IMI Cargo Terms & Conditions

Pending approval from IMI Cargo, your shipment will be insured as per the information provided in your request for insurance and the details shown on your Original Certificate of Insurance and its underlying Policy. Please read your policy and review your Original Certificate of Insurance for accuracy.

Your shipment is not insured until you have received confirmation from IMI Cargo, including Policy Number and Original Certificate Number.

If your order cannot be processed or if coverage must be amended or cancelled, IMI Cargo will not process your payment or will issue you a refund for any premium paid. Coverage cannot be amended or cancelled after 2 days following the shipment date indicated on your Original Certificate of Insurance. Please contact IMI Cargo if you have any questions.

Please remember that insurance coverage cannot be bound, amended or cancelled by leaving an electronic message or voice mail message. You cannot bind, alter or cancel coverage without speaking to an authorized representative of IMI Cargo.

Tokio Marine Policy Terms & Conditions

PLEASE READ YOUR POLICY.

Any known or reported loss or damage should be reported immediately to the nearest Company Representative, Settling Agent or Claim Agent.

When cargo is received from the carrier in a damaged condition, in order to save yourselves or your underwriters any rights which you have against the carrier, it is necessary for you to file notice of claim in writing against the carrier before taking delivery of the goods. Subsequently, as soon as the actual loss or damage is determined from an examination of the goods, a claim in writing should be filed promptly with the carrier for the actual damage. Filing a claim against the carrier will not diminish your rights under your insurance policy.

When sending claim papers for collection of any loss under this Policy, be sure to attach thereto a copy of your letter to the carrier and the latter’s reply, if received. Do not withhold the reporting of a claim if the carrier’s reply is delayed.

REPORTING CLAIMS

IMPORTANT

Any loss or damage must be promptly reported to one of the below listed offices which will arrange on your behalf for survey and will adjust the claim in accordance with the terms and conditions of the policy, or other acceptable evidence of insurance. File preliminary claim immediately in writing against all Carriers and other parties in whose custody the loss or damage may have occurred.

NOTE FAILURE TO PRESERVE ALL RIGHTS AGAINST PARTIES RESPONSIBLE FOR LOSS OR DAMAGE WILL PREJUDICE YOUR CLAIM AGAINST THESE ASSURERS.

Upon taking delivery of a shipment which is believed to be damaged or short weight, also request immediate survey by Carrier, and on receipting, note upon the receipt the exact condition of shipment as received. If Carrier will not deliver unless clean receipt is given, file immediate written protest with the Carrier, describing condition of shipment as received and holding Carrier liable for any loss that may be disclosed by survey. Container and contents should be preserved in condition received until survey completed, unless further damage would result. To facilitate adjustment of loss, promptly collect at least the following documents:

• Survey Report

• “Certificate of Condition" (when issued by port or terminal authority or Carrier)

• Copy of written claim upon Carriers, and their reply (when available)

• Carriers written confirmation of any non-delivery

• Original and Duplicate Insurance Policy

• Ocean Bills of Lading

• Transshipment Bills of Lading

• Air, Rail or other inland Freight Waybills

• Shippers Invoice with packing specifications or weight note attached

• Estimate of damages or repair costs

Additional documentation may be required. If claim is presented abroad, exchange will be the rate current on date of settlement. Claim, if any, under this policy may be collected upon its presentation, duly endorsed, together with supporting documentation, through the offices of the following settling agents (survey agent only): If loss or damage is discovered at a port which is not near to an office listed above, then consignee should apply for survey to the Correspondent of THE AMERICAN INSTITUTE OF MARINE UNDERWRITERS.

In the event no Correspondent of the American Institute of Marine Underwriters is available, apply for survey to the Lloyd's Agent, if nearer to such port or place. Then send survey report and documents for adjustment to the nearest office in your country, or, if none be listed, to TM Claims Service, Inc. 230 Park Ave., New York, N.Y. Survey fee must be paid by applicant, but may be included in any valid claim against these Assurers.

The laws of some countries require that a stamp be affixed to this policy within the prescribed periods in order to permit the payment of claims in such countries. Stamps are payable at Claimant's expense.

IN THE UNITED STATES OF AMERICA PLEASE CONTACT:

TM CLAIMS SERVICE. INC.

230 PARK AVE.

NEW YORK, NY 10169

(212)-297-6600

TM CLAIMS SERVICE. INC.

800 E. Colorado Boulevard

Pasadena, CA 91101-7316

(626) 568-7600

U.S. TREASURY DEPARTMENT’S OFFICE OF FOREIGN ASSETS CONTROL (“OFAC”) NOTICE TO POLICY HOLDERS

No coverage is provided by this Policyholder Notice nor can it be construed to replace any provisions of your policy. You should read your policy and review your Declarations page for complete information on the coverages you are provided.

This Notice provides information concerning possible impact on your insurance coverage due to directives issued by OFAC. Please read this Notice carefully.

The Office of Foreign Assets Control (OFAC) administers and enforces sanctions policy, based on Presidential declarations of "national emergency". OFAC has identified and listed numerous:

• Foreign agents;

• Front organizations;

• Terrorists;

• Terrorist organizations; and

• Narcotics traffickers;

as "Specially Designated Nationals and Blocked Persons". This list can be located on the United States Treasury's web site: http://www.treas.gov/ofac

In accordance with OFAC regulations, if it is determined that you or any other insured, or any person or entity claiming the benefits of this insurance has violated U.S. sanctions law or is a Specially Designated National and Blocked Person, as identified by OFAC, this insurance will be considered a blocked or frozen contract and all provisions of this insurance are immediately subject to OFAC. When an insurance policy is considered to be such a blocked or frozen contract, no payments nor premium refunds may be made without authorization from OFAC. Other limitations on the premiums and payments also apply.

MARINE OPEN CARGO POLICY NO. TO6-0011071

OF THE

TOKIO MARINE AMERICA INSURANCE COMPANY

Tokio Marine America Insurance Company (hereinafter called the Company or Insurers). In considerations of premiums to be paid at the rates set forth in the schedules attached hereto, or as may be agreed upon from time to time, does insure against the perils, and subject to the terms, conditions and warranties, hereinafter set forth and any subsequent amendments thereof.

ASSURED

1. For accounts of whom it may concern.

LOSS PAYABLE

2. Loss, if any, payable to Assured or order of.

GOODS INSURED

3. To attach upon all shipments of lawful goods and merchandise consisting principally of (per Assured), properly packed for the intended shipment.

VALUATION

4. Goods and/or merchandise shall be valued and insured for the invoiced purchase price plus any prepaid and/or advanced and/or guaranteed freight if not included in the original purchase invoice plus 10% plus any import duty payable on arrival into the United States.

INSURABLE INTEREST

5. Notwithstanding the terms of sale or terms of purchase and provided that the named Assured is responsible for insuring the overseas voyage and that such shipment is insured by this Policy, the interest of the named Assured shall at all times be admitted during the entire transit as outlined in the Warehouse to Warehouse and Marine Extension Clause contained in this Policy. In the event a claim arises which would be covered under this clause, the Assured agrees to use all reasonable means to first recover the full amount of loss from the buyer or seller, or their insurers, in accordance with the terms of sale or purchase. In the event of payment of claim by the Company under this clause, the Assured agrees to subrogate to the Company all rights of recovery against the buyer or seller, or their insurers, or other responsible party and to provide all reasonable assistance to the Company in pursuing said rights.

ATTACHMENT & TERMINATION

6. To attach on each shipment made on and after as detailed on the declaration of insurance and to remain in force continuously thereafter until cancelled by either party giving the other 30 days written notice; such cancellation, however, not to affect any transit risk on which this insurance has attached prior to the effective date of said cancellation. Notwithstanding the above, coverage provide hereunder on any risks insured on a time basis or insured for coverage at any location shall terminate as of the effective date of the cancellation.

NON-PAYMENT OF PREMIUM

7. 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 care of the broker who negotiated this Policy.

GEOGRAPHICAL LIMITS

8. At and from ports and/or places in the World to all ports and/or places in the World excluding Russia, Iraq, Liberia, Libya, Jordan, CIS countries, El Salvador and Government regulated countries including US trade restrictions and/or sanctions under OFAC rules (as per Clause 7), excluding shipments originating in the United States and/or Canada with a final destination in the United States and/or Canada unless Domestic Transit Coverage is endorsed to the policy.

INTERNATIONAL ECONOMIC AND TRADE SANCTIONS

9. Notwithstanding anything to the contrary in this Policy, the following shall apply and shall be paramount to all other Policy terms and conditions:

If, by virtue of any law or regulation which is applicable to the Insurer at the inception of this Policy or any time thereafter, providing coverage under this Policy or paying any claim or other benefit under this Policy is or would be unlawful because it is prohibited or restricted by an embargo, sanction or other similar program as embodied in such law or regulation, the Insurer shall provide no coverage and have no liability whatsoever nor pay any claim or other benefit under this Policy, to the extent that such coverage or payment would be in violation of such law or regulation.

CONVEYANCES

10. By:

a. metal self-propelled vessels and connecting conveyances;

b. aircraft and connecting conveyances;

c. metal barge approved by this Company: (other than as a connecting conveyance);

d. mail or express;

e. Motor Trucks (owned or Common Carrier)

f. Railroad

VESSEL CLASSIFICATION CLAUSE

11. This insurance and the marine transit rates as agreed in the policy apply only to cargoes and/or interests carried by mechanically self-propelled vessels of steel construction classed with a Classification Society which is:

Member or Associate Member of the International Association of Classification Societies (IACS*), or

National Flag Society, but only where the vessel is engaged exclusively, in the coastal trading of that nation (including trading on an inter-island route within an archipelago of which that nation forms part).

Cargoes and/or interests carried by vessels not classed as above must be notified promptly to underwriters for rates and conditions to be agreed. Should a loss occur prior to such agreement being obtained cover may be provided but only if cover would have been available at a reasonable commercial market rate on reasonable commercial market terms.

Cargoes and/or interests carried by Qualifying Vessels (as defined above) which exceed the following age limits will be insured on the policy or open cover conditions subject to an additional premium to be agreed.

Bulk or combination carriers over 10 years of age, or

other vessels over 15 years of age unless they:

1. have been used for the carriage of general cargo on an established and regular pattern of trading between a range of specified ports, and do not exceed 25 years of age, or

2. were constructed as containerships, vehicle carriers or double-skin open-hatch gantry crane vessels (OHGCs) and have been continuously used as such on an established and regular pattern of trading between a range of specified ports, and do not exceed 30 years of age.

CRAFT CLAUSE (February 1949)

12. Including transit by craft and/or lighter to and from the vessel. Each craft and/or lighter to be deemed a separate insurance. The Assured are not to be prejudiced by any agreement exempting lightermen from liability.

LIMIT OF LIABILITY

13. This company shall not be liable for more than:

as detailed on the declaration of insurance

(a) in respect of goods on any one vessel or connecting conveyance, or in any one place at any one time, NOR in the following cases for more than:

(b) in respect of goods shipped ON DECK in any one vessel subject to ON DECK bills of lading;

(c) in respect of goods shipped by any one aircraft or connecting conveyances;

(d) in respect of goods in any one package via Federal Express, UPS or similar air express, parcel delivery service or courier service.

(e) in respect of goods in any one package transported by mail or parcel post;

(f) in respect of goods in any one approved metal barge or by any one tow (other than as a connecting conveyance).

(g) in respect of goods or any one land or air conveyance and in any one place at any one time Domestic Transit.

If the total value at risk exceeds the applicable limit of liability provided by this Policy, the Assured shall nevertheless report to this Company the full amount at risk and shall pay full premium thereon. The acceptance by this company of such reports and premium shall not alter or increase the limits of this Company’s liability, but this Company shall be liable for the full amount of loss up to but not exceeding the applicable limit of liability.

ACCUMULATION CLAUSE

14. Should there be an accumulation of interests beyond the limits expressed in this policy by reason of any interruption of transit beyond the control of the Assured, or by reason of any casualty arising during transit, or at a transshipping point or on a connecting vessel or conveyance, this policy shall attach for the full amount at risk (but in no event for more than twice the limit per vessel or other conveyance contained in the policy) provided written notice be given to this Company as soon as known to the Assured.

AVERAGE TERMS

15. as detailed on the declaration of insurance “insuring conditions”

(a) Except while subject to an ON DECK Bill of Lading:

Against all risks of physical loss or damage from any external cause irrespective of percentage, excluding the risks excepted by the F. C. & S. (Free of Capture and Seizure) Warranty and the S.R.C.C. (Strikes, Riots and Civil Commotions) Warranty incorporated herein.

(b) ON DECK and subject to an ON DECK Bill of Lading which must be so declared by the Assured: Free of Particular Average unless caused by the vessel being stranded, sunk, burnt, on fire, or in collision, but including jettison and/or washing overboard irrespective of percentage.

(c) Shipments by AIR, MAIL and PARCEL POST are insured against all risks of physical loss or damage from any external cause irrespective of percentage, excluding the risks excepted by the F.C. & S. (Free of Capture & Seizure) Warranty and the S.R.&C.C. (Strikes, Riots and Civil Commotions) Warranty incorporated in the conditions of the policy. Warranted by the Assured that all mail and parcel post shipments shall comply strictly with the Postal regulations of the countries to and from which they are mailed.

Note: Wherever the words “ship,” “vessel,” “seaworthiness,” “ship or vessel owner” appear in this Policy, they are deemed to include also the words “aircraft,” “airworthiness,” “aircraft owner.”

WAREHOUSE TO WAREHOUSE

16. This insurance attaches from the time the goods insured leave the Warehouse and/or Store at the place named in the Policy for the commencement of the transit and continues during the ordinary course of transit, including customary transshipment, if any, until the goods insured are discharged overside from the overseas vessel at the final port.

Thereafter the insurance continues while goods insured are in transit and/or awaiting transit until delivered to final warehouse at the destination named in the Policy or until the expiry of 15 days (or 30 days if the destination to which the goods are insured is outside the limits of the port), whichever occurs first. The time limits referred to are to be calculated from midnight of the day on which the discharge overside of the goods insured from the overseas vessel is completed. The goods insured are held covered at a premium to be arranged in the event of transshipment, if any, other than as above and/ in the event of delay in excess of the stated time limits arising from circumstances beyond the control of the Assured.

Note: It is necessary for the Assured to give prompt notice to these Assurers when they become aware of an event for which they are “held covered” under this Policy and the right to such coverage is dependent on compliance with this obligation.

MARINE EXTENSION CLAUSE (May 1952)

17. This policy is extended to cover all shipments which become at risk hereunder in accordance with the following clauses, which supersede and override Clause 16 (Warehouse to Warehouse) wherever they may be contradictory or at a variance.

This insurance attaches from the time the goods leave the warehouse for the commencement of the transit and continues until the goods are delivered the final warehouse at the original destination, or a substituted destination as provided in Clause III hereunder.

This insurance to cover the goods during:

(i) deviation, delay, forced discharge, re-shipment and transshipment

(ii) any other variation of the adventure arising from the exercise of a liberty granted to the shipowner or charterer under the contract of affreightment.

(iii) In the event of exercise of any liberty granted to the shipowner or charterer under the contract of affreightment whereby such contract is terminated at a port or place other than the originally insured destination, the insurance continues until the goods are sold and delivered at such port or place; or if the goods be not sold but are forwarded to the originally insured destination or to any other destination this insurance continues until the goods have arrived at final warehouse as provided in Clause I.

(iv) If while this insurance is still in force and before the expiry of fifteen (15) days from midnight of the day on which the discharge overside of the goods hereby insured from the overseas vessel at the final port of discharge is completed, the goods are resold (not being a sale within the terms of Clause III) and are to be forwarded to a destination other than that covered by this insurance, the goods are covered hereunder while deposited at such port of discharge until again in transit or until the expiry of the aforementioned fifteen (15) days, whichever shall occur first. If a sale is effected after the expiry of the aforementioned fifteen (15) days, while this insurance is still in force, the protection afforded hereunder shall cease as from the time of the sale.

