Michael J. Frevola (MJF 8359)

HOLLAND & KNIGHT LLP

195 Broadway

New York, NY 10007-3189

(212) 513-3200

ATTORNEYS FOR PLAINTIFF

CYGNUS TRANSPORT LTD.

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

JUN 1 9 ?007

CASHIERS

CYGNUS TRANSPORT LTD.,

Plaintiff,

-againstPALMYRA SHIPPING & CHARTERING LTD.,

Defendant.

07 Civ.

VERIFIED COMPLAINT

Plaintiff, Cygnus Transport Ltd. ("Cygnus"), by and through its attorneys, Holland &

Knight LLP, for its verified complaint against Palmyra Shipping & Chartering Ltd., alleges,

upon information and belief, as follows:

1. This is a case of admiralty and maritime jurisdiction as hereinafter more fully

appears and is a maritime claim within the meaning of Rule 9(h) of the Federal Rules of Civil

Procedure.

2. At all times material herein, plaintiff Cygnus was and is a business entity

organized and existing under the laws of Liberia with a place of business at 80 Broad Street,

Monrovia, Liberia.

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 1 of 33
3. Upon information and belief, Palmyra Shipping & Chartering Ltd. ("Palmyra") is

a business entity organized and existing under the laws of the Republic of the Marshall Islands,

with a principal place of business at Zug, Switzerland.

4. On or about March 1, 2007 Cygnus, as owner of the tanker vessel OKLAHOMA

(the "Vessel"), and Palmyra, as charterer, entered into a charter party under an amended

ASBATANKVOY charter party, to carry a cargo of 80,000 metric tons of fuel oil from 1/2 safe

ports in Sicily to 1/2 safe ports in the European Mediterranean (the "Charter"). A true and

correct copy of the Charter is annexed as Exhibit 1.

Cygnus' Claim for Demurrage

5. Total laytime used at the load ports and discharge port exceeded time allowed

under the Charter as set forth below:

Total laytime used at Augusta 78 h 34 rtiin

Total laytime used at Santa Panagia Bay 34 h 21 min

Total lavtime used at STS Gibralter 105 h 00 min

Total laytime: 217 h 55 min

Less lavtime allowance 84 h 00 min

Time on Demurrage 133 h 55 min

6. The Charter's demurrage rate is US$27,500 pro rata, which amounts to a total

demurrage due to Cygnus of US$153,446.18 from Palmyra. Deducting a brokerage commission

of 2.5%, Palmyra owes Cygnus at total of US$149,610.03 for demurrage.

7. Palmyra has refused to pay this demurrage claim, although duly demanded.

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 2 of 33
Cygnus' Claim for Diversion Costs

8. The Vessel consumed bunkers during a diversion of the Vessel by Palmyra prior

to loading. Cygnus has invoiced Palmyra with respect to these diversion expenses in the amount

of US$71,427.77, which are for Palmyra's account in accordance with Charter's Additional

Clause 6.

9. Palmyra has refused to pay this diversion claim, although duly demanded.

Cvgnus' Claim for Shifting Costs at Discharge

10. The Vessel consumed extra bunkers worth US$8,470.00 while shifting between

the two STS discharge vessels off Gibraltar, and accordingly this expense is for Palmyra's

account in accordance with Charter's Additional Clause 39.

11. Palmyra had refused to pay these shifting expenses, although duly demanded.

Summary of Claims

12. Accordingly, Cygnus claims the following:

Diversion costs: US$ 71,427.77

Shifting costs at discharge: US$ 8,470.00

Demurrage: US$149.610.03

Total amount; US$229.507.80

13. Pursuant to the Charter, the place of arbitration proceedings is London.

Accordingly, on or about May 16, 2007, Cygnus commenced arbitration proceedings against

Palmyra for its diversion, shifting, and demurrage claims.

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 3 of 33
14. Upon information and belief, it will take approximately two years for the

arbitration proceeding in London to be concluded.

 N

15. Under English law, Cygnus also is entitled to reasonable costs and attorneys fees

expended while prosecuting its claims to completion, which amount is estimated to be

$237,868.77, as set forth below:

Interest: $ 37,868.77 ($229,507.80 x 0.0825/year x 2 years)

Attorneys' Fees/Expenses: $ 200.000.00

Total Interest/Fees/Expenses: $ 237,868.77

Total Due Cygnus $ 229,507.80

Total Sought with Costs: $ 467,376.57

16. Palmyra is not found within the Southern District of New York but does have

assets, good or chattels within the jurisdiction, to wit: funds or accounts held in the name of

Palmyra Shipping & Chartering Ltd. with, upon information and belief, the following financial

institutions: Bank of America, N.A.; The Bank of New York; Citibank, N.A.; Deutsche Bank

Trust Company Americas; HSBC Bank USA, N.A.; JPMorgan Chase Bank, N.A.; UBS AG;

Wachovia Bank, N.A.; Societe Generate; Standard Chartered Bank; BNP Paribas; Calyon

Investment Bank; American Express Bank; Cornmerzbank; ABN Amro Bank; Bank Leumi

USA; Fortis Financial Groups; Banco Popular; or any other financial institution within the

Southern District of New York.

17. While all disputes arising out of the Charter are to be arbitrated in London,

England, the action herein is submitted in accordance with Rule B of the Supplemental Rules of

Certain Admiralty and Maritime Claims of the Federal Rules of Civil Procedure, as well as 9

U.S.C. §8, and is not and cannot be considered a waiver of the parties' agreement to arbitrate.

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 4 of 33
WHEREFORE, Cygnus demands judgment as follows:

1. That process in due form of law according to the practice of this Court in the form

of a writ of maritime attachment be issued against bank accounts and other property of Pahnyra

Shipping & Chartering Ltd. with the financial institutions noted above in paragraph 16;

2. That Palmyra Shipping & Chartering Ltd. and any other person claiming an

interest therein may be cited to appear and answer the matters aforesaid;

3. That judgment be entered in favor of Cygnus Transport Ltd. and against Palmyra

Shipping & Chartering Ltd. in the amount of US$467,376.57 (including estimated interest,

expenses and attorneys' fees); and,

4. That this Court grant Cygnus Transport Ltd. such other and further relief which it

may deem just and proper.

Dated: New York, New York

June 19, 2007

By:

HOLLAND & KNIGHT LLP

Michael J. Frevola (MJF 8359)

195 Broadway

New York, NY 10007-3189

Tel: (212) 513-3200

Fax: (212) 385-9010

Attorneys for Plaintiff

Cygnus Transport Ltd.

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 5 of 33
VERIFICATION

STATE OF NEW YORK )

:ss.:

COUNTY OF NEW YORK )

MICHAEL J. FREVOLA, being duly sworn, deposes and says:

I am a member of the firm of Holland & Knight LLP, counsel for Cygnus Transport Ltd.

("Cygnus"), plaintiff in the foregoing action. I have read the foregoing Verified Complaint and

know the contents thereof, and the same are true and correct to the best of my knowledge. I have

reviewed documentation provided to me by Cygnus and corresponded with Cygnus'

representatives regarding this matter. I am authorized by Cygnus to make this verification, and

the reason for my making it as opposed to an officer or director of Cygnus is that there are none

within the jurisdiction of this Honorable Court.

ichael J. Frevola (MJF 8359)

Sworn to before me this

19th day of June, 2007

Notary Public

Elvin Ramos

Qualified in Queens County

Certificate filed in New York County

Commission Expires September 2, 2010

#4615084 vl

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 6 of 33
EXHIBIT 1

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 7 of 33
iuo3'u6-AMww//:djm 3|S|A 'UOBBUIMIUI aiow jcy - P?A|3oaj SBM xej aiu.

Association of Ship Brokers

& Agents (USA.), Inc.

October 1977

3SCOSWAY STREET

UDHPON MW1 5BT

ORIGINAL

TANKER VOYAGE CHARTER PARTY

CODE WORD FOR THIS

CHARTER PARTY:

ASBATANKVOY

PREAMBLE

London

Wat*

%yyjs

1st March 1W

Due /^

IT IS THIS DAY AGREED between Cygnia Transport Ltd., Monrovia

thartaM owner/owner (hereinafter called the "Owner") oftoeSahamasffog - bttitt 2006

SSIMS "OKLAHOMA" , (heiwwftercattedthe"Vessel")

and Pafayfa Shipping and Chartering Ltd (herehwfter called die "Charterer")

dial the transportation herein provided for will be performed subject to the terns and conditions of this Charter Party, which includes this Preamble

aad Pan I and Part H. in the event of a conflict; the provisions Of Part I Wfll prevail over those contained hi Part fl.

PARTI

A,.. Dcwiptiw.*ri.PcritiQn.vtyswl'.-^ti4&rS:-JtedM-^flla*).S,^,.J>ifseiw-~ d<fitble~ktlU— V«ss#t-fittSil~S£T/CLS/IGS/CQW -

LOA 237. TIM - bean 42.00m - KTM 49.31m - BCM U6.53m - TPC 69.24 - 1x1Smt SWL crarw - GT 56,172 - f&f. dab: United

Kingdom Mutual Steam Ship AssHrtHtw Association (Bermuda) Limited. (See also Q88 as attached).

Desdweieht 105J6S metric tons (aa<IO Ibo.) Classed; Lloyds Register

Loaded draft of Vessel on assigned summer freeboard 14.85 metres &- -»r in salt water.

Capacity for cargo @ W%: 119,384 tu3 including slop tanJO. tant (of H10 tbt, «aefa) V. marc «• laac. Va«)»r; gptian.

Coated: []Yes [J!(f]No

Coiled: [ X] Yes Alubrass [ ] No

Last ws r*r«« car^oee/CA«rterers: £PC ^/entf cruda/AJba condensate/Fueloti - Litasco/PetrogaVIOOI.

Now: arrived Salonika am 1/3/07, ETS 3/3/07 Expected Ready: ££4 .Saute Panagia Say 5/3/07 att going well

B. Laydftys:

Commencing: 00:01 tours 7tA More* 2007 Cancelling: 24:00 hoars 7flt March 2007

C. Loading Portfc): 1/2 safe pans Sfcify

Cbsurterer's Option

D. Discharging Pon(i): 1/2 safe ports European Mediterranean oat East of but indwKng Qretce excluding Albania/Yugoslavia/

former Yugoslavia but including Turkish Mediterranean not North ofAliaga and Syria.

