Document:

Torch Offshore, Inc.

 

	 	 	 	 	 
	Copyright, published by
The Baltic and International Maritime Council
(BIMCO), Copenhagen
September 1989	 	
Adopted by
International Support Vessel Owners’
Association (ISOA), London
	 	Issued by
The Documentary Committee of
The Baltic and International Maritime Council (BIMCO), Copenhagen
(First Edition published 1975)
REVISED 1989

	 	 	 
	UNIFORM TIME CHARTER PARTY

FOR OFFSHORE SERVICE VESSELS

CODE NAME: “SUPPLYTIME 89”	 	

	 	 	 	 	 
	1. Place and date	 	 	 	 
	 	 	 	 	 
	SALFORD ENGLAND, 31st MAY 2002	 	 	 	PART I
	 	 	 	 	 
	2. Owners/Place of business (full style, address and telex/telefax no.) (Cl. 1(a))	 	
3.
	 	Charterers/Place of business (full style, address and telex/telefax no.) (Cl. 1(a))
	 	 	 	 	 
	CABLE SHIPPING INC.

80 BROAD STREET

MONROVIA

LIBERIA

OR THEIR NOMINEES
	 	 	 	TORCH OFFSHORE L.L.C.

401 WHITNEY AVENUE, SUITE 400

GRETNA

LOUISIANA 70056

USA

	 	 	 	 
	4. Vessel’s name (Cl. 1(a))		 5. Date of delivery (Cl. 2(a))	
 6. Cancelling date (Cl. 2(a) and (c))
	G. MURRAY TO BE RENAMED MIDNIGHT HUNTER	 	AUGUST 10th, 2002
(see also
Clauses 2 (b) and 52)	
SEPTEMBER 10th, 2002

	 	 	 	 	 	 	 	 	 
	7.	Port or place of delivery (Cl. 2(a))	 	 		 	8.	Port or place of redelivery/notice of redelivery (Cl. 2(d))

	 	 	 
	APS NEW ORLEANS PORT OR ANY OTHER LOUISIANA PORT
DESIGNATED BY CHARTERER, AFTER SATISFACTORY US COAST
GUARD INSPECTION (INCLUDING SAFETY AND ISM). CHARTERERES
TO ARRANGE INSPECTION ACCORDINGLY. IN CASE OF NON COMPLIANCE
TIME TO COUNT ONLY AFTER A SATISFACTORY INSPECTION	 	

(i) Port or place of redelivery

DROPPING OUTWARD PILOT IN EUROPEAN OR US GULF PORT IN

CHARTERERS OPTION

	 	 	

	 	 	
(ii) Number of days’ notice of redelivery

	 	 	
30 DAYS APPROX / 15-10-5-3-2-1 DEFINITE DAYS

	 	 	 
	9. Period of hire (Cl. 1(a))	 	
10. Extension of period of hire (optional) (Cl. 1(b))

	 	 	 
	1095 DAYS FIRM, CONTINUOUS
FROM THE END OF THE RIG UP PERIOD IN CLAUSE 53	 	

(i) Period of extension

N/A

	 	 	

	 	 	
(ii) Advance notice for declaration of option (days)

N/A

	 	 	 
	11. Automatic extension period to complete voyage or well (Cl. 1(c))

	 	
12. Mobilisation charge (lump sum and when due) (Cl. 2(b) (i))

	
	 	

	(i) Voyage or well (state which)

AS REQUIRED FOR WORK IN PROGRESS

	 	
(i) Lump sum

US$275.000

	
	 	

	(ii) Maximum extension period (state number of days)

30 DAYS	 	
(ii) When due

ON ARRIVAL NEW ORLEANS OR ANY OTHER LOUISIANA PORT

DESIGNATED BY THE CHARTERER

	 	 	

	 	 	
13. Port or place of mobilisation (Cl. 2(b) (i))

GDYNIA, POLAND

	 	 	 	 	 
	14. Early termination of charter (state amount of hire payable) (Cl. 26(a))	 	
15. Number of days’ notice of early
termination (Cl. 26(a))
	 	16. Demobilisation charge (lump sum)
(Cl. 2(e) and Cl. 26(a))
	 	 	 	 	 
	SEE CLAUSE 56 — CANCELLATION	 	
SEE CLAUSE 56
	 	N/A

	 	 	 
	17. Area of operation (Cl. 5(a))

	 	
18. Employment of vessel restricted to (state nature of service(s)) (Cl. 5(a))

	WORLD WIDE WITHIN INSTITUTE WARRANTY LIMITS	 	
AS SUPPORT FOR PIPE LAYING / ROV SUPPORT / LIGHT CONSTRUCTION / DIVING OPERATIONS AS

DIRECTED BY THE CHARTERERS BUT ALWAYS WITHIN THE SAFE CAPABILITIES
AND CAPACITIES OF THE VESSEL

(continued)

 

 

	 	 	 	 	 
	(continued)	 	
“SUPPLYTIME 89” Uniform Time Charter Party for Offshore Service Vessels
	 	PART I

	 	 	 	 	 
	19. Charter hire (state rate and currency) (Cl. 10(a) and (d))	 	
20. Extension hire (if agreed, state rate) (Cl. 10(b))	 	 
	 	 	 	 	 
	US DOLLARS 18.500 PER DAY	 	
N/A	 	 
	 	 	 	 	 
	(see also Clause 53)	 	 	 	 
	21. Invoicing for hire and other payments (Cl. 10(d))

(i) state whether to be issued in advance of arrears	 	
22. Payments (state mode and place of payment; also state beneficiary
and bank account (CI. 10(e))

TO BE ADVISED LATER

	 	 	 	 	 
	IN ARREARS, ON THE LAST DAY OF EACH CALENDAR MONTH

	 	 	 	 
	
	 	 	 	 
	(ii) state to whom to be issued if addressee other than stated in Box 2

N/A

	 	 	 	 
	
	 	 	 	 
	(iii) state to whom to be issued if addressee other than stated in Box 3

N/A	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	23. Payment of hire, bunker invoices and disbursements for Charterers’ account

(state maximum number of days) (Cl. 10(e))

30 DAYS	 	 	
24.
	 	 	Interest rate payable (Cl. 10(e))

8 PER CENT
	 	 	25.
	 	 	Maximum audit period (Cl. 10(f))

4 MONTHS

	 	 	 	 	 
	26. Meals (state rate
agreed)

(Cl.5(c) (i))

	 	
27. Accommodation(state rate agreed)

(Cl. 5(c) (i))
	 	28. Mutual Waiver of Recourse (optional, state whether applicable) (Cl. 12(f))
	 	 	 	 	 
	N/A (see Clause 55)	 	
N/A (see Clause 55)
	 	N/A

	 	 	 
	29. Sublet (state amount of daily increment to charter hire) (Cl. 17(b))	 	
30. War (state name of countries) (Cl. 19(e))

	 	 	 
	TO BE NEGOTIATED ON BASIS OF DOCUMENT COST INCREMENT TO OWNERS	 	
NATO COUNTRIES
	 	 	 
	31. General average (place of settlement — only to be filled in if other than London)
(Cl. 21)	 	
32. Breakdown (state period) (Cl. 26(b) (v))

	 	 	 
	LONDON (see Clause 31)	 	
30 DAYS
	 	 	 
	33. Law and arbitration (state Cl. 31(a) or 31(b) or 31(c), as agreed; if Cl. 31(c)
agreed also state place of arbitration) (Cl. 31)	 	
34. Numbers of additional clauses covering special provisions, if agreed

	 	 	 
	ENGLISH LAW, ARBITRATION IN LONDON	 	
37/ 56 INCLUSIVE. ANNEXES A, B, C, D AND E ENCLOSED FORM AN INTEGRAL
PART OF THIS CHARTER PARTY.
	 	 	 
	35. Names and addresses for notices and other communications required to be
given by the Owners (Cl. 28)	 	
36. Names and addresses for notices and other communications required to be

given by the Charterers (Cl. 28)
	 	 	 
	SEE CLAUSE 50	 	
SEE CLAUSE 50

It is mutually agreed that this Contract shall be performed subject to
the conditions contained in the Charter consisting of PART I, including
additional clauses if any agreed and stated in Box 34,
and PART II as well as ANNEX “A” and ANNEX “B” as annexed to this
Charter. In the event of a conflict of conditions, the provisions of PART
I shall prevail over those of PART II and ANNEX “A” and
ANNEX “B” to the extent of such conflict but no further. ANNEX “C” as
annexed to this Charter is optional and shall only apply if expressly
agreed and stated in Box 28.

	 	 	 
	Signature (Owners)	 	
Signature (Charterers)
	/s/ CABLE SHIPPING INC.	 	
/s/ LYLE G. STOCKSTILL

Printed and sold by Fr. G. Knudtzon Ltd., 55 Toldbodgade, DK-1253 Copenhagen K, Telefax +45 33 93 11 84

by authority of the Baltic and International Maritime Conference (BIMCO), Copenhagen.

 

PART II

“SUPPLYTIME 89” Uniform Time Charter Party for Offshore Service Vessels

1.     Period

(a)  The Owners stated in Box 2 let and the Charterers stated in Box 3 hire the
Vessel named in Box 4, as specified in ANNEX “A” (hereinafter referred to as
“the Vessel”), for the period as stated in Box 9 from the time the Vessel is
delivered to the Charterers.

(b)  Subject to Clause 10(b), the Charterers have the option to extend the
Charter Period in direct continuation for the period stated in Box 10(i), but
such an option must be declared in accordance with Box 10(ii).

(c)  The Charter Period shall automatically be extended for the time required to
complete the voyage or well (whichever is stated in Box 11(i)) in progress,
such time not to exceed the period stated in Box 11(ii).

2.     Delivery and Redelivery

(a)  Delivery -Subject to sub-clause (b) of this Clause the Vessel shall be
delivered by the Owners free of cargo and with clean tanks at any time
between the date stated in Box 5 and the date stated in Box 6 at the port or
place stated in Box 7 where the Vessel can safely lie always afloat.(see also
clause 52)

(b)  Mobilisation. -(i) The Charterers shall pay a lump sum as stated in Box 12
without discount by way of mobilisation charge in consideration of the
Owners giving delivery at the port or place stated in Box 7. The mobilisation
charge shall not be affected by any change in the port or place of mobilisation
from that stated in Box 13.

(ii) Should the Owners agree to the Vessel loading and transporting cargo
And/or undertaking any other service for the Charterers en route to the port of
Delivery or from the port of redelivery, then all terms and conditions of this
Charter Party shall apply to such loading and transporting and/or other
Service exactly as if performed during the Charter Period excepting only that
Any lump sum freight agreed in respect thereof shall be payable on shipment
Or commencement of the service as the case may be, the Vessel and/or goods
Lost or not lost. 

(c)  Cancelling. -If the Vessel is not delivered by midnight local time on the
Cancelling date stated in Box 6, the Charterers shall be entitled to cancel this
Charter Party. However, if despite the exercise of due diligence by the
Owners, the Owners will be unable to deliver the Vessel by the cancelling
date, they may give notice in writing to the Charterers at any time prior to the
delivery date as stated in Box 5, and shall state in such notice the date by
which they will be able to deliver the Vessel. The Charterers may within 24
hours of receipt of such notice give notice in writing to the Owners cancelling
this Charter Party. If the Charterers do not give such notice, then the later date
specified in the Owners’ notice shall be substituted for the cancelling date for
all the purposes of this Charter Party. In the event the Charterers cancel the
Charter Party, it shall terminate on terms that neither party shall be liable to
the other for any losses incurred by reason of the non-delivery of the Vessel
or the cancellation of the Charter Party.

(d)  Redelivery. -The Vessel shall be redelivered on the expiration or earlier
termination of this Charter Party free of cargo and Charterers equipment and with
clean tanks at the port or place as stated in Box 8(i) or such other port or place
as may be mutually agreed. The Charterers shall give not less than the number of days notice in
writing of their intention to redeliver the Vessel, as stated in Box 8(ii).

(e) Demobilisation. -The Charterers shall pay a lump sum without discount in
the amount as stated in Box16 by way of demobilisation charge which amount
shall be paid on the expiration or on earlier termination of this Charter Party.

 

 

3.     Condition of Vessel

(a)  The Owners undertake that at the date of delivery under this Charter Party
the Vessel shall be of the description and classification as specified in ANNEX
“A”, attached hereto, and undertake to so maintain the Vessel during the
Period of service under this Charter Party.

