Loading...
FERRY SERVICES AGREEMENTFERRY SERVICES AGREEMENT THIS CONTRACT, entered into this / day o eberk, , 2016, by and between the CITY OF CLEARWATER, a Florida municipal corporation, hereinafter referred to as 'City," P.O. Box 4748, Clearwater, Florida 33758 and CLEARWATER FERRY SERVICES, INC., a Florida corporation, hereinafter referred to as "Ferry,° 415 Laughing Gull Lane, Palm Harbor, FL 34683. WHEREAS, traffic congestion on State Road 60, including the Memorial Causeway Bridge to and on Clearwater Beach during the months of March and April is greatly increased due to Spring Break and Spring Training; and WHEREAS, it is in the public interest to help prevent traffic gridlock during peak periods, reduce the law enforcement man hours involved in traffic control and increase awareness of the downtown Cleveland Street District, Coachman Park and Downtown Marina; and WHEREAS, the City is interested in utilizing a multimodal solution to the problem of traffic congestion and limited parking on Clearwater Beach; and WHEREAS, approximately 7000 employees of beach businesses drive over the Memorial Causeway to work; and WHEREAS, parking is often difficult to find and prohlbitively expensive for these employees; and WHEREAS, 54% of employees and 65% of residents indicated in a survey that they would use ferry services to get to Clearwater Beach; and WHEREAS, Clearwater Ferry Services, Inc. agrees to provide elte e transportation to and from Clearwater Beach as set forth below, NOW THEREFORE, in consideration of the promises stud herein, the C. and Ferry rrrutualiy agree as follows: 1. SCOPE OF PROJECT. Ferry agrees to provide ferry service between the Downtown Marina and the Clearwater Municipal Marina seven days a week from 10 am to 8 pm between March 1, 2016 and April 30, 2016. 2. TIME OF PERFORMANCE. This Contract shall commence on March 1, 2016 and terminate on April 30, 2016. 3. COMPENSATION. The City will pay Ferry a $1.00 reimbursement for each one way ticket sold for ferry service between downtown Clearwater and the Clearwater Municipal Marina or downtown Clearwater and the Beach Recreation Center Dock, based upon the Ferry meeting the route schedule attached as Exhibit A, not to exceed $79,300. The City may, from time to time, require changes in the scope of the project to be performed hereunder. Such changes, including any increase or decrease in the aunt of Ferry's compensation and changes in the temps of this Contract which are mutually agreed upon by and between City and Ferry shall be effective when incorporated in written amendment to this Contract. 4. METHOD OF PAYMENT. [G M16- 92'16 -0 11 8011] Page 2 of 6 Ferry's invoices shall be submitted to the City Engineer for approval for payment on a weekly basis. Ferry will provide City a spreadsheet of its Rider Log data during the hours of 10am and 8pm daily in support of the invoice. The City agrees to pay after approval under the terms of the Florida Prompt Payment Act F.S. 218.70. 5. NOTICES AND CHANGES OF ADDRESS. Any notice required or permitted to be given by the provisions of this Contract shall be conclusively deemed to have been received by a party hereto on the date it is hand delivered to such party at the address indicated below or at such other address as such party shall specify to the other party in writing), or if sent by registered or certified mail (postage prepaid) on the fifth (5th) business day after the day on which such notice is mailed and properly addressed. 1) If to Corporation, addressed to: Patricia Rodriguez 415 Laughing Gull Lane Palm Harbor, FL 34683 If to City, addressed to: City Manager P. O. Box 4748 Clearwater, FL 33758 -4748 With copies to: City Attorney P. 0. Box 4748 Clearwater, FL 33758 -4748 6. TERMINATION OF CONTRACT. The City at its sole discretion may terminate this Contract by giving Ferry a ten (10) day written notice of its election to do so and by specifying the effective date of such termination. Ferry shad be paid for its services through the ES AA1 -92' 6- 053!1;8068011 j Page 3 of 6 effective date of such termination. Further, if Ferry shall fail to fulfill any of its obligations hereunder, this Contract shall be in default„ the City may terminate the Contract, and Ferry shall be paki only for work completed. 7. NON - DISCRIMINATION. Notwithstanding any other provision of reement, the Corporation for itself, agents and representatives, as part of the consideration for this agreement does covenant and agree that a) No Exclusion from Use. No person shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination in the operation of this program on the grounds of race, color, religion, sex, handicap, age or national origin. b) No Exclusion from Hire. In the management, operation, or provision of the program activities authorized and enabled by this agreement, no person shall be excluded from participation in or denied the benefits of or otherwise be subject to discrimination on the grounds of, or otherwise be subjected to discrimination on the grounds of race, color, religion, sex, handicap, age, or national origin, except that age may be taken into consideration to the extent that the age of an employee is a bona fide occupational qualification, as permitted by law. c) Breach of Non - discrimination Covenants. In the event of conclusive evidence of a breach of any of the above non - discrimination covenants, the City shall have the right to terminate this agreement immediately. 8. INTERESTS OF PARTIES. Ferry covenants that its officers, employees and shareholders have no interest and shall not acquire any interest, direct or indirect, which would conflict in any [GM16- 9216-063118 j Page 4 of 6 manner or degree with the performance and/or provision of services required under the terms and conditions of this Contract. 9 LIABILITY AND INDEMNIFICATION. The Corporation shall act as an independent contractor and agrees to assume all risks of providing the program activities and services herein agreed and all liability therefore, and shall defend, indemnify, and hold harmless the City, its officers, agents, and employees from and against any and all claims of loss, liability and damages of whatever nature, to persons and property, including, without limiting the generality of the foregoing, death of any person and loss of the use of any property, except claims arising from the negligence of the City or City's agents or employees. This includes, but is not limited to, matters arising out of or claimed to have been caused by or in any manner related to the Corporation's activities or those of any approved or unapproved invitee, contractor, subcontractor, or other person approved, authorized, or permitted by the Corporation whether or not based on negligence. Nothing herein shall be cons. trued as consent by the City to be sued by third parties, or as a waiver or modification of the provisions or limits of Section 768.28, Florida Statutes or the Doctrine of Sovereign Immunity. 10. INSURANCE. Ferry agrees to maintain insurance on the vessels as described in the policies attached hereto as Exhibit "B" and agrees to name City as an additional insured party on said insurance policies. 11. CONFORMANCE WITH LAWS. [(3M16- 9218-0 11 Page 5 off` 6 Ferry agrees to comply with all applicable federal, state and local laws during the life of this Contract 12. ATTORNEY FEES. In tt a event that either party seeks to enforce this Contract through attorneys at law, then the parties agree that each patty shall bear its own attorney fees and costs. 13. GOVERNING LAW AND VENUE. The laws of the State of Florida shall govern this Contract, and any action brought by either party shall lie in Pinellas County, Florida.. IN WITNESS WHEREOF, the parties hereto have executed as of the date set forth above. Approved as to form: Pamela K Akin City Attorney iGMt16 921 11 CITY OF CLEARWATER, FLORIDA By: .JL L4. ! 0aJ William B. Horne II City Manager Attest Rosemarie Call City Clerk CLEAR ATER FERRY By: Patricia R President Attest: Page 6 of 6 2016 Route Schedule - Effective March 1st 2016 2016 Season: Regular Schedule (Monday - Thursday) Downtown Departure Times Going To 6:00 AM Marina, Downtown 6:30 AM Marina, North Beach 7:30 AM North Beach, Downtown 8:00 AM North Beach, Downtown 8:30 AM North Beach, Marina 9:30 AM North Beach, Marina 10:30 AM North Beach, Marina 11:30 AM North Beach, Marina 12:30 PM North Beach, Marina 1:30 PM North Beach, Marina 2:30 PM North Beach, Marina 3:30 PM North Beach, Marina 4:30 PM North Beach, Marina 5:30 PM North Beach, Downtown 6:00 PM North Beach, Downtown 6:30 PM Marina, North Beach 7:30 PM Marina, North Beach 8:30 PM Marina, North Beach 9:30 PM Marina, North Beach 10:30 PM North Beach, Marina 11:30 PM North Beach, Marina Clearwater Beach Marini Departure Times 70 6:15 AM Downtown 6:45 AM North Beach, Marina 7:15 AM Downtown 9:00 AM Downtown 10:00 AM Downtown 11:00 AM Downtown 12:00 PM Downtown 1:00 PM Downtown 2:00 PM Downtown 3:00 PM Downtown 4:00 PM Downtown 5:15 PM Downtown 6:45 PM North Beach, Marina 7:15 PM Downtown 7:45 PM North Beach, Marina 8:15 PM Downtown 8:45 PM North Beach, Marina 9:15 PM Downtown 9:45 PM North Beach, Marina 10:15 PM Downtown 11:15 PM Downtown 12:15 AM Downtown 2016 Season: High Volume Schedule (Friday - Sunday) Downtown Departure Times Going To 6:00 AM Marina 6:30 AM Marina 7:30 AM North Beach 8:00 AM North Beach 8:30 AM North Beach 9:30 AM North Beach 10:30 AM North Beach 11:30 AM North Beach 12:30 PM North Beach 1:00 PM Marina, North Beach 1:30 PM North Beach 2:00 PM Marina, North Beach 2:30 PM North Beach 3:00 PM Marina, North Beach 3:30 PM North Beach 4:00 PM Marina, North Beach 4:30 PM North Beach 5:00 PM Marina, North Beach 5:30 PM North Beach 6:30 PM Marina, North Beach 7:30 PM Marina, North Beach 8:30 PM Marina, North Beach 9:30 PM Marina, North Beach 10:30 PM North Beach 11:30 PM North Beach Clearwater Beach Marina Departure Times Going To 6:15 AM Downtown 6:45 AM North, Marina 7:15 AM Downtown 9:00 AM Downtown 10:00 AM Downtown 11:00 AM Downtown 12:00 PM Downtown 1:00 PM Downtown 1:15 PM North, Downtown 2:00 PM Downtown 2 :15 PM North, Downtown 3:00 PM Downtown 3:15 PM North, Downtown 4:00 PM Downtown 5:15 PM Downtown 5:15 PM (2) North, Downtown 6:00 PM North, Downtown 6:45 PM North, Marina 7:15 PM Downtown 7:45 PM North, Marina 8:15 PM Downtown 8:45 PM North, Marina 9:15 PM Downtown 9:45 PM North, Marina 10:15 PM Downtown 11:15 PM Downtown Office: 727 - 755 -0297 www.ClearwaterFerry.com East Bay Esplanade /North Beach Departure Times Gobi To 7:00 AM Marina, Downtown 7:45 AM Downtown 8:15 AM Downtown 8:45 AM Marina, Downtown 9:45 AM Marina, Downtown 10:45 AM Marina, Downtown 11:45 AM Marina, Downtown 12:45 PM Marina, Downtown 1:45 PM Marina, Downtown 2:45 PM Marina, Downtown 3:45 PM Marina, Downtown 4:45 PM Marina, Downtown 5:45 PM Downtown 6:15 PM Downtown 7:00 PM Marina, Downtown 8:00 PM Marina, Downtown 9:00 PM Marina, Downtown 10:00 PM Marina, Downtown 10:45 PM Marina, Downtown 11:45 PM Marina, Downtown East Bay Esplanade /North Beach Departure Times Going To 7:00 AM Marina, Downtown 7:45 AM Downtown 8:15 AM Downtown 8:45 AM Marina, Downtown 9:45 AM Marina, Downtown 10:45 AM Marina, Downtown 11:45 AM Marina, Downtown 12:30 PM Downtown 12:45 PM Marina, Downtown 1:30 PM Downtown 1:45 PM Marina, Downtown 2:30 PM Downtown 2:45 PM Marina, Downtown 3:30 PM Downtown 3:45 PM Marina, Downtown 4:30 PM Downtown 4:45 PM Marina, Downtown 5:30 PM Downtown 5:45 PM Downtown 6:15 PM Downtown 7:00 PM Marina, Downtown 8:00 PM Marina, Downtown 9:00 PM Marina, Downtown 10:00 PM Marina, Downtown 10:45 PM Marina, Downtown 11:45 PM Marina, Downtown *We may choose to operate our High Volume Schedule during the week based on ridership demand. You will find the most update schedule at www.ClearwaterFerry.com. Exhibit A Sunderland Marine Policy of Insurance Assured: Clearwater Ferry Services, Inc. Address: 415 Laughing Gull Lane Palm Harbor, FL 34683 Vessel: 2005 40' F /G /G C/V "Maddie's Crossing" Policy No.: MY0864 THIS INSURANCE IS ISSUED PURSUANT TO THE FLORIDA SURPLUS LINES LAW. PERSONS