SENDINGS INSURANCE I. WARRANTY REGARDING SENDINGS REGISTER II. DECLARATIONS III. CONVEYANCES IV. WARRANTY CLAUSE V. VOYAGES

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1 GENERAL INSURANCE DIVISION The Phoenix Insurance Company Ltd. Main Office: 53 Hashalom RD. Givaataim Fax: Marin department: /30 fax: SENDINGS INSURANCE Method of Sendings: Overseas Sendings and Sendings within one country by the following methods are covered hereunder (subject to the limits listed in the schedual): 1. Registered Airmail (or Registered Mail within one country). 2. Airfreight with value declared as per para. VII below. 3. Personal Conveyance, Brinks Courier Services Ltd., Secured Airfreight (Brinks) Controlled and Airfreight (Malca-Amit). Sendings by ANY OTHER METHODS are NOT covered, unless advised and agreed by Insurers and confirmation given by The Phoenix Insurance Company Ltd. prior to dispatch. Sendings by controlled Airfreight (Malca-Amit) and by Ferrari and Sendings by Secured Airfreight (Brinks). At special terms and conditions as agreed and/or from time to time applying as agreed by Insurers. I. WARRANTY REGARDING SENDINGS REGISTER WARRANTED that the Assured will keep a Sendings Register in which all details of Raw and/or Finished Diamonds, Jewellery and the like dispatched by Airfreight, Brink s Courier Service, Personal Conveyance or Registered Airmail will be recorded. This register may at any time be examined by Insurer's representative. IT IS FURTHER NOTED AND AGREED that the Assured hereby gives permission to Insurers and/or their representative to obtain any information whatsoever concerning shipments made to or by the Assured (including return shipments), from Diamond Controllers office without further reference to the Assured. II. DECLARATIONS THE ASSURED will submit to the Insurers or their representatives declarations of all their Sendings on demand. The declarations will detail the countries and show the sum insured and the method of shipment. III. CONVEYANCES Agreed to include (but excluding infidelity other than for professional carriers) personal conveyance by Directors, Partners, or their relatives or other responsible persons whether employed by the Assured or otherwise to whom the Insured Interest is entrusted by the Assured. Period at risk after arrival not to exceed 24 hours, but warranted in safes overnight when residing in premises. Including also risk while in customs prior to handing over to person to whom the Insured Interest is entrusted. IV. WARRANTY CLAUSE Notwithstanding anything contained herein to the contrary no liability shall be attached for burglary or theft of property covered hereunder whilst in the above mentioned dwelling houses whenever the same is left without responsible person therein, unless such property is contained in a locked safe approved by underwriters at the time of loss. Private Dwelling House shall be attended and goods are to be hidden at all times. V. VOYAGES A Cover commences from time of leaving the premises of the sender for conveyance by any method to a Post Office or other carrier or conveyance and continues until delivered to consignee s premises whether by employees of the Post Office or by the consignees or by their employees or by others. Also to cover Insured Interest at Government Departments, Customs, Appraisers and other places in the usual course of handling. B C Subject to Clause (A) above, where Insured Interest is addressed directly to the consignee, cover continues until arrival at the address named in the declaration, so that the goods remain covered during clearance from the customs by forwarding agents or other responsible parties employed by the consignee. Notwithstanding the provisions of the above Clause referring to conveyances personally conveyed Insured Interest handed over to Customs, Bank, etc. is covered until taken up by consignee and as provided in Clause (B) above. 1

