GUIDE to TOMAC ARBITRATION
 
COMPLETION OF THE ARBITRATION PROCEDURE

1. Withdrawal of Arbitration Procedure by the Parties

(1) Notice of Withdrawal of Arbitration
(Sample)
20 October, 1994

 
S.S. Heisei Maru Arbitration Panel
Mr. Zento Suzuki
Mr. Eihei Garamori
Mr. Daikichi Sato

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

Thank you for your various efforts in the above captioned matter.

The arbitration proceedings had gone on for over 5 months and we had already experienced 2 hearings when there was a proposal from the Respondent agent Morio Yamakawa that we have a discussion. This past 15 October we held a meeting with the Respondent agent.

Then on 17 October Respondent Representative Sakae Hirano also joined the discussions. As a result of an exchange of opinions on a variety of details, the Respondent agreed to immediately pay the Claimant Yen5,000,000 on the condition that there be no further questions on the matter. Payment was settled on this day.

We hereby notify you of our withdrawal of the arbitration application as of today.

We are most grateful to the busy arbitrators for the time and effort expended in the arbitration of this dispute.

Claimant Representative: Namio Umino (signature)

Attached documents:
Memorandum of agreement to withdraw arbitration of the dispute over the time charterparty for the S.S. Heisei Maru dated 20 October, 1994.

Explanation of the Notice of Withdrawal of Arbitration
The arbitration panel should be notified immediately when the parties have reached a settlement on the basis of talks between the parties.

In the example the Claimant has submitted the notice of withdrawal, but because the arbitrators must objectively confirm whether the parties have actually reached a settlement, it is necessary to attach a copy of the settlement agreement to the notice of arbitration withdrawal. Although the form of the settlement agreement is not predetermined, it must clearly express that all parties have agreed to the withdrawal of the arbitration.
<NEXT PAGE>

[BACK TO GUIDE TOP]