ML20065T324

Forwards Endorsements 30,31,32,33,34 & 35 to Nelia Policy NF-296,Endorsements 23,24,25,26,27 & 28 to Maelu Policy MF-127 & Endorsements 11 to Nelia Certificate N-109 & Maelu Certificate M-109

ML20065T324
Person / Time
Site:	Seabrook
Issue date:	12/21/1990
From:	Feigenbaum T PUBLIC SERVICE CO. OF NEW HAMPSHIRE
To:	Murley T Office of Nuclear Reactor Regulation
References
NYN-90216, NUDOCS 9012280045
Download: ML20065T324 (81)

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J,4 ' New, Hampshira J

Yh Ted C. Feigenbaum President and Chief Executive Officer-q 1

. NYN 90216 3

December 21, 1990-

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' United -States Nuclear _ Regulatory Commission

~-Washington, D.C..20555-Attention':

Dr.iThomas E. Murley, Director Office -of Nuclear Reactor Regulation-1

References:

Facility Operating License No. -NPF 86, Docket No. 50 443 i

Subject:

Seabrook Station Nuclear Liability Insurance i

- Gentlemen:

Enclosed.please ' find two certified -copies of each of the following e'ndorsements to

_the below listed nuclear. liability' insurance policies for 'Seabrook Station.

- Policy No.

Endorsement No, NF 296 ~

30, 31, 32, 33, 34, aad ' 35 f

M F-127 23, 24, 25;-26,.27 and 28

-l

'N 109--

11 3

-M 109.

11 This information ;is provided. in accordan'ce with the requirements of 10CFR140.15.

Should youl have' any-. questions regardingl this -information, please contact Mr. James M.

Pe'schel,l Regulatory Compliance Manager.at '(603) 474 9521,' extension 3772.

J

_ =Very truly yours,.

4 f

Ted C. Feigenbaum J ES/TCF: tad t

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9012280045 901221 PDR ADOCK 05000443 i

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- New Hampshire Yankee Division of Public Service Company of New Hampshire

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P.O. Box 300

• Seabrook, NH 03874 *' Telephone (603) 474 9521 j

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1 United States Nuclear Regulatory Commission New Hampshire Yankee Attention: Dr. Thomas E. Murley, Director December 21, 1990 cc:

Document Control Desk

' United States Nuclear Regulatory Commission Washington, DC 20555 Mr. Thomas T. Martin Regional Administrator United States Nuclear Regulatory Commission Region I 475 Allendale Road King of Prussia, PA 19406 Mr. Noel Dudley NRC Senior Resid.d Inspector P.O. Box 1149 i

Seabrook, NH 03874

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Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)

Effective-August 20, 1988', the named insured, acting for himself and every other insured under the policy, and the members of Nuclear Energy ~ Liability Insurance Association agree as follows:

1.

With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in.the course of the construction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of :the transportation of nuclear material to or from the-facility, the insureds ano the companies agree to waive (1) any issue or defense as to the conduct of.the claimant or the fault of the insureds, including but not limited to:

(i) negligence,

'(11) contributory negligence, (iii) assumption of risk, and (iv) unforeseeable intervening

causes, whether involving the conduct of a third person, act of God,

_ or an

-(2) any issue or defense as to charitabla or governmental immunity, and (3) any issue or-defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause'thereof.

The waiver of any such issue or defense shall be effective regardless of whether such issu or defen e may otherwise be deemed jurisdictional or' relating to an aiement in the cause of action.

2.

The waivers set forth in paragraph 1. above do not apply to NE-33b Page 1 of 3-

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-.(a) - bodily injury or property damage which is intentionally sustained by _ the claimant-or which results from a i

nuclear-incident intentionally'and wrongfully caused by the-claimant; (b)- bodily' injury sustained by any claimant who-is employed at the.. site of and,in connection with the ' activity 1

where the extraordinary nuclear occurrence-takes place if benefits therefor are either payable or required to be provided -under any workmen's compensation or occupational disease. law; 3

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(c) any claim for punitive or exemplary damages, provided, with respect to_any_ claim for wrongful death under any i

State law which provides ' for damages only - punitive in-i nature, this exclusien does not-apply to the extent 1

that the claimant has _ sustained' actual -damages, measured by the pecuniary injuries resulting from such death but not.to exceed the maximum amount otherwise recoverable under law.

3.

The ' waivers set forth in paragraph 1.

above shall be effective ' only with respect to bodily injury or property damage to which the policy' applies under. its terms other than this endorsement; provided,.however, that with respect to bodily injury ~ or property damage resulting

.f rom. an extraordinary nuclear occurrence, Insuring Agreement IV, t

" Application of Pol-icy", shall not - operate to.bar. coverage a

for -bodily injury or p,roperty ; damage (a) which is caused

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'during. the policy period by the nuclear energy hazard and-(b) which is discovered and for which written claim is.made against, the insured. not later than~ twenty -(20

.the date of the extraordinary nuclear 'occurrenc)e. years after

Such waivers 'shall not' apply to, or prejudice the i

prosecution or defense of any claim _ or portion of claim

.which is not-within the protection' afforded'under 1

-(a)'

the-provisions of the policy applicable to the

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financial protection _ required of the named insured; l-(b)' the L agreement' of indemnification between the named insured. and the Nuclear Regulatory Commission made h

pursuant to Section 170 of the Atomic Energy Act of l'

1954, as amended; and (c)' the- ' limit. Lof ' liability provisions of Subsection 170e.

of-the-Atomic Energy Act of 1954, as amended.

Such waivers shall not preclude a defense based upon the failure of the claimant-to take reasonable steps to mitigate damages.

l.

4.

-Subject to -all of the limitations stated in this endorsement and in the Atomic ' Energy Act of 1954.

as amended, the waivers set forth in paragraph 1.. above shall be : judicially enforceable in accordance' with their terms l

against any insured in an action to recover damages because l~

NE-33b Page 2 of 3 l.

1 of bodily injury or property damage to which the policy l

applies as proof of financial protection.

5.

As used herein:

" extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.

" Financial protection" and

" nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.

" claimant" means the person or organization actually sustaining the bodily in or property damage and also assignees, jury includes his legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.

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>,a la.m Effective Date of this Endorsement August 20, 1988 To form a part of Policy No. NF-296 12:01 A.M.

statm ed tiene Issued to Seabrook Joint Owners Date of issue Februa ry 16, 1990 For the cribing panies By N v W

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Endorsement No.

30 countersigned by

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NE-33b Page 3 of 3

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Nucl@ar Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES

' REACTOR CONSTRUCTION AT THE FACILITY Effective August 20,.1988, it is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES ENDORSEMENT NE-33b with respect to an extraordinary nuclear occurrence occurring at the

facility, a

claimant who is employed at the facility in connection with the construction-of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where 1

the extraordinary nuclear occurrence takes place if:

(1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment.and installations at the facility, and (2) no operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear reactor, and (3) the clainant Lis not. employed in connection with the possession,

storage, use or transfer of nuclear material at the facility.

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Effective Date of this Endorsement August 20, 1988 To form a part of Policy No.

NF-296 12:01 A. M, Starward time Issued to Seabrook Joint Owners Date of Issue February 16, 1990 For the s ribing

panies, dy I mM

\\l l resident f

Endorsement No.

31 countersigned by NE-39b

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Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION Restrict {on of Companies oblication to Defend, Investicate. Necotiate or Settle Any Claim or Suit (Section 170 0. of the Atomic Energy Act of 1954, as amended)

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Effective August 20, 1988, it agreed that whenever, pursuant to subsection 170 0,

of the omic Energy Act of 1954, as

amended, an appropriate U.S.

strict Court determines that

. liability from a. single nuclear incident may exceed the limit of liability under the applicable limit of liability under subsection 170 e.(1) (A), (B) and (C) of the Atomic Energy Act of e

1954, as

amended, the companies obligations under Insuring Agreement I,

to. defend, investigate, negotiate or settle any claim or suit under the policy do not include any obligation that would necessitate or result in the companies incurring legal

costs,

. including costs of initiating, l

investigating, settling, or defending claims or su: prosecuting,

.ts, which are not authorized for payment by a court pursuant to such subsection 170 0.

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Effective Date of this Endorsement August 20, 1988 To form a part of Policy No. NF-296 12:01 A.M. Standard tire Issued to Seabrook Joint Owners Date of' issue February 16, 1990 For the su ibing Co antes By FRilSIDIDff Endorsement No.

32 Countersigned t; ___,,_,,

NE-70

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Nuclear Energy Uabilky Insurance NUCLEAR ENERGY LIABluTY INSURANCE ASSOCIATION WAIVER OF DEFENSES "NDORSEMENT (Extraordinary twelear occurrence)

The named insured, acting for himself and every other insured t

under the policy, and the members of Nuclear Energy Liability Insurance Association agree as follows:

1.

With respect to any extraordinary uclear occurrence to which the policy applies as proof financial protection and which (a) arises out of or results from or occurs in the course of the construction. possession, or operation of the facility, or (b) arises out-of or results frem or occurs in the course of the transportation of nuclear material to or from the facility.

the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not limited to (i) negligence.

(ii) contributory negligence.

(iii) assumption of risk, and (iv) unforeseeable intervening causes.

whether involving the conduct of a third person, or an act of God.

(2) any issue or defense as to charitable or governmental immunity, and

.(3) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof.

The waiver of any such issue or defense shall be effective regardless of whether such

~'ue or defense may otherwise 1

be deemed -jurisdictional er rolating to an element in the cause of action.

2.

The waivers set forth in paragraph 1. above do not apply to (a) bodily

injury, property damage or environmental damage which is intentionally sustained by the t

claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant NE-33c (1/1/90)

Page 1 of 3 5

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(b) ' bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable 4

or required to be provided under any workmen's compensation or occupational disease law:

(c) any claim for punitive or exemplary

damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under law.

3.

The waivers set forth in paragraph 1.

above shall be effective only with respect - to bodily injury, property damage or environmental damage to which the policy applies under its terms other than this endorsementt

however, that with respect to bodily injury, provided.

damage or environmental damage resulting from an property extraordinary nuclear occurrence, the provisions of COVER. AGES A and C of the policy providing coverage for bodily injury, property damage or. environmental damage caused.during the policy period by the nuclear energy hazard and.which is discovered and for which written claim is made against the insured not -later than ten (10) after the end of the years policy period shall not operate to bar coverage for bodily

injury, property damage or environmental damage (a) which is caused policy period by the nuclear energy hazard andduring the (b) which.

is discovered and for which written' claim is made against the incured not later than twenty (20 yea after the date of the extraordinary nuclear occurr)ence.rs Such waivers shall not apply to, or prejudice the prosecution or-defense of any claim or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured (b) th' e agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of 1954. as amended: and

-(c) the limit of liability provisions of-Subsection-170e.

of the Atomic Energy Act of 1954 as amended.

Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages.

E-33c-(1/1/90)

Page 2 of 3 L

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4 Subject to all of the limitations stated in this endorsement and in the Atomic Energy Act of 1954, as amended, the waivers set forth in paragraph 1. above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages because of bodily injury, property damage or environmental damage to which the policy applies as proof of financial protection.

5.

As used herein:

" extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended.

" Financial protection" and " nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.

" claimant" means the person or organization actually sustaining the bodily

injury, property damage or environmental damage and also includes his assignees.

legal representatives and other persons or erganizations entitled to bring an action for damages on account of such injury or damage.

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t wu Effective Date of this Endorsement January 1. 1990 To nrm a part of Policy No. NF-296 12:01 A. M. Storeard time i

Issued to Seabrook Joint Owners Date of Issue February 16, 1990 For the S ribing C *panies, By 1__e y Prhididef

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Endorsement No.

33 Countersigned by f4E-33c (1/1/90)

Page 3 of 3

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Nuclear Energy Liability Insurance i

NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION l

SUPPLEMENTARY ENDORSEMENT WAIVER OF DETENSES REACTOR CONSTRUCTION AT THE FACILITY i

It is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DCTENSES ENDORSEMENT NE-33c with to an extraordinary nuclear occurrence occurring at the respect

facility, a

claimant who is employed at the facility in connection with the const ruc tion of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:

(1) the claimant is employed exclusively in connection with the construction of a nuclear reactor including all related equipment and installations at the facility, and (2) no operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear reactor, and (3) the claimant is not employed in connection with the possession, storage,.use or transfer of nuclear material at the facility.

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NF-296 12:01 A. M. stardard t tme Zssued to Seabrook Joint Owners

' Date of Issue February 16, 1990 For the Sube -ibing Com antes, 4

By G r/ M tT O ' h Endorsement No.

34 Countersigned by NE-39c (1/1/90)

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Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AMENDATORY ENDORSEMENT (Facility Form) l It is agreed that:

1.

INSURING AGREEMENT I is replaced by the following:

I C0VERACE A - LIABILITY To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as covered damages

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because of bodily injury or property damage, or as covered environmental cleanup costs because of environmental damage.

This Coverage applies only to bodily injury.

property damage or environmental damage caused during the policy period by the nuclear energy hazard, and which is discovered and for which written claim is made against the insured, not later than ten (10) years after the end of the policy period.

The companies shall have the right and duty to defend any j

claim or suit against the insured alleging such injury.or damage. and seeking damages or costs - which are payable under the terms of this policy: but the companies may make such investigation, negotiation and settlement of the claim or suit as they deem expedient.

The companies' duty to defend shall be limited.

as described in INSURING AGREEMENT IV. if the claim or suit also seeks any of the following. which in no event shall be construed as covered by this policy:

f (1) damages for on-site property damaget (2) recovery of on-site cleanup costs or any other cleanup costs except covered environmental cleanup costst 4

(3)'

performance of an insured's environmental protection obligations or on-site cleanup obligations or (4) any other relief or recovery except payment of covered damages or covered environmer.tal cleanup costs.