INSURED BY SURPLUS LINES CARRIERS DO NOT HAVE THE PROTECTION OF THE FLORIDA INSURANCE GUARANTY ACT TO THE EXTENT OF ANY RIGHT OF RECOVERY FOR THE OBLIGATION OF AN INSOLVENT UNLICENSED INSURER. SURPLUS LINES INSURERS' POLICY RATES AND FORMS ARE NOT APPROVED BY ANY FLORIDA REGULATORY AGENCY Surplus Lines Agent: Brian A. Raby License No.: A213865 Address: 5 Windsormere Way; Ste 100 Oviedo, Florida 32765 Producing Agent: Casey Insurance Group, Inc. Address: 151 North Nob Hill Rd. #269 Plantation, FL 33324 To Be Reported: 1e Qtr 2015 Premium: $3,790.00 Tax: EXEMPT Florida Policy Fee: $25.00 FSLSO Service Fee: $6.68 Countersigned By: t c C(;) Florida Surplus Lines Agent 5 Windsormere Way 1 Suite 100 1 Oviedo, Florida 32765 Toll Free: 800.782.0402 1 Tel: 407.359.6363 1 Fax: 407.359.3535 Web: www.muins.com 1 Email: info(amuins.com Exhibit B Sunderland Marine Policy of Insurance In consideration of the premium as hereinafter stated, the company named herein do hereby insure the assured named herein, for the amounts and proportions. All subject to the terms and conditions of the forms and endorsements attached herein: Policy Number: Effective Date: Expiring Date: Assured: Address: For Account of: Loss, If Any, Payable To: Vessel Description: MY0864 March 13th 2015, Noon, L.S.T. March 13th 2016, Noon, L.S.T. Clearwater Ferry Services, Inc. 415 Laughing Gull Lane Palm Harbor, FL 34683 Themselves Named Assured 2005 40' F /G /G C/V "Maddie's Crossing" In witness whereof, the companies hereinafter named have caused this policy to be issued and signed by a duly authorized officer, attorney, or agent at Marine Underwriters. Brent McIver - Manager Marine Underwriters Date of Issuance: March 29, 2015 5 Windsormere Way I Suite 100 I Oviedo, Florida 32765 Toll Free: 800.782.0402 ( Tel: 407.359.6363 I Fax: 407.359.3535 Web: www.muins.com I Email: infoPmuins.com Clearwater Ferry Services, Inc. Policy No. MY0864 COVERAGES Hull & Machinery ACV Engine Clause AMOUNT INSURED DEDUCTIBLE(S) SUNDERLAND MARINE INSURANCE CO. LTD. $70,000.00 $1,400.00 Protection & Indemnity (P & I) `500,000.00 A.O.A. /OCC C.S.L. $500.00 Medical Payments $10,000.00 N/A Personal Effects 51,000.00 $100.00 Sub Total Florida. Policy Fee Florida Surplus Lines Fees *CANCELLING RETURNS ONLY* Annual Premium: 5 Windsormere Way 1 Suite 100 1 Oviedo, Florida 32765 Toll Free: 800.782.0402 1 Tel: 407.359.6363 1 Fax: 407.359.3535 Web: www.muins.com 1 Email: info @muins.com TERMS AND CONDITIONS Description of Coverages Provided: Hull & Machinery subject American Institute Hull Clauses (June 2, 1977), Charter Vessel Clauses (H &M), American Institute S.R. & C.C. Endorsement, and Personal Effects Endorsement. Protection & Indemnity subject to SP -23 Form, Charter Vessel Clauses (P &I), American Institute Pollution Exclusion and Buy Back Endorsement A, Commercial Towing and Assistance Endorsement, and Medical Payment Endorsement. Coverage to include third party liability, two (2) fulltime crewmen, and a maximum of forty (40) passengers. Subject to Parent Company Guarantee, Charter Vessel Clauses- General Terms and Conditions, Sanctions Limitation and Exclusion Endorsement, and Exclusion Certified Acts of Terrorism. Annual premium payable in bi- annual installments per the attached premium payment schedule. NAVIGATION LIMITS: Warranted confined to the inland and coastal navigable waters of Florida; not to exceed five (5) miles offshore. Excluding absolutely the territorial waters of Cuba. Sunderland Marine 5 Windsormere Way 1 Suite 100 1 Oviedo, Florida 32765 Toll Free: 800.782.0402 1 Tel: 407.359.6363 1 Fax: 407.359.3535 Web: www.muins.com 1 Email: info @muins.com Coverage 3/13/2015 9/13/2015 To Clearwater Ferry Services, Inc. Premium Payment Schedule Vessel "Maddie's Crossing" 1st Installment Hull & Machinery $612.50 Protection & Indem. $1,270.00 Medical Payments $12.50 Policy Fee $25.00 FSLSO Fee $6.68 2nd Installment $612.50 $1,270.00 $12.50 Total Premium Due: $1,926.68 $1,895.00 ATTACHED TO AND FORMING A PART OF POLICY NO. MY0864 OF SUNDERLAND MARINE INSURANCE COMPANY LIMITED ISSUED TO: Clearwater Ferry Services, Inc. AMERICAN INSTITUTE HULL CLAUSES (June 2, 1977) To be attached to and form a part of Policy No. SEE DECLARATION PAGE of the SUNDERLAND MARINE INSURANCE COMPANY LIMITED. The terms and conditions of the following clauses are to be regarded as substituted for those of the policy form to which they are attached, the latter being hereby waived, except provisions required by law to be inserted in the Policy. All captions are inserted only for purpose of reference and shall not be used to interpret the clauses to which they apply. ASSURED This Policy insures SEE DECLARATION PAGE hereinafter referred to as the Assured. If claim is made under this Policy by anyone other than the owner of the Vessel, such person shall not be entitled to recover to a greater extent than would the owner, had claim been made by the owner as an Assured named in this policy. Underwriters waive any right of subrogation against affiliated, subsidiary or interrelated companies of the Assured, provided that such waiver shall not apply in the event of a collision between the Vessel and any vessel owned, demise chartered or otherwise controlled by any of the aforesaid companies, or with respect to any loss, damage or expense against which such companies are insured. LOSS PAYEE Loss, if any, payable to NAMED ASSURED or order. Provided, however, Underwriters shall pay claims to others as set forth in the Collision Liability clause and may make direct payment to persons providing security for the release of the Vessel in Salvage cases. VESSEL The subject matter of this insurance Is the Vessel called the SEE DECLARATION PAGE or by whatsoever name or names the said Vessel shall be called, which for the purposes of this insurance shall consist of and be limited to her hull, launches, lifeboats, rafts, furniture, bunkers, stores, supplies, tackle, fittings, equipment, apparatus, machinery, boilers, refrigerating machinery, insulation, motor generators and other electrical machinery. In the event any equipment or apparatus not owned by the Assured is installed for use on board the Vessel and the Assured has assumed responsibility therefor, it shall also be considered part of the subject matter and the aggregate value thereof shall be included in the Agreed Value. Notwithstanding the foregoing, cargo containers, barges and lighters shall not be considered a part of the subject matter of this insurance. DURATION OF RISK From the To the SEE DECLARATION PAGE SEE DECLARATION PAGE Should the Vessel at the expiration of this Policy be at sea, or in distress, or at a port of refuge or of call, she shall, provided previous notice be given to the Underwriters, be held covered at a pro rata monthly premium to her port of destination. In the event of payment by the Underwriters for Total Loss of the Vessel this Policy shall thereupon automatically terminate. AGREED VALUE The vessel, for so much as concerns the Assured, by agreement between the Assured and the Underwriters in this Policy, is and shall be valued at 1 AMOUNT INSURED HEREUNDER SEE DECLARATION PAGE DEDUCTIBLE Notwithstanding anything in this Policy to the contrary, there shall be deducted from the aggregate of all claims (including claims under the Sue and labor clause and claims under the Collision Liability clause, arising out of each separate accident, the sum of $SEE DECLARATION PAGE Unless the accident results in a Total Loss of the Vessel in which case this clause shall not apply PREMIUM The underwriters to be paid in consideration of this $SEE DECLARATION PAGE being at the rate of As Agreed per cent, which premium shall be due on attachment. If the Vessel is insured under this Policy for a period of less than one year at the pro rata of the annual rate, full premium shall be considered earned and immediately due and payable in the event of Total Loss and/or Constructive Total Loss of the Vessel. NON - PAYMENT OF PREMIUM In event of non - payment of premium 30 days after attachment or of any additional premium when due, this Policy may be cancelled by the Underwriters upon 10 days written or telegraphic notice sent to the Assured at his last known address or in the care of the broker who negotiated this policy. Such proportion of the premium, however, as shall have been earned up to the time of cancellation shall be payable. In the event of Total Loss and/or Constructive Total Loss of the Vessel occurring prior to any cancellation or termination of this Policy full premium shall be considered earned. ADVENTURE Beginning the adventure upon the Vessel, as above, and so shall continue and endure during the period aforesaid, as employment may offer, in port or at sea, in docks and graving docks, and on ways, gridirons and pontoons, at all times, in all places, and on all occasions, services and trades, with leave to sail or navigate with or without pilots, to go on trial trips and to assist and tow vessels or craft in distress, but the Vessel may not be towed, except as is customary or when in need of assistance, nor shall the Vessel render assistance or undertake towage or salvage services under contract previously arranged by the Assured, the Owners, the Managers or the Charterers of the Vessel, nor shall the Vessel, in the course of trading operations, engage in loading or discharging cargo at sea, from or onto another vessel other than a barge. lighter or similar craft used principally in harbors or inland waters. The phrase "engage in loading or discharging cargo at sea" shall include while approaching, leaving or alongside, or while another vessel is approaching, leaving or alongside the Vessel. The Vessel is held covered in case of any breach of conditions as to cargo, trade, locality, towage or salvage activities, or date of sailing, or loading or discharging cargo at sea, provided (a) notice is given to the Underwriters inunediately following receipt of knowledge thereof by the Assured, and (b) any amended terms of cover and any additional premium required by the Underwriters are agreed to by the Assured. PERILS Touching the adventures and perils which the Underwriters are contented to bear and take upon themselves, they are of the Seas, men -of -war, fire, lightning, earthquake, Enemies, Pirates, Rovers, Assailing Thieves, Jettisons, Letters of Mart and Counter -Mart, Surprises, Taking at Sea, Arrests, Restraints and Detainment's of all Kings, Princes, Peoples, of what nation, condition or quality so ever, Barratry of the Master and Mariners and of all other like Perils, Losses and Misfortunes that have or shall come to the Hurt, Detriment or Damage of the Vessel, or any part thereof, excepting, however, such of the foregoing perils as may be excluded by provisions elsewhere in the Policy or by endorsement thereon. 