T R A N S L A T I O N REPUBLIC OF PANAMA MINISTRY OF AGRICULTURE DEVELOPMENT. EXECUTIVE DECREE No. 160 (June 6, 2013)

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1 T R A N S L A T I O N REPUBLIC OF PANAMA MINISTRY OF AGRICULTURE DEVELOPMENT EXECUTIVE DECREE No. 160 (June 6, 2013) Which establishes the proceedings to impose administrative sanctions for infractions to the regulations of aquatic resources, aquaculture, marine-coastal and fishing at Law 44 of November 44, THE PRESIDENT OF THE REPUBLIC In use of his legal and constitutional faculties WHEREAS: That article 11, subparagraph c, Executive Decree No. 17 of July 9, 1959, establishes that the Executive Body is authorized to regulates the fishing in all national territory by means of Executives Decree, and in particular: Take all the necessary measures for rational implementation of the current legal provisions, as per the technical surveys. That article 28 of Executive Decree No. 17 of 1959, stipulates that the prohibitions on fishing will be general and special. That article 32 of Executive Decree No. 17 of 1959, states that it is understood for special prohibitions of fishing those established in this Executive Decree or by statutory Decrees and which refer to close season, close zones, minimums size for different species o for mesh of the net, restrictions about the intensity of fishing, amount of vessels, permitted fishing gears or limitations about captures. That article 64, paragraph 1 of Law 38 of June 4, 1996, whereby the United Nations Convention of the Law of the Sea is approved in Montego Bay on December 10, 1982, stipulates that the coastal State and the other States whose nationals fish in the region the highly migratory species, listed in Annex I, shall cooperate directly or through appropriate international organizations with a view to ensuring conservation and promoting the objective of optimum utilization of such species in all the region, both within and beyond the exclusive economic zone. In the regions that do not exists an appropriate international organization, the coastal State and other states whose nationals capture those species in the region, shall cooperate in order to establish an organization of this type and participate in their works. That article 92, paragraph 1 of Law 38 of 1996, states that the vessels shall sail under the flag of one State and, except in predicted exceptional cases expressly mentioned in the international treaties or in this Convention, shall be submitted to the exclusive jurisdiction of said State on high sea. A vessel may not change its flag during a voyage nor in a scale, but in case of effective transference of the property or change of registry. That article 94, paragraph 1 of Law 38 of 1996 states that every State shall effectively exercise its jurisdiction and control in administrative, technical and social matters over vessels flying its flags.

2 That article 2 of Law 64 of October 29 of 2008, whereby the Agreement for the Implementation of the Provisions of the United Nations Convention on the Law of the Sea of December 10, 1982 related to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks adopted in New York, USA on December 4, 1995 is approved, establishes that the objective of this Agreement is to ensure the long-term conservation and sustainable use of straddling fish stocks and highly migratory fish stocks through effective implementation of the relevant provisions of the Convention. That article 5, subparagraph g, j and l of Law 64 of 2008, states that in order to conserve and manage straddling fish stocks and highly migratory fish stocks, coastal States and States fishing on the high seas shall, in giving effect to their duty to cooperate in accordance with the Convention: protect biodiversity in the marine environment; collect and share, in a timely manner, complete and accurate data concerning fishing activities in particular on vessel position, capture of species due to fish, accidentally captures of species and fishing effort, as set out in Annex I, as well as information from national and international research programs; Implement and enforce conservation and management measures through effective monitoring, control and surveillance. That article 19, paragraph 2, subparagraph i of Law 64 of 2008, establishes that the crossing by a foreign vessel shall be considered endangering the peace, good order or security of the Coastal State if the vessel carries out any fishing activity in the territorial waters. That the Aquatic Resources Authority of Panama, created by means of Law No. 44 of November 23, 2006 is the governing entity of the State responsible to secure the fulfillment and implementation of the laws and regulations on aquatic resources and the national policies on fishing and aquiculture adopted by the Executive Branch of the State; That the Aquatic Resources Authority of Panama, within the scope of its duties will be represented before the Executive Branch by the Ministry of Agricultural Development; Following the Principles of Fishing Management, it is the duty of the State adopts necessary measures for the long-term conservation and sustainable use of fisheries resources, as a precautionary measure, in order to control the availability of theses resources for the present and future generations. That the Aquatic Resources Authority of Panama, in accordance with paragraph 2 and 3 of article 4 of the aforementioned legal code, has as function to regulate, promote and implement the measures and technical and administrative proceedings for the rational, suitable and responsible use of the aquatic resources, in order to protect the national aquatic heritage and contribute to protect the environment, as to comply and enforce the agreements and international conventions to which the Panamanian State is signatory concerning of its expertise. That article 52 and 56 of the Law under consideration, states that the proceedings to impose the sanctions must be ruled, as required by law and without prejudice. RESOLVED: ARTICLE 1. To establish the proceedings of imposing sanctions to the administrative infractions for the actions or infringement omissions to the regulations on aquatic resources, aquaculture, marine-coastal and fishing at Law 44 of 2006, Laws and decrees that regulates the subject, as well as the Conventions and International Agreements ratified by the Republic of Panama. Paragraph: The aforementioned regulation includes the resolutions, prohibitions, orders, instructions and authorizations enacted by the Aquatic Resources Authority of Panama with the purpose of implementing and performing the current regulation about the subject.

