TO THE MEMBERS

Dear Sirs

WAR RISKS P&I COVER

At their meeting on 28th January, 2002, the Directors resolved to provide special war risks P&I cover to the Members in accordance with the resolution set out overleaf.

Subject to the terms and conditions of the resolution, this special cover will respond to claims under Rule 2 which would otherwise be excluded by the war risks exclusion in Rule 5E (after the amendment which is proposed at the Special General Meeting on 14th February, 2002).

The limit of this special cover has been increased to US $200 million but, as before, the cover will only respond to claims in excess of the proper value of the entered ship, as defined in Rule 5D, or whatever sum is recoverable from war risks underwriters, whichever is the greater. For ships with a proper value in excess of US $100 million, the proper value will be deemed not to exceed US $100 million for the purposes of this resolution.

The Directors have retained a discretion to pay claims which would fall within the excess.

Yours faithfully

THOMAS MILLER (BERMUDA) LTD.