Exclusions

This Agreement does not apply to the following:

1. Claims insured under the "Georgia Tort Claims Act" as specified in O.C.G.A. 50-21-20 et.seq.

2. Claims relating to an "occurrence" committed or allegedly committed by a Covered Party while outside the course and scope of their duties with a participating "department".

3. Claims for "bodily injury" or "property damage" expected or intended from the standpoint of the Covered Party. This exclusion does not apply to "bodily injury" resulting from the use of reasonable force to protect persons or property. This exclusion also does not apply to "damages" arising out of any "personal injury".

4. Claims for "bodily injury" to an employee of the State of Georgia or any of its "departments" for which the State of Georgia or any of its "departments" may be held liable under any worker's compensation, unemployment compensation or disability benefits law or any similar law. In addition, loss of income, wages, commissions and all other types of employee benefits to be paid to an employee of the Named Covered Party as a result or a settlement of the claim or if awarded in a judgment in court are not covered by this Agreement.

5. Claims for "bodily injury" or "property damage" to any employee of the State of Georgia or any of its "departments" arising out of and in the course of such employee's employment or to any obligation of any Covered Party to indemnify such employee because of damages arising out of such injury.

6. Claims for any liability to the State of Georgia, or to any department thereof; or to any political subdivision of the State of Georgia; however this Agreement will cover "property damage" claimed by these government entities if:

The damages result from the negligence of a Covered Party in the course and scope of their duties with a participating "department"; and

"Property damage" relates to property that is owned by a government agency other than the "department" where the Covered Person is employed.

7. Except as provided in Coverage Agreement, Additional Covered Party Coverage, this Agreement does not apply to claims for "bodily injury", "property damage" and/or "personal injury" arising out of the ownership maintenance, operation, use or entrustment to others of any aircraft, watercraft or "automobile" owned by or rented or loaned to any Covered Party. Use includes operation and "loading and unloading". This exclusion applies even if the claims against the Covered Party allege negligence or other wrongdoing in the supervision, hiring, employment, training, or monitoring of others by that Covered Party, if the "occurrence" which caused the "bodily injury" or "property damage" involved the ownership, maintenance, use or entrustment to others of any aircraft, watercraft or "automobile" that is owned or operated by or rented or loaned to any Covered Party. This exclusion does not apply to "bodily injury" or "property damage" arising out of the operation of any "mobile equipment". However, coverage under this Agreement would apply to use of an "automobile" or watercraft involved in an "occurrence" outside of the State of Georgia where the "occurrence would not be covered by the Georgia Tort Claims Act. Notwithstanding the coverage provided to "automobiles" or water craft involved in "occurrences" outside of the State of Georgia, all other provisions of this exclusion apply.

8. Claims for "bodily injury" or "property damage" arising out of the ownership, maintenance, operation, use, "loading or unloading" of any "mobile equipment" while being used in any prearranged or organized racing, speed or demolition contest or in any stunting activity or in practice or preparation for any such contest or activity.

9. Claims for "bodily injury" or "property damage" arising out of or in the course of the transportation of "mobile equipment", which transportation is being done by a land motor vehicle licensed for public road use.

10. The coverage as afforded by this Agreement does NOT apply to claims for: "bodily injury", "property damage", and/or "personal injury" (including the loss of use thereof) caused by, contributed to or arising out of the actual, alleged or threatened discharge, dispersal, release, or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste material or other irritants, pollutants contaminants, or hazardous material into or upon the land, the atmosphere or any course or body of water, whether above or below ground. The coverage afforded by this Agreement does no apply to any loss, cost or expense arising out of any request, demand or order that any Covered Party test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants". This Agreement also does not apply to any claim or "lawsuit" by or on behalf of any party, including but not limited to a government authority for damages or other relief because of testing, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way, responding to, or assessing the effects of "pollutants. This exclusion does not apply to claims related to the intentional discharge of chemicals by the Covered Party in the course and scope of their duties with a participating "department" for the purpose of controlling rodents, pests, or weeds on State property.

11. Claims for "bodily injury" or "property damage", and/or "personal injury" due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution or to any act or condition incidental to any of the foregoing.

12. Claims for "bodily injury", "property damage", and/or "personal injury" for which and Covered Party

(1) may be held liable as a person or organization engaged in the business of manufacturing, selling or distributing alcoholic beverages or if not so engaged,

(2) as an employee of the owner, the owner or the lessor of premises used for such purposes if such liability is imposed by or because of the violation of any statute, ordinance or regulation pertaining to the sale, gift, distribution or use of any alcoholic beverage to a minor or to a person under the influence of alcohol or which causes or contributes to the intoxication of any person.

13. Claims for "property damage" to any property owned or occupied or rented to any Covered Party or property used by any Covered Party or property in the care, custody or control of any Covered Party or as to which any Covered Party is for any purpose exercising physical control; except as to any easement, sidetrack contract or agreement or in any fiduciary capacity.

14. Claims for "property damage" to premises alienated by the State of Georgia or its "departments".

15. Claims for loss of use of tangible property which has not been physically injured or destroyed resulting from a delay in or lack of performance by or on behalf of any Covered Party with respect to any contract or agreement by the State of Georgia or its "departments" or the failure of products or work performed by or on behalf of any Covered Party to meet the level of performance, quality, fitness or durability warranted or represented by the Covered Party; provided that this exclusion does not apply to the loss of use of other tangible property resulting from the sudden and accidental injury to or destruction of the product or work produced or performed by or on behalf of any Covered Party after such product or work has been put to use by any person or organization other than the Covered Party.

