Foreign Casualty SubmissionMaster Controlled International Program

Sony Pictures Entertainment Inc.

Prepared by:Lockton Companies, LLCNovember 1, 2013 – November 1, 2014

Section

Executive Summary 1

Account Management Team 2

Operational Overview 3

Insurance Specifications 4

Policy Issuance Requirements 5

Broker Compensation 6

Exposure and Loss Information 7

2

Executive SummarySony Pictures Entertainment Inc. (SPE), headquartered in Culver City, CA is a subsidiary of Sony Corporation of America, a subsidiary of Tokyo-based Sony Corporation. SPE’s global operations encompass motion picture production and distribution; television production and distribution; home entertainment acquisition and distribution; operation of studio facilities; development of new entertainment services and technologies; and distribution of entertainment in more than 140 countries.

Within this renewal, Lockton and SPE are seeking to partner with AIG to enhance the existing global program by ensuring that:

Coverage is broad in scope, yet cost efficient Locations and admitted policies are rationalized

Rates and Exposures for Productions are rationalized Ensure Administrative Excellence

Named Insureds Russia – Separate invoices will have to be issued per office location Ensure Prompt Issuance of All Local Policies and Local Premium Collection

Evaluate local policy issuance efficiencies

International Exposure-

Argentina Australia Austria Belgium Brazil China Colombia Croatia Czech Republic Egypt France Germany Greece Hong Kong

Hungary India Ireland Italy Japan Lebanon Malaysia Mexico Netherlands New Zealand Panama Philippines Poland Portugal

Romania Russia Singapore South Korea Spain Sweden Switzerland Taiwan Thailand U.A.E. United Kingdom Venezuela

Principal carrier service requirements include:

Policy issuance Premium collection Certification Claims handling and reporting

3

Executive Summary

The insurance program will be based and should be rated on Global Payroll, as Payroll is the strongest indicator of scope of operations for a company like SPE. Please see attached exposure information for further detail.

The program shall remain nonadjustable.

Important dates:

All quotations are due to Lockton no later than Monday October 11th, 2013.

The program will incept on November 1, 2013.

All global instructions to be issued 10 days post inception.

Per local regulations, premium payment in India, China and South Korea must be settled prior to inception. Please advise the fronting offices accordingly and we will coordinate with the client and our partners accordingly.

Master policy must be issued 30 days post inception

4

Account Management Team

Vice President, International:

Michael Lombardi mlombardi@lockton.com

(646) 572-3923(917) 455-9607

Account Manager, International

Tim Kuklevsky tkuklevs@lockton.com

(646) 572-3926(646) 872-7127

Senior Vice President, Senior Account Executive:

Roger DeBerardine rdeberar@lockton.com

(646) 572-7321(917) 301-8405

Client Advocate: Garrett Mathiesongmathies@lockton.com

(646) 572-3900(914) 024-5142

5

Operational OverviewThe core business operation of Sony Pictures Entertainment (SPE) is the production and distribution of motion picture and television programming. In addition to these principal operations, SPE:

Manages television channel investments, worldwide Acquires and distributes home entertainment products (DVD, Blu-Ray and UMD) Develops entertainment products and services for broadband (web/ mobile) distribution Markets entertainment products and licensed merchandise for consumers Operates studio facilities

The subsidiaries of Sony Pictures Entertainment and their primary operations are as follows: Columbia TriStar Motion Picture Group

o Responsible for the sales, distribution and marketing of SPE’s film product, otherwise known as “Releasing.”

Sony Pictures Classics, Columbia Pictures, Screen Gems, TriStar Pictureso Studio Productions

Sony Pictures Home Entertainmento Distributes SPE and acquired third-party theatrical and non-theatrical product on

Blu-Ray disc, DVD, UMD and through new medial (mobile and digital) to the worldwide home entertainment market

Sony Pictures Television Group o Produce and distribute approximately 60 programs worldwide, spanning all

formats and genres. Owns 50 cable and satellite networks and 114 channel feeds, broadcasting in 21 languages in 140 countries.

Crackle o A multi-platform video entertainment network and studio that distributes work

from emerging talent on the web.