Charterer's Option

E. Cargo; minimum 40,000 metric tons Charterers option upto futt Cargo - HO dettdfreight for Charterers account provided

minimum quantity supplied - fuehU maximum 2 (ttvo) grades within vessels natural segregation - vessel to maintain loaded

temperature upto maximum 135 degrees Psthwheit •< maximum temperature on looting 165 degrees Fahrenheit

Charterer's Option

F. Fwight Rate Worlscale 105 (one hundred and five) minimum flat fawtpvrtfaJ-AJtosa to apply)* Where applicable, freight to be

calculated basis West of Sicily laden/Straits of Messina ballast - overage, if any, at 50 percent of agreed rate potton frfflMO 1U.

metric

rid Sfr:9e:9 Z002/S/01.

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 8 of 33
d. Freigfit Payable in US Dollars by telegraphic transfer to: Owners designated bank account at

H. Total Laytiine in Running Hours: 84 hours SHINC

•1. JENsaioiirege'tsir'dayr-^f^aiair 2T,5WpeY*dstyyro-mtt

J. Commission of 1.25 % is payable by Owner to Braemar Seascape Limited

on the actual amount freight, deadweight and demurrage when and as freight, deadfreight and demurrage is paid.

K. The place of General Average and arbitration proceedings to be London /New York (strike out eaefr

fcr Tovalop: Owner warrants Vecsel to bo amembar of TOVALOP cohemo and will be co maintamtd throughout duration of this chartti.

12

M. Special Provisions: Palmyra terms 1-55, as emended and attached, together with additional clauses 1-tt, as attached, are deemed

incorporated into Ms Charter Party.

IN WITNESS WHEREOF, the parties have caused this Charter, consisting of a Preamble, Parts I and II, to be executed in duplicate

as of the day and year first above written.

Witness the signature of:

By:

Witness the Signature of:

By:

This Charterparty is > computer generated copy of ASBATANKVOY fonn, printed tndcrli«ncc farm the Association of Sh%> Brokers & Agents (U.S-A-). Jnc, using software which is the

new characters, such characters being daily highlighted u having been made by the licensee or end nser a appropriate and not by die author.

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 9 of 33
PARTH

WARlWTTi'-VOYAGE-CARGO, The vessel classed is spe^

.»-. ^

r a nol indcoo^lelc cargo of petrowurnaiid/orits

produce ia balk, not «ff«!»ting what she can reasonably stow and cany over and above nor bunker feel, consumable stores, boner feed, culinary sod drinking water, and complement and fcir

effipcts (sufficient space to be left m the tanks to provide for Ac expansion of the cargo), and being so- loaded stall forthwith proceed, as ordend on signing Bffis of lading, direct to me

Discharging Portfe), or $0 near thereunto as she may safely get (always afloat), and oVUvw said cargo. If lieatrngcf the cargo is requested^ te

t o maintain fil e ternpeistures requeste d .'... . . ' '...• - . • • •

2. H^GHT. Frei^shaD be at the rate rtil^ted in Pirt I ami shaH be confuted mif^fy of lading mute quantity (except deadfteight as per Clause 3) M shown on flu

-- iifitn Ihi Mamr

fga

3. DEADFRHGHT. Shontettic OmtererM to surety a Mcgga the Vessel rnay, at tte

that the tints in wlach cargo is loaded are sufficiently fifed to put her in seaworthy condition. In that event however; deadfreight shall be paid at the nte specified hi Fan I hereof on ia

difference between the intake quantity and the quantity the Vessel would haw canied if loaded to her nm«»ittmpeniassiblefiwbo«d forth* voyage,

4. NAMING LOADING AND DISCHARGE PORTS.

(a) TlKOOTtetershaEnarne the totdtng port or ports at least twei^fon^^

for the voyage, or upon signing this Charter if Ac Vessel has already sailed However, Charterer shaH have die option of ordering the Vessel to the following destinations for wireless orders:

On a voyage to a pott or ports in:

. . -. . - . . . ;- . . -

PORTSAID Eastern Mediterranean or Persian .Gulf loading port(s) •

(fiom ports west of Port Said.) .

(b) If lawful and consistent with Part I and wifli tie Bills of Lading, the ChanerasluU have the <^on of nannnatmg a discharging

Vessels arrival at or off the following places:

Place On a voyage to a port or potts in: . .

LAND'S END . LMtedKingdom/O»rrtbent(Boideaux/Hambttrg range)

or Scandinavia {indoding Denmark) .

SUEZ Mediteranctn (from Poian Golf)

GIBRALTAR Medifemmeaii (fiom Western Hemispher«).

(c) Any extra expense incurred hi connection with any change in loading or discharging ports (so named) shall be paid tor by the Charterer and any time thereby lost to the Vessel shall

•••mt as used Layb'me.

5. - LAYDAYS. Laynrne shall not commence before the date stipulated m Part L except with the Charterer's sanction: Should the Vessel not TK ready to .load by 12:00 -WO o'clock P.

M ff^Hj^^.fi^v.<mmllii^a^.ffip^

afler .such canctUatipn date; ptherwise this Charter to remain in AB fbrce sait&Ktlf Of Oily time it appears to Owners that tile Vessel's arrival at the first/S»le

loading port will be delayed beyond the new cancelling date determined under this clause 5, Owners shall notify Charterers in

writing of the date and time that they expect the vessel to be ready to load. If the date and tune so notified by Owners falls after the

'~ """~" "' "' ~'" ' --"••—- ..... -•' --• •-

 :~*"" ..... -• ••—'•••• =-- •-•--••-- -.—- -•••-• •-'• - -.•....•-•• -- ..:-.-.-. ,-.-.... •—-

(48) hours (Sundays iirut f&fiilays exiiej&aj afjeceipt Owners or ivithih Wen$four(24) hours after iRe

for the purpose of this clause 5 shattbe twelve (12) hours after the date and time notified by Owners, or suck other date and time

-£-• J4gxji^~(jp .KSSlNESS. Upon anivai at customary aivtiujray at each port of loading or discharge, the Master or his agent shall give tie Charterer or his ajenl notice by..lctter,

ttlegra^.WDefesS'Wtdeptero'tiratte Ves^isreadrttflf^or'd^

after tendering nee%t of 'such notice, or upon the VesseTs anivai in berth (it., finished mooring when at * scaloading or discharging tennmal and aQ fast when loading or d&cnargrog

alongside a wharf), whic.hever tot occurs. However, where delay is caused to Vessel get^ into bnftatte giving M

delay shall not count as used Uyride: ............. "•'" • r ........ • ..... ••"••• ..•••..• • : .•-•.-,. • • •••••.. . •.-....•- . : •

7. IiOUKSK>RlX)APING AND DISCHARGING. TTKcnmber of rurming hours tpecified as Uytiniem

cargo; bat any. delay due to the Vessel's condition or breakdown or inability of the Vessels racffines to load or discharge cargo within the tune allowed shall not count as used laytirne. If

iregubvtkns of-the Owner or port aothoritiw prohibit toadrng-cr discbargnigof the cargo ^ atnlght; tira'so tort atoUnet'coinft as usedlaynine; if the Charterer, shipper or cansignee prohibits loidicg

or dtschaigtng at night, time so lost shall count as used laytime. Time consumed by the vessel hi moving tram loading or discharge port anchorage to her loading or discharge berth, discharging

ballast water pr slops (unless performed concurrentfy with cargojiandling operations in which case time -shatt count), win not count as used

laytune- ''"'.'' ' ' '• • ;- '•'•''• . • •• '•' • ..-..-,: . •. •. . • • .. . ........ .... . ........ .

8.

 : DQvfrjIOtAGEChtrterer^shaapaydemanagef^n^ghcwandpioratt^

srt-^ncr by a 5b*e, lockout, stoppage or rcswim of labOT or ^breakdown of mac»

nmixage shsflte reduced one-half of the an»unt stated in Part ^

.. Jelay caused by strike, lockout, stoppage or restraint of labor tec Mailer; officers andcrew of the Vessel or tugboat orpflots.

9. SAFE BERTHING - SfflKTlHG. The vessel shall load and discharge at any sati place or wharf, or alongside vessels or lighters reachable on her arrival, which shall be designated

Charterer shall haw the right of sniffing the Vessel at ports of loading and/or disdiaige fiom OM saft t»rflj to another tff^WOT and then back to the SWte Safe berth on

paymoitofaD towage and pilotage shifting to next berth, charges for nirmirigtmcs on antval at and leaving that bertlu add

other extra port charges or port expenses inarmed by reason of using more than one berth. Tine consumed on account of shifting shall count as used laytime except as otherwise ptpvided in

Clause 15 . .... . ........ .

10. PUMPING IN AND OUT. The cargo shall be pumped into the Vessel at the expense, risk and peril of the Chatterer, and shall be pumped out of the Vessel at the expense of the

Vessel, but at the risk and peril of the Vessel only so fo as (he Vessel's permanent hose connecn^, where d^rvery of tie (ai^ shaB be takm by the Chartner or its

Charterer, Vessel ate disctiargmsu to clew shore pipe te^

supply her pumps and the necessary power for discharging in an ports, as well as necessary hands. However, should the Vessel be prevented from supplying such power by reason of regulations

prohibiting {to on rward, Ae Qiaileier or consignee shan si^pply, at to

ftr other purposes. If cargo is loaded fiom lighters, the Vessel shall fimash steam at Charterer's eaqjense for pump^ca^mto its yessel,tf requested by tte

facilities (or generating steam and is permitted to have fires on board. All overfme of officers awi crew incun^ in lo*dmga«!/OT discharging sha^

11. HOSES; MOORING AT SEA TERMINALS. Hoses for kading and discharging shaU be furnished by the Charterer and shall be connected and disconnected by the Charterer, or, at

the option of the Owner, by the Owner at the Charterer's risk and exi«nse. UytroeshaH continue inifil the hc«es have been diswrnne^

Vessel shall be properly equipped it Owner's expense for loading or discharging at such place, indudmg suitable ground tackle, mooring lines and equipment for hanolinjsutinnrjne hoses.