2 ADDITIONAL PERILS (INCHMAREE) Subject to the conditions of this Policy, this insurance also covers loss of or damage to the Vessel directly caused by the following: Accidents in loading, discharging or handling cargo, or in bunkering; Accidents in going on or off, or while on drydocks, graving docks, ways, gridirons or pontoons; Explosions on shipboard or elsewhere; Breakdown of motor generators or other electrical machinery and electrical connections thereto, bursting of boilers, breakage of shafts, or any latent defect in the machinery or hull, (excluding the cost and expense of replacing or repairing the defective part); Breakdown of or accidents to nuclear installations or reactors not on board the vessel named herein; Contact with aircraft, rockets or similar missiles, or with any land conveyance; Negligence of charterers and/or repairers, provided such charterers and/or repairers are not an Assured hereunder; Negligence of Masters, Officers, Crew or pilots; Provided such loss or damage has not resulted from want of due diligence by the Assured, the Owners or Managers of the Vessel, or any of them. Masters, Officers, Crew or pilots are not to be considered Owners within the meaning of this clause should the hold shares in the Vessel. DELIBERATE DAMAGE (Pollution Hazard) Subject to the terms and conditions of this Policy, this insurance also covers loss of or damage to the Vessel directly caused by governmental authorities acting for the public welfare to prevent or mitigate a pollution hazard, or threat thereof, resulting directly from damage to the Vessel for which the Underwriters are liable under this Policy, provided such act of government authorities has not resulted from want of due diligence by the Assured, the owners or managers of the Vessel or any of them to prevent or mitigate such hazard or threat. Masters, Officers, Crew or Pilots are not to be considered Owners within the meaning of this clause should they hold shares in the Vessel. CLAIMS (GENERAL PROVISIONS) In the event of accident whereby loss or damage may result in a claim under this insurance, notice must be given to the Underwriters promptly after the date on which the Assured, Owners, or Managers become or should have become aware of the loss or damage and prior to survey so that a surveyor may be appointed if the Underwriters so desire. GENERAL AVERAGE AND SALVAGE General average and salvage shall be payable as provided in the contract of a freightment, or failing such provision or there be no contract of afreightment, payable at the Assured's election either in accordance with the York - Antwerp Rules, 1950 or 1974 or with the laws and usage's of the Port of New York. Provided always that when an adjustment according to the laws and usage's of the port of destination is properly demanded by the owners of the cargo, General Average shall be paid accordingly. In the event of salvage, towage or other assistance being rendered to the Vessel by any vessel belonging in whole or in part to the same Owners or Charterers, the value of such services (without regard to the common ownership or control of the vessels) shall be ascertained by arbitration in the manner provided for under the Collision Liability clause in this Policy, and the amount so awarded so far as applicable to the interest hereby insured shall constitute a charge under this Policy. When the contributory value of the Vessel is greater than the Agreed Value herein the liability of the Underwriters for General Average contribution (except in respect to amounts made good to the Vessel), or Salvage shall not exceed that proportion of the total contribution due from the Vessel which the amount insured hereunder bears to the contributory value; and if because of damage for which the Underwriters are liable as Particular Average, the value of the vessel has been reduced for the purpose of contribution, the amount of such Particular Average damage recoverable under this policy shall first be deducted from the amount insured hereunder, and the Underwriters shall then be liable only for the proportion which such net amount bears to the contributory value. 3 TOTAL LOSS In ascertaining whether the Vessel is a constructive Total Loss the Agreed Value shall be taken as the repaired value and nothing in respect of the damaged or break up value of the Vessel or wreck shall be taken into account. There shall be no recovery for a constructive total loss hereunder unless the expense of recovering and repairing the Vessel would exceed the Agreed Value. In making this determination, only expenses incurred or to be incurred by reason of a single accident or a sequence of damages arising from the same accident shall be taken into account, but expenses incurred prior to the tender of abandonment shall not be considered if such are to be claimed separately under the Sue and labor clause. In the event of Total Loss (actual or constructive), no claim to be made by the Underwriters for freight, whether notice of abandonment has been given or not. In no case shall the Underwriters be liable for unrepaired damage in addition to a subsequent Total Loss sustained during the period covered by this Policy. SUE AND LABOR And in case of any Loss or Misfortune it shall be lawful and necessary for the Assured, their Factors, Servants and Assigns, to sue, labor and travel for, in and about the defense, safeguard and recovery of the Vessel, or any part thereof, without prejudice to this insurance, to the charges whereof the Underwriters will contribute their proportion as provided below. And it is expressly declared and agreed that no acts of the Underwriters or Assured in recovering, saving or preserving the Vessel shall be considered as a waiver or acceptance of abandonment. In the event of expenditure under the Sue and Labor clause, the Underwriters shall pay the proportion of such expenses that the amount insured hereunder bears to the Agreed Value, or that the amount insured hereunder (less loss and or damage payable under this Policy) bears to the actual value of the salved property; whichever proportion shall be less; provided always that their liability for such expenses shall not exceed their proportionate part of the Agreed Value. If claim for Total Loss is admitted under this Policy and sue and labor expenses have been reasonably incurred in excess of any proceeds realized or value recovered, the amount payable under this policy will be the proportion of such excess that the Amount Insured hereunder (without deduction for loss or damage) bears to the Agreed Value or to the sound value of the Vessel at the time of the accident, whichever value was greater; provided always that Underwriters' liability for such expenses shall not exceed their proportionate part of the Agreed Value. The foregoing shall also apply to expenses reasonably incurred in salving or attempting to salve the Vessel and other property to the extent that such expenses shall be regarded as having been incurred in respect of the Vessel. COLLISION LIABILITY And it is further agreed that: (a) if the vessel shall come into collision with any other ship or vessel, and the Assured or the Surety in consequence of the Vessel being at fault shall become liable to pay and shall pay by way of damages to any other person or persons any sum or sums in respect of such collision, the Underwriters will pay the Assured or the Surety, whichever shall have paid, such proportion of such sum or sums so paid as their respective subscriptions hereto bear to the Agreed Value; provided always that their liability in respect to any one such collision shall not exceed their proportionate part of the Agreed Value. in cases where, with the consent in writing of a majority (in amount) of Hull Underwriters, the liability of the Vessel has been contested, or proceedings have been taken to limit liability, the Underwriters will also pay a like proportion of the costs which the Assured shall thereby incur or be compelled to pay. When both vessels are to blame, then, unless the liability of the owners or charterers of one or both such vessels becomes limited by law, claims under the Collision Liability clause shall be settled on the principle of Cross - Liabilities as if the owners or charterers of each vessel had been compelled to pay to the owners or charterers of the other such vessels such one- half or other proportion of the latter's damages as may have been properly allowed in ascertaining the balance or the sum payable by or to the Assured in consequence of such collision. The principles involved in this clause shall apply to the case where both vessels are the property, in part or in whole, of the same owners or charterers, all questions of responsibility and amount of liability as between the two vessels being left to the (b) 4 decision of a single arbitrator, if the parties can agree upon a single arbitrator, or failing such agreement, to the decision of Arbitrators, one to be appointed by the Assured and one to be appointed by the majority (in amount) of Hull Underwriters interested; the two Arbitrators chosen to choose a third arbitrator before entering upon the reference, and the decision of such single Arbitrator, or of any two of such three Arbitrators, appointed as above, to be fmal and binding. Provided always that this clause shall in no case extend to any sum which the Assured or the Surety may become liable to pay or shall pay in consequence of, or with respect to: (a) removal or disposal of obstructions, wrecks or their cargoes under statutory powers or otherwise pursuant to law; (b) injury to real or personal property of every description; (c) the discharge, spillage, emission or leakage of oil, petroleum products, chemicals or other substances of any kind or description whatsoever; (d) cargo or other property on or the engagements of the Vessel; (e) loss of life, personal injury or illness, Provided further that exclusions (b) and 8 above shall not apply to injury to other vessels or property thereon except to the extent that such injury arises out of any action taken to avoid, minimize or remove any discharge, spillage, emission or leakage described in 8 above. PILOTAGE AND TOWAGE This insurance shall not be prejudiced by reason of any contract limiting in whole or in part the liability of pilots, tugs, towboats, or their owners when the Assured or the agent of the Assured accepts such contracts in accordance with established local practice. Where in accordance with such practice, pilotage or towage services are provided under contracts requiring the Assured or the agent of the Assured: (a) to assume liability for damage resulting from collision of the Vessel insured with any other ship or vessel, including the towing vessel, or (b) to indemnify those providing the pilotage or towage services against loss or liability for such damages, It is agreed that amounts paid by the Assured or Surety pursuant to such assumed obligations shall be deemed payments "by way of damages to any other person or persons" and to have been paid "in consequence of the Vessel being at fault" within the meaning of the Collision Liability clause in this Policy to the extent that such payments would have been covered if the Vessel had been legally responsible in the absence of any agreement. Provided always that in no event shall the aggregate amount of liability of the Underwriters under the Collision Liability clause, including this clause, be greater than the amount of any statutory limitation of liability to which owners are entitled or would be entitled if liability under any contractual obligation referred to in this clause were included among the liabilities subject to such statutory limitations. CHANGE OF OWNERSHIP In the event of any change, voluntary or otherwise, in the ownership or flag of the Vessel, or if the Vessel be placed under new management, or be chartered on a bareboat basis or requisitioned on that basis, or if the Classification Society of the Vessel or her class therein be changed, canceled or withdrawn, then, unless the Underwriters agree thereto in writing, this Policy shall automatically terminate at the time of such change of ownership, flag, management, charter, requisition or classification; provided, however, that: (a) if the Vessel has cargo on board and has already sailed from her loading port, or is at sea in ballast, such automatic termination shall, if required, be deferred until arrival at fmal port of discharge if with cargo, or at port of destination if in ballast; (b) in the event of an involuntary temporary transfer by requisition or otherwise, without prior execution of a written agreement by the Assured, such automatic termination shall occur fifteen days after such transfer. This insurance shall not inure to the benefit of any transferee or charterers of the Vessel, and, if a loss payable hereunder should occur between the time of change or transfer and any deferred automatic termination, the Underwriters shall be subrogated to all the rights of the Assured against the transferee or charterers in respect of all or part of such loss as is 5 recoverable from the transferee or charterers, and in the proportion which the amount insured hereunder bears to the Agreed Value. The term "new management" as used above refers only to the transfer of