25-64121511-ITB Ocean Marine Open Cargo Attachment L Expiring OMH Policy.pdf

Solicitation No. 25-64121511-ITB

Attachment L Ocean Marine Policy

OMH 583-30-46

The current expiring Ocean Marine Policy No. OMH 583-30-46 is provided on the following pages.

Policy Number ~

MH 3546457-00 ZURICH

Declarations Ocean Marine Policy The Company shown below herein called the Company or insurers, in consideration of premium to be paid at rates as hereinafter provided does insure the Named Insured, for account of whom it may concern, subject to the terms and conditions as hereinafter stated and attached hereto.

Zurich American Insurance Company

Named Insured and Address (Number, Street, Town or City, State, Zip Code

State of Florida

Producer Name and Address Arthur J Gallagher & Company 8200 NW 41st Street, Suite 200 Miami, FL 33166-6204

4050 Esplanade Way# 315 Tallahassee, FL 32399-0950 Policy Period From (Mo - Day,- Yr) To (Mo - Day - Yr) Noon Standard Time at the address of the Named Insured as stated herein. ' 7/2/2004 " 7/2/2005 Loss, if any, payable to:

Assured or Order

Rate Total Premium Amount Insured per schedule per schedule Hull $40,625

On per schedule Subject to the following:

Zurich General Conditions AIMU P&I Clauses June 2, 1983 American Institute Hu!! Clauses (June 2, 1977)

Taylor Collision & Towers Liability Clause (P&I)

P&I $34,700 Total: $75,325

Food and Beverage Exclusion Diving, Swimming and Snorkling Activities Exclusion AIMU - Chemical, Biological, Biochemical and Electromagnetic Exclusion Clause AIMU - Extended Radioactive Contamination Exclusion Clause with U.S.A. Endorsement

American Institute S.R.&C.C. Endorsement (Hull) September 8, 1959 Special Conditions

This Policy is made and accepted subject to the foregoing provisions and stipulations and those hereinafter stated, which are hereby made a part of this Policy, together with such other provisions, stipulations and agreements as may be added hereto, as provided in this Policy.

In Witness Whereof, the Campany identified on the declarations page has caused this Policy to be executed and attested on its behalf, but this Policy shall not be valid unless countersigned on the declarations page by a duly authorized representative of the Company.

QUESTIONS ABOUT YOUR INSURANCE? Your agent or broker ls best equipped to provide information about your insurance. Should you require additional information or assistance in resolving a complaint, call or write to the following (please have your policy or claim number ready):

John J. McCartney President Zurich American Insurance Com an

Do Not Write In This Box

Countersigned At

Atlanta, GA

Zurich North America Customer Inquiry Center

1400 American Lane Schaumburg, l!linois 60196-1056

1-800-382-2150 (Business Hours: 8am-4pm (CT))

David Bowers Corporate Secretary Zurich American Insurance Com an

Issue Date

July 26, 2004 Date Countersigned

July 2, 2004

Zurich General Conditions ZURICH

1. F.C. & S. WARRANTY

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

(a) Capture, seizure, arrest, restraint or detainment, or the consequences thereof or any taking of the vessel by requisition or otherwise, whether in time of peace or war and whether lawful or otherwise;

(b) All consequences of hostilities or warlike operations (whether there be a declaration of war or not), but the foregoing shall not exclude collision or contact with aircraft, rockets or similar missiles, 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 (including any authority maintaining naval, military or air forces in association with a power);

(c) Any weapon of war employing atomic or nuclear fission and/or fusion or other reaction force or matter whether in time of peace or war;

(d) Civil war, revolution, rebellion, insurrection, or civil strife arising therefrom; or piracy.

B. If war risks are hereafter insured by endorsement of the Policy, such endorsement shall supersede the above warranty only to the extent that its terms are inconsistent and only while such war risk endorsement remains in force.

2. S.R. & C.C. WARRANTY

Warranted free of damage to or destruction of the property insured directly caused by strikers, locked out workmen, or persons taking part in labor disturbances or riots or civil commotions or caused by vandalism, sabotage or malicious mischief.

3. POLLUTION EXCLUSION CLAUSE

Notwithstanding anything to the contrary this Policy does not insure against any loss, damage, cost, liability, expense, fine or penalty of any kind or nature whatsoever, and whether statutory or otherwise, incurred by or imposed on the insured, directly or indirectly, in consequence of, or with respect to, the actual or potential discharge, emission, spillage or leakage upon or into the seas, waters, land or air, of oil, petroleum products, ( chemicals or other substances of any kind or nature whatsoever.

4. NUCLEAR EXCLUSION CLAUSE

This Policy does not insure against loss or damage caused by or resulting from nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled, and whether such loss be direct or indirect, proximate or remote, or be in whole or in part caused by, contributed to , or aggravated by the peril(s) insured against in this Policy; however, subject to the foregoing and all provisions of this Policy, direct loss by fire resulting from nuclear reaction or nuclear radiation or radioactive contamination is insured against by this Policy.

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5. NOTICE OF LOSS

Warranted that in case of any casualty or loss which may result in a claim under this Policy the Insured shal!

give this Company prompt notice thereof and reasonable opportunity to be represented on a survey of the damage.

6. LITIGATION

No suit, action or proceeding brought by the Insured against this Company for the recovery of any claim under this Policy shall be sustainable in any court of law or equity unless the same be commenced within twelve ( 12) months after this Company has denied liability for payment of claim; except that in the case of a claim arising under the Collision Clause, no suit or action shall be sustainable unless brought within twelve (12) months next after the Insured shall have discharged his liability. Provided however, that if by the laws of the state within which this Policy is issued such limitation is invalid, then any such claim shall be void unless such action, suit or proceeding be commenced within the shortest limit of time permitted, by the laws of such state, to be fixed herein.

7. PAYMENTOFLOSS

In case of loss, such loss to be paid within thirty (30) days after satisfactory proof of loss and interest shall have been made and presented to this Company, (the amount of any indebtedness due this Company from the Insured or any other party interested in this Policy being first deducted).

8. RIGHTS OF RECOVERY

A. Upon making payment under this Policy the Company shall be vested with all of the Insured's rights of recovery against any person, corporation, vessel or interest and the Insured shall execute and deliver instruments and papers as this Company shall require and do whatever else is necessary to secure such right.

