Field Equipment Insurance Declarations

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Marine Insurance

Effected with certain Lloyd’s Underwriters (the “Insurer”) through Lloyd’s approved Coverholder (the “Coverholder”):

Catlin Canada, Inc.

36 Toronto Street, Suite 1210, Toronto ON M5C 2C5

Field Equipment Insurance Declarations

Policy Number MAR1076137

Policy Declarations 1

Lloyd's Syndicate 2003 per Catlin Canada Inc. (thereinafter referred to as "the Insurer") hereby agrees, in consideration of the payment to the Company by or on behalf of the Insured of the premium specified herein, to insure against loss, damage or expense in the manner herein provided.

1. Named Insured:

2. Loss Payee(s)

Prospectors & Developers Association of Canada Including individual members as scheduled on the Policy

Individual members as declared and as their interests may appear. 3. Mailing Address: 135 King Street East

Toronto, Ontario M5C 1G6

4. Broker: Partners Indemnity Insurance Brokers Ltd. 400-10 Adelaide St. E.

Toronto, ON M5C 1J3

5. Property Insured: Field Equipment as described on the Schedule of Equipment 6. Period of Insurance: September 19, 2013 to March 19, 2015

Both dates from 12:01 a.m. standard time at the address of the Insured specified above as the Named Insured.

This policy will not automatically renew therefore notice is hereby given that cover will terminate and not be renewed at the expiry date unless a new agreement is reached between the Insurers and the Insured. This is for the purpose of review for the sake of those jurisdictions where tacit renewal applies and does not signal Insurers’ unwillingness to renew the cover from year to year.

7. Premium: As per attached endorsements (additional premiums due as equipment and members added)

8. Policy Currency: Canadian Dollars 9. Territorial Limits: World Wide

10. Limit of Insurance: Maximum $1,000,000 per member 11. Deductibles: 1% minimum $1,000

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Marine Insurance

Effected with certain Lloyd’s Underwriters (the “Insurer”) through Lloyd’s approved Coverholder (the “Coverholder”):

Catlin Canada, Inc.

36 Toronto Street, Suite 1210, Toronto ON M5C 2C5

Field Equipment Insurance Declarations

Policy Number MAR1076137

Policy Declarations 2

13. Policy Sub-Limits:

Debris Removal 25% of the item’s insured value

Duty

Employees Tools & Equipment

25% of the item’s insured value $10,000

Exhibitions and Demonstrations Insured value(s) of equipment at exhibition or demonstration plus 25%

Hiring Charges 25% of the item’s insured value

Increased Costs 25% of the item’s insured value

Newly Acquired Property $500,000

Replacement by Air Removal of Wreck

25% of the item’s insured value 25% of the item’s insured value Sue & Labour/Search & Rescue 25% of the item’s insured value

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Marine Insurance

Effected with certain Lloyd’s Underwriters (the “Insurer”) through Lloyd’s approved Coverholder (the “Coverholder”):

Catlin Canada, Inc.

36 Toronto Street, Suite 1210, Toronto ON M5C 2C5

Field Equipment Insurance Declarations

Policy Number MAR1076137

Policy Declarations 3

The insurance contract consists of this Declarations page as well as all coverage wordings, riders, or endorsements that are attached hereto.

IDENTIFICATION OF INSURER / ACTION AGAINST INSURER

This insurance has been effected in accordance with the authorization granted to the Coverholder by the Underwriting Members of the Syndicates whose definitive numbers and proportions are shown in the Table attached to Agreement No. SC334201346 (hereinafter referred to as “the Underwriter”). The Underwriter shall be liable hereunder each for his own part and not one for another in proportion to the several sums that each of them has subscribed to the said Agreement.

In any action to enforce the obligations of the Underwriter they can be designated or named as “Lloyd’s Underwriters” and such designation shall be binding on the Underwriter as if they had each been individually named as defendant. Service of such proceedings may validly be made upon the Attorney In Fact in Canada for Lloyd’s Underwriters, whose address for such service is 1155 rue Metcalfe, Suite 2220, Montreal, Quebec H3B 2V6.

NOTICE

Any notice to the Underwriters may be validly given to the Coverholder.

In witness whereof this policy has been signed and authorized by the Underwriters, by Catlin Canada, Inc. Per:

Date: September 23, 2013

The Insured is requested to read this policy, and if incorrect, return it immediately for alteration.

In the event of an occurrence likely to result in a Claim under this insurance, immediate notice should be given to the Coverholder whose name and address appears above. All inquiries and disputes are also to be

addressed to this Coverholder.

THIS POLICY CONTAINS A CLAUSE WHICH MAY LIMIT THE AMOUNT PAYABLE.

FOR PURPOSES OF THE INSURANCE COMPANIES ACT (CANADA), THIS

DOCUMENT WAS ISSUED IN THE COURSE OF LLOYD'S UNDERWRITERS'

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FIELD EQUIPMENT WORDING

1. INSURING AGREEMENT

In the event that any of the Property Insured be lost or damaged by the perils insured against, the Insurer will indemnify the Insured against the direct loss so caused to an amount not exceeding whichever is the least of:

a. The cost of repairing the damaged property; or

b. The limit of insurance specified on the Schedule of Insured Equipment in respect of the property lost or

damaged; or

c. The interest of the Insured in respect of the property lost or damaged. Claims for partial loss recoverable hereunder shall not be subject to depreciation.

2. PROPERTY INSURED

The property as described on the Declarations and/or the Schedule of Insured Equipment attached to the Policy.

3. DEDUCTIBLE

The Insurer is liable for the amount by which the loss or damage caused by any of the perils insured against exceeds the amount of the deductible specified on the Declarations in any one occurrence. Should one occurrence give rise to the application of more than one deductible, only the largest individual deductible amount shall apply.

4. LIMIT OF LIABILITY

The Insurer shall not be liable in any one occurrence for more than the total limit of insurance shown on the Declarations, subject to any applicable limit or sub-Limit of Insurance. Each item of property included as Property Insured is deemed to be a separate interest and separately insured in all respects as if a separate policy had been issued for each item and the policy is to be read and applied accordingly.

The insurance coverage and insured value on one item is not applicable to any other.

5. TERRITORY

This Policy provides coverage on the Property Insured anywhere in the world subject to Clause 6. Sanctions.

6. SANCTIONS

This insurance does not provide cover and Insurers shall not be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose them to any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the United Kingdom, European Union or United States of America.

7. INSURING CONDITIONS

This Policy insures against all risks of direct physical loss of or damage to the Property Insured caused by anything not otherwise excluded in the Policy and subject to the Institute clauses below as far as applicable.

