Document:

Exhibit 10.3.1

 

Code word
for this Charter Party

"SHELLTIME
4"

 

Issued December 1984 amended
December 2003

 

Time Charter Party

New York

[Date], 2005

 

IT IS THIS DAY AGREED between              
of            (hereinafter referred to as “Owners”), being
owners of the good motor vessel called [“OVERSEAS ANN”] (hereinafter referred
to as “the vessel”) described as per Clause 1 hereof and                      
of               
(hereinafter referred to as “Charterers”):

 

Description
And Condition of Vessel

 

1.      At the date of delivery of the vessel under this charter and
throughout the charter period:

 

(a)    she shall be classed by a Classification Society which is a
member of the International Association of Classification Societies;

 

(b)    she shall be in every way fit to carry no heat crude
petroleum and/or its dirty products; such as no heat Fuel Oil and Orimulsion in
accordance with vessels class certificates, coating manufacturers resistance
list and in accordance with the vessels stability trim and stress requirements.

 

(c)     she shall be tight, staunch, strong, in good order and
condition, and in every way fit for the service, with her machinery, boilers,
hull and other equipment (including but not limited to hull stress calculator,
radar, computers and computer systems) in a good and efficient state;

 

(d)    her tanks, valves and pipelines shall be oil-tight;

 

(e)     she shall be in every way fitted for burning IFO and MDO (if
applicable), in accordance with the grades specified in Clause 29 hereof;

 

(f)     she shall comply with the regulations in force so as to
enable her to pass through the Suez Canal by day and night without delay;

 

(g)     she shall have on board all certificates, documents and
equipment required from time to time by any applicable law to enable her to perform
the charter service without delay;

 

(h)    she shall comply with the description in the Questionnaire
88, appended hereto provided however that if there is any conflict between the
provisions of this questionnaire and any other provision, including this Clause
1, of this charter such other provisions shall govern;

 

(i)      her flag, registry, and classification society shall not be
changed;

 

(j)     Owners will operate:

 

(i)      a safety management system certified to comply with the
International Safety Management Code (“ISM Code”) for the Safe Operation of
Ships and for Pollution Prevention;

 

(ii)     a documented safe working procedures system (including
procedures for the identification and mitigation of risks);

 

(iii)    a documented environmental management system;

 

(iv)   documented accident/incident reporting system compliant with
flag state requirements;

 

 

(k)    Owners shall maintain Health Safety Environmental (“HSE”)
records sufficient to demonstrate compliance with the requirements of their HSE
system and of this charter.  Charterers
reserve the right to confirm compliance with HSE requirements by audit of
Owners.

 

Shipboard
Personnel and their Duties

 

2.      (a)    At the date of delivery of the
vessel under this charter and throughout the charter period:

 

(i)      she shall have a full and efficient complement of master,
officers and crew for a vessel of her tonnage, who shall in any event be not
less than the number required by the laws of the flag state and who shall be
trained to operate the vessel and her equipment competently and safely;

 

(ii)     all shipboard personnel shall hold valid certificates of
competence in accordance with the requirements of the law of the flag state;

 

(iii)    all shipboard personnel shall be trained in accordance with
the relevant provisions of the International Convention on Standards of
Training, Certification and Watchkeeping for Seafarers, 1995 or any additions,
modifications or subsequent versions thereof;

 

(iv)   (See Clause 91).

 

(v)    the terms of employment of the vessel’s staff and crew will
always remain acceptable to The International Transport Worker’s Federation and
the vessel will at all times carry a Blue Card; (See Clause 50e).

 

(vi)   the nationality of the vessel’s officers will not change
without Charterers’ prior agreement.

 

(b)    Owners guarantee that throughout the charter service the master
shall with the vessel’s officers and crew, unless otherwise ordered by
Charterers;

 

(i)      prosecute all voyages with the utmost despatch;

 

(ii)     render all customary assistance; and

 

(iii)    load and discharge cargo as rapidly as possible when
required by Charterers or their agents to do so, by night or by day, but always
in accordance with the laws of the place of loading or discharging (as the case
may be) and in each case in accordance with any applicable laws of the flag
state.

 

Duty to
Maintain

 

3.      (a)    Throughout the charter service
Owners shall, whenever the passage of time, wear and tear or any event (whether
or not coming within Clause 27 hereof) requires steps to be taken to
maintain or restore the conditions stipulated in Clauses 1 and 2(a),
exercise due diligence so to maintain or restore the vessel.

 

(b)    If at any time whilst the vessel is on hire under this
charter the vessel fails to comply with the requirements of Clauses 1, 2(a)
or 10 then hire shall be reduced to the extent necessary to indemnify
Charterers for such failure. If and to the extent that such failure affects the
time taken by the vessel to perform any services under this charter, hire shall
be reduced by an amount equal to the value, calculated at the rate of hire, of
the time so lost.

 

Any reduction of hire under this sub-Clause
(b) shall be without prejudice to any other remedy available to Charterers,
but where such reduction of hire is in respect of time lost, such time shall be
excluded from any calculation under Clause 24.

 

 

(c)     If Owners are in breach of their obligations under Clause
3(a)), Charterers may so notify Owners in writing and if, after the expiry
of 30 days following the receipt by Owners of any such notice, Owners have
failed to demonstrate to Charterers’ reasonable satisfaction the exercise of
due diligence as required in Clause 3(a), the vessel shall be
off-hire, and no further hire payments shall be due, until Owners have so
demonstrated that they are exercising such due diligence.

 

(d)    Owners shall advise Charterers immediately, in writing,
should the vessel fail an inspection by, but not limited to, a governmental
and/or port state authority, and/or terminal and/or major charterer of similar
tonnage. Owners shall simultaneously advise Charterers of their proposed course
of action to remedy the defects which have caused the failure of such
inspection (see clause 57).

 

(e)     If, in Charterers reasonably held view:

 

(i)      failure of an inspection, or,

 

(ii)     any finding of an inspection,

 

referred to in Clause 3(d), prevents
normal commercial operations then Charterers have the option to place the
vessel off-hire from the date and time that the vessel fails such inspection,
or becomes commercially inoperable, until the date and time that the vessel
passes a re-inspection by the same organisation, or becomes commercially
operable, which shall be in a position no less favourable to Charterers than at
which she went off-hire.

 

(f)     Furthermore, at any time while the vessel is off-hire under
this Clause 3 (with the exception of Clause 3(e)(ii)),
Charterers have the option to terminate this charter by giving notice in
writing with effect from the date on which such notice of termination is
received by Owners or from any Later date stated in such notice.  This sub-Clause (f) is without
prejudice to any rights of Charterers or obligations of Owners under this
charter or otherwise (including without limitation Charterers’ rights under Clause
21 hereof).

 

Period,
Trading Limits and Safe Places

 

4.      (a)    Owners agree to let and
Charterers agree to hire the vessel for a period of (See clause 93).  The last firm period shall having a tolerance
of plus or minus 30 days in Charterers’ option commencing from the time and
date of delivery of the vessel under the Memorandum of Agreement (the “MOA”)
dated     , 2005, for the purpose of carrying all lawful
merchandise (subject always to Clause 28) including in particular:

 

Crude oil and its dirty products including no
heat fuel Oil and Orimulsion in any part of the world, as Charterers shall
direct, subject to the limits of the current British Institute Warranties and
any subsequent amendments thereof excluding countries under U.N. and/or U.S.
sanctions/embargoes.  The vessel may
trade to war zones, with Owners consent which not to be unreasonably withheld,
in which case, Charterers to pay for the additional premium.  Notwithstanding the foregoing, but subject to
Clause 35, Charterers may order the vessel to ice-bound waters or to any
part of the world outside such limits provided that Owner’s consent thereto
(such consent not to be unreasonably withheld) and that Charterers pay for any
insurance premium required by the vessel’s underwriters as a consequence of
such order.

 

(b)    Any time during which the vessel is off-hire under this
charter may be added to the last firm charter period in Charterers’ option up
to the total amount of time spent off-hire. 
In such cases the rate of hire will be that prevailing at the time the
vessel would, but for the provisions of this Clause, have been redelivered.

 

(c)     Charterers shall use due diligence to ensure that the vessel
is only employed between and at safe places (which expression when used in this
charter shall include ports, berths, wharves, docks, anchorages, submarine
lines, alongside vessels or lighters, and other locations including locations
at sea) where she can safely lie always afloat. 
Notwithstanding anything contained in this or any other clause of this
charter, Charterers do not warrant the safety of any place to which they order
the vessel and shall be under no 

 

 

liability in respect thereof except for loss
or damage caused by their failure to exercise due diligence as aforesaid.  Subject as above, the vessel shall be loaded
and discharged at any places as Charterers may direct, provided that Charterers
shall exercise due diligence to ensure that any ship-to-ship transfer
operations shall conform to standards not less than those set out in the latest
published edition of the ICS/OCIMF Ship-to-Ship Transfer Guide.

 

(d)    The vessel shall be delivered by Owners at a safe port or at
sea in Charterer’s option and redelivered to Owners at one safe port or at sea,
worldwide at Charterer’s option.

 

(e)     The vessel will deliver with last cargo of crude and/or its
dirty products and will redeliver with last cargo of crude and/or its dirty
products

 

(f)     Charterers are required to give Owners 30 days prior
approximate notice of redelivery and 5/3/2/1 day(s) definite notice of
redelivery and place.

 

Laydays/Canceling

 

5.      The delivery of the vessel under this charter shall be
deemed to have occurred and this Charter shall be effective as of the date of
the delivery of the vessel from the Sellers to the Buyers (Owners) under the
terms of the MOA Between                   
and                     
dated                  ,
2005.

 

The vessel may be on a voyage or time charter at the
time of delivery. Charterers accept this Charter subject to such charters
(which become sub-charters to this time charter) upon delivery. Furthermore,
notwithstanding anything to the contrary contained in this charter, including
but not limited to Clause 1 hereof, the charterer accepts the vessel in the
condition it is in at the time of delivery, including the vetting status, and
agrees that at such time the vessel satisfies the standard set forth in Clause
1.

 

Owners to
Provide

 

6.      Owners undertake to provide and to pay for all provisions,
wages (including but not limited to all overtime payments), and shipping and
discharging fees and all other expenses of the master, officers And crew; also,
except as provided in Clauses 4 and 34 hereof, for all insurance
on the vessel, for all Deck, cabin and engine-room stores, and for water
(limited to crew only); for all drydocking, overhaul, maintenance and repairs
to the vessel. Owners’ obligations under this Clause 6 extend to all
liabilities for customs or import duties arising at any time during the
performance of this charter in relation to the personal effects of the master,
officers and crew, and in relation to the stores, provisions and other matters
aforesaid which Owners are to provide and pay for and Owners shall refund to
Charterers any sums Charterers or their agents may have paid or been compelled
to pay in respect of any such liability.  Any amounts allowable in general average for
wages and provisions and stores shall be credited to Charterers insofar as such
amounts are in respect of a Period when the vessel is on-hire.

 

Charterers
to Provide

 

7.      (a)     Charterers shall provide and pay
for all fuel (except for fuel used for domestic services), towage and pilotage
and shall pay agency fees, port charges, commissions, expenses of loading and
unloading cargoes, canal dues, and tax/dues on cargo/freight and all charges
other than those payable by Owners in accordance with Clause 6 hereof,
provided that all charges for the said items shall be for Owners’ account when
such items are consumed, employed or incurred for Owners’ purposes or while the
vessel is off-hire (unless such items reasonably relate to any service given or
distance made good and taken into account under Clause 21 or 22);
and provided further that any fuel used in connection with a general average
sacrifice or expenditure shall be paid for by Owners. OPA charges to be paid by
Charterers, COFR to be arranged and paid for by Owners.

 

(b)    In respect of bunkers consumed for Owners’ purposes these
will be charged on each occasion by Charterers on a “first-in-first-out” basis
valued on the prices actually paid by Charterers.

 

 

(c)     If the trading limits of this charter include ports in the
United States of America and/or its protectorates then Charterers shall
reimburse Owners for port specific charges relating to additional premiums
charged by providers of oil pollution cover, when incurred by the vessel
calling at ports in the United States of America and/or its protectorates in
accordance with Charterers orders. The liability to reimburse Owners shall not
apply where the OPA charges has arisen through the actions of the Owner.

 

Rate of
Hire

 

8.      (See Clause 99).

 

Payment of
Hire

 

9.      Subject to Clause 3 (c) and 3 (e), payment of
hire shall be made in immediately available funds to:             

 

Account:       

 

 

in United States Dollars per calendar month
in advance, less:

 

(i)      any hire paid which Charterers reasonably estimate to relate
to off-hire periods, and,

 

(ii)     any amounts disbursed on Owners’ behalf, any advances and
commission therein, and charges which are for Owners’ account pursuant to any
provision hereof, and;

 

(iii)    any amounts due or reasonably estimated to become due to
Charterers under Clause 3(c) or 24 hereof,

 

any such adjustments to be made at the due
date, which shall be the 27th day of the preceding month for which
payment is being made, for the next monthly payment after the facts have been
ascertained. Charterers shall not be responsible for any delay or error by
Owners’ bank in crediting Owners’ account provided that Charterers have made
proper and timely payment.

 

In default of such proper and timely payment:

 

(a)    Owners shall notify Charterers of such default and
Charterers shall within seven days of receipt of such notice pay to Owners the
amount due, including interest, failing which Owners may withdraw the vessel
from the service of Charterers without prejudice to any other rights Owners may
have under this charter or otherwise; and;

 

(b)    Interest on any amount due but not paid on the due date
shall accrue from the day after that date up to and including the day when
payment is made, at a rate per annum which shall be 1% above the U.S. Prime
Rate as published in the Wall Street Journal as effective for each day the
amount is outstanding, or, if no such interest rate is published for a given day,
the interest rate published for the next preceding day for which such a rate
was so published, computed on an actual/365 basis.

 

Space
Available to Charterers

 

10.    The whole reach, burthen and decks on the vessel and any
passenger accommodation (including Owners’ suite) shall be at Charterers’
disposal, reserving only proper and sufficient space for the vessel’s master,
officers, crew, tackle, apparel, furniture, provisions and stores.

 

 

Segregated
Ballast

 

11.    In connection with the Council of the European Union
Regulation on the Implementation of IMO Resolution A747(18) Owners will ensure
that the following entry is made on the International Tonnage Certificate
(1969) under the section headed “remarks”.

 

“The segregated ballast tanks comply with the
Regulation 13 of Annex 1 of the International Convention for the Prevention of Pollution
from Ships, 1973, as modified by the Protocol of 1978 relating thereto, and the
total tonnage of such tanks exclusively used for the carriage of segregated
water ballast is           .  The reduced gross tonnage which should be
used for the calculation of tonnage based fees is           ”.

 

Instructions
and Logs

 

12.    Charterers shall from time to time give the master all
requisite instructions and sailing directions, and the master shall keep a full
and correct log of the voyage or voyages, which Charterers or their agents may
inspect as required.  The master shall
when required furnish Charterers or their agents with a true copy of such log
and with properly completed loading and discharging port sheets and voyage
reports for each voyage and other returns as Charterers may require.  Charterers shall be entitled to take copies
at Owners’ expense of any such documents which are not provided by the master.  Owner’s crew to be trained to operate and to
utilize Charter Operations System (CHOPS) as directed by Charterer.

 

Bills of
Lading

 

13.    (a)    The master (although appointed
by Owners) shall be under the orders and direction of Charterers as regards
employment of the vessel, agency and other arrangements, and shall sign Bills
of Lading as Charterers or their agents may direct (subject always to Clauses 35(a)
and 40) without prejudice to this charter.  Charterers hereby indemnify Owners against
all consequences or liabilities that may arise;

 

(i)      from signing Bills of Lading in accordance with the
directions of Charterers or their agents, to the extent that the terms of such
Bills of Lading fail to conform to the requirements of this charter, or (except
as provided in Clause 13(b) from the master otherwise complying
with Charterers’ or their agents’ orders;

 

(ii)     from any irregularities in papers supplied by Charterers or
their agents.

 

(b)    Notwithstanding the foregoing, Owners shall not be obliged
to comply with any orders from Charterers to discharge all or part of the
cargo:

 

(i)      at any place other than shown on the Bill of Lading and/or

 

(ii)     without presentation of an original Bill of Lading

 

unless they receive from Charterers both
written confirmation of such orders and an indemnity in a form acceptable to
Owners (See Clause 49).

 

Conduct of
Vessel’s Personnel

 

14.    If Charterers complain of the conduct of the master or any
of the officers or crew, Owners shall immediately investigate the
complaint.  If the complaint proves to be
well founded, Owners shall, without delay, make a change in the appointments
and Owners shall in any event communicate the result of their investigations to
Charterers as soon as possible.

 

 

Bunkers at
Delivery and Redelivery

 

15.    There shall be no physical payment for bunkers on board at
the time of delivery.  Owners shall on
redelivery (whether it occurs at the end of the charter or on the earlier
termination of this charter) accept and pay for all bunkers remaining on board,
at the price actually paid, on a “first-in-first-out” basis.  Such prices are to be supported by paid
invoices.

 

Vessel to be delivered to and redelivered
from the charter with, at least, a quantity of bunkers on board sufficient to
reach the nearest main bunkering port.

 

Notwithstanding anything contained in this
charter all bunkers on board the vessel shall, throughout the duration of this
charter, remain the property of Charterers and can only be purchased on the
terms specified in the charter at the end of the charter period or, if earlier,
at the termination of the charter.

 

Stevedores,
Pilots, Tugs

 

16.    Stevedores, when required, shall be employed and paid by
Charterers, but this shall not relieve Owners from responsibility at all times
for proper stowage, which must be controlled by the master who shall keep a
strict account of all cargo loaded and discharged.  Owners hereby indemnify Charterers, their
servants and agents against all losses, claims, responsibilities and
liabilities arising in any way whatsoever from the employment of pilots,
tugboats or stevedores, who although employed by Charterers shall be deemed to
be the servants of and in the service of Owners and under their instructions
(even if such pilots, tugboat personnel or stevedores are in fact the servants
of Charterers their agents or any affiliated company); provided, however, that:

 

(a)    the foregoing indemnity shall not exceed the amount to which
Owners would have been entitled to limit their liability if they had themselves
employed such pilots, tugboats or stevedores, and;

 

(b)    Charterers shall be liable for any damage to the vessel
caused by or arising out of the use of stevedores, fair wear and tear excepted,
to the extent that Owners are unable by the exercise of due diligence to obtain
redress therefor from stevedores.

 

Super-Numeraries

 

17.    Charterers may send representatives in the vessel’s
available accommodation upon any voyage made under this charter, Owners finding
provisions and all requisites as supplied to officers, except alcohol.  Charterers paying at the rate of United
States Dollars 20 (twenty) per day for each representative while on board the
vessel.

 

Sub-letting/Assignment/Novation

 

18.    Charterers may sub-let the vessel, but shall always remain
responsible to Owners for due fulfilment of this charter.

 

Final
Voyage

 

19.    If when a payment of hire is due hereunder Charterers
reasonably expect to redeliver the vessel before the next payment of hire would
fall due, the hire to be paid shall be assessed on Charterers’ reasonable
estimate of the time necessary to complete Charterers’ programme up to
redelivery, and from which estimate Charterers may deduct amounts due or
reasonably expected to become due for:

 

(a)    disbursements on Owners’ behalf or charges for Owners’
account pursuant to any provision hereof, and;

 

(b)    bunkers on board at redelivery pursuant to Clause 15.

 

Promptly after redelivery any overpayment
shall be refunded by Owners or any underpayment made good by Charterers.

 

 

If at the time this charter would otherwise
terminate in accordance with Clause 4 the vessel is on a ballast
voyage to a port of redelivery or is upon a laden voyage, Charterers shall
continue to have the use of the vessel at the same rate and conditions as stand
herein for as long as necessary to complete such ballast voyage, or to complete
such laden voyage and return to a port of redelivery as provided by this
charter, as the case may be.

 

Loss of
Vessel

 

20.    Should the vessel be lost, this charter shall terminate and
hire shall cease at noon (GMT) on the day of her loss; should the vessel be a
constructive total loss, this charter shall terminate and hire shall cease at
noon (GMT) on the day on which the vessel’s underwriters agree that the vessel
is a constructive total loss; should the vessel be missing, this charter shall
terminate and hire shall cease at noon (GMT) on the day on which she was last
heard of.  Any hire paid in advance and
not earned shall be returned to Charterers and Owners shall reimburse
Charterers for the value of the estimated quantity of bunkers on board at the
time of termination, at the price paid by Charterers at the last bunkering
port.

 

Off-hire

 

21.    (a)    On each and every occasion that
there is loss of time (whether by way of interruption in the vessel’s service
or, from reduction in the vessel’s performance, or in any other manner):

 

(i)      due to deficiency of personnel or stores; repairs;
gas-freeing for repairs; time in and waiting to enter dry dock for repairs;
breakdown (whether partial or total) of machinery, boilers or other parts of
the vessel or her equipment (including without limitation tank coatings);
overhaul, maintenance or survey; collision, stranding, accident or damage to
the vessel; or any other similar cause preventing the efficient working of the
vessel; and such loss continues for more than three consecutive hours (if
resulting from interruption in the vessel’s service) or cumulates to more than
three hours (if resulting from partial loss of service); or;

 

(ii)     due to industrial action, refusal to sail, breach of orders
or neglect of duty on the part of the master, officers or crew; or;

 

(iii)    for the purpose of obtaining medical advice or treatment for
or landing any sick or injured person (other than a Charterers’ representative
carried under Clause 17 hereof) or for the purpose of landing the
body of any person (other than a Charterers’ representative), and such loss
continues for more than three consecutive hours; or;

 

(iv)   due to any delay in quarantine arising from the master,
officers or crew having had communication with the shore at any infected area
without the written consent or instructions of Charterers or their agents, or
to any detention by customs or other authorities caused by smuggling or other
infraction of local law on the part of the master, officers, or crew; or;

 

(v)    due to detention of the vessel by authorities at home or
abroad attributable to legal action against or breach of regulations by the
vessel, the vessel’s owners, or Owners (unless brought about by the act or
neglect of Charterers); then; without prejudice to Charterers’ rights under Clause 3
or to any other rights of Charterers hereunder, or otherwise, the vessel shall
be off-hire from the commencement of such loss of time until she is again ready
and in an efficient state to resume her service from a position not less
favourable to Charterers than that at which such loss of time commenced;
provided, however, that any service given or distance made good by the vessel
whilst off-hire shall be taken into account in assessing the amount to be
deducted from hire.

