SKULD STATUTES, RULES AND CHARTERERS TERMS & CONDITIONS AMENDMENTS FOR THE 2012 POLICY YEAR

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1 TO ALL MEMBERS January 2012 SKULD STATUTES, RULES AND CHARTERERS TERMS & CONDITIONS AMENDMENTS FOR THE 2012 POLICY YEAR STATUTES The following changes to the Statutes have been adopted at Annual General Meetings of Assuranceforeningen Skuld ( the Association ). New text is underlined and deletions are struck through Membership Membership in the Association is open to shipowners, operators, disponent owners, managing owners, insurers and charterers of ships including such mobile floating structures as may from time to time be decided by the Board of Directors. This amendment has been made to reflect the terminology generally used in Certificates of Entry. 1.2 The General Meeting The ordinary General Meeting shall be held within 6 months after the expiry of the accounting year. An extraordinary General Meeting shall be held whenever the Board of Directors or the Members' Committee considers it necessary or when at least 10 members who hold between them a minimum of votes so demand The entered tonnage of each member shall entitle the member to a maximum number of votes calculated on the total entered gross tonnage: 1 up to and including 20,000 one vote up to and including 50,000 a total of 2 votes up to and including 100,000 a total of 3 votes up to and including 200,000 a total of 4 votes up to and including 400,000 a total of 5 votes up to and including 600,000 a total of 6 votes up to and including 800,000 a total of 7 votes up to and including 1,000,000 a total of 8 votes Each 500,000 GT in excess of the first 1,000,000 GT shall entitle the member to 1 additional vote.

2 1.2.7 Each member shall be entitled to exercise the number of votes calculated on the basis of total gross tonnage entered and estimated total call as follows and (a) total gross tonnage entered: Total gross tonnage entered Number of votes Up to 20, ,001 to 50, ,001 to 100, ,001 to 200, ,001 to 400, ,001 to 600, ,001 to 800, ,001 to 1,000, ,000,001 to 1,500, ,500,001 to 2,000, For each 500,000 or part thereof in one additional vote excess of 2,000,000 (b) estimated total call: For each USD 50,000 or part thereof - one vote Gross tonnage shall be calculated on the basis of the recorded tonnage entered on the day on which the notice of the Meeting is sent to members. The estimated total call shall be the amount determined by the Association under Rule 4.2 for the policy year in which the Meeting takes place Entries for a period of less than one year or entries not subject to the applicable accounting year's supplementary call shall not give the right to vote. The right to vote shall be calculated on the recorded tonnage entered on the day on which the notice of meeting is sent to members. Voting rights shall not, however, be calculated on vessels which have in the meantime ceased to be entered Members shall not be entitled to vote in respect of entries (a) for a period of less than one year, (b) which are not subject to supplementary calls for the policy year in which the Meeting takes place, (c) for vessels which are not entered in the Association on the day of the Meeting, or (d) for which there are any outstanding premiums on the day of the Meeting Every member may be represented by a proxy at the General Meeting. Only members with voting rights according to are eligible to act as proxy. No one may, however, cast votes, either own or as proxy for another member, which amount to more than 1/10 of the total votes present at the meeting The call to the General Meeting may require request the participants of the Meeting to give notice in writing to the Association at least two days in advance of the Meeting as to which member they will represent. Such notice shall be made in writing and must have arrived during office hours at least two days before the General Meeting. The amendments to Article 1.2 introduce a system which allocates voting rights which reflect the contribution which members make to the Association in the form of premium, as well as

3 the amount of entered tonnage. This combined approach introduces premium weighting to the existing tonnage arrangements. As this will lead to an increase in the total number of votes, the minimum number of votes required to call a General Meeting has been increased from 20 to 100 (Article 1.2.2). A new provision has been introduced to the effect that voting rights are lost if there are unpaid premiums (Article 1.2.8(d)). Articles have been amended to ensure that the procedures for proxy voting are in line with requirements under Norwegian law The Board of Directors as Audit Committee The Audit Committee shall in accordance with Regulation no. 18 of 11 January 2010 be comprised of all of the members of the Board of Directors The Board of Directors shall collectively have the necessary qualifications to ensure the functions of the Audit Committee. At least one of the members shall be independent of the Association and its business and have expertise relating to accounting or audit The Board of Directors as Audit Committee shall perform the duties stipulated in Sections 5-11 of the Act on Insurance Activities. This new Article has been adopted in order to comply with Norwegian legislation requiring the Association to establish an Audit Committee. 2.1 Arbitration and Choice of Law 2.1 Arbitration and Choice of Law Article Arbitration and Choice of Law These Statutes (Bye-Laws) are governed by Norwegian Law. The Insurance Contracts Act of 1989 shall not apply If nothing is agreed to the contrary, disputes between the Association and a member or a former member or a co-assured or a non-member who is or has been held covered under a policy issued by the Association in connection with his membership or insurance shall be decided by Arbitration. Each party shall appoint an arbitrator who shall together appoint a chairman of the arbitration tribunal. If the two arbitrators are unable to agree on the appointment of a chairman or one party refrains from exercising an appointment then he shall be appointed by the Chief Justice of the Oslo City Court The arbitration proceedings shall take place in Oslo and Norwegian law shall prevail. The arbitration decisions shall be reasoned. A provision referring disputes under the Statutes to arbitration may be unenforceable. Article 2.1 has been deleted with the result that disputes will be resolved through the ordinary law courts. Norwegian law will continue to apply. NOTE: The Norwegian version of the above Statutes appear at the end of this Circular