B. Any agreement, contract or act, past or future, expressed or implied, by the Insured whereby any right of recovery of the Insured against any vessel, person or corporation is released, decreased, transferred or lost which would, on payment of claim by this Company, belong to this Company but for such agreement, contract or act shall render this Policy null and void as to the amount of any such claim, but only to the extent and to the amount that said agreement, contract or act releases, decreases, transfers, or causes the loss of any right of recovery of this Company, but the Company's right to retain or recover the full premium shall not be affected.

9. PREMIUM EARNED

In the event of payment by this Company for a Total or Constructive Total Loss of the named vessel(s), the full / annual premium shall be deemed earned.

IO. HEALTH HAZARD EXCLUSION

Notwithstanding anything to the contrary contained herein, it is understood and agreed that this insurance shall not apply to any liability for personal injury and/or Property Damage made by or on behalf of any person or persons directly or indirectly on account of continuous, intennittent or repeated exposure to, ingestion, inhalation, or absorption of, any substance, material, product, waste, emission, radioactive substance, noise or environmental disturbance where the Assured is or may be liable as a result of the manufacture, production, extraction, sale, handling, utilization, distribution, disposal or creation by or on behalf of the Assured of such substance, material, product, waste, emission, radioactive substance, noise or environmental disturbance.

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11. PUNITIVE DAMAGES EXCLUSION CLAUSE

Notwithstanding anything to the contrary contained in this policy, no liability attaches to the Assurers for any loss, damage, cost, liability, expense, fine or penalty, of any kind or nature whatsoever, whether statutory or otherwise, imposed upon the Assured as punitive or exemplary damages.

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ENDORSEMENTNO.: 1

PART OF POLICY:

ASSURED: ST ATE OF FLORIDA, AS PER ENDORSEMENT NO. 1

EFFECTIVE DATE: 07/02/2004

NAMED ASSURED ENDORSEMENT

IT IS HEREBY UNDERSTOOD AND AGREED THAT THE NAME OF THE ASSURED AND THE

ADDRESS OF THE ASSURED SHALL READ AS FOLLOWS:

THE STATE OF FLORIDA, ELIGIBLE USERS.

BELOW IS A SCHEDULE OF ELIGIBLE USERS:

; FAU - Florida Atlantic University ;FWC -Fish and Wildlife Conservation

FSU - Florida State University ; UF - University of Florida JUSF - University of South Florida c/o Department of Management Services, Division of State Purchasing 4050 Esplanade Way, Suite 315 Tallahassee, FL 32399-0950

All other policy terms and conditions remain unchanged

DATE: 7 / _;z } 0 ~ -~ (,\/~ OCEAN MARli"IE DEPRTMENT

ENDORSEMENT NO.: 2

ASSURED: STATE OF FLORIDA, AS PER ENDORSEMENT NO.

EFFECTIVE DATE: 07/02/2004

Navigational Description

Navigational Code

Navigational Description

The inland and coastal waters of the US between Brownsville TX and Jacksonville F1 not to exceed 200 miles offshore excluding the territorial waters of Cuba and the waters thereof 20 miles from the Cuban shore

The inland and coastal waters of the United States bet\vecn New Orleans LA and JacksonvilJe FL.

Both inclusive not to exceed 200 miles offshore and the waters of the Bahamas including voyages to and from the US coastal waters however in any event excluding the waters of Cuba and the waters thereof 20 miles from the Cuban shore.

The inland and coastal waters of the US between Brownsville, TX and Portsmouth New Hampshire not to exceed 200 miles offshore excluding Cuba and the waters thereof 20 miles form the Cuban shore

The inland waters of State of Florida /

The inland and coastal waters within the East Coast / of Florida.

The inland and coastal waters of the State of Florida not to exceed three J miles offshore

The inland and coastal waters of the United States between Jacksonville, FL and Tampa Fl both inclusive not to exceed 200 miles offshore and the waters of the Bahamas including voyages to and from the US coastal waters however in any event excluding the waters of Cuba and the waters thereof 20 miles from the Cuban shore

All other policy terms and conditions remain unchanged

DATE:

AMERICAN INSTITUTE HlJLL CLAUSES (.lune2, 1977)

To be attached to and form c1 part of Po!ic;, No ,m JS46457-00 ------ of the Zurich America~---~-l1-~_U,_r_~_1_1~e Com_pan~

The terms and conditions of the rollmvuw clauses are to be rce:ardcd as substituted for those of the policy form lo \drn:h thl'.\ arc attached, the latter being hereby waived, except prO\'isions ;c:quin:U by 1.:1\v to be fosertcd in the Policy. Al! rnptions c1re inserted only for purpusCs of reference and shall not be used to interpn;t the clauses to which the:, apply

ASSURED

This Policy insures State or Florida hcrem,1ftcr referred to as the Assured.

1f claim is made under this Policy hy :rnyonc other than the Owner of the Vessel, such person shall not be entitled to recover to a greater extent than would the O\vner, had claim been madL: by the Owner as an Assured named in this Policy.

Underwriters waive any right or subrogation against c1ffiliated. subsidiary or interrelated companies of the Assured, provided that such waiver shall not apply in the event of a collision hetwecn thc Vessel and any vessel owned, demise chartered or othenvise controllcd by any of the aforesaid com panies, or with respect to ,my loss, damage or cxpcns<: against which such companies arc insured.

LOSS PAYEE

Loss, if any, payable to Assured or Order l

Provided, however, Underwriters shall pay claims to others as set forth in the Collision Liability clause and may make direct payment to persons 12 providing security for the release of the Vessel in Salvage cases. 13

VESSEL

The Subject Matter of this insurance is the Vessel called the per schedule or by whatsoever name or names the said Vessel is or shall be "caiied; · which ··tor purposes ot'-·tti"\'S····1nsurance sl1.iiTi""-·C0riS1.~it ··o"t'" arid····se···yiinfred to her hull, launches, lifeboats, rafts, furniture, bunkers, stores. supplies, tackle, fittings, equipment, apparatus, machinery, boilers, refrigerating machineryfnsu!a tion, motor generators and other electrical machinery

In the event c1ny equipment or apparatus not owned by the Assured is installed for use on board the Vessel and the Assured has assumedespon sibility therefor, it shall also be considered part of the Subject Matter and the aggregate value thereof shall be included in the Agreed Value

Notwithstanding the foregoing, cargo containers, barges and lighters shall not be considered a part of the Subject Matter of this insurance

DURATION OF RISK

From the to the day of Ji_~l)' __ ~~-0_4~, ______________________ _ day of .. :!!:!_IX,__~~-0_5~,------------------------~

Noon Standard

Noon Standard time.

time.

