American Club Circular No. 01/14 1 JANUARY 06, 2014 CIRCULAR NO. 01/14 TO MEMBERS OF THE ASSOCIATION Dear Member: CHANGES TO THE RULES OF THE ASSOCIATION FOR THE 2014 POLICY YEAR Please note that your Board of Directors has approved the following changes to the Club’s Rules to take effect from February 20, 2014. They derive from a continuing review of the language of the existing Rules and a desire to maintain good housekeeping in the interests of the clarity and efficacy of the terms on which Members are insured by the Club. They also reflect changes to the wording of the International Group of P&I Clubs’ Pooling Agreement for the forthcoming year, as specified where relevant below. The changes are set out in the order in which current Rules appear in the Rule Book. Class I – Protection and Indemnity Insurance Interpretation (Rule 1, Section 2) The International Group has agreed to an amendment to the definition of “eligible vessels” under Clause 1.1(t) as set out in Appendix II to the Pooling Agreement for 2014. In order to reflect this change, the relevant part of Class I, Rule 1, Section 2 will be amended to read as follows, the additional wording being underlined: Vessel Any ship, boat, hydrofoil, hovercraft or other description of vessel (including a lighter, barge or similar vessel howsoever propelled but excluding (a) a unit or vessel constructed or adapted for the purpose of carrying out drilling operations in connection with oil or gas exploration or production and (b) a fixed platform or fixed rig) used or intended to be used for any purpose whatsoever in navigation or otherwise on, under, over, or in water or any part of such ship, boat, hydrofoil, hovercraft or other description of vessel or any proportion of the tonnage thereof or any share therein. General Insurance Provisions (Class I, Rule 1, Section 4) An addition to wording of Section 4.17 will be incorporated as follows, the purpose being to make promptness of notice subject to the Managers’ discretion in the same way as other Member obligations set out in the sub-section. The additional wording is underlined: Members’ Obligations in Regard to Claims 17 Any happening, occurrence, event or matter (including, but not limited to, any legal or arbitration proceedings commenced against the Member) which may be liable to cause the American Club Circular No. 01/14 2 Member to incur loss, damage, liabilities, costs or expenses for which he may be insured by the Association shall be notified promptly to the Managers by the Member on it being known by him. In so far as there may be any difference of opinion between the Member and the Managers as to whether any happening, occurrence, event or matter is or was such as might be liable to cause the Member to incur loss, damage, liabilities, costs or expenses, or as to whether the Member knew or ought to have known of such happening, occurrence, event, or matter as aforesaid, or as to whether such happening, occurrence, event or matter was notified promptly to the Managers by the Member, the determination of the Managers shall be final. A Member shall take and continue to take all such steps as may be reasonable for the purpose of averting or minimizing any expense or liability in respect whereof he may be insured by the Association. In addition, in order fully to take account of the provisions of Maritime Labor Convention (MLC) 2006, the following amendments to Section 4.29 will also take effect, as underlined below: Other Provisi