4 RULES The following changes to the Rules have been approved by the Board of Directors of Assuranceforeningen Skuld. 1. MEMBERSHIP 1.1 Application and entry An owner or a charterer of a vessel may apply for entry of the vessel in the Association If the entry is accepted, the owner or charterer shall become a member in the Association, the vessel shall become an entered vessel and the Association shall issue a Certificate of Entry. 2.3 Scope of cover The member is only covered in respect of liabilities, losses, expenses and costs incurred by the member which arise, in direct connection with the operation of the entered vessel by the member in the member's capacity as owner or charterer of the vessel, 4.6 Fixed Premiums The Association may agree fixed premiums for charterers and special categories of members. Rule 12. COLLISION AND CONTACT LIABILITY 12.5 Charterers' cover The standard insurance for charterers shall cover the members' liability for loss and damage under Rules 12.3 and 12.4 unless otherwise agreed If separately agreed, the Association can arrange additional insurance to cover a charterer member's liability for the loss of or damage to the entered vessel (excluded from the standard insurance under Rule ). The references to charterers have been removed as cover for charterers is now dealt with under separate Charterers Terms & Conditions (T&C). Rule 17. GENERAL AVERAGE CONTRIBUTIONS - CARGO 17.1 Cover The standard insurance shall cover the member's loss in respect of general average expenditure, salvage and special charges which should be paid by the cargo interests or some other party to the maritime adventure but which are not legally recoverable solely by reason of a breach of the contract of carriage. Rule 18 GENERAL AVERAGE CONTRIBUTIONS - HULL 18.1 Cover The standard insurance shall cover the member's loss in respect of general average expenditure, salvage and special charges which are not recoverable under the vessel's hull policies solely by reason of the value of the vessel being assessed for contribution to general average or salvage in excess of her insured value Limitation If, in the opinion of the Association, the entered vessel is not insured for her proper value under the hull policies, the Association's liability shall be limited to the amount to which the member's loss would have been limited had the vessel been insured for her proper value as determined by the Association in its absolute discretion

5 18.2 Exception However the standard insurance shall not cover general average expenditure, salvage and special charges which are not recoverable solely by reason of the value of the entered vessel being assessed for contribution to general average or salvage at a value in excess of the sums insured under the Hull Policies, provided that cover shall only be available under this Rule 18 in any particular case if the Association shall in its absolute discretion so determine. These changes are intended for clarification purposes only to make it clear that Rules 17 & 18 can encompass salvage charges and to emphasis that there there will be no recovery under Rule 18 to the extent that the vessel has not been insured for her proper value. Rule 24 MITIGATION/SUE & LABOUR 24.1 Cover The standard insurance shall cover the member's extraordinary costs which are necessarily, reasonably and solely incurred, on or after an incident a casualty or event liable to give rise to a claim against the Association, in avoiding or minimising any liability or loss of the member covered under these Rules. The amendment is intended to clarify that the requirement is that, whatever the type of incident, costs are only recoverable if they are incurred to avoid a claim which would be covered. In addition the words casualty or event have been substituted for incident as these are terms used elsewhere in the Rules. Rule 28 CONDITIONS PRECEDENT 28.4 Classification & certification In the event of any failure to comply with any of the above requirements, the member shall not be entitled to any recovery from the Association in respect of any event occurring during the period of non-compliance, except insofar as there has only been a failure to comply with Rule where the member is a charterer and the failure was beyond the member's control. This reference to charterers has been removed as cover for charterers is now dealt with under separate Charterers T&C. Rule 30 EXCLUSIONS Rule Consequential losses The insurance shall not cover, except under Rule 24 (mitigation costs) or Rule 27 (Defence), liabilities, losses, expenses or costs,.. which are incurred in respect of general monetary loss, consequential loss, market fluctuations, loss of market, loss of production, depreciation, loss of time, loss of opportunity, loss of profit, loss of reputation, or any similar loss, as a result of delay or the abandonment of a voyage, except where the member is legally liable to a third party for such loss and such liability is covered under these Rules Rule 5 (cargo liability) or Rule 8.1. (passengers). The exception to the exclusion will apply to all categories of claims rather than just in respect of cargo and passenger liabilities. Rule 32 LIMITATIONS 32.3 Limitation of liability - charterers Where the member is a charterer, there shall be no recovery in excess of USD 350 million for any one vessel arising out of any one event.