the management of the Vessel from one firm or corporation to another, and it shall not apply to any internal changes within the offices of the Assured. ADDITIONAL INSURANCES It is a condition of this insurance that no additional insurance against the Total Loss of the Vessel shall be effected to operate during the currency of this Policy by or for the account of the Assured, Owners, Managers, Operators or Mortgagees except on the interests and up to the amounts enumerated in the following Sections (a) to (g) inclusive, and no such insurance shall be subject to P.P.I., F.I.A. or other like term on any interests whatever excepting those enumerated in Section (a); provided always and notwithstanding the limitation on recovery in the Assured clause a breach of this condition shall not afford the Underwriters any defense to a claim by a Mortgagee who has accepted this Policy without knowledge of such breach: (a) DISBURSEMENTS, MANAGERS' COMMISSIONS, PROFITS OR EXCESS OR INCREASED VALUE OF HULL AND MACHINERY AND /OR SIMILAR INTERESTS HOWEVER DESCRIBED, AND FREIGHT (INCLUDING CHARTERED FREIGHT OR ANTICIPATED FREIGHT) INSURED FOR TIME. An amount not exceeding 25% of the Agreed Value. FREIGHT OR HIRE, UNDER CONTRACTS FOR VOYAGE. An amount not exceeding the gross freight or hire for the current cargo passage and next succeeding cargo passage (such insurance to include, if required, a preliminary and an intermediate ballast passage) plus the charges of insurance. In the case of a voyage charter where payment is made on a time basis, the amount shall be calculated on the estimated duration of the voyage, subject to the limitation of two cargo passages as laid down herein. Any amount permitted under this section shall be reduced, as the freight or hire is earned, by the amount so earned. Any freight or hire to be earned under the form of Charters described in (d) below shall not be permitted under this Section (b) if any part thereof is insured as permitted under said Section (d). (c) ANTICIPATED FREIGHT IF THE VESSEL SAILS IN BALLAST AND NOT UNDER CHARTER. An amount not exceeding the anticipated gross freight on next cargo passage, such amount to be reasonably estimated on the basis of the current rate of freight at time of insurance, plus the charges of insurance. Provided, however, that no insurance shall be permitted by this Section if any insurance is effected as permitted under Section (b). (d) TIME CHARTER HIRE OR CHARTER HIRE FOR SERIES OF VOYAGES. An amount not exceeding 50% of the gross hire which is to be earned under the charter in a period not exceeding 18 months. Any amount permitted under this Section shall be reduced as the hire is earned under the charter by 50% of the gross amount so earned, but where the charter is for a period exceeding 18 months, the amount insured need not be reduced while it does not exceed 50 % of the gross hire still to be earned under the charter. An insurance permitted by this section may begin on the signing of the charter. (e) PREMIUMS. An amount not exceeding the actual premiums of all interests insured for a period not exceeding 12 months (excluding premiums insured as permitted under the foregoing sections but including, if required, the premium or estimated calls on any Protection and Indemnity or War Risks and Strikes insurance) reducing pro rata monthly. (f) RETURNS OF PREMIUM. An amount not exceeding the actual returns which are recoverable subject to "and arrival" or equivalent provision under any policy of insurance. INSURANCE IRRESPECTIVE OF AMOUNT AGAINST: - Risks excluded by War, Strikes and Related Exclusions clause; risks enumerated in the Institute War Risks and Strikes clauses; and General Average and Salvage Disbursements. (b) (g) WAR, STRIKES AND RELATED EXCLUSIONS The following conditions shall be paramount and shall supersede and nullify any contrary provisions in the Policy. This Policy does not cover any loss, damage, or expense caused by, resulting from, or incurred as consequence of: (a) Capture, seizure, arrest, restraint or detainment, or any attempt thereat; or 6 (b) Any taking of the Vessel, by requisition or otherwise, whether in time of peace or war and whether lawful or otherwise; or (c) Any mine, bomb or torpedo not carried as cargo on board the Vessel; or (d) Any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter; or (e) Civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or piracy: or (f) Strikes, lockouts, political or labor disturbances, civil commotion, riots, martial law, military or usurped power; or (g) Malicious acts or vandalism, unless committed by the Master or Mariners and not excluded elsewhere under this War Strikes and Related Exclusions clause; or (h) Hostilities or warlike operations (whether there be a declaration of war or not) but this subparagraph (h) not to exclude collision or contact with aircraft, rockets or similar missiles, or with any fixed or floating object, or stranding, heavy weather, fire or explosion unless caused directly by a hostile act by or against a belligerent power which act is independent of the nature of the voyage or service which the vessel concerned or, in the case of a collision, any other vessel involved therein, is performing. As used herein, "power" includes any authority maintaining naval, military or air force in association with a power. If war risks or other risks excluded by this clause are hereafter insured by endorsement on this Policy, such endorsement shall supersede the above conditions only to the extent that the terms of such endorsement are inconsistent therewith and only while such endorsement remains in force. 7 PROTECTION & INDEMNITY SP23 (Revised 1/56) Amount Insured AS PER DECLARATION PAGE Premium Rate AS PER DECLARATION PAGE AS AGREED AS PER DECLARATION PAGE hereinafter called the Assured. Policy No. AS PER DECLATARTION PAGE Loss, if any, payable to Named Assured. In the sum of At and from the: AS PER DECLARATION PAGE To: AS PER DECLARATION PAGE against the liabilities of the Assured as hereinafter described, and subject to the terms and conditions hereinafter set forth , in respect of the vessel called the AS PER DECLARATION PAGE or by whatsoever other names the said vessel is or shall be named or called. In consideration of the stipulations herein named and of $ AS PER DECLARATION PAGE being premium at the rate of AS AGREED The Assurer hereby undertakes to make good to the Assured or the Assured's executors, administrators and/or successors, all such loss and/or damage and /or expense as the Assured shall as owners of the vessel named herein have become liable to pay and shall pay on account of the liabilities, risks, events and/or happenings herein set forth: Loss of Life, injury (1) Liability for Toss of life of , or personal injury to, or illness of, any person, excluding, however, unless otherwise agreed and illness by endorsement hereon, liability under any Compensation Act to any employee of the Assured, (other than a seaman) or in case of death to his beneficiaries or others. Hospital, medical, or (2) other expenses Damage to other (3) vessel or property on board caused by collision Principle of cross- (4) liabilities to prevail Damage to other (5) vessel or property on board not caused by collision. Damage to docks, (6) piers, etc. Protection hereunder for loss of life or personal injury arising in connection with the handling of cargo of the vessel named herein shall commence from the time of receipt by the Assured of the cargo on dock or wharf or on craft alongside the said vessel for loading thereon and shall continue until delivery thereof from dock or wharf of discharge or until discharge from the said vessel on to another vessel or craft. Liability for hospital, medical, or other expenses necessarily and reasonably incurred in respect of loss of life of, personal injury to, or illness of any member of the crew of the vessel named herein or any other person. Liability hereunder shall also include burial expenses not exceeding Two Hundred ($200) Dollars, when necessarily and reasonably incurred by the Assured for the burial of any seaman of said vessel. Liability for repatriation expenses of any member of the crew of the vessel named herein, necessarily and reasonably incurred, under statutory obligation, excepting such expenses as arise out of or ensue from the termination of any agreement in accordance with the terms thereof, or by mutual consent, or by sale of the said vessel, or by other ad of the Assured. Wages shall be included in such expenses when payable under statutory obligation, during unemployment due to the wreck or loss of the said vessel. Liability for loss of, or damage to, any other vessel or craft, or to the freight thereof, or property on such other vessel or craft, caused by collision with the vessel named herein, insofar as such liability would not be covered by full insurance under the AMERICAN INSTITUTE HULL CLAUSES (JUNE 2, 1977) form (including the four - fourths running -down clause). (a) Claims under this clause shall be settled on the principle of cross - liabilities to the same extent only as provided in the running -down clause above mentioned. (b) Claims under this clause shall be divided among the several classes of claims enumerated in this policy and each class shall be subject to the deduction and special conditions applicable in respect of such class. (c) Notwithstanding the foregoing, if any one or more of the various liabilities arising from such collision has been compromised, settled or adjusted without the written consent of the Assurer, the Assurer shall be relieved of liability for any and all claims under this clause. Liability for loss of or damage to any other vessel or craft, or to a property on such other vessel or craft, not caused by collision, provided such liability does not arise by reason of a contract made by the assured. Where there would be a valid claim hereunder but for the fact that the damaged property belongs to the Assured, the Assurer shall be liable as if such damaged property belonged to another, but only for the excess over any amount recoverable under any other insurance application on the property. Liability for damage to any dock, pier, harbor, bridge, jetty, buoy, lighthouse, breakwater, structure, beacon, cable, or to any fixed or movable object or property whatsoever, except another vessel or craft, or property on another vessel or craft. Where there would be a valid claim hereunder but for the fact that the damaged property belongs to the Assured, the Assurer shall be liable as if such damaged property belonged to another, but only for the excess over any amount recoverable under any other insurance applicable on the property. 