JS

Should the Vessel at the expiration of this Policy be at sea, or in distress, or at a port of refuge or of call, she shall, provided previous notice be 23 given to the Undenvriters, be held covered at a pro rata monthly premium to her port of destination. 24

In the event of payment by the Underwriters for Total Loss of the Vessel this Policy shall thereupon automatically terminate. 25

AGREED VALUE

The Vessel, for so much as concerns the Assured, by agreement between the Assured and the Undenvriters in this Policy, is and shall be valued at 26 per schedule

AJ\IOUNT l'.\!SURED HEREUNDER

-----~~~ schedule

DEDUCTIBLE

Dollars. 27

Dollars. 28

Notwithstanding anything in this Policy to the contrary, there shall be deducted from the aggregate of a!! claims (including claims under the Sue 29 and Labor clause and claims under the Collision Liability clause) arising out of each separate accident, the sum of per schedule, ~ 30 acci.!ent ~en ltr in a Total boH of th, V 'rr ,J ill whicH car@ tHir ·la If@ rhall not opp):'. A recoveiy ...... t"rom other interests, however, sh'aiT .. not operate to 31 exclude claims under this Policy provided the aggregate of such claims arising out of one separate accident if unreduced by such recovery exceeds that 32 sum. For the purpose of this clause each accident shall be treated separately, but it ls agreed that (a) a sequence of damages arising from the sc1ma.cci- 33 dent shall be treated as due to that accident and (b) a!! heavy weather damage, or damage caused by contact \Vith floating ice, which occurs during a 34 single sea passage between two successive ports shall be treated as though due to one accident. 35

PREl\UUJ\I

The Underwriters to be pc1id in consideration of this insurance S40,625 Dollars being at the annual rate of _______ per schedule iS. "Insured under this Pofri::'Y for a period of less than one year at pro rata o(t'i-te annual rate, ate!y due and payable in the event of Total Loss of the Vessel.

RETURNS OF PREMIUM

h? tat? dail:- net in the event gftermiratinr 'lrcler+he Charge ofOn:r'rBhip sla,rne;

Prn rata mond !:· H 'I for each 'IHGDH'll'HSPG -d 1rn,1r1H if it l?s !+l11t11all:· agrs 'd t? car "l tbir Pnlicy;

fnr '@GP p 'rind pf "'O con rec ,th·' d2:T fac Hes - 'l ma;· be laid up in port for ar.coHnt oftHe 10511rsd.

'GlS1f p 'r GGPL PG1 lS?1 1mdsr repair, or

""' prori~ ~-~ a·lll'·l~'-E ih.?t per cent., which premium shaffhe··due··on··atta·d1i"nent. If the Vessel full annual premium shall be considered earned antlnmedi-

4.'i 4"

{aj ? TNal f OPS oftln Vess~] h?s P )I rr·d d11ring th-• ' 1rr•p' 11" tl:iis Pol c:·: 4:;1.

AA in no G?'G i>bll a n1:rn Gn hy p h· 11 11 ··i A·n tl1· V•ccl is l.'il'lQ in ''PPGcd or nprotcctcd l"atcrn gr iR 111:· loGa'ioA pJ· appp1·•i by 4-S 111, r 1ml ·r FJ=it~rr; 40

{g in th· e ·ent ofan:; 1me11dme111 ?i'thc rnn1nl rate, the aho•·e r11· ofrct11r.i rliaJl P·, lj11£V.! 1ccoriingly;

~ in 11) "f' E'h?Jl? f'hlrn b· allow•.! ll'h·n the Vess•) is ed' '1Pr' ~" ·hip )f fH ligl:itering P' rp?SCf.

lr 11:ie Veer•! is laid 11p :fcgr a f!'rio.l .=Jf :'Q GGR£'C ni,·e t· _ 1 p·1rt onl: of whi ·l:i 3lt"lGllliS 111.r,l~r tl;iis pg)ic:·, portign Qf the n:t irn shw i1~ r1:sr1··1 r f a till! perio.l of :w d.t_., 'ff II,, n 1mber ?f ,fa:·s qt;;1;,1'Ai1ig Ii ·i:ctg J;,•21T to JO.

·onr • · ,-,,., Ja:·s_ ti.·· Aff r~ J s1:ia!I h?1•e 11:i, optio1:i to elect tl:ic p·riO'l 1r :'Q · JP ,,·11fr··· ;fo:_·f fr r d1ich a i:ctmn is r ''01•~r2hle.

th· llnQ•p·ritT ~1:nl 1 i;n:· [1·R fJrO ~Re ill t;l,• h;· II? r·ri2d en·ed 30

NON-P.-\ YMENT O:F PREMIU.l\-I

IP ')'f'l:il gf non w1:•m 0AI gf pr·mi IFR JO ·h:·, aft··r 'lll'l ·hm '1'1. lr

11Tit·n 1po11 10 da:·• writh?P or t·l1egnpl'i" Aot·~e s·rt t th• ·\ S GA prnp?rtio1 ,f th· prerni11m. hn·•,·cr, 2· sl.'11 l:ia'· b··1i "U~'d V•sr·l )'Gtrringpi:iorTGAA:' ''.l'1CGllatioPOfl'Pn"n-t ,ofth ·P 1·,_, f ll·rn

ADVENTURE

I - t hi1· )w·t h, Jll'PJ ai;h;lr••~ Pr ii. cae , f t;H' fli:ot:,r ·H 1p to 111, 1·m· gf Wl''!i?tion shall b@ pa:.'abl@. 1H ti.· uwt '] prnv", n -1,,p b··cwr·d·r·d ~arn·d.