6 Where the member and/or any other party or parties are insured under separate charterers'entries with the Association or any other insurer which participates in the Pooling Agreement and/or the International Group Re-insurance policies, the aggregate for all claims brought against the Association and other insurers shall be limited to USD 350 million for any one event for any one entered vessel. In such circumstances, the Association's liability shall be limited to that proportion of USD 350 million that the claim bears to the aggregate of all the claims recoverable from the Association and the other insurers. This reference to charterers has been removed as cover for charterers is now dealt with under separate Charterers T&C. Rule 36 CLAIMS HANDLING 36.1 The Association shall be entitled, to handle or take over the handling of any claim or legal or other proceedings in respect of any liability, loss, cost or expense for which the member is or may be wholly or partly covered under these Rules and to conduct such proceedings in the name of the member made against the member, The purpose of this amendment is to strengthen the position of the Association when faced with a member or ex-member who refuses to co-operate in the handling of claims. APPENDIX 2 TERMS OF ENTRY FOR CO-ASSUREDS AND AFFILIATES 1.2 The cover afforded to a co-assured referred to in paragraph 1.1 shall extend only to risks, liabilities and expense arising out of operations and/or activities customarily carried on by or at the risk and responsibility of shipowners (or charterers, if the member is a charterer) and which are within the scope of cover afforded by the Rules and any special terms set out in the Certificate of Entry. This reference to charterers has been removed as cover for charterers is now dealt with under separate Charterers T&C APPENDIX 4 DEDUCTIBLES 2. Deductibles - defence cover Unless otherwise agreed, cover under Rule 27 (Defence cover) shall be subject to the following deductible per dispute: 25% of the total costs with a minimum of USD ,500. This reflects an increase in the deductible for Defence cover.

7 CHARTERERS TERMS & CONDITIONS (T&C) The following changes to the Charterers Terms & Conditions (T&C) have been approved by the Board of Directors of Assuranceforeningen Skuld. T&C 15 OBSTRUCTION Cover Liability to owners arising out of the Vessel causing an obstruction as a result of a casualty. This is to clarify that the cover to charterers is for their liability to owners. T&C 16 SALVAGE AND GENERAL AVERAGE Cover The insurance shall cover, the Assured s contribution to salvage, salvage charges, general average and expenses for which the Assured is liable in respect of the Assured s interest in bunkers or other property (other than cargo) or hire or freight, See Owners Rules 17 & 18 above. T&C 19 MITIGATION/SUE & LABOUR 19.1 Cover Extraordinary costs which are necessarily, reasonably and solely incurred by the Assured, on or after a casualty or an Event liable to give rise to a claim against Skuld, in avoiding or minimising any liability, loss, expense or cost covered under these T&Cs. See Owners Rule 24 above. T&C 23 CLAIMS HANDLING The Assured shall allow Skuld to handle or take over the handling of any claim or legal or other proceedings in respect of any liability, loss, cost or expense for which the Assured is or may be wholly or partly covered under these T&C and to conduct such proceedings in the name against the Assured or any recourse claim on behalf of theassured and authorise Skuld to appoint lawyers, experts, arbitrators, surveyors and other parties on behalf of the Assured, See Owners Rule 36.1 above. T&C 24 EXCLUSIONS Consequential losses The insurance shall not cover the Assured for any liabilities, losses, expenses or costs which arise out of or in respect Of consequential loss, general monetary loss, or loss of time, loss through price, market or currency fluctuations, loss of market or similar loss, loss of production, depreciation, loss of opportunity, loss of profit, or similar loss, except where the Assured is legally liable to a third party for such loss and such liability is covered under these T&C Clause 5 (damage to or loss of the Vessel), Clause 6 (cargo), or Clause 22 (Defence), See Owners Rule 39 above.

