Salvage

Arbitration
Plan

BOAT OWNERS ASSOCIATION

OF THE UNITED STATES
 Boat Owners Association of The United States
Salvage Arbitration Plan

TABLE OF CONTENTS
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Plan Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Costs and Time Involved . . . . . . . . . . . . . . . . . . . . . . . . . 2
Before Arbitration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Duty of Utmost Good Faith & Full Disclosure . . . . . . . . . 3
Salvage Billing Practices . . . . . . . . . . . . . . . . . . . . . . . . . 3
Percentage Billings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Independent or Subcontractors . . . . . . . . . . . . . . . . . . . . 4
Standard Form Salvage Contracts . . . . . . . . . . . . . . . . . . 5
Payment of Salvor’s Bill . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Arbitration Process and Procedure . . . . . . . . . . . . . . . . . . . . 6
Request to Convene a Panel . . . . . . . . . . . . . . . . . . . . . . 6
Arbitration Fees and Expenses . . . . . . . . . . . . . . . . . . . . 7
Penalties for Non-compliance With Deadlines . . . . . . . . . 8
Administrator Duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Presentation of the Salvage Case . . . . . . . . . . . . . . . . . . 10
Arbitration Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
General Duties of Panel . . . . . . . . . . . . . . . . . . . . . . . . . 13
Arbitration Guiding Principals . . . . . . . . . . . . . . . . . . . . 14
Arbitrators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Listing Critera . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Code of Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Plan Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Miscellaneous Terms of Agreement . . . . . . . . . . . . . . . . . . 16

© 2014 Boat Owners Association of The United States

880 South Pickett Street, Alexandria, VA 22304
Office of Salvage Arbitration 703-461-2856
Fax: 703-461-4674
I. Boat Owners Association of The United
States Salvage Arbitration Plan—Overview

Inherent in every business transaction is the risk of a dispute.

BoatU.S. (“Association”) sponsors this Salvage Arbitration Plan
as a low cost, time efficient, equitable dispute resolution system
for the recreational boating community. It is structured in a
manner that strives to provide the parties with an objective,
unbiased legally supportable outcome.

When a salvage billing dispute arises and negotiations fail,

either party may request an Arbitration Panel be convened.
Upon mutual agreement to use this Plan, the parties are legally
bound by the decision of the Arbitration Panel. Each party pres-
ents its case in writing. No in-person testimony is used. Each
party has the opportunity to submit a written rebuttal to the
case presented by the opposing side. The Arbitration Panel
reviews the cases and decides a fair and reasonable settlement.
The parties are sent a copy of the Award that includes the settle-
ment amount and an explanation of the decision.

Each party to the dispute selects an Arbitrator from the list of

arbitrators maintained by the Association. These arbitrators are
marine professionals with experience in the salvage of recre-
ational boats. Parties to the dispute are free to choose from the
Admiralty Attorney List or the Marine Professionals List when
they select an Arbitrator. The two Arbitrators then must select
the Arbitration Panel Chairman from the Admiralty Attorney
List, assuring the proper application of the law.

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A. Plan Benefits

Participants in this Plan are benefited by:

• an Arbitration Panel comprised of marine professionals
who apply their knowledge and understanding of
recreational boat salvage.
• an Admiralty Attorney as Panel Chairman, assuring the
proper application of the law.
• a speedy resolution of the dispute, the average procedure
is concluded within 84 days
• sharply reduced cost, in comparison to court proceedings,
as well as other arbitration plans
• an Award supported by a fully reasoned written opinion

B. Costs and Time Involved

The arbitration fees are split equally between the two parties.
The maximum cost per party is $2,750.00, plus minimal
expenses for copying, etc. There are no travel or hearing costs
or additional legal expense associated with this Plan. There
are no pre-arbitration set-up costs. Fees are collected at the
end of the procedure.

The following chart outlines the time involved in resolving the

dispute and notes the amount of time allowed for the various
stages of the process. This Plan provides for a quick resolu-
tion, with the average procedure concluded within 84 days.
Day 1...................... Agreement to Arbitrate form submitted
Day 14.................... Deadline for Arbitrator selection
Day 21.................... Deadline for Panel Chairman selection
Day 42.................... Deadline for submitting case presentation
Day 56.................... Deadline for submitting rebuttal
Day 84 .................. Award decided by Panel
Immediately
...............................
upon receipt Award decision distributed to both parties

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II. Before Arbitration
A. Duty to Utmost Good Faith and Full Disclosure
1. All parties shall deal fairly, honestly and with utmost good
faith in the handling of salvage operations, salvage contracts,
and negotiations, seeking a just and reasonable payment for
salvage services.

