Document:

exv10w30

 

EXHIBIT 10.30

CHARTERPARTY NO.
102.18.12

[PORTUGUESE TRANSLATION OMITTED]

FORM OF AGREEMENT

THIS CHARTERPARTY is made effective as of the
31st day of July 2002 (hereinafter the “Effective
Date”)

BETWEEN

	(1)  	ENTERPRISE OIL DO BRASIL LIMITADA whose registered office is at Praia do
Botafogo 440-22° Andar, Botafogo, Rio de Janeiro, RJ 22250-040 Brazil, CNPJ#
02.715.280/0001-79, represented by its Project Director Mr R Bryans, and

	(2)  	GULF MARINE [SERVIÇOS
MARITIMOS] DO BRASIL LIMITADA whose registered office
is at Rua Americo Peixoto, 120 Macaé, Rio de Janeiro, RJ 27913-310, Brasil,
CNPJ#40.180.812/0001-80, represented by Mr Arnaldo Ferreira Leite Jr.

WHEREAS

	A)  	     Enterprise, Enterprise Bijupira-Salema
Limitada and Petroleo Brasileiro S.A.-Petrobras
are parties to two (2) concession contracts
(hereinafter “the Concession Contracts”) for the
exploration, development and production of oil
and natural gas covering the Bijupira and Salema
fields located in the Campos Basin offshore
Brazil; and
	 
	B)  	     Enterprise, Enterprise Bijupira-Salema
Limitada and Petroleo Brasileiro S.A.-Petrobras
have entered into a consortium agreement
(hereinafter “the Consortium Agreement”) and
joint operating agreement setting forth their rights
and liabilities under the Concession Contracts and
under which agreements Enterprise has been
designated as leader and operator for the
development of the Bijupira and Salema fields.

WHEREBY IT IS AGREED by the parties
(hereinafter “Party or “Parties”) as follows:

	1.  	“Charterparty” means the following documents which are hereby attached to and made a part
thereof and which may be from time to time
supplemented or amended in accordance with the applicable provisions hereof:

	 	(a)  	this Form of Agreement (including the
recital)
	 
	 	(b)  	“General Terms and Conditions”
	 
	 	(c)  	Schedule I “Vessel Specifications”
	 
	 	(d)  	Schedule II “Compensation”
	 
	 	(e)  	Schedule III “Administration Procedures”

 

 

CHARTERPARTY NO.
102.18.12

	   	In the event of any ambiguity, inconsistency or conflict between these documents they
shall take precedence in the order listed above.
	 
	2.  	“Enterprise” means Enterprise Oil do Brasil
Limitada, acting in its capacity as leader and
operator for and on behalf of itself and the
Consortium Members, its successor(s) in interest,
its assignee(s) or the assignees of such
successor(s) in interest.
	 
	3.  	“Owners” means Gulf Marine
(Serviços
Maritimos] do Brasil Limitada, the successor in
interest of that company, the permitted assignee
of that company or such successor in interest.
	 
	4.  	For all purposes of this Charterparty, except as
may otherwise expressly be provided herein or
unless the context otherwise requires, the terms
defined in this Form of Agreement and the
General Terms and Conditions shall have the meanings assigned to them in this Form of
Agreement and the General Terms and Conditions and shall include the plural as well as the
singular. All references to any Article, Clause or Schedule shall be references to an
Article, Clause or Schedule (as the case may be) of or to this Charterparty.
	 
	5.  	Unless sooner terminated in accordance with the
terms hereof, this Charterparty shall continue in
full force and effect until completion of the
Charter or any extension thereto.
	 
	6.  	In accordance with the terms and conditions of
this Charterparty Owners shall let and Enterprise
shall hire the Vessel and Enterprise shall pay
Owners the Hire.
	 
	7.  	This Charterparty constitutes the entire agreement between the Parties with respect
to the subject matter.
	 
	8.  	This Charterparty supercedes any and all prior or
contemporaneous negotiations, understandings,
agreements or representations (including any
made negligently but excluding any made
fraudulently), in each case whether written or
oral, with respect to the subject matter.
	 
	9.  	This Charterparty shall be varied or amended
only by an instrument in writing of a date
subsequent hereto signed by each Party or its duly
authorised representative.

 

 

CHARTERPARTY NO. 102.18.12

	10.  	Owners accept and agree that due to this
Agreement a contractual relationship will be
established between Enterprise and Owners, in
which, in any case, do not participate any of the
Consortium members.
	 
	11.  	This Form of Agreement is made in two (2)
originals, each with an English and Portuguese
language text.
	 
	   	Schedule I is made in two originals, both in the English Language
	 
	   	All other documents comprising this Charterparty
are made in four (4) originals, two (2) in the
English language and two (2) in the Portuguese
language. In the event of any ambiguity,
inconsistency or conflict between the English text
and Portuguese text, the former text shall prevail.

IN WITNESS WHEREOF the Parties have executed and delivered this Charterparty as of the date
first above written, in the presence of the undersigned witnesses.

	 	 	 
	SIGNED by

	 	SIGNED by

	 
	/s/ R.A. Bryans
	 	/s/ [ILLEGIBLE]

	for and on behalf of
	 	for and on behalf of

	Enterprise Oil do Brasil Limitada
	 	Gulf
Marine (Serviços Maritimos) do Brasil Limitada

	 
	DATE
	 	DATE

	 
	31st July 2002
	 	31 of July 2002

	 
	WITNESSED by

/s/ M.P. CULPIN
	 	WITNESSED by

/s/ BRIAN SHIELD

	 
	 	 

	 
	NAME M.P. CULPIN
	 	NAME BRIAN SHIELD

	 
	 	 

	 
	DATE 31st July 2002
	 	DATE 31st
July 2002

	
	 	 

 

CHARTERPARTY NO.
102.18.12

GENERAL TERMS AND
CONDITIONS

CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE
	ARTICLE 1

	 	DEFINITIONS AND INTERPRETATIONS
	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE 2

	 	PERIOD, EMPLOYMENT AND AREA OF OPERATION
	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE 3

	 	LANGUAGE
	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE 4

	 	DELIVERY/REDELIVERY OF THE VESSEL
	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE 5

	 	ACCEPTANCE
	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE 6

	 	DESCRIPTION AND CONDITION OF VESSEL
	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE 7

	 	REPRESENTATION AND WARRANTIES
	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE 8

	 	HIRE AND PAYMENTS
	 	 	10	 
	 
	 	 	 	 	 	 
	ARTICLE 9

	 	SCHEDULED MAINTENANCE AND DRYDOCKING
	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE 10

	 	RECORDS AND AUDIT
	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE 11

	 	TAXATION
	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE 12

	 	OFF-HIRE
	 	 	13	 
	 
	 	 	 	 	 	 
	ARTICLE 13

	 	OWNERS OR ENTERPRISE TO PROVIDE
	 	 	14	 
	 
	 	 	 	 	 	 
	ARTICLE 14

	 	MASTER AND CREW
	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE 15

	 	ADDITIONAL EQUIPMENT
	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE 16

	 	COMMUNICATIONS
	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE 17

	 	TWENTY-FOUR HOUR OPERATIONS
	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE 18

	 	ISM CLAUSE
	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE 19

	 	DEMISE
	 	 	17	 
	 
	 	 	 	 	 	 
	ARTICLE 20

	 	CONFIDENTIALITY & INTELLECTUAL PROPERTY RIGHTS
	 	 	17	 
	 
	 	 	 	 	 	 
	ARTICLE 21

	 	PUBLICITY
	 	 	17	 
	 
	 	 	 	 	 	 
	ARTICLE 22

	 	NOT USED
	 	 	18	 
	 
	 	 	 	 	 	 
	ARTICLE 23

	 	VESSEL ALTERATIONS & ADDITIONAL EQUIPMENT
	 	 	18	 
	 
	 	 	 	 	 	 
	ARTICLE 24

	 	PASSENGERS
	 	 	18	 
	 
	 	 	 	 	 	 
	ARTICLE 25

	 	INSPECTION DURING THE CONSTRUCTION PERIOD
	 	 	19	 
	 
	 	 	 	 	 	 
	ARTICLE 26

	 	ENTERPRISE’S RIGHT TO INSPECT DURING THE CHARTER
PERIOD
	 	 	19	 

Page 2

 

CHARTERPARTY
NO.102.18.12

	 	 	 	 	 	 	 
	ARTICLE 27

	 	PURCHASE AND MANAGEMENT OPTION
	 	 	20	 
	 
	 	 	 	 	 	 
	ARTICLE 28

	 	ENTERPRISE’S REPRESENTATIVES
	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE 29

	 	ENTERPRISE’S INSIGNIA
	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE 30

	 	CARGO
	 	 	22	 
	 
	 	 	 	 	 	 
	ARTICLE 31

	 	LAY UP
	 	 	22	 
	 
	 	 	 	 	 	 
	ARTICLE 32

	 	REQUISITION
	 	 	22	 
	 
	 	 	 	 	 	 
	ARTICLE 33

	 	WAR
	 	 	22	 
	 
	 	 	 	 	 	 
	ARTICLE 34

	 	EXCLUDED PORTS/ICE
	 	 	23	 
	 
	 	 	 	 	 	 
	ARTICLE 35

	 	TERMINATION
	 	 	23	 
	 
	 	 	 	 	 	 
	ARTICLE 36

	 	GENERAL INDEMNIFICATION
	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE 37

	 	INSURANCE
	 	 	29	 
	 
	 	 	 	 	 	 
	ARTICLE 38

	 	GENERAL AVERAGE
	 	 	31	 
	 
	 	 	 	 	 	 
	ARTICLE 39

	 	INDEPENDENT CONTRACTOR
	 	 	31	 
	 
	 	 	 	 	 	 
	ARTICLE 40

	 	SHIPS DOCUMENTS
	 	 	32	 
	 
	 	 	 	 	 	 
	ARTICLE 41

	 	HEALTH, SAFETY AND ENVIRONMENT
	 	 	32	 
	 
	 	 	 	 	 	 
	ARTICLE 42

	 	LIEN
	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE 43

	 	SALVAGE
	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE 44

	 	NOT USED
	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE 45

	 	SUB-CHARTER
	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE 46

	 	PROPRIETARY INFORMATION
	 	 	34	 
	 
	 	 	 	 	 	 
	ARTICLE 47

	 	ASSIGNMENTS AND SUB-CONTRACTS
	 	 	34	 
	 
	 	 	 	 	 	 
	ARTICLE 48

	 	FORCE MAJEURE
	 	 	35	 
	 
	 	 	 	 	 	 
	ARTICLE 49

	 	NON-WAIVER
	 	 	35	 
	 
	 	 	 	 	 	 
	ARTICLE 50

	 	NOTICES AND REPRESENTATIVES
	 	 	35	 
	 
	 	 	 	 	 	 
	ARTICLE 51

	 	COMMISSION
	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE 52

	 	ENTIRE AGREEMENT
	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE 53

	 	GOVERNING LAW
	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE 54

	 	ARBITRATION
	 	 	36	 
	 
	 	 	 	 	 	 
	ATTACHMENT 1 - MEMORANDUM OF AGREEMENT	 	 	38	 
	 
	 	 	 	 	 	 
	ATTACHMENT 2 - LETTER OF QUIET ENJOYMENT	 	 	39	 

	 	 	 
	 	Page 3	General Terms and Conditions

 

CHARTERPARTY NO. 102.18.12 

ARTICLE 1 DEFINITIONS AND INTERPRETATIONS

	1.1  	“Affiliates Of Enterprise” means N.V. Koninklijke Nederlandsche Petroleum Maatschappij,
a Netherlands company, The “Shell” Transport and Trading Co. p.l.c, an English company and
any company other than Enterprise which is for the time being directly or indirectly
affiliated with these two companies or either of them.
	 
	   	For the purpose of this definition and the definition of Affiliate Of Owners, a
particular company is:

	 	(i)  	directly affiliated with a company or companies if the latter beneficially
hold 50% (fifty per cent) or more of the shares carrying the right to vote at a
general meeting (or its equivalent) of the particular company, and
	 
	 	(ii)  	indirectly affiliated with a company or companies (“the parent company
or companies”) if a series of companies can be specified beginning with the parent
company or companies and ending with the particular company, so related that each
company of the series, except the parent company or companies, is directly affiliated
with one or more companies earlier in the series.

“Affiliate Of Owners” means, a company or corporation that is directly or indirectly affiliated
with Owners.

“Charter” means the period of hire, including off-hire periods, initially of the Interim Vessel and
subsequently of the Newbuild Vessel in accordance with the terms of this Charterparty.

“Consortium Members” means all the consortium members (including where applicable Enterprise in its
capacity as a concession holder and not as leader and operator) holding interests under or in
respect of the Concession Contracts and the Consortium Agreement (“the Concessions”), where
operations hereunder are conducted in connection with the exploitation of rights granted by the
Concessions, in their capacities as holders of the Concessions and holders of such rights.

“Hire” means the daily rate of hire payable to Owners by Enterprise in accordance with the
provisions of Article 8.

“Interim Vessel” means the M.V. North Crusader provided by Owners and hired to Enterprise in
accordance with the provisions of this Charterparty.

“Interim Vessel Delivery Date” shall mean the date and time at which Enterprise accepts the Interim
Vessel on hire.

“Newbuild Vessel” means the newbuild vessel constructed by Owners and hired to Enterprise in
accordance with the provisions of this Charterparty.

“Newbuild Vessel Delivery Date” shall mean the date and time at which Enterprise accepts the
Newbuild Vessel on hire.

	 	 	 	 	 
	

	 	Page 4
	 	General Terms and Conditions

 

 

CHARTERPARTY NO. 102.18.12

“Reservoir” means any accumulation of hydrocarbons, the existence, appraisal or development of, or
production from which involves the operations hereunder.

“Site Rules” means those work, administration and safety guidelines, procedures, rules and
standards developed, adopted or accepted by Enterprise or its Affiliates for use by Enterprise and
its contractors in respect of Enterprise’s operations hereunder. If Owners are required, or
require, to access any Enterprise or its Affiliates computer system then Site Rules shall include
Enterprise’s or its Affiliates Corporate IT Standards.

“Vessel” means the Interim Vessel and/or the Newbuild Vessel together with associated equipment,
the description and specifications of which are attached to and form part of this Charterparty.

	1.2.  	Article headings are inserted for convenience only and shall be ignored for the purposes of
construction or interpretation.
	 
	1.3  	Any reference to any statute or statutory instrument in this Charterparty shall be a
reference to the same as amended, supplemented or re-enacted from time to time.
	 