YL DUES - TAXES - WHARFAGE- The Charterer shall pay aO taxes, dues and ofcr charges on tic cargo, including but not nnjtcd to Customs overtime on the Cargo, Venezuelan

HibiB^on Tax, C.IJvf. Taxes at 1^ Havre and Portuguese IinpostodeCoimerora Man

assessments and governmental charges which are not presently to effect but which may be taptc^ hi uVtubireon the Vessel <»tWghtT1ie Owner afiall pay aB dues awl o

Vessel (whetfiCT or Krt such dues or charges are assessed on tlK basis of quarrity of c^

of charges tor the use of any wfcarf, dock, place or mooring aciBty arranged by the Oiarterw for the purpose of toadmg« discharging cargo; towe^

for such berth when used solely for Vessel's purposes, such as awaiting Owner's orders, tank cleaning, repairs, etc. before, during or afler loading or discharging.

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 10 of 33
1

 13. (t). CARGOES EXCLUDED VAPOR PRESSURE Cargo shall not be shipped which has a vapor pressure at one handled degrees Fahrenheit (100 degF.) in exoess of tinrteen

and one-tulf pounds (13.5 Ibs.) as determined by the current A.S.T.M. Method (Reid) D-323.

(b) FLASH POINT. Cargo hiving a flashpoint under one hundred and Sto degrees Fahrairieit<l 15 degF.) (closed cup) A^T,M.Metr^

tockosesh»llixttre^ctiheChsrtCTCTfromloa<ti^

14." Taj. TCEfneasVp^ of loading'or als^^

nTai«ffip^"&"Ca5uten»fs16$p%^

cargo in bulk. Tie whole of the time occupied ftom the time the Vessel is diverted by reason of the ice until her arrival ttaafcc-frce port ofbaing or (Hsctmige, «s tile c«se nay be, slufl be paid

for by (be Charterer it the demurrage mte stipulatedmPart t

(b) If on «eonnt of ice the Master conskta it dangerous to enter or remain at any loading or discJmjrng place Jbrti» of the Vessel bcmgfiijzes in or dragged, tbe Master sh«Il

communicatebytelegrarjhorradio, ifavailsbks witnfl*Cto

Qause 14 (a) wneren^e is no danger of ice and where there are the necessary fa^^

case Charterer la pay ftr the time that the Vessel may be delayed, at the demurrage rate stipulated m Part L

15. TWO OR MORE PORTS COUNTING AS ONE To die extent (hat the freight rate standard of ntomixtfeciE^aPatlfbantpRm^^iffd^fwix^ixcoalmt&sitt

of ports or terminals, any two or more ports or terminals within each such grouping or combination shall count as one port for potposes of calculating freight and demurrage only, subject to the

following conditions:

(a) Charterer shall pay fimght at tfalrighett rate p^^leimder Part IFhero^

(b) AH charges normally incurred by reason of using man than one berth shall be for Charteter^ account as provided hi Clause 9 hereoC

(c) Time coiisninedsMr^ oetween the ports ortamfaaU within the pa

(d) Tiniecorjstnried shifting berwraberAswitrim one of ^

16. GENERAL CARGO. The Charterer shall not be permitted to ship »ny packaged goods or aon-ftpiid bulk cargo of any rkscrn^^

is to consist only of KquiiJ bulk cargo as specified in Clause L

17. (a). QUARANTINE. Should the Charterer tend (be Vessel to any port or place where a qutraDrhie exists, ariy del^ ttra^ cau^ to fe Viss^l shafl crxmt as used laytirne; but

should Ihe quarantine not b* declared until the Vessel is on passage to such port; the Charterer shall not be liable for any resulting deby.

(b) FUMIGATION. If tteVusel, prior to or afler enln^tf)onlfai3 Oiarter, has docked OT

rat-free or JtefjOrnyia-fr«whait be funrigated by toe 0

18. CLEANING. The Owner shall dean the tanks, pipes and pumps of the Vessel to the satisfaction of the Charterer's Inspector. Toe Vessel shall not be responsible (or any admixture if

man than one quality of oil is shipped, nor for leakage, contammarion or deterioration in quality of the cargo unless fee admixture, leakage, contamination or deterioration results from (a)

uaseiworrhinesjexotir^at flic trrae of loading or «t the iowption of t^

leading, care or discharge of the cargo.

19. GENERAL EXCEPTIONS CLAUSE. The Vessel her Master and Owner shall not, unless otherwise in this Charter expressly provided, be responsftle for any loss or damage, or

delay or failure in performing hereunder, arising or resulting from:- any act, neglect, default or barratry of the Master, pilots, mariners or other servants of the Owner in OK navigation or

management of the Vessel; fire, unless caused by the personal design or neglect of the Owner; collision, stranding or peril, danger or accident of fix sea or other navigable waters; saving or

attempting to save life of piopeity; wastage in weight or balk, or any other toss or damage arising from-inherent defect, quality or vice of fee cargo; any act or omission of the Charterer or Owner,

per or consignee of the cargo, their agents or representatives; insufficiency of packing; insufficiency or inadequacy or marks; explosion, bursting of boilers, breakage of shafts, or airy latent

.^inhull, eflrapmojtor machioery; imseaworthinessofthe Ve^unkscan^by wintof due diligence pnifc,p«offoOJ^iton^

rraja^ etruippedarxlsupptiea^ or^

Shall, Unless otherwise in this Charter expressly provided, be responsible for any loss of damage or delay or failure in performing heteuoder, arising or resulting from- Act of God; act of war;

perils of the seas; act of public enemies, pirates or assailing tirieves; arrest or restraint of princes, rulers or people; or seizure under kgal process provided bond is promptly furnished to release the

Vessel or cargo; strike or lockout or stoppage or restraint of labor from whatever cause, either partial or general; or riot or civil commotion.

20.. ISSUANCE AND TERMS OF BILLS OF LADING.

(a) The Master shall, upon request, sign Bills of Lading OS presented in flu form apptiring b«tew tor all cargo snipped but without prejudice to the rights of fte Owner and

Cbarterter under fce terms of this Charter. The Master shall not be required to sign BSb of Idling £OT my pxtrtwhKh, the Ves

.^^.blockadedpprt, ,......,,,..,.,.,.,, ; ,. ...,: ... ..: ...'..,.,.;,...,;., ... ..,•... •.• •,,,,•,...•..:..• .-.,.:•,.•.. ,:,-.-,, . . = •.„•-,....-•...:-.., •..'...„•;•: •"-:•••• •.•-.,.•. .

(b) Tte'carriage of cargo utxlerufo Charter Party and rjnd^

sub^par»g>»phs(i) through (vn) of this clause and such terms sliaH

any Act referred to therein, the word "carrier" shall include the Owner and the Chartered Owner of the Vessel.

(i) a»U^'PfflQOsroT»rr. TttVBuTofli of GaMfe} Sea 'Km of fte United Sites, approved ApS 16". 193«, except.

thattf.th^3iljo£lj4rr^ is issaed^a place.whe^any-^feig^

of Lading at Brussels, August 1924, then this Bin of Lading shall have effect, subject to SK provisions of such Act, ordinance or legislation, the applicable Act, ordinance or legislation

(TwreinarW called the "Acf^shaD be deemed to be irKXjrjwratedbcrem and r»fi^

any of its rcspoosMities or liabttities under the Acx If any ram of i^

(ii) JASON CLAUSE. In fte event of accident, danger, damage or disaster before or ate the commencement of the voyage, resulting from any cause whatsoever, whether due to

negligent* or not, for which, or ftr the consequence of which, the Owner is not responsible, by statute, contract or otherwise, die cargo sluppere, consignees or owners of the cargo shall

conn^)ute who ttk Owna in General Average to the payn^ of any sioffices, los^

charges incurred in respect of the cargo. If a salving ship is owned or operated by the Owner, salvage shaS be paid for as fhlly as if the said salving stop or ships belonged to strangers. Such

deposit as the Owner or his agents may deem sufficient to cover the estimated contribution of the cargo and any salvage and special charges thereon shin, if required, be made by the cargo,

sJuprjeis,cotisigri«s or owners of the cargo to the carrier before delivery.

(Hi) GENERAL AVERAGE Genert AwrageshaD be adjus ted, statM and settled//* US Bettors according to Yodc/Astwerp Rules 1994 W» and, as to matters notptovided

for by ftose rules, according to the laws and usages at the port of New York or at the port of London, whichever place is specified in Part I of this Charter. If a General Average statement is

required, it shall be prepared at such port or place in file United States or United Kingdom, whichever country is specified in Part I of this Charter, as may be selected by <fae Owner, unless

•"•rrwise mutually agreed, by an Adjuster appointed by the Owner and approved by the Charterer. Such Adjuster shall attend to the settlement and the collection of toe General Average, subject

stomary charges. General Average Agreements and/or security shaH tefuraisl»ed by Owner and/or Charterer, iiid/OTOwi»

i.-dc as security to pay General Average and/or salvage shad be remitted to the Average Adjuster and stafl be held r^ him at tds risk in a special account in a duly authorized arrffceit^ bank at

the place where the General Average statement is prepared,

(iv) BOTH TO BLAME. If the Vessel carries into crillisian with arother sh^

the servants of the Owner in the navigation or m the managanent of the Vessel, the owners of the cargo ranied hcreunder shall inderiiniry the Owner against all loss or liability to the other or

non-carrying ship orherownot in so far as such loss or liability represents loss of, or damage to, or any claim whatsoever of the owneirsaf said cargo, paid or payable by the other or recovered

by the other or Bon-carrying ship or her owners as part of (heir claim against the carrying ship or Owner. The foregoing provisions Shan also apply where the owners, operators or (hose b charge

of any ships or objects other than, or m addition to, the colliding ships or object are at fault b respect of a collision or contact

(v) LIMITATION OF LIABILITY. Any provision of this Charter to the contrary notwithstanding, the Owner shall have the benefit of sS limitations of, and exemptions from, liability

accorded to the owner or chartered owner of vessels by any statute or rule of law for (he time being in force.