2. Whenever information, such as the conditions under which

the salvage operation was performed, the value of the Yacht,
insurance coverage or the basis of the salvage billing, must be
disclosed, it shall be completely and fully disclosed.

B. Salvage Billing Practices

1. Upon completion of the job and delivery to a safe port,
Salvor shall present to the Underwriter’s Agent and/or the
salved vessel’s Owner a billing for services rendered. The bill
must include specific information on how the price was deter-
mined, whether it be on the basis of a flat contract price, or
time and equipment in accordance with published rates, or
based on a percentage of after-salvage, pre-repair fair market
value of the vessel or property saved, whichever was agreed to
at the time the salvage took place. Salvor should include with
the billing any background information regarding the salvage
operation that supports the amount of the bill presented.

2. If requested by the Salvor or, in the event of any disagree-

ment over the reasonableness of the Salvor’s billing, the
Underwriter (or, an uninsured Owner, if applicable) shall dis-
close, without prejudice, the pre-casualty market value and
insured value of the salved vessel and its equipment as well as
the believed post-casualty, pre-repair fair market value “as is”
(in other words, after salvage but before repairs). Any sup-
porting information or opinions obtained from a marine sur-
vey of the yacht or repair facility estimates or invoices shall
also be disclosed as soon as practicable. Any U.S. Coast Guard
or Marine Patrol accident reports shall also be provided to
Salvor if requested.

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C. Percentage Billings
1. In the event the Salvor pursues a claim based on a percent-
age of the salved vessel’s post-casualty value, the billing shall
include an explanation of the basis of the claimed percentage,
the post-casualty, pre-repair value, and the way in which the
yacht’s value was determined.

2. For the purposes of calculating percentage billing of the

post-casualty value, the amount shall be based upon the post-
casualty, pre-repair value of the salved vessel. Pre-repair valu-
ation may be calculated by subtracting the reasonable cost of
restoring the salved vessel to its pre-casualty condition,
according to accepted marine repair practices, from the pre-
casualty fair market value. It should exclude the costs of sal-
vage and towing to a suitable repair yard, but take into
account any damages caused or contributed to by the Salvor
during the salvage operation.

3. The joint survey for the purpose of arrived at the post-casu-

alty, pre-repair value of the salved vessel, while not required,
is encouraged wherever a dispute arises as to valuation.

D. Independent or Subcontractors
1. The Salvor shall disclose any independent or subcontractors
that were involved in the salvage operation and whose servic-
es are included as part of the bill presented.

2. Any compensation owed to any independent or subcontrac-

tor retained by the Salvor shall be the sole responsibility of
the Salvor, with no obligation of the Owner or Underwriter to
pay this subcontractor directly. Salvor holds harmless and
agrees to indemnify the Owner and Underwriter from any
claim by such subcontractor for payment.

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E. Standard Form Salvage Contracts
1. This Arbitration Plan is available for any salvage dispute as
mutually agreed between the parties, regardless of what con-
tract form is used by the Salvor. The BoatU.S. Standard Form
Yacht Salvage Contract is available, but not required, for use
in any marine salvage operation.

2. The Salvor shall present his contract or agreement to the

Owner or Master of the salved vessel and obtain an agreement
to proceed with the salvage prior to commencing any recovery
effort, wherever possible. In the event of clear danger to life
or property (e.g., perilous at-sea conditions or immediate and
substantial risk to life and property), Salvor may engage in
stabilizing efforts prior to presenting the agreement. Once the
situation is stabilized, the agreement should be produced and
finalized before any further salvage or towing operations are
undertaken.

F. Payment of Salvor’s Bill

1. After good faith reviewing of the billing and absent an
extension of time granted by the Salvor, the salved vessel’s
Underwriter (or Owner, if uninsured) shall promptly pay the
Salvor the agreed-upon amount no later than fifteen (15) days
from the date the yacht is delivered afloat or ashore and the
bill is delivered to the Owner or Underwriter as mutually
agreed. In the event of disagreement over the bill and an
inability to resolve any disagreement, Arbitration should be
promptly requested.

