LETTER OF UNDERTAKING
TO: The owners of and/or the underwriters and/or those entitled to sue in respect of the cargo lately laden on board the vessel [insert name], (hereinafter together referred to as the "Cargo Owners").
Lading/Container nos :
IN CONSIDERATION of your consenting to release from arrest and/or refraining, subject to (4) below, from taking action resulting in the arrest or re-arrest at any time hereafter of the above-mentioned ship and any other ship or assets in the same ownership, associated ownership or management for the purpose of obtaining security in respect of the above mentioned claim of the Cargo Owners, and of the Cargo Owners refraining, subject to (4) below, from commencing and/or prosecuting legal or arbitration proceedings in respect of the above mentioned claim otherwise than before the Tribunal referred to below against the above-named ship and/or [name of shipowner] of [insert address] (hereinafter "the Shipowners"), who we are informed owned the above-named ship at all material times, we hereby undertake to pay to you (or your nominated solicitors at the time of any demand hereunder) on behalf of the Cargo Owners on demand such sums to be adjudged or declared by final unappealable award of a London Arbitration Tribunal (or on appeal therefrom) to be or have been payable by, or as may be agreed to be or have been recoverable from, the above-named ship and/or the Shipowners in respect of the said claim, interest and costs of the Cargo Owners provided that the total liability hereunder shall not exceed the sum of [insert sum] inclusive of interest and costs.
And for the consideration aforesaid:
(1) We hereby warrant we have been informed that the above-named ship was not demise chartered at any material time.
(2) We further undertake that we will within 14 days of the receipt from you of a request so to do, instruct and authorise solicitors forthwith:
(a) to accept on behalf of the above-named ship and/or the Shipowners service of a notice to appoint an Arbitrator issued by the Cargo Owners; and
(b) to notify you in writing that they have been so instructed to accept service at an address in England.
(3) We confirm that the Shipowners agree that the above-mentioned claim shall be subject to English law and to the exclusive jurisdiction of a London Arbitration Tribunal.
(4) Nothing in this undertaking shall prevent the Cargo Owners and/or the Shipowners from exercising their right (if any and if appropriate) to obtain an adjustment to the amount secured hereunder at any time after the date hereof.
(5) We warrant that we have received the irrevocable authority from the Shipowners to instruct solicitors as aforesaid and to give this Letter of Undertaking in these terms.
This undertaking is not to be construed as an admission of liability on the part of the above-named ship and/or Shipowners and is issued entirely without prejudice to any rights, defences, immunities or limitations, which the above-named ship and the Shipowners may have.
For the same consideration as aforesaid, this undertaking shall also be governed by and construed in accordance with English law and any dispute hereunder and/or for the purposes of enforcement hereof shall be referred to the exclusive jurisdiction of the English High Court of Justice. We confirm that our registered or principal office is situated at [insert details].