# INSURING AGREEMENT

## NUCLEAR ENERGY LIABILITY EXCLUSION

It is agreed that the insurance afforded under any liability policy issued by the Nuclear Energy Liability Insurance Association, Inc., or any successor thereto, with respect to injury, sickness, disease, death, or destruction with respect to which such policy provides coverage, shall be deemed terminated upon exhaustion of its limit of liability.

(a) The ownership, maintenance, operation or use of a nuclear facility, or the furnishing of services, materials, parts or equipment by an insured in connection with the ownership, maintenance, operation or use of any nuclear facility, (1) with respect to injury, sickness, disease, death or destruction resulting from the nuclear energy hazard or (2) if the insured is located outside the United States of America, for the United Kingdom, Canada, with respect to injury, sickness, disease, death or destruction resulting from the nuclear energy hazard.

(b) Shall not apply to goods or products manufactured, produced, processed, fabricated, alloyed, incorporated or made use of by an insured while such goods or products are being transported, handled, used, sold, distributed or disposed of.

(c) To the furnishing of services, materials, parts or equipment by an insured in connection with the ownership, maintenance, operation or use of any nuclear facility, (1) with respect to injury, sickness, disease, death or destruction resulting from the nuclear energy hazard or (2) if the insured is located outside the United States of America, for the United Kingdom, Canada, with respect to injury, sickness, disease, death or destruction resulting from the nuclear energy hazard.

(d) To the transportation, handling, use, sale, distribution or disposal of byproduct material, with respect to injury, sickness, disease, death or destruction resulting from the nuclear energy hazard.

As used in this exclusion:

1. The term "nuclear energy hazard" means the radioactive, toxic, explosive or other harmful properties of source material, special nuclear material or byproduct material.
2. The terms "source material," "special nuclear material" and "byproduct material" have the meanings given them in the Atomic Energy Act of 1954 or by any law amending thereof. The term "source material" shall include any material that has been irradiated with special nuclear material or (b) held, stored, transported, processed, fabricated, alloyed, incorporated or made use of such irradiated material.
3. The term "nuclear facility" means:
   (a) any apparatus designed or used to sustain nuclear fission or to produce, process, fabricate, alloy, incorporate or make use of source material;
   (b) any equipment or device (i) designed or used for the processing, fabrication or alloying of special nuclear material or (ii) incorporating or making use of such irradiated material;
   (c) any structure, basin, excavation, premises or place consisting of or containing special nuclear material and includes the site on which any of the foregoing is located and any building or structure thereon used in connection with such operations.
4. With respect to injury to or destruction of property, the exclusions set forth in this exclusion shall not apply to the value of property.

2120 (4/73)