12 August 2010 TO ALL WAR RISKS MEMBERS Dear Sirs Additional Premium Areas In accordance with the Association’s Rule 19.3 (Class 7 War Risks), the following amendment to the areas listed in the Association’s Circular dated 15 June 2010 (No. 7:097) will become effective from 00:01 hours GMT on 24 August 2010. The following area is added: Africa Eritrea, but only south of 15ºN. The following area is amended: Middle East Southern Red Sea added to Gulf of Aden. The Additional Premium Areas in force at 00:01 hours GMT on 24 August 2010 will therefore read as per the schedule overleaf. Iran Sanctions Members should also be aware that legislation has been introduced or is expected shortly as a consequence of which the manner in which ships are traded, involving Iran and commitments to Iranian entities, could lead to the Association becoming subject to sanctions that could threaten its continuing operations. Also reinsurers of the Class have given notice that they will shortly be excluding cover in circumstances where by doing otherwise, they also would become subject to the sanctions. Accordingly Members should expect, imminently, notice from the Association of cancellation of their insurances under Rule 4.D.8.1 of this Class 7 and reinstatement of the insurances on terms that will exclude cover in circumstances that could lead to the Association becoming subject to the sanctions and/or suffer shortfalls in claims recoveries from reinsurers. Yours faithfully A BILBROUGH & CO LTD (MANAGERS) 7:098 - 2 The Additional Premium Areas in force at 00:01 hours GMT on 24 August 2010: Africa Djibouti Eritrea, but only south of 15ºN Ivory Coast Nigeria including Terminals Somalia, including waters out to 250 nautical miles from the eastern Somalia coast south of latitude 10ºN Indian Ocean, the area beyond the eastern Somalia and Gulf of Aden areas out to 65ºE, south of latitude 15ºN with the southern boundary being 11ºS but at 49ºE, the boundary shall extend due south then east along the latitude 12ºS, but excluding the coastal waters of Mozambique, Kenya and Tanzania up to 12 nautical miles offshore. Eastern Europe Georgia Indonesia/Malaysia Balikpapan (SE Borneo) Borneo, north east coast of, between and including Kudat and Tarakan Jakarta Sumatera (Sumatra), but only the north eastern coast between 5º40’N and 0º48’N Middle East Iran Iraq Israel Lebanon Saudi Arabia Yemen Southern Red Sea/Gulf of Aden, the area enclosed by the following boundaries: (a) On the north-west, Eritrea and the Red Sea, both south of Latitude 15ºN (b) on the north, latitude 15ºN (c) on the east, longitude 57ºE (d) and on the south, latitude 10ºN. Philippines Mindanao, southern coast of, between and including Polloc Harbour and General Santos Sulu Archipelago including Jolo [From Tanjung Bidadari (5º49’·6N, 118º21’·0E) along the east coat of Sabah to Tanjung Bagahak Light (4º56’·5N, 118º38’·3E); thence south-eastwards to Pulau Mataking Light (4º34’·6N, 118º57’·0E); thence southwards to position 3º32’·0N, 118º57’·0E; thence northeastwards to position 5º50’·0N, 122º31’·0E; thence northwards to position 7º06’·6N, 122º31’·0E; thence westwards to Batorampon Point Light (7º06’·6N, 121º53’·8E); thence west-south-westwards to Tanjung Bidadari.] South America Venezuela Specific ports, places and coasts should be understood to include harbours, offshore installations, terminals and adjacent waters unless otherwise agreed.