As described in our circular of 24 November 2015 (No.15-011), the following alterations to the Rules of the Association (the "Rules") will become effective from 12 noon GMT on 20 February 2016 (the 2016 Policy Year). There will also be an alteration to the Special Clauses. The amendments are explained below, and extracts of the relevant provisions are attached hereto.

1. 1. Alterations to the Rules

RULE 19-1(6)(b) and (8) (LIABILITIES IN RESPECT OF SEAMEN)

The purpose of this alteration is to extend the scope of cover for a Member’s liabilities, costs and expenses related to a seafarer’s outstanding wages and other entitlements to a maximum of 4 months in case of the Member’s insolvency, as required by the amended financial security provisions of the Maritime Labour Convention, 2006, which will come into force in January 2017.

RULE 35-1(7) (RISKS GENERALLY EXCLUDED)</P

The purpose of this alteration is to clarify, in accordance with the Pooling Agreement, the risks excluded in respect of an entered vessel carrying out drilling or production operations in connection with oil or gas exploration or production. This exclusion shall not apply if there is a special advance agreement for coverage between a Member and the Association.

RULE 35-1(10) and (11) (RISKS GENERALLY EXCLUDED)

The purpose of this alteration is to clarify, in accordance with the Pooling Agreement, what is excluded by this Clause but which can be covered if there is a special agreement for coverage in advance between a Member and the Association in respect of the operation of submarines and the activities of professional or commercial divers.</P

1. 1. Alteration to the Special Clauses

SPECIAL CLAUSE FOR VOYAGES　AFFECTED BY SANCTIONS

The purpose of this alteration is to add clauses to allow the Association to cancel any certificate required for the purposes of compliance with international conventions, such as the Protocol of 2002 to the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea, 1974 and the Nairobi International Convention on the Removal of Wrecks, 2007, which have come into force since this Special Clause was introduced.