Document:

Exhibit 10.153

 

Final Version

 

V8 POOL INC.

 

As Company

 

-and-

 

GMR STRENGTH LLC

 

As Participant

 

 

POOL AGREEMENT

 

 

Relating to  “Genmar Strength, to be renamed Gener8 Pericles”

 

 

INDEX

 

	
CLAUSE
    	
 
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    	
 
    
	
1
    	
DEFINITIONS
    	
 
    	
1
    
	
2
    	
PURPOSE OF THE POOL —   SHARING OF REVENUES AND LIABILITIES
    	
 
    	
2
    
	
All Third Party   Charters shall, to the extent possible, be for the same period as the   Contract of Affreightment that is being covered
    	
 
    	
3
    
	
3
    	
PERIOD OF THE VESSEL’S   PARTICIPATION IN THE POOL
    	
 
    	
3
    
	
4
    	
POOL VESSEL TOTAL COSTS
    	
 
    	
4
    
	
5
    	
VESSEL’S TOTAL COSTS   UPON ENTRY
    	
 
    	
6
    
	
6
    	
TIME CHARTER PARTY
    	
 
    	
6
    
	
7
    	
COMMERCIAL MANAGEMENT   AGREEMENT/MANAGEMENT FEE
    	
 
    	
7
    
	
8
    	
DISTRIBUTION
    	
 
    	
8
    
	
9
    	
ACCOUNTING
    	
 
    	
9
    
	
10
    	
WORKING   CAPITAL CONTRIBUTION AND RETENTION
    	
 
    	
10
    
	
11
    	
POOL   COMMITTEE
    	
 
    	
11
    
	
12
    	
CALCULATION   OF POOL NET REVENUE/LOSS; POOL GROSS REVENUE AND POOL EXPENSES
    	
 
    	
12
    
	
13
    	
INSURANCE
    	
 
    	
15
    
	
14
    	
ASSIGNMENT   OF EARNINGS
    	
 
    	
20
    
	
15
    	
WITHDRAWAL/TERMINATION
    	
 
    	
20
    
	
16
    	
NATURE   OF THE AGREEMENT
    	
 
    	
22
    
	
17
    	
CONFIDENTIALITY
    	
 
    	
22
    
	
18
    	
TOTAL   LOSS
    	
 
    	
23
    
	
19
    	
CHOICE   OF LAW AND JURISDICTION
    	
 
    	
23
    
	
20
    	
NOTICES
    	
 
    	
24
    
	
21
    	
ENTIRE   AGREEMENT
    	
 
    	
24
    
	
22
    	
RIGHTS   OF THIRD PARTIES
    	
 
    	
25
    
	
STANDARD   POOL TIME CHARTERAPPENDIX 3.2
    	
 
    	
30
    
	
[not applicable]
    	
 
    	
30
    
					

 

 

THIS POOL PARTICIPATION AGREEMENT is entered into on the 11 day of June 2015

 

BETWEEN

 

(1)                                 V8 Pool Inc, a Marshall Island corporation having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 (“the Company”) and

 

(2)                                 GMR Strength LLC, a Liberian corporation having its registered office at 80 Broad Street, Monrovia, Liberia (“the Participant”)

 

WHEREAS

 

(A)                               The Participant is the owner or disponent owner of m.t.  “Genmar Strength”, to be renamed “Gener8 Pericles” (“the Vessel”);

 

(B)                               The Company and the Participant have agreed that the Vessel should be entered into the pool defined below; and

 

(C)                               The Vessel will be entered into the Pool by way of a time charter party between the Company and the Participant.

 

IT IS HEREBY AGREED as follows:

 

1                                                DEFINITIONS

 

1.1                                      In this Agreement the following terms shall have the following meanings:

 

“Affiliate” :  in respect of any person, means a Subsidiary of that person or a Holding  Company of that person or any other Subsidiary of that Holding Company.

 

“Holding Company” :  in relation to any person, means any other person, company or corporation in respect of which it is a Subsidiary.

 

“Pool” :  the Pool of AFRAMAX tankers operated by the Company.

 

“Pool Committee”  :  the committee described in Clause 11.

 

 

“Pool Participants” :  all entities having entered into Pool Participation Agreements with the Company.

 

“Pool Vessels” :  vessels entered and delivered into the Pool by Pool Participants.

 

“Quarter Date” :  each of 1st January, 1st April, 1st July and 1st October of any year.

 

“Sanctioned Person” :  any person, being an individual, corporation, company, association or government, who is listed as being subject to a sanction, regulation, official embargo or on any ‘Specially Designated Nationals List’ or ‘Blocked Persons’ lists’, or any equivalent lists maintained and imposed by the United Nations, European Union, Her Majesty’s Treasury in the United Kingdom or the United States Department of Treasury’s Office of Foreign Assets Control.

 

“Subsidiary” :  of a person means any other person:

 

(a)                          directly or indirectly controlled by such person; or

 

(b)                          of whose dividends or distributions on ordinary voting share capital such person is entitled to receive more than 50 per cent.

 

“Technical Committee” :  the committee described in Clause 4.

 

“Time Charter Party” :  the time charter party described in Clause 6.

 

“Third Party” :  a party which is neither a direct or indirect affiliate or subsidiary of or otherwise associated with the Participant.

 

2                                                PURPOSE OF THE POOL — SHARING OF REVENUES AND LIABILITIES

 

2.1                                      The main objective of the Pool is to enter into arrangements for the commercial employment and operation of the Pool Vessels, arranged by the Company, so as to secure for the Pool Participants the highest earnings per Pool Vessel on the basis of pooling the revenue of the Pool Vessels and dividing it between the Pool Participants on the terms hereof.

 

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2.2                                      The Company shall in its own name (as disponent owner) enter into contracts for the employment of the Pool Vessels.  The Company shall have authority, as Time Charter Party owners, to negotiate and conclude spot charters, consecutive voyage charters, contracts of affreightment and time charters for performance by the Pool Vessels provided that the maximum possible period for such contracts shall not exceed seven (7) months.

 

2.3                                      All revenues earned from the operation of the Pool Vessels shall, after deduction of all costs involved in the operation of the Pool, be shared between the Pool Participants. The Company accordingly shall not participate in the financial result of the Pool’s activities but only serve as a vehicle for entering into contracts and for the marketing of the Pool.

 

2.4                                      The Pool shall operate as a profit unit, separately from any other activities of the Company.

 

2.5                                      The Company shall be entitled to enter into charters, as charterers, with third party owners or disponent owners (“Third Party Charters”), for the purpose of chartering in vessels from such third party owners or disponent owners (“Third Party Vessels”)  in order to perform any contract of affreightment time charter trips entered into by the Company pursuant to the provisions of clause 2.2 hereof  (“Contracts of Affreightment”) and which cannot be performed (whether in whole or in part) by any of the existing Pool Vessels.

 

All Third Party Charters shall, to the extent possible, be for the same period as the Contract of Affreightment that is being covered.

 

3                                                PERIOD OF THE VESSEL’S PARTICIPATION IN THE POOL

 

3.1                                      The Vessel shall, subject to Clause 15 hereof, be placed at the disposal of the Company for a minimum period of twelve (12) months.

 

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4                                                POOL VESSEL TOTAL COSTS

 

4.1                                      The Pool revenues shall be shared according to a distribution key based on the Pool’s total cost allocated to each Pool Vessel (“Total Costs”). The Total Costs allocated to the Vessel shall, as correctly as possible, reflect the relative operating costs of the Vessel compared with the other Pool Vessels.

 

4.2                                      The basis for the calculation of Total Costs is set out in Appendix 1. At the start of each year during January, the Company shall submit to the Pool Committee for its approval a proposal for the revised basis of calculations for the ensuing year commencing on 1 January (the “Annual Calculation Review”). Upon such approval by the Pool Committee, the Company will calculate or, as the case may be, recalculate Total Costs for each Pool Vessel in accordance with the revised principles of calculation which shall take effect for the whole calendar year from 1 January. The approved revised principles of calculation resulting from the Annual Calculation Review shall take effect as the new Appendix 1 to this Agreement with effect from 1 January of the relevant year, replacing the previous year’s version of Appendix 1.

 

4.3                                      The Vessel shall initially be allocated the Total Costs stated in 5.1 below (the “Initial Total Costs”). The Vessel’s performance shall be reviewed by the Technical Committee on the third Quarter Date occurring after the date the Vessel has entered into the Pool (the “Delivery Date”) or, in the event that there is insufficient data on such third Quarter Date, on the fourth Quarter Date occurring after the Delivery Date (the “Initial Performance Review”). The Initial Performance Review will be based on the actual speed and consumption data of the Vessel received since the Delivery Date and the Initial Total Costs will be revised to take into account the results of such review. The results of the Initial Performance Review shall be circulated to the Participant before, and apply on and from, the first Quarter Date falling after the Initial Performance Review date. The new Total Costs determined from the Initial Performance Review shall apply:

 

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(a)                          retrospectively from the Delivery Date up to (but not including) the third Quarter Date occurring after the Delivery Date as definitive performance-based Total Costs; and

 

(b)                          provisionally from the third Quarter Date occurring after the Delivery Date for the next three quarter periods until the results of the first Periodic Performance Review (as described in clause 4.4 below) are determined and circulated to the Participant. For the avoidance of doubt, the application of the results of the Initial Performance Review under this sub-paragraph (b) will involve a retrospective Total Costs adjustment to the first (or in some cases, the first two) of the above three quarter periods,

 

and the Participant’s entitlement to distributions for the above periods following the Initial Performance Review shall be adjusted accordingly. If this Agreement is terminated prior to the Initial Performance Review, the Vessel’s performance shall be reviewed by the Technical Committee based on the Vessel’s performance data received since the Delivery Date and the Initial Total Costs will be revised to take into account the results of such review (the “Termination Performance Review”). The new Total Costs, determined from the Termination Performance Review, shall apply retrospectively from the Delivery Date up to the date of termination of this Agreement as definitive performance-based Total Costs and the Participant’s entitlement to distributions for such period shall be adjusted accordingly.

 

4.4                                      Further on-going performance reviews of the Vessel based on the Vessel’s actual speed and consumption data shall be conducted on the fifth Quarter Date following the Delivery Date and on every second Quarter Date thereafter (each a “Periodical Performance Review”). Each Periodical Performance Review shall be based on the Vessel’s performance data from the previous twelve (12) months and following such review, the Vessel’s Total Costs shall be revised to take into account the results of such review. The results of each Periodical Performance Review shall be circulated to the Participant before, and apply on and from, the first Quarter Date falling after such

 

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Periodical Performance Review date. The new Vessel’s Total Costs determined from each Periodical Performance Review shall apply:

 

(a)                          retrospectively for the two quarter periods ending on (but not including) the relevant Periodical Performance Review date as definitive performance-based Total Costs; and

 

(b)                          provisionally for the next three quarter periods following such Periodical Performance Review date until the results of the next Periodic Performance Review are determined and circulated to the Participant. For the avoidance of doubt, the application of the results of such Periodical Performance Review under this sub-paragraph (b) will involve a retrospective Total Costs adjustment to the first of the above three quarter periods,

 

and the Participant’s entitlement to distributions for the above periods following each Periodical Performance Review shall be adjusted accordingly.

 

4.5                                      The Technical Committee shall consist of one member nominated by the Manager and one member elected by the Company every year.

 

5                                                VESSEL’S TOTAL COSTS UPON ENTRY

 

5.1                                      At the time that the Vessel enters into the Pool, the Total Costs that shall be allocated to the Vessel shall be US$ 11,708.

 

6                                                TIME CHARTER PARTY

 

6.1                                      The Participant/the Vessel shall at any and all times during the term of this Agreement comply with the conditions, terms and warranties expressed or implied in this Agreement and in the Time Charter Party which shall be deemed to be an integral part of this Agreement.  The terms of the main Pool Participation Agreement shall prevail if a conflict should arise in the interpretation of the terms of the main Pool Participation Agreement and the terms of the Time Charter Party.

 

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6.2                                      When a Participant enters a Vessel into the Pool where the Participant is the owner or the bareboat charterer of the Vessel then the time charter party between the Company and the Participant shall be in the form attached hereto at Appendix 3.1.

 

6.3                                      When a Participant enters a Vessel in the Pool where the Participant has the Vessel on time charter then the time charter party between the Company and the Participant shall be on back-to-back terms with the terms of the time charter between the Participant and the Vessel’s owners or disponent owners subject always to the cover page of Appendix 3.2.

 

6.4                                      The charter party entered into between the Company and the Participant, whether pursuant to clause 6.2 or clause 6.3 above, shall be the Time Charter Party.  In the event that the Time Charter Party departs from the standard time charter terms of the Pool (attached hereto as Appendix 3.1) and such variations, in the opinion of the Pool Committee, have an effect on the earning potential of the Vessel, then such difference shall be reflected in the Total Costs allocated to the Vessel.

 

6.5                                      Where the Participant is not the head owner of the Vessel, the Participant is obliged to notify the Company in advance and as soon as practicable of any planned change of Vessel ownership or technical management further up the charter chain for the Vessel. For the avoidance of doubt, any such change of Vessel ownership or technical management shall not affect any of the terms of this Agreement, including the Time Charter Party.

 

6.6                                      All time under the Time Charter Party shall be recorded in GMT.

 

7                                                COMMERCIAL MANAGEMENT AGREEMENT/MANAGEMENT FEE

 

7.1                                      The Company has entered into a Commercial Management Agreement with Navig8 Asia Pte Ltd (“the Manager”).  The Commercial Management Agreement is annexed hereto as Appendix 2.  The Company shall pay a management fee to the Manager (“the Management Fee”) in consideration of the services rendered by the Manager under the

 

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Commercial Management Agreement and an administration fee to the Manager (“the Administration Fee”).

 

7.2                                      The Management Fee shall be a two (2) percent commission on all income received under all contracts (voyage charters, consecutive voyage charters, contracts of affreightment and time charters) entered into for the account of the Company in relation to the Vessel (apart from the time charters which form part of the Pool Participation Agreement).  The commission shall be calculated by reference to and upon all hire, freight, deadfreight and demurrage collected on such transactions.

 

7.3                                      The Administration fee shall be two hundred and fifty dollars ($250) per day during the term of this Agreement in relation to the Vessel and the Administration Fee shall be payable on a monthly basis in arrears at the end of the first week of each month.

 

8                                                DISTRIBUTION

 

8.1                                      The Company shall invoice and collect all hire, freight, demurrage and other revenues due as a result of the Pool activities.  The Company will, on behalf of the Pool, pay all expenses payable by it as the Charterer under the Time Charter Party and pay the Management Fee and Administration Fee.  The resulting Net Pool Revenue (as determined in accordance with Clause 12) shall be distributed as time charter hire to each Participant in accordance with the Total Costs of the individual Pool Vessels, adjusted for any off-hire, in accordance with the terms of this Agreement.

 

8.2                                      Distribution of time charter hire shall be made on a provisional basis, calculated on the basis outlined in Clause 12 hereof within the first week of each month. The provisional distribution to be based on the period up to the end of the previous month. The Participant’s entitlement to receive such provisional hire shall always be subject to the cash flow requirements of the Company.

 

8.3                                      The Company shall every quarter furnish the Participant with a provisional report on the financial result of the operation of the Pool for the preceding quarter and the

 

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Vessel’s earnings shall be adjusted taking into account the provisional monthly hire payments and the Vessel’s actual operating days in the Pool.

 

8.4                                      Further, the Company shall, not later than six (6) months after the end of its financial year (31 March) present to the Participant audited final accounts for the preceding financial year.

 

8.5                                      In the event that there is a breach by the Participant of its obligations under this Agreement (including the Time Charter Party), the Company has the right to set off an amount equal to the damages that the Company has incurred as a result of such breach against the distributions payable by the Company under clauses 8.1 and 8.2 or any working capital that is repayable by the Company under clause 10.

 

9                                                ACCOUNTING

 

9.1                                      The Manager shall keep such records and accounts as shall be necessary or appropriate for the proper operation of the Pool, including such accounts as shall be necessary for the calculation of distributions.

 

9.2                                      The Manager shall maintain systems of internal controls designed to provide reasonable assurance that transactions are properly executed sufficient to meet the requirements of an independent audit performed in accordance with International Auditing Standards.

 

9.3                                      The Manager shall no later than the 30th day following the end of each quarter, prepare and distribute to each Pool Participant unaudited accounts for the Pool (the “Pool Accounts”) and for each Pool Vessel for the period from 1 April to the end of the relevant quarter.  These quarterly, unaudited Pool Accounts shall include aggregate quarterly accounts with separate calculations made for each quarter.

 

9.4                                      The quarterly Pool Accounts must show:

 

(a)                          Net Pool Revenue and the total distributions made to Pool Participants to date;

 

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(b)                          Time charter equivalent income for all voyages and charters performed by each Pool Vessel;

 

(c)                           The balance on the Company Bank Account and an appropriate reconciliation statement;

 

(d)                          Outstanding freight/demurrage due in respect of contracts performed by Pool Vessels;

 

(e)                           Off hire days for each Pool Vessel monthly and year to date;

 

9.5                                      The Pool Accounts will be maintained in United States Dollars

 

9.6                                      Messrs Moore Stephens or other major international accounting firm, on an annual basis, will audit the Pool’s books, including distributions.  Audited reports will be distributed to all Pool Participants.  All Pool records are available for review by each Pool Participant at the offices of the Manager.

 

9.7                                      At the request of the Participant the Company shall make available to an auditor nominated by the Participant all accounts and supporting documents required to verify the correct distribution of revenues to the Participant

 

10                                         WORKING CAPITAL CONTRIBUTION AND RETENTION

 

10.1                               The Participant shall, upon delivery of the Vessel under the Time Charter Party deposit in the Company’s account a working capital for the Vessel.  The working capital shall be determined by the Company and shall be $750,000, being the equivalent of the market value of one (1) month of average bunker consumption for the Vessel together with the estimated costs and disbursements associated with three (3) port calls. Where there are bunkers on board the Vessel on delivery of the Vessel by the Participant to the Company, the value of the bunkers (based on last prices paid by the Participant on a first-in, first-out basis as evidenced by supporting invoices and bunker delivery receipts) shall be set-off against the working capital to be paid by the Participant to the Company.

 

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Such working capital shall be repaid to the Participant after the termination of the Vessel’s participation in the Pool.  An amount sufficient to cover possible reduced distribution to the Participant following adjustments of the provisional distribution of time charter hire shall nevertheless be withheld until final accounts are available. Where there are bunkers on board the Vessel on redelivery of the Vessel by the Company to the Participant, the value of the bunkers (based on last prices paid by the Company on a first-in, first-out basis as evidenced by supporting invoices and bunker delivery receipts) shall be set-off against the working capital to be repaid by the Company to the Participant.

 

10.2                               In the event that the cashflow position of the Company, as determined by the Manager and the Pool Committee, is insufficient to allow the Company to perform its commercial commitments, then the Pool Committee shall be entitled to recommend a further contribution to the working capital of the Company.  The Participant shall contribute such further contribution to the Company within ten (10) days of receipt of the Pool Committee’s written recommendation, which contribution shall be refunded as soon as the Company’s financial resources permit as determined by the Manager.

 

11                                         POOL COMMITTEE

 

11.1                               The Pool Committee shall consist of one (1) representative for each Pool Participant, two (2) representatives appointed by the Company and two (2) representatives of the Manager.  The two (2) representatives of the Manager shall not have the right to vote.

 

11.2                               Each voting Pool Participant shall have a number of votes corresponding to the number of Pool Vessels controlled by such Pool Participant.

 

11.3                               Members of the Pool Committee are elected for a one (1) year period.  If a member of the Pool Committee is a representative of a Pool Participant who no longer has a Pool Vessel in the Pool, such member shall automatically cease to be a member of the Pool Committee.

 

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11.4                               The Pool Committee shall have the authority to make decisions in respect of the following matters as well as in respect of other matters put before by the Company:

 

(a)                          approval of the basis for the calculation of Total Costs;

 

(b)                          require further contributions to the working capital of the Company in accordance with Clause 10.2;

 

11.5                               The Pool Committee shall meet at least once a year.  The Pool Committee meeting can take place by teleconference as well as by physical meetings.  Representatives to the Pool Committee shall be entitled to participate through proxies.

 

11.6                               All decisions requiring the approval of the Pool Committee shall be taken on the basis of a simple majority of votes casted (excluding abstentions).

 

12                                         CALCULATION OF POOL NET REVENUE/LOSS; POOL GROSS REVENUE AND POOL EXPENSES

 

12.1                               The Net Pool Revenue shall be equal to the Gross Pool Revenue (as detailed in Clause 12.2) less the Pool Expenses (as detailed in Clause 12.3) and subject to the adjustments described in Clause 12.4.

 

12.2                               The Gross Pool Revenues consist of:

 

(a)                          each Pool Vessel’s total voyage income (including without limitation freight, deadfreight and demurrage);

 

(b)                          all freight, deadfreight, demurrage, charter hire or any other amount received for the Pool Vessels fixed on charters and any loss of hire insurance proceeds paid in respect of any of the Pool Vessels;

 

(c)                           all freight, deadfreight, demurrage, charter hire or any other amount received by the Company in respect of Third Party Vessels;

 

(d)                          currency exchange gains;

 

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(e)                           interest earned on funds held in the Company’s bank accounts or otherwise arising from the commercial operation of the Pool Vessels;

 

(f)                            any damages or other amounts received in settlement of any claims relating to performance of any contracts of employment by Pool Vessels or vessels chartered in;

 

(g)                           any voyage expenses related rebates;

 

(h)                          any savings or rebates;

 

(i)                              Pool’s share of any salvage money.

 

12.3                               The Pool Expenses consist of:

 

(a)                          each Pool Vessel’s total voyage expenses, including, without limitation, agents, tugs, port expenses, wharfage, bunker, canal fees, voyage related COFR expenses, additional war risk premium etc;

 

(b)                          all freight, deadfreight, demurrage, charter hire or any other amount paid by the Company under or in respect of Third Party Charters;

 

(c)                           all commissions or brokerage payable in respect of all fixtures, charter parties and contracts of affreightment concluded on behalf of the Company;

 

(d)                          all legal fees and any other out of pocket expenses whatsoever incurred by the Pool, the Company and the Manager in connection with the commercial operation and management of the Pool;

 

(e)                           all fees, costs and expenses whatsoever incurred by the Pool and/or the Company, and/or by the Manager on behalf of the Pool and/or the Company, including, but not limited to, fees and expenses of independent consultants, professional advisors and representatives, supercargo, port captains, surveyors, superintendents or other specialists, whom the Manager may deem desirable to

 

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be employed from time to time in connection with the commercial operation of the Pool;

 

(f)                            any insurance premium payable by the Company in accordance with the provisions of Clause 13;

 

(g)                           all payments made by the Company pursuant to Clause 13.4 hereof;

 

(h)                          provisions for contingencies in respect of any amount in dispute and/or doubtful in recovery;

 

(i)                              any other expenses and charges whatsoever incurred by the Company and the Manager or in respect of any Pool Vessel or any chartered-in vessel for the Pool’s purposes directly and indirectly to the management, administration and operation of the Pool;

 

(j)                             external auditor’s fees for review of the Company Accounts as provided in his Agreement;

 

(k)                          remuneration payable to the Manager pursuant to Clause 7;

 

(l)                              currency exchange losses;

 

(m)                      interest and bank charges/commissions payable on the Company’s bank accounts.

 

12.4                               The Net Pool Revenues shall be adjusted by the Company to take account of, or make provisions for, the following:

 

(a)                          results of voyages in progress;

 

(b)                          amounts of voyage revenues earned by the Pool Vessels but not yet received;

 

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(c)                           apportionment of prepaid expenses not included in the voyages expenses as detailed hereof and of expenses paid after the relevant accounting period and attributable in whole or in part to such accounting period;

 

(d)                          retention to cover claims in progress;

 

(e)                           adequate provisions for any outstanding or contingent liability or obligation that would be considered (when accrued) as a Pool Expense.

 

12.5                               Any and all taxes and dues on the vessel and on payments to the Participant under this Agreement are to be for the Participant’s account and settled directly by it, save for taxes and dues which are solely in the nature of voyage expenses.

 

12.6                               The Company shall not make any additional payments to the Participant under this Agreement in relation to communication, victualling and entertainment expenses, over and above the distributions payable under Clause 8.

 

13                                         INSURANCE

 

13.1                               The Participant shall maintain P&I cover for the Vessel insured in a manner acceptable to the Company.

 

13.2                               The Company will take out legal defence cover with a defence club acceptable to the Pool Committee.

 

13.3                               The Company shall take out P&I charterer’s liability insurance and such other insurances as it may from time to time consider to be appropriate.

 

13.4                               In the event that the Vessel is required to transit through areas within the Gulf of Aden or the Indian Ocean which are covered by the current Joint War Committee listings (together, the “IOR Risk Areas”) or the Vessel is required to call areas within the Gulf of Guinea in West Africa which are covered by the current Joint War Committee listings (the “WAF Risk Areas” and together with the IOR Risk Areas, the “Risk Areas”) the following provisions shall apply:

 

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(a)                          subject to clause 13.4(j), all Pool Vessels transiting the Gulf of Aden will transit under the first available naval convoy. Vessels remain on hire during waiting time;

 

(b)                          subject to clause 13.4(j), in case the Participant requires the Vessel to transit the Gulf of Aden under a specific naval-led convoy, the Vessel will remain on-hire for  a maximum of 24 hours waiting time.  Thereafter all waiting time to be off-hire and bunkers consumed during such time to be for Participants’ account;

 

(c)                           the Company will arrange for insurance cover for KnR (kidnap and ransom) on behalf of the Participant with a cap of USD 8 million for each transit undertaken by the Vessel through the IOR Risk Areas.  Any additional KnR cover required by the Participant shall be arranged by the Participant, at its cost;

 

(d)                          the Company will arrange for insurance cover for loss of hire on behalf of the Participant for each transit undertaken by the Vessel through the Risk Areas for a maximum ninety (90) day period at a daily rate equal to the average Pool return for the previous calendar month. Any additional loss of hire cover required by the Participant shall be arranged by the Participant, at its cost;

 

(e)                           crew bonuses are reimbursable and will be paid by the Company up to 100% of the crew’s basic wages, per transit for the full crew (including officers), in line with the IBF MOA/ ITF Agreements, for a period limited to the number of days of transit through the IBF High Risk Area and if applicable, the IBF Extended Risk Zone.  Any additional crew bonus paid ex-gratia by the Participant in respect of Risk Areas transits shall be for the Participant’s account;

 

(f)                            the Participant shall take out the Additional war risk cover for the Vessel, and provide necessary invoices and proof of payment to the Company for reimbursement by the Company to the Participant. The Participant shall procure discounts from their war risk underwriters for the fact that kidnap and ransom and loss of hire insurance have been taken out separately and if applicable, to 

 

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take into account the presence of armed or unarmed guards on board the Vessel and other Vessel hardening measures undertaken for the Risk Area transit;

 

(g)                           the Company shall reimburse the Participant towards all or part of the cost of  various anti-piracy vessel hardening materials (being razor wire, personal protection equipment, anti-blast film and sandbags) to be acquired by the  Participant and utilised on the Vessel during the Risk Area transit, up to a limit of US$3,500, subject to the Participant providing necessary invoices and proof of payment. Specifically in respect of razor wires and sandbags only which are subject to wear and tear (“Qualifying Hardening Materials”), the Company shall reimburse the replacement of such items up to the monetary limit advised above in the following circumstances and under the following conditions:

 

(i)                                     after one hundred and eighty (180) days following the last reimbursement of such Qualifying Hardening Materials (the “180 Day Period”) under this clause, in the event the Vessel has undertaken three or more transits through the Risk Area during such 180 Day Period; or

 

(ii)                                  prior to the Vessel undertaking a fourth transit through the Risk Area within a 180 Day Period; or

 

(iii)                               prior to the Vessel undertaking a transit through the Risk Area where more than 180 days has passed since a transit through the Risk Area was undertaken by the Vessel using the Qualifying Hardening Materials currently on board the Vessel.

 

In all the above cases the Company is not obliged to reimburse the cost of such Qualifying Hardening Materials where the Participant has tendered a withdrawal notice at that time under clause 15. The Participant is required to notify the Company of its request for reimbursement under this paragraph reasonably in advance before a transit through the Risk Area.

 

17

 

(h)                          the Participant shall have the option of taking armed guards on the Vessel for Risk Area transits, subject to the conditions set out in clauses 13.4(i) and 13.4(j). If the Participant so wishes to take armed guards, the Company will arrange for the appointment of and pay for the cost of the armed guards on behalf of the Participant as long as such armed guards are ISO 28007 certified by one of the UKAS registered certifying bodies. In the case that the Participant insists on using  a different armed guards service from that of the Company’s preferred provider, then the Company agrees to reimburse the cost of the armed guards but such reimbursement shall be limited to the price that could have been obtained from using the Company’s preferred armed guards service provider and provided that such armed guards are ISO 28007 certified by one of the UKAS registered certifying bodies. The reimbursement of the cost of the Participant’s own armed guards is subject to the Participant providing the necessary invoices and proof of payment. The procurement of armed guards is subject to local laws and regulations and the availability of armed guard service providers in such areas;

 

(i)                              all waiting time and deviation for picking up and dropping off armed guards shall be for the account of the Company provided that the Company receives approval from the Participant for the use of the Company’s preferred armed guards service provider or confirmation of appointment of the Participant’s own choice of other armed guards service provider promptly and in a timely manner so as not to cause delay to the Vessel’s itinerary;

 

(j)                             the conditions for armed guards being taken on the Vessel for a Risk Area transit, are that:

 

(i)                                     if transiting the Gulf of Aden, the Vessel shall not wait for any naval convoy and shall proceed directly or transit with the first available MSCHOA grouped transit or naval convoy, whichever is earlier;

 

18

 

(ii)                                  the Vessel shall adopt a direct route through the Risk Areas, but always keeping a minimum distance of 300 nautical miles away from the East Somalian coast; and

 

(iii)                               it is agreed that no armed guards are required to be taken on board the vessel for any transits going from the southern tip of India to the Arabian Gulf (or vice versa) which hug the Western Indian, Pakistani and Gulf of Oman coastlines.

 

Any waiting time or deviation in contravention of the conditions for the taking of armed guards set out in this paragraph (j) shall be off-hire and for the Participant’s account;

 

(k)                          it is further agreed that the Participant / Vessel will follow and implement the latest edition of BMP when in or transiting the Risk Areas;

 

(l)                              other than as set out in the above paragraphs of this clause 13.4, the Company will not cover for any other security or additional insurance measures adopted by the Participants; and

 

(m)                      the above provisions of this clause 13.4 are based on the current situation in the Gulf of Aden, the Indian Ocean and the Gulf of Guinea, and this will be subject to review as and when the situation changes.

 

13.5                               If the Vessel is seized by pirates and the Vessel remains detained after ninety (90) days, the Vessel shall be off-hired under this Agreement from the ninety-first (91st) day after the seizure and subject to clause 15.2, shall be put on-hire again once the Vessel is released and is made available to the Company in the same position as when the Vessel was seized.

 

13.6                               If additional war risk premium and crew bonus is paid out by the Participant in connection with an employment contract undertaken by the Vessel then subject to the other terms of this Agreement and the Time Charter Party, the Company will 

 

19

 

reimburse the Participant for the additional war risk premium and crew bonus at the next due pool distribution date, provided all relevant requirements in the Time Charter Party have been complied with and all relevant invoices and other requested documents have been submitted in good time by the Participant. However such reimbursement shall be done on the basis that the Company reserves its rights to reverse the reimbursement should the costs of the additional war risk premium and crew bonus be disputed and/or rejected by the sub-charterers under the relevant employment contract pursuant to which such costs were incurred.