(b)  The Owners shall before and at the date of delivery of the Vessel and
Throughout the Charter Period exercise due diligence to make and maintain
the Vessel tight, staunch, strong in good order and condition and, without
Prejudice to the generality of the foregoing, in every way fit to operate
Effectively at all times for the services as stated in Clause 5.

4.     Survey

The Owners shall appoint either the ship’s Captain or other employee and 62a
the Charterers shall jointly appoint an independent surveyor or other
employee
for the purpose of determining and agreeing in writing the condition of the
Vessel, any anchor handling and towing equipment specified in
Section 5 of
ANNEX “A”, and the quality and quantity of fuel, lubricants and water at the
time of delivery and redelivery hereunder. The Owners and the Charterers
shall jointly share the time and expense of such surveys except for the independent 68
Surveyor whose expenses will shall be for Charterers’ account.

5.     Employment and Area of Operation 

(a)  The Vessel shall be employed in offshore activities which are lawful in
accordance with the law of the place of the Vessel’s flag and/or registration
and of the place of operation. Such activities shall be restricted to the
service(s) as stated in Box 18, and to voyages between any good and safe port
or place and any place or offshore unit where the Vessel can safely lie always
afloat within the Area of Operation as stated in Box 17 which shall always be
within Institute Warranty Limits and which shall in no circumstances be
exceeded without prior agreement and adjustment of the Hire and in
accordance with such other terms as appropriate to be agreed; provided
always that the Charterers do not warrant the safety of any such port or place
or offshore unit but shall exercise due diligence in issuing their orders to the
Vessel as if the Vessel were their own property and having regard to her
capabilities and the nature of her employment. Unless otherwise agreed, the
Vessel shall not be employed as a diving platform.

(b)  Relevant permission and licences from responsible authorities for the
Vessel to enter, work in and leave the Area of Operation shall be obtained by
the Charterers and the Owners shall assist, if necessary, in every way
possible to secure such permission and licences.

(c)  The Vessel’s Space. -The whole reach and burden and decks of the
Vessel shall throughout the Charter Period be at the Charterers’ disposal
reserving proper and sufficient space for the Vessel’s Master, Officers, Crew,
tackle, apparel, furniture, provisions and stores. The Charterers shall be
entitled to carry, so far as space is available and for their purposes in
connection with their operations.

	 	(i)	 	Persons other than crew members, other than fare paying, and for such
purposes to make use of the Vessel’s available accommodation not
being used on the voyage by the Vessel’s Crew. The Owners shall
provide suitable provisions and requisites for such persons for which the
Charterers shall pay at the rate as stated in Box 26 per meal and at the
rate as stated in Box 27 per day for the provision of bedding and services
for persons using berth accommodation. (see also clause 55)
	 
	 	(ii)	 	Lawful cargo whether carried on or under deck.
	 
	 	(iii)	 	Explosives and dangerous cargo, whether in bulk or packaged, provided
proper notification has been given and such cargo is marked and
packed in accordance with the national regulations of the Vessel and/or
the International Maritime Dangerous Goods Code and/or other
pertinent regulations. Failing such proper notification, marking or
packing the Charterers shall indemnify the Owners in respect of any loss,
damage or liability whatsoever and howsoever arising therefrom. The

 

 

	 	 	 	Charterers accept responsibility for any additional expenses (including
reinstatement expenses) incurred by the Owners in relation to the
carriage of explosives and dangerous cargo.
	 
	 	(iv)	 	Hazardous and noxious substances, subject to Clause 12(g), proper
notification and any pertinent regulations.

(d)  Laying-up of Vessel. -The Charterers shall have the option of laying up the
Vessel at an agreed safe port or place for all or any portion of the Charter
Period in which case the Hire hereunder shall continue to be paid but, if the
period of such lay-up exceeds 30 consecutive days there shall be credited
against such Hire the amount which the Owners shall reasonably have saved
by way of reduction in expenses and overheads as a result of the lay-up of the
Vessel.

6.     Master and Crew

(a)  (i) The Master shall carry out his duties promptly and the Vessel shall
render all reasonable services within her capabilities by day and by night and
at such times and on such schedules as the Charterers may reasonably
require without any obligations of the Charterers to pay to the Owners or the
Master, Officers or the Crew of the Vessel any excess or overtime payments.
The Charterers shall furnish the Master with all instructions and sailing
directions and the Master and Engineer shall keep full and correct logs
accessible to the Charterers or their agents.

(ii)  The Master shall sign cargo documents as and in the form presented, the
same, however, not to be Bills of Lading, but receipts which shall be non-
negotiable documents and shall be marked as such. The Charterers shall
indemnify the Owners against all consequences and liabilities arising from
the Master, Officers or agents signing, under the direction of the Charterers,
those cargo documents or other documents inconsistent with this Charter
Party or from any irregularity in the papers supplied by the Charterers or their
agents.

(b)  The Vessel’s Crew if required by Charterers will connect and disconnect
electric cables, fuel, water and pneumatic hoses when placed on board the
Vessel in port as well as alongside the offshore units; will operate the
machinery on board the Vessel for loading and unloading cargoes; and will
hook and unhook cargo on board the Vessel when loading or discharging
alongside offshore units. If the port regulations or the seamen and/or labour
unions do not permit the Crew of the Vessel to carry out any of this work, then
the Charterers shall make, at their own expense, whatever other
arrangements may be necessary, always under the direction of the Master.

(c)  If the Charterers have reason to be dissatisfied with the conduct of the
Master or any Officer or member of the Crew, the Owners on receiving
particulars of the complaint shall promptly investigate the matter and if the
complaint proves to be well founded, the Owners shall as soon as reasonably
possible make appropriate changes in the appointment.

(d)  The entire operation, navigation, and management of the Vessel shall be in
the exclusive control and command of the Owners, their Master, Officers and
Crew. The Vessel will be operated and the services hereunder will be
rendered as requested by the Charterers, subject always to the exclusive
right of the Owners or the Master of the Vessel to determine whether operation
of the Vessel may be safely undertaken. In the performance of the Charter
Party, the Owners are deemed to be an independent contractor, the
Charterers being concerned only with the results of the services performed.

7.     Owners to Provide

(a)  The Owners shall provide and pay for all provisions, wages and
all other
expenses of the Master, Officers and Crew; all maintenance and repair of the
Vessel’s hull, machinery and equipment as specified in ANNEX “A”; also,
except as otherwise provided in this Charter Party, for all insurance on the
Vessel, all dues and charges directly related to the Vessel’s flag and/or
registration, all deck, cabin and engine room stores, cordage required for
ordinary ship’s purposes mooring alongside in harbour, and all fumigation

 

 

expenses and de-ratisation certificates. The Owners’ obligations under this
Clause extend to cover all liabilities for consular charges appertaining to the
Master, Officers and Crew, customs or import duties arising at any time during
the performance of this Charter Party in relation to the personal effects of the
Master, Officers and Crew, and in relation to the stores, provisions and other
matters as aforesaid which the Owners are to provide and/or pay for and the
Owners shall refund to the Charterers any sums they or their agents may have
Paid or been compelled to pay in respect of such liability. (see also clause 55)

(b) On delivery the Vessel shall be equipped, if appropriate, at the Owners’
Expense with any towing and anchor handling equipment specified in Section
5(b) of ANNEX “A”. If during the Charter Period any such equipment becomes
Lost, damaged or unserviceable, other than as a result of the Owners’
Negligence, the Charterers shall either provide, or direct the Owners to
Provide, an equivalent replacement at the Charterers’ expense. 

8.     Charterers to Provide

(a)  While the Vessel is on hire the Charterers shall provide and pay for all fuel,
Lubricants, water, provisions, catering and accommodation services dispersants,
fire-fighting foam and transport thereof,
port charges, pilotage and boatmen and canal steersmen (whether compulsory or
not), launch hire (unless incurred in connection with the Owners’ business),
light dues, tug assistance, canal, dock, harbour, tonnage and other dues and
charges, agencies and commissions incurred on the Charterers’ business,
costs for security or other watchmen, and of quarantine (if occasioned by the
nature of the cargo carried or the ports visited whilst employed under this
Charter Party but not otherwise).

(b)  At all times the Charterers shall provide and pay for the loading and
unloading of cargoes so far as not done by the Vessel’s crew, cleaning of
cargo tanks, all necessary dunnage, uprights and shoring equipment for
securing deck cargo, all cordage except as to be provided by the Owners, all
ropes, slings and special runners (including bulk cargo discharge hoses)
actually used for loading and discharging, inert gas required for the
protection of cargo, and electrodes used for offshore works, and shall
reimburse the Owners for the actual cost of replacement of special mooring
lines to offshore units, wires, nylon spring lines etc. used for offshore works,
all hose connections and adaptors, and further, shall refill oxygen/acetylene
bottles used for offshore works.

(c)  The Charterers shall pay for customs duties, all permits, import duties
(including costs involved in establishing temporary or permanent importation
bonds), and clearance expenses, both for the Vessel and/or equipment,
required for or arising out of this Charter Party.

9.     Bunkers

Unless otherwise agreed, the Vessel shall be delivered with bunkers and
lubricants as on board and redelivered with sufficient bunkers to reach the
next bunkering stage en route to her next port of call. The Charterers upon
delivery and the Owners upon redelivery shall take over and pay for the
bunkers and lubricants on board at the prices prevailing at the times and
ports of delivery and redelivery.

10.     Hire and Payments (see also clause 53)

(a)  Hire -The Charterers shall pay Hire for the Vessel at the rate stated in Box
19 per day or pro rata for part thereof from the time that the Vessel is delivered
to the Charterers until the expiration or earlier termination of this Charter
Party.

(b)  Extension Hire. -If the option to extend the Charter Period under Clause
1(b) is exercised, Hire for such extension shall, unless stated in Box 20, be
mutually agreed between the Owners and the Charterers.

(c)  Adjustment of Hire. -The rate of hire shall be adjusted to reflect
documented changes, alter the date of entering into the Charter Party or the
date of commencement of employment, whichever is earlier, in the Owners’

 

 

costs arising from changes in the Charterers’ requirements or regulations
governing the Vessel and/or its Crew or this Charter Party.

(d)  Invoicing. -All invoices shall be issued in the contract currency stated in
Box 19 In respect of reimbursable expenses incurred in currencies other
than the contract currency, the rate of exchange into the contract currency
shall be that quoted by the Central Bank of the country of such other currency
as at the date of the Owners’ invoice. Invoices covering Hire and any other
payments due shall be issued monthly as stated in Box 21(i) or at the
expiration or earlier termination of this Charter Party. Notwithstanding the
foregoing, bunkers and lubricants on board at delivery shall be invoiced at
the time of delivery.

(e)  Payments. -Payments of Hire, bunker invoices and disbursements for the
Charterers’ account shall be received within the number of days stated in Box
23 from the date of receipt of the invoice. Payment shall be made in
the
contract currency in full without discount to the account stated in Box 22.
However any advances for disbursements made on behalf of and approved by
the Owners may be deducted from Hire due.

If payment is not received by the Owners within 5 banking days following the
due date the Owners are entitled to charge interest at the rate stated in Box 24
on the amount outstanding from and including the due date until payment is
received.

Where an invoice is disputed, the Charterers shall in any event pay the
undisputed portion of the invoice but shall be entitled to withhold payment of
the disputed portion provided that such portion is reasonably disputed and
the Charterers specify such reason. Interest will be chargeable at the rate
stated in Box 24 on such disputed amounts where resolved in favour of the
Owners. Should the Owners prove the validity of the disputed portion of the
invoice, balance payment shall be received by the Owners within 5 banking
days alter the dispute is resolved. Should the Charterers’ claim be valid, a
corrected invoice shall be issued by the Owners.

In default of payment as herein specified, the Owners may require the
Charterers to make payment of the amount due within 5 banking days of
receipt of notification from the Owners; failing which the Owners shall have
the right to withdraw the Vessel without prejudice to any claim the Owners
may have against the Charterers under this Charter Party.

While payment remains due the Owners shall be entitled to suspend the
performance of any and all of their obligations hereunder and shall have no
responsibility whatsoever for any consequences thereof, in respect of which
the Charterers hereby indemnify the Owners, and Hire shall continue to
accrue and any extra expenses resulting from such suspension shall be for
the Charterers’ account.