 

(vi)   Charterers shall keep owners/master advised of vessels
schedule to allow Owners the opportunity to make use of any idle time for the
purpose of maintenance during the charter. 
Such idle time not to count as off-hire.

 

 

(b)    If the vessel fails to proceed at any guaranteed speed
pursuant to Clause 24, and such failure arises wholly or partly
from any of the causes set out in Clause 21(a) above, then the
period for which the vessel shall be off-hire under this Clause 21
shall be the difference between:

 

(i)      the time the vessel would have required to perform the
relevant service at such guaranteed speed, and;

 

(ii)     the time actually taken to perform such service (including
any loss of time arising from interruption in the performance of such service).

 

For the avoidance of doubt, all time included
under (ii) above shall be excluded from any computation under Clause 24.

 

(c)     Further and without prejudice to the foregoing, in the event
of the vessel deviating (which expression includes without limitation putting
back, or putting into any port other than that to which she is bound under the
instructions of Charterers) for any cause or purpose mentioned in Clause
21(a), the vessel shall be off-hire from the commencement of such deviation
until the time when she is again ready and in an efficient state to resume her
service from a position not less favourable to Charterers than that at which
the deviation commenced, provided, however, that any service given or distance
made good by the vessel whilst so off-hire shall be taken into account in
assessing the amount to be deducted from hire. 
If the vessel, for any cause or purpose mentioned in Clause 21(a),
puts into any port other than the port to which she is bound on the
instructions of Charterers, the port charges, pilotage and other expenses at
such port shall be borne by Owners. 
Should the vessel be driven into any port or anchorage by stress of
weather hire shall continue to be due and payable during any time lost thereby.

 

(d)    If the vessel’s flag state becomes engaged in hostilities,
and Charterers in consequence of such hostilities find it commercially
impracticable to employ the vessel and have given Owners written notice thereof
then from the date of receipt by Owners of such notice until the termination of
such commercial impracticability the vessel shall be off-hire and Owners shall
have the right to employ the vessel on their own account.

 

(e)     Time during which the vessel is off-hire under this charter
shall count as part of the charter period except where Charterers declare their
option to add off-hire periods under Clause 4(b)).

 

(f)     All references to “time” in this charter party shall be
references to GMT except where otherwise stated.

 

(g)     Off hire under this charter refers to both Basic Hire as
well as Additional Hire Payment Amount.  Since
there is no Additional Hire Payment Amount earned for any period the Vessel is
off-hire, there shall not be any deduction of Additional Hire Payment Amount for
any such period of off-hire.

 

Periodical
Drydocking

 

22.    (a)    Owners have the right and
obligation to drydock the vessel at regular intervals not exceeding 5
years.  On each occasion Owners shall
propose to Charterers a date on which they wish to drydock the vessel, not less
than 90 days before such date and Charterers shall offer a port for such
periodical drydocking and shall take all reasonable steps to make the vessel
available as near to such date as practicable.

 

Owners shall put the vessel in drydock at
their expense as soon as practicable after Charterers place the vessel at
Owners’ disposal clear of cargo other than tank washings and residues.  Owners shall be responsible for and pay for
the disposal into reception facilities of such tank washings and residues and
shall have the right to retain any monies received therefor, without prejudice
to any claim for loss of cargo under any Bill of Lading or this charter.

 

(b)    If a periodical drydocking is carried out in the port
offered by Charterers (which must have suitable accommodation for the purpose
and reception facilities for tank washings and residues), the vessel shall 

 

 

be off-hire from the time she arrives at such
port until drydocking is completed and she is in every way ready to resume
Charterers’ service and is at the position at which she went off-hire or a
position no less favourable to Charterers, whichever she first attains.  However:

 

(i)      provided that Owners exercise due diligence in gas-freeing,
any time lost in gas-freeing to the standard required for entry into drydock
for cleaning and painting the hull shall not count as off-hire, whether lost on
passage to the drydocking port or after arrival there (notwithstanding Clause 21),
and;

 

(ii)     any additional time lost in further gas-freeing to meet the
standard required for hot work or entry to cargo tanks shall count as off-hire,
whether lost on passage to the drydocking port or after arrival there.

 

Any time which, but for sub-Clause (i)
above, would be off-hire, shall not be included in any calculation under Clause 24.

 

The expenses of gas-freeing, including
without limitation the cost of bunkers, shall be for Owners account.

 

(c)     If Owners require the vessel, instead of proceeding to the
offered port, to carry out periodical drydocking at a special port selected by
them, the vessel shall be off-hire from the time when she is released to
proceed to the special port until she next presents for loading in accordance
with Charterers’ instructions, provided, however, that Charterers shall credit
Owners with the time which would have been taken on passage at the service
speed had the vessel not proceeded to drydock.  All fuel consumed shall be paid for by Owners
but Charterers shall credit Owners with the value of the fuel which would have
been used on such notional passage calculated at the guaranteed daily
consumption for the service speed, and shall further credit Owners with any
benefit they may gain in purchasing bunkers at the special port.

 

(d)    Charterers shall, insofar as cleaning for periodical
drydocking may have reduced the amount of tank-cleaning necessary to meet
Charterers’ requirements, credit Owners with the value of any bunkers which
Charterers calculate to have been saved thereby, whether the vessel drydocks at
an offered or a special port.

 

Ship
Inspection

 

23.    (See
Clause 83).

 

Detailed
Description and Performance

 

24.    Owners guarantee that the speed and consumption of the
vessel shall be as follows:  (see Clause
78).

 

The bunker consumptions are for all purposes
except cargo heating, purging and tank cleaning and shall be pro-rated between
the speeds shown.

 

Charterer may order the vessel to proceed at
any speed above/below the guaranteed speed, weather and safe navigation
permitting.

 

If the vessel is ordered to proceed at any
speed other than the highest speed and the average speed actually attained by
the vessel during the currency of such order exceeds such ordered speed plus
0.5 knots (the “maximum recognised speed”), then for the purpose of calculating
a decrease of hire under this Clause 24 the maximum recognised
speed shall be used in place of the average speed actually attained.

 

For the purposes of this charter the “guaranteed
speed” at any time shall be the then-current ordered speed or the service
speed, as the case may be.

 

 

The average speeds and bunker consumptions
shall for the purposes of this Clause 24 be calculated by reference
to the observed distance from pilot station to pilot station on all sea
passages during each period stipulated in Clause 24(c), but
excluding any time during which the vessel is (or but for Clause 22(b)(i)
would be) off-hire and also excluding “Adverse Weather Periods”, being:

 

(i)      any periods during which reduction of speed is necessary for
safety in congested waters or in poor visibility;

 

(ii)     any days, noon to noon, when winds exceed force 5 on the
Beaufort Scale for more than 12 hours.

 

(b)    If during any half year (i.e., 6 calendar months) period from
the date on which the vessel enters service and continuing for each succeeding
6 calendar month period thereafter, the vessel falls below the performance
guaranteed in Clause 24(a) then if such shortfall results:

 

(i)      from a reduction in the average speed of the vessel,
compared to the speed guaranteed in Clause 24(a), then an amount
equal to the value at the hire rate of the time so lost  shall be included in the performance
calculation;

 

(ii)     from an increase in the total bunkers consumed, compared to
the total bunkers which would have been consumed had the vessel performed as
guaranteed in Clause 24(a), an amount equivalent to the value of the
additional bunkers consumed or based on the average price paid by Charterers
for the vessel’s bunkers in such period, shall be included in the performance
calculation.

 

The results of the performance calculation
for laden and ballast mileage respectively shall be adjusted to take into
account the mileage steamed in each such condition during Adverse Weather
Periods, by dividing such deduction by the number of miles over which the
performance has been calculated and multiplying by the same number of miles
plus the miles steamed during the Adverse Weather Periods, in order to
establish the total performance calculation for such period.

 

Reduction of hire under the foregoing sub-Clause
(b) shall be without prejudice to any other remedy available to Charterers.

 

(c)     Calculations under this Clause 24 shall be made every
6 months terminating on each successive anniversary of the date on which the
vessel enters service, and for the period between the last such anniversary and
the date of termination of this charter if less than a year.  Claims in respect of reduction of hire arising
under this Clause during the final year or part year of the charter period
shall in the first instance be settled in accordance with Charterers’ estimate
made two months before the end of the charter period. Any necessary adjustment
after this charter terminates shall be made by payment by Owners to Charterers.

 

(d)    Owners and Charterers agree that this Clause 24 is
assessed on the basis that Owners are not entitled to additional hire for
performance in excess of the speeds and consumptions given in this Clause 24.

 

It is understood between Owner and Charterers
that any speed over performance and/or fuel under consumption are to be
credited to any under performance/over consumption during the (6) months review
period, but no over performance and/or under consumption bonus shall be paid to
owners.

 

Salvage

 

25.    Subject to the provisions of Clause 21 hereof, all
loss of time and all expenses (excluding any damage to or loss of the vessel or
tortious liabilities to third parties) incurred in saving or attempting to save
life or in successful or unsuccessful attempts at salvage shall be borne
equally by Owners and Charterers provided that Charterers shall not be liable
to contribute towards any salvage payable by Owners arising in any way out of
services rendered under this Clause 25.

 

 

All salvage and all proceeds from derelicts
shall be divided equally between Owners and Charterers after deducting the master’s,
officers’ and crew’s share.

 

Lien

 

26.    Owners shall have a lien upon all cargoes and all freights,
sub-freights and demurrage for any amounts due under this charter; and
Charterers 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
this charter.

 

Exceptions

 

27.    (a)    The vessel, her master and
Owners shall not, unless otherwise in this charter expressly provided, be
liable for any loss or damage or delay or failure arising or resulting from any
act, neglect or default of the master, pilots, mariners or other servants of
Owners in the navigation or management of the vessel; fire, unless caused by
the actual fault or privity of Owners; collision or stranding; dangers and
accidents of the sea; explosion, bursting of boilers, breakage of shafts or any
latent defect in hull, equipment or machinery; provided, however, that Clauses
1, 2, 3, and 24 hereof shall be unaffected by the
foregoing.  Further, neither the vessel,
her master or Owners, nor Charterers shall, unless otherwise in this charter
expressly provided, be liable for any loss or damage or delay or failure in
performance hereunder arising or resulting from act of God, act of war, seizure
under legal process, quarantine restrictions, strikes, lock-outs, riots,
restraints of labour, civil commotions or arrest or restraint of princes,
rulers or people.

 

(b)    The vessel shall have liberty to sail with or without
pilots, to tow or go to the assistance of vessels in distress and to deviate
for the purpose of saving life or property.

 

(c)     Clause 27(a) shall not apply to, or affect any liability of Owners or
the vessel or any other relevant person in respect of:

 

(i)      loss or damage caused to any berth, jetty, dock, dolphin,
buoy, mooring line, pipe or crane or other works or equipment whatsoever at or
near any place to which the vessel may proceed under this charter, whether or
not such works or equipment belong to Charterers, or;

 

(ii)     any claim (whether brought by Charterers or any other
person) arising out of any loss of or damage to or in connection with cargo.  Any such claim shall be subject to the
Hague-Visby Rules or the Hague Rules or the Hamburg Rules, as the case may be,
which ought pursuant to Clause 38 hereof to have been incorporated in
the relevant Bill of Lading (whether or not such Rules were so incorporated)
or, if no such Bill of Lading is issued, to the Hague-Visby Rules unless the
Hamburg Rules compulsorily apply in which case to the Hamburg Rules.

 

(d)    In particular and without limitation, the foregoing subsections
(a) and (b) of this Clause shall not apply to or in any way affect
any provision in this charter relating to off-hire or to reduction of hire.

 

Injurious
Cargoes

 

28.    No acids, explosives or cargoes injurious to the vessel
shall be shipped and without prejudice to the foregoing any damage to the
vessel caused by the shipment of any such cargo, and the time taken to repair
such damage, shall be for Charterers’ account.  No voyage shall be undertaken, nor any goods
or cargoes loaded, that would expose the vessel to capture or seizure by rulers
or governments.

 

Grade of
Bunkers

 

29.    Charterers shall supply the vessel with IFO 380 CST RMG 35
as per ISO 8217:1996 (E) requirements for Marine residual fuels and MDO (if
applicable) DMB distillate diesel as per ISO 8217:1996 (E) requirements for
Marine distillate fuels.  Specifications
are subject to any revisions of the ISO standards over the term of this charter
(See Clause 62).

 

 

Disbursements

 

30.    Should the master require advances for ordinary
disbursements at any port, Charterers or their agents shall make such advances
to him, in consideration of which Owners shall pay a commission of two and a
half per cent, and all such advances and commission shall be deducted from
hire.

 

Laying-up

 

31.    Charterers shall have the option, after consultation with
Owners, of requiring Owners to lay up the vessel at a safe place nominated by
Charterers, in which case the hire provided for under this charter shall be
adjusted to reflect any net increases in expenditure reasonably incurred or any
net saving which should reasonably be made by Owners as a result of such lay
up.  Charterers may exercise the said
option any number of times during the charter period.

 

Requisition

 

32.    Should the vessel be requisitioned by any government, de
facto or de jure, during the period of this charter, the vessel shall be
off-hire during the period of such requisition, and any hire paid by such
governments in respect of such requisition period shall be for Owners’ account.
 Any such requisition period shall not
count as part of the charter period and the cumulative requisition time may, at
the sole discretion of the Charterer, be added to the end of the firm charter
period at a rate in effect at the time the off hire was incurred.

 

Outbreak
of War

 

33.    If war or hostilities break out between any two or more of
the following countries: U.S.A., the countries or republics having been part of
the former U.S.S.R. (except that declaration of war or hostilities solely
between any two or more of the countries or republics having been part of the
former USSR shall be exempted), P.R.C., U.K., Netherlands, then both Owners and
Charterers shall have the right to cancel this charter provided that the
hostilities directly interfere with the vessels trading under Clause 4.

 

Additional
War Expenses

 

34.    If the vessel is ordered to trade in areas where there is
war (de facto or de jure) or threat of war, Charterers shall reimburse Owners
for any additional insurance premia, crew bonuses and other expenses which are
reasonably incurred by Owners as a consequence of such orders, provided that
Charterers are given notice of such expenses as soon as practicable and in any
event before such expenses are incurred, and provided further that Owners
obtain from their insurers a waiver of any subrogated rights against Charterers
in respect of any claims by Owners under their war risk insurance arising out
of compliance with such orders.

 

Any payments by Charterers under this Clause
will only be made against proven documentation. 
Any discount or rebate refunded to Owners, for whatever reason, in
respect of additional war risk premium shall be passed on to Charterers.

 

War Risks

 

35.    (a)    The master shall not be required
or bound to sign Bills of Lading for any place which in his or Owners’ reasonable
opinion is dangerous or impossible for the vessel to enter or reach owing to
any blockade, war, hostilities, warlike operations, civil war, civil commotions
or revolutions.

 

(b)    If in the reasonable opinion of the master or Owners it
becomes, for any of the reasons set out in Clause 35(a) or by the
operation of international law, dangerous, impossible or prohibited for the
vessel to reach or enter, or to load or discharge cargo at, any place to which
the vessel has been ordered pursuant to this charter (a “place of peril”), then
Charterers or their agents shall be immediately notified in writing or by radio
messages, and Charterers shall thereupon have the right to order the cargo, or
such part of it as may be affected, to be loaded or discharged, as the case may
be, at any other place within the trading 

 

 

limits of this charter (provided such other
place is not itself a place of peril).  If
any place of discharge is or becomes a place of peril, and no orders have been
received from Charterers or their agents within 48 hours after dispatch of such
messages, then Owners shall be at liberty to discharge the cargo or such part
of it as may be affected at any place which they or the master may in their or
his discretion select within the trading limits of this charter and such
discharge shall be deemed to be due fulfilment of Owners’ obligations under
this charter so far as cargo so discharged is concerned.

 

(c)     The vessel shall have liberty to comply with any directions
or recommendations as to departure, arrival, routes, ports of call, stoppages,
destinations, zones, waters, delivery or in any other wise whatsoever given by
the government of the state under whose flag the vessel sails or any other
government or local authority or by any person or body acting or purporting to
act as or with the authority of any such government or local authority
including any de facto government or local authority or by any person or body
acting or purporting to act as or with the authority of any such government or
local authority or by any committee or person having under the terms of the war
risks insurance on the vessel the right to give any such directions or
recommendations.  If by reason of or in
compliance with any such directions or recommendations anything is done or is
not done, such shall not be deemed a deviation. 
If by reason of or in compliance with any such direction or
recommendation the vessel does not proceed to any place of discharge to which
she has been ordered pursuant to this charter, the vessel may proceed to any
place which the master or Owners in his or their discretion select and there
discharge the cargo or such part of it as may be affected. Such discharge shall
be deemed to be due fulfilment of Owners’ obligations under this charter so far
as cargo so discharged is concerned.

 

Charterers shall procure that all Bills of
Lading issued under this charter shall contain the Chamber of Shipping War
Risks Clause 1952.

 

Both to
Blame Collision Clause

 

36.    If the liability for any collision in which the vessel is
involved while performing this charter fails to be determined in accordance
with the laws of the United States of America, the following provision shall
apply:

 

“If the ship comes into collision with
another ship as a result of the negligence of the other ship and any act,
neglect or default of the master, mariner, pilot or the servants of the carrier
in the navigation or in the management of the ship, the owners of the cargo
carried hereunder will indemnify the carrier against all loss, or liability to
the other or non-carrying ship or her owners in so far as such loss or
liability represents loss of, or damage to, or any claim whatsoever of the
owners of the said cargo, paid or payable by the other or non-carrying ship or
her owners to the owners of the said cargo and set off, recouped or recovered
by the other or non-carrying ship or her owners as part of their claim against
the carrying ship or carrier.”

 

“The foregoing provisions shall also apply
where the owners, operators or those in charge of any ship or ships or objects
other than, or in addition to, the colliding ships or objects are at fault in
respect of a collision or contact.”

 

Charterers shall procure that all Bills of
Lading issued under this charter shall contain a provision in the foregoing
terms to be applicable where the liability for any collision in which the
vessel is involved fails to be determined in accordance with the laws of the
United States of America.

 

New Jason
Clause

 

37.    General average contributions shall be payable according to
York/Antwerp Rules, 2000 as amended from time to time, and shall be adjusted in
New York in accordance with New York law and practice.

 

In the event of accident, danger, damage or
disaster before or after the commencement of the voyage, resulting from any
cause whatsoever, whether due to negligence or not, for which, or for the
consequence of which, the carrier is not responsible by statute, contract or
otherwise, the cargo, shippers, consignees or owners of the cargo shall
contribute with the carrier in general average to the payment of any
sacrifices, losses or expenses of 

 

 

a general average nature that may be made or
incurred and shall pay salvage and special charges incurred in respect of the
cargo.

 

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

 

Charterers shall procure that all Bills of
Lading issued under this charter shall contain a provision in the foregoing
terms, to be applicable where adjustment of general average is made in
accordance with the laws and practice of the United States of America.

 

Clause
Paramount

 

38.    Charterers shall procure that all Bills of Lading issued
pursuant to this charter shall contain the following:

 

“(1) Subject to sub-Clause (2) or (3)
hereof, this Bill of Lading shall be governed by, and have effect subject to,
the rules contained in the International Convention for the Unification of
Certain Rules relating to Bills of Lading signed at Brussels on 25th August
1924 (hereafter the “Hague Rules”) as amended by the Protocol signed at
Brussels on 23rd February 1968 (hereafter the “Hague-Visby Rules”).  Nothing contained herein shall be deemed to be
either a surrender by the carrier of any of his rights or immunities or any
increase of any of his responsibilities or liabilities under the Hague-Visby
Rules.”

 

“(2) If there is governing legislation which
applies the Hague Rules compulsorily to this Bill of Lading, to the exclusion
of the Hague-Visby Rules, then this Bill of Lading shall have effect subject to
the Hague Rules.  Nothing therein
contained shall be deemed to be either a surrender by the carrier of any of his
rights or immunities or an increase of any of his responsibilities or liabilities
under the Hague Rules.”

 

“(3) If there is governing legislation which
applies the United Nations Convention on the Carriage of Goods by Sea 1978
(hereafter the “Hamburg Rules”) compulsorily to this Bill of Lading, to the
exclusion of the Hague-Visby Rules, then this Bill of Lading shall have effect
subject to the Hamburg Rules.  Nothing
therein contained shall be deemed to be either a surrender by the carrier of
any of his rights or immunities or an increase of any of his responsibilities
or liabilities under the Hamburg Rules.”

 

“(4) If any term of this Bill of Lading is
repugnant to the Hague-Visby Rules, or Hague Rules, or Hamburg Rules, as
applicable, such term shall be void to that extent but no further.”

 

“(5) Nothing in this Bill of Lading shall be
construed as in any way restricting, excluding or waiving the right of any
relevant party or person to limit his liability under any available legislation
and/or law.”