(vi) WAR RISKS. (a) If any port of loading or of discharge named in this Charter Partyor to which the Vessel rmy properly be ordered pursuant to the terms of the Bflls of

Lading be blockaded, or

(b) Ifowmgtewy war, hosnlities, warlike operations, civfl war, c^^

die loading or discharge of cargo at any such port be considered by the Master or Owners fc his or their discretion dar^eroiis or proKljited or (b) ft be oorisidered by te

or their discretion dangerous or impossible for the Vessel to reach any such port of Icadmg or dischai^-tlw Charterers shaD have ferigM to otdfrr the ^

to be loaded or discharged at any other safe port of loading or of discharge within the range of loading or discharging ports respectively established under the provisions of the Charter Party

(provided such other port is not blockaded or that entry thereto or loading or discharge of cargo thereat is i»t in the Masters or Chweri discretion cancerous or p

of discharge no orders be received from die Charterers within -48 hotTOato they or tiro agerdsha\*re«»^ from tte

then be at liberty to discharge the cargo at any safe port winch they or (he Muter may hi their or his discretion decide on (whether within die range of discharging ports established under die

provisKrrn of the Charter Party or not) and such ddscrJu^shaH be d«m^

of Ihe cargo being loaded or discharged at any such other port within the respective range of loading or discharging ports established under the provisions of foe Charter Party, the Charter Party

shall be read in respect of freight and an other conditions whatsoever as if the voyage performed were that originally designated. In the event, however, that the Vessel discharges die cargo at a

port outside tie range of discharging ports established under the provisions of the Charter Party, freight shall be paid as for the voyage originalry designated and all extra expenses involved in

reaching the actual port of discharge and or discharging the cargo thereat shall be paid by the Charterers or Cargo Owners. In the latter event the Owners shall have a lien on the cargo for an such

extra expenses.

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 11 of 33
' (c) TneVe^lsfaan have Ifeerly to tt^h/ with airy dteclOTgcTimHrin^

otSerwi«wtotsoev»pv« by flM go veramoa of te nations undo wbow^ the Ve»dj«ib

by any person «rboxh/a^ ot purporting to a* as or wftfa ft* auttor^

o^

dfeciarge 4teearjaSu4discliai^sliaHied«OT^tobed»e^*^^

at Cbc port or ports originaDy designated or to which the vessel my hive bees ordered ptisan* to the terms of the Bflls of Lading. AD extra expenses nvolved in reaching and discharging (be

cargoatanysuciotherpcrtofcUsdiaTgesbaUbepjidbytheaunerersai^^

(vfi) DEVIATION CLAUSE The Vessel start have liberty to can « any pore in ray order, to sail with or without puots, to tow or to be towed, to go to the assistance of vessels in

Any salvage shaH be for flie sote benefit of the Owner.

after delivery of the cargo into the possession of fte dniterer, or of the holders of nay Bflls of lading oovwuifflie sane or of any stonjeaaa.

21 AGENTS. The Owner sliaH appoint Vessel's agems at iH ports.

23. BREACH Dam^ for breacWf this Ojartersnaflilictadean

24. AWSFTRATION. Any 1^ aB difttettjes and disputes of wbalw^

whichever pboe is specified in Part I of this charier pursuant to the laws relating to arbrtnoon there and under the Current terms Of the London Maritime

Arbitrators Association W-SMW, before a board of thre* persons, consisting of ooeaiWtrator to be appointed by the Owner, one by fte Ctarterer, and OK by the two so chosea The

decis^ofapyrwofJhe.threeon.afiypomtprpoiiltssWbefi^

writtonotospecajing die Barae and address of the arb^

If the other party shall not, by notice served \a»n in officer of the first moving party wifcin twenty days of the service of such first notice, appoint its arbitrator to arbitrate the dispute or

diflerenees specified, then the first moving party shaB have the right wiftoat farther tutice to appoitt a sccoiriatbilrator. who shin bet d^

eflect as if said second arbitrator has been appointed by the oiher party. In the event te the two arbitrates &1 to appoiffl a thWarfainsWwithmwet^d

irbitrator, either arbitrator nay apply to a Judge of my court of inirhine jurisdiction rotf* city sboveraenticinrffVfe

such Ji^e OT »BCO »n>Hcalion snafl have piroisefy the san* &r«

heannp eidier par^ sbaU have flie right by writam mtk» seiyed m

Hjtpmiimfinn Awards gBde in pursuance to tfajS Clause may include posts, JnrJiJiqg a mnnrai\\K aVipumer for fOanuafa fe«i, mi jinlgmiM* may he enfemd »ynn any awjTri TmA- ha^myferin

any Court having jurisdiction in fhe premises.

25. SUBLET. Charterer shall have the right to sublet the Vessel However. Charterer shall always remain r^w^Tsle fix nM&lffllnxffl of diis Chatter in all itjtmms and <x>»<BtioTis.

26. OIL POLLUTION CWUSE Owner ag«« to participate in Oiarterei'sprogram^c^^

''ast or oil in any form of a persistent nature, except under extreme circumstances whereby the safety of tbe vessel, carjo or Kfc at sea would be hnperikd

UpMiwticc bring grven to the Oijmer that alPolhmonAvoidanc«ooirtrols^»^

tank wishing1 <urtyb«ltet,ete,ui CM <»mnaitE)ent;v ..... .

If die Charterer requires tot demubifiers shall be used ibr the separation of oiVwater, suAo^muJsifiersshaBbeobiaBiMbyn>«OwnerandpaWf(ffby C3iartero^

Tie oa residues win be pumped ashore at the loading or discharging teminjU, either as segi^alrfc^c^bsllistoroo-niingkdwithcii^asitispossiblefbr Qimcrera to arrange. If it i«

necessary to retain OK residue on board co-mingled with or segregated from the caijo to be loaded, C^rterecs shall pay for any deadfioght so iocuned..

The Charterer agrees to pay freight as per the terms of (he Charter Party on any consolidated tank washings, dirty ballast, etc., retained on board under Charterer's instructions during fhe

loadMpoitta ef fc voyage up to a maxiiiiimon% of te totd

discharging port is pumping ashore oil residues shall be for Charterer's a«»unt and extra tin^ if any, cammed for ftiscfiera!TM

Shipped in apparent good order and condition by

onboanTiflie • Steaniship/Mworslnp

waereof """ '.""" " "'" ' " " " isMaster,atSeiK>rtof

to be delivered at fte port of

or so near thereto as the Vessel can safety get, always afloat, unto

r'-wier on payment of freight at the rate of

This shipment is carried under and pursuant to the terms of the contractfcharttr dated New York/London

between and , as Charterer, and

an the teinr whatsoever of the said cotitra<*chaiterex«pt the rate and pavraent of frnghtspecffi

In witness whereof Ae Master has signed Bills of Lading

of this tenor and date, one of which being accomplished, the others will be void.

Dated at this day of

Master

This Charter Party is a computer generated copy of the ASBATANKVOY ftrm, prints unto KcMce ftom the Assodatta of Sup Broken & AJB^

copyright of Strategic Software Limited.

It U a precise copy of the original document which can be modified, amended or added to only by striking out of original characters, or the insertion of new characters, such characters dearly

highlighted by underlining or use of colour or use of a larger font and marked as having been made by the licensee or eol user as appropriate and not by the author.

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 12 of 33
Palmyra Shipping and Chartering Ltd additional clauses to "Asbatankvoy" Charter Party

(Chartering terms effective 15th September 2004)

1. Asbatankvov Charter Party - Deleted

Owners amendments to Asbatankvoy

Part I(G): after "payable" insert "in US Dollars by telegraphic transfer"

Part I(H): insert "84 hours SfflNC"

Part I(K): delete "New York"

Part 1(1): delete

Part II

Clause 2 line 2: delete "intake" insert "bffl(s) of hiding"

lines 2-3: delete "as shown... inspection"

lines 4-5: delete "less any... insurance thereon"

lines 6-8: delete "T he services... certificate."

Clause 5 fine 2: delete "4:00" insert "12:00 P.M."

line 6: after "effect" insert as new sentences "If at any time it appears to Owners that the

vessel's arrival at the first/sole loading port will be delayed beyond the new cancelling date

determined under this clause 5, Owners shall notify Charterers in writing of the date and time

that they expect the vessel to be ready to load. If the date and time so notified by Owners falls

after the cancelling date then Charterers shall have the option of cancelling this charter

which option shall be exercisable within forty-eight (48) hours (Sundays and holidays

excepted) of receipt of the said notice from Owners or within twenty four (24) hours after the

cancelling date, whichever is earlier. If Charterers do not exercise their option to cancel this

charter then the new cancelling date for the purpose of this clause 5 shall be twelve (12) hours

after the date and time notified by Owners, or such other date and time as may be mutually

agreed."

Clause 6 line 5: delete "receipt" insert "tendering"

Clause 7 line 9: after "slops" insert "(unless performed concurrently with cargo-handling

operations in which case time shall count)"

Clause 9 line 6: after "another" insert "or from and then back to the same safe berth"

Clause 20(a) line 1: delete "in the form appearing below" insert "as presented"

Clause 20(b)(iii) line 1: after "settled" insert "in US Dollars"

Iine2: delete "1950" insert "1994"

Clause 24 line 4: after "in force" insert "and under the current terras of the London Maritime

Arbitrators Association"

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 13 of 33
2. Worldscale clause;

Worldscale terms and conditions as in effect on date of this Charter Party to apply (except where

lumpsum freight is used).

3. Eligibility clause:

Owners warrant that tile vessel is in all respects eligible and not blacklisted or prevented for any

reason whatsoever for trading to the ports and places specified within this charter party, and that at

all times she shall comply with and have on board all certificates, records and other documents

required for such service and as amended by:

- Article VH of the International Convention of Civil Liability, for Oil Pollution Damages of 1969

(CLC certificate)

- Solas Safety Construction and Safety Equipment Certificate.

- International Maritime Organisation (IMO)

- ISM Certificate (as from 1st July 1998)

- EPS certificate (as from 1st July 2004)

In the event that the vessel does not meet any of the above requirements Charterers/suppliers/

receivers may refuse to berth, discharge or continue to discharge without penalty and/or any delay

resulting therefrom shall not count as laytime or if the vessel is on demurrage as time on demurrage

and Owners shall indemnify Charterers) for anypyt damages or expenses incurred as a

consequence of any such breach. proven

4. Cast iron:

Owners warrant that all riser valves and fittings, outboard of the last rigid support to the vessels

deck, that are used in the transfer of cargo or ballast, will be made of steel or nodular iron and that

only one steel spacer or reducer will be used between the vessels manifold and the loading arm. the

fixed rigid support must be designed to prevent both lateral and vertical movement of the transfer

manifold, no hoses of any sort whether inboard or outboard of the last fixed rigid support will be

used for the transfer of cargo or ballast except in emergencies.