7.1 INSTITUTE CLAUSES (as far as applicable)

Institute Cargo Clause (A) CL 382 1/1/09

Institute Cargo Clauses (Air) Excluding Sendings by Post CL 387 1/1/09

Institute War Clauses (Cargo) CL 385 1/1/09

Institute War Clauses (Air Cargo) Excluding Sendings by Post CL388 1/1/09

Institute War Clauses (Sendings by Post) CL390 1/3/09

Institute Strike Clauses (Cargo) CL386 1/1/09

Institute Strikes Clauses (Air Cargo) CL389 1/1/09

Termination of Transit Clause (Terrorism) JC2009/056 1/1/09

Institute Classification Clause CL354 1/1/09

Institute Cyber Attack Exclusion Clause CL380 10/11/03

Institute Radioactive Contamination Chemical Biological Biochemical and Electromagnetic Weapons Exclusion Clause

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FIELD EQUIPMENT WORDING

7.2 CONTINGENT INSURANCE

This Policy is extended to cover equipment while on hire, rent or loan by the Insured to a third party on a contingent basis. Liability under this Policy is contingent only and the Insured’s customer shall assume full responsibility for any loss or damage to such equipment, from the point of acceptance by the customer until return to the Insured.

Should the Insured for any reason fail to obtain payment for equipment lost or damaged these Insurers agree to indemnify the Insured for such loss or damage provided such loss or damage is insured under this Policy.

In consideration of the above the Insured agrees:

a. That this extension is for the benefit of the Insured only and nobody else but the Insured. Any assignment or

disclosure of its existence will render the coverage as provided by this extension null and void.

b. That any rights and benefits that the Insured may possess against the hirers are to be subrogated to the

Insurers.

c. To make every effort to obtain payment for the equipment lost or damaged.

7.3 CARGO ISM

In no case shall this insurance cover loss, damage or expense where the Property Insured is carried by a vessel that is not ISM Code certified or whose owners or operators do not hold an ISM Code Document of Compliance when, at the time of loading of the Property Insured on board the vessel, the Insured was aware, or in the ordinary course of business should have been aware:

a. Either that such vessel was not certified in accordance with ISM code;

b. Or that a current Document of Compliance was not held by her owners or operators.

As required under SOLAS convention 1974 as amended.

The exclusion shall not apply where this insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the Property Insured in good faith under a binding contract.

7.4 DEBRIS REMOVAL

This insurance is extended to cover, in addition to any other amount recoverable hereunder, extra expenses reasonably incurred by the Insured for the removal and disposal of debris of the Property Insured, or part thereof, by reason of damage thereto caused by an insured peril.

In respects to Property Insured in Transit the following exclusions shall apply:

a. Any expenses incurred in consequence of or to prevent or mitigate pollution or contamination or any threat thereof or liability thereof; or

b. The cost of removal of cargo from any vessel or craft

In no event shall Insurers pay more than the limit stated on the Declarations for Debris Removal.

7.5 DUTY

This insurance includes the additional or increased value of the Property Insured, whether such is insured herein or otherwise, by reason of payment of duty and/or levy and/or freight and/or charges and/or VAT at the port or place of destination or during storage.

Including the Insured’s liability for the payment of duty and/or levy imposed by duly appointed authority of any country through which the Property Insured may transit, including the country of origin or destination, prior to delivery to the consignee.

Subject to the same clauses and conditions as the insurance on the Property Insured and to pay the same percentage of loss as may be paid thereon.

In ascertaining the amount of claim recoverable hereunder, credit shall be given for any rebates or refunds that may become allowable.

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FIELD EQUIPMENT WORDING

7.6 EMPLOYEES TOOLS and EQUIPMENT

This insurance is extended to cover loss or damage to tools and equipment owned by the Insured`s employees while in transit, in storage, during use, at exhibition or demonstration site or in the employees private residence or temporary residences such as but not limited to hotel or motel rooms or cabins.

EXCLUDING loss or damage due to

a. Wear and tear or gradual deterioration;

b. Mechanical, electrical or manual operation of the tool and equipment or whilst undergoing any process;

c. Theft or attempted thereat from unattended place of storage which does evidence forcible or violent entry,

exit or removal;

d. While being used for social, domestic or pleasure purposes.

In no event shall Insurers pay for more than the limit stated on the Declarations for Employee Tools and Equipment.

7.7 EXHIBITIONS and DEMONSTRATIONS

This insurance includes coverage while the Property Insured is attending an exhibition or taking part in a demonstration therefore the Policy is extended to include a sub-limit for display stands and other property forming part of the exhibition or demonstration including advertising and promotional items, owned by the Insured or for which they are responsible, whilst in transit to and from and whilst at exhibition or demonstration site for a maximum of 30 days within the domiciled country of the Insured unless endorsed otherwise on the Policy. This extension includes coverage during the unpacking, assembly, dismantling and repacking of the Property Insured, display stands and other property as described in this extension.

In the event that the Property Insured under this extension is lost or damaged in transit to an exhibition and the Insured`s attendance is cancelled as a result this insurance is extended to cover exhibition fees that are not refundable.

In addition to the exclusions listed in Clause 9 this extension excludes loss or damage due to: a. Faulty assembly or construction;

b. Theft from the exhibition or demonstration site unless there is evidence of forcible or violent entry, exit or removal.

c. Scratching, bruising, chipping, denting and subsequent cost of repainting; d. Rust, oxidation and discolouration

e. Twisting, bending and distortion

Exclusions c., d. And e. do not apply if caused by a peril insured against.

In no event will Insurers pay more than the limit as specified on the Declarations for Exhibitions and Demonstrations.

7.8 HIRING CHARGES

Where the policy includes equipment hired in by the Insured this policy extends to include continuing hiring charges that the Insured may be subject to, following a claim under the Policy.

In no event will Insurers pay more than the limit as specified on the Declarations for Hiring Charges.

7.9 INCREASED COSTS

It is agreed that if the Property Insured is lost or damaged beyond commercial use then the Insurers will pay the Insured the hire costs of an equivalent item of equipment. In the event that no item of equipment is readily available, Insures will pay an amount equal to the cost of hiring a similar item.

In no event shall Insurers pay more than the limit specified on the Declarations for Increased costs.

7.10 NEWLY ACQUIRED PROPERTY

This Policy is extended to cover newly acquired property of a nature and quality similar to those insured hereunder rented, chartered, purchased or acquired by the Insured during the term of this Policy provided an itemized list of such additional property, together with the amount of insurance required for each item, is furnished in writing to Insurers within sixty (60) days from the date such additional property was rented, chartered, purchased or acquired by the Insured.

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FIELD EQUIPMENT WORDING

This policy shall cease to insure such newly acquired property if not reported to Insurers within the sixty (60) days reporting period.

The premium for the coverage granted by this endorsement shall be calculated at pro rata of the rate charged for property of a similar nature and quality currently insured under this Policy effective from the date of acquisition. In respect of newly acquired property added under this endorsement the Limit of Insurance for any one item shall be limited to the amount declared on the Declarations for Newly Acquired Property.

7.11 LEASED EQUIPMENT

This Policy provides a sub-limit of insurance, as shown on the Declarations, for equipment that is leased, rented or loaned temporarily by the Insured subject to the insured submitting at policy expiry a list of all such leased, rented or loaned equipment showing values, dates rented or leased and paying an additional premium. Such premium will be calculated at pro rata of current policy rates for the period of insurance.

