CLASS 7, THE WAR RISKS CLASS ____________________ NOTICE IS HEREBY GIVEN that a SEPARATE MEETING of the MEMBERS OF CLASS 7, THE WAR RISKS CLASS, of the Association will be held at the REGISTERED OFFICE of the Association, 50 LEMAN STREET, LONDON, E1 8HQ at 12.10 p.m. on WEDNESDAY, 25th JANUARY 2006, or as soon thereafter as the meeting of Class 5 called for that day is finished, for the purpose of altering and adding to the Rules. The following alterations and additions together with such further alterations and additions, if any, as may be proposed will be submitted for adoption with or without modification and with effect from noon G.M.T. on the 20th day of February 2006. [New wording is in bold. The explanatory notes in italics will not appear in the actual Rules.] 4.E GENERAL TERMS APPLICABLE TO EACH AND EVERY RISK INSURED BY THIS CLASS OF THE ASSOCIATION. 4.E.1 The breach of any one of the warranties contained in Rule 4.E.2 shall suspend the insurance given by these Rules during the continuance of such breach. PROVIDED ALWAYS that: the breach of any one or more of these warranties shall not operate to suspend such insurance if the Insured Owner shall prove that such breach happened without the fault or privity of the Insured Owner or the managers of the Entered Ship, or was committed in order to avoid loss by the risks hereby insured. 4.E.2 Warranties 4.E.2.1 Where a ship is entered in this Class of the Association on the basis that she is registered in a particular country and sails under a particular flag, and that she is entitled to be so registered and to remain so registered in that country and to sail under that flag, she shall remain continually so registered in that country and continually sail under that flag unless otherwise agreed by the Managers in writing. 4.E.2.2 The Entered Ship shall, so far as possible, comply with all orders given by or on behalf of Her Majesty’s Government of the United Kingdom and, subject to those orders, comply with all orders, prohibitions and directions made under Rule 18, irrespective of whether such orders, prohibitions and directions were made before or after the date of entry of the Entered Ship. 4.E.2.3 The Insured Owner concerned shall ensure compliance with all of the statutory requirements of the state of the Ship’s flag relating to the International Ship & Port Facility Security Code (‘the ISPS Code’) and ensure at all times the maintenance of the validity of the relevant statutory certificates as are required - 2 to be issued by or on behalf of the state of the Ship’s flag. PROVIDED ALWAYS that the Committee may authorise payment of a claim, either in whole or in part, which would otherwise be excluded by reason of a breach of this Warranty, if in all the circumstances the Committee shall in its sole discretion determine. [Explanation: This proposed change introduces a requirement for War Risks Members to ensure compliance with the statutory requirements of the Flag State, in respect of the ISPS Code.] By Order of the Committee, A. BILBROUGH & CO. LTD. (Managers) 21 October 2005 7:079