	1.4  	Enterprise enters into this Charterparty on behalf of all the Consortium Members but
notwithstanding this fact Enterprise shall be entitled to enforce this Charterparty on behalf
of all the Consortium Members and Enterprise’s Personnel (as defined in Article 36) and for
this purpose Enterprise may proceed in its own name to enforce all obligations and liabilities
of Owners and rights of the Consortium Members and Enterprise’s Personnel under this
Charterparty and to make any claim which any Consortium Member and Enterprise’s Personnel (as
defined in Article 36) may have against Owners arising under this Charterparty.

ARTICLE 2 PERIOD, EMPLOYMENT AND AREA OF OPERATION

	2.1  	Unless otherwise terminated earlier in accordance with the provisions of this Charterparty,
Owners let and Enterprise hire the Interim Vessel and the Newbuild Vessel consecutively for a
period of five years from the Interim Vessel Delivery Date. Enterprise shall have the right to
extend the Charter period for periods up to 13 years in total. Enterprise may exercise its
right on any number of occasions and for any length of extension but shall give Owners notice
of each extension requirement at least 90 days prior to the end of the then current Charter
period.
	 
	2.2  	The Vessel shall be employed, in accordance with Enterprise’s instructions, for the purpose
of providing multi-functional roles including tanker assist, supply duties and ROV Support
operations and shall also perform any other duties within the capabilities of the Vessel as
Enterprise may direct. The Vessel shall operate in the waters offshore Brazil and
specifically in support of the Bijupira and Salema field developments. Should Enterprise wish
the Vessel to operate in an area outside that specified above, it shall have the right to
instruct Owners accordingly provided that the area in question is within Institute Warranty
Limits. Enterprise shall be responsible only for actual additional costs incurred by Owners
specifically as a result of the change in area of operation.
	 
	2.3  	When the Vessel is not engaged in operations for Enterprise it shall be stationed at a
location to be determined by Enterprise.

	 	 	 	 	 
	

	 	Page 5
	 	General Terms and Conditions

 

 

CHARTERPARTY NO. 102.18.12

	2.4  	Owners shall provide and maintain an onshore base, located in
Macaé, Rio de Janeiro State,
such that full management, technical support and maintenance capability is available at all
times in support of the Vessel.

ARTICLE 3 LANGUAGE

All discussion, notices, communications and other proceedings in respect of this Charterparty and
the hire of the Vessel shall be in the English language.

ARTICLE 4 DELIVERY/REDELIVERY OF THE VESSEL

	4.1  	The Charter shall commence on the Interim Vessel Delivery Date and, unless the Charter is
suspended or terminated earlier in accordance with the terms hereof, shall continue up until
redelivery of the Newbuild Vessel in accordance with Article 4.3.
	 
	4.2  	DELIVERY
	 
	4.2.1  	The Interim Vessel shall be delivered to Enterprise by Owners at a date to be determined by
Enterprise and expected to be in the second half of 2003. The Interim Vessel shall be delivered
free of cargo and with clean cargo tanks, bunkered for thirty days operations and with a Master and
a full complement of officers and crew alongside Enterprise’s nominated berth in Brasil (or such
other place as may be agreed upon by the Parties) where the Vessel can safely lie always afloat.
	 
	4.2.2  	Enterprise shall advise Owners of the planned Interim Vessel Delivery Date by giving Owners
notice as follows of the delivery window period within which the Interim Vessel Delivery Date
is required:

	 	 	 
	Notice period	 	Delivery Window
	6 months

	 	2 months
	3 months

	 	1 month
	2 months

	 	1 week
	1 month

	 	1 day

Notice period shall be prior to the commencement of the delivery window. Each delivery
window shall fall within the preceding delivery window.

	4.2.3  	The Newbuild Vessel shall be delivered to Enterprise by Owners on or before the planned
Newbuild Vessel Delivery Date of August 31st 2004. The Newbuild Vessel shall be delivered
free of cargo and with clean cargo tanks, bunkered for thirty days operations and with a
Master and a full complement of officers and crew alongside Enterprise’s nominated berth in
Brasil (or such other place as may be agreed upon by the Parties) where the Vessel can safely
lie always afloat.
	 
	4.3  	REDELIVERY
	 
	4.3.1  	The Interim Vessel shall be redelivered to Owners by Enterprise on the Newbuild Delivery
Date, or earlier in the event of suspension or termination of the Charter. The

	 	 	 	 	 
	

	 	Page 6
	 	General Terms and Conditions

 

 

CHARTERPARTY NO. 102.18.12

Interim Vessel shall be redelivered with clean cargo tanks alongside Enterprise’s nominated
berth (or such other place as shall be agreed upon by the Parties) where the Vessel can safely
lie always afloat in the same condition as when delivered to Enterprise (fair wear and tear
excepted).

	4.3.2	The Newbuild Vessel shall be redelivered to Owners by Enterprise at the end of the Charter,
or earlier in the event of suspension or termination of the Charter, with clean cargo tanks
alongside Enterprise’s nominated berth (or such other place as shall be agreed upon by the
Parties) where the Vessel can safely lie always afloat in the same condition as when
delivered to Enterprise (fair wear and tear excepted). Enterprise shall give not less than 30
days notice in writing to Owners of the date it intends to redeliver the Newbuild Vessel.

ARTICLE 5 ACCEPTANCE

	5.1  	INTERIM VESSEL
	 
	5.1.1  	Prior to acceptance of the Interim Vessel by Enterprise Owners shall carry out, at their own
cost, any maintenance work, repairs or upgrades deemed necessary, by Enterprise, for the
Interim Vessel:

	 	a)  	to meet the requirements of the Interim Vessel specification included in
Schedule I;
	 
	 	b)  	to achieve the same condition as when initially inspected and accepted by
Enterprise prior to the Effective Date; and
	 
	 	c)  	to meet any requirements set out in this Charterparty as preconditions for
acceptance of the Interim Vessel.

	5.1.2  	Prior to acceptance of the Interim Vessel by Enterprise Owners shall satisfy Enterprise that
they have an onshore base staffed and equipped to support the operation of the Interim Vessel
with procedures for the management, maintenance, crewing and operation of the Interim
Vessel in place.
	 
	5.1.3  	Within three weeks prior to commencement of mobilisation for service in Brazil Owners shall
arrange for the Interim Vessel to be made available for inspection by Enterprise. The Interim
Vessel shall be made available alongside, and free of cargo, in an international port for a
period of 24 hours and no less than three days notice of the inspection port and date shall be
given by Owners to Enterprise.
	 
	5.1.4  	Enterprise shall have the right not to accept the Interim Vessel if it does not meet the
requirements of this Charterparty when offered to Enterprise for acceptance in Brasil.
Enterprise may, at its sole discretion, accept the Interim Vessel if it does not meet the
requirements of this Charterparty, and in such event shall state a date by which all
outstanding defects or shortcomings are to be remedied by Owners.
	 
	5.2  	NEWBUILD VESSEL
	 
	5.2.1  	Owners shall notify Enterprise when they consider
that the Newbuild Vessel, in accordance with the terms of
this Charterparty:

	 	 	 	 	 
	

	 	Page 7
	 	General Terms and Conditions

 

 

CHARTERPARTY NO. 102.18.12

	 	a)  	has been completed in full compliance with the requirements of Schedule
I and has in all respects satisfied Owners as to its completeness, its performance
and its fitness for purpose;
	 
	 	b)  	has on board, and with copies at Owner’s onshore base, all operating
manuals, maintenance and commissioning records, certificates, evidence of insurance
and other documentation necessary for the Newbuild Vessel to carry out the
operations required hereunder in Brazilian waters;
	 
	 	c)  	has been admitted to Brazilian Registry and all importation
formalities, documentation and, if applicable, bond requirements have been
satisfied;
	 
	 	d)  	has on board, and with copies at Owners’ onshore base, documented
details of crew members and their qualifications;
	 
	 	d)  	has on board stores, consumables and bunkers for thirty days operations;
	 
	 	f)  	has on board, or ready to board, the Master, officers and crew intended for long term
operational service on the Newbuild Vessel, all of whom are familiar with the operation of the
Newbuild Vessel and its equipment for the carrying out of operations required under this
Charterparty; and
	 
	 	g)  	is fully supported by Owners’ onshore base staffed and equipped to
support the operation of the Newbuild Vessel with procedures for the
management, maintenance, crewing and operation of the Newbuild Vessel in place..

	5.2.2  	Upon receipt of Owners’ notice given under Article 5.2.1 Enterprise shall within
five days notify Owners of acceptance, non-acceptance or conditional acceptance of the
Newbuild Vessel.
	 
	5.2.3  	If Enterprise does not accept the Newbuild Vessel then Enterprise shall, within
the period for acceptance, notify Owners of the matters to be addressed in order that
Enterprise can accept the Newbuild Vessel or of the earliest date by which such matters
will be detailed and notified to Owners.
	 
	5.2.4  	If Enterprise gives conditional acceptance of the Newbuild Vessel then Enterprise shall,
within the period for acceptance, notify Owners of the matters to be addressed in order that
Enterprise can fully accept the Newbuild Vessel and the date by which all such matters shall
have been addressed to Enterprise’s satisfaction. Owners shall address such matters, and
obtain Enterprise’s acceptance thereof, by the date specified by Enterprise. If all matters
are thus addressed satisfactorily and accepted by Enterprise then the Newbuild Vessel shall be
deemed to have been accepted by Enterprise on the date that Enterprise’s conditional
acceptance was given. If there remain outstanding matters still to be addressed then
Enterprise shall notify Owners of non-acceptance or further conditional acceptance of the
Newbuild Vessel and the procedure for acceptance set out in Article 5.2.3 or if applicable
this Article 5.2.4 shall be adopted.

	 	 	 	 	 
	

	 	Page 8
	 	General Terms and Conditions

 

 

CHARTERPARTY NO. 102.18.12 

ARTICLE 6 DESCRIPTION AND CONDITION OF VESSEL

	6.1  	Owners shall provide an Interim Vessel and a Newbuild Vessel which shall be of the
descriptions set out in Schedule I. Owners shall not deviate from such descriptions
without the prior consent of Enterprise.
	 
	6.2  	Where, in respect of the Newbuild Vessel Schedule I provides for alternative or
equivalent specifications or items of equipment to be used, then Owners shall adopt the
most specific requirements of Schedule I and shall not adopt alternatives or equivalents
without the prior written consent of Enterprise to the alternative or equivalent
proposed.
	 
	6.3  	The Vessels shall be delivered in Brazilian Special Registry, REB, and thereafter
maintained in Brazilian Special Registry, REB, until redelivery.
	 
	6.4  	With respect to the Interim Vessel, Owners and Enterprise shall jointly appoint an
independent surveyor for the purpose of determining and agreeing in writing, the
condition of the Interim Vessel, and the quality and quantity of fuel, lubricants and
water at the time of acceptance and redelivery hereunder. Owners and Enterprise shall
jointly, share the time and expense of such surveys. The independent surveyor shall not
be empowered to accept the Interim Vessel on behalf of Enterprise.
	 
	6.5  	Owners shall make and keep the Vessels in every way fit for service in accordance
with Article 2 in all weather and working conditions with her hull, machinery and
equipment in such a state as to obtain the most economic working thereof and planned
maintenance schedules up to date at all times.
	 
	6.6  	The Newbuild Vessel shall be classed as DNV Class +1A1, Tug, SF, EO, FiFil, Dynpos
AUTR, Oil Recovery; or equivalent classification within the International Association
of Classification Societies (IACS) and shall be fully maintained in Class and remain
seaworthy and fit for purpose from the Newbuild Vessel Delivery Date until the end of the
Charter.
	 
	6.7  	Owners shall ensure that the Vessel’s tanks containing bulk cargo, fuel and potable
water are kept clean and free from contamination prior to the period of the Charter.

ARTICLE 7 REPRESENTATION AND WARRANTIES

Owners represent and undertake:

	a)  	that they have executed a newbuilding contract for the construction of the Newbuild
Vessel, to the requirements of this Charterparty, in a Brazilian shipyard for delivery to
meet the planned Newbuild Vessel Delivery Date set out in Article 4.2.3.
	 
	b)  	that the Interim Vessel and the Newbuild Vessel shall be, at the commencement and
throughout their respective periods of Hire, in all respects in a seaworthy condition
appropriate for their intended use in accordance with Article 2, and having all
certificates (including, if applicable, temporary importation documentation) as may be
required by applicable laws and regulations and that all such certificates shall be
maintained valid throughout the Charter;

	 	 	 	 	 
	

	 	Page 9
	 	General Terms and Conditions

 

 

CHARTERPARTY NO. 102.18.12

	c)  	that no other person or corporation has any right, title or interest in or to the
Vessel or any of its machinery or equipment or any lien, mortgage or encumbrance thereon,
except as may have been specifically notified to Enterprise in writing prior to the
execution of this Charterparty. No further lien, mortgage or encumbrance shall be
placed upon the Vessel during the term of this Charterparty without the prior written
consent of Enterprise, such consent not to be unreasonably withheld;
	 
	d)  	that the Master, officers and crew shall be fully fit and suitably skilled, qualified
and trained to good industry standards for the positions held by them, experienced in
offshore operations and practices and the Vessel manned so as to ensure compliance with the
appropriate government manning regulations and the reasonable requirements of Enterprise;
	 
	e)  	that the employment duties described in Article 2 will be performed to the highest
professional standards, in a safe manner, in accordance with accepted practices in the
Brazilian petroleum industry and with due regard to the protection of the environment;
	 
	f)  	to afford to Enterprise and/or its representative access at all times to the Vessel.
Enterprise shall have the right at any time to search, examine and/or inspect the Vessel
(including access to conduct technical, safety, quality and other audits) and Owners shall
afford to Enterprise, and to any person authorised by Enterprise, every assistance and
facility in the exercise of such right. Neither such search, examination and/or inspection
nor lack thereof shall relieve Owners from their obligations under this Charterparty. Owners
shall promptly carry out any remedial action required pursuant to said search, examination
and/or inspection at no cost to Enterprise;
	 
	g)  	that throughout the Charter, Owners shall comply, and shall procure that their
sub-contractors, their personnel and their sub-contractors personnel shall comply, fully
and at all times with all Site Rules and with all applicable decrees, laws, regulations,
rules, orders and ordinances of any governmental and other authorities having
jurisdiction. Owners shall ensure that they and their sub-contractors and their respective
personnel are aware of all such Site Rules.
	 
	h)  	that they shall provide, and shall procure that their sub-contractors provide, all
information required by Enterprise to enable it to provide information to comply with its
obligations under the Concessions and any regulations of the Brazilian port authority and/or
any other statutory Brazilian governmental authority.
	 
	i)  	that they will provide a Letter of Quiet Enjoyment from each of the mortgagees of the
Newbuild Vessel in the form included as Attachment 2 - Letter of Quiet Enjoyment within 30
days from the Effective Date.