5. Lightering/STS cianse:

If lightering/STS is required at any designated port, safe place, or anchorage which shall always be

subject to the Master's approval (not to be unreasonably withheld), time consumed performing

this operation, (including bank loadmg) shall count as laytime or time on demurrage in either event,

time shall commence upon the vessel's arrival at the location ordered by Charterers and

terminate when unmooring has been completed and all of Charterers equipment and

personnel have been removed from the vessel. If STS is sole loadport or discharge port then

Charterers shall have the benefit of 6 (six) hours notice ok' (6>-homro oftor anchoring or

whenever fro lightening oraft in all DOOBTO alongoido, whiohovro oo»uro firot. The anchorage, STS or

lighterage area shall art be considered as an additional port or berth. Any running time from such

lightering area to berth shall as* count as laytime or time on demurrage. All such lighterage/STS

operations shall conform to standards not less than those set out in the latest edition of the

ICS/OCIMF ship-to-ship transfer guide (petroleum). Charterers shall provide at their time

and expense all necessary equipment and personnel for safe lighterage/STS operations

including but not limited to booms, craft, fenders, hoses and mooring master.

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 14 of 33
6. Diversion clanse:

Notwithstanding anything else to the contrary in this Charter Party, and notwithstanding what

loading and/or discharging ports have been nominated and Bills of Lading issued, discharge port(s)

shown in the Bills of Lading not to constitute a declaration of discharge port(s), nor an exercise of

option. Charterer shall have the right to change his nomination of loading and/or discharge ports in

accordance with Part I clauses C and D hereof, any extra time and expense (including bunkers)

incurred by Owner in complying with Charterer's orders shall be for Charterer's account and paid at

the demurrage rate plus bunkers consumed for maintaining cargo temperature together with freight

against Owners' invoice with supporting documents to follow. oalomlatQd in aooordanoo with Part n

olauoe 1(o) of thio charter. Freight shall be paid on the basis of the voyage actually performed.

Charterers shall have the right to make as many changes as they seem necessary.

7. Blending clause - Deleted

8. Discharge/re-load clause - Deleted

9. Pour point depressant clause - Deleted

10. In transit loss clause:

Owners will be responsible for the full amount of any in transit loss, if any in transit loss exceeds

&3£ 0.5 percent and Charterers will have the right to claim from Owners dodust from froight an

amount equal to the FOB port of loading value of such loss plus freight and insurance due with

respect thereto.

11. Clean ballast clause:

Vessel to arrive at load port with clean ballast. No freight on slops, or deadfreight caused by slops.

Ballasting/debaJlasting time not to count even if on demurrage unless concurrent with

loading/discharging operations. Any expenses and/or time lost as a result of the vessel failing to

complete deballasting operations within a period of 6 hours shall be borne by the Owners.

12. Pumping clause:

Owners warrant that the vessel is able to discharge the cntiro cargo within twenty-four hours at a

single discharge port or within eighteen hours at each discharge port if more than one or

capable of maintaining a an average backpressure of 100 p.s.i (7.0 kg/sq.cm) at the manifold

(except when stripping, draining, changing grades/pumpsfcrnde oil washing) providing shore

facilities permit and/or are capable of receiving same within such time or at such pressure. J»

ooo "•—-To- — thTMo — voaoo » »«W»l- A*W* failsU t «-o» oomtil — -*'.**J-«yi/ ..«*» "ith th * «~«o- atro" -1*V « To V pai WM^Vd roquiromon . » V^VW V^UVO^Vt Q-.-nor , --», ..—„-.a ij t Wo na JJ«y-*V» y for. an 1MJ. y ovortim J V 1 UL U-UAo V

original invoio OB prooantod. If shore facilities do not permit discharge within the agreed time, then

master to issue a letter of protest and to have same counter-signed by the terminal showing manifold

pressure, pump room pressure and RPM any internal stripping and any start/stop time provided

signatures are readily available and BO delay is incurred.

8

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 15 of 33
If vessel fail to maintain its pumping warranties or need to be repaired and as a result of such causes

and events the vessel loses its turn to berth, laytime and demurrage shall be suspended until regains

the same berthing position, if such causes or events occur while vessel is in berth, extra expenses

thereby incurred directly by Charterers in connection with the vessel remaining at the berth shall be

for Owners" account and Charterers shall also have the option to order the vessel out of berth, so as

to avoid delay to other vessel waiting to use the berth, with toe cost of unbertbing and reberihiag for

this purposes to be for Owners account time lost hi between berthing shall not count as laytime or

demurrage.

13. NOR clause-Deleted

14. ETA clause:

Provided time permits vessel to give eta notices in accordance with Charterer's voyage

instructions and at least 96/72/48/24/12 hours prior arrival at load and discharge ports, when such

eta notices are not given, any delay at either load or .discharge port(s) resulting from ETA notices

not being sent to be for Owners" account even if vsl is already on demurrage.

15. Texaco Shore Release clause.

Time spent awaiting cargo documents and / or awaiting vessel release by shore authorities or

cargo inspector after disconnection of hoses in excess of three (3) hours shall count as laytime

or, if the vessel is on demurrage, as time on demurrage.

16. Waiting for orders clause:

Charterers to have the liberty of instructing the vessel to wait for orders at a safe place upto a

maximum of five (5) days, with time to count at demurrage rate plus bunkers consumed for

maintaining cargo temperature and staying adrift all being paid together with freight

17. Adherence to voyage instructions:

Owners are responsible for master's/vessel's non compliance with timely voyage orders given

under this Charter Party, provided that they are in accordance with the terms and conditions

thereof, and any time lost as a result of failure to comply not to be for Charterers account

18. Highbury Early Loading clause

If, upon Charterers' instructions, the vessel tenders notice of readiness or loads earlier than

commencement of laydays, then Charterers shall have the benefit of such time saved when

calculating laytime and/or demurrage. Such benefit shall be half the time between tendering

notice of readiness or making all fast, whichever occurs first, with laytime and/or demurrage

thereafter commencing to run in accordance with this charter, until the commencement of the

original laydays.

19. Free practique clause - Deleted

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 16 of 33
20. Excess berth occupancy:

If after the disconnection of hoses, the vessel remains at berth exclusively for vessel's purposes,

other than by reason of force majeure, or ballasting the Owner will, at the terminal's option, be

responsible for all direct or-indiroot costs charged to Charterer by the terminal, the suppliers, or the

receivers or alternatively shall be required to vacate the berth immediately upon terminals request.

21. Hose connections:

It is understood that Owners crew will assist with the connection of hoses on board.

22. Claims clause:

Charterers shall be discharged and released from all liabilities in respect of claims Owners may

have under this charter party (such as, but not limited to, claims for freight, deadfreight, demurrage,

shifting expenses or port expenses and/or any charges or expenses under this charter party) unless

claim has been presented to Charterers in writing with all supporting documents within 80 (eighty)

okty (60) days in respect of demurrage claims and 180 (one hundred and eighty) days in

respect of all other claims from completion of discharge under this charter party, in all cases

Owners shall provide supporting documentation duly signed by master and shippers/receivers

respectively or agents as available.

With respect to demurrage claims, Owners shall present any such claims together with documents

sufficient to support the claim which should include, but not be limited to, the following

documentation:

- Commercial invoice

- Laytime statement

- Notice of readiness

- All statement of fact(s) including the terminal statement of facts/time sheet duly signed by master

- All note(s) of protest issued by the vessel

- All note(s) of protest received by the vessel

- Hourly pressure log recorded at each manifold countersigned by terminal, if available

Owners further agree that with respect to any claim or other unresolved dispute arising out of this

charter other than demurrage claim, unless arbitration or litigation, as per this charter is commenced

within 2 (two) years (1) ono year after completion of discharge or the date when discharge should

have completed, such claim or other dispute is waived and all liability which respect thereto is

discharged.

This clause does not apply to claims for damage, loss or short delivery of cargo.

23, Bill of Lading clause:

Bills of Lading to be marked "clean on board" if required by Charterers, discharge port shown in

the Bill of Lading not to constitute a declaration of discharge port and Charterers to have right to

order vessel to any port within terms of the charter party. Charterers will issue l.o.i as per Owner's

P&I wording to indemnify Owners against claims brought by holders of Bills of Lading against

Owners by reason of change of destination.

10

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 17 of 33
Owners agree to instruct the master to discharge the cargo against a 1/3 original Bill of Lading. If

such Bill of Lading has been placed on board the vessel at load port, master shall sign receipt for

same and release it to receivers via appointed agents at discharge port, if no such original Bill of

Lading is available at discharge port, then Owners to permit discharge against Owners" P&I Club

wording and such letter to be signed by Charterers. P&I Club wording is to include clause

cancelling the Letter of Indemnity against presentation either of 1/3 original bill of lading or of 3/3

originals Bills of Lading and Owners undertaking to return 2/3 originals Bills of Lading plus

Owners receipt for 1/3 original Bill of Lading marking such Bill of Lading 'Voyage accomplished

null and void" or after 13 (thirteen) months after completion of discharge, whichever occurs first,

provided that no legal proceedings have been instituted against Owners within such 13 (thirteen)

months.

24. Canal clause - Deleted

25. Compliance clause - Deleted

26. Part cargo claase - Deleted

27. Sampling clause:

Charterers shall be at liberty to order the vessel to call at a port en route or approximately en route

from load port to discharge port(s) for sampling purposes. Charterers shall then pay all expenses

and all port disbursements where applicable (except for eventual ship/crew supplies and expenses)

and all time lost to be paid at demurrage rate pins bankers consumed together with freight

against Owners invoice with supporting documents oount ao uoid laytimo or timo on domurrago,

if vessel is on demurrage. Charterers will make accordingly direct arrangements with their agents

who shall handle ship's call. >,

28. Over age insurance clause - Deleted

29. Bunker survey clause:

Owners allow, if requested, Charterers independent inspectors to survey bunkers on vessel at

loading and discharging port(s), as well at eventual interim port(s) of call, with extra time, if any, to

count as laythne at Charterers risk and expense.

30. Heating clause:

The Owners warrant that the vessel is fully coiled and undertakes to maintain cargo at loaded temp,

but maximum 135 F, throughout voyage and discharge. Ownoro furthor womront that tho woodo! io

oapablo of hoating tho oorgo to ouohtomparatoo ao agrood to in charter fkturo boftvoon Ownoro and

£3iflBtflBflaaJ»MrfiMU*fcpi^^fc£^BfuuLuuMHa^^ttA^^a>fiB^^B£u&a^f^b^uMBuuB£Adaa^^lttau^utt^3a^^a^a^

dioohargQ. oho«ld Chortororo roquiro voogol to heat up no .above they ^,ill roimburoi Q^TOaro US

Dolloro 3000 for onoh 3 dog C of outgo incrcoood tomporaruro.