In no event will Insurers pay more than the limit as specified on the Declarations for Leased Equipment.

7.12 REPLACEMENT BY AIR

This insurance is extended to reimburse the Insured for the costs of air freighting replacement or damaged goods to or from suppliers, customers or repairers, even though the insured goods were not originally dispatched by airfreight.

7.13 REMOVAL of WRECK

Insurers will indemnify the Insured for the reasonable costs or expenses of, or incidental to, the removal of the wreck of the property insured under this extension provided however that:

i. such removal is compulsory by law; and

ii. the value of all stores and materials saved as well as the value of the wreck itself, will first be deducted from such costs or expenses and only the balance thereof, if any, will be recoverable from the Insurer.

In no event shall Insurers pay more than the limit specified on the Declarations for Removal of Wreck any one accident or occurrence.

7.14 SUE and LABOUR (including search and recovery costs)

This insurance covers all charges properly and reasonably incurred by the Insured or their servants or agents, in respect of any loss recoverable under this Policy in pursuance of their duties to:

a. Take such measures as may be reasonable for the purpose of averting or minimising such loss; and/or b. Ensure that all rights against carriers, bailees or other third parties are properly observed and exercised. In no event will Insurers pay more than the limit as specified on the Declarations for Sue and Labour.

7.15 WAIVER of SUBROGATION

Where the Insured is required by contract to waive rights of subrogation against their principals and/or their contractors and/or any other parties interested in the contract or operation, this insurance extends to include such waivers in so far as the contract may require.

All other rights of subrogation against third parties must be protected by the Insured in accordance with the Claims procedures.

It is a requirement of this insurance that the Insured must not waive any rights of subrogation where there is no contractual requirement to do so.

7.16 SPECIAL CONDITIONS FOR UNDERWATER EQUIPMENT and WATERCRAFT

This insurance is extended to include loss of or damage to underwater equipment, watercraft and vehicles such as ROVs, AUVs and similar equipment caused by:

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FIELD EQUIPMENT WORDING

c. Negligence of repairers, charterers or hirers provided that such repairers or charterers are not an Insured

under this Policy.

Provided always that such loss or damage has not resulted from want of due diligence by the Insured, Owners or Managers. Masters, Officers, Crew, Pilots or Equipment Operators are not to be considered Owners within the definition of the Insured for the purposes of this clause.

Charles Taylor Energy, Standard Conditions Precedent to Liability for underwater equipment, as applicable:

1. Equipment is only to be operated by and under the supervision of suitably trained and authorised personnel.

2. Pilots and/or equipment operators should not operate the equipment for more than six hours within a 24 hour

period.

3. Equipment should not be launched or recovered when weather limitations or other external factors exceed the

limits for prudent operations or make it unsafe to do so in the opinion of the equipment’s site Supervisor.

4. Equipment is not to be operated in conditions which exceed the manufacturer’s specified operating parameters.

5. Special precautions to be taken when operating from dynamically positioned vessels to ensure that vehicles are

kept clear of thrusters, down lines or other subsea obstructions around the hull.

6. Underwater vehicles not to be operated in poor through water visibility (less than 3 metres) unless sonar is in

use.

7. Prior approval of Insurers is required when operating declared equipment in unusually hazardous

circumstances. e.g. Blowouts.

When using explosives.

Non routine operations within confined structures of wreckage.

Operations within wave surge zones or in the proximity of heaving moorings and/or objects.

8. Suitable precautions and preservation/maintenance measures to be adopted when storing, handling,

transporting and operating declared equipment

9. Direct communications to be maintained between the pilot, equipment operator, supervisor, winch operator and

bridge or other centre of operation of the support vessel. The support vessel crew to be fully briefed on the underwater operations and tasks including emergency situations which may affect the integrity of the declared equipment and/or that of the support vessel/platform.

10. Vehicles to be fitted with an acoustic beacon and support vessel fitted with a compatible acoustic sensing system when the vehicle is negatively or neutrally buoyant. A flashing light with no daylight sensor cut off is to be fitted to the vehicle if it is positively buoyant.

7.17 SPECIAL CONDITIONS FOR STORAGE RISKS

Whilst the Property Insured is at the premises owned or occupied by the Insured as stated on the Declarations the following additional EXCLUSIONS apply:

a. Mysterious or unexplained disappearance or inventory shortage, misfiling or misplacing of information.

b. At premises owned and/or operated by the Insured:

i. Theft or attempted theft of the Property Insured in the open unless protected by a perimeter fence or

wall of substantial construction and adequate security with all points of access secured during any non working period.

ii. Theft or attempt thereat which does not involve entry to or exit from an unoccupied building or an

unoccupied locked and enclosed compound, site or yard by forcible and violent means and/or actual or threatened assault or violence.

When the Property Insured is away from the Insured’s premise at the operational site all reasonable safety and security precautions must be taken and all security devices available to the Insured must be operational when the operational site is unattended.

8. WARRANTIES

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FIELD EQUIPMENT WORDING

Breach of a policy Warranty can void insurance coverage and affect the Insured’s ability to collect in the event of a claim.

LOCKED VEHICLE WARRANTY

It is WARRANTED that vehicles owned, operated or under the control of the Insured or the Insured’s employees shall comply with the following safety measures whenever carrying Property Insured and left unattended during normal working hours:

a. All doors, windows, trunks, boots and other openings are closed, properly fastened and securely locked

wherever possible; and

b. Any security devices fitted to the vehicle are to be activated; and

c. All contents are removed from view where possible; and

d. The keys are removed and stored in a secure place separate from the vehicle.

Unattended for the purposes of this extension shall mean whenever the vehicle is not at a worksite and is left unsupervised and the Insured and/or employees are unable to directly observe the vehicle.

WAREHOUSE WARRANTY

It is WARRANTED that all Property Insured will be stored a minimum of 10 cm (four Inches) above floor level and that written instructions to this effect will be given to all third party warehouse operators whenever possible.

8.1 SAFETY EQUIPMENT WARRANTY

It is WARRANTED that any protection provided for the safety of the Property Insured will be maintained in good order throughout the currency of this Policy. All equipment must be maintained in accordance with the manufacturer’s recommendations and requirements.

9. EXCLUSIONS

This Policy does not insure:

1. Electrical, mechanical, electromagnetic breakdown or derangement of equipment insured, unless caused by accidental and external means;

2. Any consequential loss except where specified;

3. Loss of data and any costs associated with such loss or any consequential loss resulting from loss of data 4. Mysterious or unexplained disappearance or inventory shortage, misfiling or misplacing of dongles and

software licenses;

5. Any equipment while being used down hole, being the wellhead below the rotary table; 6. Any equipment while being used in a pipe or pipeline;

7. Moth, vermin, insects, inherent vice, latent defect, faulty assembly or process, wear, tear, gradual deterioration, contamination, rust, wet or dry rot, mould, dampness of atmosphere or extremes of temperature unless caused by accidental and external means;

8. Loss of use, delay and/or loss of markets

9. Cash, banknotes, cheques and other negotiable instructions, credit or debit cards, securities for money, vouchers and stamps

10. Vehicles, except when specified on the Declarations and while used as a tool of trade and while not on any road or place where they are subject to the compulsory insurance requirements of Road Traffic Act legislation provided always that this insurance shall not respond to any loss or damage covered by any motor vehicle insurance.