 

13.7                               Should any dispute arise as to the quality of the bunkers supplied under the Time Charter Party (such to be time-barred unless notified by the Participant to the Company within 15 days of supply) then the Participant and the Company are to agree to a joint re-analysis of a representative sample, which has been witnessed and signed by the bunkering ship or barge representative, at a laboratory acceptable to the Participant and the Company. The sample for testing shall be the sample which has its seal number endorsed on the Bunker Delivery Receipt. The result of this analysis will be final and binding on all parties. The Participant will arrange to have the delivered fuel tested by an internationally recognized fuel testing laboratory such as DNV or similar.

 

14                                         ASSIGNMENT OF EARNINGS

 

14.1                               The earnings of the Pool may not be assigned by the Participant. The Participant may only assign the earnings distributed by the Pool pertaining to the Vessel.

 

15                                         WITHDRAWAL/TERMINATION

 

15.1                               The Vessel shall remain in the Pool for a minimum period of twelve (12) months from the date of delivery under the Time Charter Party subject only to the terms of this Clause.  The Participant and the Company shall be entitled to withdraw the Vessel from the Pool and terminate this Agreement by giving ninety (90) days’ notice, plus or minus thirty (30) days in the Company’s option, in writing to the other at any time after the expiry of the initial nine (9) month period that the Vessel is in the Pool provided 

 

20

 

always that the Participant shall not be entitled to withdraw the Vessel from the Pool and terminate this Agreement until any contract entered into by the Company in respect of the Vessel (other than the Time Charter Party) has been fulfilled.  In such circumstances the termination notice shall take effect as expiring upon fulfilment of such contractual obligations.

 

15.2                               The Company may terminate this Agreement and the Vessel’s participation in the Pool with immediate effect by notice in writing to the Participant if any one of the following situations has arisen:

 

(a)                          the Vessel has been off-hire for periods totalling more than thirty (30) days over the last six (6) months;

 

(b)                          the Vessel’s or Participant’s performance of its tasks under the contract for which it has been used or its application or non-application of standard industry practices is, in the reasonable opinion of the Company, below the standard required (i) to maintain the reputation of the Pool/Company or (ii) to enable the Company to perform the contractual obligations towards the customers of the Pool/Company and to do so in an adequate and economic manner;

 

(c)                           the Vessel is, in the reasonable opinion of the Company, commercially untradeable to a significant proportion of the oil major company customers of the Pool/Company for any reason;

 

(d)                          the Participant is in breach with respect to its obligations under this Agreement (including the terms of the Time Charter Party) and the breach is of a nature which, in the reasonable opinion of the Company, warrants a cancellation of this Agreement;

 

(e)                           the Participant is insolvent and/or is subject to debt negotiations, bankruptcy and/or similar proceedings and/or is unable to or admits its inability to pay its debts as they fall due;

 

21

 

(f)                            except where clause 13.4 applies, the Vessel is captured, arrested, detained or confiscated and the Participant has not, within a period of fifteen (15) days in receipt of notification in writing from the Company thereof, remedied such situation;

 

(g)                           if the Participant or any of its Affiliates becomes a Sanctioned Person during the course of this Agreement; and

 

(h)                          if the Vessel is no longer controlled (whether by way of ownership or charter) by the Participant.

 

15.3                               Any termination of this Agreement and withdrawal of the Vessel from the Time Charter Party shall be without prejudice to any and all rights and obligations of the parties hereto attributable to such termination or withdrawal or to any event, circumstance or period, prior to the effective date of such termination or withdrawal or to any rights and obligations which survive such termination or withdrawal in accordance with this Agreement.

 

16                                         NATURE OF THE AGREEMENT

 

16.1                               This Agreement shall not constitute or give rise to any partnership between the Participant and the Company or other Pool Participants.   The Participant shall under no circumstances be responsible for the debt of any other Pool Participant nor (except as specifically provided for in this Agreement) for the debt of the Company.

 

16.2                               The Participant shall have no rights in respect of goodwill or other tangible or intangible assets of the Company apart from what is specifically stipulated in this Agreement.

 

17                                         CONFIDENTIALITY

 

17.1                               This Agreement including all terms, details, conditions, and period is to be kept private and confidential and beyond the reach of any third party, with the exception of the lending banks of the Participant or the Participant’s agents.  The terms and conditions 

 

22

 

of this Agreement are for the sole use of the parties to this Agreement and are not to be copied or used for any other purpose without the express written consent of the Pool.

 

18                                         TOTAL LOSS

 

18.1                               In the event of a total loss or constructive total loss of the Vessel, the Vessel’s participation in the Pool shall be deemed to be terminated at noon on the day of her loss or, should the Vessel be missing, at noon on the day on which she was last heard of.

 

19                                         CHOICE OF LAW AND JURISDICTION

 

19.1                               This Agreement is governed by and shall be interpreted in accordance with English law.

 

19.2                               All disputes arising under or in connection with this Agreement shall be referred to arbitration in London.  The arbitration shall be conducted in accordance with one of the following London Maritime Arbitrators’ Association (“LMAA”) Rules:

 

(a)                          where the amount claimed by the claimants is less than United States Dollars Fifty thousand (US$50,000), excluding interest, the reference shall be to a sole arbitrator and the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure;

 

(b)                          in any case where the LMAA procedures referred to above do not apply, the reference shall be to three arbitrators (one to be appointed by each of the parties and the third by the arbitrators so chosen) in accordance with the LMAA terms in force at the relevant time.

 

19.3                               In respect of clause 19.2(b), if either of the appointed arbitrators refuses to act or is incapable of acting, the party who appointed him shall appoint a new arbitrator in his place. If one party fails to appoint an arbitrator, whether originally or by substitution for two weeks after the other party, having appointed his arbitrator, has (by email, fax or letter) called upon the defaulting party to make the appointment, the President for 

 

23

 

the time being of the London Maritime Arbitrators’ Association shall, upon application of the other party, appoint an arbitrator on behalf of the defaulting party and that arbitrator shall have the like powers to act in the reference and make an award (and, if the case so requires, the like duty in relation to the appointment of a third arbitrator) as if he had appointed in accordance with the terms of this Agreement.

 

20                                         NOTICES

 

20.1                               Notices or other communications under or with respect to this Agreement shall be in writing and shall be delivered personally or shall be sent by mail, telefax or email to the parties at their respective addresses set forth below or to such other address as to which notice is given:

 

To the Participant:

GMR Strength LLC

80 Broad Street,

Monrovia, Liberia

Attn to: Sean Bradley

Telefax: +1 212 763 5603

Email: chartering@gener8mgmt.com

 

To the Company:

 

V8 Pool Inc.

Trust Company Complex, Ajeltake Road,

Ajeltake Island, Majuro, Marshall Islands MH 96960

Attn to: Jason Klopfer

Telefax: +44 (0)20 7467 5867

Email: notices@navig8group.com

 

Pool withdrawal notices should also be emailed to: ops@navig8group.com

 

Notice shall be deemed given upon sending except for notice by mail which shall be deemed given upon receipt.

 

21                                         ENTIRE AGREEMENT

 

21.1                               This Agreement constitutes the entire agreement and understanding of the parties and supersedes any previous agreement between the parties relating to the subject matter of 

 

24

 

this Agreement.  Each of the parties acknowledges and agrees that in entering into this Agreement it does not rely on any pre-contractual representation and/or statement whether in writing or in words.

 

21.2                               This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such separate counterparts shall together constitute one and the same instrument.

 

22                                         RIGHTS OF THIRD PARTIES

 

22.1                               Save as expressly provided in this Agreement, no terms of this Agreement shall be enforceable by a third party, being any person other than the parties hereto and their permitted successors and assignees.  The provisions of the Contracts (Rights of Third Parties) Act 1999 shall accordingly not apply to this Agreement.

 

25

 

IN WITNESS the Parties hereto have executed this Agreement the day and year first above written.

 

 

	
SIGNED by
    	
)
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
on behalf of GMR   STRENGTH LLC
    	
)
    	
/s/ Dean Scaglione
    	
 
    	
Dean Scaglione
    
	
 
    	
 
    	
 
    	
 
    	
Manager
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
on behalf of V8 POOL   INC
    	
)
    	
/s/ Daniel Chu
    	
 
    	
Daniel Chu
    
	
 
    	
 
    	
 
    	
 
    	
Director
    

 

26

 

APPENDIX 1

 

POOL VESSEL EVALUATION SYSTEM

 

27

 

V8 Pool — Vessel Evaluation Process - 2015

 

APPENDIX 1: V8 POOL - VESSEL EVALUATION SYSTEM [VES] 2015

 

The evaluation of vessels entering the V8 Pool consists of 3 parts:

 

The 1st part uses the vessels’ speed and consumption figures in order to calculate their Daily Bunker Cost basis the Pool’s weighting of the time a vessel spends in Ballast / Laden / Load / Discharge / Idle conditions.

 

The Daily HFO and MGO Consumptions for each vessel are calculated for the respective conditions basis:

 

1.     The individual weightings of the operating conditions of the vessels, which are:

 

	
Ballast
    	
 
    	
Laden
    	
 
    	
Load
    	
 
    	
Discharge
    	
 
    	
Idle
    	
 
    
	
18
    	
%
    	
35
    	
%
    	
6
    	
%
    	
6
    	
%
    	
35
    	
%
    

 

2.              A Pool Reference Speed of 12.50kn in Ballast and 12.50kn in Laden, which will provide for the distance that each vessel will be evaluated on over a 24hr period.

 

Basis the above figures, the vessels will be evaluated on 300 nm in Ballast and 300 nm in Laden condition.

 

3.              Bunker Prices of $535 per mt for HFO and $735 per mt for MGO

 

·                  Bunker Prices will be determined basis the average of the bunker prices for the ports of Rotterdam and Singapore as published by Platts.

·                  The average bunker price for the IFO380 fuel type will also be adjusted basis the SECA area percentage of MGO usage.

·                  On a provisional basis, the Bunker Prices for each port will be based on the average of the last 6 months of spot prices and 6 months of forward prices.

·                  The provisional Bunker Prices will be reviewed every 6 months just prior to 1st January and 1st July of each year and will be applicable for the following 6 month period. The 1st July provisional Bunker Prices will be informed to all Pool Participants.

·                  In addition, at the end of each 6 month period, the Pool will finalise the Bunker Prices for that period by inputting the actual average spot bunker prices for Singapore and Rotterdam during that period into the above calculation method. Each Vessel’s Total Cost for that prior 6 month period will therefore be adjusted retrospectively.

·                  The calculation method for the provisional Bunker Prices for the 1st Half of 2015 is as follows:

 

	
 
    	
 
    	
Singapore
    	
 
    	
Rotterdam
    	
 
    
	
Period
    	
 
    	
IFO380
    	
 
    	
MGO
    	
 
    	
IFO380
    	
 
    	
MGO
    	
 
    
	
6M Spot
    	
 
    	
562
    	
 
    	
844
    	
 
    	
530
    	
 
    	
802
    	
 
    
	
6M Fwd
    	
 
    	
401
    	
 
    	
643
    	
 
    	
373
    	
 
    	
649
    	
 
    
	
Average
    	
 
    	
482
    	
 
    	
743
    	
 
    	
452
    	
 
    	
725
    	
 
    

 

	
V8 POOL
    	
 
    	
IFO380*
    	
 
    	
MGO
    	
 
    
	
SECA*
    	
25
    	
%
    	
535
    	
 
    	
735
    	
 
    
							

 

Period from Jun14 to Nov14

Period from Dec14 to May15

 

 

1

 

4.     The Total Daily Cost for each vessel will be calculated basis the below formula:

 

Bunker Consumptions for Ballast/Laden:

 

Distance / Vessel’s Speed / 24 x Vessel’s Consumption x Bunker Prices x Weighting

 

PLUS

 

Bunker Consumptions for Load / Discharge / Idle:

 

Vessel’s Consumption x Bunker Prices x Weighting

 

The 2nd part of the evaluation takes into account the Rewards and Penalties’ Adjustments applied to each of the vessels based on their individual Physical and Trading characteristics.

 

By using the percentages as they are set out in the Penalties/Rewards Table, we calculate the TCE Adjustments that apply to each vessel on a USD$ per day basis each month’s Average Pool’s Daily TCE.

 

The 3rd part uses the vessel’s Daily Bunker Cost and TCE Adjustments to calculate the Total Cost of each vessel.

 

1.              The Total Cost of each vessel is equal to the Daily Bunker Cost minus the TCE Adjustments.

 

2.              Each of the pool vessels’ Total Cost is compared against the Pool’s Average Cost.

 

3.              The Pool’s Average Cost is the weighted average of all the participating pool vessels’ Total Cost basis the Trading Days each vessel has during the month.

 

Any references to “Pool Earning Points” or “Initial Pool Points” in the Pool Agreement shall be interpreted as references to the Vessel’s Total Cost or where applicable, the Vessel’s provisional Total Cost.

 

2

 

REVENUE ALLOCATION FORMULA

 

The formula used for Allocating Revenues in the Pool Distribution Module is as follows:

 

Pool’s Average Cost – Vessel’s Total Cost = Vessel’s Margin

Vessel’s Margin + Pool’s Average TCE = Vessel’s Distributable Income ($/Day)

The following table shows an example of a monthly distribution:

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(3)
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
TRADING DAYS
    	
 
    	
NET INCOME
    	
 
    	
TCE $/DAY
    	
 
    	
DISTR. TCE $/DAY
    	
 
    
	
VESSEL
    	
 
    	
VSL MARGIN
    	
 
    	
155.00
    	
 
    	
$3,100,000
    	
 
    	
20,000 (*)
    	
 
    	
$20,000
    	
 
    
	
Vessel   #1
    	
 
    	
-500.00
    	
 
    	
31.00
    	
 
    	
$
    	
573,500
    	
 
    	
$
    	
18,500
    	
 
    	
$
    	
19,500
    	
 
    
	
Vessel   #2
    	
 
    	
0.00
    	
 
    	
31.00
    	
 
    	
$
    	
612,250
    	
 
    	
$
    	
19,750
    	
 
    	
$
    	
20,000
    	
 
    
	
Vessel   #3
    	
 
    	
500.00
    	
 
    	
31.00
    	
 
    	
$
    	
635,500
    	
 
    	
$
    	
20,500
    	
 
    	
$
    	
20,500
    	
 
    
	
Vessel   #4
    	
 
    	
800.00
    	
 
    	
31.00
    	
 
    	
$
    	
612,250
    	
 
    	
$
    	
19,750
    	
 
    	
$
    	
20,800
    	
 
    
	
Vessel   #5
    	
 
    	
-800.00
    	
 
    	
31.00
    	
 
    	
$
    	
666,500
    	
 
    	
$
    	
21,500
    	
 
    	
$
    	
19,200
    	
 
    

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(2)
    	
 
    
	
VESSEL
    	
 
    	
DAILY COST
    	
 
    	
TTL ADJ. (%)
    	
 
    	
TTL ADJ. ($)
    	
 
    	
TOTAL COST
    	
 
    	
VSL MARGIN
    	
 
    
	
Vessel   #1
    	
 
    	
13,500.00
    	
 
    	
2.50
    	
%
    	
500.00
    	
 
    	
13,000.00
    	
 
    	
-500.00
    	
 
    
	
Vessel   #2
    	
 
    	
12,500.00
    	
 
    	
0.00
    	
%
    	
0.00
    	
 
    	
12,500.00
    	
 
    	
0.00
    	
 
    
	
Vessel   #3
    	
 
    	
13,000.00
    	
 
    	
5.00
    	
%
    	
1,000.00
    	
 
    	
12,000.00
    	
 
    	
500.00
    	
 
    
	
Vessel   #4
    	
 
    	
12,000.00
    	
 
    	
1.50
    	
%
    	
300.00
    	
 
    	
11,700.00
    	
 
    	
800.00
    	
 
    
	
Vessel   #5
    	
 
    	
13,000.00
    	
 
    	
-1.50
    	
%
    	
-300.00
    	
 
    	
13,300.00
    	
 
    	
-800.00
    	
 
    

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(1)
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
POOL AVG. TOTAL COST
    	
 
    	
12,500.00
    	
 
    	
 
    	
 
    

 

(1) Pool Avg. Total Cost = Weighted average of Vessel’s Total Cost and Trading Days

(2) VSL Margin = Pool’s Average Cost – Vessel’s Total Cost

(3) Vessel’s Distr. TCE ($/Day) = VSL Margin + Pool’s Average TCE (*)

 

3

 

PENALTIES/REWARDS TABLE

 

	
DWT
    	
 
    	
 
    	
 
    
	
BETWEEN 103,000   - 110,000 MT
    	
 
    	
0.0
    	
%
    
	
BELOW 103,000 MT
    	
 
    	
-5.0
    	
%
    
	
ABOVE 110,000 MT
    	
 
    	
3.5
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
CUBIC   CAPACITY 98% (INCL. SLOP TANKS)
    	
 
    	
 
    	
 
    
	
BETWEEN 110,000   - 120,000 CBM
    	
 
    	
0.0
    	
%
    
	
BELOW 110,000   CBM
    	
 
    	
-5.0
    	
%
    
	
ABOVE 120,000   CBM
    	
 
    	
1.5
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
TRADING   AREAS
    	
 
    	
 
    	
 
    
	
WWIDE WITHIN   IWL/ITF AND USUAL EXCLUSIONS
    	
 
    	
0.0
    	
%
    
	
NO WEST AFRICA
    	
 
    	
-5.0
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
OIL MAJOR   APPROVALS
    	
 
    	
 
    	
 
    
	
3 OR MORE OIL   MAJOR APPROVALS
    	
 
    	
0.0
    	
%
    
	
BELOW 3   APPROVALS
    	
 
    	
-10.0
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
AGE
    	
 
    	
 
    	
 
    
	
BELOW 15 YEARS   OF AGE
    	
 
    	
0.0
    	
%
    
	
OVER 15 YEARS OF   AGE
    	
 
    	
-10.0
    	
%
    

 

In order to convert the above percentages into monetary value, they should be multiplied with the Pool’s Average TCE $/Day for the relevant month.

 

REVENUES FROM ICE VESSELS TRADING WITHIN ICE AREAS

 

Ice vessels that earn additional income when fixed to operate within ice areas may be further rewarded against the rest of the vessels in the pool. If a vessel’s TCE is higher than the Pool’s TCE average for that month, then the vessel will receive 70% of the above difference while the remaining 30% will be included in the Distributable Pool Revenues. The above formula applies only for the period that the vessel operated in ice.

 

4

 

POOL PERFORMANCE REVIEWS PARAMETERS

 

In order to determine the eligible data for carrying out the Performance Reviews of the vessels as described in clauses 4.3 and 4.4 in the Pool Agreement the following parameters will apply:

 

·                  Up to and including Beaufort Scale 5 (As provided by FleetWeather)

·                  Up to and including Douglas Sea Scale 5 (As provided by FleetWeather)

·                  Ocean Currents (As provided by FleetWeather)

·                  Between 0.5 knots against the vessel (-0.5) and 0.5 knots in favour of the vessel (+0.5)

·                  Minimum length of a qualifying passage to be 48 hours

·                  Minimum amount of qualifying data from any qualifying passage to be 24 hours

·                  Instructed Speed Ranges of:

 

	
 
    	
 
    	
Ballast (kts)
    	
 
    	
Laden (kts)
    	
 
    
	
V8 Pool
    	
 
    	
12.00
    	
 
    	
13.50
    	
 
    	
12.00
    	
 
    	
13.50
    	
 
    
										

 

Note: The Instructed Speed Ranges will be reviewed on an annual basis to reflect market conditions

 

In addition, performance days under the following conditions will be excluded from the eligible data:

 

·                  Manoeuvring operations

·                  Following Convoys

·                  Timed Arrivals

·                  Search & Rescue operations

 

Definitions

 

·                  Ocean Currents

 

·                  FleetWeather obtains our ocean current data from a high resolution, declassified ocean current model called HYCOM (https://hycom.org). Although we take into consideration any ocean current reports from the Master, the ‘Current Factor’ information within the performance reports is derived from complex trigonometric algorithms that incorporate the course of the vessel and the impact angles of the ocean currents over a given segment distance (noon report to noon report for example). The ‘Current Factor’ will either have a positive or negative effect on the performance speed of the ship.

 

5

 

APPENDIX 2

 

COMMERCIAL MANAGEMENT AGREEMENT

 

28

 

APPENDIX 2

 

NAVIG8 ASIA PTE. LTD.

 

as The Manager

 

and

 

V8 POOL INC.

 

as The Company

 

 

COMMERCIAL MANAGEMENT AGREEMENT

 

 

 

CONTENTS

 

	
CLAUSE
    	
 
    	
PAGE
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.
    	
 
    	
DEFINITIONS
    	
 
    	
6
    	
 
    
	
2.
    	
 
    	
APPOINTMENT
    	
 
    	
6
    	
 
    
	
3.
    	
 
    	
BASIS OF AGREEMENT
    	
 
    	
6
    	
 
    
	
4.
    	
 
    	
COMMERCIAL MANAGEMENT
    	
 
    	
7
    	
 
    
	
5.
    	
 
    	
COMMISSION
    	
 
    	
8
    	
 
    
	
6.
    	
 
    	
ACCOUNTS
    	
 
    	
8
    	
 
    
	
7.
    	
 
    	
COMPANY’S UNDERTAKINGS
    	
 
    	
8
    	
 
    
	
8.
    	
 
    	
LIABILITY
    	
 
    	
9
    	
 
    
	
9.
    	
 
    	
TERMINATION
    	
 
    	
10
    	
 
    
	
10.
    	
 
    	
GENERAL
    	
 
    	
11
    	
 
    
	
11.
    	
 
    	
CONFIDENTIALITY
    	
 
    	
11
    	
 
    
	
12.
    	
 
    	
NOTICES
    	
 
    	
11
    	
 
    
	
13.
    	
 
    	
LAW AND JURISDICTION
    	
 
    	
12
    	
 
    

 

 

THIS AGREEMENT is dated 1st September 2009, amended on 1st February 2012 and amended and restated on 5th September 2014 and is made between:

 

(1)                                 NAVIG8 ASIA PTE. LTD. with its registered office at Three Temasek Avenue, #25-01 Centennial Tower, Singapore 039190 (“the Manager”); and

 

(2)                                 V8 POOL INC with its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH 96960 (“the Company”),

 

(each a “Party” and, together, the “Parties”).

 

WHEREAS

 

(A)                               The Company operates; (i) a pool of Aframax tankers (the “V8 Pool”); (ii) a pool of LR2 tankers (the “Alpha8 Pool”); and (iii) a pool of Suezmax tankers (the “Suez8 Pool”, each a “Pool”, together the “Pools”); and

 

(B)                               The Company does not itself have the personnel required to perform the various tasks involved in the operation of the Pools; and

 

(C)                               The Manager has the necessary personnel and other resources to undertake the management of the commercial affairs of the Pools, including preparing accounts for the Pools and the Company, and the Company wishes to appoint the Manager as the commercial manager of the Vessels in accordance with the terms of this Agreement.

 

THEREFORE IT IS AGREED AS FOLLOWS

 

1              DEFINITIONS

 

In this Agreement

 

“Affiliate” means any entity that directly or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with a Party, “control” being at least 50% (fifty percent) ownership.

 

“Business Day” means days on which banks are open for business and not authorised to close in Singapore, London and New York.

 

“Management Services” means the services provided by the Manager to the Company pursuant to Clause 4.1 of this Agreement.

 

“Vessels” means any vessels operated by the Company on a chartered in and/or chartered out basis, and/or, all of which are subject to this Agreement and “Vessel” means any of them.

 

2              APPOINTMENT

 

2.1                               With effect from the date hereof and continuing unless and until terminated as provided herein, the Company hereby appoints the Manager as its exclusive provider of Management Services and the Manager hereby accepts such appointment.

 

3              BASIS OF AGREEMENT

 

3.1                               Subject to the terms and conditions of this Agreement, during the period of this Agreement, the Manager shall carry out the Management Services in respect of any Vessel as agents for and on behalf of the Company.

 

 

3.2                               The Manager shall have authority to take such actions as it may from time to time in its absolute discretion consider to be necessary to enable it to perform its obligations under this Agreement in accordance with sound commercial management and/or brokerage practice for vessels similar to the Vessels and the market in which the Vessels operate or will operate.

 

3.3                               The Company agrees that the Manager shall not be restricted from carrying on or being concerned or interested in other enterprises either for its own account or on behalf of parties for whom it may be acting as commercial manager, charter broker or otherwise.

 

4              COMMERCIAL MANAGEMENT

 

4.1                               In consideration of the Management Services Commission payable by the Company to the Manager pursuant to Clause 5 below, the Manager shall provide the commercial operation of the Vessels, as required by the Company, which includes, but is not limited to, the following functions:

 

(a)                                 providing marketing services on behalf of the Company in respect of the Vessels, including, but not limited to, seeking, negotiating and concluding time charters no longer than thirteen (13) months, voyage charters and/or contracts of affreightment in respect of the Vessels;

 

(b)                                 arranging for the proper payment to the Company or its nominee of all hire and/or freight revenues or other monies of whatsoever nature to which the Company may be entitled arising out of or otherwise in connection with the Vessels. For the avoidance of doubt in the receipt and handling of any funds of the Company, the Manager shall have fiduciary responsibilities with respect thereto in accordance with normal vessel agency practices and applicable law. Any discounts or rebates that are, or become, available are to be credited to the Company;

 

(c)                                  providing voyage estimates and accounts and calculating hire, freights, demurrage and/or despatch monies due from or due to the charterers of the Vessels;

 

(d)                                 issuing of voyage instructions, supervising and arranging bunkering, monitoring of voyage performance, speed and use of weather routing services, if deemed necessary by the Manager;

 

(e)                                  to approve letters of indemnity (“LOI”) provided that such LOIs are in conformity with the charterparties entered into between the Company and each of the Pool Participants;

 

(f)                                   arranging the scheduling of the Vessels according to the terms of the Vessels’ employment;

 

(g)                                  appointing agents and negotiating tug-boat service contracts;

 

(h)                                 appointing stevedores;

 

(i)                                     arranging surveys associated with the commercial operation of the Vessels;

 

(j)                                    maintaining such documents, records, accounts, statements and supporting vouchers (if any), obtained in connection with the Management Services (all of which documents, records, accounts, statements and supporting vouchers (if any) are and will remain the sole property of the Manager) and making them available to the Company upon request, including, but not limited to, any of the foregoing which the Manager deems necessary or advisable in order to comply with any charter or other contract in effect with respect to the Vessels from time to time; and

 

4.2                               To submit all necessary financial, accounting and business reports to the Company so as to enable the Company to comply with its reporting obligations to the Pool Participants in accordance with the terms of the Pool Participation Agreements entered into between the Company and the Pool

 

 

Participants. The Manager expressly acknowledges that it has seen copies of such Pool Participation Agreements and has full notice of such obligations.

 

4.3                               In the performance of its obligations under this Agreement, the Manager shall only be required to spend the amount of time and attention on the Vessels that a commercial manager would reasonably be expected to spend in the proper discharge of its obligations under this Agreement.

 

5              COMMISSION

 

5.1          The Company shall pay to the Manager a commission fee equal to:

 

(a)                       two per cent (2.0%), in relation to the Vessels in the V8 Pool and the Alpha8 Pool; or

 

(b)                       one point two five (1.25%), in relation to the Vessels in the Suezmax8 Pool,

 

of all hire, demurrage, freights, any freight accessories and miscellaneous revenues arising from or in connection with the employment or operation of the Vessels during the term of this Agreement (apart from the time charters which form part of the Pool Participation Agreement entered into between the Company and the Pool Participants) (the “Management Services Commission”).

 

5.2                               The Management Services Commission shall be payable by the Company to the Manager on the dates when such hire, demurrage, freights, freight accessories or miscellaneous revenues (as the case may be) is due to be paid.

 

5.3                               The Company shall pay an administration fee equal to:

 

(a)                       two hundred and fifty dollars ($250) per day per Vessel in the V8 Pool and the Alpha8 Pool; or

 

(b)                       three hundred and twenty five dollars ($325) per day per Vessel in the Suezmax8 Pool,

 

during the term of this Agreement and such administration fee shall be payable on a monthly basis in arrears at the end of the first week of each month.

 

5.4                               The Company hereby authorises the Manager to deduct the Management Services Commission from any amounts received by the Commercial Manager arising from or in connection with the employment or operation of the Vessels.

 

5.5                               The Parties agree that any Management Services Commission payable by the Company to the Manager in accordance with this Agreement shall remain payable for the duration of any underlying charterparty, contract of affreightment or fixture of a Vessel notwithstanding the termination of this Agreement for any reason whatsoever prior to the expiry of such charterparty, contract of affreightment or fixture.

 

6              ACCOUNTS

 

6.1                               The Management Services Commission and all expenses incurred by the Manager in respect of the provision of the Management Services under the terms of this Agreement on behalf of the Company shall in any event remain payable by the Company to the Manager on demand.

 

7              COMPANY’S UNDERTAKINGS

 

7.1          The Company undertakes as follows:

 

(a)                       to indemnify and hold the Manager and/or its appointed agent harmless from all consequences or liabilities in signing bills of lading, issuing letters of indemnity in lieu of bills of lading or changes of destination from bills of lading or other documents relating to the

 

 

relevant charterparty, contract of affreightment or fixture for any Vessel or from any irregularity in documents supplied to the Manager and/or its appointed agent or from complying with orders given to it;

 

(b)                       to immediately notify the Manager of the Company’s decision to re-deliver a Vessel which shall include details of the delivery date, port of delivery or range of ports of delivery, any pre-delivery inspections and any other information which may affect the operations or employment of such Vessel. Following receipt of such notice, the Manager shall not contract to employ that Vessel for periods in excess of the intended delivery date of that Vessel as specified in the Company’s notice to the Manager as aforesaid; and

 

(c)                        the Company shall notify the Manager of any decision made by a Pool Committee.

 

8              LIABILITY

 

8.1          Force Majeure

 

Neither the Company nor the Manager 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.

 

8.2          Liability to Company

 

Without prejudice to Clause 8.1 above, the Manager shall be under no liability whatsoever to the Company 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 a Vessel) and howsoever arising in the course of performance of the Management Services UNLESS the same is proved to have resulted solely from the negligence, gross negligence or wilful default of the Manager or its employees in connection with the Vessel, in which case (save where loss, damage, delay or expense has resulted from the Manager’s 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 Manager’s liability for each incident or series of incidents giving rise to a claim or claims shall never exceed a total of US$250,000 (two hundred and fifty thousand United States Dollars);

 

8.3          Indemnity

 

Except to the extent and solely for the amount therein set out that the Manager would be liable under Clause 9.2 above, the Company hereby undertakes to keep the Manager and their employees, 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 Manager may suffer or incur (either directly or indirectly) in the course of the performance of this Agreement.

 

8.4          “Himalaya”

 

It is hereby expressly agreed that no employee or agent of the Manager shall in any circumstances whatsoever be under any liability whatsoever to the Company 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, even exemption, limitation, condition and liberty herein contained and ever right, exemption from liability, defence and immunity of whatsoever nature applicable to the Manager or to which the Manager is entitled hereunder shall also be available and shall extend to protect every such employee or agent of the Manager acting as aforesaid and for the purpose of all the foregoing provisions of this clause the Manager is or shall be

 

 

deemed to be acting as agent or trustee on behalf of 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.

 

9              TERMINATION

 

9.1          Termination on Notice

 

Either the Manager or the Company may terminate this Agreement by giving ninety (90) days’ written notice to the other.

 

9.2          Manager’s Default

 

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

 

9.3          Company’s Default

 

If the Company fails to pay the Management Services Commission or any other commission or amount due to the Manager in accordance with the terms of this Agreement, the Manager shall give notice of the default in writing and demand that the outstanding amount is paid within fourteen (14) days from the date of such notice. In the event that such outstanding amount is not paid within this time by the Company, the Manager shall be entitled to terminate this Agreement (and its appointment as Manager hereunder) with immediate effect by giving the notice in writing to the Company.

