Hamburg / Bremen

Edition I – 2005

as adopted in the Members' Meeting on November 19， 2004

Index

§ 1 Scope of Application

§ 2 Choice of Arbitrators

§ 3 Number of Arbitrators

§ 4 Appointment of Arbitrators

§ 5 Duties of the Arbitrators (New § 5 - 4. and 5.)

§ 6 Challenging an Arbitrator

§ 7 Costs

§ 8 Place of Arbitration， Registration of the Proceedings

§ 9 Institution of Proceeding

§ 10 Procedural Principles

§ 11 Arbitral Proceedings

§ 12 Applicable Law

§ 13 Arbitral Settlement

§ 14 Award

§ 15 Services and Competent State Court

§ 1 Scope of Application

Where the parties to a contract have agreed that disputes between them shall beresolved in accordance with the rules of the German Maritime ArbitrationAssociation (GMAA)， these rules shall apply.

The parties may amend or supplement these rules for any individual dispute. Inthe event， however， that the arbitrators have already been appointed， suchamendments or supplements are allowed only with their consent.

§ 2 Choice of Arbitrators

The parties are free in their choice of arbitrators， unless they have agreed inthe arbitration agreement upon the person or particular qualifications of thearbitrator to be appointed.

At the request of a party the Chairman of the Board of the GMAA shall proposearbitrators to choose from.

§ 3 Number of Arbitrators

The arbitral tribunal shall consist of two arbitrators unless the parties haveagreed that it shall consist of three or a single arbitrator.

§ 4 Appointment of Arbitrators

If the arbitral tribunal consists of two arbitrators， each party shall appointone arbitrator. If the two arbitrators cannot agree on a decision in theproceedings they shall forthwith appoint a third arbitrator as umpire.

If the arbitral tribunal consists of three arbitrators， each party shall appointone arbitrator. The two arbitrators shall forthwith appoint the third arbitratoras umpire.

If a party fails to appoint an arbitrator within two weeks after being requestedto do so in writing by the other party， the Chairman of the Board of GMAA or hissubstitute shall appoint the arbitrator at the request of the other party. Thesame shall apply in respect of the appointment of a substitute arbitrator if themandate of an arbitrator terminates in the course of the arbitral proceedings.

If - where subpara 1， sentence 2 or subpara 2， sentence 2， above applies - thetwo arbitrators cannot agree forthwith on the appointment of an umpire theChairman of the Board of GMAA or his substitute shall appoint the umpire at therequest of one party. The same applies if the parties， having agreed on a singlearbitrator， cannot agree on the appointment of such arbitrator.

The appointment of an arbitrator or umpire becomes valid upon his agreement andthe notification of the parties of such appointment.

§ 5 Duties of the Arbitrators

Every arbitrator shall be obliged to impartiality and the observation of strictsecrecy.

The arbitrators shall carry on the proceedings – within the limits of theapplications of the parties - expeditiously and bring them to an end within areasonable period of time.

The arbitrators shall preserve the files of the tribunal for five years aftertermination of the proceeding pursuant to § 11， subpara 8.

An arbitrator shall not be liable with respect to his decisions， except that hemay be liable for the consequences of his conscious and deliberate wrong doing.

With respect to any other act or omission in connection with an arbitration， anarbitrator shall only be liable for the consequences of his gross negligence orhis conscious and deliberate wrong doing.

§ 6 Challenging an Arbitrator

Any arbitrator may be challenged by a party in the event that

a) a state judge is excluded from the performance of his judicial

office or

b) there is reason that justifies doubts as to his impartiality or

c) he improperly delays the performance of his arbitral duties.

Each arbitrator is obliged to disclose all circumstances that might justify hischallenge at any stage of the proceedings to the parties.

A party can challenge the arbitrator appointed by it only for causes that itbecame aware of after his appointment.

Challenge must be declared to the arbitral tribunal as well as to the otherparty and substantiated

forthwith as soon as the party concerned becomes aware of the cause(s) for suchchallenge.

