10 November 2004 TO ALL MEMBERS Dear Sirs CALLS - CLASS 8 - FREIGHT, DEMURRAGE & DEFENCE The Committee has recently reviewed the position in relation to open years and reached the following decisions: 2001/2002: The year should be closed without further call and the surplus transferred to the Closed Year Fund. 2002/2003: The Release Call rate should remain at 20%. 2003/2004: The Release Call rate should remain at 20%. 2004/2005: The estimated Deferred Call should remain at 30% with the Release Call uplift remaining at a further 20%, as for all recent years. The Committee also reached a decision in respect of premium requirements for the forthcoming 2005/2006 Policy Year and did so against the following background: Despite the steady performance of the Class over recent years, its cost base has risen considerably and the Committee considers it would be prudent to act now with a view to safeguarding the reserves from erosion. The Committee has therefore authorised a general increase in the standard Advance Call of 15% for the 2005/06 Policy Year, bringing it to USD14,375 per ship, subject to the normal 25% deductible. Cover can continue to be offered without this deductible, subject to a corresponding increase in the Advance Call rate. The estimated Deferred Call rate has been set at 30% with the Release Call uplift being a further 20%, as for all recent years. Yours faithfully A BILBROUGH & CO LTD (MANAGERS) 8:075