 

9.4          Extraordinary Termination

 

(a)                       Upon the re-delivery of a Vessel or if a Vessel becomes a total loss or is declared as a constructive or compromised or arranged total loss or is requisitioned, this Agreement shall continue in full force and effect in relation to the other Vessel(s) only

 

If, for the reasons contemplated in this clause 9.4(a), only one Vessel remains, then, upon the sale or re-delivery of such Vessel or if such Vessel becomes a total loss or is declared as a constructive or compromised or arranged total loss or is requisitioned, this Agreement shall terminate.

 

(b)                       For the purposes of this Clause 9.4:

 

(i)                                     the date upon which a Vessel is to be treated as having been sold or otherwise disposed of shall be the date on which the Company ceases to be charterer of that Vessel;

 

(ii)                                  a 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, compromised 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 that Vessel has occurred.

 

9.5                               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 a Party suspends payment, ceases to carry on business or make any special arrangement or composition with its creditors.

 

 

9.6                               The termination of this Agreement shall be without prejudice to all rights accrued by and between the Parties under this Agreement prior to the date of such termination, including, but without limitation, the Manager’s rights under Clause 5.1 above.

 

10           GENERAL

 

10.1                        No variation of this Agreement shall be effective unless given in writing and signed by or on behalf of the Parties.

 

10.2                        If any term or provision in this Agreement is held to be illegal or unenforceable, in whole or in part, under any enactment or rule of law, such term or provision or part shall to that extent be deemed not to form part of this Agreement but the enforceability of the remainder of this Agreement shall not be affected.

 

10.3                        Neither this Agreement nor any of the rights, obligations or duties arising under this Agreement may be assigned or transferred by either Party without the prior written consent of the other Party.

 

10.4                        The arrangements contemplated by this Agreement are not intended to and shall not (and shall not be construed so as to) constitute any kind of partnership between the Parties.

 

10.5                        No neglect, delay or indulgence on the part of either Party in enforcing any term of this Agreement will be construed as a waiver of that term and no single or partial exercise by either Party of any rights or remedy under this Agreement will preclude or restrict the further exercise or enforcement of any such right or remedy or any other rights or remedies under this Agreement.

 

10.6                        This Agreement, and the documents referred to in it, shall not form part of the Pool Participation Agreements but shall be exhibited to such Agreements as Appendix 2.

 

10.7                        A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement, but this does not affect any right or remedy of a third party which exists or is available apart from that Act.

 

10.8                        This Agreement can be executed in counterparts, each of which when executed and delivered is an original and all of which together evidence the same agreement.

 

11           CONFIDENTIALITY

 

11.1                        Each Party shall keep, and shall seek to ensure its officers, employees, agents and consultants keep confidential all information gained by it or them during the term of this Agreement concerning the business and affairs of the other Party (and the terms of this Agreement) and will not disclose or use the same for any purpose whatsoever except:

 

(a)                                 as required by any applicable law; and

 

(b)                                 as reasonably required to be disclosed to its professional advisers, including without limitation, its lawyers and auditors.

 

12           NOTICES

 

12.1                        Any notice given under this Agreement shall be in writing and should be delivered personally or sent by first class pre-paid post or by fax to the Parties’ respective addresses set out below in this Agreement or as otherwise notified by them from time to time in accordance with the provisions of this Clause

 

12.2                        The address and fax number (and the person for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered in connect with this Agreement is:

 

 

Navig8 Asia Pte. Ltd.

Three Temasek Avenue

#25-01 Centennial Tower

Singapore 039190

 

	
Fax:
    	
+ 65 66 22 00 99
    
	
Email:
    	
gary@navig8group.com
    
	
Attn:
    	
Gary Brocklesby
    

 

V8 Pool Inc.

Trust Company Complex

Ajeltake Road

Ajeltake Island

Majuro

Marshall Islands

MH 96960

 

	
Fax:
    	
+44 207 467 5867
    
	
Email:
    	
ugo@navig8group.com
    
	
Attn:
    	
Ugo Romano
    

 

In the absence of evidence of earlier receipt, a notice or other communication is deemed given:

 

(a)                       If delivered personally, when left at the address referred to in Clause 13.2 above;

 

(b)                       If sent by post, on the third (3rd) Business Day next following the day of posting it;

 

(c)                        If sent by fax, on completion of its transmission, if transmitted during normal business hours (9.30am – 5.30pm) on any Business Day. A notice given by a fax transmitted after midnight but on or before 9.30am on Business Day shall be deemed to be given at 9.30am on that Business Day and a notice by a fax transmitted after 5.30pm but on or before midnight on any Business Day shall be deemed to be given at 9.30am on the following Business Day.

 

13           LAW AND JURISDICTION

 

13.1                        This Agreement shall be governed by English law and any dispute arising out of or in connection with this Agreement which cannot be settled by mutual agreement of the Parties shall be referred to arbitration in London in accordance with the Arbitration Act 1996 or any statutory modification or re-enactment thereof for the time being in force.

 

13.2                        Save as provided otherwise in this Clause 13, the arbitration shall be conducted in accordance with the London Maritime Arbitrators’ (LMAA) Terms current at the time when the arbitration is commenced.

 

13.3                        The reference will be to a sole arbitrator if the Parties can agree upon the identity of a sole arbitrator within fourteen (14) days following a Party giving notice in writing to the other Party of its intention to commence arbitration proceedings, failing which the reference shall be to three (3) arbitrators.

 

13.4                        In cases where neither the claim nor any counterclaim exceeds the sum of US$50,000 (or such other sum as the parties may agree) the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure current at the time when the arbitration proceedings are commenced.

 

 

IN WITNESS WHEREOF the Parties have entered into this Agreement on the date first written above

 

	
EXECUTED   by the Parties
    	
 
    
	
 
    	
 
    
	
Signed   by
    	
Gary   Brocklesby
    	
 
    	
)
    	
/s/ Gary Brocklesby
    
	
For and on behalf of
    	
)
    
	
NAVIG8   ASIA PTE. LTD.
    	
)
    
	
 
    	
 
    
	
 
    	
 
    
	
Signed by
    	
Daniel Chu
    	
 
    	
)
    	
/s/ Daniel Chu
    
	
For and on behalf of
    	
)
    
	
V8   POOL INC.
    	
)
    

 

 

APPENDIX 3.1

 

STANDARD POOL TIME CHARTER

 

29

 

	
Code word for this   Charter Party
    “SHELLTIME 4”
    	
 
    	
Time Charter Party
    LONDON 11 June 2015
    

 

Issued December 1984

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
IT IS THIS DAY AGREED between GMR   Strength LLC
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
of 80 Broad Street,   Monrovia, Liberia ( hereinafter referred to as “Owners” ), being   owners of the
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
good tanker vessel   called “Genmar Strength” (to be renamed “Gener8   Pericles”)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(hereinafter referred to as “the vessel” ) described as per Clause   1 hereof and V8 POOL INC.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
of  a Marshall Islands   corporation having its registered office at Trust Company Complex, Ajeltake   Road, Ajeltake Island, Majuro, Marshall Islands MH 96960   (hereinafter referred to as “Charterers”):
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Description and
    	
 
    	
1
    	
 
    	
 
    	
 
    	
At the date of delivery of the vessel under this charter
    
	
Condition of
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(a)
    	
 
    	
she shall be classed by Det Norske Veritas
    
	
Vessel
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(b)
    	
 
    	
she shall be in every way fit to carry  crude petroleum   and/or its products;
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Dirty petroleum products, crude oil and all cargoes, maximum three   (3) grades within the vessel’s natural segregation permitted by the   vessel’s class and coating manufacturer’s resistance list.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(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   and radar) 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 (See   additional clause 52)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
at sea - fueloil with a maximum viscosity of Centistokes at 50   degrees Centigrade/any commercial grade of fuel oil (“ACGFO”) for main   propulsion, marine diesel oil/ACGFO for auxiliaries in port - marine diesel   oil/ACGFO for auxiliaries;
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(f)
    	
 
    	
she shall comply with the regulations in force so as to enable   her to pass through the Suez and Panama Canals 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 Form B  Q88 and time charter description appended hereto, provided however   that if there is any conflict between the provisions of  Form B  Q88 and time   charter description and any other provision, including this Clause   1, of this charter such other provision shall govern.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shipboard
    	
 
    	
2
    	
 
    	
(a)
    	
 
    	
At the date of delivery of the vessel under this charter
    
	
Personnel and their Duties
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(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 rained   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, 1978;
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(iv)
    	
 
    	
there shall be on board sufficient personnel with a good working   knowledge of the English language to enable cargo operations at loading and   discharging places to be carried out efficiently and safely and to enable   communications between the vessel and those loading the vessel or accepting   discharge therefrom to be carried out quickly and efficiently.
    
	
 
    	
 
    	
 
    	
 
    	
(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
    	
 
    	
(i)
    	
 
    	
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.
    
	
 
    	
 
    	
 
    	
 
    	
(ii)
    	
 
    	
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   (ii) 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.
    
	
 
    	
 
    	
 
    	
 
    	
(iii)
    	
 
    	
If Owners are in breach of their   obligation under Clause 3(i) 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 Charterer’s reasonable   satisfaction the exercise of due diligence as required in Clause 3(i),   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.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Furthermore, at any time while   the vessel is off-hire under this Clause 3 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 (iii) 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
    	
 
    	
4
    	
 
    	
 
    	
 
    	
Owners agree to let and   Charterers agree to hire the vessel for a period of as per   Pool Agreement commencing from the time and date of delivery of   the vessel, for the purpose of carrying all lawful merchandise (subject   always to Clause 28) including in particular
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Dirty petroleum products, crude oil and all cargoes, maximum three   (3) grades within the vessel’s natural segregation permitted by the   vessel’s class and coating manufacturer’s resistance list.

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.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
The vessel may trade worldwide as Charterers shall direct, subject to   the limits of the current I.W.L between safe ports/berths/anchorages and   always afloat and excluding countries that are at any time boycotted by or   under embargoes from the United Nations and/or European Union and/or United   States and/or the country of the vessel’s registry. For the purpose of   clarity, the vessel shall not trade in areas declared as war risk areas by   the underwriter’s joint war committee except in accordance with clauses 33,   34, 35 and 86 of this Charter.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
The Owners warrants that at the time of delivery under this charter,   the vessel is not blacklisted by the Arab Boycott League.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
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 Owners 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.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
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.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
The vessel shall be delivered by Owners at a port in
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Notices from Owners to Charterers prior to delivery:
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Owners are to give Charterers immediate approximate notice of   delivery on fixing. Following this Owners are to give the Charterers   approximate notices 30, 20, 15 days prior to delivery and then definite   notices of delivery including date and place 10, 7, 5, 3, 2 and 1 day prior   to delivery to the Charterers. Owners are to advise Charterers immediately if   there is any change of more than 24 hours to the approximate notices or 12   hours to the actual notices.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
at   Owners’ option and redelivered to Owners at a port in
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
The vessel will be delivered back to Owners on passing or after   dropping last outbound sea pilot at any worldwide port.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Notices from Charterers to Owners prior to redelivery:
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Charterers are to give Owners approximate notice of redelivery 20, 10   and 7 days prior to redelivery. Charterers to give Owners firm notices of   date and place of redelivery of the vessel 5, 3, 2 and 1 day prior to redelivery.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
at   Charterers’ option.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Laydays/ Cancelling
    	
 
    	
5
    	
 
    	
 
    	
 
    	
The vessel shall not be delivered   to Charterers before 15 June 2015   and Charterers shall have the option of cancelling this charter if the vessel   is not ready and at their disposal on or before 15   August 2015
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Owners to Provide
    	
 
    	
6
    	
 
    	
 
    	
 
    	
Owners undertake to provide and   to pay for all provisions, wages, and shipping and discharging fees and all   other expenses of the master, officers and crew; also, except as provided in Clause   4 and 34 hereof, for all
    

 

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
insurance on the vessel, for all deck, cabin and engine-room   stores, and for water; for all drydocking, overhaul, maintenance and repairs   to the vessel; and for all fumigation expenses and de-rat certificates.   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
    	
 
    	
 
    	
 
    	
Charterers shall provide and pay   for all fuel (except fuel used for domestic services), towage and Pilotage (except where such towage and pilotage are not compulsorily required   by the relevant authorities) and shall pay agency fees, port   charges, commissions, expenses of loading and unloading cargoes, canal dues   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.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Rate of Hire
    	
 
    	
8
    	
 
    	
 
    	
 
    	
Subject as herein provided,   Charterers shall pay for the use and hire of the vessel at the rate of as per Pool Agreement per day, and pro rata for any part   of a day, from the time and date of her delivery (local time) until the time   and date of her redelivery (local time) to Owners.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Payment of Hire
    	
 
    	
9
    	
 
    	
 
    	
 
    	
Subject to Clause 3 (iii), payment of hire shall be made   in immediately available funds to:
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
GMR STRENGTH LLC
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Account Number 7424112001
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Nordea   Bank
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
437 Madison Avenue
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
New York, NY 10022
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
ABA/Routing No: 026010786
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Swift Address: NDEAUS3N
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Account
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
in                                             per   calendar month in advance, less: as per Pool   Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(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 thereon, 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(ii) or 24 hereof, any such adjustments   to be made at the due date 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 Interest   Rate as published by the Chase Manhattan Bank in New York at 12.00 New York   time on the due date, or, if no such interest rate is published on that day,   the interest rate published on the next preceding day on which such a rate   was so published, computed on the basis of a 360 day year of twelve 30-day   months, compounded semi-annually.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Space Available to Charterers
    	
 
    	
10
    	
 
    	
 
    	
 
    	
The whole reach, burthen and   decks of the vessel and any passenger accommodation (including Owner’s 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, provided that the weight of stores on board shall Not   unless specially agreed, exceed 750 mts (excluding   bunkers, fresh water and lubes) tonnes at any time during the   charter period.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Overtime
    	
 
    	
11
    	
 
    	
 
    	
 
    	
Overtime pay of the master, officers and crew in   accordance with ship’s articles shall be for Charterers’ account when   incurred, as a result of complying with the request of Charterers of their   agents, for loading, discharging, heating of cargo, bunkering or tank   cleaning.  Hire is inclusive of overtime.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Instructions And Logs
    	
 
    	
12
    	
 
    	
 
    	
 
    	
Charterers shall from time to   time give the master all requisite instructions and sailing directions, and he   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.
    

 

 

	
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 that shown on the bill of lading and/or
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(ii)
    	
 
    	
without presentation of an original bill of lading unless they   have received from Charterers both written confirmation of such orders and an   indemnity in a form acceptable to Owners.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
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
    	
 
    	
 
    	
 
    	
Charterers shall accept and pay for all bunkers on   board at the time of delivery, and Owners shall on redelivery (whether it   occurs at the end of the charter period or on the earlier termination of this   charter) accept and pay for all bunkers remaining on board, at the   then-current market prices at the port of delivery or redelivery, as the case   may be, or if such prices are not available payment shall be at the   then-current market prices at the nearest port at which such prices are   available; provided that if delivery or redelivery does not take place in a   port payment shall be at the price paid at the vessel’s last port of   bunkering before delivery or redelivery, as the case may be. Owners shall   give Charterers the use and benefit of any fuel contracts they may have in   force from time to time, if so required by Charterers, provided suppliers   agree.  See additional clauses 52 and 53
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
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
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(i)
    	
 
    	
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
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(ii)
    	
 
    	
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.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Supernumeraries
    	
 
    	
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 liquors. Charterers paying at the rate of US$20.00 per day for each representative while on board   the vessel.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sub-letting
    	
 
    	
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
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(i)
    	
 
    	
disbursements on Owners’ behalf or charges for Owners’ account   pursuant to any provision
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
hereof, and
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(ii)
    	
 
    	
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 on the day of her loss; should   the vessel be a constructive total loss, this charter shall terminate and   hire shall cease at noon 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 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.
    
	
 
    	
 
    	
 
    	
 
    	
(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 on 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 charter period.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Periodical   Drydocking
    	
 
    	
22
    	
 
    	
(a)
    	
 
    	
Owners   have the right and obligation to drydock the vessel at regular intervals of

On each occasion Owners shall propose to Charterers   a date on which they wish to drydock the vessel, not less than                      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.

See   additional clause 115
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ship Inspection
    	
 
    	
23
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Charterers shall have the right at any time during the charter   period to make such inspection of the vessel as they may consider necessary.   This right may be exercised as often and at such intervals as Charterers in their   absolute discretion may determine and whether the vessel is in port or on   passage. Owners affording all necessary co-operation and accommodation on   board provided, however,
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(i)    that neither the exercise nor the non-exercise, nor anything   done or not done in the exercise or non-exercise, by Charterers of such right   shall in any way reduce the master’s or Owners’ authority over, or responsibility   to Charterers or third parties for, the vessel and every aspect of her   operation, nor increase Charterers’ responsibilities to Owners or third   parties for the same; and
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(ii)   that Charterers shall not be liable for any act, neglect or   default by themselves, their servants or agents in the exercise or   non-exercise of the aforesaid right.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Detailed
    	
 
    	
24
    	
 
    	
(a)
    	
 
    	
 
    	
 
    	
Owners guarantee that the speed and consumption of the vessel   shall be as follows: -
    
	
Description
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
and Performance
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Average speed
    	
 
    	
Maximum average bunker   consumption
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
In knots
    	
 
    	
main propulsion
    	
 
    	
auxiliaries
    
	
 
    	
 
    	
fuel oil/diesel oil
    	
 
    	
fuel oil/diesel oil
    
	
Laden
    	
 
    	
tonnes
    	
 
    	
tonnes
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ballast
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
The foregoing bunker consumptions   are for all purposes except cargo heating and tank cleaning and shall be   pro-rated between the speeds shown.

The service speed of the vessel   is 12.5 knots laden and 12.5 knots in ballast and in the absence of   Charterers’ orders to the contrary the vessel shall proceed at the service   speed. However if more than one laden and one ballast speed are shown in the   table above Charterers shall have the right to order the vessel to steam at   any speed within the range set out in the table (the “ordered speed”).

If the vessel is ordered to   proceed at any speed other than the highest speed shown in the table, 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 any increase or 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 8 on the Beaufort Scale for more than 12 hours.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
(b)
    	
 
    	
 
    	
 
    	
If during any year from the date on which the vessel enters   service (anniversary to anniversary ) the vessel falls below or exceeds the   performance guaranteed in Clause 24(a) then if such shortfall or   excess 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
													

 

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
results
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(i)  from a reduction   or an increase 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 or gained, as the case may be, shall be deducted from or   added to the hire paid;
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(ii)  from an increase   or a decrease 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 the bunkers saved, as the case may be, based on the average price   paid by Charterers for the vessel’s bunkers in such period, shall be deducted   from or added to the hire paid. The addition to or deduction from hire so   calculated 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 addition or 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 addition to or deduction from hire to be made   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 for the   yearly periods 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 or by Charterers   to Owners as the case may require.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Payments in respect of increase   of hire arising under this Clause shall be made promptly after receipt   by Charterers of all the information necessary to calculate such increase.    
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 

Clause 24 to be amended by and read with additional clauses 51, 54   and 55.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
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. All such claims shall be subject to the Hague-Visby Rules or the   Hague 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. 

 

any claim (whether brought by   Charterers or any other person) arising out of any loss of, or damage to, or   in connection with, the cargo shall be subject to the Hague Visby Rules, or   the Hague Rules, or the Hamburg Rules as the case may be. Such rules which   ought, pursuant to clause 38 (as replaced by additional clause 88) hereof, to   have been incorporated in the relevant Bill of Lading (whether or not such   rules were so incorporated) shall apply, or if no such bill of lading is   issued, the Hague Visby Rules are to apply, unless the Hamburg   Rules are compulsorily in which case the Hamburg Rules are to apply   instead.  
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Also see additional clause 88
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(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
    	
 
    	
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.
    
	
Cargoes
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Grade of Bunkers
    	
 
    	
29
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Charterers   shall supply marine diesel oil/fuel oil with a maximum viscosity of                                   Centistokes at 50 degrees Centigrade/ACGFO for main propulsion and diesel   oil/ACGFO for the auxiliaries. If Owners require the vessel to be supplied   with more expensive bunkers they shall be liable for the extra cost thereof.

                                                Charterers   warrant that all bunkers provided by them in accordance herewith shall be of   a quality complying with the International Marine Bunker Supply Terms and   Conditions of Shell International Trading Company and with its specification   for marine fuels as amended from time to time.  See additional clauses 51 and 52.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
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 percent, 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 government in respect of such   requisition period shall be for Owners’ account. Any such requisition period   shall count as part of the charter period.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Outbreak of War
    	
 
    	
33
    	
 
    	
 
    	
 
    	
 
    	
 
    	
If war or hostilities break out between any two or   more of the following countries: U.S.A., U.S.S.R. Russian Federation, P.R.C., U.K., Netherlands- and the vessel’s flag state both Owners and Charterers   shall have the right to cancel this charter.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
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 as determined by the Joint War Committee Listed Areas,
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Charterers shall reimburse Owners for any additional insurance   premia, crew bonuses for areas designated by   the International Bargaining Forum (IBF) framework agreement 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.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
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 by telex or   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
    	
 
    	
36
    	
 
    	
 
    	
 
    	
 
    	
 
    	
If the liability for any   collision in which the vessel is involved while performing this charter falls   to be determined in accordance with the laws of the United States of America,   the following provision shall apply:
    
	
Collision Clause
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
“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, operations 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 falls 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 the York/Antwerp Rules, 1974 1994 (as   subsequently amended from time to time), and shall be adjusted in   London in accordance with English law and practice but should adjustment be   made in accordance with the law and practice of the United States of America,   the following provision shall apply:
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
“In the event of accident,   danger, damage or disaster before or after the commencement of the voyage,   resulting from any cause whatsoever, whether due to negligence or not, for   which, or for the consequence of which, the 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 clause:

                   “(1) Subject   to sub-clause (2) 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 herein   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   any term of this bill of lading is repugnant to the Hague-Visby Rules, or   Hague Rules if applicable, such term shall be void to that extent but no   further.”

                   “(4) 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.” See   additional clause 88
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TOVALOP
    	
 
    	
39
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Owners   warrant that the vessel is
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(i)      a   tanker in TOVALOP and 

(ii)     properly   entered in                                                     P &   I Club 

and will so remain during the currency of this   charter.

                When   an escape or discharge of Oil occurs from the vessel and causes or threatens   to cause Pollution Damage, or when there is the threat of an escape or   discharge of Oil (i.e. a grave and imminent danger of the escape or discharge   of Oil which, if it occurred, would create a serious danger of Pollution   Damage, whether or not an escape or discharge in fact subsequently occurs),   then Charterers may, at their option, upon notice to Owners or master,   undertake such measures as are reasonably necessary to prevent or minimize   such Pollution Damage or to remove the Threat, unless Owners promptly   undertake the same. Charterers shall keep Owners advised of the nature and   result of any such measures taken by them and, if time permits, the nature of   the measures intended to be taken by them. Any of the aforementioned measures   taken by Charterers shall be deemed taken on Owners’ authority as Owners’   agent, and shall be at Owners’ expense except to the extent that:

(1)     any such escape   or discharge or Threat was caused or contributed to by Charterers, or

(2)     by reason of the   exceptions set out in Article III, paragraph 2, of the 1969   International           Convention on   Civil Liability for Oil Pollution Damage, Owners are or, had the said   Convention applied to such Escape or discharge or to the Threat, would have   been exempt from liability for the same, or 

(3)     the cost of such   measures together with all other liabilities, costs and expenses of Owners   arising out of or in connection with such escape or discharge or Threat   exceeds one hundred and sixty United States Dollars (US $160 ) per ton of the   vessel’s Tonnage or sixteen million eight hundred thousand United States
    

 

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Dollars (US $16,800,000), whichever is the lesser,   save and insofar as Owners shall be entitled to recover such excess under   either the 1971 International Convention on the Establishment of an   International Fund for Compensation for Oil Pollution Damage or under   CRISTAL;

                   PROVIDED   ALWAYS that if Owners in their absolute discretion consider said measures should   be discontinued. Owners shall so notify Charterers and thereafter Charterers   shall have no right to continue said measures under the provisions of this   Clause 39 and all further liability to Charterers under this Clause 39 shall   thereupon cease.

                   The   above provisions are not in derogation of such other rights as Charterers or   Owners may have under this charter or may otherwise have or acquire by law or   any International Convention or TOVALOP.

                   The   term “TOVALOP” means the Tanker Owners’ Voluntary Agreement Concerning   Liability for Oil Pollution dated 7th January 1969, as amended from time   to time, and the term “CRISTAL” means the Contract Regarding an Interim   Supplement to Tanker Liability for Oil Pollution dated 14th   January 1971, as amended from time to time. The terms “Oil”, “Pollution   Damage”, and “Tonnage” shall for the purposes of this Clause 39 have the   meanings ascribed to them in TOVALOP. See additional clause 80(k)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Export
    	
 
    	
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.
    
	
Restrictions
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
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.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Law and Litigation
    	
 
    	
41
    	
 
    	
 
    	
 
    	
(a)
    	
 
    	
This   charter shall be construed and the relations between the parties determined   in accordance with the laws of England.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(b)
    	
 
    	
Any   dispute arising under this charter shall be decided by the English Courts to   whose jurisdiction the parties hereby agree.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(c)
    	
 
    	
Notwithstanding   the foregoing, but without prejudice to any party’s right to arrest or   maintain the arrest of any maritime property, either party may, by giving   written notice of election to the other party, elect to have any such dispute   referred to the arbitration of a single arbitrator in London in accordance   with the provisions of the Arbitration Act 1950, or any statutory   modification or re-enactment thereof for the time being in force.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(i)    A   party shall lose its right to make such an election only if:
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(a)   it   receives from the other party a written notice of dispute which -
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(1)   states expressly   that a dispute has arisen out of this charter;
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(2)   specifies the   nature of the dispute; and
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(3)   refers expressly to this clause 41(c)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
and
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(b)   it fails to give   notice of election to have the dispute referred to arbitration not later than   30 days from the date of receipt of such notice of dispute.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(ii)   The   parties hereby agree that either party may -
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(a)   appeal   to the High Court on any question of law arising out of an award;

(b)   apply to the High   Court for an order that the arbitrator state the reasons for his award; 

(c)   give notice to   the arbitrator that a reasoned award is required; and 

(d)   apply to the High   Court to determine any question of law arising in the course of the   reference.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(d)
    	
 
    	
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. See additional clause 89
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Construction
    	
 
    	
42
    	
 
    	
 
    	
 
    	
 
    	
 
    	
The side headings have been   included in this charter for convenience of reference and shall in no way affect   the construction hereof.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
 
    	
 
    	
IN WITNESS WHEREOF, The parties have caused this charter to be   executed in duplicate the day and year herein first above written.
    

 

 

	
 
    	
 
    	
 
    
	
Owners
    	
 
    	
Charterers
    

 

Privy parties

The following companies are involved and related to this deal:

 

Owners

 

	
Owners’ parent company / organisation:
    	
Gener8 Maritime   Inc.
    
	
Address:
    	
Trust Company   Complex, Ajeltake Road,
   Ajeltake Island, Majuro, Marshall Islands,
   MH 96960
    
	
 
    	
 
    
	
Contact Details:
    	
Sean Bradley
    
	
 
    	
chartering@gener8mgmt.com
    
	
 
    	
 
    
	
Head Owners
    	
GMR Strength LLC
    
	
Full style:
    	
 
    
	
Address:
    	
80 Broad Street,   Monrovia, Liberia
    
	
 
    	
 
    
	
Contact:
    	
Sean Bradley
    
	
 
    	
chartering@gener8mgmt.com
    
	
 
    	
 
    
	
Current Owners’ full style:
    	
Same as Head Owners
    
	
Owners’ address:
    	
 
    
	
 
    	
 
    
	
Contact details:

24 hour contact name and number:
    	
 
    
	
 
    	
 
    
	
Owners’ chartering management company:
    	
Gener8 Maritime Management LLC
    
	
 
    	
 
    
	
Address:
    	
299 Park Ave., 2nd Floor
    
	
 
    	
New York, NY 10171 USA
    
	
Contact details for Chartering and operations
    	
+1 212 763 5600
    
	
chartering@gener8mgmt.com
    
	
 
    	
 
    
	
Owners Broker:
    	
NA
    
	
Contact details for chartering and operations:
    	
 
    

 

Chartering

 

	
Charterers’ full Style:
    	
V8 Pool Inc
    
	
Charterers’ address:
    	
Trust Company Complex, Ajeltake Road,
   Ajeltake Island
    
	
 
    	
Majuro, Marshall Islands MH 96960
    
	
Contact:
    	
Jason Klopfer
    
	
 
    	
jason@navig8group.com
    
	
 
    	
 
    
	
Charterers’ Broker:
    	
NA
    
	
Contact details for chartering and operations:
    	
 
    

 

 

In addition to clauses 1 through 42 of the SHELLTIME4 (issued December 1984) charter party the following additional clauses 43-118 are to apply. In any instance of a conflict the additional clauses are to overrule those of SHELLTIME4 (issued December 1984) and are to be binding.

 

The existence and details of this fixture to be kept strictly private and confidential between these parties and the same is not to be reported.

 

 

Additional Clauses 43-118

 

The Vessel

 

43. Additional description.

 

In addition to the vessel’s Questionnaire 88, the vessel is further described as follows:

 

Detailed description of M/T  Genmar Strength (to be renamed Gener8 Pericles)

 

	
Vessel’s actual class:
    	
+1A1 Tanker for Oil ESP, Nauticus (New Buiding), EO,   VCS-2, LCS(SI)
    
	
Ice class (if any):
    	
 
    	
 
    	
 
    
	
Vessel’s flag:
    	
Liberia
    	
Vessel built / age:
    	
2003 / 12
    
	
Deadweight:
    	
105   674
    	
Draft:
    	
14.878
    
	
Hull type:
    	
Single   skin
    	
Double   sided
    	
Double   bottom
    
	
 
    	
No
    	
Yes
    	
Yes
    
	
Fitted equipment:
    	
I.G.S.
    	
S.B.T.
    	
C.O.W.
    
	
 
    	
Yes
    	
Yes
    	
Yes
    
	
Heating ability and heating   equipment:
    	
Coiled
    	
Coil composition
    	
Max capacity (Deg)
    
	
Yes
    	
Yorkalbro
    	
44c to 66c within 4 days
    
	
SWL of derricks (mt):
    	
15 Tons
    	
 
    	
 
    
	
Vessel’s approvals:
    	
See Q88
    	
 
    	
 
    
	
Hull   and machinery insured value 
    	
See Q88
    	
 
    

 

Tank groupings, segregations and tank capacity.

 

	
Group
    	
 
    	
Tanks used
    	
 
    	
Capacity of each tank (m3)
    	
 
    	
Total capacity (m3)
    
	
1
    	
 
    	
1 P+S; 4 P+S ; Slops
    	
 
    	
1P : 8080.8 ; 1S : 8080.8 ;

4P : 8692.2 ; 4S : 8692.2 ;

Slop P : 2155.9 ; Slop S : 2155.9
    	
 
    	
37857.8

 
    
	
2
    	
 
    	
2 P+S; 5 P+S
    	
 
    	
2P : 10401.2 ; 2S : 10401.2 ;

5P : 10430.6 ; 5S : 10430.6 ;
    	
 
    	
41663.6
    
	
3
    	
 
    	
3 P+S ; 6P+S
    	
 
    	
3P : 10430.6 ; 3S : 10430.6 ;

6P : 9750.6 ; 6S : 9750.6
    	
 
    	
40362.4
    
	
4
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Capacity for bunkers and stores

 

	
Fuel oil (mt)
    	
1280
    	
Diesel/gas oil (mt)
    	
1280
    
	
Fresh water (mt)
    	
200
    	
Stores (mt)
    	
500
    

 

Cargo transfer rates.  Loading capacity and discharging capacity.