'11 lt'Y'' tl:ii£ 1( 'j')•·) .b.GE£

! 111.l'.::r l'elicy.

gf the so 5-1-

Beginning the adventure upon the Vessel, as above, and so shall continue and endure during the period aforesaid, as employment may offer, in port or 59 at sea, in docks and graving docks. and on ways, gridirons and pontoons_ at all times_ in all places, and on all occasions, services and trades; with leave 60 to sail or navigate \Vith or ,vithout pilots, to go on trial trips and to assist and tow vessels or craft in distress, but the Vessel may not be towed, except 61 as is customary or when in meed or assistance, nor shall the Vess..::! render assistance or un<lenake towage or salvage services under contract previously 62 arranged by the Assured, the Owners, the Managers or the Charterers of the Vessel. nor shall the Vessel. in the course of trading operations, engage in 63 loading or discharging cargo at sea, from or into another vessel other than a barge_ lighter or similar craft used principally in harbors or inland waters. 64 The phrase "engage in loading or discharging cargo at sea" slmll include while approaching, leaving or alongside, or while another vessel is approaching, 65 leaving or alongside the Vessel. 66

The Vessel is held covered in case of any breach of conditions as to cargo, trade, locality, towagc or salvage activities or date of sailing, or loading 67 or discharging cargo at sea, provided (a) notice is given to the Underwriters immediately following receipt of knowledge thereof by the Assured, and (b) 68 any amended Lcrms of cover and any additional premium required by the Undenvriters are agreed to by the Assured. 69

PERILS

Touching the Adventures and Perils \Vhich the UndernTiters are contented to bear and take upon themselves, they are or the Scasl',,1cn-or-War, Fire, 70 Lightning, Earthquake, Enemies, Pirates, Rovers, Assailing Thieves, Jettisons, Letters of Mart and Counter-Mart,Surprisals, Takings at Sea, Arrests. Re- 71 straints and Detainments of all Kings, Princes and Peoples, of what nation, condition or qualitysoever, Barratry of the Master and Mariners and of all 72 other like Perils, Losses and Misfortunes that have or shall come to the Hurt, Detriment or Damage of the Vessel, or any part hereoC excepllng, how- 73 ever, such of the foregoing perils as may be excluded by provisions elsewhere ln the Policy or by endorsement thereon. 74

ADDITIONAL PERILS (INCHi\-lAREE)

Subject to the conditions orthis Policy, this insurance also covers loss of or damage to the Vessel directly caused by the following: 75 Accidents in loading, discharging or handling cargo, or in bunkering; 76 Accidents in going on or on: or while on drydocks, graving docks, ways, gridirons or pontoons; 77 Explosions on shipboard or clse,vhere; 78 Breakdown of motor generators or other electrical machinery and electrical connections thereto, bursting of boilers, breakage of shafts, or any 79 latent defect in the machinery or hull, (excluding the cost and expense of replacing or repairing the defective pan); 80 Breakdo)>m_of_or accidents lo nuclear installations or reactors not on board the insured Vessel; 81 Contact\\:ith _.aircraft, rockets or similar missiles, or \Vith any land convevnnce; , 82 Negligence of Charterers and/or Repairers, provided such Charterers and/or Repairers are not an Assured hereund;r; 83 Negligence or Masters, Officers, Cr,:;w or Pilots; 84 provided such loss or damage has not resulted from want of due diligence by the Assured, the Owners or Managers of the Vessel, or any of them. 85 Masters, Officers, Crew or Pilots are not to be considered Owners within the meaning ofthis clause should they hold shares in the Vessel. 86

DELIBERATE DAMAGE (POLLUTION HAZARD)

Subject to the conditions of this Policy, this insurance also covers loss of or damage to the Vessel directly caused by governmental authorities 87 acting for the public welfare to prevent or mitigate a pollution hazard, or threat thereat: resulting directly from damage to the Vessel for which the 88 Unden\/Titers are liable under this Policy, provided such act of governmental authorities has not resulted from want of due diligence by the Assured, the 89 Owners, or Managers of the Vessel or any of them to prevent or mitigate such hazard or threat. Masters, Officers, Crew or Pilots are not to be considered 90 Owners within the meaning of this clause should they hold shares in the Vessel. 91

CLAIMS (GENERAL PROVISIONS)

In the event of any accident or occurrence which could give rise to a claim under thls Policy, prompt notice thereof shall be given to the Under- 92 v.Titers, and: 93

(a) where practicable, the Underwriters shall be advised prior to survey, so that they may appoint their own surveyor, it they so desire; 94

(b) the Undenvriters shall be entitled to decide where the Vessel shall proceed for docking and/or repair (al!o\v,mce to be made to the Assured for the 95 actual additional expense of the voyage arising from compliance with the Undenvriters' requirement): 96

(c) the Underwriters shall have the right of veto in connection with any repair Cirm proposed; 97

(d) the UndenvTiters may take tenders, or may require in \\Titing that tenders be t.aken for the repair of the Vessel, in which event, upon acceptance 98 of a tender with the approval of the Undenvriters, an allowance shall be made at the rate of 30 per cent.per annum on the amount insured, for 99 each day or pro ratn for part of a day, for time lost between the issuance of invitations to tender and the acceptance of a tender. to the extent 100 that such time is lost solely as the result of tenders having been taken and provided the tender is accepted without delay niter receipt of the 101 Underv,Titers' approval. 102

Due credit shall be given against the allowances in (b) and (d) above for any amount recovered: 103

(]) in respect of fuel, stores, and wages and maintenance of the Master, Officers or Crew allowed in General or Particular Average; 104

Q.) from third parties in respect of damages for detention and/or loss of profit and/or running expenses; I 05 for the period covered by the allowances or any part thereof. J 06 No claim shall be allowed in Particular Average for wages and maintenance of the Master, Officers or Crew, except when incurred solely for the 107 necessary removal of the Vessel from onl: port to another for average repairs or for trial trips to test average repairs, in which cases wages andnainte- 108 nance will be allowed only while the Vessel is under wc1y. This exclusion shall not apply to overtime or similar extraordinary payments to the Master, 109 Officers or Crew incurred in shifting the Vessel fnr tank cleaning or repairs or while specifically engaged in these activities. either in port or at sea. 110

General and Particular Average shall be payable without deduction, new for old 111 f"hl'. l'.Xpl'.nsc or sighting the bottom after stranding shall be paid, ifre.:isonably incurred esp<eciall~ for that purpose, even ifno damage be found l 12 'lo claim shall in any case be allowed in respect or scraping or painting the Vessel's bottom l 13

In th<: c:\·ent of loss or damage to equipment or apparatus not O\\·ned by the A~surcLI but instalkd for use on board the Vessel and for which the 114 Assured has assumed responsibility, claim shall not exceed (1) the amounl the Um.krwritcrs would pay if the Assured were mvner of such equipment or 115 aprmatus, or (2) the contractual responsibility assumed by the Assured to the owners or kssors thc:n:of, whichever shall be less. 11 G

No claim for unrepaired dc1mages shall be allowed, except to the extent that the aggregate damage caused by perils insured against during the period 117 of the Policy and left unrcpaired at the expiration of the Policy shall be demonstrated by the Assured to have diminished the actual market value of the ! 18 Vessel on that date if undamaged by such perils. 119

