Circular issued by International Group clubs Final Rule - 31 December 2008 Deadline for implementation - 22 February 2011 - further update Salvage agreements This Circular applies to owners of tank vessels carrying oil calling at US ports We refer to Circular issued 23 August 2010 concerning the above, which provided a list of salvor contracts/funding agreements which had been reviewed by the International Group and to an update provided in Circular issued 22 October 2010. Since this date T&T Bisso have introduced an Addendum to their contract. The T&T Bisso Addendum with footer  T&T Bisso SMFF Agreement Addendum February 2011  enables the owner to exercise an option to switch to Lloyd's Open Form (LOF) some time after the commencement of operations. Whilst it has been held to conform with the International Group salvage guidelines, Members' attention is drawn to clause 5 of this Addendum. This clause deals with owner’s authority to bind cargo to the LOF and requires owners to indemnify T&T Bisso for any losses, damages or costs as a result of any breach of such warranty of authority following any claim by any of the salved property that they are not bound by the LOF. Whilst it is acknowledged that Article 6 of the Salvage Convention gives the master/owner of the vessel the authority to conclude a salvage contract on behalf of the owner of property on board the vessel, it is unlikely that this authority extends to an amendment of a pre-existing salvage contract which would be the case if the owner were opt to switch from the standard T&T OPA 90 Agreement to LOF and thus specific agreement would in all probability be needed from cargo interests to this change. If exercising this option Members are consequently advised to consider the potential need to obtain cargo interests’ authority before doing so and that a failure to recover from cargo interests because the owner did not obtain cargo interests’ permission to switch co