11

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 18 of 33
If the vessel fails to maintain the loaded temperature, required; Owner shall be responsible for any

resulting delays and all time lost. Further, Charterers shall have the right to order vessel to be

withdrawn from berth and all time and expenses incurred shall be for Owners account

31. Inert gas gauging clause:

If the vessel is equipped with an inert gas system and the cargo compartments are inerted,

Charterers or independent inspectors shall have the right to request the master to depressurize for

the purpose of sampling, gauging, temperature determination and or determination of the quantity

remaining on board after discharge.

Depressurization is to be conducted safely in accordance with the provisions of the international

safety guide for oil tankers and terminals (ISGOTT) as issued by the International Chamber of

Commerce (ICC) and the Oil Companies International Marine Forum (OCIMF). All time

incurred in complying with these requests shall connt as laytime or, if the vessel is on

demurrage, as time on demurrage, and all extra bunkers consumed shall be for Charterers

account

32. P&rCIub clause:

Owners warrant that the vessel is entered with a P&I Club of good standing, member of the

International group of P&I Clubs and will remain so throughout the course of the charter.

33. Speed clause:

Owners warrant that the vessel will perform this voyage at an average speed of 4* 14 knots weather

and safe navigation permitting.

34. Derricks clause:

Vessel is fitted with derricks capable of lifting and supporting at the vessel's port and starboard

manifolds heavy submarine hoses of up to 10 metric tons in weight

35. Stern discharge clause - Deleted

36. Dying clause - Deleted

37. Drug and alcohol clause:

Owners warrant that it has an Exxon drug and alcohol policy or a policy of drug and alcohol abuse

("policy") applicable to the vessel which meets or exceeds the standards in the OCMF guidelines

for the control of drugs and alcohol on board ship. Owner further warrants that this policy will

remain in effect during the term of this charter and that Owners shall exercise due diligence to

ensure that the policy is complied with.

12

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 19 of 33
38. Cargo retention clause:

In the event that any cargo remains on board upon completion of discharge. Charterer shall have the

right to dodttot from freight cliam from Owners an amount equal to the fob port loading value of

such cargo plus freight due with respect thereto, provided that the volume of cargo remaining on

board is liquid and pumpable and reachable by the vessel's fixed equipment as determined by

two independent surveyors, one appointed/paid by Owners and the other by Charterers m

rndapondont-Biirvoyor. any action or lack of action in accordance with mis provision shall be

without prejudice to any rights or obligations of the parties.

If the vessel is ex lay-up, dry dock or ex dry cargo, a value of cargo as well as freight and insurance

for any short outturn cargo quantity (as determined by comparing the Bill of Lading quantity versus

the discharged quantity basis shore tank gauges), shall be deducted from freight to the extent that

such quantity exceeds 0.3 percent of the bill of lading quantity.

it projudk

purpoofflo ot thio

0002 Qortifiod ohiill bo oonnidcrod nn UDDOPtphlo to both Chmtoroc tLn

39, Hess shifting/deballasting clause:

If more than one berth at load or discharge port is used, shifting expenses to be for Charterers

account, except that shifting expenses from anchorage to first berth will not be for Charterers

account.

40, Additional oil pollution insurance clause:

Owners warrant that they have and will maintain throughout the period of this charter the

standard oil pollution insurance cover (currently US Dollars 1 billion) available from their

P&I Club.

jil tfafl ntondnird nil uTigllutioii JTummnoo QOi'or fourrontlir und 1 billion^ utmilnhlo finm thnir RfcT

) and

b) any additional oil pollution inauranco oovor which booomoo available-vici-'tfaoir P&I Club or

through undcnfritcir tiroTidinc firot olunn oopuritv

If requested by Charterers Owners to provide Charterers with evidence of cover.

41. ITF clauses:

Owners warrant that the vessel/crew will remain in compliance with the requirements of ITF. or

equivalent during the currency of this Charter Party. Any delay and/or expense resulting from

non-compliance with this warranty shall be for Owners account and time not to count as laytime or

demurrage.

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 20 of 33
42. ISM (International Safety Management) clause:

Owners warrants that a "safety management system" (sms) in accordance with the ISM code will

be in operation throughout the duration of this charter, it is a condition of this Charter Party that on

and after July 1998 the Owner(s) or"the company" (as defined by the ism code) shall have a valid

"Document of Compliance" (DOC) and the vessel shall have a valid "Safely Management

Certificate" (SMC). Upon request the Owner(s) shall provide a true copy of the relevant doc and

sms to the charter.

43. ISPS clause - Deleted

44. Cleaning:

Owners warrant that vessel's lines/pumps, tanks and pumps shall be in all ways suitable for loading

Charterers cargo to Charterer's inspector's satisfaction, if vessel is found to be unsuitable, she will

be cleaned until approval is obtained from Charterer's inspector. Any delays and coSTS as a result

of vessel arriving at loading port and not being to Charterer's satisfaction shall be for Owners

account If further cleaning is necessary, and if 36 hours after first inspection by Charterer's

inspector the vessel is still unsuitable, Charterer shall have the option to cancel the Charter Party.

Cancellation or failure to cancel shall be without prejudice to any claims for damages Charterer

may have against the Owner.

45r COW operations clause:

Owners warrant that the vessel is equipped with a crude oil washing system in good working order

and that the master, officers and crew are competent to operate said system, if requested by

Charterers vessel shaH perform cow in accordance with the procedures described in the ISC/

OCIMF, in all cargo tanks at discharging port(s) simultaneously with cargo discharging operations,

any additional time spent by reason of cow shall count as used laytime up to maximum 8 hours

Owners warrant that officers and crew are experienced in COW operation. Expenses for COW, if

any, to be for Owner's account.

46. Conoco weather clause:

Except for the specified places, delays in berthing for loading or discharging and any delay after

berthing, which are due to weather conditions shall count as one half laytime or, if any demurrage,

at one half demurrage rate.

47, Commission:

2.50% address commission to Palmyra Shipping & Chartering Ltd on freight, deadfreight and

demurrage all monioo onmod (deductable at source).

48. P&C clause:

Negotiations and fixture to remain strictly private and confidential.

14

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 21 of 33
10

49. Seacock valves:

Seacock valves to be sealed at loading port before commencing loading in presence of Charterers"

representative and seal not be broken until completion of discharge.

50. Usual protective clauses:

Chamber of Shipping War Risks clauses to apply to this charter party, and all Bills of Lading issued

under this Charter Party, shall contain the New Jason Clause, both to blame collision clause and

clause paramount.

51. Extra war risk clause - Deleted

52. Third party arrest clause - Deleted

53. Texaco ITOPF clause:

Owner warrants that it is a member of the International Tanker Owners Pollution Federation (ITOPF) and

that Owner will retain such membership during the entire period of this charter. Owner further warrants

that vessel shall, during the period under this charter, be in foil compliance with the 1969 Civil Liability

Convention (CLC), the 1971 Fund Convention (Fund Convention) and all associated protocols as updated

and amended and that vessel has a valid CLC certificate on board.

54. Lavtime/demnrrage clause:

Notwithstanding the provision of any other paragraph of this clause, or any other clause of this charter

party to the contrary, the following time shall not count as laytime or, if vessel is on demurrage, as time

on demurrage as per charter party agreement

A. All time between early arrival NOR at load port, and 04&Q 00:01 (local time) on the first day of

laydays or actual commencement of loading, whichever first occurs, unless Charterers grants approval

beforehand;

B. All time shifting from anchorage to berth or STS lightering oito;

C. All timo ohifting from STS lightering oito to onohorago or to borfh;

D. All time spent discharging ballast water or slops, unless concurrent with cargo operations;

£. All timo op ont waiting euotonij immigration oloarcmoo, and pratiquo;

F. All time lost due to improper operation of the inert gas system;

f* \1"l +$•**•„. Inf*4-j3-,*** 4-t*^t*r*r*%itl**^*-j:

rBa lft**llr*'t*J- txA**.£si** 4-.S.VH ««.-»!.• t >»•*• ^«. J-,* A *^ _*,-.« «^«*^I-« *.

*^'-^^"« »**•"* «•*»•" «- — • • — »w«^ **~~j -j^^iy"w^wjB^wjpjTMffwgoi^w^xTw v, -v*. ««•» w^onc^n^^xv^

H. All time for bunkering a vessel, taking or discharging ballast water, discharging slops or vesselgenerated wastes, reconfiguring barges in a tow, cleaning vessel compartments, unless concurrent with

cargo operations;

I All timo uftor fortT fivo (^5) minutoc of oomolotion of dioohflrno of OQTCQ. r.'horob'.^flllh.QnoD DTP to bo

j; ---- „..,„„<.„ ,3 —-.„— ~+T, ^x.^~~ ,,*,nnni .-,~7 ,•.„„ /""I. -^t-^^-/-!.;— __ / __ __ :..— J^..:...., A. __ ^.....wt.

J. All time spent for excess berthing, and expenses for such solely for vessel's purpose;

K. All time for delay for non-compliance with law and regulations warranty, and insurance compliance.

Tha prinoiplo of "onco on demurrage, alwajro on domimagB" ohall not bo doomed applioablo to tto ohortw

partjr. only thno which wOUid count an uood laytimo undor tho tormo horoof prio> to tho OHpirotion of

allowed laytiino, ohall oount ao timo on demurrage onoo allowed kj4tmohao o

10 , 15

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 22 of 33
11

(i) From the date of coming into force of the International Code for the Security of Ships

of Port Facilities and the relevant amendments to Chapter XI of SOLAS (ISPS Code) in

relation to the Vessel, the Owners shall procure that both the Vessel and "the Company" (as

defined by the ISPS Code) shall comply with the requirements of the ISPS Code relating to

the Vessel and "the Company". Upon request the Owners shall provide a copy of the relevant

International Ship Security Certificate (or the Interim International Ship Security Certificate)

to the Charterers. The Owners shall provide the Charterers with the full style contact details

of the Company Security Officer (CSO).

(ii) Except YS otherwise provided in this Charter Party, loss, damage, expense or delay,

excluding consequential loss, caused by failure on the part of the Owners or "the Company"

to comply wnji the requirements of the ISPS Code or this Clause shall be for the Owners'

account.

