Who Is An Insured 2. Coverage 2. Extension Of Coverage 2. Exclusions 3. Duration Of Insurance 4. Limits Of Insurance 5. Loss Payment Basis 5

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1 Contract Table Of Contents Section Page No. Who Is An Insured 2 Coverage 2 Extension Of Coverage 2 Exclusions 3 Duration Of Insurance 4 O C E A N C A R G O C O N T R A C T Limits Of Insurance 5 Loss Payment Basis 5 Loss Payment Basis Exceptions 8 Conditions 8 Definitions 9 W A R R I S K Form (Ed. 2-06) Contract Page 1 of 10

2 ÄäÄãÄèÄíÃàÃáÃàÃàÂêÀàÀàÀàÀçÀàÀàÀëÈêÀïÀåÃçÃäÃãÃæÄáÅàÀà ÄäÄãÄèÄíÃàÃáÃàÃàÂêÀàÀàÀàÀàÀàÀàÀàÀàÀïÀæ War Risk Contract Words and phrases that appear in bold print have special meaning and are defined in the Definitions section of this contract. Throughout this contract the words "you" and "your" refer to the Named Insured shown in the Declarations of this policy, and any other person or organization qualifying as a Named Insured under this contract. The words "we," "us" and "our" refer to the company providing this insurance. Who Is An Insured The Named Insured shown in the Declarations is an Insured under this policy. The following organizations also qualify as Insureds: a subsidiary organization of the first Named Insured shown in the Declarations of which, at the beginning of the policy period and at the time of loss, such first Named Insured controls, either directly or indirectly, more than fifty (50) percent of the interest entitled to vote generally in the election of the governing body of such organization; or a subsidiary organization of the first Named Insured shown in the Declarations that such first Named Insured acquires or forms during the policy period, if at the time of loss such first Named Insured controls, either directly or indirectly, more than fifty (50) percent of the interests entitled to vote generally in the election of the governing body of such organization. Coverage War Risk We will pay for direct physical loss or damage to merchandise in transit caused by or resulting from a war risk peril, whether before or after declaration of a state of war, not to exceed the applicable Limit Of Insurance for War Risk shown in the Declarations. Extension Of Coverage Deliberate Damage/Pollution Hazard The following Extension Of Coverage is included under your coverage for War Risk and is subject to the applicable Limit Of Insurance for War Risk shown in the Declarations. We will pay for direct physical loss or damage to merchandise in transit on board a waterborne conveyance directly caused by or resulting from action of a governmental authority to prevent or mitigate a pollution hazard or threat thereof, provided the pollution hazard or threat thereof is the direct result of a war risk peril. Form (Ed. 2-06) Contract Page 2 of 10

3 Exclusions Arrests This insurance does not apply to loss, damage or expense caused by or resulting from frustration of the insured voyage caused by or resulting from arrests, restraints or detainments. This exclusion does not apply to direct physical loss or damage to merchandise in transit caused by or resulting from a war risk peril. Collision This insurance does not apply to loss, damage or expense caused by or resulting from: collision; contact with any fixed or floating object (other than a mine or torpedo); stranding of a vessel; heavy weather; or fire. This exclusion does not apply if such collision, contact, stranding, heavy weather or fire is directly caused by or results from a hostile act by or against a belligerent power or a naval, military or air force maintained by any authority in association with such power, provided: the voyage is not being made to undertake such hostile act; the vessel is not participating in such hostile act; and in the case of collision with another vessel, such other vessel is not participating in such hostile act. Commandeering This insurance does not apply to loss, damage or expense caused by or resulting from commandeering, preemption, requisition or nationalization by the government (defacto or otherwise) of the country to or from which merchandise is being shipped. This exclusion does not apply to direct physical loss or damage to merchandise in transit caused by or resulting from a war risk peril. Delay This insurance does not apply to loss of market or loss of use or loss, damage or expense caused by or resulting from delay. Nuclear Hazard This insurance does not apply to loss, damage or expense directly or indirectly caused by or resulting from: ionising radiation from, or contamination by, radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel; the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof; any weapon or other device employing atomic or nuclear fission or fusion or other like reaction or radioactive force or matter; or Form (Ed. 2-06) Contract Page 3 of 10