2 VI. GENERAL CONDITIONS Against loss of or damage to the Insured Interest from whatever cause arising, including War (whether declared or not), Riots, Strikes and Civil Commotion subject to Institute Clauses in force at time of sending as far as applicable. Also to cover confiscation and expropriation in respect of overseas Sendings in the terms of the attached wording warranted all shipments for each Assured are also insured hereunder for both Marine and War Risks. Insurers to have the right of subrogation for loss paid under this Cover. Abnormal delay not covered by the Institute Cargo Clauses (with average) held covered at a premium to be agreed and reforwarding of parcels held covered at rates to be arranged. VII. VALUATION CHARGES AND RATINGS A Sendings valued up to US$ 25,000.- to be declared in full to Airlines and a valuation charge paid. B C D Sendings valued over US$ 25,000.- with no less than 75% of insured value or US$ 25,000.- whichever is the greater declared to Airlines and valuation charge paid. When Airline valuation share is 4 (four) or 5 (five) permille only 20% (twenty percent) of 10% (ten percent) respectively to insured value (or US$ 5,000.- whichever is the greater) to be declared to Airlines and valuation charge paid accordingly. Items (a) and (b) above apply when Airlines valuation charge is 1 (one) permille. Transshipment at additional 0.05% each transshipment. E F G Personally accompanied Sendings by Air to be rated at Airfreight rates. Sendings by Airfreight N.V.D. from Israel to Italy, Central and South America and vice versa are covered at Registered Airmail rates with a surcharge of 0.125% for direct flights 0.25% when transshipping Reshipment by Registered Airmail or Airfreight at rates to be agreed. H Sendings by any other means not covered unless advised and agreed prior to dispatch but the Assured is held covered provided he or the Bank has given written instructions that the Sendings are to be made by one of the specified methods, BUT agreed that when the normal methods of Sendings are temporarily suspended Sendings by other methods are covered at rates to be agreed. Premium Adjustment: Any deposit premium paid hereon is only provisional and is subject to adjustment on the basis that the Assured will render declarations as defined in item II on page 1 every three months or otherwise as may be agreed with The Phoenix Insurance Company Ltd., giving details of all their Sendings and the aggregate values-dispatched during currency of Policy in respect of such Sendings and premium to be calculated on such values at current market rates prevailing at the date of the Sendings. Should this premium exceed the provisional premium paid at inception the Assured promises to pay the difference. VIII. SENDINGS CARRIED BY BRINKS INC. It is hereby declared and agreed that the Policy extends to cover also Sendings of diamonds carried by Brinks Inc. and/or Brinks (Israel) Ltd. and/or Couriers Services Ltd. and/or Sub-contractors to Belgium, Holland, Britain, Switzerland, U.S.A. and Canada. It is further declared and agreed to include as Joint Assureds: Brinks Inc., Brinks (Israel) Ltd. and/or Couriers Services Ltd. and/or Contractors and/or Sub-Contractors and waive right of recourse against any other Insurance carried by them. No claim of any one insured shall be defeated by any act or default of the other Co-Insureds. IX. INSURED INTEREST Diamonds, Precious and Semi-Precious Stones, Pearls, Precious Metals of all kinds and in whatsoever form and articles made therefrom, Jewellery, Money (i.e. currency, coin, bank notes), Securities, Stamps, Documents and Papers of value. Other valuables held covered at rates to be agreed. 2

3 X. EXCLUSIONS Loss of or damage to interest insured hereunder while in any vehicle, unless at the time the loss or damage occurs such vehicle is attended by either the Assured or a person in the employment of the Assured or whose duty it is to attend the vehicle on behalf of the Assured, provided that the Assured or such a person is inside the vehicle. EXCLUDING DEPRECIATION EXCLUDING INFIDELITY XI. MILLENNIUM EXCLUSION CLAUSE THIS POLICY DOES NOT COVER: 1 Loss, damage, cost, claim or expense, whether preventative, remedial or otherwise, directly or indirectly arising out of or relating to: (a) the calculation, comparison, differentiation, sequencing or processing of data involving the date change to the year 2000, or any other date change, including leap year calculations, by any computer system, hardware, program or software and/or any microchip, integrated circuit or similar device in computer equipment or non-computer equipment, whether the property of the insured or not; or (b) any change, alteration, or modification involving the date change to the year 2000, or any other date change, including leap year calculations to any such computer system, hardware, program or software and/or any microchip, integrated circuit or similar device in computer equipment or non-computer equipment, whether the property of the insured or not. This clause applies regardless of any other cause or event that contributes concurrently or in any sequence to the loss, damage, cost, claim or expense. I. ALL RISKS AND SAFE DELIVERY CLAUSE Risks to commence at the moment the interest leaves the office of the senders and to continue until safely delivered into the consignee premises, and to include all and every risk of every kind from beginning to end. II. SALVAGE AND RECOVERY CLAUSE All Salvages, recoveries and payment recovered or received subsequent to a loss settlement under this Policy shall be applied as if recovered or received prior to the said settlement and all necessary adjustments shall be made by the parties hereto. III. CANCELLATION CLAUSE This Policy may be cancelled at any time at the request of the Insured in writing to the Insurer which effected the Insurance, and the premium hereon shall be adjusted on the basis of the Insurers receiving or retaining the customary short term tariff: for an insurance period of up to seven days prior to cancelation, or if the insurance period has not commenced 5% of the annual premium; for any period exceeding the seven days in which the policy was in force 5% of the annual premium and an additional premium of 0.3% per day for any day the policy was in force starting from the 8th day. This Policy may also be cancelled by or on behalf of Insurers by 30 days notice given in writing to the Insured at his last known address, and the premium hereon shall be adjusted on the basis of the Insurers receiving or retaining pro-rata tariff: for an insurance period of up to seven days prior to cancelation, or if the insurance period has not commenced 5% of the annual premium; for any period exceeding the seven days in which the policy was in force 5% of the annual premium and an additional premium of 0.3% per day for any day the policy was in force starting from the 8th day. Notice shall be deemed to be duly received in the course of post if sent by prepaid letter post properly addressed. IV. INSTITUTE WAR CANCELLATION CLAUSE The inclusion in this contract of cover against war risks (as defined in Clause No.1 of the Institute War Clause) may be cancelled by either the Insurers or the Assured except in respect of any insurances against the said risks which shall have attached in accordance with the cover granted in the Institute War Clauses before the cancellation becomes effective. Such cancellation shall however only become effective on the expiration of seven days from midnight of the day on which notice of the cancellation is issued by or to Insurers. V. FOREIGN CURRENCY CLAUSE This Insurance has been effected in foreign currency subject to confirmation by the Controller of Diamonds. It is understood and agreed that if foreign currency is allocated by the Controller - then the Insured shall pay the countervalue of the foreign currency allocated according to the official rate of exchange applicable on the day of remittance of the premium to Insurers abroad. It is further noted and agreed that in the event of the Controller of Diamonds or Controller of Foreign Exchange not allocating foreign currency for remittance to Insurers, the Insured undertakes to pay the premium in foreign currency and to obtain for this purpose such confirmation and/or authorizations as are required, according to the current regulations. 3