GENERAL AVER.AGE AND SALVAGE

Gt:ncral AYcragc and Salvage shall be payable as provided in the contract ofctffreightment or failing such provision or there be no contract of 120 affrcightment, payable at the Assured's election either in accordance with York~Antwerp Rules !950 or 1974 or with the Laws andUsages of the Port of 121 Ne\\- York Provided always that when an adjustment according to the laws and usages of the port of destination is properly demanded by the owners 122 of the cargo_ Genera! Average shall be pc1id accordingly. 123 ln the event of salvage, to\vc1ge or other assistance being rendered to tht: Vc:ssel by any vessel belonging in part or in whole to the same O\vners or 124 Charterer~. the value of such services (without regard to the common ownership or control of the vessels) shall be ascertained by arbitration in the man- 125 ner provided for under the Collision Liability clause in this Policy, and the amount so awarded so far as applicable to the interest hereby insured shall 126 constitute a charge underthis Policy. 127

\\/hen tht: contributory value of the Vessel is greater than the Agreed Value herein. the: liability of the Underwriters for General Average contribution 128 {except in respect to amounts made good to the Vessel), or Salvage, shall not exceed that proportion of the total contribution due from the Vessel which 129 thc amount insured hert:undcr bears to the contributory value, and if, bccaus.: of damage for which the Undcnvriters are liable as Particular Average, the \JO value or the Vessel has been reduced for the purpose of contribution, the amount of such Particular Average damage recoverable under this Policy shall 1.31 first bc deducted from the amount insured hereunder, and the Underwritc:rs slrnll then be liable only for the proportion which such net amount bears 132 to the contribuwry value. 133

TOTAL LOSS

In ascertaining \Vhether the Vessel is a constructive Total Loss the Agreed Value shall be taken as the repaired value and nothing in respect of the 134 damaged or break-up value of the Vessel or wreck shall be taken into account. 135 rherc shall be no recovery for a constructive Total Loss hereunder unless the expense of recovering and repairing the Vessel would exceed the 136 Agreed Value. In making this determination, only expenses incurred or to be incurred by reason of a single accident or a sequence of damages arising 137 from the same accident shall be taken into account, but expenses incurred prior to tender of abandonment shall not be considered if such are to be 138 claimciJ separately under the Sue and Labor clause. 139

!n the event of Total Loss (actual or constructive), no claim to be made by the Undcr.witers for freight, whether notice of abandonment has been 140 given or not 141

!n no case shall the Underwriters be liable for unrepaircd damage in addition to a subsequent Total Loss sustained during the period covered by this 142 Polic:,. 143

SUE AND LABOR

And in case of any Loss or Misfortune, it shall be lawful and necessary for the Assured, their Factors, Servants and Assigns, to sue, labor c1nd travel 144 for, in, and about the defense, safeguard and recovery of the Vessel, or c1ny part thereof, without prejudice to this insurance, to the charges whereof 145 the Undcr,,..riters will contribute their proportion as provided below. And it is expressly declared c1nd agreed that no acts of the Underwriters or Assured 146 in recovering, saving or preserving the Vessel shall be considered as a waiver or acceptance of abandonment. 147

In the event of expenditure under the Sue and Labor clause, the Underv.-riters shall pay the proportion or such expenses that the amount insured 148 hereunder bears to the Agreed Value, or that the amount insured hereunder (less loss and/or damage payable under this Policy) bears to the actual 149 value of the salved property, whichever proportion shall be less; provided always that their liability for such expenses shall not exceed their proportionate 150 part of the Agreed Value. 151

Ir claim for Total Loss is admitted under this Policy and sue and labor expenses have been reasonably incurred in excess or any proceeds realized 152 or value recovered, the amount payable under this Policy will be the proportion of such excess that the amount insured hereunder (without deduction 153 for loss or damage) bears to the Agreed Value or to the sound value of the Vessel at the time of the accident, whichever value was greater; provided 154 alwc1ys that Undcnvriters' liability for such expenses shall not exceed their proportionate part of the Agreed Value. The foregoing shall also apply to 155 expenses reasonably incurred in salving or attempting to salve the Vessel and other property to the extent that such expenses shall be regarded as having 156 been incurred in respect of the Vessel. 157

COLLISION LIABILITY

:l ml it i1· f1111hcr agree.I 0:1at

(a) if ii,, \hgt·cl sl.all 'GWG int0 c0lliciG11 'l'i!h ?Pl' 0th'r rh"p N ,·~svl sh·II bVHA' liabl' 19 J?O) and Ehall pay b:' ",'?) gf da1+1ag•s to on:', JJ,JJT,·ri1·rs "'ill po; 1l<G A1·rnrGd gr 1he Sure!), "'hich'1•sr sl11P h?".i gcr·p1io1,r h·'r'1G b@ar 19 thG :lqrc:i;,~d Vah1· prGl'idGd 1k1l'f that their

11ad tlr Ci;_· 1r•;l 9f th@ S'ur~t:y iA COl168'1: l'n··• of thG V•srnl bGing at t:ault otl:wr p·r1,on >H percon1, an~· 611m or 1,111:i:ir in F'FP''1 gf ·11·h c1lli1,io11, the paid, rn.:h prnpntion of s 1.:1:! m,rn Gr n1rn· 69 psi l ar 1h-·ir rcq:wcti•·c rnb li·1l;,ili~· ii. r~i;p'Ct tg on:· one 6HGh. collifiGA i;hall !lGt G'"'@•d 1i.cp:r0por

(b) in C?''& , ]1'fC, ll'ith the conent in writiAg of 1 1+1ajori1:)' (iR arnonRt) of U. ill fln.lT,:rit~rr, tHe !ie1bi!il5 gf 1l<G VGcr'l An bn1 ·gnt•flci, Gr !'lfO- 164 ·,ciing1, ln' been tahn t9 limit Jial;,iliq,·, tbe PndeP"riterr p·ill aloG pia:y a lih propgrtiBR of the CGftf wJ1ich 1ln Arn1TGd shall tl:icTGb: incur 165 irbc ·?mf.l"ll·lt?J?a:· 166