The appeal state court (Oberlandesgericht) which has jurisdiction at the placeof arbitration shall rule over such a challenge， unless the other party acceptsthe challenge within two weeks after having been informed or the challengedarbitrator terminates his mandate within the same period of time.

Should the other party accept the challenge or should the arbitrator terminatehis mandate after having been challenged or such challenge be confirmed by afinal state court ruling， the arbitrator shall be excluded from his mandate. Theparty who appointed him or could have done so shall appoint another arbitrator，or the two arbitrators shall appoint another umpire. § 4 subpara 3 and 4 shallapply mutatis mutandis.

An arbitrator having been effectively challenged shall reimburse any feesalready received.

§ 7 Costs

The arbitrators are entitled to remuneration (fees， reimbursement of expensesand value added tax) for which the parties are jointly and severally liable.

In respect of such remuneration， the GMAA Rules on the Remuneration of theArbitral Tribunal shall apply. They shall be considered part of theseArbitration Rules. At the request of the tribunal， advance payments shall bemade， each party paying half.

Upon the request of the other party， the arbitral tribunal shall decideaccording to its reasonably exercised discretion whether， and， if so， to whatextent a foreign claimant or counter-claimant is obliged to grant security forcosts of the proceedings.

Each party shall， to the extent of his unsuccessfulness， bear the remunerationof the arbitrators as well as costs and expenses incurred by him and shallreimburse the other party in respect of the costs and expenses incurred by thatother party， provided that such costs and expenses were necessary in order toappropriately pursue or defend the claim. Fees for a person representing a partyin the proceedings are only reimbursable up to the amount according to the Lawon the remuneration of Lawyers (RVG) in respect of appellate proceedings.

§ 8 Place of Arbitration， Registration of the Proceedings

Unless the parties have agreed upon the place of arbitration， the arbitraltribunal shall determine either Hamburg or Bremen as place of arbitration.

The arbitral tribunal informs the secretary of GMAA about each proceedingcommenced before them and on its termination. The arbitral tribunal sends thesecretary a copy of each award or order， by which the proceeding is terminatedin accordance with § 11 subpara 8.

§ 9 Institution of Proceedings

The arbitral proceedings commence when the defendant receives from the claimantthe written nomination of the arbitrator appointed by him. Such nomination mayalso be effected by telegraph telex or telefax.

§ 10 Procedural Principles

The arbitral tribunal shall have the power to decide whether the arbitrationagreement is legally effective and whether the tribunal is properly constitutedand has jurisdiction for the decision of the dispute. If a party challenges thejurisdiction of the arbitral tribunal， the tribunal can decide by interim awardif it holds that it has jurisdiction; an appeal against such award to the statecourt does not prohibit the continuation of the arbitral proceedings.

The tribunal shall hold oral proceedings， unless both parties have agreed ondocuments-only arbitration.

The arbitral tribunal shall grant the parties at any stage of the proceedingsdue process of law to a sufficient extent.

The tribunal shall grant the parties sufficient periods of time to present theirstatements and to comply with the tribunal's orders.

Where a party does not present its statement within the period of time fixed bythe arbitral tribunal or does not comply with the tribunal's orders in due time，such default shall not be considered as admission of the factual allegations ofthe other party. The arbitral tribunal shall rather consider such defaultaccording to its free conviction.

§ 11 Arbitral Proceedings

The arbitral tribunal shall investigate the facts submitted by the parties ofthe dispute as far as it deems necessary. For this purpose it may issue ordersto the parties， summon and hear witnesses， appoint experts and demand thepresentation of documents and other matters of relevance as evidence. Thetribunal is not bound by the parties' offers to produce evidence.

One arbitrator shall minute each hearing and forward the minutes to the parties.The record of the hearing of evidence shall be dictated in the presence of theparties.

The arbitral proceedings shall be conducted in German， unless the tribunalorders that proceedings shall be conducted in English. Other languages may onlybe used with the consent of the tribunal and the parties.

The statement of claim， summonses and orders of the tribunal fixing a period oftime shall be served on the parties， unless the parties have agreed on adifferent manner of notification.

