the injured person that activities that resulted in causing the insured event cannot be performed during the active time of the medicament. Article 27 Changes If the joint property of spouses was terminated by death or declared death of the spouse who concluded the insurance policy for insurance of property that is part of the joint property of spouses, the surviving spouse shall enter the insurance instead of the deceased, if still the owner or co owner of the insured property. Article 28 Exclusions from insurance 1. The insurance does not cover losses directly or indirectly caused or increased by the following regardless of other causes: a) wilful misconduct of the insured, a relative of the insured or a person living in a common household with the insured, b) as a result of use of alcohol or application of narcotic or psychotropic substances by persons stated under point a), c) war events, riot, rebellion, or other unlawful seizure of state or official power, nationalisation, confiscation or other interference of state or official power, mass violent acts and terrorist acts (i.e. violent acts with political, social, ideological or religious motives), d) nuclear power, radioactive radiation and radioactive contamination or pollution of any kind, e) effect of electromagnetic fields and electromagnetic radiation or any other radiation, f) development, production, provision, or installation of software, due to loss, damage, change, or malfunction of, or impaired possibility to operate or use telecommunication equipment or other means of communication, a computer system, applications, software, internet, e commerce, data, information resources, microchips, integrated circuits, or a similar device in a computer or another equipment, g) mould, fungus, and spores. 2. Also, the insurance does not cover: a) any other harm to health arising out of a property loss (so called consequential financial losses), in particular lost income and lost profit, b) road vehicles and special vehicles subject to roadworthiness approval procedures pursuant to special legislation, c) airplanes, aircraft and watercraft of any kind, unless agreed otherwise in the Insurance Policy.

15 3. Other exclusions from insurance can be stipulated in ZPP or agreed in the Insurance Policy. Article 29 Other obligations of the policyholder and the insured In the event of property insurance, the policyholder and the insured shall be obliged to: a) take due care of the insured property, in particular to maintain the property in a good technical condition, to immediately remove any defect or risk that he or she learns about and that might influence occurrence of an insured event or increase the scope of its consequences, b) announce changes of the manner of use of the insured property to the insurer without undue delay. Article 30 Finding lost or stolen property 1. The policyholder or the insured shall be obliged to inform the insurer without undue delay about finding stolen or lost property or remains of the same after an insured event or payment of indemnity. 2. If after occurrence of an insured event the insurer provided indemnity, title to the insured property shall not devolve to the insurer and the insurer shall not be obliged to accept such found property, unless agreed otherwise. The insurer shall have the right to claim release of what he provided as indemnity. However, the beneficiary may deduct reasonably incurred cost of removal of defects occurred during the time when it has been deprived of the ability to dispose of the property. Article 31 Construction price index, cost of living index (indexation) 1. In case of building insurance the insured sum and premiums shall change in the course of the insurance term depending on development of the construction price index for the past insurance year. The construction price index shall be determined by the insurer based on data published by the Czech Statistical Office or ÚRS Praha, a.s. 2. In case of household insurance the insured sum and premiums shall change depending on the cost ofliving index. The cost of living index shall mean the index of consumer prices of goods and services published in the Statistical yearbook of the Czech Republic for the relevant year, as published by the Czech Statistical Office. 3. If this index increases during the insurance term, the agreed insured sum and premiums for the upcoming insurance year shall be increased accordingly, unless agreed in the Insurance Policy otherwise. 4. In case the policyholder does not accept the change of the insured sum and premium according to paragraph 3 of this Article, he or she exposes himself/herself to the risk of underinsurance. The insurer and the policyholder can terminate the insurance within one month from announcement of the change, subject to an eight day notice period. Article 32 Bonus 1. The insurer shall grant a discount on the premium (bonus) in the amount of 5% for every insurance year of uninterrupted term of insurance without an insured event that would have resulted in payment of indemnity; the discount shall be provided from the next anniversary. The discount can reach up to 30%. 2. In case indemnity was paid under an insured event in an insurance year, the bonus will decreased starting from the following anniversary after payment of the indemnity by 5% for every insured event. 3. Both the discount and increase stated in paragraphs 1 and 2 of this Article shall be calculated based on the yearly calculation of premium determined for the next insurance period. 4. Both the discount and increase stated in this Article shall not apply to insurance of buildings under construction. LIABILITY INSURANCE

16 Article 33 Liability insurance 1. In the event of taking out insurance of citizen liability in accordance with these insurance terms and conditions the insured has the right to have the insurer compensate the injured party in an insured event for the following (i.e. if the insured became obliged to compensate by virtue of law): a) actual loss of real property or tangible movable property caused by damage or destruction, b) harm upon harm to health and death, c) other harm to wealth arising out of harm to health, upon death, and out of property loss (so called consequential loss), d) cost of proceedings stated in Article 38 of these insurance terms and conditions, if the insured complied with his obligations imposed by provisions of Article 37 of these insurance terms and conditions. 2. The insured event shall be establishment of the insured s obligation to compensate for loss or harm, which is associated with the insurer s obligation to render the indemnity. 