 

Insurance/ITOPF

 

39.    Owners warrant that the vessel is now, and will, throughout
the duration of the charter:

 

(a)    be owned or demise chartered by a member of the
International Tanker Owners Pollution Federation Limited;

 

(b)    be properly entered in U.K. or GARD P & I Club, being a
member of the International Group of P & I Clubs;

 

(c)     have in place insurance cover for oil pollution for the
maximum on offer through the International Group of P & l Clubs but always
a minimum of United States Dollars 1,000,000,000 (one thousand million);

 

(d)    have in full force and effect Hull and Machinery insurance
placed through reputable brokers on Institute Time Clauses or equivalent for
the market value of the vessel plus twenty (20) percent as from time to time 

 

 

may be amended with Charterers’ approval,
which shall not be unreasonably withheld.  Insurance amount always to comply with loan
covenants.

 

Owners will provide, within a reasonable time
following a request from Charterers to do so, documented evidence of compliance
with the warranties given in this Clause 39.

 

Export
Restrictions

 

40.    The master shall not be required or bound to sign Bills of
Lading for the carriage of cargo to any place to which export of such cargo is
prohibited under the laws, rules or regulations of the country in which the
cargo was produced and/or shipped.

 

Charterers shall procure that all Bills of
Lading issued under this charter shall contain the following clause:

 

“If any laws rules or regulations applied by
the government of the country in which the cargo was produced and/or shipped,
or any relevant agency thereof, impose a prohibition on export of the cargo to
the place of discharge designated in or ordered under this Bill of Lading,
carriers shall be entitled to require cargo owners forthwith to nominate an
alternative discharge place for the discharge of the cargo, or such part of it
as may be affected, which alternative place shall not be subject to the
prohibition, and carriers shall be entitled to accept orders from cargo owners
to proceed to and discharge at such alternative place.  If cargo owners fail to nominate an
alternative place within 72 hours after they or their agents have received from
carriers notice of such prohibition, carriers shall be at liberty to discharge
the cargo or such part of it as may be affected by the prohibition at any safe
place on which they or the master may in their or his absolute discretion
decide and which is not subject to the prohibition, and such discharge shall
constitute due performance of the contract contained in this Bill of Lading so
far as the cargo so discharged is concerned”.

 

The foregoing provision shall apply mutatis
mutandis to this charter, the references to a Bill of Lading being deemed to be
references to this charter.

 

Business
Principles

 

41.    (Deleted)

 

Drugs and
Alcohol

 

42.    (Deleted)

 

Oil Major
Acceptability

 

43.    (See Clause 57)

 

Pollution
and Emergency Response

 

44.    Owners are to advise Charterers of organisational details
and names of Owners personnel together with their relevant
telephone/facsimile/e-mail/telex numbers, including the names and contact
details of Qualified Individuals for OPA 90 response, who may be contacted on a
24 hour basis in the event of oil spills or emergencies.

 

ISPS
Code/US MTSA 2002

 

45.    (See Clause 98).

 

 

Law and
Litigation

 

46.    (a)    This charter shall be construed
and the relations between the parties determined in accordance with the laws of
the State of New York, U.S.A.

 

(b)    All disputes arising out of this charter shall be referred
to Arbitration in New York in accordance with the Rules of the Society of
Marine Arbitrators, Inc. New York (SMA).

 

(i)      Any Award of the arbitrator(s) shall be final and binding
and not subject to appeal.

 

(ii)     For the purposes of this Clause 46(b) any requests or
notices in writing shall be sent by fax, e-mail or telex and shall be deemed
received on the day of transmission.

 

(c)     It shall be a condition precedent to the right of any party
to a stay of any legal proceedings in which maritime property has been, or may
be, arrested in connection with a dispute under this charter, that that party furnishes
to the other party security to which that other party would have been entitled
in such legal proceedings in the absence of a stay.

 

Confidentiality

 

47.    (Deleted)

 

Construction

 

48.    The side headings have been included in this charter for
convenience of reference and shall in no way affect the construction hereof.

 

Additional
Clauses:  Special clauses to Shelltime 4
CP form, 49 through 112 shall be fully incorporated into the terms of this
Charter Party.

 

Appendix A:              Questionaire
88 for the vessel, as attached, shall be incorporated herein.

 

Appendix B:              List
of Approved Ship Brokers, as attached, shall be incorporated herein.

 

 

	
  For
  the Owners

  	
   

  	
  For
  the Charterers

  
	
  [Name
  of Owners]

  	
   

  	
  [Name
  of Charterers]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  (name)

  	
   

  	
   

  	
  (name)

  
	
   

  	
  (title)

  	
   

  	
   

  	
  (title)

  

 

 

TIME CHARTER

SPECIAL CLAUSES

MT OVERSEAS ANN

 

IF THERE IS ANY CONFLICT BETWEEN THE FOLLOWING CLAUSES AND THE PRINTED
CLAUSES OF THE CHARTER PARTY FORM AS ADJUSTED, THE FOLLOWING CLAUSES SHALL
PREVAIL.

 

49)          Bill
of Lading Indemnification

 

The standard form of letter of indemnity to be
given in the case of delivery of cargo (a) without production of the original Bill
of Lading, or (b) at a port other than stated in the Bill of Lading, or (c)
both of the foregoing, in each case without bank guarantee, in revised form as
recommended by the International Group of P&I Clubs in 2001, shall be used
in all cases, provided that the reference to English law and jurisdiction shall
be revised to read New York law and the jurisdiction of any court of competent
jurisdiction sitting in New York County.

 

50)          Certificates/Regulations
Compliance

 

The Owners
warrant that during the term of this charter party the vessel fully complies
with the following:

 

A.    all governmental laws, regulations,
protocols and directives promulgated by the authoritative body or any of its
legally constituted agencies charged with the application of the same
laws/regulations/protocols and directives applicable to the countries and ports
within the trading limits defined in the charter party.

 

B.    that it has secured and maintains aboard
the vessel all Certificates of Financial Responsibility issued and required by
the competent authorities of the countries within the trading limits defined in
the charter party.

 

C.    (Deleted)

 

D.    that the vessel shall
have on board for inspection by the appropriate port authorities
all certificates, records, compliance letters and other documents required.

 

E.    The vessel shall be approved by the
international transport workers federation and carry a valid ITF ‘Blue Certificate’
on board at all times. Any losses, expenses or damages arising as a result of
failure to comply with ITF regulations, as interpreted by local union, shall be
for Owners account.

 

F.     COFR — Owners to provide the vessel, at
their cost, with a valid Certification of Financial Responsibility which is
acceptable to U.S. authorities at Owners’ cost. Compliance with state laws
during the currency of this charter to be Owners’ responsibility and cost. COFR
to be in place prior to the vessels arrival at first U.S. or Canadian port.

 

 

Owners
will pay for the initial cost of issuing and maintaining the certificate. Any
additional premiums or surcharges payable by Owners in relation to the vessel
calling at U.S. ports to be for Charterers account.

 

G.    Owners shall have a program covering oil
pollution avoidance, including compliance with latest international maritime
organization and port state regulations and SOLAS and MARPOL conventions and
the adoption of vessel response plans and qualified individuals for OPA
response.

 

51)          IMO
Clause

 

Owners warrant that during the term of this
charter party and any extension thereof the vessel will be in full compliance
with: the requirements of the United States Port and Tanker Safety Act of 1978
and applicable regulations promulgated thereunder (hereinafter called “U.S. Regulations”) the International
Convention for the Prevention of Pollution from Ships (MARPOL 1973) and the
1978 Protocol thereto as applicable: and the International Convention for Safety
of Lives at Sea (SOLAS 1974) and the 1978 Protocol thereto as applicable (the
foregoing conventions and protocols hereinafter called “IMO Regulations”).
Owners warrant that it will carry onboard certifications evidencing compliance
with U.S. Regulations, compliance with IMO Regulations and any other records or
documentation as may be required by the U.S. government authorities the vessel
is currently ISM certified and will remain so during the duration of this
charter (see ISM Clause).

 

52)          Pollution
Financial Responsibility

 

Owners warrant that at the date of the
charter that Owners complies with all financial capability, responsibility,
security or like laws, regulations and/or other requirements of whatsoever kind
with respect to oil or other pollution damage applicable to the vessel
entering, leaving, remaining at or passing through any ports or places or
waters to perform this charter.

 

Owners further warrant that it shall continue
to comply with these requirements throughout the period of the charter at the
levels and in amounts in effect at the date of this charter.

 

Owners, at its sole risk and expense, shall
make all arrangements by bond, insurance or otherwise and obtain all
certificates or other documentary evidence and take all such other action, as may
be necessary, to satisfy such laws, regulations and/or other requirements.

 

53)          OPA

 

It is mutually understood that Oil Pollution Act
of 1990 (OPA) surcharges for trading to the United States ports/territories
shall be for Charterer’s account.

 

54)          Contingency
Plans Clause

 

Owners warrant at the date of the charter
that Owners complies with and satisfies existing U.S. federal, state and local
rules, regulations and requirements for contingency plans applicable to the
vessel entering, leaving, remaining at or passing through any ports or places
or waters in performance of the charter, including having under contract 

 

 

the services of a catastrophic spill
contractor (e.g., Marine Spill Response Corporation (MSRC) or National Response
Corporation (NRC)).

 

Owners further warrant that it shall continue
to comply with these requirements throughout the period of the charter at the
levels in effect at the date of this charter.

 

The Owners shall be responsible for obtaining
and maintaining all necessary and future approvals and satisfying existing and
future federal, state, and local rules, regulations or requirements for
contingency plans. Costs incurred shall be for Owners’ account.

 

	
  Qualified individual:

  	
  Mr. Steven McCall

  
	
   

  	
  212 578 1892 office

  
	
   

  	
  646 327 7206 mobile

  

 

55)          Documentation

 

Owners undertake that throughout the term of
this charter, the vessel shall have on board all such valid documentation as
may, from time to time, be required to enable the vessel to enter and carry out
all required operations at loading or discharging ports or places and leave,
without hindrance, all ports or places to which the vessel may be directed
under the terms of this charter.

 

In addition, the vessel shall be off-hire
and Owners shall be held responsible for any losses, costs or damages for any
period during which she is not fully and freely available to Charterer as a
result of action taken against her by any government, government organization,
competent authority, competent person or competent organization, owing to her
flag, failure to have on board valid documentation as aforesaid or any dispute
relating to Owners’ wages or crew employment policy or to the condition of the
vessel or her equipment. All cumulative off hire under this Clause may be added
to the end of the charter period in the sole option of the Charterer.

 

Any time lost during which the vessel awaiting USCG TVEL inspection, or
in the case of calls at non-U.S. ports where any similar certificate is
required to be issued by a state authority at these ports prior to loading or
discharging cargo, and until such time as she has secured TVEL certificate or
any similar certificate, vessel will be considered off-hire.

 

56)          ISM
Clause

 

The requirements of the International Safety Management (ISM) Code are
hereby incorporated in the terms of this charter party. Owners/operator warrant
that a Safety Management System (SMS) in accordance with the ISM Code is in
operation both on shore and on board the vessel. Owners/operator further
warrant that they (or the company as defined by the ISM Code) have a valid Document
of Compliance (DOC), and the vessel has a valid Safety Management Certificate (SMC).
Owners/operator shall supply Charterer with a copy of the DOC and the SMC.
Owners shall, when required by Charterer, provide a copy of the documents both
ashore and on board the vessel evidencing the SMS and its application and when
further required by Charterer, Owners/operator shall provide a report on safety
audits carried out internally or by the vessel’s flag administration.

 

Non compliance with the requirements of the ISM code resulting in loss
or suspension of the ISM certificate shall be deemed a breach of condition and Charterer
shall have the 

 

 

right to cancel the charter. Owners shall be responsible for any delays,
costs, damages incurred for non compliance with the above conditions.

 

57)          Vetting

 

During the period of this charter, Charterers require Owners to
endeavor to arrange for at least four of the following oil company
inspections/approvals at their time and expense: BP, Shell, Exxon/Mobil, Chevron
Corp., Vela, PDVSA, Statoil and Dreyfus. 
Charterers may request Owners to obtain other vetting approvals as/when
required, and Owners shall do so.

 

The above is always subject to the vessel’s trading pattern, ports
accessibility, the oil company’s interest in the vessel and the availability of
inspectors at the time, all of which Owners will keep a record of and keep Charterers
advised.

 

Charterers shall keep Owners fully informed
of the vessels forward schedule in order to facilitate vetting inspections.

 

If the vessel, during the period of this
charter, fails to obtain a minimum of four approvals because of Owners
fault/negligence, or fails a physical inspection by any company listed above,
or loses a vetting approval required to maintain the vessels’ trading
pattern, then, Owners shall have a period
of forty five (45) days from the date Owners are notified of such
non-acceptance to have the vessel obtain such minimum number of approvals or
reinstate such approval, subject always to the vessel’s trading pattern,
ports accessibility, the oil company’s interest in the vessel and the
availability of inspectors at the time, all of which Owners will keep a record
of and keep Charterers advised.

 

If the Owners do not obtain the minimum
number of vetting approvals or the necessary vetting approval is not reinstated
as provided for in the preceding paragraphs, and the lack of vettings affect
the vessel’s trading pattern, then the Charterer shall have the right to place
the vessel offhire or terminate this charter party without penalty to either
party.

 

58)          Adherence
to Voyage Instructions

 

A.    Owners shall be responsible to and will
indemnify Charterer for any time, costs, delays or loss suffered by Charterer
due to underlift, overlift or other failure to comply fully with Charterer’s
lawful instructions as long as such failure was solely due to Owners’/vessel’s
proven negligence.

 

B.    If a conflict arises between terminal
orders and Charterers’ instructions, master is to stop cargo operations and to
contact Charterer at once. Terminal orders shall never supersede Charterer’s
instructions and any conflict shall be resolved prior to resumption of cargo
operations.

 

Vessel
is not to resume cargo operations until Charterers has directed vessel to do
so.

 

59)          Traffic
Separation and Routing

 

Owners shall instruct the master to observe
recommendations as to traffic separation and routing as issued from time to
time by authorities (national or local) and comply with 

 

 

federal, state or local regulations of the United
States. Voluntary and mandatory traffic separation schemes shall be adhered to
while the vessel is in the United States or international waters.

 

60)          ETA
Notice

 

Master shall give both Charterer and load/discharge port(s)/place(s)
agents notices of estimated time of arrival (ETA) to load/discharge
port(s)/place(s) or any other port/place where Charterers order vessel to
proceed on a daily basis or as required by Charterers voyage orders.

 

Any delay incurred to the vessel at any load or discharge port(s)
resulting from master’s failure to comply with the above requirements, shall be
deducted from the monthly hire. The foregoing is without prejudice to Charterer’s
right to recover for any damages incurred as a result of such breach by Owners
of the obligations herein defined. Notices of ETA to be sent to Charterer as
instructed. This Clause only applies where the Charterer cannot claim demurrage
or any other claim and incur a loss due to the master’s failure to follow Charterers
instructions.

 

61)          Watchmen

 

Compulsory shore gangway watchmen shall be servants of the Charterer
and the cost for such watchmen shall be borne by Charterer throughout the
currency of this charter party.

 

62)          Bunkers

 

On every
occasion where the bunkers are taken, the ship will participate in either the DNV
VQFT, Lloyds FOBAS or ABS scheme (line samples). As between Owners and Charterers
fuel shall be deemed delivered to the ship upon arrival at the ship’s manifold,
which shall be the point of custody transfer. Three samples will be taken at
the ship’s manifold, using an approved in line drip sampler. One sample shall
be provided to the surveyor and analysed, a second shall be given to the
suppliers, and third shall be retained on board for independent joint testing,
in the event of disputes about the quality of the bunkers supplied.

 

In the event
of dispute about the quality of the fuel the third sample left on board shall
be jointly analysed at a mutually acceptable independent laboratory, and the
results shall be binding on the parties

 

The quantity
of fuel shall be finally determined using the density determined in the sample
analysed. Owners undertake to provide Charterers with a copy of each off
specification analysis report, to enable Charterers to notify suppliers
promptly in the event of a quality or quantity dispute.

 

The supplier
and Charterers shall at all times be entitled to witness the extraction and
division of the sample at the ship’s manifold and shall be entitled to employ a
bunker surveyor.

 

Charterers
shall not cause or permit any lien or other rights to be created against the
ship, her crew, Owners, etc., by any fuel suppliers, or otherwise bind the
ship, her Owners in crew in any way whatsoever, arising out of the supply of
fuels.

 

 

Should
analysis confirm that bunkers are off specification, (as per specification
detailed in Clause 29), Charterers will be notified regarding Owners
intentions. Should Owners decide to use the bunkers supplied then Charterers
are not entitled to present Owners with a speed or consumption claim for any
period during which vessel is using bunkers that do not reasonably meet the
specified requirements. Charterers reserve the right to discuss analysis
results with Owners to ensure an equitable resolution of any problems. Owners shall not be obliged to use fuel that is
injurious to the engine/auxiliaries and associated equipment.

 

Owners warrant
that the vessel shall comply with the emission control and other requirements
of Regulation 14 and 18 of MARPOL Annex VI and any other laws or regulations
relating to bunker content and bunkering procedures applicable in any areas to
which the vessel is ordered.

 

Charterers
warrant that they will supply bunkers:

 

A.    of sufficient quantity and quality to
enable the vessel to meet the emission control and other requirements of Regulation
14 and 18 of MARPOL Annex VI and any other laws or regulations relating to
bunker content and bunkering procedures applicable in any areas to which the
vessel is ordered, and

 

B.    in accordance with the specifications in ISO
8217 as in force at the time of supply and any other specifications contained
elsewhere in this charterparty.

 

Charterers
further warrant that all bunker suppliers and bunkers supplied hereunder shall
with respect to all areas in which the vessel may trade comply with the current
and future requirements of MARPOL Annex VI and MEPC96(47) in respect of
sampling and the provision of a bunker delivery notes and, where bunkers are
supplied in a state where MARPOL Annex VI is in force, that suppliers shall be
registered in accordance therewith.

 

63)          Heating

 

(Deleted)

 

64)          Pumping
Clause

 

Owners warrant that the vessel is fitted with and will use the main
cargo pumps and the stripping pumps as per Charterers instructions.

 

Owners further guarantees that vessel will discharge the full cargo in
twenty four (24) hours, stripping excluded or maintain an average pressure of
100 PSI at the vessel’s manifold during discharge, provided shore facilities
permit. It is agreed that time lost as a result of vessel being unable to
discharge the cargo in accordance with the guarantee stated herein will be
deducted from monthly hire.

 

In the event of the vessel failing to maintain average discharge
pressure of 100 PSI or to discharge the cargo within 24 hours, Charterers are
entitled to deduct all time over and above 24 hours taken to discharge cargo
from hire.

 

Discharge terminal shall have the right to gauge line pressure. Should
the vessel fail to comply with the guarantee herein stipulated should terminal
request, Charterer shall have the right to
order the vessel to be withdrawn from the berth and all time and expenses 

 

 

incurred to leave the berth and return later to complete discharge will
be for Owners’ account with the proven lost time and/or
expenses being deductible from the monthly hire. In any event, Owners shall
provide Charterer with a detailed hourly pumping record showing the pressure
maintained at the vessel’s manifold throughout the discharge. Such record shall
be duly counter signed by a terminal representative and/or independent
surveyor, if possible.

 

If the vessel discharges at more than one
port or discharges a partial cargo, then time to be prorated relative to the
vessel’s full cargo capacity for the nominated cargo(es).

 

Should the discharge terminal(s) restrict in
any way the vessel’s performance indicated in this charter party, the master
shall immediately issue a letter of protest to the terminal indicating the
nature of the restriction and any details he may consider relevant. The vessel
to obtain terminals signature on the letter of protest.

 

65)          STS
Clause

 

Charterers shall have the right to require
the vessel to perform lighterage operations and or ship to ship transfer
operations at anchor or underway at a safe anchorage or place and these ship to
ship transfer operations shall be conducted in accordance with the provisions
of the latest ICS/OCIMF transfer guide (petroleum) always to master’s
acceptance which not to be unreasonably withheld.

 

It is understood and agreed that the crew of
the vessel will be required to assist in handling the fenders and cargo hoses
as well as mooring and unmooring of the vessel as designated by the mooring
master at the STS transfer site at no additional cost to the Charterer.

 

All extra equipment required for such
transfer operations shall be provided by Charterer at its expense.

 

Extra cost of insurance ‘if any’ to be for Charterers
account.

 

66)          Pressure
Gauges

 

 Vessel to be equipped with
pressure gauges at each discharge manifold which will be maintained in a proper
working condition and each gauge shall have a valid test certificate.

 

67)          Bilge
Liquids

 

 Vessel shall have efficient and
safe means of transferring engine room/pump room bilge to designated holding
tanks onboard for disposal in accordance with international regulations.

 

68)          Previous Cargoes

 

(Deleted)

 

69)          Condition
of Cargo Spaces on Delivery and Redelivery

 

Vessel will be redelivered with tanks free of liquid
slops.

 

 

70)          Tanks,
Lines, Pumps Suitability

 

Owners warrant that vessel will arrive at each load port with all cargo
tanks, pumps and lines suitable to load the intended cargo as per Charterer’s
representative and/or independent surveyor’s satisfaction, subject to Charterers
voyage orders and vessels time to comply.  All damages, time lost and costs
incurred due to noncompliance will be for Owners’ account and deducted from
monthly hire.

 

71)          Inert
Gas System

 

Owners warrant that vessel has a good working
inert gas system and that the officers and crew are experienced in the
operation of the system. Owners further warrant that the vessel will arrive at
the load port with cargo tanks inerted and that tanks will remain inerted
throughout the loading, voyage and discharge operations. Any delay, cost and
expense due to improper operation of the inert gas system shall be for Owners’
account and shall be deducted from monthly hire.