(v) Held covered at a premium to be arranged in case of change of voyage or of any omission or error in the description of the interest, vessel or voyage.

(vi) This insurance shall in no case be deemed to cover loss, damage or expense proximately caused by delay or inherent vice or nature of the subject matter insured.

(vii) It is a condition of this insurance that there shall be no interruption or suspension of transit unless due to circumstance beyond the control of the Assured.

Nothing in the foregoing shall be construed as overruling the F.C. & S. Clause or as extending this insurance to cover any risk of war or consequences of hostilities.

NOTE -- It is necessary for the Assured to give prompt notice to these Assurers when they become aware of an event for which they are "held covered" under this Policy and the right to such coverage is dependent on compliance with the obligation.

SOUTH AMERICA CLAUSE

18. With respect to all shipments to South America and notwithstanding anything contained elsewhere herein to the contrary (particularly the Marine Extension Clauses) the insurance provided hereunder shall continue to cover for sixty (60) days (ninety (90) days in shipments via the Magdalena River) after completion of discharge of the overseas vessel at port of destination or until the goods are delivered to the final warehouse at destination, whichever may first occur, and shall then terminate.

The time limit referred to above to be reckoned from midnight of the day on which the discharge of the overseas vessel is completed.

PARAMOUNT WARRANTIES (April 1980)

19. THE FOLLOWING WARRANTIES SHALL BE PARAMOUNT AND SHALL NOT BE MODIFIED OR SUPERSEDED BY ANY OTHER PROVISION INCLUDED HEREIN OR STAMPED OR ENDORSED HEREON UNLESS SUCH OTHER PROVISION REFERS SPECIFICALLY TO THE RISKS EXCLUDED BY THESE WARRANTIES AND EXPRESSLY ASSUMES THE SAID RISKS:

(a) F.C. & S.

NOTWITHSTANDING ANYTHING HEREIN CONTAINED TO THE

CONTRARY THIS INSURANCE IS WARRANTED FREE FROM:

i. capture, seizure, arrest, restraint, detainment, confiscation, preemption, requisition or nationalization, and the consequences thereof or any attempt thereat, whether in time of peace or war and whether lawful or otherwise;

ii. all loss damage or expense, whether in time of peace or war caused by (i) any weapon of war employing atomic or nuclear fission and/or fusion or other reaction or radioactive force or matter or (ii) any mine or torpedo;

iii. all consequences of hostilities or warlike operations (whether there be a declaration of war or not), but this warranty shall not exclude collision or contact with aircraft, or with rockets or similar missiles (other than weapons of war) or with any fixed or floating object (other than a mine or torpedo), stranding, heavy weather, fire or explosion unless caused directly (and independently 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) by a hostile act by or against a belligerent power; and for the purpose of this warranty "power" includes any authority maintaining naval, military or air forces in association with a power;

iv. the consequences of civil war, revolution, rebellion, insurrection, or civil strife arising therefrom; or from the consequences of the imposition of martial law, military or usurped power; or piracy.

(b) S.R. & C.C.

Warranted free from loss, damage or expense caused by or resulting from:

i. strikes, lockouts, labor disturbances, riots, civil commotions or the acts of any person or persons taking part in any such occurrences or disorders,

ii. vandalism, sabotage or malicious act, which shall be deemed also to encompass the act or acts of one or more persons, whether or not agents of a sovereign power, carried out for political, terroristic or ideological purposes and whether any loss, damage or expense resulting therefrom is accidental or intentional.

(c) NUCLEAR EXCLUSION CLAUSE (December 1990)

THE FOLLOWING CLAUSE SHALL BE CONSIDERED PARAMOUNT AND SHALL NOT BE SUPERSEDED BY ANY OTHER PROVISION STAMPED OR ENDORSED HEREON:

Notwithstanding anything to the contrary herein, it is hereby understood and agreed that this policy shall not apply to any loss, damage, liability or expense due to or arising out of, whether directly or indirectly, nuclear reaction, radiation, or radioactive contamination, regardless of how it was caused. However, subject to all provisions of this policy, if this policy insures against fire,

then direct physical damage to the property insured within the United States, or any territory of the United States or Puerto Rico by fire directly caused by the above excluded perils, is insured, provided that the nuclear reaction, radiation or radioactive contamination was not caused, whether directly or indirectly, by way of the perils excluded by the F.C. & S. Warranty of this Policy.

Nothing in this endorsement shall be construed to cover any loss, damage, liability or expense caused by nuclear reaction, radiation or radioactive contamination arising directly or indirectly from the fire mentioned above.

(d) EXTENDED RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE With U.S.A. ENDORSEMENT (March 1, 2003)

This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith.

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 or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter

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

RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE (U.S.A. ENDORSEMENT)

This insurance is subject to the Extended Radioactive Contamination Exclusion Clause (March 1, 2003) provided that

if fire is an insured peril

and

where the subject matter insured or, in the case of a reinsurance, the subject matter insured by the original insurance, is within the U.S.A., its islands, onshore territories or possessions

and

a fire arises directly or indirectly from one or more of the causes detailed in Sub-Clauses (i), (ii) and (iv) of the Extended Radioactive Contamination Exclusion Clause March 1, 2003 any loss or damage arising directly from that fire shall, subject to the provisions of this insurance, be covered, EXCLUDING however any loss damage liability or expense caused by nuclear reaction, nuclear radiation, or radioactive contamination arising directly or indirectly from that fire.

(e) CHEMICAL, BIOLOGICAL, BIO-CHEMICAL, ELECTROMAGNETIC EXCLUSION CLAUSE (March 1, 2003)

This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith.

In no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed to or arising from an actual or threatened act involving a chemical, biological, bio-chemical or electromagnetic weapon, device, agent or material when used in an intentionally hostile manner.

OTHER EXCLUSIONS

20. Warranted free from loss, damage or expense caused by or resulting from:

i. inherent vice or nature of the subject matter insured.

ii. attributable to willful misconduct of the Assured.

iii. ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear.

iv. misappropriation, secretion, conversion, infidelity, theft or any dishonest act done by or at the instigation of the Assured, the consignee, shipper, supplier or other party at interest in the insured transit or their employees or agents (carriers for hire excepted).

v. loss of market or for loss, damage or deterioration arising from delay whether caused by a peril insured against or otherwise.

vi. arising from insolvency or financial default of the owners, managers, charterers, or operators of the vessel.

vii. resulting from insufficiency or unsuitability of packing or preparation of the insured property for the intended voyage. For the purposes of this clause, “packing” shall be deemed to include stowage into an overseas container but only when such stowage is carried out prior to the commencement of the insured voyage or when performed by the Assured or his representative.

SUE & LABOR

21. In case of any loss or misfortune, it shall be lawful and necessary for the Assured, his or their factors, servants and assignee, to sue, labor and travel for, in and about the defense, safeguard and recovery of the goods and merchandise, or any part thereof, without prejudice to this insurance; nor shall the acts of the Assured or this Company, in recovering, saving and preserving the property insured, in case of disaster, be considered a waiver or an acceptance of abandonment; to the charges whereof, this Company will contribute in proportion to the sum herein insured.

BOTH TO BLAME CLAUSE (February 1949)

22. Where goods are shipped under a Bill of Lading containing the so-called "Both to Blame Collision" Clause, these Assurers agree as to all losses covered by this insurance to indemnify the Assured for this Policy’s proportion of any amount (not exceeding the amount insured) which the Assured may be legally bound to pay to the shipowners under such clause. In the event that such liability is asserted the Assured agrees to notify these Assurers who shall have the right at their own cost and expense to defend the Assured against such claim.

FPA TERMS

23. Wherever FPA insuring conditions are specified for particular shipments under insuring conditions the following wording shall apply:

Warranted Free from Particular Average unless the vessel or craft be stranded, sunk or burnt, but notwithstanding this warranty this company is to pay any loss of or damage to the interest insured which may reasonably be attributed to fire, collision, or contact of the vessel and/or craft and/or conveyance with any external substance (ice included) other than water, or to discharge of cargo at port of distress.

Notwithstanding this average warranty, this company will also cover;

A. INCHMAREE CLAUSE

Physical loss or damage to the insured property caused by bursting of boilers, breakage of shafts or through any latent defect in the machinery, hull or appurtenances, or from faults or errors in the navigation and/or management of the vessel by the master, mariners, mates, engineers or pilots.

B. EXPLOSION CLAUSE

Risk of explosion, howsoever or wheresoever occurring during the currency of this insurance, unless excluded by Paramount warranties set forth in this policy.

C. SHORE CLAUSE

Where this insurance by its terms covers while on docks, wharves, or elsewhere on shore, and/or during land transportation, it shall include the risks of collision, derailment, overturning or other accident to the conveyance, fire, lightning, sprinkler leakage, cyclones, hurricanes, earthquakes, floods (meaning the rising of navigable waters), and/or collapse or subsidence of docks or wharves.

Note: FPA insuring condition shall also include the cover for the following contributions and /or expenses:

General Average and/or Salvage Charges (Clause 40), Warehousing & Forwarding Charges, Packages lost in loading (Clause 25), Sue & Labor charges (Clause 20), Both to Blame Clause (Clause 21).

MACHINERY CLAUSE (February 1949)

24. When the property insured under this Policy includes a machine consisting when complete for sale or use of several parts, then in case of loss or damage covered by this insurance to any part of such machine, these Assurers shall be liable only for the proportion of the insured value of the part lost or damaged, or at the Assureds option, for the cost and expense, including labor and forwarding charges, of replacing or repairing the lost or damaged part; but in no event shall these Assurers be liable for more than the insured value of the complete machine.

FUMIGATION CLAUSE

25. In the event of the vessel being fumigated and direct loss or damage to Assureds merchandise results therefrom, this Company agrees to indemnify the Assured for such loss or damage, and the Assured agrees to subrogate to this Company any recourse that they may have for recovery of such loss or damage from others.

WAREHOUSING & FORWARDING, PACKAGES LOST IN LOADING ETC. (February 1949)

26. Notwithstanding any average warranty contained herein, this Company agrees to pay any landing, warehousing, forwarding and special charges for which this policy in the absence of such warranty would be liable. Also to pay the insured value of any package or packages which may be totally lost in loading, transshipment or discharge.

DELIBERATE DAMAGE - POLLUTION HAZARD (July 1, 1974)

27. This insurance also covers, but only while the property insured is on board a waterborne conveyance, loss of or damage to said property directly caused by governmental authorities acting for the public welfare to prevent or mitigate a pollution hazard or threat thereof, provided that the accident or occurrence creating the situation which required such governmental action would have resulted in a recoverable claim under the Policy (subject to all of its terms, conditions and warranties) if the property insured would have sustained physical loss or damage as a direct result of such accident or occurrence.

This clause shall not increase the Limits of Liability provided for elsewhere herein.

DELIBERATE DAMAGE – CUSTOMS

28. This insurance also covers, notwithstanding the F.C. & S. warranty specified in this policy, and subject to all other insuring terms, conditions and warranties set forth elsewhere in this policy, physical loss of and damage to the shipment arising out of the performance of inspection duties by customs service agents or other duty constituted governmental agencies.

This clause shall not increase the Limits of Liability provided for elsewhere herein.

IMPORT DUTY

29. This insurance also covers, subject to Policy terms of average, the risk of partial loss by reason of perils insured against on the duties imposed on goods imported into the United States or Canada and insured hereunder, it being understood and agreed, however, that when the risk upon the goods continues beyond the time of landing from the overseas vessel, the increased value, consequent upon the payment of such duties, shall attach as an additional insurance upon the goods from the time such duty is paid or becomes due, to the extent of the amounts thereof actually paid or payable.

Any limit of liability expressed in the Policy shall be applied separately to such increased value.

The Assured warrants that on all risks insured hereunder a separate amount shall be reported sufficient to cover the said duty, upon which the rate of premium shall be a named percentage of the merchandise rate.

The Assured will, in all cases, use reasonable efforts to obtain abatement or refund of duties paid or reclaimed in respect of goods lost, damaged or destroyed. It is further agreed that the Assured shall, when this Company so elects, surrender the merchandise to the Customs authorities and recover duties thereon as provided by law, in which event claim under this Policy shall be only for a total loss of the merchandise so surrendered and expenses.

This insurance on duty and/or increased value shall terminate at the end of the import movement covered under this Policy (including the Warehouse to Warehouse and Marine Extension Clauses if incorporated herein), but nothing contained in these clauses shall alter or affect any coverage granted elsewhere in the Policy during the shortage or transit subsequent thereto.

CONTINGENT COVERAGE

30. This policy is extended to cover shipments sold on terms whereby the Assured is not obliged to furnish ocean marine insurance but only as follows:

1. This Company will collect the loss or damage covered by the terms, conditions and warranties set forth in this policy, but only for which the payment has been refused or withheld by the consignee. This Company will advance to the Assured the amount of the loss as a loan without interest, within the limit per vessel or other conveyance contained in the policy, however not to exceed $1,000,000. This shall be repayable upon remittance of the purchase price by the consignee or to the extent of any recovery received by the Assured from insurance effected by the consignee or otherwise.

2. This coverage is a special agreement between the Assured and this Company and the Assured agrees that no knowledge of this coverage shall be made available to buyer or consignee in any invoice, Certificate of Insurance, or otherwise.

3. The Assured shall report to the Company shipments covered by this provision and pay premium thereon at the rate of 33% at the applicable rates.

FOB/FAS

31. It is hereby understood and agreed that this policy is extended to cover, subject to its terms and conditions, goods and/or merchandise sold on F.O.B., F.A.S., or similar terms whereby marine insurance is effected by the buyer. This insurance attaches from commencement of transit at the Assured's plant or other place of shipment and terminates when the Assured's interest ceases but not later than the time the goods and/or merchandise are laden on board the overseas vessel, or at time of transfer of title, whichever shall first occur.

This insurance includes any lighterage, and for not exceeding thirty days while held at terminals, on wharves, piers, docks, quays, storage barges, boats and lighters while awaiting loading on board the overseas vessel or held covered at an additional premium if required, provided prompt notice is given the Company.

This insurance, however, is not to attach as respects any goods and/or merchandise if, at the time of loss or damage, there is any other insurance which would attach if the coverage provided under the endorsement had not been effected, except that this insurance shall apply only as excess and in no event as contributing insurance and then only after all other insurance has been exhausted. Nevertheless, any direct loss sustained by the Assured otherwise recoverable hereunder shall be advanced as a loan without interest repayable out of any recovery the Assured may receive out of such other insurance.

The Assured agrees to report to this Company at the end of each month the amount of all shipments made by rail and truck, covered hereby, and pay premium thereon at the following rates; 33% of standard rates.

CONSOLIDATION AND CONTAINERIZATION CLAUSE

32. It is hereby understood and agreed that notwithstanding anything contained elsewhere to the contrary (particularly the Warehouse to Warehouse and Marine Extension Clauses), and subject to the Limit of Liability herein, the insurance provided hereunder shall cover while on premises of freight forwarders, consolidators, truckers, warehousemen or others for the purpose of consolidation, deconsolidation, containerization, decontainerization, distribution or redistribution anywhere in the U.S. prior to loading on overseas vessel or at any transshipment point for a period not exceeding thirty (30) days after the arrival at such premises. Held covered in the event of a delay in excess of the above time limit at additional premium. The Assured agrees to report all held “covered” exposures and pay premium thereon at this Company’s rate.

RETURN SHIPMENTS CLAUSE

33. In the event of refusal or inability of the Assured or other consignee to accept delivery of goods or merchandise insured hereunder, this insurance is extended to cover such shipments, subject to the original insured value and insured conditions, during delay and/or return or until otherwise disposed of. The Assured agrees to report the facts of such situations as soon as practicable after they have knowledge of them and pay premium, if required at rates to be agreed.

