American Institute

INCREASED VALUE AND EXCESS LIABILITIES CLAUSES

(November 3, 1977)

To be attached to and form a part of Policy No________________________________________ of the ________________________________________________________________________________

The terms and conditions of the following clauses are to be regarded as substituted for those of the policy form to which they are attached, the latter being hereby waived, except provisions required by law to be inserted in the Policy. All captions are inserted only for purposes of reference and shall not be used to interpret the clauses to which they apply.

ASSURED

This Policy insures________________________________________________________________ hereinafter referred to as the Assured.

If claim is made under this Policy by anyone other than the Owner of the Vessel, such person shall not be entitled to recover to a greater extent than would the Owner, had claim been made by the Owner as an Assured named in this Policy.

Underwriters waive any right of subrogation against affiliated, subsidiary or interrelated companies of the Assured, provided that such waiver shall not apply in the event of a collision between the Vessel and any vessel owned, demise chartered or otherwise controlled by any of the aforesaid companies, or with respect to any loss, damage or expense against which such companies are insured.

This insurance shall not be prejudiced by reason of any contract limiting in whole or in part the liability of pilots, tugs, towboats, or their owners when the Assured or the Agent of the Assured accepts such contract in accordance with established local practice.

LOSS PAYEE

Loss, if any, payable to_____________________________________________________________ or order.

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

On INCREASED VALUE AND EXCESS LIABILITIES of the Vessel called the______________________________________ (or by whatsoever name or names the said Vessel is or shall be called).

AMOUNT INSURED HEREUNDER

______________________________________________________________________ Dollars.

DURATION OF RISK

From the _______________day of _______________19____, __________________________time

to the ________________day of _______________19____, ___________________________time.

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 given to the Underwriters, be held covered at a pro rata monthly premium to her port of destination.

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

PREMIUM

The Underwriters to be paid in consideration of this insurance __________________________________________________________________________________________ Dollars being at the annual rate of ____________________ per cent, which premium shall be due on attachment. If the Vessel is insured under this Policy for a period of less than one year at pro rata of the annual rate, full annual premium shall be considered earned and immediately due and payable in the event of Total Loss of the Vessel.

RETURNS OF PREMIUM

Premium returnable as follows:

Pro rata daily net in the event of termination under the Change of Ownership clause;

Pro rata monthly net for each uncommenced month if it be mutually agreed to cancel this Policy;

For each period of 30 consecutive days the Vessel may be laid up in port for account of the Assured,

____________________ cents per cent. net not under repair, or

____________________ cents per cent. net under repair;

provided always that:

(a) a Total Loss of the Vessel has not