ARTICLE 8 HIRE AND PAYMENTS

	8.1  	Enterprise shall pay Hire monthly in arrears, less any amounts disbursed on Owners’
behalf and less any Hire paid or to be paid or expenses incurred by Enterprise as may
reasonably be estimated by it to relate to off-hire period, and less any amounts due or
estimated to become due from Owners to Enterprise, and/or any amounts due or estimated to
become due to Enterprise hereunder. The rate is specified in Schedule II

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12

	   	and shall apply per day, and pro rata for any part of a day, commencing at the Interim
Vessel Delivery Date or Newbuild Vessel Delivery Date, as applicable, and continuing
throughout the Charter until the time and day of redelivery in accordance with Article 4.3,
unless sooner terminated in accordance with the terms hereof.
	 
	8.2  	At the beginning of each calendar month Owners shall submit to Enterprise an invoice for
amounts properly payable to Owners in accordance with the terms of this Charterparty in
respect of operations performed and reimbursable expenses paid by Owners in the previous
calendar month. Each invoice shall agree with the Master’s daily log and other
appropriate records previously furnished to Enterprise showing a breakdown of the rates
applied to the nearest hour and shall be accompanied by such vouchers, invoices, receipts,
records and other documentary evidence as Enterprise may reasonably require in
substantiation of reimbursable costs claimed by Owners.
	 
	8.3  	Within thirty (30) days of receipt by Enterprise of a properly presented and correct
invoice Enterprise shall pay Owners. If a dispute arising out of or in connection with
this Charterparty exists between Enterprise and Owners, Enterprise may withhold from any
money then or thereafter payable either the equivalent of Enterprise’s estimated value of
(i) the part of the operations under dispute, or (ii) the amount which is the subject of the
dispute. On settlement of the dispute Enterprise shall make any further payment due in
accordance with the terms of this Article 8. Subject to the provisions of Article 8.1,
payment of the undisputed portion shall not be withheld by Enterprise.
	 
	8.4  	Owners agree that no payment made by Enterprise under the terms of this Charterparty
shall constitute, or shall be construed to constitute, the acceptance of the validity of any
charge or the waiver of any right to claim repayment, unless and until Enterprise’s audit
rights with respect thereto, as set forth herein, shall have expired, and such invoice,
charge or payment shall not have been challenged.
	 
	8.5  	All invoices shall be submitted by Owners to the following address unless otherwise
notified to Owners in writing by Enterprise:

Enterprise Oil do Brasil Limitada

Praia de Botafogo 440 - 22° andar

Botafogo

Rio de Janeiro

RJ 22250-040

Brazil

Marked for the attention of Accounts Payable.

ARTICLE 9 SCHEDULED MAINTENANCE AND DRYDOCKING

	9.1  	All maintenance, overhaul, repair and dry-docking shall be undertaken by Owners with all
due despatch. The Vessel shall be dry-docked at regular intervals, approximately once every
thirty (30) months, and Enterprise shall place the Vessel at Owners’ disposal clean of
cargo, with clean cargo tanks for the purposes of scheduled maintenance and dry-docking.
Owners shall take all reasonable steps not to interrupt Enterprise’s own work programme for
the Vessel. All expenses in connection with maintenance, overhaul,

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12

	   	repair and dry-docking shall be for Owners’ account. Enterprise shall continue to pay the
Hire for up to one day of maintenance, repair, overhaul and dry docking in each calendar
month. Such on-hire maintenance days may be aggregated in any calendar year on the basis
of one day earned per month. Up to 12 maintenance days may be carried forward from one
calendar year to the next. Maintenance days shall be counted from the time the Vessel is
deviated from operational service, or removed from the location designated by Enterprise,
until such time as it once more resumes operational service at the operational base.
Owners agree to furnish Enterprise with Owners’ proposed dry-docking schedule and
Enterprise agree to make every reasonable effort to assist Owners in adhering to such
pre-determined dry-docking schedule for the Vessel.
	 
	9.2  	Notwithstanding the provisions of this Article 9, Owners and Enterprise undertake,
during the period of the Charter, to agree suitable days and periods when maintenance days
are required to be taken.

ARTICLE 10 RECORDS AND AUDIT

	10.1  	Owners shall keep accurate accounts and time records showing all costs and charges
incurred in accordance with generally accepted accounting principles and practices. Such
accounts and records which are pertinent to this Charterparty (including ISM, personnel and
maintenance) shall be made available for audit in Owners’ offices during normal business
hours by Enterprise’s authorised representatives, if requested by Enterprise. Owners
shall preserve such accounts and records for at least five (5) years after completion of
the Charter.
	 
	10.2  	Enterprise shall have the right to request an annual audit (in a format to be mutually
agreed between the Parties) based upon IMCA’s Common Marine Audit or equivalent; such
request shall not unreasonably be withheld by Owners.
	 
	10.3  	Should Enterprise’s Consortium Members require to audit the Vessel at any time, such a
request must be made through Enterprise beforehand and the terms of the audit agreed with
Owners.

ARTICLE 11 TAXATION

	11.1  	Owners shall be liable for and shall indemnify Enterprise and the Consortium Members
from any taxes including national insurance or social security contributions or other
similar charges, interest or penalties thereon, on income, wages, salaries, profits or
gain and any fines, interest or penalties imposed by any governmental authority having
jurisdiction of the territories where the activities undertaken in accordance with the
provisions of this Charterparty are carried out upon Owners or Enterprise or the
Consortium Members in respect of any payment made to or earned by Owners hereunder, or
paid by Owners to any other person whilst carrying on the activities provided for under
this Charterparty. If required by the laws of any country having such jurisdiction,
Enterprise shall have the right to withhold amounts, at the withholding rate specified by
such laws, from the compensation payable for the work performed by Owners hereunder, and
any such amounts paid over by Enterprise to a governmental authority pursuant to such laws
shall to the extent of such payment, be credited against and deducted from amounts
otherwise owing to Owners hereunder.

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12

	11.2  	Owners shall be responsible for and shall indemnify Enterprise and the Consortium Members
from all Brazilian customs and excise duties, taxes and charges, including clearing and
brokerage charges and the provision of bonds and guarantees, paid or payable for or in respect
of the importation and, if applicable, the subsequent exportation of the Vessel and any
associated equipment, materials, spare parts and other supplies provided by Owners and their
sub-contractors under this Charterparty, including the personal property of Owners’ and their
sub-contractors’ personnel, whether payable to the Federal government of Brazil, any State of
Brazil, any municipality in Brazil or any other body in Brazil which has the right to levy
such duties, taxes and charges. Owners shall be liable for and shall indemnify Enterprise and
the Consortium Members from and against all claims, demands, fines, penalties, charges,
liabilities, costs and expenses of any nature suffered or incurred by Enterprise as a result
of or by reason of any such importation or exportation.
	 
	11.3  	Owners shall provide, and shall procure that their sub-contractors provide, any
information required by Enterprise to enable Enterprise to comply with any Brazilian statutory
obligations regarding taxation.
	 
	11.4  	Enterprise will pay Owners the Hire due under the terms of this Charterparty which is
inclusive of the relevant Brazilian value added or sales taxes specified in Schedule II which
are chargeable in respect of goods or services supplied by Owners.
	 
	11.5  	The obligations under this Article 11 shall, as independent and severable obligations,
survive the expiration, termination for any cause or repudiation of this Charterparty.

ARTICLE 12 OFF-HIRE

	12.1  	The Vessel shall be off-hire, and consequently Hire shall cease to be due or payable, in the
event of the Vessel ceasing, at any time during the Charter, to be fully at the disposal of
Enterprise and/or in the event of loss of time (whether arising from interruption in the
performance of the Vessel’s service or from reduction in the speed or performance thereof or
in any other manner) for any reason whatsoever, including, but not by way of limitation:

	 	a)  	deficiency of men or stores (including spares delayed in Customs), fire,
breakdowns of or accident or damage to hull or machinery or equipment (other than any
additional equipment installed by Enterprise, if any), including collision or grounding,
or any other cause preventing the efficient working of the Vessel; including but not
limited to any failure or reduced performance of equipment related to living conditions
on board;
	 
	 	b)  	maintenance, repair, overhaul or drydocking other than on-hire maintenance days
in accordance with Article 9.1;
	 
	 	c)  	strikes, labour disputes, refusal to sail, breach of orders or neglect of duty by
Master, officers or crew;

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12

	 	d)  	deviation for the purpose of obtaining medical aid or treatment for or landing
any sick or injured person or the body of any deceased person (other than a passenger
carried pursuant to Article 24);
	 
	 	e)  	quarantine or risk of quarantine caused by the Master, officers or crew having
communication with the shore and any infected area other than in connection with the
employment of the Vessel.
	 
	 	f)  	proceeding to or from, and time spent at, any port or anchorage other than the
port to which the Vessel is bound on the instructions of Enterprise for any reason other
than stress of weather;
	 
	 	g)  	detention of or delay to the Vessel by lawful authorities in Brazil or elsewhere
in consequence of legal action against or breach of regulations (whether actual or
alleged) by Owners;
	 
	 	h)  	preparing the Vessel or awaiting facilities, berth anchorage or dry dock for
maintenance or repairs, the carrying out of and proceeding to or from port for such
maintenance or repairs; or
	 
	 	j)  	requisition by any Governmental authority.

	12.2  	In the event that the Vessel, its outfitting, performance or crew does not in all respects
meet the requirements of this Charterparty then the Vessel shall be off-hire. If however,
during an off-hire period, Enterprise requires the Vessel to carry out operational activities
at sea then Enterprise shall pay the full Hire rate for the duration of such activities.
	 
	12.3  	The cost of bunkers, any port charges, tugs, pilots and all other expenses incurred in
respect of the Vessel during off-hire periods shall be for Owners’ account.
	 
	12.4  	Enterprise shall have the right to require that Owners use their best endeavours to provide a
substitute Vessel, acceptable to Enterprise, during any off-hire periods. In the event that a
substitute Vessel is provided then Enterprise shall pay the full Hire rate or a lower Hire
rate, determined by Enterprise, if the substitute vessel is of a lower specification than the
Vessel.

ARTICLE 13 OWNERS OR ENTERPRISE TO PROVIDE

	13.1  	Owners shall provide and pay for:

	 	a)  	all provisions, subsistence, wages, salaries and bonuses (including overtime
pay), shipping and discharging fees, Vessel management, onshore support and all other
expenses and charges in connection with the Master, Officers and Crew;
	 
	 	b)  	all insurance on the Vessel and crew as provided for in Article 36;
	 
	 	c)  	all accommodation, deck, engine room and other necessary stores and domestic
water (but not water for offshore installations);

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12

	 	d)  	all customs or import duties arising in connection with any of the
foregoing and all other charges, taxes and expenses whatsoever relating to the
Vessel, including but not limited to those required to maintain and keep the
Vessel, its hull, machinery and equipment in a seaworthy and efficient state; and
	 
	 	e)  	all greases and lubricants consumed.

	13.2  	Subject always to the provisions of Articles 12.3 and 13.1, Owners shall provide
and Enterprise shall reimburse Owners for:

	 	a)  	all fuel oil and/or diesel oil consumed;
	 
	 	b)  	port charges, agency fees, commissions, compulsory pilotage (where
exemption has not yet been obtained), light dues, and consular charges; and
	 
	 	c)  	all telephone, radio and telex calls or messages made by or sent at the
request of any Enterprise representatives or Enterprise passengers onboard the
Vessel.

	13.3  	Enterprise at the time of delivery and Owners at the time of redelivery shall take
over and pay for all bunker fuel on board the Vessel at the net invoiced prices paid for
such bunker fuel.
	 
	13.4  	Enterprise shall not be responsible for the condition or safety of any dock, berth,
wharf, vessel, FPSO, drilling rig, offshore installation or place to which the Vessel is
directed during the Charter.

ARTICLE 14 MASTER AND CREW

	14.1  	The Vessel (s) shall, at all times and as a minimum standard, be manned by
personnel qualified and certificated in accordance with the requirements of Brazilian
Regulations.
	 
	14.2  	The Master and Officers shall be fluent, written and spoken, in the English language.
Additionally a minimum of 3 officers, including the Master, shall be fluent, written and spoken, in
Portuguese.
	 
	14.3  	The Master, Officers and crew shall carry out their duties with the utmost despatch
at all times as required by Enterprise. Provided always that the following operations
are subject to the Master’s overall direction, supervision and responsibility and the
Master’s right to refuse to obey any order which would endanger the Vessel or crew, all
customary assistance shall be rendered, including but not limited to:

	 	a)  	loading, hooking on and discharging cargo by day or night as required
by Enterprise and operating appropriate machinery on board the Vessel;
	 
	 	b)  	hoisting, connecting and disconnecting fuel, offloading, water and
pneumatic hoses, assistance for export hoses, tanker hang-off lines;
	 
	 	c)  	subsea maintenance/ROV operations; and
	 
	 	d)  	emergency response duties (including oil spill and safety activities).

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12

	   	Owners shall procure that Enterprise shall have the right to communicate directly with the
Master of the Vessel at all times. Owners shall not prevent the Master from communicating
with Enterprise.
	 
	14.4  	Not later than two months after the Charter has commenced, Owners shall ensure that both the
Master and Relief Master shall have obtained Pilotage Exemption Certificates, if required, for
the operation of the Vessel at Vitória, Macaé, Niterói and Rio de Janeiro.
	 
	14.5  	Owners shall, at the request of Enterprise, promptly remove the Master or any officer or any
member of the crew. Owners shall, at their own cost and expense, promptly replace such
personnel with a suitably skilled and competent substitute.

ARTICLE 15 ADDITIONAL EQUIPMENT

Enterprise, subject to Owners’ approval which approval shall not be unreasonably withheld or
delayed, shall be at liberty to fit in its own time and at its own expense (if any) all such
additional equipment as it may from time to time require in addition to that which is already on
board the Vessel at the commencement of the Charter and to make any necessary connections to
steam and/or water pipes and electrical and/or pressurised air pneumatic supplies. Such
additional equipment shall be Enterprise’s property and Enterprise shall be at liberty to remove
it or change it at its own expense and time during or upon completion of the Charter, the Vessel
to be left in her original condition, reasonable wear and tear excepted.

ARTICLE 16 COMMUNICATIONS

Enterprise shall have the use of the Vessels communications system(s) providing that such use
does not prevent or hinder the Vessel from carrying out required and routine marine
communications applicable to the safe operation of the Vessel.