FRAUDULENT BILL OF LADING CLAUSE

34. This policy covers physical loss or damage to merchandise insured under this Policy occasioned through the acceptance by the Assured and/or their agents or shippers of fraudulent Bills of Lading and/or shipping receipts and/or messenger receipt. Also loss or damage caused by the utilization of legitimate bills of lading and/or other shipping documents without the authorization and/or consent of the Assured or its agents.

In no event, however, does this Policy cover loss or damage arising from the shipper’s fraud or misstatement.

CONCEALED DAMAGE CLAUSE

35. Should delay occur in the opening of any package after the arrival of goods at the final destination, or should the goods be placed in bond or warehouse or any other place of deposit by the Assured or ultimate consignee prior to unpacking; if loss or damage is found when such packages are eventually opened, such loss shall be paid or adjusted by the Underwriters in the same manner as though the packages had been opened immediately upon their arrival, provided that:

1. it is no later than 60 days after arrival at final destination and which can be reasonably shown to have occurred prior to delivery into such places of deposit.

2. such loss or damage is recoverable under the terms of the policy.

Packages showing external damage are to be opened immediately upon arrival.

DEBRIS REMOVAL CLAUSE

36. This policy covers expenses incurred for the removal of all debris of the property covered hereunder which may be occasioned by loss caused by any of the perils insured except that the Assurers shall not be liable under this clause for more than 10% of the insured value of the Merchandise. This extension, however, shall not cover any liability or expense for which the Assured may be liable under any pollution statute.

SHORTAGE FROM INTERMODAL CONTAINERS CLAUSE

37. This Policy is also to pay shortage of contents from intermodal containers, meaning; (a) the difference between the number of packages as per shipper’s and/or supplier’s invoice and/or packing list which were loaded and (b) the count of packages removed taken by the Assured and/or their agent at time of container emptying, however, wherever and whenever occurring but excluding liability for any such loss which can be attributed to the forcible entry of the container which occurred following its delivery to store, warehouse or factory of the consignee at the destination to which the insured goods are insured unless covered elsewhere in this Policy.

It is understood and agreed that this is a private agreement between this Company and the Assured which the Assured will not mention in certificates of insurance, sales contracts, or otherwise.

CONTAINER DEMURRAGE CHARGES CLAUSE

38. This Policy shall cover demurrage charges and/or penalties assessed against, and paid by the Assured for late return of containers when said containers are retained by the Assured at the instruction of the Company for inspection by the Company’s Surveyor in the investigation of loss or damage recoverable under this Policy. The time period for which the Company shall be liable for said charges and/or penalties shall begin at the time the Company instructs the Assured to retain the containers for inspection and shall cease at the time the Company’s Surveyor instructs the Assured to return the containers.

It is understood and agreed that this is a private agreement between this Company and the Assured which the Assured will not mention in certificates of insurance, sales contracts, or otherwise.

CHANGE OF DESTINATION CLAUSE

39. In case of change of destination, as set forth in the original report of insurance, the goods insured are held covered at a premium, if any, to be agreed upon, the Assured agreeing to report promptly all such changes to the Assurer.

CONTROL OF DAMAGED GOODS CLAUSE

40. It is agreed that in the event of damage to goods insured under this policy, the Assured shall retain control of all damaged goods. The Assured, however, agrees whenever practicable to recondition and sell such goods after removal of all brands and trademarks, the Company being entitled to the proceeds from such sale. It is further agreed the Company will be consulted and allowed to inspect any damaged goods prior to any disposal or sales of such property.

Where it is agreed by both the Assured and the Company that the disposal or sale of such damaged goods is detrimental to the Assured’s interest (or which the Assured will be unable to sell or dispose of under their agreement with any trade associations) such damage will be treated as a constructive total loss, and the goods shall be destroyed in the presence of a representative of the Company.

EXPEDITING EXPENSE CLAUSE

41. Where, in the event of loss or damage recoverable hereunder, the Assured considers it necessary to forward replacements and/or replacement parts by airfreight or other means, this Company will pay the expediting cost in addition to the underlying claim. In no event shall the additional exceed 10% of the Insured value.

GENERAL AVERAGE (February 1949)

42. General Average and Salvage and Special Charges payable according to United States law and usage and/or as per Foreign Statement and/or as per York-Antwerp Rules (as prescribed in whole or in part) if in accordance with the Contract of Affreightment.

These Assurers agree to pay General Average, Salvage and Special Charges in full, irrespective of insured and contributory values, but in no event for more than the limits of liability found elsewhere in this policy.

CONTRIBUTORY CLAUSE

43. This Company shall be liable for only such proportion of General Average and Salvage Charges as the amount declared for insurance purposes (less Particular Average for which this Company is liable hereunder, if any) bears to the Contributory Value of the property hereby insured, but in no event to exceed the applicable Limit of Liability.

BILL OF LADING CLAUSE (February 1949)

44. The seaworthiness of the vessel as between the Assured and this Company is hereby admitted and the wrongful act or misconduct of the shipowner or his servants causing a loss is not to defeat the recovery by an innocent Assured if the loss in the absence of such wrongful act or misconduct would have been a loss recoverable on the Policy. The Assured are not to be prejudiced by the presence of the negligence clause and/or latent defect clause in the Bills of Lading and/or Charter Party.

PAYMENT OF LOSS

45. In the event of loss which may give rise to a claim under this Policy, prompt notice must be given to this Company. In case of loss, such loss to be paid in thirty days after proof of loss, proof of interest, and adjustment, thereof (the amount of the premium, if unpaid, and all sums due to the Company from the Assured when such loss becomes due being first deducted, and all sums coming due being first paid or secured to the satisfaction of this Company). Proof of loss to be authenticated by the Agent of this Company, if there be one where such proofs are taken; otherwise by a Correspondent of the American Institute of Marine Underwriters, if there be one where such proofs are taken, but if neither is represented, then by some other recognized Insurance Authority.

PARTIAL LOSS

46. In case of partial loss by perils insured against, the proportion of loss shall be determined by a separation of the damaged portion of the insured property from the sound and by an agreed estimate (by survey) of the percentage of damage of such portion; or if such agreement is not practicable, then by public sale of such damaged portion for the account of the owner of the property, and by comparison of the amount so realized with the sound market value, but in no event to exceed the applicable Limit of Liability.

CONSTRUCTIVE TOTAL LOSS (February 1949)

47. No recovery for a Constructive Total Loss shall be had hereunder unless the property insured is reasonably abandoned on account of its actual total loss appearing to be unavoidable, or because it cannot be preserved from actual total loss without an expenditure which would exceed its value when the expenditure had been incurred.

LABELS CLAUSE (February 1949)

48. In case of damage affecting labels, capsules or wrappers, this Company, if liable therefore under the terms of this Policy, shall not be liable for more than an amount sufficient to pay the cost of new labels, capsules or wrappers, and the cost of reconditioning the goods, but in no event shall this Company be liable for more than the insured value of the damaged merchandise.

BRAND CLAUSE

49. In case of damage to property bearing a brand, trademark or label, the sale of which in any way carries or implies a guarantee of the supplier or the Assured, the salvage value of such damaged property shall be determined after the removal in the customary manner of all brands, trademarks or labels. The cost of such removal to be borne by this Company.

PAIR AND SET

50. In the case of loss or damage recoverable hereunder to any one item of a pair or set of items such loss or damage shall be considered to effect the entire pair or set.

OTHER INSURANCE CLAUSE

51.

A. If an interest insured hereunder is covered by other insurance which attached prior to the coverage provided by this Policy, then this Company shall be liable only for the amount in excess of such prior insurance; the Assured to receive return premium charged hereunder equivalent to the cost of such prior insurance at the rate of this Company.

B. If an interest insured hereunder is covered by other insurance which attached subsequent to the coverage provided by this Policy then this Company shall nevertheless pay to the full extent of liability under this insurance without right to claim contribution from said subsequent insurance.

C. Other insurance upon the property of same attaching date as the coverage provided by this Policy shall be deemed simultaneous and this Company shall be liable only for a ratable contribution to the loss or damage as the amount insured hereunder bears to the aggregate of such simultaneous insurance, the Assured to receive return premium proportionate to such reduction in liability.

MISREPRESENTATION AND FRAUD

52. This Policy shall be void if the Assured has concealed or misrepresented any material fact or circumstance concerning this insurance or the subject thereof or in case of any fraud, attempted fraud or false swearing by the Assured touching any matter relating to this insurance or the subject thereof, whether before or after a loss.

CARRIER CLAUSE (February 1949)

53. Warranted that this insurance shall not inure, directly or indirectly, to the benefit of any carrier or bailee.

ASSIGNMENT & IMPAIRMENT OF RECOVERY

54. Warranted by the Assured that any assignment of this Policy or insurable interest therein or subrogation rights thereunder to any party, without consent of this Company, shall void the insurance so affected. It is further warranted that this Company shall not be bound to pay any loss which, by agreement or act of the Assured, prior or subsequent hereto, the right of recovery of the Assured for loss of or damage to any property insured hereunder, against any Carrier or Bailee, is released, impaired or lost.

Notwithstanding the foregoing and without prejudice to this insurance, the Assured may accept from carriers only such bill of lading, receipts or contracts of transportation containing a release or limitation of liability as to the value of the goods as are customarily issued by such carriers.

Further, in the event of loss or damage to property covered hereunder the Assured shall immediately make claim in writing against the carriers, baillees, or others involved.

MULTIPLE RECOVERY

55. No loss shall be paid hereunder if the Assured has collected the same from others.

DECLARATION OF RISK

56. It is warranted by Assured to declare to these Assurers all shipments coming within the terms and conditions of this Policy, on the date receiving advise thereof, or as soon thereafter as may be practicable, and to pay the premimiums thereon; willful failure to so declare or pay premiums when due shall (at the option of these Assurers) render this Policy null and void as from the date of such failure unless other premium reporting options are otherwise agreed to and endorsed hereon.

INSPECTION OF RECORDS

57. This Company, or its Representative, shall have the privilege at any time during business hours to inspect the records of the Assured as respects shipments coming within the terms of this Policy both during the term of this policy and for 12 months after its termination.

BROKERS

58.

(a) It is understood that for the purposes of this insurance the Assured's Broker of Record is: IMI cargo.

(b) It is a condition of this policy that the above brokers, or any substituted brokers, shall be deemed to be exclusively the agents of the Assured and not of this company in any and all matters related to, connected with, or affecting this insurance. Any notice given or mailed by or on behalf of this Company to the above brokers in connection with or affecting this insurance, or its cancellation, shall be deemed to have been delivered to the Assured.

NOTICE OF SUIT

59. No suit, action or proceeding against this Company for the recovery of any claim shall be sustainable unless commenced within one year from the date of the happening of the accident out of which the claim arises, provided that if such limitation is invalid by the laws of the state within which the policy is issued then such suit, action or proceeding shall be barred unless commenced within the shortest limit of time permitted by the laws of such state.

CHOICE OF LAW

60. It is agreed that this policy and its endorsement(s) is a contract of marine insurance protecting against marine risks and has been applied for, priced and underwritten as such, and the law applicable to any interpretation of this policy and the rights and obligations of the Company and assured hereunder shall be US federal common law or, in the absence of US federal maritime common law, the laws of the State of New York, irrespective of any principles of choice of law.

Any suit, actions or proceeding arising out of or based upon this policy shall be instituted in the United States District Court for the Southern District of New York or the United States District Court in the district in which this policy was issued. Each party to this contract submits to the exclusive jurisdiction of such courts in any suit, action or proceeding and waives any objection to venue of any suit, action or proceeding in the said court.

WAR RISK ONLY - Open Policy (Cargo) Policy No. WOC6-0011071

TOKIO MARINE AMERICA INSURANCE COMPANY

TOKIO MARINE MANAGEMENT, INC. 230 PARK AVENUE, NEW YORK, NY. 10169

Dated: 03/12/2014

THIS POLICY OF INSURANCE WITNESSETH, that in consideration of premiums as agreed to be paid, the Assurer does make insurance and cause Insurance Marketers, Inc to be insured, lost or not lost, for account of whom it may concern, against War Risks only, in accordance with the terms and conditions hereinafter set forth.

To apply to shipments made on or after 08/05/2013

This Company shall not be liable hereunder for more than $2,000,000 by any one vessel/aircraft.

In cases where the total value(s) at risk on any one vessel exceeds(s) the limit of liability as set forth in this Policy, the Assured agrees, nevertheless, to report to the Assurer full value(s) at risk and to pay premium thereon at the agreed rates. The Assured further agrees that acceptance of such reports and premium by the Assurer shall not serve to revoke or to overrule the limit of liability set forth in this policy; however, subject to the limit of liability, the Assurer in accepting these reports does agree to pay partial losses covered by this Policy without reduction by reason of any coinsurance which otherwise may have existed in the absence of this special agreement.

Subject to the provisions of Clause 4 of this Policy, should there be an accumulation of interests exceeding the above limit of liability by reason of any interruption of transit beyond the control of the Assured or by reason of any casualty, and/or after the interests have been discharged from the incoming overseas Vessel at an intermediate port or place for on-carriage from that or any other port or place by another overseas Vessel, and/or on the on-carrying overseas Vessel, this Policy shall attach for the full amount at risk (but in no event for more than twice the Policy limit which would be applicable to any one Vessel) provided written notice be given to this Assurer as soon as known to the Assured.

This Policy shall cover only those shipments which are insured against marine risks under Policy #TO6-0011071 of this Company, it being agreed that the description of such shipments, the valuations thereof, the voyage, the designation of the overseas Vessel (which shall be construed to include aircraft if included under the marine policy) on which the goods are to be carried and the ports and/or places of loading and discharge, as reported under the said Policy against marine risk, shall be deemed incorporated herein. Notwithstanding the foregoing, this policy shall not cover purely domestic shipments by air between points in the United States of America (excluding Alaska and Hawaii).

Any loss payable hereunder shall be payable in funds current in the United States, to the order of ASSURED thirty days after full proofs of loss and proofs of interest have been filed with the Assurer.

1.

(a) This insurance is only against the risks of capture, seizure, destruction or damage by men-of-war, piracy, takings at sea, arrests, restraints, detainments and other warlike operations and acts of kings, princes and peoples in prosecution of hostilities or in the application of sanctions under international agreements, whether before or after declaration of war and whether by a belligerent or otherwise, including factions engaged in civil war, revolution, rebellion or insurrection, or civil strife arising therefrom; the imposition of martial law, military or usurped power, and including the risks of aerial bombardment, floating or stationary mines and stray or derelict torpedoes. Warranted not to abandon (on any ground other than physical damage to ship or cargo) until after condemnation of the property insured.

(b) This insurance also covers, but only while the property insured is on board a waterborne conveyance, loss of or damage to said property directly caused by governmental authorities acting for the public welfare to prevent or mitigate a pollution hazard or threat thereof, provided that the accident or occurrence creating the situation which required such governmental action would have resulted in a recoverable claim under this Policy (subject to all of its terms, conditions and warranties) if the property insured would have sustained physical loss or damage as a direct result of such accident or occurrence.

2. Warranted free from any claim based upon loss of, or frustration of, the insured voyage or adventure caused by arrests, restraints or detainments.

3. This insurance does not cover any loss, damage or expense directly or indirectly arising from, contributed to, or caused by any of the following, whether due to a peril insured against or otherwise:

(a) Commandeering, preemption, requisition or nationalization by the government (defacto or otherwise) of the country to or from which the goods are insured.

(b) Seizure or destruction under quarantine, environmental or customs regulations.

(c) Delay, deterioration and/or loss of market.

(d) Nuclear reaction, radiation or radioactive contamination, regardless of how it was caused.

4.