 

	
 
    	
 
    	
 
    	
 
    
	
Loading rate (m3ph)
    	
10500
    	
Discharging rate (m3ph)
    	
7500
    
	
 
    	
 
    	
 
    	
 
    
	
Ballast   transfer rates
    
	
 
    	
 
    	
 
    	
 
    
	
Taking on ballast (m3ph)
    	
3000
    	
Discharging ballast (m3ph)
    	
3000
    
	
Maximum percentage of the   deadweight in fully ballasted condition:
    	
37.4
    

 

Nationality of ships complement and communications

 

	
Nationality   of Master and name
    	
Adriano Guerra / Portuguese
    
	
Nationality of officers
    	
 
    	
Indian / Russian
    
	
Nationality of crew
    	
 
    	
Indian
    
	
Vessel’s call sign
    	
 
    	
A8BS5
    
	
Vessel’s email
    	
 
    	
genmar.strength@vsl.gmmllc.us
    

 

 

	
Vessel’s phone number
    	
 
    	
+870 773 251 976 Master/   Bridge 

+870 764 824 072 -   Master/Bridge
    
	
Vessel’s fax number
    	
 
    	
+870 764 824 074 - BRIDGE
    
	
Vessel’s telex number
    	
 
    	
Telex (Sat-C):   463694663/463790873
    

 

 

44. Documentation.

 

For all time charters in excess of 30 days in period, the Owners shall arrange to deliver the following documents electronically within three working days of all subjects being lifted and the time charter confirmed:

 

a)                                     Questionnaire 88 (latest edition).

b)                                     General arrangement and capacity plans.

c)                                      Deadweight scale.

d)                                     Detailed cargo manifold arrangement drawing, loading scale and mooring plan.

e)                                      Cargo/ballast pumping and pipeline arrangement plans

(types of valves fitted to be clearly show).

g)                                      Plan of cargo tank ventilating and inert gas systems.

h)                                     Mooring arrangement plan.

i)                                         O.C.I.M.F. Ship Information Questionnaire (latest edition).

 

In the event that the above documents are not received with in time, the Charterers shall, in its option, be entitled to cancel the time charter or postpone delivery of the vessel until such documents have been received in full.

 

Owners shall provide Charterers with read only access for the vessel if she is registered with Q88.com. If the Owners has not registered the vessel with Q88.com, then they are to provide a copy of the OCIMF VPQ in .vpz format. The Q88.com is to be kept updated with all the required information, including but not limited to class certificates and approvals.

 

45. Fixed equipment.

 

a) Inert gas system.

 

The Owners warrants that the vessel has a working inert gas system and that the officers and crew are experienced in the operation of the system. The Owners further warrants that the vessel will arrive at load port with cargo tanks inerted when required by Charterers and that tanks will remain inerted throughout the voyage and during discharge.

 

The vessel’s inert gas system shall fully comply with regulation 62, chapter 11-2 of the SOLAS Convention 1974 as modified by its protocol of 1978 and Owners’ undertake that such system shall be operated by the officers and crew in accordance with the operational procedures set out in the IMO publication entitled “Inert Gas System 1983” as may, from time to time, be amended.

 

The Master may be requested by terminal personnel or independent inspector to breach the IGS for purpose of gauging, sampling, temperature determination and or determining the quantity of cargo remaining on board after discharge. The Master shall comply with these requests consistent with the safe operation of the vessel.

 

If the Charterers so requires, the Owners shall arrange for the vessel’s tanks to be de-inerted to facilitate inspection, gauging and sampling. Any time taken in de-inerting, inspecting, gauging, sampling, and re-inerting thereafter shall count as on-hire.

 

b) Crude oil washing.

 

The Owners warrant that the vessel is equipped with a fully functional crude oil washing system complying with the latest edition of the MARPOL, and have officers and crew skilled and competent in the operation of such a system. The Charterers shall have the right to require the vessel to crude oil wash the tanks in which the cargo is carried. The Owners agrees to conduct crude oil washing of all cargo tanks at discharge port(s) simultaneously with cargo discharge operations and the same is to be to the Charterers’ satisfaction.

 

 

c) Heating.

 

The Owners warrants that the vessel is fully fitted with tight and functioning heating coils in all cargo tanks, or with heat exchangers, and is capable of applying heat to the cargo as agreed in this charter. The vessel is to be able to receive cargo up to a maximum temperature of 165 degrees Fahrenheit. The vessel’s heating system is to be able to maintain a cargo temperature, if required to do so, up to a maximum of 135 degrees Fahrenheit. The vessel is to be able to increase the temperature of the whole cargo on board by at least 4 degrees Fahrenheit per day if so instructed.

 

Any delays and or expenses resulting from non-compliance with this clause shall be for the Owners’ account. Any lost time owing to deficient or improper operation of the inert gas system or otherwise resulting from non-compliance with this clause to be considered as off hire.

 

46. Cast iron.

 

The 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 will be made of steel or nodular iron and that only steel reducer or spacer will be used between the ship’s valve and the loading arm.

 

The fixed rigid support for the manifold system must be designed to prevent both lateral and vertical movement of the manifold.  Owners further warrants that no more than one reducer or spacer will be used between the vessel’s manifold valve and the terminal hose or loading arm connection.  Owners warrants that all piping, valves, fittings and reducers on the manifold system or area used in the transfer of cargo and ballast will be made of steel or nodular iron.

 

47. Re-measurement.

 

The Charterers are to have the option to re-measure the vessel for the purpose of satisfying certain port or terminal regulations at any time during c/p period as often as required. All costs and time used for re-measuring to be for Charterers’ account. Owners are to advise if vessel has multiple load lines and if so, the corresponding deadweights.

 

48. Management and flag.

 

The Owners shall not change the Ownership or management of the vessel, or change the vessel’s flag or registry during the period of this charter without prior and written approval of the Charterers.

 

Any delay to the vessel caused by her flag or the nationality of her crew shall count as off hire.  All extra expenses and consequences, whatsoever, incurred by the Charterers attributable to the vessel’s flag or the nationality of her crew, will be for the Owners’ account.

 

49. Major oil company approvals.

 

(a)                       The Owners will have the vessel regularly vetted by major or other oil companies always at the Charterers’ time to ensure as many as possible vetting approvals are maintained or obtained and to keep the Charterers regularly informed of the vetting status of the vessel.

 

(b)                       Unless the vessel is a newbuilding and has not traded prior to its delivery under this charter then the vessel shall at all times comply with the following:

 

(i)             have approval / acceptance from a minimum of 4 of the following majors: Shell, BP, Exxonmobil, Chevtex, TotalFinaElf and Statoil (each an “Oil Major” and together, the “Oil Majors”); and

 

 

 

(ii)          have at least one (1) positive hydrocarbon discharge SIRE report from an Oil Major always less than six months old and its latest hydrocarbon discharge SIRE report from an Oil Major shall always be positive.

 

Immediately after a positive hydrocarbon discharge SIRE report from an Oil Major, it is assumed for the purpose of this clause that the vessel shall have approval / acceptance from all the Oil Majors except where an Oil Major has put in place a technical hold in relation to the Vessel and in all other cases, until proven otherwise as per the definition in clause 49 (d)(i).

 

(c)     If the vessel has been trading in areas where SIRE inspectors are unwilling to visit, the Owners are obliged to arrange a SIRE hydrocarbon discharge inspection at the first opportunity that the Vessel is in a discharge port where SIRE inspectors are willing to visit. If the Owners complies with this obligation, there shall be a grace period of three (3) weeks after the date of such inspection before the Charterers can exercise its rights as a result of a breach of clause 49(b)(ii).

 

(d)                       For the purpose of this clause 49:

 

i)             the Vessel shall cease to have “approval/ acceptance” from an Oil Major if (x) the Vessel has a technical hold put over the Vessel by such Oil Major or (y) the Vessel is, for whatever reason, rejected or not accepted, approved or preferred by such Oil Major for a prospective voyage charter when nominated by the Charterers who shall, if possible, disclose to Owners material facts for such nomination and shall, if possible, provide the Owners with the opportunity to refer to such Oil Major for the reasons of non acceptance; and

 

ii)          a SIRE report is “positive” if (x) it contains no recommendations / deficiencies, or any deficiencies noted have been rectified by the Owners and (y) the vessel’s technical manager listed in the SIRE report has not changed.

 

(e)                                            The Owners represents and warrants that the Oil Majors approving of the vessel at the time of delivery are:

 

	
Major oil company name
    	
 
    	
Approval expires
    
	
Shell
    	
 
    	
11 Oct 2015
    
	
BP
    	
 
    	
10 Jul 2015
    
	
Sunoco Logistics
    	
 
    	
 
    
	
Tesoro
    	
 
    	
 
    
	
Lukoil
    	
 
    	
23 Mar 2016
    

 

If there is any misrepresentation of the Oil Major approvals of the vessel at the time of the delivery by the Owners, the Charterers shall have the right to cancel the Charter and redeliver the vessel back to the Owners forthwith.

 

(f)      If the Vessel is a newbuilding and has obtained a BP Newbuilding Questionnaire and a Shell Idle Inspection, the Owners shall have a grace period of 3 months from the date of delivery under this charter before the Charterers can exercise their rights as a result of a breach by Owners of the provisions of clause 49(b).

 

 

(g)                        If the Charterers so requests, the Owners shall also arrange for further inspections by other oil company(ies) as required, as per Charterers’ trading program. The cost for such further inspection shall (provided the Owners first informs the cost to the Charterers) be for the Charterers’ account save where the SIRE report for such inspection is not positive, in which case all inspection costs incurred for such inspection shall be for Owners’ account.

 

(h)                       If the vessel fails to comply with the Oil Major and/or SIRE requirements in clause 49(b), Charterers have the option either: (i) to redeliver the vessel under this Charter to Owners by giving minimum 30 days notice without penalty to either party and such redelivery to take place within the agreed redelivery range as provided in the charter party or (ii) put the vessel off-hire under this charter until such failure to comply has been rectified. In the event that the vessel has been placed off-hire for a period of more than thirty (30) consecutive days within the terms of this clause, then Charterers shall have the right to cancel this Charter and redeliver the vessel to Owners in accordance with the terms of the this Charter without any further liability to either party.

 

(i)        The Owners agrees that they shall participate in OCIMF’s TMSA (Tanker Management Self Assessment) and the Owners will keep the Charterers informed of the levels reached or obtained in such programme. The Owners failing to achieve TMSA acceptance with OCIMF will give Charterers the right either (i) to redeliver the vessel to Owners by giving minimum 30 days notice without penalty to either party and such redelivery to take place within the agreed redelivery range as provided in the charter or (ii) put the vessel off-hire under this charter until such failure to comply has been rectified. In the event that the vessel has been placed off-hire for a period of more than thirty (30) consecutive days within the terms of this clause, then Charterers shall have the right to cancel this Charter and redeliver the vessel to Owners in accordance with the terms of the this Charter without any further liability to either party.

 

50. English Language and effective communication.

 

The vessel will be manned/crewed with a Master and Officers able to communicate both verbally and in written English, so as to ensure smooth communication with the Charterers, its agents and the shore personnel of any suppliers and receivers.

 

The Owners guarantees that the vessel is equipped with the technical and human means capable to send and receive via satellite or radio, all messages necessary to the commercial operation of the Charterers.

 

The communication costs paid by the Charterers to the Owners cover access to the vessel’s email, telex, fax and phone facilities, without restrictions. This access is to be extended to the Charterers’ agents, brokers, bunker suppliers and all such parties involved in the vessel’s voyage.

 

Bunkers, Speed and consumptions, Performance.

 

51. Speed and consumption warranty.

 

The Owners warrants that the vessel will perform as follows. The following speeds and consumptions to be applicable up to and including force 5 on the Beaufort Scale.

 

Please complete in full:

 

 

Speeds and consumptions for main engine steaming in open waters - IFO:

 

	
Type of
    	
 
    	
Speed (Knots)
    	
 
    	
Consumption (MT per day)
    	
 
    
	
steaming
    	
 
    	
Laden
    	
 
    	
Ballast
    	
 
    	
Laden
    	
 
    	
Ballast
    	
 
    
	
Full speed
    	
 
    	
13.5
    	
 
    	
14.0
    	
 
    	
39.0
    	
 
    	
36.0
    	
 
    
	
Performing speed
    	
 
    	
13.0
    	
 
    	
13.5
    	
 
    	
37.0
    	
 
    	
35.0
    	
 
    
	
Economic speed
    	
 
    	
12.5
    	
 
    	
13.0
    	
 
    	
32.0
    	
 
    	
30.0
    	
 
    

 

Speeds and consumptions for main engine steaming in open waters — MGO (SECA Areas only):

 

	
Type of 
    	
 
    	
Speed (Knots)
    	
 
    	
Consumption (MT per day)
    	
 
    
	
steaming
    	
 
    	
Laden
    	
 
    	
Ballast
    	
 
    	
Laden
    	
 
    	
Ballast
    	
 
    
	
Full speed
    	
 
    	
13.5
    	
 
    	
14.0
    	
 
    	
39.0
    	
 
    	
36.0
    	
 
    
	
Performing speed
    	
 
    	
13.0
    	
 
    	
13.5
    	
 
    	
37.0
    	
 
    	
35.0
    	
 
    
	
Economic speed
    	
 
    	
12.5
    	
 
    	
13.0
    	
 
    	
32.0
    	
 
    	
30.0
    	
 
    

 

Extra consumptions for auxiliary engines:

 

	
Additional IFO
    	
2.5
    	
Additional MGO
    	
2.5
    	
Additional MDO
    	
 
    

 

Bunker consumptions in port and discharging

 

	
Activity
    	
 
    	
Amount of IFO
    	
 
    	
Amount of MDO
    	
 
    	
Time allocated (hrs)
    	
 
    
	
Idle
    	
 
    	
10.0
    	
 
    	
10.0
    	
 
    	
24
    	
 
    
	
Manoeuvring in   shallow water
    	
 
    	
15.5
    	
 
    	
15.5
    	
 
    	
24
    	
 
    
	
Loading full   cargo
    	
 
    	
10.0
    	
 
    	
10.0
    	
 
    	
24
    	
 
    
	
Discharge full   cargo
    	
 
    	
50.0
    	
 
    	
50.0
    	
 
    	
24
    	
 
    

 

Bunker consumptions for other activities:

 

	
Activity
    	
 
    	
Amount of IFO
    	
 
    	
Amount of MDO
    	
 
    	
Time allocated (hrs)
    	
 
    
	
To clean from   clean to clean
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
To clean from   dirty to clean
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
To inert vessel
    	
 
    	
25.0
    	
 
    	
25.0
    	
 
    	
24
    	
 
    
	
To gas free   vessel
    	
 
    	
25.0
    	
 
    	
25.0
    	
 
    	
24
    	
 
    
	
To maintain   135Deg F
    	
 
    	
15.0
    	
 
    	
15.0
    	
 
    	
24
    	
 
    
	
To raise cargo   temp
    	
 
    	
20.0
    	
 
    	
20.0
    	
 
    	
24
    	
 
    
	
To ballast
    	
 
    	
4.0
    	
 
    	
4.0
    	
 
    	
24
    	
 
    
	
To de-ballast
    	
 
    	
4.0
    	
 
    	
4.0
    	
 
    	
24
    	
 
    
	
Crude Oil Wash
    	
 
    	
25.0
    	
 
    	
25.0
    	
 
    	
24
    	
 
    

 

To the extent that there is any conflict between SHELLTIME4 clause 24 and this clause 51, this clause 51 shall take precedence.

 

52. Bunker quality and supply.

 

The Owners confirms that the bunker specification and quantity on board at delivery, which is to be confirmed with supporting documents, to be as follows:

 

	
Fuel Type
    	
 
    	
Specific Grade
    	
 
    	
Quantity R.O.B. (mt)
    	
 
    
	
IFO
    	
 
    	
HFO 380cst
    	
 
    	
TBA
    	
 
    
	
MDO
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
MGO
    	
 
    	
LSMGO
    	
 
    	
TBA
    	
 
    
	
Other
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Other
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

The Charterers are to make best endeavours to provide bunkers of the quality and type suitable for burning in the vessel’s main engine, auxiliary engines and boilers with a

 

 

maximum viscosity of 380 CST and which conforms to the specifications of RMG 380 in ISO 8217 as last amended and to supply marine diesel oil of grade DMA conforming to the specifications of ISO 8217 as last amended. If Owners require the vessel to be supplied with more expensive bunkers they shall be liable for the extra cost thereof.

 

In areas of the world where such bunkers are not available, ISO standards are exceeded or ISO standards cannot be guaranteed (for example in countries where local state oil company specifications apply), the Charterers must supply bunkers as available locally. In such circumstances the local bunker specifications are to meet with the Owners’, or the Master’s, approval that is not to be unreasonably withheld.

 

Owners are solely responsible for checking the quality and quantity of the bunkers supplied and Charterers’ responsibility is limited to an obligation of due diligence to order the correct grade and quantity. Any discrepancy in the quantity of bunkers supplied and received, where the received quantity is less than the supplied quantity, is to be protested by master immediately upon receipt of bunkers. Owners are responsible for any discrepancy that is not immediately protested as above, or is only subsequently identified, and the value of the shortfall in bunkers received can at Charterers’ option be deducted from hire. Charterers shall have the right to ullage, inspect and sample vessel’s bunker tanks as well as inspect vessel’s void spaces and other tanks whatsoever.

 

The gauging of bunker barge soundings (of all tanks, whether or not nominated for discharge) and the sealing of the bunker sample must be witnessed by the vessel’s master or chief engineer in accordance with Charterers’ standard general instructions to masters provided to the Master from time to time. Owners shall be barred from bringing any claims against Charterers as to the quality of bunkers supplied under this Charter after such time-bar described in next paragraph has expired.

 

Should any dispute arise as to the quality of the bunkers supplied under this Charter (such to be time-barred unless notified by Owners to Charterers within 15 days of supply) then the Owners and the Charterers are to agree to a joint re-analysis of a representative sample, which has been witnessed and signed by the bunkering ship or barge representative, at a laboratory acceptable to Owners and Charterers. The sample for testing shall be the sample which has its seal number endorsed on the Bunker Delivery Receipt. The result of this analysis will be final and binding on all parties. Owners will arrange to have the delivered fuel tested by an internationally recognized fuel testing laboratory such as DNV or similar.

 

53. Bunker settlement.

 

The Charterers will accept and purchase the bunkers onboard the vessel at time and place of delivery. The Charterers shall pay for the bunkers on delivery at the price that the Owners last bunkered the vessel prior to delivery on a first-in, first-out basis, as evidenced by supporting invoices and bunker delivery receipts. An independent inspector will verify the actual quantity of bunkers remaining on board at time of delivery. The cost of such a bunker survey is to be split 50/50 between the Owners and the Charterers. Vessel shall be delivered by Owners to Charterers with minimum amount of bunkers required to safely reach the nearest bunkering port.

 

The Charterers shall endeavour to re-deliver the vessel to the Owners with a similar quantity of bunkers on board at re-delivery to those at the time of delivery. The Owners will accept and purchase the bunkers onboard the vessel at time and place of redelivery. The Owners shall pay for the bunkers on redelivery at the price that the Charterers last bunkered the vessel prior to redelivery on a first-in, first-out basis, as evidenced by supporting invoices and bunker delivery receipts. An independent inspector will verify the actual quantity remaining on board at the time of re-delivery. The cost of such bunker survey is to be split 50/50 between the Owners and the Charterers. Vessel shall be redelivered by Charterers to Owners with minimum amount of bunkers required to safely reach the nearest bunkering port.

 

 

54. Performance warranty.

 

The speed and consumptions of the vessel provided by the Owners in accordance with  Clause 51 will be binding to this charter. Where the vessel is a newbuild upon delivery under this Charter, the speed, consumptions at sea and consumptions in ports will be reviewed and actualised on the basis of performance data over the first 3 months. Such actualisation will be calculated separately for laden, ballast and in port consumptions.

 

The data will be used for the purposes of reviewing and determining the vessel’s total costs under the pool agreement for the vessel. Save for adjustments to the vessel total costs, no claims for over performance or under performance to be allowed. SHELLTIME4 clause 24 shall be read together with this clause 54 and to the extent that there is conflict between the two provisions, this clause 54 shall take precedence.

 

55. Monitoring vessel’s performance.

 

The parties agree that the vessel’s performance shall be monitored by a third party independent weather routing service nominated by the Charterers. Charterers shall pay all cost and expenses of such service provider. Owners agree that the Master’s daily noon and other required reports for the vessel shall be sent to the weather routing service provider and such data regarding distance sailed and bunkers consumed shall be used to evaluate the vessel’s performance for the purposes of the semi-annual Periodic Performance Review of the vessel under the Pool Agreement for the vessel. The weather routing service provider’s data regarding weather conditions during the vessel’s voyages shall be used for the purposes of such evaluation.

 

56. Vessel tracking.

 

It is agreed that the Charterers may from the time of fixing until completion of the charter period employ an Inmarsat C tracking system on the vessel. Such tracking system works using data provided automatically from the vessel’s on-board Inmarsat C system and can be installed simply, either remotely, or on some older systems, with minimal set up. The system will automatically provide information on the vessel’s position at set intervals.  Such information is displayed through password controlled Internet access.  (Charterers will, if required, supply the Owners with read-only access to this information through a website).

 

All registration and direct communication costs relating to this tracking system will be for the Charterers’ account. The Charterers will advise the Owners when the system is operative and confirm termination on completion of this charter. The OWNERS are required to supply the following information to the Charterers to enable installation, such information to form part of this charter.

 

	
VESSEL’S NAME
    	
GENMAR STRENGTH
    
	
INMARSAT NUMBER 9 DIGITS (1ST IS 4)
    	
463694663
    	
 
    
	
MAKE AND MODEL OF TERMINAL
    	
JRC
    	
NDZ – 127C
    
	
MODEL NUMBER
    	
JUE 75C
    	
 
    
	
TERMINAL S/W VERSION
    	
 
    	
 
    
	
SERIAL NUMBER
    	
10621
    	
 
    

 

57. Sailing plan and notice of any delay.

 

The Master is to notify the Charterers, before commencing next ocean passage and prior to sailing from port, his intended sailing plan, routing, estimated duration of the voyage and estimated arrival date and time at the next destination. If during the course of any voyage the vessel experiences a delay, of any nature, which will affect the Master’s estimated arrival time at the next port in excess of six hours the Master is to immediately contact the Charterers by phone then follow up in writing. The Master is to

 

 

provide a detailed explanation of the reason for the delay, any problems that have been caused to the vessel and provide the Charterers with a revised estimated time of arrival.

 

58. Weather routing service.

 

Owners hereby acknowledge that Fleetweather is currently Charterers’ nominated weather routing service provider.

 

Charterers may provide suggestions concerning navigation based on advice from the weather routing service provider and such suggestions shall be followed by Master. The Master, at his reasonable discretion, may not follow suggested route if such route will cause a threat to the vessel and or cargo or the performance will not be improved. In such case the Master is to describe in detail the reasons for departing from the suggested route.

 

59. Traffic separation.

 

In the interests of safety Owners will recommend that the Master is to observe the recommendations as to traffic separation and routing as issued from time to time by the I.M.O. or as promulgated by the state of the flag of the vessel, or the state in which the effective management of the vessel is exercised.

 

Financial

 

60. Commission.

 

Commission is payable as per the terms of the Pool Agreement.

 

61. Taxes on the vessel or the hire.

 

Any and all taxes and or dues on the vessel and or the hire payments to the Owners are to be for the Owners’ account and settled directly by them.

 

62. Extension of period.

 

Any loss of time during which the vessel is off hire shall count as part of the charter period.  The Charterers, however, in its option shall be able to add any or all of the off hire time to the period of the charter as an extension of the charter period.

 

Cargo Operations

 

63. Pumping performance.

 

On the basis of homogeneous cargo, the Owners warrants that the vessel can discharge the entire cargo within 24 (twenty four) hours or maintain a minimum pressure of 100 P.S.I. (pounds per square inch) at the vessel’s manifolds providing shore facilities are capable of receiving the same, excluding crude oil washing and stripping time. The vessel shall be equipped with pressure gauges at each manifold that are maintained in a proper working condition. Furthermore each gauge shall have a valid test certificate. The Owners are requested to instruct the Master to clarify by protest letter whenever the pumping time exceeds the warranted period.

 

Failing the above, the Charterers will deduct from hire excessive pumping time over and above such warranted time. If the vessel’s performance is below the referenced standard and pumping is delayed, due to the vessel’s deficiency, the Charterers have the right to withdraw the vessel from the berth until such deficiencies are remedied. All extra costs incurred as a result of this to be for Owners’ account and all time lost as a result is to be deducted from hire. The Owners will receive no credit or compensation if the vessel is able to discharge at a rate greater than specified above.

 

At each port of discharge, the vessel is to maintain a proper and accurate discharge pumping record. This log must be countersigned by Master, Discharge Port Inspector and representative of the receiving terminal, if available. On completion of discharge, this 

 

 

record is to be promptly faxed to the Charterers.

 

64. Tank cleaning.

 

On delivery, the vessel is to be suitably clean to carry Charterers nominated cargo, within the terms of this charter party, in all tanks (inclusive slop tanks).

 

Owners warrant that the Master, Officers and crew are familiar with and trained in tank cleaning procedures including wall washing techniques to enable Charterers to maximize the vessel’s carrying capacity within the limits of the permitted cargoes and tank coating manufacturer’s restrictions. A copy of any such restrictions is to be faxed to Charterers latest 7 days after the day of this charter party.

 

The Owners shall be responsible for cleaning tanks, lines and pumps between voyages in such manner as to enable vessel to pass inspection for the Charterers’ next nominated cargo upon arrival at the port of loading providing sailing / delivery time between voyages permit. The master is to advise his intended cleaning procedure to the Charterers.

 

Charterers to supply cleaning detergents and chemicals at their cost as required. Charterers have the right to put on board their supercargo as an advisor to the crew to carry out the cleaning process.

 

Where applicable, the vessel’s crew is to perform sweeping (squeegeeing) and tank cleaning after vegoil, palmoil, molasses cargo to water white standard when required by Charterers. The Charterers will pay USD 100 per tank for this combined sweeping and cleaning service after vegoil, palmoil, molasses cargo.

 

Chemicals for special cleaning are to be paid for by the Charterers.

 

Should the vessel fail a tank inspection, all time, bunker and costs incurred from the time when notice of readiness was originally tendered prior to the failed tank inspection will be for Owners account. Vessel will be off-hired from the time the Vessel originally tendered notice of readiness prior to the failed tank inspection until the Vessel passes the tank inspection and retenders her NOR.

 

65. Ballasting and deballasting operations.

 

The Owners warrants that the vessel is able to ballast and de-ballast concurrently with cargo operation. Under normal ballasting pattern, the vessel will take a maximum of 4 hours to de-ballast ready for loading. Should the vessel have to ballast for safety reasons (storm ballast), the maximum time for de-ballasting shall not apply. Any time lost by vessel being unable to ballast or de-ballast concurrently with cargo operation to be for the Owners’ account and may be deducted from hire unless such ballasting or de-ballasting concurrently with cargo operation is prohibited by local regulations.

 

66. Tank washings and prevention of pollution.

 

The vessel is to be delivered to the Charterers and re delivered back to the Owners free of slops, however, if this is not operationally possible then the following clause to apply.

 

In relation to tank washings the Master shall:

 

At the start of the ballast passage before presenting for loading at the commencement of this charter, retain on board all oil residues remaining in the vessel from one previous cargo in one slop tank, which the Charterers are to accept and arrange disposal of at Owners’ cost and time.

 

During tank washing collect the washing into one cargo compartment and, after maximum separation of free water, discharge such water overboard always, however, in accordance with international pollution legislation.

 

 

Notify the Charterers by email or telephone of the amounts of oil and water in  segregated tank washings.

 

On being so notified the Charterers shall, before the vessel’s arrival at the loading port, give instructions for the disposal of such segregated tank washing. The Owners shall ensure that the Master, on the vessel’s arrival at the loading port, is to arrange in conjunction with the cargo suppliers for the measurement of the quantity of such segregated tank washings and make a note of such quantity in the vessel’s Oil record book.  Owners shall ensure that the Master shall keep the water in such segregated tank washing to a minimum.

 

On re-delivery the Owners will accept the vessel back into their control with the washings from one previous cargo on board in one slop tank.  The Charterers are to make best endeavours to keep such washings and or slops to a minimum. Owners shall arrange for such disposal at the vessel’s next port of call after re-delivery at Charterers’ cost and time.

 

67. Cargo retention.

 

In the event that any cargo remains on board upon completion of discharge, the Charterers shall have the right to deduct from hire an amount equal to the FOB port loading value of such cargo plus voyage freight due with respect thereto provided that the volume of cargo remaining on board is pumpable and reachable by the vessel’s fixed pumps, or would have been pumpable and reachable but for the fault or negligence of the Owners, the Master, the vessel or her crew, as determined by an independent surveyor appointed by the Charterers and acceptable to both the Owners and the Charterers, whose findings shall be final and binding. Any action or lack of action in accordance with this provision shall be without prejudice to any rights or obligations of the Charterers. For the purposes of this clause, any surveyor from an internationally reputable surveyor company shall be considered acceptable to both the Owners and the Charterers.

 

68. In transit loss.

 

The Owners are to be responsible for any cargo in-transit loss exceeding 0.3 % as determined by an independent surveyor appointed by the Charterers and acceptable to both the Owners and the Charterers, whose findings shall be final and binding. In-transit loss is defined as, the difference between net vessel’s volume after loading at the load port and before unloading at the discharge port, based on the independent surveyor’s figures. Calculation is always to be based on same cargo temperature. Such cargo in-transit losses are to be deducted from hire at an amount equal to the FOB load port value of such cargo, plus hire and bunkers with respect thereto. For the purposes of this clause, any surveyor from an internationally reputable surveyor company shall be considered acceptable to both the Owners and the Charterers.

 

69. Cargo transfer inspection.

 

The Charterers may, in its option, at their time and at its risk and expense place a representative on board to observe preparations for loading or discharging of the cargo during the period that the vessel is proceeding to or is in a port. Such representative to be suitably insured for all personal risk and liability by the Charterers. Such visits shall include, without limitation, access to the pump room, the engine room, the cargo control room, the navigation bridge and the deck area. The Charterers’ representative may render advice to the Master.  He will not, however, under any circumstances order or direct the taking of any particular action by vessel or crew or interfere in any way with the Master’s exercise of his authority.

 

70. Ship to ship transfer.

 

The Charterers shall have the option to load and discharge and/or lighten the vessel via ship-to-ship transfer at sea, at anchor or underway off any port or berth to berth, or double banking in any port within the trading limits of this Charter. The Charterers will 

 

 

provide all fenders, hoses and equipment necessary to perform the lightering operation. The Owners are to agree to allow supervisory personnel on board, including but not limited to a qualified/experienced Mooring Master, to assist in the performance of the lightering operation.

 

Owners and Charterers warrant that any ship-to-ship operation and equipment shall be carried out in accordance with the procedures set out in the last revised edition of the International Chamber of Shipping Oil Companies International Marine Forum, Ship-to-Ship Transfer Guide for Petroleum. Owners warrant that the vessel, master, officers and crew are, and shall remain during this Charter, capable of safely carrying out all the procedures in the current edition of the ICS/ OCIMF Ship to Ship Transfer Guide (Petroleum).

