tonnage of all such additional Watercraft shall not exceed 20% of the gross tonnage of Watercraft listed on Schedule C;

(2) loading or unloading of any Watercraft at premises owned, leased or controlled by the Insured;

(3) liability for any Personal Injury or Property Damage to third parties arising out of or allegedly arising out of Incidental Watercraft Use (provided that damage to the hull or any portion, component or equipment of the Watercraft owned, leased or chartered by the Insured or to its cargo contents shall not constitute Property Damage to third parties);

(4) liability for Personal Injury, Property Damage or Advertising Liability arising out of the design, construction, maintenance or sale by the Insured of any Watercraft less than 75 feet in length; or

(5) Personal Injury, Property Damage or Advertising Liability arising out of or alleged to arise out of design, manufacture, maintenance or sale by the Insured of any component part or equipment of any Watercraft.

K. POLLUTION

(1) (a) liability for Personal Injury, Property Damage or Advertising Liability arising out of the Discharge of Pollutants into or upon land or real estate, the atmosphere, or any watercourse or body of water whether above or below ground or otherwise into the environment; or

(b) liability, loss, cost or expense of any Insured or others arising out of any direction or request, whether governmental or otherwise, that any Insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize Pollutants.

This Exclusion K applies whether or not such Discharge of such Pollutants:

(i) results from the Insured's activities or the activities of any other person or entity;
(ii) is sudden, gradual, accidental, unexpected or unintended; or
(iii) arises out of or relates to industrial operations or the Waste or by-products thereof.

(2) Paragraph (1) of this Exclusion K does not apply to:

(a) Product Pollution Liability; or

(b) (i) liability of the Insured for Personal Injury or Property Damage caused by an intentional Discharge of Pollutants solely for the purpose of mitigating or avoiding Personal Injury or Property Damage which would be covered by this Policy; or

(ii) liability of the Insured for Personal Injury or Property Damage caused by a Discharge of Pollutants which is not Expected or Intended, but only if the Insured becomes aware of the commencement of such Discharge within seven (7) days of such commencement;

provided that the Insured gives the Insurer written notice in accordance with Section D of Article V of this Policy of such commencement of the Discharge under subparagraphs (2)(b)(i) or (ii) of this Exclusion K within forty (40) days of such commencement. Such notice must be provided irrespective of whether notice as soon as practicable otherwise would be required pursuant to Section A of Article V of this Policy.