(a) The insurance against the risks enumerated in clause 1, except the risks of floating or stationary mines and stray or derelict torpedoes, floating or submerged referred to in (b) below, shall not attach to the interest hereby insured or to any part thereof:

(i) prior to being on board an overseas Vessel (For the purpose of this Clause 4 an overseas Vessel shall be deemed to mean a Vessel carrying the interest from one port or place to another where such voyage involves a sea passage by that Vessel);

(ii) after being discharged overside from an overseas Vessel at the intended port or place of discharge;

or

after the expiry of 15 days from midnight of the day of arrival of the overseas Vessel at the intended port or place of discharge, whichever shall first occur;

(iii) after expiry of 15 days from midnight of the day of arrival of the overseas Vessel at an intermediate port or place to discharge the interest for on-carriage from that or any other port or place by another overseas Vessel, but shall reattach as the interest is loaded on the on-carrying overseas Vessel. During the said period of 15 days the insurance remains in force whether the interest is awaiting transit or in transit between the overseas Vessels.

(iv) For the purpose of this Clause 4 arrival at the intended port or place of discharge shall be deemed to mean that time when the overseas Vessel first berths, anchors, moors or is secured in an area subject to regulation by the authorities of such port or place.

(b) The insurance against the risks of floating or stationary mines and stray or derelict torpedoes, floating or submerged, attaches as the interest hereby insured is first loaded on a lighter, craft or vessel after leaving the warehouse at point of shipment in transit for the destination declared hereunder, and ceases to attach as the interest is finally landed from the vessel, craft or lighter prior to delivery to warehouses at such destination.

(c) If the contract of affreightment is terminated at a port or place other than the destination named therein such port or place shall be deemed the intended port or place of discharge for the purpose of this Clause 4.

(d) Shipments by mail, if covered by this Policy are insured continuously from the time of leaving the sender’s premises until delivered to the place of address.

(e) Shipments by air (other than by air mail) if covered by this Policy are insured subject to the same terms and conditions as shipments by overseas Vessel.

(f) It is a condition of this insurance that the Assured shall act with reasonable dispatch in all circumstances within their control.

(g) If anything contained in this Policy shall be inconsistent with this Clause 4 it shall to the extent of such inconsistency be null and void.

5. This insurance shall not be vitiated by deviation, overcarriage, change of voyage, or by any error or unintentional omission in the description of interest, vessel or voyage provided the same be communicated to the Assurer as soon as known to the Assured and an additional premium paid if required.

6. And in case of any loss or misfortune, it shall be lawful and necessary to and for the Assured his or their factors, servants and assigns, to sue, labor and travel for, in and about the defense, safeguard and recovery of the said goods, and merchandises, or any part thereof, without prejudice to this insurance; nor shall the acts of the Assured or Assurers, in recovering, saving and preserving the property insured, in case of disaster, be considered a waiver or an acceptance of an abandonment; and to the charges whereof, the said Assurers will contribute according to the rate and quantity of the sum hereby insured.

7. General Average and Savage Charges payable according to United States laws and usage and/or as per Foreign Statement and/or as per York-Antwerp Rules (as prescribed in whole or in part) if in accordance with the Contract of Affreightment.

8. It is agreed that the reports of shipments made under the Policy against marine risks mentioned above shall be deemed to be reports under this Policy also, and the Assured agrees to pay premiums on all shipments insured under this Policy at the war risk rates of the Assurer as fixed from time to time.

9. No claim shall be payable hereunder which arises from collision, contact with any fixed or floating object (other than a mine or torpedo), standing, heavy weather or fire unless caused directly (and independently 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) by a hostile act by or against a belligerent power; and for the purpose of this paragraph “power” includes any authority maintaining naval, military or air forces in association with a power.

10. No recovery for a Constructive Total Loss shall be had hereunder unless the property insured is reasonably abandoned on account of its actual total loss appearing to be unavoidable, or because if cannot be preserved from actual total loss without an expenditure which would exceed its value if the expenditure had been incurred.

11. It is agreed that this Policy is a separate and wholly independent contract and is not subject to any terms or conditions of the Policy against marine risks above mentioned (whether physically attached thereto or not) except as such terms or conditions shall have been expressly incorporated herein by reference.

12. This insurance may be canceled by either party upon forty-eight hours written, telegraphic or telefaxed notice to the other party, but such cancellation shall not affect any shipment on which this insurance has attached under the terms of Clause 4 hereof prior to the effective date of such notice. Shipments on which this insurance has not so attached but for which, prior to the effective date of such notice, bills of lading have been issued and (in the case of exports) Certificates or special policies have been issued and negotiated, shall be covered from the time of loading on the overseas Vessel, as provided in Clause 4, at the rates of the Assurer, provided that, prior to said effective date, such shipments were at the risk of the Assured and were covered under the said Policy against marine risks.

In the event of loss which may give rise to a claim under this Policy, prompt notice shall be given to this Company.

WAR POLICY NO. WOC 6-0011063

The Policy Provisions with the Information or Declarations Page and Endorsements, if any, issued to form a part thereof, complete this policy.

ENDORSEMENTS TO THIS POLICY

ENDORSEMENT No..................1...........................

Endorsement for OPEN POLICY (Cargo)

Strikes, Riots & Civil Commotions (Form 12)

American Institute of Marine Underwriters

(January 1, 2008)

S.R. & C.C. ENDORSEMENT (Form No. 12)

THIS INSURANCE ALSO COVERS:

(1) Physical loss of or damage to property insured directly caused by strikers, locked-out workmen, or persons taking part in labor disturbances or riots or civil commotions

(2) Physical loss of or damage to the property insured directly caused by vandalism, sabotage or malicious acts; and,

(3) Physical loss of or damage to the property insured directly caused by the act or acts of one or more persons whether or not agents of a sovereign power, carried out for political, terroristic or ideological purposes and whether any loss, damage or expense resulting therefrom is accidental or intentional: PROVIDED that any claim to be recoverable under this sub-section (3) be not excluded by the Free of Capture & Seizure Warranty, Extended Radioactive Contamination Exclusion Clause (Extended RACE Clause) or Chemical, Biological, Bio-Chemical and Electromagnetic Exclusion Clause (CBE Clause) in the Policy to which this endorsement is attached. Notwithstanding the foregoing, coverage under this subsection (3) is conditional upon the property insured being in the ordinary course of transit and, in any event, shall terminate:

(a) As per the Warehouse to Warehouse Clause, Marine Extension Clause, 60 Day South American Clause and any other clauses relating to duration of transit contained in or endorsed onto the Policy; or,

(b) on delivery to the consignee’s or other final warehouse or place of storage at the destination named herein; or,

(c) on delivery to any warehouse or place of storage whether prior to or at the destination named herein, which the Assured elects to use either for storage other than in the ordinary course of transit or for allocation or distribution; or,

(d) in respect of marine transit, on the expiry of 60 days after completion of discharge overside of the property insured from the vessel at the port of discharge; or,

(e) in respect of air transits, on the expiry of 30 days after unloading the property insured from the aircraft at the place of discharge: whichever shall first occur.

While the property insured is at risk under the terms and conditions of this insurance within the United States of America, the Commonwealth of Puerto Rico, the U.S. Virgin Islands and Canada, this insurance is extended to cover physical loss of or damage to the property insured directly 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 operation of military or naval armed forces in the country where the described property is situated.

Nothing in this endorsement shall be construed to cover any loss, damage or expense directly or indirectly arising from, contributed to or caused by any of the following, whether due to a peril insured against or otherwise:

(a) change in temperature or humidity;

(b) the absence, shortage, or withholding of power, fuel, or labor of any description whatsoever during any strike, lockout, labor disturbance, riot or civil commotion;

(c) loss of market or loss, damage or deterioration arising from delay;

(d) hostilities, warlike operations, civil war, revolution, rebellion or insurrection or civil strife arising therefrom, except to the limited extent that the acts or certain agents acting secretly have been expressly covered above; or,

(e) nuclear reaction, radiation or radioactive contamination as per Extended RACE Clause

(f) chemical, biological, bio-chemical or electromagnetic weapon, devices, agent or material, as per CBE Clause.

The Assured agrees to report all shipments attaching under this cover and to pay premiums therefore at the rates established by the Assurer from time to time.

This endorsement may be cancelled by either party upon forty-eight hours written, telegraph, telefaxed or electronic notice to the other party, but such cancellation shall not affect any risks which have already attached hereunder.

Effective with respect to shipment made on or after 08/05/2013

All other terms and conditions remaining unchanged.

ENDORSEMENT No..................2...........................

This endorsement forms a part of the policy to which it is attached and is effective on the inception date of the policy unless otherwise stated herein.

DOMESTIC TRANSIT ENDORSEMENT

1. PROPERTY INSURED

This policy is hereby extended to cover property owned by the Insured, and similar property of others for which the Insured is liable or is under obligation to insure, and for which the Insured may be liable in the event of loss:

A. While in Domestic Transit - Property in the ordinary course of transit by land or air within the continental limits of the United States and Canada.

2. PERILS, TERMS OF AVERAGE AND EXCLUSIONS

as detailed on the declaration of insurance

A. Perils Excluded

This extension does not insure:

a. Loss or damage due to wear and tear, inherent vice, latent defect, or gradual deterioration.

b. Loss or damage due to delay, loss of market, loss of use, interruption of business or consequential loss of any nature.

c. Loss or damage or expenses resulting from misappropriation, secretion, conversion, infidelity or any dishonest act done by or at the instigation of the insured or by the Insured or their employees.

d. Water damage to property stored in the open.

e. Accounts, bills deeds, evidences of debt notes, securities, currency, money, coins, stamps, jewelry, precious stones, fine arts, bullion, specie or other metals.

B. Deductibles

as detailed on the declaration of insurance

3. VALUATION

as detailed on the declaration of insurance

4. RECORD OF VALUES

It is a condition of this insurance that the insured keep records of total value of all property at risk covered hereunder in transit the last day of each calendar month.

5. REPORTS AND PREMIUM

as detailed on the declaration of insurance

6. RETURNED DOMESTIC SHIPMENTS

This insurance subject to all its terms and conditions is extended to cover property in domestic transit returned to the Insured for any reason providing the original shipment was insured hereunder.

7. LIMITS OF LIABILITY

A. The liability of the Company resulting from any loss, disaster or casualty is limited to the following amounts for property not in storage: as detailed on the declaration of insurance

B. It is understood and agreed that should the total value of shipped merchandise at risk under this Endorsement in any land conveyance or airplane exceed the respective limits herein specified, the Assured shall, nevertheless report to this Company in the manner elsewhere provided, the total value of such merchandise and shall pay premium at the agreed rates.

In consideration of the above provision this Company hereby waives any benefits which it would derive from the application of the principles of Coinsurance and agrees to hold itself liable for the full amount of any loss, is arising from a peril insured against, up to, but not exceeding the limits herein, or which may be subsequently provided, irrespective of the total value of the merchandise at risk.

8. FOB SHIPMENTS

As respects shipments sold by the Insured FOB at points of shipments, it is agreed that, if by reason of loss or damage from a peril insured against and the Insured cannot collect from the consignee or other party because or refusal or inability to pay, this Company shall advance to the Insured as a loan the amount of loss as provided herein, such loss to be repayable upon remittance of the purchase price by the buyer or to the extent of any recovery received by the Insured from Insurance provided by the buyers or otherwise.

This insured is to be for the sole account of the Insured and in no event is it to inure to the benefit of buyers, consignees or any other party.

The Insured shall preserve all their rights against the buyer or other parties and, upon receipt of payment from the Company, shall subrogate to this Company all such rights and shall give all assistance, other than pecuniary, in enforcing them.

9. CANCELLATION

In the event of cancellation of the policy to which this Endorsement is attached, insurance provided by this Endorsement shall cease simultaneously with the effective date of cancellation of the policy, but such cancellation of the policy shall not affect any transit risk on which this insurance has attached prior to the effective date of such cancellation.

All other terms and conditions of this policy remained unchanged.

ENDORSEMENT No..................3...........................

This endorsement forms a part of the policy to which it is attached and is effective on the inception date of the policy unless otherwise stated herein. (The following information is required only when this endorsement is issued subsequent to preparation of policy.)

TRADE DISRUPTION ENDORSEMENT

1. Insuring Clause

Subject to the terms, conditions, definitions, exclusions, limits of liability and warranties contained herein, the Insurer agrees to indemnify the Assured for its provable and ascertainable Net Loss resulting from the occurrence of an Insured Event hereunder.

2. Insured Interests

2.1. The Assured’s Net Profit and/or

2.2. Extra Costs and Expenses

as hereinafter defined.

3. DEFINITIONS

3.1. NET LOSS means and will be assessed as;

3.1.1. The Assured’s NET PROFIT being the ascertainable Net Profit lost during the Period of Indemnity relating to that proportion of the Assured’s production which is lost or delayed by the occurrence of an Insured Event provided such production was connected to a contract at the time of the occurrence of an Insured Event, and also including Net Profit relating to lost sales under any contracts which were in force at the time of such occurrence but which are subsequently cancelled by the buyer(s) as a result of such occurrence but in any event not exceeding 10% of the sales price of the goods, and/or

3.1.2. EXTRA COSTS AND EXPENSES which mean any extra costs or expenses which relate to the purchase, handling, storage, transportation or sale of the Goods and/or of any replacement goods and which are reasonably incurred by the Assured within the Period of Indemnity

3.1.2.1. in an effort to avoid or minimize any loss under clause 3.1.1., including any legal expenses so incurred provided that the prior consent of Insurers hereon to such legal expenses has been obtained, and/or

3.1.2.2. following the occurrence of an Insured Event, to ensure the timely delivery of any Goods, provided that the Assured shall make every effort to minimize the cost of so doing.

3.2. PERIOD OF INDEMNITY means the 60 consecutive days commencing with the date of occurrence of an Insured Event and not limited by the date of expiration of this policy.

3.3. GOODS means the declared goods on this policy and on which this insurance has attached.

3.4. INTENDED DELIVERY ROUTE means the route, commencing from the point of departure and terminating at the Delivery Point, and along which the freight forwarder or the Assured has arranged to send the Goods and/or conveyance, or the route along which it was intending to send the Goods and/or conveyance, or in the absence of any specific arrangements and/or plans the route along which it would be customary and reasonable for the Goods and/or the conveyance to be sent.

3.5. INSURED EVENT means the occurrence beyond the control of the Assured and within the Policy Period of any of the following events along the Intended Delivery Route which results in the arrival of the Goods thereat being delayed for a period in excess of 21 consecutive days;

3.5.1. declaration of General Average in respect of the shipment by overseas vessel;

3.5.2. fire, lightning or explosion;

3.5.3. storm, tempest, flood, snow, or ice;

3.5.4. earthquake, or volcanic eruption;

3.5.5. aircraft impact;

3.5.6. partial or total closure of any road or railway line by or under the lawful order of the police, local or national authority or government, or the electricity, water or gas supply authority where less than twenty-four hours advance notice of such closure is given by the relevant authority, and other than in connection with any attempt to, and/or failure to, maintain law and order;

3.5.7. Closure by the appropriate authorities or unintentional physical blockage of any berth, port, channel, canal or waterway, which the overseas vessel is scheduled to use at the time of such occurrence, but only where such closure or physical blockage is as a result of

3.5.7.1. physical loss, physical damage, or breakdown of a vessel (other than the overseas carrying vessel) which would be recoverable under Institute Time Clauses - Hulls (1.11.95) and/or

3.5.7.2. physical damage to any port, canal or waterway facilities (other than cargo handling equipment) required to allow the passage or berthing of vessels caused by impact of aircraft or vessel (other than the overseas vessel), storm, fire, lightning, explosion and/or

3.5.7.3. unintentional spillage or release of oil or hazardous substances being handled as cargo within the confines of the port or being transported by vessel through the canal, channel or waterway;

always provided that such closure is affected within the first 72 hours of the commencement of such loss, damage or breakdown, spillage or release from either the vessel, shore tank, warehouse or silo or point between. In the event of a vessel being involved in a marine casualty which results in a subsequent spillage or release such 72 hours to commence from the time of the initial casualty.