 

The master may be required by terminal personnel or independent
surveyor(s) before and/or after discharge to breach the inert gas system for the
purpose of gauging, sampling, temperature determination and/or determining the
quantity of cargo remaining on board (ROB). The master shall comply with these
requests consistent with the safe operation of the vessel. Vessel to remain on
hire for such periods.

 

72)          Crude
Oil Washing (COW)

 

Owners warrant that the vessel is capable of crude oil washing (COW) of
all cargo tanks.

 

If requested by Charterer, Owners agrees to
conduct crude oil washing of cargo tanks at discharge port(s) simultaneously
with the discharge of the cargo to shore. Under no circumstance shall the
vessel utilize more than eight (8) hours to effect COW or prorata on the basis
of the number of tanks washed to the total number of tanks unless authorized by
Charterer.

 

The vessel will comply with the requirements of the Pumping Clause
during simultaneous discharge to shore and the COW operation.  If the vessel fails to comply, all additional
time to discharge the cargo will be deducted from the monthly hire.

 

Owners agrees to comply with applicable port
and terminal regulations and, if necessary, to submit any advance information
or technical data that may be required by local authorities relative to the COW
operations.

 

73)          Fittings,
Equipment and Dimensions

 

A.    Owners warrant that all piping, valves,
spools, reducers and other fittings comprising that portion of the vessel’s
manifold system outboard of the last fixed rigid support to the vessel’s deck
and used in the transfer of cargo, bunkers or ballast, are made of steel or
nodular iron; and the fixed rigid support for the manifold system is designed
to prevent both lateral and vertical movement of the manifold. Owners further
warrant that no more than one reducer or spool piece (each ANSI standard) will
be used between the vessel’s manifold valve and the terminal hose or loading
arm connection.

 

 

B.    Owners are responsible for providing
safety equipment to persons aboard the vessel when the cargo is high sulfur or
otherwise dangerous to the health of the crew.

 

C.    Owners warrant that the vessel is capable
of discharging more than one grade simultaneously.

 

D.    Owners warrant that throughout the
charter vessel will have on board the calibration tables for its tanks
calculated by the builder or by a reputable independent international surveyor.

 

E.    Charterers, subject to Owners’ approval
(which shall not be unreasonably withheld) and class approval, shall be at
liberty to fit any additional pumps and/or other vessel gear beyond what is on
board at the commencement of the charter, and to make the necessary connections
with hydraulic, steam or water pipes, such work to be done at Charterers time
and their expense, and such pumps and/or gear so fitted to be considered their
property, and Charterers shall be at liberty to remove it at their time and
expense and time during or at the expiry of this charter, with the vessel to be
left in her original condition.

 

F.     Vessel is fitted with 95 percent and 98
percent high level alarms.  Any delays
due to breakdown of these high level alarms will be considered off hire and
will be deducted from the charter hire.

 

74)          Cargo
Transference

 

Owners shall notify Charterer of any transfer of cargo within the
vessel that takes place after loading and before discharge for purposes of
trimming, stress or any other similar purposes.

 

75)          Prohibited
Detergent Washing

 

Owners warrant that vessel will not perform cargo tanks washing
utilizing detergents with organic chloride contents throughout the duration of
the charter period. Owners to be held responsible for all damages and
consequences including but not limited to all cargo claims if Owners/master
fails to adhere to this Clause.

 

76)          Cargo
Retention

 

A.    In the event that liquid cargo remains on
board upon completion of discharge Charterers shall have the right to deduct
from hire an amount equal to the fob port of loading cost of such cargo plus
its pro rata cost of freight and insurance unless such cargo is unpumpable or
unreachable by the vessel’s fixed pumps.

 

B.    Nothing in this Clause deprives Owners of
any defenses they have to counterclaims for cargo shortloading or damage but it
is agreed that such counterclaims will not be time barred if asserted in any
proceedings commenced by Owners for hire deducted under this Clause provided
that the deduction was proper.

 

 

C.    Any action or lack of action in
accordance with this provision shall be without prejudice to any rights or
obligations of the parties.

 

D.    All slops throughout the charter term
shall belong to Charterer.

 

77)          Loss
of Carrying Capacity

 

In the event cargo
is shut out by the fault of the master, officers, crew or mechanical deficiency
of the vessel, then Charterer shall be entitled to claim compensation for the
transportation cost of the cargo shut out on a round voyage basis by reference
to the rate of hire or the current market level (whichever is greater). Any
additional port costs and/or bunker consumed due to the loss of carrying
capacity shall for Owners account.

 

78)          Speed
and Fuel Warranties

 

The Owners warrant that the vessel is capable
of maintaining and shall maintain, consistent with safety throughout the period
of this charter party on all sea passages, from seabuoy to seabuoy, unless
otherwise ordered by Charterer, an average speed under weather conditions up to
and including Beaufort Force 5 of about 15.0 knots laden on a daily consumption
of about 103 metric tons IFO 380 CST plus 0 metric tons MDO at sea and about
15.5 knots ballast on a daily consumption of about 82 metric tons IFO 380 CST 0
metric tons MDO at sea for all purposes excluding tank cleaning, cargo heating
and IGS plus about 15 mts IFO for loading and about 100 mts IFO for
discharging, based on single port loading and discharging excluding Laguna and Boscan
crude and similar cargoes.

 

The above speed and consumption rates shall
be adjusted in accordance with, and always be subject to any changes made to
the tankers international pool key.

 

79)          Slow Steaming/Speed Up

 

Weather and safe navigation permitting, Charterer
shall have the right to order the vessel to proceed at any speed greater
than/less than normal full speed.

 

80)          Adjustment
of Hire

 

The speed and fuel
consumption guaranteed by the Owners in Part 1 will be reviewed by the Charterer
30 days after every six (6) months. If at the end of the period, if it is found
that the vessel has failed to maintain, as an average during the period, the
speed and/or fuel consumption warranted, the Charterer shall be retroactively
compensated in respect of such failings, as per Clause 24.

 

No bonus shall be payable to Owners under any
circumstances.

 

The Charterer shall provide Owners with an
opportunity to review any claim submitted by Charterer under this Clause, and
the Owners shall complete such review and provide Charterer with the results
thereof within thirty (30) days from the date such claim was received by Owners.
In the absence of such response, Charterer may deduct from hire any amount to
which it is entitled under this Clause.

 

In the event of Charterer having a claim in
respect of vessel’s performance during the final year of the charter period and
any extension thereof, the amount of such claim shall be withheld from hire in
accordance with Charterer’s estimate made two months before 

 

 

the end of the charter period and any
necessary adjustment after the end of the charter shall be made by the Owners
to the Charterer.

 

81)          Additional
Offhire

 

A.    The vessel shall be offhire whenever
there is loss of time if:

 

1)    due to the boycott of the vessel due to the terms or conditions of
employment of Owners’ servants; or employment, trades, or cargoes of vessels
other than under this charter.

 

2)    due to restraint or interference
in the vessel’s operation by any governmental authority in connection with the ownership,
registration, or obligations of Owners or the vessel, or stowaways, or in
connection with smuggling or other prohibited activities.

 

3)    due to cargo contamination or
damage caused by unseaworthiness of the vessel or negligence of Owners’
servants.

 

B.    In addition, if during offhire the vessel
loses its turn to berth, it shall remain offhire until it regains the same
berthing position. If the vessel goes offhire while in berth, extra expenses
thereby incurred by Charterers in connection with the vessel remaining at the
berth shall be for Owners’ account and Charterers shall also have the option to
order the vessel out of berth, so as to avoid delay to other vessels waiting to
use the berth, with the cost of unberthing and reberthing for this purpose to be for Owners’ account. The vessel shall remain
offhire during time lost in between berths.

 

C.    In the event of detention of vessel by
any governmental authority, or by any legal action against vessel or Owners, or
by any strike or boycott by the vessel’s officers or crew, whereby vessel is
rendered unavailable for Charterers’ service for a period of thirty (30) days
or more, Charterers may, by written notice given before vessel is free and
ready to resume service, elect to terminate this charter, without prejudice to
any other rights Charterers may have under this charter or to any claim it may
have for damages.

 

82)          Off
Hire Survey

 

A joint off hire bunker survey shall be conducted by Charterers and Owners
representatives at the place of redelivery. The time and cost for the offhire
bunker survey at redelivery shall be split equally between owner and Charterer.

 

83)          Access

 

The Charterer shall have the right and
privilege of having their representatives visit the vessel while in port or at
sea. Charterer’s representatives shall have access to the entire vessel
(excluding accommodation spaces) and the master, officers and crew of the
vessel shall cooperate with and render any reasonable assistance that Charterer’s
representatives may require.

 

Charterer shall be entitled, from time to
time during the period of this charter, to cause their representative(s) to
take samples of the cargo and to inspect the vessel in order to 

 

 

ascertain whether Owners is reasonably
complying in all respects with their obligations under this charter party.

 

In the case of inspection of the vessel, Charterer
shall give Owners appropriate notice of their intention to inspect the vessel
and any such inspection may include, but shall not be limited to: examination
of the vessel’s hull, machinery, boilers, auxiliaries and equipment,
examination of the vessel’s deck and engine, rough and official log books,
certificates, investigation of the vessel’s operating procedures both in port
and at sea, examination of the qualifications and conduct of the vessel’s master,
officers and crew. Any inspections carried out by Charterer under this sub-Clause
shall be without prejudice to any other rights of inspection or investigation
allowed to Charterer in accordance with the provisions of this charter.

 

In the event of Owners’ failing, at any time
during the period of this charter, to comply with their obligations under this Clause,
Charterer shall be entitled to give Owners notice in writing, whether or not an
inspection under the terms of this Clause has taken place, requiring Owners to
take immediate steps to remedy their default.

 

In the event the Owners fails forthwith, or
within such period as may be agreed to remedy such default to Charterer’s
satisfaction, Charterer shall be entitled at their absolute discretion, to
place the vessel off-hire, until such default shall have been
satisfactorily remedied. Any exercise of, or failure to exercise, their
discretion under the terms hereof by Charterer shall be without prejudice to
any other remedy available to Charterer.

 

84)          Change of Flag, Management, Ownership

 

Owners rights
and obligations under this charter are not transferable and except as provided
in this Clause Owners undertake not to change the vessel’s management nor flag
nor to sell the vessel or stock in the ownership company without Charterer’s
consent which consent shall not be unreasonably withheld.

 

In
the event that the Owners desire to hire a manager other than Tanker Management Ltd., Owners shall
provide written notice (the “New Manager Notice”) to the Charterer at least 10
business days prior to the proposed date of hire, which notice shall seek the Charterer’s
consent to the new manager.  The Charterer’s
shall have the right, within 5 business days of receipt of the New Manager
Notice, to object to the new manager in writing.  Such objection must be based on reasonable
grounds, and must be accompanied by a list of two comparable managers
(other than any affiliates of Charterer) to which the Charterer would have no
objection, and which Owners may then hire without any further requirement for
consent from Charterer.

 

If
written notice of objection together with the accompanying list of
acceptable managers is not
provided by the Charterer within 10 business days of receiving the New Manager
Notice, the Charterer shall be deemed to consent to the new manager.

 

Owners
shall have the right to transfer the vessel and Charterer agrees that stock in
the Owners may also be transferred (either of which, for purposes of this Clause,
a “Transfer”), subject to the Charterer’s right of first offer as described in
this Clause:

 

Prior
to and in order to effect a Transfer, the Owners shall first give written
notice (a “Sale Notice”) to the Charterer stating (i) the Owners (or its parent’s)
intention to make a Transfer, (ii) the name of a broker who Owners have
selected to be a member of the three member panel described below (the “Panel”)
that will determine the fair market 

 

 

price
of the vessel (on the basis that it is sold subject to this charter) and (iii) the material terms other than price
upon which the Owners (or its parent) intends to make the Transfer.

 

The
Charterer shall select a member of the Panel within 5 business days after
receipt of the Sale Notice by delivery of written notice to Owners.  If Charterer does not make such selection
within such 5 business day period, then the Panel shall consist solely of the
broker selected by Owners.  If Charterer
makes such selection, then the two members selected by Owners and Charterer
shall select together a third member of the Panel within 10 business days after
delivery of Charterer’s written notice to Owners.  If the members selected by Owners and Charterer
do not select a third member of the Panel within such 10 business day period,
then the third member of the Panel shall be selected by the President of the Society
of Marine Arbitrators, Inc. New York.  No
broker is eligible to be selected as a member of the Panel unless it is listed
in Appendix B of approved ship brokers to this charter.

 

After
all the members of the Panel have been selected in accordance with the preceding
paragraph, the Panel shall determine the fair market price of the vessel, taking
into account that any sale would be made subject to this charter.  The market
price determined by the Panel (the “Price”) shall be the price determined by
the sole member of the Panel if there is only one member and shall be the
average of the two closest prices determined by members of the Panel if there
are three members.  The sole
member, or, the member of the Panel
selected by the other two members shall notify in writing the Owners and Charterer
of the Price (the “Price Notice”).  Owners
and Charterer shall each pay one-half of the fees and expenses of the members
of the Panel in performing their services under this Clause 84.  Such Price shall be considered the price of
the vessel, if Owners elect to proceed with the sale of the vessel after
receiving the Price Notice.  Owners shall
not be obligated to proceed with the sale of the vessel if it, in its sole
discretion, deems the Price to be inadequate. 
If the parent of Owners seeks to sell the stock of the Owners, then the Panel,
in addition to determining the Price of the vessel as aforesaid, shall
determine the fair market price of the assets of the Owners (other than the
vessel) and the fair market value of the liabilities of the Owners in
accordance with the foregoing methodology. 
The sum of the Price of the vessel in the Price Notice and the price of
the other assets of the Owners determined as aforesaid reduced by the value of
the liabilities of Owners determined as aforesaid shall be considered the price
for the stock (the “Stock Price”) and the Stock Price shall be set forth in the
Price Notice.

 

In
the event that the Owners elect to proceed with the sale of the vessel upon its
review of the Price Notice, Charterer shall have an irrevocable and
non-transferable option to effect Transfer to it of the vessel or stock in the Owners
at the Price or at the Stock Price, as the case may be, set forth in the Price
Notice and on materially the same terms as set forth in the Sale Notice.  Such option may be exercisable during the
period (the “Purchase Option Period”) commencing on receipt of the Price Notice and ending (a) if Tanker Management Ltd. Is the manager at
the time of the Price Notice, 30 days after Charterer’s receipt of the Price
Notice or (b) if Tanker Management Ltd. is not the
manager at the time of the Price Notice, 30 days after the later of (i) the
date (the “Inspection Date”), set forth in a notice from Owners to Charterer
that the vessel and the records of the vessel may be inspected by Charterer,
which notice shall be given after the Sale Notice and at least 5 business days
prior to the Inspection Date and (ii) Charterer’s receipt of the Price Notice.  In order to exercise its option, the Charterer
shall, within the Purchase Option Period, send an irrevocable written acceptance notice to the Owners
(the “Purchase Notice”).  The Charterer shall then be obligated to consummate
the

 

 

purchase of the vessel or stock at the Price or at the Stock
Price, as the case may be, set forth in the Price Notice and on materially the
same terms as set forth in the Sale Notice within thirty (30) days after
the Purchase Notice.  If Charterer does not exercise its option
within the Purchase Option Period or, if such option is exercised, Charterer
fails to consummate the purchase of the vessel or stock within the time period
set forth above, then, in addition to any other remedies available, the Owners may during the period set forth
in the next sentence (the “Sale Option Period”) sign a legally binding agreement for the Transfer of the vessel or
stock to a third party at a
price not less than the Price or the Stock
Price, as the case may be, set
forth in the Price Notice, minus up to 2.5% of the Price of the vessel, and
on materially the same terms as set forth in the Sale Notice.  The Sale
Option Period shall commence on the
earlier of (i) the date Charterer notifies Owners that Charterer will not
exercise its option and (ii) the expiration of the Purchase Option
Period (such earlier date referred to
as the “Start Date”) and end on the later of 90 days after (i) the Start Date and (ii) the date after the Start
Date when the vessel and the records of
the vessel are first made available
at a port for inspection at the request of potential third party purchasers of the vessel or stock.  If an
agreement for the Transfer of the
vessel or stock is not signed
during the Sale Option Period or
the Transfer of the vessel or stock
is not completed under such agreement, then Charterer’s right of first offer as
described in this Clause 84 shall begin again and a new Price determined in
accordance with the provisions of this Clause 84.  Any Transfer of the vessel or stock to a third party shall be subject to (x) Charterer’s
prior approval, which shall not be unreasonably withheld, and (y) Charterer’s
right to purchase at par any loan obtained by the third party purchaser of the
vessel to finance such purchase if such purchaser defaults under the credit
agreement for such loan or this charter provided the third party can obtain
such right from its lenders on, in the sole good faith opinion of the Owners,
commercially reasonable terms.  This
charter, including all options to extend it, shall continue in full force and
effect notwithstanding any Transfer of the vessel or stock in the ownership
company of the vessel.

 

If
the Owners fail to comply with the terms of this Clause, Charterer may, in its
absolute discretion, terminate this charter, whereupon Owners shall reimburse Charterer
for any hire paid in advance and not earned, the cost of bunker fuel on board
the vessel and for any amount for which the Owners are liable to Charterer
under the terms of this charter.
Charterer’s rights of termination shall, whether or not it is exercised, be
without prejudice to any other rights available to Charterer.

 

The managers
shall be responsible for the day to day technical operations of the vessel
however Owners always to be held responsible for the overall management of the
vessel.

 

If
Charterer is not satisfied with the performance of the manager, Charterer may
request a meeting within 7 business days with Owners and manager to discuss the
deficiencies in the management which deficiencies shall be presented in writing
by Charterer. If after thirty days, the management deficiencies are evidently
still unresolved in Charterer’s determination (which deficiencies and
determination will be delivered to Owners and manager in writing), then the
management company may be changed provided that the new management company
shall be selected by the Owners subject to the consent of the Charterer, such
consent not to be unreasonably withheld.

 

85)          Ownership

 

Owners
will not effect any mortgage, encumbrance or other lien on the vessel, other
than liens that are not material in amount and that arise in the ordinary
course of business or

 

 

by
operation of law, without the prior written consent of the Charterer, such
consent not to be unreasonably withheld. In the case of the initial financing by
Royal Bank of Scotland for the
purchase of the vessel (the “Initial Financing”), the Charterer hereby
consents.  In the case of any refinancing of the vessel,
Owners shall negotiate in good faith and use their best efforts to have the
refinancing mortgagee agree on, in the sole good faith opinion of the Owners,
commercially reasonable terms that are no less favorable to the Charterer than
the terms contained in the Initial Financing in terms of the mortgagee’s rights
to enforce its mortgage in the event and so long as the Charterer continues to
pay the charter hire under this charter.  If the Owners, after negotiating in good
faith and using their best efforts, are unable to obtain such provisions from
the refinancing mortgagee on, in the sole good faith opinion of the Owners,
commercially reasonable terms, Charterer
or its affiliates may seek such provisions on behalf of Owners and Owners shall
consider in good faith all refinancing proposals obtained by Charterer or its
affiliates which have, in the sole good faith opinion of Owners, commercially
reasonable terms.  In addition, Owners
shall use their best efforts to have the refinancing lenders agree on, in the sole good faith opinion of the
Owners, commercially reasonable terms,
that Charterer or its affiliates may purchase at par the loan made by such
lenders and related mortgage and other security interests if Owners breach any
provision of this charter, including this Clause 85, or if Owners or any of
their affiliates default under the loan agreement for such loan.

 

86)          Requirements
of Special Trades

 

A.    Charterer may blend cargo on board. If
original Bills of Lading are issued for one or more of the parcels which are
blended, upon return of all such Original Bills of Lading and at Charterers’
request, Owners will issue new Bills of Lading for the blended cargo. New Bills
of Lading can only be issued for the blend as a whole. Owners are hereby
indemnified against all claims for contamination or quality deterioration or
off specification whatsoever due to cargo blending on board.

 

B.    Extra insurance on freight and/or cargo,
if any, due to vessel’s age shall be for Owners’ account and Charterer shall
have the right to deduct such extra insurance cost from hire due Owners. Charterer
will provide supporting invoice for extra insurance cost deducted from charter
hire.

 

C.    Whenever requested by Charterer, Owners
shall arrange for war risk underwriters to advise Charterer via Owners about
actual net ‘additional premium’ then in effect. If requested by Charterer, Owners
shall arrange in advance for war risk underwriters to furnish such information
to Charterer via Owners 48 hours before vessel enters ‘additional premium’
zone, weekend and local holidays are excluded, at Charterers expense.

 

D.    Any ‘additional premiums’ due from Charterer
shall be documented by underwriters and Charterer shall pay only the net
premium charged to Owners -- i.e. gross premium less rebate, if
any.

 

E.    Charterer shall not be responsible for
any time lost due to officers and/or crew refusing to proceed to an actual war
zone, or for any time lost as a result of the vessel remaining in an “additional
premium” zone due to action by vessel’s officers and/or crew and/or breakdown
and/or accident to vessel or her equipment not caused by fault of the Charterer,
or as a result of an occurrence of a war risk.

 

 

F.     Pollution insurance. Owners warrant that
they will have in place the maximum cover for pollution offered by members of
the International Group of P&I Clubs (currently USD 1 billion) and that
this cover from underwriters approved by Charterer (such approval not to be
unreasonably withheld) will remain in place throughout the period of this
charter. Owners shall provide Charterers within five business days after the
fixture is concluded, written evidence from the vessel’s P&I club or
insurance broker of such pollution cover.