ARTICLE 17 TWENTY-FOUR HOUR OPERATIONS

	17.1  	Owners agree to the Vessel being equipped, manned and operated in order to effect continuous
twenty-four hour operations and at all times ready for operational service.
	 
	17.2  	Unless the Vessel is laid-up in accordance with Article 31, the Master, Officers and crew
will remain on board and ready for operational service at all times.

ARTICLE 18 ISM CLAUSE

	18.1  	From the date of coming into force of the International Safety Management (ISM) Code in
relation to the Vessel and thereafter during the currency of this Charterparty, Owners shall
procure that both the Vessel and “the Company” (as defined by the ISM Code) shall comply
with the requirements of the ISM Code. Upon request Owners shall provide a copy of the
relevant Document of Compliance (DOC) and Safety Management Certificate (SMC) to Enterprise.

	 	 	 	 	 
	

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CHARTERPARTY NO.102.18.12

	18.2  	Except as otherwise provided in this Charterparty, loss, damage, expense or delay caused by
failure on the part of Owners or “the Company” to comply with the ISM Code shall be for
Owners’ account.
	 
	18.3  	Enterprise reserve the right to audit Owners compliance to the ISM Code at any time during
the currency of the Charter party upon providing Owners with thirty (30) days notice; such
right shall not be exercised unreasonably.

ARTICLE 19 DEMISE

Nothing contained in this Charterparty shall be construed as creating a demise of the Vessel to
Enterprise.

ARTICLE 20 CONFIDENTIALITY & INTELLECTUAL PROPERTY RIGHTS

	20.1  	All information or data obtained by Owners in the performance of this Charterparty is the
property of Enterprise, is confidential and shall not be disclosed without the prior written
consent of Enterprise. Owners shall use their best efforts to ensure that Owners, any of
their sub-contractors, and employees and agents thereof shall not disclose any such
information or data.
	 
	20.2  	Any intellectual property rights in any invention developed by Owners as a result of the
performance of this Charterparty shall vest in and be the property of Enterprise, and Owners
shall (at the request and expense of Enterprise) take such steps as may be necessary to
protect Enterprise’s interest therein.

ARTICLE 21 PUBLICITY

	21.1  	Owners shall not, and shall procure that their sub-contractors shall not, advertise or
otherwise disclose their appointment or any information relating to this Charterparty (save as
may be required by law or may be necessary for the due performance of the Charterparty)
without the prior written consent of Enterprise.
	 
	21.2  	All copies or material relating to this Charterparty, or the Vessel, which Owners intend for
publication in any form, including but not limited to, in-house magazines, press releases,
exhibitions, articles and handouts shall first be submitted in draft form (in full text
including headline/banner) to Enterprise for their review. The submission by Owners shall
indicate the countries in which it is intended it will appear, the nature of the publicity and
the intended audience and date of publication.
	 
	21.3  	Any consent of Enterprise is limited to the nature and purpose of the initial request from
Owners. In the event that Owners wish to use the same material (or any part thereof) for
subsequent publication in any form, including but not limited to additional press releases,
handouts, articles, further exhibitions or change in target audience, then Owners, shall
resubmit the material for Enterprise’s review and consent to publish.

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12

ARTICLE 22 NOT USED

ARTICLE 23 VESSEL ALTERATIONS & ADDITIONAL EQUIPMENT

	23.1  	Prior to the Newbuild Vessel Delivery Date and thereafter during the Charter period,
Enterprise may from time to time request Owners to make modifications and changes to the
Newbuild Vessel. Owners shall, not later then six (6) working days after the receipt of such
request notify Enterprise of its technical proposals and the lump sum price for implementing
the required changes and also the consequent effect on the Hire rates and, as applicable, the
effect on the planned Newbuild Vessel Delivery Date or any period of unavailability of the
Newbuild Vessel for operations. If Enterprise shall within ten (10) days thereafter notify
Owners in writing that Enterprise agree to the adjustments so proposed, then Owners shall
proceed immediately to implement the agreed modifications and changes.
	 
	23.2  	Enterprise shall have, in respect of the Interim Vessel, the same rights to request changes
to the Interim Vessel during the Charter period prior to the Newbuild Vessel Delivery Date as
are set out in respect of the Newbuild Vessel in Article 23.1. However the Implementation of
such requests shall be subject to the agreement of Owners, which shall not be unreasonably
withheld.
	 
	 
	23.3  	Enterprise shall, at its sole discretion, either pay the Owners the lump sum price of the
required changes or pay a Hire rate adjustment in respect thereof.
	 
	23.4  	Unless otherwise expressly agreed between the Parties, the modifications and changes to the
Newbuild Vessel or the Interim Vessel, or the addition of permanent equipment, shall be part
of the Vessel and Owners shall have title to and be responsible for same.
	 
	23.5  	Notwithstanding the provisions of Article 23.2, Enterprise shall have the right in accordance
with Article 15, to bring on board the Vessel specialist equipment required to perform
specific tasks and such equipment shall be and remain the property of its owners.

ARTICLE 24 PASSENGERS

	24.1  	Enterprise shall have the right to utilise up to seventeen (17) berths on the Vessel at any
tune during the Charter, and such further berths as may be available. Enterprise shall keep
Owners regularly advised of the number of passengers expected to be on board. Accommodation
and meals will be charged at rates per passenger per day as specified in Schedule II.
	 
	24.2  	The number of passengers on board each day, for invoicing purposes, shall be agreed between
the Master (or the Vessel’s Cook) and Enterprise. This figure shall be determined and
agreed for each day as at 23:59 hours.

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12

ARTICLE 25 INSPECTION DURING THE CONSTRUCTION PERIOD

	25.1  	Prior to the Newbuild Vessel Delivery Date Enterprise shall have the right to inspect the
Newbuild Vessel and all design and construction documentation, engines, machinery, outfit and
equipment intended therefor. Inspections may be carried out by third parties engaged by
Enterprise. Owners shall, and shall procure that their sub-contractors shall, co-operate with
Enterprise and grant full and free access for inspections.
	 
	25.2  	Enterprise and its personnel and contractors shall observe the work rules prevailing at
sub-contractor’s premises.
	 
	25.3  	Without prejudice to the inspection rights of Enterprise under this Article 25, Owners shall
keep Enterprise closely advised of the progress and status of the construction of the Newbuild
Vessel. During construction of the Newbuild Vessel monthly meetings shall be held with
Enterprise, Owners and Owners’ principal subcontractors at the yard where the Newbuild Vessel
is constructed in order to monitor construction activities and progress.
	 
	25.4  	During construction of the Newbuild Vessel Owners shall provide Enterprise with regular
monthly updates of the Brazilian and non-Brazilian content of the Newbuild Vessel. Owners
shall also state the origin (main places of source and approximate financial percentage split
into goods and services) of the non-Brazilian content of the Newbuild Vessel.
	 
	25.5  	Owners shall notify Enterprise, at least ten days in advance, and procure permission for
Enterprise to attend tests/trials, including sea trials, of major machinery and components
including but not limited to tests of engines, auxiliaries, DP
systems, main switchboard,
materials construction tests, speed-performance tests, equipment and machinery tests.
Enterprise’s acceptance of the Vessel or any aspect of the Vessel or its performance shall
under no circumstances be deemed to have been given as a result of Enterprise’s, or its
contractor’s, attendance at or participation in any such tests, or consent to or approval of
results or remedial actions.

ARTICLE 26 ENTERPRISE’S RIGHT TO INSPECT DURING THE CHARTER PERIOD

	26.1  	At any reasonable time during the Charter, Enterprise shall have the right to inspect the
Vessel (and to have the Vessel inspected by any Consortium Member) and Owners’ HSE and Annual
Quality Plans. Such rights shall in no way relieve Owners of their responsibilities under this
Charterparty.
	 
	26.2  	From the Newbuild Vessel Delivery Date Owners shall provide Enterprise with regular monthly
updates of the Brazilian and non-Brazilian content of its Vessel crew and operations. Owners
shall also state the origin (main places of source and approximate financial percentage split
into goods and services) of the non-Brazilian content of the Vessel crew and operations.

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12

ARTICLE 27 PURCHASE AND MANAGEMENT OPTION

	27.1  	Owner hereby grants to Enterprise the right to purchase the Newbuild Vessel and the
right to change the management of the Interim Vessel and the Newbuild Vessel upon the
following terms:
	 
	27.1.1  	Enterprise shall have the right to purchase the Newbuild Vessel at any time after the
Newbuild Vessel Delivery Date and during the term of this Charterparty and such right may be
exercised at any time by Enterprise by giving at least one hundred and twenty (120) days
notice to Owners. Enterprise shall have the right, but not the obligation, to retain the
services of Owners as vessel managers following purchase of the Newbuild Vessel by Enterprise
and in such case the rates set out therefor in Schedule II shall be applicable.
	 
	27.1.2  	If Enterprise purchases the Newbuild Vessel then the purchase shall be made on the terms
contained in Norwegian Sale Form 1993 – Attachment 1 – Memorandum of Agreement. The parties
shall comply with all procedures prescribed by Brazilian Law, related to the form of execution
of the Memorandum of Agreement and subsequent registration before the competent register
offices and, if necessary, amend the Memorandum of Agreement to satisfy any
requirements of such regulations, subject to their being no adverse cost implications to the
sellers.
	 
	27.1.3  	The Newbuild Vessel shall be sold free from all encumbrances unless Enterprise agrees to
take over any such encumbrances, in which event Owners shall use best endeavours to procure
the transfer of any such encumbrance to Enterprise. All related costs shall be shared
equally between Owners and Enterprise.
	 
	27.1.4  	Owners shall complete the sale of the Newbuild Vessel within 30 (thirty) banking days from
the date of expiry of Enterprise’s notice of purchase given under Article 27.1.1.
	 
	27.1.5  	Enterprise’s obligation to pay the Hire shall cease upon completion of the sale and purchase
of the Newbuild Vessel and redelivery shall be deemed to have taken place at that time.
	 
	27.1.6  	Enterprise shall have the right to change the management of the Vessel only upon exercise of
its right to purchase or in the event of unsatisfactory performance by Owners or their
subcontractors. Enterprise shall give Owners at least one hundred and twenty (120) days notice
of its intention to change the management of the Interim Vessel or the Newbuild Vessel. In the
case of unsatisfactory performance, if Owners can remedy their performance to the satisfaction
of Enterprise within 60 days of being given notice under this Article 27.1.6, Owners may
request that Enterprise withdraws its notice to change the Vessel management. Enterprise may
either:

	 	 	a)  	require the Owners to replace any subcontractor involved in management
activities; or
	 
	 	 	b)  	may require to take over the management of the Vessel. In which case, upon expiry
of the notice period Owners shall, at a location to be agreed with Enterprise, remove
their Master, officers and crew from the Vessel and afford all assistance required by
Enterprise to establish its own Master, officers and crew

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12

	 	  	on board the Vessel. Owners shall provide Enterprise with copies, or if required,
originals of all documents, certificates and other records pertaining to the
Vessel itself and its operation and maintenance. From the date upon which
Enterprise’s Master, officers and crew take over the Vessel Enterprise shall cease
to be liable to pay for the operation of the vessel and Owners shall cease to be
responsible for operation and maintenance of the Vessel.

	27.2  	Enterprise may at its sole discretion assign any of its rights and obligations under
this article 27 to any of its Affiliates or any of the Consortium Members

ARTICLE 28 ENTERPRISE’S REPRESENTATIVES

	28.1  	Enterprise shall have the right to place their own personnel and Consortium Member personnel
on board the Vessel during the Charter period. Under no circumstances shall any Enterprise
or Consortium Member personnel, other than Enterprise’s Representative, be
authorised to issue any instructions to the Master or Owners in relation to the operation of
the Vessel. Enterprise may designate in writing one of Enterprise’s personnel to be
Enterprise’s Representative. Enterprise shall not be obliged to appoint an Enterprise
Representative nor to place any personnel on board the Vessel.
	 
	28.2  	Enterprise Representative shall be authorised to act on behalf of Enterprise in all matters
relating to the performance of offshore operations, and to give instructions in relation
thereto to the Master, but shall have no authority to direct or control the navigation or
management of the Vessel. In following any such instructions, Owners shall not be relieved
of their obligation to exercise reasonable skill and care, nor the Master relieved of his
exclusive right to determine whether the operation may be safely undertaken. Notwithstanding
the foregoing, no instruction, approval or other direction or affirmation by the Enterprise
Representative shall relieve Owners of their responsibilities and obligations under this
Charterparty. Enterprise Representative has no authority to amend, cancel, waive or vary the
rights, liabilities and obligations of the Parties as set out in this Charterparty.
	 
	28.3  	Accommodation and messing facilities for Enterprise and any Consortium Member personnel shall
be charged in accordance with the passenger rates set out in Schedule II and shall be to
standards applying to Owners’ officers serving on the Vessel.
	 
	28.4  	Enterprise shall have the right to make photographic, video or other recordings of the Vessel
and it’s operations. The Master may stop or restrict such recording, in his sole discretion,
solely for stated reasons of safety.

ARTICLE 29 ENTERPRISE’S INSIGNIA

Enterprise may fly their house flag at any time during the Charter period, and shall also have the
right to determine colour/outfitting and to select the name of the Newbuild Vessel.

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12

ARTICLE 30 CARGO

	30.1  	The whole reach and burden of the Vessel’s cargo tanks, decks, usual places of loading and
its passenger accommodation shall be at Enterprise’s disposal, reserving only proper and
sufficient space for the Vessel’s Master, officers, crew, tackle, apparel, furniture,
provisions, stores and fuel.
	 
	30.2  	The Vessel shall be allowed to carry explosives and dangerous cargoes provided that they are
labelled, packed and stored in accordance with all relevant regulations.

ARTICLE 31 LAY UP

Enterprise shall have the right to require the Vessel to be laid up at an agreed safe port or
place for all or any portion of the Charter period instead of working the Vessel. In such case
the Hire shall continue to be paid but, if the period of such lay-up exceeds thirty (30)
consecutive days the hire shall be reduced by the amount by which Owners reduce (or should
reasonably reduce) their operating expenditure.

ARTICLE 32 REQUISITION

Should the Vessel be
requisitioned at any time during the Charter by any Governmental authority,
the Vessel shall be off-hire during the period of such requisition and any hire or compensation
paid in respect of such requisition shall be for Owners’ account. The period of such requisition
shall count as part of the Charter, provided that if such requisition continues for more than
thirty (30) consecutive days, Enterprise shall have the right to terminate this Charterparty
forthwith upon notice to Owners.

