At its meeting on November 1st 2002 and January 21st 2003 the Board of Directors decided on its policy with regard to premium and deductibles for the policy year February 20th 2003 to February 20th 2004.

Premiums
All premiums are quoted in US Dollars (USD) and are debited as advance and supplementary calls. It is anticipated that this policy year will be closed in the year 2005. The Board decided that the premium shall be debited in four instalments: at inception, February 20th, May 20th, August 20th and November 20th. There is a minimum premium of three months.

Supplementary call
The supplementary call for this year will initially be decided upon in 2004. The current estimated supplementary call for 2003/2004 is 0 %. Release call The release call for 2003/2004 is 25 %.

Payment of premium
Premiums are to be paid in accordance with the enclosed “Procedures for Payment of Premium“.

Renewals
The premium for 2003/2004 will be based on the Member’s record for the five year period 1997-2001, including current year if adverse. Records and claims summaries are now available through the Swedish Club extranet, SCOL. The information is updated overnight.

Deductibles/Excess
There is no deductible for the FD&D cover. The Association, however, does not cover disputes involving amounts of USD 5,000 or less, although advice is available on a case-by-case basis.

Lay-up returns
Lay-up returns are not granted for FD&D cover.

Limit of Cover
The Association offers unlimited cover for Owners’ entries. (See also Rules 5 and 6 in respect of Discretion of the Association)

Old Years
The current position on the old years is as follows:

---

Year

Status

Estimated Additional Call

Release Call

---

1999/2000 and earlier	Closed	–	–
2000/2001	Open	0 %	25 %
2000/2001	Open	0 %	25 %
2002/2003	Open	0 %	25 %
2003/2004		0 %	25 %

---

Special Cover

The Association may cover newbuilding and conversion risks at special limited conditions.

Charterers’ FD&D Cover

Premiums
The premium for Charterers’ FD&D is fixed and thus not subject to any supplementary calls. There is a minimum premium of six months.

Payment of premium
Premiums are to be paid in accordance with the enclosed “Procedures for Payment of Premium“.

Renewals
The premium for 2003/2004 will be based on the Member’s record for the five year period 1997-2001, including current year if adverse.

Deductibles/Excess
There is no deductible for the FD&D cover. The Association, however, does not cover disputes involving amounts of USD 5,000 or less, although advice is available on a case-by-case basis.

Limit of Cover
The Association’s cover is limited to USD 400,000. (See also Rules 5 and 6 in respect of Discretion of the Association).

Yours sincerely,The Swedish ClubFrans Malmros