In this Clause 3.5.7.3 unintentional refers to the parties involved in the physical blockage, spillage or release and not to the assured. Unintentional spillage or release must be established as having commenced at a specific time and date during the policy period);

3.5.8. delayed or non-arrival of the overseas carrying vessel at the port of loading and/or destination due to physical loss of, physical damage to or breakdown of the overseas vessel covered under Institute Time Clauses - Hulls (1.11.95) and/or Institute War and Strikes Clauses Hulls - Time (1.11.95)

3.5.9. foulberthing at the port of loading or destination (except where such foulberthing could reasonably have been known by the Assured prior to sailing);

3.5.10. the refusal of the Master to proceed through any area through which the overseas vessel must pass in order to reach the port of destination or port of loading on the grounds that such port or area are dangerous, where the Master's decision is upheld at law or Insurers agree that it would be so upheld;

4. GENERAL CONDITIONS

4.1. This is a Policy of indemnity and, for that reason, it is noted and agreed that no recovery hereunder shall exceed the actual financial loss sustained by the Assured.

4.2. The Assured shall use due diligence in fulfilling all its obligations in connection with the delivery of the Goods and shall do and concur in doing all things reasonably practicable to avoid or diminish any loss insured hereunder. Such due diligence shall include the purchase, where possible, of comparable Goods from any alternative source.

4.3. Upon the discovery of any event likely to give rise to a claim under this Policy, the Assured shall immediately give notice thereof to the Insurers hereon.

4.4. The premium paid on this Policy is deemed not to be an expense in assessment of any claim hereunder.

4.5. In any claim and/or any action, suit, or proceeding to enforce a claim for loss hereunder, the burden of proving that the loss is recoverable under this policy, that no Warranty or Condition has been breached, and that no Exclusion applies shall fall upon the Assured.

4.6. The Assured under this Policy shall, at the request and at the expense of the Insurers, do and concur in doing and permit to be done all such acts and things as may be necessary or reasonably required by Insurers for the purpose of enforcing any rights and remedies, or of obtaining relief or indemnity from other parties to which the Insurers shall be or would become entitled or subrogated upon their paying for any loss under this Policy whether such acts and things shall be or become necessary or required before or after the Assured's indemnification by the Insurers.

4.7. After payment of a claim, all subsequent salvage and recoveries in respect of the Insured loss made by the Assured shall inure to the benefit of Insurers, except to the extent of any amount of loss which would have been recoverable hereunder but for the limit contained herein, the Assured being entitled to redeem such amount prior to paying any sums received in the nature of salvage, proceeds of alternative sales and other recoveries to Insurers. The Assured hereby acknowledges that with the above exception he holds such sums recovered in trust for Insurers and that they will pay all sums so received to Insurers upon receipt by them and/or by any person on their behalf.

4.8. The law applicable to any interpretation of this endorsement and the rights and obligations of the Company and assured hereunder shall be US federal common law or, in the absence of US federal maritime common law, the laws of the State of New York, irrespective of any principles of choice of law.

5. EXCLUSIONS

THIS ENDORESMENT DOES NOT COVER

5.1. any loss arising from the non-arrival of the Goods at the Delivery Point caused by any physical loss or damage to the goods covered under this policy.

5.2. any loss arising from any legal and/or contractual liability of the Assured to any supplier, manufacturer or end buyer of the Goods, whether or not such liability arises from the occurrence of an Insured Event other than contractual liabilities specifically insured hereunder;

5.3. any claims for the actual value of the Goods and/or any other property;

5.4. any loss which is insured by or would, but for the existence of this Policy, be insured by any other existing policy or policies, except in respect of any excess beyond the amount which would have been payable under such other policy or policies had this Policy not been effected;

5.5. any loss, or that part of any loss, arising from improper, inadequate or defective packing and/or handling, loading, stowage or stuffing and/or insufficient or inadequate marking or numbering of the Goods by any supplier or its servants;

5.6. any loss proximately caused by wear, tear, gradual deterioration, inherent vice or nature of the Goods;

5.7. any loss arising from rejection or condemnation of the Goods by the government of the country of import or their agencies or departments;

5.8. any loss arising from embargo or prohibition declared by any governments.

5.9. any loss arising from or contributed to in any way by any wrongful act of the manufacturer or buyer of the Goods;

5.10. any loss arising from incorrect instructions given by, and/or faulty arrangements or clerical errors made by, and/or any other negligent act, error or omission of any freight forwarder;

5.11. any loss arising from insolvency or financial default;

5.12. any loss arising from or contributed to in any way by fraud and/or any breach of the law and/or any regulations, including customs and/or quarantine regulations, whether by omission or commission;

5.13. any loss, damage, liability or expense directly or indirectly caused by or contributed to by or arising from:

5.13.1. ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel;

5.13.2. the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof;

5.13.3. any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

5.14. any loss arising from or connected with the absence, shortage, lockout or withholding of labour;

5.15. any loss arising from physical loss or damage to the goods covered on this policy.

5.16. any loss directly or indirectly occasioned by happening through or in consequence of war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power, except as may be covered under Clauses 3.5.9 or 3.5.10.

5.17. any loss arising from any failure of the Assured or it’s agents or representatives to obtain all necessary permits and authorizations;

5.18. any loss arising from deterioration of market and/or loss of market whether caused by peril insured against or otherwise;

5.19. any loss arising from infidelity or dishonesty on the part of the Assured or any of the Assured’s employees or others to whom the Goods may be entrusted, mysterious disappearance, or loss or shortage disclosed on taking inventory;

5.20. any loss arising from manufacturing processing, renovating or repairing;

5.21. any loss arising from faulty materials, faulty workmanship, or errors in design;

5.22. any loss arising from electrical injury or disturbance to electrical appliances, devices, or wiring caused by electrical currents artificially generated;

5.23. any loss arising from any electrical or mechanical breakdown;

5.24. any loss arising from contraband or illegal trade;

5.25. any loss arising from chemical or biological release or exposure of any kind;

5.26. any 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.

6. WARRANTIES

6.1. Warranted that a clean Bill of Lading or other receipt is not obtained by the Assured's granting of an indemnity to any forwarder and/or overseas carrier.

6.2. Warranted that at inception hereof the Assured has no knowledge or information of any matter, fact or circumstance which is likely to give rise to a loss hereunder.

6.3. Warranted that the Assured does not disclose the existence of this Policy to any third party without prior approval of the Insurers.

6.5. Warranted that the Assured observes and complies with any laws and regulations of the scheduled Foreign Countries of which it should reasonably have been aware.

6.6. Warranted that the Assured will advise Insurers hereon of any material changes to any information supplied by the Assured (or its agent or representative) to said Insurers prior to or subsequent to inception of this Policy. Any failure of the Assured to advise such material changes prior to the occurrence of an Insured Event may serve (at the sole decision of Insurers hereon) to reduce or prevent recovery for any claim hereunder.

All other terms and conditions of this policy remained unchanged.

Mexican Shipment Warranties

It is hereby understood and agreed that the following warranties shall apply under the terms and conditions of this policy for all truck shipments originating or terminating in Mexico:

1. Warranted that drivers must be equipped with two-way radios or cellular telephones.

2. Warranted that all vehicles used are equipped with GPS devices in tractors and trailers; tracking devices in shipping cartons should be considered;

3. Warranted that a vetted employee of the transportation firm must be with the load at all times until the shipment reaches the final destination in a secured location.

4. Warranted that all truck shipments must have two company employees (one driver and one additional employee) to accompany the load.

5. Vehicles should be pre-fueled and ready for trip to avoid any un-planned stops.

6. Drivers should be equipped with panic alarm and shut-off switch in tractor.

7. Coverage excludes overnight stays.

8. Warranted that all cargo will be in Nondescript cartons or packaging. No reference shall be visible as to manufacturers name or “name brands” that may suggest what the cartons may contain. Also the palletized units should not contain any reference to “telephones” or “cellular” or the name of the consignee when the consignee is a recognized cellular phone provider.

9. Warranted that all truck movements within Mexico will have an armed escort service or trucks equipped with panic buttons, 2 way radio or cell phones, or be shipped via armored car service.

Mexican Shipment Warranties - High Value Care Warranties

It is hereby understood and agreed that the following warranties shall apply under the terms and conditions of this policy for all shipments above $250,000 in values:

1. Warranted that drivers must be equipped with two-way radios or cellular telephones.

2. Warranted that all vehicles used are equipped with GPS devices in tractors and trailers; tracking devices in shipping cartons should be considered;

3. Warranted that the attended Vehicle Warranty shall apply for all shipments, meaning that a vetted employee of the transportation firm must be with the load at all times until the shipment reaches the final destination in a secured location.

4. Warranted that all truck shipments must have two company employees (one driver and one additional employee) to accompany the load and the Attended Vehicle Warranty shall also apply.

5. Warranted that warehouse locations must be equipped with Central Station Alarm (or similar) back-up wireless and motion detectors. Also, that all Warehouse locations are subject to Insurance Company survey and any recommendations that are issued must be complied with in reasonable amount of time.

6. Vehicles should be pre-fueled and ready for trip to avoid any un-planned stops.

7. Drivers should be equipped with panic alarm and shut-off switch in tractor.

8. No coverage for vehicles left un-attended and no coverage during overnight stays.

Allianz Policy Terms & Conditions

 

Ocean Cargo Claim Reporting

Our highly skilled Marine Claims professionals are committed to providing our valued clients with the best service possible and they will respond quickly to any claim situation that you may have.

You can notify us of a new claim via any of the following reporting options:

Telephone: +1.800.558.1606

Outside of the US: +1.314.513.1353

Email: NewLoss@agcs.allianz.com

Fax: +1-888.323.6450

Outside of the US: +1.314.513.1345

Mailing Address:

Allianz Global Corporate & Specialty

Attn: FNOL Claims Unit

One Progress Point Parkway, 2nd Floor O'Fallon, MO 63368

If possible, please include the following information in your claim notice or have it available for our customer service representative:

Contact information Policy #

Date of loss Description of loss

Ocean Marine

Logistics Provider Cargo Policy

OC91720800

PROCEDURES IN CASE OF LOSS

If there is any loss or damage, which may become a claim under your policy, follow these procedures to protect your insurance claim and facilitate its adjustment.

1) PROMPTLY REPORT LOSS OR DAMAGE to your insurance agent or broker or to the AGCS Marine Insurance Company Claims Reporting Office to permit them to assign an adjuster and take whatever action might be necessary. Claims may be submitted via telephone - 800.558.1606 or 314.513.1353, email - NewLoss@agcs.allianz.com fax - 888 323-6450 or 314 513-1345 or mail - Allianz Global Corporate & Specialty, Attn: FNOL Claims Unit, One Progress Point Parkway, 3rd Floor, O'Fallon, MO 63368. If outside of the U.S. and you do not wish to report the claim directly to AGCS then you may contact the nearest claims agent shown on the certificate of insurance. If there is no agent nearby, then you may contact the nearest correspondent of the

American Institute of Marine Underwriters: http://www.aimu.org/worldwidecountry.html

or

Lloyds: http://agents.lloydsagency.com/agentdirectory.aspx

Invite the delivery carrier’s representative to attend any survey. If loss or damage is discovered on the dock, have the survey conducted there without delay.

2) MAKE IMMEDIATE INSPECTION OF EACH PACKAGE

3) TAKE PROPER EXCEPTIONS on the delivery receipt when any loss or damage is apparent at the time of taking delivery. It is most important that exact exceptions are taken in writing on the delivery receipt as to the condition of the shipment and a copy of the delivery receipt must be retained by the Assured for the claim file.  When delivery is made by intermodal container, the container and its seals must be closely examined.  If the container is delivered damaged or with seals broken or with seal numbers other than as stated on the shipping document, the consignee must write the exact exception on the delivery receipt and retain all defective or irregular seals for subsequent identification. Have the driver open the container prior to signing a receipt. If any damage is noted, call for an immediate survey.

4) TAKE STEPS TO PREVENT FURTHER DAMAGE

5) IMMEDIATELY FILE CLAIM IN WRITING against the delivering carrier, holding the carrier responsible as soon as loss or damage is discovered even though the full extent of damage is not known. Details can be furnished later. If more than one carrier (Ocean, Truck, etc.) is involved, claim must be filed against all of them. As the actual amount of loss or damage in most cases cannot be determined at the outset, the full value of the cargo should be used as the amount claimed against the carriers, unless a higher amount is obvious. This is extremely important especially in the case of inland carriers and air carriers, as the law provides that the claim, to be valid, must specify some amount.

6) COLLECT THE FOLLOWING DOCUMENTS which may be requested to support your insurance claim. Preserve all packing for possible examination by the surveyor.

A. Original or certified copies of all ocean and inland bills of lading and air waybills covering the entire shipment insured, including transshipment bills of lading, freight notes and one-way bills when applicable.  All bills of lading and air waybills are to include both front and back sides and contain all terms and conditions of the contract of affreightment

B. Certified copy of shipper’s commercial invoices covering the entire shipment insured.

C. Copy of packing list.

D. Duty Consumption Entry Report, if import duty is insured. In the United States, submit Customs Form 5931 on duty losses involving non-delivery.

E. Copies of all delivery receipts with proper exceptions of loss or damage noted, and any other exception or bad order slips which may substantiate the loss or damage.

F. On non-delivery claims, written confirmation by the carrier attesting to their inability to make delivery and all three (3) original bills of lading evidencing receipt and/or title to the shipment.

G. Copies of written claims against transporting carriers or other parties with their reply, when available.

H. Assured’s Statement of claim.

I. Original or Duplicate of Special Cargo Policy or Certificate of Insurance, if issued, properly endorsed by the payee. In case of import shipments not covered by a Special Cargo Policy or Certificate of Insurance, please identify the declaration or monthly report on which the shipment has been declared to underwriters.

J. Bills for repairs, reconditioning or other expenditures and any other proofs of loss that may be required in each specific case.

K. Surveyor’s certificate or survey report.

L.  Any other correspondence or reports or information relevant to the transit, loss, or damage.

GENERAL AVERAGE

In a general average situation, the vessel owner has a lien on the cargo for cargo's ultimate contribution   to the general average sacrifices or expenditures. In order to secure this lien prior to release of cargo, the procedure generally will be as follows:

An average agreement or bond will be sent to the consignee named in the bill of lading by the average adjuster appointed by the vessel owner or it local agent. This agreement or bond must be signed by a corporate officer or party having power of attorney in the consignee's firm and promptly returned, together with certified copies of the commercial invoice, to the party designated.

As further security of the lien, a cash deposit may be required. This deposit will be the estimated General Average Contribution due from the particular shipment. However, no deposit should be made without this Company's approval, as the adjuster will normally accept our guarantee in lieu thereof.  In the event a cash deposit must be made, apply to this Company for refund, enclosing the deposit receipt endorsed to this Company.

In order to avoid delay in obtaining release of cargo, the consignee should immediately notify this Company's Marine Claims Department or, in the case of an export shipment, this Company's nearest claims agent and submit the following    documents:

1. Copy of the commercial invoice(s)

2. Copy of the ocean bill(s) of lading

3. Copy of the insurance certificate or special policy, if one was issued.

 

Open Marine Policy Number OC91720800

GENERAL DECLARATIONS

 

The AGCS MARINE INSURANCE COMPANY, hereinafter referred to as the Company, in consideration of premiums as agreed to be paid, does insure:

1. ASSURED

hereinafter referred to as the Assured.

2. ACCOUNT

For the account of whom it may concern.

3. LOSS PAYABLE

Loss, if any, payable to the Assured or order.

4. GOODS INSURED

Upon all lawful goods consisting general approved merchandise fully containerized per index of commodities.

5. ATTACHMENT and CANCELLATION

This insurance shall attach on shipments made on and after 03/01/2017, and with respect to Section III if purchased, on 03/01/2017 at 12:01 A.M., Standard Time where the goods are located. This Policy is continuous and shall cover as herein provided unless canceled by either party as specified herein.

