OCEAN MARINE CARGO INSURANCE CLAUSES

Scope of Cover
This insurance is classified into the following three Conditions ----
Free From Particular Average (F. P. A. ), With Average (W. A.) and All
Risks. Where the goods insured hereunder sustain loss or damage, the
Company shall undertake to indemnify therefor according to the Insured
Condition specified in the Policy and the Provisions of these Clauses:

1. Free From Particular Average (F.P.A)
This insurance covers:

(1) Total or Constructive Total Loss of the whole consignment hereby
insured caused in the course of transit by natural calamities ----- heavy
weather, lightning, tsunami, earthquake and flood. In case a constructive
total loss is claimed for, the Insured shall abandon to the Company the
damaged goods and all his rights and title pertaining thereto. The goods
on each lighter to or from the seagoing vessel shall be deemed a separate
risk.
"Constructive Total Loss" refers to the loss where an actual total
loss appears to be unavoidable or the cost to be incurred in recovering or
reconditioning the goods together with the forwarding cost to the
destination named in the Policy would exceed their value on arrival.

(2) Total or Partial Loss caused by accidents ----- the carrying
conveyance being grounded, stranded, sunk or in collision with floating
ice or other objects as fire or explosion.

(3) Partial loss of the insured goods attributable to heavy weather,
lightning and/or tsunami, where the conveyance has been grounded,
stranded, sunk or burnt, irrespective of whether the event or events took
place before or after such accidents.

(4) Partial or total loss consequent on falling of entire package or
packages into sea during loading, transhipment or discharge.

(5) Reasonable cost incurred by the Insured in salvaging the goods or
averting or minimizing a loss recoverable under the Policy, provided that
such cost shall not exceed the sum Insured of the consignment so saved.

(6) Losses attributable to discharge of the insured goods at a port of
distress following a sea peril as well as special charges arising from
loading, warehousing and forwarding of the goods at an intermediate port
of call or refuge.

(7) Sacrifice in and Contribution to Genera Average and Salvage
Charges.

(8) Such proportion of losses sustained by the shipowners as is to be
reimbursed by the Cargo Owner under the Contract of Affreightment "Both to
Blame Collision" clause.

2. With Average (W.A.)
Aside from the risks covered under F. P. A. condition as above, this
insurance also covers partial losses of the insured goods caused by heavy
weather, lightning, tsunami, earthquake and/or flood.

3. All Risks
Aside from the risks covered under the F. P. A. and W. A. conditions
as above, this insurance also covers all risks of loss of or damage to the
insured goods whether partial or total, arising from external causes in
the course of transit.

II. Exclusions

This Insurance does not cover:

1. Loss or damage caused by the intentional act or fault of the
Insured.

2. Loss or damage falling under the liability of the consignor.

3. Loss or damage arising from the inferior quality or shortage of the
insured goods prior to the attachment of this insurance.

4. Loss or damage arising from normal loss, inherent vice or nature of
the insured goods, loss of market and/or delay in transit and any expenses
arising therefrom.

5. Risks and liabilities covered and excluded by the Ocean Marine
Cargo War Risks Clauses and Strike, Riot and Civil Commotion Clauses of
this Company.

III. Commencement and Termination of Cover

1. Warehouse to Warehouse Clause:

This insurance attaches from the time the goods hereby insured leave
the warehouse or place of storage named in the Policy for the commencement
of the transit and continues in force in the ordinary course of transit
including sea, land and inland waterway transits and transit in lighter
until the insured goods are delivered to the consignee's final warehouse
or place of storage at the destination named in the Policy or to any other
place used by the Insured for allocation or distribution of the goods or
for storage other than in the ordinary course of transit. This insurance
shall, however, be limited to sixty (60) days after completion of
discharge of the insured goods from the seagoing vessel at the final port
of discharge before they reach the above mentioned warehouse or place of
storage. If prior to the expiry of the above mentioned sixty (60) days,
the insured goods are to be forwarded to a destination other than that
named in the Policy, this insurance shall terminate at the commencement of
such transit.