The companies ' duty to defend claims or suits ends when the limit of their liability has been exhausted pursuant to CONDITION 3.

Subject to INSURING AGREEMENT IV. the companies shall pay, i

with respect to any claim-or suit they defend. the costs L

incurred in the defense, including (1) costs taxed against the insured in any such suit and interest on any judgment thereint (2) premiums on appeal bonds and bonds to release attachments in any such suit, but without obligation to apply for or furnish such bondst

1 (3) reascnable expenses.

other than loss of earnings, incurred by the insured at the companies' request.

COVERAGE B

- DAMAGE TO PROPERTY OF AN INSURED AWAY FROM THE FACILITY With respect to property damage caused during the policy period by the nuclear energy hazard to the property of an inrured which is away from the facility, to pay to such insured those sums which such insured would have been legally obligated to pay as covered damages therefor, had such property belonged to another.

COVERACE O - SUBROCATION - 0FFSITE EMPLOYEES With respect to bodily injury caused during the policy period by the nuclear energy hazard to any employee of an insured, and which is discovered and for which written claim is made against the insured, not later than ten (10) years af ter the end of the policy period, to pay to the workmen's compensation carrier of such insured as follows:

All sums which such carrior would have been entitled to recover and retain as damages from another _ person.or organization, had such person or organization alone been legally responsible for such bodily injury, by reason of the rights acquired by subrogation by the payment of the benefits required of such carrier under the applicable workmen's compensation or occupational. disease law.

An employer who is a duly qualified self-insurer under such

-law shall be deemed to be a workmen's compensation carrier within the meaning of this coverage.

This coverage does not apply to bodily injury to any person _ who is employed at and in connection with the facilityt nor.shall it constitute workmen's compensation i

insurance as required under the laws of any state.

2.

INSURING AGREEMENT II is replaced by the following:

II DEFINITION OF INSURED The unqualified werd " insured" includes (a) the named insured and (b) any other person or organization with respect to his legal responsibility for covered damages or covered. environmental cleanup costs because of bodily-injury, property-damage or environmental damage. caused by the nuclear energy hazard.

Subdivision -(b) above does not include as an insured the United-States of America or any of its agencies, except the Tennessee Valley Authority.

Subject to CONDITION 3 and the other provisions of this policy, the insarance applies separately to each insured j

against whom claim is made or suit is brought.

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INSURING AGREEMENT III is replaced by the following:

III DEFINITIONS Wherever used in this policy:

" bodily injury" means bodily injury, sickness or disease, including death resulting therefrom, sustained by any person.

" covered damages" means damages because of bodily injury, or property damage to which this policy applies covered damages do not include environmental cleanu;r'p'at costs or on-site cleanup costs,

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" covered environmental cleanup costs" meIs only those environmental cleanup costs which_ are incurred directly for monitoring, testing for, cleaning sp neutralizing or containing environmental damage es the result of an extraordinary nuclear occurrence or a transportation incidents but covered environmen'.a1 cleanup costs do not include on-site cleanup costs.

" disposal site" means any 9tructure, basin, excavation, premises or place preparea as a dump or site for the disposal of waste materials of a general nature, but which may also be used for che disposal of waste materials containing small amounts of nuclear material.

" environment" includes

land, the atmosphere.. and all watercourses, bodies of water and natural resources, whether on, above or below the surface of.the ground.

" environmental cleanup costs" include _ all loss, cost or expense arising out of any governmental decree, ordor or directive (other than an award of covered damages in an action at law) requiring' or requesting a

person or organization to undertake or pay for monitoring, testing for, cleaning up, neutralizing or containing contamination of the environment, whether the contamination is on, above or below the surface of the ground.

'" environmental damage" means contamination cf the environ-ment by nuclear material.

" environmental protection obligations" include all obligations of any person or organization

-(1) relating to ' the protection of the environment from contamination or imminent danger of contamination, and' (2) imposed by any governmental

laws, regulations or ordinances.

" extraordinary nuclear occurrence" means an event which the United States Nuclear Regulatory Commission has determined to be an extraordinary-nuclear occurrence as 3

d0 fined in the Atomic Energy Act of 1954 or in any law amendatory thereof.

" governmental" refers to

federal, state and local governments and authorities, including courts, agencies and political subdivisions thereof.

" indemnified nuclear facility" means (1)

"the facility" as defined in any Nuc1 car Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters, or (2) any other nuclear facility, if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, with respect to any activities or operations conducted thereat.

" insured shipment" means a shipment of source material, special nuclear material, spent fuel, waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content, herein called " material,"

(1) to the facility from any location except an indemnified nuclear

facility, but only if the transportation of the material is not by predeter-mination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transpor-tation, or (2) from the facility to any other location. but only until the material is removed from a transporting conveyance for any purpose other thsn the continuation of its transportation.

" nuclear energy hazard" means the radicactive, toxic.

. explosive or other hazardous properties of nuclear material, but only if (1) the nuclear material is at the facility or has been discharged or dispersed therefrom without intent to relinquish possession or custody thereof to any other person or organization, or (2) the nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation, including handling and temporary storage incidental thereto, within (a) the territorial limits of the United States of l

America, its territories or possessions, or Puerto Ricot or (b) international waters or airspace, provided that the nuclear material is in the course of transportation between two points located within 1

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tho torritorial limits described in (a) above and there is no deviation in the course of the transportation for the purpose of going to any other country, state or nation, except for the purpose of going to or returning from a port or place of refuge as the result of an emergency.

" nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy.(Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters.

The term " nuclear facility" also means (1) any nuclear reactor, (2) any equipment or device designed or used for (a) separating the 1sutopes of uranium or plutonium, (b) processing or utilizing spent fuel, or (c) handling, processing or packaging waste.

(3) any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235 H) any structure, basin, excavation, premises or place prepared or used for the storage or disposal 'of

waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for.such operations.

" nuclear material" means source material, special nuclear material or byproduct material.

" nuclear reactor" means any apparatus designed or used to sustain nuclear fission or. a self-sustaining chain reaction: or to contain a critical' mass -of fissionable material.

"on-site cleanup costs" include all loss, cost or expense arising out of.on-site cleanup obligations.-

"on-site cleanup obligations" include all obligations of any person or organization, imposed by common law or.

otherwise, to undertake or pay. for - monitoring, testing for, cleaning up, neutralizing or containing contamination by nuclear material at the facility, whether_ the_ material is on, above or below-the surface of the ground.

"on-site property damage" includes all property damage to any property.at the facility, whether the property is on.

above. or. below the surface of the ground, other than aircraft, watercraft or vehicles licensed for highway use, 5

7 provided such -*rcraft, watercraft or vehicles are not used in coractioc vith the operation of the facility.

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" property damage" m ans physical injury to or destruction or radioa :tive con,t; mination of property, and loss of use of propetty so iJ;ured, destroyed or contaminated, and loss of uss cf pr',perty while evacuated or withdrawn from use becauss r.t.sibly so contaminated or because of imminent danger of contamination.

" 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 any nuclear reactor.

"the facility" means the facility described in-the declarations and-includes the location designated in Item 3 of the declarations and all property and operations at

-such location.

" transportation. incident" means a discharge or dispersal of nuclear material from an insured shipment caused by collision or upset of the transporting conveyance, or an accident that breaks open, punctures or ruptures the shipping containers or containment thereon but only if both the discharge or dispersal and the collision, upset or accident take. place away from any nuclear facility and away from any disposal site. and both occur in the course of the transportation, including handling and temporary storage incidental thereto.

" waste" means any waste material (1) containing byproduct material and (2) resulting, from the operation by any person or organization of any nuclear facility included within the definition of nuclear f acility under paragraph (1) or (2) thereof.

4 INSURING AGREEMENT IV is replaced by the following and INSURING AGREEMENT IV-A added by the

" Amendment of Coverage Endorsement for Workers Claims (Facility Form)"

continues to apply:

IV LIMITED DEFENSE OF PARTIALLY COVERED CLAIMS OR SUITS The following provisions apply with respect to any partially covered claim or suit for which the companies' duty to defend has been limited by INSURING AGREEMENT I:

(1)

The companies will defend the claim or suit unless the companies and the first named insured mutually agree on a different defense arrangement.

By making 6

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such a dofonse, the companies shall not be considered as having waived their rights under this policy to deny payment or reimbursement of the items not covered.

(2)

As socn as practicable, the first named insured, acting on behalf of all incureds, and the companies shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.

(3)

The companies' share of defense costs shall not exceed the portion of the total defense costs that represents the costs which would be reasonably and necessarily incurred in the defense of the claim or suit in the absence of any claim or demand for the items not covered.

(4)

The companies shall have a right to contribution from the first named insured for all defense costs as they are incurred in excess of the amount of the companies'

share, including reimbursement by the first named insured of all such excess costs paid by the companies.

(5)

If the companies and the first named insured cannot agree on the companies' share of defense costs, the dispute shall be submitted, as a condition precedent to any right of recovery on this policy, to arbitra-tion for a final and binding resolution, as provided in Condition 19.

5.

In EXCLUSIONS (d) and (e), and in all endorsements to this policy relating thereto, the words

" bodily injury or property damage" damage or environmental damage."are replaced by " bodily injury property 6.

EXCLUSION (f) is replaced by the following exclusion:

[This policy does not apply:)

(f) to on-site property damage 7.

In CONDITION -3 and in all endorsements to this policy modifying the dollar amount of the limit of liability stated in Item 4 of the declarations, the words " bodily injury or property damage" are replaced by " bodily injury.

property damage or environmental damage."

8.

In CONDITION A, and in all endorsements to this policy modifying the dollar amount of the total aggregate liability of the companies with respect to a common occurrences (a) the words

" bodily injury or replaced by' " bodily injury, property damage" are property damage or environmental damage" and (b) the words " bodily injury and property damage" are replaced by

" bodily injury, property damage and environmental damage."

7

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9.

In CONDITIONS 5. 11. 15 and 18 this policy relating thereto, and in all ondorsements to property damage" are replaced bthe words " bodily injury or

]

damage or environmental damage."y Hbodily injury, property 10.

CONDITION 19. DECLARATIONS. is renumbered CONDITION 11.

The following CONDITION is added to the policy:

19 ARBITRATION OF OF INSURING AGREEMENT IVDISPUTES RELATING TO T All such disputes subject to paragraph (5) of INSURING AGREEMENT IV shall be submitted to a Board of Arbitration (the " Board") for a final and binding resolution of the dispute.

There shall be two parties to the arbitration:

named insured.

the first duly authorizedacting on behalf of all insureds as their representative, and Nuclear Energy Liability Insurance Association, companies as their duly authorized representative. acting on behalf of the 1

Except to the extent the parties otherwise, the following principles will apply: mutually agree (a)

The arbitration will take place in New York.

New York, and will be of New York.

governed by the laws of the State (b)

Either party may begin the process of arbitration by 1

giving notice to the other party in writing intention to do of its and the so name of the arbitrator that it has appointed.

(c)

The - other party shall then appoint in writing an arbitrator, and the arbitrators chall appoint in The umpire shall act as chairman of the Board. wri

'i (d)

If a-party fails to name its arbitrator within thirty (30) days of the other party's written request that it do so, the requesting appoint an arbitrator for the party in default. party may (e)

If the two arbitrators fail to agree on the selection of an umpire within thirty (30) they have both been appointed, each of them shall days after name two, choice shall be made by drawing lots.of whom the other sha The (f)

The arbitrators and umpire shall be executive officers or former executive officers of insurance companies licensed to do business in the United States or of _ organizations designated as the first named insured under a Nuclear Energy Liability Policy issued by Nuclear Energy Liability ' Insurance I

Association or Mutual Atomic Energy Liability Underwriters: provided that the current employees of

(

the following shall not be eligible for service without the consent of both parties:

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(1) any party or likely party to the underlying claim or suitt (2)

American Nuclear Insurers.

KAERP Reinsurance Association or their members: or (3) any other insurer or reinsurer which has casualty _ insurance or reinsurance in force on any of the foregoing which may be materially affected by the Board's decision.

(g)

Within thirty (30) days after the appointment of the umpire, each party shall submit its case in writing to the Board.

(h)

The Board shall determine its rules of procedure, and the nature and extent of any discovery. testimony, examination or cross-examination of witnesses and oral argument permitted.

The decision of any two members of the Board shall be final and binding on all parties.

All discrwery, submissions of evidence, hearing of witnesses and argument shall be completed within sixty (60) days of the appointment of the umpire, provided the Board may grant one extension of thirty (30) days.

(1)

The arbitrators and the. umpire are not to be bound by any strict rules of legal procedure, evidence or legal precedents.

They shall, however. be governed by the terms of this policy, and shall have no power to add to or change its provisions.

Subject to this admonition.

they shall interpret the relevant provisions of this policy as an honorable business agreement, and shall be entitled to decide.

in accordance with such provisions together with the other materials submitted to them. what they think is the fair and right thing to be. done between the parties from a business point of view.

Without favoring-the interest of either party.

(j)

The Board-shall make its award in writing within thirty (30) days after the close of the period, including any extension granted, described in paragrhph (h) above.

(k)

If the Board f ails to make an award within the time prescribed by paragraph (j) above, then unless an-extension is agreed to by the parties, a new arbitration shall. be commenced and' completed in y

accordance with the ' procedure set out in paragraphs (a) through (j) above.