11. Rust, oxidation and discolouration in respect of unpacked and/or partially protected goods, unless proven to have been caused by a peril insured against

12. Equipment stored below ground;

13. Equipment in a commercial retail premises if being held for the purpose of sale or resale unless specifically agreed to in writing by the Insurers;

14. Waterborne vessels or craft except when specified on the Declarations 15. Oil rigs and aircraft.

16. Equipment while being towed behind an aircraft.

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FIELD EQUIPMENT WORDING

10. ADDITIONAL CONDITIONS 10.1 DUTY OF THE INSURED

In the event of loss of or damage to the Property Insured, it is the duty of the Insured (and their servants or agents) to take all reasonable steps to avert or minimise such loss or damage and to ensure that all rights against third parties (for example shipping lines, carriers, warehouse keepers, other bailees and suppliers) are properly preserved and exercised.

In particular, the Insured is required:

a. In no circumstances, except under written protest, to give clean receipts where goods are in doubtful condition.

b. When delivery is made by container, to ensure that the container and its seals are examined immediately by a

responsible official. If the container is delivered damaged or with seals broken or missing, or with seals other than as stated in the shipping documents, to clause the delivery receipt accordingly and retain all defective or irregular seals for subsequent identification.

c. To claim immediately on the relevant third party(ies) for any loss or damage and to give them the opportunity to

arrange their own survey.

d. To give notice in writing to third parties within 3 days of delivery if the loss or damage was not apparent at the time of taking delivery.

e. If loss or damage be occasioned by theft or by malicious persons, to notify the Police and to take all reasonable

steps for discovering the identity of those responsible.

Any claim under this insurance should be submitted without delay, accompanied by all correspondence with carriers and other parties regarding their alleged liability.

10.2 SUBROGATION

The Insured shall at the request and at the expense of Insurers do and concur in doing and permit to be done all such acts and things as may be necessary or reasonably required by Insurers for the purpose of enforcing any rights and remedies or of obtaining relief or indemnity from other parties to which Insurers shall be or would become entitled or subrogated upon paying for or making good any loss or damage under this insurance, whether such acts and things shall be or become necessary or required before or after indemnification.

The Insured shall not be entitled to abandon any property to Insurers.

10.3 CLAIMS CONDITION

It is a Condition Precedent to Liability that Insurers receive the benefit of any sums recovered from carriers or other third parties.

10.4 FRAUD

If any claim under this insurance be in any respect fraudulent, or if any fraudulent means or devices be used by the Insured or anyone acting on their behalf to obtain any benefit under this insurance, or if any loss, destruction or damage covered by this insurance be occasioned by the wilful act or with the connivance of the Insured, then all benefit under this insurance shall be forfeited.

10.4 MISREPRESENTATION

This insurance shall be voidable by Insurers in the event of misrepresentation, misdescription or non-disclosure in any material particular.

10.5 MATERIAL CHANGE

Any change material to the risk and within the control and knowledge of the Insured must be reported in writing to Insurers or their local agent. Insurers reserve the right to amend the rates, terms and conditions based on the material change advised.

10.6 TERMINATION

This insurance may be cancelled:

a. By Insurers giving to the Insured written notice of termination at least:

i. fifteen days before the effective date of termination if the Policy is terminated by registered mail for

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FIELD EQUIPMENT WORDING

ii. thirty days before the effective date of termination if the Policy is terminated by registered mail for any other reason;

However, notice is not required to be by registered mail and is reduced to 7 days in respect of War, Strikes, Riots and Civil Commotion risks and to 48 hours in respect of Strikes, Riots and Civil Commotions risks on shipments to or from the United States of America.

b. By the Insured at any time on written request.

10.6 CONTRIBUTION

If on the happening of any loss or damage to property in consequence of which a claim is or may be made under this Policy there is in force more than one contract covering the same interest, the liability of the Insurer hereunder shall be limited to its rateable proportion of such claim.

10.7 LAW AND JURISDICTION

This Policy is to be governed and construed in accordance with English Law as modified by Canadian Law and the Marine Insurance Act S.C. 1993 c.22. This clause shall be paramount and over ride any other Law and Jurisdiction clause contained in this Policy which conflicts with it including any clauses or conditions contained within the Institute Clauses attached to the Policy.

10.8 COMPLAINTS

Catlin Canada Inc. is dedicated to providing a high quality service and wants to ensure that it maintains this at all times. If the Insured feels that Catlin has not offered a first class service or if the Insured has any questions or concerns about the Policy or the handling of a Claim, the Insured should, in the first instance, contact its insurance broker through whom this insurance was placed.

If the Insured is unable to resolve the situation and wishes to make a complaint, the Insured can do so at any time by referring the matter to:

Complaints Department Catlin Canada Inc.

36 Toronto Street, Suite 1210 Toronto, Ontario M5C 2C5 Tel No: +1 416 644 3312

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1/1/09 INSTITUTE CARGO CLAUSES (A) RISKS COVERED

Risks

1. This insurance covers all risks of loss of or damage to the subject-matter insured except as excluded by the provisions of Clauses 4, 5, 6 and 7 below.

General Average

2. This insurance covers general average and salvage charges, adjusted or determined according to the contract of carriage and/or the governing law and practice, incurred to avoid or in connection with the avoidance of loss from any cause except those excluded in Clauses 4, 5, 6 and 7 below.

"Both to Blame Collision Clause"

3. This insurance indemnifies the Assured, in respect of any risk insured herein, against liability incurred under any Both to Blame Collision Clause in the contract of carriage. In the event of any claim by carriers under the said Clause, the Assured agree to notify the Insurers who shall have the right, at their own cost and expense, to defend the Assured against such claim.