 

Operations shall be made under the exclusive direction, supervision and control of the vessel’s master and to the satisfaction of the mooring master and/or cargo STS advisor. Vessel’s master shall continue to be fully responsible for the operation, management and navigation of the Vessel during the entire STS operation. It is understood and agreed that the crew of the vessel will be required to assist handling fenders and cargo hoses as well as mooring and unmooring as designated by the Mooring Master at the transfer site at no additional cost to the Charterers.

 

Charterers shall notify Owners in advance when, where and how much cargo shall be carried out under such ship to ship transfer operations as well as any other relevant information required prior to the arrival of the Vessel at the intended ship to ship transfer site.

 

The vessel may be required to accept dirty ballast from one or more of Charterers lightering vessels in performance of the lightering operation if technically and operationally feasible and the Owners warrants that the Master will co-operate with the Mooring Master concerning dirty ballast to the extent possible in the Master’s discretion. The Charterers are to pay all costs related to removal of such ballast water ashore on a regular basis, and vessel shall be redelivered with no such waters/ROB.

 

Owners’ consent is required if Charterers wish to use the Vessel for more than two (2) consecutive ship-to-ship transfer operations, however such consent not to be unreasonably withheld.

 

71. Sea terminal.

 

The Owners warrants that the vessel, when calling at a sea terminal, will maintain her engines in readiness.  The vessel will be loaded and discharged in such manner that she, at any stage of loading or discharging operation, is able if necessary, for any reason, to immediately shut down cargo operations and promptly disconnect hoses and mooring lines to proceed to another anchorage at sea.

 

72. Agents and watchmen.

 

The Owners are to appoint their own agents when and if there is major Owners’ business such as extensive repairs, docking, and other extended off-hire periods. However, the Charterers’ choice of agents are to attend, at cost, to minor matters such as postage, cash advance to Master, crew transportations, medical, telexes, etc., on the Owners’ behalf.

 

Gangway watchmen and fire watchmen to be for the Owners’ account unless compulsory in which case the cost to be for the Charterers’ account, unless watchmen from vessel’s crew are sufficient and may be used.

 

73. Adherence to voyage orders.

 

Owner undertakes that, unless Charterers require otherwise, the Master will follow voyage instructions issued by Charterers which instructions shall include Charterers’ 

 

 

standard general instructions contained in the Masters Manual and/or Charterers’ Vessels Circular provided by Charterers to the Master from time to time. Owner shall be responsible for any time, cost, delay or loss associated with vessel deviating from Charterers’ voyage instructions including, without limitation, loading any cargo quantity in excess of, or short of, that instructed within the voyage orders.  If a discrepancy arises at loading terminal, Master is to contact Charterers at once concerning said discrepancy, before loading, to clarify the situation. If a conflict arises between terminal order and Charterers’ voyage instructions, the Master is to stop cargo operations and to contact Charterers at once. Terminal orders shall never supersede Charterers’ voyage instructions and any conflict shall be resolved prior to resumption of cargo operations. The vessel is not to resume cargo operations until Charterers have directed the vessel to do so.

 

74. International transport workers federation.

 

The Owners guarantees that the employment of the vessel’s officers and crew is covered by a bona-fide trade union agreement acceptable to the International Transport Workers Federation worldwide and will remain so during the currency of this charter. The vessel is to carry such agreement on board during the service. In the event that the vessel is delayed by strikes, labour disputes or any other discrimination or difficulties against the vessel because of: previous trade prior to commencement of this Charter; the Ownership; the flag; the officers, crew and the officer’s and crew’s employment conditions, all such time lost is to be considered as off hire and expenses directly incurred thereby including bunker fuel consumed during such periods to be for the Owners’ account.

 

Eligibility, Insurance and Certification

 

75. Classification and eligibility.

 

The Owners warrants that the vessel is in all respect eligible under applicable conventions, laws and regulations for trading to and from the port and places specified in clause 4 of this time charter party.  Furthermore, the vessel is not in any way listed as unacceptable by any Government or other organization whatsoever, nor is she debarred by any activity of any port within the agreed trading areas.  The vessel shall have on board for inspection by the authorities all certificates, records, compliance letters and other documents required for such services, including, but not limited to, a U.S. Coast Guard Certificate of Financial Responsibility (Oil Pollution) and the certificate required by Article VII of International Convention on Civil Liability for Oil Pollution Damage of 1969, as amended.

 

The Owners warrants that the vessel does and will throughout the duration of this charter fully comply with all applicable conventions, laws, regulations and ordinances of any international, national, state or local governmental entity having jurisdiction including, but not limited to:

 

(a)         the US Port and Tanker Safety Act, as amended,

(b)         the US Federal Water Pollution Control Act (Clean Water Act), as amended,

(c)          MARPOL 1973/78 as amended and extended,

(d)         SOLAS 1974/1978/1983 as amended and extended,

(e)          OPA 1990, as amended,

(f)           The EU Directive 2005/33/EC, as amended.

 

The Owners further warrants that any alterations (including time for alterations) to the ship to comply with any of these conventions, laws, regulations, ordinances and/or their amendments will be entirely at Owners’ expense.

 

The Owners further warrants to keep the vessel with unexpired classification in force at all time during the charter period.

 

 

Any delays, losses, expenses or damages arising as a result of failure to comply with any part of this clause shall be for the Owners’ account and the Charterers shall not be liable for any delay caused by failure to comply with these warranties.  Any resultant loss of time will be considered as off hire.

 

76. USCG compliance.

 

The Owners certifies that the vessel complies with the provisions of current U.S. Coast Guard regulations and any subsequent amendment thereto and all other applicable state pollution and safety laws, rules and regulations as may be promulgated and subsequent amendments thereto. The Owners further certifies that the vessel is not presently under an outstanding letter of discrepancy issued by the U.S. Coast Guard as a result of Coast Guard inspection of the vessel at a prior call at a U.S.A. port.

 

Owners warrant that they are aware of the requirements of the U.S Bureau of Customs and Border Protection ruling issued on December 5th 2003 under Federal Register Part II Department of Homeland Security 19 CFR Parts 4, 103, et al. and will comply fully with these requirements for entering U.S ports.

 

The vessel must possess a valid U.S.C.G Certificate of Compliance (COC) Certificate. Owners appreciate that without a COC in force, the Vessel may not be able to tender a valid NOR under Charterer’s sub-charter party, with loss of demurrage as a result. The Vessel will be off-hire for the period of time for which Charterers are unable to collect voyage charter laytime/demurrage due to the Vessel arriving in the U.S. without a valid U.S.C.G COC. Should the vessel be overdue for an annual interim COC exam and the U.S.C.G deems the vessel to be cargo restricted, the Vessel shall be considered as not being in possession of a valid COC. Should the vessel have to deviate, proceed to a layberth and / or incur additional costs to complete the COC exam, all deviation time, bunkers and port costs incurred will be for Owner’s account. The Vessel will return on hire at a position not less favourable to Charterers.

 

Should the Vessel fail the U.S.C.G COC inspection or Owners fail to arrange COC inspection prior to arrival, then the entire period of time in which Charterers are unable to collect Voyage laytime/demurrage shall be off-hire.

 

Should it be feasible to carry out the COC inspection at a port outside the USA (such as for example Singapore or Rotterdam), Charterers may request that Owners have the vessel inspected at such a location at Owners’s time and expense. Should Owners refuse to carry out the inspection as requested, the Vessel shall be off-hire from arrival at the US port of inspection and until the COC certificate has been issued.

 

In respect of US/Canadian Asian Gyspy Moth (AGM) regulations, Owners shall ensure that pre-departure certifications are obtained prior to departing AGM-affected ports and:

 

(a) all costs and associated costs of AGM certification;

(b) any time lost waiting for and undertaking the certification inspections; and

(c) any fines, delays, claims or other losses that are incurred in connection with non-compliance with AGM regulations,

 

shall be for Owners’ account.

 

77. AMS and CBSA requirements.

 

(a)  If the Vessel loads or carries cargo destined for the US or passing through US ports in transit, the Owners shall comply with the current US Customs regulations (19 CFR 4.7) or any subsequent amendments thereto and shall undertake the role of carrier for the purposes of such regulations and shall submit a cargo declaration by AMS (Automated Manifest System) to the US Customs using the Charterers’ service provider and Charterers’ SCAC (Standard Carrier Alpha Code) and ICB (International Carrier 

 

 

Bond). Similarly, if the Vessel loads or carries cargo destined for Canada or passing  through Canadian ports in transit, the Owners shall comply with the current Canadian customs regulations and any Canada Border Services Agency (CBSA) requirements, including those related to the Bonded Carrier Code.

 

(b) The Charterers shall provide all necessary information to the Owners and/or their agents to enable the Owners to submit a timely and accurate cargo declaration.

 

The Charterers shall assume liability for and shall indemnify, defend and hold harmless the Owners against any loss and/or damage whatsoever (including consequential loss and/or damage) and/or any expenses, fines, penalties and all other claims of whatsoever nature, including but not limited to legal costs, arising from the Charterers’ failure to comply with any of the provisions of this sub-clause.

 

(c) The Owners shall assume liability for and shall indemnify, defend and hold harmless the Charterers against any loss and/or damage whatsoever (including consequential loss and/or damage) and any expenses, fines, penalties and all other claims of whatsoever nature, including but not limited to legal costs, arising from the Owners’ failure to comply with any of the provisions of sub-clause (a).

 

(d)  Any implied assumption of the role of carrier by the Charterers pursuant to this Clause and for the purpose of the US Customs Regulations (19 CFR 4.7) or for the purposes of the Canadian Customs Regulations shall be without prejudice to the identity of carrier under any bill of lading, other contract, law or regulation.

 

The Owners will submit the cargo declaration via the Charterers service provider to the US or Canadian (as applicable) customs authorities, however the Charterers are obliged to provide all the necessary cargo information enabling Owners to submit the cargo declaration in a timely fashion. In this regard, Charterers indemnify and hold the Owners harmless against any loss or damage whatsoever arising out of the non-compliance by the Charterers with the obligations under this clause.

 

Furthermore Owners to indemnify the Charterers for loss and/or damage arising from the Owners’ failure to comply with the regulation as it has been outlined.

 

In the event the vessel is delayed, detained as a result of Charterers failure to comply with its obligations under this clause; in these instances vessel will remain On hire unless delays has been caused by the Owners breach of its obligations hereunder.

 

78. ISPS.

 

(a) (i) From the date of coming into force of the International Code for the Security of Ships and of Port Facilities and the relevant amendments to Chapter XI of SOLAS (ISPS Code) in relation to the Vessel and thereafter during the currency of this charter, the Owners shall procure that both the Vessel and “the Company” (as defined by the ISPS Code) shall comply with the requirements of the ISPS Code relating to the Vessel and the Company. Upon request the Owners shall provide a copy of the relevant International Ship Security Certificate (or the Interim International Ship Security Certificate) to the Charterers. The Owners shall provide the Charterers with the full style contact details of the Company Security Officer (CSO).

 

(ii) Except as otherwise provided in this charter, loss, damage, expense or delay, excluding consequential loss, caused by failure on the part of the Owners or the Company to comply with the requirements of the ISPS Code or this Clause shall be for the Owners account.

 

(b) (i) The Charterers shall provide the CSO and or the Ship Security Officer (SSO)/Master with their full style contact details and, where sub-letting is permitted under the terms of this charter, shall ensure that the contact details of all sub-Charterers are likewise provided to the CSO and or the SSO/Master.

 

 

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) Except as otherwise provided in this charter, loss, damage, expense or delay, excluding consequential loss, caused by failure on the part of the Charterers to comply with this Clause shall be for the Charterers account.

 

(c)  Security guards posted on the vessel due to crew issues by the USCG will be for Owners’ account.

 

79. Drug and alcohol abuse.

 

The Exxon Drug and Alcohol Policy, blanket declaration is to be deemed a part of this charter. The Owners warrants such blanket declaration is registered with Exxon. The Owners further warrants that it has an active policy on drug and alcohol abuse, applicable to the vessel, in full force at all times which meets or exceeds the standards set down in the Oil Companies International Marine Forum Guidelines for the control of drugs and alcohol onboard ship. The policy will remain in effect during the term of this charter and will be fully complied with at all times.  The Charterers are not to be held responsible for any and all consequences of the Owners failing to comply with this clause.

 

80. Insurance and financial responsibility.

 

a) Owners warrant that, throughout Vessel’s service under this Charter, Owners shall have full and valid Protection and Indemnity Insurance (“P&I Insurance”) for the Vessel, as described in this clause, with the P&I Insurance placed with a P&I Club which is a member of the International Group of P&I Clubs.  This P&I Insurance and any Excess Insurance shall be at no cost to Charterers.

 

(b) The P&I Insurance must include coverage against liability for cargo loss and or damage and coverage against liability for pollution for an amount not less than US$1 Billion per incident.  Owners will also obtain any additional oil pollution insurance cover which becomes available, either through their P&I Club(s) or through underwriters providing first class security.

 

(c) Owners hereby warrant and represent that the insured value of the Vessel is [***].  Owners warrant that it has in full force and effect Hull and Machinery insurance placed through reputable Brokers on International Hull clauses, or equivalent, for the value of the Vessel with first class underwriters. Such insurance to be maintained for the duration of this Charter.

 

(d) Owners warrant that the Vessel carries on board a certificate (which will be maintained in effect throughout the duration of the charter) issued by Owners’ P&I Club in compliance with Article VII of the International Convention on Civil Liability for Oil Pollution Damage 1992 (and any amendments thereto). Any delay or consequences due to failure to have on board or to maintain in effect such certificate to be for Owners’ account.

 

(e) DELETED

 

(f) Nothing in this Charter shall prejudice Charterers’ rights to take such preventive measures in relation to pollution or threatened pollution as may be permissible under applicable laws and the rights and duties of Owners and Charterers herein shall be and remain subject to and in accordance with any such applicable law.

 

(g) If requested by Charterers, Owners shall promptly furnish to Charterers proper evidence of such P&I Insurance and Hull & Machinery Insurance (including but not 

 

 

limited to certificates of Entry / Endorsement Slip) immediately upon entering into this Charter or at any time during the Charter term.

 

(h)   The Owners further guarantees to keep the vessel with un-expired classification in force at all time during the charter period and are to provide evidence of the same in accordance with this clause.

 

(i) Water Quality and FMC Clause

 

The Owners warrants to have, and to carry, on board the vessel the U.S. Federal Maritime Commission Certificate of Financial Responsibility and to comply with the U.S. Federal Water Pollution Control Act as amended by the Clean Water Act 1977(water pollution and any subsequent amendment thereto). The Owners are to provide evidence of Financial Responsibility in respect not only of oil but also of hazardous substance.

 

(j) State of California.

 

The Owners warrants that the vessel carries on board documentation of proof of financial  responsibility satisfying requirements of the California Oil Spill Prevention and Response Act of 1990.

 

(k) I.T.O.P.F (revised Tovalop 1987)

 

The Owners warrants that it is a member of the International Tanker Owners Pollution Federation (I.T.O.P.F.) and that it will retain such membership during the entire period of the services of its vessel under this charter.

 

(l) I.S.M.

 

The Owners warrants that this vessel complies fully with the I.S.M. code and is in possession of a valid Safety Management Certificate and this will remain so for the entirety of her employment under this charter.

 

Without prejudice to any rights or remedies available under the terms of this charter or under English law, in the event of a breach of the above undertaking, any loss, damage, expense or delay following there from shall be for the Owners’ account and the Charterers shall have the absolute right to cancel this Charter if such breach is not rectified within three (3) days.

 

81. Oil pollution.

 

(a)           Subject to the terms of this Charter, as between Owners and Charterers, in the event of an oil pollution incident involving any discharge or threat of discharge of oil, oily mixture, or oily residue from the Vessel (the “Pollution Incident”), Owners shall have sole responsibility for responding to the Pollution Incident as may be required of the vessel interests by applicable law or regulation.

 

(b)           Without prejudice to the above, as between the parties it is hereby agreed that:

 

(i)             Owners shall indemnify, defend and hold Charterers harmless in respect of any liability for criminal fine or civil penalty arising out of or in connection with a Pollution Incident, to the extent that such Pollution Incident results from a negligent act or omission, or breach of this Charter by Owners, their servants or agents;

 

(ii)              Charterers shall indemnify, defend and hold Owners harmless in respect of any liability for criminal fine or civil penalty arising out of or in connection with a Pollution Incident, to the extent that such Pollution Incident results from a negligent act or omission, or breach of this Charter by Charterers, their servants or agents;

 

provided always that if such fine or penalty has been imposed by reason wholly or partly of any fault of the party seeking the indemnity, the amount of the

 

 

indemnity shall be limited accordingly and further provided that the law governing the Charter does not prohibit recovery of such fines.

 

(c)                                  The rights of Owners and Charterers under this clause shall extend to and include an indemnity in respect of any reasonable legal costs and/or other expenses incurred by or awarded against them in respect of any proceedings instituted against them for the imposition of any fine or other penalty in circumstances set out in paragraph (b), irrespective of whether any fine or other penalty is actually imposed.

 

(d)                                 Nothing in this Clause shall prejudice any right of recourse of either party, or any defences or right to limit liability under any applicable law.

 

(e)                                  Owners warrants that the vessel will be able to trade to and from Canadian ports.

 

82. Extra insurance.

 

Owners warrants that any extra insurance, if any, due to the Vessel’s age shall be for the Owners’ account.

 

83. Hull and machinery value.

 

The value of hull and machinery insurance may be changed every year, however, such change to be understood as the adjustment of this type of vessel’s market value or as required by holders of the mortgage at that time only and Owners will inform Charterers of new value, if changed accordingly.

 

84. Air pollution.

 

Owners will comply with all applicable laws, regulations and ordinances by any national, state, regional or local, government having jurisdiction regarding air pollution.

 

85. Return insurance.

 

Charterers to have the benefit of any return insurance premium received by Owners from underwriters (as and when received from underwriters) by reason of the vessel being in port for a minimum period of 30 days, provided the vessel is on hire.

 

86. War risk and Piracy.

 

a)                                     Charterers shall not be liable for late redelivery under this charter resulting from seizure of the vessel by pirates.

 

b)                                     Owners shall not be allowed to claim blocking and trapping insurance.

 

c)                                      No contraband of war shall be shipped, but petroleum and/or its products shall not be deemed contraband of war for the purposes of this clause. Vessel shall not, however, be required, without the consent of Owners, which shall not be unreasonably withheld, to enter any port or zone which is involved in a state of war, warlike operations or hostilities, civil strike, insurrection or piracy whether there be a declaration of war or not, where it might reasonably be expected to be subjected to capture, seizure or arrest, or to be a hostile act by a belligerent power (the term “power meaning any de jure or de facto authority or any other purported governmental organization maintaining naval, military or air forces).

 

d)                                    For the purpose of this clause it shall be unreasonable for Owners to withhold consent to any voyage, route or port of loading or discharge if (i) insurance against all risks defined in paragraph c) is then available commercially or under a government program in respect of such voyage, route or port of loading or discharge and (ii) it continues to be customary tanker shipping industry practice for vessels to undertake such voyage, route or port of loading or discharge. If such consent is given by Owners, Charterers will pay the provable additional war risk premium of insuring the vessel against hull war risk in an amount equal to the value under her ordinary hull policy net of all discounts, rebates and no claims bonuses. The benefit of discounts, rebates and no

 

 

claims bonuses on additional premiums received by Owners from their War Risks insurers, underwriters or brokers shall be credited to Charterers in full. Charterers shall reimburse Owners any amounts due under this clause upon receipt of Owners’ invoice, together with full supporting documentation including all associated debit and credit notes.

 

e)                                      If additional insurance for hull war risk is not obtainable commercially or through a government program, vessel shall not be required to enter or remain at any such port or zone.

 

f)                                       In addition, Owners may purchase at their own cost war risk insurance on ancillary risks such as loss of hire, freight, disbursements, etc. if they carry such insurance for ordinary marine hazards.

 

g)                                      Owners must submit all reimbursement claims together with all required supporting documents under this Charter to Charterers within 3 months of Owners being invoiced the relevant costs otherwise Owners’ claim shall be time-barred under this Charter.

 

h)                                     Where there is a conflict between the provisions of this clause 86 and clause 105, the provisions of clause 105 shall take precedence.

 

Bills of Lading, Documentation, Arbitration

 

87A. Letter of Indemnity and Bill of Lading.

 

If Charterers by facsimile, email or other form of written communication that specifically refers to this clause request Owners to discharge a quantity of cargo either:

 

a)                                Without Bills of Lading and/or;

 

b)                                at a discharge place other than that named in a Bill of lading and/or;

 

c)                                 that is different from the Bill of Lading quantity;

 

In consideration of Owners complying with Charterers’ specific instructions, as above, Charterers shall, upon giving formal notification to Owners, invoke Owners’ P and I Club Letter of Indemnity Wording for such activity. Owners’ P and I Club Letter of Indemnity Wording are always to be issued without a bank guarantee.

 

Owners’ blanket Letter of Indemnity wordings are to have been provided by Owners prior to delivery under this Charter and are incorporated into this Charter. Charterers always have the option to invoke the same as and when necessary either verbally or by facsimile or email to the Owners and when invoked, the Letter of Indemnity is deemed to have been issued by Charterers with the relevant cargo quantity, description of cargo, vessel’s name and receiver’s name (as given in the relevant voyage/discharge instructions to the vessel) incorporated into such Letter of Indemnity and, therefore, to be in full force and effect on each and every occasion when discharge as aforesaid takes place.

 

Such indemnity shall automatically be null and void upon presentation of the relevant Bill of Lading, or 12 (twelve) months after completion of discharge of cargo to which such indemnity is relevant.

 

 

87B. Electronic Bills of Lading.

 

Notwithstanding anything contained in this Charter, Charterers may require Owners to sign up to an electronic document trading platform system that is approved by Owners P&I Club so that Owners can, upon instructions from Charterers, issue and sign in electronic form and transmit electronically any bill of lading, waybill, delivery order, certificate or other document (each, an “eDoc”) issued pursuant to, or in connection with, this Charter (whether or not signed on behalf of Owners or Charterers or any sub-charterers). It is expressly agreed that any applicable requirement of law, contract, custom or practice that any bill of lading, waybill, delivery order, certificate or other document or communication issued pursuant to this Charter shall be made or evidenced in writing, signed or sealed shall be satisfied by such eDoc and the parties agree not to contend in any dispute arising out of or in connection with any eDoc or any eDoc which has been converted to paper that such eDoc is invalid on the grounds that it is not in writing or that it is not equivalent to an original paper document signed by hand, or, as the case may be, sealed.

 

Charterers agree to hold Owners harmless in respect of any liability, cost or expense arising from the use of any electronic trading system, to the extent that such liability, cost or expense would not have arisen under a paper trading system.

 

88. New paramount.

 

Charterers shall endeavor to ensure that all Bills of Lading issued pursuant to this charter shall contain the following clauses:

 

1. Subject to sub-clauses (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 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 that 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 herein contained shall be deemed to be either 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 that applies 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 herein contained shall be deemed to be either 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.

 

If any term of this Bill of Lading is repugnant to the Hague-Visby Rules, or Hague Rules or Hamburg Rules, if applicable, such term shall be void to that extent, but no further.  Nothing in the Bill of Lading shall be constructed as in any way to restrict, exclude or waive the right of any of the relevant parties or person to limit liability under any available legislation and or law.

 

89. Arbitration (London Maritime Arbitrators’ Association).

 

This Charter is governed by English law and the provisions of clause 20 of the Pool Agreement for the vessel shall apply to this Charter as if the same was set out in full, mutatis mutandis, herein.

 

90. Onboard blending / Commingling.

 

Charterers shall have the right to perform onboard blending and/or commingling of cargo whilst loading or during sea passage, being two or more grades, over the designated

 

 

cargo tanks to be loaded. Vessel’s staff shall ensure that proper stability maintained during the entire operation. Charterers’ nominated cargo inspector to supervise such onboard blending and vessel’s staff is to follow the inspector’s recommendations. In the absence of Charterers’ cargo inspector, Owners to follow Charterers’ instructions subject to ship’s safety. Charterers will issue L.O.I. in Owners P&I Club wording.

 

91. Dye / Additive.

 

In case Charterers request additive to be added to a cargo while in the vessel’s cargo tanks Owners will accept to do the operation provided it is proper/permissible and within the industry practice and Charterers to provide a LOI to that effect agreeable to Owners. Charterers have the option to add ‘liquid dye’ to cargo in vessel’s tanks just prior to the commencement of discharge at their risk and expense. The time and cost for the dye shall be for Charterers’ account. The dye can only be added with total compliance under the full instruction and supervision of the Master and/or Chief Officer who will always have final authority to how the dye is added. Charterers to indemnify Owners as per Owners’ P&I Club wording for adding dye. Owners’ standard instructions for adding dye to cargo which Charterers to comply in full.

 

All dye must only be added under direct supervision of Master and /or Chief Officer.

 

Miscellaneous

 

92. Smuggling.

 

Any delays, expenses and/or fines incurred on the account of smuggling to be for Owners’ account if caused by the Master, Officers, Crew or Owners’ servants.

 

93. Third Party Arrest Clause.

 

In the event of arrest (by a party other than authorities at home or abroad) or other sanction levied against the vessel or the Charterers arising out of the Owners’ breach or any fault of the Owners or out of any incident in which Charterers are not at fault, the Owners shall immediately and, forthwith upon receiving notice of the arrest of the vessel or of its detention in exercise or purported exercise of any lien or claim, procure its release by providing bail or otherwise as the circumstances may require and agree to assume full responsibility for all penalties, claims from cargo receivers, sub charterers and other third parties arising due to such event of arrest or other sanction and for putting up security and the vessel shall be considered off-hire during any delay or detention arising therefrom. Owners shall further be liable for all consequential losses caused by an arrest, seizure, detention or other claims against the vessel arising out of any matters in which Charterers are not at fault.

 

94. Detention Clause.

 

Should the vessel be seized or detained by any authority, or arrested at the suit of any party having or purporting to have a claim against the vessel or having or purporting to have any interest in the vessel, hire shall not be payable in respect of any period during which the vessel is not fully at the Charterers’ use and all extra expenses shall be for the Owners’ account and Owners shall immediately and, forthwith upon receiving notice of the arrest of the vessel or of its detention in exercise or purported exercise of any lien or claim, procure its release by providing bail or otherwise as the circumstances may require and will also be responsible for claims from cargo receivers, sub charterers and other third parties arising due to such event of seizure, detention or arrest and, unless such seizure, detention or arrest is occasioned by any personal act or omission or default of the Charterers or their agents or by reason of cargo carried. Owners shall further be liable for all consequential losses caused by an arrest, seizure, detention or other claims against the vessel arising out of any matters in which Charterers are not at fault.

 

 

95. Vaccination Clause.

 

Owners are to arrange at its expense for the Master, Officer and Crew of the vessel, to hold valid vaccination certificates against yellow fever, cholera, as per International Health Regulations 1969 or any other future legislation and subsequent amendments, upon delivery of the vessel and throughout the time charter period. Any other vaccination requirement, which may come up from time to time throughout the world and are relevant to the vessel’s trading, shall be carried out at Owners’ expense.

 

96. Clean Ballast Clause.

 

Throughout the duration of this charter, the vessel is always to arrive at all load port(s) with clean ballast only.

 

97. Notice Of Readiness (NOR) Clause.

 

At every load port and discharge port, throughout the duration of this time charter, the vessel shall tender her NOR immediately on arrival in the customary way. Until such time as the vessel is all fast at the berth/jetty, the Master shall re-tender vessel’s NOR, daily, at 09:00 hours local time, to all parties if so instructed in the Charterers’ load/discharge orders.

 

The text of subsequent daily NOR, as above, to be:

 

“Without prejudice to original NOR tendered                           Hrs on                        20       (to be completed as appropriate), on vessel’s arrival, please be advised that my vessel is/remains ready in all respects to commence loading/discharging (delete as appropriate) of the cargo of                             (complete as appropriate)”.

 

98. Slop Clause.

 

The vessel shall have efficient and safe means of transferring engine room / pump room bilge liquids to designated holding tanks on board for disposal in accordance with international regulations.

 

99. Gauges Clause.

 

The vessel to be equipped with closed venting, gauging and sampling systems and cargo tanks to be equipped with high level alarms. Sufficient portable pressure gauges to be on board all times for the manifolds.

 

100. Slow Steam.

 

Owners agree to allow Charterers to issue orders to slow down the vessel consistent with safe operation of the vessel and its machinery on ballast and / or laden passage.

 

101. Oil Pollution Prevention.

 

Owners shall instruct the Master to retain on board all oily residues of oil of a persistent nature remaining in the vessel from the previous cargo. The Master shall, during tank washing, collect the washing into one cargo compartment and after maximum separation of the free water, discharge the water so separated overboard as permitted by MARPOL regulations so as not to conflict with any applicable local laws. The Master shall keep the Charterers notified of estimated tonnage of all segregated tank washings from previous cargoes.

 

102. U.S. Compliance Clause.

 

Owners warrants and guarantees that it and the vessel are not in any way directly or indirectly owned, controlled by or related to any Cuban, North Korean, Iranian, Serbian or Montenegro interests.

 

103. Baltic Navigation Clause.

 

Before entering Baltic waters vessel to have all navigation aids in perfect condition and while in the Baltic and / or Finnish Gulf strictly observe all regulations and recommendations. No oil or oily residues or wastes to be let overboard into the sea whilst in the Baltic or in the Gulf of Finland.

 

 

104. Low Sulphur Fuel Clause.

 

(a) Owners warrant that the vessel will be fitted with the required piping, tanks and equipment to comply with Marpol Annex VI requirements and have on board procedures to carry out and comply with the change to and from Low Sulphur Fuel (LSF) (or MDO as the area may require) in the Sulphur Emission Controlled Areas (SECAs) as stipulated in Marpol Annex VI and/or zones regulated by regional and/or national authorities such as, but not limited to, the EU and the US Environmental Protection Agency. Owners undertake that they will comply with any worldwide regional and international regulations in regards to bunker quality, bunker specifications, supply and any technical, mechanical issue throughout the duration of the time charter.

 

(b) Charterers will ensure and arrange for the supply of sufficient LSFO or MDO, at all times necessary to trade in SECA. Any time lost or deviation as a result of supplying or waiting for supply of such fuels shall be for the Charterers account and shall not be considered off-hire and any and all expenses shall be for Charterers account.

 

(c) Charterers shall not otherwise be liable for any loss, delay, fines, costs or expenses arising or resulting from Owners’ breach of its obligations under this clause 104 and/or non-compliance with bunker regional and international regulations or the vessel’s failure to comply with Regulations 14 and 18 of Marpol Annex VI, which shall be for Owners account.

 

105. Gulf Of Aden and Indian Ocean Clause.

 

Please refer to clauses 14.4 and 14.5 of the Pool Agreement for the vessel.

 

106. Fame Clause.

 

[DELETE]

 

107.  Breach of Warranty Clause.

 

Should Owners be in breach of any of their warranties or representations under this charter, Charterers may put Owners on notice. In the absence of any express provision relating to such specific breach in this charter, Owners have 30 days thereafter to rectify the breach, failing which the vessel will be considered as off-hired. If such an offhire continues for another 10 days, Charterers shall have the option to terminate the CP without penalty to any party.

 

108. Vegoil Cargoes - Load over the top.

 

[DELETE]

 

109. Vegetable Oils Carriage.

 

[DELETE]

 

110. Switching of bills of lading.

 

Charterers shall have the option of switching bills of lading. The procedure will be as below:

 

a.                            Charterers to confirm that full set of first original bills of lading which are to be re-issued are in Charterers’ custody;

b.                            The full set of the first original bills of lading (full set 3/3) are to be marked ‘null and void’ and sent by fax/email to Owners;

c.                             The original cancelled bills of lading are to be couriered to Owners;

d.                            Specimens of the new bills of lading are to be faxed to Owners for their comments/approval;

e.                             upon receipt by Owners’ representative at the Charterers’ requested port of the full and complete set of relevant original cancelled bills of lading, Owners will then revert with their written authorisation for Charterers to be issued a new set of original bills of lading, in accordance with the specimen faxed copy.