3. The insurer shall be obliged to render the indemnity under the assumption that the legal fact that resulted in the loss or harm occurred during the insurance term, unless otherwise agreed in the Insurance Policy. Article 34 Insured event 1. The insured event shall be establishment of the insured s obligation to compensate for loss or harm, which is associated with the insurer s obligation to render the indemnity. 2. The insurer shall be obliged to render the indemnity under the assumption that the legal fact that resulted in the loss or harm occurred during the insurance term, unless otherwise agreed in the Insurance Policy. 3. All insurance claims arising out of one cause shall be deemed one insured event. Also, all insured events resulting from multiple causes of the same kind shall be considered one insured event if there is local, time or other direct causality among them. Article 35 Indemnity 1. The insurer shall pay compensation for loss or harm to the injured party. However, the injured party shall not be entitled to claim the indemnity from the insurer. 2. In the case of an insured event the insurer shall provide the indemnity in the form of compensation for loss or harm up to the amount of claims raised and established by the injured, however only up to the agreed limit of indemnity for one and all insured events in the course of one insurance year as agreed in the Insurance Policy. 3. The insurer shall provide the indemnity for settlement of all insurance claims, including compensations for cost of proceedings, incurred in the course of one insurance year, including indemnities due and payable after expiration of the year, up to the amount of the limit of indemnity under one insured event, unless the insurance terms and conditions or the Insurance Policy stipulate otherwise. 4. If liability of the insured for loss or harm or the amount of the compensation for loss or harm is being determined in proceeds before a court, arbiter or another authority, the insurer shall be obliged to render performance only after becoming aware of such proceedings ending by a final decision. 5. If the sum of rights to receive the indemnity by multiple injured parties exceeds the limit of indemnity agreed in the Insurance Policy, the indemnity for each of them shall be proportionally reduced according to the ratio of the agreed indemnity limit to the sum of claimed rights of all injured parties. Article 36 Exclusions from insurance

17 1. The insurance does not cover the obligation of the insured to compensate for loss or harm and costs stated in Article 38 of these insurance terms and conditions if the loss or harm is directly or indirectly caused or increased by the following regardless of other causes: a) wilful misconduct of the insured, a relative of the insured or a person living in a common household with the insured, b) otherwise than based on prior actual loss of property, harm resulting from injury or upon death, c) activities that are subject to an obligation to take out liability insurance by virtue of law, or if it is stipulated that the insurance is established without concluding an insurance policy, d) to a thing borrowed, rented or leased by the insured from another in order to use it for own personal needs or needs of the relatives, or a thing unlawfully possessed by the insured, e) to leased buildings, unless the insurance policy stipulates otherwise, f) to premises reserved for accommodation of the insured, unless agreed otherwise, g) ownership, possession, use, and operation of motor and non motor vehicles, railway vehicles, cable cars, airplanes, aircraft, and watercraft of any kind, h) to airplanes, aircraft, spaceships and spacecraft of any kind, i) war events, riot, rebellion, or other unlawful seizure of state or official power, nationalisation, confiscation or other interference of state or official power, mass violent acts and terrorist acts (i.e. violent acts with political, social, ideological or religious motives), repressive acts by the state s authorities and security bodies, j) bringing or spreading any contagious disease of humans, animals or plants, k) blood derivatives, HIV transmission, or genetically modified organisms, l) nuclear power, radioactive radiation and radioactive contamination or pollution, m) effect of electromagnetic fields and electromagnetic radiation or any other radiation, n) subsidence of soil or landslide, erosion, undermining, vibrations, gradually leaking in dampness, o) asbestos or material containing asbestos, by formaldehyde, paints containing lead, and by other carcinogenic (causing cancer) substances, p) mould, fungus, and spores, q) development, production, provision, or installation of software, due to loss, damage, change, or malfunction of, or impaired possibility to operate or use telecommunication equipment or other means of communication, a computer system, applications, software, internet, e commerce, data, information resources, microchips, integrated circuits, or a similar device in a computer or another equipment, r) in connection with the handling of ammunition, fireworks, explosives, compressed or liquefied gas, hazardous chemical compounds or agents, or hazardous waste, s) pollution of the environment as well as losses resulting from pollution of the environment, t) in connection with performing activities of the statutory body of a unit owner association, unless agreed otherwise, u) nanotechnology, v) lost item of property. 2. Also, the insurance does not cover the obligation to compensate for loss or harm: a) arising out of employment and service relationships, b) occurring in connection with the business activities of the insured, c) that the insured is liable for based on labour law, including liability for loss or harm caused by a workrelated injury or illness, d) occurred during active participation in any sport competitions and races including preparations for the same, unless otherwise agreed in the insurance policy, e) occurred as a result of an obligation assumed by the insured, relative of the insured, or a person living in a common household with the insured, in excess of the legal framework, or assumed by contract. 3. The insurance does not cover an obligation of the insured to compensate for loss or harm or to make any compensation regardless of the nature of the same as awarded by a court in the United States of America, Canada, Australia, and New Zealand, or awarded based on law of the United States of America, Canada, Australia, and New Zealand. 4. The insurance does not cover liability for loss or other harm arising out of imposed or claimed fines, penalties, and compensation for any other contractual, administrative, penal, or other sanctions, regardless of the entity against which it is claimed. For the purpose of these insurance terms and conditions administrative sanction shall mean sanctions imposed in particular by tax authorities, social security authorities, health insurance companies and other state and local government authorities.