2. If, owing to delay, deviation, forced discharge, reshipment or
transhipment beyond the control of the Insured or any change or
termination of the voyage arising from the exercise of a liberty granted
to the shipowners under the contract of affreightment, the insured goods
arrive at a port or place other than that named in the Policy, subject to
immediate notice being given to the Company by the Insured and an
additional premium being paid, if required, this insurance shall remain in
force and shall terminate as hereunder:

(1) If the insured goods are sold at port or place not named in the
Policy, this insurance shall terminate on delivery of the goods sold, but
in no event shall this insurance extend beyond sixty (60) days after
completion of discharge of the insured goods from the carrying vessel at
such port or place.

(2) If the insured goods are to be forwarded to the final destination
named in the Policy or any other destination, this insurance shall
terminate in accordance with Section 1 above.

IV. Duty of the Insured

It is the duty of the Insured to attend to all matters as specified
hereunder, failing which the Company reserves the right to reject his
claim for any loss if and when such failure prejudice the rights of the
Company:

1. The Insured shall take delivery of the insured goods in good time
upon their arrival at the port of destination named in the Policy. In the
event of any damage to the goods, the Insured shall immediately apply for
survey to the survey and/or settling agent stipulated in the Policy. If
the insured goods are found short in entire package or packages or to show
apparent traces of damage, the Insured shall obtain from the carrier,
bailee or other relevant authorities (Customs and Port Authorities etc.)
certificate of loss or damage and/or shortlanded memo. Should the carrier,
bailee or the other relevant authorities be responsible for such shortage
or damage, the Insured shall lodge a claim with them in writing and, if
necessary, obtain their confirmation of an extension of the time limit of
validity of such claim.

2. The Insured shall, and the Company may also, take reaconable
measures immediately in salvaging the goods or prevention or minimizing a
loss or damage thereto. The measures so taken by the Insured or by the
Company shall not be considered respectively, as a waiver of abandonment
hereunder, or as an acceptance thereof.

3. In case of a change of voyage or any omission or error in the
description of the interest, the name of the vessel or voyage, this
insurance shall remain in force only upon prompt notice to this Company
when the Insured becomes aware of the same and payment of an additional
premium if required.

4. The following documents should accompany any claim hereunder made
against this Company:
Original Policy, Bill of Lading. Invoice, Packing List, Tally Sheet,
Weight Memo, Certificate of Loss or Damage and/or Shortland Memo, Survey
Report, Statement of Claim.
If any third party is involved, documents relative to pursuing of
recovery from such party should also be included.

5. Immediate notice should be given to the Company when the Cargo
Owner's actual responsibility under the contract of affreightment "Both to
Blame Collision" clause becomes known.

V. The Time of Validity of a Claim

The time of validity of a claim under this insurance shall not exceed
a period of two years counting from the time of completion of discharge of
the insured goods from the seagoing vessel at the final port of discharge.

MARINE CARGO TRANSPORTATION INSURANCE POLICY

Invoice No. Policy No.
This policy of Insurance witnesses that the Insurance Company
(hereinafter called "The Company"), at the Request of ___________________
(hereinafter called the "Insured") and in consideration of the agreed
premium being paid to the company by the Insured, undertakes to insure the
undermentioned goods in transportation subject to the conditions of this
policy as per the Clauses printed overleaf and other special Clauses
attached hereon.

Marks & Nos.
Quantity
Description of Goods
Amount Insured
Total Amount Insured _________________
Premium as arranged
-----------
Rate as arranged
-----------
Perconveyance S. S. __________
Slg. on or abt.________ from ________ to ________
Conditions ________
Claims, if any, payable on surrender of this Policy together with
other relevant documents. In the event of accident whereby loss or damage
may result in a claim under this Policy immediate notice applying for
survey must be given to the Company's Agent as mentioned hereunder.
______ Insurance Company
Claim payable at __________________
Address of Issuing Office _________________
BUSINESS DEPARTMENT
Our Contract Template Database is complied in accordance with laws of P.R.China.This English document is translated according to its Chinese version. In case of discrepancy, the original version in Chinese shall prevail.