IRAN SANCTIONS CHECKLIST

  1. This checklist must be completed by the shipper [and HMM] in its entiretyprior to all shipments to Iran (before booking the cargo and undertaking the shipments), bythe shipper [and HMM].
  2. The shipper [and HMM]must confirm that it has completed the checklist by signing and dating the bottom of the checklist.
  3. The shipper must return the completed checklist to HMM before booking the shipment.
  4. HMM may ask further questions or for further documents as a result of the answers provided on the checklist.
  5. HMMretains the right to cancel the shipment with immediate effect and without notice if:
  6. The checklist is not completed and returned to HMM on time (i.e. before the shipment is due to be undertaken), or the checklist is only partially completed; or
  7. The answers within the checklist cause HMM to believe that the shipment might be in breach of any sanctions against Iran.

Checklist / Yes / No / Don't know / Not applicable / Remark
  1. People/entities involved in the shipments
Do the shipper(s), receiver(s)/consignee(s), charterer(s) or sub-charterer(s), or financial institution(s) involved in the shipment, appear on any up to date lists of sanctioned persons or companies (including (but not limited to) lists under the relevant legislation of the US,, UN, EU, exporting country, importing country, flag state)?
Does the vessel being chartered belong to a sanctioned person or entity?
Lists should be checked for each shipment as they are often updated.
  1. Cargo Exporting/Cargo Importing/Flag State
Are you aware of any sanctions that might have been imposed by the exporting or importing country or by a vessel's flag state?
If so, are you likely to be in breach of these sanctions because of the type of cargo carried?
  1. Cargo – Approval to ship
Have you/the shippers obtained the appropriate permit/confirmation/approval/licence from the relevant authorities before shipping the cargo?
If so, have you provided copies of these?
  1. Cargo-General Checks
Do you know the content/type of all cargo and do you have evidence of this?
Has the cargo been correctly declared?
Have you supplied or are you aware of the necessary pre-arrival or pre-departure information to be submitted to the competent customs authority if necessary?
Do you know the intended use/end user?
Is the bill of lading a ''to order'' bill?
Have you sought comfort and undertaken due diligence to ensure that the cargo is not in contravention of any sanctions?
If so do you have evidence of these checks?
  1. Cargo-US-CISADA
Is the cargo a refined petroleum product (RPP) or does the cargo support or directly and significantly contribute to the production of Iranian petrochemicals?
If so, is the value of 1 shipment US$1million or more, or is US$5 million or more in value being shipped in a 12 month period?
Could the cargo support or contributedirectly and significantlyto Iran's petroleum industry/the production of Iranian petrochemicals?
If so, is the value of 1 shipment US$250,000 or more, or US$1 million or more in value being shipped in a 12 month period?
  1. Cargo-US-CISADA
Could the cargo contribute materially to Iran’s ability to acquire or develop:
  1. Chemical, biological or nuclear weapons or related technologies; or
  2. Destabilizing numbers and types of advanced conventional weapons?

  1. Cargo-EU – Dual Use Military/Nuclear
Is the cargo listed in Annexes I, II, III or IV of EU Reg. 961/2010 (as most recently updated)?
If so, are you a person, entity or body within, under the jurisdiction of, incorporated within, a national of, or do business within, the EU?
Do you know the intended end use/user?
Have you sought comfort and undertaken due diligence to ensure that the cargo is not in contravention of sanctions?
If so, do you haverecords of these checks?
  1. Cargo-EU- Petrochemical/Oil and GasIndustries
Might the cargo be used in the refining, production, exploration of crude oil or natural gas including liquefaction of natural gas?
Is the cargo listed in Annex VI of EU Reg. 961/2010 (as most recently updated)?
If so, are you a person, entity or body within, under the jurisdiction of, incorporated within, a national of, or do you do business within, the EU?
  1. Dealings with Tidewater Company/Tidewater Middle East Marine Service/Tidewater Middle East Co
Is the shipment to any port owned or controlled or run by Tidewater (or any other Tidewater entity)?
  1. Payments – to/from Iranian entities
Will payments be made either to or from an Iranian entity or national in connection with the shipment?
If yes:
  1. How much is being transferred and in what currency?
  2. Have the relevant authorities been notified of such payment, and have they granted the required prior permit/confirmation/approval/licence where necessary?
  3. Where are the payments to be effected?
  4. Which parties are making the payments?
  5. Which banks are dealing with the transactions?

CHECKLIST COMPLETED

……………………………2012

By

……………………………….

For and on behalf of

[The shipper]

[By

……………………………….