EXCLUSIONS

4. In no case shall this insurance cover

4.1 loss damage or expense attributable to wilful misconduct of the Assured

4.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured

4.3 loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject-matter insured to withstand the ordinary incidents of the insured transit where such packing or preparation is carried out by the Assured or their employees or prior to the attachment of this insurance (for the purpose of these Clauses "packing" shall be deemed to include stowage in a container and "employees" shall not include independent contractors) 4.4 loss damage or expense caused by inherent vice or nature of the subject-matter insured

4.5 loss damage or expense caused by delay, even though the delay be caused by a risk insured against (except expenses payable under Clause 2 above)

4.6 loss damage or expense caused by insolvency or financial default of the owners managers charterers or operators of the vessel where, at the time of loading of the subject-matter insured on board the vessel, the Assured are aware, or in the ordinary course of business should be aware, that such insolvency or financial default could prevent the normal prosecution of the voyage

This exclusion shall not apply where the contract of insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the subject-matter insured in good faith under a binding contract

4.7 loss damage or expense directly or indirectly caused by or arising from the use of any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

5. 5.1 In no case shall this insurance cover loss damage or expense arising from

5.1.1 unseaworthiness of vessel or craft or unfitness of vessel or craft for the safe carriage of the subject-matter insured, where the Assured are privy to such unseaworthiness or unfitness, at the time the subject-matter insured is loaded therein

5.1.2 unfitness of container or conveyance for the safe carriage of the subject-matter insured, where loading therein or thereon is carried out prior to attachment of this insurance or by the Assured or their employees and they are privy to such unfitness at the time of loading.

5.2 Exclusion 5.1.1 above shall not apply where the contract of insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the subject-matter insured in good faith under a binding contract.

5.3 The Insurers waive any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the subject-matter insured to destination.

6. In no case shall this insurance cover loss damage or expense caused by

6.1 war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power

6.2 capture seizure arrest restraint or detainment (piracy excepted), and the consequences thereof or any attempt thereat

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7.1 caused by strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions

7.2 resulting from strikes, lock-outs, labour disturbances, riots or civil commotions

7.3 caused by any act of terrorism being an act of any person acting on behalf of, or in connection with, any organisation which carries out activities directed towards the overthrowing or influencing, by force or violence, of any government whether or not legally constituted

7.4 caused by any person acting from a political, ideological or religious motive. DURATION

Transit Clause

8. 8.1 Subject to Clause 11 below, this insurance attaches from the time the subject-matter insured is first moved in the warehouse or at the place of storage (at the place named in the contract of insurance) for the purpose of the immediate loading into or onto the carrying vehicle or other conveyance for the commencement of transit, continues during the ordinary course of transit and terminates either

8.1.1 on completion of unloading from the carrying vehicle or other conveyance in or at the final warehouse or place of storage at the destination named in the contract of insurance, 8.1.2 on completion of unloading from the carrying vehicle or other conveyance in or at any other warehouse or place of storage, whether prior to or at the destination named in the contract of insurance, which the Assured or their employees elect to use either for storage other than in the ordinary course of transit or for allocation or distribution, or 8.1.3 when the Assured or their employees elect to use any carrying vehicle or other

conveyance or any container for storage other than in the ordinary course of transit or 8.1.4 on the expiry of 60 days after completion of discharge over side of the subject-matter

insured from the oversea vessel at the final port of discharge, whichever shall first occur. 8.2 If, after discharge overside from the oversea vessel at the final port of discharge, but prior to

termination of this insurance, the subject-matter insured is to be forwarded to a destination other than that to which it is insured, this insurance, whilst remaining subject to termination as provided in Clauses 8.1.1 to 8.1.4, shall not extend beyond the time the subject-matter insured is first moved for the purpose of the commencement of transit to such other destination.

8.3 This insurance shall remain in force (subject to termination as provided for in Clauses 8.1.1 to 8.1.4 above and to the provisions of Clause 9 below) during delay beyond the control of the Assured, any deviation, forced discharge, reshipment or transhipment and during any variation of the adventure arising from the exercise of a liberty granted to carriers under the contract of carriage.

Termination of Contract of Carriage

9. If owing to circumstances beyond the control of the Assured either the contract of carriage is terminated at a port or place other than the destination named therein or the transit is otherwise terminated before unloading of the subject-matter insured as provided for in Clause 8 above, then this insurance shall also terminate unless prompt notice is given to the Insurers and continuation of

cover is requested when this insurance shall remain in force, subject to an additional premium if required by the Insurers, either

9.1 until the subject-matter insured is sold and delivered at such port or place, or, unless otherwise specially agreed, until the expiry of 60 days after arrival of the subject-matter insured at such port or place, whichever shall first occur,

or

9.2 if the subject-matter insured is forwarded within the said period of 60 days (or any agreed extension thereof) to the destination named in the contract of insurance or to any other destination, until terminated in accordance with the provisions of Clause 8 above.

Change of Voyage

10. 10.1 Where, after attachment of this insurance, the destination is changed by the Assured, this must be notified promptly to Insurers for rates and terms to be agreed. Should a loss occur prior to such agreement being obtained cover may be provided but only if cover would have been available at a reasonable commercial market rate on reasonable market terms.

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the ship sails for another destination, this insurance will nevertheless be deemed to have attached at commencement of such transit.

CLAIMS

Insurable Interest

11. 11.1 In order to recover under this insurance the Assured must have an insurable interest in the subject- matter insured at the time of the loss.

11.2 Subject to Clause 11.1 above, the Assured shall be entitled to recover for insured loss occurring during the period covered by this insurance, notwithstanding that the loss occurred before the contract of insurance was concluded, unless the Assured were aware of the loss and the Insurers were not.

Forwarding Charges

12. Where, as a result of the operation of a risk covered by this insurance, the insured transit is terminated at a port or place other than that to which the subject-matter insured is covered under this insurance, the Insurers will reimburse the Assured for any extra charges properly and reasonably incurred in unloading storing and forwarding the subject-matter insured to the destination to which it is insured.

This Clause 12, which does not apply to general average or salvage charges, shall be subject to the exclusions contained in Clauses 4, 5, 6 and 7 above, and shall not include charges arising from the fault negligence insolvency or financial default of the Assured or their employees.

Constructive Total Loss

13. No claim for Constructive Total Loss shall be recoverable hereunder unless the subject-matter insured is reasonably abandoned either on account of its actual total loss appearing to be unavoidable or because the cost of recovering, reconditioning and forwarding the subject-matter insured to the destination to which it is insured would exceed its value on arrival.

Increased Value

14. 14.1 If any Increased Value insurance is effected by the Assured on the subject-matter insured under this insurance the agreed value of the subject-matter insured shall be deemed to be increased to the total amount insured under this insurance and all Increased Value insurances covering the loss, and liability under this insurance shall be in such proportion as the sum insured under this insurance bears to such total amount insured.

In the event of claim the Assured shall provide the Insurers with evidence of the amounts insured under all other insurances.

14.2 Where this insurance is on Increased Value the following clause shall apply:

The agreed value of the subject-matter insured shall be deemed to be equal to the total amount insured under the primary insurance and all Increased Value insurances covering the loss and effected on the subject-matter insured by the Assured, and liability under this insurance shall be in such proportion as the sum insured under this insurance bears to such total amount insured.

In the event of claim the Assured shall provide the Insurers with evidence of the amounts insured under all other insurances.

BENEFIT OF INSURANCE 15. This insurance

15.1 covers the Assured which includes the person claiming indemnity either as the person by or on whose behalf the contract of insurance was effected or as an assignee,

15.2 shall not extend to or otherwise benefit the carrier or other bailee. MINIMISING LOSSES

Duty of Assured

16. It is the duty of the Assured and their employees and agents in respect of loss recoverable hereunder

16.1 to take such measures as may be reasonable for the purpose of averting or minimising such loss,

and

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Waiver

17. Measures taken by the Assured or the Insurers with the object of saving, protecting or recovering the subject-matter insured shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party.