(f)  Audit -The Charterers shall have the right to appoint an independent
chartered accountant to audit the Owners’ books directly related to work
performed under this Charter Party at any time after the conclusion of the
Charter Party, up to the expiry of the period stated in Box 25, to determine the
validity of the Owners’ charges hereunder. The Owners undertake to make
their records available for such purposes at their principal place of business
during normal working hours. Any discrepancies discovered in payments
made shall be promptly resolved by invoice or credit as appropriate.

11.     Suspension of Hire

(a)  If as a result of any deficiency of Crew or of the Owners’ stores, strike of
Master, Officers and Crew, breakdown of machinery, damage to hull or other
accidents to the Vessel, the Vessel is prevented from working, no Hire shall be
payable in respect of any time lost and any Hire paid in advance shall be
adjusted accordingly provided always however that Hire shall not cease in the
event of the Vessel being prevented from working as aforesaid as a result of:

		
	 	(i) the carriage of cargo as noted in Clause 5(c)(iii) and (iv);
	 
	 	(ii) quarantine or risk of quarantine unless caused by the Master, Officers or
Crew having communication with the shore at any infected area not in
connection with the employment of the Vessel without the consent or the

 

 

		
	 	instructions of the Charterers;
	 
	 	(iii) deviation from her Charter Party duties or exposure to abnormal risks at
the request of the Charterers;
	 
	 	(iv) detention in consequence of being driven into port or to anchorage
through stress of weather or trading to shallow harbours or to river or
ports with bars or suffering an accident to her cargo, when the expenses
resulting from such detention shall be for the Charterers’ account
howsoever incurred;
	 
	 	(v) detention or damage by ice;
	 
	 	(vi) any act or omission of the Charterers, their servants or agents.

(b)  Liability for Vessel not Working. -The Owners’ liability for any loss,
damage or delay sustained by the Charterers as a result of the Vessel being
prevented from working by any cause whatsoever shall be limited to
suspension of hire.

(c)  Maintenance and Drydocking. —Notwithstanding sub-clause (a) hereof, the
Charterers shall grant the Owners a maximum of 24 hours on hire, which shall
be cumulative, per month or pro rata for part of a month from the
commencement of the Charter Period for maintenance and repairs including
drydocking (hereinafter referred to as “maintenance allowance”).

The Vessel shall be drydocked at regular intervals. The Charterers shall place
the Vessel at the Owners’ disposal clean of cargo, at a port (to be nominated
by the Owners at a later date) having facilities suitable to the Owners for the
purpose of such drydocking.

During reasonable voyage time taken in transits between such port and Area
of Operation the Vessel shall be on hire and such time shall not be counted
against the accumulated maintenance allowance.

Hire shall be suspended during any time taken in maintenance repairs and
drydocking in excess of the accumulated maintenance allowance.

In the event of less time being taken by the Owners for repairs and drydocking
or, alternatively, the Charterers not making the Vessel available for all or part
of this time, the Charterers shall, upon expiration or earlier termination of the
Charter Party, pay the equivalent of the daily rate of Hire then prevailing in
addition to Hire otherwise due under this Charter Party in respect of all such
time not so taken or made available.

Upon commencement of the Charter Period, the Owners agree to furnish the
Charterers with the Owners’ proposed drydocking schedule and the
Charterers agree to make every reasonable effort to assist the Owners in
adhering to such predetermined drydocking schedule for the Vessel. (see also clause 38)

12.     Liabilities and Indemnities

(a)  Owners. -Notwithstanding anything else contained in this Charter Party
excepting Clauses 5(c)(iii), 7(b), 8(b),12(g), 15(c) and 21, the Charterers shall
not be responsible for loss of or damage to the property of the Owners or of
their contractors and sub-contractors, including the Vessel, or for personal
injury or death of the employees of the Owners or of their contractors and
sub-contractors, arising out of or in any way connected with the performance
of this Charter Party, even if such loss, damage, injury or death is caused
wholly or partially by the act, neglect, or default of the Charterers, their
employees, contractors or sub-contractors, and even if such loss, damage,
injury or death is caused wholly or partially by unseaworthiness of any vessel;
and the Owners shall indemnify, protect, defend and hold harmless the
Charterers from any and against all claims, costs, expenses, actions,
proceedings, suits, demands and liabilities whatsoever arising out of or in
connection with such loss, damage, personal injury or death.

(b)  Charterers. -Notwithstanding anything else contained in this Charter
Party excepting Clause 21, the Owners shall not be responsible for loss of,
damage to, or any liability arising out of anything towed by the Vessel, any
cargo laden upon or carried by the Vessel or her tow, the property of the
Charterers or of their contractors and sub-contractors, including their
offshore units, or for personal injury or death of the employees of the
Charterers or of their contractors and sub-contractor” (other than the Owners

 

 

and their contractors and sub-contractors) or of anyone on board anything
towed by the Vessel, arising out of or in any way connected with the
performance of this Charter Party, even if such loss, damage, liability, injury
or death is caused wholly or partially by the act, neglect or default of the
Owners, their employees, contractors or sub-contractors, and even if such
loss, damage, liability, injury or death is caused wholly or partially by the
unseaworthiness of any vessel; and the Charterers shall indemnify, protect,
defend and hold harmless the Owners from any and against all claims, costs,
expenses, actions, proceedings, suits, demands, and liabilities whatsoever
arising out of or in connection with such loss, damage, liability, personal
injury or death.

(c)  Consequential Damages. -Neither party shall be liable to the other for, and
each party hereby agrees to protect, defend and indemnify the other against,
any consequential damages whatsoever arising out of or in connection with
the performance or non-performance of this Charter Party, including, but not
limited to, loss of use, loss of profits, shut-in or loss of production and cost of
insurance.

(d)  Limitations. -Nothing contained in this Charter Party shall be construed or
held to deprive the Owners or the Charterers, as against any person or party,
including as against each other, of any right to claim limitation of liability
provided by any applicable law, statute or convention, save that nothing in
this Charter Party shall create any right to limit liability. Where the Owners or
the Charterers may seek an indemnity under the provisions of this Charter
Party or against each other in respect of a claim brought by a third party, the
Owners or the Charterers shall seek to limit their liability against such third
party.

(e)  Himalaya Clause. -(i) All exceptions, exemptions, defences, immunities,
limitations of liability, indemnities, privileges and conditions granted or
provided by this Charter Party or by any applicable statute, rule or regulation
for the benefit of the Charterers shall also apply to and be for the benefit of the
Charterers’ parent, affiliated, related and subsidiary companies; the
Charterers’ contractors, sub-contractors, clients, joint venturers and joint
interest owners (always with respect to the job or project on which the Vessel
is employed); their respective employees and their respective underwriters.

(ii)  All exceptions, exemptions, defences, immunities, limitations of liability,
indemnities, privileges and conditions granted or provided by this Charter
Party or by any applicable statute, rule or regulation for the benefit of the
Owners shall also apply to and be for the benefit of the Owners’ parent,
affiliated, related and subsidiary companies, the Owners’ sub-contractors,
the Vessel, its Master, Officers and Crew, its registered owner, its operator, its
demise charterer(s), their respective employees and their respective
underwriters.

(iii)  The Owners or the Charterers shall be deemed to be acting as agent or
trustee of and for the benefit of all such persons and parties set forth above,
but only for the limited purpose of contracting for the extension of such
benefits to such persons and parties.

(f)  Mutual Waiver of Recourse (Optional, only applicable if stated in Box 28, but
regardless of whether this option is exercised the other provisions of Clause 12
shall apply and shall be paramount)

In order to avoid disputes regarding liability for personal injury or death of
employees or for loss of or damage to property, the Owners and the
Charterers have entered into, or by this Charter Party agree to enter into, an
Agreement for Mutual Indemnity and Waiver of Recourse (in a form
substantially similar to that specified in ANNEX “C”) between the Owners, the
Charterers and the various contractors and sub-contractors of the Charterers.

(g)  Hazardous and Noxious Substances. —Notwithstanding any other
provision of this Charter Party to the contrary, the Charterers shall always be
responsible for any losses, damages or liabilities suffered by the Owners,
their employees, contractors or sub-contractors, by the Charterers, or by
third parties, with respect to the Vessel or other property, personal injury or
death, pollution or otherwise, which losses, damages or liabilities are caused,

 

 

directly or indirectly, as a result of the Vessel’s carriage of any hazardous and
noxious substances in whatever form as ordered by the Charterers, and the
Charterers shall defend, indemnify the Owners and hold the Owners harmless
for any expense, loss or liability whatsoever or howsoever arising with
respect to the carriage of hazardous or noxious substances.

13.     Pollution

(a)  Except as otherwise provided for in Clause 15(c)(iii), the Owners shall be
liable for, and agree to indemnify, defend and hold harmless the Charterers
against, all claims, costs, expenses, actions, proceedings, suits, demands
and liabilities whatsoever arising out of actual or potential pollution damage
and the cost of cleanup or control thereof arising from acts or omissions of
the Owners or their personnel which cause or allow discharge, spills or leaks
from the Vessel, except as may emanate from cargo and/or Charterers equipment thereon
or therein.

(b)  The Charterers shall be liable for and agree to indemnify, defend and hold
harmless the Owners from all claims, costs, expenses, actions, proceedings,
suits, demands, liabilities, loss or damage whatsoever arising out of or
resulting from any other actual or potential pollution damage, even where
caused wholly or partially by the act, neglect or default of the Owners, their
employees, contractors or sub-contractors or by the unseaworthiness of the
Vessel.

14.     Insurance

(a)(i) The Owners shall procure and maintain in effect for the duration of this
Charter Party, with reputable insurers, the insurances set forth in ANNEX “B”.
Policy limits shall not be less than those indicated.  Reasonable deductibles
are acceptable and shall be for the account of the Owners.

(ii)  The Charterers shall upon request be named as co-insured. The Owners
shall upon request cause insurers to waive subrogation rights against the
Charterers (as encompassed in Clause 12(e)(i)). Co-insurance and/or
waivers of subrogation shall be given only insofar as these relate to liabilities
which are properly the responsibility of the Owners under the terms of this
Charter Party

(b)  The Owners shall upon request furnish the Charterers with certificates of
insurance which provide sufficient information to verify that the Owners have
complied with the insurance requirements of this Charter Party.

(c)  If the Owners fail to comply with the aforesaid insurance requirements, the
Charterers may, without prejudice to any other rights or remedies under this
Charter Party, purchase similar coverage and deduct the cost thereof from
any payment due to the Owners under this Charter Party. (see also clause 37)

15.     Saving of Life and Salvage

(a)  The Vessel shall be permitted to deviate for the purpose of saving life at
sea without prior approval of or notice to the Charterers and without loss of
Hire provided however that notice of such deviation is given as soon as
possible.

(b)  Subject to the Charterers’ consent, which shall not be unreasonably
withheld, the Vessel shall be at liberty to undertake attempts at salvage, it
being understood that the Vessel shall be off hire from the time she leaves
port or commences to deviate and she shall remain off-hire until she is again
in every way ready to resume the Charterers’ service at a position which is not
less favourable to the Charterers than the position at the time of leaving port
or deviating for the salvage services.

All salvage monies earned by the Vessel shall be divided equally between the
Owners and the Charterers, after deducting the Master’s, Officers’ and Crew’s
share, legal expenses, value of fuel and lubricants consumed, Hire of the
Vessel lost by the Owners during the salvage, repairs to damage sustained, if
any, and any other extraordinary loss or expense sustained as a result of the
salvage.

The Charterers shall be bound by all measures taken by the Owners in order

 

 

to secure payment of salvage and to fix its amount.

(c)  The Owners shall waive their right to claim any award for salvage
performed on property owned by or contracted to the Charterers, always
provided such property was the object of the operation the Vessel was
chartered for, and the Vessel shall remain on hire when rendering salvage
services to such property. This waiver is without prejudice to any right the
Vessel’s Master, Officers and Crew may have under any title.

If the Owners render assistance to such property in distress on the basis of
“no claim for salvage”, then, notwithstanding any other provisions contained
in this Charter Party and even in the event of neglect or default of the Owners,
Master, Officers or Crew.

		
	 	(i) The Charterers shall be responsible for and shall indemnify the Owners
against payments made, under any legal rights, to the Master, Officers
and Crew in relation to such assistance.
	 
	 	(ii) The Charterers shall be responsible for and shall reimburse the Owners
for any loss or damage sustained by the Vessel or her equipment by
reason of giving such assistance and shall also pay the Owners’
additional expenses thereby incurred.
	 