For and on behalf of

[Hyundai Merchant Marine Co., Ltd.]]

(CustomerLetterhead)

LETTEROFUNDERTAKING

(Date)

To:Hyundai MerchantMarineCo., Ltd.

Vessel:*********** Cargo:CargoDetails Shipper:*********** Consignee:*********** Notify Party: *********** Loading Port: *********** Discharge Port: ***********

DearSirs:

1.We,**********,theShipperoftheabove-referencedCargo,herebywarrantandguaranteethattheCargodoes notcontainanygoodsprohibitedbyanysanction,prohibitionoradverseactioninanyformwhatsoeverby anyState orInternational Organization, which shallexposeor may expose HMMor the Vessel orits Owner/Charterer/Operator/Manager (collectively, “Carrier Interests”) to the risk of any sanctioned activities.

2.Inparticular,butnotonlylimitedtobelow,weherebyundertaketorefrainfromrequestinganycarriage, transportation,trade,orvoyageofanycargowhichinthereasonableopinion of HMMmayconstitute followings:-

(1) Activities which may directly and significantly contribute to the enhancement of Iran’s ability to developpetroleum resources; and/or

(2) ActivitieswhichmayfacilitatethemaintenanceorexpansionofIran’sdomesticproductionofrefined

petroleumproducts,includinganydirectandsignificantassistancewithrespecttothe construction,

modernization,orrepairofoil orpetroleumrefineries.

3.Inaddition,weherebywarrantandguaranteenottoengageinanyactivitieswith,and/ortosupportany entitywhichhasbeendesignatedasasanctionstargetunderlawsorregulationssuchasunderthelistofthe SpeciallyDesignatedNationalsandBlockedPersonsoftheUnitedStates,whichwillexposeormayexpose carrierintereststotheriskofanyactivitiesprohibitedbyanysanction,prohibitionoradverseactioninany formwhatsoeverbyanyStateorInternationalOrganization.

IRAN SANCTIONS

4.IncaseofbreachofParagraphs1,2and/or3abovebyusincluding,butnotlimitedto,Consignee(s),Notify Party,andotherrelatedpartyofBillofLadings,weconfirmandagreethattheCarrierInterests,atanytime, havetheliberty tounload,discharge,abandon,orgiveup theCargoataportorplaceselectedby theCarrier Interests attherisk andexpenseof us.

5.AftertheexerciseofCarrierInterests’libertyassetforthinParagraph4above,theCarrierInterestsshallbe freefromanyresponsibilityforfurthercustodyorcarriageoftheCargoandshallnotbeheldliableforany claims,risks, costs and/orexpenseswithregardtotheCargo.

6.NotwithstandingandwithoutprejudicetoParagraphs4and5above,wehereby acknowledgethatthe CarrierInterestsfullyreserveallrightsandremedieswithregardtothecarriageoftheCargoincluding,but notlimitedto,therighttoclaimforanydamageswhich theymaysufferfromorinconnectionwithour breachofParagraphs1,2and/or3above.

7.IrrespectiveofwhethertoexerciseCarrierInterests’libertyasperParagraphs4and5above, theCarrier

Interestsshallbeentitledtothehighestfreightrateavailableinthemarketforthe wholevoyage.

8.Furthermore,weherebyundertaketorefrainfromarrestingortakinganyactionagainsttheVesselorany othershipinthesameownership,associatedownership,management,controlorpossessionorinitiatelegal proceedingsagainsttheCarrierInterestsinrelationtosuchexercise oflibertyasperParagraphs4and5 above.

9.Inaddition,weshalldefendandholdharmlesstheCarrierInterestsandindemnifythemfor anyandall damagesincludingbutnotlimitedtolossofearnings,courtcostsandlegalfeesifanyofthecargointerests includingbutnotlimitedtotheConsignee,NotifyParty,andotherrelatedpartyoftheBillofLadingarrest ortakeanyactionagainsttheVesseloranyother shipinthesameownership,associatedownership, management,controlorpossessionorinitiatelegalproceedingsagainsttheCarrierInterestsinrelationto suchexerciseofliberty as perParagraphs4and5.

10. ThisLetterofUndertakingshallbegovernedbyandconstruedinaccordancewiththelawsoftheRepublic ofKoreaandanydisputesarisinghereundershallbereferredtoSeoulCentral DistrictCourtwhichwill haveexclusive jurisdictioninrespectthereof.

11. ThisLetterofUndertakingiswhollywithoutprejudicetoanyrightsordefenseswhichtheCarrierInterests may have.

Yoursfaithfully,

(Signature)

(Name)/(Title)

(Company)

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