2. The Underwriter shall deliver to the Salvor a copy of the

declarations page of the subject insurance policy and a Letter
of Undertaking agreeing to pay, without prejudice, an amount
up to one and one-half (1.5) times the presented bill, subject
to policy limits, with full disclosure of any reservations or
rights for policy coverage defenses that might affect
Underwriter’s payment of the bill.

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3. In the absence of any reservations of rights for policy cov-
erage defenses, the Salvor shall accept the Underwriter’s
Letter of Undertaking as security for any maritime lien and in
lieu of any arrest or attachment of the Yacht. The Letter of
Undertaking shall serve as bond for payment of any salvage
claim award, including but not limited to interest and costs.

4. In the event that the Yacht is not insured or Underwriter’s

Letter of Undertaking contains a policy reservation of rights
not withdrawn on or before the thirtieth (30th) day following
the delivery of the Yacht, Salvor may resort to all legal reme-
dies to assure collection of fees from the Yacht and/or its
Owner or may agree with the Owner to accept Owner’s surety
bond and/or convene Arbitration under this Plan.

III. Arbitration Process and Procedure

A. Request to Convene a Panel
1. In the event the parties to any billing dispute can not reach
an agreement on the reasonable fees for services rendered,
and when the parties have agreed by stipulation or otherwise
to arbitrate under the BoatU.S. Salvage Arbitration Plan, the
parties may request that Arbitration be convened. A request to
convene Arbitration may be made at any time but should gen-
erally be requested only after good faith negotiations between
the parties have been exhausted.

2. Notice of the request for Arbitration shall be sent electroni-

cally with a written confirmation to all interested parties and
to the BoatU.S. Office of Salvage Arbitration, 880 S. Pickett
St., Alexandria, VA 22304. Upon receipt of the request for
Arbitration, the Administrator will send “Agreement to
Arbitrate” forms to both parties. Submission of the signed
form constitutes an agreement that this Arbitration is final and
binding on all parties and in lieu of any legal or other pro-
ceedings. If either party fails to submit a signed “Agreement to
Arbitrate” form within fourteen (14) days, the Administrator
will advise both parties to pursue appropriate legal remedies.
The parties agree that the Award issued as a result of their
case may be published by BoatU.S. and/or its correspondents.

6
3. All parties to Arbitration must select an Arbitrator from the
Association’s current “Approved Arbitrators” lists (or agree to a
Sole Arbitrator selected from the Admiralty Attorney List) with-
in fourteen (14) days after the Administrator receives a request
to convene a Panel. If either or both parties fail to timely select
an Arbitrator and signed “Agreement to Arbitrate” forms have
been submitted by both parties, the Administrator shall select
one at random, from the current lists of Arbitrators, for such
party and shall so advise both parties in writing. In such an
event, the Arbitration Panel shall consist of three (3) members
and not a Sole Arbitrator.

B. Arbitration Fees and Expenses

All fees and expenses of the Arbitration Panel and the
Arbitration Plan administrative fee shall be paid equally by the
parties to Arbitration. The maximum any party to this
Arbitration process would pay is $2,750.00, plus expenses.
The fee schedule is as follows:
1. Each Arbitrator shall be paid an hourly fee of $175 for a
maximum of seven (7) hours time, plus expenses.
2. The Arbitration Panel Chairman shall be paid an hourly fee of
$225 for a maximum of twelve (12) hours time, plus expenses.
3. An Administrative Fee of $350 will be charged for each case.
4. The Arbitrators’ direct expenses shall be limited to photo-
copying at 25 cents per page, mailing charges, telephone or
fax charges. Travel is not necessary to render a decision, there-
fore no travel charges should be billed and will not be paid.
Other expenses are subject to review by the Administrator.
Payment of the Arbitrators’ expenses will be made by the
Administrator and is not the responsibility of the parties to
Arbitration.

5. In the event the parties agree to a Sole Arbitrator to resolve

the dispute, the Sole Arbitrator will be selected from the Plan’s
current Admiralty Attorney List. The Sole Arbitrator shall be
entitled to the same rate and expenses as that of a Panel
Chairman, with a maximum of fifteen (15) hours time. The
Administrative Fee shall remain $350.

