JSE-The Japan Shipping Exchange, Inc.

GUIDE to TOMAC ARBITRATION

ARBITRATOR SELECTION IN ORDINARY ARBITRATION

1. List of Arbitrator Candidates

LIST OF ARBITRATOR CANDIDATES (Sample)

List of arbitrator candidates for the arbitration of the dispute concerning the time charterparty for the S.S. Heisei Maru.

[Category] __________[Order]____________ [Candidate] ___________[Affiliation, etc.]

A *1
___________________________ 2___________________ Masagi Tanaka ______Tanaka Shipping Co., Ltd. G.M. of Marketing
___________________________3____________________ Kohei Kimura_______ Kimura Shipping, Director_________________________
___________________________1____________________ Zento Suzuki ________Suzuki-Line, Dir., G.M.___________________________

B
___________________________ 1_____________________ Daikichi Sato ________Sato Shipping, Exec. Dir.________________________
___________________________2______________________Yoshimasu Saito ____Saito Steamship, Rep. Dir._______________________
___________________________ 3_____________________ Tomio Watanabe ___Watanabe Shipping, Dir.___________________________

C
___________________________3______________________ Otsunari Kono _____Kootsu Univ., Prof. of Law_______________________
___________________________ 1 ______________________Eihei Garamori______Nanboku Univ. Prof of Economy________________
___________________________2______________________ Anzo Yoshinari _____Lawyer (Yoshinari Law Office)__________________

1 July, 1998 *2
Company Name: Kofuku Shipping
Rep. Dir. Namio Umino (Signature)

Explanation of List of Arbitrator Candidates

In the case of Ordinary Arbitration, within 14 days of either the day on which the Respondent submits their defence or the day on which the Respondent should have submitted their defence whichever comes first, the TOMAC Arbitrator Selection Subcommittee selects from its Panel of Arbitrators, arbitrator candidates appropriate to conduct the proceedings. The arbitrator candidates are selected based upon the Subcommittee's understanding of the nature of the arbitration in question. The Subcommittee's understanding of the nature of the arbitration in question is made by examining the arbitration application and defence submitted by the parties. When there are an insufficient number of appropriate candidates, the Subcommittee will go outside the Panel to make their selection.

(Note 1.) Because in principle three arbitrators are to be selected, three groups are formed, for instance, three shipping people, three consignees and three insurers. The parties may indicate an order of desirability next to the names@in each group. When completed this form is returned to the TOMAC Secretariat. This sample is hypothetically based on what TOMAC would send to the parties in the case of an arbitration of a dispute relating to the Heisei Maru. In this hypothetical case one of the parties, Kofuku Shipping, filled out the form and returned it to TOMAC. The Arbitrator Selection Subcommittee selects three arbitrators with due respect for the views of the parties.

(Note 2.) A party who has completed the form indicates the date and party name.

With respect to the selection of arbitrators in Simplified Arbitration and in SCAP Arbitration, the TOMAC Arbitrator Selection Subcommittee makes the selection internally without utilizing the open candidate system.

2. Notice of Arbitrator Appointment

(Sample)

TOMAC No. 123
8 June, 1994

Claimant's Representative: Mr. Namio Umino*1
Respondent's Representative: Mr. Morio Yamakawa

NOTICE OF ARBITRATOR APPOINTMENT

Arbitration of the Dispute Relating to the Time Charter for the S.S. Heisei Maru

This form constitutes notice that in accordance with Section 15 of the Rules of Maritime Arbitration of the JSE*2 we hereby appoint the following as arbitrators in the above-captioned case.

Eihei Garamori (Nanboku Univ.)

Daikichi Sato (Sato Shipping)

Zento Suzuki (Suzuki Line)

Hereinafter*3 this arbitration shall proceed independently from the JSE and TOMAC under the direction of the above-mentioned three arbitrators (arbitration tribunal). Communication should be directed to the TOMAC Secretariat.

Copies for Arbitrators: Messrs. Garamori, Sato and Suzuki

TOMAC
Chairman

Explanation of Notice of Arbitrator Appointment

Because the arbitrators are finally selected by the TOMAC, when the selection is complete all of the parties (two in the sample) are notified. Even when the parties select the arbitrator, the selection is treated as though it were made by the TOMAC Arbitrator Selection Subcommittee. Thereafter, the proceedings go ahead the same as any other TOMAC arbitration.

(Note 1.) When TOMAC selects the arbitrators, the Chairman of TOMAC notifies both parties with one form addressed to the both.

(Note 2.) The grounds for arbitrator selection are made clear.

(Note 3.) Trust of TOMAC arbitration is based on the independence of the arbitrators from the JSE and from TOMAC as well. Accordingly, all of the clerical work is actually carried out by two specified staff members and secrecy is strictly maintained.

3. Notice of Arbitrator Appointment by the Party

(Sample)

5 May, 1994

To: TOMAC
To: Respondent: Kaisan Bussan

Arbitration of Dispute relating to the Time Charterparty for the S.S. Heisei Maru

In regard to the above-captioned case, the Claimant in accordance with article 24 (arbitration) of the time charterparty for the S.S. Heisei Maru dated 20 October, 1994 (attached as Claimant's Exhibit No. 1), hereby appoints the following as arbitrator.

Mr. Tassei Wakai (Dir., Wahei Products)

Accordingly, we hereby notify you of the above in compliance with Section 15(5) of the TOMAC Rules.

Kofuku Co., Ltd.
Namio Umino, Rep. Dir. (Signature)

Explanation of Notice of Arbitrator Appointment by the Party

When the parties, within an arbitration contract or clause, have agreed to select the arbitrators themselves, they must select the arbitrators from within the Panel of Arbitrators of TOMAC.

This avoids the confusion that would result from selecting an arbitrator who is completely unfamiliar with TOMAC arbitration procedures. In this case, the selection of the arbitrator must be made within 35 days of the day the arbitration application was accepted. Notification of the selection of the arbitrator to both the other party and the Secretariat by using the form like this one is required by the TOMAC Rules. In case notice of the selection is not made within the above-prescribed time, the selection is made by TOMAC.