This Policy or any of its sections may be canceled in either of the following ways:

A. Either party may give Thirty (30) days written notice to the other party, but with respect to the War Risks

Only Open Cargo Policy and the SR&CC Endorsement to this policy, this insurance may be canceled by either party upon forty-eight hours written, telegraphic or telefaxed notice to the other party.

B. Willful failure by the Assured either to make Declarations or to pay premiums when due shall (at the option of this Company) render this Policy null and void as of and from the date of such willful failure.

The Company will mail or deliver its notice of cancellation to the Assured at the address shown in this     policy or to the Assured's insurance broker, at the company’s option. Such cancellation shall not affect      any shipment on which this insurance attached prior to the date of cancellation, but all coverage on goods insured on a time or location basis shall terminate on the effective date of the cancellation.

6. COVERAGES PURCHASED

This Logistics Provider Cargo Policy is comprised of General Declarations and only those Sections, shown in the General Declarations, as having been "Purchased" by the Assured.

7. INSURANCE BROKER

It is a condition of this Policy that the Assured's insurance broker, or any substituted broker, shall be     deemed to be exclusively agents of the Assured and not of this Company in any and all matters relating        to, connected with or affecting this insurance. Any notice given or mailed by or on behalf of this Company to the broker in connection with or affecting this insurance, or its cancellation, shall be deemed to have been delivered to the Assured, and shall be binding on the Assured.

8. REPORTING AND PAYMENT OF PREMIUMS

[Per IMI Cargo Terms & Conditions or per agreement with IMI Cargo.]

9. INSPECTION OF RECORDS

This Company or its duly appointed representative shall be permitted at any time during business hours while this Policy is in force, or within one year after its termination, to inspect the records of the Assured as respects goods insured within the terms of this Policy.

10. ERRORS AND OMISSIONS

Provided notice be given this Company as soon as practicable after the facts become known to the Assured and deficiency of premium, if any, made good, this Policy shall not be prejudiced by any unintentional:

A. delay or omission in the transmission of declarations required;

B. error in the quantity, value or description of the goods;

C. error in the description of the vessel or voyage.

11. VESSEL CLASSIFICATION CLAUSE

Shipped on:

(1) metal-hulled, self-propelled vessels which are not over 20 years of age nor less than 1000 net registered tons and which are classed A1 American Record or equivalent by a Member of the International Association of Classification Societies; or

(2) vessels over 20 years of age which are approved by this Company, and which are not less than 1000 net registered tons and classed as in (1) above, but only while operating in their regular trades; but in either case excluding vessels built:

a) for service on the Great Lakes;

b) solely for military or naval service; or

c) for the carriage of dry bulk or liquid bulk cargoes, and which are more than 15 years of age, unless specifically approved by this company.

(3) ocean going barges which are classed A1 American Record or equivalent by a Member of the International Association of Classification Societies.

On shipments of new approved general merchandise, and merchandise subject to special conditions as per the Index of Commodities contained in this policy:

 

SECTION I: OCEAN MARINE CARGO GENERAL PROVISIONS

12. INTEREST

This insurance is to cover all shipments by or to the Assured for their account as Principals or as Agents for others, or for account of others with orders to insure, provided such orders are given in writing prior to the attachment of risk hereunder and prior to any known loss or damage; excluding, unless otherwise provided herein, goods sold under instructions not to insure and goods purchased by the Assured on C.I.F. or on other terms including insurance.

13. GEOGRAPHIC LIMITS

Shipments covered by this Policy are insured at and from places in the world to places in the world, except that there is no coverage for shipments to or from countries which are the subject of trade or economic embargoes imposed by the laws or regulations of the United States of America.

Notwithstanding the above, all shipments to, from or in CIS countries, Latvia, Lithuania or Estonia are excluded and not covered by this Policy [unless specifically agreed and approved by IMI Cargo and the insurer.]

14. CONVEYANCES, CRAFT, ETC.

A. Attaching on shipments by the conveyance specified and, in all cases, including connecting conveyances:

(1) Iron or steel vessels propelled solely by mechanical power.

(2) Aircraft.

(3) Metal barges.

(4) Rail and/or truck.

B. Including transit by craft and/or lighter to and from the vessel. Each craft and/or lighter to be deemed a separate insurance. The Assured is not to be prejudiced by any agreement exempting lightermen from liability.

NOTE: Wherever the words "ship" or "vessel" appear in this Policy, they are deemed to include any conveyance. Wherever the words "seaworthiness" or "ship or vessel owner" appear in this Policy, they are deemed to include also the words "conveyance-worthiness" or "conveyance- owner".

15. LIMITS OF LIABILITY, ACCUMULATION, AND FULL VALUE REPORTING

A. This Company is not to be liable for more than the amounts stipulated in the General Declarations of this Policy.

B. Should there be an accumulation of goods insured beyond the limits expressed in this policy by reason of an interruption of transit, or by reason of a casualty or other occurrence, or at a transshipping point, or on a connecting conveyance, this Company shall hold covered such excess amount and shall be liable for the full amount at risk (but in no event to exceed twice the applicable limit of liability) provided said accumulation is beyond the control of the Assured and provided the Assured notifies this Company of the accumulation as soon as it is known to them.

C. If the total value at risk exceeds the applicable limit of liability provided by this policy, this Company shall in no event be liable for more than the full amount of loss up to but not exceeding the applicable limit of liability. If the premium provision for this policy requires the Assured to report values at risk, the assured shall nevertheless report to this Company the full amount at risk and shall pay full premium thereon.

16. VALUATION

A. Valued at invoice value (premium included), including all charges in the invoice and including prepaid and/or guaranteed and/or advanced freight, if any; or

B. in the absence of an invoice, goods shall be valued at the actual cash value at destination on the date of shipment, but in the event of loss, less any charges saved which would have become payable upon delivery at destination.

17. WAREHOUSE TO WAREHOUSE AND MARINE EXTENSION

A. This insurance attaches from the time the goods leave the warehouse at the place named in the certificate, special policy, or declaration for the commencement of transit and continues during the ordinary course of transit, including customary transshipment, if any, until the goods are delivered to the final warehouse at the destination named in the certificate, special policy, or declaration, or a substituted destination, as provided in paragraph C. hereunder.

B. This insurance specifically to cover the goods for perils insured against during:

1) deviation, delay, forced discharge, re-shipment and transshipment;

2) any other variation of the adventure arising from the exercise of a liberty granted to the shipowner or charterer under the contract of affreightment.

C. In the event of the exercise of any liberty granted to the shipowner or charterer under the contract of affreightment whereby such contract is terminated at a port or place other than the original insured destination, the insurance continues until the goods are sold and delivered at such port or place; or, if the goods be not sold but are forwarded to the original destination or to any other destination, this insurance continues until the goods have arrived at the final warehouse.

D. If while this insurance is still in force and before the expiry of 15 days from midnight of the day on which the discharge overside of the goods insured from the overseas vessel at the final port of discharge is completed, the goods are resold (not being a sale within the terms of paragraph C) and are to be forwarded to a destination other than that covered by this insurance, the goods are covered hereunder while deposited at such port of discharge until again in transit or until expiry of the aforementioned 15 days, whichever shall first occur. If a sale is effected after the expiry of the aforementioned 15 days and this insurance is still in force, by virtue of a "held covered" provision, the protection afforded hereunder shall cease as from the time of sale.

E. Held covered at a premium to be arranged in case of change of voyage or any omission or error in the description of the goods insured, vessel or voyage.

F. It is a condition of this insurance that there shall be no interruption or suspension of transit unless due to circumstances beyond the control of the Assured.

All other terms and conditions of the Ocean Marine Cargo policy not in conflict with the foregoing remain unchanged, it being particularly understood and agreed that the Free of Capture & Seizure clause remains in full force and effect, and that nothing in the foregoing shall be construed as extending this insurance to cover any risks of war or consequences of hostilities.

18. REFUSED SHIPMENTS

Goods shipped by the Assured and refused by the consignee, or which remain at the risk of the Assured beyond the normal course of transit, are held covered until disposed of by the Assured by return to the port of shipment or to the intended alternate destination. In no event shall this insurance inure to the benefit of the consignee.

19. BILL OF LADING, ETC.

The Assured is not to be prejudiced by the presence of the "Negligence" Clause and/or "Latent Defect" Clause in the Bills of Lading and/or Charter Party. The seaworthiness of the vessel as between the Assured and this Company is hereby admitted and the wrongful act or misconduct of the shipowner or his servants causing a loss is not to defeat the recovery by an innocent Assured if the loss in absence of    such wrongful act or misconduct would have been a loss recoverable under this policy. With leave to sail with or without pilots, and to tow and assist vessels or craft in all situations, and to be towed.

20. CARRIER

Warranted that this insurance shall not inure, directly or indirectly, to the benefit of any carrier or bailee.

21. AUTHORITY TO ISSUE CERTIFICATES OR SPECIAL POLICIES

A. Authority is hereby granted the Assured to issue this Company's certificates or special policies hereunder, provided such certificates or special policies shall conform to the terms and conditions of this open policy. All such certificates or special policies issued shall be countersigned by a duly authorized representative of the Assured.

B. The Assured may issue certificates or special policies incorporating London Institute Cargo Clauses.

C. In the event certificates or special policies are spoiled or voided, the original and duplicate are to be returned promptly to this Company. If this Policy is canceled, all unused certificates or special policies are to be returned promptly to this Company.

D. By using this Company's certificates or special policies, the Assured agrees to reimburse the Company if, by reason of any omission or insertions made by the Assured or their representative upon such certificate or special policy, this Company is obliged to pay a claim not covered by this Open Cargo Policy, or any amount in excess of the amount this Ocean Marine Cargo Policy undertakes to pay.

INSURING CLAUSES

22. PERILS

Touching the adventures and perils which this Company is content to bear and take upon itself, they are of the Seas, Fires, Assailing Thieves, Jettisons, Barratry of the Master and Mariners, and all other like perils, losses and misfortunes that have or shall come to the hurt, detriment or damage of the goods insured or any part thereof.

23. SHORE PERILS

Notwithstanding any average warranty contained herein,  shipments while in transit or otherwise on land   are  insured  against loss and/or damage, irrespective  of  percentage, caused by,  or reasonably attributed to fire, smoke, lightning, earthquake, volcanic action, typhoon, hurricane, cyclone, windstorm, landslide, flood, rising waters, sprinkler leakage, collision, upset, overturn, derailment or other accident to the land conveyance, aircraft damage, falling objects, vehicular damage,  collapse  and/or  subsidence  of  docks, bridges, culverts and/or other structures. However, shipments insured "All Risks" while waterborne are insured "All Risks" while in transit or otherwise on land.

24. GENERAL AVERAGE

Subject always to the applicable limit of liability, General Average and Salvage Charges are payable in      full  irrespective  of insured and contributory  values,  in accordance with  United States laws  and  usage and/or as per Foreign Statement and/or as per York-Antwerp Rules (as prescribed in whole or in part) if in accordance with the Contract of Affreightment.

25. BOTH TO BLAME

When the goods are shipped under a bill of lading containing the so-called 'Both to Blame Collision' Clause, this Company agrees as to all losses covered under this policy, to indemnify the Assured for this policy's proportion of any amount which the Assured may be legally bound to pay to the shipowners under such clause. In the event that such liability is asserted, the Assured agrees to notify this Company which shall have the right at its own cost and expense to defend the Assured against such claim.

In no event, however, shall this Company be liable for more than the insured value of the goods.

26. INCHMAREE

This insurance is also specifically to cover, irrespective of percentage, any loss of or damage to the goods insured hereunder through the bursting of boilers, breakage of shafts or through any latent defect in the machinery, hull or appurtenances, or from faults or errors in the navigation or management of the vessel by the master, mariners, mates, engineers, and pilots.

27. EXPLOSION

This insurance is also specifically to cover, irrespective of percentage, loss, damage or expense resulting from explosion howsoever or wheresoever occurring. It is especially understood and agreed, however, that this wording is not intended to cover any of the risks excluded by the Free of Capture & Seizure and/or Strikes, Riots & Civil Commotions warranties set forth elsewhere in this policy.

28. SUE AND LABOR

In case of any imminent or actual loss or misfortune, it shall be lawful and necessary for the Assured, his or their factors, servants and assigns, to sue, labor, and travel for, in and about the defense, safeguard, and recovery of the goods insured, or any part thereof, without prejudice to this insurance. Subject always to the applicable limit of liability, sue and labor charges are payable irrespective of percentage.  The acts of the Assured or this Company in recovering, saving, or preserving the goods insured, in case of loss, shall not be deemed a waiver or acceptance of abandonment.

29. WAREHOUSING AND FORWARDING CHARGES, PACKAGES LOST IN LOADING, ETC.

A. Despite any average warranty contained in this Policy, this Company will pay any reasonable landing, warehousing, forwarding, and special charges for which this Policy would be liable, as well as the insured value of any package, piece, or unit totally lost in loading, transshipment or discharge.

B. This Company will also pay any reasonable landing, warehousing, forwarding, and special charges which result from insolvency or financial default of the owners, charterers, managers, or operators of the vessel. In no event, however, shall this insurance provide coverage for such charges if at the time of loading of the insured subject matter on board the vessel, the Assured is aware or in the ordinary course of business should be aware that such insolvency or financial default could prevent the normal continuation of the voyage.

30. FUMIGATION

This insurance is also specially to cover, irrespective of percentage, damage to the goods insured arising out of the vessel, wharf, warehouse or other goods being fumigated by order of properly constituted authority.

AVERAGE CLAUSES

31. FREE OF PARTICULAR AVERAGE

Warranted free from particular average unless the vessel or craft be stranded, sunk or burnt, but notwithstanding this warranty, this Company shall pay for any loss or damage to the goods insured which may reasonably be attributed to fire, collision or contact of the vessel or craft with any external substance (ice included) other than water, or the discharge of the goods insured at a port of distress; also including the risks of jettison and washing overboard irrespective of percentage. This warranty, however, shall not apply where broader terms of average are provided by or endorsed to this Policy.

32. TERMS OF AVERAGE

Shipments of general approved merchandise fully containerized per index of commodities sufficiently packed to withstand the intended voyage covered by this Section are insured against all risks of physical loss or damage from any external cause, except as noted in this policy (and excepting such risks as are excluded by the Paramount Warranties in this Policy).

DEDUCTIBLE:

Each claim for loss or damage covered under this section shall be adjusted separately and from the amount of each claim as adjusted shall be [any applicable deductible as per the Original Certificate of Insurance] each Bill of Lading separately insured, unless such loss or damage be caused by stranding, sinking, burning, or collision of the conveyance, or General Average or Salvage Charges.

A. VESSEL - ON DECK, Subject To An On-Deck Bill Of Lading

Shipments On Deck subject to an On-Deck Bill of Lading are warranted free from particular average unless directly resulting from the vessel or craft being stranded, sunk or burnt, but notwithstanding this warranty, this Company shall pay for any loss or damage to the goods insured which may reasonably be attributed to fire, collision or contact of the vessel or craft with any external substance (ice included) other than water, or to discharge of the goods insured at a port of distress; also including the risks of jettison and washing overboard irrespective of percentage.

B. BARGE - UNDER DECK

Shipments by barge (other than as a connecting conveyance) Under Deck are warranted free from particular average unless the vessel or craft be stranded, sunk or burnt, but notwithstanding this warranty, this Company shall pay for any loss or damage to the goods insured which may reasonably be attributed to fire, collision or contact of the vessel or craft with any external substance (ice included) other than water, or the discharge of the goods insured at a port of distress.

C. BARGE - ON DECK

Shipments by barge (other than as a connecting conveyance) On Deck are warranted free from particular average unless directly resulting from the vessel or craft being stranded, sunk, or burnt, but notwithstanding this warranty, this Company shall pay for any loss or damage to the goods insured which may reasonably be attributed to fire, collision or contact of the vessel or craft with any external substance (ice included) other than water, or to discharge of the goods insured at a port of distress; also including the risks of jettison and washing overboard irrespective of  percentage.