 

Any
additional premiums or surcharges payable by Owners in relation to the vessel
calling to United States of America ports to be for Charterers account.

 

G.    (Deleted)

 

H.    Owners warrant that vessel is fully
capable of carrying ‘Orimulsion’ and Owners/operators are fully aware of the
requirements for carrying this type of cargo. Normally, crude oil washing nor
inert gas system never to be utilized while Orimulsion is onboard.

 

I.     It is understood that the vessel shall
not be required to force ice but to follow ice breakers from time to time
always subject to master’s approval.

 

J.     (Deleted)

 

K.    Grades and comingling. Charterer shall be
at liberty to ship three grades of cargo. Grades and quantities of petroleum
products shall be defined by Charterer prior to each voyage. Segregated grades
shall be kept within vessels natural segregations. At the option of the Charterer,
loading of three or more grades of cargo in such a manner as to voluntarily mix
the cargo to obtain a new grade shall be carried out by the Owners pursuant to Charterers
requirements. Any such mixture or admixture shall be at Charterers risk and
expense and shall be considered to be one grade under the present agreement.
Any new bills of lading that are issued will only be for the blended cargo as a
whole.

 

L.    Vessel to have a working vapour recovery
system onboard.

 

M.   Owners warrant that it has a policy on drug and alcohol
abuse (‘‘Policy’’) applicable to the vessel which meets or exceeds the
standards of the OCIMF guidelines for the control of drugs and alcohol onboard
ship. Under the Policy, alcohol impairment shall be defined as a blood alcohol
content of 40 mg/100 ml or greater; the appropriate seafarers to be tested
shall be all the vessel’s officers and the drug/alcohol testing and screening
shall include unannounced testing in addition to routine medical examinations.
An objective of the Policy should be that the frequency of the unannounced
testing be adequate to act as an effective abuse deterrent, and that the
officers be tested at least once a year though a combined program of
unannounced testing and routine medical examinations. Owners further warrant
that the Policy will remain in effect during the term of this charter providing
that the terms are in conformity with the laws of the vessel’s flag state and
that the Owners shall exercise due diligence to ensure that the Policy is
complied with. It is understood that an actual impairment, shall not in and of
itself mean Owners has failed to exercise due diligence. Persons who test
positive, refuse to test, or are unfit for duty (impaired because of drug or
alcohol

 

 

abuse) shall be removed from the vessel and shall not be reassigned to
service on the vessel.

 

N.    (Deleted)

 

O.    (Deleted)

 

P.     Vessel shall be capable of full hot fresh
water wash, as well as hot sea water wash followed by fresh water rinse, with
all fresh water to be procured by Charterers over and above what vessel is
capable of producing with all time and expense for the cost of the water as
well as extra bunkers, and time and expense for all related operations to be
for Charterers account. Owners will make best efforts to produce fresh water
for Charterer’s purposes, however without guaranty.

 

Q.    Worldwide trading always within American Institute
Trade Warranties limits and any subsequent amendments thereof as permitted by U.S.
and/or Marshall Island authorities.

 

Charter
may order the vessel to Alaska, outside of American IWL, provided Owners’
consent thereto and that Charterers pay for any insurance premium required by
the vessel’s underwriters.  Charterers to
give adequate prior notice to Owners and Charterer shall provide and pay for
response plan and OSRO coverage for the vessel while in Alaskan waters.  All costs for any breach of BIWL as well as
all costs for trading to Alaska, and to comply with Charterer’s orders to be
for Charterer’s account including any insurance premium required by the vessel’s
underwriters.

 

Costs of
complying with USWC trading, with port, local and OPA 90 rules and regulations
to be for Charterers account in addition to filing spill response plans.

 

R.    Where the vessel is required to change
over to and from low sulphur fuel, the fuel consumption and any delays due to
flushing the fuel system is to be for Charterers account.

 

S.     (Deleted)

 

87)          Agency

 

Owners can appoint their own agents or have
the right to use and pay Charterer’s agents for Owners’ matters.

 

88)          Hull And Machinery Value

 

(Deleted)

 

89)          War
Risk Premium

 

Owners to be responsible only for the basic
annual contributions payable to obtain war risk cover. Charterer shall be
responsible for the full amount of any sums payable by way of additional
premiums to maintain that full cover as a result of the vessel proceding any
areas designated as additional war risk premium areas.

 

 

90)          Histories

 

Owners shall provide a work history to Charterer
prior to any change of the master, chief engineer and chief officer serving
onboard vessel. The history which shall show the extent of tanker experience in
rank. Similar histories shall be furnished for any new master, chief engineer
and chief officers prior to assignment to the vessel. After reviewing same, Charterers
have the right to reasonably reject any of the above in which case Owners will nominate
a substitute which shall be subject to Charterers approval as well.

 

91)          Personnel

 

Conversational
English language proficiency is required for the master and officers in charge
of cargo or bunker oil handling.

 

92)          Reduction
or Increase in Deadweight

 

(Deleted)

 

93)          Confidentiality

 

(Deleted)

 

94)          General
Average

 

A.    In addition to any other rights Charterer
may have, and if requested by Charterer, Owners will release one or more
cargoes to Charterer for transshipment from a port of refuge by and at the
expense of Charterer in exchange for a nonseparation of interest agreement,
general average bond, and a general average undertaking from cargo underwriters
in the customary forms. Charterer’s transshipment expenses, up to the general
average expenses saved, are to be treated like the general average expenses
saved, as if those expenses had actually been incurred and paid for by Charterer.
If a subcharter is involved and freight is at risk, subcharterer shall be
credited for the vessel’s daily manning, bunkers, insurance costs as well as
port expenses saved for any part of the voyage not required to be made by
reason of transshipment. Bills of lading for such transshipped cargoes are
deemed to be accomplished on completion of transfer to the transshipping
vessel, and port of refuge where transfer is made shall be treated as a
discharge port.

 

B.    Any amounts allowable in general average
for wages, provisions and stores shall be credited to Charterer insofar as such
amounts are in respect of a period when the vessel is on hire.

 

95)          Arbitration

 

(Deleted)

 

 

96)          Hydrogen Sulphide (H2S) Clause:

 

Owners shall comply with the requirements in
ISGOTT (as amended from time to time) concerning Hydrogen Sulphide and ensuring
that the Hydrogen Sulphide level is always below the threshold limit value
(TLV).

 

If on arrival at the loading terminal, the
loading authorities, inspectors or other authorised and qualified personnel
declare that the Hydrogen Sulphide levels exceed the TLV and request the vessel
to reduce the said level to within the TLV, provided that the
duration of the voyage between the last discharge port and such loading
terminal permits such reduction, then the
delay shall be considered off hire and any additional expenses incurred by
Charterer to be for Owners account.

 

97)          Yugoslavia
Clause

 

(Deleted)

 

98)          BIMCO ISPS Clause for Time
Charter Parties 2005

 

(A)           (i)   The
Owners shall comply with the requirements of the International Code for the
Security of Ships and of Port Facilities and the relevant amendments to Chapter
XI of SOLAS (ISPS Code) relating to the vessel and “the company” (as defined by
the ISPS Code). If trading to or from the United States or passing through
United States waters, the Owners shall also comply with the requirements of the
U.S. Maritime Transportation Security Act 2002 (MTSA) relating to the vessel
and the “owner” (as defined by the MTSA).

 

(ii)        Upon request the
Owners shall provide the Charterers with a copy of the relevant International
Ship Security Certificate (or the interim international ship security
certificate) and the full style contact details of the Company Security Officer
(CSO).

 

 (iii) Loss,
damages, expense or delay (excluding consequential loss, damages, expense or
delay) caused by failure on the part of the Owners or “the company”/”owner” to
comply with the requirements of the ISPS Code/MTSA or this Clause shall be for
the Owners’ account, except as otherwise provided in this charter party.

 

(B)           (i)   The
Charterers shall provide the Owners and the master with their full style
contact details and, upon request, any other information the Owners require to
comply with the ISPS Code/MTSA. Where sub-letting is permitted under the terms
of this charter party, the Charterers shall ensure that the contact details of
all sub-charterers are likewise provided to the Owners and the master.
Furthermore, the Charterers shall ensure that all sub-charter parties they
enter into during the period of this charter party contain the following
provision:

 

“The Charterers shall provide the Owners with their full style contact
details and, where sub-letting is permitted under the terms of the charter
party, shall ensure that the contact details of all sub-charterers are likewise
provided to the Owners”.

 

(ii)        Loss, damages, expense or
delay (excluding consequential loss, damages, expense or delay) caused by
failure on the part of the Charterers to comply with

 

 

this Clause shall be for the Charterers’ account, except as otherwise
provided in this charter party.

 

(C)                               Notwithstanding anything
else contained in this charter party all delay, costs or expenses whatsoever
arising out of or related to security regulations or measures required by the
port facility or any relevant authority in accordance with the ISPS Code/MTSA
including, but not limited to, security guards, launch services, vessel
escorts, security fees or taxes and inspections, shall be for the Charterers’
account, unless such costs or expenses result solely from the negligence of the
Owners, master or crew. All measures required by the Owners to comply with the
ship security plan shall be for the Owners’ account.

 

(D)                               If
either party makes any payment which is for the other party’s account according
to this Clause, the other party shall indemnify the paying party.

 

99)                              Period / Charter Hire

 

Owner and Charterer agree that
the initial charter period shall be the period commencing on October 17, 2005
and ending on April 16, 2012 (the “Initial Expiration Date”).  Until the Initial Expiration Date, the
Charterer shall pay to the Owner, charter hire (“Basic Hire”) monthly in
advance by the due date set forth in Clause 9. 
Each payment of Basic Hire (“Basic Hire Amount”) shall equal the basic
hire rate set forth in the initial charter rate table below that corresponds to
the time period for which payment is being made multiplied by the actual
number of days in the month for which the Basic Hire Amount is being
calculated. 

 

	
  INITIAL CHARTER RATE TABLE

  	
   

  
	
  CHARTER

  YEAR

  	
   

  	
  COMMENCING

  (0001 GMT)

  	
   

  	
  ENDING

  (2400 GMT)

  	
   

  	
  BASIC HIRE

  RATE

  	
   

  
	
  1

  	
   

  	
  October
  17, 2005

  	
   

  	
  October
  16, 2006

  	
   

  	
  USD
  37,200 per day

  	
   

  
	
  2

  	
   

  	
  October
  17, 2006

  	
   

  	
  October
  16, 2007

  	
   

  	
  USD
  37,400 per day

  	
   

  
	
  3

  	
   

  	
  October
  17, 2007

  	
   

  	
  October
  16, 2008

  	
   

  	
  USD
  37,500 per day

  	
   

  
	
  4

  	
   

  	
  October
  17, 2008

  	
   

  	
  October
  16, 2009

  	
   

  	
  USD
  37,600 per day

  	
   

  
	
  5

  	
   

  	
  October
  17, 2009

  	
   

  	
  October
  16, 2010

  	
   

  	
  USD
  37,800 per day

  	
   

  
	
  6

  	
   

  	
  October
  17, 2010

  	
   

  	
  October
  16, 2011

  	
   

  	
  USD
  38,100 per day

  	
   

  
	
  To
  6 1⁄2

  	
   

  	
  October
  17, 2011

  	
   

  	
  April
  16, 2012

  	
   

  	
  USD
  38,500 per day

  	
   

  

 

The Charterer may, at its option, extend the
charter on one or more occasions (provided that the charter is still in effect
at the time of extension) by giving written notice (the “Extension Notice”) to
the owner at least 90 days prior to the expiration date of the charter then in
effect.  The Extension Notice shall
specify the new expiration date of this charter, which shall be the first,
second or third anniversary of the existing expiration date; provided, however,
that in no event shall the expiration date be subsequent to April 16,
2020.  The Extension Notice shall also
specify the Basic Hire Amount for the selected extension period, which shall be
calculated in the same manner as the Basic Hire Amount for the initial charter
period, and shall, at the option of the Charterer, be equal to either:

 

 

A.            the one-,
two- or three-year time charter rate for VLCCs, which rate corresponds to the
selected extension period, established by the Association of Shipbrokers Agents
and Agents Tanker Broker Panel (the “Broker Panel”), plus five percent,
or

 

B.            the basic
hire rate for the corresponding time period(s) set forth in the option period
rate table below.

 

Upon receipt of the Extension Notice by the
owner, the charter shall be extended to the new expiration date on the same
terms and conditions (other than as expressly set forth herein).  If, at the time of the exercise of any
extension period, the Broker Panel is no longer quoting one-, two- or
three-year time charter rates, then a mutually acceptable replacement Broker
Panel shall be selected by the owner and Charterer.  The following broker panels shall be deemed
mutually acceptable by the owner and Charterer:

 

London Tanker Broker Panel

 

	
  OPTION PERIOD RATE TABLE

  	
   

  
	
  OPTION

  YEAR

  	
   

  	
  COMMENCING

  (0001 GMT)

  	
   

  	
  ENDING

  (2400 GMT)

  	
   

  	
  BASIC HIRE

  RATE

  	
   

  
	
  1

  	
   

  	
  April
  17, 2012

  	
   

  	
  October
  16, 2012

  	
   

  	
  USD
  38,500 per day

  	
   

  
	
   

  	
   

  	
  October
  17, 2012

  	
   

  	
  April
  16, 2013

  	
   

  	
  USD
  38,800 per day

  	
   

  
	
  2

  	
   

  	
  April
  17, 2013

  	
   

  	
  October
  16, 2013

  	
   

  	
  USD
  38,800 per day

  	
   

  
	
   

  	
   

  	
  October
  17, 2013

  	
   

  	
  April
  16, 2014

  	
   

  	
  USD
  39,200 per day

  	
   

  
	
  3

  	
   

  	
  April
  17, 2014

  	
   

  	
  October
  16, 2014

  	
   

  	
  USD
  39,200 per day

  	
   

  
	
   

  	
   

  	
  October
  17, 2014

  	
   

  	
  April
  16, 2015

  	
   

  	
  USD
  39,400 per day

  	
   

  
	
  4

  	
   

  	
  April
  17, 2015

  	
   

  	
  October
  16, 2015

  	
   

  	
  USD
  39,400 per day

  	
   

  
	
   

  	
   

  	
  October
  17, 2015

  	
   

  	
  April
  16, 2016

  	
   

  	
  USD
  39,600 per day

  	
   

  
	
  5

  	
   

  	
  April
  17, 2016

  	
   

  	
  October
  16, 2016

  	
   

  	
  USD
  39,600 per day

  	
   

  
	
   

  	
   

  	
  October
  17, 2016

  	
   

  	
  April
  16, 2017

  	
   

  	
  USD
  39,800 per day

  	
   

  
	
  6

  	
   

  	
  April
  17, 2017

  	
   

  	
  October
  16, 2017

  	
   

  	
  USD
  39,800 per day

  	
   

  
	
   

  	
   

  	
  October
  17, 2017

  	
   

  	
  April
  16, 2018

  	
   

  	
  USD
  40,000 per day

  	
   

  
	
  7

  	
   

  	
  April
  17, 2018

  	
   

  	
  October
  16, 2018

  	
   

  	
  USD
  40,000 per day

  	
   

  
	
   

  	
   

  	
  October
  17, 2018

  	
   

  	
  April
  16, 2019

  	
   

  	
  USD
  40,300 per day

  	
   

  
	
  8

  	
   

  	
  April
  17, 2019

  	
   

  	
  October
  16, 2019

  	
   

  	
  USD
  40,300 per day

  	
   

  
	
   

  	
   

  	
  October
  17, 2019

  	
   

  	
  April
  16, 2020

  	
   

  	
  USD
  40,500 per day

  	
   

  

 

ADDITIONAL HIRE

 

Charterer agrees that Additional Hire Payment Amount (as defined in the
Charter Framework Agreement, dated October [ ], 2005, by and among the Owners,
the

 

 

Charterer and the other parties thereto), if any, shall be calculated
and paid in accordance with such Charter Framework Agreement.

 

100)        AMS Clause

 

U.S. Customs Clearance — if
cargo is to be discharged in a U.S. port or territory subject to control by the
U.S. Customs and Border Protection (CBP), Charterers warrant that all necessary
details required by CBP for clearance of the cargo, inclusive of but not
limited to, shipper consignee and notify party full name, address and phone
number or telex number, will be included on each bill of lading or
alternatively supplied to Owners in writing a minimum of 24 hours prior to the
vessel’s arrival at the first designated U.S. port of discharge. For voyages
less than 24 hours in duration this information must be included on the bill of
lading or advised to Owners prior to the vessel departure from the loading
place or port.  Any delays, fines or
penalties incurred due to Charterers’ failure to comply with the above will be
for Charterers’ account.

 

Effective March 4, 2004, all
imported cargoes into the U.S. must be electronically reported via the Bureau
of U.S. Customs and Border Protection AMS system.  This requires the owner to have a Type 3
International Carriers Bond as well as a Standard Carriers Alpha Code (SCAC).  It is the responsibility of the owner to
ensure that his reporting requirement occurs 24 hours prior to the vessel’s
arrival at the first U.S. port. Should the international voyage be less than 24
hours in duration, the owner shall electronically file the manifest via the
automated manifest system at the time of the loading in the foreign port.  Owners and/or vessel master or their
designated agent will provide a copy of the electronically filed manifest to
the Charterers or their designated agent at the time of filing with CBP.

 

Owners warrant that it is aware
of the requirements of the U.S. Customs and Border Protection regulation issued
on December 5, 2003 under Federal Register Part II Department of Homeland
Security 19 CFP Parts 4, 103, et al. and will comply fully with these
requirements for entering U.S. ports. 
Any delays, fines or penalties incurred due to Owners failure to comply
with the above will be for Owners account.

 

The cost of filing to be for
Charterers account.  Charterers to be
responsible for any delay and/or fines related to late filing by their agents.

 

101)        House Flag/Charterers
Markings

 

At any time during the period of
this charter, Charterers shall have the privilege of flying their house flag,
to paint the funnel and bow crest in their house colors and to paint their
markings on ships sides and put/change the name of the vessel. Upon vessels
redelivery, Owners shall be obliged to rename the vessel and remove Charterers
markings on ships sides and repaint ships name and funnel. The cost of such
paintings and/or repaintings and/or name change to be for Charterers account
unless otherwise agreed with Owners. 
Upon Charterers request, crew to perform the work and payment to be
settled directly between Charterers and master.

 

In the event of a change in the
technical management of the vessel, Charterers shall have the option to change
the markings on the vessel and/or the name of the vessel at Owners time and
expense.

 

 

102)        Green Award Clause

 

Rebates in port dues, etc. obtained via the green award certificate to
be refunded to Charterers, provided that Charterers have paid for the green
award audit fees in full, or prorated for the period covered under this charter
party.

 

103)        Remeasure
Clause

 

Charterers
have the option to re-measure the vessel for the purpose of satisfying certain
port/terminal regulations. All cost and time to be for Charterers’ account. The
vessel is to be redelivered non-measured at Owners’ option if Charterers
exercised their option to re-measure in the first place.

 

104)        Exxon
Mooring

 

(Deleted)

 

105)        Storage
Clause

 

Charterers
shall have the option of requesting the vessel to remain idle, at a safe place,
at anchor/or drifting.

 

106)        Breach
Of Warranty Clause

 

(Deleted)

 

107)        Tracking
System Clause

 

It is agreed
that Charterers may from the time of fixing until completion of the charter
period employ an INMARSAT tracking system on the vessel. Such tracking system
works on data provided from the vessel’s onboard INMARSAT C system and can be
installed simply, either remotely, or on some older systems with minimal set up
input from the vessel. All registration/communication costs relating to this
tracking system will be for Charterers’ account. Charterers will advise when
the system is operative and confirm termination on completion of charter.

 

108)        Q88.Com
Clause

 

Owners to
provide, free of charge, a copy of the OCIMF VPQ in the required electronic
form so that the vessel can be included in Charterers’ subscription to the
website “q88.com”. Owners are furthermore required to update the system with
vessel approval status, certification and any other information as required on
a regular basis.

 

109)                       Changes/Improvements
Necessary for the Operation of the Vessel or Imposed by Legislation, Class or
Oil Company Vetting Requirements

 

A.            In the event
any improvement, structural change or the installation of new equipment is
imposed by compulsory legislation and/or Class rules and/or oil company vetting
requirements, Charterers shall have the right to require that the Owners effect
such improvement, changes or installations. The Charterers shall fully
reimburse the Owners for the total cost of all such improvements, structural
changes or installations up to USD 50,000 in any calendar year. To the extent
that the total cost of all such improvements, structural changes or
installations exceed USD 50,000 in any calendar year, the Charterers shall
reimburse the

 

 

Owners in an amount equal to 50 percent of the product of (i) the cost
of such improvements, structural changes or installations over USD 50,000 and
(ii) a fraction, the numerator of which shall be the number of whole months
remaining in the charter period at the time of completion of such improvement,
structural change or installation (the “Remaining Charter Period”) and the
denominator of which shall be the number of whole months remaining in the
depreciation period of the vessel (calculated as 25 years from the year the
vessel was built) at the time of completion of such improvement, structural
change or installation (such product, the “Reimbursement Payment”) and the
balance of the cost of such improvement, structural change or installation over
USD 50,000 shall be paid by the Owners. In the event the charter period is
extended for any reason, included but not limited to any extension under Clause
99, the Charterers shall pay additional reimbursement to the Owners in an
amount equal to the difference between the reimbursement calculated under the
preceding sentence (plus any additional reimbursement calculated for any other
extension period if applicable) and the amount that would have been due from
the Charterers had the Remaining Charter Period used to calculate the
Reimbursement Payment including the number of whole months in the extension
period as the numerator of the relevant fraction.