8 Excluded areas for war risks purposes The insurance shall not cover the Assured for any liabilities, losses, expenses or costs which arise out of or in respect of, War Risks insofar as the Vessel trades in a Listed Area for Charterers,. APPENDIX 1 DEFINITIONS Listed Area for Charterers Any area declared by Skuld to be an area of perceived enhanced risk for the purposes of the insurance provided under Parts 2 and 3 of these T&C (an updated list of listed areas is available on Skuld s web-site). [NOTE: There were no Listed Areas for Charterers Insurance provided under Parts 2 and 3 of these T&C as at 20 January Any declarations of Listed Areas for Charterers will be notified to all Assureds and appear on This change is made for clarification purposes to avoid confusion with areas which are excluded or subject to additional premium for the purposes of other insurances. APPENDIX 3 DEDUCTIBLES 2. Deductibles - Defence Cover Unless otherwise agreed, cover under Clause 22 (Defence cover) shall be subject to the following deductible per dispute: 25% of the total costs with a minimum of USD ,500. This reflects an increase in the deductible for Defence cover

9 STATUTES - NORWEGIAN VERSION 1.1 Stiftelse og formål Som medlemmer kan opptas rederier, eiere, operatører, disponerende bestyrende redere, forsikringsgivere og befraktere av skip, derunder slike flytende innretninger som styret til enhver tid måtte bestemme. 1.2 Generalforsamlingen Ordinær generalforsamling avholdes senest innen 6 måneder etter regnskapsårets utløp. Ekstraordinær generalforsamling holdes når styret eller representantskapet finner det nødvendig, eller når minst 10 medlemmer med til sammen minst stemmer forlanger det Ethvert medlem skal være berettiget til å avgi det antall stemmer som ut fra samlet innmeldt bruttotonnasje og Estimated Total Call beregnes på følgende måte: Og a) Samlet innmeldt brutto tonnasje Samlet innmeldt brutto tonnasje Antall stemmer Opp til 20, ,001 til 50, ,001 til 100, ,001 til 200, ,001 til 400, ,001 til 600, ,001 til 800, ,001 til 1,000, ,000,001 til 1,500, ,500,001 til 2,000, For hver 500,000 eller påbegynte overskytende 2,000,000 Ytterligere én stemme b) Estimated Total Call For hver påbegynte USD én stemme Samlet brutto tonnasje beregnes på grunnlag av registrert innmeldt tonnasje pr. den dag innkallelsen til generalforsamlingen sendes medlemmene. Estimated Total Call er det beløp Foreningen fastsetter etter Rule 4.2 for det forsikringsåret hvor generalforsamlingen finner sted Medlemmer har ikke stemmerett i forbindelse med innmeldinger (a) for en periode kortere enn ett år, (b) som ikke er undergitt tilskuddsplikt for det forsikringsåret hvor generalforsamlingen finner sted, (c) av skip som ikke er inntegnet i Foreningen på dagen for generalforsamlingen, eller (d) som har utestående premie på dagen for generalforsamlingen Ethvert medlem kan la seg representere ved fullmektig i generalforsamlingen. Som fullmektig kan kun velges medlemmer med stemmerett etter Ingen kan avgi stemme på egne eller andres vegne med til sammen mer enn 1/10 av de samlede tilstedeværende stemmer I forbindelse med at det innkalles til generalforsamling, kan det kreves anmodes om at møtedeltakerne minst to dager forut for generalforsamlingen skriftlig forhåndsanmelder til foreningen på hvis vegne de møter. Skriftlig melding om dette må være innkommet innen kontortidens utløp to dager forut for generalforsamlingen.

10 1.12 Styret som revisjonsutvalg Revisjonsutvalget skal i overensstemmelse med forskrift nr. 18 av 11. januar 2010 bestå av det samlede styret Styret skal samlet ha den kompetanse som er nødvendig for å ivareta revisjonsutvalgets oppgaver. Minst ett av medlemmene i revisjonsutvalget skal være uavhengig av Foreningen og ha kvalifikasjoner innen regnskap eller revisjon Styret som revisjonsutvalg skal utføre de oppgaver som fastsettes i Forsikringsvirksomhetsloven TVISTER 2.1 Voldgift og lovvalg Disse lover (vedtekter) er underlagt norsk rett dog slik at forsikrings-avtaleloven av 1989 ikke får anvendelse Hvis ikke annet er avtalt, skal tvister mellom Foreningen og et medlem avgjøres ved voldgift. Det samme gjelder behandlingen av tvister mellom Foreningen og et tidligere medlem, og mellom Foreningen og en som er eller har vært forsikret eller medforsikret under Foreningens polise uten å være eller ha vært medlem Hver av partene oppnevner en voldgiftsmann, og disse oppnevner i fellesskap voldgiftsrettens formann. Hvis de ikke blir enige om oppnevnelsen, eller en part unnlater å foreta oppnevnelse, skal Justitiarius ved Oslo Tingrett foreta oppnevnelsen Forhandlingene ved voldgiftsretten skal finne sted i Oslo og norsk rett skal legges til grunn. Voldgiftsavgjørelser skal grunngis Yours faithfully Assuranceforeningen Skuld (Gjensidig) Douglas Jacobsohn President & Chief Executive Officer