14 January 2015 TO ALL CLASS 5 AND 8 MEMBERS Dear Sirs PROPOSED RULE CHANGES Please find attached copies of Notices of forthcoming meetings of the Class 5 and 8 Members of the Association, to be held at the registered office of the Association, 50 Leman Street, London E1 8HQ, on Wednesday, 28 th January 2015, for the purpose of amending the Rules of the classes. It will be noted that the proposed changes for each class are split into two separate resolutions:Resolution One includes the Rule changes necessary to give effect to a proposed reorganisation of the Association, in order to maintain the optimal corporate structure from a regulatory and tax perspective and in preparation for the implementation of the Solvency II Directive. The effect of these Rule changes and to the Rules and constitutional documents of the Association’s parallel mutual, the London Steam-Ship Owners’ Mutual Insurance Association (Bermuda) Ltd, will be to change the status of the Bermuda parallel to become a subsidiary of the Association, with effect from the start of the 2015/16 Policy Year. Further details of this proposed change in structure are given in a short “Frequently Asked Questions” document also attached to this circular. Resolution Two includes other more routine Rule changes, each explained in the relevant Notices, which are again proposed to take effect from the start of the 2015/16 Policy Year. Copies of all the above documents are also available on the Association’s website: www.londonpandi.com . Yours faithfully A BILBROUGH & CO LTD (MANAGERS) 5:506 8:103 - 2 CLASS 5, THE PROTECTING AND INDEMNITY CLASS ____________________ NOTICE IS HEREBY GIVEN that a SEPARATE MEETING of the MEMBERS OF CLASS 5, THE PROTECTING AND INDEMNITY CLASS, of The London Steam-Ship Owners’ Mutual Insurance Association Ltd (“the Association”) will be held at the REGISTERED OFFICE of the Association, 50 LEMAN STREET, LONDON, E1 8HQ at 12 noon on WEDNESDAY, 28th JANUARY 2015, or as soon thereafter as the meeting of the Committee called for that day is finished, for the purpose of amending the Rules. The following RESOLUTIONS amending the Rules of the Class, together with such further amendments, if any, as may be proposed at the meeting, will be considered, and if thought fit, passed as ORDINARY RESOLUTIONS of the Class to take effect from noon G.M.T. on the 20th day of February 2015. [New wording is in bold. The explanatory notes in italics will not appear in the actual Rules.] RESOLUTION ONE THAT, conditional on: (i) Resolution One being proposed at the meeting of the members of Class 8 (The Freight, Demurrage and Defence) of the Association to be held on Wednesday 28 th January 2015 (or any adjournment thereof) amending the Class 8 (The Freight, Demurrage and Defence) Rules being approved; and (ii) the resolutions being proposed at the Special General Meeting of The London Steam-Ship Owners’ Mutual Insurance Association (Bermuda) Limited (“LSSO (Bermuda)”) to be held on or around 12 February 2015 (or any adjournment thereof) being approved; and (iii) the resolutions being proposed at the meeting of the members of Reinsurance Class I of LSSO (Bermuda) to be held on or around 12 February 2015 (or any adjournment thereof) being approved; and (iv) the resolutions being proposed at the meeting of the members of Reinsurance Class II of LSSO (Bermuda) to be held on or around 12 February 2015 (or any adjournment thereof) being approved, the following amendments to the Class 5 (Th