(B) (i) The Charterers shall provide the CSO and the Ship Security Officer (SSOJMaster with

their full style contact details and any other information the Owners require to comply with

the ISPS Code.

(ii) Except as otherwW provided in this Charter Party, loss, damage, expense, excluding

consequential loss, caused by failure on the part of the Charterers to comply with this Clause

shall be for the Charterers' account and any delay caused by such failure shall be

compensated at the demurrage rate.

(C) Provided that the delaV is not caused by the Owners' failure to comply with their

obligations under the ISPS CMe, the following shall apply:

(i) Notwithstanding anything to\the contrary provided in this Charter Party, the Vessel shall

be entitled to tender Notice of\Readiness even if not cleared due to applicable security

regulations or measures imposed \y a port facility or any relevant authority under the ISPS

Code.

(ii) Any delay resulting from measure^imposed by a port facility or by any relevant authority

under the ISPS Code shall count as laVime or time on demurrage if the Vessel is on laytime

or demurrage. If the delay occurs berare laytime has started or after laytime or time on

demurrage has ceased to count, it shall D£ compensated by the Charterers at the demurrage

rate.

(D) Notwithstanding anything to the contrarV provided in this Charter Party, any additional

costs or expenses whatsoever solely arisingXout of or related to security regulations or

measures required by the port facility or any relevant authority in accordance with the ISPS

Code including, but not limited to, security gnaras, launch services, tug escorts, port security

fees or taxes and inspections, shall be for theVharterers' account, unless such costs or

expenses result solely from the Owners' negligence All measures required by the Owners to

comply with the Ship Security Plan shall be for the owners' account.

(E) If either party makes any payment which is for theWher party's account according to this

Clause, the other party sfaall-indomnify the paying party.

II

16

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 23 of 33
55. ISPS/MTSA CLAUSE FOR VOYAGE CHARTER PARTIES 2005

(a)(l) The Owners shall comply with the requirements of the International Code for the Security of Ships and of Port

Facilities and the relevant amendments to Chapter XI of SOLAS (ISPS Code) relating to the Vessel and "the company"

(as defined by the ISPS Code). If trading to or from the United States or passing through United States waters, the

Owners shall also comply with the requirements of the US Maritime Transportation Security Act 2002 (MTSA) relating to

the Vessel and the "Owner" (as defined by the MTSA).

(II) Upon request the Owners shall provide the Charterers with a copy of die relevant International Ship Security

Certificate (or the Interim International Ship Security Certificate) and the full style contact details of the Company

Security Officer (CSO).

(ill) Loss, damages, expense or delay (excluding consequential loss, damages, expense or delay) caused by failure on

the part of the Owners or the Company7"0wner" to comply with the requirements of the ISPS Code/MTSA or ttiis Cause

shall be for the Owners' account, except as otherwise provided In this Charter Party.

(b)(t) The Charterers shall provide the Owners and the Master with their full style contact details and, upon request, any

other information the Owners require to comply with the ISPS Code/MTSA.

(fl) Loss, damages or expense (excluding consequential loss, damages or expense) caused by (allure on the part of the

Charterers to comply with this Clause shall be for the Charterers' account, except as otherwise provided in this Charter

Party, and any delay caused by such failure shall count as laytim? or time on demurrage.

(c) Provided that the delay is not caused fay the Owners' failure to comply with their obligations under the ISPS

Code/MTSA, the following shall apply:

(i) Notwithstanding anything to the contrary provided in this Charter Party, the Vessel shall be entitled to tender Notice

of Readiness even if not cleared due to applicable security regulations or measures Imposed by a port facility or any

relevant authority under the ISPS Code/MTSA.

(ii) Any delay resulting from measures imposed by a port facility or by any relevant authority under the ISPS Code/MTSA

shall count as laytlme or time on demurrage, unless such measures result solely from the negligence of the Owners,

Master or crew or the previous trading of the Vessel, the nationality of the crew or the identity of the Owners' managers.

(d) Notwithstanding anything to the contrary provided in this Charter Party, any costs or expenses whatsoever solely

arising out of or related to security regulations or measures required by the port facility or any relevant authority in

accordance with the ISPS Code/MTSA Including, but not limited to, security guards, launch services, vessel escorts,

security fees or taxes and inspections, shall be for the Charterers' account, unless such costs or expenses result solely

from the negligence of the Owners, Master or crew or the previous trading of the Vessel, the nationality of the crew or

the identity of the Owners' managers. All measures required by the Owners to comply with the Ship Security Plan shall be

for the Owners' account

(e) If either party makes any payment which Is for the other party's account according to this Clause, the other party

shall indemnify the paying party.

17

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 24 of 33
12

ADDITIONAL CLAUSES

or engagement

1. To the best of Owners knowledge (but always without guarantee omissions accepted) the

vessel is acceptable to: BHP/BP/Chevron/Conocophillips/ExxonMobfl/Petronas/Shell/TotaL

on Basis

2. Vessel to re-measure to 71,500 metric tons ea-deadweighqo'raft 11.00 metres-basis api 14.4,

sg 0.970 and temperature 100 Fahrenheit, maximum intake fuel oil: about 70125 metric tons

or about 455747 barrels at 60 degrees Fahrenheit

3. If STS, all port costs including agency to be for Charterers account and to be settled

directly by them.

4. Freight always payable basis minimum 80,000 metric tons irrespective of api's/splits/

temperatures of the cargo loaded and/or the quantity of cargo loaded to any draft restrictions.

5. If vessel loads/discharges at Ancona, Castellon, Falconara, Fiumicino, Gaeta, Gela, Genoa,

Gulf of Iskenderun, La Nouvelle, La Spezia, Ravenna, Savona, Tarragona, Trieste or Venice

or-by at/by STS/Iightering or at any SBM/SPM/MBM/FSO/FPSO/sealme/open sea berth/

offshore facility, location, platform, structure or terminal, time to count in fall weather and/or

sea conditions permitting or not Any shifting, unberthing(s) and/or reberthing(s) due to

weather and/or sea conditions to be for Charterers' account and to be settled directly by them,

and all time so spent to count in full.

6. Any additional war risk premium for hull and machinery, LOH and crew (as invoiced by

Owners1 underwriters) as at date of Charter Party and payable as a result of vessel trading

into war and/or war-like territories, to be for Charterers account, and same to be reimbursed

promptly after receipt by Charterers of supporting evidence from Owners underwriters. The

vessel's insured value for war risks is US Dollars 90,000,000.00

7. Any charges and/or dues and/or levies and/or taxes on cargo and/or freight (howsoever

based and/or calculated) to be for Charterers account and to be settled directly by them.

8. Escort / fire-fighting / pollution-guard / stand-by launches / tugs / workboats, or

equivalent, and any related charges to be for Charterers account and to be settled directly by

them.

9. Any additional insurance by virtue of the vessel's age and / or class and / or flag and / or

ownership to be for charterers' account and to be settled directly by them.

18

12

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 25 of 33
13

10. Discharge ports to be in geographical rotation.

H. Tankpac Worldscale Clause

In situations where certain expenses have not been accounted for in the Worldscale flat rate,

and Worldscale page d-8 calls for specific allocation in the contract, such expenses shall be for

Charterers account

12. As Charterers require the vessel to present at the first / sole loadport with her cargo tanks

water-washed and ready to load a cargo of fuel oil, Charterers agree to pay for all costs of

water-washing and other cleaning including but not limited to bunkers consumed, disposal of

tank-washings, port charges / costs / expenses / fees of whatsoever nature incurred in respect

of tank-washings and deviation (if any), all to be paid together with freight against Owners

invoice with supporting documents.

19

13

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 26 of 33
14

QUESTIONNAIRE 88 (Version 2>

INTERTANKO'S STANDARD TANKER VOYAGE CHARTERING QUESTIONNAIRE 1988 (Version 2)

(Metric system to be applied, HVPQ reference specified where applicable)

GENERAL INFORMATION

Date Updated:

Vessel's name:

1MO number

Vessel's previous name(s):

Flag:

Port of Registry:

Call sign:

Inmarsat phone number

Fax number

Email address:

Type of vessel:

Type of hull:

•OKLAHOMA"

9321964

N/A

Bahamas

Nassau

C6VR8

764647450 / 1

764647452

C6VR8@globeemail.com

Crude Oil Tanker

Double Hull

HVPQ I

1.2

1.3

1.4-1.7

1.8

1.9

1.11

1.12

1.13

1.16

1.17

1.19

OWNERSHIP & OPERATION

Registered owner - Full Style:

Technical operator - Full Style:

Commercial operator - Full Style:

Disponent owner / Bareboat charterer- Full Style:

Number of vessels In Disponent owner's fleet::

Cygnus Transport Ltd

80 Broad Street

Monrovia

Liberia

Dorian (Hellas) S.A.

102-104 Kolokotroni St

Piraeus 185 35

Greece

Dorian (Hellas) S A

102-1 04 Kotokotron! St

Piraeus 185 35

Greece

N/A

N/A

1.20

1.22

1.23

BUILDER

Where Built :

Date Delivered:

SHIME's Yokosuka

Shipyard, Japan

15.09.06

1.26

1.31

CLASSIFICATION

Vessel's classification society:

Class notation:

If Classification society changed, name of previous society?

If Classification society changedt date of change?

Last dry-dock:

Last special survey:

Latest CAP Rating (if applicable)

Last annual survey:

Does the vessel have a statement of compliance issued under

the provisions of the Condition Assessment Scheme (CAS)?

Lloyd's Register

-HOOA1 Double Hull OH

Tanker, ESP, ShipRight

(SDA, FDA, CM), LI,

-HMC, UMS, IGS

N/A

N/A

N/A

N/A

N/A

N/A

N/A

1.34

1.35

1.36

1.37

1.38

1.41

1.44

1.45

14

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 27 of 33
15

DIMENSIONS

LQA (Length Over All):

Ertreme breadth:

KTM (Keel to Masthead):

BCM (Bow to Center Manifold):

Lightship parallel body length:

Normal ballast parallel body length:

Parallel body length at Summer DWT:

237.71 Metres

42.00 Metres

49.31 Metres

116.53 Metres

73.01 Metres

105.27 Metres

121.17 Metres

1.49

1.51

1.54

1.57.1

1.57.3

1.57.6

1.57.9

TONNAGES

Net Tonnage:

Gross Tonnage:

Suez Net Tonnage:

Panama Net Tonnage:

32,082

56,172

54,083.50

N/A

1.59

1.60

1.61

1.62

LOADLINE INFORMATION *£$ ^

Summer: tf-46' i*«s

Winter: «-7?« w-sfis

Tropical: wss is.i87

Lightship: i8.»2s TM

Normal Ballast Condition: 14.995 6js

Deadweight C Displacement (

105.46! 121-«1

MKL54' 118.71!