When b?lh ,-·rr·lr ar' to hlarn>, then, 11Rl-·u tA.i liobili:t:· 1f th· VFP@rf or1;ln11sr•ff if JR' ir bG1h ·Ji ,-,u,lr lrcorner 1i1+1itGd hr b · clai1+1s Hi7 :md·r th C1lli(on 1 ··1hil'h· c1awe gl,ajl be s>tthl ,;,;.i the principl~ of CroH Li·1bilitii;i1, 'lE if tl.e "·rcnr irlnr1'r'rf lf G"lGh '"W'l had ?~'A C9r+lpG11Gd 168 ~9 p I'! th· o ''A'rG 1r cP2cPnrc of thG 011:i·r off + "%f'1f E ch on· half or cth··r 11rnp1rtion of th· latt'r'r .l'Hl'Hg'f ac 1:i:iay h•i,-, b''A i,1r i;')G~l:- 2ll0wcd 169 in 1:· :,i=l"lil'iAg 1l1' l:;·ilaA - , n F irn pa;·a\:il\J \:>:• w 19 tis' :l ff' rrGd in C- ?Af .. 1u-nce of s, 'h col! \ion 170

Th~ pri11-·pk:' iu>'li''i in thh' -la 1r@ rholl app!; t? 11w C'f' drnre boti;J 'Gf@h; ·r-, th· 11rop'rt:,;_ ir fl'l!=I or i1s whol''. gf th' rnn,• \ll'Jl'Ff Hf ·hart- 171 GFGV. ·ll ] l't·1i)llF Jf f'Cponcibilil; 'lnl ?l+l9Hnt of 1',1bil't;' ?' b'IJ 'GOP the Tl") l"'rls b·l1ag !@fl to t,lw .lo·irill gf 'l "iRgle Arbi1r21Gr. if tl.· j?'l1ies 172 c:·ni. 'JV'' IJ?'ll' oiisgl' hbitr·tgr. Gr foili11,;; &1'"h ag,rrrn'nt, 11 1A· J--c ··on of ·lirb'tr•tors. v1~ t? h~ appoi1:ited h:: tA~- 1t·1r·d ·m.l JR'' to 1r ·1pi,niPted !73 b:,· tlr 1:i:i·1~ori1:· (in amo 111) of H11II llR.l'P<Tit'rF ii,t'f'FI'/ ilie 1lJ'O 1rbi1i:atw -Rn•is tl +00t' ? 1hird hbi1r2tor bt·klM1 •n,t•ri11g 1pon th~ wti·rence, 174 1,n;l ·h·· d'Gi&i>H< ef~ ·h 1.i1;igl~ 1rbitrat9r, gr of:ii;i_:,· tn•o ofrnch tJ.r~· \rbitratm. · i,p,i1,t';I ··F ·1P ,,,,_ to b' fin·! ·oA;I bin·iing. 175

Pn01'ido>d aka:·s that tlsir Gla 1c·· El:11ll in, no '"It'"' "Ot'Al ti an:' s 111:i F);ii·h 11,, 'rr rn,l 1r 1h' S ir@t:' ma:,_. bernme liable to J?'lY or Lhe1!l pa.:_· i~onrn 176 opwnv of. gr u·i1A nepeGt 10 177

{aj r@wo,·al gr diop ?£al of obnrncti wr. , :nwh or tP 'ir car2o~r under sl?t11!0P_· peill'en; or gth 'Pl'iE'' r11rr1 ?Pt tg 13w; m fl,aj ii j r,; t 1 i: "ll or p T 1Aal proper1,- ,r "'"9' chrcrip1ioH: m ~ fag faG 1iarg •. rpi!hg ,_ 'J+iiffion Gr !c·,l·agc of oil, prm 1I ·um pnd11 ·tr cl1 'J+ii '?lr or otbGr ,nbstonc 'E ofon;' hnd or .lecGription n·Hatro@1 er; ~

~ G'Fg" 1rod,,rprop'f1:''lt rth@ 'Rg@g@rnGRlf ,f1J,,\ 1·•g•I; +£,,1.

{4 Ion ofliti-, p'H'OP?! i1tj'IP,' or il!H 0 E6.

Prv·id·.l fu:1 1,•r tht ,,-cl 1ri0:nr (b) onJ (') 'bcue r:lvll nit appl: to irjur:,_· to otlu•r J'@E&elE or proprt:,' ther@BR ?r°f'f o 11 9f'rn; a"tion 1'1}· 'P tG ·i,'oi l. pfrimiz' or rmnre an:: rf"scP'F£G, spillog>, @rnisrion n l'ohgG d·&Grifl@.I in (G) aflgi-e.

':-CGpt to nw G:'1 'nl 1lnt E 1ch iRjury -l-S,;,,, =

PILOTAGE .\.ND TOWAGE

This insurance shall not be pre_judiccJ by reason of any contract limiting in whole or in part lhi: liability of pilots. tugg;owboats, or their owners 185 \-Vhen the Assured 01· the agent of the Assured accepts such contract in accordance \-Vith established local practice J 86

Where in accordance with such rm1cticc, pl!otage or towage services are provided under contracts requiring the Assured or the agent of the Assurcd: 187

(a) to assume liability for damage resulting from collision of the Vessel insured with any other ship or \·esseL incluJing the towing vessel, or I 88

(b) to indemnify those proviJing the pilotage or to wage services against loss or liability for any such Jam ages. I 89,, it is agreed that amounts paid by the Assured or Surety pursuc1nt to such c1ssumed obligations shall be deemed payments "by \-Vay of damages to any other 190 person or persons" and to have been paid "in consequence of the Vessel being at fault" within the mec1ning of the Collision Liability clause in this Policy 191 to the extent that such payments \VOttld have been covered if the Vessel had been legally responsible in the absence of any c1greement. Provided always 192 thc1t in no event shall the aggregate amount of liability of the Underwriters under the Collision Liability clause, including this clause, be greater than 193 the amount of any statutory limitation of liability to which owners arc entitled or would be entitled if liability under any contractual obligation referred to in 194 this clause were included among the liabilities subject to such statutory llmitations. 195

CHANGE OF OWNERSHIP

In the event of any change, voluntary or othenvise, in the ownership or flag of the Vessel. or if the Vessel be placed under new management, or be 196 chartered on a bareboat basis or requisitioned on that basis, or ff the Classification Society of the Vessel or her class therein be changed, cancelled or 197 withdra\vn, then, unless the Undenniters agree thereto in V-.-Titing, this Policy shall automatically terminate at the time of such change of ownership, flag, 198 management, charter, requisition or cli1ssification; provided, however, that: 199