SPECIAL INSURING CONDITIONS

[SEE SPECIFIC INSURING CONDITIONS SHOWN ON YOUR ORIGINAL CERTIFICATE(S) OF INSURANCE.]

ADDITIONAL COVERAGES

Subject always to the applicable terms of average:

33. DEBRIS REMOVAL

This insurance is extended to indemnify, in addition to any other amount recoverable under this insurance, expense reasonably incurred by the Assured for the removal and disposal of debris of the subject matter insured, by reason of damage thereto caused by an insured peril, but excluding absolutely:

1. Any expenses incurred in consequence of or to prevent or mitigate pollution or contamination, or any threat or liability therefore.

2. The cost of removal of cargo from any vessel or connecting watercraft.

In no case shall this Company be liable under this clause for more than <<&#35;&#35;&#37;>> of the insured value of the damaged merchandise or $<<&#36;&#36;>>, whichever is less, any one occurrence.

34. DELIBERATE DAMAGE - POLLUTION HAZARD

This insurance is also specifically to cover, but only while the goods insured are on board a conveyance, loss of or damage to the goods directly caused by governmental authorities acting for the public welfare to prevent or mitigate a pollution hazard or threat thereof, provided the accident or occurrence (which required governmental action) constituted a peril insured against.

This coverage shall not increase the applicable limit of liability provided for in this Policy.

35. DELIBERATE DAMAGE - U.S. CUSTOMS SERVICE

This insurance is also specifically to cover (notwithstanding the Free of Capture & Seizure warranty contained herein) physical loss of or damage to the goods insured arising out of the performance of inspection duties by the U.S. Customs Service or another duly constituted governmental agency of the United States who are performing inspection duties of or for the U.S. Customs Service.

36. LABELS, CAPSULES, WRAPPERS OR CARTONS

If an insured peril causes damage to labels, capsules, wrappers or cartons, this Company shall pay no more than an amount sufficient to pay the cost of new labels, capsules, wrappers or cartons, and the cost of reconditioning and/or relabeling the goods.  In no event, however, shall this Company be liable for more than the insured value of the damaged goods.

37. BRANDS OR TRADEMARKS

At the option of the Assured, in case of damage to goods bearing a brand or trademark, or the sale of       which carries or implies a guarantee of the supplier or the Assured, the salvage value of such damaged goods shall be determined after the removal, in the customary manner, of all brands or trademarks. On packages where the brand or trademark cannot be removed, the contents shall be transferred to plain packages.   With respect to any goods and/or packages where it is impractical to destroy all evidence of the Assured's connection therewith, this Company agrees to consult and cooperate with the Assured with respect to the disposition of said goods and/or packages.   Should it become necessary to destroy the   goods and/or packages, the Assured shall give this Company the opportunity to have a representative in attendance. All reasonable expenses incidental to removal of brands or trademarks, or destruction of the goods or packages, if necessary, shall be part of the claim.

In no event, however, shall this Company be liable for more than the insured value of the damaged goods.

38. IMPORT DUTY

This insurance is also specially to cover the risk of partial loss on the duties imposed on goods insured. However, when the risk upon the goods continues beyond the time of landing from the overseas vessel, the increased value, consequent upon the payment of such duties, shall attach as an additional insurance upon the goods. Any limit of liability expressed in this policy shall be applied separately to such increased value.  The Assured shall, in all cases, use reasonable efforts to obtain abatement or refund of duties paid or claimed on goods lost, damaged or destroyed. It is further agreed that the Assured shall, when this Company elects, surrender the goods to the customs authorities and recover duties thereon as provided by law, in which event the claim under this policy shall be only for a total loss of the goods so surrendered, and expenses.

39. CONSOLIDATION, DECONSOLIDATION AND FORWARDING

Notwithstanding anything contained elsewhere herein to the contrary, (particularly the Warehouse to Warehouse and Marine Extension Clause), this Policy shall cover, subject to its terms and conditions, the goods prior to their arrival at the final destination (except at any premises owned, leased, or operated by the Assured) while temporarily detained during the ordinary course of transit for purposes of consolidation, deconsolidation containerization, decontainerization and forwarding, anywhere in the world whether prior to loading or after discharge from the overseas vessel for a period not exceeding Thirty (30) days after arrival at the consolidation point. Held covered in excess of this time period provided the Assured gives prompt written notice to this Company as soon as this fact is known to the Assured and pays additional premium at rates to be agreed.

It is especially understood and agreed that in no event shall this clause be deemed to cover insured goods while at any location solely for the purpose of storage.

40. UNEXPLAINED SHORTAGE

This insurance is also specifically to cover shortage of goods insured from intermodal container(s), meaning (a) the difference between the number of packages as per shippers and/or suppliers invoice and/or packing list which were loaded and (b) the count of the packages removed taken by the Assured and/or their agent at the time of discharge from the container upon arrival at the final insured destination, provided that:

A. the coverage for the shipment includes loss caused by theft; AND

B. the Assured makes every attempt to recover the loss from anyone who may have been responsible for the shortage through involvement in stuffing the container; AND

C. this clause excludes liability for any such loss which can be attributed to forcible entry into the container which occurred after its delivery to the store, warehouse, factory or other premises to which the goods are insured.

It is a condition precedent to this coverage that the Assured shall not divulge the existence of this coverage to any party.  Such disclosure shall void coverage provided by this clause.

41. FRAUDULENT BILL OF LADING

This Policy covers physical loss or damage occasioned through the acceptance by the Assured or their agents or shippers of fraudulent Bills of Lading and/or shipping receipts and/or messenger receipts, or by the use of legitimate bills of lading and/or other shipping documents without the authorization of the Assured or their agents, all provided that:

A. the coverage for the shipment includes loss caused by theft; AND

B. in no event does this policy cover loss or damage arising from the shipper's fraud or misstatement.

42. CONCEALED DAMAGE

This insurance is also specially to cover (provided that notice of loss is given to this Company within 90 days from the arrival of the goods insured at the final destination) concealed damage which may be reasonably attributed to having occurred during the insured voyage.

It is a condition precedent to the coverage for concealed damage that notice of loss must be given to this Company immediately upon discovery of packages or freight units that show evidence of external damage at the time of arrival at the final destination; failure to do so voids the coverage for concealed damage.

PARAMOUNT WARRANTIES

The following warranties shall be paramount and shall not be modified or superseded by any other provision contained in this Policy or stamped or endorsed hereon unless such other provision refers specifically to the risks excluded by these Warranties and expressly assumes the said risks.

43. FREE OF CAPTURE & SEIZURE

Notwithstanding anything contained in this Policy to the contrary this insurance is warranted free from:

A. capture, seizure, arrest, restraint, detainment, confiscation, preemption, requisition or nationalization, and the consequences thereof or any attempt thereat, whether in time of peace or war and whether lawful or otherwise:

B. all loss, damage or expense, whether in time of peace or war, caused by

(i) any weapon of war employing atomic or nuclear fission and/or fusion or other reaction or radioactive force or matter or

(ii) any mine or torpedo;

C. all consequences of hostilities or warlike operations (whether there be a declaration of war or not), but this warranty shall not exclude collision or contact with aircraft, or with rockets or similar missiles (other than weapons of war) or with any fixed or floating object (other than a mine or torpedo), stranding, heavy weather, fire or explosion unless caused directly (and independently of the nature of the voyage or service which the vessel concerned or, in the case of collision, any other vessel involved therein, is performing) by a hostile act by or against a belligerent power; and for the purposes of this warranty "power" includes any authority maintaining naval, military or air forces in association with a power;

D. the consequences of civil war, revolution, rebellion, insurrection, or civil strife arising therefrom; or from the consequences of the imposition of martial law, military or usurped power; or piracy.

44. EXTENDED RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE WITH U.S.A. ENDORSEMENT

This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith.

A. In no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed to by or arising from

A.1 1ionizing radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel

A.2 the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof

A.3 any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

A.4 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.

RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE (U.S.A. ENDORSEMENT)

This insurance is subject to the Extended Radioactive Contamination Exclusion Clause (March 1, 2003) provided that

if fire is an insured peril and

where the subject matter insured or, in the case of a reinsurance, the subject matter insured by the original insurance, is within the U.S.A., its islands, onshore territories or possessions

and

a fire arises directly or indirectly from one or more of the causes detailed in Sub-Clauses A.1, A.2, and

A.4 of the Extended Radioactive Contamination Exclusion Clause March 1, 2003 any loss or damage arising directly from that fire shall, subject to the provisions of this insurance (reinsurance), be      covered, EXCLUDING however any loss damage liability or expense caused by nuclear reaction, nuclear radiation, or radioactive contamination arising directly or indirectly from that fire.

45. STRIKES, RIOTS & CIVIL COMMOTIONS

Notwithstanding anything contained in this Policy to the contrary, this insurance is warranted free from loss, damage or expense caused by or resulting from:

A. strikes, lockouts, labor disturbances, riots, civil commotions, or the acts of any person or persons taking part in any such occurrences or disorders;

B. vandalism, sabotage or malicious act, which shall be deemed also to encompass the act or acts of one or more persons, whether or not agents of a sovereign power, carried out for political, terroristic or ideological purposes and whether any loss, damage or expense resulting therefrom is accidental or intentional.

46. DELAY AND INHERENT VICE

Warranted free of claim for loss of market or for loss, damage, deterioration, or expense arising from delay, whether caused by a peril insured against or otherwise, or from inherent vice or nature of the goods insured.

47. INFIDELITY

In no case shall this insurance cover loss or damage caused by or resulting from misappropriation, secretion, conversion, infidelity or any dishonest act done by or at the instigation of the Assured or other party of interest to the underlying purchase or sale transaction, or their employees or agents (carriers for hire excepted).

48. U.S. ECONOMIC AND TRADE SANCTION CLAUSE

Whenever coverage provided by this policy would be in violation of any U.S. economic or trade sanctions such as, but not limited to, those sanctions administered and enforced by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC"), such coverage shall be null and void.

Similarly, any coverage relating to any certificates or other evidences of insurance or any claim that would be in violation of U.S. economic or trade sanctions as described above shall also be null and void.

49. CHEMICAL, BIOLOGICAL, BIO-CHEMICAL AND ELECTROMAGNETIC EXCLUSION CLAUSE (March 1, 2003)

This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith.

In no case shall this insurance cover loss, damage, liability or expense directly or indirectly caused by or contributed to or arising from an actual or threatened act involving a chemical, biological, bio-chemical or electromagnetic weapon, device, agent or material when used intentionally in a hostile manner.

50. OTHER INSURANCE

LOSS CLAUSES

A. If any goods insured hereunder are covered by other insurance which attached prior to the date of attachment of this Policy, this Company shall be liable only for the amount in excess of such prior insurance and shall return to the Assured premium to be agreed after determination of the terms of the other insurance.

B. If any goods insured hereunder are covered by other insurance which attached subsequent to the date   of attachment of this Policy, this Company shall nevertheless pay to the full extent of its liability under this insurance without right to claim contribution from the subsequent insurers.

C. If any goods insured hereunder are covered by other insurance which attached on the same date of attachment of this Policy, such other insurance shall be deemed to be simultaneous, and this Company will be liable only for a pro-rata contribution to the loss or damage in proportion to the amount that the insurance under this Policy bears to the total amount of insurance placed on the goods from all sources and will return to the Assured an amount of premium proportionate to such reduction of liability.

D. It is agreed that nothing in this clause shall alter the intent or operation of the Interest Clause of this Policy.

51. NOTICE OF LOSS

In case of actual or expected loss or damage to the goods insured, it shall be reported to this Company or its claims representatives as soon as practicable upon knowledge by the Assured of the actual or   expected loss.

52. PAYMENT OF LOSS

Loss, if any, is to be paid within thirty (30) days of interest in the goods insured and loss thereto being established.

53. CONSTRUCTIVE TOTAL LOSS

The goods insured shall not be deemed a Constructive Total Loss unless they are reasonably abandoned on account of their actual total loss appearing to be unavoidable, or because the goods cannot be preserved from actual total loss without an expenditure which would exceed their value if the expenditure had been incurred.

54. PARTIAL LOSS

In case of partial loss by perils insured against, and notwithstanding any applicable statute to the contrary, there shall be a separation of sound and damaged goods insured and the amount of recoverable loss shall be determined by:

A. an agreed percentage of depreciation, in which event the Assured shall receive the agreed percentage of the insured value of the damaged goods insured, or, if there is no agreement,

B. sale of the damaged goods insured, in which event the Assured shall receive the difference between the insured value of the goods sold and the proceeds of the sale.

55. SUBROGATION

It is agreed that, on payment of any loss, the Assured shall assign and subrogate to this Company all their rights against third parties to the extent of such payments and shall permit suit to be brought in their name but at this Company's expense. The Assured further agrees to render all reasonable assistance in the prosecution of any suit. However, except in General Average, this Company shall not be subrogated to any rights and/or claims against the Assured's affiliates or subsidiaries.

56. IMPAIRMENT OF RECOVERY & RELEASED VALUE CONTRACTS OF CARRIAGE

A. In case of any agreement, act or omission of the Assured, prior to or subsequent to loss, whereby any right of recovery against any Carrier or Bailee is released, impaired or lost, which would on acceptance of abandonment or payment of loss by this Company have inured to its benefit, this Company shall pay for the loss only to the extent its right of recovery was not released, impaired or lost.

B. Notwithstanding the preceding paragraph, the Assured may accept from Carriers bills of lading, receipts or contracts of transportation containing a release or limitation of liability as to the value of the goods, without prejudice to this insurance.

57. DEMURRAGE CHARGES

If the Assured is instructed by this Company to hold an intermodal container, and if the Assured is assessed a late penalty and/or demurrage charge for holding the intermodal container past the return date, this Company will pay the late penalties and/or demurrage charges. The amount this Company will pay shall be the charges assessed from the time this Company directs the Assured to hold the container until the time this Company informs the Assured that the container can be released.

58. MACHINERY

At the option of the Assured, in case of loss or damage to any part of a machine, this Company will pay the proportion that the part lost or damaged bears to the insured value; or, this Company will pay for the cost and expense, including labor and forwarding charges, of replacing or repairing the lost or damaged part. Loss, if any, sustained by payment of additional duty on replacement parts shipped for damaged machinery shall only be recoverable if duty was insured with the original shipment of machinery.

In no event, however, shall this Company be liable for more than the insured value of the complete machine.

59. TIME FOR SUIT

No suit, action or proceeding for the recovery of any claim under this Policy shall be sustainable in any    court of law or equity unless commenced within one (1) year from the time loss occurred.  Provided, however, that if by the laws of the place where this Policy is issued, such limitation is invalid, then any    such claim shall be void unless such suit, action or proceeding be commenced within the shortest limit of time permitted by the laws of such place.

 

SECTION II:  DOMESTIC TRANSIT

1. GEOGRAPHIC LIMITS

This policy is extended to cover, subject to its terms and conditions, transit within and between the States of the United States and the District of Columbia.

2. CONVEYANCES

Attaching on shipments by any conveyance and, in all cases, including connecting conveyances.

3. LIMITS OF LIABILITY

This Company is not liable for more than $500,000 per any one truck or truck/trailer or rail car or aircraft or waterborne conveyance or in any one place at any one time, but in no event for more than $10,000 per any one package shipped by government or private mail or parcel post or parcel delivery service.

4. VALUATION

A. Valued at invoice value (premium included), including all charges in the invoice and including prepaid and/or guaranteed and/or advanced freight, if any; or

B. in the absence of an invoice, goods shall be valued at the actual cash value at destination on the date of shipment, but in the event of loss, less any charges saved which would have become payable upon delivery at destination.

5. PERILS

Shipments of general approved merchandise fully containerized per index of commodities covered by this Section are insured against all risk of physical loss or damage from any external cause.

DEDUCTIBLE

From each adjusted claim for loss or damage covered under this Section shall be deducted as stipulated in Clause 32 of Section 1 of this policy. each Bill of Lading separately insured, unless such loss or damage be caused by accident, burning, or collision of the conveyance.