8 Removal of wreck (7) Liability for cost or expenses of, or incidental to, the removal of the wreck of the vessel named herein when such removal is compulsory by law, provided, however, that : (a) There shall be deducted from such claim for cost or expenses, the value of any salvage from or which might have been recovered from the wreck, inuring, or which might have inured, to the benefit of the Assured. (b) The Assurer shall not be liable for such costs or expenses which would be covered by full insurance under the AMERICAN INSTITUTE HULL CLAUSES (JUNE 2, 1977) or claims arising out of hostilities or war -like operations, whether before or after declaration of war. Cargo (8) Liability for loss of, or damage to, or in connection with cargo or other property, excluding mail and parcel post, including baggage and personal effects of passengers, to be carried, carried, or which has been carried on board the vessel named herein: Provided, however. that no liability shall exist under this provision for: Specie, bullion, (a) Loss, damage or expense arising out of or in connection with the custody, care, carriage or delivery of precious specie, bullion, precious stones, precious metals, jewelry, silks, furs, bank notes, bonds or other negotiable stones, etc. documents or similar valuable property, unless specially agreed to and accepted for transportation under a form of contract approved, in writing, by the Assurer. Refrigeration (b) Loss of, or damage to, or in connection with cargo requiring refrigeration unless the space, apparatus and means used for the care, custody, and carriage thereof have been surveyed by a classification surveyor or other competent disinterested surveyor under working conditions before the commencement of each voyage and found in all respects fit, and unless accepted for transportation under a form of contract approved, in writing, by the Assurer. Passengers' (c) Loss, damage, or expense in connection with any passenger's baggage or personal effects, unless the form effects of ticket issued to the passenger shall have been approved, in writing, by the Assurer. Stowage in (d) Loss, damage, or expense arising from stowage of underdeck cargo on deck or stowage of cargo in spaces improper not suitable for its carriage, unless the Assured shall show that every reasonable precaution has been taken places by him to prevent such improper stowage. Deviation (e) Loss, damage, or expense arising from any deviation, or proposed deviation, not authorized by the contract of affreightment, known to the Assured in time to insure specifically the liability therefor, unless notice thereof is given to the Assurer and the Assurer agrees, in writing, that such insurance is unnecessary. Freight on (f) Freight on cargo short delivered, whether or not prepaid or whether or not included in the claim and paid by cargo short the Assured. delivered Misdescription (g) Loss, damage, or expense arising out of or as a result of the issuance of Bills of Lading which, to the of Goods knowledge of the Assured, improperly describe the goods or their containers as to condition or quantity. Failure to (h) Loss, damage, or expense arising out of delivery of cargo without surrender of Bill of Lading. surrender Bili of Lading Protective clauses required in contract of affreightment And provided further that (aa) Liability hereunder shall in no event exceed that which would be imposed by law in the absence of contract. (bb) Liability hereunder shall be limited to such as would exist if the Charter Party, Bili of Lading or Contract of Affreightment contained the following clause (in substitution for the clause commonly known as the Jason Clause): "In the event of accident, danger, damage or disaster before or after commencement of the voyage, resulting from any cause whatsoever, whether due to negligence or not, for which, or for the consequences of which, the shipowner is not responsible, by statute or contract or otherwise, the shippers, consignees or owners of the cargo shall contribute with the shipowner in general average to the payment of any sacrifices, losses or expenses of a general average nature that may be made or incurred, and shall pay salvage and special charges incurred in respect of the cargo" When cargo is carried by the vessel named herein under a bill of lading or similar document of title subject or made subject to the Carriage of Goods by Sea Act, April 16, 1936, liability hereunder shall be limited to such as is imposed by said Act, and if the Assured or the vessel named herein assumes any greater liability or obligation than the minimum liabilities and obligations imposed by said Act, such greater liability or obligation shall not be covered hereunder. When cargo is carried by the vessel named herein under a charter party, bill of lading or contract of affreightment not subject or made subject to the Carnage of Goods by Sea Act, April 16, 1936, liability hereunder shall be limited to such as would exist if said charter party, bill of lading, or contract of affreightment contained the following clauses: a clause limiting the Assured's liability for total loss or damage to goods shipped to Two Hundred and Fifty ($250) Dollars per package, or in case of goods not shipped in packages, per customary freight unit, and providing for pro rata adjustment on such basis for partial loss or damage; a clause exempting the Assured and the vessel named herein from liability for losses arising from unseaworthiness, even though existing at the beginning of the voyage, provided that due diligence shall have been exercised to make the vessel seaworthy and properly manned, equipped, and supplied; a clause providing that the carrier shall not be liable for claims in respect of cargo unless notice of claim is given 9 within the time limited in such Bill of Lading and suit is brought thereon within the limited time prescribed therein; and such other protective clauses as are commonly in use in the particular trade; provided the incorporation of such clauses is not contrary to law. The foregoing provisions as to the contents of the Bill of Lading and the limitation of the Assurer's liability may, however, be waived or altered by the Assurers on terms agreed, in writing. Assured's own (cc) Where cargo on board the vessel named herein is the property of the Assured, such cargo shall be deemed cargo to be carried under a contract containing the protective clauses described in the preceding paragraph, and such cargo shall be deemed to be fully insured under the usual form of cargo policy, and in case of Toss thereof or damage thereto the Assured shall be insured hereunder in respect of such loss or damage only to the extent that they would have been covered if said cargo had belonged to another, but only in the event and to the extent that the loss or damage would not be recoverable under a cargo policy as hereinbefore specified. Cotton Bills of (dd) The Assured's liability for claims under Custody Cotton Bills of Lading issued under the conditions laid down Lading by the Liverpool Bill of Lading Conference Committee, is covered subject to previous notice of contract and payment of an extra premium of two (2¢) cents per ton gross register per voyage, but such additional premium shall be waived provided every bale is re- marked at a port of shipment on another portion of the bale. Land transportation Customs, immigration or other fines or penalties Mutiny or other misconduct Extraordinary expenses in case of quarantine, etc. Deviation for purpose of landing injured Seaman Cargo's proportion of general average Costs and Charges Prompt notice of claim Settlement of claims (9) (ee) No liability shall exist hereunder for any loss, damage or expense in respect of cargo or other property being transported on land or on another vessel. No liability shall exist hereunder for any loss, damage or expense in respect of cargo before loading on or after discharge from the vessel named herein caused by flood, time, windstorm, earthquake, fire, explosion, heat, cold, deterioration, collapse of wharf, leaky shed, theft or pilferage unless such loss, damage or expense is caused directly by the vessel named herein, her master, officers or crew. Liability for fines and penalties, including expenses necessarily and reasonably incurred in avoiding or mitigating same, for the violation of any of the laws of the United States, or of any State thereof, or of any foreign country; provided, however, that the Assurer shall not be liable to indemnify the Assured against any such fines or penalties resulting directly or indirectly from the failure, neglect, or default of the Assured or his managing officers or managing agents to exercise the highest degree of diligence to prevent a violation of any such laws. (10) Expenses incurred in resisting any unfounded claim by the master or crew or other persons employed on the vessel named herein, or in prosecuting such persons in case of mutiny or other misconduct. (11) Liability for extraordinary expenses resulting from outbreak of plague or other contagious disease, including such expenses incurred for disinfection of the vessel named herein or persons on board, or for quarantine, but excluding the ordinary expenses of loading and /or discharging, and the wages and provisions of crew and passengers; each claim under this provision is subject to a deduction of Two Hundred ($200) Dollars. It is provided further, however, that if the vessel named herein be ordered to proceed to a port when it is or should be known that calling there will subject the vessel to the extraordinary expenses above mentioned, or to quarantine or disinfection there or elsewhere, the Assurer shall be under no obligation to indemnify the Assured for any such expenses. (12) Net loss due to deviation incurred solely for the purpose of landing an injured or sick seaman in respect of port charges incurred, insurance, bunkers, stores, and provisions consumed as a result of the deviation. (13) Liability for, or loss of, cargo's proportion of general average, including special charges, in so far as the Assured cannot recover same from any other source; subject however, to the exclusions of Section (8) and provided, that if the Charter Party, Bill of Lading or Contract of Affreightment does not contain the quoted clause under Section 8 (bb) the Assurer's liability hereunder shall be limited to such as would exist if such clause were contained therein. (14) Costs, charges, and expenses, reasonably incurred and paid by the Assured in defense against any liabilities insured against hereunder in respect of the vessel named herein, subject to the agreed deductibles applicable, and subject further to the conditions and limitations hereinafter provided. GENERAL CONDITIONS AND /OR LIMITATIONS Warranted that in the event of any occurrence which may result in loss, damage and /or expense for which this Assurer is or may become liable, the Assured will use due diligence to give prompt notice thereof and forward to the Assurer as soon as practicable after receipt thereof, all communications, processes, pleadings and other legal papers or documents relating to such occurrences. The Assured shall not make any admission of liability, either before or after any occurrence which may result in a claim for which the Assurer may be liable. The Assured shall not interfere in any negotiations of the Assurer, for settlement of any legal proceedings in respect of any occurrences for which the Assurer is liable under this policy; provided, however, that in respect of any occurrence likely to give rise to a claim under this policy, the Assured are obligated to and shall take steps to protect their (and /or the Assurer's) interests as would reasonably be taken in the absence of this or similar insurance. If the Assured shall fail or refuse to settle any claim as authorized by Assurer, the liability of the Assurer to the Assured shall be limited to the amount for which settlement could have been made. 10 Assured to assist with evidence in defense, etc. Law costs Subrogation Cover elsewhere Assignments Actions against Assurers Time limitation Lay -up returns Whenever required by the Assurer the Assured shall aid in securing information and evidence and in obtaining witnesses and shall cooperate with the Assurer in the defense of any claim or suit or in the appeal from any judgment, in respect of any occurrence as hereinbefore provided. The Assurer shall not be liable for the cost or expense of prosecuting or defending any claim or suit unless the same shall have been incurred with the written consent of the Assurer, or the Assurer shall be satisfied that such approval could not have been obtained under the circumstances without unreasonable delay, or that such costs and charges were reasonably and properly incurred, such cost or expense being subject to the deductible. The cost and expense of prosecuting any claim in which the Assurer shall have an interest by subrogation or otherwise, shall be divided between the Assured and the Assurer, proportionately to the amounts which they would be entitled to receive respectively, if the suit should be successful. The Assurer shall be liable for the excess where the amount deductible under this policy is exceeded by (A) the cost of investigating and /or successfully defending any claim or suit against the Assured based on a liability or an alleged liability of the Assured covered by