18 5. Furthermore, the insurance does not cover loss or other harm caused by the insured: a) to other persons insured under the same insurance policy, b) to his or her wife/husband, siblings, next of kin, and other relatives and persons living with the insured in a common household, c) to a business entity, in which the insured or persons stated in point b) hold a participation, up to the percentage of such a participation, d) to a natural person or persons stated in paragraph b), who hold a participation in the insured entity, up to the percentage of such a participation, e) to owners of apartments and non residential premises (hereinafter referred to as the unit ) who are members of the insured association of unit owners, their spouses, next of kin, and other relatives and persons living with the insured in a common household, all up to the amount of the relevant co owner share of the unit owner in common premises of the building. In cases when the apartment or nonresidential premises are part of joint property of spouses, the relevant co owner share attributed to each spouse for this purpose shall be one half. In cases when the apartment or non residential premises are co owned by more co owners, a co owner share in common premises of the building shall be added to each co owner to the extent of his or her co owner share in respect of the apartment or non residential premises. 6. The insurance does not cover an obligation of the insured to settle the cost arising out of provision of sickness insurance benefits or pensions under pension insurance, unless otherwise agreed in the insurance policy. Also, the insurance does not cover compensation of costs of treatment incurred by a health insurance company, unless otherwise agreed in the insurance policy. 7. Other exclusions from insurance can be stipulated in ZPP or agreed in the Insurance Policy. Article 37 Other obligations of the insured 1. The insured shall be obliged to: a) inform the insurer without undue delay and in writing about occurrence of an insured event, the fact that the injured party claims loss or harm, and to comment on his or her responsibility for the loss or harm and on the claimed amount, b) inform the insurer without undue delay and in writing about the fact that the compensation for loss or harm is claimed against him or her in connection with the insured event at court or out of court, that he or she is subject to proceedings initiated before a court, arbiter or other public authority in connection with the insured event, to disclose the name of his or her legal representative, to inform the insurer about the course and outcome of the proceedings and to provide all related materials to the insurer immediately, c) not to settle or acknowledge, although only partially, the claimed compensation for loss or harm, and not to conclude settlement agreements or court settlements, unless with insurer s written consent, d) to act in the proceedings for compensation for loss or harm in accordance with the insurer s instructions. 2. In proceedings for compensation for loss the insured shall be obliged to proceed in accordance with the insurer s instructions. The insurer shall be entitled to negotiate on an insurance claim on behalf of the insured as soon as it is reported to the insurer. Article 38 Compensation for costs of proceedings 1. In case of an insured event the insurer shall cover the following costs on behalf of the insured within the limit of indemnity: a) civil court proceedings for compensation for loss or harm, if necessary to ascertain liability of the insured or the amount of compensation, and legal costs of the insured in these proceedings in all instances, b) out of court negotiations of the injured party s claim, if the insurer undertook to do so in writing. 2. The insurer shall only cover the cost of defence in all instances of criminal proceedings against the insured in connection with an insured event and legal expenses pursuant to paragraph 1 of this Article that exceed the maximal non contractual attorney fees according to the laws of the Czech Republic, if the insurer undertook to do so in writing.