ARTICLE 33 WAR

	33.1  	Enterprise shall not knowingly, without the consent of Owners having first been obtained,
direct the Vessel to any place or on any service outside Brazilian waters which will bring her
within a zone which is dangerous as a result of any actual or threatened act of war, war
hostilities, war-like operations, acts of piracy or of hostility or malicious damage against
the Vessel 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 carry 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 Ruler.
	 
	33.2  	Should the Vessel approach or be brought or ordered within such zone or be exposed by
Enterprise in any way to the said risks 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. Enterprise shall make a refund to Owners of such reasonable premium on demand.
	 
	33.3  	The Vessel shall have the liberty to comply with any orders or directions as to departure,
arrival, routes, port of call, stoppages, destination, delivery or otherwise whatsoever given
by the Government of the nation under whose flag the Vessel sails or any other

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12

	   	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.
	 
	33.4  	In the event of the nation under whose flag the Vessel sails becoming involved in war,
hostilities, warlike operations, revolution or civil commotion which affects
the performance of this Charterparty, Enterprise may terminate this Charterparty forthwith
and, unless otherwise agreed, the Vessel shall be redelivered to Owners at the port of
destination, or, if prevented from reaching or entering it, at a near open and safe port at
Owners’ option, after discharge of any cargo on board.
	 
	33.5  	In complying with the provisions of this Article 33 Owners shall not be deemed to be in
default.

ARTICLE 34 EXCLUDED PORTS/ICE

	34.1  	The Vessel shall not without Owners’ consent, such consent not to be unreasonably
withheld, be ordered to nor be bound to enter:

	 	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; or
	 
	 	b)  	any ice-bound 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 the ice to reach the place or to
get out after having completed her operations. If on account of the ice the Master
considers it dangerous to remain in the position at which the Vessel is ordered to be
for fear of the Vessel being frozen in and/or damaged, he has liberty to sail to
a convenient open place and await Enterprise’s fresh instructions.

	34.2  	Unforeseen detention through any of the causes specified in this Article 34 shall be for
Enterprise’s account.

ARTICLE 35 TERMINATION

	35.1  	In the event the Vessel becomes a total loss (which term includes a constructive or
compromised or arranged total loss) becomes stranded, capsizes, sinks or becomes a wreck or an
obstruction to navigation or be seized or captured Enterprise shall have the right to
terminate this Charterparty forthwith without notice as from the time any of the foregoing
occurred. If the time of the loss, seizure, capture, stranding, capsizing, sinking,
becoming a wreck or obstruction cannot be ascertained or if the Vessel is unreported or
missing, then termination shall take place as from noon on the day on which the Vessel was
last heard of.
	 
	35.2  	Enterprise shall also be entitled to terminate this Charterparty:

	 	a)  	in the event of force majeure in accordance with Article 48;

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12 

	 	b)  	forthwith, without prejudice to any of its other rights or remedies, by notice
in writing to Owners if Owners or any company of which they are a subsidiary shall
become insolvent; or if insolvency, receivership or bankruptcy proceedings shall
be commenced by or against Owners or any company of which they are a
subsidiary, or if an administrator be appointed (or the equivalent of any of the
foregoing under the laws of the place, incorporation or business of Owners or
any company of which they are a subsidiary) or if Owners shall assign this
Charterparty or any rights or interest herein, except as permitted hereunder, or
persistently disregard laws, ordinances or Enterprise’s instructions, or if Owners
shall fail, neglect or refuse to perform the operations hereunder, or if Owners
shall default in their performance of any provision of this Charterparty;

	 	c)  	by giving not less than five (5) days prior notice to
Owners at any time if any
damage to or defect in or loss or breakdown of the Vessel or its equipment
results in the non-availability of the Vessel for operations hereunder for thirty
(30) days (including on-hire maintenance days used) in any twelve (12) month
period during the Charter.

	 	d)  	by giving not less than five days prior notice to Owners if the Newbuild Vessel
is not, or if in Enterprise’s opinion will not be, ready for acceptance on the planned
Newbuild Vessel Delivery Date set out in Article 4.2.3.

	 	e)  	forthwith by giving notice to Owners if Owners abandon this Charterparty or
without reasonable cause suspend performance of operations hereunder for a
period of twenty four (24) hours after receiving notice from Enterprise to
proceed, or if Owners fail to perform or observe any of the obligations on their
part to be performed and observed hereunder and, in the case of a breach capable
of remedy, fail or refuse to take steps to remedy the same within five (5) days of
notice from Enterprise requiring the same to be remedied; or

	 	f)  	by giving Owners at least thirty (30) days notice of redelivery to expire on or
after the third anniversary of the commencement of the Charter. In the event of
termination under this Article 35.2f) Enterprise shall pay to Owners a termination
fee calculated as set out in Schedule II.

	35.3  	After the third year of the Charter, Enterprise shall have the right to cancel or suspend
all or any part of the Charter or terminate this Charterparty forthwith if, in Enterprise’s
sole opinion there is reasonable cause for such cancellation, suspension, or termination.
In the event of termination under this article 35.3 Enterprise shall pay to Owners a
termination fee calculated as set out in Schedule II.

	35.4  	Termination of this Charterparty shall be without prejudice to any rights or remedies
accrued to either Party prior to such termination.

	35.5  	No further Hire shall be or become due to Owners in respect of any period of suspension
or cancellation of the Charter or after termination of this Charterparty, with the
exception only of any payments previously accrued and due to Owners under the terms
of this Charterparty.

	 	 	 	 	 
	 

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ARTICLE 36 GENERAL INDEMNIFICATION

	36.1  	DEFINITIONS AND INTERPRETATIONS

	 	36.1.1  	For the purposes of this Charterparty “indemnify”
shall include relieve from liability, defend and hold harmless and the word “indemnity” and cognate
expressions shall be construed accordingly, and “Claims” or “Claim” shall
include any claim or demand or any proceedings or inquiry made, brought or
instigated by any person or body.
	 
	 	36.1.2  	Where in this Charterparty a Party gives an indemnity, such indemnity shall
extend to any and all liabilities, damages, charges, fines, penalties, costs and
expenses incurred or payable in connection with or in consequence of the Claim
including, but without limitation:

	 	a)  	liabilities or damages, not excluding punitive or exemplary
damages, admitted, determined or awarded or agreed in any settlement
or compromise;
	 
	 	b)  	charges, fines and penalties levied or imposed by any person or
body having jurisdiction and power so to do; and
	 
	 	c)  	costs and expenses, including but without limitation legal
costs and expenses on a full Indemnity basis and the cost of the time spent on the
Claim by the personnel of the indemnified Party, whether or not the Claim
is successfully resisted or defended.

	 	36.1.3  	Where in this Charterparty a Party gives an indemnity, such indemnity shall
extend, apply and be enforceable regardless of the cause or causes of the event
giving rise to the Claim and in particular but without limitation, shall extend,
apply and be enforceable notwithstanding that a cause or the cause may be:

	 	a)  	the negligence (whether sole, contributory or gross), fault or default of;
	 
	 	b)  	the breach of contract (whether breach of condition, innominate
term or warranty), repudiation of contract or misrepresentation (whether innocent
or negligent, but not fraudulent) by;
	 
	 	c)  	any breach of duty (statutory or other and whether or not
involving fault) or failure to comply with any applicable law, regulation, rule, decree,
order or ordinance on the part of the person or body so indemnified.

	 	36.1.4  	Where in this Charterparty a Party gives an indemnity, such indemnity shall
extend, apply and be enforceable as a fundamental obligation of that Party
without prejudice to any right whatsoever of any insurer or any right of any
Third Party or any person, firm or company having an interest in Third Party
Property.
	 
	 	36.1.5  	For the purposes of this Article 36 the following words and expressions shall
have the meanings respectively assigned to them:

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12 

	 	a)  	“Owners’ Personnel” means the directors, officers and employees of
Owners, their Affiliates and their sub-contractors;
	 
	 	b)  	“Owners’ Property” means property (which shall include the Vessel), real
or personal, in which Owners, their Affiliates, their sub-contractors or
Owners’ Personnel have a proprietorial right or interest (any property
leased, hired or otherwise made available to Owners and any of their sub-
contractors and made available for the operations hereunder shall be
deemed Owners’ Property);
	 
	 	c)  	“Damage” means the loss or destruction of or damage to or the permanent
or temporary, partial or complete loss of the use of, as the case may be,
Owners’ Property, Enterprise’s Property or Third Party Property;
	 
	 	d)  	“Death or Injury” includes the death of or any injury to, or the
contracting of any disease or illness, physical or mental, or the suffering
of mental shock or any analogous condition, by, the person concerned;
	 
	 	e)  	“Enterprise’s Personnel” means the directors, officers and employees of
Enterprise, its Affiliates and the Consortium Members;
	 
	 	f)  	“Enterprise’s Property” means property, real or personal, in which
Enterprise, any of the Consortium Members or Enterprise’s Personnel
have a proprietorial right or interest;
	 
	 	g)  	“Performance” includes performance, failure to perform and failure
properly to perform;
	 
	 	h)  	“Serious Event” means seepage or pollution from the Reservoir or any
well having the Reservoir as an objective (or any other hydrocarbons
encountered by that well); fire, explosion or blowout of the Reservoir or
any well having the Reservoir as an objective (or any other hydrocarbons
encountered by that well); or waste or damage to the Reservoir, or any
well having the Reservoir as an objective (or any other hydrocarbons
encountered by that well), or any associated pipe-line or sub-surface
facility;
	 
	 	i)  	“Third Party” means any party other than Enterprise, its Affiliates,
Consortium Members, Enterprise’s Personnel, Owners’, its Affiliates, its
sub-contractors and Owners’ personnel; and
	 
	 	j)  	“Third Party Property” means property, real or personal, which is neither
Owners’ Property nor Enterprise’s Property.

	 	36.1.6  	For the purposes of Article 36 references to sub-contractors shall include sub-
contractors of sub-contractors.

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12 

	 	36.1.7  	In the event of Death or Injury of Enterprise’s Personnel, Owners’ Personnel or
any Third Party the provisions of Articles 36.2, 36.3 and 36.4 shall take
precedence over the provisions of Article 36.8

	36.2  	ENTERPRISE’S PERSONNEL AND PROPERTY
	 
	   	Enterprise shall be liable for and shall indemnify Owners, their sub-contractors and
Owners’ Personnel from and against all Claims in respect of any Death or Injury of
Enterprise’s Personnel and any Damage to Enterprise’s Property, in each case caused
by, or arising out of the Performance of this Charterparty and whether or not arising in
respect of a Serious Event.

	36.3  	OWNERS’ PERSONNEL AND PROPERTY
	 
	   	Owners shall be liable for and shall indemnify Enterprise, the Consortium Members and
Enterprise’s Personnel from and against all Claims in respect of any Death or Injury of
Owners’ Personnel and any Damage to Owners’ Property in each case caused by, or
arising out of the Performance of this Charterparty and whether or not arising in
respect of a Serious Event. The assumption of liability and the indemnity contained in this
Article 36.3 extends to any Claims made against Enterprise pursuant to any provision of
any agreement, whenever effective, under which Enterprise assumes liability in respect
of and/or indemnifies and/or otherwise compensates any other person or body in respect
of the Death or Injury of Owners’ Personnel and any Damage to Owners’ Property
arising in respect of a Serious Event.
	 
	36.4  	THIRD PARTIES AND THIRD PARTY PROPERTY
	 
	   	Subject to Article 36.6, Owners shall be liable for and shall indemnify Enterprise, the
Consortium Members and Enterprise’s Personnel from and against all Claims in respect
of any Death or Injury of a Third Party and any Damage to Third Party Property up to
the sum of One Million and One Half Million US dollars (US$1,500,000) (or the
equivalent thereof in any other currency at the date of payment) in respect of each and
any single incident caused by or arising out of the Performance of this Charterparty by
Owners or their sub-contractors. If any such Claim or Claims exceeds One Million and
One Half Million US dollars (US$1,500,000) (or equivalent thereof in any other
currency at the date of payment) liability for the excess shall, as between Enterprise
and Owners, be borne in proportion to what their respective liabilities (if any) in the law
of negligence are or would be in respect of the incident in question.
	 
	36.5  	SEEPAGE AND POLLUTION - OWNERS’ OBLIGATIONS
	 
	   	Owners shall at all times exercise all reasonable care to conduct their operations
under this Charterparty in a manner that will prevent seepage or pollution, and Owners shall
comply fully and at all times with all applicable laws, regulations, rules, decrees,
orders, ordinances and lease or contract provisions relating to seepage or pollution. Owners
shall not allow any trash, waste oil, bilge water or other pollutants to be discharged
or leaked or to escape from Owners’ Property. Owners shall ensure that Owners’
Personnel are properly instructed and informed in respect of such matters. Owners shall
promptly and at their own expense clean up any seepage or pollution from Owners’

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12

	   	Property. Subject to Article 36.6, Owners shall be liable for and shall indemnify
Enterprise, the Consortium Members and Enterprise’s Personnel from and against all
Claims, in each case which are caused by or arise out of the failure of Owners to comply
with their obligations under this Article 36.5.
	 
	36.6  	SERIOUS EVENT
	 
	   	Enterprise shall be liable for and shall indemnify Owners, their sub-contractors and
Owners’ Personnel from and against all Claims in respect of any Death or Injury of a
Third Party and any Damage to Third Party Property to the extent that such Claims arise
in respect of a Serious Event, in each case caused by, or arising out of the Performance
of this Charterparty. The provisions of this Article 36.6 shall take precedence over the
provisions of Articles 36.4 and 36.5.
	 
	36.7  	FINES AND PENALTIES
	 
	   	Without prejudice to the other provisions of this Charterparty, Owners shall be liable
for and shall indemnify Enterprise, the Consortium Members and Enterprise’s Personnel
from and against all Claims in respect of fines, penalties or charges imposed, levied or
incurred by reason of the failure or alleged failure of Owners, their sub-contractors or
Owners’ Personnel to comply with any applicable Site Rules or laws, regulations or
other rules or any decree, order or ordinance.
	 
	36.8  	CONSEQUENTIAL LOSS

	 	36.8.1  	Subject to the provisions of Article 36.1.7 Enterprise shall be liable for and shall
indemnify Owners, their sub-contractors and Owners’ Personnel from and
against all Claims in respect of any loss of production, loss of profits, loss of
business or any indirect or other consequential loss or damage, arising out of or
in connection with the subject matter of this Charterparty, suffered by Enterprise
or the Consortium Members.
	 
	 	36.8.2  	Subject to the provisions of Article 36.1.7 Owners shall be liable for and shall
indemnify Enterprise, the Consortium Members and Enterprise’s Personnel
from and against all Claims in respect of any loss of production, loss of profits,
loss of business or any indirect or other consequential loss or damage, arising
out of or in connection with the subject matter of this Charterparty, suffered by
Owners or its sub-contractors.