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C. Penalties for Non-Compliance with Submission
Deadlines

1. A penalty of $100 per business day will be assessed if either

party submits its presentation brief and/or rebuttal after the
stated deadline. The penalty will be deducted from the oppos-
ing party’s arbitration fees.

2. If a submission is over five (5) business days late, the

Arbitration Panel will be directed to proceed in its delibera-
tions without that submission.

3. Deadlines for submitting presentation briefs and rebuttals

may be extended provided both parties agree in advance to the
extension. Failure to meet an extended deadline will result in an
immediate penalty of $500, to be deducted from the opposing
party’s arbitration fees. The Arbitration Panel will be instructed
to proceed with its deliberation without the submission.

D. Administrator Duties
1. The Administrator shall be a BoatU.S. employee designated
by the BoatU.S. Consumer Affairs Office and shall have no
involvement or interest in the salvage claim. The Administrator
is responsible for clerical functions only and has no input into
the decision making process of any Arbitration proceeding.

Note that in order to insure a fair process, BoatU.S. Towing does not
share internal information or documents with BoatUS/GIMC Claims
during active salvage arbitration cases. Such information includes
License/Service Agreements, boat inspection documents, or any other
information that a non-BoatUS/GMIC insurance company would likewise
not be able to obtain during an arbitration procedure.

2. The Administrator shall maintain current lists of all “Approved

Arbitrators,” a file of all Plan Awards and any correspondence or
documents received in the course of Arbitration business, to be
retained for a period of not less than three years.

3. The current lists of “Approved Arbitrators” and copies of the BoatU.S.

Salvage Arbitration Plan will be provided to anyone on request.

8
4. Upon receipt of a request to convene an Arbitration Panel,
the Administrator shall promptly notify the parties of the
request, send “Agreement to Arbitrate” forms to both parties
and request that the parties submit their Arbitrator selections
from the “Approved Arbitrator” lists provided. If either or both
parties do not submit signed “Agreement to Arbitrate” forms
within fourteen (14) days, the Administrator shall advise both
parties to pursue appropriate legal remedies. If either or both
parties submit signed “Agreement to Arbitrate” forms but fail to
provide Arbitrator selections in a timely manner, the
Administrator shall select Arbitrator(s) at random from the cur-
rent lists and shall so advise both parties in writing.

5. After selection is complete, the Administrator shall notify

each Arbitrator in writing of their selection and instruct them
to choose an Arbitration Panel Chairman from the Plan’s cur-
rent Admiralty Attorneys List. The Administrator shall promptly
notify the Chairman of his/her selection and distribute to each
member of the Arbitration Panel a copy of the Plan, arbitration
deliberation guidelines and any other documents useful to their
work.

6. Prior to commencement of Arbitration proceedings, the

Administrator will obtain written confirmation from each
Arbitrator that he/she has no conflict that would prevent him/
her from fully and fairly evaluating the case. This statement
will also require the Arbitrator to agree to remain impartial,
fair and honest throughout the Arbitration and to adhere to the
timeframe stipulated by the Plan.

7. The Administrator will notify the parties of the Arbitration

Panel selection and monitor the Panel’s business to that ensure
a timely decision is rendered.

8. The Administrator shall receive and distribute as appropriate

all correspondence and documents during the course of the
Arbitration proceedings.

9. There shall be no direct communication between the parties

and the Arbitration Panel during the Arbitration proceedings.
Any communication between the parties and the Arbitration
Panel shall be directed through the Administrator.

9
10. The parties to the Arbitration may communicate with each
other throughout the Arbitration process. If the parties reach a
settlement on their own while Arbitration is in progress, the
parties will pay the full Administrative Fee, as well as the
Arbitration Panel members for their services at the stated hour-
ly rate, up to the maximum allowed.

11. The Administrator shall provide all parties with a copy of

the Award decision and a statement of Arbitration fees and
expenses.

12. The Administrator shall oversee timely payment of the

Award and any billings and shall be empowered with Power of
Attorney and confession of Judgment in any court of competent
jurisdiction to seek collection of the Award or billings due here-
under. The failure of either party to promptly pay an Award or
assessment shall result in that party’s forfeiture of any benefits
or protection of this Plan. The Administrator is empowered to
instruct the Underwriter (or Owner, if vessel is uninsured) to
offset any administrative assessment against Salvor in the
Award payment and have such assessed fee included in the
Underwriter’s assessed payment.

