RULE 29  DISPUTES

A. The Member hereby submits to the jurisdiction of China Maritime Courts in respect of any action brought by the Association to recover sums which the Association may consider to be due to it from the Member. Without prejudice to the foregoing the Association shall be entitled to commence and maintain in any jurisdiction any action to recover sums which the Association may consider to be due to it from the Member.

B. Save as provided in paragraph [D] of Section 4 of Rule 16, if any other difference or dispute shall arise between a Member and the Association out of or in connection with these Rules or any contract between them, such difference or dispute shall in the first instance be referred to and adjudicated upon by the Directors, unless the Directors elect to waive such adjudication, whereupon the Member concerned shall be entitled to refer the difference or dispute to arbitration in accordance with the provisions of paragraph [C] of this Rule. Such reference and adjudication shall be on written submissions only.

C. If the Member concerned in such difference or dispute does not accept the decision of the Directors it shall be referred to China Maritime Arbitration Commission, Beijing of two Arbitrators (one to be appointed by the Association and the other by such Member) and a presiding arbitrator to be jointly appointed by the Association and such Member or appointed by the Chairman of the Arbitration Commission upon the joint authorization of the Association and such Member. The submission to arbitration and all the proceedings therein shall be subject to the provisions of China Maritime Arbitration Commission Arbitration Rules (2004) and its any statutory modification thereof. The single ruling system shall be applied in arbitration. The arbitration award shall be final and binding on the Association and the Member.