	 	(iii) The Charterers shall be responsible for any actual or potential spill,
seepage and/or emission of any pollutant howsoever caused occurring
within the offshore site and any pollution resulting therefrom,
wheresoever it may occur and including but not limited to the cost of
such measures as are reasonably necessary to prevent or mitigate
pollution damage, and the Charterers shall indemnify the Owners
against any liability, cost or expense arising by reason of such actual or
potential spill, seepage and/or emission.
	 
	 	(iv) The Vessel shall not be off-hire as a consequence of giving such
assistance, or effecting repairs under sub-paragraph (ii) of this sub-
clause, and time taken for such repairs shall not count against time
granted under Clause 11(c).
	 
	 	(v) The Charterers shall indemnify the Owners against any liability, cost
and/or expense whatsoever in respect of any loss of life, injury, damage
or other loss to person or property howsoever arising from such
assistance.

16.     Lien

The Owners shall have a lien upon all cargoes and equipment for all claims against the
Charterers under this Charter Party and the Charterers shall have a lien on the
Vessel for all monies paid in advance and not earned. The Charterers will not
suffer, nor permit to be continued, any lien or encumbrance incurred by them
or their agents, which might have priority over the title and interest of the
Owners in the Vessel. Except as provided in Clause 12, the Charterers shall
indemnify and hold the Owners harmless against any lien of whatsoever
nature arising upon the Vessel during the Charter Period while she is under
the control of the Charterers, and against any claims against the Owners
arising out of the operation of the Vessel by the Charterers or out of any
neglect of the Charterers in relation to the Vessel or the operation thereof.
Should the Vessel be arrested by reason of claims or liens arising out of her
operation hereunder, unless brought about by the act or neglect of the
Owners, the Charterers shall at their own expense take all reasonable steps to
secure that within a reasonable time the Vessel is released and at their own
expense put up bail to secure release of the Vessel.

17.     Sublet and Assignment

(a)  Charterers. -The Charterers shall have the option of subletting, assigning
or loaning the Vessel to any person or company not competing with the
Owners, subject to the Owners’ prior approval which shall not be
unreasonably withheld, upon giving notice in writing to the Owners, but the
original Charterers shall always remain responsible to the Owners for due
performance of the Charter Party and contractors of the person or company
taking such subletting, assigning or loan shall be deemed contractors of the

 

 

Charterers for all the purposes of this Charter Party. The Owners make it a
condition of such consent that additional Hire shall be paid as agreed
between the Charterers and the Owners having regard to the nature and
period of any intended service of the Vessel.

(b) If the Vessel is sublet, assigned or loaned to undertake rig anchor
Handling and/or towing operations connected with equipment, other than that
Used by the Charterers, then a daily increment to the Hire in the amount as
Stated in Box 29 or pro rata shall be paid for the period between departure for
such operations and return to her normal duties for the Charterers. 

(c)  Owners -The Owners may not assign or transfer any part of this Charter
Party without the written approval of the Charterers, which approval shall not
be unreasonably withheld.

Approval by the Charterers of such subletting or assignment shall not relieve
the Owners of their responsibility for due performance of the part of the
services which is sublet or assigned.

18.     Substitute Vessel

The Owners shall be entitled at any time, whether before delivery or at any
other time during the Charter Period, to provide a substitute vessel, subject to
the Charterers’ prior approval which shall not be unreasonably withheld.

19.     War

(a)  Unless the consent of the Owners be first obtained, the Vessel shall not be
ordered nor continue to any port or place or on any voyage nor be used on
any service which will bring the Vessel within a zone which is dangerous as a
result of any actual or threatened act of war, war, hostilities, warlike
operations, acts of piracy or of hostility or malicious damage against this or
any other vessel or its cargo by any person, body or state whatsoever,
revolution, civil war, civil commotion or the operation of international law, nor
be exposed in any way to any risks or penalties whatsoever consequent upon
the imposition of sanctions, nor carry any goods that may in any way expose
her to any risks of seizure, capture, penalties or any other interference of any
kind whatsoever by the belligerent or fighting powers or parties or by any
government or rulers.

(b)  Should the Vessel approach or be brought or ordered within such zone, or
be exposed in any way to the said risks, (i) the Owners shall be entitled from
time to time to insure their interest in the Vessel for such terms as they deem
fit up to its open market value and also in the Hire against any of the risks
likely to be involved thereby, and the Charterers shall make a refund on
demand of any additional premium thereby incurred, and (ii) notwithstanding
the terms of Clause 11 Hire shall be payable for all time lost including any loss
owing to loss of or injury to the Master, Officers, Crew or passengers or to
refusal by any of them to proceed to such zone or to be exposed to such risks.

(c)  In the event of additional insurance premiums being incurred or the wages
of the Master and/or Officers and/or Crew and/or the cost of provisions and/
or stores for deck and/or engine room being increased by reason of or during
the existence of any of the matters mentioned in sub-clause (a) the amount of
any additional premium and/or increase shall be added to the Hire, and paid
by the Charterers on production of the Owners’ account therefore, such
account being rendered monthly.

(d)  The Vessel shall have liberty to comply with any orders or directions as to
departure, arrival, routes, ports of call, stoppages, destination, delivery or in
any other way whatsoever given by the government of the nation under whose
flag the Vessel sails or any other government or any person (or body) acting
or purporting to act with the authority of such government or by any
committee or person having under the terms of the war risks insurance on the
Vessel the right to give any such orders or directions.

(e)  In the event of the outbreak of war (whether there be a declaration of war or
not) between any of the countries stated in Box 30 or in the event of the nation
under whose flag the Vessel sails becoming involved in war (whether there be
a declaration of war or not) either the Owners or the Charterers may terminate

 

 

this Charter Party, whereupon the Charterers shall redeliver the Vessel to the
Owners in accordance with PART I if it has cargo on board after discharge
thereof at destination or, if debarred under this Clause from reaching or
entering it, at a near open and safe port or place as directed by the Owners, or
if the Vessel has no cargo on board, at the port or place at which it then is or if
at sea at a near, open and safe port or place as directed by the Owners. In all
cases Hire shall continue to be paid and, except as aforesaid, all other
provisions of this Charter Party shall apply until redelivery.

(f)  If in compliance with the provisions of this Clause anything is done or is not
done, such shall not be deemed a deviation.

The Charterers shall procure that all Bills of Lading (if any) issued under this
Charter Party shall contain the stipulations contained in sub-clauses (a), (d)
and (f) of this Clause.

20.     Excluded Ports

(a)  The Vessel shall not be ordered to nor bound to enter without the Owners’
written permission (a) any place where fever or epidemics are prevalent or to
which the Master, Officers and Crew by law are not bound to follow the Vessel;

(b)  any ice-bound place or any place where lights, lightships, marks and
buoys are or are likely to be withdrawn by reason of ice on the Vessel’s arrival
or where there is risk that ordinarily the Vessel will not be able on account of
ice to reach the place or to get out after having completed her operations. The
Vessel shall not be obliged to force ice nor to follow an icebreaker. If, on
account of ice, the Master considers it dangerous to remain at the loading or
discharging place for fear of the Vessel being frozen in and/or damaged, he
has liberty to sail to a convenient open place and await the Charterers’ fresh
instructions.

(b)  Should the Vessel approach or be brought or ordered within such place,
or be exposed in any way to the said risks, the Owners shall be entitled from
time to time to insure their interests in the Vessel and/or Hire against any of
the risks likely to be involved thereby on such terms as they shall think fit, the
Charterers to make a refund to the Owners of the premium on demand.
Notwithstanding the terms of Clause 11 Hire shall be paid for all time lost
including any lost owing to loss of or sickness or injury to the Master, Officers,
Crew or passengers or to the action of the Crew in refusing to proceed to such
place or to be exposed to such risks.

21.     General Average and New Jason Clause

General Average shall be adjusted and settled in London unless otherwise
stated in Box31. according to York/Antwerp Rules, 1974, as may be
amended.
Hire shall not contribute to General Average. Should adjustment be made in
accordance with the law and practice of the United States of America, the
following provision shall apply:

“In the event of accident, danger, damage or disaster before or after the
commencement of the voyage, resulting from any cause whatsoever, whether
due to negligence or not, for which, or for the consequence of which, the
Owners are not responsible, by statute, contract or otherwise, the cargo,
shippers, consignees or owners of the cargo shall contribute with the Owners
in General Average to the payment of any sacrifices, loss or expenses of a
General Average nature that may be made or incurred and shall pay salvage
and special charges incurred in respect of the cargo.

If a salving vessel is owned or operated by the Owners, salvage shall be paid
for as fully as if the said salving vessel or vessels belonged to strangers. Such
deposit as the Owners, or their agents, may deem sufficient to cover the
estimated contribution of the cargo and any salvage and special charges
thereon shall, if required, be made by the cargo, shippers, consignees or
owners of the cargo to the Owners before delivery”.

22.     Both-to-Blame Collision Clause

If the Vessel comes into collision with another ship as a result of the
negligence of the other ship and any act, neglect or default of the Master,

 

 

mariner, pilot or the servants of the Owners in the navigation or the
management of the Vessel, the Charterers will indemnify the Owners against
all loss or liability to the other or non-carrying ship or her owners insofar as
such loss or liability represent loss of or damage to, or any claim whatsoever
of the owners of any goods carried under this Charter Party paid or payable by
the other or non-carrying ship or her owners to the owners of the said goods
and set-off, recouped or recovered by the other or non-carrying ship or her
owners as part of their claim against the Vessel or the Owners. The foregoing
provisions shall also apply where the owners, operators or those in charge of
any ship or ships or objects other than or in addition to the colliding ships or
objects are at fault in respect of a collision or contact.

23.     Structural Alterations and Additional Equipment

The Charterers shall have the option of, at their expense, making structural
alterations to the Vessel or installing additional equipment with the written
consent of the Owners which shall not be unreasonably withheld but unless
otherwise agreed the Vessel is to be redelivered reinstated, at the Charterers’
expense, to her original condition. The Vessel is to remain on hire during any
period of these alterations or reinstatement. The Charterers, unless otherwise
agreed, shall be responsible for repair and maintenance of any such
alteration or additional equipment.

24.     Health and Safety

The Owners shall comply with and adhere to all applicable international,
national and local regulations pertaining to health and safety, and such
Charterers’ instructions as may be appended hereto.

25.     Taxes

Each party shall pay taxes due on its own profit, income and personnel. The
Charterers shall pay all other taxes and dues arising out of the operation or
use of the Vessel during the Charter Period.

In the event of change in the Area of Operation or change in local regulation
and/or interpretation thereof, resulting in an unavoidable and documented
change of the Owners’ tax liability after the date of entering into the Charter
Party or the date of commencement of employment, whichever is the earlier,
Hire shall be adjusted accordingly.

26.     Early Termination

(a) For Charterers’ Convenience. -The Charterers may terminate this Charter
Party at any time by giving the Owners written notice as stated in Box 15 and
By paying the settlement stated in Box 14 and the demobilisation charge
Stated in Box 16, as well as Hire or other payments due under the Charter
Party. 

(b)  For Cause. -If either party becomes informed of the occurrence of any
event described in this Clause that party shall so notify the other party
promptly in writing and in any case within 3 days after such information is
received. If the occurrence has not ceased within 3 days after such
notification has been given, this Charter Party may be terminated by either
party, without prejudice to any other rights which either party may have, under
any of the following circumstances:

(i)  Requisition. -If the government of the state of registry and/or the flag of
the Vessel, or any agency thereof, requisitions for hire or title or
otherwise takes possession of the Vessel during the Charter Period.

(ii)  Confiscation. -If any government, individual or group, whether or not
purporting to act as a government or on behalf of any government,
confiscates, requisitions, expropriates, seizes or otherwise takes
possession of the Vessel during the Charter Period.

(iii)  Bankruptcy. -In the event of an order being made or resolution passed
for the winding up, dissolution, liquidation or bankruptcy of either party
(otherwise than for the purpose of reconstruction or amalgamation) or if
a receiver is appointed or if it suspends payment or ceases to carry on

 

 

business.

(iv)  Loss of Vessel. -If the Vessel is lost, actually or constructively, or
missing, unless the Owners provide a substitute vessel pursuant to
Clause 18. In the case of termination, Hire shall cease from the date the
Vessel was lost or, in the event of a constructive total loss, from the date
of the event giving rise to such loss. If the date of loss cannot be
ascertained or the Vessel is missing, payment of Hire shall cease from
the date the Vessel was last reported.