4 VI. SERVICE OF SUIT CLAUSE (ISRAEL) This insurance shall be governed by Israeli Law and the Israeli Courts shall have exclusive jurisdiction in any dispute arising hereunder. In the event of claim, a notice in writing should be sent to THE PHOENIX INSURANCE COMPANY. LTD., Derech Ha Shalom 53, Givatayim, Israel. VII. Subject to the attached Confiscation and Expropriation Wording. VIII. Subject to the attached Institute War Clauses and Institute Strikes Clauses. IX. INSTITUTE RADIOACTIVE CONTAMINATION, CHEMICAL, BIOLOGICAL, BIO-CHEMICAL AND ELECTROMAGNETIC WEAPONS EXCLUSION CLAUSE (1/1/2004) This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith 1 In no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed to by or arising from 1.1 ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel 1.2 the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof 1.3 any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter 1.4 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 1.5 any chemical, biological, bio-chemical, or electromagnetic weapon. X. INSTITUTE CYBER ATTACK EXCLUSION CLAUSE CL 380 (1/1/2004) 1.1 Subject only to clause 1.2 below, in no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed to by or arising from the use or operation, as a means for inflicting harm, of any computer, computer system, computer software programme, malicious code, computer virus or process or any other electronic system. 1.2 Where this clause is endorsed on policies covering risks of war, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power, or terrorism or any person acting from a political motive, Clause 1.1 shall not operate to exclude losses (which would otherwise be covered) arising from the use of any computer, computer system or computer software programme or any other electronic system in the launch and/or guidance system and/or firing mechanism of any weapon or missile. CONFISCATION AND EXPROPRIATION WORDING 2 1 a) This Policy is to cover loss of and/or damage to the property hereby insured directly caused by confiscation, seizure, appropriation, expropriation, requisition for title or use or wilful destruction by/or under the order of the Government (whether civil, military or defacto) and/or public or local authority of the country in which the vessel(s) /craft/property hereby insured are covered by the terms of this policy. b) Nevertheless this Policy does not cover any such loss or damage by or under the order of a Government or any local authority. 2 a) No claim to attach hereto for any loss arising from any debt, failure to provide bond or security, or any other financial cause, whether under court order or otherwise. b) No claim to attach hereto for any loss arising from the repossession of property by any titleholder, or arising out of any contractual agreement to which any Assured protected under this Policy may be party. c) No claim to attach hereto for delay, deterioration and/or loss of market. d) No claim to attach hereto for any loss unless preliminary notification of the occurrence giving rise to such loss shall have been advised in writing to Underwriters 4

5 as soon as practicable, and the Assured undertake that all times from the date of such preliminary notification they will do and concur in doing all things reasonably practicable to avoid or diminish the loss and to recover the whole of the property insured by this Policy. 3 a) Warranted that the Assured comply in all aspects with the laws (local or otherwise) of any country within whose jurisdiction the property may be. b) Warranted all permits necessary for legal operation are obtained. Should failure to comply with above warranties prejudice this insurance to the extent of a loss, no liability shall attach hereunder. 4 In the event of any claim hereunder, the Insured undertake to subrogate to Underwriters the right of procedure against any other parties for the recovery of, or in respect of, the said property. 5 No cancelling and no return of premium for short interest, unless specially agreed at inception. 6 This insurance does not cover any loss or damage which at the time of the happening of such loss or damage 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 insurance not been effected. 7 Underwriters subscribing to this insurance hereby agree that if a new Government were installed in a country and after becoming the recognised Government of the country proceeded to confiscate or expropriate property of Government decree or other legislation they would settle a loss if it fell under the terms of the Policy wording of the Insurance. Underwriters subscribing hereto acknowledge and accept that the Government might have been installed by force or armed revolt. 5