Branded Distribution Channels o Local language channels in over 30 countries

Sony Pictures Digital Production o Consists of Sony Pictures Animation, Sony Pictures Imageworks, and Imageworks

interactive. Produces stories, characters, images, visual effects and animation

Sony Pictures Technologies o Dedicated to developing and deploying technological solutions to advance the

creation, management and distribution of movie, television and other entertainment content

6

Operational OverviewThe range of operations of SPE can be aggregated into two categories:

1. Corporate2. Production

The Corporate side of the business is an office risk. SPE sets up offices in each country of operation worldwide to handle the financial, clerical and managerial aspects of their business, including:

Accounting/ Clerical Sales/ Managerial Licensing - Grants licensing rights to SPE’s large library of television programs and

motion pictures to broadcast and cable networks, network affiliates and independent stations and other broadcasters throughout the world

Distribution – Using internal resources to distribute SPE’s products (film, television, motion picture, etc.) to a variety of media platforms (theaters, television channels, multimedia, etc.)

Funding – Funding third party Production Service Companies to create productions

The Production side of the business is a premises/ operational risk. When a US production requires filming in a foreign location, or when foreign productions require filming locally, SPE agrees to provide the general liability insurance for the entire production while on site. It is the intent of this program to provide cover for the premises/ operational risk to third parties during production for both global and local productions.

While it is SPE’s practice to require that all subcontractors (e.g. lighting, sound, equipment providers) to carry and evidence their own general liability cover while on the production site, the ultimate responsibility for third party bodily injury and property damage while on site rests with SPE. Note that a separate and distinct Production Service Package policy is in place with Fireman’s Fund to cover:

Cast Insurance Negative Film/ Videotape Extra Expense Office Contents Money & Securities Faulty Stock, Camera & Processing Props, Set & Wardrobe Rented Camera and Misc. Equipment Third Party Property Damage

It is not the intent of this program to cover any of the risks associated with the Production Package Program.

7

Insurance SpecificationsTerm: November 1, 2013–November 1, 2014

Program Design: Master Controlled International Program – General Liability

Territory: Worldwide

Jurisdiction: Worldwide

General Liability

Coverage: Occurrence form coverage for bodily injury and property damage claims of third parties arising out of the named insured’s premises, operations and products.

Including: Comprehensive General Liability coverage; to include all general liability products: completed operations/personal and advertising injury, fire damage, Employer’s liability (to be included in an admitted general liability policy) and contingent auto liability.

Limits:

Commercial General Liability$ 10,000,000 General Aggregate$ 2,000,000 Each Occurrence$ 5,000,000 Products/Completed Operations Aggregate$ 2,000,000 Personal and Advertising Injury Each Occurrence$ 5,000,000 Personal and Advertising Injury Aggregate$ 1,000,000 Premises Damage Each Occurrence$ 50,000 per Person

Employee Benefit Liability$ 2,000,000 Each Claim$ 2,000,000 Annual Aggregate

Deductible: Nil

8

Insurance Specifications

Commercial Auto Liability

Bodily Injury/Property Damage per accident.....................................................$ 3,000,000...........................................................................................................................Medical Payments per person............................................................................$ 50,000...........................................................................................................................Medical Payments per accident.........................................................................$ 100,000...........................................................................................................................

Provide Option For Physical Damage Coverage

Endorsements

Hired and non-owned automobile liability included Newly acquired/formed entities - # of days 180 Territory amended to include Canada Rental vehicle loss of use Rental vehicle physical damage Employees as insured Pollution coverage form Blanket waiver of subrogation Blanket additional insured Amend the Underlying coverage clause: $25,000 or compulsory limits – should reflect compulsory requirement only.