AVOIDANCE OF DELAY

18. It is a condition of this insurance that the Assured shall act with reasonable despatch in all circumstances within their control.

LAW AND PRACTICE

19. This insurance is subject to English law and practice.

NOTE:- Where a continuation of cover is requested under Clause 9, or a change of destination is notified under Clause 10, there is an obligation to give prompt notice to the Insurers and the right to such cover is dependent upon compliance with this obligation.

© Copyright: 11/08 - Lloyd's Market Association (LMA) and International Underwriting Association of London (IUA).

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1/1/09

INSTITUTE CARGO CLAUSES (AIR) (excluding sendings by Post) RISKS COVERED

Risks

1. This insurance covers all risks of loss of or damage to the subject-matter insured except as excluded by the provisions of Clauses 3, 4 and 5 below.

Salvage Charges

2. This insurance covers salvage charges incurred to avoid or in connection with the avoidance of loss from any cause except those excluded in Clauses 3, 4 and 5 below.

EXCLUSIONS

3. In no case shall this insurance cover:

3.1 loss damage or expense attributable to wilful misconduct of the Assured

3.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured

3.3 loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject-matter insured to withstand the ordinary incidents of the insured transit where such packing or preparation is carried out by the Assured or their employees or prior to the attachment of this insurance (for the purpose of these Clauses "packing" shall be deemed to include stowage in a container and "employees" shall not include independent contractors) 3.4 loss damage or expense caused by inherent vice or nature of the subject-matter insured

3.5 loss damage or expense arising from unfitness of aircraft conveyance or container for the safe carriage of the subject-matter insured, where loading therein or thereon is carried out prior to attachment of this insurance or by the Assured or their employees and they are privy to such unfitness at the time of loading. This exclusion shall not apply where the contract of insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the subject-matter insured in good faith under a binding contract.

3.6 loss damage or expense caused by delay, even though the delay be caused by a risk insured against

3.7 loss damage or expense caused by insolvency or financial default of the owners managers charterers or operators of the aircraft where, at the time of loading of the subject-matter insured on board the aircraft, the Assured are aware, or in the ordinary course of business should be aware, that such insolvency or financial default could prevent the normal prosecution of the transit

This exclusion shall not apply where the contract of insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the subject-matter insured in good faith under a binding contract

3.8 loss damage or expense directly or indirectly caused by or arising from the use of any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

4. In no case shall this insurance cover loss damage or expense caused by

4.1 war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power

4.2 capture seizure arrest restraint or detainment (piracy excepted), and the consequences thereof or any attempt thereat

4.3 derelict mines torpedoes bombs or other derelict weapons of war. 5. In no case shall this insurance cover loss damage or expense

5.1 caused by strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions

5.2 resulting from strikes, lock-outs, labour disturbances, riots or civil commotions

5.3 caused by any act of terrorism being an act of any person acting on behalf of, or in connection with, any organisation which carries out activities directed towards the overthrowing or influencing, by force or violence, of any government whether or not legally constituted

5.4 caused by any person acting from a political, ideological or religious motive. DURATION

Transit Clause

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6.1.1 on completion of unloading from the carrying vehicle or other conveyance in or at the final warehouse, premises or place of storage at the destination named in the contract of insurance,

6.1.2 on completion of unloading from the carrying vehicle or other conveyance in or at any other warehouse, premises or place of storage, whether prior to or at the destination named in the contract of insurance, which the Assured or their employees elect to use either for storage other than in the ordinary course of transit or for allocation or distribution, or

6.1.3 when the Assured or their employees elect to use any carrying vehicle or other conveyance or any container for storage other than in the ordinary course of transit or 6.1.4 on the expiry of 30 days after completion of unloading of the subject-matter insured from

the aircraft at the final place of discharge, whichever shall first occur.

6.2 If, after unloading from the aircraft at the final place of discharge, but prior to termination of this insurance, the subject-matter insured is to be forwarded to a destination other than that to which it is insured, this insurance, whilst remaining subject to termination as provided in Clauses 6.1.1 to 6.1.4, shall not extend beyond the time the subject-matter insured is first moved for the purpose of the commencement of transit to such other destination.

6.3 This insurance shall remain in force (subject to termination as provided for in Clauses 6.1.1 to 6.1.4 above and to the provisions of Clause 7 below) during delay beyond the control of the Assured, any deviation, forced discharge, reshipment or transhipment and during any variation of the adventure arising from the exercise of a liberty granted to the air carriers under the contract of carriage.

Termination of Contract of Carriage

7. If owing to circumstances beyond the control of the Assured either the contract of carriage is terminated at a place other than the destination named therein or the transit is otherwise terminated before unloading of the subject-matter insured as provided for in Clause 6 above, then this insurance shall also terminate unless prompt notice is given to the Insurers and continuation of

cover is requested when this insurance shall remain in force, subject to an additional premium if required by the Insurers, either

7.1 until the subject-matter insured is sold and delivered at such place, or, unless otherwise specially agreed, until the expiry of 30 days after arrival of the subject-matter insured at such place, whichever shall first occur,

or

7.2 if the subject-matter insured is forwarded within the said period of 30 days (or any agreed extension thereof) to the destination named in the contract of insurance or to any other destination, until terminated in accordance with the provisions of Clause 6 above.

Change of Transit

8. 8.1 Where, after attachment of this insurance, the destination is changed by the Assured, this must be notified promptly to Insurers for rates and terms to be agreed. Should a loss occur prior to such agreement being obtained cover may be provided but only if cover would have been available at a reasonable commercial market rate on reasonable market terms.

8.2 Where the subject-matter insured commences the transit contemplated by this insurance (in accordance with Clause 6.1), but, without the knowledge of the Assured or their employees the aircraft leaves for another destination, this insurance will nevertheless be deemed to have attached at commencement of such transit.

CLAIMS

Insurable Interest

9. 9.1 In order to recover under this insurance the Assured must have an insurable interest in the subject-matter insured at the time of the loss.

9.2 Subject to Clause 9.1 above, the Assured shall be entitled to recover for insured loss occurring during the period covered by this insurance, notwithstanding that the loss occurred before the contract of insurance was concluded, unless the Assured were aware of the loss and the Insurers were not.

Forwarding Charges

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This Clause 10, which does not apply to salvage charges, shall be subject to the exclusions contained in Clauses 3, 4 and 5 above, and shall not include charges arising from the fault negligence insolvency or financial default of the Assured or their employees.

Constructive Total Loss

11. No claim for Constructive Total Loss shall be recoverable hereunder unless the subject-matter insured is reasonably abandoned either on account of its actual total loss appearing to be unavoidable or because the cost of recovering, reconditioning and forwarding the subject-matter insured to the destination to which it is insured would exceed its value on arrival.