(a) if the Vessel has cargo on boc1rd c1nd has already sal!ed from her loading port. or is at sm in bc1llast, such automatic tcnnination shall, if 200 required, be deferred unlil arrival c1t final port of discharge if with cargo, or at port of destination if in ballast; 201

(b) in the event of an involuntary temporary transfer by requisition or otherwise, without the prior execution of a \\Titten agreement by the 202 Assured, such automatic termination shall occur fifteen days alter such transfer. 203

This insurance shall not inure to the benefit of any transferee or charterer of the Vessel and, if a loss payable hereunder should occur between 204 the time of change or transfer and any deferred automatic termination, the Undenvriters shall be subrogated to all of the rights of the Assured against 205 the transferee or charterer in respect of all or part of such loss as is recoverable from the transferee or charterer, and in the proportion \-vhich the 206 amount insured hereunder bears to the Agreed Value. 207

The tem1 "new management'' c1s used above refers only to the transfer of the management or the Vessel from one firm or corporation to another, 208 and it shall not apply to any internc1l changes within the offices of the Assured. 209

ADDITIONAL INSURANCES

It is a condition of this Policy that no additional insurance against Lhe risk of Total Loss of the Vessel shc1!1 be effected to operate during the cur rency of this Policy by or for account of the Assured, Ov,,-11ers, Managers, Operators or Mortgagees except on the interests and up to the amount1mum erated in the following Sections (a) to (g), inclusive, and no such insurance shall be subject to P.P.L Fl.A. or other like term on any interests whatever excepting those enumerated in Section (a); provided always and notwithstanding the limitation on recovery in the Assured clause a breach of this condition shall not afford the Undenvriters any defense to a claim by a Mortgc1gee who has accepted this Policy without knowledge of such breach:

(a) DISBURSEMENTS, MANAGERS' COMMISSIONS, PROFITS OR EXCESS OR INCREASED VALUE OF HULL AND .MACHINERY, AND/OR SIMILAR INTER ESTS HOWEVER DESCRIBED, AND FREIGHT (INCLUDING CHARTERED FREIGHT OR ANTICIPATED FREIGHT) JNSURED FOR TIME. An amount not exceeding in the aggregate 25% of the Agreed Value.

(b) FREIGHT OR HIRE. UNDER CONTRACTS FOR VOYAGE. An amount not exceeding the gross freight or hire for the current cargo passage and next succeeding cargo passage (such insurance to include, if required, a preliminary and an intermediate ballast passage) plus the charges ofnsur ance. In the case of a voyage charter where payment is made on a time bc1sis, the amount shall be calculated on the estimated duration of the voyage, subject to Lhe limitation of two cargo passages as laid down herein Any amount permitted under this Section shall be reduced, as the freight or hire is eamed, by the gross c1mount so earned. Any freight or hlrc to be earned under the form of Charters described in (d) below sha!l not be permitted under this Section (b) if any part thereof is insured as permitted under said Section (d).

(c) ANTICIPATED FREIGHT 1F THE VESSEL SAILS IN BALLAST AND NOT UNDER CHARTER. An amount not exceeding the anticipated gross freight on next cargo passage, such amount to be reasonably estimated on the basis of the current rate of freight at time of insurance, plus the charges of insurance. Provided, however, that no insurance shall be pennitted by this Section if any insurance is effCcted as pem1itted under Section (b).

(d) TIME CHARTER HIRE OR CHARTER HIRE FOR SERIES OF VOYAGES. An amount not exceeding 50% of the gross hire which is to be earned under the charter in a period not exceeding 18 months. Any amount permitted under this Sccllon shall be reduced as the hire is earned under the charter by 50% of the gross amount so earned but, ,vhere the charter is for a period exceeding l 8 months, the amount insured need not be reduced while it docs not exceed 50% of the gross hire still to be earned under the charter.An insurance permitted by the Section may begin on the signing of the chaner.

(e) PREMIUMS An amount not exceeding the actual premiums of all interest insured as permitted under the foregoing Sections but including, if required, War Risks and Strikes insurance) reducing pro rata monthly.

insured for a period not exceeding 12 the premium or estimated calls on any months (excluding premiums Protection and Indemnity or

(I) RETURNS OF PREMIUM. An amount not exceeding the actual returns which are recoverable subject to "and arrival" or equivalent provision under any policy of insurance.

(g) INSURANCE IRRESPECTIVE OF AMOUNT AGAINST: Risks excluded by War, Strikes and Related Exclusions clause; risks enumerated in the American Institute War Risks and Strikes Clauses; and General Average and Salvage Disbursements.

WAR STRIKES AND RELATED EXCLUSIONS

The fo!!owing conditions shall be paramount and shall supersede and nullify any contrary provisions of the Policy.

This Policy does not cover any loss, damage or expense caused by, resulting from, or incurred as a consequence of:

(a) Capture, seizure, arrest, restraint or detainment, or any attempt thereat; or

(b) Any taking of the Vessel, by requisition or othenvise, whether in time of peace or war and whether !awful or otherwise; or

(c) Any mine, bomb or torpedo not carried as cargo on board the Vessel; or

(d) Any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter: or

222 , 223 1

(e) Civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or piracy; or 245

(I) Strikes, lockouts, political or labor disturbances, civil commotions, riots, martial law, military or usurped power; or 246

(g) Malicious acts or vandalism, unless committed by the Master or Mariners and not excluded elsewhere under this War Strikes and RelatecExclu- 247 sions clause; or 248

Q1) Hostilities or warlike operations (whether there be a declaration or war or not) but this subparagraph (h) not to exclude collision or contact with 249 aircraft, rockets or similar missiles, or with any fixed or floating object, or stranding, heavy wec1ther, fire or explosion unless caused directly by 250 a hostile act by or against a belligerent power which act is independent of the nature of the voyage or service which the Vessel concerned or, in 251 the case of a collision, any other vessel involved therein, is performing. As used herein, ''power" includes any authority maintaining, navakp.ili- 252 tary or air forces in association with a power. 253

If war risks or other risks excluded by this clause are hereafter insured by endorsement on this Policy, such endorsement shall supersede the above 254 conditions only to the extent that the terms of such endorsement are inconsistent therewith and only while such endorsement remains in force. 255

ENDORSEMENT NO.: 3

ASSURED: STATE OF FLORIDA, AS PER ENDORSEMENT NO. I

EFFECTIVE DATE: 07/02/2004

SCHEDULE OF VESSELS - HULL CLAUSES

esse rem.

