watercraft not owned by the "insured" but used in the "insured's" business. The insurance with respect to any person or organization other than the "insured" does not apply under this division:

(1) to any person or organization, or to any agent or employee thereof, operating an "auto" sales agency, repair shop, service station, storage garage or public parking place, with respect to any "occurrence" arising out of the operation thereof;

(2) with respect to any "auto" hired by or loaned to the "insured", to the owner or lessee thereof other than the "insured", or to any agent or employee of such owner or lessee.

9. "PRODUCTS" means goods or products manufactured, sold, handled or distributed by the "insured" or by others trading under the "insured's" name, including any container thereof (other than a vehicle), but "products" shall not include a vending machine or any property other than such container, rented to or located for use of others but not sold.

10. "PRODUCTS HAZARD" includes "Personal Injury" and "Property Damage" arising out of the "insured's" "products" or reliance upon a representation or warranty with respect thereto, but only if the "Personal Injury" or "Property Damage" occurs away from premises owned by or rented to the "insured" and after physical possession has been relinquished to others.

11. "PROPERTY DAMAGE" shall mean: (a) physical injury to or destruction of tangible property, including loss of use thereof at any time resulting therefrom; or (b) loss of use of tangible property which has not been physically injured or destroyed, provided such loss of use is caused by a covered "occurrence".

12. "ULTIMATE NET LOSS" means the total sum which the "insured", or any company as its insurer, or both, become legally obligated to pay by reason of "Personal Injury", "Property Damage" or "Advertising Injury" "claims" covered by this policy, either through adjudication or compromise (with our written consent), and shall also include hospital, medical and funeral charges and all sums paid or payable as salaries, wages, compensation, fees, charges, interest, or expense for doctors, nurses, and investigators and other persons, and for settlement, adjustment, investigation and defense of "claims" but excluding the "insured's" salaries or the salaries of any of the underlying insurer's permanent employees.

LEX-CM-STA-2 - 18 -
(Ed. 4/86)