Alterations to the Rules of the Association To the Members As described in our circular No.21-009 dated 17 November 2021 and circular No.21-014 dated 19 January 2022, the following alterations to the Rules of the Association (the "Rules") will become effective from 12 noon GMT on 20 February 2022 for the 2022 policy year.  There will also be an alteration to the Special Clause. The amendments are explained below, and extracts of the relevant provisions are attached hereto.     Alterations to the Rules   Rule 1.10 (Conclusion of Insurance Contract) To stipulate that the Association is entitled to refuse an application under certain conditions. The reasons for refusal of an application include: that the person desiring to insure his ship has links to a terrorist organisation or drug cartel; or, that the person desiring to insure his ship is involved in any way in violations of sanctions, embargoes or any other restrictions imposed by any regulatory authorities and / or government bodies of Japan, the United States, European Union, or the United Kingdom; or, that, taking relevant facts, such as the condition of the ship and the management systems, into consideration, the person desiring to insure his ship fails to prove that the ship, which he wishes to enter in the Association, is within the Association’s risk tolerance.   Rule 8.3(3) (Default in Payment of Calls and Premiums) To stipulate the allocation of payments made which do not wholly extinguish sums of principal, interest, and expenses due from the Member   Rule 10 introductory clause and (4) (Continuation of Insurance Contract) To stipulate that the Association may discontinue the insurance contract in the ensuing policy year if the Association and a Member cannot agree on the insurance conditions, and also to make clear such reasons as the Association may deem it justifiable to discontinue the insurance contract. The reasons for discontinuation of insurance contract include: that