'········ .. ··'·· ... ·····1 1 ..... 1 ........ •·~' FAU --91 Reseafcll''Dceaneer'v"'. 6 ··155 118' ___ !Aluminum :D-904np- - $35,000 -$10~000.·;···2.00% .. • ... $7 .. 0 ..... 01,.

1 : --- , I ----·;·-1·--- - __ ·: ·----------------- --------

FWC ~-03TE'Patrof''Ranaalr ·~--+--3~64-, .-·· ··· 17 Aluminum ;0=2600~$l~f58~0~0'9;-$Z5,nob;--·rT5% ___ $T3~3l71•.

FWC. ,D4Seadoo;·Model'#6147 6 :10-:-sr- ... 4 Fiberglass [G~155hp $TO-;-O'OO; $1,000~--4:-00¾', $400 FWc--·-j77paytrol Boat"Drfon' 1 · i 50' , 16' I Aluminum ·:o-:2600hp7-$275-;-ff00:-$50,b00i ............ 1 20%1- . $3,300 FWC- -T6TPatrol Boat"JJ'Brown' 1 · tff5 i 18' 1Aluminum

I D-::2600hp 1 ""$282~555-· -i,-so,ooo~ .. ··r2·0%T'·· '$3,391

~~g__;g~~~~~~n,,~~:~~~~~latrorm ~-~-~ Gi :~;- 1::~:~~: i~ii~~•-~~~g~~ ~~;;~ggg~~ ~~g~ ·· ~i~~;g i , B-i ·42 15•-- IFioerglassfD~eoolip • $197;925•·--$ro-;-ooo:···· 2.so¾··· $4;933 199.RV"D1scovery''

UF

OSF . "196Research "Subchaser" i. '.2---1 !37'·· Irn Aluriiinuriilff:-2oohp •.. $180,000! $30,00J)~.----r.50% osF ---,66-Researcn7 'BeJ1ows"-- ······· · r--·2--,-;11• 20· Steel ·-o-=-.foanp--· $149,379'-$so;o-off·- 1.30% USF- 16TResearch "Suncoaster' • 3 Grn5•-··24' -- ·stee D-=800hp C '$225;000--$50,.0DO . · 1.50%

~~g=· ······•~t~f~::::;~~::~i~!~1~:~ .. ·i. ~--iii 'Ii:: ..... ---l~i~E~~S-~g::~~~~-: ·. ~:::~:!~

• $2,830,110

All other policy terms and conditions remain unchanged

DATE: J.iB.Jo~ ~cu~ ART OCEAN MARINE DEf'-

$10,00'0 N/A

. $2,500

2.00%' N/A

3.00%

$2,700 $1,942 $3;3"75

$2,637 $0

$1,146

$40,625

ENDORSEMENT NO.: 4

ASSURED: STA TE OF FLORrDA. AS PER ENDORSEMENT NO. 1

EFFECTIVE DATE: 07/02/2004

Hull Clauses - Terms and Conditions

The terms and conditions as set forth below shall supersede and nullify the clauses of the policy insofar as such clauses are inconsistent with the clauses set forth below:

1. Navigation Warranty It is warranted that the vessel (s) hereby insured shall be confined to the use and navigation of the / waters specified in Endorsement No. 2 to this policy.

2. Automatic Acquisition:

Subject to terms, conditions and limits of liability of this policy, it is understood and agreed that this policy covers automatically each vessel newly acquired, purchased, or chartered by the Assured wherein the Assured is required to carry the insurance on the vessel. It is further agreed that the Assured shall give notice to the undeIWriters as soon as possible, but not more than sixty working days afteJWard, with respect to such acquisition. Premium shall be paid at pro-rata of rates to be agreed.

The agreed valuation for Hull Insurance shall be as follows:

With respect to purchased vessels:

The Purchase Price:

With respect to chartered vessels:

The amount set forth in the charter party executed by Assured and vessel owner, or in the event of an oral charter, the amount agreed upon by the Assured and the owner, but in no event shall the amount be more that the original purchase price, or the amount the chartered vessel was insured for prior to being chartered to the Assured.

The maximum Hull Value any one vessel may be insured for under this automatic acquisition clause 1s $500,000.

At undeIWriters option, a condition and value survey may be required on any newly acquired vessel, and the Assured shall comply with all reasonable safety recommendations stated by the Surveyor. If a survey is required by undeIWriters, it shall be made at UndeIWriters expense, unless otherwise agreed.

3. Vessels:

If more than one vessel is named in this policy, all clauses shall apply as though a separate policy has been/ issued for each vessel.

4. Occurrence:

Each occurrence shall be treated separately, but a series of claims hereunder arising from the same occurrence,/ shall be treated as due to that occurrence

5. Repairs, Alterations ·whenever the vessel named herein during the currency of this policy ls undergoing repairs, alterations, building, rebuilding out-fitting or overhauling by any recognized ship repairer or builder, this policy shall pay for physical loss or damage to the vessel (s) named herein, to the extent of any peril not recoverable hereunder that is recoverable under the terms of the American Institute Builder's Risk Form (13-L) February 8, 1979 subject to however to this policy's deductible average, agreed valuation and amount insured hereunder.

6. Strikes. Riots and Civil Commotion:

In consideration of an additional premium as provided below, this insurance is extended to cover additional risks, in accordance with the following clause:

"This insurance also covers damage to or the destruction of the property insured directly caused by strikers, locked out worlanen, or persons taking part in labor disturbance-s or riots or civil commotions or caused by vandalism, sabotage, or malicious mischief. but excluding civil war, revolution, rebellion or insurrection, or civil strife arising therefrom and warranted free from any claim for delay, detention or loss of use, and free from al1 loss, damage or expense caused by any weapon of war employing atomic or nuclear fission and/or fusions or other reaction or radioactive force or matler.

Notwithstanding the exclusion in the F.C. & S. Clause within tbe policy "vandalism", "sabotage" and "malicious mischief' as used herein, shall be construed to include willful or malicious physical injury to or destruction of the described property 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 operations of military or navel armed forces in tbe country where the described property is situated.

"Until further notice the Assured shall pay, for the additional protection afforded by the above clause, an additional premium of Slncluded. The Undenvrites have the right nevertheless to change this rate at any time on (15) fifteen days written notice to the Assured; but the Assured shall have the option to cancel this endorsement as of the time when such change of rates would take effect, provided previous notice of such cancellation be given to the Underwrites.