(1)

The award of the Board signed by any two members shall be final, not subject to appeal and binding on all' parties, including all policy and all insureds thereunder.-insurers subscribing the The award-shall be treated as a matter involving interstate commerce, and may be filed or confirmed in any court of competent jurisdiction, state or

federal, and judgment thereon entered and enforced, in accordance with the law and practice of the forum.

4 9

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(m)

Unless the Board decides otherwise. each party shall pay the exfxnses of the arbitrator appointed by or for it and one half of tha other costs of arbitration.

(n)

If an arbitr.* tor or umpire is unable or unwilling to a new a.bitrator or umpire, as the case may be, j

act.

i shall be app 31nted to act in his or her place, in accordance with the provisions set forth above.

(o)

All materials relevant to the arbitration shall be submitted to the Board in triplicate and the filing party shall send simultaneously a copy thereof to the opposing party.

12.

This endorsement applies to all claims for damages costs.

expenses or other relief or recovery for which coverage is sought under this policy, and which are first made in writing against any insured on or af ter the effective date of this endorsement stated below.

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01 A.M. Standard Time 8ssued to Seabrook Joint Owners Dase of Issue February 16, 1990 For the su ribing c panies

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By.

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i PRESIDENT Endorse =ent No 35 countersigned by iE-71 (1/1/90)

Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear occurrence)

Effective August 20, 1988, the named insured, acting for himself and every other insured under the policy, and the members of i

Nuclear Energy Liability Insurance Association agree as follows:

l 1.

With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or (b) arises aut of or results from or occurs in the course of the slahsportation of nuclear material to or from the facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not limited tol (1) negligence, (ii) contributory negligence, (iii) assumption of risk, and (iv) unforeseeable intervening

causes, whether involving the conduct of a third person, or an act'of God, (2) any issue or defense as to charitable or governmenttl immunity, and (3) any issue or defense based on any statute of limitations. if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof.

The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action.

2.

The waivers set forth in paragraph 1.

above do not apply to i

NE-33b Page 1 of 3

l (a) bodily injury or property damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant; (b) bdily injury sustained by any claimant who is employed at the site of and in connection with the activity whee the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be pro"ided under any workmen's compensation or occupational disease law; (c) any claim for punitive or exemplary damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual

damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under law.

3.

The waivers set forth in paragraph 1.

above shall be effective only with respect to bodily injury or property damage to which the policy applies under its terms other than this endorsement; provided, however, that with respect to bodily. injury or property _ damage resulting from an extraordinary nuclear occurrence, Insuring Agreement IV,

" Application of Policy" shall not operate to bar coverage for bodily injury or p;roperty damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty 20 the date of the extraordinary nuclear occurr(enc)e. years af ter Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection. afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured (b) the-agreement of indemnification between -the named insured and the Nuclear Regulatory Commission made pursuant to section 170 of the Atomic Energy Act of 1954,_as amended;-and (c) the limit of liability provisions of Subsection 170e.

of the Atomic Energy Act of 1954, as amended.

Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages.

4.

S_ubject to all of the limitations stated in this endorsement and.in the Atomic Energy Act of

1954, as amended, the waivers set forth in paragraph 1. above shall be judicially enforceable in accordance with their terms l

against any insured in an action to recover damages because 1

NE-33b Page.2 of 3

of bodily _ injury or property damage to which the policy applies as proof of financial protection.

5.

As used hereint

" extraordinary nuclear occurrence" means an event whi h th Nuclear Regulatory Commission has determined to be an c

e extraordinary nuclear occurrence as defined in the Atomic Energy Act of 1954, as amended,

" Financial protection" and

" nuclear incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.

" claimant" means the person or organization actually sustaining the bodily in assignees, jury or property damage and also includes his legal representatives and other persons or organizations entitled to brin an action for damages on account of such injury or damage.g p

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._ To form a part of Policy No. _ NF-296

-12:01 A.M. Starcard tine Issued to Seabrook Joint Owners Date of issue February 16, 1990 For the cribing

.panies By l

=%

\\Plesident Endorsement No.

30 countersigned by NE-33b Page_3 of 3

l Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION 1

SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY

-l Effective August-20, 1988, it is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES ENDORSEMENT NE-33b with respect to an extraordinary nuclear occurrence occurring at the

facility, a

claimant who is i

employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place it:

(1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including i

all related equipment and installations at the facility, and (2) no operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear reactor, and (3) the claimant is not employed in connection with the possession,

storage, use or transfer of nuclear material at the facility.

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Effective Date of this Endorsement August 20, 1988 To form a part of Policy No.

NF-296 12:01 A. O starmard tine Issued to Seabrook Joint Owners Date of Issue February 16, 1990 For the s ribing

panies, l

dy l A A --

\\fpresident Endorsement No.

31 Countersigned by l

NE-39b

Nuclear Energy Liability Insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION 4

Restriction of Companies oblication to Defend, Inventicate, Necotiate or Settle Any Claim or Suit (Section 170 0. of the Atomic Energy Act of 1954, as amended)

Ef fective August 20, 1988, it is agreed that whenever, pursuant to subsection 170 0,

of the Atomic Energy Act of 1954, as ar, ended, an appropriate U.S.

District Court determines that liability from a single nuclear incident may exceed the limit of liability under the applicable limit of liability under subsection 170 e.(1) (A), (B) and (C) of the' Atomic Energy Act of 1954,. as

amended, the companies obligations under. Insuring Agreement I,

to defend, investigate, negotiate or settle any l

claim or suit under the policy do not include any chligation that would necessitate or result in the companies incurring legal

costs, including costs of. initiating prosecuting, investigating, settling, or defending claims or, suits, which are not authorized for payment by a court pursuant to such subsection.

170 0.

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-this Endorsement August 20, 1988-To form a part of Policy No. NF-296 12:01 A.M.

$tandard. time

Issued'.to-Seabrook Joint ~0wners Date of issue February 16, 1990 For the su ibing Co antes-l By PRASIDDfT Endorsement No.

32 Countersigned by

- NE 70

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Nuclear Energy Liability insurance l

o NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION I

WAIVER OF DEFENSES ENDORSEMENT i

(Extraordinary Nuclear occurrence) l The named insured, acting for himself and every other l'nsured under the policy, and the members of Nuclear Energy Liability Insurance Association agree as follows:

1.

With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in the course

'i of the construction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility.

the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the insurecs. including but not limited tot (1) negligence.

(ii) contributory negligence.

(iii) assumption of risk. and (iv) unforeseeable intervening

causes, whether involving the conduct of a third person, or an act of God.

(2) any issue or defense as. to charitable or governmental immunity, and (3) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof.

The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action.

2.

The waivers set forth in paragraph 1. above do not apply to (a) bodily

injury, property damage or environmental damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant:

-NE-33c (1/1/90)

Page 1 of 3

l i

(

)

(b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's t

compensation or occupational disease lawi (c) any claim for punitive or exemplary

damages, provided.

with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature.

this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under law.

3.

The waivers set forth in paragraph 1.

above shall be effective only with respect to bodily injury.

property damage or environmental damage to which the policy applies under its terms other than this endorsement

however, that with respect to bodily injury, provided.

damage or environmental damage resulting from an property extraordinary nuclear occurrence, the provisions of COVERAGES A and C of the policy providing coverage for bodily injury, property damage or environmental damage caused during the policy period by the nuclear energy hazard and which is discovered and for which written'elaim is made against the insured not later than ten (10) years after the end of the policy period shall not operate to bar coverage for bodily injury, property damage or environmental damage (a) which is caused. during the policy period by-the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty (20 yea after the date of the extraordinary nuclear occurr)ence. rs Such waivers shall not apply to.

or prejudice the prosecution or defense of any claim or portion of claim

-which is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured:

(b)- the agreement of indemnification between the named t

insured and the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy-Act of 1954, as amended: and (c) the limit of liability provisions of Subsection 170e.

of the Atomic Energy Act of 1954,-as amended.

Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages.

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I NE-33c (1/1/90)

Page"2 of 3 1

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1 4

Subject to all of _ the limitations stated in' this endorsement and -in the Atomic Energy Act of 1954 as amended, the waivers set forth in paragraph 1. above shall be-judicially enforceable in accordance with their terms

]

against any insured in an action to recover damages g

because of bodily injury, property damage or environmental l

damage to which the policy applies as proof of financial protection.

i 5.

As used herein:'

-" extraordinary nuclear occurrence" means an event which j

the Nuclear Regulatory Commission.has determined to be an

. extraordinary nuclear occurrence as defined in the Atomic

-Energy Act of 1954, as amended.

j

" Financial protection" and " nuclear. incident" have the meanings given them in the Atomic Energy Act of 1954, as i

amended-

" claimant" 'means the person or organization. actually I

sustaining. the bodily

injury, property damage et i

environmental damage and also includes his assignees.

legal representatives and other persons or organizations entitled to bring an action for damages on account of such injury or damage.

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.this Endorsement January 1, 1990 To form a part of Policy No. NF-296 12:01 A. M. Standard time -

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. Issued:to Seabrook: Joint owners

'Date of Issue'

. February 16, 1990 For the S ribing C panies,

. By

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' Endorsement No.

33 Countersigned by

-NE-33c (1/1/90)_

Page 3 of 3

Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY It is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES ENDORSEMENT NE-33c with respect to an extraordinary nuclear occurrence occurring at the

facility, a

claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary _

nuclear. occurrence takes place if:

(1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related. equipment and installations at the facility, and (2) no operating license has been. issued by the Nuclear Regulatory Commission with respect to the nuclear reactor, and (3) the claimant is not employed in connection with the possession,

storage, use or transfer of nuclear material at the facility.

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NF-296 r

n 12:0) A. M. Stansard tithe Issued to Seabrook Joint Owners Date'of Issue February 16, 1990 For the Sub ibing Com antes, By Pr h

Endorsement No.

34 countersigned by 1

NE-39c (1/1/90)

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-i Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION AMENDATORY ENDORSEMENT (Facility Form)

It is agreed that:

1.

INSURING AGREEMENT I is replaced by the following:

I COVERAGE A - LIABILITY

'To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as covered damages because of bodily injury or property damage, or as covered environmental cleanup costs because of environmental damage.

This covecage applies only to bodily injury, property damage or environmental damage caused during the policy period by the nuclear energy hazard, and which is discovered and for which written claim is made against the insured, not later than ten (10) years after the end of the policy period.

The companies shall have the right and duty to defend any claim or suit against the insured alleging such injury or damage, and seeking damages or costs which are payable under the terms of this policy: but the companies may make such investigation, negotiation and settlement of the claim or suit as they deem expedient.

The companies' duty to defend shall be

limited, as described in INSURING AGREEMENT IV. if'the claim or suit also seeks any of the following, which in no event shall be construed as covered by this policy:

(1) damages for on-site property damages (2) recovery of on-site cleanup costs or any other cleanup costs except covered environmental cleanup costs:

(3) performance of an insured's environmental protection obligations or on-site cleanup obligations or (A) any other relief or recovery except payment of covered damages or covered environmental cleanup Costs.

The companies' duty to defend claims or suits ends when the limit of their liability has been exhausted pursuant to CONDITION 3.

Subject to INSURING AGREEMENT IV. the companies shall pay.

l with respect to any claim or suit they defend, the costs incurred in the defense, including (1) costs taxed against the insured in any such suit and interest on any judgment therein:

(2) premiums on appeal bonds and bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds:

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(3) reasonable expenses.

other t.han loss of earnings.

incurred by the insured at the companies' request.

COVERACE B - DAMAGE TO PROPERTY OF AN INSURED AWAY FROM THE FACILITY With respect to property damage caused durf ng the policy period by the nuclear energy hazard to the property of an insured which is away from the facility, to pay to such insured those sums which such insured would have been legally obligated to pay as covered damages therefor. had such property belonged to another.

COVERACE C - SUBROGATION - OFFSITE EMPLOYEES With respect to bodily injury caused during the policy period by the nuclear energy hazard to any employee of an insured, and which is discovered and for which written claim is made against the insured, not later than ten (10) years after the end of the policy period, to pay to the workmen's compensation carrier of such insured as follows:

All sums which such ' carrier would have been entitled to recover and retain as damages from another person or organization. had such person or organization alone been legally - responsible for such bodily injury, by reason of the rights acquired by subrogation by the payment of the benefits required of such carrier under the applicable workmen's compensation or occupational disease law.

An employer who is a duly qualified self-insurer under such law shall be deemed to be a workmen's compensation carrier within the meaning of this coverage.

This coverage does not apply to bodily injury to any person who is employed at and in connection with the facility nor shall it ' constitute workmen's compensation insurance as required under the laws of any state.

2.

INSURING AGREEMENT II is~ replaced by the following:

II DEFINITION OF INSURED The unqualified word " insured" it.cludes (a) the named insured and (b) any other person or. organization with respect to his legal responsibility for covered damages or covered environmental cleanup costs because of bodily

- injury, property damage or environmental damage caused by the nuclear energy hazard.

Subdivision (b) above does not include as an insured the i

United States of America or any of its agencies, except the Tennessee Valley Authority.

Subject to CONDITION 3 and the other provisions of this l-policy, the insurance ap lies separately to each insured p

against whom claim is made or suit is brought.

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3.

INSURING AGREEMENT III is replaced by the following:

III DEFINITIONS Wherever used in this policy:

" bodily injury" means bodily injury, sickness or disease, including death resulting therefrom, sustained by any person.

" covered damages" means damages because of edily injury or property damage to which this policy appliest but covered damages do not include environmental cleaaup costs or on-site cicanup costs.