Increased Value

12. 12.1 If any Increased Value insurance is effected by the Assured on the subject-matter insured under this insurance the agreed value of the subject-matter insured shall be deemed to be increased to the total amount insured under this insurance and all Increased Value insurances covering the loss, and liability under this insurance shall be in such proportion as the sum insured under this insurance bears to such total amount insured.

In the event of claim the Assured shall provide the Insurers with evidence of the amounts insured under all other insurances.

12.2 Where this insurance is on Increased Value the following clause shall apply:

The agreed value of the subject-matter insured shall be deemed to be equal to the total amount insured under the primary insurance and all Increased Value insurances covering the loss and effected on the subject-matter insured by the Assured, and liability under this insurance shall be in such proportion as the sum insured under this insurance bears to such total amount insured.

In the event of claim the Assured shall provide the Insurers with evidence of the amounts insured under all other insurances.

BENEFIT OF INSURANCE 13. This insurance

13.1 covers the Assured which includes the person claiming indemnity either as the person by or on whose behalf the contract of insurance was effected or as an assignee,

13.2 shall not extend to or otherwise benefit the carrier or other bailee. MINIMISING LOSSES

Duty of Assured

14. It is the duty of the Assured and their employees and agents in respect of loss recoverable hereunder

14.1 to take such measures as may be reasonable for the purpose of averting or minimising such loss,

and

14.2 to ensure that all rights against carriers, bailees or other third parties are properly preserved and exercised

and the Insurers will, in addition to any loss recoverable hereunder, reimburse the Assured for any charges properly and reasonably incurred in pursuance of these duties.

Waiver

15. Measures taken by the Assured or the Insurers with the object of saving, protecting or recovering the subject-matter insured shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party.

AVOIDANCE OF DELAY

16. It is a condition of this insurance that the Assured shall act with reasonable despatch in all circumstances within their control.

LAW AND PRACTICE

17. This insurance is subject to English law and practice.

NOTE:- Where a continuation of cover is requested under Clause 7, or a change of destination is notified under Clause 8, there is an obligation to give prompt notice to the Insurers and the right to such cover is dependent upon compliance with this obligation.

© Copyright: 12/08 - Lloyd's Market Association (LMA) and International Underwriting Association of London (IUA).

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1/1/09

INSTITUTE WAR CLAUSES (CARGO) RISKS COVERED

Risks

1. This insurance covers, except as excluded by the provisions of Clauses 3 and 4 below, loss of or damage to the subject-matter insured caused by

1.1 war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power

1.2 capture seizure arrest restraint or detainment, arising from risks covered under 1.1 above, and the consequences thereof or any attempt thereat

1.3 derelict mines torpedoes bombs or other derelict weapons of war.

General Average

2. This insurance covers general average and salvage charges, adjusted or determined according to the contract of carriage and/or the governing law and practice, incurred to avoid or in connection with the avoidance of loss from a risk covered under these Clauses.

EXCLUSIONS

3. In no case shall this insurance cover

3.1 loss damage or expense attributable to wilful misconduct of the Assured

3.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured

3.3 loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject-matter insured to withstand the ordinary incidents of the insured transit where such packing or preparation is carried out by the Assured or their employees or prior to the attachment of this insurance (for the purpose of these Clauses "packing" shall be deemed to include stowage in a container and "employees" shall not include independent contractors)

3.4 loss damage or expense caused by inherent vice or nature of the subject-matter insured

3.5 loss damage or expense caused by delay, even though the delay be caused by a risk insured against (except expenses payable under Clause 2 above)

3.6 loss damage or expense caused by insolvency or financial default of the owners managers charterers or operators of the vessel where, at the time of loading of the subject-matter insured on board the vessel, the Assured are aware, or in the ordinary course of business should be aware, that such insolvency or financial default could prevent the normal prosecution of the voyage

This exclusion shall not apply where the contract of insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the subject-matter insured in good faith under a binding contract

3.7 any claim based upon loss of or frustration of the voyage or adventure

3.8 loss damage or expense directly or indirectly caused by or arising from any hostile use of any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

4. 4.1 In no case shall this insurance cover loss damage or expense arising from

4.1.1 unseaworthiness of vessel or craft or unfitness of vessel or craft for the safe carriage of the subject-matter insured, where the Assured are privy to such unseaworthiness or unfitness, at the time the subject-matter insured is loaded therein

4.1.2 unfitness of container or conveyance for the safe carriage of the subject-matter insured, where loading therein or thereon is carried out prior to attachment of this insurance or by the Assured or their employees and they are privy to such unfitness at the time of loading.

4.2 Exclusion 4.1.1 above shall not apply where the contract of insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the subject-matter insured in good faith under a binding contract.

4.3 The Insurers waive any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the subject-matter insured to destination.

DURATION Transit Clause

5. 5.1 This insurance

5.1.1 attaches only as the subject-matter insured and as to any part as that part is loaded on an oversea vessel

and

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or

on expiry of 15 days counting from midnight of the day of arrival of the vessel at the final port or place of discharge,

whichever shall first occur; nevertheless,

subject to prompt notice to the Insurers and to an additional premium, such insurance

5.1.3 reattaches when, without having discharged the subject-matter insured at the final port or place of discharge, the vessel sails therefrom,

and

5.1.4 terminates, subject to 5.2 and 5.3 below, either as the subject-matter insured and as to any part as that part is thereafter discharged from the vessel at the final (or substituted) port or place of discharge,

or

on expiry of 15 days counting from midnight of the day of re-arrival of the vessel at the final port or place of discharge or arrival of the vessel at a substituted port or place of discharge,

whichever shall first occur.

5.2 If during the insured voyage the oversea vessel arrives at an intermediate port or place to discharge the subject-matter insured for on-carriage by oversea vessel or by aircraft, or the subject-matter insured is discharged from the vessel at a port or place of refuge, then, subject to 5.3 below and to an additional premium if required, this insurance continues until the expiry of 15 days counting from midnight of the day of arrival of the vessel at such port or place, but thereafter reattaches as the subject-matter insured and as to any part as that part is loaded on an on-carrying oversea vessel or aircraft. During the period of 15 days the insurance remains in force after discharge only whilst the subject-matter insured and as to any part as that part is at such port or place. If the subject-matter insured is on-carried within the said period of 15 days or if the insurance reattaches as provided in this Clause 5.2

5.2.1 where the on-carriage is by oversea vessel this insurance continues subject to the terms of these Clauses,

or

5.2.2 where the on-carriage is by aircraft, the current Institute War Clauses (Air Cargo) (excluding sendings by Post) shall be deemed to form part of the contract of insurance and shall apply to the on-carriage by air.