this insurance, or (B) the amount paid by the Assured either under a judgment or an agreed settlement based on the liability covered herein including all costs, expenses of defense and taxable disbursements. The Assurer shall be subrogated to all the rights which the Assured may have against any other person or entity, in respect of any payment made under this policy, to the extent of such payment, and the Assured shall, upon the request of the Assurer, execute all documents necessary to secure to the Assurer such rights. The Assurer shall be entitled to take credit for any profit accruing to the Assured by reason of any negligence or wrongful act of the Assured's servants or agents, up to the measure of their loss, or to recover for their own account from third parties any damage that may be provable by reason of such negligence or wrongful act. Provided that where the Assured is, irrespective of this insurance, covered or protected against any loss or claim which would otherwise have been paid by the Assurer, under this policy, there shall be no contribution by the Assurer on the basis of double insurance or otherwise. No claim or demand against the Assurer under this policy shall be assigned or transferred, and no person, excepting a legally appointed receiver of the property of the Assured, shall acquire any right against the Assurer by virtue of this insurance without the expressed consent of the Assurer. No action shall lie against the Assurer for the recovery of any loss sustained by the Assured unless such action is brought against the Assurer within one year after the final judgment or decree is entered in he litigation against the Assured, or in case the claim against the Assurer accrues without the entry of such final judgment or decree, unless such action is brought within one year from the date of the payment of such claim. The Assurer shall not be liable for any claim not presented to the Assurer with proper proofs of loss within six (6) months after payment thereof by the Assured. At the expiration of this policy, the Assurer is to return for each thirty (30) consecutive days during the term of this insurance the vessel may be laid up in a safe port; or for each thirty (30) consecutive days during the term of this insurance the vessel may be laid up in a safe port without loading and /or discharging and without crew or cargo on board, provided the Assured give written notice to the Assurer as soon as practicable after the commencement and the termination of such lay -up period. 11 Notwithstanding anything to the contrary contained in this policy, no liability attaches to the Assurer: For any loss, damage, or expense which would be payable under the terms of the AMERICAN INSTITUTE HULL CLAUSES (JUNE 2, 1977) form of policy on hull and machinery, etc., if the vessel were fully covered by such insurance sufficient in amount to pay such loss, damage, or expense. For any Toss, damage or expense sustained by reason of capture, seizure, arrest, restraint or detainment, or the consequence thereof or of any attempt thereat; or sustained in consequence of military, naval or air action by force of arms, including mines and torpedoes or other missiles or engines of war, whether of enemy or friendly origin; or sustained in consequence of placing the vessel in jeopardy as an act or measure of war taken in the actual process of a military engagement, including embarking or disembarking troops or material of war in the immediate zone of such engagement; and any such loss, damage and expense shall be excluded from this policy without regard to whether the Assured's liability therefor is based on negligence or otherwise, and whether before or after a declaration of war. For any loss, damage, or expense arising from the cancellation or breach of any charter, bad debts, fraud of agents, insolvency, loss of freight hire or demurrage, or as a result of the breach of any undertaking to ,load any cargo, or in respect of the vessel named herein engaging in any unlawful trade or performing any unlawful act, with the knowledge of the Assured. For any loss, damage, expense, or claim arising out of or having relation to the towage of any other vessel or craft, whether under agreement or not, unless such towage was to assist such other vessel or craft in distress to a port or place of safety, provided, however, that this clause shall not apply to claims under this policy for loss of life or personal injury to passengers and /or members of the crew of the vessel named herein arising as a result of towing. For any claim for loss of life or personal injury in relation to the handling of cargo where such claim arises under a contract of indemnity between the Assured and his sub - contractor. It is expressly understood and agreed if and when the Assured under this policy has any interest other than as a shipowner in the vessel or vessels named herein, in no event shall the Assurer be liable hereunder to any greater extent than if such Assured were the owner and were entitled to all the rights of limitation to which a shipowner is entitled. Unless otherwise agreed by endorsement to this policy, liability hereunder shall in no event exceed that which would be imposed on the Assured by law in the absence of contract. Liability hereunder in respect of any one accident or occurrence is limited to the amount hereby insured. Attached to and forming part of Policy No. AS PER DECLARATION PAGE of SUNDERLAND MARINE INSURANCE COMPANY LIMITED 12 CHARTER VESSEL CLAUSES (H & M) HULL DEDUCTIBLE: AS PER DECALARATION PAGE Charter Vessel Clauses (H &M) American Institute Hull Clauses (6/2/77) American Institute Hull War Risks & Strike Clauses (12/77) American Institute S.R. & C. C. Endorsement (Hulls) IT IS AGREED THAT THE FOLLOWING CLAUSES SHALL BE CONSIDERED TO SUPERCEDE AND ANNUL ANY CLAUSES TO THE SAME OR SIMILAR EFFECT PRINTED IN OR ATTACHED TO THIS POLICY. CLAUSE NO. 1— CHARTER VESSEL CLAUSES (H &M) 1. Warranted free from loss or damage to guards, stanchions and/or bulwarks, caused by bumping, rubbing, or chafing, while loading and/or unloading at sea, or while moored in harbors or other mooring grounds or docks. 2. Warranted that the Assurer shall not be liable for loss of or damage to fish, bait, cargo, nets or dories, or fishing tackle and fishing equipment not normally installed upon and made part of subject named vessel, unless specifically insured under Clause No. 2. Fishing winches and/or gurdies are expressly included and covered under this policy. 3. It is understood and agreed that the following applies to claims on engines five (5) years of age or older. Claims resulting from loss or damage to engines, propulsion machinery, generators, outdrives, and transmissions are subject to adjustment on an actual cash value basis. This valuation does not apply to claims resulting from loss or damage to propellers and/or the propeller shafts. 4. Radio apparatus and equipment and other apparatus of equipment used for the purposes of communication or as aids to navigation or safety devices shall be covered by this policy and included within the agreed valuation of the Hull, even when not owned by the Assured, provided the Assured has assumed liability therefore; but the liability of the Assurer's (either as to amount or as to the risks covered) shall not exceed the assured's liability to the owner of such equipment, or the liability to which Assurer's would be subject if the equipment were fully owned by the Assured, whichever shall be least. Such equipment, including fishing gear not otherwise excluded and normally installed upon and made past of subject named vessel, when owned by the Insured may be stored ashore for safe keeping and/or repair. The within is extended to include the risks of fire, lightning, windstorm, earthquake, tidal waves, flood waters, landslides and collapse or subsidence of structures. In such event the total amount of the Hull and Machinery insurance on the vessel shall be reduced by the amount stowed ashore. Theft is a covered peril within this clause provided that visible evidence of forcible entry or forcible removable be shown or that there be actual arrest and conviction of thieves. 5. Subject to the average and deductible average warranties herein, it is understood and agreed that this insurance expressly covers loss of, or damage to, the insured vessel caused by accidents in docking, undocking, or collapse of ways, gridirons, graving docks, or other dock structures. 6. Vessel(s) having navigation limits as set out in this Policy (other than to produce bait or supplies) are held covered at rates to be agreed by Underwriters subject to prompt notice of such navigational breach. 7. If the insured vessel is disabled or in distress, a towing vessel may be engaged with release of tower's liability, Assurers waiving subrogation against such towing vessel. 8. From the cost of cleaning and painting the bottom of a vessel (exclusive of dry dock charges), recoverable in 13 average, there shall be deducted one - twelfth for every month since the vessel was last painted, but no allowance shall be made for cleaning and painting on account of exposure to air unless the vessel has been more than twenty four hours on dry dock. 9. It is agreed that all claims settlements shall be made within 30 (thirty) days from the date of agreement between the parties hereto of any sum or sums due to be paid under this insurance. 10. In case of loss, such loss to be paid after all indebtedness of the Assured to "Marine Underwriters" and/or the Companies named herein, is first deducted. 11. The Assured(s) must engage the services of Underwriters surveyor for all damage surveys, etc. Underwriters to bear full cost of all such surveys regardless of whether or not the resultant claim exceeds the policy deductible. All vessels herein are subject to a surveyor approved by Underwriters. It is a condition of this insurance that all recommendations developed upon survey and required by Underwriters will be complied with as soon as practicable at Underwriters discretion. 12. In consideration of the premium paid, it is understood and agreed that subject to the terms and conditions of the Policy, this insurance also covers loss or damage to the vessel directly caused by governmental authorities acting for which Underwriters are liable under this policy, provided such act as Governmental authorities has not resulted from want of due diligence by the Assured, the Owners as managers of the vessel or any of them, to prevent or investigate such hazard or threat, Masters, Officers, Crew, or Pilots are not to be considered Owners within the meaning of his claim should they hold shares in the vessel. 13. Policy Lay -up notwithstanding, permission is hereby granted to proceed to and from moorings, shipyards, and maintenance facilities as may be required during the Lay -up period, if any. 14. In consideration of the premium charged, coverage hereunder includes loss and/or damage caused by, or resulting from. Vandalism and/or Malicious Mischief, but subject otherwise to the policy terms and conditions. CLAUSE NO. 2 — DROPPING OFF /ANTI -THEFT CLAUSE In consideration for the premium as paid, it is hereby agreed that machinery is covered with the exclusion absolutely of "dropping off' risks and provided that the engine(s) are fitted with a patented anti -theft device at all items. CLAUSE NO. 3 - POLLUTION EXCLUSION CLAUSE Notwithstanding anything to the contrary this policy does not insure against any loss, damage, cost, liability, expense, fine or penalty of any kind or nature whatsoever, and whether statutory or otherwise, incurred by or imposed on the Assured, directly or indirectly, in consequence of, or with respect to, the actual or potential discharge, emission, spillage or leakage upon or into the seas, waters, land or air, of oil, petroleum products, chemicals or other substances of any kind or nature whatsoever. CLAUSE NO. 4 - INSTITUTE RADIOACTIVE CONTAMINATION, CHEMICAL, BIOLOGICAL, BIOCHEMICAL AND ELECTROMAGNETIC WEAPONS EXCLUSION CLAUSE This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith. 1. In no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed to by or arising from: i. ionizing radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel. ii. the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof. iii. any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter. 14 iv. The radioactive, toxic, explosive or other hazardous or contaminating properties of any radioactive matter. The exclusion in this sub - clause does not extend to radioactive isotopes, other than nuclear fuel, when such isotopes are being prepared, carried, stored, or used for commercial, agricultural, medical, scientific or other similar peaceful purposes. v. Any chemical, biological, bio- chemical, or electromagnetic weapon. CLAUSE NO. 5 - INSTITUTE CYBER ATTACH EXCLUSION CLAUSE This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith 1. Subject only to clause 2 below, in no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed to by or arising from the use or operation, as a means for inflicting harm, of any computer, computer system, computer software programme, malicious code, computer virus or process or any other electronic system. 