" covered environmental cleanup costs" means on1) those environmental cleanup costs which are incurred directly for me 'toring, testing for, cleaning up, neutralizing or containing environmental damage as the result of an extraordinary nuclear occurrence or a transportation incidents but covered environmental cleanup costs do not include on-site cleanup costs.

" disposal site" means any s t ructure, basin. excavation, premises or place prepared as a dump or site for the disposal of waste materials of a general nature, but which also be used for the disposal of waste materials may containing small amounts of nuclear material.

" environment" includes

land, the atmosphere.

and all watercourses, bodies of water and natural resources, whether on, above or below the surface of the ground.

" environmental cleanup costs" include all loss, cost or expense arising out of any governmental decree, ordor or directive (other than an award of covered damages in an action at law) requiring or requesting a person or organization to undertake or pay for monitoring, testing for, cleaning up, neutralizing or containing contamination of the environment, whether the contamination is on, above or below the surface of the ground.

" environmental damage" means contamination of the environ-ment by nuclear material.

" environmental protection obligations" include all obligations of any person or organization (1) relating to the protection of the environment from contamination or imminent danger of contamination, and (2) imposed by any governmental

laws, regulations or ordinances.

" extraordinary nuclear occurrence" means an event which the United States Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as 3

l

4 defined in the Atomic Energy Act of 1954, or in any law amendatory thereof.

" governmental" refers to federal.

state and local governments and authorities, including courts, agencies and political subdivisions thereof.

" indemnified nuclear facility" means (1)

"the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters, or (2) any other nuclear facility, if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof.

with respect to any activities or operations conducted thereat.

" insured shipment" means a shipment of source material, special nuclear material, spent fuel, vaste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content, herein called " material."

(1) to-the facility from any location except an indemnified nuclear

facility, but only if the transportation of the material is not by predeter-mination to be interrupted by - removal of the material from a transporting conveyance for any purpose other than the continuation of its transpor-tation, or (2) from the l'acility to any other location, but only until the material is removed from a transporting conveyance for any purpose other than the continuation of its transportation.

" nuclear energy hazard" means the radioactive,

toxic, explosive or other hazardous properties of nuclear material, but only if (1) the nuclear material is at the facility or has been discharged or dispersed therefrom without intent to

-relinquish possession or custody thereof to any other-person or ceganization, or (2) the nuclear material is in an-insured shipment which is away from any other nuclear "acility and is in the course of transportation.

including handling and temporary storage incidental thereto, within (a) the territorial limits of the United States of

America, its territories or possessions, or Puerto Ricot or (b) international waters or airspace, provided that the nuclear material is in the course of transportation between two points located within 4

the territorial limits described in (a) above and there is no deviation in the course of the transportation for the purpose of going to any other country, state or nation, except for the purpose of going to or returning from a port or place of refuge as the result of an emergency.

" nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters.

The term " nuclear facility" also means (1) any nuclear reactor, (2) any equipment or device designed or 'ceed for (a) separating the isotopes of uru '..m or plutonium, (b) processing or utilizing spent fuel, or (c) handling, processing or packaging waste,

'3) any equipment or device used for the procubsfng, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the preuiseo vbore such equipment or device is located consists of cr contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250

{

grams of uranium 235, (4) any structure, basi-o..w"ation, premises or place l

prepared or used er th storage or disposal of

waste, and includes the site on shi d any of the foregoing is located, all operations cc.nduc id on such site and all premises used for such operat i ns.

" nuclear material" means sourse material, special nuclear material or byproduct material.

" nuclear reactor" means any apparatus designed or used to sustain nuclear.fis.nion or a

self-sustaining chain reaction or to contain a critical mass of fissionable material.

i "on-site cleanup costs" include all loss, i

cost or expense arising out of on-site cleanup obligations.

"on-site cleanup obligations" include all obligations of any person or organization, imposed by common law or otherwise, to undertake or pay for monitoring, testing for, cleaning up, neutralizing or containing contcuination by nuclear material at the facility, whether the material is on, above or below the surface of the ground.

l "on-site procerty damage" includes all property damage to any property at the facility, whether the property is on.

l above or below the surface of the ground, other than aircraft, watercraf: or vehicles licensed for highway use, 5

-. g provided such _ aircraf t, watercraft or vehicles are not used in connection with the-operation of the facility.

" property damage" means physical injury to or destruction or radioactive contamination of property. and loss of use of property so - injured, destroyed or contaminated, and loss-of use of property while evacuated or withdrawn from use because possibly. so contaminated or because of imminent danger of contamination.

" source -material,"

"special nuclear material,"

and i

" 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'any nuclear reactor.

"the facility" means the facility described in the declarations and includes the location designated in Item 3 of the declarations and all property and operations at such location.

" transportation incident" means a discharge or dispersal

- of-nuclear material from an insured shipment caused by collision or upset of the transporting conveyance, or an accident that breaks

open, punctures or ruptures the shipping containers or containment thereont.but only if both the discharge or. dispersal and the collision, upset or accident take place away from any nuclear facility and away from any disposal site, and both occur in the course of -the. transportation, including handling and temporary storage incidental thereto.

" waste" means any waste material (1) containing byproduct material and (2) resulti_ng from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under_ paragraph (1): or '2) thereof.

4..

INSURING L.

' MENT IV is replaced by the folicwing and INSURTNG AGREEMENT IV-A added by the

" Amendment of Coverage Endorsement for Workers Claims (Facility Form)"

continues to apply:

IV LIMIT 2D DEFENSE-OF PARTIALLY COVERED CLAIMS OR SUITS The following provisions apply with respect to any partially covered claim or suit for which the companies' duty to defend has been limited by INSURING AGREEMENT I:

'(1)

The companies will defend the claim or suit unless the companies and the first named insured mutually agree on a different defense arrangement.

By making 6

l-

e such a defense, the companies shall not be considered as. having waived their rights under this policy to deny payment or reimbursement of the items not covered.

(2)- As soon as practicable, the first named insured, acting on behalf of all insureds, and the companies shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.

(3)-

The companies' share of defense costs shall not exceed the portion of the total defense costs that

' represents the costs. which would be reasonably and necessarily incurred in the defense of the claim or suit in the absence of any claim or demand for the items not covered.

-(4)

The companies shall have a right to contribution from the first named insured for all defense costs as they are incurred in excess of the amount of the companies'

share, including reimbursement by the first named insured of all such excess costs paid by the companies..

(5)

If the companies and the first named insured cannot agree on the companies' share of defense costs, the dispute shall be submitted, as a condition precedent to any right of recovery on this policy, to arbitra-tion for a final and binding resolution, as provided in Condition 19.

5.

In EXCLUSIONS (d) and (e), and in all endorsements to this policy relating thereto, the words

" bodily injury or property damage" are replaced by " bodily injury, property damage or environmental damage."

'6.

EXCLUSION (f)_ is replaced by the following exclusion:

(This policy does not apply:)

(f) to 'n-site property damage 7.

In CONDITION. 3, and in all. endorsements to this policy modifying -the dollar amount of the limit of liability stated in Iter 4 of the declarations, the words " bodily.

injury or property damage" are replaced by " bodily injury, property damage or environmental damage."

8.

In CONDITION 4, and in all endorsements to this policy modifying-the dollar amount of the total aggregate l'

liability of the companies with respect to a common occurrence:-

(a)- the words

" bodily injury replaced - by

" bodily injury, property damage" are or property damage or environraental damage": and L

(b) the words " bodily injury and property damage" are i

replaced by

" bodily injury, property damage and environmental damage."

7 l

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a 2

e 4

9.

In CONDITIONS D. 11, 15 and 18, and in all endorsements to this policy-relating thereto, property damage" are replaced bthe words " bodily injury or damage or environmental damage."y " bodily injury, property 10.

CONDITION 19 DECLARATIONS, is renumbered CONDITION 20, 11.

The following CONDITION is added to the policy:

19 ARBITRATION OF DISPUTES RELATING TO THE APPLI OF INSURING AGREEMENT IV All such disputes subject to paragraph (5) of INSURING AGREEMENT IV shall be submitted.to a Board of Arbitratio (the " Board") for a final and dispute.

binding resolution of the There shall be two parties to the arbitration:

named insured, the first acting on behalf of all insureds as their duly authorized representative, and Nuclear Energy Liability Insurance Association, companies as their duly authorized representative. acting on behalf of the Except to the extent the parties otherwise, the following principles will apply: mutually agree (a)

The arbitration will take place in New York, New-York, and will be governed by the laws of the State of-New York.

(b)

Either party may begin the process of arbitration by giving notice to the other party in writing of its intention to do so and the name of the arbitrator that at has appointed.

(c)

The other party shall then appoint in writing an arbitrator, and the arbitrators shall appoint in writing an umpire before they be The umpire shall act as ca airman gin the - arbitration.

(d) of the Board.

If a party fails to name its arbitrator within thirty- (30) days of the other party's written request that it do so, the requesting party may appoint an arbitrator for the party in default.

(e)

If the two arbitrators fail to agree on the selection of.an umpire within thirty (30) they have both been appointed, each of them shall days after name two, choice shall be made by drawing. lots.of whom the other-shal The (f)

The arbitrators and umpire shall be executive officers or former executive officers of insurance companies licensed to do business in the United States or of organizations designated as the first named insured under a Nuclear Energy Liability Policy issued by Nucle a r.

Energy Liability ' Insurance Association or Mutual Atomic Energy Liability Underwriters provided that the current employees of the following shall not be without the consent of both parties: eligible for service 8

(1, any party or likely party to the underlying claim or suitt (2)

American Nuclear Insurers, MAF.Rp Reinsurance Association or their memberst or (3) any other insurer or reinsurer which has casualty insurance or reinsurance in force on any of the foregoing which may be materially affected by the Board's decision.

(g)

Within thirty (30) days after the appointment of the umpire, each party shall submit its case in writing to the Board.

(h)

The Board shall determine its rules of procedure, and the nature and extent of any discovery, testimony, examination or cross-examination of witnesses and oral argument permitted.

The decision of any two members of the Board shall be final and binding on all parties.

All discovery, submissions of evidence, hearing of witnesses and argument shall be completed within sixty (60) days of the appointment of the umpire, provided the Board may grant one extension of thirty (30) days.

(1)

The arbitrators and the umpire are not to be bound by any strict rules of legal procedure, evidence or legal precedents.

They shall, however, be governed by the terms of this policy, and shall have no power to add to or change its provisions.

Subject to this admonition, they shall interpret the relevant provisions of this policy as an honorable business agreement, and shall be entitled to decide, in accordance with such provisions together with the other materials submitted to them, what they think is the fair and right thing to be done between the parties from a business point of

view, without favoring the interest of either party.

(j)

The Board shall make its award in writing within i

thirty (30) days after the close of the period, i

including any extension

granted, described in I

paragraph (h) above.

(k)

If the Board fails to make an award within the time prescribed by paragraph (J) above, then unless an l

extension is agreed to by the parties, a

new arbitration shall be commenced and completed in accordance with the procedure set out in paragraphs (a) through (j) above, i

(1)

The award of the Board signed by any two members shall be final, not subject to appeal and binding on all parties, including all insurers subscribing the policy and all insureds thereunder.

The award shall be treated as a matter involving interstate commerce, and may be filed or confirmed in any court of competent jurisdiction, state or

federal, and judgment thereon entered and enforced, in accordance with the law and practice of the forum.

9

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(m); Unless the. Board decides otherwise, each! party shall pay the. expenses of the -arbitrator appointed.by or for it:.

and one half of the other costs. of arbitration..

(n)

If an arbitrator or umpire is unable or unwilhre to

-act, a new arbitrator or umpire, as the case may be,

.shall be appointed to_- ~act -in his or her place. in accordance with the provisions set forth above, a

(o)-

All materials. relevant to the arbitration shall be.

submitted to the Board in triplicate and the filing party shall send simultaneously a copy thereof-to.the

-opposing party.

1' 12.

This endorsement applies to all= claims for darages

costs, 4

extienses or-other relief or recovery for whir.n coverage is

.sc aght. under. this policy, and. which-are first made in writing against any insured on or after the effective date of this endorsement stated below, t-l L

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' Effective Date of this Endorsement January'1, 1990 To form a part'of Policy No NF-296-12:01 A.M. Standard Time-R

-Issued to.

Seabrook' Joint Owners Date of Issue.

February-16. 1990-Tor the su ribing c panies By d

PRESIDENT Endorsement No 35 countersigned by

' iE-71 (1/1/90)

.i

.c Nuclear Energy Llability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)

Effs;tive August 2 0,.

1988, the named

insured, acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability Insurance Association agree as follows:

1.

With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the-facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault-of the insureds, including but not limited to:

(i) negligence, i

-(11) contributory negligence, (iii) assumption of risk, and (iv) unforeseeable intervening

causes, whether involving the conduct of a third person, or an act of God, (2) any issue or defense as to charitable or governmental-immunity, and (3) any issue or defense based on any s1atute of limitations if suit is instituted within taree years f rom the ~date on which the claimant first knew, or reasonably could have known, of his bodil) injury or property damage and the cause thereof.

The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action.

2.

The waivers set forth in paragraph 1. above do not apply to

~ME-33b Page 1 of 3

(a) bodily injury or property damage which s

intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant; (b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law; (c) any claim for punitive or exemplary

damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under law.

3.

The waivers set forth in paragraph 1.

above shall be effective only with respect to bodily injury or property damage to which the policy applies under its terms other than this endorsement;

provided, however, that with respect to bodily injury or property damage resulting from an extraordinary nuclear occurrence, Insuring Agreement IV,

" Application of Policy",

shall not operate to bar coverage for bodily injury or property damage (a) which is caused during _ the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty (20) years after the date of the extraordinary nuclear occurrence.