E. Presentation of the Case

1. Within forty-two (42) days after submitting a signed
Agreement to Arbitrate form, each party to Arbitration shall
prepare a presentation of its position in regard to the reason-
able amount believed due and owing for the salvage services
performed. The parties are encouraged to agree to send sub-
missions electronically to the Administrator who will in turn
forward all electronic submissions to the Panel and the parties
as appropriate. Should the parties not agree at the time arbitra-
tion is requested to electronic submissions, then five (5) writ-
ten copies of the presentation must be delivered to the
Administrator within the time period stated.

10
Upon receipt of the case presentation from both parties, the
Administrator will promptly distribute copies to the Arbitration
Panel and the other party to Arbitration. Three (3) identical
written copies will be provided in cases where there is a Sole
Arbitrator and the parties do not agree to provide submissions
electronically.

2. Rebuttal information must be delivered to the Administrator

within fourteen (14) days of receipt of the opposing party’s
case presentation. Rebuttals are not required and any party
that chooses not to submit a rebuttal must provide the
Administrator with written notice to this effect.

3. The Case Presentation shall include, where appropriate, the

following:
a. A summary of the salvage operation including, but not
limited to, the following:
(1) location of the casualty and prevailing weather and
sea conditions throughout the recovery operation;
(2) degree of risk to persons and equipment;
(3) the extent of damage to the salved vessel believed
caused in the incident or believed caused by the
salvage operation;
(4) degree to which the salvage operation mitigated or
saved further, reasonably-anticipated damage to
the salved vessel;
(5) time required, expenses and degree of success of
the salvor in mitigating or preventing damage to
the marine environment;
(6) prevailing prices for comparable salvage recovery
operations and awards, and hourly salvage rates
in the region where the salvage operation took
place;
(7) photographs, video tapes and witness statements
believed helpful to render a decision on the rea-
sonable compensation for salvage services per-
formed;

11
 b. A copy of any signed Salvage Agreement or Contract,
together with a copy of all documents or a summary
of oral contractual arrangements between the salved
vessel’s Owner or Master and any Salvor and/or Salvor
subcontractor(s) involved in the recovery operation;

c. An itemized listing of the Salvor’s vessels and their

value, personnel and equipment utilized in the recov-
ery operation, together with an itemization of time
expended and any out of pocket costs incurred for
such crew and equipment;

d. The salved vessel’s pre-casualty fair market and insured

value, post-casualty pre-repair market value, any
marine condition/valuation or damage surveys and all
repair estimates and invoices;

e. Party’s summary conclusions and the believed reason-

able fee due and owing for services rendered.
Disclosure of settlement discussion information
is deemed improper and is not to be submitted.

4. All case presentations shall be accomplished through the

mail or electronically. No in-person presentation of the case
nor any out of town travel by the Arbitration Panel members
shall be necessary. The Arbitration Panel Chairman is encour-
aged to convene a conference call meeting of the Panel before
rendering a final decision.

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IV. Arbitration Decision
A. General Duties of Panel
1. The Arbitration Panel shall promptly review all presented
materials to adhere to the Arbitration timeframe outlined in
this booklet (see page 2). The Chairman may request addition-
al information for clarification from either or both parties. Any
such request, as well as the response, must be in writing and
communicated through the Administrator. The Administrator
will distribute copies of the request and response to all Panel
members and to both parties.

2. The Chairman or his/her designee shall issue a written

Decision and Award within twenty-eight (28) days after receiv-
ing rebuttal information from either or both parties and/or any
supplemental information requested, whichever is provided
later. The Arbitration Panel shall weigh all appropriate infor-
mation provided in a full and fair light and may reject any
untimely presentation.

3. Generally, a salvage operation is performed on a “No Cure,

No Pay” basis. However, the Award should consider special
compensation for the costs of removal of the wreck and pollu-
tion prevention, containment or clean up in the event the
salved property is later deemed a constructive total loss
(“CTL”). Per this Plan’s definition a vessel is deemed a CTL
when its reasonable repair costs exceed whichever is less, the
insured value or the fair market value of a substantially similar
boat. Recovery (salvage and/or towing) expense shall not be
considered in a CTL calculation. Any special compensation
shall be payable only if no salvage award is made.