4 Exclusions Nuclear Hazard the radioactive, toxic, explosive or other hazardous or contaminating properties of any radioactive matter. This exclusion does not apply to loss, damage or expense caused by or resulting from 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. Seizure This insurance does not apply to loss, damage or expense caused by or resulting from seizure or destruction pursuant to quarantine, environmental or customs regulations. This exclusion does not apply to direct physical loss or damage to merchandise in transit caused by or resulting from a war risk peril. Duration Of Insurance A. This insurance applies beginning at the time the merchandise is loaded on the overseas vessel at the port or place of origin and continues until: 1. the earlier of: a. the time the merchandise has been discharged overside from an overseas vessel at the final insured destination; or b. 15 days pass from 12:01 am local time on the day of arrival of the overseas vessel at the final insured destination; or 2. expiration of 15 days from 12:01 am of the day of arrival of the overseas vessel at an intermediate point for discharge of the merchandise in transit for on-carriage from that or any other point by another overseas vessel. In such an event, this insurance shall resume when the merchandise begins to be loaded on the oncarrying overseas vessel, but only to the extent such merchandise is on the vessel. Paragraph A. does not apply to floating or stationary mines and stray or derelict torpedoes. B. With respect to floating or stationary mines or stray or derelict torpedoes, this insurance applies to merchandise in transit beginning at the time such merchandise is loaded on a vessel after leaving the warehouse at point of origin for shipment to the final insured destination. This insurance continues to apply until the merchandise in transit is discharged from the vessel prior to delivery to the intended warehouse at the final insured destination. C. If the contract of affreightment applicable to the merchandise in transit is terminated at a port or place other than the final insured destination, such port or place shall be deemed the final insured destination. D. This insurance applies to merchandise in transit: 1. being shipped by mail, from the time it leaves the sender s premises until delivered to the place of address; or Form (Ed. 2-06) Contract Page 4 of 10

5 Duration Of Insurance 2. being shipped by air (other than by air mail), in the same manner as shipments by overseas vessels. It is a condition of this insurance there be no interruption, suspension or delay in transit, unless due to circumstances beyond your (or the shippers, assignee s or consignee s) control and that you take all reasonable action to reduce or prevent such interruption, suspension or delay. For the purposes of this Duration Of Insurance provision arrival means the time when the overseas vessel first berths, anchors, moors or is secured at a point where it would become subject to regulations by the authorities of the jurisdiction of that point. Limits Of Insurance The most we will pay in any one occurrence is the amount of loss, damage or expense, not to exceed the applicable Limit of Insurance for War Risk shown in the Declarations. Loss Payment Basis Invoice Freight And Advance The following Loss Payment Basis provisions apply to all coverages contained within this policy, unless otherwise stated. Subject to the applicable Limit Of Insurance shown in the Declarations: covered property is valued in accordance with the applicable Loss Payment Basis shown under Merchandise Insured in the Declarations and described below; or as otherwise stated under Loss Payment Basis Exceptions. In the event that you are able to obtain a refund of any prepaid, advanced or guaranteed ocean or air freight, the amount of your claim shall be reduced accordingly. You may insure covered property in foreign currencies. If you do, we will pay for loss or damage in the U.S. dollar equivalent of such currency using the free rate of exchange as published by the Wall Street Journal: on the date of invoice; or if the merchandise is not subject to an invoice, on the date this insurance attaches to such merchandise. When the Loss Payment Basis shown in the Declarations is Invoice, Freight and Advance, lost or damaged merchandise will be valued at the amount shown in the invoice (including all charges) plus any prepaid, advanced or guaranteed ocean or air freight not included in the invoice, plus the applicable Advance percentage shown in the Declarations. Pre-Sold Selling Price When the Loss Payment Basis shown in the Declarations is Pre-Sold Selling Price, lost or damaged merchandise will be valued as follows: when the merchandise has been sold by you prior to shipment from the point of origin, it will be valued at your selling price, as established by documented sales invoices, less unincurred expenses or charges at the time of loss or damage; or when the merchandise to which this insurance applies has not been sold by you prior to shipment, it will be valued at the amount of invoice (including all charges), plus any prepaid, advanced or guaranteed ocean or air freight not included in the invoice, plus the applicable Advance percentage shown in the Declarations. Form (Ed. 2-06) Contract Page 5 of 10