Such waivers shall not apply to, or prejudice the prosecution or defense of any claim or portion of claim which is not within the prctection afforded under (a) the provisions-of the policy applicable to the financial protection required of the named insured; (b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of 1954, as amended; and (c) the limit of liability provisions of Subsection 170e.

of the Atomic Energy Act of 1954, as amended.

Such waivers shall not preclude a defense based upon the l

failure of the el imant to take reasonable steps to mitigate damages.

t l

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ME-33b-Page 2 of 3

,3 4 '. -

Subject-to all' of-the limitations-stated in this-endorsement and-in _ the Atomic. Energy Act o f - 19 5 4,

as amended, the waivers set forth in paragraph 1. above shall i

be' judicially enforceable in accordance with their terms against any insured in an action to recover damages because _ of bodily injury or -property _ damage to which the policy applies.as. proof of financial protection.

5.

As used herein:

" extraordinary nuclear occurrence" means an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic Energy Act of.1954, as amended.

" Financial protection" and

" nuclear - incident" have the meanings given them in the Atomic Energy Act of 1954, as amended.

" claimant" means the person or organi::ation.actually-sustaining the bodily injury or property damage and also includes his assignees, legal' representatives and other persons or organizations entitled to bring'an action for damages.on account of such injury or damage.

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' Effective Date of this' Endorsement-August 20, 1988 h form a put of Folky No.. MF427 12:01 A.M. Standard tire Issued to

.Seabrook-Joint Owners Date of issue February 16, 1990 For the Subscribing Companies-MITTUAL ATOMIC ENERGT IJABILITY UNDERVRIT t

By y

Endorsement No.

23 Countersigned by CME-33b Page 3 of 3

-.. - -. ~.,. _.. -. - - -

Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY Effective August 20, 1988, it is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES ENDORSEMENT ME-33b with respect to an extraordinary nuclear occurrence-occurring at the

facility, a

claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:

(1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and

_( 2 ) - no operating--license has been_ issued by the Nuclear Regulatory Commission with respect to the nuclear reactor, and (3) the claimant is not employed _ in connection _with the possession,

storage, use or transfer of nuclear material at the' facility.

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' August 20, 1988 To form a part of Policy No. MF-127 12:01 4.M.

Stardard t tine Issued to Seabrook Joint Owners Date of issue February 16, 1990 For the Subscribing Companies MUTUAL ATOKIC ENERGY LIABILITY UNDERVRI By

@ A1 Nk C Endorsement No.

24 Countersigned by ME-39b.

Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS Restriction of Companies Oblication to Defend, Investicate, Necotiate or Settle Any Claim or Suit (Section 170 0. of the Atomic Energy Act of'1954, as amended)

Effective August 20, 1988, it is agreed that whenever, pursuant to subsection 170 0.

of the Atomic Energy Act of 1954-as

amended, an appropriate U.S.

District Court determines that liability from a single nuclear incident may exceed the' limit of liability under the applicable limit of liability under subsection 170 e.(1) (A), (B) and (C) of the Atomic Energy Act of

1954, as

amended, the companies obligations under Insuring Agreement I,

to defend, investigate, negotiate or settle any claim or suit under the policy do not. include any obligation that would. necessitate or result in the companies _ incurring legal

costs, including costs of initiating, prosecuting, investigating, settling, or defending claims or suits, which are not authorized for payment by a court pursuant to such subsection

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• l '.h W::3 Effective Date of this Endorsement August 20, 1988 To form a part of Policy No.

MF-127 12:01 A.M. Standard tire Issued to Seabrook Joint Owners Date of issue _

February 16, 1990 For the Subscribing Companies MUTUAL ATOMIC ENERGT-LIABILITY UNDERURITERS A

By M.

y vi r Endorsement No.

25 Countersigned by HE-70

=

s Nuclear Energy Uability Insurance MUTUAL ATOMIC ENERGY UABluTY UNDERWRITERS WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear occurrence)

The named insured, acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability Insurance Association agree as follows:

1.

With respect to any extraordinary nuclear occurrence to which.the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the insureds, including but not limited to:

(1) negligence.

(ii) contributory negligence, (iii) assumption of risk, and (iv) unforeseeable intervening

causes, whether involving the conduct of a third person, or an act of God, (2) any issue. or defense as to charitable or governmental immunity, and (3) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof.

The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an-element in the cause of action.

2.

The waivers set forth in paragraph 1. above do not apply to (a) bodily

injury, property damage or environmental damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant:

ME-33c (1/1/90)

Page 1 of 3

1.

R (b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable t

or required-to. be provided under any workmen's compensation or occupational disease law:

(c) any claim for punitive or exemplary

damages,

provided, with respect to any~

claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply.to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries 1

resulting from such death but not to exceed the maximum amount otherwise recoverable under law.

3.

The -waivers set forth in paragraph 1.

above shall be ef fective. only with respect to bodily injury, property damage or..anvironmental damage to which the policy applies

.under its terms other than this endorsement: provided,

howevor, that.with respect to bodily injury, property damage or _ environmental damage _ resulting from an

. extraordinary nuclear occurrence, the provisions of COVERAGES A and C of _ the policy providing coverage for

bodily ; injury, property damage or environmental damage caused during the. policy period by the nuclear energy.

hazard and which-is discovered and for which written claim is made~against the insured not later than ten (10) years after the end of-the policy period shall not' operate to bar coverage for _ bodily - injury, property damage or environmental damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written' claim is made against the-insured not later -- than twenty -(20) years after the date of the. extraordinary nuclear occurrenec.

- Such. waivers shall not apply to, or prejuc'ee the prosecution or defense of any claim or portion of claim which is not within the. protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured:

(b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to Section 170-of the Atomic Energy Act of 1954. as amended: and l(c) the -limit of liability. provisions of Subsection 170e.

i of;the Atomic Energy Act of 1956, as amended.

Such waivers shall not preclude a defense based upon tne failure of the claimant to take reasonable steps to

-mitigate-damages.

ME-33c(1/090)

Page 2 of 3

- -. -.. ~. - - - -

s aw 4.

4 Subject to. all.of the limitations stated in this endorsement.and in the Atomic Energy of ~ 1954,; as amended.:the~~ waivers set forth in paragra.Act ph 1. above shall be' Judicially enforceable in accordance with their terms against any insured in an action to recover damages because.of bodily injury.. property damage or environmental damage. to which the policy applies as proof of financial protection.

5.

As.used herein:

" extraordinary nuclear occurrence" means :an event which the Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as defined in the Atomic

j Energy Act of 1954. as-amended.

j

" Financial - protection" and " nuclear incident" have. the meanings given them.in the Atomic Energy Act of 1954. as q

amended.

" claimant" means the person or organization actually sustaining the bodily

injury, property d a ma g e -- or i

i environmental. damage and also includes 'his assignees, legal representatives.and other persons or' organizations entitled to bring an action for damages on account of such injury or damage.

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Standard time Issued to-Seabrook Joint Owners Date of. issue February 16, 1990 For the Subscribing Companies MirnIAL ATOMIC ENERGT LIABILITY UNDERURITERS By Y-N N y

ww Endorsement;No.

26 Countersigned by ME-33c (1/1/90)

Page 3 of 3

-a

Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS

' SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUCTION AT THE FACILITY It is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES ENDORSEMENT HE-33c with respect to an extraordinary nuclear occurrence occurring-at the facility.

a claimant who is. employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the I

Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:

(1)

.the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and (2) no operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear

reactor, and (3) the claimant is.not employed in connection-with the possession,

storage, use or transfer of nuclear material at the facility.

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. Effective Date of this Endorsement January 1,.1990 To form a part of Policy No.

MF-127 12:01 A.M. Standard tim Issued to Seabrook Joint Owners Date of issue February 16, 1990-For the Subscribing Companies MUTUAL ATOMIC ENERCT LIABILITT UNDER By T.

N Endorsement Nc. _,

27 Countersigned by ME-39c (1/1/90)

Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS AMENDATORY ENDORSEMENT (Facility Form)

It is agreed that:

1.

INSURING AGREEMENT I is replaced by the following:

I COVERAGE A - LIABILITY 1

To pay on behalf of the insured all sums which the insured shall.become legally obligated to pay as covered damages because of bodily injury or property damage, or as covered environmental cleanup costs because of environmental damage.

This coverage applies only to bodily injury, property damage or environmental damage caused during the policy period by the nuclear energy hazard, and which is discovered and for which written claim is made against the

. insured, not later than ten (10) years after the end of the policy period.

The companies shall have the right and duty to defend any claim or suit against the insured alleging such injury or damage, and seeking damages or costs which are payable under the terms of this policy: but the companies may make such investigation, negotiation and settlement of the claim or suit as they deem expedient.

The companies' duty to defend shall be

limited, as described in INSURING AGREEMENT IV, if the claim or suit i

also seeks any of the following, which in no event shall be construed as covered by this policy:

(1) damages for on-site property damage:

(2) recovery of on-site cleanup costs or any other cleanup costs except covered environmental cleanup costs:

(3) performance of an insured's environmental protection obligations or on-site cleanup obligations; or

_(A)~

any other relief or recovery except payment of covered damages or covered environmental cleanup costs.

i The companies' duty to defend claims or suits ends when the limit of_their liability has been exhausted pursuant to CONDITION.3.

L Subject to INSURING. AGREEMENT IV, the companies shall pay, with respect to any claim or suit they defend, the costs incurred in the defense, including (1) costs taxed against the insured in any such suit and i

interest on any judgment therein:

(2) premiums on appeal bonds and bonds to release attachments in any such suit, to apply for or furnish such bonds:but without obligation t

i:

h 4

(3) reasonable expenses, other than loss of earnings,

. incurred by the insured at the companies' request.

4 COVERAGE B

- DAMAGE ' TO PROPERTY OF AN INSURED AWAY FROM THE FACILITY i

With-respect to property damage caused during the policy period by the nuclear energy hazard to the property of an insured which ' is away from-the facility, to pay to such insured _those sums which such insured would have -been legally obligated to pay as covered damages therefor, had such property belonged to another.

COVERAGE C - SUBROGATION - OFFSITE EMPLOYEES With respect to bodily injury caused during the _ policy period by the nuclear energy hazard to any employee of an

-insured, and which is discovered and - for which written

_ claim is made against the insured..not later than ten (10)

' years after the-end of the policy period, to pay to the

+

workmen's compensation carrier of.such insured as.follows:

All sums which such carrier-would have been entitled to recover -and retain..as damages from another person or organization, had such - person or organization ' alone been

. legally responsible-for such bodily injury, by reason' of the. rights acquired by subrogation by the payment of the benefits required of such. carrier under. the applicable workmen's compensation or occupational disease law.

An employer ~who is'a duly qualified self-insurer under such law shall be deemed to be a workmen's compensation carrier within the meaning of this coverage.

This Coverage ' does not apply to bodily injury te any person who is_ employed - -at and in connection with the facility nor shall -it constitute workmen's compensation insurance as required under the_ laws of any. state.

2.

INSURING AGREEMENT II-is replaced'by the following:

II = DEFINITION OF-INSURED

' The. unqualified word " insured" includes (a) the named insured and -(b)- any - other -person or organization-with respect to_his legal responsibility for covered damages or covered environmental-cleanup costs because of bodily

injury, property-damage or environmental damage caused by the nuclear energy hazard.

' Subdivision (b) above_does not include as an insured ~ the United States of America or any of-its agencies, eXcept

the Tennessee Valley Authority.

Subject to CONDITION 3 and the other provisions of this policy, the insurance applies separately to each insured against whom claim is made or suit is "rought.

2

a 3.

INSURING AGREEMENT III is replaced by the following:

III DEFINITIONS Wherever used in this policy:

" bodily injury" means bodily injury, sickness or disease, including death resulting therefrom, sustained by any person.

" covered damages" means damages because of bodily injury or property damage to which this policy appliest but coverer: damages do not include environmental cleanup costs or on-site cleanup costs.

" covered environmental cleanup costs" means only those environmental cleanup costs which are incurred directly for monitoring, testing for, cleaning up, neutralizing or containing environmental damage as the result of an extraordinary nuclear occurrence or a transportation incidents but covered environmental cleanup costs do not include on-site cleanup costs.

" disposal site" means any structure, basin, excavation, premises or place prepared as a dump or site for the disposal of waste materials of a general nature, but which may also be used for the disposal of waste materials containing small amounts of nuclear material.

" environment" includes

land, the atmosphere, and all watercourses, bodies of water and natural resources, whether on, above or below the surface of the ground.

" environmental cleanup costs" include all loss, cost or expense arising out of any governmental decree, order or directive (other than an award of covered damages in an action at law) requiring or requesting a person or organization to undertake or pay for monitoring, testing for, cleaning up, neutralizing or containing contamination of the environment, whether the contamination is on, above or below-the surface of the ground.

" environmental damage" means contamination of the environ-ment by nuclear material.

" environmental protection obligations" include all obligations of any person or organization (1) relating to the protection of the environment from contamination or imminent danger of contamination, and (2) imposed by any governmental

laws, regulations or ordinances.

" extraordinary nuclear occurrence" means an event which the United States Nuclear Regulatory Commission has

)

determined to be an extraordinary nuclear occurrence as l

1 3

dofin3d in the Atomic Energy Act of 1954, or in any law amendatory thereof.

" governmental" refers to' federal, state and local governments and authorities, including courts, agencies and political subdivisions thereof.

" indemnified nuclear facility" means (1)

"the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy - Liability Insurance Associ'ation or Mutual Atomic Energy Liability Underwriters, or (2) any other.t.uclear facility.

if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, with respect to any activities or operations conducted i

thereat.

