# OFFICE TREATY

**NUCLEAR INCIDENT EXCLUSION ENDORSEMENT**

For attachment to Contract No.: X-3100 between International Business Machines Corporation and General Reinsurance Corporation. Effective date of this Endorsement: June 29, 1961.

From 12:01 o'clock A.M. Standard Time of the above effective date it is understood and agreed that the Contract of which this Endorsement forms a part is hereby amended in the following particulars:

It is agreed that the contract does not apply:

I. Under any Liability Coverage, to injury, sickness, disease, death or destruction:
   (a) with respect to which an insured under the contract is also an insured under a nuclear energy liability policy issued by the Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; or
   (b) with respect to the handling, use, storage or transportation of properties of nuclear material and with respect to which (1) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or (2) the insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization.

II. Under any Medical Payments Coverage, or under any Supplementary Payments Provisions relating to immediate medical or surgical relief, to expenses incurred with respect to bodily injury, sickness, disease or death resulting from the handling, use, storage or transportation of properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization.

III. Under any Liability Coverage, to injury, sickness, disease, death or destruction resulting from the hazardous properties of nuclear material if:
   (a) the nuclear material (1) is at any nuclear facility owned by, or operated by or on behalf of, an insured or (2) has been discharged or dispersed therefrom;
   (b) the nuclear material is contained in spent fuel or waste at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an insured; or
   (c) the injury, sickness, disease, death or destruction arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any nuclear reactor or any other nuclear facility located within the United States of America or territories or possessions of Canada, this exclusion (c) applies only to injury to or destruction of property at such nuclear facility.
IV. As used in this endorsement:
   "hazardous properties" include radioactive, toxic or explosive properties; "nuclear material" means source material, special nuclear material, byproduct material, "source material," "special nuclear material," and "byproduct material" have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; "spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear reactor or other nuclear facility and is no longer suitable for further use in sustaining byproduct materials and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (a) or (b) thereof; "nuclear facility" means:
   (a) any nuclear reactor,
   (b) any device designed or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing spent fuel, or (3) handling, processing or packaging waste,
   (c) any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the amount of special nuclear material exceeds 25 grams of uranium 235 or any combination thereof, or more than 250 grams of uranium 235,
   (d) any site, excluding the building or place prepared or used for the storage or disposal of waste, and including the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; "nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self-sustaining chain reaction or to contain a critical mass of fissionable material;
   With respect to the loss or destruction of property, the word "injury" or "destruction" includes all forms of radioactive contamination of property.
V. If the contract to which this endorsement is attached refers to the party covered as the "reinsured" or "assured", same is understood to mean "insured" as herein.
Notwithstanding the above, this shall vary, alter or extend any agreement, provision, general condition or declaration of the Contract other than as above stated.

In Witness Whereof, the GENERAL REINSURANCE CORPORATION has caused this Endorsement to be signed by its President and Secretary at New York, New York, but the same shall not be binding upon the Reinsurer unless countersigned by another officer of the Reinsurer.

**Secretary**
**President**

Countersigned at New York, New York this 19th day of July, 1961.

GENERAL REINSURANCE CORPORATION

Vice President—Assistant Secretary