 

B.            In the event
any improvement, structural change or the installation of new equipment, not
falling under (A) above, is deemed necessary by the Charterers for the
continued operation of the vessel, Charterers shall have the right at their own
cost to effect such improvement, structural changes or installation, with the
Owners’ consent which shall not unreasonably be withheld.

 

C.            The Owners
shall be notified in writing in advance by the Charterers about any changes
and/or improvements as afore mentioned.

 

D.            Any change,
improvement or installation made pursuant to this Clause shall be the property
of Owners.

 

110)        Third
Party Clause

 

Except as may
be otherwise agreed in writing by the parties with any third party, a person
who is not party to this agreement/charter may not enforce, or otherwise have
the benefit of, any provision of this agreement/charter under the contract.

 

111)        Optional
Termination

 

In the event
the vessel is not delivered under this charter by [IPO closing], 2005 both the
Owners and the Charterers shall have the right to terminate this charter and
neither the Owners nor the Charterers shall be entitled to damages or to any
other compensation or reimbursement of expenses.

 

112)        Damages
Clause

 

In
subchartering to its customers, Charterer shall endeavor to avoid or limit any
liability to such customers for consequential damages. Owners shall not be
liable for any consequential damages or losses unless the Charterer’s
sub-charter provides for such consequential damages or losses to such
customers.

 

 

APPENDIX A

 

QUESTIONNAIRE 88 FOR [OVERSEAS ANN]

 

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

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

 

	
   

  	
   

  	
   

  	
   

  	
  HVPQ Ref

  	
   

  
	
  GENERAL INFORMATION

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date
  Updated:

  	
   

  	
  Jul
  20, 2005

  	
   

  	
   

  	
   

  
	
  Vessel’s
  name:

  	
   

  	
  Overseas
  Ann

  	
   

  	
  1.2

  	
   

  
	
  IMO
  number:

  	
   

  	
  9217979

  	
   

  	
  1.3

  	
   

  
	
  Vessel’s
  previous name(s):

  	
   

  	
  Not
  Applicable

  	
   

  	
  1.4-1.7

  	
   

  
	
  Flag:

  	
   

  	
  Marshall
  Island

  	
   

  	
  1.8

  	
   

  
	
  Port
  of Registry:

  	
   

  	
  Majuro

  	
   

  	
  1.9

  	
   

  
	
  Call
  sign:

  	
   

  	
  V7CV6

  	
   

  	
  1.11

  	
   

  
	
  Inmarsat
  phone number:

  	
   

  	
  Sat
  B 353844610

  	
   

  	
  1.12

  	
   

  
	
  Fax
  number:

  	
   

  	
  Sat
  B 353844520

  	
   

  	
  1.13

  	
   

  
	
  Email
  address:

  	
   

  	
  master.ovann@ships.osg.com

  	
   

  	
  1.16

  	
   

  
	
  Type
  of vessel:

  	
   

  	
  Oil
  Tanker

  	
   

  	
  1.17

  	
   

  
	
  Type
  of hull:

  	
   

  	
  Double
  Hull

  	
   

  	
  1.19

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OWNERSHIP & OPERATION

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registered
  owner - Full Style:

  	
   

  	
  1320
  Tanker Corporation 

  c/o OSG Ship Management (UK) Ltd 

  +44 191 218 0100 

  osguk@osg.com

  	
   

  	
  1.20

  	
   

  
	
  Technical
  operator - Full Style:

  	
   

  	
  OSG
  Ship Management (UK) Ltd. 

  Quorum 4, Balliol Business Park East, Benton Lane, Newcastle-upon-Tyne, NE12
  8EZ, United kingdom, 

  +44 191 218 0100 

  osguk@osg.com

  	
   

  	
  1.22

  	
   

  
	
  Commercial
  operator - Full Style:

  	
   

  	
  Tankers
  International LLC 

  c/o Tankers (UK) Agencies Ltd, 3rd Floor, Moreau House, 116 Brompton Road,
  London SW3 1JJ, United Kingdom 

  +44 207 8704700 

  operations@tankers.uk.com

  	
   

  	
  1.25

  	
   

  
	
  Disponent
  owner / Bareboat charterer - Full Style:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number
  of vessels in disponent owner’s fleet:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BUILDER

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Where
  Built :

  	
   

  	
  Hyundai
  Heavy Industries

  	
   

  	
  1.26

  	
   

  
	
  Date
  Delivered:

  	
   

  	
  Aug
  17, 2001

  	
   

  	
  1.31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CLASSIFICATION

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vessel’s
  classification society:

  	
   

  	
  Lloyds
  Register

  	
   

  	
  1.34

  	
   

  

 

 

	
  Class
  notation:

  	
   

  	
  +
  100A1 Double Hull Oil Tanker,ESP,Shipright (SDA,FDA,CM), *IWS,SPM,L1, , +LMC,
  UMS, IGS

  	
   

  	
  1.35

  	
   

  
	
  If
  Classification society changed, name of previous society?

  	
   

  	
  N/A

  	
   

  	
  1.36

  	
   

  
	
  If
  Classification society changed, date of change?

  	
   

  	
  Not
  Applicable

  	
   

  	
  1.37

  	
   

  
	
  Last
  dry-dock:

  	
   

  	
  Not
  Applicable

  	
   

  	
  1.38

  	
   

  
	
  Last
  special survey:

  	
   

  	
  Not
  Applicable

  	
   

  	
  1.41

  	
   

  
	
  Latest
  CAP Rating (if applicable)

  	
   

  	
  0

  	
   

  	
  1.44

  	
   

  
	
  Last
  annual survey:

  	
   

  	
  Jul
  12, 2004

  	
   

  	
  1.45

  	
   

  
	
  Does
  the vessel have a statement of compliance issued under the provisions of the
  Condition Assessment Scheme (CAS)?

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DIMENSIONS

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LOA
  (Length Over All):

  	
   

  	
  334.59
  Metres

  	
   

  	
  1.49

  	
   

  
	
  Extreme
  breadth:

  	
   

  	
  58.05
  Metres

  	
   

  	
  1.51

  	
   

  
	
  KTM
  (Keel to Masthead):

  	
   

  	
  62.703
  Metres

  	
   

  	
  1.54

  	
   

  
	
  BCM
  (Bow to Center Manifold):

  	
   

  	
  168.36
  Metres

  	
   

  	
  1.57.1

  	
   

  
	
  Lightship
  parallel body length:

  	
   

  	
  112.5
  Metres

  	
   

  	
  1.57.3

  	
   

  
	
  Normal
  ballast parallel body length:

  	
   

  	
  143
  Metres

  	
   

  	
  1.57.6

  	
   

  
	
  Parallel
  body length at Summer DWT:

  	
   

  	
  164.4
  Metres

  	
   

  	
  1.57.9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TONNAGES

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net
  Tonnage:

  	
   

  	
  109555
  Tonnes

  	
   

  	
  1.59

  	
   

  
	
  Gross
  Tonnage:

  	
   

  	
  157883
  Tonnes

  	
   

  	
  1.60

  	
   

  
	
  Suez
  Net Tonnage:

  	
   

  	
  169993.47
  Tonnes

  	
   

  	
  1.61

  	
   

  
	
  Panama
  Net Tonnage:

  	
   

  	
  Tonnes

  	
   

  	
  1.62

  	
   

  

 

	
  LOADLINE INFORMATION

  	
   

  	
  Freeboard

  	
   

  	
  Draft

  	
   

  	
  Deadweight

  	
   

  	
  Displacement

  	
   

  	
   

  	
   

  
	
  Summer:

  	
   

  	
  8323 Metres

  	
   

  	
  22.723 Metres

  	
   

  	
  309326.9 Tonnes

  	
   

  	
  352989.7 Tonnes

  	
   

  	
  1.63

  	
   

  
	
  Winter:

  	
   

  	
  8796 Metres

  	
   

  	
  22.25 Metres

  	
   

  	
  301328.2 Tonnes

  	
   

  	
  344991 Tonnes

  	
   

  	
  1.64

  	
   

  
	
  Tropical:

  	
   

  	
  7850 Metres

  	
   

  	
  23.196 Metres

  	
   

  	
  317365.2 Tonnes

  	
   

  	
  361028 Tonnes

  	
   

  	
  1.65

  	
   

  
	
  Lightship:

  	
   

  	
  27666 Metres

  	
   

  	
  3.38 Metres

  	
   

  	
  0 Tonnes

  	
   

  	
  43663 Tonnes

  	
   

  	
  1.66

  	
   

  
	
  Normal
  Ballast Condition:

  	
   

  	
  20786 Metres

  	
   

  	
  10.26 Metres

  	
   

  	
  104754 Tonnes

  	
   

  	
  148417 Tonnes

  	
   

  	
  1.67

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TPC
  on summer draft:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  169.53
  Tonnes

  	
   

  	
   

  	
   

  	
  1.70

  	
   

  
	
  Does
  vessel have Multiple SDWT?

  	
   

  	
   

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
  1.72

  	
   

  
	
  If
  yes what is the maximum assigned Deadweight?

  	
   

  	
  309326.9
  Tonnes

  	
   

  	
   

  	
   

  	
  1.73

  	
   

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

  	
   

  	
  52.443
  Metres

  	
   

  	
   

  	
   

  	
  1.74

  	
   

  

 

 

	
  RECENT OPERATIONAL HISTORY

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Has
  vessel been involved in any collision, grounding or pollution incident the
  past 12 months, full description:

  	
   

  	
  Pollution:
  No 

  Grounding: No 

  Collision: No

  	
   

  	
  1.77-1.79

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CERTIFICATION

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Owners
  warrant following certificates to be valid throughout the Charter Party
  period:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SOLAS
  Safety Equipment:

  	
   

  	
  Aug
  16, 2006

  	
   

  	
  2.2

  	
   

  
	
  SOLAS
  Safety Radio:

  	
   

  	
  Aug
  16, 2006

  	
   

  	
  2.3

  	
   

  
	
  SOLAS
  Safety Construction:

  	
   

  	
  Aug
  16, 2006

  	
   

  	
  2.4

  	
   

  
	
  Load
  line:

  	
   

  	
  Aug
  16, 2006

  	
   

  	
  2.5

  	
   

  
	
  IOPPC:

  	
   

  	
  Aug
  16, 2006

  	
   

  	
  2.6

  	
   

  
	
  Safety
  Management (ISM):

  	
   

  	
  Feb
  12, 2007

  	
   

  	
  2.8

  	
   

  
	
  USCG
  COC:

  	
   

  	
  Feb
  07, 2007

  	
   

  	
  2.11

  	
   

  
	
  CLC:

  	
   

  	
   

  	
   

  	
  2.13

  	
   

  
	
  US
  COFR:

  	
   

  	
   

  	
   

  	
  2.15

  	
   

  
	
  Certificate
  of Fitness (Gas/Chemicals):

  	
   

  	
  Gas:

  Chem:

  	
   

  	
  2.16 & 2.17

  	
   

  
	
  Certificate
  of Class:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ISPS
  ISSC:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DOCUMENTATION

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Does
  the vessel have the following documents on board?

  	
   

  	
   

  	
   

  	
   

  	
   

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

  	
   

  	
  Yes

  	
   

  	
  2.28

  	
   

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

  	
   

  	
  Yes

  	
   

  	
  2.31

  	
   

  
	
  Is
  the vessel entered with ITOPF?

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CREW MANAGEMENT

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nationality
  of Master

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nationality
  of Officers:

  	
   

  	
  BRITISH
  2, IRISH 1, CROATIAN 6,

  	
   

  	
  3.1

  	
   

  
	
  Nationality
  of Crew:

  	
   

  	
  CROATIAN
  14

  	
   

  	
  3.2

  	
   

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

  	
   

  	
  Officers:
  

  Crew:

  	
   

  	
  3.1 & 3.2

  	
   

  
	
  What
  is the common working language onboard?

  	
   

  	
  ENGLISH

  	
   

  	
  3.1

  	
   

  
	
  Do
  key officers understand English?

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  In
  case of Flag Of Convenience (FOC), is the ITF Special Agreement on board?

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  STRUCTURAL CONDITION

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Are
  cargo tanks coated?

  	
   

  	
  Yes

  	
   

  	
  7.1

  	
   

  
	
  If
  Yes, specify type of coating:

  	
   

  	
  BISCON
  HB 200

  	
   

  	
  7.1.1

  	
   

  
	
  If
  cargo tanks are coated, specify to what extent:

  	
   

  	
  AS
  ABOVE

  	
   

  	
  7.1.3

  	
   

  
	
  Are
  slop tanks coated?

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  If
  slop tanks are coated, specify to what extent:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CARGO & BALLAST SYSTEMS

  	
   

  	
   

  	
   

  	
   

  	
   

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

  	
   

  	
  No

  	
   

  	
  8.2

  	
   

  
	
  Groups
  / Tank Capacities

  	
   

  	
  1: Cu. Metres – , 2: Cu. Metres - 3: Cu.
  Metres - 4: Cu. Metres - 5: Cu. Metres - 6: Cu. Metres - 7: Cu. Metres - 8: Cu. Metres - 9:
  Cu. Metres -

  	
   

  	
  8.3

  	
   

  
	
  Total
  cubic capacity 98% ex slop tank:

  	
   

  	
  336246
  Cu. Metres

  	
   

  	
  8.4 & 8.6

  	
   

  
	
  Slop
  tank(s) capacity 98%:

  	
   

  	
  6707
  Cu. Metres

  	
   

  	
  8.5 & 8.7

  	
   

  
	
  SBT
  or CBT?

  	
   

  	
  SBT

  	
   

  	
   

  	
   

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

  	
   

  	
  33.36%

  	
   

  	
  8.14.2

  	
   

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

  	
   

  	
  Yes

  	
   

  	
  8.14.3

  	
   

  
	
  Number
  of natural segregations with double valve:

  	
   

  	
  3

  	
   

  	
  8.15

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CARGO PUMPS

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number
  / Capacity / Type:

  	
   

  	
  3
  x 5000 Cu. Metres/Hour (Centrifugal)

  	
   

  	
  8.18-8.25

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GAUGING AND SAMPLING

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Can
  tank innage/ullage be read from the CCR?

  	
   

  	
  Yes

  	
   

  	
  8.48

  	
   

  
	
  Can
  vessel operate under closed conditions in accordance with ISGOTT 7.6.3?

  	
   

  	
  Yes

  	
   

  	
  8.51

  	
   

  
	
  Type
  of tank gauging system (radar / floating / other)

  	
   

  	
  Radar

  	
   

  	
  8.51.1

  	
   

  
	
  Are
  high level alarms fitted and operational in cargo tanks?

  	
   

  	
  Yes

  	
   

  	
  8.54

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VAPOUR EMISSION CONTROL AND VENTING

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Is
  a vapour return system fitted?

  	
   

  	
  Yes

  	
   

  	
  8.65

  	
   

  
	
  State
  what type of venting system is fitted:

  	
   

  	
  Common
  , Single Vent riser

  	
   

  	
  8.67

  	
   

  
	
  Max
  loading rate per midships connection for homogenous cargo?

  	
   

  	
  Cu.
  Metres/Hour

  	
   

  	
  8.79

  	
   

  

 

 

	
  CARGO MANIFOLDS

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Does
  vessel comply with the latest edition of the OCIMF ‘Recommendations for Oil
  Tanker Manifolds and Associated Equipment’?

  	
   

  	
  Yes

  	
   

  	
  8.80

  	
   

  
	
  What
  is the number of cargo connections per side?

  	
   

  	
  3

  	
   

  	
  8.83

  	
   

  
	
  What
  is the size of cargo connections?

  	
   

  	
  26
  Millimetres

  	
   

  	
  8.84

  	
   

  
	
  What
  is the material of the manifold?

  	
   

  	
  Cast
  Steel

  	
   

  	
  8.86

  	
   

  
	
  Distance
  between cargo manifold centres:

  	
   

  	
  3000
  Millimetres

  	
   

  	
  8.93

  	
   

  
	
  Distance
  ships rail to manifold:

  	
   

  	
  4500
  Millimetres

  	
   

  	
  8.95

  	
   

  
	
  Distance
  main deck to centre of manifold:

  	
   

  	
  2100
  Millimetres

  	
   

  	
  8.97

  	
   

  
	
  Height
  of manifold connections above the waterline at loaded (Summer Deadweight)
  condition?

  	
   

  	
  10.423
  Metres

  	
   

  	
  8.101

  	
   

  
	
  Height
  of manifold connections above the waterline in normal ballast?

  	
   

  	
  22.886
  Metres

  	
   

  	
  8.102

  	
   

  
	
  Is
  vessel fitted with a stern manifold?

  	
   

  	
  No

  	
   

  	
  8.104

  	
   

  
	
  Number
  / size reducers:

  	
   

  	
  6
  x 660/500 Millimetres 

  3 x 660/400 Millimetres 

  3 x 660/300 Millimetres 

  3 x 400/250 Millimetres

  	
   

  	
  8.106-8.110

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CARGO HEATING

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type
  of cargo heating system?

  	
   

  	
   

  	
   

  	
  8.120

  	
   

  
	
  Material
  of heating system?

  	
   

  	
   

  	
   

  	
  8.128

  	
   

  
	
  Max
  load temp:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Max
  temp maintain:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IGS & COW

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Is
  an Inert Gas System (IGS) fitted?

  	
   

  	
  Yes

  	
   

  	
  9.1

  	
   

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

  	
   

  	
  Flue
  Gas

  	
   

  	
  9.3

  	
   

  
	
  Is
  a Crude Oil Washing (COW) installation fitted?

  	
   

  	
  Yes

  	
   

  	
  9.17

  	
   

  

 

 

	
  MOORING ARRANGEMENTS

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number
  / length / diameter of wires:

  	
   

  	
  Forecastle:
  4 / 300 / 42 

  Fwd main deck: 6 / 300 / 42 

  Aft main deck: 4 / 300 / 42 

  Poop: 6 / 300 / 42

  	
   

  	
  10.2-5

  	
   

  
	
  Breaking
  strength of wires:

  	
   

  	
  Forecastle:
  114 

  Fwd main deck: 114 

  Aft main deck: 114 

  Poop: 114

  	
   

  	
  10.2-5

  	
   

  
	
  Number
  / length / diameter of ropes:

  	
   

  	
  None

  	
   

  	
  10.11-18

  	
   

  
	
  Breaking
  strength of ropes:

  	
   

  	
  None

  	
   

  	
  10.11-18

  	
   

  
	
  Number
  and brake holding power of winches:

  	
   

  	
  Forecastle:
  2 / 72 

  Fwd main deck: 3 / 72 

  Aft main deck: 2 / 72 

  Poop: 3 / 72

  	
   

  	
  10.22-10.25

  	
   

  
	
  How
  many closed chocks and/or fairleads of enclosed type are fitted on:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Focsle:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Main deck fwd:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Main deck aft:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Poop:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SINGLE POINT MOORING (SPM) EQUIPMENT

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fairlead
  size:

  	
   

  	
  650
  mm x 450mm

  	
   

  	
  10.48

  	
   

  
	
  Does
  vessel comply with the latest edition of OCIMF ‘Recommendations for Equipment
  Employed in the Mooring of Vessels at Single Point Moorings (SPM)’?

  	
   

  	
  Yes

  	
   

  	
  10.60

  	
   

  
	
  Is
  vessel fitted with chain stopper(s)?

  	
   

  	
  Yes

  	
   

  	
  10.61

  	
   

  
	
  Number:

  	
   

  	
  2

  	
   

  	
  10.61.1

  	
   

  
	
  Type:

  	
   

  	
  Tongue

  	
   

  	
  10.61.2

  	
   

  
	
  SWL:

  	
   

  	
  200
  Tonnes

  	
   

  	
  10.61.3

  	
   

  
	
  Max
  diameter chain size:

  	
   

  	
  76
  Millimetres

  	
   

  	
  10.62

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIFTING EQUIPMENT

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Derrick(s)
  - Number / SWL:

  	
   

  	
  0
  / Tonnes

  	
   

  	
  10.75

  	
   

  
	
  Crane(s)
  - Number / SWL:

  	
   

  	
  2
  / 20 Tonnes

  	
   

  	
  10.76

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ENGINE ROOM

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  What
  type of fuel is used for main propulsion?

  	
   

  	
  I.F.O.

  	
   

  	
  12.5

  	
   

  
	
  What
  type of fuel is used in the generating plant?

  	
   

  	
  IFO

  	
   

  	
  12.14

  	
   

  

 

 

	
  MISCELLANOUS

  	
   

  	
   

  
	
  P
  & I Club name:

  	
   

  	
   

  
	
  Last
  three cargoes (Last / 2nd Last / 3rd Last):

  	
   

  	
  Contact
  owner for details.

  
	
  Last
  three charterers (Last / 2nd Last / 3rd Last):

  	
   

  	
  Contact
  owner for details.

  
	
  Last
  three voyages (Last / 2nd Last / 3rd Last):

  	
   

  	
  Contact
  owner for details.

  
	
  Date
  of last SIRE Inspection:

  	
   

  	
   

  
	
  Date
  of last CDI Inspection:

  	
   

  	
   

  
	
  Current
  Oil Major Company Acceptances (TBOOK):

  	
   

  	
   

  
	
  Date
  and place of last Port State Control:

  	
   

  	
  /

  
	
  Any
  outstanding deficiencies as reported by any Port State Control?

  	
   

  	
   

  
	
  If
  yes, provide details:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FOR USA CALLS ONLY

  	
   

  	
   

  
	
  Qualified
  individual (QI) - Full Style:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Oil
  Spill Response Organization (OSRO) -Full Style:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Has
  owner, manager, or operator signed the Sea Carrier Initiative agreement with
  US customs concerning drug smuggling?