" insured shipment" means a shipment of source material, special nuclear material, spent fuel, waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed -primarily for its source material content, herein called " material,"

(1) to the facility from any location except an indemnified nuclear facility,.but only if the transportation of the material is not by predeter-mination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transpor-tation, or (2) from the facility to any other location, but only until the material is removed from a transporting conveyance for any purpose-other th6n the continuation of its transportation.

" nuclear energy hazard" means the radioactive,

toxic, explosive or other hazardous properties of nuclear material, but only if (1).

the : nuclear material is at the facility or has been discharged or. dispersed the efrom without intent to relinquish possession or custody thereof to any other person or organization, or (2) the-nuclear material is-in an insured shipment which is away from any other nuclear facility and is in-the course of transportation, including handling and temporary storage incidental thereto, within (a) the territorial limits of the United-States of

America, its territories or possessions, or Puerto Rico: or (b) international waters or airspace, provided that' the nuclear material is in the course of transportation between two points located within 4

k the territorial limits described in (a) above and there.is - no deviation in the course of the transportation for the purpose of going to any other country, state or nation, except for the purpose of going to or returning from a as the result. of an emergency. port or place of refuge

" nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters.

The term " nuclear facility" also means (1) any nuclear reactor,

.(2) any equipment or device designed or used for i

(a) separating the isotopes of uranium or plutonium, (b) processing or utilizing spent fuel, or (c) handling, processing or packaging waste, (3) any equipment or device used for the processing, 6

fabricating or alloying of special nuclear material if:at any - time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or-more than 250 grams of uranium 235, (4) any ' structure, basin, excavation, premises or place prepared or used for the storage or disposal of

waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for-such operations.

" nuclear material" means source material, special nuclear material or byproduct material.

" nuclear reactor" means any' apparatus designed or used to

-sustain nuclear fission or a

self-sustaining chain reaction 'or to contain a critical mass of fissionable

material.

"on-site cleanup-costs" include all loss, cost or expense arising out of on-site cleanup obligations.

"on-site cleanup _ obligations" include all obligations of any person or organization, imposed by common law or otherwise, to undertake or pay for monitoring, -testing

.for, cleaning up -neutralizing or containing contamination by nuclear material at the facility,'whether the material is on, above or below the surface of the ground.

"on-site property damage" includes all property damage to any property at the facility, whether the property is on, above or below the surface of the ground, other than aircraft, watercraft or vehicles licensed for highway use, 5

providad such aircraft, watercraft uc0d in connection with the operation of the facility.

or vehicles are not

" property damage" means physical injury to or destructi or radioactive contamination of_ property, and loss of use on of property so injured, destroyed or contaminated, and loss of use of property while evacuated or withdrawn from use because possibly so contaminated or because of imminent danger of contamination.

" source material,"

"speolal nuclear material "

and

" byproduct material" have the meanings given them in the Atomic Energy Act of 1954, or in any law thereof.

amendatory

" spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in any nuclear reactor.

"the facility" means the facility described in the declarations and includes the 3 of the declarations and all location designated in Item such location.

property and operations at

" transportation incident" means of nuclear material from an insured shipment cau by a discharge or dispersal collision or upset of the transporting conveyance, sed accident that breaks open, or an shipping containers punctures or ruptures the or containment thereon: but only if both the discharge or dispersal and the away from any disposal site,or accident take place away from a collision, upset of the transportation, and both occur in the course storage incidental thereto. including handling and temporary

" waste" means any waste material-(1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within i

the definition of nuclear facility under (1) or (2) thereof.

paragraph A.

INSURING AGREEMENT IV is replaced by the following and INSURING AGREEMENT IV-A added by the

" Amendment of 1

Coverage Endorsement for Workers Claims continues to apply:

(Facility Form)"

IV LIMITED DEFENSE OF PARTIALLY COVERED C ITS The following provisions apply with respect to any partially covered claim or suit duty to defend has been limited by INSURING AGREEMENTfor w I:

(1)

The companies will defend the claim or suit unless the companies and the first named insured mutually agree on a different defense arrangement.

By making i

6

such a defense, the companies shall not be considered as having waived their rights under this policy to deny payment or reimbursement of the items not covered.

(2)

As soon as practicable, the first named insured, acting on behalf of all insureds, and the companies shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.

(3)

The companies' share of defense costs shall not exceed the portion of the total defense costs that represents the costs which would be reasonably and necessarily incurred in the defense of the claim or suit in the absence of any claim or demand for the items not covered.

(A)

The companies shall have a right to contribution from the first named insured for all defense costs as they are incurred in excess of the amount of the companies'

share, including reimbursement by the first named insured of all such excess costs paid by the companies.

(5)

If the companies and the first named insured cannot agree on the companies' share of defense costs, the dispute shall be submitted, as a condition precedent to any right of recovery on this policy, to arbitra-tion for a final and binding resolution, as provided in Condition 19.

5.

In EXCLUSIONS (d) and (s), and in all endorsements to this policy relating

thereto, the words

" bodily injury or property damage" are replaced by " bodily injury, property damage or environmental damage."

6.

EXCLUSION (f) is replaced by the following exclusion:

[This policy does not apply:]

(f) to on-site property damage:

7.

In CONDITION 3, and in all endorsements to this policy modifying the dollar amount of the limit of liability stated in Item A of the declarations, the words " bodily injury or property damage" are replaced by " bodily injury, property damage or environmental damage."

8.

In CONDITION A, and in all endorsements to this policy modifying the dollar amount of the total aggregate liability of the companies with respect to a common occurrence:

(a) the words " bodily injury or property damage" are replaced by

" bodily injury, property damage or environmental damage"; and (b) the words " bodily injury and property damage" are replaced by

" bodily injury, property damage and environmental damage."

7

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9.

In CONDITIONS 5, 11. 15 and 18. and in all endorsements to this policy relating thereto, the words " bodily injury or property damage" are replaced by " bodily injury, property damage or environmental damage."

10. -

CONDITION 19, DECLARATIONS, and CONDITION 20 MUTUAL POLICY CONDITION, are renumbered CONDITIONS 20 and 21, 11.

The following CONDITION is added to the policy:

19 ARBITRATION OF DISPUTES RELATING TO THE APPLICATION t

OF INSURINO AGREEMENT IV All such disputes subject to paragraph (5) of INSURING

. AGREEMENT IV shall be submitted to a Board of Arbitration (the " Board") for-a final and binding resolution of the dispute.

There shall be two parties to the arbitration:

the first named insured, acting on behalf of all insureds as their duly authorized representative, and Nuclear Energy Liability Insut ance Association, acting on behalf of the companies as their duly authorized representative, Except-to the extent the parties mutually agree

[

otherwise._the following principles will apply:

-j

(

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(a)

The c oitration will take place in New - York. New MrK. and will be governed -by the laws of the State l

of New-York.

(b)

Either party may begin the process of arbitration by L

giving notice to the other party' in writing of its intention to do so-and the name of the arbitrator that it has appointed.

(c)

_The other party shall then appoint in writing - an arbitrator, and the arbitrators shall appoint in writing an umpire before they begin the arbitration.

l The umpire shall act as chairman of the Board.

L' (d)

If a party fails to name its arbitrator-within i

thirty (30) days of the other party's written request that it do so, the requesting party may L

appoint an arbitrator.'for the' party in default.

l (e)'

If the~ two arbitrators fail-to agree on the selection of an umpire within thirty (30) days after they have both been appointed, each of them - shall name two, of whom the other shall decline one.

The choice shall be made by drawing-lots.

p (f)'

The arbitrators and umpire _shall be executive

' officers or former executive officers of insurance companies licensed to do business in the United 1

States or of organizations designated as the first l

named insured under a Nuclear Energy Liability Policy issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters: provided that the current employees of the following shall not be eligible for service 8

l-l' l,

1 without the consent of both parties:

(1) any party or likely party to the underlying claim or suitt (2)

American Nuclear

Insurers, MAERP Reinsurance Association or their memberst or (3) any other insurer or reinsurer which has casualty insurance or reinsurance in force on any of the foregoing which may be materially affected by the Board's decision.

(g)

Within thirty (30) days after the appointment of the umpire, each party shall submit its case in writing to the Board.

(h)

The Board shall determine its rules of procedure, and the nature and extent of any discovery, testimony, examination or cross-examination of witnesses and oral argument permitted.

The decision of any two members of the Board shall be final and binding on all parties.

All discovery, submissions of evidence, hearing of witnesses and argument shall be completed within sixty (60) days of the appointment of the umpire, provided the Board may grant one extension of thirty (30) days.

(i)

The arbitrators and the umpire are not to be bound by any strict rules of legal procedure, evidence or legal precedents.

They shall, however, be governed by the terms of this policy, and shall have no power to add to or change its provisions.

Subject to this admonition, they shall interpret the relevant provisions of this policy as an honorable business agreement, and shall be entitled to decide, in accordance with such provisions together with the other materials submitted to them, what they think is the fair and right thing to be done between the parties from a business point of

view, without favoring the interest of either party.

(j)

The Board shall make its award in writing within thirty (30) days after the close of the period, including any extension

granted, described in paragraph (h) above.

(k)

If the Board falls to make an award within the time prescribed by paragraph (j) above, then unless an extension is agreed to by the parties, a

new arbitration shall be commenced and completed in i

accordance with the procedure set out in paragraphs (a) through (j) above.

(1)

The award of the Board signed by any two members shall be final, not subject to appeal and binding on all parties, including all insurers subscribing the policy and all insureds thereunder.

The award shall i

be treated as a matter involving interstate commerce, and may be filed or confirmed in any court of competent jurisdiction state or

federal, and s

judgment thereon entered and enforced, in accordance with the law and practice of the forum.

9 l

1 (m)

Unless the Board decides otherwise, each party shall pay the expenses of the arbitrator appointed by or for it and one half of the other costs of arbitration.

(n)

If an arbitrator or umpire is unable or unwilling to act, a new arbitrator or umpire,_as the case may be, shall be appointed to act in his or her place, in accordance with the provisions set forth above.

(o)

All materials relevant to the arbitration shall be submitted to the Board in triplicate and the filing party shall send simultaneously a copy thereof to the opposing party.

12.

This endorsement applies to all claims for damages, costs, expenses or other relief or recovery for which coverage is sought under this policy, and which are first made in writing against any insured on or after the effective date

'of this endorsement stated below.

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10 Effective Date of thia Endorsement _

January 1, 1990 To form a part of Policy No. MF-127 12:01 A.M. Standard Time Issued to Seabrook Joint Owners Date of Issue February 16, 1990 For the Subscribing C(

MUTUAL ATOMIC ENERGY '

/dDERWRITERS c

By

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Endorsement No.

28 Countersigned by__

ME-71(1/1/90)

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Nuclear Ene.Jy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS WAIVER OF DEFENSES ENDORSEMENT (Extraordinary Nuclear Occurrence)

Effective. August 20,

1988, the named

insured, acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability Insurance Association agree as follows:

1.

With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection and which (a) arises out of or results from or occurs in the course of the construction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from Wu facility, the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the-insureds,-including but not limited to:

'(i) negligence, (ii) contributory negligence, (iii) assumption of risk, and (iv) unforeseeable intervening

causes, whether involving the' conduct of 'a third person, or an act of God, (2) any issue or defense as to charitable or governmental immunity, and (3) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his bodily injury or property damage and the cause thereof.

.The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise be deemed jurisdictional or relating to an element in the cause of action.

2.

The waivers set forth in paragraph

1. above do not apply to ME-33b Page 1 of 3

4 (a) bodily injury or property damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the claimant; (b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease law; (c) any claim for punitive or exemplary

damages, provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in nature, this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under law.

3.

The waivers set forth in paragraph 1.

above shall be effective only with respect to bodily injury or property damage to which the policy applies under its terms other than this endorsement;

provided, however, that with respect to bodily injury or property damage resulting from an extraordinary nuclear occurrence, Insuring Agreement IV,

" Application of Policy",

shall not operate to bar coverage for bodily injury or property damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against the insured not later than twenty (20) years after the date of the extraordinary nuclear occurrence.

Such waivers shall not apply to, or prejudice' the prosecution or defense of any claim or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insured; (b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of 1954, as amended; and (c) the limit of liability provisions of Subsecti:r, 170e.

of the Atomic Energy Act of 1954, as amended.

Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages.

ME-33b Page 2 of 3

y, 4.-

Subject.to

-all of. the' limitations stated in-this endorsement and in _ the Atomic Energy.' Act o f-

1954, as amended',:-the-waivers-set forth in paragraph 1. above-shall 1

~ be. judicially enforceable in accordance with - their - terms against any -insured ~ in an action 1 to' recover damages-because of-bodily injury or_ property damage to which the policy applies.as proof of financial protection.

5.-

As used herein:-

i

" extraordinary nuclear occurrence" means. an event which

the Nuclear Regulatory Commission has ' determined to be an extraordinary nuclear occurrence as. defined in the Atomic

-Energy'Act.of 1954, as amended.

" Financial-protection" and " nuclear incident" have the meanings given -them in the Atomic Energy Act of 1954, as amended.

" claimant" -means 'the person or organization actually sustaining : the bodily injury or property damage and also

's

. includes his asrignees, legal representatives and other persons or organizations entitled _ to ~ bring an action for

-damages on account of such injury or damage.

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' Effective.Date o'f

this Endorsement August 20, 1988 l

l-To form a part of Polky No.

MF-127 12:o)

A.M.

Standard tirne

Issued to Seabrook Joint Owners 9

.Date of issue February 16, 1990'

~

For the Subscribing Companies g

MUTUAL ATOMIC ENERGY LIABILITY UNDER By

'M -

y Endorsement.No.