 

 

111. Storage Clause.

 

Charterers shall have the option to instruct the vessel to remain idle, at a safe place, at anchor or drifting for a continuous period not exceeding 180 days. If this option is exercised, any bottom cleaning due to excessive fouling required will be for Charterers account. Furthermore if this option is exercised, Charterers shall reimburse Owners for hull cleaning but only if the anti-fouling paint cycle is current and not overdue.

 

112. Vessel Inspection Clause.

 

(a) The on-hire survey shall be held at the last port of call prior to delivery to Charterers. The off-hire survey shall be held at the last port of call prior to redelivery to Owners. The costs of both surveys shall be split fifty/fifty (50/50) between Owners and Charterers and shall be conducted by an independent surveyor acceptable to both parties.

 

(b) In addition to the joint on-hire/off-hire surveys and further to their rights of inspection as set out elsewhere in this Charter, Charterers’ right to make such inspection of the vessel as they may consider necessary includes but is not limited to the right to place on board the vessel an inspector, surveyor and/or representative to inspect and/or test:

 

(i) the vessel’s hull, machinery and equipment and living spaces;

 

(ii) the vessel’s operational procedures both in port and at sea; and

 

(iii) the vessel’s certificates, records and documents,

 

to determine whether Owners are complying in all respects with their obligations and that the vessel is in full compliance with international, national, state or local conventions, laws, regulations and ordinances currently in force or which may come into force in respect of the waters and trading areas to which the vessel may be ordered during the Charter period. Any delay caused by such inspection or test will be for Charterers’ account but any repair or delay by reason of Owners’ non-compliance will be for Owners’ account.

 

(c) Charterers shall also have the right to require inspection of the vessel’s tanks at loading and/or discharging ports to ascertain the condition of the tanks, the quality of the cargo, water and residues on board. In that respect Charterers’ inspector, surveyor and/or representative has the right to ullage, inspect and take samples from the vessel’s cargo tanks, bunker tanks, void spaces and other non-cargo tanks. Depressurisation of the tanks to permit such inspection and/or ullaging shall be carried out under the supervision of the vessel’s Master in accordance with the recommendations in the latest edition of the International Safety Guide for Oil Tankers and Terminals.

 

(d) Charterers are further entitled from time to time during the Charter period on reasonable notice to arrange for their representative(s) to attend Owners’ offices or the offices of Owners’ managers or managing agents as the case may be in order to audit, assess and/or investigate Owners’ safety management system, policies, management, crewing and operations in relation to the services to be provided by the vessel under this Charter.

 

(e) Whether or not Charterers exercise their rights under this clause no action or inaction on their part (including any action or inaction taken following an exercise of a right under this Clause) shall be deemed to be a waiver of their rights and shall be without prejudice to Charterers’ rights and remedies including under clause 3.

 

113. Turkish Customs.

 

If the vessel is discharging cargo in a Turkish port and there is any short or overlanded cargo issue with the Turkish customs, Charterers are to take up the matter with the loadport agents and arrange for the issue of a quantity correcting document or other similar document required by the Turkish customs. All costs, delays etc associated with

 

 

the above to be for Charterers account, provided the vessel has discharged her full cargo and obtained a dry tank certificate.

 

114. EU Advance Cargo Declaration Clause.

 

(a) If the vessel loads cargo in any EU port or place destined for a port or place outside the EU or loads cargo outside the EU destined for an EU port or place, Charterers shall comply with the current EU Advance Cargo Declaration Regulations (the Security Amendment to the Community Customs Code, Regulations 648/2005; 1875/2006; and 312/2009) or any subsequent amendments thereto and shall undertake the role of carrier for the purposes of such regulations and in their own name, time and expense shall:

 

(i) Have in place an EORI number (Economic Operator Registration and Identification);

 

(ii) Provide Owners with a timely confirmation of (i) above as appropriate; and

 

(iii) Submit an ENS (Entry Summary Declaration) cargo declaration electronically to the EU Member States’ Customs and provide the Owners at the same time with a copy thereof.

 

(b) Charterers assume liability for and shall indemnify, defend and hold harmless Owners against any loss and/or damage whatsoever (including consequential loss and/or damage) and/or any expenses, fines, penalties and all other claims of whatsoever nature, including but not limited to legal costs, arising from Charterers’ failure to comply with any of the provisions of sub-clause (a). Should such failure result in any delay then, notwithstanding any provision in this Charter Party to the contrary, the Vessel shall remain on hire.

 

(c) The assumption of the role of carrier by Charterers pursuant to this Clause and for the purpose of the EU Advance Cargo Declaration Regulations shall be without prejudice to the identity of carrier under any bill of lading, other contract, law or regulation.

 

115. Dry Docking Clause.

 

(a) No drydocking shall be undertaken by the Owners during the period of this Charter Party unless mutually agreed, unless the drydocking is necessary to maintain vessel’s seaworthiness, in which case the vessel shall be off-hire from the time vessel received free pratique on arrival, if in ballast, or upon completion of discharge of cargo, if loaded, until the vessel is again ready for service and presented at the Charterers’ discharging and/or loading place.

 

In case of drydocking at a port other than where the vessel is to load, discharge or bunker under the Charterers’ orders the following time and bunkers shall be deducted from hire:

 

Total time and bunkers including repair, port call for the actual voyage from last port of call under the Charterers’ orders to the next port of call under the Charterers’ orders less theoretical voyage time and bunkers for the direct voyage from said first port of call to said next port of call. Theoretical voyage will be calculated on the basis of the sea buoy distance at the warranted speed and consumption.

 

(b) In the event that gas freeing of certain tanks is required in connection with drydocking, the Charterers’ will reimburse Owners for a maximum of 48 hours towards the additional time of gas freeing to the standard required for entry into drydock for cleaning and painting the hull. Any time spent for such gas freeing in excess of 48 hours to be for Owners account. Such gas freeing time commences when the vessel is released to the Owners for the purposes mentioned in this clause and terminates when the tanks are gas-freed to the above required standard. For the avoidance of doubt, all fuel consumed and related gas-freeing expenses shall be for Owners account.

 

 

(c) Charterers and Owners to mutually cooperate for economic dry docking of the vessel. Owners to provide minimum 90 days advance notice of any drydocking while Charterers to make best endeavours to bring the vessel to a trading range where drydocking can be undertaken in a shipyard suitable for Owners’ requirements.

 

116. Insolvency of Owners.

 

In the event of the potential application of both, or a conflict between, admiralty and insolvency/ bankruptcy jurisdiction, the parties expressly agree that admiralty jurisdiction shall pre-empt insolvency/ bankruptcy jurisdiction with respect to the rights and obligations of the parties under this Charter, and with respect to enforcing maritime lien or attachment rights. In the event that Owners, its parent or affiliated companies file for insolvency / bankruptcy protection, the parties expressly agree that this Charter and any and all liens that Owners otherwise possess with respect to bunkers and cargo terminate, and ownership interest reverts to Charterers at 0001 hours on the date of such filing. In that event, Owners remain a bailee of the bunkers and cargo, and as such are obligated to safely discharge same into Charterers custody. Owners also stipulate that Charterers are entitled to recover possession of the bunkers and cargo for purposes of Admiralty Supplemental Rule D or other equivalent legislation or regulation in any other jurisdiction.

 

117.  Sanctions Clause.

 

Owners represent, warrant, guarantee and undertake that:

 

(a)                                 Owners are not a target of Sanction or a Sanctioned Entity;

(b)                                 the vessel is not a target of Sanction or a Sanctioned Entity; and

(c)                                  to the best of their knowledge, after having made due enquiries, none of the operational manager, the technical manager nor any owners above the Owners in the chartering chain of the vessel (if applicable), nor the registered owner nor the ultimate beneficial owners of the vessel are Sanctioned Entities or a target of Sanction.

 

For the purposes of this clause 117:

 

“Sanction” means any sanction, regulation, statute, official embargo measures or any ‘specially designated nationals’ or ‘blocked persons’ lists, or any equivalent lists maintained and imposed by the United Nations, the European Union, the United States Department of Treasury’s Office of Foreign Assets Control. the United States Department of State or any replacement or other regulatory body enforcing economic and trade sanctions legislation in such countries or by any supranational or international governmental organization; and

 

“Sanctioned Entity” means any entity, being an individual, corporation, company, vessel, association or government, who or which:

 

(x) is target of a Sanction; or

 

(y) is subject to a sanction or is directly or indirectly owned by any entity who is subject to a Sanction.

 

Notwithstanding anything to the contrary herein, nothing in this Charter is intended, and nothing herein should be interpreted or construed, to induce or require Charterers to act in any manner (including failing to take any actions in connection with a transaction) which is inconsistent with or prohibited under any Sanction.

 

In the event it is or becomes unlawful under the laws of any jurisdiction for Charterers in their respective judgment to perform any of their obligations under this Charter by reason of the provisions of this clause 117 or in the event that the Owners and/or the

 

 

vessel become the target of Sanction or become a Sanctioned Entity, Charterers may immediately terminate the Charter and redeliver the vessel forthwith, without incurring any liability.

 

118. Ebola Clause.

 

(a) If the Vessel proceeds to or through any port, place, area or zone, or any waterway or canal (hereinafter called an “Area”) exposed to the risk of Ebola the Owners shall have the liberty, but not the obligation:

 

(i) to take reasonable preventative measures to protect the Vessel, her crew and cargo including but not limited to furnishing the crew with necessary personal protective gear at charterers time and cost, (PPG) as follows:

 

1.                                      Sufficient disposable Tyvek coveralls

2.                                      Antibacterial face masks

3.                                      Disposable shoe covers

4.                                      Nitrile or latex gloves

5.                                      Antibacterial wash

6.                                      Remote-sensing infrared thermometer

7.                                      Disposable dining utensils

8.                                      Additional food for stevedores

 

(ii) to comply with the orders, directions or recommendations of any underwriters who have the authority to give the same under the terms of the insurance;

 

(iii) to comply with all orders, directions, recommendations or advice (including all updates to such orders, directions, recommendations or advice) given by the Government of the Nation under whose flag the Vessel sails, or other Government to whose laws the Owners are subject, or any other Government, body or group, including military and/or health authorities, whatsoever acting with the power to compel compliance with their orders or directions. Where such orders, directions, and recommendations vary, Owners shall, if they chose to comply with them, be at liberty, acting reasonably, to decide which orders, directions, and recommendations, if any, they comply with; and

 

(iv) to comply with the terms of any recommendation of the World Health Organization and/or the United States National Institute of Health Center for Disease Control, the effective orders of any other Supranational body which has the right to issue and give the same, and with national laws aimed at enforcing the same to which the Owners are subject, and to obey the recommendations, orders or directions of those who are charged with their enforcement. Where such orders, directions, and recommendations vary, Owners shall, if they chose to comply with them, be at liberty, acting reasonably, to decide which orders, directions, and recommendations, if any, they comply with.

 

(b) Costs and hire

 

(i) If the Vessel proceeds to or through an Area where, due to risk of Ebola, additional costs will be incurred including but not limited to preventative measures to avoid Ebola, such directly related, documented and reasonable costs which are approved in advance by the Charterers shall be for the Charterers’ account. Any time and expenses incurred waiting for quarantine or at the load/discharge port(s) and or used in taking measures to minimise risk in both cases up to 21 days after the vessel’s arrival, shall be for the Charterers’ account;

 

(ii) If the Owners become liable under the terms of employment to pay to the crew any bonus or additional wages in respect of sailing into an area which is dangerous in the manner defined by the said terms, then any bonus or additional wages paid in accordance with the International Transport Workers’ Federation and the International

 

 

Bargaining Forum framework agreement shall be reimbursed to the Owners by the Charterers;

 

(iii) If the underwriters of the Owners’ insurances require additional premiums, or additional insurance cover is necessary, because the Vessel proceeds to or through an Area exposed to risk of Ebola, then such additional insurance costs shall be reimbursed by the Charterers to the Owners;

 

(iv) Owners must submit all reimbursement and expense claims together with all required supporting documents under this clause to Charterers within one (1) month after the completion of final discharge of the relevant voyage otherwise Owners’ claim shall be time-barred under this clause. All payments arising under sub-clause (b) shall be settled within fifteen (15) days of receipt of Owners’ supported invoices.

 

(c) Notwithstanding the terms of clause 21, hire shall be paid for time lost from Ebola including any time lost owing to loss of or sickness to the Master, Officers, crew or passengers from Ebola PROVIDED that no hire shall be payable in respect of any time lost due to the action of the Crew in refusing to proceed to a place where there has been any actual, threatened or reported cases of Ebola. Such delay shall be limited to seven (7) running days for Charterer’s account. If any crew is found to have contracted Ebola any and all expenses, including death benefits due under the collective bargaining agreement (CBA) shall be for the account of the Charterers.

 

(d) If the Vessel is affected or detained by reason of suspected or actual Ebola in the load/discharge port Owners shall keep the Charterers closely informed of the efforts made to have the Vessel released.

 

 

	
 
    	
 
    	
 
    
	
GMR STRENGTH LLC
    	
 
    	
V8 POOL INC
    

 

END OF CHARTER PARTY TERMS AND CONDITIONS

 

 

APPENDIX 3.2

 

TIME CHARTER PARTY

 

[NOT APPLICABLE]

 

THE FOLLOWING FIXTURE CONCLUDED AS PER DETAILS BELOW:

 

	
CHARTER PARTY DATE:
    	
[     ]
    
	
 
    	
 
    
	
DISPONENT OWNER:
    	
[   ]
    
	
 
    	
 
    
	
CHARTERERS:
    	
V8 POOL INC.
    
	
 
    	
 
    
	
VESSEL:
    	
[   ]
    
	
 
    	
 
    
	
HIRE RATE:
    	
Zero Hire but without prejudice to V8 Pool Inc’s obligation to pay   distributions to the Disponent Owner in accordance with clause 8 of the Pool   Agreement for the Vessel.
    
	
 
    	
 
    
	
LAYCAN:
    	
[    ]
    

 

All other terms and conditions as per head tcp dated [                    ] between [    ]and [                ] (as attached) with logical amendments.

 

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Disponent owner
    	
 
    	
Charterers
    

 

30Exhibit 10.154

 

	
NORDEA   BANK FINLAND PLC, NEW YORK BRANCH
   437 Madison Avenue, 21st Floor
   New York, New York 10022
    

 

	
CITIBANK,   N.A.
   390 Greenwich Street
   New York, New York 10013
    	
 
    	
DNB MARKETS, INC.
    DNB CAPITAL LLC
   200 Park Avenue, 31st Floor
   New York, New York 10166

 
    
	
DVB   BANK SE
   Platz der Republik 6
   0325 Frankfurt, Germany
    	
 
    	
SKANDINAVISKA   ENSKILDA BANKEN AB (PUBL)
   Kungsträdgårdsgatan 8,
   106 40, Stockholm, Sweden
    

 

CONFIDENTIAL

 

June 12, 2015

 

Gener8 Maritime, Inc. (f/k/a General Maritime Corporation)
 299 Park Avenue

New York, New York 10171-0002

 

Attention:  Leonidas J. Vrondissis, Chief Financial Officer and Executive Vice President

 

Re:                             Commitment Letter — up to $1,912,491,200 of Senior Secured Credit Facilities

 

Ladies and Gentlemen:

 

You have informed Nordea Bank Finland plc, New York Branch (“Nordea”), Citi (as defined below), DNB Markets, Inc. (“DNB Markets”), DNB Capital LLC (“DNB Lender”), DVB Bank SE (“DVB”), and Skandinaviska Enskilda Banken AB (publ) (“SEB” and together with Nordea, Citi, DNB Markets and DVB, the “Mandated Lead Arrangers”, “we” or “us”) that Gener8 Maritime, Inc. (f/k/a General Maritime Corporation), a Marshall Islands corporation (the “Parent” and, together with its subsidiaries and affiliates, the “Group”), intends to (A) refinance all existing indebtedness of the Parent and its subsidiaries pursuant to (x) a senior secured credit agreement in the original principal amount of $508,977,537 dated as of May 17, 2012 (as amended) with Nordea as Administrative Agent and (y) a senior secured credit facility in the original principal amount of $273,802,583 dated as of May 17, 2012 (as amended) with Nordea as Administrative Agent (together, the “Existing Credit Agreements”) with the proceeds of the Commercial Credit Facility (as defined below); and (B) allow certain of its wholly-owned subsidiaries to incur indebtedness pursuant to (x) the Sinosure Credit Facility (as defined below) and (y) the Korean ECA Credit Facility (as defined below and, together with the Commercial Credit Facility and the Sinosure Facility, the “Senior Secured Credit Facilities”).  The transactions contemplated hereby are collectively referred to herein as the “Transactions”.

 

 

For the purposes of this Commitment Letter (as defined below) (a) “Citi” means Citibank N.A., Citigroup Global Markets Limited, Citigroup Global Markets Inc., Citicorp USA, Inc., Citicorp North America, Inc. and/or any of their affiliates as may be appropriate to consummate the transactions contemplated herein; (b) “Commercial Credit Facility” means a senior secured credit facility up to an amount and on the terms and conditions set forth in the term sheet attached hereto as Annex I (the “Term Sheet”); (c) “Sinosure Credit Facility” means a delayed-draw senior secured credit facility up to an amount and on the terms and conditions set forth in the Term Sheet; and (d) “Korean ECA Credit Facility” means a delayed-draw senior secured credit facility up to an amount and on the terms and conditions set forth in the Term Sheet, to include (i) a tranche (the “KEXIM Tranche”), to be provided by the Export-Import Bank of Korea/Korean Eximbank (“KEXIM”), (ii) a tranche (the “KEXIM Guarantee Tranche) to be funded by certain lenders to be agreed in consultation with the Joint Global Co-ordinators (the “ECA Lenders”) and secured by a 100% credit guarantee from KEXIM; (iii) a tranche (the “K-SURE Covered Tranche”) to be funded by the ECA Lenders and secured by a 95% comprehensive risk insurance from the Korea Trade Insurance Corporation (“K-SURE”); and (iv) a tranche (the “Korean Commercial Tranche”) to be provided by certain lenders to be agreed in consultation with the Mandated Lead Arrangers (the “Commercial Lenders”).  The parties hereto acknowledge and agree that the facility amounts provided in the Term Sheet for each of the Senior Secured Credit Facilities and tranches listed above reflect contingent extras (in addition to the contract price) and current market values for each Collateral Vessel (as defined in the Term Sheet).  The Borrowers (as defined in the Term Sheet) do not expect to exercise their option for every extra item for every Collateral Vessel and market values for the Collateral Vessels will fluctuate.  Accordingly, the Borrowers expect that the aggregate final facility amounts for all Senior Secured Credit Facilities will be less than the aggregate of the facility amounts currently set forth in the Term Sheet.

 

Please note that those matters that are not covered or made clear herein (this commitment letter, together with the Term Sheet, the “Commitment Letter”), the arrangement fee letter dated as of the date hereof among the Mandated Lead Arrangers and the Parent (the “Arrangement Fee Letter”) or any other fee letter dated on or about the date hereof and relating to the Transactions (together with the Arrangement Fee Letter, the “Fee Letters” and, together with the Commitment Letter, the “Commitment Documents”) are subject to mutual agreement of the parties hereto.  The terms and conditions of the Commitment Documents may be modified only in writing signed by each of the parties hereto.

 

1.                                      Commitment.

 

Subject to the terms and conditions set forth in the Commitment Documents, each of Nordea, Citi, DNB Lender, DVB and SEB (each an “Initial Lender” and together, the “Initial Lenders”), is pleased to confirm its (or its affiliate’s) commitment to provide a portion of, the Commercial Credit Facility and the Korean Commercial Tranche (together, the “Commercial Facilities”) as set out below (the “Commercial Commitments”), with such Commercial Commitments to be allocated pro rata among the Commercial Facilities (except as otherwise agreed between the Administrative Agent and the relevant Initial Lender):

 

2

 

	
Initial Lender
    	
 
    	
Commercial Commitment
    	
 
    
	
Nordea
    	
 
    	
$
    	
150,000,000
    	
 
    
	
Citi
    	
 
    	
$
    	
150,000,000
    	
 
    
	
DNB Lender
    	
 
    	
$
    	
150,000,000
    	
 
    
	
DVB
    	
 
    	
$
    	
150,000,000
    	
 
    
	
SEB
    	
 
    	
$
    	
150,000,000
    	
 
    

 

In addition, subject to the terms and conditions set forth in the Commitment Documents (a) each Mandated Lead Arranger is pleased to confirm its agreement to act as a lead arranger and bookrunner for the Commercial Facilities; (b) Nordea is pleased to confirm its commitment to act as sole administrative agent (in such capacity, the “Administrative Agent”) and collateral agent (in such capacity, the “Collateral Agent”) for the Senior Secured Credit Facilities; (c) Citi is pleased to confirm its commitment to act as agent for the ECAs in respect of the Sinosure Credit Facility and the Korean ECA Credit Facility (in such capacity, the “ECA Agent”); and (d) each of Nordea and Citi is pleased to confirm its commitment to act as a global co-ordinator in respect of the Senior Secured Credit Facilities (each of Nordea and Citi, in such capacity, the “Joint Global Co-ordinator” and, together, the “Joint Global Co-ordinators”).  The Joint Global Co-ordinators, Mandated Lead Arrangers, Initial Lenders, Administrative Agent, Collateral Agent and ECA Agent are herein collectively referred to as the “Commitment Parties”.

 

Nothing herein shall constitute an agreement by any Commitment Party to provide a financing commitment in respect of the Sinosure Credit Facility, the KEXIM Tranche, the KEXIM Guarantee Tranche or the K-SURE Covered Tranche.

 

The obligations of the Commitment Parties under this Commitment Letter are several but not joint.  No Commitment Party is responsible for the obligations of any other Commitment Party.  The failure by a Commitment Party to exercise any rights hereunder shall not prejudice the rights of any other Commitment Party hereunder.

 

Each Initial Lender reserves the right, in its sole discretion, to assign its commitment hereunder to any of its affiliates, and any office or branch of any of its affiliates, as it deems appropriate to consummate the transactions contemplated hereby.  The commitment of the each Initial Lender under this Commitment Letter replaces in its entirety the commitment of such Initial Lender provided to Nordea in the Commitment Advice dated June 10, 2015.

 

2.                                      Titles and Roles.

 

It is agreed that Nordea will have “left” placement in all marketing materials or other documentation used in connection with the Commercial Facilities and will have the role and responsibilities conventionally associated with such “left” placement.  The parties hereto understand and agree, between themselves, that each Mandated Lead Arranger shall be entitled to receive league table credit for acting as a Mandated Lead Arranger.

 

You agree that no other agents, co-agents or arrangers will be appointed, no other titles will be awarded and no compensation (other than that expressly contemplated by this Commitment Letter) will be paid in connection with the Senior Secured Credit Facilities unless the Joint Global Co-ordinators shall so agree, although the Joint Global Co-ordinators shall be permitted to designate (after consultation with you) one or more Lenders as agents, co-agents or

 

3

 

co-arrangers, as the case may be, with respect to the Senior Secured Credit Facilities, which Lenders shall have such titles as may be determined by the Joint Global Co-ordinators (after consultation with you).

 

3.                                      Syndication.

 

The Mandated Lead Arrangers reserve the right, prior to and/or after the execution of the definitive Credit Documentation, to syndicate all or part of the Commercial Commitments (such syndication hereafter referred to as the “Syndication”) to banks, financial institutions and other institutional lenders (the “Other Lenders” and together with the Initial Lenders, the “Lenders”).  All aspects of the Syndication, including, without limitation, timing, potential syndicate members to be approached, titles and allocations shall be determined by (and coordinated through) the Joint Global Co-ordinators, in consultation with you.  It is the intention of the parties to this Commitment Letter that the secondary Syndication of the Commercial Commitments shall be completed prior to October 31, 2015.

 

Until the date that is the earlier of (a) three (3) months after the Closing Date and (b) the date on which a Successful Syndication (as defined in the Arrangement Fee Letter) is achieved (such earlier date, the “Syndication Date”), you agree to actively assist and cooperate (and to use your commercially reasonable efforts to cause all necessary persons to assist and cooperate) with the Joint Global Co-ordinators in connection with the Syndication.  Such assistance shall include, without limitation, (a) using your commercially reasonable efforts to ensure that the syndication efforts benefit from your existing lending and investment banking relationships; (b) facilitating direct contact between, on the one hand, your senior officers, representatives and advisors and, on the other hand, the proposed Lenders, at times and places reasonably requested by the Joint Global Co-ordinators, (c) providing the Joint Global Co-ordinators and any Lenders, promptly upon request, with all information reasonably deemed necessary by the Joint Global Co-ordinators or any Lender to successfully complete Syndication, including, but not limited to, (i) an information package for the Senior Secured Credit Facilities and other marketing materials for delivery to potential syndicate members and participants and (ii) projections and all information prepared by you or your affiliates or advisors relating to the Transactions; and (d) hosting, with the assistance of the Joint Global Co-ordinators, of one or more meetings and/or conference calls with prospective Lenders at such times and places as the Joint Global Co-ordinators may reasonably request.

 

Until the Syndication Date, you and your subsidiaries shall each agree to refrain from the offering, placement or arrangement of any debt securities or any other bank financings (including refinancings and renewals of bank debt), other than (i) the Sinosure Credit Facility, the KEXIM Tranche, the KEXIM Guarantee Tranche and the K-sure Covered Tranche and (ii) such other debt arrangements as shall be disclosed to the Mandated Lead Arrangers prior to the date hereof or otherwise approved by the Mandated Lead Arrangers.

 

4.                                      Other Services.

 

Subject to confidentiality limitations, nothing contained herein shall limit or preclude any Mandated Lead Arranger or any of its affiliates from carrying on any business with, providing banking or other financial services to, or from participating in any capacity, including as an equity investor, in any party whatsoever, including, without limitation, any competitor,

 

4

 

supplier or customer of you or any of your affiliates, or any other party that may have interests different than or adverse to such parties.

 

You acknowledge and agree that each Mandated Lead Arranger: (a) may be providing debt financing, equity capital or other services (including financial advisory services) to other companies with which you or your affiliates may have conflicting interests regarding the Transactions and otherwise; (b) may act, without violation of its contractual obligations to you, as it deems appropriate with respect to such other companies; and (c) has no obligation in connection with the Transactions to use, or to furnish to you or your affiliates or subsidiaries, confidential information obtained from other companies or entities.  The Mandated Lead Arrangers shall use confidential information obtained from you or your affiliates by virtue of the Transactions or its other relationships with you solely for the purpose contemplated by this Commitment Letter and shall not furnish any such information to any other companies or entities.

 

In connection with all aspects of the Transactions, you acknowledge and agree that: (a) the Transactions and any related arranging or other services contemplated in this Commitment Letter is an arm’s-length commercial transaction between you and your affiliates, on the one hand, and the Mandated Lead Arrangers, on the other hand, and you are capable of evaluating and understanding and understand and accept the terms, risks and conditions of the Transactions; (b) in connection with the process leading to the Transactions, each Mandated Lead Arranger is and has been acting solely as a principal and not as a financial advisor, agent or fiduciary, for you or any of your affiliates, stockholders, creditors or employees or any other party; (c) the Mandated Lead Arrangers have not assumed nor will they, singly or together, assume an advisory, agency or fiduciary responsibility in your or your affiliates’ favor with respect to any of the Transactions or the process leading thereto (irrespective of whether any Mandated Lead Arranger has advised or is currently advising you or your affiliates on other matters) and the Mandated Lead Arrangers have no obligation to you or your affiliates with respect to the Transactions except those obligations expressly set forth in this Commitment Letter; (d) the Mandated Lead Arrangers and their respective affiliates may be engaged in a broad range of transactions that involve interests that differ from yours and your affiliates and the Mandated Lead Arrangers shall not have any obligation to disclose any of such interests; and (e) the Mandated Lead Arrangers have not provided any legal, accounting, regulatory or tax advice with respect to any of the Transactions and you have consulted your own legal, accounting, regulatory and tax advisors to the extent you have deemed appropriate.  You hereby waive and release, to the fullest extent permitted by law, any claims that you may have as of the date hereof against each of the Mandated Lead Arrangers with respect to any breach or alleged breach of agency or fiduciary duty.

 

Each Mandated Lead Arranger reserves the right to employ the services of its affiliates in providing services contemplated by this Commitment Letter and to allocate, in whole or in part, to its affiliates certain fees payable to such Mandated Lead Arranger in such manner as it and its affiliates may agree in their sole direction.  You acknowledge that the Mandated Lead Arrangers may share with any of their respective affiliates, and such affiliates may share with such Mandated Lead Arranger, any information related to the Transactions, you and the Borrowers (and your and their respective affiliates), or any of the matters contemplated hereby.  You also acknowledge that the Mandated Lead Arrangers do not have any obligation to use in 

 

5

 

connection with the Transactions, or to furnish to you, confidential information obtained by them from any third party.

 

5.                                      Representations and Warranties; Information.

 

You represent, warrant and covenant that to the best of your knowledge (i) no written information which has been or is hereafter furnished by you or on your behalf in connection with the Group or the Transactions and (ii) no other information given at information meetings for potential Syndicate members and supplied or approved by you (such written information and other information being referred to herein collectively as the “Information”) taken as a whole and as supplemented from time to time contained (or, in the case of Information furnished after the date hereof, will contain), as of the time it was (or hereafter is) furnished, any misstatement of fact or omitted (or will omit) as of such time to state any fact necessary to make the statements therein taken as a whole not materially misleading, in the light of the circumstances under which they were (or hereafter are) made; provided that, with respect to Information consisting of statements, estimates and projections regarding the future performance of the Group (collectively, the “Projections”), no representation, warranty or covenant is made other than that the Projections have been (and, in the case of Projections furnished after the date hereof, will be) prepared in good faith based on assumptions believed to be reasonable at the time of preparation thereof, it being understood that any such financial projections are subject to significant uncertainties and contingencies, many of which are beyond your control, and that no assurance can be given that any particular financial projections will be realized, that actual results may differ significantly from the projected results and that such differences may be material.  You agree to supplement the Information and the Projections from time to time until the date of the initial borrowing under each of the Senior Secured Credit Facilities, as reasonably appropriate, so that the representations and warranties in the preceding sentence remain correct.  You understand that, in providing its commitment hereunder and in coordinating the Syndication with you, each of the Mandated Lead Arrangers will use and rely on the Information and the Projections without independent verification thereof.