2. Where this clause is endorsed on policies covering risks of war, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power, or terrorism or any person acting from a political motive, Clause 1.1 shall not operate to exclude losses (which would otherwise be covered)arising from the use of any computer, computer system or computer software programme or any other electronic system in the launch and/or guidance system and/or firing mechanism of any weapon or missile. CLAUSE NO. 6 — ASBESTOS EXCLUSION It is hereby understood and agreed that this insurance shall not apply to and does not cover any actual or alleged liability whatsoever for any claim or claims in respect of loss or losses directly or indirectly arising out of or resulting from or in consequence of asbestos in whatever form or quantity. ATTACHED TO AND FORMING A PART OF POLICY NO: AS PER DECLARATION PAGE OF SUNDERLAND MARINE INSURANCE COMPANY LIMITED ISSUED TO: AS PER DECLARATION PAGE 15 CHARTER VESSEL CLAUSES (P & I) P &I DEDUCTIBLE: AS PER DECLARATION PAGE NUMBER OF CREW: AS PER DECLARATION PAGE MAXIMUM PASSENGER COMPLEMENT: AS PER DECLARATION PAGE Charter Vessel Clauses (P &I) Protection & Indemnity SP -23 Form American Institute Pollution Exclusion Clause (P &I) And Buy Back Endorsement A (July 4, 1976) IT IS HEREBY NOTED AND AGREED THAT THE FOLLOWING CLAUSES SHALL BE CONSIDERED TO SUPERSEDE AND ANNUL ANY CLAUSES TO THE SAME OR SIMILAR EFFECT PRINTED IN OR ATTACHED TO THIS POLICY. CLAUSE NO. 1. - DEDUCTIBLE If this insurance is written subject to a deductible the Assured Agrees that the attorneys or claims adjusters appointed by the Underwriters shall likewise act on his behalf. The Assured further undertakes to furnish immediately on demand by such attorneys or claims adjusters any amount required to negotiate or settle any claim and to pay any legal or investigation charges up to the amount of the deductible. In the event of the Assured being in breach of requirements of this clause, he shall be considered in breach of clause 3 with penalty therein prescribed. CLAUSE NO. 2 - EXCESS COLLISION EXTENSION It is hereby agreed that liability in respect of damage to a third party vessel arising out of a collision involving the subject vessel of this policy insured by Sunderland Marine Insurance Company Limited shall be limited to either the agreed insured Hull value or the Protection and Indemnity limit which ever shall be the greater, but under no circumstances shall the total liability under this insurance be deemed to be the total of these two amounts. CLAUSE NO. 3 — CARGO LIABILITY EXCLUSION It is hereby understood and agreed that coverage as provided by Clause No. 8 in the SP -23 P &I Form is hereby deleted. Cargo Liability is excluded absolutely. CLAUSE NO. 4 — SWIMMING, DIVING AND WATERSPORTS ACTIVITIES EXCLUSION Notwithstanding anything to the contrary elsewhere herein, this Policy does not cover the swimming and diving activities of any person(s), including but not limited to passengers or crew, and this Policy excludes any and all liability including claims for damages to any person(s) (including but not limited to passengers and crew) with respect to accidents, injuries of whatsoever nature or death resulting from any cause whatsoever while any such person is in the water or engaged in swimming and diving activities. For purposes of this exclusion, "diving activities" means any and all activities of any person who enters the water to engage in SCUBA, SNUBA, surface supplied air diving, or snorkeling. For purposes of this Exclusion, "in the water" shall mean the entire time from which such person has left physical contact with the vessel (including vessel ladders) for purposes of entering the water, until such person has regained physical contact with the vessel (including vessel ladders) for the purposes of reboarding the vessel. This Policy also excludes any and all liability for damages or otherwise to any person(s) (including but not limited to passengers and crew) with respect to accidents, injuries or death of whatsoever nature resulting from or in any way related to the sale, servicing, storage or use of any diving equipment of any kind. Additionally, this policy shall not cover loss of life, injury to, or illness of any person arising from parasailing, waterskiing or any activity which involves person(s) being towed behind the insured vessel. This Exclusion shall not apply to liability for damages to members of the crew with respect to accidents, injuries or death which result from diving or other activities in the water that are solely related to necessary inspection of or repairs to the 16 vessel, which inspection or repairs could not safely have been deferred until independent contractor commercial divers were reasonably available to perform such inspection or repairs CLAUSE NO. 5 - POLLUTION EXCLUSION CLAUSE Notwithstanding anything to the contrary this policy does not insure against any loss, damage, cost, liability, expense, fine or penalty of any kind or nature whatsoever, and whether statutory or otherwise, incurred by or imposed, on the Assured, directly or indirectly, in consequence of, or with respect to, the actual or potential discharge, emission, spillage or leakage upon or into the seas, waters, land or air, of oil, petroleum products, chemicals or other substances of any kind or nature whatsoever. CLAUSE NO. 6 - OCCUPATIONAL DISEASE EXCLUSION Notwithstanding anything to the contrary in this policy, it is hereby understood and agreed that this policy is subject to the following exclusions and that this policy shall not apply to: 1. Any liability of whatsoever nature of the Assured, whether for damages, maintenance and cure, fines and penalties for funeral expenses, arising out of loss of life, of or injury to, or illness of, any person due to occupational and/or industrial diseases and/or injuries gradually contracted from the character of his present or prior employment, because thereof, and incidental thereto, and whether or not such employment be in the service of the Assured or otherwise; and 2. Any costs and expenses of investigating and/or defending any claim or suit against the Assured arising out of a liability or alleged liability of the Assured excluded above. CLAUSE NO. 7 - ILLEGAL FISHING No claims shall attach to this policy for the consequences of entering prohibited waters. Loss of life, personal injury and sickness shall not be considered a consequence of entering prohibited waters unless occurring in evading or attempting to evade arrest. CLAUSE NO. 8 - CO- OPERATION The assured shall render every assistance to facilitate investigation or adjustment of claims of effecting of settlements and to co- operate fully in the securing of evidence, the attendance of witnesses and the eliciting of information in defending such claims including the prosecution of appeals, it being understood that failure to comply fully with the provisions of this paragraph shall render the Policy null and void and that, in the event, no further obligation of any character shall rest upon the Company. CLAUSE NO. 9 — ASBESTOS EXCLUSION It is hereby understood and agreed that this insurance shall not apply to and does not cover any actual or alleged liability whatsoever for any claim or claims in respect of loss or losses directly or indirectly arising out of or resulting from or in consequence of asbestos in whatever form or quantity. ATTACHED TO AND FORMING A PART OF POLICY NO. AS PER DECLARATION PAGE OF SUNDERLAND MARINE INSURANCE COMPANY LIMITED ISSUED TO: AS PER DECLARATION PAGE 17 CHARTER VESSEL CLAUSES GENERAL TERMS AND CONDITIONS CLAUSE NO. 1 - TRADING WARRANTY AS PER DECLARATION PAGE CLAUSE NO. 2 — CANCELLATION A. In event of non - payment of premium 30 days after attachment or of any additional premium when due, this Policy may be cancelled by the Underwriters upon 10 days written or telegraphic notice sent to the Assured at his last known address or in the care of the broker who negotiated this policy. Such proportion of the premium, however, as shall have been earned up to the time of cancellation shall be payable. B. This policy may be cancelled at any time at the request of the assured, in which event this company shall be entitled to an earned premium at the customary short rate basis; and arrival. C. This policy may be cancelled at any time by this company by giving written notice mailed to the assured at his or their last known address. This shall constitute a complete notice of cancellation and this policy shall be null and void at noon, standard time at the place of issuance, on the tenth (10th) day after such notice shall have been mailed, provided, however, that if the vessel(s) insured has not been in any port within said period, cancellation shall take effect at noon, standard time, of the first day of arrival in any port. In case of cancellation by this company, pro rata premium will be charged and the amount of paid premium in excess of premiums earned to the effective date of cancellation shall be refunded upon demand after cancellation; and arrival. D. It is hereby understood and agreed that the period appearing under any other cancellation clause included m this policy of insurance in respect of the above mentioned vessel shall be deemed to be tenth (10) days in each and every instance. CLAUSE NO. 3 - FULL PREMIUM IF LOSS WARRANTY: It is a condition of this Policy that the full annual premium is payable hereunder if the vessel insured is a total and/or constructive total loss. CLAUSE NO. 4 — PUNITIVE OR EXEMPLARY DAMAGES Notwithstanding anything to the contrary elsewhere herein the Underwriters will not indemnify the Assured in respect of any liabilities imposed on the Assured as punitive or exemplary damages, however prescribed. CLAUSE NO. 5 — CANCELLING RETURNS ONLY In consideration for the premium as charged, it is hereby agreed that the premium shall be on the basis of CANCELLING RETURNS ONLY. No returns will be made m respect of this cover for any other reasons whatsoever. CLAUSE NO. 6 — LIBERALIZATION CLAUSE It is agreed that any revision adopted by underwriters which would broaden coverage without additional premium during the policy period, will immediately apply to this policy. ATTACHED TO AND FORMING A PART OF POLICY NO. AS PER DECLARATION PAGE OF SUNDERLAND MARINE INSURANCE COMPANY LIMITED ISSUED TO: AS PER DECLARATION PAGE 18 NAMED ASSURED: TYPE: PARENT COMPANY GUARANTEE PER DECLARATION PAGE OCEAN MARINE The Company is a wholly owned subsidiary company of the North of England Protecting and Indemnity Association Limited ( "North "). There is a guarantee in place between North and the Company pursuant to which North guarantees to meet the liabilities of the Company in the unlikely event the Company is unable to discharge its own liabilities. The guarantee provides additional protection to the Company's