3 ARTICLE 2. The Aquatic Resources Authority of Panama shall sanction the vessels or its owners, shipowners and masters, as well as the members of the crew or any other person related to fishing activity, for the infractions to the regulations of aquatic resources, aquaculture, marinecoastal and fishing incurred by the Panamanian flag vessels in jurisdictional waters of the Republic of Panama, high sea or in jurisdictional waters of other country. The sanctions above mentioned shall be implemented to Panamanian flag vessels wherever they may be and to the vessels of any nationality sailing in jurisdictional waters of Panama. ARTICLE 3. The proceedings of imposing sanctions shall initiate ex officio by the Aquatic Resources Authority of Panama, as a consequence of an action filed by a natural or legal person, State, any Regional or Sub regional Fisheries Management Organization (OROP, as per its initial in Spanish). The report should have as a minimum the identification of the offenders, conducts or constituent facts of the infraction, as well as the place, date or period of time of the events. ARTICLE 4. The administrative penalty proceedings shall be made under the Law 38 of July 31 of ARTICLE 5. Once the administrative penalty proceedings initiates, the Aquatic Resources Authority of Panama shall issue a request to the Panama Maritime Authority, to suspend all process related to change of owner or cancellation of flag until inquiries ended. In case the vessel wish to cancel the registry or change of owner, it should file a performance bond in the amount of one million dollars ($1,000,000.00) before the Aquatic Resources Authority of Panama. ARTICLE 6. The presumed responsible shall be notified as established by the current national law. ARTICLE 7. In case that the presumed people in charge request evidences which involve costs to the Aquatic Resources Authority of Panama, it should be undertaken by the one who requested them. ARTICLE 8. For all legal purpose of article 53, paragraph 6, Law 44 of November 23, 2006, it is constituted an obstructing for the performance of given orders or measures taken by authorized or appointed officers in accordance with the said law, the following: a) If the fishing vessel does not have a satellite communication equipment installed on board or not send signal of satellite communication (co-ordinates, speed and course) to the Monitoring and Control Centre of the Aquatic Resources Authority of Panama by a term no more than five (5) consecutives days; b) If the vessel does not have fisheries logbook on board; c) If the vessel does not have license of capture or fishing support on board. d) Obstructing the works of the persons in charge of the inspection in the exercise of its duties to control the fulfillment of the applicable conservation and management measures or the work of the watchman in the exercise of its duties to manage the fulfillment of the current legal provisions. e) Taking on board, transshipping or unloading fish smaller than the established statutory size, infringing the current legislation; f) Capturing or intentionally keeping species in breach of any applicable conservation measure and measure management adopted by the Regional Fisheries Management Organizations;