 

6.                                      Conditions Precedent.

 

Each Mandated Lead Arranger’s and Initial Lender’s willingness to provide its commitment hereunder is subject to the satisfaction or waiver of the following: (a) compliance by you with the terms of the Commitment Letter and the Fee Letters, (b) since December 31, 2014, there not occurring or becoming known to the Mandated Lead Arrangers any condition or circumstance which the Mandated Lead Arrangers or the Required Lenders (as defined in the Term Sheet) shall determine has had, or could reasonably be expected to have, a material adverse effect on the Transactions or on the business, property, assets, condition (financial or otherwise) or prospects of (x) the Collateral Vessels (as defined in the Term Sheet), (y) the Parent, the Borrowers and the Guarantors (as defined in the Term Sheet) taken as a whole or (z) the Group taken as a whole (each, a “Material Adverse Effect”); (c) the Mandated Lead Arrangers not becoming aware (whether as a result of their due diligence analyses and review or otherwise) after the date hereof of any information not previously known to the Mandated Lead Arrangers which is materially negative information with respect to the Transactions or the business, property, assets, condition (financial or otherwise) or prospects of the Collateral Vessels, the Parent, the Borrowers and the Guarantors taken as a whole, or the Group taken as a whole, or which is inconsistent in a material adverse manner with any such information or other matter 

 

6

 

disclosed to the Mandated Lead Arrangers prior to the date hereof, whether prior to or after the date of the making of any initial loans under any of the Senior Secured Credit Facilities; (d) in the case of the Korean Commercial Tranche, the Parent and the applicable Borrower having obtained commitments in respect of the KEXIM Tranche, KEXIM Guarantee Tranche and K-SURE Covered Tranche; (e) in the case of the Commercial Facilities, the Parent and the applicable Borrower having obtained additional commitments aggregating to at least $100,000,000; (f) unless such Initial Lender otherwise agrees, on the Closing Date, no Initial Lender shall be the single largest Lender in the Commercial Credit Facility; (g) detailed projected consolidated financial statements of the Borrower and its subsidiaries for at least the three fiscal years ending after the Closing Date (as defined in the Term Sheet), which projections shall (x) reflect the forecasted consolidated financial condition of Borrower and its subsidiaries after giving effect to the Transaction and the related financing thereof and (y) be prepared and approved by the Borrower, (h) the other conditions set forth or referred to in the Conditions Precedent section of the Term Sheet and (i) the negotiation, execution and delivery of Credit Documentation for the Senior Secured Credit Facilities by the Parent, the Borrowers and each Guarantor reflecting and consistent with the terms and conditions set forth in the Term Sheet and otherwise reasonably satisfactory to the Parent and the Lenders and the satisfaction or waiver of the other conditions precedent contained therein.

 

7.                                      Expenses; Indemnification.

 

To induce the Commitment Parties to issue this Commitment Letter and to commence their coordination of the syndication efforts with you, you hereby agree that all fees and expenses (including the reasonable fees, value-added tax and expenses of counsel (including counsels to the Mandated Lead Arrangers identified in the Term Sheet and any local counsel in any relevant jurisdiction) and consultants and travel expenses) of the Commitment Parties and their respective affiliates arising in connection with this Commitment Letter and in connection with the Transactions and other transactions described herein (including in connection with our due diligence and Syndication efforts) shall be for your account (and that you shall from time to time upon request from the Commitment Parties reimburse them and their affiliates for all such fees and expenses paid by them), whether or not any of the Senior Secured Credit Facilities is made available or definitive credit documents are executed.  You further agree to indemnify and hold harmless the Commitment Parties and each other agent or co-agent (if any) designated by Joint Global Co-ordinators with respect to the Senior Secured Credit Facilities (each, an “Agent”), each Lender and their respective affiliates and each director, officer, employee, representative and agent thereof (each, an “Indemnified Person”) from and against any and all actions, suits, proceedings (including any investigations or inquiries), claims, losses, damages, liabilities or expenses of any kind or nature whatsoever which may be incurred by or asserted against or involve any Agent, any Lender or any other such Indemnified Person as a result of or arising out of or in any way related to or resulting from the Transactions or this Commitment Letter and, upon demand, to pay and reimburse each Agent, each Lender and each other Indemnified Person for any reasonable legal or other out-of-pocket expenses incurred in connection with investigating, defending or preparing to defend any such action, suit, proceeding (including any inquiry or investigation) or claim (whether or not any Agent, any Lender or any other such Indemnified Person is a party to any action or proceeding out of which any such expenses arise); provided, however, that you shall not have to indemnify any Indemnified Person against any loss, claim, damage, expense or liability (i) to the extent same resulted from the gross negligence or willful misconduct of the respective Indemnified Person (as determined by a court 

 

7

 

of competent jurisdiction in a final and non-appealable judgment) or (ii) to the extent resulting from any dispute not involving an act or omission by you or any of your affiliates and solely among Indemnified Persons (other than any claims against any Agent solely in its capacity as Mandated Lead Arranger, Administrative Agent, Joint Global Co-ordinator, arranger or other similar role under the Senior Secured Credit Facilities).  This Commitment Letter is issued for your benefit only and no other person or entity may rely thereon.  Neither the Agents nor any other Indemnified Person shall be responsible or liable to you or any other person for (x) any determination made by it pursuant to this Commitment Letter in the absence of gross negligence or willful misconduct on the part of such person (as determined by a court of competent jurisdiction in a final and non-appealable judgment) or (y) any consequential, indirect or punitive damages which may be alleged as a result of this Commitment Letter or the financing contemplated hereby. You also agree that no Indemnified Person shall have any liability (whether direct or indirect, in contract or tort, or otherwise) to you or your affiliates or to your or their respective equity holders or creditors arising out of, related to or in connection with any aspect of the Transactions, except to the extent such liability is determined in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Person’s gross negligence or willful misconduct.  No Indemnified Person shall be liable to you, your affiliates or any other person for any damages arising from the use by others of materials obtained by electronic means, except to the extent resulting from the gross negligence or willful misconduct of such Indemnified Person (or any of its related parties) in each case, as determined by a final non-appealable judgment of a court of competent jurisdiction.

 

You shall not, without the prior written consent of each Indemnified Person affected thereby (which consent will not be unreasonably withheld), settle any threatened or pending claim or action that would give rise to the right of any Indemnified Person to claim indemnification hereunder unless such settlement (x) includes a full and unconditional release of all liabilities arising out of such claim or action against such Indemnified Person and (y) does not include any statement as to or an admission of fault, culpability or failure to act by or on behalf of any Indemnified Person.

 

If any Indemnified Person is entitled to indemnification or any other rights hereunder with respect to any claim, action, proceeding or investigation brought by a person other than yourself, you shall be entitled to assume the defense of any such claim, action proceeding or investigation with counsel reasonably satisfactory to the Indemnified Person. Upon assumption by you of the defense of any such claim, action proceeding or investigation, the Indemnified Person shall have the right to participate in such claim, action, proceeding or investigation and to retain its own counsel, but you shall not be liable for any legal expenses of other counsel subsequently incurred by such Indemnified Person in connection with the defense thereof unless (i) you have agreed to pay such fees and expenses, (ii) you shall have failed to employ counsel reasonably satisfactory to the Indemnified Person in a timely manner to assume the defense or to pursue the defense diligently, or (iii) the Indemnified Person shall have a reasonable belief that there are actual or potential conflicting interests between you and the Indemnified Persons, including but not limited to situations in which there are one or more legal defense available to the Indemnified Person that are different from or additional to those available to you; provided, however, that you shall not, in connection with any one such claim, action proceeding or investigation or separate but substantially similar claims, action proceedings, or investigations arising out of the same general allegations, be liable for the fees and expenses of more than one separate firm of attorneys at all times for all Indemnified Persons 

 

8

 

(unless in the reasonable belief of such Indemnified Person there is an actual or potential conflict of interest or a conflict on any material issue between the positions of such Indemnified Persons or you otherwise consent), except to the extent that local counsel, in addition to its regular counsel, is required in order to effectively defend against such claim, action proceeding or investigation. You shall not be liable for any settlement of any action or claim effected without your consent (which shall not be unreasonably withheld), and you shall not settle or compromise any action or claim affecting any Indemnified Person without such Indemnified Person’s prior written consent if the settlement or compromise involves any performance by, or adverse admission of, such Indemnified Person.

 

8.                                      Confidentiality.

 

You agree that this Commitment Letter is for your confidential use only and that, unless each of us has otherwise consented, neither its existence nor the terms hereof will be disclosed by you to any person or entity other than your officers, directors (including observers at your board of director meetings), employees, accountants, attorneys and other advisors, and then only on a “need to know” basis in connection with the transactions contemplated hereby and on a confidential basis.  Notwithstanding the foregoing, following your acceptance of the provisions hereof and your return of an executed counterpart of this Commitment Letter and the related Fee Letters to us as provided below (i) you may make public disclosure of the existence and amount of the commitments hereunder and of the identity of any Agent and of the terms of the Term Sheet, (ii) you may file a copy of this Commitment Letter (but not the Fee Letters) in any public record in which it is required by law or by the rules, regulations, schedules and forms of the U.S. Securities and Exchange Commission in connection with any filings made with the U.S. Securities and Exchange Commission and in connection with any initial public offering, private placement, offering of securities, merger, acquisition, disposal or divestment, to be filed and (iii) you may make such other public disclosure of the terms and conditions hereof as, and to the extent, you are required by law, regulation, compulsory legal process or as requested by a governmental authority or pursuant to the order of any court or administrative agency in any pending legal or administrative proceeding, in the opinion of your counsel, to make.  If this Commitment Letter is not accepted by you as provided below, please immediately return this Commitment Letter and any Fee Letter (and any copies hereof) to the undersigned.

 

9.                                      Survival.

 

The terms set forth in this Commitment Letter with respect to expense reimbursement, indemnification, confidentiality and governing law shall survive any termination of this Commitment Letter regardless of whether any definitive form of documentation shall be executed and delivered.

 

The Commitment Documents (and your rights and obligations hereunder and thereunder) shall not be assignable by you to any person or entity without the prior written consent of each party hereto (and any purported assignment without such consent shall be null and void).  The Commitment Documents may not be amended or waived except by an instrument in writing signed by you and us.  Each of the Commitment Documents may be executed in any number of counterparts, each of which shall be an original and all of which, when taken together, shall constitute one agreement.  Delivery of an executed signature page of any Commitment Document by facsimile or electronic transmission (including .pdf) shall be 

 

9

 

effective as delivery of a manually executed counterpart hereof or thereof, as the case may be.  The Commitment Documents shall be governed by, and construed in accordance with, the laws of the State of New York.  The Commitment Documents set forth the entire agreement between the parties as to the matters set forth herein and supersedes all prior communications, written or oral, with respect to the matters herein.

 

EACH OF THE PARTIES HERETO HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY CLAIM, ACTION, SUIT OR PROCEEDING ARISING OUT OF OR CONTEMPLATED BY THIS COMMITMENT LETTER OR THE FEE LETTERS.  YOU HEREBY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE FEDERAL AND NEW YORK STATE COURTS LOCATED IN THE COUNTY OF NEW YORK IN CONNECTION WITH ANY DISPUTE RELATED TO THIS COMMITMENT LETTER, THE FEE LETTERS OR ANY MATTERS CONTEMPLATED HEREBY OR THEREBY.

 

Our willingness to arrange the Commercial Facilities and each of our respective commitments with respect thereto as set forth above will terminate on October 31, 2015 unless on or prior to such date a definitive credit agreement evidencing each of the Senior Secured Credit Facilities (together with related financing and security documentation, the “Credit Documentation”), in form and substance satisfactory to us shall have been entered into and the initial borrowing thereunder shall have occurred.

 

*   *   *

 

10

 

If you are in agreement with the foregoing, please sign and return to the Administrative Agent the enclosed copy of this Commitment Letter, together with a copy of the enclosed Fee Letters, no later than 9:00 a.m., New York time, on June 12, 2015.  Unless this Commitment Letter and the related Fee Letters are signed and returned by the time and date provided in the immediately preceding sentence, this Commitment Letter shall terminate at such time and date.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
NORDEA   BANK FINLAND PLC, NEW YORK BRANCH
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/   John Boesen
    
	
 
    	
 
    	
Name:   John Boesen
    
	
 
    	
 
    	
Title:   Executive Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Martin Lunder
    
	
 
    	
 
    	
Name:   Martin Lunder
    
	
 
    	
 
    	
Title:   Senior Vice President
    

 

Signature page to Gener8 Commitment Letter

 

 

	
 
    	
CITIBANK,   N.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Michael Parker
    
	
 
    	
 
    	
Name: Michael Parker
    
	
 
    	
 
    	
Title: Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

Signature page to Gener8 Commitment Letter

 

 

	
 
    	
DNB   MARKETS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Theodore S. Jadick   Jr.
    
	
 
    	
 
    	
Name: Theodore S.   Jadick Jr.
    
	
 
    	
 
    	
Title: President and   CEO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/ Christian Astrup
    
	
 
    	
 
    	
Name: Christian Astrup
    
	
 
    	
 
    	
Title: Associate   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DNB   CAPITAL LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Cathleen Buckley
    
	
 
    	
 
    	
Name: Cathleen Buckley
    
	
 
    	
 
    	
Title: Senior Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/ Anders Platou
    
	
 
    	
 
    	
Name: Anders Platou
    
	
 
    	
 
    	
Title: Senior Vice   President
    

 

Signature page to Gener8 Commitment Letter

 

 

	
 
    	
DVB   BANK SE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Gill Driscoll
    
	
 
    	
 
    	
Name: Gill Driscoll
    
	
 
    	
 
    	
Title: Senior Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/ Angelique Kounis
    
	
 
    	
 
    	
Name: Angelique Kounis
    
	
 
    	
 
    	
Title: Vice President,   Legal Counsel
    

 

Signature page to Gener8 Commitment Letter

 

 

	
 
    	
SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Bjarte BØe
    
	
 
    	
 
    	
Name: Bjarte BØe
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/ Helene Hellners
    
	
 
    	
 
    	
Name: Helene Hellners
    
	
 
    	
 
    	
Title:
    

 

Signature page to Gener8 Commitment Letter

 

 

Agreed to and Accepted this
 12th day of June, 2015:

 

GENER8 MARITIME, INC.

 

 

	
By:
    	
/s/   L.J. Vrondissis
    	
 
    
	
 
    	
Name:   L.J. Vrondissis
    	
 
    
	
 
    	
Title:   CFO/EVP
    	
 
    

 

Signature page to Gener8 Commitment Letter

 

 

ANNEX I

 

GENER8 MARITIME, INC.

 

UP TO $1,912,491,200 OF SENIOR SECURED CREDIT FACILITIES

 

COMPRISED OF

 

UP TO $581,000,000 COMMERCIAL CREDIT FACILITY

 

UP TO $954,682,300 KOREAN ECA CREDIT FACILITY

 

UP TO $376,808,900 SINOSURE CREDIT FACILITY

 

SUMMARY OF CERTAIN TERMS AND CONDITIONS

 

I.             Parties to the Credit Facilities

 

	
Borrowers:
    	
 
    	
Under each Credit Facility (as defined below), each   holding company (each a “Borrower” and together the “Borrowers”)   which solely owns all of the equity interests of each single purpose company   owning or purchasing a Collateral Vessel (as defined below) being financed   under such Credit Facility.
    
	
 
    	
 
    	
 
    
	
Parent Guarantor:
    	
 
    	
Gener8 Maritime, Inc., a company incorporated   under the laws of the Republic of the Marshall Islands (“Gener8 Maritime”   or the “Parent Guarantor”).
    
	
 
    	
 
    	
 
    
	
Guarantors:
    	
 
    	
Under each Credit Facility, on a joint and several   basis, the Parent Guarantor and any owner of one or more Collateral Vessels   being financed under such Credit Facility and each other subsidiary of the   Parent Guarantor, which owns directly or indirectly an equity interest in any   such company (each a “Guarantor” and together, the “Guarantors”).
    
	
 
    	
 
    	
 
    
	
Mandated Lead Arrangers and Bookrunners:
    	
 
    	
Citibank, N.A. (or any of its affiliates), DNB   Markets, Inc., DVB Bank SE, Nordea Bank Finland Plc, New York Branch and   Skandinaviska Enskilda Banken AB (publ) (collectively, the “Mandated Lead   Arrangers”).
    
	
 
    	
 
    	
 
    
	
Administrative Agent:
    	
 
    	
Nordea (the “Administrative Agent”).
    
	
 
    	
 
    	
 
    
	
Collateral Agent:
    	
 
    	
Nordea (the “Collateral Agent”).
    
	
 
    	
 
    	
 
    
	
Joint Global Co-ordinator:
    	
 
    	
Citi and Nordea (the “Global Co-ordinators”).
    
	
 
    	
 
    	
 
    
	
ECA Agent:
    	
 
    	
Citi (the “ECA Agent”).
    
	
 
    	
 
    	
 
    
	
CEXIM:
    	
 
    	
The Export-Import Bank of China (“CEXIM”).
    

 

1

 

	
KEXIM:
    	
 
    	
The Export-Import Bank of Korea/Korean Eximbank (“KEXIM”).
    
	
 
    	
 
    	
 
    
	
K-sure:
    	
 
    	
Korea Trade Insurance Corporation (“K-sure”).
    
	
 
    	
 
    	
 
    
	
Sinosure:
    	
 
    	
China Export and Credit Insurance Corporation (“Sinosure”).
    
	
 
    	
 
    	
 
    
	
ECAs:
    	
 
    	
CEXIM, Sinosure, KEXIM and K-sure (each an “ECA”,   together the “ECAs”).
    
	
 
    	
 
    	
 
    
	
ECA Lenders:
    	
 
    	
To be determined by Citi and the Administrative   Agent in consultation with KEXIM, K-Sure and Sinosure, as applicable.
    
	
 
    	
 
    	
 
    
	
Commercial Lenders:
    	
 
    	
The Initial Lenders together with a syndicate of   financial institutions to be determined (the “Commercial Lenders”).
    
	
 
    	
 
    	
 
    
	
Lenders:
    	
 
    	
The Commercial Lenders, the ECA Lenders, CEXIM and   KEXIM (the “Lenders”).
    
	
 
    	
 
    	
 
    
	
Hedge Providers:
    	
 
    	
Any of the Initial Lenders or their affiliates (each   a “Hedge Provider” and collectively, the “Hedge Providers”).
    
	
 
    	
 
    	
 
    
	
Finance Parties:
    	
 
    	
The Lenders, any Hedge Provider in respect of any   Secured Hedging Agreement, the Administrative Agent, the Collateral Agent and   the ECA Agent (the “Finance Parties”).
    
	
 
    	
 
    	
 
    
	
Currency:
    	
 
    	
United States Dollars (“$”).
    
	
 
    	
 
    	
 
    
	
Collateral Vessels:
    	
 
    	
The vessels listed as Collateral Vessels in Annex I   — Collateral Vessels.
    

 

II.            Description of the Credit Facilities

 

	
Credit Facilities:
    	
 
    	
Senior   secured credit facilities (each a “Credit Facility” and together the “Credit   Facilities”) in the aggregate principal amount of up to the sum of   (i) $1,912,491,200 plus (ii) the sum of (x) any   capitalized Sinosure Premium under the Sinosure Credit Facility and   (y) any capitalized guarantee/insurance   premiums under the Korean ECA Credit Facility, comprising of the following   credit facilities (to be documented in separate Credit Agreements):
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
A senior secured credit facility in the aggregate   principal amount of up to $581,000,000 (the “Commercial Credit Facility”)   to be provided by the Commercial Lenders.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
A delayed-draw senior secured credit facility in the   aggregate principal amount of up to the sum of (i) $376,808,900 plus   (ii) any capitalized Sinosure Premium (the “Sinosure Credit Facility”)   to
    

 

2

 

	
 
    	
 
    	
 
    	
be provided by CEXIM and certain ECA Lenders and   secured by a 95% comprehensive risk insurance from Sinosure.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii)
    	
A delayed-draw senior secured credit facility in the   aggregate principal amount of up to the sum of (i) $954,682,300 plus (ii) any   capitalized guarantee/insurance premiums under the Korean ECA Credit Facility   (the “Korean ECA Credit Facility”) to be provided as follows:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
a.
    	
An up to $183,776,343 tranche to be provided by   KEXIM (the “KEXIM Tranche”) (equal to 19.25% of the Korean ECA Credit   Facility).
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
b.
    	
An up to the sum of (i) $150,362,462 tranche plus   (ii) any capitalized guarantee/insurance premiums under the KEXIM   Guarantee Tranche to be funded by certain ECA Lenders (the “KEXIM   Guarantee Tranche”) and secured by a 100% credit guarantee from KEXIM   (equal to 15.75% of the Korean ECA Credit Facility).
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
c.
    	
An up to the sum of (i) $334,138,805 tranche plus   (ii) any capitalized guarantee/insurance premiums under the K-SURE   Covered Facility to be funded by ECA Lenders (the “K-SURE Covered Tranche”)   and secured by a 95% comprehensive risk insurance from K-SURE (equal to 35%   of the Korean ECA Credit Facility).
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
d.
    	
An up to $286,404,690 tranche to be provided by the   Commercial Lenders (the “Korean Commercial Tranche”) (equal to 30% of   the Korean ECA Credit Facility).
    

 

III.          The Commercial Credit Facility

 

	
Use of Proceeds:
    	
 
    	
Loans made pursuant to the Commercial Credit   Facility (each a “Loan” and collectively, the “Loans”) shall be   used solely to refinance all existing indebtedness of the Parent Guarantor   and its subsidiaries pursuant to (x) a senior secured credit agreement   in the original principal amount of $508,977,537 dated as of May 17,   2012 (as amended) with Nordea as Administrative Agent and (y) and a   senior secured credit agreement in the original principal amount of $273,802,583   dated as of May 17, 2012 (as amended) with Nordea as Administrative   Agent.
    
	
 
    	
 
    	
 
    
	
Availability:
    	
 
    	
The Loans under the Commercial Credit Facility may   be incurred pursuant to one single drawing on or after the Closing Date in a   manner consistent with the requirements set forth under the heading “Use of   Proceeds” above, provided, however, that such Commercial Loans   shall not exceed the lesser of (i) $581,000,000 and (ii) 60% of the   fair market
    

 

3

 

	
 
    	
 
    	
value of the Existing Vessels (as defined below), on   the Initial Borrowing Date.
    
	
 
    	
 
    	
 
    
	
Borrowing Date:
    	
 
    	
The date on which the drawing of the Loan under the   Commercial Credit Facility occurs (the “Borrowing Date”).
    
	
 
    	
 
    	
 
    
	
Existing Vessels:
    	
 
    	
The 25 tanker vessels (comprising of 7 VLCCs, 11   Suezmaxes, 4 Aframaxes, 2 Panamaxes and 1 Handymax) listed as Collateral   Vessels in Annex I — Collateral Vessels Part A (each an “Existing   Vessel” and collectively, the “Existing Vessels”).
    
	
 
    	
 
    	
 
    
	
Closing Date:
    	
 
    	
The date on which the loan documentation evidencing   the Commercial Credit Facility is entered into (the “Closing Date”).
    
	
 
    	
 
    	
 
    
	
Maturity Date:
    	
 
    	
Loans under the Commercial Credit Facility shall   mature on the date that is 5 years from the Closing Date (the “Maturity   Date”).
    
	
 
    	
 
    	
 
    
	
Scheduled Repayments:
    	
 
    	
The Commercial Credit Facility shall be subject to   20 consecutive quarterly repayments commencing three (3) months after   the Closing Date, each in the amount set forth in a schedule to be agreed and   calculated based on the final loan amount (capped at 60% of fair market   values), provided, however, that the loan profile shall not   exceed (x) 5 year to 0 from the Closing Date until the 2nd anniversary thereof and (y) 8 year to 0   thereafter.
    
	
 
    	
 
    	
 
    
	
Mandatory Prepayments:
    	
 
    	
Upon a sale, total loss or other disposition of any   Existing Vessel, outstanding Loans under the Commercial Credit Facility shall   be required to be repaid in an amount equal to the sum of the then   outstanding principal amount of the Loans under the Commercial Credit   Facility, multiplied by a fraction, the numerator of which is the appraised   value of such Collateral Vessel subject to such sale or loss and the   denominator of which is the aggregate of the appraised value of all Existing   Vessels.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
In addition, upon breach of the Collateral   Maintenance Test (as defined below) for the relevant Borrower with respect to   the Commercial Credit Facility, the relevant Borrower shall within [60] days   thereafter (x) prepay the Commercial Credit Facility and/or (y) post   additional collateral satisfactory to the Commercial Lenders (it being   understood that cash collateral comprising of US Dollars shall be deemed   satisfactory and shall be valued at par), in a total amount sufficient to   become compliant with the Collateral Maintenance Test.
    
	
 
    	
 
    	
 
    
	
Events of Default:
    	
 
    	
Customary for transactions of this nature subject to   customary cure periods (if applicable).
    
	
 
    	
 
    	
 
    
	
Interest rate:
    	
 
    	
The interest rate under the Commercial Credit   Facility will be LIBOR plus the Applicable Margin.
    

 

4

 

	
Applicable Margin
    	
 
    	
The applicable margin shall be 4.25% per annum if   the Parent Guarantor is a private company and LIBOR + 3.75% if the Parent   Guarantor is a publicly listed company on the New York Stock Exchange.
    
	
 
    	
 
    	
 
    
	
Commitment Fee:
    	
 
    	
40% of the Applicable Margin calculated on the   unutilized commitments.
    
	
 
    	
 
    	
 
    
	
Required Majority:
    	
 
    	
The Lenders having the aggregate outstanding   principal amounts and available commitments in excess of 66-2/3% (the “Required   Majority”).
    
	
 
    	
 
    	
 
    
	
Governing Law:
    	
 
    	
The Commercial Credit Facility shall be governed by   the laws of the State of New York.
    
	
 
    	
 
    	
 
    
	
Jurisdiction:
    	
 
    	
The courts of the State of New York sitting in New   York County (Borough of Manhattan) or of the United States for the Southern   District of New York.
    
	
 
    	
 
    	
 
    
	
Lenders’ Legal Counsel:
    	
 
    	
White & Case LLP, New York.
    

 

IV.          The Sinosure Credit Facility

 

	
Use of Proceeds:
    	
 
    	
Loans made pursuant to the Sinosure Credit Facility   (each a “Loan” and collectively, the “Loans”) shall be used   solely to finance, in part, the construction cost of each of the Chinese   Newbuild Vessels (as defined below) and/or may be utilized to reimburse the   relevant Borrower (or the Parent Guarantor or its subsidiaries) for those   payments to the relevant shipyard that have already been made.
    
	
 
    	
 
    	
 
    
	
Availability:
    	
 
    	
Each Loan under the Sinosure Credit Facility may be   incurred pursuant to one single drawing with respect to each Chinese Newbuild   Vessel on the relevant Borrowing Date in a manner consistent with the   requirements set forth under the heading “Use of Proceeds” above, provided,   however, that such Loan shall not exceed the lesser of (x) the   amount set forth opposite the relevant Chinese Newbuild Vessel under the   heading “Maximum Loan Amount” in Annex I — Collateral Vessels, Part B   attached hereto and (y) 60% of the fair market value of such Chinese   Newbuild Vessel, based on appraisals as of a date no earlier than 20 days   prior to the relevant Delivery Date, provided, however, that   the SINOSURE Premium (defined below) may be capitalized and added to   (x) and shall not be included in the calculation of (y).
    
	
 
    	
 
    	
 
    
	
Borrowing Date:
    	
 
    	
The date on which any drawing of a Loan under the   Sinosure Credit Facility occurs (each a “Borrowing Date”).
    
	
 
    	
 
    	
 
    
	
Prepositioning of Loans:
    	
 
    	
If (x) required under the shipbuilding contract   for a Chinese Newbuild Vessel and (y) all customary conditions precedent   have been satisfied, save for such conditions precedent that can only be   satisfied on the relevant Delivery Date, the relevant Borrower or relevant   Guarantor may
    

 

5

 

	
 
    	
 
    	
request that a Loan be prepositioned (each such   Loan, a “Preposition Loan”) with the relevant shipyard’s bank (such   bank to be satisfactory to the Administrative Agent), up to three   (3) business days prior to the relevant Delivery Date, accompanied by   such conditions and release instructions as agreed with the Administrative   Agent. Preposition Loans disbursed from the Administrative Agent shall in   such an event be deposited directly into the relevant shipyard’s bank, where   they will be blocked and not released until (x) a copy of the protocol   of delivery has been presented to the Administrative Agent on the Delivery   Date and (y) all remaining conditions precedent have been satisfied on   the relevant Delivery Date in form and scope satisfactory to the   Administrative Agent, or on such other terms as the Administrative Agent may   agree in its reasonable opinion.
    
	
 
    	
 
    	
 
    
	
Chinese Newbuild Vessels:
    	
 
    	
The 6 VLCCs listed as Collateral Vessels in Annex I   — Collateral Vessels Part B (each a “Chinese Newbuild Vessel” and   collectively, the “Chinese Newbuild Vessels”).
    
	
 
    	
 
    	
 
    
	
Delivery Date:
    	
 
    	
The date a Chinese Newbuild Vessel is delivered to   the relevant Guarantor from the shipyard as set forth under the heading   “Shipyard” in Annex I (each, a “Delivery Date”).
    
	
 
    	
 
    	
 
    
	
Closing Date:
    	
 
    	
The date on which the loan documentation evidencing   the Sinosure Credit Facility is entered into (the “Closing Date”).
    
	
 
    	
 
    	
 
    
	
Maturity Date:
    	
 
    	
Each Loan under the Sinosure Credit Facility shall   mature on the date that is 12 years from the relevant Borrowing Date related   to each relevant Delivery Date (each a “Maturity Date”).
    
	
 
    	
 
    	
 
    
	
Scheduled Repayments:
    	
 
    	
Each Loan under the Sinosure Credit Facility shall   be subject to consecutive equal quarterly repayments commencing three   (3) months after the relevant Borrowing Date related to each relevant   Delivery Date based on a 15 years repayment profile.
    
	
 
    	
 
    	
 
    
	
Mandatory Prepayments:
    	
 
    	
Upon a sale, total loss or other disposition of any   Chinese Newbuild Vessel, outstanding Loans under the Sinosure Credit Facility   related to that Chinese Newbuild Vessel shall be required to be repaid in   full.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
In addition, upon breach of the Collateral   Maintenance Test (as defined below) for the relevant Borrower with respect to   the Sinosure Credit Facility, the relevant Borrower shall within [60] days   thereafter (x) prepay the Sinosure Credit Facility and/or (y) post   additional collateral satisfactory to the Sinosure Credit Facility Lenders   (it being understood that cash collateral comprising of US Dollars shall be   deemed satisfactory and shall be valued at par), in a total amount sufficient   to become compliant with the Collateral Maintenance Test.
    

 

6

 

	
Events of Default:
    	
 
    	
Customary for transactions of this nature subject to   customary cure periods (if applicable), including but not limited to   repudiation/cancellation of the Sinosure insurance policy.
    
	
 
    	
 
    	
 
    
	
Interest Rate:
    	
 
    	
The interest rate under the Sinosure Credit Facility   will be LIBOR + [     ]% per annum (the “Applicable   Margin”).
    
	
 
    	
 
    	
 
    
	
SINOSURE Premium:
    	
 
    	
The insurance premium payable to Sinosure for the   95% risk insurance shall be [     ]%.
    
	
 
    	
 
    	
 
    
	
Commitment Fee:
    	
 
    	
40% of the Applicable Margin calculated on the unutilized   commitments.
    
	
 
    	
 
    	
 
    
	
Required Majority:
    	
 
    	
The Lenders under the Sinosure Credit Facility   having the aggregate outstanding principal amounts and available commitments   in excess of 66-2/3%, however, always, to include approval from   CEXIM and at least one ECA Lender (the “Required Majority”). It should   be understood that CEXIM shall hold [70]% of the Sinosure Credit Facility.
    
	
 
    	
 
    	
 
    
	
Governing Law:
    	
 
    	
The Sinosure Credit Facility shall be governed by   the laws of England.
    
	
 
    	
 
    	
 
    
	
Jurisdiction:
    	
 
    	
The courts of England shall have exclusive   jurisdiction to settle any dispute arising out of or in connection with the   Sinosure Credit Facility and any dispute shall be referred to the London   district court as the court of first instance provided however that, CEXIM or   any ECA Lender shall be prevented from taking proceedings relating to a   dispute in any other courts with jurisdiction.
    
	
 
    	
 
    	
 
    
	
Lenders’ Legal Counsel:
    	
 
    	
Watson, Farley & Williams LLP, Hong Kong.
    