23 Countersigned by l-IME-33b Page 3 of.3

\\

Nuclear Energy Liability insurance l

MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS 1

SUPPLEMENTARY ENDORSEMENT c

WAIVER OF DEFENSES' t

REACTOR CONSTRUCTION AT THE TACILITY Effective August 20, 1988, it is agreed that in construing the application of paragraph 2 (b) of the WAIVER OF DEFENSES ENDORSEMENT ME-33b with respect to an extraordinary nucicar occurrence occurring at the

facility, a

claimant who is employed at the facility in connection with the construction of a nuclear reactor with respect to which no operating license has been issued by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place ifs (1) the claimant is employed exclusively in connection 4

with the construction of a nuclear reactor, including all related equipment and installations at the facility, and (2)- no operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear reactor, and (3) the claimant is not employed -in connection with the possession,

storage, use or transfer of nuclear material at the facility.

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Q Effective Date of this Endorsement August 20, 1988 To form a part of Policy No, MF-127 12101 A.M.

$tandard tlFw Issued to-Seabrook Joint Owners-Date of issue February 16, 1990 For the Subscribing companies MUn1AL ATOMIC ENERCT LIABILITT UNDER ERS n._ A,1 N,k /n 7 By w

Endorsement No.

24 Countersigned by ME-39b

1 1

Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS Res_triction of Companies oblication to Defend.

Investicato, Necotiate or_ Settle Any claim or Su d (Section 170 0. of the Atomic Energy Act of 1954, as amended)

Effective August 20, 1988, it is agreed that whenever, pursuant to subsection 170 O.

of the Atomic Energy Act of 1954, as

amended, an appropriate U.S.

District Court determines that liability from a single nuclear incident may exceed the limit of liability under the applicable limit of liability under subsection 170 e.(1) (A), (B) and (C) of the Atomic Energy Act of

1954, as

amended, the companies obligations under Insuring Agreement I,

to defend, investigate, negotiate or settle any claim or suit under the policy do not include any obligation that would necessitate or result in the companies incurring legal

costs, including costs of initiating prosecuting, investigating, settling, or defending claims or, suits, which are not authorized for payment by a couru pursuant to such subsection 170 0.

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Effective Date of this Endorsement August 20, 1988 To form a part of Policy No.

MF-127 th ol A.M.

stenaard time Issued to Seabrook Joint Owners Date of' issue February 16, 1990 For the Subscribing Companies MITfDAL ATOKIC ENERGY LIABILITY UNDERVRITERS A

By

• T.

y ww Endorsement No.

25 countersigned by ME-70

Nuclear Energy LiabilNy Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS WAIVER OF DEFENSES ENQORSEMENT (Extraordinary Nuclear Occurrence)

The named insured, acting for himself and every other insured under the policy, and the members of Nuclear Energy Liability I

Insurance Association agree as follows:

1.

With respect to any extraordinary nuclear occurrence to which the policy applies as proof of financial protection

)

and which (a) arises out of.or results from or occurs in the course of the construction, possession, or operation of the facility, or (b) arises out of or results from or occurs in the course of the transportation of nuclear material to or from the facility.

the insureds and the companies agree to waive (1) any issue or defense as to the conduct of the claimant or the fault of the insureds. including but not limited tol (1) negligence.

(ii) contributory negligence.

(iii) assumption of risk, and (iv) unforeseeable intervening causes.

whether involving the conduct of a third person, or an act of God.

(2) any issue or defense as to chsritable or governmental immunity, and (3) any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known.-of his bodily injury or property damage and the cause thereof.

The waiver of any such issue or defense shall be effective regardless of whether such issue or defense may otherwise bo deemed jurisdictional or relating to an element in the cause of action.

2.

The waivers set forth in paragraph 1. above do not apply to (a) bodily injury.. property damage or environmental damage which is intentionally sustained by the claimant or which results from a nuclear incident intentionally and wrongfully caused by the ulc,manti ME-33c(1/1/90)

Page 1 of 3

(b) bodily injury sustained by any claimant who is employed at the site of and in connection with the activity where the extraordinary nuclear occurrence takes place if benefits therefor are either payable or required to be provided under any workmen's compensation or occupational disease laws (c) any claim for punitive or exemplary damages.

provided, with respect to any claim for wrongful death under any State law which provides for damages only punitive in natura.

this exclusion does not apply to the extent that the claimant has sustained actual damages, measured by the pecuniary injuries resulting from such death but not to exceed the maximum amount otherwise recoverable under law.

3.

The waivers set forth in paragraph 1.

above shall be effective only with respect to bodily injury. property damage or environmental damage to which the policy applies under its terms other than this endorsementt

however, uhat with respect to bodily injury provided.

property damage or envil'onmental damage resulting from an extraordinary nuclear occurrence, the provisions of COVERAGES A and C of the policy providing coverage for bodily injury.

property damage or environmental damage caused during the policy period by the nuclear energy hazard and which is discovered and for which written claim is made against the insured not later than ten (10) years after the end of the policy period shall not operate to bar coverage for bodily

injury, property damage or environmental damage (a) which is caused during the policy period by the nuclear energy hazard and (b) which is discovered and for which written claim is made against

-the insured not later than twenty (20) years after the date of the extraordinary nuclear occurrence.

Such waivers shall not apply co.

or prejudice the prosecution or defense of any claim or portion of claim which is not within the protection afforded under (a) the provisions of the policy applicable to the financial protection required of the named insuredt (b) the agreement of indemnification between the named insured and the Nuclear Regulatory Commission made pursuant to Section 170 of the Atomic Energy Act of 1954 as amended: and (c) the limit of liability provisions of Subsection 170e.

i of the Atomic Energy Act of 1954, as amended.

Such waivers shall not preclude a defense based upon the failure of the claimant to take reasonable steps to mitigate damages.

ME-33c (1/1/90)

Page 2 of 3

o

..a 4

Subject to all of the limitations stated i n this endorsement and in the Atomic Energy Act of 1954 as amended, the waivers set forth in paragraph 1. above shall be judicially enforceable in accordance with their terms against any insured in an action to recover damages j

because of bodily injury property damage or environmental damage to which - the policy applies as proof of financial protection.

5..

As used herein:

" extraordinary nuclear occurrence" means an event which the Nuclear Regulatory commission has determined to be an extraordinary nuclear occurrence as defined in the Atcmic Energy Act of 1954, as amended.

'"Tinancial protection" - and " nuclear incident" have the meanings given them in the Atomic Energy Act of 1954'. as amended.

" claimant" means the person.or organization actually sustaining the bodily injury.

property ' damage or environmental damage and also includes his assignees.

legal representatives and other persons or organizations

. entitled to~ bring an action t;r damages on account of such injury _or. damage.

4 t

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w.,

LEffective Date of' 1

this Endorsement.

January 1, 1990 To form a part of Policy No.

MF-127 12:0) A.M.

Standard time '

Issued to Seabrook Joint Owners

Date of-issue Rbruary 16, 1990 For the subseribing companies NtrfUAL ATOKIC ENERGY LT. ABILITY-UNDERVRITERS -

By E S--

y vi r Endorsement No.

26-Countersigned by ME.33c(1/1/90)

Page 3 of 3

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Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS SUPPLEMENTARY ENDORSEMENT WAIVER OF DEFENSES REACTOR CONSTRUC1. ION AT THE FACILITY It is agreed that in construing the application of paragraph 2(b) of the WAIVER OF DEFENSES ENDOP.SEMENT ME-33c with respect to an extraordinary nucicar occurrence occurring at the

facility, a

claimant who is smployed at the facility in connection with the c ons t ruc t.on of a nuclear reactor with respect to which no operating license has been issaed by the Nuclear Regulatory Commission shall not be considered as employed in connection with the activity where the extraordinary nuclear occurrence takes place if:

(1) the claimant is employed exclusively in connection with the construction of a nuclear reactor, including all related equipment and installations at the facility, and (2) no operating license has been issued by the Nuclear Regulatory Commission with respect to the nuclear reactor, and (3) the claimant is not employed in connection with the possession,

storage, use or transfer of nuclear material at the facility.

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A.,.

a-Effective Date of this Endorseme.

Ja m i 1, 1990 To form a part of Policy No.

MF-127 12:01 A.M.

Stancard t itre fssued to Seabrook Joint Owners Date of issue February 16, 1990 For the Subscribing Companies MUTUAL ATOKIC ENERGT LIABILITY UNDERVRITI By

.T.

N Endorsement No.

27 Countersigned by l

ME-39c (1/1/90)

Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDCRWRITERS AMENDATORY ENDORSEMENT (Facility Form)

It is agreed that:

i 1.

INSURING AGREEMENT T is replaced by the following:

I COVERAGE A - LIAb LITY To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as covered damages because of bodily injury or property damage, or as covered environmental cleanup costs because of environmental damage.

This coverage applies only to bodily injury, i

property damage or environmental damage caused during the policy period by the nuclear energy hazard, and which is discovered and for which written claim is made against the insured, not later than ten (10) years after the end of the policy period.

The companies shall have the right and duty to defend any claim or suit against the insured alleging such injury or damage, and seeking damages or costs which are payable under the terms of this policy: but the companies may make such investigation, negotiation and settlement of the claim or suit as they deem expedient.

The companies' duty to defend shall be limited, as described in INSURING AGREEMENT IV, if the claim or suit also seeks any of the following, which in no event shall be construed as covered by this policy:

(1) damages for on-site property damages (2) recovery of on-site cleanup costs or any other cleanup costs except covered environmental cleanup costst (3) performance of an insured's envisconmental protection obligations or on-site cleanup obligations or (4) any other relief or recovery except payment of covered damages or covered environmental cleanup costs.

l The companies' duty to defend claims or suits ends when the limit of their liability has been exhausted pursuant to CONDITION 3.

Subject to INSURING AGREEMENT IV.

L with respect to any claim or suitthe companies shall pay, l

they defend, the costs incurred in the defense, including t

(1) costs taxed against the insured in any such suit and interest on any judgment therein:

(2) premiums on appeal bonds and bonds to release attachments in any such suit, but without obligation to apply for or furnish such bonds:

1 (3) reasonable expenses, other than loss of earnings, incurred by the insured at the companies' request.

COVERAGE B - DAMAGE TO PROPERTY OF AN INSURED AWAY FROM THE FACILITY With respect to property damage caused during the policy period by the nuclear energy hazard to the property of an insured which is away from the f acility, to pay to such insured those sums which such insured would have been legally obligated to pay as covered damages therefor, had such property belonged to another.

COVERAGE C - SUBROGATION - OFFSITE EMPLOYEES With respect to bodily injury caused during the policy period by the nuclear energy hazard to any employee of an insured, and which is discovered and for which written claim is made against the insured, not later than ten (10) years after the end of the policy period, to pay to the workmen's compensation carrier of such insured as follows:

All sums which such carrier would have been entitled to recover and retain as damages from another person or organization, had such person or organization alone been legally responsible for such bodily injury, by reason of the rights acquired by subrogation by the payment of the benefits required of such carrier under the applicable workmen's compensation or occupational disease law.

An employer who is a duly qualified self-insurer under such law shall be deemed to be a workmen's compensation carrier within the meaning of this coverage.

This Coverage does not apply to bodily injury te any person who is employed at and in connection with the facilityt nor shall it constitute workmen's compensation insurance as required under the laws of any state.

2.

INSURING AGREEMENT II is replaced by the following:

II DEFINITION OF INSURED The unqualified word " insured" includes (a) the named insured and (b) any other person or organizatAcn with respect to his legal responsibility for covered daanges or covered environmental cleanup costs because of bodily injury, property damage or environmental damage caused by the nuclear energy hazard.

Subdivision (b) above does not include as an insured the United States of America or any of its agencies, except the Tennessee Valley Authority.

Subject to CONDITION 3 and the other provisions of this policy, the insurance applies separately to each insured against whom claim is made or suit is brought.

2 I

f 3.

INSURING AGREEMENT III is replaced by the following:

III DEFINITIONS Wherever used in this policy:

" bodily injury" means bodily injury, sickness or disease, including death resulting therefrom, sustained by any person.

" covered damages" means damages because of bodily injury or property damage to which this policy applies but covered damages do not include environmental cleanup costs or on-site cleanup costs.

" covered environmental cleanup costs" means only those environmental cleanup costs which are incurred directly for monitoring, testing for _ cleaning up, neutralizing or containing environmental damage as the result of an extraordinary nuclear occurrence or a transportation incident but covered environmental cleanup costs do not l

include on-site cleanup costs.

" disposal site" means any structure, basin, excavation.

-premises or place prepared as a dump or site for the disposal of waste materials of a general nature, but which also be used for the disposal of waste materials may containing small amounts of nuclear material.

" environment" includes

land, the atmosphere, and all watercourses, bodies of water and natural resources, whether on, above or below the surface of the ground.

" environmental cleanup costs" include all loss, cost or expense arising out of any governmental decree, order or directive (other than an award of covered damages in an action at law) requiring or requesting a rerson or organization to undertake or pay for monitorir.g, testing for, cleaning up, neutralizing or containing contamination of the environment, whether the contaminatio.a is on, above or below the surface of the ground.

" environmental damage" means contaminatien of the environ-ment by nuclear material.

" environmental protection obligations" include all obligations of any person or organization (1) relating to the protection of the environment from contamination or imminent danger of contamination, and (2) imposed by any governmental

laws, regulations or ordinances.

" extraordinary nuclear occurrence" means an event which the United States Nuclear Regulatory Commission has determined to be an extraordinary nuclear occurrence as 3

1 d3 fin d in tho Atomic Energy Act of 1954 or in any law amendatory thereof.