	36.9  	SUNKEN VESSEL OR EQUIPMENT
	 
	   	If the Vessel or other item of Owners’ Property becomes stranded, capsizes, sinks or
becomes a wreck or an obstruction to navigation, Owners shall at their own expense
promptly raise and remove same or otherwise deal with it in accordance with any
applicable statute or regulation or as required for Enterprise’s continued operations.
In the event Owners fail or neglect to comply with the aforesaid obligation, Enterprise may
buoy and light the Vessel or other item of Owners’ Property which has become stranded,
capsized, sunk or become a wreck or an obstruction to navigation and remove same and
Owners shall reimburse all costs and expenses thereby incurred by Enterprise. The fact
that the Vessel or other item of Owners’ Property is insured or shall have been declared

	 	 	 	 	 
	 

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CHARTERPARTY NO. 102.18.12

	   	an actual, constructive, compromised or arranged total loss shall not relieve Owners
from any of their obligations and responsibilities under this Article 36.9.
	 
	36.10  	HANDLING OF CLAIMS
	 
	   	Each Party shall in respect of any Claim for which it will seek indemnity in terms of this
Article 36:

	 	a)  	as soon as reasonably practicable after becoming aware of the Claim provide the
other with reasonable details of it and thereafter provide the other in a timely
manner with such information relating to the Claim as may reasonably be
requested from time to time by the other;
	 
	 	b)  	not make, and use its reasonable endeavours to procure that there is not made,
any admission of liability, except with the prior written consent of the other, such
consent not to be unreasonably withheld or delayed;
	 
	 	c)  	keep the other reasonably informed of all material developments relating to,
and regularly informed of the progress of, the Claim;
	 
	 	d)  	use its reasonable endeavours to procure that the handling of the Claim,
including without limitation any resistance of or defence to it, is carried out and conducted
in all material respects in accordance with such reasonable written directions as
may be given by the other; and
	 
	 	e)  	not settle or compromise the Claim, and procure that the Claim is not settled
or compromised, except with the prior written consent of the other which consent
shall not be unreasonably withheld or delayed.

	36.11  	SURVIVAL OF ARTICLE 36
	 
	   	The obligations under this Article 36 shall, as independent and severable obligations,
survive the expiration, termination for any cause or repudiation of this Charterparty.

ARTICLE 37 INSURANCE

	37.1  	Without prejudice to the liabilities, indemnities and obligations of Owners under
Article 36, Owners shall, and shall ensure that their sub-contractors shall, procure and
maintain at their own expense with respect to and for the duration of this Charterparty the
following policies of insurance:

	 	37.1.1  	workmen’s compensation and/or employer’s liability insurance, or coverage of a
comparable nature, to the full extent required by all laws applicable in any
jurisdiction in which operations are to be performed and/or in the contracts of
employment of Owners’ and/or their sub-contractors’ employees and such
insurance shall be effected in an amount of not less than One Million and One
Half Million US dollars (US$1,500,000) per person assigned to the operations
hereunder by Owners;

	 	 	 	 	 
	 

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CHARTERPARTY NO. 102.18.12

	 	37.1.2  	general third party liability insurance against any property damage or destruction
or loss or loss of use and/or any death, illness, disease or personal injury,
physical or mental, caused by, arising out of or in any way connected with the
Performance (as defined in Article 36.1.5g)) of this Charterparty in an amount
of not less than One Million and One Half Million US dollars (US$1,500,000)
for any claim or series of claims arising out of any one incident;
	 
	 	37.1.3  	All Risks Hull and Machinery Insurance, on full conditions, including war risks
and full collision liability, with a limit of not less than the full replacement value
of the Vessel and all other associated equipment of any description to be
furnished by Owners hereunder; and
	 
	 	37.1.4  	Protection and Indemnity cover (including cover for removal of wrecks and
debris) in an amount sufficient to cover Owners’ liabilities pursuant to Article 36.

	37.2  	GENERAL INSURANCE REQUIREMENTS

	 	37.2.1  	All insurances required under Article 37.1 shall be on terms and conditions
issued by insurance companies or underwriters acceptable to Enterprise.
	 
	 	37.2.2  	Not later than the commencement date of this Charterparty, Owners shall
furnish to Enterprise evidence that all insurances required under Article 37.1
have been duly effected and shall provide certified copies of the certificates of
policies relating thereto which certificates shall incorporate any exclusions.
Renewal or replacement insurer’s certificates shall be obtained by Owners as
and when necessary and certified copies thereof shall be forwarded promptly to
Enterprise.
	 
	 	37.2.3  	To the extent of their respective liabilities and indemnities under Article 36
Enterprise shall procure that its insurers shall waive all rights of subrogation
against Owners and Owners’ sub-contractors and their respective directors,
officers and employees and Owners shall procure that their insurers and such
sub-contractors’ insurers waive all rights of subrogation against Enterprise, the
Consortium Members and their respective directors, officers and employees.
	 
	 	37.2.4  	Owners shall ensure that Enterprise (identified as leader and operator on behalf
of the Consortium Members) is named as an additional insured on the policies
which Owners are required to effect under Articles 37.1.2 and 37.1.4 with
respect to the risks and liabilities assumed by Owners under this Charterparty.
A cross-liabilities clause shall be incorporated in the insurance required under
Articles 37.1.2 and 37.1.4.
	 
	 	37.2.5  	All insurance policies shall be endorsed to provide Enterprise with prior notice
of cancellation or material change.
	 
	 	37.2.6  	The insurance limits specified in Article 37.1 are minimum requirements and
shall not be construed as a limitation of liability or as constituting acceptance by
Enterprise of liability in excess of such limits.

	 	 	 	 	 
	

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	 	37.2.7  	Any policy deductibles and/or excesses applicable to the insurances required
hereunder shall be for the account of Owners.
	 
	 	37.2.8  	Prior to any sub-contractor of Owners commencing operations hereunder
Owners shall ensure, and shall demonstrate to Enterprise, that such sub-contractor has effected and shall maintain in force employer’s liability,
workmen’s compensation and other insurances required by Article 37.1.1,
together with such other insurance as Owners may consider necessary. Any
deficiencies in the cover or policy limits of such sub-contractors’ insurances
shall be the sole responsibility of Owners. In Articles 37.2.8 and 37.2.9 all
references to sub-contractors shall include sub-contractors of sub-contractors.
	 
	 	37.2.9  	If Owners (or any sub-contractor) do not take out or maintain in force any
insurance required under the provisions of Article 37 or provide Enterprise with
a certified copy of the relevant certificate of policy, then without prejudice to
any other rights or remedies available to it, Enterprise shall be entitled to take
out and maintain in force such insurance as Enterprise may, in its absolute
discretion, deem necessary to protect Enterprise’s interests and to pay the
premium or premiums of, and other costs incurred in placing, such insurance.
All amounts so paid by Enterprise shall immediately become due and payable to
Enterprise by Owners and Enterprise shall be entitled to deduct such amounts
from any sums due or which may become due to Owners under this
Charterparty or to recover same as a debt.
	 
	 	37.2.10  	Each Party shall give the other prompt notification of any claim with respect to
any of the insurance policies specified in Article 37.1, accompanied by full
details of the incident giving rise to such claim.
	 
	 	37.2.11  	Each Party shall afford the other all such assistance as may be reasonably
required for the preparation and negotiation of insurance claims arising out of or
in connection with this Charterparty.

ARTICLE 38 GENERAL AVERAGE

Notwithstanding any other provision of this Charterparty, in no circumstances whatsoever,
howsoever arising, shall Enterprise be liable to make any general average contribution to
Owners in respect of any act to rescue the Vessel and/or any cargo on the Vessel from any
common danger arising while the Vessel is on hire to Enterprise under this Charterparty.

ARTICLE 39 INDEPENDENT CONTRACTOR

Owners shall act as an independent contractor with respect to Enterprise. All personnel
assigned to the operations hereunder shall be employees or sub-contractors of Owners or
employees of sub-contractors and shall not be or be deemed to be employees of Enterprise.

	 	 	 	 	 
	

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ARTICLE 40 SHIPS DOCUMENTS

	40.1  	Owners shall procure that a full set of Ship’s Certificates shall be kept on board the
Vessel at all times and which shall be made available for inspection as required by
Enterprise.
	 
	40.2  	The Master shall keep a full and correct log of the voyage or voyages in the English
language, which shall be open to Enterprise or its agents as required, and shall furnish to
Enterprise or its agents a true copy of the Vessel’s log books and properly completed
loading and discharging port sheets and voyage reports for each voyage and such other
returns as Enterprise may require.

ARTICLE 41 HEALTH, SAFETY AND ENVIRONMENT

	41.1  	Owners shall have a clear and comprehensive health (including substance abuse), safety
and environment (hereinafter “HSE”) policy and management arrangements appropriate
to their activities and as required by applicable statutes, bye-laws and other rules and
regulations having the force of law or which are otherwise consistent with good and
prudent oilfield practices and shall, if requested by Enterprise, provide Enterprise’s
authorised representatives with access to or copies of any documentation relating to
Owners’ HSE policy and management arrangements and their implementation in respect
of the operations hereunder for Enterprise’s review and agreement.
	 
	41.2  	Owners shall observe and comply, and shall ensure that all passengers, and persons
either employed or supplied by Owners to perform the operations hereunder, observe
and comply, with its HSE policy, procedures and practices.
	 
	41.3  	Owners shall take all measures necessary to provide safe working conditions and to
protect against personal injury, damage to equipment and materials and pollution of the
environment. Owners shall adequately instruct all passengers, and persons either
employed or supplied by Owners to perform the operations hereunder, in all applicable
HSE procedures and in the use of safety equipment.
	 
	41.4  	If and when so required by any applicable statutory regulations or requirements, by any
governmental authority, in conformance with applicable oil industry guidelines approved
by Enterprise, or at Enterprise’s reasonable request, Owners shall at their own expense
arrange for the Master, officers and crew to undergo medical examination by a doctor
familiar with the offshore industry appointed or approved by Enterprise. Should Owners
fail to have complied with the terms of this Article 41.4 and any such persons require
emergency, unscheduled evacuation from the Vessel for medical treatment, Owners
shall, in addition to any other obligation or liability they may have to Enterprise at law
or hereunder, reimburse Enterprise any costs incurred by Enterprise arising out of or in
connection with such evacuation, including, without limitation, the cost of hiring a
helicopter and/or vessel to effect such evacuation.
	 
	41.5  	Owners shall procure that any personnel who are under the influence of alcohol, drugs or
prohibited substances shall not be allowed on or to remain onboard the Vessel.
	 
	41.6  	Smoking and the use of naked lights and other sources of ignition are prohibited at any
time when the Vessel or any part of the Vessel is within five hundred metres of any

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12

	  	offshore installation owned by or chartered by Enterprise and Owners shall ensure such prohibition is observed.
	 
	41.7  	Smoking and the use of naked lights and other sources of ignition are at all times
prohibited in other than designated areas on the Vessel when the Vessel is carrying
dangerous cargoes.

ARTICLE 42 LIEN

Owners shall have a lien upon all cargoes, freights and bunkers for any amounts due under this
Charterparty and Enterprise shall have a lien on the Vessel for all monies paid in advance and
not earned and for all claims for damages arising from any breach by Owners of any of the
terms of this Charterparty. The provision of this clause excludes the disputed part of any
invoices under dispute.

ARTICLE 43 SALVAGE

	43.1  	The Vessel shall be permitted to deviate at all times to assist ships in distress and for the
purpose of saving life at sea without prior approval of or notice to Enterprise and
without loss of hire provided however, that notice of such deviation is given as soon as
possible.
	 
	43.2  	Subject to Article 43.4, all salvage and assistance to other vessels shall be for Owners’
and Enterprise’s equal benefit after deducting the Master’s and crew’s proportions and
all legal and other expenses including fuel consumed, repairs of damage not otherwise
Insured and Owners’ loss of hire. Enterprise shall be bound by all measures taken by
Owners in order to secure payment of salvage and determine its amounts.
Notwithstanding the foregoing, Enterprise shall not be responsible for any damage or
loss which may arise out of any such salvage or assistance.
	 
	43.3  	Enterprise agrees and if within its control shall so arrange that all salvage assistance
shall be on the terms of Lloyds Open Form 2000 “No Cure - No Pay”. Except for the
purposes of saving life the Vessel shall not engage upon any salvage operation without
the prior consent of Enterprise, which shall not be unreasonably withheld.
	 
	43.4  	Owners waive all their rights to any salvage award payable should the Vessel provide
any salvage service in respect of any vessel, her cargo or wreck owned wholly or
partially by Enterprise or any Consortium Member or in respect of the lives of any
persons being directors, officers, employees, servants or agents of Enterprise or the
Consortium Members, when in danger.

ARTICLE 44 NOT USED

ARTICLE 45 SUB-CHARTER

	45.1  	Enterprise shall have the right at any time during the Charter to enter into a sub-charter
agreement for the use of the Vessel by a third party. During the period of the sub-

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12 

	   	charter Owners shall operate the Vessel in accordance with the instructions of the sub-charterer, whose name, contact details and sub-charter duration shall be provided to
Owners by Enterprise. Unless otherwise expressly agreed between the Parties their
liabilities and obligations under this Charterparty shall continue in full force and
effect for the duration of any sub-charter. No sub-charter shall relieve Owners of their
responsibilities for the full and proper performance of operations during the sub-charter
period.
	 
	45.2  	At Enterprise’s request Owners shall seek sub-charter opportunities for the Vessel and
may propose sub-charters to Enterprise. Enterprise shall have the right to accept or
decline proposed sub-charter arrangements. In the event that Enterprise agrees to a sub-charter arranged by Owners then the Owners shall arrange sub-charter documentation, in
a form to be determined by Enterprise, for execution by Enterprise and the sub-charterer. Owners shall be entitled to a brokerage fee of 1.5% of the sub-charter rate
which may be invoiced monthly in arrears. Enterprise and Owners will share on an
equal basis any sublet revenue over and above the Vessel day rate as defined in Schedule
II, (excluding any extra crew costs or other direct costs incurred by Owners as a direct
consequence of this sub-let). Any on/off hire survey fee and/or commissions payable to
shipbrokers as a result of such sub-lets shall be payable equally by Enterprise and
Owner.

ARTICLE 46 PROPRIETARY INFORMATION

	46.1  	As used herein, the term Proprietary Information shall mean all information which
Owners, their sub-contractors and the directors, officers and employees of each of them,
directly or indirectly, acquire from Enterprise or from the performance of this
Charterparty or any other information concerning the technical and business activities
and know-how of Enterprise. Owners shall not disclose and shall procure that its sub-contractors and the directors, officers and employees of each of them shall not disclose
any Proprietary Information to any third party nor use Proprietary Information except as
Enterprise may otherwise authorise in writing.
	 
