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[CUSTOMER LETTERHEAD]

LETTER OF UNDERTAKING
(Date)
To:

Hyundai Merchant Marine Co., Ltd.

Cargo:

*********** (HS Code: *********** )

Consignee:
Notify Party:
End User:

***********
***********
***********

Dear Sirs:
1. We, (Name of the Shipper), hereby warrant and guarantee that the cargoes which have been booked
and/or will be booked with HMM by us (Cargoes) or for which the vessel may be chartered to carry
do not contain any goods prohibited by any sanction, prohibition or adverse action in any form
whatsoever by any State or International Organization including, but not limited to, Korea, the United
States, the United Nations, the European Union etc., which shall expose or may expose HMM or the
vessel to carry the Cargoes (Vessel) or its Owner, Charterer, Operator, Manager, Underwriters,
Mortgagees etc. (collectively, Carrier Interests) to the risk of any sanctioned activities.
2. We further warrant and guarantee that the description of the above cargoes is true and accurate and
will not put you in breach of any such sanctions legislation.
3. We further warrant and guarantee that the provision of services to a vessel carrying the Cargoes
(including but not limited to insurance, reinsurance, the provision of credit, payment and or trading)
will not cause any provider of such services to breach any applicable sanctions.
4. We further warrant and guarantee that we and other cargo interests including, but not limited to,
Consignee(s), Notify Party, and other parties related to the Bills of Lading (Cargo Interests) will not
ship any goods or cargoes or engage in any other activities of whatsoever nature that would expose
you, directly or indirectly, to the risk of being or becoming subject to any sanction, prohibition or
adverse action in any form whatsoever by any State or International Organization.
5. In addition, we hereby warrant and guarantee not to engage in any activities with, and/or to support
any entity which has been designated as a sanctions target under laws or regulations such as under
the list of the Specially Designated Nationals and Blocked Persons of the United States, which shall
expose or may expose Carrier Interests to the risk of any activities prohibited by any sanction,
prohibition or adverse action in any form whatsoever by any State or International Organization
including, but not limited to, Korea, the United States, the United Nations, etc.
6. In order to comply with our obligations set out in paragraphs 1-5 we confirm that we have drafted and
implemented a sanctions compliance programme of which proper records are kept and which will be
made available immediately upon your request.
7. In case of any failure or breach of Paragraphs 1 - 5 on the part of us and other cargo interests, we
confirm and agree that Carrier Interests, at any time, have the liberty to refuse to enter into or to
terminate the relevant contract of carriage and to unload, discharge, abandon, or give up the Cargoes
at a port or place selected by Carrier Interests at the risk and expense of Cargo Interests.
8. After the exercise of Carrier Interests liberty as set forth in Paragraph 7 above, Carrier Interests shall
be free from any responsibility for further custody or carriage of the Cargoes and shall not be held
liable for any claims, risks, costs and/or expenses with regard to the Cargoes.
9. Notwithstanding and without prejudice to Paragraphs 7 and 8 above, we hereby acknowledge that the
Carrier Interests fully reserve all rights and remedies with regard to the shipment of Cargoes
including, but not limited to, the right to claim for any damages which they may suffer from or in
connection with the Cargoes.

10. Furthermore, we hereby undertake to refrain from arresting or taking any action against the Vessel or
any other ship in the same ownership, associated ownership, management, control or possession or
initiate legal proceedings against Carrier Interests in relation to the Cargoes or such exercise of
liberty.
11. In addition, we shall defend and hold harmless Carrier Interests and indemnify them for any and all
damages including, but not limited to, loss of earnings, court costs and legal fees if any of Cargo
Interests should arrest or take any action against the Vessel or any other ship in the same ownership,
associated ownership, management, control or possession or initiate legal proceedings against
Carrier Interests in relation to the Cargoes or such exercise of liberty.
12. We further acknowledge that the provision of services by a vessel carrying the Cargoes may be
ceased at any time without a prior notice due to unforeseen changes of any sanction, prohibition or
adverse action in any form whatsoever by any State or International Organization and Cargo Interests
shall be responsible for further transportation or disposal of the Cargoes at their risk and expense.
13. This Letter of Undertaking shall be governed by and construed in accordance with the laws of the
Republic of Korea and any disputes arising hereunder shall be referred to Seoul Central District Court
which will have exclusive jurisdiction in respect thereof.
14. This Letter of Undertaking is wholly without prejudice to any rights or defenses which Carrier Interests
may have.
Yours faithfully,

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