6 Loss Payment Basis Selling Price When the Loss Payment Basis shown in the Declarations is Selling Price, lost or damaged merchandise will be valued as follows: when the merchandise has been sold by you prior to shipment from the point of origin, it will be valued at your selling price, as established by documented sales invoices, less unincurred expenses or charges at the time of loss or damage; or when the merchandise has not been sold prior to shipment, it will be valued at your selling price as established in price catalogs or similar listings you published prior to the date of shipment from the point of origin, less any normal discounts, unincurred expenses or charges. Market Value When the Loss Payment Basis shown in the Declarations is Market Value, lost or damaged merchandise will be valued at the highest market value, as determined by the spot market in New York, New York, for the same type of merchandise during the period between: in the case of arrival of the vessel, the date of arrival at the final insured destination and the seventh business day (Saturdays, Sundays and Holidays excluded) following the completion of discharge from the overseas vessel; or in the case of non arrival of the vessel, the due date of arrival of the vessel at the intended final insured destination and the fourteenth business day (Saturdays, Sundays and Holidays excluded) after the due date of arrival. Actual Cash Value When the Loss Payment Basis shown in the Declarations is Actual Cash Value, lost or damaged merchandise will be valued at the actual cash value at final insured destination on the date of loss or damage plus any prepaid, advance or guaranteed freight, less any unincurred expenses or charges. Other When the Loss Payment Basis shown in the Declarations is Other, lost or damaged merchandise will be valued: at the amount of invoice, including all charges plus any prepaid, advanced or guaranteed ocean or air freight not included in the invoice, plus the applicable Advance percentage shown in the Declarations; at, if not shipped subject to an invoice (including inter-company shipments), the actual cash value at point of destination on the date of loss or damage plus any prepaid, advanced or guaranteed freight, less any unincurred expenses or charges; or as shown in an endorsement attached to this policy. Brands And Trademarks In the event of loss or damage to merchandise, you have two options when: you do not want to sell your lost or damaged merchandise under your brand, label or trademark; or the owner of any lost or damaged merchandise for which you have agreed to provide insurance of the type provided by this policy does not want to sell the lost or damaged merchandise under the owner s brand, label or trademark, Form (Ed. 2-06) Contract Page 6 of 10

7 Loss Payment Basis Brands And Trademarks even though the lost or damaged merchandise has salvage value. You may: remove the brand, label or trademark and then relabel the lost or damaged merchandise to comply with the law; or label the lost or damaged merchandise as salvage but, in doing so, cause no further loss or damage to the merchandise. In either case, valuation of such merchandise will include the difference between: the salvage value of the lost or damaged merchandise with the brand, label or trademark attached; and the salvage value of the lost or damaged merchandise with the brand, label or trademark removed. Constructive Total Loss In the event lost or damaged merchandise is reasonably abandoned because: actual total loss reasonably appears to be unavoidable; or the merchandise cannot be preserved from actual total loss without a reasonable expenditure which would exceed its value if the expenditure had been incurred, we will pay the covered value of such merchandise. Labels In case of covered loss or damage affecting labels, capsules, wrappers, or packaging, we will pay: the amount reasonably incurred to replace such labels, capsules, wrappers or packaging; and the cost of reconditioning the merchandise. In no event will we pay for more than the lesser of: the covered value of the lost or damaged merchandise; or the applicable Limit Of Insurance shown in the Declarations. Machinery In case of partial loss or damage to a part of merchandise: ready for sale or use at the time of loss or damage; and which is a machine or manufactured product consisting of several parts, we will pay for: the proportion that the covered value of that part of such merchandise bears to the covered value of all such merchandise; or at your option, the cost and expense (including labor and forwarding charges), to repair or replace the lost or damaged part, but not including additional import duties (unless such additional duty is included in the values you report). In no event will we pay more than the lesser of: the covered value of such merchandise; or the applicable Limit Of Insurance shown in the Declarations. Form (Ed. 2-06) Contract Page 7 of 10