4 g) Performing transshipment in non-authorized ports or in high sea without having a watchman on board; h) Carrying out fishing activities in regional fisheries management organization zones that are incompatible with conservation and management measures of this organization or violate them, or not cooperate with said association as established thereof; i) Significant violation of the limits of capture or quotas in force in accordance with the regulations established by the Regional Fisheries Management Organizations; j) Fishing transfer activity without Transfer Declaration; k) Other violations that may be determined by the Aquatic Resources Authority of Panama; ARTICLE 9. That it is considered special prohibitions of fishing, additional to those established in the Executive Decree No. 17 of July 9, 1959, that should comply capture and support fishing vessels of national and international service, the following: a) Fishing without a valid license, authorization or permit issued by the Aquatic Resources Authority of Panama, in areas or fishing zones that are not contained in the Agreements or International Conventions accepted by the Republic of Panama; b) Performing captures no registered and opportunely communicate, in compliance with the established in the conservation and management measures enacted over the particular by the Agreements or International Conventions accepted by the Republic of Panama, Aquatic Resources Authority of Panama, as well as the current relevant law; c) Performing fishing activities in close zone, fishing during a close season or fishing after attainment of a quota, or over prohibited depth; d) Fishing in areas over species and with fishing gears not authorized; e) Fishing in Exclusive Economic Zones of a country without a fishing license of the country; f) Performing transshipment or joint fishing operations with fishing vessels that have evidence of being involved in illegal fishing, unreported and unregulated (INDNR as per its initials in Spanish), especially those vessels registered in the list of fishing vessels unreported and unregulated of a Regional Fisheries Management Organization, or given support or supply to such vessels; g) Transshipment at sea without a watchman on board; h) Intentionally falsifying or concealing the trademark, identity or registration of a fishing vessel; i) Concealing, tampering with or disposing of evidence relating to an investigation of a infraction; j) Robbing, resisting, intimidating, sexually harassing, interfering in, illegally obstruct or delay an authorized surveyor or watchman; k) Multiple violations established in article 8 which together constitute a serious disregard of conservation and management measures; l) Other violations that may be determined by the Aquatic Resources Authority of Panama; ARTICLE 10. The infractions mentioned in article 8, constitute a gross negligence in accordance with the provisions of article 54, paragraph 2, Law 44 of 2006, which shall be sanctioned with a fine from ten thousand one dollars ($10,001.00) to a million dollars ($1,000,000.00), and the confiscation of fishing gears not authorized and product, in accordance with the aggravating or extenuating circumstances, the final cost of the damage or prejudice caused, the social and economic repercussion and repetition of the offender s default. The non-compliance of the sanction referred in this article shall be handled through coercive jurisdiction.

5 ARTICLE 11. The infractions for special prohibitions of fishing stated in article 9 of this Executive Decree, are serious breaches by its nature and in accordance with article 297 of the Fiscal Code, shall be sanctioned with the confiscation of the product and with a fine of one thousand ($1,000.00) for each gross registered tonnage and two thousand dollars ($2,000.00) for each gross registered tonnage in case of general recidivism. In case of special recidivism may be ordered the confiscation of the vessel. ARTICLE 12. For all legal purposes stipulated in article 10 and 11, the amount of the established sanction shall be based to its equivalent of the illegal activity incurred, the environmental consequences and the prejudice which involves such activity to the State. ARTICLE 13. The repetition of the infractions established in article 8 of this Executive Decree by international services Panama flag vessels or those registered abroad, shall be sanctioned in accordance with article 297 of the Legal Code. ARTICLE 14. In the administrative penalty proceedings for the non-compliance to the stipulated in the Agreements or Internationals Conventions by the Republic of Panama, the current law, the conservative measures and management enacted by such Authority, related to he aquatic resources, shall be provisionally suspended the license of capture or fishing support to the vessel being inquired as long as does not exist a fundamental decision that acquitted the vessel of the charge. The provisional suspension referred herein, shall be enacted by means of resolution issued by the Aquatic Resources Authority of Panama in presence of the presumed commission of a serious default and shall be opportunely communicated to the Maritime Panama Authority and to the Regional Fisheries Management Organization that the Republic of Panama is part for the relevant purpose. ARTICLE 15. Any other provision contrary to the present Executive Decree is repealed upon the entry into effect of this Executive Decree. ARTICLE 16. The present Executive Decree will come into force as of the date of its enactment. SUPPORTING LAWS: Law No. 17 of July 9 of 1959; Law 38 of June 4 of 1996; Law 44 of November 23 of 2006; Law 64 of October 29 of BE IT NOTIFIED AND ENFORCED. (Sgd. Illegible) OSCAR ARMANDO OSORIO CASAL Minister of Agricultural Development. (Sgd. Illegible) RICARDO MARTINELLI B. President of the Republic of Panama IT IS A TRUE AND LAWFUL TRANSLATION INTO ENGLISH OF THE ATTACHED DOCUMENT WRITTEN IN SPANISH. Panama, June 14, 2013

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