	46.2  	The obligations under this Article 46 shall, as independent and severable obligations,
survive the expiration, termination for any cause or repudiation of this Charterparty.

ARTICLE 47 ASSIGNMENTS AND SUB-CONTRACTS

	47.1  	Notwithstanding any other provisions of this Charterparty, Owners shall not assign this
Charterparty in whole or in part or sub-contract or permit any sub-contractor to sub-contract any
of Owners rights or obligations hereunder without the prior consent of
Enterprise, which consent shall not be unreasonably withheld or delayed. Enterprise
shall have the right to assign this Charterparty to any of the Consortium Members, such
right to be exercised by notice to Owners. Assignment by Enterprise to any other third
party shall be subject to the consent of Owners, which consent shall not be unreasonably
withheld or delayed. Enterprise shall have the right to sub-charter the Vessel in
accordance with the provisions of Article 45.
	 
	47.2  	Notwithstanding Enterprise’s consent to sub-contract under Article 47.1, no contract
shall relieve Owners from any of their obligations or liabilities under this Charterparty

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12 

	   	and Owners shall be liable for the acts, defaults and omissions of any sub-contractor,
its directors, officers and employees as fully as if they were the acts, defaults or
omissions of Owners, their directors, officers or employees.
	 
	47.3  	Every sub-contract entered into by Owners shall contain a provision permitting
assignment thereof to Enterprise.

ARTICLE 48 FORCE MAJEURE

	48.1  	A delay in or failure of performance of any one or more of its obligations by either
Party shall not constitute default hereunder nor give rise to any claim for damage if such delay
or failure is wholly and directly caused by any occurrence which the affected Party is
unable to prevent by the exercise of reasonable diligence, the continuation of which, by
the exercise of reasonable diligence the affected Party is unable to control and the
consequences of which the affected Party is unable to prevent, provided that the affected
Party gives prompt notice to the other Party specifying the circumstances constituting the
occurrence and has used all reasonable endeavours to minimise the effects thereof. For
the avoidance of doubt, equipment breakdown shall not be considered a force majeure
event.
	 
	48.2  	If such a delay in or failure of performance causes the suspension of operations
hereunder for a continuous period of fourteen (14) days Enterprise shall be entitled at
any time thereafter to terminate this Charterparty forthwith by notice to Owners without
penalty.

ARTICLE 49 NON-WAIVER

Neither Party’s right to require strict performance in accordance with the terms of this
Charterparty shall be affected or waived by any failure by it to enforce any of the terms hereof.

ARTICLE 50 NOTICES AND REPRESENTATIVES

	50.1  	Any notice required or permitted to be given hereunder shall be in writing and shall be
deemed to have been properly given by a Party if delivered personally to the other Party
or if sent by telex or prepaid mail or telefax to the other Party at that other Party’s
address as it appears on the first page of this Charterparty or at any other address
designated in writing by the receiving Party as the address to which notices are to be
sent hereunder.
	 
	50.2  	Notice shall be deemed to have been received and effective:

	 	a)  	if delivered by hand - at the time of delivery;
	 
	 	b)  	if sent by telex - at the time the answerback of the addressee appears at the
foot of such telex;
	 
	 	c)  	if sent by mail or recorded delivery - at the time of receipt by the addressee
of such delivery or two (2) business days after the date of mailing whichever occurs
first; or

	 	 	 	 	 
	

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 CHARTERPARTY NO. 102.18.12 

	 	d)  	if sent by telefax - at the time specified on the transmission report, or
in the event such time is outside normal working hours at 0930 hours on the first business day
after the day of transmission.

ARTICLE 51 COMMISSION

	51.1  	Owners shall pay to Derrick Offshore (1994) Ltd (hereinafter referred to as “Derrick
Offshore”) a commission at the rate of 1.25 per cent of the Hire payable by Enterprise
under this Charterparty during the first two years of the Charter period, thereafter
reducing to 1.00 per cent for years 3 to 8 inclusive and further reducing to 0.50 per cent
in year nine and thereafter. Payment of commission will be due quarterly in arrears.
	 
	51.2  	Enterprise shall have the right at any time to deduct any commissions owed to Derrick
Offshore from Hire payments and account for these amounts directly with Derrick
Offshore whereupon Derrick Offshore shall have no claim on Owners.

ARTICLE 52 ENTIRE AGREEMENT

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

ARTICLE 53 GOVERNING LAW

This Charterparty shall be governed by and construed in accordance with the laws of Brazil.

ARTICLE 54 ARBITRATION

	54.1  	Any dispute, controversy or claim (whether based in contract, tort or otherwise) arising
out of or in connection with this Charterparty, or the breach, termination or validity
thereof, shall be settled by final and binding arbitration in accordance with the
arbitration rules of the International Chamber of Commerce (the “ICC”) as presently in
force. Unless otherwise agreed in writing by the Parties, the following terms shall
apply in respect of any such arbitration:

	 	a)  	The arbitration shall be heard and determined by one arbitrator, who shall be
appointed in accordance with the ICC Rules.
	 
	 	b)  	The arbitration shall take place in Rio de Janeiro, Brazil, and all disputes
shall be determined in accordance with the laws of Brazil.
	 
	 	c)  	The English language shall be used in the arbitral proceedings. The English
language text of this Charterparty shall be used in the arbitral proceedings.
	 
	 	d)  	The award of the arbitrator will be the whole and exclusive remedy regarding
any and all disputes arising in connection with this Charterparty and shall not be
appealable. The award of the arbitrator may, however, be enforced by

	 	 	 	 	 
	

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CHARTERPARTY NO. 102.18.12

	 	   	application to any proper court with jurisdiction. Further, any party to the
arbitration may request a court of competent jurisdiction to grant a temporary
restraining order or temporary injunction in respect of the subject matter of the
claim or dispute pending arbitration pursuant to this Article 54, including
measures to preserve the status quo pending resolution of such claim or dispute,
to prevent the destruction of documents and other information related to such
claim or dispute, and to prevent the transfer, dissipation, or hiding of assets;
and a request for such interim measures to a judicial authority shall not be deemed
to be incompatible with the agreement to arbitrate or a waiver of the right to
arbitrate.

	54.2  	In the event arbitration arising out of this Charterparty is initiated, the prevailing
party to the arbitration, after the entry of the final non-appealable order, shall be entitled
to recover from the other party, as a part of said order, all court costs, fees and
expenses of such arbitration (or litigation), including, without limitation, reasonable
attorneys’ fees.

	 	 	 	 	 
	

	 	Page 37
	 	General Terms and conditions

 

 

 CHARTERPARTY NO. 102.18.12

ATTACHMENT 1 - MEMORANDUM OF AGREEMENT

	 	 	 	 	 
	

	 	Page 38
	 	General Terms and Conditions

 

 

MEMORANDUM OF AGREEMENT

           [As per date of Charterparty]

Dated:

Norwegian Shipbrokers’
Association’s Memo-

[ILLEGIBLE] it for sale and purchase of

[ILLEGIBLE] he Baltic and International

Maritime Council (BIMCO) in 1956.

Code-name

SALEFORM 1993

Revised 1966, 1983 and
1986/87.

[Owner] hereinafter called the Sellers, have agreed to sell, and

[Charterer] hereinafter called the Buyers, have agreed to buy

Name:

Classification Society/Class:

	 	 	 
	Built:

	 	By:
	 
	 	 
	Flag:

	 	Place of Registration:
	 
	 	 
	Call Sign:

	 	Grt/Nrt:

Register Number:

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, or telefax. or other
modern form of written communication.

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

	1.  	Purchase Price [As per Schedule II of the
Charterparty - Compensation]
	 
	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 banking days from the date of this Agreement. This deposit
shall be placed with 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 at the full USD value on the day of payment 
free of bank
charges to [Owners Bank]
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 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 10 working days of
declaring option to purchase.
	 
	   	The Sellers shall provide for inspection of the Vessel at/in
Rio State.
	 
	   	The Buyers shall undertake the inspection without undue delay
to the Vessel. Should the

This Contract is a computer
generated copy of the SALEFORM 1993 form, printed under license from
the Norwegian Shipbrokers’
Association, using the BIMCO Charter Party Editor. Any insertion or
deletion to the form must be clearly visible. In event of any
modification being made to the preprinted text of this document,
which is not clearly visible, the original document, as recommended by
BIMCO, shall apply. The Norwegian Shipbrokers’ Association and BIMCO assume no responsibility for any loss or damage caused as a
result of discrepancies between the original document of and this document.

- Copyright: Norwegian Shipbrokers’ Association, Oslo, Norway.

	 	 	 
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Buyers cause undue delay they shall compensate the
Sellers for the losses thereby incurred.

     The Vessel shall remain on hire under Charterparty dated [ ] between Sellers and Buyers during
the period of inspection.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.
	 
	*  	4a) 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 Sellers shall deep the Buyers well informed of the Vessel’s itinerary and shall provide the Buyers with and 10
days notice of the estimated time of arrival 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
	 
	   	in the Sellers, option.

     Expected
time of delivery: within 120 days of Buyers exercising its option to purchase as per Article
27.1.1 of the Charter Party.

     Date
of cancelling (see Clauses 5 c), 6 b) (iii) and 14): 120 days plus 30 days of Buyers exercising their
option to purchase as per Articles 27.1.1 and 27.1.4 of the Charter
Party.

	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*.

	 	 	 
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This Contract is a computer
generated copy of the SALEFORM 1993 form, printed under license from
the Norwegian Shipbrokers’ Association, using, the BIMCO Charter Party Editor. Any insertion or
deletion to the form must be clearly visible. In event of any
modification being made to the preprinted text of this document,
which is not clearly visible, the original document as recommended by
BIMCO, shall apply. The Norwegian Shipbrokers’ Association and BIMCO assume no responsibility for any loss or damage caused as a
result of discrepancies between the original document and this document.

 

 

	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 survey or 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

	 	 	 
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This Contract is a computer
generated copy of the SALEFORM 1993 form, printed under license from
the Norwegian Shipbrokers’ Association, using the BIMCO Charter Party
Editor. Any insertion or deletion to the form must be clearly visible. In event of any
modification being made to the preprinted text of this document,
which is not clearly visible, the original document as recommended by
BIMCO, shall apply. The Norwegian Shipbrokers’ Association and BIMCO assume no responsibility for any loss or damage caused as a
result of discrepancies between original document and this document.

 

 

	   	

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 as per the inventory of spares supplied by the shipbuilders. All spare parts and spare equipment
additional to the original spare parts supplied by the
shipbuilder, including spare tail-end shaft(s) and/or
spare
propeller(s)/propeller blade(s) all being spare to the Vessel, if any, belonging to the Vessel at the time of
inspection used or
unused, whether on board or not shall  where unused, be purchased
by Buyers at the price paid by Sellers,
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 and 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 at cost paid
by the Sellers. 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):

Insofar as they are not already the property of the Buyers, the

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
[TBN](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 stale 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

	 	 	 
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This Contract is a computer
generated copy of the SALEFORM 1993 form, printed under license from
the Norwegian Shipbrokers’
Association, using the BIMCO Charter Party Editor. Any insertion or
deletion to the form must be clearly visible. In event of any
modification being made to the preprinted text of this document, which
is not clearly visible, the original document as recommended by
BIMCO, shall apply. The Norwegian shipbrokers’ Association and BIMCO assume no responsibility for any loss or damage caused as a
result of discrepancies between the original document and this document.

 

 

	   	

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

	9.  	Encumbrances

Unless otherwise
agreed 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. In so far as it
is possible, sellers will take all reasonable steps to
minimise any tax liability Buyers may incur in connection with the
purchase of the vessel, subject
always to the legality of such actions, and their being no adverse
cost implication to sellers.

	11.  	Condition on delivery

The Vessel with everything belonging to her shall be at the Sellers’ risk and expense 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 inspection, 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
unexpended without condition/recommendation* by Class or the relevant
authorities for a minimum period of
6 months after 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.
	 
	12.  	Name/markings

Upon delivery the Buyers
undertake to may change the name of the Vessel and alter
funnel markings if not
already in Enterprise colours.

	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.

	 	 	 
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This Contract is a computer
generated copy of the SALEFORM 1993 form, printed under license from
the Norwegian Shipbrokers’
Association, using the BIMCO Charter Party Editor. Any insertion or
deletion to the form must be clearly visible. In event of any
modification being made to the preprinted text of this document, which
is not clearly visible, the original document as recommended by
BIMCO, shall apply. The Norwegian shipbrokers’ Association and BIMCO assume no responsibility for any loss or damage caused as a
result of discrepancies between the original document and this document.

 

 

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 this 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 toss 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 up to 30 days
prior to delivery.  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 Rio de Janeiro, under ICC Rules with the English language to be used in the Arbitral proceedings. 
London in accordance with the Arbitration Acts 1950 and 1979 on 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 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 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.

	 	 	 
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This Contract is a computer
generated copy of the SALEFORM 1993 form, printed under license from
the Norwegian Shipbrokers’
Association, using the BIMCO Charter Party Editor. Any insertion or
deletion to the form must be clearly visible. In event of any
modification being made to the preprinted text of this document, which
is not clearly visible, the original document as recommended by
BIMCO, shall apply. The Norwegian shipbrokers’ Association and BIMCO assume no responsibility for any loss or damage caused as a
result of discrepancies between the original document and this document.

 

 

CHARTERPARTY NO. 102.18.12

SCHEDULE II

COMPENSATION

	1.0  	GENERAL
	 
	1.1  	In consideration of provision and operation of the Vessel and other goods and services
in accordance with terms of this Charterparty, Owners shall be compensated in accordance with
the terms of this Schedule II at the rates, lump sums and charges set herein.
	 
	1.2  	With the exception of the operation cost Day rate of the Newbuild Vessel and the passenger
rate, which shall be readjusted in accordance with Clause 6.1 and 6.2, all rates and charges
shall be fixed and firm for the duration of the Charter.
	 
	1.3  	Enterprise will pay Owners the Hire due under the terms of this Charterparty which is
inclusive of all the relevant Brazilian value added or sales taxes which are chargeable in
respect of goods or services supplied by Owners. All rates, fees and prices, including
purchase option prices are inclusive of all taxes and contributions. No taxes or
contributions are payable by Enterprise in addition to either the Hire or any purchase price
set out or calculated in accordance with this Schedule II.
	 