 

V.            The Korean ECA Credit Facility

 

	
Use of Proceeds:
    	
 
    	
Loans made pursuant to the Korean ECA Credit   Facility (each a “Loan” and collectively, the “Loans”) shall be   used solely to finance, in part, the construction cost of each of the Korean   Newbuild Vessels (as defined below) and/or may be utilized to reimburse the   relevant Borrower (or the Parent Guarantor or its subsidiaries) for those   payments to the relevant shipyard that have already been made.
    
	
 
    	
 
    	
 
    
	
Availability:
    	
 
    	
Each Loan under the Korean ECA Credit Facility may   be incurred pursuant to one single drawing (which drawing shall be pro rata   among each tranche) with respect to each Korean Newbuild Vessel on the   relevant Borrower Date in a manner consistent with the requirements set forth   under the heading “Use of Proceeds” above, provided, however,   that such Loan shall not exceed the lesser of (x) the amount set forth   opposite the relevant Korean Newbuild Vessel under the heading “Maximum Loan   Amount” in Annex I — Collateral Vessels, Part B attached hereto and   (y) 60% of the fair market value of such Korean
    

 

7

 

	
 
    	
 
    	
Newbuild Vessel, based on appraisals as of a date no   earlier than 20 days prior to the relevant Delivery Date, provided, however,   that the guarantee/insurance premiums under the Korean ECA Credit Facility   may be capitalized and added to (x) and shall not be included in the   calculation of (y).
    
	
 
    	
 
    	
 
    
	
Borrowing Date:
    	
 
    	
The date on which any drawing of a Loan under the   Korean ECA Credit Facility occurs (each a “Borrowing Date”).
    
	
 
    	
 
    	
 
    
	
Prepositioning of Loans:
    	
 
    	
If (x) required under the shipbuilding contract   for a Korean Newbuild Vessel and (y) all customary conditions precedent   have been satisfied, save for such conditions precedent that can only be   satisfied on the relevant Delivery Date, the relevant Borrower or relevant   Guarantor may request that a Loan be prepositioned (each such Loan, a “Preposition   Loan”) with the relevant shipyard’s bank such bank to be satisfactory to   the Administrative Agent), up to three (3) business days prior to the relevant   Delivery Date, accompanied by such conditions and release instructions as   agreed with the Administrative Agent. Preposition Loans disbursed from the   Administrative Agent shall in such an event be deposited directly into the   relevant shipyard’s bank, where they will be blocked and not released until   (x) a copy of the protocol of delivery has been presented to the   Administrative Agent on the Delivery Date and (y) all remaining   conditions precedent have been satisfied on the relevant Delivery Date in form   and scope satisfactory to the Administrative Agent, or on such other terms as   the Administrative Agent may agree in its reasonable opinion.
    
	
 
    	
 
    	
 
    
	
Korean Newbuild Vessels:
    	
 
    	
The 15 VLCCs listed as Collateral Vessels in Annex I   — Collateral Vessels Part B (each a “Korean Newbuild Vessel” and   collectively, the “Korean Newbuild Vessels”).
    
	
 
    	
 
    	
 
    
	
Delivery Date:
    	
 
    	
The date a Korean Newbuild Vessel is delivered to   the relevant Guarantor from the shipyard as set forth under the heading   “Shipyard” in Annex I (each, a “Delivery Date”).
    
	
 
    	
 
    	
 
    
	
Closing Date:
    	
 
    	
The date on which the loan documentation evidencing   the Korean ECA Credit Facility is entered into (the “Closing Date”).
    
	
 
    	
 
    	
 
    
	
Maturity Date:
    	
 
    	
(x) Each Loan under the KEXIM Tranche, the   KEXIM Guaranteed Tranche and the K-SURE Covered Tranche shall mature on the   date that is 12 years from the relevant Borrowing Date related to each   relevant Delivery Date and (y) each Loan under the Korean Commercial   Tranche shall mature on the date that is 5 years from the Borrowing Date   related to each relevant Delivery Date (each a “Maturity Date”).
    
	
 
    	
 
    	
 
    
	
Scheduled Repayments:
    	
 
    	
Each Loan under the Korean Commercial Tranche shall   be subject to consecutive equal quarterly repayments commencing three   (3) months
    

 

8

 

	
 
    	
 
    	
after the relevant Borrowing Date related to each   relevant Delivery Date based on an overall 15-year repayment profile.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Each Loan under the KEXIM Tranche, the KEXIM   Guaranteed Tranche and the K-Sure Covered Tranche shall be subject to   consecutive equal quarterly repayments commencing three (3) months after   the relevant Borrowing Date related to each relevant Delivery Date based on   an overall 12 year repayment profile.
    
	
 
    	
 
    	
 
    
	
Mandatory Prepayments:
    	
 
    	
Upon a sale, total loss or other disposition of any   Korean Newbuild Vessel, outstanding Loans under the Korean ECA Credit   Facility related to that Korean Newbuild Vessel shall be required to be   repaid in full.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
KEXIM shall have a put option to call for repayments   of the KEXIM Tranche and the KEXIM Guarantee Tranche and K-SURE shall have a   put option to call for repayment on the K-SURE Covered Tranche to be   exercised on the Maturity Date of the Korean Commercial Tranche, if the   Korean Commercial Tranche is not committed to be refinanced/renewed prior to   the date that falls [2] months before the Maturity Date of the Korean   Commercial Tranche. Upon exercise of the above put options, all outstanding   amounts under the KEXIM Tranche, the KEXIM Guarantee Tranche and K-SURE   Covered Tranche must be repaid on the Maturity Date of the Korean Commercial   Tranche.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
In addition, upon breach of the Collateral   Maintenance Test (as defined below) for the relevant Borrower with respect to   the Korean ECA Credit Facility, the relevant Borrower shall within [60] days   thereafter (x) prepay the Korean ECA Credit Facility and/or   (y) post additional collateral satisfactory to the Korean ECA Credit   Facility Lenders (it being understood that cash collateral comprising of US   Dollars shall be deemed satisfactory and shall be valued at par), in a total   amount sufficient to become compliant with the Collateral Maintenance Test.
    
	
 
    	
 
    	
 
    
	
Events of Default:
    	
 
    	
Customary for transactions of this nature subject to   customary cure periods (if applicable), including but not limited to   repudiation/cancellation of the K-sure insurance policy or the KEXIM   guarantee.
    
	
 
    	
 
    	
 
    
	
Interest Rate:
    	
 
    	
The interest rate under the Korean ECA Credit   Facility will be:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
LIBOR + [     ]% per annum   with respect to the KEXIM Tranche;
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
LIBOR +[     ]% per annum   with respect to the KEXIM Guarantees Tranche;
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii)
    	
LIBOR +[     ]% per annum   with respect to the K-SURE Covered Tranche; and
    

 

9

 

	
 
    	
 
    	
(iv)
    	
LIBOR + 2.75% per annum (the “Applicable Margin”)   with respect to the Korean Commercial Tranche.
    

 

	
Guarantee/Insurance   Premiums:
    	
 
    	
The guarantee/insurance   premiums under the Korean ECA Credit Facility will be:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
[     ]% with   respect to the KEXIM Guaranteed Tranche, and
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
[     ]% with   respect to the K-SURE Covered Tranche
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Commitment Fee:
    	
 
    	
40% of the Applicable Margin calculated on the   unutilized commitments.
    
	
 
    	
 
    	
 
    
	
Required Majority:
    	
 
    	
The Lenders under the Korean ECA Credit Facility   having the aggregate outstanding principal amounts and available commitments   in excess of 66-2/3%, however, always, to include approval from   a minimum of one Commercial Lender (the “Required Majority”).
    
	
 
    	
 
    	
 
    
	
Governing Law:
    	
 
    	
The Korean ECA Credit Facility shall be governed by   the laws of the State of New York.
    
	
 
    	
 
    	
 
    
	
Jurisdiction:
    	
 
    	
The courts of the State of New York sitting in New   York County (Borough of Manhattan) or of the United States for the Southern District   of New York.
    
	
 
    	
 
    	
 
    
	
Lenders’ Legal Counsel:
    	
 
    	
Watson, Farley & Williams LLP, Hong Kong.
    

 

VI.          Other Terms Applicable to each Credit Facility

 

	
Guarantees:
    	
 
    	
Each Guarantor shall be required to provide an   unconditional and irrevocable on-demand guarantee of all amounts owing under   each Credit Facility to which it is a party (each a “Guarantee” and   collectively, the “Guarantees”). The Guarantees shall contain terms   and conditions satisfactory to the Lenders and customary for transactions of   this type and shall, to the extent required by the Hedge Providers, also   guarantee, on a subordinated basis, the relevant Borrower’s obligations under   interest rate swaps, foreign currency swaps or similar agreements hedging   each Credit Facility (the “Secured Hedging Agreements”) with a Hedge   Provider. Each Guarantee shall be guarantees of payment and not of   collection.
    
	
 
    	
 
    	
 
    
	
Security:
    	
 
    	
In respect of each Credit Facility (x) all   amounts owing under such Credit Facility, (y) all obligations under such   of the Guarantees entered into in relation to each Credit Facility and   (z) on a subordinated basis the relevant Borrower’s obligations under   any Secured Hedging Agreement with any Hedge Provider in relation to such   Credit Facility will, in each
    

 

10

 

	
 
    	
 
    	
case, be secured by:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
The   Guarantees entered into in relation to such Credit Facility.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)
    	
A   first priority cross-collateralized mortgage over each of the Collateral   Vessels under such Credit Facility (but not the vessels under any other   Credit Facility).
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii)
    	
A   first priority share pledge over all the shares issued by the Borrower and   each Guarantor (other than the Parent Guarantor) which is a party to such   Credit Facility.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iv)
    	
A   first priority assignment of the insurances on the relevant Collateral   Vessels under such Credit Facility.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(v)
    	
A   first priority general assignment of all earnings from the relevant   Collateral Vessels under such Credit Facility.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(vi)
    	
A   first priority pledge of the each Earnings Account in relation to each   Collateral Vessel under the relevant Credit Facility.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(vii)
    	
A   first priority assignment of any time charter contract in excess of [24]   months in relation to each Collateral Vessel under the relevant Credit   Facility.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
All documentation   (collectively referred to herein as the “Security Agreements”) evidencing the   security required pursuant to the immediately preceding paragraphs shall be   in form and substance reasonably satisfactory to the relevant Lenders and   customary for transactions of this type, shall effectively create first   priority security interests in the property purported to be covered thereby,   with such exceptions as are reasonably acceptable to the Administrative Agent   and the relevant Lenders.
    
	
 
    	
 
    	
 
    
	
Earnings Accounts:
    	
 
    	
Each Guarantor that owns a Collateral Vessel shall   open and maintain for the duration of each Credit Facility bank   account(s) with the Security Agent (each an “Earnings Account”).
    
	
 
    	
 
    	
 
    
	
Financial Covenants:
    	
 
    	
The following financial covenants as set forth below   shall apply to the Parent Guarantor and its subsidiaries on a consolidated   basis and shall be measured on a quarterly basis (it is understood that the   Collateral Maintenance Test will apply to each Borrower):
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
Maximum Consolidated Leverage: The   ratio of net Indebtedness to Total Capitalization (defined as net   Indebtedness plus shareholders’ equity) shall be no greater than   (x) 65%, at any time prior to June 30, 2017 and (y) 60%, at   any time thereafter.
    

 

11

 

	
 
    	
 
    	
(ii)
    	
Minimum Consolidated Liquidity:   Cash and cash equivalents shall at all times be no less than the greater of   (x) $50 million and (y) 5% of Total Indebtedness (for the purposes   of determining “cash and cash equivalents” funds on deposit in any Debt   Service Reserve Account (as defined below) may only be included at 50% of par   value), provided, however, that, in all events, unrestricted   cash and cash equivalents shall at no time be less than $25 million.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii)
    	
Interest Coverage Ratio: The ratio   of the Parent Guarantor’s EBITDA to Interest Rate costs, on a trailing 12   months rolling basis, shall be equal to or greater than 2.50 to 1.00.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iv)
    	
Collateral Maintenance Test: The   aggregate fair market value of all Collateral Vessels then acting as security   for such Credit Facility shall be at least:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
a.
    	
135%   of the sum of the then aggregate outstanding principal amount of Loans under   such Credit Facility until the 2nd anniversary of the Closing   Date; and
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
b.
    	
140%   of the sum of the then aggregate outstanding principal amount of Loans under   such Credit Facility from the 2nd anniversary of the Closing   Date and thereafter.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Debt   Service Reserve Account” means any account, which account shall be   blocked and pledged as security to the Finance Parties, in relation to any   ECA related financing.
    
	
 
    	
 
    	
 
    
	
Conditions Precedent:
    	
 
    	
Such conditions precedent as are usual and   customary for this type of financing, including but not limited to:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)
    	
The Parent Guarantor shall have consummated an   equity transaction (the “Equity Transaction”) consisting of one or   more of the following which will result in net cash proceeds of not less than   $235 million: (x) initial public offering and listing on New York Stock   Exchange in accordance with the documentation therefor and all applicable   laws (the “IPO”), or (y) offering of equity in a private   placement, provided, however, that $125 million of the Equity   Transaction may be provided by way of unconditional irrevocable commitments   from certain commitment parties listed in Schedule 1 to the Merger Agreement   (as defined below) to purchase additional equity for cash (for the avoidance   of doubt, it shall be a condition precedent that the Parent Guarantor shall   have received net cash proceeds of not less than $110 million from an IPO   and/or private placement on or prior to the Closing Date).
    

 

12

 

	
 
    	
 
    	
(ii)
    	
The Required Majority shall be satisfied with the   corporate and capital structure of the Parent Guarantor and its subsidiaries   after giving effect to the Acquisition, the Equity Transaction and the Credit   Facilities (the Acquisition, the Equity Transaction and the Credit Facilities   collectively referred to as, the “Transaction”).
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii)
    	
After giving effect to the Transaction, the Parent   Guarantor and its subsidiaries shall have no outstanding indebtedness or   contingent liabilities, except for (i) indebtedness incurred pursuant to   the Credit Facilities, (ii) the unsecured indebtedness (existing) to   Blue Mountain Capital and its affiliates (in the total amount of   $[     ] million) to be subordinated in form and   scope satisfactory to the Required Majority (i.e., no payment of interest or   principal, no granting of liens, etc.), provided, however,   that proceeds from equity issuances in excess of the Equity Trigger Condition   (i.e., net proceed of $235 million) can be used to pay interest and repay   such indebtedness and (iii) such other existing indebtedness and   disclosed contingent liabilities of the Parent Guarantor and its   subsidiaries, if any, as shall be permitted by the Administrative   Agent,  and all stock of the Parent Guarantor’s subsidiaries shall be   owned by the Parent Guarantor, in each case free and clear of liens (other   than those securing the Credit Facilities and such other exceptions as may be   mutually agreed upon).
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iv)
    	
All terms of, and the documentation for, each   component of the transactions contemplated herein shall be reasonably   satisfactory in form and substance to the Administrative Agent and the   Lenders, and all relevant documentation shall be in full force and effect.   All conditions precedent to the consummation of the Credit Facilities as   provided in the documents relating thereto shall be satisfied. The Credit Facilities   shall be consummated in accordance with the documentation therefore and all   applicable laws; and
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(v)
    	
Such other conditions precedent as the   Administrative Agent may reasonably require.
    
	
 
    	
 
    	
 
    
	
Conditions Subsequent:
    	
 
    	
It shall constitute an Event of Default under the   Credit Facilities if the Parent Guarantor shall have not received (i) in   aggregate not less than $150 million in net cash proceeds from new equity no   later than December 31, 2015, (ii) in aggregate not less than $190   million in net cash proceeds from new equity no later than June 30,   2016, and (iii) in aggregate not less than $235 million in net cash   proceeds from new equity no later than December 31, 2016.
    

 

13

 

	
Dividend Restriction:
    	
 
    	
The Parent Guarantor may not declare or pay any   dividends or make any restricted payments (including the repayment of the   Blue Mountain Debt, provided, however, that no such prepayment   shall be permitted until the Remaining Shipyard Payments (as defined below)   has been made in full, provided that proceeds from equity issuances in   excess of the Equity Trigger Condition (as defined below) (i.e., net proceed   of $235 million) may be used) to purchase or redeem the equity interest of   the Parent Guarantor, provided, however, that following the   satisfaction of the Equity Trigger Condition, the Parent Guarantor may   declare and pay dividends as long as (i) no default or event of default   exists at the time of declaration thereof and no payment default, payment   event of default, bankruptcy default or bankruptcy event of default or   default under any of the financial covenants exists at the time of payment   thereof, (ii) the aggregate amount of dividends paid in any fiscal year   does not exceed 50% of the Parent Guarantor’s consolidated net income in any   such fiscal year, (iii) the unrestricted cash and cash equivalents of   the Parent Guarantor and its subsidiaries on a consolidated basis shall be at   least no less than (A) the amount required under the Minimum   Consolidated Liquidity covenant plus (B) the Remaining Shipyard Payments   (as defined below) plus (C) $25 million (or $50 million prior to the   consummation of a Qualified IPO (to be defined)) immediately after giving   effect thereto and (iv) the aggregate fair market value of all   Collateral Vessels then acting as security pursuant to each Credit Facility   shall be at least 200% of the sum of (x) the then aggregate outstanding   principal amount of Loans minus (y) if after the consummation of a   Qualified IPO; any cash and cash equivalents of the Parent Guarantor and its   subsidiaries plus (z) if after the consummation of a Qualified IPO; the   Remaining Shipyard Payments under each Credit Facility.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Equity Trigger Condition” shall be deemed to   be satisfied on the date on which the net cash proceeds received by the   Parent Guarantor for the issuance of its equity interests equals at least   $235,000,000.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Remaining Shipyard Payments” means, as of   any date, (I) the aggregate delivery cost of all Chinese Newbuild   Vessels and Korean Newbuild Vessels minus (II) the aggregate equity   amount paid by the Parent Guarantor or its subsidiaries to the relevant   shipyard prior to such date minus (III) the aggregate principal amount   of Loans and unfunded commitments under the Sinosure Credit Facility and   Korean ECA Credit Facility. For the avoidance of doubt: if the Remaining   Shipyard Payments are negative it will be deemed as nil.
    
	
 
    	
 
    	
 
    
	
Documentation:
    	
 
    	
The Lenders’ commitments under the Credit Facilities   will be subject to the negotiation, execution and delivery of a definitive   financing agreement and related guarantees, mortgages, security agreements   and other supporting documentation consistent with the terms and conditions   herein and reasonably satisfactory to the Lenders and the Parent
    

 

14

 

	
 
    	
 
    	
Guarantor. Such documentation shall include, without   limitation, conditions precedent, representations and warranties, covenants,   and events of default that are usual and customary for facilities of this   type, in each case with such modifications as shall be deemed appropriate by   the Lenders, including, but not limited to breakage costs, gross-up and   indemnities (including, without limitation, in relation to withholding tax   and FATCA), increased costs, illegality, set-off and administration, market   disruption, sanctions, anti-corruption and anti-money laundering.
    

 

15

 

Collateral Vessels - Part A (Existing Vessels)

 

	
#
    	
 
    	
Vessel
    	
 
    	
Type
    	
 
    	
DWT
    	
 
    	
Year Built
    	
 
    	
Shipyard
    	
 
    	
FMV
    	
 
    	
Maximum Loan Amount
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
Genmar Consul
    	
 
    	
Handymax
    	
 
    	
47 400
    	
 
    	
2004
    	
 
    	
Uljanik Shipbuilding Projects Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
2
    	
 
    	
Genmar Compatriot
    	
 
    	
Panamax
    	
 
    	
72 749
    	
 
    	
2004
    	
 
    	
Dalian Shipbuilding Industry Co.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
3
    	
 
    	
Genmar Companion
    	
 
    	
Panamax
    	
 
    	
72 749
    	
 
    	
2004
    	
 
    	
Dalian Shipbuilding Industry Co.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
4
    	
 
    	
Genmar Defiance
    	
 
    	
Aframax
    	
 
    	
105 538
    	
 
    	
2002
    	
 
    	
Sumitomo Heavy Industries Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
5
    	
 
    	
Genmar Strength
    	
 
    	
Aframax
    	
 
    	
105 674
    	
 
    	
2003
    	
 
    	
Sumitomo Heavy Industries Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
6
    	
 
    	
Genmar Daphne
    	
 
    	
Aframax
    	
 
    	
106 560
    	
 
    	
2002
    	
 
    	
Tsuneishi Shipbuilding Co. Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
7
    	
 
    	
Genmar Elektra
    	
 
    	
Aframax
    	
 
    	
106 560
    	
 
    	
2002
    	
 
    	
Tsuneishi Shipbuilding Co. Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
8
    	
 
    	
Genmar George T
    	
 
    	
Suezmax
    	
 
    	
149 847
    	
 
    	
2007
    	
 
    	
Universal Shipbuilding Corporation
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
9
    	
 
    	
Genmar St. Nikolas
    	
 
    	
Suezmax
    	
 
    	
149 876
    	
 
    	
2008
    	
 
    	
Universal Shipbuilding Corporation
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
10
    	
 
    	
Genmar Kara G
    	
 
    	
Suezmax
    	
 
    	
150 296
    	
 
    	
2007
    	
 
    	
Universal Shipbuilding Corporation
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
11
    	
 
    	
Genmar Harriet G
    	
 
    	
Suezmax
    	
 
    	
150 296
    	
 
    	
2006
    	
 
    	
Universal Shipbuilding Corporation
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
12
    	
 
    	
Genmar Phoenix
    	
 
    	
Suezmax
    	
 
    	
153 015
    	
 
    	
1999
    	
 
    	
Hyundai Samho Heavy Industries
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
13
    	
 
    	
Genmar Horn
    	
 
    	
Suezmax
    	
 
    	
159 475
    	
 
    	
1999
    	
 
    	
Daewoo Shipbuilding & Marine Engineering Co. Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
14
    	
 
    	
Genmar Orion
    	
 
    	
Suezmax
    	
 
    	
159 992
    	
 
    	
2002
    	
 
    	
Samsung Heavy Industries
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
15
    	
 
    	
Genmar Argus
    	
 
    	
Suezmax
    	
 
    	
159 999
    	
 
    	
2000
    	
 
    	
Hyundai Heavy Industries Co. Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
16
    	
 
    	
Genmar Spyridon
    	
 
    	
Suezmax
    	
 
    	
159 999
    	
 
    	
2000
    	
 
    	
Hyundai Heavy Industries Co. Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
17
    	
 
    	
Genmar Maniate
    	
 
    	
Suezmax
    	
 
    	
164 715
    	
 
    	
2010
    	
 
    	
Hyundai Samho Heavy Industries Co. Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
18
    	
 
    	
Genmar Spartiate
    	
 
    	
Suezmax
    	
 
    	
164 925
    	
 
    	
2011
    	
 
    	
Hyundai Samho Heavy Industries Co. Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
19
    	
 
    	
Genmar Poseidon
    	
 
    	
VLCC
    	
 
    	
305 795
    	
 
    	
2002
    	
 
    	
Daewoo Shipbuilding & Marine Engineering Co. Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
20
    	
 
    	
Genmar Atlas
    	
 
    	
VLCC
    	
 
    	
306 005
    	
 
    	
2007
    	
 
    	
Daewoo Shipbuilding & Marine Engineering Co. Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
21
    	
 
    	
Genmar Hercules
    	
 
    	
VLCC
    	
 
    	
306 543
    	
 
    	
2007
    	
 
    	
Daewoo Shipbuilding & Marine Engineering Co. Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
22
    	
 
    	
Genmar Victory
    	
 
    	
VLCC
    	
 
    	
312 640
    	
 
    	
2001
    	
 
    	
Hyundai Heavy Industries Co. Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
23
    	
 
    	
Genmar Vision
    	
 
    	
VLCC
    	
 
    	
312 679
    	
 
    	
2001
    	
 
    	
Hyundai Heavy Industries Co. Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
24
    	
 
    	
Genmar Zeus
    	
 
    	
VLCC
    	
 
    	
318 325
    	
 
    	
2010
    	
 
    	
Hyundai Heavy Industries Co. Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
25
    	
 
    	
Genmar Ulysses
    	
 
    	
VLCC
    	
 
    	
318 695
    	
 
    	
2003
    	
 
    	
Hyundai Samho Heavy Industries Co. Ltd.
    	
 
    	
$
    	
—
    	
 
    	
$
    	
—
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
—
    	
 
    	
$
    	
581   000 000
    	
 
    

 

Collateral Vessels - Part B (Chinese Newbuilds)

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Maximum
    	
 
    	
Maximum Loan
    	
 
    
	
#
    	
 
    	
Chinese Newbuilds
    	
 
    	
Type
    	
 
    	
DWT
    	
 
    	
Delivery
    	
 
    	
Shipyard
    	
 
    	
Contract Price
    	
 
    	
Contingency
    	
 
    	
Amount
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(65% of Total Cost)
    	
 
    
	
1
    	
 
    	
Hull #1384
    	
 
    	
VLCC
    	
 
    	
320 000
    	
 
    	
Aug-15
    	
 
    	
Shanghai Waigaoqiao   Shipbuilding Co. Ltd.
    	
 
    	
$
    	
98   703 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
65   456 950
    	
 
    
	
2
    	
 
    	
Hull #1385
    	
 
    	
VLCC
    	
 
    	
320 000
    	
 
    	
Oct-15
    	
 
    	
Shanghai Waigaoqiao   Shipbuilding Co. Ltd.
    	
 
    	
$
    	
98   703 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
65   456 950
    	
 
    
	
3
    	
 
    	
Hull #1355
    	
 
    	
VLCC
    	
 
    	
320 000
    	
 
    	
Jan-16
    	
 
    	
Shanghai Waigaoqiao   Shipbuilding Co. Ltd.
    	
 
    	
$
    	
92   575 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
61   473 750
    	
 
    
	
4
    	
 
    	
Hull #1356
    	
 
    	
VLCC
    	
 
    	
320 000
    	
 
    	
Mar-16
    	
 
    	
Shanghai Waigaoqiao   Shipbuilding Co. Ltd.
    	
 
    	
$
    	
92   575 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
61   473 750
    	
 
    
	
5
    	
 
    	
Hull #1357
    	
 
    	
VLCC
    	
 
    	
320 000
    	
 
    	
Aug-16
    	
 
    	
Shanghai Waigaoqiao   Shipbuilding Co. Ltd.
    	
 
    	
$
    	
92   575 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
61   473 750
    	
 
    
	
6
    	
 
    	
Hull #1358
    	
 
    	
VLCC
    	
 
    	
320 000
    	
 
    	
Aug-16
    	
 
    	
Shanghai Waigaoqiao   Shipbuilding Co. Ltd.
    	
 
    	
$
    	
92   575 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
61   473 750
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
567   706 000
    	
 
    	
$
    	
12   000 000
    	
 
    	
$
    	
376   808 900
    	
 
    

 

Collateral Vessels - Part C (Korean Newbuilds)

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Maximum
    	
 
    	
Maximum Loan
    	
 
    
	
#
    	
 
    	
Korean Newbuild
    	
 
    	
Type
    	
 
    	
DWT
    	
 
    	
Delivery
    	
 
    	
Shipyard
    	
 
    	
Contract Price
    	
 
    	
Contingency
    	
 
    	
Amount
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(65% of Total Cost)
    	
 
    
	
1
    	
 
    	
Hull #5404
    	
 
    	
VLCC
    	
 
    	
300 000
    	
 
    	
Aug-15
    	
 
    	
Daewoo   Shipbuilding & Marine Engineering Co.
    	
 
    	
$
    	
94   050 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
62   432 500
    	
 
    
	
2
    	
 
    	
Hull #5405
    	
 
    	
VLCC
    	
 
    	
300 000
    	
 
    	
Oct-15
    	
 
    	
Daewoo   Shipbuilding & Marine Engineering Co.
    	
 
    	
$
    	
94   050 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
62   432 500
    	
 
    
	
3
    	
 
    	
Hull #5406
    	
 
    	
VLCC
    	
 
    	
300 000
    	
 
    	
Dec-15
    	
 
    	
Daewoo   Shipbuilding & Marine Engineering Co.
    	
 
    	
$
    	
94   050 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
62   432 500
    	
 
    
	
4
    	
 
    	
Hull #5407
    	
 
    	
VLCC
    	
 
    	
300 000
    	
 
    	
Dec-15
    	
 
    	
Daewoo   Shipbuilding & Marine Engineering Co.
    	
 
    	
$
    	
94   050 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
62   432 500
    	
 
    
	
5
    	
 
    	
Hull #5408
    	
 
    	
VLCC
    	
 
    	
300 000
    	
 
    	
Feb-16
    	
 
    	
Daewoo   Shipbuilding & Marine Engineering Co.
    	
 
    	
$
    	
97   050 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
64   382 500
    	
 
    
	
6
    	
 
    	
Hull #768
    	
 
    	
VLCC
    	
 
    	
320 000
    	
 
    	
Mar-16
    	
 
    	
Hyundai Samho Heavy   Industries Co. Ltd.
    	
 
    	
$
    	
95   300 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
63   245 000
    	
 
    
	
7
    	
 
    	
Hull #777
    	
 
    	
VLCC
    	
 
    	
300 000
    	
 
    	
May-16
    	
 
    	
Hyundai Heavy Industries   Co. Ltd.
    	
 
    	
$
    	
94   475 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
62   708 750
    	
 
    
	
8
    	
 
    	
Hull #769
    	
 
    	
VLCC
    	
 
    	
320 000
    	
 
    	
Jul-16
    	
 
    	
Hyundai Samho Heavy   Industries Co. Ltd.
    	
 
    	
$
    	
95   300 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
63   245 000
    	
 
    
	
9
    	
 
    	
Hull #139
    	
 
    	
VLCC
    	
 
    	
320 000
    	
 
    	
Jul-16
    	
 
    	
Hanjin Heavy Industries Co.   Ltd.
    	
 
    	
$
    	
96   361 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
63   934 650
    	
 
    
	
10
    	
 
    	
Hull #778
    	
 
    	
VLCC
    	
 
    	
300 000
    	
 
    	
Aug-16
    	
 
    	
Hyundai Heavy Industries   Co. Ltd.
    	
 
    	
$
    	
94   475 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
62   708 750
    	
 
    
	
11
    	
 
    	
Hull #2794
    	
 
    	
VLCC
    	
 
    	
320 000
    	
 
    	
Sep-16
    	
 
    	
Hyundai Samho Heavy   Industries Co. Ltd.
    	
 
    	
$
    	
101   310 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
67   151 500
    	
 
    
	
12
    	
 
    	
Hull #770
    	
 
    	
VLCC
    	
 
    	
320 000
    	
 
    	
Oct-16
    	
 
    	
Hyundai Samho Heavy   Industries Co. Ltd.
    	
 
    	
$
    	
95   300 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
63   245 000
    	
 
    
	
13
    	
 
    	
Hull #138
    	
 
    	
VLCC
    	
 
    	
320 000
    	
 
    	
Dec-16
    	
 
    	
Hanjin Heavy Industries Co.   Ltd.
    	
 
    	
$
    	
96   361 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
63   934 650
    	
 
    
	
14
    	
 
    	
Hull #2795
    	
 
    	
VLCC
    	
 
    	
320 000
    	
 
    	
Dec-16
    	
 
    	
Hyundai Samho Heavy   Industries Co. Ltd.
    	
 
    	
$
    	
101   310 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
67   151 500
    	
 
    
	
15
    	
 
    	
Hull #771
    	
 
    	
VLCC
    	
 
    	
320 000
    	
 
    	
Feb-17
    	
 
    	
Hyundai Samho Heavy Industries   Co. Ltd.
    	
 
    	
$
    	
95   300 000
    	
 
    	
$
    	
2   000 000
    	
 
    	
$
    	
63   245 000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
1   438 742 000
    	
 
    	
$
    	
30   000 000
    	
 
    	
$
    	
954   682 300
    	
 
    

 

16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}]]