16. Claims for any "damages" for the withdrawal and inspection, repair, replacement or loss of use

(1) of any Covered Party's product or work completed by or for any Covered Party, or

(2) of any property of which such product or work forms a part, when such product or work is withdrawn from the market or from use because of any known or suspected defect or deficiency therein.

17. Claims for "damages" resulting from an dishonest, fraudulent or criminal act or omission of any covered party which forms the basis of a criminal conviction, whether by verdict, plea of guilty or plea of nolo contender including any criminal conviction for which first-offender treatment is afforded, regardless of the specific offense for which a criminal conviction is obtained or the theory of civil liability asserted against the Insured.

18. Claims for any action(s) seeking relief in the nature of injunctive, mandamus, or other extraordinary relief or any action for declaratory judgment, or both, except when monetary damages are individually sought against a Covered Party; provided however, this Agreement shall not provide coverage for costs associated with complying with any other for injunctive, mandamus or other extraordinary relief or declaratory judgment.

19. Claims for any "damages" resulting from the hazardous properties of nuclear material arising out of the operation of a nuclear facility by any person or organization.

20. With respect to injury, sickness, disease, death or destruction:

When the Covered Party under this Agreement is also an insured under a nuclear energy liability policy issued by the Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any policy but for its termination upon exhaustion of its limit of liability; or

Resulting from the hazardous properties of nuclear material and with respect to which

(1) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law Amendatory thereof, or

(2) the Covered Party is, or had this Agreement not been issued would be entitled to indemnity from the United States of America, or any agency thereof, under, under any agreement entered into by the United States of America or any agency thereof, with any person or organization; or

Under any medical payments coverage, or under any supplementary payments provision relating to immediate medical or surgical relief to expense incurred with respect to bodily injury, sickness, disease or death resulting from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization; or

Under any liability coverage, for injury, sickness, disease, death or destruction resulting from the hazardous properties of nuclear material; if:

(1) The nuclear material (1) is at any nuclear facility owned by or operated by or on behalf of a Covered Party, or (2) has been discharged or dispersed therefrom;

(2) The nuclear material is contained in spent fuel or waste at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of a Covered Party; or

(3) The injury, sickness, disease, death or destruction arises out of the furnishing by a Covered Party of services, material, parts or equipment in connection with the planning, construction, maintenance, operation or use of any nuclear facility.

21. Except as provided in Exclusion 7, claims for "bodily injury" or "property damage" arising out of the ownership, maintenance, operation, use, "loading, or unloading" of any aircraft or watercraft.

22. This Agreement does not provide coverage to non-State employees or volunteers except when authorized by State law or added by endorsement to this Agreement and only if, when required, a premium is paid by a State "department" to cover non-State employees or volunteers.

23. Claims for "bodily injury", "property damage", and/or "personal injury" arising out of or imposed by any constitutional provision, statute, court, municipal or local ordinance or law, administrative order, or rule of law dealing with the power of eminent domain, or condemnation, or any acts arising out of or caused by the Covered Party thereunder.

24. Claims for which the Covered Party is obligated to pay "damages" by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for "damages" that the Covered party would have in the absence of the contract of agreement.

25. Claims for "damages" resulting from breach of contract.

26. Claims for any losses resulting from the decline in the value of investments.

27. Claims for "damages" arising out of or resulting from any act or omission which the public policy of the State of Georgia does not permit to be covered, regardless of the theory of liability asserted.

28. Claims arising from:

Any computer, computer system or code including as respects all three, but not limited to firmware, hardware, microprocessors, software, operating systems, networks, peripherals attached to or used in conjunction with any of the foregoing, or any other computerized or electronic equipment or components (hereinafter a Computer System), of any "department" (whether a Covered Party or a third party such as a customer or supplier):

(1) Failing to accurately and properly read, process, perform mathematical calculations, store, sort, distinguish, recognize, accept or interpret prior to, during and after, the year 2000 any data containing date information;

(2) Failing to accurately and properly read and process the fact that the year 2000 is a leap year;

(3) Reading and processing so-called Amagic dates such as the date A9/9/99" or any other date field data used by an organization to signify information other than the date; individually or collectively referred to as the AY2K Problem.

(4) Failing to be compatible with any other entity's Computer System with respect to the Y2K Problem;

Any assessing, auditing, correcting, converting, renovating, rewriting, designing, evaluating, inspecting, installing, maintaining, repairing or replacing any Computer System with respects to a potential or actual Y2K Problem, or any failure to do any of the foregoing activities, or any disclosure, advice, consultation or supervision of any of the foregoing activities or any failure relating thereto.

29. "Personal injury" caused by or at the direction of the Covered Party with the knowledge that the act would violate the rights of another or if done at the direction of the covered Party with the knowledge of its falsity.

30. "Personal injury" arising out an electronic chatroom or bulletin board the Covered Party hosts, owns or over which the covered party exercises control. "Personal injury" coverage would also not apply for claims arising out of the unauthorized use of another's e-mail address, domain or metatag.