  	
   

  	
   

  

 

	
  Revised: July 2004 (INTERTANKO.com / Q88.com)

  

 

 

APPENDIX B

 

APPROVED SHIP BROKERS

 

P.F. Bassoe A/S (Norway)

Platou (Norway)

Fearnleys (Norway)

H. Clarkson (U.K.)

E.A. Gibson (U.K.)

Simpson Spence & Young Ltd.

Jacq. Pierot Jr. & Sons, Inc. (USA)

Compass Maritime Services LLC

Galbraith’s LimitedExhibit 10.4.1

 

	
  1.

  	
  Date
  of Agreement  

  October      , 2005

  	
   

  	
  SHIP MANAGEMENT AGREEMENT

  Part I

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Owners (name, place of
  registered office and law of registry) (CI. 1)

  	
   

  	
  3.

  	
  Managers (name, place of
  registered office and law of registry) (CI. 1) 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name

  	
   

  	
   

  	
  Name 

  
	
   

  	
  Ann Tanker Corporation

  	
   

  	
   

  	
  Tanker Management Ltd. 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Place of registered office
  

  	
   

  	
   

  	
  Place of registered office

  
	
   

  	
  Majuro, Marshall Islands

  	
   

  	
   

  	
  England

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Law of registry

  	
   

  	
   

  	
  Law of registry 

  
	
   

  	
  Marshall Islands

  	
   

  	
   

  	
  England

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Day and year of
  commencement of Agreement (CI. 2) 
  

  See Clause 2

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Crew management (state
  “yes” or “no” as agreed)

  (CI. 3.1)

  Yes

  	
   

  	
  6.

  	
  Technical Management (state
  “yes” or “no” as agreed)

  (CI. 3.2)  

  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Commercial Management
  (state “yes” or “no” as agreed)

  (CI. 3.3)  

  No.

  	
   

  	
  8.

  	
  Insurance Arrangements
  (state “yes” or “no” as agreed)

  (CI. 3.4)  

  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  Accounting Services (state
  “yes” or “no” as agreed)

  (CI. 3.5)

  Yes, as per Clause 3.5 only

  	
   

  	
  10.

  	
  Sale or purchase of the
  Vessel (state “yes” or “no” as agreed) (CI. 3.6)  

  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  Provisions (state “yes” or
  “no” as agreed) (CI. 3.7)  

  Yes

  	
   

  	
  12.

  	
  Bunkering (state “yes” or
  “no” as agreed) (CI. 3.8)  

  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  Chartering Services Period
  (only to be filled in if “yes” stated in Box 7) (CI. 3.3(i))  

  N/A

  	
   

  	
  14.

  	
  Owners’ Insurance  

  See Clause 6.3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  Annual Management Fee  

  See Clause 8.1

  	
   

  	
  16.

  	
  Severance Costs (state
  maximum amount) (CI. 8.4(ii))  

  None

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  Day and year of
  termination of Agreement (CI. 17) 
  

  See Clause 17

  	
   

  	
  18.

  	
  Law and Arbitration  

  See Clause 19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
  Notices (state postal and
  cable address, telex and telefax number for serving notice and communication to
  the Owners (CI. 20)  

  Ann Tanker Corporation

  26 New Street

  St. Helier, Jersey JE 23R4

  Channel Islands

  	
   

  	
  20.

  	
  Notices (state postal and
  cable address, telex and telefax number for serving notice and communication to
  the Managers) (CI. 20)  

  Tanker Management Ltd.

  Quorum 4, Balliol Business Park East, Benton Lane,

  Newcastle upon Tyne NE 12 8EZ England

  

 

It is mutually agreed between the party
stated in Box 2 and the party stated in Box 3 that this Agreement
consisting of PART I and PART II and Schedules 1, 2 and
3 attached hereto, shall be performed subject to the conditions contained
herein.  In the event of a conflict of
conditions, the provisions of PART I shall prevail over those of PART II
and Schedules 1, 2 and 3 to the extent of such conflict but no further.

 

	
  Signature(s) (Owners)

  	
   

  	
   

  	
  Signature(s) (Managers)

  

 

 

PART II

Ship Management Agreement

 

1.                   Definitions

 

In this Agreement save where the context
otherwise requires, the following words and expressions shall have the meanings
hereby assigned to them.

 

“Owners” means the
party identified in Box 2.

 

“Managers” means the
party identified in Box 3.

 

“Vessel” means the
Marshall Islands flag vessel M/T Overseas Ann, IMO Number 9217979, built in August 2001
at Hyundai Heavy Industries Co., Ltd. in Ulsan, South Korea.

 

“Charter” means the time charter between the Owners and DHT Ann VLCC Corp.
dated October      , 2005 relating to the Vessel.

 

“Crew” means the
Master, officers and ratings of the Vessel.

 

“Crew
Support Costs” means all expenses of a general nature
which are not particularly referable to any individual vessel for the time
being managed by the Managers and which are incurred by the Managers for the
purpose of providing an efficient and economic management service and, without
prejudice to the generality of the foregoing, shall include the cost of crew
standby pay, training schemes for officers and ratings, cadet training schemes,
sick pay, study pay, recruitment and interviews.

 

 “Crew Insurances” means
insurances against crew risks which shall include but not be limited to death,
sickness, repatriation, injury, shipwreck unemployment indemnity and loss of personal
effects.

 

“Management
Services” means the services specified in
subclauses 3.1 to 3.8 as indicated affirmatively in Boxes 5, 6, 8, 9 and 11.

 

“ISM Code” means the
International Management Code for the Safe Operation of Ships and for Pollution
Prevention as adopted by the International Maritime Organization (IMO) by
resolution A.741(18) or any subsequent amendment thereto.

 

“STCW 95” means the
International Convention on Standards of Training, Certification and
Watchkeeping for Seafarers, 1978, as amended in 1995 or any subsequent
amendment thereto.

 

2.                   Appointment
of Managers

 

With effect from the day and year of delivery
of the Vessel to the Owners pursuant to a Memorandum of Agreement between
Owners and 1320 Tanker Corporation dated September 20, 2005 and continuing
unless and until terminated as provided herein, the Owners hereby appoint the
Managers and the Managers hereby agree to act as the Managers of the Vessel.

 

3.                   Basis of
Agreement

 

Subject to the terms and conditions herein
provided, during the period of this Agreement, the Managers shall carry out
Management Services in respect of the Vessel as agents for and on behalf of the
Owners.  The Managers shall have
authority to take such actions as they may from time to time in their absolute discretion
consider to be necessary to enable them to perform this Agreement in accordance
with sound ship management practice.

 

3.1            Crew Management

 

(only applicable if agreed
according to Box 5)

 

The Managers shall provide suitably qualified
Crew for the Vessel as required by the Owners in accordance with the STCW 95
requirements, provision of which includes but is not limited to the following
functions:

 

(i)                                                                  selecting
and engaging in Vessel’s Crew, including payroll arrangements, pension
administration, and insurances for the Crew;

 

(ii)                                                               ensuring
that the applicable requirements of the law of the flag of the Vessel are
satisfied in respect of manning levels, rank qualification and certification of
the Crew and employment regulations including Crew’s tax, social insurance,
discipline and other requirements;

 

(iii)                                                            ensuring
that all members of the Crew have passed a medical examination with a qualified
doctor certifying that they are fit for the duties for which they are engaged
and are in possession of valid medical certificates issued in accordance with
appropriate flag State requirements.  In
the absence of applicable flag State requirements the medical certificate shall
be dated not more than three months prior to the respective Crew members
leaving their country of domicile and maintained for the duration of their
service on board the Vessel;

 

(iv)                                                           ensuring
that the Crew shall have a command of the English language of a sufficient
standard to enable them to perform their duties safely;

 

(v)                                                              arranging
transportation of the Crew, including repatriation;

 

(vi)                                                           training of
the Crew and supervising their efficiency;

 

(vii)                                                        conducting
union negotiations;

 

(viii)                                                     operating
the Managers’ drug and alcohol policy unless otherwise agreed;

 

(ix)                                                             If the
Owners complain of the conduct of any of the Crew, the Managers shall
immediately investigate the complaint. 
If the complaint proves to be well founded, Managers shall, without
delay, make a change in the appointments and the Managers shall in any event
communicate the result of their investigation to the Owners as soon as
possible.

 

3.2            Technical Management

 

(only applicable if agreed according to Box 6)

 

The Managers shall provide technical
management which includes, but is not limited to, the following functions:

 

(i)                                                                  provision of
competent personnel to supervise the maintenance and general efficiency of the
Vessel;

 

(ii)                                                               arrangement
and supervision of dry dockings, repairs, alterations and the upkeep of the
Vessel necessary to ensure that the Vessel will comply with the requirements of
the Charter, the law of the flag of the Vessel and of the places where she
trades, and all requirements and recommendations of the classification society;

 

(iii)                                                            arrangement
of the supply of necessary stores, spares and lubricating oil and greases.  The level and time of the supply of such
items shall be based on that which a prudent owner of a vessel of the age and
characteristics of the Vessel (including but not limited its operating history,
planned maintenance and known wear and tear) would arrange so as to minimize
off-hire time and to undertake such maintenance as may safely be carried out at
sea by the crew;

 

(iv)                                                           appointment
of surveyors and technical consultants as the Managers may consider from time
to time to be necessary;

 

(v)                                                              development,
implementation and maintenance of a Safety Management System (SMS) in
accordance with the ISM Code (see subclause 4.2);

 

 

(vi)                                                           ensuring
that the Vessel receives at least two visits per year from one of the Managers’
technical superintendents; and.

 

(vii)                                                        arrangement
of oil company vetting so as to comply with the Owner’s obligations under the
Charter.

 

3.3            Commercial Management

 

N/A

 

3.4            Insurance Arrangements

 

(only applicable if agreed
according to Box 8)

 

The Managers shall arrange insurances in
accordance with Clause 6 subject to the following:

 

Throughout the term of this Agreement, the
Managers shall consult with the Owners prior to the time of each renewal of the
Owners’ Insurances (as defined in Clause 6.1) and, unless the Owners obtain
insurance coverage from other parties as set forth below in this Clause 3.4,
the Managers shall secure coverage for the Owners’ Insurances for the Vessel at
the Owners’ expense through the Managers’ insurance program on coverage amounts
(except for hull and machinery insurance in which is subject to Clause 6.6 of
this Agreement), terms and conditions that the Managers shall determine.  The Managers shall obtain insurance coverage
for the Vessel through the Managers’ insurance program that is in accordance
with the best practice of prudent owners of vessels of a similar type to the
Vessel, with first class insurance companies, underwriters or
associations.  If the Owners can
demonstrate that the insurance coverage provided by the Managers is not in
accordance with the preceding sentence and the Managers do not make the
amendments necessary for such coverage to meet such standards, the Owners shall
have the right to place the Owners’ Insurances through third parties, provided
that (x) the terms and conditions of the Owners’ Insurances proposed by the
Owners to be placed with third parties do not, in the reasonable opinion of the
Managers, impose any additional cost or liability on the Managers under the
Charter and (y) prior to placing the insurance through third parties, Owners
shall agree to indemnify Managers for any additional cost or liability on the
Managers under the Charter resulting from any such insurance placement .  If the Owners place any component policy of
the Owners’ Insurances through third parties in accordance with the preceding
sentence, the Managers shall have the right to terminate any other policy
placed by it on behalf of the Owners, and (i) any unearned premium
advanced by the Owners shall be refunded to the Owners and (ii) any
premium due and any liability for calls for the period of coverage placed by
the Managers shall remain for the account of the Owners until fully discharged.

 

The Managers shall arrange for the Owners’
Insurances to be in place as of the effective date of this Agreement and shall
maintain the insurance cover existing immediately prior to such effective date
at least until the discharge of the cargo from its then current voyage.

 

3.5            Accounting Services

 

(only applicable if agreed
according to Box 9)

 

The Managers shall maintain records relating
to those expenditures incurred and monies received in the performance of the
Management Services that are necessary for the settlement of accounts between
the parties

 

3.6            Sale or Purchase of the Vessel

 

N/A.

 

3.7            Provisions

 

(only applicable if agreed
according to Box 11)

 

The Managers shall arrange for the supply of
provisions.

 

3.8            Bunkering

 

N/A.

 

4.                   Managers’
Obligations

 

4.1            The Managers
undertake to use their best endeavours to provide the agreed Management
Services as agents for and on behalf of the Owners in accordance with sound
ship management practice customary in the trade and at least equivalent to the
standards followed with respect to other vessels for which the Managers provide
Management Services, if any, and to protect and promote the interests of the
Owners in all matters relating to the provision of services hereunder.  Provided, however, that the Managers in the
performance of their management responsibilities under this Agreement shall be
entitled to have regard to their overall responsibility in relation to all
vessels as may from time to time be entrusted to their management and in
particular, but without prejudice to the generality of the foregoing, the
Managers shall be entitled to allocate available supplies, manpower and
services in such manner as in the prevailing circumstances the Managers in
their absolute discretion consider to be fair and reasonable.

 

4.2            Where the
Managers are providing Technical Management in accordance with sub-clause 3.2,
they shall procure that the requirements of the law of the flag of the Vessel
are satisfied and they shall in particular be deemed to be the “Company” as
defined by the ISM Code, assuming the responsibility for the operation of the Vessel
and taking over the duties and responsibilities imposed by the ISM Code when
applicable.

 

4.3            The
Management Services as such term is used herein includes the discharge on
behalf of the Owners of the Owners’ technical and operational obligations to
charterers pursuant to the Charter, a copy of which has been supplied to the
Managers, including, but not limited to the Owners’ technical and operational
obligations under Clauses 73A and 75 of such Charter.

 

4.4  Managers shall maintain records of technical
matters relating to the Vessel including maintenance, repairs and equipment
replacement (“Technical Vessel Matters”).  
Three months after commencement of the Management Services, or such
other date as agreed to by the Managers and the Owners, and quarterly thereafter,
the Managers shall issue a report to the Owners providing a summary of the
Technical Vessel Matters carried out in the previous quarter.

 

5.                   Owners’
Obligations

 

5.1            The Owners
shall pay all sums due to the Managers punctually in accordance with the terms
of this Agreement.

 

 

6.                   Insurance
Policies

 

For so long as the Managers continue to place
the Owners’ Insurances (as defined below) on behalf of the Owners in accordance
with Clause 3.4 of this Agreement, The Managers shall procure that:

 

6.1            at the Owners’
expense, the Vessel is insured for not less than her sound market value or
entered for her full gross tonnage, as the case may be for:

 

(i)                                                                  usual hull
and machinery marine risks (including crew negligence) and excess liabilities,

 

(ii)                                                               protection
and indemnity risks (including pollution risks and Crew Insurances), and

 

(iii)                                                            war risks
(including protection and indemnity and crew risks)

 

in each case in accordance with the best
practice of prudent owners of vessels of a similar type to the Vessel, with
first class insurance companies, underwriters or associations (“the Owners’
Insurances”);

 

6.2            all premiums
and calls on the Owners’ Insurances are paid by their due date at Owners’
expense and deductibles up to the amount (per claim) of (i) $185,000 for hull
and machinery marine risks insurance and (ii) $100,000 for claims under
the “Running Down Clause” and the “Fixed and Floating Objects Clause” under the
protection and indemnity risks insurance and $15,000 for all other protection
and indemnity claims shall be paid at the Managers’ expense.  In the event the level of deductibles set for
a policy period are increased above the amounts set forth in the preceding
sentence, whether by the action of the Owners, the Managers or the insurers, any
such incremental increase shall be for the Owners’ account.  The Owners shall be liable for the allocated
cost of any broker’s fee paid by the Managers as determined by the Mangers on a
fair and equitable basis.

 

6.3            the Owners’
Insurances name the Managers and, subject to underwriters’ agreement, any third
party designated by the Managers as a joint assured, with full cover, with the Managers
obtaining cover in respect of each of the Owners’ Insurances on terms whereby
the Managers and any such third party are liable in respect of premiums or
calls arising in connection with the Owners’ Insurances.

 

6.4            written
evidence is provided, to the reasonable satisfaction of the Owners, of Managers’
compliance with their obligations under Clause 6 within a
reasonable time of the commencement of the Agreement, and of each renewal date
and, if specifically requested, of each payment date of the Owners’ Insurances.

 

6.5            loss of hire
insurance is maintained in accordance with Clause 29.

 

6.6            the Managers
shall obtain hull and machinery insurance in accordance with Clause 6.1
based upon the sound market value as notified to the Managers by the Owners in
writing prior to the effective date of this Agreement.  The Owners shall notify the Managers in
writing if they reasonably require cover for a different value from time to
time, which shall not exceed 120% of the sound market value of the Vessel.  The Owners alone shall be responsible for
assessing and notifying the Managers of the necessary level of cover.

 

6.7            the Managers
shall obtain a certificate of financial responsibility in accordance with the
terms of the Charter, and any costs relating to such certificate shall be for
the Owners’ account.

 

7.                   Income
Collected and Expenses Paid on Behalf of Owners

 

7.1            All moneys
collected by the Managers under the terms of this Agreement (other than moneys
payable by the Owners to the Managers) and any interest thereon shall be held
to the credit of the Owners in a separate bank account.

 

7.2            All expenses
incurred by the Managers under the terms of this Agreement on behalf of the
Owners (including expenses as provided in Clause 8) may be debited
against the Owners in the account referred to under sub-clause 7.1
but shall in any event remain payable by the Owners to the Managers on demand.

 

8.                   Management
Fee

 

8.1            The Owners
shall pay to the Managers for their services as Managers under this Agreement a
management fee as set forth in Clause 21 (the “Management Fee”).

 

8.2            The Managers
shall, at no extra cost to the Owners, provide their own office accommodation,
office staff, facilities and stationery.

 

8.3            In the event
of the appointment of the Managers being terminated by the Owners or the
Managers in accordance with the provisions of Clauses 18 and 22 other than by
reason of default by the Managers, or if the Vessel is lost, sold or otherwise
disposed of, in addition to any applicable Management Fee payments for the 90-day
notice period set forth in Clause 22, a one-time additional fee of $45,000,
which is to cover the Managers’ cancellation costs, shall be due and payable.

 

8.4            Unless
otherwise agreed in writing all discounts and commissions obtained by the
Managers in the course of the management of the Vessel shall be credited to the
Managers.

 

9.                   Budgets and
Management of Funds

 

N/A.

 

10.            Managers
Right to Sub-Contract

 

The Managers shall not have the right to
sub-contract any of their obligations hereunder without the prior written
consent of the Owners which shall not be unreasonably withheld; provided
however, that the Managers may (i) freely assign any obligations hereunder
to any affiliate of the Managers at any time and (ii) utilize the services
of third parties to fulfill the Managers’ obligations hereunder.  In the event of such a sub-contract the
Managers shall remain fully liable for the due performance of their obligations
under this Agreement.

 

11.            Responsibilities

 

11.1                             Force
Majeure - Neither the Owners nor the Managers
shall be under any liability for any failure to perform any of their
obligations hereunder by reason of any cause whatsoever of any nature or kind
beyond their reasonable control.

 

11.2                             Liability
to Owners - (i) Without prejudice to
sub-clause 11.1, the Managers shall be under no liability whatsoever to
the Owners for any loss, damage, delay or expense of whatsoever nature, whether
direct or indirect, (including but not limited to loss of profit arising out of
or in connection with detention of or delay to the Vessel) and howsoever
arising in the course of performance of the Management Services UNLESS same is proved to have resulted solely from the
negligence or wilful default of the Managers or their employees, or agents or
sub-contractors employed by them in connection with the Vessel, in which
case  (save where loss, damage, delay or
expense has resulted from the Managers’ personal act or omission committed with
the intent to cause same or recklessly and with knowledge that such loss,
damage, delay or expense would probably result)  the Managers’ liability for each incident or
series of incidents giving rise to a claim or claims shall never exceed a total
of $2 million.

 

 

(ii)  Notwithstanding anything that may appear to the
contrary in this Agreement, the Managers shall not be liable for any of the
actions of the Crew, even if such actions are negligent or wilful, except only
to the extent that they are shown to have resulted from a failure by the
Managers to discharge their obligations under sub-clause 3.1

 

11.3                             Indemnity - Except to
the extent and solely for the amount therein set out that the Managers would be
liable under sub-clause 11.2, the Owners hereby undertake to keep
the Managers and their employees, agents and sub-contractors indemnified and to
hold them harmless against all actions, proceedings, claims, demands or
liabilities whatsoever or howsoever arising which may be brought against them
or incurred or suffered by them arising out of or in connection with the
performance of the Agreement, and against and in respect of all costs, losses,
damages and expenses (including legal costs and expenses on a full indemnity
basis) which the Managers may suffer or incur (either directly or indirectly)
in the course of the performance of this Agreement.

 

11.4                             “Himalaya” - It is
hereby expressly agreed that no employee or agent of the Managers (including
every sub-contractor from time to time employed by the Managers) shall in any
circumstances whatsoever be under any liability whatsoever to the Owners for
any loss, damage or delay of whatsoever kind arising or resulting directly or
indirectly from any act, neglect or default on his part while acting in the
course of or in connection with his employment and, without prejudice to the
generality of the foregoing provisions in this Clause 11, every
exemption, limitation, condition and liberty herein contained and every right,
exemption from liability, defence and immunity of whatsoever nature applicable
to the Managers or to which the Managers are entitled hereunder shall also be
available and shall extend to protect every such employee or agent of the
Managers acting as aforesaid and for the purpose of all the foregoing
provisions of this Clause 11 the Managers are or shall be deemed to
be acting as agent or trustee on behalf and for the benefit of all persons who
are or might be their servants or agents from time to time (including
sub-contractors as aforesaid) and all such persons shall to this extent be or
be deemed to be parties to this Agreement.