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B. Arbitration Guiding Principles
The Arbitration Panel shall consider as Guiding Principles the
following criteria for the decision of a reasonable Award:

1. the salved vessel’s post-casualty valuation;

2. weather, seas and other marine conditions immediately

prior to, during and following the salvage recovery opera-
tion that relate to danger to the property;

3. degree of risk to persons or property during the recovery

effort;

4. skill, experience, promptness and expertise of salvor;

5. time, equipment and expenses expended by salvor in ren-

dering the salvage service, as well as losses, if any,
incurred by salvor;

6. time, equipment and expenses expended by the salvor to

mitigate or prevent environmental damage;

7. measure of success, extent of damage mitigated as a result

of or caused by the salvage effort;

8. value, readiness and efficiency of salvor’s vessels and

equipment;

9. prevailing prices and awards for comparable salvage recov-

ery operations and hourly or per foot salvage rates in the
region where the salvage took place.

The Panel shall consider the criteria set forth in Article 13

of the 1989 International Convention on Salvage and which
are set forth at Paragraph E(3)(a)(1-7) located at pages 10
and 11.

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V. Arbitrators
A. Listing Criteria
1. Criteria for approved listing shall include a minimum of five
(5) years experience in a salvage related profession. This
includes, but is not limited to, operator/crew of salvage opera-
tion, damage appraisal, claims adjusting or Admiralty Law
practice. The Arbitrators must be of the highest moral, ethical,
personal and business reputation.
2. Listing as one of the Plan’s “Approved Arbitrators” shall be
by application to the BoatU.S. Consumer Affairs Office.

3. The Chairman or the COO of BoatU.S. shall appoint three

individuals to serve on the Arbitrators List Steering Committee
for a term of three years. The Committee will be comprised of
an arbitration-seasoned salvage company owner and two mem-
bers from the BoatU.S. executive team. The Plan Administrator
will serve as secretary. This Committee may meet via email and
via conference telephone call. The Committee will review rec-
ommendations and applications for new arbitrators, and com-
plaints or suggestions for removal of existing arbitrators. A
majority of the Committee is required to add or remove arbi-
trators from the Plan’s lists of “Approved Arbitrators.”

B. Code of Ethics
1. No individual may serve as an Arbitration Panel member for
a case in which that individual has in any manner participated
in the salvage recovery operations or its investigation, or who
has any fiduciary or financial interest in the Award. It is the
responsibility of each Arbitrator or any participant in that
Arbitration case to immediately advise the Administrator of any
conflict so that a substitute Arbitrator can be selected. A failure
by a party to an Arbitration case to advise of a conflict of inter-
est within ten (10) days of convening the Arbitration Panel shall
waive such objection by that party. A failure of the Arbitrator to
personally excuse himself/herself from a particular case due to
such conflict (independent of any request by a party) shall
result in permanent dismissal of such Arbitrator from the list of
“Approved Arbitrators” and a rejection of any claim for fees or
expenses submitted by that Arbitrator.
15
2. No Arbitrator shall discuss with the party appointing him/
her the selection of the Arbitration Panel Chairman. Once the
Panel is complete, all communications between the parties and
the Arbitration Panel members shall be through the
Administrator. All verbal communications must be confirmed
in writing.

3. Arbitrators must remain impartial and abide by the princi-

ples of honesty and fair dealing.

4. Arbitrators must sign an “Arbitrator’s Agreement” for each

case on which they serve, affirming their lack of conflict of
interest.

5. The Arbitrators List Steering Committee appointed by

BoatU.S. shall govern all disciplinary matters involving the
“Approved Arbitrators” listing.

VI. Plan Management

The Plan shall be managed and directed by the Chairman or
the CEO of BoatU.S. through its Consumer Affairs Office.

VII. Miscellaneous Terms and Agreement

This Salvage Arbitration Plan is sponsored by BoatU.S. for use
by mutual agreement of any parties to a recreational boat sal-
vage dispute. All participants shall follow the pre-arbitration
and arbitration procedures outlined in this booklet. Use of this
plan is voluntary. As such, participants agree to hold harmless
and indemnify BoatU.S. for any loss or damage arising out of
this arbitration process from whatever cause, including negli-
gence by BoatU.S. employees.

16
Boat Owners Association of The United States
Office of Salvage Arbitration
Washington National Headquarters
880 South Pickett Street, Alexandria, VA 22304
703-461-2856 Fax: 703-461-4674 www.BoatUS.com

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