8 Loss Payment Basis Partial Loss In case of partial loss or damage, you must separate damaged and undamaged merchandise and use reasonable efforts to protect the undamaged merchandise from loss or damage. We will determine the amount of loss by: applying a percentage of depreciation, agreed to by you and us at the time of loss or damage; or in the event we cannot agree, the difference between the covered value of the loss or damaged merchandise and the actual value received after sale of such merchandise. Loss Payment Basis Exceptions Accumulation In the event of loss or damage, should there be an accumulation of insured merchandise on any one conveyance or at any one place at any one time: because of an interruption in transit beyond your control; or at a transshipping point, we will pay the covered value of such lost or damaged merchandise, not to exceed 200% of the applicable Limit Of Insurance for Any One Conveyance, provided you give us written notice as soon as possible after you become aware of such accumulation of merchandise. Contractual Amount In the event of loss or damage, if you are required by the terms of a written contract executed prior to shipment from the point of origin, to insure merchandise for a specific amount, we will value such merchandise at that amount. Conditions The Conditions applicable to this contract are contained in the Common Policy Conditions included in this policy. Form (Ed. 2-06) Contract Page 8 of 10

9 Definitions Merchandise In Transit WHEN USED WITH RESPECT TO INSURANCE UNDER THIS CONTRACT. Merchandise in transit means: your business personal property; or business personal property of others for which you have agreed to provide insurance of the type provided by this policy, while being: A. shipped by or consigned to you, or shipped by or consigned to others for your account which are: 1. sold by you on terms of sale which include ocean marine insurance, or on terms of sale which obligate you to deliver the merchandise to or within the country of destination; 2. purchased by you on terms of sale which do not include ocean marine insurance, or on terms of sale which obligate you to take delivery of the merchandise prior to arrival at or within the country of destination; or 3. purchased or sold by you when written instructions to provide ocean marine insurance are received by you and agreed to prior to shipment from place of origin (including shipments to or from your subsidiaries regardless of terms of sale); and B. shipped by metal-hulled, self-propelled vessels, aircraft, and by connecting conveyances by sea, land or air, including by messenger if required. Merchandise in transit does not mean: contraband or other personal property in the course of illegal transportation or trade; currency, coins, bank notes or bullion; food stamps; checks or drafts drawn on any account; travelers checks, registered checks and money orders, held for sale to the public; all negotiable and nonnegotiable instruments or contracts that represent either money or other property held by you in any capacity; revenue and other stamps in current use; tokens; or tickets. Shipping includes loading and unloading. Form (Ed. 2-06) Contract Page 9 of 10

10 Definitions WHEN USED WITH RESPECT TO INSURANCE UNDER THIS CONTRACT. State Of War State of war means: civil or other war; revolution; rebellion; insurrection; imposition of martial or military law; usurpation of sovereign authority; or civil strife arising out of the foregoing, whether by a belligerent or otherwise. War Risk Peril A. War risk peril means: 1. capture, seizure, or acts of destruction by men-of-war; 2. piracy; 3. takings at sea; 4. arrests, restraints, detainments and other warlike operations; or 5. acts of Kings, princes and peoples in prosecution of hostilities or in the application of sanctions under international agreements. B. War risk peril includes: 1. aerial bombs; 2. floating or stationary mines; or 3. stray or derelict torpedoes, except when the merchandise in transit is abandoned prior to condemnation for any reason other than direct physical loss or damage to the vessel or its cargo. Form (Ed. 2-06) Contract Page 10 of 10