5.3 If the voyage in the contract of carriage is terminated at a port or place other than the destination agreed therein, such port or place shall be deemed the final port of discharge and this insurance terminates in accordance with 5.1.2. If the subject-matter insured is subsequently reshipped to the original or any other destination, then provided notice is given to the Insurers before the commencement of such

further transit and subject to an additional premium, this insurance reattaches

5.3.1 in the case of the subject-matter insured having been discharged, as the subject-matter insured and as to any part as that part is loaded on the on-carrying vessel for the voyage;

5.3.2 in the case of the subject-matter not having been discharged, when the vessel sails from such deemed final port of discharge;

thereafter this insurance terminates in accordance with 5.1.4.

5.4 The insurance against the risks of mines and derelict torpedoes, floating or submerged, is extended whilst the subject-matter insured or any part thereof is on craft whilst in transit to or from the oversea vessel, but in no case beyond the expiry of 60 days after discharge from the oversea vessel unless otherwise specially agreed by the Insurers.

5.5 Subject to prompt notice to Insurers, and to an additional premium if required, this insurance shall remain in force within the provisions of these Clauses during any deviation, or any variation of the adventure arising from the exercise of a liberty granted to carriers under the contract of carriage. (For the purpose of Clause 5 "arrival" shall be deemed to mean that the vessel is anchored, moored or otherwise secured at a berth or place within the Harbour Authority area. If such a berth or place is not available, arrival is deemed to have occurred when the vessel first anchors, moors or otherwise secures either at or off the intended port or place of discharge "oversea vessel" shall be deemed to mean a vessel carrying the subject-matter from one port or place to another where such voyage involves a sea passage by that vessel)

Change of Voyage

6. 6.1 Where, after attachment of this insurance, the destination is changed by the Assured, this must be notified promptly to Insurers for rates and terms to be agreed. Should a loss occur prior to such agreement being obtained cover may be provided but only if cover would have been available at a reasonable commercial market rate on reasonable market terms.

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7. Anything contained in this contract which is inconsistent with Clauses 3.7, 3.8 or 5 shall, to the extent of such inconsistency, be null and void.

CLAIMS

Insurable Interest

8. 8.1 In order to recover under this insurance the Assured must have an insurable interest in the subject- matter insured at the time of the loss.

8.2 Subject to Clause 8.1 above, the Assured shall be entitled to recover for insured loss occurring during the period covered by this insurance, notwithstanding that the loss occurred before the contract of insurance was concluded, unless the Assured were aware of the loss and the Insurers were not. Increased Value

9. 9.1 If any Increased Value insurance is effected by the Assured on the subject-matter insured under this insurance the agreed value of the subject-matter insured shall be deemed to be increased to the total amount insured under this insurance and all Increased Value insurances covering the loss, and liability under this insurance shall be in such proportion as the sum insured under this insurance bears to such total amount insured.

In the event of claim the Assured shall provide the Insurers with evidence of the amounts insured under all other insurances.

9.2 Where this insurance is on Increased Value the following clause shall apply:

The agreed value of the subject-matter insured shall be deemed to be equal to the total amount insured under the primary insurance and all Increased Value insurances covering the loss and effected on the subject-matter insured by the Assured, and liability under this insurance shall be in such proportion as the sum insured under this insurance bears to such total amount insured.

In the event of claim the Assured shall provide the Insurers with evidence of the amounts insured under all other insurances.

BENEFIT OF INSURANCE 10. This insurance

10.1 covers the Assured which includes the person claiming indemnity either as the person by or on whose behalf the contract of insurance was effected or as an assignee,

10.2 shall not extend to or otherwise benefit the carrier or other bailee. MINIMISING LOSSES

Duty of Assured

11. It is the duty of the Assured and their employees and agents in respect of loss recoverable hereunder 11.1 to take such measures as may be reasonable for the purpose of averting or minimising such loss,

and

11.2 to ensure that all rights against carriers, bailees or other third parties are properly preserved and exercised

and the Insurers will, in addition to any loss recoverable hereunder, reimburse the Assured for any charges properly and reasonably incurred in pursuance of these duties.

Waiver

12. Measures taken by the Assured or the Insurers with the object of saving, protecting or recovering the subject-matter insured shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party.

AVOIDANCE OF DELAY

13. It is a condition of this insurance that the Assured shall act with reasonable despatch in all circumstances within their control.

LAW AND PRACTICE

14. This insurance is subject to English law and practice.

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1/1/09

INSTITUTE WAR CLAUSES (AIR CARGO) (excluding sendings by Post)

RISKS COVERED Risks

1. This insurance covers, except as excluded by the provisions of Clause 3 below, loss of or damage to the subject-matter insured caused by

1.1 war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power

1.2 capture seizure arrest restraint or detainment, arising from risks covered under 1.1 above, and the consequences thereof or any attempt thereat

1.3 derelict mines torpedoes bombs or other derelict weapons of war.

Salvage Charges

2. This insurance covers salvage charges, incurred to avoid or in connection with the avoidance of loss from any cause except those excluded in Clause 3 below.

EXCLUSIONS

3. In no case shall this insurance cover

3.1 loss damage or expense attributable to wilful misconduct of the Assured

3.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured

3.3 loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject-matter insured to withstand the ordinary incidents of the insured transit where such packing or preparation is carried out by the Assured or their employees or prior to the attachment of this insurance (for the purpose of these Clauses "packing" shall be deemed to include stowage in a container and "employees" shall not include independent contractors)

3.4 loss damage or expense caused by inherent vice or nature of the subject-matter insured

3.5 loss damage or expense arising from unfitness of aircraft conveyance or container for the safe carriage of the subject-matter insured, where loading therein or thereon is carried out prior to attachment of this insurance or by the Assured or their employees and they are privy to such unfitness at the time of loading.

This exclusion shall not apply where the contract of insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the subject-matter insured in good faith under a binding contract.

3.6 loss damage or expense caused by delay, even though the delay be caused by a risk insured against 3.7 loss damage or expense caused by insolvency or financial default of the owners managers charterers or

operators of the aircraft where, at the time of loading of the subject-matter insured on board the aircraft, the Assured are aware, or in the ordinary course of business should be aware, that such insolvency or financial default could prevent the normal prosecution of the transit

This exclusion shall not apply where the contract of insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the subject-matter insured in good faith under a binding contract

3.8 any claim based upon loss of or frustration of the transit or adventure

3.9 loss damage or expense directly or indirectly caused by or arising from any hostile use of any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

DURATION Transit Clause

4. 4.1 This insurance

4.1.1 attaches only as the subject-matter insured and as to any part as that part is loaded on the aircraft for the commencement of the air transit insured

and

4.1.2 terminates, subject to 4.2 and 4.3 below, either as the subject-matter insured and as to any part as that part is discharged from the aircraft at the final place of discharge

or

on expiry of 15 days counting from midnight of the day of arrival of the aircraft at the final place of discharge, whichever shall first occur; nevertheless, subject to prompt notice to the

Insurers and to an additional premium, such insurance

4.1.3 reattaches when, without having discharged the subject-matter insured at the final place of discharge, the aircraft departs therefrom,

Figure

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