 

12.            Documentation

 

Where the Managers are providing Technical
Management in accordance with sub-clause 3.2 and/or Crew Management
in accordance with sub-clause 3.1, they shall make available, upon
Owners’ request, all documentation and records related to the Safety Management
System (SMS) and/or the Crew which the Owners need in order to demonstrate
compliance with the ISM Code and STCW 95 or to defend a claim against a
third party.  The Owner shall make
available, upon Managers’ request, all information, documentation and records
required under any flag state law, regulation or international convention and
to inform the Managers of any changes to those of the Owner’s details that that
are required in the Vessel’s continuous synopsis record for the purposes of the
ISPS Code .

 

13.            General
Administration

 

13.1                             The Managers
shall handle and settle all claims arising out of the Management Services
hereunder and keep the Owners informed regarding any incident of which the
Managers become aware which gives or may give rise to claims or disputes
involving third parties; provided, that the settlement of any claims relating
to general average or total constructive loss must be done at the direction of
the Owners with the Owners’ involvement in such settlements..

 

13.2                             The Managers
shall, as instructed by the Owners, bring or defend actions, suits or
proceedings in connection with matters entrusted to the Managers according to
this Agreement.

 

13.3                             The Managers
shall also have power to obtain legal or technical or other outside expert
advice in relation to the handling and settlement of claims and disputes or all
other matters affecting the interests of the Owners in respect of the Vessel.

 

13.4                             The Owners
shall arrange for the provision of any necessary guarantee bond or other
security.

 

13.5                             Any costs
reasonably incurred by Managers in carrying out its obligations according to Clause
13 in connection with matters entrusted to the Managers under this Agreement shall
be reimbursed by the Owners.

 

13.6                             The Managers
are authorized to receive sums payable by third parties to the Owners,
including, but not limited to the proceeds of insurance subject to Clause 30,
the settlement of claims and under any legal proceedings or arbitrations or any
settlement of claims.  Where the event(s)
which form the subject of such claims have caused the Managers expense under
this Agreement, the Managers are entitled to retain all or part of such
settlements equal to the amount expended by the Managers.

 

14.            Auditing

 

N/A

 

15.            Inspection
of Vessel

 

The Owners shall have the right at any time
after giving reasonable notice to the Managers to inspect the Vessel for any
reason they consider necessary. The Owners and Managers agree to meet on a
quarterly basis at the offices of the Managers to discuss the technical
management of the Vessel.

 

16.            Compliance
with Laws and Regulations

 

The Managers will not do or permit to be done
anything which might cause any breach or infringement of the laws and
regulations of the Vessel’s flag, or of the places where she trades.

 

17.            Duration of
the Agreement

 

This Agreement shall come into effect in
accordance with Clause 2 and terminate in accordance with Clauses 18 and
22.

 

18.            Termination

 

18.1                             Owners’
default

 

(i)                                                                  The Managers
shall be entitled to terminate the Agreement with immediate effect by notice in
writing if any moneys payable by the Owners under this Agreement shall not have
been received in the Managers’ nominated account within ten running days of
receipt by the Owners of the Managers’ written request or if the Vessel is
repossessed by the Mortgagees.

 

(ii)                                                               If the Owners:

 

proceed with the employment of or continue to employ the Vessel in the
carriage of contraband, blockade running, or in an unlawful trade, or on a
voyage which in the reasonable opinion of the Managers is unduly hazardous or
improper, the Managers
may give notice of the default to the Owners, requiring them to remedy it as
soon as practically possible.  In the
event that the Owners fail to remedy it within a reasonable time to the
satisfaction of 

 

 

the Managers, the Managers shall
be entitled to terminate the Agreement with immediate effect by notice in
writing.

 

18.2                             Managers’
Default

 

If the Managers fail to meet their obligations
under Clauses 3 and 4 of this Agreement for any reason
within the control of the Managers, the Owners may give notice to the Managers
of the default, requiring them to remedy it as soon as practically
possible.  In the event that the Managers
fail to remedy it within a reasonable time to the satisfaction of the Owners,
the Owners shall be entitled to terminate the Agreement with immediate effect
by notice in writing.

 

18.3                             Extraordinary
Termination

 

This Agreement shall be deemed to be
terminated in the case of the sale of the Vessel or if the Vessel becomes a
total loss or is declared as a constructive or compromised or arranged total
loss or is requisitioned.

 

18.4                             For the
purpose of sub-clause 8.3 hereof

 

(i)                                                                  the date
upon which the Vessel is to be treated as having been sold or otherwise
disposed of shall be the date on which the Owners cease to be registered as
Owners of the Vessel;

 

(ii)                                                               the Vessel
shall not be deemed to be lost unless either she has become an actual total
loss or agreement has been reached with her underwriters in respect of her
constructive, comprised or arranged total loss or if such agreement with her
underwriters is not reached it is adjudged by a competent tribunal that a
constructive loss of the Vessel has occurred.

 

18.5                             This
Agreement shall terminate forthwith in the event of an order being made or
resolution passed for the winding up, dissolution, liquidation or bankruptcy of
either party (otherwise than for the purpose of reconstruction or amalgamation)
or if a receiver is appointed, or if it suspends payment, ceases to carry on
business or makes any special arrangement or composition with its creditors.

 

18.6                             The
termination of this Agreement shall be without prejudice to all rights accrued
due between the parties prior to the date of termination.

 

19.            Law and
Arbitration

 

19.1                             This Agreement
shall be construed and the relations between the parties determined in
accordance with the laws of the State of New York, U.S.A.

 

19.2                             All disputes
arising out of this Agreement shall be referred to arbitration in New York in
accordance with the Rules of the Society of Marine Arbitrators, Inc.,
New York (SMA).  Any award of the
arbitrator(s) shall be final and binding and not subject to appeal.

 

20.            Notices

 

20.1                             Any notice
to be given by either party to the other party shall be in writing and may be
sent by fax, telex, registered or recorded mail or by personal service.

 

20.2                             The address
of the Parties for service of such communication shall be as stated in Boxes
19 and 20, respectively.

 

21.            MANAGEMENT
FEE

 

During the first two years following the effective date of this
Agreement as set forth in Clause 2, the Owners shall pay to the Managers
for the Management Services under this Agreement a fixed daily management fee
(the “Management Fee”), of $6,500 per day, or part of a day, payable monthly in
advance based on the actual number of days in the applicable month.  The Management Fee shall increase by 2.5% per
contract year thereafter for so long as this Agreement is in effect.  Unless otherwise expressly provided in this
Agreement, the Management Fee shall constitute payment in full for all of the
Management Services, (which expression, for the avoidance of doubt for these
purposes, includes the cost of insurance deductibles pursuant to Clause 6.2
(but not insurance premiums or calls), drydocking (subject to Clause 28), repairs
 (subject to Clauses 27 and 28) and the
personnel and items supplied and arranged as part of the Management Services,
including but not limited to the Crew, stores, spares and lubricating oil and
their transportation).

 

22.            DURATION AND
TERMINATION

 

The term of this Agreement shall begin at the time specified in Clause 2
and shall continue in force until the expiration of the Charter, unless terminated
in accordance with Clause 18 of this Agreement; provided, however, that (i) the
Managers shall have the right to terminate this Agreement upon 90 days, prior
written notice to the Owners following the second anniversary of the effective
date of this Agreement and (ii) the Owners shall have the right to
terminate this Agreement upon 90 days prior written notice to the Managers at
any time.

 

23.            COMMUNICATIONS

 

All communications under this Agreement shall be in the English
language.

 

24.            ASSIGNMENT
CLAUSE

 

The Owners may, upon giving notice to the Managers, assign all of their
rights under this Agreement to any mortgagee of the Vessel provided that such
assignment shall not otherwise prejudice any of the rights of the Managers
under this Agreement.  The Managers shall
acknowledge any assignment that complies with this Clause in such form as the
mortgagee may reasonably request.

 

25.            THIRD PARTY
RIGHTS

 

Except as stated in this Clause, the parties to this Agreement do not
intend that any of the terms will be enforceable by any person not a party to
it.  This clause shall not apply to
companies in the same groups as either the Owners or the Managers or to crew or
to employees, sub-contractors and agents of the Managers to whom
Clause 11.4 “Himalaya” would apply but for this clause.

 

 

26.            INDEMNIFICATION

 

Notwithstanding anything to the contrary in this Agreement, but subject
to Clause 11.2, the Managers shall indemnify the Owners against the
consequences of any failure by Managers to comply with the requirements of this
Agreement.  This indemnity shall include
(without limitation) liabilities which the Owners may incur to the Charterers pursuant
to the Charter  resulting from a failure
of the Managers to perform their obligations under this Agreement.  The Managers’ liability under this indemnity
in relation to environmental claims and such third party claims against the
Vessel or the Owners that are included in the terms of the protection and
indemnity insurance of the Vessel shall be limited to the terms of such
protection and indemnity insurance.

 

	
  27.

  	
  CHANGES
  AND/OR IMPROVEMENT NECESSARY FOR THE OPERATION OF THE VESSEL OR IMPOSED BY
  LEGISLATION, CLASS OR VETTING APPROVALS

  

 

In the event that any improvement, structural change or the installation
of new equipment is imposed by (a) compulsory legislation, (b) class rules or
(c) an oil company whose vetting approval is required pursuant to Clause
57 of the Charter, the Managers shall, at the expense of the Owners effect such
improvement, structural change or installation. 
The Owners shall reimburse the Managers for all costs arising under this
clause no later than the fifth business day following notice from the
Managers.  Owners shall not be liable for
the cost of any improvement, structural change or installation that is
requested by or made for the account of the Charterer or for which the
Charterer is otherwise responsible.

 

In the event any improvement, structural change or the installation of
new equipment is deemed necessary by the Managers but is not imposed or
required pursuant to the first paragraph of this Clause 27, Managers shall
have the right, at their own cost, to effect such improvement, structural
change or installation, with the Owners consent which shall not be unreasonably
withheld.

 

The Owners shall be notified in writing in advance by the Managers about
any changes and/or improvements under this Clause 27.

 

Any change, improvement or installation made pursuant to this
Clause 27 (other than any change or improvement to, or installation of,
equipment that belongs to the Managers or a third party) shall be the property
of Owners.

 

28.            REIMBURSEMENT
OF DRYDOCKING EXPENSES; UNANTICIPATED REPAIRS

 

Such portion of the Management Fee under this Agreement set forth on Schedule 1
hereto (the “Drydock Fee Component”) is deemed to be attributed to the cost of
the drydockings scheduled to be performed on the Vessel during the term of this
Agreement (each an “Anticipated Drydocking”). 
Schedule 2 attached hereto sets forth the dates of the Anticipated
Drydocking and the associated drydocking costs agreed to by the Managers and
the Owners (the “Agreed Drydocking Cost”). 
Throughout the term of the Agreement, the Managers shall maintain the
balance of a notional account (the “Drydock Account”) which (a) shall be
credited in an amount equal to the applicable Drydock Fee Component at the time
of each monthly payment of the Management Fee and (b) shall be debited in
an amount equal to the Agreed Drydocking Cost at the time any Anticipated
Drydocking is completed (regardless of whether the drydock costs actually
incurred by the Managers are in fact less than or greater than the Agreed
Drydocking Cost).  The Managers are not
required to physically maintain the Drydock Account in a bank account, nor
provide for any interest thereon.

 

Upon the termination of this Agreement by either party, (i) to the
extent the Drydock has a credit balance, the Managers shall pay to the Owners
an amount equal to such credit balance, and (ii) to the extent the Drydock
Account has a debit balance, the Owners shall pay to the Managers an amount
equal to such debit balance.

 

In the event any repairs to the Vessel are required to be made following
the initial  Anticipated Drydocking that
are reasonably unanticipated by the Managers and not due to the fair wear and
tear of the Vessel or its components and are not fully covered by hull and
machinery insurance or warranty, the cost attributable to such repairs in
excess of such insurance coverage and deductibles which may occur at a
subsequent Anticipated Drydocking or otherwise (in excess of any applicable
insurance or warranty payments) shall be for the account of the Owner.

 

29.            LOSS OF HIRE
INSURANCE

 

The Managers shall procure, at the Owners’ expense, loss of hire
insurance on behalf of Owners on terms and conditions as requested by the
Owners subject to the availability of such coverage on commercially reasonable
terms. The Managers shall not be responsible for any deductible payments with
respect to such loss of hire insurance. 
The Managers shall arrange for loss of hire insurance, with a deductible
of 21days and maximum coverage of 120 days, to be in place as of the effective
date of this Agreement.

 

30.            PROCEEDS OF INSURANCES

 

The Managers shall procure, with the Owners’ cooperation where required,
that loss payable clauses are attached to the various policies of insurance
over the Vessel so as to direct the proceeds of insurance as follows:

 

a)  In the event of actual or constructive total loss of the
Vessel, the hull and machinery insurance proceeds shall be paid by the insurer
directly to the Owners or their assignees;

 

b)  In the event of damage or partial loss to the Vessel, the
hull and machinery insurance proceeds shall be paid by the insurer directly to
the Managers or their assignees to be held and utilized in accordance with
Clause 7.

 

 

31.            LUBRICATING OILS AND GREASES AND OTHER ITEMS BELONGING TO THE MANAGERS

 

Unused lubricating oils and greases and the items set forth on Schedule 3
to this Agreement on board the Vessel at the time of delivery to the Owners and
commencement of the Management Services under this Agreement are the property
of the Managers.  The Managers will
provide lubricating oils and greases while this Agreement is in force pursuant
to Clause 3.2 (iii).  Upon termination of
this Agreement for any reason, the Owners shall pay the Managers for the cost
price of unused/unbroached lubricating oils and greases in sealed drums and in
storage tanks and Managers shall remove the items set forth on Schedule 3
and any other items that it owns or leases at Managers’ expense.

 

32.            ISPS CODE

 

The Managers shall perform the duties of the “Company” as required by
the ISPS Code.  The Managers shall also
perform the Owners’  obligations and
benefit from the Owner’s rights under the BIMCO ISPS Code Time Charter Party
Clause in the charterparty referred to in Clause 22 of this Agreement.  The Managers shall be entitled to retain any
sums received or recovered from charterers or from any other party in relation
to ISPS Code actions and duties.  If the
Managers incur expenditure as a result of complying with the ISPS Code or
making prudent security precautions that does not fall to be apportioned or is
not recoverable from sub-charterers pursuant to the BIMCO ISPS Code Time
Charter Party Clause, the Owners shall indemnify the Managers for such
expenditure as invoiced to the Owners with full supporting documentation.

 

 

	
  ANN TANKER CORPORATION

  	
  TANKER MANAGEMENT LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
  Name:

  
	
  Title:

  	
  Title:

  
						

 

 

SCHEDULE 1

M/T Overseas Ann – Management Fee and Drydock Fee Component

 

	
  CHARTER

  YEAR

  	
   

  	
  COMMENCING

  (0001 GMT)

  	
   

  	
  ENDING

  (2400 GMT)

  	
   

  	
  MANAGEMENT

  FEE

  	
   

  	
  DRYDOCK FEE

  COMPONENT

  
	
  1

  	
   

  	
  October 17, 2005

  	
   

  	
  October 16, 2006

  	
   

  	
  USD 6,500 per day

  	
   

  	
  USD 750 per day

  
	
  2

  	
   

  	
  October 17, 2006

  	
   

  	
  October 16, 2007

  	
   

  	
  USD 6,500 per day

  	
   

  	
  USD 750 per day

  
	
  3

  	
   

  	
  October 17, 2007

  	
   

  	
  October 16, 2008

  	
   

  	
  USD 6,663 per day

  	
   

  	
  USD 769 per day

  
	
  4

  	
   

  	
  October 17, 2008

  	
   

  	
  October 16, 2009

  	
   

  	
  USD 6,829 per day

  	
   

  	
  USD 788 per day

  
	
  5

  	
   

  	
  October 17, 2009

  	
   

  	
  October 16, 2010

  	
   

  	
  USD 7,000 per day

  	
   

  	
  USD 808 per day

  
	
  6

  	
   

  	
  October 17, 2010

  	
   

  	
  October 16, 2011

  	
   

  	
  USD 7,175 per day

  	
   

  	
  USD 828 per day

  
	
  to 6 1/2

  	
   

  	
  October 17, 2011

  	
   

  	
  April 16, 2012

  	
   

  	
  USD 7,354 per day

  	
   

  	
  USD 849 per day

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OPTION

  YEAR

  	
   

  	
  COMMENCING

  (0001 GMT)

  	
   

  	
  ENDING

  (2400 GMT)

  	
   

  	
  MANAGEMENT

  FEE

  	
   

  	
  TIME CHARTER

  RATE

  
	
  1

  	
   

  	
  April 17, 2012

  	
   

  	
  October 16, 2012

  	
   

  	
  USD 7,354 per day

  	
   

  	
  USD 849 per day

  
	
   

  	
   

  	
  October 17, 2012

  	
   

  	
  April 16, 2013

  	
   

  	
  USD 7,538 per day

  	
   

  	
  USD 870 per day

  
	
  2

  	
   

  	
  April 17, 2013

  	
   

  	
  October 16, 2013

  	
   

  	
  USD 7,538 per day

  	
   

  	
  USD 870 per day

  
	
   

  	
   

  	
  October 17, 2013

  	
   

  	
  April 16, 2014

  	
   

  	
  USD 7,726 per day

  	
   

  	
  USD 892 per day

  
	
  3

  	
   

  	
  April 17, 2014

  	
   

  	
  October 16, 2014

  	
   

  	
  USD 7,726 per day

  	
   

  	
  USD 892 per day

  
	
   

  	
   

  	
  October 17, 2014

  	
   

  	
  April 16, 2015

  	
   

  	
  USD 7,920 per day

  	
   

  	
  USD 914 per day

  
	
  4

  	
   

  	
  April 17, 2015

  	
   

  	
  October 16, 2015

  	
   

  	
  USD 7,920 per day

  	
   

  	
  USD 914 per day

  
	
   

  	
   

  	
  October 17, 2015

  	
   

  	
  April 16, 2016

  	
   

  	
  USD 8,118 per day

  	
   

  	
  USD 937 per day

  
	
  5

  	
   

  	
  April 17, 2016

  	
   

  	
  October 16, 2016

  	
   

  	
  USD 8,118 per day

  	
   

  	
  USD 937 per day

  
	
   

  	
   

  	
  October 17, 2016

  	
   

  	
  April 16, 2017

  	
   

  	
  USD 8,321 per day

  	
   

  	
  USD 960 per day

  
	
  6

  	
   

  	
  April 17, 2017

  	
   

  	
  October 16, 2017

  	
   

  	
  USD 8,321 per day

  	
   

  	
  USD 960 per day

  
	
   

  	
   

  	
  October 17, 2017

  	
   

  	
  April 16, 2018

  	
   

  	
  USD 8,529 per day

  	
   

  	
  USD 984 per day

  
	
  7

  	
   

  	
  April 17, 2018

  	
   

  	
  October 16, 2018

  	
   

  	
  USD 8,529 per day

  	
   

  	
  USD 984 per day

  
	
   

  	
   

  	
  October 17, 2018

  	
   

  	
  April 16, 2019

  	
   

  	
  USD 8,742 per day

  	
   

  	
  USD 1,009 per day

  
	
  8

  	
   

  	
  April 17, 2019

  	
   

  	
  October 16, 2019

  	
   

  	
  USD 8,742 per day

  	
   

  	
  USD 1,009 per day

  
	
   

  	
   

  	
  October 17, 2019

  	
   

  	
  April 16, 2020

  	
   

  	
  USD 8,960 per day

  	
   

  	
  USD 1,034 per day

  

 

 

SCHEDULE 2

M/T Overseas Ann – Estimated Date of Anticipated Drydocking

and Agreed Drydocking Cost

 

	
  ESTIMATED DATE

  OF ANTICIPATED

  DRYDOCKING

  	
   

  	
  AGREED

  DRYDOCKING

  COST

  
	
  3q
  2006

  	
   

  	
  $

  	
  400,000

  
	
  1q
  2009

  	
   

  	
  $

  	
  315,000

  
	
  3q
  2011

  	
   

  	
  $

  	
  940,000

  
	
  1q
  2014

  	
   

  	
  $

  	
  850,000

  
	
  3q
  2016

  	
   

  	
  $

  	
  1,545,000

  
	
  1q
  2019

  	
   

  	
  $

  	
  1,280,000

  

 

 

SCHEDULE 3

 

The following
items that are on board the Vessel as of the effective date of this Agreement
are and will remain the property of the Managers.  These items may remain on board at the sole
discretion of and for the use and convenience of the Managers and may be
removed at any time after the effective date of this Agreement at the expense
of the Managers.

 

1.               Bunkers (IFO and
MDO/MGO)

 

2.               Victualling
(provisions)

 

3.               All onboard log
books up to the time and date of delivery for deck, engine and radio

 

4.               Seller’s company
forms, documents / stationery and all correspondence and company manuals

 

5.               All ISPS, ISM and
quality documentation and correspondence

 

6.               Vessel’s Rydex
communications e-mail system and server

 

7.               Training video
library, books

 

8.               Oxygen / acetylene
/ freon / nitrogen / argon cylinders / bottles

 

9.               Crew/officers
library / walport videos

 

10.         Master’s slopchest/bonded
stores; personal effects of master, officers and crew

 

11.         Personal hand-held
computers

 

12.         Personal cell phones

 

13.         Contents of master’s safe

 

14.         Arms / ammunition

 

15.         Works of art, originals,
copies, prints, statues

 

16.         Safety clothing / hats or
other shirts/hats with OSG logo

 

17.         Certificates/documents to
be returned to authorities

 

18.         Seagull training software

 

19.         All Seller’s non-class
computer software and server

 

20.         Chartco
digital chart updates system software

 

21.         Any rented or leased or
third party’s equipment

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]