(v)  Breakdown. -If, at any time during the term of this Charter Party, a
breakdown of the Owners’ equipment or Vessel results in the Owners’
being unable to perform their obligations hereunder for a period
exceeding that stated in Box 32, unless the Owners provide a substitute
vessel pursuant to Clause 18.

(vi)  Force Majeure. -If a force majeure condition as defined in Clause 27
prevails for a period exceeding 15 consecutive days. Any Force Majeure situation
would not include Charterers equipment.

(vii)  Default. -If either party is in repudiatory breach of its obligations
hereunder.

Termination as a result of any of the above mentioned causes shall not relieve
the Charterers of any obligation for Hire and any other payments due.

27.     Force Majeure

Neither the Owners nor the Charterers shall be liable for any loss, damages or
delay or failure in performance hereunder resulting from any force majeure
event. Including but not limited to acts of God, fire. action of the elements.
epidemics. war (declared or undeclared). warlike actions. insurrection.
revolution or civil strike, piracy, civil war or hostile action, strikes or
differences with workmen (except for disputes relating solely to the Owners’
or the Charterers employees). acts of the public enemy. federal or state laws,
rules and regulations of any governmental authorities having or asserting
jurisdiction in the premises or of any other group, organisation or informal
association (whether or not formally recognised as a government), and any
other cause beyond the reasonable control of either party which makes
continuance of operations impossible.

28.     Notices and Invoices

Notices and invoices required to be given under this Charter Party shall be
given in writing to the addresses stated in Boxes 21, 35 and 36 as appropriate.

29.     Wreck Removal

If the Vessel sinks and becomes a wreck and an obstruction to navigation and
has to be removed upon request by any compulsory law or authority having
jurisdiction over the area where the wreck is placed, the Owners shall be
liable for any and all expenses in connection with the raising, removal,
destruction, lighting or marking of the wreck.

30.     Confidentiality

All information or data obtained by the Owners in the performance of this
Charter Party is the property of the Charterers, is confidential and shall not be
disclosed without the prior written consent of the Charterers. The Owners shall use their best efforts to ensure that the Owners, any of their
sub-contractors, and employees and agents thereof shall not disclose any
such information or data.

31.     Law and Arbitration

*) (a) This Charter Party shall be governed by English law and any dispute
arising out of this Charter Party shall be referred to arbitration in London, one
arbitrator being appointed by each party, in accordance with the Arbitration
Acts 1950 and 1979 or any statutory modification or re-enactment thereof for
the time being in force. On the receipt by one party of the nomination in
writing of the other party’s arbitrator, that party shall appoint their arbitrator

 

 

within 14 days, failing which the arbitrator already appointed shall act as sole
arbitrator. If two arbitrators properly appointed shall not agree they shall
appoint an umpire whose decision shall be final.

*) (b) Should any dispute arise out of this Charter Party, the matter in dispute
Shall be referred to three persons at New York, one to be appointed by each of
The parties hereto, and the third by the two so chosen; their decision or that of
Any two of them shall be final, and for purpose of enforcing any award, this
Agreement may be made a rule of the Court. The arbitrators shall be members
Of the Society of Maritime Arbitrators, Inc. of New York and the proceedings
Shall be conducted in accordance with the rules of the Society.

*) (c) Any dispute arising out of this Charter Party shall be referred to arbitration
At the place stated in Box 33 subject to the law and procedures applicable
there. 

(d)  If Box 33 in PART I is not filled in, sub-clause (a) of this Clause shall apply.
*) (a), (b) and (c) are alternatives; state alternative agreed in Box 33

32.     Entire Agreement

This is the entire agreement of the parties, which supersedes all previous
written or oral understandings and which may not be modified except by a
written amendment signed by both parties.

33.     Severability Clause

If any portion of this Charter Party is held to be invalid or unenforceable for
any reason by a court or governmental authority of competent jurisdiction,
then such portion will be deemed to be stricken and the remainder of this
Charter Party shall continue in full force and effect.

34.     Demise

Nothing herein contained shall be construed as creating a demise of the
Vessel to the Charterers.

35.     Definitions

“Well” is defined for the purposes of this Charter Party as the time required to
drill. test. Complete and/or abandon a single borehole including any side-
track thereof.

“Offshore unit” is defined for the purposes of this Charter Party as any vessel.
offshore installation. structure and/or mobile unit used in offshore
exploration, construction, pipelaying or repair, exploitation or production.

“Offshore site” is defined for the purposes of this Charter Party as the area
within three nautical miles of an “offshore unit” from or to which the Owners
are requested to take their Vessel by the Charterers.

“Employees” is defined for the purposes of this Charter Party as employees.
directors. Officers. servants. agents or invitees.

36.     Headings

The headings of this Charter Party are for identification only and shall not be
deemed to be part hereof or be taken into consideration in the interpretation
or construction of this Charter Party.

 

 

Additional clauses to Bimco Supplytime 89 Charter Party reference
CABLE SHIPPING INC. and TORCH OFFSHORE LLC, Salford England,
dated 31st May 2002.

	 	 	 
	 	 	
37. Insurance
	 	 	 
	 	 	
Owners shall provide to Charterers copies of Vessel’s present
insurances and shall maintain these during the full period
of the Charter Party. These include Hull & Machinery
insurance, P&I and SPS covers. The Charterers, shall also
provide to the Owners copies of insurances relating to their
equipment and personnel.
	 	 	 
	 	 	
With reference to Clause 37, any insurance / P&I Club cover
excess as may be required by the Charterers and / or Client over and above the Owners’
normal cover will be for the
Charterers’ account and in any event subject to Owners’
Insurance company approval of
Charterers’ demand. Extra war risks premium / expenses as well
as extra wages for crew etc, if applicable, to be for
Charterers' account. Also any additional cost caused to the
Owners due to the P&I insurance extra cover to be obtained
through a Mexican Insurance broker and which Owners are
unable to recover from their P&I current insurers, shall be
for Charterers account
	 	 	 
	 	 	
38. Clarification to Clause 11(c) — Suspension of Hire
	 	 	 
	 	 	
(c) Maintenance & Drydocking: Owners agree that the Vessel will only be
drydocked as per Class requirements during the period of this charter unless damage to the
Vessel’s hull or machinery has occurred which prevents the
Vessel from performing without
repairs. Owners shall however be entitled to carry out general maintenance work to the
Vessel and the Vessel’s equipment provided such maintenance, preventive or corrective
work does not interfere with Charterers’ operations at the time.
	 	 	 
	 	 	
39. ISM Code
	 	 	 
	 	 	
From the date the International Management Code (ISM) comes into force for the Vessel, and thereafter for the period of this Charter Party, the Owner undertakes that both the Vessel
and the company owning and/or operating the Vessel, as defined in the ISM code, shall
comply with the requirement of this code. The Owners shall
provide a copy of the relevant Document Of Compliance (DOC)
and Safety Management Certificate (SMC) to the Charterers.
	 	 	 
	 	 	
40. Technicians
	 	 	 
	 	 	
Charterers shall have the right to utilise the technicians
space on board the Vessel and shall keep the Owners regularly
advised of the number of technicians expected to be on board
at any one time. The total number on board shall never exceed
the number specified in the Vessel’s safety equipment
certificate. The number of technicians that can be carried on
board the Vessel shall be mutually agreed after consideration
of the number of any additional crew that may be required by
the Vessel.
	 	 	 
	 	 	
41. Crew Changes
	 	 	 
	 	 	
The Owners shall be responsible for arranging timely relief
of the Owners’ personnel on
board the Vessel which shall be achieved by Charterers
fulfilling their obligations as set out below.

1

 

	 	 	 
	 	 	
The Charterers shall provide the Owners with a specific and
regular programme of the Vessel’s movements for a minimum of 14 days in advance which also shall include the number of
Charterers’ technicians.
	 	 	 
	 	 	
When a crew change needs to be effected in or through a
country that has visa regulations, Charterers shall give
the Owners sufficient notice thereof for the Owners to complete and
obtain visas for the crew joining or leaving the vessel.
	 	 	 
	 	 	
When or where the crew changes need to be effected offshore
by helicopter or supply vessel, Owners shall be responsible
for the timely arrival and cost of any of their joining crew
up to the appropriate heliport or ship berth. Charterers
shall be responsible for the cost and arrangement of the
transport to the Vessel’s offshore location for all of the
joining crew and until their arrival on board the Vessel. The
transportation cost and arrangement for any crew leaving the
Vessel from the offshore location shall be for the account of
the Charterers until the crew’s arrival onshore at an
appropriate heliport or ships berth, from which point the
Owners shall become responsible for all repatriation
arrangements and associated costs for Owners’ personnel only.
	 
	 	 	
Charterers shall make their own arrangements and be
responsible for the costs incurred for personnel changes of
those persons appointed and or supplied by the Charterers or
their clients. Such arrangements shall be co-ordinated with
the Owners and/or the Master of the Vessel.
	 	 	 
	 	 	
42. Charter Hire
	 	 	 
	 	 	
This shall be payable per day or pro rata for a part of a day
and excluding all catering and accommodation services, fuel,
lubes, potable water, provisions, garbage handling and slop
removal, dues, fees, tests, craneage and pilot fees, which
shall be for Charterers’ account, Daily hire as per box 19.
	 	 	 
	 	 	
43. Crewing of the Vessel
	 	 	 
	 	 	
When the Vessel is operational, the following crew shall be
provided and paid for by the Owners.
	 	 	 
	 	 	
1) Master

2) Chief Officer

3) Senior DPO

4) DPO

5) DPO

6) Chief Eng.

7) 2nd Eng.

8) 2nd Eng.

9) DP ET

10) Cook

11) Cook

12) 3rd Eng.

13) 3rd Eng.

14) Motorman

15) Motorman

16) AB

17) AB

18) Steward

2

 

	 	 	 
	 	 	
19) Steward

20) Steward

21) Steward

22) Rigger Foreman

23) Rigger Foreman

24) Rigger

25) Rigger

26) Rigger

27) Rigger

28) Welder

29) Welder
	 	 	 
	 	 	
Owners officers to be proficient in English language.
	 
	 	 	
44. Vessel’s Name and Charterers’ Markings and Logos
	 	 	 
	 	 	
The Vessel shall be renamed “ MIDNIGHT HUNTER ” at Owners expense. The
Charterers have the right to display prominently on both sides of the Vessel
their own logo and markings during the period of the charter. All costs in this connection
shall be for Charterers account.
	 	 	 
	 	 	
45. Communication
	 	 	 
	 	 	
Charterers or their clients use of the Vessel’s communications
system shall be
recharged by the Owners to the Charterers at cost plus 10% handling.
	 	 	 
	 	 	
46. Taxes
	 	 	 
	 	 	
Any/all local taxes and or dues/levies calculated on ship/hire shall be for
Charterers’ account
	 	 	 
	 	 	
47. Owners’ Right to Sell
	 	 	 
	 	 	
The Owners shall have the right at any time to sell the Vessel during the
period of the charter and the new owners shall be required to perform this
Charter Party.
The Owners shall have also the option to change vessel’s flag.
	 	 	 
	 	 	
48. Bank Guarantee
	 	 	 
	 	 	
Charterers to provide upon signing of this Charter Party an on demand guarantee
issued in favour of the Owners by a first class bank acceptable to the Owners,
and in a form acceptable to the Owners, guaranteeing the payment on the first
written demand of The Owners of the sum of US$1,500,000 for the first 365 days
of the charter, reduced to US$1,000,000 for the second 365 days of the charter
and US$500,000 for the third 365 days of the charter to the Owners in the event
that Charterers shall fail to make any payment of hire to the Owners as per
this Charter Party, it being expressly understood that the said guarantee shall
not in any way require either the Owners or the guarantor first to take action
against the Charterers as a condition of the payment by the guarantor. It also,
being expressly understood that the said guarantee shall not limit the Owners
right to take action against the Charterers. The said guarantee shall remain in
full force and effect for the duration of the contract as amended herein.

3

 

	 	 	 
	 	 	
The form of bank guarantee is enclosed in "Annex E ” herein. Once the delivery date is
known the bank shall be instructed to issue a hard copy of the bank guarantee letter to
Owners. In recognition of Owners requirement that the bank guarantee shall be governed by
English law, Owners agree to contribute US$5.625, - to the costs of arranging this, and this
amount shall be deducted from the first charter hire payment
	 	 	 
	 	 	
49. Purchase Options
	 	 	 
	 	 	
This agreement includes purchase options for which
declarations may be made on the
640th day or 915th day into the charter period. The option
prices are:

	 
	after
730 days  :  US$12,500,000
	after 1095 days :  US$10,000,000

	 	 	 
	 	 	
The terms of a purchase shall be governed by the Saleform
1993 as attached in Annex ‘D’.
	 	 	 