108.06! 124-23-

0 16.172

31.619 47.791

1.63

1.64

1.65

1.66

1.67

TPC on summer draft:

Does vessel have Multiple SDWT?

If yes what is the maximum assigned Deadweight?

Air draft (sea level to top of mast/highest point) in normal SET condition?

89.24

Yes

99,995 Tonnes

42.50 Metres

1.70

1.72

1.73

1.74

RECENT OPERATIONAL HISTORY

Has vessel been involved in any collision, grounding or

pollution incident the past 12 months, full description:

No 1.77-1.79

CERTIFICATION

Owners warrant following certificates to be

valid throughout the Charter Party period:

SOLAS Safety Equipment:

SOLAS Safety Radio:

SOLAS Safety Construction:

Load line:

(OPPC:

Safety Management (ISM):

USCG COC:

CLC:

US COFR:

Certificate of Fitness (Gas/Chemicals):

Certificate of Class:

ISPS ISSC:

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

N/A

Yes

Yes

2.2

2.3

2A

2.5

2.6

2.8

2.11

2.13

2.15

2.16 & 2.17

DOCUMENTATION

Does the vessel have the following documents on board?

International Safety Guide for Oil Tankers & Terminals (ISGOTT):

OCtMF/ICS Ship to Ship Transfer Guide (Petroleum):

Is the vessel entered with ITOPF?

Yes

Yes

Yes ~~l

2.28

2.31

15 21

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 28 of 33
16

CREW MANAGEMENT

Nationality of Master

Nationality of Officers:

Nationality of Crew:

If Officers/Crew employed by a Manning Agency - Full Style:

What is the common workingjanguage onboard?

Do key officers understand English?

In case of Flag Of Convenience (FOG), is the ITF Special Agreement on

board?

Croatian

Croatian / Filipino

Filipino

Senior Officers:

1}Pasat Shipping

Services Limited

Obaia Hrvatske

Momarice 1 PO BOX 142

22000 Sibenik-Croafia

Tel: -1-385 22213750

Fax: +385 22213751

Junior Officers / Crew:

2) Magsaysay Maritime

Co rpo ration/Mag saysay

Bldg.,520T.MKalawSt

Ermita (1000), Manila

Philippines

Tel: +63 25269674

Fax +63 23026160

English

Yes

Yes

3.1

3.2

3.1 & 3.2

3.1

STRUCTURAL CONDITION

Are cargo tanks coated?

If Yes, specify type of coating:

If cargo tanks are coated, specify to what extent

Are slop tanks coated?

If slop tanks are coated, specify to what extent:

In part

Modified epoxy paint

Tank Top Area and 2.0

Metres above plus Under

Deck Area and 2.0

Metres below

Yes

In full

7.1

7.1.1

7.1.3

CARGO & BALLAST SYSTEMS

If double hull, is vessel fitted with centreline bulkhead in all cargo tanks?

Groups /Tank Capacities

Total cubic capacity 98% ex slop tank:

Slop tank(s) capaa'tyj)8%:

SET or CBT?

if SBT, what percentage of SDWT can vessel maintain with SBT only?

If SBT, does vessel meet the requirements of MARPOL Reg 13(2)?

Number of natural segregations with double valve:

Yes

1. P&S 16,1 61. 6

2. P&S 20,802.4

3. P&S 20,861 .2

4. P&S 17,384.4

5- P&S 20,861 .2

6. P&S 19,501.2

1 15,572.00 M3

4.312.00 M3

SBT

37 per cent

Yes

3

8.2

8.3

8.4 & 8.6

8.5 & 8.7

8.14.2

8.14.3

8.15

CARGO PUMPS

Type:

Number

Capacity:

Centrifugal

3

2.500 (each) Cu. M/Hour

8.18-8.25

8.18-8.25

8.18-8.25

GAUGING AND SAMPLING

Can tank innage/ullage be read from the CCR?

Can vessel operate underdosed conditions in accordance with ISGOTT

7.6.3?

Type of tank gauginasystem {radar / floating / other)

Are high level alarms fitted and operational In carpo tanks?

Yes

Yes

Floating

Yes

8.48

8.51

8.51.1

8.54

16 22

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 29 of 33
17

VAPOUR EMISSION CONTROL AND VENTING

Is a vapour return system fitted?

State what type of venting system is fitted:

Max loading rate per midships connection for homogenous cargo?

Yes

Common vent system

7500 Cu. M/Hour

8.65

8.67

8.79

CARGO MANIFOLDS

Does vessel comply with the latest edition of the OCfMF 'Recommendations

for Oil Tanker Manifolds and Associated Equipment1?

What is the number of cargo connections per side?

What is the size of cargo connections?

What is the material of the manifold?

Distance between cargo manifold centres:

Distance ships rail to manifold:

Distance main deck to centre of manifold:

Height of manifold connections above the wateriine

at loaded (Summer Deadweight) condition?

Height of manifold connections above the wateriine In normal ballast?

Is vessel fitted with a stem manifold?

Number/ size reducers:

Yes

3

0.450 Metres

Steel

2.500 Metres

4.522 Metres

1.900 Metres

8.35 Metres

16.90 Metres

No

3/400 MM to 300 MM

3/400 MM to 250 MM

3/400 MM to 200 MM

8.80

8.83

8.84

8.86

8.93

8.95

8.97

8.101

8.102

8.104

8.106-8.110

CARGO HEATING

Type of cargo heating system?

Material of heating system?

Max load temp:

Max temp maintain:

Heating coils

AluBrass

70 deg Celsius

40 deg Celsius

8.120

8.128

IG8 & COW

is an Inert Gas System (IGS) fitted?

Is IGS supplied by flue gas, inert gas (IG) generator and/or nitrogen?

Is a Crude Oil Washing (COW) installation fitted?

Yes

Flue gas

Yes

9.1

9.3

9.17

MOORING ARRANGEMENTS

Mumber/ length / diameter./ breaking strength of wires:

Focsle:

Main deck fwd:

Main deck aft

Poop:

Number / length / diameter / breaking strength of ropes:

Focsle:

Main deck fwd:

Main deck aft

Poop:

Focsle:

Main deck fwd:

Main deck aft

Poop:

On Drums

4/220/38 MM/93

Tonnes

4/220/38 MM/93

Tonnes

2/220/38MM/93

Tonnes

6/220/38 MM/93

Tonnes

On Drums

Other Lines

2/220/72 MM/90

Tonnes

2/220/72 MM/90

Tonnes

2/220/72 MM/90

Tonnes

2/220/72 MM/90

Tonnes

10.2

10.3

10.4

10.5

10.11

10.12

10.13

10.14

10.15

10.16

10.17

10.18

17 23

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 30 of 33
18

Number and brake holding power of winches:

Focsle:

Main deck fwd:

Main deck aft

Poop:

How many dosed chocks and/or fairteads of enclosed type are fitted on:

Focsle:

Main deck fwd:

Main deck aft

Poop:

2/470KN

2/470KN

1/470 KN

3/470KN

12

8

8

12

10.22

10.23

10.24

10.25

SINGLE POINT MOORING (SPM) EQUIPMENT

Fairiead size:

Does vessel comply with the latest edition of OCIMF 'Recommendations for

Equipment Employed in the Mooring of Vessels at Single Point Moorings

(SPM)7

Is vessel fitted with chain stopper(s)?

Number:

Type:

SWL

Max diameter chain size:

600 MM x 450 MM

Yes

Yes

2

Tongue Type

200 Tonnes

76 MM

10.48

10.60

10.61

10.61.1

10.61.2

10.61.3

10.62

LIFTING EQUIPMENT

Derrickfs) - Number / SWL:

Crane(s)- Number /SWL:

N/A

1 x 15 Tonnes

10.75

10.76

ENGINE ROOM

What type of fuel is used for main propulsion?

What type of fuel is used in the generating plant?

.F.O (380 CST)

I.F.O (380 CST)

12.5

12.14

MSCELLANOUS

P & 1 Club name:

Last three cargoes (Last / 2"° Last / 3ro Last):

Last three charterers (Last / 2TM Last / 3TM Last):

Last three voyages (Last / 2TM Last / 3TM Last):

Date of last SIRE Inspection:

Date of last CDI Inspection:

Current CHI Major Company Acceptances (TTBOOK but AWOGOE):

Date and place of last Port State Control:

Anv outstanding, deficiencies as reported by any Port State Control?

If yes, provide details:

United Kingdom Mutual

Steam Ship Assurance

Association (Bermuda)

Limited

N/A

N/A

BHP

BP

Chevron

Conoco Phillips

ExxonMobil

Petronas

Shell

Total

N/A

No

18 24

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 31 of 33
19

\

FOR USA CALLS ONLY

Qualified individual (Ql) - Full Style:

Oil Spill Response Organization (OSRO) - Full Style:

Has owner, manager, or operator signed the Sea Carrier Initiative

agreement with US customs concerning drug smuggling?

O'Brien's OH Pollution

Service, Inc

Tel: +1-985-781-0804

Fax: +1-985-781-0580

E-mail: oopsusa(©ooosusa.com

National Response

Corporation

Tel: +1-631-224-9141

+1-800-899-4672

Fax: +1-631-224-9086

E-mail: iocdoi8inrcc.com

Yes

E+OE Revised: July 2004 (INTERTANKQ.com / Q88.com)

19

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 32 of 33
'ORIGINAL

London, 16th March 2007

"OKLAHOMA*

CHARTER PARTY DATED 1ST MARCH 2007

ADDENDUM NUMBER ONE

It is this day mutually agreed between Cygnus Transport Ltd., Monrovia (Owner) and Palmyra

Shipping and Chartering Ltd (Charterers) to:

insert "and Gibraltar" in the included ports in the discharge range.

All other terms, conditions, exceptions and exemptions to remain unaltered and in full force and

effect

OWNERS: CHARTERERS:

Cygnus Transport Ltd., Monrovia . Palmyra Shipping and Chartering Ltd

Bar, Switzerland

26

Case 1:07-cv-05799-MGC Document 1 Filed 06/19/2007 Page 33 of 33