MA-942 Interim Binder of Insurance

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The United States of America, represented by the Maritime Administrator, acting for the Secretary of Transportation, in
consideration of $
received as the binding fee. and premium as provided for hereinafter, hereby
insures, in accordance with applicable provisions of law and subject to all limitations thereof, particularly Title XII of
Merchant Marine Act. 1936. as amended. against:

0 War Risks Hull
0 War Risk DisbursementsEndorsements
0 War Risk Protection and Indemnity Liabilities

0 Second
Warby
Risk
Liabilities,subjectto the terms,
herein orSeamen's
incorporated
reference:
. conditions,warrantiesand representationsstated
((A) Owner; (B) Charterer; (C) Mortgagee; (0) Other)

Assured(s)

War Risk Hull: Sum insured. as listed for each vessel in Appendix B, but in the event of damage to or actual or
constructive total loss of a vessel listed in Appendix B, the insured value will be not in excess of $
.
which is the stated valuation of the vessel determined by the Secretary of Transportation in accordance with section
1209(a), Title XII of Merchant Marine Act, 1936, as amended. This insurance does not cover loss of disbursements as
a consequence of the actual or constructive total loss of said vessel, but such insurance is available by endorsement
as additional coverage. It is understood that, with respect to damage to or actual or constructive total loss of any
vessel in Appendix B. this insurance for such vessel shall not exceed the "sum insured" or the .stated valuation"
whichever is the lesser amount.

°If this valuation is not inserted when th~ binder is issued. it will be published in the Federal Rtgisteroursuant to 46 CFR 309. as
amended from time to time.

Form MA-942
(Rev. 4-96)

War Risk Protection and Indemnity: Sum insured, as listed for each vessel in Appendix B, but not
exceeding $750 per gross ton of the insured vessel.

SecondSeamen's War Risk: If applicable, loss, if any, payable in accordance with, and the sums insured
are the amounts specified in, the applicable provisions of the Second Seamen's War Risk Policy (1955), or
as modified by shipping articles, collective bargaining agreements or other applicable employment
agreements which are in effect as of the date of a casualty involving the subject vessel. If Second
Seamen's coverage is provided herein, then upon the attachment of this binder, the number of crew
members and modified benefits payable as of that date shall be declared immediately to the Underwriting
Agent. Any subsequent changes shall be likewise declared and additional premium paid, if required.

Attaching automatically (a) upon and simultaneously with the outbreak of war, (whether there be a
declaration of war or not) between any of the following countries: United States of America, United
Kingdom, France, the Union of Soviet Socialist Republics, or the People's Republic of China; or (b) upon
and simultaneously with the occurrence of any hostile detonation of any nuclear weapon of war employing
atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wheresoever or
whensoever such detonation may occur and whether or not the vessel may be involved.
Terminating thirty (30) days after attachment.
Assured to have privilege of deferring attachment by giving written or telegraphic notice to the Underwriting
Agent prior to attachment of risk.
This binder shall automatically expire at midnight, June 30, 2000, G.M. T., unless insurance hereunder has
attached prior to that date.

Warranties, terms, and conditions: warranted free from any claim for loss, damage or expense covered
under any commercial policy in effect for the benefit of the assured.
Warranted free from any claim for loss. damage or expense which is or could be covered by a commercial
war risk policy containing the American Institute Hull War Risks and Strikes Clauses (including Automatic
Termination and Cancellation Provisions) for attachment to American Institute Hull Clauses. December 1.
1977.
Warranted, as to a vessel in any eligible category of the application, that at all times during the binder
period or any period of insurance attaching hereunder, the vessel will comply with Department of
CommercefTransportation Orders T-1 and T-2 (44 CFR Parts 401, 402, and 403) or any modification
thereof so long as they remain in force.
Warranted, as to a vessel in any eligible category of the application, that at all times during the binder
period or any period of insurance attaching thereunder, the vessel, by action of its owner or master, will
comply with the requirements of the United States vessel position reporting system as prescribed in 46
CFR 308.2(c).
Warranted, as to a vessel in any eligible category of the application, that, without prior approval of the
Maritime Administration, the vessel will not, at any time during the binder period or any period of insurance
attaching hereunder, be chartered for a period of longer than six (6) months, or for a voyage or voyages
the duration of which will probably exceed six (6) months, to any person not a citizen of the United States,
nor be chartered to such a non-citizen under a demise or bareboat form of charter, nor be chartered to
such a non-citizen for the carriage of cargoes of any kind to or from any of the countries listed in 46 CFR
221.7 or any modification thereof so long as it remains in force, or for use in the fisheries.

Warranted further, as to a vessel in category (a) of the application, that at and from the date of issuance of
the binder and for and during the term of any insurance attaching hereunder, such vessel is eligible within
its category, and if at any time during the binder period or after insurance attaches such vessel shall cease
to be eligible within its category, the binder and any insurance provided hereunder shall automatically
terminate at the time of such change, without return of binding fee or premium, unless the Maritime
Administration agrees otherwise; and as to a vessel in category (b)(1) or (b)(2) of the application that such
vessel will maintain its eligibility within its applicable category at all times from and after the issuance of
this interim binder, and will be made available to the U.S. Government upon request in the event of
national emergency, pursuant to the terms of the Contract of Commitment executed by the assured; and as
to a vessel in category (c) of the application that at all times such vessel will remain in the approved
service which the Maritime Administrator found to be in the interest of the national economy or the national
defense of the United States; and in the event of the breach of any warranty contained in this paragraph,
such binder and any insurance attaching thereunder, shall automatically terminate at the time of such
breach, without return of binding fee or premium, unless the Maritime Administration agrees otherwise.
There shall be deemed to be incorporated herein (a) any other warranties of the applicant (express or
implied) and all representations and agreements which are made a part of the application, and (b) all of the
terms, conditions and warranties contained in the war risk hull insurance policy, and disbursement.
endorsements, war risk protection and indemnity insurance policy, and Second Seamen's War Risk Policy
(1955) respectively, set forth in 46 CFR 308.107, 308.207 and 308.306, as applicable. To the extent there
is inconsistency between the terms of any of the applicable war risk policies and terms of this binder
including the warranties, agreements and representations of the applicant, the terms of the binder together
with the warranties, agreements and representations of applicant shall prevail.
PREMIUM: Rate to be fixed promptly after the happening of the event causing the "American Institute Hull
War Risks and Strikes Clauses (including Automatic Termination and Cancellation Provisions) for
attachment to American Institute Hull Clauses, December 1, 1977" of any war risk policies to become
operative and the premium shall be payable within ten days after receipt of notice of the amount thereof by
the assured. Premium shall be paid to the Underwriting Agent that issued the binders by check payable to
the order of "Maritime Adm.-Transportation."
Privilege is granted to effect, on an excess basis, additional war risk hull insurance, or additional war risk
protection and indemnity insurance, which insurance shall not inure to the benefit of the Maritime
Administrator, as underwriter.

CLAIMS: Casualties arising after attachment of war risk hull insurance, with or without war risk
disbursements endorsement, hereunder shall be reported promptly to the Underwriting Agent and all claim
documents shall be likewise filed with such Underwriting Agent, but payment of the amounts due in
settlement of claims will be made by the Maritime Administrator. Casualties arising after the attachment of
war risk protection and indemnity insurance or second seamen's war risk insurance hereunder shall be
reported promptly to the Attention: Director, Office of Subsidy and Insurance, Maritime Administration,
Washington, D.C. 20590, and all claim documents shall likewise be filed with such office.