	 	 	
50. Contacts and Notices

	 	 	 	 	 
	 	 	
(a)
	 	The Owners Commercial Manager is:

GO-DP Ltd

Tamal 3, 36 Birbirkara Hill

ST. JULIANS

STJ 15—MALTA

contact name: Mr. Simon Fiorini Lowell

phone: +356 21 383882

fax: +356 21 383795

e-mail: godp@maltanet.net
	 	 	 	 	 
	 	 	 	 	The Owners Technical Manager is:
	 	 	 	 	Argo sri

Via Monteruscello, 75—

80078 Pozzuoli (Naples) — ITALY

contact name: Cap. Vincenzo Fevola (General Manager)

phone: +39 081 5230901

fax: + 39 081 5230920

e-mail: info@argosrl.com

mob.phone: +39 3484092172
	 	 	 	 	 
	 	 	
(b)
	 	The Charterers VP Operations is:
	 	 	 	 	Torch Offshore L.L.C.

401 Whitney Avenue, Suite 400

Gretna, Louisiana 70056, USA

contact name: W.
Bergeron

phone: +1 504 367 7030

fax:+1 504 367 7075

e-mail: w.bergeron@torchinc.com

4

 

	 	 	 
	 	 	
51. Classification
	 	 	 
	 	 	
Owners undertake to keep the Vessel in class throughout the charter period. However,
the classification of Charterers equipment, such as diving system, craneage, etc. shall be
Charterers responsibility and for their account.
	 	 	 
	 	 	
52. Delivery
	 	 	 
	 	 	
With reference to Box 5 and Box 6, and Clause 2 (a), the
Vessel shall he delivered on a date between
August 10th—
September 10th 2002, in Owners’ option. Owners to give
Charterers 25/10/7/5 approximate and 3/2/1 days definite
notice of delivery.
	 	 	 
	 	 	
53. Rig-Up Period
	 	 	 
	 	 	
Owners shall grant Charterers a rig-up period of maximum 35
continuous days from
delivery at half the operational day rate (i.e. US$9,250, per
day) for the installation of
Charterers equipment. During this period the Vessel shall be
in port and non operational.
Upon passing the pilot station of the said port, the full
charter hire shall apply.
	 	 	 
	 	 	
54. New Crane Pedestals
	 	 	 
	 	 	
Owners shall arrange for moving the existing crane and
installing a pedestal for an additional crane to the agreed
design in Owners time in Gdynia prior to Delivery at a lump
sum cost of US$100,000. The work shall include ancillary
works/items (such as electrical works, supply of oil, supply
of paint, workshop documentation, etc). Such amount shall be
paid by Charterers to Owners on completion of works.
	 	 	 
	 	 	
55. Victualling and Accommodation
	 	 	 
	 	 	
With reference to box 26, box 27 and clause 5 (c) (i),
Charterers shall provide and pay for all victuals and cooking
/ janitoring consumables at no cost to the Owners. The crew
list includes 2 cooks and 4 stewards which Charterers
consider sufficient for up to 80 people on board. If the
number of persons on board increases to between 80 and 100
then Charterers shall provide one additional steward. If the
number of persons on board is over 100, then Charterers shall
provide another additional steward.
	 	 	 
	 	 	
56. Cancellation
	 	 	 
	 	 	
Chartereres shall have the right to cancel this Charter 18 months
from delivery by giving Owners 180 days written notice and payment in
one lump sum of the number of unexpired
days of the Charter time at the rate of US$6,000 per day on the
date of redelivery.
	 	 	 
	 	 	
End of Part II

5

 

ANNEX “A” TO Uniform Time
Charter Party for Offshore Service Vessels

Code Name: “SUPPLYTIME 89”-dated 31st May 2002

Mv “ G. MURRAY “ (Class 2 DP)

	 	 	 
	Flag/Classification:	 	 
	Flag

Port of Registry

Official Number

IMO Number

Call Sign

Classification	 	
St. Vincent & the Grenadines

Kingstown

8714

7628760

J8B2242

RINA C (Maltese Cross) Supply Vessel; Special Service (Research Ship)

Dynapos AM/AT R, ELI — Unrestricted Navigation
	 	 	 
	Main particulars:	 	 
	Built

Reconstructed

Commissioned

LOA

LBP

Breadth

Depth

Draft Summer	 	
1978 Far East Livingstone Shipyard — Singapore

2002 (Poland)

2002 (Poland)

104,00 m (including anchor racks)

95,20 m

18,80 m (moulded) — 20,90 m (extreme incl. anchor racks)

6,706 m

5,20 m
	 	 	 
	Capacities:	 	 
	Displacement

Deadweight

GT/NT

Clear deck space

Diesel Oil

Fresh Water

Ballast Water	 	
8150 t

4500 t

3993 / 1197 (approx)

over 1000 sqm @ 10 t/sqm

abt 1000 t

abt 1000 t

abt 1600 t
	 	 	 
	Machinery:	 	 
	Engines

Propellers

Aft Thrusters

Bow Thrusters

Generators

Emergency Generator	 	
2 x 1650 Hp Wichmann 5AX, 375 RPM

2 x CPP

2 x 2000 Hp Brunvoll azimuth thrusters

1 x 800 Hp Brunvoll tunnel thruster

2 x 800 Hp Brunvoll tunnel thrusters + 1 x 1000 Hp Brunvoll tunnel thruster

5 x 1135 kW Caterpillar CAT3516 1800 RPM 60 Hz

3 x 340 kW Detroit Diesel S71 1800 RPM 60 Hz

1 x 260 kW Detroit Diesel S57 1800 RPM 60 Hz
	 	 	 
	Deck machinery:	 	 
	Crane

Mooring Equipment

(4 point mooring)	 	
1x Liebherr B10 / 2426, 10 t @ 2,5 — 22 m

2 x double drum Brattvaag hydraulic low pressure winches

60 t linepull @ 12,7 m/min; Length of wires 1000 m x 51mm diam. each
4 x 6 tons Anchors

	 	 	 	 	 
	Speed/Fuel consumption:	 	Full speed	 	abt 12 Knots, abt 23 tons gasoil x day
	 	 	Cruising	 	abt 10,5 Knots, abt 15 tons gasoil x day
	 	 	Economical speed	 	abt 9 Knots, abt 10 tons gasoil x day
	 	 	DP	 	abt 7 — 12 tons gasoil x day
	 	 	Stand-by	 	abt 2 tons gasoil x day

	 	 	 
	Dynamic Positioning System:	 	
Simrad SDP 21 (full redundancy) positioning system
	 	 	 
	Reference System:	 	
Simrad HiPAP and Taut Wire

	 	 
	G. MURRAY	
PAGE 1 OF 2

 

 

	 	 	 
	Interface:	 	
Dual DGPS
	 	 	 
	Accommodation:	 	
Total berths: 128 (12 single + 24 double cabins + 17 four
bed cabins) incl. crew

All cabins fitted with own facilities and air conditioning
	 	 	 
	Others:	 	
Helicopter deck       20,1 m diameter

Moon pool               7,6 x 6,1 m

Conference room    10 sqm

Offices                      50 sqm

On-off line                56 sqm

Gymnasium              35 sqm

Hospital                    16 sqm

Recreation rooms    65 sqm

Mess rooms            105 sqm

Helideck reception  16 sqm

Foundation for crane up to 300 tons

The vessel fully complies with the latest SOLAS requirements (2001)

DETAILS GIVEN IN GOOD FAITH BUT WITHOUT GUARANTEE

	 	 
	G. MURRAY	
PAGE 2 OF 2

 

 

	 	 	 
	ANNEX “B” to Uniform Time Charter Party for Offshore Service Vessels

Code Name: “SUPPLYTIME 89” — dated
	 	

INSURANCE

Insurance policies (as applicable) to be procured and maintained by the Owners under Clause 14:

	 	(1)	 	Marine Hull Insurance. — Hull and Machinery Insurance shall be provided with limits equal to those normally carried by the Owners for the Vessel.
	 
	 	(2)	 	Protection and Indemnity
(Marine Liability) Insurance. -Protection and Indemnity or Marine Liability insurance shall be provided for the Vessel with a limit equal to the value under paragraph 1 above or U.S. $5 million, whichever is greater, and shall include but not be limited to coverage for crew liability, third party bodily injury and property damage liability, including collision liability, towers liability (unless carried elsewhere).
	 
	 	(3)	 	General Third Party Liability Insurance. -Coverage shall be for:

	 	 
	Bodily Injury	                     per person.
	Property Damage 	                     per occurrence.

	 	(4)	 	Workmen’s Compensation and Employer’s Liability Insurance for Employees. -covering non-employees for statutory benefits as set out and required by local law in area of operation or area in which the Owners may become legally obliged to pay benefits.
	 
	 	(5)	 	Comprehensive General Automobile Liability Insurance. - Covering all owned, hired and non-owned vehicles coverage shall be for:

	 	 
	Bodily Injury	According to the local law.
	Property Damage 	In an amount
equivalent to                    

single limit per occurrence.

	 	(6)	 	Such other insurances as may be agreed.

 

	 	 	 
	ANNEX “C” to Uniform Time Charter Party for Offshore Service Vessels

Code Name: “SUPPLYTIME 89” — dated 31st May
2002
	 	

AGREEMENT FOR MUTUAL INDEMNITY AND WAIVER OF RECOURSE

(Optional, only applicable if stated in Box 28 in PART I)

     This Agreement is made between the Owners and the Charterers and is premised on
the following:

	 	(a)	 	The Charterers and the Owners have entered into a contract or
agreement dated as above regarding the performance of work or service in
connection with the Charterers’ operations offshore (“Operations”);
	 
	 	(b)	 	(b) The Charterers and the Owners have entered into, or shall enter
into, contracts or agreements with other contractors for the performance
of work or service in connection with the Operations;
	 
	 	(c)	 	Certain of such other contractors have signed, or may sign,
counterparts of this Agreement or substantially similar agreements
relating to the Operations (“Signatory” or collectively “Signatories”) ;
and
	 
	 	(d)	 	The Signatories wish to modify their relationship at common law and
avoid entirely disputes as to their liabilities for damage or injuries
to their respective property or employees;

In consideration of the premises and of execution of reciprocal covenants by
the other Signatories, the Owners agree that:

	 	1.	 	The Owners shall hold harmless, defend, indemnify and waive all
rights of recourse against the other Signatories and their respective
subsidiary and affiliate companies, employees, directors, officers,
servants, agents, invitees, vessel(s), and insurers, from and against
any and all claims, demands, liabilities or causes of action of every
kind and character, in favour of any person or party, for injury to,
illness or death of any employee of or for damage to or loss of property
owned by the Owners (or in possession of the Owners by virtue of an
arrangement made with an entity which is not a Signatory) which injury,
illness, death, damage or loss arises out of the Operations, and
regardless of the cause of such injury, illness, death, damage or loss
even though caused in whole or in part by a pre-existing defect, the
negligence, strict liability or other legal fault of other Signatories.
	 
	 	2.	 	The Owners (including the Vessel) shall have no liability whatsoever
for injury, illness or death of any employee of another Signatory under
the Owners’ direction by virtue of an arrangement made with such other
Signatory, or for damage to or loss of property of another Signatory in
the Owners’ possession by virtue of an arrangement made with such other
Signatory. In no event shall the Owners(including the Vessel) be liable
to another Signatory for any consequential damages whatsoever arising
out of or in connection with the performance or non-performance of this
Agreement, including, but not limited to, loss of use, loss of profits,
shut-in or loss of production and cost of insurance.

 

 

	 	3.	 	The Owners undertake to obtain from their insurers a waiver of rights
of subrogation against all other Signatories in accordance with the
provisions of this Agreement governing the mutual liability of the
Signatories with regard to the Operations.
	 
	 	4.	 	The Owners shall attempt to have those of their sub-contractors which
are involved in the Operations become Signatories and shall promptly
furnish the Charterers with an original counterpart of this Agreement or
of a substantially similar agreement executed by its sub-contractors.
	 