9

Insurance Specifications

Foreign Voluntary Workers Compensation and Employers Liability

Foreign Voluntary Workers CompensationCovered Employees:

A. U.S. and Canadian Citizens

B. Third Country Nationals

Benefits Applicable (Limits):

A. Statutory, according to the laws of the state as declaredstate of hire

B. Statutory according to the laws of the country of origin

Employer’s LiabilityCovered Employees:

A. U.S. and Canadian citizens employees of the insured

B. Third Country National employees of the insured

C. Local National employees of the insured

Limits of Coverage:Bodily injury by accident, each accident.............................................................$ 2,000,000Bodily injury by disease, policy limit...................................................................$ 2,000,000Bodily injury by disease, each employee............................................................$ 2,000,000

ENDORSEMENTS: Endemic disease Repatriation limit (per employee)..........................................................$ 500,000 Repatriation limit (Aggregate)................................................................$ 1,000,000 24-hour medical coverage Reverse Trip Travel

10

Insurance Specifications

ENDORSEMENTS:

The following endorsements are requested: Difference in limits endorsement Fellow employee exclusion deleted Amend Ownership or use of watercraft coverage 150 feet. Blanket vendors per written contract Blanket additional insured Designated additional insured Blanket waiver of subrogation Incidental medical malpractice Newly acquired, etc. 180 Days Employment-related practices Broad form named insured Unintentional errors and omissions Host liquor Silent on punitive damages 90-day notice of cancellation 90-day notice of nonrenewal Worldwide coverage territory Liberalization clause Pollution extended to cover hostile fire Pollution extended to cover products Broad knowledge of occurrence Written contractual for personal injury and advertising injury Worldwide jurisdiction including US suits for foreign occurrences Employees as additional insureds Extended definition of bodily injury Extended definition of personal injury Extended definition of fire damage liability Designated additional insured – lessor of leased equipment automatic coverage Additional Insured – Managers/ Lessors of Premises Additional Insured - Clubs Deletion of Care, Custody or Control Exclusion

11

Insurance Specifications—General Liability

Exposure Base and RatingExposure base used for rating purposes is Payroll.

Ratings for ProductionsThe existing rating structure for productions at the following rates is reflective of the production operations:

$387 per week $63 per employee $15 per vehicle

Ratings for EpisodesIn view of an episodic production to take place in the UK, SPE have has requested an option to return to a rating structure for episodic productions. Note that, historically, this exposure was rated at $15 per episode.

12

Policy Issuance RequirementsLocal Policies should be issued to ‘good local standard’ in each country with a local per occurrence and aggregate limit matching the Master Policy.

Premium is collected in-country with objective of premiums invoiced and paid within 60 days.

Lockton and Chartis to evaluate local policy issuance practices to determine whether potential efficiencies can be made under admitted/ non-admitted regulations.

Local program admitted GL policies-

Limits - $2,000,000

Country

 

Non-Admitted Permissibl

e?

Policy Issuance

2012-2013

Policy Issuance

2013-2014

Argentina   No Local Local Australia   Yes Local Local Austria   Yes Local Local Belgium   No Local Local Brazil   No Local * Local *China   No Local Local Colombia   No XS/DIC LocalCroatia   No Local Local

Czech Republic   YesNon-admitted

Non-admitted

Egypt   No Local LocalFrance   No Local Local Germany   Yes Local Local Greece   Yes Local Local Hong Kong   Yes Local Local Hungary   Yes Local Local India   No Local * Local *Ireland   No Local Local Italy   No Local Local Japan   No XS/DIC XS/DICLebanon   No Local Local Malaysia   No XS/DIC XS/DICMexico   No Local Local Netherlands   Yes Local Local

13

Policy Issuance Requirements

New Zealand   Yes Local Local Panama   No Local Local Philippines   No Local Local Poland   No Local Local Portugal   No Local Local Romania   Yes Local Local Russia   No Local Local Singapore   Yes Local Local South Korea   No Local Local Spain   No Local Local Sweden   Yes Local Local Switzerland   Yes Local Local Taiwan   Yes Local Local Thailand   Yes Local Local United Arab Emirates   No Local Local United Kingdom   Yes Local Local Venezuela   No Local * Local *Totals     32 33

3* 3** Placements coordinated by AIG but outside the master program.

AIG to arrange stand-alone GL placements in Brazil, India and Venezuela.

Local admitted EL policies-

UK –

Limit of 10,000,000 GBP

Ireland-

Limit of 2,500,000 Euros

14

Broker Compensation

This program shall be issued on a 0% commission basis to Lockton on the Master Program and a 15% commission basis on each local policy.

15

2013 Exposure Information Reference Attached Exposure Data.Analysis:

16

2013 Loss Information

Full Loss Run Data on File at AIG.

Analysis:

17

2013 Loss Information

18