JSE-The Japan Shipping Exchange, Inc.

GUIDE to TOMAC ARBITRATION

DOCUMENTS RELATED TO HEARINGS

Section 794, Clause 1 of the Arbitration Act provides that the "arbitrators shall hear the parties and make such enquiries into the causes of controversy as they deem necessary." With respect to this point, hearings are considered the most critical aspect of the arbitration proceedings. Consequently, an appearance by the parties themselves, or else by the relevant individuals from the companies involved, is required. The same holds true when an agent has been appointed.

1. Notice of Scheduled Hearing

(Sample)

TOMAC No. 133
11 July, 1994

Claimant Representative: Mr. Namio Umino
Respondent Representative: Mr. Morio Yamakawa

The Japan Shipping Exchange, Inc.*1

Re: Arbitration of the Dispute Arising out of the Time Charter for the S.S. Heisei Maru

In regard to the above-captioned matter the arbitrators in question will be taking your hearing as detailed below.

Date/time: 1400 hours, Wednesday 20 July, 1998
Place: Conference Room of the JSE (3rd F, Wajun Building, 2-22-2 Koishikawa , Bunkyo-ku, Tokyo, tel: 03-5802-8363)

Notify the Secretariat who will be appearing by 19 July, 1998. *2

cc: Arbitrators: Messrs. Suzuki, Garamori and Sato*3

Explanation of the Notice of a Scheduled Hearing

In principle, hearings are conducted in the presence of all (both) parties. The example is for a hearing where both parties appear together. There are, however, times when separate hearings (of the parties) promotes ordering of the factual aspects of the case. The decision of how to proceed with such a case is left to the discretion of the arbitrators. Especially in Simplified Arbitration where the documentation submitted is kept to an absolute minimum, it is considered that stressing individual hearings with a final jointly held mandatory hearing is a fair way to handle matters for the parties.

(Note 1.) This means the Secretariat of the arbitration panel.

(Note 2.) Particularly with respect to parties who have appointed an agent, we request the appearance of someone involved in the matter in order to understand the underlying facts.

(Note 3.) The arbitration panel selects a chairman at their first meeting. Thereafter, the chairman's name is listed first and the other names are listed in an alphabetical order. Although the chairman takes the leadership in discussions, hearings, and witness investigations, all three arbitrators actually have the same authority.

2. Notice of Appearance in Hearing

APPEARANCE NOTICE (Sample)

Re: Arbitration of the Dispute Arising out of the Time Charter for the S.S. Heisei Maru

Appeared for questioning in regard to the above-captioned arbitration.

20 July, 1994

Claimant Representative: Namio Umino (Signature)

Claimant Corporation, General Manager: Koun Tsuoki (Signature)

Claimant Corporation, Accounting Manager: Keisan Zankin (Signature)

Explanation of the Notice of Appearance in Hearing

The notice of appearance in hearing is submitted by the appearing parties on the date they appear.