	 	5.	 	Nothing contained in this Agreement shall be construed or held to
deprive the Owners or the Charterers or any other Signatory as against
any person or party, including as against each other, of any right to
claim limitation of liability provided by any applicable law, statute or
convention, save that nothing in this Agreement shall create any right
to limit liability. Where the Owners or the Charterers or any other
Signatory may seek an indemnity under the provisions of this Agreement
as against each other in respect of a claim brought by a third party,
the Owners or the Charterers or any other Signatory shall seek to limit
their liability against such third party.
	 
	 	6.	 	The Charterers shall provide the Owners with a copy of every
counterpart of this Agreement or substantially similar agreement which
is executed by another Signatory pertaining to the Operations, and
shall, in signing this, and in every counterpart of this Agreement, be
deemed to be acting as agent or trustee for the benefit of all
Signatories.
	 
	 	7.	 	This Agreement shall inure to the benefit of and become binding on
the Owners as to any other Signatories on the later of the date of
execution by the Owners and the date of execution of a counterpart of
this Agreement or a substantially similar agreement by such other
Signatory pertaining to the Operations.
	 
	 	8.	 	Any contractor, consultant, sub-contractor, etc., performing work or
service for the Charterers or another Signatory in connection with the
Operations which has not entered into a formal contract for the
performance of such work or service may nevertheless become a Signatory
by signing a counterpart of this Agreement or a substantially similar
agreement which shall govern, as to the subject of this Agreement, the
relationship between such new Signatory and the other Signatories and
also by extension its relations with the Charterers.
	 
	 	9.	 	This Agreement may be executed in any number of counterparts or
substantially similar agreements as necessary but all such counterparts
shall together constitute one legal instrument.

 

 

	 
	Norwegian Shipbrokers’ Association’s Memo-

Random of Agreement for sale and purchase of

Ships. Adopted by The Baltic and International

Maritime Council (BIMCO) in 1956.
	                                Code-name

                          SALEFORM 1993

Revised 1966, 1983 and 1986/87.

ANNEX “D” to “SUPPLYTIME 89”

Dated 31st May 2002  —  Purchase Option Terms

MEMORANDUM OF AGREEMENT

Dated:

CABLE SHIPPING INC. MONROVA, LIBERIA or a company to be nominated by them

hereinafter called the Sellers, have agreed to sell, and

TORCH OFFSHORE L.L.C. New Orleans, USA.

hereinafter called the Buyers, have agreed to buy

Name: ‘G. MURRAY’ (T.B.N. ‘MIDNIGHT HUNTER’)

	 	 	 
	Classification Society/Class:

 Built:	 	
RINA C (Maltese Cross) Supply Vessel, Special Service (Research

Ship) — Unrestricted Navigation — (Maltese Cross) DYNAPOS AM/AT R

1978         By: FELS Singapore. Converted 2002 by Nauta, Gdynia, Poland

	 	 	 	 	 
	Flag:  St Vincent & the Grenadines

Call Sign:    J8B2242

Register Number:    8714	 	
Place of Registration:
Grt/Nrt:

	 	Kingstown

hereinafter called the Vessel, on the following terms and conditions:

Definitions

“Banking days” are days on which banks are open both in the country of the currency stipulated for the Purchase Price in Clause 1 and in the place of closing stipulated in Clause 8.

“In writing” or “written” means a letter handed over from the Sellers to the Buyers or vice versa, a registered letter, telex, telefax or other modern form of written communication.

“Classification Society” or “Class” means the Society referred to in line 4.

1. Purchase Price             See Clause 49 of SUPPLYTIME 89

2. Deposit

As security for the correct fulfilment of this Agreement the Buyers shall pay a deposit of 10 % (ten per cent) of the Purchase Price within 60 days from date of purchase option declaration. This deposit shall be placed with

(T.B.A.)

and held by them in a joint account for the Sellers and the Buyers, to be released in accordance with joint written instructions of the Sellers and the Buyers. Interest, if any, to be credited to the Buyers. Any fee charged for holding the said deposit shall be borne equally by the Sellers and the Buyers.

3. Payment

The said Purchase Price shall be paid in full free of bank charges to

(T.B.A.)

on delivery of the Vessel, but not later than 3 banking days after the Vessel is in every respect physically ready for delivery in accordance with the terms and conditions of this Agreement and Notice of Readiness has been given in accordance with Clause 5.

 

	4.	 	Inspections
	 
	a)	 	* The Buyers have not inspected and accepted the Vessel’s classification records. The Buyers have also inspected the Vessel at/in                      on 

and have accepted the Vessel following this inspection and the sale is outright and definite, subject only to the terms and conditions of this Agreement.
	 
	b)	 	* The Buyers shall have the right to inspect the Vessel’s classification records and declare whether same are accepted or not within
	 
	 	 	The Sellers shall provide for inspection of the Vessel aVin
	 
	 	 	The Buyers shall undertake the inspection without undue delay to the Vessel. Should the Buyers cause undue delay they shall compensate the Sellers for the losses thereby incurred. The Buyers shall inspect the Vessel without opening up and without cost to the Sellers. During the inspection, the Vessel’s deck and engine log books shall be made available for examination by the Buyers. If the Vessel is accepted after such inspection, the sale shall become outright and definite, subject only to the terms and conditions of this Agreement, provided the Sellers receive written notice of acceptance from the Buyers within 72 hours after completion of such inspection.
	 
	 	 	Should notice of acceptance of the Vessel’s classification records and of the Vessel not be received by the Sellers as aforesaid, the deposit together with interest earned shall be released immediately to the Buyers, whereafter this Agreement shall be null and void.
	 
	 	 	4 a) and 4b) are alternatives; delete whichever is not applicable. In the absence of deletions, alternative 4a) to apply.
	 
	5.	 	Notices, time and place of delivery
	 
	a)	 	The Buyers shall keep the Sellers well informed of the Vessel’s itinerary status and shall provide the Sellers with, 30/15/10/7/3/2, and one days notice of the estimated time of delivery at the intended place of drydocking/underwater inspection/delivery. When the Vessel is at the place of delivery and in every respect physically ready for delivery in accordance with this Agreement, the Sellers shall give the Buyers a written Notice of Readiness for delivery.
	 
	b)	 	The Vessel shall be delivered and taken over safely afloat at a safe and accessible berth or anchorage at/in wherever.
	 
	 	 	in the Buyers’ option.
	 
	 	 	Expected time of delivery: see clause 49 of SUPPLYTIME 89 Part II
	 
	 	 	Date of cancelling (see Clauses 5 c), 6 b) (iii) and 14): 30 days beyond expected time of delivery
	 
	c)	 	If the Sellers anticipate that, notwithstanding the exercise of due diligence by them, the Vessel will not be ready for delivery by the cancelling date they may notify the Buyers in writing stating the date when they anticipate that the Vessel will be ready for delivery and propose a new cancelling date. Upon receipt of such notification the Buyers shall have the option of either cancelling this Agreement in accordance with Clause 14 within 7 running days of receipt of the notice or of accepting the new date as the new cancelling date. If the Buyers have not declared their option within 7 running days of receipt of the Sellers’ notification or if the Buyers accept the new date, the date proposed in the Sellers’ notification shall be deemed to be the new cancelling date and shall be substituted for the cancelling date stipulated in line 61.
	 
	 	 	If this Agreement is maintained with the new cancelling date all other terms and conditions hereof including those contained in Clauses 5 a) and 5 c) shall remain unaltered and in full force and effect. Cancellation or failure to cancel shall be entirely without prejudice to any claim for damages the Buyers may have under Clause 14 for the Vessel not being ready by the original cancelling date. 

 

	d)	 	Should the Vessel become an actual, constructive or compromised total loss before delivery the deposit together with interest earned shall be released immediately to the Buyers whereafter this Agreement shall be null and void.
	 
	6.	 	Drydocking/Divers Inspection
	 
	a) **	 	The Sellers shall place the Vessel in drydock at the port of delivery for inspection by the Classification Society of the Vessel’s underwater parts below the deepest load line, the extent of the inspection being in accordance with the Classification Society’s rules. If the rudder, propeller, bottom or other underwater parts below the deepest load line are found broken, damaged or defective so as to affect the Vessel’s class, such defects shall be made good at the Sellers’ expense to the satisfaction of the Classification Society without condition/recommendation * .
	 
	b) **	 	(i) The Vessel is to be delivered without drydocking. However, the Buyers shall have the right at their expense to arrange for an underwater inspection by a diver approved by the Classification Society prior to the delivery of the Vessel. The Sellers shall at their cost make the Vessel available for such inspection. The extent of the inspection and the conditions under which it is performed shall be to the satisfaction of the Classification Society. If the conditions at the port of delivery are unsuitable for such inspection, the Sellers shall make the Vessel available at a suitable alternative place near to the delivery port.
	 	 	 
	 	 	(ii) If the rudder, propeller, bottom or other underwater parts below the deepest load line are found broken, damaged or defective so as to affect the Vessel’s class, then unless repairs can be carried out afloat to the satisfaction of the Classification Society, the Sellers shall arrange for the Vessel to be drydocked at their expense for inspection by the Classification Society of the Vessel’s underwater parts below the deepest load line, the extent of the inspection being in accordance with the Classification Society’s rules. If the rudder, propeller, bottom or other underwater parts below the deepest load line are found broken, damaged or defective so as to affect the Vessel’s class, such defects shall be made good by the Sellers at their expense to the satisfaction of the Classification Society without condition/recommendation*. In such event the Sellers are to pay also for the cost of the underwater inspection and the Classification Society’s attendance.
	 	 	 
	 	 	(iii) If the Vessel is to be drydocked pursuant to Clause 6 b) (ii) and no suitable dry- docking facilities are available at the port of delivery, the Sellers shall take the Vessel to a port where suitable drydocking facilities are available, whether within or outside the delivery range as per Clause 5 b). Once drydocking has taken place the Sellers shall deliver the Vessel at a port within the delivery range as per Clause 5 b) which shall, for the purpose of this Clause, become the new port of delivery. In such event the cancelling date provided for in Clause 5 b) shall be extended by the additional time required for the drydocking and extra steaming, but limited to a maximum of 14 running days.

 
	 
	c)	 	If the Vessel is drydocked pursuant to Clause 6 a) or 6 b) above
	 	 	 
	 	 	(i) the Classification Society may require survey of the tailshaft system, the extent of the survey being to the satisfaction of the Classification surveyor. If such survey is not required by the Classification Society, the Buyers shall have the right to require the tailshaft to be drawn and surveyed by the Classification Society, the extent of the survey being in accordance with the Classification Society’s rules for tailshaft survey and consistent with the current stage of the Vessel’s survey cycle. The Buyers shall declare whether they require the tailshaft to be drawn and surveyed not later than by the completion of the inspection by the Classification Society. The drawing and refitting of the tailshaft shall be arranged by the Sellers. Should any parts of the tailshaft system be condemned or found defective so as to affect the Vessel’s class, those parts shall be renewed or made good at the Sellers’ expense to the satisfaction of the Classification Society without condition/recommendation * .

 

	 	 	 	(ii) the expenses relating to the survey of the tailshaft system shall be borne by the Buyers unless the Classification Society requires such survey to be carried out, in which case the Sellers shall pay these expenses. The Sellers shall also pay the expenses if the Buyers require the survey and parts of the system are condemned or found defective or broken so as to affect the Vessel’s class*.
	 
	 	 	 	(iii) the expenses in connection with putting the Vessel in and taking her out of drydock, including the drydock dues and the Classification Society’s fees shall be paid by the Sellers if the Classification Society issues any condition/recommendation* as a result of the surveyor if it requires survey of the tailshaft system. In all other cases the Buyers shall pay the aforesaid expenses, dues and fees.
	 
	 	 	 	(iv) the Buyers’ representative shall have the right to be present in the drydock, but without interfering with the work or decisions of the Classification surveyor .
	 
	 	 	 	(v) the Buyers shall have the right to have the underwater parts of the Vessel cleaned and painted at their risk and expense without interfering with the Sellers’ or the Classification surveyor’s work, if any, and without affecting the Vessel’s timely delivery. If, however, the Buyers’ work in drydock is still in progress when the Sellers have completed the work which the Sellers are required to do, the additional docking time needed to complete the Buyers’ work shall be for the Buyers’ risk and expense. In the event that the Buyers’ work requires such additional time, the Sellers may upon completion of the Sellers’ work tender Notice of Readiness for delivery whilst the Vessel is still in drydock and the Buyers shall be obliged to take delivery in accordance with Clause 3, whether the Vessel is in drydock or not and irrespective of Clause 5 b).
	 
