The recommendations in case shortages are verified upon

completion of loading are as follows :

a). Masters to clause the Mates Receipts and/or Bills of Lading no

matter whether a further action - Writ of Prevention - will be taken
by shippers. In case of an eventual future claim, it can be argued
that the documents were properly claused but had to be further
re-issued and released clean under duress.

b). Following a local standard procedure, upon a vessels arrival,

Masters supply agents with a Letter of Authorisation enabling
them to sign the Bills of Lading on their (Masters) behalf.
Eventually, such Letter of Authorisation could be supplied on
completion of loading containing a specific demand for the
inclusion of a described clause. In such way, although shippers
could still obtain clean Bills of Lading by means of a court action,
they could still face difficulties as one of the demanded
documents, to be enclosed with the Bills of Lading, to be
presented to the banks, is the Masters Letter of Authorisation to
sign Bills of Lading.

c). It is a usual procedure that during the course of the loading

operation and prior to completion, the agents or stevedores
periodically present to Master the Mates Receipts covering the
parcels of cargo already loaded on board to be signed. Masters
should only sign all Mates Receipts on completion of loading as in
such way, a remark covering the percentage of the short loaded
quantity ascertained can be inserted in all Mates Receipts and
not only in the last ones presented on completion of loading not
representing the totality of the manifested quantity.

d). Although meaning additional costs, request Customs to carry

out a draft survey or alternatively a Displacement Survey on
completion of loading when Master concludes that there is indeed
a shortage. The surveys by Customs are important because they
are considered official and are to be used as evidence in Court.
e). The vessels hatchcovers and entrances to the holds to be
sealed prior of departure and shippers, stevedores, agents and
charterers to be formally invited to accompany the sealing.

f). In case on completion of loading the Mates Receipts covering

the majority of the cargo loaded are already signed and the
Masters Letter of Authorisation for agents to sign the Bs/L on his
behalf is already in possession of agents, Master to tender a
Letter of Amendment to the Letter of Authorisation for agents to
sign Bs/L, requesting that the described remark is inserted in the
Bs/L to be issued on his behalf.

g). To contest the Writ of Prevention and the Main Lawsuit to be

filed by shippers and in that respect the following precautions
should be adopted at the discharge port:

- To arrange for a draft survey, to be as official as possible;

- To arrange for the unsealing of the hatches and entrances, to be

as official as

possible and to invite receivers to accompany it;

- To obtain the official shore records covering the discharged

quantity.

In case the shortage is confirmed, these evidences are to be

made locally available in order to be presented to local Court in
the legal proceedings commenced by shippers

The observation "as official as possible" means by any

governmental entity or party officially recognised or certified by a
governmental entity. The main purpose of this, is the significant
bureaucracy within the Brazilian system. Therefore, official
documents are more easily recognisable and acceptable by local
authorities, including the local Courts.