The arbitral tribunal shall ensure that the parties transmit all pleadings andother statements to each other in duplicate and an additional copy to eacharbitrator forthwith.

Each party may authorise a person as his representative in the proceedings.

The arbitral tribunal is entitled to order interim measures to secure evidence.It is not entitled to order other interim measures with regard to the matter indispute.

The arbitral proceedings are terminated by an award or by an order of thearbitral tribunal. The order for the termination of the arbitral proceedingsshall be issued when

a) the claimant fails to present his statement of claim within the time limitagreed with the arbitral tribunal or set by it or

b) the claimant withdraws his claim unless the defendant objects thereto and thearbitral tribunal recognises a legitimate interest of the defendant in obtaininga final settlement of the dispute or

c) the parties agree on the termination of the arbitral proceedings or

d) the parties fail to pursue the arbitral proceedings although having beenrequested to do so by the arbitral tribunal or

e) the continuation of the proceedings has for other reasons become impossible.

§ 12 Applicable Law

Unless the parties have expressly agreed on the application of a specificsubstantive law to the substance of the dispute， the arbitral tribunal willapply German law.

The arbitral tribunal shall decide in accordance with the terms of the contractsconcluded between the parties and shall also take into account the acceptedcustoms of the trade.

The arbitral tribunal may only decide on equitable principles (ex aequo et bono，amiable composition) when it has been expressly authorized by the parties to doso.

§ 13 Amicable Settlement

At every stage of the proceedings， the arbitral tribunal shall consider thepossibility of an amicable settlement of the dispute or of single issues of thedispute and - if it considers it expedient to do so - shall suggest suchsettlement to the parties.

If， during the arbitral proceedings， the parties settle the dispute， thearbitral tribunal shall terminate the proceeding by an order pursuant to § 11，subpara 8. If requested by the parties the arbitral tribunal shall record thesettlement in the form of an arbitral award on agreed terms.

§ 14 Award

The arbitral tribunal decides by majority of votes.

The arbitral tribunal is not permitted to consult advisers.

When rendering its award， the tribunal is bound by the parties' motions.

The arbitral award shall be rendered in writing and state the reasons upon whichit is based. The following has to be included in the award:

a) the names of the parties of the arbitral proceedings;

b) the names of the arbitrators who render the award;

c) the place of arbitration;

d) the date of the drafting of the award;

e) the operative provisions that shall be binding for the parties;

f) the facts of the dispute;

g) the reasons on which the decision is based;

h) the decision which party shall bear the costs of the arbitral proceedings inaccordance

with § 7 subpara 4;

i) the signature of the arbitrators. Where the arbitral tribunal consists ofmore than two

arbitrators and the signature of one arbitrator who voted on the award cannot beprocured，

the signature of the others shall be sufficient. The arbitrators who sign mustnote under

the award that the signature of the one arbitrator could not be procured.

One original of the award shall be served on each party.

Upon the application of a party， the arbitral tribunal shall decide in anadditional award， which may be issued without a hearing， on the amount of coststo be borne by the parties and the reimbursement of same. Subparas 1 to 5 aboveshall apply mutatis mutandis.

Unless a party objects， the arbitral tribunal shall be entitled to publish theaward under the name of the vessel but without specifying details， especiallywithout the names of the parties.

§ 15 Services and Competent State Court

Service pursuant to the terms of these rules shall be effected by the bailiff orby means of registered letter/return receipt requested (Rückschein). If adocument to be served is received by other means， it shall be deemed effectivelyserved at the moment when it was actually received.

If a party has authorized a person to represent him in the proceedings， serviceshall be effected on that person.

Each arbitrator is authorized by the other arbitrators and empowered by theparties to effect service of documents including the award.

The competent state court (§ 1062 ZPO) is the appeal court (Oberlandesgericht)that has jurisdiction at the place of arbitration. For assistance in the takingof evidence and other judicial measures for which the arbitral tribunal lackscompetence (§ 1050 ZPO) the competent state court is the local court(Amtsgericht)， that has jurisdiction at the place of arbitration.