ANNEX 1. The main cargo transport and forwarding conditions in the Sea Commercial port of Mariupol

1. GENERALS

1.1. Legal relations between the port, cargo owners and their forwarders are Based on the Civil, Economic Codes of Ukraine, Merchant Shipping Code of Ukraine, Ukrainian Law 'On transport and forwarding activity', 'Temporary provisions on monthly planning and organization of the export, import, transit cargo carriage performed by rail, sea and river transports' approved by the Decree No. 357, dated 17.05.93. of the Government of Ukraine, Order No. 188, dated 12.03.03 of the Ministry of transport of Ukraine and other normative documents.

The present conditions (hereinafter as TFC) determine the main legal relations between the port and cargo owners connected with handling, storage, warehousing and main cargo transport and forwarding conditions in the limits of the port territory and its water area.

In accordance with the Clause No. 76 of the Merchant Shipping Code of Ukraine, the port provides discharging and loading of the cargoes, storage, lashing and separation of the goods and other operations connected with handling in the port.

1.2. The present conditions do not concern legal relations between cargo cargo owners and any third party. No liability for the port is created with those legal relations. The third party (including a forwarder or agent) is allowed to execute contracts and TFC on behalf of the cargo owner. In this case the cargo owner to be responsible for non-execution of the duties by this third party as his own ones.

1.3. Checking of quality, quantity, completeness of the cargo in the port, if such checking is necessary for the cargo owners, shipowners or charterers , shall be done with participation of an independent commission of experts. Special agreements must be concluded between the abovementioned parties and the experts, and the port must be informed about forthcoming expertise in duly way.

1.4. The present conditions are not applicable to the handling of ships and cargoes by forces and means of clients. In this case the port shall conclude special contracts for handling of those cargoes.

1.5. Handling of the bulk chemical cargo without the port's warehouses use is Effected according to the 'Regulations of mineral fertilizers and other bulk cargoes handling in Mariupol port' and agreement with Donetsk railways 'On organization of the cargo carriage and settling of the calculations for payment for transportation and services rendered by the railways'.

1.6. The cargo owner shall pay for all performed works and rendered services as per Price Lists, Tariffs and Contracts in force.