19 3. In case the insured is obliged to compensate for loss or harm exceeding the upper limit of indemnity under one insured event, the insurer shall cover the cost of proceedings proportionately reduced according to the ratio of the upper limit of indemnity under one insured event to the total amount of claims, although there are multiple proceedings to one claim. 4. Provisions of this Article shall not apply to loss events caused by circumstances stated in Article 36 of the present insurance terms and conditions. Article 39 Devolution of rights 1. In case the insurer settled loss or harm or cost of proceedings on behalf of the insured, the following rights shall devolve to the insurer in accordance with Article 18 of these insurance terms and conditions: a) for refund of the paid amount or for reducing or discontinuing payment of pension benefits if the insurer paid the amount in question or pays the pension benefits on behalf of the insured, b) for payment of costs of proceedings for loss or harm compensation awarded to the insured against the defendant, if the insurer paid on his or her behalf, c) for settlement or regress up to the amounts paid by the insurer on behalf of the insured. 2. If a situation justifying devolution of rights stated in the previous paragraph to the insurer occurs, the insured shall be obliged to inform the insurer thereof immediately and to provide him with documents required to exercise such rights. Article 40 Authorizations of the insurer 1. If the policyholder or the insured violated the obligations stipulated in the Act, the insurance terms and conditions, or the Insurance Policy, the insurer shall be entitled to claim the provided indemnity against them, all proportionately to the consequences of the violation of obligations, if the violation had a material effect on the occurrence, course or bigger extent of the consequences of the insured event, or on ascertaining or determining the amount of indemnity. 2. The insurer shall be entitled to receive compensation for the provided indemnity if: a) the insured event was caused as a result of drinking of alcohol or application or narcotic or psychotropic substances, b) the insured intentionally mislead the insurer in respect of material facts related to the insured event. 3. If the insured person caused aloss event under the influence of alcohol or a habit forming substance or a product containing such a substance, the insurer shall be entitled to claim compensation from the insured for the performance provided on his or her behalf. 4. The insurer shall not have the right pursuant to Article 3 if alcohol or a habit forming substance was contained in a medicament used by the insured in a manner prescribed by a doctor, and the doctor or the producer of the medicament failed to inform the injuredperson that activities that resulted in causing the loss event cannot be performed during the active time of the medicament. FINAL PROVISIONS Article 41 Validity These insurance terms and conditions become valid as of 1 January 2014.

20 Special insurance terms and conditions for permanently occupied building insurance ZPP B 1/14 Article 1 Introduction The general principles of building insurance concluded with Allianz pojišťovna,a.s. are stipulated in the general insurance terms and conditions for property and liability insurance VPPMO 1/14 (hereinafter referred to as VPP). Article 2 Subject of the insurance 1. The insurance can cover the following (hereinafter referred to as the insured property): a) residential buildings stated in the insurance policy including structural parts and outside connections, b) privately owned apartments stated in the insurance policy including all structural parts and including the share in common parts of the building, c) cooperative apartments stated in the insurance policy including all structural parts, d) ancillary structures and technical equipment pursuant to Article 15, paragraph 4, points a), b) and e) of these special insurance terms and conditions for permanently occupied building insurance ZPP B 1/14 (hereinafter referred to as ZPP), located on the same land lot as the building stated under point a) of this Article, and ancillary structures pursuant to Article 15, paragraph 4, points c) and d) of these ZPP, located in the same building as apartments stated under points b) and c) of this Article, including all structural parts and outside connections, if taking out the Optimal or Exclusive variant of the insurance or if subject to supplementary insurance, e) individually insured privately owned garages including all structural parts, f) co owner shares, i.e. ideal parts of a residential building expressed by size of the co owner share, g) construction material owned by the insured and intended for construction, maintenance or reconstruction of the insured property shall be insured against all agreed insured risks if secured by means of protective measures pursuant to Article 15, paragraph 15, point a) of these ZPP. Furthermore, construction mechanisms and tools intended for construction, maintenance or reconstruction of the insured property shall be insured against all agreed insured risks if secured by means of protective measures pursuant to Article 15, paragraph 15 of these ZPP, h) built in electric motors serving for operation of the insured building, i) movable fire extinguishers and equipment of fire hydrant cabinets; these items are also insured against loss caused by simple theft (without overcoming security); in such a case, payment of indemnity is conditioned by a proof or having reported the theft to the Czech Police, j) locked equipment serving for operation of a joint laundry room, k) movable property owned by the insured housing cooperative or owned by the association of unit owners stated in the insurance policy as the policyholder, l) photovoltaic power plant that is part of the main or ancillary structure; the photovoltaic plant must be installed or put into operation in accordance with requirements of manufacturers of the specific components; in accordance with the provisions of Article 3 of VPPMO 1/14, the beneficiary in the case of a photovoltaic power plant is the legal entity or natural person, who is the owner or operator of the photovoltaic power plant, m) glass greenhouses under the Exclusive variant. 2. Construction material placed freely at the place of insurance, i.e. material, the weight or size of which prevent it from being kept in premises secured by means of protective measures pursuant to Article 15, paragraph 15 of these ZPP, can only be insured against the risk of simple theft in the form of an insurance rider pursuant to Article 12 of these ZPP. 3. The insurance can be concluded for residential buildings and apartments used as a permanent home. 4. Upper indemnity limits upon loss of property stated in paragraph 1 of this Article are stipulated in Article 7 of these ZPP. 5. The insurance does not cover: a) other things placed in the buildings or on a thing adjacent to the buildings, not listed in paragraph 1 of this Article (such as retainingand curtain walls, etc.), b) other paved areas than insurable in accordance with paragraph 1, point d) of this Article,