	 	 	 	Notes, if any, in the surveyor’s report which are accepted by the Classification Society without condition/recommendation are not to be taken into account.
	 
	 	 	 	6 a) and 6 b) are alternatives; delete whichever is not applicable. In the absence of deletions, alternative 6 a) to apply.

	 	 	7. Spares/bunkers, etc.
	 
	 	 	The Sellers shall deliver the Vessel to the Buyers with everything belonging to her on board and on shore. All spare parts and spare equipment including spare tail-end shaft(s) and/or spare propeller(s)/propeller blade(s), if any, belonging to the Vessel at the time of inspection used or unused, whether on board or not shall become the Buyers’ property, but spares on order are to be excluded. Forwarding charges, if any, shall be for the Buyers’ account. The Sellers are not required to replace spare parts including spare tail-end shaft(s) and spare propeller(s)/propeller blade(s) which are taken out of spare and used as replacement prior to delivery, but the replaced items shall be the property of the Buyers. The radio installation and navigational equipment shall be included in the sale without extra payment if they are the property of the Sellers. Unused stores and provisions shall be included in the sale and be taken over by the Buyers without extra payment.
	 
	 	 	The Sellers have the right to take ashore crockery, plates, cutlery, linen and other articles bearing the Sellers’ flag or name, provided they replace same with similar unmarked items. Library, forms, etc., exclusively for use in the Sellers’ vessel(s), shall be excluded without compensation. Captain’s, Officers’ and Crew’s personal belongings including the slop chest are to be excluded from the sale, as well as the following additional items (including items on hire):
	 
	 	 	The Buyers shall take
over the remaining bunkers and unused lubricating oils in storage tanks and sealed drums and pay the current net market price (excluding barging expenses) at the port and date of delivery of the Vessel.
	 
	 	 	Payment under this
Clause shall be made at the same time and place and in the same currency as the Purchase Price.

 

8. Documentation

The place of closing:

In exchange for payment of the Purchase Price the Sellers shall furnish the
Buyers with delivery documents, namely:

	 	a)	 	Legal Bill of Sale in a form recordable in (the country in which the Buyers are
to register the Vessel), warranting that the Vessel is free from all
encumbrances, mortgages and maritime liens or any other debts or claims
whatsoever, duly notarially attested and legalized by the consul of such country
or other competent authority.
	 
	 	b)	 	Current Certificate of Ownership issued by the competent authorities of the flag
state of the Vessel.
	 
	 	c)	 	Confirmation of Class issued within 72 hours prior to delivery.
	 
	 	d)	 	Current Certificate issued by the competent authorities stating that the Vessel
is free from registered encumbrances.
	 
	 	e)	 	Certificate of Deletion of the Vessel from the Vessel’s registry or other
official evidence of deletion appropriate to the Vessel’s registry at the time
of delivery, or, in the event that the registry does not as a matter of practice
issue such documentation immediately, a written undertaking by the Sellers to
effect deletion from the Vessel’s registry forthwith and furnish a Certificate
or other official evidence of deletion to the Buyers promptly and latest within
4 (four) weeks after the Purchase Price has been paid and the Vessel has been
delivered.
	 
	 	f)	 	Any such additional documents as may reasonably be required by the competent
authorities for the purpose of registering the Vessel, provided the Buyers
notify the Sellers of any such documents as soon as possible after the date of
this Agreement.

At the time of delivery the Buyers and Sellers shall sign and deliver to each
other a Protocol of Delivery and Acceptance confirming the date and time of
delivery of the Vessel from the Sellers to the Buyers.

At the time of delivery the Sellers shall hand to the Buyers the classification
certificate(s) as well as all plans etc., which are on board the Vessel. Other
certificates which are on board the Vessel shall also be handed over to the
Buyers unless the Sellers are required to retain same. At the time of delivery
the Buyers shall withhold the classification certificate(s) as well as all plans
etc., which are on board the Vessel. Other certificates which are on board the
Vessel shall also be withheld by the Buyers unless the Sellers are required to
retain the same, in which case the Buyers to have the right to take copies.

Other technical documentation which may be in the Sellers’ possession shall be
promptly forwarded to the Buyers at their expense, if they so request. The
Sellers may keep the Vessel’s log books but the Buyers to have the right to take
copies of same.

9. Encumbrances

     The Sellers warrant that the Vessel, at the time of delivery, is free from all
charters, encumbrances, mortgages and maritime liens or any other debts
whatsoever. The Sellers hereby undertake to indemnify the Buyers against all
consequences of claims made against the Vessel which have been incurred prior to
the time of delivery .

10. Taxes, etc

     Any taxes, fees and expenses in connection with the purchase and registration
under the Buyers’ flag shall be for the Buyers’ account, whereas similar charges
in connection with the closing of the Sellers’ register shall be for the
Sellers’ account.

 

	11.	 	Condition on delivery

The Vessel with everything belonging to her shall be at the Sellers’ risk and expense subject to the terms of the SUPPLYTIME 89, until she is delivered to the Buyers, but subject to the terms and conditions of this Agreement she shall be delivered and taken over as she was at the time of delivery under the SUPPLYTIME 89, fair wear and tear excepted.

However, the Vessel shall be delivered with her class maintained without condition/recommendation*, free of average damage affecting the Vessel’s class, and with her classification certificates and national certificates, as well as all other certificates the Vessel had at the time of inspection, valid and unextended without condition/recommendation* by Class or the relevant authorities at the time of delivery .

“Inspection” in this Clause
11, shall mean the Buyers’ inspection according to Clause
4 a) or 4 b), if applicable, or the Buyers’ inspection prior to
the signing of this Agreement. If the Vessel is taken over without
inspection, the date of this Agreement shall be the relevant
date.

Notes, if any, in the surveyor’s report which are accepted by the Classification Society without condition/recommendation are not to be taken into account.

The Vessel with everything belonging to her shall be at the Seller’s risk subject to the terms of the SUPPLYTIME 89 until she is delivered to the Buyers. However, the Vessel shall be delivered as she is and lays.

	12.	 	Name/markings

Upon delivery the Buyers undertake to change the name of the Vessel and alter funnel markings.

	13.	 	Buyers’ default

Should the deposit not be paid in accordance with Clause 2, the Sellers have the right to cancel this Agreement, and they shall be entitled to claim compensation for their losses and for all expenses incurred together with interest.

Should the Purchase Price not be paid in accordance with Clause 3, the Sellers have the right to cancel the Agreement, in which case the deposit together with interest earned shall be released to the Sellers. If the deposit does not cover their loss, the Sellers shall be entitled to claim further compensation for their losses and for all expenses incurred together with interest.

	14.	 	Sellers’ default

Should the Sellers fail to give Notice of Readiness in accordance with Clause 5 a) or fail to be ready to validly complete a legal transfer by the date stipulated in line 61 the Buyers shall have the option of cancelling this Agreement provided always that the Sellers shall be granted a maximum of 3 banking days after Notice of Readiness has been given to make arrangements for the documentation set out in Clause 8. If after Notice of Readiness has been given but before the Buyers have taken delivery, the Vessel ceases to be physically ready for delivery and is not made physically ready again in every respect by the date stipulated in line 61 and new Notice of Readiness given, the Buyers shall retain their option to cancel. In the event that the Buyers elect to cancel this Agreement the deposit together with interest earned shall be released to them immediately.

Should the Sellers fail to give Notice of Readiness by the date stipulated in line 61 or fail to be ready to validly complete a legal transfer as aforesaid they shall make due compensation to the Buyers for their loss and for all expenses together with interest if their failure is due to proven negligence and whether or not the Buyers cancel this Agreement.

	15.	 	Buyers’ representatives

After this Agreement has been signed by both parties and the deposit has been lodged, the Buyers have the right to place two representatives on board the Vessel at their sole risk and expense upon arrival at on or about
These representatives are on board for the purpose of familiarisation and in the capacity of observers only, and they shall not interfere in any respect with the operation of the Vessel. The Buyers’ representatives shall sign the Sellers’ letter of indemnity prior to their embarkation.

 

 

	16.	 	Arbitration
	 
	a)* 	 	This Agreement shall be governed by and construed in accordance with English law and any dispute arising out of this Agreement shall be referred to arbitration in London in accordance with the Arbitration Acts 1950 and 1979 or any statutory modification or re-enactment thereof for the time being in force, one arbitrator being appointed by each party. On the receipt by one party of the nomination in writing of the other party’s arbitrator, that party shall appoint their arbitrator within fourteen days, failing which the decision of the single arbitrator appointed shall apply. If two arbitrators properly appointed shall not agree they shall appoint an umpire whose decision shall be final.
	 
	b)*	 	This Agreement shall be governed by and construed in accordance with Title 9 of the United States Code and the Law of the State of New York and should any dispute arise out of this Agreement, the matter in dispute shall be referred to three persons at New York, one to be appointed by each of the parties hereto, and the third by the two so chosen; their decision or that of any two of them shall be final, and for purpose of enforcing any award, this Agreement may be made a rule of the Court.
The proceedings shall be conducted in accordance with the rules of the Society of Maritime Arbitrators, Inc. New York.
	 
	c)*	 	Any dispute arising out of this Agreement shall be referred to arbitration at
                      , subject to the procedures applicable there. The laws of shall govern this Agreement.
	 
	 	 	16 a), 16 b) and 16 c) are alternatives; delete whichever is not applicable. In the absence of deletions, alternative 16 a) to apply.

 

 

ANNEX “E” to Uniform Time Charter Party for Offshore Service Vessels

Code name: “SUPPLYTIME89” — dated 31st May 2002

G. MURRAY/TORCH OFFSHORE LLC

(Bankers headed-paper)

Date...........

Cable shipping Inc.

80 Broad Street

Monrovia — Liberia

Dear Sirs,

On Demand Guarantee for Payment

under “Supplytime 89” Charter Party

dated 31st May 2002.

WHEREAS, TORCH OFFSHORE, L.L.C., 401 Whitney Avenue, Suite 400, Gretna — Louisiana
70056, USA (Hereafter called “Charters”) has undertaken to make payments for hire
to Cable Shipping Inc.l of 80 Broad Street, Morovia, Liberia, as owners of ‘G. MURRAY’
pursuant to the above Charter Party:

AND WHEREAS it has been agreed by Charterers in the above referenced Charter Party that it
shall furnish Cable Shipping Inc. with an on demand bank guarantee by a first class bank in
the usm of US$ 1,500,000.00 for the first 365 days of the charter, reduced to US$ 1,000,000.00
for the second 365 days of the charter as security for the obligations of Charterers under the
Charter Party.

AND WHEREAS we have agreed to provide such on demand bank guarantee to your at the request of Charterers.

THEREFORE WE, Regions Bank, 301 St. Charles Ave, New Orleans, Louisiana 70130
hereby at the request of Chartereres irrevocably undertake to pay you without
limitation, without delay and without any withholdings or deductions and without proof or
conditions, on receipt of your first written demand (by fax or by letter) stating
that the Charterers have failed to pay hire in terms of the Charter Party, the sum of
US$1,500,000.00 (One million and Five hundred thousand US Dollars) through (insert actual date),
US$ 1,000,000.00 (One million US Dollars) through (insert actual date), US$ 500,000.00 (Five
hundred thousand US Dollars) through (insert actual date).

1

 

This Guarantee:

	 	(a)	 	shall be governed by and construed in accordance with English law and we
irrevocably submit to the exclusive jurisdiction of the Engish courts for
all suits against the Bank arising out of or in-connection herewith;
	 
	 	(b)	 	shall expire and cease to be of any further force or effect at our close of
business in London on 31st December 2005, unless extended by us in writing to
a later fixed date.

For and on behalf of

(Bank)............................

By:...(Signatory).................

Position:.........................

2<PAGE>
                                AMMENDMENT No. 1
                               DATED 25 JUNE 2002

                                       TO

                      "SUPPLYTIME 89" -- DATED 31 MAY 2002
                WITH RESPECT TO "G MURRAY" TBN "MIDNIGHT HUNTER"

It is hereby agreed that Torch Offshore Inc., 401 Whitney Avenue, Suite 400,
Gretna, Louisiana, USA, guarantee as primary obligors the Charterers
performance with respect to all obligations, terms and conditions of the above
Charter Party.

        /s/  [ILLEGIBLE]                        /s/ WILLIAM J. BLACKWELL
----------------------------------         ------------------------------------
       CABLE SHIPPING INC.                        TORCH OFFSHORE INC.

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