	1.4  	Rates and fees set out herein are inclusive of ISS at the rate of 1 % and PIS/COFINS at the
combined rate of 3.65%. If, during the term of this Charterparty, any of the following events
occurs: creation of new indirect taxes; extinction of existing indirect taxes; alteration of
indirect tax rates; or institution of tax incentives of any nature; which tend to increase or
decrease the indirect tax burden on Owners, then Owners will immediately notify Enterprise and
parties shall proportionately adjust the prices listed within Schedule II for such increase or
decrease as appropriate to maintain net remuneration as in effect as of the event written
above.
	 
	1.5  	Owners agree that no payment made by Enterprise under the terms of this Charterparty shall
constitute, or shall be construed to constitute, the acceptance of the validity of any charge
or the waiver of any right to claim repayment, unless and until Enterprise’s audit rights with
respect thereto, as set forth in the General Terms and Conditions, shall have expired, and
such invoice, charge or payment shall not have been challenged.
	 
	1.6  	Where any goods or services are to be compensated on a reimbursable basis Owners shall
record all months/days/hours worked on timesheets/service tickets. An authorised
Enterprise representative shall be asked to sign these timesheets/service tickets as a record
of performance or supply. Enterprise will only accept liability to pay for months/days/hours
recorded on such signed timesheets /service tickets and payable in accordance with the terms
of this Charterparty. This includes any accommodation and meal charges for passengers onboard
the supply vessel.
	 
	1.7  	Day rates where applicable shall, unless otherwise specified,
be per calendar day and any part thereof shall be charged pro rata. Any combination of day rates applicable in a single
day shall be charged at the highest applicable rate.

	 	 	 	 	 
	 

	 	Page 1
	 	Compensation

 

 

CHARTERPARTY NO. 102.18.12

	1.8  	Monthly rates where applicable shall be per calendar month and any part thereof shall be
pro-rated based on a thirty (30) day month.
	 
	1.9  	The rates, lump sums and charges set forth in Schedule II shall include all costs incurred
as a result of Owners providing the associated services onshore and offshore including
attendance at Enterprise’s planning/progress meetings.
	 
	2.0  	PERSONNEL
	 
	2.1  	Compensation to Owners as set out in this Schedule II is inclusive of, but not limited to:

	 	a)  	wages, personal accident and sickness payments, pensions, bonuses, overheads;
	 
	 	b)  	profits and other costs associated with payments made by Owners to its
personnel and subcontractors;
	 
	 	c)  	provision of protective clothing and hand tools;
	 
	 	d)  	all travel related expenses incurred by the Owners’ personnel travelling
to/from the vessel;
	 
	 	e)  	time spent by Owners’ personnel in travelling to/from the vessel;
	 
	 	f)  	time spent training and cost of training personnel.

	3.0  	INVOICING
	 
	3.1  	All invoices shall be submitted to the following address unless otherwise notified in writing
by Enterprise:

Enterprise Oil do Brasil Limitada

Praia de Botafogo 440 - 22° andar

Botafogo

Rio de Janeiro

RJ 22250-040

Brazil

Marked for the attention of the Accounts Payable.

	3.2  	Each invoice submitted by Owners shall specify and be supported by contract number and such
other documentation as Enterprise may reasonably require in order to verify the correctness of
the items invoiced. To the extent said invoices are properly presented and correct and subject
to the provisions of this Agreement, Enterprise shall pay invoices within thirty (30) days of
their receipt. To the extent that said invoices are not properly presented and correct then
Enterprise shall pay the undisputed portion and notify the Owners the reason for disputing the
balance.
	 
	3.3  	Expenses incurred by Owners in Dollar (US$) for the provision and operation of the Vessel and
provision of other goods and services in accordance with the terms of this Charterparty’ may
be expressed in Dollar (US$) and reimbursed by Enterprise in Reais (R$), provided that:

	 	(i)  	such expenses were legally and directly incurred in
Dollar (US$) by Owners and;

	 	 	 	 	 
	 

	 	Page 2
	 	Compensation

 

 

CHARTERPARTY NO. 102.18.12

	 	(ii)  	upon Enterprise’s request, which may occur at anytime, Owners
shall present satisfactory evidence of the declaration above, i.e., that such
expenses it incurred were outside Brazil and in Dollar (US$).

Owners shall invoice in Brazilian Reais (R$) and Enterprise shall make payment in Brazilian
Reais. Any rates, lumps sums and charges set forth in Schedule II which are not denominated
in Brazilian. Reais shall be converted to Brazilian Reais at the exchange rate current at
date of invoice. The exchange rate used for US Dollars (US$) shall be the average of the
buy and sell exchange rates reported by the Banco Central do Brasil on SISBACEN Data System
under transaction code PTAX-800 (“Consultas de Câmbio” or Exchange Rate Inquiry), Option 5
(“Cotações para Contabilidade” or Rates for Accounting Purposes), unless otherwise agreed
between the Parties.

Any deviation, caused by exchange rate fluctuations, between the exchange rate for the day
used to prepare the Owner’s Invoice and the exchange rate that Enterprise’s payment is
received by Owner shall be credited or debited as a monthly value and corrected by a credit
note or invoice on a three monthly basis.

	4.0  	INTERIM VESSEL — RATES
	 
	4.1  	The Hire for the Interim Vessel shall be:

Provision of Vessel US$          14,671.00 per day

plus

Operation
of Vessel US$          2,288.00 per day

	4.2  	The rate for passengers on the Interim Vessel shall be:

US$ 42.00 per 24 hours on board

	4.3  	The Hire set out in 4.1 shall apply from the Interim Vessel Delivery date until the planned
Newbuild Vessel Delivery Date as set out in Article 4.2.3 of the General Terms and Conditions.
If the Newbuild Vessel Delivery Date is delayed, other than in accordance with Enterprise’s
instructions, and takes place after the planned Newbuild Vessel Delivery Date as set out in
Article 4.2.3 of the General Terms and Conditions then the Hire set out in 4.1 above shall be
reduced by 10% for the duration of the first month of delay and for each of the next two
months of delay the Hire applicable in the previous month shall be reduced by a further 10% of
the Hire set out in 4.1. The Hire applicable in the third month of delay shall remain
applicable until the Newbuild Vessel Delivery Date.

	 	 	 	 	 
	 

	 	Page 3
	 	Compensation

 

 

CHARTERPARTY NO. 102.18.12

	5.0  	NEWBUILD VESSEL — RATE
	 
	5.1  	The Hire and passenger rates for the Newbuild Vessel shall be as
follows:

	 	A.  	For a 5 year fixed term:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	HIRE	 	 	 	 
	 	 	 	 	Provision of	 	 	Operation of	 	 	 	 
	 	 	 	 	Vessel	 	 	Vessel	 	 	Passenger	 
	 	Year	 	 	US$/day	 	 	US$/day	 	 	US$/24hrs	 
	 	1

	 	 	 	12,365.00	 	 	 	Crew: 1,925.00
Other: 1,878.00
	 	 	 	42.00	 	 
	 	2

	 	 	 	12,365.00	 	 	 	Crew: 1,925.00
Other: 1,878.00
	 	 	 	42.00	 	 
	 	3

	 	 	 	12,365.00	 	 	 	Crew: 1,925.00
Other: 1,878.00
	 	 	 	42.00	 	 
	 	4

	 	 	 	12,365.00	 	 	 	Crew: 1,925.00
Other: 1,878.00
	 	 	 	42.00	 	 
	 	5

	 	 	 	12,365.00	 	 	 	Crew: 1,925.00
Other: 1,878.00
	 	 	 	42.00	 	 
	 

	 	B.  	Optional:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	6

	 	 	 	12,215.00	 	 	 	Crew: 1,925.00
Other: 1,878.00
	 	 	 	42.00	 	 
	 	7

	 	 	 	12,215.00	 	 	 	Crew: 1,925.00
Other: 1,878.00
	 	 	 	42.00	 	 
	 	8

	 	 	 	12,215.00	 	 	 	Crew: 1,925.00
Other: 1,878.00
	 	 	 	42.00	 	 
	 	9

	 	 	 	12,215.00	 	 	 	Crew: 1,925.00
Other: 1,878.00
	 	 	 	42.00	 	 
	 	10

	 	 	 	12,215.00	 	 	 	Crew: 1,925.00
Other: 1,878.00
	 	 	 	42.00	 	 
	 	11

	 	 	 	12,215.00	 	 	 	Crew: 1,925.00
Other: 1,878.00
	 	 	 	42.00	 	 
	 	12

	 	 	 	12,215.00	 	 	 	Crew: 1,925.00
Other: 1,878.00
	 	 	 	42.00	 	 
	 	13

	 	 	 	12,215.00	 	 	 	Crew: 1,925.00
Other: 1,878.00
	 	 	 	42.00	 	 
	 

	5.2  	The Hire for the Newbuild Vessel shall be applicable from the
Newbuild Vessel Delivery Date.

	 	 	 	 	 
	 

	 	Page 4
	 	Compensation

 

 

CHARTERPARTY NO. 102.18.12

	6.0  	READJUSTMENT
	 
	6.1  	The proportion of the day rate for the operation of the Newbuild Vessel attributable to crew
costs is to be adjusted after 3 years from the commencement of the Newbuild Vessel charter and
annually thereafter to reflect the salary increase, awarded to seafarers in Brazil, and
shall be evidenced as being applicable throughout the Owner’s Brazilian fleet. The
readjustment is to be mutually agreed between the Owner and Enterprise.
	 
	6.2  	The none crew cost element of the daily operating cost and the passenger rate shall also be
subject to readjustment, by mutual agreement, after 3 years from the commencement of the
Newbuild Vessel charter.
	 
	7.0  	NEWBUILD VESSEL — PURCHASE BY ENTERPRISE
	 
	7.1  	Enterprise shall have the right to purchase the Newbuild Vessel at the following prices,
applicable during each year after the commencement of the Charter. If Enterprise requires the
Owners to continue to manage the Newbuild Vessel after purchase by Enterprise then the Vessel
Management rates, for each year after the commencement of the Charter, given below shall
apply. Enterprise’s right to purchase shall be effective at the end of each year of the
charter and Enterprise shall give at least one hundred and twenty [120] days notice of its
intention to purchase the Newbuild Vessel:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Purchase Price	 	 	Vessel Management Fee	 
	 	Year	 	 	US$	 	 	US$ per year	 
	 	1

	 	 	 	26,750,000	 	 	 	 	114,583	 	 
	 	2

	 	 	 	25,700,000	 	 	 	 	114,583	 	 
	 	3

	 	 	 	24,500,000	 	 	 	 	114,583	 	 
	 	4

	 	 	 	23,400,000	 	 	 	 	114,583	 	 
	 	5

	 	 	 	22,215,000	 	 	 	 	114,583	 	 
	 	6

	 	 	 	21,050,000	 	 	 	 	114,583	 	 
	 	7

	 	 	 	19,900,000	 	 	 	 	1l4,583	 	 
	 	8

	 	 	 	18,725,000	 	 	 	 	114,583	 	 
	 	9

	 	 	 	17,560,000	 	 	 	 	114,583	 	 
	 	10

	 	 	 	16,400,000	 	 	 	 	114,583	 	 
	 	11

	 	 	 	15,250,000	 	 	 	 	114,583	 	 
	 	12

	 	 	 	14,075,000	 	 	 	 	114,583	 	 
	 	13

	 	 	 	12,900,000	 	 	 	 	114,583	 	 
	 

	7.2  	The purchase price will be subject to the payment and exchange rate adjustment principles
set out in clauses 3.1 to 3.3, however, the correction credit note or invoice will be issued
within 10 days of the Owner receiving payment for the vessel.
	 
	7.3  	The Vessel Management Fee shall exclude the costs of:

	 	a)  	Hull and Machinery insurance and P&I insurance
	 
	 	b)  	Maintenance, repair, overhaul and drydocking
	 
	 	c)  	Crew and other direct vessel costs

	 	 	 	 	 
	 

	 	Page 5
	 	Compensation

 

 

CHARTERPARTY NO. 102.18.12

	 	d)  	Vessel’s operational consumables (excluding housekeeping, telecomms and the like)

These costs shall be the responsibility of Enterprise, to procure or reimburse at
Enterprise’s option, following purchase of the Newbuild Vessel.

	7.4  	The cost of crew provided under vessel management, if requested by Enterprise, will be at the
daily rate quoted in Clause 5.1A and subject to readjustment in
accordance with Clause 6.1.
	 
	7.5  	The Vessel Management Fee shall be subject to readjustment, by mutual agreement, after 6
years from the commencement of the Newbuild Vessel Charter.
	 
	8.0  	ENTERPRISE RE-IMBURSABLES
	 
	8.1  	Reimbursable bunkers and any other goods or services provided by Owners in accordance with
Enterprises instructions shall be charged to Enterprise at net cost paid by Owners.
	 
	9.  	TERMINATION FEE
	 
	9.1  	In the event of termination of this Charterparty by Enterprise in accordance with
the provisions of Articles 35.2 f) or 35.3 of the General Terms and Conditions then
the applicable Termination Fee shall be payable to Owners as follows:

	 	 	 	 	 	 	 	 
	 
	 	Year	 	 	Termination Fee US$	 
	 	1

	 	 	Not applicable
	 
	 	2

	 	 	Not applicable
	 
	 	3

	 	 	Not applicable
	 
	 	4

	 	 	 	1,353,456	 	 
	 	5

	 	 	 	343,064	 	 
	 

	9.2  	Years shall be calculated from the date of commencement of the Charter.
	 
	10.  	MEZZANINE DECK ALTERATION

In the event that Gulf Marine do Brasil Limitada are contracted by Enterprise for the
Provision of ROV Services to support the production operations in the Bijupira and Salema
fields, the additional costs for the provision of the Mezzanine Deck on the Newbuild Vessel,
in accordance with the specification included in Schedule I, will be absorbed by Gulf Marine
do Brasil Limitada. If not contracted for the ROV Services, the additional costs, for the
mezzanine deck alteration, supported by adequate documentation from the builders, will be
reimbursed by Enterprise.

	 	 	 	 	 
	 

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	 	Compensation<PAGE>

                                                                    EXHIBIT 10.1

                          DIRECTOR COMPENSATION SUMMARY

                     (to be effective as of January 1, 2005)

Employee directors receive no additional compensation other than their normal
salary for serving on the Board or its committees. Non-employee directors
receive $45,000 annually and $2,000 for each Board meeting attended. In
addition, they are paid $10,000 per year for chairing a committee (other than
the chairman of the Audit Committee who is paid $15,000 per year) and $2,000 for
each committee meeting attended. Expenses for Company-related business travel
are either paid or reimbursed by the Company. Outside directors also receive an
initial grant, upon first election or appointment, and an annual grant of shares
of Common Stock with a value of approximately $75,000.

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