Section 1

Cover hereunder includes all those costs and expenses necessarily incurred by a Member (including the costs of an opponent party where such costs are ordered to be paid by a court or tribunal of competent authority, or are to be paid pursuant to the terms of any settlement concluded with the express approval in writing of the Managers) in pursuing or defending claims, or in seeking to resolve disputes, on such terms as the Managers shall have approved in writing, arising in respect of the following:

               i.                  any contract for the building of an insured vessel, which has the prior approval in writing of the Managers.

              ii.                  any contract for the purchase or sale of an insured vessel which has the prior approval in writing of the Managers.

            iii.                  any contract for the conversion, alteration, repair, refit, drydocking or maintenance of an insured vessel.

            iv.                  any charterparty, contract of carriage, bill of lading or contract of affreightment, to which a Member is party in respect of an insured vessel and disputes as to the rights of the parties under, or legal effect, of any such charterparty, contract of carriage, bill of lading or contract of affreightment.

             v.                  any contract for operational services provided to or in respect of an insured vessel, including but not limited to agency, stevedoring, towage or salvage, or harbor authority services.

            vi.                  any contract for administrative services provided to or in respect of an insured vessel for insurance broking or ship broking services, management services or the provision of technical advice.

          vii.                  any contract in respect of goods or materials, necessaries and stores including bunkers and lubricating oil provided to an insured vessel.

         viii.                  the employment of seamen.

             ix.                  any contract of marine insurance in respect of an insured vessel, or which a Member contends covers an insured vessel, other than that evidenced by the cover provided hereunder or otherwise provided by the Association.

              x.                  any damage to an insured vessel, detention of an insured vessel, or the impairment of any right of a Member in respect of an insured vessel, caused by any third party.

             xi.                  general average contributions.

           xii.                  the presence on board an insured vessel of stowaways, refugees or persons rescued at sea.

          xiii.                  the handling, loading, stowing, lashing and discharge of cargo which is to be carried, which is carried or which has been carried on board an insured vessel.