6. REPORTING AND PAYMENT OF PREMIUM

Reporting and payment of premiums shall be in accordance with provisions of Clause 8 of Section I of   this Policy.

 

WAR RISKS ONLY

OPEN CARGO POLICY NO.  OCW91720800

American Institute War Clauses (January 1994)

 

ASSURED

The AGCS MARINE INSURANCE COMPANY, hereinafter referred to as this Company, in consideration of premiums as agreed to be paid, does insure, lost or not lost,

for account of whom it may concern, against WAR RISKS ONLY, in accordance with the terms and conditions hereinafter set forth.

LOSS PAYABLE

Any loss payable hereunder shall be payable in funds current in the United States of America, to the order of the Assured, thirty days after full proofs of loss and proofs of interest have been filed with this Company.

ATTACHMENT

This insurance shall attach as provided in Clause 4, upon all those shipments made on and after 03/01/2017 which are insured against marine risks under Policy No. OC91720800 of this Company, it being agreed that the description of such shipments, the valuations thereof, the voyage, the designation of the overseas Vessel (which shall be construed to include aircraft if included under the marine policy) on which the goods are to be carried and the ports and/or places of loading and discharge, as reported under the said Policy against   marine risks, shall be deemed incorporated herein. Notwithstanding the foregoing, this policy shall not cover purely domestic shipments by air between points in the United States of America (excluding Alaska and Hawaii).

LIMIT OF LIABILITY

This Company shall not be liable hereunder for more than the applicable limit set forth in the marine policy.

In cases where the total value(s) at risk on any one vessel exceed(s) the limit of liability as set forth in this Policy, the Assured agrees, nevertheless, to report to the Company full value(s) at risk and to pay premium thereon at agreed rates. The Assured further agrees that acceptance of such reports and premium by the Company shall not serve to revoke or to overrule the limit of liability set forth in this Policy; however, subject to the limit of liability, the Company in accepting these reports does agree to pay partial losses covered by this Policy without reduction by reason of any coinsurance which otherwise may have existed in the absence of this special agreement.

Subject to the provisions of Clause 4 of this Policy, should there be an accumulation of interests exceeding the above limit of liability by reason of any interruption of transit beyond the control of the Assured or by reason of any casualty, and/or after the interests have been discharged from the incoming overseas Vessel   at an intermediate port or place for on-carriage from that or any other port or place by another Vessel, and/or on the on-carrying overseas Vessel, this Policy shall attach for the full amount at risk (but in no event for more than twice the Policy limit which would be applicable to any one Vessel) provided written notice be given to this Company as soon as known to the Assured.

1.

(a) This insurance is only against the risks of capture, seizure, destruction or damage by men-of-war, piracy, takings at sea, arrests, restraints, detainments and other warlike operations and acts of kings, princes and peoples in prosecution of hostilities or in the application of sanctions under international agreements, whether before or after declaration of war and whether by a belligerent or otherwise, including factions engaged in civil war, revolution, rebellion or insurrection, or civil strife arising therefrom; the imposition of martial law, military or usurped power, and including the risks of aerial bombardment, floating or stationary mines and stray or derelict torpedoes. Warranted not to abandon (on any ground other than physical damage to ship and cargo) until after condemnation of the property insured.

(b) This insurance also covers, but only while the property is on board a waterborne conveyance, loss or damage to said property directly caused by governmental authorities acting for the public welfare to prevent or mitigate a pollution hazard or threat thereof, provided that the accident or occurrence creating the situation which required such governmental action would have resulted in a recoverable claim under this Policy (subject to all of its terms, conditions and warranties) if the property insured would have sustained physical damage as a result of such accident or occurrence.

2. Warranted free from any claim based upon loss of, or frustration of, the insured voyage or adventure caused by arrests, restraints or detainments.

3. This insurance does not cover any loss, damage or expense directly or indirectly arising from, contributed to, or caused by any of the following whether due to a peril insured against or otherwise:

(a) Commandeering, preemption, requisition or nationalization by the government (de facto or otherwise) of the country to or from which the goods are insured.

(b) Seizure or destruction under quarantine, environmental or customs regulations.

(c) Delay, deterioration and/or loss of market.

(d) Nuclear reaction, radiation or radioactive contamination, regardless of how it was caused.

4.

(a) The insurance against the risks enumerated in Clause 1, except the risk of floating or stationary mines and stray or derelict torpedoes, floating or submerged referred to in (b) below, shall not attach to the interest hereby insured or to any part thereof

(i.) prior to being on board an overseas Vessel (for the purpose of this Clause 4 an overseas Vessel shall be deemed to mean a Vessel carrying the interest from one port or place to another where such voyage involves a sea passage by that Vessel).

(ii.) after being discharged overside from an overseas Vessel at the intended port or place of    discharge, or after the expiry of 15 days from midnight of the day of arrival of the overseas Vessel at    the intended port or place of discharge, whichever shall first occur.

(iii.) after expiry of 15 days from midnight of the day of arrival of the overseas Vessel at an intermediate port or place to discharge the interest for on-carriage from that or any other port or place by another overseas Vessel, but shall reattach as the interest is loaded on the on-carrying overseas Vessel. During the said period of 15 days the insurance remains in force whether the interest is awaiting transit or in transit between overseas Vessels.

(iv.) For the purposes of this Clause 4, arrival at the intended port or place of discharge shall be deemed to mean that time when the overseas Vessel first berths, anchors, moors or is secured in an area subject to regulation by the authorities of such port or place.

(b) The insurance against the risks of floating or stationary mines or derelict torpedoes, floating or submerged, attaches as the interest hereby insured is first loaded on a lighter, craft or vessel after leaving   the warehouse at point of shipment in transit for the destination declared hereunder, and ceases to attach as the interest is finally landed from the vessel, craft or lighter prior to delivery to warehouse at such destination.

(c) If the contract of affreightment is terminated at a port or place other than the destination named therein such port or place shall be deemed the intended port or place of discharge for the purpose of this Clause 4.

(d) Shipments by mail, if covered by this Policy, are insured continuously from the time of leaving the sender's premises until delivered to the place of address.

(e) Shipments by air (other than as air mail), if covered by this Policy are insured subject to the same terms and Conditions as shipments by overseas Vessel.

(f) It is a condition of this insurance that the Assured shall act with reasonable dispatch in all circumstances within their control.

(g) If anything contained in this Policy shall be inconsistent with Clause 4 it shall to the extent of such inconsistency be null and void.

5. This insurance shall not be vitiated by deviation, overcarriage, change of voyage, or by any error or unintentional omission in the description of interest, vessel or voyage, provided the same be communicated to the Company as soon as known to the Assured and an additional premium paid if required.

6. And in case of any loss or misfortune, it shall be lawful and necessary to and for the Assured, his or their factors, servants and assigns to sue, labor and travel for, in and about the defense, safeguard and recovery   of the said goods, and merchandises, or any part thereof, without prejudice to this insurance; nor shall the acts of the Assured or Company, in recovering, saving and preserving the property insured, in case of disaster, be considered a waiver or an acceptance of abandonment; and to the charges whereof, the said Company will contribute according to the rate and quantity of the sum hereby insured.

7. General Average and Salvage Charges payable according to United States laws and usage and/or as per Foreign Statement and/or as per York-Antwerp Rules (as prescribed in whole or in part) if in accordance with the Contract of Affreightment.

8. It is agreed that the reports of shipments made under the Policy against marine risks mentioned above shall be deemed to be reports under this Policy also, and the Assured agrees to pay premiums on all shipments insured under this Policy at the war risk rates of the Company as fixed from time to time.

9. No claim shall be payable hereunder which arises from collision, contact with any fixed or floating object (other than a mine or torpedo), stranding, heavy weather or fire unless caused directly (and independently of the nature of the voyage or service which the Vessel concerned or, in case of a collision, any other Vessel involved therein, is performing) by a hostile act by or against a belligerent power; and for the purposes of the paragraph "power" includes any authority maintaining naval, military or air forces in association with a power.

10. No recovery for a Constructive Total Loss shall be had hereunder unless the property is reasonably abandoned on account of its actual total loss appearing to be unavoidable, or because it cannot be preserved from actual total loss without an expenditure which would exceed its value if the expenditure had been incurred.

11. It is agreed that this Policy is a separate and wholly independent contract and is not subject to any terms or conditions of the Policy against marine risks above mentioned (whether physically attached thereto or not) except as such terms and conditions shall have been expressly incorporated herein by reference.

12. This insurance may be canceled by either party upon forty-eight hours written, telegraphic or telefaxed notice to the other party, but such cancellation shall not affect any shipment on which this insurance has attached under the terms of Clause 4 hereof prior to the effective date of such notice. Shipments on which this insurance has not so attached but for which, prior to the effective date of such notice, bills of lading have been issued and (in the case of exports) Certificates or special policies have been issued and negotiated,   shall be covered from the time of loading on the overseas Vessel, as provided in Clause 4, at the rates of the Company, provided that, prior to said effective date, such shipments were at risk of the Assured and were covered under the said Policy against marine risks.

In the event of loss which may give rise to a claim under this Policy, prompt notice shall be given to this Company.

 

ENDORSEMENT NO. 1

S.R.& C.C. ENDORSEMENT (FORM NO. 12A)

 

Attached to and made part of Open Ocean Cargo Policy and, if purchased, Storage coverage of Policy No. OC 91720800 of the AGCS MARINE INSURANCE COMPANY.

Effective with respect to shipments made on or after: 03/01/2017

AIMU

Endorsement for Open Policies (Cargo) Strikes, Riots & Civil Commotions (January 1, 2008)

THIS INSURANCE ALSO COVERS:

(1) Physical loss of or damage to property insured directly caused by strikers, locked-out workmen, or persons taking part in labor disturbances or riots or civil commotions;

(2) Physical loss of or damage to the property insured directly caused by vandalism, sabotage or malicious acts; and,

(3) Physical loss of or damage to the property insured directly caused by the act or acts of one or more persons, whether or not agents of a sovereign power, carried out for political, terroristic or ideological purposes and whether any loss, damage or expense resulting there from is accidental or intentional; PROVIDED that any claim to be recoverable under this subsection (3) be not excluded by the Free of Capture & Seizure Warranty, Extended Radioactive Contamination Exclusion Clause (Extended RACE Clause) or Chemical, Biological, Bio-Chemical and Electromagnetic Exclusion Clause (CBE Clause) in the Policy to which this endorsement is attached. Notwithstanding the foregoing, coverage under this subsection (3) is conditional upon the property insured being in the ordinary course of transit and, in any event, shall terminate:

(a) As per the Warehouse to Warehouse Clause, Marine Extension Clause, 60 Day South American Clause and any other clauses relating to duration of transit contained in or endorsed onto the Policy; or,

(b) on delivery to the consignee’s or other final warehouse or place of storage at the destination named herein; or,

(c) on delivery to any warehouse or place of storage whether prior to or at the destination named herein, which the Assured elects to use either for storage other than in the ordinary course of transit or for allocation or distribution; or,

(d) in respect of marine transits, on the expiry of 60 days after completion of discharge overside of the property insured from the vessel at the port of discharge; or,

(e) in respect of air transits, on the expiry of 30 days after unloading the property insured from the aircraft at the place of discharge; whichever shall first occur.

Notwithstanding the foregoing, nothing in this clause excludes coverage for insured losses, which are otherwise covered by this insurance, caused by certified acts of terrorism, as defined in the Terrorism Risk Insurance Act (P.L. #107-297) or any subsequent amendments or endorsements to the Act.

While the property insured is at risk under the terms and conditions of this insurance within the United States of America, the Commonwealth of Puerto Rico, the U.S. Virgin Islands and Canada, this insurance is extended to cover physical loss of or damage to the property insured directly 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 operation of military or naval armed forces in the country where the described property is situated.

Nothing in this endorsement shall be construed to cover any loss, damage or expense directly or indirectly arising from, contributed to or caused by any of the following, whether due to a peril insured against or otherwise:

(a) change in temperature or humidity;

(b) the absence, shortage, or withholding of power, fuel, or labor of any description whatsoever during any strike, lockout, labor disturbance, riot or civil commotion;

(c) loss of market or loss, damage or deterioration arising from delay;

(d) hostilities, warlike operations, civil war, revolution, rebellion or insurrection, or civil strife arising therefrom, except to the limited extent that the acts of certain agents acting secretly have been expressly covered above; or,

(e) nuclear reaction, radiation or radioactive contamination, as per Extended RACE Clause;

(f) chemical, biological, bio-chemical or electromagnetic weapon, device, agent or material, as per CBE Clause.

The Assured agrees to report all shipments attaching under this cover and to pay premiums therefore at the rates established by the Assurer from time to time.

This endorsement may be canceled by either party upon forty-eight hours written, telegraphic, telefaxed, or electronic notice to the other party, but such cancellation shall not affect any risks which have already attached hereunder.

All other terms and conditions remain unchanged.

 

ENDORSEMENT NO. 2

AGCS DISCLOSURE PURSUANT TO TERRORISM RISK INSURANCE ACT

 

Attached to and made part of Policy No. OC91720800 of the AGCS MARINE INSURANCE COMPANY.

Effective: 03/01/2017

Disclosure Of Premium And Federal Share of Insured Losses (Pursuant To Terrorism Risk Insurance Act) – TR01 12 07

This Endorsement is attached to and made part of your policy in response to the disclosure requirements of the Terrorism Risk Insurance Act.

A. Disclosure Of Premium

In accordance with the federal Terrorism Risk Insurance Act, as amended, we are required to provide you with a notice disclosing the portion of your premium, if any, attributable to coverage for terrorist acts certified under the Terrorism Risk Insurance Act, as amended.  The portion of your premium attributable to such coverage is shown in the policy Declarations. This premium is based on the rates in effect at the time of policy issuance or policy anniversary and was calculated for the full term of the current policy period.

B. Disclosure Of Federal Participation In Payment Of Terrorism Losses

The United States Government, Department of the Treasury, will pay a share of terrorism losses insured under the federal program.   The federal share equals 85% through 2015; 84% beginning on January 1, 2016; 83% beginning on January 1, 2017; 82% beginning on January 1, 2018; 81% beginning on January    1, 2019; and 80% beginning on January 1, 2020; of that portion of the amount of such insured losses that exceeds the applicable insurer retention.  However, if aggregate insured losses attributable to terrorist acts certified under the Terrorism Risk Insurance Act, as amended, exceed $100 billion in a calendar year, the Treasury shall not make any payment for any portion of the amount of such losses that exceed $100 billion.

C. Cap On Insurer Participation In Payment Of Terrorism Losses

If aggregate insured losses attributable to terrorist acts certified under the Terrorism Risk Insurance Act, as amended, exceed $100 billion in a calendar year and we have met our insurer deductible under the Terrorism Risk Insurance Act, as amended, then we shall not be liable for the payment of any portion of the amount of such losses that exceeds $100 billion, and in such case insured losses up to that amount are subject to pro rata allocation in accordance with procedures established by the Secretary of the Treasury.

D. Definitions

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 accordance with the provisions of the federal Terrorism Risk Insurance Act, to be an act of terrorism pursuant to such Act, as amended. The criteria contained in the Terrorism Risk Insurance Act, as amended, for a certified act of terrorism include the following:

1. The act resulted in insured losses in excess of $5 million in the aggregate, attributable to all types of insurance subject to the Terrorism Risk Insurance Act, as amended; and

2. The act resulted in damage:

a. Within the United States (including its territories and possessions and Puerto Rico); or

b. Outside the United States in the case of:

(1) An air carrier (as defined in Section 40102 of title 49, United States code) or United states flag vessel (or a vessel based principally in the United States, on which United States income tax is paid and whose insurance coverage is subject to regulation in the United States) regardless of where the loss occurs; or

(2) The premises of any United States mission; and

3. 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 as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion.

All other terms and conditions of the policy remain unchanged.