" governmental" refers to

federal, state and local governments and au'thorities.

including courts. agencies and political subdivisions thereof.

" indemnified nuclear facility" means (1)

"the facility" as defined in any Nuclear Energy Liability Policy (racility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters, or (2) any other nuclear facility, if financial protection is required pursuant to the Atomic Energy Act of 1954 or any law amendatory thereof, with respect to any activities or operations conducted thereat.

" insured shipment" means a shipment of source material, special nuclear material, spent fuel, waste, or tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content, herein called " material,"

(1) to the facility from any location except an indemnified nuclear

facility, but only if the transportation of the material is not by predeter-i mination to be interrupted by removal of the material from a transporting conveyance for any purpose other than the continuation of its transpor-tation, or (2) from the facility to any other location, but only until the material is removed from a transportins conveyance for any purpose other than tha continuation of its transportation.

" nuclear energy hazard" means the radioactive,

toxic, explosive or other hazardous properties of nuclear material, but only if (1) the nuclear material is at the facility or has been discharged or dispersed therefrom without intent to relinquish possession or custody thereof to any other person or organization. or (2) the nuclear material is in an insured shipment which is away from any other nuclear facility and is in the course of transportation, including handling and temporary storaga incidental thereto, within (a) the territorial limits of the United States of

America, its territories or possessions, or Puerto Ricot or (b) international waters or airspace, provided that the nuclear material is in the course of transportation between two points located within 4

l the territorial limits described in (a) above and there is no deviation in the course of the t

transportation for the purpose of going to any other country, state or nation, except for the purpose of going to or returning from a as the result of an emergency. port or place of refuge

" nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or Mutual Atomic Energy Liability Underwriters.

The term " nuclear facility" also means (1) any nuclear reactor.

(2) any equipment or device designed or used for (a) separating the isotopes of uranium or plutonium, (b) processing or utilizing spent fuel, or (c) handling, processing or packaging waste.

(3) any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where u

such equipment or device is located consists of - or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235, (4) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of

waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations.

" nuclear material" means source material, special nuclear material or byproduct material,

" nuclear reactor" means any apparatus designed or used to sustain nuclear fission or a self-sustaining chain reaction or to contain a critical mass of fissionable l

material.

"on-site cleanup costs" include all loss, cost or expense arising out of on-site cleanup obligations.

"on-site cleanup obligations" include all obligations of any person or organization, imposed by common law or otherwise, to undertake or pay for monitoring, testing L

for, cleaning up, neutralizing or containing contamination by nuclear material at the facility, whether _the material is on,.above or below the surface of the ground.

"on-site property damage" includes all property damage to any property at the facility, whether the property is on.

I above or below the surface of the ground, other than aircraft, watercraft or vehicles licensed fer highway use, 5

provid:d such aircraft, watorcraft or vehicles are not used in connection with the operation of the facility.

. or radioactive contamination of property, a of property so injured, destroyed or loss of use of property while evacuated or withdrawn from contaminated, and use because possibly so contaminated imminent danger of contamination.

or because of 1

" source material,"

"special nuclear material,"

and

" byproduct material" have the Atomic Energy Act of 1954, meanings given them in the thereof.

or in any law amendatory

" spent fuel" means any fuel element or fuel component, solid or li radiation.in quid, which has been used or exposed to any nuclear reactor.

"the facility" means the facility described in the declarations and includes the location desig 3

em such location.

" transportation incident" means of a discharge or dispersal nuclear material from.an insured shipment caused by collision or upset of the transporting accident that breaks conveyance, or an

open, punctures shipping containers or containment or ruptures the-both the discharge or dispersal and thereont but only'if away from any disposal site,or accident take place away from the of the transportation, and both occur in the course storage-incidental thereto. including handling and temporary

" waste" means any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any. nuclear facility included-within the definition of. nuclear (1) or (2) thereof.

facility under paragraph

4..

INSURING - AGREEMENT IV is replaced by the following and INSURING AGREEMENT IV-A added by. the Coverage Endorsement continues to apply:

for Workers Claims

" Amendment of (Facility Form)"

IV LIMITED DEFENSE OF PARTIALLY COVERED The-following provisions partially covered claim or suitapply with respect to -any duty to defend has been limited by INSURING AGREEMENT Ifo (1)

The companies will defend the claim or suit unless the companies and the first named insured mutually l

agree on a different defense arrangement.

By making 6

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i auch a defense, the companies shall not be considered as having waived deny payment or - their rights under this policy to reimbursement of the items not covered.

(.". ) As soon as practicable, the first named insured, acting on behalf of all insureds, and the companies shall endeavor to reach an equitable arrangement for handling the defense and sharing the costs thereof.

(3)

The companies' share of defense costs shall not exceed the portion of the total defense costs that represents the costs which would be reasonably and necessarily incurred in the defense of the claim or suit in the absence of any claim or demand for the items not covered.

(4)

The companiew maall have a right to contribution from the first named insured for all defense costs as they are incurred in excess of the amount of the companies'

share, including reimbursement-by the first named insured of all-such excess costs paid by the companies.

(5)

If the companies and the first named insured cannot agree on the companies' share of defense costs, the dispute shall be submitted, as a condition precedent to any right of recovery-on this policy, to arbitra-tion for a final and binding resolution, as provided in-Condition 19.

5.

In EXCLUSIONS (d) and (e). and in all endorsemerits to this policy relating thereto, the words

" bodily injury or property damage" are replaced by " bodily injury, property damage or environmental damage."

6.

EXCLUSION-(f) is replaced by the following exclusion:

(This policy does not apply:)

-(f) to on-site property damage 7.

-In-CONDITION 3 and in all endorsements ' to this policy modifying the dollar amount of the limit of liability-stated in Item 4 of the declarations, the words " bodily injury or property damage" are replaced by " bodily injury, property damage or environmental damage."

8.

In CONDITION

4. and in all endorsements-to this policy modifying the dollar amount of the total aggregate liability of the companies with respect to a common occurrence:

(a) the words " bodily injury - or replaced by

" bodily injury, property damage" are property damage or environmental damage": and (b) _ replaced by. " bodily it4 jury,property damage and the words " bodily injury and property damage" are environmental damage."

7

9.

In CONDITIONS 5, 11, 15 and 18 and in all endorsements to this policy relating thereto, the words " bodily injury cr property damage" are replaced by " bodily injury, property damage or environmental damage."

10.

CONDITION 19, DECLARATIONS, and CONDITION 20 MUTUAL POLICY CONDITION, are renumbered CONDITIONS 20 and 21.

1 11.

The following CONDITION is added to the policy:

19 ARBITRATION OF DISPUTES RELATING TO THE APPLICATION OF INSURING AGREEMENT IV All such disputes subject to paragraph (5) of INSURING AGREEMENT IV shall be submitted to a Board of Arbitration (the " Board") for a final and binding resolution of the dispute.

There shall be two parties to the arbitration:

the first named insured, acting on behalf of all insureds as their duly authorized representative, and Nuclear Energy Liability Insurance Association, acting on behalf of the companies as their duly authorized representative.

Except to the extent the parties mutually agree otherwise, the following principles will apply:

(a)

The arbitration will take place in New York, New York, and will be governed by the laws of the Sta te of New York.

(b)

Either party may begin the process of arbitration by giving notice to the other party in_ writing of its intention to do so and the name of the arbitrator that it has appointed.

(c)

The other party shall then appoint in writing an arbitrator, and the arbitrators shall appoint in writing an umpire.before they begin the arbitration.

l The umpire shall act as chairman of the Board.

(d)

If a party fails to name its arbitrator within thirty (30) days of the other party's written request that it do so, the requesting party may appoint an arbitrator for the party in default.

(e)

If the two arbitrators fail to agree on the selection of an umpire within thirty (30) days after they have.both been appointed, each of them shall name two, of whom the other shall decline one.

The L

choice shall be made by drawing lots.

(f)

The arbitrators and umpire shall be executive officers or former executive officers of insurance companies licensed to do business in the United States or of organizations designated as the first named insured under a Nuclear Energy Liability Policy issued by Nuclear Energy Liability Insurance i

Association or Mutual Atomic Energy Liability Underwriters provided that the current employees of tha following shall not be eligible for service 8

l

without the cons 0nt of both parties:

(1) any party or likely party to the underlying claim or suitt (2)

American Nuclear Insurers.

MAERP Reinsurance Association or their members or (3) any other insurer or reinsurer which has casualty insurance or reinsurance in force on any of the foregoing which may be materially affected by the Board's decision.

(g)

Within thirty (30) days after the appointment of the umpire, each party shall submit its case in writing to the Board.

(h)

The Board shall determine its rules of procedure, and the nature and extent of any discovery, testimony, examination or cross-examination of witnesses and oral argument permitted.

The decision of any two members of the Board shall be final and binding on all parties.

All discovery, submissions of evidence, hearing of witnesses and argument shall be completed within sixty (60) days of the appointment of the umpire, provided the Board may grant one extension of thirty (30) days.

(i)

The arbitrators and the umpire are not to be bound by any strict rules of legal procedure, evidence or legal precedents.

They shall, however, be governed by the terms of this policy, and shall have no power to add to or change its provisions.

Subject to this admonition, they shall interpret the relevant provisions of this policy as an honorable business agreement, and shall be entitled to decide, in accordance with such provisions together with the other materials submitted to them, what they think is the fair and right thing to be done between the parties from a business point of

view, without favoring the interest of either party.

(j)

The Board shall make its award in writing within thirty (30) days after the close of the period.

including any extension

granted, described in paragraph (h) above.

(k)

If the Board fails to make an award within the time prescribed by paragraph (j) above. then unless an extension is agreed to by the parties, a

new arbitration shall be commenced and completed in accordance with the procedure set out in paragraphs (a) through (j) above.

(1)

The award of the Board signed by any two members shall be final, not subject to appeal and binding on all parties, including all insurers subscribing the policy and all insureds thereunder.

The award shall be treated as a matter involving interstate commerce, and may be filed or confirmed in any court of competent jurisdiction.

state or

federal, and judgment thereon entered and enforced. in accordance with the law and practice of the forum, i

9

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i (m)

Unless the Board decides otherwise, each party shall pay - the expenses of the arbitrator appointed by or for it and one half of the other costs of arbitration.

(n)

If_an arbitrator or umpire is unable or unwilling to

'act._a new arbitrator or umpire, as the case may be.

shall be appointed to act in his or her place.'in accordence with the provisions set forth above.

(o)

All materials relevant to the arbitration shall be submitted to the Board in triplicate and the filing party shall send simultaneoualy a copy thereof to the opposing party.

12.

This endorsement applies to all claims for damages, costs, expenses or other relief or recovery for which coverage is j

sought ' under this policy, and which are first made in writing against any insured on or after the effective date

'of this endorsement stated below.

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- this Endorsement __. January 1. 1990 To form a part of Policy No._MF-127 12:01 A.M. Standard Time Issued to Seabrook Joint Owners Date' of Issue _ February 16, 1990 For the Subscribing Companies MUTUAL ATOMIC ENERef LIABILITT UNDERWRITERS B y___

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Endorsement No.

28 Countersigned by _

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Authorised Representative

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Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CERTITICATE No. N-109 TORMING PART OF MASTER POLICY NO. 1 ~

NUCL"AR ENERGY LIABILITY INSURANCE (Secondary Financial Protection) 1.

In paragraph (c) on Pages 1 and 2 of the certifieste, and in all endorsements to the certificate relating thereto, the words " bodily injury or property damage" are amended to read "bedily iniury. procerty damate or environmental damare",

i This endorsement applies to all claims for damages, costs, expenses or other relief or recovery f or which coverage is sought under the policy, and which are first made in writing against any insured on or af ter the effective date of this endorsement stated below.

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Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT 70 CERTIFICATE No. N-109 TOPJ4INO PART OF MASTER POLICY No.1 NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection) 1.

In paragraph (c) on Pages 1 and 2 of the certifiesto. and in all endorsements to the certificate relating theretc. the words " bodily injury or property damage" are amended to read "bedily i n iury. procerty danace or environmental damate".

2.

This endorsement applies to all claims for damages. costs.

expenses or other relief or recovery for which coverage is sought under tho' policy, and which are first made in writing against any insured on or after the effective date of this endorsement stated below.

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Issued to' Seabrook Joint Owners Date of Issue March 23, 1990 For the Subs ribing CoEpanies, By l %h.

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EM Nuclear Energy Liability Insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDOP.SEMENT TO CERTIFICATE NO. M-109 FORMING PART OF MASTER POLICY No. 1 NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Financial Protection) 1.

In paragraph (c) on Pages 1 and 2 of the certificate, and in all endorsements to the certificate relating thereto, the words " bodily injury or property damage" are amended to read

" bodily in iurv. p,.rocerty danact or environrental damate".

2.

This endorsement applies to all claims for damages. costs, expenses or other relief or recovery for which coverage is sought under the policy, and which are first made in writing against any insured on or af ter the effective date of this endorsement stated below.

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Nuclear Energy Liability insurance MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT To CERTIFICATE No. M-109 TORMING PART OF MASTER POLICY No. 1 NUCLEAR ENERGY LIABILITY INSURANCE (Secondary Tinancial-Protection) 1.

In paragraph (c) on Pages 1 and 2 of the certificate, and in all endorsements to the certificate relating thereto, the words " bodily injury or property damage" are amended to read "bedily iniurv, erecorty damace or environmental damace".

2.-

This endorsement applies to all claims.for damages. costs, expenses cr. other relief or recovery for which coverage is sought under the policy, and which are first made in writing against-any insured on or after the effective date of this endorsement stated below.

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