policyholders as in the unlikely event the Company does not have sufficient resources to pay valid claims, the guarantee enables policyholders to require North to satisfy such valid claims. The validity of any policyholder claim will continue to be determined pursuant to your policy of insurance. The guarantee provided by North, does not, in any way, alter, amend, increase or reduce the scope or terms of your policy of insurance with the Company. Policyholders may request a copy of the guarantee from the company secretary (Alan Rowland) — alan.rowland @sunderlandmarine.com ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. THIS ENDORSEMENT IS ATTACHED TO AND MADE A PART OF POLICY NO: PER DECLARATION PAGE EFFECTIVE DATE OF THIS ENDORSEMENT: PER DECLARATION PAGE American Institute 87 B -46 S. R. & C. C. Endorsement (Hulls) (Revised) September 8, 1959 To be attached to and form a part of Policy No.: PER DECLARATION PAGE Of: SUNDERLAND MARINE INSURANCE COMPANY, LTD. Insuring PER DECLARATION PAGE In consideration of an additional premium, as provided below, this insurance is extended to cover additional risks, from and after THE EFFECTIVE DATE in accordance with the following clause:- This insurance also covers damage to or destruction of the property insured directly caused by strikers, locked out workmen, or persons taking part-in labor disturbances or riots or civil commotion's or caused by vandalism, sabotage, or malicious mischief, but excluding civil war, revolution, rebellion or insurrection, or civil strife rising therefrom, and warranted free from any claim for delay, detention or loss of use, and free from all loss, damage or expense caused by any weapon of war employing atomic or nuclear fission and /or fusion or other reaction or radioactive force or matter. Notwithstanding the exclusions in the F. C. & S. Clause in the within policy 'vandalism,' 'sabotage; and `malicious mischief,' as used herein, shall be construed to include willful or malicious physical injury to or destruction of the described property caused by acts committed by an agent of any Government, party or faction engaged in war, hostilities, or other warlike operations, provided such agent is acting secretly and not in connection with any operations of military or naval armed forces in the country where the described property is situated." Until further notice the Assured shall pay, for the additional protection afforded by the above clause, an additional premium of N/A percent. The Underwriters have the right nevertheless to change this rate at any time on 15 days written notice to the Assured; but the Assured shall have the option to cancel this endorsement as of the time when such change of rate would take effect, provided previous notice of such cancellation be given to the Underwriters. The rate may be changed as above notwithstanding strikes, labor troubles or civil commotion's, on board the vessel or elsewhere, may be threatened or actually exist either at the time when such notice is given or when it takes effect. All other terms and conditions remaining unchanged. NAMED ASSURED: TYPE: PERSONAL EFFECTS PER DECLARATION PAGE OCEAN MARINE In consideration of the premium charged, it is understood and agreed that this policy is extended to cover, without liability, "Personal Effects." "Personal Effects" means clothing and other personal property belonging to the Assured, passengers, or crew. Personal Effects do not include money, traveler's checks, securities, valuable papers or other documents. Personal Effects are insured while they are on board or being carried on to or off the vessel(s) insured. Coverage is provided only while the vessel is afloat and is subject to a limit of $1,000.00 any one accident, regardless of the number of persons involved or claims made, and a deductible of $100.00 ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. THIS ENDORSEMENT IS ATTACHED TO AND MADE A PART OF POLICY NO: PER DECLARATION PAGE EFFECTIVE DATE OF THIS ENDORSEMENT: PER DECLARATION PAGE COMMERCIAL TOWING AND ASSISTANCE NAMED ASSURED: TYPE: PER DECLARATION PAGE OCEAN MARINE It is understood and agreed in the event of an emergency situation where the assured or the vessel is not in imminent danger, underwriters will reimburse the assured for the reasonable cost incurred, not to exceed a total of $500.00, resulting from the following services to the insured vessel if help is not available and commercial assistance must be obtained: A. Towing to the nearest location where necessary repairs can be made. B. Delivery of gasoline, oil, parts or loaned battery (excluding the costs of these items themselves) or emergency labor, while away from safe harbor. It is agreed this coverage shall be deemed in excess above all other valid or collectible insurance and that the policy deductible does not apply to this coverage. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. THIS ENDORSEMENT IS ATTACHED TO AND MADE A PART OF POLICY NO: PER DECLARATION PAGE EFFECTIVE DATE OF THIS ENDORSEMENT: PER DECLARATION PAGE American Institute POLLUTION EXCLUSION CLAUSE (P &I) and BUY BACK ENDORSEMENT A (July 4, 1976) To be attached to and form a part of Policy No. PER DECLARATION PAGE of SUNDERLAND MARINE INSURANCE COMPANY LIMITED Insuring PER DECLARATION PAGE 25 This Policy will not indemnify the Assured against any sum (s) paid, nor insure against any liability, with respect to any loss, damage, cost, liability, expense, fine or penalty of any kind or nature whatsoever, and whether statutory or otherwise, incurred by or imposed on the Assured, directly or indirectly, in consequence of, or with respect to, the actual or potential discharge, emission, spillage or leakage upon or into the seas, waters, land or air, of oil, petroleum products, chemicals or other substances of any kind or nature whatsoever. IN CONSIDERATION OF AN ADDITIONAL PREMIUM OF $ INCLUDED THE ABOVE POLLUTION EXCLUSION CLAUSE (P &I) SHALL NOT APPLY TO SUMS PAID, OR LIABILITY OF THE ASSURED: 1) For loss of life of, or bodily injury to, or illness of, any person; or, 2) For loss, damage or expense to any cargo or property carried on board the insured Vessel (s); or, 3) For loss, damage or expense to any cargo or property on board any other vessel or contained or stored ashore unless such sums are paid, or liability is imposed, as a result of contact of such cargo or property with oil, petroleum products, chemicals or other substances of any kind or nature whatsoever arising in consequence of their sudden and accidental discharge, emission, spillage or leakage upon or into the seas, waters, land or air; or, 4) For contamination of any cargo or property resulting from the pumping of oil, petroleum products, chemicals or any other substances of any kind or nature whatsoever directly into any other vessel, or between tanks of the insured Vessel (s), or into storage tanks or receptacles ashore or elsewhere. PROVIDED that such sums, or such liability, are insured elsewhere under the terms and conditions of this Policy. All other terms and conditions, including any deductible provisions, of this Policy shall remain unchanged. NAMED ASSURED: TYPE: MEDICAL PAYMENTS PER DECLARATION PAGE OCEAN MARINE In consideration of the premium charged, this policy is extended to provide coverage without regard to liability for medical payments made by the Named Assured on account of loss of life, injury, or illness to passengers. Limit $10,000.00 per person or occurrence, but this does not increase the Protection & Indemnity limit. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. THIS ENDORSEMENT IS ATTACHED TO AND MADE A PART OF POLICY NO: PER DECLARATION PAGE EFFECTIVE DATE OF THIS ENDORSEMENT: PER DECLARATION PAGE SANCTION LIMITATION AND EXCLUSION NAMED ASSURED: TYPE: PER DECLARATION PAGE OCEAN MARINE No (re)insurer shall be deemed to provide cover and no ( re)insurer shall be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose that (re)insurer to any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom or United States of America. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. THIS ENDORSEMENT IS ATTACHED TO AND MADE A PART OF POLICY NO: PER DECLARATION PAGE EFFECTIVE DATE OF THIS ENDORSEMENT: PER DECLARATION PAGE EXCLUSION OF CERTIFIED ACTS OF TERRORISM This endorsement modifies insurance provided under the following: A. The following definition is added with respect to the provisions of this endorsement: "Certified act of terrorism" means an act that is certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism pursuant to the federal Terrorism Risk Insurance Act of 2002. The criteria contained in that Act for a "certified act of terrorism" include the following: i. The act resulted in aggregate losses in excess of $5 million: and ii. The act is a violent act or an act that is dangerous to human life, property or infrastructure and is committed by an individual or individuals acting on behalf of any foreign person or foreign interest, as part of an effort to coerce the civilian population of the United States or to influence the policy of affect the conduct of the United States Government by coercion. B. The following exclusion is added: Certified Act of Terrorism Exclusion We will not pay for loss or damage caused directly or indirectly by a "certified act of terrorism. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. C. Application of other Exclusions The terms and limitations of any terrorism exclusion, or the inapplicability or omission of a terrorism exclusion, do not serve to create coverage for any loss which would otherwise be excluded under this Coverage part or Policy, such as losses excluded by the Nuclear Hazard Exclusion or the War and Military Action Exclusion. To be attached to, and form a part of Policy No.: PER DECLARATION PAGE Of SUNDERLAND MARINE INSURANCE COMPANY LIMITED Insuring: PER DECLARATION PAGE NAME OF ASSURED TYPE CLEARWATER FERRY SERVICES, INC. 2005 40' F /G /G C/V "MADDIE'S CROSSING" OCEAN MARINE EFFECTIVE AS OF SEPTEMBER 15TH 2015, AND IN CONSIDERATION OF AN ADDITIONAL PREMIUM OF $1,765.47 ($637.53 HULL AND MACHINERY, $1,115.68 PROTECTION & INDEMNITY, $12.26 MEDICAL PAYMENTS) IT IS HEREBY UNDERSTOOD AND AGREED THE FOLLOWING VESSEL IS ADDED TO POLICY HEREUNDER: 2015 35' ALUMINUM /GAS FERRY BOAT "HAILEY'S CROSSING" COVERAGES PER ATTACHED SCHEDULE OF VESSELS. NAVIGATION LIMITS: WARRANTED CONFINED TO THE INLAND AND COASTAL NAVIGABLE WATERS OF FLORIDA, NOT TO EXCEED FIVE (5) MILES OFFSHORE AND EXCLUDING ABSOLUTELY THE TERRITORIAL WATERS OF CUBA. Surplus Lines Agent: Brian A. Raby License No.: A213865 Address: 5 Windsormere Way; Ste 100 Oviedo, Florida 32765 Producing Agent: Casey Insurance Group, Inc. Address: 151 North Nob Hill Rd. #269 Plantation, FL 33324 To Be Reported: 3RD Qtr 2015 Premium: $1,765.47 Tax: EXEMPT Florida Policy Fee: N/A FS LSO Service $3.09 ALL OTHER TERMS AND CONDITIONS REMIAN UNCHANGED. ENDORSEMENT NUMBER 2 ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED THIS ENDORSEMENT IS ATTACHED TO AND MADE PART OF POLICY NO. MY0864 EFFECTIVE DATE OF THIS ENDORSMENT SEPTEMBER 15TH 2015 SUNDERLAND MARINE INS. CO. LTD. Clearwater Ferry Services, Inc. Vessel # 1 "Maddie's Crossing" 2005 40' F /G /G Charter Vessel Coverage Hull & Machinery ACV Engine Clause Limit Protection & Indemnity Covering third pary liability, two (2) fulltime crewmen and a maximum of forty (40) passengers Medical Payments Personal Effects $70,000.00 $ 500,000.00 $10,000.00 $1,000.00 Deductible $1,400.00 $500.00 N/A 00.01 Premium $1,225.00 $2,540.00 $25.00 Included; Total Vessel Premium: Vessel # 2 "Hailey's Crossing" 2015 35' A/G Charter Vessel Added Effective as of September 15th 2015 $3,790.00 Coverage Limit Deductible Premium (Pro -Rata) Hull & Machinery ACV Engine Clause Protection & Indemnity Covering third pary liability, two (2) fulltime crewmen and a maximum of twenty -eight (28) passengers Medical Payments Personal Effects $85,000.00 $500,000.00 $10,000.00 51.0(10 .00 $1,700.00 $500.00 N/A 100.00 $637.53 $1,115.68 $12.26 ncluded Total Vessel Premium: $1,765.47