Special General Meeting - Proposed Amendment to War Risks Exclusion

Outline

02/03 and 06/03). The Board will consider, at its next meeting on 26th January, 2004 the terms on which this special cover may be offered from 20th February, 2004.nigel.carden@thomasmiller.com or telephone +44 20 7204 2147 with any questions regarding this circular.

• An SGM will be held on 26th January 2004 in Cape Town, South Africa.
• The SGM is to consider amending the Club's war risks exclusion in respect of pollution and passenger liabilities.
• The papers for this meeting are enclosed.

Action

• Members should ensure their completed proxy form is faxed or sent to the Secretary 12 hours before the meeting.

TO THE MEMBERS

Dear Sirs

Please find enclosed papers for a Special General Meeting to be held on 26th January, 2004, for the purpose of considering an additional Rule amendment.

The effect of the amendment, if approved, will be to ensure that the Association is in a position to meet its obligations in respect of pollution liabilities under Civil Liability Convention (CLC) certificates and in respect of passenger liabilities under guarantees provided to the US Federal Maritime Commission (FMC), even where such liabilities arise as a result of war risks (including terrorism).

It is intended that a corresponding amendment be made to the Pooling Agreement.

A Proxy Form and Schedule of Votes are enclosed in respect of the resolution contained in the Notice of Meeting. Please note that the completed form must reach the Secretary by mail or fax at the latest 12 hours before the Meeting.

Members will recall that the Association provides a special war risks P&I cover in relation to risks otherwise excluded by Rule 5E. The present terms of this cover were the subject of the Association's circulars dated February and April 2003 (ref.

Yours faithfully

THOMAS MILLER (BERMUDA) LTD.Contact

• Members are requested to contact Nigel Carden on